Federal Reserve Bulletin, 1979-10

OCTOBER 1979 FEDERAL RESERVE BULLETIN Implementation of the International Banking Act Changes in Bank Lending Practices, 1977-79 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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VOLUME 65 • NUMBER 10 • OCTOBER 1979 FEDERAL RESERVE BULLETIN Board of Governors of the Federal Reserve System Washington, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • Stephen H. Axilrod • John M. Denkler Janet O. Hart • James L. Kichline • Neal L. Petersen • Edwin M. Truman Michael J. Prell, Staff Director The FEDERAL RESERVE BULLETIN is issued monthly under the direction of the start 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 785 IMPLEMENTATION OF THE INTERNATIONAL 822 Chairman Paul A. Volcker testifies on BANKING ACT legislation that would assure the capacity of the Federal Reserve to conduct effective Description of the institutional structure monetary policy; he recommends that the and activities of U.S. offices of foreign legislation contain such features as reserve banks and of the regulations that have been requirements on transaction balances at all proposed by the federal bank regulatory depositary institutions, a standby authority agencies to implement the act. for supplementary deposits at Federal Reserve Banks, an initial reserve ratio of zero 797 CHANGES IN BANK LENDING PRACTICES, on nonpersonal time deposits, and full 7977-79 pricing and open access to Federal Reserve Based on quarterly surveys, banks gener- services, before the Senate Committee on ally have tightened their terms of credit Banking, Housing and Urban Affairs, thus far in 1979, continuing a trend that September 26, 1979. began in early 1978. 830 ANNOUNCEMENTS 817 INDUSTRIAL PRODUCTION Actions regarding monetary policy. Output increased an estimated 0.5 percent in September. Increase in the discount rate. Adoption of Regulation S. (See Law 818 STATEMENTS TO CONGRESS Department.) Governor Emmett J. Rice reviews the Rescission of amendment to Regulation Z. supervision of bank advertising practices by the federal financial regulatory agencies Additional provisions of Regulation E. before the Subcommittee on Commerce, Meeting of Consumer Advisory Council. Consumer, and Monetary Affairs of the House Committee on Government Opera- Assets and liabilities of foreign branches tions, September 12, 1979. of member banks, year-end 1978. 821 William H. Wallace, Staff Director for Revision of list of over-the-counter margin Federal Reserve Bank Activities, dis- stocks. cusses the cost benefits of the Susan B. Changes in Board staff. Anthony $1 coin and offers the Board's view that the significant potential savings Supplement to Federal Reserve Compliin costs associated with substitution of a ance Handbook. durable coin for paper money should not Changes in statistical releases on combe ignored, before the Subcommittee on mercial bank assets and liabilities. Consumer Affairs of the House Committee on Banking, Finance and Urban Affairs, Creation of committee of senior System September 25, 1979. management. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF THE Chairman Volcker recommended that the FEDERAL OPEN MARKET COMMITTEE upper limit of the range for the funds rate be raised to IIV2 percent, but with the At the meeting on August 14, 1979, the understanding that not all of the additional Committee decided to instruct the Manleeway would be used immediately; use ager for Domestic Operations to direct of the leeway would depend on subsequent open market operations initially toward an behavior of the monetary aggregates and increase in the weekly average federal on developments in foreign exchange funds rate to about 11 percent. Subsemarkets. The Committee voted to amend quently, the objective for the funds rate the domestic policy directive in accordwas to be raised or lowered in an orderly ance with the Chairman's recomfashion within a range of 10% to 11 lA mendation. percent, if M-l and M-2 appeared to be growing over the August-September period at rates close to or beyond the upper 849 LAW DEPARTMENT or lower limits of the ranges specified for Adoption of Regulation S; various rules, those monetary aggregates. The members interpretations, and orders; and pending decided that the two-month ranges of tol- cases. erance for the annual rates of growth in M-l and M-2 should be 4 to 8 percent and 7 to 11 percent respectively. They also agreed that in assessing the behavior of A1 FINANCIAL AND BUSINESS STATISTICS the aggregates, the Manager should give A3 Domestic Financial Statistics approximately equal weight to M-l and A46 Domestic Nonfinancial Statistics M-2. A54 International Statistics Subsequent to the meeting, in late August, incoming data indicated that M-l and A69 GUIDE TO TABULAR PRESENTATION M-2 were growing at rapid rates in Au- AND STATISTICAL RELEASES gust. On August 30, projections for the August-September period suggested that A70 BOARD OF GOVERNORS AND STAFF growth of M-l would be at an annual rate well above the upper limit of the range ALL FEDERAL OPEN MARKET COMMITTEE that had been specified by the Committee AND STAFF; ADVISORY COUNCILS and that growth of M-2 would be at about the upper limit of its range. Over the A73 FEDERAL RESERVE BANKS, BRANCHES, preceding week, the Manager for Domes- AND OFFICES tic Operations had been aiming for a weekly average federal funds rate ap- A74 FEDERAL RESERVE BOARD PUBLICATIONS proaching the 11V4 percent upper limit of its specified range, and in the statement A76 INDEX TO STATISTICAL TABLES week ending August 29, the rate averaged 11.16 percent. In these circumstances, A78 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Implementation of the International Banking Act This article was prepared by Sydney J. Key of ing assets (total assets minus claims on related the Board's Division of International Finance institutions and assets arising in the process of and by James M. Brundy of the Division of clearing payments) amounted to $97 billion in Research and Statistics. May 1979, a figure 4V2 times as large as that for May 1973. In the past two decades a marked increase in By the mid-1970s the size and growth of multinational banking has accompanied the in- foreign bank activities in the United States and creasing interdependence of national economies the competitive impact of these activities on the and the rapid expansion of world trade. Since domestic banking industry focused attention on the early 1960s, U.S. banks have been expand- the absence of both a federal regulatory frameing their foreign operations significantly, and work and any governmental overview of the in the 1970s, ever-increasing numbers of foreign multistate activities of the foreign banks. Unlike banks have opened offices in the United States. virtually all domestic banks, U.S. agencies and For ease of access to the major U.S. financial branches of foreign banks were supervised only markets, most foreign banks initially opened by the licensing state. Moreover, agencies and offices in New York City; offices were then branches were not required to hold reserves with opened in other parts of the country, particularly the Federal Reserve System, a situation that in those places where the bank's home-country tended to complicate monetary management. customers had trade or financial relationships. The Congress considered legislation to rem- In May 1979, 144 foreign banks operated 315 edy these problems for four years before the offices in the United States, up from 111 offices International Banking Act of 1978 (IBA) was six years earlier. (See chart 1.) Standard bank- enacted. The IB A created a federal regulatory 1. U.S. activities of foreign banks, 1973-79 Number of offices1 Ratio scale, billions of dollars 1973 1976 1979 1. As of May of each year. 3. Data do not include domestic banks acquired by foreign 2. New York investment companies and Agreement cor- banks in 1979. porations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

786 Federal Reserve Bulletin • November 1979 structure for agencies and branches as part of INSTITUTIONAL STRUCTURE a general policy of national treatment in order At present, foreign banks operate in the United to promote competitive equality between do- States mainly through three types of banking mestic and foreign banking institutions in the facilities: agencies, branches, and subsidiary United States. The policy of national treatment commercial banks. Both agencies and branches attempts to give foreign enterprises operating in may conduct full-scale lending operations, but a host country the same powers, and to subject agencies may not accept deposits. Agencies and them to the same obligations, as their domestic branches are integral parts of their parent banks counterparts. and until the passage of the IBA were subject To implement this broad principle of parity to virtually no federal regulation. Subsidiary of treatment, six major statutory changes were commercial banks are separately chartered inmade. First, the IB A limited interstate domestic stitutions and are subject to a variety of federal deposit-taking activities of foreign banks. Such laws and regulations. multistate banking activities are not generally Foreign banks also now operate in the United permissible for domestic banks or bank holding States through two less common types of facilicompanies, and the ability to engage in such ties: New York investment companies and activities was viewed as a competitive advan- Agreement corporations. In the future, foreign tage for foreign banks. Second, the option of banks will also be able to operate in the United federal licensing was provided for agencies and States through Edge corporations. As discussed branches. Third, the Federal Reserve Board was below, the IBA removed the bar to foreign bank authorized to impose federal reserve require- ownership of shares of such corporations. ments on agencies and branches for monetary Unlike domestic banks, foreign banks may policy purposes as well as for competitive eq- open agencies and branches in more than one uity. Fourth, federal deposit insurance was re- state with relative ease, and they have taken quired for those branches of foreign banks that advantage of this situation to expand their mulengage in retail deposit-taking. Fifth, Edge cor- tistate banking facilities. Because of their interporations that engage in banking were given national trade and money market orientation, broadened powers to compete more effectively New York, California, and Illinois have atwith agencies and branches, and foreign banks tracted most of the U.S. offices of foreign banks were permitted to own Edge corporations. and now account for 97 percent of the standard Sixth, foreign banks that operate agencies and assets of foreign banks in the United States. branches in the United States were subjected to U.S. offices of foreign banks are also located the nonbanking prohibitions of the Bank Hold- in seven additional states: Massachusetts, ing Company Act. In addition, the IB A required Pennsylvania, Georgia, Florida, Washington, reports to the Congress on the desirability of Oregon, and Hawaii. (One Agreement corporalifting the restrictions on interstate operations tion is located in Texas.) of domestic banks, the treatment of U.S. banks In the years immediately before the enactment abroad, and the advisability of admitting Edge of the IBA, branches were becoming a relatively corporations to membership in the Federal Re- more important part of the U.S. activities of serve System. foreign banks, primarily because of the rapid This article first describes the institutional growth of branches of European banks, the structure and the activities of U.S. offices of relatively slow growth of activities of Canadian foreign banks, with special emphasis on agen- agencies, and a shift by most Japanese banks cies and branches. It then analyzes various operating in New York to the branch form of aspects of the regulations that have been issued organization. One reason for preferring or proposed by the federal bank regulatory branches is their ability to issue domestic certifagencies, to which the IB A delegated the im- icates of deposit, which agencies are prohibited plementation of its overall provisions. from doing. As shown in table 1, agencies Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Implementation of the International Banking Act 787 1. Selected assets and liabilities of U.S. offices tionally oriented nonbank businesses rather than of foreign banks, 1973-79 1 individuals. By contrast, many foreign bank Millions of dollars subsidiaries are "retail" banks whose customers include many individuals and smaller busi- Category and May May May type of institution 1973 1976 1979 nesses. This distinction is reflected in the ratios Total assets of business loans to deposits of nonbanks at the All institutions2 30,461 60,542 132,272 two groups of institutions. Business loans are Agencies 18,043 27,143 40,317 Branches 5,863 19,195 67,092 about two-fifths of the deposits at subsidiaries, Subsidiary commercial banks3 4,974 12,573 22,915 indicating a relatively smaller amount of business lending activity, while business loans of Standard banking assets All institutions2 21,963 42,360 97,188 branches are about equal to deposits. (See table Agencies ...........— 12,019 16,934 24,726 Branches 4,113 13,082 50,682 1.) The fact that almost all agencies and Subsidiary commercial banks3 4,628 11,094 20,169 branches are wholesale banking institutions has an important bearing on questions of competi- Business loans All institutions2 10,980 19,039 36,440 tive equity that arise in implementing the IB A. Agencies 6,860 9,886 12,352 Branches 1,820 5,137 17,525 As of May 1979, standard assets of subsidiary Subsidiary commercial banks3 1,741 3,658 5,929 commercial banks owned by foreign banks amounted to about $20 billion. This figure does Deposits and credit balances of nonbanks not, however, include four acquisitions of U.S. All institutions2 6,491 16,702 33,862 Agencies .............. 661 958 873 banks by foreign banks approved by the Federal Branches 1,912 5,938 17,523 Reserve Board in 1979: Marine Midland Bank Subsidiary commercial banks3 3,371 9,305 15,048 by Hong Kong and Shanghai Banking Corpora- Number of institutions tion (not consummated as of mid-October All institutions2 ill 186 315 1979); National Bank of North America by Agencies 57 86 146 Branches 24 62 122 National Westminster Bank Limited; Union Subsidiary commercial banks3 27 33 39 Bank of California by Standard Chartered Bank; and LaSalle National Bank by Algemene 1. Does not include offices located in territories or possessions of the United States. Bank Nederland. As of mid-1979, the standard 2. Including New York investment companies and Agreebanking assets of the domestic offices of these ment corporations. New York investment companies are chartered under Article XII of the New York State Banking Law; four U.S.-chartered banks amounted to about as is the case with agencies, the investment companies may $17 billion. Thus aggregate standard assets of accept credit balances but may not receive deposits. Agreement corporations are state-chartered corporations that have entered subsidiary commercial banks could soon douinto an agreement with the Federal Reserve Board to limit their banking activities to those permitted to Edge corporations, ble, thereby becoming nearly as large as standas described later. ard assets of branches. 3. For comparability, subsidiary commercial banks acquired by foreign banks in 1979 are not included in the figures for May 1979. (See text.) ACTIVITIES OF accounted for more than half of the standard AGENCIES AND BRANCHES banking assets of U.S. offices of foreign banks The IBA extended federal reserve requirements in May 1973; agencies now account for only and deposit interest rate limitations to agencies one-quarter of these assets. Standard assets of and branches and also placed restrictions on branches have been increasing steadily over the their interstate activities. The IBA provided for past six years and now amount to more than minimal additional federal regulation of state- $50 billion, or about half of the standard assets of chartered banks and New York investment all U.S. offices of foreign banks. companies owned by foreign banks because they Agencies and branches generally are are domestic institutions separately organized "wholesale" banking institutions, that is, their under state law. For agencies and branches, customers are chiefly banks and other interna- implementing the goal of competitive equity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

788 Federal Reserve Bulletin • November 1979 2. Standard banking assets, 1973-79 2. Summary of assets and liabilities of U.S. agencies and branches of foreign banks and weekly reporting U.S. banks, May 19791 ^^^Weekl)^ — Agencies Weekly and branches reporting banks2 CCaatteeggoorryy Amount Share Amount Share (millions (per- (millions (perof dollars) cent) of dollars) cent) Standard banking assets .. 75,408 70 551,829 89 Business loans 29,877 28 138,136 22 U.S. residents 19,900 19 128,8323 21 Foreign residents 9,977 9 5,8883 1 Interbank loans and deposits 4 30,405 28 27,017 4 U.S 18,686 17 21,163 3 Foreign 11,719 11 5,854 1 Other assets 15,126 14 386,676 62 Clearing balances5 8,984 8 70,208 11 Due from related institutions 23,018 21 U.S 6,964 6 1. The panel of weekly reporting banks and their report form Foreign 16,053 15 <«) (") changed effective January 3, 1979. Historical data for 1973-78 Total assets/total for the new reporting panel were constructed by Federal Re- liabilities 107,409 100 622,036 100 serve Board staff. Standard banking requires consideration of their operating charac- liabilities 53,080 49 485,878 78 Deposits and credit teristics compared with those of domestic banks. balances of nonbanks 7 .. 18,396 17 365,800 59 Over the past six years the standard banking U.S. residents 13,229 12 Foreign residents 5,167 5 assets of the agencies and branches have grown Interbank more rapidly than comparable assets of large liabilities4 22,726 21 104,069 17 U.S 21,765 20 98,256 16 domestic banks that report weekly to the Federal Foreign 961 1 5,813 1 Other liabilities 11,958 11 16,010 3 Reserve. (See chart 2.) From May 1973 to May Clearing liabilities 8 ...... 8,523 8 43,144 7 1979, standard assets of agencies and branches Due to related institutions 45,146 42 more than quadrupled, increasing from $16 bil- U.S 8,272 8 Foreign 36,874 34 («) lion to $75 billion, while standard assets of Residual9 661 1 93,013 15 weekly reporting banks increased about threefifths to $552 billion. As a result, standard assets Number of institutions,.. 268 165 of the agencies and branches now equal about 1. Details may not add to totals due to rounding. 14 percent of the standard assets of the weekly 2. Excludes six subsidiary commercial banks owned by foreign banks, but does not exclude the four banks acquired reporters. (See table 2.) by foreign banks in 1979. 3. Does not include acceptances held in loan portfolio. 4. Includes federal funds sold (purchased) and time depos- Business Loans its, but not demand deposits, due from (to) banks. 5. Includes cash items in process of collection, demand balances due from U.S. banks, and deposits due from banks An important asset item for the agencies and in foreign countries; the last category is not included for the branches is their nearly $30 billion in business weekly reporting banks as it is no longer reported separately on the weekly report of condition. loans to domestic and foreign borrowers. The 6. Any net assets (net liabilities) due from (to) own foreign substantial growth in these loans is illustrated branches are reported as part of "other assets" ("other liabilities," see note 9) on the weekly report of condition. in chart 3. In May 1979, outstanding business 7. Deposits of foreign governments and official institutions loans at agencies and branches were about one- are included for the agencies and branches but not for the weekly reporting banks; such deposits are reported with time fifth the volume of outstanding business loans deposits due to foreign banks on the weekly report of condition. at the weekly reporting banks, compared with 8. Includes demand deposits due to banks, certified and officers' checks, letters of credit, etc. one-tenth six years earlier. During the year 9. For the weekly reporting banks this category includes ending May 1979, these loans increased more a $41,887 million "residual," which roughly corresponds to capital; the remaining $51,126 million represents "other liabilthan $9 billion, or 45 percent. While a signifi- ities and subordinated notes and debentures." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Implementation of the International Banking Act 789 3. Business loans, 1973-79 branches of U.S. banks abroad probably are able to take advantage of similar relationships. Some portion of the relatively rapid growth of business loans at agencies and branches may also result from booking practices that tend to inflate the lending figures of agencies and branches without reflecting actual lending activity of these offices. For example, when a new U.S. office is established, some outstanding business loans may be transferred from the books of the parent to the books of the new office. Moreover, when a line of credit is negotiated between a foreign bank and a multinational customer, some portion of the subsequent loan may be assigned automatically to the U.S. office of the foreign bank. 1. The panel of weekly reporting banks and their report form Sources of Funding changed effective January 3, 1979. Historical data for 1973-78 for the new reporting panel were constructed by Federal Reserve Board staff. On the liability side of the balance sheet, a significant development has been the steady cant portion of this growth was undoubtedly growth of deposits of nonbanks at branches. related to financing U.S. trade with foreign (See chart 4.) During the year ending May 1979, countries and third-country trade, the agencies deposits of nonbanks at branches increased 56 and branches have also become increasingly percent to nearly $18 billion. Almost all of this active competitors in the domestic business loan growth can be attributed to an increase in time market. deposits of U.S. residents, primarily large cer- Competition from foreign banks, as well as tificates of deposit. Deposits of U.S. residents from nonbank sources of funds such as com- now account for more than three-quarters of the mercial paper, has resulted in changes in pricing branches' time deposit liabilities to nonbanks. practices on some U.S. business loans. Some As part of the management of the dollar foreign banks and their U.S. agencies and positions of their parent organizations, many branches now price loans in terms of Eurodollar agencies and branches engage actively in derates rather than quoting a prime rate and speci- posit-placing and deposit-taking activities in infying an associated compensating balance. In order to compete, some U.S. banks are also 4. Deposits of nonbanks at developing new pricing practices. Competititon U.S. branches of foreign banks, 1973-79 in pricing may account for a part of the growth Ratio scale, billions of dollars of business loans at agencies and branches. The competitive position in the U.S. market of the agencies and branches may also have been strengthened by their ability to capitalize on the close and continuing relationships their parent banks have with multinational customers in home markets and also, in some cases, on their special expertise in transactions with particular third-country markets. These aspects of competition are inherent in multinational banking, and 1973 1975 1977 1979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

790 Federal Reserve Bulletin • November 1979 terbank markets, both domestic and foreign. As 3. Activities of U.S. agencies and branches of of May 1979, net borrowings by agencies in foreign banks outside the principal state of operation, May 19791 the domestic interbank market were about $10 billion, while branches were net lenders of $6% billion. These figures reflect differences in the Millions Percent of Category of dollars total2 use of the domestic interbank market by institu- Total assets 222333,,,999333555 222222 tions from different countries. For example, Standard banking assets 111555,,,888333666 222111 U.S. agencies of Japanese banks appear to be Business loans 111000,,,000999999 333444 Deposits and credit balances continuing their practice of establishing and of nonbanks 222,,,111888666 111222 drawing on credit lines with a large number of 1. The "principal state" for a foreign bank with offices in more than one state is the state in which its agencies and U.S. banks. By contrast, U.S. branches of Eubranches have the largest amount of total assets. ropean banks are net lenders in domestic inter- 2. Ratio of each asset or liability item at offices outside bank markets. In foreign interbank markets, net the principal state to the same item at all U.S. agencies and branches of foreign banks. borrowings amounted to $2 billion for agencies and $8% billion for branches. deposits at offices outside the principal state is Although domestic deposits at branches have very small; these offices rely for funding on grown substantially, both agencies and branches interbank markets, advances from related insticontinue to rely heavily on funds advanced from tutions abroad, and advances from related their foreign parents and other related banking agencies and branches within the United States. institutions abroad. As of May 1979, agencies and branches owed about $21 billion net to their FEDERAL RESERVE REQUIREMENT related institutions outside the United States. REGULATIONS Reliance on external funds for internal lending appears to be a basic characteristic of interna- As the U.S. arms of many of the world's largest tional banking. It suggests that for a given banks, most agencies and branches conduct a regulatory structure and at given levels of lend- wholesale banking business in the United States. ing and deposit rates, nonindigenous banks find Their direct competitors in both domestic and more customers who wish to borrow than they foreign markets are large multinational U.S. can accommodate with local funds, and thus banks, which carry on a wholesale (as well as they rely on advances from related institutions a retail) banking business in the United States. abroad and on foreign interbank borrowings. This similarity suggests that, in implementing Moreover, a bank, particularly a nonindigenous the policy goals of the IB A, regulations deone, in general finds it more difficult to build signed for agencies and branches should be up a deposit business than to develop a loan comparable to those that apply to domestic business. money center banks. The IBA authorizes the Board to impose federal reserve requirements on U.S. agencies Multistate Operations and branches of foreign banks with consolidated Multistate operations of agencies and branches worldwide banking assets in excess of $1 bilare quite significant. As of May 1979, more than lion. The Board may also limit the maximum half of the 136 foreign parent banks operating interest rates that such agencies and branches agencies or branches in the United States had may pay on time deposits to the same rates that offices in more than one state. Activities outside member banks are permitted to pay. Agencies the principal state have been growing at about and branches are made eligible for services the same rate as other activities of agencies and provided by the Federal Reserve Banks. branches. By May 1979, standard banking In July 1979, the Board proposed regulations assets of agencies and branches outside the concerning reserve requirements and limitations principal state of operation amounted to nearly on deposit interest rates for agencies and $16 billion, of which $10 billion represented branches. The period for public comment exbusiness loans. (See table 3.) The amount of tends until November 23; final regulations, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Implementation of the International Banking Act 791 which take the public comments into account, gest that the actual effect of national aggregation will be published thereafter.1 The proposed reg- of reserve requirements on individual foreign ulations were designed to facilitate monetary banks would be small. policy and to implement national treatment by National aggregation would involve some applying to agencies and branches, insofar as administrative complexities, including relatively possible, Regulation D governing reserve re- extensive reporting requirements. For example, quirements for member banks and Regulation if agencies and branches were to have access Q governing payment of interest on deposits by locally to all Reserve Bank services, national member banks. However, if the proposals are aggregation would require a report of deposits adopted, the existing regulations would be from a foreign bank's agencies or branches in modified somewhat to take into account the each state as well as one from the foreign bank special characteristics of agencies and branches. family as a whole. Aggregation could be ap- The Federal Reserve Act and the Board's proached on different levels. One possible al- Regulation D require that member banks must ternative to aggregation at the national level hold reserves equal to a specified percentage of would be aggregation at the level of a single their deposits in an account at a Federal Reserve state or Federal Reserve District, which would Bank or in vault cash. The Board has proposed reduce the administrative complexity somewhat. that deposits at U.S. branches of foreign banks be classified exactly as at member banks and Credit Balances that the same reserve ratios apply. Insofar as agencies have liabilities that serve the same All existing agencies of foreign banks are state function as deposits at member banks, reserves licensed. In general, they do not accept deposwould be required on the same basis. its, but they do hold credit balances, which have some deposit-like characteristics. (Agencies in California are permitted to accept deposits of Aggregation foreign residents.) In the aggregate, credit bal- In calculating required reserves for a member ances of nonbanks at agencies total less than bank, deposits at all branches are aggregated, $1 billion. Under many state banking laws or and deposits held by one branch with another regulations, credit balances may arise only as are ignored. The Board proposed to follow the a by-product of other banking activities of the same procedure for calculating reservable de- agency. For example, the proceeds of a credit posits for agencies and branches. Because fed- extended or a collection made by the agency eral reserve requirements are graduated—that is, may be placed initially in a credit balance for the average reserve ratio faced by a member the agency's customer, who can .then draw bank increases as its deposits increase—a drafts to transfer the balance to third parties. foreign bank's average reserve ratio would tend In supervising the activities of agencies, most to be larger if deposits at all offices were aggre- state banking authorities strictly limit the purgated. At least in principle, national aggregation poses for which drafts may be drawn against credit balances. of all deposits at agencies and branches of a particular foreign parent bank would promote In order both to recognize the deposit-like competitive equality with the large domestic characteristics of credit balances and to promote money center banks. However, estimates sug- competitive equality, the Board proposed to treat credit balances at agencies as deposits. 1. On October 6, 1979, the Board announced that member banks, Edge corporations, and U.S. agencies This treatment would parallel the treatment of and branches of foreign banks would be required to deposit balances at member banks and at Edge maintain as reserves 8 percent of the increase in their corporations that serve the same purposes as managed liabilities above base levels. This marginal reserve requirement, designed to dampen inflationary credit balances and have always been reservaforces, does not reflect a Board determination of the ble. Some commentators on the Board's proissues raised by the July proposals for implementing posals have suggested that reserve requirements reserve requirements under the IBA. See 44 Federal Register 60,071 (1979). on credit balances would make such balances Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

792 Federal Reserve Bulletin • November 1979 uneconomical and thereby create a serious Federal Reserve zone (the geographic area competitive disadvantage for the agencies. served by a Federal Reserve Bank or branch) in which a foreign bank operates an agency or branch and holds a reserve account. Preliminary Advances from Foreign Parent surveys have shown that use of Reserve Bank As discussed earlier, net advances from the services by agencies and branches is not likely foreign parent and other related banking institu- to be substantial, at least initially. tions abroad are an important source of funding The IBA provides access to the Federal Refor the agencies and branches. Comparable bor- serve discount window for agencies and rowings by domestic member banks from their branches when they begin holding reserves. As foreign branches are subject to a Eurodollar part of its studies on implementation of the IBA, reserve requirement. To provide comparable the Board's staff reviewed possible policies govtreatment of agencies and branches, the Board erning administration of agency and branch proposed that net borrowings by agencies and access to the discount window. Domestic money branches from related banking institutions center banks, with which agencies and branches abroad also be subject to the Eurodollar reserve compete most directly, are expected to use requirement. Proceeds of commercial paper sold money market sources of funding before borin the United States by the foreign bank would rowing at the discount window. Thus national be subject to Eurodollar reserve requirements treatment suggests that an agency or branch only if and when the funds were brought back should normally seek adjustment credit from its to the United States for lending or investment. parent or from the national or international Since sales of assets by an agency or branch money markets before turning to the Federal to the foreign parent bring funds from abroad Reserve for assistance. Another possible policy into the United States, in economic effect they would require that a family of agencies and are similar to Eurodollar borrowings. Therefore, branches not reduce its funding from the foreign the Board proposed to apply the Eurodollar parent at the same time that it was using disreserve ratio to all such funds. count window credit. Another would involve coordinating the lending to agencies and Agencies and branches of a foreign bank, as branches of a single foreign bank family to part of the same corporate entity, do not have ensure that the family did not use the discount a separate capital account from that of the window as a permanent source of funds by foreign parent. However, some funds advanced borrowing sequentially from several Reserve to agencies and branches by their parents may Banks. serve the function of capital for these institutions. Since member banks are not required to hold reserves against their capital, the Board Impact of the Regulations proposed that net borrowings of agencies and branches from related banking institutions The Board's proposed regulations, as well as abroad be exempted from reserve requirements the other new regulations discussed below, if up to 8 percent of standard banking assets. adopted, might have a considerable impact on the business of the agencies and branches. Under the proposals, these institutions would be Federal Reserve Bank Services required to hold over $1 billion in balances at Under the Board's proposals, when agencies Federal Reserve Banks, a requirement that and branches become subject to reserve re- might increase their gross operating costs by quirements, they would be permitted to use the more than $100 million per year at current services provided to member banks by the Re- interest rates. These estimates assume that serve Banks. These services, which include access to Federal Reserve services would enable check clearing, wire transfer of funds and se- agencies and branches to reduce their correcurities, safekeeping of securities, and provision spondent balances at domestic banks by about of coin and currency, would be provided in each 20 percent. Agencies and branches might adjust Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Implementation of the International Banking Act 793 both their offering rates for funds and their loan mercial banks. A foreign bank that has no rates to offset part of the cost of required re- subsidiary bank in the United States (and, serves, and other operating practices might also therefore, is not a bank holding company) is be changed to minimize reservable liabilities. precluded by the IBA from acquiring a bank Moreover, the benefits conferred by the IBA, outside the home state. A foreign bank that is especially their assured status under federal law, already a bank holding company continues to may create new profit opportunities for the be limited by the provisions of the Bank Holding agencies and branches. Company Act that preclude the acquisition of a bank in a state other than that in which its subsidiary bank is located. A foreign bank might be further limited under the IBA if, for example, LIMITS ON INTERSTATE it chose as its home state a state other than that AND NONBANKING ACTIVITIES in which its subsidiary bank is located. The At the time the IBA was under consideration, possibility of future bank acquisitions could be the Congress perceived the ability of foreign an important factor influencing a foreign bank's banks to establish domestic deposit-taking of- choice of home state, in addition to the factor fices in more than one state as a competitive of being able to establish full-service branches advantage because domestic banks are not per- only in the home state. mitted to establish branches outside the state in Before enactment of the IBA, foreign banks which they operate and because bank holding having U.S. agencies or branches (but not owncompanies are subject to a similar limitation. ing a U.S. commercial bank) were not subject Although limited interstate operations may be to federal restrictions on nonbanking activities conducted by domestic banks through, for ex- in the United States, despite the longstanding ample, loan production offices or Edge corpora- U.S. policy requiring separation of banking and tions, the former may not take deposits and the commerce. The IBA addressed this situation by domestic deposit-taking capabilities of the latter applying to such foreign banks limitations on are severely limited. In contrast, before enact- nonbanking activities similar to those that apply ment of the IBA, a foreign bank could establish to domestic bank holding companies. The refull-service branches wherever state law per- strictions apply only to U.S. activities begun mitted. or applied for after July 26, 1978; activities The IBA attempted to foster competitive eq- engaged in on that date, including securities uity by limiting interstate expansion of domestic underwriting, were 4'grandfathered." deposit-taking capabilities of foreign banks. To In recognition of the authority of some banks this end, a foreign bank with offices in more abroad to engage in a variety of nonbanking than one state is required to elect one of those activities and the impracticality of extending states as its home state. The foreign bank may U.S. rules to cover all operations of a foreign in the future establish agencies or branches bank, the IBA, under certain circumstances, outside the home state, but such branches must permits foreign bank holding companies and agree to accept only deposits that may be ac- foreign banks with U.S. agencies and branches, cepted by an Edge corporation. Within the home to engage indirectly in nonbanking activities in state, the foreign bank may establish additional the United States that would not generally be domestic deposit-taking offices if the state per- permissible for domestic bank holding compamits. The IBA places no limits on the deposit- nies. This provision was added to the IBA in taking activities of offices that existed or had order not to inhibit investment by foreign enterbeen applied for on or before July 27, 1978, prises in the United States. Foreign bank holdnor on the lending powers of agencies or ing companies and foreign banks with U.S. branches outside the home state. agencies and branches may, with the prior ap- The election of a home state by a foreign bank proval of the Board, engage in nonbanking also affects its ability to do a banking business activities that are permissible for domestic bank in the United States through subsidiary com- holding companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

794 Federal Reserve Bulletin • November 1979 Supervision and Regulation 4. Selected assets and liabilities of Edge corporations, 1973-79 The IBA left primary responsibility for supervi- Millions of dollars sion and regulation of agencies and branches to the federal or state licensing authorities. The June June June Category 1973 1976 1979 Federal Reserve System was given residual Total assets — — — 66,,004400 7,237 13,265 supervisory authority in order to ensure a na- Standard banking tional overview of the multistate activities of assets 2,051 3,780 4,847 Business loans 862 1,519 1,531 foreign banks. To enable it to carry out its Deposits of nonbanks. . 609 1,349 1,735 Domestic 148 216 229 supervisory responsibilities, the Federal Reserve Foreign 461 1,133 1,506 may, when necessary, examine agencies and Number of institutions 42 58 66| branches, New York investment companies, and subsidiary commercial banks of the foreign bank 16 of which owned more than one Edge coror bank holding company. Normally, the Fed- poration. eral Reserve would rely on examinations carried While standard banking assets of Edge corout by the state or federal authority that licensed porations have more than doubled over the past the agency or branch. six years (table 4), this growth was considerably The Federal Reserve has received statistical less rapid than that of agencies and branches. reports, including balance sheet information, Business loans to domestic and foreign customfrom agencies and branches for a number of ers at Edge corporations totaled $1.5 billion in years. Data based on these reports have been June 1979 and amounted to only 12 percent of included in the new Federal Reserve measures total assets. Growth of deposits at Edge corof commercial credit and bank nondeposit funds porations mainly reflects foreign deposits bethat were discussed in the September 1979 cause regulatory restrictions prevent Edge cor- BULLETIN. A revised version of the report of porations from accepting domestic deposits that condition for agencies and branches has been are unrelated to specific international transacproposed by the Federal Financial Institutions tions. Examination Council, which was created last The amendments to the Edge Act made by year to coordinate the bank examination activi- the IBA were intended both to increase the ties of the federal bank regulatory agencies. If ability of Edge corporations to finance U.S. the proposal is adopted, the revised report of trade and to provide domestic banks with a more condition would be required quarterly from effective vehicle for competing with agencies agencies and branches for supervisory purposes and branches in the United States. At the same by the federal bank regulatory agencies and time, the deposit-taking powers of U.S. would be publicly available. branches of foreign banks formed outside the home state after July 27, 1978, were limited to those that the Board authorizes for Edge EDGE CORPORATIONS corporations. Completing the pattern of overall To carry out the overall congressional objective competitive balance, the IBA authorized ownof promoting competitive balance between do- ership of Edge corporations by foreign banks. mestic and foreign banks in the United States, In some states in which they are barred from the IBA instructed the Board to revise its regu- establishing agencies or branches, foreign banks lations to permit expansion of the activities can be expected to use Edge corporations to of Edge corporations. These corporations are engage in international banking activities. chartered by the Board to engage in international banking and financial operations and may be Revisions to Regulation K established in locations outside the state in which their owner operates. At present all In response to the mandate of the IBA, the banking Edge corporations are owned by mem- Board made significant changes in its Regulation ber banks or their parent holding companies, K. Reserve requirements on Edge corporations Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Implementation of the International Banking Act 795 were revised to correspond to those of member the larger capital of the consolidated Edge corbanks, thereby eliminating the longstanding 10 poration. percent floor on the Edge corporation reserve ratio. Other revisions were made to enhance the FEDERAL LICENSING AND ability of Edge corporations to compete with agencies and branches with respect both to their DEPOSIT INSURANCE domestic lending powers and to their deposit- The IBA provides, for the first time, for the taking authority. establishment of agencies and branches that are Agencies and branches are permitted to ex- federally licensed by the Comptroller of the tend credit without regard to the type of trans- Currency. A foreign bank Is permitted to estabaction , but domestic lending activities of Edge lish a federal agency or branch in any state in corporations are restricted by statute to financ- which it is not already operating a state agency ing international trade, a provision that has been or branch and. in which, the establishment of an. interpreted strictly. The changes in Regulation agency or branch is not prohibited by state law. K relaxed this interpretation in order to allow The Comptroller's proposed regulations would Edge corporations to finance domestic produc- permit a foreign bank to establish U.S. offices tion of goods and services identifiable as being without regard to whether the foreign bank's directly for export. On the liability side, Edge home country would grant equivalent access to corporations are authorized to accept demand, U.S. banks; some states now require such retime, and savings deposits from, and to issue ciprocal treatment. Therefore, federal licenses negotiable certificates of deposit to, U.S. resi- may be attractive to foreign banks from coundents, provided that the funds are related to an tries that do not permit branches of U.S. banks. international transaction. (For both loans and To protect depositors, the IBA requires a deposits. Edge corporations and their customers federal agency or branch to hold at a member must document that each transaction is for in- bank deposits or Investment securities equal in ternational trade-related purposes.) The long- value to 5 percent of its liabilities. These "capstanding power of Edge corporations to accept ital equivalency deposits" are intended to subdeposits from foreigners was retained. stitute for the capital required of national banks. A bank has always been permitted to establish The Comptroller also Is authorized to require Edge corporations in more than, one state. the federal agency or branch to hold a higher However, the proportion of its capital and sur- percentage of liabilities in the form of pledged plus that a bank may invest in all of Its Edge assets. However, the Comptroller's proposed corporation subsidiaries is limited. In turn, the regulations require simply that insured federal lending limit to a single customer for each branches comply with the asset-pledge require- Individual Edge corporation is based on its own ments of the Federal Deposit Insurance Corcapital and surplus. Thus, only banks with very poration , discussed later. If the Comptroller's large amounts of capital have found multiple asset pledge requirements are less burdensome Edge corporations an attractive way to carry on than those of some states, foreign banks operatan international banking business. By contrast, ing in such states might seek federal rather than lending by agencies to individual customers is state licenses. not limited, and lending limits for branches are The IBA provides for FDIC Insurance for all based on the capital of their parent banks. domestic deposits in a U.S. branch of a foreign The Board revised Regulation K to permit, bank that accepts deposits of less than $100,subject to prior Board approval, domestic inter- 000. Insurance for branches taking retail deposstate branches of Edge corporations. Competi- its is generally compulsory, although state-litive equality with agencies and branches should censed branches are subject to the insurance be promoted by the revised Regulation K be- requirement only if they are located in a state cause a branch of an Edge corporation will be that requires state banks to have FDIC Insurable to lend to an individual customer based on ance. The FDIC Is authorized to exempt a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

796 Federal Reserve Bulletin • November 1979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

797 Changes in Bank Lending Practices, 1977-79 This article was prepared by Thomas F. Brady Lending (STBL). The STBL gathers informaof the Board's Division of Research and Sta- tion on the volume of short-term (under one tistics.1 year) and long-term (one year and over) business loans acquired during one week each quar- Banks have generally tightened their terms of ter, the interest rates charged on them, and other credit through the first eight months of 1979, characteristics such as maturity and whether continuing a policy that began in early 1978. rates paid are fixe,d or floating. The survey However, the evidence of increasing restriction periods are the first full weeks of February, has been less pronounced this year than it was May, August, and November, and thus correin late 1978, according to responses to the spond closely to the dates of the LPS. Re- Senior Loan Officer Opinion Survey on Bank spondents to the STBL include 48 large com- Lending Practices (LPS). mercial banks, of which all but one also respond The Federal Reserve has conducted a quar- to the Lending Practices Survey, and a stratified terly survey of changes in lending practices at sample of other banks from which estimates for selected commercial banks since 1964.2 These all commercial banks are derived.5 Generally, surveys provide qualitative information on the information from the STBL corroborates the changes in current and anticipated business loan responses given to the LPS, suggesting that demand, various nonrate elements of business conclusions drawn from the latter are frequently loan pricing, and willingness to extend business valid for the entire banking system.6 Because loans and other types of credit including mort- the commercial banking system includes banks gages and consumer installment loans. The re- of many different types and classes, however, sults of the LPS, which is conducted in Febru- loan demand and lending policies may differ ary, May, August, and November of each year, considerably within that system. For example, have appeared regularly in the FEDERAL RE- table 1 illustrates the often quite different rates SERVE BULLETIN. The most recent article dis- of growth of business loans of large banks and cussed the surveys taken in 1976.3 This article of smaller banks over successive stages of the analyzes the 11 surveys from February 1977 to business cycle.7 August 1979.4 During 1976 large weekly reporting banks To aid interpretation of the results, references were as liquid as they had been at any time are made to the Survey of Terms of Bank 1. Research assistance for the article was provided 5. The STBL, which is available beginning in Febby Mary McLaughlin. ruary 1977, also includes information on construction 2. Respondents to the current survey include 121 and land development loans and loans to farmers. A banks. As of September 1978, almost two-thirds of summary of the most recent results of the STBL appears respondents had assets between $1 billion and $5 bil- monthly in the BULLETIN, p. A26. lion; 19 percent had assets of less than $1 billion and 6. The majority of banks answering any particular 16'/2 percent had more than $5 billion. The current LPS question generally respond no change in the most survey was preceded by the Survey of Changes in Bank recent three months; consequently it is necessary to Lending Practices, which had the same respondents but focus on the responses of those banks that have experia somewhat different format. enced change in order to determine in which directions 3. FEDERAL RESERVE BULLETIN, April 1977, pp. banks, on balance, appear to have moved. 341-46. 7. Large commercial banks are weekly reporting 4. A statistical summary of these surveys appears in banks with domestic assets on December 31, 1977, of the Appendix Tables of this article. $750 million or more. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

