Federal Reserve Bulletin, 1978-12

DECEMBER 1978 FEDERAL RESERVE BULLETIN Nonbank Thrift Institutions in 1977 and 1978 Foreign Exchange Operations: Interim Report Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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NUMBER 12 • VOLUME 64 • DECEMBER 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 927 NONBANK THRIFT INSTITUTIONS that were consistent with a moderation of IN 1977 AND 1978 inflation under the President's program. Thus, the Committee adopted ranges of Unlike the pattern in previous periods of 6!/2 to 9 per cent for M-2 and IV2 to 10 rising interest rates, deposit flows at savper cent for M-3 for the period from the ings and loan associations and mutual third quarter of 1978 to the third quarter savings banks were robust until the end of 1979. The Committee also indicated of 1977, weakened through the second that it expected growth of M-1 to be within quarter of 1978, and since June have aca range of 2 to 6 per cent over that period. celerated again. That range was both lower and wider than the range of 4 to 6V2 per cent that had 937 STAFF ECONOMIC STUDIES been adopted in July, in recognition of the The study analyzes "The Relationship be- uncertainty concerning the size and speed tween Reserve Ratios and the Monetary of the expected shift of deposits from Aggregates under Reserves and Federal demand to savings accounts resulting from Funds Rate Operating Targets" based on the introduction of ATS. The associated a multi-asset portfolio model of the finan- range for commercial bank credit was %Vi cial sector. to 1IV2 per cent. The Committee also decided that growth of M-1+ within a 939 TREASURY AND FEDERAL RESERVE range of 5 to IV2 per cent appeared to be generally consistent with the ranges of OPERATIONS: INTERIM REPORT growth for the other monetary aggregates. This report describes the market's pessi- With respect to policy for the short run, mism toward the dollar until November 1, the Committee agreed to instruct the when authorities of the United States and Manager to seek a Federal funds rate of several other industrial countries reinaround 9 per cent early in the period before forced a major new eflort to correct the the next regular meeting and subsequently falling dollar. to maintain the rate within a range of 83A to 9lA per cent. With regard to the specific 943 STATEMENT TO CONGRESS objective for the Federal funds rate within Chairman G. William Miller states that the that range, the Committee instructed the measures undertaken to strengthen the Manager to be guided mainly by a range dollar abroad will also help to control the of tolerance for the annual rate of growth persistently high domestic rate of infla- in M-2 over the October-November period tion, before the Joint Economic Commit- of 5V2 to 9V2 per cent, provided that the tee, December 15, 1978. rate of growth in M-l over that period did not exceed 6V2 per cent. 947 RECORD OF POLICY ACTIONS OF THE On November 1 the Treasury and the FEDERAL OPEN MARKET COMMITTEE Federal Reserve announced a broad program to strengthen the dollar in foreign At the meeting on October 17, 1978, the exchange markets and thereby to counter Committee decided that the existing continuing domestic inflationary pressures. ranges for M-2 and M-3 provided for rates As part of this program, the Committee of monetary growth over the year ahead raised the range for the Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

funds rate to 9^2 to 93A per cent and Adoption of a simplified version of the instructed the Manager, in deciding on the reports of condition and income for use specific objective for the rate within that by small member banks. range, to be guided by developing condi- Change in early-withdrawal penalty rule tions in domestic and international finanfor certain types of time deposits. cial markets. Admission of two State banks to member- 962 LAW DEPARTMENT ship in the Federal Reserve System. Amendments to Regulations D, E, and K Change in frequency of issuance of the and bank holding company and bank Federal Reserve Chart Book. merger orders and pending cases. Publication of consumer pamphlet, 4'If You Use a Credit Card." 989 ANNOUNCEMENTS Transmission to Congress of tentative 997 INDUSTRIAL PRODUCTION schedule of prices for Federal Reserve Output increased approximately 0.7 per check and automated clearinghouse servcent in November. ices. Examination procedures developed by A1 FINANCIAL AND BUSINESS STATISTICS Federal regulators of banks and thrift in- A3 Domestic Financial Statistics stitutions under the Community Reinvest- A46 Domestic Nonfinancial Statistics ment Act. A54 International Statistics Revisions of Regulation K to conform with certain provisions of the International A70 BOARD OF GOVERNORS AND STAFF Banking Act. (See Law Department.) A72 OPEN MARKET COMMITTEE AND STAFF; Statement by the three bank regulatory ADVISORY COUNCILS agencies indicating steps taken and planned to implement the International A73 FEDERAL RESERVE BANKS, BRANCHES, Banking Act of 1978. AND OFFICES Data available from a survey by the bank regulatory agencies on foreign lending by A74 FEDERAL RESERVE BOARD PUBLICATIONS large U.S. banks as of June 30, 1978. A79 INDEX TO STATISTICAL TABLES Deferral of Board action on amendments to Regulation Z (Truth in Lending). A81 INDEX TO VOLUME 64 Publication of Improving the Monetary Aggregates: Staff Papers and the Annual A92 MAP OF FEDERAL RESERVE SYSTEM Statistical Digest, 1973-1977. Changes in Board staff. INSIDE BACK COVER: Meeting of the Consumer Advisory Coun- Guide to Tabular Presentation and Statiscil. tical Releases Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank Thrift Institutions in 1977 and 1978 Sherry S. Atkinson, of the Capital Markets rates—in contrast to earlier periods of credit Section of the Division of Research and Statis- stringency. Lending by these institutions had tics, prepared this article. reached a record level in late 1977 in response both to sizable deposit inflows and to strong The pattern of deposit growth at savings and mortgage loan demand. From late 1977 through loan associations and mutual savings banks the third quarter of 1978, mortgage lending during the past 2 years has differed significantly contracted somewhat, largely in lagged response from the experience of previous periods of rising to slower deposit flows; nevertheless, the thrift interest rates. Yields on open market securities institutions maintained a high level of mortgage have increased steadily since early 1977 and lending by relying more heavily on nondeposit now stand well above the maximum rates pay- liabilities and by limiting their acquisition of able on deposit accounts at thrift institutions. liquid assets. Moreover, the increased flow of Despite these increases in market rates, deposit funds since the introduction of the 6-month flows remained relatively robust until the end money market certificates has allowed the thrift of 1977, when they began to weaken; this institutions to replenish liquid assets and to weakness persisted through the second quarter increase mortgage lending commitments. of 1978. With the introduction of a variable- The money market certificates have been a ceiling certificate account on June 1, 1978, relatively expensive source of funds, in large however, deposit growth has accelerated to rel- measure because they have attracted deposits atively strong levels. that otherwise would have been held in lower- The atypical deposit flows of 1977 and 1978 yielding accounts. However, the profitability of may be explained in large part by changes in the thrift industry had grown appreciably over account structure that have resulted from regu- the 3 years prior to the introduction of the new latory actions during the 1970's. Following the certificates, reaching historically high levels introduction of a number of time-account cate- during the first half of 1978. Given the record gories in the early years of the decade, the favorable spread between the average cost of proportion of total outstanding deposits in ac- funds and the return on funds in mid-1978, counts with longer maturities has increased most thrift institutions apparently have thus far considerably. This development has enhanced absorbed the additional cost of the money marthe stability of deposit growth in periods when ket certificates with little difficulty. Moreover, market yields begin to rise. In addition, the the 6-month certificate has attracted new ability of thrift institutions to compete for funds funds—or maintained existing funds—that othduring periods of high interest rates has been erwise might have been diverted to alternative bolstered by the most recent adjustment in investments. Thus, the new instrument allows deposit-rate regulations, which allows deposi- the institutions to extend more mortgage loans tary institutions to issue 6-month certificates at current high rates of interest, and consewhose ceiling rate varies weekly with Treasury quently profitability over the longer run may bill rates. well be enhanced. With greater flexibility in acquiring both de- Credit unions only recently have been auposits and nondeposit funds, savings and loan thorized to issue money market certificates, in associations and mutual savings banks have an effort to avoid a repetition of the net outflow reduced their mortgage lending activity only of deposits in October. Prior to that time, the moderately with the recent rise in interest percentage growth in shares at credit unions had Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

928 Federal Reserve Bulletin • December 1978 outpaced deposit growth at other thrift institu- 1. Growth of deposits tions, continuing the trend of recent years. The Savings and loans and mutual savings banks combined authorization to issue money market certificates Seasonally adjusted annual rates, per cent 11 40 is one in a series of regulatory actions that have broadened the asset and liability powers of credit unions in 1977 and 1978. RAPID PORTFOLIO EXPANSION: 1977 Q1 through 1977 Q3 Portfolio expansion of savings and loan associations and mutual savings banks remained strong in the first three quarters of 1977 in spite of increases in open market interest rates (Table 1). The strength in deposit growth underlying this expansion was concentrated primarily in 1. Sources and uses of funds Billions of dollars at seasonally adjusted annual rates 1977 1978 runas iy/o Ql Q2 Q3 Q4 Ql Q2 Q3 Savings and loan associations SOURCES Deposits 50.2 51.5 50.4 59.7 42.3 35.7 40.2 54.3 Borrowed funds 1 -1.7 6.1 8.7 2.6 17.8 15.7 19.5 11.5 Other sources, net2 3.5 3.9 4.9 5.1 4.4 5.0 1.1 4.6 Total 52.0 61.4 63.9 67.4 64.5 56.5 60.7 70.5 USES Cash and investments3 6.1 10.5 8.8 6.0 -.3 .8 7.6 15.5 Mortgages 4 43.2 46.8 54.9 58.2 60.7 50.2 50.6 49.1 Other5 2.6 4.1 .3 3.2 4.2 5.5 2.5 5.9 Total 52.0 61.4 63.9 67.4 64.5 56.5 60.7 70.5 SOURCES Mutual savings banks Deposits .. 13.0 11.6 10.7 12.8 9.4 8.2 6.9 11.6 Other sources, net6 .7 2.7 .7 1.0 .9 4.5 1.9 1.5 Total 13.7 14.3 11.4 13.8 10.3 12.7 8.8 13.1 USES Cash and investments 7 5.8 8.1 2.8 3.9 .5 4.5 .5 4.0 Mortgages 4.1 2.5 7.2 8.0 8.1 6.8 6.9 7.9 Other8 3.7 3.7 .9 1.5 1.5 1.1 1.4 1.2 Total .. 13.7 14.3 11.4 13.8 10.3 12.7. 8.8 13.1 SOURCES Credit i unions Shares 6.0 7.1 7.0 8.9 8.3 9.2 8.3 6.0 Current surplus .4 .4 .4 .4 .5 .5 .5 .5 Total 6.4 7.5 7.4 9.4 8.8 9.7 8.7 6.5 USES Cash and liquid assetstf .9 .4 -.4 3.7 1.7 1.5 -1.5 - 4 Consumer credit.., 4.9 6.6 7.3 5.2 6.7 7.7 9.8 6.4 Mortgages .5 .4 .4 .4 .4 .4 .4 .4 Total 6.4 7.5 7.4 9.4 8.8 9.7 8.7 6.5 1 Includes net changes in Federal home loan bank advances, 5 Includes net changes in consumer credit and miscellaneous security repurchase agreements, bank loans, and corporate assets. bond liabilities. 6 Includes net changes in miscellaneous liabilities and gen- 2 Includes net changes in miscellaneous liabilities, profit eral reserve accounts less net change in other assets not set taxes payable, and current surplus less net change in assets out separately under 4'uses." not set out separately under "uses." 7 Includes net changes in cash and deposits, U.S. Treasury 3 Includes net changes in deposits and currency, U.S. and agency securities, State and local government securities, Treasury and agency securities, State and local government commercial paper, and security repurchase agreements. securities, open market paper, Federal funds, and repurchase 8 Includes net changes in corporate bonds and stock, conagreements. sumer credit, and miscellaneous assets. 4 Includes net change in mortgages less net change in loans 9 Includes net changes in demand deposits and currency, in process. savings and loan shares, and U.S. Government securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank Thrift Institutions 929 time accounts (Chart 1). The relatively rapid 2. Treasury yields and deposit rate ceilings growth in time deposits compared with pass- Per cent per annum book accounts continued a trend that has been evident in the 1970's (Table 2). This restructuring of deposits has helped moderate deposit outflows when interest rates begin to rise, owing to the higher yields available on time deposits and the substantial penalties exacted for withdrawal prior to maturity. In the third quarter of 1977, deposit inflows at both savings and loan associations and mutual savings banks were exceptionally strong, even though short-term interest rates by this time exceeded ceiling rates on passbook and shorter- Years to maturity term time accounts (Chart 2). Although the Ceilings are effective yields after compounding. reasons for this strength in deposit growth remain uncertain, the number of thrift institutions period, was associated not only with the expanoffering longer-term certificates at ceiling rates sion of residential construction, but also with did increase noticeably during this period. Also, household borrowing against inflated equity in the relative growth of deposits at commercial the stock of existing homes. (See "Household banks and at thrift institutions suggests that the Borrowing in the Recovery," FEDERAL RElatter attracted a disproportionately large share SERVE BULLETIN, March 1978.) Even with the of the funds from 4-year certificates that were rapid growth in mortgages, the strength in dematuring during the period. These deposits had posit flows enabled thrift institutions to continue been acquired between July 1 and November accumulating liquid assets. As a result, the 1, 1973, when 4-year certificates with minimum liquidity ratio at savings and loan associations denominations of $1,000 had no ceiling rate of insured by the Federal Savings and Loan Insurinterest and became known as "wild cards." ance Corporation (FSLIC)—defined as the ratio They may have been especially interest sensiof cash and eligible liquid assets relative to tive, and therefore, those funds remaining in deposits and short-term borrowings—remained deposit form upon maturing may have flowed in the range of 9 lA to 93A per cent on a seasonpredominantly into thrift institutions because of ally adjusted basis, well above the legal rethe interinstitutional differential in rate ceilings quirement of 7 per cent (Chart 3). By the end of lA of a percentage point. of the third quarter, however, the rate of acqui- Net acquisitions of mortgages by savings and sition of cash and liquid assets by savings and loan associations and mutual savings banks ac- loan associations had begun to slow perceptibly. celerated throughout the first three quarters of Although the thrift institutions in general did 1977 to record levels. The demand for mortgage not rely heavily upon borrowed money during funds, which was quite strong throughout this these three quarters, a number of savings and loan associations did increase their use of such alternative sources of funds as security repur- 2. Deposit mix at savings and loans chase agreements (Rp's) and mortgage-backed and mutual savings banks bonds. Funds raised with Rp's increased an Per cent of total deposits in time accounts estimated $1.0 billion between December 1976 FSLlC-insured Mutual savings and September 1977. In addition, issuance of Year-end savings and loans banks mortgage-backed bonds in the first three quarters 1972 49.4 25.1 of 1977 amounted to $600 million, about five 1973 53.3 32.0 1974 55.9 34.4 times the total amount issued previously by 1975 57.3 36.1 1976 59.7 38.6 savings and loan associations. These relatively 1977 62.1 40.8 new instruments, which generally have had ma- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

930 Federal Reserve Bulletin • December 1978 3. Liquidity of FSLIC-insured savings and loans and mutual savings banks declined to the slowest rates since 1974 (Chart 4). Per cent Mortgage lending activity reacted with a characteristic lag to the decline in deposit growth. For the first time in about 3 years, net deposit flows and mortgage repayments—the two major sources of funds to savings and loan associations—failed to keep pace with mortgage loan commitments. Consequently, the ratio of outstanding commitments to future 3-month cash flow from these sources began to rise significantly in the fourth quarter of 1977, and the associations started to reduce their commitment activity by early 1978 (Chart 5). Thus, outstanding commitments at these institutions, including loans in process, peaked at a record Average liquidity ratio is cash and liquid assets eligible to satisfy FHLBB regulatory requirements as a per cent of de- $33.7 billion, seasonally adjusted, in December posits plus borrowings payable within 1 year; seasonally adjusted. 1977. Net mortgage acquisitions by both savings and loan associations and mutual savings turities of 5 to 10 years, are collateralized by banks, which reached an unprecedented annualmortgages in the portfolios of the savings and ized flow of $68.8 billion in the fourth quarter loan associations issuing the obligations. of 1977, declined in the first quarter of 1978 by nearly 20 per cent—owing in part to weather—and remained approximately at that lower level in the second quarter. Even so, net DEPOSIT FLOW SLOWDOWN: mortgage acquisition was still quite high and 1977 Q4 to 1978 Q2 was stronger than might have been anticipated on the basis of past relationships between lend- From the later months of 1977 through the ing and deposit flows. spring of 1978, deposit flows into thrift institutions weakened markedly as open market inter- Thrift institutions were able to limit the deest rates moved well above regulatory ceilings cline in mortgage lending during this threeon most deposit accounts. On a seasonally ad- quarter period in large part by borrowing extenjusted basis, deposit flows at savings and loan associations and mutual savings banks com- 4. Rates of deposit growth bined fell from an average annual rate of $65.6 Savings and loans and mutual savings banks combined billion during the first three quarters of 1977 Per cent to $47.6 billion over the next three quarters (Table 1). Short-term yields, which had surpassed the ceiling rate on passbook accounts in the third quarter of 1977, rose to a level approximately 1 lA percentage points above that ceiling by mid-1978. In response, net inflows to passbook accounts had virtually ceased by the first quarter of 1978. Moreover, intermediate-term market interest rates moved above maximum rates payable on time deposits of all maturities over this period, depressing the growth of these accounts (Chart 2). Total de- 1974 1976 1978 posit growth at savings and loan associations Seasonally adjusted annual rates based on month-end data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank Thrift Institutions 931 5. Mortgage commitments and cash flow the first quarter of 1978, and a record $1.0 Savings and loans billion in the second quarter of 1978. Billions of dollars Liquidity positions at savings and loan associations and mutual savings banks deteriorated throughout this period. Despite increases in the dollar holdings of cash and investment securities in the first half of 1978, the aggregate liquidity ratio at FSLIC-insured savings and loan associations declined steadily on a seasonally adjusted basis from 9.6 per cent in August 1977 to 8.3 per cent in May 1978 (Chart 3). The average spread between actual and required liquidity ratios for these institutions narrowed to an historical low in April 1978 prior to a reduction in the required ratio to 6.5 per cent effective May 1. Liquidity at mutual savings banks followed a similar trend. EARNINGS INCREASED THROUGH MID-1978 Commitments are as of the end of the month and include loans The profitability of savings and loan associations in process. Cash flow includes mortgage repayments and net changes in deposits in subsequent 3 months. Data are season- and mutual savings banks—as measured by the ally adjusted. ratio of net income to average assets—began a steady improvement in 1975, reaching an sively from the Federal home loan banks. From historic high during the first half of 1978 (Chart September 1977 through mid-1978, outstanding 6). Despite the heavier reliance of thrift instituadvances rose nearly $10 billion on a seasonally tions on borrowed funds, which in general are adjusted basis to a record $26.2 billion. During more expensive than deposits in periods of relathis period, the home loan banks made it known tively high interest rates, the spread between to member institutions that advances would average mortgage returns and the average cost likely remain available to help offset the pres- of funds has risen steadily since the end of 1974. sures of the slowdown in deposit flows. Meanwhile, borrowings by savings and loan associa- 6. Earnings of thrift institutions tions from other sources increased, especially through Rp's. Savings and loan associations also were able to sustain their mortgage originations over this period by selling more mortgages than they purchased. Associations in California and certain other western States primarily accounted for most of the increased volume of mortgage sales in secondary markets; however, savings and loan associations in other areas also increased their mortgage sales relative to purchases. Net sales of mortgages by the savings and loan industry as a whole amounted to $0.5 billion in the fourth quarter of 1977, $0.3 billion in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

932 Federal Reserve Bulletin • December 1978 At FSLIC-insured savings and loan associations among the thrift institutions and where deposithis spread reached a record high of 185 basis tors are apparently sensitive to fluctuations in points in the first half of 1978 (Table 3). yields on alternative investments. As a result, The profit margins of mutual savings banks during periods of high interest rates, these instihave remained significantly below those of sav- tutions experience relatively large deposit outings and loan associations, a longstanding rela- flows and thus are limited in acquiring new tionship that can be attributed to several factors. higher-yielding assets. Mutual savings banks are located primarily in In addition, more than half of the assets of the large financial centers of the Northeast, the savings bank industry are in institutions in where there is intense competition for savings New York State, where an &V2 per cent usury ceiling has made it more difficult to earn a market rate of return during periods of credit 3. Earnings position of FSLIC-insured savings stringency.1 The greater concentration of savand loan associations ings and loan associations in the western and Per cent southern States, where housing demand and Interest deposit growth have been relatively strong, has Cost of return on Col. 2 less enabled these institutions to earn higher profits funds1 mortgages col. 1 Period by maintaining a larger proportion of their port- .life (2) (3) folios in new, higher-yielding assets. 1967 HI 4.76 6.00 1.24 Despite increases in the level of earnings, the H2 4.66 6.02 1.36 capital position of thrift institutions—measured 1968 as the ratio of net worth at savings and loan HI 4.71 6.08 1.37 H2 4.76 6.17 1.41 associations, or general reserve accounts at mu- 1969 tual savings banks, to assets—has declined sec- HI 4 82 6.29 1.47 ularly (Chart 7). In early 1977, net worth rela- H2 4.94 6.40 1.46 tive to assets at savings and loan associations 1970 HI 5.24 6.50 1.26 leveled off at roughly 5.5 per cent, down a full H2 5.36 6.62 1.26 percentage point from early 1972. The decline 1971 in the capital position of mutual savings banks HI 5.38 6.75 1.37 H2 5.37 6.86 1.49 has been less pronounced, perhaps because of 1972 their relatively weaker growth in deposits. Since HI 5.39 6.93 1.54 the beginning of 1977, the ratio of general H2 5.37 7.02 1.60 reserve accounts to assets of savings banks has 1973 HI 5.46 7.10 1.64 ranged between 6.7 and 6.8 per cent, only H2 5.72 7.23 1.51 slightly less than the 1972 ratio and down less 1974 than V2 of a percentage point from the highs HI 6.00 7.35 1.35 H2 6.28 7.51 1.23 experienced in 1974. However, the capital po- 1975 sition of mutual savings banks has weakened HI 6.31 7.59 1.28 markedly from the ratio of 8.5 per cent recorded H2 6.34 7.74 1.40 1976 HI 6.35 7.87 1.52 H2 6.40 8.03 1.63 1 Mutual savings banks in New York State may hold out-of-State—defined as nonadjoining-State—conven- 1977 tional mortgages in amounts up to 20 per cent of assets. HI 6.39 8.14 1.75 H2 6.48 8.28 1.80 Furthermore, there is no limit on the dollar volume of Government-underwritten mortgages, adjoining-State 1978 mortgages, and mortgage-backed securities in portfolios HI 6.54 8.39 1.85 of New York State savings banks; and savings banks may acquire limited amounts of corporate obligations, 1 Interest and dividends paid on savings, FHLB advances, municipal securities, U.S. Government securities, and and other borrowed money as a per cent of average savings and borrowings. Federal agency securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank Thrift Institutions 933 7. Capital positions of thrift institutions of open market rates. The maximum rates payable on newly issued money market certificates vary weekly with the average discount yield on newly issued 6-month Treasury bills. Thrift institutions may pay a nominal yield of up to 25 basis points above the average discount rate set in the weekly auction of 6-month Treasury bills while commercial banks may pay interest at the discount rate on such instruments. Depositary institutions may compound interest on the money market certificate as on any other deposit account. The minimum denomination of the 6-month time deposit is $10,000, the same as that for 6-month Treasury bills. Capital positions are net worth as a per cent of assets for savings and loan associations and general reserve accounts as Surveys indicate that many depositary instia per cent of assets for mutual savings banks. Data are for end of period. tutions have adopted this new instrument. At the end of October, an estimated 75 per cent in the early 1960's and those of 9.0 to 9.5 per of commercial banks, including almost all of cent in the 1950's. the large institutions, were offering the variable-ceiling certificate. Participation by thrift institutions was also widespread, with roughly 90 per cent of savings and loan associations and THE REGULATORY CHANGES almost 70 per cent of mutual savings banks IN MID-1978 issuing the money market certificate. Moreover, In the face of markedly weakened deposit the majority of institutions offering the 6-month growth and sharply increased reliance on instrument were paying the maximum allowable nondeposit funds, the Federal regulatory agen- yields. These yields have increased sharply cies authorized the issuance of two new certifi- since introduction of the new certificate (Chart cates at commercial banks and thrift institutions 8), so that maximum effective yields at thrift inbeginning June 1, 1978. These certificates were stitutions, which were about 13A per cent in June, designed to aid depositary institutions in at- have since risen over 2lA percentage points. tracting and retaining funds—especially during periods of high interest rates—and to reduce the 8. Yield on money market certificates potential for a serious disruption of mortgage Thrift institutions credit flows. The longer of the two certifi- Per cent cates—the 8-year account—has a minimum denomination of $1,000 and carries a ceiling rate of 8 per cent at thrift institutions and 13A per cent at commercial banks. Even so, open market rates on securities with comparable maturity climbed above the ceiling rates on this instrument shortly after its introduction (Chart 2). As a result, sales of this long-term certificate probably have been relatively sluggish, attracting little additional money to the institutions. In contrast, the other new time account—the 6-month money market certificate—was de- Yields correspond to regulatory ceilings assuming continuous signed to yield a competitive return regardless compounding of interest on the basis of a 360-day year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

934 Federal Reserve Bulletin • December 1978 DEPOSIT FLOWS REBOUND rate) since June, compared with about 6 per cent The money market certificate has attracted a earlier in 1978. In light of the sharp increases sizable volume of deposits in its first 5 months in open market interest rates since mid-1978, (Table 4). Through October 1978, sales at thrift markedly weaker deposit growth would have institutions are estimated to have totaled about been expected in the absence of the new instru- $34 billion, accounting for about 6 per cent of ment; during previous periods of comparable total deposits outstanding at these institutions. open market yields, deposit growth at thrift To a large extent, the growth of money mar- institutions was in the range of roughly 3 to ket certificates at thrift institutions represents a 5 per cent. shifting of deposits from other accounts. Such In the third quarter of 1978, thrift institutions a shift is suggested by the recent pattern of apparently used most of the proceeds of the growth in time and passbook account deposits: certificate sales to rebuild liquid assets and to in the first 2 months of certificate issuance, moderate their borrowing. In part this may repassbook deposits declined by an average an- flect a normal lag in adjusting mortgage loan nual rate of more than 15 per cent, while time originations following an unanticipated surge in deposits grew at an average rate of more than deposits; it likely also reflects a desire to repair 30 per cent (Chart 1). The institutions them- some of the damage done earlier in the year selves have estimated that the proportion of to their balance sheets. Sizable increases were certificate sales representing new money—that recorded in cash and liquid assets at both mutual is, money new to the individual institu- savings banks and savings and loan associations—ranges from about 25 to 35 per cent for tions. As a result, the liquidity ratio at FSLICmutual savings banks to about 40 to 50 per cent insured savings and loan associations, seasonfor savings and loan associations. These per- ally adjusted, increased for the first time this centages may not be a reliable gauge of the year (Chart 3). At mutual savings banks, cash aggregate impact on deposit flows, however, for and short-term investment securities rose relathey include transfers of funds between like tive to outstanding deposits. institutions, and more important, they make no With the enlarged flow of deposits to the allowance for the retention of shifted passbook institutions, borrowing from Federal home loan or maturing certificate dollars that might other- banks and others has declined significantly. wise have been diverted to high-yielding open Following a seasonally adjusted increase in market instruments. home loan bank advances of about $6.0 billion An examination of aggregate data on thrift in the first 5 months of 1978, advances have institutions suggests that the money market cer- risen by less than $4.0 billion in the second 5 tificate has had a significant positive impact on months. Over the same period, borrowing from the deposit growth of thrift institutions. The other sources has also dropped off markedly. combined growth of savings and loan associa- Outstanding mortgage commitments at savtions and mutual savings banks has averaged ings and loan associations, which had been around 12% per cent (seasonally adjusted annual declining since the end of 1977, bottomed out 4. Estimated inflows into money market certificate accounts Billions of dollars except as noted Certificates outstanding, Inflows1 end of October IInnssttiittuuttiioonn June July August September October Amount Per cent2 Commercial banks 2.1 3.4 2.3 1.9 4.2 13.9 3.5 Savings and loans 4.9 6.0 3.1 4.0 6.9 24.9 5.9 Mutual savings banks... 1.6 1.9 1.5 1.1 2.8 8.9 6.4 All 8.6 11.3 6.9 7.0 13.9 47.7 5.0 1 Inflows into certificates at commercial banks and mutual savings banks through the last Wednesday of the month. Estimates of the sales of certificates at savings and loan associations based on sample data for 247 large associations. 2 Per cent of total outstanding small-denomination time and savings deposits for commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank Thrift Institutions 935 with the initial pick-up in deposit flows in June since June and in some parts of the country may and since then have risen appreciably on a not now cover the cost of intermediation. Even seasonally adjusted basis (Chart 5). Net mort- in the short run, however, the negative impact gage acquisitions, on the other hand, have fol- on thrift institution earnings from the declining lowed the normal lagged pattern, showing little rate of return on assets is mitigated by increased change in the third quarter of 1978. accumulation of assets. However, to the extent that the money market As a result of these earnings pressures, some certificates stimulate the flow of funds to the thrift institutions have become less aggressive thrift institutions during periods of high interest in advertising and promoting the certificates. rates, the availability of residential mortgage Scattered reports suggest that, in addition, a credit should be greater than in past periods of number of thrift institutions have offered less comparable credit stringency. With the new than maximum allowable rates, set purchase certificates, thrift institutions may book high- maximums, or totally suspended certificate isyielding mortgages at a time when they other- suance. Competitive pressures in many market wise would have been forced to contract their areas have restricted this development. And portfolios. with the beginning of rollovers in early December, a number of institutions have again stepped up promotion of the money market certificate. EFFECT OF MONEY MARKET From a longer-run perspective, the new cer- CERTIFICATES ON EARNINGS tificates could increase earnings over time, as The money market certificates, which have in- short-term interest rates decline, because they creased the cost of funds to the thrift institu- have allowed the institutions to book more tions, probably have cut into earnings. The high-yielding mortgages with an average life of greatest cost impact is associated with the shift- 8 to 12 years. For this reason, many thrift ing of funds that otherwise would have remained institutions intentionally may accept a negative in passbook accounts or rolled over into time rate spread temporarily (when the cost of money accounts at the same institutions. For example, market certificates exceeds the mortgage yield) funds that previously earned an effective yield in order to promote long-run profitability. The after compounding of no more than about 5l/i relatively strong earnings position of thrift inper cent in passbook deposits, would have stitutions, at least in the aggregate, permits such earned effective yields averaging more than 83A a strategy. In contrast, during other periods in per cent if they had been transferred into money which short-term interest rates exceeded longmarket certificates between June and December term rates, the institutions experienced deposit of this year. The cost burden of such shifting outflows and contractions in mortgage lending. has likely been heaviest for mutual savings banks—especially those located in market areas where there is intense competitive pressure to CONTINUED GROWTH AT offer the new certificates at ceiling rates. Com- CREDIT UNIONS pared with savings and loan associations, mutual savings banks have a greater proportion of In line with the trend of recent years, the pertotal deposits in large passbook accounts and centage growth in shares of credit unions contherefore are more vulnerable to costly deposit tinued to outpace deposit growth at the other shifting. With profit margins lower at savings thrift institutions. Share account balances at banks than at savings and loans, increases in credit unions increased $7.7 billion during the cost of funds have a larger relative impact 1977, representing a gain of 19.6 per cent. on savings bank earnings. Moreover, the Although share growth moderated to an annual spread between maximum effective rates paid rate of 16.7 per cent in the face of high and on newly issued money market certificates and rising market interest rates during the first 9 mortgage yields has narrowed fairly steadily months of 1978, it has remained well in excess Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

936 Federal Reserve Bulletin • December 1978 of the growth rate at savings and loan associa- 9. Deposit growth at thrift institutions tions and mutual savings banks (Chart 9). Per cent However, credit unions experienced net deposit outflows in October, and consequently the National Credit Union Administration authorized Federally chartered credit unions to offer the 6-month money market certificate beginning November 20. Credit unions may issue certificates at the thrift-institution ceiling rate in minimum denominations of $10,000. Consumer lending, the primary investment outlet for credit unions, surged dramatically in response to the exceptionally strong demand for instalment credit that has marked the present economic expansion. Credit unions increased Seasonally adjusted annual rates. their outstanding consumer loans by a record annual total of $6.5 billion during 1977, and certificates is 13A per cent—8 per cent for indinet lending accelerated to a seasonally adjusted vidual retirement and Keogh accounts—in conannual rate of $8.7 billion during the first half trast to the 7 per cent ceiling on regular share of 1978 before moderating to $6.4 billion during accounts. In addition, some credit unions now the third quarter. Loan-to-share ratios at credit may offer "share draft" accounts, which permit unions have climbed markedly during the past the depositor to withdraw funds via third-party 2 years in the face of this heightened lending payments. Also, Federal credit unions have activity, while the ratios of liquid assets to total been given authority to make 30-year residential assets have declined to historic lows. mortgage loans, an activity already permitted Since late 1977 the National Credit Union for certain State-chartered credit unions. Pre- Administration has authorized Federally char- viously, Federal credit unions had been limited tered credit unions to offer a wider variety of to 10-year maturities on such loans. fixed-ceiling share accounts and has relaxed the Finally, the Congress has recently enacted constraints on mortgage lending. In addition to legislation that would create a central liquidity the traditional share account, which is similar facility to meet the temporary and emergency to a passbook savings account at other institu- liquidity needs of credit unions. The facility tions, Federal credit unions now are permitted will provide these thrift institutions with a lender to offer share certificates with maturities of 90 of last resort designed to improve the financial days or longer. The interest rate ceiling on these stability of its members. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

937 Staff Economic Studies The research staffs of the Board of Governors In all cases the analyses and conclusions set of the Federal Reserve System and of the forth are those of the authors and do not Federal Reserve Banks undertake studies that necessarily indicate concurrence by the Board cover a wide range of economic and financial of Governors, by the Federal Reserve Banks, subjects, and other staff members prepare or by the members of their staffs. papers related to such subjects. In some in- Single copies of the full text of each of the stances the Federal Reserve System finances studies or papers summarized in the BULLEsimilar studies by members of the academic TIN are available in mimeographed form. The profession. list of Federal Reserve Board publications at From time to time the results of studies that the back of each BULLETIN includes a sepaare of general interest to the economics pro- rate section entitled uStaff Economic Studies" fession and to others are summarized—or they that enumerates the papers prepared on these may be printed in full—in this section of the studies for which copies are currently available FEDERAL RESERVE BULLETIN. in mimeographed form. STUDY SUMMARY THE RELATIONSHIP BETWEEN RESERVE RATIOS AND THE MONETARY AGGREGATES UNDER RESERVES AND FEDERAL FUNDS RATE OPERATING TARGETS KENNETH J. KOPECKY—Staff, Board of Governors Prepared as a staff paper in the summer of 1978 This paper examines the theoretical relationship demand deposit reserve ratio. Under this between the required reserve ratios of banks operating target if one aim of policy were to against demand and time deposits and both the minimize demand deposit variability, the deaverage level and the short-run variability (un- mand deposit reserve ratio should be set at its expected movements around the average level) upper limit—a result consistent with findings of a monetary aggregate such as demand depos- that have been reported in the literature. its. The analysis is developed under two alter- The analysis presented in this paper finds a native Federal Reserve operating targets—re- striking difference for the demand deposit reserves and Federal funds rate—and is based on serve ratio in the case of a Federal funds rate a multi-asset portfolio model of the financial operating target. Under this operating target, sector. both the level and the variability of demand For the reserves operating target, the analysis deposits are either unaffected by or positively shows that both the level and the variability of related to the demand deposit reserve ratio. demand deposits are inversely related to the Thus, a lowered reserve ratio against demand Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

938 Federal Reserve Bulletin • December 1978 deposits may lead to a reduction in demand target, causality basically runs in the opposite deposit variability. direction: deposits to reserves. Given the quan- Essentially, under a reserves operating target tity of deposits demanded by the public at the causality runs from a policy-determined level policy-determined level of the funds rate, suffiof bank reserves to an induced quantity of cient reserves are created to enable banks to deposits. The size of the resulting quantity of satisfy their reserve requirements. Under a funds deposits depends on the size of the reserve ratio, rate operating target, the size of the reserve ratio with a higher reserve ratio inducing a smaller determines principally the size of the induced quantity of deposits. For a funds rate operating quantity of reserves. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

939 Treasury and Federal Reserve Foreign Exchange Operations: Interim Report This interim report, covering the period August 1. Federal Reserve through October 1978, is the twelfth of a series reciprocal currency arrangements providing information on Treasury and System Millions of dollars foreign exchange operations to supplement the Amount Amount regular series of semiannual reports that are of facility, Increases, of facility, Institution Oct. 31, 1978' Nov. 1, 1978 Nov. 1, 1978 issued usually in March and September. It was Austrian National Bank 250 250 prepared by Alan R. Holmes, Manager, System National Bank of Belgium 1,000 1,000 Bank of Canada 2,000 2,000 Open Market Account, and Executive Vice National Bank of Denmark 250 250 Bank of England 3,000 3,000 President in charge of the Foreign Function of Bank of France 2,000 2,000 the Federal Reserve Bank of New York, and German Federal Bank 4,000 22,,000000 6,000 Bank of Italy 3,000 3,000 Scott E. Pardee, Deputy Manager for Foreign Bank of Japan 2,000 3,000 5,000 Bank of Mexico 360 360 Operations of the System Open Market Account Netherlands Bank 500 500 and Vice President in the Foreign Function of Bank of Norway 250 250 Bank of Sweden 300 300 the Federal Reserve Bank of New York. Swiss National Bank 1,400 2,600 4,000 Bank for International Settlements: Swiss francs/dollars 600 600 Other authorized European currencies/dollars 1,250 1,250 During the 3-month period under review, mar- Total 22,160 7,600 29.760 ket pessimism toward the dollar deepened. As selling pressure intensified, dollar rates plunged to record lows against several currencies, ex- difference in growth performance, coupled with ceeding any levels justified by underlying eco- special factors such as the earlier jump in the nomic conditions. On November 1, the U.S. U.S. oil import bill, had contributed to a masauthorities reinforced a major new effort, in sive imbalance in trade and current accounts coordination with the authorities of .several other among the industrial countries, with the United industrial countries, to correct what President States in substantial deficit and others—such as Carter termed "the excessive decline of the Japan, Germany, and Switzerland—in substandollar." The November 1 package was broadly tial surplus. well received, and good two-way trading was The dollar exchange rates against the currensoon restored with the dollar at levels signifi- cies of these countries had already declined cantly above the lows at the end of October. substantially over the previous year, but the The market's pessimism during the Au- effects of these changes on trade balances had gust-October period reflected the persistence of not yet fully materialized. Moreover, the dolserious economic imbalances among major in- lar's decline was contributing to the quickening dustrial nations. For some time, market partici- of inflation in this country. By contrast, in other pants and government officials alike had ex- countries price performance was improving, pressed concern over the differential rates of particularly where the appreciations of curreneconomic growth between the United States, cies lowered import costs. which had posted a solid expansion since 1975, Many market participants had become skepand most other industrial countries, where tical that these disparities in price trends would growth had been disappointingly slow. This be reversed in the near term and perceived a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

940 Federal Reserve Bulletin • December 1978 considerable downslide risk for the dollar. Pro- using balances acquired from correspondents or fessional dealers, therefore, became reluctant to drawing on the respective swap arrangements buy and hold dollars whenever the dollar came with the German Federal Bank. The Desk also on offer. Trading in dollars became increasingly intervened in New York in Swiss francs both one way. Some market participants found that for the Federal Reserve, drawing on the swap they could profit by selling dollars short, while line with the Swiss National Bank, and for the others sought to protect themselves against fur- Swiss National Bank. In all, the Desk operated ther erosion of the value of their assets by on 31 of the 64 business days during the period, shifting into foreign currencies and other com- selling on behalf of the U.S. authorities a total modities such as gold. Beginning in September, of $2,204.4 million equivalent of German marks the tensions in the dollar market were com- and $294.2 million equivalent of Swiss francs. pounded by a renewed burst of speculation over By the end of October, however, the decline a possible realignment of currencies within the of the dollar had clearly been excessive against European Community (EC) "snake" as a pre- a number of major currencies. From the earlylude to the broader European Monetary System August levels, the dollar had fallen by a net under negotiation by EC members. The German 18 per cent against the German mark, 17 per mark was revalued against the other snake cur- cent against the Swiss franc, and 7 per cent rencies on October 15, but the reversal of the against the Japanese yen. Moreover, the dollar earlier positions had barely begun by the end had declined generally vis-a-vis other major of the month. European currencies: against the French franc By late summer, however, underlying condi- by 10 per cent, the pound sterling by 8 per cent, tions were beginning to improve, and there was and the Italian lira by 6 per cent. And, in view reason to expect that the improvement would of the prevailing mood and trading conditions continue. Economic expansion in Germany and in the exchange markets, few expected the dol- Japan was more solidly based and the govern- lar's slide to stop on its own or be reversed ments were introducing additional stimulative over the short run. measures. For Japan export and import volumes For the United States, the dollar's decline were beginning to respond to the exchange-rate threatened to undermine the effort to curb inflachange. At the same time, the growth of the tion, including the newly announced voluntary U.S. economy was moderating. Following the wage and price control program. It also threatbulge in the U.S. trade deficit early this year, ened to undercut the efforts of the Japanese, import demand was beginning to slacken while German, Swiss, and other governments to stimexports were expanding rapidly. Moreover, fur- ulate domestic growth. Consequently, by late ther stabilization measures were being taken by October the U.S. authorities were in close conthe U.S. authorities. Monetary and fiscal poli- sultation with their counterparts in other councies were progressively tightened. The Congress tries, and the essential elements of a coordinated passed the long-awaited energy bill. On October approach to correct the situation were in place 24, President Carter announced a comprehensive by the end of the month. anti-inflation program, including additional On the morning of November 1, President budgetary restraints and the introduction of vol- Carter, the U.S. Treasury, and the Federal Reuntary wage and price guidelines. serve announced various actions to be taken. Throughout the 3-month period, the Treas- The President emphasized the link between this ury and the Federal Reserve continued to in- program and the broader anti-inflation policies tervene to counter disorderly conditions in the of the U.S. Government as well as the fact that New York market in operations conducted by the program had been developed and would be the Foreign Exchange Trading Desk of the Fed- implemented in close cooperation with major eral Reserve Bank of New York. These opera- governments and central banks abroad. The tions were mainly in German marks, on behalf program featured a further tightening of moneof both the Federal Reserve and the Treasury, tary policy, including a 1-percentage-point in- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 941 2. Foreign exchange operations: The Desk followed up the announcements Summary, July 31-October 31, 1978 with active intervention in the New York market Millions of dollars equivalent; data are on a transaction-date basis. in German marks, Swiss francs, and Japanese yen. These operations were fully coordinated Transactions with Type of transaction German Federal Bank with intervention by other central banks in their Reciprocal currency arrangements own markets and in New York for their own Commitments outstanding, July 31, 1978 account. The dollar rebounded sharply, and Drawings or repayments (-) Aug. 1-Oct. 31, 1978 r1,157.5 there were similar favorable responses in U.S. Commitments outstanding, 1 -551.9 Oct. 31, 1978 1,256.1 financial markets generally. Over the next days U.S. Treasury swap arrangement the central banks occasionally found it necessary Commitments outstanding, July 31, 1978 197.0 to respond forcefully. Gradually, however, the Drawings or repayments (-), Aug. 1-Oct. 31, 1978 796.9 market came into better balance, with good Commitments outstanding, 343.5 Oct. 31, 1978 650.4 two-way trading at levels well above the late- Transactions with October lows. The technical conditions alone Swiss National Bank favored a firm dollar, as the covering of previous Reciprocal currency arrangements short positions and unwinding of commercial Commitments outstanding, July 31, 1978 22.9 leads and lags began to bolster the demand for Drawings or repayments (-), Aug. 1-Oct. 31, 1978 294.2 dollars. But the central banks remained prepared Commitments outstanding, Oct. 31, 1978 317.0 to intervene quickly and in size whenever re- Special swap arrangement newed selling pressure on the dollar threatened Commitments outstanding, July 31, 1978 278.8 to erupt. By November 30, the dollar had ad- Repayments, Aug. 1-Oct. 31, 1978 -91.9 Commitments outstanding, vanced 11% per cent against the German mark, Oct. 31, 1978 186.9 \5l/2 per cent against the Swiss franc, and IW2 U.S. Treasury securities (foreign currency series) per cent against the Japanese yen. Commitments outstanding, July 31, 1978 850.4 Issues or redemptions (-) As indicated, in intervention operations dur- Aug. 1-Oct. 31, 1978 -137.5 Commitments outstanding, ing the August-October period, the Desk of the Oct. 31, 1978 712.9 Federal Reserve Bank of New York sold German marks and Swiss francs on behalf of the crease in the Federal Reserve discount rate to U.S. authorities. Of the $2,204.4 million an historic high of 9Vi per cent and a $30 billion equivalent sales of German marks, $1,318.4 package of foreign currency resources to finance million was for the account of the Federal Re- U.S. participation in coordinated intervention in serve and $886.0 million for the Treasury. Of the exchange markets. For the Federal Reserve, the Federal Reserve's sales, $1,157.5 million this comprised a $7.6 billion increase in the equivalent was financed by drawings under the swap network through increases in the swap swap line with the German Federal Bank. The arrangements with the German Federal Bank by rest was financed by balances acquired from $2 billion to $6 billion, with the Bank of Japan correspondents. However, the Federal Reserve by $3 billion to $5 billion, and with the Swiss was able to liquidate a total of $551.9 million National Bank by $2.6 billion to $4 billion. The of swap debt in marks from other acquisitions Federal Reserve also announced the activation of marks from correspondents during the 3of the swap arrangement with the Bank of month period. Consequently, net drawings by Japan. For its part, the Treasury announced that the System in marks for the period amounted it would draw $3 billion from the U.S. reserve to $605.6 equivalent, raising the total to $1 position with the International Monetary Fund 256.1 million equivalent by October 31. and sell $2 billion equivalent of special drawing Similarly, the Treasury financed $796.9 milrights to mobilize balances of German marks, lion of its intervention in marks by drawings Japanese yen, and Swiss francs. The Treasury on its swap arrangement with the German Fedalso announced that it would issue foreign cur- eral Bank, with the rest coming from balances. rency-denominated securities up to $10 billion. The Treasury's repayment of previous swap Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

942 Federal Reserve Bulletin • December 1978 debt amounted to $343.5 million equivalent 3. Net profits and losses (-) on U.S. Treasury during the 3-month period. Total debt under the and Federal Reserve foreign exchange operations, August 1 through October 31, Treasury's swap line rose by a net of $453.4 1978 million equivalent to $650.4 million equivalent at the end of October. Millions of dollars In Swiss francs, the Federal Reserve sales of Liquidations of $294.2 million equivalent were financed by fur- IInnssttiittuuttiioonn op C e u r r a r t e io n n t s d f e o b r t e s i gn ou t c s u t r a r n e d n i c n y g as of Aug. 15, 1978 ther drawings on the swap arrangement with the Swiss National Bank. The System's swap debt E Fe x d c e h r a a n l ge R e S se ta rv b e il ization -15.3 -92.8 for current operations in Swiss francs rose from Fund -3.2 -129.7 $22.9 million of francs in early August to $317.0 million equivalent on October 31. denominated securities, leaving $712.9 million In addition, the Federal Reserve and the U.S. equivalent of these obligations still outstanding Treasury continued with the program agreed to as of October 31. in October 1976 for an orderly repayment of In view of the dollar's depreciation, repaypre-August 1971 Swiss franc-denominated lia- ments of earlier obligations in German marks bilities still outstanding with the Swiss National and Swiss francs led to realized net losses for Bank. The Federal Reserve liquidated $91.9 the Federal Reserve and the U.S. Treasury in million equivalent of special swap debt with the operations during the August-October period. Swiss central bank, leaving $186.9 million For the Federal Reserve, these losses amounted equivalent of indebtedness still outstanding as to $15.3 million on current operations and $92.8 of October 31. These repayments were financed million on liquidations of the longer-term Swiss with francs purchased directly from the Swiss franc indebtedness. For the Treasury, the real- National Bank mainly against dollars but also ized net losses amounted to $3.2 million on against marks. The Treasury used Swiss francs current operations and $129.7 million on liquipurchased directly from the Swiss central bank dation of the longer-term Swiss franc indebtto repay $137.5 million equivalent of franc- edness. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

943 Statement to Congress Statement by G. William Miller, Chairman, role as wage gains have moved up to about 8Vi Board of Governors of the Federal Reserve per cent during a period when growth in pro- System, before the Joint Economic Committee ductivity has slowed to a virtual standstill. At of the U.S. Congress, December 15, 1978. the same time, Government-mandated increases in the minimum wage and in payments for social Mr. Chairman, members of this committee, security and unemployment insurance have thank you for the opportunity to participate in added a further premium to labor compensation. this important dialogue. At present, the econ- Finally, the cumulative depreciation of the dolomy is at a critical juncture. Economic growth lar's foreign exchange value has had an adverse has continued at a moderate pace, but the rate impact on domestic prices that has yet to run of inflation is unacceptably high and poses an its course. ever-growing threat to our social and economic Looking ahead, there is a threat that wage structure. While the challenge for public policy demands could be further escalated, especially is clearly formidable, these problems are not with a heavy collective bargaining calendar for insurmountable. The Federal Reserve, for its 1979 in an environment where inflationary expart, is continuing to pursue a monetary policy pectations are intense. Cost pressures are also that aims at a reduction of inflationary pressures likely to be further exacerbated by another round while encouraging continued economic growth of legislated increases in payroll taxes and the and high levels of employment. minimum wage. However, the Government's The rise in economic activity has been both over-all anti-inflation program holds out the real vigorous and generally well balanced since the hope that inflationary pressures can be contained present expansion began in early 1975. The and that the groundwork can be laid for gradual sharp swings in inventories and production that attainment of price stability. The success of the have ended previous cyclical upswings have program requires cooperation, perseverance, been avoided. Growth in the latter part of this and patience from all groups of our society. An year—well into the fourth year of expansion— important new ingredient of the program is the has moderated, but this represents a desirable quantitative standards. If adhered to, these adjustment in the pace of activity, given the standards could very well help unwind the inintensification of inflationary pressures, the rise tractable spiral of wages and prices. But it is in capacity use, and the decline in unemploy- particularly important that the program recogment that has occurred over the expansion pe- nize that Government actions can, in themriod. selves, be important sources of inflation; conse- The persistence and recent intensification of quently, fiscal restraint and regulatory reform high inflation has been the most serious problem are essential components of this comprehensive in the present expansion. Consumer price in- set of proposals. creases generally remained in the 6V2 per cent Inflation in the United States not only has range over the 1975-77 period, but these prices eroded the value of the dollar domestically but have risen at a 9V2 per cent pace thus far this has also been associated with a decline in its year. Some of this acceleration can be attributed international value. The drop in the exchange to weather-related disturbances and to unex- value of the dollar, in turn, adversely affected pected developments in the farm sector. Labor the domestic price level. It raised the cost of cost pressures also have played an important imported goods and also resulted in a further Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

944 Federal Reserve Bulletin • December 1978 ratcheting up of domestic prices for those goods Federal Open Market Committee voted to take competing with imports. While the dramatic further actions to tighten conditions in the drop of late October underscored the problem money market and thereby to resist excessive of deteriorating international confidence in the expansion of money and credit. Furthermore, value of the dollar, the period of decline in this in order to provide a substantial increase in current episode dates back to late September foreign exchange available to finance exchange 1977. market intervention, swap lines were increased From that date to its low in late October of with the central banks of Germany, Japan, and this year, the dollar's exchange value declined Switzerland by a total of $7.6 billion. The U.S. 21 per cent on a weighted-average basis against Treasury simultaneously announced its intention the currencies of the Group of Ten countries and to draw a portion of the U.S. reserve position Switzerland. Against some individual curren- in the International Monetary Fund, to sell species, of course, the decline was even greater, cial drawing rights, and to issue foreign curamounting to 26 per cent against the German rency-denominated securities. Over all, $30 mark, 34 per cent against the Japanese yen, and billion in key foreign currencies was mobilized 38 per cent against the Swiss franc. Since im- by the United States for forceful, coordinated portant external imbalances between the United intervention to support the dollar in foreign States and major foreign countries have existed exchange markets. In addition, the Treasury for several years—most notably differential announced a further step-up in its rate of gold growth and, more recently, disparate inflation- sales. ary trends—some depreciation of the dollar The objective of this coordinated set of could be viewed as a necessary correction. measures was to correct the excessive deprecia- However, by midsummer it was clear that the tion of the dollar as part of the governmental dollar's decline was continuing in trading that effort to reduce upward pressures on domestic was increasingly disorderly. Consequently, in prices and to restore confidence at home and August the Federal Reserve announced a half- abroad. When viewed in its entirety, the policy point increase in the discount rate and an elimi- initiatives of the administration and the Federal nation of reserve requirements on Euro-dollar Reserve provide a clear message that U.S. ecoborrowings. At the same time, the Treasury nomic policy is one that recognizes fully the indicated that it would increase and extend its need for an integrated approach in dealing with regular monthly gold auctions. foreign and domestic economic problems. These measures, which produced a brief rally The measures taken on November 1 produced and then a few weeks of stability for the dollar, a dramatic jump in the dollar's exchange value. were followed by another rise in the discount On that day alone the dollar advanced by 5 per rate, of 3A of a percentage point, between mid- cent on a weighted-average basis and by about September and mid-October. But the dollar's the same amount against the mark, yen, and slide soon resumed, and it dropped alarmingly Swiss franc. Substantial cooperative central to a level well below that warranted by basic bank intervention over the following few weeks economic considerations. As a result, the se- provided support for the dollar as market partiverity of this latest decline threatened to under- cipants tested the authorities' resolve. The cut the anti-inflation program at home and lead strength of the dollar generally has been susto an even greater erosion of confidence abroad. tained as the market appears to have adjusted Under these circumstances, more forceful ac- to a more favorable outlook generated by the tion was clearly necessary. Accordingly, on recent policy measures. November 1 the Federal Reserve increased the To date, the observable repercussions in dodiscount rate 1 percentage point and imposed mestic capital markets also have been generally a supplementary reserve requirement of 2 per favorable. In the stock market, most composite cent on large time deposits. In addition, the share-price measures are up from the November Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress 945 1 announcement date following relatively sharp lenders changed in the course of the current declines in the preceding 2 weeks. Short-term expansion but also monetary institutions have interest rates have moved as much as 1 percent- been given additional flexibility to compete for age point higher since the announcement; how- funds. This has helped smooth adjustments of ever, over this same period interest rates for credit markets to developing tightness and, as longer-term maturities have been essentially a result, has helped avoid the repetition of unchanged. The comparative stability of most 4'credit crunch" episodes such as in 1969 and long-term bond rates, as well as the improve- 1973-74. The new 6-month money market cerment in the dollar's exchange value, is most tificates, introduced half a year ago, have butencouraging and suggests that we may be be- tressed deposit growth at mortgage lending inginning to reduce inflationary expectations. stitutions when prevailing market interest rates A downward adjustment of price expectations might otherwise have produced disintermediais an essential condition to slow the treadmill tion. Consequently, total housing starts have of inflation, and monetary policy has an impor- remained at a very high rate—2 million units— tant role to play in this regard. However, at the during the first three quarters of this year. same time, the Federal Reserve will continue Building activity may soon begin to decline, but to encourage a moderate expansion of over-all the drop-off next year should be relatively modactivity, thus also facilitating the achievement erate, making it unlikely that the economy will of the Nation's longer-run goals of growth and be thrown into a recession by a sharp housing full employment. Moreover, as I have empha- cycle. sized before, monetary policy should not be Furthermore, signs generally remain on the expected to shoulder the burden alone, and to positive side for consumer spending, as real be effective, it must also be accompanied by consumption outlays currently are rising at prudent restraint of fiscal policy. about the pace of over-all demands. Nonethe- Since April, credit conditions have become less, this represents a marked slowdown from progressively tauter as Federal Reserve policies the rate of expansion earlier in the current have allowed market rates to rise appreciably upswing. Near-term growth in consumer spendin order to help restrain expansion in money ing probably will be somewhat restrained by and credit. Yields on most short-term market high debt repayment burdens as well as by instruments, such as Federal funds and com- efforts to boost personal savings rates back to mercial paper, have risen more than 3 percent- more normal levels. age points during this period, while interest rates In the business sector, capital spending activat the longer end of the maturity spectrum ity continues to be characterized by substantial generally have risen by less than a percentage momentum as equipment orders have moved up point. briskly in recent months and construction con- Experience over recent years has taught us, tracts have been maintained at a high level. however, that in an inflationary environment, However, the early surveys of 1979 investment expectational considerations tend to buffer the plans suggest that businessmen maintain a linimpact of high interest rates on spending. Ex- gering caution about embarking on major expectations of rising prices of real assets may pansion programs. These surveys—largely induce borrowers to incur high interest costs, taken before the November 1 measures—unas is illustrated by the sustained pace of activity doubtedly reflected the uncertainty associated in the housing market thus far this year. Indeed, with an economy plagued by high inflation. real interest rates—or observed rates adjusted On balance, private demands appear healthy to take account of inflation—appear to be gen- at present, but a further moderation of growth erally lower than in prior periods, especially if is likely over the year ahead. In this environtaxes are taken into consideration. ment the Federal Reserve will continue to strive Not only have expectations of borrowers and for a gradual deceleration of monetary and credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

946 Federal Reserve Bulletin • December 1978 expansion in an effort to facilitate an easing of conditions in foreign exchange markets. At the inflationary pressures. We believe that the ac- same time, you can be assured that recent tions taken in late October and early November measures in the international area were designed will prove to be instrumental in the restoration to reinforce and not to sacrifice the achievement of both domestic price stability and orderly of longer-term domestic aims. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

947 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON OCTOBER 17, 1978 1. Domestic Policy Directive The information reviewed at this meeting suggested that output of goods and services had expanded moderately in the third quarter, but that the rate of growth 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—was rapid in the third quarter, although it was well below the annual rate of about 12 per cent in the second quarter. Staff projections for the year ending in the third quarter of 1979 were little changed from those of a month earlier. They continued to suggest that output of goods and services would grow somewhat more slowly than over the first three quarters of 1978. The rate of inflation was expected to remain rapid, although also moderating a bit from its pace thus far in 1978. The unemployment rate was projected to change little from its September level. In September the index of industrial production increased an estimated 0.5 per cent, close to the average rate of expansion in the preceding 4 months. Nonfarm payroll employment changed little in September following relatively small increases in July and August. In manufacturing, employment was essentially unchanged in September and the average workweek held steady at an advanced level. The unemployment rate edged up from 5.9 to 6.0 per cent, the rate prevailing on the average since the first quarter of the year. Total private housing starts declined slightly in August, but they remained above an annual rate of 2 million units. Sales of new houses fell for the third consecutive month; however, a surge in sales of existing dwellings raised total sales of single-family homes to a new high. The dollar value of total retail sales was estimated to have increased considerably in September following the large rise now Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

948 Federal Reserve Bulletin • December 1978 indicated for August. For the third quarter as a whole, however, the advance in retail sales was substantially below the exceptional gain in the second quarter. Unit sales of new automobiles fell in September to an annual rate well below the average pace since early spring. Newly revised data suggested that the index of average hourly earnings of private nonfarm production workers had risen at an annual rate of 7.9 per cent through September 1978 compared with an increase of 7.4 per cent for 1977 as a whole. In August, as in July, the consumer price index rose more moderately than in most earlier months of the year, as prices of some foods declined substantially. In September, however, producer prices of food products turned up sharply and contributed to a marked rise in prices of producer finished goods. Announcement of a new Government program aimed at moderating increases in prices and wages was expected to be made shortly after this meeting. The trade-weighted value of the dollar against major foreign currencies fell substantially from mid-September to mid-October in frequently volatile exchange markets. The U.S. trade deficit declined sharply in August, reversing the pronounced increase in July; for the 2 months the deficit was close to the rate for the second quarter and well below the high rate for the first quarter. The expansion in total credit at U.S. commercial banks, which had slowed in August, accelerated in September nearly to the pace experienced on the average in earlier months of the year. Bank investments and security loans rose in September after having declined in August, while growth in real estate and business loans moderated only slightly from the rapid rates recorded in other recent months. Outstanding commercial paper of nonfinancial businesses rose somewhat in September following a small decline in August. Growth in the narrowly defined money supply (M-l) accelerated further in September to an annual rate of about 14 per cent from 8.5 per cent in August. However, data for early October suggested a sharply reduced growth rate in the current month. Inflows of the interest-bearing deposits included in M-2 and M-3 remained strong in September, and growth in the broader monetary aggregates also accelerated somewhat. At its meeting on September 19 the Committee had decided on ranges of tolerance for the annual rates of growth in M-l and M-2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 949 during the September-October period of 5 to 9 per cent and 6V2 to IOV2 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 8V2 per cent, slightly above the prevailing level of about 83/s per cent. Subsequently, if the 2-month growth rates of M-1 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 8V4 to 83A per cent. Following the September 19 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 8I/2 per cent. As September progressed, incoming data suggested that growth in M-l would be around the upper limit of the range specified by the Committee and that growth in M-2 would be in the upper portion of its range. Accordingly, the Manager sought reserve conditions consistent with further increases in the Federal funds rate, and by late September the rate was around 8% per cent, the upper limit of the inter-meeting range specified by the Committee. During the first half of October the objective for the funds rate remained 8% per cent, although on many days the rate was above or below that level for technical reasons. A considerable rise in interest rates on most short-term market instruments was associated with the increase in the Federal funds rate during the inter-meeting period. Yields on Treasury and corporate bonds also moved somewhat higher, but they remained below their July peaks. Yields on State and local government bonds changed little, reflecting in part a markedly reduced volume of new issues. In late September commercial banks increased the rate on loans to prime business borrowers from 9V2 to 93A per cent; in mid-October this rate was raised further to 10 per cent. The Board of Governors announced an increase in Federal Reserve Bank discount rates from 13A to 8 per cent on September 22 and a further increase to 8I/2 per cent on October 13. Both actions were taken primarily to bring the discount rate into closer alignment with other short-term interest rates, but also in recognition of conditions affecting the dollar in foreign exchange markets. The Board indicated in addition that the increase of V2 percentage point in mid-October was approved in light of the continued high Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

950 Federal Reserve Bulletin • December 1978 rate of inflation and the recent rapid expansion of the monetary aggregates. In the Committee's discussion of the economic situation and outlook, the members generally agreed that real output of goods and services was likely to grow moderately over the year ending in the third quarter of 1979, at a rate about or a little below that projected by the staff. Given their expectations for output, the members anticipated that over the period the unemployment rate would change little from its recent level or would increase somewhat. All members expected that average prices of goods and services would continue to rise rapidly. Despite the general agreement that real output was likely to grow moderately over the next four quarters, some members cited elements in the current situation that could contribute to a downturn in activity before the end of the period. It was pointed out, for example, that the current business expansion—now well into its fourth year—had lasted for a long time by historical standards and that the dynamics of business fluctuations suggested that a downturn might well develop sometime within the coming year. Also, business-cycle history provided little encouragement for the expectation that growth in output could gradually be slowed to a pace more or less consistent with its long-run potential and with relative stability in the unemployment rate. Moreover, rapid inflation was viewed as a serious threat to the sustainability of the expansion in output, although buying of goods might be buoyed for a time by anticipation of further price increases. At the same time, attention was drawn to favorable elements in the economic situation. Specifically, housing starts and residential construction had been maintained at higher levels than had been expected earlier, and the outlook for business fixed investment seemed to have strengthened lately. Altogether, final sales apparently had picked up in recent months while growth in output had moderated, tending to improve prospects for activity in the months immediately ahead. Finally, there were grounds for believing that improvement in the net export position would lend strength to domestic output. At this meeting the Committee reviewed its 12-month ranges for growth in the monetary aggregates. At its meeting in July 1978 the Committee had specified the following ranges for the period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 951 from the second quarter of 1978 to the second quarter of 1979: 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 growth in commercial bank credit was 8V2 to IIV2 per cent. The ranges being considered at this meeting were for the period from the third quarter of 1978 to the third quarter of 1979. In contemplating ranges for growth of the monetary aggregates over the year ahead, the Committee faced unusual uncertainties. First, commercial banks were authorized to introduce an automatic transfer service (ATS) on November 1, although there was a chance that introduction would be stayed by court action; and in the closing days of the session of the Congress just ended, Federally chartered depositary institutions in New York State were authorized to offer NOW accounts. ATS would provide for automatic shifts of funds from interest-earning savings accounts to demand accounts, and thus would enable customers to hold much lower balances in demand accounts. This service, therefore, seemed likely to alter substantially the relationship between growth of M-l and growth of nominal GNP. Second, no authoritative information was yet available on the President's new program to moderate increases in wages and prices, which was expected to be announced shortly after this meeting. In the Committee's discussion of longer-run ranges, the point was stressed that the program would have its greatest potential for moderating inflationary expectations if it were perceived by the public as an additional measure in the campaign against inflation and not as a substitute for fiscal and monetary restraint. With respect to ATS, a staff analysis had suggested that during a transition period a significant shift in funds from demand deposits to savings deposits at commercial banks was almost sure to occur, but its size was uncertain. Therefore, the rate of growth of M-l over the year ahead was likely to be lower than otherwise, but the amount of the reduction could be within a fairly wide range. Growth of M-2, on the other hand, might be raised marginally, reflecting minor shifts of deposits from nonbank thrift institutions to savings accounts at commercial banks. It appeared unlikely that growth of M-3 would be noticeably affected. A new measure of money, designated M-l +, had been developed by the staff to provide background information with regard to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

952 Federal Reserve Bulletin • December 1978 behavior of money, particularly the transactions demand for money, during the transition period. Growth of this aggregate—defined as M-1 plus savings deposits at commercial banks, NOW accounts at nonbank thrift institutions, and demand deposits at mutual savings banks—would not be affected by shifts from demand deposits to savings deposits at commercial banks. Members of the Committee suggested different approaches to take account of the uncertainties noted above in setting the longerrun ranges for the aggregates. One proposal was to adopt ranges for M-l, M-2, and M-3 as before, in the expectation that introduction of ATS would have little effect on growth of the aggregates in the few months before the Committee would again consider its longer-run ranges. Under this approach, a supplementary range for growth in M-l adjusted for estimated effects of ATS and a range for growth in M-1+ might be indicated as "memorandum items" for monitoring purposes. Another proposal was to drop M-l from the list of aggregates, adopting longer-run ranges only for M-2 and M-3 at this time. It was suggested, along with this proposal, that additional work on the concepts and measurement of money be undertaken with a view to adopting new measures when the Committee next considered its longer-run ranges. Additional proposals involved retaining M-l and adopting ranges for M-l, M-2, and M-3 as before, with specific adjustments to take account of the special uncertainties. One proposal was to adjust downward both the upper and the lower limits of the range for M-l by an estimate of the probable effects of ATS. Another was to widen the range for M-l, chiefly by reducing the lower limit. A third was to couple such a widening of the range for M-l with notation of a supplementary range for M-l4- to aid in evaluating the behavior of both M-l and M-2. At the conclusion of the discussion, the Committee decided that the existing ranges for M-2 and M-3 provided for rates of monetary growth over the year ahead that were consistent with a moderation of inflation under the President's program. Thus, the Committee adopted ranges of 6V2 to 9 per cent for M-2 and IV2 to 10 per cent for M-3 for the period from the third quarter of 1978 to the third quarter of 1979. The Committee also indicated that it expected growth of M-l to be within a range of 2 to 6 per cent over that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 953 period. That range was both lower and wider than the range of 4 to 6V2 per cent that had been adopted in July, in recognition of the uncertainty concerning the size and speed of the expected shift of deposits from demand to savings accounts resulting from the introduction of ATS. The associated range for commercial bank credit was 8V2 to IIV2 per cent. The Committee also decided that growth of M-1+ within a range of 5 to IV2 per cent appeared to be generally consistent with the ranges of growth for the other monetary aggregates. The Committee adopted the following ranges for rates of growth in monetary aggregates for the period from the third quarter of 1978 to the third quarter of 1979: M-2, 6V2 to 9 per cent; M-3, IVi to 10 per cent. M-l was expected to grow within a range of 2 to 6 per cent over the period, depending in part on the speed and extent of transfers from demand to savings deposits resulting from the introduction of ATS. The associated range for bank credit is SV2 to IIV2 per cent. Growth of M-1+ (M-l plus savings deposits at commercial banks and NOW accounts) in a range of 5 to IV2 per cent was thought to be generally consistent with the ranges for the foregoing aggregates. Votes for this action: Messrs. Miller, Volcker, Baughman, Coldwell, Eastburn, Jackson, Partee, and Mrs. Teeters. Votes against this action: Messrs. Wallich, Willes, and Winn. Absent and not voting: Mr. Gardner. Messrs. Wallich, Willes, and Winn dissented from this action because, with the Committee's longstanding objective of slowing the rate of inflation in mind, they preferred to specify an upper limit of less than 6 per cent for the rate of growth of M-l, adjusted for the estimated effects of ATS. In their view, the upper limit of 6 per cent, adjusted for ATS, represented an unwarranted increase from the 6V2 per cent upper limit of the existing (pre-ATS) range. In the discussion of policy for the period immediately ahead, members of the Committee noted that the uncertainties associated with introduction of ATS would affect growth of the monetary aggregates in the October-November period—the 2-month period for which growth ranges were being considered—in much the same way as they would growth over the year ahead. Specifically, growth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

954 Federal Reserve Bulletin • December 1978 of M-l over the 2-month period might well be less than otherwise by a significant but undetermined amount, and growth of M-2 might be marginally greater. As in the case of the longer-run ranges, various proposals were advanced for taking account of the unusual uncertainties. In general, these proposals involved placing less emphasis on the behavior of M-l as a guide to operations in the inter-meeting period and more on the behavior of M-2, rather than the approximately equal weight that typically had been given to the two aggregates. One proposal was to drop M-l altogether as an operating guide. Another was to give primary emphasis to M-2 and to specify only an upper limit for M-l rather than a range, reflecting a judgment that rapid growth in M-l would have significance for policy while slow growth might represent chiefly transfers from demand to savings accounts because of the introduction of ATS. A third proposal was to widen the range for M-l, while indicating a range for M-1 + as an aid in evaluating the behavior of the other monetary aggregates. At the same time, most members of the Committee favored giving greater weight than usual to money market conditions in the conduct of operations in the period until the next meeting of the Committee. In the discussion, concern was expressed about recent rates of monetary growth, and most members believed that some additional firming in money market conditions in the period immediately ahead was needed to help assure a slowing in growth over the months ahead. They favored directing open market operations toward an increase in the Federal funds rate to about 9 per cent shortly after this meeting, with an inter-meeting range of 8% per cent to either 9V4 or 9V2 per cent. Other members believed that for the time being operations should be directed toward maintaining the money market conditions currently prevailing, as represented by a Federal funds rate of about 8% per cent, because they felt that such a pause was needed to evaluate the lagged impact of the substantial increases in interest rates over recent months. These members suggested an inter-meeting range of 8% to 9 per cent. With respect to the monetary aggregates, a number of members proposed a range of Vi to 6V2 per cent for the annual rate of growth in M-l over the October-November period. Those members who Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 955 preferred to specify only an upper limit, rather than a range, for growth in M-l over the 2-month period suggested limits of 5, 6, and 7 per cent. For M-2, a range of 5xh to 9lh per cent was proposed by the largest number of members; one slightly higher and one slightly lower were also suggested. At the conclusion of the discussion the Committee agreed to instruct the Manager to seek a Federal funds rate of around 9 per cent early in the period before the next regular meeting and subsequently to maintain the rate within a range of 83A to 9lA per cent. With regard to the specific objective for the Federal funds rate within that range, the Committee instructed the Manager to be guided mainly by a range of tolerance for the annual rate of growth in M-2 over the October-November period of 5lh to 9lh per cent, provided that the rate of growth in M-l over that period did not exceed 6V2 per cent. 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 grew moderately in the third quarter, although the pace was somewhat below the average for the first two quarters of the year. In September, as in August, the dollar value of total retail sales rose considerably. Industrial production continued to expand while nonfarm payroll employment changed little. The unemployment rate edged up from 5.9 to 6.0 per cent. Average producer prices of finished goods rose substantially in September, as prices of foods increased sharply after having declined for 2 months. The advance in the index of average hourly earnings has been somewhat faster so far in 1978 than it was on the average during 1977. The trade-weighted value of the dollar against major foreign currencies has declined further since mid-September in frequently volatile exchange markets. The U.S. trade deficit fell sharply in August, reversing the jump recorded in July; for the 2 months the deficit was close to the rate for the second quarter. Growth in M-l, which had been rapid in August, accelerated in September. Inflows of the interest-bearing deposits included in M-2 and M-3 remained strong, and expansion in the broader aggregates also accelerated somewhat. Short-term market interest rates have risen further in recent weeks; long-term rates also have increased, but they remain below their July peaks. An increase in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

956 Federal Reserve Bulletin • December 1978 Federal Reserve discount rates from 73A to 8 per cent was announced on September 22; another increase to 8^2 per cent was announced on October 13. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster monetary and financial conditions that will resist inflationary pressures while encouraging continued moderate economic expansion and contributing to a sustainable pattern of international transactions. In setting ranges for the monetary aggregates, the Committee recognized the uncertainties concerning the effects that the November 1 introduction of the automatic transfer service (ATS) would have on measures of the money supply, especially M-l. Against that background, the Committee agreed that appropriate monetary and financial conditions would be furthered by growth of M-2 and M-3 from the third quarter of 1978 to the third quarter of 1979 within ranges of 6V2 to 9 per cent and IV2 to 10 per cent, respectively. The narrowly defined money supply (M-l) was expected to grow within a range of 2 to 6 per cent over the period, depending in part on the speed and extent of transfers from demand to savings deposits resulting from the introduction of ATS. The associated range for bank credit is 8V2 to 11per cent. Growth of M-1+ (M-l plus savings deposits at commercial banks and NOW accounts) in a range of 5 to IV2 per cent was thought to be generally consistent with the ranges of growth for the foregoing aggregates. 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 and to uncertainties associated with the introduction of ATS. Early in the period before 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 83A to 9lA per cent. In deciding on the specific objective for the Federal funds rate the Manager shall be guided mainly by a range of tolerance for growth in M-2 over the October-November period of 5 V2 to 9V2 per cent, provided that growth of M-l over that period does not exceed an annual rate of 6V2 per cent. Votes for this action: Messrs. Miller, Volcker, Baughman, Coldwell, Eastburn, Jackson, Partee, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 957 Wallich, and Winn. Votes against this action: Mrs. Teeters and Mr. Willes. Absent and not voting: Mr. Gardner. Mrs. Teeters dissented from this action because she believed that for the time being operations should be directed toward maintaining the money market conditions currently prevailing. In her view, the Committee should wait to evaluate the effects of the substantial increases in interest rates over recent months before contemplating additional firming in money market conditions. Mr. Willes dissented from this action because he believed that it allowed for unacceptably rapid monetary growth. He preferred an upper limit of 5 per cent for growth of M-l over the October-November period; with respect to the Federal funds rate, he favored raising the objective to 9 lA per cent during the inter-meeting period, barring unforeseen weakness in monetary growth, and providing leeway to raise the objective to 9l/2 per cent if the monetary aggregates appeared to be growing more rapidly than expected. Subsequent to the meeting, on October 31, the Committee voted to approve a delegation of authority to Chairman Miller to take certain actions in implementation of a broad Government program to strengthen the dollar in foreign exchange markets and thereby to counter continuing domestic inflationary pressures, if he determined that the arrangements with the U.S. Treasury and with certain foreign monetary authorities were substantially as contemplated in a consultation among the members of the Committee on the preceding day. Early on the morning of November 1 the Treasury and the Federal Reserve announced measures being taken to implement such a program. Specifically, the Board of Governors approved (1) an increase of 1 percentage point, from 8*/2 to 9Vi per cent, in the discount rate at the Federal Reserve Bank of New York, effective immediately, and (2) establishment of a supplementary reserve requirement, in addition to the existing reserve requirements on deposits at member banks, equal to 2 per cent of time deposits in denominations of $100,000 or more. At the same time the System announced increases in its reciprocal currency (swap) arrangements with the central banks of Germany, Japan, and Switzerland by a total of $7.6 billion, to $15 billion, and activation of the swap Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

