Federal Reserve Bulletin, 1979-04

APRIL 1979 FED ER A L RESERVE BULLETIN U.S. International Transactions in 1978 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

VOLUME 65 □ NUMBER 4 □ APRIL 1979 FED ERA L RESERVE BULLETIN Board of Governors of the Federal Reserve System Washington, D.C. publications co m m ittee 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 statt 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 299 U.S. International Transactions in transcript confined to substantive commit­ 1978 tee discussions relating to economic and financial matters and to monetary policy; The dollar came under considerable pres­ Governor Coldwell also gives the board’s sure in the foreign exchange markets in support to proposed legislation to make the 1978 although the U.S. trade deficit wid­ term of the chairman of the board begin ened only slightly compared with 1977. one year after the inauguration of the President although the board does not 305 Staff Studies favor a similar coterminous term for the According to the study, “Impact of the vice chairman, before the Subcommittee Dollar Depreciation on the U.S. Price on Domestic Monetary Policy of the Level: An Analytical Survey of Empirical House Committee on Banking, Finance Estimates,” the depreciation of the dollar and Urban Affairs, April 4, 1979. in exchange-rate markets in 1977 and 1978 raised the level of U.S. consumer prices 315 Governor Partee explains why the board 1 percent. cannot support the proposal to lower the minimum denomination on money market 307 Industrial Production certificates to $1,000; offers support for Output rose approximately 0.8 percent in a proposed five-year, floating-ceiling cer­ March. tificate; and recommends that the asset powers of thrift institutions be liberalized 308 Statements to Congress including the authorization for nationwide variable-rate mortgages, before the Sub­ Governor J. Charles Partee testifies con­ committee on Financial Institutions of the cerning the administration of deposit rate Senate Committee on Banking, Housing ceilings and their effects on the rate of and Urban Affairs, April 11, 1979. return available to small savers and rec­ ommends to the Congress that it act to 321 Announcements liberalize the asset powers of thrift institu­ tions and exempt federally insured depos­ Issuance in final form of portions of Reg­ itary institutions from state usury ceilings, ulation E relating to consumer protection before the Commerce, Consumer and under two sections of the Electronic Fund Monetary Affairs Subcommittee of the Transfer Act. (See Law Department.) House Committee on Government Opera­ Revocation of Regulation S, which gov­ tions, March 22, 1979. erned the board’s power to regulate and 312 Governor Philip E. Coldwell discusses the examine banking services performed for views of the board on legislation dealing state-chartered member banks by outsid­ with the release of Federal Open Market ers. (See Law Department.) Committee minutes to the public and gives Changes in board staff. the board’s recommendatiQn that the form of the detailed minutes be a lightly edited Publication of a revised list of over-the- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

counter stocks that are subject to the to instruct the manager to direct open board’s margin regulations. market operations toward maintaining the weekly average federal funds rate at about Proposed changes in Regulation E regard­ the current level, provided that over the ing certain disclosures to all consumers February-March period the annual rates of with electronic fund transfer cards. Exten­ growth of M-1 and M-2, given approxi­ sion of deadline for comment on proposed mately equal weight, appeared to be establishment of international banking fa­ within ranges of 3 to 7 percent and 5 to cilities in New York City. Proposed 9 percent respectively. The committee measures to help individuals obtain a agreed that if growth of M-1 and M-2 for higher rate of return on their savings. the two-month period appeared to be out­ Proposed uniform policy for determining side the indicated limits, the manager was how bank examiners should classify past promptly to notify the chairman, who due consumer installment loans held by would then consult with the committee to commercial banks. determine whether the situation called for supplementary instructions. Admission of three state banks to mem­ bership in the Federal Reserve System. 336 Law Department 325 Record of Policy Actions of the Implementation of Regulation E; rescis­ Federal Open Market Committee sion of Regulation S; amendments to Regulations BB, Q, and Z; various rules At the meeting on February 6, 1979, the and bank holding company and bank committee decided both to lower the merger orders; and pending cases. ranges for growth of the monetary aggre­ gates over the year ahead and to widen them slightly, reflecting in part special Al Financial and Business Statistics factors expected to influence monetary growth and uncertainties with respect to A3 Domestic Financial Statistics the magnitude of their impact. For the A46 Domestic Nonfinancial Statistics period from the fourth quarter of 1978 to A54 International Statistics the fourth quarter of 1979, the committee adopted a range of IV2 to AV2 percent for A69 Guide to Tabular Presentation M-1. After allowance for a dampening and Statistical Releases effect of about 3 percentage points pro­ jected to result from the further shifts in A70 Board of Governors and Staff funds from demand deposits to savings accounts with automatic transfer facilities, A72 Open Market Committee and Staff; that range allowed for the possibility of Advisory Councils a significant deceleration of growth from the pace of recent years. The ranges A73 Federal Reserve Banks, Branches, adopted for M-2 and M-3 were 5 to 8 and Offices percent and 6 to 9 percent respectively. The associated range for the growth of A74 Federal Reserve Board Publications commercial bank credit was reduced to IV2 to W/2 percent. A76 Index to Statistical Tables With respect to policy for the period immediately ahead, the committee decided A78 Map of Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1978 This article was prepared by Allen B. Frankel Japanese yen, and the German mark—three of of the U.S. International Transactions Section those currencies—were much larger. of the Division of International Finance. Following the November 1 announcement, the exchange value of the dollar rose sharply (10 Although for the year as a whole the U.S. trade percent) to about the average level of August deficit widened slightly in 1978 compared with and September. Even so, the market remained 1977, the rate of deficit declined during the year. tentative; and the announcement by the Organi­ The major factor working to reduce the deficit zation of Petroleum Exporting Countries during the year was a gain in U.S. exports, (OPEC) on December 17 of an increase in oil reflecting the pickup in economic activity prices in 1979 that was somewhat larger than abroad. In spite of the declining trade deficit, expected triggered renewed selling pressure. however, the dollar came under considerable Since the turn of the year, the dollar has pressure in the foreign exchange markets. strengthened. The U.S. and other governments resisted the recurring bouts of dollar weakness during 1978 M erchandise Trade by purchasing large amounts of dollars in the foreign exchange markets. As in 1977, the in­ From the mid-1960s through the early 1970s, vestment of the dollars acquired through such the U.S. merchandise trade balance moved purchases was concentrated in U.S. Treasury gradually from surplus to deficit (chart 1). This securities. Once again, the U.S. private sector movement was interrupted during the 1974—75 increased its outstanding net financial claims worldwide economic slowdown: because the against the rest of the world. Most of the in­ United States suffered a disproportionately crease was in the net claims of U.S. banking sharp economic contraction, the trade balance offices on nonresidents, financed largely by a swung into surplus in 1975, despite an enor­ rise in borrowings by banks in the U.S. money mous increase in U.S. outlays for imported oil. market. The surplus proved short-lived; subsequent The downward pressure on the dollar in economic recovery was stronger here than foreign exchange markets that had begun in abroad, pushing the United States much closer September 1977 continued into the first quarter to full capacity utilization, and the trade deficit of 1978. Then, after a respite in the spring, the dollar came under renewed downward pressure 1. U.S. balances on trade and current account in exchange markets several more times during Billions of dollars the year. It reached a low point in late October just before the announcement of a dollar-support package that included domestic monetary ac­ tions and the mobilization of resources for the U.S. portion of coordinated U.S. and foreign intervention in the foreign exchange markets. From December 1977 to the end of October 1978, the trade-weighted value of the dollar against 10 major currencies declined about 17 percent; declines against the Swiss franc, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

300 Federal Reserve Bulletin □ April 1979 increased steeply from 1976 through early Hemisphere. The volume of such exports rose 1978. nearly 25 percent from the fourth quarter of Although the trade deficit in 1978, at $34 bil­ 1977 to the fourth quarter of 1978. Second, lion, was about $3 billion larger than in 1977, U.S. oil imports fell because higher levels of it showed substantial improvement during the U.S. petroleum demand were more than met by year (table 1). From a peak annual rate of $48 Alaskan production and by a drawing down of billion in the first quarter of 1978, it narrowed inventories from their unusually high levels at to about $25 billion in the fourth quarter, re­ the beginning of the year (chart 2). sponding to developments in both imports and More important than these special factors, exports. however, were the renewed strength of eco­ Two special factors figured in the narrowing nomic activity abroad and the improved com­ of the trade deficit. First, the net demand for petitiveness of U.S. goods resulting from the exports of U.S. agricultural commodities was substantial depreciation of the U.S. dollar that stimulated by poor harvests in the Southern had begun in the fall of 1977. From the fourth 1. U.S. international transactions1 Billions of dollars 1977 1978 Transaction 1977 1978 p Q4 Ql Q2 1 Q3 Q4P Current account ..................................... -15.3 -16.0 —6.1 -7.6 -3.3 -3.7 -1.3 Merchandise trade balance ...................... -31.1 -34.1 -9.4 -11.9 -7.9 -8.0 -6.4 Exports ................................................. 120.6 141.8 29.6 30.8 35.3 36.5 39.3 Imports ................................................. -151.7 -176.0 -39.0 -42.7 -43.1 -44.5 -45.7 Investment income, net2 ......................... 17.5 19.9 3.8 4.9 4.6 4.9 5.6 Other services ......................................... 3.0 3.3 .5 .7 1.2 .7 .7 Unilateral transfers, private and government ...................................... -4.7 -5.1 -1.1 -1.3 -1.3 -1.3 -1.2 Private capital flows .............................. -17.0 -25.7 -9.3 -12.1 .8 1.8 -16.2 Bank-reported capital, net (outflow,—) ... -4.7 -17.1 -5.6 -6.6 1.3 2.3 -14.2 U.S. net purchase (—) of foreign securities -5.4 -3.4 -.7 -.9 -1.1 -.5 -.9 Foreign net purchase (+) of U.S. Treasury' securities ........................................... .6 2.3 -.3 .9 .8 -1.1 1.6 Foreign net purchase (+) of other U.S. securities .................................. 2.9 2.9 .8 .5 1.3 .5 .6 U.S. direct investment abroad2 ............... -12.2 -15.4 -3.2 -5.0 -^.0 -2.7 -3.7 Foreign direct investment in the United States2 .............................................. 3.3 5.6 .5 .8 1.9 2.2 .7 Other corporate capital flows, net ............ -1.4 —.6 -.8 -1.7 .5 1.0 -.3 Foreign official assets in the U.S. (increase, +) .................................... 37.1 34.0 15.5 15.8 -5.7 4.9 19.0 By type U.S. Treasury securities ...................... 30.3 24.1 12.9 13.0 -5.7 3.0 13.8 Other U.S. government-related liabilities3 ......................................... 4.0 3.5 1.4 .9 -.1 .8 1.9 Other .................................................... 2.9 6.4 1.3 1.9 .1 1.0 3.4 By area Industrial countries4 ............................ 28.9 34.6 13.9 13.2 -2.2 6.4 17.2 Members of OPEC .............................. 6.7 -.6 1.0 2.0 -2.8 -1.6 1.9 Other countries ..................................... 1.5 * .6 .6 -.7 .1 * U.S. government foreign assets, net (increase,—) ..................................... -3.9 -3.7 -.8 -.7 -.8 -1.4 -.9 Reserve position in IMF ......................... -.3 4.2 * .3 .4 .2 3.3 Convertible currencies and other reserve assets ............................................... .1 -3.3 * -.1 -.1 -.1 -3.1 U.S. government foreign credits and other claims, net ........................................ -3.7 -4.7 -.8 -.9 -1.2 -1.5 -1.1 Statistical discrepancy ........................... -.9 11.4 .8 4.5 9.1 -1.6 -.6 1. Current-account items are seasonally adjusted; seasonal 3. Includes debt securities of U.S. government corporations factors are no longer calculated for most capital transactions. and agencies and U.S. government liabilities associated with Data afe from U.S. Department of Commerce, Bureau of transactions arranged with or through foreign official agencies. Economic Analysis. Details may not add to totals because of 4. Western Europe, Canada, Japan, Australia, New Zea­ rounding. land, and South Africa. 2. Includes reinvested earnings. * Less than $50 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions 301 2. U.S. demands for petroleum products Investment Income Millions of barrels per The U.S. current-account deficit in 1978 was Imports $16 billion, about $1 billion larger than in 20 p Total 1977. As in other recent years, net receipts from service transactions were a substantial off­ 15 set to the merchandise trade deficit. Earnings 10 on the net international investments of the United States contributed $20 billion to the sur­ 5 plus of service transactions in 1978, $2.5 bil­ 0 lion more than in 1977 (table 1). This rise ap­ 1974________________1976________________1978 pears to be attributable partly to the impact of Imports as a percent of total demand the dollar’s depreciation on the dollar value of 1974 1975 1976 1977 1978 the foreign currency earnings of foreign subsid­ 39.5 39.8 44.8 50.5 46.2 iaries of U.S. corporations. U.S. assets abroad generated income of quarter of 1977 to the fourth quarter of 1978, $41.5 billion in 1978, not quite $10 billion the volume of U.S. nonagricultural exports more than in 1977. Earnings of foreign-owned showed a 16 percent increase, in contrast with assets in the United States were $21.5 billion a slight decline in the preceding year. The fall in 1978, up $7 billion from 1977. Earnings on in the price-adjusted value of the dollar, shown foreign direct investment in the United States in chart 3, is expected to have a progressively increased $1 billion in 1978 to $4 billion. larger impact in 1979. The value of exports These earnings still accounted for less than both to the major industrialized countries and one-fifth of total foreign investment income to the developing countries of Latin America, earned in the United States. Slightly less than Asia, and Africa increased one-third from the half the increase in the income of foreignfourth quarter of 1977 to the fourth quarter of owned assets in the United States was ac­ 1978. counted for by a rise in U.S. government pay­ For nonoil imports, the 8 percent rise in vol­ ments, primarily interest payments on U.S. ume in 1978, on top of very large increases in Treasury securities held by foreign govern­ the two previous years, reflected the continued ments. The increase reflects both higher U.S. strength of the U.S. economy. The advance interest rates and a $57 billion increase in was spread over various major commodity cate­ foreign holdings of U.S. Treasury securities gories: large increases in volume were recorded over 1977 and 1978. for industrial supplies, consumer goods, and foods. Capital Flows 3. U.S. international price competitiveness In 1978, as in 1977, a large deficit in the U.S. current account was accompanied by an even larger increase in foreign official assets in the United States (chart 4). For the two years com­ bined, foreign official assets in the United States rose by $71 billion, some $40 billion more than the combined current-account defi­ cits for those two years. Recorded transactions resulted in a $26 bil­ lion net outflow of private capital in 1978, $9 “CPI-adjusted dollar” is “weighted-average dollar” multi­ billion more than in 1977. Partly offsetting this plied by relative consumer prices (U.S. divided by foreign increase was a $12 billion swing in unrecorded consumer prices). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

302 Federal Reserve Bulletin □ April 1979 4. Financial flows in Changes in holdings of U.S. international transactions1 U. S. Treasury securities2 Billions of dollars, seasonally adjusted Billions of dollars Inflow 20 Foreign official assets in the U.S, 10 Current account (Sign reversed) NPt-j Private capital transactions, net Outflow 1. U.S. government-related transactions are excluded. crepancy (mostly unrecorded capital transactions). “Foreign 2. Changes in holdings of Federal Reserve Banks are ex­ private investors” includes international and regional organi­ cluded. zations and also notes denominated in German marks sold to “Private capital transactions, net” includes statistical dis- private German residents in December 1978. transactions—from a small net outflow in 1977 The large-scale foreign official investment in to a large net inflow in 1978 (table 1). short-term Treasury securities in the first and fourth quarters of 1978 (chart 4) tended to depress yields on Treasury securities relative to Official Capital Transactions those on other dollar-denominated securities, The increase in foreign official assets in the particularly in the maturity range of six months United States in 1978 was more than accounted and under. These official purchases of both new for by the increased holdings of the industrial and seasoned short-term Treasury securities had countries. This official inflow was associated the effect of lengthening the average maturity with large purchases of dollars by foreign cen­ of the holdings of other investors. The public tral banks and additions to dollar holdings as appears to have substituted short-term, private a counterpart to U.S. drawings on swap lines money market instruments (such as bank-issued to finance intervention sales of foreign curren­ certificates of deposit) for Treasury bills. cies. The $1 billion drop in OPEC official hold­ ings, after a $7 billion rise in 1977, appears to have been a consequence mainly of the re­ Private Capital Transactions duced current-account surpluses of several of the countries rather than an indication of any Bank-reported private capital transactions re­ marked change in their investment behavior. sulted in a $17 billion net outflow in 1978, Foreign official institutions have continued to compared with the $5 billion net outflow for demonstrate a strong preference for U.S. Treas­ 1977 (table 1). The fourth-quarter surge in ury securities over other dollar-denominated fi­ lending to foreigners by domestic banking of­ nancial assets. The increase in their holdings fices may well have been associated with the of such securities amounted to $24 billion in borrowing of dollars by bank customers in an­ 1978 (table 1), slightly less than three-quarters ticipation of a possible depreciation of the dol­ of the official net capital inflow during the year; lar (chart 5). The offset to this buildup in it was $6 billion more than the increase re­ private dollar-denominated debt was an increase corded for all U.S. private investors. in official holdings of U.S. Treasury securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions 303 Strong foreign demand for short-term dollar- U.S. banks’ own foreign offices. In part, this denominated financing in the fourth quarter of inflow appears to have been funded by an in­ 1978 was reflected in a 20 percent increase in crease in deposits by U.S. residents (other than commercial and industrial loans to non-U.S. banks) at the offshore banking offices of U.S. residents at U.S. offices of both U.S.-owned banks. That is, part of the adjustment by U.S. and foreign-owned banks, and in an increase residents to high nominal U.S. interest rates of more than 15 percent in bankers acceptances was to increase their holdings of higher-return created by U.S. banking offices for foreign ac­ deposits in offshore banking offices—both di­ counts. The expansion of acceptance financing rectly, and indirectly through money market may have been associated with the acceleration mutual funds and short-term unit investment of the conversion of dollar-denominated trade trusts. receivables into foreign currencies. Overall, The swing to a large positive statistical dis­ bank-reported claims on foreign nonbanks in­ crepancy in 1978 probably reflected changes in creased more than $5 billion in the fourth quar­ unreported capital items rather than any sub­ ter. In addition, net advances to foreign banking stantial changes in the reporting of merchandise offices (including affiliated offices of U.S. or service transactions. It could also reflect, in banks) increased $8 billion. part, an increase in accounts payable (a net Data now available for bank-reported capital capital inflow), as the higher interest rates pre­ flows in the first quarter of 1979 suggest a vailing in 1978 may have made it attractive to strong reversal of the fourth-quarter pattern. delay dollar payments to foreign suppliers. Funds returned to domestic banking offices from abroad and holdings of U.S. Treasury se­ curities by foreign monetary authorities were D ollar-Support Package reduced (an official capital outflow), with U.S. On November 1, as part of the overall dollarrepayments of previous swap drawings ac­ support package, the government announced counting for part of the reduction. This change that it would mobilize foreign currency re­ in the capital account was accompanied by a sources for possible intervention in foreign ex­ narrowing of interest rate differentials between change markets. Balances of German marks Treasury securities and private money market and Japanese yen were to be acquired through instruments and an easing of the demand by a $3 billion drawdown of the U.S. reserve posi­ banks for funds from domestic sources. tion in the International Monetary Fund and Most of the net increase in funds available through a sale of a part of U.S. holdings of from abroad to domestic banking offices in special drawing rights for foreign currencies; early 1979 took the form of transactions with $1.4 billion equivalent of SDRs was sold for balances of German marks and Japanese yen. 5. Bank-reported capital transactions The government also announced that it would issue to private foreign residents up to $10 Billions of dollars billion equivalent in securities denominated in foreign currencies. The first issue was in De­ cember and amounted to $1.6 billion equivalent of German marks. Two additional issues total­ ing $2.5 billion, one denominated in Swiss francs and a second in German marks, were sold in the first quarter of 1979. These financing activities did not affect the supply of Treasury debt available in U.S. mar­ kets. Intervention sales of foreign currency bal­ 1976_____________1977 ___________1978 ances (in the fourth quarter of 1978, $1.8 bil­ “Net funds supplied” are outflows; “Net funds raised” are inflows. lion equivalent was sold) may affect the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 Federal Reserve Bulletin □ April 1979 amount of Treasury debt held by the public supply of more costly oil. Any reduction in the because the Treasury can use the dollars re­ rates of growth of these countries will, in turn, ceived either to reduce the amount of Treasury reduce their demand for U.S. exports. While debt outstanding or to add to its cash balances. these influences will, in part, be offset by an The government also announced on No­ increase in the demand for U.S. goods and vember 1 that it would increase its gold sales services as a result of higher earnings of oil-ex­ to 1.5 million ounces at each monthly auction porting countries, the net effect is expected to starting in December. This was five times the be negative. In any case, the generally strong amount offered monthly when sales were re­ outlook for the U.S. external position has not sumed in May 1978 and twice the amount of­ been fundamentally altered by these develop­ fered in November. The stepup in the Treas­ ments. ury’s gold sales tends to reduce both the mer­ A reduction in the net inflow of capital to chandise trade deficit (by reducing the net im­ the United States is implicit in the outlook for portation of nonmonetary gold) and the federal a decline in the U.S. current-account deficit in budget deficit. 1979. In addition, the composition of the capi­ tal account is likely to be quite different from what it was in 1978. Official capital inflows, The Outlook which were massive in both 1977 and 1978, The lagged effects of the substantial changes in may be a much less significant part of total cap­ dollar exchange rates that have already oc­ ital transactions this year. For a variety of rea­ curred, along with somewhat stronger growth sons, the United States is expected to attract abroad than in the United States, should result private capital. With an improved outlook for in a continued decline in the U.S. trade deficit the dollar, foreign investors will have an incen­ in the months ahead. Relative changes in infla­ tive to rebalance their positions by purchasing tion rates here and abroad this year are not ex­ dollar-denominated assets. The improvement in pected to erode appreciably the improved com­ U.S. competitiveness may have also increased petitive position of U.S. industry. The current- the appeal of equity investments in U.S. in­ account deficit should shrink at least as much dustry to foreign investors. as the trade deficit. The same forces that will tend to move the The impact of recent events in Iran and the United States toward a smaller current-account recently announced increases in OPEC oil deficit—the ongoing effects of last year’s de­ prices will tend to offset some of the decline preciation of the dollar and relatively faster in the U.S. current-account deficit that was growth abroad—will tend to move those devel­ expected. Exports of U.S. goods to Iran, both oped countries with large current-account sur­ military and nonmilitary, will be reduced. Other pluses closer to balance. The net result may be U.S. trading partners will also be affected both a year in which fewer strains are placed on the by reduced exports to Iran and by a tighter international financial system. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

305 Staff Studies The staffs of the Board of Governors of the In all cases the analyses and conclusions set Federal Reserve System and of the Federal forth are those of the authors and do not neces­ Reserve Banks undertake studies that cover a sarily indicate concurrence by the Board of wide range of economic and financial subjects, Governors, by the Federal Reserve Banks, or and other staff members prepare papers related by the members of their staffs. to such subjects. In some instances the Federal Single copies of the full text of each of the Reserve System finances similar studies by studies or papers summarized in the Bulletin members of the academic profession. are available in mimeographed form. The list From time to time the results of studies that of Federal Reserve Board publications at the are of general interest to the professions and back of each Bulletin includes a separate to others are summarized—or they may be section entitled “Staff Studies” that lists the printed in full—in this section of the Federal studies for which copies are currently available Reserve Bulletin. in mimeographed form. Study S umm ary Impact of the D ollar D epreciation on the U.S. Price Level: A n A nalytical S urvey of Empirical Estimates Peter Hooper and Barbara R. Lowrey—Staff, Board of Governors Prepared as a staff paper in early 1979 The decline in the foreign currency value of the single-price equations to fully specified structur­ dollar over the past two years and the increase al models in which it is possible to assess the in U.S. price inflation more recently have raised price effects of a depreciation under alternative questions concerning the extent to which the assumptions about macroeconomic policy. The dollar depreciation has raised U.S. prices. A second approach is general-equilibrium anal­ number of estimates of the impact of changes ysis, which treats the exchange rate as deter­ in exchange rates on U.S. domestic prices have mined endogenously and allows for consid­ been made by the staff of the Board of Gover­ eration of both the independent price effects of nors and by others. This paper surveys and factors that caused the exchange-rate change and analyzes both specific estimates that have been the feedbacks from changes in domestic prices made and models that are capable of addressing and other variables to the exchange rate itself. this question. In this framework, price changes should be Two basic analytical approaches are identi­ viewed as associated with rather than directly fied. The first is partial-equilibrium analysis, caused by changes in exchange rates. which treats the exchange rate as determined The study also illustrates how the estimated exogenously and includes the direct and indirect sensitivity of U.S. prices to changes in the effects of exchange-rate changes on domestic exchange rate can vary depending upon (1) the prices. Models using this approach range from manner in which the dollar’s average foreign Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 Federal Reserve Bulletin □ April 1979 exchange value is measured, (2) the assumed assumption that U.S. gross national product impact of exchange rate changes on oil prices, would have followed the same path in the ab­ and (3) the macroeconomic policy response to sence of the depreciation. If the depreciation is the depreciation. sustained, its eventual full impact could raise Based on an assessment of the empirical work prices by 2-1/4 to 2-2/3 percent above the level and models surveyed, the authors conclude that they otherwise would have been, depending the depreciation of the dollar in 1977 and 1978 upon the extent to which the recent oil price had raised the level of U.S. consumer prices increases can be associated with the deprecia­ by 1 percent by the end of 1978, under the tion. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

307 Industrial Production Released for publication April 13 a large rise in output of transit equipment. Industrial production increased an estimated 0.8 Business equipment production in March was percent in March, after two months in which 8.6 percent above that of a year earlier. the level of total output was almost unchanged. Production of materials advanced 1.0 percent Advances were widespread among products and in March, after small declines in February and materials. Rebounds from the effects of weather January that were due in part to weather and contributed significantly to substantial increases other production problems. Output of durable in production of motor vehicles and parts, steel, materials increased sharply in March, reflecting and coal. These increases accounted for a large increases in basic metals and in parts for equip­ part of the rise in the total index. Production ment and consumer durable goods. Coal pro­ in March was 0.9 percent higher than that of duction rose significantly but was below late December 1978, equivalent to an annual rate 1978 levels. of growth during the first quarter of 3.5 percent. Seasonally adjusted, ratio scale, 1967=100 At 152.2 percent of the 1967 average, the index for March is 8.0 percent above that of a year earlier. Output of consumer goods increased 0.8 per­ cent in March, reflecting a rebound in automo­ tive products, a moderately large increase in home goods, and a modest gain in consumer nondurable goods such as food. The rate of auto assemblies increased about 6 percent to an an­ nual rate of 9.4 million units. Over the first quarter of 1979 output of home goods, including appliances, TVs, carpeting, furniture, and mis­ cellaneous items, has risen sharply, but the level of output in March was only modestly above that of last fall. Production of business equipment advanced moderately in March, as it had in the two preceding months, with contin­ ued strength evident in the output of manufac­ 1973 1975 1977 1979 1973 1975 1977 1979 Federal Reserve indexes, seasonally adjusted. Latest figures: turing, power, and commercial equipment and March. Auto sales and stocks include imports. 1967 == 100 Percentage change from preceding month to— Percentage change Industrial production 1979 1978 1979 3/78 to Feb.p Mar.e Oct. Nov. Dec. Jan. Feb. Mar. 3/79 Total .............................. 151.0 152.2 .6 .6 .9 .0 .1 .8 8.0 Products, total ................... 149.7 150.7 .3 .5 .9 .2 .2 .7 6.4 Final products ................ 146.2 147.3 .3 .3 .8 .2 .2 .8 6.0 Consumer goods ......... 150.7 151.9 .1 .3 .6 .0 .1 .8 4.1 Durable .................. 161.0 164.1 .8 .1 .1 -.6 .1 1.9 4.2 Nondurable ............. 146.6 147.0 -.1 .3 1.0 .3 -.1 .3 4.0 Business equipment ... 170.1 171.0 .7 .2 .9 .6 .2 .5 8.6 Intermediate products __ 162.9 163.4 .6 .8 1.6 .3 .4 .3 7.9 Construction supplies 161.7 162.0 .9 1.3 1.1 .2 .3 .2 9.5 Materials ............................. 153.0 154.6 1.1 .9 .7 -.3 -.2 1.0 10.5 pPreliminary. eEstimated. Note. Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 Statements to Congress Statement by J. Charles Partee, Member, Board this end it has favored a phase-out of rate ceiling of Governors of the Federal Reserve System, regulations over some reasonable period—say before the Commerce, Consumer, and Mone­ five years or so. tary Affairs Subcommittee of the Committee on In considering the actions that can be taken Government Operations, U.S. House of Repre­ by the federal financial regulators to move sentatives, March 22, 1979. toward a less constrained deposit ceiling rate structure, I believe it is necessary to understand I am pleased to testify this morning on behalf the institutional and legislative framework in of the Federal Reserve Board concerning the which the current structure was originally es­ administration of deposit rate ceilings and their tablished. Developments over the past 13 years effects on the rate of return available to small underscore the complexity of the conflicting savers. It has been nearly 13 years since the issues surrounding Regulation Q-type ceilings, Congress mandated the establishment of a coor­ which include not only equity for the small saver dinated set of deposit rate ceilings by the federal but also the adequacy of mortgage credit flows, financial regulatory agencies. Most economists competitive balance among various types of believe that these ceilings are anticompetitive— depositary institutions, and the financial strength amounting to price fixing for the depositary in­ and viability of some institutions. The financial stitutions—and that they have a particularly regulatory agencies have been forced, both by inequitable impact on the small saver. More­ law and economic necessity, to attempt to bal­ over, though deposit rate ceilings may success­ ance these conflicting goals, and hence have fully restrict competition among depositary in­ been required to make trade-offs. stitutions, when interest rates are high they In mid-1966, as interest rates rose sharply, cannot protect the institutions as a group from many thrift institutions faced sizable deposit exposure to loss of a significant amount of outflows for the first time in the postwar period, savings business to open market instruments when consumers shifted their savings to higherattractive to the small saver. yielding market investments and commercial Even though market developments are rapidly bank accounts. Savings and loan associations undermining the efficacy of deposit rate ceiling and mutual savings banks thus faced the difficult regulations, many of the factors that caused the task of trying to meet the competition in deposit Congress to establish the framework for such markets while their earnings were constrained regulations in 1966 are still at work. Savings by portfolios of long-term, slowly amortizing and loan associations and mutual savings banks, mortgage assets that, on average, provided a net because of constraints on the kinds of assets they return not much higher than the rates paid on hold, are still unable to pay market-oriented deposits at some commercial banks. Commer­ rates of return on all deposit liabilities during cial banks were not so hampered because their periods of high interest rates. Before the thrift portfolios were diversified, with an average ma­ institutions can pay such rates, without jeopar­ turity considerably shorter than that of thrift dizing the financial solvency and stability of assets. The rates of return on commercial bank individual institutions, reform of their asset portfolios were thus more responsive to market powers will be necessary. Nevertheless, the yields and gave the banks greater flexibility to board believes it important to make progress pay competitive rates on deposits. With the whenever possible to restore rate flexibility to slackening in deposit flows at thrift institutions, the institutional deposit structure, and toward residential mortgage lending was sharply cur- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 309 tailed at these institutions, and some savings and strengthened again, reflecting in large measure loan associations and mutual savings banks the increasing average return on assets as port­ faced the specter of outflows that they could not folios turned over and higher-yielding mort­ readily meet. It was in this environment that gages were acquired. The resultant improve­ the Congress enacted interest rate control legis­ ment in the financial condition of thrift institu­ lation (Public Law 89-597) in the fall of 1966, tions permitted the regulatory agencies to in­ authorizing the financial regulatory agencies to crease deposit rate ceilings; however, thrift establish an interrelated structure of deposit rate earnings remained a constraint on the magnitude ceilings. of ceiling-rate adjustments. Even though the Commercial bank earnings were not then— individual increases in maximum rates payable nor are they now—a limiting factor in the regu­ on deposits were moderate, they were followed lator’s ability to set maximum rates payable on by significant reductions in the profitability of deposits. Thus, when establishing the initial savings and loan associations and mutual sav­ schedule of deposit rate ceilings in 1966, the ings banks. And because the ceiling adjustments financial regulatory agencies attempted to deter­ were moderate, growth of deposits subject to mine the maximum rates that thrift institutions rate ceilings remained depressed as long as the could afford to pay, given their portfolio returns. yield on alternative market instruments contin­ This schedule set the thrift institution ceilings. ued high. The maximum rates payable by commercial Changes in regulatory ceilings have taken two banks were then established at levels up to 1 forms. Ceiling rates on existing account cate­ percentage point below the thrift deposit ceil­ gories have been increased, and new deposit ings. This arrangement was intended to give instruments have been introduced. Of these ac­ savings and loan associations and mutual sav­ tions, new deposit instruments have been by far ings banks a premium or differential to help the most important. In 1970, 1973, 1974, and offset their competitive disadvantage vis-a-vis 1978 the federal regulatory agencies introduced commercial banks—a disadvantage that re­ new longer-term time certificates with relatively sulted, in part, from their inability to offer a modest minimum denominations, in each in­ full range of deposit and lending services to their stance at ceiling rates above those prevailing on predominantly consumer customers. existing accounts. This approach limited the At the time of enactment, deposit rate control cost impact of ceiling-rate increases. The higher legislation was viewed as a temporary but nec­ rate on the new certificates was paid only to essary measure to protect the short-run viability those depositors willing to give up some liqui­ of the thrift industry and to encourage an ade­ dity for additional yield. Cost increases occurred quate flow of credit to the mortgage market. In only as such deposits expanded, in contrast to this spirit, both the initial legislation and subse­ increases in passbook ceiling rates, which would quent renewals have been of short duration, apply to both new and existing accounts. The never more than two years. Thus, every Con­ 1973 increase in the maximum rate payable on gress since 1966 has reconsidered deposit rate passbook accounts, for example, led to a sharp ceilings, as will this Congress when the present reduction in thrift earnings with little increase authority expires at the end of 1980. in deposit growth. Thus, the desire of small Since 1966, the ceiling-rate structure has been savers for a short-term deposit instrument pay­ revised a number of times. Generally, such ing market-oriented rates of return conflicts with action was precipitated by periods of disinter­ the necessity to permit the institutions to main­ mediation when market interest rates rose well tain and attract deposits in an environment of above the deposit rate ceilings. The pressure of high and rising market rates, without putting higher market yields required upward adjust­ undue pressure on earnings. ments in ceiling rates if the institutions were The introduction of successively longer-term to be able to compete for deposits and sustain certificates has dramatically changed the matu­ the flow of residential mortgage credit. rity structure of deposit liabilities of thrift insti­ These upward adjustments followed periods tutions. When rate ceilings went into effect in during which thrift institution earnings had 1966, 85 to 90 percent of thrift deposits were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 Federal Reserve Bulletin □ April 1979 in passbook form. By mid-1978, only one-third have attracted more than $9.5 billion, and it is to one-half of total deposits outstanding were a reasonable presumption that a sizable share in passbook accounts. Since savings and loan of this flow might have gone to or remained associations and mutual savings banks hold in depositary institutions if deposit rate ceilings predominantly long-term assets, this maturity had been more competitive. lengthening has been desirable. Substantial In late 1977 and early 1978, deposit inflows early withdrawal penalties have helped ensure began to slacken as market rates of interest the stability of these longer-term deposits in moved above regulatory ceilings. Recognizing subsequent periods of rising rates, blunting po­ the threat of increasing disintermediation arising tential disintermediation. from the growing public awareness of deposit Since ceilings on thrift institution accounts alternatives, the financial regulatory agencies on were first imposed, there has been only one brief June 1, 1978, introduced the six-month money period in which small savers were able to earn market certificate. This instrument represented a market-determined rate of return on a deposit a significant change in the rate-ceiling structure, instrument. In July 1973 the regulatory agencies providing institutions with a short-term instru­ suspended ceilings on four-year time deposits ment whose ceiling varied with market rates. with denominations of $1,000 or more. Re­ The thrift institutions were thereby able to com­ flecting grave doubts about the ability of thrift pete for funds during periods of high interest institutions to meet such market competition rates, and thus to sustain residential mortgage without severe financial difficulties, the Con­ credit flows at relatively high levels. gress within three months passed a resolution A minimum denomination of $10,000 was terminating the experiment and mandating the established on the money market certifi­ reimposition of ceiling rates on any time account cate—the same as is required on six-month of less than $100,000. At the end of 1975, in Treasury bills to which the rate ceiling is tied— order to protect thrift institutions against the since it was considered that depositors with possibility of other regulatory actions that might relatively large amounts at stake would be the unduly threaten their competitive position, the ones most likely to shift into open-market in­ Congress enacted legislation (Public Law 94- struments. The new certificate has proven to be 200) prohibiting the financial regulatory agen­ extraordinarily popular, providing many savers cies from reducing ceiling-rate differentials on with their first investment bearing a market-deall account categories in existence at that time termined rate of return. But this new instrument without the approval of both Houses of Con­ also has been a very costly source of funds for gress. Both of these congressional actions made the institutions. Even with the $10,000 mini­ it abundantly clear that protection of thrift insti­ mum denomination, the board staff estimates tutions and concern for the mortgage market that about half of the $116 billion of money were still the dominant factors to be considered market certificates outstanding have remained in in determining the structure of ceiling rates. lower-cost passbook or fixed-ceiling time ac­ Meanwhile, the small saver has become in­ counts. Indeed, the developing earnings pres­ creasingly aware of alternative investments that sure on savings and loan associations and mu­ pay returns well in excess of deposit rate ceil­ tual savings banks was a major motive underly­ ings when market yields are high. The public ing the recent regulatory action to reduce some­ has learned the relative ease with which market what the ceiling rates paid on money market securities—particularly Treasury and agency certificates. This was only the second time since issues—can be purchased. Moreover, innova­ 1966 that the regulatory authorities have re­ tive instruments have been developed to attract duced the ceiling rate on an account category, the deposits of the small saver, such as money the first occurring in 1973 when the Congress market mutual funds and unit investment trusts. mandated an end to the “wild card” experi­ Shares in these funds are ordinarily quite liquid, ment. bear market rates of return, and are often avail­ Lowering the minimum denomination on the able in minimum denominations of $1,000 or money market certificate or taking any other less. In the last six months, such mutual funds action to provide more attractive deposit instru­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 311 ments to the saver with less than $10,000, of cies in recent weeks have been analyzing and course, would serve to heighten the earnings evaluating a large number of such alternatives pressure on thrift institutions. After 13 years of in an effort to develop a more attractive deposit ceilings on deposit rates, the same set of prob­ instrument for the small saver, without putting lems prevailing in 1966 still constrains the op­ undue pressure on earnings of thrift institutions. tions available to the regulators to increase rates It is the board’s hope that constructive action of return paid to small savers. The earnings of in this area can soon be taken. thrift institutions are already being squeezed by The chairman of this subcommittee, in his their effort to compete for funds in a high letter inviting the board to testify, asked what interest rate period. Even though the average unilateral actions the Federal Reserve could return on mortgage portfolios at thrift institu­ legally take to give small savers a more nearly tions is more than 2Vi percentage points higher market-determined rate of return on their sav­ than in 1966, inflation-induced increases in ings. The board, after consultation with the market rates have amounted to more than 3V2 other regulatory agencies, has the authority to percentage points in short-term markets and create new deposit categories for member about 4 percentage points in intermediate-term banks—bearing any deposit rate ceiling believed markets over the same period. And, with small to be in the public interest—where unique char­ savers’ increased awareness of alternative mar­ acteristics or conditions exist. In 1977 the board ket instruments, the potential threat of disinter­ used such authority to create the new time mediation is even greater today than when ceil­ deposit for individual retirement and Keogh ing rates were first introduced. accounts to accommodate the congressional ob­ Consumer groups and some members of the jective in the Employee Retirement Income Se­ Congress have correctly argued that the existing curity Act of 1974. I am also advised that, after ceiling-rate structure has placed the small saver consultation, the board could raise the ceiling at an increasing disadvantage. Growing senti­ rate for member banks on any deposit category ment for relief for the small saver has been created since the 1975 enactment of Public Law voiced simultaneously with mounting pressure 94-200, or reduce the minimum denomination by thrift institutions to curb the rising cost of on any member-bank account category. This their deposit funds and concern that increasing would include the money market certificate. deposit costs would be reflected in higher mort­ While the board thus could take action on its gage rates. Not only the consideration of equity own to create an attractive instrument for mem­ for the small saver but also the growing threat ber banks to offer to the small saver, we are of disintermediation indicates to us that some aware that such unilateral action would risk regulatory action is becoming imperative. A shifts of funds from thrift institutions, thereby wide range of suggestions have been made to threatening the flow of mortgage credit. give the consumer more attractive deposit in­ Regardless of what actions the regulatory struments. For example, some have suggested agencies may take in the period just ahead, the a reduction in the minimum denomination on asset characteristics of savings and loan associ­ the money market certificate, perhaps with a ations and mutual savings banks will still con­ ceiling rate that floats at some fixed differential strain their ability to pay substantially higher below the six-month Treasury bill rate. Another rates on deposits without seriously threatening alternative might be to introduce a small-de- the viability of some institutions. When infla­ nomination long-term certificate whose ceiling tionary pressures moderate, and market interest either floats with longer-term market rates or is rates decline, thrift institutions will be in a much fixed at a reasonably competitive level. Chair­ better position to compete. Over the longer run, man Reuss of the House Banking Committee however, any depositary institution that spe­ has recently suggested a small-denomination cializes in fixed-rate mortgages is likely to re­ savings instrument, with attractive liquidity main vulnerable to the pressures of disinterme­ characteristics, whose maximum return to the diation, which include the risks of illiquidity, saver would rise the longer it is held. insolvency, and possible forced merger. As I I want to assure you that the regulatory agen­ have noted, these risks are being heightened by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 Federal Reserve Bulletin □ April 1979 financial innovations facilitating the acquisition associated with extending fixed-rate long-term by small savers of nondeposit instruments bear­ credit when their cost of funds fluctuates. Re­ ing market rates of return. strictions prohibit most savings and loan associ­ Regardless of what actions the regulatory ations and mutual savings banks from offering agencies may take in the period just ahead, the variable-rate mortgages (VRMs). The board be­ asset characteristics of savings and loan associ­ lieves that congressional authorization of na­ ations and mutual savings banks will still con­ tionwide VRMs, with provisions to assure that strain their ability to pay substantially higher the mortgage rate varies with market rates in rates on deposits without seriously threatening such a way as to protect consumer interests, the viability of some institutions. When infla­ would allow thrift and other institutions to build tionary pressures moderate, and market interest up asset portfolios providing earnings more rates decline, thrift institutions will be in a much flexibly attuned to market developments. Over better position to compete. Over the longer run, time, this would eliminate the major constraint however, any depositary institution that spe­ facing the financial regulatory agencies in pro­ cializes in fixed-rate mortgages is likely to re­ viding more equitable returns to all savers. main vulnerable to the pressures of disinterme­ In addition, the board recommends that the diation., which include the risks of illiquidity, Congress consider exempting federally insured insolvency, and possible forced merger. As I depositary institutions from anachronistic state have noted, these risks are being heightened by usury ceilings on residential mortgage rates in financial innovations facilitating the acquisition view of the compelling circumstances that cur­ by small savers of nondeposit instruments bear­ rently prevail. In 14 states, usury ceilings are ing market rates of return. currently below free-market mortgage yields. If In the board’s view, these problems can be our institutional lenders are restricted from eliminated only if the Congress acts to liberalize earning market rates of return on assets, then the asset powers of thrift institutions. Increas­ they cannot be expected to pay market rates of ingly in recent years, banks and other financial return on deposit liabilities. This is the funda­ intermediaries have insisted that their long-term mental problem that impedes progress toward loan contracts include provisions for rate ad­ unconstrained institutional competition for justments keyed to some index of market rates. small-depositor funds—an outcome that the This stance reflects their desire to avoid the risks board has long supported and continues to seek. Statement by Philip E. Coldwell, Member, FOMC meetings and that individual participants Board of Governors of the Federal Reserve at such meetings and the views they express be System, before the Domestic Monetary Policy identified. The two bills differ in that H.R. 424 Subcommittee of the Committee on Banking, would require the public release of the minutes Finance and Urban Affairs, U.S. House of five years after the meeting to which they relate, Representatives, April 4, 1979, while H.R. 2307 would require such release after three years. I am pleased to appear before this subcommittee The board sympathizes with the concerns that on behalf of the Board of Governors to testify underlie these proposals and has no objection on proposed legislation dealing with the public to publication of such minutes provided it is release of Federal Open Market Committee made clear in legislation that no portion of the (FOMC) minutes, the terms of office of the minutes may legally be released prior to a spe­ chairman and vice chairman of the board, and cified minimum period of at least three years an increase in the number of directors at the and provided that references to sensitive inter­ Federal Reserve Banks. national financial developments can be screened Two bills, H.R. 424 and H.R. 2307, have by the FOMC and withheld for additional pe­ been introduced to amend the Federal Reserve riods, if that is deemed advisable in the national Act to require that detailed minutes be kept of interest. The public already receives very cur­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 313 rent information on the FOMC through a policy randa of discussion would be required was an­ record of each meeting, which normally is pub­ other consideration underlying the FOMC deci­ lished with a delay of about a month. This sion to discontinue the document in the spring record summarizes the economic information of 1976. At the same time, the FOMC recog­ available to committee members, the policy nized its obligation to provide thorough infor­ discussion, and the factors influencing the views mation on its decisions, and its staff was in­ of members. The votes of all FOMC members structed to expand greatly the policy record are recorded. Information on current monetary prepared for each meeting, whose present con­ policy is also provided to the Congress through tents I have described. the board’s reports under the new Humphrey- In the board’s judgment, it is vital that legis­ Hawkins legislation and the chairman’s frequent lation requiring the maintenance and eventual testimony before congressional committees. public release of a detailed record of FOMC Detailed minutes of FOMC meetings would not meetings contain safeguards against premature add greatly to these sources of information, disclosure of sensitive information. The board although a scholar might gain additional in­ is especially concerned about material relating sights. to international financial matters and strongly Three years ago the FOMC discontinued its urges a specific exemption of such material in longstanding practice of having its staff prepare the legislation. The law should provide that no detailed accounts for each meeting. Such re­ detailed minutes are to be released by the Fed­ ports—referred to as “memoranda of discus­ eral Reserve before the expiration of a specified sion”—were originally intended solely as inter­ period, such as three years or five years. The nal working documents, but during 1964 a de­ optimal period for withholding detailed FOMC cision was reached to make them available to minutes from public disclosure must remain a the public after a five-year lag. Delayed public matter of judgment. The board can endorse a release assured that the memoranda could pru­ three-year delay, although some board members dently continue to include a full record of would prefer five years. However, the board FOMC deliberations. Those deliberations often would also need the authority to protect infor­ involve very sensitive matters whose premature mation relating to international financial matters disclosure might have a damaging impact on for longer periods if the FOMC judged such a domestic and international financial markets and course to be in the national interest. thereby weaken the ability of the Federal Re­ It is the board’s hope that the language of serve to implement effectively its monetary pol­ the legislation would provide it with more flex­ icy decisions. Other dangers of premature dis­ ibility as to the form of the detailed minutes. closure include an inhibiting effect on the frank For example, the provision of a lightly edited exchange of views during policy debates and transcript would have the advantage of preserv­ a potential for politicizing the decisionmaking ing the full substance and flavor of FOMC process. Moreover, in the international financial meetings while holding down the heavy costs area premature release of information on ongo­ of preparing the record. We have in mind a ing negotiations and on the views and operations transcript similar to that for congressional hear­ of foreign governments could have an immedi­ ings, which are edited by participants for clarity ately adverse impact on foreign exchange mar­ and correct grammar. As a further means of kets and on the future ability of the Federal making the minutes more readable—and also to Reserve to implement its international financial moderate costs—the legal requirement for min­ responsibilities. utes might be confined to FOMC discussions Over the years there had been little demand of substance relating to economic and financial for access to the memoranda of discussion by matters and to monetary policy. Procedural and scholars, the press, or others, and the FOMC organizational matters would be incorporated by therefore questioned the desirability of continu­ reference only, as would staff briefings and ing to incur the high costs of preparing this reports on such matters. document. A growing concern that early, and I would now like to turn to the subject of possibly immediate, disclosure of the memo­ amending the Federal Reserve Act to align more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 Federal Reserve Bulletin □ April 1979 closely the terms of the chairman and vice eration with the executive branch will be chairman of the Board of Governors with that achieved as a result of the President’s ability of the President. There are currently three bills to name a new chairman at a definite time, the on this issue before the House. H.R. 2306, additional factor of associating the vice chair­ which was introduced by Chairman Mitchell, man’s term in this process would be an un­ would provide for appointment of both the needed intrusion into the insulation of the Fed­ chairman and the vice chairman of the board eral Reserve System from political pressures. at regular four-year intervals, beginning one Moreover, there is a needed continuity of ad­ year following the inauguration of the President. ministration of the board that would be inter­ H.R. 423 was introduced by Congressman rupted by simultaneous appointments of both the Hansen and is intended to clarify an ambiguity chairman and the vice chairman. This problem in the Federal Reserve Act by providing that is related to the fact that the four-year terms the chairman or vice chairman shall continue of the chairman and vice chairman are distinct to serve in that capacity after the expiration of from their longer terms as members of the the term until a successor is designated and board. confirmed. Finally, we are pleased to learn that The bills being discussed here also contain Chairman Mitchell has introduced the board’s some useful provisions that are more of a proposed legislation (H.R. 3257), which sub­ “housekeeping” nature. The board favors spe­ stantially incorporates features of both H.R. cifically authorizing the vice chairman to act 2306 and H.R. 423. temporarily as chairman in the event that the At the present time, the Federal Reserve Act chairman is temporarily absent and either is provides each newly designated chairman with unavailable to preside or is disabled. In addi­ a full four-year term, whether or not his prede­ tion, in the event of the death, resignation, or cessor served a full term as chairman. This permanent incapacity of a chairman, the vice process leaves to chance the point in time during chairman should be empowered to act as chair­ a President’s term when the President is able man until a new chairman is named by the to designate a new chairman. Thus, proposals President. to align the term of the chairman in some way Finally, the board favors clarifying an ambi­ with the term of the President have been under guity in the Federal Reserve Act with respect consideration by the Congress for a number of to situations in which the term of a chairman years. or vice chairman has expired but no successor The board believes that there is a sound basis has been named. In such situations the board for closer phasing of the chairman’s term with would make explicit in the act that the outgoing that of the President, and therefore favors mak­ chairman or vice chairman may continue to ing the four-year term of the chairman begin serve until a successor has been designated and one year following the inauguration of the Pres­ confirmed. Adoption of this provision would be ident. By providing a lag of one year between in conformity with a similar provision in the the commencement of the President’s term and act that allows board members, upon the expi­ the chairman’s term, the board believes that the ration of their terms, to continue serving until designation of a chairman is not likely to their successor is confirmed. become entangled in presidential election poli­ Finally, Mr. Chairman, the board is pleased tics and yet it will allow the President the widest to learn that H.R. 3257, the legislation that you possible choice in selecting a candidate whose introduced on March 27, would increase the views are compatible with his own. The board, number of class C directors of Federal Reserve however, does not favor aligning the vice Banks from three to six. chairman’s term with that of the President in As indicated in Chairman Miller’s letter of a similar manner. The board believes extending February 22, which transmitted to the Congress the principle of coterminous terms to that of the board’s request for this legislation, the board the vice chairmanship is not necessary to bring has been endeavoring for several years to about closer communication between the Pres­ broaden the representative aspect of the direc­ ident and the board. Because the desired coop­ tors of Federal Reserve Banks. These efforts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 315 have been accelerated with the passage of the staggered with one director being appointed to Federal Reserve Reform Act of 1977, which a one-year term, one director to a two-year term, urges the system to include representation from and the third director to a three-year term. among consumer, labor, and service interests By way of contrast, we note that Congress­ on the boards of directors. man Hansen has introduced a bill, H.R. 422, The board, however, has encountered diffi­ that would increase the number of Reserve Bank culties in achieving the balance contemplated directors in each of classes A, B, and C from by the Congress. Under present law the board three to four, and would increase the terms of can appoint directly the three class C directors all directors from three to four years. H.R. 422 of Reserve Banks, two of whom must also meet thereby would add one additional banker as a the qualifications to serve as chairman and dep­ director, one additional director with the res­ uty chairman of the board. The number of class tricted qualifications required of a class B direc­ C vacancies that occur in any year is further tor, and only one additional class C director to limited since directors are appointed for three- be appointed by the Federal Reserve Board. It year terms. should be noted that the board has little or no In considering this problem, the board has control over nominations or elections of class concluded that, in order to implement the Fed­ A and B directors. eral Reserve Reform Act of 1977 as expedi­ While both approaches would increase by tiously as possible, additional legislation is de­ three the number of directors on each Reserve sirable to increase the number of class C direc­ Bank board, the board believes that its legisla­ tors at each Reserve Bank from three to six. tive proposals would go further in implementing Enactment of this legislative recommendation the Federal Reserve Reform Act by providing would permit the board to appoint immediately for all three new additions to be representative three new class C directors at each Reserve of the more diverse occupational categories Bank. The terms of office for these new directors comprising class C directorships. would be three years, but initially would be This concludes my testimony, Mr. Chairman. Statement by J. Charles Partee, Member, Board The federal financial regulatory agencies have of Governors of the Federal Reserve System, recently been exploring ways that would reduce before the Subcommittee on Financial Institu­ the burden of deposit rate controls on small tions of the Committee on Banking, Housing savers and, at the same time, comply with the and Urban Affairs, U.S. Senate, April 11, intent of the Congress in establishing and re­ 1979. newing these controls. We believe that the regu­ latory actions proposed last week would signifi­ I am pleased to testify this morning on behalf cantly improve the depositary options available of the Federal Reserve Board concerning meas­ to small savers without threatening the viability ures that would increase the rates of return of the thrift industry. available on small-denomination deposit ac­ Before discussing these proposals and the two counts. The board has long advocated the grad­ resolutions in detail, I believe it appropriate to ual removal of deposit rate ceilings, recognizing review briefly the institutional, economic, and that they are an impediment to free competition legislative constraints that impinge on regula­ and that they have had a particularly inequitable tory decisions concerning deposit rate ceilings. impact on small savers. The two resolutions Although market developments are rapidly un­ before this subcommittee would help alleviate dermining the efficacy of these ceilings, many these problems, but the board cannot at this time of the factors that initially led the Congress to support a proposal that would lower the mini­ establish this regulatory framework are still at mum denomination on money market certifi­ work. A review of these constraints is therefore cates to $1,000, for reasons that I will explain necessary to an understanding of the regulatory shortly. decisions that are currently at issue. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 Federal Reserve Bulletin □ April 1979 The fundamental constraint is that thrift insti­ this spirit, both the initial legislation and the tutions still cannot pay market-oriented rates of subsequent renewals have been for short peri­ return on all their deposit liabilities during peri­ ods, never more than two years. Thus, every ods of high interest rates. Their inability to do Congress since 1966 has had to reconsider the so results from restrictions that limit their in­ need and justification for deposit rate controls, vestments principally to long-term, fixed-rate as will this Congress when the current authority mortgages. Because of slow turnover in these expires at the end of 1980. In all, 13 votes have mortgage portfolios, the average yield on assets been taken to renew the authority for deposit of thrift institutions responds sluggishly to rate controls. changes in market conditions. For example, In two instances, moreover, congressional average returns on mortgage portfolios have actions were taken to increase the protection of risen only 2V2 percentage points since 1966, the thrift industry beyond the scope originally when deposit rate controls first were introduced, envisioned in the 1966 legislation. The first such while inflation-induced increases in short- and action followed the suspension in July 1973 of intermediate-term market interest rates have deposit rate ceilings on four-year accounts with averaged V/2 to 4 percentage points over the denominations of $1,000 or more. Barely four same period. As a result, the earnings of thrift months later, a congressional resolution man­ institutions are still squeezed whenever they try dating ceilings on all deposits under $100,000 to compete for funds by paying market rates brought an end to this experiment, and with it during periods of credit stringency. Before thrift the only period since 1966 when the institutions institutions can be expected to pay market rates were free to offer a market-oriented rate of on all their deposits, reform of their asset return to small savers. Two years later the powers will be necessary. Otherwise, the finan­ Congress again strengthened the protection of cial solvency and stability of many individual thrift institutions from the possibility of regula­ institutions may be jeopardized. tory actions that might unduly threaten their It should be emphasized that commercial competitive positions when it passed a law bank earnings have never been a limiting factor (Public Law 94-200) requiring approval by both in the regulatory decisions on deposit rate ceil­ houses of Congress prior to any reduction in ings. Banks hold a more diversified portfolio ceiling-rate differentials on accounts then in of assets whose maturities are, on average, existence. In short, whenever the Congress has considerably shorter than those of the thrift acted in the past on deposit rate controls, the institutions. The rates of return on commercial objectives of protecting the thrift industry and bank portfolios have thus been more responsive sustaining mortgage-credit flows appear to have to market yields and have given the banks overshadowed the desire to provide small savers greater flexibility to pay competitive rates on with a market-oriented rate of return. deposits. Meanwhile, small savers have become in­ In enacting and subsequently extending the creasingly aware of alternative investments that authority for coordinated deposit rate controls, pay returns well in excess of deposit rate ceil­ the Congress has repeatedly made it clear that ings when market yields are high. The public protection of the thrift institutions and concern has learned the relative ease with which market for the mortgage market should be dominant securities—particularly Treasury issues—can be considerations in establishing the structure of purchased. Moreover, innovative instruments, deposit rate ceilings on the small-denomination such as money market mutual funds and unit time and savings deposits for which banks and investment trusts, have emerged to attract the thrift institutions are in direct competition. At deposits of small savers. Shares in these funds the time controls on deposit rates first were are ordinarily quite liquid, bear market rates of enacted in 1966, this legislation was viewed as return, and often are available in minimum a temporary but necessary measure to protect denominations of $1,000 or less. In the last six the short-run viability of the thrift industry. In months, these mutual funds have attracted more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 317 than $10 billion, and it is a reasonable pre­ earn a higher yield by keeping funds on deposit. sumption that a sizable share of this flow might Finally, for savers whose main desire is a better have gone to or remained in depositary institu­ return on liquid deposits, the bonus savings tions if the rates they could pay were more account plan would offer a moderately higher competitive. yield on whatever portion of their accounts These developments make it clear that some happens to remain on deposit for a period of action needs to be taken to provide relief to the one year or more. small saver and thereby to reduce the exposure This set of proposals represents the end prod­ of the institutions to disintermediation by this uct of intensive study and discussion by the group of depositors. Yet it is also clear that such financial agencies of a wide variety of alterna­ action cannot unduly threaten the earnings of tives. Among the options that received careful thrift institutions during a period of high market consideration was the possibility of reducing the rates. One of the resolutions being considered $10,000 minimum denomination on existing today (S. Con. Res. 5) calls upon the agencies money market certificates. We also considered to provide promptly “an appropriate method introducing a new money market certificate with under which the interest rate on small savings a lower minimum and a lower ceiling. Although deposits . . . is increased equitably.” We be­ these alternatives were appealing for their sim­ lieve that the actions proposed last week meet plicity and equity, they had to be rejected be­ this requirement within the constraints I have cause of the potentially severe cost impact on noted. Recognizing the complexity and novelty thrift institutions. These cost increases would of some of the proposals, the agencies have result mainly from the shifting of funds into solicited comments for a 30-day period; the money market certificates that the institutions comments we receive should help us judge otherwise would retain in lower-cost passbook whether an appropriate balance has been struck and short-term time accounts. between the needs of small savers and the ne­ Similar reasoning leads the board to believe cessity of maintaining a viable thrift industry that it would be unwise for the Congress to and mortgage market. The board fully expects approve a resolution like S. Res. 59, which that action on these proposals can be taken requires regulatory minimum denominations of shortly after the period for public comments no more than $1,000 on any deposit whose ends in early May. ceiling rate of interest is tied to yields on U.S. In advancing this set of proposals, the agen­ government securities. This resolution would cies are seeking to provide savers with instru­ not only mandate a reduction in existing mini­ ments that bear higher returns with reasonable mum-denomination requirements on money liquidity, while limiting the increases in thrift market certificates, but it would also limit the institution costs to manageable proportions. The range of options that might need to be consid­ floating-ceiling certificate would provide a mar­ ered in future deliberations on interest rate ceil­ ket-oriented rate of return to savers who are ings. willing to commit as little as $500 for the When the money market certificate was in­ five-year period specified; depositors withdraw­ troduced last June 1, a minimum denomination ing funds after a year or so would be subject of $10,000 was established on the grounds that to a premature-withdrawal penalty that is con­ depositors with relatively large amounts at stake siderably less severe than the existing require­ would be most likely to shift into open-market ment. For savers with an uncertain investment instruments during a high rate period. The horizon, the rising-rate certificate would offer choice of $10,000 seemed particularly appro­ more flexibility in gaining access to their funds, priate since that is the minimum denomination albeit at some sacrifice in yield. After the first of six-month Treasury bills to which the rate year, there would be no penalty for premature ceiling on money market certificates is tied. withdrawal from rising-rate certificates; the Even with this restriction, the new certificate penalty would be replaced by an incentive to has attracted a huge volume of funds and has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 Federal Reserve Bulletin □ April 1979 provided many savers with their first deposit rity, coupled with the still significant penalty instrument bearing a market rate of return. But for premature withdrawal, should limit the po­ it has also been a very costly source of funds tential for massive transfers from lower-cost for the institutions. The board’s staff estimates passbook and short-term time accounts. At the that about half of the $116 billion of money same time, ceiling rates of interest somewhat market certificates outstanding at the end of below yields on Treasury issues of like maturity February represented funds that otherwise are warranted by the simplicity and convenience would have remained in lower-cost passbook or of dealing with local institutions rather than fixed-ceiling time accounts. Indeed, the mount­ going into the market for the placement of small ing earnings pressure on savings and loan asso­ savings balances. ciations and mutual savings banks resulting Of course, all of the proposals that have been from the transfer of such funds was a major advanced during the deliberations of the agen­ reason for the recent regulatory action reducing cies represent only patchwork solutions to the somewhat the maximum yields available on basic problem, which results from the fact that money market certificates. thrift institutions, by law and by regulation, Lowering the minimum denomination on invest mainly in long-term, fixed-rate assets. money market certificates would, of course, Regardless of what actions the regulatory agen­ expose the thrift institutions to greater adverse cies may take in the period just ahead, these earnings effects and could create serious prob­ portfolio characteristics still constrain the ability lems of solvency and liquidity for some institu­ of thrift institutions to pay substantially higher tions. If such action were taken, those institu­ rates on deposits without seriously jeopardizing tions choosing to offer money market certifi­ the viability of some institutions. When infla­ cates in smaller units would probably experience tionary pressures subside and market rates de­ large transfers from existing accounts. This cline, thrift institutions will be in a much better would directly increase their costs of funds, position to compete. Over the longer run, how­ and—since no additional funds for high-yielding ever, any depositary institution specializing in investments are provided by such transfers— fixed-rate mortgages will be vulnerable to the earnings would be squeezed more than at pres­ pressures of disintermediation and the attendant ent. risks of illiquidity, insolvency, and possible On the other hand, those institutions elect­ forced merger. ing not to offer smaller money market certifi­ In the board’s view these problems can be cates would face the prospect of large outflows solved only if the Congress acts to liberalize of small-denomination accounts to other institu­ the asset powers of thrift institutions. Such tions, which could create serious liquidity prob­ action would make possible a more flexible lems. Given the large number of passbook ac­ return on investments. Increasingly in recent counts with deposits of $1,000 or more, as well years, banks and other financial intermediaries as the large volume of small-denomination cer­ have insisted that their long-term loan contracts tificates scheduled to mature in the next few include provisions for rate adjustments keyed quarters, the risks of institutional dislocation to some index of market rates. This stance associated with a low minimum denomination reflects their desire to avoid the risks associated on money market certificates seem too large to with extending fixed-rate, long-term credit when bear. their cost of funds fluctuates. Most savings and The board, however, recognizes the pressing loan associations and mutual savings banks are need for a deposit instrument offering a market- prohibited currently from offering variable-rate determined yield that would be available to mortgages (VRMs). The board believes that small savers. We believe the proposed five- congressional authorization of nationwide year, floating-ceiling certificate meets this need VRMs, with provisions to assure that the mort­ without endangering the short-run viability of gage rate varies with market rates in such a way the thrift institutions. The relatively long matu­ as to protect consumer interests, would allow Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 319 thrift and other institutions to build up mortgage rently prevail. In 13 states, usury ceilings are portfolios providing earnings more flexibly at­ currently below free-market mortgage yields. In tuned to market developments. Over time, this place of these restrictions, the Congress might would eliminate the major constraint facing the wish to consider a usury ceiling for federally financial regulatory agencies in providing more insured institutions tied to an interest rate that equitable returns to all savers. is sensitive to market conditions. Without some In addition, the board recommends that the relief from existing usury restrictions, it seems Congress consider exempting federally insured unreasonable to expect our institutional lenders depositary institutions from anachronistic state to pay market rates of return on deposits when usury ceilings on residential mortgage rates in they are prevented at the same time from earning view of the compelling circumstances that cur­ market yields on their assets. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