798 Federal Reserve Bulletin • November 1979 1. Growth of business loans at commercial the number of LPS respondent banks reporting banks, 1975-79 stronger business loan demand exceeded the Seasonally adjusted annual rate generally very low number reporting weaker Year and All commer- Large banks1 Other banks2 demand in each of the 11 surveys examined in quarter cial banks this article. 1975 Respondent banks initially did not attempt to Ql -4.2 -8.1 2.4 resist strengthening loan demand but continued Q2 -9.8 -13.3 -4.0 Q3 -3.3 -10.5 8.0 on balance to ease terms of credit and other loan Q4 1.9 -4.4 11.4 policies, as they had been doing since mid- 1976 1975. They altered this attitude early in 1978, Ql -3.6 -7.1 1.1 and began on balance to report less willingness Q2 -4.8 -9.5 1.9 Q3 3.7 -.9 10.0 to lend. This shift coincided with a growing Q4 9.8 7.4 12.9 reliance on more expensive borrowed funds, 1977 particularly after mid-1978. The pace of this Ql 9.9 5.5 15.7 movement toward restriction, as gauged by the Q2 6.9 7.0 6.8 Q3 10.3 5.6 16.2 margin of the number of banks reporting credit Q4 13.5 8.7 19.4 tightening over those that reported easing, be- 1978 came particularly noticeable in late 1978. Addi- Ql 18.0 15.1 21.1 tional restriction reported in the first three quar- Q2 16.7 20.0 12.5 Q3 12.6 8.2 18.3 ters of 1979 has been relatively mild. Q4 14.1 4.6 25.5 1979 2. Selected balance-sheet ratios Ql 20.4 14.8 26.7 at large commercial banks, 1973-79 Q2 17.0 26.2 7.1 Q3^ 20.3 24.0 16.1 Ratio Period Borrowing Liquid assets to selected assets1 to liabilities2 1. Weekly reporting banks with domestic assets, as of December 31, 1977, of $750 million or more. 1973—Dec. 32.7° 1 1.0 2. Defined as domestically chartered banks with assets of 1974—Dec. 36.5l> 9.7 1975—Dec. 33.2 13.0 less than $750 million plus foreign related banking institutions 1976—Dec. 29.7 14.1 in the United States. e Estimated. 1977 Ql 28.3 13.2 Q2 28.4 13.5 Q3 29.5 13.5 since late 1972 (table 2). Over the course of Q4 31.4 14.0 the year, respondents to the LPS revealed a 1978 Ql 32.3 12.1 generally increased willingness to extend busi- Q2 32.7 1 1.4 ness and other loans. However, demand for Q3 33.0 10.5 Q4 35.5 10.5 business loans in 1976 was lackluster and, for 1979 respondents to the LPS, it consistently fell short Ql 36.8 12.2 of expectations. With a weak demand for credit Q2 37.7 12.3 August ... 38.9 1 1.7 and an accommodative monetary policy, large banks noticeably increased their liquidity and 1. Monthly averages of Wednesday figures. The numerator includes all CDs of $100,000 or more, net federal funds reduced their dependence on borrowed funds purchased and security repurchase agreements, gross liabilities over the year. to own foreign branches, and all other liabilities for borrowed money other than Treasury tax and loan accounts and borrow- Growth of business loans began to pick up ings from Federal Reserve Banks; the denominator includes toward the end of 1976, and an increasing all assets less federal funds sold and cash items in process of collection. minority of bank loan officers indicated that they 2. Monthly averages of Wednesday figures. Liquid assets were beginning to see a turnaround in loan include Treasury and other securities maturing in one year or less, loans to brokers and dealers and domestic commercial demand. Strengthening business loan demand banks, holdings of bankers acceptances, and gross sales of had become much more evident by the first federal funds. Liabilities are total liabilities less capital accounts, valuation reserves, and demand deposits due to banks. survey of 1977, and with a single exception, e Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Bank Lending Practices 799 1. Selected measures of the cost of credit pensating balances had been eased in the three Percent months ending in mid-February, and well over one-third reported greater willingness to make business term loans. A substantial minority of reporters also had become more willing to make consumer installment and single-family mortgage loans, while only a very few banks had become less inclined to extend any category of credit. STBL data for February 1977 indicate that banks granted no particular interest rate concessions on business loans even though the prime rate, which remained at the cyclical low it had 1. Weighted-average interest rate on short-term commercial reached several months earlier, was high relaand industrial loans made above prime rate. 2. Converted from a discount rate basis to a nominal annual tive to the costs of alternative sources of shortyield. term credit such as commercial paper. The The nominal cost of credit rose over the weighted-average interest rate on short-term period as the Federal Reserve operated to re- business loans made above the prevailing prime strain the growth of monetary aggregates and rate was high relative to the prime rate at 48 to resist inflationary pressures. From the first large banks and other banks (see table 3A).8 quarter of 1977 through the last quarter of 1978, Short-term interest rates began to rise in May the prime rate rose 5V2 percentage points, in 1977 as the Federal Reserve reacted to strong a series of 22 moves, to 113A percent. It then growth in M-l and as the demand for business stabilized and declined 1/4 percentage point credit strengthened owing to rising capital extoward mid-1979 before returning to 11% per- penditures, especially on inventories. The precent shortly before the last survey discussed in vailing prime rate rose 1/4 percentage point this article. (See chart 1.) immediately before the May LPS survey. The upward movement in the cost of credit was slowed somewhat both at large banks and at 1977 Q1 TO 1978 QL: other STBL reporters as the weighted-average A MOVE TOWARD ACCOMMODATION interest rate on short-term loans made above the The demand for short-term business credit gen- prime declined relative to the prime. erally was strong in the first quarter of 1977. The decline in the percentage of short-term Corporate demands for external funds increased business loans made below prime in May (table during this period owing to a stepup in the pace 3B) is likely to have been related to the inof investment in plant and equipment; at the creased level of short-term interest rates relative same time corporations reduced their efforts to to the prime rate since February, rather than to lengthen average debt maturities, which earlier tighter lending policies. The bulk of belowhad held down the demand for short-term credit. prime lending appears to be the result of pricing More than one-fourth of the loan officers re- techniques introduced by large commercial sponding to the LPS of February 1977 reported banks to meet competition from the commercial that business loan demand had strengthened paper market, finance companies, and branches from three months earlier, and a clear majority expected loan demand to strengthen in the three months following the survey date. 8. Loans made below the prime rate are excluded Even as credit demand strengthened in early from this calculation to avoid distortions arising from 1977, many banks continued to pursue policies changes in loan pricing practices resulting from increased competition from branches and agencies of encouraging further loan growth. A fifth of foreign banks and others. These changes are discussed respondents reported that terms relating to com- later in this article. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

800 Federal Reserve Bulletin • November 1979 3. Selected terms of commercial and industrial loans Percent unless noted otherwise. 1977 1978 1979 Maturity Feb. May Auji. Nov. Feb. May Aug. No1 Feb. May Aug. by type of bank A. Weighted-average interest rate on loans made above prime less the prime rate1 Short-term2 48 large banks. .64 .59 .58 .56 .56 .60 .62 .86 .68 .70 .98 Other banks ... 1.62 1.43 1.27 .95 .96 1.01 .94 .97 .81 .86 1.31 B. Loans made below prime Short-term 48 large banks. 8.0 4.3 13.6 10.9 15.4 12.9 16.1 14.3 34.2 39.8 37.5 C. Loans made on a fixed-rate basis Short-term 48 large banks. 33.5 36.3 38.4 28.5 39.9 33.6 39.0 33.6 36.5 42.6 39.4 Other banks ... 72.2 66.5 54.0 57.2 54.8 56.4 59.1 36.4 59.5 63.1 60.6 Long-term 48 large banks. 25.4 33.1 18.7 31.0 35.9 57.9 18.4 30.2 23.5 23.6 22.7 Other banks ... 74.4 77.7 60.8 59.8 62.1 59.8 50.2 47.8 52.5 70.6 69.9 D. Loans made under commitment Short-term 48 large banks. 54.2 57.3 49.1 53.6 47.0 51.8 55.0 58.7 54.7 53.1 45.3 Other banks ... 43.0 48.4 40.6 38.1 38.0 36.7 32.6 27.0 40.5 40.8 46.7 Long-term 48 large banks. 64.0 86.0 78.9 62.4 63.7 52.8 75.5 80.4 71.6 74.9 83.7 Other banks ... 29.8 25.7 39.6 34.8 51.0 37.2 29.5 40.6 39.9 34.6 26.4 E. Weighted-average maturity (months) Short-term 48 large banks. 3.4 2.7 3.2 3.6 3.3 2.8 2.9 3.3 3.0 2.7 2.3 Other banks ... 3.5 3.1 2.9 3.2 3.0 2.7 3.1 2.9 3.3 3.1 3.1 Long-term 48 large banks. 42.4 47.1 54.9 50.5 44.3 53.7 45.7 43.8 44.5 46.3 37.9 Other banks ... 40.8 21.7 63.7 38.6 39.8 42.8 44.4 42.5 50.7 49.4 46.8 1. Interest rates, expressed as simple annual rates, are weighted by the dollar volume of loans. 2. Loans with an original term to maturity of less than one year. and agencies of foreign banks. The last have paper; the cost of this credit is keyed to the emerged as aggressive and increasingly impor- federal funds rate.10 tant suppliers of short-term credit in recent By mid-May the proportion of banks reportyears.9 To counter the inroads that these com- ing stronger loan demand had risen to more than petitors have made, many money center banks one-half, about in line with expectations rehave begun, for certain high-quality customers, ported three months earlier, while evidence of to link the price of very large loans (above weakening had virtually disappeared. Respond- $1 million) to money market rates such as the ent banks once again appeared to welcome the commercial paper rate. Moreover, some large strengthening loan demand. Very few reported banks have introduced a facility to provide very short-term credit (usually no more than 10 days) 10. Generally, well over 90 percent of below-prime to customers preparing to issue commercial loans are made at rates above the commercial paper rate or the federal funds rate. The small volume of loans made below these market rates appears to reflect a restructuring of the terms of outstanding loans. 9. The growth of business loans at branches and Loans made below the prevailing prime at other than agencies of foreign banks has accelerated in recent 48 large banks are not analyzed because many smaller years, growing in 1977, 1978, and 1979 (for the 12 banks are believed to operate with prime rates that may months ending in August) at rates of 14 percent, 53Vi differ substantially from the prevailing prime rate at percent, and 50Vi percent respectively. larger banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Bank Lending Practices 801 any moves toward restriction and many estab- balance-sheet changes, which continued into lished more liberal credit policies, such as easier 1978, and in part a further strengthening of loan conditions regarding the maturity of term loans. demand, respondents' replies to LPS questions Despite the greater willingness of LPS banks about changes in their lending practices were to extend maturities, the average maturity of somewhat mixed in the February 1978 survey. short-term loans at 48 large banks and other As in the previous survey, more banks had eased banks declined between February and May compensating balance requirements than had (table 3E), suggesting that borrowers may have tightened them, and more banks showed a viewed increases in interest rates at that time greater willingness to make certain types of as likely to be reversed. loans—commercial and industrial loans with In each of the last two surveys of 1977 the maturities of one to five years, installment loans number of respondents reporting strengthening to individuals, and participation loans with corloan demand, although still substantial, de- respondents—than reported less willingness. clined. This initial evidence that the robustness For longer-term commercial and industrial loans of loan demand might be starting to slacken was and other credit categories, however, the numaccompanied by a continued, but less pro- ber of banks that had become less willing to nounced, move toward general ease. For ex- extend credit now equaled or exceeded the ample, there was a narrowing in the margins number that had become more willing. by which the number of banks reporting greater Effective in February 1978, the format of the willingness to make term business loans, and Lending Practices Survey was altered. The new easier credit policies exceeded the number re- reporting form asks banks to indicate changes porting greater restriction. Moreover, for the in the standards of creditworthiness that are first time since 1974, the number of banks applied to borrowers to determine their qualifireporting that they had taken a firmer position cation for the prime rate and for a given spread when reviewing credit applications from new above the prime rate.12 On balance, these and nonlocal customers exceeded the number standards had not been changed in the three reporting ease. months ending in mid-February 1978, as the The cumulative effect of easing continued to number of banks reporting more stringent be reflected in developments in the cost of bank standards about matched the number reporting credit in the second half of 1977. Even as easier standards. Consistent with this report, the increases in the prime rate lagged behind the weighted-average interest rate on short-term rapidly rising commercial paper rate, the loans made above the prime rate rose as much weighted-average interest rate on short-term as the prime rate, which was increased 1/4 business loans made above the prime rate tended percentage point during the survey period, apto decline further relative to the prime.11 (See proximately in line with changes in the 90-day chart 1 and table 3A.) commercial paper rate. Large banks apparently felt some liquidity Increases in short-term interest rates in late pressures during 1977, although their position 1977 and early 1978 were quite mild—reflecting as the year ended was about unchanged from in part slower growth in M-l in late 1977 and 12 months earlier. Reliance on borrowed funds further moderation in early 1978—and expectadid increase, however, particularly during the tions of continued rate stability in the near term second half, as inflows to savings and small time deposits slowed. Perhaps reflecting in part these 12. These items replace the question from the earlier 11. The prime rate typically moves sluggishly rela- format asking banks to describe changes in terms and tive to nonadministered rates. In part, this relationship conditions with respect to interest rates charged. Generreflects the use by some large banks of average market ally, the responses had mirrored developments in the rates over recent weeks to help determine appropriate prime rate and thus failed to provide additional inforlevels for the prime rate. mation on banks' interest rate policies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

802 Federal Reserve Bulletin • November 1979 may explain the greater willingness on balance for mid-May. For example, of the one-third of to make short-term loans at fixed rates in the LPS respondents reporting that their banks had February 1978 survey. At the same time the become less willing to make fixed-rate, longnumber of LPS respondents that were less will- term loans by mid-May, more than 90 percent ing to make long-term loans at fixed rates ex- had experienced a strengthening of loan demand ceeded the number that were more willing. The in that period. proportion of short-term loans made at fixed Other evidence of tightening was abundant. rates at 48 large banks was sharply higher in The number of banks reporting firmer compen- February than three months earlier; however, sating-balance requirements clearly exceeded the proportion of long-term loans made at fixed the number that reported easing, a reversal from rates also increased somewhat (table 3C). the previous survey, and a reduced willingness to extend most types of credit was apparent. Moreover, the balance between banks easing and those firming credit standards shifted clearly 1978 Q2 TO 1979 Q3; toward the latter, with respect to qualifying both INCREASING RESTRICTIONS for the prime rate and for a given spread above The general move toward ease came to a halt prime. Consistent with these developments, the in the three months ending May 1978. By this weighted-average rates on loans made above the time banks had been reporting a general easing prime rate rose relative to the prime both at 48 of credit policies for 14 consecutive quarters, large banks and at other banks between February and the cumulative effect of this easing on bank and May. lending behavior is suggested by the response Banks continued to tighten credit policies on of 48 large banks to the burgeoning loan demand balance over the three months ending in August that developed in the February-May period. 1978, as the perceived demand for commercial Strengthening was reported by more than three- and industrial loans continued to strengthen. fourths of LPS respondents, including many Almost a quarter of LPS respondent banks rewho had anticipated in mid-February that loan ported tightening standards to qualify for a given demand would remain unchanged. Some of this spread above the prime rate, which moved up demand appears to have been directed toward 3/4 percentage point during this period, and the long end of the market as growth in term the number of banks that tightened standards loans was rapid at large commercial banks in to qualify for the prime exceeded the number this period. This demand likely reflected a surge reporting ease. These reported shifts in policies in expenditures on plant and equipment during were not clearly reflected in interest rate develthe second quarter. Moreover, with short-term opments, however, for the average rate charged rates moving up sharply just before the survey, at large banks on loans made above the prime demand was likely due as well to attempts by rate was about unchanged, while at other banks borrowers to secure fixed-rate, long-term credit it declined. As in the previous survey, respondat what they expected to be relatively low rates. ent banks as a group continued to report a The accommodative stance of 48 large banks tightening of compensating-balance requireallowed borrowers to extend significantly the ments, and the evidence of growing unwillingmaturity of their long-term loans (last panel, ness to make business and most other types of table 3E) while securing about 58 percent of loans became somewhat more pronounced. them (more than in any other survey being Perceived loan demand continued to examined) at fixed rates (table 3C). strengthen on balance in the three months end- The very strength of loan demand, combined ing November 1978, and in the course of the with a sharp decline in bank liquidity and a year more than 90 percent of respondents had further increase in reliance on borrowed funds, reported strengthened business loan demand at apparently contributed to the clear shift toward least once. Moreover, at large weekly reporting less accommodation that emerged in the survey banks, liquidity positions deteriorated further Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Bank Lending Practices 803 over the year, and reliance on borrowed funds further increases in long-term rates had become approached the previous cyclical peak. Probably more likely. These developments are not fully in response to these developments, reports of reflected in the actual shares of fixed-rate loans tightening credit policies rose dramatically in made in November (table 3C). the November survey, reaching the high point Within six weeks of the November 1978 LPS in the period being discussed. The criteria used the prime rate had risen a full percentage point, to review credit requests from established and to 11% percent. The commercial paper rate and local area customers were tightened on bal- other short-term market rates then generally ance—for the first time in the expansion—and declined over most of the remainder of the the proportion of banks that tightened compen- period discussed in this article. In sympathy sating-balance policies rose to more than one- with this abatement in the upward pressures on fourth while the number that reported easing interest rates, the proportion of respondent was very small. Moreover, about one-third of banks reporting a lesser willingness to extend banks had now become less willing to make most types of credit in the three Lending Pracmost categories of loans, with the proportions tice Surveys of 1979 declined somewhat, from somewhat lower only for consumer installment about 20 to 30 percent in the November 1978 loans and participation loans. For only a few survey to a range of 15 to 20 percent; however, loan categories did even a small number of the proportion reporting a greater willingness to respondents report easing. lend continued to be very low in 1979. As this restriction developed in the period A good part of the variation in other credit from mid-August to mid-November, the prime policies of respondent banks in 1979 appears rate rose seven times, by a total of 13A percent- to have been in connection with relative interest age points. An even more rapid rise in the rate movements. From late 1978 through midcommercial paper rate narrowed and then vir- 1979, significant downward pressure developed tually eliminated the spread between it and the in short-term credit markets, reflecting in part prime rate. Perhaps in part due to this unusually a reversal of earlier outflows of private capital large decline in the relative cost of bank credit, from the United States as prospects for the dollar one-fourth of respondent banks reported tight- on exchange markets improved. Although ening standards to qualify for the prime rate and short-term market rates declined steadily during a third reported tightening them for a given this period, the prevailing prime rate was unspread over prime. Consistent with these re- changed from late December through mid-June, ports, the weighted-average nominal interest and the spread between the prime and the 90-day rate charged on short-term loans made above commercial paper rate became substantially the prime rate rose sharply relative to the prime wider than at any time since early 1977. Probafrom August to November at 48 large banks.13 bly in part due to some consequent rechanneling Greater restriction was also apparent in poli- or rescheduling of credit flows, perceived cies regarding fixed-rate term loans. Well over strengthening of loan demand ceased abruptly a third of respondents to the November 1978 in mid-February 1979, as the proportion of survey had become less willing to make short- banks reporting easier loan demand—about term loans of this type; for long-term loans the one-fifth—actually exceeded the number reportproportion was even greater. These shifts— ing stronger demand, for the first time since similar to those reported in the previous two 1976.14 Many respondents apparently viewed surveys—may have reflected concern that rates this weakness as temporary; more than a fourth would continue to rise in the near term and that expected loan demand to strengthen over the 13. The proportion of short-term loans made below the prime rate also declined from August to November, 14. As table 1 reports, however, loans at all comalthough this may have been largely due to the rise in mercial banks continued to grow substantially over the market rates relative to the prime over this period. first quarter of 1979. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

804 Federal Reserve Bulletin • November 1979 subsequent three months, while only about a LPS survey, in part due to a decline of 1/4 tenth looked for weakening. percentage point in the prime rate in mid-July With the prime rate relatively high, there was and in part due to a sharp rise in market rates some tendency, particularly among very large that began in late July. The spread continued respondents, to ease compensating-balance re- to narrow even after the decline in the prime quirements in the three months ending in mid- rate was reversed in late July. February 1979. In addition, the average rate The demand for short-term credit also concharged on short-term loans made above prime tinued to increase during this period, in part fell relative to the prime rate at the 48 large reflecting a further buildup in business invento- STBL reporters as well as at other banks. Also, ries, and more than 40 percent of LPS respondthere was a sharp increase in the proportion of ents reported a strengthening in business loan short-term loans made below prime at the 48 demand in the three months ending in midlarge banks. August. As in the survey three months earlier, Perceived loan demand rebounded sharply in only a handful of banks reported that demand the May 1979 LPS survey. More than 50 percent had eased. of banks reported stronger demand, well above As in the previous two surveys, the number the proportion that had expected stronger loan of banks reporting more stringent criteria to growth three months earlier. This strengthening qualify for the prime rate exceeded the number developed in the context of generally strong that had eased standards of creditworthiness. demand for short- and intermediate-term busi- Consistent with this attitude, and with the strong ness credit in the second quarter, associated with upward pressure being exerted on the prime rate the need to finance a sharp increase in business by rapidly rising short-term rates, the weightedinventories. average interest rate on business loans made Loan demand strengthened despite a continu- above prime rose sharply relative to the prime ation of the unusually large spread between the at both groups of STBL reporters.15 Also, the prime rate and commercial paper rates. The evidence in the two previous LPSs that banks significance of this spread to borrowers ap- were easing compensating-balance requirements parently again was mitigated by some—mostly had disappeared by August. large—banks that reported easing policies re- The proportion of short-term loans made garding compensating balances. Moreover, al- below the prime rate in August remained at though the number of banks that reported tight- about the sharply increased level reached earlier ening standards to qualify for the prime rate and in the year. The continued high proportion of for a spread above the prime rate exceeded the loans made below prime, even after short-term number reporting an easing—as in the previous market rates returned to a more typical alignsurvey—the average rate on short-term loans ment with the prime rate, suggests that large made above the prime rate at the 48 large STBL banks continued to respond to substantial comreporters nevertheless was about unchanged rel- petition in the market to supply the credit needs ative to the prime. of very large borrowers. • The spread between the prime rate and the commercial paper rate narrowed substantially 15. The prevailing prime rate was increased 1/4 during the three months ending with the August percentage point to 12 percent on August 16. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Bank Lending Practices 805 APPENDIX TABLES16 Al. Changes in bank lending practices, selected large U.S. banks Policy on February 15, 1977, compared with policy three months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Item Total Much Moderately Essentially Moderately Much stronger stronger unchanged weaker weaker Strength of demand for commercial and industrial loans1 Compared with three months earlier 121 (100.0) 0 CO) 33 (27.3) 81 (66.9) 7 (5.8) 0 (.0) Anticipated in next three months 121 (100.0) 1 (.8) 67 (55.4) 52 (43.0) 1 (.8) 0 (.0) Total Much firmer Moderately Essentially Moderately Much policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses Terms and conditions: Interest rates charged 121 (100.0) 1 (.8) 3 (2.5) 85 (70.3) 32 (26.4) 0 (.0) Compensating or supporting balances... . 121 (100.0) 0 (.0) 2 (L7) 95 (78.5) 24 (19.8) 0 (.0) Standards of creditworthiness 121 (100.0) 0 (.0) 3 (2.5) 118 (97.5) 0 (.0) 0 (.0) Maturity of term loans 121 (100.0) 0 (.0) 1 (.8) 91 (75.2) 29 (24.0) 0 (•0) Practice concerning review of credit lines or loan applications: Established customers 121 (100.0) 0 (.0) 1 (.8) 110 (90.9) 10 (8.3) 0 (.0) New customers 121 (100.0) 0 (.0) 3 (2.5) 109 (90.1) 9 (7.4) 0 (.0) Local service area customers 121 (100.0) 1 (.8) 0 (.0) 112 (92.6) 8 (6.6) 0 (.0) Nonlocal service area customers 121 (100.0) 1 (.8) 2 (1.7) 107 (88.4) 11 (9.1) 0 (.0) Factors relating to applicant2 Value as depositor or source of collateral Inten b d u e s d i n u e s s e s of the loan 1 1 2 2 1 1 ( ( 1 1 0 0 0 0 . . 0 0 ) ) 2 1 (L (. 7 8 ) ) 8 1 (6 ( . . 6 8 ) ) 1 9 1 8 5 ( ( 8 9 1 5 . . 0 1 ) ) 1 4 2 ( ( 9 3 . . 9 3 ) ) 0 1 ( ( . . 0 8 ) ) Loans to independent finance companies 3 Terms and conditions Interest rates charged 121 (100.0) 1 (.8) 0 (.0) 106 (87.6) 14 (11.6) 0 (.0) Compensating or supporting balances... . 121 (100.0) 1 (.8) 1 (.8) 112 (92.6) 7 (5.8) 0 (.0) Enforcement of balance requirements.... 121 (100.0) 1 (.8) 3 (2.5) 112 (92.6) 5 (4.1) 0 (.0) Establishing new or larger credit lines... . 121 (100.0) 2 (1.7) 4 (3.3) 103 (85.1) 12 (9.9) 0 (.0) Total Considerably Moderately Essentially Moderately Considerably less willing less willing unchanged more willing more willing Willingness to make other types of loans Term loans to businesses 121 (100.0) 1 (.8) 0 (.0) 76 (62.8) 42 (34.7) 2 (L7) Consumer installment loans 120 (100.0) 0 (.0) 0 (.0) 91 (75.8) 26 (21.7) 3 (2.5) Single-family mortgage loans 120 (100.0) 1 (.8) 1 (.8) 91 (75.9) 26 (21.7) 1 (.8) Multifamily mortgage loans 118 (100.0) 3 (2.5) 2 (1.7) 105 (89.0) 8 (6.8) 0 (.0) All other mortgage loans 120 (100.0) 3 ((22..55)) 1 ((..88)) 101 ((8844..22)) 15 ((1122..55)) 0 (.0) Participation loans with correspondent banks 121 (100.0) 0 (.0) 1 (.8) 99 (81.9) 20 (16.5) 1 (.8) Loans to brokers i 121 (100.0) 1 (.8) 1 (.8) 105 (86.8) 11 (9.1) 3 (2.5) 1. After allowance for bank's usual seasonal variation. 3. Independent, or noncaptive, finance companies are finance 2. For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying installment and easier means they were considered to be less important. loans generated through the sale of the parent company's products. 16. Data in these tables are available on request, approximately four weeks after the survey date, from the Banking Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

806 Federal Reserve Bulletin • November 1979 A2. Changes in bank lending practices, selected large U.S. banks Policy on May 15, 1977, compared with policy three months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Item Total Much Moderately Essentially Moderately Much stronger stronger unchanged weaker weaker Strength of demand for commercial and industrial loans1 Compared with three months earlier 121 (100.0) 1 (.8) 61 (50.4) 57 (47.1) 2 (1.7) 0 (.0) Anticipated in next three months 120 (100.0) 1 (.8) 81 (67.5) 36 (30.0) 2 (1.7) 0 (.0) Total Much firmer Moderately Essentially Moderately Much policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses Terms and conditions: Interest rates charged 121 (100.0) 0 (.0) 25 (20.7) 77 (63.6) 19 (15.7) 0 (.0) Compensating or supporting balances.... 121 (100.0) 0 (.0) 3 (2.5) 99 (81.8) 18 (14.9) 1 (.8) Standards of creditworthiness 121 (100.0) 0 (.0) 3 (2.5) 115 (95.0) 3 (2.5) 0 (.0) Maturity of term loans 121 (100.0) 0 (.0) 2 (1.7) 96 (79.3) 20 (16.5) 3 (2.5) Practice concerning review of credit lines or loan applications: Established customers 121 (100.0) 0 (.0) 0 (.0) 110 (90.9) 10 (8.3) 1 (.8) New customers 121 (100.0) 1 (.8) 3 (2.5) 105 (86.8) 11 (9.1) 1 (.8) Local service area customers 121 (100.0) 0 (.0) 0 (.0) 113 (93.4) 7 (5.8) 1 (.8) Nonlocal service area customers 121 (100.0) 1 (.8) 5 (4.1) 108 (89.3) 6 (5.0) 1 (.8) Factors relating to applicant2 Value as depositor or source of collateral business 121 (100.0) 1 (.8) 9 (7.4) 106 (87.7) 4 (3.3) 1 (.8) Intended use of the loan 121 (100.0) 2 (1.7) 2 (1.7) 116 (95.8) 1 (.8) 0 (.0) Loans to independent finance companies 3 Terms and conditions Interest rates charged 121 (100.0) 1 (.8) 9 (7.4) 108 (89.3) 3 (2.5) 0 (.0) Compensating or supporting balances.... 121 (100.0) 1 (.8) 0 (.0) 115 (95.1) 5 (4.1) 0 (.0) Enforcement of balance requirements.... 121 (100.0) 1 (.8) 2 (1.7) 116 (95.8) 2 (1.7) 0 (.0) Establishing new or larger credit lines 121 (100.0) 1 (.8) 3 (2.5) 104 (86.0) 13 (10.7) 0 (.0) Total Considerably Moderately Essentially Moderately Considerably less willing less willing unchanged more willing more willing Willingness to make other types of loans Term loans to businesses 121 (100.0) 0 (.0) 2 (1.7) 81 (66.9) 35 (28.9) 3 (2.5) Consumer installment loans 120 (100.0) 0 (.0) 1 (.8) 88 (73.4) 28 (23.3) 3 (2.5) Single-family mortgage loans 120 (100.0) 0 (.0) 2 (1.7) 89 (74.1) 23 (19.2) 6 (5.0) Multifamily mortgage loans 119 (100.0) 0 (.0) 3 (2.5) 111 (93.3) 5 (4.2) 0 (.0) All other mortgage loans 120 ((110000..00)) 0 ((..00)) 2 ((11..77)) 104 (86.6) 14 (11.7) 0 ((..00)) Participation loans with correspondent banks 121 (100.0) 1 (.8) 0 (.0) 103 (85.2) 17 (14.0) 0 (.0) Loans to brokers 121 (100.0) 1 (.8) 4 (3.3) 96 (79.4) 17 (14.0) 3 (2.5) 1. After allowance for bank's usual seasonal variation. 3. Independent, or noncaptive, finance companies are finance 2. For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying installment and easier means they were considered to be less important. loans generated through the sale of the parent company's products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Bank Lending Practices 807 A3. Changes in bank lending practices, selected large U.S. banks Policy on August 15, 1977, compared with policy three months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Item Total Much Moderately Essentially Moderately Much stronger stronger unchanged weaker weaker Strength of demand for commercial and industrial loans1 Compared with three months earlier 121 (100.0) 1 (.8) 54 (44.6) 59 (48.8) 7 (5.8) 0 (.0) Anticipated in next three months 121 (100.0) 1 (.8) 66 (54.5) 54 (44.7) 0 (.0) 0 (.0) Total Much firmer Moderately Essentially Moderately Much policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses Terms and conditions: Interest rates charged 121 (100.0) 1 (.8) 21 (17.4) 87 (71.9) 12 (9.9) 0 (.0) Compensating or supporting balances.... 121 (100.0) 1 (.8) 6 (5.0) 98 (81.0) 16 (13.2) 0 (.0) S M ta a n tu d r a i r ty d s o o f f te c r r m ed i l t o w a o n r s t hiness 1 1 2 2 1 1 ( ( 1 1 0 0 0 0 . . 0 0 ) ) 1 1 ( ( . . 8 8 ) ) 2 5 ( ( 1 4 . .1 7 ) ) 1 9 1 9 6 ( (9 8 5 1 . . 8 9 ) ) 1 2 5 (1 ( 2 1 . . 4 7 ) ) 0 1 ( ( . . 8 0 ) ) Practice concerning review of credit lines or loan applications: Established customers 121 (100.0) 0 (.0) 1 (.8) 116 (95.9) 4 (3.3) 0 (.0) New customers 121 (100.0) 0 (.0) 8 (6.6) 109 (90.1) 4 (3.3) 0 (.0) Local service area customers 121 (100.0) 1 (.8) 0 (.0) 114 (94.2) 6 (5.0) 0 (.0) Nonlocal service area customers 121 (100.0) 0 (.0) 11 (9.1) 102 (84.3) 7 (5.8) 1 (.8) Factors relating to applicant2 Value as depositor or source of collateral business 121 (100.0) 0 (.0) 11 (9.1) 105 (86.8) 5 (4.1) 0 (.0) Intended use of the loan 121 (100.0) 0 (.0) 1 (.8) 120 (99.2) 0 (.0) 0 (.0) Loans to independent finance companies 3 Terms and conditions Interest rates charged 121 (100.0) 1 (.8) 8 (6.6) 110 (90.9) 2 (1.7) 0 (.0) Compensating or supporting balances... . 121 (100.0) 0 (.0) 3 (2.5) 115 (95.0) 2 (1.7) 1 (.8) Enforcement of balance requirements. . . . 121 (100.0) 0 (.0) 7 (5.8) 110 (90.9) 3 (2.5) 1 (.8) Establishing new or larger credit lines 121 (100.0) 1 (.8) 2 (1.7) 115 (95.0) 3 (2.5) 0 (.0) Total Considerably Moderately Essentially Moderately Considerably less willing less willing unchanged more willing more willing Willingness to make other types of loans Term loans to businesses 121 (100.0) 0 (.0) 3 (2.5) 96 (79.3) 22 (18.2) 0 (.0) Consumer installment loans 120 (100.0) 0 (.0) 1 (.8) 102 (85.0) 17 (14.2) 0 (.0) Single-family mortgage loans 120 (100.0) 0 (.0) 5 (4.2) 95 (79.1) 17 (14.2) 3 (2.5) Multifamily mortgage loans 119 (100.0) 0 (.0) 5 (4.2) 110 (92.5) 3 (2.5) 1 (.8) All other mortgage loans 120 (100.0) 0 (.0) 4 (3.3) 105 (87.6) 10 (8.3) 1 (.8) Participation loans with correspondent banks 121 (100.0) 1 (.8) 0 (.0) 106 (87.7) 13 (10.7) 1 (.8) Loans to brokers 121 (100.0) 1 08) 8 (6.6) 102 (84.4) 9 (7.4) 1 (.8) 1. After allowance for bank's usual seasonal variation. 3. Independent, or noncaptive, finance companies are finance 2. For these factors, firmer means the factors were considered to be companies other than those organized by, a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying installment and easier means they were considered to be less important. loans generated through the sale of the parent company's products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

808 Federal Reserve Bulletin • November 1979 A4. Changes in bank lending practices, selected large U.S. banks Policy on November 15, 1977, compared with policy three months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting ! Item Total Much j Moderately Essentially Moderately Much stronger stronger j unchanged ! weaker i weaker i Strength of demand for commercial and industrial loans1 Compared with three months earlier 121 (100.0) 0 (.0) 47 (38.8) 1 69 (57.1) 5 (4.1) 0 (.0) Anticipated in next three months 121 (100.0) : 0 (.0) 54 (44.6) 66 (54.6) 1 (.8) 0 (.0) Total | Much firmer Moderately Essentially Moderately Much ! policy firmer policy unchanged easier policy easier policy I j Loans to nonfinancial businesses Terms and conditions: Interest rates charged 121 (100.0) 3 (2.5) 36 (29.8) 66 (54.5) 16 (13.2) 0 (.0) Compensating or supporting balances... . 121 (loo.o) i 1 (.8) ! 13 (10.7) 85 (70.3) 1 22 (18.2) 0 (.0) Standards of creditworthiness 121 (100.0) , 2 (1.7) 1 (.8) 116 (95.8) ! 2 (1.7) 0 (.0) Maturity of term loans 121 (100.0) , 1 (.8) 1 4 (3.3) 102 (84.3) 14 (11.6) 0 (.0) Practice concerning review of credit lines or loan applications: i Established customers 121 (100.0) 1 0 (.0) 4 (3.3) i 114 (94.2) 3 (2.5) 0 (.0) New customers 121 (100.0) 2 (1.7) 1 6 (5.0) 107 (88.3) i 6 (5.0) , 0 (.0) Local service area customers 121 (100.0) i 0 (.0) 4 (3.3) 112 (92.6) 5 (4.1) 0 (.0) Nonlocal service area customers 121 (100.0) 2 (1.7) 9 (7.4) 105 (86.8) j 5 (4.1) 0 (.0) Factors relating to applicant2 Va b lu u e s i a n s e s d s epositor or source of collateral 121 (100.0) 2 (1.7) 11 (9.1) 105 (86.8) i i 3 (2.5) 0 (.0) Intended use of the loan 121 (100.0) T (.8) 4 (3.3) 115 (95.1) 1 1 (.8) | 0 (.0) hoars to independent finance companies3 Terms and conditions Interest rates charged 121 (100.0) 2 (1.7) 9 (7.4) 106 (87.6) 4 (3.3) 0 (.0) Compensating or supporting balances... . 121 (100.0) 0 (.0) 2 (1.7) 114 (94.2) 5 (4.1) 0 (.0) Enforcement of balance requirements. . . . 121 (100.0) 2 (1.7) 1 (.8) 115 (95.0) 3 (2.5) 0 (.0) Establishing new or larger credit lines... . 121 (100.0) 2 (1.7) 4 (3.3) 108 (89.2) 7 (5.8) 0 (.0) Total Considerably Moderately Essentially Moderately Considerably less willing less willing unchanged more willing more willing Willingness to make other types of loans ! Term loans to businesses 121 (100.0) I 1 (.8) 8 (6.6) 92 (76.1) i 20 (16.5) 0 (.0) C Si o n n g s l u e- m fa e m r i i l n y st m al o l r m tg e a n g t e lo lo a a n n s s 1 12 2 0 0 ( ( 1 1 0 0 0 0 . . 0 0 ) ) ! i 0 o ( ( . . 0 0 ) ) 2 3 ( ( 1 2 . . 7 5 ) ) 1 10 0 1 2 ( ( 8 8 5 4. . 1 0 ) ) i 1 1 7 4 ( ( 1 1 1 4 . .2 7 ) ) ! 1 0 ( ( . . 8 0 ) ) Multifamily mortgage loans 118 (100.0) ! 0 (.0) ! 3 (2.5) 110 (93.3) 4 (3.4) 1 (.8) P A a ll r t o ic th ip e a r ti m on o rtg l a o g a e n s l oa w ns i th correspondent 120 (100.0) 1 I 0 (.0) ! i 2 (1.7) 105 (87.5) i i 13 (10.8) 0 (.0) banks 120 (100.0) 1 0 (.0) 3 (2.5) 103 (85.9) | 13 (10.8) 1 (.8) Loans to brokers 120 (100.0) 2 (1.7) 7 (5.8) 103 (85.8) 8 (6.7) 0 (.0) 1. After allowance for bank's usual seasonal variation. 3. Independent, or noncaptive, finance companies are finance 2. For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying installment and easier means they were considered to be less important. loans generated through the sale of the parent company's products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Bank Lending Practices 809 A5. Senior loan officer opinion survey on bank lending practices, selected large U.S. banks Policy on February 15, 1978, compared with policy three months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Total Much Moderately Essentially Moderately Much Item stronger stronger unchanged easier easier LOAN DEMAND Strength of demand for commercial and industrial loans1 1 Compared with three months earlier... . 121 (100) (1.7) 38 (31.5) 77 (63.7) (3.4) (.0) 2 Anticipated in next three months 121 (100) (.9) 67 (55.4) 51 (42.2) (1.7) (.0) Total Much Moderately Essentially Moderately Much IINNTTEERREESSTT RRAATTEE PPOOLLIICCYY firmer firmer unchanged easier easier SSttaannddaarrddss ooff ccrreeddiittwwoorrtthhiinneessss 33 TToo qquuaalliiffyy ffoorr pprriimmee rraattee 112200 ((110000)) 11 ((..99)) 55 ((44..22)) 110099 ((9900..99)) 55 ((44..22)) 00 ((..00)) 4444 TTTToooo qqqquuuuaaaalllliiiiffffyyyy ffffoooorrrr sssspppprrrreeeeaaaadddd aaaabbbboooovvvveeee pppprrrriiiimmmmeeee 112211 ((110000)) 11 ((..99)) 1144 ((1111..66)) 9900 ((7744..44)) 1166 ((1133..33)) 00 ((..00)) Total Considerably Moderately Essentially Moderately Much greater greater unchanged less less WWWWiiiilllllllliiiinnnnggggnnnneeeessssssss ttttoooo mmmmaaaakkkkeeee ffffiiiixxxxeeeedddd----rrrraaaatttteeee llllooooaaaannnnssss 5555 SSSShhhhoooorrrrtttt----tttteeeerrrrmmmm ((((uuuunnnnddddeeeerrrr oooonnnneeee yyyyeeeeaaaarrrr)))) 121 (100) 0 (.0) 18 (14.9) 95 (78.6) 7 (5.8) 1 (.9) 6666 LLLLoooonnnngggg----tttteeeerrrrmmmm ((((oooonnnneeee yyyyeeeeaaaarrrr oooorrrr lllloooonnnnggggeeeerrrr)))) 121 (100) 1 (.9) 22 (18.2) 68 (56.2) 26 (21.5) 4 (3.4) Total Much Moderately Essentially Moderately Much CCCCRRRREEEEDDDDIIIITTTT AAAAVVVVAAAAIIIILLLLAAAABBBBIIIILLLLIIIITTTTYYYY firmer firmer unchanged easier easier AAAANNNNDDDD NNNNOOOONNNNPPPPRRRRIIIICCCCEEEE TTTTEEEERRRRMMMMSSSS Reviewing credit lines or loan applications for 7 Established customers 121 (100) 0 (.0) 2 (1.7) 117 (96.7) 2 (1.7) 0 (.0) 8 New customers 120 (100) 1 (.9) 13 (10.9) 98 (81.7) 8 (6.7) 0 (.0) 1 9 0 N Lo o c n a l l o c s a e l r v s i e c r e v a ic r e e a a r c e u a s t c o u m st e o r m s ers 1 11 2 9 0 ( (1 1 0 0 0 0 ) ) 01 ( ( . . 0 9 ) ) 1 6 3 (1 ( 1 5 . . 0 0 ) ) 1 1 0 1 1 0 ( ( 9 8 1 4 . . 7 9 ) ) 4 4 ( ( 3 3 . . 4 4 ) ) 0 0 ( (. . 0 0 ) ) Compensating balance requirements 11 Commercial and industrial loans 121 (100) 0 (.0) 15 (12.4) 79 (65.3) 27 (22.4) 0 (.0) 12 Loans to finance companies 121 (100) 1 (.9) 5 (4.2) 109 (90.1) 6 (5.0) 0 (.0) Total Considerably Moderately Essentially Moderately Much greater greater unchanged less less Willingness to make other types of loans 13 Secured construction and land development loans 121 (100) 0 (.0) 14 (11.6) 95 (78.6) 12 (10.0) 0 (.0) Secured real estate loans 14 1- to 4-family residential properties. . 120 (100) 2 (1.7) 10 (8.4) 98 (81.7) 9 (7.5) 1 (.9) 15 Multifamily residential property 117 (100) 0 (.0) 3 (2.6) 109 (93.2) 3 (2.6) 2 (1.8) 16 Commercial and industrial property. 121 (100) 0 (.0) 6 (5.0) 108 (89.3) 7 (5.8) 0 (.0) 17 Installment loans to individuals 120 (100) 0 (.0) 16 (13.4) 101 (84.2) 3 (2.5) 0 (.0) Commercial and industrial loans 18 One to five years maturity 121 (100) 0 (.0) 14 (11.6) 101 (83.5) 5 (4.2) 1 (.9) 19 Over five years maturity 121 (100) 0 (.0) 11 (9.1) 92 (76.1) 15 (12.4) 3 (2.5) 20 Loans to finance companies 121 (100) 0 (.0) 3 (2.5) 112 (92.6) 5 (4.2) 1 (.9) 21 Loans to securities brokers and dealers. 120 (100) 1 (.9) 8 (6.7) 101 (84.2) 9 (7.5) 1 (.9) 22 Participation loans with correspondent banks 120 (100) 0 (.0) 14 (11.7) 104 (86.7) 2 (1.7) 0 (.0) 1. After allowance for bank's usual seasonal variation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