958 Federal Reserve Bulletin • December 1978 arrangement with the Bank of Japan. It further stated that the foreign currencies available under the expanded arrangements would be used along with foreign currencies available to the Treasury in a program of forceful intervention in the exchange markets in coordination with foreign central banks to correct recent excessive movements in exchange rates. In a joint Treasury-Federal Reserve statement, other measures to mobilize key foreign currencies were announced. They included drawings on the U.S. reserve tranche in the International Monetary Fund, for part of which activation of the General Arrangements to Borrow was contemplated; sales of special drawing rights; and issuance of U.S. Treasury securities denominated in foreign currencies. It was also announced that the Treasury would increase its sales of gold to at least IV2 million ounces monthly beginning in December. As part of this program, on October 31 the Federal Open Market Committee voted to approve a delegation of authority to Chairman Miller to modify the domestic policy directive by raising the range for the Federal funds rate to 916 to 93A per cent and by instructing the Manager, in deciding on the specific objective for the rate within that range, to be guided by developing conditions in domestic and international financial markets. The Chairman approved the modification of the directive on November 1, effective on that date. Votes for this action: Messrs. Miller, Volcker, Baughman, Coldwell, Eastburn, Partee, Mrs. Teeters, Messrs. Wallich, Willes, and Winn. Votes against this action: None. Absent and not voting: Messrs. Gardner and Jackson. 2. Authorization for Foreign Currency Operations On October 31 the Committee also voted to approve a delegation of authority to Chairman Miller to negotiate increases in the System's swap arrangements with the German Federal Bank, the Bank of Japan, and the Swiss National Bank. In addition, the Committee voted to approve a concurrent amendment to paragraph 2 of the authorization for foreign currency operations to raise correspondingly the amounts specified there for the swap arrangements with those central banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 959 On November 1 the Chairman approved increases of $2 billion, $3 billion, and $2.6 billion in the System's swap arrangements with the German Federal Bank, the Bank of Japan, and the Swiss National Bank, respectively. Accordingly paragraph 2 of the authorization was amended, effective on that date, to read as follows: The Federal Open Market Committee directs the Federal Reserve Bank of New York to maintain reciprocal currency arrangements ("swap" arrangements) for the System Open Market Account for periods up to a maximum of 12 months with the following foreign banks, which are among those designated by the Board of Governors of the Federal Reserve System under Section 214.5 of Regulation N, Relations with Foreign Banks and Bankers, and with the approval of the Committee to renew such arrangements on maturity: Foreign bank Amount of arrangement (millions of dollars equivalent) Austrian National Bank 250 National Bank of Belgium 1,000 Bank of Canada 2,000 National Bank of Denmark 250 Bank of England 3,000 Bank of France 2,000 German Federal Bank 6,000 Bank of Italy 3,000 Bank of Japan 5,000 Bank of Mexico 360 Netherlands Bank 500 Bank of Norway 250 Bank of Sweden 300 Swiss National Bank 4,000 Bank for International Settlements: Dollars against Swiss francs 600 Dollars against authorized European currencies other than Swiss francs 1,250 Votes for this action: Messrs. Miller, Volcker, Baughman, Cold well, Eastburn, Partee, Mrs. Teeters, Messrs. Wallich, Willes, and Winn. Votes against this action: None. Absent and not voting: Messrs. Gardner and Jackson. Paragraph ID of the Committee's authorization for foreign currency operations authorizes the Federal Reserve Bank of New York, for the System Open Market Account, to maintain an over-all open position in all foreign currencies not to exceed $1.0 billion, unless Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

960 Federal Reserve Bulletin • December 1978 a larger position is expressly authorized by the Committee. On June 20, 1978, the Committee had authorized an over-all open position of $1.5 billion. On October 27, 1978, the Committee authorized an increase in this limit to $2 billion in view of the scale of recent and potential Federal Reserve operations in the foreign exchange markets undertaken pursuant to the Committee's foreign currency directive. Votes for this action: Messrs. Miller, Volcker, Baughman, Coldwell, Eastburn, Partee, Mrs. Teeters, Messrs. Wallich, Willes, and Winn. Votes against this action: None. Absent and not voting: Messrs. Gardner and Jackson. On October 31 the Committee voted to approve a delegation of authority to Chairman Miller to authorize an open position of $5 billion. On November 1 the Chairman authorized an open position of that amount. Votes for this action: Messrs. Miller, Volcker, Baughman, Coldwell, Eastburn, Partee, Mrs. Teeters, Messrs. Wallich, Willes, and Winn. Votes against this action: None. Absent and not voting: Messrs. Gardner and Jackson. 3. Authorization for Domestic Open Market Operations On November 3, 1978, Committee members voted to increase from $3 billion to $5 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 November 21, 1978. Votes for this action: Messrs. Miller, Volcker, Baughman, Coldwell, Eastburn, Partee, Mrs. Teeters, Messrs. Wallich, Willes, and Winn. Votes against this action: None. Absent and not voting: Messrs. Gardner and Jackson. This action was taken on recommendation of the System Account Manager. The Manager had advised that large-scale sales of Treas- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 961 ury securities since the October meeting—required mainly to counter the effect on member bank reserves of a steep decline in Treasury balances at the Federal Reserve Banks and to accommodate substantial purchases of Treasury bills by foreign central banks—had reduced the leeway for further sales to $365 million. It now appeared likely that additional sales would be required as current projections indicated a need for further reserve-absorbing operations over the coming weeks. 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 RESERVES OF MEMBER BANKS (b) Time deposits of $100,000 or more represented by promissory notes, acknowledgements of The Board of Governors has amended its Reguadvance, due bills, or similar obligations as prolation D to modify the reserve balances that memvided in § 204.1(f); and ber banks are required to maintain against their (c) Time deposits represented by ineligible deposits. bankers' acceptances or obligations issued by a Effective as to the reserves required to be held member bank's affiliate, as provided in § 204.1(f). during the week commencing November 16, 1978, However, the supplementary 2 per cent reserve against deposits outstanding in the week beginning requirement shall not apply to a savings deposit, November 2, 1978, § 204.5 of Regulation D is or a time deposit, open account that constitutes amended to read as follows: deposits of individuals, such as Christmas club accounts and vacation club accounts, that are made SECTION 204.5—RESERVE REQUIREMENTS under written contracts providing that no withdrawal shall be made until a certain number of (a) RESERVE PERCENTAGE. Pursuant to the periodic deposits have been made during a period provisions of Section 19 of the Federal Reserve of not less than 3 months. Act and § 204.2(a) and subject to paragraph (c) of this section, the Board of Governors of the Federal Reserve System hereby prescribes the following reserve balances that each member bank of the Federal Reserve System is required to (2) If in a reserve city (except as to any bank maintain on deposit with the Federal Reserve Bank located in such a city that is permitted by the Board of its district. of Governors of the Federal Reserve System, pur- (1) If not in a reserve city— suant to § 204.2(a)(2), to maintain the reserves specified in paragraph (a)(1) of this section)— (ii) 1 per cent of its time deposits outstanding on or issued after October 16, 1975, that have (ii) 1 per cent of its time deposits outstanding an initial maturity of 4 years or more; 2Vi per on or issued after October 16, 1975, that have cent of its time deposits outstanding on or issued an initial maturity of 4 years or more; 2Vi per after December 25, 1975, that have an initial cent of its time deposits outstanding on or issued maturity of 180 days or more but less than 4 years; after December 25, 1975, that have an initial 3 per cent of its time deposits up to $5 million, maturity of 180 days or more but less than 4 years; outstanding on or issued after October 16, 1975, 3 per cent of its time deposits up to $5 million, that have an initial maturity of less than 180 days, outstanding on or issued after October 16, 1975, plus 6 per cent of such deposits in excess of $5 that have an initial maturity of less than 180 days, million: Provided, however, That in no event shall plus 6 per cent of such deposits in excess of $5 the reserves required on its aggregate amount of million: Provided, however, That in no event shall time and savings deposits be less than 3 per cent. the reserves required on its aggregate amount of In addition, a member bank shall maintain a re- time and savings deposits be less than 3 per cent. serve balance equal to 2 per cent of its time In addition, a member bank shall maintain a redeposits of the following types: serve balance equal to 2 per cent of its time (a) Time deposits of $100,000 or more; and deposits of the following types: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 963 (a) Time deposits of $100,000 or more; and In this connection, the language "compliance (b) Time deposits of $100,000 or more repre- with the requirements of Regulation E is not necsented by promissory notes, acknowledgements of essary; but" in 12 C.F.R. § 201.108(d) has been advance, due bills, or similar obligations as pro- deleted. vided in § 204.1(f); and (c) Time deposits represented by ineligible bankers' acceptances or obligations issued by a member bank's affiliate, as provided in § 204.1(f). CORPORATIONS ENGAGED IN However, the supplementary 2 per cent reserve FOREIGN BANKING AND FINANCING requirement shall not apply to a savings deposit, UNDER THE FEDERAL RESERVE ACT or a time deposit, open account that constitutes The Board of Governors has amended its Regudeposits of individuals, such as Christmas club lation K to remove the 10 per cent minimum accounts and vacation club accounts, that are made reserve requirement in the Board's regulation to under written contracts providing that no withconform to the international Banking Act. drawal shall be made until a certain number of periodic deposits have been made during a period Effective November 16, 1978, the last sentence of not less than 3 months. of Section 211.7(c) of Regulation K is amended to read as follows: SECTION 211.7— LIMITED OPERATIONS IN THE UNITED STATES PURCHASE OF WARRANTS * * * ** Effective November 9, 1978, the Board of Gov- (c) . . . Such deposits shall be subject to Parts ernors has rescinded its Regulation E, Purchase 204 (Regulation D) and 217 (Regulation Q) of this of Warrants, which governs the purchase by Fed- chapter and shall be reported in the same manner eral Reserve Banks of certain short-term obliga- as if the Corporation were a member bank of the tions of State or local governments. Federal Reserve System. BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS ORDERS UNDER SECTION 3 has no significance except as a means to facilitate OF BANK HOLDING COMPANY ACT the transaction. Accordingly, the proposed acquisition of shares of the purchasing bank is treated Alabama Bancorporation, in this Order as a proposed acquisition of the Birmingham, Alabama shares of Bank. Notice of the application, affording opportunity Order Approving Acquisition of Bank for interested persons to submit comments and views, has been given in accordance with section Alabama Bancorporation, Birmingham, Ala- 3(b) of the Act. The time for filing comments and bama, a bank holding company within the meaning views has expired, and the Board has considered of the Bank Holding Company Act, has applied the application and all comments received in light for the Board's approval under section 3(a)(3) of of the factors set forth in section 3(c) of the Act the Act (12 U.S.C. § 1842(a)(3)) to acquire all (12 U.S.C. § 1842(c)). of the voting shares (less directors' qualifying Applicant, the largest banking organization in shares) of Lee County Bank, which will purchase Alabama, controls 15 banks with aggregate desubstantially all the assets and assume substantially posits of $1.7 billion.1 Its acquisition of Bank, all the liabilities of The Bank of East Alabama ("Bank"), Opelika, Alabama. The purchasing bank will operate under the name of Bank and 1 All banking data are as of December 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

964 Federal Reserve Bulletin • December 1978 which holds deposits of $34.3 million, would verse competitive effects that might be associated increase Applicant's share of commercial bank with the proposal. Accordingly, it is the Board's deposits in the State by only 0.3 per cent, and judgment that the proposed acquisition is consistwould have no appreciable effect upon the con- ent with the public interest and that the application centration of banking resources in Alabama. should be approved. Bank is the largest of eight banking organi- On the basis of the record, the application is zations located in the relevant banking market2 approved for the reasons summarized above. The and holds approximately 21.6 per cent of total transaction shall not be made before the thirtieth deposits in commercial banks in the market. Ap- calendar day following the effective date of this plicant's closest subsidiary bank is located 62 Order or later than three months after the effective miles southwest of Bank, in a separate banking date of this Order unless such period is extended market. It appears that no meaningful competition for good cause by the Board or by the Federal exists between Bank and any subsidiary bank of Reserve Bank of Atlanta pursuant to delegated Applicant, and it appears unlikely that any signifi- authority. cant competition would develop between them in By order of the Board of Governors, effective the future.3 Although Applicant is acquiring the November 3, 1978. largest bank in the market, three other large bank holding companies are already represented in the Voting for this action: Chairman Miller and Governors Wallich, Cold well, Partee, and Teeters. Absent and market and, after acquisition, there will remain not voting: Governors Gardner and Jackson. in the market four independent banks that constitute potential entry vehicles. Based on these and (Signed) GRIFFITH L. GARWOOD, other facts of record, it is the Board's opinion that [SEAL] Deputy Secretary of the Board. consummation of the proposed transaction would have no significant adverse effect on competition or on the concentration of banking resources in First Arkansas Bankstock Corporation, any relevant area. Thus, competitive consid- Little Rock, Arkansas erations are consistent with approval of the appli- Order Approving Retention of Bank cation. The financial and managerial resources of Ap- First Arkansas Bankstock Corporation, Little plicant and its subsidiary banks are regarded as Rock, Arkansas, a bank holding company within satisfactory and the future prospects of each appear the meaning of the Bank Holding Company Act, favorable. As a subsidiary of Applicant, the fi- has applied for the Board's approval under section nancial condition of Bank is expected to improve, 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to especially in light of Applicant's commitment to retain indirectly approximately 91 per cent of the inject additional capital into Bank. The managerial voting shares of First National Bank in Mena resources and future prospects of Bank will simi- ("Bank"), Mena, Arkansas. These shares are held larly be strengthened to an important degree as by United Banks of Arkansas, Inc. ("United") a result of the transaction. Banking factors, there- Little Rock, Arkansas, a duly registered one-bank fore, lend weight toward approval. holding company^ which is in turn controlled by Applicant proposes to expand lending services directors and officers of Applicant.1 at Bank, to offer VA-guaranteed and FHA-insured Notice of the application, affording opportunity real estate loans, and to make available trust serv- for interested persons to submit comments and ices to Bank's customers. Therefore, consid- views, has been given in accordance with section erations relating to the convenience and needs of the community to be served lend some weight 1 Upon approval of this application, the outstanding shares toward approval, sufficient to outweigh any ad- of United would be held in trust for the benefit of Applicant and its shareholders, and the acquisition debt and accumulated interest of $2.4 million would be assumed by United. This 2 The relevant banking market is approximated by Lee structure reflects an opinion of the Arkansas State Bank County, Alabama. Department that under State law Applicant may not hold the 3 Although Applicant's mortgage subsidiary, Engle Mort- shares of Bank directly, but they may lawfully be held in trust gage Company, Montgomery, Alabama, derives some business for Applicant's benefit. This proposal involves a restructuring from the relevant market, it is primarily engaged there in of the existing trust relationship, but the proposed transaction servicing mortgage loans, and it appears that consummation would not appear to alter materially the nature of the legal of this proposal would eliminate no significant competition relationship between Applicant and Bank upon which the State between that subsidiary and Bank. legal opinion is based. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 965 3 of the Act (43 Fed. Reg. 19,079 (1978)). The financial and managerial resources factors in § 3(c) time for filing comments and views has expired, of the Act." The Board has done this. In accordand the Board has considered the application and ance with its policy on violations of the Act and all comments received, including those of the upon its examination of all the facts of record, Comptroller of the Currency and protestants,2 in the Board is of the view that the specific facts light of the factors specified in section 3(c) of the involved in the original indirect acquisition, even Act (12 U.S.C. § 1842(c)). viewed in isolation and absent other adverse con- Applicant seeks the Board's permission to retain siderations, might require denial of the application indirectly, through United, shares of Bank con- but for Applicant's thorough and definite undertrolled by directors and officers of Applicant, pur- takings to guard against violations in the future.4 suant to arrangements made in late 1970 and early Applicant, the largest bank holding company in 1971. Under these arrangements, Bank's shares Arkansas, controls four banks (including Bank), were acquired on Applicant's behalf and held by holding total deposits of $540.5 million, or ap- United. To explore the circumstances surrounding proximately 7.8 per cent of the total deposits in this transaction, the Board held formal evidentiary commercial banks in the State.5 Bank's deposits hearings in October, 1976. Those hearings estab- of $27.0 million comprise only 0.4 per cent of lished that the transactions involving the indirect total deposits in commercial banks in Arkansas, acquisition of more than 25 per cent of Bank's and retention of Bank would have no appreciable shares by Applicant's officers and directors, with- effect upon the concentration of banking resources out prior Board approval, constituted a violation in the State. Bank is the slightly larger of two of section 3 of the Act.3 banks in the relevant market,6 with 50.3 per cent On March 13, 1978, the Board issued an Order of the deposits in commercial banks in that market. adopting the findings and conclusions in the Rec- None of Applicant's subsidiary banks competes in ommended Decision of the Administrative Law the relevant banking market, and the nearest sub- Judge, who presided at the hearings, and stating sidiary bank of Applicant is located approximately that "it would be appropriate to process [Appli- 77 miles east of Bank. Viewing the competitive cant's] application to retain its interest in Bank situation both as it existed when Applicant oband, in the context of that application, to review tained control of Bank and at this time, it appears the circumstances surrounding [Applicant's] ac- that the acquisition did not eliminate and, viewed quisition of control of Bank as they relate to the as a present acquisition, would not eliminate, any existing banking competition in the relevant mar- 2 The protestants to this application include 42 Arkansas ket. banking institutions joining in a single protest, and represented While Applicant could have established a de by Mr. Ray Smith ("the Smith protest"), and 4 Arkansas banking institutions that have each filed protests separately. novo bank in the relevant market at the time of Since the Smith protest includes all the issues the individual affiliation of Applicant and Bank, the market did protestants raise and some that they do not, including the need not appear attractive for de novo entry at that time, for a hearing, this Order addresses the protested issues by referring to the Smith protest. and the situation does not appear to have changed 3 These are the material facts: Applicant began negotiations in the intervening years. Moreover, a 1971 change to acquire Bank in the fall of 1970, and decided that United, a shell corporation controlled by officers and directors of in Arkansas law prohibiting the additional acqui- Applicant, should acquire Bank's shares and hold them for sition of banks by a bank holding company would subsequent sale to Applicant after Applicant had filed an application with the Board and received the Board's approval, pursuant to section 3(a)(3) of the Act, to acquire Bank. United 4 The record reflects that before initiating this transaction had originally been established for the purpose of reserving Applicant had reason to believe it to be lawful, and that the name of "United Banks of Arkansas" for Applicant's use. Applicant openly disclosed the principal aspects of its relation- The officers and directors of Applicant who held Bank's shares ship with Bank to the Board and other regulatory authorities through United regarded themselves as acting at all times on and has cooperated fully with efforts by the Board's staff to behalf of Applicant and not for their personal account, and resolve the violation question. Applicant's cooperation, the it was informally expected that Applicant would stand behind nature of the violation, and the fact that the transaction origitheir acquisition debt to an unaffiliated bank if necessary. nated before the Board publicized its policy on such transac- Applicant, since the acquisition of Bank by United, has treated tions, coupled with Applicant's undertaking a definite program Bank as an affiliate and has had a major role in the operations regarding its future conduct, together persuade the Board that of Bank, providing management and investment services and the violation does not reflect so adversely on Applicant's reviewing Bank's examination reports and loan portfolio, as management as to require denial of this application, though well as providing data processing services. The original plan no one of those considerations standing alone might be persuato transfer the shares to Applicant was prevented by enactment sive. of a State law prohibiting the acquisition of additional banks 5 All banking data are as of December 31, 1977. by existing holding companies. 6 The relevant market is approximated by Polk County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

966 Federal Reserve Bulletin • December 1978 prevent Applicant from entering the relevant mar- by what means Applicant gained control or exerket by any means if disaffiliation were now re- cised a controlling influence over Bank.9 The quired. Accordingly, retention of Bank would not hearings not only fully exposed the substance of have a significant effect upon competition, nor the transaction, but also the motives and reasons would it increase the concentration of resources for Applicant's actions. A voluminous record was in any relevant area. Therefore, the Board con- developed on these issues, and there seem to be cludes that competitive considerations are consist- no unexplored material factual questions relating ent with approval of the application. to that matter remaining. Certainly, the Smith The financial and managerial resources of Ap- protest has identified none. In fact, rather than plicant and its subsidiaries, as well as those of identifying sections of the record that need to be Bank, are consistent with approval, and their fu- supplemented, it instead quotes extensively from ture prospects appear favorable. the record, including the transcript of the hearings, In this connection, the Smith protest raises sev- the hearing exhibits, the proposed finding of facts eral questions regarding the managerial resources by Board Counsel and the Recommended Decision of Applicant. Specifically, it urges the Board to of the Administrative Law Judge, in arguing that deny this application because of Applicant's vio- the application should be denied.10 Under the lation of the Act in acquiring control of Bank and circumstances, the Board is satisfied that the record certain other actions evidencing Applicant's regarding Applicant's violation of the Act is suffi- "continuous corporate misbehavior." The Smith cient for a proper evaluation of that violation, and protest has requested that a formal hearing be held supports the determination made earlier in this in connection with these issues. The Board has Order that the violation does not reflect so addetermined that the matters raised do not justify versely on Applicant's managerial resources as to further hearings or denial of this application. require denial of this application. Section 3(b) of the Act requires the Board to In addition to its opposition based on Applihold a formal hearing when the primary supervisor cant's violation, the Smith protest requests a hearof the bank to be acquired, in this case the Comp- ing to submit proof of Applicant's "continuous troller of the Currency, recommends disapproval corporate misbehavior over the last ten years." of the application (12 U.S.C. § 1842(b)). Since The charges regarding which the Smith protest the Comptroller of the Currency has not recom- requests an opportunity to present evidence relate mended disapproval of the application,7 there is principally to actions taken by Applicant's lead no statutory requirement that the Board hold a bank, and accordingly are matters subject to the formal hearing in this matter.8 primary supervisory authority of the Comptroller While there is no statutory requirement that a of the Currency. In his comments to the Board hearing be held on this application, the Board has on this application, the Deputy Comptroller of the nevertheless carefully reviewed the Smith protest. Currency did not criticize any of these matters With respect to the issue that Applicant should raised by the Smith protest or the lead bank's not be allowed to retain a bank that it acquired general conduct. To the contrary, he expressed the in violation of law, the Smith protest states that opinion that, apart from consideration of Applithe record on this issue "does not appear to be cant's violation of the Act, which is addressed in complete nor sufficient for the Board to make a this Order, Applicant's managerial resources were determination and additional evidence needs to be generally satisfactory. In the Board's view the developed to make an adequate record." central relevant question bearing on Applicant's In October 1976, the protestants, represented by managerial integrity in this case is its violation Mr. Smith, participated as parties in four days of of the Act. The Board believes that the remaining evidentiary hearings held to decide the basic fac- 9 These hearings, along with the briefs, exhibits, findings, tual issues of whether, at what point in time, and and Recommended Decision of the Administrative Law Judge, constitute part of the record considered by the Board in connection with this application. 7 The Comptroller of the Currency indicated, however, that 10 It should be further noted that the protestants' counsel, if the Board determined that Applicant had willfully violated in response to a question from Board Counsel near the concluthe Act, that Office would regard such a determination as a sion of the hearings, agreed that the protestants were satisfied sufficient basis for the Board to deny the application. with Applicant's voluntary cooperation in that proceeding in 8 See, Farmers and Merchants Bank of Los Cruces v. Board producing needed witnesses and documents regarding the acof Governors of the Federal Reserve System, 567 F.2d 1082, quisition of Bank. Transcript of hearing on October 28, 1976, 1087 (D.C. Cir. 1977). at 680. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 967 charges, even if proved, would by their number of this Order, unless such period is extended for and nature show at most isolated instances of good cause by the Board, or by the Federal Renoncompliance rather than any coherent pattern of serve Bank of St. Louis pursuant to delegated disregard for or neglect of the lead bank's respon- authority. sibilities as a regulated institution. Taking into By order of the Board of Governors, effective account the judgment of the bank's primary November 3, 1978. supervisor, the Board believes that such proof Voting for this action: Chairman Miller and Goverwould not alter its judgment on Applicant's mananors Wallich, Coldwell, Partee, and Teeters. Absent and gerial resources in a way material to the outcome not voting: Governors Gardner and Jackson. .of this case. Even accepting each of these charges as true, the Board finds that the substantial public (Signed) THEODORE E. ALLISON, benefits associated with this application are more [SEAL] Secretary of the Board. than sufficient to outweigh any adverse finding on these matters. First Bancorp of N.H., Inc., In summary, the Board has reviewed the record Manchester, New Hampshire of this application, including the views expressed in the written submissions of the Smith protest and Order Approving Acquisition of Bank Applicant's response to those submissions, and concludes that the record is sufficiently complete First Bancorp of N.H., Inc., Manchester, New to render a decision on the application and that Hampshire, a bank holding company within the no useful purpose would be served by holding meaning of the Bank Holding Company Act further formal hearings on any issue raised. Ac- ("Act"), has applied for the Board's approval cordingly, the Smith protest's request for a hearing under section 3(a)(3) of the Act (12 U.S.C. is denied. § 1842(a)(3)) to acquire 45.8 per cent or more of the voting shares of Londonderry Bank and Trust Considerations relating to convenience and Company, Londonderry, New Hampshire needs of the community being served favor ap- ("Bank"). Since Applicant currently owns 4.9 per proval of the application. As a result of its affiliacent of the voting shares of Bank, upon consumtion with Applicant, Bank has offered a number mation of the proposal Applicant would own 50.1 of services that it would not have been able to per cent or more of the voting shares. offer absent that affiliation. Specifically, as a subsidiary of Applicant, Bank has introduced FHA, Notice of the application, affording opportunity VA, home improvement and student loans, Visa for interested persons to submit comments and and Master Charge services, additional types of views, has been given in accordance with section checking account services, and 24-hour banking 3(b) of the Act. The time for filing comments and services through Bank's participation in Appli- views has expired, and the application and all cant's debit card program. Furthermore, affiliation comments received, including those submitted by with Applicant has allowed Bank, through overline Bank's management ("Protestants"), have been loan participations, to increase substantially its considered in light of the factors set forth in section ability to serve the borrowing needs of its com- 3(c) of the Act. mercial customers. Also, such affiliation has re- Applicant, the second largest banking organisulted in increased benefits for its own employees. zation in New Hampshire, controls four banks with It appears that disaffiliation would result in a aggregate deposits of approximately $214 million, reduction in the level of services by Bank as an representing 10.9 per cent of the total deposits in independent organization. The Board finds that commercial banks in New Hampshire.1 Acquisiapproval of the proposed application would be in tion of Bank, the fifty-third largest banking orgathe public interest and that the application should nization in the State with deposits of $7.5 million, be approved. would increase Applicant's share of commercial On the basis of the record, the application is approved for the reasons summarized above. The 1 All banking data relating to the State of New Hampshire are as of December 31, 1977. All banking data relating to proposed restructuring of Applicant's interest in the Manchester banking market are as of June 30, 1977. The Bank shall not be made before the thirtieth calen- figures do not reflect the Board's approval by Order of Sepdar day following the effective date of this Order tember 15, 1978, of Applicant's application to acquire Wolfeboro National Bank, Wolfeboro, New Hampshire, since that or later than three months after the effective date acquisition has not been consummated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

968 Federal Reserve Bulletin • December 1978 bank deposits in New Hampshire by less than only slightly adverse. Moreover, while the Manone-half of 1 per cent, and would not alter Appli- chester banking market is somewhat concentrated, cant's State-wide ranking. in view of the facts presented in the record of this Protestants contend and the Board concurs that application, the Board does not regard the slight Bank and Applicant's subsidiary bank in Man- increase in concentration of market deposits assochester, New Hampshire, The Merchants National ciated with this proposal as being significant.3 Bank of Manchester ("Merchants Bank"), as well Accordingly, the Board concludes that the proas its subsidiary Exeter Banking Company, Exeter, posed acquisition of Bank by Applicant would New Hampshire, compete in the Manchester have only slightly adverse effects on competition. banking market.2 In the Manchester banking Moreover, when viewed in light of the other market, Bank is the seventh largest of 11 com- considerations reflected in the record discussed mercial banking organizations, and controls 1.6 below, the Board does not view the effects on per cent of deposits in commercial banks in the competition as being so serious as to require denial market. Applicant, with its two subsidiaries in the of this proposal. market, controls deposits of $72.5 million, repre- The financial and managerial resources of Apsenting 19.1 per cent of market deposits, and ranks plicant and its subsidiaries are regarded as satisas the second largest commercial banking organi- factory, and their future prospects appear favorzation in the relevant banking market. In addition able. While Applicant intends to finance the acto its principal banking office, Merchants Bank has quisition with proceeds from a private placement three branches located in the Manchester banking of notes, it appears from the record that Applicant market. has sufficient financial resources to enable it to Protestants allege that the proposed transaction service the debt while maintaining sufficient flexiwould have "serious adverse" effects on compe- bility to meet any unanticipated difficulties.4 As tition in the Manchester banking market and a result of consummation of this proposal, Bank's southern New Hampshire. Protestants base their financial and managerial resources and future conclusion concerning the competitive effects prospects will be strengthened, particularly in light upon the assertion that Bank competes effectively of Applicant's commitment to inject needed capital and vigorously with Merchants Bank, as evidenced into Bank. Protestants state that if the application by direct competition for commercial loans, for is approved, a significant number of Bank's direcmunicipal deposits and for the purchase of tax tors and officers, including its President, have anticipation notes between Bank and Applicant's expressed their intention to resign their positions subsidiary. In addition, Protestants believe that 3 In this connection the Board notes that three of New Bank should be regarded as a "full service bank" Hampshire's four largest savings banks operate in the Manand therefore an effective competitor for so-called chester banking market, that together they hold almost twice "retail banking" (i.e., loans and deposit accounts the amount of market deposits held by all 11 commercial banks in the market, and that each one holds more deposits than by individuals and small businesses.) The Board any one of the commercial banking organizations in the market. has examined the submissions of Protestants, and While the Board continues to view commercial banking as a distinct line of commerce, the Board recognizes that the presbased on all the facts of record, concludes that ence of thrift institutions in the relevant banking market, while consummation of this proposal would elimi- particularly in New England where thrift institutions have nate some existing competition inasmuch as Ap- certain expanded lending and deposit-taking powers, is one of the factors that may be taken into account in analyzing the plicant and Bank operate in the Manchester bankcompetitive effects of a particular acquisition. See, e.g., ing market, in view of the nature of the market, Board's Order approving the merger of Northeast Bancorp, as well as Bank's small size and its limited finan- New Haven, Connecticut, with First Connecticut Bancorp, Hartford, Connecticut, 60 FEDERAL RESERVE BULLETIN 375 cial and managerial resources, the Board regards (1974). In the instant case, the presence of thrift institutions the effects of the proposal on competition as being holding significant amounts of deposits in the Manchester banking market, in the Board's view, lessens the severity of the effects of the proposed transaction on competition in that 2 The Manchester banking market, the relevant banking market. market for the purposes of evaluating the proposed transaction, 4 Protestants contend that Applicant's financial projections is approximated by the Manchester, New Hampshire Ranally are erroneous, and consequently, that the acquisition debt to Metro Area, and six contiguous towns. The Board notes that be incurred by Applicant in connection with the proposed the Manchester banking market is located adjacent to the acquisition would be unduly burdensome to Applicant. Protes- Nashua, New Hampshire, and Boston, Massachusetts, banking tants do not submit evidence in support of this contention, markets, and there is evidence that a significant number of and based upon its review of all the facts of record, the Board the residents of Londonderry also commute to work and shop concludes that Protestants' contention in this regard is without in those adjacent markets. merit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 969 with Bank, and thereby to cause a depletion of of the community. Thus, considerations relating Bank's deposits. While Applicant has indicated its to the convenience and needs of the community intention to ask all of Bank's present directors and to be served lend weight toward approval of the officers to remain, Applicant is prepared, and in application, and together with considerations rethe Board's view, able to provide satisfactory lating to banking factors, are sufficient to outweigh successor management if the need arises. Further- the slightly adverse effects on competition that more, the Board notes that the overall operations would result from consummation of the proposal. of Bank have declined somewhat in recent years Accordingly, it is the Board's judgment that the under Bank's present management, and therefore proposed acquisition would be in the public interthe Board regards the availability to Bank of est, and that the application should be approved. Applicant's managerial resources as a positive On the basis of the record, the application is factor. With respect to the anticipated depletion approved for the reasons summarized above. The of Bank's deposits as a result of resignations, transaction shall not be made (a) before the thir- Applicant is prepared to minimize the effects of tieth calendar day following the effective date of such depletion by transferring certain deposits this Order or (b) later than three months after the from its subsidiary banks to Bank. Based on the effective date of this Order, unless such period foregoing and other facts of record, the Board is extended for good cause by the Board, or by concludes that considerations relating to banking the Federal Reserve Bank of Boston pursuant to factors lend weight toward approval of the appli- delegated authority. cation. By order of the Board of Governors, effective Upon consummation of the proposed transac- November 2, 1978. tion, Applicant intends to assist Bank in expanding Voting for this action: Chairman Miller and Goverthe range of services provided to its individual nors Wallich, Coldwell, Jackson, Partee, and Teeters. customers. In particular, Applicant will cause Absent and not voting: Governor Gardner. Bank to increase its hours of operation and to introduce personal trust services, personal credit (Signed) GRIFFITH L. GARWOOD, cards, and automated customer services. In addi- [SEAL] Deputy Secretary of the Board. tion, Applicant will cause Bank to increase the rates paid on Individual Retirement Accounts and First City Bancorporation of Texas, Inc., reduce the rate of interest charged on overdraft Houston, Texas loans. With regard to Bank's commercial custom- Order Approving Acquisition of Bank ers, Applicant intends to assist Bank in offering additional services, including corporate trust serv- First City Bancorporation of Texas, Inc., Housices, lock box, accounts receivable lending, and ton, Texas, a bank holding company within the import and export services. meaning of the Bank Holding Company Act, has Protestants believe that Bank is adequately applied for the Board's approval under section serving the needs of its customers and its commu- 3(a)(3) of the Act (12 U S C. § 1842(a)(3)) to nity and that the proposed additional services are acquire all of the voting shares (less directors' already available in the market and in some cases qualifying shares) of the successor by merger to are offered by Bank through its correspondent The Lufkin National Bank, Lufkin, Texas banks. In addition, Protestants contend that Bank ("Bank"). The bank into which Bank is to be would be better able to meet the convenience and merged has no significance except as a means to needs of its customers in the future as an inde- facilitate the acquisition of the voting shares of pendent entity. While Bank may be adequately Bank. Accordingly, the proposed acquisition of serving its community, viewed in light of other shares of the successor organization is treated considerations reflected in the record and discussed herein as the proposed acquisition of the shares above, the Board believes that affiliation with of Bank. Applicant will improve Bank's ability to continue Notice of the application, affording opportunity to serve its customers and the community in the for interested persons to submit comments and future. Furthermore, while the proposed additional views, has been given in accordance with § 3(b) services are not new to the market, in the Board's of the Act. The time for filing comments and views view, their availability to the public at an addi- has expired, and the Board has considered the tional location serves the convenience and needs application and all comments received, including Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

970 Federal Reserve Bulletin • December 1978 those of the Department of Justice, in light of the time of the Board's referenced denial action.4 factors set forth in § 3(c) of the Act (12 U.S.C. Moreover, upon consummation of this proposal § 1842(c)). there will remain entry points for bank holding Applicant, the third largest banking organization companies not represented in the market. In view in Texas, controls 29 banks with aggregate depos- of the foregoing and other facts of record, the its of approximately $4.7 billion, representing 7.8 Board concludes that the proposed acquisition per cent of total commercial bank deposits in would not have any adverse effect on existing Texas.1 Acquisition of Bank, with deposits of competition and only a slightly adverse effect on $83.1 million, would increase Applicant's share potential competition. of Statewide commercial bank deposits by less The financial and managerial resources and futhan two tenths of one per cent and would not ture prospects of Applicant, its subsidiaries and have an appreciable effect upon the concentration Bank are regarded as generally satisfactory, parof banking resources in the State. ticularly in view of Applicant's commitment to Bank is the second largest of five banking orga- provide additional equity capital to Bank. Accordnizations in the relevant banking market,2 and ingly, considerations relating to banking factors controls approximately 41.2 per cent of the total are consistent with approval of the application. deposits in commercial banks in the market. None Following consummation of the proposal, Appliof Applicant's subsidiary banks compete in the cant intends to assist Bank in providing trust relevant banking market and Applicant's nearest services to its customers, as well as specialized subsidiary banking office is located approximately lending programs. Affiliation with Applicant will 100 miles from Bank in a separate banking market. also enable Bank to offer credit life and disability From the record it appears that no significant insurance to its customers at rates less than the existing competition would be eliminated between rates currently charged by Bank. Considerations Bank and any of Applicant's subsidiary banks relating to the convenience and needs of the comupon consummation of this proposal. munity to be served lend some weight toward With respect to potential competition, the approval of the application and outweigh the Department of Justice is of the view that approval slightly adverse competitive effects that will result would remove Applicant as a means for decon- from consummation of this proposal. Accordingly, centrating the Angelina banking market.3 While it is the Board's judgment that the proposed acit appears that consummation of the proposal quisition would be in the public interest and that would have some adverse effects upon potential the application should be approved. competition, for the reasons indicated below, the On the basis of the record, the application is Board concludes that the proposal would have only approved for the reasons summarized above. The slightly adverse competitive effects. transaction shall not be made before the thirtieth Bank's position in the market has declined from calendar day following the effective date of this 49.0 per cent, at the time of the Board's denial Order or later than three months after the effective action, to 41.2 per cent, and approval would not date of this Order, unless such period is extended appear to have the same adverse effects as was for good cause by the Board or by the Federal previously expressed by the Board. With respect Reserve Bank of Dallas acting pursuant to deleto the attractiveness of the market to de novo entry, gated authority. as the Board has already indicated, the Angelina By order of the Board of Governors, effective market is not as attractive as it appeared at the November 1, 1978. Voting for this action: Chairman Miller and Gover- 1 All banking data are as of December 31, 1977, and reflect nors Cold well, Jackson, Partee, and Teeters. Absent and bank holding company acquisitions and formations approved not voting: Governor Gardner. Dissenting: Governor as of August 15, 1978. Wallich. 2 The relevant banking market is approximated by Angelina County, Texas. 3 By action of May 1, 1974, the Board denied Applicant's (Signed) JOHN M. WALLACE, proposal to acquire Bank in light of the effect such an acquisi- [SEAL] Assistant Secretary of the Board. tion would have upon potential competition at that time. Since that action, the Board has had occasion to review the banking structure of Texas (63 FEDERAL RESERVE BULLETIN 500 4 Board Order of March 23, 1976, approving the application (1977)) and to consider the attractiveness of the Angelina of Republic of Texas Corporation, Dallas, Texas, to acquire banking market for de novo entry (62 FEDERAL RESERVE First Bank & Trust, Lufkin, Texas (62 FEDERAL RESERVE BULLETIN 379 (1976)). BULLETIN 378 (1976)). 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La w Department 971 Dissenting Statement of Governor Wallich population growth of Angelina County at a rate faster than that for the State of Texas (15.5 per I would deny the application of First City Bancent as compared with 14.6 per cent for the period corporation to acquire The Lufkin National Bank 1970-1978); also, the ratio of population to bankfor those reasons set forth in the Board's original ing offices for Angelina County remains higher denial of this case as well as the reasons in my than that for the State of Texas (11,400 as against Dissenting Statements in the past Texas Commerce 9,294). Moreover, foothold entry is possible by Bancshares, Inc., First City Bancorporation of acquisition of one of the smaller banks in the Texas, Inc., DETROITBANK, and Northwest market. Finally, as in the acquisition by Republic Bancorporation decisions.1 The evidence does not of Texas Corporation of First Bank & Trust, which seem to me to support the view that the situation is also located in the Lufkin market, this acquisiat hand has changed substantially from the time tion could further solidify the position of Lufkin when the Board originally considered this pro- National Bank in the market and thereby contribute posal. I continue to view the consummation of this to the continuation of an already high degree of proposal as having adverse effects upon potential market concentration, without any countervailing competition which are not outweighed by convenpublic benefits. Accordingly, consummation of ience and needs considerations. this proposal would, in my view, eliminate a The acquisition of the Lufkin National Bank, potential entrant into the market without some the second largest bank in the relevant market, offsetting procompetitive benefits. by First City Bancorporation, the third largest In light of the above, I would deny this applicabanking organization in the State of Texas, would tion. perpetuate a pattern of acquisition whereby the five largest banking organizations in Texas acquire the leading banks in the State's secondary metro- First National Holding Corp., politan areas. Continuation of this trend increases Atlanta, Georgia the size disparity between the largest banking organizations in Texas and all other banking orga- Order Denying Acquisition of Bank nizations in the State. In addition, this pattern First National Holding Corp., Atlanta, Georgia, encourages bank holding companies to eschew de a bank holding company within the meaning of novo or foothold entry into attractive and highly the Bank Holding Company Act, has applied for concentrated markets in favor of entry by a less the Board's approval under section 3(a)(3) of the procompetitive means. While the majority has already indicated 2 that it does not consider the Act (12 U.S.C. § 1842(a)(3)) to acquire 100 per cent of the voting shares of Gwinnett Bank and Angelina market as attractive for de novo entry Trust Company, Norcross, Georgia. as it appeared at the time it first denied this case, Notice of the application, affording opportunity I disagreed with that determination 3 and continue for interested persons to submit comments and to do so, particularly in light of the continued views, has been given in accordance with section 3(b) of the Act. The time for filing comments and 1 See the Dissenting Statements accompanying the Board views has expired, and the Board has considered Orders approving the applications of Texas Commerce Banc- the application and all comments received in light shares, Inc., Houston, Texas, to merge with The Bancapital of the factors set forth in section 3(c) of the Act Financial Corporation, Austin, Texas (63 FEDERAL RESERVE BULLETIN 500 (1977)); First City Bancorporation of Texas, (12 U.S.C. § 1842(c)). Inc., Houston, Texas, to acquire City National Bank of Austin, On the basis of the record, the application is Austin, Texas (63 FEDERAL RESERVE BULLETIN 674 (1977)); denied for the reasons set forth in the Board's DETROITBANK Corporation, Detroit, Michigan, to acquire Lake Shore Financial Corporation, Muskegon, Michigan (63 Statement, which will be released at a later date. FEDERAL RESERVE BULLETIN 926 (1977)); and Northwest By order of the Board of Governors, effective Bancorporation, Minneapolis, Minnesota, to acquire First National Bank, Fort Dodge, Iowa, in Fort Dodge, Iowa (63 November 3, 1978. FEDERAL RESERVE BULLETIN 1096 (1977)). 2 Board Order of March 23, 1976, approving the application Voting for this action: Chairman Miller and Goverof Republic of Texas Corporation, Dallas, Texas, to acquire nors Wallich, Coldwell, Jackson, Partee, and Teeters. First Bank & Trust, Lufkin, Texas. Absent and not voting: Governor Gardner. 3 Dissenting Statement of Governors Holland and Wallich accompanying Board Order of March 23, 1976, approving the (Signed) JOHN M. WALLACE, application of Republic of Texas Corporation, Dallas, Texas, to acquire First Bank & Trust, Lufkin, Texas. [SEAL] Assistant Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

972 Federal Reserve Bulletin • December 1978 Statement by this proposal would eliminate some existing com- Board of Governors of the petition between Applicant's banking subsidiaries Federal Reserve System and Bank, the Board concludes that Applicant's Regarding Application of acquisition of Bank would not have significantly First National Holding Corp. to Acquire adverse competitive effects in any relevant area. Gwinnett Bank and Trust Company The financial and managerial resources of Bank are generally satisfactory, and its future prospects First National Holding Corp., Atlanta, Georgia, appear favorable. As the Board has stated on a a bank holding company within the meaning of number of occasions, however, a bank holding the Bank Holding Company Act, applied for the company should be a source of financial and man- Board's approval under section 3(a)(3) of the Act agerial strength for its subsidiaries. With respect (12 U.S.C. § 1842(a)(3)) to acquire all of the to Applicant, the Board stated in its September voting shares of Gwinnett Bank and Trust Com- 28, 1977, Order approving the acquisition by Appany ("Bank"), Norcross, Georgia. Notice of the plicant of First Bank of Savannah, Savannah, and application was given in accordance with section The First National Bank of Dalton, Dalton, that 3(b) of the Act, and the time for filing comments "Applicant should continue to strengthen [its] and views had expired. The Board considered the financial resources before it attempts to expand application and all comments received in light of through proposals involving a diversion of its the factors set forth in section 3(c) of the Act (12 existing resources." While the Board finds that U.S.C. § 1842(c)), and by Order dated November Applicant's financial condition has improved since 3, 1978, the Board denied this application for the that Order was issued, the Board believes that reasons set forth below. more substantial improvement should occur and Applicant, the third largest bank holding com- that Applicant is thus premature in submitting to pany in Georgia, controls four subsidiary banks 1 the Board a proposal for this acquisition. It is the with aggregate deposits of $1.58 billion, repre- Board's view that at the present time Applicant senting 11.0 per cent of the total deposits in should continue to direct its resources toward commercial banks in the State.2 Acquisition of strengthening the financial position of its existing Bank, with deposits of $24.4 million, would in- structure. Accordingly, the Board concludes that crease Applicant's share of deposits in commercial the banking factors of Applicant's proposal weigh banks in Georgia by less than two-tenths of one against approval of this application. per cent and would not have an appreciable effect There is no evidence to indicate that the banking upon the concentration of banking resources in the needs of the community served by Bank are not State. being met currently. Applicant proposes to expand Bank is the 27th largest bank in the Atlanta both the consumer and commercial services ofbanking market,3 with 0.38 per cent of the deposits fered through Bank, principally by introducing the in commercial banks in that market. Applicant's expanded services and automation Applicant has lead bank is the second largest banking organi- already made available through its other banking zation in the relevant market, with deposits of $1.4 subsidiaries. Consequently, convenience and billion, representing 22.3 per cent of deposits in needs considerations lend some weight toward commercial banks in that market. While Appli- approval of the application. However, they are not cant's lead bank operates 59 branches in the mar- sufficient, in the Board's judgment, to outweigh ket, none of these branches is located in the county the adverse banking factors reflected in the record. of Bank, and State law precludes intercounty Accordingly, it is the Board's judgment that conbranching and de novo entry by bank holding summation of the proposal at this time would not companies. Accordingly, while consummation of be in the public interest and that the application should be denied. 1 One of Applicant's subsidiary banks, The Bank of Dalton, Board of Governors of the Federal Reserve Dalton, Georgia (deposits of $22.7 million), must be divested in accordance with a previous Board Order. 63 FEDERAL System, effective November 8, 1978. RESERVE BULLETIN 929 (1977). 2 All banking data are as of December 31, 1977. 3 The Atlanta banking market is approximated by the coun- (Signed) JOHN M. WALLACE, ties of Fulton, De Kalb, Cobb, Gwinnett, Douglas, Henry, Clayton, and Rockdale. [SEAL] Assistant Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

La w Department 973 First Railroad & Banking Company of Georgia, of deposits. Moreover, it does not appear likely Augusta, Georgia that Bank would, at any time in the near future, develop the potential to become the lead bank of Order Approving Acquisition of Bank a regional banking organization. Accordingly, on First Railroad & Banking Company of Georgia, the basis of the size of Bank and Applicant and Augusta, Georgia, has applied for the Board's other facts of record, the Board concludes that approval under section 3(a)(3) of the Bank Holding consummation of the proposal would not have any Company Act (12 U.S.C. § 1842(a)(3)) to acquire significant adverse effects upon competition. 80 per cent of the voting shares of First Georgia The financial and managerial resources and fu- Bank ("Bank"), Atlanta, Georgia, through a con- ture prospects of Applicant and its subsidiaries are version of preferred shares of Bank that Applicant generally satisfactory, and those of Bank are conacquired in 1975 with Board consent.1 sistent with approval in view of recent improve- Notice of the application, affording opportunity ment in Bank's financial resources and the likelifor interested persons to submit comments, has hood that affiliation with Applicant will further been given in accordance with section 3(b) of the strengthen Bank's financial and managerial re- Act. The time for filing comments has expired, sources and enhance its future prospects. Thus, and the Board has considered the application and banking factors are consistent with approval of this all comments received in light of the factors set application. forth in section 3(c) of the Act (12 U.S.C. Applicant plans to introduce some new services § 1842(c)). to customers of Bank, including expanded time Applicant, the sixth largest banking organi- and savings deposit programs, as well as leasing zation in Georgia, controls one bank with aggre- and on-site trust services. In addition, affiliation gate deposits of approximately $279 million, rep- with Applicant will give Bank access to the speresenting 2 per cent of the total commercial bank cialized lending skills of the officers of Applicant's deposits in the State.2 Acquisition of Bank ($92 largest banking subsidiary. These considerations million in deposits) would increase Applicant's relating to the convenience and needs of the comshare of deposits Statewide by 0.6 per cent and munity to be served lend some weight toward would not result in a significant increase in the approval of the application and outweigh any adconcentration of banking resources in Georgia. verse competitive effects that might result from consummation of this proposal. Based upon the Bank is the eighth largest of 32 banking organiforegoing and other considerations reflected in the zations operating in the Atlanta banking market, controlling 1.4 per cent of market deposits.3 Ap- record, it is the Board's judgment that the proposed acquisition is in the public interest and that plicant's banking subsidiary is located approxithe application should be approved. mately 140 miles from Bank in a separate banking market, and no significant existing competition On the basis of the record, the application is would be eliminated between Bank and Appli- approved for the reasons summarized above. The cant's subsidiary bank by consummation of this transaction shall not be consummated before the proposal. Although Applicant's finance company thirtieth calendar day following the effective date subsidiary maintains one office in the Atlanta of this Order, or later than three months after the banking market, the amount of existing competi- effective date of this Order unless such period is tion between this subsidiary and Bank that would extended for good cause by the Board, or by the be eliminated is slight since the finance company Federal Reserve Bank of Atlanta pursuant to deleoffice has total receivables of only $700,000. Ap- gated authority. plicant proposes to enter the market through the By order of the Board of Governors, effective acquisition of a bank having a small market share November 2, 1978. 1 Absent the Board's prior consent, such an acquisition of convertible shares in some circumstances could represent an Voting for this action: Chairman Miller and Goveracquisition of voting shares within the meaning of section 3(a) nors Wallich, Coldwell, Jackson, Partee, and Teeters. of the Act without prior approval. Fulton National Corporation, Absent and not voting: Governor Gardner. 64 FEDERAL RESERVE BULLETIN 121 (1978). 2 All banking data are as of December 31, 1977. 3 The Atlanta banking market is approximated by the coun- (Signed) JOHN M. WALLACE, ties of Fulton, DeKalb, Cobb, Douglas, Gwinnett, Henry, Clayton, and Rockdale, Georgia. [SEAL] Assistant Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

974 Federal Reserve Bulletin • December 1978 Georgia Bancshares, Inc., proposal on competition are consistent with ap- Macon, Georgia proval of the application. The financial and managerial resources of Ap- Order Approving plicant, which are dependent upon those of Bank, Formation of Bank Holding Company are regarded as satisfactory, and their future pros- Georgia Bancshares, Inc., Macon, Georgia, has pects appear favorable. Accordingly, banking facapplied for the Board's approval under section tors are consistent with approval of the application. 3(a)(1) of the Bank Holding Company Act (12 Although Applicant does not propose to institute U.S.C. § 1842(a)(1)) of formation of a bank any new services in connection with its acquisition holding company by acquiring 100 per cent of the of Bank, considerations relating to the convenvoting shares of the successor by merger to The ience and needs of the community to be served Georgia Bank and Trust Company, Macon, Geor- are consistent with approval of the application. It gia ("Bank"). The company into which Bank is is the Board's judgment that the proposed transacto be merged has no significance except as a means tion would be consistent with the public interest to facilitate the acquisition of the voting shares and that the application should be approved. of Bank. Accordingly, the proposed acquisition of On the basis of the record, the application is shares of the successor organization is treated approved for the reasons summarized above. The herein as the proposed acquisition of the shares transaction shall not be made before the thirtieth of Bank. calendar day following the effective date of this Notice of the application, affording opportunity Order or later than three months after the effective for interested persons to submit comments and date of this Order, unless such period is extended views, has been given in accordance with section for good cause by the Board, or by the Federal 3(b) of the Act. The time for filing comments and Reserve Bank of Atlanta pursuant to delegated views has expired, and the Board has considered authority. the application and all comments received in light By order of the Board of Governors, effective of the factors set forth in section 3(c) of the Act November 1, 1978. (12 U.S.C. § 1842 (c)). Voting for this action: Chairman Miller and Gover- Applicant is a nonoperating corporation formed nors Wallich, Coldwell, Jackson, Partee, and Teeters. for the purpose of acquiring Bank, the fifteenth Absent and not voting: Governor Gardner. largest bank in the State of Georgia.1 Bank holds approximately $84.5 million in deposits, repre- (Signed) JOHN M. WALLACE, senting 0.58 per cent of deposits in commercial [SEAL] Assistant Secretary of the Board. banks in the State; it is the second largest of twelve banks located in the relevant banking market,2 Hawkeye Bancorporation, Des Moines, Iowa with approximately 23.2 per cent of total deposits in commercial banks in that market. The proposal Order Granting is essentially a reorganization of existing owner- Request for Reconsideration ship interests, and Applicant neither engages in and Approving Acquisition of Bank any activity directly nor holds shares of any other bank or nonbank firm. Furthermore, none of Ap- Hawkeye Bancorporation, Des Moines, Iowa, plicant's principals, officers or directors hold any ("Hawkeye"), a bank holding company within the interest in, or serve in a similar capacity, with any other bank located in the relevant market. It Institutions Regulatory Act of 1978 ("FIRA"), which is curappears that consummation of the proposal would rently awaiting the President's signature, Applicant has comnot eliminate competition or increase the concen- mitted that it will not have any interlocking directors or officers tration of banking resources in any relevant area.3 with any savings and loan association in the relevant market. The FIRA includes a prohibition against, inter alia, director Thus, the Board concludes that the effects of the interlocks between depository institutions, including commercial banks and savings and loan associations, and bank holding 1 All banking data are as of March 31, 1978. companies. While the FIRA "grandfathers" interlocks that 2 The relevant market is approximated by Bibb, Houston, existed on the date of its enactment, it appears that the Jones, and Twiggs Counties, all in the State of Georgia. interlocks proposed by Applicant in this case would not qualify 3 Originally, Applicant proposed that its board of directors for the grandfather exemption. (See Board Order dated October would include eight directors who serve as directors or honor- 27, 1978, approving the application by Commercial Bankary directors of five savings and loan associations in Macon, shares, Inc., Griffin, Georgia, to become a bank holding Georgia. In response to Congress' passage of the Financial company.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 975 meaning of the Bank Holding Company Act; has market,2 and controls 9.2 per cent of deposits in applied for the Board's approval under section commercial banks in the market. None of Hawk- 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to eye's subsidiary banks compete in the relevant acquire all of the voting shares (less directors' banking market, and Hawkeye's nearest subsidiary qualifying shares) of Second National Bank, El- bank is located in an adjacent, but separate, bankdora, Iowa ("Bank"), through the acquisition of ing market.3 From the entire record in this appliall of the voting shares of Second Bancorporation, cation, it appears that no significant competition Eldora, Iowa ("Bancorporation"). presently exists between Hawkeye's banking sub- Notice of the application, affording opportunity sidiary and Bank, and it appears unlikely that any for interested persons to submit comments and significant competition will develop in the future. views, has been given in accordance with section Accordingly, consummation of this proposal 3(b) of the Act. The time for filing comments and would not have any adverse effect upon competiviews has expired, and the Board has considered tion. Therefore, the Board concludes that competthe application and all comments received, in- itive considerations are consistent with approval cluding those submitted by the Iowa Department of the application. of Banking, in light of the factors set forth in The financial and managerial resources of Apsection 3(c) of the Act (12 U.S.C. § 1842(c)). plicant and its subsidiaries are regarded as satis- By Order dated March 7, 1978, the Board factory, and their future prospects appear favordenied Hawkeye's application to acquire Bank. able. The financial and managerial resources and Hawkeye has requested reconsideration of that future prospects of Bank are regarded as generally Order. The request for reconsideration is filed satisfactory. Accordingly, considerations relating pursuant to section 262.3(g)(5) of the Board's to banking factors are consistent with approval of Rules of Procedure, which provides that the Board the application. Upon consummation of the prowill not grant any request for reconsideration posal, Applicant intends to assist Bank in provid- "unless the request presents relevant facts that, ing its customers with additional services, such for good cause shown, were not previously pre- as farm management, investment advice and data sented to the Board, or unless it otherwise appears processing. Therefore, considerations relating to to the Board that reconsideration would be appro- the convenience and needs of the community to priate." Hawkeye bases its request upon certain be served are consistent with approval. Accordinformation relating to the Board's definition of ingly, it is the Board's judgment that, upon conthe relevant banking market. The Board has ex- sideration of all the facts of record, approval of amined the entire record in this application, and the application would be consistent with the public finds that the request for reconsideration raises interest and the application should be approved. relevant factual issues that appear appropriate in On the basis of the record, the application is the public interest for the Board to consider. Ac- approved for the reasons summarized above. The cordingly, the request for reconsideration is transaction shall not be made (a) before the thirgranted and the Board's Order of March 7, 1978, tieth calendar day following the effective date of relating to Hawkeye is hereby vacated. this Order or (b) later than three months after the Applicant, the third largest banking organization effective date of this Order, unless such period in Iowa, controls 17 banks with aggregate deposits 2 The relevant banking market is approximated by Hardin of approximately $559.9 million, representing 4.2 County, Iowa. per cent of total deposits in commercial banks in 3 In its Order of March 7, 1978, the Board defined the Iowa.1 Acquisition of Bank, with deposits of $12.8 relevant banking market to include a portion of Hardin County and adjacent Grundy County in which one of Hawkeye's million, would increase Applicant's share of combanking subsidiaries is located. On that basis the Board conmercial bank deposits in Iowa by one-tenth of 1 cluded that the elimination of existing competition in that per cent and would not have an appreciable effect market that would result from the proposed transaction was an adverse factor that warranted denial of the application. In upon the concentration of banking resources in the light of Hawkeye's request for reconsideration, the Board has State. reexamined its earlier findings with regard to the relevant banking market, and based on the entire record in this applica- Bank is the fifth largest of nine commercial tion, particularly the distance between Bank and Applicant's banking organizations in the relevant banking subsidiary bank and the lack of commercial intercourse between the cities in which these banks are located, the Board has concluded that the relevant banking market in which to 1 Unless otherwise indicated, banking data are as of June analyze the competitive effects of this proposal should be 30, 1977. limited to Hardin County, Iowa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

976 Federal Reserve Bulletin • December 1978 is extended for good cause by the Board, or by However, the banking subsidiary of that holding the Federal Reserve Bank of Chicago pursuant to company is located outside Bank's market. It delegated authority. appears from the facts of record that consumma- By order of the Board of Governors, effective tion of the proposal would not result in any in- November 3, 1978. crease in the concentration of banking resources or any adverse effects upon competition in any Voting for this action: Chairman Miller and Gover- relevant area. Thus, the Board concludes that nors Wallich, Coldwell, Partee, and Teeters. Absent and competitive considerations are consistent with apnot voting: Governors Gardner and Jackson. proval. (Signed) GRIFFITH L. GARWOOD, The Board has indicated on previous occasions [SEAL] Deputy Secretary of the Board. that a holding company should serve as a source of financial and managerial strength to its subsidi- Hunter Holding Co., ary banks, and the Board examines closely the Hunter, North Dakota managerial resources, financial condition, and future prospects of each applicant with this consid- Order Denying eration in mind.3 In this case, the Board concludes Formation of a Bank Holding Company that the record presents adverse considerations that Hunter Holding Co., Hunter, North Dakota, has warrant denial of the proposal to form a bank applied for the Board's approval under section holding company. 3(a)(1) of the Bank Holding Company Act of 1956 With respect to financial considerations, the (12 U.S.C. § 1842(a)(1)) of formation of a bank Board notes that Applicant would incur debt in holding company by acquiring 100 per cent of the connection with its proposed acquisition of Bank's voting shares (less directors' qualifying shares) of shares. Applicant proposes to service this debt Security State Bank of Hunter ("Bank"), Hunter, over a 12-year period with dividends to be declared North Dakota. by Bank. In the Board's view, Applicant's pro- Notice of the application, affording opportunity jected income would not provide Applicant suffifor interested persons to submit comments and cient financial flexibility to service its acquisition views, has been given in accordance with section debt without adversely affecting the capital posi- 3(b) of the Act. The time for filing comments and tion of Bank, or to meet any unexpected problems views has expired, and the Board has considered that might arise at Bank, even using projections the application and all comments received in light based on the figures provided by Applicant. Neiof the factors set forth in section 3(c) of the Act ther does it appear that the planned sale of Bank's (12 U.S.C. § 1842(c)). capital notes or other steps proposed by Applicant Applicant is a nonoperating corporation with no will sufficiently improve the financial resources subsidiaries, organized for the purpose of becom- and future prospects of Applicant or Bank or ing a bank holding company through the acquisi- enable Applicant to serve as a source of strength tion of Bank, which has deposits of $7.8 million.1 to Bank. Therefore, the Board concludes that Upon acquisition of Bank, Applicant would con- considerations relating to financial resources and trol the 102nd largest bank in North Dakota, future prospects weigh against approval of this controlling 0.2 per cent of the total deposits in application. commercial banks in the State. Applicant's principals acquired control of Bank Bank is the 17th largest of 23 banking organi- in December, 1974. Material in the record reflects zations in the Fargo-Moorhead banking market,2 that Bank's earnings and capital position have controlling 1.2 per cent of the market's commercial bank deposits. This proposal involves a re- 3 The Bank Holding Company Act requires that the Board, in acting upon an application to acquire a bank, inquire into structuring of Bank's ownership from individuals the financial and managerial resources of an applicant. While to a corporation controlled by the same individ- this proposal involves the transfer of the ownership of Bank uals. One of Applicant's principals has a control- from individuals to a corporation owned by the same individuals, the Act requires that before an organization is permitted ling interest in a second bank holding company. to become a bank holding company and thus obtain the benefits associated with the holding company structure, it must secure the Board's approval. Section 3(c) of the Act provides that 1 All banking data are as of March 31, 1978. in every case the Board must consider, among other things, 2 The Fargo-Moorhead banking market is approximated by the financial and managerial resources of both the applicant Cass County, North Dakota, and Clay County, Minnesota. company and the bank to be acquired. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 977 generally been lower than those of similarly situ- for interested persons to submit comments and ated banks in the State. Such results appear to be views, has been given in accordance with section attributable at least in part to the policies and 3(b) of the Act. The time for filing comments and practices of Applicant's principals; and the Board views has expired, and the Board has considered is unable to conclude that managerial consid- the application and all comments received in light erations lend any weight toward approval of this of the factors set forth in section 3(c) of the Act application. (12 U.S.C. § 1842(c)). No significant changes in Bank's operations or This application concerns the acquisition of an in the services offered to Bank's customers are indirect interest in Bank in violation of the Act. anticipated to follow from consummation of the Upon the effective date of the 1970 Amendments proposed acquisition. Consequently, consid- to the Act, which brought one-bank holding comerations relating to the convenience and needs of panies within the Act's coverage, Applicant's the community to be served are consistent with principals owned all the shares of Applicant and but do not lend weight toward approval of this of two other companies, Sierra Rock Products application. Company ("Sierra") and Orange County Rock On the basis of the circumstances concerning Products Company ("Orange County"), which this application, the Board concludes that the respectively held 24 per cent and 35 per cent of banking considerations involved in this proposal the voting shares of Coast Bancorp. These compresent adverse factors bearing upon the financial panies had acquired their interests in Bank before resources and future prospects of Applicant and June 30, 1968. By virtue of its indirect ownership Bank. Such adverse factors are not outweighed by of more than 25 per cent of Bank, Orange County any procompetitive effects or by benefits to the was required to register as a bank holding comconvenience and needs of the community. Ac- pany, but failed to do so, in violation of section cordingly, it is the Board's judgment that approval 5(a) of the Act. In 1973 the two companies merged of the application would not be in the public into Applicant without the Board's prior approval, interest and that the application should be denied. a transaction that caused Applicant, which had no On the basis of the facts of record, the applica- prior interest in Bank, to become a bank holding tion is denied for the reasons summarized above. company indirectly controlling a majority of By order of the Board of Governors, effective Bank's shares, in violation of the Act.1 November 29, 1978. The record reflects that this merger was undertaken on advice of counsel as an estate planning Voting for this action: Chairman Miller and Govermeasure and to simplify the business affairs of nors Coldwell, Partee, and Teeters. Absent and not voting: Governor Wallich. Applicant's principals. In addition, it appears that, while Applicant and its predecessor, Orange (Signed) GRIFFITH L. GARWOOD, County, were late in learning of their respon- [SEAL] Deputy Secretary of the Board. sibilities under the Act, as soon as Applicant learned of them it acted responsibly and in good faith, contacting its Reserve Bank promptly and John-Wade Co., cooperating fully with the Federal Reserve System Santa Ana, California in seeking to resolve this matter. Applicant has Order Approving also furnished the Board definite and satisfactory Formation of Bank Holding Company undertakings regarding its future conduct, and by voluntarily relinquishing certain exemption privi- John-Wade Co., Santa Ana, California, has leges to which it might otherwise be entitled, applied for the Board's approval under section 3(a)(1) of the Bank Holding Company Act (12 1 In addition, in 1976 Applicant acquired an additional 154 U.S.C. § 1842(a)(1)) of formation of a bank shares of Coast Bancorp, increasing its ownership of that holding company by retaining approximately 60 company from 59.49 to 59.98 per cent, in reliance on section per cent of the voting shares of Coast Bancorp, 3(a)(B) of the Act, which permits a bank holding company controlling a majority of a bank's shares to acquire additional Long Beach, California, a bank holding company shares without prior Board approval. The privilege of section that controls Coast Bank ("Bank"), Long Beach, 3(a)(B) is available only to bank holding companies that lawfully control a majority of a bank's shares. Since Applicant California. did not, its 1976 purchase was in violation of the Act, though Notice of the application, affording opportunity based on a reasonable misunderstanding of section 3(a)(B). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

978 Federal Reserve Bulletin • December 1978 Applicant has provided sufficient evidence to per- Hawaii, which it acquired between 1958 and 1973. suade the Board that Applicant's future conduct It appears that this ownership is permissible under will be subject to adequate supervision and con- section 4(c)(ii) of the Act,4 and the Board believes form to the requirements of the Act. In accordance that continued ownership will not jeopardize or with its policy regarding violations of the Act and impair the financial resources of any organization upon examination of all the facts of record, the involved in this application. Board has concluded that Applicant's violations However, Applicant has waived all rights under do not reflect so adversely on Applicant's mana- the Act's exemption with respect to its future gerial resources as to require denial of its applica- acquisitions and activities. In the future it will not tion to retain shares of Coast Bancorp. acquire new properties or engage in new nonbank By retaining its indirect interest in Bank, which activities except on the same terms applicable to holds deposits of $41 million, Applicant would bank holding companies having no exemption or control the 89th largest banking organization in grandfather rights, and then only with Board ap- California and approximately 0.04 per cent of the proval required for such other bank holding comtotal deposits in commercial banks in the State.2 panies. This agreement is part of a series of Bank is the 61st largest commercial bank compet- undertakings by Applicant designed to encourage ing in the relevant banking market, holding ap- closer consultation between Applicant and the proximately 0.1 per cent of the total deposits in Federal Reserve System, and to ensure that Applicommercial banks in that market.3 Since Applicant cant's future conduct will be in compliance with has no other bank subsidiaries and is not under the Act and subject to adequate supervision, to common control with any other bank or bank the end that Applicant's financial resources will holding company, and since the merger by which be protected and the violations of the Act by Applicant acquired Coast Bancorp's shares was in Applicant and its predecessor, Orange County, the nature of a reorganization and consolidation will not recur. The agreement also recognizes the of existing interests in Bank by Applicant's fact that, while Applicant is the successor to principals, it appears that retention of Applicant's Orange County, a company covered in 1970 and indirect interest in Bank would not have any ad- having exemption rights under section 4(c)(ii) of verse effect on competition or concentration of the Act, it is also the successor to Sierra, a banking resources in any relevant area, and that company having no exemption or grandfather its original acquisition of that interest did not have rights under the Act. The retention by Applicant any adverse effect. Thus, the Board concludes that of Sierra's indirect interest in Bank represents a the effects of this proposed retention on competi- material expansion in a single organization of the tion are consistent with approval of the applica- banking interest that gave rise to Orange County's tion. In light of undertakings by Applicant that would 4 Orange County was a bank holding company covered in govern its future conduct and restrict its future 1970 that, because of its ownership by a single family, was nonbank expansion, the financial and managerial entitled to the benefits of the family exemption of section resources of Applicant are considered generally 4(c)(ii) of the Act. Under that section Orange County could have retained its nonbank assets and activities, whether or not satisfactory, as are the managerial and financial retention would have been permissible for other bank holding resources of Bank and Coast Bancorp, and their companies under section 4(c)(8) of the Act, and it could have future prospects appear favorable. Thus, banking expanded those activities and commenced new activities without Board approval. For example, under the family exemption, factors are consistent with approval of the appli- Orange County could have acquired Applicant's real property cation. even though the Board has determined real estate development and management to be impermissible for bank holding compa- Central to the Board's conclusion regarding nies. Because all three companies that were merged in 1973 Applicant's managerial and financial resources, have at all times been wholly owned by the same family, however, is Applicant's agreement to curtail future Applicant's acquisition of Orange County's indirect interest in Bank effected no substantial change in the control of Bank unsupervised expansion. Applicant now owns and or the beneficial ownership of Bank's shares. Accordingly, manages some real property in California and under section 2(e) of the Act, Applicant should be viewed as a successor to Orange County and entitled to its rights under the family exemption of the Act with respect to the retention of its nonbank assets and activities. These assets and activities 2 Banking data are as of December 31, 1977, except as will cease to be protected by the family exemption if at any otherwise noted. time 15 per cent or more of Applicant's shares become owned 3 The relevant banking market is approximated by the Los by persons other than members of the family that now owns Angeles RMA. Market data are as of June 30, 1977. those shares, and divestiture would then be required. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 979 exemption, and the Board regards the retention of in deposits).1 Upon acquisition of Bank, Applicant that interest acquired from Sierra as warranting would control the 604th largest banking organitermination of Applicant's future exemption privi- zation in Iowa and approximately 0.03 per cent leges as an appropriate condition to approval of of total deposits in commercial banks in the State. this application. Bank is the eighth largest of nine banks located Although this application involves the retention in the Elkader banking market2 and holds approxof an indirect interest in Bank, and its approval imately 5.4 per cent of the market's commercial would effect no changes in the banking services bank deposits. This proposal involves a restrucoffered by Bank, considerations relating to the turing of Bank's ownership from individuals to a convenience and needs of the community to be corporation controlled by the same individuals. served are consistent with approval of the applica- Applicant's two principals, who also serve as tion. It has been determined that Applicant's re- officers and directors of Applicant, are principals tention of its shares of Coast Bancorp, subject to of a one-bank holding company and its subsidiary the commitments of record, would be in the public bank, Union State Bank, Monona, Iowa ("Union interest and that its application should be ap- Bank"), located in Bank's market. Union Bank proved. ($10.2 million in deposits) is the fifth largest bank On the basis of the record, the application is in the market, controlling 11.2 per cent of market approved for the reasons and subject to the condi- deposits. At the time Applicant's principals actions summarized above. quired control of Bank, in January 1970, they By order of the Board of Governors, effective indirectly held the controlling interest in Union November 1, 1978. Bank and served as its president and vice president. Bank and Union Bank together controlled Voting for this action: Chairman Miller and Gover- 12.5 per cent of the deposits in the Elkader market, nors Wallich, Coldwell, Jackson, Partee, and Teeters. or 2.7 per cent and 9.8 per cent, respectively.3 Absent and not voting: Governor Gardner. Although the acquisition of Bank by Applicant's (Signed) JOHN M. WALLACE, principals eliminated some competition existing at [SEAL] Assistant Secretary of the Board. that time between Bank and Union Bank, in the Board's judgment, the acquisition had only slightly adverse effects upon competition. Upon consummation of the subject proposal, the two Keystone Bancshares, Inc., banks controlled by Applicant's principals would Monona, Iowa hold aggregate deposits representing 16.6 per cent Order Approving Formation of of market deposits or slightly more than the deposits held by the market's second largest banking a Bank Holding Company organization. While approval of the subject pro- Keystone Bancshares, Inc., Monona, Iowa, has posal would further solidify the relationship beapplied for the Board's approval under section tween the two affiliated banks and reduce the 3(a)(1) of the Bank Holding Company Act (12 likelihood that the banks would become inde- U.S.C. § 1842(a)(1)) to become a bank holding pendent competitors in the future, based upon all company through the acquisition of 80 per cent of the facts of record, including the small size of or more of the voting shares of Peoples State Bank, the two banks, their rank in the market, and the Elkader, Iowa ("Bank"). presence of banking alternatives in the Elkader Notice of the application, affording opportunity banking market, it appears that consummation of for interested persons to submit comments and the proposal would have only slightly adverse views, has been given in accordance with section effects upon competition. 3(b) of the Act. The time for filing comments and Where principals of an applicant are engaged views has expired, and the Board has considered in operating a chain of one-bank holding compathe application and all comments received in light nies, the Board has indicated that it is appropriate of the factors set forth in section 3(c) of the Act (12 U.S.C. § 1842(c)). 1 All deposit data are as of December 31, 1977, unless Applicant is a nonoperating Iowa corporation otherwise noted. 2 The Elkader banking market is approximated by Clayton organized for the purpose of becoming a bank County, Iowa. holding company by acquiring Bank ($4.9 million 3 Deposit data are as of December 31, 1969. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