321 Announcements Regulation E on an unsolicited basis before February 8, 1979, provided certain disclosures are made. The Board of Governors of the Federal Reserve Financial institutions may distribute unsolic­ System on March 21, 1979, issued in final form ited cards only if all of the following conditions portions of Regulation E (Electronic Fund are satisfied: Transfers) relating to consumer protection under two sections of the Electronic Fund Transfer 1. The unsolicited card is not valid for use. Act. 2. The distribution of such cards is accom­ The act directs the board to issue implement­ panied by the following disclosures of the con­ ing regulations and model disclosure clauses. sumer’s rights and liabilities that will apply if Proposed rules were issued for comment on the card is validated: December 26, 1978, to implement two sections a. Rules of the institution issuing the card of the act that became effective February 8, concerning the liability of its customers in the 1979. Proposed regulations for other sections event of unauthorized use of the card. of the act that go into effect in May 1980 will b. Telephone number at which loss or theft be issued later. of an EFT card may be reported. The act protects consumers in their use of c. Business days during which such re­ electronic fund transfer services. Electronic ports can be made. transfer services permit consumers to transfer d. Kinds of electronic fund transfers the funds without the use of checks. The use of consumer may initiate, including limits on the an EFT card is one means of effecting such frequency or dollar amounts of such transfers. transfers. EFT cards may be used by consumers e. Any charges that will be made. to withdraw cash from their accounts at auto­ f. Conditions under which the issuing in­ mated teller machines or to debit their accounts stitution will disclose information about the at the point of sale for purchases of goods or consumer’s account to third parties. services. g. Whether the issuing institution will The rules issued as part of Regulation E relate provide periodic statements or other documen­ to sections of the act that: (1) limit a consumer’s tation of transfers. liability for unauthorized use of an EFT card; h. Whether the financial institution has and (2) specify the conditions under which EFT error resolution procedures, and if so, a sum­ cards may be issued. mary of those procedures. The regulation exempts certain transfers, in­ i. Conditions under which the financial in­ cluding1 automatic transfers from savings ac­ stitution will assume liability to the consumer counts to checking accounts. Other exemptions for failure to make electronic fund transfers. may be considered later. 3. The distribution also is accompanied by Under the final regulation, a financial institu­ a clear explanation that the unsolicited card is tion may. issue to a consumer an EFT card that not valid for use, and how the consumer may is valid for use only: (1) in response to an oral dispose of the card if validation is not desired. or written request or application; (2) as a 4. The card is validated only in response to renewal of, or in substitution for, a card that the consumer’s oral or written request or appli­ has already been used or accepted; or (3) as cation for validation and after verification of the a renewal of; or in substitution for, a card issued consumer’s identity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 Federal Reserve Bulletin □ April 1979 Regulation S: Revocation tive March 30, 1979. The list supersedes the revised list of OTC margin stocks that was The Federal Reserve Board announced on issued on October 2, 1978. March 5, 1979, that it is revoking one of its Changes that have been made in the list, regulations in the ongoing program to clarify which now includes 1,220 OTC stocks, are as and simplify all of its regulations. follows: 125 stocks have been included for the The board decided to revoke Regulation S first time; 10 stocks previously on the list have (Bank Service Arrangements), which governed been removed for substantially failing to meet the board’s power to regulate and examine the requirements for continued listing; and 52 banking services performed for state-chartered stocks have been removed for reasons such as member banks by outsiders. The regulation had listing on a national securities exchange or ac­ been in effect since April 3, 1963, but a recent quisition by another firm. amendment to the Bank Service Corporation Act The list is available on request from Publica­ has made it unnecessary. tions Services, Division of Support Services, The board also adopted modified interpreta­ Board of Governors of the Federal Reserve tions to simplify present interpretations and to System, Washington, D.C. 20551. conform them to the amended Bank Service Corporation Act. The act creates an exception to the general prohibition in federal banking Proposed A ctions laws against the purchase of stock by member banks. It allows two or more banks to engage The Board of Governors has asked for public in a joint venture by investing up to 10 percent comment, through April 30, 1979, on proposed of their capital and surplus in a “bank service changes in Regulation E (Electronic Fund corporation” that provides clerical services to Transfers) that (1) would require certain disclo­ banks. sures to all consumers with EFT cards regarding their financial responsibility for the use of lost or stolen EFT cards and (2) would make these Changes in Board Staff disclosures a precondition of imposing any lia­ The Board of Governors has announced the bility. following appointments in the Legal Division, The Federal Reserve Board has extended until effective April 3, 1979. May 18 the period for public comment on a J. Virgil Mattingly, Senior Attorney, to As­ proposal before the board from the New York sistant General Counsel. Mr. Mattingly, who Clearing House Association to establish inter­ joined the board’s staff in June 1974, holds a national banking facilities. B.A. from George Washington University and A series of measures designed to help indi­ a J.D. from the George Washington University viduals obtain a higher rate of return on their Law Center. savings was proposed for public comment on Gilbert T. Schwartz, Senior Attorney, to As­ April 3, 1979, by the federal regulators of sistant General Counsel. Mr. Schwartz, who financial institutions. The Federal Home Loan joined the board’s staff in September 1974, Bank Board, the Federal Reserve Board, and holds a B.A. from Temple University, an the Federal Deposit Insurance Corporation re­ M.B.A. from the Columbia University Graduate quested comment by May 4. School of Business, and a J.D. from the Temple Federal bank supervisors on April 11, 1979, School of Law. proposed a uniform policy for determining how bank examiners should classify past due con­ sumer installment loans held by commercial Revised O TC Stock List banks. The Comptroller of the Currency, the The Federal Reserve Board has published a Federal Deposit Insurance Corporation, and the revised list of over-the-counter (OTC) stocks Federal Reserve Board requested comment on that are subject to its margin regulations, effec­ the proposal by May 18, 1979. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 323 System M embership: Florida Admission of State Banks Ocala ..............Citizens First Bank of Ocala Illinois The following banks were admitted to member­ Normal ..............Bank of Illinois in Normal ship in the Federal Reserve System during the Montana period March 16 through April 15, 1979: Billings ................Montana Bank of Billings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

325 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON FEBRUARY 6, 1979 1. Domestic Policy Directive Growth in real output of goods and services had accelerated to an annual rate of 6.1 percent in the fourth quarter of 1978, according to preliminary estimates of the Commerce Department, from a rate of 2.6 percent in the third quarter. Average prices, as measured by the fixed-weight price index for gross domestic business product, rose at an annual rate of 8.3 percent in the fourth quarter, slightly faster than the rate in the third quarter. Staff projections for 1979 suggested a marked slowing in the expansion of economic activity by the second quarter of the year and a sustained slow rate of growth during the remaining quarters. Average prices were projected to continue rising at a rapid pace, and the rate of unemployment was expected to increase somewhat from its level in the fourth quarter. The index of industrial production increased an estimated 0.6 percent in December, close to its average gain in earlier months of the year. Expansion in nonfarm payroll employment, including employment in manufacturing, continued strong in December and January. The Jan­ uary rate of unemployment, at 5.8 percent, was essentially unchanged from the previous five months. The dollar value of total retail sales expanded considerably further in December, following two months of substantial gains. After declin­ ing somewhat in November, unit sales of new automobiles picked up in December and the first 20 days of January to a pace in line with that in the July-October period. Private housing starts were at an annual rate of 2.1 million units in December and in the fourth quarter as a whole. In November, however, total sales of new and existing single-family houses declined somewhat. The latest Department of Commerce survey of business spending plans, taken in late November and December, suggested that spending Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 Federal Reserve Bulletin □ April 1979 for plant and equipment would expand 11.2 percent from 1978 to 1979. The estimated increase in 1978 was about 123A percent. Manu­ facturers’ new orders for nondefense capital goods declined 11 percent over November and December, but orders for the fourth quarter as a whole were considerably above those in the third quarter. The index of average hourly earnings of private nonfarm production workers rose at an annual rate of IOV2 percent in January; this rate of increase represented an acceleration from 8 percent in the fourth quarter and reflected in part a rise of about 9V2 percent in the minimum wage to $2.90 on January 1. The consumer price index rose at an annual rate of almost 8 percent, and average prices of producer finished goods at a rate of about IOV4 percent in the fourth quarter; both measures were up about 9 percent from December 1977 to December 1978. In early 1979 there were substantial increases in prices of many farm products and an upward adjustment in oil prices by the Organi­ zation of Petroleum Exporting Countries. In foreign exchange markets the trade-weighted value of the dollar against major foreign currencies moved generally upward after the turn of the year; by the date of this meeting the advance had about offset the sharp decline that followed the OPEC announcement on December 17 of a larger-than-anticipated increase in oil prices for 1979. The U.S. merchandise trade deficit was at an estimated annual rate of $30 billion in the fourth quarter of 1978, close to the rates recorded in the second and third quarters. In December growth of total credit at U.S. commercial banks moderated considerably further from its reduced November pace, as the expansion of bank loans slowed sharply and banks continued to liquidate holdings of securities. However, data from large banks suggested a strengthening of business loan growth in January. Out­ standing commercial paper of nonfinancial businesses continued to increase rapidly in December. The narrowly defined money supply (M-1) declined at an annual rate of IV2 percent over the December-January period.1 This further contraction appeared to reflect, among other influences, the shifts of funds from demand deposits to savings deposits associated with the recently introduced automatic transfer service (ATS) and negotiable order of withdrawal (NOW) accounts in New York State. There was 1. M l comprises private demand deposits and currency in circulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 327 virtually no growth in M-2 over the December-January period, while growth in M-3 slackened further as relatively high market interest rates continued to curb inflows of time and savings deposits subject to fixed interest rate ceilings.2 However, growth in other time deposits, including 6-month money market certificates and large-denomination certificates of deposit, remained sizable. From the fourth quarter of 1977 to the fourth quarter of 1978, M-l, M-2, and M-3 expanded about 1 V4, 8V2, and 9V2 percent, respectively; for all three monetary aggregates, growth was substantially less than it had been over the preceding year. At its meeting on December 19, the Committee had agreed that early in the intermeeting period open market operations should be directed toward attaining a weekly average federal funds rate of 10 percent or slightly higher. This objective represented a slight increase from the prevailing level. Subsequently, the objective for the federal funds rate was to be maintained within the range of 93A to IOV2 percent. In setting a specific objective for the funds rate, the Manager of the System Open Market Account was to be guided mainly by the relationship between the estimated annual rates of growth in M-1 and M-2 over the December-January period and ranges of tolerance for those two monetary aggregates of 2 to 6 percent and 5 to 9 percent, respectively. If, with approximately equal weight given to M-l and M-2, their rates of growth appeared to be significantly above the midpoints of the indicated ranges, the objective for the federal funds rate was to be raised in an orderly fashion within its range. On the other hand, the objective was to be lowered in an orderly fashion if the two-month growth rates appeared to be approaching the lower limits of the indicated ranges. Immediately following the December 19 meeting the Manager of the System Open Market Account began to seek bank reserve condi­ tions consistent with an increase in the weekly average federal funds rate to 10 percent or slightly higher, from a level around 97s percent. However, federal funds traded at somewhat higher levels around the year-end, reflecting uncertainties that affected demands for bank re­ 2. M-2 comprises M-l and commercial bank time and savings deposits other than large-denomination certificates of deposit. M-3 is M-2 plus deposits at nonbank thrift institutions (savings and loan associations, mutual savings banks, and credit unions). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 Federal Reserve Bulletin □ April 1979 serves. By late December, staff projections suggested that growth in M-2 over the December-January period would be at an annual rate well below the lower limit of the range of tolerance specified for that aggregate and growth in M-l would be in the lower portion of its range of tolerance. These developments pointed to a reduction in the objective for the federal funds rate toward the 9% percent lower limit of the specified range. However, on December 29 the Committee voted to modify its directive by calling for open market operations directed at main­ taining the weekly average federal funds rate at about 10 percent or slightly above. This action was taken in view of uncertainties sur­ rounding the interpretation of the behavior of the monetary aggregates and in light of domestic economic conditions and developments in domestic and international financial markets. On January 12 the Com­ mittee held a telephone conference to review the situation and to consider whether supplementary instructions were needed, but no change was made in the instruction to the Manager. Most market interest rates declined on balance during the intermeet­ ing period. Factors apparently contributing to this development in­ cluded a market sentiment that further tightening in monetary policy had become less likely in light of the behavior of the monetary aggregates and the better performance of the dollar in foreign exchange markets. Another influence appeared to be the recent modest growth of total business credit demands. Commercial banks raised the loan rate to prime business borrowers from IIV2 to 113A percent during the period, but a few banks later reduced the rate back to IIV2 percent. At this meeting, in conjunction with its discussion of the economic situation and outlook, the Committee reviewed its 12-month ranges for growth in the monetary aggregates. At its meeting in October 1978 the Committee had specified ranges of 6V2 to 9 percent for M-2 and 7V2 to 10 percent for M-3 for the period from the third quarter of 1978 to the third quarter of 1979. The committee also had indicated that it expected growth of M-l to be within a range of 2 to 6 percent—a range that reflected uncertainty concerning both the size and the speed of the expected shift of deposits from demand to savings accounts resulting from the introduction of ATS, and of NOW accounts in New York State. The associated range for commercial bank credit was SV2 to IV/2 percent. The Committee also had decided that growth of M-l + within a range of 5 to 7V2 percent appeared to be generally consistent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 329 with the ranges of growth for the other monetary aggregates. The ranges being considered at this meeting were for the period from the fourth quarter of 1978 to the fourth quarter of 1979. The Committee’s review of its longer-run ranges at this time was undertaken for the first time within the framework of the Full Employ­ ment and Balanced Growth (“Humphrey-Hawkins”) Act of 1978. That act, which amended section 2A of the Federal Reserve Act, requires the Board of Governors to transmit to the Congress by February 20 and July 20 of each year written reports concerning the objectives and plans of the Board and the Committee with respect to the ranges of growth or diminution of the monetary and credit aggregates for the calendar year during which the report is transmitted and, in the case of the July report, the objectives and plans with respect to ranges for the following calendar year as well. The act also requires that the written reports set forth a review and analysis of recent developments affecting economic trends in the Nation and the rela­ tionship of the plans and objectives for the aggregates to the short-term goals set forth in the most recent Economic Report of the President and to any short-term goals approved by the Congress.3 With respect to the economic situation and outlook, most members of the committee expressed little or no disagreement with the staff projection of a marked slowing in the expansion by the second quarter of 1979 and of a sustained slow rate of growth over the rest of the year accompanied by some increase in the rate of unemployment. However, a few members questioned whether a very slow pace of growth was sustainable and suggested that the onset of a recession before the end of the year, with a larger increase in the unemployment rate, was the more likely development. Other members thought that over the past few months the probabilities of the development of a recession before the end of this year had declined somewhat. It was also observed that expansion might prove to be stronger than projected by the staff, especially if businessmen believed that effective steps were being taken to moderate the rate of inflation. The members continued to anticipate a relatively rapid rise in average prices. Inflation was viewed as a distortion that could contrib­ 3. The Board’s first report under the act was transmitted to the Congress on February 20, 1979. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 Federal Reserve Bulletin □ April 1979 ute to the development of a recession, and it was noted that forecasters typically had underestimated the strength of inflationary forces. In this connection, it was observed that the economy was operating at a higher rate in relation to its potential than had been thought earlier. In contemplating ranges for the monetary aggregates for the year ahead, the Committee continued to face unusual uncertainties con­ cerning the forces affecting monetary growth. A staff analysis had suggested that shifts in funds from demand deposits to savings accounts with automatic transfer services and to the NOW accounts in New York would depress growth of M-l over the year by about 3 percentage points, but that projection was based on only a brief experience. Moreover, it appeared that the publicity associated with ATS and the sustained high level of interest rates had induced the public to reassess more generally the desirability of holding demand deposits. It was expected that such a reassessment would continue over the year ahead, reducing somewhat further the demand for M-l in relation to income as the public moved funds from demand deposits to interest-bearing assets. Significant uncertainties existed with respect to growth of M-2 and M-3 as well. It appeared that the level of market interest rates had been inducing the public to divert large amounts of funds from deposits subject to fixed ceiling rates into market instruments. The staff analysis suggested that diversions of funds would continue in the period ahead, although not in the proportions of recent months. Thus, growth of the interest-bearing deposits included in the broader monetary aggre­ gates was projected to pick up but to remain slower during 1979 than during 1978. In the Committee’s discussion, stress was placed on the importance of adopting ranges for monetary growth over the year ahead that would be consistent with a reduction in the rate of inflation, thereby reinforc­ ing the governmental actions over recent months in pursuit of that objective. It was observed that the adoption of ranges for 1979 that, after allowance for ATS, were indicative of slower monetary growth might well influence attitudes and expectations in such a way that the rate of inflation would decline significantly without an adverse effect on the rate of unemployment. In this connection, it was sug­ gested that any indication of a move toward an easing of monetary policy might change expectations so as to aggravate inflationary forces and thus increase rather than reduce the risks of a recession. It was Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 331 also suggested that lowering the ranges to a degree that contributed to the onset of a recession could lead to developments that in the longer run would be inflationary. At the conclusion of the discussion, the Committee decided both to lower the ranges for growth of the monetary aggregates over the year ahead and to widen them slightly, reflecting in part the special factors expected to influence monetary growth and the uncertainties with respect to the magnitude of their impact. For the period from the fourth quarter of 1978 to the fourth quarter of 1979, the Committee adopted a range of IV2 to AV2 percent for M-l. After allowance for a dampening effect of about 3 percentage points projected to result from the further shifts in funds from demand deposits to savings accounts with automatic transfer facilities, that range allowed for the possibility of a significant deceleration of growth from the pace of recent years. The ranges adopted for M-2 and M-3 were 5 to 8 percent and 6 to 9 percent respectively. The associated range for the growth of commercial bank credit was reduced to IV2 to IOV2 percent. It was understood that the longer-run ranges, as well as the particular aggre­ gates for which ranges were specified, would be reconsidered in July or at any time that conditions might warrant. It was also understood that short-run factors might cause growth rates from one month to the next to fall outside the ranges anticipated for the year. The Committee adopted the following ranges for rates of growth in monetary aggregates for the period from the fourth quarter of 1978 to the fourth quarter of 1979: M-l, IV2 to 4V2 percent; M-2, 5 to 8 percent; and M-3, 6 to 9 percent. The associated range for bank credit is IV2 to IOV2 percent. Votes for this action: Messrs. Miller, Volcker, Baughman, Coldwell, Eastburn, Partee, Mrs. Teeters, and Mr. Mayo. Votes against this action: Messrs. Wallich and Willes. Absent: Mr. Winn. (Mr. Mayo voted as alternate for Mr. Winn.) Messrs. Wallich and Willes dissented from this action because, with the Committee’s objective of slowing the rate of inflation in mind, they preferred to specify lower ranges for growth of the monetary aggregates. Mr. Willes believed that the range adopted for M-l, after allowance for the effects of ATS and a possible further downward shift in the public’s demand for money, repre­ sented an increase from the ranges that had been adopted during Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 Federal Reserve Bulletin □ April 1979 1978. Mr. Wallich thought that, after allowance for the expansion in repurchase agreements and Eurodollars in addition to the other forces affecting growth of M-1, the range adopted represented too much of an increase from the ranges set earlier. In the discussion of policy for the period immediately ahead, most members of the Committee favored directing operations initially toward maintaining the money market conditions currently prevailing, as indicated by a federal funds rate of 10 percent or slightly higher, but some sentiment was expressed for a slight additional firming in money market conditions. The views of the members differed primarily with respect to the influence that the incoming evidence concerning growth of the monetary aggregates should have on the objective for the funds rate later in the period before the next meeting. A few members, emphasizing the rate of inflation and the position of the dollar in foreign exchange markets, advocated an approach similar to that in the directive issued at the meeting in December; that directive instructed the Manager to vary the objective for the federal funds rate within its range more quickly in response to relatively high than to relatively low rates of monetary growth. A few others, emphasizing the uncertainties in the outlook for domestic economic activity and for employment and the weakness of monetary growth over recent months, preferred a symmetrical approach in which the objective for the funds rate would be changed no more promptly in response to relatively high than to relatively low rates of monetary growth. A number of members suggested that, in any event, the Committee consult again before any change was made in the objective for the federal funds rate. The Committee decided to instruct the Manager to direct open market operations toward maintaining the weekly average federal funds rate at about the current level, provided that over the February-March period the annual rates of growth of M-1 and M-2, given approximately equal weight, appeared to be within ranges of 3 to 7 percent and 5 to 9 percent, respectively. The Committee agreed that if growth of M-1 and M-2 for the two-month period appeared to be outside the indicated limits, the Manager was promptly to notify the Chairman, who would then consult with the Committee to determine whether the situation called for sup­ plementary instructions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 333 The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that in the fourth quarter of 1978 growth in real output of goods and services picked up sharply from the reduced rate in the third quarter. In December, as in the preceding two months, the dollar value of total retail sales expanded substantially, and industrial production and nonfarm payroll employment rose considerably further. Employment continued to grow in January, and the unemployment rate, at 5.8 percent, was virtually the same as in the final months of 1978. Over recent months, broad measures of prices and the index of average hourly earnings have continued to rise rapidly. The trade-weighted value of the dollar against major foreign currencies has tended upward since the turn of the year, returning to about its level in mid-December prior to the OPEC announcement of increased oil prices. The U.S. trade deficit in the fourth quarter of 1978 was at about the same rate as in the second and third quarters. M-l increased little in December and appears to have declined in January, in part because of the continuing effects of the introduction of the automatic transfer service (ATS) on November 1, and M-2 and M-3 grew at relatively slow rates. With market interest rates relatively high, inflows to banks of the interest-bearing deposits included in M-2 slowed sharply, and inflows of deposits to nonbank thrift institutions slackened further. Over the year from the fourth quarter of 1977 to the fourth quarter of 1978, M-l, M-2, and M-3 grew about l lA, 8^2, and 9V2 percent, respectively. Most market interest rates have declined on balance in recent weeks. Taking account of past and prospective developments in employment, unemployment, production, investment, real income, productivity, inter­ national trade and payments, and prices, it is the policy of the Federal Open Market Committee to foster monetary and financial conditions that will resist inflationary pressures while encouraging moderate economic expansion and contributing to a sustainable pattern of international trans­ actions. The Committee agreed that these objectives would be furthered by growth of M-l, M-2, and M-3 from the fourth quarter of 1978 to the fourth quarter of 1979 within ranges of IV2 to 4Vi percent, 5 to 8 percent, and 6 to 9 percent, respectively. The associated range for bank credit is IV2 to IOV2 percent. These ranges will be reconsidered in July or 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 the program for supporting the foreign exchange value of the dollar and to developing conditions in domestic financial markets. In the period before the next regular meeting, System open market operations are to be directed at maintaining the weekly average federal funds rate at about Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 Federal Reserve Bulletin □ April 1979 the current level, provided that over the February-March period the annual rates of growth of M-1 and M-2, given approximately equal weight, appear to be within ranges of 3 to 7 percent and 5 to 9 percent, respectively. If growth of M-1 and M-2 for the two-month period appears to be outside the indicated limits, the Manager will promptly notify the Chairman, who will then consult with the Committee to determine whether the situation calls for supplementary instructions. Votes for this action: Messrs. Miller, Volcker, Baughman, Eastburn, Partee, Mrs. Teeters, Messrs. Wallich, Willes, and Mayo. Vote against this action: Mr. Coldwell. Absent: Mr. Winn. (Mr. Mayo voted as alternate for Mr. Winn.) Mr. Coldwell dissented from this action because he preferred to direct open market operations early in the coming period toward a slight firming in money market conditions. He felt that the greatest danger currently was an intensification of inflationary pressures and that the longer-range prospects for inflation were unacceptable. Subsequent to the meeting, at the beginning of March, projec­ tions suggested that over the February-March period M-1 would grow at an annual rate moderately below the lower limit of the range of 3 to 7 percent that had been specified by the Committee and M-2 would grow at a rate just below the lower limit of its range of 5 to 9 percent. On March 2 the Committee held a telephone meeting to determine whether the situation called for supplementary instruc­ tions. In light of contradictory evidence concerning underlying trends in economic activity following the strong performance in the fourth quarter of 1978, Chairman Miller recommended that the Manager be instructed to continue to aim for a weekly average federal funds rate of about 10 percent or slightly higher. The members concurred in the Chairman’s recommendation. By unanimous vote, the Committee modified the domestic policy directive adopted at its meeting on February 6, 1979, to call for continu­ ance of open market operations directed toward maintaining the weekly average federal funds rate at about 10 percent or slightly above. Votes for this action: Messrs. Miller, Volcker, Black, Coldwell, Kimbrel, Mayo, Partee, Mrs. Teeters, Messrs. Wallich, and Guffey. Absent: Mr. Balles. (Mr. Guffey voted as alternate for Mr. Balles.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 335 2. Authorization for Domestic Open Market Operations At this meeting the Committee voted to set a limit of $5 billion on changes between Committee meetings in holdings of U.S. Government and federal agency securities specified in paragraph 1(a) of the authorization for domestic open market operations, effective for the period ending with the close of business on March 20, 1979. During the period since its meeting on December 19, 1978, the Committee had temporarily increased the limit specified in paragraph 1(a) in two steps, from $3 billion to $5 billion and subsequently to $6 billion until the close of business on February 6, 1979. The action to set the limit at $5 billion for the coming period was taken to provide flexibility for operations in view of the magnitude of float and other factors that might affect reserves in the weeks ahead and in view of the length of the interval until the next Committee meeting scheduled for March 20, 1979. Votes for this action: Messrs. Miller, Volcker, Baughman, Coldwell, Eastburn, Partee, Mrs. Teeters, Messrs. Wallich, Willes, and Mayo. Votes against this action: None. Absent: Mr. Winn. (Mr. Mayo voted as alternate for Mr. Winn.) 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

336 Law Department S tatu tes, regulations, in terp retatio n s, and decisions Implementation of Regulation E the consumer for the purpose of initiating elec­ tronic fund transfers. The Board of Governors has adopted in final (2) An access device becomes an “accepted form portions of Regulation E, Electronic Fund access device” when the consumer to whom the Transfers, to implement two sections of the Elec­ access device was issued: tronic Fund Transfer Act that became effective on (i) requests and receives, or signs, or uses, or February 8, 1979. authorizes another to use, the access device for Effective March 30, 1979, Regulation E is the purpose of transferring money between ac­ adopted as follows: counts or obtaining money, property, labor or services; Section 205.1—Authority, Purpose, and Scope (ii) requests validation of an access device is­ sued on an unsolicited basis; or (a) Authority. This regulation, issued by the (iii) receives an access device issued in renewal Board of Governors of the Federal Reserve Sys­ of, or in substitution for, an accepted access de­ tem, implements Title IX (Electronic Fund vice, whether such access device is issued by the Transfer Act) of the Consumer Credit Protection initial financial institution or a successor. Act, as amended (15 U.S.C. 1601 et seq.). (b) “Account” means a demand deposit (b) Purpose and Scope. In November 1978, the (checking), savings, or other consumer asset ac­ Congress enacted the Electronic Fund Transfer count (other than an occasional or incidental credit Act. The Congress found that the use of electronic balance in a credit plan) held either directly or systems to transfer funds provides the potential for indirectly by a financial institution and established substantial benefits to consumers, but that the primarily for personal, family, or household pur­ unique characteristics of these systems make the poses. application of existing consumer protection laws (c) “Act” means the Electronic Fund Transfer unclear, leaving the rights and liabilities of users Act (Title IX of the Consumer Credit Protection of electronic fund transfer systems undefined. The Act, 15 U.S.C. 1601 et seq.). Act establishes the basic rights, liabilities, and (d) “Business day” means any day on which responsibilities of consumers who use electronic the offices of the consumer’s financial institution money transfer services and of financial institu­ are open to the public for carrying on substantially tions that offer these services. This regulation is all business functions. intended to carry out the purposes of the Act, (e) “Consumer” means a natural person. including, primarily, the protection of individual (f) “Credit” means the right granted by a fi­ consumers engaging in electronic transfers. Except nancial institution to a consumer to defer payment as otherwise provided, this regulation applies to of debt, incur debt and defer its payment, or all persons who are financial institutions as defined purchase property or services and defer payment in § 205.2(i). therefor. (g) “Electronic fund transfer” means any transfer of funds, other than a transaction origi­ Section 205.2—Definitions nated by check, draft, or similar paper instrument, For the purposes of this regulation, the follow­ that is initiated through an electronic terminal, ing definitions apply, unless the context indicates telephone, or computer or magnetic tape for the otherwise: purpose of ordering, instructing, or authorizing a (a)(1) “Access device” means a card, code, or financial institution to debit or credit an account. other means of access to a consumer’s account, The term includes, but is not limited to, point-ofor any combination thereof, that may be used by sale transfers, automated teller machine transfers, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 337 direct deposits or withdrawals of funds, and munications System or other similar network that transfers initiated by telephone. is used primarily for transfers between financial (h) “Electronic terminal” means an electronic institutions or between businesses. device, other than a telephone operated by a con­ (c) Certain securities or commodities transfers. sumer, through which a consumer may initiate an Any transfer the primary purpose of which is the electronic fund transfer. The term includes, but purchase or sale of securities or commodities is not limited to, point-of-sale terminals, auto­ through a broker-dealer registered with, or regu­ mated teller machines, and cash dispensing ma­ lated by, the Securities and Exchange Commission chines. or the Commodity Futures Trading Commission. (i) “Financial institution” means a state or na­ (d) Automatic transfers from savings to demand tional bank, a state or federal savings and loan deposit accounts. Any automatic transfer from a association, a state or federal mutual savings bank, savings account to a demand deposit (checking) a state or federal credit union, or any other person account under an agreement between a consumer who, directly or indirectly, holds an account be­ and a financial institution for the purpose of cov­ longing to a consumer. The term also includes any ering an overdraft or maintaining a specified mini­ person who issues an access device and agrees mum balance in the consumer’s checking account with a consumer to provide electronic fund transfer as permitted by 12 CFR Part 217 (Regulation Q) services. and 12 CFR Part 329. Two or more financial institutions that jointly (e) Certain telephone-initiated transfers. Any provide electronic fund transfer services may con­ transfer of funds that (1) is initiated by a telephone tract among themselves to fulfill the requirements conversation between a consumer and an officer that the Act and this regulation impose on any or employee of a financial institution and (2) is or all of them. not under a telephone bill-payment or other prear­ (j) “State” means any state, territory or pos­ ranged plan or agreement in which periodic or session of the United States, the District of Co­ recurring transfers are contemplated. lumbia, the Commonwealth of Puerto Rico, or any (f) Trust accounts. Any trust account held by political subdivision of any of the above. a financial institution under a bona fide trust (k) “Unauthorized electronic fund transfer” agreement. means an electronic fund transfer from a con­ sumer’s account initiated by a person other than the consumer without actual authority to initiate Section 205.4—Issuance of Access Devices the transfer and from which the consumer receives no benefit. The term does not include any elec­ (a) General rule. A financial institution may tronic fund transfer (1) initiated by a person who issue an access device to a consumer only: (1) in response to an oral or written request or was furnished with the access device to the con­ sumer’s account by the consumer, unless the con­ application for the device;1 or sumer has notified the financial institution involved (2) as a renewal of, or in substitution for, an that transfers by that person are no longer author­ accepted access device, whether issued by the ized, (2) initiated with fraudulent intent by the initial financial institution or a successor. consumer or any person acting in concert with the (3) as a renewal of, or in substitution for, an consumer, or (3) that constitutes an error commit­ access device issued before February 8, 1979 ted by the financial institution. (other than an accepted access device, which can be renewed or substituted under paragraph (a)(2) of this section), provided that the disclosures set Section 205.3—Exemptions forth in paragraphs (d)(1), (2), and (3) of this This regulation does not apply to the following: section accompany the renewal or substitute de­ (a) Check guarantee or authorization services. vice; except that for a renewal or substitution that Any service that guarantees payment or authorizes occurs before July 1, 1979, the disclosures may acceptance of a check, draft, or similar paper be sent within a reasonable time after the renewal instrument and that does not directly result in a or substitute device is issued. debit or credit to a consumer’s account. 1. In the case of a joint account, a financial institution may (b) Wire transfers. Any wire transfer of funds issue an access device to each account holder for whom the for a consumer through the Federal Reserve Com­ requesting bolder specifically requests an access device. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 Federal Reserve Bulletin □ April 1979 (b) Exception. Notwithstanding the provisions guage: of paragraph (a)(1) of this section, a financial (1) The consumer’s liability under § 205.5, or institution may distribute an access device to a under other applicable law or agreement, for un­ consumer on an unsolicited basis if: authorized electronic fund transfers and, at the (1) the access device is not validated; financial institution’s option, notice of the advis­ (2) the distribution is accompanied by a com­ ability of prompt reporting of any loss, theft, or plete disclosure, in accordance with paragraph (d) unauthorized transfers. of this section, of the consumer’s rights and liabi­ (2) The telephone number and address of the lities that will apply if the access device is vali­ person or office to be notified in the event the dated; consumer believes that an unauthorized electronic (3) the distribution is accompanied by a clear fund transfer has been or may be made. explanation that the access device is not validated (3) The financial institution’s business days, as and how the consumer may dispose of the access determined under § 205.2(d). device if validation is not desired; and (4) The type of electronic fund transfers that (4) the access device is validated only in re­ the consumer may initiate, including any limita­ sponse to the consumer’s oral or written request tions on the frequency or dollar amount of the or application for validation and after verification transfers. The details of the limitations need not of the consumer’s identity by any reasonable be disclosed if their confidentiality is necessary to means, such as by photograph, fingerprint, per­ maintain the security of the electronic fund transfer sonal visit, or signature comparison. An access system. device is considered validated when a financial (5) Any charges for electronic fund transfers or institution has performed all procedures necessary for the right to make transfers. to enable a consumer to use it to initiate an (6) The conditions under which the financial electronic fund transfer. institution in the ordinary course of business will (c) Relation to Truth in Lending. (1) The Act disclose information about the consumer’s account and this regulation govern to third parties. (1) issuance of access devices; (7) Whether or not the financial institution will (ii) addition to an accepted credit card, as de­ provide documentation of electronic fund fined in 12 CFR 226.2(a) (Regulation Z), of the transfers, such as receipts or periodic statements, capability to initiate electronic fund transfers; and to the consumer. (iii) issuance of access devices that permit (8) Whether or not the financial institution has credit extensions only under a preexisting agree­ error resolution procedures and, if so, a summary ment between a consumer and a financial institu­ of those procedures. tion to extend the credit when the consumer’s (9) The conditions under which the financial account is overdrawn or to maintain a specified institution will assume liability for the institution’s minimum balance in the consumer’s account. failure to make electronic fund transfers. (2) The Truth in Lending Act (15 U.S.C. 1601 et seq.) and 12 CFR Part 226 (Regulation Z), Section 205.5—Liability of Consumer which prohibit the unsolicited issuance of credit for Unauthorized Transfers cards, govern (i) issuance of credit cards as defined in 12 CFR (a) General rule. A consumer is liable, within 226.2(r); the limitations described in paragraph (b) of this (ii) addition of a credit feature to an accepted section, for unauthorized electronic fund transfers access device; and involving the consumer’s account only if the (iii) issuance of credit cards that are also access access device used for the transfers is an accepted devices, except as provided in paragraph (c)(l)(iii) access device and the financial institution has pro­ of this section. vided a means (such as by signature, photograph, (d) Transitional disclosure requirements. Until fingerprint, or electronic or mechanical confirma­ May 10, 1980, a financial institution may satisfy tion) to identify the consumer to whom the access the disclosure requirements of paragraph (b)(2) of device was issued. this section by disclosing to the consumer, in a (b) Limitations on amount of liability. The written statement that the consumer may retain, amount of a consumer’s liability for an unauth­ the following terms in readily understandable lan­ orized electronic fund transfer or a series of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 339 transfers arising from a single loss or theft of the imposes lesser liability than that provided in para­ access device shall not exceed $50 or the amount graph (b) of this section, the consumer’s liability of unauthorized electronic fund transfers that occur shall not exceed that imposed under that law or before notice to the financial institution under agreement. paragraph (c) of this section, whichever is less, (c) Notice to financial institution. For purposes unless one or both of the following exceptions of this section, notice to a financial institution is apply: given when a consumer takes such steps as are (1) If the consumer fails to notify the financial reasonably necessary to provide the financial insti­ institution within 2 business days after learning tution with the pertinent information, whether or of the loss or theft of the access device, the not any particular officer, employee, or agent of consumer’s liability shall not exceed the lesser of the financial institution does in fact receive the $500 or the sum of information. Notice may be given to the financial (1) $50 or the amount of unauthorized electronic institution, at the consumer’s option, in person, fund transfers that occur before the close of the by telephone, or in writing. Notice in writing is 2 business days, whichever is less, and considered given at the time of receipt or, whether (ii) the amount of unauthorized electronic fund or not received, at the expiration of the time transfers that the financial institution establishes ordinarily required for transmission, whichever is would not have occurred but for the failure of the earlier. Notice is also considered given when the consumer to notify the institution within 2 business financial institution becomes aware of circum­ days after the consumer learns of the loss or theft stances that lead to the reasonable belief that an of the access device, and that occur after the close unauthorized electronic fund transfer involving the of 2 business days and before notice to the finan­ consumer’s account has been or may be made. cial institution. (d) Relation to Truth in Lending. (1) A con­ (2) If the consumer fails to report within 60 sumer’s liability for an unauthorized electronic days of transmittal of the periodic statement any fund transfer shall be determined solely in accor­ unauthorized electronic fund transfer that appears dance with this section if the electronic fund on the statement, the consumer’s liability shall not transfer exceed the sum of (1) was initiated by use of an access device that (i) the lesser of $50 or the amount of unauth­ is also a credit card as defined in 12 CFR 226.2(r), orized electronic fund transfers that appear on the or periodic statement or that occur during the 60-day (ii) involves an extension of credit under an period, and agreement between a consumer and a financial (ii) the amount of unauthorized electronic fund institution to extend the credit when the con­ transfers that occur after the close of the 60 days sumer’s account is overdrawn or to maintain a and before notice to the financial institution and specified minimum balance in the consumer’s ac­ that the financial institution establishes would not count. have occurred but for the failure of the consumer (2) A consumer’s liability for unauthorized use to notify the financial institution within that time. of a credit card that is also an access device but (3) Paragraphs (b)(1) and (2) of this section that does not involve an electronic fund transfer may both apply in some circumstances. Paragraph shall be determined solely in accordance with the (b)(1) shall determine the consumer’s liability for Truth in Lending Act and 12 CFR Part 226 (Reg­ any unauthorized transfers that appear on the peri­ ulation Z). odic statement and occur before the close of the 60-day period, and paragraph (b)(2)(ii) shall de­ Appendix A—Model Disclosure Clauses termine liability for transfers that occur after the close of the 60-day period. This appendix contains model disclosure clauses (4) If a delay in notifying the financial institu­ for optional use by financial institutions to facili­ tion was due to extenuating circumstances, such tate compliance with the disclosure requirements as extended travel or hospitalization, the time of §§ 205.4(a)(3), (b), and (d). Section 915(d)(2) periods specified above shall be extended to a of the Act provides that use of these clauses in reasonable time. conjunction with other requirements of the regula­ (5) If applicable state law or an agreement tion will protect financial institutions from liability between the consumer and financial institution under §§915 and 916 of the Act to the extent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 Federal Reserve Bulletin □ April 1979 that the clauses accurately reflect the institutions’ and we can prove we could have stopped someone electronic fund transfer services. from using your (card)(code) without your per­ Financial institutions need not use any of the mission if you had told us, you could lose as much provided clauses, but may use clauses of their own as $500. design in conjunction with the model clauses. The Also, if your statement shows transfers that you inapplicable portions of words or phrases in pa­ did not make, tell us at once. If you do not tell rentheses should be deleted. Financial institutions us within 60 days after the statement was mailed may make alterations, substitutions or additions to you, you may not get back any money you lost in the clauses in order to reflect the services after the 60 days if we can prove that we could offered, such as technical changes (e.g., substitu­ have stopped someone from taking the money if tion of a trade name for the word “card,” deletion you had told us in time. of inapplicable services), or substitution of lesser If a good reason (such as a long trip or a hospital liability limits in § A(2). stay) kept you from telling us, we will extend the time periods. Section A(l)—Disclosure that access device Section A(3)—Disclosure of telephone is not validated and how to dispose of device number and address to be notified in event if validation is not desired (§ 205.4(b)(3)) of unauthorized transfer (§ 205.4(d)(2)) (a) Accounts using cards. You cannot use the enclosed card to transfer money into or out of your (a) Address and telephone number. If you be­ lieve your (card)(code) has been lost or stolen or account until we have validated it. If you do not that someone has transferred or may transfer want to use the card, please (destroy it at once money from your account without your permis­ by cutting it in half). sion, call: [Financial institution may add validation [Telephone number] instructions here.] or write: (b) Accounts using codes. You cannot use the [Name of person or office to be notified] enclosed code to transfer money into or out of [Address] your account until we have validated it. If you do not want to use the code, please (destroy this Section A(4)—Disclosure of what constitutes notice at once). [Financial institution may add validation business day of institution (§ 205.4(d)(3)) instructions here.] (a) Business day disclosure. Our business days are (Monday through Friday) (Monday through Section A(2)—Disclosure of consumer’s Saturday) (any day including Saturdays and Sun­ liability for unauthorized transfers and days). Holidays are (not) included. optional disclosure of advisability of prompt reporting (§ 205.4(d)(ll) Section A(5)—Disclosure of types of available transfers and limits on transfers (a) Liability disclosure. (Tell us AT ONCE if (§ 205.4(d)(4)) you believe your (card)(code) has been lost or stolen. Telephoning is the best way of keeping (a) Account access. You may use your your possible losses down. You could lose all the (card)(code) to money in your account (plus your maximum over­ (1) Withdraw cash from your (checkdraft line of credit). If you tell us within 2 business ing)(or)(savings) account. days, you can lose no more than $50 if someone (2) Make deposits to your (checking)(or)(savused your (card)(code) without your permission.) ings) account. (If you believe your (c:ard)(code) has been lost or (3) Transfer funds between your checking and stolen, and you tell us within 2 business days after savings accounts whenever you request. you learn of the loss or theft, you can lose no (4) Pay for purchases at places that have agreed more than $50 if someone used your (card)(code) to accept the (card)(code). without your permission.) (5) Pay bills directly (by telephone) from your If you do not tell us within 2 business days after (checking)(or)(savings) account in the amounts you learn of the loss or theft of your (card)(code), and on the days you request. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 341 Some of these services may not be available or at all terminals. (2) in order to verify the existence and condi­ (b) Limitations on frequency of transfers. tion of your c%ccount for a third party, such as a (1) You may make only [insert number, e.g., credit bureau or merchant. 3] cash withdrawals from our terminals each [in­ or sert time period, e.g., week]. (3) in order to comply with government agency (2) You can use your telephone bill-payment or court orders. service to pay [insert number] bills each ([insert or time period])(telephone call). (4) if you give us your written permission. (3) You can use our point-of-sale transfer serv­ ice for [insert number] transactions each [insert time period]. Amendment to Regulation Q (4) For security reasons, there are (other) limits The Board of Governors has amended its Regu­ on the number of transfers you can make using lation Q, Interest on Deposits, to prohibit the our (terminals)(telephone bill-payment service) compounding of interest by member banks on time (point-of-sale transfer service). deposits of $10,000 or more with maturities of (c) Limitations on dollar amounts of transfers. 26 weeks whose ceiling rate of interest is equal (1) You may withdraw up to [insert dollar to the discount rate on the most recently issued amount] from our terminals each ([insert time six-month United States Treasury bills (auction period])(time you use the (card) (code)). average). (2) You may buy up to [insert dollar amount] Effective March 15, 1979, §§ 217.6 and 217.7 worth of goods or services each ([insert time are amended to read as follows: period])(time you use the (card) (code)) in our point-of-sale transfer service. Section 217.6— Section A(6)—Disclosure of charges for Advertising of Interest on Deposits transfers or right to make transfers sfc s(c s{s (§ 205.4(d)(5)) (j) Any advertisement, announcement, or so­ licitation relating to interest paid by a member (a) Per transfer charge. We will charge you bank on a time deposit of $10,000 or more with [insert dollar amount] for each transfer you make a maturity of 26 weeks at a rate not in excess using our (automated teller machines)(telephone of the rate established (auction average on a dis­ bill-payment service)(point-of-sale transfer serv­ count basis) for United States Treasury bills with ice). maturities of six months shall include a clear and (b) Fixed charge. We will charge you [insert conspicuous notice that Federal regulations pro­ dollar amount] each [insert time period] for our hibit the compounding of interest during the term (automated teller machine service)(telephone billof the deposit. payment service)(point-of-sale transfer service). (c) Average or minimum balance charge. We will only charge you for using our (automated Section 217.7— teller machines)(telephone bill-payment serv- Maximum Rates of Interest ice)(point-of-sale transfer service) if the Payable by Member Banks (average)(minimum) balance in your (checking on Time and Savings Deposits account)(savings account)(accounts) falls below [insert dollar amount]. If it does, we will charge (f) Variable rate time deposits of less than you [insert dollar amount] each (transfer) ([insert $100,000.*** Member banks may not compound time period]). interest during the term of this deposit. Section A(7)—Disclosure of account information to third parties (§ 205.4(d)(6)) Rescission of Regulation S (a) Account information disclosure. We will disclose information to third parties about your The Board of Governors, as part of its Regula­ account or the transfers you make: tory Improvement Project, has reviewed Regula­ (1) where it is necessary for completing tion S, Bank Service Arrangements, which imple­ transfers. ments the Bank Service Corporation Act. Effective Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 Federal Reserve Bulletin □ April 1979 March 10, 1979, the Board has decided to rescind (b) The Senate Committee on Banking and Regulation S as no longer necessary. Currency stated with regard to section 5 of the In a related action, the Board has decided to Act, as enacted in 1962, that the Federal supervi­ revise and update its interpretations of the Bank sory agencies “must be able to examine all of the Service Corporation Act. banks’ records, and they must be able to exercise Effective March 10, 1979, the table of contents proper supervision over all the banks’ activities, of 12 CFR Part 250 is amended by adding at the whether performed by the banks’ employees on end of the table a new heading and ihree new their premises or by anyone else on or off the section titles to read as follows: banks’ premises. This examination and this super­ Bank Service Arrangements vision cannot be frustrated by a transfer of the 250.300 Kinds of bank servicers subject to banks’ records to some other organization or by Board examination under the Bank having some other organization carry out all or Service Corporation Act. part of the banks’ functions.” (S. Rep. No. 2105, 250.301 Scope of investment authority and no­ 87th Cong. 3 (1962)). Similarly, the Committee tification requirement under the Bank on Banking and Currency of the House of Repre­ Service Corporation Act. sentatives stated that “it would obviously be un­ 250.302 Applicability of Bank Service Cor­ wise to permit banks to avoid the examination and poration Act to bank credit card ser­ supervision of vital banking functions by the vice organization. simple expedient of farming out such functions.” 12 CFR Part 250 is amended by adding a new (H.R. Rep. No. 2062, 87th Cong. 3 (1962)). section 250.30 immediately after a new heading, (c) Section 5 of the Act is not limited by its “Bank Service Arrangements,” to read as follows. terms to “bank service corporations” as defined in the Act; nor, in the Board’s opinion based on 250.300 Kinds of bank services subject to the legislative history of the Act, should such a Board examination under the Bank limitation be implied. The Board concludes that Service Corporation Act. the performance of bank services for State member Summary. The performance of bank services for banks by organizations that are not bank service State member banks is subject to the Board’s corporations is also subject to Board regulation and regulation and examination, regardless of the na­ examination. ture of the bank servicer, including servicers that (d) If the bank servicer is a national bank or are national banks; State nonmember insured a State nonmember insured bank, its performance banks; non-profit, no-stock credit card servicing of bank services for State member banks is subject organizations; and servicing subsidiaries of bank to Board regulation and examination, despite the holding companies. fact that the servicer is subject primarily to regu­ Text, (a) Since the enactment of the Bank lation and examination by one of the other Federal Service Corporation Act (the “Act”) (12 U.S.C. banking agencies. By the same token, the per­ 1861-65), the Board has on several occasions formance of bank services by a State member bank considered whether performance of “bank serv­ for a national bank or State nonmember insured ices” (as that term is defined in section 1(b) of bank is subject to regulation and examination by the Act) for State member banks is subject to the Comptroller of the Currency or the Federal regulation and examination by the Board under Deposit Insurance Corporation, respectively. The section 5 of the Act if (1) the bank servicer is purpose of section 5 of the Act is to make certain not a “bank service corporation” (as that term that the appropriate Federal banking agency will is defined in the Act), or (2) the bank servicer be able effectively to exercise its responsibilities is a bank itself. In each instance, based on the with respect to a bank subject primarily to its reasoning set forth below, the Board expressed the supervision. view that section 5 of the Act applied to any (e) It is important to note that the scope of the organization that performed bank services for State Board’s regulation and examination under section member banks, including national banks; another 5 of the Act does not extend to all affairs of the State member bank; State nonmember insured bank servicer, but only to the “bank services” banks; servicing subsidiaries of bank holding performed for a State member bank and only to companies; and non-profit, no-stock credit card the same extent as if the services were being servicing organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 343 performed by the State member bank itself on its and examine the performance of “bank services.” own premises. Thus, the scope of the Act’s notification and ex­ 12 CFR Part 250 is amended by adding a new amination requirements also is limited to “bank section 250.301 to read as follows: services.” 250.301 Scope of investment authority and no­ (d) The term “bank services” is defined in tification requirement under the Bank section 1(b) of the Act to mean “services such Service Corporation Act. as check and deposit sorting and posting, compu­ Summary, (a) The authority of State member tation and posting of interest and other credits and banks under the Bank Service Corporation Act to charges, preparation and mailing of checks, state­ invest in bank service corporations is limited to ments, notices, and similar items, or any other investments in corporations that perform “bank clerical, bookkeeping, accounting, statistical, or services” solely. similar functions performed for a bank.” (b) A State member bank is required by the Act (e) Bearing importantly upon the meaning of to notify the Board only of the performance of “bank services” is the following quotation from “bank services” for it. the Report of the Senate Committee on Banking (c) “Bank services” will not usually be re­ and Currency: “The authority to examine and garded as including legal, advisory, and adminis­ supervise banks is broad and must be vigorously trative services, such as transportation or guard exercised. At the same time sound discretion must services. be used. Banks have always employed others to Text, (a) Section 2(a) of the Bank Service Cor­ do many things for them, and they will have to poration Act (12 U.S.C. 1861-65) provides that continue to do so, and the bill is not intended to “no limitation or prohibition otherwise imposed prevent this or to make it more difficult. For by any provision of Federal law exclusively relat­ example, banks have employed lawyers to prepare ing to banks shall prevent any two or more banks trust and estate accounts and to prosecute judicial from investing not more than 10 per centum of proceedings for the settlement of such accounts. the paid-in and unimpaired capital and unimpaired Banks have employed accountants to prepare surplus of each of them in a bank service corpora­ earnings statements and balance sheets. Banks tion.” This 10 per cent investment ceiling applies have employed public relations and advertising to loans and other advances of funds, as well as firms. And banks have employed individuals or the purchase of stock. The Act, however, does firms to perform all kinds of administrative activi­ not authorize a State bank to invest in a bank ties, including armored car and other trans­ service corporation if the bank is not permitted portation services, guard services and, in many to do so under the applicable State law. cases, other mechanical services needed to run the (b) “Bank service corporation” is defined in banks’ buildings. It is not expected that the bank section 1(c) of the Act to mean “a corporation supervisory agencies would find it necessary to organized to perform bank services for two or examine or regulate any of these agents or repre­ more banks, each of which owns part of the capital sentatives of a bank, except under the most un­ stock of such corporation, and at least one of usual circumstances. The authority is intended to which is subject to examination by a Federal be limited to banking functions as such.” (S. Rep. supervisory agency.” Section 4 of the Act states No. 2105, 87th Cong. 3 (1962)). that “no bank service corporation may engage in (f) On the basis of the Act’s definition of “bank any activity other than the performance of bank services”, the limitation contained in section 4 of services for banks.” Thus, the investment author­ the Act, and the preceding quotation from the ity created by section 2(a) is limited to corpora­ Act’s legislative history, it is apparent that the term tions that are engaged solely in the provision of “bank services” is essentially limited to clerical “bank services” to banks, as that term is defined and similar services. For example, the term would in the Act. not usually be regarded as including legal, advi­ (c) In addition to its grant of investment au­ sory, and adminstrative services, such as trans­ thority, the Act also requires State member banks portation or guard services. to notify the Board within 30 days of the execution (g) Thus, State member banks generally may of a contract for “bank services” or the actual rely on the Act to justify investment only in a provision of such services, whichever occurs first. corporation that is engaged solely in performing Moreover, the Act authorizes the Board to regulate one or more of the services contained in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 Federal Reserve Bulletin □ April 1979 definition of “bank services” in section 1(b), or by “the making of a loan, or otherwise, except a service similar to one of those services, and only a payment for rent earned, goods sold and deliv­ if those services are provided solely to banks. ered, or services rendered prior to the making of Investment in a corporation providing any other such payment” (section 1(d) of the Act), the services, such as the type of services described service organization is not a “bank service cor­ in the above quotation from the Act’s legislative poration” within the meaning of section 1(c) of history, generally is not permitted on the basis of the Act. this Act, unless such services are legitimately (d) However, the Board concluded that the incidental to the provision of “bank services” by functions described above do constitute “bank that corporation. services” as defined in section 1(b) of the Act. (h) Since the notification required by section 5 Accordingly, the State member bank is required of the Act, as amended, also is based on the to notify the Board (through the appropriate Fed­ provision of “bank services,” such notification eral Reserve Bank) of the performance of the need only be provided with regard to the provision services for the bank in accordance with section of one or more of the services enumerated in 5 of the Act. section 1(b) of the Act or a service similar to one of those services. 12 CFR Part 250 is amended by adding a new Amendment to Regulation Z section 250.302 to read as follows: 250.302 Applicability of Bank Service Cor­ The Board of Governors has amended its Regu­ poration Act to bank credit card serv­ lation Z, Truth in Lending, to extend the prohibi­ ice organization. tion against surcharges to February 27, 1981. Summary. Although a non-profit, no-stock Effective March 5, 1979 § 226.4(i)(4) is service organization in which no bank has made amended to read as follows: an investment is not a “bank service corporation” No creditor in any sales transaction may impose as defined in the Bank Service Corporation Act, a surcharge. This paragraph shall cease to be that organization’s credit card servicing activities effective on February 27, 1981. are “bank services” as defined in the Act and thus subject to the notification requirement of section 5 of the Act. Amendment to Regulation BB Text, (a) The Board of Governors has consid­ ered whether the Bank Service Corporation Act The Board of Governors has amended its Regu­ (12 U.S.C. 1861-65), is applicable where a bank lation BB, Community Reinvestment, to reflect an credit card plan of a State member bank and other amendment to the Community Reinvestment Act banks used the facilities of a non-profit, no-stock of 1977 contained in the Financial Institutions service organization. Regulatory and Interest Rate Control Act of 1978 (b) The functions of the service organization that relates to financial institutions whose business include the following: (1) performing cardholder predominantly consists of serving the needs of accounting for participating banks; (2) developing military personnel who are not located within a information concerning each credit card and defined geographic area. holder, including such holder’s current balance Effective April 26, 1979, Section 228.3 is owing to the card issuing bank and the amount amended as follows: of such balance that is deliquent; (3) assisting in Paragraph (b) is revised by deleting “A” at the procedures relating to the presentation and settle­ beginning of the first sentence of the paragraph ment of drafts and credit memoranda; (4) devel­ and inserting, “Except as provided in paragraph oping procedures relating to credit card security (c) of this section, a”. control; (5) upon telephonic request, advising A new paragraph (c) is added: merchants and participating banks respecting credit authorizations above certain specified limits; and (6) compiling lists of participating merchants. (c) A State member bank whose business pre­ (c) The Board expressed the view that because dominantly consists of serving persons who are the service organization has no stock and the State active duty or retired military personnel or their member bank does not otherwise “invest” therein dependents and who are located outside of its local Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 345 community or communities, may delineate a Bank Holding Company “military community” for those customers, in and Bank Merger Orders addition to its local community or communities. Issued by the Board of Governors Provisions of this part concerning local communi­ ties shall also apply to military communities, ex­ Orders Under Section 3 cept that military communities shall be delineated of Bank Holding Company Act by a written description rather than a map. American Pioneer Life Insurance Company, Trumann, Arkansas Amendment to Rules of Organization Order Approving The Secretary of the Board has approved an Retention of Additional Shares of Bank amendment to the Board’s Rules of Organization American Pioneer Life Insurance Company, to reflect recent organizational changes. Trumann, Arkansas, a bank holding company Effective October 17, 1978, section 3 of the within the meaning of the Bank Holding Company Rules of Organization is amended as follows: Act, has applied for the board’s approval under 1. A new paragraph (c) is added to read as § 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to follows: retain additional voting shares of First National Section 3—Central Organization. Bank of Poinsett County, Trumann, Arkansas The Board’s central organization consists of the (“Bank”). following Offices, Divisions and officials; Notice of the application, affording opportunity for interested persons to submit comments and views, has been given in accordance with § 3(b) of the Act. The time for filing comments and views (c) Office of Staff Director for Federal Reserve has expired, and the board has considered the Bank Activities is responsible for overseeing the application and all comments received in light of Divisions of Federal Reserve Bank Operations and the factors set forth in § 3(c) of the Act (12 U.S.C. Federal Reserve Bank Examinations and Budgets, § 1842(c)). assisting the Board’s Committee on Federal Re­ Applicant is a one-bank holding company by serve Bank Activities, and coordinating the func­ virtue of its ownership of approximately 54 percent tions of other Board Divisions that relate to Federal of the outstanding voting shares of Bank.1 Appli­ Reserve Bank matters. cant seeks board approval to retain 1000 newly-is­ 2. Paragraphs (c) through (p) are redesignated sued shares of Bank that were acquired by its as (d) through (q). wholly-owned subsidiary, Hyneman & Associates, 3. Renumbered paragraphs (i) and (j) are Inc., Trumann, Arkansas, without the board’s amended as follows: prior approval.2 Section 3—Central Organization.*** 1. Applicant became a bank holding company on December 31, 1970, as a result of the 1970 Amendments to the Act, by virtue of its ownership of more than 25 percent of the (i) Division of Federal Reserve Bank Opera­ outstanding voting shares of Bank. Applicant also engages through subsidiaries in underwriting credit-related insurance, tions,*** provides an appraisal of Reserve Bank dealing in farm commodities, and leasing real property, pur­ communication and automation plans and propos­ suant to the provisions of section 4(c)(ii) of the Act. 2. Applicant indirectly acquired the additional shares, rep­ als and recommendations to the Board in such resenting approximately 13.3 percent of the outstanding voting areas and maintains liaison with various interested shares of Bank, in order to increase the capital of Bank. Prior parties on payments mechanism matters. to this acquisition Applicant directly owned slightly less than 50 percent of Bank’s shares, and members of the Hyneman (j) Division of Federal Reserve Bank Examina­ family, who control Applicant, owned a slightly smaller per­ tions and Budgets*** and provides certain cen­ centage of Bank’s shares. The violation did not increase the tralized financial accounting services. The Divi­ percentage of Bank owned directly and indirectly by the Hyneman family, and Applicant filed this application to retain sion also coordinates the printing and distribution the additional shares. The board, having reviewed the facts of Federal Reserve notes and is jointly responsible surrounding the violation, concludes that the violation does with the Bureau of the Mint for the production not reflect so adversely on the managerial resources of Appli­ cant as to warrant denial of the application. and distribution of coin.*** 3. All banking data are as of June 30, 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 Federal Reserve Bulletin □ April 1979 Bank, with deposits of approximately $7 mil­ a bank holding company within the meaning of lion, is the 225th largest commercial bank in the the Bank Holding Company Act, has applied for state of Arkansas and controls approximately 0.1 the board’s approval under section 3(a)(3) of the percent of total deposits in commercial banks in Act (12 U.S.C. § 1842(a)(3)) to retain certain the state.3 Bank is the smallest of seven banks voting shares of First State Bank, Manchester, competing in the relevant market, which is ap­ Iowa (“Bank”), and to acquire additional voting proximated by Poinsett County, and holds ap­ shares of Bank. proximately 7.3 percent of total market deposits. Notice of the application, affording opportunity Inasmuch as the proposal involves the retention for interested persons to submit views and recom­ of shares in a bank that Applicant controlled at mendations, has been given in accordance with the time the shares were acquired, it appears that section 3(b) of the Act (12 U.S.C. § 1842(b)). the retention of such shares would involve neither The time for filing views and recommendations an expansion of Applicant nor an increase in the has expired, and the board has considered the banking resources controlled by it. In the board’s application and all comments received in light of view Applicant’s retention of this stock would not the factors set forth in section 3(c) of the Act (12 eliminate existing or potential competition or in­ U.S.C. § 1842(c)). crease the concentration of banking resources in Applicant, a one-bank holding company,1 owns any relevant area. Thus, competitive consid­ 48.3 percent of the outstanding voting shares of erations are regarded as consistent with approval Bank. On September 8, 1977, Applicant acquired of the application. an additional 0.3 percent of the outstanding voting The financial and managerial resources of Ap­ shares of Bank without the prior approval of the plicant and Bank are regarded as consistent with Board.2 Applicant now seeks the board’s approval approval and their future propsects appear favor­ to retain these shares and to acquire an additional able. Accordingly, banking factors are consistent 1.75 percent share interest in Bank. with approval. There is no indication that the Bank (approximately $20.2 million in deposits) convenience and needs of the community to be is the 221st largest commercial bank in Iowa, served are not being met, and such considerations holding approximately 0.1 percent of total com­ are regarded as consistent with approval of the mercial bank deposits in the state.3 Bank is the application. Therefore, it is the board’s judgment largest of seven banking organizations in the rele­ that retention of the subject shares would be in vant banking market,4 holding approximately 26.7 the public interest and that the application should percent of total commercial bank deposits in the be approved. market. Since Applicant has no other banking On the basis of the record, the application is subsidiaries and since the proposal involves only approved for the reasons summarized above. the retention of shares and the acquisition of addi­ By order of the Board of Governors, effective tional shares of Bank, which at all times pertinent March 23, 1979. hereto was controlled by Applicant, approval of the application will not result in any adverse ef­ Voting for this action: Chairman Miller and Gover­ fects on existing or potential competition, nor nors Wallich, Coldwell, Partee, and Teeters. increase the concentration of banking resources in (Signed) Griffith L. Garwood, any relevant area. Thus, competitive consid­ [seal] Deputy Secretary of the Board. erations are regarded as consistent with approval of the application. Delaware Service Co., Inc., 1. Applicant is engaged in nonbanking activities that are subject to 10-year grandfather privileges. Applicant intends to Manchester, Iowa apply to retain its credit life, accident and health insurance, and fiduciary activities. Its remaining nonbanking activities will Order Approving be terminated prior to December 31, 1980. Retention of Certain Shares and 2. Upon examination of all the facts of record, the board is of the view that the facts surrounding the violation of the Acquisition of Additional Shares of Bank Act do not reflect so adversely on the managerial factors as to warrant denial of this application. Delaware Service Co., Inc., Manchester, Iowa, 3. All banking data are as of June 30, 1978. 