810 Federal Reserve Bulletin • November 1979 A6. Senior loan officer opinion survey on bank lending practices, selected large U.S. banks Policy on May 15, 1978, compared with policy three months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Item Total Much Moderately Essentially Moderately Much stronger stronger unchanged easier easier LOAN DEMAND Strength of demand for commercial and industrial loans1 1 Compared with three months earlier 121 (100) (6.7) 85 (70.3) 27 (22.4) (.9) (.0) 2 Anticipated in next three months 121 (100) (4.2) 82 (67.8) 33 (27.3) (-9) (.0) Total Much Moderately Essentially Moderately Much INTEREST RATE POLICY firmer firmer unchanged easier easier Standards of creditworthiness 3 To qualify for prime rate 120 (100) 3 (2.5) 9 (7.5) 107 (89.2) 0 (.0) 1 (-9) 4 To qualify for spread above prime. 121 (100) 4 (3.4) 18 (14.9) 93 (76.9) 6 (5.0) 0 (.0) Total Considerably Moderately Essentially Moderately Much greater greater unchanged less less Willingness to make fixed-rate loans 5 Short-term (under one year) 120 (100) 0 (.0) 8 (6.7) 97 (80.9) 15 (12.5) 0 (.0) 6 Long-term (one year or longer) 120 (100) 0 (.0) 11 (9.2) 67 (55.9) 35 (29.2) 7 (5.9) Total Much Moderately Essentially Moderately Much CREDIT AVAILABILITY firmer firmer unchanged easier easier AND NONPRICE TERMS Reviewing credit lines or loan applications for 7 Established customers 121 (100) 0 (.0) 3 (2.5) 117 (96.7) 1 (.9) 0 (.0) 8 New customers 121 (100) 3 (2.5) 21 (17.4) 95 (78.6) 2 (1.7) 0 (.0) 9 Local service area customers 120 (100) 0 (.0) 4 (3.4) 114 (95.0) 2 (1.7) 0 (.0) 10 Nonlocal service area customers 120 (100) 4 (3.4) 20 (16.7) 96 (80.0) 0 (.0) 0 (.0) Compensating balance requirements 11 Commercial and industrial loans 121 (100) 2 (1.7) 23 (19.1) 87 (72.0) 9 (7.5) 0 (.0) 12 Loans to finance companies 121 (100) 2 (1.7) 17 (14.1) 99 (81.9) 3 (2.5) 0 (.0) Total Considerably Moderately Essentially Moderately Much greater greater unchanged less less Willingness to make other types of loans 13 Secured construction and land development loans 121 (100) 0 (.0) 10 (8.3) 97 (80.2) 14 (11.6) 0 (.0) Secured real estate loans 14 1- to 4-family residential properties .. 120 (100) 0 (.0) 10 (8.4) 95 (79.2) 12 (10.0) 3 (2.5) 15 Multifamily residential property 118 (100) 0 (.0) 0 (.0) 107 (90.7) 10 (8.5) 1 (.9) 16 Commercial and industrial property. 120 (100) 0 (.0) 5 (4.2) 99 (82.5) 13 (10.9) 3 (2.5) 17 Installment loans to individuals 120 (100) 3 (2.5) 7 (5.9) 107 (89.2) 3 (2.5) 0 (.0) Commercial and industrial loans 18 One to five years maturity 121 (100) 0 (.0) 6 (5.0) 108 (89.3) 7 (5.8) 0 (.0) 19 Over five years maturity 121 (100) 0 (.0) 6 (5.0) 90 (74.4) 20 (16.6) 5 (4.2) 20 Loans to finance companies 121 (100) 0 (.0) 0 (.0) 107 (88.5) 13 (10.8) 1 ( .9) 21 Loans to securities brokers and dealers. 120 (100) 0 (.0) 5 (4.2) 89 (74.2) 23 (19.2) 3 (2.5) 22 Participation loans with correspondent banks 121 (100) 0 (.0) 11 (9.1) 106 (87.7) 4 (3.4) 0 (.0) 1. After allowance for bank's usual seasonal variation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Bank Lending Practices 811 A7. Senior loan officer opinion survey on bank lending practices, selected large U.S. banks Policy on August 15, 1978, compared with policy three months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Total Much Moderately Essentially Moderately Much Item stronger stronger unchanged easier easier LOAN DEMAND Strength of demand for commercial and industrial loans1 1 Compared with three months earlier 121 (100) (3.4) 57 (47.2) 53 (43.9) (5.8) (.0) 2 Anticipated in next three months 121 (100) (1.7) 59 (48.8) 59 (48.8) (.9) (.0) Total Much Moderately Essentially Moderately Much INTEREST RATE POLICY firmer firmer unchanged easier easier Standards of creditworthiness 3 To qualify for prime rate 120 (100) 0 (.0) 12 (10.0) 106 (88.4) 2 (1.7) 0 (.0) 4 To qualify for spread above prime. 121 (100) 0 (.0) 28 (23.2) 88 (72.8) 5 (4.2) 0 (.0) Total Considerably Moderately Essentially Moderately Much greater greater unchanged less less Willingness to make fixed-rate loans 5 Short-term (under one year) 121 (100) 0 (.0) 6 (5.0) 99 (81.9) 13 (10.8) 3 (2.5) 6 Long-term (one year or longer) 121 (100) 0 (.0) 8 (6.7) 78 (62.9) 26 (21.5) 11 (9.1) Total Much Moderately Essentially Moderately Much CREDIT AVAILABILITY firmer firmer unchanged easier easier AND NONPRICE TERMS Reviewing credit lines or loan applications for 7 Established customers 121 (100) 0 (.0) 4 (3.4) 115 (95.1) 2 (1.7) 0 (.0) 8 New customers 121 (100) 1 (-9) 20 (16.6) 96 (79.4) 4 (3.4) 0 (.0) 9 Local service area customers 120 (100) 0 (.0) 5 (4.2) 112 (93.4) 3 (2.5) 0 (.0) 10 Nonlocal service area customers 120 (100) 6 (5.0) 23 (19.2) 91 (75.9) 0 (.0) 0 (.0) Compensating balance requirements 11 Commercial and industrial loans 121 (100) 0 (.0) 26 (21.5) 88 (72.8) 7 (5.8) 0 (.0) 12 Loans to finance companies 121 (100) 1 (.9) 11 (9.1) 105 (86.8) 4 (3.4) 0 (.0) Total Considerably Moderately Essentially Moderately Much greater greater unchanged less less Willingness to make other types of loans 13 Secured construction and land development loans 121 (100) 0 (.0) 8 (6.7) 90 (74.4) 22 (18.2) 1 (.9) Secured real estate loans 14 1-to 4-family residential properties, 120 (100) 0 (.0) 7 (5.9) 92 (76.7) 16 (13.4) 5 (4.2) 15 Multifamily residential property.... 117 (100) 0 (.0) 1 (.9) 96 (82.1) 17 (14.6) 3 (2.6) 16 Commercial and industrial property 121 (100) 0 (.0) 6 (5.0) 98 (81.0) 17 (14.1) 0 (.0) 17 Installment loans to individuals 120 (100) 0 (.0) 7 (5.9) 109 (90.9) 4 (3.4) 0 (.0) Commercial and industrial loans 18 One to five years maturity 121 (100) 0 (.0) 2 (1.7) 111 (91.8) 8 (6.7) 0 (.0) 19 Over five years maturity 121 (100) 0 (.0) 4 (3.4) 97 (80.2) • 18 (14.9) 2 (1.7) 20 Loans to finance companies 121 (100) 0 (.0) 1 (.9) 111 (91.8) 9 (7.5) 0 (.0) 21 Loans to securities brokers and dealers. 120 (100) 0 (.0) 3 (2.5) 98 (81.7) 15 (12.5) 4 (3.4) 22 Participation loans with correspondent banks 121 (100) 1 (.9) 14 (11.6) 101 (83.5) 4 (3.4) 1 (.9) 1. After allowance for bank's usual seasonal variation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

812 Federal Reserve Bulletin • November 1979 A8. Senior loan officer opinion survey on bank lending practices, selected large U.S. banks Policy on November 15, 1978, compared with policy three months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Total Much Moderately Essentially Moderately Much Item stronger stronger unchanged easier easier LOAN DEMAND Strength of demand for commercial and industrial loans1 1 Compared with three months earlier.. . . 121 (100) (1.7) 52 (43.0) 57 (47.2) 9 (7.5) (.9) 2 Anticipated in next three months 121 (100) (4.2) 55 (45.5) 51 (42.2) 10 (8.3) (.0) Total Much Moderately Essentially Moderately Much INTEREST RATE POLICY firmer firmer unchanged easier easier Standards of creditworthiness 3 To qualify for prime rate 117 (100) 1 (.9) 28 (24.0) 88 (75.3) 0 (.0) 0 (.0) 4 To qualify for spread above prime. 120 (100) 5 (4.2) 34 (28.4) 78 (65.0) 3 (2.5) 0 (.0) Total Considerably Moderately Essentially Moderately Much greater greater unchanged less less Willingness to make fixed-rate loans 5 Short-term (under one year) 121 (100) 1 (-9) 1 (-9) 74 (61.2) 37 (30.6) 8 (6.7) 6 Long-term (one year or longer) 121 (100) 0 (.0) 8 (6.7) 57 (47.2) 38 (31.5) 18 (14.9) Total Much Moderately Essentially Moderately Much CREDIT AVAILABILITY firmer firmer unchanged easier easier AND NONPRICE TERMS Reviewing credit lines or loan applications for 7 Established customers 121 (100) 0 (.0) 12 (10.0) 107 (88.5) 2 (1.7) 0 (.0) 8 New customers 121 (100) 9 (7.5) 32 (26.5) 80 (66.2) 0 (.0) 0 (.0) 9 Local service area customers 120 (100) 1 (-9) 15 (12.5) 102 (85.0) 2 (1.7) 0 (.0) 10 Nonlocal service area customers 120 (100) 13 (10.9) 25 (20.9) 81 (67.5) 1 (.9) 0 (0) Compensating balance requirements 11 Commercial and industrial loans 121 (100) 2 (1.7) 31 (25.7) 85 (70.3) 3 (2.5) 0 (.0) 12 Loans to finance companies 121 (100) 1 (-9) 17 (14.1) 100 (82.7) 3 (2.5) 0 (.0) Total Considerably Moderately Essentially Moderately Much greater greater unchanged less less Willingness to make other types of loans 13 Secured construction and land development loans 121 (100) 0 (.0) 4 (3.4) 76 (62.9) 33 (27.3) 8 (6.7) Secured real estate loans 14 1- to 4-family residential properties. , 120 (100) 0 (.0) 3 (2.5) 82 (68.4) 27 (22.5) 8 (6.7) 15 Multifamily residential property 117 (100) 0 (.0) 0 (.0) 81 (69.3) 25 (21.4) 11 (9.5) 16 Commercial and industrial property. 121 (100) 0 (.0) 2 (1.7) 83 (68.6) 32 (26.5) 4 (3.4) 17 Installment loans to individuals 120 (100) 0 (.0) 2 (1.7) 108 (90.0) 9 (7.5) 1 (.9) Commercial and industrial loans 18 One to five years maturity 121 (100) 0 (.0) 3 (2.5) 100 (82.7) 14 (H.6) 4 (3.4) 19 Over five years maturity 121 (100) 0 (.0) 1 (-9) 86 (71.1) 26 (21.5) 8 (6.7) 20 Loans to finance companies 121 (100) 0 (.0) 0 (.0) 96 (79.4) 21 (17.4) 4 (3.4) 21 Loans to securities brokers and dealers. 121 (100) 0 (.0) 0 (.0) 97 (80.2) 17 (14.1) 7 (5.8) 22 Participation loans with correspondent banks 121 (100) 0 (.0) 8 (6.7) 99 (81.9) 12 (10.0) 2 (1.7) 1. After allowance for bank's usual seasonal variation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Bank Lending Practices 813 A9. Senior loan officer opinion survey on bank lending practices, selected large U.S. banks Policy on February 15, 1979, compared with policy three months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Total Much Moderately Essentially Moderately Much Item stronger stronger unchanged easier easier LLLLLLOOOOOOAAAAAANNNNNN DDDDDDEEEEEEMMMMMMAAAAAANNNNNNDDDDDD SSSSSSttttttrrrrrreeeeeennnnnnggggggtttttthhhhhh ooooooffffff ddddddeeeeeemmmmmmaaaaaannnnnndddddd ffffffoooooorrrrrr ccccccoooooommmmmmmmmmmmeeeeeerrrrrrcccccciiiiiiaaaaaallllll aaaaaannnnnndddddd iiiiiinnnnnndddddduuuuuussssssttttttrrrrrriiiiiiaaaaaallllll llllllooooooaaaaaannnnnnssssss111111 111111 CCCCCCoooooommmmmmppppppaaaaaarrrrrreeeeeedddddd wwwwwwiiiiiitttttthhhhhh tttttthhhhhhrrrrrreeeeeeeeeeee mmmmmmoooooonnnnnntttttthhhhhhssssss eeeeeeaaaaaarrrrrrlllllliiiiiieeeeeerrrrrr............ ............ 121 (100) 1 (.9) 20 (16.6) 75 (62.0) 23 (19.1) 2 (1.7) 222222 AAAAAAnnnnnnttttttiiiiiicccccciiiiiippppppaaaaaatttttteeeeeedddddd iiiiiinnnnnn nnnnnneeeeeexxxxxxtttttt tttttthhhhhhrrrrrreeeeeeeeeeee mmmmmmoooooonnnnnntttttthhhhhhssssss 121 (100) 1 (.9) 33 (27.3) 74 (61.2) 13 (10.8) 0 (.0) Total Much Moderately Essentially Moderately Much IIIIIINNNNNNTTTTTTEEEEEERRRRRREEEEEESSSSSSTTTTTT RRRRRRAAAAAATTTTTTEEEEEE PPPPPPOOOOOOLLLLLLIIIIIICCCCCCYYYYYY firmer firmer unchanged easier easier SSSSSSttttttaaaaaannnnnnddddddaaaaaarrrrrrddddddssssss ooooooffffff ccccccrrrrrreeeeeeddddddiiiiiittttttwwwwwwoooooorrrrrrtttttthhhhhhiiiiiinnnnnneeeeeessssssssssss 333333 TTTTTToooooo qqqqqquuuuuuaaaaaalllllliiiiiiffffffyyyyyy ffffffoooooorrrrrr pppppprrrrrriiiiiimmmmmmeeeeee rrrrrraaaaaatttttteeeeee 121 (100) 0 (.0) 15 (12.4) 97 (80.2) 9 (7.5) 0 (.0) 444444 TTTTTToooooo qqqqqquuuuuuaaaaaalllllliiiiiiffffffyyyyyy ffffffoooooorrrrrr sssssspppppprrrrrreeeeeeaaaaaadddddd aaaaaabbbbbboooooovvvvvveeeeee pppppprrrrrriiiiiimmmmmmeeeeee 121 (100) 1 (.9) 19 (15.8) 87 (72.0) 14 (11.6) 0 (.0) Total Considerably Moderately Essentially Moderately Much greater greater unchanged less less WWWWWWiiiiiilllllllllllliiiiiinnnnnnggggggnnnnnneeeeeessssssssssss ttttttoooooo mmmmmmaaaaaakkkkkkeeeeee ffffffiiiiiixxxxxxeeeeeedddddd------rrrrrraaaaaatttttteeeeee llllllooooooaaaaaannnnnnssssss 555555 SSSSSShhhhhhoooooorrrrrrtttttt------tttttteeeeeerrrrrrmmmmmm ((((((uuuuuunnnnnnddddddeeeeeerrrrrr oooooonnnnnneeeeee yyyyyyeeeeeeaaaaaarrrrrr)))))) 121 (100) 1 (.9) 10 (8.3) -94 (77.7) 15 (12.4) 1 (.9) 666666 LLLLLLoooooonnnnnngggggg------tttttteeeeeerrrrrrmmmmmm ((((((oooooonnnnnneeeeee yyyyyyeeeeeeaaaaaarrrrrr oooooorrrrrr lllllloooooonnnnnnggggggeeeeeerrrrrr)))))) 121 (100) 1 (.9) 17 (14.1) 81 (67.0) 15 (12.4) 7 (5.8) Total Much Moderately Essentially Moderately Much CCCCCCRRRRRREEEEEEDDDDDDIIIIIITTTTTT AAAAAAVVVVVVAAAAAAIIIIIILLLLLLAAAAAABBBBBBIIIIIILLLLLLIIIIIITTTTTTYYYYYY firmer firmer unchanged easier easier AAAAAANNNNNNDDDDDD NNNNNNOOOOOONNNNNNPPPPPPRRRRRRIIIIIICCCCCCEEEEEE TTTTTTEEEEEERRRRRRMMMMMMSSSSSS Reviewing credit lines or loan applications for 7 Established customers 121 (100) 0 (.0) 1 (.9) 117 (96.7) 3 (2.5) 0 (.0) 8 New customers 121 (100) 1 (.9) 16 (13.3) 99 (81.9) 5 (4.2) 0 (.0) 9 Local service area customers 121 (100) 0 (.0) 2 (1.7) 116 (95.9) 3 (2.5) 0 (.0) 10 Nonlocal service area customers 121 ((110000)) 3 ((22..55)) 20 ((1166..66)) 97 ((8800..22)) 1 ((..99)) 0 ((..00)) Compensating balance requirements 11 Commercial and industrial loans 121 (100) 0 (.0) 14 (11.6) 91 (75.3) 16 (13.3) 0 (.0) 12 Loans to finance companies 121 (100) 0 (.0) 8 (6.7) 103 (85.2) 10 (8.3) 0 (.0) Total Considerably Moderately Essentially Moderately Much greater greater unchanged less less Willingness to make other types of loans 13 Secured construction and land development loans 121 (100) 1 (.9) 7 (5.8) 91 (75.3) 21 (17.4) 1 (.9) Secured real estate loans 14 1- to 4-family residential properties., 120 (100) 0 (.0) 4 (3.4) 93 (77.5) 20 (16.7) 3 (2.5) 15 Multifamily residential property 115 (100) 0 (.0) 0 (.0) 99 (86.1) 14 (12.2) 2 (1.8) 16 Commercial and industrial property. 121 (100) 0 (.0) 6 (5.0) 101 (83.5) 13 (10.8) 1 (.9) 17 Installment loans to individuals 121 (100) 0 (.0) 8 (6.7) 106 (87.7) 6 (5.0) 1 (.9) Commercial and industrial loans 18 One to five years maturity 121 (100) 1 (.9) 7 (5.8) 111 (91.8) 2 (1.7) 0 (.0) 19 Over five years maturity 121 (100) 0 (.0) 3 (2.5) 106 (87.7) 11 (9.1) 1 (.9) 20 Loans to finance companies 121 (100) 01 (.0) 1 (.9) 109 (90.1) 11 (9.1) 0 (.0) 21 Loans to securities brokers and dealers. 121 (100) (.9) 4 (3.4) 104 (86.0) 10 (8.3) 2 (1.7) 22 Participation loans with correspondent banks 121 (100) 0 (.0) 12 (10.0) 102 (84.3) 6 (5.0) 1 (.9) 1. After allowance for bank's usual seasonal variation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

814 Federal Reserve Bulletin • November 1979 A10. Senior loan officer opinion survey on bank lending practices, selected large U.S. banks Policy on May 15, 1979, compared with policy three months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Total Much Moderately Essentially Moderately Much Item stronger stronger unchanged easier easier LLLLLLOOOOOOAAAAAANNNNNN DDDDDDEEEEEEMMMMMMAAAAAANNNNNNDDDDDD SSSSSSttttttrrrrrreeeeeennnnnnggggggtttttthhhhhh ooooooffffff ddddddeeeeeemmmmmmaaaaaannnnnndddddd ffffffoooooorrrrrr ccccccoooooommmmmmmmmmmmeeeeeerrrrrrcccccciiiiiiaaaaaallllll aaaaaannnnnndddddd iiiiiinnnnnndddddduuuuuussssssttttttrrrrrriiiiiiaaaaaallllll llllllooooooaaaaaannnnnnssssss111111 111111 CCCCCCoooooommmmmmppppppaaaaaarrrrrreeeeeedddddd wwwwwwiiiiiitttttthhhhhh tttttthhhhhhrrrrrreeeeeeeeeeee mmmmmmoooooonnnnnntttttthhhhhhssssss eeeeeeaaaaaarrrrrrlllllliiiiiieeeeeerrrrrr........................ 121 (100) 5 (4.2) 63 (52.1) 44 (36.4) 8 (6.7) 1 (.9) 222222 AAAAAAnnnnnnttttttiiiiiicccccciiiiiippppppaaaaaatttttteeeeeedddddd iiiiiinnnnnn nnnnnneeeeeexxxxxxtttttt tttttthhhhhhrrrrrreeeeeeeeeeee mmmmmmoooooonnnnnntttttthhhhhhssssss 121 (100) 3 (2.5) 59 (48.8) 55 (45.5) 4 (3.4) 0 (.0) Total Much Moderately Essentially Moderately Much IIIIIINNNNNNTTTTTTEEEEEERRRRRREEEEEESSSSSSTTTTTT RRRRRRAAAAAATTTTTTEEEEEE PPPPPPOOOOOOLLLLLLIIIIIICCCCCCYYYYYY firmer firmer unchanged easier easier SSSSSSttttttaaaaaannnnnnddddddaaaaaarrrrrrddddddssssss ooooooffffff ccccccrrrrrreeeeeeddddddiiiiiittttttwwwwwwoooooorrrrrrtttttthhhhhhiiiiiinnnnnneeeeeessssssssssss 333333 TTTTTToooooo qqqqqquuuuuuaaaaaalllllliiiiiiffffffyyyyyy ffffffoooooorrrrrr pppppprrrrrriiiiiimmmmmmeeeeee rrrrrraaaaaatttttteeeeee 121 (100) 0 (.0) 14 (11.6) 103 (85.2) 4 (3.4) 0 (.0) 444444 TTTTTToooooo qqqqqquuuuuuaaaaaalllllliiiiiiffffffyyyyyy ffffffoooooorrrrrr sssssspppppprrrrrreeeeeeaaaaaadddddd aaaaaabbbbbboooooovvvvvveeeeee pppppprrrrrriiiiiimmmmmmeeeeee 121 (100) 0 (.0) 17 (14.1) 91 (75.3) 13 (10.8) 0 (.0) Total Considerably Moderately Essentially Moderately Much greater greater unchanged less less WWWWWWiiiiiilllllllllllliiiiiinnnnnnggggggnnnnnneeeeeessssssssssss ttttttoooooo mmmmmmaaaaaakkkkkkeeeeee ffffffiiiiiixxxxxxeeeeeedddddd------rrrrrraaaaaatttttteeeeee llllllooooooaaaaaannnnnnssssss 555555 SSSSSShhhhhhoooooorrrrrrtttttt------tttttteeeeeerrrrrrmmmmmm ((((((uuuuuunnnnnnddddddeeeeeerrrrrr oooooonnnnnneeeeee yyyyyyeeeeeeaaaaaarrrrrr)))))) 121 (100) 0 (.0) 16 (13.3) 90 (74.4) 11 (9.1) 4 (3.4) 666666 LLLLLLoooooonnnnnngggggg------tttttteeeeeerrrrrrmmmmmm ((((((oooooonnnnnneeeeee yyyyyyeeeeeeaaaaaarrrrrr oooooorrrrrr lllllloooooonnnnnnggggggeeeeeerrrrrr)))))) 121 (100) 1 (.9) 11 (9.1) 78 (64.5) 19 (15.8) 12 (10.0) Total Much Moderately Essentially Moderately Much CCCCCCRRRRRREEEEEEDDDDDDIIIIIITTTTTT AAAAAAVVVVVVAAAAAAIIIIIILLLLLLAAAAAABBBBBBIIIIIILLLLLLIIIIIITTTTTTYYYYYY firmer firmer unchanged easier easier AAAAAANNNNNNDDDDDD NNNNNNOOOOOONNNNNNPPPPPPRRRRRRIIIIIICCCCCCEEEEEE TTTTTTEEEEEERRRRRRMMMMMMSSSSSS Reviewing credit lines or loan applications jur 7 Established customers 121 (100) 0 (.0) 3 (2.5) 115 (95.1) 3 (2.5) 0 (.0) 8 New customers 121 (100) 1 (.9) 20 (16.6) 94 (77.7) 6 (5.0) 0 (.0) 9 Local service area customers 120 (100) 0 (.0) 9 (7-5) 105 (87.5) 6 (5.0) 0 (.0) 10 Nonlocal service area customers 120 (100) 5 (4.2) 23 (19.2) 88 (73.4) 4 ((33..44)) 0 ((..00)) Compensating balance requirements 11 Commercial and industrial loans 121 (100) 1 (.9) 12 (10.0) 87 (72.0) 21 (17.4) 0 (.0) 12 Loans to finance companies 121 (100) 0 (.0) 4 (3.4) 106 (87.7) 11 (9.1) 0 (.0) Total Considerably Moderately Essentially Moderately Much greater greater unchanged less less Willingness to make other types of loans 13 Secured construction and land development loans 121 (100) 0 (.0) 2 (1.7) 98 (81.0) 20 (16.6) 1 (.9) Secured real estate loans 14 1 - to 4-family residential properties . . 119 (100) 0 (.0) 1 (.9) 99 (83.2) 16 (13.5) 3 (2.6) 15 Multifamily residential property 117 (100) 0 (.0) 0 (-0) 92 (78.7) 18 (15.4) 7 (6.0) 16 Commercial and industrial property. . 121 (100) 0 (.0) 5 (4.2) 98 (81.0) 16 (13.3) 2 (1.7) 17 Installment loans to individuals 121 (100) 0 (.0) 6 (5.0) 104 (86.0) 11 (9.1) 0 (.0) Commercial and industrial loans 18 One to five years maturity 121 (100) 0 (.0) 6 (5.0) 109 (90.1) 6 (5.0) 0 (.0) 19 Over five years maturity 121 (100) 0 (.0) 3 (2.5) 97 (80.2) 19 (15.8) 2 (1.7) 20 Loans to finance companies 121 (100) 0 (.0) 1 (.9) 107 (88.5) 10 (8.3) 3 (2.5) 21 Loans to securities brokers and dealers. . 121 (100) 0 (.0) 4 (3.4) 104 (86.0) 9 (7.5) 4 (3.4) 22 Participation loans with correspondent banks 121 (100) 0 (.0) 9 (7.5) 105 (86.8) 5 (4.2) 2 (1.7) 1. After allowance for bank's usual seasonal variation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Bank Lending Practices 815 All. Senior loan officer opinion survey on bank lending practices, selected large U.S. banks Policy on August 15, 1979, compared with policy three months earlier Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Total Much Moderately Essentially Moderately Much Item stronger stronger unchanged easier easier LOAN DEMAND Strength of demand for commercial and industrial loans1 1 Compared with three months earlier.... 121 (100) (2.5) 52 (43.0) 60 (49.6) 6 (5.0) (.0) 2 Anticipated in next three months 121 (100) (.9) 38 (31.5) 71 (58.7) 11 (9.1) (.0) Total Much Moderately Essentially Moderately Much INTEREST RATE POLICY firmer firmer unchanged easier easier Standards of creditworthiness 3 To qualify for prime rate 121 (100) 1 (.9) 17 (14.1) 97 (80.2) 6 (5.0) 0 (.0) 4 To qualify for spread above prime. 121 (100) 2 (1.7) 15 (12.4) 92 (76.1) 12 (10.0) 0 (.0) Total Considerably Moderately Essentially Moderately Much greater greater unchanged less less Willingness to make fixed-rate loans 5 Short-term (under one year) 121 (100) 1 (.9) 7 (5.8) 100 (82.7) 10 (8.3) 3 (2.5) 6 Long-term (one year or longer) 121 (100) 3 (2.5) 12 (10.0) 81 (67.0) 20 (16.6) 5 (4.2) Total Much Moderately Essentially Moderately Much CREDIT AVAILABILITY firmer firmer unchanged easier easier AND NONPRICE TERMS Reviewing credit lines or loan applications for 7 Established customers 121 (100) 0 (.0) 4 (3.4) 115 (95.1) 2 (1.7) 0 (.0) 8 New customers 121 (100) 2 (1.7) 19 (15.8) 96 (79.4) 4 (3.4) 0 (.0) 9 Local service area customers 120 (100) 0 (.0) 5 (4.2) 111 (92.5) 4 (3.4) 0 (.0) 10 Nonlocal service area customers 120 (100) 3 (2.5) 23 (19.2) 91 (75.9) 3 (2.5) 0 (.0) Compensating balance requirements 11 Commercial and industrial loans 121 (100) 0 (.0) 14 (11.6) 94 (77.7) 13 (10.8) 0 (.0) 12 Loans to finance companies 121 (100) 1 (.9) 7 (5.8) 104 (86.0) 9 (7.5) 0 (.0) Total Considerably Moderately Essentially Moderately Much greater greater unchanged less less Willingness to make other types of loans 13 Secured construction and land development loans 121 (100) 0 (.0) 6 (5.0) 92 (76.1) 22 (18.2) 1 (.9) Secured real estate loans 14 1-to 4-family residential properties 120 (100) 0 (.0) 6 (5.0) 97 (80.9) 16 (13.4) 1 (.9) 15 Multifamily residential property 116 (100) 0 (.0) 1 (-9) 98 (84.5) 17 (14.7) 0 (.0) 16 Commercial and industrial property 121 (100) 0 (.0) 6 (5.0) 99 (81.9) 14 (11.6) 2 (1.7) 17 Installment loans to individuals 121 (100) 1 (.9) 3 (2.5) 104 (86.0) 12 (10.0) 1 (.9) Commercial and industrial loans 18 One to five years maturity 121 (100) 0 (.0) 9 (7.5) 108 (89.3) 4 (3.4) 0 (.0) 19 Over five years maturity 121 (100) 0 (.0) 5 (4.2) 96 (79.4) 19 (15.8) 1 (-9) 20 Loans to finance companies 121 (100) 0 (.0) 0 (.0) 112 (92.6) 9 (7.5) 0 (.0) 21 Loans to securities brokers and dealers 120 (100) 0 (.0) 4 (3.4) 103 (85.9) 11 (9.2) 2 (1.7) 22 Participation loans with correspondent banks 121 (100) 0 (.0) 6 (5.0) 104 (86.0) 10 (8.3) 1 (.9) 1. After allowance for bank's usual seasonal variation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

817 Industrial Production Released for publication October 16 advanced sharply but remained below its July level. Production of construction supplies was Industrial production increased an estimated 0.5 again about unchanged in September. percent in September, largely reflecting a re- Output of durable goods materials was pracbound in production of motor vehicles. The tically unchanged as the production of parts for index had declined 0.9 percent in August after equipment and consumer durable goods ingains of 0.1 percent in both June and July. At creased somewhat while output of basic metals, 152.3 percent of the 1967 average, the Sep- such as raw steel, declined further. Production tember index was 2.5 percent above the level of nondurable goods materials rose 0.4 percent. of a year earlier and 0.5 percent lower than its Output of energy materials declined slightly in recent high in March 1979. The index for the September as coal production was reduced. third quarter of 1979 was 0.2 percent above the second quarter and at the same level as the first Seasonally adjusted, ratio scale, 1967=100 180 quarter of 1979. Output of consumer durable goods rose 3.2 MATERIALS OUTPUT, percent in September, as auto assemblies—at an PRODUCTS OUTPUT annual rate of 7.9 million units—were about 5 percent higher than the sharply curtailed rate of MATERIALS: 7.5 million units in August. However, the September assembly rate was still well below the 8.9-million rate in the first half of the year. CONSUMER GOODS Output of home goods rose in September be- CONSUMER GOODS: cause of a pickup in production of appliances ^^ Durable^/ from their curtailed level in August. Output of ^^Nondurable consumer nondurable goods, mainly foods, increased. Production of business equipment Annual rate, millions of units increased 0.8 percent, reflecting an upturn in MANUFACTURING: Nondurable^, output of heavy trucks, a poststrike rebound in output of power equipment, and continued strength in commercial equipment. With production of business vehicles up from its low Federal Reserve indexes, seasonally adjusted. Latest figures: level in August, the output of transit equipment September. Auto sales and stocks include imports. 1967 == 100 Percentage change from preceding month to PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1979 1979 999///777888 tttooo Aug.p Sept/' Apr. May June July Aug. Sept. 999///777999 Total 151.5 152.3 -1.4 1.1 .1 .1 -.9 .5 2.5 Products, total 148.6 149.7 -1.6 1.3 -.1 -.2 -.9 .7 1.9 Final products 145.7 147.1 -1.9 1.7 -.1 -.1 -1.2 1.0 1.8 Consumer goods 148.4 149.9 -2.5 1.9 -.1 -.5 -1.8 1.0 -.6 Durable 147.5 152.2 -7.3 5.9 -1.2 -1.0 -6.1 3.2 -5.2 Nondurable 148.8 149.1 -.4 .5 .3 -.3 .1 .2 1.4 Business equipment 171.0 172.4 -1.2 1.6 . 1 -.1 -.2 .8 5.3 Intermediate products 159.4 159.4 -.4 -.1 0 -.1 .1 0 2.4 Construction supplies... 156.2 156.3 -.7 .3 -.1 .1 -.1 .1 1.8 Materials 156.0 156.2 -1.2 .8 .5 .4 -.8 .1 3.3 Digitized for FRASER p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

818 Statements to Congress Statement by Emmett J. Rice, Member, Board Although the Board has not adopted formal of Governors of the Federal Reserve System, regulations expressly pertaining to merchandise before the Subcommittee on Commerce, Con- promotions (and is not considering such regulasumer, and Monetary Affairs of the Committee tions at the present time), it has stated in a on Government Operations, U.S. House of Published Interpretation that a premium given Representatives, September 12, 1979. to a depositor (whether in cash or in merchandise) will not be considered an interest payment, provided the premium (1) is given only when It is a pleasure for me to make my first appear- a depositor opens or adds to an account, (2) ance before this subcommittee. I look forward is not given to any depositor on a recurring to working with you on our common problems basis, and (3) has a value (or a cost to the bank) and objectives. that does not exceed $5 ($10 for deposits of The purpose of today's meeting is to review $5,000 or more). When the Board last considsupervision of bank advertising practices by the ered these limitations, it recognized that such federal financial regulatory agencies. The testi- programs may benefit small savers whose monmony of the Board of Governors was solicited etary returns are limited by law. on issues dealing with merchandise promotions Regulation Q, which applies to all member and misleading or deceptive advertisements that banks of the Federal Reserve System, contains fail to disclose relevant information. provisions that govern advertisements, an- For many years the Board has been involved nouncements, or solicitations relating to interest under its statutory responsibilities with bank paid on deposits. This regulation includes a advertising. Regulation Q (Interest on Deposits) number of specific advertising rules—such as and Regulation Z (Truth in Lending) contain a requirements that interest rates be stated in terms number of provisions relating to bank advertis- of the annual rate of simple interest and that ing. These provisions are monitored and en- any time and amount requirements necessary to forced by the Board through consumer compli- earn an advertised rate be stated conspicuously. ance examinations conducted at all state mem- In addition, Regulation Q contains the general ber banks by System examiners. In addition, requirement that a member bank's adverthe Board has established procedures in Regu- tisements must not be inaccurate or misleading, lation AA (Unfair or Deceptive Acts or Prac- or otherwise misrepresent the bank's deposit tices) to act on individual complaints received contracts. by the Board or the Reserve Banks. Under its Truth in Lending authority, the With regard to merchandise promotions, the Board has issued rules regarding the advertising Board has taken the position that the question of credit terms and consumer leases. The reguas to whether a bank should be permitted to lation requires banks and other creditors who engage in either the sale or give-away of mer- advertise credit terms to make complete disclochandise is primarily the responsibility of the sure of related terms. The specific provisions institution's chartering authority. The Board's in Regulation Z are intended to ensure that principal concern with respect to such promo- consumers are not told one or two favorable tions has been to determine whether they result terms only to find out later, when they apply in the payment of additional interest to deposi- for the credit, that the overall terms may be a tors in violation of the Board's rules and limita- good deal less favorable than represented in an tions on the payment of interest on deposits. advertisement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 819 The Board and its staff are now reviewing found that complaints either are imprecise about other practices of banks that may be unfair or what the problem is or do not give all the facts. deceptive—practices that include but are not Recognizing these difficulties, the Board in limited to bank advertising. During this review, 1977 used another approach. Letters were sent a number of issues need to be explored to 400 state agencies and legal service organithoroughly, including the basic question as to zations, asking them to identify practices that, whether another new regulation is necessary or in their experience, were prevalent and that advisable at this time. Banks have had to absorb could be viewed as unfair or deceptive. After a large volume of burdensome and costly new a review of the responses (about 100) to this regulations in the last year, particularly under mailing, four practices were selected for further the Financial Institutions Regulatory and Inter- study: est Rate Control Act (FIRA), which created new 1. Failing to disclose to new depositors the laws governing electronic fund transfers, the contract terms governing use of their accounts right to financial privacy, insider transactions, or to give reasonable advance notification to and so forth. existing depositors of any change in contract The cost and burden of a complex regulatory terms. scheme, which will be borne ultimately by de- 2. Describing checking account services as positors and borrowers, must be weighed care- being "free" when there are charges for or fully against the perceived benefits to the public. preconditions to a depositor's actually receiving Before venturing further into the regulatory no-cost checking. morass, alternatives must be considered. We 3. Attaching, freezing, or closing a deposishould resist the temptation to reach all prob- tor's account without promptly notifying the lems by setting out detailed federal regulatory depositor. standards and should first seek to resolve these 4. Imposing, as a matter of policy, a longer matters through local efforts, industry self- waiting period than needed for operational reapolicing, general federal supervision, guide- sons before depositors can withdraw funds lines, and policy statements. We believe it deposited in the form of checks. would be preferable to try these measures before A survey was conducted in cooperation with considering the adoption of regulations that the Office of the Comptroller of the Currency could lead to our policing every bank promotion and the Federal Deposit Insurance Corporation and advertisement. to determine the prevalence of the four practices These issues were discussed by the Board's and to develop more information about the way Consumer Advisory Council last February at its in which they occur. A questionnaire was dequarterly meeting. There was general agreement veloped and incorporated into the three agenamong council members that some banking cies' regular consumer compliance examinapractices were troublesome—from misleading tions covering all banks examined during a use of the term 4'free checking" to failure to 90-day period in 1978. The agencies thus were make adequate disclosure of account terms to able to obtain a sample regarding these practices customers. Many council members—both con- at 846 financial institutions. The results of the sumers and creditors—were opposed to issuing survey were collected in a report that was pubnew regulations, however, and favored the al- lished by the Board earlier this year. The report ternative of guidelines or policy statements. has been delivered to this subcommittee. The Board has taken a number of different The survey results are instructive, although approaches in reviewing bank activities that may one must be cautious in drawing conclusions warrant further consideration as unfair or de- from them about the need for federal intervenceptive practices. First, the staff has been in- tion. For example, 84 percent of the banks structed to monitor consumer complaints re- explained all or some of their checking account ceived by the Board on a continuing basis. terms either orally or in writing to customers There are problems, however, with trying to upon the opening of an account. Similarly, reach any conclusions on the need for action about half the banks that advertise checking based on such complaints. Frequently, we have accounts used the term "free checking." In 58 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

820 Federal Reserve Bulletin • November 1979 percent of these, there were some conditions might include the simple and effective rates of attached. However, in the vast majority of interest, account charges and restrictions, and cases—90 percent—the conditions were speci- information relating to delayed funds availfically disclosed in the advertisement. ability. It should be noted that the part of the One of the other items that has been of major Electronic Fund Transfer Act that goes into interest relates to "delayed funds availability." effect in May 1980 includes requirements for This term refers to the practice of placing a detailed account disclosures as to electronic hold on consumers' check deposits for certain fund transfers made to or from a consumer's periods, to give the check time to clear the bank account. At present, there are no parallel reon which it is drawn, or to be returned unpaid. quirements as to check transactions involving The Bank Practices Survey found that only 38 the account. percent of banks surveyed will delay fund 2. Should banks be required to investigate, availability either because of the type of check within a reasonable time, a customer's allegaor because of the location of the bank on which tion that an error has been made by the bank. the check is drawn. 3. Should requirements regarding advertising Delayed availability can be a frustrating ex- be imposed in addition to those now contained perience for consumers. Yet any requirement in Regulation Q, with comparable requirements that availability delays reflect only "actual time for checking accounts. for clearing" also would present a difficult The Board has statutory authority under secproblem because of the varying times needed tion 18(f) of the Federal Trade Commission Act for dishonored checks to be returned to deposi- to prohibit unfair or deceptive acts or practices tors. The return time for unpaid items is unpre- engaged in by banks. This provision parallels dictable. Factors such as the location of the the Federal Trade Commission's power to depayor bank, or the nonmembership of a bank clare activities of businesses (other than banks in the Federal Reserve System, may signifi- and savings and loan associations) to be unfair cantly affect collections. The Board's staff is or deceptive, and therefore prohibited. now working with the Bank Administration In- Any rule issued by the Board under its secstitute on how to improve the timing for returned tion 18(f) authority would apply only to banks, items. If this process could be expedited, it although the Federal Home Loan Bank Board would eliminate the major reason for delayed has recently been granted similar authority for availability. savings and loan associations by a 1979 amend- The staff also is investigating a number of ment to the Federal Trade Commission Act. The alternatives regarding bank practices that may Board believes that whatever action may be warrant action and, if any action is thought to taken concerning bank practices should not be appropriate, regarding the form it might take. apply only to banks. There should be parallel The following are some of the areas under provisions applicable to other financial institustudy: tions—including credit unions and thrift institu- 1. Should banks be required to disclose in tions—to ensure competitive equality. The writing deposit terms and conditions at the time Board's Legal and Consumer Affairs Divisions an account is opened, and to disclose any sub- are consulting with their counterparts at the sequent changes that may be regarded as unfa- other financial regulatory agencies to ensure full vorable to the consumer. Items to be disclosed interagency coordination in this area. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 821 Statement by William H. Wallace, Staff Direc- the full benefit of such a coin could be realized tor for Federal Reserve Bank Activities, Board only if the public were convinced to change of Governors of the Federal Reserve System, longstanding habits in the use of currency and before the Subcommittee on Consumer Affairs coin. As a result, the Federal Reserve commisof the Committee on Banking, Finance and sioned a University of Michigan study in June Urban Affairs, U.S. House of Representatives, 1978 to analyze the market acceptance of the September 25, 1979. new coin. The Michigan study supports our conclusion that $1 notes must be withdrawn I am pleased to present the views of the Board from circulation for the new coin to achieve its of Governors of the Federal Reserve System on full potential. The results of this study were not the new Susan B. Anthony $1 coin. The Federal available, however, until December 1978, and Reserve supports the widespread use of the new by that time the congressional decision to issue $1 coin and the eventual elimination of the $1 the Susan B. Anthony coin had already been bill. made. On October 10, 1978, the President signed In February 1979, the Board sponsored a joint into law S. 3036, the Susan B. Anthony Dollar meeting of Treasury officials and Federal Re- Coin Act of 1978, authorizing the Secretary of serve Bank presidents to discuss the Treasury's the Treasury to replace the Eisenhower dollar circulation program for the Anthony dollar. At with the "Anthony dollar." Governor Cold well this meeting a number of the Reserve Bank of our Board stated in his testimony on May presidents expressed strong reservations about 17, 1978, before the House Subcommittee on the coin's eventual success, given the continued Historic Preservation and Coinage of the Com- unlimited availability of $1 notes. Nevertheless, mittee on Banking, Finance and Urban Affairs, the Federal Reserve agreed to support fully the that the Federal Reserve supported this legisla- Treasury Department's $1 coin circulation protion because of the substantial benefits that gram with the understanding that serious conwould accrue from substitution of the $1 coin sideration would be given to the elimination of for the $1 bill. the $1 note. Because of its superior durability, the Susan The Treasury specifically requested the par- B. Anthony dollar is six and a half times more ticipation of the Federal Reserve Board in encost effective to provide as a circulating medium gaging a media consultant to organize an eduthan a $1 note. In addition, Anthony dollars cational campaign for the new coin. Since the deposited with Federal Reserve Banks can be release of the coin on July 2, the Federal Reprocessed for recirculation ten times more effi- serve has made a concerted effort to assist the ciently than $1 bills. Considering these benefits, Treasury Department in informing the public the government could save the American tax- and promoting the new $1 coin. Press conferpayer $50 million per year by substituting the ences, television interviews, and other media $1 coin for the $1 note. Of this $50 million, events have been held in Federal Reserve Bank the comparative saving in production costs ac- cities both before and after the coin was issued counts for $34 million, and the remaining $16 on July 2. Further, the Reserve Banks have been million would result from a decrease in handling printing and distributing Susan B. Anthony inexpenses at the Reserve Banks. formation kits to the press, retailers, and com- At some time in the near future, it would be mercial banks. Additionally, DWJ Associates, reasonable to assume that $1 coins and $2 notes the media consultant under contract with the could effectively replace the existing pool of Federal Reserve, chosen through a competitive circulating $ 1 notes. If all existing $ 1 notes are process, has arranged media meetings for key replaced by equal proportions of $1 coins and Treasury and Federal Reserve representatives. $2 notes, then the government could still save These appearances, which began on August 1, $35 million annually in printing and handling are designed to increase awareness of the coin expenses for $1 notes. and thus improve its acceptance. DWJ Asso- Early in the consideration of a new smaller ciates has also prepared a videotape describing dollar coin, the Federal Reserve realized that the merits of the new $1 coin. To date, this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