980 Federal Reserve Bulletin • December 1978 to apply multi-bank holding company standards in By order of the Board of Governors, effective assessing the financial prospects both of an appli- November 1, 1978. cant seeking to become a bank holding company and of its proposed subsidiary bank.4 Based upon Voting for this action: Chairman Miller and Governors Wallich, Coldwell, Jackson, Partee, and Teeters. such analysis in this case, the financial and mana- Absent and not voting: Governor Gardner. gerial resources and future prospects of Applicant, Bank, and the affiliated bank and bank holding (Signed) JOHN M. WALLACE, company appear to be generally satisfactory, par- [SEAL] Assistant Secretary of the Board. ticularly in light of certain commitments made by Applicant in connection with this application. The Otto Bremer Company, future prospects of Applicant are entirely depend- St. Paul, Minnesota ent upon the resources of Bank. Applicant proposes to service the debt to be incurred over a Order Approving Acquisition of Bank twelve-year period through dividends to be de- Otto Bremer Company, St. Paul, Minnesota, a clared by Bank and the tax benefit to be derived bank holding company within the meaning of the from filing consolidated tax returns. In light of the Bank Holding Company Act, has applied for the past earnings of Bank and Applicant's commit- Board's approval under § 3(a)(3) of the Act (12 ments, the anticipated growth in Bank earnings U.S.C. § 1842(a)(3)) to acquire 68.2 per cent of appears to provide Applicant with sufficient finanthe voting shares of First National Bank of Crookcial flexibility to meet its annual debt servicing ston, Crookston, Minnesota ("Bank"). requirements, while maintaining an adequate cap- Notice of the application, affording opportunity ital position for Bank. Therefore, considerations for interested persons to submit comments and relating to banking factors are consistent with views, has been given in accordance with § 3(b) approval of the application. of the Act. The time for filing comments and views Since Applicant's principals acquired control of has expired, and the Board has considered the Bank in 1970, Bank has improved its banking application and all comments received in light of services to its customers, and recently has estabthe factors set forth in § 3(c) of the Act (12 U.S.C. lished a new office in Elkader, Iowa, to better serve § 1842(c)). the convenience of Bank's customers. Following Applicant, a wholly-owned subsidiary of Otto consummation of the transaction, Applicant in- Bremer Foundation, St. Paul, Minnesota ("Fountends to assist Bank in continuing to provide these dation"), is a multi-bank holding company that banking services and to aid Bank in the conproposes to acquire shares of Bank from Foundastruction of a new physical facility for its Elkader tion as part of a reorganization of Applicant and office. These considerations relating to conven- Foundation. Applicant has 20 subsidiary banks in ience and needs of the community to be served, Minnesota and North Dakota. In addition Appliwhile not substantial, lend some weight toward cant and Foundation together hold a majority inapproval of this application. Accordingly, it is the terest in four other banks. The Otto Bremer orga- Board's judgment that the proposed acquisition nization is the third largest banking organization would be in the public interest and that the appliin Minnesota, with 16 subsidiary banks (including cation should be approved. Bank) holding total deposits of $474.8 million, On the basis of the record, the application is which represents 2.9 per cent of total deposits in approved for the reasons summarized above. The commercial banks in the State.1 transaction shall not be consummated before the Bank (deposits of $31.5 million) is the largest thirtieth calendar day following the effective date bank in the relevant banking market,2 controlling of this Order or later than three months after the 33.6 per cent of the total deposits in commercial effective date of this Order, unless such period banks in the market. Two of Applicant's subsidiis extended for good cause by the Board, or by ary banks are located in the same market and hold the Federal Reserve Bank of Chicago pursuant to total deposits of $34.4 million representing 36.7 delegated authority. 4 See, e.g., the Board's Order dated June 14, 1976, denying 1 Banking data are as of June 30, 1977. the application of Nebraska Banco, Inc., Ord, Nebraska, to 2 The relevant market is approximated by the southwestern become a bank holding company (62 FEDERAL RESERVE BUL- one-third of Polk County and the northern edge of Norman LETIN 638 (1976)). County, both in Minnesota. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 981 per cent of total deposits in commercial banks in Voting for this action: Chairman Miller and Goverthe market. Upon consummation of the proposal nors Wallich, Coldwell, Partee, and Teeters. Absent and Applicant would control 70.2 per cent of market not voting: Governors Gardner and Jackson. deposits. Three independent competitors would (Signed) JOHN M. WALLACE, remain in the market. [SEAL] Assistant Secretary of the Board. Although the relevant market will remain highly concentrated upon consummation of this proposal, Republic of Texas Corporation, it does not appear that Applicant's proposed ac- Dallas, Texas quisition of Bank as part of a corporate reorganization will contribute to the concentration of Order Approving Acquisition of Bank banking resources in the market. Bank and Appli- Republic of Texas Corporation, Dallas, Texas, cant's two bank subsidiaries in the market were a bank holding company within the meaning of acquired more than 40 years ago by the individual the Bank Holding Company Act, has applied for who established Applicant and Foundation, and the Board's approval under section 3(a)(3) of the they have remained under common control since Act (12 U.S.C. § 1842(a)(3)) to acquire all of the that time. The banks were financially troubled at voting shares (less directors' qualifying shares) of the time of acquisition and it does not appear that the successor by merger to Texas State Bank, their acquisition was anticompetitive at that time. Austin, Texas ("Bank"). The bank into which Because of the long-standing relationship between Bank is to be merged has no significance except Applicant, Foundation and their subsidiary banks as a means to facilitate the acquisition of the voting it appears that no meaningful competition exists shares of Bank. Accordingly, the proposed acquibetween Bank and Applicant's two bank subsidisition of shares of the successor organization is aries in the relevant market, and the proposed treated herein as the proposed acquisition of the acquisition of Bank therefore would not eliminate shares of Bank. any existing competition. Accordingly, in view of Notice of the application, affording opportunity the above and other facts of record, competitive for interested persons to submit views and recomconsiderations appear consistent with approval of mendations, has been given in accordance with the application. section 3(b) of the Act (12 U.S.C. § 1842(b)). The financial and managerial resources of Ap- The time for filing views and recommendations plicant, its subsidiaries and Bank are regarded as has expired, and the application and all comments generally satisfactory and the future prospects of have been considered in light of the factors set each appear favorable. Accordingly, banking facforth in section 3(c) of the Act (12 U.S.C. tors are consistent with approval of the application. § 1842(c)). Applicant does not propose to introduce any new Applicant, the fourth largest banking organiservices at Bank in connection with the proposed zation in Texas, controls 16 banks with aggregate acquisition. However, considerations relating to deposits of approximately $4.08 billion, reprethe convenience and needs of the community to senting approximately 6.77 per cent of total debe served are consistent with approval of the posits in commercial banks in the State.1 Acquisiapplication. Accordingly, the Board concludes that tion of Bank, the 60th largest banking organization approval of the application would be consistent in the State with deposits of $86.5 million, would with the public interest and that the application increase Applicant's share of commercial bank should be approved. deposits in Texas by .14 per cent and would not On the basis of the record, the application is alter Applicant's ranking in the State. approved for the reasons summarized above. The Bank is the fifth largest of 21 banking organitransaction shall not be made before the thirtieth zations in the relevant banking market,2 holding calendar day following the effective date of this 4.6 per cent of the total commercial bank deposits Order or later than three months after the effective date of this Order, unless such period is extended for good cause by the Board, or by the Federal 1 All banking data are as of December 31, 1977, and reflect bank holding company formations and acquisitions approved Reserve Bank of Minneapolis pursuant to deleas of September 30, 1978. gated authority. 2 The relevant banking market is approximated by the Austin RMA as defined by Rand McNally & Company's 1978 Com- By order of the Board of Governors, effective mercial Atlas & Marketing Guide. It includes most of Travis November 3, 1978. and a small part of Williamson Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

982 Federal Reserve Bulletin • December 1978 in the market. Bank is the largest bank in the calendar day following the effective date of this market not affiliated with a bank holding company. Order, or later than three months after the effective The four largest banking organizations in the mar- date of this Order unless such period is extended ket control, respectively, 26.1, 22.0, 18.1, and for good cause by the Board, or by the Federal 12.7 per cent of market deposits, and three of the Reserve Bank of Dallas pursuant to delegated four are affiliated with the State's largest banking authority. organizations. Applicant does not currently By Order of the Secretary of the Board, acting operate in the market. Bank is located approxi- pursuant to delegated authority from the Board of mately 77 miles from Applicant's nearest subsidi- Governors, effective November 2, 1978. ary. Therefore, approval of this application would have no adverse effect upon existing competition. (Signed) JOHN M. WALLACE, Affiliation of Bank with Applicant might decrease [SEAL] Assistant Secretary of the Board. market concentration by the introduction of a new competitor into the market to compete with the Texas American Bancshares, Inc., larger banking organizations in the market. While Fort Worth, Texas consummation of the proposal would reduce the number of independent banking organizations in Order Approving Acquisition of Bank Shares the Austin market, this does not appear to be significant since a number of independent banks Texas American Bancshares, Inc., Fort Worth, would remain available as entry vehicles into the Texas, a bank holding company within the meanmarket after consummation of the proposal. In ing of the Bank Holding Company Act, has aplight of the above and other facts of record, it plied for the Board's approval under section is concluded that the proposed acquisition would 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to have no significantly adverse effects on competi- acquire 75 per cent of the voting shares of Bank tion. Thus, it is concluded that competitive con- of Fort Worth ("Bank"), Fort Worth, Texas. siderations are consistent with approval of the Notice of the application, affording opportunity application. for interested persons to submit comments and views, has been given in accordance with section The financial and managerial resources and fu- 3(b) of the Act. The time for filing comments and ture prospects of Applicant, its subsidiaries, and views has expired, and the Board has considered Bank are regarded as generally satisfactory and the application and all comments received, inconsistent with approval of the application, particcluding those filed after the expiration of the comularly in light of Applicant's commitment to inject ment period on behalf of Ella Jackson and Willie additional capital into Bank upon consummation Wingfield ("Protestants"), in light of the factors of the proposal. Thus, considerations relating to set forth in section 3(c) of the Act (12 U.S.C. banking factors are consistent with approval of the § 1842(c)). application. Following consummation of the Applicant is the seventh largest banking organitransaction, Applicant plans to encourage Bank to zation in Texas, with ten subsidiary banks holding expand its commercial and industrial lending actotal deposits of $1.76 billion, representing 2.9 tivities as well as continue aggressive consumer per cent of total deposits in commercial banks in banking programs. In addition, Bank will be able the State.1 Bank, which is not among the larger to offer credit life and credit accident and health banking organizations in Texas, holds total deposinsurance to its customers through Applicant's its of $91.9 million representing 0.15 per cent of insurance subsidiary at rates lower than the State's total deposits in commercial banks in the State. maximum rates currently being charged by Bank's Bank is presently regarded as a subsidiary of carrier. Thus, considerations relating to conven- Applicant because of Applicant's direct ownership ience and needs of the community to be served of 24.99 per cent of Bank's outstanding voting lend weight toward approval of the application. shares and control of an additional 3.5 per cent Accordingly, it has been determined that the proof Bank's outstanding voting shares held by Apposed acquisition would be in the public interest plicant in a fiduciary capacity through the trust and that the application should be approved. department of Applicant's lead bank, Fort Worth On the basis of the record, the application is approved for the reasons summarized above. The transaction shall not be made before the thirtieth 1 Banking data are as of December 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 983 National Bank ("FWNB"), Fort Worth, Texas.2 Court for the Northern District of Texas. In sup- Because Bank is already a subsidiary of Applicant, port of their allegations, Protestants state that the effect of the acquisition of the remainder of between 1971 and 1976, FWNB employed blacks Bank's outstanding voting shares will be to con- in less than 14 per cent of its work force, although solidate Applicant's control of Bank, and approval 1970 census figures estimate that blacks constiof the application would not result in any increase tuted 14 per cent of the work force in the Fort in the percentage of bank deposits in the State Worth SMS A, and Protestants claim that other deemed to be controlled by Applicant. minorities have been similarly underrepresented. Applicant is the largest banking organization in Protestants believe that Applicant may extend disthe Fort Worth banking market with approximately criminatory employment practices to Bank should 28.4 per cent of total deposits in commercial banks this application be approved. in the market.3 Of this market share 2.5 per cent Discrimination in employment on the basis of is held through Bank, and approval of the subject race or sex is unlawful, and evidence of unlawful application would result in consolidation of Ap- conduct by a bank holding company may be releplicant's control over Bank's market share. While vant to the Board's consideration of applications it appears that approval of the application would under the Act and may clearly bear on the manaeliminate some existing competition between Ap- gerial integrity of an applicant.4 However, with plicant and Bank, the amount of competition regard to Protestants' allegations of employment eliminated would be slight in view of the long- discrimination, the Board concludes that the evistanding relationship between Bank and Appli- dence submitted by Protestants does not support cant's lead bank, FWNB. Bank was organized in any adverse finding regarding Applicant or the 1946 by officers, directors, and shareholders of likely effect of its acquisition of Bank. FWNB; a majority of Bank's shares was controlled This conclusion is supported by the actions of by FWNB for eight years, and the two institutions those Federal agencies that are directly responsible have remained closely associated. Furthermore, 40 for the enforcement and implementation of equal additional banking organizations will remain as employment opportunity laws and regulations as competitors in the Fort Worth banking market, and they affect Applicant. The EEOC has formally the market will remain attractive for de novo entry. considered Protestants' complaints regarding Accordingly, the Board concludes that the pro- FWNB's employment practices and in both cases posed acquisition would have only slightly adverse has dismissed those complaints as being without effects on existing competition. merit. Furthermore, the Treasury Department has The financial and managerial resources of Ap- reviewed FWNB's equal employment opportunity plicant and Bank are regarded as generally satis- program and has certified that FWNB is in comfactory and the future prospects of each appear pliance with relevant standards pertaining to emfavorable. Accordingly, banking factors are con- ployment discrimination, and all employment data sistent with approval of the application. submitted by Protestants predate this certification. In connection with this application Protestants Under the circumstances, the Board believes that have claimed that approval of the proposed acqui- Protestants' claims do not support an adverse sition would not serve the convenience and needs finding relevant to this application, and do not of the Fort Worth community because, as they warrant further postponement of Board considallege, FWNB engages in illegal discriminatory eration of this application. Neither does it appear employment practices. This protest arises out of that Board action on this application will impair complaints filed by Protestants with the Equal any remedy available to Protestants by law. Opportunity Employment Commission ("EEOC") In connection with this proposal Applicant proand subsequent suits filed by them against FWNB poses to expand Bank's services, including trust and now pending before the United States District services, payroll processing, and international banking In addition, Bank will be able to offer 2 As part of this proposal Applicant seeks authority to retain the shares of Bank held by it in a fiduciary capacity beyond 4 The Board notes, however, that there may be limits to a period of two years. Of these shares 1,184 (0.4 per cent) its ability to take into consideration, under the convenience will remain in the trust department of FWNB, and the re- and needs standard of the Bank Holding Company Act, matters mainder will be held directly by Applicant. of significant public interest that nevertheless are not directly 3 The Fort Worth banking market is approximated by the within the scope of the Board's regulatory responsibilities Fort Worth RMA, consisting of Tarrant County and portions under the Act. See Western Bancshares, Inc. v. Board of of Denton, Johnson, Parker, and Wise Counties. Governors, 480 F.2d 749 (10th Cir. 1973). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 984 Federal Reserve Bulletin • December 1978 lower rates on credit-related insurance through mined by the Board to be closely related to bank- Applicant's insurance subsidiary and will benefit ing (12 C.F.R. § 225.4(a)(1) and (3)). from Applicant's lending expertise and provision Notice of the application, affording opportunity of data processing facilities. Accordingly, the for interested persons to submit comments and Board finds that consideration of the convenience views on the public interest factors, has been duly and needs of the community to be served lends published (43 Federal Register 47788 (1978)). weight toward approval sufficient to outweigh the The time for filing comments and views has exslightly adverse competitive effects associated with pired, and the Board has considered the application the proposal. It is the Board's judgment that the and all comments received in light of the public proposed transaction is consistent with the public interest factors set forth in section 4(c)(8) of the interest and that the application should be ap- Act. proved. Applicant, the largest bank holding company in On the basis of the record, the application is Michigan, controls six banking subsidiaries and approved for the reasons summarized above. The has consolidated assets of $8.6 billion.1 NBD ($47 transaction shall not be made before the thirtieth million in assets as of September 30, 1978) encalendar day following the effective date of this gages in a general mortgage banking business Order, or later than three months after the effective through offices in Michigan, Virginia, and Calidate of this Order unless such period is extended fornia. As of December 1977, NBD had a mortfor good cause by the Board, or by the Federal gage servicing portfolio of $844 million and Reserve Bank of Dallas pursuant to delegated ranked as the 51st largest mortgage banking firm authority. in the United States. Currently NBD has a mort- By order of the Board of Governors, effective gage portfolio of $973 million. Pioneer ($7.1 November 1, 1978. million in assets) currently services a mortgage portfolio of approximately $78 million from its Voting for this action: Chairman Miller and Gover- main office in Upland, California, and from its nors Wallich, Coldwell, Jackson, Partee, and Teeters. branch office in Roseville, California. Pioneer Absent and not voting: Governor Gardner. makes and acquires mortgage loans for its own (Signed) JOHN M. WALLACE, account and for the account of others. Pioneer also [SEAL] Assistant Secretary of the Board. has a wholly owned subsidiary that offers casualty insurance. However, Applicant does not intend to acquire this subsidiary or engage in this activity. ORDER UNDER SECTION 4 From the record it does not appear that any OF BANK HOLDING COMPANY ACT competition would be eliminated by consummation of this proposal. NBD's California office is National Detroit Corporation, located in San Diego and opened for business in Detroit, Michigan 1978. This office serves a market spearate and Order Approving Acquisition of distinct from that served by Pioneer, and Applicant Pioneer Mortgage Corporation and Pioneer do not derive business from one another's market. Moreover, without consumma- National Detroit Corporation, Detroit, Michi- tion of this proposal, it is doubtful that Pioneer gan, a bank holding company within the meaning could remain a viable competitor in its market. of the Bank Holding Company Act, has applied The Board finds that Applicant's acquisition of for the Board's approval, under section 4(c)(8) of Pioneer would have no adverse effect upon comthe Act (12 U.S.C. § 1843(c)(8)) and section petition. 225.4(b)(2) of the Board's Regulation Y (12 The acquisition of Pioneer will ensure the con- C.F.R. § 225.4(b)(2)), to acquire, through its tinued provision of mortgage banking services wholly owned subsidiary, NBD Mortgage Com- from Pioneer's present locations and should inpany ("NBD"), Detroit, Michigan, certain assets crease the amount of mortgage funds available and of Pioneer Mortgage Corporation ("Pioneer"), provide improved stability in the flow of mortgage Upland, California, and to engage in mortgage funds into the communities served. The Board banking activities from Pioneer's existing offices. The proposed activities of originating, marketing, 1 Unless otherwise indicated, all data are as of June 30, and servicing mortgage loans have been deter- 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 985 finds that evidence in the record indicates that effectuage section 4 of the Bank Holding Company consummation of this proposal would not result Act (12 U.S.C. § 1843) ("BHC Act"). in any undue concentration of resources, conflicts In connection with this request, the following of interest, unsound banking practices, or any information is deemed relevant for purposes of other adverse effects upon the public interest. issuing the requested certification: 1 Based upon the foregoing and other consid- 1. Invesco is a corporation organized on Ocerations reflected in the record, the Board has tober 22, 1958, under the laws of the State of determined that the balance of the public interest Minnesota. factors the Board is required to consider under 2. On August 26, 1966, Invesco acquired ownsection 4(c)(8) is favorable. Accordingly, the ap- ership and control of 31,696 shares, representing plication is hereby approved. This determination approximately 79 per cent of the outstanding votis subject to the conditions set forth in section ing shares of River Forest State Bank, River 225.4(c) of Regulation Y and to the Board's Forest, Illinois ("Bank"). authority to require reports by and make examina- 3. Invesco became a bank holding company on tions of bank holding companies and their subsid- December 31, 1970, as a result of the 1970 iaries, and to require such modification or termi- Amendments to the BHC Act, by virtue of. its nation of the activities of a holding company or ownership and control at that time of more than any of its subsidiaries as the Board finds necessary 25 per cent of the outstanding voting shares of to assure compliance with the provisions and pur- Bank, and it registered as such with the Board poses of the Act and the Board's regulations and on June 28, 1971. Invesco would have been a bank orders issued thereunder, or to prevent evasion holding company on July 7, 1970, if the BHC thereof. Act Amendments of 1970 had been in effect on The transaction shall be made not later than that date, by virtue of its ownership and control three months after the effective date of this Order on that date of more than 25 per cent of the voting unless such period is extended for good cause by shares of Bank. Invesco presently owns and conthe Board or by the Federal Reserve Bank of trols approximately 98 per cent of the outstanding Chicago pursuant to delegated authority. voting shares of Bank. By order of the Board of Governors, effective 4. S&M is a wholesale distributor of automo- November 22, 1978. tive accessories and operates a retail hardware store. Invesco acquired 100 per cent, or 40,000 Voting for this action: Chairman Miller and Goverof S&M's voting shares, on December 31, 1969. nors Wallich, Coldwell, Partee, and Teeters. To date, there have been no changes in the number (Signed) GRIFFITH L. GARWOOD, of percentage of S&M shares owned by Invesco. [SEAL] Deputy Secretary of the Board. However, prior to the proposed distribution, the number of S&M's voting shares will be increased to a number equal to the number of Invesco shares then outstanding.2 Under section 4 of the Bank PRIOR CERTIFICATION PURSUANT TO THE BANK HOLDING COMPANY TAX ACT OF 1976 1 This information derives from Invesco's correspondence Investment Corporation of America, with the Board concerning its request for this certification, Invesco's Registration Statement filed with the Board pursuant Minneapolis, Minnesota to the BHC Act, and other records of the Board. 2 Under subsection (c) of section 1101 of the Code, property [Docket No. TCR 76-150] acquired after July 7, 1970, generally does not qualify for the tax benefits of section 1101(a) when distributed by an otherwise qualified bank holding company. However, where such prop- Investment Corporation of America, Min- erty is acquired by a qualified bank holding company in a neapolis, Minnesota ("Invesco"), has requested transaction in which gain is not recognized under section 305(a) of the Code, then section 1101(a) is applicable. Invesco has a prior certification pursuant to section 1101(a) of indicated that these shares of S&M will be acquired in a the Internal Revenue Code ("Code"), as amended transaction in which gain would not be recognized under section 305(a) of the Code. Accordingly, even though such by section 2(a) of the Bank Holding Company Tax shares would be acquired after July 7, 1970, those shares would Act of 1976 ("Tax Act"), that Invesco's proposed nevertheless qualify as property eligible for the tax benefits pro rata distribution to its shareholders of all its provided in section 1101(a) of the Act, by virtue of section 1101(c), if the shares of S&M are in fact received in a shares of S&M Company, Minneapolis, Minne- transaction in which gain is not recognized under section 305(a) sota ("S&M"), is necessary or appropriate to of the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 986 Federal Reserve Bulletin • December 1978 Holding Company Act, Invesco may not retain its should hereafter determine that facts material to shares of S&M if Invesco were to continue to be this certification are otherwise than as represented a bank holding company beyond December 31, by Invesco, or that Invesco has failed to disclose 1980. to the Board other material facts, it may revoke 5. Invesco has committed to the Board that it this certification. This certification is also granted will terminate all interlocking relationships be- on the condition that after December 31, 1978, tween Invesco and S&M by December 31, 1978. no person holding an office or position (including On the basis of the foregoing information it is an advisory or honorary position) with Invesco or hereby certified that: any of its subsidiaries as an officer, director, pol- (A) Invesco is a qualified bank holding cor- icy-making employee or consultant, or who perporation, within the meaning of subsection (b) of forms (directly, or through an agent, representative section 1103 of the Code, and satisfies the re- or nominee) functions comparable to those norquirements of that subsection; mally associated with such office or position, will (B) the shares of S&M are "prohibited prop- hold any such office or position or perform any erty" within the meaning of section 1103(c) of such function with S&M or any of its subsidiaries. the Code; and By order of the Board of Governors, acting (C) the distribution by Invesco of all of its through its General Counsel, pursuant to delegated shares of S&M is necessary or appropriate to authority (12 C.F.R. § 265.2(b)(3)), effective effectuate section 4 of the BHC Act. November 15, 1978. This certification is based upon the representations made to the Board by Invesco and upon (Signed) GRIFFITH L. GARWOOD, the facts set forth above. In the event the Board [SEAL] Deputy Secretary of the Board. ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT BY THE BOARD OF GOVERNORS During November 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) Gordon Financial Corporation, The First National Bank November 1, 1978 Gordon, Texas of Gordon, Gordon, Texas Quail Creek Bancshares, Inc., Quail Creek Bank, N.A., November 2, 1978 Oklahoma City, Oklahoma Oklahoma City, Oklahoma Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 987 Sections 3 and 4 Nonbanking company Effective Applicant Bank(s) (or activity), date Oklahoma National Oklahoma National To engage de novo in November 27, 1978 Bancshares, Inc., Bank and Trust credit-related in- Oklahoma City, Co., Oklahoma surance agency activi- Oklahoma City, Oklahoma ties through an indirect ownership interest in Myriad Insurance Agency, Inc. 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 Ruth Jones Nelson Finance Corn Belt State Bank, Chicago November 30, 1978 Corp., Correctionville, Correction ville, Iowa Iowa Petersen State Bank, Petersen, Iowa New Virginia Bancorporation, First City Bank of Newport Richmond November 29, 1978 Springfield, Virginia News, Newport News, Virginia Section 4 Nonbanking Company Reserve Effective Applicant (or activity) Bank date First Texas Bancorp, Inc. Underwriting credit life and credit Dallas November 28, 1978 accident and health insurance directly related to extensions of credit by Applicant's subsidiaries ORDER APPROVED UNDER BANK MERGER ACT Effective Applicant Bank(s) date The Connecticut Bank and Liberty National Bank, November 1, 1978 Trust Co., Hartford, Stamford, Connecticut Connecticut Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 988 Federal Reserve Bulletin • December 1978 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. Ella Jackson, et al. v. Board of Governors, filed Vickars-Henry Corp. v. Board of Governors, filed November 1978, U.S.C.A. for the Fifth Circuit. December 1977, U.S.C.A. for the Ninth Circuit. United Bank Corporation, New York v. Board Emch v. The United States of America, et al., of Governors, filed November 1978, U.S.C.A. filed November 1977, U.S.D.C. for the Eastern for the Second Circuit. District of Wisconsin. Metro-North State Bank, Kansas City v. Board Corbin v. Federal Reserve Bank of New York, of Governors, filed October 1978, U.S.C.A. for Board of Governors, et al., filed October 1977, the Eighth Circuit. U.S.D.C. for the Southern District of New Manchester-Tower Grove Community Organi- York. zation/ACORN v. Board of Governors, filed Central Bank v. Board of Governors, filed Oc- September 1978, U.S.C.A. for the District of tober 1977, U.S.C.A. for the District of Co- Columbia. lumbia. Cradelv. The United States and the Reserve Bank Investment Company Institute v. Board of Goverof Philadelphia, filed July 1978, U.S.D.C. for nors, filed September 1977, U.S.C.A. for the the Eastern District of Pennsylvania. District of Columbia. Beckley v. Board of Governors, filed July 1978, BankAmerica Corporation v. Board of Gover- U.S.D.C. for the Northern District of Illinois. nors, filed May 1977, U.S.C.A. for the Northern Independent Bankers Association of Texas v. First District of California. National Bank in Dallas, et al., filed July 1978, BankAmerica Corporation v. Board of Gover- U.S.C.A. for the Northern District of Texas. nors, filed May 1977, U.S.C.A. for the Ninth Mid-Nebraska Bancshares, Inc. v. Board of Gov- Circuit. ernors, filed July 1978, U.S.C.A. for the Dis- National Automobile Dealers Association, Inc. v. trict of Columbia. Board of Governors, filed November 1976, NCNB Corporation v. Board of Governors, filed U.S.C.A. for the Distrcit of Columbia. June 1978, U.S.C.A. for the Fourth Circuit. Memphis Trust Company v. Board of Governors, NCNB Corporation v. Board of Governors, filed filed February 1976, U.S.D.C. for the Western June 1978, U.S.C.A. for the Fourth Circuit. District of Tennessee Ellis Banking Corporation v. Board of Governors, First Lincolnwood Corporation v. Board of Govfiled May 1978, U.S.C.A. for the Fifth Circuit. ernors, filed February 1976, U.S.C.A. for the United States League of Savings Associations v. Seventh Circuit. Board of Governors, filed May 1978, U.S.D.C. Roberts Farms, Inc. v. Comptroller of the Curfor the District of Columbia. rency, et al., filed November 1976, U.S.D.C. Hawkeye Bancorporation v. Board of Governors, for the Southern District of California. filed April 1978, U.S.C.A. for the Eighth Cir- Florida Association of Insurance Agents, Inc. v. cuit. Board of Governors, and National Association Citicorp v. Board of Governors, filed March 1978, of Insurance Agents, Inc. v. Board of Gover- U.S.C.A. for the Second Circuit. nors, filed August 1975, actions consolidated in Security Bancorp and Security National Bank v. U.S.C.A. for the Fifth Circuit. Board of Governors, filed March 1978, David R. Merrill, et al. v. Federal Open Market U.S.C.A. for the Ninth Circuit. Committee of the Federal Reserve System, filed Michigan National Corporation v. Board of Gov- May 1975, U.S.D.C. for the District of Columernors, filed January 1978, U.S.C.A. for the bia. Sixth Circuit. Bankers Trust New York Corporation v. Board Wisconsin Bankers Association v. Board of Gov- of Governors, filed May 1973, U.S.C.A. for the ernors, filed January 1978, U.S.C.A. for the Second Circuit. District of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

989 Announcements PRICING FOR CERTAIN opportunity to develop competing automated FEDERAL RESERVE SERVICES clearing and settlement services in the private sector. The Board of Governors on November 17, 1978, Before a final decision is made on pricing, the approved for transmission to the Congress a pre- Federal Reserve will consider the advisability of liminary schedule of prices for Federal Reserve establishing different prices for each zone in some check and automated clearinghouse services. Federal Reserve districts. The tentative schedule was developed by the Board and the 12 Federal Reserve Banks as part of a comprehensive plan to provide greater com- COMMUNITY REINVESTMENT ACT: petitive equality among financial institutions. The Examination Procedures prices will not be implemented until effective steps have been taken to alleviate the burden of mem- Federal regulators of banks and thrift institutions bership in the Federal Reserve System. have made public the procedures developed by an Pricing schedules for other Federal Reserve interagency task force for examination of finanservices, such as the shipment of coin and cur- cial institutions covered under the new Community rency, wire transfers of funds, and the safekeeping Reinvestment Act (CRA) and regulations. of securities, are under consideration. The CRA became effective November 6. It is The pricing of Federal Reserve services is part intended to encourage Federally insured commerof an over-all effort to modernize the role of the cial banks, mutual savings banks, and savings and Federal Reserve in the Nation's financial system loan associations to help meet the credit needs of and the relationship of financial institutions, in their entire communities, including low- and general, to the Federal Reserve. moderate-income neighborhoods, while preserving This program has been under active consid- the flexibility needed to operate safely and eration by the Congress since July 1978 when the soundly. Board submitted its legislative proposals. These The Federal Home Loan Bank Board supervises proposals included a statement of the guidelines savings and loan associations, the Federal Deposit that underlie the development by the Federal Re- Insurance Corporation supervises mutual savings serve of a system of prices for its services. banks and State-chartered commercial banks that The pricing of check collection services sug- are not members of the Federal Reserve System, gested in the schedule is based on the volume of the Federal Reserve supervises State-chartered check clearings by the Federal Reserve in the first member banks, and the Comptroller of the Curhalf of 1978. The prices are meant to recoup direct rency supervises national banks. The examination and indirect costs of providing such services. In procedures developed by the staffs of the four addition, adjustments totaling 11 per cent of these agencies, working together, will be closely monicosts have been added to reflect additional costs tored and altered if necessary in the light of expethat would be borne in the private sector. These rience with the procedures. adjustments include capital costs, taxes, an allowance for dividends, and provision for reserve. Prices for automated clearing and settlement REGULATION K: Revisions services have been calculated to be competitive with check prices. Establishment of prices for The Board of Governors has announced revisions automated clearinghouse services at this level is of its Regulation K (Corporations Engaged in intended to encourage banks and their customers Foreign Banking and Financing under the Federal to take advantage of the potentially lower cost of Reserve Act) to conform to certain provisions of electronic funds transfers as compared with the the new International Banking Act. cost of payments by check, while still affording The International Banking Act (IBA), signed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 990 Federal Reserve Bulletin • December 1978 into law September 17, 1978, for the first time taken and planned by the three agencies to implemakes the operations of foreign banks in the ment the International Banking Act of 1978. United States, through their branches, agencies, and lending companies, subject to Federal law in a manner similar to domestic banks. STATEMENT The act assigns new responsibilities for the activities of foreign banks in the United States to This statement has been prepared in consultation the Comptroller of the Currency, the Federal De- with and on behalf of the Comptroller of the posit Insurance Corporation, and the Federal Re- Currency, the Federal Deposit Insurance Corporaserve Board. The three agencies have formed an tion, and the Federal Reserve Board. interagency task force to implement these respon- On September 17, 1978, the President signed sibilities. into law the International Banking Act of 1978, The Board announced that: Public Law 95-369. Under this act foreign banks 1. It is revising its Regulation K to remove the operating in the United States through branches, 10 per cent minimum reserve requirement that has agencies, or commercial lending companies are to applied to domestic deposits of Edge Act corpora- be subject to Federal supervision and regulation tions (U.S. corporations that banks may establish, in a manner similar to domestic banks. The act under a provision of the Federal Reserve Act— is a significant step toward applying the principle Sec. 25(a), to engage in foreign banking and of national treatment, or nondiscrimination, to finance). Edge corporations will, instead, under foreign banks operating in the United States. the International Banking Act and Regulation K, Although certain aspects of the act are selfbe subject to the same reserve requirements on implementing, others require administrative action their domestic deposits as apply to member banks. by either the Board of Governors of the Federal This amendment will be effective with the re- Reserve System, the Secretary of the Treasury, serve computation period beginning November 16, the Comptroller of the Currency, or the Federal 1978. The new level of required reserves must be Deposit Insurance Corporation. The Board, the maintained beginning with the week ending De- Comptroller, and the FDIC have primary responcember 6, 1978. sibility for implementing the act and have estab- 2. The Board is advising the Reserve Banks to lished a group to coordinate their efforts. Such a accept applications by foreign banks for the for- coordinated effort is aimed at establishing a unimation of Edge corporations and is revising the form system of Federal examination and supervirelevant application form (FR 151) to conform to sion for U.S. offices of foreign banks. The folprovisions of the IBA by authorizing foreign lowing information is provided to address certain banks, with the approval of the Board, to own questions that have been raised by organizations a majority of the shares of an Edge corporation subject to the act concerning their responsibilities and by removing the requirement that only U.S. between the time of the act becoming law and the citizens may be directors of Edge corporations. issuance of implementing regulations by the agen- The act also authorizes the Board, after consul- cies. tation with State bank supervisors, to impose reserve requirements and interest rate limitations on 1. Reserve requirements on Edge corporations. branches and agencies of large foreign banks. The The act amends section 25(a) of the Federal Re- Board expects to commence such consultations in serve Act, 12 U.S.C. 611 (the "Edge Act"), by the near future. Following these consultations, and removing the 10 per cent minimum reserve reprior to the imposition of any reserve requirements quirement on the domestic deposits of an Edge and interest rate limitations, proposed regulations corporation. The Board has amended its Regulawill be published for comment. tion K, 12C.F.R. 211, to conform to the removal of the statutory minimum reserve requirement. Domestic deposits of an Edge corporation will STATEMENT: International continue to be subject to the same reserve requirements as a member bank. Banking Act of 1978 The act also requires that the Board undertake The following statement by the Comptroller of the a general revision of Regulation K within a statu- Currency, the Federal Deposit Insurance Corpora- torily prescribed time frame. The Board is protion, and the Board of Governors indicates actions ceeding with that revision in light of the act's Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 991 amendment of the Edge Act with respect to the state Federal branch of a foreign bank where the purposes and powers of Edge corporations. establishment of branches is permitted by State law and the foreign bank enters into an agreement with 2. Reserve requirements for branches and the Board to receive only deposits permissible for agencies of foreign banks. The act subjects Federal an Edge corporation. The Comptroller's office is branches and agencies of foreign banks with total currently formulating appropriate regulations and worldwide consolidated bank assets in excess of procedures to implement the act. Those regulations $1 billion to Federal Reserve reserve requirements should be published for comment prior to Deand interest rate limitations. In addition, the act cember 31, 1978. Applications for Federal authorizes the Board to impose reserve require- branches and agencies received prior to the adopments and interest rate limitations on State tion of final regulations will be acknowledged and branches and agencies of foreign banks after con- will be held for consideration subject to the final sultation and cooperation with State bank supervi- regulations. sory authorities. The Board expects to commence the consultative process with appropriate State 5. Deposit insurance for branches of foreign bank supervisory authorities in the near future. banks. Under the act, no foreign bank may estab- After consultation, any proposed regulations to lish or operate a Federal branch that receives subject State branches and agencies to reserve and deposits of less than $100,000 without obtaining interest rate requirements will be published for Federal deposit insurance. State branches, in comment. States that require deposit insurance for Statechartered banks, that receive deposits of less than 3. Ownership of Edge corporations by foreign $100,000 must be insured. An exemption from banks. The act amends the Edge Act to permit mandatory deposit insurance may be granted by foreign banks with the approval of the Board to the FDIC in the case of a State-licensed branch, acquire a majority of the shares of an Edge cor- or by the Comptroller of the Currency in the case poration. The act also permits non-U.S. citizens of a Federal branch, if the branch is not engaging to serve as directors of an Edge corporation. in domestic retail deposit activity. Foreign bank Foreign banks that seek to organize an Edge cor- branches that are not subject to mandatory insurporation or to acquire a majority of the shares of ance may voluntarily apply for FDIC insurance an Edge corporation may file an application in coverage. letter form with the Federal Reserve Bank of the A branch established prior to the date of enactdistrict in which the foreign bank's U.S. banking ment must obtain deposit insurance by September activities are principally conducted or, if not cur- 17, 1979, if the branch is subject to the mandatory rently conducting banking operations in the United insurance provisions. A branch established after States, with the Federal Reserve Bank of the the date of enactment is immediately subject to district in which the Edge corporation is, or is to the act's provisions. Procedures and forms to be be, located. Application procedures and informa- used in applying for deposit insurance are being tion requirements will, to the extent possible, be developed and are expected to be available at an the same as for applications by domestic institu- early date. In the interim, applications may be filed tions to organize Edge corporations. In this con- in letter form. Applications for Federal deposit nection, the Board has revised its form F.R. 151 insurance received prior to the adoption- of final (Articles of Association of an Edge Corporation) regulations will be acknowledged and will be held to conform to the changes in the Edge Act. Copies for consideration subject to the final regulations. of the revised form will be available at the Reserve Banks. 6. Registration with the Federal Reserve. The act subjects any foreign bank that operates a 4. Licensing of Federal branches and Federal branch, agency, or commercial lending company agencies. The act authorizes the Comptroller of in the United States to provisions of the Bank the Currency to license and supervise Federal Holding Company Act in the same manner and branches or agencies in any State in which the to the same extent as bank holding companies. parent foreign bank is not operating a State branch Applying section 5 of the Bank Holding Company or agency and in which the establishment of a Act to foreign banks subject to the act requires foreign branch or agency is not prohibited by State that those banks register with the Board. The law. The Comptroller also may license an inter- Board is in the process of drafting a registration Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 992 Federal Reserve Bulletin • December 1978 form suitable for this purpose. When completed, Cross-border and cross-currency loans are those these forms will be available at the Federal Re- most closely associated with country risk; they serve Banks. totaled $200 billion on the reporting date. About 42 per cent of such foreign lending was accounted 7. Registration of representative offices. The for by claims on residents of Switzerland and the act also requires foreign banks that maintain of- Group of Ten (G-10)1 developed countries. Anfices, other than branches or agencies, in the other 33 per cent represented loans to residents United States to register with the Secretary of the of "other developed countries," "oil exporting Treasury by March 16, 1979, or, after that date, countries," and "offshore banking centers."2 upon establishment of such an office. Procedures Cross-border and cross-currency credits to resiand forms for registration are being developed and dents of less developed countries that are not should be available before year-end. Foreign banks oil exporters amounted to approximately $49 bilare not expected to register with the Secretary of lion, or some 25 per cent of the total. the Treasury until such forms are available. In addition, the banks reported $51 billion in local currency credits that were held by their offices in foreign countries to residents of the COUNTRY EXPOSURE country in which the office was located. An example would be deutsche mark credits to German LENDING SURVEY residents held by the German branch of the re- The results of a survey of foreign lending by large porting U.S. banks. To a large extent, these local U.S. banks during the first half of 1978 were made currency claims were matched by $44 billion in public by the Comptroller of the Currency, the local currency liabilities due to local residents. Board of Governors, and the Federal Deposit In- Approximately 75 per cent of these claims were surance Corporation on December 7, 1978. on residents of Switzerland and the G-10 coun- The survey, conducted semiannually, covers tries. credits to (claims on) foreign residents held at all domestic and foreign offices of 124 U.S. banking MATURITIES organizations. In addition to information on types of loans, loan maturities, types of borrowers, and About two-thirds of the reported cross-border and loan guarantees, the survey provides information cross-currency credits had a maturity of under one on commitments to provide funds to foreigners. year. Only $14 billion in credits had a maturity The survey data are given on a country-by-country in excess of 5 years. Short-term credits were basis. especially prominent in the G-10 countries and the The results are discussed below. offshore banking centers where $86 billion out of $108 billion total credits matured in less than one year. This heavy concentration of short-term cred- GENERAL its reflects the large volume of interbank lending The data indicate that in the first half of 1978 there in these countries. Most such placements of dewas very little growth in U.S. bank credits ex- posits are for very short periods. tended to foreigners. Cross-border and non-local For most other groups of countries, short-term currency claims increased only $6 billion from credits accounted for about half of total credits, $194 to $200 billion, an annual rate of growth although the proportion varied significantly among of only 6 per cent. In addition, local currency individual countries. lending by foreign offices of U.S. banks increased $2 billion to a total of $51 billion. TYPE OF BORROWER With respect to the type of customer, business with other banks accounted for the largest amount, TYPES OF LOANS equaling $100 billion. This was followed by pri- The information gathered in the survey concen- 1 The G-10 countries are: Belgium, Canada, France, Federal trated on lending data from a bank's offices in one Republic of Germany, Italy, Japan, Netherlands, Sweden, country to residents of another country or lending United Kingdom, and the United States. 2 Off-shore banking centers are located in countries where in a currency other than that of the borrower's— multinational banks conduct a large international money market known as cross-border or cross-currency loans. business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 993 vate nonbank sector lending totaling $62 billion to report such contingent claims only when the and loans to the public sector amounting to $37 bank had a legal obligation to provide funds. The billion. This last category includes foreign central amounts reported total $55 billion; 75 per cent governments, their political subdivisions and of that total is in the private sector, including banks. agencies, foreign central banks, and commercial nonbank enterprises owned by government. This distribution varied significantly from country to USE OF THE DATA: Comparison with country. Here also, most of the credits to banks Earlier Surveys were to those located in the G-10 countries and the offshore banking centers. The June 1978 survey is fully comparable to the December 1977 survey, for which data were re- GUARANTEES leased on June 8, 1978. However, it is not fully Information is provided on the cross-border and comparable to the June 1977 survey because adcross-currency credits that are guaranteed by resi- justments were made to the form and its instrucdents of another country. Credits are reallocated tions subsequent to that date, and certain deviafrom the country of residence of the borrower to tions from the instructions that were permitted in another country by two methods. the June 1977 version were not permitted this time First, credits to a bank branch located in one or in December 1977. country when the head office is located in another country are allocated to the country of the head office. Since a branch is legally a part of the parent, REGULATION Z: Deferred Action credits to a branch are treated as being guaranteed by the head office. The Board on November 17, 1978, determined to make no further amendments of its Regulation Z Second, credits to a borrower in one country (Truth in Lending) except when action is unavoidthat are formally guaranteed by a resident of anable, pending completion of a comprehensive reother country are allocated to the latter country. view by the Board of the regulation. These reallocations are thought to provide a better approximation of country exposure in the banks' The Board's decision indefinitely deferred furportfolios than the unadjusted figures. ther action on the following: Most of the reallocations are accounted for by 1. Four proposed simplifying amendments to the transfer of credits to branches (and, where Regulation Z published for comment in May 1977 guaranteed, subsidiaries) of banks to their head to simplify disclosures in credit transactions of offices ($40 billion out of $51 billion). In general, itemization of the finance charge, of downpaythe reallocations primarily affected the offshore ments, and of the exclusion of certain fees from banking centers and some of the developed coun- the finance charge, as well as of the method of tries. For example, credits to the offshore banking computing unearned finance charges in cases of centers decreased from $25 billion to $6 billion prepayment. and claims on the United Kingdom decreased from 2. A request by Union Planters National Bank $34 billion to $19 billion. For most less developed of Memphis to amend the regulation with respect countries, a relatively small portion of credits is to an overdraft checking program the bank wishes externally guaranteed. The total shown for credits to sponsor. to foreigners by country of guarantor is about $175 3. Consideration of the Truth in Lending rebillion, or $25 billion less than the total for credits sponsibilities of a purchaser of retail instalment by country of borrower. This results from U.S. contracts. residents guaranteeing about $28 billion in claims 4. Any further requests to the Board for on foreign residents and foreigners guaranteeing amendments to the regulation that the Board does about $3 billion in claims on U.S. residents. not regard as requiring immediate action. COMMITMENTS TO PROVIDE TWO NEW BOARD PUBLICATIONS FUNDS FOR FOREIGNERS Improving the Monetary Aggregates: Staff Papers The survey also provided information on contin- contains certain of the research papers that had gent claims on foreigners. The banks were asked been prepared by the staff of the Board of Gover- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 994 Federal Reserve Bulletin • December 1978 nors for use of the Advisory Committee on Mone- Director in the Division of Consumer Affairs. Ms. tary Statistics. The Advisory Committee had been Geary, who joined the Board's staff in 1973, holds appointed in early 1974 to provide a technical a B.A. from Fordham University and a J.D. from evaluation of, and a report on, the quality of the Boston University Law School. monetary aggregates used by the Federal Reserve The Board has also announced the promotion in the formulation and implementation of monetary of Edward C. Ettin, Associate Director in the policy. The Committee agreed that the staff papers Division of Research and Statistics, to Deputy when published could be revised provided the final Staff Director in the Office of Staff Director for versions contain essentially the same information Monetary and Financial Policy, effective Dethat had been made available to the Committee cember 4, 1978. during the course of its deliberations. The Committee also requested further investigation of its tentative proposal for an alternative method of MEETING OF calculating Af-1, and a paper presenting this fur- CONSUMER ADVISORY COUNCIL ther work is included in the volume. Copies of the Staff Papers may be obtained from The Consumer Advisory Council met on De- Publications Services, Division of Administrative cember 6 and 7, 1978. Services, Board of Governors of the Federal Re- The Council considered legislative recomserve System, Washington, D.C. 20551. The price mendations in the consumer credit field and a draft is $4.00 per copy; in quantities of 10 or more report on a Federal Reserve System consumer sent to one address, $3.75 each. education program to improve awareness of credit costs, terms, and the use of credit. Other topics The Annual Statistical Digest, 1973-1977 is included discussion of issues involved in electronic designed as a compact source of economic—and funds transfer regulations, cost effectiveness stateespecially financial—data. The object is to lighten ments for consumer credit regulations, and a prothe burden of assembling time series by providing posal for the resolution of conflicting interpretaa single source of historical continuations of the tions of Federal consumer credit laws. statistics carried regularly in the FEDERAL RE- SERVE BULLETIN. The Digest also offers, at least REVISED REPORTS once a year, a continuation of series that formerly FOR SMALL BANKS appeared regularly in the BULLETIN, as well as certain special, irregular tables, which the BULLE- The Board of Governors has announced adoption TIN also once carried. The domestic nonfinancial of a simplified version of the reports of condition series included are those for which the Board of and income that can be used by the great majority Governors is the primary source. of State member banks and that can markedly This issue of the Digest covers, in general, the reduce their reporting burden. years 1973 through 1977. It serves to maintain Banks eligible to report on the simplified forms the historical series first published in Banking and are those that have less than $100 million in total Monetary Statistics, 1941-70, and continued with assets and no foreign offices. the first two issues of the Digest— for 1971-75 The revised reports for small banks can be used and 1972-76. in reporting for December 31, 1978. Copies of the Digest are available from Publi- The Board's simplified reports call for 40 per cations Services, Division of Administrative Serv- cent fewer reporting items for eligible banks over ices, Board of Governors of the Federal Reserve a year's time, compared with the corresponding System, Washington, D.C. 20551. The price is standard forms. The simplified reports can be used $12.00 per copy. by about 85 per cent of State member banks. If they choose, eligible banks may continue to use the standard form. The simplified reporting requirements were CHANGES IN BOARD STAFF adopted substantially unchanged from proposals The Board of Governors has announced the fol- made in October. Comment on the proposals was lowing appointment effective November 27, 1978. favorable in nearly all instances. Anne Geary, Chief Staff Attorney, as Assistant The only substantive change from the October Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 995 proposals was the restoration to the face of the under Regulation Q (Interest on Deposits) was report of condition, in response to comment re- adopted as proposed for comment in July. It would ceived, of detail on deposits by type of depositor. affect two types of time deposits: In addition, procedures for choosing among op- 1. Time deposit open account (TDOA), which tional forms of reporting were made more flexible. is a type of deposit that may provide for subse- The reports of income and condition are the quent deposits to the account that may be viewed basic financial reports required to be made, in either as resetting the maturity of the entire amount some cases semiannually, in others quarterly, by on deposit, or as having a separate and distinct all Federally insured banks to their Federal bank maturity (equal to the same maturity as the original supervisors. deposit). The reduction in the reporting burden in the 2. Notice accounts, accounts that do not have simplified basic financial reports of banks with no a specified maturity but require the depositor to foreign branches and with $100 million assets or give notice (for instance, 90 days) of intent to less results from: withdraw all or part of the account. 1. Elimination of numerous specific items from The Board is aware that many member banks separate reporting, particularly in details as to have established IRA and Keogh plan retirement loans and deposits. savings accounts as TDOA or notice accounts. 2. Reduction in the frequency (from semian- These are special time accounts in which indenually to annually) in reporting whole sections and pendently employed individuals (Keogh plan) or certain items in the report of income. persons working for companies without retirement 3. Broadening of tests of significance to exempt plans (IRA) can save for their retirement under certain items from explicit listing. special tax deferral provisions. Items have been added to both the standard and The penalty for early withdrawal of all or part the simplified reports for reporting on negotiable of a time account is reduction of the interest paid orders of withdrawal (NOW) accounts and auto- on the amount withdrawn to the passbook savings matic transfer service (ATS) accounts, and for rate (5 per cent at commercial banks) and forfeiture money market certificates of deposit. of 90 days' interest at that rate. Generally, the The revised basic reports for small banks interest forfeiture penalty on the amount withadopted by the Board are the same as those of drawn from a time account applies back to the the Comptroller of the Currency and the Federal original date of deposit of funds in the account. Deposit Insurance Corporation, except that those The revised penalty rule requires, in the case two agencies have adopted an additional reporting of early withdrawal at a member bank from: (1) schedule not required of State member banks. a notice account, that the minimum penalty apply on the amount withdrawn for a period of time no greater than the required notice period; and (2) a TDOA, that the penalty on the amount with- REGULATION Q: drawn apply only to the length of the maturity Amendment and Interpretation period specified for the original deposit. The original maturity period for IRA and Keogh accounts The Board of Governors lightened the penalty must be at least 3 years if minimum interest is required for early withdrawal of certain types of to be paid on such accounts. time deposits at member banks, effective De- The interpretation of Regulation Q adopted by cember 11, 1978. the Board provides that a member bank may permit The Board said that its action is expected to a depositor to withdraw interest earned on a time benefit particularly time deposits in long-term in- certificate of deposit at any time before maturity dividual retirement accounts (IRA's) and Keogh without penalty, irrespective of the basis upon plan retirement accounts, thus furthering the con- which the member bank compounds or credits the gressional aim of promoting retirement savings. interest to the depositor's account. Previously, At the same time the Board adopted, also effec- member banks had been advised that interest betive December 11, an interpretation of Regulation came part of the underlying principal deposit and, Q permitting withdrawal without penalty of inter- thus, was subject to early-withdrawal penalty reest earned on time deposits at member banks. quirements of Regulation Q when that interest was The change in the early-withdrawal penalty rule credited or posted to the depositor's account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 996 Federal Reserve Bulletin • December 1978 SYSTEM MEMBERSHIP: Other pamphlets in the series explain consumer Admission of State Banks protections under Equal Credit Opportunity, Truth in Lending, Truth in Leasing, and Fair Credit The following banks were admitted to membership Billing, as well as how to file a consumer credit in the Federal Reserve System during the period complaint with the Federal Reserve System. November 16, 1978, through December 15, 1978: Copies of "If You Use A Credit Card" and other consumer pamphlets may be obtained singly Colorado or in bulk free of charge from the Board of Aurora Southeast State Bank of Aurora Governors in Washington or from any of the 12 Virginia Federal Reserve Banks. Keysville State Bank of Keysville CHART BOOK NEW CONSUMER PAMPHLET Beginning 1979 the Federal Reserve Chart Book will be issued four times a year in February, May, "If You Use A Credit Card," the latest in a series August, and November. The subscription price, of consumer education pamphlets, is now available including one issue of the historical supplement, for distribution. will be $7.00 a year or $2.00 a copy in the United The pamphlet explains credit-card protections States, its possessions, Canada, and Mexico. under Federal law, including how to limit risk if Elsewhere the price will be $10.00 a year or $3.00 a card is lost or stolen and what to do if goods a copy. Copies may be obtained from Publications or services purchased with a credit card are not Services, Division of Administrative Services, satisfactory. It also explains how to compare Board of Governors of the Federal Reserve Syscredit-card costs. tem, Washington, D. C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

997 Industrial Production Released for publication December 15 rials increased by 0.8 per cent because of continued strength in output of basic metals and of Industrial production increased an estimated 0.7 equipment and durable consumer parts, while proper cent in November to 149.5 per cent of the duction of nondurable goods materials rose only 1967 average. Gains were widespread, but output slightly further. Output of energy materials adof consumer durable goods other than automotive vanced 0.9 per cent. products declined. The advance in total industrial production in November was somewhat stronger than in the two preceding months but close to the average monthly increase over the first 10 months of the year. The November index is 7.3 per cent above the level a year earlier. Output of consumer goods rose 0.5 per cent, due to a further sizable increase in the output of automotive products and a fairly strong gain in the production of consumer nondurable goods. Production of home goods, which is nearly onefifth of the consumer goods component of the index, declined in November for the second consecutive month because of cuts in the output of appliances and furniture. Production of business equipment is estimated to have increased 0.7 per cent in November—somewhat more than in the two preceding months, reflecting continued gains in commercial, transit, and farm equipment. Output of construction and business supplies also advanced sharply last month. Production of materials advanced strongly again F.R. indexes, seasonally adjusted. Latest figures: November. Auto sales in November. Production of durable goods mate- and stocks include imports. 1967 = 100 Percentage change from preceding month to— PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1978 1978 111111///777777 tttooo Oct." Nov.'' June July Aug. Sept. Oct. Nov. 111111///777888 Total 148.5 149.5 .7 .8 .7 .4 .5 .7 7.3 Products, total 147.3 148.2 .6 .7 .8 .3 .5 .6 6.2 Final products 144.5 145.3 .4 .8 .8 .3 .5 .6 6.1 Consumer goods 149.8 150.6 .0 .5 .5 .3 .6 .5 3.7 Durable 162.6 163.3 .2 .2 .4 -.8 1.5 .4 5.2 Nondurable 144.7 145.6 -.1 .6 .5 .8 .3 .6 3.1 Business equipment 166.9 168.1 1.0 1.2 1.0 .4 .5 .7 9.5 Intermediate products 157.4 158.6 1.4 .6 .5 .3 .4 .8 6.9 Construction supplies 156.7 157.9 1.1 .9 .8 .6 .6 .8 7.8 Materials 150.5 151.6 .9 1.0 .5 .6 .7 .7 9.1 "Preliminary. 'Estimated. NOTE.—Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1 Financial and Business Statistics CONTENTS DOMESTIC FINANCIAL STATISTICS WEEKLY REPORTING COMMERCIAL BANKS A3 Monetary aggregates and interest rates Assets and Liabilities of— A4 Factors affecting member bank reserves A20 All reporting banks A5 Reserves and borrowings of member A21 Banks in New York City banks A22 Banks outside New York City A6 Federal funds transactions of money A23 Balance sheet memoranda market banks A24 Commercial and industrial loans 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 time and savings deposits at Federally A25 Commercial paper and bankers insured institutions acceptances outstanding A10 Margin requirements A26 Prime rate charged by banks on A11 Federal Reserve open market short-term business loans transactions A26 Terms of lending at commercial banks A27 Interest rates in money and capital markets FEDERAL RESERVE BANKS A28 Stock market—Selected statistics A12 Condition and F.R. note statements A13 Maturity distribution of loan and A29 Savings institutions—Selected assets security holdings and liabilities FEDERAL FINANCE MONETARY AND CREDIT AGGREGATES A30 Federal fiscal and financing operations A13 Bank debits and deposit turnover A31 U.S. Budget receipts and outlays A14 Money stock measures and components A15 Aggregate reserves and deposits of A32 Federal debt subject to statutory member banks limitation A15 Loans and investments of all A32 Gross public debt of U.S. Treasury— commercial banks Types and ownership A33 U.S. Government marketable securities—Ownership, by maturity COMMERCIAL BANK ASSETS AND LIABILITIES A34 U.S. Government securities dealers— A16 Last-Wednesday-of-month series Transactions, positions, and financing A17 Call-date series A35 Federal and Federally sponsored credit A18 Detailed balance sheet, June 30, 1978 agencies—Debt outstanding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 2 Federal Reserve Bulletin • December 1978 SECURITIES MARKETS AND INTERNATIONAL STATISTICS CORPORATE FINANCE A54 U.S. international transactions— A36 New security issues—State and local Summary governments and corporations A55 U.S. foreign trade A37 Open-end investment companies—Net A55 U.S. reserve assets sales and asset position A56 Foreign branches of U.S. banks— A37 Corporate profits and their distribution Balance sheet data A3 8 Nonfinancial corporations—Assets and A58 Selected U.S. liabilities to foreign liabilities official institutions A3 8 Business expenditures on new plant and equipment REPORTED BY BANKS IN THE UNITED STATES: A39 Domestic finance companies—Assets and liabilities; business credit A59 Liabilities to foreigners A61 Banks' own claims on foreigners A62 Banks' own and domestic customers' REAL ESTATE claims on foreigners A40 Mortgage markets A63 Banks' own claims on unaffiliated A41 Mortgage debt outstanding foreigners A63 Liabilities to and claims on foreigners CONSUMER INSTALMENT CREDIT SECURITIES HOLDINGS AND TRANSACTIONS A42 Total outstanding and net change A43 Extensions and liquidations A64 Marketable U.S. Treasury bonds and notes—Foreign holdings and transactions FLOW OF FUNDS A64 Foreign official assets held at F.R. A44 Funds raised in U.S. credit markets banks A45 Direct and indirect sources of funds to A65 Foreign transactions in securities credit markets REPORTED BY NONBANKING CONCERNS IN DOMESTIC NONFINANCIAL STATISTICS THE UNITED STATES: A46 Nonfinancial business activity— A66 Short-term liabilities to and claims on Selected measures foreigners A46 Output, capacity, and capacity A67 Long-term liabilities to and claims on utilization foreigners A47 Labor force, employment, and unemployment INTEREST AND EXCHANGE RATES A48 Industrial production—Indexes and gross value A68 Discount rates of foreign central banks A50 Housing and construction A68 Foreign short-term interest rates A51 Consumer and wholesale prices A52 Gross national product and income SPECIAL TABLE A53 Personal income and saving A69 Sales, revenue, profits, and dividends of large manufacturing corporations INSIDE BACK COVER Guide to Tabular Presentation and Statistical Releases Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1977 1978 1978 Item Q4r Qlr Q2r Q3' Juner July Aug.r Sept.r Oct. Monetary and credit aggregates (annual rates of change, seasonally adjusted in per cent)12 Member bank reserves 1 Total 6.3 8.8 6.6 8.2 14.9 14.0 -8.2 8.1 7.6 2 Required 6.4 9.3 7.2 8.2 16.2 13.4 -7.4 7.4 8.3 3 Nonborrowed 3.8 14.4 1.1 6.2 19.0 7.6 -3.2 10.7 1.3 Concepts of money1 4 M-l 7.5 66..22 99..99 7.6 7.5 44..88 8.5 1144..11 3.7 5 M-1 + 6.8 4.9 6.9 5.3 4.0 1.5 8.7 12.2 1.8 6 M-2 8.1 6.9 7.9 8.9 7.8 8.0 10.4 12.5 7.0 7 M-3 10.6 7.7 7.8 10.1 8.4 9.4 11.7 14.0 9.9 Time and savings deposits Commercial banks: 8 Total 13.0 12.8 10.1 9.5 6.1 10.2 7.5 13.8 7.9 9 Savings 5.4 2.6 1.6 1.3 -1.6 -4.3 8.1 9.7 -1.6 10 Other time 11.6 11.4 10.5 17.3 16.0 22.5 14.2 13.6 17.7 11 Thrift institutions 2 14.4 8.9 7.6 11.6 9.2 11.2 13.9 16.0 14.2 12 Total loans and investments at commercial banks 3 9.9 9.6 12.9 11.0 6.0 16.7 5.2 9.9 9.5 1977 1978 1978 Q4 Q1 Q2 Q3 July Aug. Sept. Oct. Nov. Interest rates (levels, per cent per annum) Short-term rates 13 Federal funds4 6.51 6.76 7.28 8.09 7.81 8.04 8.45 8.96 9.76 14 Federal Reserve discount5 5.93 6.46 6.78 7.50 7.23 7.43 7.83 8.26 9.50 15 Treasury bills (3-month market yield)6 6.11 6.39 6.48 7.31 7.01 7.08 7.85 7.99 8.64 16 Commercial paper (90- to 119-day)6-7 6.56 6.76 7.16 8.03 7.85 7.83 8.39 8.98 10.14 Long-term rates Bonds: 17 U.S. Governments 7.78 8.19 8.43 8.53 8.69 8.45 8.47 8.69 8.75 18 State and local government 9 5.57 5.65 6.02 6.16 6.28 6.12 6.09 6.13 6.19 19 Aaa utility (new issue)10 8.27 8.70 8.98 8.94 9.14 8.82 8.86 9.17 9.27 20 Conventional mortgages11 9.05 9.23 9.58 9.80 9.80 9.80 9.80 9.95 10.10 1 M-l equals currency plus private demand deposits adjusted. 6 Quoted on a bank-discount basis. M-1+ equals M-l plus savings deposits at commercial banks, NOW 7 Beginning Nov. 1977, unweighted ayerage of offering rates quoted by accounts at banks and thrift institutions, credit union share draft ac- five dealers. Previously, most representative rate quoted by these dealers. counts, and demand deposits at mutual savings banks. 8 Market yields adjusted to a 20-year maturity by the U.S. Treasury. M-2 equals M-l plus bank time and savings deposits other than large 9 Bond Buyer series for 20 issues of mixed quality. negotiable certificates of deposit (CD's). i o Weighted averages of new publicly offered bonds rated Aaa, Aa, M-3 equals M-2 plus deposits at mutual savings banks, savings and and A by Moody's Investors Service and adjusted to an Aaa basis. loan associations, and credit union shares. Federal Reserve compilations. 2 Savings and loan associations, mutual savings banks, and credit 11 Average rates on new commitments for conventional first mortgages unions. on new homes in primary markets, unweighted and rounded to nearest 3 Quarterly changes calculated from figures shown in Table 1.23. 5 basis points, from Dept. of Housing and Urban Development. 4 Seven-day averages of daily effective rates (average of the rates on 12 Unless otherwise noted, rates of change are calculated from average a given date weighted by the volume of transactions at those rates). amounts outstanding in preceding month or quarter. 5 Rate for the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • December 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 Sept. Oct. Nov.? Oct. 18 Oct. 25 Nov. Nov. 8 Nov. 15 Nov. 22p Nov. 29 *» SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding.... 127,811 133,273 129,108 134,274 134,088 133,496 129,011 126,996 130,439 130,701 2 U.S. Government securities1 110,604 115,008 111,243 114,207 115,865 115,694 112,622 109,186 110,556 111,842 3 Bought outright 109,862 113,977 110,728 113,848 114,737 114,112 112,170 109,186 109,689 111,336 4 Held under repurchase agreement 742 1,031 515 359 1,128 1,582 452 867 506 5 Federal agency securities 8,323 8,353 8,109 8,354 8,388 8,391 8,009 7,932 8,343 8,060 6 Bought outright 7,958 7,940 7,928 7,941 7,938 7.937 7,932 7,932 7,932 7,918 7 Held under repurchase agreement 365 413 181 413 450 454 77 411 142 8 Acceptances 257 249 180 170 282 257 119 455 141 9 Loans 1,068 1,261 722 1,250 1,313 1,305 696 633 604 791 10 Float 5,220 5,742 6,152 7,623 5,534 4,910 4,303 6,176 8,291 7,602 11 Other Federal Reserve assets 2,339 2,660 2,702 2,671 2,707 2.938 3,261 3,068 2,190 2,265 12 Gold stock 11,670 11,660 11,645 11,656 11,655 11,655 11,652 11,642 11,642 11,642 13 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 14 Treasury currency outstanding 11,681 11,725 11,779 11,729 11,738 11,747 11,758 11,768 11,787 11,803 ABSORBING RESERVE FUNDS 15 Currency in circulation 108,022 108,872 110,927 109,259 108,912 108,927 109,828 110,775 111,242 111,882 16 Treasury cash holdings 302 303 280 317 296 289 282 278 279 305 Deposits, other than member bank reserves with F.R. Banks: 17 Treasury 11,080 14,948 8,186 15,131 15,377 15,108 11,091 8,092 6,443 6,468 18 Foreign 279 300 289 283 275 285 294 273 286 298 19 Other2 692 590 540 585 619 550 546 521 529 556 20 Other F.R. liabilities and capital 4,077 4,244 4,193 4,208 4,416 A,512 3,901 4,008 4,284 4,475 21 Member bank reserves with F.R. Banks 28,010 28,701 29,417 29,177 28,887 28,467 27,777 27,759 32,107 31,463 End-of-month figures Wednesday figures 1978 1978 Sept. Oct. Nov.f Oct. 18 Oct. 25 Nov. Nov. 8 Nov. 15 Nov. 22p Nov. 29p SUPPLYING RESERVE FUNDS 22 Reserve Bank credit outstanding 132,114 132,022 130,263 133,340 136,766 135,222 123,511 127,622 130,030 132,791 23 U.S. Government securities1 115,279 115,322 113,305 112,522 117,535 114,544 107,253 108,114 111,203 114,110 24 Bought outright 113,027 114,659 113,305 112,522 114,489 111,868 107,253 108,114 110,878 112,110 25 Held under repurchase agreement 2,252 663 3,046 2,676 325 2,000 26 Federal agency securities 8,597 8,065 7,899 8,354 9,123 8,951 7,932 7,932 8,092 8,524 27 Bought outright 7,950 7,938 7,899 7,941 7,938 7,932 7,932 7,932 7,932 7,899 28 Held under repurchase agreement 647 127 413 1,185 1,019 160 625 29 Acceptances 715 236 724 405 383 370 30 Loans 1,365 1,207 812 1,660 1,796 1,789 783 1,258 931 1,260 31 Float 3,719 4,436 5,897 8,581 4,850 6,317 3,421 8,042 7,223 6,122 32 Other Federal Reserve assets 2,439 2,756 2,350 2,636 2,738 3,216 4,122 2,276 2,198 2,405 33 Gold stock 11,668 11,655 11,642 11,655 11,655 11,655 11,649 11,642 11,642 11,642 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 11,683 11,731 11,804 11,735 11,749 11,755 11,761 11,778 11,799 11,804 ABSORBING RESERVE FUNDS 36 Currency in circulation 107,663 109,307 112,045 109,271 109,063 109,503 110,656 111,277 111,820 112,291 37 Treasury cash holdings 299 276 310 398 294 289 in 277 275 310 Deposits, other than member bank reserves with F.R. Banks: 38 Treasury 16,647 15,467 6,587 15,348 11,748 14,322 7,989 7,557 6,153 7,236 39 Foreign 325 305 379 252 257 244 249 313 285 275 40 Other2 628 531 567 554 624 573 652 448 565 479 41 Other F.R. liabilities and capital.., 4,372 4,560 4,545 4,253 4,653 4,575 3,913 4,144 A,219 4,584 42 Member bank reserves with F.R. Banks 26,830 26,260 30,577 27,954 34,831 30,425 24,484 28,327 31,395 32,363 1 Includes securities loaned—fully guaranteed by U.S. Govt, securities voluntarily held with member banks and redeposited in full with Federal pledged with F.R. Banks—and excludes (if any) securities sold and sched- Reserve Banks. uled to be bought back under matched sale-purchase transactions. NOTE.—For amounts of currency and coin held as reserves, see Table 2 Includes certain deposits of foreign-owned banking institutions 1.12. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Banks A5 1.12 RESERVES AND BORROWINGS Member Banks Millions of dollars Monthly averages of daily figures RReesseerrvvee ccllaassssiiffiiccaattiioonn 1977 1978 Dec. Mar. Apr. May June July Aug. Sept. Oct. Nov.f All member banks Reserves: 1 At F.R. Banks 27,057 27,155 27,776 27,890 27,840 28,570 28,079 28,010 28,701 29,417 2 Currency and coin 9,351 8,992 9,028 9,151 9,345 9,542 9,512 9,605 9,654 9,818 3 Total heldi 36,471 36,231 36,880 37,119 37,262 38,189 37,666 37,689 38,434 39,313 4 Required 36,297 35,925 36,816 36,867 37,125 38,049 37,404 37,614 38,222 39,516 5 Excess1 174 306 64 252 137 140 262 75 212 -203 Borrowings at F.R. Banks:2 6 Total 558 344 539 1,227 1,111 1,286 1,147 1,068 1,261 722 7 Seasonal 54 47 43 93 120 143 188 191 221 185 Large banks in New York City 8 6,244 6,276 6,247 6,315 6,341 6,606 6,334 6,182 6,428 6,529 9 Required 6,279 6,193 6,320 6,236 6,376 6,581 6,290 6,251 6,349 6,658 10 -35 83 -73 79 -35 25 44 -69 79 -129 11 Borrowings2 48 21 61 113 54 129 58 78 157 48 Large banks in Chicago 12 Reserves held 1,593 1,629 1,670 1,697 1,668 1,708 1,648 1,655 1,672 1,740 13 Required 1,613 1,620 1,686 1,669 1,670 1,707 1,646 1,650 1,649 1,764 14 Excess -20 9 -16 28 -2 1 2 5 23 -24 15 Borrowings2 26 11 11 19 20 20 3 35 14 3 Other large banks 16 Reserves held 13,993 13,729 14,135 14,106 14,250 14,553 14,502 14,564 14,862 15,392 17 13,931 13,662 14,077 14,079 14,225 14,569 14,423 14,541 14,867 15,435 18 Excess 62 67 58 27 25 -16 79 23 -5 -43 19 Borrowings2 243 92 249 500 536 499 417 363 408 195 All other banks 20 Reserves held 14,641 14,597 14,828 15,001 15,003 15,322 15,182 15,288 15,472 15,636 21 Required 14,474 14,450 14,733 14,883 14,854 15,192 15,045 15,172 15,357 15,659 22 167 147 95 118 149 130 137 116 115 -23 23 Borrowings2 241 220 218 595 501 638 669 592 682 476 Weekly averages of daily figures for weeks ending— 1978 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 Nov. 1 Nov. 8 Nov. 15 Nov. 22p Nov. 29 p All member banks Reserves: 24 At F.R. Banks 28,525 28,890 27,890 29,177 28,887 28,467 27,777 27,759 32,107 31,463 25 Currency and coin 9,842 9,904 10,031 9,500 9,101 9,861 10,071 10,132 9,178 9,855 26 Total held i 38,441 38,869 37,997 38,756 38,068 38,408 37,927 37,974 41,362 41,392 27 Required 38,218 38,746 37,647 38,875 37,749 38,295 37,586 37,729 41,307 41,352 28 Excess i 223 123 350 -119 319 113 341 245 55 40 Borrowings at F.R. Banks:2 29 Total 1,560 1,286 1,239 1,250 1,313 1,305 696 633 604 791 30 Seasonal 204 208 205 219 235 233 191 188 183 180 Large banks in New York City 31 Reserves held 6,249 6,586 6,225 6,650 6,100 6,286 6,240 6,222 7,152 6,762 32 Required 6,307 6,551 6,209 6,730 6,026 6,313 6,199 6,257 7,162 6,980 33 Excess -58 35 16 -80 74 -27 41 -35 -10 -218 34 Borrowings2 113 174 263 226 75 99 102 4 31 Large banks in Chicago 35 Reserves held 1,693 1,681 1,613 1.741 1,569 1.659 1,621 11,,660055 1,972 1,950 36 Required 1,618 1,677 1,612 1.742 1,569 1.660 1,603 11,,558877 1,998 1,862 37 Excess 75 4 1 -1 18 1188 -26 88 38 Borrowings2 4 6 3 36 12 10 9 2 6 Other large banks 39 Reserves held 14,892 15,045 14,850 14,901 14,868 14,888 14,740 14,812 15,804 16,206 40 Required 14,799 15,091 14,652 15,038 14,738 14,877 14,621 14,758 16,084 16,263 41 Excess 93 -46 198 -137 130 119 54 -280 -57 42 Borrowings2 727 424 435 397 428 349 191 137 111 237 All other banks 43 Reserves held 15,607 15,557 15,309 15,464 15,531 15,575 15,326 15,335 15,876 16,053 44 Required 15,494 15,427 15,174 15,365 15,416 15,445 15,163 15,127 16,063 16,247 45 Excess.... 113 ,130 135 99 115 130 163 208 -187 -194 46 Borrowings2 716 682 538 591 798 847 496 394 426 517 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 \yhen 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 Nonfinancial Statistics • December 1978 1.13 FEDERAL FUNDS TRANSACTIONS Money Market Banks Millions of dollars, except as noted 1978, week ending— TTyyppee Oct. 4 Oct. 11 Oct. 18 Oct. 25 Nov. 1 Nov. 8 Nov. 15 Nov. 22 Nov. 29 Total, 46 banks Basic reserve position 1 Excess reserves1 65 182 -103 r84 16 111 141 -31 75 LESS: 2 Borrowings at F.R. Banks 261 344 404 227 205 59 106 38 168 3 Net interbank Federal funds transactions 1155,,337755 1188,,553366 1177,,447700 1133,,774477 1144,,118877 17,146 17,945 1166,,993366 15,861 EQUALS: Net surplus, or deficit (-): 4 Amount --1155,,557711 --1188,,669988 --1177,,997777 r —13,890 --1144,,337766 --1177,,009944 --1177,,991100 -17,004 --1155,,995544 5 Per cent of average required reserves 94.7 118.6 108.0 89.0 89.5 108.6 113.0 94.7 90.0 Interbank Federal funds transactions Gross transactions: 6 Purchases 23,623 25,677 24,696 22,043 22,604 24,484 24,690 24,077 23,743 7 Sales 8,248 7,141 7,226 8,296 8,417 7,339 6,744 7,141 7,881 8 Two-way transactions2 5,601 5,930 5,973 6,446 5,521 5,676 5,506 55,,333366 5,580 Net transactions: 9 Purchases of net buying banks... 18,022 19,747 18,722 15,598 17,083 18,808 19,184 18,742 18,162 10 Sales of net selling banks 2,647 1,211 1,253 1,850 2,896 1,663 1,239 1,806 2,301 Related transactions with U.S. Government securities dealers 11 Loans to dealers 3 3,222 3,397 3,159 2,704 2,986 4,207 3,654 4,123 3,298 12 Borrowing from dealers4 2,186 1,505 1,661 2,133 2,241 1,646 1,270 2,005 1,714 13 1,037 1,892 1,498 572 745 2,561 2,384 2,118 1,584 8 banks in New York City Basic reserve position 1144 Excess reserves1 3344 7766 --4455 2288 4455 5 4 —1 LESS: 15 Borrowings at F.R. Banks 117744 119966 222266 4455 6699 110022 2211 16 Net interbank Federal funds transactions 55,,003322 66,,117722 44,,664477 3,122 3,774 44,,226677 44,,666666 22,,552233 22,,333366 EQUALS: Net surplus, or deficit (-): 17 Amount --55,,117733 -6,292 --44,,991188 -3,139 -3,843 --44,,222211 --44,,776633 --22,,551199 -2,370 18 Per cent of average required 87.0 112.4 80.7 57.7 67.5 75.3 84.6 39.0 37.6 Interbank Federal funds transactions Gross transactions: 19 5,953 7,238 5,813 4,964 5,404 5,595 5,593 4,785 4,687 20 Sales 921 1,067 1,166 1,842 1,630 1,328 927 2,262 2,351 21 Two-way transactions2 921 1,067 1,024 1,606 1,090 11,,330033 927 11,,224466 1,441 Net transactions: 22 Purchases of net buying banks... 5,032 6,172 4,789 3,358 4,314 4,292 44,,666666 3,538 3,246 2233 Sales of net selling banks 114422 223366 554400 2255 11,,001166 991111 Related transactions with U.S. Government securities dealers 24 Loans to dealers 3 1,968 2,148 1,717 1,610 1,773 2,718 2,249 2,524 1,864 25 Borrowing from dealers4 491 547 564 556 510 454 496 633 759 26 Net loans 1,477 1,602 1,152 1,054 1,263 2,264 1,753 1,891 1,106 38 banks outside New York City Basic reserve position 27 31 106 -59 r56 16 65 136 -34 81 LESS: 28 Borrowings at F.R. Banks 86 148 111 182 137 59 4 38 141 29 Net interbank Federal funds transactions 10,343 1122,,336644 1122,,882233 1100,,662255 1100,,441133 1122,,887799 13,279 1144,,441133 1133,,552255 EQUALS: Net surplus, or deficit (-): 30 Amount --1100,,339988 --1122,,440066 --1133,,005599 ''--1100,,775511 --1100,,553344 --1122,,887733 --1133,,114477 --1144,,448855 -13,585 31 Per cent of average required 99.1 121.9 123.9 105.8 101.5 126.9 128.5 125.9 118.8 Interbank Federal funds transactions Gross transactions: 32 Purchases 17,670 18,439 18,883 17,080 17,200 18,889 19,097 19,293 19,056 33 Sales 7,327 6,075 6,060 6,454 6,786 6,010 5,818 4,879 5,530 34 Two-way transactions2 4,680 4,864 4,950 4,840 44,,443311 44,,337733 AA,,551199 44,,008899 44,,114400 Net transactions: 35 Purchases of net buying banks... 12,990 13,575 13,933 12,240 12,769 14,517 14,518 15,203 14,916 36 Sales of net selling banks 2,647 1,211 1,110 1,614 2,356 1,639 1,239 790 1,391 Related transactions with U.S. Government securities dealers 37 Loans to dealers3 1,255 1,249 1,442 1,095 1,212 1,489 1,405 1,598 1,434 38 Borrowing from dealers4 1,695 958 1,096 1,577 1,731 1,192 774 1,372 956 39 Net loans -440 291 346 -482 -518 297 631 226 478 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— TTyyppee | Oct. 4 Oct. 11 Oct. 18 Oct. 25 Nov. 1 Nov. 8 Nov. 15 Nov. 22 Nov. 29 5 banks in City of Chicago Basic reserve position 40 Excess reserves1 31 15 6 13 13 1 8 20 41 LESS: 41 Borrowings at F.R. Banks... 33 42 Net interbank Federal funds transactions 4,992 5,163 5,297 3,911 4,965 5,685 5,713 6,194 6,059 EQUALS: Net surplus, or deficit (-): 43 Amount -4,960 -5,148 -5,323 -3,898 -4,951 -5,684 -5,705 -6,174 -6,017 44 Per cent of average required reserves 316.5 342.2 325.7 266.1 318.5 375.4 380.9 331.3 344.4 Interbank Federal funds transactions Gross transactions: 45 Purchases 6,147 6,395 6,749 5,242 6,348 6,703 7,065 7,363 7,134 46 Sales 1,156 1,232 1,452 1,331 1,384 1,018 1,352 1,169 1,075 47 Two-way transactions2 1,156 1,232 1,452 1,331 1,384 1,018 1,352 1,169 1,075 Net transactions: 48 Purchases of net buying banks.. 4,992 5,163 5,297 3,911 4,964 5,685 5,713 6,194 6,059 49 Sales of net selling banks Related transactions with U.S. Government securities dealers 50 Loans to dealers 3 344 208 334 77 79 191 124 214 236 51 Borrowing from dealers4 325 189 241 396 201 224 56 173 229 52 Net loans 19 19 93 -319 -122 -33 68 41 7 33 other banks Basic reserve position 5 3 Excess reserves1 91 -65 r43 3 64 129 -54 LESS: 54 Borrowings at F.R. Banks... 86 148 145 182 137 59 4 38 55 Net interbank Federal funds transactions 5,351 7,201 7,527 6,714 5,449 7,194 7,566 8,220 EQUALS: Net surplus, or deficit (-): 56 Amount -5,438 -7,258 -7,736 -6,853 -5,583 -7,189 -7,441 -8,311 57 Per cent of average required reserves 60.9 83.7 86.8 r78.8 63.2 83.3 85.0 86.2 Interbank Federal funds transactions Gross transactions: 58 Purchases 11,522 12,044 12,135 11,838 10,852 12,186 12,032 11,930 59 Sales 6,171 4,843 4,608 5,124 5,403 4,992 4,466 3,710 60 Two-way transactions2 3,524 3,631 3,498 3,509 3,047 3,355 3,227 2,920 Net transactions: 61 Purchases of net buying banks.. 7,998 8,412 8,637 8,329 7,805 8,832 8,805 9,009 62 Sales of net selling banks 2,647 1,211 1,110 1,614 2,356 1,638 1,239 790 Related transactions with U.S. • Government securities dealers 63 Loans to dealers 3 911 1,041 ,108 1,018 1,134 ,299 1,282 ,384 64 Borrowing from dealers4 1,370 769 855 1,181 1,530 968 718 ,199 65 Net loans -459 272 253 -163 -396 330 564 186 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 • December 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 13a1 Bank Regular rate Special rate3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 11/30/78 date rate 11/30/78 date rate 11/30/78 date rate 11/30/78 date rate Boston 91/2 11/2/78 8V4 10 11/2/78 9 101/4 11/2/78 9i/4 121/2 11/2/78 II1/2 New York 91/2 11/1/78 81/2 10 11/1/78 9 101/4 11/1/78 9V4 121/2 11/1/78 IH/2 Philadelphia 91/2 11/2/78 81/2 10 11/2/78 9 101/4 11/2/78 91/2 121/2 11/2/78 1H/4 Cleveland 91/2 11/2/78 81/2 10 11/2/78 9 10V4 11/2/78 91/2 121/4 11/2/78 IH/2 Richmond....... 91/4 11/2/78 81/2 10 11/2/78 9 loi/4 11/2/78 91/2 121/4 11/2/78 IH/2 A C t h l i a c n a t g a o 9 91 * / 4 2 1 1 1 1 / / 2 3/ / 7 7 8 8 8 81 1 / / 2 2 1 1 0 0 1 11 1 / / 3 2 / / 7 7 8 8 9 9 1 10 0 1 % /2 1 1 1 1 / / 3 2 / / 7 7 8 8 9 91 i/ / 4 2 1 12 2 V i/2 4 1 1 1 1 / / 2 3/ / 7 7 8 8 I 1 H H / /4 2 St. Louis 91/2 11/2/78 81/2 10 11/2/78 9 101/2 11/2/78 91/2 121/2 11/2/78 1H/4 Minneapolis 91/2 11/1/78 81/2 10 11/1/78 9 101/2 11/1/78 91/2 121/2 11/1/78 1H/4 Kansas City 91/2 11/2/78 8i/4 10 11/2/78 9 101/2 11/2/78 91/2 121/2 11/2/78 1H/4 Dallas 9i/4 11/2/78 81/4 10 11/2/78 9 101/2 11/2/78 91/4 121/2 11/2/78 1H/6. San Francisco.... 91/2 11/2/78 81/2 10 11/2/78 9 101/2 11/2/78 91/2 12V4 11/2/78 1H/4 Range of rates in recent years5 Range F.R. Range F.R. Range F.R. Effective date (or level)— Bank Effective date (or level)— Bank Effective date (or level)— Bank All F.R. of All F.R. of All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1970 5% 51/2 1973—May 1 4 1 . . 53 s / y 44- 6 6 5 3/4 1976—Jan. 2 1 3 9 51/ 5 4 1 - / 6 2 5 5 * * 4 4 1971—Jan. 8 5V4-5X 5% 18. 6 Nov. 22 51/4-51/2 51/4 15 5V4 5% June 11. 6-6 *4 61/4 26 514 5V4 19 5-5V4 51/4 15. 61/2 6*4 2 2 2 9 5 5 - 5 y 4 5 5 J A u u ly g . 1 2 4 . . 7 7 -7*4 7 7 * 4 1977—Aug. 3 3 1 0 5 51 1 / 4 4 - -5 5 3 3 / 4 4 5 5 1 3 / / 4 4 Feb. 13 4V4-5 5 23. 71/2 7*4 Sept. 2 53/4 53/4 19 4*A 4V4 Oct. 26 6 6 July 2 1 3 6 4V4-5 5 5 1974—Apr. 2 30 5 . . 71/ 8 4 -8 1978—Jan. 9 6-61/2 61/2 Nov 11 4V4-5 5 Dec. 9. 7V4-8 13/4 20 61/2 61/4 Dcc. 1 1 3 9 4y 4 2 V -4 4 34 4 4 % % 16. m 13/4 May 1 1 2 1 61/ 7 4 -7 7 7 17 4VL-4V4 4% 1975—Jan. 6. 714-734 13/4 July 3 7-714 714 2 4 4% 4*4 10. 714-734 71/4 10 71/4 71/4 24. m 1V4 Aug. 21 13/4 13/4 1973—Jan. 15 5 5 Feb. 5. 6V4-1V4 63/4 Sept. 22 8 8 Feb. 26 5% 7. 6% 6V4 Oct. 16 8-81/2 81/2 Mar. 2 5% 5Vt Mar. 10, 61/4-63^ 6V4 20 8V4 8V4 Apr. 23 5*4 14, 61/4 6V4 Nov. 1 8*4-9*4 91/4 May 16 6-6 y4 6 3 91/2 91/4 23, 6 6 In effect Nov. 30, 1978. .. 91/2 9i/4 1 Discounts of eligible paper and advances secured by such paper or by 4 Advances to individuals, partnerships, or corporations other than U.S. Govt, obligations or any other obligations eligible for F.R. Bank member banks secured by direct obligations of, or obligations fully purchase. guaranteed as to principal and interest by, the U.S. Govt, or any agency 2 Advances secured to the satisfaction of the F.R. Bank. Advances thereof. secured by mortgages on 1- to 4-family residential property are made at 5 Rates under Sees. 13 and 13a (as described above). For description the Section 13 rate. and earlier data, see the following publications of the Board of Governors: 3 Applicable to special advances described in Section 201.2(e)(2) of Banking and Monetary Statistics, 1914-1941, Banking and Monetary Regulation A. Statistics, 1941-1970, Annual Statistical Digest, 1971-75, and Annual Statistical Digest, 1972-76. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.15 MEMBER BANK RESERVE REQUIREMENTS1 Per cent of deposits Requirements in effect Previous requirements November 30, 1978 Type of deposit, and deposit interval in millions of dollars Per cent Effective date Per cent Effective date Net demand:2 0-2 7 12/30/76 m 2/13/75 2-10 9% 12/30/76 10 2/13/75 10-100 H3/4 12/30/76 12 2/13/75 100-400 12% 12/30/76 13 2/13/75 Over 400 161/4 12/30/76 161/z 2/13/75 Time:2-3 Savings 3 3/16/67 m 3/2/67 Other time:4 0-5, maturing in— 30-179 days 3 3/16/67 31/2 3/2/67 180 days to 4 years 52 % 1/8/76 3 3/16/67 4 years or more 5 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 5 21/2 1/8/76 3 12/12/74 5 1 10/30/75 3 12/12/74 Legal limits Minimum Maximum Net demand: Reserve city banks 10 22 Other banks 7 14 3 10 Borrowings from foreign banks 0 22 1 For changes in reserve requirements beginning 1963, see Board's (c) Effective August 24, 1978, the Regulation M reserve requirements Annual Statistical Digest, 1971-1975 and for prior changes, see Board's on net balances due from domestic banks to their foreign branches and Annual Report for 1976, Table 13. on deposits that foreign branches lend to U.S. residents were reduced to 2 (a) Requirement schedules are graduated, and each deposit interval zero from 4 per cent and 1 per cent, respectively. The Regulation D applies to that part of the deposits of each bank. Demand deposits reserve requirement on borrowings from unrelated banks abroad was subject to reserve requirements are gross demand deposits minus cash also reduced to zero from 4 per cent. items in process of collection and demand balances due from domestic 3 Negotiable orders of withdrawal (NOW) accounts and time deposits banks. such as Christmas and vacation club accounts are subject to the same (b) The Federal Reserve Act specifies different ranges of requirements requirements as savings deposits. for reserve city banks and for other banks. Reserve cities are designated 4 Effective November 2, 1978, a supplementary reserve requirement of under a criterion adopted effective Nov. 9, 1972, by which a bank having 2 per cent was imposed on time deposits of $100,000 or more, obligations net demand deposits of more than $400 million is considered to have the of affiliates, and ineligible acceptances. character of business of a reserve city bank. The presence of the head 5 The average of reserves on savings and other time deposits must be office of such a bank constitutes designation of that place as a reserve at least 3 per cent, the minimum specified by law. city. Cities in which there are Federal Reserve Banks or branches are also reserve cities. Any banks having net demand deposits of $400 million or NOTE.—Required reserves must be held in the form of deposits with less are considered to have the character of business of banks outside of F.R. Banks or vault cash. reserve cities and are permitted to maintain reserves at ratios set for banks not in reserve cities. For details, see the Board's Regulation D. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • December 1978 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions Per cent per annum Commercial banks Savings and loan associations and mutual savings banks Type and maturity of deposit In effect Nov. 30, 1978 Previous maximum In effect Nov. 30, 1978 Previous maximum Per cent Effective Per cent Effective Per cent Effective Per cent date date date 1 Savings 5 7/1/73 4 V4 1/21/70 5% (7) 5 2 Negotiable orders of withdrawal accounts1 5 1/1/74 (10) 5 1/1/74 (10) 3 Money market time deposit of less than $100,0002 (9) (9) (9) (9) (9) (9) (9) Other time (multiple- and singlematurity unless otherwise indicated) • 30-89 days: 4 Multiple-maturity 7/1/73 41/4 1/21/70 (10) 5 Single-maturity 5 9/26/66 90 days to 1 year: 7 6 S M in u g lt l i e p -m le- a m tu a r t i u ty r ity 5% 7/1/73 7 9/ / 2 2 6 0 / / 6 6 6 6 (7) 5% 1 8 9 0 i 2 1 y 2 t t o o t o i 2 y 4 2 y e y y a e e r a a s r 4 r s s 4 4 6 6 % 7 7 / / 1 1 / / 7 7 3 3 5 5 53 y V / 4 i 4 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 6 6 V V 4 4 ( ( 7 7 ) ) 5 6 6 3/4 1 1 2 1 6 4 t t o o 8 6 y y e e a a r r s s 5 5 m m 12 1 / 1 2 / 3 1/ / 7 7 3 4 W 11/1/73 m 1 1 2 1 /2 /1 3 / / 7 7 3 4 ( 7 n V ) 4 13 8 years or more 5 m 6/1/78 (10) 8 6/1/78 (10) 14 Issued to governmental units (all maturities) 6/1/78 1V4 12/23/74 8 6/1/78 7% 15 Individual retirement accounts and Keogh (H.R. 10) plans* 6/1/78 7 Va 7/6/77 8 6/1/78 7% 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 in Massachusetts and New Hampshire 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 Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 throughout New England on Feb. 27, 1976, and in New York State on Nov. 10, 1978. 2 Must have a maturity of exactly 26 weeks and a minimum denomina- 8.982 9.419 9.291 8.996 9.330 tion of $10,000, and must be nonnegotiable. Thrifts 9.232 9.669 9.541 9.246 9.580 3 For exceptions with respect to certain foreign time deposits see the Federal Reserve BULLETIN for October 1962 (p. 1279), August 1965 (p. 1094), and February 1968 (p. 167). 10 No separate account category. 4 A minimum of $1,000 is required for savings and loan associations, 11 Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for except in areas where mutual savings banks permit lower minimum de- certificates maturing in 4 years or more with minimum denominations nominations. This restriction was removed for deposits maturing in less of $1,000; however, the amount of such certificates that an institution than 1 year, effective Nov. 1, 1973. could issue was limited to 5 per cent of its total time and savings deposits. 5 $1,000 minimum except for deposits representing funds contributed Sales in excess of that amount, as well as certificates of less than $1,000, to an Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan es- were limited to the 6 V£ per cent ceiling on time deposits maturing in 2Vi tablished pursuant to the Internal Revenue Code. The $1,000 minimum years or more. requirement was removed for such accounts in December 1975 and No- Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing vember 1976, respectively. in 4 years or more with minimum denominations of $ 1,000. There is no 6 3-year minimum maturity. limitation on the amount of these certificates that banks can issue. 7 July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loan associations. NOTE—Maximum rates that can be paid by Federally insured commer- 8 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and cial banks, mutual savings banks, and savings and loan associations are loan associations. established by the Board of Governors of the Federal Reserve System, 9 Commercial banks, savings and loan associations, and mutual savings the Board of Directors of the Federal Deposit Insurance Corporation, banks were authorized to offer money market time deposits effective and the Federal Home Loan Bank Board under the provisions of 12 June 1, 1978. The ceiling rate for commercial banks is the discount rate CFR 217, 329, and 526, respectively. The maximum rates on time deon most recently issued 6-month U.S. Treasury bills. The ceiling rate for posits in denominations of $100,000 or more were suspended in midsavings and loan associations and mutual savings banks is V4 per cent 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 Apr. May June July Aug. Sept. Oct. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched salepurchase transactions) Treasury bills: 11111111,,,,555566662222 11114444,,,,333344443333 11113333,,,,777733338888 1,670 444411116666 4,395 770011 997722 2,635 11,,997788 5555,,,,555599999999 8888,,,,444466662222 7777,,,,222244441111 777733337777 446666 668899 22,,114488 22226666,,,,444433331111 2222 5555,,,,000011117777 2222,,,,111133336666 333300000000 Others within 1 year:1 3333,,,,888888886666 444477772222 3333,,,,000011117777 110000 55553333 113355 117711 116688 7733 ---444 792 444...444999999 136 -2,343 -380 -241 -1,544 563 -385 333,,,555444999 222...555000000 1 to 5 years: 222 333,,,222888444 2222 3333,,,,222200002222 222,,,888333333 223355 229900 663311 442244 335500 550077 111177777777 10 Exchange, or maturity shift 33,,885544 ----2222,,,,555588888888 --66,,664499 --ii3366 --7799 446677 241 --449900 --556633 338855 5 to 10 years: 11,,551100 1111,,,,000044448888 775588 119911 110011 117766 223388 111100 8877 ---444,,,666999777 111,,,555777222 555888444 111,,,555222666 ---888777 111,,,444333444 Over 10 years: 14 Gross purchases 111,,,000777000 666444222 555555333 114455 777444 111111555 111111333 112222 113399 15 Gross sales 16 Exchange or maturity shift 888884444488888 222222222255555 11111,,,,,555556666655555 888899995555 666000000 All maturities:1 17 Gross purchases 222222222211111,,,,,333331111133333 222221111199999,,,,,777770000077777 2222200000,,,,,888889999988888 2,341 999933335555 5,451 770011 111,,,999111999 3,386 22,,778855 1 s Gross sales 55555,,,,,555559999999999 88888,,,,,666663333399999 77777,,,,,222224444411111 777733337777 446666 666888999 22,,114488 19 Redemptions 22222 99999,,,,,999998888800000 22222 55555,,,,,000001111177777 44444,,,,,666663333366666 333300000000 Matched sale-purchase transactions 20 Gross sales 111115555511111,,,,,222220000055555 111119999966666,,,,,000007777788888 444442222255555,,,,,222221111144444 42,262 44440000,,,,666633334444 5522,,554444 44,657 29,162 33,346 35,112 21 Gross purchases 111115555522222,,,,,111113333322222 111119999966666,,,,,555557777799999 444442222233333,,,,,888884444411111 42,799 44440000,,,,333366662222 5522,,555577 44,712 29,641 33,130 36,106 Repurchase agreements 22 Gross purchases 111114444400000,,,,,333331111111111 222223333322222,,,,,888889999911111 111117777788888,,,,,666668888833333 8,044 11111111,,,,555511117777 1144,,995566 15,822 16,286 10,724 18,976 23 Gross sales 111113333399999,,,,,555553333388888 222223333300000,,,,,333335555555555 111118888800000,,,,,555553333355555 8,999 11111111,,,,888811119999 1133,,110000 17,374 15,140 10,353 20,565 24 Net change in U.S. Government securities 1,923 ----666677774444 -1,261 2,854 3,540 43 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 3344 3322008811 44 111333 2288 1122 Repurchase agreements: 111555,,,111777555 111000,,,555222000 111333,,,888111111 1,282 33,,992277 33,,442211 55,,117700 333,,,000888000 33,,887777 66,,667755 29 Gross sales 111555,,,555666777 111000,,,333666000 111333,,,666333888 1,410 44,,003377 33,,008888 55,,445577 333,,,000333222 33,,334488 77,,119966 30 Net change in Federal agency obligations 999777888 888888222 111,,,333888333 -128 --114444 660066 --229911 ---111333888 550011 --552211 BANKERS ACCEPTANCES 31 Outright transactions, net 111666333 ---555444555 ---111999666 32 Repurchase agreements, net ---333555 444111000 111555999 -480 -17 747 -753 28 419 -479 33 Net change in bankers acceptances -480 -17 747 -753 28 419 -479 111222777 ---111333555 ---333777 34 Total net change in System Open Market Account 1,315 -834 8,783 -2,305 2,744 4,460 -969 888,,,555333999 999,,,888333333 777,,,111444333 1 Both gross purchases and redemptions include special certificates amounting to $189 million. Acquisition of these notes is treated as a created when the Treasury borrows directly from the Federal Reserve, purchase; the run-off of bills, as a redemption. as follows (millions of dollars): 1975, 3,549; 1976, none; Sept. 1977, 2,500. NOTE.—Sales, redemptions, and negative figures reduce holdings of 2 In 1975, the System obtained $421 million of 2-year Treasury notes the System Open Market Account; all other figures increase such holdings. in exchange for maturing bills. In 1976 there was a similar transaction Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic NonfinancialS tatistics • December 1978 1.18 FEDERAL RESERVE BANKS Condition and F.R. Note Statements Millions of dollars Wednesday End of month Account 1978 1978 Nov. 1 Nov. 8 Nov. 15 Nov. 22*> Nov. 29f Sept. Oct. Nov.f Consolidated condition statement ASSETS 1 Gold certificate account 11,655 11,649 11,642 11,642 11,642 11,668 11,655 11,642 2 Special Drawing Rights certificate account 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 3 298 298 296 289 274 292 300 275 Loans: 4 Member bank borrowings 1,789 783 1,258 931 1,260 1,365 1,207 812 5 Other Acceptances: 7 440055 338833 337700 771155 223366 Federal agency obligations: 8 7,932 7,932 7,932 7,932 7,899 7,950 7,938 7,899 Q 11,,001199 116600 662255 664477 112277 U.S. Government securities Bought outright: 10 Bills 45,585 40,970 41,831 43,558 44,790 47,551 48,376 45,985 11 12 Other 13 54,526 54,526 53,926 54,855 54,855 53,859 54,526 54,855 14 11,757 11,757 12,357 12,465 12,465 11,617 11,757 12,465 15 111,868 110077,,225533 108,114 110,878 112,110 113,027 114,659 111133,,330055 16 2,676 325 2,000 2,252 663 17 114,544 107,253 108,114 111,203 114,110 115,279 115,322 113,305 18 Total loans and securities 125,689 115,968 117,304/ 120,609 124,264 125,956 124,830 122,016 19 Cash items in process of collection 13,265 10,071 18,419 14,581 12,709 9,492 13,366 11,824 20 395 396 396 397 396 394 395 396 Other assets: 21 Denominated in foreign currencies 27 27 25 29 47 20 27 53 22 2,794 3,699 1,855 1,772 1,962 2,025 2,334 1,901 23 155,423 143,408 151,237 150,619 152,594 151,147 154,207 149,407 LIABILITIES 24 Federal Reserve notes 9988,,333366 9999,,447711 110000,,007711 110000,,558844 110011,,007700 9966,,557722 9988,,115544 110000,,882255 Deposits: 25 Member bank reserves 30,425 24,484 28,327 31,395 32,363 26,830 26,260 30,577 26 14,322 7,989 7,557 6,153 7,236 16,647 15,467 6,587 27 Foreign 244 249 313 285 275 325 305 379 28 Other2 573 652 2,325 565 479 628 531 567 29 45,564 33,374 38,522 38,398 40,353 44,430 42,563 38,110 30 Deferred availability cash items 6,948 6,650 8,500 7,358 6.587 5,773 8,930 5,927 31 Other liabilities and accrued dividends 1,683 1,597 1,678 1,647 1,784 1,700 1,686 1,725 32 Total liabilities 152,531 141,092 148,771 147,987 149,794 148,475 151,333 146,587 CAPITAL ACCOUNTS 33 1,068 1,069 1,070 1,073 1,073 1,061 1,069 1,073 34 1,029 1,029 1,029 1,029 1,029 1,029 1,029 1,029 35 Other capital accounts 795 218 367 530 698 582 776 718 36 Total liabilities and capital accounts 155,423 143,408 151,237 150,619 152,594 151,147 154,207 149,407 37 MEMO: Marketable U.S. Govt, securities held in custody for foreign and intl. account 91,803 92,756 94,738 92,934 91,855 86,450 83,606 92,412 Federal Reserve note statement 38 F.R. notes outstanding (issued to Bank) 110,796 111111,,229966 111,759 111122,,227722 111122,,442233 110099,,559900 111100,,774411 111122,,444455 Collateral held against notes outstanding: 39 Gold certificate account 11,655 11,649 11,642 11,642 11,642 11,668 11,655 11,642 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 1,581 587 682 756 1,170 1,137 1,094 692 42 U.S. Government securities 96,260 97,760 98,135 98,574 98,311 95,485 96,692 98,811 43 Total collateral 110,796 111,296 111,759 112,272 112,423 109,590 110,741 112,445 1 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 Type and maturity 1978 1978 Nov. 1 Nov. \ Nov. 15 Nov. 22 Nov. 29 Sept. 30 Oct. 31 1 Loans 1,796 783 1,257 931 1,260 1,363 1,206 2 Within 15 days 1,701 673 1,197 876 1,222 1,288 1,108 3 16 days to 90 days. 95 110 60 55 38 75 98 4 91 days to 1 year... 5 Acceptances 405 383 370 715 236 6 Within 15 days 405 383 370 715 236 7 16 days to 90 days. 8 91 days to 1 year... 9 U.S. Government securities. 114,544 107,253 108,114 111,203 114,110 115,279 115,322 10 Within 15 days i 8,666 5,958 3,059 5,386 7,352 5,150 7,195 11 16 days to 90 days 20,349 17,863 18,073 18,860 19,775 25,203 22,072 12 91 days to 1 year 30,204 28,107 30,655 29,732 29,758 30,157 30,730 13 Over 1 year to 5 years. . . 31,638 31,638 31,205 31,833 31,833 31,309 31,638 14 Over 5 years to 10 years. 13,719 13,719 14,554 14,717 14,717 13,632 13,719 15 Over 10 years 9,968 9,968 10,568 10,675 10,675 9,828 9,968 16 Federal agency obligations.. 8,951 7,932 7,932 8,092 8,524 8,597 8,065 17 Within 15 days i 1,019 94 316 761 701 164 18 16 days to 90 days 369 386 292 230 437 340 369 19 91 days to 1 year 1,520 1,503 1,503 1,503 1,292 1,467 1,488 20 Over 1 year to 5 years. . . 3,663 3,663 3,663 3,663 3,686 3,619 3,664 21 Over 5 years to 10 years. 1,520 1,520 1,520 1,520 1,488 1,609 1,520 22 Over 10 years 860 860 860 860 860 861 860 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. 1.20 BANK DEBITS AND DEPOSIT TURNOVER Debits are shown in billions of dollars, turnover as ratio of debits to deposit. Monthly data are at annual rates. 1978 BBaannkk ggrroouupp,, oorr ttyyppee 11997755 11997766 11997777 ooff ccuussttoommeerr June July Aug. Sept. Oct. Debits to demand deposits 2 (seasonally adjusted) 1111 AAAAllllllll ccccoooommmmmmmmeeeerrrrcccciiiiaaaallll bbbbaaaannnnkkkkssss 25,028.5 29,180.4 34,322.8 41,538.5 40,575.1 42.722.1 41.811.6 42,855.9 2222 MMMMaaaajjjjoooorrrr NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy bbbbaaaannnnkkkkssss.... .... 9,670.7 11,467.2 13,860.6 15,976.0 15,355.3 16,432.9 15,495.9 15,437.3 3333 OOOOtttthhhheeeerrrr bbbbaaaannnnkkkkssss 15,357.8 17,713.2 20,462.2 25,562.5 25,219.7 26.289.2 26.315.7 27,418.6 Debits to savings deposits 3 (not seasonally adjusted) 4444 AAAAHHHH ccccuuuussssttttoooommmmeeeerrrrssss 117744..00 444444..00 443322..11 443333..00 442200..44 446611..44 5555 BBBBuuuussssiiiinnnneeeessssssss 1111 2211..77 6611..55 5555..66 5577..66 6600..99 6677..22 6666 OOOOtttthhhheeeerrrrssss 115522..33 338822..66 337766..55 337755..44 335599..55 339944..22 Demand deposit turnover 2 (seasonally adjusted) 77777 AAAAAllllllllll cccccooooommmmmmmmmmeeeeerrrrrccccciiiiiaaaaalllll bbbbbaaaaannnnnkkkkksssss 105.3 116.8 129.2 144.4 139.0 146.2 141.6 144.1 88888 MMMMMaaaaajjjjjooooorrrrr NNNNNeeeeewwwww YYYYYooooorrrrrkkkkk CCCCCiiiiitttttyyyyy bbbbbaaaaannnnnkkkkksssss..... ..... 356.9 411.6 503.0 596.0 553.0 577.5 549.6 530.1 99999 OOOOOttttthhhhheeeeerrrrr bbbbbaaaaannnnnkkkkksssss 72.9 79.8 85.9 98.0 95.5 99.7 98.6 102.2 Savings deposit turnover 3 (not seasonally adjusted) 1111100000 AAAAAllllllllll cccccuuuuussssstttttooooommmmmeeeeerrrrrsssss 11..66 22..00 22..00 22..00 11..99 22..11 1111111111 BBBBBuuuuusssssiiiiinnnnneeeeessssssssss 11111 44..11 55..55 55..11 55..22 55..33 55..88 1111122222 OOOOOttttthhhhheeeeerrrrrsssss 11..55 11..88 11..88 11..88 11..77 11..99 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 and of States and political subdivisions. for savings deposits are not available prior to July 1977. 3 Excludes negotiable orders of withdrawal (NOW) accounts and special club accounts, such as Christmas and vacation clubs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • December 1978 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1978 11997744 11997755 11997766 11997777 DDeecc.. DDeecc.. DDeecc.. DDeecc.. IIIttteeemmm May June July Aug. Sept. Oct. Seasonally adjusted MEASURES 1 1 M-l 282.9 295.2 313.5 338.5 350.6 352.8 354.2 356.7 360.9 362.0 2 M-l -j- 419.0 456.4 516.8 560.2 575.2 577.1 577.8 582.0 587.9 588.8 3 M-2 612.2 664.7 740.5 809.5 835.2 840.6 846.2 853.5 862.4 867.4 4 M-3 981.2 1,092.5 1,236.5 1,376.1 1,419.9 1,429.8 rl,441.0 1,455.1 rl,472.1 1,484.2 5 M-4 701.2 746.1 803.2 883.5 922.2 927.3 933.6 939.8 950.5 955.6 6 M-5 1,070.3 1,173.8 1,299.2 1,450.1 1,506.9 1,516.5 rl,528.4 1,541.4 rl,560.2 1,572.4 COMPONENTS 7 Currency 67.8 73.7 80.7 88.6 92.1 92.8 93.3 94.0 95.2 96.0 Commercial bank deposits: 8 Demand 215.1 221.5 232.8 249.9 258.5 259.9 260.9 262.8 265.7 266.1 9 Time and savings 418.3 450.9 489.7 545.0 571.6 574.5 579.4 583.0 589.7 593.6 10 Savings 135.8 160.5 201.9 219.6 222.0 221.7 220.9 222.4 224.2 223.9 It Negotiable CD's2 89.0 81.3 62.7 74.0 87.1 86.7 87.4 86.3 88.1 88.2 12 Other time 193.5 209.1 225.1 251.5 262.6 266.1 271.1 274.3 211A 281.5 13 Nonbank thrift institutions3 369.1 427.8 496.0 566.6 584.7 589.2 59417 601.6 609.6 616.8 Not seasonally adjusted MEASURES i 14 M-l 291.3 303.9 322.6 348.2 345.3 351.7 356.0 354.2 358.8 361.3 15 M-l + 426.2 463.6 524.2 568.1 571.7 578.1 581.9 579.3 583.2 586.2 16 M-2. 617.5 670.0 745.8 814.9 833.6 842.0 848.7 850.8 858.4 864.5 17 M-3 983.8 1,095.0 1,238.4 1,377.5 1,420.3 1,435.2 1,447.9 rl,453.0 1,466.4 1,478.8 18 M-4 708.0 753.5 810.0 890.9 918.2 928.3 936.0 938.8 948.7 955.3 19 M-5 1,074.3 1,178.4 1,320.7 1,453.4 1,405.0 1,521.5 rl ,535.3 1,541.0 1,556.7 1,569.6 COMPONENTS 20 Currency 69.0 75.1 82.1 90.1 91.9 92.9 94.1 94.3 95.0 95.8 Commercial bank deposits: 21 Demand 222.2 228.8 240.5 258.1 253.3 258.8 262.0 259.9 263.8 265.6 22 Member 159.7 162.8 169.4 177.5 172.6 175.7 Ml .1 176.1 178.2 179.2 23 Domestic nonmember 58.5 62.6 67.5 76.2 76.9 79.1 80.3 79.9 r81.8 82.6 24 Time and savings 416.7 449.6 487.4 542.6 572.9 576.6 579.9 584.6 589.9 594.0 25 Savings 134.5 159.1 200.2 217.7 223.8 223.8 223.1 222.2 222.1 222.0 26 Negotiable CD's 2 90.5 83.5 64.3 75.9 84.6 86.3 87.3 88.0 90.3 90.8 27 Other time 191.7 207.1 222.9 249.0 264.5 266.5 269.5 21A A 211.5 281.2 28 Other checkable deposits4 0.4 0.7 1.4 2.1 2.6 2.6 2.7 2.8 2.9 2.9 29 Nonbank thrift institutions 3 366.3 424.9 492.7 562.5 586.7 593.2 r599.3 602.1 '608.1 614.3 30 U.S. Government deposits (all commerical banks) 4.9 4.1 4.4 5.1 4.0 6.2 4.5 3.6 6.2 4.3 1 Composition of the money stock measures is as follows: of mutual savings banks, savings and loan shares, and credit union shares (nonbank thrift). M-l: Averages of daily figures for (1) demand deposits at commercial M-4: M-2 plus large negotiable CD's. banks other than domestic interbank and U.S. Govt., less cash items in M-5: M-3 plus large negotiable CD's. process of collection and F.R. float; (2) foreign demand balances at F.R. Latest monthly and weekly figures are available from the Board's 508 Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults (H.6) release. Back data are available from the Banking Section, Division of commercial banks. of Research and Statistics. M-l + : M-l plus savings deposits at commercial banks, NOW accounts 2 Negotiable time CD's issued in denominations of $100,000 or more at banks and thrift institutions, credit union share draft accounts, and by large weekly reporting commercial banks. demand deposits at mutual savings banks. 3 Average of the beginning- and end-of-month figures for deposits of M-2: M-l plus savings deposits, time deposits open account, and time mutual savings banks, for savings capital at savings and loan associations, certificates of deposit (CD's) other than negotiable CD's of $100,000 or and for credit union shares. more at large weekly reporting banks. 4 Includes NOW accounts at thrift institutions, credit union share M-3: M-2 plus the average of the beginning- and end-of-month deposits draft accounts, and demand deposits at mutual savings banks. 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. merical 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 IItteemm 11997744 11997755 11997766 DDeecc.. DDeecc.. DDeecc.. Dec. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted 1111 RRRReeeesssseeeerrrrvvvveeeessss1111 36.57 34.68 34.93 36.14 36.67 36.95 37.26 37.73 38.19 37.91 38.17 38.44 2222 NNNNoooonnnnbbbboooorrrrrrrroooowwwweeeedddd 35.84 34.55 34.89 35.57 36.34 36.39 36.05 36.63 36.88 36.77 37.11 37.16 3333 RRRReeeeqqqquuuuiiiirrrreeeedddd 36.31 34.42 34.29 35.95 36.47 36.80 37.04 37.55 38.00 37.74 37.97 38.26 4444 DDDDeeeeppppoooossssiiiittttssss ssssuuuubbbbjjjjeeeecccctttt ttttoooo rrrreeeesssseeeerrrrvvvveeee rrrreeeeqqqquuuuiiiirrrreeeemmmmeeeennnnttttssss2222.... .... 486.1 504.6 528.9 569.1 582.1 586.0 592.0 595.6 600.3 r601.1 r606.4 608.1 5555 TTTTiiiimmmmeeee aaaannnndddd ssssaaaavvvviiiinnnnggggssss 322.1 337.1 354.3 387.0 399.2 400.7 406.0 407.1 410.5 411.4 416.0 417.5 DDDDeeeemmmmaaaannnndddd:::: 6666 PPPPrrrriiiivvvvaaaatttteeee 160.6 164.5 171.4 178.5 179.6 182.0 183.5 184.6 186.1 186.5 186.3 187.2 7777 UUUU....SSSS.... GGGGoooovvvveeeerrrrnnnnmmmmeeeennnntttt 3.3 2.9 3.2 3.6 3.4 3.3 2.6 3.9 3.7 3.3 4.1 3.5 Not seasonally adjusted 8888 DDDDeeeeppppoooossssiiiittttssss ssssuuuubbbbjjjjeeeecccctttt ttttoooo rrrreeeesssseeeerrrrvvvveeee rrrreeeeqqqquuuuiiiirrrreeeemmmmeeeennnnttttssss2222........ 491.8 510.9 534.8 575.3 579.4 588.6 588.3 596.8 600.6 599.2 605.9 608.4 9999 TTTTiiiimmmmeeee aaaannnndddd ssssaaaavvvviiiinnnnggggssss 321.7 337.2 353.6 386.4 399.3 401.2 406.1 408.6 411.1 412.8 r416.6 418.5 DDDDeeeemmmmaaaannnndddd:::: 11110000 PPPPrrrriiiivvvvaaaatttteeee 166.6 170.7 177.9 185.1 176.6 183.8 179.3 183.7 186.4 183.9 184.7 186.9 11111111 UUUU....SSSS.... GGGGoooovvvveeeerrrrnnnnmmmmeeeennnntttt 3.4 3.1 3.3 3.8 3.5 3.6 2.9 4.5 3.2 2.5 4.6 3.0 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 CCaatteeggoorryy Dec. 313 Dec. 31 Dec. 31 Dec. 31 June 30 July 26p Aug. 30p Sept. 21p Oct. 25f Nov. 29f Seasonally adjusted 1 Loans and investments1 c691.1 c721.8 c785.1 870.6 932.2 940.7 944.6 952.4 960.9 966.3 2 Including loans sold outright2 c695.9 c726.2 c788.9 875.5 936.7 945.3 949.3 957.0 964.8 970.0 Loans: 3 Total c500.2 c496.9 c538.9 617.0 667.8 675.1 680.2 687.3 696.8 706.7 4 Including loans sold outright2... c505.0 c501.3 c542.7 621.9 672.3 679.7 684.9 691.9 700.7 710.4 5 Commercial and industrial c183.5 C176.2 04179.7 5201.4 219.0 220.8 222.8 224.6 227.0 228.9 6 Including loans sold outright2... c186.2 c178.7 c4182.1 5204.2 221.2 223.1 225.2 226.9 228.9 230.8 Investments: 7 U.S. Treasury "51.1 c80.1 c98.0 95.6 100.2 100.6 97.9 97.2 95.2 90.3 8 Other c139.8 c144.8 c148.2 158.0 164.2 165.0 166.5 167.9 168.9 169.3 Not seasonally adjusted 9 Loans and investments1 705.6 737.0 801.6 888.9 938.7 936.6 942.0 951.4 958.4 969.1 10 Including loans sold outright2 710.4 741.4 805.4 893.8 943.2 941.2 946.7 956.1 962.3 972.8 Loans: 11 Total1 510.7 507.4 550.2 629.9 675.8 675.6 681.0 688.6 696.6 717.1 12 Including loans sold outright2... 515.5 511.8 554.0 634.8 680.3 680.2 685.7 693.3 700.5 700.8 13 Commercial and industrial 186.8 179.3 4182.9 5205.0 221.6 220.9 221.7 223.9 226.5 228.9 14 Including loans sold outright2... 189.5 181.8 4185.3 5207.8 223.8 232.2 224.1 226.2 228.4 230.8 Investments: 15 U.S. Treasury 54.5 84.1 102.5 100.2 97.9 96.1 94.8 95.0 93.5 92.6 16 Other 140.5 145.5 148.9 158.8 165.1 164.9 166.2 167.7 168.3 169.5 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • December 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 1 Dec. Dec. Mar. Apr. May June July* Aug.f Sept.3' Oct.P Nov.* All commercial 1 Loans and investments 846.4 939.1 939.7 953.0 974.4 985.0 980.6 985.5 995.6 1,003.0 1,016.0 2 Loans, gross 594.9 680.1 680.4 688.7 712.4 722.1 719.6 724.5 733.4 741.2 754.0 Investments: 3 U.S. Treasury securities 102.5 100.2 99.0 100.2 97.3 97.9 96.1 94.8 94.9 93.5 92.6 4 Other 148.9 158.8 160.3 164.1 164.6 165.1 164.9 166.2 167.3 168.3 169.5 5 Cash assets 136.1 168.7 130.5 133.1 161.0 166.8 130.2 137.4 141.8 146.5 149.3 6 12.1 13.9 14.4 14.3 14.5 12.0 14.8 15.2 15.2 15.1 16.7 7 Reserves with F.R. Banks 26.1 29.3 30.2 27.6 30.3 29.6 23.6 29.7 32.6 34.6 32.6 8 Balances with banks 49.6 59.0 42.6 43.6 51.9 56.0 44.4 43.0 44.4 45.0 46.5 9 Cash items in process of collection.. 48.4 66.4 43.3 47.6 64.3 69.3 47.3 49.5 49.6 51.7 53.5 10 Total assets/total liabilities and 1,030.7 1,166.0 1,140.5 1,156.9 1,206.5 1,215.0 1,179.2 1,192.9 1,208.7 1,220.4 1,240.5 11 Deposits 838.2 939.4 899.8 915.5 952.9 965.7 932.3 937.7 949.9 952.3 959.4 Demand: 12 Interbank 45.4 51.7 37.6 39.0 51.2 49.3 40.5 40.4 41.9 43.3 42.9 13 U.S. Government 3.0 7.3 4.9 6.2 3.3 8.0 4.3 2.8 11.0 7.6 2.1 14 Other 288.4 323.9 281.2 293.8 312.9 317.5 296.3 298.6 297.1 299.2 305.0 Time: 15 9.2 9.8 9.0 9.0 9.4 10.2 10.3 10.7 11.6 11.1 11.8 16 Other 492.2 546.6 567.1 567.5 576.1 580.8 580.9 585.2 588.3 591.2 597.6 17 Borrowings 80.2 96.2 105.6 104.9 112.2 106.8 103.2 109.1 112.8 118.3 125.3 18 Total capital accounts2 78.1 85.8 83.4 83.7 84.6 89.9 85.8 86.2 87.1 87.1 87.8 19 MEMO: Number of banks 14,671 14,707 14,689 14,697 14,702 14,698 14,713 14,721 14,715 14,713 14,713 Member 20 Loans and investments 620.5 675.5 668.6 676.8 693.8 699.7 695.8 698.9 706.9 713.4 724.2 21 Loans, gross 442.9 494.9 490.5 495.3 514.3 519.6 517.6 520.3 527.0 533.9 544.5 Investments: 22 U.S. Treasury securities 74.6 70.4 68.2 68.8 66.9 67.4 65.7 65.3 65.4 64.1 63.5 23 Other 103.1 110.1 109.9 112.7 112.7 112.7 112.5 113.3 114.5 115.3 116.1 24 Cash assets, total 108.9 134.4 104.8 106.5 130.7 133.8 104.2 111.2 115.4 118.6 121.3 25 Currency and coin 9.1 10.4 10.6 10.5 10.6 8.7 10.8 11.1 11.1 11.1 12.3 26 Reserves with F.R. Banks 26.0 29.3 30.2 27.6 30.3 29.6 23.6 29.7 32.6 34.6 32.6 27 Balances with banks 27.4 30.8 22.9 22.7 28.1 29.1 24.3 22.9 24.0 23.2 25.1 28 Cash items in process of collection.. 46.5 63.9 41.2 45.7 61.7 66.5 45.4 47.6 47.7 49.7 51.4 29 Total assets/total liabilities and capital 1 772.9 861.8 833.2 843.3 884.7 888.7 857.3 868.5 882.2 891.2 908.4 30 618.7 683.5 645.1 655.1 686.7 694.3 666.1 670.6 679.6 682.5 688.7 Demand: 31 Interbank 42.4 48.0 34.7 36.0 47.5 45.5 37.3 37.2 38.6 39.9 39.5 32 U.S. Government 2.1 5.4 3.7 4.5 2.2 5.6 3.1 1.9 8.1 5.7 1.5 33 Other 215.5 239.4 205.1 213.4 229.1 231.6 214.6 217.0 215.6 217.0 221.4 Time: 34 Interbank 7.2 7.8 7.0 6.9 7.3 8.1 8.2 8.6 9.4 9.0 9.7 35 Other 351.5 382.9 394.7 394.3 400.5 403.4 402.9 405.9 407.8 411.0 416.7 36 Borrowings 71.7 84.9 91.8 91.1 96.9 92.1 88.0 93.9 97.2 101.4 108.0 37 Total capital accounts2 58.6 63.7 62.4 62.7 63.3 66.1 64.2 64.5 65.1 65.2 65.7 38 MEMO: Number of banks 5,759 5,669 5,654 5,645 5,638 5,622 5,613 5,610 5,593 5,585 5,585 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: AJ1 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 1978 1976 1977 1978 Account Dec. 31 June 30 Dec. 31 June 30 Dec. 31 June 30 Dec. 31 June 30 Total insured National (all insured) 1 Loans and investments, gross 882277,,669966 r854,733 r914,779 956,431 476,610 488,240 523,000 542,218 Loans: 2 578,734 601,122 r657,509 695,443 340,691 351,311 384,722 403,812 3 Net r560,077 581,143 ••636,318 672,207 329,971 339,955 372,702 390,630 Investments: 4 U.S. Treasury securities 101,461 100,568 99,333 97,001 55,727 53,345 52,244 50,519 5 Other 147,500 r153,042 rl57,936 163,986 80,191 83,583 86,033 87,886 6 129,562 130,726 159,264 157,393 76,072 74,641 92,050 90,728 7 1,003,970 1,040,945 1,129,712 1,172,772 583,304 599,743 651,360 671,166 8 825,003 847,372 ••922,657 945,874 469,377 476,381 520,167 526,932 Demand: 9 U.S. Government 3,022 2,817 7,310 7,956 1,676 1,632 4,172 4.483 10 44,064 44,965 r49,843 47,203 23,149 22,876 25,646 22,416 11 Other 285,200 284,544 319,873 312,707 163,346 161,358 181,821 176,025 Time: 12 8,248 7,721 8,731 8,987 4,907 4,599 5,730 5,791 13 Other 484,467 507,324 536,899 569,020 276,296 285,915 302,795 318,215 14 75.291 81,137 r89,339 98,351 54,421 57,283 63,218 68,948 15 Total capital accounts 72,061 r75,502 '"79,082 83,074 41,319 43,142 44,994 47,019 16 MEMO: Number of banks 14,397 14,425 14,397 14,381 4,735 4,701 4,654 4,616 State member (all insured) Insured nonmember 17 144,000 144,597 152,514 157,464 207,085 221,896 239,265 256,749 Loans: 18 Gross 102,277 102,117 rl10,243 115,736 135,766 147,694 162,543 175,894 19 Net 99,474 99,173 r107,205 112,470 130,630 142,015 156,411 169,106 Investments : 20 U.S. Treasury securities 18,849 19,296 18,179 16,886 26,884 27,926 28,909 29,595 21 Other 22,874 23,183 24,091 24,841 44,434 46,275 47,812 51,259 22 32,859 35,918 42,305 43,057 20,631 20,166 24,908 23,606 23 Total assets/total liabilities1 '•189,579 195,452 r210,442 217,384 231,086 r245,748 267,910 284,221 24 114499,,449911 115522,,447722 116633,,443366 116677,,440033 220066,,113344 218,519 223399,,005533 251,539 Demand: 25 429 371 1,241 1,158 917 813 1,896 2,315 26 19,295 20,568 r22,346 23,117 1,619 1,520 1,849 1,669 27 Other 52,204 52,570 57,605 55,550 69,648 70,615 80,445 81,131 Time: 28 2,384 2,134 2,026 2,275 956 988 973 920 29 Other 75,178 76,827 80,216 85,301 132,993 144,581 153,887 165,502 30 17,310 19,697 r21,736 23,167 3,559 4,155 4,384 6,235 31 13,199 13,441 14,182 14,670 17,542 18,919 19,905 21,384 32 1,023 1,019 1,014 1,005 8,639 8,705 8,729 8,760 Noninsured nonmember Total nonmember 33 18,819 22,940 24,415 28,699 225,904 244,837 226633,,668811 228855,,444488 Loans: 34 16,336 20,865 22,686 26,747 152,103 168,559 185,230 202,641 35 Net 16,209 20,679 22,484 26,548 146,840 162,694 178,896 119955,,665555 Investments: 36 U.S. Treasury securities 1,054 993 879 869 27,938 28,919 29,788 30,465 37 Other 1,428 1,081 849 1,082 45,863 47,357 48,662 52,341 38 6,496 8,330 9,458 9,360 27,127 r28,497 34,367 32,967 39 26,790 33,390 36,433 42,279 257,877 279,139 304,343 326,501 40 13,325 14,658 16,844 19,924 219,460 233,177 225555,,889988 227711,,446633 Demand : 41 4 8 10 8 921 822 1,907 2,323 42 1,277 1,504 1,868 2,067 2,896 3,025 3,718 3,736 43 3,236 3,588 4,073 4,814 72,884 74,203 84,518 85,946 Time: 44 Interbank 1,041 1,164 1,089 1,203 1,997 2,152 2,063 2,123 45 7,766 8,392 9,802 11,831 140,760 152,974 163,690 177,334 46 4,842 7,056 6,908 8,413 8,401 11,212 11,293 14,649 47 Total capital accounts 818 893 917 962 18,360 19,812 20,823 22,346 48 MEMO: Number of banks 275 293 310 317 8,914 8,998 9,039 9,077 1 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 • December 1978 1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, June 30, 1978 Millions of dollars, except for number of banks. Member banks1 All Insured Non- Asset account commercial commercial Large banks member banks banks banks1 Total All other New York City of Other City Chicago large2 1 Cash bank balances, items in process 166,754 157,393 133,786 40,354 5,594 48,783 39,054 32,967 2 Currency and coin 11,950 11,883 8,691 795 190 2,878 4,828 33,,225599 3 Reserves with Federal Reserve Banks 29,574 29,566 29,566 4.104 1,537 12,499 11,426 88 4 Demand balances with banks in United States. 43,092 38,158 23,166 10,382 248 3,539 8,996 19,926 5 Other balances with banks in United States.... 6,779 5,007 2,775 520 5 782 1,468 4,004 6 Balances with banks in foreign countries 6,093 3,588 3,110 439 384 1,484 803 2,982 7 Cash items in process of collection 69,266 69,192 66,478 24,113 3,231 27,602 11,533 2,788 8 Total securities held—Book value 261,272 259,360 178,753 20,609 7,979 57,297 92,868 82,519 9 U.S. Treasury 97,872 97,002 67,406 9.623 2,955 22,215 32,613 30,466 10 Other U.S. Govertment agencies 39,847 39,486 25,193 1,800 1,353 7,362 14,678 14,654 11 States and political subdivisions 117,257 117,018 82,541 8,881 3,480 26,626 43,554 34,716 12 All other securities 6,204 5,767 3,549 305 191 1,071 1,981 2,655 13 Unclassified total 92 64 23 41 27 14 Trading-account securities 7,160 7,156 7,010 3,026 978 2,756 251 150 15 U.S. Treasury 4,062 4,062 4,044 1,907 713 1,352 72 17 16 Other U.S. Government agencies. 986 986 976 428 80 423 45 11 17 States and political subdivisions.. 1,676 1,676 1,657 610 133 824 90 19 18 All other trading acct. securities.. 345 345 270 82 52 133 3 75 19 Unclassified 92 88 64 23 41 27 20 Bank investment portfolios 254,112 252,204 171,743 17,583 7,002 54,541 92,617 82,369 21 U.S. Treasury 93,810 92,940 63,362 7,716 2,242 20,863 32,541 30,448 22 Other U.S. Government agencies. 38,861 38,499 24,217 1,373 1,273 6,939 14,633 14,644 23 States and political subdivisions.. 115,582 115,343 80,884 8,271 3,347 25,802 43,464 34,697 24 All other portfolio securities 5,859 5,422 3,279 223 139 938 1,979 2,580 25 Federal Reserve stock and corporate stock 1,669 1,628 1,380 309 105 491 475 288 26 Federal funds sold and securities resale agreement. 48,576 43,768 34,495 4,309 1,616 17,935 10,636 14,081 27 Commercial banks 41,068 36,621 27,517 2,321 1,300 13,996 9,899 13,552 28 Brokers and dealers 4,962 4,954 4,847 1,514 235 2,528 569 115 29 Others 2,546 2,193 2,131 474 80 1,411 167 415 30 Other loans, gross 673,615 651,675 485,054 76,423 25,479 184,099 199,053 188,560 31 LESS: Unearned income on loans. 16,142 16,086 10,768 620 104 3,521 6,524 5,374 32 Reserves for loan loss 7,293 7,150 5,680 1,297 325 2,155 1,902 1,613 33 Other loans, net 650,180 628,439 468,606 74,506 25 049 178,424 190,628 181,574 Other loans, gross, by category 34 Real estate loans 192,877 192,609 131,891 9,629 2,678 49,324 70,260 60,986 35 Construction and land development 23,658 23,639 17,684 2,391 630 8,586 6,076 5,974 36 Secured by farmland 8,208 8,189 3,565 23 8 405 3,129 4.643 37 Secured by residential properties 110,293 110,113 76,832 4,891 1,426 28,984 41,531 33,460 38 1- to 4-family residences 104,952 104,793 72,964 4,209 1,331 27,608 39,816 31,988 39 FHA-insured or VA-guaranteed 1,496 7,423 6,430 519 42 3,395 2,474 1,065 40 Conventional 97,457 97,370 66,534 3,690 1,289 24,213 37,342 30,923 41 Multifamily residences 5,341 5,320 3,869 683 95 1,376 1,714 1,472 42 FHA-insured 399 395 327 120 25 87 96 72 43 Conventional 4,941 4,926 3,541 563 70 1,289 1,619 1,400 44 Secured by other properties 50,719 50,667 33,810 2,324 614 11,349 19,523 16,909 45 Loans to financial institutions 44,426 35,472 33,355 11,483 4,015 14,985 2,873 11,071 46 REIT's and mortgage companies 8,348 8,341 7,949 2,114 812 4,369 654 399 47 Domestic commercial banks 5,263 3,116 2,398 702 123 1,307 265 2,865 48 Banks in foreign countries 12,864 6,610 6,447 2,931 272 2,648 596 6,417 49 Other depository institutions 1,480 1,458 1,312 240 53 775 245 168 50 Other financial institutions 16,471 15,948 15,249 5,496 2,755 5,886 1,113 1,222 51 Loans to security brokers and dealers 11,716 11,340 11,043 6,567 1,457 2,706 313 673 52 Other loans to purchase or carry securities. 4,425 4,337 3,604 403 294 1,896 1,011 821 53 Loans to farmers—except real estate 27,018 26,993 14,813 161 178 3,630 10,844 12,205 54 Commercial and industrial loans 221,591 210,907 170,678 38,588 13,149 67,555 51,387 50,913 55 Loans to individuals 153,582 153,458 105,611 6,686 2,334 37,998 58,592 47,971 56 Instalment loans 124,139 124,066 85,515 5,041 1,505 31,323 47,646 38,624 57 Passenger automobiles 55,757 55,740 35,523 994 179 10,746 23,605 20,233 58 Residential repair and modernization. 7,956 7,955 5,203 305 77 1,912 2,909 2,753 59 Credit cards and related plans 20,136 20,125 17,766 2,214 1,068 9,069 5,414 2,370 60 Charge-account credit cards 16,185 16,184 14,516 1,424 1,027 7,617 4,449 1,668 61 Check and revolving credit plans... 3,951 3,941 3,249 791 41 1,453 965 702 62 Other retail consumer goods 18,752 18,747 12,722 395 54 4,843 7,430 6,030 63 Mobile homes 9,387 9,387 6,553 171 19 2,471 3,892 2,834 64 Other 9,365 9,360 6,169 225 35 2,372 3,537 3,196 65 Other instalment loans 21,539 21,498 14,301 1,132 128 4,752 8,288 7,238 66 Single-payment loans to individuals 29,443 29,392 20,096 1,646 829 6,675 10,946 9,347 67 All other loans 17,979 16,559 14,059 2,906 1,373 6,005 3,774 3,920 68 Total loans and securities, net 961,697 933,196 683,234 99,732 34,749 254,146 294,607 278,463 69 Direct lease financing 6,303 6,302 5,918 1,106 98 3,669 1,045 384 70 Fixed assets—Buildings, furniture, real estate. 22,318 22,191 16,454 2,390 793 6,215 7,056 5,863 71 Investment in unconsolidated subsidiaries 3,146 3,109 3,069 1,546 182 1,240 101 77 72 Customer acceptances outstanding 16,489 15,293 14,788 7,399 1,089 5,908 392 1,701 73 Other assets 38,347 35,288 31,300 12,779 1,241 12,456 4,824 7,046 74 Total assets. 1,215,052 1,172,773 888,551 165,307 43,748 332,417 347,080 326,501 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A19 1.26 Continued Member banks1 All Insured Non- Liability or capital account commercial commercial Large banks member banks banks banks1 Total All other New York City of Other City Chicago large2 75 Demand deposits 374,758 367,867 282,751 65,198 10,932 100,994 105,627 92,006 76 Mutual savings banks 1,626 1,425 1,217 588 291 337 409 77 Other individuals, partnerships, and corporations 279,829 278,459 206,399 33,292 7,802 78,702 86,603 73,430 78 U.S. Govt 7,964 7,956 5,641 584 187 2,043 2,828 2,323 79 States and political subdivisions 18,210 18,138 12,421 830 184 3,564 7,842 5,789 80 Foreign governments, central banks, etc 1,840 1,351 1,317 1,084 25 170 37 524 81 Commercial banks in United States 38,924 37,963 36,639 18,730 2,147 11,503 4,260 2,285 82 Banks in foreign countries 8,721 7,815 7,679 6,007 225 1,249 198 1,042 83 Certified and officers' checks, etc 17,643 14,760 11,440 4,083 361 3,473 3,522 6,204 84 Time deposits 365,015 353,571 257,007 37,850 15,695 93,735 109,727 108,008 85 Accumulated for personal loan payments 90 90 72 1 71 18 86 Mutual savings banks 292 275 263 115 37 90 20 29 87 Other individuals, partnerships, and corporations 287,380 280,154 202,808 29,149 12,118 72,205 89,336 84,572 88 U.S. Government 989 989 793 82 39 421 251 195 89 States and political subdivisions 56,273 55,928 38,077 1,672 1,261 16,031 19,113 18,195 90 Foreign governments, central banks, etc 10,171 7,429 7,193 4,184 1,201 1,684 123 2,979 91 Commercial banks in United States 7,968 7,352 6,645 1,917 911 3,113 705 1,323 92 Banks in foreign countries 1,853 1,354 1,156 730 128 190 108 697 93 Savings deposits 226,026 224,436 154,577 10,945 2,758 55,474 85,401 71,449 94 Individuals and nonprofit organizations 210.453 209,067 144,198 10,150 2,612 51,865 79,572 66,255 95 Corporations and other profit organizations.. 10,807 10,787 7,431 504 137 3,091 3,699 3,376 96 U.S. Government 62 62 53 16 36 9 97 States and political subdivisions 4,501 4,486 2,863 273 9 494 2,087 1,638 98 Allother 204 35 31 16 * 9 7 172 99 Total deposits 965,799 945,875 694,335 113,992 29,385 250,204 300,755 271,464 100 Federal funds purchased and securities sold under agreements to repurchase 93,179 88,903 83,003 20,103 8,989 40,575 13,336 10,176 101 Commercial banks 46,947 43,727 41,154 7,773 5,904 21,697 5,780 5,793 102 Brokers and dealers 13,356 13,289 12,325 3,199 1,897 5,686 1,543 1,030 103 Others 32,876 31,887 29.524 9,132 1,188 13,192 6,013 3,352 104 Other liabilities for borrowed money3 13,586 9,448 9,112 3,398 179 4,243 1,292 4,473 105 Mortgage indebtedness 3 1,738 1,733 1,425 233 28 698 465 313 106 Bank acceptances outstanding 17,125 15,925 15,419 8,014 1,095 5,916 394 1,705 107 Other liabilities 33,773 22,062 19,126 5,911 1,106 8,051 4,057 14,647 108 Total liabilities 1,125,200 1,083,946 822,421 151,651 40,782 309,688 320,299 302,779 109 Subordinated notes and debentures 5,816 5,753 4,440 1,004 80 2,061 1,296 1,376 110 Equity capital 84,037 83,074 61,690 12,652 2,885 20,668 25,485 22,347 111 Preferred stock 88 88 33 2 31 55 112 Common stock 17,790 17,691 12,743 2,645 570 3,997 5,531 5,047 113 Surplus 32,386 31,874 22,906 4,451 1,404 8,063 8,898 9,480 114 Undivided profits 31,949 31,684 24.803 5,334 859 8,238 10,372 7,146 115 Other capital reserves 1,824 1,744 1,205 132 52 368 652 619 116 Total liabilities and equity capital 1,215,052 1,172,773 888,551 165,307 43,748 332,417 347,080 326,501 MEMO ITEMS: 117 Demand deposits adjusted4 258,603 252,756 173,993 21,771 5,368 59,847 87,007 84,610 Average for last 15 or 30 days: 118 Cash and due from bank 151,066 142,173 121,518 35,452 5,619 44,611 35,836 29,548 119 Federal funds sold and securities purchased under agreements to resell 53,196 47,463 36,121 5,530 1,901 16,558 12,132 17,075 120 Total loans 647,386 628,167 468,342 74,085 24,972 178,557 190,728 179,043 121 Time deposits of $ 100,000 or more 181,510 174,479 143,050 31,979 12,833 61,496 36,742 38,459 122 Total deposits 941,481 923,749 675,725 106,594 28,441 243,663 297,026 265,756 123 Federal funds purchased and securities sold under agreements to repurchase 95,273 90,853 85,358 21,859 9,825 40,469 13,205 9,915 124 Other liabilities for borrowed money 13,002 8,533 8,027 3,433 171 3,437 986 4,975 125 Standby letters of credit outstanding 18,948 17,750 16,686 9,406 1,269 4,796 1,215 2,262 126 Time deposits of $100,000 or more 183,339 177,602 145,695 32,476 13,253 62,711 37,245 37,653 127 Certificates of deposit 155,925 151,931 123,685 28,200 11,450 52,439 31,595 32,240 128 Other time deposits 27,414 25,671 22,001 4,277 1,803 10,271 5,650 5,413 129 Number of banks 14,698 14,381 5,621 12 9 153 5,447 9,077 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. Government, less cash items reported tions of valuation reserves. Back data in lesser detail were shown in as in process of collection. previous BULLETINS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • December 1978 1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1978 Account Oct. 4 Oct. 11 Oct. 18 Oct. 25 Nov. Nov. 8 p Nov. 15p Nov. 22p Nov. 29p 1 Total loans and investments 481,817 481,185 480,249 481,573 486,354 494,685 492,405 490,818 490,433 Loans: 2 Federal funds sold1 25,582 24,891 23,974 25,119 24,647 31,524 26,884 26,524 25,939 3 To commercial banks 19,075 20,111 18,100 19,714 18,200 24,306 20,013 19,912 21,031 To brokers and dealers involving— 4 U.S. Treasury securities 3,844 2,238 3,214 2,433 2,894 4,219 3,824 3,609 3,159 5 Other securities 582 629 560 512 748 722 IIS 851 790 6 To others 2,081 1,913 2,100 2,460 2,805 2,211 2,269 2,152 1,959 7 Other, gross 354,804 354,917 355,595 356,015 361,524 362,924 363,934 363,449 363,216 8 Commercial and industrial 137,791 138,434 138,295 138,776 139,878 140,317 140,728 140,536 140,490 9 Agricultural 5,360 5,398 5,421 5,420 5,402 5,370 5,399 5,352 5,340 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 1,436 715 1,317 863 1,133 1,641 1,716 1,292 850 11 Other securities 9,211 8,718 8,664 8,464 9,233 8,429 8,172 7,595 7,448 To others: 12 U.S. Treasury securities 109 108 109 110 109 109 110 13 Other securities 2,577 2,574 2,571 2,575 2,573 2,592 2,598 2,582 2,565 To nonbank financial institutions: 14 Personal and sales finance cos., etc 8,209 8,421 8,545 8,254 8,872 8,752 8,780 8,447 8,493 15 Other 15,960 16,002 15,914 15,609 15,820 15,888 15,748 15,601 15,596 16 Real estate 86,243 86,617 87,063 87,302 87,588 87,801 88,367 88,724 88,899 To commercial banks: 17 Domestic 2,723 2,647 2,323 2,477 2,674 3,115 2,796 2,908 3,150 18 Foreign 6,619 6,650 6,611 6,797 7,860 8,554 8,352 8,498 8,399 19 Consumer instalment 54,207 54,341 54,526 54,696 54,991 55,092 55,549 55,781 56,079 20 Foreign govts., official institutions, etc. 1,768 1,800 1,826 2,016 1,964 2,054 2,117 2,118 2,184 21 All other loans 22,591 22,492 22,410 22,656 23,427 23,208 23,503 23,904 23,613 22 LESS: Loan loss reserve and unearned income on loans 10,746 10,860 10,896 10,956 10,993 11,066 11,134 11,207 11,220 23 Other loans, net 344,058 344,057 344,699 345,059 350,531 351,858 352,800 352,242 351,996 Investments: 24 U.S. Treasury securities 43,046 42,369 41,916 41,724 41,484 41,330 42,421 41,637 41,352 25 Bills 4,331 3,543 3,641 3,446 3,328 3,252 3,072 3,215 3,136 Notes and bonds, by maturity: 26 Within 1 year 6,936 7,047 7,129 7,212 7,175 7,345 7,314 7,472 7,640 27 1 to 5 years 26,020 25,881 25,408 25,351 25,502 25,272 25,859 24,979 24,685 28 After 5 years 5,759 5,898 5,738 5,715 5,479 5,461 6,176 5,971 5,891 29 Other securities 69,131 69,868 69,660 69,671 69,692 69,973 70,300 70,415 70,146 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills 6,625 6,729 6,704 6,562 6,523 6,480 6,599 6,411 6,279 31 All other 45,673 45,880 45,754 45,797 45,686 46,030 46,245 46,350 46,337 Other bonds, corporate stocks, and securities: 32 Certificates of participation2 2,920 2,938 2,940 3,012 2,897 2,882 2,925 2,876 2,942 33 All other, including corporate stocks 13,913 14,321 14,262 14,300 14,586 14,581 14,531 14,778 14,588 34 Cash items in process of collection 48,432 47,996 45,848 45,104 50,659 49,019 51,483 49,433 46,892 35 Reserves with Federal Reserve Banks 23,644 25,097 19,998 26,853 22,670 20,505 21,370 23,604 24,754 36 Currency and coin 6,043 6,740 6,807 6,956 6,552 6,483 6,814 6,549 7,723 37 Balances with domestic banks 15,349 15,406 15,493 14,035 16,081 18,047 15,588 16,063 15,519 38 Investments in subsidiaries not consolidated 3,278 3,346 3,445 3,509 3,490 3,482 3,453 3,515 3,499 39 Other assets 64,400 65,178 65,436 64,670 66,225 68,840 69,566 69,610 68,493 40 Total assets/total liabilities 642,963 644,948 637,276 642,700 652,031 661,061 660,679 659,592 657,313 Deposits: 41 Demand deposits 198,648 199,048 195,278 192,444 201,238 204,664 203,106 193,776 191,843 42 Individuals, partnerships, and corporations. 139,241 144,463 140,863 135,804 142,471 141,833 146,071 140,360 138,758 43 States and political subdivisions 5,695 5,558 5,745 5,597 6,709 5,559 6,674 5,879 5,666 44 U.S. Government 3,760 1,309 2,327 4,857 1,303 1,037 1,559 978 970 Domestic interbank: 45 Commercial 31,243 31,242 29,982 30,108 31,091 38,541 31,054 30,196 29,769 46 Mutual savings 1,071 973 872 824 955 953 873 773 711 Foreign: 47 Governments, official institutions, etc.... 1,723 1,143 1,255 1,342 1,606 1,314 1,402 1,297 1,354 48 Commerial banks 6,565 7,131 6,829 6,323 6,838 7,421 6,934 6,740 6,463 49 Certified and officers' checks 9,350 7,229 7,405 7,589 10,265 8,006 8,539 7,553 8,152 50 Time and savings deposits3 272,501 271,331 272,376 274,903 276,532 277,972 279,234 281,054 280,968 51 Savings4 92,091 91,838 91,668 91,415 90,808 90,942 90,495 90,276 90,079 52 Time: 180,410 179,493 180,708 183,488 185,724 187,030 188,739 190,778 190,889 53 Individuals, partnerships, and corps 139,479 138,909 139,857 141,814 143,870 144,793 146,354 147,863 148,280 54 States and political subdivisions 26,158 26,161 26,444 26,728 26,516 26,794 26,626 27,048 26,782 55 Domestic interbank 6,736 6,354 6,340 6,704 7,134 7,191 7,437 7,525 7,646 56 Foreign govts., official institutions, etc... 6,366 6,404 6,408 6,586 6,503 6,589 6,623 6,646 6,484 57 Federal funds purchased, etc.5 82,175 86,103 79,643 84,438 81,815 83,824 81,344 84,770 84,881 Borrowings from: 58 Federal Reserve Banks 1,090 282 1,193 1,062 1,123 470 945 594 795 59 Others 6,737 6,859 7,248 7,476 8,136 10,059 10,736 14,194 12,726 60 Other liabilities, etc. 6 34,698 34,133 34,436 35,086 35,666 36,478 37,801 37,663 38,466 61 Total equity capital and subordinated notes/debentures7 47,114 47,192 47,102 47,291 47,521 47,594 47,513 47,541 47,634 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 reserve 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 All 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1978 Account Oct. 4 Oct. 11 Oct. 18 Oct. 25 Nov. If Nov. 8p Nov. 15P Nov. 22p Nov. 29* 1 Total loans and investments 98,005 96,646 96,714 97,288 99,672 101,323 100,781 100,092 99,600 Loans: 2 Federal funds sold1 4,439 3,886 4,024 4,839 4,843 6,131 5,101 5,946 6,351 3 To commercial banks 2,364 2,404 2,354 2,725 2,265 3,949 2,736 3,835 4,511 To brokers and dealers involving— 4 U.S. Treasury securities 1,542 965 1,078 1,089 1,374 1,479 1,788 1,647 1,464 5 Other securities 4 4 4 4 6 10 14 9 2 6 To others 529 513 588 1,021 1,198 693 563 455 374 7 Other gross 75,380 74,606 74,859 74,927 77,294 77,765 77,557 76,466 75,966 8 Commercial and industrial 37,282 37,503 37,333 37,856 38,234 38,390 38,547 38,269 38,114 9 Agricultural 155 157 164 170 181 185 189 189 189 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 1,297 590 1,203 766 1,025 1,407 1,543 1,180 759 11 Other securities 4,846 4,516 4,575 4,446 4,683 4,025 4,133 3,756 3,739 To others: 12 U.S. Treasury securities 26 27 28 28 27 27 27 27 27 13 Other securities 358 356 351 361 354 340 340 338 333 To nonbank financial institutions: 14 Personal and sales finance cos., etc 2,857 2,993 3,103 2,919 3,301 3,170 3,123 2,868 2,966 15 Other 4,864 4,861 4,810 4,714 4,778 4,757 4,530 4,441 4,506 16 Real estate 9,708 9,767 9,808 9,851 9,856 9,875 9,921 9,982 9,964 To commercial banks: 17 Domestic 1,024 882 691 720 851 1,212 941 877 1,077 18 Foreign 3,168 3,149 3,110 3,148 3,803 4,226 3,829 3,931 3,783 19 Consumer instalment 4,954 4,989 5,005 5,026 5,042 5,059 5,250 5,285 5,293 20 Foreign govts, official institutions, etc 441 430 429 592 529 527 550 582 644 21 All other loans 4,400 4,386 4,249 4,330 4,630 4,565 4,634 4,741 4,572 22 LESS: Loan loss reserve and unearned income on loans 1,843 1,858 1,864 1,880 1,910 1,911 1,932 1,943 1,953 23 Other loans, net 73,537 72,748 72,995 73,047 75,384 75,854 75,625 74,523 74,013 Investments: 24 U.S. Treasury securities 9,146 8,738 8,584 8,315 8,276 8,261 8,934 8,436 8,283 25 Bills 1,429 982 1,141 848 781 751 111 875 797 Notes and bonds, by maturity: 26 Within 1 year 534 507 627 636 741 835 844 849 933 27 1 to 5 years 5,937 5,915 5,597 5,695 5,749 5,721 5,819 5,315 5,176 28 After 5 years 1,246 1,334 1,219 1,136 1,005 954 1,494 1,397 1,377 29 Other securities 10,883 11,274 11,111 11,087 11,169 11,077 11,121 11,187 10,953 Obligations of States and political subdivisions: 30 Tax warrants, short-term notes, and bills 1,807 1,992 1,963 1,845 1,829 1,677 1,783 1,722 1,630 31 Allother 6,887 7,000 6,866 6,933 6,937 6,994 6,992 7,004 6,998 Other bonds, corporate stocks, and securities: 32 Certificates of participation2 527 529 527 521 520 521 521 520 518 33 All other, including corporate stocks 1,662 1,753 1,755 1,788 1,883 1,885 1,825 1,941 1,807 34 Cash items in process of collection 15,158 14,254 14,568 15,781 16,825 17,060 16,251 15,545 15,911 35 Reserves with Federal Reserve Banks 6,921 8,156 3,715 6,586 4,698 8,374 5,890 5,052 5,533 36 Currency and coin 921 1,010 1,014 1,050 1,014 1,029 1,068 981 1,137 37 Balances with domestic banks 8,220 7,371 8,353 7,677 8,990 10,621 8,051 8,753 8,105 38 Investments in subsidiaries not consolidated..., 1,740 1,760 1,771 1,783 1,819 1,843 1,852 1,853 1,852 39 Other assets 25,015 25,962 26,412 25,486 25,933 27,322 27,414 28,768 27,524 40 Total assets/total liabilities 155,980 155,159 152,547 155,651 158,951 167,572 161,307 161,044 159,662 Deposits : 41 Demand deposits 55,113 53,862 54,377 54,205 56,927 63,258 55,780 54,016 53,398 42 Individuals, partnerships, and corporations 27,652 28,713 28,439 27,172 28,727 29,381 29,758 28,570 27,828 43 States and political subdivisions 501 524 484 536 747 438 628 474 424 44 U.S. Government 1,127 128 368 699 82 114 158 75 77 Domestic interbank: 45 Commercial 14,197 14,716 15,145 16,157 15,110 22,733 14,634 15,319 15,209 46 Mutual savings , 599 524 458 444 469 515 448 375 345 Foreign: 47 Governments, official institutions, etc.... 1,502 928 1,020 1,030 1,346 1,052 1,173 1,068 1,088 48 Commercial banks 4,754 5,384 5,127 4,588 4,899 5,393 5,170 5,005 4,607 49 Certified and officers' checks 4,781 2,945 3,336 3,579 5,547 3,632 3,811 3,130 3,820 50 Time and savings deposits3 46,097 45,919 46,466 46,808 48,108 48,518 49,828 50,290 50,161 51 Savings4 9,585 9,563 9,566 9,485 9,392 9,390 9,343 9,323 9,296 52 Time 36,512 36,356 36,900 37,323 38,716 39,128 40,485 40,967 40,865 53 Individuals, partnerships and corps 27,915 27,580 27,926 28,101 29,372 29,586 30,478 30,853 30,864 54 States and political subdivisions 1,909 1,964 2,000 2,035 2,061 2,099 2,122 2,138 2,102 55 Domestic interbank 2,227 2,275 2,340 2,474 2,642 2,788 3,094 3,133 3,149 56 Foreign govts., official institutions, etc... 3,632 3,713 3,807 3,887 3,822 3,848 3,942 4,022 3,925 57 Federal funds purchased, etc.5 22,433 23,629 19,110 22,072 20,149 22,093 20,180 21,391 21,381 Borrowings from: 58 Federal Reserve Banks 471 * 425 360 480 0 716 0 189 59 Others 3,507 3,563 3,'776 3,905 4,329 4,771 5,039 5,694 5,112 60 Other liabilities, etc. 6 15,059 14,860 15,097 14,978 15,537 15,507 16,332 16,215 15,973 61 Total equity capital and subordinated notes/ debentures7 13,300 13,^26 13,296 13,323 13,421 13,425 | 13,432 13,438 13,448 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 • December 1978 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS OUTSIDE NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1978 Account Oct. 4 Oct. 11 Oct. 18 Oct. 25 Nov. If Nov. 8? Nov. 15^ Nov. 22? Nov. 29*> 1 Total loans and investments. 383,812 384,539 383,535 384,285 386,682 393,362 391,624 390,726 390,833 Loans: Federal funds sold1 21,143 21,005 19,950 20,280 19,804 25,393 21,783 20,578 20,588 To commercial banks 16,711 17,707 15,746 16,989 15,935 20,357 17,277 16,077 16,520 To brokers and dealers involving— U.S. Treasury securities 2,302 1,273 2,136 1,344 1,520 2,740 2,036 1,962 1,695 Other securities 578 625 556 508 742 712 764 842 788 To others 1,552 1,400 1,512 1,439 1,607 1,584 1,706 1,697 1,585 Other, gross 279,424 280,311 280,736 281,088 284,230 285,159 286,377 286,983 287,250 Commercial and industrial 100,509 100,931 100,962 100,920 101,644 101,927 102,181 102,267 102,376 Agricultural 5,205 5,241 5,257 5,250 5,221 5,185 5,210 5,163 5,151 For purchasing or carrying securities: To brokers and dealers: 10 U.S. Treasury securities 139 125 114 97 108 234 173 112 91 11 Other securities 4,365 4,202 4,089 4,018 4,550 4,404 4,039 3,839 3,709 To others: 12 U.S. Treasury securities 83 81 81 82 82 84 82 84 83 13 Other securities 2,219 2,218 2,220 2,214 2,219 2,252 2,258 2,244 2,232 To nonbank financial institutions: 14 Personal and sales finance cos., etc 5,352 5,428 5,442 5,335 5,571 5,582 5,657 5,579 5,527 15 Other 11,096 11,141 11,104 10,895 11,042 11,131 11,218 11,160 11,090 16 Real estate 76,535 76,850 77,255 77,451 77,732 77,926 78,446 78,742 78,935 To commercial banks: 17 Domestic 1,699 1,765 1,632 1,757 1,823 1,903 1,855 2,031 2,073 18 Foreign 3,451 3,501 3,501 3,649 4,057 4,328 4,523 4,567 4,616 19 Consumer instalment 49,253 49,352 49,521 49,670 49,949 50,033 50,299 50,496 50,786 20 Foreign govts., official institutions, etc 1,327 1,370 1,397 1,424 1,435 1,527 1,567 1,536 1,540 21 All other loans 18,191 18,106 18,161 18,326 18,797 18,643 18,869 19,163 19,041 22 LESS: Loan reserve and unearned income on loans 8,903 9,002 9,032 9,076 9,083 9,155 9,202 9,264 9,267 23 Other loans, net 270,521 271,309 271,704 272,012 275,147 276,004 277,175 277,719 277,983 Investments: U.S. Treasury securities 33,900 33,631 33,332 33,409 33,208 33,069 33,487 33,201 33,069 Bills 2,902 2,561 2,500 2,598 2,547 2,501 2,295 2,340 2,339 Notes and bonds, by maturity: Within 1 year 6,402 6,540 6,502 6,576 6,434 6,510 6,470 6,623 6,707 1 to 5 years 20,083 19,966 19,811 19,656 19,753 19,551 20,040 19,664 19,509 After 5 years 4,513 4,564 4,519 4,579 4,474 4,507 4,682 4,574 4,514 Other securities 58,248 58,594 58,549 58,584 58,523 58,896 59,179 59,228 59,193 Obligations of States and political subdivisions : Tax warrants, short-term notes, and bills 4,818 4,131 4,741 4,717 4,694 4,803 4,816 4,689 4,649 All other 38,786 38,880 38,888 38,864 38,749 39,036 39,253 39,346 39,339 Other bonds, corporate stocks, and securities: Certificates of participation2 2,393 2,409 2,413 2,491 2,377 2,361 2,404 2,356 2,424 All other, including corporate stocks... 12,251 12,568 12,507 12,512 12,703 12,696 12,706 12,837 12,781 34 Cash items in process of collection 33,274 33,742 31,280 29,323 33,834 31,959 35,232 33,888 30,981 35 Reserves with Federal Reserve Banks 16,723 16,941 16,283 20,267 17,972 12,131 15,480 18,552 19,221 36 Currency and coin 5,122 5,730 5,793 5,906 5,538 5,454 5,746 5,568 6,586 37 Balances with domestic banks 7,129 8,035 7,140 6,358 7,091 7,426 7,537 7,310 7,414 38 Investments in subsidiaries not consolidated... 1,538 1,586 1,674 1,726 1,671 1,639 1,601 1,662 1,647 39 Other assets 39,385 39,216 39,024 39,184 40,292 41,51S 42,152 40,842 40,969 40 Total assets/total liabilities. 486,983 489,789 484,729 487,049 493,080 493,489 499,372 498,548 497,651 Deposits: 41 Demand deposits 143,535 145,186 140,901 138,239 144,311 141,406 147,326 139,760 138,445 42 Individuals, partnerships, and corporations, , 111,589 115,750 112,424 108,632 113,744 112,452 116,313 111,790 110,930 43 States and political subdivisions 5,194 5,034 5,261 5,061 5,962 5,121 6,046 5,405 5,242 44 U.S. Government 2,633 1,181 1,959 4,158 1,221 923 1,401 903 893 Domestic interbank: 45 Commercial 17,046 16,526 14,837 13,951 15,981 15,808 16,420 14,877 14,560 46 Mutual savings 472 449 414 380 486 438 425 398 366 Foreign: 47 Governments, official institutions, etc— 221 215 235 312 260 262 229 229 266 48 Commercial banks 1,811 1,747 1,702 1,735 1,939 2,028 1,764 1,735 1,856 49 Certified and officers' checks 4,569 4,284 4,069 4,010 4,718 4,374 4,728 4,423 4,332 50 Time and savings deposits3 226,404 225,412 225,910 228,095 228,424 229,454 229,406 230,764 230,807 51 Savings4 82,506 82,275 82,102 81,930 81,416 81,552 81,152 80,953 80,183 52 Time 143,898 143,137 143,808 146,165 147,008 147,902 148,254 149,811 150,024 53 Individuals, partnerships, and corps. 111,564 111,329 111,931 113,713 114,498 115,207 115,876 117,010 117,416 54 States and political subdivisions 24,249 24,197 24,444 24,693 24,455 24,695 24,504 24,910 24,680 55 Domestic interbank 4,509 4,079 4,000 4,230 4,492 4,403 4,343 4,392 4,497 56 Foreign govts., official institutions, etc.. 2,734 2,691 2,601 2,699 2,681 2,741 2,681 2,624 2,559 57 Federal funds purchased, etc. 5 . 59,742 62,474 60,533 62,366 61,666 61,731 61,164 63,379 63,500 Borrowings from: 58 Federal Reserve Banks 619 282 768 702 643 470 229 594 606 59 Others 3,230 3,296 3,472 3,571 3,807 5,288 5,697 8,500 7,614 60 Other liabilities, etc. 6 19,639 19,273 19,339 20,108 20,129 20,971 21,469 21,448 22,493 61 Total equity capital and subordinated notes/debentures 7 33,814 33,866 33,806 33,968 34,100 34,169 34,081 34,103 34,186 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 Oct. 4 Oct. 11 Oct. 18 Oct. 25 Nov. If Nov. 8*> Nov. 15p Nov. 29*> Total loans (gross) and investments adjusted1 1 Large Banks 470,765 469,287 470,722 470,338 476,473 478,330 480,730 479,205 477,472 2 New York City banks 96,460 95,218 95,533 95,723 98,466 98,073 99,036 97,323 95,965 3 Banks outside New York City 374,305 374,069 375,189 374,615 378,007 380,257 381,694 381,882 381,507 Total loans (gross), adjusted 4 Large banks 358,588 357,050 359,146 358,943 365,297 367,027 368,009 367,153 365,974 5 New York City banks 76,431 75,206 75,838 76,321 79,021 78,735 78,981 77,700 76,729 6 Banks outside New York City 282,157 281,844 283,308 282,622 286,276 288,292 289,028 289,453 289,245 Demand deposits, adjusted2 7 Large Banks 115,213 118,501 117,121 112,375 118,185 116,067 119,010 113,169 114,212 8 New York City banks 24,631 24,764 24,296 21,568 24,910 23,351 24,737 23,077 22,201 9 Banks outside New York City 90,582 93,737 92,825 90,807 93,275 92,716 94,273 90,092 92,011 Large negotiable time CD's included in time and savings deposits3 Total: 10 Large banks 90,230 89,329 89,987 92,248 94,306 95,430 96,673 97,589 97,703 11 New York City 24,818 24,738 25,149 25,605 26,956 27,382 28,606 29,003 28,916 12 Banks outside New York City 65,412 64,591 64,838 66,643 67,350 68,048 68,067 68,586 68,787 Issued to IPC's: 13 Large banks 63,916 63,293 63,876 65,443 67,286 68,117 69,148 69,987 70,235 14 New York City Banks 17,706 17,491 17,730 17,936 19,137 19,389 20,190 20,486 20,479 15 Banks outside New York City 46,210 45,802 46,146 47,507 48,149 48,728 48,958 49,501 49,756 Issued to others: 16 Large banks 26,314 26,036 26,111 26,805 27,020 27,313 27,525 27,602 27,468 17 New York City banks 7,112 7,247 7,419 7,669 7,819 7,993 8,416 8,517 8,437 18 Banks outside New York City 19,202 18,789 18,692 19,136 19,201 19,320 19,109 19,085 19,031 All other large time deposits4 Total: 19 Large banks 34,786 34,653 35,084 35,411 35,748 36,073 36,132 36,884 36,732 20 New York City banks 6,672 6,597 6,703 6,720 6,948 7,025 6,963 7,030 7,037 21 Banks outside New York City 28,114 28,056 28,381 28,691 28,800 29,048 29,169 29,854 29,695 Issued to IPC's: 22 Large banks 21,057 21,059 21,258 21,391 21,830 21,940 22,045 22,399 22,465 23 New York City banks 5,350 5,266 5,329 5,342 5,602 5,584 5,460 5,512 5,551 24 Banks outside New York City 15,707 15,793 15,929 16,049 16,228 16,356 16,585 16,887 16,914 Issued to others: 25 Large banks 13,729 13,594 13,826 14,020 13,918 14,133 14,087 14,485 14,267 26 New York City banks 1,322 1,331 1,374 1,378 1,346 1,441 1,503 1,518 1,486 27 Banks outside New York City 12,407 12,263 12,452 12,642 12,572 12,692 12,584 12,967 12,781 Savings deposits, by ownership category Individuals and nonprofit organizations: 28 Large banks 85,750 85,470 85,319 84,937 84,581 84,683 84,301 84,140 83,925 29 New York City banks 8,894 8,863 8,853 8,801 8,741 8,737 8,719 8,704 8,669 30 Banks outside New York City 76,856 76,607 76,466 76,130 75,840 75,946 75,582 75,436 75,256 Partnerships and corporations for profit:5 31 Large banks 5,121 5,124 5,102 5,163 5,111 5,135 5,105 5,055 5,064 32 New York City banks 481 All 473 470 462 457 449 440 448 33 Banks outside New York City 4,640 4,647 4,629 4,693 4,649 4,678 4,656 4,615 4,616 Domestic governmental units: 34 Large banks 1,197 1,225 1,223 1,297 1,095 1,096 1,065 1,058 1,066 35 New York City banks 194 212 223 197 180 180 166 168 167 36 Banks outside New York City 1,003 1,013 1,000 1,100 915 916 899 890 899 All other:6 37 Large banks 23 19 24 18 21 28 24 23 24 38 New York City banks 16 11 17 11 9 16 9 12 39 Banks outside New York City 7 7 7 12 12 15 12 12 Gross liabilities of banks to their foreign branches 40 Large banks 6,437 6,470 6,323 7,674 8,561 8,037 9,428 7,732 8,973 41 New York City banks 3,613 3,312 2,997 4,027 5,253 4,162 6,220 3,984 4,440 42 Banks outside New York City 2,824 3,158 3,326 3,647 3,308 3,275 3,208 3,748 4,533 Loans sold outright to selected institutions by all large banks7 43 Commercial and industrial8 1,961 1,972 2,086 ,886 1,911 1,898 1,846 1,796 1,859 44 Real estate8 287 288 283 288 291 295 296 305 297 45 All other8 1,748 1,736 1,648 ,678 1,592 1,563 1,540 1,569 1,564 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 • December 1978 1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS Commercial and Industrial Loans Millions of dollars Outstanding Net change during— Industry classification 1978 1978 1978 Nov. 1 Nov. 8 Nov. 15 Nov. 22 Nov. 29 & Q2 Q3 Sept. Oct. Nov.f Total loans classified2 1 Total 114,145 114,564 114,760 114,709 114,542 5,384 1,346 1,791 1,813 1,229 Durable goods manufacturing: 2 Primary metals 2,688 2,685 2,692 2,677 2,597 43 -66 11 -68 -67 3 Machinery 5,452 5,438 5,476 5,432 5,464 177 -16 64 61 15 4 Transportation equipment 2,646 2,659 2,650 2,586 2,626 66 -52 51 -159 38 5 Other fabricated metal products. 2,431 2,431 2,434 2,425 2,409 181 69 129 -78 -35 6 Other durable goods 3,953 3,994 3,986 3,966 3,985 382 136 102 -79 19 Nondurable goods manufacturing: Food, liquor, and tobacco 4,373 4,394 4,412 4,468 4,531 409 -101 2 186 191 Textiles, apparel, and leather... 4,224 4,252 4,171 4,080 3,985 565 240 -56 -110 -288 Petroleum refining 2,483 2,546 2,612 2,602 2,569 159 -116 -45 -47 95 Chemicals and rubber 3,290 3,306 3,295 3,264 3,224 154 -101 69 -173 -71 Other nondurable goods 2,475 2,444 2,448 2,470 2,446 61 213 81 -47 13 12 Mining, including crude petroleum and natural gas 10,446 10,518 10,648 10,663 10,628 883 172 124 17 34 Trade: 13 Commodity dealers 1,866 1,899 1,835 1,807 1,789 -187 -323 -22 61 -16 14 Other wholesale 9,574 9,579 9,584 9,540 9,521 458 232 199 279 70 15 Retail 8,865 8,924 8,979 9,020 8,959 639 -80 132 636 129 16 Transportation 5,531 5,493 5,454 5,527 5,513 -147 53 157 34 -15 17 Communication 1,786 1,737 1,782 1,747 1,766 249 68 55 -20 53 18 Other public utilities 5,463 5,549 5,531 5,600 5,541 38 89 -15 245 197 19 Construction 5,144 5,116 5,127 5,121 5,116 483 110 17 '-66 -39 20 Services 14,193 14,268 14,331 14,383 14,423 1,134 520 413 219 245 21 All other domestic loans 8,387 8,520 8,460 8,429 8,445 296 282 6 257 152 22 Bankers acceptances 3,711 3,579 3,478 3,459 3,573 -429 -149 233 210 251 23 Foreign commercial and industrial loans 5,164 5,233 5,375 5,443 5,432 -230 166 84 455 258 MEMO ITEMS: 24 Commercial paper included in total classified loans1 62 -60 -8 18 -1 25 Total commercial and industrial loans of all large weekly reporting banks 139,878 140,317 140,728 140,536 140,490 6,601 1,333 1,742 r2,066 1,714 1978 1978 1978 July 26 Aug. 30 Sept. 27 Oct. 25p Nov. 29^ Q2r Q3 Sept. Oct. Nov." "Term" loans classified3 26 Total 51,905 52,618 53,019 53,762 54,705 1,820 1,726 401 743 943 Durable goods manufacturing: 27 Primary metals 1,695 1,710 1,672 1,641 1,631 128 -34 -38 -31 -10 28 Machinery 2,712 2,669 2,650 2,768 2,751 17 74 -19 118 -17 29 Transportation equipment 1,439 1,586 1,565 1,506 1,492 -69 145 -21 -59 -14 30 Other fabricated metal products... 1,000 990 1,007 1,004 1,035 87 13 17 -3 31 31 Other durable goods 1,718 1,699 1,713 1,717 1,796 106 35 14 4 79 Nondurable goods manufacturing: 32 Food, liquor, and tobacco 1,691 1,740 1,727 1,862 1,977 150 56 -13 135 115 33 Textiles, apparel, and leather 1,138 1,133 1,126 1,096 1,046 72 4 -7 -30 -50 34 Petroleum refining 1,882 1,882 1,846 1,789 1,837 74 -101 -36 -57 48 35 Chemicals and rubber 2,418 2,322 2,301 2,109 2,037 287 -111 -21 -192 -72 36 Other nondurable goods 1,103 1,156 1,177 1,192 1,205 -86 86 21 15 13 37 Mining, including crude petroleum and natural gas 7,660 7,757 7,862 7,852 7,917 661 102 105 -10 65 Trade: 38 Commodity dealers 233 248 250 268 305 -24 22 2 18 37 39 Other wholesale 2,233 2,276 2,360 2,329 2,372 187 185 84 -31 43 4 4 4 4 4 4 4 1 2 0 3 4 5 6 C C O T S A e r o o l t r R l h a m n v n e o e s i m r s t t t c a h r p e u p u i e s o l u n r c r b i t t c d i a l o a i o t c n t i m o i u o n e n t s i l t i i t c i e l s o ans 2 2 2 6 3 3 1 , , , , , , , 7 1 4 6 5 0 7 7 6 3 8 7 9 1 7 1 6 2 8 2 4 2 2 2 6 3 3 1 , , , , , , , 8 6 2 6 7 8 0 2 1 4 0 3 6 5 7 6 5 6 2 0 7 2 2 2 6 3 3 1 , , , , , , , 7 7 7 2 7 8 0 9 9 1 5 4 2 7 1 7 3 3 7 4 6 2 6 2 3 3 3 1 , , , , , , , 2 0 9 7 7 9 0 6 1 3 6 9 6 6 5 8 6 4 8 5 0 4 2 7 2 3 3 1 , , , , , , , 0 2 1 2 8 7 1 5 8 2 0 6 3 0 3 8 4 4 0 2 2 - - - 1 2 1 2 6 4 9 3 6 4 0 8 9 3 6 1 7 0 5 - 3 3 3 1 4 6 9 0 1 0 1 3 7 3 7 8 7 5 - - - 1 1 2 3 2 9 9 1 3 1 6 1 7 1 9 - - 2 1 1 1 3 4 7 3 1 8 1 5 0 4 9 3 5 1 1 9 2 6 6 5 3 1 3 4 2 8 9 7 4 47 Forei l g o n a ns c ommercial and industrial 2,543 2,507 2,562 2,823 2,941 -185 86 55 261 118 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 22222 FFFFFiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll bbbbbuuuuusssssiiiiinnnnneeeeessssssssss 19.0 20.1 22.3 21.6 25.9 23.7 25.0 24.5 25.7 25.9 118.8 125.1 130.2 125.1 129.2 128.5 142.9 131.5 137.7 142.5 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.. Apr. May June July Aug. Sept. Oct. 77777 AAAAAllllllllll hhhhhooooollllldddddeeeeerrrrrsssss,,,,, iiiiinnnnndddddiiiiivvvvviiiiiddddduuuuuaaaaalllllsssss,,,,, pppppaaaaarrrrrtttttnnnnneeeeerrrrrssssshhhhhiiiiipppppsssss,,,,, aaaaannnnnddddd 124.4 128.5 139.1 135.6 134.3 136.9 139.9 137.7 139.7 141.3 15.6 17.5 18.5 17.9 18.1 19.0 19.4 19.4 18.9 19.1 99999 NNNNNooooonnnnnfffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll bbbbbuuuuusssssiiiiinnnnneeeeessssssssss 69.9 69.7 76.3 70.9 70.7 71.9 73.7 72.0 74.1 75.0 1111100000 CCCCCooooonnnnnsssssuuuuummmmmeeeeerrrrr 29.9 31.7 34.6 37.6 36.0 36.6 37.1 36.8 37.1 37.5 1111111111 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 2.3 2.6 2.4 2.2 2.4 2.3 2.3 2.4 2.4 2.5 1111122222 OOOOOttttthhhhheeeeerrrrr 6.6 7.1 7.4 7.0 7.1 7.1 7.3 7.1 7.3 7.2 NOTE.—Figures include cash items in process of collection. Estimates of banks. Types of depositors in each category are described in the June 1971 gross deposits are based on reports supplied by a sample of commercial BULLETIN, p. 466. 1.33 COMMERCIAL PAPER AND BANKERS ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1978 11997755 11997766 11997777 IInnssttrruummeenntt DDeecc.. DDeecc.. DDeecc.. Apr. May June July Aug. Sept. Oct. Commercial paper (seasonally adjusted) 48,459 53,025 65,209 70,289 71,213 74,536 74,900 73,960 r76,988 77,152 FFFFiiiinnnnaaaannnncccciiiiaaaallll ccccoooommmmppppaaaannnniiiieeeessss::::1111 DDDDeeeeaaaalllleeeerrrr----ppppllllaaaacccceeeedddd ppppaaaappppeeeerrrr::::2222 2222 TTTToooottttaaaallll 6,202 7,250 8,871 9,670 10,314 10,327 10,617 10,868 n1,470 10,921 3333 BBBBaaaannnnkkkk----rrrreeeellllaaaatttteeeedddd 1,762 1,900 2,132 2,078 2,217 2,442 2,633 2,935 2,622 2,868 DDDDiiiirrrreeeeccccttttllllyyyy----ppppllllaaaacccceeeedddd ppppaaaappppeeeerrrr::::3333 4444 TTTToooottttaaaallll 31,374 32,500 40,496 44,326 44,664 47,315 46,594 45,510 47,791 48,030 6,892 5,959 7,102 7,995 9,258 9,585 10,030 9,634 10,383 10,925 10,883 13,275 15,842 16,293 16,235 16,894 17,689 17,582 17,727 18,201 Dollar acceptances (not seasonally adjusted) 7777 TTTToooottttaaaallll 1188,,772277 2222,,552233 2255,,665544 26,256 26,714 2288,,228899 27,579 28,319 2277,,995522 30,579 HHHHeeeelllldddd bbbbyyyy:::: 8888 AAAAcccccccceeeeppppttttiiiinnnngggg bbbbaaaannnnkkkkssss 77,,333333 1100,,444422 1100,,443344 7,091 7,286 77,,550022 7,244 7,048 77,,664477 8,379 9999 OOOOwwwwnnnn bbbbiiiillllllllssss 55,,889999 88,,776699 88,,991155 6,117 6,365 66,,552200 6,345 6,131 66,,446611 7,012 11110000 BBBBiiiillllllllssss bbbboooouuuugggghhhhtttt 11,,443355 11,,667733 11,,551199 974 921 998833 899 917 11,,118866 1,366 FFFF....RRRR.... BBBBaaaannnnkkkkssss:::: 11111111 OOOOwwwwnnnn aaaaccccccccoooouuuunnnntttt 11,,112266 999911 995544 12 Foreign correspondents 229933 337755 336622 550 679 662255 568 633 555566 557 13 Others 99,,997755 1100,,771155 1133,,990044 18,614 18,749 2200,,116600 19,766 20,638 1199,,774488 21,644 Based on: 14 Imports into United States 33,,772266 44,,999922 66,,553322 7,108 7,027 77,,557788 7,415 7,885 77,,995577 8,575 15 Exports from United States 44,,000011 44,,881188 55,,889955 6,216 6,494 66,,990066 6,565 6,558 66,,335500 6,665 16 All other 1111,,000000 1122,,771133 1133,,222277 12,932 13,193 1133,,880055 13,599 13,876 1133,,664444 15,339 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 • December 1978 1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans Per cent per annum Month Average Month Effective date Rate Effective date Rate rate 1978—Jan. 10. 1978—Sept. 15 9% 1977—Jan 6.25 1978—Jan.. 28, 99%% Feb 6.25 Feb. May 5 8% Mar 6.25 Mar. 26 81/2 Oct. 13 10 Apr 6.25 Apr. 27, 10% May 6.41 May. June 16 8*4 June 6.75 June, 30 9 Nov. 1 6 1 10 0 % i/2 J A u u l g y 6 6 . . 7 8 5 3 J A u u l g y . . Aug. 31. 9% 17, 11 Sept 7.13 Sept. 24, 1111%% 7.52 Oct.. Nov 7.75 Nov. 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 i 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 * 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 i 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 1976 1977 Aug. Sept. Oct. Nov. Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2 Money market rates 1 Federal funds1 5.82 5.05 5.54 8.04 8.45 8.96 9.76 9.29 9.77 9.68 9.68 9.85 Prime commercial paper2'3 2 90- to 119-day 6.26 5.24 5.54 7.83 8.39 8.98 10.14 9.62 10.16 10.28 10.13 10.20 3 4- to 6-month 6.33 5.35 5.60 7.90 8.44 9.03 10.23 9.68 10.27 10.38 10.22 10.28 4 Finance company paper, directly placed, 3- to 6-month3-4 6.16 5.22 5.49 7.65 8.18 8.78 99..8822 99..2266 9.87 99..9922 99..9900 99..8899 5 Prime bankers acceptances, 90-day3-5 6.30 5.19 5.59 7.98 8.54 9.32 10.53 10.46 10.63 10.47 10.40 10.52 Large negotiable certificates of deposit 6 6.43 5.26 5.58 8.05 8.61 9.14 10.72 10.10 10.77 10.84 10.59 10.66 7 5.15 5.52 7.86 8.42 9.17 10.12 9.83 10.00 10.25 10.25 10.25 8 Euro-dollar deposits, 3-month 8 6.97 5.57 6.05 8.48 9.12 10.12 11.51 11.08 11.44 11.70 11.28 11.66 U.S. Government securities Bills:3-9 Market yields: 9 3-month 5.80 4.98 5.27 7.08 7.85 7.99 8.64 8.73 8.79 8.14 8.63 8.98 10 6-month 6.11 5.26 5.53 7.37 7.99 8.55 9.24 9.26 9.42 9.08 9.07 9.27 11 1-year 6.30 5.52 5.71 7.73 8.01 8.45 9.20 9.17 9.32 9.08 9.12 9.29 Rates on new issue:10 12 3-month 5.838 4.989 5.265 7.036 7.836 8.132 8.787 8.454 9.028 8.593 8.696 9.166 13 6-month 6.122 5.266 5.510 7.363 7.948 8.493 9.204 8.982 9.419 9.291 8.996 9.330 Capital market rates Government notes and bonds U.S. Treasury Constant maturities:11 14 1-year 6.76 5.88 6.09 8.31 8.64 9.14 10.01 9.95 10.16 9.89 9.92 10.11 15 2-year 6.45 8.37 8.57 8.85 9.42 9.44 9.48 9.31 9.35 9.56 16 3-year 7.49 6.77 6.69 8.33 8.41 8.62 9.04 9.12 9.10 8.95 8.96 9.16 17 5-year 7.77 7.18 6.99 8.33 8.43 8.61 8.84 8.89 8.86 8.78 8.81 8.92 18 7-year 7.90 7.42 7.23 8.38 8.42 8.64 8.80 8.82 8.84 8.76 8.78 8.88 19 10-year 7.99 7.61 7.42 8.41 8.42 8.64 8.81 8.82 8.86 8.77 8.78 8.85 20 20-year 8.19 7.86 7.67 8.45 8.47 8.69 8.75 8.80 8.80 8.72 8.72 8.78 2211 30-year 88..4477 88..4477 88..6677 88..7755 88..7777 88..8811 88..7722 88..7733 88..7788 Notes and bonds maturing in —12 22 3 to 5 years 7.55 6.94 6.85 8.31 8.38 8.61 8.97 9.05 9.04 8.93 8.87 9.01 23 Over 10 years (long-term) 6.98 6.78 7.06 7.87 7.82 8.07 8.16 8.19 8.21 8.12 8.13 8.21 State and local: Moody's series:13 24 Aaa 6.42 5.66 5.20 5.56 5.53 5.53 5.59 5.70 5.65 5.50 5.55 5.55 25 Baa 7.62 7.49 6.12 6.54 6.63 6.18 6.65 6.50 6.70 6.60 6.65 6.80 26 Bond Buyer series14 7.05 6.64 5.68 6.12 6.09 6.13 6.19 6.22 6.17 6.11 6.16 6.29 Corporate bonds Seasoned issues15 27 All industries 9.57 9.01 8.43 9.08 9.08 9.20 9.40 9.39 9.42 9.40 9.38 9.39 By rating groups: 28 Aaa 88..8833 88..4433 88..0022 8.69 8.78 8.89 9.03 9.04 9.06 9.02 9.00 9.04 29 Aa 9.17 8.75 8.24 8.96 8.96 9.07 9.24 9.24 9.27 9.26 9.22 9.22 30 A 9.65 9.09 8.49 9.18 9.11 9.26 9.48 9.46 9.50 9.49 9.46 9.45 31 Baa 10.61 9.75 8.97 9.48 9.47 9.59 9.83 9.79 9.82 9.83 9.82 9.85 Aaa utility bonds:16 32 New issue 9.40 8.48 8.19 8.82 8.86 9.17 9.27 9.25 9.30 9.25 9.30 33 Recently offered issues 9.41 8.49 8.19 8.91 8.86 9.13 9.27 9.28 9.30 9.24 9.25 9.29 Dividend/price ratio 34 Preferred stocks 8.38 77..9977 7.60 8.26 88..2244 8.29 8.43 8.39 8.42 8.57 8.38 8.41 35 Common stocks 4.31 3.77 4.56 4.93 4.97 5.11 5.45 5.38 5.44 5.54 5.42 5.49 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. 10 Rates are recorded in the week in which bills are issued. 2 Beginning Nov. 1977, unweighted average of offering rates quoted 11 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. 7 Posted rates, which are the annual interest rates most often quoted Issues included are long-term (20 years or more). New-issue yields on new offerings of negotiable CD's in denominations of $100,000 or are based on quotations on date of offering; those on recently offered more by large New York City banks. Rates prior to 1976 not available. issues (included only for first 4 weeks after termination of underwriter Weekly figures are for Wednesday dates. price restrictions), on Friday close-of-business quotations. 8 Averages of daily quotations for the week ending Wednesday. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic NonfinancialS tatistics • December 1978 1.37 STOCK MARKET Selected Statistics 1978 Indicator 1975 1976 1977 May June July Aug. Sept. Oct. Nov. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31,1965 = 50). 45.73 54.45 53.67 54.49 54.83 54.61 58.53 58.58 56.40 52.74 51.88 60.44 57.84 59.14 59.63 59.35 64.07 64.23 61.60 57.50 30.73 39.57 41.07 44.21 44.19 44.74 49.45 50.19 46.70 41.80 4 Utility 31.45 36.97 40.91 39.47 39.41 39.28 40.20 39.82 39.44 37.88 5 Finance 46.62 52.94 55.23 57.95 58.31 57.97 63.28 63.22 60.42 54.95 6 Standard & Poor's Corporation (1941-43 = 10)1.. 85.17 102.01 98.18 97.41 97.66 97.19 103.92 103.86 100.58 94.71 7 American Stock Exchange (Aug. 31,1973 = 100). 83.15 101.63 116.18 142.26 147.64 149.87 162.52 170.95 160.14 144.17 Volume of trading (thousands of shares)2 8 New York Stock Exchange 18,568 21,189 20,936 35,261 30,514 27,074 37,603 33,612 31,020 24,505 9 American Stock Exchange 2,150 2,565 2,514 4,869 4,220 3,496 5,526 5,740 4,544 3,304 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers/dealers3 5,540 8,166 9,993 10,910 11,332 11,438 11,984 12,626 12,307 11 Margin stock4 5,390 7,960 9,740 10,660 11,090 11,190 11,740 12,400 12,090 12 Convertible bonds 147 204 250 245 242 247 243 225 216 13 Subscription issues 3 2 3 1 1 1 MEMO: Free credit balances at brokers6 14 Margin-account 475 585 640 755 700 710 795 825 2,464 15 Cash-account 1,525 1,855 2,060 2,395 2,300 2,295 2,555 2,655 885 Margin-account debt at brokers (percentage distribution, end of period) 16 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 By equity class (in per cent):7 17 Under 40 24.0 12.0 18.0 15.0 16.0 13.0 12.0 15.0 47.0 18 40-49 28.8 23.0 36.0 33.0 34.0 34.0 34.0 36.0 20.0 19 50-59 22.3 35.0 23.0 26.0 26.0 25.0 23.0 23.0 15.0 20 60-69 11.6 15.0 11.0 13.0 12.0 14.0 16.0 13.0 8.0 21 70-79 6.9 8.7 6.0 7.0 7.0 8.0 9.0 7.0 5.0 22 80 or more 5.3 6.0 5.0 6.0 5.0 6.0 6.0 6.0 5.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)«... 7,290 8,776 9,910 10,516 Distribution by equity status (per cent) 24 Net credit status 43.8 41.3 43.4 42.6 Debit status, equity of— 25 60 per cent or more 40.8 47.8 44.9 46.0 26 Less than 60 per cent 15.4 10.9 11.7 11.4 t 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 brokers, such stocks have no loan value. utility (formerly 60), and 40 financial. 6 Free credit balances are in accounts with no unfulfilled commitments 2 Based on trading for a 5-hour day. to the brokers and are subject to withdrawal by customers on demand. 3 Margin credit includes all credit extended to purchase or carry 7 Each customer's equity in his collateral (market value of collateral stocks or related equity instruments and secured at least in part by stock. less net debit balance) is expressed as a percentage of current collateral Credit extended is end-of-month data for member firms of the New York values. Stock Exchange. 8 Balances that may be used by customers as the margin deposit re- In addition to assigning a current loan value to margin stock generally, quired for additional purchases. Balances may arise as transfers based Regulations T and U permit special loan values for convertible bonds on loan values of other collateral in the customer's margin account or and stock acquired through exercise of subscription rights. deposits of cash (usually sales proceeds) occur. 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 Account Feb. Mar. Apr. May June July Aug. Sept. Oct.* Savings and loan associations9 1 Assets 338,233 391,907 459,241 469,685 475,281 480,947 487,052 491,576 498,301 504,298 508,977 515,216 2 Mortgages 278,590 323,005 381,163 387,591 392,428 397,284 402,305 407,965 411,956 416,677 420,971 425,093 3 Cash and investment securities1 30,853 35,724 39,150 41,599 41,823 41,853 42,444 41,505 43,627 44,188 43,987 45,621 4 Other 28,790 33,178 38,928 40,495 41,030 41,810 42,303 42,106 42,718 43,433 44,019 44,502 5 Liabilities and net worth 338,233 391,907 459,241 469,685 475,281 480,947 487,052 491,576 498,301 504,298 508,977 515,216 6 Savings capital 285,743 335,912 386,800 391,840 398,992 399,550 401,930 408,586 411,660 413,972 420,405 422,858 7 Borrowed money 20,634 19,083 27,840 28,714 29,323 31,904 32,759 34,270 35,730 37,219 38,595 39,920 8 FHLBB 17,524 15,708 19,945 20,602 21,030 22,692 23,323 24,875 26,151 27,363 28,632 29,506 9 Other 3,110 3,375 7,895 8,112 8,293 9,212 9,436 9,395 9,579 9,856 9,963 10,414 10 Loans in process 5,128 6,840 9,911 9,902 10,414 10,937 11,386 11,632 11,540 11,422 11,222 11,183 11 Other 6,949 8,074 9,506 13,462 10,518 12,186 14,239 10,046 11,972 13,906 10,676 12,834 12 Net worth2 19,779 21,998 25,184 25,767 26,034 26,370 26,738 27,042 27,399 27,779 28,079 28,421 13 MEMO : Mortgage loan commitments outstandings.. 10,673 14,826 19,875 20,614 22,308 23,398 23,939 22,927 22,393 22,047 21,648 21,337 Mutual savings banks10 14 Assets 121,056 134,812 147,287 149,528 150,962 151,383 152,202 153,175 154,315 155,210 156,110 Loans: 15 Mortgage 77,221 81,630 88,195 89,247 89,800 90,346 90,915 91,555 92,230 92,866 93,403 16 Other 4,023 5,183 6,210 7,398 7,782 7,422 7,907 7,771 8,207 8,379 8,418 Securities: 17 U.S. Government 4,740 5,840 5,895 5,737 5,677 5,670 5,491 5,304 5,269 5,210 5,172 18 State and local government. 1,545 2,417 2,828 2,808 2,850 2,915 2,994 3,008 3,025 3,098 3,180 19 Corporate and other4 27,992 33,793 37,918 38,605 38,964 39,146 39,225 39,427 39,639 39,592 39,639 20 Cash 2,330 2,355 2,401 1,838 1,990 1,940 1,798 2,163 2,029 2,080 2,293 21 Other assets 3,205 3,593 3,839 3,895 3,899 3,945 3,873 3,946 3,915 3,985 4,006 22 Liabilities 121,056 134,812 147,287 149,528 150,962 151,383 152,202 153,175 154,315 155,210 156,110 23 Deposits 109,873 122,877 134,017 135,200 136,997 136,931 137,307 138,709 139,128 139,308 140,816 24 Regular: 5 109,291 121,961 132,744 133,846 135,558 135,349 135,785 137,089 137,430 137,690 139,068 25 Ordinary savings 69,653 74,535 78,005 77,837 78,783 78,170 78,273 77,321 76,116 75,578 75,423 26 Time and other 39,639 47,426 54,739 56,009 56,775 57,179 57,512 59,768 61,313 62,112 63,645 27 Other 582 916 1,272 1,354 1,439 1,582 1,521 1,620 1,698 1,619 1,747 28 Other liabilities 2,755 2,884 3,292 4,155 3,735 4,152 4,481 3,969 4,636 5,246 4,570 29 General reserve accounts 8,428 9,052 9,978 10,174 10,230 10,301 10,414 10,497 10,551 10,654 10,725 30 MEMO : Mortgage loan commitments outstanding6.. 1,803 2,439 4,066 4,027 4,185 4,342 4,606 4,958 4,872 4,789 4,561 Life insurance companies11 31 Assets 289,304 321,552 351,722 356,266 359,110 363,269 366,938 369,879 374,415 378,124 381,050 Securities: 32 Government 13,758 17,942 19,553 19,692 19,573 19,330 19,489 19,401 19,447 19,563 19,638 33 United States7 4,736 5,368 5,315 5,373 5,229 5,087 5,206 4,984 5,006 5,155 5,156 34 State and local 4,508 5,594 6,051 6,071 6,041 5,923 5,915 5,943 5,925 5,884 6,001 35 Foreign8 4,514 6,980 8,187 8,248 8,303 8,320 8,368 8,474 8,516 8,524 8,481 36 Business 135,317 157,246 175,654 179,547 181,441 184,917 187,126 188,500 192,112 194,620 196,152 37 Bonds 107,256 122,984 141,891 147,509 148,849 150,419 152,267 153,812 156,207 157,888 159,972 38 Stocks 28,061 34,262 33,763 32,038 32,592 34,498 34,859 34,688 35,905 36,732 36,180 39 Mortgages 89,167 91,552 96,848 97,475 98,022 98,585 99,190 100,040 100,596 101,602 102,365 40 Real estate 9,621 10,476 11,060 11,218 11,213 11,269 11,537 11,540 11,562 11,538 11,583 41 Policy loans 24,467 25,834 27,556 27,839 28,024 28,246 28,431 28,649 28,843 29,067 29,290 42 Other assets 16,971 18,502 21,051 20,495 20,837 20,922 21,165 21,749 21,855 21,734 22,022 Credit unions 43 Total assets/liabilities and capital 38,037 45,225 54,084 54,989 56,703 56,827 58,018 59,381 59,152 60,141 61,277 60,909 44 Federal 20,209 24,396 29,574 30,236 31,274 31,255 31,925 32,793 32,679 33,315 34,058 33,718 45 State 17,828 20,829 24,510 24,753 25,429 25,572 26,093 26,588 26,473 26,826 27,219 27,191 46 Loans outstanding 28,169 34,384 42,055 42,331 43,379 44,133 45,506 47,118 47,620 49,103 50,121 50,549 47 Federal 14,869 18,311 22,717 22,865 23,555 23,919 24,732 25,762 25,970 26,840 27,510 27,697 48 State 13,300 16,073 19,338 19,466 19,824 20,214 20,774 21,356 21,650 22,263 22,611 22,852 49 Savings 33,013 39,173 46,832 48,093 49,706 49,931 50,789 52,076 51,551 51,772 52,867 52,468 50 Federal (shares) 17,530 21,130 25,849 26,569 27,514 27,592 28,128 28,903 28,627 28,779 29,429 29,086 51 State (shares and deposits). 15,483 18,043 20,983 21,524 22,192 22,339 22,661 23,173 22,924 22,993 23,438 23,382 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • December 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 Aug. Sept. Oct. U.S. Budget 1 Receipts1 81,772 357,762 401,997 190,278 175,820 210,650 35,040 42,591 28,745 2 Outlays1 94,742 402,803 450,758 200,350 216,781 222,518 39,572 38,935 42,691 3 Surplus, or deficit (—) -12,970 -45,041 -48,761 -10,072 -40,961 -11,870 -4,532 3,655 -13,946 4 Trust funds -1,952 7.833 12,693 7,332 4,293 4,334 3,890 5,922 1,626 5 Federal funds 2 -11,018 -52,874 -61,454 -17,405 -45,254 -16,204 -8,422 -2,267 -15,572 Off-budget entities surplus, or deficit (-) 6 Federal Financing Bank outlays... -2,575 -8,415 -10,660 -2,075 -6,663 -5,105 -1,056 -753 -975 7 Other 3 793 -269 354 -2,086 428 -790 -525 -29 171 U.S. Budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (—) --1144,,775522 --5555,,772255 -59,067 -14,233 -47,196 -17,765 --66,,111133 -2,873 -14,750 Financed by: 9 Borrowing from the public 1188,,002277 5533,,551166 59,106 16,480 40,284 23,374 99,,003399 2,821 66,,448844 10 Cash and monetary assets (decrease, or increase ( —)) -2,899 -2,238 -3,023 -4,666 4,317 -5,098 -956 -9,731 7,082 11 Other 4 -373 2,440 2,984 2,420 2,597 -511 -1,970 9,783 1,184 MEMO ITEMS : 12 Treasury operating balance (level, end of period) 17,418 19,104 22,444 16,255 12,274 17,526 13,078 22,444 15,545 13 Federal Reserve Banks 13,299 15,740 16,647 15,183 7,114 11,614 12,068 16,647 15,467 14 Tax and loan accounts 4,119 3,364 5,797 1.072 5,160 5,912 1,010 5,797 78 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. Government 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 Association of the Insurance for all life insurance companies in the United States. Annual State of 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 8 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 June, July, and August 1978 have been revised. for a group of Federal and State-chartered credit unions that account for 11 Data for 1977 and the first 6 months of 1978 have been revised by about 30 per cent of credit union assets. Figures are preliminary and the American Council of Life Insurance. 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 Aug. Sept. Oct. Receipts 1 All sources1 81,772 357,762 401,997 190,278 175,820 210,650 35,040 42,591 28,745 2 Individual income taxes, net 38,800 157,626 180,988 78,816 82,911 90,336 14,784 20,883 15,922 3 Withheld 32,949 144,820 165,215 73,303 75,480 82,784 14,370 14,843 15,032 4 Presi F d u en n t d i al Election Campaign 1 37 39 37 j 36 5 Non withheld 6,809 42,062 47,804 32,959 9.397 37,584 868 6,354 1,104 6 Refunds i 958 29,293 32,070 27,482 1,967 30,068 454 314 214 7 Corporation income taxes: 8 Gross receipts 9,808 60,057 65,380 37,133 25,121 38,496 1,509 10,153 2,436 9 Refunds 1,348 5,164 5,428 2,324 2,819 2,782 388 400 752 10 Social insurance taxes and contributions, net 25,760 108,683 123,410 58,099 52,347 66,191 15,587 8,515 7,805 11 Payroll employment taxes and contributions 2 21,534 88,196 99,626 45,242 44,384 51,668 12,191 7,485 6,595 12 Self-employment taxes and contributions 3 269 44,,001144 AA,,226611 33,,668877 316 3,892 369 13 Unemployment insurance 2,698 1111,,331122 1133,,885500 66,,557755 4,936 7,800 2,912 162 722 14 Other net receipts 4 1,259 55,,116622 55,,666688 22,,559955 2,711 2,831 484 499 488 15 Excise taxes 4,473 17,548 18,376 8,432 9,284 8,835 1,591 1,637 1,635 16 Customs deposits 1,212 5,150 6,573 2,519 2,848 3,320 681 610 621 17 Estate and gift taxes 1,455 7,327 5,285 4,332 2,837 2,587 515 445 All 18 Miscellaneous receipts 5 1,612 6,536 7,413 3,269 3,292 3,667 760 747 602 Outlays 8 19 All types i 94,742 402,803 450,758 200,350 216,781 222,518 39,572 38,935 42,691 20 National defense 22,307 97,501 105,192 48,721 50,873 52,979 9,742 9,006 9,197 21 International affairs 2,180 4,831 6,083 2,522 2,896 2,904 987 387 324 22 General science, space, and technology 1,161 4,677 4,721 2,108 2,318 2,395 405 403 367 23 Energy 794 4,172 6,045 2,487 620 933 821 24 Natural resources and environment. 2,532 10,000 11,022 4,959 982 1,391 878 25 Agriculture 584 5,526 7,618 2,628 5,477 2,353 386 283 949 26 Commerce and housing credit 1,391 -31 3,340 -946 -110 467 2,124 27 Transportation 3,306 14,636 15,461 7,723 1,288 1,572 1,695 28 Community and regional development 1,340 6,283 11,255 3,149 4,924 5,928 1,218 1,439 929 29 Education, training, employment, and social services 5,162 20,985 25,889 9,775 10,800 12,792 2,716 2,263 2,144 30 Health 8,720 38,785 44,529 18,654 19,422 21,391 4,039 3,595 4,037 31 Income security1 32,795 137,905 145,640 70,785 71,081 75,201 12,266 12,756 11,815 32 Veterans benefits and services 3,962 18,038 18,987 9,382 9,864 9,603 1,529 1,442 1,647 33 Administration of justice 859 3.600 3,786 1,783 1,723 1,946 317 324 328 34 General government 878 3,357 3,544 1,587 1,749 1,803 340 335 785 35 General-purpose fiscal assistance 2,092 9,499 9,377 4,333 4,926 4,665 36 127 2,019 36 Interest 6 7,246 38,092 44,040 18,927 19,962 22,280 3,539 3,306 3,030 37 Undistributed offsetting receipts 6-7 -2,567 -15,053 -15,772 -6,803 -8,506 -7,945 -729 -1,089 -397 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. Government contributions for classified as outlays retroactive to January 1976. employee 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 Federal Reserve Banks and other miscel- has become "Administration of justice" and "Revenue sharing and laneous receipts. general purpose fiscal assistance" has become "General purpose fiscal 6 Effective September 1976, "Interest" and "Undistributed Offsetting assistance." Receipts" reflect the accounting conversion for the interest on special In addition, for some categories the table includes revisions in figures issues for U.S. Government accounts from an accrual basis to a cash basis. published earlier. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • December 1978 1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1976 1977 1978 IItteemm June 30 Sept. 30 Dec. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 20 Sept. 30 1 Federal debt outstanding 631.9 2 646.4 665.5 685.2 709.1 729.2 747.8 758.8 780.4 2 Public debt securities 620.4 634.7 653.5 674.4 698.8 718.9 738.0 749.0 771.5 3 Held by public 470.8 488.6 506.4 523.2 543.4 564.1 585.2 587.9 603.6 4 Held by agencies 149.6 146.1 147.1 151.2 155.5 154.8 152.7 161.1 168.0 5 Agency securities 11.5 11.6 12.0 10.8 10.3 10.2 9.9 9.8 8.9 6 Held by public 9.5 29.7 10.0 9.0 8.5 8.4 8.1 8.0 7.4 7 Held by agencies 2.0 1.9 1.9 1.8 1.8 1.8 1.8 1.8 1.5 8 Debt subject to statutory limit 621.6 635.8 654.7 675.6 700.0 720.1 739.1 750.2 772.7 9 Public debt securities 619.8 634.1 652.9 673.8 698.2 718.3 737.3 748.4 770.9 10 Other debt1 1.7 1.7 1.7 1.7 1.7 1.7 1.8 1.8 1.8 11 MEMO: Statutory debt limit 636.0 636.0 682.0 700.0 700.0 752.0 752.0 752.0 798.0 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 July Aug. Sept. Oct. Nov. i Total gross public debt 492.7 576.6 653.5 718.9 750.5 764.4 771.5 776.4 By type: 2 Interest-bearing debt 491.6 575.7 652.5 715.2 749.5 763.4 767.0 775.5 3 Marketable 282.9 363.2 421.3 459.9 481.0 485.6 485.2 491.7 4 Bills 119.7 157.5 164.0 161.1 160.1 160.6 160.9 161.2 5 Notes 129.8 167.1 216.7 251.8 266.6 268.5 267.9 272.6 6 Bonds 33.4 38.6 40.6 47.0 54.4 56.4 56.4 57.8 7 208.7 212.5 231.2 255.3 268.4 227.8 281.8 283.8 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 20.8 24.2 24.2 24.1 10 Foreign issues3 22.8 21.6 22.3 22.2 20.8 22.2 21.7 24.0 11 Savings bonds and notes 63.8 67.9 72.3 77.0 79.7 79.9 80.2 80.5 12 Government account series4 119.1 119.4 129.7 139.8 144.7 149.0 153.3 152.7 13 Non-interest-bearing debt 1.1 1.0 1.1 3.7 1.0 1.0 4.6 .9 By holder:5 14 U.S. Government agencies and trust funds. .. 138.2 139.1 147.1 154.8 159.3 163.7 168.0 15 Federal Reserve Banks 80.5 89.8 97.0 102.5 108.9 111.7 114.8 16 Private investors 271.0 349.4 409.5 461.3 482.3 489.0 488.3 17 Commercial banks 55.6 85.1 103.8 101.4 97.7 95.8 95.3 18 2.5 4.5 5.9 5.9 5.6 5.5 5.4 19 Insurance companies 6.2 9.5 12.7 15.1 15.0 15.1 15.1 20 Other corporations 11.0 20.2 27.7 22.7 20.0 22.4 21.5 21 State and local governments 29.2 34.2 41.6 55.2 61.7 69.2 67.8 Individuals: 22 Savings bonds 63.4 67.3 72.0 76.7 79.4 79.7 79.8 23 Other securities 21.5 24.0 28.8 28.6 29.0 29.2 29.4 24 Foreign and international6 58.8 66.5 78.1 109.6 120.5 121.2 121.0 25 Other miscellaneous investors7 22.8 38.0 38.9 46.1 53.4 50.9 52.9 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 \l/i porate pension trust funds, dealers and brokers, certain Govt, deposit per cent, 5-year marketable Treasury notes. Convertible bonds that have accounts, and Govt.-sponsored agencies. been so exchanged are removed from this category and recorded in the notes category above. NOTE.—Gross public debt excludes guaranteed agency securities and, 3 Nonmarketable foreign government dollar-denominated and foreign beginning in July 1974, includes Federal Financing Bank security issues. currency denominated series. Data by type of security from Monthly Statement of the Public Debt of 4 Held almost entirely by U.S. Govt, agencies and trust funds. the United States (U.S. Treasury Dept.); data by holder from Treasury 5 Data for F.R. Banks and U.S. Govt, agencies and trust funds are Bulletin. actual holdings; data for other groups are Treasury estimates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A33 1.43 U.S. GOVERNMENT MARKETABLE SECURITIES Ownership, by maturity Par value; millions of dollars, end of period 1978 1978 TTyyppee ooff hhoollddeerr 1976 1977 1976 1977 Aug. Sept. Aug. Sept. All maturities 1 to 5 years 1 All holders 421,276 459,927 485,557 485,155 141,132 151,264 171,890 168,474 2 U.S. Government agencies and trust funds 16,485 14,420 13,898 13,886 6,141 4,788 3,705 3,705 3 Federal Reserve Banks 96,971 101,191 111,739 114,769 31,249 27,012 31,722 31,775 4 Private investors 307,820 344,315 359,919 356,501 103,742 119,464 136,462 132,993 5 Commercial banks 78,262 75,363 70,817 70,706 40,005 38,691 41,594 40,733 6 Mutual savings banks 4,072 4,379 3,789 3,740 2,010 2,112 2,115 2,062 7 Insurance companies 10,284 12,378 11,852 11,805 3,885 A,129 5,119 4,991 8 Nonfinancial corporations 14,193 9,474 9,776 9,092 2,618 3,183 4,819 4,793 9 Savings and loan associations 4,576 4,817 4,369 4,369 2,360 2,368 2,470 2,441 10 State and local governments 12,252 15,495 19,394 18,075 2,543 3,875 5,150 4,494 11 All others 184,182 222,409 239,922 238,714 50,321 64,505 75,195 73,479 Total, within 1 year 5 to 10 years 12 All holders 211,035 230,691 222,329 225,396 43,045 45,328 49,274 49,273 13 U.S. Government agencies and trust funds 2,012 1,906 2,293 2,281 2,879 2,129 1,987 1,987 14 Federal Reserve Banks 51,569 56,702 56,524 59,296 9,148 10,404 13,684 13,786 15 Private investors 157,454 172,084 163,512 163,819 31,018 32,795 33,603 33,500 16 Commercial banks 31,213 29,All 19,334 2200,,000077 6,278 6,162 7,630 7,423 17 Mutual savings banks 1,214 1,400 860 888800 567 584 551 539 18 Insurance companies 2,191 2,398 1,624 1,685 2,546 3,204 2,869 2,931 19 Nonfinancial corporations 11,009 5,770 4,212 3,655 370 307 376 311 20 Savings and loan associations 1,984 2,236 1,713 1,726 155 143 113 129 21 State and local governments 6,622 7,917 8,392 7,699 1,465 1,283 1,521 1,519 22 All others 103,220 122,885 127,377 128,167 19,637 21,112 20,543 20,648 Bills, within 1 year 10 to 20 years 23 All holders 163,992 161,081 160,615 160,936 11,865 12,906 16,608 16,573 24 U.S. Government agencies and trust funds 449 32 2 1 3,102 3,102 3,273 3,273 25 Federal Reserve Banks 41,279 42,004 45,895 48,160 1,363 1,510 1,928 1,917 26 Private investors 122,264 119,035 114,719 112,775 7,400 8,295 11,407 11,383 27 Commercial banks 17,303 11,996 5,906 5,862 339 456 950 1,060 28 Mutual savings banks 454 484 206 199 139 137 135 132 29 Insurance companies 1,463 1,187 742 750 1,114 1,245 1,317 1,304 30 Nonfinancial corporations 9,939 4,329 2,265 1,657 142 133 159 162 31 Savings and loan associations 1,266 806 374 373 64 54 57 56 32 State and local governments 5,556 6,092 6,166 5,280 718 890 1,133 1,080 33 All others 86,282 94,152 99,060 98,654 4,884 5,380 7,655 7,590 Other, within 1 year Over 20 years 34 All holders 47,043 69,610 61,714 64,460 14,200 19,738 25,457 25,439 35 U.S. Government agencies and trust funds 1,563 1,874 2,291 2,280 2,350 2,495 2,640 2,640 36 Federal Reserve Banks 10,290 14,698 10,630 11,136 3,642 5,564 7,881 7,994 37 Private investors 35,190 53,039 48,793 51,044 8,208 11,679 14,936 14,805 38 Commercial banks 13,910 15,482 13,428 14,145 427 578 1,309 1,483 39 Mutual savings banks 760 916 654 681 143 146 128 128 40 Insurance companies 728 1,211 882 934 548 802 923 894 41 Nonfinancial corporations 1,070 1,441 1,947 1,998 55 81 210 171 42 Savings and loan associations 718 1,430 1,339 1,353 13 16 16 18 43 State and local governments 1,066 rl,825 2,225 2,419 904 1,530 3,199 3,282 44 All others 16,938 28,733 28,318 29,513 6,120 8,526 9,152 8,830 NOTE.—Direct public issues only. Based on Treasury Survey of Owner- banks, 464 mutual savings banks, and 727 insurance companies, each ship from Treasury Bulletin (U.S. Treasury Dept.). about 90 per cent; (2) 435 nonfinancial corporations and 485 savings and Data complete for U.S. Govt, agencies and trust funds and F.R. Banks, loan associations, each about 50 per cent; and (3) 493 State and local but data for other groups include only holdings of those institutions governments, about 40 per cent. that report. The following figures show, for each category, the number "All others," a residual, includes holdings of all those not reporting and proportion reporting as of Sept. 30, 1978: (1) 5,466 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 • December 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 Aug. Sept. Oct. Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 1 U.S. Government securities.. 6,027 10,449 10,838 11,526 9,526 9,814 8,886 9,116 10,324 9,923 9,347 10,244 By maturity: 2 Bills 3,889 6,676 6,746 6,074 5,552 6,286 5,263 5,613 5,612 6,048 6,271 7,182 3 Other within 1 year 223 210 237 386 315 420 265 243 437 467 336 292 4 1-5 years 1,414 2,317 2,318 2,251 1,863 1,520 1,745 1,610 2,425 1,278 1,233 1,234 5 5-10 years 363 1,019 1,148 1,619 802 691 796 732 931 691 640 690 6 Over 10 years 138 229 388 1,196 994 897 818 917 919 1,439 866 846 By type of customer: 7 U.S. Government securities dealers 885 1,360 1,267 942 921 983 912 861 11,,005511 976 11,,113322 965 8 U.S. Government securities brokers 1,750 3,407 3,709 4,988 3,868 4,052 3,741 3,529 4,238 3,939 3,513 4,523 9 Commercial banks 1,451 2,426 2,295 1,908 1,473 1,404 1,420 1,498 1,530 1,504 1,255 1,432 10 All others1 1,941 3,257 3,567 3,688 3,263 3,374 2,814 3,228 3,504 3,503 3,446 3,325 11 Federal agency securities 1,043 1,548 693 2,077 2,172 2,024 2,654 1,830 2,356 1,710 1,715 2,532 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 Aug. Sept. Oct. Aug. 23 Aug. 30 r Sept. 6 Sept. 13 Sept. 20 Sept. 27 Positions2 1111 UUUU....SSSS.... GGGGoooovvvveeeerrrrnnnnmmmmeeeennnntttt sssseeeeccccuuuurrrriiiittttiiiieeeessss.... .... 5,884 7,592 5,172 2,753 2,948 1,428 a,915 2,831 2,931 3,792 3,906 1,490 2222 BBBBiiiillllllllssss 4,297 6,290 4,772 2,330 2,824 1,743 >-2,220 2,362 2,579 3,338 3,853 1,789 3333 OOOOtttthhhheeeerrrr wwwwiiiitttthhhhiiiinnnn 1111 yyyyeeeeaaaarrrr 265 188 99 348 405 462 258 291 236 368 430 445 4444 1111----5555 yyyyeeeeaaaarrrrssss 886 515 60 -64 -320 -593 -555 58 -23 -67 -456 -480 5555 5555----11110000 yyyyeeeeaaaarrrrssss 300 402 92 218 11 -207 89 169 140 177 22 -194 6666 OOOOvvvveeeerrrr 11110000 yyyyeeeeaaaarrrrssss 136 198 149 -78 28 23 -98 -48 -25 58 -70 7777 FFFFeeeeddddeeeerrrraaaallll aaaaggggeeeennnnccccyyyy sssseeeeccccuuuurrrriiiittttiiiieeeessss 943 729 693 656 977 234 r567 996 994 1,093 1,161 800 i Sources of financing3 8888 AAAAllllllll ssssoooouuuurrrrcccceeeessss 6,666 8,715 9,877 11,041 11,558 10,430 11,006 11,176 11,600 12,616 12,814 10,122 CCCCoooommmmmmmmeeeerrrrcccciiiiaaaallll bbbbaaaannnnkkkkssss:::: 9999 NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy 1,621 1,896 1,313 608 997 385 733 611 929 1,293 1,213 626 11110000 OOOOuuuuttttssssiiiiddddeeee NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy............ 1,466 1,660 1,987 2,370 2,344 2,105 2,593 2,288 2,184 2,478 2,904 2,069 11111111 CCCCoooorrrrppppoooorrrraaaattttiiiioooonnnnssss1111 842 1,479 2,358 2,501 2,287 2,396 2,505 2,590 2,499 2,506 2,295 2,096 11112222 AAAAllllllll ooootttthhhheeeerrrrssss 2,738 3,681 4,170 5,563 5,930 5,543 5,175 5,687 5,988 6,338 6,402 5,331 1 All business corporations except commercial banks and insurance firms and dealer departments of commercial banks against U.S. Govt, companies. and Federal agency securities (through both collateral loans and sales 2 New 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 securities held under agreement to resell are excluded where the borrowing been sold under agreements to repurchase. The maturities of some re- contract and the agreement to resell are equal in amount and maturity, purchase agreements are sufficiently long, however, to suggest that the that is, a matched agreement. securities involved are not available for trading purposes. Securities owned, and hence dealer positions, do not include securities purchased NOTE.—Averages for positions are based on number of trading days under agreements 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 AAggeennccyy 11997755 11997766 11997777 Apr. May June July Aug. Sept. 1 Federal and Federally sponsored agencies 97,680 103,325 110,409 115,903 119,728 121,239 123,497 124,478 126,579 2 Federal agencies 19,046 21,896 23,245 23,766 23,864 23,983 24,145 23,686 24,321 3 Defense Department1 1,220 1,113 983 949 935 926 916 906 897 4 Export-Import Bank2-3 7,188 7,801 9,156 9,416 9,416 9,455 9,455 9,455 9,891 5 Federal Housing Administration4 564 575 581 607 608 606 603 603 601 6 Government National Mortgage Association participation certificates5 4,200 4,120 3,743 3,701 3,701 3,701 3,666 3,166 3,166 7 Postal Service6 1,750 2,998 2,431 2,431 2,364 2,364 2,364 2,364 2,364 8 Tennessee Valley Authority 3,915 5,185 6,015 6,310 6,485 6,575 6,785 6,835 7,045 9 United States Railway Association6 209 104 336 352 355 356 356 357 357 10 Federally sponsored agencies 78,634 81,429 87,164 92,137 95,864 97,256 99,352 100,792 102,258 11 Federal home loan banks 18,900 16,811 18,345 20,163 22,217 22,306 23,430 24,360 25,025 12 Federal Home Loan Mortgage Corporation.. 1,550 1,690 1,686 1,639 1,637 1,937 1,937 1,937 2,063 13 Federal National Mortgage Association 29,963 30,565 31,890 34,024 35,297 36,404 36,900 37,518 38,353 14 Federal land banks 15,000 17,127 19,118 19,686 19,686 19,686 20,198 20,198 20,198 15 Federal intermediate credit banks 9,254 10,494 11,174 10,977 11,081 11,257 11,392 11,482 11,555 16 Banks for cooperatives 3,655 4,330 4,434 5,046 5,264 4,974 4,788 4,570 4,317 17 Student Loan Marketing Association7 310 410 515 600 680 690 705 725 745 18 Other. 2 2 2 2 2 2 2 2 2 MEMO ITEMS : 19 Federal Financing Bank debt6-8 1177,,115544 28,711 38,580 4422,,996644 4433,,887711 4444,,550044 45,550 4466,,666688 4488,,007788 Lending to Federal and Federally sponsored agencies: 20 Export-Import Bank3 4,595 5,208 55,,883344 6,094 6,094 6,132 6,132 6,132 6,568 21 Postal Service6 1,500 2,748 2,181 2,181 2,114 2,114 2,114 2,114 2,114 22 Student Loan Marketing Association7 310 410 515 600 680 690 705 725 745 23 Tennessee Valley Authority 1,840 3,110 4,190 4,485 4,660 4,750 4,960 5,010 5,220 24 United States Railway Association6 209 104 336 352 355 356 356 357 357 Other lending:9 25 Farmers Home Administration 7,000 10,750 1166,,009955 19,120 20,090 20,910 21,580 22,275 22,275 26 Rural Electrification Administration 566 1,415 2,647 3,323 3,498 3,602 3,684 3,919 4,192 27 Other 1,134 4,966 6,782 6,809 6,380 5,950 6,019 6,136 6,607 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 • December 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 May Juner July Aug.r Sept.r Oct. 1 All issues, new and refunding 1 30,607 35,313 46,769 r5,515 4,363 3,909 6,392 2,280 3,100 By type of issue: 2 General obligation 16,020 18,040 18,042 2,222 1,986 1,064 2,157 699 1,136 3 Revenue 14,511 17,140 28,655 r3,273 2,369 2,842 4,226 1,574 1,951 4 Housing Assistance Administration 2 5 U.S. Government loans 76 i 33 72 20 8 3 9 7 13 By type of issuer: 6 7,438 7,054 6,354 884 912 650 919 84 546 7 Special district and statutory authority 12,441 15,304 21,717 2,220 1,461 2,168 3,106 1,561 1,565 8 Municipalities, counties, townships, school districts.... 10,660 12,845 18,623 r2,391 1,981 1,088 2,359 627 975 9 29,495 32,108 36,189 r3,152 3,869 3,484 3,345 2,216 3,014 By use of proceeds: 10 Education 4,689 4,900 5,076 664 406 499 277 399 308 11 Transportation 2,208 2,586 2,951 130 359 291 632 298 420 12 7,209 9,594 8,119 557 819 942 686 688 826 13 Social welfare 4,392 6,566 8,274 '966 698 1,235 955 501 1,137 14 Industrial aid 445 483 4,676 371 421 238 338 88 152 15 Other purposes 10,552 7,979 7,093 464 1,166 279 457 242 171 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 Mar. April May June July Aug. 1 All issues 1 53,619 53,488 54,205 4,442 3,285 4,035 5,215 4,226 3,311 2 Bonds. 42,756 42,380 42,193 3,620 2,811 2,996 3,810 3,718 2,529 By type of offering: 3 Public 32,583 26,453 24,186 1,902 1,958 1,719 1,744 2,177 1,497 4 Private placement 10,172 15,927 18,007 1,718 853 1,277 2,066 1,541 1,032 By industry group: 5 Manufacturing 16,980 13,264 12,510 1,155 534 837 1,105 675 485 6 Commercial and miscellaneous 2,750 4,372 5,887 428 421 314 562 417 414 7 Transportation 3,439 4,387 2,033 217 291 244 225 235 115 8 Public utility 9,658 8,297 8,261 631 505 885 815 768 521 9 Communication 3,464 2,787 3,059 291 35 344 326 546 10 Real estate and financial 6,469 9,274 10,438 898 1,027 714 761 1,296 448 11 Stocks 10,863 11,108 12,013 822 474 1,039 1,405 508 782 By type: 12 Preferred 3,458 2,803 3,878 148 235 390 586 57 157 13 Common 7,405 8,305 8,135 674 239 649 819 451 625 By industry group: 14 Manufacturing 1,670 2,237 1,265 15 41 366 167 236 15 Commercial and miscellaneous 1,470 1,183 1,838 183 90 245 167 110 16 Transportation 24 418 28 20 38 40 17 Public utility 6,235 6,121 6,058 627 238 800 429 31 354 18 Communication 1,002 776 1,379 5 27 6 19 Real estate and financial 488 771 1,054 "28 10 88 320 76 75 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 Apr. May June July Aug. Sept. Oct. INVESTMENT COMPANIES excluding money market funds 1 Sales of own shares1 4,226 6,401 625 558 487 474 638 519 463 2 Redemptions of own shares2 6,802 6,027 580 831 757 645 882 673 607 3 -2,496 357 45 -273 -270 -181 -244 -154 -144 4 Assets3 47,537 45,049 46,594 46,969 46,106 47,975 49,299 48,151 43,462 5 Cash position4. 2,747 3,274 4,592 4,642 4,493 4,285 3,948 3,703 3,869 6 Other 44,790 41,775 42,002 42,327 41,613 43,690 45,351 44,448 39,593 1 Includes reinvestment of investment income dividends. Excludes 4 Also includes all U.S. Government securities and other short-term reinvestment of capital gains distributions and share issue of conversions debt 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. 1977 1978 AAccccoouunntt 11997755 11997766 11997777 Ql Q2 Q3 Q4 Ql Q2 Q3P 1 Profits before tax 120.4 155.9 173.9 164.8 175.1 177.5 178.3 172.1 205.5 208.6 2 Profits tax liability 49.8 64.3 71.8 68.3 72.3 72.8 73.9 70.0 85.0 8 6.6 3 Profits after tax 70.6 91.6 102.1 96.5 102.8 104.7 104.4 102.1 120.5 122.0 4 Dividends 31.9 37.9 43.7 41.5 42.7 44.1 46.3 47.0 48.1 50.1 5 Undistributed profits 38.7 53.7 58.4 55.0 60.1 60.6 58.1 55.1 72.4 71.9 6 Capital consumption allowances 89.2 97.1 106.0 102.0 105.0 107.6 109.3 111.3 113.3 115.4 7 Net cash flow 127.9 150.8 164.4 157.0 165.1 168.2 167.4 166.4 185.7 187.3 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 • December 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 Qlr Q2 1 Current assets 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 Inventories 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 Current liabilities 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 1 (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 27.26 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 4.24 4.49 4.74 4.50 4.45 4.81 4.80 5.07 Transportation: 5 Railroad 2.82 3.28 2.71 2.57 3.20 2.80 3.35 3.09 3.64 3.05 6 Air 1.63 2.45 1.62 1.43 1.69 1.76 2.67 2.08 2.97 2.08 7 Other 2.55 2.27 2.96 2.96 1.96 2.32 2.44 2.23 2.37 2.05 Public utilities: 8 Electric 21.57 24.49 21.19 21.14 21.90 22.05 23.15 23.83 25.04 25.94 9 Gas and other 4.21 4.48 4.16 4.16 4.32 4.18 4.78 4.62 4.22 4.28 1 UU 0 C Co o m m m m e u r n c i i c a a l ti a o n n d other1 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 Q3 Q4 Q1 Q2 Q3 ASSETS Accounts receivable, gross 1 Consumer 31.9 35.4 36.1 36.0 38.6 42.3 44.0 44.5 47.1 49.7 2 Business 27.4 32.3 37.2 39.3 44.7 50.6 55.2 57.6 59.5 58.3 3 Total 59.3 67.7 73.3 75.3 83.4 92.9 99.2 102.1 106.6 108.0 4 LESS: Reserves for unearned income and losses 7.4 8.4 9.0 9.4 10.5 11.7 12.7 12.8 14.1 14.3 5 Accounts receivable, net 51.9 59.3 64.2 65.9 72.9 81.2 86.5 89.3 92.6 93.7 6 Cash and bank deposits 2.8 2.6 3.0 2.9 2.6 2.5 2.6 2.2 2.9 2.7 7 Securities .9 .8 .4 1.0 1.1 1.8 .9 1.2 1.3 1.8 8 All other 10.0 10.6 12.0 11.8 12.6 14.2 14.3 15.0 16.2 17.1 9 Total assets 65.6 73.2 79.6 81.6 89.2 99.6 104.3 107.7 112.9 115.3 LIABILITIES 10 Bank loans 5.6 7.2 9.7 8.0 6.3 5.4 5.9 5.8 5.4 5.4 11 Commercial paper 17.3 19.7 20.7 22.2 23.7 25.7 29.6 29.9 31.3 29.3 Debt: 12 Short-term, n.e.c 4.3 4.6 4.9 4.5 5.4 5.4 6.2 5.3 6.6 6.8 13 Long-term, n.e.c 22.7 24.6 26.5 27.6 32.3 34.8 36.0 38.0 40.1 41.3 14 Other 4.8 5.6 5.5 6.8 8.1 13.7 11.5 12.9 13.6 15.2 15 Capital, surplus, and undivided profits 10.9 11.5 12.4 12.5 13.4 14.6 15.1 15.7 16.0 17.3 16 Total liabilities and capital 65.6 73.2 79.6 81.6 89.2 99.6 104.3 107.7 112.9 115.3 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 SSSeeepppttt... 333000,,, 1978 1978 1978 111999777888111 July Aug. Sept. July Aug. Sept. July Aug. Sept. 1 Total 58,324 284 716 -234 14,688 15,417 15,530 14,404 14,701 15,764 2 Retail automotive (commercial vehicles) 13,732 111 247 209 1,073 1,222 1,202 962 975 993 3 Wholesale automotive 1100,,115500 103 -77 -506 66,,114488 66,,331144 66,,111199 66,,004455 66,,339911 66,,662255 4 Retail paper on business, industrial, and farm equipment 15,647 210 295 -154 1,324 1,225 1,198 1,114 930 1,352 5 Loans on commercial accounts receivable... 4,316 -140 -19 150 2,748 3,269 3,454 2,888 3,288 3,304 6 Factored commercial accounts receivable.... 2,472 -11 55 83 1,716 1,481 1,584 1,727 1,426 1,501 7 All other business credit 12,007 11 215 -16 1,679 1,906 1,973 1,668 1,691 1,989 i Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • December 1978 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1978 Item 1975 1976 1977 May June July Aug. Sept. Oct. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms:1 1 44.6 48.4 54.3 59.8 62.6 61.9 63.6 '64.6 66.8 2 Amount of loan (thous. dollars) 33.3 35.9 40.5 44.2 45.9 45.3 46.4 46.7 48.6 3 Loan/price ratio (per cent) 74.7 74.2 76.3 75.5 75.6 75.3 75.3 '74.1 74.4 4 Maturity (years) 26.8 27.2 27.9 27.7 28.3 28.2 28.0 27.8 28.0 5 Fees and charges (per cent of loan amount)2. 1.54 1.44 1.33 1.34 1.40 1.40 1.43 1.36 1.37 6 Contract rate (per cent per annum) 8.75 8.76 8.80 9.14 9.23 9.34 9.45 9.50 9.61 Yield (per cent per annum): 7 FHLBB series3 9.01 8.99 99..0011 9.37 9.46 9.57 9.70 9.73 9.83 8 HUD series4 9.10 8.99 8.95 9.60 9.75 9.80 9.80 9.80 4.95 SECONDARY MARKETS Yields (per cent per annum): 9 FHA mortgages (HUD series) ^ 9.19 8.82 77..9966 9.67 9.92 9.78 9.78 9.93 10 GNMA securities6 8.52 8.17 8.04 8.71 9.05 9.16 8.96 8.95 9.16 FNMA auctions:7 11 Government-underwritten loans 9.26 8.99 8.73 9.66 9.91 10.01 9.81 9.78 10.03 12 9.37 9.11 8.98 9.90 10.10 10.19 10.11 10.02 10.19 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 31,824 32,904 34,370 37,937 38,753 39,409 40,325 41,189 41,957 14 FHA-insured 19,732 18,916 18,457 19,382 19,608 19,763 20,034 20,325 20,625 15 V A-guaranteed 9,573 9,212 9,315 10,255 10,398 10,457 10,535 10,575 10,565 16 Conventional 2,519 4,776 6,597 8,300 8,747 9,189 9,752 10,289 10,767 Mortgage transactions (during period) 17 Purchases 4,263 3,606 497 1,551 1,148 945 1,230 1,132 1,053 18 Sales 2 86 Mortgage commitments:8 19 Contracted (during period) 6,106 6,247 1,333 3,439 1,517 927 527 882 1,900 20 Outstanding (end of period) 4,126 3,398 4,698 10,271 10,395 10,171 9 419 9,068 9,547 Auction of 4-month commitments to buy— Government-underwritten loans: 21 Offered9 7,042.6 4,929.8 1,184.5 2,117.7 1,095.0 756.7 499.1 717.9 1,964.8 22 Accepted 3,848.3 2,787.2 794.0 1,093.7 636.6 471.5 277.2 335.9 832.4 Conventional loans: 23 Offered9 1,401.3 2,595.7 591.6 1,935.8 574.5 316.0 224.7 484.7 1,156.8 24 Accepted 765.0 1,879.2 359.4 968.3 342.0 178.9 128.5 283.7 495.6 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)10 25 Total 4,987 4,269 3,276 2,878 2,255 2,024 2,448 2,486 2,867 26 FHA/VA 1,824 1,618 1,395 1,356 1,338 1,321 1,304 1,287 1,594 27 Conventional 3,163 2,651 1,881 1,522 917 702 1,144 1,199 1,273 Mortgage transactions (during period) 28 Purchases 1,716 1,175 489 479 500 520 742 670 791 29 Sales 1,020 1,396 477 651 1,093 725 299 594 369 Mortgage commitments:11 30 Contracted (during period) 982 1,477 361 811 762 737 838 760 547 31 Outstanding (end of period) 111 333 1,063 1,640 1,870 2,055 2,142 2,130 1,716 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 mortgages carrying the prevailing ceiling rate. Monthly figures are Loan Bank Board in cooperation with the Federal Deposit Insurance unweighted averages of Monday quotations for the month. Corporation. 7 Average gross yields (before deduction of 38 basis points for mortgage 2 Includes all fees, commissions, discounts, and "points" paid (by the servicing) on accepted bids in Federal National Mortgage Association's 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 prepay- prepayment in 12 years for 30-year mortgages. No adjustments are made ment at the end of 10 years. for FNMA commitment fees or stock related requirements. Monthly 4 Average contract rates on new commitments for comentional first figures are unweighted averages for auctions conducted within the month. mortgages, rounded to the nearest 5 basis points; from Dept. of Housing 8 Includes some multifamily and nonprofit hospital loan commitments and Urban Development. in addition to 1- to 4-family loan commitments accepted in FNMA's 5 Average gross yields on 30-year, minimum-downpayment, Federal free market auction system, and through the FNMA-GNMA Tandem Housing Administration-insured first mortgages for immediate delivery plans. in the private secondary market. Any gaps in data are due to periods of 9 Mortgage amounts offered by bidders are total bids received. adjustment to changes in maximum permissible contract rates. 10 Includes participations as well as whole loans. 6 Average net yields to investors on Government National Mortgage 11 Includes conventional and Government-underwritten loans. Association-guaranteed, mortgage-backed, fully-modified pass-through Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate Debt A41 1.54 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1977 1978 Type of holder, and type of property 1973 1974 1975 1976 Q4 Ql Q2 Q3*> 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 416,211 449,371 490,761 556,557 656,116 675,514 701,392 in,me 3 Multifamily 93,132 99,976 100,601 104,516 111,804 114,202 116,793 119,422 4 Commercial 131,725 146,877 159,298 171,223 189,829 194,545 201,054 208,017 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 58,407 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 231,733 249,301 278,590 323,130 381,163 392,479 407,964 420,947 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 • December 1978 1.55 CONSUMER INSTALMENT CREDIT1 Total Outstanding, and Net Change A Millions of dollars 1978 Holder, and type of credit 1975 1976 1977 Apr. May June July Aug. Sept. Oct. Amounts outstanding (end of period) 1 Total 172,353 193,977 230,829 237,855 243,371 249,865 253,897 259,614 263,387 265,576 By major holder: 2 Commercial banks 829,936 93,728 112,373 117,654 120,440 124,080 126,619 129,622 131,403 132,457 3 Finance companies 35,995 38,919 44,868 46,463 47,580 48,637 49,502 50,558 51,280 51,984 4 Credit unions 25,666 31,169 37,605 39,236 40,481 41,936 42,355 43,499 44,325 44,635 5 Retailers 2 18,201 19,260 23,490 21,570 21,744 21,813 21,828 22,093 22,302 22,464 6 Savings and loans 5,162 6,246 7,354 7,694 7,727 7,764 7,793 7,947 8,055 8,177 7 Gasoline companies. .. 2,706 2,830 2,963 3,011 3,069 3,185 3,309 3,354 3,416 3,276 8 Mutual savings banks. 1,687 1,825 2,176 2,227 2,330 2,450 2,491 2,541 2,606 2,583 By major type of credit: 9 Automobile 57,242 67,707 82,911 87,747 90,359 93,261 95,289 97,687 99,062 100,159 10 Commercial banks. . 33,287 39,621 49,577 52,619 54,078 55,754 57,071 58,453 59,085 59,778 11 Indirect paper 19,332 22,072 27,379 29,317 30,169 31,128 31,907 32,667 33,067 33,415 12 Direct loans 13,955 17,549 22,198 23,302 23,909 24,626 25,164 25,786 26,018 26,363 13 Credit unions 12,741 15,238 18,099 18,808 19,357 20,054 20,254 20,801 21,196 21,344 14 Finance companies., 11,214 12,848 15,235 16,320 16,924 17,453 17,964 18,433 18,781 19,037 15 Revolving 15,019 17,189 3399,,227744 3388,,442266 3388,,996677 4400,,000011 4400,,555533 4411,,662299 4422,,442200 4422,,557799 16 Commercial banks. . 12,313 14,359 1188,,337744 1199,,005555 1199,,337788 2200,,113355 2200,,556666 2211,,331144 2211,,993355 2222,,116655 17 Retailers 1177,,993377 1166,,336600 1166,,552200 1166,,668811 1166,,667788 1166,,996611 1177,,006699 1177,,113388 18 Gasoline companies. 2,706 2,830 22,,996633 33,,001111 33,,006699 33,,118855 33,,330099 33,,335544 33,,441166 33,,227766 19 Mobile home 14,434 14,573 15,141 15,287 15,396 15,532 15,663 15,799 15,910 15,925 20 Commercial banks. 8,667 8,737 9,124 9,185 9,275 9,386 9,483 9,539 9,591 9,548 21 Finance companies. 3,445 3,263 3,077 3,057 3,060 3,065 3,085 3,101 3,114 3,127 22 Savings and loans.. 2,050 2,241 2,538 2,626 2,629 2,634 2,644 2,696 2,733 2,775 23 Credit unions 272 332 402 419 432 447 451 463 All 475 24 Other 85,658 94,508 93,503 96,395 98,649 101,071 102,392 104,499 105,995 106,913 25 Commercial banks 28,669 31,011 35,298 36,795 37,709 38,805 39,499 40,316 40,792 40,966 26 Finance companies 21,336 22,808 26,556 27,086 27,596 28,119 28,453 29,024 29,385 29,820 27 Credit unions 12,653 15,599 19,104 20,009 20,692 21,435 21,650 22,235 22,657 22,816 28 Retailers 18,201 19,260 5,553 5,210 5,224 5,132 5,150 5,132 5,233 5,326 29 Savings and loans 3,112 4,005 4,816 5,068 5,098 5,130 5,149 5,251 5,322 5,402 30 Mutual savings banks. 1,687 1,825 2,176 2,227 2,330 2,450 2,491 2,541 2,606 2,583 Net change (during period) 3 31 Total 7,765 21,647 35,278 4,106 4,280 4,207 3,466 3,632 3,680 3,123 By major holder: 32 Commercial banks 2,881 10,792 18,645 2,447 2,260 2,387 2,100 1,785 1,714 1,388 33 Finance companies -82 2,946 5,948 879 861 624 671 736 847 863 34 Credit unions 3,766 5,503 6,436 670 849 797 513 613 639 644 35 Retailers i 87 1,059 2,654 58 135 234 144 342 328 115 36 Savings and loans 829 1,085 1,111 115 67 57 10 107 94 105 37 Gasoline companies 104 124 132 -17 22 20 -19 -1 9 16 38 Mutual savings banks 180 138 352 -46 86 88 47 50 49 -8 By major type of credit: 39 Automobile 2,976 10,465 15,204 1,812 1,877 1,642 1,711 1,604 1,532 1,385 40 Commercial banks 513 6,334 9,956 1,024 1,036 1,029 1,041 957 848 769 41 Indirect paper -392 2,742 5,307 603 646 587 626 515 517 354 42 Direct loans 905 3,592 4,649 421 390 442 415 442 331 415 43 Credit unions 1,872 2,497 2,861 322 377 349 275 287 313 301 44 Finance companies 591 1,634 2,387 466 464 264 395 360 371 315 45 Revolving 1,340 2,170 6,248 683 644 955 600 737 622 346 46 Commercial banks 11,,223366 22,,004466 4,015 587 489 601 498 358 380 337 47 Retailers 2,101 113 133 334 121 380 233 —7 48 Gasoline companies 104 124 132 -17 22 20 -19 -1 9 16 49 Mobile home -208 140 565 112 101 70 83 79 72 25 50 Commercial banks -330 70 387 75 11 50 65 20 31 -25 51 Finance companies -76 -182 -189 2 1 1 11 7 6 -2 52 Savings and loans 161 192 297 29 14 12 2 46 27 46 53 Credit unions 37 60 70 6 8 7 5 6 8 6 54 Other 3,657 8,872 13,261 1,499 1,658 1,540 1,072 1,212 1,454 1,367 55 Commercial banks 1.462 2,342 4,287 761 658 707 496 450 455 301 56 Finance companies -597 1,494 3,750 411 395 359 265 369 470 550 57 Credit unions 1,857 2,946 3,505 342 464 441 233 320 318 331 58 Retailers 87 1,059 553 -55 2 -100 23 -38 95 121 59 Savings and loans 668 893 814 86 53 45 8 61 67 59 60 Mutual savings banks 180 138 352 -46 86 88 47 50 49 -8 1 The Board's series cover most short- and intermediate-term credit NOTE.—Total consumer noninstalment credit outstanding—credit extended to individuals through regular business channels, usually to scheduled to be repaid in a lump sum, including single-payment loans, finance the purchase of consumer goods and services or to refinance charge accounts, and service credit—amounted to $58.2 billion at the end debts incurred for such purposes, and scheduled to be repaid (or with of 1977, $55.0 billion at the end of 1976, $50.8 billion at the end of 1975, the option of repaying in two or more instalments). and $48.4 billion at the end of 1974. Comparable data for Dec. 31, 1978 2 Includes auto dealers and excludes 30-day charge credit held by will be published in the February 1979 BULLETIN. travel and entertainment companies. • Consumer instalment credit series have been revised from 1943, 3 Net change equals extensions minus liquidations (repayments, charge- effective Dec. 7, 1978. Information is available from Mortgage and offs, and other credits); figures for all months are seasonally adjusted. Consumer Finance Section, Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Debt A43 1.56 CONSUMER INSTALMENT CREDIT Extensions and LiquidationsA Millions of dollars 1978 Holder, and type of credit 1975 1976 1977 Apr. May June July Aug. Sept. Extensions2 1 Total 180,441 211,028 254,071 24,682 25,104 25,565 25,022 25,669 25,536 25,855 By major holder: 2 Commercial banks 80,797 97,397 117,896 12,102 12,067 12,382 12,187 12,255 12,123 11,953 3 Finance companies 31,183 36,129 41,989 4,158 4,179 4,223 4,261 4,348 4,372 4,605 4 Credit unions 24,094 29,259 34,028 3,257 3,484 3,445 3,271 3,379 3,360 3,401 5 Retailers i 27 302 29,447 39,133 3,337 3,408 3,552 3,477 3,725 3,718 3,518 6 Savings and loans 3,116 3,898 4,485 421 383 379 327 435 403 892 7 Gasoline companies... 12,497 13,387 14,617 1,311 1,356 1,351 1,299 1,317 1,346 1,335 8 Mutual savings banks., 1,452 1,511 1,923 96 227 233 200 210 215 151 By major type of credit: 9 Automobile 52,420 63,743 75,641 7,434 7,592 7,595 7,652 7,744 7,542 7,511 10 Commercial banks.. 30,095 37,886 46,363 4,511 4,547 4,541 4,639 4,660 4,479 4,355 11 Indirect paper 16,578 20,576 25,149 2,502 2,550 2,505 2,554 2,562 2,519 2,384 12 Direct loans 13,517 17,310 21,214 2,009 1,997 2,036 2,085 2,098 1,960 1,971 13 Credit unions 12,683 14,688 16,616 1,596 1,680 1,667 1,629 1,632 1,641 1,643 14 Finance companies.. 9,642 11,169 12,662 1,327 1,365 1,387 1,384 1,452 1,422 1,513 15 Revolving 36,956 43,934 8866,,775566 88,,552233 88,,556633 99,,006622 88,,770000 99,,002288 99,,000066 88,,884466 16 Commercial banks.. 24,459 30,547 3388,,225566 44,,119977 44,,119911 44,,445511 44,,332200 44,,334466 44,,445577 44,,447755 17 Retailers 3333,,888833 33,,001155 33,,001166 33,,226600 33,,008811 33,,336655 33,,220033 33,,003366 18 Gasoline companies. 12,497 13,387 1144,,661177 11,,331111 11,,335566 11,,335511 11,,229999 11,,331177 11,,334466 11,,333355 19 Mobile home 4,328 4,859 5,425 529 527 510 509 531 494 604 20 Commercial banks. 2,625 3,064 3,466 336 346 327 335 310 297 352 21 Finance companies. 767 702 643 72 69 73 78 75 77 73 22 Savings and loans.. 815 929 1,120 103 92 90 78 127 100 154 23 Credit unions 121 164 196 18 20 20 18 19 20 25 24 Other 86,737 98,492 86,249 8,196 8,422 8,398 8,161 8,366 8,495 8,894 25 Commercial banks 23,618 25,900 29,811 3,058 2,983 3,063 2,893 2,939 2,890 2,771 26 Finance companies 20,774 24,258 28,684 2,759 2,745 2,763 2,799 2,821 2,873 3,019 27 Credit unions 11,290 14,407 17,216 1,643 1,784 1,758 1,624 1,728 1,699 1,733 28 Retailers 27,302 29,447 5,250 322 392 292 396 360 515 482 29 Savings and loans 2,301 2,969 3,365 318 291 289 249 308 303 738 30 Mutual savings banks. 1,452 1,511 1,923 96 227 233 200 210 215 151 Liquidations2 31 Total. 172,676 189,381 218,793 20,576 20,824 21,358 21,556 22,037 21,857 22,732 By major holder: 32 Commercial banks 77,916 86,605 99,251 9,655 9,807 9,995 10,087 10,470 10,409 33 Finance companies 31,265 33,183 36,041 3,279 3,318 3,599 3,590 3,612 3,525 34 Credit unions 20,328 23,756 27,592 2,587 2,635 2,648 2,758 2,766 2,721 35 Retailers i 27,215 28,388 36,479 3,279 3,273 3,318 3,333 3,383 3,390 36 Savings and loans 2,287 2,813 3,374 306 316 322 317 328 309 37 Gasoline companies... 12,393 13,263 14,485 1,328 1,334 1,331 1,318 1,318 1,337 38 Mutual savings banks. 1,272 1,373 1,571 142 141 145 153 160 166 By major type of credit: 39 Automobile 49,444 53,278 60,437 5,622 5,715 5,953 5,941 6,140 6,010 40 Commercial banks.. 29,582 31,552 36,407 3,487 3,511 3,512 3,598 3,703 3,631 41 Indirect paper 16,970 17,834 19,842 1,899 1,904 1,918 1,928 2,047 2,002 42 Direct loans 12,612 13,718 16,565 1,588 1,607 1,594 1,670 1,656 1,629 43 Credit unions 10,811 12,191 13,755 1,274 1,303 1,318 1,354 1,345 1,328 44 Finance companies.. 9,051 9,535 10,275 861 901 1,123 989 1,092 1,051 45 Revolving 35,616 41,764 80,508 7,840 7,919 8,107 8,100 8,291 8,384 46 Commercial banks. . 23,223 28.501 34,241 3,610 3,702 3,850 3,822 3,988 4,077 47 Retailers 31,782 2,902 2,883 2,926 2,960 2,985 2,970 48 Gasoline companies. 12,393 13,263 14,485 1,328 1,334 1,331 1,318 1,318 1,337 49 Mobile home. 4,536 4,719 4,860 417 426 440 426 452 422 50 Commercial banks. 2,955 2,994 3,079 261 269 277 270 290 266 51 Finance companies. 843 884 832 70 67 72 67 68 71 52 Savings and loans.. 654 737 823 74 78 78 76 81 73 53 Credit unions 84 104 126 12 12 13 13 13 12 54 Other 83,080 89,620 72,988 6,697 6,764 6,858 7,089 7,154 7,041 55 Commercial banks 22,156 23,558 25,524 2,297 2,325 2,356 2,397 2,489 2,435 56 Finance companies 21,371 22,764 24,934 2,348 2,350 2,404 2,534 2,452 2,403 57 Credit unions 9,433 11,461 13,711 1,301 1,320 1,317 1,391 1,408 1,381 58 Retailers 27,215 28,388 4,697 377 390 392 373 398 420 59 Savings and loans 1,633 2,076 2,551 232 238 244 241 247 236 60 Mutual savings banks. 1,272 1,373 1,571 142 141 145 153 160 166 1 Includes auto dealers and excludes 30-day charge credit held by A Consumer instalment credit series have been revised from 1943, travel and entertainment companies. effective Dec. 7, 1978. Information is available from Mortgage and Con- 2 Monthly figures are seasonally adjusted. sumer Finance Section, Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic NonfinancialS tatistics • December 1978 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1975 1976 1977 1978 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 1973 1974 1975 1976 1977 HI H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total funds raised 203.8 188.8 208.1 272.5 340.5 177.5 238.9 259.6 285.6 302.2 378.9 371.4 2 196.1 184.9 198.0 261.7 337.4 167.0 229.2 245.9 277.5 301.0 373.8 371.3 By sector and instrument: 3 8.3 11.8 85.4 69.0 56.8 78.3 92.5 73.5 64.5 42.6 71.0 58.8 4 Public debt securities 7.9 12.0 85.8 69.1 57.6 79.1 92.6 73.4 64.9 43.1 72.2 59.7 5 Agency issues and mortgages .4 -.2 -.4 -.1 -.9 -.8 —. 1 . 1 -.3 -.6 -1.2 -.9 6 A11 other nonfinancial sectors 195.5 177.0 122.7 203.5 283.8 99.2 146.4 186.0 221.0 259.6 307.9 312.6 7 Corporate equities 7.7 3.8 10.1 10.8 3.1 10.5 9.7 13.6 8.1 1.2 5.1 .1 X Debt instruments 187.9 173.1 112.6 192.6 280.6 88.7 136.6 172.4 213.0 258.5 302.8 312.5 9 Private domestic nonfinancial sectors. . 189.3 161.6 109.5 182.8 271.4 89.1 130.0 168.5 197.2 252.1 290.7 298.8 10 Corporate equities 7.9 4.1 9.9 10.5 2.7 10.3 9.5 13.3 7.7 .5 4.9 .9 11 Debt instruments 181.4 157.5 99.6 172.3 268.7 78.8 120.5 155.2 189.5 251.6 285.8 297.9 12 Debt capital instruments 105.0 98.0 97.8 126.8 181.1 93.7 101.9 117.8 135.9 163.4 198.9 182.7 13 State and local obligations.... 14.7 16.5 15.6 19.0 29.2 11.1 20.0 19.3 18.7 29.3 29.0 29.0 14 Corporate bonds 9.2 19.7 27.2 22.8 21.0 34.5 19.9 22.2 23.5 16.0 26.0 18.4 Mortgages: 15 Home 46.4 34.8 39.5 63.7 96.4 33.9 45.1 56.9 70.5 88.5 104.2 91.4 16 Multifamily residential 10.4 6.9 * 1.8 7.4 . 1 —. 1 .6 3.1 6.4 8.4 9.7 17 Commercial 18.9 15.1 11.0 13.4 18.4 9.1 12.9 13.8 12.9 14.2 22.6 24.5 18 Farm 5.5 5.0 4.6 6.1 8.8 5.1 4.1 4.9 7.3 8.9 8.7 9.8 19 Other debt instruments 76.4 59.6 1.8 45.5 87.6 -14.9 18.6 37.4 53.6 88.2 86.9 115.2 20 Consumer credit 23.8 10.2 9.4 23.6 35.0 2.2 16.6 22.9 24.3 35.7 34.4 44.8 21 Bank loans n.e.c 39.8 29.0 -14.0 3.5 30.6 -23.7 -4.3 -2.7 9.6 34.0 27.2 47.1 22 Open market paper 2.5 6.6 -2.6 4.0 2.9 -1.9 -3.2 5.6 2.4 3.5 2.4 5.2 23 Other 10.3 13.7 9.0 14.4 19.0 8.5 9.5 11.6 17.3 15.0 23.0 18.1 24 By borrowing sector 189.3 161.6 109.5 182.8 271.4 89.1 130.0 168.5 197.2 252.1 290.7 298.8 25 State and local governments 13.2 15.5 13.2 18.5 25.9 8.8 17.5 17.6 19.5 22.7 29.0 22.1 26 Households 80.9 49.2 48.6 89.9 139.6 37.1 60.2 82.7 97.1 131.2 148.0 147.7 27 Farm 9.7 7.9 8.7 11.0 14.7 8.5 9.0 9.9 12.1 15.5 13.8 15.8 28 Nonfarm noncorporate 12.8 7.4 2.0 5.2 12.6 -1.0 5.1 4.0 6.4 12.8 12.3 20.7 29 Corporate 72.7 81.8 37.0 58.2 78.7 35.8 38.2 54.3 62.2 69.8 87.6 92.5 30 Foreign 6.2 15.3 13.2 20.7 12.3 10.0 16.4 17.5 23.8 7.5 17.2 13.8 31 Corporate equities -.2 -.2 .2 .3 .4 . 1 .2 .3 .3 .6 .2 -.8 32 Debt instruments 6.4 15.6 13.0 20.4 11.9 9.9 16.2 17.2 23.5 6.9 17.0 14.6 33 Bonds 1.0 2.1 6.2 8.5 5.0 5.7 6.8 7.4 9.7 4.4 5.6 4.9 34 Bank loans n.e.c 2.8 4.7 3.7 6.6 1.6 1.6 5.9 5.4 7.9 -3.2 6.4 2.9 35 Open market paper .9 7.3 .3 1.9 2.4 -.8 1.4 1.5 2.4 2.7 2.2 3.6 36 U.S. Government loans 1.7 1.5 2.8 3.3 3.0 3.4 2.2 2.9 3.6 3.1 2.9 3.2 Financial sectors 37 Total funds raised 57.6 36.4 11.7 29.2 58.8 12.4 10.9 27.9 30.5 61.5 56.2 101.5 By instrument: 38 U.S. Government related 19.9 23.1 13.5 18.6 26.3 14.2 12.9 18.2 19.0 25.0 27.5 40.1 39 Sponsored credit agency securities.... 16.3 16.6 2.3 3.3 7.0 1.6 3.1 4.1 2.6 9.5 4.4 24.1 40 Mortgage pool securities 3.6 5.8 10.3 15.7 20.5 11.5 9.2 14.2 17.2 17.9 23.1 16.0 41 Loans from U.S. Government .7 .9 -.4 -1.2 1.1 .6 * - .7 -2.3 42 Private financial sectors 37.7 13.3 -1.9 10.6 32.6 -1.8 -2.0 9.7 11.5 36.5 28.7 61.4 43 Corporate equities 1.5 .3 .6 1.0 .6 .6 .6 -.2 2.3 .5 .7 1.1 44 Debt instruments 36.2 13.0 -2.5 9.6 32.0 -2.4 -2.6 10.0 9.2 36.0 28.0 60.3 45 Corporate bonds 3.5 2.1 2.9 5.8 10.1 1.9 4.0 6.4 5.2 10.1 10.1 8.5 46 Mortgages -1.2 -1.3 2.3 2.1 3.1 1.4 3.1 1.5 2.7 3.3 2.9 2.4 47 Bank loans n.e.c 8.9 4.6 -3.6 -3.7 * -4.3 -2.9 -2.6 -4.8 -2.3 2.3 .4 48 Open market paper and Rp's 17.8 .9 —. 1 7.3 14.4 5.1 -5.4 6.2 8.5 21.4 7.4 35.0 49 Loans from FHLB's 7.2 6.7 -4.0 -2.0 4.3 -6.5 -1.4 -1.5 -2.5 3.4 5.2 14.1 By sector: 57.6 36.4 11.7 29.2 58.8 12.4 10.9 27.9 30.5 61.5 56.2 101.5 50 Sponsored credit agencies 16.3 17.3 3.2 2.9 5.8 2.7 3.8 4.0 1.8 7.1 4.4 24.1 51 Mortgage pools 3.6 5.8 10.3 15.7 20.5 11.5 9.2 14.2 17.2 17.9 23.1 16.0 52 Private financial sectors 37.7 13.3 -1.9 10.6 32.6 -1.8 -2.0 9.7 11.5 36.5 28.7 61.4 53 Commercial banks 14.1 -5.6 -1.4 7.5 4.8 3.9 -6.7 9.0 6.0 10.0 -A 12.2 54 Bank affiliates 2.2 3.5 .3 -.8 1.3 .9 -.3 -1.3 -.3 1.3 1.2 5.8 55 Savings and loan associations 6.0 6.3 -2.2 * 11.9 -7.2 2.7 .1 -.1 10.6 13.1 19.6 56 Other insurance companies .5 .9 1.0 .9 .9 .9 1.0 .9 .9 .9 1.0 1.0 57 Finance companies 9.4 6.0 .6 6.4 16.9 -2.2 3.4 6.0 6.9 17.4 16.4 18.7 58 REIT's 6.5 .6 -1.4 -2.4 -2.4 -1.5 -1.2 -2.1 -2.7 -2.5 -2.2 -1.2 59 Open-end investment companies -1.2 -.7 -.1 -1.0 -1.0 .8 -1.0 -2.4 .4 -.8 -1.2 -.6 6600 Money market funds 22..44 1.3 * ..22 2.6 .1 --..55 ..55 --..55 ..99 55..99 All sectors 61 Total funds raised, by instrument 261.4 225.1 219.8 301.7 399.4 189.8 249.8 287.5 316.0 363.7 435.0 472.9 62 Investment company shares -1.2 -.7 -.1 -1.0 -1.0 .8 -1.0 -2.4 .4 -.8 -1.2 -.6 63 Other corporate equities 10.4 4.8 10.8 12.9 4.8 10.3 11.3 15.8 9.9 2.5 7.0 1.7 64 Debt instruments 252.3 221.0 209.1 289.8 395.6 178.8 239.5 274.1 305.7 362.0 429.2 471.7 65 U.S. Government securities 28.3 34.3 98.2 88.1 84.3 91.5 104.9 91.9 84.3 70.0 98.6 99.0 66 State and local obligations 14.7 16.5 15.6 19.0 29.2 11.1 20.0 19.3 18.7 29.3 29.0 29.0 67 Corporate and foreign bonds 13.6 23.9 36.4 37.2 36.1 42.1 30.7 36.1 38.4 30.5 41.7 31.8 68 Mortgages 79.9 60.5 57.2 87.1 134.0 49.4 65.0 77.7 96.4 121.2 146.7 137.6 69 Consumer credit 23.8 10.2 9.4 23.6 35.0 2.2 16.6 22.9 24.3 35.7 34.4 44.8 70 Bank loans n.e.c 51.6 38.3 -13.9 6.4 32.2 -26.4 -1.3 1 12.6 28.4 35.9 50.4 71 Open market paper and Rp's 21.2 14.8 -2.4 13.3 19.8 2.4 -7.3 13'.3 13.3 27.6 11.9 43.7 72 Other loans 19.1 22.6 8.7 15.3 25.1 6.5 10.9 12.9 17.7 19.2 31.0 35.4 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. 1975 1976 1977 1978 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997733 11997744 11997755 11997766 11997777 HI H2 HI H2 HI H2 HI 1 Total funds advanced in credit markets to nonfinancial sectors 196.1 184.9 198.0 261.7 337.4 167.0 229.2 245.9 277.5 301.0 373.8 371.3 By public agencies and foreign: 2 Total net advances 34.1 52.6 44.3 54.5 85.4 51.9 36.7 49.7 59.3 69.3 101.6 102.9 3 U.S. Government securities 9.5 11.9 22.5 26.8 40.2 31.2 13.7 24.4 29.3 21.2 53.2 42.6 4 Residential mortgages 8.2 14.7 16.2 12.8 20.4 16.8 15.7 11.8 13.7 20.0 20.9 22.9 5 FHLB advances to S&L's 7.2 6.7 -4.0 -2.0 4.3 -6.5 -1.4 -1.5 -2.5 3.4 5.2 14.1 6 Other loans and securities 9.2 19.4 9.5 16.9 20.5 10.4 8.7 15.0 18.8 18.6 22.4 23.4 Totals advanced, by sector 7 U.S. Government 2.8 9.7 15.1 8.9 11.8 15.8 14.3 6.3 11.5 6.1 17.6 19.2 8 Sponsored credit agencies 21.4 25.6 14.5 20.6 26.9 16.0 13.1 20.0 21.2 26.7 27.2 44.3 9 Monetary authorities 9.2 6.2 8.5 9.8 7.1 7.0 10.1 13.7 6.0 10.2 4.1 12.9 10 Foreign .6 11.2 6.1 15.2 39.5 13.0 -.8 9.7 20.6 26.4 52.7 26.5 11 Agency borrowing not included in line 1.. 