4. The relevant banking market is approximated by Dela­ 3. All banking data are as of June 30, 1978. ware County, Delaware. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 347 The financial and managerial resources and fu­ Applicant, a nonoperating corporation with no ture prospects of Applicant and Bank are satis­ subsidiaries, was formed for the purpose of be­ factory. Thus, banking factors are regarded as coming a bank holding company through the ac­ consistent with approval of the application. Al­ quisition of Bank. Bank, with total deposits of though there will be no immediate increase in the $103 million, is the 53rd largest bank in Florida, services offered by Bank, convenience and needs holding 0.4 percent of total deposits in commercial considerations are regarded as consistent with ap­ banks in the state.2 Upon acquisition of Bank, proval. Therefore, it is the board’s judgment that Applicant would control the fourth largest bank the retention of the shares acquired in violation in the relevant banking market and 5.2 percent of the Act and the acquisition of the additional of total deposits therein.3 The proposal represents shares of Bank would be in the public interest and a restructuring of the ownership of Bank, and since that the application should be approved. Applicant has no other banking subsidiaries and On the basis of the record, the application is Applicant’s principals, officers, and directors are approved for the reasons summarized above. Ac­ not associated with any other banking organi­ quisition of the additional shares of Bank shall not zations, consummation of the proposal would not be made before the thirtieth calendar day following have any adverse effects on existing or potential the effective date of this Order, or later than three competition, nor would it increase the concentra­ months after the effective date of this Order unless tion of banking resources in any relevant area. such period is extended for good cause by the Accordingly, the board concludes that competitive board or by the Federal Reserve Bank of Chicago considerations are consistent with approval of the pursuant to delegated authority. Application. By order of the Board of Governors, effective The financial and managerial resources and fu­ March 5, 1979. ture prospects of Applicant and Bank are regarded as generally satisfactory. Considerations relating Voting for this action: Chairman Miller and Gover­ to banking factors are consistent with approval of nors Wallich, Coldwell, and Partee. Absent and not the application. Although Applicant does not pro­ voting: Governor Teeters. pose any major changes in Bank’s services, con­ (Signed) Theodore E. Allison, venience and needs considerations are also con­ [seal] Secretary of the Board. sistent with approval of the application. Accord­ ingly, it is the board’s judgment that the proposed acquisition is consistent with the public interest Jacksonville National Corporation, and that the application should be approved. Jacksonville, Florida On the basis of the record, the application is approved for the reasons summarized above. The Order Approving transaction shall not be made before the thirtieth Formation of Bank Holding Company calendar day following the effective date of this Order, or later than three months after the effective Jacksonville National Corporation, Jackson­ date of this Order, unless such period is extended ville, Florida, has applied for the board’s approval for good cause by the board or by the Federal under section 3(a)(1) of the Bank Holding Com­ Reserve Bank of Atlanta pursuant to delegated pany Act (12 U.S.C. § 1842(a)(1)) of formation authority. of a bank holding company by acquiring 98.6 By order of the Board of Governors, effective percent of the voting shares of the Jacksonville March 2, 1979. National Bank, Jacksonville, Florida (“Bank”).1 Notice of the application, affording opportunity for interested persons to submit comments, has been given in accordance with section 3(b) of the Act. The time for filing comments has expired, and the board has considered the application and all comments received in light of the factors set acquire indirect control of Bank’s subsidiary, Charter Mortgage Company, since it appears that Applicant may acquire and hold forth in section 3(c) of the Act (12 U.S.C. such shares indirectly through Bank on the authority of section § 1842(c)). 4(c)(5) of the Act and section 225.4(e) of Regulation Y. 2. All banking data are as of December 31, 1977. 3. The relevant banking market is approximated by Duval 1. Applicant has not applied for the board’s approval to County plus the City of Orange Park in Clay County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 Federal Reserve Bulletin □ April 1979 Voting for this action: Chairman Miller and Gover­ trols 28.1 percent of total market deposits. None nors Wallich, Coldwell, and Partee. Absent and not of Applicant’s subsidiary banks compete in the voting: Governor Teeters. relevant banking market and Applicant’s nearest (Signed) Theodore E. Allison, banking office is located in an adjacent banking market approximately 12 miles from any office [seal] Secretary of the Board. of Bank. From the record, it appears that no significant competition presently exists between Applicant’s banking subsidiaries and Bank, and National City Corporation, that it is unlikely that competition would develop Cleveland, Ohio in the future. The board notes that consumation Order Approving Acquisition of Bank of the proposal will eliminate some potential com­ petition between Applicant and Bank, inasmuch National City Corporation, Cleveland, Ohio, a bank holding company within the meaning of the as Applicant could enter the relevant market de Bank Holding Company Act, has applied for the novo either by branching 3 or by establishing a new bank. Such entry does not appear likely since the board’s approval under section 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to acquire all of the market is not regarded as attractive for de novo entry, in view of the relatively low ratios of voting shares (less directors’ qualifying shares) of population and income per banking office in Huron the successor by merger to The Huron County County. Furthermore, while Bank could branch Banking Company, National Association, Nor­ into the seven counties contiguous to Huron walk, Ohio (“Bank”). The bank into which Bank County, including three counties where subsidiary is to be merged has no significance except as a banks of Applicant currently operate, it does not means to facilitate the acquisition of the voting appear that Bank currently possesses sufficient shares of Bank. Accordingly, the proposed acqui­ additional resources for expansion outside of sition of shares of the successor organization is Huron County. In view of the facts of record, the treated herein as the proposed acquisition of the shares of Bank. board does not regard the adverse effects on po­ tential competition that would result from the Notice of the application, affording opportunity proposed acquisition of Bank by Applicant as for interested persons to submit comments and significant, particularly in light of the fact that a views, has been given in accordance with section number of potential entrants into the relevant 3(b) of the Act. The time for filing comments and banking market remain after consummation of this views has expired, and the board has considered proposal. Moreover, consummation of the pro­ the application and all comments received, in­ posed acquisition of Bank by Applicant would not cluding those of the Comptroller of the Currency, have any adverse effects on existing competition in light of the factors set forth in section 3(c) of nor would it increase the concentration of banking the Act (12 U.S.C. § 1842(c)). resources in any relevant market. Applicant, the third largest banking organization The financial and managerial resources and fu­ in Ohio, controls 7 banks with total deposits of ture prospects of Applicant, its subsidiaries and approximately $2.2 billion,1 representing approxi­ Bank are considered satisfactory. Thus, consid­ mately 5.9 percent of the total deposits in com­ erations relating to banking factors are consistent mercial banks in the state. Upon consummation with approval of the application. Upon acquisition of the proposed transaction, Applicant’s share of of Bank, Applicant will assist Bank in providing statewide deposits would increase by 0.2 percent, new and improved services to its customers. In and consummation of the proposal would not have particular, Applicant will cause Bank to increase an appreciable effect on the concentration of its marketing of credit services and to expand its banking resources in Ohio. consumer lending activities. In addition, Applicant Bank is the largest of seven banking organi­ will encourage Bank to increase its involvement zations in the relevant banking market,2 and con­ in community development programs and its busi- 1. All banking data are as of June 30, 1978, unless other­ wise indicated. 3. Under a recently enacted Ohio law, effective January 1, 2. The relevant banking market is approximated by Huron 1979, an Ohio bank may branch de novo into counties contig­ County, Ohio, including the City of Bellevue and the Village uous with the county in which the bank’s home office is located. of Plymouth. All data for the relevant banking market are as Three subsidiary banks of Applicant have home offices located of June 30, 1977. in counties contiguous with Huron County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 349 ness contacts with real estate brokers and home application and all comments received have been improvement contractors. Finally, affiliation with considered in light of the factors set forth in section Applicant also will provide Bank’s customers with 3(c) of the Act (12 U.S.C. § 1842(c)).1 more convenient access to specialized services Applicant, a nonoperating corporation with no offered by subsidiaries of Applicant, including subsidiaries, was recently organized for the pur­ international banking, leasing, automobile floor pose of becoming a bank holding company through plan financing, industrial revenue bond financing acquisition of Bank. Bank ($12.1 million in de­ and trust services. Therefore, considerations relat­ posits) is the 509th largest banking organization ing to the convenience and needs of the community in Florida controlling 0.04 percent of the total to be served lend some weight toward approval deposits held by commercial banks in the state.2 of the application, and in the board’s view, are In the Miami banking market (the relevant mar­ sufficient to outweigh any anticompetitive effects ket), Bank is the 42nd largest banking organization that would result from consummation of the pro­ with approximately 0.2 percent of market depos­ posal. Based on the foregoing and other consid­ its.3 erations reflected in the record, it is the board’s Principals of Applicant are also associated with judgment that the proposed acquisition is in the Republic National Bank of New York, a subsidiary public interest and that the application should be of Republic New York Corporation, a registered approved. bank holding company. Inasmuch as Republic On the basis of the record, the application is National Bank of New York is not located in the approved for the reasons summarized above. The same market as Bank, and since this proposal transaction shall not be consummated before the essentially represents a restructuring of the existing thirtieth calendar day following the effective date ownership of Bank, consummation of the proposal of this Order or later than three months after the would not have an adverse effect on existing or effective date of this Order, unless such period potential competition. Accordingly, it is concluded is extended for good cause by the board or by that competitive considerations are consistent with the Federal Reserve Bank of Cleveland pursuant approval of the application. to delegated authority. The financial and managerial resources and fu­ By order of the Board of Governors, effective ture prospects of Applicant are satisfactory. The March 23, 1979. sole shareholder of Bank proposes to exchange all of the outstanding shares of Bank for shares of Voting for this action: Chairman Miller and Gover­ Applicant, effecting a reorganization with no nors Wallich, Coldwell, Partee, and Teeters. change in control and no associated debt. The (Signed) Griffith L. Garwood, managerial resources of Applicant and Bank are [seal] Deputy Secretary of the Board. considered satisfactory and the future prospects of each appear favorable. Accordingly, consid­ erations related to banking factors are consistent with approval of the application. Although con­ SafraCorp, summation of the proposal would effect no imme­ Miami, Florida diate changes in the banking services offered by Bank, considerations relating to the convenience Order Approving and needs of the community to be served also are Formation of Bank Holding Company consistent with approval. On the basis of the record, the application is SafraCorp, Miami, Florida (“Applicant”), has approved for the reasons summarized above. The applied for the board’s approval under section 3(a)(1) of the Bank Holding Company Act (12 U.S.C. § 1842(a)(1)) to become a bank holding 1. Safra International Trading, Inc., Dade County, Florida (“Protestant”), has objected to this application alleging that company through the acquisition of 100 percent unfair competition would result from the infringement of the of the voting shares of SafraBank, Dade County, name “Safra” and the goodwill entailed therein. The board Florida (“Bank”). Notice of the application, af­ has determined that resolution of such allegation rests with the courts and is not properly within the jurisdiction of the fording opportunity for interested persons to sub­ board under §3(c) of the Act. mit comments and views, has been given in ac­ 2. Banking data are as of December 31, 1977. 3. The Miami banking market is approximated by Dade cordance with section 3(b) of the Act. The time County and that portion of Broward County lying south of for filing comments and views has expired and the the Dania Canal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 Federal Reserve Bulletin □ April 1979 transaction shall not be consummated (a) before approve, under section 25(a) of the Federal Re­ the thirtieth day following the effective date of this serve Act (the “Edge Act”) (12 U.S.C. § 619), Order or (b) later than three months after the retention by Bank of voting shares of Union Inter­ effective date of this Order, unless such period national Bank (“Edge”), Los Angeles, California, is extended for good cause by the Board of Gov­ a subsidiary organized under that section, after ernors or by the Federal Reserve Bank of Atlanta Applicants acquire Bank. Finally, application has pursuant to delegated authority. been made by CBOL for the board’s approval, By order of the Board of Governors, effective pursuant to the Bank Merger Act (12 U.S.C. March 9, 1979. § 1828(c)), to consolidate with Bank, a state member bank of the Federal Reserve System, Voting for this action: Chairman Miller and Gover­ under the charter of Bank. Incident to the proposed nors Wallich, Coldwell, and Partee. Absent and not merger the existing offices of CBOL would be­ voting: Governor Teeters. come branch offices of the resulting bank. (Signed) Griffith L. Garwood, Notice of the applications, affording opportunity [seal] Deputy Secretary of the Board. for interested persons to submit comments and views, has been given in accordance with section 3(b) of the Act, and the time for filing comments and views has expired. The board has considered the applications and all comments received, in­ Standard Chartered Bank Limited, cluding those submitted after the close of the London, England comment period by the U.S. Labor Party, in light Standard Chartered Overseas Holdings Limited, of the factors set forth in section 3(c) of the Act London, England (12 U.S.C. § 1842(c)) and the purposes of the Standard Chartered Bancorp, Edge Act. Notice of the proposed merger was duly San Francisco, California published, and reports on the competitive factors Chartered Bank of London, were requested and received from the United San Francisco, California States Attorney General, the Comptroller of the Currency and the Federal Deposit Insurance Cor­ Order Approving Acquisition of Bank, poration. The board has considered the merger Formation of Bank Holding Companies, application and all comments received in light of Merger of Banks, and Acquisition the factors set forth in the Bank Merger Act. of Edge Act Subsidiary SCB is the fifth largest British banking organi­ zation and the 70th largest in the world, with total Standard Chartered Bank Limited (“SCB”), assets equivalent to approximately $18 billion as London, England, a bank holding company within of September 30, 1978. Approximately 71 percent the meaning of the Bank Holding Company Act of its assets are held outside of the United King­ by virtue of its control of The Chartered Bank of dom, and it conducts operations in 52 countries. London (“CBOL”), San Francisco, California, SCB and its subsidiaries are active in all aspects has applied under section 3(a)(3) of the Bank of international banking including the financing of Holding Company Act (the “Act”) (12 U.S.C. trade and foreign exchange dealing worldwide. § 1842(a)(3)) to acquire indirectly all the voting SBC also engages in consumer finance, merchant shares (less directors’ qualifying shares) of Union banking, equipment leasing, bullion and security Bank (“Bank”), Los Angeles, California. In ad­ dealing, trust, and insurance activities through dition, SCB’s subsidiaries, Standard Chartered subsidiaries and branches in the United Kingdom, Overseas Holdings Limited (“Holdings”), Lon­ Africa, South East Asia and Australia. Holdings don, England, and Standard Chartered Bancorp and Bancorp are nonoperating corporations organ­ (“Bancorp”), San Francisco, California, have ap­ ized solely to facilitate the proposed transaction, plied under section 3(a)(1) of the Act (12 U.S.C. and their acquisition of CBOL represents a re­ § 1842(a)(1)) to become bank holding companies structuring of the existing ownership of CBOL by acquiring directly and indirectly, as part of the within the SCB organization. same transaction, all the voting shares (less direc­ CBOL holds total domestic deposits of $399 tors’ qualifying shares) of Bank and CBOL. million, representing 0.38 percent of commercial Applicants have also requested that the board bank deposits in California, and is the 21st largest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 351 banking organization in the state.1 Bank is a sub­ banking organization with control of approxi­ sidiary of Union Bancorp, Los Angeles, Califor­ mately 1.4 percent of market deposits. CBOL is nia, which would be merged with Bancorp and the seventeenth largest banking organization in dissolved prior to Bancorp’s acquisition of CBOL. that market with approximately 0.6 percent of Bank holds deposits of approximately $4 billion, market deposits. There are 58 competitors in the representing 3.8 percent of the total deposits in San Francisco banking market and the top four commercial banks in the state, and is the sixth control approximately 79 percent of market de­ largest banking organization in California. Upon posits. The combined institution would control consummation of these transactions, Applicants approximately 2 percent of market deposits and would become the sixth largest banking organi­ would remain the sixth largest banking organi­ zation in the state with total deposits of $4.3 zation. In the San Diego metropolitan banking billion. market, Bank is the seventh largest banking orga­ The financial and managerial resources of Ap­ nization with approximately 4.1 percent of market plicants, Bank, and CBOL are regarded as gener­ deposits. CBOL is the eighteenth largest organi­ ally satisfactory and the future prospects of each zation with approximately 0.5 percent of market appear favorable. The proposed transaction would deposits. There are 29 competitors in the San provide Bank strong financial support, including Diego market and the four largest competitors $25 million in new capital. Moreover, the board control approximately 73 percent of market de­ expects Applicants will serve as a continuing posits. The combined organization would control source of strength to Bank and Applicants recog­ approximately 4.6 percent of market deposits and nize their responsibility to do so. Although Appli­ would be the sixth largest banking organization cants will incur some debt in connection with this in the market. In view of the fact that Bank is proposal, it appears that Applicants will be able a relatively small competitor compared to the top to service the debt without adversely affecting the firms in these markets, and considering the large financial position of the resulting bank. In the number of competing instutitions in these markets, board’s judgment, Applicants will serve as a the increased market shares of the proposed com­ source of strength to Bank and CBOL and banking bined institution are not viewed as significant and factors are consistent with approval. the effect of the proposed transaction on existing While the acquisition of CBOL by Holding^ and competition is viewed as only slightly adverse.4 Bancorp would have no effect on competition in With regard to probable future competition, any relevant market, the proposed acquisition of CBOL is represented in three markets, Santa Bar­ Bank would eliminate some existing competition bara, Ventura-Oxnard, and Oceanside-Vista, in the Los Angeles, San Diego and San Francisco where Bank could establish branches. However, banking markets.2 In the Los Angeles metropolitan Bank is not viewed as a likely entrant in these area, Bank controls approximately 7.7 percent of three markets. Bank is represented in an additional the market and is the fourth largest banking orga­ market, Sacramento, where CBOL could establish nization.3 CBOL controls approximately 0.05 per­ branches. However, the effect of the proposed cent of the market and is the 69th largest institu­ transaction on potential competition in these four tion. There are 105 competitors in the Los Angeles markets is not viewed as significant because of market and the four largest competitors control the existence of a large number of potential en­ approximately 71 percent of market deposits. The trants in each of the markets and the high level combined institution would control approximately of existing competition in these markets. Accord­ 7.7 percent of market deposits and would remain ingly, based on the facts of record, the board finds the fourth largest organization. In the San Fran­ cisco market, Bank ranks as the sixth largest 4. The United States Attorney General expressed the view that consummation of the proposed transaction would not have a substantial competitive impact. The Comptroller of the Cur­ rency expressed the view that although the merger would 1. Unless otherwise noted all banking data are as of June eliminate some existing competition the effect on competition 30, 1978. would not be substantially adverse. The Federal Deposit Insur­ 2. The seven markets affected by this proposal are the ance Corporation expressed the view that consummation of metropolitan areas, as defined by Rand McNally & Company, the proposed transaction would not have a significant effect in the 1978 Commercial Atlas & Marketing Guide, of Los on competition. In arriving at this conclusion, the board also Angeles, San Francisco, San Diego, Santa Barbara, Ventura- considered the proportion of banking resources controlled by Oxnard, Oceanside-Vista and Sacramento. foreign-owned institutions in the market relevant to this pro­ 3. Market data are as of June 30, 1977. posal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 Federal Reserve Bulletin □ April 1979 that the effect of the proposed transactions on terrorism, and the covert foreign intelligence competition would be slightly adverse. operations of the People’s Republic of China. The Convenience and needs considerations relating Party has asked the board to conduct hearings on to this proposal are favorable. The additional cap­ these charges. ital to be injected into Bank is expected to Substantially the same allegations and argu­ strengthen the organization and allow it to provide ments were made by the Party in its protest of new services to the public. As a subsidiary of the applications by The Hong Kong and Shanghai SCB, CBOL has demonstrated both its ability and Banking Corporation, Hong Kong, and affiliated inclination to compete effectively in the provision companies to acquire Marine Midland Banks, Inc., of retail banking services, and the affiliation of Buffalo, New York. For the reasons stated in the Bank with SCB is expected to result in an impor­ board’s Order on those case, the board has denied tant broadening of Bank’s retail base, including the U.S. Labor Party’s request for a hearing and major expansion of its consumer mortgage lending is unable to accord the charges made by the U.S. and adoption of an active branching policy, which Labor Party sufficient weight or dignity to consti­ will benefit the communities Bank serves. Con­ tute a determinative adverse consideration relative summation of the proposal can also be expected to these applications. to produce managerial and operational efficiencies With respect to Bank’s Edge Act Corporation, in both the domestic and international area that the public interest in the uninterrupted continuation will contribute to producing a more aggressive of its service to customers favors approval of its firm in retail and wholesale banking in the future. retention by Bank after Bank’s affiliation with Further, affiliation with a banking organization Applicants. The financial and managerial resources widely represented overseas will allow Bank to of SCB are consistent with approval of the affilia­ provide better service to customers with interna­ tion between Edge and SCB, an organization re­ tional banking needs. The board finds that the presented broadly in foreign markets, and a considerations relating to the convenience and strengthening of Bank resulting from this proposal needs of the communities to be served lend weight is expected to improve the international services toward approval and outweigh the slightly adverse Edge would be able to provide to its customers, competitive effects of this proposal. It is the consistent with the purposes of the Edge Act to board’s judgment that, with respect to the applica­ afford to all times a means of financing interna­ tions filed under section 3 of the Bank Holding tional trade, to stimulate competititon for interna­ Company Act and under the Bank Merger Act, tional banking and financing services, and to faci­ that consummation of the proposal would be in litate and stimulate United States exports. Ac­ the public interest and those applications should cordingly, the board has approved the application be approved. filed under the Edge Act for the retention of Edge.5 In reaching this decision, the board has given On the basis of the record, the applications due consideration to the comments received after under the Bank Holding Company and Edge Act the close of the comment period from the U.S. are approved for the reasons summarized above, Labor Party, New York, New York. It is the and the application to merge and, incident to that Party’s position, elaborated in a 30-page memo­ merger, to establish branches is also approved.6 randum, a 400-page book, and various other doc­ The transactions shall not be made before the uments filed with the Federal Reserve System, that thirtieth calendar day following the effective date SCB is among various companies that have been of this Order or later than three months after the designated as part of an agreement between Mao effective date of this Order unless such period is Tse-Tung and the Royal Institute of International extended for good cause by the board or by the Affairs to act as agent for the British monarchy in the management and financing of the world opium trade. According to the Party, Britain’s 5. In a related action, the Director of the board’s Division leading commercial and merchant banks and many of Banking Supervision and Regulation, pursuant to delegated of the world’s important commercial firms are authority, has approved amendments to the articles of incorpo­ ration of Edge to permit foreign persons approved by the board associated in a world drug cartel, under the direc­ to acquire direct or indirect controlling interests in it. tion of the British monarchy, that touches or 6. As a part of these applications, SCB has agreed to provide on a continuing basis certain financial information and to provide comprehends, among other things, the American such other information as the board from time to time deems nec­ crime syndicate, Zionist financing of international essary for the proper discharge of its supervisory duties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 353 Federal Reserve Bank of San Francisco pursuant ing organization in the Atlanta market, with 16 to delegated authority. percent of market deposits. While three of Appli­ By order of the Board of Governors, effective cant’s subsidiary banks operate 46 branches in the March 16, 1979. market, none of these branches is located in the county of Bank, and state law precludes inter­ Voting for this action: Chairman Miller and Gover­ county branching and de novo entry by bank nors Wallich, Coldwell, Partee, and Teeters. holding companies. While consummation of this (Signed) Griffith L. Garwood, proposal would eliminate some existing competi­ [seal] Deputy Secretary of the Board. tion between Bank and Applicant, in view of the nature of the market and Bank’s small size, the board does not regard the effects of the proposal on competition as being significant. Although Ap­ Trust Company of Georgia, plicant’s mortgage subsidiary originates mortgage Atlanta, Georgia, loans in the Atlanta market, Bank’s operations in Order Approving Acquisition of Bank that activity are very small and the amount of nonbank competition that would be eliminated by Trust Company of Georgia, Atlanta, Georgia, consummation of this proposal is minimal. a bank holding company within the meaning of The financial and managerial resources of Ap­ the Bank Holding Company Act, has applied for plicant and its subsidiary banks are regarded as the board’s approval under section 3(a)(3) of the generally satisfactory and the future prospects of Act (12 U.S.C. § 1842(a)(3)) to acquire 100 per­ each appear favorable. Applicant has committed cent of the voting shares (less directors’ qualifying to provide needed support to Bank, including shares) of the successor by merger to Gwinnett capital, which will ensure a strengthening of Commercial Bank, Lawrenceville, Georgia Bank’s financial resources. The managerial re­ (“Bank”). The bank into which Bank is to be sources and future prospects of Bank will similarly merged has no significance except as a means to be strengthened to an important degree as a result facilitate the acquisition of the voting shares of of the transaction. Banking factors, therefore, lend Bank. Accordingly, the proposed acquisition of weight toward approval. shares of the successor is treated in this Order as Applicant plans to introduce a number of new a proposed acquisition of the shares of Bank. services to customers of Bank, including trust, Notice of the application, affording opportunity international banking, factoring, leasing, invest­ for interested persons to submit views and recom­ ment advisory and data processing. A plan for mendations, has been given in accordance with preauthorized transfer from savings to checking section 3(b) of the Act. The time for filing views accounts will be initiated. Applicant also proposes and recommendations has expired, and the appli­ to open additional branches of Bank in Gwinnett cation and all comments have been considered in County and would make any necessary capital light of the factors set forth in section 3(c) of the injections to support the proposed branches. In Act (12 U.S.C. § 1842(c)). addition, affiliation with Applicant will give Bank Applicant, the second largest banking organi­ access to management expertise and experienced zation in Georgia, controls eleven banks with lending officers who will assist bank in investment aggregate deposits of approximately $1.6 billion, portfolio management, legal matters, loan review, representing 11.3 percent of the total deposits in control and planning. Considerations relating to commercial banks in Georgia.1 Acquisition of the convenience and needs of the community to Bank, with deposits of $17.8 million, would in­ be served lend weight toward approval, sufficient crease Applicant’s share of commercial bank de­ to outweigh any adverse competitive effects that posits by less than 0.1 percent, and would not alter might be associated with the proposal. Accord­ Applicant’s ranking in the state. ingly, it is the board’s judgment that the proposed Bank is the twenty-second largest banking or­ acquisition would be in the public interest and that ganization in the Atlanta banking market,2 holding the application should be approved. 0.3 percent of the total commercial bank deposits in that market. Applicant is the third largest bank­ 2. The Atlanta banking market includes the two central counties of the Atlanta SMSA, Fulton and DeKalb, and six other countries surrounding these: Cobb, Douglas, Gwinnett, 1. All banking data are as of September 30, 1978. Henry, Clayton, and Rockdale. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 Federal Reserve Bulletin □ April 1979 On the basis of the record, the application is tion, and M.M. Leasing Services, Inc., Buffalo, approved for the reasons summarized above. The New York, and American Dimensions, Inc., and transaction shall not be made before the thirtieth The Meairs Company, Irvine, California. These calendar day following the effective date of this companies are existing nonbank subsidiaries of Order, or later than three months after the effective Marine engaged in mortgage banking, real estate date of this Order unless such period is extended lending, and leasing activities that have been de­ for good cause by the board or by the Federal termined by the board to be closely related to Reserve Bank of Atlanta pursuant to delegated banking (12 CFR § 225.4(a)(1), (3), and (5)). authority. Finally, Applicants have requested that the board By order of the Board of Governors, effective .approve, under section 25(a) of the Federal Re­ March 12, 1979. serve Act (“the Edge Act”) (12 U.S.C. § 619), the retention by Marine of voting shares of Marine Voting for this action: Chairman Miller and Gover­ Midland International Corporation, New York, nors Wallich, Coldwell, and Partee. Absent and not New York, and Marine Midland Interamerican voting: Governor Teeters. Bank, Miami, Florida, Marine’s two indirect sub­ (Signed) Griffith L. Garwood, sidiaries organized under that section, after Appli­ [seal] Deputy Secretary of the Board. cants acquire a controlling interest in Marine. Notice of receipt of the applications filed under the Act has been given in accordance with sections 3 and 4 of the Act (43 Federal Register 44,566 Orders Under Sections 3 And 4 (1978) and the time for filing views and comments Of Bank Holding Company Act has expired. The board has considered the appli­ cations and all comments received in light of the The Hongkong and Shanghai factors set forth in section 3(c) of the Act (12 Banking Corporation, Hong Kong U.S.C. § 1842(c)), the considerations specified in Kellett, N.V., section 4(c) (8) of the Act, and the purposes of Curacao, Netherlands Antilles the Edge Act. HSBC Holdings B.V., HSBC is the largest bank incorporated in the Amsterdam, The Netherlands British Crown Colony of Hong Kong and the 67th Order Approving Formation of Bank Holding largest banking organization in the Free World, Companies and Acquisition of Nonbank and with consolidated deposits equivalent to approxi­ Edge Act Subsidiaries mately $13 billion.1 It operates a retail and whole­ sale commercial, trust, and merchant banking The Hongkong and Shanghai Banking Corpora­ business through branches, representative offices, tion (“HSBC”), Hong Kong, and its subsidiaries, subsidiaries, and affiliates in 40 countries in Kellett N.V., Curaco, Netherlands Antilles, and Europe, the Far East, the Middle East, Australia, HSBC Holdings B.V., Amsterdam, The Nether­ and the Americas. In addition to these activities, lands, have applied under section 3(a)(1) of the HSBC also performs a number of central banking Bank Holding Company Act (“the Act”) (12 functions for the British Crown Colony of Hong U.S.C. § 1842(a)(1)) for approval of the forma­ Kong, either de facto or as a matter of law. In tion of bank holding companies by acquiring, the United States, HSBC operates branches in New directly and indirectly, 51 percent of the voting York, Chicago, and Seattle, two agencies in Cali­ shares of Marine Midland Banks, Inc. fornia, and a representative office in Houston, and (“Marine”), Buffalo, New York. HSBC has been it has noncontrolling interests, permissible under a bank holding company by virtue of its control section 4(c)(9) of the Act and section 225.4(g) of of The Hongkong Bank of California, San Fran­ Regulation Y, in three foreign companies that cisco, California, but HSBC recently sold that engage indirectly in nonbanking business in the bank. United States. As stated, HSBC has disposed of Applicants have also applied under section its interest in The Hongkong Bank of California. 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and The remaining Applicants are nonoperating cor­ section 225.4(b)(2) of the board’s Regulation Y (12 CFR § 225.4(b)(2)) for permission to acquire in­ directly, as an incident to their acquisition of Marine, shares of Marine Midland Realty Credit 1. Banking data for Applicants are as of December 31, Corporation, Marine Midland Leasing Corpora­ 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 355 porations organized solely to facilitate the pro­ recognize their responsibility to do so. It is recog­ posed transaction. nized that Marine needs financial support, includ­ Marine does not engage directly in any activity ing capital, and the added support that would be except holding shares of its subsidiaries. Its bank­ provided under this proposal would permit Bank ing subsidiary, Marine Midland Bank (“Bank”), to grow in a more orderly way and to become Buffalo, New York, holds domestic deposits of a more aggressive competitor, thereby benefiting approximately $7 billion, or 4.5 percent of com­ the communities it serves. Because of the nature mercial bank deposits in New York, and is the and extent of Bank’s operations in New York, the seventh largest banking organization in that state effect of this increased financial and competitive and the twelfth largest in the United States.2 Bank strength would be felt state-wide, but it would also serves 203 communities in New York through have a significant effect in national and interna­ approximately 300 banking offices. tional markets. Access to HSBC’s branches in Both HSBC and Bank compete in the metro­ those parts of the world where Bank is not repre­ politan New York banking market.3 HSBC sented would allow Bank to provide better service operates two branches in Manhattan, holding de­ to its customers with international banking needs. posits of $204 million, a total equivalent of less Finally, HSBC’s record of meeting the conven­ than 0.2 percent of the deposits held by domestic ience and needs of the communities it serves is commercial banks in the New York market. Bank consistent with approval of its application to ac­ operates 64 offices in the market, and it ranks as quire Marine. The board concludes that banking the ninth largest banking organization there, with factors and considerations relating to the conven­ 2.5 percent of the market’s commercial bank de­ ience and needs of the communities to be served posits. The board concludes that the impact of the favor approval of the applications to become bank proposed transaction on market concentration holding companies, and the latter considerations would not be significant. Consummation of the are sufficient to outweigh any slightly adverse proposal would eliminate some direct competition, competitive effects associated with the proposal. but there are numerous other competitors in the It is the board’s judgment that, with respect to market and, particularly with respect to HSBC’s the applications filed under section 3 of the Act, Chinatown branch, existing competition between consummation of the proposal would be in the the institutions is limited, and the board concludes public interest and those applications should be that the effect of the transaction on competition approved. would be at most slightly adverse.4 The board does In reaching these conclusions, the board has not regard HSBC as a potential entrant in other given due consideration to the public comments markets served by Bank, and HSBC does not received on these applications, and has given par­ compete, through any continuing part of its orga­ ticular attention to the submission made by the nization, with Marine’s nonbank subsidiaries. U.S. Labor Party, New York, New York. It is The financial and managerial resources and fu­ the Party’s position, elaborated in a 118-page ture prospects of Applicants appear satisfactory. report and other documents filed with the Federal The proposed transaction would provide Marine Reserve System, that HSBC is among various $200 million in new capital and would markedly companies that have been designated, as part of strengthen the financial resources and future pros­ an agreement between Mao Tse-tung and the pects of the institution. Furthermore, the board Royal Institute of International Affairs, to act as expects Applicants to continue to serve as a source agent for the British monarchy in the management of strength to Marine in the future, and Applicants and financing of the worldwide opium trade. Ac­ cording to the Party, Britain’s leading commercial and merchant banks and many important commer­ cial firms are associated in a world drug cartel, 2. Banking data for Marine and market data are as of June under the direction of the British monarchy, that 30, 1978. 3. The metropolitan New York market consists of New York touches or comprehends, among other things, the City, Nassau, Westchester, Putnam, and Rockland Counties American crime syndicate, Zionist financing of and western Suffolk County, New York, the northern twothirds of Bergen County and eastern Hudson County, New international terrorism, and covert foreign intelli­ Jersey, and southwestern Fairfield County, Connecticut. gence operations of the People’s Republic of 4. In arriving at this conclusion the board also considered China. The U.S. Labor Party has asked the board the proportion of banking resources controlled by foreignowned institutions in the markets relevant to this proposal. to conduct hearings on these charges. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 Federal Reserve Bulletin □ April 1979 The Labor Party has not alleged that these presence of Marine’s nonbank subsidiaries as charges are relevant to the operation of Marine’s competitors in the markets they serve as a public domestic mortgage banking, real estate lending, benefit, and the strengthening of Marine that would and leasing subsidiaries, and the board is not result from consummation of this proposal may required to hold hearings on applications under enable these subsidiaries to assume a more effec­ section 3 of the Act unless the appropriate bank tive competitive role. There is no evidence in the supervisory authority, in this case the New York record that consummation of the proposal would, Superintendent of Banks, recommends denial, with respect to these applications, result in undue which she has not done. Moreover, the Labor concentration of resources, decreased or unfair Party has not demonstrated that it would suffer competition, conflicts of interest, unsound banking any injury in fact, economic or otherwise, that is practices, or other adverse effects on the public arguably within the zone of interest protected or interest. Accordingly, the board has determined regulated by the Act, as would be necessary for that the balance of public interest factors it must it to establish standing in this matter. The Labor consider under section 4(c)(8) of the Act favors Party’s primary and its only definite intention at approval of the applications filed under that sec­ any hearing is to “present” materials that it has tion, and that those applications should be ap­ already submitted in writing, and it has failed to proved. show that a hearing is necessary or would usefully Similarly, with respect to Marine’s two Edge add to those written materials. Upon consideration Act corporations, the public interest in the unin­ of this matter, the board has denied the hearing terrupted continuation of their service to customers request. favors approval of their retention by Bank after With respect to the charges made by the U.S. Marine is acquired by Applicants. The financial Labor Party, the board is unable to accord them and managerial resources of Applicants are con­ sufficient weight or dignity to constitute a deter­ sistent with approval of the affiliation of these two minative adverse consideration relative to these corporations with HSBC, an organization broadly applications. The Party’s report mixes historical represented in foreign markets, and a strengthen­ facts and unverifiable allegations, and its conten­ ing of Marine resulting from this proposal is ex­ tion that HSBC is a current, witting participant pected to improve the international services in illegal activities is premised wholly on doubtful Marine’s Edge Act corporations would be able to deductions drawn from ambiguous facts or claims provide to their customers, consistent with the without the support of any allegation of specific, purposes of the Edge Act to afford at all times examinable criminal acts by HSBC. The charges a means of financing international trade, to stimu­ have been denied by HSBC, the record contains late competition for international banking and fi­ no independent corroboration of them, and the nancing services, and to facilitate and stimulate board does not believe the record raises credible United States exports. Accordingly, the board has factual issues regarding the integrity of Applicants’ approved the application filed under the Edge Act management. for the retention of Marine Midland International With respect to the applications to acquire Corporation and Marine Midland Interamerican Marine’s nonbank subsidiaries, the board deter­ Bank.6 mined that the balance of public interest factors As noted, HSBC has sold its interest in The prescribed by section 4(c)(8) of the Act favored Hongkong Bank of California.7 Under section 3(d) approval of Marine’s acquisition of American Di­ of the Act, the board could not approve an appli­ mensions, Inc., and The Meairs Company (38 Federal Register 33,537 (1973)), and in 1971 and 1972 the Federal Reserve Bank of New York made titure of its California bank subsidiary, the only component the same determination under delegated authority of Applicants’ organization that competes with Marine’s Cali­ with respect to Marine’s remaining three nonbank fornia nonbank subsidiaries. subsidiaries that are the subject of these applica­ 6. In a related action the Director of the board’s Division of Banking Supervision and Regulation, pursuant to delegated tions. Nothing in the record suggests that Appli­ authority, has approved amendments to the articles of incorpo­ cants’ acquisition of Marine would alter that bal­ ration of these corporations to permit foreign persons approved ance.5 In addition, the board views the continued by the board to acquire direct or indirect controlling interests in them. 7. The Hongkong Bank of California was sold in February 1979, and HSBC is in the process of submitting details of 5. Applicants’ proposal is conditioned upon HSBC’s dives- that transaction to the board’s General Counsel. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 357 cation that would permit any of the Applicants, regulations issued thereunder, or to prevent eva­ while HSBC remained a bank holding company, sion thereof. to acquire directly or indirectly any voting shares By order of the Board of Governors, effective of an additional bank located outside California, March 16, 1979. so that without a divestiture of HSBC’s California subsidiary these applications could not be ap­ Voting for this action: Chairman Miller and Gover­ nors Wallich, Coldwell, Partee, and Teeters. proved. Termination of a company’s status as a bank holding company is not always automatic (Signed) Griffith L. Garwood, upon sale of its bank subsidiaries,8 and any doubt [seal] Deputy Secretary of the Board. about whether HSBC terminated its status as a bank holding company before acquiring Marine National Westminster Bank Limited, would raise a doubt of equal strength regarding London, England the validity of the board’s approval of these ap­ NatWest Holdings, Inc., plications. For that reason, it is a condition of this Wilmington, Delaware Order that HSBC’s proposed acquisition of Marine shall not be consummated before the board or its Order Approving Formation of General Counsel has determined that the divesti­ Bank Holding Companies and ture of The Hongkong Bank of California is com­ Retention of Nonbanking Shares plete and effective and that HSBC has ceased to be a bank holding company. National Westminster Bank Limited, London, Subject to the foregoing condition, the applica­ England (“NatWest”), and its subsidiary, Nattions are approved based on the record and for West Holdings, Inc., Wilmington, Delaware the reasons summarized above. The proposed (“Holdings”), have applied for the board’s ap­ transactions shall not be made before the thirtieth proval under section 3(a)(1) of the Bank Holding calendar day following the effective date of this Company Act (“Act”) (12 U.S.C. § 1842 (a)(1)) Order, or later than three months after the effective of formation of bank holding companies through date of this Order unless such period is extended acquisition of 75.1 percent of the voting shares for good cause by the board or by the Federal of National Bank of North America, Jamaica, New Reserve Bank of New York pursuant to authority York (“NBNA”), from C.I.T. Financial Cor­ hereby delegated.9 The determination as to Appli­ poration, New York, New York.1 In this connec­ cant’s acquisition of Marine’s nonbank subsidi­ tion, NatWest and Holdings have applied pursuant aries under section 4(c)(8) of the Act is subject to section 25(a) of the Federal Reserve Act to to the conditions set forth in section 225.4(c) of acquire all of the shares of North America Inter­ Regulation Y, and to the board’s authority to national Corporation, New York, New York, the require reports by and make examinations of bank Edge Act subsidiary of NBNA. NatWest has also holding companies and their subsidiaries,10 and to applied, pursuant to section 4(c)(8) of the Act, require such modification or termination of the to retain shares of its indirect subsidiary, C. F. activities of a bank holding company or any of International Inc., New York, New York (“CFI”), its subsidiaries as the board finds necessary to a company that is engaged in factoring of accounts assure compliance with the provisions and pur­ receivable in international trade. The board has poses of the Act and the board’s Orders and determined this activity to be permissible for bank holding companies at section 225.4(a)(1) and (3) of Regulation Y (12 C.F.R. § 225.4 (a)(1) and (3)). Notice of the applications, affording opportunity 8. See, 12 C.F.R. §§ 225.138(b)(6) and 225.139. for interested persons to submit views and recom­ 9. The board recognizes that a part of the proposed transac­ tions is not expected to be consummated before December 31, mendations, has been given in accordance with 1980, and the board anticipates that the Reserve Bank may section 3(b) and section 4(c)(8) of the Act. The grant successive extensions of this period as necessary, each not exceeding six months. 10. As a part of its applications, both under sections 3 and 4 of the Act, HSBC has specifically agreed to provide on a 1. The board’s action with respect to these applications does continuing basis certain financial information and to provide not address the issue of whether C.I.T. Financial Corporation, such other information as the board form time to time deems a registered bank holding company with respect to NBNA, necessary for the proper discharge of its supervisory respon­ will cease to be a bank holding company upon its sale of 75.1 sibilities. percent of the voting shares of NBNA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 Federal Reserve Bulletin □ April 1979 time for filing views and recommendations has is applicable to such ownership or control or the expired, and the board has considered the applica­ board grants an extension for such interests. tions and all comments received in light of the NBNA, with total deposits of approximately factors set forth in section 3(c) and section 4(c)(8) $2.3 billion, is the thirteenth largest commercial of the Act (12 U.S.C. § 1842(c) and 1843(c)(8)).2 bank in the state of New York. Within the metro­ NatWest, with total assets in United States dol­ politan New York market, NBNA is the eleventh lars of approximately $38.5 billion, is the second largest of 108 banking organizations and controls largest bank in the United Kingdom and the thir­ approximately 1.9 percent of the deposits in com­ teenth largest bank in the Free World.3 Holdings, mercial banks in the market.4 All but three of a wholly-owned subsidiary of NatWest, is a NBNA’s 142 branches are located within the met­ nonoperating corporation with no activities or ropolitan New York market. NatWest also subsidiaries that was formed solely for the purpose operates one branch office in the market, which of acquiring shares of NBNA. NatWest conducts does not provide a range of banking services to its banking operations in the United Kingdom individuals, but rather offers commercial banking directly through more than 3,200 branches, as well services to large national and international organi­ as through four subsidiary banks, three of which zations. While NBNA also competes for commer­ are wholly-owned. In addition, NatWest conducts cial banking business on a national basis, the banking operations outside the United Kingdom aggregate amount of NBNA and the NatWest through its wholly-owned subsidiary International branch of such commercial banking business in Westminster Bank Ltd., and its wholly-owned the country or in any other relevant area is not commercial banking subsidiaries located in Hong significant. It is the board’s view that the proposal Kong and Canada, as well as through its holding of NatWest and Holdings to become bank holding of direct and indirect interests in banking organi­ companies would not have any adverse effects on zations located in Switzerland, the Netherlands, existing competition, nor does it appear from the and the Bahamas. In the United States, NatWest record that the proposal would have any other operates a branch office in New York, New York, adverse affects on competition in any relevant area and Chicago, Illinois, and has an agency office in the United States.5 Accordingly, the board re­ in San Francisco, California; NatWest also has a gards competitive considerations as consistent with representative office in Los Angeles, California, approval of the applications to become bank hold­ and Houston, Texas. NatWest’s two principal ing companies. nonbanking subsidiaries provide installment and The board expects that a bank holding company lease financing and conduct a merchant banking will have the resources to serve as a source of business outside the United States. With respect financial strength for its subsidiary banks. On the to any direct or indirect ownership or control by basis of the record, the board has concluded that NatWest of various companies doing business in the financial and managerial resources of NatWest the United States, including Tower Isles, Inc., and its subsidiaries are regarded as satisfactory, Roy West Holdings Limited, and UK-American and their future prospects appear favorable. As a Properties Inc., the board notes that, pursuant to result of consummation of the proposed acquisi­ section 4(a)(2) of the Act, such ownership or tion, NBNA’s financial and managerial resources control cannot be retained beyond two years from and future prospects will be strengthened, particu­ the date on which NatWest becomes a bank hold­ larly in light of NatWest’s commitment to inject ing company unless an exemption under the Act at least $25 million of capital into NBNA within six months after acquiring NBNA. Furthermore, NatWest has stated its intention to ensure that 2. The board received comments on this application from Mr. Jose Ametller and Mr. L. G. Norman objecting to foreign ownership of NBNA and certain practices of NatWest that are 4. The metropolitan New York market, the relevant banking subject to regulation under British law, respectively. Inasmuch market for the purposes of this application, consists of: New as these matters do not appear to relate to the factors the board York City, western Suffolk County, and Nassau, Putnam, is required to consider under the Act, and since no hearing Rockland, and Westchester Counties in New York; the north­ has been requested with respect to the comments, the board eastern two-thirds of Bergen County and eastern Hudson does not believe that the comments warrant further consid­ County in New Jersey; and southwestern Fairfield County in eration. Connecticut. 3. All banking data are as of June 30, 1978. As of that 5. In arriving at this conclusion, the board also considered date, pound sterling was converted at the rate of $1.86 per the proportion of banking resources controlled by foreignpound. owned institutions in the markets relevant to this proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 359 NBNA remains among the more strongly capital­ to new markets. NatWest will also introduce auto­ ized of the United States banking institutions mated teller machines for use by NBNA’s retail which are comparable to NBNA in size and in customers throughout its branching system. Fur­ nature of business. Moreover, affiliation with Nat- thermore, upon affiliation NatWest will cause West will provide NBNA with access to the fi­ NBNA to aggressively promote consumer lending, nancial and managerial resources of NatWest, and and will cause NBNA to offer extended maturities in the board’s view, NatWest will serve as a on automobile loans. In addition, NatWest has continuing source of financial strength for NBNA. indicated that it will provide $5 million to NBNA Accordingly, banking factors lend weight toward for the expansion of its business opportunity loan approval of the applications of NatWest and program, which makes loans guaranteed by the Holdings to become bank holding companies. Small Business Administration. Finally, affiliation In this connection, in its February 23, 1979, with NatWest will enable NBNA to provide its “Statement of Policy on Supervision and Regula­ customers with improved service in the areas of tion of Foreign Bank Holding Companies”, the foreign exchange transactions, overseas credit board stated: analysis, and local currency financing for custom­ ers with overseas operations. Based on the fore­ [T]he Board believes that in general foreign banks seeking to establish banks or other banking going, it appears that considerations relating to the operations in the United States should meet the convenience and needs of the community to be served lend weight toward approval of the appli­ same general standards of strength, experience and cations to acquire NBNA. Accordingly, the board reputation as required for domestic organizers of concludes that the acquisition of 75.1 percent or banks and bank holding companies. The Board more of the voting shares of NBNA by NatWest also believes that foreign banks should meet on indirectly and Holdings directly would be in the a continuing basis these standards of safety and public interest and that the applications should be soundness if they are to be a source of strength approved. to their U.S. banking operations. With respect to NatWest’s application under In applying this principle to NatWest’s application section 4(c)(8) of the Act to retain shares of CFI, to become a bank holding company, the board the board notes that CFI is the United States sought to assure itself of NatWest’s ability to be subsidiary of Credit Factoring International Lim­ a source of financial and managerial strength and ited (“CFIL”), a direct wholly-owned subsidiary support to NBNA. The board has analyzed the of NatWest. CFIL has eight subsidiaries, which financial condition of NatWest and its subsidiaries, were established de novo by NatWest in Great evaluated the record and integrity of management, Britain, Western Europe, and the United States, assessed the role and standing of NatWest in the and which engage in the purchase of accounts United Kingdom, and requested the views of the receivable from exporters. CFI has one office lo­ bank regulatory authorities in the United King­ cated in New York City and derives a substantial dom. In connection with its financial analysis, the portion of its business from the states of New board has required that NatWest provide sufficient York, New Hampshire, and North Carolina. On information to permit its assessment of the finan­ June 30, 1978, CFI had factored accounts receiv­ cial strength and operating performance of Nat­ able of $5.1 million, 70 percent of which were West. Furthermore, NatWest has committed that derived from clients located outside New York it will provide sufficient information to enable the state. Inasmuch as CFI’s factoring business con­ board to monitor and assess its operations on a sists of export-import financing referred from other continuing basis. CFIL affiliates, it does not appear that retention Upon consummation of the proposed acquisi­ of shares of CFI by NatWest would result in the tion, NatWest intends to assist NBNA in providing elimination of any existing or potential competi­ new and improved banking services to its custom­ tion between CFI and NBNA. On the other hand, ers and particularly to NBNA’s consumer banking NatWest’s retention of shares of CFI will ensure customers. In this regard the board notes that the customers of CFI as well as its other CFIL NatWest has particular expertise in the area of affiliates of a continued source of export-import retail banking, which will enable it to lend support accounts receivable factoring. Furthermore, there to NBNA’s operations. In particular, NatWest is no evidence in the record indicating that the proposes to increase NBNA’s branches in its ex­ proposed retention would result in any conflicts isting markets, as well as to expand its branches of interest, undue concentration of resources, un­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 Federal Reserve Bulletin □ April 1979 sound banking practices or other effects adverse the meaning of the Bank Holding Company Act, to the public interest. Based on the foregoing and has applied for the board’s approval, under other facts and considerations reflected in the rec­ § 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and ord, the board has determined in accordance with § 225.4(b)(2) of the board’s Commercial Cor­ the provisions of section 4(c)(8) of the Act that poration (Del.), Los Angeles, California the retention by NatWest of shares of CFI can (“MHCC-Del”), a de novo company that will reasonably be expected to produce benefits to the engage in the activities of making or acquiring, public that outweigh any possible adverse effects, for its own account or the account of others, loans and that NatWest’s application to continue to en­ and other extensions of credit such as would be gage through CFI in export-import factoring made by a factoring and commercial finance com­ should be approved. pany, and arranging or servicing such loans and On the basis of the record, the applications are extensions of credit for any person. Such activities approved for the reasons summarized above.6 The have been determined by the board to be closely acquisition of NBNA shall not be made before the related to banking (12 CFR § 225.4(a)(1) and (3)). thirtieth calendar day following the effective date Subsequent to the acquisition, Applicant would of this Order, or later than three months after the transfer the California assets of its existing indirect effective date of this Order unless such period is subsidiary, Manufacturers Hanover Commercial extended for good cause by the board, or by the Corporation, New York, New York (“MHCC- Federal Reserve Bank of New York pursuant to NY”), to the proposed de novo subsidiary. .delegated authority. The approval of the applica­ Notice of the application, affording opportunity tion to retain shares of CFI is subject to the for interested persons to submit comments and conditions set forth in section 225.4(c) of Regula­ views on the public interest factors, has been duly tion Y and to the board’s authority to require such published (44 Federal Register 114). The time for modification or termination of the activities of a filing comments and views has expired, and the holding company or any of its subsidiaries as the board has considered the application and all com­ board finds necessary to assure compliance with ments received in the light of the public interest the provisions and purposes of the Act and the factors set forth in § 4(c)(8) of the Act (12 U.S.C. board’s regulations and orders issued thereunder, § 1843(c)(8)). or to prevent evasion thereof. Applicant is the fourth largest banking organi­ By order of the Board of Governors, effective zation in the United States and the third largest March 16, 1979. in New York state. Applicant controls four do­ mestic bank subsidiaries with total deposits of Voting for this action: Chairman Miller and Gover­ $30.5 billion.1 Applicant also engages, through nors Wallich, Coldwell, Partee, and Teeters. various subsidiaries, in a variety of nonbanking (Signed) Griffith L. Garwood, activities including mortgage banking, consumer [seal] Deputy Secretary of the Board. finance, insurance and leasing. MHCC-NY, in­ corporated in the state of New York in December 1971, was formed by Manufacturers Hanover Trust Company (“Bank”), as an operations sub­ Orders Under Section 4 sidiary for the purpose of acquiring, in March of Bank Holding Company Act 1972, substantially all the assets of Iselin-Jefferson Financial Company, Inc. (“IJF”), a factoring Manufacturers Hanover Corporation, company. MHCC-NY thus became an indirect New York, New York subsidiary of Applicant pursuant to section 4(c)(5) of the Act. Subsequently, in early 1978, MHCC- Order Approving Acquisition of NY acquired a portion of the factoring business Manufacturers Hanover Commerical Corporation (Del.) country, NAIC must seek the board’s approval to amend its articles of association before NatWest can acquire the shares Manufacturers Hanover Corporation, New of NAIC. Accordingly, this approval with regard to the acqui­ York, New York, a bank holding company within sition by NatWest indirectly and Holdings directly of shares of NBNA and thereby of shares of NAIC is subject to the filing by NAIC of amended articles of association and the 6. Inasmuch as the articles of association of North American board’s approval of such amended articles of association. Investment Company (“NAIC”) presently prohibit its acquisi­ tion by a company organized under the laws of a foreign 1. All banking data are as of June 30, 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 361 of United California Bank. The proposed transac­ lead to an undue concentration of resources, con­ tion would transfer direct ownership of certain of flict of interest or unsound banking practices. the assets, including the California factoring Consummation of the proposal is expected to pro­ assets, of MHCC-NY from Bank to Applicant. duce some public benefits such as increased effi­ The board believes that when a bank holding ciency by eliminating the need for approval of company indirectly acquires a nonbanking com­ California-originated transactions in New York. pany through a subsidiary bank, pursuant to The public would also benefit from the proposed § 4(c)(5), and subsequently applies to the board expansion of the West Coast factoring operations to acquire direct ownership of such nonbanking by the existence of additional source of such company and operate it pursuant to the broader services. authority of § 4(c)(8), the board must consider the Based upon the foregoing and other consid­ transaction as if the nonbanking company was erations reflected in the record, the board has being acquired initially from an independent third determined that the balance of the public interest party. Accordingly, in such circumstances the factors the board is required to consider under board must find that neither the original acquisition § 4(c)(8) is favorable. Accordingly, the applica­ of the nonbanking company nor the board’s ap­ tion is hereby approved. This determination is proval of the § 4(c)(8) application would result in subject to the conditions set forth in § 225.4(c) an undue concentration of resources, decreased or of Regulation Y and to the board’s authority to unfair competition, conflicts of interest, or un­ require such modification of termination of the sound banking practices. activities of a holding company or any of its At the time of the purchase of IJF Company subsidiaries as the board finds necessary to assure by MHCC-NY, IJF ranked as the 13th largest compliance with the provisions and purposes of factoring firm nationwide, with a factoring volume the Act and the board’s regulations and orders of approximately $400 million in 1971.2 IJF’s issued thereunder, or to prevent evasion thereof. factoring business was limited in scope, with ap­ The transaction shall be made not later than proximately 43 percent of its factoring volume three months after the effective date of this Order, accounted for by its textile manufacturing parent. unless such period is extended for good cause by At the time of the acquisition, Applicant neither the board or by the Federal Reserve Bank of New directly nor indirectly engaged in factoring and, York. accordingly, no existing competition was elimi­ By order of the Board of Governors, effective nated by the acquisition. Although Applicant or March, 2, 1979. Bank could have entered the factoring industry de novo, the high fixed cost of operations and the Voting for this action: Chairman Miller and Gover­ nors Wallich, Coldwell, and Partee. Absent and not highly specialized nature of the industry made such voting: Governor Teeters. entry unlikely. On the basis of the facts of record, the board finds that the 1972 acquisition of Iselin- (Signed) Theodore E. Allison, Jefferson did not have any significant adverse [seal] Secretary of the Board. effects upon either existing or potential competi­ tion in the factoring or commercial finance busi­ Old Stone Corporation, ness. Furthermore, the board finds that 1978 ac­ quisition of United California Bank’s factoring Providence, Rhode Island assets did not have any significant adverse compe­ tition effects. The subject proposal is essentially Order Approving a corporate reorganization and it is unlikely to have Acquisition of DAC Corporation any effect on competition in any market. Accord­ Old Stone Corporation, Providence, Rhode Is­ ingly, the board finds that the competitive consid­ land, a bank holding company within the meaning erations relating to the proposed transaction are of the Bank Holding Company Act, has applied consistent with approval. for the board’s approval, under section 4(c)(8) of There is no evidence in the record to indicate the Act (12 U.S.C. § 1843(c)(8)) and section that the proposed acquisition of MHCC-Del would 225.4(b)(2) of the board’s Regulation Y (12 C.F.R. § 225.4(b)(2)), to acquire, through its newly formed subsidiary, Old Stone Financial 2. Daily News Record, February 14, 1972. Corporation, Providence, Rhode Island (“Finan­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 Federal Reserve Bulletin □ April 1979 cial”), all the shares of DAC Corporation, Jack­ loans through eleven of its Florida offices. From sonville, Florida (“DAC”), and DAC’s wholly one office in Jacksonville, Florida, DAC also owned affiliates: DAC Computer Services, Inc., originates residential first mortgages for resale and American Standard Insurance Agency, Inc., and services such loans. DAC provides financially re­ The Motor Life Insurance Company, all of Jack­ lated data processing services for itself, its affili­ sonville, Florida. Upon consummation of this ates and the general public through DAC Com­ proposal Applicant would engage, through DAC, puter Services, at DAC’s headquarters in Jackson­ in mortgage banking activities including the origi­ ville. The sale of credit life insurance as agent nation for resale of first and second mortgages and is conducted through American Standard Insurance the servicing of such loans; providing data pro­ Agency (“Agency”) at all the Florida offices from cessing services for the operation of DAC and its which DAC originates second mortgages.3 DAC affiliates and financially related data processing for engages as reinsurer in the underwriting of credit the general public; acting as agent for the sale of life and credit accident and health insurance credit life insurance including level-term credit life through Motor Life Insurance Company (“Motor insurance on single payment loans, and credit Life”) at DAC’s Jacksonville headquarters.4 accident and health insurance;1 underwriting as a From the record it does not appear that any reinsurer of credit life and credit accident and meaningful competition would be eliminated upon health insurance; and engaging de novo through consummation of this proposal, nor does it appear DAC in consumer finance activities. Such activi­ likely that any significant competition would de­ ties have been determined by the board to be velop in the future between DAC and any of closely related to banking (12 C.F.R. Applicant’s subsidiaries. DAC operates in Georgia §§ 225.4(a)(1), (3), (8)(i) and (ii), (9)(ii)(a), and and Florida, and Applicant operates in Rhode (10)). Island and Massachusetts. Although Applicant Notice of the application, affording opportunity presently holds an insignificant amount of mort­ for interested persons to submit comments and gage loans in DAC’s Florida service area, there views on the public interest factors, has been duly are numerous competing financial institutions in published (43 Federal Register 60335 (1979)). the relevant market and the proposed acquisition The time for filing comments and views has ex­ would not result in a significant adverse effect on pired, and the board has considered the application competition with respect to this activity in any and all comments received in the light of the public relevant area. In addition, it does not appear that interest factors set forth in section 4(c)(8) of the Applicant’s acquisition of DAC’s insurance activ­ Act (12 U.S.C. § 1843(c)(8)). ities would have any significant effect on competi­ Applicant is the second largest banking organi­ tion in view of the limited nature of the insurance zation in Rhode Island and controls Old Stone activities which Applicant proposes that DAC Bank, Providence, Rhode Island ($988 million in would engage in following consummation of the deposits).2 In addition, Applicant controls two proposal. Moreover, Applicant’s proposal to en­ Morris Plan banks in Massachusetts, an industrial large DAC’s service areas and resume its former loan company, and a 10-year grandfathered real lending and insurance activities in its Georgia estate subsidiary. office could have procompetitive effects. Thus, the DAC (consolidated assets of $12.9 million as board concludes that consummation of this pro­ of May 31, 1978) is presently owned by UniCapi- posal would not have significant adverse effects tal Corporation, Atlanta, Georgia, and operates on either existing or future competition. thirteen offices in Florida and one in Atlanta, Georgia. DAC acts primarily as a mortgage banker in the origination for resale of second mortgages 3. The credit accident and health insurance presently on the on residential property and the servicing of such books of Motor Life Insurance Company (“Motor Life”) was originally sold through American Standard Insurance Agency (“Agency”) which has ceased such activities. Upon consum­ mation of this proposal, Agency would resume the sale of credit 1. DAC presently sells, as agent, credit indemnity insur­ accident and health insurance and Motor Life would underwrite ance. This activity is not permissible for bank holding compa­ the additional credit accident and health insurance risks. nies and Applicant has made a commitment that DAC would 4. Applicant commits that after its acquisition of DAC, cease to engage in this activity upon consummation of this Motor Life would not underwrite level-term insurance in con­ proposal. nection with installment loans; joint credit insurance unless 2. All banking data are as of June 30, 1978, unless other­ both insureds are cosigners and comakers; and credit insurance wise indicated. ifi connection with loans secured by first mortgages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 363 In light of all the facts of record, it appears of the activities of a holding company or any of that consummation of this proposed transaction its subsidiaries as the board finds necessary to would not result in any undue concentration of assure compliance with the provisions and pur­ resources, conflicts of interests, unsound banking poses of the Act and the board’s regulations and practices, or other adverse effects on the public orders issued thereunder, or to prevent evasion interest. The public can be expected to benefit from thereof. The transaction shall be made not later the expansion of credit-related insurance activities than three months after the effective date of this and the entry in to the finance company business Order, unless such period is extended for good of an additional competitor. In addition, the added cause by the board or by the Federal Reserve Bank managerial strength and improved efficiencies re­ of Boston, pursuant to authority hereby delegated. sulting from the affiliation of DAC with Applicant By order of the Board of Governors, effective will allow DAC to increase its receivables and March 2, 1979. expand its influence within its already established markets. Voting for this action: Chairman Miller and Gover­ nors Wallich, Coldwell, and Partee. Absent and not Applicant has stated that following consumma­ voting: Governor Teeters. tion of the acquisition, DAC will offer at reduced premiums the credit insurance policies that it will (Signed) Theodore E. Allison, underwrite.5 The board is of the view that the [seal] Secretary of the Board. expansion of activities and proposed rate reduc­ tions are in the public interest. In its consideration of this application, the board has taken into ac­ count Applicant’s commitment with respect to the United Oklahoma Bankshares, Inc., discontinuance, following consummation of the Oklahoma City, Oklahoma proposed acquisition, of certain impermissible Order Approving nonbank activities in which DAC is presently Acquisition of United Securities, Inc. engaged. Based upon the foregoing and other consid­ United Oklahoma Bankshares, Inc., Oklahoma erations reflected in the record, including a com­ City, Oklahoma, a bank holding company within mitment by Applicant, with respect to its proposed the meaning of the Bank Holding Company Act, underwriting activities, to maintain on a continu­ has applied for the board’s approval, under section ing basis the public benefits that the board has 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and found to be reasonably expected to result from this section 225.4(b)(2) of the board’s Regulation Y proposal and upon which the approval of that (12 C.F.R. § 225.4(b)(2)), to acquire United Se­ aspect of this proposal is based, the board has curities, Inc., Oklahoma City, Oklahoma determined that the balance of the public interest (“United Securities”), a company that will engage factors the board is required to consider under de novo in the activities of underwriting and deal­ section 4(c)(8) is favorable. Accordingly, the ap­ ing in certain government and municipal securities plication is hereby approved. This determination and in providing portfolio investment advice to is subject to the conditions set forth in section individuals, associations, corporations, and finan­ 225.4(c) of Regulation Y and to the board’s au­ cial institutions (“nonbank entities”) and to com­ thority to require such modification or termination mercial banks. In two previous cases the board determined that the activity of underwriting and 5. With respect to underwriting credit life and credit acci­ dealing in certain government and municipal se­ dent and health insurance, which is generally made available curities is closely related to banking and indicated by banks and other lenders and is designed to assure repayment that proposals to engage in the activity would be of a loan in the event of death or disability of the borrower, the board has stated: considered on a case-by-case basis.1 The activity To assure that engaging in the underwriting of providing portfolio investment advice has been of credit life and credit accident and health determined by the board to be closely related to insurance can reasonably be expected to be in the public interest, the Board will only approve banking (sections 225.4(a)(5)(iii), (a)(5)(v), and applications in which an applicant demonstrates that approval will benefit the consumer or result in other public benefits. Normally, such a showing would be made by a projected reduc­ 1. United Bancorp, 64 Federal Reserve Bulletin 222 tion in rates or increase in policy benefits due (1978); Stepp, Inc., 64 Federal Reserve Bulletin 223 to bank holding company performance of this (1978). See also the board’s Order of January 26, 1978 (43 service. (12 C.F.R. § 225.4(a)(10) n. 7). Federal Register 5382 (1978)), discussing this activity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 Federal Reserve Bulletin □ April 1979 (a)(12) of Regulation Y; 12 C.F.R. §§ 225.4(a) would result in the addition of an aggressive and (5)(iii), (a)(5)(v), and (a)(12)). knowledgeable competitor. Also, United Securi­ Notice of the application, affording opportunity ties’ chief executive officer has substantial experi­ for interested persons to submit comments and ence in the area of municipal securities underwrit­ views on the public interest factors, has been duly ing and dealing, and it appears to the board from published (44 Federal Register 3776 (1979)). The the past record of this officer and Applicant’s time for filing comments and views has expired, description of United Securities’ business that the and the board has considered the application and activity will be conducted conservatively and all comments received in the light of the public would be within the scope of underwriting and interest factors set forth in section 4(c)(8) of the dealing in securities as contemplated by the board. Act (12 U.S.C. § 1843(c)(8)). Further, conduct of the activity of underwriting Applicant is the seventeenth largest banking and dealing in certain securities would not ad­ organization in Oklahoma and controls one sub­ versely affect the financial soundness of Applicant sidiary bank with aggregate deposits of approxi­ or its subsidiaries. There is no evidence of record mately $84.3 million, representing 0.63 percent that allowing Applicant to engage in the activity of total deposits in commercial banks in the state.2 of underwriting and dealing in certain securities United Securities would engage in the activity of would result in any undue concentration of re­ underwriting and dealing in obligations of the sources, unfair competition, or other adverse ef­ United States, general obligations of various states fects upon the public interest. and of political subdivisions thereof and other Applicant also proposes through United Securi­ obligations that state member banks of the Federal ties to engage in the activity of providing portfolio Reserve System may be authorized to deal in under investment advice to nonbank entities, to state and federal law (12 U.S.C. §§ 24(7), 335). In its local governments with respect to issuance of their Order of January 26, 1978 (43 Federal Register securities, and to unaffiliated commercial banks. 5382 (1978)), the board announced its decisions, The board has previously considered this activity inter alia, not to adopt a proposed amendment and has added it to the list of permissible bank adding the activity to the list of activities permis­ holding company activities found in section sible for bank holding companies in the board’s 225.4(a) of the board’s Regulation Y (12 C.F.R. Regulation Y (12C.F.R. § 225), and to permit the § 225.4(a)) with respect to nonbank entities (sec­ activity, if at all, by order. In its Order of January tion 225.4(a)(5)(iii)), state and local governments 26, 1978, the board also affirmed its conclusion, (section 225.4(a)(5)(v)), and nonaffiliated banks first announced in its Order of October 19, 1976 (section 225.4(a)(12)). Applicant indicates that (41 Federal Register 47083 (1976)), that, as a such advice would involve commenting on com­ general matter, the activity of underwriting and position, fund flows, and adequacy of portfolios dealing in certain government and municipal se­ but would not involve providing trading advice. curities was closely related to banking. Applicant states that it is fully aware of the limita­ Before permitting a bank holding company to tions included in the board’s regulation regarding engage in a closely related activity, the board must tie-ins. Based upon Applicant’s description of the examine any public benefits that may reasonably services to be provided, it appears that United be expected to derive from performance of the Securities’ performance of this activity will be activity and weigh them against possible adverse within the scope of investment advisory activities effects to determine whether the activity is a permissible for bank holding companies. “proper incident to banking and managing or Inasmuch as United Securities is to be formed controlling banks.” As it did in two previous de novo and would provide the services encom­ cases, the board in this case must determine passed by the proposed activities de novo, the whether public benefits that may be reasonably subject proposal would eliminate neither existing expected to derive from Applicant’s performance nor future competition within any relevant market. of this activity through United Securities will out­ Accordingly, the board finds that Applicant’s ac­ weigh any possible adverse effects. quisition of United Securities and its engaging in United Securities intends to conduct its activities the proposed activities would not have any adverse in the state of Oklahoma. Approval of the proposal effect upon competition. It further appears that consummation of this proposal would not result 2. All banking data are as of June 30, 1978. in any undue concentration of resources, conflicts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 365 of interests, unsound banking practices, or other information is deemed relevant for purposes of adverse effects on the public interest. issuing the requested certification:1 Based upon the foregoing and other consid­ 1. Ector is a corporation organized under the erations reflected in the record, the board has laws of the state of Texas on November 12, 1959. determined that the balance of the public interest On February 11, 1966, Ector acquired ownership factors the board is required to consider under and control of 9800 shares, representing 39.2 section 4(c)(8) is favorable. Accordingly, the ap­ percent of the outstanding voting shares of Bank. plication is hereby approved. This determination Ector now owns 9800 shares, representing 39.2 is subject to the conditions set forth in section percent of the outstanding voting shares of Bank. 225.4(c) of Regulation Y and to the board’s au­ 2. Ector became a bank holding company on thority to require such modification or termination December 31, 1970, as a result of the 1970 of the activities of a holding company or any of Amendments to the BHC Act, by virtue of its its subsidiaries as the board finds necessary to ownership and control at that time of more than assure compliance with the provisions and pur­ 25 percent of the outstanding voting shares of poses of the Act and the board’s regulations and Bank, and it registered as such with the board on orders issued thereunder, or to prevent evasion June 30, 1971. thereof. 3. Ector would have been a bank holding com­ The transaction shall be made not later than pany on July 7, 1970, if the BHC Act Amend­ three months after the effective date of this Order, ments of 1970 had been in effect on that date, unless such period is extended for good cause by by virtue of its ownership of more than 25 percent the board or by the Federal Reserve Bank of of the outstanding voting shares of Bank. Kansas City pursuant to delegated authority. 4. Ector holds property acquired by it on or By order of the Board of Governors, effective before July 7, 1970, the disposition of which March 20, 1979. would, but for the proviso of section 4(a)(2) of the BHC Act, be necessary or appropriate to Voting for this action: Governors Wallich, Coldwell, effectuate section 4 of the BHC Act if Ector were Partee, and Teeters. Absent and not voting: Chairman to remain a bank holding company beyond De­ Miller. cember 31, 1980, and which property would, but (Signed) Griffith L. Garwood, for such proviso, be “prohibited property” within [seal] Deputy Secretary of the Board. the meaning of § 1103(c) of the Code. Section 1103(g) of the Code provides that any bank hold­ ing company may elect, for purposes of Part VIII Certifications Pursuant to the of subchapter O of chapter 1 of the Code, to have Bank Holding Company Tax Act of 1976 the determination of whether property is “prohib­ Ector Shopping Center, ited property” or is property eligible to be distrib­ Odessa, Texas uted without recognition of gain under section 1101(b)(1) of the Code, made under the BHC Act Prior Certification Pursuant to the as if such Act did not contain the proviso of section Bank Holding Company Tax Act of 1976 4(a)(2) thereof. Ector has made such an election [Docket No. TCR 76-146] by resolution of its board of directors, and has filed a written statement with the board to that Ector Shopping Center, Odessa, Texas effect. (“Ector”) has requested a prior certification pur­ On the basis of the foregoing information, it suant to section 1101(b)(1) of the Internal Revenue is hereby certified that: Code (“Code”), as amended by section 2(a) of (A) Ector is a qualified bank holding corpora­ the Bank Holding Company Tax Act of 1976, that tion, within the meaning of section 1103(b) of the its proposed divestiture of all the 9800 shares now Code, and satisfies the requirements of that sec­ held by Ector of the Frist National Bank of Olney, tion; Olney, Texas (“Bank”), through the distribution of such shares to the four shareholders of Ector, is necessary or appropriate to effectuate the poli­ cies of the Bank Holding Company Act (12 U.S.C. 1. This information derives from Ector’s correspondence with the board concerning its request for this certification, § 1841 et. seq.) (“BHC Act”). Ector’s Registration Statement filed with the board pursuant In connection with this request, the following to the BHC Act, and other records of the board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 Federal Reserve Bulletin □ April 1979 (B) the 9800 shares of Bank that Ector proposes In connection with this request, the following to distribute to its shareholders are all or part of is deemed relevant for purposes of issuing the the property by reason of which Ector controls requested certification:2 (within the meaning of section 2(a) of the BHC 1. First Missouri is a corporation organized Act) a bank or bank holding company; and under the laws of the state of Missouri on No­ (C) the distribution of the 9800 shares of Bank vember 24, 1969. Properties is a corporation or­ is necessary or appropriate to effectuate the poli­ ganized under the laws of the state of Missouri cies of the BHC Act. on May 7, 1970. On May 8, 1970, First Missouri This certification is based upon the repre­ acquired ownership and control of 500 shares, sentations made to the board by Ector and upon representing 100 percent of the outstanding voting the facts set forth above. In the event the board shares, of Properties. should hereafter determine that facts material to 2. On May 7, 1970, First Missouri acquired this certification are otherwise than as represented ownership and control of 13,178 shares, repre­ by Ector, or that Ector has failed to disclose to senting 87.1 percent of the outstanding voting the board other material facts, it may revoke this shares, of Creve Coeur Bank & Trust Company, certification. Creve Coeur, Missouri (“Bank”),3 and thereby, By order of the Board of Governors, acting on the same date, acquired indirect ownership and through its General Counsel, pursuant to delegated control of Olive Boulevard Corporation, Creve authority, (12 C.F.R. § 265.2(b)(3)), effective Coeur, Missouri (“Olive”), a subsidiary of Bank. March 6, 1979. On May 8, 1970, Olive was merged into Proper­ ties. (Signed) Griffith L. Garwood, 3. First Missouri became a bank holding com­ [seal] Deputy Secretary of the Board. pany on December 31, 1970, as a result of the 1970 Amendments to the BHC Act, by virtue of its ownership and control at that time of more than First Missouri Banks, Inc., 25 percent of the outstanding voting shares of Creve Coeur, Missouri Bank, and it registered as such with the board on August 24, 1971. First Missouri would have been Prior Certification Pursuant to the a bank holding company on July 7, 1970, if the Bank Holding Company Tax Act of 1976 BHC Act Amendments of 1970 had been in effect [Docket No. TCR 76-106(c)] on such date, by virtue of its ownership and control First Missouri Banks, Inc., Creve Coeur, Mis­ on that date of more than 25 percent of the out­ souri (“First Missouri”), has requested a prior standing voting shares of Bank. certification pursuant to § 1101(c)(2) of the Inter­ 4. Properties owns four parcels of real property nal Revenue Code (the “Code”), as amended by located in St. Louis County, Missouri, described § 3(a) of the Bank Holding Company Tax Act of in Schedule A hereto, the disposition of which 1976 (the “Tax Act”), that the proposed distri­ would be necessary or appropriate to effectuate bution by First Missouri to its shareholders of section 4 of the BHC Act if First Missouri were shares of a new corporation to be known as to be a bank holding company beyond December Properties One, Inc. (“New Corp”), to be formed 31, 1980. to acquire the property described in Schedule A 5. First Missouri proposes to organize New and now held by First Properties, Inc. (“Proper­ Corp for the sole purpose of receiving the above­ ties”), a subsidiary of First Missouri, is necessary described four parcels of real property from or appropriate to effectuate § 4 of the Bank Hold­ Properties. After the transfer of the four parcels ing Company Act (12 U.S.C. § 1843) (“BHC to New Corp, the shares of New Corp will be Act”).1 1. On December 21, 1978, the board issued a prior certifi­ cation pursuant to the Tax Act relating to the proposed divesti­ ture by First Missouri of certain real property. First Missouri now proposes to divest additional properties by placing them 2. This information derives from First Missouri’s corre­ in New Corp and distributing the shares of New Corp to the spondence with the board concerning its request for certifi­ shareholders of First Missouri. Accordingly, this certification cation, First Missouri’s Registration Statement filed with the amends the board’s certification of December 21, 1978, and board pursuant to the BHC Act, and other records of the board. provides certification for the additional real property that First 3. The name of Bank has since been changed to First Missouri proposes to transfer to New Corp. Missouri Bank of Creve Coeur, Creve Coeur, Missouri. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 367 distributed pro rata to the common shareholders 3, Township 45 North, Range 5 East, City of Creve of First Missouri. Coeur, St. Louis County, Missouri, acquired by 6. First Missouri has committed to the board Olive in 1963. that New Corp will have no directors or officers 2. Lots 4 and 6 of Hutchinson’s Subdivision in common with First Missouri or any subsidiary of the Ellisville Farm, including a tract in Section of First Missouri. 5, Township 44 North, Range 4 East, St. Louis On the basis of the foregoing information, it County, Missouri, acquired by Olive in 1968. is hereby certified that: 3. A portion of the Southeast Quarter of Section (A) First Missouri is a qualified bank holding 2, Township 44 North, Range 3 East, St. Louis corporation, within the meaning of § 1103(b) of County, Missouri, acquired by Olive in 1966. the Code, and satisfies the requirements of that 4. A tract of land in U.S. Survey 163, Town­ subsection; ship 45 North, Range 3 East, St. Louis County, (B) each of the four parcels of real property Missouri, acquired by Olive in 1969. described in Schedule A hereto is “prohibited property” within the meaning of § 1103(c) of the Code; and Republic of Texas Corporation, (C) the exchange of the four parcels of real Dallas, Texas property for shares of New Corp and the distri­ Prior Certification under the bution of such shares is necessary or appropriate Bank Holding Company Tax Act of 1976 to effectuate § 4 of the BHC Act. This certification is based upon the repre­ [Docket No. TCR 76-107] sentations and commitments made to the board by Republic of Texas Corporation, Dallas, Texas First Missouri and upon the facts set forth above. (“Republic”) has requested a prior certification In the event that the board should hereafter deter­ pursuant to § 6158(a) of the Internal Revenue mine that facts material to this certification are Code (the “Code”), as amended by § 3(a) of the otherwise than as represented by First Missouri, Bank Holding Company Tax Act of 1976 (the or that First Missouri has failed to disclose to the “Tax Act”), that the proposed sale by Oxford board other material facts or to fulfill any commit­ Corporation, a subsidiary of Republic, of a fifty ments made to the board in connection herewith, percent joint venture interest in Westgate Com­ it may revoke this certification. pany which owns 37.49 acres of certain real prop­ By order of the Board of Governors of the erty located in Irving, Texas (“Westgate”), is Federal Reserve System, acting through its Gen­ necessary or appropriate to effectuate § 4 of the eral Counsel pursuant to delegated authority (12 Bank Holding Company Act (12 U.S.C. § 1843 C.F.R. § 265.2(b)(3)), effective March 22, 1979. et seq.) (“BHC Act”). Oxford proposes to sell Westgate to an individual purchaser. (Signed) Griffith L. Garwood, In connection with this request, the following [seal] Deputy Secretary of the Board. information is deemed relevant for purposes of issuing the requested certification:1 1. On July 7, 1970, Republic National Bank Schedule A of Dallas (“Old Republic Bank”), a national banking association, indirectly controlled 29.9 First Missouri Banks, Inc. percent of the outstanding voting shares of Oak [Docket No. TCR 76-106(c)] Cliff Bank and Trust Company, Dallas, Texas (“Oak Cliff Bank”). The following is a summary description of the 2. On July 7, 1970, Old Republic Bank indi­ four parcels of real property to be transferred to rectly controlled, through the Howard Corporation New Corp, to which this prior certification relates. (“Howard”), a trusteed affiliate, property the Each of the parcels described below was acquired by First Missouri on May 7, 1970, as a result of First Missouri’s acquisition of Bank, and each was held 1. This information derives from Republic’s correspondence by Olive on that date. with the board concerning its request for this certification, Republic’s Registration Statement filed with the board pursuant 1. Nine acres of real property located on Lot to the BHC Act as well as the Registration Statement of 2 of the Lake House farm Subdivision in Section Republic National Bank and other records of the board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 Federal Reserve Bulletin □ April 1979 disposition of which would be necessary or appro­ qualifying shares) of Republic. New Republic priate to effectuate § 4 of the BHC Act if Old Bank thereby acquired substantially all of the Republic Bank were to continue to be a bank properties of Old Republic Bank and Republic holding company beyond December 31, 1980, thereupon became a bank holding company. By which property is “prohibited property” within virtue of three one-year extensions granted by the the meaning of § 1103(c) of the Code. board, Republic presently has until May 9, 1979, 3. Old Republic Bank became a bank holding to complete the divestitures required by the board’s company on December 31, 1970, as a result of Order of October 25, 1973. the 1970 Amendments to the BHC Act, by virtue 8. As part of the same transaction by which of its indirect control at that time of more than Republic became a bank holding company, in a 25 percent of the outstanding voting shares of Oak transaction to which § 351 of the Code applied, Cliff Bank, and it registered as such with the board Republic acquired beneficial interests in the shares on September 24, 1971. of Howard held by trustees for the benefit of 4. Republic is a corporation that was organized shareholders of New Republic Bank, which shares under the* laws of the state of Delaware on July are shares described in § 2(g)(2) of the BHC Act. 12, 1972, for the purpose of effecting the reorgan­ 9. Westgate was acquired by Howard on No­ ization of Old Republic Bank into a subsidiary of vember 13, 1969, and is a part of the property Republic. of Howard in which Republic acquired a beneficial 5. On September 10, 1973, the board ruled that interest pursuant to § 2(g)(2) of the BHC Act. in the event Republic were to become a bank On the basis of the foregoing information, it holding company through the acquisition of the is hereby certified that: successor by merger to Old Republic Bank, (A) Prior to May 9, 1974, Old Republic Bank Republic would not be regarded as a “successor” was a “qualified bank holding corporation,” to Old Republic as defined in § 2(e) of the BHC within the meaning of subsection (b) of § 1103 Act for the purposes of § 2(a)(6) of the BHC Act, of the Code, and satisfied the requirements of that or as a “company covered in 1970,” as that term subsection. is defined in the BHC Act, and that Republic was (B) New Republic Bank is a corporation that not entitled to the benefit of any grandfather privi­ acquired substantially all of the properties of a leges that Old Republic Bank may have possessed qualified bank holding corporation, and as such pursuant to the proviso in § 4(a)(2) of the BHC is treated as a qualified bank holding corporation Act. for the purposes of § 6158 of the Code, pursuant 6. By Order dated October 25, 1973, the board to § 3(d) of the Tax Act. approved Republic’s application under § 3(a)(1) of (C) Republic is a corporation in control (within the BHC Act to become a bank holding company the meaning of § 2(a)(2) of the BHC Act) of New through the acquisition of 100 percent of the voting Republic Bank, and as such is treated as a qualified shares (less directors’ qualifying shares) of the bank holding corporation for the purposes of successor by merger to Old Republic Bank and § 6158 of the Code, pursuant to § 3(d) of the Tax the indirect acquisition of control of 29.9 percent Act. of the voting shares of Oak Cliff Bank. Pursuant (D) Howard is a subsidiary (within the meaning to the provisions of § 4(a)(2) of the BHC Act, of § 2(d) of the BHC Act) of Republic, and as Republic was required by that order to divest itself, such is treated as a qualified bank holding cor­ within two years from the date as of which it would poration for the purposes of § 6158 of the Code, become a bank holding company, of the imper­ pursuant to § 3(d) of the Tax Act. missible nonbanking interests that would be di­ (E) Westgate is “prohibited property” for the rectly or indirectly controlled by the successor by purposes of § 6158 of the Code; and merger to Old Republic Bank, including such (F) the sale of Westgate is necessary or appro­ impermissible interests held by Howard. priate to effectuate § 4 of the BHC Act. 7. On May 9, 1974, in a transaction described This certification is based upon the repre­ in § 368(a)(1)(A) and § 368(a)(2)(D) of the Code, sentations made to the board by Republic and upon Old Republic Bank was merged into the present the facts set forth above. In the event the board Republic National Bank of Dallas (“New Republic should hereafter determine that facts material to Bank”), a national banking association which was this certification are otherwise than as represented a wholly-owned subsidiary (except for directors’ by Republic, or that Republic has failed to disclose Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 369 to the board other material facts, it may revoke 3. C.I.T. became a bank holding company on this certification. December 31, 1970, as a result of the 1970 By order of the Board of Governors acting Amendments to the BHC Act, by virtue of its through its General Counsel, pursuant to delegated direct ownership and control at that time of more authority (12 C.F.R. § 265.2(B)(3)), effective than 25 percent of the outstanding voting shares March 30, 1979. of NBNA, and it registered as such with the board on October 4, 1971. C.I.T. would have been a (Signed) Griffith L. Garwood, bank holding company on July 7, 1970, if the 1970 [seal] Deputy Secretary of the Board. Amendments of the BHC Act had been in effect on such date, by virtue of its direct ownership and control on that date of more than 25 percent of C.I.T. Financial Corporation, the outstanding voting shares of NBNA. New York, New York 4. C.I.T. holds property acquired by it on or before July 7, 1970, the disposition of which Prior Certification Pursuant to the Bank would be necessary or appropriate to effectuate Holding Company Tax Act of 1976 section 4 of the BHC Act if C.I.T. were to [Docket No. TCR 76-167] continue to be a bank holding company beyond December 31, 1980. This property is “prohibited C.I.T. Financial Corporation, New York, New property” within the meaning of section 1103(c) York (“C.I.T.”), has requested a prior certifi­ of the Code. cation pursuant to section 6158(a) of the Internal 5. Neither C.I.T. nor any subsidiary of C.I.T. Revenue Code (“Code”), as added by section 3(a) owns or controls more than 5 percent of the shares of the Bank Holding Company Tax Act of 1976 of any other bank as such term is defined in section (“Tax Act”), that its sale of 75.1 percent of the 2(c) of the BHC Act or in any company that outstanding voting shares of National Bank of controls a bank. North America, Jamaica, New York (“NBNA”), 6. C.I.T. has advised the board that it intends to NatWest Holdings Inc., Wilmington, Delaware to retain 24.9 percent of the shares of NBNA. In (“Holdings”), a wholly-owned subsidiary of Na­ light of the longstanding relationship between tional Westminster Bank Limited, London, Eng­ C.I.T. and NBNA, the board believes that C.I.T.’s land, is necessary or appropriate to effectuate the retention of a substantial economic interest in policies of the Bank Holding Company Act (12 NBNA would enable C.I.T. to continue to influ­ U.S.C. § 1841 et seq.) (“BHC Act”). ence the management, policies and operations of In connection with this request for a prior cer­ NBNA, which is contrary to one of the principal tification, the following information is deemed purposes of the BHC Act of separating banking relevant for purposes of issuing the requested and commerce. Accordingly, based on the infor­ certification:1 mation presented, the board believes that the sale 1. C.I.T. is a corporation organized under the by C.I.T. of 75.1 percent of the shares of NBNA laws of Delaware on January 24, 1924. will not terminate C.I.T.’s status as a bank holding 2. C.I.T. purchased 6,045,081, representing company, and the retention by C.I.T. of 24.9 97.8 percent, of the outstanding voting shares of percent of the shares of NBNA does not effectuate NBNA on March 22, 1965, and has owned such the purposes of the BHC Act. shares continuously since that date. C.I.T. pres­ On the basis of the foregoing, it is hereby ently owns and controls 100 percent (less direc­ certified that: tors’ qualifying shares) of the outstanding voting (A) C.I.T. is a qualified bank holding corpora­ shares of NBNA.2 tion within the meaning of section 1103(b) of the Code, and satisfies the requirements of that sec­ 1. This information derives from C.I.T.’s correspondence tion; with the board concerning its request for this certification, C.I.T.’s Registration Statement filed with the board pursuant (B) the 75.1 percent of the outstanding voting to the BHC Act, and other records of the board. shares of NBNA that C.I.T. proposes to sell to 2. C.I.T. presently owns 6,215,494 of the outstanding vot­ Holdings are part of the property by reason of ing shares of NBNA. Under section 6158 of the Code, shares of NBNA acquired by C.I.T. after July 7, 1970, generally which C.I.T. controls within the meaning of sec­ do not qualify for the tax benefits of section 6158(a) of the tion 2(a) of the BHC Act a bank or bank holding Code when sold by an otherwise qualified bank holding com­ company; and pany. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 Federal Reserve Bulletin □ April 1979 (C) the sale of such shares of NBNA is neces­ Under the provisions of § 2(g)(3) of the Act, sary or appropriate to effectuate the policies of the shares transferred after January 1, 1966, by any BHC Act.3 bank holding company to a transferee that is in­ This certification is based upon the facts pro­ debted to the transferor or has one or more of­ vided to the board by C.I.T. In the event that the ficers, directors, trustees, or beneficiaries in com­ board should hereafter determine that the facts mon with or subject to control by the transferor, material to this certification are otherwise than as are deemed to be indirectly owned or controlled provided by C.I.T., or that C.I.T. has failed to by the transferor unless the board, after opportu­ disclose to the board other material facts, the board nity for hearing, determines that the transferor is may revoke this certification. not in fact capable of controlling the transferee. By order of the Board of Governors, effective St. Johns Group is a closely-held corporation March 16, 1979. which was formed for the purpose of purchasing Charter Mortgage Company and none of its share­ Voting for this action: Chairman Miller and Gover­ holders are presently related to Charter. There is nors Wallich, Coldwell, Partee, and Teeters. no evidence that the financial resources of St. Johns Group and its principals are not sufficient to repay the debt owed by St. Johns Group to (Signed) Griffith L. Garwood, Charter, and Charter has not retained any security [seal] Deputy Secretary of the Board. interest in Bank or Charter Mortgage Company. There are no common directors or officers between Orders Under Section 2 Charter and St. Johns Group or Bank, and all of Bank Holding Company Act transactions between Charter and St. Johns Group or Bank are conducted in the ordinary course of The Charter Company, business. Moreover, it appears that the sale by Jacksonville, Florida Charter of its interest in Charter Mortgage Com­ pany and Bank was negotiated at arm’s length. Order Granting Determination Furthermore, Charter’s board of directors adopted Under the Bank Holding Company Act a resolution to the effect that Charter does not, The Charter Company, Jacksonville, Florida and will not attempt to, exercise a controlling (“Charter”), a bank holding company within the influence over St. Johns Group or Bank. In addi­ meaning of the Bank Holding Company Act of tion, the board of directors of St. Johns Group 1956, as amended, has requested a determination and Bank adopted resolutions to the effect that they pursuant to section 2(g)(3) of the Act (12 U.S.C. are not and will not be controlled by Charter. § 1841(g)(3)) that it is not in fact capable of Finally, the principal shareholders of St. Johns controlling Jacksonville National Bank, Jackson­ Group have made affidavits that they are not, and ville, Florida (“Bank”), St. Johns Group, Inc., will not be subject to Charter’s control. Jacksonville, Florida, or the principals of St. Johns Based on these and other facts of record, the Group, Inc., Jacksonville, Florida, or the principals of St. Johns Group, Inc., notwith­ 1. Effective December 31, 1976, Charter sold its shares of standing the indebtedness incurred by St. Johns Bank to Mr. John D. Uible, and sold Charter Mortgage Group to Charter as a result of the transfer.1 Company (“CMC”) to St. Johns Group, Inc., the shares of which were owned by Mr. Uible. The aggregate purchase price for CMC and Bank was approximately $14.7 million, of which 3. While the board believes that the proposed divestiture $1,345 million was in the form of a promissory note from by C.I.T. of 75.1 percent of the outstanding voting shares St. Johns Group to Charter. In its interpretation of section of NBNA will not terminate C.I.T.’s status as a bank holding 2(g)(3) the board has taken the position that the presumption company, the divestiture of C.I.T. of 75.1 percent of the shares of that section applies to individual transferees, as well as to of NBNA is a step toward the separation of banking and parents and subsidiaries of transferees (12 C.F.R. § 225.138). nonbanking business, and the board believes that such divesti­ In this case, a principal shareholder of the transferee should ture may be regarded as necessary or appropriate to effectuate be regarded as a parent of the transferee for the purposes of the policies of the BHC Act. In this connection, the board § 2(g)(3) of the Act. Thus, while St. Johns Group, Inc. was notes the divestiture of the remaining 24.9 percent of the shares not directly a transferee of Bank, Mr. Uible was the transferee of NBNA held by C.I.T. would also be necessary or appro­ of Bank. Moreover, two former officers of Charter acquired priate to effectuate the policies of the BHC Act, and the board shares of Bank, as well as St. Johns Group, from Mr. Uible, would be prepared to issue a prior certification for the divesti­ and these three individuals guaranteed payment of St. Johns ture of those shares. Group’s indebtedness to Charter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 371 board has determined that Charter is not, in fact, TSA’s fair market value, and the guarantee exe­ capable of controlling St. Johns Group or Bank, cuted by TSA’s transferee approximates only 3 and that the request of Charter for a determination percent of TSA’s fair market value. TSA’s trans­ pursuant to § 2(g)(3) be and hereby is granted. feree is not personally liable on TSA’s note to Any material change in the facts or circumstances UVB. There are no common directors or officers relied upon in making this determination or any between UVB and TSA, nor is TSA’s transferee material breach of any of the commitments upon an officer or director of UVB. Moreover, it appears which the decision is based could result in recon­ that the sale by UVB of its interest in TSA was sideration of the determination made herein. negotiated at arm’s length. In addition, UVB’s By order of the Board of Governors, effective Board of Directors has adopted a resolution to the March 2, 1979. effect that UVB does not, and will not attempt to, exercise control or controlling influence over Voting for this action: Chairman Miller and Governors TSA’s transferee and that should UVB institute Wallich, Coldwell, and Partee. Absent and not voting: foreclosure proceedings on TSA it will immedi­ Governor Teeters. ately notify the board and divest any portion of (Signed) Theodore E. Allison, TSA so acquired within six months. In addition, [seal] Secretary of the Board. TSA’s transferee has indicated that UVB is incapable of controlling or exerting a controlling United Virginia Bancshares, Incorporated, influence over him. Richmond, Virginia Accordingly, it is ordered, that the request of UVB for a determination pursuant to section Order Granting Determination 2(g)(3) is granted. This determination is based on Under the Bank Holding Company Act representations made to the board by UVB and TSA’s transferee. In the event that the board United Virginia Bancshares, Incorporated should hereafter determine that facts material to (“UVB”), a bank holding company within the this determination are otherwise than as repre­ meaning of the Bank Holding Company Act of sented, or that UVB or TSA’s transferee has failed 1956, as amended, has requested a determination to disclose to the board other material facts, this pursuant to section 2(g)(3) of the Act (12 U.S.C. determination may be revoked, and any change § 1841(g)(3)) that ii is not in fact capable of in the facts and circumstances relied upon by the controlling Towne Square Apartments, Newport board in making this determination could result News, Virginia (“TSA”), or the individual trans­ in the board reconsidering the determination made feree of a one-half interest in TSA, notwith­ herein. standing the indebtedness to UVB incurred by By order of the Board of Governors, acting TSA as a result of the transfer, and notwith­ through its General Counsel, pursuant to delegated standing the fact that TSA’s transferee guaranteed a portion of such indebtedness. authority (12 C.F.R. § 265.2(b)(1)), effective March 30, 1979. Under the provisions of section 2(g)(3) of the Act, shares transferred after January 1, 1966, by (Signed) Griffith L. Garwood, any bank holding company to a transferee that is [seal] Deputy Secretary of the Board. indebted to the transferor or has one or more officers, directors, trustees, or beneficiaries in common with or subject to control by the trans­ Order Approving feror, are deemed to be indirectly owned or con­ Application for Merger of Banks trolled by the transferor unless the board, after Elliott State Bank, opportunity for hearing, determines that the trans­ Jacksonville, Illinois feror is not in fact capable of controlling the transferee. First National Bank of Jacksonville On the basis of the following facts, it is hereby determined that UVB is incapable of controlling Elliott State Bank, Jacksonville, Illinois (“Ap­ TSA or its transferee. The equity of TSA’s trans­ plicant”), a state member bank of the Federal feree in TSA, based on fair market value, exceeds Reserve System, has applied, pursuant to the Bank his indebtedness to UVB. The total indebtedness Merger Act (12 U.S.C. § 1828(c)), for the board’s of TSA to UVB is approximately 10 percent of approval to merge with First National Bank of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 Federal Reserve Bulletin □ April 1979 Jacksonville, Jacksonville, Illinois (“Bank”), all the facts of record, including the financial under the charter and title of Applicant. Incident condition of Bank, it is the board’s opinion that to the proposed merger, the present office of Bank the substantially adverse effects associated with would become a branch office of the resulting this proposal are clearly outweighed by the con­ bank. siderations discussed below. In view of the condition of Bank, the Comp­ The financial and managerial resources and fu­ troller of the Currency, the primary supervisory ture prospects of Applicant are regarded as gener­ authority for Bank, has advised the board of the ally satisfactory, particularly in light of commit­ existence of a situation requiring expeditious ac­ ments by Applicant to, among other actions, pro­ tion by the board in accordance with the provi­ vide additional equity capital to Applicant upon sions of section 1828(c) of the Act. In view of consummation of the proposal. Moreover, in view the situation set forth below, the comment period of the financial condition of Bank, and on the basis afforded interested parties to submit comments and of the information before the board, it is apparent views has been abbreviated. The board has con­ that a situation exists at Bank requiring expeditious sidered the application and the comments received action pursuant to the expediting provision of from the Comptroller of the Currency in light of section 1828(c) of the Act in order to safeguard the factors set forth in the Act, including the effect depositors of Bank. While the board would prefer of the proposal on competition, the financial and a less anticompetitive merger as a means for serv­ managerial resources and prospects of the banks ing the convenience and needs of the public, it involved, and the convenience and needs of the appears that such an alternative is not readily communities to be served. available. Thus, banking factors and convenience Applicant ($81.9 million in deposits) ranks 122d and needs considerations lend such significant in the state of Illinois, and controls 0.1 percent weight toward approval as to clearly outweigh in of deposits in all commercial banks in the state.1 the public interest the substantially adverse effects Acquisition of Bank ($35.9 million in deposits) associated with this proposal. would increase Applicant’s share of bank deposits It is the board’s judgment that any disposition in Illinois by only 0.05 percent, and would not of the application other than by approval would significantly increase the concentration of banking be inconsistent with the public interest and the resources in Illinois. proposed transaction should be approved. Accord­ Applicant ($81.9 million in deposits) ranks 122nd ingly, the application to merge, and incident in the state of Illinois, and controls 0.1 percent thereto to establish a branch, is approved for the 33.7 percent of market deposits. Bank is the third reasons summarized above. The transaction shall largest bank in the relevant market, and controls not be made (a) before the fifth calendar day after 14.8 percent of the market’s commercial bank the effective date of this Order or (b) later than deposits. Consummation of the proposal would three months after the effective date of this Order, have substantially adverse competitive effects unless such period is extended for good cause by upon existing competition. In addition, the board the board or by the Federal Reserve Bank of St. views with serious concern the increase in con­ Louis, pursuant to delegated authority. centration of banking resources within the relevant By order of the Board of Governors, effective market that would result from consummation of March 2, 1979. this proposal, and regards such an increase as a significantly adverse factor. However, based upon Voting for this action: Chairman Miller and Gover­ nors Wallich, Coldwell, and Partee. Absent and not voting: Governor Teeters. 1. All banking data are as of June 30, 1978. (Signed) Theodore E. Allison, 2. The Jacksonville banking market is approximated by Morgan County and Scott County, Illinois. [SEAL] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 373 Orders Approved Under Bank Holding Company Act By the Board of Governors During March 1979 the Board of Governors approved the applications listed below. Copies are available upon request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Board action (effective Applicant Bank(s) date) Citizens Bankers, Inc., Baytown State Bank, March 29, 1979 Baytown, Texas Baytown, Texas Citizens Bancorporation, The Citizens National Bank of March 15, 1979 Charles City, Iowa Charles City, Charles City, Iowa Fennimore Bancorporation, The First State Bank, March 5, 1979 Inc., Fennimore, Wisconsin Fennimore, Wisconsin First Banc Group of Ohio, The Marion County Bank, March 12, 1979 Inc., Columbus, Ohio Marion, Ohio First Northern Bancorporation, Alaska Pacific Bank, March 30, 1979 Anchorage, Alaska Anchorage, Alaska Manufacturers National American Heritage Bancshares, March 26, 1979 Corporation, Detroit, Inc., East Lansing, Michigan Michigan Treleco, Inc., State Bank of Trenton, March 1, 1979 Trenton, Nebraska Trenton, Nebraska Yellow Medicine Bancshares, Yellow Medicine County Bank, March 13, 1979 Inc., Granite Falls, Granite Falls, Minnesota Minnesota Sections 3 and 4 Nonbanking company Effective Applicant Bank(s) (or activity) date Pioneer Bancorporation, Inc., Pioneer Bank and Trust To engage de novo March 23, 1979 St. Louis, Missouri Company, Maplewood, in credit-related in- Missouri surance activities First Bancorporation of The First National Bank To engage in credit- March 28, 1979 Holdenville, Inc., and Trust Company of related insurance Holdenville, Oklahoma Holdenville, Holdenville, activities Oklahoma Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 Federal Reserve Bulletin □ April 1979 Section 4 Nonbanking company Effective Applicant (or activity) date Chevalier, Inc., To continue acting as agent March 26, 1979 Postville, Iowa for the sale of credit life and credit accident and health insurance. By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date First Bancorp, Inc., Forney Bank and Trust Dallas March 21, 1979 Corsicana, Texas Company, Forney, Texas Section 4 Nonbanking Company Reserve Effective Applicant (or activity) Bank date Gary-Wheaton Corporation, G-W Life Insurance Company, Chicago March 20, 1979 Wheaton, Illinois Phoenix, Arizona Third National Corporation, Third National Life In­ Atlanta February 23, 1979 Nashville, Tennessee surance Company, Phoenix, Arizona Order Approved Under Bank Merger Act Reserve Effective Applicant Bank(s) Bank date The Midwest Bank & Trust The Midwest Bank & Trust Cleveland March 23, 1979 Company, Cleveland, Ohio Company of Portage County, Aurora, Ohio Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 375 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 Society Corporation, First National Bank of Cleveland February 7, 1979 Cleveland, Ohio Clermont County, Bethal, Ohio Orders Approved Under Bank Merger Act Reserve Effective Applicant Bank(s) Bank date The Central Trust The Central Trust Company Cleveland February 14, 1979 Company, Reynolds­ of Zanesville, burg, Ohio Zanesville, Ohio 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. California Life Corporation v. Board of Gov­ Independent Bankers Association of Texas v. First ernors, filed January 1979, U.S.C.A. for the National Bank in Dallas, et al., filed July 1978, District of Columbia. U.S.C.A. for the Northern District of Texas. Hunter Holding Company v. Board of Governors, Mid-Nebraska Bancshares, Inc. v. Board of Gov­ filed December 1978, U.S.C.A. for the Eighth ernors, filed July 1978, U.S.C.A. for the Dis­ Circuit. trict of Columbia. Consumers Union of the United States v. G. NCNB Corporation v. Board of Governors, filed William Miller, et al., filed December 1978, June 1978, U.S.C.A. for the Fourth Circuit. U.S.D.C. for the District of Columbia. United States League of Savings Associations v. Commercial National Bank, et al., v. Board of Board of Governors, filed May 1978, U.S.D.C. Governors, filed December 1978, U.S.C.A. for for the District of Columbia. the District of Columbia. Security Bancorp and Security National Bank v. Ella lackson et al., v. Board of Governors, filed Board of Governors, filed March 1978, November 1978, U.S.C.A. for the Fifth Circuit. U.S.C.A. for the Ninth Circuit. Metro-North State Bank, Kansas City v. Board Michigan National Corporation v. Board of Gov­ of Governors, filed October 1978, U.S.C.A. for ernors, filed January 1978, U.S.C.A. for the the Eighth Circuit. Sixth Circuit. Manchester-Tower Grove Community Organi­ Wisconsin Bankers Association v. Board of Gov­ zation/ACORN v. Board of Governors, filed ernors, filed January 1978, U.S.C.A. for the September 1978, U.S.C.A. for the District of District of Columbia. Columbia. Vickars-Henry Corp. v. Board of Governors, filed Beckley v. Board of Governors, filed July 1978, December 1977, U.S.C.A. for the Ninth Cir­ U.S.D.C. for the Northern District of Illinois. cuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 Federal Reserve Bulletin □ April 1979 Emch v. The United States of America, et al., Robert Farms, Inc. v. Comptroller of the Cur­ filed November 1977 for the Eastern District of rency, et al., filed November 1975, U.S.D.C. Wisconsin. for the Southern District of California. Central Bank v. Board of Governors, filed Oc­ Florida Association of Insurance Agents, Inc. v. tober 1977, U.S.C.A. for the District of Co­ Board of Governors, and National Association lumbia. of Insurance Agents, Inc. v. Board of Gov­ Investment Company Institute v. Board of Gov­ ernors, filed August 1975, actions consolidated ernors, filed September 1977, U.S.D.C. for the in U.S.C.A. for the Fifth Circuit. District of Columbia. David R. Merrill, et al., v. Federal Open Market BankAmerica Corporation v. Board of Gover­ Committee of the Federal Reserve System, filed nors, filed May 1977, U.S.D.C. for the North­ May 1975, U.S.D.C. for the District of Colum­ ern District of California. bia. BankAmerica Corporation v. Board of Gover­ Bankers Trust New York Corporation v. Board nors, filed May 1977, U.S.C.A. for the Ninth of Governors, filed May 1973, U.S.C.A. for Circuit. the Second Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Al Financial and Business Statistics Contents Domestic Financial Statistics Weekly Reporting Commercial Banks A3 Monetary aggregates and interest rates Assets and Liabilities of— A4 Factors affecting member bank reserves A20 All reporting banks A5 Reserves and borrowings of member A21 Banks in New York City banks A22 Banks outside New York City A6 Federal funds transactions of money A23 Balance sheet memoranda market banks A24 Commercial and industrial loans A25 Gross demand deposits of individuals, Policy Instruments partnerships, and corporations AS Federal Reserve Bank interest rates Financial Markets A9 Member bank reserve requirements A10 Maximum interest rates payable on A25 Commercial paper and bankers time and savings deposits at federally acceptances outstanding insured institutions A26 Prime rate charged by banks on All Federal Reserve open market short-term business loans transactions A26 Terms of lending at commercial banks A27 Interest rates in money and capital Federal Reserve Banks markets A28 Stock market—Selected statistics A12 Condition and F.R. note statements A13 Maturity distribution of loan and A29 Savings institutions—Selected assets security holdings and liabilities Monetary and Credit Aggregates Federal Finance A13 Bank debits and deposit turnover A30 Federal fiscal and financing operations A14 Money stock measures and components A31 U.S. budget receipts and outlays A15 Aggregate reserves and deposits of A32 Federal debt subject to statutory member banks limitation A15 Loans and investments of all A32 Gross public debt of U.S. Treasury— commercial banks Types and ownership A33 U.S. government marketable Commercial Bank Assets and Liabilities securities—Ownership, by maturity 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, September 30, 1978 agencies—Debt outstanding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin □ April 1979 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 A38 Nonfinancial corporations—Assets and A58 Selected U.S. liabilities to foreign liabilities official institutions A38 Business expenditures on new plant and equipment Reported by Banks in the United States A39 Domestic finance companies—Assets and liabilities; business credit A59 Liabilities to foreigners A61 Banks’ own claims on foreigners A62 Banks’ own and domestic customers’ Real Estate claims on foreigners A40 Mortgage markets A63 Banks’ own claims on unaffiliated A41 Mortgage debt outstanding foreigners A63 Liabilities to and claims on foreigners Consumer Installment Credit Securities Holdings and Transactions A42 Total outstanding and net change A64 Marketable U.S. Treasury bonds and A43 Extensions and liquidations 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 A66 Short-term liabilities to and claims on A46 Nonfinancial business activity— foreigners Selected measures A67 Long-term liabilities to and claims on A46 Output, capacity, and capacity foreigners utilization A47 Labor force, employment, and unemployment Interest and Exchange Rates A48 Industrial production—Indexes and A68 Discount rates of foreign central banks gross value A68 Foreign short-term interest rates A50 Housing and construction A51 Consumer and wholesale prices A52 Gross national product and income A69 Guide to Tabular Presentation A53 Personal income and saving and Statistical Releases Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1978 1978 1979 Ql Q2 Q3 Q4 Oct. Nov. Jan. Feb. Monetary and credit aggregates (annual rates of change, seasonally adjusted in per cent)13 1 Me T m o b ta e l r . . b .. a .. n .. k .. . r .. e .. s . e .. r . v .. e .. s ................................................. 8.9 6.2 8.6 2.3 5.1 -3.6 -0.1 6.0 -20.9 2 Required................................................................ 6.7 8.6 2.1 6.0 -5.4 -0.4 6.6 -20.9 3 Nonborrowed......................................................... 14.5 0.6 6.6 4.6 -1.2 13.4 -4.9 2.2 -20.6 4 Monetary base1...................................................... 9.9 7.6 9.3 8.4 8.0 5.7 7.9 8.6 -0.4 Concepts of money2 5 M-l.......................................................................... 6.6 9.2 8.1 4.4 1.7 -2.0 1.7 -5.3 -3.7 6 M -l....................................................................... 5.0 7.2 6.0 r2.4 '0.6 -5.1 -1.6 r —8.4 -7.0 7 M-2.......................................................................... 7.0 8.4 9.9 7.7 6.5 4.7 2.7 -1.2 2.2 8 M-3.......................................................................... 8.1 8.4 10.4 9.3 6.7 5.5 '2.8 4.7 Time and savings deposits Commercial banks: 9 Total.................................................................... 12.5 11.5 11.3 12.4 8.5 21.9 5.1 9.0 8.6 10 Savings................................................................. 2.0 3.8 2.3 -0.9 -1.6 -9.6 -7.5 -13.0 -12.0 11 Other time........................................................... 11.7 11.4 18.5 19.2 19.3 24.5 12.0 12.7 20.3 12 Thrift institutions 3.............................................. 9.7 8.5 11.1 11.6 12.0 9.6 9.3 '8.5 8.0 13 Total loans and investments at commercial banks4, 10.1 14.9 10.8 7.7 9.8 6.7 1.1 '19.2 11.3 1978 1979 1978 1979 Q2 Q3 Q4 Ql Jan. Feb. Mar. Interest rates (levels, per cent per annum) Short-term rates 14 Federal funds 5....................................... 7.28 8.09 9.58 10.07 9.76 10.03 10.07 10.06 10.09 15 Federal Reserve discount6.................... 6.78 7.50 9.09 9.50 9.50 9.50 9.50 9.50 9.50 16 Treasury bills (3-month market yield) 7 6.48 7.31 8.57 9.38 8.64 9.08 9.35 9.32 9.48 17 Commercial paper (90- to 119-day)7 -8. 7.16 8.03 9.83 10.04 10.14 10.37 10.25 9.95 9.90 Long-term rates Bonds: 18 U.S. Government®............................. 8.43 8.53 8.78 9.03 8.75 8.90 8.98 9.03 9.08 19 State and local government10.......... 6.02 6.16 6.28 6.37 6.19 6.51 6.47 6.31 6.33 20 Aaa utility (new issue)11................... 8.98 8.94 9.23 9.58 9.27 9.28 9.54 9.53 9.62 21 Conventional mortgages12................... 9.58 9.80 10.12 10.33 10.10 10.30 10.30 10.35 10.35 1 Includes total reserves (member bank reserve balances in the current 6 Rate for the Federal Reserve Bank of New York. week plus vault cash held two weeks earlier), currency in circulation 7 Quoted on a bank-discount basis. (currency outside the U.S. Treasury, Federal Reserve Banks and the vaults 8 Beginning Nov. 1977, unweighted average of offering rates quoted by of commercial banks), and vault cash of nonmember banks. five dealers. Previously, most representative rate quoted by these dealers. 2 M-l equals currency plus private demand deposits adjusted. 9 Market yields adjusted to a 20-year maturity by the U.S. Treasury. M-l -f equals M-l plus savings deposits at commercial banks, NOW 10 Bond Buyer series for 20 issues of mixed quality. accounts at banks and thrift institutions, credit union share draft ac­ 11 Weighted averages of new publicly offered bonds rated Aaa, Aa, counts, and demand deposits at mutual savings banks. and A by Moody’s Investors Service and adjusted to an Aaa basis. M-2 equals M-l plus bank time and savings deposits other than large Federal Reserve compilations. negotiable certificates of deposit (CDs). 12 Average rates on new commitments for conventional first mortgages M-3 equals M-2 plus deposits at mutual savings banks, savings and on new homes in primary markets, unweighted and rounded to nearest loan associations, and credit union shares. 5 basis points, from Dept, of Housing and Urban Development. 3 Savings and loan associations, mutual savings banks, and credit 13 Unless otherwise noted, rates of change are calculated from average unions. amounts outstanding in preceding month or quarter. 4 Quarterly changes calculated from figures shown in table 1.23. 5 Seven-day averages of daily effective rates (average of the rates on a given date weighted by the volume of transactions at those rates). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics □ April 1979 1.11 FACTORS AFFECTING MEMBER BANK RESERVES Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for weeks ending- Factors 1979 1979 Jan. Feb. Mar.p Feb. 14 Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21 p Mar. 28 *» SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding. ... 128,749 125,953 126,382 125,041 127,213 125,889 126,479 124,911 127,097 125,968 2 U.S. government securities1.......... 105,287 103,335 105,359 104,308 102.384 101.098 103,896 104,111 106,041 105.979 3 Bought outright......................... 105,151 103,087 104,707 103,989 102.384 101.098 103,594 103,142 104,905 105.979 4 Held under repurchase agree­ ments .................................. 136 248 652 319 302 969 1,136 5 Federal agency securities............... 7,905 7,528 7,633 7,560 7.487 7.487 7,498 7,683 7,856 7.464 6 Bought outright......................... 7,878 7,487 7,468 7,487 7.487 7.487 7,484 7,464 7,464 7.464 7 Held under repurchase agree­ ments .................................. 27 41 165 73 14 219 392 8 Acceptances................................... 56 88 152 181 93 261 260 9 Loans............................................. 994 973 998 1,054 938 1,083 1,027 882 1,023 1,082 10 Float.............................................. 9,882 8,955 5,960 6,433 12,043 11,558 7,857 5,841 5,510 5,033 11 Other Federal Reserve assets.... 4,625 5,074 6,280 5,505 4,360 4,663 6,108 6,133 6,407 6,410 12 Gold stock........................................ 11,625 11,553 11,514 11,544 11,544 11,544 11,544 11,540 11,506 11,481 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........ 11,867 11,949 12,050 11,931 11,969 11,986 12,013 12,025 12,062 12,076 ABSORBING RESERVE FUNDS 15 Currency in circulation.................... 112,340 110,951 111,764 111,019 111,153 111,057 111,336 111,970 111,888 111,747 16 Treasury cash holdings..................... 251 303 358 296 312 327 342 357 362 362 Deposits, other than member bank reserves, with Federal Reserve Banks: 17 Treasury......................................... 3,379 3,502 3,204 3,145 3,534 3,660 3,807 2,717 2,873 3,102 18 Foreign.......................................... 288 276 276 261 286 269 270 292 279 262 19 Other.............................................. 826 867 785 938 879 840 923 717 852 694 20 Other Federal Reserve liabilities and capital........................................ 4,522 4,371 4,434 4,164 4,447 4,721 4,224 4,309 4,440 4,611 21 Member bank reserves with Federal Reserve Banks........................... 31,935 30,485 30,425 29,993 31,414 29,846 30,434 29,415 31,271 30,049 End-of-month figures Wednesday figures 1979 1979 Jan. Feb. Feb. 14 Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21® SUPPLYING RESERVE FUNDS 22 Reserve bank credit outstanding.... 125,406 125,778 130,582 133,633 121,711 125,778 120,473 132,654 119,572 125,683 23 U.S. government securities1.......... 101.279 103.486 110,940 106,784 95.833 103.486 96.558 106,492 97.142 104.705 24 Bought outright......................... 101.279 103.486 109,260 105,540 95.833 103.486 96.558 103,803 97.142 104.705 25 Held under repurchase agree­ ments .................................. 1,680 1,244 2,689 26 Federal agency securities.............. 7.507 7.487 7,832 7,851 7.487 7.487 7.464 8,354 7.464 7.464 27 Bought outright......................... 7.507 7.487 7,464 7,487 7.487 7.487 7.464 7,464 7.464 7.464 28 Held under repurchase agree­ ments .................................. 368 364 890 29 Acceptances............................. 204 708 757 30 Loans....................................... 4,366 1,603 964 1,129 1,019 1,603 2,042 1,438 1,838 1,495 31 Float........................................ 6,578 8,631 4,237 11,773 12,862 8,631 8,380 9,408 6,619 5,510 32 Other Federal Reserve assets. 5,676 4,571 6,405 5,388 4,510 4,571 6,029 6,205 6,509 6,509 33 Gold stock......................................... 11,592 11,544 11,479 11,544 11,544 11,544 11,544 11,532 11,481 11,481 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........ 11,912 12,018 12,114 11,969 11,969 12,018 12,025 12,025 12,070 12,085 ABSORBING RESERVE FUNDS 36 Currency in circulation.............. 110,662 111,334 111,988 111,396 111,437 111,334 111,955 112,265 112,020 112,228 37 Treasury cash holdings..................... 289 339 385 308 325 339 349 350 369 374 Deposits, other than member bank reserves, with Federal Reserve Banks: 38 Treasury.......................................... 3,522 3,443 5,726 3,276 3,185 3,443 2,512 3,318 2,106 3,178 39 Foreign........................................... 339 343 303 312 315 343 276 262 225 271 40 Other 2............................................. 874 779 708 902 752 779 883 746 677 661 41 Other Federal Reserve liabilities and capital...................................... 4,594 4,679 4,750 4,084 4,756 4,679 4,122 4,482 4,304 4,775 42 Member bank reserves with Federal Reserve Banks........................... 29,931 29,723 31,615 38,168 25,754 29,723 25,245 36,088 24,723 29,063 1 Includes securities loaned—fully guaranteed by U.S. government Note. For amounts of currency and coin held as reserves, see table securities pledged with Federal Reserve Banks—and excludes (if any) 1.12. securities sold and scheduled to be bought back under matched salepurchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Banks A5 1.12. RESERVES AND BORROWINGS Member Banks Millions of dollars Monthly averages of daily figures Reserve classification 1977 1978 1979 Dec. July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.? All member banks Reserves: 1 At Federal Reserve Banks.......... 27,057 28,570 28,079 28,010 28,701 29,853 31,158 31,935 30,485 30,425 2 Currency and coin...................... 9,351 9,542 9,512 9,605 9,654 9,794 10,330 11,093 10,074 9,775 3 Total held1................................... 36,471 38,189 37,666 37,689 38,434 39,728 41,572 43,167 40,703 40,336 4 Required.................................. 36,297 38,049 37,404 37,614 38,222 39,423 41,447 42,865 40,494 40,060 5 Excess1..................................... 174 140 262 75 212 305 125 302 209 276 Borrowings at Federal Reserve Banks:2 6 Total............................................ 558 1,286 1,147 1,068 1,261 722 874 994 973 998 7 Seasonal...................................... 54 143 188 191 221 185 134 112 114 120 Large banks in New York City 8 Reserves held................................... 6,244 6,606 6,334 6,182 6,428 6,682 7,120 7,808 6,995 6,825 9 Required...................................... 6,279 6,581 6,290 6,251 6,349 6,658 7,243 7,690 6,976 6,845 10 Excess.......................................... -35 25 44 -69 79 24 -123 118 19 -20 11 Borrowings2.................................... 48 129 58 78 157 48 99 117 45 Large banks in Chicago 12 Reserves held................................... 1,593 1,708 1,648 1,655 1,672 1,791 1,907 2,011 1,824 1,822 1,613 1,707 1,646 1,650 1,649 1,765 1,900 2,010 1,823 1,809 14 Excess.......................................... -20 1 2 5 23 26 7 1 1 13 15 Borrowings2.................................... 26 20 3 35 14 4 10 23 10 25 Other large banks 16 Reserves held................................... 13,993 14,553 14,502 14,564 14,862 15,547 16,446 16,942 16,055 15,788 17 Required...................................... 13,931 14,569 14,423 14,541 14,867 15,447 16,342 16,923 16,018 15,801 18 Excess.......................................... 62 -16 79 23 -5 100 104 19 37 -13 19 Borrowings2.................................... 243 499 417 363 408 194 276 269 275 216 All other banks 20 Reserves held................................... 14,641 15,322 15,182 15,288 15,472 15,708 16,099 16,406 15,829 15,667 21 Required...................................... 14,474 15,192 15,045 15,172 15,357 15,553 15,962 16,242 15,677 15,605 22 Excess.......................................... 167 130 137 116 115 155 137 164 152 62 241 638 669 592 682 476 489 585 688 712 Weekly averages of daily figures for weeks ending— 1979 Jan. 24 Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21? Mar. 28p All member banks Reserves: 24 At Federal Reserve Banks........ 31,673 31,465 30,688 29,993 31,414 29,846 30,434 29,415 31,271 30,049 25 Currency and coin..................... 11,168 11,001 10,684 10,554 9,321 9,737 9,818 10,394 9,133 9,753 26 Total held*................................. 42,983 42,607 41,517 40,691 40,878 39,726 40,394 39,950 40,537 39,934 27 Required................................ 42,967 42,267 41,238 40,580 40,521 39,637 40,190 39,849 40,349 39,856 28 Excess1................................... 16 340 279 111 357 89 204 101 188 78 Borrowings at Federal Reserve Banks: 2 29 Total.......................................... 923 1,428 817 1,054 938 1,083 1,027 882 1,023 1,082 30 Seasonal..................................... 105 112 102 110 123 123 108 109 123 133 Large banks in New York City 31 Reserves held................................. 7,605 7,327 7,435 6,977 7,126 6,441 6,844 6,887 6,995 6,504 32 Required.................................... 7,658 7,345 7,294 7,064 7,051 6,497 6,849 6,871 6,962 6,648 33 Excess......................................... -53 -18 141 -87 75 -56 -5 16 33 -144 34 Borrowings2.................................. 14 299 70 36 40 55 Large banks in Chicago 35 Reserves held................................. 1,942 1,959 1.873 1,850 1,832 1,741 1,808 1,804 1,863 1,740 36 Required.................................... 1,941 1,950 1.873 1,857 1,827 1,735 1,805 1,815 1,836 1,783 37 Excess......................................... 1 9 — 7 5 6 ‘ 3 -11 27 -43 38 Borrowings2.................................. 3 90 19 13 2 4 43 2 69 Other large banks 39 Reserves held................................. 16,951 16,886 16,230 16,149 16,102 15,737 15,992 15,672 15,941 15,595 40 Required.................................... 16,974 16,745 16.218 16,113 16,006 15,736 15,948 15,688 15,902 15,723 41 Excess........................................ -23 141 12 36 96 1 44 -16 39 -128 42 Borrowings2.................................. 198 340 178 415 196 309 267 247 153 213 All other banks 43 Reserves held................................ 16,485 16,435 15,979 15,715 15,818 15,807 15,750 15,587 15,689 15,691 44 Required.................................... 16,394 16,227 15,853 15,546 15,637 15,669 15,588 15,475 15,649 15,702 45 Excess........................................ 91 208 126 169 181 138 162 112 40 -11 46 Borrowings2.................................. 708 699 620 626 740 770 647 597 761 814 1 Adjusted to include waivers of penalties for reserve deficiencies in nonmember bank joins the Federal Reserve System. For weeks for which accordance with board policy, effective Nov. 19, 1975, of permitting figures are preliminary, figures by class of bank do not add to total transitional relief on a graduated basis over a 24-month period when a because adjusted data by class are not available. nonmember bank merges into an existing member bank, or when a 2 Based on closing figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics □ April 1979 1.13 FEDERAL FUNDS TRANSACTIONS Money Market Banks Millions of dollars, except as noted 1979, week ending Wednesday Jan. 31 Feb, 7 Feb. 14 Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Total, 46 banks Basic reserve position 1 Excess reserves1................................... 46 150 4 104 1 14 23 -182 Less: 2 Borrowings at Federal Reserve Banks........................................ 439 36 116 33 75 186 78 135 73 3 Net interbank federal funds 12,928 14,316 16,084 16,222 15,586 17,468 18,228 15,340 14,936 Equals: Net surplus, or deficit ( —) 4 Amount............................................ —13,321 -14,202 -16,197 -16,151 -15,660 -17,641 -18,283 -15,474 -15,191 5 Percent of average required reserves. 72.6 79.4 91.7 92.3 93.8 102.3 106.9 89.2 89.8 Interbank federal funds transactions Gross transactions: 20,855 22,071 23,568 23,903 22,337 24,736 25,264 23,226 22,687 7 Sales.................................................. 7,927 7,755 7,483 7,681 6,751 7,268 7,036 7,887 7,751 8 Two-way transactions2....................... 6,370 5,671 5,908 6,202 5,799 5,952 5,564 5,727 5,702 Net transactions: 9 Purchases of net buying banks....... 14,485 16,400 17,660 17,701 16,538 18,784 19,700 17,499 16,985 10 Sales of net selling banks............... 1,558 2,084 1,575 1,480 952 1,316 1,472 2,159 2,050 Related transactions with U.S. government securities dealers 4,697 3,249 3,074 4,491 4,654 3,899 3,723 3,557 3,242 12 Borrowing from dealers4.................... 1,336 1,277 1,372 1,117 1,516 1,077 1,486 2,097 1,284 3,361 1,971 1,702 3,374 3,138 2,822 2,237 1,461 1,958 8 banksi in New York City Basic reserve position -21 92 -15 52 -5 -12 3 40 -12 Less: 15 Borrowings at Federal Reserve Banks........................................ 272 70 36 33 55 16 Net interbank federal funds 2,050 2,674 3,093 2,654 2,227 4,002 4,566 2,768 3,056 Equals: Net surplus, or deficit ( —) 17 Amount............................................ -2,344 -2,582 -3,108 -2,602 -2,232 -4,084 -4,600 -2,760 3,123 18 Percent of average required reserves. 35.4 39.2 48.5 40.8 37.9 65.7 73.9 43.8 51.9 Interbank federal funds transactions Gross transactions: 3,674 4,305 4,433 4,397 3,616 5,064 5,574 4,613 4,456 1,623 1,631 1,340 1,744 1,389 1,062 1,008 1,845 1,399 1,449 1,141 1,340 1,260 1,262 1,062 1,008 1,295 1,399 Net transactions: 22 Purchases of net buying banks....... 2,225 3,164 3,093 3,138 2,354 4,002 4,566 3,317 3,056 23 Sales of net selling banks............... 175 490 485 128 549 Related transactions with U.S. government securities dealers 24 Loans to dealers3................................. 2,987 1,843 1,616 2,638 2,855 2,14b 2,126 1,806 1,415 377 425 525 400 444 516 561 801 677 2,610 1,419 1,091 2,238 2,411 1,631 1,566 1,005 738 38 banks outside New York City Basic reserve position 67 58 19 52 6 26 21 -39 -170 Less: 28 Borrowings at Federal Reserve 166 36 116 33 75 116 42 102 18 29 Net interbank federal funds 10,878 11,642 12,991 13,568 13,359 13,466 13,663 12,572 11,880 Equals: Net surplus, or deficit ( —) 30 Amount............................................ -10,977 -11,620 -13,088 -13,549 -13,427 -13,557 -13,684 -12,714 -12,068 31 Percent of average required reserves. 93.6 103.0 116.2 121.7 124.2 122.9 125.9 115.2 110.8 Interbank federal funds transactions Gross transactions: 17,182 17,766 19,135 19,505 18,721 19,672 19,690 18,614 18,231 6,304 6,124 6,143 5,937 5,362 6,206 6,028 6,042 6,352 34 Two-way transactions2....................... 4,921 4,529 4,568 4,942 4,537 4,890 4,556 4,432 4,302 Net transactions: 35 Purchases of net buying banks....... 12,260 13,236 14,567 14,563 14,184 14,782 15,134 14,182 13,929 36 Sales of net selling banks................ 1,383 1,594 1,575 996 825 1,316 1,472 1,610 2,050 Related transactions with U.S. government securities dealers 37 Loans to dealers3................................ 1,710 1,406 1,458 1,853 1,799 1,753 1,597 1,751 1,826 959 853 847 716 1,072 561 925 1,296 607 751 553 611 1,137 727 1,192 671 456 1,219 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Funds Al 1.13 Continued 1979, week ending Wednesday Type Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 5 banks in City of Chicago Basic reserve position 40 Excess reserves1................................. 17 5 -1 5 7 5 -8 2 -3 Less: 41 Borrowings at Federal Reserve Banks...................................... 80 43 69 42 Net interbank federal funds transactions............................. 4,597 5,079 6,003 5,995 5,258 5,617 5,629 5,262 4,947 Equals: Net surplus, or deficit ( —). 43 Amount.......................................... -4,661 -5,074 -6,004 -5,990 -5,251 -5,655 -5,636 -5,329 -4,950 44 Percent of average required reserves 255.1 289.5 345 A 350.3 324.6 335.9 332.7 310.3 297.2 Interbank federal funds transactions Gross transactions: 45 Purchases........................................ 6,123 6,626 7,437 7,370 6,756 7,096 6,921 6,776 6,349 46 Sales................................................ 1,525 1,548 1,435 1,375 1,498 1,478 1,293 1,514 1,402 47 Two-way transactions2..................... 1,505 1,498 1,378 1,325 1,470 1,478 1,281 1,496 1,356 Net transactions: 48 Purchases of net buying banks....... 4,618 5,128 6,060 6,044 5,286 5,617 5,640 5,280 4,994 49 Sales of net selling banks.............. 20 49 57 50 28 11 18 47 Related transactions with U.S. government securities dealers 50 Loans to dealers3............................... 209 272 147 452 364 553 368 474 586 51 Borrowing from dealers4.................. 125 160 64 7 81 8 135 226 54 52 Net loans.............................................. 84 112 83 445 283 545 233 247 532 33 other banks Basic reserve position 53 Excess reserves1.................................. 51 53 20 48 21 28 -41 -167 Less: 54 Borrowings at Federal Reserve Banks........................................ 86 36 116 33 75 74 42 34 18 55 Net interbank federal funds transactions.............................. 6,280 6,563 6,989 7,573 ,101 7,849 ,034 7,310 6,933 Equals: Net surplus, or deficit ( —) 56 Amount............................................ -6,316 -6,546 -7,085 -7,559 ,177 -7,902 8,048 -7,385 -7,118 57 Percent of average required reserves, 63.8 68.7 74.4 80.2 88.9 84.6 87.7 79.3 77.2 Interbank federal funds transactions Gross transactions: 5 5 8 9 P S u al r e c s h .. a .. s . e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4 1 , , 7 0 7 5 9 9 1 4 1 , , 5 1 7 3 6 9 1 4 1 , , 7 6 0 9 9 7 1 4 2 , , 5 1 6 3 3 6 1 3 1 , , 8 96 6 5 4 1 A 2, , 5 1 7 2 6 1 1 4 2 , , 7 7 3 6 5 9 1 4 1 , , 5 8 2 3 8 8 1 4 1 , , 9 8 4 8 9 2 60 Two-way transactions2....................... 3,417 3,031 3,191 3,617 3,067 3,411 3,275 2,936 2,947 Net transactions: 61 Purchases of net buying banks....... 7,642 8,108 8,507 8,519 8,898 9,165 9,495 8,902 8,935 62 Sales of net selling banks............... 1,362 1,545 1,518 946 797 1,316 1,461 1,591 2,003 Related transactions with U.S. 63 Loan g s o v to er d nm ea e l n e t r s s 3 e . c .. u .. r . i . t .. i . e . s .. . d .. e .. a .. l . e .. r . s ........ 1,501 1,133 1,311 1,401 1,435 1,201 1,229 1,278 1,241 64 B N o e r t r l o o w a i n n s g .. . f . r .. o .. m ... . d ... e . a .. l . e .. r .. s . 4 ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6 8 6 3 7 4 4 6 4 9 1 2 7 5 8 2 3 8 7 69 1 1 0 4 9 4 9 4 2 6 5 4 5 7 3 4 7 3 9 8 0 1,0 2 6 0 9 9 6 5 8 5 7 3 1 Based on reserve balances, including adjustments to include waivers 4 Federal funds borrowed, net funds acquired from each dealer by of penalities 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. government 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, see 3 Federal funds loaned, net funds supplied to each dealer by clearing August 1964 Bulletin, pp. 944-53. Back data for 46 banks appear in banks, repurchase agreements (purchases from dealers subject to resale), the board’s Annual Statistical Digest, 1971-1975, table 3. or other lending arrangements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics □ April 1979 1.14 FEDERAL RESERVE BANK INTEREST RATES Per cent per annum Current and previous levels Loans to member banks Loans to all others Under s<5c. 10(b)2 under sec. 13, last par.* Federal Reserve Under secs. 13 and 13ai Bank Regular rate Special rate 3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 3/31/79 date rate 3/31/79 date rate 3/31/79 date rate 3/31/79 date rate Boston.................. 9% 11/2/78 8 Vi 10 11/2/78 9 10% 11/2/78 9% 12% 11/2/78 11% New York............ 9% 11/1/78 8% 10 11/1/78 9 10% 11/1/78 9% 12% 11/1/78 11% Philadelphia......... 9 % 11/2/78 8% 10 11/2/78 9 10% 11/2/78 9% 12% 11/2/78 11% Cleveland............. 9% 11/2/78 8% 10 11/2/78 9 10% 11/2/78 9% 12% 11/2/78 11% Richmond............ 9 Vi 11/2/78 8 Vi 10 11/2/78 9 10% 11/2/78 9% 12% 11/2/78 11% Atlanta................. 9% 11/3/78 8% 10 11/3/78 9 10% 11/3/78 9% 12% 11/3/78 11% Chicago................ 9% 11/2/78 8% 10 11/2/78 9 10% 11/2/78 9% 12% 11/2/78 11% St. Louis............... 9% 11/2/78 8% 10 11/2/78 9 10% 11/2/78 9% 12% 11/2/78 11% Minneapolis......... 9% 11/1/78 8% 10 11/1/78 9 10% 11/1/78 9% 12% 11/1/78 11% Kansas City.......... 9% 11/2/78 8% 10 11/2/78 9 10% 11/2/78 9% 12% 11/2/78 11% Dallas................... 9Vi 11/2/78 8% 10 11/2/78 9 10% 11/2/78 9% 12% 11/2/78 11% San Francisco.... 9% 11/2/78 8% 10 11/2/78 9 10% 11/2/78 9% 12% 11/2/78 11% Range of rates in recent years 5 Range F.R. Range F.R. Range F.R. Effective date (or level)— Bank Effective date (or level)— Bank Effective date (or level)— Bank All F.R. of All F.R. of All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1970....... 5% 5% 1973—May 4.................. 5V4 1976—Jan. 19.................. 5%-6 5% 1971 _jan. 8................... 514-5% 514 1 1 8 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5V4t s* Nov. 2 23 2 . . . . . . . . . . . .. .. . . . . . . . . .. .. . . . ... 51 5 4 % -5% 5 5 % % 15................... 514 514 June 11.................. 6-6 Vi !g 26.................. 514 5% 19................... 5-514 514 15.................. 6% 22................... 5-514 5 July 2................. 7 7 1977—Aug. 30................. 514-534 5% 29................... 5 5 Aug. 14.................. 7-7% 31.................. 514-5% 5% Feb. 13................... 4%-5 5 23................. 7% % Sept. 2................. 5% 5% 19................... 434 434 Oct. 26................. 6 6 July 16................... 434-5 5 1974—Apr. 25................. 7%-8 8 23.................... 5 5 30................. 8 8 1978—Jan. 9................. 6-6% 6% Nov 11................... 434-5 5 Dec. 9................. 7%-8 20................. 6% 6% 19................... 434 434 16................. m ?8 May 11................. 6%-7 7 Dec. 13................... 4%-434 434 12................. 7 7 17.................... 4%-434 4% 1975—Jan. 6................. 714-734 July 3................. 7-7% 7% 24.................... 4% 4% 10................. 7K-7K ?8 10................. 714 7% 1973—Jan. 15.................. 5 5 Feb. 2 5 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6% IV -7 a % 7 6% % A Se u p g t . . 2 2 1 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 8 34 7 8 34 Feb. 26.................. 5-5% 5% 7................. 6% 6% Oct. 16................. 8-8% 8% Mar. 2.................. 5% 5% Mar. 10................. 61^-63,4 614 20................. 8% 8% Apr. 23.................. 5%-534 5% May 14................. 6 6 % -6% 6614 Nov. 3 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8% 9% -9% 9 9 % % 23................. 6 6 In effect Mar. 31, 1979. . . 9% 9% 1 Discounts of eligible paper and advances secured by such paper or by 4 Advances to individuals, partnerships, or corporations other than U.S. government obligations or any other obligations eligible for Federal member banks secured by direct obligations of, or obligations fully Reserve Bank purchase. guaranteed as to principal and interest by, the U.S. government or any 2 Advances secured to the satisfaction of the Federal Reserve Bank. agency thereof. Advances secured by mortgages on 1- to 4-family residential property 5 Rates under secs. 13 and 13a (as described above). For description are made at 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, 1972-76, and 1973-77. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.15 MEMBER BANK RESERVE REQUIREMENTS1 Percent of deposits Requirements in effect Previous requirements March 31, 1979 Type of deposit, and deposit interval in millions of dollars Percent Effective date Percent Effective date Net demand2 7 12/30/76 m 2/13/75 9% 12/30/76 10 2/13/75 10-100............................................................................................. 1134 12/30/76 12 2/13/75 100-400........................................................................................... W a 12/30/76 13 2/13/75 Over 400......................................................................................... 16 Va 12/30/76 16Vi 2/13/75 Time and savings2-3-4 3 3/16/67 m 3/2/67 Times.............................................................................................. 0-5 by maturity 30-179 days............................................................................ 3 3/16/67 3 % 3/2/67 180 days to 4 years................................................................. 2% 1/8/76 3 3/16/67 4 years or more...................................................................... 1 10/30/75 3 3/16/67 Over 5, by maturity 30-179 days............................................................................. 6 12/12/74 5 10/1/70 180 days to 4 years................................................................ 2% 1/8/76 3 12/12/74 4 years or more...................................................................... 1 10/30/75 3 12/12/74 Legal limits Minimum Maximum Net demand Reserve city banks................ 10 22 Other banks.......................... 