822 Federal Reserve Bulletin • November 1979 videotape has been seen on 51 local television be safe to say that the new coin has already stations and is expected to be aired on an addi- benefited the American taxpayer based on its tional 100 stations. production cost compared with the Eisenhower The Susan B. Anthony $1 coin has been in dollar coin. Had the Eisenhower dollar contincirculation for nearly three months now, and ued to be produced, it would have cost the more than 275 million of the coins have been government $4 million more to satisfy annual shipped to commercial banks. The Federal Re- demand for $1 coins than it will cost to satisfy serve Banks are currently holding 176 million demand with the Susan B. Anthony dollar coin. coins in their inventories, and since the coin's The initial demand for the coin has been about release 4.6 million have been returned to the what we forecasted. We have therefore been Federal Reserve by commercial banks. It would disappointed by the instant analysis that has led many in the media to assume that the coin will Cost benefits of the Anthony dollar not be successful. This negativeness makes our job more difficult. Neither the Treasury nor the Amount Item (dollars unless Federal Reserve expected that the coin handling noted otherwise) habits of the American public would instantly COMPARISON WITH $1 NOTE change to adapt to a new coin. We have recog- Production cost Anthony dollar 03 nized from the start that the success or failure Average life (years) 15 Average annual cost ($.03 H- 15 years) 002 of this effort will be based on the usefulness $1 note 02 of the coin itself to the American people. Average life (years) 1.5 Average annual cost ($.02 -H 1.5 years) 013 Clearly, it will take more than these two and $1 notes in circulation 3.1 billion Annual cost of maintaining $1 notes in one-half months for that judgment to be made. circulation 40.3 million At the same time, we must do all we can Annual cost of maintaining $1 coins in circulation 6.2 million to assure the success of the new coin. Consid- Production cost savings ($40.3 million - $6.2 million) 34.1 million ering the recent experience with the $2 bill and Processing cost Currency processing cost per 1,000 notes 3.849 the widely held concern that market acceptance Coin processing cost per 1,000 pieces v 381 of the $1 coin may not materialize, one available Annual cost of processing $1 notes 17.7 million Annual cost of processing equivalent number option that a joint Treasury-Federal Reserve task of $1 coins 1.7 million Processing cost savings ($17.7 million — force has recently recommended would be to $1.7 million) 16 million develop a plan to systematically replace $ 1 notes Total cost per year Currency 58.0 million with $1 coins and $2 bills. Whatever future Less: coin 7.9 million Total savings 50.1 million steps are decided upon, the Federal Reserve believes that the potential significant cost sav- COMPARISON WITH EISENHOWER DOLLAR ings associated with substitution of a durable Annual demand for Eisenhower dollars 80 million coins Production cost of Eisenhower dollar 08 coin for paper money—such as that contem- Production cost of Anthony dollar 03 Net savings per coin ($.08 - $.03) 05 plated by issuance of the Susan B. Anthony Annual savings (80 million x $.05) 4 million dollar—should not be ignored. • Statement by Paul A. Volcker, Chairman, and equitable ground rules for financial institu- Board of Governors of the Federal Reserve tions competing in providing depositary services System, before the Committee on Banking, to the public. Housing and Urban Affairs, U.S. Senate, Sep- The issues involved are old ones. There have tember 26, 1979. been many proposals to deal with the so-called Federal Reserve membership problem and to I am pleased to testify on several bills designed restructure federal reserve requirements through to assure the capacity of the Federal Reserve the years, going back in my personal experience to conduct effective monetary policy over the on the Commission on Money and Credit 20 years ahead. Each of these bills aims to achieve years ago. The matter has been under active, that objective in a manner consistent with fair and sometimes contentious, consideration in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 823 Congress for more than three years, as the need broad coverage of competing depositary instituhas become more evident. Financial innova- tions and from a reserve base sufficient to suptions, shifting competitive patterns, strong in- port and transmit the effects of Federal Reserve flationary pressures, and related high interest monetary actions through the financial system. rates have all exacerbated existing competitive At the same time, we need to work toward inequities, have led to declines in membership evenhanded treatment of all depositary instituin the Federal Reserve, and ultimately will tions insofar as they compete directly and bear threaten our ability to conduct effective mone- a reserve burden. It is not only a matter of tary policy. fairness. Evenhanded treatment, including Now, it is time to act. Moreover, it is possible broader access to System services, rationally to act with a minimum of controversy and priced, can bring about greater efficiency and maximum effectiveness. more effective competition in financial markets. I reach that conclusion in large part because We should also assure that institutions bearing of the substantial progress that has been made the implicit cost of reserves do not gradually in the past year, through hearings and debate lose, for that reason, business to others, thus in the Congress and through discussions among narrowing the scope of Federal Reserve control. interested parties, in achieving a consensus on The manner in which reserves are applied is the essential elements of a solution. As I will the source of our present problem. Members of discuss later, that solution can be reached within the Federal Reserve System are currently subject acceptable limits of cost to the Treasury; indeed, to a special burden—from their point of view, failure to act would also cost revenues and in the equivalent of a special tax—because they cumulating amounts as attrition of Federal Re- must maintain substantial levels of reserves in serve membership continues. Those issues that non-interest-bearing balances at Federal Reserve remain are being addressed by virtually all par- Banks. Nonmember commercial banks or other ties in a constructive atmosphere, with aware- depositary institutions—even when their business of the central need to maintain a strong ness overlaps—have no comparable require- Federal Reserve, equipped with adequate tools ment. Member banks receive some offset to this to do its job. burden because of their access to System serv- It is my judgment, and that of many others, ices, but all studies indicate that the value of that only expeditious handling of this legislation these services is, for the bulk of members, not can forestall a new wave of withdrawals from sufficient to compensate for the earnings fore- Federal Reserve membership. Many banks un- gone on required sterile balances. In these cirderstandably have been willing to carry the cumstances, members leave the System, narburden of voluntary membership only so long rowing our base of control. as they felt that legislation providing more The specific bills before you, which have equitable competitive conditions could be fore- originated with members of this committee, seen. Failure to act now will not make the issue have different points of departure in dealing with go away; we would only be forced to return these issues. S. 85, proposed by Chairman to it in still more urgent, and potentially more Proxmire, would place mandatory reserve recontentious and divisive, circumstances. quirements on all depositary institutions, at the All the legislative proposals need to be judged same time opening access to Federal Reserve first of all against the central objective: We need services to all depositary institutions. S. 353, to strengthen our ability to implement monetary proposed by Senator Tower, would instead prepolicy in a variety of possible circum- serve a fully voluntary system, but would atstances—not just in the immediate future, but tempt to remove the burden of membership by for decades ahead. This legislation would pro- mandating that all balances held with the Fedvide the most important structural change in the eral Reserve to meet such requirements earn Federal Reserve since its foundation; once interest at nearly a market rate; access to System passed, it will not be lightly amended. As we services would remain restricted to members look ahead in that long perspective, effective and other depositary institutions voluntarily monetary control will significantly benefit from maintaining reserves. The legislation passed by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

824 Federal Reserve Bulletin • November 1979 the House, H.R. 7, is a hybrid, initiating a provide assurance that the Federal Reserve will mandatory reserve structure and open access to in fact have an adequate base of reserves in all services if a revised voluntary structure fails to foreseeable circumstances for the effective constem membership attrition. duct of monetary policy. This threshold question—mandatory against voluntary—has been at the center of much past TREATMENT OF debate. The voluntary approach has always had TRANSACTION BALANCES a certain appeal to me and others—it is the way the Federal Reserve ha^ operated, and I suspect Both bills would extend reserve coverage of it has helped encourage professionalism and transaction balances to all established depositary efficiency within the System. institutions. The change is clearly consistent I would not want to see those attributes lost. with the emergence of transaction accounts at But a purely voluntary approach toward reserve thrift institutions, the growth of which can be requirements does not seem to be practicable expected to accelerate as the powers of those or possible at this time. The cost of eliminating institutions to operate such accounts are enthe burden of reserves, as would be necessary larged. Such coverage assures, first, that larger in a voluntary system, would be relatively and larger portions of the basic money supply high—apparently higher than the administration of the nation will not escape direct Federal or the Congress would find tolerable. Full pric- Reserve influence; second, that future competiing and open access to our services—a key tion in markets for transaction deposits will be consideration to many in the Congress and else- conducted without one institution or another where—would not be feasible. Consequently, enjoying an unfair competitive advantage. I I believe it is more fruitful to concentrate on would note in that connection that financial the mandatory approaches to reserves: S. 85 and technology does not stand still, and the definithe basic provisions of H.R. 7. That approach tion of a transaction balance—in principle, an is consistent with the position preferred by the account from which payments to third parties Federal Reserve Board for a long time. can be made—is critical. For instance, we can These two bills have consistent common ele- now observe burgeoning growth of money marments. Those elements, with one important ex- ket mutal funds, many of which now offer ception, provide an appropriate framework for facilities for transfer by draft, raising the quesspeedy resolution of the remaining issues. tion of whether such funds do not perform the 1. To the extent reserves are required, both economic function of a transaction account. bills would apply them on a consistent basis Providing the Federal Reserve has authority against comparable deposits or other accounts to define transaction balances, I believe it apin competing depositary institutions. propriate to concentrate the focus of reserve 2. The reserve structure would focus mainly requirements on those accounts, which are, toon transaction balances, the central element in gether with currency, the most active element the money supply and in monetary control. in the nation's money supply. However, we 3. Access to Federal Reserve services would need to remember that non-interest-bearing rebe open to all depositary institutions, and the serves do have the characteristic of a tax on Federal Reserve would be expected to recover those deposits; a high tax will discourage use the full cost of those services through pricing. of transaction accounts over time relative to 4. Voluntary membership in the Federal Re- other outlets for liquid funds, lead to innovaserve System, which would continue to have tions in payment mechanisms outside the perimplications for certain supervisory and regula- imeter of the definition of defined transaction tory matters and for election of Federal Reserve accounts, and promote the growth of money Bank directors, would remain. substitutes entirely outside the traditional do- My own understanding is that these basic, mestic banking system, gradually impairing the common approaches have wide support among base upon which the Federal Reserve operates. affected institutions. What remains to be done For that reason we should be wary of setting is to reconcile remaining differences and to the requirement too high. The 12-percent ratio Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 825 initially set in S. 85 is slightly higher than the against nonpersonal time deposits, but there are 11 percent of H.R. 7. Even if the initial ratio important differences. were to be set as high as that provided in S. S. 85 seems to envisage a more or less 85 in the interests of preserving Treasury reve- permanent requirement on nonpersonal time denue, I believe that ratio should also be the top posits, starting at the substantial initial level of of the permissible range, as already specified 6 percent. Such a permanent requirement poses in the House bill. an important substantive problem. Competition An important difference in the two bills lies for funds flowing into nonpersonal time deposits in exemption levels. In S. 85, the reserve re- is intense and growing. The competitive handiquirement would apply to all transaction depos- cap for covered institutions would be significant, its regardless of the aggregate size of the bal- as it is today, when the commercial paper marances in an institution, although the reserve ratio ket, the Eurodollar market, and money market is set at only 3 percent for the first $5 million funds are growing rapidly. A substantial perof such deposits. In H. R. 7 the first $35 million manent reserve requirement would also place of transaction deposits in an institution are ex- new burdens on thrift institutions. empt from reserve requirements, and that ex- For these reasons, the more practicable and emption would be ratcheted upward as deposits desirable approach would be to maintain limited grow. The universal, virtually uniform ratio of authority for the use of reserve requirements on S. 85 seems to us in the Federal Reserve more short-term nonpersonal time deposits on a congenial to the basic thrust of both bills, which standby basis as seemed to be contemplated by is to place competing institutions on an equal H.R. 7. The circumstances for use should be footing. In practice, monetary control would not exceptional, but not so extreme as stated by a be significantly impaired by exemption of a very colloquy on the House floor, which would consmall amount of transaction balances for each fine such use only to circumstances in which institution. However, at some point, an exemp- other countries agreed with the United States tion does have adverse implications for the to impose parallel requirements on Eurodollars. reserve base and effective monetary control. For instance, there may be occasions when such This committee and the Congress will need authority would be extremely useful to restrain to resolve this practical and philosophical ques- excessively rapid growth of near-money and of tion about the exemption level; a requirement bank credit, particularly by large institutions. graduated downward for small balances is one Moreover, the borderline between a transaction obvious possibility. I would emphasize that balance and a very short time deposit may most institutions holding relatively small become so fuzzy as to suggest more equal amounts of transaction balances—for commer- reserve treatment. cial banks up to $10 million or $15 million— will in practice be able to use cash held in their THE QUESTION OF MONETARY vaults to satisfy the requirements of S. 85 with- CONTROL AND THE RESERVE BASE out cost; a more smoothly graduated reserve ratio would in practice exempt even more. The key problem I have with the reserve structure specified in H.R. 7 or in S. 85 (assuming, in the latter case, no initial requirement on time TREATMENT OF TIME deposits) concerns the volume and distribution AND SAVINGS DEPOSITS of reserve balances that would be held in Federal Both bills would exempt all savings and per- Reserve Banks. These balances, and only these sonal time accounts from reserve requirements. balances, provide the "fulcrum" for the effi- Because of the strong competition from other cient conduct of monetary policy. savings outlets outside the banking system, that A few numbers will give you a sense of the exemption is strongly and understandably urged potential problem. Today, some 5,600 banks by both banking and thrift institutions and is hold about $30 billion of reserves at the Federal acceptable to the Federal Reserve. Both bills Reserve Banks, and those banks account for also provide authority to apply such reserves some 70 percent of all commercial bank depos- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

826 Federal Reserve Bulletin • November 1979 its. Under H. R. 7, only 450 banks would keep proportion of total commercial bank deposits in any required reserves with the Federal Reserve; central bank balances than would be provided reserve balances would total only about %ll/i by the transaction account requirements of either billion; and those 450 banks, while the largest H.R. 7 or S. 85. in the country, would account for only 54 per- We cannot be certain precisely how large cent of total commercial bank deposits. reserve balances need to be to assure effective While S. 85 would provide much higher cov- monetary control and a well functioning banking erage, it would achieve that result in large part system. I feel quite sure we can do with a by extending substantial reserves to time depos- smaller reserve base than we now have. It is its. That arrangement, as I have just noted, conceivable that the reserve requirements imwould create other serious problems if contem- plicit in a modified S. 85 or in H.R. 7 may plated as permanent. be sufficient, but I have grave doubts. Under Viewed in another light, the ratio of reserve H.R. 7, 97 percent of the nation's banks would balances at the Federal Reserve Banks to the either be exempt entirely or hold more than total of deposits at all commercial banks would enough reserves in the form of vault cash to drop to well below 1 percent under H.R. 7, meet their requirements. Some technically covand to about IV2 percent under S. 85 (with- ered banks would voluntarily wish to hold more out time deposit reserves). These percentages reserves than required, and that uncertain are uncomfortably low, even on operational "excess," differing from bank to bank and grounds, considering the enormous volume of varying over time, would loosen the relationship clearings that go through the Federal Reserve between reserves and deposits. As a conse- Banks every day. Large and erratic day-to-day quence, the ability of the Federal Reserve to fluctuations in such operational factors as cur- control deposits by adjusting the reserve base rency in circulation or "float" arising from could deteriorate, perhaps severely. check clearings could, with a relatively low I have discussed both with members of this reserve base, have magnified effects on the committee and with representative industry money supply and weakened monetary control. leaders a practical approach for dealing with this I know that the committee has already heard problem. This approach would provide the Fedtheoretical debates about whether reserve re- eral Reserve with the assurance we need that quirements are essential at all to the conduct reserve balances will be adequate for monetary of monetary policy—indeed I have engaged in control and to support the nation's depositary such theorizing myself. But we in the Federal system, while not significantly adding to costs Reserve have the practical responsibility of of banks and other depositary institutions, disoperating monetary policy, and you will prop- turbing competitive relationships among them, erly hold us accountable. We are not interested or draining revenue from the Treasury. in committing ourselves to the conduct of mon- More specifically, I propose adding a provietary policy on the basis of untested and con- sion to the legislation for standby authority to troversial theorizing. the Board to call for "supplementary deposits" In that connection, foreign experience has to be held at Reserve Banks by all depositary often been cited, including the fact that some institutions up to a specified maximum. The industrial countries do not impose legal reserve Federal Reserve would be required to provide requirements. A few of those countries approach banks with a market yield on those deposits, monetary control either by keeping their banks the formula for which should be fixed in law continuously in debt to the central banks and to be comparable to the yields on U.S. governmaintaining close control over the level of in- ment securities. One simple way of providing debtedness as a method of control, or by relying such a return would be to provide that the heavily on direct, quantitative controls on bank supplementary deposits be invested in earnings liabilities on assets. Both methods are foreign participation certificates in the Federal Reserve's to our experience and traditions. Other leading own portfolio of U.S. government and agency countries, whether by statute, convention, or securities. tradition, de facto maintain a significantly higher I would not expect this authority to be used Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 827 unless the Federal Reserve found that, in prac- would need to be proportionately higher, tice, monetary policy could not be effectively depending on exemptions and the level of reimplemented with the reserve balances required quirements determined elsewhere in the legislaunder the other provisions of the legislation. tion, to assure an equivalent reserve base. We Consequently, the authority should be viewed would be glad to work with the committee in as an "insurance policy" or "safety net," to developing precise legislative language to meet be used only in the event experience demon- the need in the way best suited to all interests. strates the need for a larger reserve base than I would emphasize that the receipt of earnings would be produced by other provisions of the on the supplementary deposits at a market rate bill. Thus, the percentage of deposits to be held will, over time, mean that institutions should as supplementary deposits probably would suffer very little, if any, loss in earnings from change infrequently, if at all, over time, if the any call for such balances. If earnings are deauthority were used. termined by the return in the Federal Reserve As further assurance that the supplementary portfolio, those earnings will reflect a mix of deposits would not be introduced lightly, I sug- long- and short-term securities. Yield fluctuagest that (1) the Board not be permitted to call tions would be less volatile than the yield on for such deposits unless five members of the shorter-term securities alone because the port- Board vote affirmatively, (2) a report is issued folio yield varies less over time than does, say, to this committee, and (3) the determination by the 3-month bill rate. In years of relatively high the Board is renewed at, say, two-year intervals. short-term rates, banks would be able to earn Arrangements would be made for nonmember more by investing in the market short-term, but banks and thrift institutions to respond to a call the reverse is likely to be true in years of for supplementary deposits by dealing through relatively low short-term rates. established banking correspondents. The law I must also emphasize that a call for suppleshould, for instance, specify that such supple- mentary deposits would have no effect on mental deposits be held with the Federal Home Treasury revenues. In effect, the Federal Re- Loan Banks, in the case of their member insti- serve would simply add to existing security tutions, or with the Central Liquidity Facility holdings to match the increased liabilities to of the credit unions. The thrift institutions banks and other depositary institutions incurred could, in turn, be permitted to count these from supplementary deposits held at Reserve deposits toward meeting their existing liquidity Banks. These new security purchases would requirements, but the deposits would be provide the income to be transferred to the "passed through" to the Federal Reserve Banks banks. And the banks would pay taxes to the so the funds could become part of the reserve Treasury in about the same amount as if there base. Possible arrangements of this kind have had been no supplementary deposits. been reviewed with, and in principle are supported by, the Federal Home Loan Bank Board PROVISION AND CHARGE FOR SERVICES and the National Credit Union Administration Board. Both S. 85 and H.R. 7 provide broadened access It would make relatively little difference from to System services, including the discount winthe standpoint of monetary control whether dow, and a mandate to charge for those services these supplementary deposits are determined as at prices adequate to cover costs, including a percentage of transaction balances or of all imputed capital costs and taxes. In principle, deposits held at institutions. The maximum per- these provisions are acceptable to the Federal centage requirement would, of course, have to Reserve. Intelligently implemented, we believe be judged against the base of deposits to which this approach can contribute to the efficiency, it applied. For instance, a limit as low as 2 competition, and safety of the financial system. percent would be adequate if the base were to I would emphasize, however, that open access be total deposits, both transaction and time. If and pricing are practicable only after reserve transaction balances alone are covered—only requirements are restructured and applied to all about 20 percent of the whole—the upper limits depositary institutions if we are to avoid exac- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

828 Federal Reserve Bulletin • November 1979 erbating the cost burdens now placed on mem- against the notes. In mid-1979, for instance, ber banks. collateral in excess of currency was only $13 Substantial progress has been made within the billion. In terms of deposits outstanding at that Federal Reserve toward developing pricing pol- time, balances at Federal Reserve Banks would icies and schedules for Reserve Bank services. be reduced about $24 billion under H.R. 7 and Those efforts will be pursued with vigor. I roughly $14 billion under S. 85 without the should note that in this process a number of reserve requirement on time deposits. The redifficult technical and policy problems— duction in government security holdings in the problems familiar to those engaged in the pric- Fed portfolio that would have to accompany the ing of other public services when there is an decline in reserve requirements would leave the obligation not only to cover costs but also to System with too few eligible securities to meet maintain a minimum level of service—are ap- the legal collateral requirements. parent. For that reason, I would urge that the S. 85 would meet this collateral problem by legislative language not unduly limit our flexi- permitting all financial assets held by Federal bility in pricing particular services, while re- Reserve Banks to stand behind the Federal Retaining the goal of full-cost coverage. serve's currency liability and by eliminating the Open access and pricing of System services requirement to collateralize notes remaining in likely will induce major changes in existing the vaults of Federal Reserve Banks. This apbanking relationships. It may have differential proach, while clearly meeting the need, was effects on large and small, or city and rural, rejected by the House apparently on the grounds institutions. Moving too precipitously to put this that it might open the way to the Federal Renew system into place could cause disruptions serve acquiring a broader range of assets. To in banking markets. Consequently, I would urge meet that objection, assets eligible for collatthat the pricing provision allow some flexibility eralizing currency might be confined to certain in timing and implementation. Moreover, it enumerated market-type assets that may already should be clear that the Federal Reserve need be held by the Federal Reserve. not precisely match costs and revenues for every I would suggest adding to the present list only service. Indeed, the Board questions whether a assets acquired abroad arising from time to time charge for the receipt and disbursement of cur- out of our foreign currency operations—a relarency is appropriate at all. The government tively small but fluctuating amount—while remight normally be expected to provide that moving the requirement for collateral against service, and in any event, the Treasury already notes held by the Federal Reserve itself. In that earns some $7 billion per year from the provi- connection, the Federal Reserve Act already sion of currency through securities held by the permits us to hold foreign bank deposits and Federal Reserve as collateral. bills of exchange; it would be helpful to us operationally if short-term foreign government securities could be added to our authorized COLLATERAL FOR holdings—an omission at the time of the origi- FEDERAL RESERVE NOTES nal Federal Reserve Act when such securities A technical problem regarding collateral against were not widely available. Federal Reserve notes does arise in the bill. Under existing law, currency issued by the THE PHASE-IN Federal Reserve must be secured by certain assets of the Federal Reserve specified in the S. 85 and H.R. 7 differ substantially in phase-in Federal Reserve Act. If no changes were to be time for the application of reserves to transacmade in this requirement, the reserve reductions tion balances of nonmember institutions: four implied by the bills that are before you could years for the former, ten years for the latter. be technically unworkable because these reduc- The Board feels the S. 85 approach, which tions might result in insufficient amounts of itself provides considerable time, is more in government securities and other eligible finan- keeping with the purposes of the legislation, cial assets to meet the collateral requirements particularly for institutions newly entering or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 829 rapidly expanding transaction account business. it should be controversial. Consequently, the At the same time, we are aware that this com- way seems to me clear for promptly enacting mittee and the Congress may be in a better legislation with the following main features: position to appraise the equities of particular 1. Reserve requirements should be placed on situations and to develop an appropriate com- transaction balances at all depositary institupromise. tions. Both S. 85 and H.R. 7 adopt this principle; what remains is only satisfactory resolution of exemption levels and the price level of the EFFECT ON TREASURY REVENUE requirement. There is understandable sensitivity to the impli- 2. To assure an adequate reserve base for cation for Treasury revenue from alternative monetary control and to support the nation's monetary improvement plans, particularly in depositary system, legislation should provide an these inflationary times when the budget is under insurance policy in the form of standby authority pressure. An attachment to this statement for supplementary deposits at Federal Reserve [available on request] shows the revenue input Banks, with those deposits earning a market rate from H.R. 7 and S. 85. As can be seen, the of return. bill acceptable to the House has a cost of around 3. Initial reserve ratios on nonpersonal time $300 million, based on 1977 data. S. 85 would deposits should be set at zero, as in H.R. 7, not cost the Treasury any revenue, but at the but with the understanding that the Federal cost of increasing the reserve burden of many Reserve would have some flexibility to apply depositary institutions. Without a reserve re- reserves to short-term nonpersonal time deposits quirement on time deposits, as I have suggested, if needed to "protect" the dividing line between the revenue loss would be significantly smaller transaction and time accounts or for cyclical than in the House bill. purposes. There should be no reserves on per- I would emphasize that these calculations are sonal or long-term time deposits. artificial because, contrary to all expectations, 4. There should be full pricing and open they assume no revenue loss from rapid attrition access to Federal Reserve services, with adeof Federal Reserve membership, if no bill is quate flexibility, in timing and application, to passed. The net drain on Treasury revenues minimize the risk of disruptions in banking from H.R. 7 or S. 85 as modified would be markets and to protect the availability of a basic quite moderate, if there were any drain at all, level of payment services to all institutions. after account is taken of the losses that would In passing through the lobby of the Federal be incurred by the Treasury due to that attrition. Reserve building recently, I read again a quota- Indeed, the modification I have proposed to S. tion from Woodrow Wilson referring to the 85 would probably still leave the Treasury with original Federal Reserve Act: a net gain in revenue over a reasonable period We shall deal with our economic system of time. Moreover, I would also note that the as it is and as it may be modified, not as Federal Reserve has indicated its willingness to it might be if we had a clean sheet of paper transfer to the Treasury part of its $1 billion to write upon, and step-by-step we shall surplus to cover revenue losses during the tran- make it what it should be. sition period. A constructive blending of S. 85 and H.R. 7, combined with the safety valve I have requested, can take a big step toward developing CONCLUSION a reserve structure as it should be. The basic This committee has before it, in S. 85 and H.R. issue is preserving a strong and effective central 7, nearly all of the essential elements of con- bank able to discharge its responsibilities for structive legislation. I hope you will agree that monetary policy. The questions have been long the major new provision I have proposed debated, and I sense a convergence of views. today—standby authority for supplementary de- Now, this committee has the chance to bring posits—is a useful and possibly essential insur- the long process to the edge of conclusion. I ance policy for monetary policy. I do not believe urge you to seize that chance. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

830 Announcements MONETARY POLICY ACTIONS ary momentum and in inflationary expectations. Such restraint should help to avoid The Federal Reserve on October 6, 1979, an- new uncertainties about the outlook for nounced a series of complementary actions that prices and distortions in markets that could aggravate the process of economic adjustshould assure better control over the expansion ment that is under way. It will help to restore of money and bank credit, help curb speculative a stable base for financial, foreign exchange, excesses in financial, foreign exchange, and and commodity pricing. commodity markets, and thereby serve to Under the provisions of the Humphreydampen inflationary forces. Hawkins Act, the Federal Reserve sets yearly targets for the monetary aggregates Actions taken are as follows: and bank credit, and reports these targets to 1. A 1 percent increase in the discount rate, the Congress. At midyear, the targets for approved unanimously by the Board, from 11 1979, encompassing the period from the percent to 12 percent. fourth quarter of 1978 to the fourth quarter 2. Establishment of an 8 percent marginal of 1979, were reviewed and reaffirmed at Wi to 4!/2 percent for M-l, 5 to 8 percent reserve requirement on increases in "managed for M-2, and 6 to 9 percent for M-3.1 These liabilities"—liabilities that have been actively targets, after allowance for the smaller shift used to finance rapid expansion in bank credit. of demand deposits to ATS and NOW ac- This action was also approved unanimously by counts, still seem broadly appropriate. the Board. However, growth over recent months in these aggregates and in bank credit has been 3. A change in the method used to conduct more rapid than is consistent with those monetary policy to support the objective of targets, and if unrestrained, would clearly containing growth in the monetary aggregates be excessive in terms of our basic economic over the remainder of this year within the ranges objectives. Recent Federal Reserve actions, taking account of inevitable lags, should previously adopted by the Federal Reserve. work to contain money and credit growth These ranges are consistent with moderate in the months immediately ahead, consistent growth in the aggregates over the months ahead. with the targeted objectives. The actions This action involves placing greater emphasis announced today are designed to provide in day-to-day operations on the supply of bank further assurance that those objectives will be reached. reserves and less emphasis on confining shortterm fluctuations in the federal funds rate. It was The Board also stressed that banks should approved unanimously by the Federal Open avoid loan activity that supports speculative Market Committee, which comprises all mem- activity in gold, commodity, and foreign exbers of the Board of Governors and five of the change markets. twelve Presidents of the Federal Reserve Banks. In announcing these changes, the Board is- Discount Rate sued the following statement: In announcing the change in the discount rate, Inflation has continued at an exceptionally high rate over recent months. In part, the the Board acted on requests from directors of inflation rate reflects sharply rising energy prices, and those pressures should be sub- 1. The M-1 target had assumed a shift of about 3 siding in the months to come. However, percent of demand deposits to automatic transfer service appropriate restraint on the supply of money (ATS) and negotiable order of withdrawal (NOW) acand credit is an essential part of any program counts; that shift now appears to be about 1 V2 percent to achieve the needed reduction in inflation- so the equivalent adjusted target is 3 to 6 percent for M-1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

831 the Federal Reserve Banks of New York, Phila- a basic reserve ranging from 1 percent to 6 delphia, Cleveland, Richmond, Minneapolis, percent depending on maturity. and San Francisco. The discount rate is the rate The current reserve requirement on Eurodolthat member banks are charged when they bor- lar borrowings is zero while federal funds row from their district Federal Reserve Bank. transactions and repurchase agreements against The change was effective on October 8. U.S. government and federal agency securities are currently exempt from reserve requirements. [Subsequently, on October 9, 1979, the Fed- The marginal reserve will also apply to loans eral Reserve Board announced its approval of made by foreign offices of member banks to actions by the directors of the Federal Reserve U.S. residents and to assets sold by member Banks of Boston, Atlanta, Chicago, St. Louis, banks, Edge corporations, and U.S. branches Kansas City, and Dallas, increasing the discount and agencies to related foreign offices. rates at those banks from 11 percent to 12 The base for the marginal reserve will be percent. The St. Louis action was effective $100 million or the average amount of managed October 8; the Atlanta, Chicago, Kansas City, liabilities held by a member bank, Edge corand Dallas actions are effective October 9, and poration, or family of U.S. branches or agencies the Boston action is effective October 10.] of a foreign bank, as of the two statement weeks The Board indicated that, within the general ending September 26, whichever is larger. Any framework of existing policies regarding the increase in managed liabilities above that point administration of the discount window, the dis- will be subject to the 8 percent marginal reserve. count rate would be managed flexibly to dis- Since the marginal reserve will apply to the courage excessive member bank borrowing. total aggregate level of managed liabilities for each bank, an increase in one component—large CDs for example—may be offset by a decrease Marginal Reserve Requirement in another without any overall increase in re- The marginal reserve requirement adopted by serve requirements. the Board will apply to all increases in managed This action is directed toward sources of liabilities of member banks, Edge corporations, funds that have been actively used by banks in and U.S. agencies and branches of foreign recent months to finance the expansion of bank banks. credit. Member banks are presently estimated This means that these institutions will be to hold over $240 billion in such managed required to put up an additional 8 percent re- liabilities. They have increased by about $17 serve against their deposits to the extent that billion over the last three months. About half they increase the aggregate level of their man- of the increase in bank credit over that period aged liabilities above a base amount. These has been financed by such managed liabilities. liabilities include large time deposits ($100,000 The marginal reserve requirement will also and over with maturities of less than a year), apply to marginal increases in all repurchase Eurodollar borrowings, repurchase agreements agreements on U.S. government and agency against U.S. government and federal agency securities entered into by member banks, Edge securities, and federal funds borrowings from corporations, and U.S. branches and agencies a nonmember institution. (Federal funds bor- except those entered into with other member rowings from member banks, Edge corpora- banks, Edge corporations, and U.S. branches tions, and U.S. agencies or branches of foreign and agencies. A deduction, however, will be banks are exempt in order to avoid a double permitted for U.S. government and agency secounting of reserve requirements.) curities held in an institution's trading ac- The marginal reserves will be in addition to count—securities held for the purpose of resale. any reserve requirement already in place for The Board expects that affected institutions will member banks and Edge corporations. Large not reclassify securities held in their investment time deposits, for example, are already subject accounts to their trading accounts for the purto a supplemental reserve requirement of 2 per- pose of avoiding the marginal reserve requirecent that was put in place last November, plus ment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

832 Federal Reserve Bulletin • November 1979 The marginal reserve requirement is effective to discourage excessive borrowing by member on the increase in managed liabilities in the banks at the discount window. statement week beginning October 11 and The discount rate is the interest rate that maintained in the seven-day period beginning member banks are charged when they borrow October 25. Because U.S. agencies and from their district Federal Reserve Banks. branches of foreign banks will be maintaining The Board later approved actions by the reserves with the Federal Reserve for the first directors of the Federal Reserve Banks of Philtime, they will begin maintaining reserves the adelphia and Kansas City, increasing the disweek beginning November 8. count rates at those banks to 11 percent, effective September 21. FOMC Action REGULATION S: ADOPTION Under the new procedures adopted by the FOMC for the conduct of open market opera- The Federal Reserve Board on September 27, tions—the major tool used by the Federal Re- 1979, announced adoption of rules under the serve in its operations—wider day-to-day or Right to Financial Privacy Act for reimbursing week-to-week fluctuations in the federal funds financial institutions that provide their customrate may occur. The federal funds rate is the ers' financial records as requested or required rate that commercial banks pay to borrow by the federal government. short-term funds generally on an overnight The act and the Board's implementing Regubasis. lation S became effective October 1, 1979. The Over recent years, the FOMC has fixed a Board adopted Regulation S (Reimbursement to relatively narrow range for the federal funds Financial Institutions for Assembling or Providrate. To help achieve better control over the ing Financial Records) following consideration reserve base, it will now be necessary—within of comment received after publication of probroad limits—to permit wider fluctuations of posed rules in August. The act (Title XI of the that rate if so determined by market forces. Financial Institutions Regulatory and Interest In its open market operations, the Federal Rate Control Act of 1978) places restrictions Reserve, through its trading desk at the Federal on federal government access to the financial Reserve Bank of New York, buys or sells gov- records of individuals maintained by financial ernment securities in the open market. In simple institutions by requiring that, with certain exterms, a purchase of securities increases the ceptions, federal authorities seeking such inforlevel of bank reserves while a sale of securities mation must follow prescribed procedures. decreases bank reserves. The act also authorizes, with a number of exceptions, reimbursement to financial institutions for costs associated with providing such CHANGE IN DISCOUNT RATE records and directs the Federal Reserve Board The Board of Governors has approved actions to establish regulatory rules for this reimburseby the directors of the Federal Reserve Banks ment. of Boston, New York, Cleveland, Richmond, Regulation S has the following provisions: Atlanta, Chicago, St. Louis, Minneapolis, 1. Financial institutions are entitled to pay- Dallas, and San Francisco, increasing the dis- ment for the reasonably necessary costs directly count rates of those banks from IOV2 percent incurred in assembling or providing required, to 11 percent, effective September 19. requested, or authorized customer financial rec- Action was taken against the background of ords. The federal financial supervisory agencies recent increases in other short-term interest are exempt from the act's restrictions in the rates, to bring the discount rate into closer exercise of their supervisory, regulatory, or alignment with short-term rates generally, and monetary functions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 833 2. Only financial institutions are entitled to plan. In addition, creditors were required to such reimbursement. This includes credit-card remind customers annually that their homes had issuers. Corporations and partnerships com- been pledged as security for the account. prised of more than five individuals are not Following adoption of the amendment, the affected. Board was urged to reconsider on grounds that 3. The rate of reimbursement for personnel interested parties may not have been aware of time is $10 an hour, or $2.50 per quarter-hour. the proposed action. Consequently, in February Reimbursement is limited to the total amount 1979 the Board requested comment as to of personnel time spent in locating, retrieving, whether the amendment should be repealed, reproducing, packaging, and preparing docu- and, after considering some 160 comments rements or information for shipment at the request ceived in answer to its request, it revoked the or requirement of the federal government. amendment and also rescinded related interpre- 4. The rate of reimbursement for reproduc- tations. tion costs is 15 cents a page. 5. Reimbursement for transportation costs REGULATION E: ADDITIONS is limited to actual costs. The August proposal had suggested that The Federal Reserve Board on October 9, 1979, reimbursement for personnel costs be at a rate adopted a number of additional provisions of of $5 an hour or fraction thereof and that repro- its Regulation E (Electronic Fund Transfers) duction costs be reimbursed at 10 cents a page. implementing the Electronic Fund Transfer Act. The additions deal with the following: (1) requirements for disclosures to consumers REGULATION Z: who use EFT services; (2) exemptions for REVOCATION OF AMENDMENT transfers made to buy or sell securities and for The Federal Reserve Board announced that it transfers of funds within an institution; will revoke on March 31, 1980, an amendment (3) record retention; (4) the relation of the to its Regulation Z (Truth in Lending) that Federal Electronic Fund Transfer Act to state allowed an exception to the "cooling off" pe- law on this subject; and (5) requirements for riod for consumers who pledge their homes as compliance with certain provisions of the act by those offering EFT services. security in open-end credit arrangements. Truth in Lending requires that when a home The exemptions (item 2) become effective is used as collateral for a consumer loan the November 15. The remainder of the new rules lender must give notice that the borrower has will become effective upon the effective date a three-day "cooling off" period in which to of the sections of the act upon which the rules cancel the deal. are based: May 10, 1980. The Board's amendment announced in July 1978 exempted individual advances under MEETING OF open-end credit arrangements (such as use of CONSUMER ADVISORY COUNCIL a credit card) from the requirement of such notice when the creditor and the seller are not The Federal Reserve Board announced a meetthe same or related persons. The amendment ing of its Consumer Advisory Council on Ocrequired that the right-of-rescission notice must tober 22 and 23, 1979. be given in the case of such open-end credit The Council discussed proposals under the transactions secured by a home mortgage when Electronic Fund Transfer Act issued by the the credit plan is first opened; when the credit Board for public comment and considered what limit is increased; when the terms of the account contribution the Council might make to Board are changed; and when a security interest in a analyses of the economic impact of its regulahome is added to an existing open-end credit tions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

834 Federal Reserve Bulletin • November 1979 ASSETS AND LIABILITIES graphic areas is shown in the accompanying OF OVERSEAS BRANCHES table. These data are derived from reports of condi- OF MEMBER BANKS tion filed at the end of the year with the Comp- Combined assets of the overseas branches of troller of the Currency and the Federal Reserve member banks increased $29.7 billion, or 13.0 System, and differ in certain respects from other percent, during 1978, to a total of $257.6 bil- statistical reports covering aspects of overseas lion, the Federal Reserve Board reported on branch operations. The table reflects changes to September 17, 1979. the report form that were implemented at year- Excluding claims on other foreign branches end 1978. Among other changes, the new forof the same bank, combined assets were $232.0 mat provides greater information on transactions billion at the end of December, a 13.2 percent with affiliates and on the source of branch deincrease from year-end 1977. Branches located posits. The demand-time deposit distinction, in the financial centers of the United Kingdom which has special meaning for offices within the and the Caribbean accounted for 64 percent of United States, has been discontinued. The report total foreign branch assets and represented 60 reflects all assets and liabilities of overseas percent of the increase during 1978. During the branches whether denominated in U.S. dollars past two years, the greatest relative increase has or in other currencies. Nondollar amounts have occurred in the Near East and Africa, reflecting been translated into dollars at the relevant exmostly the growth of Bahrain as an international change rate. financial center. At year-end 1978, member banks operated REVISED OTC STOCK LIST 761 branches in foreign countries and overseas territories, a net increase of 31 branches during The Federal Reserve Board has published a the year. A distribution of branches by geo- revised list of over-the-counter (OTC) stocks Assets and liabilities of overseas branches of member banks, end of year, 1977 and 19781 Millions of dollars, unless otherwise indicated K I U i r n n a e g l n i a t d d e n o d d m Co E n u ti r n o e p n e t al C B a ah y a m n a d m a n as s Am La e t r in ic a E F a a s r t A N E a f e a n r a s i d c t r a a o r v e U t e a r r s . u S s s e . a t a n s d territories 1977 1978 1977 ! 978 ASSETS Cash 37,422 38,886 14,400 11,935 19,172 21,993 1,452 1,192 4,918 4,710 187 3,212 331 603 79,882 82,531 Loans, net 24,812 28,205 12,125 14,968 40,529 40,472 6,232 8,386 19,255 21,132 598 5,664 2,584 2,687 109,135 121,513 Due from other non-U.S. branches of own bank 13,983 15,625 3,464 3,458 2,640 3,254 127 489 1,906 2,092 742 594 51 98 22,913 25,611 Due from head office and U.S.-branches . 3,508 3,583 69 181 274 1,354 148 224 316 384 46 127 67 135 4,431 5,988 Due from consolidated subsidiaries2 3,502 862 2,218 129 991 7,823 Other assets 3,001 4,011 1,934 1,874 745 2,731 2,854 257 342 423 572 11,508 14,115 2,418 3,564 Total 82,726 93,812 64,549 71,165 8,705 11,316 29,126 32,163 6,831 10,032 3,457 4,122 227,868 257,580 32,475 34,969 LIABILITIES Total deposits 76,534 87.541 21,342 27,376 41,371 48,095 5,450 5,828 13,517 14,073 5,242 7,012 2,845 3,399 172,301 194,225 Deposits of other banks3 45,006 18,574 27,078 2,761 6,243 4,389 450 104,501 Other deposits3 42,535 8,802 21,017 3,967 7,830 2,623 2,949 89,724 Due to other non-U.S. branches of own bank 2,386 644 2,286 2,623 4,889 7,449 2,072 3,077 10,716 10,473 1,264 2,137 26 94 23,639 26,497 Due to head office and U.S. branches 1,508 1,357 720 1,214 17,207 13,737 336 493 486 1,626 163 610 269 74 20,690 19,111 Due to consolidated subsidiaries2 19 956 415 129 524 5 476 2,524 Other liabilities 2,126 2,800 11,238 15,225 2,298 4,250 1,083 1,469 845 890 4,407 5,467 161 269 316 Total 32,475 34,969 227,868 257,580 82,726 93,812 64,549 71,165 8,705 11,316 29,126 32,163 6,831 10,032 3,457 4,122 Number of branches 61 62 110 113 132 142 199 199 138 146 42 48 51 730 761 1 Data are from Board of Governors of the Federal Reserve System. Details may not add to totals due to rounding. 2 Before 1978, transactions with consolidated subsidiaries were not segregated but were treated as if they were with nonaffiliated organizations. 3 This detail was not provided before 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 835 that are subject to its margin regulations, effec- its monthly G.7 statistical release on commertive September 28, 1979. The list supersedes cial bank credit and its weekly H.8 release on the revised List of OTC Margin Stocks that was commercial bank assets and liabilities and inauissued on April 2, 1979. gurated a new monthly G.10 release on com- Changes that have been made in the list, mercial bank nondeposit funds. The new statiswhich now includes 1,229 OTC stocks, are as tical series to be published in these releases were follows: 78 stocks have been included for the described in an article in the September 1979 first time; 12 stocks previously on the list have BULLETIN, "New Measures of Commercial been removed for substantially failing to meet Bank Credit and Bank Nondeposit Funds." the requirements for continued listing; and 57 The monthly G.7 release has been expanded stocks have been removed for listing on a na- to provide separate information on bank credit tional securities exchange or because the com- for domestically chartered banks and for panies were acquired by another firm. foreign-related institutions including U.S. The list is available on request from Publica- branches, agencies, and New York investment tions Services, Division of Support Services, company subsidiaries of foreign banks and Edge Board of Governors of the Federal Reserve Act corporations engaged in banking. The ex- System, Washington, D.C. 20551. panded series also provides considerably more loan detail than was available previously. In addition, the new bank credit series are esti- CHANGES IN BOARD STAFF mated on a monthly average basis, replacing the The Federal Reserve Board has announced the former end-of-month series, and coverage now following promotions, effective September 23. includes lease financing receivables for the first James R. Kudlinski as Director of a reorgan- time. ized Division of Federal Reserve Bank Opera- Formerly, the H.8 release provided estimates tions that consolidates the Divisions of Federal of bank assets and liabilities including U.S. Reserve Bank Operations and Federal Reserve branches of foreign banks as well as domesti- Bank Examinations and Budgets. cally chartered banks, but these estimates were Clyde H. Farnsworth, Jr., Associate Director subject to very large revision and the release of the Division of Federal Reserve Bank Exam- was discontinued after December 1979. Revised inations and Budgets, has been appointed data sources and estimation procedures now Deputy Director. make it possible to resume publication of the H.8 with coverage of the weekly estimates limited to domestically chartered banks. In addi- SUPPLEMENT TO FEDERAL RESERVE tion, a monthly supplementary table will be COMPLIANCE HANDBOOK included in the H.8 release to provide month- The first supplement to the Federal Reserve end estimates of assets and liabilities for all Compliance Handbook, which affects 12 pages commercial banks including the foreign-related of the Examiner Checklist, is now available. institutions. The revised H.8 release contains Requests for copies may be sent to Publica- data for a somewhat different list of assets and tions Services, Division of Support Services, liabilities than previously provided. Board of Governors of the Federal Reserve The new G. 10 provides monthly estimates of System, Washington, D.C. 20551. commercial bank nondeposit funds, which, together with deposit flows, constitute the banks' most important sources of funding of credit STATISTICAL RELEASES operations. In recent years, commercial banks ON COMMERCIAL BANK have increased their borrowings in the form of ASSETS AND LIABILITIES federal funds, security repurchase agreements (RPs), and other borrowings from nonbank In order to provide for prompt publication of lenders, including borrowings in the Eurodollar new measures of commercial bank assets and market that are channeled through directly reliabilities, the Board of Governors has revised Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

836 Federal Reserve Bulletin • November 1979 lated institutions abroad. The new release pro- The role of the committee will be to achieve vides estimates of the amount of funds raised greater consistency of services among Federal from these sources by both the domestically Reserve Districts in such areas as check collecchartered and the foreign-related banking insti- tion, cash, and fiscal agency operations. tutions that are covered in the revised commer- Members of the steering committee will be cial bank series on credit and on assets and lia- Robert P. Black, President of the Federal Rebilities. In addition, the G.10 release provides serve Bank of Richmond; Robert H. Boykin, monthly estimates of several series for which First Vice President of the Federal Reserve Bank movements are closely related to those of the of Dallas; and William H. Wallace, Staff nondeposit funds series. These series include RP Director for Federal Reserve Bank Activities at borrowings from nonbanks, U.S. Treasury de- the Board of Governors in Washington. mand balances at commercial banks, and large- Special task forces will be established under denomination time deposits as well as some the steering committee, which will have recomponent series underlying the net Eurodollar sponsibility for setting standards for Reserve component of the nondeposit funds series. Bank services. Services to be reviewed include Back data are available for the new bank fiscal agency operations (Treasury and governcredit, nondeposit funds, and commercial bank ment agency issues and coupons, food coupons, assets and liabilities series for the period 1973 federal taxes, and Treasury tax and loan acto date. They may be obtained from the Banking counts, government checks, and securities safe- Section, Division of Research and Statistics, keeping and transfers), currency and coin, check Board of Governors of the Federal Reserve and noncash collection, wire transfers of funds, System, Washington, D.C., 20551. automated clearinghouse operations, and member bank loans. The American Bankers Association is ex- SYSTEM MANAGEMENT COMMITTEE pected to establish similar groups to work with The Federal Reserve on October 9, 1979, an- the Federal Reserve on these programs. nounced the creation of a special committee of Frederick H. Schultz, Vice Chairman of senior System management to draw up standards the Board, said work in establishing servicefor services to member banks and other institu- level standards will begin within the next several tions that will apply in all 12 Federal Reserve weeks, and a final report is expected early next Districts. year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

837 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON AUGUST 14, 1979 1. Domestic Policy Directive The information reviewed at this meeting suggested that real output of goods and services was continuing to decline in the current quarter; according to preliminary estimates of the Commerce Department, real output had fallen at an annual rate of 3.3 percent in the second quarter. Average prices, as measured by the fixed-weight price index for gross domestic business product, appeared to be rising at an annual rate close to the IOV2 percent that had been estimated for the second quarter. Staff projections suggested some further contraction in economic activity and then an upturn beginning in 1980. Over the year ahead the rise in average prices was projected to moderate a little. The rate of unemployment was expected to increase substantially. The dollar value of retail sales edged up in July, but in real terms such sales were estimated to be about 5V2 percent below their December 1978 peak. A sizable decline in sales of new automobiles contributed substantially to the recent weakness in retail sales. At the end of July, dealers' stocks of unsold cars, particularly of the less fuel-efficient models, were exceptionally large. Growth in nonfarm payroll employment slowed considerably further in July after having expanded at a much reduced pace during the second quarter. In manufacturing, employment declined for the fourth month in a row and the average workweek remained at the reduced level of May and June. However, the unemployment rate, at 5.7 percent, stayed within the narrow range that has prevailed since the beginning of the year. The index of industrial production declined 0.3 percent in June, and available data suggested a further small decline in July to a level close to that of December 1978. The weakness in June and July was dominated by reduced output of consumer durable goods, especially motor vehicles. Manufacturers' new orders for nondefense capital goods rose moderately in June but remained below their March peak. Contract awards Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

838 Federal Reserve Bulletin • November 1979 for commercial and industrial buildings—measured in terms of floor space—declined for the fourth consecutive month. Housing starts rose further in June but, at an annual rate of about 1.9 million, were still moderately lower than in 1977 and 1978. Sales of both new and existing single-family homes fell substantially in June. Producer prices of finished goods and of materials rose sharply further in July, after a much more rapid rate of increase over the first half of 1979 than during 1978. In July the increases continued to be especially pronounced in energy-related items. Prices of consumer finished foods were unchanged, after having declined in the previous three months. However, producer prices of crude foods and animal feeds, which had also declined during the second quarter, rose substantially. In June consumer prices continued to increase rapidly. The rise in energy prices accelerated further and increases in homeownership costs remained large. The rise in food prices moderated further, however, following especially sharp increases during the early months of the year. Over the first half of 1979, consumer prices rose at an annual rate of about 13V4 percent, compared with 9 percent in 1978. In July the rise in the index of average hourly earnings of private nonfarm production workers picked up to an annual rate of about 8!/2 percent, following a marked slowing in the advance during May and June. Over the first seven months of the year the rise was at an annual rate of IV2 percent compared with 8V2 percent during 1978. In the nonfarm business sector, the advance in total compensation per manhour moderated in the second quarter from the very rapid pace in the first quarter, which had been affected by increases in social security taxes at the beginning of the year. The rise in unit labor costs was as rapid as in the first quarter, however, as output per manhour declined significantly further. In foreign exchange markets the trade-weighted value of the dollar against major foreign currencies declined somewhat further in the second half of July, and central banks made additional net purchases of dollars. The dollar recovered subsequently, but it was still about 3V2 percent below its level in early June. The U.S. trade deficit widened between the first and second quarters. A sizable increase in the value of oil and other imports exceeded the rise in nonagricultural exports. Expansion of total credit outstanding at U.S. commercial banks, which had picked up in June, moderated in July to about the April-May Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 839 pace. Growth in loans also moderated in July after an acceleration in June. Banks continued to add sizable amounts to their holdings of securities, especially U.S. government obligations. Growth in commercial paper issued by nonfinancial firms exceeded the strong second-quarter pace, owing in part to large sales by foreign issuers. The monetary aggregates—M-l, M-2, and M-3—continued to expand rapidly in July. Growth in M-l, at an annual rate of about 10 percent, was moderately lower than in June but close to the average pace during the second quarter. Inflows to commercial banks of interest-bearing deposits included in M-2 increased slightly in July. Net inflows of funds to nonbank thrift institutions moderated somewhat, despite a pickup in net issuance of money market certificates by these institutions. At its meeting on July 11, the Committee had decided on ranges of tolerance for the annual rates of growth in M-l and M-2 during the July-August period of 2xh to 6J/2 percent and 6!/2 to IOV2 percent respectively. The Committee had agreed that early in the intermeeting period the Manager of the System Open Market Account should continue to direct operations toward maintaining the weekly average federal funds rate at around IOV4 percent. Subsequently, if the twomonth growth rates of M-l and M-2, given approximately equal weight, appeared to be close to or beyond the upper or lower limits of the indicated ranges, the objective for the funds rate was to be raised or lowered in an orderly fashion within a range of 93A to 10J/2 percent. About a week after the meeting, on July 19, projections suggested that over the July-August period growth in M-l would be above the upper limit of the range specified by the Committee and that growth in M-2 would about equal the upper limit of its range. In those circumstances, the Manager began to aim for a weekly average federal funds rate at about the 10!/2 percent upper limit of its range. On July 20 the Board of Governors announced an increase in Federal Reserve Bank discount rates from 9Vi to 10 percent. On July 27, with projections suggesting that over the two-month period growth of both M-l and M-2 would exceed the upper limits of their ranges and with the objective for the federal funds rate at the upper limit of its range, the Committee voted to raise the upper limit of the range for the funds rate to 10% percent and instructed the Manager to aim for a rate within a range of \0V2 to 10% percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

840 Federal Reserve Bulletin • November 1979 Over the remainder of the intermeeting period the funds rate averaged just under 10% percent. Short-term market rates in general rose during the intermeeting period. In late July most banks raised their loan rate to prime business borrowers from IV/2 to 11% percent. In long-term debt markets, however, interest rates changed little during the period, reflecting a relatively light schedule of new corporate and municipal bond offerings and also reactions to further evidence of a weakening economy. In home mortgage markets, yields on new mortgage commitments declined slightly. In the Committee's discussion of the economic situation and outlook, none of the members expressed disagreement with the staff appraisal that real gross national product was continuing to decline in the current quarter. However, members expressed considerable uncertainty about the duration and extent of the decline in activity. On the one hand, it was suggested that a substantial decline in consumer spending—generated by high consumer debt and low consumer confidence as well as by energy problems and inflation—could have a major effect on business spending for plant and equipment. Concurrent weakness in those two sectors could quickly produce an unwanted accumulation of business inventories, a cumulative curtailment in output, and a sharp rise in unemployment. On the other hand, it was observed, certain elements in the current situation suggested that the curtailment in output could be limited to modest proportions. For example, prices of common stocks on the average had been rising, in contrast with the more usual decline associated with the onset of recession, and various measures of risk premiums in markets for debt instruments had remained low by historical standards. Moreover, growth of the monetary aggregates had strengthened in recent months after a period of weakness, whereas generally in recession growth had weakened and then remained weak. Members continued to express great concern about inflation. It was observed that for a long period elements in the economic situation had seemed to justify expectations of a reduction in the rise in prices. Such expectations had been disappointed. Moreover, little reduction could be expected in the short run because recent increases in energy prices had not yet fully worked through the price structure. It was noted that the decline in the rate of inflation projected for the quarters immediately ahead was small, and much smaller than that associated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 841 with the previous recession. Thus, inflation might still be at a high rate when economic activity turned up again. Inflationary expectations appeared to have worsened in the sense that, more than ever before, consumers and businessmen seemed to take the inflationary environment into account in making spending and investing decisions. In considering policy for the period immediately ahead, Committee members focused on the problems posed by emerging recession and its potential for substantial increases in unemployment, concurrent with strong monetary growth, high actual and expected rates of inflation, and an exposed position of the dollar in foreign exchange markets pending anticipated improvement in the U.S. foreign trade and current accounts. Any policy course in these circumstances necessarily involved unusual risks: prompt pursuit of a policy aimed at moderating the effects of the curtailment in output could be perceived as exacerbating inflation and thus could have perverse effects on economic activity and employment; a policy directed toward moderating inflation and lending support to the dollar in the foreign exchange markets could risk intensifying the recession. There was little disagreement with the proposition that for the near term modest measures should be taken to direct policy toward slowing growth of the monetary aggregates. Control of monetary growth was regarded as essential to restore expectations of a decline in the rate of inflation over a period of time. It was suggested that public confidence in the determination to direct monetary policy toward reducing inflation would have a constructive influence on the course of long-term interest rates and on sentiment in foreign exchange markets, and it might also be an element in wage and price determinations. Should developments over the months ahead suggest the desirability of policy measures aimed at reversing the decline in output, moreover, such measures would be more effective in an environment of confidence in the government's adherence to the fundamental objective of reducing inflation. In support of modest measures directed toward restraint, it was suggested that monetary policy recently had not been so restrictive as it might have appeared. Monetary growth since the beginning of the year had been considerably greater than that indicated by M-l, owing to rapid expansion in close substitutes for demand deposits and currency. In addition, the increase in interest rates had been less than that in expected rates of inflation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

842 Federal Reserve Bulletin • November 1979 On the other hand, it was noted that interest rates were close to historic highs. Some doubt was expressed, moreover, that further restraint could have a significant effect on inflation, particularly in view of the role of energy in the rapid rate of increase in prices recently. In the face of clear evidence of weakening in economic activity, it was observed, the need to balance the objective of containing the recession with the goal of moderating inflation called for a steady policy for the time being. In considering policy specifications for the period immediately ahead, the Committee took note of a staff analysis suggesting that the current growth rate of nominal GNP and other influences, including possibly a temporary accumulation of precautionary balances by the public in response to unusual uncertainties, were tending to support the demand for money. On the assumption of continuance of prevailing money market conditions, therefore, growth of both M-l and M-2 over the August-September period most likely would be high relative to the Committee's longer-run ranges, although growth could be expected to slow substantially from the rapid rates of recent months. At the conclusion of its discussion of policy, the Committee decided to instruct the Manager for Domestic Operations to direct open market operations initially toward an increase in the weekly average federal funds rate to about 11 percent. Subsequently, the objective for the funds rate was to be raised or lowered in an orderly fashion within a range of 10% to 11 lA percent, if M-1 and M-2 appeared to be growing over the August-September period at rates close to or beyond the upper or lower limits of the ranges specified for those monetary aggregates. The members decided that the two-month ranges of tolerance for the annual rates of growth in M-l and M-2 should be 4 to 8 percent and 7 to 11 percent respectively. They also agreed that in assessing the behavior of the aggregates, the Manager should give approximately equal weight to M-l and M-2. As is customary, it was understood that the Chairman might call upon the Committee to consider the need for supplementary instructions before the next scheduled meeting if significant inconsistencies appeared to be developing among the Committee's various objectives. The following domestic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that real output of goods and services is continuing to decline in the current quarter, while Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 843 prices on the average are continuing to rise rapidly. In July the dollar value of retail sales edged up; in real terms, sales were still substantially below those of last December. Growth in nonfarm payroll employment slowed considerably further, but the unemployment rate, at 5.7 percent, remained within the narrow range prevailing since the beginning of the year. Industrial production declined in June, and it apparently slackened further in July to about the level of last December. So far this year, broad measures of prices have increased at a much faster pace than during 1978, although producer prices of foods have declined since March. The rise in the index of average hourly earnings, which had slowed in May and June, picked up in July. The trade-weighted value of the dollar against major foreign currencies declined somewhat further in the second half of July, and although it subsequently recovered, it remained below its level of early June. The U.S. trade deficit in the second quarter was larger than in the previous quarter, reflecting largely the significant rise in the price and value of oil imports. Growth of M-l, M-2, and M-3 remained rapid in July. Inflows of interest-bearing deposits included in M-2 were slightly stronger than in June. At nonbank thrift institutions, inflows of deposits declined somewhat. Short-term market interest rates have risen over recent weeks, while long-term rates have changed little on balance. An increase in Federal Reserve discount rates from 9l/z to 10 percent was announced on July 20. Taking account of past and prospective developments in employment, unemployment, production, investment, real income, productivity, international trade and payments, and prices, the Federal Open Market Committee seeks to foster monetary and financial conditions that will resist inflationary pressures while encouraging moderate economic expansion and contributing to a sustainable pattern of international transactions. At its meeting on July 11, 1979, the Committee agreed that these objectives would be furthered by growth of M-l, M-2, and M-3 from the fourth quarter of 1978 to the fourth quarter of 1979 within ranges of \l/z to 41/ percent, 5 to 8 percent, and 6 to 9 percent respectively, the same 2 ranges that had been established in February. Having established the range for M-1 in February on the assumption that expansion of ATS and NOW accounts would dampen growth by about 3 percentage points over the year, the Committee also agreed that actual growth in M-l might vary in relation to its range to the extent of any deviation from that estimate. The associated range for bank credit is 71/2 to 10V£ percent. The Committee anticipates that for the period from the fourth quarter of 1979 to the fourth quarter of 1980, growth may be within the same ranges, depending upon emerging economic conditions and appropriate adjustments that may be required by legislation or judicial developments affecting interest-bear ing transactions accounts. These ranges will be reconsidered at any time as conditions warrant. In the short run, the Committee seeks to achieve bank reserve and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

844 Federal Reserve Bulletin • November 1979 money market conditions that are broadly consistent with the longer-run ranges for monetary aggregates cited above, while giving due regard to developing conditions in foreign exchange and domestic financial markets. Early in the period before the next regular meeting, System open market operations are to be directed at attaining a weekly average federal funds rate slightly above the current level. Subsequently, operations shall be directed at maintaining the weekly average federal funds rate within the range of 10% to 11V4 percent. In deciding on the specific objective for the federal funds rate the Manager for Domestic Operations shall be guided mainly by the relationship between the latest estimates of annual rates of growth in the August-September period of M-l and M-2 and the following ranges of tolerance: 4 to 8 percent for M-l and 7 to 11 percent for M-2. If rates of growth of M-l and M-2, given approximately equal weight, appear to be close to or beyond the upper or lower limits of the indicated ranges, the objective for the funds rate is to be raised or lowered in an orderly fashion within its range. If the rates of growth in the aggregates appear to be beyond the upper or lower limits of the indicated ranges at a time when the objective for the funds rate has already been moved to the corresponding limit of its range, the Manager shall promptly notify the Chairman, who will then decide whether the situation calls for supplementary instructions from the Committee. Votes for this action: Messrs. Volcker, Balles, Coldwell, Kimbrel, Mayo, Partee, Schultz, Mrs. Teeters, Messrs. Wallich, and Timlen. Votes against this action: Messrs. Black and Rice. (Mr. Timlen voted as an alternate member.) Mr. Black dissented from this action because, in view of the rapid monetary growth in recent months, he preferred to specify lower ranges for growth of M-l and M-2 over the August-September period in order to increase the probability of holding growth within the Committee's longer-run ranges. While he agreed that open market operations should be directed toward attaining a slight increase in the federal funds rate initially in the coming intermeeting period, he believed that the directive adopted by the Committee allowed for too rapid monetary growth before a further increase in the funds rate would be triggered. Mr. Rice dissented from this action because he believed that an additional firming in money market conditions at this time, to restrict growth of money and credit, in the face of the evidence of weakening in economic activity would risk deepening the recession. In his view, the effort to balance the goal of reducing the rate of inflation with the objective of minimizing the impact of the recession called for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 845 a policy directed toward the maintenance of prevailing money market conditions unless growth of the monetary aggregates over the August-September period appeared to be substantially faster or slower than the rates currently expected. Subsequent to the meeting, in late August, incoming data indicated that M-l and M-2 were growing at rapid rates in August. On August 30, projections for the August-September period suggested that growth of M-l would be at an annual rate well above the upper limit of the range that had been specified by the Committee and that growth of M-2 would be at about the upper limit of its range. Over the preceding week, the Manager for Domestic Operations had been aiming for a weekly average federal funds rate approaching the 11V4 percent upper limit of its specified range, and in the statement week ending August 29, the rate averaged 11.16 percent. In these circumstances, Chairman Volcker recommended that the upper limit of the range for the funds rate be raised to IV/2 percent, but with the understanding that not all of the additional leeway would be used immediately; use of the leeway would depend on subsequent behavior of the monetary aggregates and on developments in foreign exchange markets. The Committee voted to amend the domestic policy directive in accordance with the Chairman's recommendation. On August 30, 1979, the Committee modified the domestic policy directive adopted at its meeting on August 14 by raising the upper limit of the intermeeting range for the federal funds rate to 11 '/2 percent and by instructing the Manager for Domestic Operations not to raise the objective for the weekly average funds rate to the new upper limit immediately but to be guided by the subsequent behavior of the monetary aggregates and by developments in foreign exchange markets. Votes for this action: Messrs. Volcker, Balles, Black, Coldwell, Kimbrel, Mayo, Partee, Schultz, Mrs. Teeters, Messrs. Wallich, and Timlen. Vote against this action: Mr. Rice. (Mr. Timlen voted as an alternate member.) 2. Authorization for Foreign Currency Operations The Committee approved an increase from $360 million to $700 million in the System's swap arrangement with the Bank of Mexico and the corresponding amendment to paragraph 2 of the authorization for foreign currency operations, effective August 17, 1979. With this change paragraph 2 read as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

846 Federal Reserve Bulletin • November 1979 The Federal Open Market Committee directs the Federal Reserve Bank of New York to maintain reciprocal currency arrangements ("swap" arrangements) for the System Open Market Account for periods up to a maximum of 12 months with the following foreign banks, which are among those designated by the Board of Governors of the Federal Reserve System under Section 214.5 of Regulation N, Relations with Foreign Banks and Bankers, and with the approval of the Committee to renew such arrangements on maturity: Amount of arrangement Foreign bank (millions of dollars equivalent) Austrian National Bank 250 National Bank of Belgium 1,000 Bank of Canada 2,000 National Bank of Denmark 250 Bank of England 3,000 Bank of France 2,000 German Federal Bank 6,000 Bank of Italy 3,000 Bank of Japan 5,000 Bank of Mexico 700 Netherlands Bank 500 Bank of Norway 250 Bank of Sweden 300 Swiss National Bank 4,000 Bank for International Settlements: Dollars against Swiss francs 600 Dollars against authorized European currencies other than Swiss francs 1,250 Votes for this action: Messrs. Volcker, Balles, Black, Coldwell, Kimbrel, Mayo, Partee, Rice, Schultz, Mrs. Teeters, Messrs. Wallich, and Timlen. Votes against this action: None. (Mr. Timlen voted as an alternate member.) This action was taken in light of the increase in recent years in the scale of economic and financial* transactions between the United States and Mexico. 3. Authorization for Domestic Open Market Operations At this meeting the Committee amended paragraph 2 of the authorization for domestic open market operations, effective immediately, to take account of amendments to the Federal Reserve Act enacted in June 1979. The amendments extended for two years the authority Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 847 for lending to the Treasury through direct purchases of securities, under more restrictive conditions than formerly, and for the first time provided for an alternative means of assisting the Treasury in meeting short-term cash needs in more routine circumstances. Specifically, the legislation provided authority for the System to purchase securities directly from the Treasury in unusual and exigent circumstances, for renewable periods not to exceed thirty days, when authorized by the Board of Governors pursuant to an affirmative vote of not less than five members. The legislation also provided authority for the System, subject to the approval and rules and regulations of the Federal Open Market Committee, to lend securities to the Treasury for sale in the open market. The Treasury would be required to repurchase the securities and return them to the System not later than six months after the date of sale. The total amount of securities loaned to and purchased directly from the Treasury at any one time may not exceed $5 billion. As amended, paragraph 2 read as follows: The Federal Open Market Committee authorizes and directs the Federal Reserve Bank of New York (or, under special circumstances, such as when the New York Reserve Bank is closed, any other Federal Reserve Bank) (a) to lend to the Treasury such amounts of securities held in the System Open Market Account as may be necessary from time to time for the temporary accommodation of the Treasury, under such conditions as the Committee may specify; and (b) to purchase directly from the Treasury for renewable periods not to exceed thirty days, when authorized by the Board of Governors of the Federal Reserve System pursuant to an affirmative vote of not less than five members, for its own account (with discretion, in cases where it seems desirable, to issue participations to one or more Federal Reserve Banks) such amounts of special short-term certificates of indebtedness as may be necessary from time to time for the temporary accommodation of the Treasury, provided that the rate charged on such certificates shall be a rate of 1/4 of 1 percent below the discount rate of the Federal Reserve Bank of New York at the time of such purchases and provided that the total amount of such certificates held at any one time by the Federal Reserve Banks shall not exceed $2 billion. Votes for this action: Messrs. Volcker, Balles, Black, Coldwell, Kimbrel, Mayo, Partee, Rice, Schultz, Mrs. Teeters, Messrs. Wallich, and Timlen. Votes against this action: None. (Mr. Timlen voted as an alternate member.) Records of policy actions taken by the Federal Open Market Committee at each meeting, in the form in which they will appear in the Board's Annual Report, are made available a few days after the next regularly scheduled meeting and are subsequently published in the BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

849 Law Department Statutes, regulations, interpretations, and decisions ADOPTION OF NEW REGULATION S (a) "Financial institution" means any office of a bank, savings bank, card issuer as defined in The Board of Governors of the Federal Reserve section 103 of the Consumers Credit Protection System has adopted a new regulation required by Act (15 U.S.C. 1602(n)), industrial loan comsection 1115 of the Right to Financial Privacy Act pany, trust company, savings and loan, building (12 U.S.C. § 3415) that provides rates and condiand loan, or homestead association (including cotions for reimbursement of reasonably necessary operative banks), credit union, or consumer ficosts, directly incurred by financial institutions in nance institution, located in any state or territory assembling or providing customer financial records of the United States, the District of Columbia, to a federal government authority. Puerto Rico, Guam, American Samoa, or the Effective October 1, 1979, the Board amends Virgin Islands. Title 12 of the Code of Federal Regulations by (b) "Financial record" means an original of, adding a new Part 219 (to be known as Regulation a copy of, or information known to have been S) to read as follows: derived from, any record held by a financial institution pertaining to a customer's relationship with REGULATION S the financial institution. Part 219—Reimbursement to Financial (c) "Government authority" means any agency Institutions for Assembling or Providing or department of the United States, or any officer, Financial Records employee or agent thereof. (d) "Person" means an individual or a partner- Section ship of five or fewer individuals. 219.1 Authority, Purpose and Scope (e) "Customer" means any person or author- 219.2 Definitions ized representative of that person who utilized or 219.3 Cost Reimbursement is utilizing any service of a financial institution, 219.4 Exceptions or for whom a financial institution is acting or has 219.5 Conditions for Payment acted as a fiduciary, in relation to an account 219.6 Payment Procedures maintained in the person's name. "Customer" 219.7 Effective Date does not include corporations or partnerships comprised of more than five persons. Section 219.1— Authority, Purpose, and Scope (f) "Directly incurred costs" means costs incurred solely and necessarily as a consequence of This Part is issued by the Board of Governors searching for, reproducing or transporting books, of the Federal Reserve System under section 1115 papers, records, or other data, in order to comply of the Right to Financial Privacy Act of 1978 (the with legal process or a formal written request or "Act") (12 U.S.C. § 3415). It establishes the a customer's authorization to produce a customer's rates and conditions for reimbursement of reason- financial records. The term does not include any ably necessary costs directly incurred by financial allocation of fixed costs (overhead, equipment, institutions in assembling or providing customer depreciation, etc.). If a financial institution has financial records to a government authority. financial records that are stored at an independent storage facility that charges a fee to search for, Section 219.2—Definitions reproduce, or transport particular records re- For the purposes of this Part, the following quested, these costs are considered to be directly definitions shall apply: incurred by the financial institution. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

850 Federal Reserve Bulletin • November 1979 Section 219.3—Cost Reimbursement bursement under the Act for costs incurred in assembling or providing the following financial records Except as hereinafter provided, a government or information: authority requiring or requesting access to financial records pertaining to a customer shall pay to (a) Security interests, bankruptcy claims, debt the financial institution that assembles or provides collection. Any financial records provided as an the financial records a fee for reimbursement of incident to perfecting a security interest, proving reasonably necessary costs which have been di- a claim in bankruptcy, or otherwise collecting on rectly incurred according to the following sched- a debt owing either to the financial institution itself ule: or in its role as a fiduciary. (a) Search and processing costs. (1) Reim- (b) Government loan programs. Financial recbursement of search and processing costs shall be ords provided in connection with a government the total amount of personnel direct time incurred authority's consideration or administration of asin locating and retrieving, reproducing, packaging, sistance to a customer in the form of a government and preparing financial records for shipment. (2) loan, loan guaranty, or loan insurance program; The rate for search and processing costs is $10 or as an incident to processing an application for per hour per person, computed on the basis of assistance to a customer in the form of a govern- $2.50 per quarter hour or fraction thereof, and is ment loan, loan guaranty, or loan insurance limited to the total amount of personnel time spent agreement; or as an incident to processing a default in locating and retrieving documents or informa- on, or administering, a government-guaranteed or tion or reproducing or packaging and preparing insured loan, as necessary to permit a responsible documents for shipment where required or re- government authority to carry out its responquested by a government authority. Specific sa- sibilities under the loan, loan guaranty, or loan laries of such persons shall not be included in insurance agreement. search costs. In addition, search and processing costs do not include salaries, fees, or similar costs (c) Nonidentifiable information. Financial recfor analysis of material or for managerial or legal ords that are not identified with or identifiable as advice, expertise, research, or time spent for any being derived from the financial records of a parof these activities. If itemized separately, search ticular customer. and processing costs may include the actual cost (d) Financial supervisory agencies. Financial of extracting information stored by computer in records disclosed to a financial supervisory agency the format in which it is normally produced, based in the exercise of its supervisory, regulatory, or on computer time and necessary supplies; howmonetary functions with respect to a financial ever, personnel time for computer search may be institution. paid for only at the rate specified in this paragraph. (e) Internal Revenue summons. Financial rec- (b) Reproduction costs. (1) Reimbursement for ords disclosed in accordance with procedures aureproduction costs shall be for costs incurred in thorized by the Internal Revenue Code. making copies of documents required or requested. (2) The rate for reproduction costs for making (f) Federally required reports. Financial reccopies of required or requested documents is 15 ords required to be reported in accordance with cents for each page, including copies produced by any federal statute or rule promulgated thereunder reader/printer reproduction processes. Photo- (such as the Bank Secrecy Act). graphs, films, and other materials are reimbursed at actual cost. (g) Government civil or criminal litigation. Financial records sought by a government authority (c) Transportation costs. Reimbursement for under the Federal Rules of Civil or Criminal Protransportation costs shall be for (1) necessary cedure or comparable rules of other courts in costs, directly incurred, to transport personnel to connection with litigation to which the government locate and retrieve the information required or authority and the customer are parties. requested; and (2) necessary costs, directly incurred solely by the need to convey the required (h) Administrative agency subpoenas. Finanor requested material to the place of examination. cial records sought by a government authority pursuant to an administrative subpoena issued by Section 219.4—Exemptions an administrative law judge in an adjudicatory A financial institution is not entitled to reim- proceeding subject to section 554 of Title 5, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 851 United States Code, and to which the government financial institution satisfactorily complies with the authority and the customer are parties. legal process or formal written request, or customer authorization, except that in the case where (i) Identity of accounts in limited circumthe legal process or formal written request is stances. Financial information sought by a govwithdrawn, or the customer authorization is reernment authority, in accordance with the Right voked, or where the customer successfully chalto Financial Privacy Act procedures and for a lenges access by or disclosure to a government legitimate law enforcement inquiry, and limited authority, the financial institution shall be reimonly to the name, address, account number, and bursed for reasonably necessary costs directly intype of account of any customer or ascertainable curred in assembling financial records required or group of customers associated (1) with a financial requested to be produced prior to the time that transaction or class of financial transactions, or (2) the government authority notifies the institution with a foreign country or subdivision thereof in that the legal process or request is withdrawn or the case of a government authority exercising defeated, or that the customer has revoked his or financial controls over foreign accounts in the her authorization. United States under section 5(b) of the Trading With the Enemy Act (50 U.S.C. App. 5(b)); the (d) Itemized bill or invoice. No payment shall International Emergency Economic Powers Act be made unless the financial institution submits an (Title II, Public Law 95-223); or section 5 of the itemized bill or invoice showing specific details United Nations Participation Act (22 U.S.C. concerning the search and processing, reproduc- 287(c)). tion, and transportation costs. (j) Investigation of a financial institution or its Section 219.6—Payment Procedures noncustomers. Financial records sought by a gov- (a) Notice to submit invoice. Promptly followernment authority in connection with a lawful ing a government authority's service of legal proceeding, investigation, examination, or inspecprocess or request, the government authority shall tion directed at the financial institution in possesnotify the financial institution that an itemized bill sion of such records or at a legal entity which or invoice must be submitted for payment and shall is not a customer. furnish an office address for this purpose. (k) General Accounting Office requests. Finan- (b) Special notice. If a government authority cial records sought by the General Accounting withdraws the legal process or formal written Office pursuant to an authorized proceeding, inrequest, or if the customer revokes his or her vestigation, examination or audit directed at a authorization, or if the legal process or request government authority. has been successfully challenged by the customer, (1) Securities and Exchange Commission re- the government authority shall promptly notify the quests. Until November 10, 1980, financial rec- financial institution of these facts, and shall also ords sought by the Securities and Exchange Com- notify the financial institution that the itemized bill mission. or invoice must be submitted for payment of costs incurred prior to the time that the financial institution receives this notice. Section 219.5— Conditions for Payment Section 219.7—Effective Date (a) Limitations. Payment for reasonably neces- This regulation shall become effective October sary, directly incurred costs to financial institutions 1, 1979. shall be limited to material required or requested. (b) Separate consideration of component costs. Payment shall be made only for costs that are both directly incurred and reasonably necessary. In de- AMENDMENT TO REGULATION Z termining whether costs are reasonably necessary, Effective March 31, 1980, the Board amends search and processing, reproduction, and trans- § 226.9(g) of Regulation Z (12 CFR Part 226) by portation costs shall be considered separately. deleting § 226.9(g)(6). It also revokes Board In- (c) Compliance with legal process, request, or terpretation § 226.904 and Official Staff Interpreauthorization. No payment shall be made until the- tation FC-0159. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

852 Federal Reserve Bulletin • November 1979 AMENDMENTS TO RULES REGARDING by deleting subparagraphs (23), (24), (28), (29), DELEGATION OF AUTHORITY (30), (31), (32), (33), and (52), and footnotes (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), and The Board of Governors has amended its Rules (12) and renumbering subparagraphs (25), (26), Regarding Delegation of Authority to expand the (27), (34), (35), (36), (37), (38), (39), (40), (41), scope of authority previously delegated for bank (42), (43), (44), (45), (46), (47), (48), (49), (50), holding company formations, bank share acquisi- (51), (53), (54), (55), and (56) as subparagraphs tions by existing bank holding companies, mergers (23), (24), (25), (26), (27), (28), (29), (30), (31), of bank holding companies, acquisitions and re- (32), (33), (34), (35), (36), (37), (38), (39), (40), tentions of companies engaged in nonbanking ac- (41), (42), (43), (44), (45), (46), and (47), retivities by bank holding companies, bank holding spectively, and amending subparagraph (22) to companies engaging de novo in activities deter- provide as follows: mined by the Board to be permissible for bank holding companies and bank mergers. Section 265.2—Specific Functions Delegated Effective September 21, 1979, Rules Regarding to Board Employees and to Federal Reserve Delegation of Authority is amended as follows: Banks. 1. Section 265.2(a) is amended by deleting subparagraphs (3), (4), (5), (6), and (7), renum- >!=: % ^ ^ bering subparagraphs (8), (9), (10), (11), (12), (f) Each Federal Reserve Bank is authorized as (13), (14), (15), (16), (17), and (18) as subpara- to member banks or other indicated organizations graphs (3), (4), (5), (6), (7), (8), (9), (10), (11), headquartered in its district: (12), and (13), respectively, and amending sub- * * * * * paragraph (2) to provide as follows: (22) Under the provisions of § 18(c) of the Federal Deposit Insurance Act (12 U.S.C. Section 265.2—Specific Functions Delegated to 1828(c)), §§ 3(a) and 4(c)(8) of the Bank Holding Board Employees and to Federal Reserve Banks Company Act (12 U.S.C. 1842(a) and 1843(c)(8)) (a) The Secretary of the Board (or, in the Sec- and §§ 225.3(b) and (c), and §§ 225.4(a) and (b) retary's absence, the Acting Secretary) is author- of Regulation Y (12 CFR 225.3(b) and (c), and ized: 225.4(a) and (b)), to approve applications requiring prior approval of the Board, and under the provisions of § 18(c)(4) of the Federal Deposit (2) Under the provisions of §§ 18(c) and Insurance Act (12 U.S.C. 1828(c)(4)), to furnish 18(c)(4) of the Federal Deposit Insurance Act (12 to the Comptroller of the Currency and the Federal U.S.C. 1828(c) and 1828(c)(4)), §§ 3(a) and Deposit Insurance Corporation reports on compet- 4(c)(8) of the Bank Holding Company Act (12 itive factors involved in a bank merger required U.S.C. 1842(a) and 1843(c)(8)) and §§ 225.3(b) to be approved by one of those agencies, unless and (c), and §§ 225.4(a) and (b) of Regulation one or more of the following conditions is present: Y (12 CFR 225.3(b) and (c), and 225.4(a) and (i) a member of the Board has indicated an (b)), to furnish reports on competitive factors objection prior to the Reserve Bank's action; or involved in a bank merger to the Comptroller of (ii) the Board has indicated that such delegated the Currency and the Federal Deposit Insurance authority shall not be exercised by the Reserve Corporation, and to approve applications the Re- Bank in whole or in part; or serve Bank could approve under subparagraph (2) (iii) a written substantive objection to the apof paragraph (f) of this section, except for the fact plication has been properly made; or that condition (ii) of that subparagraph has not (iv) the application raises a significant policy been met because a director or senior officer of issue or legal question on which the Board has any holding company, bank, or company to be not established its position; or acquired or retained, involved in the transaction, in formations, bank acquisitions or mergers: is a director of a Federal Reserve Bank or branch. (v) the proposed transaction involves two or 2. In order to accomplish this delegation, more banking organizations: § 265.2(c) is amended by deleting subparagraph (a) that rank among a State's ten largest bank- (16) and renumbering subparagraphs (17), (18), ing organizations in terms of total domestic bank- (19), (20), (21), (22), (23), (24), and (25), as ing assets; or subparagraphs (16), (17), (18), (19), (20), (21), (b) each of which has more than $100 million (22), (23), and (24). Section 265.2(f) is amended of total deposits in banking offices in the same Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 853 local banking market that, after consummation of Subpart B—Rules and Procedures for the proposal, would control over 5 per cent of total Assessment and Collection of Civil Penalties deposits in banking offices in that local market; Sec. 263.22—Purpose and scope or in nonbank acquisitions: Sec. 263.23—Notice of assessment of civil pen- (vi) the nonbanking activities involved do not alty clearly fall within activities that the Board has Sec. 263.24—Opportunity for informal proceeddesignated as permissible for bank holding coming panies under § 225.4(a) of Regulation Y; or Sec. 263.25—Relevant considerations for assess- (vii) the proposal would involve the acquisition ment of civil penalty by a banking organization that has total domestic Sec. 263.26—Request for formal hearing on asbanking assets of $1 billion or more of a nonsessment banking organization that appears to have a sig- Sec. 263.27—Hearing order on assessment nificant presence in a permissible nonbanking activity.2 Sec. 263.28—Assessment order Sec. 263.29—Payment of civil penalty Effective date: This amendment is effective on all applications pending on September 21 and on Subpart C—Rules and Procedures Applicable to all future applications. Suspension or Removal of a Bank Official Where a Felony is Charged or Proven REVISION OF RULES OF PRACTICE FOR HEARINGS Sec. 263.30—Purpose and scope The Board of Governors of the Federal Reserve Sec. 263.31—Notice or order of suspension, re- System has amended its formerly entitled "Rules moval or prohibition of Practice for Formal Hearings," to incorporate (a) Grounds certain changes in the Board's hearing procedures. (b) Contents Effective September 24, 1979: (1) the title of (c) Service the Board's Rules of Practice for Formal Hearings Sec. 263.32—Request for informal hearing (12 C.F.R. Part 263) is revised to read "Part Sec. 263.33—Order for informal hearing 263—Rules of Practice for Hearings", and (2) Part (a) Issuance of hearing order 263 is revised as follows: (b) Waiver of oral hearing (c) Hearing procedures Part 263—Rules of Practice for Hearings (d) Authority of presiding officer (e) Recommendation of presiding officer Subpart A—Rules of Practice for Formal Hearings Sec. 263.34—Decision of the Board Sec. 263.1—Authority, purpose, and scope Subpart A—Rules of Practice for Formal (a) Authority Hearings (b) Purpose and scope Sec. 263.2—Definitions Section 263.1—Authority, Purpose, and Scope Sec. 263.3—Appearance and practice before the Board (a) Authority. This Part is issued under sections ll(i), 19, and 29 of the Federal Reserve Act, as amended (12 U.S.C. 248(i), 504, and (b) Conduct during hearings 505); sections 5(b) and 8(b) of the Bank Holding Company Act of 1956, as amended (12 U.S.C. 1844(b) and 1847(b)); section 106(b)(2)(F) of the Sec. 263.6—Conduct of hearings Bank Holding Company Act Amendments of 1970, as amended (12 U.S.C. 1972(2)(F)); sec- * * * tions 7(j) and 8 of the Federal Deposit Insurance (h) Ex parte communications Act, as amended (12 U.S.C. 1817(j) and 1818); * * * section 13 of the International Banking Act of 1978 (12 U.S.C. 3108); and section 15B(c)(5) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78o-4). 2. While other situations may involve the issue of significant presence, the Board regards, as a general guideline, any (b) Purpose and scope. This subpart prescribes company that ranks among the 20 largest independent firms in any industry as having a significant presence. rules of practice and procedure governing adjudi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

854 Federal Reserve Bulletin • November 1979 cations as to which a formal hearing is required (b) "Party" means a person or agency named by law or is for other reason ordered by the or admitted as a party, or any person or agency Board. These adjudications include: who has filed a written request and is entitled a^ (1) suspension of a member bank from the use of right to be admitted as a party. A person or of credit facilities of the Federal Reserve System agency may be admitted for a limited purpose under section 4 of the Federal Reserve Act (12 without being regarded as a party. U.S.C. 301); (c) 44Secretary" means the Secretary of the (2) termination of a bank's membership in the Board of Governors of the Federal Reserve Sys- Federal Reserve System under section 9 of the tem. Federal Reserve Act (12 U.S.C. 327); (3) issuance of a cease-and-desist order under Section 263.3— section 11 of the Clayton Act (15 U.S.C. 21); Appearance and practice before the Board (4) issuance of a cease-and-desist order or a re- * * * ** moval or suspension order under section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818); (b) Conduct during hearings. All participants (5) adjudications under sections 2, 3, or 4 of in a hearing, or a conference held in connection the Bank Holding Company Act (12 U.S.C. therewith, shall conduct themselves with dignity 1841, 1842, or 1843); and in an orderly and ethical manner. The attor- (6) issuance of a divestiture order against a ney or other representative of a party shall make bank holding company under section 5(e) of the every effort to restrain a client from improper Bank Holding Company Act (12 U.S.C. conduct in connection with a proceeding. Im- 1844(e)); proper language or conduct, refusal to comply (7) disapproval of a proposed acquisition of with directions, continued use of dilatory tactics, control of a State member bank or a bank holding or refusal to adhere to reasonable standards of orcompany under section 7(j) of the Federal Deposit derly and ethical conduct constitute grounds for Insurance Act (12 U.S.C. 1817(j)); immediate exclusion from the proceeding at the (8) imposition of sanctions upon any municipal direction of the presiding officer. securities dealer for which the Board is the appropriate regulatory agency, or upon any person as- * * * ** sociated or seeking to become associated with Section 263.6—Conduct of hearings such a municipal securities dealer, under section 15B(c)(5) of the Securities Exchange Act of 1934 (a) Designation of presiding officer. (15 U.S.C. 78o-4); (1) When evidence is to be taken in a hearing, (9) formal adjudications on bank merger appli- the Board or, when duly designated by the Board cations under section 18(c) of the Federal Deposit for that purpose, one or more of its members, an Insurance Act (12 U.S.C. 1828(c)); and administrative law judge, or other hearing of- (10) assessment of a civil money penalty for ficers) lawfully appointed by the Board may prea violation of any provision of: the Bank Holding side at the hearing. Unless otherwise provided in Company Act of 1956, as amended, or any order the notice of hearing, all hearings for the taking or regulation issued thereunder (12 U.S.C. of evidence shall be conducted as hereinafter pro- 1847(b)); sections 19, 22, or 23A of the Federal vided. Reserve Act, or any order or regulation issued (2) Except as authorized by law, the presiding thereunder (12 U.S.C. 504, 505); the terms of a officer shall not be responsible to, or subject to final cease-and-desist order issued under the Fed- the supervision or direction of, any officer, emeral Deposit Insurance Act (12 U.S.C. ployee, or agent of the Board engaged in the per- 1818(i)(2)); or the provisions of 106(b)(2) of the formance of investigative or prosecuting func- Bank Holding Company Act Amendments of tions. 1970, as amended (12 U.S.C. 1972(2)(F)). (3) A designated presiding officer who deems himself disqualified may at any time withdraw. Upon receipt of a timely and sufficient affidavit Section 263.2—Definitions of personal bias or disqualification of such presiding officer, the Board will rule on the matter as As used in this Part: a part of the record and decision in the case. (a) "Member bank" means any bank that is a member of the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 855 (h) Ex parte communications. For the purposes given for all parties to participate. of this section, "ex parte communication" means an oral or written communication that is not on Section 263.7—Subpenas the public record and for which reasonable prior notice to all parties has not been given, but does not include requests for status reports. The fol- (c) Service of subpena. lowing prohibitions against any ex parte com- (1) Service of a subpena may be made by permunication apply from the time of issuance of a sonal service or, except as otherwise required by notice for a formal hearing in the proceeding or law, by registered mail addressed to the last from the time the person responsible for the comknown address of the person named in the submunication has knowledge that a notice for a pena and by tendering the fees for one day's athearing will be issued. tendance and mileage as specified in paragraph (d) (1) No member of the Board nor the presiding of this section. In making personal service of a officer nor any other person who is, or may reasubpena, the original shall be exhibited to, and sonably be expected to be, involved in the decia copy thereof left with, the person named in the sional process in a proceeding conducted under subpena. Service of the subpena and tender of this subpart shall make, or knowingly cause to be fees to a natural person may also be made by made, an ex parte communication relevant to the leaving a copy of the subpena and fees at the permerits of the proceeding to any interested person son's dwelling place or usual place of abode with outside the Federal Reserve System. Any member someone of suitable age or discretion. When the of the Board, the presiding officer, or other person person to be served is not a natural person, delivwho receives, makes, or knowingly causes to be ery of a copy of the subpena and tender of the made any ex parte communication prohibited by fees may be effected by handing them to a registhis paragraph shall place on the public record of tered agent for service or to an officer, director, the proceeding: or agent in charge of any office of the person, (i) all such written communications; or by mailing them by registered mail to such rep- (ii) memoranda stating the substance of all resentative at that person's last known address. such oral communications; and (2) Service made by a United States marshal (iii) all written responses, and memoranda stator his deputy shall be evidenced by that person's ing the substance of all oral responses, to the mareturn on the original subpena. If made by any terials described in clauses (i) and (ii) of this senother person, that person shall make affidavit tence. thereto, describing the manner in which service (2) No interested person outside the Federal was made, and return the affidavit on or with the Reserve System shall make, or knowingly cause original subpena. In case of failure to make servto be made, an ex parte communication relevant ice, the reasons for the failure shall be stated on to the merits of a proceeding conducted under this the original subpena. The original subpena, bearsubpart to any member of the Board, to the pre- ing or accompanied by the required return, affidasiding officer or to anyone who is, or may reason- vit, or statement, shall be returned without delay ably be expected to be, involved in the decisional to the Secretary or, if so directed on the subpena, process in the proceeding. Upon receipt of a com- to the presiding officer before whom the person munication in violation of this paragraph, the named in the subpoena is required to appear. Board or the presiding officer may require the party responsible for the ex parte communication (d) Attendance of witnesses. to show cause why that party's claim or interest (1) The attendance of witnesses and the proin the proceeding should not be dismissed, de- duction of documents pursuant to a subpena isnied, disregarded, or otherwise adversely affected sued in connection with a hearing under this subon account of the violation. To the extent consist- part may be required from any State or territory ent with the interests of justice and the policy of or any other place subject to the jurisdiction of the statute under which the hearing is being held, the United States at any designated place where a knowing violation of this paragraph may consti- the hearing is being conducted. Any person who tute sufficient grounds for a decision adverse to is compelled to appear and testify, or who appears the responsible party. and testifies by request or permission, may be ac- (3) Except as authorized by law, the presiding companied, represented, or advised by counsel. officer shall not consult any person or party on (2) Subpenaed witnesses shall be paid the same any fact in issue unless notice and opportunity is fees and mileage that are paid witnesses in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

856 Federal Reserve Bulletin • November 1979 district courts of the United States. When a sub- Section 263.22—Purpose and scope pena is issued upon the Board's own motion or The rules and procedures specified in this subat the request of Board counsel, fees and mileage part and in Subpart A are applicable to proceedings need not be tendered at the time of service of the by the Board to assess and collect civil money subpena. Fees required by this paragraph shall be penalties for a violation of: (a) the terms of a final paid by the person upon whose application the cease-and-desist order issued under the Federal subpena is issued. Deposit Insurance Act (12 U.S.C. 1818(i)(2)); (b) the provisions of sections 19, 22, or 23A of the Section 263.8—Depositions Federal Reserve Act, or any regulation or order issued thereunder, (12 U.S.C. 504 and 505); (c) any provision of the Bank Holding Company Act (c) Procedure on deposition; objections. of 1956, as amended, or any regulation or order (1) Each witness testifying upon oral deposi- issued thereunder, (12 U.S.C. 1847(b); or (d) the tion shall be duly sworn or shall affirm, and Board provisions of section 106(b)(2) of the Bank Holdcounsel and any adverse party shall have the right ing Company Act Amendments of 1970, as to cross-examine the witness. Objections to ques- amended (12 U.S.C. 1972(2)(F)). The rules and tions or documents shall be in short form, stating procedures of this subpart do not apply to the the grounds of objection relied upon. The person assessment of a civil penalty for a violation of recording the deposition shall not have any au- the Change in Bank Control Act, 12 U.S.C. thority to rule upon questions of competency, ma- 1817(j). A civil money penalty for a violation of teriality, or relevancy of evidence. Evidence ob- that statute may be assessed in accordance with jected to shall be taken subject to the objection. the procedures set forth in 12 U.S.C. 1817(j)(15). Failure to object to questions or evidence shall not be deemed a waiver unless the ground of the Section 263.23— objection is one which might have been obviated Notice of assessment of civil penalty or removed if presented at the time of the question or submission of evidence. Civil penalty proceedings commence with the (2) All questions, answers, and objections (but issuance by the Board of a notice of assessment not including argument or debate) shall be re- of civil penalty. The notice of assessment shall corded by, or under the direction of, the officer state: (a) the legal authority for the assessment; before whom the deposition is taken. The deposi- (b) the amount of the civil penalty being assessed; tion shall be subscribed to by the witness, unless (c) the date by which the civil penalty shall be the parties by stipulation waive the signing or paid; (d) the matters of fact or law constituting unless the witness is physically unable to sign, the grounds for assessment of the civil penalty; cannot be found, or refuses to sign. The person (e) the right of the person being assessed to a forrecording the deposition shall certify the transcript mal hearing to challenge the assessment; and (f) of the deposition as true and complete. If the dep- the time limit to request such a formal hearing. osition is not subscribed to by the witness, the The notice of assessment may be served upon the person recording the testimony shall state this fact person being assessed by personal service, by regand the reason therefor on the record. istered or certified mail to the person's last known (3) The officer before whom the deposition is address, or by other appropriate means. Such taken shall promptly deliver, or send by registered service constitutes issuance of the notice. mail, the original of the deposition, together with the original of all exhibits, to the Secretary of the Section 263.24— Board unless otherwise directed in the order au- Opportunity for informal proceeding thorizing the taking of the deposition or in the notice of its issuance. Interested parties shall make In the sole discretion of the Board's General their own arrangements with the person recording Counsel, the General Counsel may, prior to the the testimony for copies of the deposition and ex- issuance by the Board of a notice of assessment hibits. of civil penalty, advise the affected person that the issuance of a notice of assessment of civil penalty is being considered and the reasons and authority for the proposed assessment. The Gen- Subpart B—Rules and Procedures for eral Counsel may provide the person an opportu- Assessment and Collection of Civil Penalties nity to present written materials or request a con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 857 ference with members of the Board's staff to issue an order of assessment of civil penalty. In show that the penalty should not be assessed or, its order, the Board may reduce the amount of if assessed, should be reduced in amount. the penalty specified in the notice of assessment. Any party afforded a hearing under this subpart who does not appear at the hearing (personally Section 263.25—Relevant considerations for or by a duly authorized representative) shall be assessment of civil penalty considered to have waived the right to a formal In determining the amount of the penalty to be hearing and to have consented to the assessment assessed, the Board will take into account the ap- of the civil penalty specified in the notice of aspropriateness of the penalty with respect to the sessment. financial resources and good faith of the person (b) An assessment order is effective immedicharged, the gravity of the violation, the history ately upon issuance, or upon such other date as of previous violations, the economic benefit may be specified therein, and shall remain effecderived by the person from the violation, and tive and enforceable until it is stayed, modified, such other matters as justice may require. terminated, or set aside by action of the Board or a reviewing court. (c) An assessment order may be served by per- Section 263.26— sonal service, by registered or certified mail to the Request for formal hearing on assessment last known address of the person being assessed, or by other appropriate means. A person being assessed may request a formal hearing to challenge the assessment of a civil penalty. The request must be made within ten busi- Section 263.29—Payment of civil penalty ness days after issuance of the notice of assess- (a) The date designated in the notice of assessment, and any such request must be filed in writment for payment of the civil penalty will noring with the Secretary, Board of Governors of the mally be 60 days from the issuance of the notice. Federal Reserve System, Washington, D.C. If, however, the Board finds, in a specific case, 20551. If a request for a formal hearing is not that the purposes of the authorizing statute would filed within this ten-day period, the person being be better served if the 60 day period is changed, assessed shall be deemed to have waived the right the Board may shorten or lengthen the period or to a formal hearing, and the notice of assessment make the civil penalty payable immediately upon shall constitute a final and unappealable assessreceipt of the notice of assessment. If a timely ment order. request for a formal hearing to challenge an assessment of civil penalty is filed, payment of the Section 262.37—Hearing order on assessment penalty shall not be required unless and until the Board issues a final order of assessment following After the receipt of a timely request for a hearthe hearing. If an assessment order is issued, it ing with respect to the assessment of a civil penwill specify the date by which the civil penalty alty, the Secretary will promptly issue an order should be paid or collected. directing a hearing to commence within 30 days (b) Checks in payment of civil penalties should from the date of the hearing order at such place be made payable to the "Board of Governors of as the Secretary may designate with due regard the Federal Reserve System." Upon collection, for the interests of all parties. The hearing order the Board shall forward the amount of the penalty may require the person requesting the hearing to to the Treasury of the United States. file an answer as prescribed in section 263.5 of Subpart A. The procedures of the Administrative Subpart C—Rules and Procedures Applicable to Procedure Act (5 U.S.C. §§ 554-557) and Sub- Suspension or Removal of a Bank Official part A of these Rules shall apply to the hearing. Where a Felony is Charged or Proven Section 263.30—Purpose and scope Section 263.28—Assessment order (a) In the event of consent of the parties con- The rules and procedures set forth in this subpart cerned to an assessment, or if, upon the record apply to informal hearings afforded to any officer, made at a hearing ordered under this subpart, the director, or other person participating in the con- Board finds that the grounds for having assessed duct of the affairs of a State member bank ("bank the penalty have been established, the Board may official"), who has been suspended or removed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

858 Federal Reserve Bulletin • November 1979 from office or prohibited from further participation ficial shall immediately cease service to the bank in any manner in the conduct of the bank's affairs or further participation in any manner in the conby a notice or order issued by the Board upon duct of the affairs of the bank. A notice or order the grounds set forth in section 8(g) of the Federal of suspension, removal, or prohibition may be Deposit Insurance Act (12 U.S.C. 1818(g)). served by personal service, by registered or certified mail to the last known address of the person being served, or by other appropriate means. Section 263.31—Notice or order of suspension, removal, or prohibition Section 263.32—Request for informal hearing (a) Grounds. The Board may suspend a bank official from office or prohibit a bank official from A bank official who is suspended or removed further participation in any manner in the conduct from office or prohibited from participation in the of a bank's affairs when the person is charged in bank's affairs may request an informal hearing. any information, indictment, or complaint author- The request shall be filed in writing with the Secized by a United States attorney with the commis- retary, Board of Governors of the Federal Reserve sion of, or participation in, a crime involving dis- System, Washington, D.C. 20551. The request honesty or breach of trust that is punishable by shall state with particularity the relief desired and imprisonment for a term exceeding one year the grounds therefor and shall include, when under State or Federal law. The Board may re- available, supporting evidence. If the bank offimove a bank official from office or prohibit a bank cial desires to present oral testimony or witnesses official from further participation in any manner at the hearing, the bank official must include a in the conduct of a bank's affairs when the person request to do so with the request for informal is convicted of such an offense and the conviction hearing. The request to present oral testimony or is not subject to further direct appellate review. witnesses should specify the names of the wit- The Board may suspend or remove a bank official nesses and the general nature of their expected or prohibit a bank official from participation in a testimony. bank's affairs in these circumstances if the Board finds that continued service to the bank or partici- Section 263.33—Order for informal hearing pation in its affairs by the bank official may pose a threat to the interests of the bank's depositors (a) Issuance of hearing order. Upon receipt of or may threaten to impair public confidence in the a timely request for an informal hearing, the Secbank. retary will promptly issue an order directing an informal hearing to commence within 30 days of (b) Contents. The Board commences a suspen- the receipt of the request. At the request of the sion, removal, or prohibition action with the is- bank official, the Secretary may order the hearing suance, and service upon a bank official, of a no- to commence at a time more than 30 days after tice of suspension from office, or order of removal the receipt of the request for hearing. The hearing from office, or notice or order of prohibition from shall be held in Washington, D.C., or at such participation in the bank's affairs. Such a notice other place as may be designated by the Secreor order shall indicate the basis for the suspen- tary, before presiding officers designated by the sion, removal, or prohibition and shall inform the Secretary to conduct the hearing. The presiding bank official of the right to request in writing, officers normally will include representatives from within 30 days of service of the notice or order, the Board's Legal Division and Banking Supervian opportunity to show at an informal hearing that sion and Regulation Division and from the approcontinued service to, or participation in the con- priate Federal Reserve Bank. duct of the affairs of, the bank does not and is not likely to pose a threat to the interests of the (b) Waiver of oral hearing. A bank official bank's depositors or threaten to impair public may waive in writing the official's right to an oral confidence in the bank. A notice of suspension hearing and instead elect to have the matter deteror prohibition shall remain in effect until the crim- mined by the Board solely on the basis of written inal charge upon which the notice is based is fi- submissions. nally disposed of or until the notice is terminated (c) Hearing procedures. by the Board. (i) The bank official may appear at the hearing (c) Service. The notice or order shall be served personally, through counsel, or personally with upon the bank concerned, whereupon the bank of- counsel. The bank official shall have the right to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 859 introduce relevant written materials and to present of a decision favorable to the bank official, the an oral argument. The bank official may introduce Board shall take prompt action to rescind or othoral testimony and present witnesses only if ex- erwise modify the order of suspension, removal pressly authorized by the Board or the Secretary. or prohibition. Neither the formal rules of evidence nor the adju- (b) In deciding the question of suspension, redicative procedures of the Administrative Proce- moval, or prohibition under this subpart, the dure Act (5 U.S.C. §§ 554-557) or Subpart A of Board will not rule on the question of the guilt these Rules shall apply to the informal hearing or- or innocence of the individual with respect to the dered under this subpart unless the Board orders crime with which the individual has been that they apply. charged. (ii) The proceedings shall be recorded and a transcript shall be furnished to the bank official upon request and after the payment of the cost FEDERAL OPEN MARKET COMMITTEE thereof. Witnesses need not be sworn, unless spe- AMENDMENT TO RULES OF PROCEDURE cifically requested by a party or the presiding officers. The presiding officers may ask questions The Federal Open Market Committee of the of any witness. Federal Reserve System has amended its Rules of (iii) The presiding officers may order the rec- Procedure to delete references to Deputy Managord to be kept open for a reasonable period fol- ers. lowing the hearing (normally 5 business days), Effective August 14, 1979, section 272.3 of during which time additional submissions to the Rules of Procedure is amended to read as follows: record may be made. Thereafter, the record shall Section 272.3—Meetings be closed. (d) Authority of presiding officers. In the course of or in connection with any proceeding under this subpart, the Board or the presiding of- (d) Attendance at meetings. Attendance at ficers are authorized to administer oaths and affir- Committee meetings is restricted to members and mations, to take or cause to be taken depositions, alternate members of the Committee, the Presito issue, revoke, quash, or modify subpenas and dents of Federal Reserve Banks who are not at subpenas duces tecum, and, for the enforcement the time members or alternates, staff officers of thereof, to apply to an appropriate United States the Committee, the Managers, and such other district court. All action relating to depositions advisers as the Committee may invite from time and subpenas shall be in accordance with the rules to time. provided in sections 263.7 and 263.8 of Subpart (e) Meeting agendas. The Secretary, in consul- A of these Rules. tation with the Chairman, prepares an agenda of (e) Recommendation of presiding officers. The matters to be discussed at each meeting and the presiding officers shall make a recommendation to Secretary transmits the agenda to the members of the Board concerning the notice or order of sus- the Committee within a reasonable time in advance pension, removal, or prohibition within 20 calen- of such meeting. In general, the agendas include dar days following the close of the record on the approval of minutes of actions; reports by the hearing. Managers on open market operations since the previous meeting, and ratification by the Commit- Section 263.34—Decision of the Board tee of such operations; reports by economists on, and Committee discussion of, the economic and (a) Within 60 calendar days following the financial situation and outlook; Committee discusclose of the record on the hearing, or receipt of sion of monetary policy and action with respect written submissions where a hearing has been thereto; and such other matters as may be considwaived, the Board shall notify the bank official ered necessary. whether the notice of suspension or prohibition This action is pursuant to and in accordance with will be continued, terminated, or otherwise modi- the provisions of section 552 of Title 5 of the fied, or whether the order of removal or prohibi- United States Code. tion will be rescinded or otherwise modified. The The provisions of section 553 of Title 5, United notification shall contain a statement of the basis States Code, relating to notice and public particifor any adverse decision by the Board. In the case pation and to deferred effective dates, are not Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

860 Federal Reserve Bulletin • November 1979 followed in connection with the adoption of this the state law is more protective of an applicant. action because the rules involved are procedural If the Board determines that a state law is not in nature and accordingly do not constitute sub- inconsistent, however, then consideration of the stantive rules subject to the requirements of such "more protective" issue is not required. section. In resolving the inconsistency issue, the first and key question is whether the New Jersey statute requires or permits a practice prohibited by the ECO A. If it does, then clearly it is inconsistent. INTERPRETATION OF REGULATION B But it does not. Indeed, the New Jersey statute Section 202.1104 State laws prohibiting marital does just the opposite; it prohibits a practice perstatus inquiries generally are not inconsistent with mitted by the ECO A. the Equal Credit Opportunity Act. Regulation B permits a creditor to ask about The Board has been asked to determine whether an applicant's marital status when the applicant a New Jersey statute that prohibits marital status applies for other than individual, unsecured credit. inquiries in connection with a credit application This regulatory provision implements a statutory is inconsistent with the Equal Credit Opportunity determination that a marital status inquiry made Act (15 U.S.C. 1691 -1691 (f)), as implemented by for the purpose of ascertaining a creditor's rights Regulation B (12 CFR Part 202), and therefore and remedies does not represent marital status preempted. The issue is whether an absolute ban discrimination under the ECO A. Furthermore, the on marital status inquiries is inconsistent with that act and regulation permit creditors to consider state portion of § 202.5(d)(1) of Regulation B that per- property laws affecting creditworthiness even if mits marital status inquiries. those laws make distinctions based upon marital The New Jersey statute *generally bars marital status. status inquiries in connection with all credit appli- The New Jersey statute under review clearly cations. On the other hand, § 202.5(d)(1) of Reg- prevents a creditor from taking advantage of the ulation B provides that a creditor may request an ECOA and Regulation B provisions noted in the applicant's marital status when the applicant ap- preceding paragraph. In that sense, it might be plies for credit with another person or relies on considered "inconsistent" with federal law. The another person's income or assets or when the purpose of the provisions in the ECOA and Reguapplicant seeks credit secured by collateral. For lation B that permit marital status inquiries in the reasons set forth below, the Board has deter- certain circumstances, however, is to accommomined that the New Jersey statute is not inconsis- date state laws that may affect creditworthiness. tent with the ECO A. Thus, in this case, if the New Jersey statute A preemption determination requires a two-step banning marital status inquiries precludes considanalysis. First, the Board must determine whether eration of factors under other New Jersey laws that the state law is inconsistent and, second, whether affect creditworthiness, the inconsistency, in the Board's opinion, is between the differing New Jersey laws, not between state and federal law. The New Jersey legislature obviously has made a policy judgment that collection of information * New Jersey Stat. Annot. 10:15-12(i)(2) provides (emphasis added): regarding an applicant's marital status for the It shall be ... an unlawful discrimination: purpose of determining a creditor's rights and i. For any person, bank, banking organization, mortgage remedies is not necessary. The ECOA leaves that company, insurance company or other financial institution, lender or credit institution to whom application is made for judgment to state law. Therefore, the approany loan or extension of credit including but not limited to priateness of the New Jersey legislature's decision an application for financial assistance for the purchase, acquisition, construction, rehabilitation, repair or maintenance of is not an issue in this matter. Since a New Jersey any real property or part or portion thereof or any agent or creditor can comply with the New Jersey statute employee thereof: without violating the ECOA, the Board believes * * * that the laws are not inconsistent on the basic point (2) to use any form of application for such loan, extension of marital status discrimination. of credit or financial assistance or to make any record or inquiry in connection with applications for any such loan, extension Two remaining questions relevant to deciding of credit or financial assistance which expresses, directly or whether the New Jersey statute is inconsistent are: indirectly, any limitation, specification or discrimination as to race, creed, color, national origin, ancestry, marital status, (1) Does the state law prevent a creditor from sex or nationality or any intent to make any such limitation, seeking information required for monitoring purspecification or discrimination; unless otherwise required by law or regulation to retain or use such information. poses under § 202.13 of Regulation B or under Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 861 substitute monitoring programs imposed by the views has expired, and the application and all other federal enforcement agencies listed in § 704 comments received have been considered in light of the ECOA? of the factors set forth in section 3(c) of the Act (2) Does the state law prevent a creditor from (12 U.S.C. § 1842(c)). making inquiries concerning information required Applicant is a non-operating corporation with for the establishment of special purpose credit no subsidiaries, organized for the purpose of beprograms under § 202.8 of Regulation B? coming a bank holding company through the ac- The answer to these two questions also is that quisition of Bank. Upon acquisition of Bank, with it does not. The Board interprets the language in deposits of $102.3 million,1 Applicant would conthe last sentence of the New Jersey statute— trol the 84th largest bank in Illinois, and hold 0.14 "unless otherwise required by law or regulation percent of total deposits in commercial banks in to retain or use such information"—to provide the state. specifically for compliance with these provisions Bank is the second largest of 25 banks in the of Regulation B. relevant banking market,2 controlling 14.8 percent Based on this analysis, the Board has deter- of commercial bank deposits in the market. While mined that the New Jersey statute, along with other the proposal involves the transfer of ownership of substantially similar state laws prohibiting marital Bank from individuals to a corporation controlled status inquiries in connection with a credit appli- by the same individuals, the Board notes that cation, are not inconsistent with the ECOA and Applicant's principals are also associated with Regulation B and therefore are not preempted if other banks located in the relevant banking marthose laws permit marital status inquiries in accor- ket.3 The largest of these banks, American Nadance with §§ 202.8 and 202.13 of Regulation B. tional Bank of Champaign, Champaign, Illinois ("American National"), holds $40.1 million in deposits, representing 5.8 percent of commercial bank deposits in the market.4 The aggregated deposits held by Bank and the three associated banks BANK HOLDING COMPANY in the relevant banking market total $158.8 mil- AND BANK MERGER ORDERS lion, representing 23.0 percent of total market ISSUED BY THE BOARD OF GOVERNORS deposits. Orders Under Section 3 In considering applications under section 3 of the Act, where the bank to be acquired is already of Bank Holding Company Act part of a chain of banking organizations, the Board First Busey Corporation, has considered whether, in the formation of the Urbana, Illinois chain, the acquisition of one or more of those organizations substantially lessened competition in Order Approving a banking market or was anticompetitive at its Formation of a Bank Holding Company First Busey Corporation, Urbana, Illinois, has applied for the Board's approval under section 3(a)(1) of the Bank Holding Company Act (12 1. Banking data are as of June 30, 1978. U.S.C. § 1842(a)(1)) of formation of a bank 2. The relevant banking market is approximated by the holding company by acquiring 100 percent (less Champaign-Urbana SMS A, which is coterminous with Chamdirectors' qualifying shares) of the voting shares paign County, Illinois. 3. The Board notes that certain directors and officers of of the successor by merger to Busey First National Applicant and Bank are also serving in similar positions with Bank, Urbana, Illinois ("Bank"). The bank into other banking organizations in the Champaign-Urbana SMS A. However, Applicant has committed that prior to consummation which Bank is to be merged has no significance of the proposal, it will terminate all such interlocking manageexcept as a means to facilitate the acquisition of ment relationships that would otherwise become prohibited the voting shares of Bank. Accordingly, the pro- under the provisions of the Depository Institutions Management Interlocks Act and the Board's Regulation L, as a result of posed acquisition of shares of the successor orga- Applicant's acquisition of Bank. nization is treated herein as the proposed acquisi- 4. In addition to American National, Applicant's principals tion of the shares of Bank. are associated with a smaller bank in the market, The State Bank of St. Joseph, St. Joseph, Illinois ($7.0 million in Notice of the application, affording opportunity deposits), and one principal has received approval from the for interested persons to submit comments and Comptroller of the Currency pursuant to the Change in Bank Control Act of 1978 (12 U.S.C. § 1817(j)) to acquire shares views, has been given in accordance with section of National Bank of Urbana, Urbana, Illinois ($9.5 million 3(b) of the Act. The time for filing comments and in deposits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

862 Federal Reserve Bulletin • November 1979 inception.5 In this connection, the Board notes that By order of the Board of Governors, effective American National was organized by principals of September 17, 1979. Bank in 1964, and that in 1971, Applicant's principals purchased the shares of Bank together Voting for this action: Chairman Volcker and Governors Wallich, Teeters, and Rice. Absent and not voting: with those of American National. Thus, it appears Governors Schultz, Coldwell, and Partee. that the nature of the relationship between Bank and American National is such that little, if any, (Signed) GRIFFITH L. GARWOOD, meaningful competition has ever developed be- [SEAL] Deputy Secretary of the Board. tween the two banks, and viewed in light of this relationship, the Board does not regard the effects of the proposed acquisition on competition within First City Bancorporation of Texas, Inc., the relevant banking market as significant. Finally, Houston, Texas while principals of Applicant are also associated Order Approving with 17 other banking organizations, none of these Acquisition of Banks and Nonbanking Companies competes in the relevant banking market, and there does not appear to be any competition between First City Bancorporation of Texas, Inc., Hous- Bank and any of these banking organizations. ton, Texas, a bank holding company within the Based on the foregoing, the Board concludes that meaning of the Bank Holding Company Act (the the overall effects of the proposal on competition "Act"), has applied for the Board's approval would not be significantly adverse. under § 3(a)(5) of the Bank Holding Company Act Where principals of an applicant are engaged (12 U.S.C. § 1842(a)(5)) to merge with New First in operating a chain of banking organizations, the Security National Corporation, Houston, Texas Board, in addition to analyzing the one-bank ("New FSN"), the successor in interest to First holding company proposal before it, also considers Security National Corporation, Beaumont, Texas the total chain and analyzes the financial and ("FSN"). New FSN has applied for the Board's managerial resources and future prospects of the approval under § 3(a)(1) of the Bank Holding chain within the context of the Board's multibank Company Act (12 U. S. C. § 1842(a)( 1)) to become holding company standards. Based upon such a bank holding company by acquiring the assets analysis in this case, the financial and managerial and assuming the liabilities of FSN. Since New resources and future prospects of Applicant, Bank, FSN has no significance except as a means to and the associated banking organizations are con- facilitate the acquisition of FSN by Applicant, the sistent with approval of the application. While proposed acquisition of shares of the successor consummation of the proposal will not result in organization is treated herein as the proposed acany immediate changes in Bank's services, con- quisition of FSN directly by Applicant. Applicant siderations relating to the convenience and needs has also applied for the Board's approval under of the community to be served are regarded as § 3(a)(3) of the Bank Holding Company Act (12 consistent with approval of the application. U.S.C. § 1842(a)(3)) to acquire 62.5 percent of After considering the competitive effects asso- the voting shares of Gateway National Bank of ciated with the application, the financial and man- Beaumont, Beaumont, Texas ("Gateway Bank"). agerial resources and future prospects of Applicant FSN currently controls 37.5 percent of Gateway and Bank, and the convenience and needs of the Bank's outstanding shares. community to be served, the Board finds that Applicant has also applied, pursuant to section consummation of the proposal would be consistent 4(c)(8) of the Bank Holding Company Act (12 with the public interest. On the basis of the record U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of and for the reasons summarized above, the applithe Board's Regulation Y (12 CFR § 225.4(b)(2)), cation is approved. The transaction shall not be to acquire all of the assets of FSN that provide consummated before the thirtieth calendar day bookkeeping and data processing services necesfollowing the effective date of this Order, or later sary for its internal operations and the operations than three months after the effective date of this of its subsidiaries, and other functions permissible Order, unless such period is extended for good under section 225.4(a)(8) of the Board's Regulacause by the Board or by the Federal Reserve Bank tion Y; and to acquire FSN Life Insurance Comof Chicago pursuant to delegated authority. pany, Beaumont, Texas, a subsidiary of FSN, and thereby engage in the writing of credit accident, health, and life insurance directly related to exten- 5. Citizens Bancorp, Inc., (63 FEDERAL RESERVE BULLETIN sions of credit. Such activities have been specified 1083, 1084 (1977)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 863 by the Board in section 225.4(a)(9) of Regulation account for approximately 62 percent of market Y as permissible for bank holding companies, deposits, with Applicant a distant fourth. In addisubject to Board approval of individual proposals tion, each of Applicant's subsidiary banks is at in accordance with the procedures of section least five miles from an FSN subsidiary bank. In 225.4(b).1 light of such considerations, it appears that the Notice of the applications, affording opportunity proposal would have only a slightly adverse effect for interested persons to submit comments and upon existing competition in the Dallas banking views, has been given in accordance with sections market. 3 and 4 of the Act (44 Federal Register 36474 FSN controls the 43rd largest of 49 banking (1979)). The time for filing comments and views organizations in the Fort Worth banking market has expired, and the Board has considered the (approximated by the Fort Worth RMA), holding applications and all comments received in light of $6.7 million in commercial bank deposits, reprethe factors set forth in section 3(c) of the Act and senting 0.2 percent of market deposits. Applicant's the considerations specified in section 4(c)(8) of acquisition of FSN's subsidiary bank would give the Act (12 U.S.C. §§ 1842(c) and 1843(c)(8)). Applicant only a foothold entry into this market Applicant, the second largest banking organi- since Applicant is not currently represented in the zation in Texas,2 controls 32 banks with aggregate Fort Worth market. Therefore, no existing, and deposits of approximately $5.6 billion, repre- little if any, probable future competition would senting 8.2 percent of total commercial bank de- be eliminated upon consummation of the proposal. posits in the state. FSN, the 17th largest banking Applicant is not currently represented in the organization in Texas, controls 10 banks with Beaumont banking market but has previously aggregate deposits of approximately $413 million, sought to enter the market.3 FSN, headquartered representing 0.6 percent of total commercial bank in Beaumont, is the largest of 21 banking organideposits in the state. Gateway Bank is the 4th zations in the market, controlling four whollylargest bank in the FSN system with $25.4 million owned subsidiary banks, including the market's in deposits and is the 291st largest bank in the largest bank. FSN also controls 37.5 percent of state. Upon consummation of the proposal, Ap- Gateway Bank, the 12th largest bank in the Beauplicant's share of commercial bank deposits in mont market holding 2.0 percent of market depos- Texas would increase to 8.8 percent, and it would its.4 Accordingly, FSN's five banking subsidiaries become the largest banking organization in the in the Beaumont market hold aggregate deposits state. of approximately $298.6 million, representing The competitive effects associated with the sub- 24.1 percent of market deposits. Applicant's ject proposal, in addition to the general effect upon banking subsidiary closest to any FSN subsidiary the structure of banking in Texas, must be consid- bank in the Beaumont market is located more than ered within three separate banking markets—the 25 miles from the nearest FSN bank and in an Dallas banking market, the Fort Worth banking adjacent and separate banking market. In light of market, and the Beaumont banking market. Ap- the facts of record, it appears that no existing plicant is the fourth largest of 104 banking organi- competition would be eliminated upon consumzations located in the Dallas banking market (ap- mation of the proposal. proximated by the Dallas Ranally Metropolitan Notwithstanding the absence of any signifi- Area ("RMA")) controlling six subsidiary banks cantly adverse effects of the proposal upon existing with aggregate deposits of $722.9 million, representing 5.4 percent of total commercial banking 3. The Beaumont banking market, previously determined market deposits. FSN is the market's 13th largest to be approximated by the Beaumont Standard Metropolitan banking organization, with four subsidiary banks Statistical Area ("SMSA"), has been redefined to include holding aggregate deposits of $107.9 million, rep- Jefferson and Hardin Counties and the cities of Vidor and Bridge City in Orange County. Based upon data furnished by resenting 0.8 percent of market deposits. The three Applicant, a field investigation conducted by the Dallas Relargest banking organizations in the Dallas market serve Bank, and other evidence of record, including commuting and advertising data, the Board concluded that the Beaumont- Port Arthur-Orange SMSA (Jefferson, Hardin, and Orange Counties) should be divided into two markets—the Beaumont 1. FSN also has a wholly-owned mortgage subsidiary that banking market described above and the Orange County bankhas ceased making loans. FSN will dispose of the contracts ing market consisting of Orange County excluding the cities the subsidiary currently holds and dissolve it prior to consum- of Vidor and Bridge City. mation of the subject proposal. 4. Since Applicant proposes to acquire the remaining 62.5 2. All banking data are as of December 31, 1978, and reflect percent interest in Gateway Bank, market rankings and banking bank holding company formations and acquisitions approved data have been adjusted as though Gateway Bank were as of June 30, 1979. wholly-owned by FSN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

864 Federal Reserve Bulletin • November 1979 competition, the Board is concerned with the ad- respect to offering data processing services to verse effect the proposal would have upon proba- nonaffiliated financial concerns, based upon the ble future competition within the Beaumont bank- facts of record, it appears that consummation of ing market, particularly in view of the sizeable the proposal would have some slight adverse presence of FSN in the Beaumont market. This competitive effects in the Dallas and Houston application represents Applicant's third overture to areas. The Board, however, does not find that enter the Beaumont banking market; its two earlier consummation would result in undue concentration attempts were abrogated during their preliminary of resources, decreased or unfair competition, stages. It is evident that Applicant possesses the conflicts of interest, unsound banking practices, ability to expand into Beaumont de novo or or other adverse effects. through a foothold entry, and based upon its ex- In past denials of applications submitted by pansion history, Applicant has to be viewed as some of the larger banking organizations in Texas a likely potential entrant into the Beaumont mar- to acquire leading banks in the state's secondary ket. Finally, de novo entry is a possibility since banking markets, the Board expressed its concern the market can be characterized as moderately that approval of such proposals would likely result attractive to such form of entry. Such factors in a rapid increase in the share of deposits held would indicate some adverse impact on probable by the state's largest organizations as well as a future competition. rapid increase in size disparity between those or- The above considerations, however, are miti- ganizations and the state's smaller bank holding gated by other facts of record. While the market's companies.5 Subsequent to taking those actions the deposit concentration is moderate (four-firm ratio Board had occasion to review the banking structure of 64.7 percent), concentration has declined in Texas at large and within several regional Texas somewhat over time and may continue to decline banking markets. While continuing to be of the in light of the market's attractiveness to de novo view that the effect of a proposal upon statewide entry. Moreover, following consummation, five concentration was a matter that deserved studied out of the state's ten largest banking organizations attention, the Board approved several proposals would still remain unrepresented in the Beaumont submitted by large Texas banking organizations market, and these organizations may be appro- after finding that consummation of each of those priately regarded as potential entrants. Also, al- proposals would not have such an adverse effect ready represented in the market are subsidiaries upon concentration and probable future competiof the state's first, third, sixth, and eighth largest tion as to require denial.6 banking organizations. In such an environment, The Board continues to monitor statewide FSN has not been able to increase to any signifi- banking structures in general and, more specificant extent its market presence and cannot be cally, the size disparity between the large banking viewed as the dominant organization in the market. organizations operating statewide and the smaller In light of the above, the Board is unable to regional banking organizations. The Board is conconclude that consummation of the proposal would cerned with the possibility that continued approval have such adverse competitive effects as to clearly by the Board of acquisition or merger proposals warrant denial of the applications. involving large statewide and relatively sizeable As part of the subject proposal, Applicant has also applied for the Board's permission to acquire FSN's nonbanking subsidiary, FSN Life Insurance 5. See the Board's Orders denying the applications of First Company, which offers credit-related insurance International Bancshares, Inc., Dallas, Texas, to acquire Citizens First National Bank of Tyler, Tyler, Texas (60 FEDERAL through FSN's banking subsidiaries, and to ac- RESERVE BULLETIN 43 (1974)), and The First National Bank quire FSN's data processing subsidiary, First Se- of Waco, Waco, Texas (60 FEDERAL RESERVE BULLETIN 290 (1974)); the application of First City Bancorporation of Texas, curity Financial Systems, which provides book- Inc., Houston, Texas, to acquire The Lufkin National Bank, keeping and data processing services for FSN, its Lufkin, Texas (60 FEDERAL RESERVE BULLETIN 450 (1974)); subsidiaries, and for other financial concerns. Ap- and the applications of Texas Commerce Bancshares, Inc., Houston, Texas, to acquire The Austin National Bank, Austin, plicant has subsidiaries offering identical services Texas, and Oak Hill National Bank, Oak Hill, Texas (61 to Applicant's customers and, in the case of data FEDERAL RESERVE BULLETIN 109 (1975)). processing, to other financial concerns as well. 6. See the Board's Orders approving the applications of First Since the credit-related insurance is offered only City Bancorporation of Texas, Inc., Houston, Texas, to acquire Lufkin National Bank, Lufkin, Texas (64 FEDERAL RESERVE to customers of lending subsidiaries of the parent, BULLETIN 969 (1978)), and of Texas Commerce Bancshares, there would be no adverse competitive effects Inc., Houston, Texas, to acquire BanCapital Financial Corassociated with these insurance activities. With poration, Austin, Texas (63 FEDERAL RESERVE BULLETIN 500 (1977)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 865 banking organizations may perpetuate this size On the basis of the foregoing and other facts disparity and increase concentration ratios. Under in the record, and in light of the factors set forth section 3(c) of the Act, the Board is not required in section 3(c) of the Act and the considerations to tolerate increases in banking concentration since specified in section 4(c)(8) of the Act, it is the the underlying purpose of the Clayton Act as Board's judgment that approval of the proposal incorporated in the Bank Holding Company Act would generally be in the public interest. Accordis to break the force of a trend toward undue ingly, the applications to acquire FSN's banking concentration before it gathers momentum (see subsidiaries and to acquire the outstanding shares Brown Shoe Co. v. United States, 370 U.S. 294, of Gateway Bank, to merge FSN and New FSN, 317-18). In acting upon the subject proposal the and to acquire FSN's credit insurance and data Board was mindful of these considerations and processing nonbank subsidiaries are approved for concerns. the reasons summarized above. The acquisition of After considering the overall impact of con- the banking organizations shall not be made before summation of this proposal, the Board has con- the thirtieth calendar day following the effective cluded that approval of the subject applications date of this Order; and the acquisition of neither would generally be in the public interest. The the banking subsidiaries nor the credit-related in- Board recognizes that consummation of the pro- surance and data processing subsidiaries shall be posal would have some adverse competitive effect made later than three months after the effective upon probable future competition within the date of this Order, unless such periods are ex- Beaumont banking market, as well as an adverse tended for good cause by the Board or by the effect upon the banking structure in Texas by Federal Reserve Bank of Dallas pursuant to delefurther enlarging the disparities between major gated authority. The determination as to Applistatewide and regional bank holding companies. cant's proposed insurance and data processing However, the Board believes that approval of this activities is subject to the conditions set forth in proposal would not have such an effect on the section 225.4(c) of Regulation Y and to the concentration of banking resources within the Board's authority to require reports by, and make "first tier" of Texas bank holding companies and examinations of, holding companies and their probable future competition within the Beaumont subsidiaries and to require such modification or market as to require denial of the proposal. There- termination of the activities of a bank holding fore, the Board has determined that the section company or any of its subsidiaries as the Board 3 applications should be approved. finds necessary to assure compliance with the It should be noted that it is not the Board's provisions and purposes of the Act and the Board's intention to suggest by this Order that it will regulations issued thereunder, or to prevent evagenerally approve the acquisition of leading local sion thereof. market competitors by major statewide organi- By order of the Board of Governors, effective zations. To the contrary, this case approaches the September 10, 1979. limits in terms of the size of the banking organization being acquired and the effects on competi- Voting for this action: Chairman Volcker and Governors Schultz, Coldwell, and Partee. Voting against this tion and concentration of what the Board will action: Governors Wallich, Teeters, and Rice. Goverregard as approvable in light of present structural nors Schultz and Wallich abstained from voting on the and legal considerations. section 4(c)(8) application to acquire FSN Life. The financial and managerial resources and fu- (Signed) GRIFFITH L. GARWOOD, ture prospects of Applicant and its subsidiaries are [SEAL] Deputy Secretary of the Board. regarded as generally satisfactory. The financial and managerial resources and future prospects of FSN and its subsidiaries are also regarded as Dissenting Statement of Governors Wallich, generally satisfactory. Overall convenience and Teeters, and Rice needs considerations are viewed as lending such weight as to warrant approval of the proposal. In We would deny the applications of First City part this will result from the greater expertise and Bancorporation of Texas to acquire First Security specialization of services that FSN can offer its National Corporation, a multi-bank holding comcustomers through affiliation with Applicant, lower pany, for the reasons set forth in Dissenting Staterates on credit insurance that will be offered to ments to past actions by the Board approving customers of FSN subsidiaries, and an expansion applications by major bank holding companies of the data processing services offered. seeking to acquire a banking organization with a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

866 Federal Reserve Bulletin • November 1979 significant presence in one or more markets where corporation will eliminate a banking organization the applicant was not present.1 It is our opinion that has exhibited a willingness to compete in that consummation of this proposal would have major Texas banking markets outside of its an adverse effect upon potential competition which "home" market. Accordingly, consummation of is not outweighed by convenience and needs con- this proposal would, in our view, have an adverse siderations. effect upon potential competition without offering Proposals by statewide organizations to acquire any offsetting procompetitive benefits or outleading regional organizations are not peculiar to weighing convenience and needs considerations. Texas. We believe that the majority is correct in In light of the above, we would deny these concerning itself with undue concentration as it applications. has developed in Texas, but we believe that the September 10, 1979 force of this trend should be broken by denying this case. Our belief is supported by the fact that it appears at least two proposals involving large statewide organizations in Texas to acquire strong Guaranty Bancshares, Inc., regional multi-bank holding companies may be Mount Pleasant, Texas presented to the Board in the near future, and we Order Approving feel that an increasing number of similar proposals Formation of Bank Holding Company from major multi-bank holding companies in other states can be expected to be forwarded to the Board Guaranty Bancshares, Inc., IVJount Pleasant, for action. Texas, has applied for the Board's approval under In the case before us, First City Bancorporation section 3(a)(1) of the Bank Holding Company Act of Texas, the second largest banking organization (12 U.S.C. § 1842(a)(1)) to become a bank holdin Texas, is seeking to acquire First Security ing company by acquiring 80 percent or more of National Corporation, the largest banking organi- the voting shares of Guaranty Bond State Bank, zation in the Beaumont banking market. The pro- Mount Pleasant, Texas ("Guaranty Bank"), and posal merely perpetuates a pattern of acquisition 80 percent or more of the voting shares of The whereby the largest banking organizations in Talco State Bank, Talco, Texas ("Talco Bank").1 Texas acquire the leading banking institutions in Notice of the application, affording opportunity the state's secondary metropolitan areas. It is our for interested persons to submit comments and feeling that continuation of this trend would in- views, has been given in accordance with section crease the size disparity between the largest bank- 3(b) of the Act. The time for filing comments and ing organizations in Texas and all other banking views has expired, and the Board has considered organizations in the state. In addition, we are quite the application and all comments received in light concerned that the majority's decision may con- of the factors set forth in section 3(c) of the Act tinue to encourage Texas bank holding companies (12 U.S.C. § 1842(c)). to eschew de novo or foothold entry into concen- Applicant is a nonoperating corporation formed trated secondary markets in Texas and other hold- for the purpose of becoming a bank holding coming companies within other states in the belief that pany through the acquisition of Guaranty Bank the Board will approve less procompetitive means with $40.9 million in deposits and Talco Bank of entry. Finally, we feel that acquisition of First with $5.3 million in deposits.2 Upon acquisition Security National Corporation by First City Ban- of the two banks, Applicant would become the 173rd largest banking organization in Texas, controlling 0.07 percent of the total deposits in com- 1. See Dissenting Statements accompanying Board Orders approving the applications of Texas Commerce Bancshares, mercial banks in Texas. Inc., Houston, Texas, to merge with The Bancapital Financial Corporation, Austin, Texas (63 FEDERAL RESERVE BULLETIN 500 (1977)); First City Bancorporation of Texas, Inc., Hous- 1. As part of this transaction, Applicant will also acquire ton, Texas, to acquire City National Bank of Austin, Austin, shares of Guaranty Leasing, Inc., a company formed by Texas (63 FEDERAL RESERVE BULLETIN 674 (1977)); DE- Applicant to provide data processing services to its subsidiary TROITBANK Corporation, Detroit, Michigan, to acquire Lake banks. Inasmuch as section 4(c)(1)(C) of the Act permits a Shore Financial Corporation, Muskegon, Michigan (63 FED- bank holding company to acquire a subsidiary solely engaged ERAL RESERVE BULLETIN 926 (1977)); Northwest Bancor- in performing services for subsidiary banks without obtaining poration, Minneapolis, Minnesota, to acquire First National the Board's approval it appears that it is not necessary for Bank, Fort Dodge, Iowa, in Fort Dodge, Iowa (63 FEDERAL Applicant to seek the Board's approval to engage in the RESERVE BULLETIN 1096 (1977)); and First City Bancorpora- specified activities. tion of Texas, Inc., Houston, Texas, to acquire The Lufkin 2. All banking data are as of December 31, 1978, and reflect National Bank, Texas (64 FEDERAL RESERVE BULLETIN 969 bank holding company formations and acquisitions approved (1978)). as of June 30, 1979. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 867 Both Guaranty Bank and Talco Bank are located the community to be served are consistent with in the Titus banking market,3 and rank, respec- approval of the application. Based upon the foretively, as the second and third largest of three going and other considerations reflected in the banking organizations in the market, holding 37.4 record, the Board concludes that consummation and 4.8 percent, respectively, of commercial bank of the proposal would be consistent with the public deposits in the market.4 Applicant's proposal rep- interest and that the application should be apresents the transfer of the ownership of Guaranty proved. Bank and Talco Bank from individuals to a cor- On the basis of the record, the application is poration owned by the same individuals. Inasmuch approved for the reasons summarized above. The as both banks operate in the same market, con- transaction shall not be made before the thirtieth summation of the proposed transaction would ap- calendar day following the effective date of this pear to eliminate some existing competition. Order or later than three months after the effective However, the Board notes that Talco Bank was date of this Order, unless that period is extended established by shareholders of Guaranty Bank in for good cause by the Board, or by the Federal 1913, and that the two Banks have been closely Reserve Bank of Dallas pursuant to delegated affiliated by common ownership or management authority. for over 65 years. Moreover, principals of Appli- By order of the Board of Governors, effective cant have controlled both banks since 1969, and September 24, 1979. they now own 61 percent of Guaranty Bank and 62 percent of Talco Bank. It appears that the nature Voting for this action: Chairman Volcker and Goverof the relationship between the two banks is such nors Schultz, Wallich, Partee, Teeters, and Rice. Absent and not voting: Governor Cold well. that little, if any, meaningful competition presently exists between them. But for the history of the (Signed) GRIFFITH L. GARWOOD, long-established relationship between Guaranty [SEAL] Deputy Secretary of the Board. Bank and Talco Bank, the effects on existing competition would be viewed as more serious, but when considered in light of that relationship the effects are only slight. Moreover, while the Titus Independent Bank Corporation, banking market is concentrated, in view of the Ionia, Michigan nature of the market, the Board does not regard Order Denying Acquisition of Bank the effects of the proposal on concentration of market deposits as being significant. Accordingly, Independent Bank Corporation, Ionia, Michibased on the record in this application, the Board gan, a bank holding company, has applied for the concludes that the overall effects of the proposal Board's approval under section 3(a)(3) of the Bank on competition would not be significantly adverse. Holding Company Act (12 U.S.C. § 1842(a)(3)), The financial and managerial resources and fu- to acquire all the voting shares of the successor ture prospects of Applicant, Guaranty Bank, and by consolidation to The Old State Bank of Fremont Talco Bank are regarded as generally satisfactory, ("Bank"), Fremont, Michigan. The bank to be and the future prospects of each appear favorable. created by consolidation and the entity with which While Applicant will incur some debt in connec- Bank is to be consolidated have no significance tion with the proposed acquisition, it appears that except as a means to facilitate the acquisition of Applicant will have sufficient financial flexibility the voting shares of Bank. Accordingly, the proto meet its debt-servicing requirements while posed transaction is treated in this Order as a maintaining an adequate capital position for its proposed acquisition of the shares of Bank. subsidiary banks. Accordingly, considerations re- Notice of the application, affording opportunity lating to banking factors are consistent with ap- for interested persons to submit comments and proval of the application. While acquisition of views has been given in accordance with section Banks by Applicant will result in no immediate 3(b) of the Act. The time for filing comments and changes in the services offered by Banks, consid- views has expired, and the Board has considered erations relating to the convenience and needs of the application and all comments received in light of the factors set forth in section 3(c) of the Act (12 U.S.C. § 1842(c)). 3. The Titus banking market, a primarily rural area, is approximated by Titus County, Texas. Applicant, the 36th largest banking organization 4. In addition, the Board notes that state and Federal auin Michigan, controls four banks with aggregate thorities have recently approved the establishment of a new independent bank in the Titus banking market. deposits of approximately $115.2 million repre- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

868 Federal Reserve Bulletin • November 1979 senting 0.3 percent of the total deposits in com- county and there is some other economic interacmercial banks in the state.1 Bank is the 215th tion among the four counties. But with regard to largest bank in Michigan, holding approximately the provision of banking services, the Board is 0.06 percent of the total deposits in commercial persuaded that the Fremont-Newaygo banking banks in the state. Upon consummation of the market is a better approximation of the relevant proposed acquisition, Applicant would become the geographic market for assessing competitive in- 30th largest banking organization in the state with fluences.4 0.37 percent of total statewide commercial bank Fremont and Newaygo are only 13 miles from deposits. each other and the distance between Fremont and The Board has previously concluded that Fre- Muskegon and Newaygo and Grand Rapids, remont banks compete within the Fremont-Newaygo spectively, is considerably greater than the disbanking market, approximated by the southern tance between Fremont and Newaygo. In addition, two-thirds of Newaygo County.2 Bank is the larg- Fremont is the economic and trade center of the est of six banking organizations in that market, county. The county's largest employer, Gerber controlling 27.6 percent of market deposits. Ap- Products Company ("Gerber"), is located in Freproval of this acquisition would eliminate existing mont, and residents from other parts of southern competition between Bank and Applicant's bank- Newaygo County commute to Fremont. The Board ing subsidiaries operating in the market. Two of also notes that banks outside Newaygo County Applicant's existing subsidiary banks operate in typically do not advertise in the Fremont or the Fremont-Newaygo banking market: The First Newaygo newspapers. Furthermore, a survey of State Bank of Newaygo ("Newaygo Bank"), bankers within the county indicates that they look Newaygo, Michigan (deposits of $12.9 million), to one another as competitors while they do not and Western State Bank ("Western Bank"), consider banks outside the county their competi- Howard City, Michigan, which has a branch at tors.5 Croton Dam (deposits of $1.6 million). On the Applicant also argues that the competition for basis of the deposits of Newaygo Bank and West- banking services between Fremont and Newaygo, ern Bank, which represent 16.8 percent of total where Applicant's existing subsidiary is located, commercial bank deposits in the Fremont- is minimized because of the orientation of these Newaygo banking market, Applicant is the third two towns towards Muskegon and Grand Rapids, largest banking organization in the market. Con- respectively. It does appear that, to the extent summation of the proposal would increase Appli- residents of Newaygo County commute to work cant's share of total market deposits to 44.4 per- outside the county, those residing near Fremont cent. Applicant would become the largest banking tend to commute to Muskegon and those residing organization in the market, and the number of near Newaygo tend to commute to Grand Rapids. banking organizations operating within the market In addition, the overlap of the primary service would be reduced to five. areas of Bank and Newaygo Bank, as defined by Applicant has urged the Board, however, to Applicant, is relatively small. However, the areas revise its view of the relevant geographic market. between Fremont and Grand Rapids and Newaygo It contends that Bank operates in a banking market and Muskegon, respectively, are largely undevelapproximated by ten Michigan counties.3 Within oped and sparsely populated. Fremont and this ten-county area, Applicant focuses its analysis Newaygo are only 13 miles apart and there is on a "four-county banking region" composed of convenient access between the two towns, so that Kent, Muskegon, Newaygo, and Ottawa Counties. a bank in one town is a practical alternative to However, the Board does not consider that these customers located in the other.6 On balance the suggestions realistically reflect the area within Board is persuaded that competition between which the effects of the proposed transaction will be direct and immediate, or that they adequately 4. This conclusion is also compatible with the "market take into account the local nature of the demand area" definition Applicant used in support of its earlier applifor most banking services. It is true that residents cation to acquire Newaygo Bank. 5. In this regard, Applicant itself has conceded, in its of Newaygo County are employed outside the application to acquire Western Bank, that "[t]o the extent that Newaygo Bank responds to competition, it does so almost exclusively in response to the marketing practices of the banks 1. All banking data are as of June 30, 1978. located west of Newaygo and the M-37 corridor in the city 2. Independent Bank Corporation, (63 FEDERAL RESERVE of Fremont." BULLETIN 153 (1977)). 6. It is also noted that Michigan law permits Bank and 3. Allegan, Barry, Ionia, Kent, Mecosta, Montcalm, Mus- Newaygo Bank to branch into the primary service areas of kegon, Newaygo, Oceana, and Ottawa Counties. one another. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 869 banks in Fremont and Newaygo is significant and eations has been presented for the Board's considdirect and that the influence of Muskegon and eration. Each of them, with the exception of Ap- Grand Rapids is not sufficient to alter the integrity plicant's ten-county market, has some merit, reof the relevant market as previously defined. flecting recognized economic and competitive re- Based upon the foregoing, the Board believes lationships, but no one of them is entirely satisthat the appropriate geographic area for assessing factory. To view this proposal, for example, as competitive effects of this proposal is the Fre- the acquisition of a relatively small bank in a mont-Newaygo banking market as previously de- four-county market would be to ignore the elefined, and the Board finds on the basis of the facts ments of economic autonomy that tend to insulate of record that the effect of this proposal on com- Newaygo County banks from the effects of competition in that market would be substantially ad- petitive changes outside Newaygo County. On the verse. other hand, the Board's view of this proposal as The financial and managerial resources of Ap- an acquisition of the largest bank in a small rural plicant and its subsidiary banks are regarded as market has the effect of ignoring what interaction satisfactory. Those of Bank are also regarded as there is between Newaygo County and nearby satisfactory. Accordingly, considerations relating urban areas. The possible intermediate or comproto banking factors are consistent with but lend no mise views are no more attractive. weight toward approval of the application. While This difficulty in delineating the geographic Applicant proposes to assist Bank in offering ad- market reflects measurement difficulties presented ditional services such as extending Bank's Satur- by rural areas that are linked to metropolitan areas. day hours, there is no indication that the needs The southern two-thirds of Newaygo County may of Bank's customers are not currently being met. be a convenient point to begin an analysis of this Accordingly, the Board finds that considerations proposal, but giving weight to the unusual characrelating to convenience and needs of the commu- teristics of this case, I conclude the competitive nity to be served do not outweigh the substantially effects of this acquisition would be only slightly adverse competitive effects that would result from adverse. Applicant's acquisition of Bank. First, this area of Michigan is one example On the basis of the foregoing and other consid- where a proper analysis of competitive effects erations reflected in the record, it is the Board's should take particular account of influences exjudgment that consummation of the proposed cluded by the geographic market definition. In this transaction would not be in the public interest, and case, there is substantial and increasing commutthe application is denied. ing from southern Newaygo County into the other By Order of the Board of Governors, effective areas of the large four-county region delineated September 21, 1979. by Applicant. In addition, the development of large regional retail shopping centers outside Voting for this action: Chairman Volcker and Gover- Newaygo County has increased the commercial nors Teeters and Rice. Voting against this action: Govintegration of this area. Advertising from Grand ernor Wallich. Absent and not voting: Governors Schultz, Coldwell, and Partee. Rapids and Muskegon also broadly covers Newaygo County. The only television stations and (Signed) GRIFFITH L. GARWOOD, daily newspapers and most radio stations serving [SEAL] Deputy Secretary of the Board. Newaygo County are located in Grand Rapids or Muskegon and the major Grand Rapids financial institutions advertise heavily through these media. Finally, focusing particularly on actual compe- Dissenting Statement of Governor Wallich tition between Bank and Newaygo Bank, it is This case illustrates the limitations of rigid relevant that despite their proximity there is very market analysis. There are, of course, legal con- little overlap in their primary service areas. To siderations that encourage such an approach, and a certain extent this may reflect the similarity of a traditional market analysis is undoubtedly useful their services, so that customer choice may now for most cases the Board reviews. However, I be dictated almost exclusively by convenience, but believe there are some cases, including this pro- it also reflects the polarization of Newaygo posal, where this approach may tend more to County, Fremont being oriented toward Muskegon obscure or distort, rather than illuminate, compet- and Newaygo toward Grand Rapids, that Appliitive relationships among banking organizations. cant points out. These geographic considerations In this case an array of alternative market delin- mitigate the competitive effects of the proposed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

870 Federal Reserve Bulletin • November 1979 acquisition, and allowances should be made for Newaygo County. On balance, I believe the comthem. petitive effect of the proposal would be only Allowances should also be made for influences slightly adverse and that the new services Appliexcluded by the product market definition. I have cant proposes to introduce at Bank outweigh that expressed my opinion earlier that thrift institutions slightly anticompetitive effect. Accordingly, I should be included in a competitive analysis to would approve this application. a much greater extent than is the practice.1 Al- September 21, 1979 though these institutions are restricted from offering some services offered by commercial banks and although credit unions in particular are restricted to a confined set of customers, their com- M.S.B. Agency, Inc., petitive influence should not be overlooked. The St. Paul, Minnesota products and services of thrifts are offered in direct Order Approving competition with those of commercial banks, and Formation of Bank Holding Company the area of functional overlap between the two types of institutions, which in recent years has M.S.B. Agency, Inc., St. Paul, Minnesota, has been expanding, has historically included nonbusiapplied for the Board's approval under section ness products and services for which the market 3(a)(1) of the Bank Holding Company Act (12 is particularly localized geographically. In this U.S.C. § 1842(a)(1)) of formation of bank holding case, I believe that the presence of a savings and company through acquisition of 85.1 percent of loan association and three credit unions in southern the voting shares of Minnesota State Bank of St. Newaygo County, which hold $16.9 million in Paul, St. Paul, Minnesota ("Bank"). savings deposits and which include the credit Notice of the application, affording opportunity union in Fremont for employees of the county's for interested persons to submit comments and principal employer, further diminishes the antiviews, has been given in accordance with section competitive character of this acquisition. 3(b) of the Act. The time for filing comments and In addition to acknowledging the influence of views has expired, and the Board has considered thrift institutions in a market, more recognition the application and all comments received in light should be given to organizational characteristics, of the factors set forth in section 3(c) of the Act particularly the disproportionate competitive (12 U.S.C. § 1842(c)). power of a state's larger banking organizations By Order dated December 22, 1978, the Board operating in a market. In this case, one Statewide denied the application of M.S.B. to become a bank banking organization has achieved a significant holding company through the acquisition of Bank. position in the four-county region that includes Thereafter, M.S.B. requested reconsideration of Newaygo County, and as a result the competitive that Order pursuant to section 262.3(i) of the power of its bank in Newaygo County, which with Board's Rules of Procedure (12 C.F.R. deposits of $22.6 million is only slightly smaller § 262.3(i)), and on January 15, 1979, the Board's than Bank, is likely to be somewhat greater than General Counsel, acting pursuant to delegated its market share would suggest.2 authority (12 C.F.R. § 265.2(b)(7)), granted These three factors, geographic, functional, and M.S.B.'s request for reconsideration. organizational, bear directly on the competitive Applicant, a nonoperating corporation with no effects of this proposal and lead me to discount subsidiaries, was organized for the purpose of the conclusions that would be reached by a simple becoming a bank holding company through acquicomparison of market shares among commercial sition of Bank, the 67th largest banking organibanking institutions in the southern two-thirds of zation in Minnesota, which holds deposits of approximately $25.3 million.1 Upon acquisition of 1. United Bank Corporation of New York, (64 FEDERAL Bank, Applicant would control about 0.1 percent RESERVE BULLETIN 894, 896 (1978)). of total deposits in commercial banks in the state. 2. When Old Kent Financial Corporation ("Old Kent"), Grand Rapids, Michigan, acquired Fremont Bank and Trust Bank is the 33rd largest of 113 banking organi- Company, ("Fremont Bank"), Fremont, Michigan, in 1973, zations in the relevant banking market,2 and con- Bank's market share of deposits in commercial banks was 5.7 percent greater than that of Fremont Bank. Since that time the difference in market share controlled by the two organizations has narrowed to 1.4 percent. Since its acquisition by 1. All banking data are as of March 31, 1978. Old Kent, Fremont Bank has experienced a 56.9 percent 2. The relevant banking market is approximated by the growth rate in deposits, while for the same time period, Bank's Minneapolis-St. Paul RMA, adjusted to include all of Carver growth rate in deposits has been only 40.0 percent. County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 871 trols 0.3 percent of total market deposits. While Although Applicant proposes no immediate Applicant's principal is also a principal in several changes in Bank's services, convenience and other banking organizations, none of these banking needs considerations are also consistent with aporganizations competes in the relevant banking proval. Therefore, it is the Board's judgment that market. Therefore, it appears that no competition the proposed acquisition would be in the public would be eliminated as a result of consummation interest and that the application should be apof this proposal. Moreover, inasmuch as the pro- proved. posed transaction involves the transfer of owner- On the basis of the record the application is ship of Bank from an individual and several cor- approved for the reasons summarized above. The porations controlled by that individual to a single transaction shall not be made before the thirtieth corporation owned by the individual, it appears calendar day following the effective date of this that consummation of this proposal would have Order or later than three months after the effective no adverse effects upon existing or potential com- date of this Order, unless such period is extended petition, nor would it increase the concentration for good cause by the Board of Governors or by of banking resources in the relevant market. Ac- the Federal Reserve Bank of Minneapolis, purcordingly, the Board concludes that competitive suant to delegated authority. considerations of the proposal are consistent with By Order of the Board of Governors, effective approval of the application. September 17, 1979. In its earlier Order denying the application, the Board expressed the view that Applicant lacked Voting for this action: Chairman Volcker and Governors Wallich, Teeters, and Rice. Absent and not voting: the necessary financial flexibility and resources to Governors Schultz, Coldwell, and Partee. meet its annual debt-servicing requirements while maintaining adequate capital at Bank to meet any (Signed) GRIFFITH L. GARWOOD, unforeseen problems that might arise at Bank. The [SEAL] Deputy Secretary of the Board. Board also noted the highly leveraged condition of the other holding companies with which Applicant's principal is associated. Missouri Country Banschares, Inc., In connection with its Request for Recon- Liberal, Missouri sideration and as part of the record in this matter, Order Approving Acquisition of Bank Applicant now will be assuming a considerably lesser amount of acquisition debt than in the earlier Missouri Country Bancshares, Inc., Liberal, proposal denied by the Board. Based upon the Missouri, a bank holding company, has applied above and other facts reflected in the record, the for the Board's approval under section 3(a)(3) of Board is now of the view that Applicant will have the Bank Holding Company Act (12 U.S.C. sufficient financial flexibility to meet its debt-serv- § 1842(a)(3)) to acquire 56.77 percent of the voticing requirements while maintaining adequate ing shares of Bank of Raymondville ("Bank"), capital at Bank. Although Bank's growth has been Raymondville, Missouri. high in recent years, recent data indicate that Notice of the application, affording opportunity management has effected a program to moderate for interested persons to submit comments and such growth. Therefore, it appears that at the end views, has been given in accordance with section of the 12-year debt-servicing period Bank's gross 3(b) of the Act. The time for filing comments and capital to total assets ratio will be at an acceptable views has expired, and the application and all level. In light of the above facts, the financial and comments received have been considered in light managerial resources of Applicant and Bank are of the factors set forth in section 3(c) of the Act regarded as generally satisfactory and the future (12 U.S.C. § 1842(c)). prospects for each appear favorable. Applicant's Applicant, is the 418th largest banking organiprincipal has also taken actions, including providzation in Missouri, controlling the 611th largest ing and making plans to provide additional capital, bank in Missouri, which holds deposits of $5.0 to improve the financial conditions of the subsidimillion, or 0.02 percent of the total commercial ary banks of the affiliated holding companies. The bank deposits in the state.1 Acquisition of Bank financial and managerial resources and future ($7.1 million in deposits) would increase Appliprospects of each of these affiliated organizations cant's share of state deposits by only 0.03 percent and their subsidiary banks are considered generally satisfactory. Accordingly, banking factors are consistent with approval of the application. 1. All banking data are as of June 30, 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

872 Federal Reserve Bulletin • November 1979 and would not result in a significant increase in on the part of Applicant's or Bank's present manthe concentration of banking resources in Mis- agement, or participation by management of Apsouri. Bank is the fourth largest of six banking plicant or Bank in conduct by others, relevant to organizations operating in the Texas County the factors specified in section 3(c) of the Act, banking market, controlling 12.4 percent of com- that would support an adverse finding with respect mercial bank deposits in that market.2 Applicant's to these factors, including the managerial reexisting subsidiary bank is located approximately sources of Applicant, or warrant further post- 150 miles west of Bank in a separate banking ponement of consideration of this application has market, and no existing competition would be not been presented. It does not appear that the eliminated between Bank and Applicant's subsidi- purchase price paid for Bank's shares was unreaary bank by this proposal. The Board concludes sonable,3 and Applicant's principal exercised some that consummation of the proposal would not have care in consulting competent state authorities rean adverse effect upon competition. garding the propriety of his acquisition. Moreover, The financial and managerial resources and fu- other banking factors, including an increase in ture prospects of Applicant, its subsidiary bank, Bank's capital to which Protestants object, lend and Bank are generally satisfactory, particularly weight toward approval of the application. Finally, in light of commitments made by Applicant and the Board believes the record contains sufficient Applicant's principal in connection with this ap- information on the financial resources and future plication regarding maintenance of Bank's capital. prospects of Applicant and Bank for the Board Thus, banking factors lend weight toward approval to reach a conclusion on those aspects of the of this application. transaction even though, as Protestants point out, In reaching this conclusion, the Board has con- Applicant has only a brief operating history. sidered comments concerning this application re-' While consummation of the proposal would ceived from Bank's minority shareholders and result in no immediate changes in the services from members of Bank's community. In particu- offered by Bank, considerations relating to the lar, one shareholder, on behalf of owners of 40.4 convenience and needs of the communities to be percent of Bank's shares ("Protestants"), has served are consistent with approval of this applivoiced various objections to this proposal, cation. Based upon the foregoing and other conprincipally relating to purchase in 1978 of a con- siderations reflected in the record, it is the Board's trolling interest in Bank by Applicant's principal judgment that the proposed acquisition is in the and his failure to extend an equal offer to purchase public interest and that the application should be minority shares. In this connection, Protestants approved. allege violations of Missouri law and other impro- On the basis of the record, the application is prieties by Bank's selling shareholders, and other approved for the reasons summarized above. The actions adversely affecting minority shareholders. transaction shall not be consummated before the Under the Bank Holding Company Act, there thirtieth calendar day following the effective date are some limits to the Board's ability to entertain of this Order, or later than three months after the complaints by minority shareholders. A Federal effective date of this Order unless such period is Circuit Court has ruled that the Board may not extended for good cause by the Board, or by the deny applications under the Act solely because of Federal Reserve Bank of Kansas City pursuant to an applicant's failure to extend substantially equal delegated authority. purchase offers to minority shareholders. Western By order of the Board of Governors, effective Bancshares, Inc. v. Board of Governors, 480 F.2d September 21, 1979. 749 (10th Cir., 1973). However, if the company deals with minority shareholders unfairly or dis- Voting for this action: Chairman Volcker and Goverhonestly, that fact will reflect adversely upon the nors Schultz, Wallich, Partee, Teeters, and Rice. Absent and not voting: Governor Coldwell. integrity of a bank holding company's management. See, Benson Bancshares, Inc., (63 FED- (Signed) GRIFFITH L. GARWOOD, ERAL RESERVE BULLETIN 1009 (1977)). [SEAL] Deputy Secretary of the Board. After consideration of the record in this case, it is the Board's view that evidence sufficiently establishing a violation of law or other conduct 3. The price paid for Bank's shares was 1.5 times their book value on September 30, 1978, and the premium paid 2. The relevant banking market is approximated by Texas by Applicant's principal for the controlling shares approxi- County, Missouri. mated 4.5 percent of Bank's deposits as of that date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 873 Order Under Section 4 BCIA engages in the activities of selling proprieof Bank Holding Company Act tary insurance written for the benefit of Bank, Applicant and its nonbank subsidiaries,3 and in- Equimark Corporation surance directly related to extensions of credit by Pittsburgh, Pennsylvania Bank, specifically, mortgage life coverage on Bank's residential mortgage loans. CSLIC engages Order Approving Retention of in the reinsurance of credit life and credit accident Nottingham Corporation, Beaver County and health insurance directly related to extensions Insurance Agency, Inc., and of credit by Bank. Credit life insurance and credit Community Service Life Insurance Company accident and health insurance are generally made Equimark Corporation, Pittsburgh, Pennsyl- available by banks and other lenders and are devania, a bank holding company within the meaning signed to assure repayment of a loan in the event of the Bank Holding Company Act, has applied of death or disability of a borrower. for the Board's approval, under § 4(c)(8) of the Applicant's direct acquisition of Nottingham, a Act (12 U.S.C. § 1843(c)(8)) and § 225.4(b)(2) de novo subsidiary of Bank, and its indirect acof the Board's Regulation Y (12 C.F.R. quisition of CSLIC, a de novo subsidiary of Not- § 225.4(b)(2)), to retain Nottingham Corporation tingham, did not eliminate existing competition in ("Nottingham"), and its wholly owned subsidi- any relevant market. In addition, prior to its acaries, Beaver County Insurance Agency, Inc., quisition by Nottingham, BCIA was a subsidiary ("BCIA"), and Community Service Life Insur- of a bank that in 1964 was merged into Bank, ance Company ("CSLIC"), all of Pittsburgh, pursuant to the approval of the Comptroller of the Pennsylvania. BCIA engages in the activity of Currency. Therefore, it can be concluded that the acting as agent for the sale of credit-related insur- transaction did not have any adverse effects on ance and insurance for Applicant's bank, Equi- competition at that time. Furthermore, BCIA curbank, N.A. ("Bank"), Pittsburgh, Pennsylvania, rently competes with more than 50 insurance and CSLIC underwrites credit life and disability agencies in the Pittsburgh market,4 and BCIA, insurance directly related to Bank's extensions of CSLIC and Nottingham conduct their insurance credit. Such activities have been determined by agency and underwriting activities either for the the Board to be closely related to banking (12 benefit of, or solely in connection with extensions C.F.R. §§ 225.4(a)(9) and (10)). of credit by, Bank. Therefore, it is unlikely that Notice of the applications, affording opportunity Applicant's retention of these subsidiaries would for interested persons to submit comments and have any significantly adverse effects on competiviews on the public interest factors, has been duly tion. published (44 Federal Register 41,963 (1979)). Applicant's retention of Nottingham and BCIA The time for filing comments and views has ex- will ensure the continued availability of credit life pired, and the Board has considered the applica- and credit accident and health insurance to custions and all comments received in the light of tomers of Bank. In addition, in connection with the public interest factors set forth in § 4(c)(8) of the underwriting activities of CSLIC, Applicant the Act (12 U.S.C. § 1843(c)(8)). is aware that the Board has stated: Applicant is the seventh largest banking organi- To assure that engaging in the underwriting . zation in Pennsylvania with total deposits of $1.9 of credit life and credit accident and health billion, representing 3.6 percent of the total deinsurance can reasonably be expected to be posits in commercial banks in the state.1 Applicant in the public interest, the Board will only proposes to retain Nottingham, a shell corporation that exists primarily to hold the stock of BCIA and CSLIC and engages in no other activities.2 3. Applicant has committed that upon approval of this application, BCIA will immediately cease acting as agent for proprietary insurance written for the benefit of Applicant and 1. All banking data are as of June 30, 1978. its nonbank subsidiaries, in accordance with the decision in 2. Section 4 of the Act provides, in relevant part, that Alabama Association of Insurance Agents v. Board of Governonbanking activities acquired between June 30, 1968, and nors of the Federal Reserve System, 533 F.2d 224 (5th Cir. December 31, 1970, by a company that became a bank holding 1976), modified on rehearing, 558 F.2d 729 (1977), cert, company as a result of the 1970 Amendments to the Act may denied, 435 U.S. 904 (1978). not be retained beyond December 31, 1980, without prior 4. The Pittsburgh banking market is approximated by all Board approval. Applicant became a bank holding company of Allegheny County, the western third of Westmoreland as a result of the 1970 Amendments and acquired Nottingham, County, the northern half of Washington County, the southern BCIA and CSLIC between June 30, 1968 and December 31, three-quarters of Beaver County and the southern fringe of 1970. Butler County, all in Pennsylvania. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

874 Federal Reserve Bulletin • November 1979 approve applications in which an applicant Order Approved Under Bank Merger Act demonstrates that approval will benefit the Walker Bank and Trust Company, consumer or result in other public benefits. Salt Lake City, Utah Normally such a showing would be made by a projected reduction in rates or increase Milford State Bank, in policy benefits due to bank holding com- Milford, Utah pany performance of this service. (12 C.F.R. § 225.4(a)(10), n.7). Order Approving Application for Merger of Banks In this regard, Applicant has commited to reduce rates on credit life insurance by 2 percent Walker Bank and Trust Company, Salt Lake and on credit accident and health insurance by 5 City, Utah ("Applicant"), a state member bank percent upon receiving Board approval to retain of the Federal Reserve System, has applied for its reinsurance activities in Pennsylvania. The the Board's approval, pursuant to the Bank Merger Board is of the view that the availability of this Act (12 U.S.C. § 1828(c)), of the merger of service at reduced premiums is in the public inter- Applicant with Milford State Bank, Milford, Utah est. Furthermore, there is no evidence in the record ("Milford Bank"), under the charter and title of indicating that retention of these companies would Applicant. As an incident to the proposed merger, result in any undue concentration of resources, the existing offices of Milford Bank would become adverse effects on competition, conflicts of inter- branch offices of the resulting bank. ests, or other effects that would be adverse to the As required by the Bank Merger Act, notice public interest. of the proposed transaction was published in a Based upon the foregoing and other consid- form approved by the Board, and reports on comerations reflected in the record, including Appli- petitive effects were requested from the United cant's commitment to maintain on a continuing States Attorney General, the Comptroller of the basis the public benefits that the Board has found Currency, and the Federal Deposit Insurance Corto be normally expected to result from this pro- poration. The Board has considered the application posal and upon which the approval of this proposal and all comments and reports received in light of is based, the Board has determined that the balance the factors set forth in the Bank Merger Act. of the public interest factors the Board is required Applicant is the sole banking subsidiary of to consider under § 4(c)(8) is favorable. Accord- Western Bancorporation, Los Angeles, California ingly, the applications are hereby approved. This ("Western"), in the State of Utah. Applicant, the determination is subject to the conditions set forth third largest bank in Utah, controls deposits of in § 225.4(c) of Regulation Y and to the Board's $566 million, representing 12.1 percent of total authority to require such modification or termina- deposits in commercial banks in the state.1 Milford tion of the activities of a holding company or any Bank is the 25th largest bank in the state, with of its subsidiaries as the Board finds necessary to deposits of $16 million, representing 0.4 percent assure compliance with the provisions and pur- of statewide commercial bank deposits, and its poses of the Act and the Board's regulation and acquisition by Applicant would not alter Appliorders issued thereunder, or to prevent evasion cant's statewide rank or significantly increase its thereof. share of deposits in the state. Accordingly, con- By order of the Board of Governors, effective summation of the proposal would not have an September 28, 1979. appreciable effect on the concentration of banking resources in Utah. Milford Bank is the only bank in the relevant banking market, which is approximated by Beaver County, Utah. No significant competition exists Voting for this action: Chairman Volcker and Goverbetween Applicant and Milford Bank, since none nors Coldwell, Partee, Teeters, and Rice. Present and of Applicant's banking offices is located in the abstaining: Governor Schultz. Absent and not voting: Governor Wallich. Beaver County market, and no office of Applicant is closer than 48 miles from any office of Milford Bank. It also appears unlikely that any significant competition would develop between Applicant and (Signed) GRIFFITH L. GARWOOD, [SEAL] Deputy Secretary of the Board. 1. All banking data are as of September 30, 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 875 Bank in the future. Applicant is prevented by Southwest"), Dallas, Texas, a bank holding com- Utah's home office protection laws from establish- pany within the meaning of the Bank Holding ing a branch in Beaver County, and Western is Company Act, has requested a determination prohibited by section 3(d) of the Bank Holding under section 2(g)(3) of the Act (12 U.S.C. Company Act (12 U.S.C. § 1842(d)) from estab- § 1841(g)(3)), that Commerce Southwest is not in lishing another subsidiary bank in Utah. Thus, fact capable directly or indirectly of controlling consummation of the transaction would have no Mr. Clint W. Murchison, Jr. ("Murchison"), an significant adverse effects on competition. individual residing in Dallas, Texas, notwith- After examining information of record concern- standing the fact that Murchison is indebted to ing the financial and managerial resources of Ap- Bank. This request has been made in connection plicant, Milford Bank, and Western, the Board with a sale to Murchison by Applicant's subsidiconcludes that the financial and managerial re- ary, National Bank of Commerce ("Bank"), sources and future prospects of the institutions Dallas, Texas, of 91.6 percent of the outstanding involved are satisfactory. The financial and mana- voting shares of Dallas/Forth Worth Airport Nagerial resources and future prospects of the result- tional Bank ("Airport Bank"), Dallas, Texas. ing institution would also be satisfactory. Affilia- Under section 2(g)(3) of the Act, shares transtion with Applicant would afford Milford Bank ferred after January 1, 1966, by any bank holding access to Applicant's financial and managerial company to a transferee that is indebted to the resources, and provide its customers with access transferor are deemed to be owned or controlled to an expanded line of banking services. There- by the transferor unless the Board, after opportufore, considerations relating to the convenience nity for hearing, determines that the transferor is and needs of the community to be served lend not in fact capable of controlling the transferee. some weight toward approval of the application. Although the shares of Airport Bank sold to Mur- Based upon the foregoing and other considerations chison were owned and transferred by Bank, a reflected in the record, it is the Board's judgment determination respecting Commerce Southwest is that the proposed acquisition is in the public inter- necessary because, under section 2(g)(1) of the est and that the application should be approved. Act, it is deemed to own indirectly shares owned On the basis of the record and for the reasons by its subsidiary bank.1 Commerce Southwest has summarized above, the application to merge and, not requested a hearing, but it has submitted to incident thereto, to establish branches, is ap- the Board evidence to support its contention that proved. The transaction shall not be consummated it is not in fact capable of controlling Murchison, before the thirtieth calendar day following the either directly or through Bank. effective date of this Order or later than three On the basis of the following facts of record, months after the date of this Order, unless such it is hereby determined that Commerce Southwest period is extended for good cause by the Board is not in fact capable of controlling Murchison. or by the Federal Reserve Bank of San Francisco Commerce Southwest acquired indirect ownership pursuant to delegated authority. of shares of Airport Bank when it became a bank By order of the Board of Governors, effective holding company by acquiring Bank. Bank has September 14, 1979. acquired the shares of Airport Bank in satisfaction Voting for this action: Chairman Volcker and Gover- of a debt previously contracted in good faith. The nors Wallich, Teeters, and Rice. Absent and not voting: record reflects that the sale of Airport Bank to Governors Schultz, Coldwell, and Partee. Murchison was negotiated at arms-length; that (Signed) GRIFFITH L. GARWOOD, Murchison is not an officer, director, or share- [SEAL] Deputy Secretary of the Board. holder of Applicant or any of its subsidiaries; and that there are no officer or director interlocks between Applicant or Bank and Airport Bank. It Order Under Section 2 appears that Murchison purchased the shares of of Banking Holding Company Act Airport Bank as an investment for his own account and not as a nominee or representative of any other Commerce Southwest, Inc., party. The terms governing the debt relationship Dallas, Texas between Murchison and Bank are generally limited Order Granting Determination 1. This request was made by Applicant pursuant to its Under the Bank Holding Company Act commitment in connection with its application to become a bank holding company. Commerce Southwest, Inc., (65 FED- Commerce Southwest, Inc. ("Commerce ERAL RESERVE BULLETIN 66 n.4 (1979)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

876 Federal Reserve Bulletin • November 1979 to those reasonably required, in accordance with Commerce Southwest for a determination pursuant sound and accepted banking practices, to secure to section 2(g)(3) is granted. This determination Bank's extension of credit. Bank's board of direc- is based on representations made to the Board by tors has adopted a resolution that it does not, and Commerce Southwest and Murchison. In the event will not attempt to, exercise control over Airport that the Board should hereafter determine that facts Bank or any of its officers, directors, or share- material to this determination are otherwise than holders. In addition, Murchison has filed an affi- as represented, or that Commerce Southwest or davit to the effect that he is not, and will not be, Murchison has failed to disclose to the Board other controlled by Applicant or Bank, and will not material facts, this determination may be revoked, represent their interests in his management of and any change in the facts and circumstances Airport Bank. relied upon in making this determination could Furthermore, although Murchison is indebted to result in the Board's reconsideration of this deter- Bank for a substantial portion of the purchasing mination. price, it appears that he has sufficient personal By order of the Board of Governors, acting resources to resist an attempt to control him or through its General Counsel, pursuant to delegated influence his management of Airport Bank, and authority (12 C.F.R. § 265.2(b)(1)), effective to minimize the possibility that it may become September 4, 1979. necessary for Applicant to reacquire shares of Airport Bank as a result of default. (Signed) GRIFFITH L. GARWOOD, Accordingly, it is ordered that the request of [SEAL] Deputy Secretary of the Board. ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During October 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) Arapahoe County Funding Company, Arapahoe Bank and Trust, September 14, 1979 Englewood, California Englewood, California Basalt Bancorp, Inc., Bank of Basalt, September 24, 1979 Basalt, Colorado Basalt, Colorado Cabool Banshares, Inc., Cabool State Bank, September 17, 1979 Chesterfield, Missouri Cabool, Missouri Continental Banksystem, Inc., St. Anthony Park State Bank, September 20, 1979 St. Paul, Minnesota St. Paul, Minnesota First Osmond Corporation, Osmond State Bank, September 12, 1979 Osmond, Nebraska Osmond, Nebraska Kilgore Bancshares, Inc., Farmers State Bank, September 10, 1979 Kilgore, Nebraska Kilgore, Nebraska Marion Bank Holding Company, State Bank of Marion, September 25, 1979 Marion, North Dakota Marion, North Dakota Meno Bancshares, Inc., Meno Guaranty Bank, September 20, 1979 Meno, Oklahoma Meno, Oklahoma Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 877 Section 3 Board action (effective Applicant Bank(s) date) National City Corporation, The Citizens National Bank, September 28, 1979 Cleveland, Ohio Bryon, Ohio SCB Financial Corporation, The Smith County State Bank and September 12, 1979 Smith Center, Kansas Trust Company, Smith Center, Kansas Seneca Bancshares, Inc., Seneca State Bank of Wichita, September 26, 1979 Wichita, Kansas Wichita, Kansas Southwest Florida Banks, Inc. The Palmetto Bank and Trust Company, September 7, 1979 Fort Meyers, Florida Palmetto, Florida Victoria Bankshares, Inc., The First State Bank of Taft, September 25, 1979 Victoria, Texas Taft, Texas Section 4 Nonbanking company Effective Applicant (or activity) date R & B Management Corporation Sale of insurance September 26, 1979 Washington, 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 Bank(s) Bank date Bank of Virginia Company, Community Bank and Trust Richmond September 26, 1979 Richmond, Virginia of August County, Verona, Virginia First Banc Group of Ohio, Hardin National Bank, Cleveland September 4, 1979 Inc., Columbus, Ohio Kenton, Ohio Sun Banks of Florida, Cape Coral Bank and Atlanta September 25, 1979 Orlando, Florida Trust, Cape Coral, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

878 Federal Reserve Bulletin • November 1979 ORDERS APPROVED UNDER BANK MERGER ACT Reserve Effective Applicant Bank(s) Bank date Central Fidelity Bank, Central Fidelity Bank Richmond September 7, 1979 Baileys Crossroads, NA, Herndon, Fairfax Fairfax County, Virginia County, Virginia United Virginia Bank/Common- United Virginia Bank, Richmond September 27, 1979 wealth, Richmond, Virginia Richmond, Virginia PENDING CASES INVOLVING THE BOARD OF GOVERNORS Does not include suits against the Federal Reserve Banks in which the Board of Governors is not named a party. September 1978, U.S.C.A. for the District of Donald W. Riegel, Jr. v. Federal Open Market Columbia. Committee, filed July 1979, U.S.D.C. for the Beckley v. Board of Governors, filed July 1978, District of Columbia. U.S.C.A. for the Northern District of Illinois. Connecticut Bankers Association, et al., v. Board Independent Bankers Association of Texas v. First of Governors, filed May 1979, U.S.C.A. for National Bank in Dallas, et al., filed July 1978, the District of Columbia. U.S.C.A. for the Northern District of Texas. Ella Jackson et al., v. Board of Governors, filed Mid-Nebraska Bancshares, Inc. v. Board of Gov- May 1979, U.S.C.A. for the Fifth Circuit. ernors, filed July 1978, U.S.C.A. for the Dis- Memphis Trust Company v. Board of Governors, trict of Columbia. filed May 1979, U.S.C.A. for the Sixth Circuit. United States League of Savings Associations v. U.S. Labor Party v. Board of Governors, filed Board of Governors, filed May 1978, U.S.D.C. April 1979, U.S.C.A. for the Second Circuit. for the District of Columbia. U.S. Labor Party v. Board of Governors, filed Security Bancorp and Security National Bank v. April 1979, U.S.C.A. for the Second Circuit. Board of Governors, filed March 1978, Independent Insurance Agents of America, et al., U.S.C.A. for the Ninth Circuit. v. Board of Governors, filed May 1979, Wisconsin Bankers Association v. Board of Gov- U.S.C.A. for the District of Columbia. ernors, filed January 1978, U.S.C.A. for the Independent Insurance Agents of America, et al., District of Columbia. v. Board of Governors, filed April 1979, Vickars-Henry Corp. v. Board of Governors, filed U.S.C.A. for the District of Columbia. December 1977, U.S.C.A. for the Ninth Cir- Independent Insurance Agents of America, et al., cuit. v. Board of Governors, filed March 1979, Investment Company Institute v. Board of Gover- U.S.C.A. for the District of Columbia. nors, filed September 1977, U.S.D.C. for the Credit and Commerce American Investment, et District of Columbia. al., v. Board of Governors, filed March 1979, Roberts Farms, Inc. v. Comptroller of the Cur- U.S.C.A. for the District of Columbia. rency, et al., filed November 1975, U.S.D.C. Consumers Union of the United States, v. G. for the Southern District of California. William Miller, et al., filed December 1978, David R. Merrill, et al., v. Federal Open Market U.S.D.C. for the District of Columbia. Committee of the Federal Reserve System, filed Manchester-Tower Grove Community Organi- May 1975, U.S.D.C. for the District of Columzation/ACORN v. Board of Governors, filed bia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 1 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 with assets of $1 billion or more banks A22 Banks in New York City A6 Federal funds transactions of money A23 Balance sheet memoranda market banks A24 Commercial and industrial loans POLICY INSTRUMENTS A24 Major nondeposit sources of funds of commercial banks A8 Federal Reserve Bank interest rates A25 Gross demand deposits of individuals, A9 Member bank reserve requirements partnerships, and corporations A10 Maximum interest rates payable on time and savings deposits at federally insured institutions FINANCIAL MARKETS All Federal Reserve open market A25 Commercial paper and bankers dollar transactions acceptances outstanding A26 Prime rate charged by banks on short-term business loans FEDERAL RESERVE BANKS A26 Terms of lending at commercial banks A12 Condition and Federal Reserve note A27 Interest rates in money and capital statements markets A13 Maturity distribution of loan and A28 Stock market—Selected statistics security holdings A29 Savings institutions—Selected assets and liabilities MONETARY AND CREDIT AGGREGATES A13 Bank debits and deposit turnover FEDERAL FINANCE A14 Money stock measures and components A30 Federal fiscal and financing operations A15 Aggregate reserves and deposits of A31 U.S. budget receipts and outlays member banks A32 Federal debt subject to statutory A15 Loans and investments of all limitation commercial banks A32 Gross public debt of U.S. Treasury— Types and ownership COMMERCIAL BANK ASSETS AND LIABILITIES A33 U.S. government marketable securities—Ownership, by maturity A16 Last-Wednesday-of-month series A34 U.S. government securities dealers— A17 Call-date series Transactions, positions, and financing A18 Detailed balance sheet, September 30, 1978 A35 Federal and federally sponsored credit agencies—Debt outstanding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • November 1979 SECURITIES MARKETS AND International Statistics CORPORATE FINANCE A54 U.S. international transactions— A36 New security issues—State and local Summary governments and corporations A55 U.S. foreign trade A37 Open-end investment companies—Net A55 U.S. reserve assets sales and asset position A56 Foreign branches of U.S. banks— A37 Corporate profits and their distribution Balance sheet data A38 Nonfinancial corporations—Assets and A58 Selected U.S. liabilities to foreign liabilities official institutions A38 Business expenditures on new plant and equipment REPORTED BY BANKS IN THE UNITED STATES A39 Domestic finance companies—Assets A58 Liabilities to and claims on foreigners and liabilities; business credit 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 A44 Funds raised in U.S. credit markets A64 Foreign official assets held at Federal A45 Direct and indirect sources of funds to Reserve Banks credit markets A65 Foreign transactions in securities Domestic Nonfinancial Statistics REPORTED BY NONBANKING BUSINESS A46 Nonfinancial business activity— ENTERPRISES IN THE UNITED STATES Selected measures A66 Liabilities to unaffiliated foreigners A46 Output, capacity, and capacity A67 Claims on unaffiliated foreigners utilization A47 Labor force, employment, and INTEREST AND EXCHANGE RATES unemployment A48 Industrial production—Indexes and A68 Discount rates of foreign central banks gross value A68 Foreign short-term interest rates A50 Housing and construction A51 Consumer and wholesale prices A69 Guide to Tabular Presentation and A52 Gross national product and income 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 1979 1979 Q3 Q4 Q1 Q2 Apr. May June July Aug. Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)^ Member bank reserves 1 Total 8.6 2.3 -2.9 -4.9 -4.9 -4.9 -1.8 12.0 7.2 2 Required 8.6 2.1 -2.8 -4.8 -5.5 -3.9 -4.1 12.3 7.0 3 Nonborrowed 6.6 4.6 -3.3 -8.8 -2.9 -30.6 8.9 20.0 10.0 9.3 8.4 5.7 4.0 4.9 3.1 6.1 '11.0 12.1 Concepts of money2 5 M-l 7.9 4.1 -2.1 7.6 1177..77 .7 1144..88 1100..11 7. 1 6 M-l-f 6.1 2.7 -5.0 '3.7 11.4 >--2.1 r 12. 3 no.2 6.5 7 M-2 9.8 7.6 1.8 8.6 14.1 5.4 14.2 >-12.9 11.0 8 M-3 10.3 9.3 4.7 7.9 10.5 4.9 11.9 Ml.4 9.9 Time and savings deposits Commercial banks 9 Total 11.3 12.3 8.4 1.2 2.1 -1.4 .8 12.2 14.6 10 Savings 2.9 .2 -9.6 -3.1 0 -7.2 7.8 9.4 6.6 11 Other time 17.9 18.2 15.6 18.5 19.8 19.9 17.6 18.1 19.4 12 Thrift institutions 3 11.1 11.6 8.8 6.8 5.6 4.1 8.8 9.3 8.3 13 Total loans and investments at commercial banks4 13.3 12.7 13.2 11.9 r13.9 '8.8 r12. 5 M3.3 11.6 1978 1979 1979 Q4 Ql Q2 Q3 May June July Aug. Sept. Interest rates (levels, percent per annum) Short-term rates 14 Federal funds 5 9.58 10.07 10.18 10.94 10.24 10.29 10.47 10.94 11.43 15 Federal Reserve discount6 9.09 9.50 9.50 10.21 9.50 9.50 9.69 10.24 10.70 16 Treasury bills (3-month market yield) 7 8.57 9.38 9.38 9.67 9.61 9.06 9.24 9.52 10.26 17 Commercial paper (90- to 119-day)7.8 9.83 10.04 9.85 10.64 9.95 9.76 9.87 10.43 11.63 Long-term rates Bonds 18 U.S. government9 8.78 9.03 9.08 9.03 9.21 8.91 8.92 8.97 9.21 19 State and local government 6.28 6.37 6.22 n.a. 6.25 6.13 6.13 6.20 n.a. 20 Aaa utility (new issue)11 9.23 9.58 9.66 n.a. 9.83 9.50 9.58 9.48 n.a. 21 Conventional mortgages12 10.12 10.33 10.35 n.a. 10.80 10.90 10.95 11.10 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-l-f 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 Nonfinancial Statistics • October 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 July Aug. Sept." Aug. 15 Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 P Sept. 26P SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 131,585 131,441 133,598 131,144 132,427 131,884 132,989 131,834 133,949 134,188 2 U.S. government securities1 109,921 111,639 112,967 110,829 112,394 112,887 113,147 110,041 112,599 114,746 3 Bought outright 108,673 111,044 112,421 111100,,336622 111,446 111111,,996677 111122,,666666 111100,,004411 111122,,338888 111133,,447788 4 Held under repurchase agreements 1,248 595 546 467 948 920 481 0 211 1,268 5 Federal agency securities. 8,377 8,519 8,524 8,366 8,729 8,757 8,381 8,234 8,373 8,626 6 Bought outright 77,,885544 8,243 8,229 8,243 88,,224433 88,,224433 88,,224422 88,,223344 88,,222244 88,,222244 7 Held under repurchase agreements 523 276 295 123 486 514 139 0 149 402 8 Acceptances 717 388 316 411 572 429 434 0 102 382 9 Loans 1,179 1,097 1,345 1,023 1,386 1,117 1,340 1,230 1,763 1,161 10 Float 5,758 4,884 5,906 5,241 4,818 4,218 5,072 7,423 6,648 5,163 11 Other Federal Reserve assets 5,633 4,915 4,540 5,274 4,527 4,475 4,614 4,905 4,464 4,110 12 Gold stock 1111,,229999 1111,,226666 1111,,223399 1111,,225599 1111,,225599 1111,,225599 1111,,225599 1111,,225555 1111,,222288 1111,,222288 13 Special drawing rights certificate account 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 14 Treasury currency outstanding 12,446 12,533 12,627 12,501 12,551 12,564 12,672 12,610 12,631 12,645 ABSORBING RESERVE FUNDS 15 Currency in circulation 117,701 118,248 119,092 118,512 118,362 118,051 119,057 119,683 119,236 118,642 16 Treasury cash holdings 335 265 288 267 266 265 269 268 289 307 Deposits, other than member bank reserves, with Federal Reserve Banks 17 Treasury 3,303 3,021 4,073 2,957 3,183 2,986 3,359 3,348 3,469 4,553 18 Foreign 288 294 319 294 293 277 335 354 321 262 19 Other 761 634 716 608 562 607 722 616 876 622 20 Other Federal Reserve liabilities and capital 44,,555511 44,,557722 4,697 4,387 44,,771188 44,,885566 4,837 44,,332277 44,,661122 44,,884488 21 Member bank reserves with Federal Reserve Banks 30,191 30,006 30,079 29,680 30,653 30,467 30,141 28,902 30,805 30,628 End-of-month figures Wednesday figures 1979 July Aug. Sept.p Aug. 15 Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19*> Sept. 26p SUPPLYING RESERVE FUNDS 22 Reserve bank credit outstanding 131,474 132,299 135,389 131,667 132,129 135,907 131,694 127,731 129,718 135,433 23 U.S. government securities1 111,445 113,027 115,458 109,801 111,222 115,135 111,168 105,786 109,812 115,005 24 Bought outright 109,366 111122,,663355 114,596 109,801 111,222 113,028 111,168 110055,,778866 110099,,881122 111133,,885522 25 Held under repurchase agree- 2,079 392 862 0 0 2,107 0 0 0 1,153 26 Federal agency securities 8,881 8,395 9,323 8,243 8,243 8,999 8,242 8,224 8,224 8,532 27 Bought outright 8,243 8,242 8,224 8,243 8,243 8,242 8,242 8,224 8,224 8,224 28 Held under repurchase agreements 638 153 1,099 0 0 757 0 0 0 308 29 Acceptances 1,159 475 1,053 0 0 699 0 0 0 684 30 Loans 852 1,572 1,157 2,707 1,509 919 1,060 2,532 964 1,820 31 Float 3,896 4,209 3,049 6,456 6,681 5,575 6,197 6,453 6,112 5,200 32 Other Federal Reserve assets 5,241 4,621 5,349 4,460 4,474 4,580 5,027 4,736 4,606 4,192 33 Gold stock 1111,,229900 1111,,225599 1111,,222288 1111,,225599 11,259 11,259 1111,,225599 1111,,222299 1111,,222288 1111,,222288 34 Special drawing rights certificate account 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 35 Treasury currency outstanding 12,599 12,724 12,645 12,521 12,560 12,589 12,608 12,615 12,634 12,645 ABSORBING RESERVE FUNDS 36 Currency in circulation 117,896 118,914 118,550 118,834 118,427 118,708 119,779 119,891 119,164 118,954 37 Treasury cash holdings 262 268 324 268 264 272 268 277 306 306 Deposits, other than member bank reserves, with Federal Reserve Banks 38 Treasury 2,765 3,542 6,489 3,805 2,851 3,176 2,853 3,126 2,786 5,483 39 Foreign 373 325 348 312 262 308 312 317 259 275 40 Other 636 663 780 674 534 541 680 568 686 571 41 Other Federal Reserve liabilities and capital 4,951 4,876 5,086 4,510 4,717 4,993 4,378 4,493 4,597 4,855 42 Member bank reserves with Federal Reserve Banks 30,279 29,493 29,485 28,844 30,693 33,558 29,092 24,702 27,581 30,662 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 1978 1979 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.? All member banks Reserves 1 At Federal Reserve Banks 31,158 31,935 30,485 30,399 30,675 30,208 29,822 30,191 30,006 30,079 2 Currency and coin 10,330 11,093 10,074 9,776 9,737 10,044 10,154 10,552 10,523 10,727 3 Total held i 41,572 43,167 40,703 40,316 40,546 40,382 40,105 40,900 40,687 40,958 4 Required 41,447 42,865 40,494 40,059 40,548 40,095 39,884 40,710 40,494 40,860 5 Excess1 125 302 209 257 -2 287 221 190 193 98 Borrowings at Federal Reserve 6 Total 874 994 973 999 897 1,777 1,396 1,179 1,097 1,345 7 Seasonal 134 112 114 121 134 173 188 168 177 178 Large banks in New York City 8 Reserves held 7,120 7,808 6,995 6,892 6,804 66,,665588 66,,334466 6,605 6,408 6,359 7,243 7,690 6,976 6,845 6,837 6,544 6,415 6,586 6,427 6,378 10 Excess -123 118 19 47 -33 114 -69 19 -19 -19 99 117 0 45 61 150 78 97 79 87 Large banks in Chicago 1,907 2,011 1,824 11,,882222 11,,880011 11,,773300 11,,772266 1,709 1,694 1,697 1,900 2,010 1,823 1,809 1,824 1,712 1,697 1,713 1,706 1,760 7 1 1 13 -23 18 29 -4 -12 -63 15 Borrowings2 10 23 10 26 18 60 64 45 6 80 Other large banks 16 Reserves held 16,446 16,942 16,055 15,844 15,948 15,926 15,989 16,374 16,370 15,900 16,342 16,923 16,018 15,802 16,014 15,893 15,877 16,339 16,321 16,487 104 19 37 42 -66 33 112 35 49 -587 19 Borrowings2 276 269 275 215 271 721 586 517 484 603 All other banks 20 Reserves held 16,099 16,406 15,829 15,758 15,993 16,068 16,044 16,212 16,215 16,302 15,962 16,242 15,677 15,603 15,873 15,946 15,895 16,072 16,040 16,235 22 Excess 137 164 152 155 120 122 149 140 175 67 23 Borrowings2 489 585 688 713 547 846 668 520 528 575 Weekly averages of daily figures for weeks ending 1979 July 25 Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19f Sept. 26p All member banks Reserves 24 At Federal Reserve Banks 30,616 30,185 29,286 29,680 30,653 30,467 30,141 28,902 30,805 30,628 25 Currency and coin 10,427 10,804 10,813 10,888 9,846 10,484 10,596 11,134 10,169 10,838 26 Total held i 41,200 41,146 40,256 40,727 40,657 41,108 40,894 40,193 41,124 41,615 27 Required 41,214 40,856 40,115 40,428 40,643 40,738 40,489 40,095 40,711 41,522 28 Excess1 -14 290 141 299 14 370 405 98 413 93 Borrowings at Federal Reserve Banks2 29 Total 1,292 946 762 1,023 1,386 1,117 1,340 1,230 1,763 1,161 30 Seasonal 167 173 176 169 174 186 172 153 207 180 Large banks in New York City 6,573 6,608 6,349 6,482 6,475 6,472 6,603 6,236 6,114 6,279 6,624 6,544 6,323 6,489 6,447 6,419 6,470 6,292 6,155 6,395 -51 64 26 -7 28 53 133 -56 -41 -116 7 0 24 209 14 50 214 139 0 29 Large banks in Chicago 1,735 1,691 1,694 1,761 1,685 1,693 1,734 1,678 1,607 1,719 1,743 1,663 1,691 1,749 1,696 1,687 1,733 1,679 1,764 1,803 37 Excess -8 28 3 12 -11 6 1 — 1 -157 -84 7 64 0 0 0 29 0 0 343 0 Other large banks 16,479 16,478 16,170 16,388 16,304 16,537 16,280 16,160 16,276 15,945 16,524 16,438 16,181 16,297 16,377 16,438 16,231 16,188 16,613 16,730 -45 40 -11 91 -73 99 49 -28 -337 -785 694 308 256 360 846 427 505 512 860 587 All other banks 43 Reserves held. 16,413 16,369 16,043 16,096 16,193 16,406 16,277 16,119 16,177 16,656 16,323 16,211 15,920 15,893 16,123 16,194 16,055 15,936 16,179 16,594 45 Excess 90 158 123 203 70 212 222 183 -2 62 46 Borrowings2 584 574 482 454 526 611 621 579 560 545 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 Nonfinancial Statistics • October 1979 1.13 FEDERAL FUNDS TRANSACTIONS Money Market Banks Millions of dollars, except as noted 1979, week ending Wednesday TTyyppee Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 Total, 46 banks Basic reserve position 1 Excess reserves1 58 69 82 39 173 226 -57 62 4 LESS: 2 Borrowings at Federal Reserve Banks 173 64 238 318 174 296 300 692 269 3 Net interbank federal funds transactions 1188,,006666 2222,,223355 2211,,550088 2200,,997722 1177,,554499 2200,,556633 2255,,001111 2211,,882222 1199,,883388 EQUALS: Net surplus, or deficit ( —) 4 Amount --1188,,118811 --2222,,223311 --2211,,666633 -21,251 --1177,,554499 --2200,,663344 --2255,,336688 --2222,,445533 --2200,,110022 5 Percent of average required 106.2 132.3 126.4 124.6 102.8 121.0 150.8 131.8 115.4 Interbank federal funds transactions Gross transactions 6 Purchases 26,167 29,858 30,034 28,941 26,823 30,397 33,098 30,764 28,475 7 Sales 8,101 7,623 8,527 7,969 9,275 9,833 8,087 8,941 8,637 8 Two-way transactions2 6,312 6,386 6,075 5,846 6,460 7,573 6,813 6,280 6,338 Net transactions 9 Purchases of net buying banks 19,854 23,473 23,959 23,095 20,346 22,823 26,286 24,484 22,136 10 Sales of net selling banks 1,789 1,237 2,452 2,123 2,815 2,260 1,274 2,661 2,300 Related transactions with U.S. government securities dealers 11 Loans to dealers 3 2,529 3,959 2,730 3,246 2,646 3,519 4,780 3,581 2,865 12 Borrowings from dealers4 2,146 1,814 1,883 2,240 1,980 1,970 2,069 2,418 1,917 13 Net loans 383 2,144 847 1,007 666 1,549 2,712 1,163 948 8 banks in New York City Basic reserve position 14 Excess reserves1 7 47 17 39 85 189 -6 16 6 LESS: 15 Borrowings at Federal Reserve Banks 0 0 205 14 0 114 125 0 29 16 Net interbank federal funds transactions 5,412 6,539 5,505 5,378 3,675 5,831 7,094 5,791 55,,660022 EQUALS: Net surplus, or deficit ( —) 17 Amount -5,405 -6,492 -5,693 -5,353 -3,591 -5,757 --77,,222255 -5,774 --55,,662255 18 Percent of average required 92.0 114.0 97.5 92.0 62.0 98.4 126.8 104.2 97. 1 Interbank federal funds transactions Gross transactions 6,359 7,453 6,509 6,225 5,174 7,512 8,316 7,745 6,700 20 Sales 946 914 1,004 847 1,499 1,681 1,222 1,955 1,098 21 Two-way transactions2 947 914 1,005 847 1,336 1,681 1,222 11,,220088 11,,008822 Net transactions 22 Purchases of net buying banks 5,412 6,539 5,505 5,377 3,838 5,831 7,094 6,538 5,617 23 Sales of net selling banks 0 0 0 0 163 0 0 747 16 Related transactions with U.S. government securities dealers 24 Loans to dealers 3 1,613 2,735 1,732 2,199 1,615 2,258 3,401 2,408 1,842 727 783 823 667 789 855 821 1,339 811 886 1,952 909 1,532 826 1,403 2,580 1,068 1,031 38 banks outside New York City Basic reserve position 50 22 66 0 89 37 -51 45 -2 LESS: 28 Borrowings at Federal Reserve 173 64 33 304 174 182 175 692 240 29 Net interbank federal funds transactions 12,654 15,696 16,003 15,595 13,874 1144,,773322 1177,,119977 1166,,003322 1144,,223366 EQUALS: Net surplus, or deficit ( —) 30 Amount -12,777 -15,739 -15,970 -15,898 -13,958 -14,877 -18,143 -16,678 --1144,,447788 31 Percent of average required 113.7 141.6 141.4 141.4 123.7 132.8 162.6 145.1 124.6 Interbank federal funds transactions Gross transactions 19,808 22,405 23,525 22,716 21,649 22,885 24,782 23,018 21,775 33 Sales 7,154 6,709 7,522 7,121 7,776 8,152 6,865 6,978 7,540 34 Two-way transactions2 5,366 5,472 5,070 4,998 5,124 5,892 5,591 55,,007722 55,,225566 Net transactions 35 Purchases of net buying banks 14,442 16,934 18,455 17,718 16,525 16,993 19,191 17,946 16,519 36 Sales of net selling banks 1,789 1,237 2,452 2,123 2,652 2,260 1,274 1,914 2,284 Related transactions with U.S. government securities dealers 37 Loans to dealers3 916 1,224 998 1,048 1,031 1,261 1,380 1,173 1,023 38 Borrowings from dealers4 1,419 1,031 1,060 1,572 1,190 1,115 1,248 1,078 1,106 39 Net loans -502 192 -63 -525 -160 146 132 95 -83 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Funds A 7 1.13 Continued 1979, week ending Wednesday Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 5 banks in City of Chicago Basic reserve position 40 Excess reserves1 3344 1177 1177 00 1188 3 - 1 --1144 -1 LESS: 41 Borrowings at Federal Reserve 6622 0 00 00 2299 00 00 334433 0 42 Net interbank federal funds transactions 5,968 6,729 8,076 8,130 7,961 88,,222288 8,120 66,,992222 7,104 EQUALS: Net surplus, or deficit ( —) 43 Amount -5,996 -6,713 -8,059 -8,130 -7,972 --88,,222255 -8,122 -7,278 -7,105 44 Percent of average required 388.0 426.0 493.7 514.4 507.9 509.0 520.2 442.5 421.7 Interbank federal funds transactions Gross transactions 7,377 8,308 9,314 9,535 9,073 9,530 9,407 8,403 8,406 46 Sales 1,409 1,579 1,238 1,405 1,112 1,302 1,287 1,481 1,302 47 Two-way transactions2 1,409 1,579 1,238 1,405 1,112 1,302 1,287 1,481 1,302 Net transactions 48 Purchases of net buying banks 5,968 6,729 8,076 8,130 7,961 8,228 8,120 6,922 7,104 49 Sales of net selling banks 0 0 0 0 0 0 0 0 0 Related transactions with U.S. government securities dealers 127 144 120 184 230 247 329 198 190 51 Borrowings from dealers4 54 6 6 42 81 15 52 12 170 73 138 115 142 149 232 277 187 20 33 other banks Basic reserve position 16 5 4499 0 71 34 -50 59 -1 LESS: 54 Borrowings at Federal Reserve 111 64 33 304 145 182 175 349 240 55 Net interbank federal funds 6,686 8,967 7,927 7,465 5,913 6,504 9,797 9,110 7,132 EQUALS: Net surplus, or deficit ( —) 56 Amount -6,781 -9,027 -7,912 -7,768 -5,987 -6,652 -10,022 -9,400 -7,373 57 Percent of average required 69.6 94.6 81.9 80.4 61.6 69.4 104.4 95.5 74.2 Interbank federal funds transactions Gross transactions 12,431 14,097 14,211 13,182 12,576 13,354 15,376 14,615 13,370 59 Sales 5,746 5,130 6,284 5,717 6,664 6,850 5,579 5,506 6,238 60 Two-way transactions2 3,957 3,893 3,832 3,594 4,012 4,590 4,305 3,591 33,,995555 Net transactions 61 Purchases of net buying banks 8,474 10,204 10,379 9,588 8,564 8,765 11,071 11,024 9,415 62 Sales of net selling banks 1,789 1,237 2,452 2,123 2,652 2,260 1,274 1,914 2,284 Related transactions with U.S. government securities dealers 63 Loans to dealers3 789 1,080 878 864 800 1,014 1,051 975 834 64 Borrowings from dealers4 1,365 1,025 1,055 1,531 1,109 1,100 1,196 1,067 936 65 Net loans -576 55 -177 -667 -309 -85 -145 -92 -103 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 Nonfinancial Statistics • October 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 sees. 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 9/30/79 date rate 9/30/79 date rate 9/30/79 date rate 9/30/79 date rate Boston 11 9/19/79 IO1/2 11% 9/19/79 11 12 9/19/79 11% 14 9/19/79 13% New York 11 9/19/79 10% 11% 9/19/79 11 12 9/19/79 11% 14 9/19/79 13% Philadelphia 11 9/21/79 10% 11% 9/21/79 11 12 9/21/79 11% 14 9/21/79 13% Cleveland 11 9/19/79 10% 11% 9/19/79 11 12 9/19/79 11% 14 9/19/79 13% Richmond 11 9/19/79 10% 11% 9/19/79 11 12 9/19/79 11% 14 9/19/79 13% Atlanta 11 9/19/79 10% 11% 9/19/79 11 12 9/19/79 11% 14 9/19/79 13% Chicago 11 9/19/79 10% 11% 9/19/79 11 12 9/19/79 11% 14 9/19/79 13% St. Louis 11 9/19/79 10% 11% 9/19/79 11 12 9/19/79 11% 14 9/19/79 13% Minneapolis 11 9/19/79 10% 11% 9/19/79 11 12 9/19/79 11% 14 9/19/79 13% Kansas City 11 9/20/79 10% 11% 9/20/79 11 12 9/20/79 11% 14 9/20/79 13% Dallas 11 9/19/79 10% 11% 9/19/79 11 12 9/19/79 11% 14 9/19/79 13% San Francisco.... 11 9/19/79 10% 11% 9/19/79 11 12 9/19/79 11% 14 9/19/79 13% 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—July 2 7 7 1977—Aug. 30 514-534 51/4 Aug. 14 7-7% 7% 31 51/4-534 534 1971-—Jan. 8, 514-5% 51/4 23 7% 7% Sept. 2 5% 15, 5V4 51/4 Oct. 26 6 6 19 5-5V4 5^4 1974—Apr. 25 7%-8 8 2 2 2 9 , , 5 5 - 5 y4 5 5 Dec. 3 9 0 73/ 8 4 -8 7 8 % 1978—Jan. 2 9 0 6 6% -6 % 6 6 % % Feb. 1 1 3 9 4V 4 4 V - 4 5 4 5 3 /4 16 m m May 1 1 1 2 6% 7 -7 7 7 July 16 4V4-5 5 1975—Jan. 6 714-73/4 m July 3 7-71/4 71/4 23, 5 5 10 71/4-73/4 71/4 10 71/4 71/4 Nov. 11 4%-5 5 24 VA 71/4 Aug. 21 73/4 734 Dec. 1 13 9 , 41 4 4 * - 4 4 % 4 4 V *4 4 Feb. 5 7 6!4 6 - * 7 4 i /4 6 6 3 * y 4 A S O e c p t. t . 2 1 2 6 8 8 -8% 8 8 % 17, 4%~4% 4 % Mar. 10 614 20 8% 8% 24, 4% 4% 14 61/4 61/4 Nov. 1 8%-9% 9% May 16 6-6V4 6 3 9% 9% 1973-—Jan. 15 5 5 23 6 6 Feb. 26 5-5% 5 Vi 1979—July 20 10 10 Mar. 2 5 % 5% 1976—Jan. 19 5%-6 5% Aug. 17 10-10% 10% Apr. 23 5^-53/4 5% 23 5% 5% 20 10% 10% May 4, 5Va 5% Nov. 22 51/4-5% 5*4 Sept. 19 10%-11 11 11 534-6 6 26 5% 51/4 21 11 11 18, 6 June 11, 6-6 Vi 6% In effect Sept. 30, 1979... 11 11 15, 6 % 6% 1. Discounts of eligible paper and advances secured by such paper or by 4. Advances to individuals, partnerships, or corporations other than U.S. 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 sees. 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 REQUIREMENTS1 Percent of deposits Requirements in effect Previous requirements September 30, 1979 Type of deposit, and deposit interval in millions of dollars Percent Effective date Percent Effective date Net demand2 7 12/30/76 m 2/13/75 2-10 9% 12/30/76 10 2/13/75 100-400 1 n 2 y 3 4 4 1 1 2 2 / / 3 3 0 0 / / 7 7 6 6 1 1 3 2 2 2 / / 1 1 3 3 / / 7 7 5 5 Over 400 I6V4 12/30/76 16% 2/13/75 Time and savings2' 3.4 Savings 3 3/16/67 3% 3/2/67 Time 5 0-5, by maturity 30-179 days 3 3/16/67 3% 33//22//6677 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 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 Nov. 2, 1978, a supplementary reserve requirement of 2 city. Cities in which there are Federal Reserve Banks or branches are also 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 Aug. 24, 1978, the Regulation M reserve requirements Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • October 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 Sept. 30, 1979 Previous maximum In effect Sept. 30, 1979 Previous maximum Percent Effective Percent Effective Percent Effective Percent Effective date date date date 1 Savings 51/4 7/1/79 5 7/1/73 51/2 7/1/79 5% (7) 2 Negotiable order of withdrawal accounts1 5 1/1/74 (8) 5 1/1/74 (8) Time accounts2 Fixed ceiling rates by maturity 4 3 9 3 0 0 - d 8 a 9 y s d a to y s 1 year 5 5 1 1 / / 4 2 9 7 / / 1 1 / / 7 7 9 3 5 5 ( 7 9) / 1/73 35 ( 3 8 / ) 4 (7) 5 ( 1 8 / ) 4 1/21/70 6 7 5 2 2 1 1 / t t 2 o o t 2 2 o i / y 4 2 e a y y r e e s a a 3 r r s s 3 3 6 6 V 2 7 7/ / 1 1 / / 7 7 3 3 5 5 5 3 3 1 / / / 4 4 2 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 6 6 3 1/ / 2 4 ( ( 7 7 ) ) 6 6 53 /4 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 8 4 to 6 years4 71/4 11/1/73 (10) 7V2 11/1/73 (10) 1 9 0 6 8 y to e a 8 r s y e o a r r m s4 ore4 7 7 1 3 / / 2 4 12 6 /2 /1 3 / / 7 7 8 4 7(18)/ 4 11/1/73 IVA 12 6 /2 /1 3 / / 7 7 8 4 7 ( 1 8 / ) 2 11/1/73 11 Issued to governmental units (all 73/4 maturities) 6/1/78 73/4 12/23/74 6/1/78 12/23/74 12 Individual retirement accounts and Keogh (H.R. 10) plans (3 years or more) 5 6/1/78 73/4 7/6/77 6/1/78 7y4 7/6/77 Special variable ceiling rates by maturity 13 6 months (money market time 14 4 y d e e a p r o s s o it r s ) m 6 ore O (1 1 2 ) ) ( O 1 1 2 ) ) O (1 1 2 ) ) ( ( l 1 l) 2 ) ( ( n 1 ) 2) (12) ( O 1 1 2 ) ) ((M1)2 ) 1. For authorized states only. Federally insured commercial banks, in 4 years or more with minimum denominations of $1,000. There is no savings and loan associations, cooperative banks, and mutual savings limitation on the amount of these certificates that banks can issue. banks in Massachusetts and New Hampshire were first permitted to offer 11. Commercial banks, savings and loan associations, and mutual negotiable order of withdrawal (NOW) accounts on Jan. 1, 1974. savings banks were authorized to offer money market time deposits effec- Authorization to issue NOW accounts was extended to similar institutions tive June 1, 1978. The ceiling rate for commercial banks is the discount rate throughout New England on Feb. 27, 1976, and in New York State on on most recently issued 6-month U.S. Treasury bills. Until Mar. 15, Nov. 10, 1978. 1979, the ceiling rate for savings and loan associations and mutual savings 2. For exceptions with respect to certain foreign time deposits see the banks was V4 percentage point higher than the rate for commercial banks. FEDERAL RESERVE BULLETIN for October 1962 (p. 1279), August 1965 (p. Beginning Mar. 15, 1979, the *A percentage point interest differential 1094), and February 1968 (p. 167). is removed when the 6-month Treasury bill rate is 9 percent or more. 3. No minimum denomination. Until July 1, 1979, a minimum of The full differential is in effect when the 6-month bill rate is 8% percent $1,000 was required for savings and loan associations, except in areas or less. Thrift institutions may pay a maximum 9 percent when the 6-month where mutual savings banks permitted lower minimum denominations. bill rate is between 8% and 9 percent. Also effective March 15, 1979, This restriction was removed for deposits maturing in less than 1 year, interest compounding was prohibited on money market time depositeffective Nov. 1, 1973. at all offering institutions. For both commercial banks and thrift institu- 4. No minimum denomination. Until July 1, 1979, minimum denomina- tions, the maximum allowable rates in September were as follows: Sept. 6, tion was $1,000 except for deposits representing funds contributed to an 9.775; Sept. 13, 10.294; Sept. 20, 10.315; Sept. 27, 10.114. Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan es- 12. Effective July 1, 1979, commercial banks, savings and loan associatablished pursuant to the Internal Revenue Code. The $1,000 minimum tions, and mutual savings banks are authorized to offer variable ceiling requirement was removed for such accounts in December 1975 and No- accounts with no required minimum denomination and with maturities of vember 1976, respectively. 4 years or more. The maximum rate for commercial banks is 1 Vi percent- 5. Accounts maturing in less than 3 years subject to regular ceilings. age points below the yield on 4-year U.S. Treasury securities; the ceiling 6. Must have a maturity of exactly 26 weeks and a minimum denomina- rate for thrift institutions is V4 percentage point higher than that for comtion of $10,000, and must be nonnegotiable. mercial banks. In September, the ceiling was 8.25 percent at commercial 7. July 1, 1973, for mutual savings bank; July 6, 1973 for savings and banks and 8.50 percent at thrift institutions. loan associations. NOTE. Maximum rates that can be paid by federally insured commer- 8. No separate account category. cial banks, mutual savings banks, and savings and loan associations are 9. Multiple maturity: July 20, 1966; single maturity: September 26, established by the Board of Governors of the Federal Reserve System, 1966. the Board of Directors of the Federal Deposit Insurance Corporation, 10. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for and the Federal Home Loan Bank Board under the provisions of 12 certificates maturing in 4 years or more with minimum denominations CFR 217, 329, and 526, respectively. The maximum rates on time deof $1,000; however, the amount of such certificates that an institution posits in denominations of $100,000 or more with maturities of 30-89 could issue was limited to 5 percent of its total time and savings deposits. days were suspended in June 1970; such deposits maturing in 90 days or Sales in excess of that amount, as well as certificates of less than $1,000, more were suspended in May 1973. For information regarding previous were limited to the 6Vi percent ceiling on time deposits maturing in 2Vi interest rate ceilings on all types of accounts, see earlier issues of the years or more. FEDERAL RESERVE BULLETIN, the Federal Home Loan Bank Board Journal, Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing and the Annual Report 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 1979 11997766 11997777 11997788 TTyyppee ooff ttrraannssaaccttiioonn Feb. Mar. Apr. May June July Aug. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched salepurchase transactions) Treasury bills 14,343 13,738 16,628 0 2,012 22,361 0 518 2,252 2,351 2 Gross sales 8,462 7,241 13,725 228 475 100 251 623 0 380 3 Redemptions 2 5,017 2,136 2,033 400 400 21,240 200 0 0 0 Others within 1 year1 472 3,017 1,184 48 2,600 0 0 42 218 57 5 Gross sales 0 0 0 0 0 0 0 0 0 0 6 Exchange, or maturity shift 792 4,499 -5,170 -30 724 439 4,660 1,152 33 1,526 7 Redemptions 0 2,500 0 0 0 2 3,240 0 0 0 0 I to 5 years 8 Gross purchases 2 3,202 2,833 4,188 426 0 2 640 0 0 237 699 9 Gross sales 177 0 0 0 0 0 0 0 0 0 10 Exchange, or maturity shift -2,588 -6,649 -178 2,205 -724 -439 -5,209 -1,152 -33 -1,591 5 to 10 years 1,048 758 1,526 134 0 0 0 0 96 140 12 Gross sales 0 0 0 0 0 0 0 0 0 0 1,572 584 2,803 -2,975 0 0 350 0 0 -240 Over 10 years 642 553 1,063 93 0 0 0 0 142 81 15 Gross sales 0 0 0 0 0 0 0 0 0 0 16 