19.9 23.1 13.5 18.6 26.3 14.2 12.9 18.2 19.0 25.0 27.5 40.1 Private domestic funds advanced 182.0 155.3 167.3 225.7 278.2 129.3 205.4 214.4 237.1 256.8 299.7 308.5 13 U.S. Government securities 18.8 22.4 75.7 61.3 44.1 60.2 91.2 67.5 55.1 42.8 45.4 56.4 14 State and local obligations 14.7 16.5 15.6 19.0 29.2 11.1 20.0 19.3 18.7 29.3 29.0 29.0 15 Corporate and foreign bonds 10.0 20.9 32.8 30.5 22.3 40.0 25.6 28.6 32.3 17.2 27.3 21.7 16 Residential mortgages 48.4 26.9 23.2 52.7 83.2 17.1 29.2 45.6 59.7 74.9 91.6 78.0 17 Other mortgages and loans 97.2 75.4 16.1 60.4 103.7 -5.7 37.9 51.9 68.9 96.0 111.5 137.4 18 LESS : FHLB advances 7.2 6.7 -4.0 -2.0 4.3 -6.5 -1.4 -1.5 -2.5 3.4 5.2 14.1 Private financial intermediation 19 Credit market funds advanced by private financial institutions 165.4 126.2 119.9 191.2 249.6 101.2 138.7 174.4 207.9 241.1 258.0 279.8 20 Commercial banking 86.5 64.5 27.6 58.0 85.8 14.8 40.5 46.6 69.4 81.1 90.5 115.8 21 Savings institutions 36.9 26.9 52.0 71.4 84.8 49.3 54.6 70.5 72.4 85.3 84.3 11A 22 Insurance and pension funds 23.9 30.0 41.5 51.7 62.0 38.1 44.9 53.2 50.2 60.3 63.7 69.3 23 Other finance 18.0 4.7 -1.1 10.1 16.9 -.9 -1.3 4.2 15.9 14.5 19.4 17.7 24 Sources of funds 165.4 126.2 119.9 191.2 249.6 101.2 138.7 174.4 207.9 241.1 258.0 279.8 25 Private domestic deposits 86.6 69.4 90.6 121.5 136.0 89.9 91.3 108.3 134.6 127.0 145.0 119.4 26 Credit market borrowing 36.2 13.0 -2.5 9.6 32.0 -2.4 -2.6 10.0 9.2 36.0 28.0 60.3 27 Other sources 42.5 43.8 31.9 60.1 81.6 13.7 50.0 56.1 64.1 78.2 85.1 100.1 28 Foreign funds 5.8 16.8 .9 5.1 11.6 -.5 2.4 .1 9.5 .1 22.4 2.1 29 Treasury balances -1.0 -5.1 -1.7 —. 1 4.3 -3.8 .4 2.3 -2.5 -1.8 10.4 -.8 30 Insurance and pension reserves 18.4 26.0 29.6 34.8 48.0 21A 31.7 35.8 33.8 45.5 50.4 55.4 31 Other, net 19.4 6.0 3.1 20.3 17.8 -9.4 15.6 17.2 23.4 33.7 1.9 43.4 Private domestic nonfinancial investors 32 Direct lending in credit markets 52.8 42.2 44.9 44.1 60.6 25.7 64.1 50.0 38.4 51.6 69.6 89.0 33 U.S. Government securities 19.2 17.5 23.0 19.6 24.6 6.0 39.9 25.0 14.1 14.1 35.2 35.8 34 State and local obligations 5.4 9.3 8.3 6.8 9.1 5.8 10.8 7.6 6.0 8.2 10.1 11.6 35 Corporate and foreign bonds 1.3 4.7 8.0 2.1 1.1 10.7 5.3 2.9 1.3 .4 1.8 -2.5 36 Commercial paper 18.3 2.4 -.8 4.1 9.5 -1.8 .2 4.8 3.4 13.0 6.0 28.6 37 Other 8.6 8.2 6.4 11.5 16.2 4.9 7.8 9.7 13.5 15.9 16.5 17.6 90.6 75.7 96.8 128.8 144.3 96.4 97.2 114.3 143.3 132.6 156.0 129.5 39 Time and savings accounts 76.1 66.7 84.8 112.2 120.1 75.6 93.9 99.5 125.0 110.5 129.7 110.9 40 Large negotiable CD's 18.1 18.8 -14.1 -14.4 9.3 -27.8 -.3 -19.8 -9.1 -4.4 22.9 11.5 41 Other at commercial banks 29.6 26.1 39.4 58.1 41.7 40.5 38.2 52.0 64.3 45.3 38.2 44.5 42 At savings institutions 28.5 21.8 59.4 68.5 69.1 62.9 56.0 67.3 69.8 69.6 68.7 54.9 14.4 8.9 12.0 16.6 24.2 20.8 3.3 14.8 18.3 22.1 26.3 18.6 44 Demand deposits 10.5 2.6 5.8 9.3 15.9 14.3 -2.6 8.9 9.-6 16.5 15.3 8.5 3.9 6.3 6.2 7.3 8.3 6.5 5.9 6.0 8.6 5.6 11.0 10.1 46 Total of credit market instruments, deposits and currency 143.4 117.8 141.6 111.9 204.9 122.1 161.3 164.3 181.6 184.2 225.6 218.5 47 Public support rate (in per cent) 17.4 28.5 22.4 20.8 25.3 31.1 16.0 20.2 21.4 23.0 27.2 27.7 48 Private financial intermediation (in per cent) 90.9 81.3 71.7 84.7 89.7 78.3 67.5 81.3 87.7 93.9 86.1 90.7 49 Total foreign funds 6.4 28.0 7.1 20.3 51.1 12.5 1.6 10.4 30.1 27.1 75.1 28.5 MEMO: Corporate equities not included above 50 Total net issues 9.2 4.1 10.7 11.9 3.8 11.1 10.3 13.4 10.4 1.7 5.8 1.1 51 Mutual fund shares -1.2 -.7 -.1 -1.0 -1.0 .8 -1.0 -2.4 .4 -.8 -1.2 -.6 52 Other equities 10.4 4.8 10.8 12.9 4.8 10.3 11.3 15.8 9.9 2.5 7.0 1.7 53 Acquisitions by financial institutions 13.3 5.8 9.7 12.5 6.2 11.5 7.8 13.1 12.0 6.1 6.3 1.6 54 Other net purchases -4.1 -1.6 1.0 -.7 -2.4 -.4 2.5 .3 -1.6 -4.4 -.5 -.5 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 • December 1978 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1978 MMeeaassuurree 11997755 11997766 11997777 Apr. May June July Aug.r Sept. r Oct.r 1 117.8 129.8 137.0 143.2 143.9 144.9 146.1 147.1 147.7 148.5 Market groupings: 2 Products, total 119.3 129.3 137.1 143.0 143.1 144.0 145.0 146.2 146.6 147.3 3 Final, total 118.2 127.2 134.9 140.5 140.5 141.1 142.2 143.3 143.8 144.5 4 Consumer goods 124.0 136.2 143.4 147.5 147.0 147.0 147.7 148.4 148.9 149.8 5 Equipment 110.2 114.6 123.2 130.8 131.6 133.0 134.7 136.3 136.7 137.2 6 Intermediate 123.1 137.2 145.1 152.1 152.6 154.7 155.6 156.4 156.8 157.4 7 Materials 115.5 130.6 136.9 143.7 145.1 146.4 147.9 148.6 149.5 150.5 Industry groupings: 8 Manufacturing 116.3 129.5 113377..11 143.5 144.3 145.5 146.7 147.6 148.5 149.3 Capacity utilization (per cent)1 9 Manufacturing 73.6 80.2 82.4 83.7 83.9 84.3 84.7 85.0 85.2 85.4 10 Industrial materials industries 73.6 80.4 81.9 84.0 84.5 85.1 85.7 85.9 86.2 86.6 11 Construction contracts2 162.3 190.2 253.0 279.0 332.0 249.0 286.0 289.0 300.0 319.0 12 Nonagricultural employment, total3 117.0 120.7 125.0 129.8 130.1 130.7 130.8 130.9 131.0 131.6 13 Goods-producing, total 97.0 100.4 104.2 108.6 108.7 109.3 109.4 109.2 109.3 110.1 14 Manufacturing, total 94.2 97.7 101.0 104.3 104.4 104.5 104.4 104.3 104.3 105.1 15 Manufacturing, production-worker 91.2 95.3 98.6 102.0 102.1 102.0 101.8 101.6 101.6 101.8 16 Service-producing 127.9 131.9 136.4 141.5 141.9 142.5 142.5 142.8 142.9 143.4 17 Personal income, total4 200.4 220.4 244.0 266.4 268.4 270.6 274.3 276.1 278.2 281.6 18 Wages and salary disbursements 188.5 208.2 230.1 253.5 254.6 256.9 259.2 260.0 261.9 265.6 19 Manufacturing 157.3 177.1 198.6 219.5 220.7 222.3 224.9 224.5 226.5 229.5 20 Disnosahle nersnnal incnme 199.6 217.5 239.3 265.5 267.5 21 Retail sales 5 184.6 203.5 224.4 244.8 245.4 246.3 244.9 251.7 253.5 256.9 Prices:6 22 Consumer7 161.2 170.5 '181.5 191.5 193.3 195.3 196.7 197.8 199.3 200.9 23 Producer finished goods8 163.4 170.3 180.6 191.5 193.1 194.5 '196.0 195.3 196.9 199.7 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 Series Q4 Q1 Q2 Q3r Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3r Output (1967 = 100) Capacity (per cent of 1967 output) Utilization rate (per cent) 1 Manufacturing 139.9 139.8 144.4 147.6 168.7 170.3 172.0 173.7 82.9 82.1 84.0 85.0 2 Primary processing 148.2 148.2 154.1 158.1 175.1 176.8 178.5 180.2 84.6 83.8 86.3 87.7 3 Advanced processing 135.6 135.4 139.3 142.0 165.3 166.9 168.5 170.2 82.0 81.1 82.7 83.5 4 Materials 138.9 139.2 145.1 148.7 168.9 170.4 171.7 173.0 82.2 81.7 84.5 85.9 5 Durable goods 137.7 137.9 144.0 150.3 172.8 174.0 175.2 176.3 79.6 79.3 82.2 85.3 6 Basic metal 109.4 110.5 117.5 124.4 145.5 145.8 146.1 146.5 75.2 75.8 80.4 84.9 7 Nondurable goods 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 159.5 163.1 167.7 168.2 188.9 190.8 193.1 195.4 84.5 85.5 86.8 86.1 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 132.3 136.5 139.7 134.6 152.5 153.6 154.8 155.8 86.7 88.9 90.3 86.4 11 Chemical 188.9 194.9 201.4 204.2 223.6 226.6 230.1 233.5 85.4 86.0 87.5 87.5 12 Energy 121.9 119.1 125.5 127.1 145.7 147.2 147.8 148.4 83.7 80.9 84.9 85.6 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 May June July Aug. Sept. Oct. Nov. Household survey data 1111 NNNNoooonnnniiiinnnnssssttttiiiittttuuuuttttiiiioooonnnnaaaallll ppppooooppppuuuullllaaaattttiiiioooonnnn1111 153,449 156,048 158,559 160,713 160,928 161,148 161,348 161,570 161,829 162,033 2222 LLLLaaaabbbboooorrrr ffffoooorrrrcccceeee ((((iiiinnnncccclllluuuuddddiiiinnnngggg AAAArrrrmmmmeeeedddd FFFFoooorrrrcccceeeessss))))1111 94,793 96,917 99,534 102,374 102,671 102,734 '102,672 102,993 103,184 103,764 3333 CCCCiiiivvvviiiilllliiiiaaaannnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee 92,613 94,773 97,401 100,261 100,573 100,618 '100,550 100,870 101,062 101,647 EEEEmmmmppppllllooooyyyymmmmeeeennnntttt:::: 4444 NNNNoooonnnnaaaaggggrrrriiiiccccuuuullllttttuuuurrrraaaallll iiiinnnndddduuuussssttttrrrriiiieeeessss2222 81,403 84,188 87,302 90,877 91,346 91,038 91,221 91,457 '91,811 92,470 5555 AAAAggggrrrriiiiccccuuuullllttttuuuurrrreeee 3,380 3,297 3,244 3,235 3,473 3,387 3,360 3,411 3,380 3,265 UUUUnnnneeeemmmmppppllllooooyyyymmmmeeeennnntttt:::: 6666 NNNNuuuummmmbbbbeeeerrrr 7,830 7,288 6,855 6,149 5,754 6,193 5,968 6,002 5,870 5,912 7777 RRRRaaaatttteeee ((((ppppeeeerrrr cccceeeennnntttt ooooffff cccciiiivvvviiiilllliiiiaaaannnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee)))) 8.5 7.7 7.0 6.1 5.7 6.2 5.9 6.0 5.8 5.8 8888 NNNNooootttt iiiinnnn llllaaaabbbboooorrrr ffffoooorrrrcccceeee 58,655 59,130 59,025 58,340 58,257 58,414 58,577 58,645 58,269 Establishment survey data4 9999 NNNNoooonnnnaaaaggggrrrriiiiccccuuuullllttttuuuurrrraaaallll ppppaaaayyyyrrrroooollllllll eeeemmmmppppllllooooyyyymmmmeeeennnntttt3333 76,945 79,382 82,256 85,618 85,996 86,033 86,149 '86,163 86,567 P87,034 11110000 MMMMaaaannnnuuuuffffaaaaccccttttuuuurrrriiiinnnngggg 18,323 18,997 19,647 20,297 20,316 20,302 20,278 '20,286 20,432 p20,594 11111111 MMMMiiiinnnniiiinnnngggg r752 779 809 869 879 882 887 '887 894 p904 11112222 CCCCoooonnnnttttrrrraaaacccctttt ccccoooonnnnssssttttrrrruuuuccccttttiiiioooonnnn r3,525 3,576 r3,833 4,175 4,278 4,317 4,298 '4,298 4,338 p4,380 11113333 TTTTrrrraaaannnnssssppppoooorrrrttttaaaattttiiiioooonnnn aaaannnndddd ppppuuuubbbblllliiiicccc uuuuttttiiiilllliiiittttiiiieeeessss.... 4,542 4,582 '4,696 4,847 4,881 4,827 4,846 4,855 4,920 *>4,946 11114444 TTTTrrrraaaaddddeeee '17,060 r17,755 '18,492 19,335 19,412 19,469 19,523 '19,546 19,640 P19,705 11115555 FFFFiiiinnnnaaaannnncccceeee 4,165 4,271 4,452 4,637 4,670 4,690 4,707 '4,719 4,737 p4,759 11116666 SSSSeeeerrrrvvvviiiicccceeee 13,892 '14,551 '15,249 15,896 15,963 15,989 16,074 '16,127 16,149 *>16,245 11117777 GGGGoooovvvveeeerrrrnnnnmmmmeeeennnntttt r14,686 r14,871 '15,079 15,562 15,597 15,557 15,536 '15,445 15,457 p15,501 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 • December 1978 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. 1967 1977 1978 Grouping pro- 1977 por- avertion age Sept. Oct. Nov. Apr. May June July Aug.r Sept. Oct.p Nov.* Index (1967 = = 100) MAJOR MARKET 1 Total index. 100.00 137.1 138.5 138.9 139.3 143.2 143.9 144.9 146.1 147.1 147.7 148.5 149.5 2 Products 60.71 137.1 138.8 138.9 139.5 143.0 143.1 144.0 145.0 146.2 146.6 147.3 148.2 3 Final products 47.82 134.9 136.8 136.5 137.0 140.5 140.5 141.1 142.2 143.3 143.8 144.5 145.3 4 Consumer goods 27.68 143.4 144.9 144.9 145.2 147.5 147.0 147.0 147.7 148.4 148.9 149.8 150.6 5 Equipment 20.14 123.2 125.6 125.0 125.8 130.8 131.6 133.0 134.7 136.3 136.7 137.2 137.9 6 Intermediate products. 12.89 145.1 146.5 147.8 148.4 152.1 152.6 154.7 155.6 156.4 156.8 157.4 158.6 7 Materials 39.29 136.9 137.9 138.9 139.0 143.7 145.1 146.4 147.9 148.6 149.5 150.5 151.6 Consumer goods 8 Durable consumer goods 7.89 153.1 155.6 156.8 155.2 161.8 160.2 160.6 160.9 161.5 160.2 162.6 163.3 9 Automotive products 2.83 174.2 177.0 179.4 173.6 184.3 180.0 179.9 182.2 182.1 178.3 186.9 190.3 0 Autos and utility vehicles 2.03 169.2 172.6 176.1 167.6 182.7 175.6 173.4 176.7 175.6 170.0 182.3 186.9 1 Autos 1.90 148.4 151.6 154.3 147.5 159.1 151.6 149.8 152.7 151.1 144.4 155.0 159.9 2 Auto parts and allied goods. .80 186.8 188.1 187.6 188.9 188.2 191.5 193.9 196.1 198.0 199.8 198.6 199.5 13 Home goods 5.06 141.3 143.6 144.2 145.0 149.2 148.9 149.7 148.9 150.0 150.0 149.0 148.1 14 Appliances, A/C, and TV... 1.40 127.3 129.4 128.6 131.4 142.2 138.3 139.0 133.7 133.9 134.4 130.8 112277..66 15 Appliances and TV 1.33 130.5 134.1 131.6 133.0 144.7 140.7 141.0 136.8 135.6 136.9 131.9 16 Carpeting and furniture 1.07 152.2 159.0 160.5 160.0 158.9 163.4 166.0 168.5 167.9 168.8 169.0 17 Miscellaneous home goods. 2.59 144.3 144.9 145.8 146.3 149.0 148.8 148.8 149.1 151.3 150.8 150.7 150.6 18 Nondurable consumer goods 19.79 139.6 140.7 140.1 141.2 141.8 141.7 141.6 142.4 143.1 144.3 114444..77 114455..66 19 Clothing 4.29 125.2 128.3 128.0 126.4 124.9 125.4 124.8 125.1 126.6 128.9 20 Consumer staples 15.50 143.6 144.1 143.5 145.3 146.6 146.2 146.3 147.3 147.8 148.7 149.1 115500..11 21 Consumer foods and tobacco. 8.33 135.5 137.1 135.2 136.7 140.8 139.9 139.0 140.2 140.8 141.4 141.1 22 Nonfood staples 7.17 152.9 152.4 153.4 155.1 153.3 153.4 154.8 155.5 155.9 157.2 158.3 115599..44 23 Consumer chemical products. 2.63 180.5 182.5 183.7 186.9 182.5 182.0 185.5 186.7 188.0 189.1 190.1 24 Consumer paper products 1.92 117.1 116.4 117.6 118.5 117.7 117.9 118.0 117.5 117.3 119.2 121.1 25 Consumer energy products ... 2.62 151.4 148.6 149.1 149.9 149.9 150.7 150.8 151.9 152.0 153.1 115533..66 26 Residential utilities 1.45 159.0 153.8 155.8 155.6 159.0 157.2 159.0 159.9 160.1 161.0 Equipment 27 Business equipment 12.63 149.2 152.1 152.6 153.5 159.3 160.2 161.8 163.8 165.4 166.0 166.9 168.1 28 Industrial equipment 6.77 138.5 141.4 141.8 142.6 147.8 149.7 150.9 151.9 152.8 153.1 153.6 154.3 29 Building and mining equipment. 1.44 202.5 204.5 205.7 206.7 225.1 226.0 227.3 228.9 228.1 226.9 226.4 227.0 30 Manufacturing equipment 3.85 113.9 117.6 118.5 118.7 119.0 121.3 122.8 122.6 123.9 124.7 125.8 126.5 31 Power equipment 1.47 140.2 141.4 139.8 142.1 147.3 149.2 149.2 152.8 154.6 155.1 155.1 155.9 32 Commercial transit, farm equipment. 5.86 161.6 164.4 165.1 165.9 172.6 172.3 174.4 177.5 179.9 180.8 182.0 183.8 33 Commercial equipment 3.26 191.6 193.7 195.4 197.4 203.8 204.2 206.9 210.6 212.2 214.1 214.5 216.5 34 Transit equipment 1.93 117.8 125.1 123.3 118.9 133.7 132.2 132.3 134.9 138.5 138.3 140.9 114411..77 35 Farm equipment .67 142.3 134.9 142.1 147.8 132.9 131.9 137.3 138.5 141.3 142.0 143.0 36 Defense and space equipment... 7.51 79.6 80.9 78.9 79.3 82.9 83.6 84.6 85.9 87.1 87.3 87.3 87.3 Intermediate products 37 Construction supplies 6.42 140.8 143.2 144.9 146.5 148.5 150.4 152.1 153.5 154.7 155.7 156.7 115577..99 38 Business supplies 6.47 149.5 149.7 150.5 150.1 155.6 155.0 157.0 157.6 158.2 158.1 158.1 39 Commercial energy products. 1.14 164.6 162.7 163.0 160.9 163.5 162.7 163.0 164.1 167.4 167.6 167.6 Materials 40 Durable goods materials. .. 20.35 134.5 135.7 137.1 137.2 142.7 143.9 145.4 148.7 150.4 151.8 152.8 154.0 41 Durable consumer parts. 4.58 132.0 135.8 135.4 136.5 136.8 137.9 138.7 142.0 142.2 144.8 145.5 146.6 42 Equipment parts 5.44 143.1 146.8 147.6 147.2 154.8 155.8 157.4 161.7 162.9 164.6 165.5 166.5 43 Durable materials n.e.c.. 10.34 131.1 129.8 132.4 132.3 138.9 140.3 141.8 144.7 147.6 148.3 149.1 115500..44 44 Basic metal materials. 5.57 110.9 106.8 110.0 107.9 116.7 117.5 118.2 121.7 125.4 126.2 126.9 45 Nondurable goods materials 10.47 153.5 153.9 154.4 155.4 162.0 163.5 164.1 162.5 162.7 163.8 164.3 164.7 46 Textile, paper, and chemical materials. 7.62 158.3 159.0 160.0 159.3 166.4 167.9 168.8 168.3 167.0 169.2 169.5 116699..66 47 Textile materials 1.85 113.0 114.5 118.5 117.8 116.5 116.7 118.0 117.1 116.0 117.4 118.2 48 Paper materials 1.62 133.5 135.2 134.4 132.2 139.2 140.1 139.9 135.1 131.5 137.3 137.6 49 Chemical materials 4.15 188.2 188.2 188.5 188.6 199.5 201.7 202.9 204.0 203.7 204.9 204.8 50 Containers, nondurable. . .. 1.70 150.9 151.2 148.9 156.7 160.5 161.9 162.8 155.4 161.8 161.5 162.2 51 Nondurable materials n.e.c.. 1.14 125.3 124.1 125.4 128.5 134.6 135.8 135.0 135.7 134.8 131.6 132.7 52 Energy materials 8.48 122.4 123.5 124.0 123.0 123.9 125.2 127.5 127.9 127.0 126.3 128.3 112299..44 53 Primary energy 4.65 107.3 110.0 112.2 111.6 115.5 114.4 116.1 116.7 115.4 112.2 115.9 54 Converted fuel materials. . . 3.82 140.7 140.0 138.4 136.9 134.1 138.6 141.4 141.6 141.3 143.5 143.7 Supplementary groups 55 Home goods and clothing. 9.35 133.9 136.5 136.8 136.5 138.0 138.2 138.3 138.0 139.2 140.3 139.7 139.6 56 Energy, total 12.23 132.5 132.5 133.0 132.3 133.1 134.2 135.9 136.4 136.1 135.9 137.4 113388..55 57 Products 3.76 155.4 153.0 153.3 153.2 154.1 154.3 154.6 155.6 156.7 157.5 157.8 58 Materials 8.48 122.4 123.5 124.0 123.0 123.9 125.2 127.5 127.9 127.0 126.3 128.3 129 A 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 Sept. Oct. Nov. Apr. May June July Aug.r Sept. Oct.f Nov.e Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities., 12.05 136.2 135.1 135.8 135.5 140.9 140.9 142.5 142.6 142.5 141.8 2 Mining 6.36 117.8 118.0 119.6 118.8 127.2 126.7 128.0 127 126.0 124.3 3 Utilities 5.69 156.5 154.1 154.0 154.2 156.0 157.0 158.6 159.9 160.8 161.2 4 Electric 3.88 175.5 173.7 173.6 173.3 175.0 177.1 180.1 182. 183.2 183.3 5 Manufacturing. 87.95 137.1 139.0 139.4 139.9 143.5 144.3 145.5 146.7 147.6 148.5 6 Nondurable.. 35.97 148.1 149.5 149.6 150.1 153.2 154.0 154.9 155.0 155.6 156.6 7 Durable 51.98 129.5 131.7 132.4 132.7 136.9 137.6 139.0 141 142.2 142.9 Mining 8 Metal mining .51 105.4 71.4 80.0 84.8 122.3 120.0 121. 117.0 117.9 116.0 9 Coal .69 118.0 133.0 141.4 140.6 129.5 131.7 136.4 131.7 124.9 114.7 10 Oil and gas extraction 4.40 118.0 119.6 119.4 117.8 127.3 126.3 127.1 126.8 126.2 125.3 11 Stone and earth minerals. .75 124.9 126.7 128.1 127.2 128.9 130.1 130.7 131.3 131.6 133.0 Nondurable manufactures 12 Foods 8.75 137.9 138.3 137.3 139.4 143.1 142.8 141.8 142.9 144.0 144.2 13 Tobacco products .67 114.3 113.5 113.8 117.5 121.0 120.2 122.7 120.8 118.6 120.6 14 Textile mill products... 2.68 137. 140.7 142.4 141.6 138.1 138.5 140.4 141.0 139.5 142.0 15 Apparel products 3.31 124.2 127.7 129.0 125. 126.1 125.8 126.8 124.5 127.2 130.7 16 Paper and products 3.21 137.4 139.1 137.9 137.8 145.7 146.6 148.0 140.5 141.9 142.7 17 Printing and publishing 4.72 124.9 124.2 125.7 126.2 128.6 128.2 128.7 130.3 129.5 131.0 18 Chemicals and products... 7.74 180.7 181.3 182.3 183 185.5 188.1 191.1 192.3 192.2 192.8 19 Petroleum products 1.79 141.0 141.9 141.4 140.5 141.7 143.4 142.8 144.3 144.1 145.4 20 Rubber & plastic products. 2.24 232.2 239.5 236.3 238.5 249.1 252.7 255.5 259.1 261.1 263.3 21 Leather and products .86 75.3 74.0 77.0 78.1 76.0 75.7 75.1 74.5 74.0 73.1 Durable manufactures 22 Ordnance, private & government. 19,91 3.64 73.9 75.1 74.4 74.1 73.0 74.3 74.7 75.2 75.2 74.4 23 Lumber and products 24 1.64 133.4 137.1 135.7 137.5 136.9 136.5 138.7 138.1 136.9 139.2 24 Furniture and fixtures 25 1.37 140.9 145.6 146.6 146.0 148.9 152.8 156.2 158.1 159.0 160.3 25 Clay, glass, stone products 32 2.74 146. 145.5 148.0 152.8 156.7 157.9 159.8 158.8 159.5 160.9 26 Primary metals 33 6.57 110.2 109.0 113.5 111.2 114.3 115.5 117.5 123.0 126.0 127.8 27 Iron and steel 331, 2 4.21 103.4 104.6 107.7 104.3 109.0 110.5 114.5 119.0 120.9 123.0 28 Fabricated metal products. 34 5.93 130.9 133.6 133.8 135.8 139.5 140.4 142.3 144.0 145.8 146.3 29 Nonelectrical machinery... 35 9.15 144.8 147.4 148.9 149.7 152.2 152.9 154.6 156 157.3 158.7 30 Electrical machinery 36 8.05 141.9 144.6 144.2 146.0 152.3 152.9 154.1 157.9 156.9 158.3 31 Transportation equipment 37 9.27 121.1 125.5 124.3 122.0 130.5 130 130.4 132.1 133.4 132.9 32 Motor vehicles & parts 371 4.50 159.7 165.6 168.4 163.0 171.7 168.3 167.7 169.7 171.0 168.9 33 Aerospace & misc. trans, eq. 372-9 4.77 84.7 87.7 82.8 83.3 91.8 93.9 95.0 96.5 98.3 98.9 34 Instruments 38 2.11 159.1 160.3 162.2 163. 170.5 169.8 170.9 172.2 175.4 174.6 35 Miscellaneous mfrs 39 1.51 149.1 150.7 151.0 151.8 152.9 152.7 153.5 153. 153.8 154.1 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total , 1507.4 583.9 590.1 591.3 591.3 608.8 606.8 608 9 610.3 613.3 616.5 622.0 37 Final products 1390.9 452.1 456.8 457.8 457.3 470.7 468.2 468.9 469.6 472.2 475.3 480.3 38 Consumer goods. 1211.5 317.5 319.1 319.5 320.0 326.3 324.0 323.0 323.4 324.7 326.6 329.6 39 Equipment U13.4 134.6 137.6 138.1 137.3 144.4 144.2 146.0 146.4 147.5 148.9 150.7 40 Intermediate products. U16.6 131.9 133.5 133.8 134.1 138.3 138.6 140.3 140.7 141.4 141.5 141.9 1 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 • December 1978 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1978 Item 1975 1976 1977 Apr. May June July Aug.1 Sept.1 Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 927 1,296 18,133 1,740 1,597 1,821 1,632 1,563 1,731 2 1-family 669 894 12,265 1,157 1,058 1.123 1,035 1,020 1,092 3 2-or-more-family 278 402 5,861 583 539 698 597 543 639 4 Started 1,160 1,538 1,986 2,165 2,054 2.124 2,119 2,025 2,081 5 1-family 892 1,163 1,451 1,492 1,478 1,441 1,453 1,440 1,462 6 2-or-more-family 268 377 535 673 576 683 666 585 619 7 Under construction, end of period 1 1,003 1,147 1,442 1,274 1,282 1,296 1,299 1,300 1,315 8 1-family 531 655 829 774 770 774 780 786 788 9 2-or-more-family 472 492 613 500 513 522 519 514 527 10 Completed 1,297 1,362 1,652 1,943 1,854 1,890 1,942 1,970 1,929 11 1-family 866 1,026 1,254 1,515 1,426 1,344 1,286 1,367 1,405 12 2-or-more-family 430 336 398 428 428 546 656 603 524 13 Mobile homes shipped 213 246 252 258 263 283 272 Merchant builder activity in 1-family units: 14 Number sold 544 639 819 827 846 831 794 784 792 15 Number for sale, end of period *.. 383 433 407 410 412 418 418 418 419 Price (thous. of dollars)2 Median: 16 Units sold 39.3 44.2 48.9 53.3 55.7 56.7 54.9 56.3 57.6 17 Units for sale 38.9 41.6 48.2 Average: 18 Units sold 42.5 48.1 54.4 59.3 62.3 63.2 63.0 63.0 64.9 EXISTING UNITS (1-family) 19 Number sold 2,452 3,002 3,572 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 48.2 47.8 48.4 49.4 50.3 50.2 21 Average 39.0 42.2 47.9 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. 134,293 147,481 170,685 195,261 201,555 205,843 208,300 206,403 207,733 23 Private 93,624 109,499 133,652 153,728 156,456 160,594 159,912 157,987 159,410 24 Residential 46,472 60,519 81,067 92,433 94,533 94,902 93,998 92,455 92,527 25 Nonresidential, total 47,152 48,980 52,585 61,295 61,923 65,692 65,914 65,532 66,883 Buildings: 26 Industrial 8,017 7,182 7,182 9,244 8,735 11,335 11,170 12,043 12,634 27 Commercial 12,804 12,757 14,604 17,177 18,546 19,246 19,463 18,835 18,926 28 Other 5,585 6,155 6,226 6,806 6,935 6,761 7,036 6,721 6,686 29 Public utilities and other. 20,746 22,886 24,573 28,068 27,707 28,350 28,245 27,933 28,637 30 Public 40,669 37,982 37,033 41,532 45,099 45,249 48,388 48,415 48,323 31 Military.. 1,392 1,508 1,478 1,500 1,446 1,358 1,493 887 940 32 Highway. 10,861 9,756 9,170 8,491 10,556 10,338 10,015 33 Conservati 3,256 3,722 3,765 4,586 4,172 3,508 4,947 34 Other 3... 25,160 22,996 22,620 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 Oct. 1977 1978 1978 Oct. Oct. (1967 Dec. Mar. June Sept. June July Aug. Sept. Oct. = 100)2 Consumer prices3 1 All items . 6.5 8.9 4.9 9.3 11.4 7.8 .9 .5 .6 .8 .8 200.9 2 Commodities 5.7 8.4 4.9 9.3 11.2 6.3 .9 .4 .4 .7 .7 191.8 3 Food 7.0 11.5 4.2 16.4 20.4 3.0 1.3 .0 .3 .5 .8 216.8 4 Commodities less food 4.9 7.0 5.4 6.1 7.2 7.8 .6 .6 .5 .9 .7 179.1 5 Durable 4.6 8.4 5.2 8.7 9.0 8.3 .8 .7 .5 .9 .8 178.8 6 Nondurable 5.1 5.3 5.1 3.1 5.5 7.3 .4 .5 .5 .8 .5 178.1 7 Services 7.8 9.6 4.9 9.1 11.8 10.3 .9 .8 .8 .8 .8 217.6 8 Rent 6.3 7.2 6.3 6.2 8.5 7.5 .6 .5 .5 .8 .6 167.4 9 Services less rent 8.1 9.9 4.8 9.6 12.2 10.8 .9 .9 .9 .9 .8 226.7 Other groupings: 10 All items less food 6.3 8.3 5.0 8.1 9.3 9.1 .7 .7 .7 .8 .8 119966..77 11 All items less food and energy 6.4 8.4 5.3 8.0 9.9 8.3 .9 .7 .6 .7 .8 194.0 12 Homeownership 7.8 12.9 7.1 12.2 14.5 14.7 1.2 1.2 1.0 1.3 1.2 237.0 Producer prices, formerly Wholesale prices 13 Finished goods 6.8 8.6 7.2 9.6 11.4 5.0 .7 .5 r— .2 .9 .9 199.7 14 Consumer 6.7 9.0 5.4 10.9 12.5 4.2 .8 r. 5 -.3 .9 1.0 197.8 15 Foods 7.3 11.9 7.4 21.2 14.6 -1.0 1.2 r—. 5 r—1.4 1.7 1.7 212.5 16 Excluding foods 6.4 7.5 4.7 5.3 11.2 7.6 .5 '1.0 r. 3 .5 .6 188.6 17 Capital Equiptment 7.1 7.5 10.9 7.1 8.7 7.4 .7 .6 .4 .6 .6 204.1 18 Materials 5.2 10.2 8.3 13.9 9.0 5.2 .7 r.2 .1 .9 1.6 225.8 19 Intermediate! 6.8 7.4 4.2 9.2 6.6 6.7 .6 r.4 r.6 .6 1.1 221.5 Crude: 20 Nonfood 3.7 17.1 20.1 16.2 11.6 12.2 1.6 2.4 -.5 1.0 2.1 298.2 21 Food .2 22.8 27.6 40.3 28.1 -9.4 1.9 -2.5 -1.8 1.9 3.6 224.4 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 • December 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 1916 1977 Account Q2 Q3 Q4 QL Ql Q3 Gross national product 1 1,528.8 1,700.1 1,887.2 1,867.0 1,916.8 1,958.1 1 ,992.0 2,087.5 2,141.4 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 1,357.7 3 Durable goods 132.6 156.6 178.4 175.6 111.A 187.2 183.5 197.8 199.4 4 Nondurable goods 408.9 442.6 479.0 473.6 479.7 496.9 501.4 519.3 532.0 5 Services 437.5 491.0 549.2 539.4 557.5 571.1 591.8 605.8 626.3 6 Gross private domestic investment 190.9 243.0 297.8 295.6 309.7 313.5 322.7 345.4 350.6 7 Fixed investment 201.6 131.8 181.3 278.6 181.8 300.5 306.0 325.3 336.8 8 Nonresidential 150.2 164.6 190.4 187.2 193.5 200.3 205.6 220.1 227.9 9 Structures 53.8 51.3 63.9 63.4 65.4 67.4 68.5 76.6 81.3 10 Producers' durable equipment 96.4 107.3 126.5 123.8 128.1 132.8 137.1 143.5 146.6 11 Residential structures 51.5 68.2 91.9 91.4 94.3 100.2 100.3 105.3 108.9 12 Nonfarm 49.5 65.8 88.9 88.4 91.2 97.5 97.3 102.1 105.7 13 Change in business inventories -10.7 10.2 15.6 17.0 21.9 13.1 16.7 20.1 13.8 14 Nonfarm -14.3 12.2 15.0 16.5 22.0 10.4 16.9 22.1 14.8 15 Net exports of goods and services 20.4 7.4 -11.1 -5.9 — 7.0 -23.2 -24.1 -5.5 -6.6 16 Exports 147.3 163.2 175.5 178.1 180.8 112.1 181.7 205.4 213.8 17 Imports 126.9 155.7 186.6 184.0 187.8 195.2 205.8 210.9 220.3 18 Government purchases of goods and services. . 338.4 359.5 394.0 388.8 399.5 412.5 416.7 424.7 439.6 19 Federal 123.1 129.9 145.1 142.9 146.8 152.2 151.5 147.2 154.0 20 State and local 215.4 229.6 248.9 245.9 252.7 260.3 265.2 277.6 285.6 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 2,127.6 22 Goods 686.6 760.3 832.6 825.8 844.7 859.6 861.8 912.2 928.5 23 Durable 259.0 304.6 341.3 339.1 346.5 347.4 351.2 375.8 380.6 24 Nondurable All.5 455.7 491.3 486.7 498.2 512.2 510.6 536.4 547.9 25 Services 697.6 778.0 862.8 850.0 875.3 893.6 926.4 952.0 977.4 26 Structures 144.7 161.9 191.8 191.3 196.8 204.9 203.8 223.4 235.5 27 Change in business inventories -10.7 10.2 15.6 17.0 21.9 13.1 16.7 20.1 13.8 28 Durable goods -8.9 5.3 8.4 9.1 11.9 6.3 14.8 10.8 9.9 29 Nondurable goods -1.8 4.9 7.2 7.9 10.0 6.8 1.9 9.3 3.9 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 1,394.2 National income 31 1,215.0 1,359,2 1,515.3 1,499.3 1,537.6 1,576.9 1 ,603.1 1,688.1 1,731.0 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 1,316.9 33 Wages and salaries 805.9 890.1 983.6 973.4 993.6 1,021.2 1 ,050.8 1,090.2 1,113.2 34 Government and Government enterprises.. 175.4 187.6 200.8 198.1 201.7 208.1 211.4 213.9 216.8 35 Other 630.4 702.5 782.9 775.3 791.9 813.1 839.3 876.3 896.4 36 Supplement to wages and salaries 125.2 146.7 169.8 167.1 172.2 178.4 190.2 197.6 203.7 37 Employer contributions for social insurance 60.1 69.1 79.4 18.6 19.9 82.4 90.2 93.6 95.8 38 Other labor income 65.1 77.0 90.4 88.5 92.2 96.1 100.0 104.0 107.9 39 Proprietors' income1 87.0 88.6 99.8 98.9 97.2 107.3 105.0 110.1 114.5 40 Business and professional1 63.5 70.2 19.5 78.9 80.8 82.3 83.1 86.1 89.5 41 Farm1 13.5 18.4 20.3 20.0 16.5 25.1 21.9 24.0 25.0 42 Rental income of persons2 11.A 22.5 22.5 22.4 22.4 22.7 22.8 22.2 24.3 43 Corporate profits1 95.9 127.0 144.2 143.7 154.8 148.2 132.6 163.4 168.4 44 Profits before tax 3 120.4 155.9 173.9 175.1 177.5 178.3 172.1 205.5 208.6 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 18.6 84.3 95.4 93.7 97.3 99.0 101.7 104.6 107.1 1 With inventory valuation and capital consumption adjustments. 3 For after-tax profits, dividends, etc., see Table 1.50. 2 With capital consumption adjustments. SOURCE.—Survey of Current Business (U.S. Dept. of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Income Accounts A53 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1977 1978 11997755 11997766 11997777 Account Q2 Q3 Q4 Ql Q2 Q3 Personal income and saving 1,255.5 1 380.9 1,529.0 1,508.6 1,543.7 1,593.0 1,628.9 1,682.4 1,730.6 2 Wage and salary disbursements 805.9 890.1 983.6 973.4 993.6 1,021.2 1,050.8 1,090.2 1,113.0 3 Commodity-producing industries 275.0 307.5 343.7 342.0 348.3 357.1 365.9 387.0 396.5 4 Manufacturing 211.0 237.5 266.3 264.1 269.3 277.3 286.9 296.1 302.1 5 Distributive industries 195.3 216.4 239.1 236.5 241.2 247.5 257.0 266.4 271.4 6 Service industries 160.1 178.6 200.1 196.8 202.3 208.5 216.5 222.8 224.5 7 Government and government enterprises 175.4 187.6 200.8 198.1 201.7 208.1 211.4 213.9 216.6 8 Other labor income 65.1 77.0 90.4 88.5 92.2 96.1 100.0 104.0 107.9 87.0 88.6 99.8 98.9 97.2 107.3 105.0 110.1 114.5 10 Business and professional1 63.5 70.2 79.5 78.9 80.8 82.3 83.1 86.1 89.5 11 Farm1 23.5 18.4 20.3 20.0 16.5 25.1 21.9 24.0 25.0 12 Rental income of persons2 22.4 22.5 22.5 22.4 22.4 22.7 22.8 22.2 24.3 13 Dividends 31.9 37.9 43.7 42.7 44.1 46.3 47.0 48.1 50.1 14 Personal interest income 115.5 126.3 141.2 139.1 143.6 146.0 151.4 156.3 160.8 15 Transfer payments 178.2 193.9 208.8 204.0 211.9 215.9 219.2 220.6 230.6 16 Old-age survivors, disability, and health insurance benefits 81.4 92.9 105.0 101.8 108.5 110.1 112.1 113.7 121.1 17 LESS: Personal contributions for social insurance 50.5 55.5 61.0 60.5 61.4 62.6 67.2 69.2 70.5 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 1,730.6 19 LESS: Personal tax and nontax payments.... 168.8 196.5 226.0 223.3 224.6 233.3 237.3 249.1 263.1 20 EQUALS: Disposable personal income 11,,008866..77 11,,118844..44 1,303.0 111,,,222888555...333 111,,,333111999...111 111,,,333555999...666 1,391.6 111,,,444333333...333 111,,,444666777...555 21 LESS: Personal outlays 11,,000033..00 11,,111166..33 11,,223366..11 111,,,222111777...888 111,,,222444444...888 111,,,222888555...999 11,,330099..22 111,,,333555777...000 111,,,333999333...444 22 EQUALS: Personal saving 83.6 68.0 6666..99 666777...555 777444...333 777333...777 8822..44 777666...333 777444...111 MEMO ITEMS : Per capita (1972 dollars): 23 Gross national product 5,629 55555,,,,,999990000066666 6,144 6666,,,,111122220000 6,191 66666,,,,,222222222266666 66666,,,,,222221111155555 66666,,,,,333333333333333 6666,,,,333377772222 24 Personal consumption expenditures 3333,,,,666622226666 33333,,,,,888880000088888 333,,,999555444 3333,,,,999922222222 3,953 44444,,,,,000003333300000 44444,,,,,000000000099999 44444,,,,,000006666600000 4444,,,,000099993333 25 Disposable personal income 4444,,,,000022225555 44444,,,,,111113333366666 444,,,222777111 4444,,,,222244441111 444,,,222999333 44444,,,,,333336666655555 44444,,,,,333337777700000 44444,,,,,333339999999999 4444,,,,444422225555 26 Saving rate (per cent) 7777....7777 55555.....77777 555...111 5555....3333 555...666 55555.....44444 55555.....99999 55555.....33333 5555....1111 Gross saving 27 Gross private saving 259.8 270.7 290.8 288.6 310.7 304.3 305.4 319.9 326.5 28 Personal saving 83.6 68.0 66.9 67.5 74.3 73.7 82.4 76.3 74.1 29 Undistributed corporate profits1 14.2 24.8 28.7 28.7 38.0 28.0 15.6 30.3 31.7 30 Corporate inventory valuation adjustment.... -12.4 -14.5 -14.8 -16.6 -7.7 -14.8 -23.5 -24.9 -20.9 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 -64.4 -33.2 -18.6 -11.8 -25.2 -29.6 -21.1 6.2 1.1 35 Federal -70.6 -53.8 -48.1 -40.3 -56.4 -58.6 -52.6 -23.6 -22.6 36 State and local 6.2 20.7 29.6 28.5 31.2 29.0 31.5 29.8 23.7 37 Capital grants received by the United States, net 38 Investment 202.8 241.7 276.9 280.4 292.6 279.5 286.4 326.6 330.6 39 Gross private domestic 190.9 243.0 297.8 295.6 309.7 313.5 322.7 345.4 350.6 40 Net foreign 11.9 -1.2 -20.9 -15.2 -17.1 -34.1 -36.3 -18.9 -20.0 41 Statistical discrepancy 7.4 4.2 4.7 3.7 7.1 4.8 2.2 .5 3.0 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 • December 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 Q1 Q2 1 Merchandise exports 107,088 114,694 120,555 30,630 31,012 29,434 30,664 35,067 2 Merchandise imports 98,041 124,047 151,658 37,258 38,265 39,639 41,865 42,869 3 Merchandise trade balance2 9,047 -9,353 -31,103 -6,628 -7,253 -10,205 -11,201 -7,802 4 Military transactions, net -876 312 1,334 295 467 5 210 575 5 Investment income, net 3 12,795 15,933 17,507 4,487 4,609 3,813 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 -10,558 -1,434 -1,594 -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 18,445 4,339 -15,265 -2,677 -2,871 -6,969 -6,858 -3,261 --22,,550000 --55,,118822 --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 13 Change in U.S. official reserve assets (increase, —) --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 17 Foreign currencies -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, -j-)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 34 Long-term 406 -958 -620 -176 18 -242 38 -19 35 Short-term -87 451 877 -236 572 667 457 29 36 Foreign private purchases of U.S. Treasury securities, net 22,,559900 22,,778833 563 -1,370 1,251 -299 881 803 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 55,,444499 99,,330000 -954 616 -4,766 1,604 3,798 7,998 41 Owini? to seasonal adjustments --117788 --22,,223300 22,,227766 116600 1122 42 Statistical discrepancy in recorded data before seasonal adjustment 5,449 9,300 -954 794 -2,536 -672 3,638 7,986 MEMO ITEMS: Changes in official assets: 43 U.S. official reserve assets (increase, —) -607 -2,530 -231 6 151 246 329 44 Foreign official assets in the United States (increase, +).. 5,259 13,080 35,480 7,467 7,914 15,153 1144,,995566 --44,,661144 45 Changes in Organization of Petroleum Exporting Countries (OPEC) official assets in the Unites States (part of line 25 above) 7,092 99,,558811 66,,773333 1,344 11,,443388 1,024 11,,996633 --22,,773377 46 Transfers under military grant programs (excluded from lines 1, 4, and 9 above). 2,207 373 194 53 31 71 75 57 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 Government interest payments from imports. Census basis primarily because the IA basis includes imports into the 3 Primarily associated with military sales contracts and other transac- U.S. Virgin Islands, and it excludes military exports, which are part of tions arranged with or through foreign official agencies. Line 4. 6 Consists of investments in U.S. corporate stocks and in debt securi- 3 Includes reinvested earnings of incorporated affiliates. ties of private corporations and state and local governments. 4 Differs from the definition of "net exports of goods and services" in the national income and product (GNP) account. The GNP definition NOTE.—Data are from Bureau of Economic Analysis, Survey of Current Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Trade and Reserve Assets A55 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1978 IItteemm 11997755 11997766 11997777 Apr. May June July Aug. Sept. Oct. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 107,589 115,156 121,151 11,635 11,754 12,126 11,793 12,469 1133,,442299 1133,,001111 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded 96,573 121,009 147,685 14,496 13,992 13,723 14,779 14,090 1155,,112200 1155,,113388 3 Trade balance 11,016 -5,853 -26,534 -2,861 -2,238 -1,597 -2,987 -1,621 -1,691 -2,127 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 May June July Aug. Sept. Oct. Nov.* 1 Total 16,226 18,747 19,312 18,966 18,864 18,832 18,783 18,850 18,935 3 17,967 2 Gold stock, including Exchange 11,599 11,598 11,719 11,718 11,706 11,693 11,679 11,668 11,655 11,642 2,335 2,395 2,629 2,760 2,804 2,860 2,885 2,942 3,097 31,522 4 Reserve position in International Monetary Fund 2,212 4,434 4,946 4,347 4,270 4,177 4,196 4,214 4,147 31,099 5 Convertible foreign currencies 80 320 18 141 84 102 23 26 36 4 3,704 1 Gold held under earmark at F.R. Banks for foreign and international 3 Beginning July 1974, the IMF adopted a technique for valuing the accounts is not included in the gold stock of the United States -* see Table SDR based on a weighted average of exchange rates for the currencies 3.24. of 16 member countries. The U.S. SDR holdings and reserve position in 2 Incites allocations by the International Monetary Fund (IMF) of the IMF also are valued on this basis beginning July 1974. SDR's as follows: $867 million on Jan. 1, 1970; $717 "million on Jan. 1, 4 Beginning November 1978, valued at current market exchange rates. 1971; and $710 million on Jan. 1, 1972; plus net transactions in SDR's. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • December 1978 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1978 Asset account 1975 1976 1977 Mar. Apr. May2 June July Aug. All foreign countries 1 Total, all currencies 176,493 219,420 258,897 263,468 260,558 r259,442 r271,696 '269,542 275,065 287,368 2 Claims on United States 6,743 7,889 11,623 11,013 13,754 8,727 r10,891 9,254 10,348 14,975 3 Parent bank 3,665 4,323 7,806 6,708 9,348 4.863 6,750 5,096 6,142 10,724 4 Other 3,078 3,566 3,817 4,305 4,406 3.864 r4,141 4,158 4,206 4,251 5 Claims on foreigners 163,391 204,486 238,848 243,316 237,447 r241,774 r251,783 r250,700 254,585 262,063 6 Other branches of parent bank 34,508 45,955 55,772 55,554 51,817 r52,713 r55,357 '55,236 58,746 63,493 7 Banks 69,206 83,765 91,883 95,348 92,370 91,912 r96,638 '94,659 92,854 95,192 8 Public borrowers1 5,792 10,613 14,634 15,284 15,207 21,139 22,495 '23,401 23,311 23,852 9 Nonbank foreigners 53,886 64,153 76,560 77,130 78,053 "76,010 '77,293 '77,404 79,674 79,526 10 Other assets 6,359 7,045 8,425 9,139 9,357 8,941 9,022 9,588 10,132 10,330 11 Total payable in U.S. dollars 132,901 167,695 193,764 194,855 194,168 192,466 202,792 198,205 200,915 211,962 12 Claims on United States 6,408 7,595 11,049 10,320 12,952 8,035 r10,107 8,473 9,349 14,167 13 Parent bank 3,628 4,264 7,692 6,611 9,158 4,712 6,580 4,906 5,758 10,554 14 Other 2,780 3,332 3,357 3,709 3,795 3,323 '3,527 3,567 3,591 3,613 15 Claims on foreigners 123,496 156,896 178,896 180,341 176,877 180,331 r188,590 185,425 187,038 193,357 16 Other branches of parent bank 28,478 37,909 44,256 43,502 40,628 41,209 43,544 43,447 46,326 50,880 17 Banks 55,319 66,331 70,786 71,934 70,504 70,124 r74,842 '71,592 69,594 71,762 18 Public borrowers1 4,864 9,022 12,632 13,276 13,232 18,275 19,515 '20,416 20,221 20,474 19 Nonbank foreigners 34,835 43,634 51,222 51,628 52,513 50,723 50,689 '49,970 50,897 50,241 20 Other assets 2,997 3,204 3,820 4,195 4,339 4,100 4,095 4,307 4,528 4,438 United Kingdom 21 Total, all currencies 74,883 81,466 90,933 90,162 87,100 89,645 93,538 92,989 93,341 99,084 22 Claims on United States 2,392 3,354 4,341 3,075 2,506 2,333 3,142 2,615 2,820 2,940 23 Parent bank 1,449 2,376 3,518 2,274 1,548 1,476 2,279 1,515 1,791 2,045 24 Other 943 978 823 802 958 857 863 1,100 1,029 895 25 Claims on foreigners 70,331 75,859 84.016 84,648 81,871 84,700 87,808 87,479 87,575 93,364 26 Other branches of parent bank 17,557 19,753 22.017 21,092 19,514 19,550 19,944 20,438 21,661 24,691 27 Banks 35,904 38,089 39,899 41,612 40,436 40,807 43,044 42,462 40,401 42,677 28 Public borrowers1 881 1,274 2,206 2,192 2,020 4,150 4,400 4,750 4,532 4,505 29 Nonbank foreigners 15,990 16,743 19,895 19,753 19,901 20,193 20,420 19,829 20,981 21,491 30 Other assets 2,159 2,253 2,576 2,439 2,724 2,612 2,588 2,895 2,946 2,780 31 Total payable in U.S. dollars 57,361 61,587 66,635 64,565 62,330 63,565 67,016 65,452 64,457 69,908 32 Claims on United States 2,273 3,275 4,100 2,850 2,312 2,163 2,870 2,321 2,337 2,598 33 Parent bank 1,445 2,374 3,431 2,236 1,520 1,452 2,178 1,386 1,483 1,914 34 Other 828 902 669 614 793 711 692 935 854 684 35 Claims on foreigners 54,121 57,488 61,408 60,610 58,845 60,277 63,043 61,938 60,907 66,142 36 Other branches of parent bank 15,645 17,249 18,947 17,603 16,531 16,406 17,025 17,438 18,305 20,934 37 Banks 28,224 28,983 28,530 28,947 28,177 28,324 30,686 29,455 27,310 29,759 38 Public borrowers1 648 846 1,669 1,710 1,631 3,254 3,366 3,785 3,502 3,440 39 Nonbank foreigners 9,604 10,410 12,263 12,349 12,507 12,293 11,966 11,260 11,790 12,009 40 Other assets 967 824 1,126 1,104 1,173 1,125 1,103 1,193 1,213 1,168 Bahamas and Caymans 41 Total, all currencies 45,203 66,774 79,052 82,947 84,409 82,083 84,692 82,145 85,654 88,754 42 Claims on United States 3,229 3,508 5,782 6,761 9,908 5,237 r6,441 5,132 5,620 10,052 43 Parent bank 1,477 1,141 3,051 3,585 6,710 2,502 3,449 2,381 2,751 7,090 44 Other 1,752 2,367 2,731 3,176 3,198 2,735 >"2,992 2,751 2,869 2,962 45 Claims on foreigners 41,040 62,048 71,671 74,397 72,720 74,846 r76,282 74,988 77,949 76,651 46 Other branches of parent bank 5,411 8,144 11,120 11,367 9,565 10,580 10,803 10,292 12,134 12,348 47 Banks 16,298 25,354 27,939 29,602 28,712 29,045 '30,307 '29,302 29,749 29,472 48 Public borrowers1 3,576 7,105 9,109 9,438 9,362 11,424 12,394 '12,599 12,461 12,362 49 Nonbank foreigners 15,756 21,445 23,503 23,990 25,082 23,797 22,118 '22,795 23,605 22,469 50 Other assets 933 1,217 1,599 1,789 1,781 2,000 1,969 2,025 2,085 2,051 51 Total payable in U.S. dollars 41,887 62,705 73,987 77,521 79,324 76,660 79,277 76,494 79,701 83,006 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 Mar. Apr. May2 June July Aug. Sept.f All foreign countries 52 Total, all currencies . 176,493 219,420 258,897 263,468 260,558 '259,442 '271,696 '269,542 275,065 287,368 53 To United States 20,221 32,719 44,154 50,860 49,088 49,907 '50,534 ' 51,450 52,565 49,148 54 Parent bank 12,165 19,773 24,542 27,650 26,643 28,422 25,199 '27,722 29,051 24,583 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 23,209 22,445 1 f 1 9 2 , , 0 4 0 8 3 2 ' ' 1 10 4 , , 3 9 7 6 1 4 1 8 5 , , 6 1 0 2 8 0 1 7 5 , , 6 85 5 5 9 1 1 4 0 , , 5 0 3 2 7 8 57 To foreigners 149,815 179,954 206,579 204,629 202,946 '202,232 r213,670 '209,943 213,978 228,907 58 Other branches of parent bank. . 34,111 44,370 53,244 52,090 48,850 50,368 53,547 '53,788 56,955 61,599 59 Banks 72,259 83,880 94,140 90,557 91,699 87,567 '93,413 '88,364 89,237 97,587 60 Official institutions 22,773 25,829 28,110 28,018 28,568 29,776 '31,414 '31,831 31,452 33,119 61 Nonbank foreigners . 20,672 25,877 31,085 33,963 33,830 '34,521 '35,296 '35,960 36,334 36,602 62 Other liabilities 6,456 6,747 8,163 7,980 8,524 '7,303 '7,492 '8,149 8,522 9,313 63 Total payable in U.S. dollars . 135,907 173,071 198,572 199,879 197,575 196,746 207,117 202,407 205,074 215,495 64 To United States 19,503 31,932 42,881 49,248 47,811 48,278 '48,820 '49,535 50,457 46,996 65 Parent bank 11,939 19,559 24,213 27,321 26,348 27,787 24,477 '26,951 28,159 23,633 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 21,927 21,463 i t 1 8 1 , ,7 7 8 0 7 4 ' '1 1 4 0 , , 2 0 6 7 5 8 1 8 4 , , 2 2 8 9 6 8 1 7 5 , , 2 0 8 1 6 2 1 9 3 , , 6 6 9 7 0 3 68 To foreigners 112,879 137,612 151,363 146,406 145,350 144,758 ' 154,513 '148,763 150,474 163,798 69 Other branches of parent bank. . 28,217 37,098 43,268 41,636 39,214 40,099 42,682 '42,852 45,620 49,978 70 Banks 51,583 60,619 64,872 60,353 61,665 57,871 '62,434 '56,273 55,288 63,229 71 Official institutions 19,982 22,BIB 23,972 23,593 23,865 25,124 '26,587 '26,843 26,175 27,398 72 Nonbank foreigners . 13,097 17,017 19,251 20,824 20,606 21,664 '22,810 22,795 23,391 23,193 73 Other liabilities 3,526 3,527 4,328 4,224 4,414 3,710 3,784 4,109 4,143 4,701 United Kingdom 74 Total, all currencies. 74,883 81,466 90,933 90,162 87,100 89,645 93,538 92,989 93,341 99,084 75 To United States. 5,646 5,997 7,753 7,609 7,266 6,758 8,174 r8,011 6,978 7,991 76 Parent bank... 2,122 1,198 1,451 1,646 1,983 1,636 1,822 '1,959 1,905 1,872 7 7 7 8 Nonbanks. • } 3,523 4,798 6,302 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 3 3 , , 0 1 1 0 1 8 79 To foreigners . 67,240 73,228 80,736 80,036 77,169 80,108 82,703 ' 81,847 82,991 87,720 80 Other branches of parent bank 6,494 7,092 9,376 8,674 8,014 9,009 9,700 '10,098 11,708 12,006 81 Banks 32,964 36,259 37,893 36,250 34,940 35,980 '36,856 '34,662 35,293 37,677 82 Official institutions 16,553 17,273 18,318 19,262 18,817 19,087 '20,074 '20,863 19,863 21,535 83 Nonbank foreigners.... 11,229 12,605 15,149 15,850 15,399 16,032 '16,073 16,224 16,127 16,502 84 Other liabilities 1,997 2,241 2,445 2,518 2,665 2,779 2,661 3,131 3,372 3,373 85 Total payable in U.S. dollars. 57,820 63,174 67,573 65,477 62,662 64,025 67,936 65,671 64,926 70,227 86 To United States. 5,415 5,849 7,480 7,250 6,938 6,446 7,852 r7,652 6,606 7,610 87 Parent bank... 2,083 1,182 1,416 1,598 1,953 1,609 1,794 '1,926 1,852 1,805 8 8 8 9 Nonbanks. • | 3,332 4,667 6,064 5,652 4,985 X ( 2 2 , , 5 2 5 8 6 1 2 3 , , 8 1 8 7 2 6 2 2 , ,8 9 2 0 2 4 2 2, , 5 2 4 0 5 9 2 3 , , 7 0 5 5 3 2 90 To foreigners 51,447 56,372 58,977 57,045 54,498 56,274 58,856 '56,636 57,015 61,271 91 Other branches of parent ban! 5,442 5,874 7,505 6,747 6,202 6,696 7,259 '7,696 9,163 9,317 92 Banks 23,330 25,527 25,608 23,075 22,115 22,554 '23,472 '20,527 20,601 22,936 93 Official institutions 14,498 15,423 15,482 16,213 15,672 15,908 '16,866 '17,397 16,113 17,699 94 Nonbank foreigners 8,176 9,547 10,382 11,009 10,509 11,116 11,259 11,016 11,138 11,319 95 Other liabilities. 959 953 1,116 1,182 1,227 1,305 1,228 1,383 1,305 1,346 Bahamas and Caymans 96 Total, all currencies 45,203 66,774 79,052 82,947 84,409 82,083 84,692 82,145 85,654 88,754 97 To United States 11,147 22,721 32,176 38,380 37,256 37,350 '35,185 36,908 39,532 34,243 98 Parent bank 7,628 16,161 20,956 23,854 22,289 23,255 19,078 21,755 23,187 18,403 1 9 0 9 0 N O o th n e b r a b n a k n s ks in United States. ' } 3,520 6,560 11,220 14,526 14,967 I ( 8 5 , ,6 4 2 7 5 0 '1 ' 0 5 , , 5 5 9 1 3 4 1 4 0 , , 5 5 8 6 7 6 1 4 1 , , 5 8 0 3 9 6 1 5 0 , , 5 3 1 2 7 3 101 To foreigners 32,949 42,899 45,292 43,153 45,610 43,394 '48,088 43,782 44,597 52,706 102 Other branches of parent bank.. 10,569 13,801 12,816 10,839 10,288 11,250 11,657 11,165 11,436 14,762 103 Banks 16,825 21,760 24,717 23,374 25,847 21,452 '25,752 21,951 21,884 27,371 104 Official institutions 3,308 3,573 3,000 3,060 3,489 4,419 4,583 4,221 4,598 4,468 105 Nonbank foreigners 2,248 3,765 4,759 5,880 5,986 6,273 '6,096 6,445 6,679 6,105 106 Other liabilities 1,106 1,154 1,584 1,414 1,543 1,339 1,419 1,455 1,525 1,805 107 Total payable in U.S. dollars 42,197 63,417 74,463 78,467 80,243 78,254 80,650 78,131 81,314 84,316 1 In May 1978 a broader category of claims on foreign public borrowers, 2 In May 1978 the exemption level for branches required to report including corporations that are majority owned by foreign governments, was increased, which reduced the number of reporting branches. replaced the previous, more narrowly defined claims on foreign official institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • December 1978 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1978 IItteemm 11997755 11997766 11997777 A • p rr. Mayr Juner July Aug. Sept.? Oct.* A. By type 1111 TTTToooottttaaaallll iiii 82,572 95,634 131,090 142,822 140,955 140,571 144,138 146,084 145,148 152,861 2222 LLLLiiiiaaaabbbbiiiilllliiiittttiiiieeeessss rrrreeeeppppoooorrrrtttteeeedddd bbbbyyyy bbbbaaaannnnkkkkssss iiiinnnn tttthhhheeee UUUUnnnniiiitttteeeedddd SSSSttttaaaatttteeeessss2222 16,262 17,231 18,003 19,569 19,054 18,808 19,445 20,049 19,690 22,711 3333 UUUU....SSSS.... TTTTrrrreeeeaaaassssuuuurrrryyyy bbbbiiiillllllllssss aaaannnndddd cccceeeerrrrttttiiiiffffiiiiccccaaaatttteeeessss 3333 34,199 37,725 47,820 57,649 56,447 55,594 56,842 56,299 55,014 57,967 UUUU....SSSS.... TTTTrrrreeeeaaaassssuuuurrrryyyy bbbboooonnnnddddssss aaaannnndddd nnnnooootttteeeessss:::: 4444 MMMMaaaarrrrkkkkeeeettttaaaabbbblllleeee 6,671 11,788 r32,157 32,880 32,314 32,836 34,149 34,860 35,564 36,140 5555 NNNNoooonnnnmmmmaaaarrrrkkkkeeeettttaaaabbbblllleeee4444 19,976 20,648 20,443 19,444 19,355 19,284 19,214 20,375 20,304 21,426 6666 UUUU....SSSS.... sssseeeeccccuuuurrrriiiittttiiiieeeessss ooootttthhhheeeerrrr tttthhhhaaaannnn UUUU....SSSS.... TTTTrrrreeeeaaaassssuuuurrrryyyy sssseeeeccccuuuurrrriiiittttiiiieeeessss5555 5,464 8,242 12,667 13,280 13,785 14,049 14,488 14,501 14,576 14,617 B. By area 7777 TTTToooottttaaaallll 82,572 95,634 131,090 142,822 140,955 140,571 144,138 146,084 145,148 152,861 8888 WWWWeeeesssstttteeeerrrrnnnn EEEEuuuurrrrooooppppeeee1111 45,701 45,882 70,748 73,761 72,777 74,455 75,739 79,723 80,205 85,300 9999 CCCCaaaannnnaaaaddddaaaa 3,132 3,406 2,334 2,477 2,680 2,593 2,490 2,071 1,497 2,619 11110000 LLLLaaaattttiiiinnnn AAAAmmmmeeeerrrriiiiccccaaaa aaaannnndddd CCCCaaaarrrriiiibbbbbbbbeeeeaaaannnn 4,461 4,926 4,649 5,567 5,425 4,668 4,629 4,621 3,898 4,619 11111111 AAAAssssiiiiaaaa 24,411 37,767 50,693 58,050 57,219 56,199 58,081 56,848 56,808 57,407 11112222 AAAAffffrrrriiiiccccaaaa 2,983 1,893 1,742 1,872 1,945 1,689 2,220 2,036 2,006 2,184 11113333 OOOOtttthhhheeeerrrr ccccoooouuuunnnnttttrrrriiiieeeessss6666 1,884 1,760 924 1,095 909 967 979 785 734 732 1 Includes the Bank for International Settlements. 5 Debt securities of U.S. Govt, corporations and Federally sponsored 2 Principally demand deposits, time deposits, bankers acceptances, agencies, and U.S. corporate stocks and bonds. commercial paper, negotiable time certificates of deposit, and borrowings 6 Includes countries in Oceania and Eastern Europe. under repurchase agreements. 3 Includes nonmarketable certificates of indebtedness (including those NOTE.—Based on Treasury Dept. data and on data reported to the payable in foreign currencies through 1974) and Treasury bills issued to Treasury Dept. by banks (including Federal Reserve Banks) and securities official institutions of foreign countries. dealers in the United States. 4 Excludes notes issued to foreign official nonreserve agencies. Includes • For a description of the changes in the International Statistics bonds and notes payable in foreign currencies. tables, see July 1978 BULLETIN, p. 612. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A59 3.15 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period Item 1975 1976 1977 Apr.Ar Mayr Juner July Aug. Sept.? Oct.? A. By holder and type of liability 1 All foreigners 95,590 110,657 126,168 141,884 137,133 135,926 137,293 140,532 143,938 2 Banks' own liabilities.. 65,342 61,315 60,671 61.429 63,931 68,403 3 Demand deposits.... 13,564 16,803 18,996 17,951 17,823 17,189 17,953 16,104 17,203 4 Time deposits1 10,267 11,347 11,521 11,660 11,542 11,635 11,921 12,634 12,495 5 Other2 7.232 7,156 6,477 6,876 7,238 6,939 6 Own foreign offices3. 28,500 24,795 25,369 24,679 27,955 31,767 7 Banks' custody liabilities4 76,542 75,818 75,255 ••75,864 76,601 75,535 8 U.S. Treasury bills and certificates5 37,414 40,744 48,906 59,140 58,260 57,126 57,629 57,264 56,665 9 Other negotiable and readily transferable instruments6 14,806 14,958 15,506 r15,512 16,691 15,994 10 Other 2,597 2,600 2,623 2,722 2,646 2,876 11 Nonmonetary international and regional organizations7 5,699 5,714 3,274 3,069 3,129 2,942 2,678 2,823 3,406 12 Banks' own liabilities. 785 501 480 1,017 808 767 13 Demand deposits... 139 290 231 267 286 265 257 142 144 14 Time deposits1 148 205 139 103 61 119 116 97 99 15 Other2 416 154 97 644 569 523 16 Banks' custody liabilities4 2,283 2,627 2,462 1,662 2,014 2,639 17 U.S. Treasury bills and certificates 2,554 2,701 706 892 1,153 922 228 368 1,036 18 Other negotiable and readily transferable 19 Other instruments6 1,391 1,473 1,537 3 1,432 1 1,645 1,603 20 Official institutions8. 50,461 54,956 65,822 77,217 75,501 74,402 76,286 76,348 74,703 21 Banks' own liabilities. 9,601 9.017 8,453 9,422 9,085 9,462 22 Demand deposits... 2,644 3,394 3,528 3,701 3.092 2,611 3,473 2,643 3,307 23 Time deposits1 3,423 2,321 1,797 1.901 1,982 1,981 2,277 2,595 2,563 24 Other2 3; 999 3,943 3,862 3,673 3,848 3,592 25 Banks' custody liabilities4 67.616 66,483 65,949 66.864 67,263 65,241 26 U.S. Treasury bills and certificates5 34,199 37,725 47,820 57,649 56,447 55,594 56,842 56,299 55,014 27 Other negotiable and readily transferable instruments6 9,479 9,453 9,857 9,498 10,326 9,636 28 Other 489 583 498 524 638 592 29 Banks9. 29,330 37,174 42,335 46,762 43,338 43,363 r42,921 45,532 50,321 30 Banks' own liabilities 42,495 38,960 38,824 38,358 41,028 45.542 31 Unaffiliated foreign banks. 13,995 14.165 13,454 13,680 13,073 13,775 32 Demand deposits 7,534 9,104 10,933 10.220 10,338 10,164 10,240 9,229 9,711 33 Time deposits1 1,873 2,297 2,040 1.375 1,325 1,255 1,321 1,390 1,606 34 Other2 2,399 2,502 2,035 2,119 2,454 2,458 35 Own foreign offices3 28,500 24,795 25,369 24,679 27,955 31,767 36 Banks' custody liabilities4 4,267 4,378 4,540 r4,562 4,504 4,779 37 U.S. Treasury bills and certificates 335 119 141 314 363 300 269 296 307 38 Other negotiable and readily transferable instruments6 2,182 2,251 2,355 r2,416 2.381 2,538 39 Other 1,771 1,764 1,885 1,877 1,828 1,934 40 Other foreigners. 10,100 12,814 14,736 14,837 15.166 15,218 15,407 15,829 15,507 41 Banks' own liabilities. 12,460 12.836 12,914 12,631 13,009 12,632 42 Demand deposits... 3,248 4,015 4,304 3,762 4,106 4,149 3,983 4,090 4,041 43 Time deposits1 4,823 6,524 7,546 8,280 8,173 8,281 8,208 8,552 8,226 44 Other2 418 557 484 441 368 365 45 Banks' custody liabilities4 2.376 2,330 2,304 2,776 2,819 2,875 46 U.S. Treasury bills and certificates 325 198 240 286 297 310 290 301 308 47 Other negotiable and readily transferable instruments6 1.754 1,780 1,757 2,165 2,339 2,218 48 Other 336 253 237 320 179 349 49 MEMO: Negotiable time certificates of deposit held in custody for foreigners 9,255 9,290 9,428 9,385 9,964 9,793 1 Excludes nejgotiable time certificates of deposit, which are included 6 Principally bankers acceptances, commercial paper, and negotiable in "Other negotiable and readily transferable instruments." time certificates of deposit. 2 Includes borrowings under repurchase agreements. 7 Principally the International Bank for Reconstruction and Develop- 3 U.S. banks: includes amounts due to own foreign branches and ment, and the Inter-American and Asian Development Banks. foreign subsidiaries consolidated in "Consolidated Report of Condition" 8 Foreign central banks and foreign central governments and the filed with bank regulatory agencies. Agencies, branches, and majority- Bank for International Settlements. owned subsidiaries of foreign banks: principally amounts due to head 9 Excludes central banks, which are included in "Official institutions." office or parent foreign bank, and foreign branches, agencies or whollyowned subsidiaries of head office or parent foreign bank. NOTE.—Data for time deposits prior to April 1978 represent short- 4 Financial claims on residents of the United States, other than long- term only. term securities, held by or through reporting banks. A For a description of the changes in the International Statistics 5 Includes nonmarketable certificates of indebtedness (including those Tables, see July 1978 BULLETIN, p. 612. payable in foreign currencies through 1974) and Treasury bills issued to official institutions of foreign countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • December 1978 3.15 Continued 1978 Item 1975 1976 1977 Apr.Ar May June July Aug. Sept.*> Oct.? B. By area and country 1 Total 95,590 110,657 126,168 141,884 '137,133 '135,926 '137,293 140,532 143,938 150,871 2 Foreign countries. 89,891 104,943 122,893 138,816 134,005 132,983 134,615 137,709 140,532 3 Europe 44,072 47,076 60,295 63,214 '62,984 64,302 '64,662 67,339 69,009 4 Austria 759 346 318 324 '352 '351 372 424 431 Belgium-Luxembourg 2,893 2,187 2,531 3,019 2,893 2,756 2,277 2,174 2,368 Denmark 329 356 770 1,063 1,110 1,335 1,542 1,593 1,673 Finland 391 416 323 433 '396 352 407 416 415 France 7,726 4.876 5,269 5,521 '6,276 '6,550 7,353 7,989 8,060 Germany 4,543 6,241 7,239 11,023 9,537 10,029 9,727 10,766 11,205 Greece 284 403 603 588 563 597 646 826 865 Italy 1,059 3,182 6,857 6,013 '6,364 '6,869 '7,036 8,055 7,394 Netherlands 3,407 3,003 2,869 3,015 2,993 3,118 3,078 3,240 2,756 Norway 994 782 944 1,465 1,643 1,869 1,737 1.516 1,208 Portugal 193 239 273 164 288 191 227 324 521 Spain 423 559 619 659 717 688 709 752 762 Sweden 2,277 1,692 2,712 3,177 3,302 3,385 3,340 3,355 3,341 Switzerland 8,476 9,460 12,343 13,121 12,534 12,415 11,888 12,102 13,157 Turkey 118 166 130 249 200 110 147 137 226 United Kingdom 6,867 10,018 14,125 11,029 11,609 11,471 11,770 10,956 11,796 Yugoslavia 126 189 232 192 168 229 192 149 167 Other Western Europe1 2,970 2,673 1,804 1,909 '1,731 '1,666 1,935 2,311 2,337 U.S.S.R 40 51 98 62 96 66 55 46 65 Other Eastern Europe2 197 236 236 186 211 255 222 210 262 24 Canada. 2,979 4,659 4,607 5,922 6,600 5,816 5,623 5,890 5,122 25 Latin America and Caribbean 15,028 19,132 23,670 29,092 '25,049 '25,425 24,831 27,259 29,276 26 Argentina 1,146 1,534 1,416 1,861 2,260 1,692 1,550 1,453 1,393 27 Bahamas 1,874 2,770 3,596 7,259 3,327 '3,954 3,629 4,601 7,245 28 Bermuda 184 218 321 373 '339 '396 383 372 409 29 Brazil 1,219 1,438 1,396 1,412 1,298 1,220 1,295 1,382 1,351 30 British West Indies 1,311 1.877 3,998 4,814 3,949 '4,769 4,009 5,474 5,378 31 Chile 319 337 360 394 361 376 380 346 351 32 Colombia 417 1,021 1,221 1,329 1,300 1,424 1,,4 29 1,486 1,431 33 Cuba 6 6 6 6 7 7 9 10 7 34 Ecuador 120 320 330 356 318 325 378 347 405 35 Guatemala3 458 552 448 415 419 347 36 Jamaica3 41 46 66 75 59 78 37 Mexico 2,070 2,870 2,876 2.960 '2,970 '2,776 2,921 3,171 3,113 38 Netherlands Antilles4 129 158 196 212 289 320 435 288 317 39 Panama 1,115 1,167 2,331 2,226 '2,609 '2,386 2,639 2,628 2,741 40 Peru 243 257 287 309 274 282 309 311 320 41 Uruguay 172 245 243 221 208 220 218 185 197 42 Venezuela 3,309 3,118 2,929 3,225 3,298 '3,157 3,229 3,208 2,558 43 Other Latin America and Caribbean., 1,393 1,797 2,167 1,636 '1,643 '1,606 1,530 1.517 1,637 44 Asia 22,384 29,766 30,488 36,424 '35,463 33,665 35,171 33,463 33,390 45 China, People's Republic of (Mainland). 123 48 53 50 47 53 47 44 45 46 China, Republic of (Taiwan) 1,025 990 1,013 1,224 '1,060 1,053 1,195 1,262 1,280 47 Hong Kong 605 894 1,094 1,118 1,489 1,085 1,191 1,211 1,202 48 India 115 638 961 937 962 899 798 762 833 49 Indonesia 369 340 410 649 451 330 597 309 347 50 Israel 387 392 559 486 568 476 519 440 432 51 Japan 10,207 14,363 14,616 20,153 '19,731 19,020 20,374 19,755 19,889 52 Korea 390 438 602 111 817 748 714 736 760 53 Philippines 700 628 687 601 688 595 640 566 622 54 Thailand 252 277 264 258 304 297 320 296 289 55 Middle East oil-exporting countries5 7,355 9,360 8,979 8.961 '8,059 7,894 7,267 6,719 6,351 56 Other Asia 856 1,398 1,250 1,211 '1,285 '1,213 1,510 1,364 1,339 57 Africa 3,369 2,298 2,535 2,697 r2,643 2,360 3,013 2,578 2,645 58 Egypt 342 333 404 455 461 402 594 463 All 59 Morocco 68 87 66 31 29 28 28 67 IA 60 South Africa 166 141 174 167 185 226 175 160 238 61 Zaire 62 36 39 46 49 44 73 52 45 62 Oil-exporting countries6. '2,240 '1,116 1,155 1,393 1,244 '979 1,365 1,198 1,270 63 Other Africa '491 '585 698 605 '676 '681 IIS 638 601 64 Other countries., 2,119 2,012 1,297 1,467 1,267 ' 1,414 1,315 1,180 1,090 65 Australia 2,006 1,905 1,140 1,258 1,129 '1,21 1,158 1,051 898 66 All other 113 107 158 209 138 203 157 130 191 67 Nonmonetary international and regional organizations 5,699 5,714 3,274 3,069 '3,129 2,942 2,678 2,823 3,406 68 International 5,415 5,157 2,752 2,601 2,430 2,31 2,027 2,157 2,339 69 Latin American regional. 188 267 278 162 430 395 411 437 799 70 Other regional 7 96 290 245 306 '269 236 241 228 269 1 Includes the Bank for International Settlements. Beginning April 6 Comprises Algeria, Gabon, Libya, and Nigeria. 1978, also includes Eastern European countries not listed in line 23. 7 Asian, African, Middle Eastern, and European regional organizations, 2 Beginning April 1978 comprises Bulgaria, Czechoslovakia, German except the Bank for International Settlements, which is included in Democratic Republic, Hungary, Poland, and Romania. "Other Western Europe." 3 Included in "Other Latin America and Caribbean" through March 1978. A For a description of the changes in the International Statistics 4 Includes Surinam through December 1975. tables, see July 1978 BULLETIN, p. 612. 5 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A61 3.16 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1978 Area and country 1975 1976 1977 Apr.Ar Mayr June July Aug. Sept.f 1 Total 58,308 79,301 90,206 88,231 87,832 r87,212 r87,349 91,844 94,226 2 Foreign countries. 58,275 79,261 90,163 88,183 87,797 r87,180 '87,313 91,806 94,187 3 Europe 11,109 14,776 18,114 15,239 15,811 r16,249 15,762 16,829 18,239 4 Austria 35 63 65 76 94 105 116 107 95 5 Belgium-Luxembourg... 286 482 561 586 793 731 634 823 946 6 Denmark 104 133 173 145 185 145 129 146 147 7 Finland 180 199 172 180 184 182 190 216 221 8 France 1,565 1,549 2,082 1,638 1,679 1,891 1,813 2,523 2,792 9 Germany 380 509 644 694 751 787 689 632 751 10 Greece 290 279 206 200 279 204 190 125 127 11 Italy 443 993 1,334 885 1,,1 84 965 1,078 1,027 1,028 12 Netherlands 305 315 338 416 468 383 436 405 380 13 Norway 131 136 162 190 209 217 210 163 263 14 Portugal 30 88 175 131 132 126 140 105 100 15 Spain 424 745 722 592 699 706 669 714 758 16 Sweden 198 206 218 199 184 219 244 290 326 17 Switzerland 199 379 564 697 390 685 631 1,013 841 18 Turkey 164 249 360 280 306 309 313 305 305 19 United Kingdom 5,170 7,033 8,964 6,817 6,951 n ,270 6,961 6,933 7,779 20 Yugoslavia 210 234 31' 380 285 320 300 280 306 21 Other Western Europe 1. 76 85 86 267 137 153 165 125 129 22 U.S.S.R 406 485 413 319 362 319 305 343 371 23 Other Eastern Europe2 . 513 613 566 621 536 534 548 553 574 24 Canada 2,834 3,319 3,355 2,733 2,412 r2,493 3,116 3,343 3,447 25 Latin America and Caribbean 23,863 38,879 45,850 48,994 46,942 r45,990 46,974 49,469 50,265 26 Argentina 1,377 1,192 1,478 1,533 1,595 rl,556 1,572 1,566 1,694 27 Bahamas 7,583 15,464 19,858 21,968 21,041 18,725 19,643 22,172 19,898 28 Bermuda 104 150 232 178 345 145 145 194 141 29 Brazil 3,385 4,901 4,629 4,301 4,443 r4,659 4,599 4,858 5,264 30 British West Indies 1,464 5,082 6,481 7,914 6,272 7,412 6,872 6,885 8,400 31 Chile 494 597 675 721 717 745 745 809 742 32 Colombia 751 675 671 550 578 615 648 690 728 33 Cuba 14 13 10 1 34 Ecuador 252 375 517 523 529 562 546 560 646 35 Guatemala 3 61 79 90 83 115 78 36 Jamaica3 19 42 53 49 44 46 37 Mexico 3,745 4,822 4,909 4,460 4,505 r4,865 5,068 5,004 4,978 38 Netherlands Antilles4 72 140 224 201 206 212 206 198 230 39 Panama 1,138 1,372 1,410 2,185 2,147 rl,901 2,278 1,625 2,280 40 Peru 805 933 962 888 920 930 918 928 966 41 Uruguay 57 42 80 51 58 53 52 56 52 42 Venezuela 1,319 1,828 2,318 2,151 2,233 r2,240 2,337 2,515 2,752 43 Other Latin America and Caribbean. 1,302 1,293 1,394 1,288 1,233 r1,227 1,212 1,250 1,371 44 Asia 17,706 19,204 19,236 18,045 19,448 r19,317 r18,326 18,918 19,007 45 China, People's Republic of (Mainland). 22 3 10 20 22 13 5 31 8 46 China, Republic of (Taiwan) 1,053 1,344 1,719 1,412 1,456 1,343 1,193 1,177 1,241 47 Hong Kong 289 316 543 826 754 769 698 666 689 48 India 57 69 53 53 70 80 46 73 76 49 Indonesia 246 218 232 165 137 146 139 125 151 50 Israel 721 755 584 432 494 468 445 504 544 51 Japan 10,944 11,040 9,839 9,528 9,741 10,023 9,779 9,876 10,215 52 Korea 1,791 1,978 2,336 1,850 1,801 r2,328 rl ,937 1,925 1,930 53 Philippines 534 719 594 614 751 r680 r641 743 733 54 Thailand 520 442 633 686 730 711 725 693 634 5 5 5 6 O M t i h d e d r l e A E si a a s t oil-exporting countries5.... 7 7 8 4 5 4 1, r 4 86 5 3 9 1,7 9 4 4 6 7 1,4 9 9 6 2 7 2,5 9 2 7 1 0 r rl l, , 1 5 8 75 1 1 1 , , 5 1 5 6 1 7 1 1 , , 9 1 5 5 1 5 1 1 , ,1 6 1 6 7 8 57 Africa 1,933 2,311 2,518 2,226 2,218 r2,136 2,133 2,267 2,160 58 Egypt 123 126 119 79 72 70 79 62 67 59 Morocco 8 27 43 35 37 38 36 42 38 60 South Africa 657 957 1,066 1,039 1,055 1,054 1,036 1,058 1,025 61 Zaire 181 112 98 77 80 79 79 79 82 62 Oil-exporting countries6. 382 524 510 426 441 383 340 459 407 63 Other 581 565 682 569 533 r512 563 566 542 64 Other countries., 830 772 1,090 947 965 995 1,002 980 1,069 65 Australia 700 597 905 780 798 828 836 835 900 66 All other 130 175 186 167 166 167 167 145 169 67 Nonmonetary International and Regional Organizations7 33 40 43 48 34 31 36 38 39 1 Includes the Bank for International Settlements. Beginning April 6 Comprises Algeria, Gabon, Libya, and Nigeria. 1978, also includes Eastern European countries not listed in line 23. 7 Excludes the Bank for International Settlements, which is included 2 Beginning April 1978 comprises Bulgaria, Czechoslovakia, German in "Other Western Europe." Democratic Republic, Hungary, Poland, and Romania. 3 Included in "Other Latin America and Caribbean" through March • Data for period prior to April 1978 include claims of banks' domestic 1978. customers on foreigners. For a description of the changes in the Inter- 4 Includes Surinam through December 1975. national Statistics tables, see July 1978 BULLETIN, p. 612. 5 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • December 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 Type of claim 1975 1976 1977 Apr.Ar Mayr Juner July Aug. Sept.? Oct.f 1 Total 58,308 79,301 90,206 96,184 103,342 2 Banks' own claims on foreigners. 88,231 87,832 87,212 87,349 91,844 94,226 96,394 Foreign public borrowers. 5,516 5,739 6,036 6,858 7,292 7,634 7,948 Own foreign offices1 35,960 35,882 31,590 33,813 37,325 34,757 36,383 Unaffiliated foreign banks. 28,142 27,772 30,166 27,499 27,400 31,492 30,924 Deposits 4,403 4,656 5,116 4,623 4.352 4,480 3,865 Other 23,738 23,115 25,050 22,876 23,049 27,012 27,059 All other foreigners 18,613 18.439 19,419 19,179 19,826 20,343 21,139 9 Claims of banks' domestic customers2. 8,973 9,116 10 Deposits 389 500 11 Negotiable and readily transferable instruments3 3,694 3,724 12 Outstanding collections and other claims4.... 5,467 5,756 6,176 4,889 4,892 13 MEMO: Customer liability on acceptances. 11,995 12,747 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. A 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.f Dec. Mar. June Sept. 1 Total 5555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,111111111111111111112222222222222222222288888888888888888888 5555555555555555555599999999999999999999,,,,,,,,,,,,,,,,,,,,555555555555555555551111111111111111111166666666666666666666 By borrower: 4444444444444444444433333333333333333333,,,,,,,,,,,,,,,,,,,,666666666666666666668888888888888888888822222222222222222222 4444444444444444444466666666666666666666,,,,,,,,,,,,,,,,,,,,666666666666666666668888888888888888888844444444444444444444 22222222222222222222,,,,,,,,,,,,,,,,,,,,999999999999999999991111111111111111111199999999999999999999 33333333333333333333,,,,,,,,,,,,,,,,,,,,666666666666666666664444444444444444444400000000000000000000 4 All other foreigners 4444444444444444444400000000000000000000,,,,,,,,,,,,,,,,,,,,777777777777777777776666666666666666666633333333333333333333 4444444444444444444433333333333333333333,,,,,,,,,,,,,,,,,,,,000000000000000000004444444444444444444444444444444444444444 5 Maturity of over 1 year * 1111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,444444444444444444444444444444444444444455555555555555555555 1111111111111111111122222222222222222222,,,,,,,,,,,,,,,,,,,,888888888888888888883333333333333333333322222222222222222222 6 Foreign public borrowers . 33333333333333333333,,,,,,,,,,,,,,,,,,,,111111111111111111116666666666666666666622222222222222222222 33333333333333333333,,,,,,,,,,,,,,,,,,,,999999999999999999992222222222222222222288888888888888888888 7 All other foreigners 88888888888888888888,,,,,,,,,,,,,,,,,,,,222222222222222222228888888888888888888833333333333333333333 88888888888888888888,,,,,,,,,,,,,,,,,,,,999999999999999999990000000000000000000044444444444444444444 By area: Maturity of 1 year or less1 8 Europe 99999999999999999999,,,,,,,,,,,,,,,,,,,,555555555555555555553333333333333333333322222222222222222222 1111111111111111111100000000000000000000,,,,,,,,,,,,,,,,,,,,333333333333333333338888888888888888888866666666666666666666 9 Canada 11111111111111111111,,,,,,,,,,,,,,,,,,,,666666666666666666661111111111111111111155555555555555555555 11111111111111111111,,,,,,,,,,,,,,,,,,,,999999999999999999994444444444444444444433333333333333333333 10 Latin America and Caribbean 1111111111111111111177777777777777777777,,,,,,,,,,,,,,,,,,,,000000000000000000003333333333333333333366666666666666666666 1111111111111111111188888888888888888888,,,,,,,,,,,,,,,,,,,,555555555555555555551111111111111111111188888888888888888888 11 Asia 1111111111111111111133333333333333333333,,,,,,,,,,,,,,,,,,,,555555555555555555551111111111111111111155555555555555555555 1111111111111111111133333333333333333333,,,,,,,,,,,,,,,,,,,,777777777777777777771111111111111111111122222222222222222222 12 Africa 11111111111111111111,,,,,,,,,,,,,,,,,,,,444444444444444444446666666666666666666611111111111111111111 11111111111111111111,,,,,,,,,,,,,,,,,,,,555555555555555555553333333333333333333355555555555555555555 13 All other2 555555555555555555552222222222222222222233333333333333333333 555555555555555555559999999999999999999911111111111111111111 Maturity of over 1 year* 14 Europe ... . . . .. 22222222222222222222,,,,,,,,,,,,,,,,,,,,999999999999999999997777777777777777777799999999999999999999 33333333333333333333,,,,,,,,,,,,,,,,,,,,111111111111111111110000000000000000000044444444444444444444 15 Canada 333333333333333333333333333333333333333300000000000000000000 777777777777777777779999999999999999999933333333333333333333 16 Latin America and Caribbean 55555555555555555555,,,,,,,,,,,,,,,,,,,,999999999999999999997777777777777777777799999999999999999999 66666666666666666666,,,,,,,,,,,,,,,,,,,,888888888888888888884444444444444444444433333333333333333333 17 Asia 11111111111111111111,,,,,,,,,,,,,,,,,,,,222222222222222222228888888888888888888822222222222222222222 11111111111111111111,,,,,,,,,,,,,,,,,,,,333333333333333333330000000000000000000055555555555555555555 18 Africa 666666666666666666662222222222222222222299999999999999999999 555555555555555555557777777777777777777777777777777777777777 19 All other2 222222222222222222224444444444444444444477777777777777777777 222222222222222222221111111111111111111111111111111111111111 1 Remaining time to maturity. • 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 4 Other claims 607 802 731 1,245 1,415 1,432 1,422 1,435 5 Claims of banks' domestic customers2 1 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 • December 1978 3.20 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1978 1978 Country or area 1976 1977 O Ja ct n .2 .- > Apr. May June July Aug. Sept.P Oct.P Holdings (end of period) 1 Estimated total... 15,799 '38,640 '39,682 '39,387 '40,658 '41,148 '41,573 42,180 43,622 2 Foreign countries. 12,765 '33,894 '34,833 '34,366 '34,964 '36,306 '37,119 37,826 38,472 Europe 2,550 '73,936 '13,628 '72,966 '75,706 ' 14,226 '14,154 14,689 15,260 Belgium-Luxembourg.. 14 19 19 19 19 19 19 19 19 Germany 764 3,168 3,820 4,031 4,361 5,531 5,761 6,157 6,645 Netherlands 288 911 1,079 1,070 1,113 1,113 1,278 1,306 1,356 Sweden 191 100 175 175 185 200 210 211 231 Switzerland 261 '497 '464 '468 '529 '590 '636 694 731 9 United Kingdom 485 8,888 7,737 6,856 '6,527 '6,403 '5,862 5.909 5,915 10 Other Western Europe. 323 349 333 348 371 370 387 393 365 Eastern Europe 4 4 12 Canada. 256 288 253 261 264 275 276 276 151 13 Latin America and Caribbean 313 551 535 503 494 485 545 445 426 14 Venezuela 149 199 189 174 174 174 244 144 144 15 Other Latin American and Caribbean. 47 183 184 167 158 149 139 139 119 16 Netherlands Antilles 118 170 162 162 162 162 162 162 162 17 Asia 9,323 18,745 20,070 20,137 20,605 20,831 21,647 21^919 21,938 18 Japan. 2,687 6,860 8,332 8,964 9,616 9,927 10,791 11,096 11,560 19 Africa 543 362 341 491 491 491 491 491 691 20 All other. * 11 6 8 4 -3 7 5 6 21 Nonmonetary international and regional organizations 3,034 4,746 4,849 '5,021 5,694 4,842 '4,454 4,354 5,150 22 International 2,906 4,646 4,740 4,931 5,633 4,809 4,421 4,354 5,118 23 Latin American regional. 128 100 110 90 61 33 33 * 33 Transactions (net purchases, or sales (—), during period) 24 Total 8,096 '22,843 4,981 '-1,584 -295 '1,271 490 425 639 1,410 25 Foreign countries 5,393 '21,130 4,576 '-1,679 -467 '599 1,342 813 706 646 26 Official institutions 5,119 '20,369 3,984 '-1,704 -566 '522 1,313 710 704 577 27 Other foreign 274 '762 593 26 98 77 29 103 3 69 28 Nonmonetary international and regional organizations 2,704 1,713 405 95 171 671 -852 -387 -67 764 MEMO: Oil-exporting countries 29 Middle East i 3,887 4,451 -1,421 -72 -563 -185 -85 -31 -31 -401 30 Africa 2 222211 --118811 333300 115500 220000 1 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, 3 Estimated official and private holdings of marketable U.S. Treasury and United Arab Emirates (Trucial States). securities with an original maturity of more than 1 year. Data are based 2 Comprises Algeria, Gabon, Libya, and Nigeria. on a benchmark survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign countries. 3.21 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1978 AAsssseettss 11997755 11997766 11997777 May June July Aug. Sept. Oct. NOV.p 1 Deposits 353 352 424 453 288 347 309 325 305 379 Assets held in custody: 2 U.S. Treasury securities1 60,019 66,532 91,962 100,146 99,465 101,696 102,902 102,699 107,934 112,434 3 Earmarked gold2 16,745 16,414 15,988 15,667 15,620 15,594 15,572 15,553 15,548 15,525 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 O Ja c n t. . f - Apr. May June' July Aug. Sept.f Oct.f U.S. corporate securities Stocks 1 Foreign purchases 18,227 14,155 17,087 1,864 2,391 2,055 1,305 2,444 2,257 1,510 2 Foreign sales 15,475 11,479 15,255 1,151 1,963 1,936 1,296 2,678 2,115 1,523 3 Net purchases, or sales ( —) 2,753 2,676 1,831 713 427 119 9 -235 141 -14 4 Foreign countries 2,740 2,661 1,878 720 427 139 9 -235 144 -15 5 Europe 336 1,006 980 508 323 39 -6 -152 -33 -91 6 256 40 85 79 -2 -39 -15 9 2 -4 7 Germany 68 291 348 125 52 83 17 -54 24 -30 8 Netherlands -199 22 -19 16 9 -18 9 -22 7 7 9 Switzerland -100 152 -476 103 31 -76 -52 -184 -115 -120 10 United Kingdom 340 613 1,078 173 229 101 50 110 54 58 11 Canada 324 65 -69 44 -58 -12 -16 -18 17 22 12 Latin America and Caribbean 155 127 137 37 36 33 -35 48 1 13 13 Middle East1 1,803 1,390 669 97 90 59 69 -134 120 42 14 Other Asia 119 59 171 35 39 23 -5 35 35 -4 15 Africa 7 5 -10 -1 -4 -3 1 -12 5 2 16 Other countries -4 8 1 * * * * -1 -1 2 17 Nonmonetary international and regional organizations 13 15 -47 -7 1 -21 * * -3 1 Bonds2 18 Foreign purchases 5,529 7,739 6,638 '311 '779 669 1,029 872 611 733 19 Foreign sales '4,327 '3,546 4,494 '345 333 302 '596 490 542 530 20 Net purchases, or sales (—) '1,202 '4,192 2,144 '-35 '446 367 '433 383 69 203 21 Foreign countries '1,243 '4,096 1,938 '-33 '448 295 '411 330 72 143 22 Europe '86 '1,863 797 '-96 41 157 '387 137 89 89 23 39 -34 9 '-5 8 -3 13 6 -2 -10 24 Germany -49 '-20 111 10 21 14 18 38 3 -12 25 Netherlands -29 72 25 3 -3 -7 11 18 19 -4 26 Switzerland '155 '94 -147 -33 -36 5 -74 -20 43 9 27 23 '1,703 812 -54 75 154 416 89 * 110 28 Canada 96 141 95 13 9 6 14 24 16 -5 29 Latin America and Caribbean 94 64 74 1 12 2 -8 17 11 13 30 Middle East1 1,179 1,695 839 33 370 91 135 99 -73 -19 31 Other Asia -165 338 129 '15 '14 39 -116 52 29 66 32 Africa -25 -6 — 1 * * * * * * * 33 Other countries -21 * 4 1 1 * * 1 * * 34 Nonmonetary international and regional organizations -41 96 207 -2 -1 72 22 53 -3 60 Foreign securities 35 Stocks, net purchases, or sales (—) -323 -410 373 143 -13 -61 10 51 -69 -19 36 Foreign purchases 1,937 2,255 3,069 404 271 247 333 382 261 299 37 Foreign sales 2,259 2,665 2,696 261 284 308 323 331 330 318 38 Bonds, net purchases, or sales (—) -8,774 '-5,095 -3,620 -501 -39 -636 -291 -196 33 -683 39 Foreign purchases 4,932 '8,040 9,115 '1,221 1,017 1,095 921 982 759 935 40 Foreign sales 13,706 '13,134 12,735 '1,721 1,056 1,730 1,212 1,178 726 1,618 41 Net purchases, or sales ( —) of stocks and bonds.. -9,097 '-5,504 -3,248 -358 -51 -697 -281 -145 -36 -702 42 Foreign countries -7,199 '-3,947 -3,009 '-429 -67 -742 -283 -150 -70 -513 43 Europe -850 '-1,100 16 '156 -194 -220 -171 94 -86 13 44 Canada -5,245 -2,404 -2,967 -807 -80 -420 -146 -161 -41 -747 45 Latin America and Caribbean -3 -80 187 120 72 -68 8 -17 -12 -17 46 Asia -733 '-97 353 '144 131 192 44 54 69 231 47 Africa 48 2 -442 '-44 * -44 -25 -123 -1 1 48 Other countries -416 -267 -155 2 4 -182 7 3 1 6 49 Nonmonetary international and regional organizations -1,898 -1,557 -239 70 16 45 2 5 34 -189 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 • December 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 Type, and area or country June Sept. Dec. Mar. June? June Sept. Dec. Mar. June? Liabilities to foreigners Claims on foreigners 1 Total. 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 6,459 7,171 7,564 7,992 15,192 14,132 14,863 16,762 16,711 3 Payable in foreign currencies 715 857 801 884 825 1,160 1,117 1,430 1,718 1,582 4 Deposits with banks abroad in reporter's name 448 414 620 724 616 5 Other 713 703 809 995 907 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 Europe. 2,253 2,335 2,512 2,854 3,028 5,799 5,077 5,797 5,626 5,326 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 Denmark 14 16 14 23 22 40 44 56 47 40 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 2,649 2,682 3,429 3,486 29 Latin America 1,028 1,035 1,186 1,352 1,419 5,000 4,619 4,491 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 Netherlands Antilles 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 Asia. 2,017 22,,664400 2,871 2,850 33,,000000 2,323 2,403 2,782 2,976 2,836 45 China, People's Republic of (Mainland). 2 8 1 1 P 9 22 21 46 China, Republic of (Taiwan) 138 152 156 167 170 131 139 157 144 173 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 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 609 588 591 612 603 370 346 393 408 433 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. 438 361 400 378 335 248 221 245 111 279 62 Other countries., 98 111 93 104 111 149 153 146 145 144 63 Australia 78 93 75 89 97 110 113 111 111 109 64 All other 20 18 18 14 14 40 41 35 34 34 65 Nonmonetary international and regional organizations 170 154 215 147 132 1 1 1 1 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 Type and country 1974 1975 1976 1977 June July Aug. Sept.* 1 Total 3,357 3,799 5,720 7,179 9,306 9,679 8,912 8,924 10,092 8,550 By type: 2 Payable in dollars 2,660 3,042 4,984 6,158 8,090 8,534 7,771 7,639 8,804 7,331 3 Deposits 2,591 2,710 4,505 5,740 7,367 7,897 7,218 7,156 8,243 6,894 4 Short-term investments 1. 69 332 479 418 723 637 553 483 561 437 5 Payable in foreign currencies 697 757 735 1,021 1,216 1,145 1,142 1,285 1,289 1,220 6 Deposits 429 511 404 553 645 544 599 669 669 725 7 Short-term investments 1. 268 246 331 468 571 601 543 616 620 495 By country: 8 United Kingdom 1,350 1,306 1,838 2,144 1,817 1,660 1,683 1,861 1,839 2,171 9 Canada 967 1,156 1,698 1,777 2,810 2,866 2,547 2,513 3,008 2,440 10 Bahamas 391 546 1,355 1,904 3,025 3,612 2,975 3,222 3,541 2,235 11 Japan 398 343 133 153 318 266 273 286 292 905 12 All other 252 446 716 1,201 1,336 1,275 1,435 1,042 1,412 799 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 3,358 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 297 289 284 250 250 1,452 1,367 1,402 1,387 1,298 9 Bahamas 160 151 148 142 141 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 15 Africa 3 3 2 2 2 158 165 161 156 154 16 All other1 67 59 60 60 60 67 63 59 60 59 * Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • December 1978 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Per cent per annum Rate on Nov. 30, 1978 Rate on Nov. 30, 1978 Rate on Nov. 30, 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 12.5 Nov. 1978 Canada 10.75 Nov. 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 June July Aug. Sept. Oct. Nov. 1 Euro-dollars 7.02 5.58 6.03 8.33 8.52 8.48 9.12 10.12 11.51 2 United Kingdom 10.63 11.35 8.07 10.02 10.13 9.42 9.29 10.44 12.00 3 Canada 8.00 9.39 7.47 8.12 8.23 8.77 9.08 9.68 10.37 4 Germany 4.87 4.19 4.30 3.61 3.71 3.64 3.67 3.90 3.81 5 Switzerland 3.01 1.45 2.56 1.38 1.74 0.67 0.58 0.24 0.20 6 Netherlands 5.17 7.02 4.73 4.60 5.61 6.27 6.91 11.23 8.86 7 France 7.91 8.65 9.20 7.94 7.61 7.39 7.40 7.37 7.06 8 Italy 10.37 16.32 14.26 11.75 11.75 11.75 10.94 10.99 11.17 9 Belgium 6.63 10.25 6.95 5.61 5.84 7.09 7.24 8.55 9.19 10 Japan 11.64 7.70 6.22 4.75 4.75 4.64 4.51 4.44 4.78 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 June July Aug. Sept. Oct. Nov. 1 Australia/dollar 130.77 122.15 110.82 113.83 114.94 115.41 115.29 116.87 114.53 2 Austria/shilling 5.7467 5.5744 6.0494 6.6718 6.7547 6.9490 7.0102 7.4526 7.1808 3 Belgium/franc 2.7253 2.5921 2.7911 3.0590 3.0864 3.1834 3.2207 3.4503 3.3389 4 Canada/dollar 98.30 101.41 94.112 89.143 88.921 87.690 85.739 84.546 85.244 5 Denmark/krone 17.437 16.546 16.658 17.723 17.846 18.171 18.411 19.584 19.025 6 Finland/markka 27.285 25.938 24.913 23.390 23.809 24.381 24.586 25.454 24.932 7 France/franc 23.354 20.942 20.344 21.841 22.531 22.998 22.909 23.767 22.958 8 Germany/deutsche mark... 40.729 39.737 43.079 47.984 48.647 50.084 50.778 54.430 52.508 9 Jndia/rupee 11.926 11.148 11.406 11.900 12.245 12.483 12.445 12.643 12.458 10 Ireland/pound 222.16 180.48 174.49 183.72 189.49 194.06 195.95 200.75 196.08 11 Italy/lira .15328 .12044 .11328 .11634 .11804 .11952 .12050 .12317 .11857 12 Japan /yen .33705 .33741 .37342 .46744 .50101 .53002 .52656 .54478 .52066 13 Malaysia/ringgit 41.753 39.340 40.620 41.964 42.447 43.433 43.603 45.627 45.415 14 Mexico/peso 8.0000 6.9161 4.4239 4.3840 4.3756 4.3758 4.3907 4.3904 4.3881 15 Netherlands/guilder 39.632 37.846 40.752 44.716 45.076 46.203 46.733 50.017 48.512 16 New Zealand/dollar 121.16 99.115 96.893 101.90 103.85 105.42 105.58 107.37 105.41 17 Norway/krone 19.180 18.327 18.789 18.450 18.524 19.018 19.189 20.325 19.736 18 Portugal/escudo 3.9286 3.3159 2.6234 2.1857 2.1939 2.2042 2.1948 2.2342 2.1510 19 South Africa/rand 136.47 114.85 114.99 114.93 115.00 115.00 115.00 115.00 115.04 20 Spain/peseta 1.7424 1.4958 1.3287 1.2587 1.2885 1.3344 1.3605 1.4317 1.4051 21 Sri Lanka/rupee 14.385 11.908 11.964 6.2859 6.3245 6.3926 6.3855 6.3757 6.4695 22 Sweden/krona 24.141 22.957 22.383 21.690 22.012 22.523 22.592 23.349 22.856 23 Switzerland/franc 38.743 40.013 41.714 53.046 55.443 60.013 63.765 65.117 59.766 24 United Kingdom/pound... 222.16 180.48 174.49 183.72 189.49 194.06 195.95 200.75 196.08 MEMO: 25 United States/dollar* r98.34 '105.57 '103.31 '94.74 92.44 89.99 89.51 86.04 88.86 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

Business Finance A69 4.10 SALES, REVENUE, PROFITS, AND DIVIDENDS—Large Manufacturing Corporations Millions of dollars 1976 1977 1978 Industry 1976 Q3 Q4 Q1 Q2 Q3 Q4 Qlr Q2 Total (170 corps.) Sales 667,821 748,757 161,596 180,462 177,430 190,302 180,384 200,641 195,072 Total revenue 676,596 758,013 164,631 181,546 179,496 192,996 182,488 203.033 197,471 Profits before taxes 71,885 78,909 16,894 18,587 18,874 21,468 18,146 20,421 19,725 Profits after taxes 34,707 37,854 8,442 8,113 9,056 10,472 9,337 8,989 9,693 MEMO: PAT unadjusted1 36,016 38,391 8,550 9,340 9,107 10,553 8,656 10,075 9,684 Dividends 14,491 17,532 3,480 4,371 3,840 4,269 3,985 5,438 4,306 Nondurable goods industries (86 corps.):2 Sales 362,935 404,141 88,678 99,926 95,836 101,035 97,144 110,126 104,522 Total revenue 368,184 409,601 90,967 100,174 96,948 102,807 98,232 111,614 105,877 Profits before taxes 42,694 45,906 10,632 10,793 11,074 12,064 11,195 11,573 11,347 Profits after taxes 18,571 22,284 4,871 4,058 4,837 5,160 5,144 4,430 5,137 MEMO: PAT unadjusted1 19,468 19,768 4,962 4,868 4,880 5,224 5,234 5,249 5,136 Dividends 7,910 8,944 1,990 2,094 2,185 2,227 2,268 2,264 2,402 Durable goods industries (84 corps.): 3 Sales 304,886 344,616 72,918 80,536 81,594 89,267 83,240 90,515 90,550 Total revenue 308,412 348,412 73,664 81,372 82,548 90,189 84,256 91,419 91,594 Profits before taxes 29,191 33,003 6,262 7,794 7,800 9,404 6,951 8,848 8,378 Profits after taxes 16,136 18,283 3,571 4,055 4,219 5,312 4,193 4,559 4,556 MEMO: PAT unadjusted1 16,548 17,804 3,588 4,472 4,227 5,329 3,422 4,826 4,548 Dividends 6,577 8,588 1,490 2,277 1,655 2,042 1,717 3,174 1,904 Selected industries: Food and kindred products (28 corps.): Sales 62,568 68,422 16,048 16,701 15,903 16,776 16,947 18,796 17.470 Total revenue 63,142 69,168 16,221 16,533 16,155 17,136 17,239 18,638 17,860 Profits before taxes 5,750 6,040 1,462 1,310 1,448 1,560 1,526 1,506 1,535 Profits after taxes 2,890 3,172 817 630 739 825 826 782 839 MEMO: PAT unadjusted1 3,013 3,309 827 734 746 835 836 892 840 Dividends 1,259 1,433 309 318 342 352 364 375 397 Chemical and allied products (22 corps.): Sales 64,125 70,251 15,878 16,410 17,103 17,347 17,586 18,215 18,930 Total revenue 64,837 70,906 16,084 16,612 17,271 17,526 17,743 18,366 19.117 Profits before taxes 8,197 8,530 2,008 1,893 2,112 2,290 2,062 2,066 2,353 Profits after taxes 4,511 4,604 1,130 929 1,192 1,288 1,184 940 1.334 MEMO: PAT unadjusted1 4,622 4,831 1,163 1,081 1,181 1,289 1,178 1,183 1,317 Dividends 1,918 2,186 481 548 514 539 553 580 567 Petroleum refining (15 corps.): Sales 196,154 221,694 46,923 56,510 52,344 55,903 51,593 61,854 56,996 Total revenue 199,688 225,338 48,744 56,649 52,891 57,096 52,130 63,221 37,695 Profits before taxes 25,857 28,144 6,559 6,834 6,746 7,396 6,818 7,184 6.832 Profits after taxes 9,555 10,072 2,606 2,085 2,498 2,655 2,694 2,225 2.615 MEMO: PAT unadjusted1 10,168 10,684 2,635 2,617 2,546 2,708 2,756 2,674 2,627 Dividends 4,089 4,615 1,036 1,065 1,163 1,160 1,166 1,126 1,247 Primary metals and products (23 corps.): Sales 54,044 58,713 13,751 13,119 13,773 15,573 14,454 14,913 15,459 Total revenue 54,825 59,488 13,958 13,313 13,963 15,769 14,636 15,120 15,681 Profits before taxes 2,834 1,476 701 576 460 100 239 677 390 Profits after taxes 1,652 1,579 513 127 260 536 493 290 173 MEMO: PAT unadjusted1 1,947 1,474 521 400 274 553 287 360 183 Dividends 926 1,088 230 251 234 246 266 342 226 Machinery (27 corps.): Sales 87,274 96,820 21,133 24,059 22,727 24,380 24,317 25,396 25,472 Total revenue 88,519 98,380 21,280 24,460 23,051 24,702 24,767 25,860 25,831 Profits before taxes 11,320 13,158 2,700 3,370 2,900 3,318 3,264 3,676 3,209 Profits after taxes 6,181 7,158 1,461 1,837 1,573 1,805 1,771 2,009 1,749 MEMO: PAT unadjusted1 6,202 7,204 1,467 1,864 1,571 1,804 1,782 2,047 1,745 Dividends 2,383 3,495 602 663 712 767 702 1,314 823 Motor vehicles and equipment (9 corps.): Sales 107,563 127,049 24,250 28,208 31,069 33,502 28,835 33,643 33,713 Total revenue 108,394 127,816 24,500 28,250 31,350 33,716 29,104 33,646 33,987 Profits before taxes 8,909 10,738 1,272 2,087 2,988 3,489 1,575 2,686 2,986 Profits after taxes 4,870 5,747 705 1,166 1,599 1,914 892 1,342 1,654 MEMO: PAT unadjusted1 4,918 5,861 704 1,219 1,603 1,926 898 1,434 1,648 Dividends 2,062 2,607 372 983 392 698 413 1,104 473 1 Profits after taxes unadjusted are as reported by the individual com- of returns, allowances, and discounts, and exclude excise taxes paid dipanies. These data are not adjusted to eliminate differences in accounting rectly by the company. Total revenue data include, in addition to sales, treatments of special charges, credits, and other nonoperating items. income from nonmanufacturing operations and nonoperating income. 2 Includes 21 corporations in groups not shown separately. Profits are before dividend payments and have been adjusted to exclude 3 Includes 25 corporations in groups not shown separately. special charges and credits to surplus reserves and extraordinary items not related primarily to the current reporting period. Income taxes (not NOTE.—Data are obtained from published reports of companies and shown) include Federal, State and local government, and foreign. reports made to the Securities and Exchange Commission. Sales are net Previous series last published in June 1972 BULLETIN, p. A-50. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 Federal Reserve Board of Governors G. WILLIAM MILLER, Chairman PHILIP E. COLDWELL HENRY C. WALLICH J. CHARLES PARTEE OFFICE OF BOARD MEMBERS OFFICE OF STAFF DIRECTOR FOR MONETARY AND FINANCIAL 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 EDWARD C. ETTIN, Deputy Staff Director SIDNEY L. JONES, Assistant to the Board MURRAY ALTMANN, Assistant to the Board JAY PAUL BRENNEMAN, Special Assistant to the PETER M. KEIR, Assistant to the Board Board STANLEY J. SIGEL, Assistant to the Board FRANK O'BRIEN, JR., Special Assistant to the Board NORM AND R. V. BERNARD, Special Assistant to the JOSEPH S. SIMS, Special Assistant to the Board Board DONALD J. WINN, Special Assistant to the Board DIVISION OF RESEARCH AND STATISTICS LEGAL DIVISION JAMES L. KICHLINE, Director JOSEPH S. ZEISEL, Deputy Director NEAL L. PETERSEN, General Counsel JOHN H. KALCHBRENNER, Associate Director ROBERT E. MANNION, Associate General Counsel JOHN J. MINGO, Senior Research Division Officer ALLEN L. RAIKEN, Associate General Counsel ELEANOR J. STOCKWELL, Senior Research Division CHARLES R. MCNEILL, Assistant to the General Officer Counsel JAMES R. WETZEL, Senior Research Division Officer JAMES M. BRUNDY, Associate Research Division Officer OFFICE OF THE SECRETARY ROBERT A. EISENBEIS, Associate Research Division Officer THEODORE E. ALLISON, Secretary JARED J. ENZLER, Associate Research Division GRIFFITH L. GARWOOD, Deputy Secretary Officer *JOHN M. WALLACE, Assistant Secretary J. CORTLAND G. PERET, Associate Research RICHARD H. PUCKETT, Manager, Regulatory Division Officer Improvement Project MICHAEL J. PRELL, Associate Research Division Officer HELMUT F. WENDEL, Associate Research Division DIVISION OF CONSUMER AFFAIRS Officer ROBERT M. FISHER, Assistant Research Division Officer JANET O. HART, Director NATHANIEL E. BUTLER, Associate Director FREDERICK M. STRUBLE, Assistant Research Division 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 TFREDERICK C. SCHADRACK, Deputy Director EDWIN M. TRUMAN, Director FREDERICK R. DAHL, Associate Director ROBERT F. GEMMILL, Associate Director WILLIAM W. WILES, Associate Director GEORGE B. HENRY, Associate Director JACK M. EGERTSON, Assistant Director CHARLES J. SIEGMAN, Associate Director DON E. KLINE, Assistant Director SAMUEL PIZER, Senior International Division ROBERT S. PLOTKIN, Assistant Director Officer THOMAS A. SIDMAN, Assistant Director JEFFREY R. SHAFER, Associate International Division SAMUEL H. TALLEY, Assistant Director Officer WILLIAM TAYLOR, Assistant Director DALE W. HENDERSON, Assistant International Division Officer LARRY J. PROMISEL, Assistant International Division *On loan from the Federal Reserve Bank of Atlanta. Officer fOn loan from the Federal Reserve Bank of New York. 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 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 Construction Management DIVISION OF FEDERAL RESERVE JOSEPH W. DANIELS, SR., Director of BANK EXAMINATIONS AND BUDGETS Equal Employment Opportunity ALBERT R. HAMILTON, Director CLYDE H. FARNSWORTH, JR., Associate Director DIVISION OF DATA PROCESSING CHARLES W. BENNETT, Assistant Director JOHN F. HOOVER, Assistant Director CHARLES L. HAMPTON, Director P. D. RING, Assistant Director BRUCE M. BEARDSLEY, Associate Director RAYMOND L. TEED, Assistant Director UYLESS D. BLACK, Assistant Director GLENN L. CUMMINS, Assistant Director ROBERT J. ZEMEL, Assistant Director DIVISION OF FEDERAL RESERVE BANK OPERATIONS DIVISION OF PERSONNEL JAMES R. KUDLINSKI, Director WALTER ALTHAUSEN, Assistant Director DAVID L. SHANNON, Director BRIAN M. CAREY, Assistant Director JOHN R. WEIS, Assistant Director HARRY A. GUINTER, Assistant Director CHARLES W. WOOD, Assistant Director LORIN S. MEEDER, Assistant Director OFFICE OF THE CONTROLLER JOHN KAKALEC, Controller EDWARD T. MULRENIN, Assistant Controller DIVISION OF ADMINISTRATIVE SERVICES WALTER W. KREIMANN, Director JOHN L. GRIZZARD, Assistant Director JOHN D. SMITH, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 Federal Reserve Bulletin • December 1978 FOMC and Advisory Councils FEDERAL OPEN MARKET COMMITTEE G. WILLIAM MILLER, Chairman PAUL A. VOLCKER, Vice Chairman ERNEST T. BAUGHMAN J. CHARLES PARTEE HENRY C. WALLICH PHILIP E. COLDWELL NANCY H. TEETERS MARK H. WILLES DAVID P. EASTBURN 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 PAULUS, 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 84125 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 at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 Federal Reserve Board Publications Available from Publications Services, Division of Ad- request and be made payable to the order of the Board ministrative Services, Board of Governors of the Fed- of Governors of the Federal Reserve System in a form eral Reserve System, Washington, D.C. 20551. Where collectible at par in U.S. currency. (Stamps and a charge is indicated, remittance should accompany coupons are not accepted.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. FUNCTIONS. 1974. 125 pp. 102 pp. $1.00 each; 10 or more to one address, $.85 each. ANNUAL REPORT SURVEY OF CHANGES IN FAMILY FINANCES. 1968. 321 FEDERAL RESERVE BULLETIN. Monthly. $20.00 per pp. $1.00 each; 10 or more to one address, $.85 year or $2.00 each in the United States, its posses- each. sions, Canada, and Mexico; 10 or more of same REPORT OF THE JOINT TREASURY-FEDERAL RESERVE issue to one address, $18.00 per year or $1.75 STUDY OF THE U.S. GOVERNMENT SECURITIES each. Elsewhere, $24.00 per year or $2.50 each. MARKET. 1969. 48 pp. $.25 each; 10 or more to BANKING AND MONETARY STATISTICS, 1914-1941. one address, $.20 each. (Reprint of Part 1 only) 1976. 682 pp. $5.00. JOINT TREASURY-FEDERAL RESERVE STUDY OF THE BANKING AND MONETARY STATISTICS, 1941-1970. GOVERNMENT SECURITIES MARKET: STAFF STUD- 1976. 1,168 pp. $15.00. IES—PART 1. 1970. 86 pp. $.50 each; 10 or more ANNUAL STATISTICAL DIGEST, 1971-75. 1976. 339 pp. to one address, $.40 each. PART 2. 1971. 153 pp. $4.00 per copy for each paid subscription to Fed- and PART 3. 1973. 131 pp. Each volume $1.00; eral Reserve Bulletin. All others, $5.00 each. 10 or more to one address, $.85 each. ANNUAL STATISTICAL DIGEST, 1972-76. 1977. 388 pp. OPEN MARKET POLICIES AND OPERATING PROCE- $10.00 per copy. DURES—STAFF STUDIES. 1971. 218 pp. $2.00 ANNUAL STATISTICAL DIGEST, 1973-77. 1978. 361 pp. each; 10 or more to one address, $1.75 each. $12.00 per copy. REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT FEDERAL RESERVE CHART BOOK. Issued four times a MECHANISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. year in February, May, August, and November 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; Subscription includes one issue of Historical Chart 10 or more to one address, $2.50 each. Book. $7.00 per year or $2.00 each in the United THE ECONOMETRICS OF PRICE DETERMINATION CON- States, its possessions, Canada, and Mexico. Else- FERENCE, October 30-31, 1970, Washington, D.C. where, $10.00 per year or $3.00 each. 1972. 397 pp. Cloth ed. $5.00 each; 10 or more HISTORICAL CHART BOOK. Issued annually in Sept. to one address, $4.50 each. Paper ed. $4.00 each; Subscription to Chart Book includes one issue. 10 or more to one address, $3.60 each. $1.25 each in the United States, its possessions, FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE Canada, and Mexico; 10 or more to one address, FLUCTUATIONS IN HOUSING CONSTRUCTION . $1.00 each. Elsewhere, $1.50 each. 1972. 487 pp. $4.00 each; 10 or more to one CAPITAL MARKET DEVELOPMENTS. Weekly. $15.00 per address, $3.60 each. year or $.40 each in the United States, its posses- LENDING FUNCTIONS OF THE FEDERAL RESERVE sions, Canada, and Mexico; 10 or more of same BANKS. 1973. 271 pp. $3.50 each; 10 or more issue to one address, $13.50 per year or $.35 each. to one address, $3.00 each. Elsewhere, $20.00 per year or $.50 each. IMPROVING THE MONETARY AGGREGATES (Report of the SELECTED INTEREST AND EXCHANGE RATES—WEEKLY Advisory Committee on Monetary Statistics). SERIES OF CHARTS. Weekly. $15.00 per year or 1976. 43 pp. $1.00 each; 10 or more to one $.40 each in the United States, its possessions, address, $.85 each. Canada, and Mexico; 10 or more of same issue ANNUAL PERCENTAGE RATE TABLES (Truth in Lendto one address, $13.50 per year or $.35 each. ing—Regulation Z) Vol. I (Regular Transactions). Elsewhere, $20.00 per year or $.50 each. 1969. 100 pp. Vol. II (Irregular Transactions). THE FEDERAL RESERVE ACT, as amended through De- 1969. 116 pp. Each volume $1.00, 10 or more cember 1976, with an appendix containing provi- of same volume to one address, $.85 each. sions of certain other statutes affecting the Federal FEDERAL RESERVE MEASURES OF CAPACITY AND CA- Reserve System. 307 pp. $2.50. PACITY UTILIZATION. 1978. 40 pp. $1.75 each, REGULATIONS OF THE BOARD OF GOVERNORS OF THE 10 or more to one address, $1.50. each. FEDERAL RESERVE SYSTEM THE BANK HOLDING COMPANY MOVEMENT TO 1978: PUBLISHED INTERPRETATIONS OF THE BOARD OF GOV- A COMPENDIUM. 1978. 289 pp. $2.50 each, 10 ERNORS, as of June 30, 1977. $7.50. or more to one address, $2.25 each. INDUSTRIAL PRODUCTION—1976 EDITION. 1977. 304 IMPROVING THE MONETARY AGGREGATES: STAFF pp. $4.50 each; 10 or more to one address, $4.00 PAPERS. 1978. 170 pp. $4.00 each, 10 or more each. to one address, $3.75 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.) CONSUMER HANDBOOK TO CREDIT PROTECTION LAWS MEASURES OF SECURITY CREDIT. 12/70. THE EQUAL CREDIT OPPORTUNITY ACT AND . . . AGE REVISION OF BANK CREDIT SERIES. 12/71. THE EQUAL CREDIT OPPORTUNITY ACT AND . . . ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF CREDIT RIGHTS IN HOUSING U.S. BANKS. 2/72. THE EQUAL CREDIT OPPORTUNITY ACT AND . . . BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER— DOCTORS, LAWYERS, SMALL RETAILERS, AND REVISED SERIES. 7/72. OTHERS WHO MAY PROVIDE INCIDENTAL CREDIT YIELDS ON NEWLY ISSUED CORPORATE BONDS. 9/72. THE EQUAL CREDIT OPPORTUNITY ACT AND . RECENT ACTIVITIES OF FOREIGN BRANCHES OF U.S. WOMEN BANKS. 10/72. FAIR CREDIT BILLING REVISION OF CONSUMER CREDIT STATISTICS. 10/72. A GUIDE TO FEDERAL RESERVE REGULATIONS ONE-BANK HOLDING COMPANIES BEFORE THE 1970 How TO FILE A CONSUMER CREDIT COMPLAINT AMENDMENTS. 12/72. IF YOU BORROW TO BUY STOCK YIELDS ON RECENTLY OFFERED CORPORATE BONDS. IF YOU USE A CREDIT CARD 5/73. TRUTH IN LEASING RATES ON CONSUMER INSTALMENT LOANS. 9/73. U.S. CURRENCY NEW SERIES FOR LARGE MANUFACTURING CORPORA- TIONS. 10/73. WHAT TRUTH IN LENDING MEANS TO YOU U.S. ENERGY SUPPLIES AND USES, Staff Economic STAFF ECONOMIC STUDIES 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 STRUCTURE AND PERFORMANCE STUDIES IN BANKING: Douglas Battenberg, Jared J. Enzler, and Arthur A SUMMARY AND EVALUATION, by Stephen A. M. Havenner. 11/75. Rhoades. Dec. 1977. 45 pp. AN ASSESSMENT OF BANK HOLDING COMPANIES, Staff AN ANALYSIS OF FEDERAL RESERVE ATTRITION SINCE Economic Study by Robert J. Lawrence and Sam- 1960, by John T. Rose. Jan. 1978. 44 pp. uel H. Talley. 1/76. PROBLEMS IN APPLYING DISCRIMINANT ANALYSIS IN INDUSTRIAL ELECTRIC POWER USE. 1/76. CREDIT SCORING MODELS, by Robert A. Eisenbeis. REVISION OF MONEY STOCK MEASURES. 2/76. Jan. 1978. 28 pp. SURVEY OF FINANCE COMPANIES, 1975. 3/76. EXTERNAL CAPITAL FINANCING REQUIREMENTS OF REVISED SERIES FOR MEMBER BANK DEPOSITS AND COMMERCIAL BANKS: 1977-81, by Gerald A. Han- AGGREGATE RESERVES. 4/76. weck and John J. Mingo. Feb. 1978. 34 pp. INDUSTRIAL PRODUCTION—1976 Revision. 6/76. MORTGAGE BORROWING AGAINST EQUITY IN EXISTING FEDERAL RESERVE OPERATIONS IN PAYMENT MECHA- HOMES: MEASUREMENT, GENERATION, AND IM- NISMS: A SUMMARY. 6/76. PLICATIONS FOR ECONOMIC ACTIVITY, by David F. RECENT GROWTH IN ACTIVITIES OF U.S. OFFICES OF Seiders. May 1978. 42 pp. BANKS. 10/76. THE BEHAVIOR OF MEMBER BANK REQUIRED RESERVE NEW ESTIMATES OF CAPACITY UTILIZATION: MANU- RATIOS AND THE EFFECTS OF BOARD ACTION, FACTURING AND MATERIALS. 11/76. 1968-77, by Thomas D. Simpson. July 1978. 39 BANK HOLDING COMPANY FINANCIAL DEVELOPMENTS pp. IN 1976. 4/77. FOOTHOLD ACQUISITIONS AND BANK MARKET STRUC- SURVEY OF TERMS OF BANK LENDING—NEW SERIES. TURE, by Stephen A. Rhoades and Paul Schweit- 5/77. zer, July 1978. 8 pp. THE COMMERCIAL PAPER MARKET. 6/77. INTEREST RATE CEILINGS AND DISINTERMEDIATION, by CONSUMPTION AND FIXED INVESTMENT IN THE ECO- Edward F. McKelvey. Sept. 1978. 105 pp. NOMIC RECOVERY ABROAD. 10/77. RECENT DEVELOPMENTS IN U.S. INTERNATIONAL THE RELATIONSHIP BETWEEN RESERVE RATIOS AND TRANSACTIONS. 4/78. THE MONETARY AGGREGATES UNDER RESERVES THE FEDERAL BUDGET IN THE 1970'S. 9/78. AND FEDERAL FUNDS RATE OPERATING TARGETS, by Kenneth J. Kopecky. Dec. 1978. 58 pp. 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 4'Reprints." MERCIAL BANKS, JULY 1978. 11/78. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 76 Federal Reserve Bulletin • December 1978 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PUBLIC PERIODIC RELEASES BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM DATE OR PERIOD APPROXIMATE TO WHICH DATA WEEKLY RELEASES RELEASE DAY REFER Aggregate Reserves and Member Bank Deposits 502 (H.3) Tuesday Week ended previous Wednesday Applications and Reports Received or Acted on and All Other Actions Friday Week ended previous of the Board 501 (H.2) Saturday Assets and Liabilities of All Commercial Banks in the United Wednesday Wednesday, 2 weeks States 510 (H.8) earlier Tuesday Week ended previous Changes in State Member Banks 615 (K.3) Saturday Wednesday Wednesday, 1 week Commercial and Industrial Loans Outstanding by Industry 514 (H.12)2 earlier Wednesday Week ended 3 Wed- Deposits, Reserves, and Borrowings of Member Banks 509 (H.7) nesdays earlier Factors Affecting Bank Reserves and Condition Statement of Federal Thursday Week ended previous Reserve Banks 503 (H.4.1) Wednesday Monday Week ended previous Foreign Exchange Rates 512 (H.10) Friday Thursday Week ended Wednes- Money Stock Measures 508 (H.6) day of previous week Friday Week ended Wednes- Reserve Positions of Major Reserve City Banks 507 (H.5) day of previous week Monday Week ended previous Selected Interest Rates and Bond Prices 519 (H.15) Saturday Weekly Condition Report of Large Commercial Banks in New York Thursday Previous Wednesday and Chicago 506 (H.4.3) Weekly Condition Report of Large Commercial Banks and Domestic Wednesday Wednesday, 1 week Subsidiaries 504 (H.4.2)3 earlier Weekly Summary of Banking and Credit Measures 511 (H.9) Thursday Week ended previous Wednesday; and week ended Wednesday of previous week SEMIMONTHLY RELEASE Research Library—Recent Acquisitions 601 (J.2) 1st and 16th Period since last release of month MONTHLY RELEASES Assets and Liabilities of all Member Banks, by Districts 408 (G.7.1) 14th of month Last Wednesday of previous month Automobile Credit 428 (G.26) 6th working day 2nd month previous of month 1 Release dates are those anticipated or usually met. However, it should be noted that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. 2 On second Wednesday of month, contains monthly data release. 3 Contains revised H.4.3 data. NOTE.—The Board's official mailing list is being computerized, and new three-digit identification codes have been assigned to each individual release. The new code, as well as the current symbol, will be used for several months; thereafter, only the new code will appear. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 77 MONTHLY RELEASES (cont.) DATE OR PERIOD APPROXIMATE TO WHICH DATA RELEASE DAY REFER Capacity Utilization: Manufacturing and Materials 402 (G.3) 17th of month Previous month Changes in Status of Banks and Branches 404 (G.4.5) 25th of month Previous month Consumer Instalment Credit 421 (G.19) 3rd working 2nd month previous day of month Debits and Deposit Turnover at Commercial Banks 406 (G.6) 25th of month Previous month Federal Reserve System Memorandum on Exchange Charges 628 (K. 14) 5th of month Period since last release Finance Companies 422 (G.20) 5th working 2nd month previous day of month Foreign Exchange Rates 405 (G.5) 1st of month Previous month Industrial Production 414 (G.12.3) 15th of month Previous month Interest Rates on Selected Consumer Instalment Loans at Reporting 15th of month 2nd month previous Commercial Banks 411 (G.10) Loan Commitments at Selected Large Commercial Banks 423 (G.21) 20th of month 2nd month previous Maturity Distribution of Outstanding Negotiable Time Certificates of 24th of month Last Wednesday of Deposit 410 (G.9) previous month Monthly Report of Condition for U.S. Agencies, Branches, and Domestic 15th of month 2nd month previous Banking Subsidiaries of Foreign Banks 412 (G.ll) Selected Interest Rates and Bond Prices 415 (G.13) 6th of month Previous month Summary of Equity Security Transactions 418 (G.16) Last week of Release date month Monthly Supplement to Survey of Terms of Bank Lending 416 15th of month 3rd month previous (G. 14) QUARTERLY RELEASES Finance Rates and Other Terms on Selected Types of Consumer 25th of January, 2nd month previous Instalment Credit Extended by Major Finance Companies 120 (E. 10) April, July, October Flow of Funds: Seasonally adjusted and unadjusted 780 (Z.l) 15th of Febru- Previous quarter ary, May, August, November Geographical Distribution of Assets and Liabilities of Major Foreign 15th of Previous quarter Branches of U.S. Banks 121 (E.ll) March, June, September, December Sales Revenue, Profits, and Dividends of Large Manufacturing Corpo- 10th of March 2nd quarter previous rations 116 (E.6) July, September, December SEMIANNUAL RELEASES Assets and Liabilities of Commercial Banks, by Class of Bank May and No- End of previous De- 113 (E.3.4) vember cember and June Check Collection Services—Federal Reserve System 119 (E.9) February Previous 6 and July months Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 Federal Reserve Bulletin • December 1978 SEMIANNUAL RELEASES (cont.) DATE OR PERIOD APPROXIMATE TO WHICH DATA RELEASE DAY REFER List of OTC Margin Stocks 117 (E.7) June 30, De- Release date cember 31 Assets, Liabilities, and Capital Accounts of Commercial and Mutual May and No- End of previous De- Savings Banks—Reports of Call (Joint Release of the Federal vember cember and June Deposit Insurance Corp., the Board of Governors of the Federal Reserve System, and Office of the Comptroller of the Currency. Published and distributed by FDIC.) ANNUAL RELEASES Aggregate Summaries of Annual Surveys of Security Credit Extension February End of previous June 101 (C.2) Insured Bank Income by Size of Bank 103 (C.4) End of May Previous year State Member Banks of Federal Reserve System and Nonmember 1st quarter of End of previous year Banks that Maintain Clearing Accounts with Federal Reserve year Banks 403 (G.4) (Supplements issued monthly) 15th of month Previous month Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

79 Index to Statistical Tables References are to pages A-3 through A-69 although the prefix "A" is omitted in this index ACCEPTANCES, bankers, 11, 25, 27 Demand deposits: Agricultural loans, commercial banks, 18, 20-22, 26 Adjusted, commercial banks, 13, 15, 19 Assets and liabilities (See also Foreigners): Banks, by classes, 16, 17, 19, 20-23 Banks, by classes, 16, 17, 18, 20-23, 29 Ownership by individuals, partnerships, and Domestic finance companies, 39 corporations, 25 Federal Reserve Banks, 12 Subject to reserve requirements, 15 Nonfinancial corporations, current, 38 Turnover, 13 Automobiles: Deposits (See also specific types of deposits): Consumer instalment credit, 42, 43 Banks, by classes, 3, 16, 17, 19, 20-23, 29 Production, 48, 49 Federal Reserve Banks, 4, 12 Subject to reserve requirements, 15 BANKERS balances, 16, 18, 20, 21, 22 Turnover, 13 (See also Foreigners) Discount rates at F.R. Banks (See Interest rates) Banks for cooperatives, 35 Discounts and advances by F.R. Banks (See Loans) Bonds (See also U.S. Govt, securities): Dividends, corporate, 37, 69 New issues, 36 Yields, 3 EMPLOYMENT, 46, 47 Branch banks: Euro-dollars, 27 Assets and liabilities of foreign branches of U.S. banks, 56 FARM mortgage loans, 41 Liabilities of U.S. banks to their foreign Farmers Home Administration, 41 branches, 23 Federal agency obligations, 4, 11, 12, 13, 34 Business activity, 46 Federal and Federally sponsored credit agencies, 35 Business expenditures on new plant and Federal finance: equipment, 38 Debt subject to statutory limitation and Business loans (See Commercial and industrial types and ownership of gross debt, 32 loans) Receipts and outlays, 30, 31 Treasury operating balance, 30 CAPACITY utilization, 46 Federal Financing Bank, 30, 35 Capital accounts: Federal funds, 3, 6, 18, 20, 21, 22, 27, 30 Banks, by classes, 16, 17, 19, 20 Federal home loan banks, 35 Federal Reserve Banks, 12 Federal Home Loan Mortgage Corp., 35, 40, 41 Central banks, 68 Federal Housing Administration, 35, 40, 41 Certificates of deposit, 23, 27 Federal intermediate credit banks, 35 Commercial and industrial loans: Federal land banks, 35, 41 Commercial banks, 15, 18, 23, 26 Federal National Mortgage Assn., 35, 40, 41 Weekly reporting banks, 20, 21, 22, 23, 24 Federal Reserve Banks: Commercial banks: Condition statement, 12 Assets and liabilities, 3, 15-19, 20-23 Discount rates (See Interest rates) Business loans, 26 U.S. Govt, securities held, 4, 12, 13, 32, 33 Commercial and industrial loans, 24, 26 Federal Reserve credit, 4, 5, 12, 13 Consumer loans held, by type, 42, 43 Federal Reserve notes, 12 Loans sold outright, 23 Federally sponsored credit agencies, 35 Number, by classes, 16, 17, 19 Finance companies: Real estate mortgages held, by type of holder and Assets and liabilities, 39 property, 41 Business credit, 39 Commercial paper, 3, 24, 25, 27, 39 Loans, 20, 21, 22, 42, 43 Condition statements (See Assets and liabilities) Paper, 25, 27 Construction, 46, 50 Financial institutions, loans to, 18, 20-22 Consumer instalment credit, 42, 43 Float, 4 Consumer prices, 46, 51 Flow of funds, 44, 45 Consumption expenditures, 52, 53 Foreign: Corporations: Currency operations, 12 Profits, taxes, and dividends, 37 Deposits in U.S. banks, 4, 12, 19, 20, 21, 22 Sales, revenue, profits, and dividends of large Exchange rates, 68 manufacturing corporations, 69 Trade, 55 Security issues, 36, 65 Foreigners: Cost of living (See Consumer prices) Claims on, 60, 61, 66, 67 Credit unions, 29, 42, 43 Liabilities to, 23, 56-59, 64-67 Currency and coin, 5, 16, 18 Currency in circulation, 4, 14 GOLD: Customer credit, stock market, 28 Certificates, 12 Stock, 4, 55 DEBITS to deposit accounts, 13 Government National Mortgage Assn., 35, 40, 41 Debt (See specific types of debt or securities) Gross national product, 52, 53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 80 Federal Reserve Bulletin • December 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 SALES, revenue, profits, and dividends Time and savings deposits, maximum rates, 10 of large manufacturing corporations, 69 International capital transactions of the United Saving: States, 56-67 Flow of funds, 44, 45 International organizations, 56-61, 64-67 National income accounts, 53 Inventories, 52 Savings and loan assns., 3, 10, 29, 33, 4l, 44 Investment companies, issues and assets, 37 Savings deposits (See Time deposits) Investments (See also specific types of investments): Savings institutions, selected assets, 29 Banks, by classes, 16, 17, 18, 20, 21, 22, 29 Securities (See also U.S. Govt, securities): Commercial banks, 3, 15, 16, 17, 18 Federal and Federally sponsored agencies, 35 Federal Reserve Banks, 12, 13 Foreign transactions, 65 Life insurance companies, 29 New issues, 36 Savings and loan assns., 29 Prices, 28 Special Drawing Rights, 4, 12, 54, 55 LABOR force, 47 State and local govts.: Life insurance companies (See Insurance Deposits, 19, 20, 21, 22 companies) Holdings of U.S. Govt, securities, 32, 33 Loans (See also specific types of loans): New security issues, 36 Banks, by classes, 16, 17, 18, 20-23, 29 Ownership of securities of, 18, 20, 21, 22, 29 Commercial banks, 3, 15-18, 20-23, 24, 26 Yields of securities, 3 Federal Reserve Banks, 3, 4, 5, 8, 12, 13 State member banks, 17 Insurance companies, 29, 41 Stock market, 28 Insured or guaranteed by U.S., 40, 41 Stocks (See also Securities): Savings and loan assns., 29 New issues, 36 Prices, 28 MANUFACTURING: Capacity utilization, 46 TAX receipts, Federal, 31 Production, 46, 49 Time deposits, 3, 10, 13, 15, 16, 17, 19, 20, 21, Margin requirements, 10 22, 23 Member banks: Trade, foreign, 55 Assets and liabilities, by classes, 16, 17, 18 Treasury currency, Treasury cash, 4 Borrowings at Federal Reserve Banks, 5, 12 Treasury deposits, 4, 12, 30 Number, by classes, 16, 17, 19 Treasury operating balance, 30 Reserve position, basic, 6 Reserve requirements, 9 UNEMPLOYMENT, 47 Reserves and related items, 3, 4, 5, 15 U.S. balance of payments, 54 Mining production, 49 U.S. Govt, balances: Mobile home shipments, 50 Commercial bank holdings, 19, 20, 21, 22 Monetary aggregates, 3, 15 Member bank holdings, 15 Money and capital market rates (See Interest Treasury deposits at Reserve Banks, 4, 12, 30 rates) U.S. Govt, securities: Money stock measures and components, 3, 14 Bank holdings, 16, 17, 18, 20, 21, 22, 29, Mortgages (See Real estate loans) 32, 33 Mutual funds (See Investment companies) Dealer transactions, positions, and financing, 34 Mutual savings banks, 3, 10, 20-22, 29, 32, 33, 41 Federal Reserve Bank holdings, 4, 12, 13, 32, 33 Foreign and international holdings and NATIONAL banks, 17, 19 transactions, 12, 32, 64 National defense outlays, 31 Open market transactions, 11 National income, 52 Outstanding, by type of security, 32, 33 Nonmember banks, 17, 18, 19 Ownership, 32, 33 Rates in money and capital markets, 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, 69 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 81 Index to Volume 64 GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES Other ("A " pages) Other C'A pages) Text Text etc. Index to etc. Index to Issue total Total tables Issue total Total tables January 1-66 1-78 76-77 July 521-614 1-78 76-77 February 67-152 1-78 76-77 August 615-700 1-78 76-77 March 153-254 1-78 76-77 September.. 701-782 1-78 76-77 April 255-344 1-78 76-77 October ... 783-828 1-78 76-77 May , .. . 345-430 1-78 76-77 November.. 829-926 1-78 76-77 June 431-520 1-82 79-80 December . 927-998 1-92 79-80 (References to "A" pages in this index are to such pages in the December issue.) Pages Pages ACCEPTANCES, bankers, interpretation of BANK holding companies (For orders issued to Regulation A 427, 486 individual companies under the Bank Holding Adlum, Merle D., appointed director, Seattle Company Act, see Bank Holding Company Branch 245 Act): Altmann, Murray, appointed Secretary, Federal Community Reinvestment Act, interagency reg- Open Market Committee 779 ulations implementing, and examination Anderson, Donald E., appointed Director, Division procedures 145, 611, 821,989 of Support Services 826 Competition in Banking Act of 1977, Annual Report, 1977 519 statement 179 Annual Statistical Digest, 1973-1977 994 Delegation by Board of certain authority regard- Anthony, Christine H., appointed director, Okla- ing, amendment of rules 112 homa City Branch 241 Improper payments by, joint policy statement of Articles: Federal bank regulatory agencies 61, 146 Consumer rights under Equal Credit Opportunity Publication 922 and Fair Credit Billing Acts, exercise 363 Regulation Y (See Regulations and rules, Board Corporate finance, recent developments 431 of Governors) Corporations, nonfinancial, new series on work- Rules of Procedure, amendment to revise proceing capital 533 dures relating to 881 Dollar's foreign exchange value 783 Staff economic study 532 Economic expansion in 1977 1 Tax transactions between State member banks EFT and privacy 279 and their parent holding companies, Board Federal budget in 1970's 701 policy statement 519, 825 Financial developments, quarterly reports to Bank Holding Company Act: Congress (See Statements to Congress) Orders issued: Household borrowing in recovery 153 ACORN FINANCIAL CORP 307 Inflation, recent behavior 521 Alabama Bancorporation 963 Insured commercial bank income in 1977 441 Allied Bancshares, Inc 912 Monetary policy and open market operations in American Bancor, Ltd 673 1977 265 Ames Holding Company, Ltd 332 Nonbank thrift institutions in 1977 and 1978.. 927 Ancorp Bancshares, Inc 220 Repurchase agreements and Federal funds 353 B-O-B Financial Corporation 227 Time and savings deposits at commercial banks, Banco Nacional de Mexico, S.A., Mexico surveys 76, 367, 623, 837 City, Mexico; and Banamex Holding Com- Treasury and Federal Reserve foreign exchange pany and Ammex Holding Company, Los operations, reports 161, 448, 717, 939 Angeles, Calif 488 U.S. international transactions, recent develop- BancOhio Corporation 421 ments 255 Bank Land Company 771 Assets and liabilities of overseas branches of Bank of Montana System 420 member banks, data from year-end reports of Bankshares of Nebraska, Inc 409 condition 516 Barnett Banks of Florida, Inc 910 Atkinson, Sherry S., article 927 Bates County Bancshares, Inc 817 Austin, James R., appointed director, Nashville Bellevue Holding Corporation, Geneva, Swit- Branch 235 zerland 802 Axilrod, Stephen H., designated Staff Director for BYRON BANCSHARES, INC 817 Monetary and Financial Policy 923 Calcon Bancshares, Inc 308 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 Federal Reserve Bulletin • December 1978 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Capitol Bancorporation 771 First Gridley BanCorporation, Inc 420 Central Bancshares of the South, First Hays Bancshares, Inc 694 Inc 42, 603, 674 First International Bancshares, Inc 116, 403 Central National Bancshares, Inc 113, 675 First Kansas Bancorp 771 Central National Corporation 420, 899 First Missouri Banks, Inc 118, 421 Centran Corporation, Inc 333 First National Bank Shares, Ltd 311 Charter Techny Bancorporation, Inc 114 First National Boston Corporation 678 Chemical Financial Corporation 512 First National Corporation 56 Chemical New York Corporation 136,333, First National Financial Corporation 119 495, 496, 513 First National Holding Corp 971, 972 Chevalier, Inc 572 First National Schaumburg Corporation 141 Citicorp 321 First Railroad & Banking Company of Citizens and Southern Corporation 772 Georgia 973 Citizens and Southern Holding First Security Corporation 511, 910 Company 766, 772 First Steuben Bancorp, Inc 421, 809 Citizens Bancorporation 142 First Texas Bancorp, Inc 987 Citizens Bancshares, Inc 910 First Thomas Ban Corp 489 Citizens Bankshares, Inc 757 First Union Bancorporation 411 Citizens State Banco 56 First Virginia Banks, Inc 818 City Bancshares, Inc 573 Florida National Banks of Florida, Inc 911 Coffeyville Financial Corporation 332 Forest City Limited 771 Combanks Corporation 574 Franklin Bancgroup & Co 511 Commerce Bancshares, Inc 576, 758, 803 Fulton National Corporation 121 Commerce Companies, Inc 603 Galveston County Bancshares, Inc 694 Commercial Bankshares, Inc 883 Georgia Bancshares, Inc 974 Commercial National Corporation 494 Gering National Company 690 Community Bancorporation 603 Glen Rose Bancshares, Inc 585 Community Banks, Inc 142 Gordon Financial Corporation 986 Community State Agency, Inc 692 Grady Holding Company 603 Dakota Bankshares, Inc 310, 676 Great Southwest Ban Corp, Inc 586 Delta Bancshares Company 142 Gretna Company 313 Depositors Trust Company 213 Guaranty Corporation 817 DETROITBANK Corporation 805 HaleCo BancShares, Inc 695 Dexter Banking Company 28 Harrison Bancorporation 603 Duclarkee, Inc : 806 Harrogate Corporation 771 EICHER BANCORPORATION 399 Hawarden Bancshares, Inc 332 El Paso Bancshares, Inc 694 Hawkeye Bancorporation 315, 512, 694, 974 Ellis Banking Corporation 400, 884 Heaton Bank Holding Company 124 Empire Bancorp, Inc 512 Herget Financial Corp 817 Equitable Bancorporation 497 Holladay Bancorporation 759 Everest Bancshares, Inc 511 Hunter Holding Co 976 Ewing Agency, Inc 583 Illini Bancorp, Inc 679 Exchange Bancorporation, Inc 817 Illinois Neighborhood Development Corpora- F & M National Corporation 512 tion 45 Fidelity American Indian Head Banks, Inc 771 Bankshares 899 Jacobus Company 126 Fidelity Union Bancorporation 512 JEFCO, Inc 490 Financial Bancshares, Inc 227 Johnson County Bankshares, Inc 902 First Affiliated Bancorporation, Inc 333 John-Wade Co 977 First Agency of Hastings, Inc 332 Joy Development Corporation 886 First Alabama Bancshares, Inc 115, 770 Junction City First National First American Bank Company 56 Corporation 818 Kansas City Bancshares, Inc 31 First Amtenn Corporation 43 Kenco Bancshares, Inc 588 First and Merchants Corporation 695 Keystone Bancshares, Inc 979 First Arkansas Bankstock Kremmling Holding Company 142 Corporation 325, 964 Kyowa Bank, Ltd., Tokyo, Japan 492 First Banc Group of Ohio, Inc 807, 808 Loomis Company 911 First Bancgroup—Alabama Inc 603 Madison National Company 332 First Bancorp, Inc 328, 420 Manchester Financial Corp 32 First Bancorp of N.H., Inc 817, 967 Mankato Bankshares, Inc 760 First Bank Holding Company 694 Manufacturers Hanover Corporation 499 First Bank System, Inc 29 Marine Corporation 50 First Chandler Corp 771 Marshall & Ilsley First City Bancorporation of Texas, Corporation 911 Inc 326, 327, 402, 511, 969 Memphis Bancshares, Inc 142 First Colonial Corporation 141 Mercantile Bancorporation, Inc 412, 680 First Commerce Corporation 509 Mercantile Texas Corporation 762 First Corporation 771, 772 Michigan National Corporation 127, 316 FIRST EVERGREEN CORPORATION 771 Mid-America Bancshares, Inc 603 First Financial Bancshares, Inc 227 Midland Capital Co 512 First Formoso, Inc 584 Mid-Nebraska Bancshares, Inc 589 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 64 A 83 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Midwest Bancorp, Inc 317 Texas Commerce Bancshares, Inc 320, 812 Mizrahi Holdings Association and United Texas Panhandle Bancshares, Inc 911 Mizrahi Bank, Ltd., Tel Aviv, Israel 319 Tracy Bancorp 51 Moline Manufacturing Company 764 Tri County Investment Co 512 Mountain Financial Services, Inc 911 Triro Bancorporation, Inc 688 Muyskens Corporation 695 Trust Company of Georgia, Trust Company NCNB Corporation 504, 506, 904 Bank, and Trust Company of Georgia As- National Bancshares Corporation of sociates 333 Texas 332, 493, 887, 911 Tulbancorp, Inc 894 National Detroit Corporation 227, 763, 984 Union Bancgroup & Co ... 512 New Hampton Bancshares, Inc 682 United Bancorp 222 New Virginia Bancorporation 987 United Bank Corporation of New York 894 Northwest Arkansas Bancshares, Inc 217 United Banks of Colorado, Inc 37 Northwest Bancorporation 911 United Michigan Corporation 421 Northwest Ohio Bancshares, Inc 332 United Missouri Bancshares, Inc 39, 415 Oakland Financial Services, Inc 695 Viking Corporation 407 Oklahoma National Bancshares, Inc 987 Walter E. Heller International Corporation.. 329 Old Capitol Bancorporation, Inc 141 Weatherford Bancshares, Inc 689 Old Stone Corporation 906, 911 Wedge Holding Company 408 Omaha National Corporation 414 Weld State Company 224 Orbanco, Inc 46, 594 West Point Bancorp, Inc 227 Otto Bremer Company 980 Western Banks of Wyoming, Inc 332 Otto Bremer Foundation and Otto Bremer WINGO, LTD 142 Company 683 WISCUB, Inc 40 Overland Park Bancshares, Inc 593 Woodford Investment Company 695 PDB Investment Corporation 603 Rules of Procedure, amendment to revise proce- Pacesetter Financial Corporation 35, 513 dures for certain applications under 881 Palatine Bancorporation, Inc 332 Bank Holding Company Tax Act of 1976: Parish National Corporation 36 Certifications issued: Pecatonica Bancshares, Inc 817 Brantley Company, Inc 417 People's Corporation 814 Evans Insurance Agency, Inc 597 Phelps County Bancshares, Inc 695 GATX Corporation (formerly General Ameri- Philadelphia National Corporation 508 can Transportation Corporation) 226 Pioneer Bancorporation, Inc 890 Industrial National Corporation 330 Pittsburg Bancshares, Inc 227 Investment Corporation of America 985 Platte County Bancshares, Inc 684 King Ranch, Inc 138 Polk County Banco, Inc 603 Kyanite Mining Corporation 598 Quail Creek Bancshares, Inc 986 Lindoe, Inc 600 Republic Bancorporation, Inc 685 Republic of Texas Corporation 139 Republic National Bancshares, Inc 897 Schnitzler Corporation 600 Republic of Texas Corporation ... 133, 332,591, Serco Investment Company 510, 768 595, 603, 686, 911, 981 304 Corporation 602 Retirement Research Foundation 891 Time Holdings, Inc 54, 768 Royal Trust Company, Montreal, Quebec, Tracy Bancorp 55 Canada 404 Trans-Western Corp 693 Royal Trustco Limited, Ottawa, Ontario, UniCapital Corporation 419, 694 Canada; and Royal Trust Bank Corp., University Bancorp, Inc 815 Miami, Fla 332 Voyageur Development Corporation 769 Ruth Jones Nelson Finance Corp 987 Bank market structure, staff economic study 532 SBT Corporation 332 Bank Merger Act: St. Joseph Bancshares, Inc 817 Orders issued: San Bancorp 141 Apple Capital Bank, Mount Jackson, Va 513 Santa Fe Trail Banc Shares, Inc 512 Bank of Mid-Jersey, Bordentown Township, Schroders Limited, London, England 48 N.J 333 2nd Charter Financial Corporation 134 Bank of Utah, Ogden, Utah 817 Security Bancorp 405 Bank of Virginia-Richmond, Richmond, Va... 912 Security Bancshares, Inc 892 Connecticut Bank and Trust Co., Hartford, Security Pacific Corporation 333 Conn 987 Shawnee Bank Shares, Inc 603 Conway Trust Company, Conway, N.H 772 Sibley Bancorporation 911 F.B.G. Bank of Mount Sterling, Mount Ster- Snowmass Bancorp, Inc 332 ling, Ohio 817 Southwest Bancshares, Inc 818 First State Bank of Miami, Miami, Fla 912 State Bancshares, Inc 811 First Virginia Bank-Eastern, Warrenton, Fau- Stepp, Inc 223 quier County, Va 817 Stratton Agency, Inc 603 Hamilton Bank and Trust Company, Bailey's Strawn Bancshares, Inc 695 Crossroads, Va 333 Suburban Bancorporation 142 Hillsboro Bank and Savings Co., Hillsboro, Sueco, Inc 218 Ohio 52 Summit Home Insurance Company 767 Metropolitan Bank and Trust Company, Tayco Corporation 135 Tampa, Fla 421 Tennessee Homestead Company 34 Southern Bank and Trust Company, Rich- Texas American Bancshares, Inc 982 mond, Va 513, 817 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 84 Federal Reserve Bulletin • December 1978 Pages Pages Bank stock loans, statement on survey 285 Board of Governors—Continued Bank supervision and regulation (Federal): Regulations and rules (See Regulations and Banking system, statements on condition 458 rules) Community Reinvestment Act, interagency reg- Seasonal adjustment techniques, formation of ulations implementing, and examination pro- committee to review 341 cedures 145, 611, 821, 989 Staff changes: Competition in Banking Act of 1977, state- Anderson, Donald E 826 ment 179 Axilrod, Stephen H 923 Condition and income reports, proposed simpli- Bennett, Charles W 923 fication by bank regulatory agencies 825, 994 Brundy, James M 779 Data processing centers, uniform interagency Daniels, Joseph, Sr 149 rating system 922 Ettin, Edward C 994 Equal Credit Opportunity Act and Fair Housing Farnsworth, Clyde H., Jr 428 Act, statement on Board's enforcement 742 Geary, Anne 994 Examination procedure relating to "country Grim wood, Gordon B 612 risk" factors involved in international lending Grizzard, John L 826 by U.S. banks, adoption of uniform inter- Hamilton, Albert R 428 agency system 920 Hawke, John D., Jr 149 Foreign banks, statement to Congress on Inter- Henderson, Dale W 779 national Banking Act of 1978, amendment of Hudson, Milton W 149 Regulation K, and statement of bank regula- Jones, Sidney L 149 tory agencies 538, 963, 989, 990 Kreimann, Walter W 826 Improper payments by banks and bank holding Mannion, Robert E 64 companies, joint policy statement of regula- Matthews, Robert E 149 tory agencies 61, 146 Mead, Thomas E 428 Inside investment information, Board policy Meeder, Lorin S 519 statement on misuse 339 Minehan, Cathy E 149, 519 Rating system for banks, adoption by regulatory Petersen, Neal L 252 agencies of uniform system 426 Prell, Michael J 779 Securities transactions, proposed uniform in- Promisel, Larry J 779 teragency standards 922 Puckett, Richard H 612 Trust assets, revised interagency requirements Raiken, Allen L 64 for reporting 921 Shafer, Jeffrey R 779 Trust departments, adoption of uniform inter- Smith, Ralph W., Jr 779 agency rating system 824 Struble, Frederick M 779 Bankers acceptances, interpretation of Regulation Teed, Raymond L 923 A 427, 486 Tuttle, Baldwin B 64 Banking system, U.S., statement on condition... 458 Wallace, John M 519 Bennett, Charles W., appointed Assistant Director, Staff economic studies (See Staff economic Division of Federal Reserve Bank Examinations studies) and Budgets 923 Statements to Congress (See Statements to Con- Bierer, William E., appointed director, Pittsburgh gress) Branch 232 Statistical reporting to, reduction 518, 698 Board of Governors (See also Federal Reserve Supervision and regulation (See Bank supervi- System): sion and regulation) Bank holding companies, actions concerning Bonds, certain nonconvertible corporate bonds, (See Bank holding companies) amendment of Regulation T 428, 801, 823 Budgets of Reserve Banks, approval 63 Brabec, Edward F., appointed Class C director, Division of Administrative Services, redesig- Chicago 236 nated Division of Support Services, effective Brackett, Pearl C., appointed director, Baltimore Jan. 1, 1979 826 Branch 233 Dollar, joint Treasury-Federal Reserve state- Branch banks: ment on measures to strengthen 917 Federal Reserve: Film on functions of Nation's central bank, Directors (See Directors) availability 779 Vice Presidents in charge A73 Interpretations (See Interpretations) Foreign branches of member banks: Legislation (See Legislation) Assets and liabilities, data from year-end re- Litigation, pending cases .. 57, 143, 228, 334,422, ports of condition 516 514, 604, 695, 772, 818, 912, 988 Reserve requirement on foreign borrowings, Meetings open to public, procedures for re- amendment of Regulations D and M 756, 777 questing materials scheduled to be discussed Broida, Arthur L., Secretary, Federal Open Market and recordings of open meetings 63, 780 Committee, retirement 779 Members: Brown, Wilson M., Jr., elected Class A director, Burns, Arthur F., resignation, and designation Philadelphia 231 as Acting Chairman 59, 249 Brundy, James M., appointed Associate Research Gardner, Stephen S., Vice Chairman, death 919 Division Officer, Division of Research and Sta- Jackson, Philip C., Jr., resignation 918 tistics 779 Lilly, David M., resignation 249 Bryan, Merle G., appointed director, Portland Lists 246, 335, 774, 914 Branch 244 Miller, G. William, appointment and desig- Budget, Federal, statements and nation as Chairman 248 article 84, 190, 701 Teeters, Nancy H., appointment 777 Budgets of Reserve- Banks, approval and Members and officers A70 statement on review 63, 90 Publications (See Publications and releases) BULLETIN tables (See Tables) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 64 A 85 Pages Pages Burns, Arthur F.: Credit unions, statement 631 Designation as Acting Chairman, Board of Gov- Currency and coin, statement 453 ernors 249 Resignation as Member, Board of Governors.. 59 DANIELS, Joseph W., Sr., appointed Director of Equal Employment Opportunity 149 CAPACITY and capacity utilization, Davis, Jean McArthur, elected Class B director, publication 148 Atlanta 234 Capital, article on new series on working capital Decio, Arthur J., elected Class B director, of nonfinancial corporations 533 Chicago 236 Capital financing requirements of commercial DeMilner, Lawrence E., article 521 banks, 1977-81, staff economic study 82 Deposits: Chart Book, Federal Reserve 996 Interest rates (See Interest on deposits) Check clearing and collection (See Transfers of Reserve requirements (See Reserve requirefunds) ments) Coldwell, Philip E.: Time and savings, at commercial banks, Banking system, U.S., statement 458 surveys 76, 367, 623, 837 Competition in Banking Act of 1977, Directors: statement 179 Federal Reserve Banks: Federal Reserve System: Actions and responsibilities, amendment 568 Expenditures, review, and 1978 budgets, Chairmen and Federal Reserve Agents.229, A73 statement 90 Class C directors, statement 552 Membership, and issue of pricing for Federal Deputy Chairmen 229, A73 Reserve services, statement 647 List 229 $1 coin, statement 453 Federal Reserve branch banks: Truth in Lending Act, statement 740 Actions and responsibilities, amendment.. 568 Commercial banks (See also Member banks): Chairmen and Deputy Chairmen 229, A73 Capital financing requirements, external, staff List 229 economic study 82 Qualifications, revision of regulations...571, 611 Condition and income reports (See Condition Discount rates at Reserve Banks (See Interest and income reports) rates) Consumer credit survey, 3-year extension and Dividends in 1977: revisions 698 Federal Reserve Banks 63 Foreign banks (See Foreign banks) Insured commercial banks 441 Insured, article on income in 1977 441 Dollar 453, 700, 783, 917, 943 Loans, reduction in statistical reporting to Donegan, Richard O., appointed director, Louis- Board 518 ville Branch 238 Loans and investments, revisions in series 518 Time and savings deposits, surveys 76, 367, EARNINGS and expenses: 623, 837 Condition and income reports (See Condition Condition and income reports: and income reports) Revisions and availability 64, 147, 251 Federal Reserve Banks, 1977 63 Simplification, by bank regulatory Insured commercial banks, 1977, article 441 agencies 825, 994 Economic expansion in 1977, article 1 Consumer Advisory Council 145, 250, 518,697, Economy: 994, All Condition and outlook, and conduct of monetary Consumer credit (See credit) policy, statements .... 185, 190, 373, 543, 548, Corporate finance, article 431 642, 843, 943 Corporations, nonfinancial, article 533 Eisenbeis, Robert A., staff economic study 13 Cousins, Jane C., appointed director, Miami Elberson, Robert E., appointed director, Charlotte Branch 235 Branch 233 Craighead, Rodkey, appointed director, Detroit Electronic funds transfer (EFT) systems (See Branch 237 Transfers of funds) Credit (See also Loans): Employment, statement 377 Brokers and dealers (See Regulations and rules, Equal Credit Opportunity: Board of Governors: T) Act: Consumer: Enforcement, proposed guidelines for, and Advisory Council 145, 250, 518, 697, 994, A72 statement 611, 742 Community Reinvestment Act, regulations Exercise of consumer rights under, article.. 363 implementing 145, 611, 821, 989 Regulation B (See Regulations and rules, Board Equal Credit Opportunity (See Equal Credit of Governors) Opportunity) Erkins, Robert A., appointed director, Salt Lake Fair Credit Billing Act, article 363 City Branch 244 Fair Debt Collection Practices Act 341 Ettin, Edward C., appointed Deputy Staff Director, Housing (See Real estate) Office of Staff Director for Monetary and Finan- Interest rates charged by commercial banks, cial Policy 994 reduction in statistical reporting 518 Euro-dollar borrowings, 756, 777, 917, 962 Leasing (See Leasing) Examinations (See Bank supervision and regulation) Mortgages (See Real estate) Exports, U.S., statement 86 Pamphlets 922, 996 Survey, 3-year extension and revisions 698 FAIR CREDIT BILLING ACT, article 363 Truth in Lending Act (See Truth in Lending) Fair Housing Act, statement 742 Reserve Banks (See Federal Reserve Banks) Farnsworth, Clyde H., Jr., appointed Associate Stocks (See Stock market) Director, Division of Federal Reserve Bank Ex- Credit-scoring models, staff economic study 13 aminations and Budgets 428 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 Federal Reserve Bulletin • December 1978 Pages Pages Federal Advisory Council A72 Foreign currency arrangements 250, 917 Federal budget: Foreign exchange markets, announcement of In 1970's, article 701 Treasury-Federal Reserve joint intervention ... 60 Statements 84, 190 Foreign exchange operations of Treasury and Fed- Federal funds: eral Reserve, reports 161, 448, 717, 939 Article 353 Foreign exchange value of dollar (See Dollar) Staff economic study 937 Foreign lending by large U.S. banks, Survey 149 surveys 60, 515, 992 Federal Open Market Committee: Freund, James L., article 1 Foreign exchange markets, Treasury-Federal Reserve joint intervention 60 Foreign exchange operations, reports 161,448, GARDNER, Stephen S.: 717, 939 Budget, Federal, statement 84 Members and officers: Vice Chairman, Board of Governors, death ... 919 Altmann, Murray, Secretary, appointment 779 Garner, John H., appointed director, San Antonio Broida, Arthur L., Secretary, retirement ... 779 Branch 242 List A72 Gavitt, William S., appointed director, Buffalo Monetary policy and open market operations in Branch 230 1977, article 265 Geary, Anne, appointed Assistant Director, Divi- Policy actions, record 15, 98, 195, 290,382, sion of Consumer Affairs 994 465, 556, 656, 745, 791, 848, 947 Gelbach, John A., elected Class A director, Swap arrangements 60, 250, 917 Cleveland 231 Federal Reserve Act, statement 552 Gonzales, Arthur L., appointed director, El Paso Federal Reserve Banks: Branch 242 Branches (See Branch banks) Gough, Joseph M., Jr., appointed director, Balti- Budgets, approval, and statement on review of more Branch 233 System expenditures for 1977 and 1978 Grimwood, Gordon B., Assistant Director and budget 63,90 Program Director for Contingency Planning, Chairmen and Deputy Chairmen 170, A73 Office of Staff Director for Management, retire- Credit extended by, interpretation of Regulation ment 612 A 427, 486 Grizzard, John L., appointed Associate Division Delegation by Board of certain authority to, Director for Building Services, Division of Supamendment of rules 112 port Services 826 Directors (See Directors) Grobel, Lynn D., appointed director, Helena Discount rates (See Interest rates) Branch 239 Earnings and expenses, 1977 63 Presidents and Vice Presidents, list A73 Purchase of warrants, Regulation E 918, 963 HAMILTON, Albert R., appointed Director, Di- Transfers of funds (See Transfers of funds) vision of Federal Reserve Bank Examinations Federal Reserve Chart Book 996 and Budgets 428 Federal Reserve notes, statement 552 Hanweck, Gerald A., staff economic study 82 Federal Reserve System (See also Board of Gov- Harlow, James G., Jr., elected Class B director, ernors): Kansas City 240 Bank supervision and regulation (See Bank Hawke, John D., Jr., General Counsel, resignasupervision and regulation) tion 149 Dollar, joint Treasury-Federal Reserve statement Henderson, Dale W., appointed Assistant Internaon measures to strengthen 917 tional Division Officer, Division of International Expenditures, review, and 1978 budgets, state- Finance 779 ment 90 Hill, Richard D., elected Class A director, Bos- Film on functions of Nation's central bank.. 779 ton 229 Foreign exchange markets, Treasury-Federal Hillenmeyer, Walter W., Jr., appointed director, Reserve joint intervention 60 Cincinnati Branch 232 Foreign exchange operations of Treasury and Holmes, Alan R., reports ... 161, 265, 448, 717, 939 Federal Reserve, reports 161, 448, 717, 939 Hooper, Peter, article 783 Legislation (See Legislation) Housing (See Real estate) Map of districts and their branch territories .. A92 Howard, William E., Jr., appointed director, New Membership: Orleans Branch 236 Admissions of State banks ..64, 149, 252, 429, Huckfeldt, Joe J., appointed director, Omaha 519, 613, 780, 826, 923, 996 Branch 241 Attrition since 1960, staff economic study .. 12 Hudson, Milton W., Assistant to Chairman, resig- Proposed legislation, statements .. 636, 642, 647 nation 149 Swap arrangements 250, 917 Transfers of funds (See Transfers of funds) Fickling, William A., Jr., appointed Class C INCOME and expenses (See Earnings and exdirector, Atlanta 234 penses) Finance, corporate, article 431 Incomes policies, statements 94, 454 Financial developments, quarterly reports to Con- Individual retirement accounts (IRA's), amendgress 67, 345, 615, 829 ment and interpretation of Regulation Q .. 423,479, Foreign banks: 519, 571, 698, 995 International Banking Act of 1978 538, 963 Industrial production, Board releases ...65, 151, 253, 989, 990 343, 430, 520, 614, 699, 781, 827, 925, 997 Reserve requirement on foreign borrowings, Inflation, article 521 amendment of Regulations D and M ... 756, 111 Insured commercial banks (See Commercial banks) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 64 A 87 Pages Pages Interest on deposits (See also Interest on deposits): Legislation: Ceiling rate authority, statement 631 Bank supervision and regulation: Retirement accounts, increase in ceiling rate, Competition in Banking Act of 1977, statetechnical amendment of Regulation Q..519, 571 ment 179 Time deposits: Foreign banks (International Banking Act of Early withdrawal, amendment and interpreta- 1978), statement to Congress, amendment tion of Regulation Q 698, 995 of Regulation K, and statement of Federal New types, amendment, Regulation Q ... 423, 479 bank regulatory agencies ..538, 963, 989, 990 Transfers of funds, automatic, from savings to Consumer credit: checking accounts, amendment of Regulation Community Reinvestment Act: Q to permit 424, 479 Regulations implementing, interagency, and Treasury tax-and-loan investment program, examination procedures.. 145, 611, 821, 989 amendment of Regulation Q to exempt..398, 427 Statement 631 Interest rates (See also Interest on deposits): Equal Credit Opportunity Act (See Equal Ceilings and disintermediation, staff study... 715 Credit Opportunity) Consumer loans by commercial banks, reduction Fair Credit Billing Act, article 363 in statistical reporting to Board 518 Fair Debt Collection Practices Act, fact Federal Reserve Banks, changes 59, 423, 610, sheet 341 777, 821, 917 Fair Housing Act, proposed guidelines for International statistics, revised tables 612 enforcement, and statement 611, 742 International transactions of United States, article 255 Home Mortgage Disclosure Act, statement.. 631 Interpretations, Board of Governors: Leasing (See Leasing) Bank holding companies 148, 211 Truth in Lending Act (See Truth in Lending) Credit: Credit unions, proposed establishment of central Reserve Bank, extension of kinds of bankers liquidity facility 631 acceptances eligible for discount 427, 486 Dollar, statement on bill to change size, weight, Securities, acceptance of "purpose state- and design of $1 coin 453 ments" by mail for loans on securities Federal Reserve System: purchases 567, 611 Branch directors, qualifications, revision of Equal Credit Opportunity 337, 396, 428 regulation to conform with Federal Reserve Interest on deposits, early withdrawal of time Reform Act of 1977 571, 611 deposits without penalty 995 Federal Reserve Act, proposed amendments. 552 Truth in Lending: Membership decline, statements . 636, 642, 647 Certain open-end credit plans secured by con- Reserve requirements, universal, and Board sumers' residences, right of rescission ... 671 program to encourage membership in Sys- Disclosure of loss of interest when time de- tem, proposed 605 posit is security for loan, proposed 778 Flood insurance program, amendment of Regu- Official staff interpretations 396, 428 lation H 397 Repayment of debt in varying amounts. .428, 518, Full Employment and Balanced Growth Act 757, 779 (Humphrey-Hawkins bill), statement 377 Terms, change in 882 Government in the Sunshine Act, statement ... 651 Investments 518, 629 Interest on deposits, statement on proposed extension of ceiling rate authority, changes ... 631 JACKSON, Philip C., Jr.: Small Business Investment Act of 1958, state- Community Reinvestment Act, Home Mortgage ment 629 Disclosure Act, extension of Regulation Q Tax, statement 736 authority, and central liquidity facility for Treasury Department, statement on extending credit unions, statement 631 direct borrowing authority from 542 Equal Credit Opportunity Act and Fair Housing Leyendecker, Claude E., appointed director, El Act, statement 742 Paso Branch 242 Resignation as Member, Board of Governors.. 918 Lilly, David M., resignation as Member, Board Jellison, Fern, appointed director, Los Angeles of Governors 249 Branch 243 Litigation, pending cases involving Board of Gov- Johns, Lawrence A., appointed director, Detroit ernors 57, 143, 228, 334, 422,514, Branch 237 604, 695, 772, 818, 912, 988 Jones, Sidney L., appointed Assistant to Board.. 149 Loans (See also Credit): Jordan, Thomas A., elected Class B director, Rich- Bank stock, statement on survey 285 mond 232 Commercial bank loans and investments, revisions in series 518 KEOGH plan retirement accounts, amendment and Executive officers of member banks, amendment interpretation of Regulation Q 423, 479,519, of Regulation O to increase limit and to 571, 698, 995 clarify 211, 251, 611, 670 Kesey, Chester J., appointed director, El Paso Foreign lending by large U.S. banks, Branch 242 surveys 60, 515, 992 Kopecky, Kenneth J., staff economic study 937 Interest loss when time deposit is security Kreimann, Walter W., appointed Associate Divi- for, proposed interpretation on disclosure.. 778 sion Director for Staff Support, Division of Real estate (See Real estate) Support Services 826 Statistical reporting to Board, reduction 518 Luckett, Charles A., article 153 LEASING, pamphlet explaining Consumer Leasing Act, and adoption of criteria for exemption MCBRIDE, Lloyd, appointed director, Pittsburgh from leasing laws and Regulation Z 426, 428, 481 Branch 232 Lefever, David M., article 837 McKelvey, Edward F., staff economic study 715 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 Federal Reserve Bulletin • December 1978 Pages Pages McKetta, John J., appointed director, San Antonio Morisse, Kathryn A., article 255 Branch 243 Mortgages (See Real estate) McKinney, John A., elected Class B director, Morton, John, article 783 Kansas City 240 Muller, Steven, appointed Class C director, Rich- McMahon, James D., appointed director, Los An- mond 233 geles Branch 243 Mannion, Robert E., appointed Associate General NATIONAL banks: Counsel 64 Condition and income reports (See Condition Margin requirements (Regulations G, T, and U): and income reports) Acceptance of "purpose statements" by mail for Reserve requirement on foreign borrowings, loan on securities purchases, new interpretaamendment of Regulation M 756, 111 tion of Regulations G and U 567, 611 Supervision and regulation (See Bank supervi- Certain nonconvertible corporate bonds, amendsion and regulation) ment of Regulation T 428, 801, 823 Over-the-counter stocks (See Over-the-counter margin securities) OPEN market operations (See Federal Open Mar- Subordinated capital loan to another broker or ket Committee) dealer, amendment of Regulation T 611, 670 Opper, Barbara N., article 441 Matthews, Robert E., return to Federal Reserve Over-the-counter margin securities: Bank of Philadelphia 149 Certain nonconvertible corporate bonds, amend- Mead, Thomas E., Assistant Director, Division of ment of Regulation T 801, 823 Banking Supervision and Regulation, retire- List: ment 428 Requirements for inclusion 251, 427, 480 Meeder, Lorin S., appointed Assistant Director, Revisions 342, 825 Division of Federal Reserve Bank Operations.. 519 Mellish, Donald L., appointed director, Seattle PARDEE, Scott E., reports 161, 448, 717, 939 Branch 245 Parks, Virginia, appointed director, Seattle Member banks (See also National banks): Branch 245 Branches (See Branch banks) Partee, J. Charles: Credit extended by Reserve Banks 427, 486 Bank stock loans, statement on survey 285 Loans: Federal Reserve Act, statement on proposed Executive officers, amendment of Regulation amendments 552 O to increase limit and to clarify 211,251, Full Employment and Balanced Growth Act, 611, 670 statement 377 Statistical reporting to Board, reduction 518 Treasury Department, statement on extension of Reserve requirements (See Reserve require- direct borrowing authority 542 ments) Payments mechanism (See Transfers of funds) State member banks (See State member banks) Petersen, Neal L., appointed General Counsel ... 252 Supervision and regulation (See Bank supervi- Phillips, Frederic H., elected Class A director, sion and regulation) Richmond 323 Transfers of funds (See Transfers of funds) Policy actions, Federal Open Market Committee Mergers (See Bank Merger Act) (See Federal Open Market Committee) Mettler, Ole R., elected Class A director, San Prell, Michael J., appointed Associate Research Francisco 243 Division Officer, Division of Research and Michelson, Gertrude, appointed Class C director, Statistics 779 New York 230 Production (See Industrial production) Miller, G. William: Promisel, Larry J., appointed Assistant Interna- Appointment as Member and designation as tional Division Officer, Division of International Chairman, Board of Governors 248 Finance 779 Bank supervision and regulation, foreign banks, Publications and releases in 1978: statement 538 Annual Report, 1977 519 Banking system, U.S., statement 458 Annual Statistical Digest, 1973-1977 994 Dollar rescue operations and their domestic im- Bank Holding Company Movement to 1978: A plications, statement 943 Compendium 922 Consumer pamphlets 250, 922, 996 Federal budget, statement 190 Federal Reserve Chart Book 996 Federal Reserve System membership, 636, 642 Federal Reserve Measures of Capacity and Ca- Government in the Sunshine Act, statement ... 651 pacity Utilization 148 Monetary policy, conduct, and condition and Foreign lending survey ("Country Exposure outlook for national economy, statements .. 185, 190, 373, 543, 548, 642, 843, 943 Report") 60 Improving the Monetary Aggregates: Staff Tax legislation, statement 736 Papers 993 Millsaps, Fred R., appointed director, Miami Leasing, pamphlet explaining Leasing Act 426 Branch 235 List of available publications A74 Minehan, Cathy E., temporary appointment as As- Over-the-counter margin stock list 251,342, sistant Secretary of Board, and return to Federal 427, 480, 825 Reserve Bank of New York 149, 519 Puckett, Richard H., appointed Manager, Regula- Mingo, John J., staff economic study 82 tory Improvement Project, Office of Secretary... 612 Monetary aggregates, staff papers on improving.. 993 Monetary policy: Article 265 RAIKEN, Allen L., appointed Associate General Conduct, and condition and outlook for national Counsel 64 economy, statements 185, 190, 373,543, Real estate: 548, 642, 843, 943 Brokers, proposed amendment of Regulation B.. 920 Money stock, revision 338 Community Reinvestment Act.... 145,611,821, 989 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 64 A 89 Pages Pages Real estate—Continued Regulations and rules—Continued Fair Housing Act, proposed guidelines for en- Q, Interest on Deposits: forcement, and statement 611, 742 Retirement accounts, increase in ceiling rate, Home mortgage disclosure, exemption actions technical amendment 519, 571 from Regulation C and statement 251, 631 Time deposits: Household borrowing in recovery, article 153 Early withdrawal, amendment and Housing, new consumer pamphlet 250 interpretation 698 995 Loans in identified flood-hazardous areas, New types, amendment 423, 479 amendment of Regulation H 397 Transfers of funds, automatic, from savings Mortgage borrowing against equity in existing to checking accounts, amendment to homes, staff economic study 361 permit 424, 479 Regulation Z, interpretations and Treasury tax-and-loan investment program, amendment..428, 518, 671, 697, 756, 778, 779 amendment exempting 398, 427 Record of policy actions, Federal Open Market Com- Regulation relating to Reserve Bank directors, mittee (See Federal Open Market Committee) actions and responsibilities 568 Regulations and rules, Board of Governors: Regulations Relating to Branches of Federal A, Extensions of Credit by Federal Reserve Reserve Banks, revision for conformity with Banks: Federal Reserve Reform Act of 1977 ..571, 611 Bankers acceptances, interpretation to ex- Rules of Procedure, amendments.... 880, 881, 882 tend kinds eligible for discount 427, 486 Rules Regarding Delegation of Authority, B, Equal Credit Opportunity: amendments 112, 485, 756, 880 Adverse action, amendment 306, 337 Rules regarding public observation of meetings, Collection of information, interpretations 337 amendments 756 Implementation, proposed guidelines 611 T, Credit by Brokers and Dealers: Official staff interpretations, revised proce- Certain nonconvertible corporate bonds: dures, amendment 396, 428 Credit on, amendment 801, 823 Real estate brokers and business credit, pro- Margin requirements on, proposed posed amendments relating to 920 amendment 428 C, Home Mortgage Disclosure: Over-the-counter margin stock list, amend- Exemption actions 251 ment 251, 427, 480 D, Reserves of Member Banks: Subordinated capital loart to another broker or Borrowings from member bank with head dealer, amendment 611, 670 office outside United States, amend- U, Credit by Banks for the Purpose of Purchasment 27, 756, 111 ing or Carrying Margin Stocks: Foreign borrowings, amendment 756, 111 Acceptance of "purpose statements" by mail, Supplemental, on all large-denomination time new interpretation 567, 611 deposits and certain other liabilities, Over-the-counter margin stock list, amendamendment 917, 962 ment 251, 427, 480 Treasury tax-and-loan investment program, Y, Bank Holding Companies: amendment exempting 398, 427 Acting as general insurance agents, comment E, Purchase of Warrants: invited 518 Cancellation 918, 963 Check verification as permissible activity, F, Securities of Member State Banks: proposed amendment 698 Disclosures to stockholders, proposed amend- Divestitures in certain situations, interpretament 251 tion 211 Securities and Exchange Commission regula- Foreign offices, proposed amendment 342 tions, amendments to conform 859 Municipal securities dealer activities, amend- G, Securities Credit by Persons Other Than ment 306 Banks, Brokers, or Dealers: Nonbank activities, proposed change in pro- Acceptance of 4'purpose statements'' by mail, visions concerning publication of notice of new interpretation 567, 611 intention to commence 611 Over-the-counter margin stock list, amend- Registration or application for expansion, apment 251, 427, 480 proval of several technical changes affect- H, Membership of State Banking Institutions in ing, and other revised rules 920 the Federal Reserve System: Sale of insurance, proposed revision 342 Real estate loans in identified flood-hazardous Selling money orders, traveler's checks, savareas, amendment 397 ings bonds, and certain courses, proposed Securities transactions, proposed amendment amendment 251 to establish uniform records and proce- Transfer agents, amendment 27 dures 148 Transferred shares or other assets, interpreta- Transfer agents, amendment 27 tion 148 K, Corporations Engaged in Foreign Banking Underwriting and dealing in Govt, securities, andFinancing Underthe Federal Reserve Act: Board decisions on 148 Reserve requirements on U.S. deposits, Z, Truth in Lending: amendment for conformity with Interna- Billing: tional Banking Act of 1978 963, 989 Cash-advance check transactions, amend- M, Foreign Activities of National Banks: ment 147 Reserve requirement on foreign borrowings, Descriptive, of nonsale credit transactions amendment 756, 111 on open-end credit accounts, amend- O, Loans to Executive Officers of Member ment 112 Banks: Certain open-end credit plans secured by con- Indebtedness under bank credit-card, check- sumers' residences, amendment and intercredit, or similar plan, amendment.. .611, 670 pretation concerning right of re- Limit, amendment to increase 211, 251 cission 671, 697 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 Federal Reserve Bulletin • December 1978 Pages Pages Regulations and rules—Continued Simpson, Thomas D., staff economic study 531 Z, Truth in Lending—Cont. Smaby, James H., elected Class A director, Min- Consumer leasing laws, exemption from, neapolis 239 amendment 428, 481, 485 Smith, Ralph W., Jr., appointed Assistant Interna- Credit transactions, exemption from 919 tional Division Officer, Division of International Deferred action on all amendments except Finance 779 where unavoidable 993 Smith, Wayne J., article 353 Disclosure of loss of interest when time de- Staff economic studies (summaries): posit is used as security for loan, proposed Bank market structure, effect of bank holding interpretation 778 company foothold acquisitions on 532 Official staff interpretations, revised proce- Commercial banks, external capital financing dures, amendment 396, 428 requirements, 1977-81 82 Record retention requirements for lenders in Credit-scoring models, problems in applying credit transactions, amendment 486, 517 discriminant analysis 13 Repayment of debt in varying amounts: Federal Reserve System attrition since 1960, All cases, proposed revised interpretation analysis 12 and amendment 428, 518, 778 Interest rate ceilings and disintermediation 715 Disclosure, amendment, and withdrawal of Member bank required reserve ratios, behavior proposed revision of interpretation 756, 779 and effects of Board action, 1968-77 531 Minor irregularities, maximum irregular Mortgage borrowing against equity in existing period limits, interpretation 757 homes 361 Terms, amendment of interpretation 882 Relationship between reserve ratios and mone- Repurchase agreements and Federal funds, survey tary aggregates under reserves and Federal and article 149, 353 funds rate operating targets 937 Reserve requirements: State member banks: Member banks: Condition and income reports (See Condition Changes (See Regulations and rules, Board and income reports) of Governors: D) Fair Debt Collection Practices Act, fact sheet... 341 Staff economic studies 531, 937 Home mortgage disclosure, exemption actions Universal, and Board program to encourage from Regulation C, and statement 251, 698 membership in Federal Reserve System, pro- Membership in Federal Reserve System: posed legislation 605 Admissions 64, 149,252,429,519,613,780, Revisions (See also Tables): 826,923, 996 Commercial bank loans and investments series.. 518 Legislation, proposed, statements ... 636, 642, 647 Condition and income reports, and availability Mergers (See Bank Merger Act) of preliminary data 64, 147, 251 Real estate loans in identified flood-hazardous Money stock 338 areas, amendment of Regulation H 397 Rhoades, Stephen A., staff economic study 532 Securities (See Securities) Rose, John T., staff economic study 12 Supervision and regulation (See Bank supervision and regulation) SAG AN, John, appointed Class C director, Chi- Tax transactions between parent holding compacago 236 nies and, Board policy statement 825 Savings and loan associations 145, 423,479, Statements to Congress (includes reports): 611, 821, 989 Bank stock loans, survey 285 Schneider, Phillip W., appointed director, Portland Banking system, U.S., condition 458 Branch 244 Budget, Federal, financial implications of expand- Schweitzer, Paul, staff economic study 532 ing public debt 84 Seasonal adjustment techniques, formation of Community Reinvestment Act 631 committee to review 341 Competition in Banking Act of 1977 179 Securities (See specific types): Credit unions, proposed establishment of central Bank stock loans, statement on survey 285 liquidity facility 631 Municipal securities dealer activities, amend- Dollar: ment of Regulation Y 306 $1 coin, bill to change size, weight, Nonconvertible corporate bonds, amendment of and design 453 Regulation T 428, 801, 823 Rescue operations and their domestic Over-the-counter (See Stock market) implications 943 State member banks: Equal Credit Opportunity Act and Fair Housing Securities and Exchange Commission regula- Act, Board's enforcement 742 tions, amendment of Regulation F to con- Exports, U.S., influences of recent exchange-rate form 859 movements on 86 Transactions, proposed amendment of Regu- Federal budget 190 lation H to establish uniform records and Federal Reserve Act, proposed amendments to exprocedures 148 pand type of collateral eligible to secure Federal Transfer agents, amendment of Regulations H Reserve notes, and to expand number of Class C and Y 27 directors of Reserve Banks 552 Stock market (See Stock market) Federal Reserve System: Seiders, David F., article and staff economic Expenditures, review, and 1978 budgets 90 study 153, 361 Membership, proposed legislation to stem at- Shafer, Jeffrey R., appointed Associate Interna- trition, and related issues 636, 642, 647 tional Division Officer, Division of International Financial developments, quarterly reports to Finance 779 Congress: Shirley, George S., appointed director, Bir- Q4, 1977 67 mingham Branch 234 Ql, Q2, andQ3, 1978 345,615, 829 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 64 A 91 Pages Pages Statements to Congress—Continued Teed, Raymond L., appointed Assistant Director, Foreign banks, proposed legislation 538 Division of Federal Reserve Bank Examinations Full Employment and Balanced Growth Act 377 and Budgets 923 Government in the Sunshine Act 651 Teeters, Nancy H., appointed Member, Board of Home Mortgage Disclosure Act 631 Governors Ill Incomes policies 94, 454 Terteling, Joseph L., appointed director, Salt Lake Interest on deposits, proposed extension of ceiling City Branch 244 rate authority and adoption of changes 631 Thrift institutions, nonbank, in 1977 and 1978, Monetary policy, conduct and condition and article 927 outlook for national economy 185, 190,373, Transfers of funds: 543,548,642,843, 943 EFT (electronic funds transfers) and privacy, Small Business Investment Act of 1958, proposed article 279 amendment 629 Nationwide network for electronic payments and Tax legislation 736 for clearing services, Board approval for, and Treasury Department, extension of direct borrow- completion 425, 823 ing authority 542 Prices, preliminary schedule, for Federal Re- Truth in Lending Act, simplification 740 serve check collection and automated clear- Stein, Joan, appointed director, Jacksonville inghouse services 989 Branch 235 Proposed actions of Board 64 Sternlight, Peter D., report 265 Savings to checking accounts, automatic, Stock market: amendment of Regulation Q to permit, effec- Acceptance of "purpose statements" by mail for tive Nov. 1, and guidance on advertising of loans on securities purchases, new interpreta- plans for 424, 479, 778, 823 tion of Regulations G and U 567, 611 Treasury Department: Nonconvertible corporate bonds, amendment of Direct borrowing authority, statement 542 RegulationT 428,801,823 Dollar, joint Treasury-Federal Reserve state- Over-the-counter margin stock list: ment on measures to strengthen 917 Requirements for inclusion, change..251, 427,480 Foreign exchange markets, joint intervention Revisions 342, 825 with Federal Reserve 60 Subordinated capital loan to another broker or Foreign exchange operations of Treasury and dealer, amendment of Regulation T ...611, 670 Federal Reserve, reports 161, 448, 717, 939 Stocks, statement on survey of bank Swap arrangements, change 60, 250, 917 stock loans 285 Truth in Lending: Stringham, Fred H., appointed director, Salt Lake Act: City Branch 244 Consumer leasing laws, exemption Stroube, William H., appointed Class C director, from 428, 485 St. Louis 237 Simplification, statement 740 Struble, Frederick M., appointed Assistant Re- Regulation Z (See Regulations and rules, Board search Division Officer, Division of Research of Governors) and Statistics 779 Tschinkel, Sheila, report 265 Supervision and regulation (See Bank supervision Tuttle, Baldwin B., Deputy General Counsel, resand regulation) ignation 64 Surveys: Bank stock loans, statement 285 U.S. GOVERNMENT securities: Consumer credit, extension and revisions 698 Underwriting and dealing in Federal Govt, and Consumer rights under Equal Credit Opportunity municipal securities by bank holding compaand Fair Credit Billing Acts, article on exer- nies, Board decisions on 148 cise of 363 U.S. international transactions, article 255 Foreign lending by large U.S. banks...60, 515, 992 Repurchase agreements and other borrowings by VAUGHAN, J. R., elected Class B director, San banks in Federal funds 149 Francisco 243 Time and savings deposits at commercial banks 76, 367, 623, 837 WALLACE, John M., temporary appointment as Trust assets, revised interagency requirements Assistant Secretary of Board 519 for reporting 921 Wallich, Henry C.: Swap arrangements 60, 250, 917 Exports, U.S., statement 86 Incomes policies, statements 94, 454 Small Business Investment Act of 1958, state- TABLES (See also Revisions; for index to tables ment 629 published monthly, see guide at top of p. Warrants, cancellation of Regulation E 918, 963 A81): Watkins, Hays T., elected Class B director, Annual Statistical Digest, 1973-1977 994 Cleveland 231 Consumer credit, 3-year extension of survey and Weber, Arnold R., appointed Class C director, revisions 698 Cleveland 231 Corporations, nonfinancial, new series on work- Williams, J. Earl, appointed director, Houston ing capital 533 Branch 242 Erratum 149 Williams, John R., articles 367, 623 Foreign exchange value of U.S. dollar, revision Willson, Hugh M., elected Class A director, Atof index of weighted-average value 700 lanta 234 International statistics, revised 612 Wire transfers of funds (See Transfers of funds) Tax legislation, statement 736 Wright, Rebekah F., article 76 Tax transactions between State member banks and parent holding company, Board statement 825 YOHN, Frederick O., Jr., article 431 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 92 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Helena Minneapolis Detroit Chicago \Salt Lake City Omaha* tsfcu lpep| Denver Louisvil Kansas City t. Louis fichjnoi 'harlotte. \Oklahoma City* [M^imphisSashm l"geles Mile Rock Birminghai Atlanta Dallas® UPaso jacW>*vitte Houston i ^Orleans \San Antonio January 1978 * a > HAWAII © 0 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

Guide to Tabular Presentation and Statistical Releases GUIDE TO TABULAR PRESENTATION SYMBOLS AND ABBREVIATIONS P Preliminary SMSA's Standard metropolitan statistical areas r 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) 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