7 14 Time........................................... 3 10 Borrowings from foreign banks 0 22 1 For changes in reserve requirements beginning 1963, see board’s on net balances due from domestic banks to their foreign branches and Annual Statistical Digest, 1971-1975 and for prior changes, see board’s on deposits that foreign branches lend to U.S. residents were reduced to Annual Report for 1976, table 13. zero from 4 percent and 1 percent, respectively. The Regulation D reserve 2 (a) Requirement schedules are graduated, and each deposit interval requirement on borrowings from unrelated banks abroad was also reduced applies to that part of the deposits of each bank. Demand deposits to zero from 4 percent. subject to reserve requirements are gross demand deposits minus cash (d) Effective with the reserve computation period beginning Nov. 16, items in process of collection and demand balances due from domestic 1978, domestic deposits of Edge Corporations are subject to the same banks. reserve requirements as deposits of member banks. (b) The Federal Reserve Act specifies different ranges of requirements 3 Negotiable order of withdrawal (NOW) accounts and time deposits for reserve city banks and for other banks. Reserve cities are designated such as Christmas and vacation club accounts are subject to the same under a criterion adopted effective Nov. 9, 1972, by which a bank having requirements as savings deposits. net demand deposits of more than $400 million is considered to have the 4 The average reserve requirement on savings and other time deposits character of business of a reserve city bank. The presence of the head must be at least 3 percent, the minimum specified by law. office of such a bank constitutes designation of that place as a reserve 5 Effective November 2, 1978, a supplementary reserve requirement of city. Cities in which there are Federal Reserve Banks or branches are also 2 percent was imposed on time deposits of $100,000 or more, obligations reserve cities. Any banks having net demand deposits of $400 million or of affiliates, and ineligible acceptances. less are considered to have the character of business of banks outside of reserve cities and are permitted to maintain reserves at ratios set for banks Note. Required reserves must be held in the form of deposits with not in reserve cities. For details, see the board’s Regulation D. Federal Reserve Banks or vault cash. (c) Effective August 24, 1978, the Regulation M reserve requirements Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics □ April 1979 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions Percent per annum Commercial banks Savings and loan associations and mutual savings banks Type and maturity of deposit In effect Mar. 31, 1979 Previous maximum In effect Mar. 31, 1979 Previous maximum Percent Effective Percent Effective Percent Effective Percent Effective date date date date 1 Savings...................................................... 5 7/1/73 4% 1/21/70 5% (7) 5 (8) 2 Negotiable order of withdrawal accounts1....................................... 5 1/1/74 (10) 5 1/1/74 (10) 3 Money market time deposits of less than $100,0002............................... (9) (9) (9) (9) (9) (9) (9) (9) Time (multiple- and single-maturity unless otherwise indicated)3 30-89 days 4 5 M Sin u g lt l i e p -m le- a m tu a r t i u ty ri .. t . y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . } * 7/1/73 J I 4 5 V4 9 1 / / 2 2 6 1 / / 6 7 6 0 } (10) (10) 90 days to 1 year 6 7 S M in u g lt l i e p -m le- a m tu a r t i u ty r . i . t . y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . } 5% 7/1/73 ’ { 7 9 / / 2 2 0 6 / / 6 6 6 6 } 45*/4 (7) 5% 1/21/70 9 8 2 1 t t o o 2 2 % ye y a e r a s4 r . s . 4 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . }■ 6 7/1/73 \ J 5 5 % % 1 1 / /2 21 1/ /7 70 0 } 6% (7) J 53/4 1 1 / / 2 2 1 1 / / 7 7 0 0 10 2% to 4 years4..................................... 6V2 7/1/73 5V4 1/21/70 ey4 (7) 1 I 1/21/70 11 4 to 6 years5........................................ 71/4 11/1/73 (“) 7'h 11/1/73 12 6 to 8 years5........................................ 7% 12/23/74 7V4 11/1/73 73/4 12/23/74 m 11/1/73 13 8 years or more5................................. 73/4 6/1/78 (i°) 8 6/1/78 (10) 14 Issued to governmental units (all maturities).................................... 8 6/1/78 7V4 12/23/74 8 6/1/78 7% 12/23/74 15 Individual retirement accounts and Keogh (H.R. 10) plans 6.............. 8 6/1/78 7Va 7/6/77 8 6/1/78 7Va 7/6/77 1 For authorized states only. Federally insured commercial banks, bill rate is between 8% and 9 percent. Also effective March 15, 1979, savings and loan associations, cooperative banks, and mutual savings interest compounding was prohibited on money market time deposits banks in Massachusetts and New Hampshire were first permitted to offer at all offering institutions. The most recent rates and effective dates are negotiable order of withdrawal (NOW) accounts on Jan. 1, 1974. as follows: Authorization to issue NOW accounts was extended to similar institutions throughout New England on Feb. 27, 1976, and in New York State on Nov. 10, 1978. Mar. 1 Mar. 8 Mar. 15 Mar. 22 Mar. 29 2 Must have a maturity of exactly 26 weeks and a minimum denomina­ tion of $10,000, and must be nonnegotiable. Fe 3 d e F r o a r l e R xc e e s p e t r i v o e n s B w ul it l h e t r i e n s p f e o c r t O to c t c o e b r e t r a in 19 6 fo 2 r e (p ig . n 1 2 ti 7 m 9) e , d A e u p g o u s s i t t s 1 s 9 e 6 e 5 t ( h p e . T Ba h n ri k f s ts .. . . . . . . . . . . . . . . . 9 9 . . 4 7 9 4 8 8 9 9 . . 4 6 1 6 5 5 } 9.457 9.483 9.437 1094), and February 1968 (p. 167). 4 A minimum of $1,000 is required for savings and loan associations, except in areas where mutual savings banks permit lower minimum de­ 10 No separate account category. nominations. This restriction was removed for deposits maturing in less 11 Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for than 1 year, effective Nov. 1, 1973. certificates maturing in 4 years or more with minimum denominations 5 $1,000 minimum except for deposits representing funds contributed of $1,000; however, the amount of such certificates that an institution to an Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan es­ could issue was limited to 5 percent of its total time and savings deposits. tablished pursuant to the Internal Revenue Code. The $1,000 minimum Sales in excess of that amount, as well as certificates of less than $1,000, requirement was removed for such accounts in December 1975 and No­ were limited to the 6 Vi percent ceiling on time deposits maturing in 2Vi vember 1976, respectively. years or more. 6 3-year minimum maturity. Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing 7 July 1, 1973, for mutual savings banks; July 6, 1973, for savings and in 4 years or more with minimum denominations of $ 1,000. There is no loan associations. limitation on the amount of these certificates that banks can issue. 8 Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and loan associations. Note. Maximum rates that can be paid by federally insured commer­ 9 Commercial banks, savings and loan associations, and mutual savings cial banks, mutual savings banks, and savings and loan associations are banks were authorized to offer money market time deposits effective established by the Board of Governors of the Federal Reserve System, June 1, 1978. The ceiling rate for commercial banks is the discount rate the Board of Directors of the Federal Deposit Insurance Corporation, on most recently issued 6-month U.S. Treasury bills. Until March 15, and the Federal Home Loan Bank Board under the provisions of 12 1979, the ceiling rate for savings and loan associations and mutual savings CFR 217, 329, and 526, respectively. The maximum rates on time de­ banks was % percentage point higher than the rate for commercial banks. posits in denominations of $100,000 or more were suspended in mid- Beginning March 15, 1979, the % percentage point interest differential 1973. For information regarding previous interest rate ceilings on all is removed when the 6-month Treasury bill rate is 9 percent or more. types of accounts, see earlier issues of the Federal Reserve Bulletin, The full differential is in effect when the 6-month bill rate is 8% percent the Federal Home Loan Bank Board Journal, and the Annual Report or less. Thrift institutions may pay a maximum 9 percent when the 6-month of the Federal Deposit Insurance Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A ll 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1978 1979 1976 1977 1978 Type of transaction Aug. Sept. Oct. Nov. Dec. Jan. Feb. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched salepurchase transactions) Treasury bills: 1 Gross purchases........................................... 14,343 13,738 16,628 972 2,635 1,978 2,039 0 0 0 2 Gross sales.................................................... 8,462 7,241 13,725 689 0 2,148 3,587 2,751 3,758 228 3 Redemptions................................................. 25,017 2,136 2,033 0 0 0 603 0 500 400 Others within 1 year:1 4 Gross purchases........................................... 472 3,017 1,184 171 168 73 139 0 0 48 5 Gross sales.................................................... 0 0 0 0 0 0 0 0 0 0 6 Exchange, or maturity shift......................... 792 4,499 -5,170 -1,544 563 -385 -778 705 -673 -30 7 Redemptions................................................ 0 2,500 0 0 0 0 0 0 0 0 1 to 5 years: 8 Gross purchases........................................... 2 3,202 2,833 4,188 424 350 507 628 0 0 426 9 Gross sales.................................................... 177 0 0 0 0 0 0 0 0 0 10 Exchange, or maturity shift......................... -2,588 -6,649 -178 -490 -563 385 -657 -705 673 2,205 5 to 10 years: 11 Gross purchases........................................... 1,048 758 1,526 238 110 87 163 0 0 134 12 Gross sales.................................................... 0 0 0 0 0 0 0 0 0 0 13 Exchange, or maturity shift......................... 1,572 584 2,803 1,434 0 0 835 0 0 -2,975 Over 10 years: 14 Gross purchases........................................... 642 553 1,063 113 122 139 108 0 0 93 15 Gross sales.................................................... 0 0 0 0 0 0 0 0 0 0 16 Exchange, or maturity shift......................... 225 1,565 2,545 600 0 0 600 0 0 800 All maturities:1 17 Gross purchases........................................... 219,707 20,898 24,591 1,919 3,386 2,785 3,075 0 0 700 18 Gross sales.................................................... 8,639 7,241 13,725 689 0 2,148 3,587 2,751 3,758 228 19 Redemptions................................................ 2 5,017 4,636 2,033 0 0 0 603 0 500 400 Matched sale-purchase transactions 20 Gross sales........................................................ 196,078 425,214 511,126 29,162 33,346 35,112 40,785 52,661 64,691 56,291 21 Gross purchases............................................... 196,579 423,841 510,854 29,641 33,130 36,106 40,546 51,586 60,750 58,426 Repurchase agreements 22 Gross purchases............................................... 232,891 178,683 151,618 16,286 10,724 18,976 7,719 8,133 3,117 6,931 23 Gross sales........................................................ 230,355 180,535 152,436 15,140 10,353 20,565 8,383 7,049 4,201 6,931 24 Net change in U.S. government securities........ 9,087 5,798 7,743 2,854 3,540 43 -2,017 -2,743 -9,283 2,207 FEDERAL AGENCY OBLIGATIONS Outright transactions: 25 Gross purchases............................................... 891 1,433 301 0 0 0 0 0 0 0 26 Gross sales........................................................ 0 0 173 173 0 0 0 0 379 20 27 Redemptions.................................................... 169 223 235 13 28 12 39 3 10 * Repurchase agreements: 28 Gross purchases............................................... 10,520 13,811 40,567 3,080 3,877 6.675 2,544 4,307 713 1,152 29 Gross sales........................................................ 10,360 13,638 40,885 3,032 3,348 7,196 2,670 4,174 846 1,152 30 Net change in federal agency obligations......... 882 1,383 -426 -138 501 -533 -165 130 -522 -20 BANKERS ACCEPTANCES 31 Outright transactions, net................................... -545 -196 0 0 0 0 0 0 0 0 32 Repurchase agreements, net............................... 410 159 -366 28 419 -479 -236 587 -587 0 33 Net change in bankers acceptances.................... -135 -37 -366 28 419 -479 -236 587 -587 0 34 Total net change in System Open Market Account......................................................... 9,833 7,143 6,951 2,744 4,460 -969 -2,419 -2,026 -10,392 2,187 1 Both gross purchases and redemptions include special certificates amounting to $189 million. Acquisition of these notes is treated as a created when the Treasury borrows directly from the Federal Reserve, purchase; the run-off of bills, as a redemption. as follows (millions of dollars): 1975, 3,549; 1976, none; Sept. 1977, 2,500. Note. Sales, redemptions, and negative figures reduce holdings of 2 In 1975, the system obtained $421 million of 2-year Treasury notes the System Open Market Account; all other figures increase such holdings. in exchange for maturing bills. In 1976 there was a similar transaction Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Financial Statistics □ April 1979 1.18 FEDERAL RESERVE BANKS Condition and F.R. Note Statements Millions of dollars Wednesday End of month Account 1979 1979 Feb. 28 Mar. 7 Mar. 14 Mar. 21^ Mar. 28» Jan. Feb. Mar.p Consolidated condition statement ASSETS 1 Gold certificate account......................................... 11,544 11,544 11,532 11,481 11,481 11,592 11,544 11,479 2 Special Drawing Rights certificate account......... 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 3 344 352 368 369 380 316 344 395 Loans: 4 Member bank borrowings................................. 1,603 2,042 1,438 1,838 1,495 4,366 1,603 964 5 Other.................................................................... 0 0 0 0 0 0 0 0 Acceptances: 6 Bought outright.................................................. 0 0 0 0 0 0 0 0 7 Held under repurchase agreements................... 0 0 757 0 0 0 0 204 Federal agency obligations: 8 7,487 7,464 7,464 7,464 7,464 7,507 7,487 7,464 9 Held under repurchase agreements................... 0 0 890 0 0 0 0 368 U.S. government securities Bought outright: 10 Bills.................................................................. 35,467 28,539 35,784 29,123 36,686 33,959 35,467 38,641 11 Certificates—Special....................................... 0 0 0 0 0 0 0 2,600 12 Other......................................... 0 0 0 0 0 0 0 0 13 Notes................................................................ 54,662 54,662 54,662 54,662 54,662 54,855 54,662 54,662 14 13,357 13,357 13,357 13,357 13,357 12,465 13,357 13,357 15 Total i............................................................... 103,486 96,558 103,803 97,142 104,705 101,279 103,486 109,260 16 0 0 2,689 0 0 0 0 1,680 17 103,486 96,558 106,492 97,142 104,705 101,279 103,486 110,940 18 Total loans and securities....................................... 112,576 106,064 117,041 106,444 113,664 113,152 112,576 119,940 19 15,229 14,704 16,080 13,335 11,529 12,803 15,229 10.171 20 Bank premises........................................................ 395 395 395 397 396 395 395 396 Other assets: 21 Denominated in foreign currencies2................. 2,266 3,672 3,717 3,769 3,774 2,528 2,266 3,754 22 1,910 1,962 2,093 2,343 2,339 2,753 1,910 2,255 23 Total assets............................................................. 145,564 139,993 152,526 139,438 144,863 144,839 145,564 149,690 LIABILITIES 24 Federal Reserve notes.............................................. 99,999 100,631 100,958 100,687 100,896 99,354 99,999 100,654 Deposits: 25 Member bank reserves...................................... 29,723 25,245 36,088 24,723 29,063 29,931 29,723 31,615 26 U.S. Treasury—General account..................... 3,443 2,512 3,318 2,106 3,178 3,522 3,443 5,726 27 Foreign................................................................ 343 276 262 225 271 339 343 303 28 779 883 746 677 661 874 779 708 29 Total deposits.......................................................... 34,288 28,916 40,414 27,731 33,173 34,666 34,288 38,352 30 Deferred availability cash items........................... 6,598 6,324 6,672 6,716 6,019 6,225 6,598 5,934 31 Other liabilities and accrued dividends3.............. 1,859 1,774 1,947 1,601 1,902 1,685 1,859 1,795 32 142,744 137,645 149,991 136,735 141,990 141,930 142,744 146,735 CAPITAL ACCOUNTS 33 Capital paid in....................................................... 1,088 1,089 1,109 1,109 1,110 1,085 1,088 1,113 34 1,078 1,078 1,078 1,078 1,078 1,078 1,078 1,078 35 Other capital accounts......................................... 654 181 348 516 685 746 654 764 36 Total liabilities and capital accounts..................... 145,564 139,993 152,526 139,438 144,863 144,839 145,564 149,690 37 Memo: Marketable U.S. govt, securities held in custody for foreign and inti, account.......... 94,611 94,531 92,922 92,591 90,623 95,762 94,611 89,184 Federal Reserve note statement 38 113,160 108,866 113,269 113,627 114,098 113,618 113,160 114,135 Collateral held against notes outstanding: 39 Gold certificate account..................................... 11,544 11,544 11,532 11,481 11,481 11,592 11,544 11,479 40 Special Drawing Rights certificate account.... 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 41 1,424 1,838 1,193 1,549 1,225 2,726 1,424 845 42 U.S. government securities............................... 98,892 94,184 99,244 99,297 100,092 98,000 98,892 100,511 43 113,160 108,866 113,269 113,627 114,098 113,618 113,160 114,135 1 Includes securities loaned—fully guaranteed by U.S. govt, securities 2 Beginning December 29, 1978, such assets are revalued monthly pledged with Federal Reserve Banks—and excludes (if any) securities sold at market exchange rates. and scheduled to be bought back under matched sale-purchase trans­ 3 Includes exchange-translation account reflecting, beginning December actions. 29, 1978, the monthly revaluation at market exchange rates of foreignexchange commitments. 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 1979 1979 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Jan. 31 Feb. 28 Mar. 31 1 1,604 2,041 1,436 1,838 1,495 4,364 1,604 964 2 Within 15 days..................................................... 1,577 2,004 1,374 1,763 1,463 4,334 1,577 905 3 27 37 62 75 32 30 27 59 4 0 0 0 0 0 0 0 0 0 0 757 0 0 0 0 204 6 Within 15 days..................................................... 0 0 757 0 0 0 0 204 7 0 0 0 0 0 0 0 0 8 0 0 0 0 0 0 0 0 103,486 96,558 106,492 97,142 104,705 101,279 103,486 110,940 10 3,084 2,681 5,668 4,550 4,998 3,961 3,084 7,663 11 16,546 9,563 16,660 8,503 16,550 14,369 16,546 20,031 12 25,864 26,663 26,513 26,437 25,506 25,980 25,864 25,595 13 34,549 34,208 34,208 34,209 34,208 31,577 34,549 34,208 14 11,875 11,875 11,875 11,875 11,875 14,717 11,875 11,875 15 11,568 11,568 11,568 11,568 11,568 10,675 11,568 11,568 7,487 7,464 8,354 7,464 7,464 7,507 7,487 7,832 17 Within 15 days i................................................... 114 40 890 25 25 16 114 393 18 16 days to 90 days............................................... 344 395 578 553 553 507 344 553 19 91 days to 1 year.................................................. 1,098 1,098 994 994 994 1,188 1,098 994 20 3,553 3,553 3,509 3,509 3,509 3,475 3,553 3,509 21 Over 5 years to 10 years...................................... 1,568 1,568 1,573 1,573 1,573 1,511 1,568 1,573 22 Over 10 years........................................................ 810 810 810 810 810 810 810 810 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 Bank group, or type 1975 1976 1977 of customer Aug. Sept. Oct. Nov. Dec. Debits to demand deposits 2 (seasonally adjusted) 1 All commercial banks............... 25,028.5 29,180.4 34,322.8 42,819.1 41.896.6 42,942.5 42.941.5 42,307.5 2 Major New York City banks.. 9,670.7 11.467.2 13,860.6 16.435.0 15,500.0 15,437.8 15.673.6 15.100.2 3 Other banks............................... 15,357.8 17.713.2 20,462.2 26.384.1 26.396.6 27,504.7 27,267.9 27.207.3 Debits to savings deposits 3 (not seasonally adjusted) 4 All customers............................. 174.0 434.6 424.4 467.6 446.0 438.0 21.7 58.5 62.0 67.2 66.8 61.4 6 Others......................................... 152.3 376.1 362.4 400.4 379.1 376.6 Demand deposit turnover 2 (seasonally adjusted) 105.3 116.8 129.2 146.5 141.9 144.1 145.1 141.6 8 Major New York City banks.. 356.9 411.6 503.0 577.6 549.6 530.1 559.8 535.9 9 Other banks............................... 72.9 79.8 85.9 100.0 98.8 102.3 101.8 100.5 Savings deposit turnover 3 (not seasonally adjusted) 10 All customers............................. 1.6 2.0 1.9 2.1 2.0 2.0 11 Business 1................................... 4.1 5.2 5.4 5.8 5.8 5.4 12 Others......................................... 1.5 1.8 1.7 1.9 1.8 1.8 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 SMSAs, 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.D. 20551. Debits and turnover data and of states and political subdivisions. for savings deposits are not available prior to July 1977. 3 Excludes negotiable order of withdrawal (NOW) accounts and special club accounts, such as Christmas and vacation clubs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Financial Statistics □ April 1979 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1978 1979 1975 1976 1977 1978 Dec. Dec. Dec. Dec. Item Sept. Oct. Nov. Dec. Jan. Feb. Seasonally adjusted MEASURES i 1 M-1...................................................... 295.4 313.8 338.7 361.5 361.1 361.6 361.0 361.5 359.9 358.8 2 M-1 .................................................. 456.8 517.2 560.6 r586.4 589.4 r589.7 r587.2 r586.4 r582.3 578.9 3 M-2...................................................... 664.8 740.6 809.4 876.3 866.2 870.9 874.3 876.3 875.4 877.0 4 M-3...................................................... 1,092.4 1,235.6 1,374.3 1,500.6 1,474.7 1,485.5 1,493.8 1,500.6 rl,504.1 1,510.0 745.8 803.0 883.51 M-4.9..7..2....9...........9..5..4....8............9..5..9....6.........969.7 972.9 975.9 979.2 6 M-5...................................................... 1,173.5 1,298.0 1,448.0 1,597.3 1,563.2 1,574.1 1,589.2 1,597.3 rl,604.6 1,612.1 COMPONENTS 73.8 80.8 88.6 97.5 95.2 95.8 96.6 97.5 98.2 98.9 Commercial bank deposits: 8 Demand.............................................. 221.7 233.0 250.1 264.1 265.9 265.8 264.4 264.1 261.7 259.9 450.3 489.2 544.4 611.4 593.7 597.9 608.8 611.4 616.0 620.4 10 Savings............................................ 160.7 202.1 219.7 222.0 225.5 225.2 223.4 222.0 219.6 217.4 11 Negotiable CDs2............................. 81.0 62.4 73.7 96.6 88.5 88.6 95.4 96.6 100.5 102.1 12 Other time....................................... 208.6 224.7 251.0 292.8 279.6 284.1 289.9 292.8 295.9 300.9 13 Nonbank thrift institutions3............. 427.7 495.0 564.9 624.3 608.5 614.6 619.5 624.3 r628.7 632.9 Not seasonally adjusted MEASURES i 14 M-1...................................................... 303.9 322.6 348.2 371.6 359.0 361.4 363.0 371.6 365.7 352.0 15 M-1 + .................................................. 463.6 524.2 568.0 r594.4 r585.3 r587.8 r-587.4 r594.4 587.3 571.5 16 M-2...................................................... 670.0 745.8 814.9 882.0 861.7 868.2 871.6 882.0 880.1 871.4 17 M-3...................................................... 1,095.0 1,238.3 1,377.2 1,503.3 1,469.2 1,481.6 1,487.8 1,503.3 rl,507.2 1,502.4 753.5 810.0 890.188 M-49.8..1....6...........9...5..2....0...........9..5..9....0...........968.0 981.6 981.2 970.9 19 M-5...................................................... 1,178.4 1,302.6 1,453.2 rl,602.0 1,559.5 1,572.4 1,584.2 1,602.9 rl,608.3 1,602.0 COMPONENTS 20 Currency.............................................. 75.1 82.1 90.1 99.1 94.9 95.6 97.2 99.1 97.4 97.6 Commercial bank deposits: 21 Demand................................................ 228.8 240.5 258.1 272.5 264.1 265.8 265.7 272.5 268.3 254.4 Member........................................... 162.8 169.4 177.5 182.9 178.3 179.3 178.3 182.9 179.2 169.5 Domestic nonmember ................. 62.6 67.5 76.2 85.6 81.9 82.7 83.7 85.6 84.9 81.0 24 Time and savings................................. 449.6 487.4 542.6 609.9 593.1 597.6 605.0 609.9 615.5 618.9 25 Savings............................................ 159.1 200.2 111 .1 219.9 223.6 223.5 221.5 219.9 218.8 216.7 26 Negotiable CDs2............................. 83.5 64.3 75.9 99.5 90.3 90.8 96.4 99.5 101.1 99.6 27 Other time....................................... 207.1 222.9 249.0 290.5 219.2 283.3 287.1 290.5 295.6 302.6 28 Other checkable deposits4.................. 0.7 1.4 2.1 r2.9 2.8 r2.8 r2.9 r2.9 r2.8 2.8 29 Nonbank thrift institutions3.............. 424.9 492.5 562.3 621.3 607.5 613.4 616.2 621.3 r621.1 631.1 30 U.S. goverment deposits (all com­ mercial banks)............................. 4.1 4.4 5.1 10.2 6.2 4.3 8.0 10.2 12.0 8.3 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-1: Averages of daily figures for (1) demand deposits at commercial M-4: M-2 plus large negotiable CDs. banks other than domestic interbank and U.S. government, less cash items M-5: M-3 plus large negotiable CDs. in process of collection and Federal Reserve float; (2) foreign demand 2 Negotiable time CDs issued in denominations of $100,000 or more balances at Federal Reserve Banks; and (3) currency outside the Treasury, by large weekly reporting commercial banks. Federal Reserve Banks, and vaults of commercial banks. 3 Average of the beginning- and end-of-month figures for deposits of M-1 + : M-1 plus savings deposits at commercial banks, NOW accounts mutual savings banks, for savings capital at savings and loan associations, at banks and thrift institutions, credit union share draft accounts, and and for credit union shares. demand deposits at mutual savings banks. 4 Includes NOW accounts at thrift institutions, credit union share M2-: M-1 plus savings deposits, time deposits open account, and time draft accounts, and demand deposits at mutual savings banks. certificates of deposit (CDs) other than negotiable CDs of $100,000 or more at large weekly reporting banks. Note. Latest monthly and weekly figures are available from the board’s M-3: M-2 plus the average of the beginning- and end-of-month deposits 508 (H.6) release. Back data are available from the Banking Section, Division of Research and Statistics. 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 re­ the 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 and “Other” securities and $600 million in “Total loans and investments.” Dec. 31; data are partly or wholly estimated except when June 30 and As of Oct. 31, 1974, “Total loans and investments” of all commercial 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 1978 1979 Item 1975 1976 1977 Dec. Dec. Dec. July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Seasonally adjusted 1Reserves1.................................................................... 34.67 34.89 36.10 38.11 37.93 38.21 38.38 39.75 41.27 41.48 40.75 2 Nonborrowed.....................:.................................. 34.54 34.84 35.53 36.80 36.79 37.15 37.10 39.05 40.40 40.48 39.78 3 Required................................................................. 34.40 34.61 35.91 37.92 37.77 38.02 38.22 39.53 41.04 '41.26 40.54 4 Monetary base........................................................ 106.7 118.4 127.8 134.7 135.3 136.8 137.8 139.9 142.4 143.4 143.3 5 Deposits subject to reserve requirements2................. 504.2 528.6 568.6 600.5 602.7 607.0 608.9 616.9 616.7 621.1 619.7 6 Time and savings.................................................... 336.8 354.1 386.7 410.8 413.0 416.8 418.3 427.5 429.4 433.5 436.1 Demand 7 Private..................................................................... 164.5 171.5 178.5 186.1 186.5 186.2 187.2 187.0 185.1 185.6 181.9 8 U.S. government.................................................... 2.9 3.0 3.5 3.6 3.3 4.0 3.5 2.3 2.3 1.9 1.8 Not seasonally adjusted 9 Monetary base........................................................ 108.3 120.3 129.8 135.7 135.2 136.2 137.5 140.5 144.6 144.4 141.9 10 Deposits subject to reserve requirements2................. 510.9 534.8 575.3 600.6 599.2 605.9 608.4 615.1 624.0 627.1 614.3 11 Time and savings.................................................... 337.2 353.6 386.4 411.1 412.8 416.6 418.5 425.2 429.6 433.8 434.2 Demand 12 Private..................................................................... 170.7 177.9 185.1 186.4 183.9 184.7 186.9 188.0 191.9 191.5 178.2 13 U.S. government.................................................... 3.1 3.3 3.8 3.2 2.5 4.6 3.0 2.0 2.5 1.9 1.8 1 Series reflects actual reserve requirement percentages with no adjust­ 2 Includes total time and savings deposits and net demand deposits as ment to eliminate the effect of changes in Regulations D and M. There defined by Regulation D. Private demand deposits include all demand are breaks in series because of changes in reserve requirements effective deposits except those due to the U.S. govt., less cash items in process of Dec. 12, 1974; Feb. 13, May 22, and Oct. 30, 1975; Jan. 8 and Dec. 30, collection and demand balances due from domestic commercial banks. 1976. 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 Category Dec. 313 Dec. 31 Dec. 31 Dec. 31 July 26* Aug. 30* Sept. 27? Oct. 25v Nov. 29^ Dec. 31* Seasonally adjusted 1 Loans and investments1...................... 691.1 721.8 785.1 870.6 940.7 944.6 952.4 960.9 966.5 967.3 2 Including loans sold outright2.... 695.9 726.2 788.9 875.5 945.3 949.3 957.0 964.8 970.2 971.1 Loans: 3 Total................................................ 500.2 496.9 538.9 617.0 675.1 680.2 687.3 696.8 706.8 709.0 4 Including loans sold outright2... 505.0 501.3 542.7 621.9 679.7 684.9 691.9 700.7 710.5 712.8 5 Commercial and industrial............ 183.5 176.2 4179.7 5201.4 220.8 222.8 224.6 227.0 228.9 228.9 6 Including loans sold outright2... 186.2 178.7 4182.1 5204.2 223.1 225.2 226.9 228.9 230.8 230.7 Investments: 7 U.S. Treasury................................. 51.1 80.1 98.0 95.6 100.6 97.9 97.2 95.2 90.3 88.4 8 Other................................................ 139.8 144.8 148.2 158.0 165.0 166.5 167.9 168.9 169.4 169.9 Not seasonally adjusted 9 Loans and investments1...................... 705.6 737.0 801.6 888.9 936.6 942.0 951.4 958.4 969.3 987.6 10 Including loans sold outright2........ 710.4 741.4 805.4 893.8 941.2 946.7 956.1 962.3 973.0 991.4 Loans: 11 Total1.............................................. 510.7 507.4 550.2 629.9 675.6 681.0 688.6 696.6 707.2 723.9 12 Including loans sold outright2... 515.5 511.8 554.0 634.8 680.2 685.7 693.3 700.5 710.9 727.7 13 Commercial and industrial............ 186.8 179.3 4182.9 5205.0 220.9 221.7 223.9 226.5 228.9 233.0 14 Including loans sold outright2... 189.5 181.8 4185.3 5207.8 232.2 224.1 226.2 228.4 230.8 234.8 Investments: 15 U.S. Treasury.................................. 54.5 84.1 102.5 100.2 96.1 94.8 95.0 93.5 92.6 93.0 16 Other................................................ 140.5 145.5 148.9 158.8 164.9 166.2 167.7 168.3 169.5 170.7 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics □ April 1979 1.24 COMMERCIAL BANK ASSETS AND LIABILITIES Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1977 19783 Account Dec. Mar. Apr. May June JulyP Aug.P Sept.P Oct.p Nov.p Dec.P All commercial 1 Loans and investments............... 939.1 939.7 953.0 974.4 985.0 980.6 985.5 996.4 1,003.0 1,016.2 1,034.7 2 Loans, gross........................... 680.1 680.4 688.7 712.4 722.1 719.6 724.5 733.6 741.2 754.1 770.9 Investments: 3 U.S. Treasury securities.. 100.2 99.0 100.2 97.3 97.9 96.1 94.8 95.0 93.5 92.6 92.6 4 Other................................... 158.8 160.3 164.1 164.6 165.1 164.9 166.2 167.7 168.3 169.5 171.2 5 Cash assets................................. 168.7 130.5 133.1 161.0 166.8 130.2 137.4 141.8 146.5 149.2 170.1 6 Currency and coin................. 13.9 14.4 14.3 14.5 12.0 14.8 15.2 15.2 15.1 16.7 17.2 7 Reserves with Federal Reserve Banks............................ 29.3 30.2 27.6 30.3 29.6 23.6 29.7 32.6 34.6 32.6 37.7 8 Balances with banks............ 59.0 42.6 43.6 51.9 56.0 44.4 43.0 44.4 45.0 46.5 51.6 9 Cash items in process of collection.. 66.4 43.3 47.6 64.3 69.3 47.3 49.5 49.6 51.7 53.5 63.6 10 Total assets/total liabilities and capital i................................. 1,166.0 1,140.5 1,156.9 1,206.5 1,215.0 1,179.2 1,192.9 1,209.5 1,220.4 1,240.8 1,284.0 11 939.4 899.8 915.5 952.9 965.7 932.3 937.7 949.9 952.3 959.0 993.1 Demand: 12 Interbank.......................... 51.7 37.6 39.0 51.2 49.3 40.5 40.4 41.9 43.3 42.9 51.1 13 U.S. government.............. 7.3 4.9 6.2 3.3 8.0 4.3 2.8 11.0 7.6 2.1 2.3 14 Other................................. 323.9 281.2 293.8 312.9 317.5 296.3 298.6 297.1 299.2 304.7 327.1 Time: 15 9.8 9.0 9.0 9.4 10.2 10.3 10.7 11.6 11.1 11.8 12.4 16 Other................................... 546.6 567.1 567.5 576.1 580.8 580.9 585.2 588.3 591.2 597.6 600.3 17 Borrowings................................. 96.2 105.6 104.9 112.2 106.8 103.2 109.1 112.8 118.3 125.6 133.0 18 Total capital accounts2.............. 85.8 83.4 83.7 84.6 89.9 85.8 86.2 87.1 87.1 87.8 87.3 19 14,707 14,689 14,697 14,702 14,698 14,713 14,721 14,715 14,713 14,719 14,712 Member 20 Loans and investments............... 675.5 668.6 676.8 693.8 699.7 695.8 698.9 706.9 713.4 724.3 739.5 21 Loans, gross........................... 494.9 490.5 495.3 514.3 519.6 517.6 520.3 527.0 533.9 544.6 558.3 Investments: 22 U.S. Treasury securities. .. 70.4 68.2 68.8 66.9 67.4 65.7 65.3 65.4 64.1 63.5 63.6 23 Other................................... 110.1 109.9 112.7 112.7 112.7 112.5 113.3 114.5 115.3 116.2 117.6 24 Cash assets, total....................... 134.4 104.8 106.5 130.7 133.8 104.2 111.2 115.4 118.6 121.3 140.2 25 Currency and coin.,.............. 10.4 10.6 10.5 10.6 8.7 10.8 11.1 11.1 11.1 12.3 12.7 26 Reserves with Federal Reserve Banks.............................. 29.3 30.2 27.6 30.3 29.6 23.6 29.7 32.6 34.6 32.6 37.7 27 Balances with banks.............. 30.8 22.9 22.7 28.1 29.1 24.3 22.9 24.0 23.2 25.1 28.6 28 Cash items in process of collection.. 63.9 41.2 45.7 61.7 66.5 45.4 47.6 47.7 49.7 51.4 61.2 29 Total' assets/total liabilities and 861.8 833.2 843.3 884.7 888.7 857.3 868.5 882.2 891.2 908.5 945.2 30 Deposits...................................... 683.5 645.1 655.1 686.7 694.3 666.1 670.6 679.6 682.5 688.6 716.3 Demand: 31 Interbank............................ 48.0 34.7 36.0 47.5 45.5 37.3 37.2 38.6 39.9 39.5 47.3 32 5.4 3.7 4.5 2.2 5.6 3.1 1.9 8.1 5.7 1.5 1.6 33 Other.................................. 239.4 205.1 213.4 229.1 231.6 214.6 217.0 215.6 217.0 221.3 237.9 Time: 34 Interbank............................ 7.8 7.0 6.9 7.3 8.1 8.2 8.6 9.4 9.0 9.7 10.2 35 Other.................................. 382.9 394.7 394.3 400.5 403.4 402.9 405.9 407.8 411.0 416.7 419.3 36 84.9 91.8 91.1 96.9 92.1 88.0 93.9 97.2 101.4 108.1 115.9 37 Total capital accounts2............. 63.7 62.4 62.7 63.3 66.1 64.2 64.5 65.1 65.2 65.7 65.5 38 Memo: Number of banks....... 5,669 5,654 5,645 5,638 5,622 5,613 5,610 5,593 5,585 5,586 5,565 1 Includes items not shown separately. Note. Figures include all bank-premises subsidiaries and other sig­ Effective Mar. 31, 1976, some of the item “reserve for loan losses” nificant majority-owned domestic subsidiaries. and all of the item “unearned income on loans” are no longer reported Commercial banks: All such banks in the United States, including as liabilities. As of that date the “valuation” portion of “reserve for member and nonmember banks, stock savings banks, nondeposit trust loan losses” and the “unearned income on loans” have been netted companies, and U.S. branches of foreign banks. against “other assets,” and against “total assets” as well. Member banks: The following numbers of noninsured trust companies Total liabilities continue to include the deferred income tax portion of that are members of the Federal Reserve System are excluded from mem­ “reserve for loan losses.” ber banks in tables 1.24 and 1.25 and are included with noninsured banks 2 Effective Mar. 31, 1976, includes “reserves for securities” and the in table 1.25: 1976—December, 11; 1978—January, 12. contingency portion (which is small) of “reserve for loan losses.” 3 Figures partly estimated except on call dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A17 1.25 COMMERCIAL BANK ASSETS AND LIABILITIES Call-Date Series Millions of dollars, except for number of banks 1976 1977 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................................. 827,696 854,733 914,779 956,431 476,610 488,240 523,000 542,218 Loans 2 Gross................................................................ 578,734 601,122 657,509 695,443 340,691 351,311 384,722 403,812 3 Net................................................................... 560,077 581,143 636,318 672,207 329,971 339,955 372,702 390,630 Investments 4 U.S. Treasury securities................................. 101,461 100,568 99,333 97,001 55,727 53,345 52,244 50,519 5 Other................................................................ 147,500 153,042 157,936 163,986 80,191 83,583 86,033 87,886 6 Cash assets.............................................................. 129,562 130,726 159,264 157,393 76,072 74,641 92,050 90,728 7 Total assets/total liabilities1................................... 1,003,970 1,040,945 1,129,712 1,172,772 583,304 599,743 651,360 671,166 8 Deposits................................................................... 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 Interbank........................................................ 44,064 44,965 49,843 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 Interbank........................................................ 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 Borrowings.............................................................. 75,291 81,137 89,339 98,351 54,421 57,283 63,218 68,948 15 Total capital accounts............................................ 72,061 75,502 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 Loans and investments, gross................................. 144,000 144,597 152,514 157,464 207,085 221,896 239,265 256,749 Loans 18 Gross................................................................ 102,277 102,117 110,243 115,736 135,766 147,694 162,543 175,894 19 Net................................................................... 99,474 99,173 107,205 112,470 130,630 142,015 156,411 169,106 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 Cash assets.............................................................. 32,859 35,918 42,305 43,057 20,631 20,166 24,908 23,606 23 Total assets/total liabilities1................................... 189,579 195,452 210,442 217,384 231,086 245,748 267,910 284,221 24 Deposits................................................................... 149,491 152,472 163,436 167,403 206,134 218,519 239,053 251,539 Demand 25 429 371 1,241 1,158 917 813 1,896 2,315 26 Interbank......................................................... 19,295 20,568 22,346 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 Interbank......................................................... 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 Borrowings.............................................................. 17,310 19,697 21,736 23,167 3,559 4,155 4,384 6,235 31 Total capital accounts............................................. 13,199 13,441 14,182 14,670 17,542 18,919 19,905 21,384 32 Memo: Number of banks..................................... 1,023 1,019 1,014 1,005 8,639 8,705 8,729 8,760 Noninsured nonmember Total nonmember 33 Loans and investments, gross................................. 18,819 22,940 24,415 28,699 225,904 244,837 263,681 285,448 Loans 34 Gross................................................................ 16,336 20,865 22,686 26,747 152,103 168,559 185,230 202,641 35 Net................................................................... 16,209 20,679 22,484 26,548 146,840 162,694 178,896 195,655 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 Cash assets.............................................................. 6,496 8,330 9,458 9,360 27,127 28,497 34,367 32,967 39 Total assets/total liabilities1................................... 26,790 33,390 36,433 42,279 257,877 279,139 304,343 326,501 40 13,325 14,658 16,844 19,924 219,460 233,177 255,898 271,463 Demand 41 4 8 10 8 921 822 1,907 2,323 42 Interbank........................................................ 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 Borrowings.............................................................. 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 Financial Statistics □ April 1979 1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, September 30, 1978 Millions of dollars, except for number of banks. Member banks1 Insured Non­ Asset account commercial Large banks member banks banks1 Total All other New York City of Other City Chicago large 1 158,380 134,955 43,758 5,298 47,914 37,986 23,482 2 Currency and coin.................................................................... 12,135 8,866 867 180 2,918 4,901 3,268 3 Reserves with Federal Reserve Banks..................................... 28,043 28,041 3,621 1,152 12,200 11,067 3 4 Demand balances with banks in United States..................... 41,104 25,982 12,821 543 3,672 8,945 15,177 5 Other balances with banks in United States.......................... 4,648 2,582 601 15 648 1,319 2,066 6 Balances with banks in foreign countries.............................. 3,295 2,832 331 288 1,507 705 463 7 Cash items in process of collection......................................... 69,156 66,652 25,516 3,119 26,969 11,049 2,504 262,199 179,877 20,808 7,918 58,271 92,881 82,336 9 U.S. Treasury......................................................................... 95,068 65,764 9,524 2,690 22,051 31,499 29,315 10 Other U.S. government agencies............................................ 40,078 25,457 1,828 1,284 7,730 14,616 14,622 11 States and political subdivisions.............................................. 121,260 85,125 9,166 3,705 27,423 44,831 36,136 12 All other securities................................................................... 5,698 3,465 291 240 1,048 1,887 2,234 13 Unclassified total...................................................................... 94 66 19 47 28 14 Trading-account securities........................................................ 6,833 6,681 3,238 708 2,446 290 151 15 U.S. Treasury....................................................................... 4,125 4,103 2,407 408 1,210 78 23 16 Other U.S. government agencies........................................ 825 816 401 82 278 55 9 17 States and political subdivisions......................................... 1,395 1,381 363 117 794 107 14 18 All other trading account securities.................................... 394 316 67 101 145 3 78 19 94 66 19 47 28 20 Bank investment portfolios........................................................ 255,366 173,196 17,570 7,210 55,825 92,591 82,185 21 U.S. Treasury........................................................................ 90,943 61,661 7,117 2,282 20,840 31,422 29,293 22 Other U.S. government agencies....................................... 39,253 24,641 1,426 1,201 7,452 14,561 14,613 23 States and political subdivisions......................................... 119,865 83,745 8,803 3,588 26,629 44,724 36,123 24 All other portfolio securities................................................ 5,305 3,149 224 138 903 1,884 2,156 25 Federal Reserve stock and corporate stock............................... 1,656 1,403 311 111 507 475 253 26 Federal funds sold and securities resale agreement..................... 41,258 31,999 3,290 1,784 16,498 10,427 9,365 27 Commercial banks................................................................... 34,256 25,272 1,987 1,294 12,274 9,717 9,090 28 Brokers and dealers.................................................................. 4,259 4,119 821 396 2,361 541 140 29 Others........................................................................................ 2,743 2,608 482 94 1,863 169 135 30 Other loans, gross......................................................................... 675,915 500,802 79,996 26,172 190,565 204,069 175,113 31 Less: Unearned income on loans............................................ 17,019 11,355 675 107 3,765 6,809 5,664 32 Reserves for loan loss.................................................... 7,431 5,894 1,347 341 2,256 1,949 1,537 33 Other loans, net........................................................................ 651,465 483,553 11,91A 25,724 184,544 195,311 167,912 Other loans, gross, by category 34 Real estate loans....................................................................... 203,386 138,730 10,241 2,938 52,687 72,863 64,656 35 Construction and land development................................... 25,621 19,100 2,598 685 9,236 6,581 6,521 36 Secured by farmland............................................................ 8,418 3,655 23 34 453 3,146 4,763 37 Secured by residential properties........................................ 117,176 81,370 5,362 1,559 31,212 43,236 35,806 38 1- to 4-family residences.................................................... 111,674 77,422 4,617 1,460 29,774 41,570 34,252 39 FHA-insured or VA-guaranteed.................................. 7,503 6,500 508 44 3,446 2,502 1,003 40 Conventional................................................................ 104,171 70,922 4,109 1,417 26,328 39,068 33,249 41 Multifamily residences...................................................... 5,502 3,948 746 99 1,438 1,665 1,554 42 FHA-insured.................................................................. 399 340 132 27 88 92 59 43 Conventional................................................................. 5,103 3,609 613 72 1,350 1,573 1,495 44 Secured by other properties................................................ 52,171 34,605 2,258 660 11,786 19,901 17,566 45 Loans to financial institutions.................................................. 37,072 34,843 12,434 4,342 15,137 2,930 2,228 46 REITs and mortgage companies....................................... 8,574 8,162 2,066 801 4,616 680 412 47 Domestic commercial banks............................................... 3,362 2,618 966 165 1,206 281 744 48 Banks in foreign countries.................................................. 7,359 7,187 3,464 268 2,820 635 171 49 Other depositary institutions.............................................. 1,579 1,411 290 76 785 261 167 50 Other financial institutions................................................. 16,198 15,465 5,649 3,033 5,710 1,073 733 51 Loans to security brokers and dealers.................................... 11,042 10,834 6,465 1,324 2,846 199 207 52 Other loans to purchase or carry securities........................... 4,280 3,532 410 276 1,860 985 747 53 Loans to farmers—except real estate..................................... 28,054 15,296 168 150 3,781 11,196 12,758 54 Commercial and industrial loans............................................ 213,123 171,815 39,633 13,290 67,833 51,059 41,309 55 Loans to individuals................................................................ 161,599 110,974 7,100 2,562 40,320 60,993 50,624 56 Installment loans................................................................... 131,571 90,568 5,405 1,711 33,640 49,811 41,003 57 Passenger automobiles...................................................... 58,908 37,494 1,077 209 11,626 24,582 21,414 58 Residential repair and modernization............................. 8,526 5,543 331 60 2,088 3,064 2,983 59 Credit cards and related plans......................................... 21,938 19,333 2,268 1,267 9,736 6,062 2,605 60 Charge-account credit cards........................................ 17,900 16,037 1,573 1,219 8,192 5,053 1,863 61 Check and revolving credit plans................................ 4,038 3,296 695 47 1,545 1,009 742 62 Other retail consumer goods............................................ 19,689 13,296 421 57 5,242 7,570 6,393 63 Mobile homes............................................................... 9,642 6,667 179 19 2,563 3,905 2,976 64 Other.............................................................................. 10,047 6,629 249 38 2,678 3,664 3,417 65 Other installment loans.................................................... 22,510 14,902 1,302 119 4,948 8,533 7,608 66 Single-payment loans to individuals................................... 30,027 20,406 1.694 851 6,680 11,182 9,621 67 All other loans.......................................................................... 17,360 14,778 3; 545 1,290 6,100 3,844 2,582 956,579 696,833 102,383 35,536 259,820 299,094 259,867 69 Direct lease financing................................................................... 6,717 6,212 1,145 96 3,931 1,041 505 70 Fixed assets—Buildings, furniture, real estate........................... 22,448 16,529 2,332 795 6,268 7,133 5,926 71 Investment in unconsolidated subsidiaries................................. 3,255 3,209 1,642 188 1,282 96 46 72 Customer acceptances outstanding............................................. 16,557 16,036 8,315 1,258 6,054 409 521 73 Other assets................................................................................. 34,559 30,408 11,323 1,000 12,810 5,275 4,249 74 Total assets.................................................................................. 1,198,495 904,182 170,899 44,170 338,079 351,034 294,595 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A19 1.26 Continued Member banks1 Insured Non­ Liability or capital account commercial Large banks member banks banks1 Total All other New York City of Other City Chicago large 75 Demand deposits......................................................................... 369,030 282,450 66,035 10,690 100,737 104,988 86,591 76 Mutual savings banks............................................................ 1,282 1,089 527 1 256 305 194 77 Other individuals, partnerships, and corporations............. 279,651 205,591 31,422 7,864 79,429 86,876 74,061 78 U.S. government.................................................................... 7,942 5,720 569 188 1,987 2,977 2,222 79 States and political subdivisions............................................ 17,122 11,577 764 252 3,446 7,116 5,545 80 1,805 1,728 1,436 19 211 62 77 81 Commercial banks in United States..................................... 39,596 38,213 21,414 1,807 10,803 4,189 1,393 82 Banks in foreign countries..................................................... 7,379 7,217 5,461 207 1,251 298 162 83 Certified and officers’ checks, etc.......................................... 14,253 11,315 4,443 352 3,354 3,166 2,937 84 Time deposits.............................................................................. 368,562 266,496 38,086 15,954 98,525 113,931 102,066 8*5 79 66 1 65 13 86 Mutual savings banks............................................................ 399 392 177 40 148 27 7 87 Other individuals, partnerships, and corporations.............. 292,120 210,439 29,209 12,074 76,333 92,824 81,680 88 U.S. government................................................................... 864 689 61 40 356 232 175 89 States and political subdivisions............................................ 59,087 40,010 1,952 1,554 16,483 20,020 19,077 90 Foreign governments, central banks, etc.............................. 6,672 6,450 3,780 1,145 1,401 124 222 91 Commercial banks in United States..................................... 7,961 7,289 2,077 999 3,585 629 672 92 Banks in foreign countries.................................................... 1,381 1,161 829 103 219 9 220 93 Savings deposits.......................................................................... 223,326 152,249 10,632 2,604 54,825 84,188 71,077 94 Individuals and nonprofit organizations............................... 207,701 141,803 9,878 2,448 51,161 78,316 65,897 95 Corporations and other profit organizations....................... 11,216 7,672 519 148 3,195 3,809 3,544 96 U.S. government.................................................................... 82 65 2 3 24 35 17 97 States and political subdivisions............................................ 4,298 2,682 215 4 437 2,025 1,616 98 All other................................................................................. 30 27 18 * 8 2 3 99 Total deposits............................................................................. 960,918 701,195 114,753 29,248 254,087 303,107 259,733 100 Federal funds purchased and securities sold under agreements to repurchase....................................................................... 91,981 85,582 21,149 8,777 41,799 13,857 6,398 101 Commercial banks................................................................. 42,174 39,607 6,991 5,235 21,609 5,773 2,566 102 Brokers and dealers............................................................... 12,787 11,849 2,130 1,616 6,381 1,722 939 103 Others...................................................................................... 37,020 34,126 12,028 1,926 13,809 6,362 2,894 104 Other liabilities for borrowed money....................................... 8,738 8,352 3,631 306 3,191 1,225 386 105 Mortgage indebtedness.............................................................. 1,767 1,455 234 27 701 491 316 106 Bank acceptances outstanding.................................................. 16,661 16,140 8,398 1,260 6,070 412 521 107 Other liabilities........................................................................... 27,124 23,883 8,860 1,525 9,020 4,477 3,494 1,107,188 836,607 157,026 41,144 314,868 323,569 270,849 109 Subordinated notes and debentures.......................................... 5,767 4,401 1,001 79 2,033 1,287 1,366 110 Equity capital............................................................................. 85,540 63,174 12,871 2,947 21,177 26,178 22,380 Ill Preferred stock ................................. .... 88 36 5 31 52 112 Common stock....................................................................... 17,875 12,816 2.645 570 4,007 5,594 5,064 113 Surplus..................................................................................... 32,341 23,127 4,541 1,404 8,148 9,034 9,217 114 Undivided profits................................................................... 33,517 26,013 5,554 921 8,680 10,858 7,509 115 Other capital reserves............................................................. .1,719 1,182 132 52 337 661 538 116 Total liabilities and equity capital............................................. 1,198,495 904,182 170,899 44,170 338,079 351,034 294,595 Memo items: 117 Demand deposits adjusted2....................................................... 252,337 171,864 18,537 5,576 60,978 86,774 80,472 Average for last 15 or 30 days: 118 Cash and due from bank....................................................... 146,283 124,916 36,862 6,030 45,731 36,293 21,379 119 Federal funds sold and securities purchased under agree­ ments to resell................................................................. 43,873 33,682 4,272 1,887 16,007 11,517 10,307 120 Total loans............................................................................. 651,874 483,316 76,750 25,722 184,790 196,054 168,558 121 Time deposits of $100,000 or more....................................... 183,614 150,160 32,196 13,216 65,776 38,972 33,454 122 Total deposits......................................................................... 944,593 687,543 107,028 28,922 250,804 300,789 257,062 123 Federal funds purchased and securities sold under agree­ ments to repurchase........................................................ 92,685 86,635 22,896 9,473 40,541 13,725 6,053 124 Other liabilities for borrowed money................................... 8,716 8,326 3,679 370 3,211 1,067 390 125 Standby letters of credit outstanding........................................ 18,820 17,658 10,063 1,477 4,820 1,297 1,162 126 Time deposits of $100,000 or more.......................................... 186,837 152,553 32,654 13,486 66,684 39,728 34,284 127 160,227 129,667 27,950 11,590 56,383 33,743 30,560 128 Other time deposits................................................................ 26,610 22,886 4,704 1,896 10,301 5,985 3,724 129 Number of banks....................................................................... 14,390 5,593 12 9 153 5,419 8,810 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 deduc­ commercial 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 issues of the Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Financial Statistics □ April 1979 1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $150 Million or More on December 31, 1977, Assets and Liabilities Millions of dollars, Wednesday figures 1979 Account Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28* Mar. 7* Mar. 14* Mar. 21* Mar. 28* 1 Cash items in process of collection..................... 44,193 42,152 44,504 49,562 49,083 42,944 44,596 40,658 44,700 2 Demand deposits due from banks in the United States.............................................................. 14,321 13,340 12,571 13,862 15,538 12,285 12,537 13,823 12,472 3 All other cash and due from depositary institutions..................................................... 29,878 33,125 36,096 26,631 28,925 24,686 35,288 24,739 28,923 4 Total loans and securities..................................... 451,140 450,590 451,292 459,394 455,176 460,266 455,966 461,963 457,323 Securities 5 U.S. Treasury securities........................................ 34,990 35,235 34,938 36,186 36,132 38,380 37,132 37,283 36,939 6 Trading account................................................ 3,934 3,892 3,472 4,418 4,410 5,328 4,302 4,438 4,130 7 Investment account, by maturity..................... 31,056 31,343 31,466 31,768 31,722 33,052 32,830 32,845 32,809 8 One year or less............................................ 7,935 8,295 8,373 8,424 8,588 9,679 9,651 9,718 9,717 9 Over one through five years......................... 18,944 18,705 18,789 18,817 18,682 19,002 18,890 18,854 18,826 10 Over five years.............................................. 4,176 4,343 4,304 4,528 4,451 4,371 4,288 A,212 A,261 11 Other securities...................................................... 64,238 64,798 64,381 64,616 64,443 64,487 65,327 64,973 65,195 12 Trading account................................................ 2,485 2,946 2,646 2,625 2,596 2,594 3,133 2,760 2,863 13 Investment account........................................... 61,754 61,852 61,735 61,992 61,847 61,893 62,194 62,213 62,332 14 U.S. government agencies............................ 12,094 12,136 12,109 12,199 12,287 12,189 12,436 12,467 12,430 15 States and political subdivision, by maturity. 46,838 46,890 46,809 46,976 46,808 46,935 46,992 46,986 47,136 16 One year or less........................................ 7,620 7,514 7,383 7,388 7,179 7,488 7,500 7,515 7,561 17 Over one year............................................ 39,217 39,376 39,426 39,587 39,629 39,447 39,492 39,471 39,575 18 Other bonds, corporate stocks and securities................................................. 2,822 2,826 2,816 2,817 2,752 2,769 2,765 2,759 2,766 Loans 19 Federal funds sold1............................................... 25,483 24,807 24,456 29,694 25,821 28,821 25,736 30,715 25,549 20 To commercial banks....................................... 17,732 17,237 17,765 18,364 17,992 17,649 18,195 20,633 17,800 21 To nonbank brokers and dealers in securities. 5,628 5,600 4,935 8,008 5,184 7,528 5,093 6,997 5,425 22 To others............................................................ 2,124 1,970 1,756 3,322 2,645 3,644 2,449 3,085 2,324 23 Other loans, gross................................................. 336,481 335,900 337,734 339,121 338,978 338,850 338,084 339,367 340,053 24 Commercial and industrial............................... 131,648 132,311 133,112 133,825 134,097 133,975 134,074 135,071 135,918 25 Bankers’ acceptances and commercial paper....................................................... 3,489 3,484 3,760 3,844 3,678 3,425 3,308 3,159 3,405 26 All other........................................................ 128,159 128,827 129,352 129,980 130,419 130,550 130,766 131,912 132,514 27 U.S. addresses............................................ 121,838 122,554 123,098 123,699 124,194 124,362 124,632 125,710 126,319 28 Non-U.S. addressees.................................. 6,320 6,273 6,254 6,281 6,225 6,188 6,134 6,202 6,194 29 Real estate......................................................... 81,811 81,754 81,984 82,236 82,372 82,582 82,915 83,082 83,274 30 To individuals for personal expenditures........ 60,641 60,614 60,577 60,683 60,843 60,885 61,007 61,185 61,447 To financial institutions 31 Commercial banks in the U.S...................... 2,915 2,811 3,094 3,287 2,851 2,633 2,886 2,709 2,744 32 Banks in foreign countries........................... 8,401 7,882 8,416 8,459 8,073 7,723 8,019 7,670 7,040 33 Sales finance, personal finance companies, etc............................................................ 7,985 8,146 8,150 7,824 7,934 8,184 8,047 8,057 8,084 34 Other financial institutions........................... 15,154 14,971 15,128 14,937 14,952 15,042 14,782 14,676 14,611 35 To nonbank brokers and dealers in securities. 8,671 8,264 7,601 8,241 7,924 8,266 6,982 7,603 7,405 36 To others for purchasing and carrying securities2................................................... 2,309 2,327 2,332 2,333 2,364 2,380 2,388 2,318 2,326 37 To finance agricultural production................. 4,470 4,420 4,439 4,444 4,424 4,464 4,507 4,544 4,578 38 All other............................................................ 12,476 12,399 12,902 12,852 13,145 12,715 12,476 12,451 12,624 39 Less: Unearned income........................................ 5,626 5,662 5,722 5,724 5,647 5,684 5,739 5,791 5,834 40 4,427 4,487 4,495 4,499 4,551 4,588 4,574 4,584 4,578 41 Other loans, net..................................................... 326,428 325,750 327,517 328,898 328,780 328,577 327,771 328,992 329,640 42 Lease financing receivables.................................. 5,513 5,457 5,462 5,515 5,554 5,572 5,630 5,654 5,681 43 All other assets...................................................... 64,555 63,534 63,381 62,648 63,546 62,338 63,075 62,382 60,801 44 Total assets............................................................ 609,600 608,199 613,306 617,613 617,823 608,090 617,092 609,219 609,900 Deposits 45 Demand deposits.................................................... 176,174 170,192 174,570 183,299 180,205 167,876 172,469 168,171 169,110 46 Mutual savings banks....................................... 747 707 731 728 698 766 692 651 611 47 Individuals, partnerships, and corporations.. 124,395 119,962 125,565 129,118 125,848 120,399 124,087 119,885 120,176 48 States and political subdivisions..................... 5,274 4,730 4,767 4,756 5,228 4,303 4,384 A,736 4,355 49 U.S. government............................................... 1,406 759 888 2,351 858 775 886 918 763 50 Commercial banks in United States............... 29,035 27,439 27,280 30,400 31,659 26,375 28,332 27,662 26,546 51 Banks in foreign countries............................... 6,667 6,473 6,900 7,724 6,565 6,796 6,498 6,742 6,549 52 Foreign governments and official institutions. 1,165 1,450 1,250 1,115 1,496 1,168 1,138 1,131 1,182 53 Certified and officers’ checks........................... 7,485 8,671 7,189 7,105 7,852 7,293 6,452 6,444 8,927 54 Time and savings deposits..................................... 258,305 257,732 257,661 257,627 257,725 257,676 257,564 256,893 256,756 55 Savings............................................................... 76,054 76,228 76,084 76,160 76,026 76,407 76,248 76,558 76,831 56 Individuals and nonprofit organizations..... 70,939 71,087 70,963 71,061 70,991 71,324 71,191 71,491 71,745 57 Partnerships and corporations operated for profit....................................................... 4,236 4,222 4,214 4,199 4,167 4,202 4,178 4,176 4,231 58 Domestic governmental units....................... 858 896 883 874 845 856 859 859 833 59 All other........................................................ 21 23 24 26 23 25 20 32 23 60 Time................................................................... 182,251 181,504 181,577 181,467 181,700 181,269 181,316 180,335 179,925 61 Individuals, partnerships, and corporations.. 142,957 142,575 142,621 142,412 142,710 142,465 142,501 141,587 141,430 62 States and political subdivisions..................... 23,866 23,882 24,024 24,132 24,302 24,070 24,116 24,062 23,887 63 483 497 499 502 487 492 510 488 476 64 Commercial banks in United States............... 7,632 7,419 7,399 7,370 7,394 7,438 7,379 7,389 7,270 65 Foreign governments, official institutions, and banks................................................. 7,313 7,131 7,034 7,050 6,806 6,805 6,810 6,808 6,862 66 Federal funds purchased 3................................ 70,698 81,581 82,660 77,641 77,056 81,379 86,598 79,082 81,065 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks.. 3,602 44 498 356 816 1,490 731 1,104 838 68 Treasury tax-and-loan notes................... 7,097 4,287 2,531 2,814 1,964 1,260 323 5,011 2,215 69 All other liabilities for borrowed money. .. 7,617 8,733 8,988 8,671 11,561 9,632 10,986 9,852 9,672 70 Other liabilities and subordinated note and debentures.................................................. 44,252 43,727 44,633 45,379 46,502 46,869 46,378 47,279 48,241 71 Total liabilities.................................................. 567,746 566,295 571,540 575,787 575,828 566,183 575,050 567,392 567,900 72 Residual (total assets minus total liabilities)4. 41,854 41,904 41,765 41,826 41,995 41,908 42,042 41,827 42,000 1 Includes securities purchased under agreements to resell. 4 This is not a measure of equity capital for use in capital adequacy 2 Other than financial institutions and brokers and dealers. analysis or for other analytic uses. 3 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A21 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billion or More on December 31, 1977 Assets and Liabilities Millions of dollars, Wednesday figures 1979 Account Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28p Mar. iv Mar. 14? Mar. 21 v Mar. 28? 1 Cash items in process of collection..................... 41,972 40,276 42,396 46,860 46,747 40,846 42,498 38,606 42,734 2 Demand deposits due from banks in the United States.............................................................. 13,644 12,668 11,851 13,056 14,774 11,669 11,917 13,154 11,821 3 All other cash and due from depositary institutions..................................................... 28,143 31,247 34,422 25,165 27,028 23,211 33,417 23,235 27,158 4 Total loans and securities..................................... 421,565 421,207 421,750 429,664 425,920 430,578 426,347 431,982 427,846 Securities 5 U.S. Treasury securities....................................... 32,593 32,836 32,532 33,803 33,725 35,943 34,708 34,834 34,488 6 Trading account................................................ 3,896 3,859 3,429 4,379 4,355 5,266 4,264 4,388 4,076 7 Investment account, by maturity..................... 28,697 28,977 29,102 29,424 29,370 30,677 30,443 30,446 30,411 8 One year or less............................................ 7,298 7,655 7,732 7,814 7,975 9,049 9,013 9,092 9,099 9 Over one through five years....................... 17,612 17,365 17,453 17,463 17,275 17,588 17,463 17,402 17,368 10 Over five years.............................................. 3,787 3,957 3,918 4,147 4,119 4,040 3,968 3,952 3,944 11 Other securities...................................................... 59,324 59,884 59,472 59,737 59,519 59,583 60,392 60,042 60,245 12 2,406 2,873 2,575 2,582 2,547 2,547 3,076 2,702 2,808 13 Investment account........................................... 56,918 57,011 56,897 57,156 56,971 57,036 57,316 57,340 57,437 14 U.S. government agencies............................. 11,270 11,294 11,282 11,382 11,434 11,348 11,589 11,613 11,576 15 States and political subdivision, by maturity. 43,061 43,117 43,027 43,180 43,014 43,147 43,191 43,185 43,312 16 One year or less........................................ 7,040 6,946 6,811 6,809 6,593 6,812 6,813 6,820 6,862 17 Over one year............................................ 36,021 36,171 36,216 36,371 36,421 36,335 36,378 36,365 36,451 18 Other bonds, corporate stocks and securities................................................. 2,586 2,599 2,587 2,593 2,523 2,540 2,536 2,541 2,548 Loans 19 Federal funds sold1............................................... 23,342 22,824 22,309 27,390 24,058 26,634 23,664 28,421 23,750 20 To commercial banks....................................... 15,970 15,603 15,965 16,458 16,468 15,716 16,371 18,656 16,228 21 To nonbank brokers and dealers in securities. 5,258 5,264 4,618 7,678 4,977 7,297 4,867 6,783 5,229 22 To others............................................................ 2,115 1,957 1,726 3,254 2,613 3,621 2,426 2,982 2,294 23 Other loans, gross................................................. 315,620 315,071 316,909 318,206 318,062 317,931 317,130 318,292 319,004 24 Commercial and industrial............................... 124,857 125,492 126,298 126,928 127,175 127,076 127,137 128,028 128,889 25 Bankers’ acceptances and commercial paper....................................................... 3,424 3,408 3,690 3,774 3,609 3,360 3,246 3,088 3,340 26 All other........................................................ 121,433 122,083 122,607 123,154 123,566 123,716 123,891 124,940 125,549 27 U.S. addresses............................................ 115,161 115,859 116,402 116,922 117,390 117,578 117,810 118,792 119,408 28 Non-U.S. addressees.................................. 6,272 6,224 6,205 6,232 6,175 6,138 6,081 6,148 6,141 29 Real estate.......................................................... 76,640 76,584 76,796 77,043 77,175 77,384 77,700 77,858 78,039 30 To individuals for personal expenditures........ 53,992 53,967 53,914 54,028 54,179 54,210 54,309 54,465 54,716 To financial institutions 31 Commercial banks in the U.S...................... 2,819 2,719 2,992 3,181 2,749 2,544 2,796 2,625 2,657 32 Banks in foreign countries........................... 8,319 7,814 8,342 8,376 7,989 7,650 7,935 7,597 6,972 33 Sales finance, personal finance companies, etc............................................................ 7,793 7,965 7,986 7,661 7,782 8,031 7,903 7,902 7,918 34 Other financial institutions........................... 14,625 14,440 14,605 14,430 14,445 14,528 14,284 14,212 14,167 35 To nonbank brokers and dealers in securities. 8,564 8,160 7,512 8,149 7,836 8,172 6,897 7,513 7,310 36 To others for purchasing and carrying securities2................................................... 2,001 2,023 2,034 2,037 2,069 2,090 2,107 2,045 2,045 37 To finance agricultural production................. 4,315 4,271 4,290 4,296 4,281 4,321 4,362 4,396 4,430 38 All other............................................................ 11,693 11,635 12,140 12,076 12,383 11,925 11,702 11,650 11,861 39 Less: Unearned income........................................ 5,141 5,176 5,234 5,233 5,162 5,196 5,245 5,293 5,334 40 4,172 4,232 4,238 4,240 4,281 4,317 4,302 4,313 4,307 41 Other loans, net..................................................... 306,306 305,663 307,437 308,734 308,618 308,419 307,583 308,685 309,363 42 Lease financing receivables.................................. 5,355 5,299 5,303 5,365 5,396 5,411 5,469 5,493 5,519 43 All other assets...................................................... 62,933 61,956 61,816 61,220 62,011 60,864 61,607 60,919 59,309 44 Total assets............................................................ 573,613 572,653 577,538 581,320 581,877 572,579 581,256 573,391 574,385 Deposits 45 Demand deposits.................................................... 165,426 159,957 163,833 172,084 169,524 157,567 161,946 157,911 159,015 46 Mutual savings banks....................................... 717 677 702 702 665 712 666 628 584 47 Individuals, partnerships, and corporations.. 116,158 112,010 117,167 120,461 117,655 112,470 115,773 112,038 112,297 48 States and political subdivisions..................... 4,576 4,127 4,130 4,157 4,594 3,784 3,812 3,969 3,688 49 U.S. government............................................... 1,295 660 804 2,Ml 748 592 808 819 688 50 Commercial banks in United States............... 27,716 26,184 26,043 28,980 30,281 25,072 27,101 26,425 25,389 51 Banks in foreign countries............................... 6,591 6,409 6,837 7,662 6,489 6,738 6,434 6,687 6,491 52 Foreign governments and official institutions. 1,162 1,446 1,247 1,109 1,494 1,154 1,134 1,130 1,180 53 Certified and officers’ checks........................... 7,209 8,444 6,903 6,835 7,599 7,045 6,216 6,215 8,698 54 Time and savings deposits..................................... 241,483 240,784 240,622 240,618 240,754 240,672 240,477 239,790 239,714 55 70,496 70,650 70,533 70,605 IQ,All 70,811 70,645 70,935 71,226 56 Individuals and nonprofit organizations.... 65,755 65,898 65,811 65,893 65,824 66,141 66,016 66,287 66,548 57 Partnerships and corporations operated for 3,921 3,906 3,895 3,880 3,855 3,886 3,865 3,868 3,920 58 Domestic governmental units....................... 798 823 803 807 111 760 746 750 736 59 All other........................................................ 21 23 23 26 22 24 . 19 31 22 60 Time................................................................... 170,987 170,134 170,090 170,013 170,282 169,861 169,832 168,855 168,489 61 Individuals, partnerships, and corporations.. 134,167 133,717 133,644 133,463 133,772 133,518 133,500 132,581 132,436 62 States and political subdivisions..................... 21,711 21,696 21,838 21,945 22,135 21,917 21,940 21,880 . 21,738 63 U.S. government............................................... 479 492 494 498 482 487 505 483 470 64 Commercial banks in United States.......... 7,333 7,113 7,096 7,073 7,103 7,151 7,092 7,116 6,997 65 Foreign governments, official institutions, and banks.................................................. 7,298 7,115 7,017 7,034 6,790 6,788 6,794 6,794 6,847 66 Federal funds purchased3.................................... 66,997 77,588 78,922 73,777 73,042 77,354 82,574 75,106 76,971 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks.. 3,490 44 457 324 703 1,478 675 1,066 767 68 Treasury tax-and-loan notes......................... 6,583 4,009 2,397 2,607 1,816 1,150 272 4,662 2,057 69 All other liabilities for borrowed money... 7,260 8,368 8,633 8,380 11,277 9,275 10,654 9,503 9,355 70 Other liabilities and subordinated note and debentures.................................................. 43,125 42,594 43,505 44,309 45,346 AS,11A 45,226 46,123 47,129 71 Total liabilities.................................................. 534,365 533,344 538,370 542,099 542,460 533,271 541,824 534,161 535,009 72 Residual (total assets minus total liabilities)4. 39,248 39,309 39,168 39,221 39,416 39,308 39,432 39,230 39,376 1 Includes securities purchased under agreements to resell. 4 This is not a measure of equity capital for use in capital adequacy 2 Other than financial institutions and brokers and dealers. analysis or for other analytic uses. 3 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Financial Statistics □ April 1979 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1979 Account Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28p Mar. Ip Mar. \4p Mar. 21 p Mar. 28v 1 Cash items in process of collection..................... 15,975 16,810 16,544 14,792 18,084 15,648 15,851 13,768 18,038 2 Demand deposits due from banks in the United States............................................................. 8,627 8,381 7,315 7,618 9,662 7,609 7,737 9,008 7,824 3 All other cash and due from depositary institutions..................................................... 7,620 8,963 9,655 5,562 5,999 5,921 8,164 5,618 6,503 96,429 96,663 96,908 100,654 97,452 98,095 97,209 100,060 97,294 Securities 5 6 7 Investment account, by maturity..................... 5,844 6,244 6,336 6,698 6,604 7,233 6,956 7,003 7,004 8 650 767 748 888 932 1,121 1,059 1,135 1,117 9 Over one through five years......................... 4,447 4,626 4,749 4,766 4,659 5,149 4,969 4,939 4,970 10 Over five years.............................................. 748 850 839 1,044 1,013 963 928 928 917 11 P 13 Investment account........................................... 11,258 11,355 11,250 11,266 11,012 11,145 11,031 11,021 11,066 14 U.S. government agencies............................. 1,405 1,505 1,440 1,447 1,413 1,513 1,453 1,396 1,390 15 States and political subdivision, by maturity. 9,205 9,208 9,165 9,173 9,037 9,078 9,030 9,079 9,126 16 One year or less......................................... 1,732 1,645 1,666 1,617 1,464 1,492 1,470 1,528 1,558 17 7,473 7,564 7,499 7,556 7,573 7,587 7,561 7,551 7,568 18 Other bonds, corporate stocks and securities 648 641 645 646 561 553 548 546 549 Loans 6,419 6,362 5,567 8,699 6,483 6,348 6,458 9,367 6,618 20 4,779 4,146 3,558 5,023 3,922 2,476 3,790 6,420 3,976 21 To nonbank brokers and dealers in securities. 1,281 1,966 1,759 2,774 1,689 2,763 1,818 2,245 1,995 27 To others............................................................ 358 250 250 902 872 1,109 850 701 647 23 Other loans, gross............................................. 74,912 74,736 75,820 76,061 75,423 75,459 74,854 74,763 74,713 24 Commercial and industrial........................... 37,404 37,599 38,084 38,256 38,287 38,340 38,273 38,279 38,460 25 Bankers’ acceptances and commercial paper................................................... 964 921 1,121 1,094 950 925 908 822 900 26 All other..................................................... 36,440 36,678 36,964 37,162 37,337 37,415 37,364 37,457 37,560 27 U.S. addressees.................*................... 34,091 34,393 34,683 34,876 35,076 35,168 35,128 35,224 35,331 28 Non-U.S. addressees............................. 2,349 2,286 2,280 2,286 2,261 2,247 2,237 2,233 2,229 29 Real estate...................................................... 10,293 10,285 10,323 10,391 10,377 10,404 10,464 10,477 10,504 30 To individuals for personal expenditures.... 7,274 7,255 7,255 7,258 7,264 7,290 7,305 7,319 7,344 To financial institutions 31 Commercial banks in the U.S.................. 1,010 884 1,191 1,266 953 965 1,219 964 974 32 Banks in foreign countries...................... 3,497 3,331 3,916 3,930 3,548 3,421 3,732 3,517 3,147 33 Sales finance, personal finance companies, etc........................................................ 3,017 3,152 3,236 2,950 3,064 3,230 3,160 3,117 3,081 34 Other financial institutions....................... 4,404 4,364 4,405 4,340 4,373 4,315 4,096 4,119 4,130 35 To nonbank brokers and dealers in securities. 4,823 4,560 4,042 4,439 4,221 4,354 3,477 3,888 3,915 36 To others for purchasing and carrying 411 412 421 418 432 430 421 353 355 37 To finance agricultural production.............. 200 201 209 216 206 209 223 236 227 38 2,579 2,693 2,736 2,596 2,695 2,500 2,485 2,492 2,575 39 639 648 669 669 660 667 674 679 689 40 1,364 1,386 1,396 1,401 1,410 1,423 1,417 1,414 1,417 72,908 72,702 73,754 73,990 73,354 73,369 72,764 72,669 72,607 42 Lease financing receivables.................................. 492 493 498 498 499 500 529 529 531 43 32,026 31,084 30,567 31,230 32,157 32,012 33,071 32,482 31,261 161,169 162,394 161,486 160,354 163,854 159,784 162,561 161,465 161,451 Deposits 56,103 54,308 53,978 56,149 58,556 51,369 53,254 53,823 53,955 46 Mutual savings banks............................ 421 405 417 395 381 399 392 352 313 47 Individuals, partnerships, and corporations... 29,397 27,691 28,837 29,060 29,600 26,755 27,885 28,302 27,799 48 States and political subdivisions...................... 518 462 547 476 412 365 384 508 382 49 224 77 101 571 102 92 134 113 102 50 16,645 14,965 14,856 15,838 18,552 14,188 16,295 15,782 14,490 51 Banks in foreign countries............................. 4,924 4,848 5,189 5,798 4,662 5,035 4,653 5,056 4,872 52 Foreign governments and official institutions. 770 974 982 867 1,255 870 832 890 933 53 Certified and officers’ checks........................... 3,197 4,886 3,049 3,144 3,593 3,664 2,679 2,820 5,064 50,996 50,823 50,265 50,397 49,881 49,672 49,677 49,306 48,447 55 9,486 9,551 9,535 9,538 9,548 9,617 9,617 9,686 9,767 56 Individuals and nonprofit organizations---- 8,842 8,892 8,890 8,896 8,913 8,983 8,993 9,042 9,129 57 Partnerships and corporations operated for 438 438 441 441 440 440 435 446 448 58 Domestic governmental units....................... 196 210 191 187 184 178 178 174 178 59 9 12 13 14 12 16 10 23 12 60 41,510 41,272 40,729 40,858 40,333 40,055 40,061 39,621 38,680 61 Individuals, partnerships, and corporations. 31,741 31,660 31,206 31,265 31,071 30,813 30,861 30,460 29,738 62 States and political subdivisions.................. 1,817 1,839 1,868 1,906 1,877 1,868 1,844 1,852 1,765 63 35 36 30 29 23 28 40 43 43 64 Commercial banks in U.S........................... 3,375 3,328 3,275 3,296 3,274 3,274 3,194 3,179 3,060 65 Foreign governments, official institutions, and banks.............................................. 4,541 4,409 4,350 4,362 4,087 4,072 4,121 4,087 4,074 66 Federal funds purchased 6.................................... 17,168 22,205 22,353 18,931 19,291 22,385 24,328 21,342 22,398 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks....... 2,021 490 155 279 386 68 Treasury tax-and-loan notes........................... 1,255 784 482 324 411 210 2 1,264 498 69 All other liabilities for borrowed money........ 3,770 4,047 4,037 3,930 4,049 3,990 3,985 3,869 3,766 70 Other liabilities and subordinated note and debentures..................................................... 17,150 17,438 17,623 17,776 IS,111 18,890 18,217 18,776 19,248 71 148,462 149,605 148,739 147,506 150,966 147,006 149,619 148,660 148,698 72 Residual (total assets minus total liabilities)7.. 12,707 12,789 12,748 12,848 12,889 12,779 12,943 12,806 12,752 1 Excludes trading account securities. 5 Includes trading account securities. 2 Not available due to confidentiality. 6 Includes securities sold under agreements to repurchase. 3 Includes securities purchased under agreements to resell. 7 This is not a measure of equity capital for use in capital adequacy 4 Other than financial institutions and brokers and dealers. analysis or for other analytic uses. 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 1979 Account Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28* Mar. 7* Mar. 14* Mar. 21* Mar. 28* Large weekly reporting banks with assets of $750 million or more 1 Total loans (gross) and investments adjusted1... 440,546 440,692 440,650 447,966 444,532 450,256 445,198 448,996 447,191 2 Total loans (gross) adjusted1............................... 341,318 340,659 341,331 347,163 343,956 347,389 342,739 346,740 345,057 3 Demand deposits adjusted 2................................. 101,540 99,843 101,899 100,984 98,605 97,782 98,654 98,932 97,101 4 Time deposits in accounts of $100,000 or more... 131,950 131,068 131,029 130,781 130,790 130,191 129,948 128,711 128,274 5 Negotiable CDs................................................ 96,243 95,485 95,240 95,124 94,714 94,244 93,767 92,697 92,361 6 Other time deposits.......................................... 35,707 35,584 35,789 35,657 36,076 35,947 36,181 36,013 35,913 7 Loans sold outright to affilates 3........................... 3,570 3,578 3,615 3,618 3,540 3,491 3,474 3,504 3,631 8 Commercial and industrial............................... 2,501 2,481 2,554 2,562 2,489 2,496 2,467 2,498 2,594 9 Other.................................................................. 1,069 1,097 1,061 1,056 1,050 995 1,007 1,006 1,037 Large weekly reporting banks with assets of $1 billion or more 10 Total loans (gross) and investments adjusted1... 412,090 412,292 412,265 419,497 416,147 421,831 416,727 420,308 418,603 11 Total loans (gross) adjusted1............................... 320,173 319,573 320,261 325,956 322,903 326,306 321,627 325,432 323,870 12 Demand deposits adjusted2................................. 94,442 92,838 94,590 94,068 91,748 91,056 91,538 92,061 90,205 13 Time deposits in accounts of $100,000 or more... 124,399 123,411 123,269 123,046 123,119 122,558 122,259 121,037 120,638 14 Negotiable CDs................................................ 91,608 90,762 90,535 90,370 89,983 89,519 89,015 87,952 87,608 15 Other time deposits.......................................... 32,791 32,648 32,734 32,676 33,136 33,040 33,244 33,085 33,029 16 Loans sold outright to affiliates3........................... 3,528 3,537 3,573 3,575 3,498 3,453 3,435 3,463 3,590 17 Commercial and industrial............................... 2,484 2,464 2,-535 2,543 2,471 2,480 2,452 2,482 2,577 18 Other.................................................................. 1,044 1,073 1,038 1,033 1,027 973 983 981 1,013 Large weekly reporting banks5 in New York City 19 Total loans (gross) and investments adjusted1-4. 92,644 93,666 94,224 96,435 94,646 96,745 94,292 94,768 94,450 20 Total loans (gross) adjusted1............................... 75,542 76,068 76,637 78,471 77,030 78,366 76,305 76,744 76,381 21 Demand deposits adjusted2................................. 23,259 22,456 22,478 24,949 21,817 21,440 20,974 24,160 21,326 22 Time deposits in accounts of $100,000 or more... 36,422 36,192 35,638 35,698 35,191 34,886 34,810 34,351 33,438 23 Negotiable CDs................................................ 29,139 28,844 28,309 28,321 27,683 27,373 27,248 26,874 26,062 24 Other time deposits.......................................... 7,282 7,348 7,329 7,377 7,508 7,513 7,562 7,477 7,376 1 Exclusive of loans and federal funds transactions with domestic com­ 3 Loans sold are those sold outright to a bank’s own foreign branches, mercial banks. nonconsolidated nonbank affiliates of the bank, the bank’s holding com­ 2 All demand deposits except U.S. government and domestic banks pany (if not a bank) and nonconsolidated nonbank subsidiaries of the less cash items in process of collection. holding company. 4 Excludes trading account securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Financial Statistics □ April 1979 1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial Loans Millions of dollars Outstanding Net change during— Industry classification 1978 1979 1978 1979 1979 Nov. 29 Dec. 27 Jan. 31 ' Feb. 28 *• Mar. 28 Q4 Ql Jan. Feb. Mar. 1 Durable goods manufacturing.......... 17,325 18,004 17,786 18,818 19,482 365 1,478 -218 1,032 664 2 Nondurable goods manufacturing... 16,775 17,216 16,474 16,829 17,466 213 250 -742 355 637 3 Food, liquor, and tobacco............. 4,654 4,936 4,620 4,689 4,816 686 -120 -316 69 127 4 Textiles, apparel, and leather........ 3,964 3,726 3,788 3,954 4,199 -624 473 62 166 245 5 Petroleum refining.......................... 2,522 2,643 2,370 2,353 2,274 153 -369 -273 -17 -79 6 Chemicals and rubber.................... 3,210 3,540 3,285 3,384 3,508 88 -32 -255 99 124 7 Other nondurable goods................ 2,425 2,371 2,411 2,449 2,669 -89 298 40 38 220 8 Mining (including crude petroleum and natural gas).......................... 10,495 10,652 10,038 9,973 10,130 200 -522 -614 -65 157 9 Trade................................................... 20,364 19,964 21,136 21,532 22,479 817 2,515 1,172 396 947 10 Commodity dealers......................... 1,787 1,963 1,982 1,950 1,895 227 -68 19 -32 -55 11 Other wholesale.............................. 9,520 9,436 10,157 10,401 10,967 277 1,531 721 244 566 12 Retail............................................... 9,057 8,565 8,997 9,182 9,616 312 1,051 432 185 434 13 Transportation, communication, and other public utilities................... 12,892 13,411 13,543 13,836 13,986 1,086 575 132 293 150 14 Transportation................................ 5,649 5,641 5,798 6,028 6,199 74 558 157 230 171 15 Communication............................... 1,756 1,797 1,753 1,832 1,847 83 50 -44 79 15 16 Other public utilities....................... 5,487 5,973 5,991 5,977 5,940 930 -33 18 -14 -37 17 Construction....................................... 5,156 5,207 5,113 5,071 5,401 -25 194 -94 -42 330 18 Services................................................ 14,432 14,957 15,478 15,609 15,910 982 953 521 131 301 19 All other1............................................ 17,995 16,908 15,592 15,722 14,553 -409 -2,355 -1,316 130 -1,169 20 Total domestic loans.......................... 115,434 116,319 115,161 117,390 119,408 3,229 3,089 -1,158 2,229 2,018 21 Memo: Term loans (original maturity more than 1 year) included in domestic loans............................. 55,107 55,273 57,709 58,666 59,975 1,718 4,702 2,436 957 1,309 1 Includes commercial and industrial loans at a few banks with assets with domestic assets of $1 billion or more as of December 31, 1977 are of $ 1 billion or more that do not classify their loans. included in this series. The revised series is on a last-Wednesday-of-themonth basis. Note. New series. The 134 large weekly reporting commercial banks 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 Type of holder 1977 1978 1974 1975 1976 Dec. Dec. Dec. June Sept. Dec. Mar. June Sept. Dec. 1 All holders, individuals, partnerships, and 225.0 236.9 250.1 253.8 252.7 274.4 262.5 271.2 278.8 294.6 19.0 20.1 22.3 25.9 23.7 25.0 24.5 25.7 25.9 27.8 3 Nonfinancial business....... 118.8 125.1 130.2 129.2 128.5 142.9 131.5 137.7 142.5 152.7 73.3 78.0 82.6 84.1 86.2 91.0 91.8 92.9 95.0 97.4 2.3 2.4 2.7 2.5 2.5 2.5 2.4 2.4 2.5 2.7 11.7 11.3 12.4 12.2 11.8 12.9 12.3 12.4 13.1 14.1 At weekly reporting banks 1978 1975 1976 1977 Dec. Dec. Dec. June July Aug. Sept. Oct. Nov. Dec. 7 All holders, individuals, partnerships, and corporations................ 124.4 128.5 139.1 136.9 139.9 137.7 139.7 141.3 142.7 147.0 8 Financial business............. 15.6 17.5 18.5 19.0 19.4 19.4 18.9 19.1 19.3 19.8 9 Nonfinancial business........ 69.9 69.7 76.3 71.9 73.7 72.0 74.1 75.0 75.7 79.0 29.9 31.7 34.6 36.6 37.1 36.8 37.1 37.5 37.7 38.2 11 Foreign............................... 2.3 2.6 2.4 2.3 2.3 2.4 2.4 2.5 2.5 2.5 12 Other................................... 6.6 7.1 7.4 7.1 7.3 7.1 7.3 7.2 7.5 7.5 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 1979 1975 1976 1977 Instrument Dec. Dec. Dec. J Aug. Sept. Oct. Nov. Dec. Jan. Feb. Commercial paper (seasonally adjusted) 1All issuers................................................................ 48,471 52,971 65,101 74,135 77,021 77,734 80,679 83,665 85,226 87,358 Financial companies:1 Dealer-placed paper:2 2 Total................................................................ 6,212 7,261 8,884 10,864 11,429 10,949 11,487 12,296 12,915 13,419 3 Bank-related.................................................... 1,762 1,900 2,132 2,935 2,622 2,868 3,231 3,521 4,413 3,969 Directly-placed paper:3 4 Total................................................................ 31,404 32,511 40,484 45,828 47,760 48,460 50,093 51,630 52,880 54,586 5 Bank-related.................................................... 6,892 5,959 7,102 9,634 10,383 10,925 11,478 12,314 12,191 12,166 6 Nonfinancial companies4...................................... 10,855 13,199 15,733 17,443 17,832 18,325 19,099 19,739 19,431 19,353 Dollar acceptances (not seasonally adjusted) 7 Total........................................................................ 18,727 22,523 25,450 28,319 27,952 30,579 32,145 33,700 33,749 34,337 Held by: 8 Accepting banks.................................................. 7,355 10,442 10,434 7,048 7,647 8,379 8,082 8,579 7,339 7,715 9 Own bills......................................................... 5,899 8,769 8,915 6,131 6,461 7,012 6,840 7,653 6,214 6,708 10 Bills bought.................................................... 1,435 1,673 1,519 917 1,186 1,366 1,243 927 1,125 1,007 Federal Reserve Banks: 11 Own account................................................. 1,126 991 954 1 1 12 Foreign correspondents................................. ’293 375 362 633 556 557 585 664 765 750 13 Others.................................................................. 9,975 10,715 13,904 20,638 19,748 21,644 23,478 24,456 25,646 25,829 Based on: 14 Imports into United States............................... 3,726 4,992 6,378 7,885 7,957 8,575 8,675 8,574 8,869 9,114 15 Exports from United States............................... 4,001 4,818 5,863 6,558 6,350 6,665 7,224 7,586 7,762 7,858 16 All other.............................................................. 11,000 12,713 13,209 13,876 13,644 15,339 16,245 17,540 17,118 17,365 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 Financial Statistics □ April 1979 1.34 PRIME RATE CHARGED BY BANKS on Short-term Business Loans Percent per annum Month Average Month Average Effective date Rate Effective date Rate rate rate 1978—Jan. 10............ 8 1978—Sept. 15........... 9 Vi 1977—June..................... 6.75 1978—May................. 8.27 28........... m July...................... 6.75 June..................... 8.63 May 5........... 9.00 9.01 9.41 9.94 10.94 11.55 00 00 Aug...................... 6.83 July...................... 26........... Oct. 13........... 10 Sept...................... 7.13 Aug .......... 27........... W a Oct....................... 7.52 Sept...................... June 16........... SV4 Nov...................... 7.75 Oct....................... 30........... 9 Nov. 1........... 10*4 Dec....................... 7.75 Nov.................... 6........... 10 ft Dec. Aug. 31............ 9Va 17........... 11 1978—Jan....................... 7.93 24........... 11% Feb....................... 8.00 1979—jan....................... 11.75 Mar...................... 8.00 Feb....................... 11.75 Dec. 26........... 11% Apr...................... 8.00 Mar...................... 11.75 1.35 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 5-10, 1979 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)......... 6,849,553 764,236 572,350 582,423 1,571,248 639,108 2,720,187 2 Number of loans............................................... 144,174 106,536 17,073 9,420 8,982 1,025 1,137 3 Weighted-average maturity (months).............. 3.2 3.3 3.3 3.7 3.3 3.3 2.8 4 Weighted-average interest rate (percent per annum)....................................................... 12.27 12.14 12.01 12.83 12.55 12.63 11.99 5 Interquartile range i...................................... 11.51-13.10 10.47-13.52 10.75-13.25 11.75-14.20 11.89-13.37 12.00-13.28 11.50-12.45 Percent of amount of loans: 6 With floating rate.......................................... 50.1 29.0 39.6 36.8 45.9 56.9 61.8 7 Made under commitment............................. 46.4 20.3 24.1 37.5 47.6 55.3 57.5 Long-term commercial and industrial loans ---------------✓ 8 Amount of loans (thousands of dollars)......... 1,081,529 242,097 205,214 96,688 537,530 9 Number of loans............................................... 16,416 14,943 1,111 154 207 10 Weighted-average maturity (months).............. 47.6 36.7 51.0 57.2 49.6 11 Weighted-average interest rate (percent per annum)....................................................... 12.01 11.83 12.25 11.93 12.02 12 Interquartile range1...................................... 11.50-13.15 10.47-13.16 11.57-13.15 11.75-12.50 11.50-13.25 Percentage of amount of loans: 13 With floating rate.......................................... 61.7 25.8 52.5 71.4 79.6 14 Made under commitment............................. 55.4 29.3 41.9 61.0 71.2 Construction and land development loans 15 Amount of loans (thousands of dollars)......... 591,415 94,199 63,486 93,408 122,193 218,129 16 Number of loans............................................... 15,222 11,013 1,918 1,520 639 133 17 Weighted-average maturity (months)............... 7.8 8.4 5.4 2.8 7.8 10.4 18 Weighted-average interest rate (percent per annum)....................................................... 11.79 11.22 12.15 12.00 12.43 11.48 19 Interquartile range1...................................... 10.21-13.37 10.00-12.55 10.16-13.69 10.50-12.68 11.05-13.75 9.95-13.00 Percentage of amount of loans: 20 With floating rate.......................................... 44.2 22.6 24.8 20.2 53.8 64.1 21 Secured by real estate.................................... 92.4 84.1 92.9 97.4 93.8 92.9 22 Made under commitment............................. 59.3 49.1 48.1 71.7 56.3 63.2 23 Type of construction: 1- to 4-family............ 40.9 62.0 80.1 82.3 38.4 4.1 24 Multifamily............... 15.8 2.9 3.3 4.0 16.7 29.6 25 Nonresidential.......... 43.2 35.2 16.5 13.7 44.9 66.2 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).......... 968,124 154,312 159,679 154,817 166,626 137,522 195,168 27 Number of loans................................................ 62,545 43,081 11,189 4,553 2,411 996 315 28 Weighted-average maturity (months)............... 7.8 8.4 10.7 8.0 8.0 6.1 5.1 29 Weighted-average interest rate (percent per annum)....................................................... 11.01 10.34 10.40 10.37 10.69 11.69 12.33 30 Interquartile range1....................................... 10.00-11.83 9.50-11.00 9.73-11.00 9.61-11.00 10.00-11.00 11.00-12.49 11.00-13.50 By purpose of loan: 31 Feeder livestock......................................... 11.10 10.35 10.18 10.54 10.60 11.33 12.86 32 Other livestock.......................................... 11.23 10.47 10.87 10.53 10.71 (2) (2) 33 Other current operating expenses............. 10.88 10.31 10.42 10.33 10.78 11.65 12.07 34 Farm machinery and equipment.............. 10.28 10.23 10.25 10.10 (2) (2) (2) 35 Other........................................................... 11.23 10.42 10.83 10.28 10.66 12.61 11.81 1 Interest rate range that covers the middle 50 percent of the total 2 Fewer than 10 sample loans, dollar amount of loans made. Note. For more detail, see the board’s 416 statistical release. 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 1979 1979,week ending— Instrument 1976 1977 1978 Dec. Jan. Feb. Mar. Mar. 3 Mar. 10Mar. 17Mar. 24Mar. 31 Money market rates 1 Federal funds1.............................................. 5.05 5.54 7.94 10.03 10.07 10.06 10.09 10.06 10.07 10.21 10.09 10.00 Prime commercial paper2*3 2 90-to 119-day........................................... 5.24 5.54 7.94 10.37 10.25 9.95 9.90 9.96 9.95 9.98 9.90 9.76 3 4- to 6-month........................................... 5.35 5.60 7.99 10.43 10.32 10.01 9.96 10.03 10.01 10.03 9.95 9.81 4 Finance company paper, directly placed, 3- to 6-month3-4................................... 5.22 5.49 7.78 10.06 10.10 9.85 9.73 9.84 9.84 9.85 9.70 9.51 5 Prime bankers acceptances, 90-day3-5....... 5.19 5.59 8.11 10.55 10.29 10.01 9.94 10.03 9.97 10.00 9.97 9.82 Large negotiable certificates of deposit 6 3-month, secondary market6................... 5.26 5.58 8.20 10.72 10.51 10.18 10.13 10.14 10.16 10.20 10.09 9.99 7 Eurodollar deposits, 3-month7.................. 5.57 6.05 8.74 11.62 11.16 10.79 10.64 10.61 10.64 10.74 10.63 10.54 U.S. government securities Bills:3-8 Market yields: 8 3-month............................................ 4.98 5.27 7.19 9.08 9.35 9.32 9.48 9.44 9.44 9.51 9.54 9.46 9 6-month............................................ 5.26 5.53 7.58 9.36 9.47 9.41 9.47 9.50 9.45 9.51 9.47 9.43 10 1-year................................................ 5.52 5.71 7.74 9.44 9.54 9.39 9.38 9.50 9.40 9.43 9.37 9.29 Rates on new issue:9 11 3-month............................................ 4.989 5.265 7.221 9.122 9.351 9.265 9.457 9.451 9.364 9.475 9.498 9.498 5.266 5.510 7.572 9.397 9.501 9.349 9.458 9.498 9.415 9.457 9.483 9.437 Capital market rates Government notes and bonds U.S. Treasury Constant maturities:10 13 1-year......................... 5.8 6.09 8.34 10.30 10.41 10.24 10.25 10.36 10.30 10.31 10.22 10.11 14 2-year......................... 6.45 8.34 9.72 9.86 9.72 9.79 9.89 9.80 9.82 9.79 9.72 15 3-year......................... 6.77 6.69 8.29 9.33 9.50 9.29 9.38 9.45 9.39 9.39 9.38 9.33 16 5-year......................... 7.18 6.99 8.32 9.08 9.20 9.13 9.20 9.28 9.20 9.20 9.21 9.18 17 7-year......................... 7.42 7.23 8.36 9.03 9.14 9.11 9.15 9.22 9.13 9.16 9.15 9.13 18 10-year....................... 7.61 7.42 8.41 9.01 9.10 9.10 9.12 9.18 9.11 9.12 9.12 9.09 19 20-year....................... 7.86 7.67 8.48 8.90 8.98 9.03 9.08 9.12 9.08 9.07 9.08 9.05 20 30-year....................... 8.49 8.94 9.00 9.03 9.08 9.03 9.03 9.03 9.01 Notes and bonds maturing in—11 21 3 to 5 years................................. 6.94 6.85 8.30 9.23 9.36 9.16 9.25 9.32 9.24 9.24 9.24 9.23 22 Over 10 years (long-term).......... 6.78 7.06 7.89 8.36 8.43 8.43 8.45 8.49 8.45 8.45 8.45 8.43 State and local: Moody’s series12 23 Aaa................... 5.66 5.20 5.52 5.91 5.95 5.66 5.82 5.80 5.80 5.80 5.80 5.90 24 Baa..................... 7.49 6.12 6.27 6.76 7.14 6.75 6.41 6.40 6.30 6.40 6.55 6.40 25 Bond Buyer series1 6.64 5.68 6.03 6.51 6.47 6.31 6.33 6.42 6.35 6.30 6.29 6.28 Corporate bonds Seasoned issues14 All industries....... 9.01 8.43 9.07 9.49 9.65 9.63 9.76 9.73 9.75 9.76 9.78 9.77 By rating groups: Aaa................... 8.43 8.02 8.73 9.16 9.25 9.26 9.37 9.36 9.35 9.38 9.38 9.35 Aa..................... 8.75 8.24 8.92 9.33 9.48 9.50 9.61 9.59 9.61 9.61 9.62 9.61 A....................... 9.09 8.49 9.12 9.53 9.72 9.68 9.81 9.74 9.79 9.81 9.83 9.84 Baa................... 9.75 8.97 9.45 9.94 10.13 10.08 10.26 10.21 10.23 10.24 10.28 10.28 Aaa utility bonds:15 31 New issue..................... 8.48 8.19 8.96 9.28 9.54 9.53 9.62 9.64 9.61 9.64 9.60 32 Recently offered issues. 8.49 8.19 8.97 9.41 9.51 9.56 9.63 9.67 9.60 9.65 9.63 9.62 Dividend/price ratio 33 Preferred stocks. 7.97 7.60 8.25 8.84 8.79 8.77 8.77 8.78 8.81 8.73 8.73 8.78 34 Common stocks. 3.77 4.56 5.28 5.39 5.29 5.43 5.39 5.55 5.44 5.38 5.32 5.28 1 Weekly figures are 7-day averages of daily effective rates for the week 9 Rates are recorded in the week in which bills are issued. ending Wednesday; the daily effective rate is an average of the rates on 10 Yields on the more actively traded issues adjusted to constant a given day weighted by the volume of transactions at these rates. maturities by the U.S. Treasury, based on daily closing bid prices. 2 Beginning Nov. 1977, unweighted average of offering rates quoted 11 Unweighted averages for all outstanding notes and bonds in maturity by five dealers. Previously, most representative rate quoted by those ranges shown, based on daily closing bid prices. “Long-term” includes dealers. all bonds neither due nor callable in less than 10 years, including a num­ 3 Yields are quoted on a bank-discount basis. ber of very low yielding “flower” bonds. 4 Averages of the most representative daily offering rates published by 12 General obligations only, based on figures for Thursday, from finance companies for varying maturities in this range. Moody’s Investors Service. 5 Average of the midpoint of the range of daily dealer closing rates 13 Twenty issues of mixed quality. offered for domestic issues. 14 Averages of daily figures from Moody’s Investors Service. 6 Weekly figures (week ending Wednesday) are 7-day averages of the 15 Compilation of the Board of Governors of the Federal Reserve daily midpoints as determined from the range of offering rates; monthly System. figures are averages of total days in the month. Beginning Apr. 5, 1978, Issues included are long-term (20 years or more). New-issue yields weekly figures are simple averages of offering rates. are based on quotations on date of offering; those on recently offered 7 Averages of daily quotations for the week ending Wednesday. issues (included only for first 4 weeks after termination of underwriter 8 Except for new bill issues, yields are computed from daily closing price restrictions), on Friday close-of-business quotations. bid prices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Financial Statistics □ April 1979 1.37 STOCK MARKET Selected Statistics 1978 1979 Indicator 1976 1977 1978 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Prices and trading (averages of daily figures) Common stock prices 1New York Stock Exchange (Dec. 31,1965 == 50). 54.45 53.67 53.76 58.58 56.40 52.74 53.69 55.76 55.06 56.18 2 60.44 57.84 58.30 64.23 61.60 57.50 58.72 61.31 60.42 61.89 3 39.57 41.07 43.25 50.19 46.70 41.80 42.49 43.69 42.27 43.22 4 Utility...................................................... 36.97 40.91 39.23 39.82 39.44 37.88 38.09 38.79 39.22 38.94 5 52.94 55.23 56.74 63.22 60.42 54.95 55.73 57.59 56.09 57.65 6 Standard & Poor’s Corporation (1941-43 =10)1.. 102.01 98.18 96.11 103.86 100.58 94.71 96.10 99.70 98.23 100.11 7 American Stock Exchange (Aug. 31,1973 = 100). 101.63 116.18 144.56 170.95 160.14 144.17 149.94 159.26 160.92 171.51 Volume of trading (thousands of shares) 8 New York Stock Exchange................... 21,189 20,936 28,591 33,612 31,020 24,505 24,622 27.988 25,037 29,536 9 American Stock Exchange.................... 2,565 2,514 3,922 5,740 4,544 3,304 3,430 3.150 2,944 4,105 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers/dealers2........ 8,166 9,993 11,035 12,626 12,307 11,209 11,035 10,955 10,989 11 Margin stock3.................................................... 7,960 9,740 10,830 12,400 12,090 11,000 10,830 10,750 10,790 12 Convertible bonds............................................. 204 250 205 225 216 209 205 204 195 1 13 Subscription issues...................................... 2 3 1 1 1 1 1 4 Memo: Free credit balances at brokers4 14 Margin-account................................................. 585 640 835 825 885 790 835 810 775 15 Cash-account..................................................... 1,855 2,060 2,510 2,655 2,465 2,305 2,510 2,565 2,430 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 percent):5 17 Under 40............................................................. 12.0 18.0 33.0 15.0 47.0 32.0 33.0 21.0 29.0 18 40-49.............................................................. 23.0 36.0 28.0 36.0 20.0 27.0 28.0 32.0 31.0 n.a. 19 50-59.............................................................. 35.0 23.0 18.0 23.0 15.0 20.0 18.0 22.0 18.0 20 60-69.............................................................. 15.0 11.0 10.0 13.0 8.0 10.0 10.0 12.0 11.0 21 70-79.............................................................. 8.7 6.0 6.0 7.0 5.0 6.0 6.0 7.0 6.0 22 80 or more......................................................... 6.0 5.0 5.0 6.0 5.0 5.0 5.0 6.0 5.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6.. 8,776 9,910 Distribution by equity status (percent) 24 Net credit status............................... 41.3 43.4 Debit status, equity of— 25 60 percent or more...................... 47.8 44.9 26 Less than 60 percent................... 10.9 11.7 Margin requirements (percent of market value)7 Effective date Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 27 Margin stocks 70 80 65 55 65 50 28 Convertible bonds 50 60 50 50 50 50 29 Short sales........... 70 80 65 55 65 50 1 Effective July 1976, includes a new financial group, banks and in­ 5 Each customer’s equity in his collateral (market value of collateral surance companies. With this change the index includes 400 industrial less net debit balance) is expressed as a percentage of current collateral stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public values. utility (formerly 60), and 40 financial. 6 Balances that may be used by customers as the margin deposit re­ 2 Margin credit includes all credit extended to purchase or carry quired for additional purchases. Balances may arise as transfers based stocks or related equity instruments and secured at least in part by stock. on loan values of other collateral in the customer’s margin account or Credit extended is end-of-month data for member firms of the New York deposits of cash (usually sales proceeds) occur. Stock Exchange. 7 Regulations G, T, and U of the Federal Reserve Board of Governors, In addition to assigning a current loan value to margin stock generally, prescribed in accordance with the Securities Exchange Act or 1934, Regulations T and U permit special loan values for convertible bonds limit the amount of credit to purchase and carry margin stocks that may and stock acquired through exercise of subscription rights. be extended on securities as collateral by prescribing a maximum loan 3 A distribution of this total by equity class is shown on lines 17-22. value, which is a specified percentage of the market value of the collateral 4 Free credit balances are in accounts with no unfulfilled commitments at the time the credit is extended. Margin requirements are the difference to the brokers and are subject to withdrawal by customers on demand. between the market value (100 percent) and the maximum loan value. The term “margin stocks” is defined in the corresponding regulation. 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 1979 1975 1976 1977 Account June July Aug. Sept. Oct. Nov. Dec. Jan. Feb p Savings and loan associations9 1 Assets..................................... 338,233 391,907 459,241 491,576 498,301 504,298 508,977 515,352 520,677523,649 529,820 534,180 2 Mortgages............................. 278,590 323,005 381,163 407,965 411,956 416,677 420,971 425,236 429,420432,858 435,460 437,924 3 Cash and investment securities1........................... 30,853 35,724 39,150 41,505 43,627 44,188 43,987 45,577 45,869 44,855 47,653 49,003 28,790 33,178 38,928 42,106 42,718 43,433 44,019 44,539 45,388 45,936 46,707 47,253 5 Liabilities and net worth........ 338,233 391,907 459,241 491,576 498,301 504,298 508,977 515,352 520,677523,649 529,820 534,180 285,743 335,912 386,800 408,586 411,660 413,972 420,405 423,050 425,207431,009 435,752 438,626 20,634 19,083 27,840 34,270 35,730 37,219 38,595 39,873 r40,981 42,960 42,368 41,381 8 FHLBB.............................. 17,524 15,708 19,945 24,875 26,151 27,363 28,632 29,456 r30,322 31,990 31,758 30,997 3,110 3,375 7,895 9,395 9,579 9,856 9,963 10,417 10,659 10,970 10,610 10,384 10 Loans in process................... 5,128 6,840 9,911 11,632 11.540 11,422 11,222 11,165 11,315 10,737 10,445 10,295 11 Other...................................... 6,949 8,074 9,506 10,046 11,972 13,906 10,676 12,832 14,666 9,918 11,971 14,243 19,779 21,998 25,184 27,042 27,399 27,779 28,079 28,432 28,808 29,025 29,284 29,635 13 Memo: Mortgage loan com­ mitments outstanding3.. 10,673 14,826 19,875 22,927 22,393 22,047 21,648 21,503 20,738 '18,911 18,174 18,174 Mutual savings banks10 14 Assets..................................... 121,056 134,812 147,287 153,175 154,315 155,210 156,110 156,843 157,436158,185 158,910 Loans: 77,221 81,630 88,195 91,555 92,230 92,866 93,403 93,903 94,497 95,205 95,582 16 Other.................................. 4,023 5,183 6,210 7,771 8,207 8,379 8,418 8,272 7,921 7,176 7,729 Securities: 17 U.S. government.............. 4,740 5,840 5,895 5,304 5,269 5,210 5,172 5,105 5,035 4,950 4,811 18 State and local government. 1,545 2,417 2,828 3,008 3,025 3,098 3,180 3,190 3,307 3,335 3,328 19 Corporate and other4....... 27,992 33,793 37,918 39,427 39,639 39,592 39,639 39,651 39,679 39,759 40,044 2,330 2,355 2,401 2,163 2,029 2,080 2,293 2,735 3,033 3,730 3,332 21 Other assets........................... 3,205 3,593 3,839 3,946 3,915 3,985 4,006 3,988 3,962 4,031 4,085 22 Liabilities............................... 121,056 134,812 147,287 153,175 154,315 155,210 156,110 156,843 157,436158,185 158,910 n.a. 23 Deposits................................. 109,873 122,877 134,017 138,709 139,128 139,308 140,816 141,026 141,155142,629 142,854 24 Regular^........................... 109,291 121,961 132,744 137,089 137,430 137,690 139,068 139,422 139,853 141,089 141,355 25 Ordinary savings............ 69,653 74,535 78,005 77,321 76,116 75,578 75,423 74,124 72,398 71,702 70,540 26 Time and other.............. 39,639 47,426 54,739 59,768 61,313 62,112 63,645 65,298 67,299 69,387 70,815 27 Other.................................. 582 916 1,272 1,620 1,698 1,619 1,747 1,604 1,458 1,540 1,499 28 Other liabilities..................... 2,755 2,884 3,292 3,969 4,636 5,246 4,570 5,040 5,411 4,666 5,090 29 General reserve accounts.... 8,428 9,052 9,978 10,497 10,551 10,654 10,725 10,777 10,870 10,891 10,967 30 Memo : Mortgage loan com­ mitments outstanding6.. 1,803 2,439 4,066 4,958 4,872 4,789 4,561 4,843 4,823 4,400 4,366 Life insurance companies11 289,304 321,552 351,722 369,879 374,415 378,124 381,050 382,446 385,562389,021 393,402 Securities: 13,758 17,942 19,553 19,401 19,447 19,563 19,638 19,757 19,711 19,579 19,829 33 United States7............... 4,736 5,368 5,315 4,984 5,006 5,155 5,156 5,183 4,934 4,795 5,049 34 State and local............... 4,508 5,594 6,051 5,943 5,925 5,884 6,001 6,035 6,235 6,250 6,236 35 Foreign*......................... 4,514 6,980 8,187 8,474 8,516 8,524 8,481 8,539 8,542 8,534 8,544 135,317 157,246 175,654 188,500 192,112 194,620 196,152 195,883 197,615 197,342 201,061 n.a. 107,256 122,984 141,891 153,812 156,207 157,888 159,972 161,347 162,835 161,923 165,552 28,061 34,262 33,763 34,688 35,905 36,732 36,180 34,536 34,780 35,419 35,509 89,167 91,552 96,848 100,040 100,596 101,602 102,365 103,161 104,106105,932 106,397 40 Real estate............................. 9,621 10,476 11,060 11,540 11,562 11,538 11,583 11,693 11,707 11,776 11,841 24,467 25,834 27,556 28,649 28,843 29,067 29,290 29,521 29,818 30,202 30,506 42 Other assets........................... 16,971 18,502 21,051 21,749 21,855 21,734 22,022 22,431 22,605 24,190 23,768 Credit unions 43 Total assets/liabilities and 38,037 45,225 54,084 59,381 59,152 60,141 6i, in 60,909 61,465 62,595 61,756 20,209 24,396 29,574 32,793 32,679 33,315 34,058 33,718 34,093 34,681 34,165 17,828 20,829 24,510 26,588 26,473 26,826 27,219 27,191 27,372 27,914 27,591 46 Loans outstanding................. 28,169 34,384 42,055 47,118 47,620 49,103 50,121 50,549 51,264 51,807 51,526 14,869 18,311 22,717 25,762 25,970 26,840 27,510 27,697 28,176 28,583 28,340 n.a. 13,300 16,073 19,338 21,356 21,650 22,263 22,611 22,852 23,088 23,224 23,186 33,013 39,173 46,832 52,076 51,551 51,772 52,867 52,468 52,600 53,048 51,916 50 Federal (shares)................. 17,530 21,130 25,849 28,903 28,627 28,779 29,429 29,086 29,163 29,326 28,427 51 State (shares and deposits). 15,483 18,043 20,983 23,173 22,924 22,993 23,438 23,382 23,437 23,722 23,489 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Financial Statistics □ April 1979 1.39 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Transition quarter Fiscal Fiscal Type of account or operation (July- year year 1977 1978 1978 1979 Sept. 1977 1978 1976) H2 HI H2 Dec. Jan. Feb. U.S. budget 1 Receipts1.......................................... 81,772 357,762 401,997 175,820 210,650 206,275 37,477 38,364 32,639 2 Outlays1............................................ 94,729 402,725 450,836 216,781 222,518 238,150 41,392 41,095 37,739 3 Surplus, or deficit (—).................. -12,956 -44,963 -48,839 -40,961 -11,870 -31,875 -3,915 -2,731 -5,100 4 Trust funds................................... -1,952 7,833 12,693 4,293 4,334 11,755 1,833 -3,971 2,188 -11,004 -52,796 -61,532 -45,254 -16,204 -43,630 -5,748 1,240 -7,288 Off-budget entities surplus, or deficit ( —) 6 Federal Financing Bank outlays... -2,564 -8,201 -10,614 -6,663 -5,105 -5,082 -1,178 -693 -995 7 Other3............................................... 779 -483 287 428 -790 1,841 453 -272 62 U.S. budget plus off-budget, in­ cluding Federal Financing Bank 8 Surplus, or deficit (—)..................... -14,741 -53,647 -59,166 -47,196 -17,765 -35,117 -4,640 -3,696 -6,033 Financed by: 9 Borrowing from the public.......... 18,027 53,516 59,106 40,284 23,374 30,308 3,533 3,312 -668 10 Cash and monetary assets (de­ crease, or increase (—))........ -2,899 -2,238 -3,023 4,317 -5,098 3,381 -2,323 -227 8,179 11 Other 4.......................................... -387 2,369 3,083 2,597 -511 1,428 3,430 611 -1,478 Memo items : 12 Treasury operating balance (level, end of period)...................................... 17,418 19,104 22,444 12,274 17,526 16,291 16,291 15,146 6,887 13 Federal Reserve Banks.................... 13,299 15,740 16,647 7,114 11,614 4,196 4,196 3,522 3,443 14 Tax and loan accounts.................... 4,119 3,364 5,797 5,160 5,912 12,095 12,095 11,624 3,444 1 Effective June 1978, earned income credit payments in excess of cellaneous liability (including checks outstanding) and asset accounts; an individual’s tax liability, formerly treated as income tax refunds, are seignorage; increment on gold; net gain/loss for U.S. currency valuation classified as outlays retroactive to January 1976,. adjustment; net gain/loss for IMF valuation adjustment; and profit on 2 Half years calculated as a residual of total surplus/deficit and trust the sale of gold. 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; and Rural Telephone the U.S. Government,” Treasury Bulletin, and the Budget of the United Bank. States Government, Fiscal Year 1980. 4 Includes accured interest payable to the public; deposit funds; mis­ 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 percent 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 1978 1979 Sept. 1977 1978 1976) H2 HI Jan. Feb. Receipts 1All sources1.......................................... 81,772 357,762 401,997 175,820 210,650 206,275 37,477 38,364 32,639 2 Individual income taxes, net................ 38,800 157,626 180,988 82,911 90,336 98,854 16,066 23,667 14,509 3 Withheld......................................... 32,949 144,820 165,215 75,480 82,784 90,148 15,454 15,843 16,292 4 Presidential Election Campaign Fund....................................... 1 37 39 1 36 3 5 5 Nonwithheld................................... 6,809 42,062 47,804 9,397 37,584 10,777 830 7,866 1,037 6 Refunds1......................................... 958 29,293 32,070 1,967 30,068 2,075 219 42 2,825 7 Corporation income taxes 8 Gross receipts................................. 9,808 60,057 65,380 25,121 38,496 28,536 10,769 2,539 1,706 9 Refunds........................................... 1,348 5,164 5,428 2,819 2,782 2,757 382 392 424 10 Social insurance taxes and contribu­ tions, net..................................... 25,760 108,683 123,410 52,347 66,191 61,064 7,716 9,429 13,614 11 Payroll employment taxes and contributions 2........................ 21,534 88,196 99,626 44,384 51,668 51,052 7,059 8,098 11,528 12 Self-employment taxes and contributions 3....................... 269 4,014 A,261 316 3,892 369 341 322 13 Unemployment insurance.............. 2,698 11,312 13,850 4,936 7,800 6,727 174 478 1,286 14 Other net receipts 4....................... 1,259 5,162 5,668 2,711 2,831 2,917 483 512 478 15 Excise taxes......................................... 4,473 17,548 18,376 9,284 8,835 9,879 1,597 1,520 1,436 16 Customs deposits.............................. 1,212 5,150 6,573 2,848 3,320 3,748 594 630 527 17 Estate and gift taxes......................... 1,455 7,327 5,285 2,837 2,587 2,691 386 485 426 18 Miscellaneous receipts 5.................... 1,612 6,536 7,413 3,292 3,667 4,260 732 486 846 Outlays 8 19 All types1........................................... 94,729 402,725 450,836 216,781 222,518 238,150 41,392 41,095 37,739 20 National defense.............................. 22,307 97,501 105,186 50,873 52,979 55,129 9,450 9,304 8,803 21 International affairs......................... 2,197 4,813 5,922 2,896 2,904 2,221 339 550 460 22 General science, space, and technology................................. 1,161 4,677 4,742 2,318 2,395 2,362 407 421 422 23 Energy.............................................. 794 4,172 5,861 2,487 4,461 747 622 904 24 Natural resources and environment 2,532 10,000 10,925 4,959 6,119 1,125 953 1,030 25 Agriculture....................................... 581 5,532 7,731 "5 All 2,353 4,854 1,681 1,755 762 26 Commerce and housing credit........ 1,392 -44 3,325 -946 3,291 309 109 -553 27 Transportation................................. 3,304 14,636 15,444 7,723 8,758 1,374 1,419 1,095 28 Community and regional development............................. 1,340 6,286 11,000 4,924 5,928 6,108 753 800 625 29 Education, training, employment, and social services................... 5,162 20,985 26,463 10,800 12,792 13,676 2,210 2,467 2,075 JO Health................................................ 8,721 38,785 43,676 19,422 21,391 23,942 4,717 4,149 3,894 31 Income security1.............................. 32,797 137,915 146,212 71,081 75,201 73,305 12,469 12,959 13,300 J2 Veterans benefits and services........... 3,962 18,038 18,974 9,864 9,603 9,545 2,650 757 1,622 53 Administration of justice................. 859 3,600 3,802 1,723 1,946 1,973 309 341 352 J4 General government......................... 883 3,374 3,777 1,749 1,803 2,111 269 392 300 55 General-purpose fiscal assistance..., 2,092 9,499 9,601 4,926 4,665 4,385 79 1,754 81 56 Interest 6.......................................... 7,216 38,009 43,966 19,962 22,280 24,110 7,372 2,860 4,099 57 Undistributed offsetting receipts 6*7 -2,567 -15,053 -15,772 -8,506 -7,945 -8,200 -4,870 -516 -1,530 1 Effective June 1978, earned income credit payments in excess of an Receipts” reflect the accounting conversion for the interest on special individual’s tax liability, formerly treated as income tax refunds, are issues for U.S. government accounts from an accrual basis to a cash basis. classified as outlays retroactive to January 1976. 7 Consists of interest received by trust funds, rents and royalties on 2 Old-age, disability and hospital insurance, and railroad retirement the Outer Continental Shelf, and U.S. government contributions for accounts. employee retirement. 3 Old-age, disability, and hospital insurance. 8 For some types of outlays the categories are new or represent re­ 4 Supplementary medical insurance premiums, federal employee re­ groupings; data for these categories are from the Budget of the United tirement contributions, and Civil Service retirement and disability fund. States Government, Fiscal Year 1980; data are not available for half-years 5 Deposits of earnings by Federal Reserve Banks and other miscel­ prior to 1978. laneous receipts. In addition, for some categories the table includes revisions in figures 6 Effective September 1976, “Interest” and “Undistributed Offsetting published earlier. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Financial Statistics □ April 1979 1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1976 1977 1978 Item Sept. 30 Dec. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 1 Federal debt outstanding..................... 2 646.4 665.5 685.2 709.1 729.2 747.8 758.8 780.4 797.7 2 Public debt securities........................... 634.7 653.5 674.4 698.8 718.9 738.0 749.0 771.5 789.2 3 Held by public................................. 488.6 506.4 523.2 543.4 564.1 585.2 587.9 603.6 619.2 4 Held by agencies.............................. 146.1 147.1 151.2 155.5 154.8 152.7 161.1 168.0 170.0 5 Agency securities.................................. 11.6 12.0 10.8 10.3 10.2 9.9 9.8 8.9 8.5 6 Held by public................................. 29.7 10.0 9.0 8.5 8.4 8.1 8.0 7.4 7.0 1.9 1.9 1.8 1.8 1.8 1.8 1.8 1.5 1.5 8 Debt subject to statutory limit............. 635.8 654.7 675.6 700.0 720.1 739.1 750.2 772.7 790.3 9 Public debt securities........................... 634.1 652.9 673.8 698.2 718.3 737.3 748.4 770.9 788.6 10 Other debt1.......................................... 1.7 1.7 1.7 1.7 1.7 1.8 1.8 1.8 1.7 11 Memo: Statutory debt limit................ 636.0 682.0 700.0 700.0 752.0 752.0 752.0 798.0 798.0 1 Includes guaranteed debt of government agencies, specified participa­ $0.5 billion due to a retroactive reclassification of the Export-import Bank tion certificates, notes to international lending organizations, and District certificates of beneficial interest from loan asset sales to debt, effective of 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 Department). 1.42 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1978 1979 Type and holder 1974 1975 1976 1977 Nov. Dec. Jan. Feb. Mar. 492.7 576.6 653.5 718.9 783.0 789.2 790.5 792.2 796.8 By type 491.6 575.7 652.5 715.2 782.0 782.4 789.5 791.2 792.3 282.9 363.2 421.3 459.9 493.3 487.5 496.5 498.0 500.4 4 Bills.................................................................... 119.7 157.5 164.0 161.1 161.5 161.7 162.3 162.4 165.5 129.8 167.1 216.7 251.8 271.7 265.8 272.8 271.4 270.8 33.4 38.6 40.6 47.0 60.1 60.0 61.4 64.2 64.1 208.7 212.5 231.2 255.3 288.7 294.8 293.0 293.3 8291.9 2.3 2.3 2.3 2.2 2.2 2.2 2.2 2.2 2.2 9 State and local government series................... .6 1.2 4.5 13.9 24.1 24.3 24.2 24.2 24.2 10 Foreign issues 3.................................................. 22.8 21.6 22.3 22.2 26.6 '29.6 '30.3 '28.2 28.2 11 Government............................................... 22.8 21.6 22.3 22.2 26.6 28.0 27.5 25.4 24.0 12 Public.......................................................... 0 0 0 0 0 1.6 2.8 2.8 4.2 13 Savings bonds and notes.................................. 63.8 67.9 72.3 77.0 80.7 80.9 80.8 iJO.8 80.8 119.1 119.4 129.7 139.8 154.8 157.5 155.2 157.6 153.8 15 Non-interest-bearing debt..................................... 1.1 1.0 1.1 3.7 1.0 6.8 1.0 1.0 4.4 By holder^ 16 U.S. government agencies and trust funds........ 138.2 139.1 147.1 154.8 167.4 170.0 167.7 80.5 89.8 97.0 102.5 113.3 109.6 101.3 271.0 349.4 409.5 461.3 502.3 508.6 521.4 55.6 85.1 103.8 101.4 93.5 93.4 95.0 20 Mutual savings banks....................................... 2.5 4.5 5.9 5.9 5.3 5.2 5.2 21 Insurance companies......................................... 6.2 9.5 12.7 15.1 15.1 15.0 15.1 22 Other corporations........................................... 11.0 20.2 27.7 22.7 20.9 20.6 22.5 n.a. n.a. 29.2 34.2 41.6 55.2 69.1 68.6 67.9 Individuals: 24 Savings bonds................................................ 63.4 67.3 72.0 76.7 80.5 80.7 80.6 21.5 24.0 28.8 28.6 29.8 30.0 30.4 58.8 66.5 78.1 109.6 132.4 137.8 142.2 27 Other miscellaneous investors7........................ 22.8 38.0 38.9 46.1 55.8 r57.4 62.5 1 Includes (not shown separately): Securities issued to the Rural 6 Consists of the investments of foreign balances and international Electrification Administration, depositary bonds, retirement plan bonds accounts in the United States. Beginning with July 1974, the figures exclude and individual retirement bonds. non-interest-bearing notes issued to the International Monetary Fund. 2 These nonmarketable bonds, also known as Investment Series B 7 Includes savings and loan associations, nonprofit institutions, cor­ Bonds, may be exchanged (or converted) at the owner’s option for 1 Vi porate pension trust funds, dealers and brokers, certain government percent, 5-year marketable Treasury notes. Convertible bonds that have deposit accounts, and government sponsored agencies. been so exchanged are removed from this category and recorded in the 8 Includes a nonmarketable Federal Reserve special certificate for $2.6 notes category above. billion. 3 Nonmarketable dollar-denominated and foreign currency denomin­ ated series held by foreigners. Note. Gross public debt excludes guaranteed agency securities and, 4 Held almost entirely by U.S. government agencies and trust funds. beginning in July 1974, includes Federal Financing Bank security issues. 5 Data for Federal Reserve Banks and U.S. government agencies and Data by type of security from Monthly Statement of the Public Debt of trust funds are actual holdings; data for other groups are Treasury the United States (U.S. Treasury Department); data by holder from estimates. Treasury Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A33 1.43 U.S. GOVERNMENT MARKETABLE SECURITIES Ownership, by maturity Par value; millions of dollars, end of period 1978 1979 1978 1979 Type of holder 1976 1977 1976 1977 Dec. Jan. Dec. Jan. All maturities 1 to 5 years 1 421,276 459,927 487,546 496,529 141,132 151,264 162,886 168,879 2 U.S. government agencies and trust funds........................... 16,485 14,420 12,695 12,694 6,141 4,788 3,310 3,310 3 Federal Reserve Banks........................................................... 96,971 101,191 109,616 101,279 31,249 27,012 31,283 31,577 4 307,820 344,315 365,235 382,556 103,742 119,464 128,293 133,992 5 78,262 75,363 68,890 67,445 40,005 38,691 38,390 38,191 6 4,072 4,379 3,499 3,457 2,010 2,112 1,918 1,905 7 10,284 12,378 11,635 11,838 3,885 4,729 4,664 4,764 8 14,193 9,474 8,272 8,700 2,618 3,183 3,635 3,667 9 4,576 4,817 3,835 3,983 2,360 2,368 2,255 2,279 10 12,252 15,495 18,815 18,418 2,543 3,875 3,997 3,906 11 184,182 222,409 250,288 268,716 50,321 64,505 73,433 79,281 Total, within 1 year 5 to 10 years 12 All holders................................................................................ 211,035 230,691 228,516 230,075 43,045 45,328 50,400 50,396 13 U.S. government agencies and trust funds........................... 2,012 1,906 1,488 1,488 2,879 2,129 1,989 1,989 51,569 56,702 52,801 44,310 9,148 10,404 14,809 14,717 15 157,454 172,084 174,227 184,211 31,018 32,795 33,601 33,690 16 31,213 29,477 20,608 19,284 6,278 6,162 7,490 7,508 17 1,214 1,400 817 778 567 584 496 496 18 2,191 2,398 1,838 1,856 2,546 3,204 2,899 2,962 19 Nonfinancial corporations.................................................. 11,009 5,770 4,048 4,385 370 307 369 345 20 1,984 2,236 1,414 1,537 155 143 89 90 21 6,622 7,917 8,194 7,801 1,465 1,283 1,588 1,605 22 All others............................................................................. 103,220 122,885 137,309 148,637 19,637 21,112 20,671 20,683 Bills, within 1 year 10 to 20 years 163,992 161,081 161,747 162,286 11,865 12,906 19,800 21,234 24 U.S. government agencies and trust funds.......................... 449 32 2 2 3,102 3,102 3,876 3,876 25 Federal Reserve Banks........................................................... 41,279 42,004 42,397 33,959 1,363 1,510 2,088 2,077 26 Private investors....................................................................... 122,264 119,035 119,348 138,325 7,400 8,295 13,836 15,282 27 Commercial banks.............................................................. 17,303 11,996 5,707 4,490 339 456 956 1,117 28 Mutual savings banks.......................................................... 454 484 150 123 139 137 143 153 29 Insurance companies........................................................... 1,463 1,187 753 770 1,114 1,245 1,460 1,478 30 Nonfinancial corporations.................................................. 9,939 4,329 1,792 2,123 142 133 86 159 31 1,266 806 262 303 64 54 60 61 32 State and local governments.............................................. 5,556 6,092 5,524 5,161 718 890 1,420 1,459 33 All others............................................................................. 86,282 94,152 105,161 115,354 4,884 5,380 9,711 10,855 Other, within 1 year Over 20 years 34 All holders................................................................................ 47,043 69,610 66,769 67,789 14,200 19,738 25,944 25,944 35 U.S. government agencies and trust funds.......................... 1,563 1,874 1,487 1,487 2,350 2,495 2,031 2,031 36 Federal Reserve Banks........................................................... 10,290 14,698 10,404 10,350 3,642 5,564 8,635 8,599 37 35,190 53,039 54,879 55,952 8,208 11,679 15,278 15,315 38 Commercial banks.............................................................. 13,910 15,482 14,901 14,794 427 578 1,446 1,346 39 Mutual savings banks.......................................................... 760 916 667 655 143 146 126 125 40 Insurance companies........................................................... 728 1,211 1,084 1,086 548 802 774 111 41 Nonfinancial corporations.................................................. 1,070 1,441 2,256 2,262 55 81 135 144 42 Savings and loan associations............................................ 718 1,430 1,152 1,234 13 16 17 16 43 State and local governments.............................................. 1,066 1,825 2,670 2,640 904 1,530 3,616 3,647 44 All others............................................................................. 16,938 28,733 32,149 33,279 6,120 8,526 9,164 9,260 Note. Direct public issues only. Based on Treasury Survey of Owner­ (1) 5,460 commercial banks 463 mutual savings banks, and 728 insurance ship from Treasury Bulletin (U.S. Treasury Department). companies, each about 80 percent; (2) 435 nonfinancial corporations and Data complete for U.S. government agencies and trust funds and 485 savings and loan associations, each about 50 percent; and (3) 491 Federal Reserve Banks, but data for other groups include only holdings state and local governments, about 40 percent. of those institutions that report. The following figures show, for each “All others,” a residual, includes holdings of all those not reporting category, the number and proportion reporting as of Jan. 31, 1979: 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 Financial Statistics □ April 1979 1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1978 1979 1979,week ending Wednesday Item 1975 1976 1977 Dec. Jan. Feb. Jan. 3 Jan. 10 Jan. 17 Jan. 24 Jan. 31 Feb. 7 1U.S. government securities.. . 6,027 10,449 10,838 8,838 10,778 11,612 9,824 10,139 9,040 10,030 13,874 13,331 By maturity: 2 Bills.................................... 3,889 6,676 6,746 5,336 6,016 6,261 6,502 6,008 5,248 5,309 7,010 7,437 3 Other within 1 year.......... 223 210 237 400 464 344 622 355 374 356 630 284 4 1-5 years............................ 1,414 2,317 2,320 1,676 2,344 2,595 1,569 1,714 1,668 2,445 3,820 3,009 5 5-10 years.......................... 363 1,019 1,148 739 813 1,185 542 772 727 791 1,102 1,446 6 Over 10 years..................... 138 229 388 687 1,140 1,227 589 1,289 1,023 1,129 1,312 1,155 By type of customer 7 U.S. government securities dealers........................ 885 1,360 1,267 954 1,037 1,235 915 1,033 840 1,002 1,361 1,267 8 U.S. government securities brokers....................... 1,750 3,407 3,709 3,303 4,525 4,750 3,307 4,094 3.995 4,287 5,900 5,845 9 Commercial banks............ 1,451 2,426 2,295 1,514 1,599 1,764 1,745 1,599 1,314 1,417 2,031 2,196 10 All others1......................... 1,941 3,257 3,568 3,066 3,616 3,863 3,858 3,413 2,891 3,324 4,582 4,023 11 Federal agency securities.... 1,043 1,548 1,729 2,325 2,477 2,351 2,005 2,239 2,480 2,386 3,016 2,383 1 Includes, among others, all other dealers and brokers in commodities Transactions are market purchases and sales of U.S. government and securities, foreign banking agencies, and the Federal Reserve System. securities dealers reporting to the Federal Reserve Bank of New York. The figures exclude allotments of, and exchanges for, new U.S. government Note. Averages for transactions are based on number of trading days securities, redemptions of called or matured securities, or purchases or in the period. sales of securities under 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 Week ending Wednesday 1978 1979 Item 1975 1976 1977 1978 1979 Dec. Jan. Feb. Dec. 13 Dec. 20 Dec. 27 Jan. 3 Jan. 10 Jan. 17 Positions2 1U.S. government securities.. . 5,884 7,592 5,172 2,134 3,549 3,077 2,620 2,495 2,067 905 3,254 3,583 2 Bills.................................... 4,297 6,290 4,772 1,922 3,045 3,060 2,704 2,458 1,060 361 2,420 3,143 3 Other within 1 year.......... 265 188 99 97 239 -72 -54 215 373 272 247 251 4 1-5 years........................... 886 515 60 -73 115 -355 -347 -367 583 367 159 -50 5 5-10 years.......................... 300 402 92 211 15 152 241 236 174 146 87 41 6 Over 10 years.................... 136 198 149 -24 134 293 76 -48 -123 -231 341 198 7 Federal agency securities.... 939 729 693 370 609 761 296 289 571 356 379 417 Sources of financing3 8 All sources............................. 6,666 8,715 9,877 11,915 13,157 13,370 12,465 12,865 11,896 10,450 11,837 13,141 Commercial banks: 9 New York City................. 1,621 1,896 1,313 635 2,136 2,189 802 1,242 339 1,142 1,912 1,881 10 Outside New York City... 1.466 1,660 1,987 2,209 2,367 2,402 2,430 2,338 2,321 1,620 2,062 2,425 11 Corporations1....................... 842 1,479 2,423 2,890 2,756 2,602 2,852 3,065 3,004 2,536 2,818 2,713 12 All others............................... 2,738 3,681 4,155 6,179 5,898 6,176 6,382 6,220 6,233 5,152 5,045 6,121 1 All business corporations except commercial banks and insurance firms and dealer departments of commercial banks against U.S. govern­ companies. ment 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 Agency 1975 1976 1977 July Aug. Sept. Oct. Nov. Dec. 1 Federal and federally sponsored agencies........... 97,680 103,325 109,924 122,638 123,297 125,397 127,468 129,139 131,982 2 Federal agencies.................................................... 19,046 21,896 22,760 23,286 22,505 23,139 23,279 23,073 23,488 3 Defense Department1....................................... 1,220 1,113 983 916 906 897 897 876 868 7,188 7,801 8,671 8,596 8,274 8,709 8,704 8,392 8,711 5 Federal Housing Administration4................... 564 575 581 603 603 601 598 594 588 6 Government National Mortgage Association participation certificates5......................... 4,200 4,120 3,743 3,666 3,166 3,166 3,166 3,166 3,141 7 Postal Service6.................................................. 1,750 2,998 2,431 2,364 2,364 2,364 2,364 2,364 2,364 8 Tennessee Valley Authority............................. 3,915 5,185 6,015 6,785 6,835 7,045 7,195 7,325 7,460 209 104 336 356 357 357 355 356 356 78,634 81,429 87,164 99,352 100,792 102,258 104,189 106,066 108,494 11 Federal Home Loan Banks............................. 18,900 16,811 18,345 23,430 24,360 25,025 25,395 26,777 27,563 12 Federal Home Loan Mortgage Corporation.. 1,550 1,690 1,686 1,937 1,937 2,063 2,063 2,062 2,262 13 Federal National Mortgage Association........ 29,963 30,565 31,890 36,900 37,518 38,353 39,776 39,814 41,080 15,000 17,127 19,118 20,198 20,198 20,198 20,360 20,360 20,360 15 Federal Intermediate Credit Banks.................. 9,254 10,494 11,174 11,392 11,482 11,555 11,554 11,548 11,469 16 Banks for Cooperatives................................... 3,655 4,330 4,434 4,788 4,570 4,317 4,264 4,668 4,843 17 Student Loan Marketing Association7............ 310 410 515 705 725 745 775 835 915 18 Other.................................................................. 2 2 2 2 2 2 2 2 2 Memo items: 19 Federal Financing Bank debt6,8........................... 17,154 28,711 38,580 45,550 46,668 48,078 49,212 49,645 51,298 Lending to federal and federally sponsored agencies: 4,595 5,208 5,834 6,132 6,132 6,568 6,568 6,568 6,898 21 Postal Service6.................................................. 1,500 2,748 2,181 2,114 2,114 2,114 2,114 2,114 2,114 22 Student Loan Marketing Association7........... 310 410 515 705 725 745 775 835 915 23 Tennessee Valley Authority............................. 1,840 3,110 4,190 4,960 5,010 5,220 5,370 5,500 5,635 24 United States Railway Association6............... 209 104 336 356 357 357 355 356 356 Other lending:9 25 Farmers Home Administration....................... 7,000 10,750 16,095 21,580 22,275 22,275 23,050 23,050 23,825 26 Rural Electrification Administration.............. 566 1,415 2,647 3,684 3,919 4,192 4,407 4,489 4,604 27 Other.................................................................. 1,134 4,966 6,782 6,019 6,136 6,607 6.573 6,733 6,951 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 8 The FFB, which began operations in 1974, is authorized to purchase thereafter. or sell obligations issued, sold, or guaranteed by other federal agencies. 4 Consists of debentures issued in payment of Federal Housing Ad­ Since FFB incurs debt solely for the purpose of lending to other agencies, ministration insurance claims. Once issued, these securities may be sold its debt is not included in the main portion of the table in order to avoid privately on the securities market. double counting. 5 Certificates of participation issued prior to fiscal 1969 by the Govern­ 9 Includes FFB purchases of agency assets and guaranteed loans; ment National Mortgage Association acting as trustee for the Farmers the latter contain loans guaranteed by numerous agencies with the Home Administration; Department of Health, Education, and Welfare; guarantees of any particular agency being generally small. The Farmers Department of Housing and Urban Development; Small Business Ad­ Home Administration item consists exclusively of agency assets, while the ministration ; and the Veterans Administration. Rural Electrification Administration entry contains both agency assets 6 Off-budget. and guaranteed loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Financial Statistics □ April 1979 1.47 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1978 1979 Type of issue or issuer, 1976 1977 1978 or use Sept. Oct. Nov. Dec. Jan. Feb. 1All issues, new and refunding i............................................ 35,313 46,769 48,607 2,330 3,244 4,328 3,694 2,799 2,575 Type of issue 2 18,040 18,042 17,854 703 1,148 1,168 1,698 1,286 933 3 Revenue............................................................................... 17,140 28,655 30,658 1,620 2,083 3,152 1,992 1,492 1,638 4 Housing Assistance Administration 2............................... 5 i33 72 95 7 13 8 4 21 4 Type of issuer 6 7,054 6,354 6,632 85 552 343 497 467 580 7 Special district and statutory authority............................ 15,304 21,717 24,156 1,599 1,616 2,848 2,148 940 1,181 8 Municipalities, counties, townships, school districts.... 12,845 18,623 17,718 639 1,061 1,129 1,043 1,372 810 9 Issues for new capital, total.................................................. 32,108 36,189 37,629 2,266 3,160 4,216 3,379 2,770 2,549 Use of proceeds 10 Education.......................................................................... 4,900 5,076 5,003 397 314 463 319 483 411 11 Transportation................................................................... 2,586 2,951 3,460 302 422 259 337 248 207 12 Utilities and conservation.................................................. 9,594 8,119 9,026 695 831 1,241 705 541 724 13 Social welfare.................................................................... 6,566 8,274 10,494 526 1,169 817 1,126 757 785 14 Industrial aid...................................................................... 483 4,676 3,526 105 249 323 276 264 171 15 Other purposes................................................................... 7,979 7,093 6,120 241 175 1,113 616 477 251 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 June July Aug. Sept. Oct. Nov. 1 All issues 1.................................... 53,619 53,488 54,205 5,215 4,226 3,311 3,832 '3,685 3,207 2 Bonds............................................. 42,756 42,380 42,193 3,810 3,718 2,529 2,905 '2,516 2,481 Type of offering 3 Public........................................ 32,583 26,453 24,186 1,744 2,177 1,497 1.610 '1,651 1,608 4 Private placement..................... 10,172 15,927 18,007 2,066 1,541 1,032 1,295 865 873 Industry group 5 Manufacturing......................... 16,980 13,264 12,510 1,105 675 485 823 '405 805 6 Commercial and miscellaneous. 2,750 4,372 5,887 562 417 414 454 487 112 7 Transportation......................... 3,439 4,387 2,033 225 235 115 135 67 96 8 Public utility............................. 9,658 8,297 8,261 815 768 521 912 819 384 9 Communication........................ 3,464 2,787 3,059 344 326 546 205 290 456 10 Real estate and financial.......... 6,469 9,274 10,438 761 1,296 448 375 446 627 11 Stocks........................................... 10,863 11,108 12,013 1,405 508 782 927 '1,169 726 Type 12 Preferred................................... 3,458 2,803 3,878 586 57 157 127 47 149 13 Common................................... 7,405 8,305 8,135 819 451 625 800 '1,122 577 Industry group 14 Manufacturing......................... 1,670 2,237 1,265 366 167 236 148 90 35 15 Commercial and miscellaneous 1,470 1,183 1,838 245 167 110 168 '112 111 16 T ransportation......................... 1 24 418 38 40 0 12 0 12 17 Public utility............................. 6,235 6,121 6,058 429 31 354 426 800 377 18 Communication....................... 1,002 776 1,379 5 27 6 10 0 1 19 Real estate and financial.......... 488 771 1,054 320 76 75 164 '167 190 1 Figures, which represent gross proceeds of issues maturing in more companies other than closed-end, intracorporate transactions, and sales to than one 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 1979 Item 1977 1978 Aug. Sept. Oct. Nov. Dec. Jan.r Feb. INVESTMENT COMPANIES excluding money market funds 1 Sales of own shares1........................................ 6,401 6,645 638 519 463 587 602 648 451 2 Redemptions of own shares2.......................... 6,027 7,231 882 673 607 439 545 607 548 3 357 -586 -244 -154 -144 148 57 41 -97 4 45,049 44,980 49,299 48,151 43,462 44,242 44,980 46,591 45,016 5 Cash position4.............................................. 3,274 4,507 3,948 3,703 3,793 4,299 4,507 4,624 4,851 6 Other............................................................. 41,775 40,473 45,351 44,448 39,669 39,943 40,473 41,967 40,165 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 mem­ to 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 Account 1976 1977 1978 Q2 Q3 Q4 Ql Q2 Q3 Q4 155.9 173.9 202.1 175.1 177.5 178.3 172.1 205.5 205.4 225.3 2 Profits tax liability................................................... 64.3 71.8 83.9 72.3 72.8 73.9 70.0 85.0 86.2 94.5 3 Profits after tax........................................................ 91.6 102.1 118.2 102.8 104.7 104.4 102.1 120.5 119.2 130.8 37.9 43.7 49.3 42.7 44.1 46.3 47.0 48.1 50.1 51.9 53.7 58.4 68.9 60.1 60.6 58.1 55.1 72.4 69.1 78.9 6 Capital consumption allowances............................. 97.1 106.0 114.4 105.0 107.6 109.3 111.3 113.3 115.4 117.5 7 Net cash flow............................................................ 150.8 164.4 183.3 165.1 168.2 167.4 166.4 185.7 184.5 196.4 Source. Survey of Current Business (U.S. Department of Commerce.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Financial Statistics □ April 1979 1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1976 1977 1978 Account 1974 1975 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 1 Current assets......................................................... 734.6 756.3 823.1 842.0 856.4 880.3 900.1 924.2 953.5 992.4 2 Cash.................................................................... 73.0 80.0 86.8 80.8 83.1 83.4 94.2 88.5 90.9 91.4 3 U.S. government securities.. t......................... 11.3 19.6 26.0 26.8 22.1 21.5 20.9 20.9 19.7 18.6 4 Notes and accounts receivable......................... 265.5 272.1 292.4 304.1 312.8 326.9 325.7 338.3 356.8 377.8 5 Inventories.......................................................... 318.9 314.7 341.4 352.1 358.8 367.5 375.0 389.7 399.1 415.5 6 Other................................................................... 65.9 69.9 76.4 78.3 79.6 81.0 84.3 86.8 87.0 89.0 7 Current liabilities.................................................... 451.8 446.9 487.5 502.6 509.5 528.9 543.2 570.4 590.8 624.5 8 Notes and accounts payable............................. 272.3 261.2 273.2 280.2 286.8 297.8 306.8 317.2 331.3 349.9 179.5 185.7 214.2 222.4 222.7 231.1 236.3 253.2 259.4 274.6 10 Net working capital................................................ 282.8 309.5 335.6 339.5 346.9 351.4 357.0 353.8 362.7 367.9 11 Memo: Current ratio1........................................... 1.626 1.693 1.688 1.675 1.681 1.664 1.657 1.620 1.614 1.589 1 Ratio of total current assets to total current liabilities. Source. Federal Trade Commission. Note. For a description of this series see “Working Capital of Non­ financial 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 1979 Industry 1977 1978 r Q3 Q4 Ql Q2 Q3 Q4 Ql2 Q22 1All industries.......................................................... 135.72 153.60 140.38 138.11 144.25 150.76 155.41 163.96 164.23 167.52 Manufacturing 2 Durable goods industries................................... 27.75 31.59 29.23 28.19 28.72 31.40 32.25 33.99 34.18 37.09 3 Nondurable goods industries............................ 32.33 35.86 33.79 33.22 32.86 35.80 35.50 39.26 37.78 38.81 Nonmanufacturing 4 Mining................................................................ 4.49 4.81 4.74 4.50 4.45 4.81 4.99 4.98 5.35 4.89 Transportation: 5 Railroad.......................................................... 2.82 3.33 3.20 2.80 3.35 3.09 3.38 3.49 3.77 3.11 6 Air................................................................... 1.63 2.34 1.69 1.76 2.67 2.08 2.20 2.39 3.28 2.36 7 Other............................................................... 2.55 2.42 1.96 2.32 2.44 2.23 2.47 2.55 3.01 2.89 Public utilities: 8 Electric............................................................ 21.57 24.71 21.90 22.05 23.15 23.83 24.92 26.95 27.06 26.92 9 Gas and other................................................ 4.21 4.72 4.32 4.18 4.78 4.62 4.70 4.78 5.24 4.98 1 1 1 0 C C o om m m m e u r n c i i c a a l t a io n n d . . o .. t .. h .. e .. r .. 1 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 2 5 . . 9 4 5 3 2 1 5 8 . . 6 1 7 5 2 1 3 6 . . 1 4 4 0 2 1 3 5 . . 2 8 7 2 2 1 4 7 . . 7 0 6 7 2 1 4 8 . . 7 1 1 8 2 1 6 8 . . 0 9 9 0 2 1 7 8 . . 1 4 2 6 I AA SA 46 46 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 Account 1973 1974 1975 1976 Q3 Q4 Ql Q2 Q3 Q4 ASSETS Accounts receivable, gross 1 Consumer............................................................ 35.4 36.1 36.0 38.6 42.3 44.0 44.5 47.1 49.7 52.6 2 Business.............................................................. 32.3 37.2 39.3 44.7 50.6 55.2 57.6 59.5 58.3 63.3 3 Total................................................................ 67.7 73.3 75.3 83.4 92.9 99.2 102.1 106.6 108.0 116.0 4 Less: Reserves for unearned income and losses 8.4 9.0 9.4 10.5 11.7 12.7 12.8 14.1 14.3 15.6 5 Accounts receivable, net....................................... 59.3 64.2 65.9 72.9 81.2 86.5 89.3 92.6 93.7 100.4 6 Cash and bank deposits................................... 2.6 3.0 2.9 2.6 2.5 2.6 2.2 2.9 2.7 3.5 7 Securities................................................................. .8 .4 1.0 1.1 1.8 .9 1.2 1.3 1.8 1.3 8 All other.................................................................. 10.6 12.0 11.8 12.6 14.2 14.3 15.0 16.2 17.1 17.3 73.2 79.6 81.6 89.2 99.6 104.3 107.7 112.9 115.3 122.4 LIABILITIES 10 Bank loans.............................................................. 7.2 9.7 8.0 6.3 5.4 5.9 5.8 5.4 5.4 6.5 11 Commercial paper.................................................. 19.7 20.7 22.2 23.7 25.7 29.6 29.9 31.3 29.3 34.5 Debt: 12 Short-term, n.e.c................................................. 4.6 4.9 4.5 5.4 5.4 6.2 5.3 6.6 6.8 8.1 13 Long-term, n.e.c................................................. 24.6 26.5 27.6 32.3 34.8 36.0 38.0 40.1 41.3 43.6 14 Other................................................................... 5.6 5.5 6.8 8.1 13.7 11.5 12.9 13.6 15.2 12.6 15 Capital, surplus, and undivided profits................ 11.5 12.4 12.5 13.4 14.6 15.1 15.7 16.0 17.3 17.2 16 Total liabilities and capital.................................... 73.2 79.6 81.6 89.2 99.6 104.3 107.7 112.9 115.3 122.4 Note. Components may not add to totals due to rounding. 1.522 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted Changes in accounts Extensions Repayments Accounts receivable receivable Type outstand­ ing Jan. 31, 1978 1979 1978 1979 1978 1979 19791 Nov. Dec. Jan. Nov. Dec. Jan. Nov. Dec. Jan. 1 Total................................................................. 63,847 1,210 1,271 860 16,293 17,680 16,160 15,083 16,409 15,300 2 Retail automotive (commercial vehicles)....... 14,654 229 245 145 1,260 1,308 1,231 1,031 1,063 1,086 3 Wholesale automotive..................................... 13,595 591 551 1,156 6,946 6,967 6,723 6,355 6,416 5,567 4 Retail paper on business, industrial, and farm equipment........................................ 16,355 226 20 -425 1,159 1,790 1,012 933 1,770 1,437 6 5 L Fa o c a t n o s r e o d n c c o o m m m m e e r r c c i i a a l l a a c c c c o o u u n n t t s s r r e e c c e e i i v v a a b b l l e e . . . . . . . J 6,630 X ( - 2 4 0 9 9 26 3 2 2 1 27 I ( 3 1 , , 3 77 1 6 0 4 1 , , 1 5 1 5 0 0 } 5,261 I ( 3 1 , , 3 5 5 6 9 7 3 1 , , 8 5 4 1 8 8 } 5,234 7 All other business credit................................. 12,613 4 161 -43 1,842 1,955 1,933 1,838 1,794 1,976 1 Not seasonally adjusted. 2 Beginning January 1979 the categories “Loans on commercial ac­ counts receivable” and “Factored commercial accounts receivable” are combined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Financial Statistics □ April 1979 1.53 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1978 1979 Item 1976 1977 1978 Sept. Oct. Nov. Dec. Jan. Feb. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms:1 1 Purchase price (thous. dollars)................. 48.4 54.3 62.6 64.6 66.8 65.1 68.1 71.9 68.3 2 Amount of loan (thous. dollars)............. 35.9 40.5 45.9 46.7 48.6 47.5 49.6 52.0 49.5 3 Loan/price ratio (percent)..................... 74.2 76.3 75.3 74.1 74.4 74.4 75.1 74.7 74.5 4 Maturity (years)....................................... 27.2 27.9 28.0 27.8 28.0 27.9 28.1 28.6 28.6 5 Fees and charges (percent of loan amount)2. 1.44 1.33 1.39 1.36 1.37 1.40 1.49 1.56 1.56 6 Contract rate (percent per annum).... 8.76 8.80 9.30 9.50 9.60 9.63 9.76 9.92 9.94 Yield (percent per annum): 7 FHLBB series 3.......................................... 8.99 9.01 9.54 9.73 9.83 9.87 10.02 10.18 10.20 8 HUD series4.............................................. 8.99 8.95 9.68 9.80 9.95 10.10 10.30 10.30 10.35 SECONDARY MARKETS Yields (percent per annum): 9 FHA mortgages (HUD series)5............... 8.82 8.68 9.70 9.78 9.93 9.99 10.16 10.17 10.17 10 GNMA securities6.................................... 8.17 8.04 8.98 9.04 9.25 9.39 9.54 r9.67 9.67 FNMA auctions:7 11 Government-underwritten loans.......... 8.99 8.73 9.77 9.78 10.03 10.30 10.50 10.70 10.54 12 Conventional loans............................... 9.11 8.98 10.01 10.02 10.19 10.56 10.85 11.07 11.04 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total................................................................ 32,904 34,370 43,311 41,189 41,957 42,590 43,311 44,329 45,155 18,916 18,457 21,243 20,325 20,625 20,929 21,243 r21,704 21,967 15 VA-guaranteed............................................ 9,212 9,315 10,544 10,575 10,565 10,535 10,544 '10,578 10,606 16 Conventional.............................................. 4,776 6,597 11,524 10,289 10,767 11,126 11,524 12,046 12,582 Mortgage transactions (during period) 3,606 4,780 12,303 1,132 1,053 920 974 1,280 1,173 18 Sales................................................................... 86 67 5 0 0 0 0 0 0 Mortgage commitments: 8 6,247 9,729 18,960 882 1,900 1,275 1,051 479 388 20 Outstanding (end of period)......................... 3,398 4,698 9,201 9,068 9,547 9,525 9,201 8,161 7,381 Auction of 4-month commitments to buy— Government-underwritten loans: 21 Offered9.......................................................... 4,929.8 7,974.1 12,978 717.9 1,964.8 788.0 627.0 304.9 210.6 2,787.2 4,846.2 6,747.2 335.9 832.4 321.8 319.6 155.4 161.2 Conventional loans: 23 Offered9.......................................................... 2,595.7 5,675.2 9,933.0 484.7 1,156.8 861.4 417.4 113.5 63.0 24 Accepted........................................................ 1,879.2 3,917.8 5,110.9 283.7 495.6 386.8 220.9 58.1 45.4 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)10 25 Total................................................................... 4,269 3,276 3,064 2,486 2,867 3,022 3,064 3,263 3,207 26 FHA/VA........................................................ 1,618 1,395 1,243 1,287 1,594 1,257 1,243 1,231 1,220 2,651 1,881 1,822 1,199 1,273 1,766 1,822 2,033 1,989 Mortgage transactions (during period) 1,175 3,900 6,524 670 791 763 596 498 300 29 Sales................................................................... 1,396 4,131 6,211 594 369 581 540 317 377 Mortgage commitments:11 1,477 5,546 7,451 760 547 706 455 374 357 31 Outstanding (end of period)............................. 333 1,063 1,410 2,130 1,716 1,617 1,410 1,248 1,177 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 conventional first figures are unweighted averages for auctions conducted within the month. mortgages, rounded to the nearest 5 basis points; from Dept, of Housing 8 Includes some multifamily and nonprofit hospital loan commitments and Urban Development. in addition to 1- to 4-family loan commitments accepted in FNMA’s 5 Average gross yields on 30-year, minimum-downpayment, Federal free market auction system, and through the FNMA-GNMA tandem Housing Administration-insured first mortgages for immediate delivery plans. in the private secondary market. Any gaps in data are due to periods of 9 Mortgage amounts offered by bidders are total bids received. adjustment to changes in maximum permissible contract rates. 10 Includes participations as well as whole loans. 6 Average net yields to investors on Government National Mortgage 11 Includes conventional and government-underwritten loans. Association-guaranteed, mortgage-backed, fully-modified pass-through Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate Debt A41 1.54 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1978 Type of holder, and type of property 1974 1975 1976 1977 Ql Q2 Q3 Q4? 1 742,512 801,537 889,327 1,023,505 r1,051,908 '1,092,451 1,133,122 1,169,522 ? 1. to 4-family......................................... 449,371 490,761 556,557 656,566 '676,573 '706,230 734,097 759,617 3 Multifamily.......................................... 99,976 100,601 104,516 111,841 '113,915 '116,419 119,207 121,928 4 Commercial........................................... 146,877 159,298 171,223 189,274 '193,355 '198,926 206,045 211,810 5 Farm...................................................... 46,288 50,877 57,031 65,824 '68,065 '70,876 73,773 76,167 6 Maior financial institutions....................... 542,560 581,193 647,650 745,011 764,614 '794,009 822,184 846,788 7 Commercial banks1............................... 132,105 136,186 151,326 178,979 184,423 '194,469 205,445 213,845 8 1- to 4-family..................................... 74,758 77,018 86,234 105,115 108,699 '115,389 121,911 126,896 9 Multifamily........................................ 7,619 5,915 8,082 9,215 9,387 '9,925 10,478 10,906 10 Commercial....................................... 43,679 46,882 50,289 56,898 58,407 '60,950 64,386 67,019 11 Farm.................................................. 6,049 6,371 6,721 7,751 7,930 '8,205 8,670 9,024 12 Mutual savings banks............................ 74,920 77,249 81,639 88,104 89,800 91,535 93,403 95,044 13 1- to 4-family..................................... 49,213 50,025 53,089 57,637 58,747 59,882 61,104 62,178 14 Multifamily........................................ 12,923 13,792 14,177 15,304 '15,598 15,900 16,224 16,509 15 Commercial....................................... 12,722 13,373 14,313 15,110 15,401 15,698 16,019 16,300 16 Farm.................................................. 62 59 60 53 54 55 56 57 17 Savings and loan associations................ 249,301 278,590 323,130 381,163 '.392,428 '407,965 420,971 432,922 18 1- to 4-family..................................... 200,987 223,903 260,895 310,686 '320,064 '334,164 345,232 355,291 19 Multifamily........................................ 23,808 25,547 28,436 32,513 '33,592 '34,351 35,446 36,452 20 Commercial....................................... 24,506 29,140 33,799 37,964 '38,772 '39,450 40,293 41,179 21 Life insurance companies....................... 86,234 89,168 91,555 96,765 97,963 100,040 102,365 104,971 22 1- to 4-family..................................... 19,026 17,590 16,088 14,727 14,476 14,129 14,189 14,550 23 Multifamily........................................ 19,625 19,629 19,178 18,807 18,851 18,745 18,803 19,284 24 Commercial....................................... 41,256 45,196 48,864 54,388 55,426 57,463 59,268 60,782 25 Farm.................................................. 6,327 6,753 7,425 8,843 9,210 9,703 10,105 10,361 26 Federal and related agencies.................... 58,320 66,891 66,753 70,006 72,014 73,991 78,672 82,086 27 Government National Mortgage Assn... 4,846 7,438 4,241 3,660 3,291 3,283 3,560 3,610 28 1- to 4-family..................................... 2,248 4,728 1,970 1,548 948 922 897 910 29 Multifamily........................................ 2,598 2,710 2,271 2,112 2,343 2,361 2,663 2,700 30 Farmers Home Admin........................... 1,432 1,109 1,064 1,353 1,179 618 1,384 1,084 31 1- to 4-family..................................... 759 208 454 626 202 124 460 360 32 Multifamily........................................ 167 215 218 275 408 102 240 188 33 Commercial....................................... 156 190 72 149 218 104 251 197 34 Farm.................................................. 350 496 320 303 351 288 433 339 35 Federal Housing and Veterans Admin... 4,015 4,970 5,150 5,212 5,219 5,225 5,295 5,365 36 1- to 4-family..................................... 2,009 1,990 1,676 1,627 1,585 1,543 1,565 1,587 37 Multifamily........................................ 2,006 2,980 3,474 3,585 3,634 3,682 3,730 3,778 38 Federal National Mortgage Assn.......... 29,578 31,824 32,904 34,369 36,029 38,753 41,189 43,311 39 1- to 4-family..................................... 23,778 25,813 26,934 28,504 30,208 32,974 35,437 37,579 40 Multifamily........................................ 5,800 6,011 5,970 5,865 5,821 5,779 5,752 5,732 41 Federal Land Banks............................... 13,863 16,563 19,125 22,136 22,925 23,857 24,758 25,658 42 1- to 4-family..................................... 406 549 601 670 691 727 819 849 43 Farm.................................................. 13,457 16,014 18,524 21,466 22,234 23,130 23,939 24,809 44 Federal Home Loan Mortgage Corp.... 4,586 4,987 4,269 3,276 3,371 2,255 2,486 3,058 45 1- to 4-family..................................... 4,217 4,588 3,889 2,738 2,785 1,856 1,994 2,453 46 Multifamily........................................ 369 399 380 538 586 399 492 605 47 Mortgage pools or trusts2......................... 23,799 34,138 49,801 70,289 74,080 78,602 82,153 86,747 48 Government National Mortgage Assn... 11,769 18,257 30,572 44,896 46,357 48,032 50,844 54,347 49 1- to 4-family..................................... 11,249 17,538 29,583 43,555 44,906 46,515 49,276 52,732 50 Multifamily........................................ 520 719 989 1,341 1,451 1,517 1,568 1,615 51 Federal Home Loan Mortgage Corp... 757 1,598 2,671 6,610 7,471 9,423 9,934 10,125 52 1- to 4-family..................................... 608 1,349 2,282 5,621 6,286 7,797 8,358 8,519 53 Multifamily........................................ 149 249 389 989 1,185 1,626 1,576 1,606 54 Farmers Home Admin........................... 11,273 14,283 16,558 18,783 20,252 21,147 1,084 22,275 55 1- to 4-family..................................... 6,782 9,194 10,219 11,379 12,235 12,742 360 13,392 56 Multifamily........................................ 116 295 532 759 732 1,128 188 1,163 57 Commercial....................................... 1,473 1,948 2,440 2,945 3,528 3,301 197 3,510 58 Farm.................................................. 2,902 2,846 3,367 3,682 3,757 3,976 339 4,210 59 Individuals and others3............................. 117,833 119,315 125,123 138,199 141,200 145,849 150,113 153,901 60 1- to 4-family..................................... 53,331 56,268 62,643 72,115 74,741 77,466 80,004 82,321 61 Multifamily........................................ 24,276 22,140 20,420 20,538 20,327 20,904 21,119 21,390 62 Commercial....................................... 23,085 22,569 21,446 21,820 21,603 21,960 22,459 22,823 63 Farm.................................................. 17,141 18,338 20,614 23,726 24,529 25,519 26,531 27,367 1 Includes loans held by nondeposit trust companies but not bank trust Note. Based on data from various institutional and government departments. sources, with some quarters estimated in part by Federal Reserve in 2 Outstanding principal balances of mortgages backing securities in­ conjunction with the Federal Home Loan Bank Board and the Depart­ sured or guaranteed by the agency indicated. ment of Commerce. Separation of nonfarm mortgage debt by type of 3 Other holders include mortgage companies, real estate investment property, if not reported directly, and interpolations and extrapolations trusts, state and local credit agencies, state and local retirement funds, where required, are estimated mainly by Federal Reserve. Multifamily noninsured pension funds, credit unions, and U.S. agencies for which debt refers to loans on structures of five 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 Financial Statistics □ April 1979 1.55 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change A Millions of dollars 1978 1979 Holder, and type of credit 1976 1977 1978 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Amounts outstanding (end of period) 1 193,977 230,829 275,640 259,614 263,387 265,821 269,445 275,640 275,346 275,818 By major holder 2 Commercial banks.......................... 93,728 112,373 136,189 129,622 131,403 132,702 133,908 136,189 136,452 136,671 3 Finance companies......................... 38,919 44,868 54,309 50,558 51,280 51,984 53,099 54,309 55,004 55,728 4 Credit unions................................... 31,169 37,605 45,939 43,499 44,325 44,635 45,305 45,939 45,526 45,661 5 Retailers2......................................... 19,260 23,490 24,876 22,093 22,302 22,464 23,006 24,876 23,962 23,246 6 Savings and loans........................... 6,246 7,354 8,394 7,947 8,055 8,177 8,291 8,394 8,427 8,488 7 Gasoline companies....................... 2,830 2,963 3,240 3,354 3,416 3,276 3,173 3,240 3,338 3,274 8 Mutual savings banks..................... 1,825 2,176 2,693 2,541 2,606 2,583 2,663 2,693 2,637 2,750 By major type of credit 9 Automobile..................................... 67,707 82,911 102,468 97,687 99,062 100,159 101,565 102,468 102,890 103,780 10 Commercial banks...................... 39,621 49,577 60,564 58,453 59,085 59,778 60,347 60,564 60,682 61,053 11 Indirect paper.......................... 22,072 27,379 33,850 32,667 33,067 33,415 33,709 33,850 33,928 34,261 12 Direct loans............................. 17,549 22,198 26,714 25,786 26,018 26,363 26,638 26,714 26,754 26,792 13 Credit unions............................... 15,238 18,099 21,976 20,801 21,196 21,344 21,664 21,967 21,769 21,834 14 Finance companies..................... 12,848 15,235 19,937 18,433 18,781 19,037 19,554 19,937 20,439 20,893 15 Revolving........................................ 17,189 39,274 47,051 41,629 42,420 42,579 43,523 47,051 46,516 45,586 16 Commercial banks...................... 14,359 18,374 24,434 21,314 21,935 22,165 22,724 24,434 24,677 24,502 17 Retailers....................................... 17,937 19,377 16,961 17,069 17,138 17,626 19,377 18,501 17,810 18 Gasoline companies.................... 2,830 2,963 3,240 3,354 3,416 3,276 3,173 3,240 3,338 3,274 19 Mobile home................................... 14.573 15,141 16,042 15,799 15,910 15,925 16,017 16,042 16,004 16,008 20 Commercial banks...................... 8,737 9,124 9,553 9,539 9,591 9,548 9,572 9,553 9,511 9,495 21 Finance companies..................... 3,263 3,077 3,152 3,101 3,114 3,127 3,150 3,152 3,149 3,147 22 Savings and loans....................... 2,241 2,538 2,848 2,696 2,733 2,775 2,813 2,848 2,859 2,880 23 Credit unions............................... 332 402 489 463 472 475 482 489 485 486 24 Other................................................ 94,508 93,503 110,079 104,499 105,995 107,158 108,340 110,079 109,936 110,444 25 Commercial banks...................... 31,011 35,298 41,638 40,316 40,792 41,211 41,265 41,638 41,582 41,621 26 Finance companies..................... 22,808 26,556 31,220 29,024 29,385 29,820 30,395 31,220 31,416 31,688 27 Credit unions............................... 15,599 19,104 23,483 22,235 22,657 22,816 23,159 23,483 23,272 23,341 28 Retailers....................................... 19,260 5,553 5,499 5,132 5,233 5,326 5,380 5,499 5,461 5.436 29 Savings and loans....................... 4,005 4,816 5,546 5,251 5,322 5,402 5,478 5,546 5,568 5,608 30 Mutual savings banks................. 1,825 2,176 2,693 2,541 2,606 2,583 2,663 2,693 2,637 2,750 Net change (during period)3 31 Total................................. 21,647 35,278 45,066 3,632 3,680 r3,382 '4,104 4,400 3,061 3,308 By major holder 32 Commercial banks 10,792 18,645 24,058 1,785 1,714 1,617 1,925 2,080 1,330 1,630 33 Finance companies___ 2,946 5,948 9,441 736 847 863 1,018 1,098 1,341 1,205 34 Credit unions............... 5,503 6,436 8,334 613 639 644 779 773 360 402 35 Retailers1..................... 1,059 2,654 1,386 342 328 115 186 196 -90 -221 36 Savings and loans........ 1,085 1,111 1,041 107 94 127 88 115 67 86 37 Gasoline companies. .. 124 132 276 -1 9 16 -1 96 100 68 38 Mutual savings banks. 138 352 530 50 49 104 42 -47 138 By major type of credit 39 Automobile................ 10,465 15,204 19,557 1,604 1,532 1,375 1,755 1,780 1,680 1,565 40 Commercial banks. 6,334 9,956 10,987 957 848 759 839 845 633 739 41 Indirect paper. . . 2,742 5,307 6,471 515 517 354 440 530 387 530 42 Direct loans........ 3,592 4,649 4,516 442 331 405 399 315 246 209 43 Credit unions.......... 2,497 2,861 3,868 287 313 301 364 391 187 190 44 Finance companies. 1,634 2,387 4,702 360 371 315 552 544 860 636 45 Revolving..................... 2,170 6,248 7,776 737 622 346 665 869 433 317 46 Commercial banks. . 2,046 4,015 6,060 358 380 337 556 610 375 492 47 Retailers................... 2,101 1,440 380 233 -7 110 163 -42 -243 48 Gasoline companies. 132 276 -1 9 16 -1 96 100 68 49 Mobile home............. 565 897 79 72 25 75 71 40 56 50 Commercial banks. 387 426 20 31 -25 19 21 12 15 51 Finance companies. -189 74 7 6 -2 15 11 7 9 52 Savings and loans.. 297 310 46 27 46 34 30 19 28 53 Credit unions.......... 70 87 6 8 6 7 9 2 4 54 Other................................ 13,261 16,836 1,212 1,454 rl,636 r1,609 1,680 908 1,370 55 Commercial banks 4,287 6,585 450 455 r554 >-516 604 310 384 56 Finance companies 3,750 4,665 369 470 550 451 543 474 560 57 Credit unions............... 3,505 4,379 320 318 337 408 373 171 208 58 Retailers....................... 553 -54 -38 95 122 76 33 -48 22 59 Savings and loans........ 814 731 61 67 81 54 85 48 58 60 Mutual savings banks. 352 530 50 49 104 42 -47 138 1 The board’s series cover most short- and intermediate-term credit Note. Total consumer noninstallment 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 $64.3 billion at the end debts incurred for such purposes, and scheduled to be repaid (or with of 1978, $58.6 billion at the end of 1977, $54.8 billion at the end of 1976, the option of repaying in two or more installments). and $50.9 billion at the end of 1975. Comparable data for Dec. 31, 1979 2 Includes auto dealers and excludes 30-day charge credit held by will be published in the February 1980 Bulletin. travel and entertainment companies. A Consumer installment 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 INSTALLMENT CREDIT Extensions and Liquidations A Millions of dollars 1978 1979 Holder, and type of credit 1976 1977 1978 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Extensions2 1 Total. 211,028 254,071 298,574 25,669 r25,537 '25,766 '26,219 26,500 25,544 26,202 By major holder 2 Commercial banks 97,397 117,896 142,965 12,255 12,123 '12,190 '12,481 12,521 12,153 12,430 3 Finance companies___ 36,129 41,989 50,483 4,348 4,372 4,605 4,512 4,679 4,547 4,822 4 Credit unions............... 29,259 34,028 40,023 3,379 3,360 3,401 3,530 3,526 3,241 3,238 5 Retailers1..................... 29,447 39,133 41,619 3,725 3,718 3,518 3,571 3,612 3,565 3,460 6 Savings and loans........ 3,898 4,485 5,050 435 403 566 489 516 481 468 7 Gasoline companies. .. 13,387 14,617 16,125 1,317 1,346 1,335 1,376 1,451 1,440 1,486 8 Mutual savings banks. 1,511 1,923 2,309 210 215 151 260 195 117 298 By major type of credit 9 Automobile................ 63,743 75,641 88,986 7,744 7,542 7,501 7,787 7,833 7,545 7,756 10 Commercial banks. 37,886 46,363 53,028 4,660 4,479 4,345 4,503 4,443 4,286 4,430 11 Indirect paper. . . 20,576 25,149 29,336 2,562 2,519 2,384 2,422 2,451 2,318 2,472 12 Direct loans........ 17,310 21,214 23,692 2,098 1,960 1,961 2,081 1,992 1,968 1,958 13 Credit unions.......... 14,688 16,616 19,486 1,632 1,641 1,643 1,718 1,738 1,635 1,624 14 Finance companies. 11,169 12,662 16,472 1,452 1,422 1,513 1,566 1,652 1,624 1,702 15 Revolving..................... 43,934 86,756 104,587 9,028 9,006 8,846 9,176 9,424 9,417 9,357 16 Commercial banks. . 30,547 38,256 51,531 4,346 4,457 4,475 4,702 4,814 4,799 4,860 17 Retailers................... 33,883 36,931 3,365 3,203 3,036 3,098 3,159 3,178 3,011 18 Gasoline companies. 13,387 14,617 16,125 1,317 1,346 1,335 1,376 1,451 1,440 1,486 19 Mobile home.............. 4,859 5,425 6,067 531 494 604 486 502 369 454 20 Commercial banks. 3,064 3,466 3,704 310 297 352 280 295 235 295 21 Finance companies. 702 643 886 75 77 73 77 74 33 60 22 Savings and loans.. 929 1,120 1,239 127 100 154 108 111 88 81 23 Credit unions.......... 164 196 238 19 20 25 21 22 13 18 24 Other................................ 98,492 86,249 98,934 8,366 8,495 '8,815 '8,870 8,741 8,213 8,635 25 Commercial banks 25,900 29,811 34,702 2,939 2,890 '3,018 '2,996 2,969 2,833 2,845 26 Finance companies 24,258 28,684 33,125 2,821 2,873 3,019 2,869 2,953 2,890 3,060 27 Credit unions............... 14,407 17,216 20,299 1,728 1,699 1,733 1,791 1,766 1,593 1,596 28 Retailers....................... 29,447 5,250 4,688 360 515 482 473 453 387 449 29 Savings and loans........ 2,969 3,365 3,811 308 303 412 381 405 393 387 30 Mutual savings banks. 1,511 1,923 2,309 210 215 151 260 195 117 298 Liquidations2 31 Total.................................................... 189,381 218,793 253,508 22,037 21,857 22,384 22,115 22,100 22,483 22,894 By major holder 32 Commercial banks......................... 86,605 99,251 118,907 10,470 10,409 10,565 10,551 10,441 10,823 10,800 33 Finance companies......................... 33,183 36,041 41,042 3,612 3,525 3,742 3,494 3,581 3,206 3,617 34 Credit unions................................... 23,756 27,592 31,689 2,766 2,721 2,757 2,751 2,753 2,881 2,836 35 Retailers1......................................... 28,388 36,479 40,233 3,383 3,390 3,403 3,385 3,416 3,655 3,681 36 Savings and loans........................... 2,813 3,374 4,009 328 309 439 401 401 414 382 37 Gasoline companies....................... 13,263 14,485 15,849 1,318 1,337 1,319 1,377 1,355 1,340 1,418 38 Mutual savings banks..................... 1,373 1,571 1,779 160 166 159 156 153 164 160 By major type of credit 39 Automobile..................................... 53,278 60,437 69,429 6,140 6,010 6,126 6,032 6,053 5,865 6,191 40 Commercial banks...................... 31,552 36,407 42,041 3,703 3,631 3,586 3,664 3,598 3,653 3,691 41 Indirect paper.......................... 17,834 19,842 22,865 2,047 2,002 2,030 1,982 1,921 1,931 1,942 42 Direct loans............................. 13,718 16,565 19,176 1,656 1,629 1,556 1,682 1,677 1,722 1,749 43 Credit unions............................... 12,191 13,755 15,618 1,345 1,328 1,342 1,354 1,347 1,448 1,434 44 Finance companies..................... 9,535 10,275 11,770 1,092 1,051 1,198 1,014 1,108 764 1,066 45 Revolving......................................... 41,764 80,508 96,811 8,291 8,384 8,500 8,511 8,555 8,984 9,040 46 Commercial banks...................... 28,501 34,241 45,471 3,988 4,077 4,138 4,146 4,204 4,424 4,368 47 Retailers....................................... 31,782 35,491 2,985 2,970 3,043 2,988 2,996 3,220 3,254 48 Gasoline companies.................... 13,263 14,485 15,849 1,318 1,337 1,319 1,377 1,355 1,340 1,418 49 Mobile home................................... 4,719 4,860 5,170 452 422 579 411 431 329 398 50 Commercial banks...................... 2,994 3,079 3,278 290 266 377 261 274 223 280 51 Finance companies..................... 884 832 812 68 71 75 62 63 26 51 52 Savings and loans....................... 737 823 929 81 73 108 74 81 69 53 53 Credit unions............................... 104 126 151 13 12 19 14 13 11 14 54 Other................................................ 89,620 72,988 82,098 7,154 7,041 7,179 7,161 7,061 7,305 7,265 55 Commercial banks...................... 23,558 25,524 28,117 2,489 2,435 2,464 2,480 2,365 2,523 2,461 56 Finance companies..................... 22,764 24,934 28,460 2,452 2,403 2,469 2,418 2,410 2,416 2,500 57 Credit unions............................... 11,461 13,711 15,920 1,408 1,381 1,396 1,383 1,393 1,422 1,388 58 Retailers....................................... 28,388 4,697 4,742 398 420 360 397 420 435 427 59 Savings and loans....................... 2,076 2,551 3,080 247 236 331 327 320 345 329 60 Mutual savings banks................. 1,373 1,571 1,779 160 166 159 156 153 164 160 1 Includes auto dealers and excludes 30-day charge credit held by ▲ Consumer installment 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 Financial Statistics □ April 1979 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1976 1977 1978 Transaction category, or sector 1973 1974 1975 1976 1977 1978 HI H2 HI H2 HI H2 Nonfinancial sectors 1Total funds raised......................................... 203.8 188.8 208.1 272.5 340.5 389.4 259.6 285.6 302.2 378.9 378.2 400.7 2 Excluding equities..................................... 196.1 184.9 198.0 261.7 337.4 387.4 245.9 277.5 301.0 373.8 376.8 398.0 By sector and instrument 3 U.S. government....................................... 8.3 11.8 85.4 69.0 56.8 53.7 73.5 64.5 42.6 71.0 58.7 48.6 4 Public debt securities........................... 7.9 12.0 85.8 69.1 57.6 55.1 73.4 64.9 43.1 72.2 59.7 50.5 5 Agency issues and mortgages.............. .4 -.2 -.4 -.1 -.9 -1.4 .1 -.3 -.6 -1.2 -.9 -1.9 6 All other nonfinancial sectors................... 195.5 177.0 122.7 203.5 283.8 335.8 186.0 221.0 259.6 307.9 319.4 352.1 7 Corporate equities................................ 7.7 3.8 10.1 10.8 3.1 2.1 13.6 8.1 1.2 5.1 1.4 2.7 8 Debt instruments................................. 187.9 173.1 112.6 192.6 280.6 333.7 172.4 213.0 258.5 302.8 318.0 349.3 9 Private domestic nonfinancial sectors. . 189.3 161.6 109.5 182.8 271.4 310.1 168.5 197.2 252.1 290.7 302.2 318.0 10 Corporate equities............................ 7.9 4.1 9.9 10.5 2.7 2.6 13.3 7.7 .5 4.9 2.2 3.0 11 Debt instruments............................... 181.4 157.5 99.6 172.3 268.7 307.5 155.2 189.5 251.6 285.8 300.0 314.9 12 Debt capital instruments............... 105.0 98.0 97.8 126.8 181.1 194.8 117.8 135.9 163.4 198.9 185.6 204.0 13 State and local obligations.... 14.7 16.5 15.6 19.0 29.2 29.6 19.3 18.7 29.3 29.0 28.5 30.8 14 Corporate bonds....................... 9.2 19.7 27.2 22.8 21.0 20.1 22.2 23.5 16.0 26.0 19.0 21.2 Mortgages: 15 Home..................................... 46.4 34.8 39.5 63.7 96.4 101.4 56.9 70.5 88.5 104.2 99.3 103.6 16 Multifamily residential....... 10.4 6.9 * 1.8 7.4 10.1 .6 3.1 6.4 8.4 9.2 11.1 17 Commercial........................... 18.9 15.1 11.0 13.4 18.4 23.1 13.8 12.9 14.2 22.6 20.3 26.0 18 Farm....................................... 5.5 5.0 4.6 6.1 8.8 10.3 4.9 7.3 8.9 8.7 9.3 11.4 19 Other debt instruments................. 76.4 59.6 1.8 45.5 87.6 112.7 37.4 53.6 88.2 86.9 114.5 110.9 20 Consumer credit....................... 23.8 10.2 9.4 23.6 35.0 50.5 22.9 24.3 35.1 34.4 49.8 51.3 21 Bank loans n.e.c........................ 39.8 29.0 -14.0 3.5 30.6 37.1 -2.7 9.6 34.0 27.2 41.4 32.7 22 Open market paper................... 2.5 6.6 -2.6 4.0 2.9 4.9 5.6 2.4 3.5 2.4 5.2 4.5 23 Other.......................................... 10.3 13.7 9.0 14.4 19.0 20.2 11.6 17.3 15.0 23.0 18.0 22.4 24 By borrowing sector.......................... 189.3 161.6 109.5 182.8 271.4 310.1 168.5 197.2 252.1 290.7 302.2 318.0 25 State and local governments........ 13.2 15.5 13.2 18.5 25.9 24.9 17.6 19.5 22.1 29.0 21.7 28.1 26 Households................................... 80.9 49.2 48.6 89.9 139.6 161.3 82.7 97.1 131.2 148.0 155.0 167.5 27 Farm.............................................. 9.7 7.9 8.7 11.0 14.7 17.2 9.9 12.1 15.5 13.8 14.6 19.9 28 Nonfarm noncorporate................ 12.8 7.4 2.0 5.2 12.6 17.2 4.0 6.4 12.8 12.3 20.3 14.2 29 Corporate................................... 72.7 81.8 37.0 58.2 78.7 89.5 54.3 62.2 69.8 87.6 90.6 88.2 30 Foreign.................................................. 6.2 15.3 13.2 20.7 12.3 25.7 17.5 23.8 7.5 17.2 17.2 34.1 31 Corporate equities............................ -.2 -.2 .2 .3 .4 -.5 .3 .3 .6 .2 -.8 -.3 32 Debt instruments............................... 6.4 15.6 13.0 20.4 11.9 26.2 17.2 23.5 6.9 17.0 18.0 34.4 33 Bonds............................................ 1.0 2.1 6.2 8.5 5.0 4.3 1.4 9.1 4.4 5.6 4.9 3.1 34 Bank loans n.e.c............................ 2.8 4.7 3.7 6.6 1.6 12.0 5.4 1.9 -3.2 6.4 6.2 17.7 35 Open market paper....................... .9 7.3 .3 1.9 2.4 6.6 1.5 2.4 2.7 2.2 3.6 9.6 36 U.S. government loans................ 1.7 1.5 2.8 3.3 3.0 3.3 2.9 3.6 3.1 2.9 3.3 3.4 Financial sectors 37 Total funds raised......................................... 57.6 36.4 11.7 29.2 58.8 93.8 27.9 30.5 61.5 56.2 102.9 84.6 By instrument 38 U.S. government related........................... 19.9 23.1 13.5 18.6 26.3 39.0 18.2 19.0 25.0 27.5 41.5 36.5 39 Sponsored credit agency securities.... 16.3 16.6 2.3 3.3 7.0 22.6 4.1 2.6 9.5 4.4 24.9 20.2 40 Mortgage pool securities..................... 3.6 5.8 10.3 15.7 20.5 16.5 14.2 17.2 17.9 23.1 16.6 16.3 41 Loans from U.S. government............ .7 .9 -.4 -1.2 * - .7 -2.3 0 0 0 42 Private financial sectors........................... 37.7 13.3 -1.9 10.6 32.6 54.7 9.7 11.5 36.5 28.7 61.4 48.0 43 Corporate equities................................ 1.5 .3 .6 1.0 .6 1.1 -.2 2.3 .5 .1 1.1 1.0 44 Debt instruments................................... 36.2 13.0 -2.5 9.6 32.0 53.7 10.0 9.2 36.0 28.0 60.3 47.0 45 Corporate bonds............................... 3.5 2.1 2.9 5.8 10.1 7.7 6.4 5.2 10.1 10.1 8.4 6.9 46 Mortgages......................................... -1.2 -1.3 2.3 2.1 3.1 .9 1.5 2.7 3.3 2.9 2.4 -.5 47 Bank loans n.e.c................................ 8.9 4.6 -3.6 -3.7 * 1.2 -2.6 -4.8 -2.3 2.3 .5 1.9 48 Open market paper and RPs.......... 17.8 .9 -.1 7.3 14.4 31.3 6.2 8.5 21.4 7.4 34.9 27.8 49 Loans from FHLBs......................... 7.2 6.7 -4.0 -2.0 4.3 12.5 -1.5 -2.5 3.4 5.2 14.1 10.9 By sector 57.6 36.4 11.7 29.2 58.8 93.8 27.9 30.5 61.5 56.2 102.9 84.6 50 Sponsored credit agencies....................... 16.3 17.3 3.2 2.9 5.8 22.6 4.0 1.8 7.1 4.4 24.9 20.2 51 Mortgage pools........................................ 3.6 5.8 10.3 15.7 20.5 16.5 14.2 17.2 17.9 23.1 16.6 16.3 52 Private financial sectors........................... 37.7 13.3 -1.9 10.6 32.6 54.7 9.7 11.5 36.5 28.7 61.4 48.0 53 Commercial banks............................... 14.1 -5.6 -1.4 1.5 4.8 8.2 9.0 6.0 10.0 -.4 12.2 4.2 54 Bank affiliates....................................... 2.2 3.5 .3 -.8 1.3 4.3 -1.3 -.3 1.3 1.2 5.8 2.8 55 Savings and loan associations............. 6.0 6.3 -2.2 * 11.9 16.4 .1 -.1 10.6 13.1 19.7 13.1 56 Other insurance companies................. .5 .9 1.0 .9 .9 1.1 .9 .9 .9 1.0 1.0 1.1 57 Finance companies............................... 9.4 6.0 .6 6.4 16.9 19.7 6.0 6.9 17.4 16.4 18.7 20.6 58 REITs.................................................... 6.5 .6 -1.4 -2.4 -2.4 -1.3 -2.1 -2.7 -2.5 -2.2 -1.3 -1.3 59 Open-end investment companies........ -1.2 -.7 -.1 -1.0 -1.0 -.5 -2.4 .4 -.8 -1.2 -.6 -.4 60 Money market funds........................... 2.4 1.3 * .2 6.9 -.5 .5 -.5 .9 5.9 8.0 All sectors 61 Total funds raised, by instrument............... 261.4 225.1 219.8 301.7 399.4 483.2 287.5 316.0 363.7 435.0 481.1 485.3 62 Investment company shares.................... -1.2 -.7 -.1 -1.0 -1.0 -.5 -2.4 .4 -.8 -1.2 -.6 -.4 63 Other corporate equities......................... 10.4 4.8 10.8 12.9 4.8 3.6 15.8 9.9 2.5 7.0 3.1 4.2 64 Debt instruments....................................... 252.3 221.0 209.1 289.8 395.6 480.1 274.1 305.7 362.0 429.2 478.6 481.5 65 U.S. government securities.................. 28.3 34.3 98.2 88.1 84.3 92.8 91.9 84.3 10.0 98.6 100.4 85.2 66 State and local obligations.................. 14.7 16.5 15.6 19.0 29.2 29.8 19.3 18.7 29.3 29.0 28.5 30.8 67 Corporate and foreign bonds.............. 13.6 23.9 36.4 37.2 36.1 32.1 36.1 38.4 30.5 41.7 32.3 31.8 68 Mortgages............................................. 79.9 60.5 57.2 87.1 134.0 145.9 77.7 96.4 121.2 146.7 140.3 151.5 69 Consumer credit................................... 23.8 10.2 9.4 23.6 35.0 50.5 22.9 24.3 35.7 34.4 49.8 51.3 70 Bank loans n.e.c................................... 51.6 38.3 -13.9 6.4 32.2 50.2 .1 12.6 28.4 35.9 48.2 52.2 71 Open market paper and RPs.............. 21.2 14.8 -2.4 13.3 19.8 42.8 13.3 13.3 27.6 11.9 43.7 41.9 72 Other loans........................................... 19.1 22.6 8.7 15.3 25.1 36.1 12.9 17.7 19.2 31.0 35.4 36.8 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. 1976 1977 1978 Transaction category, or sector 1973 1974 1975 1976 1977 1978 HI H2 HI H2 HI H2 1 Total funds advanced in credit markets to nonfinancial sectors............................... 196.1 184.9 198.0 261.7 337.4 387.4 245.9 277.5 301.0 373.8 376.8 398.0 By public agencies and foreign 2 Total net advances........................................ 34.1 52.6 44.3 54.5 85.4 102.8 49.7 59.3 69.3 101.6 103.5 102.0 3 U.S. government securities.................... 9.5 11.9 22.5 26.8 40.2 43.1 24.4 29.3 27.2 53.2 42.7 43.6 4 Residential mortgages............................. 8.2 14.7 16.2 12.8 20.4 24.6 11.8 13.7 20.0 20.9 23.5 25.7 5 FHLB advances to S&Ls....................... 7.2 6.7 -4.0 -2.0 4.3 12.5 -1.5 -2.5 3.4 5.2 14.1 10.9 6 Other loans and securities....................... 9.2 19.4 9.5 16.9 20.5 22.6 15.0 18.8 18.6 22.4 23.3 21.8 Totals advanced, by sector 7 U.S. government..................................... 2.8 9.7 15.1 8.9 11.8 18.3 6.3 11.5 6.1 17.6 19.2 17.4 8 Sponsored credit agencies....................... 21.4 25.6 14.5 20.6 26.9 44.0 20.0 21.2 26.7 27.2 44.9 43.2 9 Monetary authorities............................... 9.2 6.2 8.5 9.8 7.1 7.0 13.7 6.0 10.2 4.1 12.9 1.0 10 Foreign...................................................... .6 11.2 6.1 15.2 39.5 33.5 9.7 20.6 26.4 52.7 26.4 40.5 11 Agency borrowing not included in line 1.. 19.9 23.1 13.5 18.6 26.3 39.0 18.2 19.0 25.0 27.5 41 .5 36.5 Private domestic funds advanced 12 Total net advances........................................ 182.0 155.3 167.3 225.7 278.2 323.6 214.4 237.1 256.8 299.7 314.8 332.5 13 U.S. government securities.................... 18.8 22.4 75.7 61.3 44.1 49.7 67.5 55.1 42.8 45.4 57.7 41.6 14 State and local obligations...................... 14.7 16.5 15.6 19.0 29.2 29.6 19.3 18.7 29.3 29.0 28.5 30.8 15 Corporate and foreign bonds................. 10.0 20.9 32.8 30.5 22.3 23.4 28.6 32.3 17.2 27.3 22.4 24.3 16 Residential mortgages............................. 48.4 26.9 23.2 52.7 83.2 86.9 45.6 59.7 74.9 91.6 84.9 88.9 17 Other mortgages and loans..................... 97.2 75.4 16.1 60.4 103.7 146.6 51.9 68.9 96.0 111.5 135.4 157.8 18 Less: FHLB advances............................. 7.2 6.7 -4.0 -2.0 4.3 12.5 -1.5 -2.5 3.4 5.2 14.1 10.9 Private financial intermediation 19 Credit market funds advanced by private financial institutions.............................. 165.4 126.2 119.9 191.2 249.6 289.6 174.4 207.9 241.1 258.0 283.7 295.5 20 Commercial banking............................... 86.5 64.5 27.6 58.0 85.8 119.2 46.6 69.4 81.1 90.5 120.4 117.9 21 Savings institutions.................................. 36.9 26.9 52.0 71.4 84.8 79.1 70.5 72.4 85.3 84.3 77.2 81.0 22 Insurance and pension funds.................. 23.9 30.0 41.5 51.7 62.0 71.4 53.2 50.2 60.3 63.7 69.4 73.4 23 Other finance............................................ 18.0 4.7 -1.1 10.1 16.9 19.9 4.2 15.9 14.5 19.4 16.6 23.2 24 Sources of funds............................................ 165.4 126.2 119.9 191.2 249.6 289.6 174.4 207.9 241.1 258.0 283.7 295.5 25 Private domestic deposits........................ 86.6 69.4 90.6 121.5 136.0 124.5 108.3 134.6 127.0 145.0 119.4 129.6 26 Credit market borrowing......................... 36.2 13.0 -2.5 9.6 32.0 53.7 10.0 9.2 36.0 28.0 60.3 47.0 27 Other sources............................................. 42.5 43.8 31.9 60.1 81.6 111.4 56.1 64.1 78.2 85.1 104.0 118.9 28 Foreign funds....................................... 5.8 16.8 .9 5.1 11.6 15.7 .7 9.5 .7 22.4 4.0 27.5 29 Treasury balances................................. -1.0 -5.1 -1.7 -.1 4.3 9.7 2.3 -2.5 -1.8 10.4 -.7 20.1 30 Insurance and pension reserves.......... 18.4 26.0 29.6 34.8 48.0 57.0 35.8 33.8 45.5 50.4 55.9 58.2 31 Other, net.............................................. 19.4 6.0 3.1 20.3 17.8 29.0 17.2 23.4 33.7 1.9 44.9 13.1 Private domestic nonfinancial investors 32 Direct lending in credit markets.................. 52.8 42.2 44.9 44.1 60.6 87.7 50.0 38.4 51.6 69.6 91.4 84.0 33 U.S. government securities.................... 19.2 17.5 23.0 19.6 24.6 33.1 25.0 14.1 14.1 35.2 36.3 30.0 34 State and local obligations...................... 5.4 9.3 8.3 6.8 9.1 8.8 7.6 6.0 8.2 10.1 10.8 6.8 35 Corporate and foreign bonds.................. 1.3 4.7 8.0 2.1 1.1 -.9 2.9 1.3 .4 1.8 -2.6 .8 36 Commercial paper.................................... 18.3 2.4 -.8 4.1 9.5 27.8 4.8 3.4 13.0 6.0 28.8 26.9 37 Other.......................................................... 8.6 8.2 6.4 11.5 16.2 18.8 9.7 13.5 15.9 16.5 18.2 19.5 38 Deposits and currency................................... 90.6 75.7 96.8 128.8 144.3 133.8 114.3 143.3 132.6 156.0 129.5 138.0 39 Time and savings accounts....................... 76.1 66.7 84.8 112.2 120.1 117.8 99.5 125.0 110.5 129.7 110.2 125.5 40 Large negotiable CDs......................... 18.1 18.8 -14.1 -14.4 9.3 13.8 -19.8 -9.1 -4.4 22.9 10.3 17.3 41 Other at commercial banks................. 29.6 26.1 39.4 58.1 41.7 42.8 52.0 64.3 45.3 38.2 45.0 40.5 42 At savings institutions......................... 28.5 21.8 59.4 68.5 69.1 61.3 67.3 69.8 69.6 68.7 54.9 67.7 43 Money........................................................ 14.4 8.9 12.0 16.6 24.2 15.9 14.8 18.3 22.1 26.3 19.3 12.5 44 Demand deposits.................................. 10.5 2.6 5.8 9.3 15.9 6.6 8.9 9.6 16.5 15.3 9.2 4.1 45 Currency................................................ 3.9 6.3 6.2 7.3 8.3 9.3 6.0 8.6 5.6 11.0 10.1 8.5 46 Total of credit market instruments, de­ posits and currency............................... 143.4 117.8 141.6 172.9 204.9 221.5 164.3 181.6 184.2 225.6 220.9 222.0 47 Public support rate (in percent)............ 17.4 28.5 22.4 20.8 25.3 26.5 20.2 21.4 23.0 27.2 27.5 25.6 48 Private financial intermediation (in per­ cent) ................................................... 90.9 81.3 71.7 84.7 89.7 89.5 81.3 87.7 93.9 86.1 90.1 88.9 49 Total foreign funds................................... 6.4 28.0 7.1 20.3 51.1 49.2 10.4 30.1 27.1 75.1 30.4 68.0 Memo: Corporate equities not included above 50 Total net issues............................................. 9.2 4.1 10.7 11.9 3.8 3.1 13.4 10.4 1.7 5.8 2.5 3.8 51 Mutual fund shares.................................. -1.2 -.7 -.1 -1.0 -1.0 -.5 -2.4 .4 -.8 -1.2 -.6 -.4 52 Other equities........................................... 10.4 4.8 10.8 12.9 4.8 3.6 15.8 9.9 2.5 7.0 3.1 4.2 53 Acquisitions by financial institutions......... 13.3 5.8 9.7 12.5 6.2 4.9 13.1 12.0 6.1 6.3 1.7 8.0 54 Other net purchases..................................... -4.1 -1.6 1.0 -.7 -2.4 -1.7 .3 -1.6 -4.4 -.5 .8 -4.2 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 □ April 1979 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1978 1979 Measure 1976 1977 1978 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 Industrial production.................................................. 129.8 137.1 145.2 147.1 147.8 148.7 149.6 150.9 150.9 151.0 152.2 Market groupings: 2 Products, total..................................................... 129.3 137.1 144.3 146.2 146.5 147.0 147.7 149.1 149.4 149.7 150.7 3 Final, total...................................................... 127.2 134.9 141.4 143.3 143.7 144.1 144.5 145.6 145.9 146.2 147.3 4 Consumer goods......................................... 136.2 143.4 147.4 148.4 149.0 149.2 149.7 150.6 150.6 150.7 151.9 5 Equipment................................................... 114.6 123.2 133.1 136.3 136.4 137.0 137.3 138.7 139.4 140.1 140.9 6 Intermediate.................................................... 137.2 145.1 155.3 156.4 157.0 158.0 159.3 161.8 162.3 162.9 163.4 7 Materials............................................................ 130.6 136.9 146.5 148.6 149.7 151.4 152.7 153.8 153.3 153.0 154.6 Industry groupings: 8 Manufacturing.................................................... 129.5 137.1 145.6 147.6 148.7 149.5 150.4 151.8 152.0 152.1 153.3 Capacity utilization (percent)1 9 Manufacturing........................................................ 80.2 82.4 84.2 85.0 85.3 85.5 85.8 86.3 86/1 85.9 86.3 10 Industrial materials industries............................... 80.4 81.9 84.9 85.9 86.3 87.1 87.6 86.1 87.5 87.1 87.9 11 Construction contracts2............................................ 190.2 160.5 174.3 177.0 182.0 193.0 173.0 184.0 181.0 231.0 n.a. 12 Nonagricultural employment, total3.......................... 120.7 125.0 130.3 130.9 131.0 131.6 132.3 133.5 133.0 133.5 134.0 13 Goods-producing, total..................................... 100.2 104.2 108.9 109.2 109.3 110.1 111.0 111.7 112.0 112.4 113.0 14 Manufacturing, total.......................................... 97.7 101.0 104.5 104.3 104.3 105.1 105.9 106.6 107.1 107.5 107.8 15 Manufacturing, production-worker.................. 95.3 98.6 102.1 101.6 101.6 102.4 103.5 104.3 104.8 105.3 105.7 16 Service-producing................................................... 131.9 136.4 142.1 142.8 142.9 143.4 144.0 144.2 144.5 145.0 145.5 17 Personal income, total4.............................................. 220.4 244.0 272.5 276.3 278.4 282.2 285.0 288,5 290.3 292.4 295.4 18 Wages and salary disbursements........................... 189.3 230.1 257.5 260.0 262.0 266.1 268.8 271.5 274.4 276.8 280.2 19 Manufacturing........................................................ 177.1 198.6 223.6 224.5 226.4 230.3 234.8 238.0 238.0 241.0 247.0 20 Disnnsahle nersonal incnme...................................... 176.8 194.5 216.7 219.2 226.0 n a 21 Retail sales5............................................................... 203.5 224.4 248.0 251.7 253.5 257.5 262.0 265.3 266.3 n.a. n.a. Prices:6 22 Consumer7.............................................................. 170.5 181.5 195.4 197.8 199.3 200.9 202.0 202.9 204.7 207.1 n.a. 23 Producer finished goods8...................................... 170.3 180.6 194.6 195.3 196.9 199.7 200.6 202.4 205.2 207.4 208.8 1 Ratios of indexes of production to indexes of capacity. Based on data Review (U.S. Department of Labor). Seasonally adjusted data for changes from Federal Reserve, McGraw-Hill Economics Department, and De­ in the price indexes may be obtained from the Bureau of Labor Statistics, partment of Commerce. U.S. Department of Labor. 2 Index of dollar value of total construction contracts, including 7 Beginning Jan. 1978, based on new index for all urban consumers. residential, nonresidential, and heavy engineering, from McGraw-Hill 8 Beginning with the November 1978 Bulletin, producer price data Informations Systems Company, F. W. Dodge Division. in this table have been changed to the BLS series for producer finished 3 Based on data in Employment and Earnings (U.S. Department of goods. The previous data were producer prices for all commodities. Labor). Series covers employees only, excluding personnel in the Armed Forces. Note. Basic data (not index numbers) for series mentioned in notes 4 Based on data in Survey of Current Business U.S. Department of Com­ 3, 4, and 5, and indexes for series mentioned in notes 2 and 6 may also be merce). Series for disposable income is quarterly. found in the Survey of Current Business (U.S. Department of Commerce). 5 Based on Bureau of Census data published in Survey of Current Figures for industrial production for the last two months are preliminary Business (U.S. Department of Commerce). and estimated, respectively. 6 Data without seasonal adjustment, as published in Monthly Labor 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1978 1979 1978 1979 1978 1979 Series Q2 Q3 Q4r Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Manufacturing.............................................. 144.4 147.7 150.6 152.5 172.0 173.7 175.4 177.1 84.0 85.0 r85.9 86.1 2 Primary processing................................... 154.1 158.2 161.9 162.6 178.5 180.2 181.9 183.8 86.3 87.8 89.0 88.5 3 Advanced processing............................... 139.3 142.1 144.5 147.2 168.5 170.2 171.8 173.4 82.7 83.5 84.1 84.9 4 Materials...................................................... 145.1 148.7 152.6 153.6 171.7 173.0 174.2 175.6 84.5 86.0 87.6 87.5 5 Durable goods.......................................... 144.0 150.4 155.2 156.0 175.2 176.3 177.4 178.4 82.2 85.3 87.5 87.4 6 Basic metal........................................... 117.5 124.6 129.4 n.a. 146.1 146.5 146.8 n.a. 80.4 85.1 r88.1 n.a. 7 Nondurable goods................................... 163.2 163.2 166.9 169.3 184.4 186.5 188.5 190.7 88.5 87.5 88.5 88.8 8 Textile, paper, and chemical.............. 167.7 168.4 172.2 175.0 193.1 195.4 197.5 199.8 86.8 86.2 87.2 87.6 9 Textile............................................... 117.1 117.3 119.4 n.a. 144.1 144.7 145.2 n.a. 81.2 81.0 82.2 n.a. 10 Paper................................................. 139.7 134.8 137.2 n.a. 154.8 155.8 156.9 n.a. 90.3 86.5 r87.4 n.a. 11 Chemical........................................... 201.4 204.4 209.5 n.a. 230.1 233.5 236.8 n.a. 87.5 87.5 88.5 n.a. 12 Energy...................................................... 125.5 127.0 128.7 128.7 147.8 148.4 148.9 150.2 84.9 85.6 r86.4 85.7 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 1979 Category 1976 1977 1978 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Household survey data 156,048 158,559 161,058 161,570 161,829 162,033 162,250 162,448 162,633 162,909 2 Labor force (including Armed Forces)1....................................... 96,917 99,534 102,537 103,097 103,199 103,745 103,975 104,277 104,621 104,804 3 Civilian labor force............................. 94,773 97,401 100,420 100,974 101,077 101,628 101,867 102,183 102,527 102,714 Employment: 4 Nonagricultural industries2........ 84,188 87,302 91,031 91,604 91,867 92,476 92,468 93,068 93,335 93,499 5 Agriculture................................... 3,297 3,244 3,342 3,406 3,374 3,275 3,387 3,232 3,311 3,343 Unemployment: 6 Number....................................... 7,288 6,855 6,047 5,964 5,836 5,877 6,012 5,883 5,881 5,871 7 Rate (percent of civilian labor force)..................................... 7.7 7.0 6.0 5.9 5.8 5.8 5.9 5.8 5.7 5.7 8Not in labor force............................... 59,130 59,025 58,521 58,473 58,630 58,288 58,275 58,170 58,012 58,105 Establishment survey data4 9 Nonagricultural payroll employment3 79,382 82,256 85,760 86,163 86,573 87,036 87,281 r87,524 '87,832 *>88,156 10 Manufacturing................................. 18,997 19,647 20,331 20,286 20,436 20,601 20,729 '20,825 '20,902 *20,972 11 Mining............................................. 779 809 837 887 893 903 904 r905 '916 P917 12 Contract construction..................... 3,576 3,833 4,213 4,298 4,341 4,368 4,397 r4,381 '4,383 *>4,454 13 Transportation and public utilities. 4,582 4,696 4,858 4,855 4,922 4,947 4,967 '4,974 '5,004 *>5,031 14 Trade................................................ 17,755 18,492 19,392 19,546 19,632 19,701 19,697 '19,817 '19,910 *>19,999 15 Finance............................................ 4,271 4,452 4,676 4,719 4,737 4,774 4,789 '4,809 '4,828 *>4,844 16 14,551 15,249 15,976 16,127 16,169 16,270 16,327 '16,352 '16,427 *>16,444 17 Government.................................... 14,871 15,079 15,478 15,445 15,443 15,472 15,471 '15,461 '15,462 *>15,495 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 Employ­ annual 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 □ April 1979 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. 1967 1978 1979 Grouping pro­ 1978 por­ avertion age* Jan. Feb. Mar. July Aug. Sept. Oct. Nov. Dec.r Jan. Feb.r Mar.. Index (1967 = 100) MAJOR MARKET 1 100.00 145.2 138.8 139.2 140.9 146.1 147.1 147.8 148.7 149.6 150.9 150.9 151.0 152.2 60.71 144.3 138.5 139.6 141.6 145.0 146.2 146.5 147.0 147.7 149.1 149.4 149.7 150.7 3 Final products........................................ 47.82 141.4 134.9 136.4 138.9 142.2 143.3 143.7 144.1 144.5 145.6 145.9 146.2 147.3 4 Consumer goods................................ 27.68 147.4 141.8 143.8 145.9 147.7 148.4 149.0 149.2 149.7 150.6 150.6 150.7 151.9 5 Equipment.......................................... 20.14 133.1 125.4 126.2 129.1 134.7 136.3 136.4 137.0 137.3 138.7 139.4 140.1 140.9 6 Intermediate products........................... 12.89 155.3 151.6 151.4 151.4 155.6 156.4 157.0 158.0 159.3 161.8 162.3 162.9 163.4 7 Materials.................................................... 39.29 146.5 139.2 138.6 139.9 147.9 148.6 149.7 151.4 152.7 153.8 153.3 153.0 154.6 Consumer goods 8 Durable consumer goods........................ 7.89 158.9 146.5 151.2 157.5 160.9 161.5 160.3 161.6 161.8 161.9 160.9 161.0 164.1 9 Automotive products........................ 2.83 178.6 157.5 162.8 175.8 182.2 182.1 178.3 185.6 189.0 185.1 181.5 179.1 185.4 10 Autos and utility vehicles............. 2.03 172.5 145.5 153.9 171.0 176.7 175.6 170.0 180.5 185.0 179.3 173.7 170.7 179.2 11 Autos.......................................... 1.90 148.5 127.4 131.5 149.7 152.7 151.1 144.4 154.2 159.7 151.8 145.9 144.9 153.7 12 Auto parts and allied goods......... 80 194.0 187.8 185.3 188.5 196.1 198.0 199.8 199.1 199.0 200.1 201.8 200.7 201.1 13 Home goods...................................... 5.06 147.8 140.3 144.6 147.2 148.9 150.0 150.2 148.2 146.5 148.9 149.2 151.0 152.2 14 Appliances, A/C, and TV............. 1.40 132.5 116.1 133.3 135.4 133.7 133.9 134.4 128.7 123.4 129.1 125.9 130.5 131.9 15 1.33 134.5 117.4 135.7 137.9 136.8 135.6 136.9 129.9 124.4 129.8 126.8 131.6 16 1.07 164.3 159.1 160.2 159.3 168.5 167.9 169.0 168.0 164.9 166.8 170.1 171.2 17 Miscellaneous home goods........... 2.59 149.3 145.9 144.3 148.7 149.1 151.3 150.8 150.6 151.3 152.0 153.1 153.9 145.9 18 Nondurable consumer goods.................. 19.79 142.8 139.9 140.8 141.3 142.4 143.1 144.4 144.3 144.8 146.2 146.7 146.6 147.0 19 Clothing.............................................. 4.29 125.5 118.3 121.1 122.4 125.1 126.6 128.9 128.3 130.1 130.2 20 Consumer staples............................... 15.50 147.6 145.9 146.3 146.4 147.3 147.8 148.8 148.8 '\49.2 150.6 151.1 151.5 152.1 ?1 Consumer foods and tobacco....... 8.33 140.1 136.5 138.3 138.7 140.2 140.8 141.2 140.4 141.0 143.0 142.6 143.1 22 Nonfood staples............................. 7.17 156.2 156.6 155.8 155.3 155.5 155.9 157.4 158.5 158.8 159.6 161.0 161.4 161.4 23 Consumer chemical products. .. 2,63 187. 1 187.4 184.3 182.1 186.7 188.0 191.9 191.9 190.7 193.2 196.4 197.2 24 Consumer paper products......... 1.92 118.1 121.4 118.8 118.9 117.5 117.3 118.2 117.6 117.6 116.9 119.1 120.4 25 Consumer energy products....... 2.62 153.2 151.5 154.5 155.0 151.9 152.0 153.3 155.4 156.7 156.9 156.2 155.4 26 Residential utilities................. 1.45 161.5 161.7 167.6 166.9 159.9 160.1 160.9 162.8 162.1 161.1 Equipment 27 Business.................................................. 12.63 162.0 152.6 154.2 157.4 163.8 165.4 165.8 166.9 167.2 168.7 169.7 170.1 171.0 28 Industrial............................................ 6.77 149.9 144.3 144.6 146.9 151.9 152.8 152.7 152.9 151.8 152.2 145.7 155.4 156.1 29 Building and mining...................... 1.44 223.4 211.1 214.9 221.7 228.9 228.1 226.3 226.5 223.8 222.3 222.0 223.0 223.1 30 Manufacturing............................... 3.85 121.9 118.8 117.7 118.3 122.6 123.9 124.4 125.0 124.2 124.7 127.8 128.4 129.0 31 Power.............................................. 1.47 151.0 146.1 145.8 148.8 152.8 154.6 154.8 154.0 153.4 155.6 158.5 159.5 160.9 32 Commercial transit, farm................. 5.86 176.0 162.2 165.5 169.4 177.5 179.9 180.8 182.9 184.9 187.8 186.8 186.9 188.4 33 Commercial.................................... 3.26 208.6 198.5 200.9 202.0 210.6 212.2 214.1 215.1 214.9 217.1 217.9 217.9 218.9 34 Transit............................................. 1.93 133.8 111.1 115.9 126.1 134.9 138.5 138.6 142.6 147.5 151.0 147.6 147.1 149.5 35 Farm............................................... 67 138.9 131.4 134.8 137.0 138.5 141.3 142.0 143.2 145.8 151.5 149.5 151.0 36 7.51 84.5 79.7 79.2 81.9 85.9 87.1 87.1 86.7 87.2 87.9 88.7 89.8 90.1 Intermediate products 37 Construction supplies........................... 6.42 153.3 149.2 148.6 147.9 153.5 154.7 155.6 157.0 159.0 160.8 161.2 161.7 162.0 38 Business supplies................................... 6.47 157.3 153.8 154.2 155.0 157.6 158.2 158.4 159.2 159.9 162.7 163.3 164.1 39 Commercial energy products............ 1.14 166.5 165.5 165.6 164.3 164.1 167.4 169.9 168.8 168.8 170.0 169.2 168.9 Materials 40 20.35 146.9 138.2 137.0 138.6 148.7 150.4 152.1 154.0 154.9 156.8 155.7 155.4 156.8 41 Durable consumer parts................... 4.58 140.3 133.0 131.1 133.1 142.0 142.2 144.8 147.3 147.4 148.4 147.8 146.0 147.5 42 5.44 159.1 148.7 146.6 151.3 161.7 162.9 164.6 166.0 167.6 170.5 170.5 171.4 172.5 43 Durable materials n.e.c..................... 10.34 143.4 134.9 134.6 134.5 144.7 147.6 148.7 150.5 151.6 153.6 151.2 151.2 152.6 44 Basic metal materials..................... 5.57 120.4 110.2 111.0 110.4 121.7 125.4 126.7 128.2 129.1 130.9 125.4 125.0 45 Nondurable goods materials............ 10.47 162.9 155.0 158.5 160.5 162.5 162.7 164.4 165.7 167.8 167.1 168.6 169.0 170.2 46 Textile, paper, and chemical materials..................................... 7.62 167.9 160.7 162.8 165.7 168.3 167.0 170.0 171.0 173.3 172.3 174.0 174.7 176.2 47 Textile materials............................. 1.85 117.2 114.9 115.8 115.1 117.1 116.0 118.7 118.7 120.4 119.0 118.6 117.9 48 Paper materials.............................. 1.62 137.1 135.0 136.8 137.8 135.1 131.5 137.7 137.3 137.6 136.6 133.5 137.4 49 Chemical materials........................ 4.15 202.6 191.4 194.2 199.2 204.0 203.7 205.5 207.6 210.7 210.3 214.3 214.8 50 Containers, nondurable..................... 1.70 160.5 150.4 158.7 158.1 155.4 161.8 161.1 163.4 165.6 165.5 167.6 167.5 51 Nondurable materials n.e.c............... 1.14 133.2 123.6 128.9 129.3 135.7 134.8 131.8 134.5 134.5 135.4 133.7 133.3 52 8.48 125.2 122.2 117.7 117.5 127.9 127.0 126.0 128.0 128.4 129.6 128.5 127.8 130.1 53 Primary energy................................... 4.65 112.7 105.2 101.0 104.5 116.7 115.4 111.8 115.9 117.4 116.9 113.4 111.9 54 Converted fuel materials................... 3.82 140.5 142.8 138.0 133.3 141.6 141.3 143.4 142.7 141.8 145. 1 146.7 147.2 Supplementary groups 55 Home goods and clothing.................... 9.35 137.6 130.2 133.8 135.9 138.0 139.2 140.3 139.1 138.5 140.2 140.5 141.1 141.4 56 12.23 135.1 132.5 130.0 129.8 136.4 136.1 135.9 137.6 138.2 139.3 138.1 137.5 139.1 57 Products............................................. 3.76 157.2 155.8 157.9 157.9 155.6 156.7 158.3 159.3 160.4 161.0 160.2 159.5 58 8.48 125.2 122.2 117.7 117.5 127.9 127.0 126.0 128.0 128.4 129.6 128.3 127.8 130.1 For Note see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 1967 1978 1979 Grouping SIC pro­ 1978 code por­ avertion age*> Jan. Feb. Mar. July Aug. Sept. Oct. Nov. Dec.r Jan. Feb.r Mar. Index (1967 == 100) MAJOR INDUSTRY 12.05. 141.6 137.4 137.7 138.2 142.6 142.5 142.1 144.1 144.5 145.0 143.5 143.1 144.3 'J 6.36 124.2 115.0 114.4 119.3 127.1 126.0 124.1 127.6 128.1 111 .6 123.7 122.1 124.8 Utilities...................................... 5.69 161.0 162.3 163.5 159.5 159.9 160.8 162.3 162.4 162.9 164.3 165.7 166.6 166.2 4 Electric................................... 3.88 182.2 ,83.6 184.3 .178.8 182.1 183.2 184.4 184.1 185.0 186.6 87.95 145.7 138.7 139.4 141.4 146.7 147.6 148.7 149.5 150.4 151.8 152.0 152.1 153.3 6 35.97 154.8 149.8 150.6 151.4 155.0 155.6 157.1 157.4 158.5 159.6 160.6 160.6 161.5 7 51.98 139.3 131.1 131.5 134.4 141.1 142.2 142.8 144.0 144.8 146.4 146.1 146.3 147.7 Mining 8 10 .51 121.0 121.4 119.9 127.6 117.0 117.9 115.6 122.1 125.3 123.9 123.0 124.3 9 Coal............................................ 11,12 .69 115.7 54.8 56.5 78.4 131.7 124.9 114.7 114.7 145.1 146.8 116.0 104.0 124.0 10 Oil and gas extraction.............. 13 4.40 124.7 121.1 120.4 123.3 126.8 126.2 124.9 124.5 124.9 123.8 123.0 122.2 122.8 11 Stone and earth minerals.......... 14 .75 131.1 130.0 129.1 128.2 131.3 131.6 133.8 134.0 132.9 134.2 136.3 136.5 Nondurable manufactures 1? Foods......................................... 20 8.75 142.9 139.3 140.8 141.1 142.9 144.0 144.4 143.2 144.2 145.7 145.8 146.2 n Tobacco products..................... 21 .67 119.2 113.4 117.7 115.6 120.8 118.6 120.6 119.0 121.5 122.0 122.0 14 Textile mill products................. 22 2.68 140.0 137.1 136.4 135.1 141.0 139.5 142.2 142.1 143.9 144.9 144.4 142.7 15 Apparel products...................... 23 3.31 126.3 118.6 121.1 122.8 124.5 127.2 130.9 130.6 131.4 132.9 16 Paper and products................... 26 3.21 144.5 139.9 143.9 144.9 140.5 141.9 142.3 145.8 145.3 147.8 144.9 146.3 148.0 17 Printing and publishing............ 27 4.72 129.9 129.9 128.3 129.1 130.3 129.5 131.0 130.5 132.1 133.0 135.8 136.6 137.8 18 Chemicals and products........... 28 7.74 190.7 184.4 183.7 185.2 192.3 192.2 194.2 195.9 197.6 197.9 200.7 201.3 19 Petroleum products................... 29 1.79 144.2 139.7 139.0 140.1 144.3 144.1 147.1 147.1 148.9 149.9 148.5 146.1 146.9 20 Rubber and plastic products... 30 2.24 254.8 238.7 240.0 243.1 259.1 261.1 263.1 264.1 264.2 267.0 268.1 268.9 21 Leather and oroducts................ 31 .86 74.1 74.5 73.0 72.1 74.5 74.0 74.1 73.8 74.1 74.0 75.7 75.3 Durable manufactures 22 Ordnance, private and govern­ ment ................................... 19,91 3.64 73.7 72.3 71.2 72.7 75.2 75.2 74.3 73.9 73.6 74.2 73.4 73.5 73.1 23 Lumber and products............... 24 1.64 138.9 138.5 135.5 136.5 138.1 136.9 139.2 141.2 142.5 146.0 143.0 140.2 24 Furniture and fixtures.............. 25 1,37 154.7 146.4 150.1 149.5 158.1 159.0 160.7 160.9 157.6 156.7 161.7 162.3 25 Clay, glass, stone products.... 32 2.74 159.2 152.2 152.6 154.2 158.8 159.5 160.9 162.1 166.3 167.7 168.6 168.6 26 Primary metals.......................... 33 6.57 119.0 107.4 106.2 106.1 123.0 126.0 127.9 128.6 129.0 130.4 122.8 122.5 124.9 27 Iron and steel......................... 331,2 4.21 113.2 99.5 96.3 96.4 119.0 120.9 123.2 123.8 124.1 124.5 113.4 113.5 28 Fabricated metal products....... 34 5.93 142.6 136.9 136.9 138.1 144.0 145.8 146.3 146.0 146.9 149.0 151.0 151.7 i 52! 5 29 Nonelectrical machinery........... 35 9.15 155.6 150.1 150.1 151.5 156.1 157.3 158.7 160.3 160.3 161.8 163.7 164.4 165.3 30 Electrical machinery................. 36 8.05 154.3 144.0 146.4 149.5 157.9 156.9 158.3 157.9 159.0 161.9 163.9 165.1 166.4 31 Transportation equipment........ 37 9.27 130.5 116.2 118.4 126.5 132.1 133.4 132.8 137.0 139.3 139.5 137.6 136.9 140.3 32 Motor vehicles and parts.... 371 4.50 168.3 146.6 153.1 165.1 169.7 171.0 168.9 176.8 180.8 179.7 174.4 171.4 177.1 33 Aerospace and miscellaneous transportation equip­ ment ............................... 372-9 4.77 94.9 87.6 85.8 90.1 96.5 98.3 98.9 99.6 100.2 101.7 103.0 104.5 105.7 34 Instruments............................... 38 2.11 171.6 163.4 163.5 168.7 172.2 175.4 174.6 175.3 172.2 179.5 180.4 181.1 182.5 35 Miscellaneous manufactures... 39 1.51 153.3 153.0 151.8 153.7 153.2 153.8 154.1 153.9 152.1 153.7 154.8 156.3 157.0 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Pro Hurts, total............................... 1507.4 609.6 582.0 591.2 601.1 610.3 613.3 613.6 621.3 625.3 632.0 630.2 630.9 635.1 37 Final........................................... 1590.9 469.3 445.1 454.4 463.5 469.6 472.2 471.8 478.8 481.6 486.6 484.1 484.6 487.6 38 Consumer goods................... 1277.5 324.0 311.2 318.6 321.6 323.4 324.7 324.4 328.1 330.8 332.3 331.3 330.6 332.2 39 Equipment............................. U13.4 145.3 133.9 135.8 142.0 146.4 147.5 147.7 150.6 150.9 154.3 152.8 154.0 155.3 40 Intermediate............................... H16.6 140.4 136.7 137.0 137.5 140.7 141.4 141.9 142.6 144.0 145.6 145.8 146.2 147.7 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.), December 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics □ April 1979 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1978 1979 1976 1977 1978 Item Aug. Sept. Oct. Nov. Dec. Jan.' Feb. Private residential real estate activity (thousands of units) NEW UNITS 1,296 1,677 1,658 1,563 1,731 1,729 1,724 1,664 1,324 1,321 2 1-family............................................ 894 1,126 1,078 1,020 1,092 1,135 1,114 1,149 841 787 3 2-or-more-family............................. 402 551 581 543 639 592 610 515 483 534 4 Started................................................. 1,538 1,986 2,019 2,004 2,024 2,054 2,107 2,062 1,699 1,411 5 1-family........................................... 1,163 1,451 1,433 1,431 1,432 1,436 1,502 1,529 1,148 964 6 2-or-more-family............................. 377 535 586 585 612 636 597 533 521 447 7 Under construction, end of period 1 1,147 1,442 1,355 1,303 1,311 1,320 1,337 1,355 1,378 n.a. 8 1-family........................................... 655 829 1,378 786 784 781 791 802 821 n.a. 9 2-or-more-family............................. 492 613 553 517 526 539 545 553 556 n.a. 10 Completed............................................ 1,362 1,652 1,866 1,948 1,900 1,883 1,885 1,872 1,814 n.a. 11 1-family........................................... 1,026 1,254 1,368 1,363 1,370 1,414 1,375 1,405 1,314 n.a. 12 2-or-more-family............................. 336 398 498 584 530 468 510 467 500 n.a. 13 Mobile homes shipped....................... 246 277 276 283 272 286 280 303 311 264 Merchant builder activity in 1-family units: 14 Number sold....................................... 639 819 817 778 796 900 '803 '787 748 663 15 Number for sale, end of period1........ 433 407 423 418 417 407 412 '414 415 415 Price (thous. of dollars)2 Median: 16 Units sold.................................... 44.2 48.9 55.9 56.1 57.3 58.3 58.8 59.9 60.2 61.1 17 Units for sale............................... 41.6 48.2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Average: 18 Units sold.................................... 48.1 54.4 62.7 63.0 64.4 65.7 '66.3 '67.1 67.9 70.0 EXISTING UNITS (1-family) 19 Number sold....................................... 3,002 3,572 3,905 4,080 3,950 4,290 4,350 4,160 3,710 3,620 Price of units sold (thous. of dollars):2 20 Median............................................ 38.1 42.9 48.7 50.3 50.2 50.1 50.7 50.9 52.0 51.9 21 Average........................................... 42.2 47.9 55.1 57.5 57.7 57.3 57.4 58.1 59.8 59.5 Value of new construction 4 (millions of dollars) CONSTRUCTION 22 Total put in place............................... 148,778 172,552 '202,219 '208,434 '209,833 '211,984 '215,827 '218,529 '208,600 205,482 110,416 134,723 '157,455 '160,272 ' 161,863 '164,096 '167,931 '170,966 '162,260 164,262 24 Residential....................................... 60,519 80,957 '93,088 '94,811 '94,682 '95,162 '97,594 '98,793 '92,188 94,133 25 Nonresidential, total...................... 49,897 53,766 '64,367 '65,461 '67,181 '68,934 '70,337 '72,173 '70,072 70,129 Buildings: 26 Industrial................................. 7,182 7,713 '10,762 12,043 12,634 12,627 12,529 13,273 '12,512 12,983 27 Commercial............................. 12,757 14,789 '18,280 18,835 18,926 19,410 20,294 20,049 '19,272 18,782 28 Other........................................ 6,155 6,200 '6,659 6,721 6,686 6,667 6,877 6,922 '6,598 6,328 29 Public utilities and other............ 23,803 25,064 '28,666 '27,862 '28,935 '30,230 '30,637 '31,929 '31,690 32,036 30 Public.................................................. 38,312 37,828 '44, 762 ' 48,162 47,970 '47,888 '47,897 '47,563 '46,339 41,220 31 Military............................................ 1,521 1,517 1,462 1,520 1,615 '1,409 '1,415 '1,442 '1,621 1,438 32 Highway.......................................... 9,439 9,280 8,627 11,427 10,862 11,428 10,956 11,176 n.a. n.a. 33 Conservation and development... 3,751 3,882 3,697 5,231 5,660 3,851 4,593 4,357 n.a. n.a. 34 Other3.............................................. 23,601 23,149 23,503 29,984 29,833 '31,200 30,933 30,588 n.a. n.a. 1 Not at annual rates. Note. Census Bureau estimates for all series except (a) mobile homes 2 Not seasonally adjusted. which are private, domestic shipments as reported by the Manufactured 3 Beginning Jan. 1977 Highway imputations are included in Other. Housing Institute and seasonally adjusted by the Census Bureau, and 4 Value of new construction data in recent periods may not be strictly (b) sales and prices of existing units, which are published by the Na­ comparable with data in prior periods due to changes by the Bureau of tional Association of Realtors. All back and current figures are avail­ the 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 1978 1978 1979 Feb. 1978 1979 1979 Feb. Feb. (1967 Mar. June Sept. Dec. Oct. Nov. Dec. Jan. Feb. = 100)2 Consumer prices 3 1 All items........................................................ 6.4 9.9 8.9 10.7 8.5 8.5 .8 .6 .6 .9 1.2 207.1 2 Commodities................................................. 5.4 10.0 8.5 10.5 7.3 9.6 .8 .7 .8 1.1 1.2 198.3 3 Food........................................................ 7.6 13.0 14.9 18.3 4.8 10.2 .9 .6 1.0 1.4 1.6 228.2 4 Commodities less food............................. 4.5 8.8 5.8 7.2 8.3 9.6 .7 .7 .8 .9 1.0 183.7 5 Durable................................................. 4.7 9.8 7.9 9.0 9.1 11.3 .8 1.0 .8 .9 1.0 183.6 5.8 10.2 3.8 5.5 6.9 6.7 .5 .5 .6 1.1 1.5 204.0 7 Services......................................................... 7.8 9.7 9.1 11.0 10.3 7.2 .9 .5 .4 .5 1.1 223.3 6.3 7.1 6.5 8.2 7.3 7.7 .6 .7 .6 .3 .4 171.0 9 Services less rent...................................... 8.1 10.2 9.5 11.3 10.8 7.1 .9 .4 .4 .6 1.1 232.9 Other groupings: 10 All items less food................................... 6.1 9.3 7.6 8.9 9.3 8.5 .8 .6 .6 .8 1.0 201.8 11 All items less food and energy............... 6.2 9.1 6.3 10.4 9.7 7.7 .8 .7 .4 .5 .9 198.8 12 Homeownership....................................... 9.2 13.5 11.4 13.2 14.6 10.9 1.4 .8 .4 .8 1.8 245.6 Producer prices, formerly Wholesale prices 13 Finished goods............................................. 6.7 10.0 8.7 10.3 7.4 10.1 .8 .9 '1.3 *■1.0 1.0 207.4 14 Consumer.................................................. 6.4 10.7 9.5 10.6 7.5 10.8 .8 r.6 M.2 1.4 1.2 206.1 15 Foods.................................................... 7.9 12.5 16.8 11.4 4.9 15.3 1.6 r. 8 n. 2 1.8 1.6 224.6 16 Excluding foods.................................... 7.5 8.4 5.3 10.5 8.8 8.4 .4 r.6 'l.i 1.2 .9 194.8 17 Capital equipment.................................... 5.6 9.6 7.1 9.1 7.0 8.8 .6 r.8 r. 6 1.0 .8 210.5 18 Materials...................................................... 5.9 11.6 11.0 9.9 7.5 13.0 1.5 .9 .7 1.4 1.6 236.6 19 Intermediate1............................................ 6.8 8.9 8.1 7.2 6.9 10.8 1.1 .9 r.6 1.2 .9 228.9 Crude: 20 Nonfood................................................ 5.4 19.0 10.7 14.9 16.9 19.6 1.7 rl. 7 1.2 1.7 2.8 321.0 21 Food...................................................... 3.8 21.0 25.1 26.6 2.8 21.0 3.7 r .9 r. 3 2.8 .2 243.6 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 □ April 1979 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1977 1978 1976 1977 1978' Account Q3 Q4 Ql Q2 Q3 Q4' Gross national product 1 1,700.1 1,887.2 2,107.6 1,916.8 1,958.1 1,992.0 2,087.5 2,136.1 2,214.8 By source 1,090.2 1,206.5 1,340.1 1,214.5 1,255.2 1,276.7 1,322.9 1,356.9 1,403.9 3 Durable goods.................................................. 156.6 178.4 197.5 ill A 187.2 183.5 197.8 199.5 209.1 4 Nondurable goods............................................ 442.6 479.0 526.5 479.7 496.9 501.4 519.3 531.7 553.4 5 Services.............................................................. 491.0 549.2 616.2 557.5 571.1 591.8 605.8 625.8 641.4 243.0 297.8 345.6 309.7 313.5 322.7 345.4 350.1 364.0 7 Fixed investment............................................... 232.8 282.3 329.6 287.8 300.5 306.0 325.3 336.5 350.5 8 164.6 190.4 222.6 193.5 200.3 205.6 220.1 227.5 237.1 9 Structures................................................... 57.3 63.9 77.8 65.4 61A 68.5 76.6 80.9 85.1 10 Producers’ durable equipment................. 107.3 126.5 144.8 128.1 132.8 137.1 143.5 146.6 152.0 11 Residential structures................................... 68.2 91.9 107.0 94.3 100.2 100.3 105.3 109.0 113.4 12 Nonfarm.................................................... 65.8 88.9 103.8 91.2 97.5 97.3 102.1 105.7 110.2 13 Change in business inventories....................... 10.2 15.6 16.0 21.9 13.1 16.7 20.1 13.6 13.5 14 Nonfarm........................................................ 12.2 15.0 16.7 22.0 10.4 16.9 22.1 14.6 13.4 15 Net exports of goods and services......................... 7.4 -11.1 -12.0 — 7.0 -23.2 -24.1 -5.5 -10.7 -7.6 16 Exports.............................................................. 163.2 175.5 204.8 180.8 172.1 181.7 205.4 210.1 221.9 17 Imports.............................................................. 155.7 186.6 216.8 187.8 195.2 205.8 210.9 220.8 229.5 18 Government purchases of goods and services.... 359.5 394.0 433.9 399.5 412.5 416.7 424.7 439.8 454.5 19 Federal............................................................... 129.9 145.1 153.8 146.8 152.2 151.5 147.2 154.0 162.5 20 State and 1 ocal.................................................. 229.6 248.9 280.2 252.7 260.3 265.2 277.6 285.8 292.0 By major type of product 21 Final sales, total.................................................... 1,689.9 1,871.6 2,091.6 1,894.9 1,945.0 1,975.3 2,067.4 2,122.5 2,201.3 22 Goods................................................................. 760.3 832.6 918.4 844.7 859.6 861.8 912.2 927.3 972.5 23 Durable.......................................................... 304.6 341.3 376.8 346.5 347.4 351.2 375.8 380.1 400.1 24 Nondurable.................................................... 455.7 491.3 541.7 498.2 512.2 510.6 536.4 547.2 572.4 25 Services.............................................................. 778.0 862:8 962.5 875.3 893.6 926.4 952.0 973.7 997.7 26 Structures.......................................................... 161.9 191.8 226.7 196.8 204.9 203.8 223.4 235.0 244.7 27 Change in business inventories........................... 10.2 15.6 16.0 21.9 13.1 16.7 20.1 13.6 13.5 28 Durable goods.................................................. 5.3 8.4 11.7 11.9 6.3 14.8 10.8 10.2 10.8 29 Nondurable goods............................................ 4.9 7.2 4.3 10.0 6.8 1.9 9.3 3.4 2.7 30 1,271.0 1,332.7 1,385.7 1,343.9 1,354.5 1,354.2 1,382.6 1,391.4 1,414.7 National income 31 1,359.2 1,515.3 1,703.8 1,537.6 1,576.9 1,603.1 1,688.1 1,728.4 1,795.6 32 Compensation of employees................................ 1,036.8 1,153.4 1,301.4 1,165.8 1,199.7 1,241.0 1,287.8 1,317.1 1,359.8 33 Wages and salaries............................................ 890.1 983.6 1,101.0 993.6 1,021.2 1,050.8 1,090.2 1,113.4 1,149.4 34 Government and government enterprises .. 187.6 200.8 216.1 201.7 208.1 211.4 213.9 216.8 222.3 35 Other.............................................................. 702.5 782.9 884.8 791.9 813.1 839.3 876.3 896.6 927.1 36 Supplement to wages and salaries..................... 146.7 169.8 200.5 172.2 178.4 190.2 197.6 203.6 210.4 37 Employer contributions for social insurance............................................ 69.7 79.4 94.5 79.9 82.4 90.2 93.6 95.7 98.6 38 Other labor income...................................... 77.0 90.4 105.9 92.2 96.1 100.0 104.0 107.9 111.8 39 Proprietors* income1.............................................. 88.6 99.8 113.2 97.2 107.3 105.0 110.1 114.5 123.0 40 Business and professional1............................... 70.2 79.5 87.8 80.8 82.3 83.1 86.1 89.6 92.6 41 Farm1................................................................ 18.4 20.3 25.3 16.5 25.1 21.9 24.0 25.0 30.4 42 Rental income of persons2................................... 22.5 22.5 23.4 22.4 22.7 22.8 22.2 24.3 24.4 43 Corporate profits1................................................ 127.0 144.2 159.6 154.8 148.2 132.6 163.4 165.2 177.0 44 Profits before tax 3............................................ 155.9 173.9 202.1 177.5 178.3 172.1 205.5 205.4 225.3 45 Inventory valuation adjustment....................... -14.5 -14.8 -24.4 -7.7 -14.8 -23.5 -24.9 -20.9 -28.4 46 Capital consumption adjustment..................... -14.4 -14.9 -18.1 -15.0 -15.3 -16.1 -17.2 -19.3 -19.9 47 Net interest....................................................... 84.3 95.4 106.3 97.3 99.0 101.7 104.6 107.4 111.4 1 With inventory valuation and capital consumption adjustments. 3 For after-tax profits, dividends, and the like, 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 1976 1977 1978r Account Q3 Q4 Ql Q2 Q3 Q4r Personal income and saving 1 Total personal income........................................... 1,380.9 1,529.0 1,708.0 1,543.7 1,593.0 1,628.9 1,682.4 1,731.7 1,789.0 2 Wage and salary disbursements............................. 890.1 983.6 1,100.9 993.6 1,021.2 1,050.8 1,090.2 1,113.2 1,149.4 3 Commodity-producing industries.................... 307.5 343.7 390.2 348.3 357.1 365.9 387.0 396.4 411.3 4 Manufacturing............................................... 237.5 266.3 299.9 269.3 277.3 286.9 296.1 302.0 314.4 5 Distributive industries....................................... 216.4 239.1 268.9 241.2 247.5 257.0 266.4 271.6 280.4 6 Service industries.............................................. 178.6 200.1 225.8 202.3 208.5 216.5 222.8 228.5 235.4 7 Government and government enterprises....... 187.6 200.8 216.1 201.7 208.1 211.4 213.9 216.7 222.3 8 Other labor income.............................................. 77.0 90.4 105.9 92.2 96.1 100.0 104.0 107.9 111.8 9 Proprietors’ income1.............................................. 88.6 99.8 113.2 97.2 107.3 105.0 110.1 114.5 123.0 10 Business and professional1............................... 70.2 79.5 87.8 80.8 82.3 83.1 86.1 89.6 92.6 11 Farm1................................................................ 18.4 20.3 25.3 16.5 25.1 21.9 24.0 25.0 30.4 12 Rental income of persons2................................... 22.5 22.5 23.4 22.4 22.7 22.8 22.2 24.3 24.4 13 Dividends.............................................................. 37.9 43.7 49.3 44.1 46.3 47.0 48.1 50.1 51.9 14 Personal interest income....................................... 126.3 141.2 159.0 143.6 146.0 151.4 156.3 161.7 166.6 15 Transfer payments................................................ 193.9 208.8 226.0 211.9 215.9 219.2 220.6 230.4 233.9 16 Old-age survivors, disability, and health insurance benefits...................................... 92.9 105.0 117.4 108.5 110.1 112.1 113.7 121.1 122.7 17 Less: Personal contributions for social insurance.................................................... 55.5 61.0 69.7 61.4 62.6 67.2 69.2 70.5 72.1 18 Equals: Personal income.................................... 1,380.9 1,529.0 1,708.0 1,543.7 1,593.0 1,628.9 1,682.4 1,731.7 1,789.0 19 Less: Personal tax and nontax payments.... 196.5 226.0 256.2 224.6 233.3 237.3 249.1 263.2 275.1 20 Equals: Disposable personal income................ 1,184.4 1,303.0 1,451.8 1,319.1 1,359.6 1,391.6 1,433.3 1,468.4 1,513.9 21 Less: Personal outlays..................................... 1,116.3 1,236.1 1,374.9 1,244.8 1,285.9 1,309.2 1,357.0 1,392.5 1,440.9 22 Equals: Personal saving..................................... 68.0 66.9 76.9 74.3 73.7 82.4 76.3 76.0 73.0 Memo items : Per capita (1972 dollars): 23 Gross national product..................................... 5,906 6,144 6,340 6,191 6,226 6,215 6,334 r6,360 6,452 24 Personal consumption expenditures................ 3,808 3,954 4,080 3,953 4,030 4,009 4,060 r4,092 4,159 25 Disposable personal income............................. 4,136 4,271 4,421 4,293 4,365 4,370 4,399 4,428 4,485 26 Saving rate (percent)........................................... 5.7 5.1 5.3 5.6 5.4 5.9 5.3 5.2 4.8 Gross saving 27 Gross private saving.............................................. 270.7 290.8 320.2 310.7 304.3 305.4 319.9 325.7 329.9 28 Personal saving.................................................. 68.0 66.9 76.9 74.3 73.7 82.4 76.3 76.0 73.0 29 Undistributed corporate profits1..................... 24.8 28.7 26.3 38.0 28.0 15.6 30.3 29.0 30.5 30 Corporate inventory valuation adjustment.... -14.5 -14.8 -24.4 -7.7 -14.8 -23.5 -24.9 -20.9 -28.4 Capital consumption allowances: 31 Corporate...................................................... 111.5 120.9 132.5 122.6 124.6 127.4 130.5 134.7 137.4 32 Noncorporate................................................ 66.3 74.3 84.4 75.9 77.9 79.9 82.8 86.1 89.0 33 Waee accruals less disbursements................... 34 Government surplus, or deficit (—), national income and product accounts......................... -33.2 -18.6 -1.6 -25.2 -29.6 -21.1 6.2 .6 8.2 35 Federal.............................................................. -53.8 -48.1 -29.9 -56.4 -58.6 -52.6 -23.6 -22.8 -20.6 36 State and local.................................................. 20.7 29.6 28.3 31.2 29.0 31.5 29.8 23.4 28.8 37 Capital grants received by the United States, net.................................................................. 38 Investment............................................................. 241.7 276.9 320.4 292.6 279.5 286.4 326.6 326.6 342.0 39 Gross private domestic..................................... 243.0 297.8 345.6 309.7 313.5 322.7 345.4 350.1 364.0 40 Net foreign........................................................ -1.2 -20.9 -25.2 -17.1 -34.1 -36.3 -18.9 -23.5 -22.1 41 Statistical discrepancy.......................................... 4.2 4.7 1.7 7.1 4.8 2.2 .5 .4 3.9 1 With inventory valuation and capital consumption adjustments. Source. Survey of Current Business (U.S. Dept, of Commerce). 2 With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics □ April 1979 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1977 1978 Item credits or debits 1976 1977 1978 Q4 Ql Q2 Q3 Q4 1Merchandise exports............................................................... 114,694 120,576 141,844 29,637 30,787 35,256 36,486 39,315 2 Merchandise imports.............................................................. 124,047 151,706 175,988 39,009 42,707 43,125 44,478 45,678 3 Merchandise trade balance2............................................... -9,353 -31,130 -34,144 -9,372 -11,920 -7,869 -7,992 -6,363 4 Military transactions, net....................................................... 312 1,334 531 5 210 444 12 -136 15,933 17,507 19,915 3,812 4,877 4,581 4,878 5,580 6 Other service transactions, net............................................... 2,469 1,705 2,814 482 532 835 666 781 7 Balance on goods and services3,4............................................ 9,361 -10,585 -10,885 -5,072 -6,302 -2,009 -2,436 -138 8 Remittances, pensions, and other transfers........................... -1,878 -1,932 -2,048 -473 -504 -536 -496 -513 9 U.S. government grants (excluding military)....................... -3,145 -2,776 -3,028 — 591 -778 -781 -779 -691 10 Balance on current account3.................................................... 4,339 -15,292 -15,961 -6,136 -7,584 -3,326 -3,711 -1,342 11 Not seasonally adjusted3..................................................... -5,245 -6,382 -2,803 -6,326 -449 12 Change in U.S. government assets, other than official reserve assets, net (increase, —)..................................... -4,213 -3,679 -4,657 -838 -896 -1,176 -1,498 -1,086 -2,530 -231 872 246 329 115 182 14 Gold..................................................................................... -118 -65 -60 -65 15 Special Drawing Rights (SDRs)........................................ -78 -121 1,249 -29 -16 -104 -43 1,412 16 Reserve position in International Monetary Fund (IMF).. -2,212 -294 4,231 42 324 437 195 3,275 17 Foreign currencies............................................................... -240 302 -4,543 47 -62 -4 -37 -4,440 18 Change in U.S. private assets abroad (increase, —)3............ -43,865 -30,740 -54,963 -13,862 -14,417 -5,320 -8,833 -26,394 19 Bank-reported claims.......................................................... -21,368 -11,427 -33,957 -8,750 -6,270 -503 -5,622 -21,562 20 Nonbank-reported claims..................................................... -2,030 -1,700 -2,256 -1,184 —2,222 267 -36 -265 21 Long-term......................................................................... 5 25 33 -279 -57 80 62 -52 22 Short-term........................................................................ -2,035 -1,725 -2,289 -905 -2,165 187 -98 -213 23 U.S. purchase of foreign securities, net............................. -8,852 -5,398 -3,389 -731 -949 -1.103 -467 -870 24 U.S. direct investments abroad, net3................................. -11,614 -12,215 -15,361 -3,197 -4,976 -3,981 -2,708 -3,697 25 Change in foreign official assets in the United States Cincrease, +)..................................................................... 18,073 37,124 33,967 15,543 15,760 -5,685 4,852 19,040 26 U.S. Treasury securities...................................................... 9,333 30,294 24,063 12,900 12,965 -5,728 3,029 13,797 27 Other U.S. government obligations.................................. 573 2,308 656 973 117 211 443 -115 28 Other U.S. government liabilities 5................................... 4,993 1,644 2,810 390 804 -312 350 1,968 29 Other U.S. liabilities reported by U.S. banks................... 969 773 5,043 909 1,456 -493 946 3,134 30 Other foreign official assets6.............................................. 2,205 2,105 1,395 371 418 637 84 256 31 Change in foreign private assets in the United States (increase, +)3.................................................................. 18,897 13,746 29,293 4,522 2,336 6,090 10,637 10,230 32 U.S. bank-reported liabilities.............................................. 10,990 6,719 16,860 3,143 -314 1,836 7,965 7,373 33 U.S. nonbank-reported liabilities......................................... -507 257 1,676 425 495 248 986 -53 34 Long-term......................................................................... -958 -620 -49 -242 38 -68 106 -125 35 Short-term........................................................................ 451 877 1,725 667 457 316 880 72 36 Foreign private purchases of U.S. Treasury securities, net................................................................................. 2,783 563 2,248 -299 881 847 -1,053 1,573 37 Foreign purchases of other U.S. securities, net................ 1,284 2,869 2,899 803 462 1,308 533 596 38 Foreign direct investments in the United States, net3....... 4,347 3,338 5,611 450 812 1,852 2,206 741 39 Allocation of SDRs............................................................. 40 Discrepancy.............................................................................. 9,300 -927 11,449 771 4,555 9,087 -1,562 -630 41 Owing to seasonal adjustments............................... 1,445 917 108 -2,455 1,431 42 Statistical discrepancy in recorded data before seasonal adjustment.................................................................... 9,300 -927 11,449 -674 3,638 8,979 893 -2,061 Memo items: Changes in official assets: 43 U.S. official reserve assets (increase, —)......................... —2,530 -231 872 246 329 115 182 44 Foreign official assets in the United States (increase, +).. 13,080 35,480 31,157 15,153 14,956 -5,373 4,502 17,072 45 Changes in Organization of Petroleum Exporting Countries (OPEC) official assets in the Unites States (part of line 25 above).............................................................. 9,581 6,733 -570 1,024 1,963 -2,838 -1,592 1,897 46 Transfers under military grant programs (excluded from lines 1, 4, and 9 above)................................................... 373 194 274 71 75 57 69 73 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 5 Primarily associated with military sales contracts and other transac­ U.S. Virgin Islands, and it excludes military exports, which are part of tions arranged with or through foreign official agencies. line 4. 6 Consists of investments in U.S. corporate stocks and in debt securi­ 3 Includes reinvested earnings of incorporated affiliates. ties of private corporations and state and local governments. 4 Differs from the definition of “net exports of goods and services” in the national income and product (GNP) account. The GNP definition Note. Data are from Bureau of Economic Analysis, Survey of Current Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Trade and Reserve Assets A55 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1978 1979 Item 1976 1977 1978 Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments........................................ 115,156 121,150 143,575 12,294 13,274 12,901 13,451 13,282 13,132 13,507 2 GENERAL IMPORTS including merchandise for immediate con­ sumption plus entries into bonded warehouses...................................... 121,009 147,685 172,026 14,133 14,820 14,852 14,825 15,032 16,231 14,806 3 Trade balance...................................... -5,853 -26,535 -28,451 -1,839 -1,545 -1,950 -1,374 -1,749 -3,099 -1,299 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. Department of Commerce, Bureau of the Census). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1978 1979 Type 1976 1977 1978 Sept. Oct. Nov. Dec. Jan. Feb. Mar.p 1 Total.................................................... 18,747 19,312 18,650 18,850 18,935 17,967 18,650 20,468 21,641 3 21,658 2 Gold stock, including Exchange 11,598 11,719 11,671 11,668 11,655 11,642 11,671 11,592 11,544 11,479 3 Special Drawing Rights2................... 2,395 2,629 4,374 2,942 3,097 1,522 1,558 2,661 2,672 3 2,667 4 Reserve position in International 4,434 4,946 1,047 4,214 4,147 1,099 1,047 1,017 1,120 31,121 5 Convertible foreign currencies4......... 320 18 1,558 26 36 3,704 4,374 5,198 6,305 6,391 1 Gold held under earmark at Federal Reserve Banks for foreign and 3 Beginning July 1974, the IMF adopted a technique for valuing the international accounts is not included in the gold stock of the United SDR based on a weighted average of exchange rates for the currencies States; see table 3.24. of 16 member countries. The U.S. SDR holdings and reserve position in 2 Includes allocations by the International Monetary Fund of SDRs as the IMF also are valued on this basis beginning July 1974. follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 4 Beginning November 1978, valued at current market exchange rates. million on Jan. 1, 1972; and $1,103 million on Jan. 1, 1979; plus net transactions in SDRs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics □ April 1979 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 19782 1979 Asset account 1975 1976 1977 July Aug. Sept. Oct. Nov.r Dec. Jan .p All foreign countries 1Total, all currencies............................ 176,493 219,420 258,897 269,542 274,929 287,369 292,305 295,482 305,599 294,586 2 Claims on United States................. 6,743 7,889 11,623 9,254 10,024 14,976 12,169 13,385 16,702 15,205 3 Parent bank................................. 3,665 4,323 7,806 5,096 5,818 10,693 7,879 9,007 12,153 10,462 4 Other............................................ 3,078 3,566 3,817 4,158 4,206 4,283 4,290 4,378 4,549 4,743 5 Claims on foreigners....................... 163,391 204,486 238,848 250,700 254,782 262,063 269,121 271,015 277,579 267,724 6 Other branches of parent bank.. 34,508 45,955 55,772 55,236 58,746 63,493 67,748 68,310 70,210 66,575 7 Banks........................................... 69,206 83,765 91,883 94,659 92,811 95,222 98,104 101,043 102,783 97,729 8 Public borrowers1....................... 5,792 10,613 14,634 23,288 23,354 23,896 23,936 22,993 23,679 23,734 9 Nonbank foreigners.................... 53,886 64,153 76,560 77,517 79,871 79,452 79,333 78,669 80,907 79,686 10 Other assets..................................... 6,359 7,045 8,425 9,588 10,123 10,330 11,015 11,082 11,318 11,657 132,901 167,695 193,764 198,205 200,779 212,063 210,939 218,149 224,131 214,106 12 Claims on United States................. 6,408 7,595 11,049 8,473 9,219 14,168 11,328 12,489 15,744 14,371 13 Parent bank................................. 3,628 4,264 7,692 4,906 5,628 10,535 7,688 8,838 11,967 10,269 14 Other............................................ 2,780 3,332 3,357 3,567 3,591 3,633 3,640 3,651 3,777 4,102 15 Claims on foreigners....................... 123,496 156,896 178,896 185,425 187,041 193,457 194,882 200,679 203,327 194,352 16 Other branches of parent bank.. 28,478 37,909 44,256 43,447 46,326 50,880 52,887 54,632 55,282 51,723 17 Banks........................................... 55,319 66,331 70,786 71,592 69,560 71,892 72,644 76,473 78,367 73,465 18 Public borrowers1....................... 4,864 9,022 12,632 20,291 20,255 20,505 20,301 19,618 19,868 20,103 19 Nonbank foreigners................... 34,835 43,634 51,222 5a, 095 50,900 50,180 49,050 49,956 49,810 49,061 20 Other assets..................................... 2,997 3,204 3,820 4,307 4,519 4,438 A,129 4,981 5,060 5,383 United Kingdom 21 Total, all currencies............................ 74,883 81,466 90,933 92,989 93,333 99,084 101,887 102,032 106,593 100,847 22 Claims on United States................. 2,392 3,354 4,341 2,615 2,624 2,940 3,119 3,706 5,370 3,982 23 Parent bank................................. 1,449 2,376 3,518 1,515 1,595 2,014 2,230 2,119 4,448 2,952 24 Other............................................ 943 978 823 1,100 1,029 926 889 927 922 1,030 25 Claims on foreigners...................... 70,331 75,859 84,016 87,479 87,772 93,364 95,774 95,220 98,137 93,733 26 Other branches of parent bank.. 17,557 19,753 22,017 20,438 21,661 24,691 r26,516 25,802 27,830 25,925 27 Banks........................................... 35,904 38,089 39,899 42,462 40,350 42,677 *■43,926 44,353 45,013 42,543 28 Public borrowers1....................... 881 1,274 2,206 4,637 4,583 4,549 4,692 4,526 4,522 4,560 29 Nonbank foreigners.................... 15,990 16,743 19,895 19,942 21,178 21,447 20,640 20,539 20,772 20,705 30 Other assets..................................... 2,159 2,253 2,576 2,895 2,937 2,780 2,994 3,106 3,086 3,132 31 Total payable in U.S. dollars............. 57,361 61,587 66,635 65,452 64,449 70,008 70,209 71,761 75,860 70,547 32 2,273 3,275 4,100 2,321 2,335 2,598 2,877 3,475 5,113 3,760 33 Parent bank................................. 1,445 2,374 3,431 1,386 1,481 1,895 2,187 2,121 4,386 2,900 34 Other............................................ 828 902 669 935 854 703 690 748 727 860 35 Claims on foreigners....................... 54,121 57,488 61,408 61,938 60,910 66,242 66,132 67,031 69,416 65,393 36 Other branches of parent bank,. 15,645 17,249 18,947 17,438 18,305 20,934 21,377 21,197 22,838 21,185 37 Banks........................................... 28,224 28,983 28,530 29,455 27,268 29,859 29,680 30,565 31,482 29,115 38 Public borrowers1....................... 648 846 1,669 3,660 3,544 3,471 3,595 3,467 3,317 3,350 39 Nonbank foreigners.................... 9,604 10,410 12,263 11,385 11,793 11,978 11,480 11,802 11,779 11,743 40 Other assets..................................... 967 824 1,126 1,193 1,204 1,168 1,200 1,255 1,331 1,394 Bahamas and Caymans 41 45,203 66,774 79,052 82,145 85,654 88,755 86,291 89,559 90,907 87,639 42 Claims on United States................. 3,229 3,508 5,782 5,132 5,620 10,053 7,247 7,460 8,997 9,598 43 Parent bank................................. 1,477 1,141 3,051 2,381 2,751 7,090 4,255 4,398 5,771 6,300 44 Other............................................ 1,752 2,367 2,731 2,751 2,869 2,963 2,992 3,062 3,226 3,298 45 Claims on foreigners........................ 41,040 62,048 71,671 74,988 77,949 76,651 76,868 79,890 79,586 75,687 46 Other branches of parent bank.. 5,411 8,144 11,120 10,292 12,134 12,348 12,618 13,433 12,776 11,385 47 Banks........................................... 16,298 25,354 27,939 29,302 29,749 29,472 30,317 33,060 33,653 31,644 48 Public borrowers1....................... 3,576 7,105 9,109 12,599 12,461 12,362 12,094 11,535 11,520 11,395 49 Nonbank foreigners............... 15,756 21,445 23,503 22,795 23,605 22,469 21,839 21,862 21,637 21,263 50 Other assets..................................... 933 1,217 1,599 2,025 2,085 2,051 2,176 2,209 2,324 2,354 51 Total payable in U.S. dollars............. 41,887 62,705 73,987 76,494 79,701 83,007 80,223 83,570 84,608 81,423 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 2 1979 Liability account 1975 1976 1977 July Aug. Sept. Oct. Nov.' Dec. Jan.* All foreign countries 52 Total, all currencies............................ 176,493 219,420 258,897 269,542 274,929 287,369 292,305 295,482 305,599 294,586 53 To United States............................. 20,221 32,719 44,154 51,583 52,441 49,325 51,506 57,076 58,255 52,376 54 Parent bank................................. 12,165 19,773 24,542 *•27,346 '28,676 24,590 '26,842 31,283 29,841 24,028 5 5 5 6 N O o th n e b r a b n a k n s k .. s . .. i . n .. . U ... n .. i .. t . e .. d .. . S .. t .. a .. t . e .. s .. . . . .. . 1> 0Q ,VfKj7i 11 0Z ,7Q4Af0k 1 O All \ ( '15 8 , , 6 60 2 8 9 '1 7 6 , , 6 1 5 0 9 6 1 1 4 0 , , 6 0 7 6 1 4 '16 8 , , 3 3 0 6 2 2 1 9 6 , , 0 7 8 0 4 9 1 1 2 5 , , 5 8 3 7 8 6 2 8 0 , , 2 0 5 9 3 5 57 To foreigners................................... 149,815 179,954 206,579 209,810 213,974 228,733 231,152 228,748 237,167 231,958 58 Other branches of parent bank.. 34,111 44,370 53,244 53,788 56,955 61,599 '65,010 65,903 68,064 65,335 59 Banks........................................... 72,259 83,880 94,140 88,561 89,234 97,629 95,956 93,749 97,918 92,752 60 Official institutions..................... 22,773 25,829 28,110 31,640 31,461 33,086 32,246 30,922 30,650 31,078 61 Nonbank foreigners.................... 20,672 25,877 31,085 35,821 36,324 36,419 '37,940 38,174 40,535 42,793 62 Other liabilities............................... 6,456 6,747 8,163 8,149 8,514 9,311 9,647 9,658 10,177 10,252 63 Total payable in U.S. dollars............. 135,907 173,071 198,572 202,407 204,938 215,496 215,518 222,738 230,000 220,024 64 To United States............................. 19,503 31,932 42,881 49,668 50,325 47,171 49,273 55,125 56,122 50,348 65 Parent bank................................. 11,939 19,559 24,213 '26,575 '27,784 23,640 '25,907 30,454 28,816 23,089 6 67 6 N O o th n e b r a b n a k n s k .. s . .. i . n .. . U ... n .. i .. t . e .. d .. . S .. t .. a .. t . e .. s .. . . . .. . )J n7 ,5e6 r4 a 1I0Z ,517/51 18,669 { ( '14 8 , , 8 2 0 8 7 6 '1 7 5 , , 2 2 8 55 6 1 9 3 , , 7 8 2 0 4 7 '15 8 , , 3 0 5 0 8 8 1 8 5 , , 8 8 1 5 3 8 1 1 2 5, , 0 28 22 4 1 7 9 , , 9 2 9 67 2 68 To foreigners................................... 112,879 137,612 151,363 148,630 150,478 163,626 161,542 162,644 168,626 164,097 69 Other branches of parent bank.. 28,217 37,098 43,268 42,852 45,620 49,978 52,052 53,409 53,950 51,374 70 Banks........................................... 51,583 60,619 64,872 56,405 55,285 63,271 58,912 58,654 63,215 58,447 71 Official institutions..................... 19,982 22,878 23,972 26,717 26,184 27,367 26,341 25,377 25,118 25,506 72 Nonbank foreigners.................... 13,097 17,017 19,251 22,656 23,389 23,010 24,237 25,204 26,343 28,770 73 Other liabilities............................... 3,526 3,527 4,328 4,109 4,135 4,699 4,703 4,969 5,252 5,579 United Kingdom 74,883 81,466 90,933 92,989 93,333 99,084 101,887 102,032 106,593 100,847 75 To United States........................... 5,646 5,997 7,753 8,011 6,978 8,033 8,347 9,053 10,235 8,134 76 Parent bank............................... 2,122 1,198 1,451 1,959 1,905 1,872 2,176 2,367 2,669 1,586 7 7 7 8 N O o th n e b r a b n a k n s k .. s .. . i . n .. . U ... n .. i .. t . e .. d .. . S .. t .. a .. t . e .. s .. . . . > 3,523 4,798 O, 5V)Z 1 i 2 3 , , 9 06 8 5 7 2 2, , 7 2 8 9 3 0 3 3, , 0 1 1 5 1 0 2 3 , , 9 2 4 2 9 2 3 3 , , 4 2 5 34 2 4 3 , , 3 17 9 1 5 2 3 , , 7 8 1 38 0 79 To foreigners................................. 67,240 73,228 80,736 81,847 82,991 87,678 89,979 89,347 92,697 88,983 80 Other branches of parent bank. 6,494 7,092 9,376 10,098 11,708 12,006 '12,175 13,153 12,928 12,853 81 Banks......................................... 32,964 36,259 37,893 34,859 35,293 37,677 39,277 38,167 40,692 36,629 82 Official institutions................... 16,553 17,273 18,318 20,666 19,863 21,493 21,193 20,182 20,181 19,674 83 Nonbank foreigners.................. 11,229 12,605 15,149 16,224 16,127 16,502 '17,334 17,845 18,896 19,827 84 Other liabilities............................. 1,997 2,241 2,445 3,131 3,364 3,373 3,561 3,632 3,661 3,730 85 Total payable in U.S. dollars........... 57,820 63,174 67,573 65,671 64,918 70,227 71,158 72,812 77,030 72,089 86 To United States........................... 5,415 5,849 7,480 7,652 6,606 7,650 7,985 8,666 9,833 7,751 87 Parent bank............................... 2,083 1,182 1,416 1,926 1,852 1,805 2,116 2,321 2,618 1,539 88 Other banks in United States.. ( 2,904 2,209 3,092 2,902 3,178 4,307 2,618 89 Nonbanks.................................. | 3,332 4,667 6,064 I 2,822 2,545 2,753 2,967 3,167 2,908 3,594 90 To foreigners................................. 51,447 56,372 58,977 56,636 57,015 61,231 61,802 62,631 65,711 62,651 91 Other branches of parent bank. 5,442 5,874 7,505 7,696 9,163 9,317 9,301 10,302 9,764 10,012 92 Banks......................................... 23,330 25,527 25,608 20,659 20,601 22,936 23,260 23,044 26,062 22,107 93 Official institutions................... 14,498 15,423 15,482 17,265 16,113 17,659 17,106 16,317 16,309 15,809 94 Nonbank foreigners.................. 8,176 9,547 10,382 11,016 11,138 11,319 12,135 12,968 13,576 14,723 95 Other liabilities............................. 959 953 1,116 1,383 1,297 1,346 1,371 1,515 1,486 1,687 Bahamas and Caymans 96 Total, all currencies.......................... 45,203 66,774 79,052 82,145 85,654 88,755 86,291 89,559 90,907 87,639 97 To United States........................... 11,147 22,721 32,176 37,041 39,532 34,378 35,676 40,603 38,826 36,921 98 Parent bank............................... 7,628 16,161 20,956 '21,379 '22,940 18,410 '19,402 23,503 20,804 17,021 99 Other banks in United States.. ( 4,587 4,509 5,511 4,415 4,852 6,270 4,323 100 Nonbanks.................................. } 3,520 6,560 11,220 i '11,075 '12,083 10,457 '11,859 12,248 11,752 15,577 101 To foreigners................................. 32,949 42,899 45,292 43,649 44,597 52,574 48,955 47,274 50,239 48,902 102 Other branches of parent bank... 10,569 13,801 12,816 11,165 11,436 14,762 15,635 14,715 16,115 14,240 103 Banks......................................... 16,825 21,760 24,111 21,951 21,884 27,372 22,471 21,922 23,004 22,214 104 Official institutions................... 3,308 3,573 3,000 4,227 4,604 4,477 4,449 4,354 4,208 4,611 105 Nonbank foreigners.................. 2,248 3,765 4,759 6,306 6,673 5,963 6,400 6,283 6,912 7,837 106 Other liabilities............................. 1,106 1,154 1,584 1,455 1,525 1,803 1,660 1,682 1,842 1,816 107 Total payable in U.S. dollars........... 42,197 63,417 74,463 78,131 81,314 84,317 81,324 84,877 86,204 82,903 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 □ April 1979 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1978 1979 Item 1975 1976 1977 Aug. Sept. Oct. Nov. Dec. Jan.p Feb.? A. By type 1 Total i..................................................................... 82,572 95,634 131,097 146,168 145,293 152,463 156,261 162,303 162,605 159,933 2 Liabilities reported by banks in the United States2............................................................. 16,262 17,231 18,003 20,120 19,822 22,300 21,695 23,086 22,588 23,167 3 U.S. Treasury bills and certificates3..................... 34,199 37,725 47,820 56,299 55,014 57,967 62,635 67,650 68,415 65,713 U.S. Treasury bonds and notes: 4 Marketable......................................................... 6,671 11,788 32,164 34,873 35,577 36,153 36,222 35,877 35,987 35,470 5 Nonmarketable4................................................ 19,976 20,648 20,443 20,375 20,304 21,426 20,993 20,970 20,952 20,912 6 U.S. securities other than U.S. Treasury securities5....................................................... 5,464 8,242 12,667 14,501 14,576 14,617 14,716 14,720 14,663 14,671 B. By area 7 Total....................................................................... 82,572 95,634 131,097 146,168 145,293 152,463 156,261 162,303 162,605 159,933 8 Western Europe1................................................... 45,701 45,882 70,748 79,724 80,268 85,294 88,389 92,946 94,371 92,727 9 Canada................................................................... 3,132 3,406 2,334 2,071 1,497 2,619 2,446 2,486 2,150 1,911 10 Latin America and Caribbean.............................. 4,461 4,926 4,649 4,621 3,899 4,611 4,495 5,029 4,297 4,367 11 Asia......................................................................... 24,411 37,767 50,693 56,923 56,883 57,016 57,835 58,656 58,963 57,766 12 Africa...................................................................... 2,983 1,893 1,742 2,036 2,006 2,184 2,301 2,443 2,299 2,371 13 Other countries6.................................................... 1,884 1,760 931 793 740 739 795 743 525 791 1 Includes the Bank for International Settlements. 5 Debt securities of U.S. government corporations and federally 2 Principally demand deposits, time deposits, bankers acceptances, sponsored 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 Department data and on data reported to payable in foreign currencies through 1974) and Treasury bills issued to the Treasury Department by banks (including Federal Reserve Banks) official institutions of foreign countries. and securities 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 tables, bonds and notes payable in foreign currencies. see July 1978 Bulletin, p. 612. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-reported Data A59 3.15 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1978 1979 Item 1975 1976 1977 Aug. Sept. Oct. Nov. Dec. Jan.P Feb.? A. By holder and type of liability 1 All foreigners.......................................................... 95,590 110,657 126,168 140,535 144,116 150,584 158,421 166,267 163,906 163,431 2 Banks’ own liabilities............................................ 63,931 68,593 71,102 75,166 77,711 74,118 76,155 3 Demand deposits............................................... 13,564 16,803 16,104 17,204 17,557 18,264 19,199 17,744 17,201 4 Time deposits1................................................... 10,267 11,347 11,521 12,634 12,154 12,279 12,514 12,298 12,166 12,026 5 Other 2................................................................. 7,234 6,697 9,756 8,645 9,527 8,952 9,197 6 Own foreign offices 3.......................................... 27,960 32,538 31,511 35,744 36,687 35,256 37,731 7 Banks’ custody liabilities4.................................... 76,604 75,523 79,482 83,255 88,556 89,788 87,275 8 U.S. Treasury bills and certificates 5................ 37,414 40,744 48,906 57,264 56,665 59,077 63,434 68,434 69,186 66,663 9 Other negotiable and readily transferable instruments6............................................... 17,198 16,492 17,619 17,424 17,581 18,184 18,303 10 Other................................................................... 2,142 2,366 2,786 2,397 2,541 2,418 2,310 11 Nonmonetary international and regional organizations7................................................ 5,699 5,714 3,274 2,823 3,406 2,929 2,225 2,617 2,312 2,095 12 Banks’ own liabilities.......................................... 808 767 336 417 916 762 506 13 Demand deposits.............................................. 139 290 231 142 144 133 153 330 333 272 14 Time deposits1.................................................. 148 205 139 97 99 116 102 94 88 102 15 Other2............................................................... 569 523 87 161 492 340 131 16 Banks’ custody liabilities4..................................... 2,014 2,639 2,593 1,809 1,701 1,550 1,589 17 U.S. Treasury bills and certificates................. 2,554 2,701 706 368 1,036 403 183 201 183 193 18 Other negotiable and readily transferable instruments6.............................................. 1,645 1,603 2,189 1,625 1,499 1,362 1,393 19 Other................................................................... 1 1 1 1 1 5 3 20 Official institutions8. 50,461 54,956 65,822 76,419 74,836 80,267 84,329 90,737 91,003 88,880 21 Banks’ own liabilities. 9,085 9,455 11,474 10,820 11,732 10,500 11,071 22 Demand deposits... 2,644 3,394 3,528 2,643 3,307 3,046 3,414 3,389 2,702 2,759 23 Time deposits1....... 3,423 2,321 1,797 2,595 2,563 2,399 2,345 2.334 2,288 2,169 24 Other2..................... 3,848 3,585 6,030 5,060 6,008 5,510 6,143 25 Banks’ custody liabilities4................................. 67,334 65,381 68,793 73,510 79,005 80,503 77,809 26 U.S. Treasury bills and certificates5............. 34,199 37,725 47,820 56,299 55,014 57,967 62,635 67,650 68,415 65,713 27 Other negotiable and readily transferable instruments6............................................ 10,831 10,122 10,616 10,768 11,185 11,897 11,905 28 Other............................................................... 205 245 210 107 170 191 191 29 Banks9. 29,330 37,174 42,335 45,532 50,515 51,379 55,273 56,861 54,563 55,805 30 Banks’ own liabilities............ 41,028 45,744 46,425 50,440 52,035 49,812 51,047 31 Unaffiliated foreign banks. 13,068 13,206 14,914 14,696 15,349 14,556 13,316 32 Demand deposits............. 7,534 9,104 10,933 9,229 9,713 10,156 10,068 11,239 10,379 9,426 33 Time deposits1................. 1,873 2,297 2,040 1,390 1,269 1,552 1,735 1,489 1,495 1,336 34 Other2.............................. 2,449 2,223 3,206 2,893 2,621 2,683 2,554 35 Own foreign offices3. 27,960 32,538 31,511 35,744 36,687 35,256 37,731 36 Banks’ custody liabilities4................................. 4,504 4,771 4,955 4,834 4,826 4,751 4,757 37 U.S. Treasury bills and certificates.............. 335 119 141 296 307 381 371 300 302 399 38 Other negotiable and readily transferable instruments6............................................ 2,382 2,536 2,447 2,561 2,417 2,422 2,384 39 Other............................................................... 1,827 1,928 2,126 1,902 2,109 2,027 1,973 40 Other foreigners. 10,100 12,814 14,736 15,761 15,359 16,008 16,593 16,052 16,028 16,652 41 Banks’ own liabilities. 13,009 12,627 12,867 13,490 13,028 13,04-5 13,531 42 Demand deposits... 3,248 4,015 4,304 4,090 4,039 4,222 4,628 4,242 4,330 4,744 43 Time deposits1....... 4,823 6,524 7,546 8,552 8,222 8,213 8,331 8,380 8,295 8,419 44 Other2..................... 368 365 432 531 406 420 368 45 Banks’ custody liabilities4................................. 2,752 2,732 3,141 3,103 3,024 2,983 3,120 46 U.S. Treasury bills and certificates............... 325 198 301 308 326 245 282 285 357 47 Other negotiable and readily transferable instruments6............................................ 2,341 2,231 2,367 2,471 2,480 2,503 2,620 48 Other............................................................... 110 193 448 387 262 195 143 49 Memo: Negotiable time certificates of deposit held in custody for foreigners...................... 10,181 10,043 10,977 10,803 10,926 11,080 10,989 1 Excludes negotiable time certificates of deposit, which are included 6 Principally bankers acceptances, commercial paper, and negotiable in “Other negotiable and readily transferable instruments.” time certificates of deposit. 2 Includes borrowings under repurchase agreements. 7 Principally the International Bank for Reconstruction and Develop­ 3 U.S. banks: includes amounts due to own foreign branches and ment, and the Inter-American and Asian Development Banks. foreign subsidiaries consolidated in “Consolidated Report of Condition” 8 Foreign central banks and foreign central governments and the filed with bank regulatory agencies. Agencies, branches, and majority- Bank for International Settlements. owned subsidiaries of foreign banks: principally amounts due to head 9 Excludes central banks, which are included in “Official institutions.” office or parent foreign bank, and foreign branches, agencies or whollyowned subsidiaries of head office or parent foreign bank. Note. Data for time deposits prior to April 1978 represent short-term 4 Financial claims on residents of the United States, other than long­ only. term securities, held by or through reporting banks. For a description of the changes in the International Statistics tables, 5 Includes nonmarketable certificates of indebtedness (including those 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 □ April 1979 3.15 Continued 1978 1979 Item 1975 1976 1977 Aug. Sept. Oct. Nov. Dec. Jan.P Feb.? B. By area and country 1 95,590 110,657 126,168 140,535 144,116 150,584 158,421 166,267 163,906 163,431 2 Foreign countries.................................................... 89,891 104,943 122,893 137,712 140,710 147,655 156,196 163,650 161,594 161,336 3 Europe.................................................................... 44,072 47,076 60,295 67,340 69,157 73,408 78,418 84.861 83,949 81,615 4 Austria................................................................ 759 346 318 424 431 473 514 506 555 498 5 Belgium-Luxembourg........................................ 2,893 2,187 2,531 2,174 2,368 2,464 2,471 2,546 2,481 2,177 6 Denmark............................................................. 329 356 no 1,593 1,673 1,734 1,827 1 ,946 2,036 2,073 7 Finland................................................................ 391 416 323 416 415 424 388 346 379 357 8 France................................................................. 7,726 4,876 5,269 7,989 8,060 8,421 8,817 8,631 8,377 8,153 9 Germany............................................................. 4,543 6,241 7,239 10,766 11,206 13,345 15,652 17,286 15,800 13,867 10 Greece................................................................. 284 403 603 826 865 887 907 826 653 761 11 Italy..................................................................... 1,059 3,182 6,857 8,055 7,394 7,346 7,761 7,674 8,723 8,056 12 Netherlands........................................................ 3,407 3,003 2,869 3,240 2,756 2,523 2,518 2,402 2,536 2,786 13 Norway............................................................... 994 782 944 1,516 1,208 1,210 1,102 1 ,271 1,411 1,445 14 Portugal.............................................................. 193 239 273 324 521 386 379 330 255 248 15 Spain................................................................... 423 559 619 752 765 702 885 778 759 704 16 Sweden................................................................ 2,277 1,692 2,712 3,355 3,341 3,187 3,216 3,131 2,955 2,656 17 Switzerland................................................... 8,476 9,460 12,343 11,987 12,997 14,314 15,810 18,820 20,051 19,975 18 Turkey................................................................ 118 166 130 137 226 164 163 157 141 141 19 United Kingdom............................................... 6,867 10,018 14,125 10,956 11,807 12,438 12,826 14,214 13,080 13,631 20 Yugoslavia.......................................................... 126 189 232 149 167 158 190 254 174 184 21 Other Western Europe1................................. 2,970 2,673 1,804 2,427 2,631 2,887 2,719 3,334 3,283 3,667 22 U.S.S.R............................................................... 40 51 98 46 65 82 73 82 150 62 23 Other Eastern Europe2................................. 197 236 236 210 262 262 198 325 150 172 24 Canada.................................................................... 2,919 4,659 4,607 5,890 5,101 7,418 8,001 6,963 6,575 7,036 25 Latin America and Caribbean......................... 15,028 19,132 23,670 27,261 29,216 28,470 31,111 31,470 30,863 32,283 26 Argentina............................................................ 1,146 1,534 1,416 1,453 1,393 1,650 1,504 1,498 1,696 1,812 27 Bahamas.............................................................. 1,874 2,no 3,596 4,601 7,251 4,880 6,309 6,615 7,310 7,276 28 Bermuda............................................................. 184 218 321 372 409 387 425 428 386 463 29 Brazil................................................................... 1,219 1,438 1,396 1,382 1,275 1,441 1,234 1,130 1,102 1,154 30 British West Indies...................................... 1,311 1,877 3,998 5,474 5,380 5,919 6,692 5,978 5,715 6,846 31 Chile................................................................... 319 337 360 346 351 333 341 399 376 357 32 Colombia........................................................... 417 1,021 1,221 1,486 1,431 1,483 1,612 1,756 1,769 1,867 33 Cuba................................................................... 6 6 6 10 7 7 7 13 7 13 34 Ecuador.............................................................. 120 320 330 347 405 369 348 322 321 274 35 Guatemala3........................................................ 419 347 368 357 416 352 386 36 Jamaica3............................................................ 59 78 57 43 52 72 43 37 Mexico.............................................................. 2,070 2,870 2,876 3,171 3,112 3,101 3,413 3,397 3,178 3,160 38 Netherlands Antilles4........................................ 129 158 196 288 317 352 368 308 321 361 39 Panama............................................................... 1,115 1,167 2,331 2,628 2,741 2,396 2,808 2,992 2,826 2,494 40 Peru..................................................................... 243 257 287 311 321 323 337 363 321 347 41 Uruguay.............................................................. 172 245 243 185 197 210 211 233 223 221 42 Venezuela............................................................ 3,309 3,118 2,929 3,210 2,562 3,696 3,550 3,809 3,337 3,706 43 Other Latin America and Caribbean............... 1,393 1,797 2,167 1,517 1,639 1,496 1,553 1,760 1,550 1,501 44 22,384 29,766 30,488 33,463 33,501 34,630 34,843 36,394 36,654 36,467 45 China (Mainland).............................................. 123 48 53 44 46 49 57 67 65 105 46 China (Taiwan).................................................. 1,025 990 1,013 1,262 1,280 1,319 1,247 499 546 502 47 Hong Kong........................................................ 605 894 1,094 1,211 1,250 1,368 1,189 1,256 1,400 1,436 48 India................................................................... 115 638 961 762 833 899 843 790 804 838 49 Indonesia............................................................ 369 340 410 309 348 575 439 449 575 357 50 Israel................................................................... 387 392 559 440 432 453 469 674 669 617 51 Japan.................................................................. 10,207 14,363 14,616 19,755 19,933 19,937 21,355 21,969 21,428 21,764 52 Korea................................................................. 390 438 602 736 776 790 750 795 111 827 53 Philippines.......................................................... 700 628 687 566 623 594 578 639 613 549 54 Thailand.............................................................. 252 277 264 296 290 352 279 427 379 307 55 Middle East oil-exporting countries5............... 7,355 9,360 8,979 6,719 6,350 6,911 6,381 7,420 8,121 7,866 56 Other Asia.......................................................... 856 1,398 1,250 1,364 1,341 1,384 1,256 1,411 1,283 1,297 57 Africa...................................................................... 3,369 2,298 2,535 2,578 2,645 2,540 2,636 2,886 2,694 2,805 58 Egypt................................................................... 342 333 404 463 417 322 312 404 337 279 59 Morocco............................................................. 68 87 66 67 74 84 30 32 29 32 60 South Africa....................................................... 166 141 174 160 238 266 294 168 179 207 61 Zaire................................................................... 62 36 39 52 45 39 43 43 48 42 62 Oil-exporting countries6.................................... 2,240 1,116 1,155 1,198 1,270 1,230 1,335 1,525 1,379 1,549 63 Other Africa....................................................... 491 585 698 638 601 600 622 715 721 697 64 Other countries....................................................... 2,119 2,012 1,297 1,180 1,090 1,189 1,187 1,076 860 1,131 65 Australia............................................................. 2,006 1,905 1,140 1,051 899 975 950 838 655 933 66 All other............................................................. 113 107 158 130 191 213 236 239 204 198 67 Nonmonetary international and regional organizations................................................... 5,699 5,714 3,274 2,823 3,406 2,929 2,225 2,617 2,312 2,095 68 International...................................................... 5,415 5,157 2,752 2,157 2,339 1,789 1,033 .1,485 1,210 919 69 Latin American regional................................. 188 267 278 437 799 856 870 808 804 865 70 Other regional7.................................................. 96 290 245 228 269 284 323 324 299 311 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. Note. 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

Bank-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 1979 Area and country 1975 1976 1977 Aug. Sept. Oct. Nov. Dec. Jan.33 Feb .p 1 58,308 79,301 90,206 92,269 94,620 96,820 105,337 114,606 105,859 103,765 2 Foreign countries.................................................... 58,275 79,261 90,163 92,231 94,581 96,779 105,291 114,550 105,819 103,725 3 Europe..................................................................... 11,109 14,776 18,114 17,172 18,390 19,327 20,504 24,181 20,740 20,491 4 Austria................................................................ 35 63 65 107 95 111 142 140 147 115 5 Belgium-Luxembourg........................................ 286 482 561 847 964 1,052 1,232 1,200 1,504 1,376 6 Denmark............................................................. 104 133 173 146 147 160 193 254 172 170 7 Finland................................................................ 180 199 172 216 221 232 260 305 281 264 8 France................................................................. 1,565 1,549 2,082 2,573 2,831 2,752 2,716 3,737 2,632 2,317 9 Germany............................................................. 380 509 644 645 742 808 838 900 840 111 10 Greece................................................................. 290 279 206 125 126 161 134 164 162 169 11 Italy..................................................................... 443 993 1,334 1,037 1,016 1,355 1,453 1,504 1,402 1,395 12 Netherlands........................................................ 305 315 338 403 379 494 602 680 683 621 13 Norway............................................................... 131 136 162 163 263 238 282 299 251 252 14 Portugal.............................................................. 30 88 175 105 99 106 180 171 169 173 15 Spain................................................................... 424 745 722 676 735 929 980 1,110 905 1,102 16 Sweden................................................................ 198 206 218 290 325 348 465 537 449 388 17 Switzerland......................................................... 199 379 564 1,013 871 781 1,045 1,283 1,051 970 18 Turkey................................................................ 164 249 360 305 305 293 283 283 179 132 19 United Kingdom................................................ 5,170 7,033 8,964 7,206 7,890 8,065 8,356 10,124 8,434 8,883 20 Yugoslavia.......................................................... 210 234 311 281 307 293 302 363 400 409 21 Other Western Europe *..................................... 76 85 86 125 128 147 107 122 135 110 22 U.S.S.R............................................................... 406 485 413 343 370 387 321 366 327 309 23 Other Eastern Europe2..................................... 513 613 566 564 575 617 612 638 619 619 24 Canada.................................................................... 2,834 3,319 3,355 3,349 3,451 3,586 4,552 5,142 4,954 5,047 25 Latin America and Caribbean................................ 23,863 38,879 45,850 49,216 49,482 49,267 54,341 56,507 52,834 50,181 26 Argentina............................................................ 1,377 1,192 1,478 1,566 1,690 1,447 1,698 2,266 2,134 2,359 27 Bahamas.............................................................. 7,583 15,464 19,858 21,825 19,110 19,208 23,541 21,118 20,890 18,658 28 Bermuda.............................................................. 104 150 232 194 141 352 141 189 185 155 29 Brazil................................................................... 3,385 4,901 4,629 4,838 5,252 5,596 6,137 6,251 6,259 6,112 30 British West Indies............................................ 1,464 5,082 6,481 7,019 8,397 7,170 6,432 9,173 5,327 5,054 31 Chile.................................................................... 494 597 675 809 742 832 862 968 1,012 939 32 Colombia............................................................ 751 675 671 687 727 793 936 1,012 1,054 1,019 33 Cuba.................................................................... 14 13 10 1 1 * 4 * * * 34 Ecuador.............................................................. 252 375 517 560 646 621 680 705 700 768 35 Guatemala3........................................................ 86 79 85 89 94 87 109 36 Jamaica3.............................................................. 44 46 45 49 40 37 48 37 Mexico................................................................ 3,745 4,822 4,909 5,016 5,010 4,927 5,255 5,417 5,449 5,394 38 Netherlands Antilles4......................................... 72 140 224 198 230 212 242 268 259 217 39 Panama............................................................... 1,138 1,372 1,410 1,631 2,280 2,480 2,531 3,074 3,656 3,493 40 Peru..................................................................... 805 933 962 930 967 945 931 918 873 846 41 Uruguay.............................................................. 57 42 80 56 51 63 58 52 50 44 42 Venezuela............................................................ 1,319 1,828 2,318 2,513 2,746 3,105 3,367 3,474 3,324 3,481 43 Other Latin America and Caribbean............... 1,302 1,293 1,394 1,245 1,367 1,386 1,388 1,487 1,538 1,485 44 Asia......................................................................... 17,706 19,204 19,236 19,256 20,037 21,358 22,691 25,511 24,233 25,102 45 China (Mainland).............................................. 22 3 10 31 8 10 6 4 15 13 46 China (Taiwan).................................................. 1,053 1,344 1,719 1,177 1,241 1,285 1,356 1,499 1,457 1,757 47 Hong Kong........................................................ 289 316 543 790 903 1,368 1,385 1,573 1,620 1,960 48 India.................................................................... 57 69 53 73 76 66 46 54 61 60 49 Indonesia............................................................ 246 218 232 125 152 144 188 143 141 123 50 Israel.................................................................... 721 755 584 504 544 555 719 872 996 896 51 Japan................................................................... 10,944 11,040 9,839 9,853 10,260 10,568 11,997 12,734 12,565 12,219 52 Korea.................................................................. 1,791 1,978 2,336 1,925 1,933 1,788 1,741 2,277 2,239 2,478 53 Philippines.......................................................... 534 719 594 728 730 732 111 680 607 692 54 Thailand.............................................................. 520 442 633 685 633 734 758 753 751 832 55 Middle East oil-exporting countries 5............... 744 1,459 1,746 2,099 2,200 2,097 2,188 3,118 2,332 2,487 56 Other Asia.......................................................... 785 863 947 1,265 1,357 2,012 1,592 1,804 1,451 1,585 57 Africa...................................................................... 1,933 2,311 2,518 2,264 2,158 2,219 2,163 2,221 2,145 2,092 58 Egypt................................................................... 123 126 119 62 67 56 68 107 82 83 59 Morocco.............................................................. 8 27 43 42 38 40 36 82 97 88 60 South Africa....................................................... 657 957 1,066 1,058 1,022 990 906 860 838 760 61 181 112 98 79 82 161 162 164 156 155 62 Oil-exporting countries6.................................... 382 524 510 458 406 438 439 452 438 456 63 Other................................................................... 581 565 682 565 544 534 551 556 533 551 64 830 772 1,090 974 1,063 1,023 1,041 988 914 812 65 700 597 905 829 894 879 894 877 792 704 66 130 175 186 145 168 145 147 111 122 108 67 Nonmonetary international and regional 33 40 43 38 39 41 45 56 40 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 Note. Data for period prior to April 1978 include claims of banks’ 1978. domestic customers on foreigners. For a description of the changes in 4 Includes Surinam through December 1975. the International 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 □ April 1979 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 1979 Type of claim 1975 1976 1977 Aug. Sept. Oct. Nov. Dec. Jan.* Feb.? 1 Total....................................................................... §8,308 79,301 90,206 103,736 125,616 2 Banks’ own claims on foreigners......................... 92,269 94,620 96,820 105,337 114,606 105,859 103,765 3 Foreign public borrowers................................. 7,591 8,006 8,051 9,197 10,047 10,287 10,494 4 Own foreign offices *................................... 37,537 35,001 36,357 40,412 40,882 38,373 35,551 5 Unaffiliated foreign banks................................. 27,500 31,448 31,080 33,461 40,379 34,515 34,643 6 Deposits.......................................................... 4,595 4,688 3,965 4,370 5,506 4,689 5,163 7 Other............................................................... 22,905 26,760 27,115 29,090 34,873 29,826 29,480 8 All other foreigners............................................ 19,641 20,165 21,332 22,267 23,298 22,685 23,077 9 Claims of banks’ domestic customers2............... 9,116 11,009 10 Deposits. ............................................................ 500 972 11 Negotiable and readily transferable in­ struments 3................................................... 3,724 4,762 12 Outstanding collections and other claims4.... 5,467 5,756 6,176 4,892 5,275 13 Memo* Customer liability on acceptances... 12,747 14,837 1 U.S. banks: includes amounts due from own foreign branches and 3 Principally negotiable time certificates of deposit and bankers ac­ foreign 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 banks1 own claims are given 2 Assets owned by customers of the reporting bank located in the on a monthly basis, but the data for claims of banks’ domestic customers United States that represent claims on foreigners held by reporting banks are available on a quarterly basis only. for the account of their domestic customers. For a description of the changes in the International Statistics tables, see July 1978 Bulletin, p. 612. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-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 1979 Maturity; by borrower and area 1978 1979 June Sept.? Dec.* Mar. June Sept. 1 Total......................................................................... 55,128 59,516 73,250 By borrower 43,682 46,684 57,982 3 Foreign public borrowers................................ 2,919 3,640 4,497 4 All other foreigners.......................................... 40,763 43,044 53,486 5 Maturity of over 1 year1..................................... 11,445 12,832 15,268 6 Foreign public borrowers................................ 3,162 3,928 5,315 7 All other foreigners.......................................... 8,283 8,904 9,952 By area Maturity of 1 year or less1 8 Europe............................................................... 9,532 10,386 14,934 9 Canada.............................................................. 1,615 1,943 2,662 10 Latin America and Caribbean........................ 17,036 18,518 20,813 11 Asia................................................................... 13,515 13,712 17,500 12 Africa................................................................ 1,461 1,535 1,512 13 Allother2.......................................................... 523 591 562 Maturity of over 1 year1 14 Europe............................................................... 2.979 3,104 3,163 15 Canada.............................................................. 330 793 1,426 16 Latin America and Caribbean......................... 5.979 6,843 8,444 17 Asia................................................................... 1,282 1,305 1,393 18 Africa................................................................ 629 577 629 19 All other2.......................................................... 247 211 214 1 Remaining time to maturity. Note. The first available data are for June 1978. For a description of 2 Includes nonmonetary international and regional organizations. the 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 Currencies Millions of dollars, end of period 1978 Item 1975 1976 1977 Mar. June Sept.* Dec.* 1 Banks’ own liabilities..................................................................... 560 781 925 986 1,704 1,981 2,055 2 Banks’ own claims1....................................................................... 1,459 1,834 2,356 2,383 3,153 3,530 3,612 3 Deposits...................................................................................... 656 1,103 941 948 1,290 1,386 1,797 4 Other claims............................................................................... 802 731 1,415 1,435 1,863 2,144 1,815 5 Claims of banks’ domestic customers2........................................ 809 446 400 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 For a description of the changes in the International Statistics tables, for the accounts of their domestic customers. see July 1978 Bulletin, p. 612. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics □ April 1979 3.20 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1979 1978 1979 Country or area 1977 1978 Jan.- Feb. p Aug. Sept. Oct. Nov. Dec. Jan p Feb.? Holdings (end of period) < 1 Estimated total1.. 38,640 44,933 41,578 42,217 43,627 43,852 44,933 46,166 46,975 2 Foreign countries1 33,894 39,812 37,124 37,830 38,476 38,474 39,812 41,297 42,271 3 Europe1............................. 13,936 17,072 14,154 14,689 15,260 15,654 17,072 18,360 19,853 4 Belgium-Luxembourg.. 19 19 19 19 19 19 19 19 19 5 Germany1..................... 3,168 8,705 5,761 6,157 6,645 7,102 8,705 8,864 10,212 6 Netherlands................. 911 1,358 1,278 1,306 1,356 1,351 1,358 1,433 1,517 7 Sweden......................... 100 285 210 211 231 266 285 320 355 8 Switzerland................... 497 977 636 694 731 915 977 1,818 1,508 9 United Kingdom.......... 8,888 5,373 5,862 5,909 5,915 5,674 5,373 5,489 5,823 10 Other Western Europe. 349 354 387 393 365 327 354 417 420 11 Eastern Europe............ 4 12 Canada. 288 152 276 276 151 151 152 150 146 13 Latin America and Caribbean................ 551 416 545 445 426 416 416 395 379 14 Venezuela.............................................. 199 144 244 144 144 144 144 144 144 15 Other Latin American and Caribbean. 183 110 139 139 119 109 110 88 72 16 Netherlands Antilles............................ 170 162 162 162 162 162 162 162 162 17 Asia....... 18,745 21,483 21,652 21,924 21,942 21,565 21,483 21,704 21,205 18 Japan. 6,860 11,528 10,791 11,096 11,560 11,483 11,528 12,226 12,422 19 Africa........ 362 691 491 491 691 691 691 691 691 20 All other. 11 -3 7 5 6 -3 -3 -3 -3 21 Nonmonetary international and regional organizations..................................... 4,746 5,121 4,454 4,387 5,151 5,378 5,121 4,869 4,704 22 International.................... 4,646 5,089 4,421 4,354 5,118 5,345 5,089 4,837 4,666 23 Latin American regional. 100 33 33 33 33 33 33 33 38 Transactions (net purchases, or sales (—), during period) 24 Total i................... 22,843 6,292 2,042 425 639 1,410 225 1,081 1,233 809 25 Foreign countries1 21,130 5,916 2,460 813 706 646 -3 1,338 1,485 974 26 Official institutions. '20,377 3,712 -407 710 704 577 69 -346 111 -517 27 Other foreign1........ '753 2,205 2,868 103 3 69 -72 1,683 1,375 1,493 28 Nonmonetary international and regional organizations..................................... 1,713 375 -417 -387 -67 764 227 -256 -252 -165 Memo: Oil-exporting countries 29 Middle East 2.......................... 4,451 -1,785 -1,154 -31 -31 -401 -241 -127 -461 -693 30 Africa 3.................................... -181 329 * 200 -1 * 1 Beginning December 1978, includes U.S. Treasury notes publicly 4 Estimated official and private holdings of marketable U.S. Treasury issued to private foreign residents. securities with an original maturity of more than 1 year. Data are based 2 Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, on a benchmark survey of holdings as of Jan. 31, 1971, and monthly and United Arab Emirates (Trucial States). transactions reports. Excludes nonmarketable U.S. Treasury bonds and 3 Comprises Algeria, Gabon, Libya, and Nigeria. 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 1979 Assets 1976 1977 1978 Sept. Oct. Nov. Dec. Jan. Feb. Mar.? 352 424 367 325 305 379 367 338 343 351 Assets held in custody : 66,532 91,962 117,126 102,699 107,934 112,434 117,126 116,961 114,005 105,362 3 Earmarked gold2.............................................. 16,414 15,988 15,463 15,553 15,548 15,525 15,463 15,448 15,432 13,107 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 inforeign 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 1979 Transactions, and area or country 1977 1978 Jan.- Feb.^ Aug. Sept. Oct. Nov. Dec. Jan.** Feb.p U.S. corporate securities Stocks 1 Foreign purchases.............................................. 14,155 20,130 2,745 2,446 2,357 1,509 1,461 1,438 1,361 1,384 2 Foreign sales...................................................... 11,479 17,723 2,565 2,680 2,115 1,523 1,359 1,102 1,301 1,264 3 Net purchases, or sales (—)............................... 2,676 2,408 180 -235 241 -14 103 336 60 120 4 Foreign countries................................................ 2,661 2,454 165 -235 244 -15 102 336 61 104 5 Europe............................................................ 1,006 1,271 45 -152 -33 -91 -10 264 -7 52 6 France.......................................................... 40 47 10 9 2 -4 1 -38 -6 16 7 Germany..................................................... 291 620 2 -54 24 -30 8 264 -18 20 8 Netherlands................................................ 22 -22 -50 -22 7 7 6 -9 -35 -15 9 Switzerland.................................................. 152 -585 -18 -184 -115 -118 -88 -23 -30 12 10 United Kingdom........................................ 613 1,218 104 110 54 58 67 74 85 19 11 Canada............................................................ 65 74 1 -18 117 22 6 38 7 -6 12 Latin America and Caribbean...................... 127 151 8 48 1 13 -2 16 34 -25 13 Middle East1.................................................. 1,390 781 30 -134 120 42 109 4 -16 46 14 Other Asia...................................................... 59 187 80 34 35 -4 1 15 49 30 15 Africa.............................................................. 5 -13 5 -12 5 2 -2 -1 -2 6 16 Other countries.............................................. 8 3 -4 -1 -1 2 1 1 -4 1 17 Nonmonetary international and regional 15 -46 15 * -3 1 1 * -1 16 Bonds2 18 Foreign purchases.............................................. 7,739 7,955 1,094 868 610 727 437 884 641 453 19 Foreign sales....................................................... 3,546 5,453 1,251 490 550 530 388 558 704 547 20 4,192 2,502 -157 379 60 197 49 326 -63 -94 21 4,096 2,093 83 326 62 137 39 134 54 28 22 Europe............................................................ 1,863 972 149 137 80 89 25 152 39 *110 23 France......................................................... -34 30 18 6 -2 -10 3 17 18 24 Germany..................................................... -20 119 55 38 -5 -12 6 10 42 13 25 Netherlands................................................ 72 19 -14 18 19 -4 -1 -6 -4 -10 26 Switzerland................................................. 94 -100 15 -20 43 9 9 39 8 6 27 United Kingdom........................................ 1,703 936 39 89 * 110 9 115 -54 93 * 28 Canada............................................................ 141 102 21 24 16 -5 6 11 10 29 Latin America and Caribbean...................... 64 78 32 17 11 13 -1 5 23 9 30 Middle East1.................................................. 1,695 810 -140 99 -73 -19 -8 -21 -34 -106 3 3 3 1 3 2 O A Ot t f h h ri e e c r r a c A .. o . s . u . i . a n .. . t . . . r . . . . i . . e . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * 3 - 3 6 8 1 - 3 1 1 1 * 20 1 * 48 1 * * 28 * * 60 * * 23 * - - 3 5 * * 16 * 4 1 34 Nonmonetary international and regional organizations............................................... 96 409 -240 53 -3 60 10 192 -118 -122 Foreign securities 35 Stocks, net purchases, or sales (—)................ -410 527 -17 52 -69 -19 163 -12 11 -28 36 Foreign purchases.............................................. 2,255 3,666 497 383 261 299 360 232 265 232 ,37 Foreign sales...................................................... 2,665 3,139 514 331 330 318 197 244 254 260 38 Bonds, net purchases, or sales (—)................. -5,096 -4,017 -872 -205 36 -677 -446 73 -550 -322 39 Foreign purchases.............................................. 8,040 11,044 1,725 990 762 941 856 1,020 783 942 40 Foreign sales...................................................... 13,136 15,061 2,597 1,195 726 1,618 1,302 948 1,333 1,264 41 Net purchases, or sales (—) of stocks and bonds.. -5,506 -3,490 -889 -153 -33 -696 -283 61 -540 -349 42 Foreign countries....................................... -3,949 -3,313 -653 -157 -67 -507 -303 19 -513 -141 43 Europe................................................................ -1,100 -40 -166 94 -86 13 -102 53 -124 -42 44 Canada................................................................ -2,404 -3,237 -490 -161 -41 -747 -246 -24 -305 -184 45 Latin America and Caribbean.......................... -82 201 130 -17 -12 -17 18 * 60 70 46 Asia..................................................................... -97 350 -122 46 72 236 21 -15 -141 19 47 Africa.................................................................. 2 -441 -8 -123 -1 1 1 * -3 -5 48 Other countries.................................................. -267 -146 3 3 1 6 4 5 1 2 49 Nonmonetary international and regional organizations...................................... -1,557 -177 -236 5 34 -189 20 41 -27 -209 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 government agencies and corporations. Also includes issues of new debt States). securities 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 □ April 1979 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 Sept. Dec. Mar. June Sept. Sept. Dec. Mar. June Sept. Liabilities to foreigners Claims on foreigners 1 Total....................................................................... 7,243 7,910 8,361 8,792 9,645 15,223 16,221 18,399 18,162 18,260 By type 2 6,386 7,109 7,477 7,967 8,794 14,120 14,803 16,636 16,598 16,291 3 Payable in foreign currencies............................. 857 801 884 825 851 1,104 1,418 1,763 1,564 1,969 4 Deposits with banks abroad in reporter’s name........................................................ 414 613 783 613 804 5 Other............................................................... 690 805 980 890 1,165 By area or country 6 Foreign countries.................................................... 7,089 7,695 8,214 8,661 9,521 15,222 16,220 18,397 18,160 18,258 7 2,317 2,491 2,820 2,993 3,159 5,062 5,764 5,508 5,273 5,887 8 Austria............................................................ 19 21 26 26 33 24 24 21 28 25 9 Belgium-Luxembourg.................................... 126 116 171 167 165 226 211 187 155 112 10 16 14 23 22 17 44 56 47 40 34 11 11 9 12 3 4 59 13 13 53 50 12 France............................................................. 170 238 273 302 260 430 513 545 533 622 13 226 284 335 356 391 395 450 420 436 534 14 Greece............................................................. 78 85 108 82 71 52 41 42 40 44 15 Italy................................................................. 107 128 104 156 188 351 387 381 451 400 16 Netherlands.................................................... 180 232 253 220 222 161 166 184 192 175 17 12 7 9 18 23 38 40 40 45 42 18 12 11 7 25 11 34 69 27 54 34 19 74 77 94 105 110 307 387 408 376 351 20 Sweden............................................................ 41 28 37 38 51 91 117 117 78 80 21 257 263 211 282 308 146 220 202 285 346 22 97 108 93 92 102 32 39 35 29 31 23 765 735 937 962 1,058 2,479 2,795 2,619 2,338 2,818 24 92 90 82 84 76 20 20 24 27 23 25 9 10 8 18 17 15 25 33 24 28 26 U.S.S.R........................................................... 11 24 15 19 27 62 55 44 37 33 27 14 12 23 17 25 96 135 121 51 45 28 Canada................................................................ 451 504 530 524 566 2,649 2,681 3,428 3,502 3,724 29 Latin America.................................................... 1,038 1,201 1,353 1,421 1,532 4,619 4,467 5,943 6,001 5,142 30 Argentina....................................................... 50 40 53 14 131 53 53 53 61 65 31 248 329 327 321 353 1,963 2,019 3,122 3,081 2,350 32 76 49 62 63 87 414 493 482 479 418 33 Chile............................................................... 13 17 14 23 14 40 45 40 37 40 34 24 42 26 42 42 85 84 80 79 69 35 Cuba............................................................... * * * * * * * * * 1 36 103 114 169 185 235 302 314 312 331 382 37 Panama........................................................... 12 22 12 71 59 222 91 175 97 76 38 Peru................................................................. 13 15 22 17 19 30 32 30 30 25 39 Uruguay.......................................................... 4 3 5 9 7 5 5 6 4 5 40 Venezuela........................................................ 210 216 264 185 232 251 269 306 309 284 41 Other Latin American republics................... 122 118 107 101 121 257 281 268 229 223 42 9 25 41 30 19 8 12 24 19 21 43 Other Latin America..................................... 154 209 250 299 213 989 768 1,045 1,245 1,183 44 2,583 2,835 2,814 3,008 3,517 2,398 2,777 2,970 2,810 2,905 45 China, Mainland........................................... 1 8 1 1 4 12 9 22 21 23 46 China, Taiwan................................................ 152 156 167 170 116 139 151 144 113 157 47 Hong Kong.................................................... 25 40 32 30 61 13 98 85 92 127 48 44 37 26 10 23 42 38 85 93 85 49 Indonesia........................................................ 60 56 57 59 49 184 375 185 152 167 50 Israel............................................................... 58 63 68 59 68 46 38 47 43 86 51 Japan.............................................................. 604 695 761 807 865 1,026 1,068 1,379 1,142 1,157 52 75 103 99 107 103 153 171 133 168 161 53 78 74 95 107 157 111 99 94 96 107 54 17 17 11 27 43 24 23 32 30 29 55 Other Asia...................................................... 1,469 1,588 1,498 1,631 1,968 587 702 764 800 804 56 Africa 588 571 594 603 661 340 386 402 430 441 57 Egypt.............................................................. 45 13 19 25 34 18 34 31 36 29 58 Morocco......................................................... 105 112 130 148 145 10 21 22 16 16 59 South Africa................................................... 29 20i 30 36 34 75 15 11 88 14 60 Zaire............................................................... 48 46 55 57 56 19 15 11 16 12 61 Other Africa................................................... 361 380i 360i 338 391 218 241 268 274 311 62 Other countries................................................... 111 93' 104 111 85 153 146 145 143 158 63 Australia......................................................... 93 75; 89 97 12 113 111 111 109 118 64 All other......................................................... 18: IS! 14 14 14 41 35 34 34 40 65 Nonmonetary international and regional | 154t 215i 147 132 125 1 1 1 2 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 July Aug. Sept. Oct. Nov. Dec.? 1 Total....................................................................... 3,357 3,799 5,720 7,136 8,949 10,098 8,635 10,503 11,223 9,515 By type 2,660 3,042 4,984 6,121 7,64^ 8,818 7,409 9,240 9,981 6,264 3 Deposits.......................................................... 2,591 2,710 4,505 5,703 7,172 8,282 6,985 8,688 9,362 7,744 4 Short-term investments 1............................... 69 332 479 418 471 536 424 552 619 520 5 Payable in foreign currencies............................. 697 757 735 1,015 1,305 1,280 1,225 1,263 1,241 1,252 6 Deposits.......................................................... 429 511 404 547 689 660 730 789 111 873 7 Short-term investments 1............................... 268 246 331 468 616 620 495 474 470 379 By country 8 United Kingdom................................................ 1,350 1,306 1,838 2,120 1,878 1,869 2,246 2,949 3,137 2,728 9 Canada................................................................ 967 1,156 1,698 1,777 2,537 3,013 2,452 2,858 2,833 2,144 10 Bahamas.............................................................. 391 546 1,355 1,896 3,217 3,543 2,247 2,819 3,033 2,519 11 Japan................................................................... 398 343 133 153 279 276 250 234 249 203 12 All other.............................................................. 252 446 716 1,190 1,038 1,397 1,440 1,643 1,971 1,921 1 Negotiable and other readily transferable foreign obligations payable Note. Data represent the assets abroad of large nonbanking conon demand or having a contractural maturity of not more than 1 year cerns in the United States. They are a portion of the total claims on from the date on which the obligation was incurred by the foreigner. foreigners reported by nonbanking concerns in the United States and are included in the figures shown in table 3.26. 3.25 LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Nonbanking Concerns in the United States Millions of dollars, end of period 1977 1978 1977 1978 Area and country Sept. Dec. Mar. June Sept. Sept. Dec. Mar. June Sept. Liabilities to foreigners Claims on foreigners 1 Total....................................................................... 3,331 3,175 3,149 3,077 3,122 4,719 5,077 5,143 5,067 5,007 2 Europe................................................................... 2,555 2,425 2,498 2,422 2,471 833 864 937 943 927 3 Germany............................................................ 407 255 295 282 290 79 74 75 71 76 4 Netherlands........................................................ 272 287 292 266 275 81 82 81 76 74 5 Switzerland........................................................ 224 241 241 236 246 42 49 48 55 58 6 United Kingdom................................................ 1,237 1,222 1,228 1,214 1,253 282 310 332 363 341 7 Canada................................................................... 67 62 58 56 65 1,462 1,776 1,792 1,811 1,779 8 Latin America........................................................ 289 284 248 248 234 1,367 1,402 1,387 1,298 1,283 9 Bahamas............................................................. 151 148 142 141 138 36 40 42 2 2 10 Brazil.................................................................. 7 7 6 7 7 134 144 154 143 144 11 Chile................................................................... 1 1 1 1 1 201 203 194 190 176 12 Mexico................................................................ 30 30 27 26 29 187 177 183 188 217 13 Asia......................................................................... 358 342 284 290 289 829 817 810 803 812 319 305 250 255 254 94 66 83 78 70 15 Africa..................................................................... 3 2 2 2 3 165 161 156 154 149 16 All other i............................................................... 59 60 60 60 61 63 59 60 59 56 1 Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics □ April 1979 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Mar. 31, 1979 Rate on Mar. 31, 1979 Rate on Mar. 31, 1979 Country Country Country Per­ Month Per­ Month Per­ Month cent effective cent effective cent effective Argentina.......................... 18.0 Feb. 1972 9.5 Aug. 1977 7.0 Feb. 1978 Austria................................ 3.75 Jan. 1979 Germany, Fed. Rep. of. 4.0 Mar. 1979 6.5 July 1978 Belgium.............................. 6.0 July 1978 10.5 Sept. 1978 1.0 Feb. 1978 Brazil.................................. 33.0 Nov. 1978 3.5 Mar. 1978 United Kingdom........... 13.0 Mar. 1979 Canada............................... 11.25 Jan. 1979 4.5 June 1942 5.0 Oct. 1970 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 Percent per annum, averages of daily figures 1978 1979 Country, or type 1976 1977 1978 Oct. Nov. Dec. Jan. Feb. Mar. 1 Eurodollars................................................................ 5.58 6.03 8.74 10.12 11.51 11.62 11.16 10.79 10.64 11.35 8.07 9.18 10.44 12.00 12.28 12.61 13.28 11.98 9.39 7.47 8.52 9.68 10.37 10.44 10.87 10.94 11.08 4 Germany..................................................................... 4.19 4.30 3.67 3.90 3.81 4.09 3.85 4.13 4.42 5 Switzerland................................................................. 1.45 2.56 0.74 0.24 0.20 0.22 0.05 0.13 0.03 6 Netherlands................................................................. 7.02 4.73 6.53 11.23 8.86 10.25 8.69 7.42 7.35 7 France......................................................................... 8.65 9.20 8.10 7.37 7.06 6.59 6.55 6.83 7.05 8 Italy.............................................................................. 16.32 14.26 11.40 10.99 11.17 11.24 11.12 11.38 11.46 10.25 6.95 7.14 8.55 9.19 9.28 8.93 8.23 7.63 10 Japan............................................................................ 7.70 6.22 4.75 4.44 4.78 4.76 4.52 4.50 4.54 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 1979 Country/currency 1976 1977 1978 Oct. Nov. Dec. Jan. Feb. Mar. 1 Australia/dollar.................... 122.15 110.82 114.41 116.87 114.53 114.15 114.04 113.12 112.15 2 Austria/schilling................... 5.5744 6.0494 6.8958 7.4526 7.1808 7.2621 7.3821 7.3510 7.3312 3 Belgium/franc....................... 2.5921 2.7911 3.1809 3.4503 3.3389 3.3637 3.4276 3.4153 3.3971 4 Canada/dollar....................... 101.41 94.112 87.729 84.546 85.244 84.763 84.041 83.638 85.187 5 Denmark/krone................... 16.546 16.658 18.156 19.584 19.025 19.063 19.487 19.423 19.269 6 Finland/markka................... 25.938 24.913 24.337 25.454 24.932 24.957 25.252 25.186 25.161 7 France/franc......................... 20.942 20.344 22.218 23.767 22.958 23.178 23.570 23.395 23.328 8 Germany/deutsche mark... 39.737 43.079 49.867 54.430 52.508 53.217 54.056 53.862 53.754 9 India/rupee........................... 11.148 11.406 12.207 12.643 12.458 12.174 12.185 12.124 12.138 10 Ireland/pound....................... 180.48 174.49 191.84 200.75 196.08 198.61 200.53 200.42 203.73 11 Italy/lira................................. .12044 .11328 .11782 .12317 .11857 .11863 .11955 .11899 .11888 12 Japan/yen.............................. .33741 .37342 .47981 .54478 .52066 .51038 .50571 .49877 .48470 13 Malaysia/ringgit................... 39.340 40.620 43.210 45.627 45.415 45.524 45.487 45.488 45.440 14 Mexico/peso......................... 6.9161 4.4239 4.3896 4.3904 4.3881 4.3950 4.4038 4.3952 4.3835 15 Netherlands/guilder............. 37.846 40.752 46.284 50.017 48.512 49.120 50.082 49.856 49.801 16 New Zealand/dollar............. 99.115 96.893 103.64 107.37 105.41 105.45 105.64 105.32 105.39 17 Norway/krone...................... 18.327 18.789 19.079 20.325 19.736 19.574 19.730 19.610 19.619 18 Portugal/escudo................... 3.3159 2.6234 2.2782 2.2342 2.1510 2.1472 2.1358 2.1065 2.0855 19 South Africa/rand............... 114.85 114.99 115.01 115.00 115.04 115.01 114.96 116.76 118.40 20 Spain/peseta.......................... 1.4958 1.3287 1.3073 1.4317 1.4015 1.4085 1.4293 1.4427 1.4490 21 Sri Lanka/rupee................... 11.908 11.964 6.3834 6.3757 6.4695 6.4700 6.4491 6.4439 6.4593 22 Sweden/krona....................... 22.957 22.383 22.139 23.349 22.856 22.808 22.987 22.898 22.901 23 Switzerland/franc................. 40.013 41.714 56.283 65.117 59.766 59.703 59.840 59.699 59.473 24 United Kingdom/pound... 180.48 174.49 191.84 200.75 196.08 198.61 200.53 200.42 203.78 Memo: 25 United States/dollar1.......... 105.57 103.31 86.04 88.86 88.52 87.77 88.25 88.39 1 Index of weighted average exchange value of U.S. dollar against cur- the Weighted-Average Exchange Value of the U.S. Dollar: Revision” on rencies of other G-10 countries plus Switzerland. March 1973 = 100. page 700 of the August 1978 Bulletin. 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 Note. Averages of certified noon buying rates in New York for cable transfers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 69 Guide to Tabular Presentation and Statistical Releases G uide to Tabular Presentation Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. Not available P Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column head­ IPCs Individuals, partnerships, and corporations ing when more than half of figures in that REITs Real estate investment trusts column are changed.) RPs Repurchase agreements Amounts insignificant in terms of the last SMSAs Standard metropolitan statistical areas decimal place shown in the table (for Cell not applicable example, less than 500,000 when the smallest unit given is millions) 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.................... December 1978 A-76 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 Federal Reserve Board of Governors G. William M iller, Chairman Philip E. Coldwell J. Henry C. Wallich Charles Partee Office of Board Members Office of Staff Director for Monetary and Financial Policy Joseph R. Coyne, Assistant to the Board Kenneth A. Guenther, Assistant to the Board Stephen H. Axilrod, Staff Director Jay Paul Brenneman, Special Assistant to the Edward C. Ettin, Deputy Staff Director Board Murray Altmann, Assistant to the Board Frank O’Brien, Jr., Special Assistant to the Peter M. Keir, Assistant to the Board Board Stanley J. Sigel, Assistant to the Board Joseph S. Sims, Special Assistant to the Board Normand R. V. Bernard, Special Assistant to Donald J. Winn, Special Assistant to the Board the Board Legal Division Division of Research and Statistics Neal L. Petersen, General Counsel Robert E. Mannion, Associate General James L. Kichline, Director Joseph S. Zeisel, Deputy Director Counsel Allen L. Raiken, Associate General Counsel John H. Kalchbrenner, Associate Director Charles R. McNeill, Assistant to the General John J. Mingo, Senior Research Division Officer Counsel Eleanor J. Stockwell, Senior Research J. Virgil Mattingly, Assistant General Division Officer Counsel James M. Brundy, Associate Research Division Gilbert T. Schwartz, Assistant General Officer Counsel Robert A. Eisenbeis, Associate Research Division Officer Jared J. Enzler, Associate Research Division Office of the Secretary Officer J. Cortland G. Peret, Associate Research Theodore E. Allison, Secretary Division Officer Griffith L. Garwood, Deputy Secretary Michael J. Prell, Associate Research Division *Edward T. Mulrenin, Assistant Secretary Officer Richard H. Puckett, Manager, Regulatory Helmut F. Wendel, Associate Research Improvement Project Division Officer Robert M. Fisher, Assistant Research Division Officer Division of Consumer Affairs Frederick M. Struble, Assistant Research Division Officer Janet O. Hart, Director Stephen P. Taylor, Assistant Research Nathaniel E. Butler, Associate Director Division Officer Jerauld C. Kluckman, Associate Director Levon H. Garabedian, Assistant Director Anne Geary, Assistant Director Division of Banking Division of International Finance Supervision and Regulation Edwin M. Truman, Director John E. Ryan, Director Robert F. Gemmill, Associate Director fFrederick C. Schadrack, Deputy Director George B. Henry, Associate Director Frederick R. Dahl, Associate Director Charles J. Siegman, Associate Director William W. Wiles, Associate Director Samuel Pizer, Senior International Division Jack M. Egertson, Assistant Director Officer Don E. Kline, Assistant Director Jeffrey R. Shafer, Associate International Robert S. Plotkin, Assistant Director Division Officer Thomas A. Sidman, Assistant Director Dale W. Henderson, Assistant International Samuel H. Talley, Assistant Director Division Officer William Taylor, Assistant Director Larry J. Promisel, Assistant International Division Officer *On loan from Office of the Controller. Ralph W. Smith, Jr., Assistant International Digitized for FRAtSOEnR l oan from the Federal Reserve Bank of New York. Division Officer http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 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 Joseph W. Daniels, Sr., Director of Equal Employment Opportunity Division of Federal Reserve Harry A. Guinter, Program Director for Bank Examinations and Budgets Contingency Planning Albert R. Hamilton, Director Clyde H. Farnsworth, Jr., Associate Division of Data Processing Director Charles W. Bennett, 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 Division of Support Services Donald E. Anderson,Director John L. Grizzard, Associate Director Walter W. Kreimann, Associate Director John D. Smith, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Bulletin □ April 1979 FOMC and Advisory Councils Federal Open Market Committee G. William Miller, Chairman Paul A. Volcker, Vice Chairman John Balles Monroe Kimbrel J. Charles Partee Robert Black Robert Mayo Nancy H. Teeters Philip E. Coldwell Henry C. Wallich Murray Altmann, Secretary George B. Henry, Associate Economist Normand R. V. Bernard, Assistant Secretary Peter M. Keir, Associate Economist Neal L. Petersen, General Counsel Michael Keran, Associate Economist James H. Oltman, Deputy General Counsel James L. Kichline, Associate Economist Robert E. Mannion, Assistant General Counsel James Parthemus, Associate Economist Stephen H. Axilrod, Economist Karl Scheld, Associate Economist Harry Brandt, Associate Economist Edwin M. Truman, Associate Economist Richard G. Davis, Associate Economist Joseph S. Zeisel, Associate Economist Edward C. Ettin, Associate Economist Alan R. Holmes, Manager, System Open Market Account Peter D. Sternlight, Deputy Manager for Domestic Operations Scott E. Pardee, Deputy Manager for Foreign Operations Federal Advisory Council Richard H. Vaughan, ninth district, Vice President J. W. McLean, tenth district, President Henry S. Woodbridge, first district Frank A. Plummer, sixth district Walter B. Wriston, second district Roger E. Anderson, seventh district William B. Eagleson, Jr., third district Clarence C. Barksdale, eighth district Merle E. Gilliand, fourth district James D. Berry, eleventh district J. Owen Cole, fifth district Chauncey E. Schmidt, twelfth district Herbert V. Prochnow, Secretary William J. Korsvik, Associate Secretary Consumer Advisory Council William D. Warren, Los Angeles, California, Chairman Marcia A. Hakala, Omaha, Nebraska, Vice Chairman Roland E. Brandel, San Francisco, California Percy W. Loy, Portland, Oregon James L. Brown, Milwaukee, Wisconsin R. C. Morgan, El Paso, Texas Mark E. Budnitz, Boston, Massachusetts Florence M. Rice, New York, New York John G. Bull, Fort Lauderdale, Florida Ralph J. Rohner, Washington, D. C. Robert V. Bullock, Frankfort, Kentucky Raymond J. Saulnier, New York, New York Carl Felsenfeld, New' York, New York Henry S. Schechter, Washington, D. C. Jean A. Fox, Pittsburgh, Pennsylvania E. G. SchuhartII, Amarillo, Texas Richard H. Holton, Berkeley, California Blair C. Shick, Cambridge, Massachusetts Edna DeCoursey Johnson, Baltimore, Mary­ Thomas R. Swan, Portland, Maine land Anne Gary Taylor, Alexandria, Virginia Richard F. Kerr, Cincinnati, Ohio Richard A. Van Winkle, Salt Lake City, Utah Robert J. Klein, New York, New York Richard D. Wagner, Simsbury, Connecticut Harvey M. Kuhnley, Minneapolis, Minnesota Mary W. Walker, Monroe, Georgia 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 Robert M. Solow Frank E. Morris Robert P. Henderson James A. McIntosh NEW YORK*................ 10045 Robert H. Knight Paul A. Volcker Boris Yavitz Thomas M. Timlen Buffalo......................... 14240 Frederick D. Berkeley 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 Arnold R. Weber 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 E. Elberson 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 William H. Martin, III Hiram J. Honea Jacksonville................32203 Copeland D. Newbern Charles B. East Miami...........................33152 Castle W. Jordan F. J. Craven, Jr. Nashville.....................37203 John C. Bolinger Jeffrey J. Wells New Orleans..............70161 Levere C. Montgomery 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 ..................40232 James F. Thompson Donald L. Henry Memphis ....................38101 Frank A. Jones, Jr. L. Terry Britt MINNEAPOLIS............55480 Stephen F. Keating Mark H. Willes William G. Phillips 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 Gerald D. Hines Robert H. Boykin El Paso.........................79999 A. J. Losee Fredric W. Reed Houston.......................77001 Gene M. Woodfin J. Z. Rowe San Antonio................78295 Pat Legan 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 Wendell J. Ashton 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. Remit­ eral Reserve System, Washington, D.C. 20551. Where tance from foreign residents should be drawn on a U.S. a charge is indicated, remittance should accompany bank. (Stamps and 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 each. year or $2.00 each in the United States, its posses­ 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 one address, $.20 each. Banking and Monetary Statistics, 1914-1941. Joint Treasury-Federal Reserve Study of the (Reprint of Part 1 only) 1976. 682 pp. $5.00. Government Securities Market: Staff Stud­ Banking and Monetary Statistics, 1941-1970. ies—Part 1. 1970. 86 pp. $.50 each; 10 or more 1976. 1,168 pp. $15.00. to one address, $.40 each. Part 2. 1971. 153 pp. Annual Statistical Digest, 1971-75. 1976. 339 pp. and Part 3. 1973. 131 pp. Each volume $1.00; $4.00 per copy for each paid subscription to Fed­ 10 or more to one address, $.85 each. eral Reserve Bulletin. All others, $5.00 each. Open Market Policies and Operating Proce­ Annual Statistical Digest, 1972-76. 1977. 388 pp. dures—Staff Studies. 1971. 218 pp. $2.00 $10.00 per copy. each; 10 or more to one address, $1.75 each. Annual Statistical Digest, 1973-77. 1978. 361 pp. Reappraisal of the Federal Reserve Discount $12.00 per copy. Mechanism. Vol. 1. 1971. 276 pp. Vol. 2. 1971. Federal Reserve Chart Book. Issued four times a 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; year in February, May, August, and November 10 or more to one address, $2.50 each. Subscription includes one issue of Historical Chart The Econometrics of Price Determination Con­ Book. $7.00 per year or $2.00 each in the United ference, October 30-31, 1970, Washington, D.C. States, its possessions, Canada, and Mexico. Else­ 1972. 397 pp. Cloth ed. $5.00 each; 10 or more where, $10.00 per year or $3.00 each. to one address, $4.50 each. Paper ed. $4.00 each; Historical Chart Book. Issued annually in Sept. 10 or more to one address, $3.60 each. Subscription to Chart Book includes one issue. Federal Reserve Staff Study: Ways to Moderate $1.25 each in the United States, its possessions, Fluctuations in Housing Construction . Canada, and Mexico; 10 or more to one address, 1972. 487 pp. $4.00 each; 10 or more to one $1.00 each. Elsewhere, $1.50 each. address, $3.60 each. Capital Market Developments. Weekly. $15.00 per Lending Functions of the Federal Reserve year or $.40 each in the United States, its posses­ Banks. 1973. 271 pp. $3.50 each; 10 or more sions, Canada, and Mexico; 10 or more of same to one address, $3.00 each. issue to one address, $13.50 per year or $.35 each. Improving the Monetary Aggregates (Report of the Elsewhere, $20.00 per year or $.50 each. Advisory Committee on Monetary Statistics). Selected Interest and Exchange Rates—Weekly 1976. 43 pp. $1.00 each; 10 or more to one Series of Charts. Weekly. $15.00 per year or address, $.85 each. $.40 each in the United States, its possessions, Annual Percentage Rate Tables (Truth in Lend­ Canada, and Mexico; 10 or more of same issue ing—Regulation Z) Vol. I (Regular Transactions). to one address, $13.50 per year or $.35 each. 1969. 100 pp. Vol. II (Irregular Transactions). Elsewhere, $20.00 per year or $.50 each. 1969. 116 pp. Each volume $1.00, 10 or more of same volume to one address, $.85 each. The Federal Reserve Act, as amended through De­ Federal Reserve Measures of Capacity and Ca­ cember 1976, with an appendix containing provi­ pacity Utilization. 1978. 40 pp. $1.75 each, sions of certain other statutes affecting the Federal 10 or more to one address, $1.50. each. Reserve System. 307 pp. $2.50. The Bank Holding Company Movement to 1978: Regulations of the Board of Governors of the A Compendium. 1978. 289 pp. $2.50 each, 10 Federal Reserve System or more to one address, $2.25 each. Published Interpretations of the Board of Gov­ Improving the Monetary Aggregates: Staff ernors, as of June 30, 1978. $7.50. Papers. 1978. 170 pp. $4.00 each, 10 or more Industrial Production—1976 Edition. 1977. 304 to one address, $3.75 each. pp. $4.50 each; 10 or more to one address, $4.00 1977 Consumer Credit Survey. 1978. 119 pp. $2.00 each. each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications A 75 Consumer Education Pamphlets Printed in Full in the Bulletin Staff Studies shown under “Reprints.” (Short pamphlets suitable for classroom use. Multiple copies available without charge.) Reprints Consumer Handbook To Credit Protection Laws The Equal Credit Opportunity Act and . . . Age (Except for Staff Papers, Staff Studies, and some The Equal Credit Opportunity Act and . . . leading articles, most of the articles reprinted do not Credit Rights in Housing exceed 12 pages.) The Equal Credit Opportunity Act and . . . Doctors, Lawyers, Small Retailers, and Measures of Security Credit. 12/70. Others Who May Provide Incidental Credit Revision of Bank Credit Series. 12/71. The Equal Credit Opportunity Act and . Assets and Liabilities of Foreign Branches of Women U.S. Banks. 2/72. Fair Credit Billing Bank Debits, Deposits, and Deposit Turnover— A Guide to Federal Reserve Regulations Revised Series. 7/72. How to File A Consumer Credit Complaint Yields on Newly Issued Corporate Bonds. 9/72. If You Borrow To Buy Stock Recent Activities of Foreign Branches of U.S. If You Use A Credit Card Banks. 10/72. Truth in Leasing Revision of Consumer Credit Statistics. 10/72. U.S. Currency One-Bank Holding Companies Before the 1970 What Truth in Lending Means to You Amendments. 12/72. Yields on Recently Offered Corporate Bonds. 5/73. Rates on Consumer Instalment Loans. 9/73. Staff Studies New Series for Large Manufacturing Corpora­ tions. 10/73. Studies and papers on economic and financial subjects U.S. Energy Supplies and Uses, Staff Economic that are of general interest. Study by Clayton Gehman. 12/73. The Structure of Margin Credit. 4/75. Summaries Only Printed in the Bulletin New Statistical Series on Loan Commitments at Selected Large Commercial Banks. 4/75. (Limited supply of mimeographed copies of full text Recent Trends in Federal Budget Policy. 7/75. available upon request for single copies.) An Assessment of Bank Holding Companies, Staff Economic Study by Robert J. Lawrence and Sam­ An Analysis of Federal Reserve Attrition Since uel H. Talley. 1/76. 1960, by John T. Rose. Jan. 1978. 44 pp. Industrial Electric Power Use. 1/76. Problems in Applying Discriminant Analysis in Revision of Money Stock Measures. 2/76. Credit Scoring Models, by Robert A. Eisenbeis. Survey of Finance Companies, 1975. 3/76. Jan. 1978. 28 pp. Revised Series for Member Bank Deposits and External Capital Financing Requirements of Aggregate Reserves. 4/76. Commercial Banks: 1977-81, by Gerald A. Han- Industrial Production—1976 Revision. 6/76. weck and John J. Mingo. Feb. 1978. 34 pp. Federal Reserve Operations in Payment Mecha­ Mortgage Borrowing Against Equity in Existing nisms: A Summary. 6/76. Homes: Measurement, Generation, and Im­ New Estimates of Capacity Utilization: Manu­ plications for Economic Activity, by David F. facturing and Materials. 11/76. Seiders. May 1978. 42 pp. Bank Holding Company Financial Developments The Behavior of Member Bank Required Reserve in 1976. 4/77. Ratios and the Effects of Board Action, Survey of Terms of Bank Lending—New Series. 1968-77, by Thomas D. Simpson. July 1978. 39 5/77. pp. The Commercial Paper Market. 6/77. Foothold Acquisitions and Bank Market Struc­ Consumption and Fixed Investment in the Eco­ ture, by Stephen A. Rhoades and Paul Schweit­ nomic Recovery Abroad. 10/77. zer, July 1978. 8 pp. Recent Developments in U.S. International Interest Rate Ceilings and Disintermediation, by Transactions. 4/78. Edward F. McKelvey. Sept. 1978. 105 pp. The Federal Budget in the 1970’s. 9/78. The Relationship Between Reserve Ratios and Summary Measures of the Dollar’s Foreign Ex­ the Monetary Aggregates Under Reserves change Value. 10/78. and Federal Funds Rate Operating Targets, Survey of Time and Savings Deposits at All Com­ by Kenneth J. Kopecky. Dec. 1978. 58 pp. mercial Banks, July 1978. 11/78. Tie-ins Between the Granting of Credit and Redefining the Monetary Aggregates. 1/79. Sales of Insurance by Bank Holding Compa­ The Economy in 1978. 1/79. nies and Other Lenders, by Robert A. Eisenbeis Check Processing at Federal and Paul R. Schweitzer. Feb. 1978. 75 pp. Reserve Offices. 2/79. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Index to Statistical Tables References are to pages A-3 through A-68 although the prefix “A ” is omitted in this index ACCEPTANCES, bankers, 11, 25, 27 Demand deposits: Agricultural loans, commercial banks, 18, 20-22, 26 Adjusted, commercial banks, 13, 15, 19 Assets and liabilities (See also Foreigners): Banks, by classes, 16, 17, 19, 20-23 Banks, by classes, 16, 17, 18, 20-23, 29 Ownership by individuals, partnerships, and Domestic finance companies, 39 corporations, 25 Federal Reserve Banks, 12 Subject to reserve requirements, 15 Nonfinancial corporations, current, 38 Turnover, 13 Automobiles: Deposits (See also specific types of deposits): Consumer instalment credit, 42, 43 Banks, by classes, 3, 16, 17, 19, 20-23, 29 Production, 48, 49 Federal Reserve Banks, 4, 12 Subject to reserve requirements, 15 Turnover, 13 BANKERS balances, 16, 18, 20, 21, 22 Discount rates at Reserve Banks (See Interest rates) (See also Foreigners) Discounts and advances by Reserve Banks (See Loans) Banks for cooperatives, 35 Dividends, corporate, 37 Bonds (See also U.S. Government securities): New issues, 36 EMPLOYMENT, 46, 47 Yields, 3 Euro-dollars, 27 Branch banks: Assets and liabilities of foreign branches of U.S. FARM mortgage loans, 41 banks, 56 Farmers Home Administration, 41 Liabilities of U.S. banks to their foreign Federal agency obligations, 4, 11, 12, 13, 34 branches, 23 Federal and Federally sponsored credit agencies, 35 Business activity, 46 Federal finance: Business expenditures on new plant and Debt subject to statutory limitation and equipment, 38 types and ownership of gross debt, 32 Business loans (See Commercial and industrial Receipts and outlays, 30, 31 loans) Treasury operating balance, 30 Federal Financing Bank, 30, 35 CAPACITY utilization, 46 Federal funds, 3, 6, 18, 20, 21, 22, 27, 30 Capital accounts: Federal home loan banks, 35 Banks, by classes, 16, 17, 19, 20 Federal Home Loan Mortgage Corp., 35, 40, 41 Federal Reserve Banks, 12 Federal Housing Administration, 35, 40, 41 Central banks, 68 Federal intermediate credit banks, 35 Certificates of deposit, 23, 27 Federal land banks, 35, 41 Commercial and industrial loans: Federal National Mortgage Assn., 35, 40, 41 Commercial banks, 15, 18, 23, 26 Federal Reserve Banks: Weekly reporting banks, 20, 21, 22, 23, 24 Condition statement, 12 Commercial banks: Discount rates (See Interest rates) Assets and liabilities, 3, 15-19, 20-23 U.S. Government securities held, 4, 12, 13, 32, 33 Business loans, 26 Federal Reserve credit, 4, 5, 12, 13 Commercial and industrial loans, 24, 26 Federal Reserve notes, 12 Consumer loans held, by type, 42, 43 Federally sponsored credit agencies, 35 Loans sold outright, 23 Finance companies: Number, by classes, 16, 17, 19 Assets and liabilities, 39 Real estate mortgages held, by type of holder and Business credit, 39 property, 41 Loans, 20, 21, 22, 42, 43 Commercial paper, 3, 24, 25, 27, 39 Paper, 25, 27 Condition statements (See Assets and liabilities) Financial institutions, loans to, 18, 20-22 Construction, 46, 50 Float, 4 Consumer instalment credit, 42, 43 Flow of funds, 44, 45 Consumer prices, 46, 51 Foreign: Consumption expenditures, 52, 53 Currency operations, 12 Corporations: Deposits in U.S. banks, 4, 12, 19, 20, 21, 22 Profits, taxes, and dividends, 37 Exchange rates, 68 Security issues, 36, 65 Trade, 55 Cost of living (See Consumer prices) Foreigners: Credit unions, 29, 42, 43 Claims on, 60, 61, 66, 67 Currency and coin, 5, 16, 18 Liabilities to, 23, 56-59, 64-67 Currency in circulation, 4, 14 Customer credit, stock market, 28 GOLD: Certificates, 12 Stock, 4, 55 DEBITS to deposit accounts, 13 Government National Mortgage Assn., 35, 40, 41 Debt (See specific types of debt or securities) Gross national product, 52, 53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Bulletin □ April 1979 A77 HOUSING, new and existing units, 50 REAL estate loans: Banks, by classes, 18, 20-23, 29, 41 INCOME, personal and national, 46, 52, 53 Life insurance companies, 29 Industrial production, 46, 48 Mortgage terms, yields, and activity, 3, 40 Instalment loans, 42, 43 Type of holder and property mortgaged, 41 Insurance companies, 29, 32, 33, 41 Reserve position, basic, member banks, 6 Insured commercial banks, 17, 18, 19 Reserve requirements, member banks, 9 Interbank deposits, 16, 17, 20, 21, 22 Reserves: Interest rates: Commercial banks, 16, 18, 20, 21, 22 Bonds, 3 Federal Reserve Banks, 12 Business loans of banks, 26 Member banks, 3, 4, 5, 15, 16, 18 Federal Reserve Banks, 3, 8 U.S. reserve assets, 55 Foreign countries, 68 Residential mortgage loans, 40 Money and capital markets, 3, 27 Retail credit and retail sales, 42, 43, 46 Mortgages, 3, 40 Prime rate, commercial banks, 26 SAVING: Time and savings deposits, maximum rates, 10 Flow of funds, 44, 45 International capital transactions of the United National income accounts, 53 States, 56-67 Savings and loan assns., 3, 10, 29, 33, 41, 44 International organizations, 56-61, 64-67 Savings deposits (See Time deposits) Inventories, 52 Savings institutions, selected assets, 29 Investment companies, issues and assets, 37 Securities (See also U.S. Government securities): Investments (See also specific types of investments): Federal and Federally sponsored agencies, 35 Banks, by classes, 16, 17, 18, 20, 21, 22, 29 Foreign transactions, 65 Commercial banks, 3, 15, 16, 17, 18 New issues, 36 Federal Reserve Banks, 12, 13 Prices, 28 Life insurance companies, 29 Special Drawing Rights, 4, 12, 54, 55 Savings and loan assns., 29 State and local govts.: Deposits, 19, 20, 21, 22 LABOR force, 47 Holdings of U.S. Government securities, 32, 33 Life insurance companies (See Insurance companies) New security issues, 36 Loans (See also specific types of loans): Ownership of securities of, 18, 20, 21, 22, 29 Banks, by classes, 16, 17, 18, 20-23, 29 Yields of securities, 3 Commercial banks, 3, 15-18, 20-23, 24, 26 State member banks, 17 Federal Reserve Banks, 3, 4, 5, 8, 12, 13 Stock market, 28 Insurance companies, 29, 41 Stocks (See also Securities): Insured or guaranteed by United States, 40, 41 New issues, 36 Savings and loan associations, 29 Prices, 28 TAX receipts, Federal, 31 MANUFACTURING: Time deposits, 3, 10, 13, 15, 16, 17, 19, 20, 21, Capacity utilization, 46 22, 23 Production, 46, 49 Margin requirements, 28 Trade, foreign, 55 Treasury currency, Treasury cash, 4 Member banks: Treasury deposits, 4, 12, 30 Assets and liabilities, by classes, 16, 17, 18 Treasury operating balance, 30 Borrowings at Federal Reserve Banks, 5, 12 Number, by classes, 16, 17, 19 Reserve position, basic, 6 UNEMPLOYMENT, 47 Reserve requirements, 9 U.S. balance of payments, 54 Reserves and related items, 3, 4, 5, 15 U.S. Government balances: Mining production, 49 Commercial bank holdings, 19, 20, 21, 22 Mobile home shipments, 50 Member bank holdings, 15 Monetary aggregates, 3, 15 Treasury deposits at Reserve Banks, 4, 12, 30 Money and capital market rates (See Interest rates) U.S. Government securities: Money stock measures and components, 3, 14 Bank holdings, 16, 17, 18, 20, 21, 22, 29, Money stock measures and components, 3, 14 32, 33 Mortgages (See Real estate loans) Dealer transactions, positions, and financing, 34 Mutual funds (See Investment companies) Federal Reserve Bank holdings, 4, 12, 13, 32, 33 Mutual savings banks, 3, 10, 20—22, 29, 32, 33, 41 Foreign and international holdings and 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 OPEN market transactions, 11 Yields, 3 Utilities, production, 49 PERSONAL income, 53 Prices: VETERANS Administration, 40, 41 Consumer and wholesale, 46, 51 Stock market, 28 WEEKLY reporting banks, 20-24 Prime rate, commercial banks, 26 Wholesale prices, 46 Production, 46, 48 Profits, corporate, 37 YIELDS (See Interest rates; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Minneapolis Detroit Chicago Omaha* \Sa/t Lake City Denver Kansas City t. Louis Louisvil Xorlotttj I Oklahoma City* 'n8eles Dallas© JacksM Houston i January 1978 LEGEND — Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities -----Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis