Federal Reserve Bulletin, 1979-07

JULY 1979 FEDERAL RESERVE BULLETIN An Update on the Automated Clearinghouse Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN (USPS 351-150). Controlled Circulation Postage Paid at Washington, D.C. POSTMASTER: Send address changes to Publications Services, Division of Support Services, Board of Governors of the Flederal Reserve System, Washington, D.C. 20551. 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.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

VOLUME 65 □ VOLUME 7 □ JULY 1979 FEDERAL RESERVE Board of Governors of the Federal Reserve System Washington, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman □ Stephen H. Axilrod □ John M. Denkler Janet O. Hart □ James L. Kichline □ Neal L. Petersen □ Edwin M. Truman Michael J. Prell, Staff Director The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed by Mendelle T. Berenson. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 525 An Update on the A utomated Act of 1979; Governor Coldwell urges that Clearinghouse the aspects of regulation and finance to be covered by the “sunset” provisions of the The automated clearinghouse system, bill be very specifically delineated and which has achieved remarkable growth in suggests that the Congress evaluate the the 10 years since the first ACH associa­ relative benefits and burdens to the public tion was formed, should expand further as and to industry that would result from new corporations become increasingly aware of statutory requirements, before the Com­ its capabilities. mittee on Governmental Affairs, U.S. Senate, June 15, 1979, 532 Staff Studies 541 Governor Partee offers the strong support “Measurement of Capacity Utilization: of the Board for the principles underlying Problems and Tasks’" presents the results the Depository Institutions Deregulation of a conference that addressed key ques­ Act of 1979, including the payment of tions relating to improvement in the interest on transactions balances at all de­ Board’s measures of capacity utilization. positary institutions, the gradual removal According to “The Market for Federal of interest rate ceilings on deposits in Funds and Repurchase Agreements,” the tandem with an expansion of the asset interbank market for federal funds and powers of thrift institutions, and the re­ repurchase agreements, which has ex­ quirement that NOW accounts at all fi­ panded rapidly in the 1970s, promotes the nancial institutions be subject to Federal overall efficiency of the banking system. Reserve reserve requirements, before the Subcommittee on Financial Institutions of 535 Industrial Production the Committee on Banking, Housing and Urban Affairs, U.S. Senate, June 27, Output fell 0.3 percent in June. 1979. 536 Statements to Congress 545 Announcements Governor J. Charles Partee discusses the results of a recent Board staff study con­ Appointment of Emmett J. Rice as a cerning possible tie-ins between the grant­ member of the Board of Governors. ing of credit and the sale of insurance by Revision of Regulation K to combine the bank holding companies and other lenders, Board’s rules regarding the international as well as related issues concerning per­ activities of U.S. banks, bank holding missible insurance activities for banking companies, and Edge corporations. organizations, before the Committee on Banking, Housing and Urban Affairs, . Survey of foreign lending by large U.S. U.S. Senate, June 14, 1979. banks indicates that cross-border and non­ local currency claims increased moder­ 538 Governor Philip E. Coldwell describes the ately in 1978. Board’s rulemaking procedures and its program of regulatory review in light of Circulation of new Susan B. Anthony the provisions of the Regulatory Reform dollar coin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Board staff. A l Financial and Business Statistics Changes in some tables in the International A3 Domestic Financial Statistics Statistics section of the Bulletin. A46 Domestic. Nonfinancial Statistics A54 International Statistics Admission of three state banks to mem­ bership in the Federal Reserve System. A69 Guide to Tabular Presentation and Statistical Releases 552 Law Department Amendment to Regulation E; rescission of A70 Board of Governors and Staff Regulations K and M and part of Regula­ tion Y; revision of Regulation K; various A ll Federal Open M arket Committee rules and bank holding company and bank and Staff; Advisory Councils merger orders; and pending cases. A73 Federal Reserve Banks, Branches, and Offices 580 Membership of the Board of Governors of the A74 Federal Reserve Board Publications Federal Reserve System, 1913-79 List of appointive and ex officio members. A76 Index to Statistical Tables Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

An Update on the Automated Clearinghouse This article was prepared by Earl G. Hamilton by ACH association rules relates to the deposit of the Division of Federal Reserve Bank schedule for direct deposit. These rules assure Operations. availability of funds to the depositor on a spe­ cific date. In the check system the depositor may More than 10 years have elapsed since a group have his funds delayed by the financial institu­ of commercial bankers in California organized tion for days after deposit of the check, as9the the special committee on paperless entries financial institution protects itself against the (SCOPE) to study the exchange of payments on check being returned. magnetic tape. The outgrowth of this study was The ACH clearing mechanism is illustrated the first automated clearinghouse (ACH) associ­ schematically in chart 1. In an ACH operation, ation comprising more than 100 California originating financial institutions create computer commercial banks; it marked the beginning of tapes of debit and credit items based upon a mutually beneficial arrangement between the instructions received from their corporate, gov­ private sector of the economy and the Federal ernment, and consumer customers and deliver Reserve to provide electronic payments services the tapes to their local Federal Reserve clearing to the public, A successful nationwide electronic and settlement facility. The information on the clearing and settlement mechanism in which tapes is read and edited by computer. It is then 12,000 financial institutions and 6,800 corpora­ sorted on the basis of receiving financial institu­ tions participate has evolved from this arrange­ tion, and debit and credit entries for settlement ment, and the ACH associations have been the are made in member bank reserve accounts for locus of developments in ACH operations and both the originating and the receiving financial, they are expected to continue in this important institution. If the receiving financial institution role. is in another Federal Reserve District, the in­ Participating in the ACH mechanism are the formation on tape is transmitted to the receiving privately incorporated ACH associations and the ACH where it is then sorted according to the National Automated Clearing House Associa­ receiving financial institution and where settle­ tion (NACHA); the originating and receiving ment is arranged. When the processing has been financial depositary institutions; the corpora­ completed, the computer creates magnetic tapes tions, governments, and consumers that use the or descriptive paper listings that the Federal system; and the Federal Reserve. Reserve sends to the receiving financial institu­ The ACH associations9 members are deposi­ tions. These institutions, in turn, make the ap­ tary institutions that have agreed to abide by propriate entries based on the instructions of the rules and procedures that have been estab­ their customers. lished for the exchange of payments on com­ The Federal Reserve operates all of the clear­ puter tape to make the ACH attractive to users. ing and settlement facilities for ACH associa­ For example, the rules established by the ACH tions, except for the New York Automated associations for error resolution on balance are Clearing House Association. While the New thought to provide greater consumer protection York association uses Federal Reserve delivery than those provided by the uniform commercial and settlement facilities, it provides its own code (UCC) for check payments. The rales computer operations. governing ACH payments also permit reversals, In the last 10 years the ACH concept has for which the check system has no provision. spread steadily. Today "36 ACH facilities pro­ A find element of consumer benefit established vide service to all of the continental United Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

526 Federal Reserve Bulletin □ July 1979 States except the southern half of West Virginia. the number of originating institutions is still (West Virginia has been opposed to any form relatively small, it has grown by a dramatic 23.6 of electronic fund transfers and until recently percent in the year ending April 1979* to more had a law requiring payment to be made in cash than 6,800. or check form. It is expected that the Mid- Atlantic Automated Clearing House Associa­ AC H Volume tion, which currently serves the northern half of West Virginia, will soon extend service cov­ The Federal Reserve has gathered statistics on erage to the southern half.) The members of the ACH operations since November 1976. Statis­ ACB associations include 9f722 commercial tics for both commercial and government users banks and 2,169 thrift institutions, most of -are collected by each Federal Reserve District which are receiving institutions only. Although and compiled for the Federal Reserve System. ACH processing mechanism CREDIT ENTRY Direct deposit of payroll Authorization Employtr’s financial institution Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Automated Clearinghouse 527 L Number of commercial and government ACH items processed at Federal Reserve Banks, April 1979 Federal Number Percent of District total Reserve Percent of District Commercial Government Total System total Commercial Government Boston ................................. 174,046 617,813 79 1,859 6.2 28.2 71.8 New York ......................... 230,381 1,044,340 1,274,721 10.0 18.1 81.9 Philadelphia ....................... 14,162 441.425 455,587 3.6 3.1 96.9 Cleveland ........................... 298,470 594,778 893,248 7.0 33.4 66.6 Richmond ........................... 243,266 771,599 1,014,865 7.9 24.0 76.0 Atlanta ................................. 184,011 1,257,691 1,441,702 1 1.3 12.8 87..2 Chicago ............................... 157,726 1,281,957 1,439,683 11.3 1 1.0 89.0 St. Louis ............................. 66,610 526,820 593,430 4.6 1 1.2 88.8 Minneapolis ....................... 87,914 406,914 494,828 3.9 17.8 82..2 Kansas City ....................... 233,178 804,079 1,037,257 8.1 22.5 77..5 Dallas ................................... 31,919 816,086 848,005 6.6 3.8 96.2 San Francisco ................... 341,207 2,169,090 2,510,297 19.5 13.5 86 System ................................. 2,062,890 10,732,592 12,795,482 100.0 16.1 83.9 Data for the first four months of 1979 suggest terregional exchange, many corporations would that the Federal Reserve will process more than find the ACH unacceptable because they would 150 million ACH items during the year as-a be required to use different systems for local whole, of which 130 million are government and national payments. items and the remainder, commercial, In April 1979, almost 13 million ACH items Commercial Items were processed at Federal Reserve Banks. On a systemwide basis, government items ac­ Commercial items processed through ACHs in­ counted for 83.9 percent of total ACH volume clude debits, credits, and prenotifications of and commercial items for 16.1 percent. As table debits and credits. Commercial debits include 1 shows, Federal Reserve offices in the San consumer payments (such as insurance pre­ Francisco District, where the ACH system orig­ miums, mortgages, and utilities) and corporate inated, processed the largest number of both payments (such as accounts receivable and cash commercial items and government items, repre­ concentration). A commercial debit occurs senting 19.5 percent of the System’s total. when the originator uses the ACH to collect The Federal Reserve’s ACH volume is still payment. Commercial credits include corporate dominated by government payments, which ac­ payments to consumers (such as corporate count for almost 97 percent of total volume in payroll payments, dividend payments, and an­ some Districts. In the Boston, Cleveland, and nuities) and corporate payments to corporations Richmond Districts, commercial volume is now (such as accounts payable and payments to 24 to 33 percent, and the trend is toward more credit-card merchants). A commercial credit is balance between government and commercial created when the originator uses the ACH to volume. For the first four months of 1979, the make payment. Ptenotifications are notices of volume of commercial payments has increased pending payments, either debits or credits. at an annua! rate of 44 percent over 1978, while About as many debit as credit payments were the volume of government payments has in­ distributed throughout the Reserve System as a creased 28 percent. The growth in commercial whole, and together they account for nearly 19 volume was spurred, first, by improved market­ of every 20 commercial items processed (table ing efforts by financial institutions and AGHs; 2). Prenotifications account for a much smaller and second, by the availability of a nationwide volume, 5.9 percent, of the total. Among the program for interregional, exchange among ACH Districts, however, the proportions of debits and associations, which has stimulated corporate credits vary widely. For example, in the New demand for both local and interregional pay­ York District where a large number of insurance ments. Without the nationwide program of in­ premiums are originated, debits account for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

528 Federal Reserve Bulletin □ July 1979 2. Number of commercial ACH items processed at Federal Reserve Banks, April 1979, by type Federal Number Percent of District total Reserve District Debits Credits Pre notifications Debits Credits Prenotifications Boston ............................. 21,756 146,542 5,748 12.5 84.2 3.3 New York ..................... 189,771 16,685 23,925 82.4 7.2 10.4 Philadelphia .................... 2,204 11,442 516 15.6 80.8 3.6 Cleveland ....................... 145,582 147,449 5,439 48.8 49.4 1.8 Richmond ....................... 141,417 89,922 11,927 58.1 37.0 4.9 Atlanta ............................. 1 19,171 49,015 15,825 64.8 26.6 8.6 Chicago ........................... 51,937 97,427 8,362 32.9 61.8 5.3 St. Louis ......................... 40,119 24,445 2,046 60.2 36.7 3.1 Minneapolis .................... 20,405 65,407 2,102 23.2 74.4 2.4 Kansas City ................... 158,103 64,489 10,586 67.8 27.7 4.5 Dallas ............................... 4,835 25,897 1,187 15.1 81.1 3.8 San Francisco ................ 102,652 203,122 35,433 30.1 59.5 10.4 System ............................. 997,952 941,842 123,096 48.4 45.7 5.9 82.4 percent of commercial items. In the Boston interregional payments. The Richmond Federal District, by contrast, credits account for 84.2 Reserve District receives the most interregional percent. 'The differences in credit .and debit ACH payments. volume in each District probably reflect initial During April 1979, the Federal Reserve pro­ marketing direction more than industry struc­ cessed interregional ACH payments valued at ture. Distribution percentages in each District $303.8 million (table 4). 'The average value of similar to those now reflected in System totals an interregional transfer was $546, with values are expected as the ACH concept develops. ranging from $71.61 for the New York District Of the 2.0 million commercial payments pro­ to $1,306.70 for Chicago. The New York Dis­ cessed by the Federal Reserve during April trict originated 41 percent of the number of 1979, 73 percent were local payments. The interregional transfer items, but these accounted remainder were interregional payments, which for only 5.4 percent of the dollars processed are processed twice, once by the originating interregionaily, District and once by the receiving District. The Overall, 60 percent of the ACH dollars pro­ number of incoming and outgoing payments for cessed interregionaily are either originated or each District is shown in table 3. The Federal received in two Districts, Cleveland and Rich­ Reserve District of New York originates 41 mond, The high average value for items origi­ percent, but receives only 1.5 percent of the nated or received in' Cleveland, Richmond, 3. Number of local and interregional commercial ACH items processed at Federal Reserve Banks, April 1979, by direction Number Percent of District total Federal Interregional Interregional Reserve Local Local District Incoming | Outgoing Incoming Outgoing Boston ............................. 144,278 38,154 29,768 68.0 18.0 14.0 New York ..................... 8,623 230,321 3.6 96.4 Philadelphia ................... 13,403 12,556 759 50.2 47.0 2.8 Cleveland ....................... 191,776 77,979 106,694 50.9 20.8 28.3 Richmond ....................... 162,190 124,426 81,076 44.1 33.8 22.1 Atlanta ............................. 169,584 55,256 14,427 70.9 23.1 6.0 Chicago ........................... 124,348 70,376 33,378 54.5 30.9 14.6 St. Louis ......................... 51,800 26,989 14,810 55.4 28.8 15.8 Minneapolis ................... 83,330 24,946 4,584 73.8 22.1 4.1 Kansas City ................... 225,808 17,460 7,370 90.1 7.0 2.9 Dallas ............................... 28,257 32,869 3,662 43.6 50.7 5.7 San Francisco ................ 311,559 66,863 29,648 76.3 16.4 7.3 System ............................. 1,506,333 556.497 556,497 57.6 21.2 21.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Automated Clearinghouse 529 4, Dollar value of interregional commercial ACH items processed at Federal Reserve Banks, April 1979, by direction Federal Thousands of dollars Percent of System total Average dollar value Reserve District Incoming Outgoing Incoming Outgoing Incoming Outgoing Boston ............................. 4,833 8,381 1.6 2.8 126.67 281.54 New York ..................... 3,623 16,494 1.2 5.4 420.16 71.61 Philadelphia ................... 5,283 598 1.7 .2 420.75 787.88 Cleveland ....................... 83,186 1 18,453 27.4 39.0 1,066.77 1,1 10.21 Richmond ....................... 106,138 98,858 35.0 32.5 853.02 1,219.33 Atlanta ............................. 13,903 1,360 4.6 .4 251.61 94.27 Chicago ........................... 15,947 43,615 5.2 14.4 226.60 1,306.70 St. Louis ......................... 5,533 4,011 1.8 1.3 205.00 270.83 Minneapolis ................... 38,195 917 12.6 .3 1,531.11 200.04 Kansas City ................... 5,526 3,005 1.8 1.0 316.49 407.73 Dallas ............................... 5,263 1,812 1.7 .6 160.12 494.81 San Francisco ................ 16,386 6,312 5.4 2.1 245.07 212.90 System ............................. 303,816 303,816 100.0 100.0 546.00 546.00 Chicago, and Minneapolis can be explained by Regular Social Security Administration pay­ the types of payments involved. Cash concen­ ments (SSAs); current month accruals (CMAs), tration payments and direct deposits of payroll which are social security payments that require account for a significant percentage of the total a later time schedule; and supplemental security interregional volume in those Districts with high income payments (SSIs) are originated once average transaction values, while small pay­ each month by regional Treasury disbursing ments (such as insurance premiums) predomi­ centers, which provide local Federal Reserve nate in those districts with low average value offices with magnetic payment tapes on a pre­ per payment. For example, the New York Dis­ determined schedule. SSAs account for 95 per­ trict initiates a large number of small payments cent of the total ACH social security payments. such as insurance premiums, whereas the Chi­ As would be expected, the geographic distri­ cago District initiates a large number of high bution of social security payments processed by value payments (such as corporate payroll and Federal Reserve Districts varies by population. cash concentration transactions), The four Federal Reserve Districts with the largest population—San Francisco, Chicago, New York, and Atlanta—process 56.4 percent Government Items of the total of all types of social security ACH During April 1979, the Federal Reserve pro­ payments. Some of these patterns are reported cessed 10.7 million government ACH payments in table 5. valued at $4.6 billion. Because some Federal In addition to social security ACH payments, Reserve offices processed these April payments the Federal Reserve Banks in April 1979 proc­ at the end of March, these numbers differ from essed more than 2.7 million other government the Treasury reports of 12.4 million items of ACH payments, including salaries, retirement government direct deposit payments for that pensions, and revenue-sharing payments. month. Social security payments accounted for Treasury disbursing offices provide magnetic about 75 percent of the government ACH vol­ payment tapes to Federal Reserve offices for all ume. The government's aggressive program to such payments except those for the military convert its check disbursement system to direct services, which operate their own disbursing deposit through electronic fund transfer systems offices and deal directly with the Federal Re­ has been very successful; the rate of partici­ serve. pation by payees in those programs that have Direct deposit programs of the Office of Per­ converted to the ACH system is 25 percent. sonnel Management (OPM, formerly the Civil These conversions save the government 12 cents Service Commission), the Air Force, and the per payment. Veterans Administration (VA) account for 81 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

530 Federal Reserve Bulletin □ July 1979 5, Number of government ACH items processed at Federal Reserve Banks, April 1979. by type Number Percent of District total Federal Reserve Social Other Social Other District security government security government payments payments payments payments Boston ........................................... 512,920 104,893 83.0 17.0 New York ................................... 928,767 1 15,573 88.9 11.1 Philadelphia ................................. 357,453 83,972 81.0 19.0 Cleveland ..................................... 402,604 192,174 67.7 32.3 Richmond ..................................... 474,771 296,828 61.5 38.5 Atlanta ........................................... 865,409 392,282 68.8 31.2 Chicago ......................................... 1,117,741 164,216 87.2 12.8 404,429 122,391 76.7 23.3 Minneapolis ................................. 300,015 106,899 73.7 26.3 Kansas City ................................. 554,995 249,084 69.0 3 1.0 Dallas ............................................. 488,239 327,847 59.8 40.2 1,608,971 560,119 74.2 25.8 System ........................................... 8,016,314 2,716,278 79.9 20.1 percent of other government—that is, non-social Outlook for security—ACH volume. The salary and retire­ Continued Grow th ment pension programs of the Air Force have a participation rate of 74 percent; they are fol­ The outlook for ACH activity is for continued lowed by OPM retirement, railroad retirement, growth. To date, government direct deposit and VA benefit and compensation programs, programs have been the success story behind with participation rates of 33, 21.6, and 13 the ACH movement. The Treasury, which esti­ percent respectively, according to the Treas­ mates that it- realizes cost savings of 12 cents ury’s monthly reports on volume and partici­ for each item converted from paper check to pation rates, electronic form, expects a participation rate of As in the case of social security payments, about 22,9 percent in 1979 and has established four Federal Reserve Districts processed more a goal of 40 percent by mid-1981, Hie achieve­ than half of all ACH items for other government ment of such a goal would add 10 million agencies. District population seems to be a monthly payments to ACH volume and would smaller factor in the volume distribution of other save the Treasury almost $29 million annually. government ACH payments, .although the San Commercial use of ACHs has lagged behind Francisco and Atlanta Districts, which rank first government use, in spite of a potential volume and fourth in terms of population, rank first and that is many times greater than that of the second in terms of volume processed, 20,6 and government and potential savings that appear ■ 14.4 percent respectively. New York and Chi­ to be just as great as those realized by the cago, which rank second and third in terms of government. The Federal Reserve conducted an District population, rank only ninth and seventh informal survey that focused on cost economies respectively in terms of other government ACH achieved through ACH services by eight non­ items processed. This disparity arises because banking firms and government agencies. The other government ACH activity is composed results showed reductions in operating costs of mostly of retirement pensions. The military and between 52 and 94 percent when .alternative government employees who receive these pen­ payment instruments are converted to ACH sions probably retire in the areas where they payments. The major savings were in the costs worked; most military bases are located in the of labor and capital and of postage. San Francisco, Atlanta, and Dallas Districts, Demand for ACH clearing will be influenced and most federal government offices are in the not only by productivity limits in the check Richmond District, thus explaining the high system but also' by continued improvement of percentage of payments processed in these four the ACH system. One considerable improve­ Districts. ment has been the implementation of a nation­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Automated Clearinghouse 531 wide exchange for interregional transfers. Be­ Pricing of Federal Reserve payment services cause that exchange has been fully operational could have a significant impact on ACH volume. only since September 1978, its full impact on Currently the Federal Reserve does not price ACH volume has not yet been felt. Federal either its check or its ACH services, but the Reserve surveys indicate that large nationwide Congress is considering legislation that requires corporations will actively participate in ACHs publication of price schedules for these services. when they become more aware of these ex­ A pricing environment would encourage use of panded capabilities. the most efficient payments mechanism, and the Plans are being made to improve the sched­ ACH system should benefit from competition ules for funds availability and for deposit dead­ because it is less labor intensive than the paper lines. These improvements will make such check system. Along with operational improve­ schedules competitive with those for check col­ ments, pricing should further strengthen the lection and therefore will make the ACH mech­ competitive position of the ACH system relative anism more attractive to potential users. to the check system and should encourage the Another ACH operational improvement that private sector to promote ACH services aggres­ will be required as volume increases, and that sively. in turn should stimulate volume even further, will be a shift of ACH delivery from check Summary couriers to electronic means. Hie number of data transmission links between Federal Reserve Over the last 10 years the ACH activity has offices and member bank offices has increased achieved remarkable growth. The 36 ACH fa­ and is expected to grow further in 1979. Data cilities now in operation process an annual vol­ transmission links will allow faster and more ume of 150 million payments. The government reliable delivery of payment information and direct deposit programs, accounting for 83,9 faster and more reliable transfers of funds be­ percent of total ACH volume, have been espe­ tween payors and payees. cially successful because of an aggressive edu­ Because the ACH concept is new and flexi­ cational and promotional program. Although ble, it is capable of adjusting to a changing now growing at a faster rate than in earlier environment through new applications. For ex­ years, commercial volume has lagged far behind ample, NACHA has adopted rules and formats government volume despite comparable cost that have encouraged financial institutions to use savings and significantly greater potential. Local ACHs to clear some customer-initiated pay­ payments constitute 73 percent of commercial ments that are capable of being processed in volume. This large proportion may reflect only batches. These include: (1) transactions from the fact that the Federal Reserve's nationwide automated teller machines when two or more exchange system for transfer of interregional financial institutions share the machine; (2) payments has been fully operational for less than items created by telephone bill payment serv­ a year. As businesses become aware of the ices; and (3) off-line transactions emanating increased capabilities of the ACH, interregional from point-of-sale systems. Such transactions volume should expand. Moreover, pricing for are deposited at the ACH by financial institu­ Federal Reserve services, in conjunction with tions on magnetic tape along with other ACH operational improvements in the ACH system, transactions. Check truncation is another poten­ is expected to provide a significant stimulus to tial application that could make use of ACH private demand for automated clearing in the technology. future. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

532 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 In some instances the Federal Reserve System by the members of their staffs. finances similar studies by members of the aca­ Single copies of the full text of each of the demic profession. studies or papers summarized in the Bulletin From time to time the results of studies that are available without charge. The list of Federal are of general interest to the professions and Reserve Board publications at the back of each to others are summarized—or they may be Bulletin includes a separate section entitled printed in full—in this section of-the Federal 6 6Staff Studies99 that lists the studies that are Reserve Bulletin. currently available. Study S ummaries M easurement of Capacity Utilization: Problems and Tasks Frank de Leeuw—Bureau of Economic Analysis, Department of Commerce Lawrence R. Forest, Jr.—Staff, Board of Governors Richard D. Haddock-—Staff, Board of Governors Zoltan E. Kenessey—Staff, Board of Governors Presented at the Round Table Conference on Capacity Utilization, Washington, D.C., December 4, 1978 As part of a program to improve- and expand presented and discussed at the conference, as the coverage of its measures of industrial ca­ well as a summary of the recommendations pacity utilization, the Federal Reserve, with the made, Bureau of Economic Analysis of the Department First, Frank de Leeuw noted that the capacity ■ of Commerce, held a conference at which key utilization rates derived from surveys show less questions relating to the measurement of capac­ amplitude of swing over a business cycle than ity utilization were addressed. The conference do rates based on the Federal Reserve’s index had the following broad objectives; (1) a review of industrial production. He found that two of the overall progress made and an exchange factors explain much of the cyclical slug­ of information on the latest developments in gishness of the survey-based rates: the capacity utilization statistics; (2) the intensifi­ overreporting of "no change” by respondents cation of the cooperation among the govern­ to the surveys; and the reporting of capacity mental , academic, and business organizations utilization rates based on labor inputs rather than involved in such statistics; and (3) the collection on output, which, because of swings in labor of commentaries on the current work, and sug­ productivity, varies more over the cycle than gestions about the direction of further efforts, does labor input. Tests showed that the adjust­ This study contains the four papers that were ments to correct survey-based rates for these two Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

533 sources of bias would account for a substantial manufacturing and for industry components. fraction of the difference in cyclical variability Noteworthy differences were found in terms of between measures of capacity utilization that are means, variances, and cyclical variability. Rad­ based on surveys and those based on the pro­ dock developed a technique for standardizing duction index. the various measures of utilization and found Lawrence R. Forest, Jr., related concepts of that, after standardization, those for total manu­ capacity to the statistical measures of capacity facturing all showed that in late 1978 reserve utilization based directly on surveys and to those capacity was less than 5 percent of feasible derived by the Federal Reserve. Most respond­ peacetime capacity; but those for materials in­ ents to surveys base their replies on a notion dicated that a little more slack existed. Raddock of “practical maximum” capacity that tempers concluded that after adjustments for level and the idea of an engineering maximum with eco­ for sensitivity to change in output, figures from nomic considerations. Forest analyzed two puz­ the surveys could be used to monitor Federal zling features of survey-based measures of ca­ Reserve rates and thereby to gain the benefits pacity utilization—cyclical sluggishness and the of the Federal Reserve approach, such as time­ apparent persistence of excess capacity. He liness, without the risk of large revisions. found that measurement error was a major rea­ Zoltan E. Kenessey outlined plans for ex­ son for the cyclical sluggishness and that a tending and integrating the Board’s capacity variety of factors caused the utilization rate for utilization statistics for manufacturing and ma­ total manufacturing to peak at levels far below terials into one system of rates that would cover 100 percent of capacity. These factors include, the entire industrial sector—manufacturing, among other things, shortages of labor and mining, and utilities. Kenessey also outlined materials, the failure of synchronization in several desirable directions of research: (1) the peaks in demand among industries > fluctuations development of a well-documented set of utili­ in input supplies and demand, and economies zation measures based on different concepts and of scale. approaches to measurement; (2) the analysis of Forest further explained how the derived capacity and utilization data in an input-output Federal Reserve estimates of capacity utilization framework to point up the fact that capacity is combined data on output, capacity, capital not a unique value but a range of values that stock, and utilization rates to provide estimates are affected by the composition of demand, of utilization rates that corrected for the cyclical availability of imports, and the technological bias found in the surveys. Finally, Forest dis­ structure of production; (3) the development of cussed the rather weak correlation of utilization measures for analyzing regional trends in ca­ rates with inflation rates and the decline from pacity; and (4) the development of new meas­ earlier periods in the rate of growth of the ures that, by expressing utilization in terms of productivity of capital during the 1970s. aggregate levels that could be reached in times The paper by Richard D. Raddock compared of peace, would solve the “optical” problem the statistical characteristics of various pub­ inherent in reported utilization rates with peaks lished capacity utilization measures for total well below 100 percent of capacity. □ The M arket for Federal Funds and Repurchase A greements Thomas D. Simpson—Staff, Board of Governors Prepared as a staff paper in early 1979 The market for federal funds and repurchase market, which is dominated by uncollateralized agreements has expanded rapidly during the federal funds transactions, was estimated to be 1970s. In late 1978 borrowings in the interbank about $45 billion. In addition, borrowings from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

534 Federal Reserve Bulletin □ July 1979 nonbank sources, principally repurchase agree­ investments, including RPs. This interpretation, ments against U.S. Treasury and federal agency however, does not consider RPs to be tanta­ securities, were estimated at nearly $60 billion. mount to transaction balances. Today, participation in the market for federal Whereas commercial bank RPs have probably funds and repurchase agreements (FF-RPs) is attracted some funds that otherwise would have broadly based. Many commercial banks of all been held as demand balances, it is not likely sizes lend FF-RP funds to other commercial that all such funds would be held as demand banks. Recipients of funds in the interbank balances if commercial bank RPs were not market are generally large banks that view such available. Close substitutes for commercial bank borrowings as managed liabilities, much like RPs, such as nonbank-dealer RPs, Eurodollars, certificates of deposit. Similarly, large banks are and commercial paper, are currently available the major borrowers of FF-RP funds from non­ and more would probably appear if commercial bank sources. bank RPs were unavailable. This paper discusses the extent of bank and The FF-RP market tends to lower the cost nonbank participation in the FF-RP market and of funds to commercial banks and thus perhaps includes an analysis of several major economic bank lending rates. As a likely result, more implications of the FF-RP market. financial intermediation is conducted through As a low-cost means of adjusting commercial commercial banks and bank credit is enlarged. bank balance sheets to unpredictable shifts of The market for U.S. Treasury and agency deposits, the interbank market promotes the obligations probably is strengthened somewhat overall efficiency of the banking system. By by the RP market. However, as unsecured linking the vast majority of commercial banks, federal funds transactions have tended to sup­ the interbank market also facilitates the imple­ plant Treasury obligations as liquid buffers, mentation of monetary policy because of its commercial banks have reduced their demands quick transmittal of changes in reserve avail­ for those obligations. ability throughout the banking system. The FF-RP market also has implications for In contrast with the interbank market, the the stability of the banking system. In its ca­ development of the RP market may have some pacity as a flexible and efficient buffer against disturbing consequences for monetary policy. unpredictable deposit flows among banks, it While in recent years demand deposits have serves as a stabilizer. Given the very short apparently fluctuated with developments in the maturities of most FF-RP contracts, however, RP market, this relationship is subject to varying banks that borrow heavily in this market to interpretations. One is that RPs allow commer­ acquire longer-term and illiquid assets are vul­ cial banks to pay explicit interest and avoid nerable to occasional liquidity pressures and to reserve requirements on funds that effectively interest rate risk. Moreover, isolated problems serve as transaction balances. Another empha­ of even a few banks could be translated into sizes the growing use of cash management a general concern by the public regarding the techniques, stimulated by very high interest well-being of all commercial banks. These rates, that have permitted depositors to conduct dangers tend to be moderated by the widespread a given volume of transactions with smaller use of the floating-rate contract by large bor­ amounts of demand deposits; demand balances rowing banks and by a general monitoring of are thus freed for the acquisition of highly liquid borrowing banks by lenders of FF-RPs. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

535 Industrial Production Released for publication July 16 Output of durable materials was almost un­ changed in June, as small increases in basic Industrial production in June declined an es­ metals and equipment parts were about offset timated 0.3 percent to 151.4 percent of the by declines in the output of consumer durable 1967 average—a level that is fractionally parts. Production of nondurable materials also below the first-quarter average and only slightly was about unchanged in June after a rise of 0.8 above the level of December 1978. The June percent in May. Energy materials production decline in industrial production was. dominated was unchanged again in June. Increases in coal by a drop of 3 percent in durable consumer production since February have been matched goods, but small decreases were registered in by declines in other energy components such output of nondurable consumer goods, interme­ as domestic crude oil output. diate products, and some materials as well. The total index for June was 4.5 percent higher than Seasonally adjusted, ratio scale, 1967=100 that of a year earlier; however, the 1979 sec­ ond-quarter average was 0.3 percent lower than that of the first quarter. The level of the April and May indexes was revised downward by 0.2 and 0.3 index points respectively. Output of consumer goods declined 1.0 per­ cent in June, primarily reflecting cutbacks in the output of autos, utility vehicles, and home goods. Auto assemblies were at an annual rate of 9.1 million units in June after an annual production rate of 9.4 million in May. Although output of nondurable consumer goods declined slightly in June, the level of output was still more than 4 percent higher than that of a year earlier. Production of business equipment in­ creased 0.2 percent, reflecting, in part, a further increase in output of transit equipment and sus­ tained high levels of production of other equip­ 1973 1975 1977 1979 1973 1975 1977 1979 Federal Reserve indexes, seasonally adjusted. Latest figures: ment. June. Auto sales and stocks include imports. 1967 == 100 Percentage change from preceding month to— Percentage change Industrial production 1979 1979 6/78 to May p June e Jan. Feb. Mar. Apr. May June 6/79 Total ............................................. 151.8 151.4 .0 .2 .7 -1.5 1.2 -.3 4.5 Products, total........................... 150.7 150.1 .2 .5 .6 -1.7 1.5 -.4 4.2 Final products....................... 147.6 146.9 .2 .4 1.0 -2.0 1.8 -.5 4.1 Consumer goods.............. 151.5 150.0 .0 .3 .7 -2.6 2.2 -1.0 2.0 Durable ....................... 161.0 156.1 -.6 .2 1.2 -7.3 6.4 -3.0 -2.8 Nondurable .................. 147.8 147.5 .2 .2 .7 -.6 .6 -.2 4.2 Business equipment___ 173.2 173.6 .6 .5 .9 -1.2 1.8 .2 7.3 Intermediate products........ 162.2 162.1 .5 .7 -.7 -.9 .6 -.1 4.8 Construction supplies... 159.3 158.6 .2 .1 -.9 -1.2 .8 -.4 4.3 Materials ..................................... 153.6 153.5 -.5 -.1 .9 -1.2 .8 -.1 4.8 pPreliminary. eEstimated. Note. Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

536 Statements to Congress Statement by J. Charles Partee, Member, Board here to defend the credit insurance industry or of Governors of the Federal Reserve System, lenders who offer insurance. Certainly there are before the Committee on Banking, Housing and aspects of their activities that concern me very Urban Affairs, U.S. Senate, June 14, 1979. much. For example, I am distressed about the relatively high charges for credit insurance that My purpose in appearing before you today is seem to persist in the face of low payout rates to describe the recent Board staff study of pos­ when compared with other insurance. sible tie-ins between the granting of credit and It is also not our role to protect the inde­ the sale of insurance by bank holding companies pendent insurance agents who have waged a and other lenders. I would like also to discuss long campaign in both the courts and state some related issues that have been raised con­ legislatures to limit entry by new competitors cerning permissible insurance activities for into their business. I believe that full competi­ banking organizations. The appendix attached tion, so long as it is fair and equitable, is the to my statement describes the study method­ best way to assure that consumers will receive ology in more detail and attempts to address good service at the lowest price. some of the critical comments that have been My purpose today is simply to report objec­ made about it.1 tively my reading of the results of the Board The Board staff study of tie-ins has received staff study. By way of background, the Board considerable attention. It has been used—and in its 1975 Annual Report expressed concern abused—by those seeking either to expand or that some consumer borrowers were being re­ to limit bank and bank holding company insur­ quired to purchase credit life and disability ance activities. The debate has at times become insurance as a condition of obtaining loans. quite heated, and both sides have tended to Senator Proxmire subsequently voiced this same overstate what they interpret the study results concern and requested the Board to undertake to show. Those seeking to expand bank and this study of the sale of insurance by banks and bank holding company activities argue that the bank holding companies in accordance with the study indicates there are no problems. Those antitying provisions of section 106 of the Bank seeking to limit these activities assert that the Holding Company Act. results are contradictory and meaningless. Some The study attempts to accomplish two tasks. commentators have even charged that the study First, it provides an analytical framework to was biased in order to favor banking organi­ evaluate whether or not tying is taking place. zations. Second, it reports the results of two special In view of the current debate and the role surveys that were conducted. One was a survey that the Board staff study seems to be playing, of individual consumer borrowers. It focused on I’d like to note for the record that we are not borrower experience and attitudes toward credit life and disability insurance in connection with 1. The appendix to this statement and the full staff recent loans that were still outstanding. The study are available on request from Publications Serv­ other survey was addressed to a small group ices, Division of Support Services, Washington, D.C. of bank holding companies in order to gather 20551. A summary of the study by Robert A. Eisenbeis and Paul R. Schweitzer, Tie-Ins between the Granting information on their policies, procedures, and of Credit and Sale of Insurance by Bank Holding organizational patterns in selling insurance. Of Companies and Other Lenders, Staff Studies 101, ap­ particular interest was information on their ac­ peared in the Bulletin, vol. 65 (February 1979), pp. 110- 11. tivities in the property and casualty insurance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

537 area. The sample selection and all survey ques­ penetration rates are lower than I would expect tions were coordinated with and approved by to see if tying were a widespread practice, and the staff of the Senate Banking Committee. are consistent with respondents’ reported poli­ The survey of consumers focused on those cies and procedures, which our staff does not borrowers having outstanding closed-end credit judge to be conducive to tying. Higher penetra­ balances with banks, finance companies, re­ tion rates were reported for credit life and dis­ tailers, or credit unions in which the original ability insurance than for property and casualty balance had been $200 or more. Of these, 62 insurance, but even these varied widely by percent of the borrowers had credit insurance. lender group, type of loan, and location of Retailers and banks had the lowest penetration company. Again, the reported patterns of con­ rates, with about 40 percent and 6IV2 percent duct did not seem consistent with extensive respectively; finance companies had the highest tying. Most institutions reported that the insur­ at 75 percent. The supporting evidence from the ance solicitation was made after the loan was survey, however, suggested it was unlikely that approved but before the monthly payment was these insurance coverage rates reflected either determined. explicit coercion (which seemed to be virtually In sum, the results of the study led the nonexistent) or involuntary tying. For example, Board’s staff to conclude that explicit contrac­ relatively few consumers felt that insurance was tual tying was virtually nonexistent and that strongly recommended or required. Among implicit tying did not appear to be a widespread those who did, it was not possible to determine problem. My reading of the study convinces me from the data whether insurance costs had in that these conclusions are appropriate. I think all cases been included in the annual percentage it is important also to emphasize that these are rate on the loan, as required by law. general conclusions. They do not imply that no Only a small portion of the consumers in the abuses have taken place, but simply that prob­ survey viewed credit insurance as a “bad serv­ lems are not widespread. ice.” Most regarded it as desirable, and more Because of the relationship between the tying importantly, felt it was priced “about right” or concerns and a number of pending legislative even “inexpensive” for what they got, and proposals, you also asked for the Board’s views indicated that they would recommend it to of several additional issues. These include the others. Finally, in response to an open-ended appropriateness of the sale of credit life and question about whether they had ever been health, or property and casualty insurance by treated unfairly in connection with a credit banks and bank holding companies, the public transaction, about one-fourth of the respondents benefits arising from these activities, and the cited instances that they considered unfair; none effects of permitting bank officers acting as of the instances that were cited involved reports insurance agents to direct premium income to of coercion or tying in the sale of insurance. themselves that might otherwise have gone to This survey result is consistent with the staff’s the bank. search of the Board’s complaint files, since no The Board’s view continues to be that bank­ valid complaint of illegal tying could be found ing organizations should be allowed to sell to have been filed by a consumer or business credit-related insurance, including property and under section 106 or otherwise back to at least casualty insurance. We believe that the benefits 1970. of such activity outweigh any adverse effects. With respect to the survey of bank holding In the first place, the activity of banks and bank companies, few if any firm generalizations can holding companies in providing this service is be made about the reported penetration rates procompetitive. This is an industry in which because of the character of the responses to the additional competition would seem desirable survey. The median reported penetration rates and potentially quite productive. Second, bank on credit-related property and casualty insurance sales of insurance provide a useful and conven­ clustered well below the 40 percent rate, ient service to the public, including sales at whether categorized by the type of loan or by locations poorly served by others. Finally, on the type of credit-originating subsidiary. These the basis of equity, it does not seem to us that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

538 Federal Reserve Bulletin □ July 1979 banking organizations should be singled out as Finally, an area where the link between in­ prohibited sellers among financial institutions surance activities and lending is of concern to and nonregulated lenders. Prohibiting the activ­ the banking agencies involves situations in ity for banking organizations would inconven­ which banking officials, during their working ience at least some of the public—namely, those hours, use the facilities of the bank to sell borrowers who would prefer to purchase their insurance as agents acting on their own account. credit-related insurance from the lender and who The effect is to divert insurance premium in­ would be forced by the prohibition to look come that would have accrued to the banking elsewhere for the service. organization had the officer been acting as an The public benefits from banking organization agent for the bank or holding company. On the involvement in the credit property and casualty other hand, such premium income can be insurance field rest entirely on the premise that viewed as an alternative form of compensation better service and enhanced public convenience for the bank officer, supplementing what other­ represent a valuable attribute. This is especially wise would be an unduly low rate of pay. At so since the insurance industry is immune from present the banking agencies have differing pol­ antitrust statutes. Furthermore, little retail price icies toward this practice. These differences competition exists because rate ceilings are set need to be resolved, and we will be working by state regulatory organizations and it is the to do so as a matter of interagency coordination underwriters who set the insurance rates actually in the period ahead. charged. In the case of credit life and disability Assisted by Mr. Robert A. Eisenbeis, the insurance, I would note that holding company Board’s Research Division Officer who was applicants often agree to hold premiums below principally charged with overseeing the tie-in state ceilings as a precondition to Board ap­ study, I will be happy to try to answer any proval of their applications. questions. □ Statement by Philip E. Coldwell, Member, through a process, which among other things Board of Governors of the Federal Reserve ensures that the need for the regulations is System, before the Committee on Governmental clearly established, meaningful alternatives are Affairs, U.S. Senate, June 15, 1979. considered and analyzed, and compliance costs, paper work, and other burdens on the public I am pleased to appear before this committee are minimized. on behalf of the Board of Governors of the In addition, the executive order mandates the Federal Reserve System to testify on S. 445, periodic review of existing regulations to deter­ the Regulatory Reform Act of 1979. This bill mine whether they are achieving the policy sets out specific procedures for the periodic goals of the order. review of regulations issued by our many federal The Federal Reserve, consistent with the agencies, with consequent revision and restruc­ purposes of the order, has adopted expanded turing when appropriate. rulemaking procedures of its own, which re­ As your committee knows, there has been one quire, in most cases, 60-day comment periods recent significant change in the approach to on regulations and more detailed analyses of the regulations, the issuance of Executive Order potential costs and benefits of regulatory and 12044 of March 23, 1978, which requires that nonregulatory alternatives. regulations of the executive agencies not impose The Board has also undertaken a regulatory unnecessary burdens on the economy, on indi­ improvement program that involves a substan­ viduals, on public or private organizations, or tive zero-base review of each Federal Reserve on state or local governments. regulation to determine (1) fundamental objec­ To achieve these objectives the executive tives and the extent to which the regulation is order requires regulations to be developed meeting current policy goals, (2) costs and ben­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 539 efits of the regulation, (3) any unnecessary bur­ less than the most productive uses through the dens imposed by the regulation, and (4) nonreg- offering of special advantages to certain indus­ ulatory alternatives that might be used to tries at the expense of consumers. accomplish the same objectives. The Board’s A balanced view needs to recognize that program also contemplates procedures for re­ much federal regulation promotes the public viewing each regulation at least once every five interest and contributes to the performance of years. the economy. For example, regulation designed Our regulatory review program has enlisted to maintain the safety and soundness of individ­ the services of the Federal Reserve Banks as ual banks is critical to the strength of the finan­ well as staff of the Board and has progressed cial system and the efficient functioning of the rapidly. The Board has issued revised versions economy as a whole. In the area of securities of Regulation K (Corporations Engaged in regulation the Securities and Exchange Com­ Foreign Banking under the Federal Reserve mission disclosure requirements help make Act), Regulation O (Loans to Executive Of­ needed information available to aid investor ficers), and Regulation V (Loan Guarantees for decisionmaking and increase the efficiency of Defense Production). The Board, as part of its securities markets. But it is an important disci­ regulatory review, has also rescinded Regula­ pline to review and evaluate outstanding regu­ tion S (Bank Service Corporations) and Regula­ lations on a periodic basis to see whether they tion E (State and Local Warrants). are still justified, can be simplified, or need to Although much has been accomplished under be modernized in light of recent developments. Executive Order 12044, the Board supports the While the Board agrees with the general basic objectives of S. 445. We are keenly aware thrust and objectives of S. 445, there are certain that government regulation of various aspects key features with respect both to its coverage of economic activity may introduce distortions and method of implementation that we believe and inequities into the economy. Despite laud­ need to be revised. We are especially concerned able objectives, there is little doubt that both with the so-called sunset provisions that require federal legislation and the regulations imple­ the termination of, first, regulatory enforcement menting that legislation have sometimes resulted authority and, second, the entire agency in the in a lessening in competition, a reduced resil­ event that no reform plans are enacted within ience in dealing with economic change, and a the prescribed time period. There are several higher and more rigid structure of costs and reasons for questioning the advisability of using prices, which the consuming public must inevi­ such a strong forcing mechanism in order to tably bear. assure that the necessary regulatory reform will It is clear also that regulation has contributed take place. to the inefficient use of real resources in the First, many federal agencies, pursuant to their economy. When regulated businesses are pre­ legislative mandates, perform a variety of func­ cluded from competing directly on a price basis, tions that are not basically regulatory in nature they are likely to adopt indirect means of pro­ but that may still depend in part for their imple­ moting their business. Banks and other deposi­ mentation on enabling rules, orders, and regu­ tary institutions, for example, frequently offer lations. In the case of the Federal Reserve free services and give away merchandise in their Board, for example, such responsibilities in­ efforts to attract new funds when price competi­ clude the following: (1) its central banking tion is limited by interest rate ceilings on de­ function with regard to international finance; (2) posits. the formulation and implementation of monetary Federal law and regulation have sometimes policy; (3) oversight activities with respect to had the effect of fostering monopolistic and the Federal Reserve Banks, which in turn play cartel-like behavior on the part of ostensibly a pivotal role in the operation of the nation’s competing firms by insulating these firms from payments system; (4) its rules for the adminis­ the discipline of effective competition. On other tration of the discount window, through which occasions, regulatory action may preserve the the Federal Reserve System serves as the lender inefficient marginal firm, or divert resources to of last resort to the banking system and, in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

540 Federal Reserve Bulletin □ July 1979 critical situations, to the economy as a whole; I understand that the committee is also inter­ and (5) the supervision of member banks and ested in the Board’s views on Title V of S. 2, bank holding companies. In comparison with the Sunset Act of 1979. We believe that Title these functions, the Board’s strictly regulatory V provides for a more realistic regulatory review responsibilities for banking and finance, includ­ covering fewer programs over a time span that ing its role in consumer credit protection, ac­ is two years longer. In addition, the fact that count for a relatively small portion of the the Board of Governors is not included among agency’s efforts or for the impact of its actions the agencies subject to regulatory review under on the economy. section 502(a)(1) appears to confirm our as­ The coverage of S. 445, in the case of the sumption that the Board’s functions relating to banking agencies, specifically refers to their monetary policy, central banking, oversight of “regulation of banking and finance.” It would the Federal Reserve Banks, and use of the appear, therefore, that the intent is not to dis­ discount window are not subject to review and continue all nonregulatory functions, or to dis­ termination under the bill. In general, we be­ mantle an entire agency, for want of reform lieve that clarification is needed to be certain plans to cover the agency’s regulatory functions. that the termination procedures of Title I are We believe that the Congress would not want not applicable to programs that are essential to to risk the abolishment or suspension, even the functioning of government and the nation’s temporarily, of the conduct of monetary policy economy. or the supervision of banks. Similarly, we The Board has a second concern about the would be deeply concerned if there were no sunset mechanism. Instead of easing the reg­ central oversight of the operation of the Reserve ulatory climate, the abrupt termination of even Banks and the payments mechanism, or of the the regulatory functions of federal agencies discount window function. might present obstacles to the efficient function­ Such potential problems are by no means ing of the economy. Federal statutes are gener­ unique to the Federal Reserve Board. For ex­ ally implemented by way of agency regulations, ample, what would become of the deposit in­ and in many cases agency approval pursuant to surance function of the Federal Deposit Insur­ those regulations is necessary before individuals ance Corporation or of its role with respect to or firms can participate in certain activities or the banks requiring liquidation? I should also markets. point out that the Comptroller of the Currency In the event the sunset provisions of S. 445 is the chartering and supervisory authority for were triggered by lack of action on bank national banks, and these activities, too, would regulatory reform, under one possible interpre­ be suspended in the event of termination of that tation this would mean that institutions seeking agency. Surely these functions should continue. Board approval would be hampered—not For these reasons, we must assume that the freed—for lack of a regulatory process. Thus, bill is directed to the purely regulatory activities for example, as the Bank Holding Company Act of the agencies and would not, in the case of is written, it is unlawful for a bank holding the Federal Reserve Board, encompass central company to be formed without the express ap­ banking, monetary policy, oversight of the Re­ proval of the Board of Governors. Similarly, serve Banks, operation of the discount mecha­ existing bank holding companies wishing to nism, bank supervision, and the incidental reg­ expand or to engage in new activities would be ulations of the Federal Reserve necessary to denied the opportunity to have their applications carry out these functions. for Board approval reviewed and acted upon. However, in order to avoid any doubt about The same situation would exist with respect to the continuation of these essential functions, the applications to the Board for new branch of­ Board would urge a narrower and more specific fices, to establish Edge corporations, to engage delineation of the aspects of regulation of bank­ in foreign banking activities requiring Board ing and finance to be covered by the bill, to approval, or for permission to issue new debt which the application of these sunset provisions or equity securities—to name a few. The result would then be directed. could be severe inequities for firms that could Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 541 not obtain Board approval to engage in activities provisions of the bill to be somewhat vague and that may have already been authorized for their suggest that some clarification would be helpful. competitors. This leads me to one final comment. The This brings me to another question as to Board and its staff have devoted considerable whether the regulatory reform proposal in itself time to the promulgation of regulations required will accomplish the desired purpose of the bill. by the Financial Institutions Regulatory and Since most agency rules and regulations are Interest Rate Control Act of 1978. Our recent issued pursuant to the mandates of specific laws experiences suggest to me that it might be and to carry out congressional intent, it may desirable for the Congress to make more explicit be that many of the economic problems and evaluations of relative benefits and burdens to inequities caused by regulation are rooted in the the public and to the industry that would result enabling legislation itself, rather than in the from new statutory requirements and when the specific form the regulations have taken. costs of such requirements are substantial, to I would suggest, therefore, that consideration consider alternatives. It may also be desirable, be given to broadening the scope of the review a year or so after the promulgation of new contemplated in the Regulatory Reform Act to regulations, for the appropriate committees of encompass, where necessary, review and reform the Congress to review the impact of the regu­ of the enabling legislation as well as existing lations and entertain suggestions for revision of regulations. I believe progress in improving and the statutory requirements when appropriate. simplifying our federal regulatory apparatus Our objectives are the same—to reduce the would often require basic amendments to un­ burden of regulation. We hope the Congress and derlying statutes. the regulatory agencies will work cooperatively It appears that the incorporation of the regu­ toward this end. latory review procedures in Title V of S. 2 as In conclusion, I wish to reiterate that the a part of the general program review contem­ Board supports the basic concepts of the Regu­ plated by that bill would probably lead to such latory Reform Act but believes that further at­ a review of underlying statutes. However, we tention should be given to problems of its scope find the interrelation of Title V with the other and implementation. □ Governor Coldwell submitted similar testimony to the Subcommittees on the Legislative Process and on Rules, U.S. House of Representatives, June 20, 1979. Statement by J. Charles Partee, Member, Board several minor amendments to help ensure of Governors of the Federal Reserve System, achievement of the bill’s objectives. Before before the Subcommittee on Financial Institu­ turning to our specific concerns, however, I tions of the Committee on Banking, Housing would like to review briefly the reasons for the and Urban Affairs, U.S. Senate, June 27, 1979. Board’s support of the broad thrust of S. 1347; these arguments have been developed in greater I am pleased to appear today on behalf of the detail in my testimony of May 15, 1979, before Federal Reserve Board to discuss S. 1347, the the Subcommittee on Financial Institutions of Depository Institutions Deregulation Act of the House Banking Committee. 1979. The Board supports strongly the princi­ Our endorsement of the principle of interest ples underlying each of the major provisions of payments on transactions balances at all deposi­ the bill. Indeed, we believe that S. 1347 pro­ tary institutions is based , on considerations of vides a workable framework for accomplishing equity and economic efficiency. Many larger desired, gradual changes in the structure of our depositors who are well informed already earn financial system, although we would propose something approaching market rates of return Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

542 Federal Reserve Bulletin □ July 1979 on their transactions balances, either through anticompetitive and that they have a particularly implicit returns in the form of banking services inequitable impact on the small saver. More­ provided below cost or by placing some of their over, by reducing the ability of depositary insti­ funds in interest-bearing, short-term invest­ tutions to compete for funds, ceilings subject ments that can be mobilized quickly for trans­ such institutions to significant periods of disin­ actions purposes. As a matter of equity, it is termediation whenever market interest rates are only proper that smaller, less sophisticated de­ cyclically high. However, while the elimination positors have similar opportunities. Moreover, of deposit-rate ceilings is by itself highly de­ authorization of the payment of interest on sirable, this process must be a gradual one. transactions accounts would enable financial in­ Many of the factors that caused the Congress stitutions to compete directly for funds and to to establish the framework for coordinated rate charge for services on the basis of costs in­ ceilings in 1966 are still at work. Thrift institu­ curred. This environment should promote a tions, because of constraints on the kinds of more efficient use of resources by both con­ assets they hold, still are unable to pay marketsumers and producers of financial services. oriented rates of return on all deposit liabilities Although the Board thus favors the principle when those rates are high. Before the thrifts can of permitting interest on all transactions ac­ compete in such an environment—without counts, we believe that progress toward such jeopardizing the financial solvency and stability an environment should be gradual. Orderly of individual institutions—reform of thrift asset change might best be achieved by extending an powers is necessary. activity with which experience has already been In light of these considerations, the Board gained; thus, nationwide negotiable order of agrees that the plan for phasing out deposit-rate withdrawal (NOW) accounts would be a logical ceilings should proceed in tandem with expan­ extension of existing programs in New England sion of the asset powers of thrift institutions. and New York. Moreover, our concern with We support those provisions of S. 1347 that transitional problems in the move to interest on would accomplish this, including the temporary transactions accounts suggests that NOWs federal preemption of existing state usury ceil­ should be subject to a deposit-rate ceiling in the ings on mortgage rates, which would oblige the short run. Staff analysis at the Board suggests states to reconsider such ceilings in light of that, without deposit-rate ceilings set by coordi­ existing economic realities. We also endorse the nated action of the regulatory agencies, the recent regulatory move authorizing federally actual cost of NOW account funds to financial chartered savings and loans to issue variableinstitutions might rise temporarily by several rate mortgages and thereby achieve a more percentage points above the rate that is sustain­ flexible return on part of their loan portfolios. able in the long run in those states gaining NOW And, allowing thrift institutions to hold up to powers for the first time. While resulting earn­ 10 percent of assets in consumer loans and ings reductions would not pose major problems various money market instruments, as provided for most commercial banks, they would be in S. 1347, would help thrift institutions to serious for some individual institutions. The shorten the effective maturity structure of their impact could be especially marked for thrift assets, so that portfolio returns could rise and institutions, which could be expected to com­ fall more nearly in unison with market rates. pete vigorously with banks for the new interest- At the same time, this limited expansion in bearing transactions account business. The portfolio possibilities would not likely have a Board therefore supports the interest rate ceiling significantly adverse impact on mortgage flows, on NOWs contained in S. 1347—a ceiling that given the expanding range of sources of mort­ would be phased out gradually in concert with gage credit and the increasing experience of all deposit-rate ceilings. thrifts in the packaging of mortgages for sale The Board has long advocated the gradual through such devices as passthrough securities. removal of interest rate ceilings on deposits. Let me turn now to the Board’s strong en­ Most economists believe that these ceilings are dorsement of the provisions of S. 1347 requiring Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 543 NOW accounts at all financial institutions to be as to allow more flexibility in dealing with the subject to Federal Reserve reserve requirements. problems of transition. As an alternative, we The setting of reserve ratios on transactions recommend that the Board, after consultation balances is an important tool of monetary policy with other regulatory agencies, be permitted to and, as such, needs to be controlled by the waive scheduled half-yearly rate increases up nation’s central bank. Further, it is essential that to three times during the eight-year phaseout required reserves on all transactions balances be without need to reinstate the scheduled in­ held in the form of vault cash or in balances creases. This added flexibility to the phaseout held at (or passed through to) Federal Reserve schedule would, we believe, reduce the chances Banks; otherwise, the System’s ability to con­ that earnings problems during the transition pe­ trol reserve availability is compromised. Fi­ riod might become crippling to financial institu­ nally, in order to exercise control over transac­ tions. And, even if the scheduled increases of tions balances, the central bank must have reas­ 25 basis points need to be foregone for the onable control over the total amount of reserves maximum number of times, ceiling rates at the supporting these balances. In our view, univer­ conclusion of the phaseout still would be 325 sal reserve requirements on NOWs are a step basis points above current rates. in the right direction toward universal reserve A second concern we have is that the sched­ requirements on all transactions • balances. uled increases in ceiling rates appear to apply However, passage of S. 1347 would leave to money market certificates (MMCs) and to the serious problems unresolved—both in terms of new savings certificate with a variable rate ceil­ monetary control and institutional equity— ing tied to the yield on four-year government which I will note later in my testimony. securities. These instruments are broadly de­ I turn now to some particular difficulties we signed to key permissible deposit rates of return have with S. 1347. I will note only our major to the market and the Board sees no reason for concerns and have asked Board staff to com­ including them under the proposed legislation. municate other minor, technical suggestions to Indeed, under the scheduled phaseout, ceilings the committee’s staff. on MMCs would quickly rise above the rates First, while the Board strongly supports the on corresponding Treasury instruments—which phasing out of deposit-rate ceilings, we believe is tantamount to removing ceilings on these that the regulatory agencies should be able to deposits and ignoring the problems of the tran­ respond flexibly to circumstances created by the sition period, which otherwise have been so transition to a ceiling-free environment. For carefully addressed in the bill. The Board rec­ example, it is conceivable that, even with ommends instead that the existing variable-rate broadened asset powers, portfolio returns at instruments be exempted from the scheduled thrift institutions might not rise as rapidly as phaseout; of course, ceilings on such instru­ deposit costs—leading to serious earnings ments should be eliminated, along with those squeezes at a sizable number of individual in­ on other deposit categories, by 1990. stitutions. Prudence could suggest delaying an Finally, the Board believes that the range for increase in ceiling rates at one or more points the reserve ratio on NOW accounts as proposed in the transition period to give portfolio returns in the bill—3 to 22 percent—is much wider than a chance to catch up to deposit costs. Under is necessary. It seems highly unlikely that any­ our interpretation of the bill, however, any delay thing like a reserve ratio of 22 percent would in implementing the scheduled phaseout would be needed for the effective conduct of monetary have to be fully “made up” within 12 months. policy, and we would suggest instead a range Thus, following such a delay, the bill would of 4 to 12 percent (which is the same range seem to require ceiling rates to jump 50 basis as is proposed in H.R. 7). points, possibly at a time when the viability of In closing, I would like to return to the issue thrift institutions might be particularly strained. of reserve requirements and the exposure to For this reason, the Board prefers that the rapid attrition in the number of Federal Reserve “catchup” provision of the bill be deleted so member banks—a subject on which the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

544 Federal Reserve Bulletin □ July 1979 has testified with some frequency in recent by our experience of recent years in New Eng­ months. The introduction of NOW accounts, the land—where the introduction of NOWs placed phaseout of deposit-rate ceilings, and the ex­ particular pressure on bank earnings, and mem­ pansion of asset powers for thrift institutions all bership withdrawals in that region increased will serve to increase competition in the finan­ dramatically. cial sector. The resulting downward pressure on Thus, the Board strongly urges prompt action institutional earnings, at least during an interim by the committee on S. 85 and related bills in period, seems likely to make member banks the recognition that congressional passage of S. even more acutely aware of the costs of mem­ 1347 would exacerbate the Federal Reserve’s bership and could sharply accelerate the rate of membership problem and thereby hamper its membership attrition. This outcome is suggested conduct of monetary policy. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

545 Announcements Emmett J. Rice: Bank), the International Development Asso­ ciation, and the International Finance Cor­ A ppointment as a M ember poration. of the B oard of Governors From 1970 to 1971 Rice was executive President Carter on April 12, 1979, announced director of the Mayor’s Economic Develop­ his intention to appoint Emmett J. Rice as a ment Committee for Washington, D.C., on leave from the Treasury Department. Since member of the Board of Governors of the Fed­ 1972 he has been senior vice president of eral Reserve System. Mr. Rice’s appointment the National Bank of Washington. was subsequently confirmed by the Senate on June 12. The oath of office was administered on June 20 in the Board’s offices and on June Regulation K: R evision 26 by Vice President Mondale at a White House The Federal Reserve Board has revised its Reg­ ceremony. ulation K (International Banking Operations) The text of the White House announcement governing corporations engaged in international follows: banking and financial operations, known as The President announced that he will nom­ Edge corporations, to conform with the Interna­ inate Emmett J. Rice, of Washington, D.C., tional Banking Act of 1978. to be a member of the Board of Governors At the same time, the Board revised and of the Federal Reserve System. consolidated into Regulation K provisions of Rice, 59, was born in Florence, South Caro­ other regulations dealing with foreign operations lina. He received a B.B.A. (1941) and an of U.S. banks (Regulation M) and foreign in­ M.B.A. (1942) from City College of New York, and a Ph.D. in economics from the vestments by bank holding companies (Regula­ University of California at Berkeley in 1955. tion Y). Regulation K also incorporates a num­ He served in the U.S. Air Force from 1942 ber of Board policy positions in the field of to 1946. international banking that had previously been In 1950 and 1951 Rice was a research as­ developed on a less formal basis. sistant in economics at Berkeley, and in As now constituted, Regulation K includes 1952 he was a research associate at the rules for (1) the ownership of Edge corporations Reserve Bank of India as a Fulbright Fellow. and their operation in the United States, (2) In 1953-54 he was a teaching assistant at Berkeley. overseas activities and investments of Edge corporations, member banks, and bank holding From 1954 to 1960 Rice was an assistant companies, (3) lending limits and capital re­ professor of economics at Cornell Univer­ sity. From 1960 to 1962 he was on leave quirements for Edge corporations and other from Cornell to work as an economist at the regulatory restrictions on international opera­ Federal Reserve Bank of New York. From tions, and (4) authorization for the establishment 1962 to 1964 he was an advisor to the and operation of foreign branches of member Central Bank of Nigeria in Lagos. banks. From 1964 to 1966 Rice was deputy direc­ The new regulation, which was effective June tor, then acting director, of the Treasury 14, 1979, thus brings together in one place the Department’s Office of Developing Nations. Board’s rules regarding the international activi­ From. 1966 to 1970 he was U.S. alternate executive director for the International Bank ties of U.S. banks, bank holding companies, for Reconstruction and Development (World and Edge corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

546 Federal Reserve Bulletin □ July 1979 In making these changes, the Board noted: 2. General character of the applicant’s man­ agement. In amending the Edge Act (Section 25(a) of the Federal Reserve Act) Congress declared 3. Convenience and needs of the community that Edge Corporations are to have powers to be served with respect to international bank­ sufficiently broad to enable them to compete ing and financial services. with foreign banks in the United States as well as abroad and to provide all segments 4. Effects of the proposed corporation or of the United States economy a means of branch on competition. financing international trade, and, in partic­ ular, exports. In addition, Edge Corpora­ The Board will publish in the Federal Regis­ tions are to serve as a means of fostering ter notice of proposals to form new Edge cor­ the participation of regional and smaller porations or to establish domestic branches. banks in international banking and financing The Board deferred action on a proposal to and, in general, to stimulate competition in making those services available throughout enlarge the capabilities of Edge corporations the United States. . . . that would have given them authority to provide The regulation has been issued in furtherance full banking services to customers principally of these and other objectives set forth in the engaged in international or foreign commerce. International Banking Act (IBA) after consid­ After further study the Board will publish a eration of comment received following publica­ revised version for further comment. tion by the Board of proposals for the new Edge corporations may use funds held in the regulation in February. In addition, the Board United States but not employed in international has sought to eliminate obsolete regulations, to or foreign business in the form of cash, deposits clarify existing rules, and to simplify relevant with banks, money market instruments such as regulatory and supervisory standards and proce­ bankers acceptances, obligations of federal, dures. state, or local governments or obligations fully The rules adopted differ in a number of re­ guaranteed by %them (and their instrumentali­ spects from the proposals. The principal provi­ ties), repurchase agreements, federal funds sold, sions of Regulation K are as follows. and commercial paper. The Board included in Regulation K a state­ ment of activities that Edge corporations may conduct in the United States incidental to inter­ Operation of Edge Corporations national transactions. in the United States The revised regulation allows Edge corpora­ Regulation K as revised enlarges the capabilities tions to finance the production of goods and of Edge corporations to operate in the United services for export. This may be done when the States by permitting them to establish branches customer has obtained export orders, or when in the United States with the prior approval of the items to be financed are identifiable as being the Board. Until now, a U.S. banking company directly for export. could establish separately incorporated Edge corporations at various places, but Edge cor­ Foreign Investments porations were not permitted to branch. The new by Edge Corporations, authority makes it more efficient and less costly Banks, and Bank Holding Companies for Edge corporations to enter and operate at new locations. Edge corporations are not subject The new regulation contains a list of activities to federal law that limits the power of banks that may generally be engaged in by foreign to establish branches across state lines. companies in which U.S. banking organizations The Board set forth the following standards hold a substantial ownership interest (section for consideration when acting on applications 211.5(d)). The activities specified in the regula­ to form new Edge corporations or to establish tion are those the Board has generally allowed domestic branches: foreign subsidiaries of U.S. banks because they 1. Financial condition and history of the ap­ are of a financial character or are related to plicant. international banking and financial operations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 547 For example, U.S. banking organizations may Lending Limits and Capital engage in nonbanking activities abroad that the Requirements for Edge Corporations Board has authorized under section 4(c)(8) of The Board established prudential rules for Edge the Bank Holding Company Act. corporations that accept deposits in the United Regulation K establishes uniform and simpli­ States, including the following: fied procedures for foreign or international in­ 1. Risk assets of an Edge corporation en­ vestments by Edge corporations and member gaged in banking may not exceed 7 percent of banks and bank holding companies. The regu­ capital and surplus. In general, an Edge cor­ lation establishes expedited procedures, under poration’s capital should be adequate in relation general consent provisions, for investments up to the scope and character of its activities. to $2 million for subsidiaries or joint ventures 2. Extensions of credit to one person by Edge engaged in activities permissible under the reg­ corporations engaged in banking may not ex­ ulation. Such investments in foreign companies ceed 10 percent of the corporation’s capital and may be made without specific consent by the surplus. Board. 3. Extensions of credit to one person by a Other investments in subsidiaries and joint member bank and by its Edge corporation and ventures that do not qualify under the general foreign direct and indirect subsidiaries may not consent procedures but that do not exceed 10 exceed the member bank’s lending limit. percent of capital and surplus of the investor 4. Underwriting commitments shall be may be made after 60 days’ notification to the deemed extensions of credit for purposes of Board. applying the lending limits. Underwritings of All other investments must obtain the Board’s equities by subsidiaries may not represent more prior approval. than 20 percent of an issuer’s equity or amount to more than $2 million. Foreign Branches of Edge Corporations An Edge corporation may establish branches Deposits in Edge Corporations abroad, under revised Regulation K, according to the provisions of the regulation (section The deposits of an Edge corporation in the 211.3) by which member banks may establish United States and abroad are subject to reserve foreign branches. requirements and interest rate ceilings as though they were member banks. Edge corporations may receive in the United Foreign Investment in Edge Corporations States demand, time, and savings deposits from The International Banking Act (section 3(f)) foreign governments and their agents or instru­ specifies that certain foreign or domestic finan­ mentalities, from persons conducting business cial institutions may apply to the Board for prior principally at their offices abroad, and from approval to acquire 50 percent or more of the individuals residing abroad. capital stock of an Edge corporation. In acting Deposits of the same types may be received upon applications to acquire stock of Edge cor­ in the United States from other sources if the porations made by institutions that are not sub­ deposits are to be used for purposes specified ject to the IBA or the Bank Holding Company in the regulation (section 211.4(3)(2)). Act, the Board will impose conditions regarded as necessary to prevent undue concentration of Supervision of Edge Corporations resources, decreased or unfair competition, conflicts of interest, or unsound banking prac­ Edge corporations will be examined once a year tices in the United States. A foreign financial by Federal Reserve examiners. Organizations institution may not invest more than 10 percent subject to the regulation are required to super­ of the institution’s capital and surplus in an Edge vise and administer their foreign branches and corporation. subsidiaries so as to ensure that their activities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

548 Federal Reserve Bulletin □ July 1979 conform to high standards of banking and fi­ Country Exposure nancial prudence. When investing in joint ven­ Lending Survey tures, investors must keep themselves informed The results of a survey of foreign lending by of the activities and condition of the joint ven­ large U.S. banks as of December 31, 1978, ture and must maintain files of complete infor­ were made public on June 21, 1979, by the mation on all transactions available to exam­ Office of the Comptroller of the Currency, the iners. An Edge corporation must make at least Federal Deposit Insurance Corporation, and the two reports of its financial condition to the Federal Reserve Board. The data cover claims Board yearly, at the times and in the form on foreign residents held by all domestic and prescribed by the Board. The Board may require foreign offices of 129 U.S. banking organi­ that reports of condition or other reports be zations with significant foreign banking opera­ published or made available for public inspec­ tions. tion. The results indicate that cross-border and nonlocal currency claims increased moderately Foreign Branches of Member Banks in 1978, rising 12 percent from $194 billion to The new Regulation K simplifies the regulatory $217 billion. Most of the growth represented approval process for the establishment of increased claims on banks, which are largely foreign branches by member banks. A member related to money market activities. Cross-border bank that has established branches in two or and cross-currency lending to public and private more foreign countries may establish branches nonbank borrowers increased only $2 billion in additional countries after 60 days’ notice to during the year. In addition, the survey indicates the Board. Additional branches in the same that local currency lending to local borrowers country may be established without prior notifi­ by foreign offices of U.S. banks increased $9 cation to the Board. The Board transferred to billion in 1978 to a total of $58 billion. Most Regulation K provisions of Regulation M con­ of the increase in both types of lending occurred in the second half. cerning the activities of foreign branches of member banks, with minor changes. Types of Loans Transition Rules The survey concentrated on data involving lending from a bank’s offices in one country to Transactions that have been consummated or residents of another country or lending in a activities engaged in pursuant to the Board’s currency other than that of the borrower. These general or specific consent prior to June 8, 1979, loans are known as cross-border and cross-cur­ may be retained or continued. Extensions of rency loans. credit that exceed limitations set forth in the Cross-border and cross-currency loans are regulation may remain outstanding until they those most closely associated with country risk. mature. Investors that do not meet the require­ Such claims totaled $217 billion at year-end ments of the regulation on June 14, 1979 (sec­ 1978. Claims on residents of Switzerland and tions 211.6(c) and 211.5(b)(iii) respectively), the Group of Ten (G-10) developed countries must conform their accounts and investments by represent 42 percent of this total. Another 21 June 14, 1981. percent represents claims on residents of “other The Board has considered the question of developed countries” and “offshore banking Federal Reserve membership for Edge corpora­ centers.” 1 Claims on residents of developing tions and is sending to the Congress its views countries that are not oil exporters amount to on this matter. The Board deferred action on 24 percent. the question of the appropriateness of foreign subsidiaries of U.S. banking organizations lending to U.S. residents for domestic purposes 1. Countries where multinational banks conduct a and will consider this matter separately. large international money market business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 549 In addition, the banks reported $58 billion er country are allocated to the country of the in local currency claims that were held by their head office. Since a branch is legally a part of foreign offices on residents of the country in the parent, claims on a branch are treated as which the office was located. An example would being guaranteed by the head office. Second, be Deutsche mark claims on German residents claims on a borrower in one country that are held by the German branch of the reporting U.S. formally guaranteed by a resident of another bank. To a large extent, these local currency country are allocated to the latter country. These claims were matched by $48 billion in local reallocations are thought to provide a better currency liabilities due local residents. approximation of country exposure in the banks’ portfolios than the unadjusted figures. Most of the reallocations are accounted for Maturities by the transfer of claims on branches (and, when More than two-thirds of the reported cross- guaranteed, subsidiaries) of banks to their head border and cross-country claims had a maturity offices ($41 billion out of $53 billion). In gen­ of one year or less. Only $16 billion in claims eral, the reallocations primarily affected the had a maturity in excess of five years. Short­ offshore banking centers and some of the devel­ term claims are especially prominent in the G-10 oped countries. For example, claims on the countries and in the offshore banking centers offshore banking centers decreased from $26 where a large volume of interbank lending takes billion to $7 billion and claims on the United place. Such placements of deposits are usually Kingdom decreased from $35 billion to $16 for very short periods. billion. For most less developed countries, a For most other groups of countries, short­ relatively small portion of claims is externally term claims accounted for slightly less than half guaranteed. The total of claims on foreigners of the total claims, although the proportion by country of guarantor is about $196 billion, varied among countries. or $21 billion less than the total for claims by country of borrower. This difference results from U.S. residents guaranteeing about $26 Type of Borrower billion in claims on foreign residents and for­ Business with other banks accounted for the eigners guaranteeing about $5 billion in claims largest amount, equaling $116 billion. Most of on U.S. residents. the claims were on banks located in the G-10 countries and on the offshore banking centers. Commitments to Provide Funds Private nonbank sector lending totaled $62 bil­ for Foreigners lion, and loans to the public sector amounted to $39 billion. This last category includes The survey also provided information on con­ foreign central governments, their political sub­ tingent claims on foreigners. The banks were divisions and agencies, foreign central banks, asked to report only those contingent claims for and commercial nonbank enterprises owned by which the bank had a legal obligation to provide government. The distribution by type of bor­ funds. The amounts reported total $60 billion, rower varied significantly from country to 73 percent of which constituted claims on the country. private sector, including banks. Guarantees N ew Dollar Coin Cross-border and cross-currency claims that are The Federal Reserve Board and the Department guaranteed by residents of another country are of the Treasury have announced that the new reallocated from the country of residence of the Susan B. Anthony dollar coin went into circu­ borrower to another country in two major ways. lation on July 2. First, claims on a bank branch located in one The joint Federal Reserve-Treasury statement country when the head office is located in anoth­ is as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

550 Federal Reserve Bulletin □ July 1979 The new Susan B. Anthony dollar coin, Changes in Board Staff introduced on July 2, 1979, will result in a more economical monetary system both to The Federal Reserve Board has announced the the federal government and to private in­ following official appointment, effective July 9. dustry. Commercial users will find that the Robert A. Jacobsen, Chief Examiner in faster, easier handling of the new small charge of the Bank Examinations and Bank dollar coin, as well as its anticipated wide­ spread acceptance by vending and change- Analysis Departments at the Federal Reserve making machines, will lead to more efficient Bank of New York, as Assistant Director for operations when compared with the dollar Financial Institutions Supervision, Division of bill. In addition, the federal government will Banking Supervision and Regulation. Prior to experience substantial savings in production joining the Bank’s staff in 1966, Mr. Jacobsen costs because the dollar coin can be expected to remain in circulation in good condition served with the Peoples National Bank, Belle­ for 15 years or more compared with a useful ville, New Jersey, and with the Comptroller of life of approximately 18 months for the the Currency. dollar bill. According to Federal Reserve The Board has also announced the resignation Board estimates, total savings that could be of Allen L. Raiken, Associate General Counsel achieved through reductions in printing, processing, and destruction costs for dollar in the Legal Division. bills can reach as high as $50 million a year if the coin is substituted for the dollar bill. These savings would accrue directly to the International Statistics: American taxpayer. Revised Tables Because of these significant potential sav­ ings resulting from the increased use of the Several tables in the International Statistics sec­ dollar coin, the Treasury Department and the tion of the Bulletin have been changed to Federal Reserve have initiated a study to conform to major revisions in the Treasury’s determine the currency and coin needs of the American public in the future. The study international capital forms filed by nonbanking will consider the various implications of business enterprises in the United States. Two substituting the dollar coin for the dollar bill new tables, 3.24, “Liabilities to Unaffiliated and the possible development of specific Foreigners,” and 3.25, “Claims on Unaffiliated plans for achieving that objective. Present Foreigners,” appear on pages A66 and A67. plans call for the production of both. After ampw supplies of the new dollar coin are They replace table 3.24, “Short-Term Liabili­ available, public acceptance measured, and ties to and Claims on Foreigners,” table 3.25, the above-mentioned study completed, con­ “Short-Term Claims on Foreigners,” and table tinued production of both will be reappraised 3.26, “Long-Term Liabilities to and Claims on with an eye toward the feasibility of eventual Foreigners.” One item has been added to table replacement of the dollar bill with the dollar coin. 3.18, page A62, “Banks’ Own and Domestic Customers’ Claims on Foreigners,” to incorpo­ rate a newly reported monthly figure for U.S. Some 500 million new dollar coins have dollar deposits of nonbanking business enter­ already been minted, and supplies should be prises in banks abroad. available in 94 percent of the country by the The changes in general coverage and format end of the week of July 1. of the tables include (1) the elimination of the The new coin, which bears the likeness of distinction between long- and short-term liabili­ Susan B. Anthony, costs somewhat more than ties and claims, and (2) the separation of finan­ the dollar bill to produce but lasts for 15 years. cial liabilities and claims from commercial lia­ A paper bill lasts only 18 months. bilities and claims. The coin is slightly larger than a quarter and Table 3.24 shows total liabilities reported by slightly smaller than a half dollar. nonbanking business enterprises in the United Total savings for the American taxpayer States. Liabilities are still broken down into could reach as high as $50 million a year, if amounts payable in dollars and amounts payable the coin is substituted for the bill. in foreign currencies. A further distinction is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 551 made, however, between financial and com­ S ystem M embership: mercial liabilities, and a geographic distribution A dmission of State B anks for each of the two types of liabilities is given. The following banks were admitted to member­ Table 3.25 shows total claims reported by ship in the Federal Reserve System during the nonbanking business enterprises in the United period June 11 through July 10, 1979: States. In a format similar to new table 3.24, table 3.25 separates foreign currency claims Alabama from U.S. dollar claims and financial claims Scottslboro .................Jackson County Bank from commercial claims, and a geographic dis­ New Hampshire tribution is given for each of the two types of Belmont ................Belknap Bank and Trust claims. Texas Data series begin December 1978. Kerrville ...............................Bank of Kerrville Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

552 Law Department Statutes, regulations, interpretations, and decisions Amendment to R egulation E Rescission of R egulations K, M, and part of R egulation Y The Board of Governors has adopted an amendment to Regulation E. The amendment im­ The Board of Governors has revised its regula­ plements section 909 of the Electronic Fund tions governing international banking operations. Transfer Act, which relates to consumers’ liability Current Regulations K (12 C.F.R. Part 211), M for unauthorized transfers. (12 C.F.R. Part 213), and section 225.4(f) of Regulation Y (12 C.F.R. 225.4(f)) have been Effective August 1, 1979, section 205.5(a) is revised and combined in new Regulation K (12 amended to read as follows: C.F.R. Part 211). Effective June 14, 1979, Title 12 C.F.R. is amended as follows: Section 205.5—Liability of Consumer 1. 12 C.F.R. Part 211 is deleted in its entirety. for Unauthorized Transfers 2. 12 C.F.R. Part 213 is deleted in its entirety. 3. Section 225.4(f) of 12 C.F.R. Part 225 is deleted in its entirety. (a) General rule. A consumer is liable, within the limitations described in paragraph (b) of this section, for unauthorized electronic fund transfers Revision of R egulation K involving the consumer’s account only if: The Board of Governors of the Federal Reserve (1) the access device used for the unauthorized System has revised its regulations governing the transfers is an accepted access device; international operations of member banks, Edge (2) the financial institution has provided a and Agreement Corporations, and bank holding means (such as by signature, photograph, finger­ companies. The regulation updates existing regu­ print, or electronic or mechanical confirmation) to lations and combines them in one comprehensive identify the consumer to whom the access device regulation. was issued; and Effective June 14, 1979, part 211 of 12 C.F.R. (3) the financial institution has provided the is added to read as set forth below: following information, in writing, to the con­ sumer: Contents (i) The consumer’s liability under § 205.5, or under other applicable law or agreement, for un­ Section authorized electronic fund transfers and, at the 211.1 Authority, Purpose, and Scope financial institution’s option, notice of the advis­ 211.2 Definitions ability of prompt reporting of any loss, theft, or 211.3 Foreign Branches of Member Banks unauthorized transfers. 211.4 Edge and Agreement Corporations (ii) The telephone number and address of the 211.5 Investments in Other Organizations person or office to be notified in the event the 211.6 Lending Limits and Capital Requirements consumer believes that an unauthorized electronic 211.7 Supervision and Reporting fund transfer has been or may be made. (iii) The financial institution’s business days, as Section 211.1— determined under § 205.2(d), unless applicable Authority, Purpose, and Scope State law or an agreement between the consumer and the financial institution sets a liability limit (a) Authority. This Part is issued by the Board not greater than $50. of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

553 (“Board”) under the authority of the Federal Re­ (g) “Foreign bank” means an organization serve Act (12 U.S.C. 221 et seq.) (“FRA”); the that: is organized under the laws of a foreign Bank Holding Company Act of 1956 (12 U.S.C. country; engages in the business of banking; is 1841 et seq.) (“BHCA”); and the International recognized as a bank by the bank supervisory or Banking Act of 1978 (92 Stat. 607) (“IBA”). monetary authority of the country of its organi­ zation or principal banking operations; receives (b) Purpose and Scope. This Part is in further­ deposits to a substantial extent in the regular ance of the purposes of the FRA, the BHCA, and course of its business; and has the power to accept the IBA. It applies to corporations organized under demand deposits. section 25(a) of the FRA (12 U.S.C. 611-631), (h) “Foreign branch” means an office of an “Edge Corporations”; to corporations having an institution which is located outside the country agreement or undertaking with the Board under under the laws of which the institution is organ­ section 25 of the FRA (12 U.S.C. 601-604(a)), ized, at which a banking or financing business is “Agreement Corporations”; to member banks conducted. with respect to their foreign branches and invest­ (i) “Investment” means the ownership or con­ ments in foreign banks under section 25 of the trol of shares, including binding commitments to FRA (12 U.S.C. 601-604(a));1 and to bank hold­ acquire shares, and other contributions to the cap­ ing companies with respect to the exemption from ital accounts of an organization, including the the nonbanking prohibitions of the BHCA afforded holding of an organization’s subordinated debt by section 4(c)(13) of the BHCA (12 U.S.C. when shares of stock of the organization are also 1843(c)(13)). held directly or indirectly by an investor. (j) “Investor” means an Edge Corporation, Agreement Corporation, bank holding company, Section 211.2—Definitions or member bank. (k) “Joint venture” is an organization 20 per For the purposes of this Part: cent or more of the voting stock of which is held (a) An “affiliate” of an organization means any directly or indirectly by an investor or by an company of which the organization is a direct or affiliate of the investor, but which is not a subsidi­ indirect subsidiary, any other direct or indirect ary of the investor. subsidiary of that company, and any direct or (1) “Listed activities” means the activities indirect subsidiary of the organization. specified in section 211.5(d). (b) “Capital and surplus” means paid-in and (m) “Organization” means a corporation, gov­ unimpaired capital and surplus, and includes un­ ernment, partnership, association, or any other divided profits but does not include the proceeds legal or commercial entity. of capital notes or debentures. (n) “Person” means an individual or an orga­ (c) “Directly or indirectly” when used in ref­ nization. erence to activities or investments of an organi­ (o) “Portfolio investment” means an invest­ zation means activities or investments of the orga­ ment in an organization other than a subsidiary nization or of any subsidiary of the organization. or joint venture. (d) An Edge Corporation is ‘ ‘engaged in bank­ (p) “Subsidiary” means an organization more ing” if it is ordinarily engaged in the business than 50 per cent of the voting stock of which is of accepting deposits in the United States from held directly or indirectly by the investor, or which nonaffiliated persons. is otherwise controlled or capable of being con­ (e) “Engaged in business in the United States” trolled by the investor or an affiliate of the investor. means maintaining and operating an office (other than a representative office) or subsidiary in the Section 211.3— United States. Foreign Branches of Member Banks (f) “Foreign” or “foreign country” refers to one or more foreign nations, and includes the (a) Establishment of foreign branches. A mem­ overseas territories, dependencies, and insular ber bank may establish a foreign branch with prior possessions of those nations and of the United approval of the Board. Unless otherwise advised States, and the Commonwealth of Puerto Rico. by the Board: (1) a member bank that has branches in two or more foreign countries may establish 1. Section 25 of the FRA, which refers to national banking initial branches in additional foreign countries after associations, also applies to State member banks of the Federal 60 days’ notice to the Board; and (2) without prior Reserve System by virtue of section 9 of the FRA (12 U.S.C. 321). approval or prior notice, a member bank may Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

554 Federal Reserve Bulletin □ July 1979 establish additional branches in any foreign ment, and obligations of a municipality or other country in which it operates one or more branches. local or regional governmental entity of the Authority to establish branches through prior ap­ country; however, no member bank may hold, or proval or prior notice shall expire one year from be under commitment with respect to, obligations the earliest date on which it could have been of the government or governmental entities of a exercised, unless extended by the Board. A mem­ country as a result of underwriting, dealing, or ber bank shall inform the Board within 30 days purchasing for the bank’s own account an aggre­ of the opening, closing or relocation of a branch gate amount exceeding 10 per cent of the member and the address of a new or relocated foreign bank’s capital and surplus; branch. (5) take liens or other encumbrances on foreign real estate in connection with its extensions of (b) Further Powers of Foreign Branches. In credit, whether or not of first priority and whether addition to its general banking powers, and to the or not the real estate is improved or has been extent consistent with its charter, a foreign branch appraised, and without regard to maturity or of a member bank may engage in the following amount limitations or amortization requirements of activities so far as usual in connection with the section 24 of the FRA (12 U.S.C. 371); business of banking in the country where it trans­ (6) extend credit up to $100,000 or its equiva­ acts business: lent to an officer of the bank residing in the country (1) guarantee customers’ debts or otherwise in which the foreign branch is located to finance agree for their benefit to make payments on the the acquisition or construction of living quarters occurrence of readily ascertainable events,2 if the to be used as the officer’s residence abroad, pro­ guarantee or agreement specifies a maximum vided any such credit extension is reported monetary liability; but, except to the extent that promptly to the branch’s home office; however, the member bank is fully secured, it may not have when necessary to meet local housing costs, such liabilities outstanding for any person on account amount may be exceeded with the specific prior of such guarantees or agreements which when approval of the member bank’s board of directors; aggregated with other obligations of the same (7) act as insurance agent or broker; person exceed the limit contained in section 5200 (8) pay to an employee of the branch, as part of the Revised Statutes (12 U.S.C. 84); of an employee benefit program, a greater rate of (2) accept drafts or bills of exchange drawn interest than that paid to other depositors of the upon it subject to the amount limitations of section branch; and 13 of the FRA (12 U.S.C. 372); (9) engage in repurchase arrangements involv­ (3) invest in (i) the securities of the central ing commodities and securities that are the func­ bank, clearing houses, governmental entities, and tional equivalent of extensions of credit. government-sponsored development banks of the country in which the foreign branch is located, (c) Other Permissible Activities. A member (ii) other debt securities eligible to meet local bank that is of the opinion that activities other than reserve or similar requirements, and (iii) shares those specified in this section are usual in connec­ of professional societies, schools, and the like tion with the transaction of the business of banking necessary to the business of the branch; however, in the places where its branches transact business the branch’s total investments under this provision may apply to the Board for permission to engage (exclusive of securities held as required by the law in such activities. of that country or as authorized under section 5136 (d) Reserves. Reserves shall be maintained of the Revised Statutes (12 U.S.C. 24)) shall not against foreign branch deposits when required by exceed one per cent of its total deposits on the Part 204 of this Chapter (Regulation D). preceding year-end call report date (or on the date of acquisition in the case of a newly established branch that has not so reported); Section 211.4— (4) underwrite, distribute, buy, and sell obliga­ Edge and Agreement Corporations tions of the national government of the country in which the branch is located, obligations of an (a) Organization. (1) A proposed Edge Cor­ agency or instrumentality of the national govern­ poration shall become a body corporate when the Board issues a preliminary permit approving its 2. “Readily ascertainable events” include, but are not lim­ proposed name, articles of association, and orga­ ited to, events such as nonpayment of taxes, rentals, customs nization certificate. The name shall include “in­ duties, or costs of transport and loss or nonconformance of shipping documents. ternational,” “foreign,” “overseas,” or some Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 555 similar word, but may not resemble the name of amount invested in Edge Corporations by a foreign another organization to an extent that might mis­ institution shall not exceed 10 per cent of the lead or deceive the public. The factors that will foreign institution’s capital and surplus. be considered by the Board in acting on a proposal to organize an Edge Corporation include: (c) Branches. (1) With prior Board approval, an Edge Corporation may establish branches in the (1) the financial condition and history of the United States. In acting on a proposal to establish applicant; a branch in the United States, the Board will (ii) the general character of its management; consider the same factors enumerated in section (iii) the convenience and needs of the commu­ 211.4(a)(1). The Board will publish in the Federal nity to be served with respect to international banking and financing services; and Register notice of any proposal to establish a branch in the United States and will give interested (iv) the effects of the proposal on competition. persons an opportunity to express their views on The Board will publish in the Federal Register the proposal. notice of any such proposal and will give interested (2) An Edge Corporation may establish branches persons an opportunity to express their views on the proposal. abroad in accordance with the procedures in sec­ tion 211.3(a). (2) After the Board issues a preliminary permit, the Edge Corporation may elect officers and other­ (d) Reserve Requirements and Interest Rate wise complete its organization, invest in obliga­ Limitations. The deposits of an Edge Corporation tions of the United States Government, and main­ are subject to Parts 204 and 217 of this Chapter tain deposit with banks, but it may not exercise (Regulations D and Q) in the same manner and any other powers until the Board has issued a final to the same extent as if the Edge Corporation were permit to commence business. No amendment to a member bank. the articles of association shall become effective until approved by the Board. (e) Permissible Activities in the United States. An Edge Corporation may engage in activities in (b) Nature and Ownership of Shares. (1) the United States that are permitted by the sixth Shares of stock in an Edge Corporation may not paragraph of section 25(a) of the FRA and in such include no-par value shares and shall be issued other activities as the Board determines are inci­ and transferred only on its books and in compli­ dental to international or foreign business. The ance with section 25(a) of the FRA. The share following activities will ordinarily be considered certificates of an Edge Corporation shall (i) name incidental to an Edge Corporation’s international and describe each class of shares indicating their or foreign business: character and any unusual attributes such as pre­ ferred status or lack of voting rights; and (ii) (1) Deposits from foreign governments and conspicuously set forth the substance of (A) limi­ persons. An Edge Corporation may receive in the tations upon the rights of ownership and transfer United States demand, savings, and time deposits of shares imposed by section 25(a) of the FRA, (including negotiable certificates of deposits) from and (B) rules that the Edge Corporation shall foreign governments and their agencies and in­ prescribe in its by-laws to ensure compliance with strumentalities, persons conducting business this paragraph. Any change in status of a share­ principally at their offices or establishments holder that causes a violation of section 25(a) of abroad, and individuals residing abroad. the FRA shall be reported to the Board as soon as possible, and the Edge Corporation shall take (2) Deposits from other persons. An Edge Cor­ such action as the Board may direct. poration may receive in the United States demand, (2) One of more foreign or domestic institutions savings, and time deposits (including negotiable referred to in section 3(f) of the IBA may apply certificates of deposit) if such deposits: for the Board’s prior approval to acquire a majority (i) are to be transmitted abroad; of the shares of the capital stock of an Edge (ii) consist of collateral or funds to be used for Corporation. In acting on an application by a payment of obligations to the Edge Corporation; foreign institution that is not subject to the IBA (iii) consist of the proceeds of collections or the BHC A, the Board will impose any condi­ abroad that are to be used to pay for exported or tions that are necessary to prevent undue concen­ imported goods or for other costs of exporting or tration of resources, decreased or unfair competi­ importing or that are to be periodically transferred tion, conflicts of interest, or unsound banking to the depositor’s account at another financial practices in the United States. The aggregate institution; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

556 Federal Reserve Bulletin □ July 1979 (iv) consist of the proceeds of extensions of if the guarantee or agreement specifies the maxi­ credit by the Edge Corporation; or mum monetary liability thereunder and is related (v) represent compensation to the Edge Cor­ to a type of transaction described in paragraphs poration for extensions of credit or services to the (4)(iv) and (4)(v) of this section; customer. (viii) receive checks, bills, drafts, acceptances, notes, bonds, coupons, and other securities for (3) Use of funds in the United States. Funds collection abroad, and collect such instruments in of an Edge Corporation not currently employed the United States for a customer abroad; in its international or foreign business, if held or (ix) hold securities in safekeeping for, or buy invested in the United States, shall be in the form and sell securities upon the order and for the of cash, deposits with banks, and money market account and risk of a person; instruments such as bankers’ acceptances, obliga­ (x) act as paying agent for securities issued by tions of or fully guaranteed by Federal, State, and foreign governments or other entities organized local governments and their instrumentalities, under foreign law; repurchase agreements, Federal funds sold, and (xi) act as trustee, registrar, conversion agent, commercial paper. or paying agent with respect to any class of se­ (4) General activities. Subject to the limitations curities issued to finance foreign activities and of section 25(a) of the FRA and section 211.6 of distributed solely outside the United States; this Part, an Edge Corporation may engage in the (xii) make private placements of participations following activities to the extent consistent with in its investments and extensions of credit; how­ ever, except to the extent permissible for member sound banking practices: (i) issue obligations to domestic offices of other banks under section 5136 of the Revised Statutes (12 U.S.C. 24), no Edge Corporation may other­ banks (including purchases of Federal funds) or to the United States or any of its agencies; wise engage in the business of selling or distrib­ uting securities in the United States; and (ii) incur indebtedness from a transfer of direct (xiii) buy and sell spot and forward foreign obligations of, or obligations that are fully exchange. guaranteed as to principal and interest by, the United States or any agency thereof that the Edge (5) Other permissible activities. An Edge Cor­ Corporation is obligated to repurchase; poration that is of the opinion that other activities (iii) issue long-term subordinated debt that does in the United States would be incidental to its not qualify as a “deposit” under Part 204 of this international or foreign business may apply to the Chapter (Regulation D); Board for such a determination. (iv) finance the following: (A) contracts, proj­ ects, or activities performed substantially abroad; (f) Agreement Corporations. With the prior (B) the importation into or exportation from the approval of the Board, a member bank or bank United States of goods, whether direct or through holding company may invest in a federally or State brokers or other intermediaries; (C) the domestic chartered corporation that has entered into an shipment or temporary storage of goods being agreement or undertaking with the Board that it imported or exported (or accumulated for export); will not exercise any power that is impermissible and (D) the assembly or repackaging of goods for an Edge Corporation under this Part. imported or to be exported; (v) finance the costs of production of goods and services for which export orders have been re­ Section 211.5— ceived or which are identifiable as being directly Investments in Other Organizations for export; (a) General Policy. Activities of investors (vi) assume or acquire participations in exten­ abroad, whether conducted directly or indirectly, sions of credit, or acquire obligations arising from shall be confined to those of a banking or financial transactions the Edge Corporation could have fi­ nature and those that are necessary to carry on nanced; such activities. In doing so, investors shall at all (vii) guarantee a customer’s debts or otherwise times act in accordance with high standards of agree for the customer’s benefit to make payments banking or financial prudence, having due regard on the occurrence of readily ascertainable events,3 for diversification of risks, suitable liquidity, and 3. “Readily ascertainable events” include, but are not lim­ adequacy of capital. Subject to these consid­ ited to, events such as nonpayment of taxes, rentals, customs erations and the other provisions of this section, duties, or costs of transport and loss or nonconformance of shipping documents. it is the Board’s policy to allow activities abroad Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 551 to be organized and operated as best meets cor­ determined to be permissible; or in the case of porate policies. joint venture, it engages in an impermissible ac­ tivity beyond that described in paragraph (b)(l)(ii) (b) Investment Limitations. (1) An investor, in of this section; or accordance with the investment procedures de­ (iii) after notice and opportunity for hearing, scribed in paragraph (c) of this section, may di­ the investor is advised by the Board that its in­ rectly or indirectly: vestment is inappropriate under the FRA, the (1) invest in a subsidiary that engages solely in BHC A, or this Part. listed activities or in such other activities as the Board has determined in the circumstances of a (c) Investment Procedures.5 Direct and indirect particular case are permissible; investments shall be made in accordance with the (ii) invest in a joint venture provided that, general consent, notice, or specific consent proce­ unless otherwise permitted by the Board, not more dures contained in this section. The Board may than 10 per cent of the joint venture’s consolidated at any time, upon notice, suspend the general assets or revenues shall be attributable to activities consent and notification procedures with respect that would not be permissible for a subsidiary; to any investor or with respect to the acquisition (iii) make portfolio investments (including se­ of 'shares of companies engaged in particular kinds curities held in trading or dealing accounts) in an of activities. An investor must receive prior spe­ organization if the total direct and indirect portfo­ cific consent of the Board for investment in its lio investments in organizations engaged in activi­ first subsidiary, its first joint venture, and its first ties that are not permissible for joint ventures does portfolio investment unless an affiliate has made not at any time exceed 100 per cent of the inves­ such investments. Authority to make investments tor’s capital and surplus.4 under prior notice or prior consent shall expire one (2) A member bank’s direct investments under year from the earliest date on which it could have section 25 of the FRA shall be limited to foreign been exercised, unless extended by the Board. banks and to foreign organizations formed for the (1) General consent. The Board grants its gen­ sole purpose of either holding shares of a foreign eral consent for the following: bank or performing nominee, fiduciary, or other (i) any investment in a joint venture or subsidi­ banking services incidental to the activities of a ary, and any portfolio investment, if: foreign branch or foreign bank affiliate of the (A) the organization is not engaged in business member bank. in the United States; and (3) Subsidiaries may establish branches in ac­ (B) the total amount invested does not exceed cordance with the procedures set forth in section the lesser of (1) $2 million or (2) five per cent 211.3(a). of the investor’s capital and surplus in the case (4) In computing the amount that may be in­ of a member bank, bank holding company, or vested in any organization under this section there Edge Corporation engaged in banking, or 25 per shall be included any unpaid amount for which cent of the investor’s capital and surplus in the the investor is liable and any investments by affil­ case of an Edge Corporation not engaged in bank­ iates . ing; (5) An investor shall dispose of an investment (ii) any additional investment in an organization promptly (unless the Board authorizes retention) if: if: (A) the additional investment does not cause the (i) the organization invested in (A) engages in organization to be a direct or indirect subsidiary the business of underwriting, selling or distributing or joint venture of the investor; and securities in the United States; (B) engages in the (B) the additional amount invested does not in general business of buying or selling goods, wares, any calendar year exceed 10 per cent of the inves­ merchandise, or commodities in the United States; tor’s historical cost plus dividends for that year. or (C) transacts business in the United States that The amount that may be invested under this pro­ is not incidental to its international or foreign vision of the general consent may, if not exercised, business; (ii) in the case of a subsidiary, it engages in an activity other than that which the Board has 5. When necessary, the general consent and prior notifica­ tion provisions of this section constitute the Board’s approval under the eighth paragraph of section 25(a) of the FRA for 4. For this purpose, a direct subsidiary of a member bank investments in excess of the limitations therein based on capital is deemed to be an investor. and surplus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

558 Federal Reserve Bulletin □ July 1979 be carried forward and accumulated for up to five (12) performing management consulting serv­ consecutive years; or ices provided that such services when rendered (iii) any investment that is acquired from an with respect to the United States market shall be affiliate at net asset value. restricted to the initial entry; (13) underwriting, distributing, and dealing in (2) Prior notification. An investment in a sub­ debt and equity securities outside the United sidiary or joint venture that does not qualify under States, provided that no underwriting commitment the general consent procedure, may be made after by a subsidiary of an investor for shares of an the investor has given 60 days’ prior written notice issuer may exceed $2 million or represent 20 per to the Board if the total amount to be invested cent of the capital and surplus or voting stock of does not exceed 10 per cent of the investor’s an issuer unless the underwriter is covered by capital and surplus. The notification period shall binding commitments from subunderwriters or commence at the time the notice is accepted. The other purchasers; Board may, during the notification period, disap­ (14) engaging in other activities that the Board prove the investment, suspend the period, or re­ has determined by regulation or order are closely quire that an application be filed by the investor related to banking under section 4(c)(8) of the for the Board’s specific consent. BHCA. An investor that is of the opinion that other activi­ (3) Specific consent. Any investment that does ties are usual in connection with the transaction not qualify for either the general consent or the of the business of banking or other financial prior notification procedure shall not be consum­ operations abroad and are consistent with the FRA mated without the specific consent of the Board. or the BHCA may apply to the Board for such (d) Listed Activities. The Board has determined a determination. that the following activities are usual in connection (e) Debts Previously Contracted. Shares of with the transaction of banking or other financial stock or other evidences of ownership acquired to operations abroad: prevent a loss upon a debt previously contracted (1) commercial banking; in good faith shall not be subject to the limitations (2) financing, including commercial financing, or procedures of this section; however, the shares consumer financing, mortgage banking, and fac­ or evidences of ownership shall be disposed of toring; promptly, but in no event later than two years after (3) leasing real or personal property if the lease their acquisition unless the Board authorizes re­ serves as the functional equivalent of an extension tention for a longer period. of credit to the lessee of the property; (4) acting as fiduciary; (5) underwriting credit life insurance and credit Section 211.6— accident and health insurance related to extensions of credit by the investor or its affiliates; Lending Limits and Capital Requirements (6) performing services for other direct or indi­ (a) Acceptances of Edge Corporations. An rect operations of a United States banking organi­ Edge Corporation shall be and remain fully se­ zation, including representative functions, sale of cured for (i) all acceptances outstanding in excess long term debt, name saving, and holding assets of twice its capital and surplus; and (ii) all accept­ acquired to prevent loss on a debt previously ances outstanding for any one person in excess contracted in good faith; of 10 per cent of its capital and surplus. These (7) holding the premises of a branch of an Edge limitations shall not apply (i) if the excess repre­ Corporation or member bank or the premises of sents the international shipment of goods and the a direct or indirect subsidiary; Edge Corporation is fully covered by primary (8) providing investment, financial or economic obligations to reimburse it that are also guaranteed advisory services; by banks or bankers, or (ii) if the Edge Corporation (9) general insurance brokerage; is covered by participation agreements from other (10) data processing; banks. (11) managing a mutual fund if the fund’s shares are not sold or distributed in the United (b) Liabilities of One Person. (1) Except as the States or to United States residents and the fund Board may otherwise specify: does not exercise managerial control over the firms (i) the liabilities of any person to an Edge in which it invests; Corporation engaged in banking and to its direct Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 559 or indirect subsidiaries shall not exceed 10 per cent person shall at no time exceed 100 per cent of of the Edge Corporation’s capital and surplus; the capital and surplus of the lender or the parent (ii) the total liabilities of any person to a ma­ Edge Corporation. jority owned foreign bank or Edge Corporation subsidiary of a member bank, and to majority (c) Loans to Foreign Banks. A member bank owned subsidiaries of such foreign bank or Edge that holds directly or indirectly shares in a foreign Corporation when combined with liabilities of the bank may make loans to that foreign bank without same person to the member bank and its majority regard to section 23A of the FRA. owned subsidiaries, shall not exceed the member (d) Capitalization. An Edge Corporation shall bank’s limitation on loans to one person. at all times be capitalized in an amount .that is (2) “Liabilities” includes: ineligible accept­ adequate in relation to the scope and character of ances outstanding; obligations for money bor­ its activities. In the case of an Edge Corporation rowed; investments in another organization (val­ engaged in banking, its capital and surplus shall ued at original cost) except where that organization be not less than seven per cent of risk assets. For is a direct or indirect subsidiary; unsecured obli­ this purpose, risk assets shall be deemed to be gations resulting from the issuance of guarantees all assets on a consolidated basis other than cash, or similar agreements; underwriting commitments amounts due from banking institutions in the to an issuer of securities; in the case of a partner­ United States, United States Government securi­ ship or firm, obligations of its members, in the ties, and Federal funds sold. case of a corporation, obligations incurred for its benefit by other corporations that it controls; and in the case of a foreign government, the liabilities Section 211.7—Supervision and Reporting of its departments or agencies deriving their cur­ rent funds principally from general tax revenues. (a) Supervision. (1) Investors shall supervise (3) The limitations of this paragraph do not and administer their foreign branches and subsidi­ apply to: aries in such a manner as to ensure that their (i) deposits of banks and Federal funds pur­ operations conform to high standards of banking chased; and financial prudence. Effective systems of rec­ (ii) bills or drafts drawn in good faith against ords, controls, and reports shall be maintained to actual goods and on which two or more parties keep management informed of their activities and are liable; condition. Such systems should provide, in partic­ (iii) any acceptance that has not matured and ular, information on risk assets, liquidity manage­ is not held by the acceptor; ment, and operations of controls and conformance (iv) obligations to the extent secured by cash to management policies. Reports on risk assets collateral; or should be sufficient to permit an appraisal of credit (v) obligations to the extent supported by the quality and assessment of exposure to loss, and full faith and credit of the following: for this purpose provide full information on the (A) the United States or any of its departments, condition of material borrowers. Reports on the agencies, establishments, or wholly-owned cor­ operations of controls should include the internal porations (including obligations to the extent in­ and external audits of the branch or subsidiary. sured against foreign political and credit risks by (2) Investors shall maintain sufficient informa­ the Export-Import Bank of the United States or tion with respect to joint ventures to keep informed the Foreign Credit Insurance Association), the of their activities and condition. Such information International Bank for Reconstruction and Devel­ shall include audits and other reports on financial opment, the International Finance Corporation, the performance, risk exposure, management policies, International Development Association, the Inter- and operations of controls. Complete information American Development Bank, or the Asian De­ shall be maintained on all transactions with the velopment Bank; joint venture by the investor and its affiliates. (B) any organization if at least 25 per cent of (3) The reports and information specified in such an obligation or of the total credit is also paragraphs (1) and (2) shall be made available to supported by the full faith and credit of, or partic­ examiners of the appropriate bank supervisory ipated in by any institution designated in paragraph agencies. (b)(3)(v)(A) of this section in such manner that default to the lender will necessarily include de­ (b) Examinations. Examiners appointed by the fault to that entity. The total liabilities of such Board shall examine each Edge Corporation once Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

560 Federal Reserve Bulletin □ July 1979 a year. An Edge Corporation shall make available ing Delegation of Authority to add several pre­ to examiners sufficient information to assess its viously unpublished delegations to the published condition and operations and the condition and rules. activities of any organization whose shares it Effective March 21, 1979, section 265.2(f) is holds. amended by adding paragraphs (51)-(56) to read as follows: (c) Reports. (1) Each Edge Corporation shall make at least two reports of condition annually Section 265.2—Specific Functions Delegated to to the Board at such times and in such form as Board Employees and to Federal Reserve Banks the Board may prescribe. The Board may require * * * * * that statements of condition or other reports be published or made available for public inspection. (f) Each Federal Reserve Bank is authorized: (2) Edge Corporations, member banks, and bank holding companies shall file such reports on * * * * * their foreign operations as the Board may require. (51) To extend the time within which a bank (3) A member bank, Edge Corporation or a holding company may acquire shares, a new bank bank holding company shall report within 30 days to be acquired by a bank holding company may any acquisition or disposition of shares in a manner be opened for business, or a merger may be prescribed by the Board. consummated in connection with an application approved by the Board, if no material change that (d) Filing Procedures. Unless otherwise is relevant to the proposal has occurred since its directed by the Board, applications, notifications, approval. and reports required by this Part shall be filed with (52) To extend the time within which a bank the Federal Reserve Bank of the district in which holding company must file its annual report. the parent bank or bank holding company is lo­ (53) To extend the time within which cated, or if none, the Federal Reserve Bank of (i) a State member bank may establish a do­ the district in which the applying or reporting mestic branch, institution is located. Instructions and forms for (ii) a member bank may establish a foreign such applications, notifications, and reports are branch, or available from the Federal'Reserve Bank. (iii) an “Edge Act” or “Agreement” corpora­ (e) Transition. (1) Transactions that have been tion may establish a branch or agency, if no consummated or activities engaged in pursuant to material change has occurred in the bank’s (or the Board’s general or specific consent prior to corporation’s) general condition since the applica­ June 8, 1979, may be retained or continued. Con­ tion was approved. ditions imposed or undertakings in connection with (54) To extend the time within which an “Edge such investments that are inconsistent with this Act” or “Agreement” corporation or a member Part shall be superseded by this Part. bank may accomplish a purchase of stock that has (2) Extensions of credit in excess of the limita­ been authorized by the Board pursuant to section tions of section 211.6(b) that were outstanding on 25 or 25(a) of the Federal Reserve Act, if no June 8, 1979, may remain outstanding until the material change has occurred in the general condi­ date of maturity. tion of the corporation or the member bank since (3) Edge Corporations whose accounts or in­ such authorization. vestments do not conform to sections 211.6(d) or (55) To extend the time within which Federal 211.5(b) of this Part on June 14, 1979, shall Reserve membership must be accomplished, if no conform such accounts and investments by June material change has occurred in the bank’s general 14, 1981. condition since the application was approved. (56) To waive the penalty for deficient reserves by a member bank if, after a review of all the circumstances relating to such deficiency, the Re­ serve Bank concludes that waiver of the penalty Amendments to R ules Regarding is warranted, except that in no case shall a penalty Delegation of A uthority for deficient reserves be waived if the deficiency The Board of Governors, acting through its arises out of the bank’s gross negligence or con­ Secretary pursuant to delegated authority, has ap­ duct inconsistent with the principles and purposes proved amendments to the Board’s Rules Regard­ of reserve requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 561 Bank Holding Company ownership interests, and Applicant neither engages and Bank Merger Orders in any activity directly nor holds shares of any Issued by the Board of Governors other bank. In analyzing the competitive effects of this proposal, it is necessary to consider that Applicant’s principal controls, directly or indi­ Orders Under Section 3 rectly, over 50 percent of the voting shares of First of Bank Holding Company Act Missouri Bank of Gasconade County, Hermann, Community Bancorp, Missouri (“Hermann Bank”),3 located 16 miles Creve Coeur, Missouri from Bank and in the same relevant banking mar­ ket. Hermann Bank ($18.1 million in deposits) is Order Approving the largest bank in the market and holds 43.6 Formation of Bank Holding Company percent of the market’s commercial bank deposits. Upon application of the competitive standards Community Bancorp, Creve Coeur, Missouri, in section 3(c) of the Bank Holding Company Act has applied for the Board’s approval under section to the facts of record, the Board concludes that 3(a)(1) of the Bank Holding Company Act (12 some existing competition between Bank and U.S.C. § 1842(a)(1)) of formation of a bank Hermann Bank was eliminated when they came holding company by acquiring 80.1 percent of the under the common control of Applicant’s principal voting shares of Community Bank of Morrison, in 1974. However, the anticompetitive effects of Morrison, Missouri (“Bank”). common control of both banks was mitigated by Notice of the application, affording opportunity the fact that at the time Bank was the fifth largest for interested persons to submit comments and bank in the market ($1.6 million in deposits)4 and views, has been given in accordance with section was not a meaningful competitor. For example, 3(b) of the Act. The time for filing comments and prior to Applicant’s principal’s purchase of Bank views has expired, and the Board has considered in 1974, Bank’s loan-to-deposit ratio was only 22 the application and all comments received in light percent and it- did not offer passbook savings of the factors set forth in section 3(c) of the Act accounts. Thus, the Board is of the view that the (12 U.S.C. § 1842(c)). acquisition of control of Bank by Applicant’s Applicant, a nonoperating company, was or­ principal in 1974 had no more than a slightly ganized for the purpose of becoming a bank hold­ adverse competitive effect. With respect to the ing company through the acquisition of Bank. present proposal, while consummation would ad­ Bank ($3.4 million in deposits) is one of the versely affect competition, in view of all the facts smaller banks in Missouri, holding less than 0.1 of record including the distances separating Bank percent of the total deposits in commercial banks from Hermann Bank, the relative size of Bank and in the state.1 its relative market share, the fact that four unaffi­ Bank is the fourth largest of six banks in the liated banking alternatives would remain in the relevant banking market and holds 8.1 percent of relevant banking market, it is the Board’s opinion the total commercial bank deposits in the market.2 that consummation of this proposal would have This proposal involves a reorganization of existing only slightly adverse competitive effects. More­ over, the slightly adverse competitive effects that 1. Unless otherwise indicated, all banking data are as of resulted from the change in control of Bank in June 30, 1978, and reflect bank holding company formations 1974 and that are associated with the present and acquisitions approved as of March 31, 1979. 2. The relevant banking market is approximated by the proposal are outweighed by convenience and needs northern half of Gasconade County, the northeastern quadrant considerations discussed below. Thus, the Board of Osage County, that portion of Montgomery County south concludes that the overall competitive effects of of Interstate 70, and the northwestern corner of Franklin County. Applicant has claimed that the relevant market is the proposal are at most slightly adverse. bounded on the east by the Gasconade River, on the north by the Missouri River, on the west by the Osage River, and on the south by Highway 50, thus excluding Hermann, Mis­ souri, from the relevant market. The Federal Reserve Bank 3. Applicant’s principal controls, directly or indirectly, ap­ of St. Louis conducted a field investigation to determine the proximately 72 percent of the voting shares of First Missouri banking market. As a result of that investigation and an analysis Banks, Inc., Creve Coeur, Missouri, a registered bank holding of all of the facts of record, including loan and deposit data, company that owns 100 percent of Hermann Bank’s voting commuting data, consumer trade information, communications stock. In addition to Applicant’s principal’s interest in Bank, patterns, and other economic data, the Board has concluded Hermann Bank’s president serves as a director of Bank, and that the appropriate market for analyzing the competitive ef­ an assistant vice president of Hermann Bank serves as Bank’s fects of the subject proposal is approximated by the geographic president and director. area described above. 4. Data are as of December 31, 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

562 Federal Reserve Bulletin □ July 1979 Since Applicant’s principal acquired control of By order of the Board of Governors, effective Bank in 1974, Bank’s loan-to-deposit ratio has June 18, 1979. increased to 60 percent; its total deposits have more than doubled; and Bank has increased con­ Voting for this action: Chairman Miller and Gover­ nors Wallich and Partee. Voting against this action: siderably the scope of its services to its customers Governors Coldwell and Teeters. by offering passbook savings accounts, a full range of certificates of deposit, service charge-free (Signed) Theodore E. Allison, checking, and consumer and installment loans. [seal] Secretary of the Board. Bank has also improved its banking facility and made a five-fold increase in the maximum limit Dissenting Statement of of loans that it offers. It is clear to the Board that Governors Coldwell and Teeters Bank has become a meaningful banking alternative in the relevant banking market. Accordingly, it We would not approve the application of Com­ is the Board’s opinion that considerations relating munity Bancorp to acquire the Community Bank to the convenience and needs of the community of Morrison (“Bank”) because we believe that the to be served lend such weight toward approval as acquisition would perpetuate a substantially ad­ to outweigh the slightly adverse competitive ef­ verse competitive situation within the relevant fects associated with the purchase of control of banking market that is not outweighed by conven­ Bank in 1974 by Applicant’s principal and with ience and needs considerations associated with the the subject proposal. Accordingly, it is the Board’s proposal. judgment that the proposed transaction would be Our dissent is prompted by what we perceive consistent with the public interest and that the to be the use of the holding company form to application should be approved. perpetuate an existing substantially adverse com­ The financial and managerial resources and fu­ petitive arrangement. In this case, a principal of ture prospects of Applicant are dependent upon First Missouri Banks acquired, as an individual, those of Bank. It appears that Applicant would control of a bank which is located in the same be able to service the debt to be incurred in market as one of First Missouri’s subsidiary banks, connection with this proposal without an adverse Hermann Bank. The acquisition eliminated com­ effect upon the financial condition of Bank. Based petition between the two banks and resulted in upon the facts of record, the financial and mana­ common control of 54.8 percent of the deposits gerial resources of Applicant and Bank as well in commercial banks in the relevant market (as as those of the other banks and bank holding of December 31, 1974). Acquisition of a bank by companies with which Applicant’s principal is an individual was not then subject to Board ap­ associated are regarded as satisfactory and the proval.1 Applicant’s principal, desiring to consoli­ future prospects of each appear favorable.5 Ac­ date control of Bank and receive the benefits cordingly, considerations relating to banking fac­ associated with bank holding company status, now tors are consistent with approval of the application. seeks the Board’s approval. It appears to us that On the basis of the record, the application is approval in these circumstances sanctions a bank approved for the reasons summarized above. The holding company’s attempt to acquire a competing transaction shall not be made before the thirtieth bank under circumstances that would not normally calendar day following the effective date of this receive Board approval, simply by having the Order or later than three months after the effective acquisition made in the first instance by the bank date of this Order, unless such period is extended holding company’s principal as an individual. To for good cause by the Board, or by the Federal tolerate such maneuverings serves to undermine Reserve Bank of St. Louis pursuant to delegated the basic policy of the Bank Holding Company authority. 1. The Change in Bank Control Act (Title VI of the Finan­ cial Institutions Regulatory and Interest Rate Control Act of 5. With respect to financial and managerial resources, the 1978) requires any person, including an individual, seeking Board has stated that in considering an application involving to acquire control of an insured bank to give the appropriate a bank whose principals are associated with other banks or federal banking agency 60 days advance notice. The appro­ bank holding companies, the Board looks beyond the bank priate federal banking agency may disapprove any proposed that is the subject of the application and analyzes the financial acquisition if it does not meet certain criteria. Among these and managerial resources of the other banks or bank holding requirements are competitive standards similar to those pro­ companies. See Board’s Order dated June 14, 1976, denying vided in section 3(c) of the Bank Holding Company Act. the application of Nebraska Banco, Inc., Ord, Nebraska, to Therefore, in the future, evasion of the Bank Holding Company become a bank holding company. Nebraska Banco, Inc., (62 Act by having an individual first acquire a bank will no longer Federal Reserve Bulletin 638 (1976)). be possible. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 563 Act and the competitive standards provided in of the voting shares of First National Bank and section 3(c) of the Act. Trust Company in Great Bend, Great Bend, While we recognize that denial of this proposal Kansas (“Bank”). might not immediately alter the anticompetitive Notice of the application, affording opportunity relationship existing between these two banking for interested persons to submit comments and organizations, a denial would nevertheless views, has been given in accordance with section strengthen the prospect that Bank and Hermann 3(b) of the Act. The time for filing comments and Bank would become independent and competing views has expired, and the Board has considered organizations in the future. On the other hand, the application and all comments received in light approval would strengthen the common ownership of the factors set forth in section 3(c) of the Act of the two banks and would lessen the likelihood (12 U.S.C. § 1842(c)). of disaffiliation. Applicant, a nonoperating company with no We also dissent because we believe that the subsidiaries, was organized for the purpose of convenience and needs benefits enumerated in the becoming a bank holding company through the Board’s Order are not sufficient to outweigh the acquisition of Bank ($50.3 million in deposits).1 anticompetitive effects of the proposal. While the Bank is the 32nd largest bank in the State of services instituted at Bank since 1974 might not Kansas and holds 0.45 percent of the total deposits have been initiated absent Bank’s acquisition by in commercial banks in the state. Applicant’s principal, these services are never­ Bank is the largest of ten banks in the relevant theless of a basic character that can be found at banking market2 and holds 24.3 percent of the any well-run bank. In our opinion, the benefits market’s commercial bank deposits. This proposal resulting from the introduction of such services involves a reorganization of existing ownership cannot clearly outweigh the substantially adverse interests, and Applicant neither engages in any competitive effects resulting from common control activity directly nor holds shares of any other of over 50 percent of the market’s total commercial bank. Furthermore, none of Applicant’s prin­ bank deposits. cipals, officers or directors holds any interest in, We also believe that the Board’s reliance upon or serves in a similar capacity with, any other bank Bank’s existing services relative to the conven­ located in the relevant market.3 Accordingly, it ience and needs of its community is misplaced. appears that consummation of the proposal would Applicant has not stated that any new public ben­ not have an adverse effect upon either competition efits will be instituted as a result of Board ap­ or the concentration of resources in any relevant proval, but instead relies upon the services and area. Thus, the Board concludes that the effects changes instituted at Bank since Applicant’s of the proposal on competition are consistent with principal purchased Bank. We believe that in order approval of the application to acquire Bank. to outweigh the substantially adverse competitive The Board regards as generally satisfactory the effects of the present proposal, some additional financial and managerial resources and future benefits should result from Board approval. prospects of Applicant and Bank as well as those For the above-stated reasons, we cannot support of the other banks and bank holding company with the majority’s decision and would deny the subject which Applicant’s principals are associated. Al­ application. though Applicant will incur debt in connection with this proposal, the debt is considerably less June 18, 1979. than that proposed in an earlier application,4 and it appears that Applicant will have sufficient fi­ nancial flexibility to service that debt while main­ First National Bank Shares, Ltd., Great Bend, Kansas Order Approving 1. Banking data are as of June 30, 1978. Formation of Bank Holding Company 2. The relevant banking market is approximated by Barton County and the eastern portion of Rush County. 3. Applicant’s principals are associated with another one- First National Bank Shares, Ltd., Great Bend, bank holding company and with four other banks in Kansas. Kansas, has applied for the Board’s approval under Each of these banks and the bank holding company compete section 3(a)(1) of the Bank Holding Company Act in a separate market from Bank. 4. The Board denied Applicant’s earlier application, by (12 U.S.C. § 1842(a)(1)) of formation of a bank Order dated March 8, 1978. First National Bancshares, Ltd., holding company by acquiring 80 percent or more (64 Federal Reserve Bulletin 311 (1978)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

564 Federal Reserve Bulletin □ July 1979 taining adequate capital in its subsidiary bank. Applicant is a nonoperating corporation with no Therefore, considerations relating to banking fac­ subsidiaries formed for the purpose of becoming tors are consistent with approval of the application. a bank holding company through the acquisition No significant changes in Bank’s operation or of Bank. Bank holds approximately $49.2 million in the services offered to its customers are antici­ in deposits, representing 0.2 percent of deposits pated to follow from consummation of the pro­ in commercial banks in Missouri.1 Upon consum­ posed acquisition. Thus, considerations relating to mation of the proposal, Applicant would become the convenience and needs of the community to the 52nd largest commercial banking organization be served lend no weight toward, but are consistent in the state. with, approval. It is the Board’s judgment that Bank is the largest of five banking organizations consummation of the transaction would be in the located in the relevant banking market and controls public interest and that the application should be approximately 48.7 percent of the market’s com­ approved. mercial bank deposits.2 The proposal represents On the basis of the record, the application is a reorganization of existing ownership interests, approved for the reasons summarized above. The and Applicant neither engages in any activity di­ transaction shall not be made before the thirtieth rectly nor holds shares of any other bank or non­ calendar day following the effective date of this bank organization. Applicant’s principals are not Order, or later than three months after the effective associated with any other banking organizations. date of this Order unless such period is extended Thus, it appears that consummation of the proposal for good cause by the Board, or by the Federal would not result in an increase in the concentration Reserve Bank of Kansas City pursuant to delegated of banking resources or have any adverse effects authority. upon competition in any relevant market, and the By order of the Board of Governors, effective Board concludes that the effects of the proposal June 27, 1979. on competition are consistent with approval of the application. This action was taken pursuant to section 265.1a(c) The financial and managerial resources and fu­ of the Board’s Rules Regarding Delegation of Authority ture prospects of Applicant, which are dependent (to be codified in 12 C.F.R. § 265. la(c)) by a committee of Board members. Voting for this action: Chairman upon those of Bank, are generally satisfactory. Miller and Governors Coldwell and Partee. While Applicant will incur debt in connection with the proposed acquisition, it appears that dividends (Signed) Griffith L. Garwood, paid by Bank will provide Applicant with suffi­ [seal] Deputy Secretary of the Board. cient financial flexibility to meet its annual debtservicing requirements without adversely affecting the capital position in Bank.3 Thus, considerations relating to banking factors are consistent with Moberly City Bancshares, Inc., approval of the application. Moberly, Missouri Upon consummation of the proposal, Applicant Order Approving proposes to extend Bank’s hours of operation. Formation of Bank Holding Company While no other changes in Bank’s services are expected to result immediately from the proposal, Moberly City Bancshares, Inc., Moberly, Mis­ the Board notes that Bank has established a sig­ souri, has applied for the Board’s approval under nificant positive record of community service and section 3(a)(1) of the Bank Holding Company Act has devoted particular attention and resources to (12 U.S.C. § 1842(a)(1)) of formation of a bank the credit needs of low- and moderate-income holding company by acquiring 93 percent or more segments of its community. The Board expects of the voting shares of City Bank and Trust Com­ that this service to the community will continue pany of Moberly, Moberly, Missouri (“Bank”). and concludes that considerations relating to the Notice of the application, affording opportunity convenience and needs of the community to be for interested persons to submit comments and views, has been given in accordance with section 3(b) of the Act. The time for filing comments and 1. All deposit data are as of June 30, 1978. 2. The relevant banking market is approximated by Ran­ views has expired, and the Board has considered dolph County, Missouri. the application and all comments received in light 3. In this connection, the Board notes that principals of Applicant have committed to the Board that they will maintain of the factors set forth in section 3(c) of the Act an adequate capital position in Bank during the debt amortiza­ (12 U.S.C. § 1842(c)). tion period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 565 served lend weight toward approval of the appli­ for the sale of credit life, accident, and health cation. Based on the foregoing and other consid­ insurance directly related to extensions of credit. erations reflected in the record, it is the Board’s Such activities have been determined by the Board judgment that the proposed acquisition is in the to be closely related to banking (12 C.F.R. public interest and that the application should be §§ 225.4(a)(1), (2), and (9)). approved. Notice of the application, affording opportunity On the basis of the record, the application is for interested persons to submit comments on the approved for the reasons summarized above. The public interest factors, has been published (44 transaction shall not be consummated before the Federal Register 18,286 (1979)). The time for thirtieth calendar day following the effective date filing comments has expired, and the Board has of this Order, or later than three months after the considered the application and all comments re­ effective date of this Order unless such period is ceived in light of the public interest factors set extended for good cause by the Board or by the forth in section 4(c)(8) of the Act. Federal Reserve Bank of St. Louis pursuant to Applicant is the third largest banking organi­ delegated authority. zation in New York and the fourth largest in the By order of the Board of Governors, effective nation. Its four domestic banking subsidiaries, June 26, 1979. including Applicant’s lead bank, Manufacturers Hanover Trust Company, New York, New York, This action was taken pursuant to section 265.1a(c) hold aggregate domestic and foreign deposits of of the Board’s Rules Regarding Delegation of Authority approximately $32.7 billion.1 In addition to Ritter, (to be codified in 12 C.F.R. § 265. la(c)) by a committee of Board members. Voting for this action: Governors Applicant controls several other nonbanking sub­ Coldwell, Teeters, and Rice. sidiaries; these companies engage in leasing and mortgage banking activities. (Signed) Griffith L. Garwood, Ritter is a consumer finance company with total [seal] Deputy Secretary of the Board. assets of approximately $158 million. Ritter operates 148 offices, variously located in Indiana, Kentucky, Connecticut, New Jersey, Maryland, West Virginia, Virginia, Georgia, Pennsylvania, Orders Under Section 4 and North Carolina. Although it primarily engages of Bank Holding Company Act in the activity of making direct loans to consumers, Manufacturers Hanover Corporation, at some of its offices Ritter also engages in the New York, New York activities of making mortgage loans, servicing loans or other extensions of credit, sales financing, Order Approving and acting as agent or broker in the sale of credit Acquisition of Merchants Industrial Bank and life and credit accident and health insurance. In Merchants Acceptance Company addition, Ritter, through Ritter Life Insurance Company, engages in the activity of acting as Manufacturers Hanover Corporation, New reinsurer of credit life and credit accident and York, New York, a bank holding company within health insurance sold at offices of Ritter in New the meaning of the Bank Holding Company Act Jersey, Pennsylvania, Virginia, West Virginia, (“Act”), has applied for the Board’s approval and North Carolina. under section 4(c)(8) of the Act (12 U.S.C. MIB, with assets of approximately $5.8 million § 1843(c)(8)) and section 225.4(b)(2) of the (as of December 7, 1977), is the ninth largest Board’s Regulation Y (12 C.F.R. § 225.4(b)(2)), industrial bank in Colorado. MAC is a small to acquire 100 percent of the shares of Merchants finance company with total assets of $0.6 million. Industrial Bank (“MIB”) and Merchants Accept­ MIB and MAC operate out of the same office in ance Company (“MAC”), both of Denver, Colo­ Denver, Colorado.2 While several of Applicant’s rado. Applicant proposes to acquire MIB and subsidiaries operate in the Denver area, none of MAC through its wholly owned subsidiary, Ritter Financial Corporation, Wyncote, Pennsylvania (“Ritter”), and thereafter engage in the activities 1. Unless otherwise indicated, all data are as of December of making and acquiring for its own account or 31, 1978, and reflect bank holding company formations and for the account of others, loans or other extensions acquisitions approved as of April 30, 1979. of credit as would be made by a finance company 2. The relevant geographic market for purposes of analyzing the competitive effect of the subject proposal is approximated or an industrial bank, and acting as agent or broker by the greater Denver area. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

566 Federal Reserve Bulletin □ July 1979 the subsidiaries is engaged in consumer lending The transaction shall be made not later than and the offering of savings deposits and thrift three months after the effective date of this Order, certificates.3 Although Applicant appears to unless such period is extended for good cause by possess the financial and managerial capabilities the Board or by the Federal Reserve Bank of New to engage in these activities de novo, this appears York, pursuant to authority hereby delegated. unlikely within the foreseeable future due, in part, By order of the Board of Governors, effective to the difficulty associated with obtaining a Colo­ June 12, 1979. rado industrial bank charter and the distance separating Denver from Applicant’s finance com­ Voting for this action: Chairman Miller and Gover­ nors Wallich, Partee, and Teeters. Absent and not pany operations. Because of the size of MIB and voting: Governor Coldwell. MAC, the Board does not view the subject pro­ posal as having any significant adverse competitive (Signed) Griffith L. Garwood, effects. [seal] Deputy Secretary of the Board. In recent years MIB and MAC have not experi­ enced any significant growth in size or services offered; however, it is expected that upon affilia­ Northwestern Financial Corporation, tion with Applicant, the volume and type of loans North Wilkesboro, North Carolina that would be made by MIB and MAC would be expanded, with particular emphasis upon small Order Approving consumer loans. Since MIB makes few such loans, Retention of First Atlantic Corporation expansion of this activity will result in increased Northwestern Financial Corporation, North competition in the Denver market. Wilkesboro, North Carolina, a bank holding com­ Based on all of the facts of record, the Board pany within the meaning of the Bank Holding concludes that consummation of the subject pro­ Company Act, has applied for the Board’s ap­ posal would result in benefits to the public that proval, under § 4(c)(8) of the Act (12 U.S.C. outweigh any adverse effects on competition that § 1843(c)(8)) and § 225.4(b)(2) of the Board’s may result from consummation of the proposal. Regulation Y (12 CFR § 225.4(b)(2)), to retain Moreover, there is no evidence in the record to First Atlantic Corporation (“Company”), Char­ indicate that the proposed transaction would lead lotte, North Carolina, a company that engages in to any undue concentration of resources, conflicts the activities of mortgage banking including origi­ of interests, unsound banking practices, or any nating, selling and servicing for its own account other adverse effects upon the public interest. and the account of others conventional and Based upon the foregoing and other consid­ guaranteed residential, commercial construction, erations reflected in the record, the Board has and land development loans. Company also acts determined that the balance of the public interest as agent for the sale of credit life insurance, credit factors the Board is required to consider under accident and health insurance and property and section 4(c)(8) is favorable. Accordingly, the ap­ casualty insurance directly related to its extensions plication is hereby approved. This determination of credit. Such activities have been determined by is subject to the conditions set forth in section the Board to be closely related to banking (12 CFR 225.4(c) of Regulation Y and to the Board’s au­ § 225.4(a)(1), (3) and (9)).1 thority to require such modification or termination Notice of the application, affording opportunity of the activities of a holding company or any of for interested persons to submit comments and its subsidiaries as the Board finds necessary to views on the public interest factors, has been duly assure compliance with the provisions and pur­ published (44 Federal Register 4155) (1979). The poses of the Act and the Board’s regulations and time for filing comments and views has expired, orders issued thereunder, or to prevent evasion and the Board has considered the application and thereof. 1. Applicant also proposes to retain indirect ownership of two wholly owned subsidiaries of Company that are engaged 3. As an industrial bank, MIB issues “investment certifi­ solely in disposing of property acquired by Company in satis­ cates” to the public. Such certificates are protected by the faction of debts previously contracted. Company could perform Industrial Bank Savings Guaranty Corporation of Colorado. such activities directly as an incident to its lending activities. Colorado industrial banks are examined twice a year by the As a general matter, the Board will permit, without any specific State Bank Commissioner and must file semi-annual financial regulatory approval, the formation of a wholly owned subsidi­ reports. In addition, minimum capital and reserve requirements ary of an approved section 4(c)(8) company to engage in are fixed by state law for such institutions. activities that such a company could itself engage in directly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 567 all comments received in the light of the public Company engages principally in the origination, interest factors set forth in § 4(c)(8) of the Act resale, and servicing of FHA and VA guaranteed (12 U.S.C. § 1843(c)(8)). 1-4 family residential mortgage loans, and derives Applicant, a one-bank holding company, be­ 90 percent of its mortgage guarantors from North came a holding company as a result of the 1970 Carolina. In 1977, Company originated an aggre­ Amendments to the Act by virtue of its control gate of $22.8 million 1-4 family residential loans of The Northwestern Bank (“Bank”), North in North Carolina. Bank also engages in origi­ Wilkesboro, North Carolina. Company (formerly nating 1-4 family residential mortgages in two of Goodyear Mortgage Corporation) was acquired by the markets where Company is represented, and Bank in 1966 and transferred to Applicant in 1969. in 1977, Company and Bank originated an aggre­ Pursuant to the provisions of section 4 of the Act, gate of $58.8 million 1-4 family residential mort­ Applicant has until December 31, 1980, to divest gages in North Carolina. Applicant cannot be its interest in Company or, in the alternative, to regarded as dominant in the mortgage lending apply to secure the Board’s approval to retain such market in any relevant area. The Board concludes, interest.2 based on all the facts of record, that Applicant’s Applicant is the fourth largest banking organi­ acquisition of Company did not have any adverse zation in North Carolina by virtue of its control effects on competition in any relevant area. Fur­ of Bank, which holds deposits of $1.2 billion, thermore, there is no evidence in the record indi­ representing approximately 8.4 percent of total cating that retention would result in undue con­ deposits in commercial banks in the state.3 In centration of resources, unfair competition, con­ addition to engaging in mortgage banking and flicts of interests, unsound banking practices or related insurance activities through Company, other adverse effects. Applicant engages in a variety of nonbanking It appears that Applicant’s acquisition of Com­ activities, including factoring and commercial fi­ pany has produced benefits to the public such as nancing, acting as an investment advisor to a real expanded mortgage financing alternatives and estate investment trust, full payout leasing and greater efficiency in processing loans. These bene­ acting as agent for the sale of insurance in a fits to the public are consistent with approval of community of less than 5,000 people. the subject application, and it is the Board’s view The Board regards the standards under section that approval of Applicant’s retention of Company 4(c)(8) for retention of shares of a nonbanking can reasonably be expected to continue to produce company to be the same as the standards for a benefits to the public that would outweigh possible proposed acquisition of a 4(c)(8) company. On adverse effects. July 31, 1966, just prior to its acquisition by Bank, Based upon the foregoing and other consid­ Company had a real estate mortgage servicing erations reflected in the record, the Board has portfolio of $123.0 million. At that time Company determined that the balance of the public interest operated four offices in North Carolina and one factors the Board is required to consider under office in South Carolina. While at the time of § 4(c)(8) is favorable. Accordingly, the applica­ acquisition Bank also conducted mortgage busi­ tion is hereby approved. This determination is ness in two of the local markets where Company subject to the conditions set forth in § 225.4(c) had offices, from the information available, it does of Regulation Y and to the Board’s authority to not appear that the effects of the acquisition on require such modification or termination of the competition were significant. activity of a holding company or any of its sub­ Company now conducts its mortgage business sidiaries as the Board finds necessary to assure from four offices in North Carolina and one office compliance with the provisions and purposes of in South Carolina. As of September 30, 1978, the Act and the Board regulations and orders Company, with a real estate mortgage servicing issued thereunder, or to prevent evasion thereof. portfolio of $253 million, ranked fifth among all By order of the Board of Governors, effective mortgage companies in North Carolina and is the June 20, 1979. 164th largest mortgage banker in the country. Voting for this action: Governors Cold well, Partee, Teeters, and Rice. Absent and not voting: Chairman 2. Section 4 of the Act provides, inter alia, that nonbanking Miller and Governor Wallich. activities acquired between June 30, 1968, and December 31, 1970, by a company that became a bank holding company as a result of the 1970 Amendments may not be retained beyond December 31, 1980, without Board approval. (Signed) Griffith L. Garwood, 3. All banking data are as of June 30, 1978. [seal] Deputy Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

568 Federal Reserve Bulletin □ July 1979 Republic Bancorporation, Inc., tomers.4 Since this proposal involves a de novo Tulsa, Oklahoma office of Company, no existing competition would be eliminated, and on the basis of the record, the Order Approving Board concludes that competitive factors are con­ Industrial Banking Activities sistent with approval of the application. The Board also finds that consummation of the Republic Bancorporation, Inc., Tulsa, Okla­ proposal is likely to result in public benefits. Due homa, a bank holding company within the mean­ to its location, this new office would better serve ing of the Bank Holding Company Act, has ap­ the needs of the community. In addition, this plied for the Board’s approval, under section office of Company will offer safety deposit boxes 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and to its customers, a service not available at Com­ section 225.4(b)(2) of the Board’s Regulation Y pany’s present Tulsa office. There is no evidence (12 C.F.R. § 225.4(b)(2)), to establish a de novo in the record indicating that consummation of this office of its wholly owned subsidiary, Republic proposal would result in undue concentration of Trust and Savings Company, Tulsa, Oklahoma resources, unfair competition, conflicts of inter­ (“Company”). Company would operate as an ests, unsound banking practices, or other adverse industrial bank pursuant to the laws of Oklahoma. effects, particularly in light of certain undertakings The Board has determined this activity to be by Applicant. closely related to banking (12 C.F.R. § 225.4 Based upon the foregoing and other consid­ (a)(2)). erations reflected in the record, the Board has Notice of the application, affording opportunity determined that the balance of the public interest for interested persons to submit comments and factors the Board is required to consider under views on the public interest factors, has been duly section 4(c)(8) is favorable. Accordingly, the ap­ published (44 Federal Register 23942). The time plication is approved. This determination is subject for filing comments and views has expired and the to the conditions set forth in section 225.4(c) of Board has considered the application and all com­ Regulation Y and to the Board’s authority to ments received in the light of the public interest require such modification or termination of the factors set forth in section 4(c)(8) of the Act (12 activities of a holding company or any of its U.S.C. § 1843(c)(8)). subsidiaries as the Board finds necessary to assure Applicant, a one bank holding company, con­ compliance with the provisions and purposes of trols Republic Bank and Trust Company, Tulsa, the Act and the Board’s regulations and orders Oklahoma (“Bank”). Bank (total deposits of issued thereunder, or to prevent evasion thereof. $75.3 million), is the 20th largest of 476 banks The transaction shall be made not later than three in Oklahoma and controls 0.56 percent of the total months after the effective date of this Order, unless deposits in commercial banks in the state.1 Bank such period is extended for good cause by the is the seventh largest of 46 banking organizations Board or by the Federal Reserve Bank of Kansas in the relevant market,2 controlling 2.44 percent City acting pursuant to authority hereby delegated. of total market deposits. By order of the Board of Governors, effective Through Company’s proposed de novo office, June 22, 1979. Applicant would engage in industrial banking ac­ tivities,3 including the offering of thrift certificates and passbook savings accounts. In addition, Com­ pany would offer safety deposit boxes to its cus­ This action was taken pursuant to Section 265.1 a(c) of the Board’s Rules Regarding Delegation of Authority (to be codified in 12 C.F.R. § 265. la(c)) by a committee of Board members. Voting for this action: Governors Coldwell, Teeters, and Rice. Absent and not voting: 1. Banking data are as of June 30, 1978. 2. The relevant market is the Tulsa RMA which is approxi­ Chairman Miller and Governors Wallich and Partee. mated by Tulsa County and portions of Creek, Osage, Rogers, and Wagoner Counties, all in Oklahoma. 3. Under Oklahoma law, industrial banks are subject to (Signed) Griffith L. Garwood, examination by the State Bank Commissioner once a year and [seal] Deputy Secretary of the Board. must file annual financial reports. In addition, state law fixes minimum capital and reserve requirements. 4. Company presently engages in such activities (with the of Company would continue to perform limited services for exception of offering safety deposit boxes) at an office in Tulsa existing customers but will refer all new business to the and another office in Oklahoma City. The present Tulsa office proposed new office. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 569 Orders Approved Under have any significantly adverse effects upon the Bank Merger A ct concentration of banking resources in Ohio. Bank is the largest of eleven banking organi­ Society Corporation, zations in the relevant banking market,3 and con­ Cleveland, Ohio trolled 31.9 percent of the total market deposits on June 30, 1977. While none of Applicant’s Order Approving subsidiary banks compete in the relevant banking Merger of Bank Holding Companies market, two of Applicant’s banking subsidiaries Society Corporation, Cleveland, Ohio, a bank have home offices located in banking markets holding company within the meaning of the Bank contiguous to the relevant banking market. From Holding Company Act, has applied for the Board’s the record, it appears that no significant competi­ approval under section 3(a)(5) of the Act (12 tion presently exists between Applicant’s banking U.S.C. § 1842(a)(5)) of the merger of Harter subsidiaries and Bank, and that it is unlikely that BanCorp, Canton, Ohio (“BanCorp”), into Soci­ such competition would develop in the future. ety Corporation, and the acquisition of 100 percent The Board notes that consummation of the pro­ of the outstanding shares of The Harter Bank & posal would eliminate some potential competition Trust Company, Canton, Ohio (“Bank”), Ban- between Applicant and Bank, inasmuch as Appli­ Corp’s subsidiary bank. cant could enter the relevant market de novo either Notice of the application, affording opportunity by branching4 or by establishing a new bank. for interested persons to submit comments and Furthermore, Bank could branch into the two views, has been given in accordance with section counties where subsidiary banks of Applicant cur­ 3(b) of the Act (12 U.S.C. § 1842(b)). The time rently operate. In this regard, the Board notes that for filing comments and views has expired, and only two bank holding companies presently the Board has considered the application and all operate in the relevant banking market and that comments received, including those of the United there are numerous other bank holding companies States Department of Justice, in light of the factors that are potential entrants into the relevant banking set forth in section 3(c) of the Act (12 U.S.C. market. Accordingly, in view of all the facts of § 1842(c)).1 record, the Board concludes that the proposed Applicant, the fourth largest banking organi­ acquisition of Bank by Applicant would have only zation in the State of Ohio, controls twelve banks slightly adverse effects on potential competition.5 with total deposits of approximately $1.8 billion, Moreover, the Board does not regard the overall representing approximately 4.9 percent of the total effects of the proposal on competition as being deposits in commercial banks in Ohio.2 BanCorp, so serious as to warrant denial of the application. a one-bank holding company with no nonbank The financial and managerial resources and fu­ subsidiaries, is the nineteenth largest banking or­ ture prospects of Applicant, its subsidiaries and ganization in the state. Its subsidiary, Bank, has Bank are regarded as satisfactory. Considerations total deposits of approximately $356 million, rep­ relating to banking factors are consistent with resenting approximately 1.0 percent of the total approval of the application. Following the merger, deposits in commercial banks in Ohio. While Applicant will assist Bank in providing new and approval of the application would increase the improved services to its customers. In particular, share of total deposits held by the four largest banking organizations in Ohio, Applicant’s rank 3. The relevant banking market is the Canton banking in the state would remain unchanged. Accord­ market, which is approximated by Stark County (except ingly, the Board finds that the merger would not Lawrence Township and the western half of Lake Township), Ohio, and seven townships contiguous to the south and north­ east border of Stark County, including Augusta, Brown, East, and Rose Townships in Carroll County, Ohio; Lawrence, and 1. The Board received comments on various aspects of this Sandy Townships in Tuscarawas County, Ohio; and Smith application from Mr. Elliott A. Harkell, Cleveland, Ohio, who Township in Mahoning County, Ohio. objected primarily to the terms of the merger, particularly the 4. Under a recently enacted Ohio law, effective January 1, alternatives afforded the minority shareholders of BanCorp. 1979, an Ohio bank may branch de novo into counties conti­ Inasmuch as these objections do not relate to factors the Board guous with the county in which the bank’s home office is is required to consider under the Act, the Board does not located. believe that the comments warrant further consideration. Cf. 5. In its comment on the application, the Department of Western Bancshares, Inc. v. Board of Governors, 480 F.2d Justice concurs in the Board’s findings that consummation of 749 (10th Cir. 1973). the proposal will eliminate some potential competition, but 2. All banking data, unless otherwise indicated, are as of contrary to the Board’s findings, concludes on this basis alone June 30, 1978. that the overall effects on competition are adverse. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

570 Federal Reserve Bulletin □ July 1979 Applicant would assist Bank to expand its services views, has been given in accordance with section to businesses and municipal governments by of­ 3(b) of the Act. The time for filing comments and fering industrial bond financing, financial advisory views has expired and the Board has considered services, and cash management programs. Upon the application and all comments received in light affiliation with Applicant, Bank would have in­ of the factors set forth in section 3(c) of the Act creased lending capacity through access to the (12 U.S.C. § 1842(c)). financial resources of Applicant’s subsidiaries. Applicant, the tenth largest of 93 commercial Further, affiliation with Applicant would also en­ banking organizations in Massachusetts, controls able Bank to broaden its range of international four banks with aggregate deposits of $439.5 mil­ banking services. These considerations relating to lion, representing 2.3 percent of commercial bank the convenience and needs of the community to deposits in the state.1 Pioneer, the 31st largest be served do not appear to be substantial, but they banking organization in the state, owns two sub­ do lend some weight toward approval of the ap­ sidiary banks. Upon consummation of the pro­ plication, and in the Board’s view, outweigh the posed transaction, the resulting banking organi­ slightly adverse effects on competition that would zation would rank as the eighth largest in the state, result from consummation of this proposal. Ac­ controlling about 2.6 percent of total deposits in cordingly, it is the Board’s judgment that the commercial banks in Massachusetts. While the proposed acquisition would be in the public inter­ proposed merger would increase by 0.34 percent est and that the application should be approved. the share of total deposits held by the ten largest On the basis of the record, the application is banking organizations in the state, it does not approved for the reasons summarized above. The appear that the transaction would have any serious transaction shall not be consummated before the adverse effects on the concentration of banking thirtieth calendar day following the effective date resources in Massachusetts. of this Order, or more than three months after the Applicant’s lead bank, Third National Bank of effective date of this Order unless such period is Hampden County,2 Springfield, Massachusetts, is extended for good cause by the Board or by the the largest of nine commercial banks in the Federal Reserve Bank of Cleveland pursuant to Springfield banking market3 and controls $328.7 delegated authority. million in deposits.4 One of Pioneer’s subsidiary By order of the Board of Governors, effective banks, Pioneer National Bank/Hampshire, North­ June 8, 1979. ampton, Massachusetts, operates one branch office in the market and holds less than 0.1 percent of Voting for this action: Chairman Miller and Governor total market deposits, representing the smallest Partee. Voting against this action: Governor Wallich. market share of the nine competing banks. In view Present and abstaining: Governor Teeters. Absent and not voting: Governor Coldwell. of the small share of market deposits held by Pioneer’s subsidiary bank and the other competi­ (Signed) Theodore E. Allison, tive characteristics of the market, it appears that [seal] Secretary of the Board. the effect of the merger on existing competition would be only slightly adverse. Pioneer National Bank/Franklin, Greenfield, T.N.B. Financial Corporation, Massachusetts, is the largest of four commercial Springfield, Massachusetts banks competing in the Greenfield banking mar­ ket,5 and controls $40.6 million in deposits repre­ Order Approving senting 45.2 percent of total market deposits. Merger of Bank Holding Companies T.N.B. Financial Corporation, Springfield, Massachusetts, and Pioneer Bancorp, Inc. (“Pio­ 1. All banking data are as of December 31, 1978, unless neer”), Greenfield, Massachusetts, bank holding otherwise noted. companies within the meaning of the Bank Hold­ 2. Applicant’s three other subsidiary banks compete in markets separate from those markets in which Pioneer’s sub­ ing Company Act, have applied for the Board’s sidiary banks operate. approval under section 3(a)(5) of the Act (12 3. The Springfield banking market is approximated by the U.S.C. § 1842(a)(5)) to merge under the name and Springfield-Chicopee-Holyoke SMS A, minus the towns of Hadley, Hatfield, and Northampton City, Massachusetts, and charter of T.N.B. Financial Corporation (“Appli­ Somers, Connecticut. cant”). 4. Deposit data for the subsidiary banks are as of June 30, 1978. Notice of the application, affording opportunity 5. The Greenfield banking market comprises Greenfield and for interested persons to submit comments and eighteen surrounding towns in Franklin County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 571 Applicant does not operate in this market and its the record it is the Board’s judgment that the nearest subsidiary operates an office more than 20 proposed merger is in the public interest and that miles from Pioneer’s bank in another county. The the application should be approved. Greenfield market is not considered attractive for On the basis of the record, the application is de novo entry at this time. Therefore, the proposed approved for the reasons summarized above. The merger would have no adverse competitive effect transaction shall not be made before the thirtieth in this market. calendar day following the effective date of this Pioneer National Bank/Hampshire is the third Order, or later than three months after the effective largest of four commercial banks in the Amherst- date of this Order unless such period is extended Northampton banking market.6 It holds $15.4 for good cause by the Board or by the Federal million in deposits which represents 16.5 percent Reserve Bank of Boston pursuant to delegated of total commercial bank deposits in the market. authority. Applicant does not compete in this market, but By order of the Board of Governors, effective the market is somewhat attractive for de novo entry June 8, 1979. and Applicant has the resources to establish de novo branches and compete there effectively. Voting for this action: Chairman Miller and Gover­ nors Wallich, Partee, and Teeters. Absent and not However, in view of the size of the Pioneer bank voting: Governor Coldwell. and the nature of the market, it appears that competitive effects of the merger in this market (Signed) Theodore E. Allison, would be only slightly adverse. Accordingly, [seal] Secretary of the Board. based on the above and other facts of record, the Board has determined that consummation of this proposal would have only a slightly adverse effect on competition. C ertifications Pursuant to the The financial and managerial resources and fu­ Bank H olding Company Tax A ct of 1976 ture prospects of Applicant and its subsidiaries are considered generally satisfactory. Affiliation with C.I.T. Financial Corporation, Applicant is expected to increase the earnings New York, New York retention of Pioneer’s subsidiary banks and their Final Certification Pursuant to the Bank financial condition can be expected to improve. Holding Company Tax Act of 1976 Thus, considerations relating to banking factors [Docket No. TCR 76-167] lend some weight toward approval of the applica­ tion. C.I.T. Financial Corporation, New York, New Following consummation of the proposed trans­ York (“C.I.T.”), has requested a final certifi­ action, Applicant proposes to expand the services cation pursuant to section 6158(c)(2) of the Inter­ offered by Pioneer’s bank, including offering sixnal Revenue Code (“Code”), as added by section month money market certificates, Christmas Club 3(a) of the Bank Holding Company Tax Act of and Christmas Savings plans, and combined state­ 1976, that it has (before the expiration of the ments. Applicant also intends to expand the mort­ period prohibited property is permitted under the gage lending of Pioneer’s banks to include mort­ Bank Holding Company Act (12 U.S.C. § 1841 gage loans on one-to-four family owner-occupied et seq.) (“BHC Act”) to be held by a bank holding dwellings. Applicant also proposes to make avail­ company) ceased to be a bank company. able through Pioneer’s subsidiaries expanded floor In connection with this request, the following plan and accounts receivable financing and leasing, information is deemed relevant for purposes of and new services in the area of trust management. issuing the requested certification:1 The Board concludes that considerations relating 1. Effective April 9, 1979, the Board issued a to the convenience and needs of the communities prior certification pursuant to section 6158(a) of to be served lend sufficient weight toward approval the Code with respect to the proposed sale of 100 to outweigh any slightly adverse competitive ef­ percent of the oustanding voting shares of Na­ fects associated with this proposal. Based upon the foregoing and other considerations reflected in 1. This information derives from C.I.T.’s correspondence 6. The Amherst-Northampton banking market is composed with the Board concerning its request for this certification, of the city of Northampton, the town of Amherst, and 11 C.I.T.’s registration Statement filed with the Board pursuant surrounding towns in Hampshire and Franklin Counties. to the BHC Act, and other records of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

572 Federal Reserve Bulletin □ July 1979 tional Bank of North America, Jamaica, New York By order of the Board of Governors, acting (“NBNA”), to NatWest Holdings Inc., Wilming­ through its General Counsel pursuant to delegated ton, Delaware (“Holdings”), a wholly-owned authority (12 C.F.R. § 265.2(b)(3)), effective June subsidiary of National Westminster Bank Limited, 11, 1979. London, England (“NatWest”). The Board’s Order certified that: (Signed) G riffith L. Garwood, A. C.I.T. is a qualified bank holding corpora­ [seal] Deputy Secretary of the Board. tion within the meaning of section 1103(b) of the Code, and satisfies the requirements of that sec­ tion; Houston Corporation, B. the 5,660,130 shares, representing 97.49 Houston, Texas percent of the outstanding voting shares, of NBNA that C.I.T. proposes to sell to Holdings are all Prior Certification Pursuant to the or part of the property by reason of which C.I.T. Bank Holding Company Tax Act of 1976 controls within the meaning of section 2(a) of the [Docket No. TCR 76-172] BHC Act a bank or bank holding company; and C. the sale of such shares of NBNA is neces­ Houston Corporation, Houston, Texas (“Hous­ sary or appropriate to effectuate the policies of the ton”), has requested a prior certification pursuant BHC Act. to section 6158(a) of the Internal Revenue Code 2. On April 16, 1979, C.I.T. sold to Holdings (“Code”), as amended by section 2(a) of the Bank all of its interest in NBNA. Holding Company Tax Act of 1976, that its pro­ 3. The prior certification issued on April 9, posed divestiture of all of its 66,748 shares of Post 1979, was granted upon the condition that no Oak Bank, Houston, Texas (“Bank”), through person holding an office or position (including an the sale of such shares to W.S. Farish, III, is advisory or honorary position) as a director or necessary or appropriate to effectuate the policies officer of C.I.T. will hold any such office or of the Bank Holding Company Act (12 U.S.C. position with NatWest or any of its subsidiaries, § 1841 et seq.) (“BHC Act”). including Holdings and NBNA. Effective April In connection with this request the following 16, 1979, all such interlocking relationships be­ information is deemed relevant for purposes of tween C.I.T. and NBNA and their respective sub­ issuing the requested certification:1 sidiaries were terminated. 1. Houston is a corporation organized on Jan­ 4. C.I.T. has represented that it does not exer­ uary 11, 1945, under the laws of the State of cise a controlling influence over the management Delaware. or policies of NBNA, or any other bank or bank 2. Houston first acquired a significant interest holding company. Furthermore, C.I.T. has repre­ in Bank in 1963. It made several additional acqui­ sented that it does not control in any manner the sitions of Bank’s shares during the remainder of election of a majority of the directors, or own or the 1960’s, and on July 7, 1970, it owned and control, directly or indirectly, more than 5 percent controlled 20,527 shares, representing approxi­ of the outstanding shares of any other bank or bank mately 27.4 percent of the outstanding voting holding company. shares, of Bank. On the basis of the foregoing information, it 3. Houston became a bank holding company on is hereby certified that C.I.T. has (before the December 31, 1970, as a result of the 1970 expiration of the period prohibited property is amendments to the BHC Act by virtue of its permitted under the BHC Act to be held by a bank ownership and control at that time of more than holding company) ceased to be a bank holding 25 percent of the outstanding voting shares of company. Bank, and it registered as such with the Board This certification is based upon the repre­ on June 4, 1973. Houston would have been a bank sentations made to the Board by C.I.T. and upon holding company on July 7, 1970, if the BHC the facts set forth above. In the event the Board Act amendments of 1970 had been in effect on should hereafter determine that facts material to this certification are otherwise than as represented by C.I.T. or that C.I.T. has failed to disclose to 1. This information derives from Houston’s com­ munications with the Board concerning its request for this the Board other material facts, the Board may certitication, Houston’s registration statement filed with the revoke this certification. Board pursuant to the BHC Act, and other records of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 573 such date by virtue of its ownership and control those normally associated with such office or posi­ of more than 25 percent of the outstanding voting tion, will hold any such office or position or shares of Bank. Houston presently owns and con­ perform any such function with Bank or any of trols 66,748 shares, representing approximately 26 its subsidiaries or affiliates. percent of the outstanding voting shares, of Bank.2 On the basis of the foregoing information, it 4. Houston holds property acquired by it on or is hereby certified that: before July 7, 1970, the disposition of which, but A. Houston is a qualified bank holding cor­ for clause (ii) of section 4(c) and the proviso of poration, within the meaning of sections section 4(a)(2) of the BHC Act, would be neces­ 6158(f)(1) and 1103(b) of the Code, and satisfies sary or appropriate to effectuate section 4 of the the requirements of those sections; BHC Act if Houston were to remain a bank hold­ B. The shares of Bank that Houston proposes ing company beyond December 31, 1980, and to divest are all or part of the property by reason which property, but for such clause and such of which Houston controls (within the meaning proviso, would be “prohibited property” within of section 2(a) of the BHC Act) a bank or bank the meaning of section 6158(f)(2) and section holding company; and, 1103(c) of the Code. Sections 1103(g) and 1103(h) C. The divestiture of Bank’s shares is necessary of the Code provide that any bank holding com­ or appropriate to effectuate the policies of the BHC pany may elect, for the purposes of Part VIII of Act. Subchapter O of Chapter 1 of the Code and section This certification is based upon the repre­ 6158 of the Code, to have the determination sentations and commitments made to the Board whether its property is “prohibited property,” or by Houston and upon the facts set forth above. is property eligible to be distributed without rec­ In the event the Board should hereafter determine ognition of gain under section 1101(b)(1) of the that facts material to this certification are otherwise Code, made under the BHC Act as if that Act than as represented by Houston, or that Houston did not contain clause (ii) of section 4(c) and the has failed to disclose to the Board other material proviso of section 4(a)(2) thereof. Houston has facts, it may revoke this certification. represented that it will make such an election upon By order of the Board of Governors, acting receiving this prior certification and prior to the through its General Counsel, pursuant to delegated consummation of the proposed divestiture. authority (12 C.F.R. § 265.2(b)(3)), effective 5. Houston has committed to the Board that June 20, 1979. within 10 days after consummation of the proposed sale no person holding an office or position (in­ (Signed) Theodore E. A llison, cluding an advisory or honorary position) with [seal] Secretary of the Board. Houston or any of its subsidiaries as a director, officer, policymaking employee or consultant, or who performs (directly or through an agent, rep­ NCNB Corporation, resentative or a nominee) functions comparable to Charlotte, North Carolina Prior Certification Pursuant to the 2. Under section 1101(c) of the Code, property acquired after Bank Holding Company Tax Act of 1976 July 7, 1970, generally does not qualify for the tax benefits [Docket No. TCR 76-177] of section 6158(a) of the Code when distributed by an otherwise qualified bank holding company. However, where such prop­ erty was acquired by a qualified bank holding company in a NCNB Corporation (“NCNB”), Charlotte, transaction in which gain was not recognized under section North Carolina, has requested a prior certification 305(a) of the Code, then section 6158(a) is applicable. Houston pursuant to section 6158(a) of the Internal Revenue has indicated that it acquired an additional 45,157 shares of Bank through stock dividends with respect to the shares of Code (“Code”), as amended by section 3(a) of Bank held by it on July 7, 1970, and that gain was not the Bank Holding Company Tax Act of 1976 recognized under section 305(a) of the Code with regard to (“Tax Act”), that the proposed sale by its direct these dividends. Accordingly, even though such shares were acquired after July 7, 1970, those shares would nevertheless and indirect subsidiaries, TranSouth Financial qualify as property eligible for the tax benefits provided in Corporation (“TFC”), and TranSouth Mortgage section 6158(a), if those shares of Bank were, in fact, received Corporation, both of Florence, South Carolina,1 in a transaction in which gain was not recognized under section 305(a) of the Code. The remaining 1,064 shares of Bank now held by Houston were purchased after July 7, 1970, or received through stock dividends with respect to shares acquired after 1. TFC was formerly Stephenson Finance Company. TFC’s July 7, 1970. These shares are not eligible for the tax benefits subsidiary, TranSouth Mortgage Corporation, was formerly of section 6158(a) since none of the exceptions to section Associated Underwriters, a subsidiary of Stephenson Finance 1101(c) is applicable to them. Company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

574 Federal Reserve Bulletin □ July 1979 (collectively referred to as TranSouth) of a portion 4. TranSouth is engaged primarily in the busi­ of their business, represented by certain assets of ness of making direct and indirect consumer loans twenty-five offices which are described in Schedule originated through local consumer finance offices. A hereto (“TranSouth Business”), is necessary or On July 7, 1970, TranSouth conducted its con­ appropriate to effectuate section 4 of the Bank sumer finance business through numerous offices, Holding Company Act (12 U.S.C. § 1843) including 21 of the offices that comprise part of (“BHC Act”). TranSouth proposes to sell the the TranSouth Business for which certification is TranSouth Business to Beneficial Finance Co. of requested. Four of the offices, which comprise the North Carolina and Beneficial Mortgage Co. of remainder of the TranSouth Business for which North Carolina, both of which are subsidiaries of certification is requested, were established de novo Beneficial Corporation, Wilmington, Delaware by TranSouth between 1971 and 1973 as a result (collectively referred to as “Beneficial”). As con­ of internal expansion of its consumer finance busi­ sideration for the TranSouth Business, Beneficial ness. will pay TranSouth approximately $42 million in 5. By Order dated May 11, 1978, the Board cash, subject to certain adjustments. denied an application by NCNB for the Board’s In connection with this request, the following approval, pursuant to section 4(c)(8) of the BHC information is deemed relevant for purposes of Act to retain TranSouth’s consumer finance busi­ issuing the requested certification:2 ness beyond December 31, 1980. In denying the 1. NCNB is a corporation organized under the application, the Board cited adverse competitive laws of North Carolina on July 5, 1968. On effects resulting from the affiliation of TranSouth November 4, 1968, NCNB acquired ownership and NCNB in certain North Carolina markets and control of 2,903,818 shares, representing 99.9 where both Bank and TranSouth had offices. Sub­ percent of the outstanding voting shares, of North sequently, by Order dated October 27, 1978, the Carolina National Bank (“Bank”), Charlotte, Board approved an amended application by NCNB North Carolina. to retain TranSouth conditioned upon NCNB’s 2. NCNB became a bank holding company on commitment to divest as going concerns the 25 December 31, 1970, as a result of the 1970 offices of TranSouth, which comprise the Tran­ Amendments to the BHC Act, by virtue of its South Business to be sold to Beneficial. Thus, the ownership and control at that time of more than disposition of the TranSouth Business is necessary 25 percent of the outstanding voting shares of or appropriate to effectuate section 4 of the BHC Bank, and it registered as such with the Board Act if NCNB were to remain a bank holding on March 31, 1971. NCNB would have been a company beyond December 31, 1980. bank holding company on July 7, 1970, if the BHC On the basis of the foregoing information, it Act Amendments had been in effect on such date, is hereby certified that: by virtue of its ownership and control on that date (A) NCNB is a qualified bank holding corpora­ of more than 25 percent of the outstanding voting tion within the meaning of section 6158(f)(1) and shares of Bank. NCNB presently owns and con­ section 1103(b) of the Code, and satisfies the trols 100 percent (less directors’ qualifying shares) requirements of section 1103(b), and TranSouth of the outstanding voting shares of Bank. is a subsidiary of NCNB within the meaning of 3. TFC is the successor of a corporation organ­ § 6158(f)(1); 1103(b)(2)(A) and 1103(a)(1)(B) of ized under the laws of the State of South Carolina the Code and § 2(d) of the BHC Act; on December 30, 1946. On June 26, 1969, NCNB (B) the TranSouth Business that TranSouth acquired ownership of 99.6 percent of the out­ proposes to sell to Beneficial is “prohibited prop­ standing voting shares of TFC’s predecessor cor­ erty” within the meaning of 6158(f)(2) and poration. On February 28, 1970, in a reorganiza­ 1103(c) of the Code;3 and tion and liquidation of TFC’s predecessor cor­ (C) the sale of the TranSouth Business is nec­ poration, NCNB acquired 100 percent of the out­ essary or appropriate to effectuate section 4 of the standing voting shares of TFC. BHC Act. 3. The TranSouth Business includes four consumer finance offices that were established de novo by TranSouth after July 7, 1970. Under section 1101(c) of the Code, property acquired 2. This information derives from NCNB’s correspondence after July 7, 1970, generally does not qualify for the tax benefits with the Board concerning its request for certification, NCNB’s of section 6158(a) of the Code when sold by an otherwise Registration Statement filed with the Board pursuant to the qualified bank holding company. However, the divestiture of BHC Act, and other records of the Board. the four de novo offices, which represent a relatively unsub- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 575 This certification is based upon the repre­ 618 Foster Street sentations made to the Board by NCNB and upon Durham, North Carolina the facts set forth above. In the event the Board should hereafter determine that facts material to Meadowgreen Shopping Center this certification are otherwise than as represented Eden, North Carolina by NCNB or that NCNB has failed to disclose to the Board other material facts, it may revoke 500 North Green Street this certification. Greensboro, North Carolina By order of the Board of Governors acting through its General Counsel, pursuant to delegated 154 Rose Avenue authority (12 C.F.R. § 265.2(b)(3)), effective Henderson, North Carolina June 29, 1979. (Signed) G riffith L. G arwood, 747 Fourth Street, S.W. [seal] Deputy Secretary of the Board. Hickory, North Carolina 125 Linden Avenue High Point, North Carolina Schedule A NCNB Corporation 717 North Queen Street [Docket No. 76-177] Kingston, North Carolina The following is a description of the TranSouth 514 North Main Street Business to be sold to Beneficial to which this prior Lexington, North Carolina certification relates. In particular, the TranSouth Business consists of the loan receivables (except 125 East Murphy Street for working capital loans, commercial loans, and Madison, North Carolina recreational lot notes), leasehold interests, physi­ cal assets, the state licenses of each of the offices of TranSouth operating at the following locations: Highway 70 West North Carolina 232 East Main Street Ahoskie, North Carolina 209 North Green Morganton, North Carolina 823 West Salisbury Street Asheboro, North Carolina 324 North South Street Mount Airy, North Carolina Watauga Village Shopping Center Boone, North Carolina 105 East Martin Street Raleigh, North Carolina 312 Hoffman Mill Road Burlington, North Carolina 115 East Gilmer Street Reidsville, North Carolina Executive Park - Suite 203 831 Baxter Street 125 East Front Street Charlotte, North Carolina Statesville, North Carolina stantial portion of the TranSouth Business, is in furtherance 18 West Main Street of the purposes of section 4 of BHC Act. Accordingly, to Thomas ville, North Carolina the extent that the de novo, offices are determined to have been established by TranSouth as a result of internal expansion to engage in the same line of business conducted by TranSouth 4408 Shipyard Boulevard on July 7, 1970, they may be regarded as part of the TranSouth Business, and therefore, prohibited property. Wilmington, North Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

576 Federal Reserve Bulletin □ July 1979 4007 Oleander Dr. between Applicant and Bank inasmuch as none Wilmington, North Carolina of Applicant’s subsidiary banks, including Huron Bank, operate in the relevant banking market. 121 South Tarboro Street While Applicant could enter the market de novo Wilson, North Carolina by establishing a de novo bank or branch in the relevant banking market,4 the market with its de­ clining population appears to be unattractive for Boulevard Plaza Shopping Center de novo entry. Furthermore, while Bank could Wilson, North Carolina branch into the banking market where Huron Bank operates, that market likewise appears unattractive for de novo entry. Based on the foregoing, it National City Corporation, appears that acquisition of Bank by Applicant Cleveland, Ohio would not have any significant effects on potential competition. Accordingly, the Board concludes Order Approving Acquisition of Bank that the proposed acquisition would have no sig­ nificantly adverse effects on competition. National City Corporation, Cleveland, Ohio, a The financial and managerial resources and fu­ bank holding company within the meaning of the ture prospects of Applicant, its subsidiaries, and Bank Holding Company Act, has applied for the Bank are regarded as satisfactory and consistent Board’s approval under § 3(a)(3) of the Act (12 with approval of the application. In addition, af­ U.S.C. § 1842(a)(3)) to acquire all of the voting filiation with Applicant would enable Bank to offer shares of The First National Bank, Galion, Ohio a variety of new or improved services to its cus­ (“Bank”). tomers, and would result in increased availability Notice of the application, affording opportunity of loans to Bank’s customers and its community. for interested persons to submit comments and These potential improvements in Bank’s ability to views, has been given in accordance with § 3(b) serve the convenience and needs of its community of the Act. The time for filing comments and views lend weight toward approval of the application. has expired, and the Board has considered the Accordingly, the Board has determined that the application and all comments received in light of proposed acquisition would be in the public inter­ the factors set forth in section 3(c) of the Act (12 est and that the application should be approved. U.S.C. § 1842(c)). On the basis of the record, the application is Applicant, the third largest banking organization approved for the reasons summarized above. The in Ohio, controls seven banks1 with aggregate transaction shall not be made before the thirtieth deposits of approximately $2.2 billion representing calendar day following the effective date of this approximately 6.0 percent of total deposits in Order or later than three months after the effective commercial banks in the state.2 Acquisition of date of this Order, unless that period is extended Bank, the 145th largest banking organization in for good cause by the Board, or by the Federal the state with deposits of $25.1 million, repre­ Reserve Bank of Cleveland pursuant to delegated senting 0.06 percent of statewide deposits, would authority. not alter Applicant’s statewide rank or signifi­ By order of the Board of Governors, effective cantly increase its share of deposits in the state. June 8, 1979. Accordingly, consummation of the proposal would not have an appreciable effect on the concentration Voting for this action: Chairman Miller and Gover­ of banking resources in the State of Ohio. nors Wallich, Partee, and Teeters. Absent and not Bank is the largest of two banks in the Galion voting: Governor Coldwell. banking market, and controls 53.1 percent of market deposits.3 No significant competition exists (Signed) Theodore E. A llison, [seal] Secretary of the Board. 1. In addition, Applicant acquired The Huron County Banking Company, N.A., Norwalk, Ohio (“Huron Bank”) on April 30, 1979. 2. All banking data are as of June 30, 1978, and do not reflect the pending acquisition of Huron Bank. 3. This market is defined to include Polk Township in 4. Effective January 1, 1979, an Ohio Bank may branch Crawford County and Washington and North Bloomfield de novo into counties contiguous with the county in which Townships in Morrow County. the bank’s home office is located. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 577 Orders Approved Under Bank Holding Company Act By the Board of Governors During June 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) First National Cincinnati The Commercial and Savings Bank June 25, 1979 Corporation, Cincinnati, Ohio of Gallipolis, Gallipolis, Ohio Metropolitan Bancshares, Inc., The Metropolitan Bank, June 22, 1979 Kansas City, Missouri Kansas City, Missouri Montgomery Bancorporation, Inc., Citizens State Bank of Montgomery, June 21, 1979 Montgomery, Minnesota Montgomery, Minnesota Suburban Bancorp, Inc., Palatine National Bank, June 7, 1979 Palatine, Illinois Palatine, Illinois 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 Banks(s) Bank date First Community Bancorporation, Bank of Table Rock Lake, Kansas June 16, 1979 Joplin, Missouri Reeds Spring, Missouri City Hawkeye Bancorporation, Lake City State Bank, Chicago June 15, 1979 Des Moines, Iowa Lake City, Iowa Horizon Bancorp, Bergen Bank of Commerce, New York June 21, 1979 Morristown, New Jersey Paramus, New Jersey Independent Bank Corporation, The Olivet State Bank, Chicago June 12, 1979 Ionia, Michigan Olivet, Michigan NB Corporation, Jefferson Bank of the Valley, Richmond June 21, 1979 Charlottesville, Virginia Fisherville, Virginia Independent Bankshares Gold Country Bank, San May 31, 1979 Corporation, Grass Valley, California Francisco San Rafael, California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

578 Federal Reserve Bulletin □ July 1979 Sections 3 and 4 Nonbanking company Reserve Effective Applicant Bank(s) (or activity) Bank date Minonk Bancshares, Minonk State Bank, to engage in the Chicago June 21, 1979 Inc., Minonk, Illinois Minonk, Illinois sale of insurance Section 4 Nonbanking company Reserve Effective Applicant (or activity) Bank date Wells Fargo & Company, underwriting credit life San June 14, 1979 San Francisco, California insurance in the State Francisco of Arizona Pending Cases Involving the Board of Governors Does not include suits against the Federal Reserve Consumers Union of the United States, v. G. Banks in which the Board of Governors is not named William Miller, et al., filed December 1978, a party. U.S.D.C. for the District of Columbia. Ella Jackson et al., v. Board of Governors, filed Connecticut Bankers Association, etal., v. Board November 1978, U.S.C.A. for the Fifth Circuit. of Governors, filed May 1979, U.S.C.A. for Manchester-Tower Grove Community Organi­ the District of Columbia. zation/ACORN v. Board of Governors, filed Ella Jackson et al., v. Board of Governors, filed September 1978, U.S.C.A. for the District of May 1979, U.S.C.A. for the Fifth Circuit. Columbia. Memphis Trust Company v. Board of Governors, Beckley v. Board of Governors, filed July 1978, filed May 1979, U.S.C.A. for the Sixth Circuit. U.S.C.A. for the Northern District of Illinois. U.S. Labor Party v. Board of Governors, filed Independent Bankers Association of Texas v. First April 1979, U.S.C.A. for the Second Circuit. National Bank in Dallas, et al., filed July 1978, U.S. Labor Party v. Board of Governors, filed U.S.C.A. for the Northern District of Texas. April 1979, U.S.C.A. for the Second Circuit. Mid-Nebraska Bancshares, Inc. v. Board of Gov­ Independent Insurance Agents of America, et al., ernors, filed July 1978, U.S.C.A. for the Dis­ v. Board of Governors, filed May 1979, trict of Columbia. U.S.C.A. for the District of Columbia. NCNB Corporation v. Board of Governors, filed Independent Insurance Agents of America, et al., June 1978, U.S.C.A. for the Fourth Circuit. v. Board of Governors, filed April 1979, United States League of Savings Associations v. U.S.C.A. for the District of Columbia. Board of Governors, filed May 1978, U.S.D.C. Independent Insurance Agents of America, et al., for the District of Columbia. v. Board of Governors, filed March 1979, Citicorp v. Board of Governors, filed March 1978, U.S.C.A. for the District of Columbia. U.S.C.A. for the Second Circuit. Credit and Commerce American Investment, et Security Bancorp and Security National Bank v. al., v. Board of Governors, filed March 1979 Board of Governors, filed March 1978, U.S.C.A. for the District of Columbia. U.S.C.A. for the Ninth Circuit. California Life Corporation v. Board of Gover­ Michigan National Corporation v. Board of Gov­ nors, filed January 1979, U.S.C.A. for the ernors, filed January 1978, U.S.C.A. for the District of Columbia. Sixth Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 579 Wisconsin Bankers Association v. Board of Gov­ BankAmerica Corporation v. Board of Gover­ ernors, filed January 1978, U.S.C.A. for the nors, filed May 1977, U.S.C.A. for the Ninth District of Columbia. Circuit. Vickars-Henry Corp. v. Board of Governors, filed Roberts Farms, Inc. v. Comptroller of the Cur­ December 1977, U.S.C.A. for the Ninth Cir­ rency, et al., filed November 1975, U.S.D.C. cuit. for the Southern District of California. Investment Company Institute v. Board of Gover­ David R. Merrill, et al., v. Federal Open Market nors, filed September 1977, U.S.D.C. for the Committee of the Federal Reserve System, filed District of Columbia. May 1975, U. S. D. C. f or the District of Columbia. BankAmerica Corporation v. Board of Gover­ Bankers Trust New York Corporation v. Board nors, filed May 1977, U.S.D.C. for the North­ of Governors, filed May 1973, U.S.C.A. for ern District of California. the Second Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

580 Membership of the Board of Governors of the Federal Reserve System, 1913-79 Appointive M embers1 Federal Reserve Date of initial Other dates and information relating Name District oath of office _________ to membership2__________ Charles S. Hamlin ..................Boston..................Aug. 10, 1914 Reappointed in 1916 and 1926. Served until Feb. 3, 1936.3 Paul M. Warburg ...................New York .....................do Term expired Aug. 9, 1918. Frederic A. Delano ................Chicago .........................do Resigned July 21, 1918. W. P. G. Harding ..................Atlanta ..........................do Term expired Aug. 9, 1922. Adolph C. Miller ...................San Francisco ..............do Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936.3 Albert Strauss ......................New York ...........Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah..........Chicago ..............Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Platt .........................New York ..........June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. David C. Wills .....................Cleveland ..........Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell....................Minneapolis .......May 12, 1921 Resigned May 12, 1923. Milo D. Campbell ................Chicago ..............Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger.............Cleveland ..........May 1, 1923 Resigned Sept. 15, 1927. George R. James ..................St. Louis ............May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936.3 Edward H. Cunningham......Chicago .......................do.......... Died Nov. 28, 1930. Roy A. Young..........................Minneapolis ........Oct. 4, 1927 Resigned Aug. 31, 1930. Eugene Meyer ..................... .New York ...........Sept. 16, 1930 Resigned May 10, 1933. Wayland W. Magee .............Kansas City .......May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black ..................Atlanta ...............May 19, 1933 Resigned Aug. 15, 1934. M. S. Szymczak....................Chicago ..............June 14, 1933 Reappointed in 1936 and 1948. Resigned May 31, 1961. J. J. Thomas............................Kansas City . .............do.......... Served until Feb. 10, 1936.3 Marriner S. Eccles..................San Francisco ...Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick.............New York ..........Feb. 3, 1936 Resigned Sept. 30, 1937. John K. McKee.....................Cleveland ....................do.......... Served until Apr. 4, 1946.3 Ronald Ransom ....................Atlanta ........................do.......... Reappointed in 1942. Died Dec. 2, 1947. Ralph W. Morrison...............Dallas .................Feb. 10, 1936 Resigned July 9, 1936. Chester C. Davis ..................Richmond ..........June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. Ernest G. Draper ..................New York ..........Mar. 30, 1938 Served until Sept. 1, 1950.3 Rudolph M. Evans ...............Richmond ..........Mar. 14, 1942 Served until Aug. 13, 1954.3 James K. Vardaman, Jr..........St. Louis ............Apr. 4, 1946 Resigned Nov. 30, 1958. Lawrence Clayton ................Boston.................Feb. 14, 1947 Died Dec. 4, 1949. Thomas B. McCabe .............Philadelphia .......Apr. 15, 1948 Resigned Mar. 31, 1951. Edward L. Norton ................Atlanta ...............Sept. 1, 1950 Resigned Jan. 31, 1952. OliverS. Powell....................Minneapolis ................do.......... Resigned June 30, 1952. Wm. McC. Martin, Jr............New York ..........Apr. 2, 1951 Reappointed in 1956. Term expired Jan. 31, 1970. A. L. Mills, Jr.........................San Francisco ...Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J. L. Robertson .......................Kansas City , do Reappointed in 1964. Resigned Apr. 30, 1973. For notes, see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Membership of the Board of Governors, 1913-79 581 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 Paul E. Miller ................ .......Minneapolis ___ . Aug. 13, 1954 Died Oct. 21, 1954. C. Canby Balderston ... .......Philadelphia ___ . Aug. 12, 1954 Served through Feb. 28, 1966. Chas. N. Shepardson ... .......Dallas ................ Mar. 17, 1955 Retired Apr. 30, 1967. G. H. King, Jr.........................Atlanta ............... Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. George W. Mitchell .......Chicago ............. • Aug. 31, 1961 Reappointed in 1962. Served until Feb. 13, 1976.3 J. Dewey Daane ............ .......Richmond ......... Nov. 29, 1963 Served until Mar. 8, 1974.3 Sherman J. Maisel......... San Francisco ... Apr. 30, 1965 Served through May 31, 1972. Andrew F. Brimmer , .......Philadelphia ___ . Mar. 9, 1966 Resigned Aug. 31, 1974. William W. Sherrill .......Dallas ................ , May 1, 1967 Reappointed in 1968. Resigned Nov. 15, 1971. Arthur F. Burns ............ .......New York ......... Jan. 31, 1970 Term began Feb. 1, 1970. Resigned Mar. 31, 1978. John E. Sheehan ............ .......St. Louis ........... . Jan. 4, 1972 Resigned June 1, 1975. Jeffrey M. Bucher ......... San Francisco ... June 5, 1972 Resigned Jan. 2, 1976. Robert C. Holland ................Kansas City ___ June 11, 1973 Resigned May 15, 1976. Henry C. Wallich..................Boston................ Mar. 8, 1974 Philip E. Coldwell................Dallas ................ Oct. 29, 1974 Philip C. Jackson, Jr. .......Atlanta ............... July 14, 1975 Resigned Nov. 17, 1978. J. Charles Partee............ .......Richmond ......... . Jan. 5, 1976 Stephen S. Gardner....... .......Philadelphia ___ Feb. 13, 1976 Died Nov. 19, 1978. David M. Lilly .............. .......Minneapolis ___ June 1, 1976 Resigned Feb. 24, 1978. G. William Miller ......... San Francisco ... Mar. 8, 1978 Nancy H. Teeters..................Chicago ............. Sept. 18, 1978 Emmett J. Rice .............. .......New York ......... .June 20, 1979 Chairmen4 Vice Chairmen4 Charles S. Hamlin__Aug. 10, 1914-Aug. 9, 1916 Frederic A. Delano ...Aug. 10, 1914-Aug. 9, 1916 W. P. G. Harding ... .Aug. 10, 1916-Aug. 9, 1922 Paul M. Warburg .......Aug. 10, 1916-Aug. 9, 1918 Daniel R. Crissinger ..May 1, 1923-Sept. 15, 1927 Albert Strauss ............Oct. 26, 1918-Mar. 15, 1920 Roy A. Young............Oct. 4, 1927-Aug. 31, 1930 Edmund Platt ..............July 23, 1920-Sept. 14, 1930 Eugene Meyer ............Sept. 16, 1930-May 10, 1933 J. J. Thomas................Aug. 21, 1934-Feb. 10, 1936 Eugene R. Black .......May 19, 1933-Aug. 15, 1934 Ronald Ransom .........Aug. 6, 1936-Dec. 2, 1947 Marriner S. Eccles__Nov. 15, 1934-Jan. 31, 1948 C. Canby Balderston Mar. 11, 1955-Feb. 28, 1966 Thomas B. McCabe...Apr. 15, 1948-Mar. 31, 1951 J. L. Robertson ...........Mar. 1, 1966-Apr. 30, 1973 Wm.McC.Martin,Jr...Apr. 2, 1951-Jan. 31, 1970 George W. Mitchell ..May 1, 1973-Feb. 13, 1976 Arthur F. Burns .........Feb. 1, 1970-Jan. 31, 1978 StephenS. Gardner ...Feb. 13, 1976-Nov. 19, 1978 G. William Miller __Mar. 8, 1978- Ex-O fficio M embers1 Secretaries of the Treasury Comptrollers of the Currency W. G. McAdoo Dec. 23, 1913--Dec. 15, 1918 John Skelton Williams Feb. 2, 1914-Mar. 2, 1921 Carter Glass .............. Dec. 16, 1918--Feb. 1, 1920 Daniel R. Crissinger ..Mar. 17, 1921-Apr. 30, 1923 David F. Houston ... .Feb. 2, 1920--Mar. 3, 1921 Henry M. Dawes .......May 1, 1923-Dec. 17, 1924 Andrew W. Mellon ...Mar. 4, 1921-Feb. 12, 1932 Joseph W. McIntosh ..Dec. 20, 1924-Nov. 20, 1928 Ogden L. Mills ......... Feb. 12, 1932--Mar. 4, 1933 J. W. Pole ...................Nov. 21, 1928-Sept. 20, 1932 William H. Woodin ..Mar. 4, 1933-Dec. 31, 1933 J. F. T. O’Connor __May 11, 1933-Feb. 1, 1936 Henry Morgenthau, Jr.Jan. 1, 1934--Feb. 1, 1936 1. Under the provisions of the original Federal Reserve Act Secretary of the Treasury and the Comptroller of the Currency the Federal Reserve Board was composed of seven members, should continue to serve as members until Feb. 1, 1936; that including five appointive members, the Secretary of the Treas­ the appointive members in the office on the date of that act ury, who was ex-officio chairman of the Board, and the should continue to serve until Feb. 1, 1936, or until their Comptroller of the Currency. The original term of office was successors were appointed and had qualified; and that thereafter ten years, and the five original appointive members had terms the terms of members should be 14 years and that the designa­ of two, four, six, eight, and ten years, respectively. In 1922 tion of Chairman and Vice Chairman of the Board should be the number of appointive members was increased to six, and for a term of four years. in 1933 the term of office was increased to 12 years. The 2. Date after words “Resigned” and “Retired” denotes Banking Act of 1935, approved Aug. 23, 1935, changed the final day of service. name of the Federal Reserve Board to the Board of Governors 3. Successor took office on this date. of the Federal Reserve System and provided that the Board 4. Chairman and Vice Chairman were designated Governor should be composed of seven appointive members; that the and Vice Governor before Aug. 23, 1935. 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 A4 Factors allecting member bank reserves A20 All reporting banks A5 Reserves and borrowings of member A21 Banks in New York City banks A22 Banks outside New York City A6 Federal funds transactions of money A23 Balance sheet memoranda market banks A24 Commercial and industrial loans A25 Gross demand deposits of individuals, Policy Instruments partnerships, and corporations A8 Federal Reserve Bank interest rates A9 Member bank reserve requirements Financial Markets A10 Maximum interest rates payable on A25 Commercial paper and bankers time and savings deposits at federally acceptances outstanding insured institutions A26 Prime rate charged by banks on All Federal Reserve open market short-term business loans transactions A26 Terms of lending at commercial banks All Interest rates in money and capital Federal Reserve Banks markets A28 Stock market—Selected statistics A12 Condition and Federal Reserve note statements A29 Savings institutions—Selected assets A13 Maturity distribution of loan and and liabilities security holdings 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 securities—Ownership, by maturity Commercial Bank Assets and Liabilities A34 U.S. government securities dealers— A16 Last-Wednesday-of-month series Transactions, positions, and financing A17 Call-date series A35 Federal and federally sponsored credit A18 Detailed balance sheet, September 30, 1978 agencies—Debt outstanding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin □ July 1979 Securities Markets and International Statistics Corporate Finance A54 U.S. international transactions1— 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 A58 Liabilities to and claims on foreigners A59 Liabilities to foreigners A61 Banks’ own claims on foreigners Real Estate A62 Banks’ own and domestic customers’ A40 Mortgage markets claims on foreigners A41 Mortgage debt outstanding A62 Banks’ own claims on unaffiliated foreigners A63 Claims on foreign countries— Combined domestic offices and Consumer Installment Credit foreign branches A42 Total outstanding and net change A43 Extensions and liquidations Securities Holdings and Transactions A64 Marketable U.S. Treasury bonds and Flow of Funds notes—Foreign holdings and transactions A64 Foreign official assets held at Federal A44 Funds raised in U.S. credit markets Reserve Banks A45 Direct and indirect sources of funds to A65 Foreign transactions in securities credit markets Reported by Nonbanking Business Domestic Nonfinancial Statistics Enterprise in the United States A46 Nonfinancial business activity— A66 Liabilities to unaffiliated foreigners Selected measures A67 Claims on unaffiliated foreigners A46 Output, capacity, and capacity utilization A47 Labor force, employment, and Interest and Exchange Rates unemployment A68 Discount rates of foreign central banks A48 Industrial production—Indexes and A68 Foreign short-term interest rates gross value A50 Housing and construction A51 Consumer and wholesale prices A69 Guide to Tabular Presentation A52 Gross national product and income and Statistical Releases A53 Personal income and saving Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1978 r 1979 1979 Item Q2 Q3 Q4 Ql Jan. Feb. Mar. Apr. May Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)^ Member bank reserves 1 Total........................................................................................ 6.2 8.6 2.3 -2.9 6.0 -21.0 1.8 -4.9 -4.3 2 Required................................................................................. 6.7 8.6 2.1 -2.8 6.6 -20.9 3.3 -5.5 -3.3 3 Nonborrowed......................................................................... .6 6.6 4.6 -3.3 2.2 -20.6 1.3 r —2.9 -30.0 4 Monetary base1..................................................................... 7.6 9.3 8.4 5.7 8.6 -.5 4.6 '4.9 3.3 Concepts of money 2 5 M-l.......................................................................................... 9.2 7.9 4.1 -2.1 -5.0 -3.7 1.3 17.7 .7 6 M-1 +...................................................................................... 7.2 6.1 2.6 -5.0 -8.0 -6.6 '-1.0 '11.0 -2.3 7 M-2.......................................................................................... 8.4 9.8 7.6 1.8 -1.1 2.3 3.8 14.1 5.4 8 M-3.......................................................................................... 8.4 10.3 9.3 4.7 2.9 4.8 6.2 r10.5 4.7 Time and savings deposits Commercial banks 9 Total.................................................................................... 11.5 11.3 12.3 8.4 9.0 8.6 -1.4 2.1 -1.4 10 Savings................................................................................ 3.8 2.9 0.2 -9.6 -11.8 -12.0 -4.9 0 -7.2 11 Other time........................................................................... 11.4 17.9 18.2 15.6 12.8 20.0 13.2 20.2 19.2 12 Thrift institutions 3................................................................. 8.5 11.1 11.6 8.8 8.3 8.2 9.5 r5.6 3.6 13 Total loans and investments at commercial banks4............ 14.9 11.8 10.7 11.0 25.3 10.9 5.8 r13.8 11.1 1978 1979 1979 Q3 Q4 Ql Q2 Feb. Mar. Apr. May June Interest rates (levels, percent per annum) Short-term rates 14 Federal funds 5....................................................................... 8.09 9.58 10.07 10.18 10.06 10.09 10.01 10.24 10.29 15 Federal Reserve discount6.................................................... 7.50 9.09 9.50 9.50 9.50 9.50 9.50 9.50 9.50 16 Treasury bills (3-month market yield)7............................... 7.31 8.57 9.38 9.38 9.32 9.48 9.46 9.61 9.06 17 Commercial paper (90- to 119-day)7.8................................. 8.03 9.83 10.04 9.85 9.95 9.90 9.85 9.95 9.76 Long-term rates Bonds 18 U.S. government^............................................................... 8.53 8.78 9.03 9.08 9.03 9.08 9.12 9.21 8.91 19 State and local government10.......................................... 6.16 6.28 6.37 6.22 6.31 6.33 6.29 6.25 6.13 20 Aaa utility (new issue)11................................................... 8.94 9.23 9.58 9.66 9.53 9.62 9.70 9.83 9.50 21 Conventional mortgages12.................................................... 9.80 10.12 10.33 n.a. 10.35 10.35 10.55 10.80 n.a. 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 outside the U.S. 7. Quoted on a bank-discount basis. Treasury, Federal Reserve Banks and the vaults of commercial banks; 8. Beginning Nov. 1977, unweighted average of offering rates quoted and vault cash of nonmember banks. by at least five dealers. Previously, most representative rate quoted by 2. M-l equals currency plus private demand deposits adjusted. these dealers. M-1 + equals M-l plus savings deposits at commercial banks, NOW 9. Market yields adjusted to a 20-year maturity by the U.S. Treasury. accounts at banks and thrift institutions, credit union share draft ac­ 10. Bond Buyer series for 20 issues of mixed quality. counts, and demand deposits at mutual savings banks. 11. Weighted averages of new publicly offered bonds rated Aaa, Aa, M-2 equals M-l plus bank time and savings deposits other than large and A by Moody’s Investors Service and adjusted to an Aaa basis. negotiable certificates of deposit (CDs). Federal Reserve compilations. M-3 equals M-2 plus deposits at mutual savings banks, savings and 12. Average rates on new commitments for conventional first mortgages loan associations, and credit union shares. on new homes in primary markets, unweighted and rounded to nearest 3. Savings and loan associations, mutual savings banks, and credit 5 basis points, from Dept, of Housing and Urban Development. unions. 13. Unless otherwise noted, rates of change are calculated from average 4. Quarterly changes calculated from figures shown in table 1.23. amounts outstanding in preceding month or quarter. Growth rates for 5. Seven-day averages of daily effective rates (average of the rates on member bank reserves are adjusted for discontinuities in series that result a given date weighted by the volume of transactions at those rates). from changes in Regulations D and M. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics □ July 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 Apr. May Junep May 16 May 23 May 30 June 6 June 13 June 20p June 21 p Supplying Reserve Funds 1 Reserve Bank credit outstanding......... 127,462 128,597 129,079 128,308 127,931 128,578 127,087 128,073 130,177 129,584 2 U.S. government securities 1................ 105,618 106,100 106,865 106,384 106,136 106,000 104,182 106,024 108,052 107,704 3 Bought outright................................... 105,369 106,003 105,825 106,384 106,136 105,763 104,038 106,024 105,777 107,212 4 Held under repurchase agree­ ments .................................................. 249 97 1,040 0 0 237 144 0 2,275 492 5 Federal agency securities...................... 7,515 7,475 7,788 7,434 7,434 7,468 7,438 7,409 7,911 7,945 6 Bought outright................................... 7,464 7,433 7,537 7,434 7,434 7.425 7,423 7,409 7,443 7,761 7 Held under repurchase agree­ ments .................................................. 51 42 251 0 0 43 15 0 468 184 8 Acceptances............................................... 61 40 310 0 0 91 6 0 537 185 9 Loans........................................................... 897 1,777 1,395 1,759 1,703 2,327 1,340 1,299 1,324 1,587 10 Float............................................................ 6,518 6,652 6,428 6,090 6,688 5,927 7,653 7,029 5,949 5,969 11 Other Federal Reserve assets.............. 6,853 6,553 6,293 6,641 5,970 6,764 6,468 6,313 6,404 6,195 12 Gold stock................................................. 11,435 11,370 11,328 11,354 11,354 11,354 11,350 11,323 11,323 11,323 13 Special drawing rights certificate account.................................................... 1,300 1,413 1,800 1,300 1,300 1.729 1,800 1,800 1,800 1,800 14 Treasury currency outstanding........... 12,162 12,234 12,349 12,221 12,240 12,256 12,289 12,315 12,355 12,403 Absorbing Reserve Funds 15 Currency in circulation.......................... 113,369 114,276 115,810 114,363 114,210 114,690 115,334 115,852 115.870 115,837 16 Treasury cash holdings.......................... 392 373 370 357 361 365 358 372 374 370 Deposits, other than member bank reserves, with Federal Reserve Banks 17 Treasury...................................................... 2,623 3,350 3,271 3,208 2,960 2,916 2,396 3,448 3,482 3,550 18 Foreign........................................................ 286 281 284 241 252 312 294 245 297 297 19 Other............................................................ 673 821 661 617 568 1,431 724 630 691 587 20 Other Federal Reserve liabilities and capital...................................................... 4,340 4,305 4,294 4,234 4,340 4,540 4,039 4,133 4,376 4,458 21 Member bank reserves with Federal Reserve Banks...................................... 30,675 30,208 29,866 30,165 30,133 29,663 29,383 28,831 30,566 30,012 End-of-month figures Wednesday figures 1979 1979 Apr. May June** May 16 May 23 May 30 June 6 June 13 June 20p June 21 p Supplying Reserve Funds 22 Reserve bank credit outstanding.......... 132,175 129,733 130,946 127,711 126,306 131,095 124,331 126,316 129,121 133,582 23 U.S. government securities1................ 108,588 106,185 109,737 104,681 104,009 107,701 101,763 103,140 105,122 109,341 24 Bought outright................................... 107,287 106,185 106,432 104,681 104,009 106,871 100,759 103,140 103,930 106,793 25 Held under repurchase agree­ ments .................................................. 1,301 0 3,305 0 0 830 1,004 0 1,192 2,548 26 Federal agency securities...................... 7,613 7,423 8,587 7.434 7,434 7,574 7,528 7,390 7,778 8,758 27 Bought outright................................... 7,464 7,423 7,761 7,434 7.434 7,423 7,423 7,390 7,761 7,761 28 Held under repurchase agree­ ments .................................................. 149 0 826 0 0 151 105 0 17 997 29 Acceptances............................................... 252 0 1,400 0 0 319 43 0 216 840 30 Loans.......................................................... 1,256 1,330 1,558 1,908 2,075 3,468 1,583 981 1,929 2,922 31 Float............................................................ 7,361 8,518 3,898 7,598 6,835 5.690 6,833 8,322 7,404 5,686 32 Other Federal Reserve assets.............. 7,105 6,277 5,766 6,090 5,953 6,343 6,581 6,483 6,672 6,035 33 Gold stock................................................. 11,416 11,354 11,323 11,354 11,354 11,354 11,325 11,323 11,323 11,323 34 Special drawing rights certificate account................................................... 1,300 1,800 1,800 1.300 1,300 1,800 1,800 1,800 1,800 1,800 35 Treasury currency outstanding........... 12,242 12,362 12,409 12,225 12,251 12,268 12,289 12,347 12,365 12,409 Absorbing Reserve Funds 36 Currency in circulation......................... 113,234 115.335 116,432 114,635 114.497 115,346 115,951 116,292 116,087 116,479 37 Treasury cash holdings.......................... 370 364 400 351 384 361 364 359 362 365 Deposits, other than member bank reserves, with Federal Reserve Banks 38 Treasury...................................................... 3,100 1,974 3.290 3,398 3,259 2,443 4,762 3,280 2,899 3,597 39 Foreign........................................................ 388 407 326 245 218 334 295 208 294 270 40 Other............................................................ 813 852 813 569 642 735 532 595 685 573 41 Other Federal Reserve liabilities and capital...................................................... 4,641 4,715 4,836 4,290 4,364 4,670 3,994 4,360 4,346 4,622 42 Member bank reserves with Federal Reserve Banks...................................... 34,587 31,602 30,381 29,102 27,847 32,628 23,848 26,692 29,936 33,208 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. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May? June All member banks Reserves 1 At Federal Reserve Banks................. 27,057 28,701 29,853 31,158 31,935 30,485 30,399 30,675 30,208 29,866 2 Currency and coin............................. 9,351 9,654 9,794 10,330 11,093 10,074 9,776 9,737 10,044 10,157 3 Total held i.......................................... 36,471 38,434 39,728 41,572 43,167 40,703 40,316 40,546 40,382 40,149 36,297 38,222 39,423 41,447 42,865 40,494 40,059 40,548 40,095 39,873 5 Excess1............................................ 174 212 305 125 302 209 257 -2 287 276 Borrowings at Federal Reserve Banks2 6 Total.................................................... 558 1,261 722 874 994 973 999 897 1,777 1,395 7 Seasonal.............................................. 54 221 185 134 112 114 121 134 173 190 Large banks in New York City 8 Reserves held...................................... 6,244 6,428 6,682 7,120 7,808 6,995 6,892 6,804 6,658 6,303 6,279 6,349 6,658 7,243 7,690 6,976 6,845 6,837 6,544 6,415 -35 79 24 -123 118 19 47 -33 114 -112 48 157 48 99 117 45 61 150 78 Large banks in Chicago 1,593 1,672 1,791 1,907 2,011 1,824 1,822 1,801 1,730 1,712 1,613 1,649 1,765 1,900 2,010 1,823 1,809 1,824 1,712 1,697 -20 23 26 7 1 1 13 -23 18 15 26 14 4 10 23 10 26 18 60 64 Other large banks 16 Reserves held...................................... 13,993 14,862 15,547 16,446 16,942 16,055 15,844 15,948 15,926 15,883 17 Required.......................................... 13,931 14,867 15,447 16,342 16,923 16,018 15,802 16,014 15,893 15,869 62 -5 100 104 19 37 42 -66 33 14 19 Borrowings2........................................ 243 408 194 276 269 275 215 271 721 589 All other banks 14,641 15,472 15,708 16,099 16,406 15,829 15,758 15,993 16,068 16,017 14,474 15,357 15,553 15,962 16,242 15,677 15,603 15,873 15,946 15,892 22 Excess.............................................. 167 115 155 137 164 152 155 120 122 125 241 682 476 489 585 688 713 547 846 664 Weekly averages of daily figures for weeks ending 1979 Apr. 25 May 2 May 9 May 16 May 23 May 30 June 6 June 13 June 20^ June 27p All member banks Reserves 24 At Federal Reserve Banks................. 31,386 31,714 29,918 30,165 30,133 29,663 29,383 28,831 30,566 30,012 9,309 9,963 10,537 10,315 9,354 9,979 10,153 10,366 9,891 10,101 26 Total held1.......................................... 40,829 41,811 40,588 40,607 39,613 39,771 39,665 39,327 40,580 40,238 40,716 41,661 40,514 40,350 39,596 39,588 39,305 39,249 40,456 40,014 28 Excess1.................................................... 113 150 74 257 17 183 360 78 124 224 Borrowings at Federal Reserve Banks'2- 29 Total.................................................... 991 1,217 1,488 1,759 1,703 2,327 1,340 1,299 1,324 1,587 141 163 161 162 169 198 193 181 186 200 Large banks in New York City 6,664 6,885 6,605 6,712 6,413 6,405 6,378 6,205 6,617 6,236 6,710 6,836 6,634 6,686 6,447 6,354 6,359 6,220 6,667 6,301 -46 49 -29 26 -34 51 19 -15 -50 -65 11 99 89 154 54 344 62 0 126 59 Large banks in Chicago 1,727 1,825 1,701 1,762 1,654 1,708 1,735 1,782 1,725 1,591 1,732 1,819 1,707 1,757 1,667 1,693 1,674 1,805 1,690 1,600 -5 6 -6 5 -13 15 61 -23 35 -9 0 9 132 0 36 95 0 41 71 105 Other large banks 16,189 16,564 16,092 16,092 15,638 15,655 15,651 15,598 16,071 15,954 16,122 16,584 16,092 16,029 15,630 15,672 15,558 15,625 16,107 15,997 67 -20 0 63 8 -17 93 -27 -36 -43 390 390 564 763 803 844 509 663 530 679 All other banks 16,249 16,537 16,190 16,041 15,908 16,003 15,901 15,742 16,060 16,243 16,152 16,422 16,081 15,878 15,852 15,869 15,714 15,599 15,992 16,116 97 115 109 163 56 134 187 143 68 127 590 719 703 842 810 1,044 769 595 744 597 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 □ July 1979 1.13 FEDERAL FUNDS TRANSACTIONS Money Market Banks Millions of dollars, except as noted 1979, week ending Wednesday Type May 2 May 9 May 16 May 23 May 30 June 6 June 13 June 20 June 27 Total, 46 Banks Basic reserve position 1 Excess reserves1................................. 39 -10 35 37 31 132 -55 -10 53 Less: 2 Borrowings at Federal Reserve Banks.............................................. 194 309 338 411 696 249 287 214 356 3 Net interbank federal funds transactions.................................... 16,045 17,799 16,958 17,047 15,474 19,113 21,118 20,078 17,069 Equals: Net surplus, or deficit (—) 4 Amount.............................................. -16,201 -18,117 -17,261 -17,421 -16,138 -19,231 -21,460 -20,302 -17,372 5 Percent of average required reserves........................................... 92.1 107.1 101.1 105.8 98.0 117.3 130.1 119.2 105.2 Interbank federal funds transactions Gross transactions 6 Purchases........................................ 23,662 24,622 23,598 23,212 23,585 27,054 28,832 28,818 26,009 7 Sales................................................ 7,616 6,824 6,640 6,166 8,111 7,941 7,714 8,740 8,941 8 Two-way transactions2..................... 5,854 5,645 5,285 5,224 5,824 6,549 5,363 5,729 5,584 Net transactions 9 Purchases of net buying banks.... 17,808 18,977 18,312 17,988 17,761 20,505 23,469 23,089 20,425 10 Sales of net selling banks.............. 1,762 1,178 1,354 942 2,287 1,391 2,351 3,011 3,356 Related transactions with U.S. government securities dealers 11 Loans to dealers 3....................... 3,832 4,216 3,827 4,001 3,591 4,407 4,053 4,144 2,630 12 Borrowing from dealers4.......... 1,808 2,179 2,428 1,776 1,870 1,844 1,949 1,770 2,078 13 Net loans.................................... 2,023 2,037 1,399 2,226 1,722 2,563 2,103 2,374 552 8 Banks in New York City Basic reserve position 14 Excess reserves1................................. 35 -14 18 -28 51 21 -18 23 Less: 15 Borrowings at Federal Reserve Banks.............................................. 14 79 54 344 62 112 59 16 Net interbank federal funds transactions.................................... 3,130 3,284 3,340 3,102 2,874 3,794 6,053 6,112 4,804 Equals: Net surplus, or deficit (—) 17 Amount.............................................. -3,095 -3,312 -3,401 -3,183 -3,167 -3,834 -6,046 -6,242 -4,839 18 Percent of average required reserves........................................... 50.1 55.3 56.3 54.9 55.3 66.8 108.2 104,0 85.5 Interbank federal funds transactions Gross transactions 19 Purchases........................................ 4,527 4,668 4,688 4,174 4,521 5,250 6,824 6,979 5,788 20 Sales................................................ 1.398 1,384 1.348 1,072 1,647 1.456 771 867 984 21 Two-way transactions2..................... 1.398 1,328 1.348 1,065 1,361 1.456 771 867 984 Net transactions 22 Purchases of net buying banks---- 3,129 3,340 3,341 3,109 3,160 3,794 6,053 6,112 4,804 23 Sales of net selling banks.............. 56 8 286 Related transactions with U.S. government securities dealers 24 Loans to dealers 3....................... 1,990 2,180 1,827 2,027 1,387 2,073 2,188 2,677 1,465 25 Borrowing from dealers4.......... 611 916 895 610 541 579 612 752 739 26 Net loans.................................... 1,380 1,264 932 1,418 846 1,494 1,576 1,925 725 38 Banks Outside New York City Basic reserve position 27 Excess reserves1....................... 17 65 -19 110 -62 30 Less: 28 Borrowings at Federal Reserve Banks.................................... 194 295 259 357 352 187 287 101 298 29 Net interbank federal funds transactions.......................... 12,916 14,515 13,618 13,945 12,600 15,320 15,065 13,966 12,265 Equals: Net surplus, or deficit ( — 30 Amount.................................... -13,106 -14,805 -13,859 -14,238 -12,971 -15,397 -15,414 -14,060 -12,533 31 Percent of average required reserves................................. 114.8 135.6 125.6 133.4 120.8 144.4 141.3 127.5 115.5 Interbank federal funds transactions Gross transactions 32 Purchases........................................ 19,134 19,955 18,909 19,039 19,064 21,805 22,008 21,839 20,221 33 Sales................................................ 6,219 5,440 5,292 5,093 6,464 6,485 6,943 7,873 7,957 34 Two-way transactions2..................... 4,456 4,317 3,938 4,159 4,463 5,094 4,592 4,862 4,601 Net transactions 35 Purchases of net buying banks.... 14,678 15,637 14,972 14,879 14,601 16,711 17,416 16,978 15,621 36 Sales of net selling banks............. 1,762 1,122 1,354 934 2,001 1,391 2,351 3,011 3,356 Related transactions with U.S. government securities dealers 37 Loans to dealers3......................... 1,841 2,036 2,001 1,974 2,205 2,334 1,865 1,467 1,165 38 Borrowing from dealers4.............. 1,197 1,263 1,533 1,166 1,329 1,266 1,338 1,018 1,339 39 Net loans............................................. 644 773 467 808 876 1,069 527 449 -174 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Funds A7 1.13 Continued 1979, week ending Wednesday Type May 2 May 9 May 16 May 23 May 30 June 6 June 13 June 20 June 27 5 Banks in City of Chicago Basic reserve position 40 Excess reserves1................................... -1 3 26 5 49 -7 3 15 Less: 41 Borrowings at Federal Reserve Banks................................................ 126 36 91 41 64 102 42 Net interbank federal funds transactions...................................... 5,120 5,741 5,732 5,223 6,112 7,567 8,133 7,232 6,026 Equals: Net surplus, or deficit (—).. -5,715 -5,867 -5,729 -5,232 -6,198 -7,518 -8,181 -7,293 - 6,112 44 Percent of average required reserves............................................. 336.1 368.9 349.4 336.5 392.3 477.8 483.6 462.6 410.4 Interbank federal funds transactions Gross transactions 45 Purchases.......................................... 6,992 6,951 6,988 6,544 7,378 8,890 9,219 8,469 7,581 46 Sales.................................................. 1,272 1,211 1,256 1,321 1,266 1,323 1,086 1,237 1,555 47 Two-way transactions2....................... 1,272 1,211 1,256 1,321 1,266 1,322 1,086 1,237 1,555 Net transactions 48 Purchases of net buying banks....... 5,720 5,741 5,732 5,222 6,112 7,567 8,133 7,232 6,026 49 Sales of net selling banks................ Related transactions with U.S. government securities dealers 50 Loans to dealers 3................................ 337 408 431 446 621 626 430 320 126 51 Borrowing from dealers4.................... 12 15 2 49 75 98 52 Net loans.............................................. 326 408 416 446 621 625 381 246 29 33 Other Banks Basic reserve position 53 Excess reserves1................................... -1 5 14 38 -24 61 -54 4 14 Less: 54 Borrowings at Federal Reserve Banks................................................ 194 169 259 321 260 187 246 37 196 55 Net interbank federal funds transactions...................................... 7,196 8,774 7,886 8,723 6,488 7,753 6,932 6,734 6,239 Equals: Net surplus, or deficit (—) 56 Amount................................................ -7,391 -8,938 -8,130 -9,006 -6,773 -7,879 -7,233 -6,767 -6,421 57 Percent of average required reserves............................................. 76.1 95.8 86.6 98.8 73.9 86.7 78.5 71.6 68.6 Interbank federal funds transactions Gross transactions 58 Purchases.......................................... 12,143 13,003 11,922 12,495 11,686 12,915 12,789 13,370 12,640 59 Sales.................................................. 4,947 4,229 4,036 3,772 5,198 5,126 5,857 6,636 6,401 60 Two-way transactions2....................... 3,184 3,107 2,682 2,838 3,197 3,771 3,506 3,625 3,045 Net transactions 61 Purchases of net buying banks....... 8,959 9,897 9,240 9,657 8,489 9,144 9,283 9,746 9,595 62 Sales of net selling banks................ 1,762 1,122 1,354 934 2,001 1,391 2,351 3,011 3,356 Related transactions with U.S. government securities dealers 63 Loans to dealers 3................................ 1,504 1,628 1,570 1,528 1,584 1,708 1,435 1,146 1,039 64 Borrowing from dealers4.................... 1,186 1,263 1,518 1,166 1,329 1,264 1,288 943 1,241 65 Net loans.............................................. 318 365 51 362 255 444 147 203 -202 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 □ July 1979 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Loans to member banks Loans to all others Under sec. 10(b)2 under sec. 13, last par.4 Federal Reserve Under secs. 13 and 13a1 Bank Regular rate Special rate 3 Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 6/30/79 date rate 6/30/79 date rate 6/30/79 date rate 6/30/79 date rate Boston.......... 9% 11/2/78 8% 10 11/2/78 10% 11/2/78 9% 12% 11/2/78 11% New York... 9% 11/1/78 8 Vi 10 11/1/78 10% 11/1/78 9% 12% 11/1/78 11% Philadelphia.. 9% 11/2/78 8V2 10 11/2/78 10Vi 11/2/78 9% 12% 11/2/78 11% Cleveland---- 9% 11/2/78 8V2 10 11/2/78 10 % 11/2/78 9% 12% 11/2/78 11% Richmond... 9% 11/2/78 8V2 10 11/2/78 10% 11/2/78 9% 12% 11/2/78 11% Atlanta.......... 9% 11/3/78 8 Vi 10 11/3/78 10% 11/3/78 9% 12% 11/3/78 11% Chicago........ 9% 11/2/78 8 Vi 10 11/2/78 10% 11/2/78 9% 12% 11/2/78 11% St. Louis....... 9% 11/2/78 8V2 10 11/2/78 lovi 11/2/78 9% 12% 11/2/78 11% Minneapolis.. 9 Vi 11/1/78 8 Vi 10 11/1/78 lOVi 11/1/78 9% 12% 11/1/78 11% Kansas City.. 9 % 11/2/78 8 Vi 10 11/2/78 10% 11/2/78 9% 12% 11/2/78 11% Dallas........... 9 Vi 11/2/78 8V2 10 11/2/78 10% 11/2/78 9% 12% 11/2/78 11% San Francisco 91/2 11/2/78 8V2 10 11/2/78 10% 11/2/78 9% 12 Vt 11/2/78 11% Range of rates in recent years5 Range F.R. Range F.R. Range F.R. Effective date (or level)— Bank Effective date (or level)— Bank Effective date (or level)— Bank All F.R. of All F.R. of All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1970, 5% 5% 1973—May 4.................. 534 534 1976—Jan. 19.................. 5%-6 5% 11.................. 534-6 6 23.................. 5% 5% 1971—Jan. 8............ 5V4-5% 5 Va 6 6 Nov. 22.................. 514-5% 514 15............ 5% 5 Va June 11.................. 6-6% 6% 26.................. 514 514 19............ 5-5 V4 5 Va 15.................. 6% 6% 22............ 5-5% 5 July 2.................. 7 7 1977—Aug. 30.................. 514-534 514 29............ 5 5 Aug. 14.................. 7-7 % 7% 31.................. 514-534 534 Feb. 13............ 434-5 5 23.................. 7% 7% Sept. 2................. 5*4 534 19............ 4Va 434 Oct. 26................. 6 6 July 16............ 4Va-5 5 1974—Apr. 25.................. 7%-8 8 2 3 5 5 8 8 1978—Jan. 9................. 6-6% 6% Nov, 11............ 43^-5 5 Dec. 9.................. 734-8 734 20................. 6% 6% Dec. 1 1 9 3. .. . . . . . . . . . . . . . . . . .. .. . 4% 43 -4 Va34 4 A 3 V Va a 16.................. 734 734 May 1 1 2 1................. 6% 7 -7 7 7 17............ 4%-4% 4% 1975—Jan. 6.................. 714-734 734 July 3................. 7-714 714 2 4 4% 4% 10................ 714-734 714 10................. 714 714 24.................. 714 7V4 Aug. 21................. 734 734 1973—Jan. 15.......... 5 5 Feb. 5.................. 634-714 634 Sept. 22................. 8 8 Feb. 26.......... 5-5% 5% 7.................. 634 634 Oct. 16................. 8-8% 8% Mar. 2.......... 5% 5% Mar. 10.................. 6i4-634 614 20................. 8% 8% Apr. 23.......... 5%-53^ 5% 14.................. 614 614 Nov. 1................. 8%-9% 9% May 16.................. 6-614 6 3................. 9% 9% 23.................. 6 6 In effect June 30, 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 and 1941-1970; Annual Regulation A. Statistical Digest, 1971-1975, 1972-1976, and 1973-1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.15 MEMBER BANK RESERVE REQUIREMENTS' Percent of deposits Requirements in effect Previous requirements June 30, 1979 Type of deposit, and deposit interval in millions of dollars Percent Effective date Percent Effective date Net demand2 0-2...................................................................................................... 7 12/30/76 m 2/13/75 2-10.................................................................................................... m 12/30/76 10 2/13/75 10-100................................................................................................ UVa 12/30/76 12 2/13/75 100-400............................................................................................... ny4 12/30/76 13 2/13/75 Over 400............................................................................................. 16V4 12/30/76 16Vi 2/13/75 Time and savings2.3.4 Savings................................................................................................ 3 3/16/67 3V4 3/2/67 Times 0-5, by maturity 30-179 days................................................................................ 3 3/16/67 3Vi 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 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 □ July 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 June 30, 1979 Previous maximum In effect June 30, 1979 Previous maximum Percent Effective Percent Effective Percent Effective Percent Effective date date date date 2 1 N Sa e v g i o n t g ia s b .. l . e .. . o .. r .. d .. e .. r . . o ... f . . w ... i . t . h ... d .. r . a .. w ... a .. l ............... 5 7/1/73 41/2 1/21/70 5% (7) 5 (8) accounts1........................................... 5 1/1/74 (9) 5 1/1/74 (9) 3 Money market time deposits of less than $100,0002............................................... (10) (10) (10) (10) (10) (iO) (10) (iO) Time (multiple- and single-maturity unless otherwise indicated)3 30-89 days 4 5 S M in u g lt l i e p - l m e- a m tu a r t i u ty r . i . t . y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jr 5 7/1/73 / I 4 5 * 9 1 / / 2 2 6 1 / / 6 7 6 0 } («) (9) 90 days to 1 year 7 6 S M in u g lt l i e p - l m e- a m tu a r t i u ty ri .. t . y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . } 5H 7/1/73 * { 7 9 / / 2 2 0 6 / / 6 6 6 6 } <5% (7) 5% 1/21/70 9 8 2 1 t t o o 2 IY y j. e y ar e s a 4 r . s . 4 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... :} 6 7/1/73 J \ 53/4 1 1 / / 2 21 1/ / 7 7 0 0 } 6Vi (7) J 5V4 1 1 / / 2 2 1 1 / / 7 7 0 0 10 2Vi to 4 years4........................................ 61/2 7/1/73 53/4 1/21/70 m (7) ; 1 1/21/70 11 4 to 6 years 5............................................ 71/4 11/1/73 O1) m 11/1/73 12 6 to 8 years5............................................ m 12/23/74 m 11/1/73 7% 12/23/74 m 11/1/73 13 8 years or more 5..................................... 7y4 6/1/78 (10) 8 6/1/78 (10) 14 Issued to governmental units (all maturities)........................................ 8 6/1/78 m 12/23/74 8 6/1/78 m 12/23/74 15 Individual retirement accounts and Keogh (H.R. 10) plans®................. 8 6/1/78 m 7/6/77 8 6/1/78 m 7/6/77 1. For authorized states only. Federally insured commercial banks, Beginning Mar. 15, 1979, the y* percentage point interest differential savings and loan associations, cooperative banks, and mutual savings is removed when the 6-month Treasury bill rate is 9 percent or more. banks in Massachusetts and New Hampshire were first permitted to offer The full differential is in effect when the 6-month bill rate is 8% percent negotiable order of withdrawal (NOW) accounts on Jan. 1, 1974. or less. Thrift institutions may pay a maximum 9 percent when the 6-month Authorization to issue NOW accounts was extended to similar institutions bill rate is between 8% and 9 percent. Also effective March 15, 1979, throughout New England on Feb. 27, 1976, and in New York State on interest compounding was prohibited on money market time deposit- Nov. 10, 1978. at all offering institutions. For both commercial banks and thrift institu­ 2. Must have a maturity of exactly 26 weeks and a minimum denomina­ tions, the maximum allowable rates in June were as follows: June 7,9.425; tion of $10,000, and must be nonnegotiable. June 14, 9.047; June 21, 8.873 (thrifts, 9.0); June 28, 8.903 (thrifts, 9.0). 3. For exceptions with respect to certain foreign time deposits see the 10. No separate account category. Federal Reserve Bulletin for October 1962 (p. 1279), August 1965 (p. 11. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for 1094), and February 1968 (p. 167). certificates maturing in 4 years or more with minimum denominations 4. A minimum of $1,000 is required for savings and loan associations, of $1,000; however, the amount of such certificates that an institution except in areas where mutual savings banks permit lower minimum de­ could issue was limited to 5 percent of its total time and savings deposits. nominations. This restriction was removed for deposits maturing in less Sales in excess of that amount, as well as certificates of less than $1,000, than 1 year, effective Nov. 1, 1973. were limited to the 6Vi percent ceiling on time deposits maturing in 2Vi 5. $1,000 minimum except for deposits representing funds contributed years or more. to an Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan es­ Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing tablished pursuant to the Internal Revenue Code. The $1,000 minimum in 4 years or more with minimum denominations of $1,000. There is no requirement was removed for such accounts in December 1975 and No­ limitation on the amount of these certificates that banks can issue. vember 1976, respectively. 6. 3-year minimum maturity. Note. Maximum rates that can be paid by federally insured commer­ 7. July 1, 1973, for mutual savings bank; July 6, 1973 for savings and cial banks, mutual savings banks, and savings and loan associations are loan associations. established by the Board of Governors of the Federal Reserve System, 8. Oct. 1, 1966, for mutual savings banks; Jan. 21, 1970, for savings and the Board of Directors of the Federal Deposit Insurance Corporation, loan associations. and the Federal Home Loan Bank Board under the provisions of 12 9. Commercial banks, savings and loan associations, and mutual savings CFR 217, 329, and 526, respectively. The maximum rates on time de­ banks were authorized to offer money market time deposits effective posits in denominations of $100,000 or more were suspended in mid- June 1, 1978. The ceiling rate for commercial banks is the discount rate 1973. For information regarding previous interest rate ceilings on all on most recently issued 6-month U.S. Treasury bills. Until Mar. 15, types of accounts, see earlier issues of the Federal Reserve Bulletin, 1979, the ceiling rate for savings and loan associations and mutual savings the Federal Home Loan Bank Board Journal, and the Annual Report banks was Vi percentage point higher than the rate for commercial banks. of the Federal Deposit Insurance Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments All 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1978 1979 1976 1977 1978 Type of transaction Nov. Dec. Jan. Feb. Mar. Apr. May U.S. Government Securities Outright transactions (excluding matched salepurchase transactions) Treasury bills 1 Gross purchases........................................................... 14,343 13,738 16,628 2,039 0 0 0 2,012 22,361 0 2 Gross sales...................................................................... 8,462 7,241 13,725 3,587 2,751 3,758 228 475 100 251 3 Redemptions.................................................................. 2 5,017 2,136 2,033 603 0 500 400 400 2 1,240 200 Others within 1 year1 A Gross purchases........................................................... 472 3,017 1,184 139 0 0 48 2,600 0 0 5 Gross sales...................................................................... 0 0 0 0 0 0 0 0 0 0 6 Exchange, or maturity shift...................................... 792 4,499 -5,170 -778 705 -673 -30 724 439 4,660 7 Redemptions.................................................................. 0 2,500 0 0 0 0 0 0 2 3,240 0 1 to 5 years 8 Gross purchases........................................................... 2 3,202 2,833 4,188 628 0 0 426 0 2 640 0 9 Gross sales...................................................................... 177 0 0 0 0 0 0 0 0 0 10 Exchange, or maturity shift...................................... -2,588 -6,649 -178 -657 -705 673 2,205 -724 -439 -5,209 5 to 10 years 11 Gross purchases........................................................... 1,048 758 1,526 163 0 0 134 0 0 0 12 Gross sales...................................................................... 0 0 0 0 0 0 0 0 0 0 13 Exchange, or maturity shift...................................... 1,572 584 2,803 835 0 0 -2,975 0 0 350 Over 10 years 14 Gross purchases............................................................ 642 553 1,063 108 0 0 93 0 0 0 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 0 800 0 0 200 All maturities1 17 Gross purchases........................................................... 2 19,707 20,898 24,591 3,075 0 0 700 4,612 23,000 0 18 Gross sales...................................................................... 8,639 7,241 13,725 3,587 2,751 3,758 228 475 100 251 19 Redemptions.................................................................. 25,017 4,636 2,033 603 0 500 400 400 2 4,480 200 Matched sale-purchase transactions 20 Gross sales................................................................. 196,078 425,214 511,126 40,785 52,661 64,691 56,291 61,669 62,362 54,343 21 Gross purchases....................................................... 196,579 423,841 510,854 40,546 51,586 60,750 58,426 63,707 61,968 53,692 Repurchase agreements 22 Gross purchases....................................................... 232,891 178,683 151,618 7,719 8,133 3,117 6,931 11,817 5,784 2,188 23 Gross sales................................................................. 230,355 180,535 152,436 8,383 7,049 4,201 6,931 10,137 6,163 3,488 24 Net change in U.S. government securities......... 9,087 5,798 7,743 -2,017 -2,743 -9,283 2,207 7,454 -2,352 -2,403 Federal Agency Obligations Outright transactions 25 Gross purchases....................................................... 891 1,433 301 0 0 0 0 0 0 0 2 2 6 7 R G e r d os e s m s p a t l i e o s n ... s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 0 223 0 2 1 3 7 5 3 39 0 0 3 37 1 9 0 20 * 23 0 0 * 40 0 Repurchase agreements 28 Gross purchases....................................................... 10,520 13,811 40,567 2,544 4,307 713 1,152 2,851 1,173 1,149 29 Gross sales................................................................. 10,360 13,638 40,885 2,670 4,174 846 1,152 2,482 1,392 1,298 30 Net change in federal agency obligations........... 882 1,383 -426 -165 130 -522 -20 345 -219 -189 Bankers Acceptances 31 Outright transactions, net......................................... -545 -196 0 0 0 0 0 0 0 0 32 Repurchase agreements, net..................................... 410 159 -366 -236 587 -587 0 204 48 -252 33 Net change in bankers acceptances....................... -135 -37 -366 -236 587 -587 0 204 48 -252 34 Total net change in System Open Market Account........................................................................ 9,833 7,143 6,951 -2,419 -2,026 -10,392 2,187 8,003 -2,524 -2,844 1. Both gross purchases and redemptions include special certificates bills. Each of these transactions is treated in the table as both a purchase created when the Treasury borrows directly from the Federal Reserve, and a redemption. as follows (millions of dollars): Sept. 1977, 2,500; Mar. 1979, 2,600. 2. In 1976, the System acquired $189 million of 2-year Treasury notes Note. Sales, redemptions, and negative figures reduce holdings of in exchange for maturing bills. In April 1979, the System acquired $640 the System Open Market Account; all other figures increase such holdings. million of 2-day cash management bills in exchange for maturing 2-year Details may not add to totals because of rounding. notes. New 2-year notes were later obtained in exchange for the maturing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Financial Statistics □ July 1979 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1979 1979 May 30 June 6 June 13 June 20p June 21 v Apr. May JuneP Consolidated condition statement Assets 1 Gold certificate account....................................... 11,354 11,325 11,323 11,323 11,323 11,416 11,354 11,323 2 Special drawing rights certificate account......... 1,800 1,800 1,800 1,800 1,800 1,300 1,800 1,800 3 Coin....................................................................... 412 396 397 385 368 405 411 371 Loans 4 Member bank borrowings................................. 3,468 1,583 981 1,929 2,922 1.256 1,330 1,558 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..................... 319 43 0 216 840 252 0 1,400 Federal agency obligations 8 Bought outright.................................................... 7,423 7,423 7,390 7,761 7,761 7,464 7,423 7,761 9 Held under repurchase agreements..................... 151 105 0 17 997 149 0 826 U.S. government securities Bought outright 10 Bills.................................................................... 38,852 32,740 35,121 35,868 38,731 39,268 38,166 38,370 11 Certificates—Special......................................... 0 0 0 0 0 0 0 0 12 Other........................................... 0 0 0 0 0 0 0 0 13 Notes................................................................. 54,462 54,462 54,462 54,505 54,505 54,662 54,462 54,505 14 Bonds................................................................. 13,557 13,557 13,557 13,557 13,557 13,357 13,557 13,557 15 Total i................................................................. 106,871 100,759 103,140 103,930 106,793 107,287 106,185 106,432 16 Held under repurchase agreements..................... 830 1,004 0 1,192 2,548 1,301 0 3,305 17 Total U.S. government securities....................... 107,701 101,763 103,140 105,122 109,341 108,588 106,185 109,737 18 Total loans and securities..................................... 119,062 110,917 111,511 115,045 121,861 117,709 114,938 121,282 19 Cash items in process of collection..................... 15,370 13,984 15,097 14,670 12,699 13,266 14,910 10,462 20 Bank premises...................................................... 395 396 397 399 398 397 395 397 Other assets 21 Denominated in foreign currencies2................... 3,680 3,643 3,643 3,651 3,095 3,745 3,664 2,942 22 All other................................................................ 2,268 2,542 2,443 2,622 2,542 2,963 2,218 2,427 23 Total assets............................................................ 154,341 145,003 146,611 149,895 154,086 151,201 149,690 151,004 Liabilities 24 Federal Reserve notes............................................ 103,851 104,421 104,701 104,469 104,803 101,767 103,748 104,794 Deposits 25 Member bank reserves......................................... 32,628 23,848 26,692 29,936 33,208 34,587 31,602 30,381 26 U.S. Treasury—General account....................... 2,443 4,762 3,280 2,899 3,597 3,100 1,974 3,290 27 Foreign.................................................................. 334 295 208 294 270 388 407 326 28 Other..................................................................... 735 532 595 685 573 813 852 813 29 Total deposits........................................................ 36,140 29,437 30,775 33,814 37,648 38,888 34,835 34,810 30 Deferred availability cash items......................... 9,680 7,151 6,775 7,266 7,013 5,905 6,392 6,564 31 Other liabilities and accrued dividends3............ 1,719 1,601 1,792 1,595 1,699 1,663 1,673 1,846 32 Total liabilities...................................................... 151,390 142,610 144,043 147,144 151,163 148,223 146,648 148,014 Capital Accounts 33 Capital paid in...................................................... 1,123 1,126 1,128 1,126 1,126 1,117 1,124 1,126 34 Surplus.................................................................. 1,078 1,078 1,078 1,078 1,078 1,078 1,078 1,078 35 Other capital accounts........................................ 750 189 362 547 719 783 840 786 36 Total liabilities and capital accounts................... 154,341 145,003 146,611 149,895 154,086 151,201 149,690 151,004 37 Memo: Marketable U.S. government securities held in custody for foreign and international account............................................................. 75,972 78,436 78,196 75,802 77,594 84,423 76,123 78,140 Federal Reserve note statement 38 Federal Reserve notes outstanding (issued to Bank)............................................................. 116,521 116,975 117,336 117,740 118,127 115,604 116,615 118,148 Collateral held against notes outstanding 39 Gold certificate account....................................... 11,354 11,325 11,323 11,323 11,323 11,416 11,354 11,323 40 Special Drawing Rights certificate account........ 1,800 1,800 1,800 1,800 1,800 1,300 1,800 1,800 41 Eligible paper....................................................... 2,585 1,417 896 1,370 1,908 986 1,182 1,116 42 U.S. government securities................................. 100,782 102,433 103,317 103,247 103,096 101,902 102,279 103,909 43 Total collateral...................................................... 116,521 116,975 117,336 117,740 118,127 115,604 116,615 118,148 1. Includes securities loaned—fully guaranteed by U.S. government 2. Beginning December 29, 1978, such assets are revalued monthly securities pledged with Federal Reserve Banks—and excludes (if any) at market exchange rates. securities sold and scheduled to be bought back under matched sale- 3. Includes exchange-translation account reflecting, beginning December purchase transactions. 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 May 30 June 6 June 13 June 20 June 27 April 30 May 31 June 30 3,468 1,582 981 1,929 2,922 1,255 1,333 1,558 3,439 1,479 887 1,907 2,898 1,211 1,261 1,469 29 103 94 22 24 44 72 89 4 91 days to 1 year...................................................... 0 0 0 0 0 0 0 0 5 Acceptances............................................................... 319 43 0 216 840 252 0 400 319 43 0 216 840 252 0 400 0 0 0 0 0 0 0 0 8 91 days to 1 year...................................................... 0 0 0 0 0 0 0 0 9 U.S. government securities...................................... 107,701 101,763 103,140 105,122 109,341 108,588 106,185 106,737 10 Within 15 days1....................................................... 3,601 3,071 1,751 4,308 5,677 5,284 597 5,748 19,267 14,413 17,035 17,215 19,089 18,905 19,267 19,434 32,268 31,652 31,727 30,972 31,948 27,113 33,694 31,928 13 Over 1 year to 5 years............................................. 28,572 28,634 28,634 28,634 28,634 33,843 28,634 28,634 14 Over 5 years to 10 years.......................................... 12,225 12,225 12,225 12,225 12,225 11,875 12,225 12,225 11,768 11,768 11,768 11,768 11,768 11,568 11,768 11,768 16 Federal agency obligations....................................... 7,574 7,528 7,390 7,778 8,758 7,613 7,423 8,587 17 Within 15 days*....................................................... 385 288 0 75 1,093 211 234 922 18 16 days to 90 days................................................... 357 417 485 439 401 604 357 401 19 91 days to 1 year...................................................... 793 784 818 915 915 945 793 915 20 Over 1 year to 5 years............................................. 3,776 3,776 3,805 4,064 4,064 3,507 3,776 4,064 21 Over 5 years to 10 years.......................................... 1,488 1,488 1,507 1,510 1,510 1,571 1,488 1,510 775 775 775 775 775 775 775 775 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. 1979 Bank group, or type 1976 1977 1978 of customer Jan. Feb. Mar. Apr. May Debits to demand deposits 2 (seasonally adjusted) 1 All commercial banks............... 29,180.4 34,322.8 40,300.3 44,598.7 43,878.3 44,920.4 46,612.2 47,545.4 2 Major New York City banks.. 11,467.2 13,860.6 15,008.7 16,345.5 15,432.8 15,644.9 16,898.7 16,960.3 17,713.2 20,462.2 25,291.6 28,253.1 28,445.5 29,275.5 29,713.5 30,585.2 Debits to savings deposits 3 (not seasonally adjusted) 4 All customers............................. 174.0 418.1 583.5 448.4 598.3 698.0 764.4 5 Business 1................................... 21.7 56.7 73.7 54.1 76.1 71.7 69.4 6 Others......................................... 152.3 361.4 509.8 394.3 522.2 626.4 695.0 Demand deposit turnover 2 (seasonally adjusted) 7 All commercial banks............... 116.8 129.2 139.4 151.2 150.4 154.4 156.8 160.3 8 Major New York City banks.. 411.6 503.0 541.9 584.2 565.1 571.8 618.4 619.1 9 Other banks............................... 79.8 85.9 96.7 105.8 107.6 111.1 110.1 113.6 Savings deposit turnover 3 (not seasonally adjusted) 10 All customers............................. 1.6 1.9 2.7 2.1 2.8 3.2 3.6 11 Business 1................................... 4.1 5.1 6.8 5.3 7.4 7.0 6.8 1.5 1.7 2.5 1.9 2.5 3.0 3.4 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 Support Services, Board of Governors of the Federal Reserve 2. Represents accounts of individuals, partnerships, and corporations, System, Washington, D.C. 20551. Debits and turnover data for savings and of states and political subdivisions. 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 □ July 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 Dec. Jan. P'eb. Mar. Apr. May Seasonally adjusted Measures1 1 M-l...................................................... 295.4 313.8 338.7 361.2 361.2 359.7 358.6 359.0 364.3 364.5 2 M-1 + .................................................. 456.8 517.2 560.6 587.1 587.1 583.2 580.0 r579.5 584.8 583.7 3 M-2...................................................... 664.8 740.6 809.4 875.8 875.8 875.0 876.7 879.5 889.8 893.8 4 M-3...................................................... 1,092.4 1,235.6 1,374.3 1,500.1 1,500.1 1,503.7 1,509.7 1,517.5 rl,530.8 1,536.8 5 M-4...................................................... 745.8 803.0 883.1 972.4 972.4 975.5 978.8 978.5 984.8 984.4 6 M-5...................................................... 1,173.5 1,298.0 1,448.0 1,596.7 1,596.7 1,604.2 1,611.8 1,616.5 rl,625.9 1,627.3 Components 7 Currency.............................................. 73.8 80.8 88.6 97.5 97.5 98.2 98.9 99.4 100.2 100.7 Commercial bank deposits 8 Demand.............................................. 221.7 233.0 250.1 263.7 263.7 261.5 259.7 259.5 264.1 263.8 9 Time and savings............................... 450.3 489.2 544.4 611.2 611.2 615.8 620.2 619.5 620.6 619.9 10 Savings............................................ 160.7 202.1 219.7 223.0 223.0 220.8 218.6 217.7 217.7 216.4 11 Negotiable CDs 2............................. 81.0 62.4 73.7 96.6 96.6 100.5 102.1 99.0 95.0 90.6 12 Other time....................................... 208.6 224.7 251.0 291.5 291.5 294.6 299.5 302.8 307.9 313.0 13 Nonbank thrift institutions 3.............. 427.7 495.0 564.9 624.4 624.4 628.7 633.0 638.0 r641.0 643.0 Not seasonally adjusted Measures1 14 M-l...................................................... 303.9 322.6 348.2 371.3 371.3 365.4 351.9 353.7 367.4 359.1 15 M-l + .................................................. 463.6 524.2 568.0 595.1 595.1 588.2 572.6 575.5 *•590.4 580.2 16 M-2...............;.................................... 670.0 745.8 814.9 881.5 881.5 879.6 871.0 878.2 r896.8 892.1 17 M-3...................................................... 1,095.0 1,238.3 1,377.2 1,502.8 1,502.8 1,506.8 1,502.1 1,517.4 rl,540.8 1,536.2 18 M-4...................................................... 753.5 810.0 890.8 981.0 981.0 980.7 970.6 975.7 989.5 981.1 19 M-5...................................................... 1,178.4 1,302.6 1,453.2 1,602.4 1,602.4 1,607.9 1,601.7 1,614.9 rl,633.5 1,625.2 Components 20 Currency.............................................. 75.1 82.1 90.1 99.1 99.1 97.4 97.6 98.6 99.9 100.6 Commercial bank deposits 21 Demand.............................................. 228.8 240.5 258.1 272.2 272.2 268.0 254.2 255.1 267.5 258.5 22 Member........................................... 162.8 169.4 177.5 183.0 183.0 179.3 169.6 170.4 178.5 171.8 23 Domestic nonmember.. .............. 62.6 67.5 76.2 85.2 85.2 84.6 80.7 80.6 85.1 82.6 24 Time and savings............................... 449.6 487.4 542.6 609.7 609.7 615.3 618.7 622.0 622.1 622.0 25 Savings............................................ 159.1 200.2 217.7 220.9 220.9 219.9 218.0 218.9 220.1 218.2 26 Negotiable CDs 2............................. 83.5 64.3 75.9 99.5 99.5 101.1 99.6 97.5 92.6 88.9 27 Other time....................................... 207.1 222.9 249.0 289.2 289.2 294.3 301.1 305.5 r309.3 314.9 28 Other checkable deposits*.................. 0.7 1.4 2.1 2.9 2.9 2.8 2.8 2.8 2.9 2.9 29 Nonbank thrift institutions 3.............. 424.9 492.5 562.3 621.4 621.4 627.1 631.1 639.2 r644.0 644.1 30 U.S. government deposits (all commercial banks)..................... 4.1 4.4 5.1 10 2 10.2 11.9 8.3 6.5 5.3 8.4 1. Composition of the money stock measures is as follows: of mutual savings banks, savings and loan shares, and credit union shares (nonbank thrift). M-l: Averages of daily figures for (1) demand deposits at commercial M-4: M-? plus large negotiable CDs. banks other than domestic interbank and U.S. government, less cash items M-5: M-3 olus 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-l + : M-l 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 M-2: M-l 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 H.6 (508) 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 and 6. As of Dec. 31, 1978, commercial and industrial loans were reduced federal funds sold to domestic commercial banks. $0.1 billion as a result of reclassifications. 2. Loans sold are those sold outright to a bank’s own foreign branches, 7. As of Dec. 31, 1978, commercial and industrial loans sold outright nonconsolidated nonbank affiliates of the bank, the bank’s holding were increased $0.7 billion as the result of reclassifications, but $0.1 company (if not a bank), and nonconsolidated nonbank subsidiaries of billion of this amount was offset by a balance sheet reduction of $0.1 the holding company. billion as noted above. 3. As of Dec. 31, 1978, total loans and investments were reduced by 8. As of May 1979, as the result of reclassification, total loans and $0.1 billion. Total loans were reduced $1.6 billion, and “Other invest­ investments and total loans were increased by $600 million, and business ments” were increased $1.5 billion largely as the result of reclassifications loans were increased by $400 million. of certain tax-exempt obligations. 4. As of Mar. 31, 1976, reclassification of loans reduced these loans Note. Data are for last Wednesday of month except for June 30 and about $1.2 billion. December 31 call report data. Data revised beginning July 1978 to reflect 5. As of Dec. 31, 1977, reclassification of loans at one large bank adjustments to preliminary December 31, 1978, call report data. reduced these loans about $200 million. 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 1975 1976 1977 Dec. Dec. Dec. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Seasonally adjusted 1 Reserves1.......................................................... 34.67 34.89 36.10 38.38 39.75 41.27 41.48 40.75 40.81 40.65 40.50 2 Nonborrowed.......................................... 34.54 34.84 35.53 37.10 39.05 40.40 40.48 39.78 39.82 39.73 38.79 3 Required.................................................. 34.40 34.61 35.91 38.22 39.53 41.04 41.26 40.54 40.66 40.47 40.36 4 Monetary base2...................................... 106.7 118.4 127.8 137.8 140.0 142.3 143.4 143.3 143.9 144.5 144.9 5 Deposits subject to reserve requirements3 504.2 528.6 568.6 608.9 616.9 616.7 621.1 619.7 616.4 618.6 613.9 6 Time and savings.................................... 336.8 354.1 386.7 418.3 427.5 429.4 433.5 436.1 434.1 432.0 428.7 Demand 7 Private...................................................... 164.5 171.5 178.5 187.2 187.0 185.1 185.6 181.9 180.5 184.7 183.5 8 U.S. government..................................... 2.9 3.0 3.5 3.5 2.3 2.3 1.9 1.8 1.8 1.8 1.7 Not seasonally adjusted 9 Monetary base2.......................................................... 108.3 120.3 129.8 137.5 140.5 144.6 144.4 141.9 142.3 144.2 144.5 10 Deposits subject to reserve requirements3................. 510.9 534.8 575.3 608.4 615.1 624.0 627.1 614.3 614.3 621.1 610.9 11 Time and savings........................................................ 337.2 353.6 386.4 418.5 425.2 429.6 433.8 434.2 434.9 432.3 429.8 Demand 12 Private......................................................................... 170.7 177.9 185.1 186.9 188.0 191.9 191.5 178.2 177.5 186.8 179.2 13 U.S. government........................................................ 3.1 3.3 3.8 3.0 2.0 2.5 1.9 1.8 1.9 2.0 1.8 1. Series reflects actual reserve requirement percentages with no adjust­ 3. 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 Reguation 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. government, less cash items in Jan. 8 and Dec. 30, 1976; and Nov. 2, 1978. In addition, effective Jan. 1, process of collection and demand balances due from domestic commercial 1976, statewide branching in New York was instituted. The subsequent banks. merger of a number of banks raised required reserves because of higher reserve requirements on aggregate deposits at these banks. Note. Back data and estimates of the impact on required reserves 2. Includes total reserves (member bank reserve balances in the current and changes in reserve requirements are shown in table 14 of the Board’s week plus vault cash held two weeks earlier); currency outside the U.S. Annual Statistical Digest, 1971-1975. Treasury, Federal Reserve Banks and the vaults of commercial banks; and vault cash of nonmember banks. 1.23 LOANS AND INVESTMENTS All Commercial Banks Billions of dollars; last Wednesday of month except for June 30 and Dec. 31 1978 1979 1975 1976 1977 Category Dec. 31 Dec. 31 Dec. 31 Dec. 31^ Jan. 31*> Feb. 28p Mar. 28 p Apr. 25 p May 30^ June 30*> Seasonally adjusted 1 Loans and investments1...................... 721.8 785.1 870.6 3977.7 998.6 1,007.7 1,012.6 1,024.3 81,035.2 1,046.5 2 Including loans sold outright2.... 726.2 788.9 875.5 3981.5 1,002.2 1,011.3 1,016.2 1,027.9 81,038.9 1,050.3 Loans 3 Total i.................................................. 496.9 538.9 617.0 3715.4 732.4 738.3 743.4 753.0 8760.2 769.5 4 Including loans sold outright2 .... 501.3 542.7 621.9 3719.2 736.0 741.9 747.0 756.6 8763.9 773.3 5 Commercial and industrial................ 176.2 4179.7 5201.4 6230.9 237.8 240.6 243.5 247.3 8252.2 255.4 6 Including loans sold outright2.... 178.7 4182.1 5204.2 7233.4 240.3 243.1 246.1 249.9 8254.9 258.3 Investments 1 U.S. Treasury..................................... 80.1 98.0 95.6 88.8 89.4 92.1 90.5 91.9 94.6 95.7 8 Other................................................... 144.8 148.2 158.0 3173.5 176.8 177.3 178.7 179.4 180.4 181.3 Not seasonally adjusted 9 Loans and investments1...................... 737.0 801.6 888.9 5998.2 994.6 1,000.0 1,009.5 1,023.0 81,033.8 1,053.8 10 Including loans sold outright2.... 741.4 805.4 893.8 31,002.0 998.2 1,003.6 1,013.1 1,026.6 81,037.5 1,057.6 Loans 11 Total1.................................................. 507.4 550.2 629.9 3730.4 726.0 730.3 737.5 748.1 8759.1 778.7 12 Including loans sold outright2.... 511.8 554.0 634.8 3734.2 729.6 733.9 741.1 751.7 8762.8 782.5 13 Commercial and industrial................ 179.3 4182.9 5205.0 6235.1 235.3 238.6 243.0 248.0 8252.2 258.4 14 Including loans sold outright2.... 181.8 4185.3 5207.8 7237.6 237.8 241.1 245.6 250.7 8254.9 261.3 Investments 15 U.S. Treasury..................................... 84.1 102.5 100.2 93.6 92.2 93.3 93.9 94.4 93.5 92.9 16 Other................................................... 145.5 148.9 158.8 3174.3 176.4 176.5 178.2 180.4 181.2 182.2 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics □ July 1979 1.24 COMMERCIAL BANK ASSETS AND LIABILITIES Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1978 1979 Aug.** Sept.p Oct.P Nov.*> Dec.*’ Jan.» Feb.P Mar.? Apr.*> May*5 June** All Commercial Banks1 1 Loans and investments.......... 986.2 1,002.2 1,010.8 1,029.2 1,051.3 1,041.6 1,048.1 1.059.8 1,074.8 1,090.1 1.102.4 2 Loans, gross........................... 724.3 738.0 746.7 764.3 782.6 773.0 778.3 787.7 799.9 815.4 828.6 3 Interbank............................ 42.9 45.1 46.0 48.8 56.0 47.0 48.1 50.2 51.9 56.3 56.3 4 Commercial and industrial. 222.0 224.5 227.1 230.7 232.8 235.3 238.6 243.0 248.1 252.2 256.7 5 Other................................... 459.4 468.4 473.6 484.8 493.8 490.7 491.6 494.5 500.0 506.9 515.7 6 U.S. Treasury securities........ 95.2 95.6 94.4 93.7 94.0 92 2 93.3 93.9 94.5 93.5 91.9 7 Other securities...................... 166.7 168.5 169.7 171.2 174.7 176.4 176.5 178.2 180.4 181.2 181.9 8 Cash assets, total............................... 140.3 146.8 148.5 150.7 174.7 150.5 158.8 148.1 148.8 169.1 156.0 9 Currency and coin......................... 15.2 15.2 15.1 16.7 17.2 15.3 15.1 15.3 15 7 16.1 16.4 10 Reserves with Federal Reserve Banks 29.7 32.6 34.6 32.6 37.7 29.6 29.4 29.9 33.7 32.7 32.6 11 Balances with depositary institutions 45.9 49.4 47.1 48.0 56.3 50.8 54.1 48.8 47.8 54.3 50.0 12 Cash items in process of collection.. 49.6 49.7 51.7 53.5 63.5 54.7 60.2 54.1 51.6 66.0 57.0 13 Other assets........................................... 68.6 70.5 69.9 74.0 77.9 77.3 76.1 72.9 69.9 66.7 69.1 14 Total assets/total liabilities and capital. 1,195.1 1,219.5 1,229.2 1,254.0 1,303.9 1,269.5 1,283.0 1.280.8 1,293.4 1,325.9 1.327.4 15 Deposits.................. 939.8 956.0 957.2 968.1 1,005.8 979.9 988.2 979.4 984.2 998.7 993.0 16 Demand............... 340.5 351.9 348.7 349.0 382.1 350.8 355.7 343.1 350.8 363.4 356.5 17 Time and savings. 599.3 604.1 608.5 619. 1 623.7 629.1 632.5 635.2 633.3 635.4 636.4 18 Savings............ n.a. n.a. n.a. n.a. n.a. 216.5 216.6 218.6 217.5 217.4 218.3 19 Time................. n.a. n.a. n.a. n.a. n.a. 412.7 415.9 417.7 415.8 418.0 418.2 20 Borrowings............................................ 108.5 112.1 117.8 126.9 136.8 122.3 122.1 125.1 134.2 143.5 147.2 Memo: 21 U.S. Treasury note balances included in borrowing...................................... 7.5 12.4 11.6 3.7 4.7 5.9 4.9 13.2 22 Number of banks.................................. 14,718 14,723 14,712 14,724 14,730 14,701 14,711 14,716 14,731 14,738 14,743 Member Banks 23 Loans and investments.. 698.9 706.9 713.4 724.3 739.5 732.5 736.9 741.2 753.1 761.2 769.0 24 Loans, gross................... 520.3 527.0 533.9 544.6 558.3 549.6 553.2 555.5 565.1 573.7 582.4 25 Interbank.................... n.a. n.a. n.a. n.a. n.a. 30.3 30.6 30.7 31.1 32.9 32.2 26 Other........................... n.a. n.a. n.a. n.a. n.a. 519.3 522.6 524.8 534.0 540.9 550.2 27 U.S. Treasury securities. 65.3 65.4 64.1 63.5 63.6 62.3 63.4 64.1 64.7 63.9 62.3 28 Other securities.............. 113.3 114.5 115.3 116.2 117.6 120.4 120.2 121.5 123.2 123.6 124.3 29 Cash assets, total. 111.2 115.4 118.6 121.3 140.2 119.1 125.4 115.5 119.0 135.6 125.9 30 Currency and coin....................... 11.1 11.1 11.1 12.3 12.7 11.2 11.1 11.2 11.5 11.7 12.0 31 Reserves with Federal Reserve Banks 29.7 32.6 34.6 32.6 37.7 29.6 29.4 29.9 33.7 32.7 32.6 32 Balances with depositary institutions 22.9 24.0 23.2 25.1 28.6 25.8 27.0 22.3 24.1 27.7 26.5 33 Cash items in process of collection.. 47.6 47.7 49.7 51.4 61.2 52.5 57.9 52.1 49.7 63.5 54.8 34 Other assets........................................... 58.4 60.0 59.3 62.9 65.5 65.5 64.2 61.3 58.1 54.8 57.1 35 Total assets/total liabilities and capital. 868.5 882.2 891.2 908.5 945.2 917.1 926.5 918.0 930.1 951.6 952.1 36 Deposits.................. 670.6 679.6 682.5 688.6 716.3 696.6 701.7 687.9 691.8 699.2 693.1 37 Demand............... 256.1 262.3 262.6 262.3 286.8 263.5 267.6 253.2 262.0 270.6 265.0 38 Time and savings. 414.5 417.2 420.0 426.4 429.5 433.1 434.1 434.5 429.8 428.6 428.1 39 Savings............ n.a. n.a. n.a. n.a. n.a. 146.5 146.4 147.7 147.1 145.4 146.0 40 Time................. n.a. n.a. n.a. n.a. n.a. 286.6 287.7 286.8 282.7 283.2 282.1 41 Borrowings............................................ 93.9 97.2 101.4 108. 1 115.9 102.3 104.0 107.1 115.3 123.4 126.3 Memo: 42 U.S. Treasury note balances included in borrowing.................................... 6.3 11.1 9.3 3.0 3.7 4.5 3.8 11.0 43 Number of banks................................ 5,610 5,593 5,585 5,586 5,591 5,556 5,545 5,544 5,542 5,534 5,532 1. Figures partly estimated except on call dates. Member banks: The following numbers of noninsured trust companies Note. Figures include all bank-premises subsidiaries and other signi­ that are members of the Federal Reserve System are excluded from mem­ ficant majority-owned domestic subsidiaries. ber banks in tables 1.24 and 1.25 and are included with noninsured banks Commercial banks: All such banks in the United States, including in table 1.25: 1977—December, 12; 1979—March, 13. member and nonmember banks, stock savings banks, nondeposit trust companies, and U.S. branches of foreign banks. 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 3 560,077 581,143 636,318 672,207 329,971 339,955 372,702 390,630 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 6 129,562 130,726 159,264 157,393 76,072 74,641 92,050 90,728 7 1,003,970 1,040,945 1,129,712 1,172,772 583,304 599,743 651,360 671,166 8 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 and savings 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 75,291 81,137 89,339 98,351 54,421 57,283 63,218 68,948 15 Total capital accounts............................................ 75,061 75,502 79,082 83,074 41,319 43,142 44,994 47,019 16 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 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 23 189,579 195,452 210,442 217,384 231,086 245,748 267,910 284,221 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 and savings 28 2,384 2,134 2,026 2,275 956 988 973 920 29 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 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 1,428 1,081 849 1,082 45,863 47,357 48,662 52,341 38 6,496 8,330 9,458 9,360 27,127 28,497 34,367 32,967 39 26,790 33,390 36,433 42,279 257,877 279,139 304,343 326,501 40 Deposits.................................................................. 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 and savings 44 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 48 275 293 310 317 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 □ July 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 Cash bank balances, items in process........................................ 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 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 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 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 2,743 2,608 482 94 1,863 169 135 30 Other loans, gross......................................................................... 675,915 500,802 79,996 26j172 190,565 204,069 175,113 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 77,974 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 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 35,806 111,674 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 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 41,309 161,599 110,974 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 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 19,689 13,296 427 57 5,242 7,570 6,393 9,642 6,667 179 19 2,563 3,905 2,976 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 30,027 20,406 1,694 851 6,680 11,182 9,621 17,360 14,778 3,545 1,290 6,100 3,844 2,582 68 Total loans and securities, net...................................................... 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 Foreign governments, central banks, etc.................................. 1,805 1,728 1,436 19 211 62 77 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 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 3,494 108 Total liabilities............................................................................ 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 22,380 111 Preferred stock........................................................................... 88 36 5 31 52 1171,28 7C5ommo1n2 ,s8t1o6ck........2..,.6..4..5.................5..7..0.............4..,.0..0..7.............5..,.5...94 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 10,307 651,874 483,316 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 33,454 944,593 687,543 107,028 28,922 250,804 300,789 257,062 123 Federal funds purchased and securities sold under agree- 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 18,820 17,658 10,063 1,477 4,820 1,297 1,162 186,837 152,553 32,654 13,486 66,684 39,728 34,284 160,227 129,667 27,950 11,590 56,383 33,743 30,560 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 □ July 1979 1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of 5750 Million or More on December 31, 1977, Assets and Liabilities Millions of dollars, Wednesday figures 1979 Account May 2 May 9 May 16 May 23 May 30^ June 6p June 13p June 20p June 21 p 1Cash items in process of collection................... 49,126 40,928 46,915 42,330 53,926 43,511 47,096 48,388 47,000 2 Demand deposits due from banks in the United States................................................................. 13.713 13,883 14,424 12,668 17,441 13,636 13,817 15,277 15,793 3 All other cash and due from depositary institutions....................................................... 30,204 29,286 28,789 26,830 31,063 26,179 26,752 29,370 32,523 4 Total loans and securities..................................... 469,315 467,211 468,554 467,149 471,855 479,142 478,885 480,234 477,746 Securities 5 U.S. Treasury securities....................................... 36,048 36,455 37,112 37,280 37,006 39,297 38,821 37,381 35,531 6 Trading account................................................ 4,404 4,822 5,564 5,457 5,342 6,642 6,186 5,552 4,699 7 Investment account, by maturity..................... 31,644 31,632 31,547 31,822 31,664 32,654 32,634 31,829 30,832 8 One year or less............................................ 9,190 9,287 9,157 9,194 9,212 9,554 9,593 9,301 8,574 9 Over one through five years......................... 18,127 18,036 17,940 18,041 17,906 18,674 18,534 18,117 17,908 10 Over five years............................................. 4,327 4,308 4,450 4,587 4,546 4,426 4,507 4,412 4,350 11 Other securities..................................................... 66,711 67,108 66,814 67,020 67,192 67,123 68,180 67,374 68,086 12 Trading account................................................ 3,138 3,455 3,161 3,355 3,090 3,179 3,918 3,359 3,798 13 Investment account........................................... 63,573 63,654 63,652 63,665 64,102 63,944 64,262 64,016 64,288 14 U.S. government agencies............................ 12,172 12,183 12,173 12,173 12,376 12,484 13,000 13,481 13,627 15 States and political subdivision, by maturity. 48,663 48,756 48,767 48,757 48,859 48,595 48,457 47,727 47,799 16 One year or less........................................ 8,340 8,241 8,195 8,081 8,256 7,804 7,608 6,661 6,704 17 Over one year............................................ 40,323 40,515 40,572 40,676 40,603 40,792 40,849 41,066 41,095 18 Other bonds, corporate stocks and securities 2,738 2,715 2,712 2,734 2,867 2,864 2,804 2,808 2,862 Loans 19 Federal funds sold1.............................................. 27,324 25,814 25,090 24,363 26,715 27,960 27,972 27,775 25,294 20 To commercial banks....................................... 18,303 16,319 15,946 15,725 19,077 18,313 19,040 18,554 17,606 21 To nonbank brokers and dealers in securities. 6,836 7,042 7,342 6,704 5,906 6,658 6,511 7,018 5,984 22 To others............................................................ 2,184 2,453 1,802 1,933 1,732 2,989 2,420 2,203 1,704 23 Other loans, gross................................................. 349,853 348,541 350,318 349,340 351,900 355,779 355,016 358,854 359,999 24 Commercial and industrial............................... 140,142 140,469 140,603 140,256 141,306 141,843 142,108 143,509 143,728 25 Bankers’ acceptances and commercial paper....................................................... 3,029 2,907 3,221 2,977 3,575 3,448 3,450 3,581 3,749 26 All other........................................................ 137,113 137,562 137,382 137,279 137,731 138,395 138,658 139,928 139,980 27 U.S. addresses............................................ 130,930 131,377 131,226 131,122 131,613 132,207 132,507 133,815 133,855 28 Non-U.S. addressees.................................. 6,183 6,185 6,156 6,157 6,118 6,188 6,151 6,113 6,124 29 Real estate......................................................... 84,856 85,114 85,502 85,834 86,220 86,502 86,959 87,530 88,225 30 To individuals for personal expenditures........ 63,180 63,308 63,646 63,888 64,277 64,481 64,742 65,039 65,412 To financial institutions 31 Commercial banks in the United States.... 2,902 2,704 2,615 2,640 2,811 2,985 2,801 3,163 3,207 32 Banks in foreign countries........................... 6,436 6,300 6,078 6,108 6,225 6,740 6,295 6,012 6,135 33 Sales finance, personal finance companies, etc................................................................ 8,696 8,825 8,759 8,656 8,844 9,258 8,705 8,656 8,800 34 Other financial institutions........................... 14,788 14,770 14,719 14,632 14,705 14,985 14,986 15,223 15,240 35 To nonbank brokers and dealers in securities. 8,972 7,429 8,754 7,844 7,774 9,053 8,877 9,675 9,113 36 To others for purchasing and carrying securities2...................................................... 2,335 2,419 2,424 2,449 2,460 2,457 2,459 2,468 2,460 37 To finance agricultural production................. 4,726 4,754 4,768 4,804 4,833 4,805 4,824 4,896 4,918 38 All other............................................................ 12,819 12,447 12,448 12,229 12,443 12,672 12,258 12,682 12,760 39 5,945 6,013 6.079 6,137 6,241 6,236 6,306 6,344 6,378 40 4,676 4,694 4,700 4,717 4,718 4,782 4,796 4,806 4,787 339,232 337,834 339,538 338,486 340,941 344,761 343,913 347,703 348,834 42 Lease financing receivables.................................. 5,794 5,837 5,871 5,910 6,561 6,584 6,713 6,723 6,756 43 All other assets...................................................... 57,843 57,042 54,624 54,505 53,991 56,197 56,699 57,444 56,495 625,995 614,188 619,178 609,391 634,837 625,248 629,962 637,438 636,312 Deposits 45 Demand deposits.................................................. 181,176 168,999 176,310 167,693 181,168 175,920 180,202 182,461 178,739 46 Mutual savings banks....................................... 853 746 754 693 622 702 648 688 637 47 Individuals, partnerships, and corporations. . 128,367 120,335 126,244 120,268 129,350 125,087 130,832 126,815 124,644 48 States and political subdivisions..................... 5,679 4,260 4,558 4,331 4,547 4,531 4,433 4,906 4,632 49 U.S. government............................................... 1,450 831 877 593 732 833 870 3,311 1,832 50 Commercial banks in the United States.......... 28,839 27,596 28,739 26,802 30,093 27,344 28,389 30,058 30,532 51 Banks in foreign countries.............................. 6,344 6,824 6,859 7,024 7,206 7,744 6,504 7,110 6,757 52 Foreign governments and official institutions. 1,506 1,485 1,159 1,226 2,210 1,356 1,345 1,848 1,919 53 Certified and officers’ checks........................... 8,140 6,922 7,121 6,756 6,407 8,322 7,181 7,725 7,786 250,689 251,067 250,063 250,328 248,873 246,348 246,508 245,996 247,830 55 Savings............................................................... 76,615 76,556 76,594 76,667 76,585 77,154 77,128 77,056 77,123 56 Individuals and nonprofit organizations.... 71,634 71,494 71,528 71,588 71,510 72,052 72,027 71,956 71,946 57 Partnerships and corporations operated for 4,116 4,164 4,148 4,198 4,184 4,193 4,185 4,125 4,183 58 840 866 892 858 871 880 892 955 970 59 All other........................................................ 26 31 26 23 20 28 24 20 23 60 174,074 174,511 173,469 173,660 172,287 169,194 169,381 168,939 170,707 61 Individuals, partnerships, and corporations 138,075 138,623 138,085 138,505 137,453 135,629 136,278 136,316 137,994 62 States and political subdivisions................. 23,004 23,102 22,996 23,197 22,914 22,086 21,874 21,446 21,480 63 474 477 490 493 486 475 472 470 466 64 Commercial banks in the United States.... 6,205 6,066 5,825 5,619 5,452 5,098 4,959 4,932 4,984 65 Foreign governments, official institutions, 6,316 6,243 6,073 5,845 5,982 5,905 5,798 5,775 5,782 85,265 84,666 85,177 83,123 93,387 92,947 92,103 89,606 89,385 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks---- 924 1,569 1,081 1,195 2,352 905 420 1,238 2,007 68 Treasury tax-and-loan notes............................. 3,708 4,216 3,797 2,896 2,476 1,580 2,152 9,747 8,716 69 All other liabilities for borrowed money........ 12,005 11,309 10,586 10,922 11,316 11,294 11,225 11,388 11,969 70 Other liabilities and subordinated note and debentures...................................................... 49,756 49,750 49,354 50,461 52,454 53,178 54,162 54,033 54,568 583,524 571,575 576,368 566,618 592,025 582,171 586,773 594,470 593,213 72 Residual (total assets minus total liabilities)4... 42,471 42,613 42,809 42,773 42,812 43,076 43,190 42,967 43,099 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 May 2 May 9 May 16 May 23 May 30^ June 6p June 13*> June 20p June 27 p 1Cash items in process of collection..................... 46,237 38,942 44,634 40,338 51,330 41,275 44,810 46,022 44,839 2 Demand deposits due from banks in the United States................................................................. 12,974 13,232 13,690 11,960 16,587 12,889 13,034 14,503 15,078 3 All other cash and due from depositary institutions......................................................... 28,377 27,473 27,136 25,212 29,412 24,882 25,179 27,704 30,802 4 Total loans and securities..................................... 439,395 437,339 438,594 437,339 441,868 448,485 448,168 449,253 447,015 Securities 5 U.S. Treasury securities....................................... 33,594 34,013 34,678 34,842 34,589 36,791 36,317 34,896 33,116 6 Trading account................................................ 4,342 4,780 5,531 5,404 5,304 6,563 6,117 5,492 4,662 7 Investment account, by maturity..................... 29,252 29,234 29,146 29,438 29,285 30,228 30,200 29,404 28,454 8 One year or less............................................ 8,594 8,698 8,557 8,612 8,622 8,913 8,939 8,672 7,993 9 16,649 16,547 16,459 16,557 16,438 17,208 17,074 16,641 16,432 10 Over five years.............................................. 4,009 3,989 4,130 4,269 4,226 4,106 4,187 4,091 4,028 11 61,682 62,075 61,784 61,979 62,126 62,043 63,047 62,246 62,934 12 Trading account................................................ 3,084 3,394 3,099 3,293 3,027 3,118 3,836 3,288 3,718 13 Investment account.......................................... 58,598 58,681 58,685 58,686 59,098 58,925 59,211 58,958 59,216 14 11,299 11,313 11,305 11,304 11,497 11,603 12,096 12,568 12,714 15 States and political subdivision, by maturity. 44,788 44,877 44,895 44,877 44,979 44,702 44,560 43,837 43,899 16 One year or less........................................ 7,647 7,559 7,518 7,398 7,576 7,257 7,061 6,123 6,158 17 37,141 37,319 37,376 37,478 37,403 37,445 37,499 37,715 37,741 18 Other bonds, corporate stocks and securities 2,510 2,491 2,484 2,505 2,622 2,620 2,555 2,553 2,602 Loans 19 25,527 24,080 23,302 22,905 25,102 25,810 25,891 25,637 23,447 20 To commercial banks................................*.••• 16,757 14,833 14,437 14,543 17,805 16,420 17,267 16,717 16,119 21 To nonbank brokers and dealers in securities. 6,606 6,815 7,081 6,449 5,583 6,418 6,227 6,739 5,661 22 2,164 2,432 1,784 1,913 1,714 2,972 2,397 2,180 1,668 23 Other loans, gross................................................. 328,426 327,086 328,812 327,663 330,214 334,062 333,214 336,816 337,875 24 Commercial and industrial............................... 132,937 133,255 133,346 132,990 134,078 134,609 134,849 136,159 136,373 25 Bankers’ acceptances and commercial paper...................................................... 2,973 2,853 3,165 2,926 3,520 3,395 3,395 3,526 3,696 26 All other........................................................ 129,964 130,402 130,181 130,064 130,557 131,214 131,454 132,632 132,676 27 123,835 124,272 124,076 123,957 124,490 125,075 125,353 126,570 126,602 28 Non-U.S. addressees.................................. 6,129 6,130 6,105 6,108 6,068 6,139 6,102 6,063 6,074 29 79,595 79,827 80,224 80,527 80,903 81,178 81,605 82,147 82,823 30 To individuals for personal expenditures........ 56,221 56,346 56,662 56,743 57,104 57,297 57,530 57,761 58,092 To financial institutions 31 Commercial banks in the United States.... 2,822 2,619 2,537 2,560 2,729 2,903 2,729 3,082 3,130 32 Banks in foreign countries.................... 6,372 6,240 6,019 6,059 6,176 6,688 6,242 5,962 6,071 33 Sales finance, personal finance companies, 8,506 8,637 8,580 8,487 8,673 9,090 8,530 8,484 8,617 34 14,344 14,323 14,277 14,196 14,263 14,540 14,536 14,764 14,782 35 To nonbank brokers and dealers in securities. 8,884 7,338 8,663 7,754 7,688 8,967 8,799 9,583 9,002 36 To others for purchasing and carrying 2,102 2,183 2,196 2,217 2.229 2,227 2,223 2,231 2,239 37 To finance agricultural production................. 4,571 4,599 4,614 4,647 4,677 4,648 4,665 4,735 4,753 38 12,070 11,717 11,694 11,483 11,695 11,915 11,506 11,910 11,992 5,433 5,495 5,556 5,608 5,714 5,709 5,773 5,807 5,838 40 4,402 4,420 4,426 4,443 4,449 4,513 4.527 4,536 4,519 41 318,591 317,171 318,831 317,612 320,051 323,840 322,913 326,474 327,517 42 Lease financing receivables.................................. 5,617 5,659 5,689 5,729 6,379 6,400 6,528 6,539 6,570 43 56,321 55,555 53,178 53,056 52,472 54,704 55,216 55,936 55,018 588,921 578,201 582,921 573,634 598,050 588,635 592,937 599,958 599,320 Deposits 45 Demand deposits.................................................. 169,618 158,629 165,527 157,622 170,301 165,077 169,085 171,369 168,082 46 818 718 725 671 600 669 615 660 615 47 Individuals, partnerships, and corporations.. 119,554 112,254 117,811 112,385 120,818 116,646 122,147 118,247 116,387 48 States and political subdivisions..................... 5,089 3,689 4,003 3,738 4,023 3,925 3,834 4,296 4,066 49 U.S. government............................................. 1,068 755 775 542 672 750 764 3,035 1,642 50 Commercial banks in the United States.......... 27,450 26,286 27,389 25,580 28,679 26,066 27,032 28,818 29,278 51 Banks in foreign countries............................... 6,279 6,762 6,791 6,965 7,143 7,696 6,441 7,039 6,678 52 Foreign governments and official institutions. 1,504 1,482 1,157 1,222 2,203 1,354 1,340 1,827 1,906 53 Certified and officers’ checks........................... 7,855 6,682 6,874 6,520 6,163 7,970 6,912 7,447 7,510 233,712 234,019 233,017 233,153 231,577 229,176 229,369 228,847 230,596 55 Savings............................................................... 71,089 71,012 71,080 71,134 71,056 71,588 71,564 71,510 71,566 56 Individuals and nonprofit organizations---- 66,473 66,338 66,384 66,435 66,369 66,867 66,851 66,790 66,792 57 Partnerships and corporations operated for 3,811 3,853 3,836 3,883 3,870 3,878 3,873 3,816 3,866 58 Domestic governmental units....................... 780 789 836 794 797 816 818 885 886 59 24 30 25 22 19 27 22 19 22 60 162,624 163,007 161,937 162,019 160,521 157,588 157,804 157,337 159,030 61 Individuals, partnerships, and corporations.. 129,044 129,574 129,000 129,321 128,130 126,399 127,046 127,028 128,619 62 States and political subdivisions..................... 20,880 20,937 20,843 21,027 20,765 19,986 19,808 19,418 19,464 63 469 475 484 488 481 470 465 464 460 64 Commercial banks in the United States......... 5,942 5,804 5,563 5,364 5,188 4,852 4,709 4,677 4,731 65 Foreign governments, official institutions, 6,289 6,217 6,047 5,819 5,957 5,882 5,776 5,749 5,756 81,243 80,536 81,218 79,174 89,254 88,704 87,941 85,430 85,242 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks---- 877 1,532 1,065 1,161 2,324 902 399 1,218 1,957 68 Treasury tax-and-loan notes............................ 3,429 3,918 3,512 2,692 2,294 1,464 1,989 8,988 8,098 69 All other liabilities for borrowed money........ 11,596 10,978 10,199 10,377 10,917 10,882 10,685 10,974 11,560 70 Other liabilities and subordinated note and 48,602 48,618 48,225 49,336 51,244 52,008 52,967 52,842 53,356 71 549,079 538,232 542,764 533,515 557,912 548,214 552,436 559,669 558,892 72 Residual (total assets minus total liabilities)4... 39,842 39,969 40,157 40,118 40,138 40,421 40,501 40,289 40,428 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 repurchases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Financial Statistics □ July 1979 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1979 Account May 2 May 9 May 16 May 23 May 30p June 6p June 13? June 20^ June 27^ 1 Cash items in process of collection..................... 16,659 14,531 15,740 15,030 17,513 14,018 16,159 17,222 17,361 2 Demand deposits due from banks in the United States................................................................. 8,769 9,203 9,101 7,825 11,314 8,455 8,775 10,191 11,158 3 All other cash and due from depositary institutions......................................................... 6,818 7,156 7,437 5,517 7,733 6,927 5,895 6,023 7,268 4 Total loans and securities1................................... 100,834 99,282 99,118 98,994 98,738 101,566 101,371 103,092 101,217 Securities 6 7 Investment account, by maturity..................... 6,491 6,498 6,484 6,6io 6,452 6,775 6,695 6,540 6,454 8 One year or less............................................ 860 908 898 930 934 1,007 1,071 1,043 1,094 9 Over one through five years......................... 4,665 4,639 4,629 4,618 4,550 4,970 4,829 4,736 4,654 10 966 952 958 1,062 968 798 795 761 706 11 12 13 11,219 11,136 11,128 11,085 11,264 11,227 11,248 11,240 11,230 14 U.S. government agencies............................. 1,352 1,352 1,359 1,362 1,416 1,426 1,533 1,596 1,599 15 States and political subdivision, by maturity. 9,334 9,249 9,232 9,185 9,196 9,158 9,134 9,059 9,025 16 One year or less..................................... 1,762 1,680 1,689 1,630 1,696 1,668 1,662 1,543 1,532 17 Over one year............................................. 7,572 7,570 7,542 7,555 7,500 7,490 7,473 7,516 7.493 18 Other bonds, corporate stocks and securities 533 536 538 538 652 643 580 585 606 Loans 19 Federal funds sold 3.............................................. 7,641 7,232 6,119 6,809 5,358 6,394 6,759 7,227 5,848 20 To commercial banks....................................... 4,036 3,160 2,615 3,372 2,926 3,396 3,619 3,783 3,360 21 To nonbank brokers and dealers in securities. 2,906 3,032 3,015 2,943 1,922 2,337 2,426 2,734 2,001 22 To others............................................................ 698 1,040 489 494 510 662 714 710 486 77,625 76,570 77,553 76,672 77,957 79,480 79,007 80,432 80,032 24 Commercial and industrial............................... 39,845 39,977 39,930 39,547 40,534 40,436 40,579 41,131 41,386 25 Bankers’ acceptances and commercial 850 738 945 806 1,261 1,033 1,048 1,255 1,274 26 All other........................................................ 38,995 39,239 38,985 38,740 39,273 39,404 39,531 39,876 40,112 27 U.S. addressees.......................................... 36,730 36,925 36,685 36,429 36,980 37,092 37,268 37,631 37,867 28 Non-U.S. addressees................................. 2,264 2,314 2,300 2,311 2,293 2,312 2,263 2,244 2,246 29 Real estate......................................................... 10,579 10,585 10,630 10,676 10,858 10,879 10,948 11,042 11,070 30 To individuals for personal expenditures---- 7,538 7,526 7,578 7,505 7,589 7,624 7,653 7,685 7,722 To financial institutions 31 Commercial banks in the United States---- 987 971 809 815 831 1,068 977 937 997 32 Banks in foreign countries...................... 2,908 2,997 2,902 3,050 3,005 3,347 2,947 2,808 2,813 33 Sales finance, personal finance companies, etc................................................................ 3,252 3,268 3,195 3,169 3,316 3,525 3,194 3,166 3,198 34 Other financial institutions...................... 4,339 4,319 4,285 4,266 4,256 4,324 4,391 4,563 4,567 35 To nonbank brokers and dealers in securities. 5,054 3,868 5,054 4,431 4,472 5,250 5,323 5,978 5,332 36 To others for purchasing and carrying 359 414 420 412 419 412 415 414 410 37 To finance agricultural production................. 243 234 232 240 238 235 235 230 237 38 2,520 2,412 2,518 2,560 2,438 2,377 2,344 2,477 2,299 697 703 715 719 831 825 833 845 851 40 Loan loss reserve........................................ 1,444 1,451 1,452 1,463 1,462 1,485 1,504 1,502 1,496 41 75,484 74,416 75,386 74,490 75,664 77,170 76,670 78,084 77,684 42 Lease financing receivables................................... 534 552 550 550 1,185 1,184 1,279 1,281 1,282 43 29,691 29,598 28,442 29,435 27,630 28,743 29,899 30,747 28,819 163,306 160,323 160,388 157,350 164,113 160,894 163,378 168,555 167,106 Deposits 56,021 53,265 53,721 52,306 55,610 53,285 54,811 57,629 58,036 46 Mutual savings banks...................................... 447 414 398 395 314 342 328 324 330 47 Individuals, partnerships, and corporations... 29,373 26,463 28,017 26,926 29,272 27,466 29,405 28,277 28,640 48 States and political subdivisions...................... 453 349 442 436 448 520 441 499 517 49 304 140 86 63 84 127 120 939 338 50 Commercial banks in the United States.......... 15,781 16,149 15,729 15,049 15,382 14,139 15,530 17,103 17,749 51 Banks in foreign countries.............................. 4,648 5,262 5,075 5,282 5,459 5,551 4,597 5,314 4,980 52 Foreign governments and official institutions. 1,271 1,258 882 981 1,862 1,069 1,068 1,558 1,613 53 Certified and officers’ checks........................... 3,744 3,229 3,091 3,173 2,788 4,071 3,322 3,615 3,869 54 Time and savings deposits................................... 45,353 44,932 43,716 43,163 42,910 41,784 41,280 40,634 40,648 55 9,917 9,881 9,915 9,896 9,872 9,950 9,989 10,012 9,998 56 Individuals and nonprofit organizations.... 9,253 9,215 9,222 9,224 9,272 9,313 9,348 9,345 9,349 57 Partnerships and corporations operated for 447 447 449 453 402 402 404 398 403 58 Domestic governmental units....................... 201 196 227 205 190 218 224 258 233 59 17 23 17 14 9 17 12 11 13 60 35,436 35,051 33,801 33,267 33,038 31,833 31,291 30,621 30,650 61 Individuals, partnerships, and corporations. 27,604 27,372 26,516 26,319 25,974 25,085 24,739 24,297 24,418 62 1,686 1,704 1,703 1,704 1,704 1,636 1,601 1,497 1,464 63 U.S. government........................................... 46 46 43 43 42 42 41 40 41 64 Commercial banks in the United States.... 2,400 2,286 2,042 1,918 1,871 1,675 1,604 1,516 1,463 65 Foreign governments, official institutions, and banks................................................... 3,699 3,643 3,497 3,283 3,446 3,395 3,307 3,271 3,262 24,152 24,004 24,251 23,018 25,416 26,120 27,498 28,026 27,237 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks........ 165 100 554 377 550 435 785 410 68 Treasury tax-and-loan notes........................... 44 821 752 583 621 350 403 1,701 1,625 69 All other liabilities for borrowed money........ 5,108 4,633 4,776 5,003 5,262 5,243 5,210 5,353 5,335 70 Other liabilities and subordinated note and debentures...................................................... 19,561 19,576 19,383 19,701 20,458 20,350 20,815 21,160 20,520 71 150,405 147,332 147,153 144,151 150,829 147,568 150,017 155,288 153,811 72 Residual (total assets minus total liabilities)?.. 12,901 12,991 13,235 13,199 13,284 13,326 13,362 13,267 13,295 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 May 2 May 9 May 16 May 23 May 30p June 6 p June 13 p June 20p June U p Banks with Assets of $750 Million or more 1 Total loans (gross) and investments adjusted1... 458,731 458,895 460,772 459,637 460,925 468,861 468,148 469,668 468,098 2 Total loans (gross) adjusted1.................................... 355,972 355,332 356,846 355,337 356,727 362,441 361,146 364,912 364,480 3 Demand deposits adjusted2....................................... 101,762 99,644 99,779 97,968 96,416 104,232 103,847 100,705 99,375 4 Time deposits in accounts of $100,000 or more. 121,094 120,992 119,633 119,840 117,997 114,912 114,586 113,968 115,666 5 Negotiable CDs........................................................ 86,096 86,266 85,078 84,841 83,096 80,628 80,288 79,926 81,461 6 Other time deposits.................................................. 34,998 34,726 34,555 35,000 34,901 34,283 34,297 34,042 34,205 7 Loans sold outright to affiliates 3............................ 3,662 3,625 3,563 3,718 3,737 3,800 3,744 3,785 3,832 8 Commercial and industrial.................................... 2,597 2,626 2,572 2,715 2,722 2,788 2,785 2,843 2,893 9 Other............................................................................. 1,065 999 991 1,004 1,016 1,012 958 942 939 Banks with Assets of $ 1 Billion or more 10 Total loans (gross) and investments adjusted1... 429,650 429,802 431,602 430,287 431,498 439,383 438,473 439,797 438,123 11 Total loans (gross) adjusted1.................................... 334,373 333,714 335,140 333,466 334,783 340,549 339,109 342,654 342,073 12 Demand deposits adjusted2....................................... 94,863 92,646 92,729 91,163 89,620 96,986 96,478 93,494 92,323 13 Time deposits in accounts of $100,000 or more. 113,666 113,527 112,149 112,258 110,322 107,416 107,158 106,506 108,163 14 Negotiable CDs........................................................ 81,200 81,328 80,117 79,795 77,940 75,577 75,282 74,909 76,380 15 Other time deposits.................................................. 32,465 32,198 32,032 32,463 32,381 31,838 31,875 31,597 31,784 16 Loans sold outright to affiliates3............................. 3,615 3,578 3,517 3,672 3,691 3,751 3,696 3,738 3,787 17 Commercial and industrial.................................... 2,577 2,606 2,553 2,697 2,704 2,767 2,765 2,824 2,874 18 Other............................................................................. 1,038 972 964 975 987 984 930 914 914 Banks in New York City 19 Total loans (gross) and investments adjusted1* 4. 97,952 97,305 97,860 96,989 97,274 99,412 99,113 100,719 99,206 20 Total loans (gross) adjusted1.................................... 80,242 79,671 80,248 79,294 79,558 81,410 81,170 82,938 81,522 21 Demand deposits adjusted2....................................... 23,277 22,445 22,165 22,163 22,631 25,002 23,002 22,365 22,587 22 Time deposits in accounts of $100,000 or more. 29,795 29,374 28,099 27,546 27,283 26,104 25,444 24,762 24,798 23 Negotiable CDs........................................................ 22,531 22,108 20,874 20,302 19,881 18,742 18,083 17,491 17,534 24 Other time deposits.................................................. 7,264 7,266 7,224 7,244 7,402 7,362 7,361 7,271 7,265 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 □ July 1979 1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial Loans Millions of dollars Outstanding Net change during Industry classification 1979 1979 1979 Feb. 28 Mar. 28 Apr. 25 May 20 June 27 Ql Q2 Apr. May June? 1 Durable goods manufacturing.......... 18,745 19,478 20,596 20,648 20,895 1,474 1,417 1,118 52 248 2 Nondurable goods manufacturing... 16,767 17,442 17,542 17,303 17,418 226 -24 101 -239 115 3 Food, liquor, and tobacco............. 4,677 4,804 4,747 4,365 4,405 -132 -399 -58 -382 40 4 Textiles, apparel, and leather........ 3,942 4,189 4,322 4,547 4,700 464 512 134 225 153 5 Petroleum refining.......................... 2,328 2,276 2,112 2,067 1,951 -367 -324 -164 -45 -116 6 Chemicals and rubber.................... 3,356 3,488 3,583 3,496 3,447 -52 -41 96 -87 -50 7 Other nondurable goods................ 2,463 2,685 2,778 2,827 2,914 314 229 93 50 87 8 Mining (including crude petroleum and natural gas).............................. 9,971 10,140 10,373 10,888 11,009 -512 869 233 515 121 9 Trade................................................... 21,415 22,454 22,930 23,574 23,985 2,490 1,531 476 644 411 10 Commodity dealers......................... 1,946 1,892 1,815 1,957 1,927 -71 35 -78 143 -30 11 Other wholesale............................... 10,366 10,960 11,260 11,401 11,748 1,524 788 300 142 346 12 Retail............................................... 9,103 9,602 9,856 10,216 10,310 1,037 709 254 360 94 13 Transportation, communication, and other public utilities................... 13,760 13,980 14,391 14,610 15,304 569 1,324 411 219 693 14 Transportation................................ 6,009 6,198 6,251 6,405 6,473 557 274 53 154 67 15 Communication............................... 1,829 1,845 1,880 1,886 2,009 48 164 35 6 123 16 Other public utilities....................... 5,922 5,936 6,260 6,319 6,822 -37 886 323 59 503 17 Construction....................................... 5,034 5,355 5,461 5,744 5,585 148 230 106 282 -159 18 Services................................................ 15,451 15,844 16,264 16,868 17,225 887 1,380 419 604 357 19 All other1............................................ 16,075 14,592 14,892 14,854 15,182 -2,316 590 300 -38 328 20 Total domestic loans.......................... 117,218 119,285 122,450 124,490 126,602 2,966 7,317 3,165 2,039 2,113 21 Memo: Term loans (original maturity more than 1 year) included in domestic loans................................. 58,488 59,357 61,869 62,798 63,653 4,084 4,296 '2,512 929 855 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 Corporations1 Billions of dollars, estimated daily-average balances At commercial banks Type of holder 1977 1978 1979 1974 1975 1976 Dec. Dec. Dec. Sept. Dec. Mar. June Sept. Dec. Mar.2 1 All holders, individuals, partnerships, and corporations............................................................ 225.0 236.9 250.1 252.7 274.4 262.5 271.2 278.8 294.6 270.4 2 Financial business.................................................. 19.0 20.1 22.3 23.7 25.0 24.5 25.7 25.9 27.8 24.4 3 Nonfinancial business............................................ 118.8 125.1 130.2 128.5 142.9 131.5 137.7 142.5 152.7 135.9 73.3 78.0 82.6 86.2 91.0 91.8 92.9 95.0 97.4 93.9 2.3 2.4 2.7 2.5 2.5 2.4 2.4 2.5 2.7 2.7 11.7 11.3 12.4 11.8 12.9 12.3 12.4 13.1 14.1 13.5 At weekly reporting banks 1978 1979 1975 1976 1977 Dec. Dec. Dec. July Aug. Sept. Oct. Nov. Dec. Mar. 3 7 All holders, individuals, partnerships, and 124.4 128.5 139.1 139.9 137.7 139.7 141.3 142.7 147.0 121.9 8 Financial business.................................................. 15.6 17.5 18.5 19.4 19.4 18.9 19.1 19.3 19.8 16.9 69.9 69.7 76.3 73.7 72.0 74.1 75.0 75.7 79.0 64.6 29.9 31.7 34.6 37.1 36.8 37.1 37.5 37.7 38.2 31.1 2.3 2.6 2.4 2.3 2.4 2.4 2.5 2.5 2.5 2.6 12 Other....................................................................... 6.6 7.1 7.4 7.3 7.1 7.3 7.2 7.5 7.5 6.7 1. Figures include cash items in process of collection. Estimates of gross 3. After the end of 1978 the large weekly reporting bank panel was deposits are based on reports supplied by a sample of commercial banks. changed to 170 large commercial banks, each of which had total assets in Types of depositors in each category are described in the June 1971 domestic offices exceeding $750 million as of December 31, 1977. See Bulletin, p. 466. “Announcements,” p. 408 in the May 1979 Bulletin. Beginning in 2. Beginning with the March 1979 survey, the demand deposit ownership March 1979, demand deposit ownership estimates for these large banks survey sample was reduced to 232 banks from 349 banks, and the estima­ are constructed quarterly on the basis of 97 sample banks and are not tion procedure was modified slightly. To aid in comparing estimates comparable with earlier data. The following estimates in billions of dollars based on the old and new reporting sample, the following estimates in for December 1978 have been constructed for the new large-bank panel: billions of dollars for December 1978 have been constructed using the new financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; smaller sample: financial business, 27.0; nonfinancial business, 146.9; foreign, 2.5; other, 6.8. consumer, 98.3; foreign, 2.8; and other, 15.1. 1.33 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1978 1979 1975 1976 1977 Instrument Dec. Dec. Dec. Nov. Dec. Jan. Feb. Mar. Apr. May Commercial paper (seasonally adjusted) 1 All issuers................................................................ 48,471 52,971 65,101 80,679 83,665 85,226 87,358 90,796 92,725 96,106 Financial companies1 Dealer-placed paper 2 2 Total.................................................................... 6,212 7,261 8,884 11,487 12,296 12,915 13,419 14,247 14,961 15,551 3 Bank-related........................................................ 1,762 1,900 2,132 3,231 3,521 4,413 3,969 3,793 4,251 4,141 Directly placed paper 3 4 Total.................................................................... 31,404 32,511 40,484 50,093 51,630 52,880 54,586 55,653 55,313 57,886 5 Bank-related........................................................ 6,892 5,959 7,102 11,478 12,314 12,191 12,166 12,642 12,788 13,799 6 Nonfinancial companies4...................................... 10,855 13,199 15,733 19,099 19,739 19,431 19,353 20,896 22,451 22,669 Bankers dollar acceptances (not seasonally adjusted) 7 Total........................................................................ 18,727 22,523 25,450 32,145 33,700 33,749 34,337 34,617 34,391 35,286 Holder 8 Accepting banks.................................................... 7,333 10,442 10,434 8,082 8,579 7,339 7,715 7,645 7,535 7,844 9 Own bills............................................................. 5,899 8,769 8,915 6,840 7,653 6,214 6,708 6,535 6,685 6,895 1,435 1,673 1,519 1,243 927 1,125 1,007 1,110 849 950 Federal Reserve Banks 11 Own account .................... ......................... 1,126 991 954 1 204 252 12 Foreign correspondents..................................... 293 375 362 585 664 765 750 793 861 940 13 Others...................................................................... 9,975 10,715 13,904 23,478 24,456 25,646 25,829 25,975 25,744 26,501 Basis 3,726 4,992 6,378 8,675 8,574 8,869 9,114 9,281 8,679 9,007 15 Exports from United States.................................. 4,001 4,818 5,863 7,224 7,586 7,762 7,858 8,104 8,087 8,367 16 All other................................................................. 11,000 12,713 13,209 16,245 17,540 17,118 17,365 17,232 17,625 17,912 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 Digitized for F2.R IAncSluEdRes all financial company paper sold by dealers in the open retail trade, transportation, and services. http://fraserm.satrlokeuti.sfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Financial Statistics □ July 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—May 5............. OOOO 1978—Oct. 13........... 10 1977—Oct....................... 7.52 1978—Sept...................... 9.41 26............. 27........... 10 Va Nov...................... 7.75 Oct....................... 9.94 Dec....................... 7.75 Nov...................... 10.94 June 16............. m Nov. 1........... 10 % Dec....................... 11.55 30............. 9 6........... 10V4 1978—Jan....................... 7.93 17........... 11 Feb....................... 8.00 1979—jan....................... 11.75 Aug. 31............. m 24........... 11% Mar...................... 8.00 Feb . . . . 11.75 Apr...................... 8.00 Mar...................... 11.75 Sept. 15............. 9 % Dec. 26........... 11V4 May..................... 8.27 Apr............ 11.75 28............. m June..................... 8.63 May .... 11.75 1979—june 19........... 11% July...................... 9.00 11.65 Aug...................... 9.01 1.35 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 7-12, 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)........... 8,576,070 949,806 637,101 588,718 1,427,889 673,770 4,298,785 2 Number of loans........................................................ 162,509 122,951 19,944 9,112 8,161 1,061 1,281 3 Weighted average maturity (months)................ 2.9 3.4 3.3 3.2 3.1 3.2 2.5 4 Weighted average interest rate fpercent per annum)................................................................. 12.34 12.30 12.69 13.02 12.61 12.68 12.07 5 Interquartile range1............................................. 11.50-13.02 10.67-13.42 11.19-13.83 12.36-13.75 12.00-13.37 12.16-13.17 11.50-12.40 Percentage of amount of loans 6 With floating rate...................................................... 47.6 20.8 25.4 29.2 48.7 65.4 56.2 7 Made under commitment....................................... 47.2 24.0 30.0 44.2 47.6 60.0 53.2 Long-Term Commercial and Industrial Loans 8 Amount of loans (thousands of dollars)........... 1,485,131 423,381 376,270 127,185 558,296 9 Number of loans....................................................... 25,164 22,615 2,161 181 208 10 Weighted average maturity (months)................. 48.2 40.2 58.5 47.3 47.6 11 Weighted average interest rate (percent per annum)................................................................. 12.08 11.57 11.80 12.90 12.48 12 Interquartile range1............................................. 11.30-13.16 10.00-13.24 10.75-13.00 11.75-13.52 11.75-13.00 Percentage of amount of loans 13 With floating rate...................................................... 47.4 13.2 29.2 82.2 77.6 14 Made under commitment....................................... 50.0 38.6 23.4 59.5 74.5 Construction and Land Development Loans 15 Amount of loans (thousands of dollars)........... 1,019,842 96,803 108,609 131,421 307,713 375,295 16 Number of loans........................................................ 18,490 11,506 3,209 1,826 1,680 268 7.6 8.9 6.3 7.7 8.4 6.9 18 Weighted average interest rate (percent per 12.23 12.39 11.94 11.89 12.36 12.28 19 Interquartile range1............................................. 11.25-13.45 11.30-13.35 10.76-12.62 10.00-12.73 10.64-13.72 11.25--13.75 Percentage of amount of loans 20 With floating rate...................................................... 49.3 28.5 19.6 44.5 40.3 72.4 79.5 87.7 96.4 95.1 70.3 74.7 22 Made under commitment....................................... 50.3 45.9 23.4 27.0 41.2 74.9 Type of construction 23 1- .t.o.. ..4..-..f.a...m....i.l.y.......................................... 43.0 81.5 75.2 76.8 41.9 12.7 24 Multifamily................................................................. 11.6 2.3 2.0 2.5 8.5 22.7 24 Nonresidential............................................................ 45.4 16.1 22.8 20.7 49.7 64.6 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)........... 1,057,427 200,607 181,082 145,374 178,938 157,441 193,955 27 Number of loans........................................................ 74,330 53,495 12,330 4,309 2,717 1,104 387 28 Weighted average maturity (months).................. 7.5 8.1 8.5 6.5 11.4 5.4 5.0 29 Weighted average interest rate (percent per 11.20 10.56 10.69 10.73 10.89 11.97 12.35 30 Interquartile range i............................................. 10.21-12.24 9.88-11.19 10.00-11.24 10.00-11.46 10.12-11.30 11.00-13.16 11.41-13.52 By purpose of loan 31 Feeder livestock......................................................... 11.21 10.57 10.68 10.83 10.80 11.52 12.31 32 Other livestock........................................................... 11.74 10.46 10.08 10.11 11.96 12.83 (2) 33 Other current operating expenses........................ 11.20 10.52 10.95 10.87 11.00 12.41 12.50 34 Farm machinery and equipment......................... 10.61 10.70 10.27 10.40 11.52 (2) (2) 35 Other.............................................................................. 11.15 10.70 10.82 10.95 10.03 11.79 12.70 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 G. 13 (416) statistical release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets A ll 1.36 INTEREST RATES Money and Capital Markets Averages, percent per annum 1979 1979, week ending Instrument 1976 1977 1978 Mar. Apr. May June June 2 June 9 June 16June 23June 30 Money market rates 1 Federal funds1.............................................. 5.05 5.54 7.94 10.09 10.01 10.24 10.29 10.28 10.23 10.23 10.28 10.32 Prime commercial paper2-3 2 90- to 119-day.......................................... 5.24 5.54 7.94 9.90 9.85 9.95 9.76 9.92 9.92 9.77 9.66 9.67 3 4-to 6-month........................................... 5.35 5.60 7.99 9.96 "9.87 9.98 9.71 9.91 9.88 9.71 9.61 9.61 4 Finance company paper, directly placed, 3- to 6-month3-4................................... 5.22 5.49 7.78 9.73 10.15 9.75 9.44 9.70 9.62 9.46 9.35 9.29 5 Prime bankers acceptances, 90-day3*5....... 5.19 5.59 8. 11 9.94 10.42 9.98 9.79 9.93 9.90 9.73 9.76 9.72 6 Large negotiable certificates of deposit, 3-month, secondary market6............... 5.26 5.58 8.20 10.13 10.05 10.15 9.95 10.09 9.99 9.90 9.89 9.84 7 Eurodollar deposits, 3-month7.................. 5.57 6.05 8.74 10.64 10.60 10.73 10.52 10.53 10.40 10.49 10.68 10.73 U.S. Treasury Bills3-8 Market yields 8 3-month.................................................... 4.98 5.27 7.19 9.48 9.46 9.61 9.06 9.55 9.36 8.97 8.96 8.83 9 6-month.................................................... 5.26 5.53 7.58 9.47 9.49 9.54 9.06 9.44 9.29 9.01 8.99 8.88 10 1-year........................................................ 5.52 5.71 7.74 9.38 9.28 9.27 8.81 9.05 8.94 8.74 8.84 8.64 Rates on new issue9 11 3-month.................................................... 4.989 5.265 7.221 9.457 9.493 9.592 9.045 9.526 9.554 8.956 8.869 8.802 12 6-month.................................................... 5.266 5.510 7.572 9.458 9.498 9.562 9.062 9.409 9.425 9.047 8.873 8.903 Capital market rates Government Notes and Bonds U.S. Treasury Constant maturities10 1-yea r 5.S 6.09 8.34 10.25 10.12 10.12 9.57 9.88 9.74 9.48 9.61 9.39 2-yea r 6.45 8.34 9.79 9.78 9.78 9.22 9.54 9.41 9.15 9.25 9.00 3-yea r 6.77 6.69 8.29 9.38 9.43 9.42 8.95 9.19 9.06 8.90 8.99 8.81 5-year.............................................. 7.18 6.99 8.32 9.20 9.25 9.24 8.85 9.01 8.91 8.80 8.89 8.76 7-year.............................................. 7.42 7.23 8.36 9.15 9.21 9.23 8.86 9.01 8.94 8.82 8.87 8.78 10-year............................................ 7.61 7.42 8.41 9.12 9.18 9.25 8.91 9.04 8.97 8.88 8.95 8.83 20-year............................................ 7.86 7.67 8.48 9.08 9.12 9.21 8.91 9.06 8.98 8.89 8.93 8.82 30-year............................................ 8.49 9.03 9.08 9.19 8.92 9.06 8.98 8.90 8.93 8.85 Notes and bonds maturing in1 21 3 to 5 years........................... 6.94 6.85 8.30 9.25 9.32 9.30 8.89 9.08 8.97 8.85 8.93 8.78 22 Over 10 years (long-term).. . 6.78 7.06 7.89 8.45 8.44 8.55 8.32 8.44 8.37 8.29 8.32 8.25 State and local Moody’s series12 23 Aaa................... 5.66 5.20 5.52 5.82 5.80 5.81 5.54 5.75 5.75 5.40 5.50 5.50 24 Baa................... 7.49 6.12 6.27 6.41 6.25 6.38 6.19 6.40 6.30 6.10 6.25 6.10 25 Bond Buyer series1 6.64 5.68 6.03 6.33 6.29 6.25 6.13 6.16 6.09 6.11 6.18 6.12 Corporate Bonds Seasoned issues14 26 All industries.............................. 9.01 8.43 9.07 9.76 9.81 9.96 9.81 9.94 9.90 9.81 9.76 9.72 By rating groups 27 Aaa.......................................... 8.43 8.02 8.73 9.37 9.38 9.50 9.29 9.48 9.41 9.25 9.23 9.23 28 Aa............................................ 8.75 8.24 8.92 9.61 9.65 9.86 9.66 9.80 9.77 9.69 9.61 9.53 29 A.............................................. 9.09 8.49 9.12 9.81 9.88 10.00 9.89 10.02 9.99 9.91 9.84 9.82 30 Baa.......................................... 9.75 8.97 9.45 10.26 10.33 10.47 10.38 10.45 10.44 10.39 10.35 10.32 Aaa utility bonds15 31 New issue.................................... 8.48 8.19 8.96 9.62 9.70 9.83 9.50 9.57 9.51 9.43 32 Recently offered issues............... 8.49 8.19 8.97 9.62 9.74 9.84 9.50 9.58 9.46 9.48 9.39 Dividend/Price Ratio16 33 Preferred stocks.......................... 7.97 7.60 8.25 8.77 8.29 8.82 8.87 8.83 8.86 8.83 8.87 8.91 34 Common stocks.......................... 3.77 4.56 5.28 5.39 5.35 5.58 5.53 5.65 5.54 5.49 5.55 5.52 1. Weekly figures are 7-day averages of daily effective rates for the week 10. Yields on the more actively traded issues adjusted to constant ending Wednesday; the daily effective rate is an average of the rates on maturities by the U.S. Treasury, based on daily closing bid prices. a given day weighted by the volume of transactions at these rates. 11. Unweighted averages for all outstanding notes and bonds in maturity 2. Beginning Nov. 1977, unweighted average of offering rates quoted ranges shown, based on daily closing bid prices. “Long-term” includes by at least five dealers. Previously, most representative rate quoted by all bonds neither due nor callable in less than 10 years, including a num­ those dealers. ber of very low yielding “flower” bonds. 3. Yields are quoted on a bank-discount basis. 12. General obligations only, based on figures for Thursday, from 4. The most representative offering rate published by finance companies. 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. 16. Provided by Standard and Poors’ Corporation. 9. Rates are recorded in the week in which bills are issued. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Financial Statistics □ July 1979 1.37 STOCK MARKET Selected Statistics 1978 1979 Indicator 1976 1977 1978 Dec. Jan. Feb. Mar. Apr. May June Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31,1965 = 50). 54.45 53.67 53.76 53.69 55.76 55.06 56.18 57.50 56.21 57.61 2 Industrial................................................................ 60.44 57.84 58.30 58.72 61.31 60.42 61.89 63.64 62.21 63.57 3 Transportation....................................................... 39.57 41.07 43.25 42.49 43.69 42.27 43.22 45.92 45.60 47.53 4 Utility..................................................................... 36.97 40.91 39.23 38.09 38.79 39.22 38.94 38.63 37.48 38.44 5 Finance................................................................... 52.94 55.23 56.74 55.73 57.59 56.09 57.65 59.50 58.80 61.87 6 Standard & Poor’s Corporation (1941-43 = 10)1.. 102.01 98.18 96.11 96.10 99.70 98.23 100.11 102.10 99.73 101.73 7 American Stock Exchange (Aug. 31,1973 = 100). 101.63 116.18 144.56 149.94 159.26 160.92 171.51 181.14 180.81 196.08 Volume o f trading (thousands of shares) 8 New York Stock Exchange................................... 21,189 20,936 28,591 24,622 27,988 25,037 29,536 31,033 28,352 34,662 9 American Stock Exchange.................................... 2,565 2,514 3,922 3,430 3,150 2,944 4,105 4,262 3,888 5,236 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers/dealers2 8,166 9,993 11,035 11,035 10,955 10,989 11,056 11,416 11,314 T 11 Margin stock 3............................................... 7,960 9,740 10,830 10,830 10,750 10,790 10,870 11,220 11,130 12 Convertible bonds........................................ 204 250 205 205 204 195 185 194 183 13 Subscription issues....................................... 2 3 1 1 1 4 1 2 1 n.a. Free credit balances at brokers4 14 Margin-account............................................ 585 640 835 835 810 775 830 835 840 15 Cash-account................................................ 1,855 2,060 2,510 2,510 2,565 2,430 2,490 2,550 2,590 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 33.0 21.0 29.0 21.0 23.0 22.0 18 40-49....................................................................... 23.0 36.0 28.0 28.0 32.0 31.0 29.0 29.0 30.0 n.a. 19 50-59....................................................................... 35.0 2?.0 18.0 18.0 22.0 18.0 25.0 23.0 23.0 20 60-69....................................................................... 15.0 11.0 10.0 10.0 12.0 11.0 12.0 12.0 12.0 21 70-79....................................................................... 8.7 6.0 6.0 6.0 7.0 6.0 7.0 7.0 7.0 22 80 or more.............................................................. 6.0 5.0 5.0 5.0 6.0 5.0 6.0 6.0 6.0 Special miscellaneous-account balances at br okers (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 and effective date) 7 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. 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Thrift Institutions A29 1.38 SAVINGS INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1978 1979 Account 1975 1976 1977 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May^ Savings and loan associations 1 Assets..................................... 338,233 391,907 459,241 508,977 515,352 520,677 523,649 529,820 534,168 539,715 543,459 549,184 2 Mortgages............................. 278,590 323,005 381,163 420,971 425,236 429,420 432,858 435,460 437,905 441,420 445,705 451,002 3 Cash and investment 30,853 35,724 39,150 43,987 45,577 45,869 44,855 47,653 49,018 50,130 48,674 48,295 4 Other...................................... 28,790 33,178 38,928 44,019 44,539 45,388 45,936 46,707 47,245 48,165 49,080 49,887 5 Liabilities and net worth....... 338,233 391,907 459,241 508,977 515,352 520,677 523,649 529,820 534,168 539,715 543,459 549,184 285,743 335,912 386,800 420,405 423,050 425,207 431,009 435,752 438,633 446,981 445,831 447,877 7 Borrowed money................... 20,634 19,083 27,840 38,595 39,873 40,981 42,960 42,468 41,368 41,592 43,765 44,434 8 FHLBB.............................. 17,524 15,708 19,945 28,632 29,456 30,322 31,990 31,758 31,004 31,123 32,389 33,044 9 Other.................................. 3,110 3,375 7,895 9,963 10,417 10,659 10,970 10,610 10,364 10,469 11,376 11,390 10 Loans in process................... 5,128 6,840 9,911 11,222 11,165 Ml,015 10,737 10,445 10,287 10,346 10,706 11,119 11 Other...................................... 6,949 8,074 9,506 10,676 12,832 14,666 9,918 11,971 14,250 10,919 12,971 15,257 12 Net worth2............................. 19,779 21,998 25,184 28,079 28,432 28,808 29,025 29,284 29,630 29,877 30,186 30,497 13 Memo: Mortgage loan com­ mitments outstanding3.. 10,673 14,826 19,875 21,648 21,503 20,738 18,911 r18,053 19,038 21,085 22,923 23,509 Mutual savings banks 9 14 Assets..................................... 121,056 134,812 147,287 156,110 156,843 157,436 158,174 158,892 160,078 161,866 n.a. Loans 15 Mortgage........................... 77,221 81,630 88,195 93,403 93,903 94,497 95,157 95,552 95.821 96,136 n.a. 16 Other.................................. 4,023 5,183 6,210 8,418 8,272 7,921 7,195 7,744 8 ^ 455 9,421 n.a. Securities 17 U.S. government.............. 4,740 5,840 5,895 5,172 5,105 5,035 4,959 4,838 4,801 4,814 n.a. 18 State and local government. 1,545 2,417 2,828 3,180 3,190 3,307 3,333 3,328 3,167 3,126 n.a. 19 Corporate and other4....... 27,992 33,793 37,918 39,639 39,651 39,679 39,732 40,007 40,307 40,658 n.a. 20 Cash....................................... 2,330 2,355 2,401 2,293 2,735 3,033 3,665 3,274 3,306 3,410 n.a. 21 Other assets........................... 3,205 3,593 3,839 4,006 3,988 3,962 4,131 4,149 4,222 4,300 n.a. 22 Liabilities............................... 121,056 134,812 147,287 156,110 156,843 157,436 158,174 158,892 160,078 161,866 n.a. n.a. 23 Deposits................................. 109,873 122,877 134,017 140,816 141,026 141,155 142,701 142,879 143,539 145,650 145,096 24 Regular 5........................... 109,291 121,961 132,744 139,068 139,422 139,697 141,170 141,388 142,071 144,042 143,210 25 Ordinary savings........... 69,653 74,535 78,005 75,423 74,124 72,398 71,816 69,244 68,817 68,829 67,758 26 Time and other.............. 39,639 47,426 54,739 63,645 65,298 67,299 69,354 72,145 73,254 75,213 75,452 27 Other.................................. 582 916 1,272 1,747 1,604 1,458 1,531 1,491 1,468 1,608 1,886 28 Other liabilities...................... 2,755 2,884 3,292 4,570 5,040 5,411 4,565 5,032 5,485 5,048 n.a. 29 General reserve accounts.... 8,428 9,052 9,978 10,725 10,777 10,870 10,907 10,980 11,054 11,167 n.a. 30 Memo : Mortgage loan com­ mitments outstanding 6.. 1,803 2,439 4,066 4,561 4,843 4,843 4,400 4,366 4,453 4,482 4,449 Life insurance companies 31 Assets..................................... 289,304 321,552 351,722 381,050 382,446 385,562 389,021 393,402 395,553 399,530 402,426 Securities 32 Government....................... 13,758 17,942 19,553 19,638 19,757 19,711 19,579 19,829 19,922 20,119 19,958 33 United States7............... 4,736 5,368 5,315 5,156 5,183 4,934 4,795 5,049 5,209 5.324 5,147 4,508 5,594 6,051 6,001 6,035 6,235 6,250 6,236 6,132 6,106 5,979 35 Foreign*......................... 4,514 6,980 8,187 8,481 8,539 8,542 8,534 8,544 8,581 8,689 8,832 36 Business............................. 135,317 157,246 175,654 196,152 195,883 197,615 197,342 201,061 201,869 203,971 205,247 n.a. 107,256 122,984 141,891 159,972 161,347 162,347 161,923 165,552 166,693 167,625 168,862 38 Stocks............................. 28,061 34,262 33,763 36,180 34,536 34,780 35,419 35,509 35,176 36,346 36,385 39 Mortgages............................. 89,167 91,552 96,848 102,365 103,161 104,106 105,932 106,397 107,137 108,189 109,009 40 Real estate............................. 9,621 10,476 11,060 11,583 11,693 11,707 11,776 11,841 11,919 11,959 12,071 41 Policy loans........................... 24,467 25,834 27,556 29,290 29,521 29,818 30,202 30,506 30,835 31,224 31,586 42 Other assets........................... 16,971 18,502 21,051 22,022 22,431 22,605 24,190 23,768 23,871 24,068 24,555 Credit unions 43 Total assets/liabilities and capital............................. 38,037 45,225 54,084 61,605 61,194 61,614 62,595 61,756 62,319 63,883 63,247 64,372 44 Federal.................................. 20,209 24,396 29,574 34,187 33,823 34,215 34,681 34,165 34,419 35,289 34,653 35,268 45 State....................................... 17,828 20,829 24,510 27,418 27,371 27,399 27,914 27,591 27,900 28,594 28,594 29,104 46 Loans outstanding................ 28,169 34,384 42,055 49,984 50,393 51,103 51,807 51,526 51,716 52,480 52,542 53,100 47 Federal............................... 14,869 18,311 22,717 27,355 27,545 28,031 28,583 28,340 28,427 28,918 28,849 29,109 48 State................................. 13,300 16,073 19,338 22,629 22,848 23,072 23,224 23,186 23,289 23,562 23,693 23,991 49 Savings................................... 33,013 39,173 46,832 52,394 52,240 52,418 53,048 51,916 52,484 54,243 53,745 54,638 50 Federal (shares)................. 17,530 21,130 25,849 28,923 28,865 28,992 29,326 28,427 28,743 29,741 29.339 29,755 51 State (shares and deposits). 15,483 18,043 20,983 23,471 23,375 23,426 23,722 23,489 23,741 24,502 24;406 24,883 For notes see bottom of page A30. 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A30 Domestic Financial Statistics □ July 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 1979 Sept. 1977 1978 1976) H2 HI H2 Mar. Apr. May U.S. budget 1 Receipts1.............................................. 81,772 357,762 401,997 175,820 210,650 206,275 31,144 52,230 38,287 2 Outlays1................................................ 94,729 402,725 450.836 216,781 222,518 238,150 43,725 40,752 41,618 3 Surplus, or deficit (—)......................... -12,956 -44,963 -48,839 -40,961 -11,870 -31,875 -12,581 11,478 -3,331 4 Trust funds...................................... -1,952 7,833 12,693 4,293 4,334 11,755 -1,155 705 6,274 5 Federal funds2................................. -11,004 -52,796 -61,532 -45,254 -16,204 -43,630 -11,426 10,774 -9,605 Off-budget entities surplus, or deficit (—) 6 Federal Financing Bank outlays........ -2,564 - 8,201 -10,614 -6,663 -5,105 -5,082 -1,639 -1,102 -1,560 7 Other 3.................................................. 779 -483 287 428 -790 1,841 498 -542 69 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (—)......................... -14,741 -53,647 -59,166 -47,196 -17,765 -35,117 -13,722 9,834 -4,822 Financed by 9 Borrowing from the public............. 18,027 53,516 59,106 40,284 23,374 30,308 8,012 -4,965 1,806 10 Cash and monetary assets (de­ crease, or increase (—)).......... -2,899 -2,238 -3,023 4,317 -5,098 3,381 -779 -2,991 -16 11 Other4.............................................. -387 2,369 3,083 2,597 -511 1,428 6,489 -1,878 3,032 Memo items 12 Treasury operating balance (level, end of period)............................. 17,418 19,104 22,444 12,274 17,526 16,291 7,685 8,342 4,657 13 Federal Reserve Banks.................. 13,299 15,740 16,647 7,114 11,614 4,196 5,726 3,100 1,974 14 Tax and loan accounts.................. 4,119 3,364 5,797 5,160 5,912 12,095 1,959 5,242 2,683 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. The NAMSB reports that, effective April 1979, balance sheet data Credit unions: Estimates by the National Credit Union Administration are not strictly comparable with previous months. This largely reflects: for a group of federal and state-chartered credit unions that account for (1) changes in FDIC reporting proceedures; and (2) reclassification of about 30 percent of credit union assets. Figures are preliminary and certain items. revised annually to incorporate recent benchmark data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.40 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year Transition quarter Fiscal Fiscal Source or type (July- year year 1977 1978 1979 Sept. 1977 1978 1976) H2 HI H2 Mar. Apr. May Receipts 1 All sources1.......................................... 81,772 357,762 401,997 175,820 210,650 206,275 31,144 52,230 38,287 2 Individual income taxes, net............... 38,800 157,626 180,988 82,911 90,336 98,854 8,255 25,029 14,575 3 Withheld........................................... 32,949 144,820 165,215 75,480 82,784 90,148 16,194 15,537 16,736 4 Presidential Election Campaign 1 37 39 1 36 3 10 7 7 5 Nonwithheld..................................... 6,809 42,062 47,804 9,397 37,584 10,777 3,119 17,975 5,696 958 29,293 32,070 1,967 30,068 2,075 11,068 8,489 7,864 7 Corporation income taxes 9,808 60,057 65,380 25,121 38,496 28,536 9,879 10,418 1,870 1,348 5,164 5,428 2,819 2,782 2,757 578 651 467 10 Social insurance taxes and contribu­ tions, net....................................... 25,760 108,683 123,410 52,347 66,191 61,064 10,373 14,165 18,652 11 Payroll employment taxes and contributions 2......................... 21,534 88,196 99,626 44,384 51,668 51,052 9,315 9,051 12,932 12 Self-employment taxes and contributions 3......................... 269 4,014 4,267 316 3,892 369 321 2,993 318 2,698 11,312 13,850 4,936 7,800 6,727 198 1,608 4,864 1,259 5,162 5,668 2,711 2,831 2,917 540 513 538 4,473 17,548 18,376 9,284 8,835 9,879 1,434 1,529 1,601 1,212 5,150 6,573 2,848 3,320 3,748 621 623 645 1,455 7,327 5,285 2,837 2,587 2,691 449 323 559 1,612 6,536 7,413 3,292 3,667 4,260 712 794 852 Outlays 8 94,729 402,725 450,836 216,781 222,518 238,150 43,725 40,752 41,618 22,307 97,501 105,186 50,873 52,979 55,129 10,159 9,439 9,965 21 International affairs............................. 2,197 4,813 5,922 2,896 2,904 2,221 896 407 743 22 General science, space, and 1,161 4,677 4,742 2,318 2,395 2,362 459 256 442 51 Frtercv ........................... 794 4,172 5,861 2,487 4,461 700 665 737 24 Natural resources and environment.. 2,532 10,000 10,925 4,959 6,119 855 965 969 581 5,532 7,731 5,477 2,353 4,854 457 502 69 26 Commerce and housing credit............ 1,392 -44 3,325 —946 3,291 173 100 16 27 Transportation.................................... 3,304 14,636 15,444 7,723 8,758 1,257 1,251 1,326 28 Community and regional 1,340 6,286 11,000 4,924 5,928 6,108 773 602 787 29 Education, training, employment, 5,162 20,985 26,463 10,800 12,792 13,676 2,578 2,595 2,559 8,721 38,785 43,676 19,422 21,391 23,942 4,231 4,060 4,258 32,797 137,915 146,212 71,081 75,201 73,305 14,415 13,316 13,588 32 Veterans benefits and services............ 3,962 18,038 18,974 9,864 9,603 9,545 2,717 840 1,694 859 3,600 3,802 1,723 1,946 1,973 347 369 364 883 3,374 3,777 1,749 1,803 2,111 435 305 454 35 General-purpose fiscal assistance....... 2,092 9,499 9,601 4,926 4,665 4,385 67 1,752 160 36 Interest 6.............................................. 7,216 38,009 43,966 19,962 22,280 24,110 3,807 3,993 4,241 37 Undistributed offsetting receipts 6i7.. -2,567 -15,053 -15,772 -8,506 -7,945 -8,200 -603 -664 -755 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 □ July 1979 1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1976 1977 1978 1979 Item Dec. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding..................... 665.5 685.2 709.1 729.2 747.8 758.8 780.4 797.7 804.6 2 Public debt securities........................... 653.5 674.4 698.8 718.9 738.0 749.0 771.5 789.2 796.8 3 Held by public................................. 506.4 523.2 543.4 564.1 585.2 587.9 603.6 619.2 630.5 4 Held by agencies............................. 147.1 151.2 155.5 154.8 152.7 161.1 168.0 170.0 166.3 5 Agency securities................................. 12.0 10.8 10.3 10.2 9.9 9.8 8.9 8.5 7.8 6 Held by public................................. 10.0 9.0 8.5 8.4 8.1 8.0 7.4 7.0 6.3 7 Held by agencies.............................. 1.9 1.8 1.8 1.8 1.8 1.8 1.5 1.5 1.5 8 Debt subject to statutory limit............ 654.7 675.6 700.0 720.1 739.1 750.2 772.7 790.3 797.9 9 Public debt securities........................... 652.9 673.8 698.2 718.3 737.3 748.4 770.9 788.6 796.2 10 Other debt1.......................................... 1.7 1.7 1.7 1.7 1.8 1.8 1.8 1.7 1.7 11 Memo: Statutory debt limit............... 682.0 700.0 700.0 752.0 752.0 752.0 798.0 798.0 798.0 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 1979 Type and holder 1975 1976 1977 1978 Feb. Mar. Apr. May June 1 Total gross public debt.......................................... 576.6 653.5 718.9 789.2 792.2 796.8 796.4 804.8 804.9 By type 2 Interest-bearing debt............................................ 575.7 652.5 715.2 782.4 791.2 792.3 795.4 803.8 799.9 3 Marketable............................................................ 363.2 421.3 459.9 487.5 498.0 500.4 504.6 506.9 499.3 4 Bills.................................................................... 157.5 164.0 161.1 161.7 162.4 165.5 163.7 163.1 159.9 5 Notes.................................................................. 167.1 216.7 251.8 265.8 271.4 270.8 275.3 276.1 272.1 38.6 40.6 47.0 60.0 64.2 64.1 65.5 67.7 67.4 7 Nonmarketable1.................................................... 212.5 231.2 255.3 294.8 293.3 8 291.9 290.8 296.9 300.5 2.3 2.3 2.2 2.2 2.2 2.2 2.2 2.2 2.2 9 State and local government series................... 1.2 4.5 13.9 24.3 24.2 24.2 24.0 24.0 24.1 10 Foreign issues 3.................................................. 21.6 22.3 22.2 29.6 28.2 28.2 25.4 25.2 26.8 11 Government................................................... 21.6 22.3 22.2 28.0 25.4 24.0 21.3 21.0 22.7 12 Public.............................................................. 0 0 0 1.6 2.8 4.2 4.2 4.2 4.2 67.9 72.3 77.0 80.9 80.8 80.8 80.8 80.8 80.8 119.4 129.7 139.8 157.5 157.6 153.8 158.2 164.6 166.3 15 Non-interest-bearing debt..................................... 1.0 1.1 3.7 6.8 1.0 4.4 .9 1.0 5.1 By holder 5 16 U.S. government agencies and trust funds........ 139.1 147.1 154.8 170.0 170.1 166.3 170.7 89.8 97.0 102.5 109.6 103.5 110.3 108.6 18 Private investors.................................................... 349.4 409.5 461.3 508.6 518.6 519.6 517.1 19 Commercial banks................................................ 85.1 103.8 101.4 93.4 94.0 96.3 97.0 4.5 5.9 5.9 5.2 5.2 5.2 5.2 9.5 12.7 15.1 15.0 15.1 15.1 14.8 20.2 27.7 22.7 20.6 23.5 23.8 23.6 n.a. n.a. 34.2 41.6 55.2 68.6 68.6 68.8 69.1 Individuals 24 Savings bonds.................................................... 67.3 72.0 76.7 80.7 80.6 80.6 80.6 25 Other securities.................................................. 24.0 28.8 28.6 30.0 30.8 31.1 31.5 26 Foreign and international6................................... 66.5 78.1 109.6 137.8 136.9 132.8 124.8 27 Other miscellaneous investors7........................... 38.0 38.9 46.1 57.4 63.7 66.0 70.6 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 1979 1979 Type of holder 1977 1978 1977 1978 Mar. Apr. Mar. Apr. All maturities 1 to 5 years 1All holders................................................................................ 459,927 487,546 500,400 504,585 151,264 162,886 166,221 169,540 2 U.S. government agencies and trust funds........................... 14,420 12,695 12,685 12,683 4,788 3,310 2,710 2,748 3 Federal Reserve Banks........................................................... 101,191 109,616 107,655 108,588 27,012 31,283 34,057 34,255 4 Private investors...................................................................... 344,315 365,235 380,060 383,315 119,464 128,293 129,454 132,538 5 75,363 68,890 69,342 69,729 38,691 38,390 37,183 37,878 6 4,379 3,499 3,395 3,415 2,112 1,918 1,826 1,840 7 12,378 11,635 11,811 11,934 4,729 4,664 4,949 5,022 8 9,474 8,272 9,175 8,769 3,183 3,635 3,166 3,048 9 4,817 3,835 3,627 3,859 2,368 2,255 1,941 2,083 10 15,495 18,815 18,692 18,763 3,875 3,997 4,053 4,179 11 222,409 250,288 264,017 266,846 64,505 73,433 76,335 78,488 Total, within 1 year 5 to 10 years 12 All holders................................................................................ 230,691 228,516 239,125 238,544 45,328 50,400 45,163 45,161 13 U.S. government agencies and trust funds........................... 1,906 1,488 2,082 2,042 2,129 1,989 1,989 1,989 14 Federal Reserve Banks................... ..................................... 56,702 52,801 50,076 50,777 10,404 14,809 11,929 11,937 15 Private investors...................................................................... 172,084 174,227 186,967 185,725 32,795 33,601 31,245 31,235 16 Commercial banks............................................................... 29,477 20,608 22,611 22,102 6,162 7,490 7,104 7,095 17 Mutual savings banks........................................................ 1,400 817 846 855 584 496 456 456 18 Insurance companies........................................................... 2,398 1,838 1,930 1,811 3,204 2,899 2,646 2,670 19 Nonfinancial corporations.............. ................................. 5,770 4,048 5,351 5,021 307 369 342 293 20 2,236 1,414 1,522 1,608 143 89 86 93 21 7,917 8,194 7,679 7,406 1,283 1,588 1,502 1,565 22 122,885 137,309 147,027 146,921 21,112 20,671 19,109 19,064 Bills, within 1 year 10 to 20 years 23 A11 holders................................................................................ 161,081 161,747 165,459 163,730 12,906 19,800 21,145 22,595 24 U.S. government agencies and trust funds........................... 32 2 * * 3,102 3,876 3,875 3,875 25 Federal Reserve Banks............................................................ 42,004 42,397 39,266 39,815 1,510 2,088 2,130 2,142 26 Private investors...................................................................... 119,035 119,348 126,193 123,916 8,295 13,836 15,141 16,578 27 Commercial banks.............................................................. 11,996 5,707 6,704 5,775 456 956 995 1,176 28 484 150 102 114 137 143 142 138 29 Insurance companies........................................................... 1,187 753 648 518 1,245 1,460 1,455 1,594 30 Nonfinancial corporations.................................................. 4,329 1,792 2,494 2,205 133 86 173 236 31 806 262 265 257 54 60 60 59 32 6,092 5,524 4,793 4,511 890 1,420 1,616 1,689 33 All others............................................................................. 94,152 105,161 111,186 110,536 5,380 9,711 10,699 11,686 Other, within 1 year Over 20 years 34 All holders................................................................................ 69,610 66,769 73,666 74,814 19,738 25,944 28,746 28,746 35 U.S. government agencies and trust funds........................... 1,874 1,487 2,082 2,042 2,495 2,031 2,030 2,030 36 Federal Reserve Banks........................................................... 14,698 10,404 10,810 10,962 5,564 8,635 9,463 9,478 37 Private investors...................................................................... 53,039 54,879 60,774 61,810 11,679 15,278 17,254 17,239 38 15,482 14,901 15,907 16,327 578 1,446 1,449 1,477 39 916 667 744 741 146 126 125 126 40 Insurance companies........................................................... 1,211 1,084 1,282 1,294 802 774 831 837 41 Nonfinancial corporations.................................................. 1,441 2,256 2,857 2,816 81 135 143 171 42 Savings and loan associations............................................ 1,430 1,152 1,258 1,352 16 17 17 16 43 State and local governments.............................................. 1,825 2,670 2,885 2,896 1,530 3,616 3,841 3,924 44 All others............................................................................. 28,733 32,149 35,841 36,385 8,526 9,164 10,848 10,687 Note. Direct public issues only. Based on Treasury Survey of Owner­ (1) 5,456 commercial banks, 463 mutual savings banks, and 726 insurance ship from Treasury Bulletin (U.S. Treasury Department). companies, each about 80 percent; (2) 432 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 Apr. 30, 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 □ July 1979 1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1979 1979, week ending Wednesday 1976 1977 1978 Mar. Apr. May Mar. 28 Apr. 4 Apr. 11 Apr. 18 Apr. 25 May 2 1 U.S. government securities... 10,449 10,838 10,285 9,882 14,280 13,351 9,115 14,362 14,175 13,023 13,992 14,892 By maturity 2 Bills........................................ 6,676 6,746 6,173 6,204 9,906 7,555 5,993 10,787 9,099 9,224 9,608 9,739 3 Other within 1 year.............. 210 237 392 320 434 347 424 484 339 389 445 503 4 1-5 years............................... 2,317 2,320 1,889 1,744 2,184 2,256 1,393 1,640 2,733 1,745 2,188 2,154 5 5-10 years.............................. 1,019 1,148 965 825 674 1,557 640 726 774 593 583 1,267 6 Over 10 years......................... 229 388 866 789 1,083' 1,636 664 725 1,230 1,072 1,168 1,229 By type of customer 1 U.S. government securities dealers............................ 1,360 1,267 1,135 1,170 1,617 1,205 1,185 1,530 1,526 1,511 1,740 1,452 8 U.S. government securities brokers........................... 3,407 3,709 3,838 3,651 5,043 5,265 3,038 4,332 5,191 5,118 5,202 5,048 9 Commercial banks................ 2,426 2,295 1,804 1,565 2,095 2,009 1,383 2,201 1,959 2,013 2,077 2,250 10 All others i............................. 3,257 3,568 3,508 3,496 5,525 4,872 3,509 6,300 5,498 4,380 4,973 6,141 11 Federal agency securities 1,548 1,729 1,894 2,099 '2,219 2,615 1,731 2,260 1,868 2,109 2,549 2,521 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 1979 1979, week ending Wednesday Item 1976 1977 1978 Mar. Apr. May Mar. 7 Mar. 14 Mar. 21 Mar. 28 Apr. 4 Apr. 11 Positions2 1 U.S. government securities... 7,592 5,172 2,656 1,849 '4,278 5,260 3,750 2,262 1,270 807 939 6,002 2 Bills........................................ 6,290 4,772 2,452 2,471 4,698 5,094 3,885 2,780 2,097 1,634 2,059 6,460 3 Other within 1 year.............. 188 99 260 -262 -276 -34 -323 -251 -265 -193 -428 -349 4 1-5 years............................... 515 60 -92 -471 -264 -744 -32 -434 -639 -662 -690 -109 5 5-10 years.............................. 402 92 40 -20 -83 377 24 -14 -47 -42 7 -7 6 Over 10 years........................ 198 149 -4 131 202 567 197 181 125 70 -9 8 7 Federal agency securities.... 729 693 606 734 953 1,660 450 789 768 795 990 928 Sources of financing3 8 All sources............................. 8,715 9,877 10,204 12,378 14,680 14,849 14,093 14,287 11,678 10,648 10,951 16,572 Commercial banks 9 New York City..................... 1,896 1,313 599 874 1,266 733 2,366 1,718 347 -362 -50 1,699 10 Outside New York City....... 1,660 1,987 2,174 2,453 2,724 2,839 2,759 2,753 2,378 2,188 2,226 3,478 11 Corporations1....................... 1,479 2,423 2,370 2,748 3,000 2,901 2,555 3,091 2,742 2,774 2,509 3,541 12 All others............................... 3,681 4,155 5,052 6,304 7,690 8,377 6,413 6,727 6,210 6,049 6,265 7,854 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 1979 Agency 1976 1977 1978 Oct. Nov. Dec. Jan. Feb. Mar. 1 Federal and federally sponsored agencies........... 103,325 109,924 131,982 127,468 129,139 131,982 129,849 129,865 129,278 2 Federal agencies.................................................... 21,896 22,760 23,488 23,279 23,073 23,488 23,431 23,485 23,507 3 Defense Department1....................................... 1,113 983 868 897 876 868 864 859 839 4 Export-Import Bank 2 • 3.................................... 7,801 8,671 8,711 8,704 8,392 8,711 8,515 8,499 8,326 5 Federal Housing Administration4................... 575 581 588 598 594 588 582 586 580 6 Government National Mortgage Association participation certificates 5......................... 4,120 3,743 3,141 3,166 3,166 3,141 3,141 3,141 3,141 7 Postal Service®.................................................. 2,998 2,431 2,364 2,364 2,364 2,364 2,364 2,364 2,364 8 Tennessee Valley Authority............................. 5,185 6,015 7,460 7,195 7,325 7,460 7,620 7,690 7,900 9 United States Railway Association®................ 104 336 356 355 356 356 345 346 357 10 Federally sponsored agencies............................... 81,429 87,164 108,494 104,189 106,066 108,494 106,418 106,380 105,771 11 Federal Home Loan Banks............................. 16,811 18,345 27,563 25,395 26,777 27,563 27,677 28,447 28,265 12 Federal Home Loan Mortgage Corporation.. 1,690 1,686 2,262 2,063 2,062 2,262 2,262 2,461 2,333 13 Federal National Mortgage Association........ 30,565 31,890 41,080 39,776 39,814 41,080 41,917 42,405 43,625 14 Federal Land Banks......................................... 17,127 19,118 20,360 20,360 20,360 20,360 19,275 19,275 19,275 15 Federal Intermediate Credit Banks.................. 10,494 11,174 11,469 11,554 11,548 11,469 9,978 8,958 7,890 16 Banks for Cooperatives................................... 4,330 4,434 4,843 4,264 4,668 4,843 4,392 3,852 3,351 17 Student Loan Marketing Association7............ 410 515 915 775 835 915 915 980 1,030 18 Other.................................................................. 2 2 2 2 2 2 2 2 2 Memo items 28,711 38,580 51,298 49,212 49,645 51,298 52,154 53,221 55,310 Lending to federal and federally sponsored agencies 20 Export-Import Bank 3........................................... 5,208 5,834 6,898 6,568 6,568 6,898 6,898 6,898 7,131 21 Postal Service®...................................................... 2,748 2,181 2,114 2,114 2,114 2,114 2,114 2,114 2,114 22 Student Loan Marketing Association7............... 410 515 915 775 835 915 915 980 1,030 3,110 4,190 5,635 5,370 5,500 5,635 5,795 5,865 6,075 24 United States Railway Association®................... 104 336 356 355 356 356 345 346 357 Other lending9 25 Farmers Home Administration........................... 10,750 16,095 23,825 23,050 23,050 23,825 24,445 25,160 25,985 26 Rural Electrification Administration.................. 1,415 2,647 4,604 4,407 4,489 4,604 4,680 4,735 4,962 27 Other...................................................................... 4,966 6,782 6,951 6,573 6,733 6,951 6,962 7,123 7,656 1. Consists of mortages 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 □ July 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 Dec. Jan.r Feb.' Mar.r Apr.r May 35,313 46,769 48,607 3,694 2,831 2,516 4,485 3,067 3,089 Type of issue 2 General obligation................................................................. 18,040 18,042 17,854 1,698 1,304 937 1,034 1,127 1,125 3 Revenue............................................................................ 17,140 28,655 30,658 1,992 1,506 1,575 3,443 1,929 1,962 4 Housing Assistance Administration 2............................................. 133 72 95 4 21 4 8 11 2 Type of issuer 6 State........................................................................................ 7,054 6,354 6,632 497 467 580 435 297 204 15,304 21,717 24,156 2,148 961 1,139 2,832 1,516 1,567 8 Municipalities, counties, townships, school districts.......... 12,845 18,623 17,718 1,043 1,382 793 1,210 1,243 1,316 9 Issues for new capital, total................................................... 32,108 36,189 37,629 3,379 2,802 2,489 4,472 3,039 3,080 Use of proceeds 10 Education............................................................................... 4,900 5,076 5,003 319 485 410 268 426 736 11 Transportation....................................................................... 2,586 2,951 3,460 337 247 207 202 124 117 12 Utilities and conservation...................................................... 9,594 8,119 9,026 705 539 732 1,130 464 535 13 Social welfare......................................................................... 6,566 8,274 10,494 1,126 766 712 1,978 1,303 691 14 Industrial aid.......................................................................... 483 4,676 3,526 276 266 168 260 136 313 7,979 7,093 6,120 616 499 260 634 586 688 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 1979 Type of issue or issuer, 1976 1977 1978r or use Sept. Oct. Nov. Dec. Jan. Feb. 1 All issues 1............................................................................... 53,488 53,792 47,264 3,832 3,685 3,207 4,401 3,668 3,165 2 Bonds....................................................................................... 42,380 42,015 36,906 2,905 2,516 2,481 3,281 3,004 2,252 Type of offering 3 Public...................................................................................... 26,453 24,072 19,815 1,610 1,651 1,608 1,227 1,282 1,336 4 Private placement................................................................... 15,927 17,943 17,091 1,295 865 873 2,054 1,722 916 Industry group 5 Manufacturing........................................................................ 13,264 12,204 9,572 823 405 805 1,031 866 350 6 Commercial and miscellaneous............................................. 4,372 6,234 5,251 454 487 112 694 434 249 7 Transportation....................................................................... 4,387 1,996 2,007 135 67 96 123 111 219 8 Public utility........................................................................... 8,297 8,262 7,111 912 819 384 383 532 517 9 Communication...................................................................... 2,787 3,063 3,373 205 290 456 285 259 558 10 Real estate and financial........................................................ 9,274 10,258 9,596 375 446 627 765 802 359 11 Stocks...................................................................................... 11,108 11,777 10,358 927 1,169 726 1,120 664 913 Type 12 Preferred................................................................................. 2,803 3,916 2,832 127 47 149 424 171 201 13 Common................................................................................. 8,305 7,861 7,526 800 1,122 577 696 493 712 Industry group 14 Manufacturing........................................................................ 2,237 1,189 1,241 148 90 35 42 41 121 15 Commercial and miscellaneous............................................. 1,183 1,834 1,816 168 112 111 303 169 93 16 Transportation....................................................................... 24 456 263 12 0 12 113 17 Public utility........................................................................... 6,121 5,865 5,140 426 800 377 271 358 669 18 Communication...................................................................... 776 1,379 264 10 o 1 175 19 Real estate and financial........................................................ 771 1,049 1,631 164 167 190 216 96 29 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 Nov. Dec. Jan. Feb. Mar. Apr. May Investment Companies1 1 Sales of own shares2........................................ 6,401 6,645 587 602 648 451 523 594 549 2 Redemptions of own shares 3.......................... 6,027 7,231 439 545 607 548 646 761 715 3 357 -586 148 57 41 -97 -123 -175 -166 4 Assets4............................................................... 45,049 44,980 44,242 44,980 46,591 45,016 47,051 47,142 46,431 5 Cash position 5.................................................. 3,274 4,507 4,299 4,507 4,624 4,851 4,746 4,862 4,869 6 Other................................................................. 41,775 40,473 39,943 40,473 41,967 40,165 42,305 42,280 41,562 1. Excluding money market funds. 5. Also includes all U.S. government securities and other short-term 2. Includes reinvestment of investment income dividends. Excludes debt securities. reinvestment of capital gains distributions and share issue of conversions from one fund to another in the same group. Note. Investment Company Institute data based on reports of mem­ 3. Excludes share redemption resulting from conversions from one fund bers, which comprise substantially all open-end investment companies to another in the same group. registered with the Securities and Exchange Commission. Data reflect 4. Market value at end of period, less current liabilities. 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 1979 Account 1976 1977 1978 Q3 Q4 Ql Q2 Q3 Q4 Ql 1 Profits before tax..................................................... 155.9 173.9 202.0 177.5 178.3 172.1 205.5 205.4 224.9 229.8 2 Profits tax liability................................................... 64.3 71.8 83.9 72.8 73.9 70.0 85.0 86.2 94.4 90.2 3 Profits after tax........................................................ 91.6 102.1 118.1 104.7 104.4 102.1 120.5 119.2 130.5 139.6 4 Dividends.................................................................. 37.9 43.7 49.3 44.1 46.3 47.0 48.1 50.1 51.9 54.0 5 Undistributed profits............................................... 53.7 58.4 68.8 60.6 58.1 55.1 72.4 69.1 78.6 85.6 97.1 106.0 114.4 107.6 109.3 111.3 113.3 115.4 117.5 119.6 7 Net cash flow............................................................ 150.8 164.4 r183.2 168.2 167.4 166.4 185.7 184.5 196.1 205.2 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 □ July 1979 1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1977 1978 Account 1975 1976 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 759.0 826.3 844.7 858.5 881.8 900.9 925.1 954.4 993.3 1,028.0 82.1 87.3 81.4 83.3 83.5 94.3 89.0 91.7 92.4 104.0 3 U.S. government securities.................................. 19.0 23.6 24.2 19.9 19.3 18.7 18.6 17.3 16.2 17.8 4 Notes and accounts receivable............................. 272.1 293.3 304.4 313.0 326.9 325.0 337.0 355.5 376.0 381.5 5 Inventories............................................................. 315.9 342.9 353.4 359.9 368.3 375.6 390.1 399.2 415.4 428.0 69.9 79.2 81.3 82.5 83.8 87.3 90.3 90.7 93.3 96.7 451.6 492.7 507.6 514.1 533.2 546.8 573.7 593.6 626.7 662.2 8 Notes and accounts payable................................. 264.2 282.0 290.1 295.9 306.1 313.7 325.5 338.5 357.1 375.6 187.4 210.6 217.5 218.1 227.1 233.1 248.2 255.1 269.6 286.6 10 Net working capital................................................ 307.4 333.6 337.1 344.5 348.6 354.1 351.3 360.8 366.6 365.9 11 Memo: Current ratio1........................................... 1.681 1.677 1.664 1.670 1.654 1.648 1.612 1.608 1.585 1.553 1. Ratio of total current assets to total current liabilities. All data in this table have been revised to reflect the most curren benchmarks. Complete data are available upon request from the Flo\ Note. For a description of this series, see “Working Capital of Non- of Funds Section, Division of Research and Statistics, financial Corporations” in the July 1978 Bulletin, pp. 533-37. Source. Federal Trade Commission. 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 Q4 Ql Q2 Q3 Q4 Qlr Q2r Q32 1 All industries.......................................................... 135.72 153.60 138.11 144.25 150.76 155.41 163.96 165.94 170.30 174.74 Manufacturing 2 Durable goods industries....................................... 27.75 31.59 28.19 28.72 31.40 32.25 33.99 34.00 36.60 38.09 3 Nondurable goods industries................................ 32.33 35.86 33.22 32.86 35.80 35.50 39.26 37.56 39.75 41.80 Nonmanufacturing 4 Mining.................................................................... 4.49 4.81 4.50 4.45 4.81 4.99 4.98 5.46 5.40 5.U Transportation 5 Railroad....................................................... 2.82 3.33 2.80 3.35 3.09 3.38 3.49 4.02 2.76 3.89 6 Air....................................................................... 1.63 2.34 1.76 2.67 2.08 2.20 2.39 3.35 2.92 2.60 7 Other................................................................... 2.55 2.42 2.32 2.44 2.23 2.47 2.55 2.71 2.93 3.01 Public utilities 21.57 24.71 22.05 23.15 23.83 24.92 26.95 27.70 27.63 27.96 9 Gas and other.................................................... 4.21 4.72 4.18 4.78 4.62 4.70 4.78 4.66 4.79 4.83 1 11 0 C Co o m 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 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 2 1 7 8 . . 7 7 3 5 I> A*fnr/ . Dk 11 An 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 1.53 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period 1978 1979 Account 1973 1974 1975 1976 1977 Ql Q2 Q3 Q4 Ql Assets Accounts receivable, gross 1 Consumer............................................................... 35.4 36.1 36.0 38.6 44.0 44.5 47.1 49.7 52.6 54.9 2 Business.................................................................. 32.3 37.2 39.3 44.7 55.2 57.6 59.5 58.3 63.3 66.7 3 Total................................................................... 67.7 73.3 75.3 83.4 99.2 102.1 106.6 108.0 116.0 121.6 4 Less: Reserves for unearned income and losses.. 8.4 9.0 9.4 10.5 12.7 12.8 14.1 14.3 15.6 16.5 5 Accounts receivable, net....................................... 59.3 64.2 65.9 72.9 86.5 89.3 92.6 93.7 100.4 105.1 6 Cash and bank deposits........................................ 2.6 3.0 2.9 2.6 2.6 2.2 2.9 2.7 3.5 7 Securities................................................................ .8 .4 1.0 1.1 .9 1.2 1.3 1.8 1.3 123.8 8 All other................................................................. 10.6 12.0 11.8 12.6 14.3 15.0 16.2 17.1 17.3 73.2 79.6 81.6 89.2 104.3 107.7 112.9 115.3 122.4 128.9 Liabilities 10 Bank loans.............................................................. 7.2 9.7 8.0 6.3 5.9 5.8 5.4 5.4 6.5 6.5 11 Commercial paper.................................................. 19.7 20.7 22.2 23.7 29.6 29.9 31.3 29.3 34.5 38.1 Debt 12 Short-term, n.e.c.................................................... 4.6 4.9 4.5 5.4 6.2 5.3 6.6 6.8 8.1 6.7 13 Long-term, n.e.c..................................................... 24.6 26.5 27.6 32.3 36.0 38.0 40.1 41.3 43.6 44.5 14 Other....................................................................... 5.6 5.5 6.8 8.1 11.5 12.9 13.6 15.2 12.6 15.1 15 Capital, surplus, and undivided profits............... 11.5 12.4 12.5 13.4 15.1 15.7 16.0 17.3 17.2 18.0 73.2 79.6 81.6 89.2 104.3 107.7 112.9 115.3 122.4 128.9 1. Beginning Ql, 1979, asset items on lines 6, 7, and 8 are combined. Note. Components may not add to totals due to rounding. 1.54 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted Changes in accounts Extensions Repayments Accounts receivable receivable Type outstanding April 30, 1979 1979 1979 19791 Feb. Mar. Apr. Feb. Mar. Apr. Feb. Mar. Apr. 1 Total................................................................. 67,646 756 689 937 16,858 17,268 17,722 16,102 16,579 16,785 2 Retail automotive (commercial vehicles)........ 15,262 183 269 60 1,283 1,391 1,210 1,100 1,122 1,150 3 Wholesale automotive..................................... 15,519 655 310 705 7,080 6,745 6,731 6,425 6,435 6,026 4 Retail paper on business, industrial and farm equipment........................................ 16,124 -84 251 -17 1,123 1,130 1,071 1,207 879 1,088 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 2 2 . . . . . } 6,750 -108 -225 78 5,375 5,920 6,228 5,483 6,145 6,150 7 All other business credit.................................. 13,991 110 84 111 1,997 2,082 2,482 1,887 1,998 2,371 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 □ July 1979 1.55 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1978 1979 Item 1976 1977 1978 Nov. Dec. Feb. Mar. Apr. May Terms and yields in primary and secondary markets Primary Markets Conventional mortgages on new homes Terms1 1 Purchase price (thous. dollars)............................... 48.4 54.3 62.6 65.1 68.1 68.3 68.1 '75.4 72.3 2 Amount of loan (thous. dollars)............................ 35.9 40.5 45.9 47.5 49.6 49.5 49.9 '54.9 51.4 3 Loan/price ratio (percent)...................................... 74.2 76.3 75.3 74.4 75.1 74.5 75.4 75.1 73.2 4 Maturity (years)......................................................... 27.2 27.9 28.0 27.9 28.1 28.6 28.5 '29.0 28.2 5 Fees and charges (percent of loan amount)2........ 1.44 1.33 1.39 1.40 1.49 1.56 rl .65 '1.75 1.59 6 Contract rate (percent per annum)...................... 8.76 8.80 9.30 9.63 9.76 9.94 10.02 '10.06 10.20 Yield (percent per annum) 7 FHLBB series3........................................................... 8.99 9.01 9.54 9.87 10.02 10.20 10.30 '10.36 10.47 8 HUD series4............................................................... 8.99 8.95 9.68 10.10 10.30 10.35 10.35 10.55 10.80 Secondary Markets Yield (percent per annum) 9 FHA mortgages (HUD series)*............................. 8.82 8.68 9.70 9.99 10.16 10.17 10.19 n.a. 10.61 10 GNMA securities6..................................................... 8.17 8.04 8.98 9.39 9.54 9.67 9.70 9.79 9.89 FNMA auctions7 8.99 8.73 9.77 10.30 10.50 10.54 10.42 10.59 10.84 9.11 8.98 10.01 10.56 10.85 11.04 10.94 11.03 11.35 Activity in secondary markets Federal National Mortgage Association Mortgage holdings (end of period) 13 Total............................................................................. 32,904 34,370 43,311 42,590 43,311 45,155 '46,410 47,028 47,757 18,916 18,457 21,243 20,929 21,243 21,967 22,601 22,773 23,008 15 VA-guaranteed....................................................... 9,212 9,315 10,544 10,535 10,544 10,606 10,616 10,591 10,543 4,776 6,597 11,524 11,126 11,524 12,582 13,193 13,664 14,206 Mortgage transactions (during period) 3,606 4,780 12,303 920 974 1,173 1,291 883.2 1,022.9 86 67 5 0 0 0 0 0 0 Mortgage commitments9 6,247 9,729 18,960 1,275 1,051 388 565 1,075 1,400 3,398 4,698 9,201 9,525 9,201 7,381 6,573 6,656 6,862 Auction of 4-month commitments to buy Government-underwritten loans 21 Offered?................................................................... 4,929.8 7,974.1 12,978 788.0 627.0 210.6 '508.4 1,322.7 426.3 2,787.2 4,846.2 6,747.2 321.8 319.6 161.2 284.4 638.5 185.0 Conventional loans 23 Offered 9................................................................... 2,595.7 5,675.2 9,933.0 861.4 417.4 63.0 144.9 661.9 458.6 1,879.2 3,917.8 5,110.9 386.8 220.9 45.4 113.5 363.6 214.3 Federal Home Loan Mortgage Corporation Mortgage holdings (end of period)10 25 Total............................................................................. 4,269 3,276 3,064 3,022 3,064 3,207 3,510 3,377 3,310 26 FHA/VA................................................................. 1,618 1,395 1,243 1,257 1,243 1,220 1,260 1,198 1,186 2,651 1,881 1,822 1,766 1,822 1,989 2,250 2,180 2,124 Mortgage transactions (during period) 1,175 3,900 6,524 763 596 300 350 358 560 1,396 4,131 6,211 581 540 r494 116 364 572 Mortgage commitments11 1,477 5,546 7,451 706 455 357 547 540 652 333 1,063 1,410 1,617 1,410 1,177 1,342 1,487 1,541 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 participation 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 1.56 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1978 1979 Type of holder, and type of property 1975 1976 1977 1978 Q2 Q3 Q4 Ql 1 All holders................................................ 801,537 889,327 1,023,505 1,172,502 1,092,451 1,133,699 1,172,502 1,204,762 490,761 556,557 656,566 761,905 706,230 r734,740 761,905 783,500 3 Multifamily................................................ 100,601 104,516 111,841 122,004 116,419 r119,442 122,004 124,125 4 Commercial............................................... 159,298 171,223 189,274 212,597 198,926 '205,744 212,597 218,042 5 Farm.......................................................... 50,877 57,031 65,824 75,996 70,876 73,773 75,996 79,095 6 Major financial institutions..................... 581,193 647,650 745,011 847,910 794,009 822,184 847,910 865,808 7 Commercial banks1.................................. 136,186 151,326 178,979 213,963 194,469 205,445 213,963 220,063 77,018 86,234 105,115 126,966 115,389 121,911 126,966 130,585 5,915 8,082 9,215 10,912 9,925 10,478 10,912 11,223 46,882 50,289 56,898 67,056 60,950 64,386 67,056 68,968 6,371 6,721 7,751 9,029 8,205 8,670 9,029 9,287 12 Mutual savings banks............................... 77,249 81,639 88,104 95,157 91,535 93,403 95,157 96,136 13 1- to 4-family......................................... 50,025 53,089 57,637 62,252 59,882 61,104 62,252 62,892 13,792 14,177 15,304 16,529 15,900 16,224 16,529 16,699 15 Commercial........................................... 13,373 14,313 15,110 16,319 15,698 16,019 16,319 16,488 16 Farm...................................................... 59 60 53 57 55 56 57 57 17 Savings and loan associations................. 278,590 323,130 381,163 432,858 407,965 420,971 432,858 441,420 223,903 260,895 310,686 356,156 334,164 r345,617 356,156 363,200 25,547 28,436 32,513 36,057 34,351 '35,362 36,057 36,770 20 - Commercial........................................... 29,140 33,799 37,964 40,645 39,450 '39,992 40,645 41,450 21 Life insurance companies......................... 89,168 91,555 96,765 105,932 100,040 102,365 105,932 108,189 22 1- to 4-family......................................... 17,590 16,088 14,727 14,449 14,129 14,189 14,449 14,757 23 Multifamily............................................ 19,629 19,178 18,807 19,026 18,745 18,803 19,026 19,431 24 Commercial........................................... 45,196 48,864 54,388 62,086 57,463 59,268 62,086 63,409 25 Farm...................................................... 6,753 7,425 8,843 10,371 9,703 10,105 10,371 10,592 26 Federal and related agencies................... 66,891 66,753 70,006 81,853 73,991 78,672 81,853 86,689 27 Government National Mortgage Assn... 7,438 4,241 3,660 3,509 3,283 3,560 3,509 3,448 28 1- to 4-family......................................... 4,728 1,970 1,548 877 922 897 877 821 29 Multifamily............................................ 2,710 2,271 2,112 2,632 2,361 2,663 2,632 2,627 30 Farmers Home Administration............... 1,109 1,064 1,353 926 618 1,384 926 956 31 1- to 4-family......................................... 208 454 626 288 124 460 288 302 32 Multifamily............................................ 215 218 275 320 102 240 320 180 33 Commercial........................................... 190 72 149 101 104 251 101 283 34 Farm...................................................... 496 320 303 217 288 433 217 191 35 Federal Housing and Veterans Admin... 4,970 5,150 5,212 5,419 5,225 5,295 5,419 5,522 36 1- to 4-family......................................... 1,990 1,676 1,627 1,641 1,543 1,565 1,641 1,693 37 Multifamily............................................ 2,980 3,474 3,585 3,778 3,682 3,730 3,778 3,829 38 Federal National Mortgage Association. 31,824 32,904 34,369 43,311 38,753 41,189 43,311 46,410 39 1- to 4-family......................................... 25,813 26,934 28,504 37,579 32,974 35,437 37,579 40,702 40 Multifamily............................................ 6,011 5,970 5,865 5,732 5,779 5,752 5,732 5,708 41 Federal Land Banks................................. 16,563 19,125 22,136 25,624 23,857 24,758 25,624 26,893 42 1- to 4-family......................................... 549 601 670 927 727 819 927 1,042 43 Farm...................................................... 16,014 18,524 21,466 24,697 23,130 23,939 24,697 25,851 44 Federal Home Loan Mortgage Corp....... 4,987 4,269 3,276 3,064 2,255 2,486 3,064 3,460 45 1- to 4-family......................................... 4,588 3,889 2,738 2,407 1,856 1,994 2,407 2,685 399 380 538 657 399 492 657 775 47 Mortgage pools or trusts2....................... 34,138 49,801 70,289 88,633 78,602 '82,730 88,633 94,551 48 Government National Mortgage Assn... 18,257 30,572 44,896 24,347 48,032 50,844 54,347 57,955 49 1- to 4-family......................................... 17,538 29,583 43,555 52,732 46,515 49,276 52,732 56,269 50 Multifamily............................................ 719 989 1,341 1,615 1,517 1,568 1,615 1,686 51 Federal Home Loan Mortgage Corp....... 1,598 2,671 6,610 11,892 9,423 '10,511 11,892 12,467 52 1- to 4-family......................................... 1,349 2,282 5,621 9,657 7,797 '8,616 9,657 10,088 53 Multifamily............................................ 249 389 989 2,235 1,626 '1,895 2,235 2,379 54 Farmers Home Administration............... 14,283 16,558 18,783 22,394 21,147 '21,375 22,394 24,129 55 1- to 4-family......................................... 9,194 10,219 11,379 13,400 12,742 '12,851 13,400 13,883 56 Multifamily............................................ 295 532 759 1,116 1,128 '1,116 1,116 1,465 57 Commercial........................................... 1,948 2,440 2,945 3,560 3,301 '3,369 3,560 3,660 58 Farm...................................................... 2,846 3,367 3,682 4,318 3,976 '4,039 4,318 5,121 59 Individuals and others 3........................... 119,315 125,123 138,199 154,106 145,849 150,113 154,106 157,714 60 1- to 4-family............................................ 56,268 62,643 72,115 82,574 77,466 80,004 82,574 84,806 61 Multifamily............................................... 22,140 20,420 20,538 21,395 20,904 21,119 21,395 21,645 62 Commercial............................................... 22,569 21,446 21,820 212,830 21,960 22,459 22,830 23,267 63 Farm.......................................................... 18,338 20,614 23,726 27,307 25,519 26,531 27,307 27,996 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 the 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, when required, are estimated mainly by the Federal Reserve. Multi­ noninsured pension funds, credit unions, and U.S. agencies for which family 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 □ July 1979 1.57 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change Millions of dollars 1978 1979 Holder, and type of credit 1976 1977 1978 Nov. Jan. Feb. Mar. Apr. May Amounts outstanding (end of period) 1 Total............................... 193,977 230,829 275,640 269,445 275,640 275,346 275,818 278,347 r282,395 287,595 By major holder 2 Commercial banks........ 93,728 112,373 136,189 133,908 136,189 136,452 136,671 137,445 *•139,772 142,050 3 Finance companies........ 38,919 44,868 54,309 53,099 54,309 55,004 55,728 56,885 58,225 59,967 4 Credit unions................. 31,169 37,605 45,939 45,305 45,939 45,526 45,661 46,301 46,322 46,832 5 Retailers2......................... 19,260 23,490 24,876 23,006 24,876 23,962 23,246 22,929 23,097 23,421 6 Savings and loans.......... 6,246 7,354 8,394 8,291 8,394 8,427 8,488 8.671 8,833 9,066 7 Gasoline companies 2,830 2,963 3,240 3.173 3.240 3,338 3,274 3,292 3,383 3,537 8 Mutual savings banks.., 1,825 2,176 2,693 2.663 2.693 2,637 2,750 2,824 2,763 2,722 By major type of credit 9 Automobile.................... 67,707 82,911 102,468 101,565 102,468 102,890 103,780 105,426 *•107,115 109,161 10 Commercial banks.., 39,621 49,577 60,564 60,347 60,564 60,682 61,053 61,742 *■62,795 63,841 11 Indirect paper 22,072 27,379 33,850 33,709 33,850 33,928 34,261 34,592 35,251 35,869 12 Direct loans........... 17,549 22,198 26,714 26,638 26,714 26,754 26,792 27,150 27,544 27,972 13 Credit unions............. 15,238 18,099 21,976 21,664 21,967 21,769 21,834 22,140 22,150 22,394 14 Finance companies.., 12,848 15,235 19,937 19,554 19,937 20,439 20,893 21,544 22,170 22,926 15 Revolving..................... 17,189 39,274 47,051 43,523 47,051 46,516 45,586 45,240 *•45,781 46,487 16 Commercial banks.. 14,359 18,374 24,434 22,724 24,434 24,677 24,502 24,442 24,767 25,052 17 Retailers................... 17,937 19,377 17,626 19,377 18,501 17,810 17,506 17,631 17,898 18 Gasoline companies. 2,830 2,963 3,240 3.173 3.240 3,338 3,274 3,292 3,383 3,537 19 Mobile home............. 14,573 15,141 16,042 16,017 16,042 16,004 16,008 16,092 *•16,198 16,453 20 Commercial banks. 8,737 9,124 9,553 9,572 9,553 9,511 9,495 9,509 *•9,549 9,702 21 Finance companies. 3,263 3,077 3,152 3,150 3,152 3,149 3,147 3,148 3,159 3,177 22 Savings and loans.. 2,241 2,538 2,848 2,813 2,848 2,859 2,880 2,942 2,997 3,076 23 Credit unions.......... 332 402 489 482 489 485 486 493 493 498 24 Other................................ 94,508 93,503 110,079 108,340 110,079 109,936 110,444 111,589 113,301 115,494 25 Commercial banks___ 31,011 35,298 41,638 41,265 41,638 41,582 41,621 41,752 42,661 43,455 26 Finance companies___ 22,808 26,556 31,220 30,395 31,220 31,416 31,688 32,193 32,896 33,864 27 Credit unions............... 15,599 19,104 23,483 23,159 23,483 23,272 23,341 23,668 23,679 23,940 28 Retailers...................... 19,260 5,553 5,499 5,380 5,499 5,461 5,436 5,423 5,466 5,523 29 Savings and loans........ 4,005 4,816 5,546 5,478 5,546 5,568 5,608 5,729 5,836 5,990 30 Mutual savings banks. 1,825 2,176 2,693 2.663 2.693 2,637 2,750 2,824 2,763 2,722 Net change (during period 3) 31 Total.................................................... 21,647 35,278 45,066 3,834 4,400 3,061 3,308 3,731 *"4,038 3,732 By major holder 32 Commercial banks............................. 10,792 18,645 24,058 1,660 2,080 1,330 1,630 1,465 *•2,050 1,662 33 Finance companies............................. 2,946 5,948 9,441 1,018 1,098 1,341 1,205 1,334 1,377 1,322 34 Credit unions...................................... 5,503 6,436 8,334 779 773 360 402 528 139 124 35 Retailers1............................................ 1,059 2,654 1,386 186 196 -90 -221 143 306 283 36 Savings and loans............................... 1,085 1,111 1,041 88 115 67 86 173 158 280 37 Gasoline companies........................... 124 132 276 -1 96 100 68 20 73 96 38 Mutual savings banks......................... 138 352 530 104 42 -47 138 68 -65 -35 By major type of credit 39 Automobile......................................... 10,465 15,204 19,557 1,755 1,780 1,680 1,565 1,486 *•1,319 1,225 40 Commercial banks.......................... 6,334 9,956 10,987 839 845 633 739 617 *•672 633 41 Indirect paper............................. 2,742 5,307 6,471 440 530 387 530 290 409 397 42 Direct loans................................. 3,592 4,649 4,516 399 315 246 209 327 263 236 43 Credit unions................................... 2,497 2,861 3,868 364 391 187 190 245 64 60 44 Finance companies......................... 1,634 2,387 4,702 552 544 860 636 624 583 532 45 Revolving............................................ 2,170 6,248 7,776 665 869 433 317 742 *•918 746 46 Commercial banks.......................... 2,046 4,015 6,060 556 610 375 492 588 605 415 47 Retailers.......................................... 2,101 1,440 110 163 -42 -243 134 240 235 48 Gasoline companies....................... 124 132 276 -1 96 100 68 20 73 96 49 Mobile home...................................... 140 565 897 75 71 40 56 108 84 235 50 Commercial banks.......................... 70 387 426 19 21 12 15 31 22 125 51 Finance companies......................... -182 -189 74 15 11 7 9 11 7 14 52 Savings and loans........................... 192 297 310 34 30 19 28 59 56 94 53 Credit unions................................... 60 70 87 7 9 2 4 7 -1 2 54 Other.................................................... 8,872 13,261 16,836 1,339 1,680 908 1,370 1,395 *•1,717 1,526 55 Commercial banks.......................... 2,342 4,287 6,585 246 604 310 384 229 r751 489 1,494 3,750 4,665 451 543 474 560 699 787 776 57 Credit unions................................... 2,946 3,505 4,379 408 373 171 208 276 76 62 58 Retailers......................................... 1,059 553 -54 76 33 -48 22 9 66 48 59 Savings and loans........................... 893 814 731 54 85 48 58 114 102 186 60 Mutual savings banks..................... 138 352 530 104 42 -47 138 68 -65 -35 1. The Board’s series cover most short- and intermediate-term credit Note. Total consumer nomnstallment 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 repayment) 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. 3. Net change equals extensions minus liquidations (repayments, chargeoffs, and other credits); figures for all months are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Debt A43 1.58 CONSUMER INSTALLMENT CREDIT Extensions and Liquidations Millions of dollars 1978 1979 Holder, and type of credit 1976 1977 1978 Nov. Dec. Jan. Feb. Mar. Apr. May Extensions2 1 Total.................................................... 211,028 254,071 298,574 26,219 26,500 25,544 26,202 26,698 '26,889 28,027 By major holder 2 Commercial banks.............................. 97,397 117,896 142,965 12,481 12,521 12,153 12,430 12,412 '12,958 13,499 3 Finance companies............................. 36,129 41,989 50,483 4,512 4,679 4,547 4,822 5,123 5,271 5,213 4 Credit unions....................................... 29,259 34,028 40,023 3,530 3,526 3,241 3,238 3,250 2,753 3.124 5 Retailers i............................................ 29,447 39,133 41,619 3,571 3,612 3,565 3,460 3,611 3,742 3,721 6 Savings and loans............................... 3,898 4,485 5,050 489 516 481 468 583 559 723 7 Gasoline companies........................... 13,387 14,617 16,125 1,376 1,451 1,440 1,486 1,493 1,505 1,613 8 Mutual savings banks......................... 1,511 1,923 2,309 260 195 117 298 226 101 134 By major type of credit 9 Automobile......................................... 63,743 75,641 88,986 7,787 7,833 7,545 7,756 7,797 '7,845 8,227 10 Commercial banks......................... 37,886 46,363 53,028 4,503 4,443 4,286 4,430 4,424 4,553 4,648 11 Indirect paper............................. 20,576 25,149 29,336 2,422 2,451 2,318 2,472 2,449 2,630 2,541 12 Direct loans................................. 17,310 21,214 23,692 2,081 1,992 1,968 1,958 1,975 1,923 2,107 13 Credit unions................................... 14,688 16,616 19,486 1,718 1,738 1,635 1,624 1,587 1,415 1,566 14 Finance companies......................... 11,169 12,662 16,472 1,566 1,652 1,624 1,702 1,786 1,877 2,013 15 Revolving............................................ 43,934 86,756 104,587 9,176 9,424 9,417 9,357 9,714 '9,722 10,170 16 Commercial banks......................... 30,547 38,256 51,531 4,702 4,814 4,799 4,860 5,024 '4,923 5,285 17 Retailers.......................................... 33,883 36j931 3,098 3,159 3,178 3,011 3,197 3 294 3 272 18 Gasoline companies....................... 13,387 14,617 16,125 1,376 1,451 1,440 1,486 1,493 1,505 1,613 19 Mobile home....................................... 4,859 5,425 6,067 486 502 369 454 516 '502 659 20 Commercial banks.......................... 3,064 3,466 3,704 280 295 235 295 296 '305 411 21 Finance companies......................... 702 643 886 77 74 33 60 61 50 49 22 Savings and loans........................... 929 1,120 1,239 108 111 88 81 139 134 182 23 Credit unions................................... 164 196 238 21 22 13 18 20 13 17 24 Other.................................................... 98,492 86,249 98,934 8,500 8,741 8,213 8,635 8,671 8,820 8,971 25 Commercial b a n k s ............ 25,900 29,811 34,702 2,726 2,969 2,833 2,845 2,668 3,177 3,155 26 Finance companies......................... 24,258 28,684 33,125 2,869 2,953 2,890 3,060 3,276 3,344 3,151 27 Credit unions................................... 14,407 17,216 20,299 1,791 1,766 1,593 1,596 1,643 1,325 1,541 28 Retailers.......................................... 29,447 5,250 4,688 473 453 387 449 414 448 449 29 Savings and loans........................... 2,969 3,365 3,811 381 405 393 387 444 425 541 30 Mutual savings banks..................... 1,511 1,923 2,309 260 195 117 298 226 101 134 Liquidations 2 31 Total.................................................... 189,381 218,793 253,508 22,115 22,100 22,483 22,894 22,967 '22,851 24,295 By major holder 32 Commercial banks............................. 86,605 99,251 118,907 10,551 10,441 10,823 10,800 10,947 '10,908 11,837 33 Finance companies............................. 33,183 36,041 41,042 3,494 3,581 3,206 3,617 3,789 3,894 3,891 34 Credit unions...................................... 23,756 27,592 31,689 2,751 2,753 2,881 2,836 2,722 2,614 3,000 35 Retailers1............................................ 28,388 36,479 40,233 3,385 3,416 3,655 3,681 3,468 3,436 3,438 36 Savings and loans............................... 2,813 3,374 4,009 401 401 414 382 4!0 401 443 37 Gasoline companies........................... 13,263 14,485 15,849 1,377 1,355 1,340 1,418 1,473 1,432 1,517 38 Mutual savings banks........................ 1,373 1,571 1,779 156 153 164 160 158 166 169 By major type of credit 39 Automobile......................................... 53,278 60,437 69,429 6,032 6,053 5,865 6,191 6,311 '6,526 7,002 40 Commercial banks.......................... 31,552 36,407 42,041 3,664 3,598 3,653 3,691 3,807 3,881 4,015 41 Indirect paper............................. 17,834 19,842 22,865 1,982 1,921 1,931 1,942 2,159 2,221 2,144 42 Direct loans................................ 13,718 16,565 19,176 1,682 1,677 1,722 1,749 1,648 1,660 1,871 43 Credit unions................................... 12,191 13,755 15,618 1,354 1,347 1,448 1,434 1,342 1,351 1,506 44 Finance companies......................... 9,535 10,275 11,770 1,014 1,108 764 1,066 1,162 1,294 1,481 45 Revolving............................................ 41,764 80,508 96,811 8,511 8,555 8,984 9,040 8,972 '8,804 9,424 46 Commercial banks.......................... 28,501 34,241 45,471 4,146 4,204 4,424 4,368 4,436 4,318 4,870 47 Retailers.......................................... 31,782 35,491 2,988 2,996 3,220 3,254 3,063 3,054 3,037 48 Gasoline companies....................... 13,263 14,485 15,849 1,377 1,355 1,340 1,418 1,473 1,432 1,517 49 Mobile home...................................... 4,719 4,860 5,170 411 431 329 398 408 '418 424 50 Commercial banks......................... 2,994 3,079 3,278 261 274 223 280 265 '283 286 51 Finance companies......................... 884 832 812 62 63 26 51 50 43 35 52 Savings and loans........................... 737 823 929 74 81 69 53 80 78 88 53 Credit unions.................................. 104 126 151 14 13 11 14 13 14 15 54 Other................................................... 89,620 72,988 82,098 7,161 7,061 7,305 7,265 7,276 '7,103 7,445 55 Commercial banks.......................... 23,558 25,524 28,117 2,480 2,365 2,523 2,461 2,439 2,426 2,666 56 Finance companies......................... 22,764 24,934 28,460 2,418 2,410 2,41t> 2,500 2,577 2,557 2,375 57 Credit unions.................................. 11,461 13,711 15,920 1,383 1,393 1,422 1,388 1,367 1,249 1,479 58 Retailers.......................................... 28,388 4,697 4,742 397 420 435 427 405 382 401 59 Savings and loans........................... 2,076 2,551 3,080 327, 320 345 329 330 323 355 60 Mutual savings banks..................... 1,373 1,571 1,779 156 153 164 160 158 166 169 1 Includes auto dealers and excludes 30-day charge credit held by 2 Monthly figures are seasonally adjusted, travel and entertainment companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Financial Statistics □ July 1979 1.59 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........................................ 203.8 188.8 208.1 272.5 340.5 395.6 259.6 285.6 302.2 378.9 377.8 413.8 2 Excluding equities.................................... 196.1 184.9 198.0 261.7 337.4 393.6 245.9 277.5 301.0 373.8 376.4 411.0 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 58.8 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....................... 195.5 177.0 122.7 203.5 283.8 342.0 186.0 221.0 259.6 307.9 319.0 365.2 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 2.8 8 Debt instruments......................................... 187.9 173.1 112.6 192.6 280.6 339.9 172.4 213.0 258.5 302.8 317.6 362.4 9 Private domestic nonfinancial sectors. . • • 189.3 161.6 109.5 182.8 271.4 312.4 168.5 197.2 252.1 290.7 301.4 323.7 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 99.6 172.3 268.7 309.8 155.2 189.5 251.6 285.8 299.2 320.7 12 Debt capital instruments..................... 105.0 98.0 97.8 126.8 181.1 198.6 117.8 135.9 163.4 198.9 185.5 211.6 13 State and local obligations.............. 14.7 16.5 15.6 19.0 29.2 30.1 19.3 18.7 29.3 29.0 28.6 31.6 14 Corporate bonds............................... 9.2 19.7 27.2 22.8 21.0 20.1 22.2 23.5 16.0 26.0 18.9 21.3 Mortgages 15 Home............................................. 46.4 34.8 39.5 63.7 96.4 104.6 56.9 70.5 88.5 104.2 99.2 110.1 16 Multifamily residential................. 10.4 6.9 * 1.8 7.4 10.2 .6 3.1 6.4 8.4 9.2 11.2 17 Commercial................................... 18.9 15.1 11.0 13.4 18.4 23.3 13.8 12.9 14.2 22.6 20.4 26.1 18 Farm.............................................. 5.5 5.0 4.6 6.1 8.8 10.2 4.9 7.3 8.9 8.7 9.3 11.2 19 Other debt instruments........................ 76.4 59.6 1.8 45.5 87.6 111.3 37.4 53.6 88.2 86.9 113.7 109.1 20 Consumer credit............................... 23.8 10.2 9.4 23.6 35.0 49.9 22.9 24.3 35.7 34.4 49.4 50.7 21 Bank loans n.e.c................................ 39.8 29.0 -14.0 3.5 30.6 35.6 -2.7 9.6 34.0 27.2 41.1 30.2 22 Open market paper.......................... 2.5 6.6 -2.6 4.0 2.9 5.2 5.6 2.4 3.5 2.4 5.2 5.2 23 Other.................................................. 10.3 13.7 9.0 14.4 19.0 20.6 11.6 17.3 15.0 23.0 18.0 23.1 24 By borrowing sector................................. 189.3 161.6 109.5 182.8 271.4 312.4 168.5 197.2 252.1 290.7 301.4 323.7 25 State and local governments............... 13.2 15.5 13.2 18.5 25.9 25.5 17.6 19.5 22.7 29.0 21.8 29.2 26 Households........................................... 80.9 49.2 48.6 89.9 139.6 161.2 82.7 97.1 131.2 148.0 154.6 168.0 27 Farm...................................................... 9.7 7.9 8.7 11.0 14.7 16.8 9.9 12.1 15.5 13.8 14.6 19.1 28 Nonfarm noncorporate....................... 12.8 7.4 2.0 5.2 12.6 17.7 4.0 6.4 12.8 12.3 20.4 15.3 29 Corporate.............................................. 72.7 81.8 37.0 58.2 78.7 91.2 54.3 62.2 69.8 87.6 90.1 92.2 30 Foreign...................................................... 6.2 15.3 13.2 20.7 12.3 29.5 17.5 23.8 7.5 17.2 17.6 41.5 31 Corporate equities................................... -.2 -.2 .2 .3 .4 -.5 .3 .3 .6 .2 -.8 -.2 32 Debt instruments..................................... 6.4 15.6 13.0 20.4 11.9 30.1 17.2 23.5 6.9 17.0 18.4 41.7 33 Bonds.................................................... 1.0 2.1 6.2 8.5 5.0 3.9 7.4 9.7 4.4 5.6 4.9 2.9 34 Bank loans n.e.c................................... 2.8 4.7 3.7 6.6 1.6 15.8 5.4 7.9 -3.2 6.4 6.3 25.2 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 3.8 2.9 3.6 3.1 2.9 3.6 4.0 Financial sectors 37 Total funds raised........................................ 57.6 36.4 11.7 29.2 58.8 95.2 27.9 30.5 61.5 56.2 103.0 87.3 By instrument 38 U.S. government related............................. 19.9 23.1 13.5 18.6 26.3 41.4 18.2 19.0 25.0 27.5 41.5 41.3 39 16.3 16.6 2.3 3.3 7.0 23.1 4.1 2.6 9.5 4.4 24.9 21.2 40 Mortgage pool securities......................... 3.6 5.8 10.3 15.7 20.5 18.3 14.2 17.2 17.9 23.1 16.6 20.1 41 Loans from U.S. eovemment................. .7 .9 -.4 -1.2 * -.7 -2.3 0 42 Private financial sectors............................... 37.7 13.3 -1.9 10.6 32.6 53.7 9.7 11.5 36.5 28.7 61.5 46.0 43 Corporate equities................................... 1.5 .3 .6 1.0 .6 .5 -.2 2.3 .5 .7 1.0 -.1 44 Debt instruments..................................... 36.2 13.0 -2.5 9.6 32.0 53.3 10.0 9.2 36.0 28.0 60.5 46.0 45 Corporate bonds................................... 3.5 2.1 2.9 5.8 10.1 7.5 6.4 5.2 10.1 10.1 8.4 6.6 46 Mortgages............................................. -1.2 -1.3 2.3 2.1 3.1 .9 1.5 2.7 3.3 2.9 2.3 -.4 47 Bank loans n.e.c................................... 8.9 4.6 -3.6 -3.7 * 1.6 -2.6 -4.8 -2.3 2.3 .6 2.7 48 Open market paper and RPs.............. 17.8 .9 -.1 7.3 14.4 30.7 6.2 8.5 21.4 7.4 35.2 26.2 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 50 Sponsored credit agencies........................... 16.3 17.3 3.2 2.9 5.8 23.1 4.0 1.8 7.1 4.4 24.9 21.2 51 Mortgage pools............................................ 3.6 5.8 10.3 15.7 20.5 18.3 14.2 17.2 17.9 23.1 16.6 20.1 52 Private financial sectors............................... 37.7 13.3 -1.9 10.6 32.6 53.7 9.7 111.5 36.5 28.7 61.5 46.0 53 Commercial banks................................... 14.1 -5.6 -1.4 7.5 4.8 7.4 9.0 6.0 10.0 -.4 12.5 2.4 54 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 13.2 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 19.8 6.0 6.9 17.4 16.4 18.4 21.3 58 REITs....................................................... 6.5 .6 -1.4 -2.4 -2.4 -1.2 -2.1 -2.7 -2.5 -2.2 -1.2 -1.2 59 Open-end investment companies............ -1.2 -.7 -.1 -1.0 -1.0 -1.1 -2.4 .4 -.8 -1.2 -.6 -1.5 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................ 261.4 225.1 219.8 301.7 399.4 490.8 287.5 316.0 363.7 435.0 480.8 501.1 62 Investment company shares........................ -1.2 -.7 -.1 -1.0 -1.0 -1.1 -2.4 .4 -.8 -1.2 -.6 -1.5 63 Other corporate equities.............................. 10.4 4.8 10.8 12.9 4.8 3.6 15.8 9.9 2.5 7.0 3.0 4.3 64 Debt instruments......................................... 252.3 221.0 209.1 289.8 395.6 488.2 274.1 305.7 362.0 429.2 478.4 498.4 65 U.S. government securities...................... 28.3 34.3 98.2 88.1 84.3 95.2 91.9 84.3 70.0 98.6 100.4 90.0 66 State and local obligations...................... 14.7 16.5 15.6 19.0 29.2 31.5 19.3 18.7 29.3 29.0 28.6 31.6 67 Corporate and foreign bonds................. 13.6 23.9 36.4 37.2 36.1 31.2 36.1 38.4 30.5 41.7 32.2 30.8 68 Mortgages................................................. 79.9 60.5 57.2 87.1 134.0 149.2 77.7 96.4 121.2 146.7 140.2 158.2 69 Consumer credit....................................... 23.8 10.2 9.4 23.6 35.0 49.9 22.9 24.3 35.7 34.4 49.4 50.7 70 Bank loans n.e.c....................................... 51.6 38.3 -13.9 6.4 32.2 53.0 .1 12.6 28.4 35.9 47.9 58.1 71 Open market paper and RPs.................. 21.2 14.8 -2.4 13.3 19.8 42.5 13.3 13.3 27.6 11.9 44.0 41.0 72 Other loans............................................... 19.1 22.6 8.7 15.3 25.1 36.9 12.9 17.7 19.2 31.0 35.7 38.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A45 1.60 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............................... 196.1 184.9 198.0 261.7 337.4 393.6 245.9 277.5 301.0 373.8 376.4 411.0 By public agencies and foreign 2 Total net advances....................................... 34.1 52.6 44.3 54.5 85.4 109.4 49.7 59.3 69.3 101.6 103.7 115.1 3 U.S. government securities.................... 9.5 11.9 22.5 26.8 40.2 43.9 24.4 29.3 27.2 53.2 42.7 45.0 4 Residential mortgages............................. 8.2 14.7 16.2 12.8 20.4 26.5 11.8 13.7 20.0 20.9 23.5 29.5 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 26.6 15.0 18.8 18.6 22.4 23.5 29.7 Totals advanced, by sector 7 U.S. government......................................... 2.8 9.7 15.1 8.9 11.8 18.6 6.3 11.5 6.1 17.6 19.5 17.7 8 Sponsored credit agencies........................... 21.4 25.6 14.5 20.6 26.9 46.0 20.0 21.2 26.7 27.2 44.9 47.1 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 37.8 9.7 20.6 26.4 52.7 26.3 49.2 11 Agency borrowing not included in line 1.. 19.9 23.1 13.5 18.6 26.3 41.4 18.2 19.0 25.0 27.5 41.5 41.3 Private domestic funds advanced 12 Total net advances....................................... 182.0 155.3 167.3 225.7 278.2 325.6 214.4 237.1 256.8 299.7 314.3 337.2 13 U.S. government securities.................... 18.8 22.4 75.7 61.3 44.1 51.3 67.5 55.1 42.8 45.4 57.7 44.9 14 State and local obligations...................... 14.7 16.5 15.6 19.0 29.2 30.1 19.3 18.7 29.3 29.0 28.6 31.6 15 Corporate and foreign bonds................. 10.0 20.9 32.8 30.5 22.3 22.3 28.6 32.3 17.2 27.3 22.3 22.4 16 Residential mortgages.............................. 48.4 26.9 23.2 52.7 83.2 88.3 45.6 59.7 74.9 91.6 84.9 91.7 17 Other mortgages and loans..................... 97.2 75.4 16.1 60.4 103.7 146.0 51.9 68.9 96.0 111.5 134.9 157.4 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............................. 165.4 126.2 119.9 191.2 249.6 288.5 174.4 207.9 241.1 258.0 282.7 294.4 20 Commercial banking................................ 86.5 64.5 27.6 58.0 85.8 121.9 46.6 69.4 81.1 90.5 119.5 124.3 21 Savings institutions.................................. 36.9 26.9 52.0 71.4 84.8 78.2 70.5 72.4 85.3 84.3 77.5 78.9 22 Insurance and pension funds.................. 23.9 30.0 41.5 51.7 62.0 70.1 53.2 50.2 60.3 63.7 68.8 71.3 23 Other finance............................................ 18.0 4.7 -1.1 10.1 16.9 18.4 4.2 15.9 14.5 19.4 16.9 19.9 24 Sources of funds........................................... 165.4 126.2 119.9 191.2 249.6 288.5 174.4 207.9 241.1 258.0 282.7 294.4 25 Private domestic deposits........................ 86.6 69.4 90.6 121.5 136.0 131.4 108.3 134.6 127.0 145.0 120.0 142.8 26 Credit market borrowing......................... 36.2 13.0 -2.5 9.6 32.0 53.3 10.0 9.2 36.0 28.0 60.5 46.0 27 Other sources............................................ 42.5 43.8 31.9 60.1 81.6 103.9 56.1 64.1 78.2 85.1 102.2 105.6 28 Foreign funds....................................... 5.8 16.8 .9 5.1 11.6 12.7 .7 9.5 .7 22.4 4.0 21.4 29 Treasury balances................................. -1.0 -5.1 -1.7 -.1 4.3 8.1 2.3 -2.5 -1.8 10.4 -.7 17.0 30 Insurance and pension reserves.......... 18.4 26.0 29.6 34.8 48.0 57.6 35.8 33.8 45.5 50.4 55.9 59.3 31 Other, net.............................................. 19.4 6.0 3.1 20.3 17.8 25.5 17.2 23.4 33.7 1.9 43.2 7.8 Private domestic nonfinancial investors 32 Direct lending in credit markets................. 52.8 42.2 44.9 44.1 60.6 90.3 50.0 38.4 51.6 69.6 92.1 88.8 33 U.S. government securities.................... 19.2 17.5 23.0 19.6 24.6 36.1 25.0 14.1 14.1 35.2 37.6 34.5 34 State and local obligations...................... 5.4 9.3 8.3 6.8 9.1 9.6 7.6 6.0 8.2 10.1 10.8 8.4 35 Corporate and foreign bonds................. 1.3 4.7 8.0 2.1 1.1 -1.8 2.9 1.3 .4 1.8 -3.0 -.5 36 Commercial paper.................................... 18.3 2.4 -.8 4.1 9.5 28.3 4.8 3.4 13.0 6.0 28.8 27.8 37 Other......................................................... 8.6 8.2 6.4 11.5 16.2 18.1 9.7 13.5 15.9 16.5 17.8 18.7 38 Deposits and currency................................. 90.6 75.7 96.8 128.8 144.3 140.6 114.3 143.3 132.6 156.0 130.0 151.1 39 Time and savings accounts..................... 76.1 66.7 84.8 112.2 120.1 120.6 99.5 125.0 110.5 129.7 111.5 129.7 40 Large negotiable CDs......................... 18.1 18.8 -14.1 -14.4 9.3 13.2 -19.8 -9.1 -4.4 22.9 11.5 14.9 41 Other at commercial banks................. 29.6 26.1 39.4 58.1 41.7 46.4 52.0 64.3 45.3 38.2 45.2 47.7 42 At savings institutions......................... 28.5 21.8 59.4 68.5 69.1 61.0 67.3 69.8 69.6 68.7 54.8 67.1 43 Money....................................................... 14.4 8.9 12.0 16.6 24.2 20.0 14.8 18.3 22.1 26.3 18.6 21.4 44 Demand deposits.................................. 10.5 2.6 5.8 9.3 15.9 10.8 8.9 9.6 16.5 15.3 8.5 13.1 45 Currency................................................ 3.9 6.3 6.2 7.3 8.3 9.2 6.0 8.6 5.6 11.0 10.1 8.3 46 Total of credit market instruments, de­ posits and currency............................... 143.4 117.8 141.6 172.9 204.9 230.9 164.3 181.6 184.2 225.6 222.1 240.0 47 Public support rate (in percent)............ 17.4 28.5 22.4 20.8 25.3 27.8 20.2 21.4 23.0 27.2 27.5 28.0 48 Private financial intermediation (in per­ cent) ................................................... 90.9 81.3 71.7 84.7 89.7 88.6 81.3 87.7 93.9 86.1 89.9 87.3 49 Total foreign funds................................... 6.4 28.0 7.1 20.3 51.1 50.5 10.4 30.1 27.1 75.1 30.3 70.7 Memo: Corporate equities not included above 9.2 4.1 10.7 11.9 3.8 2.6 13.4 10.4 1.7 5.8 2.4 2.7 51 Mutual fund shares.................................. -1.2 -.7 -.1 -1.0 -1.0 -1.1 -2.4 .4 -.8 -1.2 -.6 -1.5 52 Other equities........................................... 10.4 4.8 10.8 12.9 4.8 3.6 15.8 9.9 2.5 7.0 3.0 4.3 53 Acquisitions by financial institutions......... 13.3 5.8 9.7 12.5 6.2 3.7 13.1 12.0 6.1 6.3 2.0 5.4 54 Other net purchases..................................... -4.1 -1.6 1.0 -.7 -2.4 -1.1 .3 -1.6 -4.4 -.5 .4 -2.6 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 □ July 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 Nov. Dec. Jan. Feb. Marr Apr.r May r June 1 Industrial production.................................................. 129.8 137.1 145.2 149.6 150.9 150.9 151.2 152.3 150.0 151.8 151.4 Market groupings 2 Products, total............................................................ 129.3 137.1 144.3 147.7 149.1 149.4 150.2 151.1 148.5 150.7 150.1 3 Final, total.............................................................. 127.2 134.9 141.4 144.5 145.6 145.9 146.5 147.9 145.0 147.6 146.9 4 Consumer goods................................................ 136.2 143.4 147.4 149.7 150.6 150.6 151.0 152.1 148.2 151.5 150.0 5 Equipment......................................................... 114.6 123.2 133.1 137.3 138.7 139.5 140.2 141.8 140.5 142.6 142.8 6 Intermediate............................................................ 137.2 145.1 155.3 159.3 161.8 162.6 163.7 162.6 161.2 162.2 162.1 7 Materials..................................................................... 130.6 136.9 146.5 152.7 153.8 153.1 152.9 154.2 152.4 153.6 153.5 Industry groupings 8 Manufacturing............................................................ 129.5 137.1 145.6 150.4 151.8 151.9 152.2 153.4 150.8 153.0 152.5 Capacity utilization (percent)1 9 Manufacturing............................................................ 80.2 82.4 84.2 85.8 86.3 86.0 85.9 86.3 84.6 85.5 85.0 10 Industrial materials industries................................... 80.4 81.9 84.9 87.6 88.1 87.4 87.1 87.6 86.4 86.8 86.6 11 Construction contracts2............................................ 190.2 160.5 174.3 173.0 184.0 181.0 231.0 186.0 202.0 178.0 n.a. 12 Nonagricultural employment, total3........................... 120.7 125.0 130.3 132.3 133.5 133.0 133.5 134.1 134.1 134.5 134.7 13 Goods-producing, total............................................. 100.2 104.2 108.9 111.0 111.7 112.0 112.4 113.3 113. 1 113.3 113.3 14 Manufacturing, total.............................................. 97.7 101.0 104.5 105.9 106.6 107.1 107.4 107.8 107.6 107.5 107.3 15 Manufacturing, production-worker...................... 95.3 98.6 102.1 103.5 104.3 104.8 105.2 105.4 105. 1 104.9 104.6 16 Service-producing...................................................... 131.9 136.4 142.1 144.0 144.2 144.5 145.0 145.5 145.7 146.2 146.4 17 Personal income, total4.............................................. 220.4 244.0 272.5 285.0 288.5 290.3 292.6 296.2 297.4 299.5 n.a. 18 Wages and salary disbursements............................... 189.3 230.1 257.5 268.8 271.5 274.4 '276.9 280.5 281.0 282.6 n.a. 19 Manufacturing............................................................ 177.1 198.6 223.6 234.8 238.0 241.0 244.1 246.8 245.4 246.7 n.a. 20 Disposable personal income..................................... 176.8 194.5 216.7 226.0 233.4 n.a. 21 Retail sales5................................................................ 203.5 224.4 248.0 262.0 265.3 270.7 271.8 275.3 272.7 272.5 269.6 Prices6 22 Consumer.................................................................. 170.5 181.5 195.4 202.0 202.9 204.7 207.1 209.1 211.5 214.1 n.a. 23 Producer finished goods............................................ 170.3 180.6 194.6 200.3 202.4 205.2 207.4 208.8 211.2 212.4 213.4 1. Ratios of indexes of production to indexes of capacity. Based on data 5. Based on Bureau of Census data published in Survey of Current from Federal Reserve, McGraw-Hill Economics Department, and De­ Business (U.S. Department of Commerce). partment of Commerce. 6. Data without seasonal adjustment, as published in Monthly Labor 2. Index of dollar value of total construction contracts, including Review (U.S. Department of Labor). Seasonally adjusted data for changes residential, nonresidential, and heavy engineering, from McGraw-Hill in the price indexes may be obtained from the Bureau of Labor Statistics, Informations Systems Company, F. W. Dodge Division. U.S. Department of Labor. 3. Based on data in Employment and Earnings (U.S. Department of Labor). Series covers employees only, excluding personnel in the Armed Note. Basic data (not index numbers) for series mentioned in notes Forces. 3, 4, and 5, and indexes for series mentioned in notes 2 and 6 may also be 4. Based on data in Survey of Current Business (U.S. Department of found in the Survey of Current Business (U.S. Department of Commerce). Commerce). Series for disposable income is quarterly. Figures for industrial production for the last two months are preliminary and estimated, respectively. 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1978 1979 1978 1979 1978 1979 Series Q3 Q4 Qlr Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 147.7 150.6 152.5 152.1 173.7 175.4 177.1 178.9 85.0 85.9 86.1 85.0 2 Primary processing....................................... 158.2 161.9 162.1 161.8 180.2 181.9 183.8 185.8 87.8 89.0 88.2 87.0 3 Advanced processing................................... 142.1 144.5 147.3 147.1 170.2 171.8 173.4 175.1 83.5 84.1 84.9 84.0 4 Materials...................................................... 148.7 152.6 153.4 153.2 173.0 174.2 175.6 176.9 86.0 87.6 87.4 86.6 5 Durable goods.............................................. 150.4 155.2 155.2 154.1 176.3 177.4 178.4 179.4 85.3 87.5 87.0 85.9 6 Basic metal............................................... 124.6 129.4 124.2 n.a. 146.5 146.8 147.1 n.a. 85.1 88. 1 84.4 n.a. 7 Nondurable goods....................................... 163.2 166.9 169.5 171.4 186.5 188.5 190.7 192.7 87.5 88.5 r88.9 89.0 8 Textile, paper, and chemical................... 168.4 172.2 175.2 177.7 195.4 197.5 199.8 201.9 86.2 87.2 r87.7 88.0 9 Textile................................................... 117.3 119.4 117.4 n.a. 144.7 145.2 145.8 n.a. 81.0 82.2 80.5 n.a. 10 Paper..................................................... 134.8 137.2 137.6 n.a. 155.8 156.9 158.0 n.a. 86.5 87.4 87.1 n.a. 11 Chemical............................................... 204.4 209.5 215.8 n.a. 233.5 236.8 240.2 n.a. 87.5 88.5 r89. 8 n.a. 12 Energy.......................................................... 127.0 128.7 129.0 128.2 148.4 148.9 150.2 151.0 85.6 86.4 r85.9 84.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Labor Market A47 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1978 1979 Category 1976 1977 1978 Dec. Jan. Feb. Mar. Apr. May June Household Survey Data 156,048 158,559 161,058 162,250 162,448 162,633 162,909 163,008 163,260 163,469 2 Labor force (including Armed Forces)1........................................... 96,917 99,534 102,537 103,975 104,277 104,621 104,804 104,193 104,325 104,604 3 Civilian labor force..................................... 94,773 97,401 100,420 101,867 102,183 102,527 102,714 102,111 102,247 102,528 Employment 4 Nonagricultural industries2.......... 84,188 87,302 91,031 92,468 93,068 93,335 93,499 92,987 93,134 93,494 3,297 3,244 3,342 3,387 3,232 3,311 3,343 3,186 3,184 3,260 Unemployment 6 Number................................................... 7,288 6,855 6,047 6,012 5,883 5,881 5,871 5,937 5,929 5,774 7 Rate (percent of civilian labor force).................................................... 7.7 7.0 6.0 5.9 5.8 5.7 5.7 5.8 5.8 5.6 8 Not in labor force........................................ 59,130 59,025 58,521 58,275 58,170 58,012 58,105 58,815 58,935 58,865 Establishment Survey Data 9 Nonagricultural payroll employment3 79,382 82,256 85,760 87,281 87,524 87,818 88,263 r88,248 r88,516 88,613 10 Manufacturing............................................... 18,997 19,647 20,331 20,729 20,825 20,895 20,964 *•20,922 *•20,902 20,857 11 Mining............................................................... 779 809 837 904 905 c 919 922 r922 *•923 935 12 Contract construction................................ 3,576 3,833 4,213 4,397 4,381 4,385 4,526 r4,507 *•4,584 4,612 13 Transportation and public utilities... 4,582 4,696 4,858 4,967 4,974 5,001 5,025 r4,935 *■5,031 5,074 14 Trade................................................................... 17,755 18,492 19,392 19,697 19,817 19,883 19,945 *■19,959 *•19,978 19,968 15 Finance.............................................................. 4,271 4,452 4,676 4,789 4,809 4,829 4,839 *■4,853 *•4,868 4,876 16 Service................................................................. 14,551 15,249 15,976 16,327 16,352 16,438 16,535 *•16,575 *■16,617 16,670 17 Government..................................................... 14,871 15,079 15,478 15,471 15,461 15,468 15,507 *■15,575 *•15,613 15,621 1. Persons 16 years of age and over. Monthly figures, which are based 3. Data include all full- and part-time employees who worked during, on sample data, relate to the calendar week that contains the 12th day; or received pay for, the pay period that includes the 12th day of the annual data are averages of monthly figures. By definition, seasonality month, and exclude proprietors, self-employed persons, domestic servants, does not exist in population figures. Based on data from Employment unpaid family workers, and members of the Armed Forces. Data are and Earnings (U.S. Dept, of Labor). adjusted to the February 1977 benchmark. Based on data from Employ- 2. Includes self-employed, unpaid family, and domestic service workers. ment and Earnings (U.S. Dept, of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nontmancial Statistics □ July 1979 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. 1967 1978 1979 por­ avertion ageP Apr. May June Oct. Nov. Dec. Jan. Feb. Mar.r Apr. May** Index (1967 = 100) Major Market 1Total index................................................ 100.00 145.2 143.2 143.9 144.9 148.7 149.6 150.9 150.9 151.2 152.3 150.0 151.8 151.4 2 Products..................................................... 60.71 144.3 143.0 143.1 144.0 146.5 147.7 149.1 149.4 150.2 151.1 148.5 150.7 150.1 3 Final products....................................... 47.82 141.4 140.5 140.5 141.1 144.1 144.5 145.6 145.9 146.5 147.9 145.0 147.6 146.9 4 Consumer goods................................ 27.68 147.4 147.5 147.0 147.0 149.2 149.7 150.6 150.6 151.0 152.1 148.2 151.5 150.0 5 Equipment.......................................... 20.14 133.1 130.8 131.6 133.0 137.0 137.3 138.7 139.5 140.2 141.8 140.5 142.6 142.8 6 Intermediate products........................... 12.89 155.3 152.1 152.6 154.7 158.0 159.3 161.8 162.6 163.7 162.6 161.2 162.2 162.1 7 Materials.................................................... 39.29 146.5 143.7 145.1 146.4 151.4 152.7 153.8 153.1 152.9 154.2 152.4 153.6 153.5 Consumer goods 8 Durable consumer goods......................... 7.89 158.9 161.8 160.2 160.6 161.6 161.8 161.9 160.9 161.3 163.2 151.3 161.0 156.1 9 Automotive products............................. 2.83 178.6 184.3 180.0 179.9 185.6 189.0 185.1 181.3 179.0 185.6 161.6 183.6 174.6 10 Autos and utility vehicles................. 2.03 172.5 182.7 175.6 174.3 180.5 185.0 179.3 173.4 170.7 178.9 147.4 117.1 166.2 11 Autos.............................................. 1.90 148.5 159.1 151.6 149.8 154.2 159.7 151.8 145.9 144.9 153.7 128.6 153.1 147.6 12 Auto parts and allied goods............. 80 194.0 188.2 191.5 193.9 199.1 199.0 200.1 201.8 200.2 202.8 197.7 200.1 196.2 13 Home goods.......................................... 5.06 147.8 149.2 148.9 149.7 148.2 146.5 148.9 149.5 151.3 150.6 145.5 148.3 145.7 14 Appliances, A/C, and TV................. 1.40 132.5 142.2 138.3 139.0 128.7 123.4 129.1 125.9 130.4 127.5 115.1 126.3 123.7 15 Appliances and TV....................... 1.33 134.5 144.7 140.7 141.0 129.9 124.4 129.8 126.8 131.5 128.8 116.1 127.8 n.a. 16 Carpeting and furniture.................... 1.07 164.3 158.9 163.4 166.0 168.0 164.9 166.8 170.8 172.9 173.1 170.6 171.0 n.a. 17 Miscellaneous home goods............... 2.59 149.3 149.0 148.8 148.8 150.6 151.3 152.0 153.6 153.7 153.9 151.5 150.9 149.0 18 Nondurable consumer goods................... 19.79 142.8 141.8 141.7 141.6 144.3 144.8 146.2 146.5 146.8 147.8 146.9 147.8 147.5 19 4.29 125.5 124.9 125.4 124.8 128.3 130.1 130.1 n.a. n.a. n.a. n.a. 20 Consumer staples................................... 15.50 147.6 146.6 146.2 146.3 148.8 149.2 150.6 151.0 ’ i 5 i * 3 152.4 151.3 153.0 152.7 21 Consumer foods and tobacco........... 8.33 140.1 140.8 139.9 139.0 140.4 141.0 143.0 142.1 142.6 145.5 143.9 146.5 n.a. 22 Nonfood staples................................. 7.17 156.2 153.3 153.4 154.8 158.5 158.8 159.6 161.3 161.6 160.4 160.1 160.5 160.6 23 Consumer chemical products........ 2,63 187. 1 182.5 182.0 185.5 191.9 190.7 193.2 196.5 196.3 194.2 192.5 194.7 n.a. 24 Consumer paper products............. 1.92 118.1 117.7 117.9 118.0 117.6 117.6 116.9 120.1 122.2 121.3 121.7 121.9 n.a. 25 Consumer energy products........... 2.62 153.2 149.9 150.7 150.8 155.4 156.7 156.9 156.6 155.7 155.0 155.6 154.6 n.a. 26 Residential utilities..................... 1.45 161.5 159.0 157.2 159.0 162.8 162.1 161.1 165.3 168.0 168.9 n.a. n.a. n.a. Equipment 27 Business...................................................... 12.63 162.0 159.3 160.2 161.8 166.9 167.2 168.7 169.7 170.6 172.2 170.2 173.2 173.6 28 Industrial................................................ 6.77 149.9 147.8 149.7 150.9 152.9 151.8 152.2 154.7 156.0 156.3 154.3 155.9 156.0 29 Building and mining......................... 1.44 223.4 225.1 226.0 227.3 226.5 223.8 222.3 222.3 224.2 223.0 223.1 224.4 224.4 30 Manufacturing................................... 3.85 121.9 119.0 121.3 122.8 125.0 124.2 124.7 127.9 128.9 129.5 127.9 129.7 129.8 31 Power.................................................. 1.47 151.0 147.3 149.2 149.2 154.0 153.4 155.6 158.5 159.8 160.9 156.4 157.8 157.5 32 Commercial transit, farm..................... 5.86 176.0 172.6 172.3 174.4 182.9 184.9 187.8 187. 1 187.4 190.6 188.6 193.4 194.0 33 Commercial........................................ 3.26 208.6 203.8 204.2 206.9 215.1 214.9 217.1 218. 1 218.8 221.0 221.2 223.6 223.5 34 Transit................................................ 1.93 133.8 133.7 132.2 132.3 142.6 147.5 151.0 148.2 145.7 151.2 145.5 155.2 156.9 35 Farm................................................... 67 138.9 132.9 131.9 137.3 143.2 145.8 151.5 149. 5 154.6 157.6 153.8 156.5 n.a. 36 Defense and space.................................... 7.51 84.5 82.9 83.6 84.6 86.7 87.2 87.9 88.7 89.1 90.5 90.8 91.2 91.4 Intermediate products 37 Construction supplies............................... 6.42 153.3 148.5 150.4 152.1 157.0 159.0 160.8 161.2 161.3 159.9 158.0 159.3 158.6 38 Business supplies....................................... 6.47 157.3 155.6 155.0 157.0 159.2 159.9 162.7 163.8 166.1 165.5 164.3 165.0 39 Commercial energy products................ 1.14 166.5 163.5 162.7 163.0 168.8 168.8 170.0 172.2 173.6 172.8 170.9 172.3 Materials 40 Durable goods materials........................... 20.35 146.9 142.7 143.9 145.4 154.0 154.9 156.8 155.4 154.4 155.8 153.0 154.6 154.7 41 Durable consumer parts....................... 4.58 140.3 136.8 137.9 138.7 147.3 147.4 148.4 147.8 144.3 145.1 136.8 141.2 139.0 42 Equipment parts.................................... 5.44 159.1 154.8 155.8 157.4 166.0 167.6 170.5 170.5 171.6 173.4 173.9 174.6 175.2 43 Durable materials n.e.c......................... 10.34 143.4 138.9 140.3 141.8 150.5 151.6 153.6 150.8 149.8 151.1 149.2 150.1 150.9 44 Basic metal materials......................... 5.57 120.4 116.7 117.5 118.2 128.2 129.1 130.9 124.6 122.8 125.2 122.9 123.7 n.a. 45 Nondurable goods materials.................... 10.47 162.9 162.0 163.5 164.1 165.7 167.8 167.1 168.3 169.2 171.1 170.6 171.9 171.8 46 Textile, paper, and chemical materials. 7.62 167.9 166.4 167.9 168.8 171.0 173.3 172.3 173.7 175.0 176.9 177.0 178.1 178.0 47 Textile materials.................................... 1.85 117.2 116.5 116.7 118.0 118.7 120.4 119.0 118. 1 115.8 118.4 117.3 118.9 n.a. 48 Paper materials...................................... 1.62 137.1 139.2 140.1 139.9 137.3 137.6 136.6 133.5 138.5 140.8 141.1 141.0 n.a. 49 Chemical materials................................ 4.15 202.6 199.5 201.7 202.9 207.6 210.7 210.3 214.3 215.9 217.2 217.6 218.9 n.a. 50 Containers, nondurable......................... 1.70 160.5 160.5 161.9 162.8 163.4 165.6 165.5 167.6 166.2 168.0 165.0 165.8 n.a. 51 Nondurable materials n.e.c................... 1.14 133.2 134.6 135.8 135.0 134.5 134.5 135.4 133.4 135.3 135.8 136.7 139.0 n.a. 52 Energy materials........................................ 8.48 125.2 123.9 125.2 127.5 128.0 128.4 129.6 128.7 128.9 129.4 128.2 128.2 128.2 53 Primary energy....................................... 4.65 112.7 115.5 114.4 116.1 115.9 117.4 116.9 113.5 112.4 114.2 112.9 113.2 n.a. 54 Converted fuel materials....................... 3.82 140.5 134.1 138.6 141.4 142.7 141.8 145.1 147.3 149.1 148.0 146.9 146.3 n.a. Supplementary groups 55 Home goods and clothing...........:........... 9.35 137.6 138.0 138.2 138.3 139.1 138.5 140.2 140.6 141.6 141.8 138.6 139.4 137.8 56 Energy, total.............................................. 12.23 135.1 133.1 134.2 135.9 137.6 138.2 139.3 138.7 138.8 138.8 138.0 137.9 138.0 57 Products................................................. 3.76 157.2 154.1 154.3 154.6 159.3 160.4 161.0 161.3 161.1 160.3 160.2 160.0 n.a. 58 Materials................................................ 8.48 125.2 123.9 125.2 127.5 128.0 128.4 129.6 128.7 128.9 129.4 128.2 128.2 128.2 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^ Apr. May June Oct. Nov. Dec. Jan. Feb. Mar.r Apr. MayP June6 Index (1967 == 100) Major Industry 1 Mining and utilities..................... 12.05 141.6 140.9 140.9 142.5 144.1 144.5 145.0 144.2 144.0 143.9 143.6 144.1 144.6 6.36 124.2 127.2 126.7 128.0 127.6 128.1 127.6 124.0 121.8 123.4 123.6 124.0 124.8 5.69 161.0 156.0 157.0 158.6 162.4 162.9 164.3 166.8 169 !o 166.9 166.0 166.6 166.9 3.88 182.2 175.0 177.1 180.1 184.1 185.0 186.6 189.4 192.2 189.2 n.a. n.a. 87.95 145.7 143.5 144.3 145.5 149.5 150.4 151.8 151.9 152.2 153.4 150.8 153.0 152.5 35.97 154.8 153.2 154.0 154.9 157.4 158.5 159.6 160.4 160.7 161.7 160.8 161.9 161.5 51.98 139.3 136.9 137.6 139.0 144.0 144.8 146.4 146.0 146.2 147. 5 143.9 147.0 146.3 Mining 8 Metal.............................................. 10 .51 121.0 122.3 120.0 121.1 122.1 125.3 123.9 123.5 124.3 125.5 128.6 124.9 n.a. 9 Coal................................................ 11,12 .69 115.7 129.5 131.7 136.4 114.7 145.1 146.8 116.0 104.0 124.0 129.5 133.9 142.6 10 Oil and gas extraction.................. 13 4.40 124.7 127.3 126.3 127.1 124.5 124.9 123.8 123.2 121.7 120.6 119.9 119.9 119.4 11 Stone and earth minerals............. 14 .75 131.1 128.9 130.1 130.7 134.0 132.9 134.2 136.7 137.0 136.7 135.8 137.7 n.a. Nondurable manufacturers 12 Foods............................................. 20 8.75 142.9 143.1 142.8 141.8 143.2 144.2 145.7 145.5 146.5 148.0 147.3 149.4 n.a. 13 Tobacco products......................... 21 .67 119.2 121.0 120.2 122.7 119.0 121.5 122.0 120.0 118.8 121.8 121.9 n.a. n.a. 14 Textile mill products..................... 22 2.68 140.0 138.1 138.5 140.4 142.1 143.9 144.9 143.5 140.5 142.9 142.5 143.1 n.a. 15 Apparel products.......................... 23 3.31 126.3 126.1 125.8 126.8 130.6 131.4 132.3 n.a. n.a. n.a. n.a. 16 Paper and products....................... 26 3.21 144.5 145.7 146.6 148.0 145.8 145.3 147.8 144.9 i 48 .* 0 149.8 148.7 147.3 148.0 17 Printing and publishing................ 27 4.72 129.9 128.6 128.2 128.7 130.5 132.1 133.0 135.8 137.6 137.0 135.5 136.0 136.5 18 Chemicals and products............... 28 7.74 190.7 185.5 188.1 191.1 195.9 197.6 197.9 200.8 201.4 201.5 201.7 203.6 n.a. 19 Petroleum products....................... 29 1.79 144.2 141.7 143.4 142.8 147.1 148.9 149.9 147.9 144.5 143.1 145.0 143.5 142.4 20 Rubber and plastic products........ 30 2.24 254.8 249.1 252.7 255.5 264.1 264.2 267.0 268.1 270.1 272.2 267.7 271.6 n.a. 21 Leather and products................... 31 .86 74.1 76.0 75.7 75.1 73.8 74.1 74.0 75.1 73.3 73.1 70.9 72.7 n.a. Durable manufactures 22 Ordnance, private and govern­ ment ....................................... 19,91 3.64 73.7 73.0 74.3 74.7 73.9 73.6 74.2 73.4 73.5 75.5 76.3 76.4 76.0 23 Lumber and products................... 24 1.64 138.9 136.9 136.5 138.7 141.2 142.5 146.0 142.0 140.6 140.7 139.3 141.7 n.a. 24 Furniture and fixtures.................. 25 1.37 154.7 148.9 152.8 156.2 160.9 157.6 156.7 161.7 163.6 163.8 160.8 161.4 n.a. 25 Clay, glass, stone products.......... 32 2.74 159.2 156.7 157.9 159.8 162.1 166.3 167.7 168.6 166.9 166.1 163.4 164.8 n.a. 26 Primary metals.............................. 33 6.57 119.0 114.3 115.5 117.5 128.6 129.0 130.4 122.0 121.3 121.8 119.4 120.0 121.2 27 Iron and steel............................ 331,2 4.21 113.2 109.0 110.5 114.5 123.8 124.1 124.5 112.7 112.8 114.5 113.2 112.2 n.a. 28 Fabricated metal products........... 34 5.93 142.6 139.5 140.4 142.3 146.0 146.9 149.0 151.0 152.2 151.4 150.2 150.8 150.0 29 Nonelectrical machinery............... 35 9.15 155.6 152.2 152.9 154.6 160.3 160.3 161.8 163.6 164.6 166.2 165.0 165.7 166.0 30 Electrical machinery..................... 36 8.05 154.3 152.3 152.9 154.1 157.9 159.0 161.9 163.9 165.3 165.9 163.5 166.6 165.9 31 Transportation equipment............ 37 9.27 130.5 130.5 130.1 130.4 137.0 139.3 139.5 137.7 136.3 140.4 128.7 140.4 137.1 32 Motor vehicles and parts.......... 371 4.50 168.3 171.7 168.3 167.7 176.8 180.8 179.7 174.5 171.4 178.6 155.4 175.4 168.0 33 Aerospace and miscellaneous transportation equip­ ment ................................... 372-9 4.77 94.9 91.8 93.9 95.0 99.6 100.2 101.7 103.0 103.2 104.3 103.7 107.3 108.2 34 Instruments................................... 38 2.11 171.6 170.5 169.8 170.9 175.3 172.2 179.5 180.4 181.0 182.7 180.4 180.8 180.5 35 Miscellaneous manufactures........ 39 1.51 153.3 152.9 152.7 153.5 153.9 152.1 153.7 154.8 156.9 157.1 154.5 154.7 154.9 Gross value (billions of 1972 dollars, annual rates) Major Market 36 Products, total............................... 1507.4 609.6 608.8 606.8 608.9 621.3 625.3 632.0 628.0 632.0 639.2 623.2 635.3 632.9 37 Final.............................................. 1390.9 469.3 470.7 468.2 468.9 478.8 481.6 486.6 481.8 484.4 492.1 477.2 487.8 486.0 38 Consumer goods....................... 1277.5 324.0 326.3 324.0 323.0 328.1 330.8 332.3 329.0 330.4 343.3 323. 8 330.2 327.9 39 Equipment................................. 1113.4 145.3 144.4 144.2 146.0 150.6 150.9 154.3 152.9 154.1 157.7 153.3 157.8 158.2 40 Intermediate.................................. 1116.6 140.4 138.3 138.6 140.3 142.6 144.0 145.6 146.3 147.4 147.2 146.4 147.3 147.1 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 □ July 1979 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1978 1979 1976 1977 1978 Nov. Dec. Jan. Feb. Mar. Apr. May Private residential real estate activity (thousands of units) New Units 1 Permits authorized............................. 1,296 1,677 1,801 1,789 1,827 1,442 1,425 1,621 1,517 1,591 2 1-family............................................ 894 1,126 1,182 1,172 1,268 920 881 1,056 rl,036 1,027 3 2-or-more-family............................. 402 551 619 617 557 522 544 565 r481 564 4 Started................................................. 1,538 1,986 2,019 2,107 2,074 1,679 1 ,381 1,786 *•1,735 1,827 5 1-family............................................ 1,163 1,451 1,433 1,502 1,539 1,139 953 1,266 rl,273 1,195 6 2-or-more-family............................. 377 535 586 605 535 540 428 520 r462 632 7 Under construction, end of period1.. 1,147 1,442 1,355 1,337 1,345 1,360 1,344 1,316 1,266 n.a. 8 1-family............................................ 655 829 1,378 791 799 812 793 775 746 n.a. 9 2-or-more-family............................. 492 613 553 545 546 549 551 541 520 n.a. 10 Completed........................................... 1,362 1,652 1,866 1,885 1,888 1,815 1,894 1,954 1,997 n.a. 11 1-family............................................ 1,026 1,254 1,368 1,375 1,805 1,331 1,376 1,415 1,412 n.a. 12 2-or-more-family............................. 336 398 498 510 1,892 484 518 539 592 n.a. 13 Mobile homes shipped....................... 246 277 276 280 303 311 272 270 r273 263 Merchant builder activity in 1-family units 14 Number sold....................................... 639 819 817 803 802 774 697 784 r725 726 15 Number for sale, end of period i........ 433 407 423 412 413 412 410 424 r425 430 Price (thousands of dollars) 2 Median 16 Units sold........................................ 44.2 48.9 55.9 58.8 59.9 60.3 61.2 60.4 62.8 62.9 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 66.3 67.4 67.7 68.7 68.5 r71.3 71.4 Existing Units (1-family) 19 Number sold....................................... 3,002 3,572 3,905 4,350 4,160 3,710 3,620 3,650 3,760 3,860 Price of units sold (thous. of dollars) 2 20 Median................................................ 38.1 42.9 48.7 50.7 50.9 52.0 51.9 53.8 54.7 55.9 21 Average............................................... 42.2 47.9 55.1 57.4 58.1 59.8 59.5 61.8 62.5 64.2 Value of new construction * (millions of dollars) Construction 22 Total put in place............................... 148,778 172,552 202,219 215,827 218,529 208,595 205,616 216,824 216,723 221,525 23 Private................................................. 110,416 134,723 157,455 167,931 170,966 162,260 163,852 172,820 171,895 173,833 24 Residential...................................... 60,519 80,957 93,088 97,594 98,793 92,188 94,092 96,591 95,926 94,956 25 Nonresidential, total...................... 49,897 53,766 64,367 70,337 72,173 70,072 69,760 76,229 75,969 78,877 Buildings 26 Industrial................................. 7,182 7,713 10,762 12.529 13,273 12,512 13,022 15,201 14,034 14,502 27 12,757 14,789 18,280 20,294 20,049 19,272 18,767 20,990 21,463 23,628 28 6,155 6,200 6,659 6,877 6,922 6,598 6,431 7,071 7,147 7,035 29 23,803 25,064 28,666 30,637 31,929 31,688 31,541 32,967 33,325 33,712 30 Public.................................................. 38,312 37,828 44,762 47,897 47,563 46,335 41,763 44,004 44,828 47,592 31 1,521 1,517 1,462 1,415 1,442 1,621 1,438 1,983 1,557 1,484 32 Highway.......................................... 9,439 9,280 8,627 10,956 11,176 10,015 9,037 9,332 n.a. n.a. 33 Conservation and development... 3,751 3,882 3,697 4,593 4,357 4,865 4,476 4,862 n.a. n.a. 34 Other3.............................................. 23,601 23,149 23,503 30,933 30,588 29,834 26,812 27,234 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 those reported see Construction Reports (C-30-76-5), issued by the Bureau in July 1976. to the Census Bureau from 14,000 jurisdictions through 1977, and 16,000 jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Prices A51 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted. 12 months to— 3 months (at annual rate) to— 1 month to— Index level Item 1978 1979 1979 May 1978 1979 1979 May May (1967 June Sept. Dec. Mar. Jan. Feb. Mar. Apr. May = 100)3 Consumer Prices 1 7.0 10.8 10.7 8.5 8.5 13.0 .9 1.2 1.0 1.1 1.1 214.1 2 Commodities................................................ 6.4 10.9 10.5 7.3 9.6 14.5 1.1 1.2 1.1 1.2 .9 205.8 3 Food.......................................................... 9.7 11.4 18.3 4.8 10.2 17.7 1.4 1.6 1.1 1.0 .7 234.3 5.0 10.8 7.2 8.3 9.6 12.9 .9 1.0 1.1 1.3 1.1 191.6 5.3 10.0 9.0 9.1 11.3 10.0 .9 1.0 .5 .9 .5 189.2 6 Nondurable.......................................... 4.3 11.8 5.5 6.9 6.7 16.5 1.1 .8 1.9 1.9 1.8 193.2 7 Services......................................................... 8.2 10.3 11.0 10.3 7.2 10.6 .5 1.1 .9 .9 1.3 229.5 8 Rent.......................................................... 6.9 6.8 8.2 7.3 7.7 3.6 .3 .4 .2 .5 1.0 173.8 8.4 10.9 11.3 10.8 7.1 11.7 .6 1.1 1.0 1.0 1.3 239.8 Other groupings 10 All items less food....................................... 6.6 10.5 8.9 9.3 8.5 12.0 .8 1.0 1.0 1.2 1.2 208.9 11 All items less food and energy................... 6.7 9.5 10.4 9.7 7.7 9.3 .5 .9 .8 .9 .9 204.1 10.0 14.6 13.2 14.6 10.9 16.7 .8 1.8 1.3 1.4 1.3 254.9 Producer Prices 7.1 10.0 10.3 7.4 10.5 13.7 1.3 rl.l r.S .9 .4 212.4 6.7 10.4 10.6 7.5 11.1 15.6 1.4 r1.2 n.o .8 .3 211.3 7.5 9.6 11.4 4.9 15.3 20.1 1.8 rl. 8 n.o -.3 -1.3 226.6 6.3 10.8 10.5 8.8 8.8 12.9 1.2 r.9 r1.0 1.4 1.3 201.6 7.9 9.0 9.1 7.0 8.8 9.8 1.0 r.9 '.5 1.1 .7 214.7 6.2 12.4 9.9 7.5 13.0 17.3 1.5 1.6 1.0 1.0 1.0 246.4 6.5 11.2 7.2 6.9 11.2 13.2 1.2 n.o r1.0 1.6 1.0 238.8 Crude 5.7 20.0 14.9 16.9 19.8 29.5 1.6 r2.7 r2.2 -.5 2.3 339.2 21 Food...................................................... 8. t 15.0 26.6 2.8 21.2 30.6 2.8 r3.8 .2 -.3 -.3 251.9 1. Figures for consumer prices are those for all urban consumers. 3. Not seasonally adjusted. 2. Excludes intermediate materials for food manufacturing and manu­ factured animal feeds. Source. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics □ July 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 1979 1976 1977 1978 Account Q4 Ql Q2 Q3 Q4 Ql Gross national product 1 1,700.1 1,887.2 2,107.6 1,958.1 1,992.0 2,087.5 2,136.1 2,214.8 2,267.3 By source 2 Personal consumption expenditures.................... 1,090.2 1,206.5 1,340.1 1,255.2 1,276.7 1,322.9 1,356.9 1,403.9 1,442.2 3 Durable goods.................................................. 156.6 178.4 197.5 187.2 183.5 197.8 199.5 209.1 211.5 4 442.6 479.0 526.5 496.9 501.4 519.3 531.7 553.4 567.7 5 Services.............................................................. 491.0 549.2 616.2 571.1 591.8 605.8 625.8 641.4 663.1 6 Gross private domestic investment..................... 243.0 297.8 345.6 313.5 322.7 345.4 350.1 364.0 370.4 7 Fixed investment............................................... 232.8 282.3 329.6 300.5 306.0 325.3 336.5 350.5 355.1 8 Nonresidential............................................... 164.6 190.4 222.6 200.3 205.6 220.1 227.5 237.1 244.0 9 Structures................................................... 57.3 63.9 77.8 67.4 68.5 76.6 80.9 85.1 85.8 10 Producers’ durable equipment................. 107.3 126.5 144.8 132.8 137.1 143.5 146.6 152.0 158.3 11 Residential structures................................... 68.2 94.9 107.0 100.2 100.3 105.3 109.0 113.4 111.1 12 Nonfarm.................................................... 65.8 88.9 103.8 97.5 97.3 102.1 105.7 110.2 108.0 13 Change in business inventories........................ 10.2 15.6 16.0 13.1 16.7 20.1 13.6 13.5 15.3 14 Nonfarm........................................................ 12.2 15.0 16.7 10.4 16.9 22.1 14.6 13.4 16.5 15 Net exports of goods and services....................... 7.4 -11.1 -12.0 -23.2 -24.1 -5.5 -10.7 -7.6 -3.7 16 Exports.............................................................. 163.2 175.5 204.8 172.1 181.7 205.4 210.1 221.9 235.0 17 Imports.............................................................. 155.7 186.6 216.8 195.2 205.8 210.9 220.8 229.5 238.7 18 Government purchases of goods and services. . . 359.5 394.0 433.9 412.5 416.7 424.7 439.8 454.5 458.4 19 Federal............................................................... 129.9 145.1 153.8 152.2 151.5 147.2 154.0 162.5 164.5 20 State and local.................................................. 229.6 248.9 280.2 260.3 265.2 277.6 285.8 292.0 293.9 By major type of product 21 Final sales, total.................................................... 1,689.9 1,871 .6 2,091.6 1,945.0 1,975.3 2,067.4 2,122.5 2,201.3 2,252.0 22 Goods................................................................ 760.3 832.6 918.4 859.6 861.8 912.2 927.3 972.5 999.3 23 Durable.......................................................... 304.6 341.3 376.8 347.4 351.2 375.8 380.1 400.1 424.8 24 Nondurable................................................... 455.7 491.3 541.7 512.2 510.6 536.4 547.2 572.4 575.0 25 Services.............................................................. 778.0 862.8 962.5 893.6 926.4 952.0 973.7 997.7 1,028.9 26 Structures.......................................................... 161.9 191.8 226.7 204.9 203.8 223.4 235.0 244.7 239.1 27 Change in business inventories............................ 10.2 15.6 16.0 13.1 16.7 20.1 13.6 13.5 15.3 28 Durable goods.................................................. 5.3 8.4 11.7 6.3 14.8 10.8 10.2 10.8 18.5 29 4.9 7.2 4.3 6.8 1.9 9.3 3.4 2.7 -3.2 30 Memo: Total GNP in 1972 dollars................... 1,271.0 1,332.7 1,385.7 1,354.5 1,354.2 1,382.6 1,391.4 1,414.7 1,417.6 National income 31 1,359.2 1,515.3 1,703.7 1,576.9 1,603.1 1,688.1 1,728.4 1,795.2 1,838.7 32 Compensation of employees................................ 1,036.8 1,153.4 1,301.4 1,199.7 1,241.0 1,287.8 1,317.1 1,359.8 1,406.6 33 Wages and salaries............................................ 890.1 983.6 1,101.0 1,021.2 1,050.8 1,090.2 1,113.4 1,149.4 1,185.1 34 Government and government enterprises.. 187.6 200.8 216.1 208.1 211.4 213.9 216.8 222.3 225.1 35 Other.............................................................. 702.5 782.9 884.8 813.1 839.3 876.3 896.6 927.1 960.1 36 Supplement to wages and salaries................... 146.7 169.8 200.5 178.4 190.2 197.6 203.6 210.4 221.5 37 Employer contributions for social insurance................................................ 69.7 79.4 94.5 82.4 90.2 93.6 95.7 98.6 105.6 38 Other labor income....................................... 77.0 90.4 105.9 96.1 100.0 104.0 107.9 111.8 115.9 39 Proprietors’income1............................................ 88.6 99.8 113.2 107.3 105.0 110.1 114.5 123.0 123.4 40 Business and professional1............................... 70.2 79.5 87.8 82.3 83.1 86.1 89.6 92.6 92.9 41 Farm1................................................................ 18.4 20.3 25.3 25.1 21.9 24.0 25.0 30.4 30.6 42 Rental income of persons2................................... 22.5 22.5 23.4 22.7 22.8 22.2 24.3 24.4 24.7 43 Corporate profits1................................................ 127.0 144.2 159.5 148.2 132.6 163.4 165.2 176.6 168.7 44 Profits before tax 3............................................ 155.9 173.9 202.0 178.3 172.1 205.5 205.4 224.9 229.8 45 Inventory valuation adjustment....................... -14.5 -14.8 -24.4 -14.8 -23.5 -24.9 -20.9 -28.4 -40.4 46 Capital consumption adjustment..................... -14.4 -14.9 -18.1 -15.3 — 16.1 -17.2 -19.3 -19.9 -20.7 47 Net interest........................................................... 84.3 95.4 106.3 99.0 101.7 104.6 107.4 111.4 115.2 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 1979 1976 1977 1978 Q4 Ql Q2 Q3 Q4 Ql Personal income and saving 1 Total personal income. 1,380.9 1,529.0 1,708.0 1,593.0 1,628.9 1,682.4 1,731.7 1,789.0 1,836.0 2 Wage and salary disbursements................. 890.1 983.6 1,100.9 1,021.2 1,050.8 1,090.2 1,113.2 1,149.4 1,185.3 3 Commodity-producing industries........... 307.5 343.7 390.2 357.1 365.9 387.0 396.4 411.3 426.8 4 Manufacturing..................................... 237.5 266.3 299.9 277.3 286.9 296.1 302.0 314.4 327.2 5 Distributive industries............................. 216.4 239.1 268.9 247.5 257.0 266.4 271.6 280.4 290.3 6 Service industries.............................................. 178.6 200.1 225.8 208.5 216.5 222.8 228.5 235.4 242.9 7 Government and government enterprises, 187.6 200.8 216.1 208.1 211.4 213.9 216.7 222.3 225.3 8 Other labor income....................................... 77.0 90.4 105.9 96.1 100.0 104.0 107.9 111.8 115.9 9 Proprietors’income1................ 88.6 99.8 113.2 107.3 105.0 110.1 114.5 123.0 123.4 10 Business and professional1. 70.2 79.5 87.8 82.3 83.1 86.1 89.6 92.6 92.9 11 Farm1................................. 18.4 20.3 25.3 25.1 21.9 24.0 25.0 30.4 30.6 12 Rental income of persons2. 22.5 22.5 23.4 22.7 22.8 22.2 24.3 24.4 24.7 13 Dividends............................ 37.9 43.7 49.3 46.3 47.0 48.1 50.1 51.9 54.0 14 Personal interest income... 126.3 141.2 159.0 146.0 151.4 156.3 161.7 166.6 172.6 15 Transfer payments......................................... 193.9 208.8 226.0 215.9 219.2 220.6 230.4 233.9 239.0 16 Old-age survivors, disability, and health insurance benefits............................... 92.9 105.0 117.4 110.1 112.1 113.7 121.1 122.7 124.8 17 Less: Personal contributions for social insurance....................................................... 55.5 61.0 69.7 62.6 67.2 69.2 70.5 72.1 78.8 18 Equals: Personal income.................................. 1,380.9 1,529.0 1,708.0 1,593.0 1,628.9 1,682.4 1,731.7 1,789.0 1,836.0 19 Less: Personal tax and nontax payments... 196.5 226.0 256.2 233.3 237.3 249.1 263.2 275.1 272.8 20 Equals: Disposable personal income................ 1,184.4 1,303.0 1,451.8 1,359.6 1,391.6 1,433.3 1,468.4 1,513.9 1,563.3 21 Less: Personal outlays........................... 1,116.3 1,236.1 1,374.9 1,285.9 1,309.2 1,357.0 1,392.5 1,440.9 1,480.2 22 Equals: Personal saving........................... 68.0 66.9 76.9 73.7 82.4 76.3 76.0 73.0 83.1 Memo items Per capita (1972 dollars) 23 Gross national product..................... 5,906 6,144 6,340 6,226 6,215 6,334 6,360 6,452 6,455 24 Personal consumption expenditures. 3,808 3,954 4,080 4,030 4,009 4,060 4,092 4,159 4,160 25 Disposable personal income............. 4,136 4,271 4,421 4,365 4,370 4,399 4,428 4,485 4,508 26 Saving rate (percent)............................ 5.7 5.1 5.3 5.4 5.9 5.3 5.2 4.8 5.3 Gross saving 27 Gross private saving.............................................. 270.7 290.8 320.1 304.3 305.4 319.9 325.7 329.6 339.3 28 Personal saving..................................................... 68.0 66.9 76.9 73.7 82.4 76.3 76.0 73.0 83.1 29 Undistributed corporate profits1......................... 24.8 28.7 26.3 28.0 15.6 30.3 29.0 30.3 24.5 30 Corporate inventory valuation adjustment......... -14.5 -14.8 -24.4 -14.8 -23.5 -24.9 -20.9 -28.4 -40.4 Capital consumption allowances 31 Corporate.............................................................. 111.5 120.9 132.5 124.6 127.4 130.5 134.7 137.4 140.3 32 Noncorporate........................................................ 66.3 74.3 84.4 77.9 79.9 82.8 86.1 89.0 91.4 33 Wage accruals less disbursements....................... 34 Government surplus, or deficit (—), national income and product accounts...................... -33.2 -18.6 -1.6 -29.6 -21.1 6.2 .6 8.0 10.6 35 Federal.............................................................. -53.8 -48.1 -29.9 -58.6 -52.6 -23.6 -22.8 -20.8 -16.9 36 State and local.................................................. 20.7 29.6 28.3 29.0 31.5 29.8 23.4 28.8 27.5 37 Capital grants received by the United States, net.................................................................. 1.1 38 Investment............................................................. 241.7 276.9 320.4 279.5 286.4 326.6 326.6 342.0 352.3 39 Gross private domestic..................................... 243.0 297.8 345.6 313.5 322.7 345.4 350.1 364.0 370.4 40 Net foreign........................................................ -1.2 -20.9 -25.2 -34.1 -36.3 -18.9 -23.5 -22.1 -18.1 41 Statistical discrepancy.......................................... 4.2 4.7 1.8 4.8 2.2 .5 .4 4.3 1.2 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 □ July 1979 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1979 Item credits or debits 1976 r 1977 r 1978 r Ql Q2 Q3 Q4 Ql 1 Merchandise exports................. 114,745 120,816 141,884 30,811 35,267 36,491 39,315 41,350 2 Merchandise imports................ 124,051 151,689 176,071 42,710 43,174 44,503 45,684 47,448 3 Merchandise trade balance2. -9,306 -30,873 -34,187 -11,899 -7,907 - 8,012 -6,369 -6,098 4 Military transactions, net.......... 674 1,679 492 244 237 247 -239 -125 5 Investment income, net3........... 15,975 17,989 21,645 5,239 4, £54 4,952 6,599 6,776 6 Other service transactions, net. 2,260 1,783 3,241 708 703 819 1,010 933 7 Balance on goods and services3,4. 9,603 -9,423 -8,809 -5,707 -2,113 -1,994 1,001 1,486 8 Remittances, pensions, and other transfers... -1,851 -1,895 -1,934 -463 -486 -463 -524 -525 9 U.S. government grants (excluding military). -3,146 -2,775 -3,152 -765 -827 -770 -790 -804 10 Balance on current account3................................................... 4,605 -14,092 -13,895 -6,935 -3,426 -3,227 -313 157 11 Not seasonally adjusted3.................................................. -5,805 -2,858 -5,955 722 1,475 12 Change in U.S. government assets, other than official reserve assets, net (increase, —)................................... -4,214 -3,693 -4,656 -1,009 -1,263 -1,390 -994 -1,096 13 Change in U.S. official reserve assets (increase, —).., -2,558 -375 732 187 248 115 182 -3,589 14 Gold........................................................................... -118 -65 -65 15 Special drawing rights (SDRs)............................... -78 -121 1,249 -16 -104 -43 1,412 -l’,i42' 16 Reserve position in International Monetary Fund. - 2,212 -294 4,231 324 437 1<95 3,275 -86 17 Foreign currencies.................................................... -268 158 -4,683 -121 -85 -37 -4,440 -2,361 18 Change in U.S. private assets abroad (increase, — )3- -44,498 -31,725 -57,033 -14,366 -4,451 -8,774 -29,442 -1,473 19 Bank-reported claims.............................................. -21,368 -11,427 -33,023 -6,270 715 -5,488 -21,980 5,836 20 Nonbank-reported claims...................... -2,296 -1,940 -3,853 -2,241 315 -29 -1,898 21 Long-term............................................ -42 -99 -53 -63 78 61 -129 22 Short-term........................................... -2,254 -1,841 -3,800 -2,178 237 -90 -1,769 23 U.S. purchase of foreign securities, net. -8,885 -5,460 -3,487 -999 -1,095 -475 -918 -1,056 24 U.S. direct investments abroad, net3... -11,949 -12,898 -16,670 -4,856 -4,386 -2,782 -4,646 -6,253 25 Change in foreign official assets in the United States (increase, +)........................................................... 17,573 36,656 33,758 15,618 -5,265 4,641 18,764 -8,490 26 U.S. Treasury securities............................................ 9,319 30,230 23,542 12,904 -5,813 3,029 13,422 -8,871 27 Other U.S. government obligations........................ 573 2,308 656 117 211 443 -115 -5 28 Other U.S. government liabilities 5.......................... 4,507 1,240 2,754 723 -136 122 2,045 1 29 Other U.S. liabilities reported by U.S. banks......... 969 773 5,411 1,456 -164 963 3,156 153 30 Other foreign official assets6..................................... 2,205 2,105 1,395 418 637 84 256 215 31 Change in foreign private assets in the United States (increase, +)3................................................................ 18,826 14,167 29,956 2,557 6,207 10,717 10,475 12,832 32 U.S. bank-reported liabilities., 10,990 6,719 16,975 -404 1,865 7,958 7,556 8,124 33 U.S. nonbank-reported liabilities..................................... -578 473 1,640 498 315 1,004 -177 3 35 4 L Sh o o n r g t - - t t e e r r m m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 1,0 4 0 2 0 2 -5 9 2 9 0 3 1 -1 ,8 9 3 4 4 4 2 7 8 0 - 3 6 7 3 8 91 8 8 6 -24 6 5 8 36 Foreign private purchases of U.S. Treasury securities, net............................................................................... 2,783 534 2,180 881 803 -1,053 1,549 2,586 37 Foreign purchases of other U.S. securities, net.............. 1,284 2,713 2,867 453 1,347 528 540 790 38 Foreign direct investments in the United States, net3.... 4,347 3,728 6,294 1,130 1,877 2,280 1,008 1,332 39 Allocation of SDRs............................................................. 1,139 40 Discrepancy........................................................................... 10.265 -937 11.139 3,947 7,950 -2,082 1,328 519 41 Owing to seasonal adjustments........................................ 901 517 -2,716 1,301 999 42 Statistical discrepancy in recorded data before seasonal adjustment.................................................................. 10.265 -937 11.139 3,046 7,433 27 -480 Memo items Changes in official assets 43 U.S. official reserve assets (increase, —)........................... -2,558 -375 732 187 248 115 182 -3,589 44 Foreign official assets in the United States (increase, +)... 13,066 35,416 31,004 14,895 -5,129 4,519 16,719 -8,508 45 Changes in Organization of Petroleum Exporting Coun­ tries (OPEC) official assets in the Unites States (part of line 25 above)............................................................ 9,581 6,351 -727 1,969 -2,705 -1,794 1,803 -1,059 46 Transfers under military grant programs (excluded from lines 1, 4, and 9 above)............................................. 373 204 259 76 50 69 63 33 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 Nov. Dec. Jan. Feb. Mar. Apr. May 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments....................................... 115,156 121,150 r143,574 13,451 13,282 13,132 13,507 14,452 13,883 13,862 2 GENERAL IMPORTS including merchandise for immediate con­ sumption plus entries into bonded warehouses...................................... 121,009 147,685 172,026 14,825 15,032 16,231 14,806 15,273 16,036 16,342 3 Trade balance...................................... -5,853 -26,535 r —28,452 -1,374 -1,749 -3,099 -1,299 -821 -2,153 -2,480 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 Dec. Jan. Feb. Mar. Apr. May JuneP 1 Total1.................................................. 18,747 19,312 18,650 18,650 20,468 20,292 21,658 21,403 22,230 21,212 2 Gold stock, including Exchange Stabilization Fund1,2..................... 11,598 11,719 11,671 11,671 11,592 11,544 11,479 11,418 11,354 11,323 3 Special drawing rights1,3................... 2,395 2,629 '•1,558 1,558 2,661 2,672 2,667 2,602 2,624 6,026 4 Reserve position in International Monetary Fund1............................. 4,434 4,946 1,047 1,047 1,017 1,120 1,121 1,097 1,193 1,193 5 Foreign currencies4............................ 320 18 r4,374 4,374 5,198 4,956 6,391 6,286 7,059 2,670 1. Beginning July 1974, the IMF adopted a technique for valuing the 3. Includes allocations by the International Monetary Fund of SDRs as SDR based on a weighted average of exchange rates for the currencies follows: $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 of 16 member countries. The U.S. SDR holdings and reserve position in million on Jan. 1, 1972; and $1,139 million on Jan. 1, 1979; plus net the IMF also are valued on this basis beginning July 1974. transactions in SDRs. 2. Gold held under earmark at Federal Reserve Banks for foreign and 4. Beginning November 1978, valued at current market exchange rates. international accounts is not included in the gold stock of the United States; see table 3.24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics □ July 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 Oct. Nov. Dec. Jan. Feb. Mar. Apr.P All foreign countries 1Total, all currencies............................ 176,493 219,420 258,897 292,594 295,980 306,145 295,118 295,341 305,821 303,003 2 Claims on United States.................... 6,743 7,889 11,623 12,169 13,476 16,690 15,340 15,065 21,687 19,359 3 Parent bank..................................... 3,665 4,323 7,806 7,879 9,046 12,161 10,789 10,188 16,093 13,636 4 Other................................................ 3,078 3,566 3,817 4,290 4,430 4,529 4,551 4,877 5,594 5,723 5 Claims on foreigners........................... 163,391 204,486 238,848 269.410 *■271,418 278,135 268.116 268,052 271,189 270,757 6 Other branches of parent bank.... 34,508 45,955 55,772 67,748 68,403 70,340 66;653 64,249 64,973 64,079 7 Banks............................................... 69,206 83,765 91,883 98,104 MOO,993 102,805 97,696 99,147 101,235 101,620 8 Public borrowers1........................... 5,792 10,613 14,634 24,220 23,324 24,041 24,060 24,874 25,183 24,842 9 Nonbank foreigners....................... 53,886 64,153 76,560 79,338 78,698 80,949 79;707 79,782 79,798 80,216 10 Other assets......................................... 6,359 7,045 8,425 11,015 11,086 11,320 11;662 12,224 12,945 12,887 11 Total payable in U.S. dollars............. 132,901 167,695 193,764 210,938 218,289 224,290 214 .,312 '213,089 222,520 221,201 12 Claims on United States.................... 6,408 7,595 11,049 11,328 M2.580 15,732 14,506 14,130 20,653 18,389 13 Parent bank..................................... 3,628 4,264 7,692 7,688 8,877 11,975 10;596 9,958 15,901 13,397 14 Other................................................ 2,780 3,332 3,357 3,640 r3,703 3,757 3.910 4,172 4,752 4,992 15 Claims on foreigners.......................... 123,496 156,896 178,896 194,881 *"200,727 203,498 194,416 *•193,258 195,918 196,308 16 Other branches of parent bank.... 28,478 37,909 44,256 52,887 54,721 55,410 51 ,799 49,615 49,735 49,615 17 Banks.............................................. 55,319 66,331 70,786 72,644 '76,423 78,389 73,458 '74,382 76,734 77,408 18 Public borrowers1........................... 4,864 9,022 12,632 20,295 19,612 19,862 20,092 20,613 21,365 20,898 19 Nonbank foreigners....................... 34,835 43,634 51,222 49,055 49,971 49,837 49,067 48,648 48,084 48,387 20 Other assets........................................ 2,997 3,204 3,820 4,729 4,982 5,060 5,390 5,701 5,949 6,504 United Kingdom 21 Total, all currencies............................. 74,883 81,466 90,933 101,887 102,032 106,593 100,786 101,179 102,144 102,876 22 Claims on United States.................... 2,392 3,354 4,341 3,119 3,706 5,370 3,960 3,912 5,019 5,268 23 Parent bank..................................... 1,449 2,376 3,518 2,230 2,779 4,448 2,930 2,689 3,544 3,679 24 Other................................................ 943 978 823 889 927 922 1,030 1,223 1,475 1,589 25 Claims on foreigners.......................... 70,331 75,859 84,016 95,774 95,220 98,137 93,690 94,032 93,840 94,120 26 Other branches of parent bank.... 17,557 19,753 22,017 26,516 25,802 27,830 25,911 24,474 24,911 24,435 27 Banks............................................... 35,904 38,089 39,899 43,926 44,353 45,013 42,531 44,032 42,964 43,308 28 Public borrowers1........................... 881 1,274 2,206 4,692 4,526 4,522 4,549 4,548 4,608 4,547 29 Nonbank foreigners....................... 15,990 16,743 19,895 20,640 20,539 20,772 20,699 20,978 21,357 21,830 30 Other assets......................................... 2,159 2,253 2,576 2,994 3,106 3,086 3,136 3,235 3,285 3,488 31 57,361 61,587 66,635 70,209 71,761 75,860 70,502 70,525 71,499 72,015 32 Claims on United States.................... 2,273 3,275 4,100 2,877 3,475 5,113 3,738 3,618 4,710 4,946 33 Parent bank..................................... 1,445 2,374 3,431 2,187 2,727 4,386 2,878 2,610 3,488 3,612 34 Other................................................ 828 902 669 690 748 727 860 1,008 1,222 1.334 35 Claims on foreigners........................... 54,121 57,488 61,408 66,132 67,031 69,416 65,364 65,416 65,214 65,356 36 Other branches of parent bank.... 15,645 17,249 18,947 21,377 21,197 22,838 21,171 19,884 20,370 19,866 37 28,224 28,983 28,530 29,680 30,565 31,482 29,113 30,185 29,393 29,924 38 Public borrowers1........................... 648 846 1,669 3,595 3,467 3,317 3,342 3,414 3,523 3,429 39 9,604 10,410 12,263 11,480 11,802 11,779 11,738 11,933 11,928 12,137 40 Other assets........................................ 967 824 1,126 1,200 1,255 1,331 1,400 1,491 1,575 1,713 Bahamas and Caymans 41 Total, all currencies............................ 45,203 66,774 79,052 86,290 89,720 91,085 87,899 87,993 96,307 93,237 42 Claims on United States.................... 3,229 3,508 5,782 7,247 *•7,551 8,985 9,753 8,994 14,573 12,261 43 Parent bank.................................... 1,477 1,141 3,051 4,255 4,437 5,779 6,646 5,780 10,957 8,737 44 Other............................................... 1,752 2,367 2,731 2,992 '3,114 3,206 3,107 3,214 3,616 3,524 45 Claims on foreigners.......................... 41,040 62,048 71,671 76,867 '79,956 79,774 75,792 76,507 79,057 77,995 46 Other branches of parent bank.... 5,411 8,144 11,120 12,618 13,526 12,906 11,477 11,841 12,086 11,756 47 Banks.............................................. 16,298 25,354 27,939 30,317 r33,010 33,675 31,638 31,534 33,821 33.524 48 Public borrowers1........................... 3,576 7,105 9,109 12,088 11,529 11,514 11,392 12,125 12,573 12,360 49 Nonbank foreigners....................... 15,756 21,445 23,503 21,844 21,891 21,679 21,285 21,007 20,577 20,355 50 Other assets........................................ 933 1,217 1,599 2,176 2,213 2,326 2,354 2,492 2,677 2,981 51 Total payable in U.S. dollars............. 41,887 62,705 73,987 80,222 83,710 84,767 81,669 '81,725 389,848 87,280 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A57 3.13 Continued 19782 1979 Liability account 1975 1976 1977 Oct. Nov. Dec. Jan. Feb. Mar. Apr.*7 All foreign countries 52 Total, all currencies............................ 176,493 219,420 258,897 292,594 295,980 306,145 295,118 295,341 305,821 303,003 53 To United States................................ 20,221 32,719 44,154 49,974 55,651 57,005 '52,231 53,841 55,074 55,383 54 Parent bank.................................... 12,165 19,773 24,542 24,412 28,997 27,682 23,951 23.696 20,109 23,398 5 55 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 .. . . . . . . . . . . . . . . | 8 057 12 946 19 613 1 8 7 , , 3 2 6 0 2 0 1 9 7 , , 0 5 9 7 4 0 1 1 2 7, , 0 3 1 0 9 4 '20 8 , , 0 1 9 8 2 8 '2 '9 0 , , 1 9 6 79 6 2 1 2 2 , , 3 66 0 1 4 2 9 2 , , 8 1 7 0 8 7 57 Foreigners........................................... 149,815 179,954 206.579 233,023 230,707 238,973 232,687 231,398 240,306 237,248 58 Other branches of parent bank.... 34,111 44,370 53,244 r64,820 '65,711 '67,903 '65,155 62,559 62,593 62,090 59 Banks.............................................. 72,259 83,880 94,140 r95,673 '93,530 '97,338 '92,431 93,751 101,713 100,029 60 Official institutions......................... 22,773 25,829 28,110 33,612 32,212 31,936 31,137 31,704 34,262 33.016 61 Nonbank foreigners....................... 20,672 25,877 31,085 38,918 39,254 41,796 43,964 43,384 41,738 42,113 62 Other liabilities................................... 6,456 6,747 8,163 9,597 9,622 10,167 10,200 10,102 10,441 10,372 63 Total payable in U.S. dollars............. 135,907 173,071 198,572 215,517 222,873 230,160 '220,211 '219,733 228,177 225,759 64 To United States................................ 19,503 31,932 42,881 47,741 53,697 54,869 '50,202 51,651 52,982 53,416 65 Parent bank..................................... 11,939 19,559 24,213 23,432 28,124 26,611 '22,968 22,635 19,077 22,454 66 Other banks in United States........ 8,008 8,813 12,050 7,927 8,837 12,416 9,670 67 Nonbanks........................................ 16,301 16,760 16,208 '19,307 20,179 21,489 21,292 68 To foreigners...................................... 112,879 137,612 151,363 163,061 164,194 169,987 '164,418 '162,437 169,335 166,879 69 Other branches of parent bank___ 28,217 37,098 43,268 r51,877 '53,227 '53,803 '51,214 48,650 48,377 48,489 70 Banks.............................................. 51,583 60,619 64,872 r58,626 '58,429 '62,627 '58,116 '58,808 65,150 63,866 71 Official institutions......................... 19,982 22,878 23,972 27,707 26,667 '26,404 25,567 26,089 28,511 27,117 72 Nonbank foreigners....................... 13,097 17,017 19,251 24,851 25,871 27,153 '29,521 28,890 27,297 27,407 73 Other liabilities................................... 3,526 3,527 4,328 4,715 4,982 5,304 5,591 5,645 5,860 5,464 United Kingdom 74 Total, all currencies.......................... 74,883 81,466 90,933 101,887 102,032 106,593 100,786 101,179 102,144 102,876 75 To United States............................... 5,646 5,997 7,753 7,560 8,295 9,730 8,118 9,538 10,086 10,756 76 Parent bank................................... 2,122 1,198 1,451 1,389 1,609 1,887 1,585 2,055 1,461 1,814 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 .. . . . .. . . . . ) 1 O'? 4A , 7fQyQo O, JUZ 2 3 , , 9 2 4 2 9 2 3 3 , , 2 4 3 5 4 2 4 3 , , 2 61 3 1 2 2 3 , , 6 8 9 4 3 0 4 3 , , 2 2 6 1 7 6 4 3 , , 9 6 4 7 8 7 3 5, , 4 54 0 1 1 79 To foreigners.................................... 67,240 73,228 80,736 90,766 90,105 93,202 ' 88,942 87,798 88,068 88,199 80 Other branches of parent bank... 6,494 7,092 9,376 12,030 13,015 12,786 12,712 11,303 10,910 11,023 81 Banks............................................. 32,964 36,259 37,893 38,854 37,795 39,917 36,142 36,655 38,318 39,391 82 Official institutions....................... 16,553 17,273 18,318 21,980 20,940 20,963 19,700 20,313 21,845 20,115 83 Nonbank foreigners..................... 11,229 12,605 15,149 17,902 18,355 19,536 20,388 19,527 16,995 17,670 84 Other liabilities................................. 1,997 2,241 2,445 3,561 3,632 3,661 3,726 3,843 3,990 3,921 85 Total payable in U.S. dollars........... 57,820 63,174 67,573 71,158 72,812 77,030 72,048 72,293 72,639 72,653 86 To United States............................... 5,415 5,849 7,480 7,198 7,908 9,328 7,736 9,179 9,756 10,414 87 Parent bank................................... 2,083 1,182 1,416 1,329 1,563 1,836 1,539 2,018 1,418 1,780 8 8 8 9 O N t o h 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 .. . . . .. . . . . ) 'I 'I'lO 4,667 o,Uo4 2 2 , , 9 9 6 0 7 2 3 3, , 1 16 7 7 8 4 3 , , 1 3 4 48 4 2 3 , , 6 5 0 9 1 6 4 3 , , 0 1 3 2 9 2 4 3 , , 7 6 1 2 2 6 5 3 , , 1 4 4 9 2 2 90 To foreigners..................................... 51,447 56,372 58,977 62,589 63,389 66,216 62,629 61,405 61,215 60,714 91 Other branches of parent bank... 5,442 5,874 7,505 9,169 10,174 9,635 9,890 8,393 7,985 7,706 92 Banks............................................. 23,330 25,527 25,608 22,837 22,672 25,287 21,642 21,911 23,017 24,002 93 Official institutions....................... 14,498 15j423 15,482 17,893 17,075 17,091 15,834 16,544 18,030 16,197 94 Nonbank foreigners..................... 8,176 9,547 10,382 12,690 13,468 14,203 15,263 14,557 12,183 12,809 95 Other liabilities................................. 959 953 1,116 1,371 1,515 1,486 1,683 1,709 1,668 1,525 Bahamas and Caymans 96 Total, all currencies.......................... 45,203 66,774 79,052 86,290 89,720 91,085 87,899 87,993 96,307 93,237 97 To United States............................... 11,147 22,721 32,176 35,677 40,631 38,781 36,927 36,546 37,478 37,103 98 Parent bank................................... 7,628 16,161 20,956 18,045 22,252 19,806 17,054 15,726 13,681 16,032 99 Other banks in United States.... 4,415 4,852 6,199 4,275 4,863 7,158 5,220 100 Nonbanks...................................... i 3,520 6,560 11 11 , ZOlOVA) 13,217 13,527 12,776 15,598 15,957 16,639 15,851 101 To foreigners.................................... 32,949 42,899 45,292 48,953 47,400 50,447 49,153 49,534 56,730 54,124 102 Other branches of parent bank... 10,569 13,801 12,816 15,635 14,715 16,094 14,266 13,697 13,958 14,738 103 Banks............................................. 16,825 21,760 24,717 22,512 21,974 23,104 22,290 23,299 28,717 25,942 104 Official institutions....................... 3,308 3,573 3,000 4,402 4,306 4,208 4,602 4,429 5,168 5,328 105 Nonbank foreigners..................... 2,248 3,765 4,759 6,404 6,405 7,041 7,995 8,109 8,887 8,116 106 Other liabilities................................. 1,106 1,154 1,584 1,660 1,689 1,857 1,819 1,913 2,099 2,010 107 Total payable in U.S. dollars........... 42,197 63,417 74,463 81,323 85,012 86,364 83,152 '83,331 91,471 88,347 1. In May 1978 a broader category of claims on foreign public bor- 2. In May 1978 the exemption level for branches required to report rowers, including corporations that are majority owned by foreign govern- was increased, which reduced the number of reporting branches, ments, 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 □ July 1979 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1978 1979 Item 1976 1977 1978 Nov. Dec. Jan. Feb. Mar. Apr. May** A. By type 1 Total i..................................................................... 95,634 131,097 162,303 156,285 162,303 162,656 159,813 153,620 147,447 140,146 2 Liabilities reported by banks in the United 17,231 18,003 23,086 21,719 23,086 22,600 23,163 22,534 24,235 25,006 37,725 47,820 67,650 62,635 67,650 68,415 65,558 59,652 51,460 43,576 U.S. Treasury bonds and notes 11,788 32,164 35,877 36,222 35,877 36,026 35,509 36,033 36,275 36,126 20,648 20,443 20,970 20,993 20,970 20,952 20,912 20,471 20,467 20,467 6 U.S. securities other than U.S. Treasury 8,242 12,667 14,720 14,716 14,720 14,663 14,671 14,930 15,010 14,971 B. By area 7 Total....................................................................... 95,634 131,097 162,303 156,285 162,303 162,656 159,813 153,620 147,447 140,146 8 Western Europe1................................................... 45,882 70,748 92,946 88,412 92,946 94,397 92,587 90,166 85,006 80,791 9 Canada................................................................... 3,406 2,334 2,486 2,446 2,486 2,150 1,911 3,088 3,044 1,993 10 Latin America and Caribbean............................. 4,926 4,649 5,029 4,499 5,029 4,330 4,402 4,201 4,764 4,923 11 Asia......................................................................... 37,767 50,693 58,656 57,834 58,656 58,962 57,753 53,358 51,270 49,020 1,893 1,742 2,443 2,301 2,443 2,299 2,371 2,134 2,527 2,602 13 Other countries6.................................................... 1,760 931 743 793 743 518 789 673 836 817 1. Includes the Bank for Internationa! 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 bonds and notes payable in foreign currencies. 3.15 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign Currencies Millions of dollars, end of period 1978 1979 Item 1975 1976 1977 June Sept. Dec. Mar.? 1 Banks’ own liabilities..................................................................... 560 781 925 1,464 1,768 2,233 1,989 2 Banks’ own claims1....................................................................... 1,459 1,834 2,356 2,622 2,989 3,565 2,646 3 Deposits.................................................................................. 656 1,103 941 1,084 1,400 1,734 1,157 4 Other claims............................................................................... 802 731 1,415 1,538 1,589 1,831 1,489 5 Claims of banks’ domestic customers2........................................ 809 446 367 476 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 the accounts of their domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-reported Data A59 3.16 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 Nov. Dec. Jan. Feb. Mar. Apr.P Mayp A. By Holder and Type of Liability 1 All foreigners............... 95,590 110,657 126,168 158,231 166,011 163,824 163,479 166,307 159,072 157,754 2 Banks’ own liabilities.. 75,265 77,711 74,210 76,287 85,242 85,560 92,836 3 Demand deposits.... 13,564 16,803 18,996 18,264 19,199 17,785 17,201 16,696 18,367 18,092 4 Time deposits1......... 10,267 11,347 11,521 12,514 12,298 12,120 11,967 12,389 12,520 12,684 5 Other2....................... 8,641 9,527 8,889 9,235 8,321 10,079 13,292 6 Own foreign offices3. 35,847 36,687 35,416 37,883 47,836 44,593 48,769 7 Banks’ custody liabilities4.................................... 82,966 88,300 89,614 87,192 81,065 73,512 64,917 8 U.S. Treasury bills and certificates5................. 37,414 40,744 48,906 63,130 68,178 68,999 66,508 60,587 53,280 44,966 9 Other negotiable and readily transferable instruments6................................................... 17,439 17,581 18,197 18,504 18,309 18,083 17,748 10 Other................................................................... 2,397 2,541 2,418 2,180 2,169 2,150 2,203 11 Nonmonetary international and regional organizations7............................................... 5,699 5,714 2,225 2,617 2,317 2,095 2,364 2,300 2,757 12 Banks’ own liabilities. 417 916 762 506 769 791 1,306 13 Demand deposits... 139 290 231 153 330 333 272 276 270 298 14 Time deposits1....... 148 205 139 102 94 88 102 99 100 85 15 Other2..................... 161 492 340 131 394 422 923 16 Banks’ custody liabilities4..................................... 1,809 1,701 1,555 1,589 1,595 1,509 1,451 17 U.S. Treasury bills and certificates................. 2,554 2,701 706 183 201 183 193 211 212 175 18 Other negotiable and readily transferable instruments6................................................ 1,625 1,499 1,367 1,393 1,382 1,294 1,274 19 Other................................................................... 1 1 5 3 2 2 1 20 Official institutions8.. 50,461 54,956 65,822 84,050 90,481 90,828 88,721 82,186 75,695 68,582 21 Banks’ own liabilities. 10,829 11,732 10,504 11,077 10,425 12,406 13,591 22 Demand deposits... 2,644 3,394 3,528 3,416 3,389 2,699 2,759 2,864 3,583 3,170 23 Time deposits1....... 3,423 2,321 1,797 2,345 2,334 2,288 2,169 2,524 2,491 2,515 24 Other2..................... 5,068 6,008 5,517 6,149 5,036 6,332 7,905 25 Banks’ custody liabilities4................................... 73,221 78,749 80,324 77,645 71,762 63,288 54,992 26 U.S. Treasury bills and certificates5............... 34,199 37,725 47,820 62,331 67,394 68,228 65,558 59,652 51,460 43,576 27 Other negotiable and readily transferable instruments6................................................. 10,783 11,185 11,905 12,026 12,067 11,789 11,346 28 Other................................................................. 107 170 191 60 43 40 70 29 Banks9. 29,330 37,174 42,335 55,363 56,861 54,683 56,006 65,915 64,030 69,662 30 Banks’ own liabilities............ 50,529 52,035 49,932 51,218 61,005 59,063 64,494 31 Unaffiliated foreign banks. 14,682 15,349 14,517 13,335 13,169 14,469 15,726 32 Demand deposits............. 7,534 9,104 10,933 10,066 11,239 10,425 9,426 9,349 10,202 10,265 33 Time deposits1................. 1,873 2,297 2,040 1,735 1,489 1,479 1,322 1,262 1,306 1,320 34 Other2.............................. 2,881 2,621 2,612 2,587 2,558 2,962 4,141 35 Own foreign offices 3. 35,847 36,687 35,416 37,883 47,836 44,593 48,769 36 Banks’ custody liabilities4................................. 4,834 4,826 4,751 4,788 4,910 4,967 5,168 37 U.S. Treasury bills and certificates.............. 335 119 141 371 300 302 399 425 456 522 38 Other negotiable and readily transferable instruments6............................................... 2,561 2,417 2,422 2,416 2,421 2,489 2,579 39 Other............................................................... 1,902 2,109 2,027 1,973 2,064 2,022 2,066 40 Other foreigners. 10,100 12,814 14,736 16,593 16,052 15,995 16,657 15,842 17,047 16,753 41 Banks’ own liabilities. 13,490 13,028 13,012 13,487 13,044 13,299 13,445 42 Demand deposits... 3,248 4,015 4,304 4,628 4,242 4,328 4,744 4,207 4.312 4.358 43 Time deposits1....... 4,823 6,524 7,546 8,331 8,380 8,264 8,375 8,504 8,623 8,765 44 Other2..................... 531 406 420 368 333 364 323 45 Banks’custody liabilities4................................. 3,103 3,024 2,983 3,170 2,798 3,748 3,307 46 U.S. Treasury bills and certificates............... 325 198 240 245 282 285 358 299 1,152 693 47 Other negotiable and readily transferable instruments6............................................... 2,471 2,480 2,503 2,669 2,439 2,511 2,549 48 Other............................................................... 387 262 195 143 60 85 66 49 Memo: Negotiable time certificates of deposit held in custody for foreigners......................... 10,821 10,926 11,080 11,021 11,254 11,081 10,794 1. Excludes negotiable time certificates of deposit, which are included payable in foreign currencies through 1974) and Treasury bills issued to in “Other negotiable and readily transferable instruments.” official institutions of foreign countries. 2. Includes borrowing under repurchase agreements. 6. Principally bankers acceptances, commercial paper, and negotiable 3. U.S. banks: includes amounts due to own foreign branches and time certificates of deposit. foreign subsidiaries consolidated in “Consolidated Report of Condition” 7. Principally the International Bank for Reconstruction and Develop­ filed with bank regulatory agencies. Agencies, branches, and majority- ment, and the Inter-American and Asian Development Banks. owned subsidiaries of foreign banks: principally amounts due to head 8. Foreign central banks and foreign central governments and the office or parent foreign bank, and foreign branches, agencies or wholly- Bank for International Settlements. owned subsidiaries of head office or parent foreign bank. 9. Excludes central banks, which are included in “Official institutions.” 4. Financial claims on residents of the United States, other than long­ term securities, held by or through reporting banks. Note. Data for time deposits prior to April 1978 represent short-term 5. Includes nonmarketable certificates of indebtedness (including those only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics □ July 1979 3.16 Continued 1978 1979 Item 1975 1976 1977 Nov. Dec. Jan. Feb. Mar. Apr.** May*> B. By Area and Country 1 Total....................................................................... 95,590 110,657 126,168 158,231 166,011 163,824 163,479 166,307 159,072 157,754 2 Foreign countries.................................................... 89,891 104,943 122,893 156,006 163,394 161,507 161,385 163,943 156,772 154,997 3 Europe.................................................................... 44,072 47,076 60,295 78,129 84,605 83,774 81,670 81,899 77,152 75,110 4 Austria................................................................ 759 346 318 514 506 555 505 524 484 475 5 Belgium-Luxembourg........................................ 2,893 2,187 2,531 2,471 2,546 2,481 2,179 2,443 2,359 2,287 6 Denmark............................................................ 329 356 770 1,827 1,946 2,036 2,074 2,131 1,596 1,526 7 Finland............................................................... 391 416 323 388 346 379 357 361 367 399 8 France................................................................. 7,726 4,876 5,269 8,817 8,631 8,377 8,173 8,891 9,291 9,755 9 Germany............................................................ 4,543 6,241 7,239 15,652 17,286 15,770 13,868 12,997 9,364 7,619 10 Greece................................................................. 284 403 603 907 826 683 761 671 656 673 11 1,059 3,182 6,857 7,761 7,674 8,723 8,056 8,142 8,939 9,751 12 Netherlands........................................................ 3,407 3,003 2,869 2,518 2,402 2,536 2,786 2,766 2,825 2,888 13 Norway............................................................... 994 782 944 1,102 1,271 1,411 1,445 1,572 1,477 1,456 14 Portugal.............................................................. 193 239 273 379 330 254 246 279 231 244 15 Spain................................................................... 423 559 619 885 778 759 704 763 950 813 16 Sweden............................................................... 2,277 1,692 2,712 3,216 3,131 2,955 2,656 2,520 2,596 2,524 17 Switzerland......................................................... 8,476 9,460 12,343 15,463 18,564 19,864 19,808 18,563 15,637 13,710 18 Turkey................................................................ 118 166 130 163 157 141 141 132 110 127 19 United Kingdom................................................ 6,867 10,018 14,125 12,826 14,214 13,080 13,788 15,370 15,925 16,682 20 Yugoslavia.......................................................... 126 189 232 190 254 174 184 176 207 184 21 Other Western Europe1..................................... 2,970 2,673 1,804 2,777 3,334 3,296 3,706 3,284 3,795 3,684 22 U.S.S.R............................................................... 40 51 98 73 82 150 62 59 84 58 23 Other Eastern Europe2...................................... 197 236 236 198 325 150 171 258 258 254 24 Canada................................................................... 2,919 4,659 4,607 8,073 6,963 6,622 7,037 8,044 8,819 7,895 25 Latin America and Caribbean............................. 15,028 19,132 23,670 31,111 31,470 30,909 32,257 38,067 36,023 39,994 26 Argentina............................................................ 1,146 1,534 1,416 1,504 1,498 1,682 1,789 1,534 1,483 1,886 27 Bahamas............................................................. 1,874 2,770 3,596 6,309 6,615 7,391 7,283 13,078 9,965 11,164 28 Bermuda............................................................. 184 218 321 425 428 386 464 375 351 345 29 Brazil................................................................... 1,219 1,438 1,396 1,234 1,130 1,099 1,150 1,137 1,251 1,581 30 British West Indies............................................ 1,311 1,877 3,998 6,692 5,978 5,715 6,846 6,971 6,916 9,315 31 Chile................................................................... 319 337 360 341 399 376 358 343 447 368 32 Colombia............................................................ 417 1,021 1,221 1,612 1,756 1,769 1,867 1,925 2,065 2,192 33 Cuba................................................................... 6 6 6 7 13 7 13 6 7 9 34 Ecuador.............................................................. 120 320 330 348 322 321 274 330 335 318 35 Guatemala 3........................................................ 357 416 352 386 339 360 318 36 Jamaica3........................................................... 43 52 72 43 75 80 78 37 Mexico................................................................ 2,070 2,870 2,876 3,413 3,397 3,178 3,158 3,178 3,234 3,215 38 Netherlands Antilles4........................................ 129 158 196 368 308 321 361 318 335 396 39 Panama............................................................... 1,115 1,167 2,331 2,808 2,992 2,818 2,491 2,938 3,368 2,909 40 Peru..................................................................... 243 257 287 337 363 320 347 403 360 321 41 Uruguay............................................................. 172 245 243 211 233 222 220 236 230 223 42 Venezuela............................................................ 3,309 3,118 2,929 3,550 3,809 3,336 3,705 3,211 3,426 3,672 43 Other Latin America and Caribbean............... 1,393 1,797 2,167 1,553 1,760 1,544 1,501 1,669 1,809 1,684 44 22,384 29,766 30,488 34,843 36,394 36,650 36,485 32,211 30,642 27,735 45 China (Mainland).............................................. 123 48 53 57 67 65 105 280 45 41 46 China (Taiwan).................................................. 1,025 990 1,013 1,247 499 546 505 600 667 605 47 Hong Kong........................................................ 605 894 1,094 1,189 1,256 1,400 1,436 1,254 1,453 1,496 48 India................................................................... 115 638 961 843 790 804 838 857 929 1,016 49 Indonesia............................................................ 369 340 410 439 449 575 357 479 567 394 50 Israel................................................................... 387 392 559 469 674 669 625 608 695 679 51 Japan................................................................... 10,207 14,363 14,616 21,355 21,969 21,428 21,764 18,110 14,848 12,262 52 Korea................................................................. 390 438 602 750 795 771 827 748 728 996 53 Philippines......................................................... 700 628 687 578 639 612 549 642 562 609 54 Thailand............................................................. 252 277 264 279 427 379 307 277 343 302 55 Middle East oil-exporting countries5............... 7,355 9,360 8,979 6,381 7,420 8,120 7,872 7,107 8,435 7,923 56 Other Asia.......................................................... 856 1,398 1,250 1,256 1,411 1,283 1,300 1,249 1,371 1,412 57 3,369 2,298 2,535 2,636 2,886 2,693 2,804 2,650 2,986 3,056 58 Egypt................................................................... 342 333 404 312 404 337 278 329 359 297 59 Morocco............................................................. 68 87 66 30 32 29 32 43 34 36 60 South Africa...................................................... 166 141 174 294 168 179 207 242 246 206 61 Zaire................................................................... 62 36 39 43 43 48 42 50 55 47 62 Oil-exporting countries®.................................... 2,240 1,116 1,155 1,335 1,525 1,379 1,549 1,256 1,554 1,523 63 Other Africa....................................................... 491 585 698 622 715 721 697 729 738 946 64 Other countries...................................................... 2,119 2,012 1,297 1,214 1,076 860 1,132 1,072 1,149 1,207 65 Australia............................................................. 2,006 1,905 1,140 977 838 655 934 862 957 992 66 All other............................................................. 113 107 158 236 239 204 198 211 192 215 67 Nonmonetary international and regional organizations.................................................. 5,699 5,714 3,274 2,225 2,617 2,317 2,095 2,364 2,300 2,757 68 International...................................................... 5,415 5,157 2,752 1,033 1,485 1,210 919 1,189 1,128 1,535 69 Latin American regional................................... 188 267 278 870 808 809 865 872 872 892 70 Other regional 7.................................................. 96 290 245 323 324 299 311 303 300 330 1. Includes the Bank for International Settlements. Beginning April 5. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, 1978, also includes Eastern European countries not listed in line 23. and United Arab Emirates (Trucial States). 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, German 6. Comprises Algeria, Gabon, Libya, and Nigeria. Democratic Republic, Hungary, Poland, and Romania. 7. Asian, African, Middle Eastern, and European regional organizations, 3. Included in “Other Latin America and Caribbean” through March except the Bank for International Settlements, which is included in 1978. “Other Western Europe.” 4. Includes Surinam through December 1975. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-reported, Data A61 3.17 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 Nov. Dec. Jan. Feb. Mar. Apr.*3 May*5 1 58,308 79,301 90,206 105,425 114,606 105,406 103,938 108,736 104,537 105,752 58,275 79,261 90,163 105,379 114,550 105,366 103,899 108,690 104,490 105,706 11,109 14,776 18,114 20,565 24,181 20,743 20,454 21,299 20,879 20,576 4 Austria................................................................ 35 63 65 142 140 147 115 177 130 150 5 Belgium-Luxembourg........................................ 286 482 561 1,232 1,200 1,504 1,376 1,804 1,377 1,330 6 Denmark............................................................. 104 133 173 193 254 172 170 166 204 168 7 Finland................................................................ 180 199 172 260 305 281 264 297 250 189 8 France................................................................. 1,565 1,549 2,082 2,716 3,737 2,629 2,275 2,921 2,907 2,711 9 Germany............................................................. 380 509 644 838 900 840 717 907 806 792 10 Greece................................................................. 290 279 206 134 164 162 169 192 170 155 11 Italy..................................................................... 443 993 1,334 1,453 1,504 1,402 1,395 1,311 1,420 1,440 12 Netherlands........................................................ 305 315 338 602 680 681 619 581 532 531 13 131 136 162 282 299 251 252 206 242 196 14 Portugal.............................................................. 30 88 175 180 171 169 173 209 208 190 15 Spain................................................................... 424 745 722 980 1,110 905 1,103 909 806 926 16 Sweden................................................................ 198 206 218 465 537 449 388 312 300 231 17 199 379 564 1,045 1,283 1,051 970 1,068 878 958 18 164 249 360 283 283 179 132 144 148 119 19 United Kingdom................................................ 5,170 7,033 8,964 8,417 10,124 8,444 8,886 8,575 8,674 8,823 20 210 234 311 302 363 400 409 448 475 492 21 Other Western Europe i..................................... 76 85 86 107 122 135 110 124 424 171 22 406 485 413 321 366 327 309 319 298 291 23 Other Eastern Europe2..................................... 513 613 566 612 638 617 621 628 633 713 24 Canada................................................................... 2,834 3,319 3,355 4,522 5,142 4,961 5,049 5,181 4,748 4,738 25 Latin America and Caribbean............................. 23,863 38,879 45,850 54,346 56,507 52,372 50,390 54,149 51,443 52,520 26 Argentina............................................................ 1,377 1,192 1,478 1,698 2,266 2,134 2,360 2,753 3,098 3,406 27 Bahamas.............................................................. 7,583 15,464 19,858 23,546 21,118 20,873 18,640 19,899 18,121 18,824 28 Bermuda.............................................................. 104 150 232 141 189 175 155 150 135 196 29 Brazil................................................................... 3,385 4,901 4,629 6,137 6,251 6,259 6,259 6,291 6,198 6,274 30 British West Indies............................................ 1,464 5,082 6,481 6,432 9,173 5,368 5,122 7,435 5,524 4,859 31 Chile.................................................................... 494 597 675 862 968 1,012 939 964 970 1,058 32 Colombia............................................................ 751 675 671 936 1,012 1,054 1,019 1,004 945 1,017 33 14 13 10 4 * * * 4 4 4 34 Ecuador.............................................................. 252 375 517 680 705 700 768 839 903 877 35 Guatemala 3........................................................ 89 94 87 110 89 95 101 36 Jamaica3............................................................. 49 40 37 48 61 63 64 37 Mexico................................................................ 3,745 4,822 4,909 5,255 5,417 5,449 5,398 5,562 5,778 6,000 38 Netherlands Antilles4........................................ 72 140 224 242 268 259 222 282 213 234 39 1,138 1,372 1,410 2,531 3,074 3,179 3,493 2,900 3,486 3,728 40 Peru..................................................................... 805 933 962 931 918 873 846 834 839 744 41 Uruguay.............................................................. 57 42 80 58 52 50 44 46 48 61 42 Venezuela............................................................ 1,319 1,828 2,318 3,367 3,474 3,324 3,481 3,527 3,555 3,601 43 Other Latin America and Caribbean............... 1,302 1,293 1,394 1,388 1,487 1,538 1,487 1,512 1,468 1,472 44 Asia......................................................................... 17,706 19,204 19,236 22,743 25,511 24,232 25,102 25,131 24,562 24,949 45 China (Mainland).............................................. 22 3 10 6 4 15 13 16 20 22 46 China (Taiwan).................................................. 1,053 1,344 1,719 1,356 1,499 1,457 1,767 1,841 1.809 1,812 47 Hong Kong........................................................ 289 316 543 1,385 1,573 1,620 1,952 2,036 1,704 1,993 48 India.................................................................... 57 69 53 46 54 61 60 52 73 56 49 Indonesia............................................................ 246 218 232 188 143 141 123 124 135 138 50 Israel.................................................................... 721 755 584 719 872 996 896 909 781 826 51 10,944 11,040 9,839 11,997 12,734 12,566 12,220 12,811 12,076 12,342 52 Korea.................................................................. 1,791 1,978 2,336 1,792 2,277 2,239 2,478 2,546 2,712 2,966 53 Philippines.......................................................... 534 719 594 717 680 607 692 660 710 705 54 Thailand.............................................................. 520 442 633 758 753 753 830 778 760 836 55 Middle East oil-exporting countries5............... 744 1,459 1,746 2,188 3,118 2,333 2,487 1,939 2,437 1,723 56 785 863 947 1,592 1,804 1,446 1,585 1,419 1,344 1,531 57 Africa..................................................................... 1,933 2,311 2,518 2,163 2,221 2,145 2,092 1,968 1,977 1,967 58 Egypt................................................................... 123 126 119 68 107 82 83 73 104 121 59 8 27 43 36 82 97 88 66 64 46 60 South Africa....................................................... 657 957 1,066 906 860 838 760 701 680 719 61 Zaire................................................................... 181 112 98 162 164 156 155 155 151 151 62 Oil-exporting countries6.................................... 382 524 510 439 452 438 456 455 462 460 63 581 565 682 551 556 533 550 518 516 471 830 772 1,090 1,041 988 914 813 961 882 956 65 Australia............................................................. 700 597 905 894 877 792 704 830 755 789 66 130 175 186 147 111 122 108 131 127 167 67 Nonmonetary international and regional organizations 7................................................... 33 40 43 45 56 40 39 46 46 46 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, Czechoslavkia, 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. 4. Includes Surinam through December 1975. 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 □ July 1979 3.18 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 Nov. Dec. Jan. Feb. Mar. Apr. May? 1 Total....................................................................... 58,308 79,301 90,206 125,641 r120,383 2 Banks’ own claims on foreigners......................... 105,425 114,606 105,406 103,938 '108,736 104,537 105,752 3 Foreign public borrowers...................................... 9,235 10,047 10,304 10,498 '10,774 11,000 10,536 4 Own foreign offices1.............................................. 40,403 40,882 37,933 35,581 '36,931 35,471 34,665 5 Unaffiliated foreign banks..................................... 33,552 40,379 34,494 34,718 '37,388 34,558 35,791 6 Deposits.............................................................. 4,396 5,506 4,670 5,146 '6,340 5,698 5,797 7 Other................................................................... 29,157 34,873 29,824 29,572 '31,048 28,861 29,994 8 All other foreigners................................................ 22,234 23,298 22,674 23,141 '23,643 23,508 24,759 9 Claims of banks’ domestic customers2............... 11,035 11,646 10 Deposits.................................................................. 972 1,143 11 Negotiable and readily transferable in­ struments 3.......................................................... 4,762 4,863 12 Outstanding collections and other claims4.......... 5,467 5,756 6,176 5,301 5,640 13 Memo: Customer liability on acceptances 14,913 15,082 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 5................................................................. 11,290 13,978 14,745 14,917 15,556 1. U.S. banks: includes amounts due from own foreign branches and 4. Data for March 1978 and for period prior to that are outstanding foreign subsidiaries consolidated in “Consolidated Report of Condition” collections only. filed with bank regulatory agencies. Agencies, branches, and majority- 5. Includes demand and time deposits and negotiable and nonnegotiable owned subsidiaries of foreign banks: principally amounts due from head certificates of deposit denominated in U.S. dollars issued by banks abroad. office or parent foreign bank, and foreign branches, agencies, or wholly- For description of changes in data reported by nonbanks, see “Announce­ owned subsidiaries of head office or parent foreign bank. ments,” page 550. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks Note. Beginning April 1978, data for banks’ own claims are given for the account of their domestic customers. on a monthly basis, but the data for claims of banks’ domestic customers 3. Principally negotiable time certificates of deposit and bankers ac­ are available on a quarterly basis only. ceptances. 3.19 BANKS’ OWN CLAIMS ON UNAFFILIATED F 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 Sept. June Sept. 1 Total............................................... 55,433 59,907 73,468 71,139 By borrower 2 Maturity of 1 year or less1........... 44,103 47,055 58,185 54,949 3 Foreign public borrowers......... 3,067 3,702 4,528 4,581 4 All other foreigners................... 41,036 43,353 53,658 50,368 5 Maturity of over 1 year1.............. 11,330 12,852 15,282 16,190 6 Foreign public borrowers......... 2,931 3,925 5,315 5,946 7 All other foreigners................... 8,399 8,927 9,967 10,245 By area Maturity of 1 year or less1 8 Europe........................................ 9,627 10,454 15,049 12,107 9 Canada....................................... 1,598 1,948 2,670 2,528 10 Latin American and Caribbean 17,203 18,759 20,867 21,535 11 Asia............................................ 13,695 13,769 17,534 16,939 12 Africa......................................... 1,457 1535 1,496 1,299 13 All other2.................................. 523 591 569 541 Maturity of over 1 year1 14 Europe........................................ 2,920 3,104 3,158 3,108 15 Canada....................................... 344 794 1,426 1,456 16 Latin America and Caribbean.. 5,886 6,859 8,448 9,312 17 Asia........................................... 1,298 1,305 1,401 1,515 18 Africa......................................... 631 580 636 619 19 All other2.................................. 252 211 214 180 1. Remaining time to maturity. Note. The first available data are for June 1978. 2. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A63 3.20 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1 Billions of dollars, end of period 1977 1978 1979 1975 1976 Mar. June Sept. Dec. Mar. June2 Sept. Dec. Mar. 1Total........................................................................... 167.0 207.7 206.7 217.8 226.7 239.4 247.2 246.0 247.3 266.6 264.9 2 G-10 countries and Switzerland............................... 88.0 100.1 99.7 104.1 108.8 115.3 116.6 112.8 113.9 125.3 119.2 3 Belgium-Luxembourg............................................ 5.3 6.1 6.4 6.3 7.1 8.4 8.3 8.3 8.4 9.0 9.4 4 France..................................................................... 8.5 10.0 10.2 10.6 10.5 11.0 11.4 11.4 11.7 12.4 11.7 5 Germany................................................................. 7.8 8.7 7.8 8.2 8.6 9.6 9.0 9.1 9.7 11.4 10.7 6 Italy......................................................................... 5.2 5.8 6.0 6.4 6.0 6.5 6.0 6.4 6.0 6.6 5.7 7 Netherlands............................................................ 2.8 2.8 2.6 3.1 3.0 3.5 3.4 3.4 3.5 4.4 3.8 8 Sweden.................................................................... 1.0 1.2 1.4 1.7 1.9 1.9 2.0 2.1 2.2 2. 1 2.0 9 Switzerland............................................................. 2.4 3.0 2.5 3.0 3.3 3.3 4.0 4.1 4.3 5.4 4.5 10 United Kingdom.................................................... 36.3 41.5 40.4 41.4 44.1 46.5 46.5 45.0 44.4 47.2 46.4 11 Canada.................................................................... 3.8 5.1 6.1 6.4 6.6 5.8 6.9 5.1 4.9 5.9 5.8 12 Japan....................................................................... 14.9 15.9 16.4 17.0 17.6 18.8 19.1 17.9 18.8 20.9 19.2 13 Other developed countries........................................ 10.7 15.1 16.3 16.9 18.1 18.6 20.5 19.3 18.7 19.2 18.2 14 Austria..................................................................... .7 1.2 1.2 1.2 1.3 1.3 1.5 1.5 1.5 1.7 1.7 15 Denmark................................................................. .6 1.0 1.2 1.4 1.5 1.6 1.6 1.7 1.9 2.0 2.0 16 Finland.................................................................... .9 1.1 1.1 1.1 1.2 1.2 1.2 1.1 1.0 1.2 1.1 17 Greece..................................................................... 1.4 1.7 1.7 1.8 2.0 2.2 2.7 2.3 2.2 2.3 2.3 18 Nor wav................................................................... 1.4 1.5 1.7 1.7 1.8 1.9 1.9 2.1 2.1 2.1 2.1 19 Portugal................................................................... .3 .4 .5 .5 .6 .6 .7 . 6 .5 .6 .6 20 Spain....................................................................... 1.9 2.8 3.0 3.2 3.5 3.6 3.6 3.6 3.5 3.4 3.0 21 Turkey..................................................................... .6 1.3 1.4 1.4 1.4 1.5 1.5 1.4 1.5 1.5 1.4 22 Other Western Europe........................................... .6 .7 .8 .8 1.2 .9 1.4 1.2 1.0 1.0 1.0 23 1.2 2.2 2.3 2.3 2.3 2.4 2.5 2.4 2.2 2.0 1.7 24 Australia................................................................. 1.3 1.2 1.4 1.5 1.5 1.4 1.9 1.4 1.3 1.4 1.3 25 Oil-exporting countries 3............................................ 6.9 12.6 13.3 15.0 16.5 17.6 19.2 19.1 20.4 22.8 22.7 26 Ecuador................................................................... .4 .7 .8 .9 1.1 1.1 1.3 1.4 1.6 1.6 1.5 27 Venezuela................................................................ 2.3 4.1 3.9 4.6 5.1 5.5 5.5 5.6 6.2 7.2 7.2 28 Indonesia................................................................. 1.6 2.2 2.3 2.2 2.2 2.2 2.1 1.9 1.9 2.0 1.9 29 Middle East countries............................................ 1.6 4.2 5.0 5.5 6.3 6.9 8.3 8.3 8.7 9.5 9.5 30 African countries.................................................... 1.0 1.4 1.3 1.8 1.9 1.9 2.0 1.9 2.0 2.5 2.6 31 Non-oil developing countries.................................... 34.2 43.1 44.0 45.8 47.6 50.0 49.9 48.9 49.5 52.7 53.1 32 1.7 1.9 2.0 2.1 2.4 2.9 3.0 3.0 2.9 3.0 2.9 33 Brazil.................................................................. 8.0 11.1 11.5 11.8 11.8 12.7 13.0 13.3 14.0 14.9 14.6 34 Chile........................................................................ .5 .8 .7 .7 .8 .9 1.1 1.3 1.3 1.6 1.7 35 Colombia................................................................ 1.2 1.3 1.2 1.2 1.2 1.3 1.3 1.3 1.3 1.4 1.5 36 Mexico.................................................................... 9.0 11.7 11.8 12.2 12.6 11.9 11.2 11.0 10.7 10.8 10.9 37 Peru......................................................................... 1.4 1.8 1.9 2.0 1.9 1.9 1.7 1.8 1.8 1.7 1.6 38 Other Latin America.............................................. 2.6 2.7 2.4 2.4 2.5 2.7 3.5 3.3 3.4 3.8 3.5 39 India........................................................................ .2 .2 .2 .2 .3 .3 .3 .2 .3 .2 .2 40 Israel....................................................................... .9 1.0 .8 .8 .7 .9 .8 .7 .7 1.0 1.0 41 2.4 3.1 3.2 3.4 3.6 3.9 3.7 3.6 3.5 3.9 4.2 42 Malaysia4................................................................ .3 .5 .6 .7 .7 .7 .6 .6 .6 .6 .6 43 Philippines.............................................................. 1.7 2.2 2.3 2.3 2.4 2.5 2.6 2.7 2.8 2.8 3.2 44 Taiwan..................................................................... 1.7 2.3 2.4 2.7 2.9 3.1 3.1 2.5 2.4 2.9 3.1 45 Thailand.................................................................. .7 .7 .8 .8 .9 1.7 1.1 1.1 1.1 1.2 1.2 46 Other Asia.............................................................. .6 .4 .2 .4 .4 .3 .4 .3 .3 .3 .3 47 Egypt....................................................................... .4 .4 .4 .4 .4 .3 .3 .3 .4 .4 .4 48 Morocco................................................................. .1 .2 .3 .3 .4 .5 .4 .5 .5 .6 .6 49 Zaire........................................................................ .3 .2 .3 .3 .3 .3 .3 .2 .2 .2 .2 50 Other Africa5......................................................... .5 .6 1.0 1.0 1.2 1.2 1.4 1.2 1.3 1.4 1.4 51 Eastern Europe.......................................................... 3.7 5.2 5.1 5.5 5.5 6.5 6.3 6.4 6.6 6.9 6.7 52 U.S.S.R................................................................... 1.0 1.5 1.5 1.5 1.5 1.6 1.4 1.4 1.4 1.3 1.1 53 Yugoslavia.............................................................. .6 .8 .9 .9 1.0 1.1 1.2 1.3 1.3 1.5 1.6 54 Other....................................................................... 2.1 2.8 2.8 3.1 3.0 3.8 3.7 3.7 3.9 4.1 4.0 55 Offshore banking centers........................................... 19.4 26.2 22.7 25.4 25.3 26.1 29.0 31.4 29.6 30.6 35.4 56 Bahamas.................................................................. 7.3 11.8 8.2 9.5 9.9 9.8 11.3 11.8 11.3 10.4 14.1 57 Bermuda................................................................. .5 .5 .5 .5 .5 .6 .6 .7 .7 .7 .6 58 Cayman Islands and other British West Indies.. . 2.5 3.8 3.7 4.8 4.3 3.8 4.5 6.3 6.2 6.9 7.2 59 Netherlands Antilles.............................................. .6 .6 .6 .5 .6 .7 .7 .6 .6 .8 .7 60 Panama................................................................... 2.6 2.7 2.9 2.9 2.8 3.1 3.2 3.2 3.0 2.6 3.2 61 Lebanon.................................................................. .2 .1 .2 .2 . 1 .2 .2 .1 .1 .1 .1 62 Hong Kong............................................................. 1.6 2.3 2.6 2.8 3.1 3.7 4.0 4.1 4.0 4.3 4.6 63 Singapore................................................................ 3.8 4.4 3.9 4.2 3.9 3.7 4.0 3.8 2.9 3.9 4.0 64 Others6.................................................................... . 1 . 1 . 5 .5 .8 .8 .9 .9 65 Miscellaneous and unallocated7............................... 4.1 5.4 5.6 5.1 5.0 5.3 5.7 8.1 8.6 9.1 9.6 1. The banking offices covered by these data are the U.S. offices and in this table include only banks’ own claims payable in dollars. For foreign branches of U.S.-owned banks and of U.S. subsidiaries of foreign- earlier dates the claims of the U.S. offices also include customer claims owned banks. Offices not covered include (1) U.S. agencies and branches and foreign currency claims (amounting in June 1978 to $10 billion). of foreign banks, and (2) foreign subsidiaries of U.S. banks. To minimize 3. Includes Algeria, Bahrain, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, duplication, the data are adjusted to exclude the claims on foreign branches Oman, Qatar, Saudi Arabia, and United Arab Emirates in addition to held by a U.S. office or another foreign branch of the same banking countries shown individually. institution. The data in this table combine foreign branch claims in table 4. Foreign branch claims only through December 1976. 3.13 (the sum of lines 7 through 10) with the claims of U.S. offices in table 5. Excludes Liberia. 3.17 (excluding those held by agencies and branches of foreign banks 6. Foreign branch claims only. and those constituting claims on own foreign branches). However, see 7. Includes New Zealand, Liberia, and international and regional also footnote 2. organizations. 2. For June 1978 and subsequent dates, the claims of the U.S. offices Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics □ July 1979 3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1979 1978 1979 Country or area 1977 1978 M Ja a n y .- p Nov. Dec. Jan. Feb. Mar. Apr.? MayP End of period4 Holdings 1 Estimated total1........................................ 38,640 44,933 43,852 44,933 46,205 45,662 47,524 48,126 47,209 2 Foreign countries1..................................... 33,894 39,812 38,474 39,812 41,336 40,958 42,926 43,172 43,046 3 Europe1.................................................... 13,936 17,072 15,654 17,072 18,360 18,501 20,171 20,593 20,639 4 Belgium-Luxembourg........................... 19 19 19 19 19 19 19 19 20 5 Germany1.............................................. 3,168 8,705 7,102 8,705 8,864 8,860 10,216 10,812 10,828 6 Netherlands.......................................... 911 1,358 1,351 1,358 1,433 1,517 1,587 1,637 1,672 7 Sweden.................................................. 100 285 266 285 320 355 360 415 479 8 Switzerland............................................ 497 977 915 977 1,818 1,508 1,537 1,510 1,458 9 United Kingdom.................................. 8,888 5,373 5,674 5,373 5,489 5,823 5,991 5,735 5,697 10 Other Western Europe......................... 349 354 327 354 417 420 461 464 485 11 Eastern Europe..................................... 4 12 Canada...................................................... 288 152 151 152 150 146 166 226 216 13 Latin America and Caribbean................ 551 416 416 416 433 417 418 397 411 14 Venezuela.............................................. 199 144 144 144 183 183 183 183 183 15 Other Latin American and Caribbean. 183 110 109 110 88 72 72 52 66 16 Netherlands Antilles............................ 170 162 162 162 162 162 162 162 162 17 Asia........................................................... 18,745 21,483 21,565 21,483 21,704 21,205 21,483 21,268 21,092 18 Japan..................................................... 6,860 11,528 11,483 11,528 12,226 12,422 12,729 12,982 13,014 19 Africa....................................................... 362 691 691 691 691 691 691 691 691 20 All other................................................... 11 -3 -3 -3 -3 -3 -3 -3 -3 21 Nonmonetary international and regional organizations..................................... 4,746 5,121 5,378 5,121 4,869 4,704 4,598 4,954 4,163 22 International......................................... 4,646 5,089 5,345 5,089 4,837 4,666 4,560 4,915 4,114 23 Latin American regional..................... 100 33 33 33 33 38 38 38 48 Net purchases, or sales (—), during period Transactions 24 Total i........................................................ 22,843 6,292 2,276 225 1,081 1,272 -543 1,862 602 -917 25 Foreign countries1................................... 21,130 5,916 3,234 -3 1,338 1,524 -378 1,968 246 -126 26 Official institutions............................... 20,377 3,712 250 69 -346 150 -517 524 242 -149 27 Other foreign1....................................... 753 2,205 2,986 -72 1,683 1,375 141 1,443 4 23 28 Nonmonetary international and regional organizations.................................... 1,713 375 -958 227 -256 -252 -165 -106 356 -791 Memo: Oil-exporting countries 29 Middle East 2....................................... 4,451 -1,785 -1,827 -241 -127 -461 -693 -31 -452 -190 30 Africa 3.................................................. -181 329 -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. 3.22 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1978 1979 Assets 1976 1977 1978 Dec. Jan. Feb. Mar. Apr. May June*7 352 424 367 367 338 343 303 388 407 326 Assets held in custody 66,532 91,962 117,126 117,126 116,961 114,005 107,854 99,674 91,327 95,301 16,414 15,988 15,463 15,463 15,448 15,432 15,426 15,406 15,381 15,356 1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable Note. Excludes deposits and U.S. Treasury securities held for inter­ U.S. Treasury securities payable in dollars and in foreign currencies. national and regional organizations. Earmarked gold is gold held for 2. The value of earmarked gold increased because of the changes in foreign and international accounts and is not included in the gold stock par value of the U.S. dollar in May 1972 and in October 1973. of the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Investment transactions A65 3.23 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1979 1978 1979 Transactions, and area or country 1977 1978 Jan- MayP Nov. Dec. Jan. Feb. Mar. Apr.*> May27 U.S. Corporate Securities Stocks 1 Foreign purchases.................................................. 14,155 20,130 7,866 1,461 1,438 1,361 1,384 1,941 1,614 1,565 2 Foreign sales.......................................................... 11,479 17,723 6,906 1,359 1,102 1,301 1,264 1,437 1,520 1,384 3 Net purchases, or sales (—)................................... 2,676 2,408 960 103 336 60 120 504 94 181 4 Foreign countries.................................................... 2,661 2,454 940 102 336 61 104 501 94 180 5 Europe.................................................................... 1,006 1,271 283 -10 264 -7 52 104 -2 136 6 France................................................................. 40 47 122 1 -38 -6 16 33 31 48 7 Germany............................................................ 291 620 -59 8 264 -18 20 -2 -59 -1 8 Netherlands........................................................ 22 -22 -87 6 -9 -35 -15 -19 -10 -7 152 -585 -28 -88 -23 -30 12 -12 -17 18 613 1,218 339 67 74 85 19 109 52 74 11 Canada................................................................... 65 74 125 6 38 7 -6 57 30 37 12 Latin America and Caribbean.............................. 127 151 47 -2 16 34 -25 36 22 -19 13 Middle East1.......................................................... 1,390 781 340 109 4 -16 46 242 48 20 14 Other Asia........................... ............................... 59 187 146 1 15 49 30 61 -3 9 15 Africa...................................................................... 5 -13 1 -2 -1 -2 6 1 -3 -2 16 Other countries...................................................... 8 3 -2 1 1 -4 1 1 2 -1 17 Nonmonetary international and regional 15 -46 19 1 * -1 16 3 1 * Bonds2 18 Foreign purchases................................................. 7,739 7,955 3,127 437 884 641 453 581 589 863 19 Foreign sales.......................................................... 3,560 5,509 3,041 439 564 704 547 489 378 922 4,179 2,446 86 -2 320 -63 -94 92 210 -59 4 083 2,037 356 -12 128 54 28 79 106 87 1,8 JO 915 398 -25 146 39 110 1 139 110 23 France................................................................. -3* 30 28 3 17 18 * 13 -2 -1 24 Germany............................................................. -20 68 84 -45 10 42 13 4 19 6 25 Netherlands........................................................ 72 19 -98 -1 -6 -4 -10 -27 -20 -37 26 Switzerland......................................................... 94 -100 -6 9 39 8 6 12 8 -41 1,690 930 352 9 109 -54 93 27 134 151 28 Canada................................................................... 141 102 63 * 6 11 10 33 6 4 29 Latin America and Caribbean............................. 64 78 84 -1 5 23 9 24 9 19 30 Middle East1.......................................................... 1,695 810 -250 -8 -21 -34 -106 25 -61 -73 31 Other Asia.............................................................. 338 131 59 23 -5 16 4 -3 14 28 -6 -1 1 * * * 1 * * * * 1 * • * -3 * * 1 -1 * 34 Nonmonetary international and regional organizations................................................... 96 409 -269 10 192 -118 -122 13 104 146 Foreign Securities 35 Stocks, net purchases, or sales (—)..................... -410 527 65 163 -12 11 -28 2 13 67 36 Foreign purchases.................................................. 2,255 3,666 1,750 360 232 265 232 331 369 554 37 Foreign sales.......................................................... 2,665 3,139 1,686 197 244 254 260 329 356 487 38 Bonds, net purchases, or sales (—)...................... -5,096 -4,017 -927 -446 73 -550 -322 -39 -21 5 8,040 11,044 4,637 856 1,020 783 942 1,182 879 851 40 Foreign sales.......................................................... 13,136 15,061 5,564 1,302 948 1,333 1,264 1,220 900 847 41 Net purchases, or sales (—) of stocks and bonds.. -5,506 -3,490 -862 -283 61 -540 -349 -37 -8 71 42 Foreign countries.................................................... -3,949 -3,313 -623 -303 19 -513 -141 -19 -21 70 -1,100 -40 -368 -102 53 -124 -42 3 -174 -31 44 Canada................................................................... -2,404 -3,237 -622 -246 -24 -305 -184 -228 10 85 45 Latin America and Caribbean............................. -82 201 266 18 * 60 70 54 55 26 -97 350 100 21 -15 -141 19 152 84 -14 47 Africa..................................................................... 2 -441 -11 1 * -3 -5 -8 2 4 48 Other countries...................................................... -267 -146 13 4 5 1 2 7 2 1 49 Nonmonetary international and regional organizations.................................................. -1,557 -177 -239 20 41 -27 -209 -17 13 1 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 □ July 1979 3.24 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States A Millions of dollars, end of period 1978 1979 Type, and area or country 1976 1977 June Sept. Dec. Mar. June Sept. Dec. 1 Total ............................................................... 10,099 11,085 11,870 12,786 13,740 9,390 10,284 11,044 11,955 11,028 709 801 825 831 2,711 By type 5,231 3,448 1,783 8,509 3,945 4,564 7,581 928 By area or country Financial liabilities 3,326 290 134 310 356 288 1,776 19 Canada. .. .................................................. 167 20 Latin America and Caribbean......................... 962 21 Bahamas ... ........................................ 367 22 Bermuda .................................................... 111 23 Brazil... ...................................................... 10 24 British West Indies........................................ 122 25 Mexico. .................................................. 71 26 Venezuela...................................................... 46 27 Asia.... .................................................. 763 28 Japan. .................................................. 677 29 Middle East oil-exporting countries2......... 52 30 Africa ...................................... 8 31 Oil exporting countries3............................... 4 32 All other4 ............................... 5 Commercial liabilities 33 Europe .............................................. 2,941 34 Belgium-Luxembourg................................... 77 35 France. . . ...................................... 336 36 Germany........................................................ 433 37 Netherlands.................................................... 208 38 Switzerland.................................................... 311 39 United Kingdom ......................................... 847 40 Canada............................................................... 666 41 Latin America................................................... 1,005 42 Bahamas........................................................ 25 43 Bermuda........................................................ 95 44 Brazil.............................................................. 75 45 British West Indies...................................... 53 46 Mexico ...................................... 113 47 Venezuela . .. ...................................... 309 48 Asia ......................... 2,958 49 Japan. .............................................. 444 50 Middle East oil-exporting countries2......... 1,546 51 Africa . ...................................... 730 52 Oil-exporting countries3............................... 318 53 All other4.......................................................... 209 1. Prior to December 1978, foreign currency data include only liabilities 3. Comprises Algeria, Gabon, Libya, and Nigeria. denominated in foreign currencies with an original maturity of less than 4. Includes nonmonetary international and regional organizations. one year. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, A For a description of the changes in the International Statistics and United Arab Emirates (Trucial States). tables, see “Announcements” section, p. 550. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-reported Data A67 3.25 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States ▲ Millions of dollars, end of period 1978 1979 Type, and area or country 1976 1977 June Sept. Dec. Mar. June Sept. Dec. 1 Total....................................................................... 19,350 21,298 23,229 23,260 26,817 2 Payable in dollars................................................. 18,300 19,880 21,665 21,292 23,719 3 Payable in foreign currencies1............................. 1,050 1,418 1,564 1,968 3.098 By type 15,474 10,539 9,505 7 Payable in foreign currencies....................... 1,034 4,935 3,280 1,655 11,342 10,614 728 10,934 15 Payable in foreign currencies........................... 408 By area or country Financial claims 4,849 69 192 514 20 Netherlands................................................... 70 21 Switzerland.................................................... 95 22 United Kingdom........................................... 3,683 23 Canada............................................................... 4,369 24 Latin America and Caribbean......................... 5,084 25 Bahamas........................................................ 2,826 26 Bermuda........................................................ 85 27 Brazil.............................................................. 151 28 British West Indies........................................ 1,208 29 Mexico........................................................... 154 30 Venezuela...................................................... 133 31 Asia.................................................................... 916 32 Japan.............................................................. 302 33 Middle East oil-exporting countries2.......... 19 34 Africa................................................................. 216 35 Oil-exporting countries3............................... 40 36 All other4.......................................................... 41 Commercial claims 37 Europe................................................................ 3,910 38 Belgium-Luxembourg................................... 148 39 France.................................................... 609 40 Germany........................................................ 382 41 Netherlands.................................................... 255 42 Switzerland.................................................... 193 43 United Kingdom........................................... 804 44 Canada............................................................... 1.099 45 Latin America and Caribbean......................... 2,611 46 Bahamas........................................................ 109 47 Bermuda.......... ..................................... 215 48 Brazil............................................................. 622 49 British West Indies........................................ 9 50 Mexico........................................................... 502 51 Venezuela...................................................... 295 52 Asia.................................................................... 3,083 53 Japan............................................................. 977 54 Middle East oil-exporting countries2......... 703 55 Africa................................................................. 453 56 Oil-exporting countries3............................... 137 57 All other4.......................................................... 186 1. Prior to December 1978, foreign currency data include only liabilities 3. Comprises Algeria, Gabon, Libya, and Nigeria, denominated in foreign currencies with an original maturity of less than 4. Includes nonmonetary international and regional organizations, one year. 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, A For a description of the changes in the International Statistics and United Arab Emirates (Trucial States). tables, see “Announcements” section, p. 550. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics □ July 1979 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on June 30, 1979 Rate on June 30, 1979 Rate on June 30, 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........................... 9.0 June 1979 10.5 Sept. 1978 1.0 Feb. 1978 Brazil............................... 33.0 Nov. 1978 4.25 Apr. 1979 United Kingdom.......... 14.0 June 1979 Canada............................ 11.25 Jan. 1979 4.5 June 1942 5.0 Oct. 1970 Denmark......................... 9.0 June 1979 Netherlands.................. 7.0 May 1979 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 j 1979 Country, or type 1976 1977 1978 Jan. I Feb. Mar. Apr. May June 1 5.58 6.03 8.74 11.16 10.79 10.64 10.60 10.75 10.52 11.35 8.07 9.18 12.61 13.28 11.98 11.64 11.76 13.02 3 Canada.................................................................. 9.39 7.47 8.52 10.87 10.94 11.08 11.18 11.26 11.17 4 Germany............................................................... 4.19 4.30 3.67 3.85 4. 13 4.42 5.50 5.89 6.40 1.45 2.56 0.74 0.05 0. 13 0.03 0.93 1.54 1.51 6 Netherlands........................................................... 7.02 4.73 6.53 8.69 7.42 7.35 7.23 7.82 8.55 7 France.................................................................... 8.65 9.20 8.10 6.55 6.83 7.05 6.96 7.63 8.63 8 Italy....................................................................... 16.32 14.26 11.40 11.12 11.38 11.46 11.52 11.37 11 .27 9 Belgium................................................................. 10.25 6.95 7.14 8.93 8.23 7.63 7.63 8.16 9.09 10 Japan..................................................................... 7.70 6.22 4.75 4.52 4.50 4.54 5.13 ! 5.25 5.46 1 | Note. Rates are for 3-month interbank loans except for the following: francs and over: and Japan, loans and discounts that can be called after Canada, finance company paper; Belgium, time deposits of 20 million being held over a minimum of two month-ends. 3.28 FOREIGN EXCHANGE RATES Cents per unit of foreign currency 1979 Country/currency 1976 1977 1978 l Jan. Feb. Mar. Apr. May June 1 Australia/dollar.................. 122.15 110.82 114.41 114.04 113.12 112.15 110.85 110.57 111.11 2 Austria/schilling................. 5.5744 6.0494 6.8958 7.3821 7.3510 7.3312 7.1862 7.1222 7.2081 3 Belgium/franc..................... 2.5921 2.7911 3.1809 3.4276 3.4153 3.3971 3.3271 3.2732 3.3048 4 Canada/dollar..................... 101.41 94.112 87.729 84.041 83.638 85.187 87.235 86.534 85.296 5 Denmark/krone.................. 16.546 16.658 18.156 19.487 19.423 19.269 18.958 18.562 18.401 6 Finland/markka................. 25.938 24.913 24.337 25.252 25.186 25.161 24.976 24.974 25.250 7 France/franc....................... 20.942 20.344 22.218 23.570 23.395 23.328 22.967 22.691 22.914 8 Germany/deutsche mark... 39.737 43.079 49.867 54.056 53.862 53.754 52.745 52.422 53.084 9 India/rupee......................... 11.148 11.406 12.207 12.185 12.124 12.138 12.191 12.066 12.317 10 Ireland/pound..................... 180.48 174.49 191.84 200.53 200.42 203.73 201.97 198.43 200.01 11 Italy/lira.............................. .12044 .11328 .11782 .11955 .11899 .11888 .11858 .11744 .11828 12 Japan/yen........................... .33741 .37342 .47981 .50571 .49877 .48470 .46241 .45797 .45750 13 Malaysia/ringgit................. 39.340 40.620 43.210 45.487 45.488 45.440 45.023 44.934 45.474 14 Mexico/peso....................... 6.9161 4.4239 4.3896 4.4038 4.3952 4.3835 4.3780 4.3805 4.3767 15 Netherlands/guilder........... 37.846 40.752 46.284 50.082 49.856 49.801 48.794 48.132 48.374 16 New Zealand/dollar........... 99.115 96.893 103.64 105.64 105.32 105.39 104.96 104.37 103.29 17 Norway/krone.................... 18.327 18.789 19.079 19.730 19.610 19.619 19.444 19.270 19.398 18 Portugal/escudo................. 3.3159 2.6234 2.2782 2.1358 2.1065 2.0855 2.0482 2.0214 2.0192 19 South Africa/rand.............. 114.85 114.99 115.01 114.96 116.76 118.40 117.94 118.22 118.31 20 Spain/peseta....................... 1.4958 1.3287 1.3073 1.4293 1.4427 1.4490 1.4679 1.5131 1.5131 21 Sri Lanka/rupee................. 11.908 11.964 6.3834 6.4491 6.4439 6.4593 6.4455 6.4239 6.4059 22 Sweden/krona..................... 22.957 22.383 22.139 22.987 22.898 22.901 22.772 22.755 23.028 23 Switzerland/franc............... 40.013 41.714 56.283 59.840 59.699 59.473 58.220 57.894 58.884 24 United Kingdom/pound... 180.48 174.49 191.84 200.53 200.42 203.78 207.34 205.87 211.19 Memo: 25 United States/dollar1......... 105.57 103.31 92.39 87.77 88.25 88.39 89.49 90.31 89.56 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 Guide 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................... June 1979 A-76 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 Federal Reserve Board of Governors G. William Miller, Chairman Philip E. Coldwell Henry C. Wallich J. Charles Partee Office of Board Members Office of Staff Director for M onetary 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 James L. Kichline, Director Robert E. Mannion, Associate General Joseph S. Zeisel, Deputy Director Counsel John H. Kalchbrenner, Associate Director Allen L. Raiken, Associate General Counsel John J. Mingo, Senior Research Division Officer Charles R. McNeill, Assistant to the General Counsel Eleanor J. Stockwell, Senior Research Division Officer J. Virgil Mattingly, Assistant General James M. Brundy, Associate Research Division Counsel Officer Gilbert T. Schwartz, Assistant General Robert A. Eisenbeis, Associate Research Counsel Division Officer Jared J. Enzler, Associate Research Division Officer Office of the Secretary J. Cortland G. Peret, Associate Research Division Officer Theodore E. Allison, Secretary Michael J. Prell, Associate Research Division Griffith L. Garwood, Deputy Secretary Officer *Edward T. Mulrenin, Assistant Secretary Helmut F. Wendel, Associate Research Richard H. Puckett, Manager, Regulatory Division Officer Improvement Project Robert M. Fisher, Assistant Research Division Officer Division of Consumer Affairs Frederick M. Struble, Assistant Research Division Officer Janet O. Hart, Director St D ep iv h i e si n o n P . O T ff a ic y e l r or, Assistant Research J N e a r t a h u a l n d i e C l . E K . l B uc u k tl m e a r n , , A A s s s s o o c c ia ia te te D D i i r r e e c c to to r r Levon H. Garabedian, Assistant Director Anne Geary, Assistant Director Division of International Finance Division of Banking Edwin M. Truman, Director Supervision and Regulation Robert F. Gemmill, Associate Director George B. Henry, Associate Director John E. Ryan, Director Charles J. Siegman, Associate Director tFREDERiCK C. Schadrack, Deputy Director Samuel Pizer, Senior International Division Frederick R. Dahl, Associate Director Officer William Taylor, Associate Director Jeffrey R. Shafer, Associate International W illiam W. W iles, Associate Director Division Officer Jack M. Egertson, Assistant Director Dale W. Henderson, Assistant International Robert A. Jacobsen, Assistant Director Division Officer DoN E. Kline, Assistant Director Larry J. Promisel, Assistant International Robert S. Plotkin, Assistant Director Division Officer Thomas A. Sidman, Assistant Director Ralph W. Smith, Jr., Assistant International Samuel H. Talley, Assistant Director Division Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71 and Official Staff Nancy H. Teeters Emmett J. Rice 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 t 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 David L. Shannon, Director Walter Althausen, Assistant Director John R. Weis, Assistant Director Brian M. Carey, Assistant Director Charles W. Wood, Assistant Director Harry A. Guinter, Assistant Director Lorin S. Meeder, Assistant Director Office of the C on troller 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 *On loan from Office of the Controller. tOn loan from the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Bulletin □ July 1979 FOMC and Advisory Councils Federal Open Market Committee G. William M iller, Chairman Paul A. Volcker, Vice Chairman John Balles Monroe Kimbrel Emmett J. Rice Robert Black Robert Mayo Nancy H. Teeters Philip E. Coldwell J. Charles Partee 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 J. W. McLean, tenth district, President Henry S. Woodbridge, Jr., 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 M erle E. Gilliand, fourth district James D. Berry, eleventh district J. Owen Cole, fifth district Chauncey E. Schmidt, twelfth district Herbert V. Prochnow, Secretary W illiam 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, Atlanta, Georgia 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 B. Schechter, Washington, D. C. Jean A. Fox, Pittsburgh, Pennsylvania E. G. Schuhart II, 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. W alker, 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, III 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. J. Tankersley Robert D. Duggan RICHMOND*...............23261 Vacant 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. Robert P. Forrestal Birmingham...............35202 William H. Martin, III Hiram J. Honea Jacksonville...............32203 Copeland D. Newbern Charles D. East Miami.........................33152 Castle W. Jordan F. J. Craven, Jr. Nashville....................37203 Cecelia Adkins 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, Jr. 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 Sup­ quest and be made payable to the order of the Board port Services, Board of Governors of the Federal Re­ of Governors of the Federal Reserve System. Remit­ serve System, Washington, D.C. 20551. Where a tance from foreign residents should be drawn on a U.S. charge is indicated, remittance should accompany re- 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 year or $2.00 each in the United States, its posses­ each. sions, Canada, and Mexico; 10 or more of same Report of the Joint Treasury-Federal Reserve issue to one address, $18.00 per year or $1.75 Study of the U.S. Government Securities each. Elsewhere, $24.00 per year or $2.50 each. Market. 1969. 48 pp. $.25 each; 10 or more to one address, $.20 each. Banking and Monetary Statistics, 1914-1941. (Reprint of Part 1 only) 1976. 682 pp. $5.00. Joint Treasury-Federal Reserve Study of the 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 and Part 3. 1973. 131 pp. Each volume $1.00; 1971-75. 1976. 339 pp. $4.00 per copy for each 10 or more to one address, $.85 each. paid subscription to Federal Reserve Bulletin; Open Market Policies and Operating Proce­ all others $5.00 each. dures— Staff Studies. 1971. 218 pp. $2.00 1972-76. 1977. 338 pp. $10.00 per copy. each; 10 or more to one address, $1.75 each. 1973-77. 1978. 361 pp. $12.00 per copy. Reappraisal of the Federal Reserve Discount 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 Federal Reserve Chart Book in­ Federal Reserve Staff Study: Ways to Moderate cludes one issue. $1.25 each in the United States, Fluctuations in Housing Construction . its possessions, Canada, and Mexico; 10 or more 1972. 487 pp. $4.00 each; 10 or more to one to one address, $ 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 Elsewhere, $20.00 per year or $.50 each. the Advisory Committee on Monetary Sta­ Selected Interest and Exchange Rates—Weekly tistics. 1976. 43 pp. $1.00 each; 10 or more to Series of Charts. Weekly. $15.00 per year or one 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 cember 1976, with an appendix containing provi­ Federal Reserve Measures of Capacity and Ca­ sions of certain other statutes affecting the Federal pacity Utilization. 1978. 40 pp. $1.75 each, 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 Innovations in Bank Loan Contracting: Recent (Short pamphlets suitable for classroom use. Multiple Evidence, by Paul W. Boltz and Tim S. Camp­ copies available without charge.) bell. May 1979. 40 pp. Printed in Full in the Bulletin Consumer Handbook To Credit Protection Laws. The Equal Credit Opportunity Act and . . . Age. (Included under “Reprints. ”) The Equal Credit Opportunity Act and . . . Credit Rights in Housing. Reprints The Equal Credit Opportunity Act and . . . Doctors, Lawyers, Small Retailers, and (Except for Staff Papers, Staff Studies, and some Others Who May Provide Incidental Credit. leading articles, most of the articles reprinted do not The Equal Credit Opportunity Act and . . . exceed 12 pages.) Women. Fair Credit Billing. Measures of Security Credit. 12/70. A Guide to Federal Reserve Regulations. Revision of Bank Credit Series. 12/71. How to File A Consumer Credit Complaint. Assets and Liabilities of Foreign Branches of If You Borrow To Buy Stock. U.S. Banks. 2/72. If You Use A Credit Card. Bank Debits, Deposits, and Deposit Turnover— Truth in Leasing. Revised Series. 7/72. U.S. Currency. Yields on Newly Issued Corporate Bonds. 9/72. What Truth in Lending Means to You. Recent Activities of Foreign Branches of U.S. Banks. 10/72. Revision of Consumer Credit Statistics. 10/72. S taff Studies One-Bank Holding Companies Before the 1970 (Studies and papers on economic and financial sub­ Amendments. 12/72'. jects that are of general interest.) Yields on Recently Offered Corporate Bonds. 5/73. Summaries Only Printed in the Bulletin Rates on Consumer Instalment Loans. 9/73. New Series for Large Manufacturing Corpora­ (Limited supply of mimeographed copies of full text tions. 10/73. available upon request for single copies.) U.S. Energy Supplies and Uses, Staff Economic Study by Clayton Gehman. 12/73. The Behavior of Member Bank Required Reserve The Structure of Margin Credit. 4/75. Ratios and the Effects of Board Action, New Statistical Series on Loan Commitments* at 1968-77, by Thomas D. Simpson. July 1978. 39 Selected Large Commercial Banks. 4/75. pp. An Assessment of Bank Holding Companies, Staff Foothold Acquisitions and Bank Market Struc­ Economic Study by Robert J. Lawrence and Sam­ ture, by Stephen A. Rhoades and Paul Schweit­ uel H. Talley. 1/76. zer, July 1978. 8 pp. Industrial Electric Power Use. 1/76. Interest Rate Ceilings and Disintermediation, by Revision of Money Stock Measures. 2/76. Edward F. McKelvey. Sept. 1978. 105 pp. Survey of Finance Companies, 1975. 3/76. The Relationship Between Reserve Ratios and Revised Series for Member Bank Deposits and the Monetary Aggregates Under Reserves Aggregate Reserves. 4/76. and Federal Funds Rate Operating Targets, Industrial Production— 1976 Revision. 6/76. by Kenneth J. Kopecky. Dec. 1978. 58 pp. Federal Reserve Operations in Payment Mecha­ Tie-ins Between the Granting of Credit and nisms: A Summary. 6/76. Sales of Insurance by Bank Holding Compa­ New Estimates of Capacity Utilization: Manu­ nies and Other Lenders, by Robert A. Eisenbeis facturing and Materials. 11/76. and Paul R. Schweitzer. Feb. 1979. 75 pp. Bank Holding Company Financial Developments Geographic Expansion of Banks and Changes in in 1976. 4/77. Banking Structure, by Stephen A. Rhoades. Survey of Terms of Bank Lending— New Series. Mar. 1979. 40 pp. 5/77. Impact of the Dollar Depreciation on the U.S. The Commercial Paper Market. 6/77. Price Level: An Analytical Survey of Em­ The Federal Budget in the 1970’s. 9/78. pirical Estimates, by Peter Hooper and Barbara Summary Measures of the Dollar’s Foreign Ex­ R. Lowrey. Apr. 1979. 53 pp. change Value. 10/78. Survey of Time and Savings Deposits at Commer­ cial Banks, January 1979. 5/79. Redefining the Monetary Aggregates. 1/79. U.S. International Transactions in 1978. 4/79. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 76 Index to Statistical Tables References are to pages A-3 through A-68 although the prefix “A” is omitted in this index ACCEPTANCES, bankers, 11, 25, 27 Demand deposits Agricultural loans, commercial banks, 18, 20-22, 26 Adjusted, commercial banks, 13, 15, 19 Assets and liabilities (See also Foreigners) Banks, by classes, 16, 17, 19, 20-23 Banks, by classes, 16, 17, 18, 20-23, 29 Ownership by individucils, 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) Consumer installment 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 Eurodollars, 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 Federal funds, 3, 6, 18, 20, 21, 22, 27, 30 CAPACITY utilization, 46 Federal Home Loan Banks, 35 Capital accounts Federal Home Loan Mortgage Corporation, 35, 40, 41 Banks, by classes, 16, 17, 19, 20 Federal Housing Administration, 35, 40, 41 Federal Reserve Banks, 12 Federal Intermediate Credit Banks, 35 Central banks, 68 Federal Land Banks, 35, 41 Certificates of deposit, 23, 27 Federal National Mortgage Association, 35, 40, 41 Commercial and industrial loans Federal Reserve Banks Commercial banks, 15, 18, 26 Condition statement, 12 Weekly reporting banks, 20, 21, 22, 23, 24 Discount rates (See Interest rates) Commercial banks U.S. government securities held, 4, 12, 13, 32, 33 Assets and liabilities, 3, 15-19, 20-23 Federal Reserve credit, 4, 5, 12, 13 Business loans, 26 Federal Reserve notes, 12 Commercial and industrial loans, 24, 26 Federally sponsored credit agencies, 35 Consumer loans held, by type, 42, 43 Finance companies Loans sold outright, 23 Assets and liabilities, 39 Number, by classes, 16, 17, 19 Business credit, 39 Real estate mortgages held, by type of holder and Loans, 20, 21, 22, 42, 43 property, 41 Paper, 25, 27 Commercial paper, 3, 25, 27, 39 Financial institutions, loans to, 18, 20-22 Condition statements (See Assets and liabilities) Float, 4 Construction, 46, 50 Flow of funds, 44, 45 Consumer installment credit, 42, 43 Foreign Consumer prices, 46, 51 Currency operations, 12 Consumption expenditures, 52, 53 Deposits in U.S. banks, 4, 12, 19, 20, 21, 22 Corporations Exchange rates, 68 Profits, taxes, and dividends, 37 Trade, 55 Security issues, 36, 65 Foreigners Cost of living (See Consumer prices) Claims on, 56, 58, 61, 62, 63, 67 Credit unions, 29, 42, 43 Liabilities to, 23, 56-60, 64-66 Currency and coin, 5, 16, 18 Currency in circulation, 4, 14 GOLD Customer credit, stock market, 28 Certificates, 12 Stock, 4, 55 DEBITS to deposit accounts, 13 Government National Mortgage Association, 35, 40, 41 Debt (See specific types of debt or securities) Gross national product, 52, 53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 77 HOUSING, new and existing units, 50 REAL estate loans Banks, by classes, 18, 20-22, 29, 41 INCOME, personal and national, 46, 52, 53 Life insurance companies, 29 Industrial production, 46, 48 Mortgage terms, yields, and activity, 3, 40 Installment 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 loans and deposits, 16, 17 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) 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 associations, 29 State and local governments 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) 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 MANUFACTURING Capacity utilization, 46 TAX receipts, federal, 31 Production, 46, 49 Time deposits, 3, 10, 13, 15, 16, 17, 19, 20, 21, 22, 23 Margin requirements, 28 Member banks Trade, foreign, 55 Assets and liabilities, by classes, 16, 17, 18 Treasury currency, Treasury cash, 4 Borrowings at Federal Reserve Banks, 5, 12 Treasury deposits, 4, 12, 30 Number, by classes, 16, 17, 19 Treasury operating balance, 30 Reserve position, basic, 6 Reserve requirements, 9 UNEMPLOYMENT, 47 Reserves and related items, 3, 4, 5, 15 U.S. balance of payments, 54 Mining production, 49 U.S. government balances Mobile home shipments, 50 Commercial bank holdings, 19, 20, 21, 22 Monetary aggregates, 3, 15 Member bank holdings, 15 Money and capital market rates (See Interest rates) Treasury deposits at Reserve Banks, 4, 12, 30 Money stock measures and components, 3, 14 U.S. government securities Mortgages (See Real estate loans) Bank holdings, 16, 17, 18, 20, 21, 22, 29, Mutual funds (See Investment companies) 32, 33 Mutual savings banks, 3, 10, 20-22, 29, 32, 33, 41 Dealer transactions, positions, and financing, 34 Federal Reserve Bank holdings, 4, 12, 13, 32, 33 NATIONAL banks, 17 Foreign and international holdings and National defense outlays, 31 transactions, 12, 32, 64 National income, 52 Open market transactions, 1 1 Nonmember banks, 17, 18, 19 Outstanding, by type and ownership, 32, 33 Rates, 3, 27 OPEN market transactions, 1 1 Utilities, production, 49 PERSONAL income, 53 VETERANS Administration, 40, 41 Prices Consumer and producer, 46, 51 WEEKLY reporting banks, 20-24 Stock market, 28 Wholesale prices, 46, 51 Prime rate, commercial banks, 26 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 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 © Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis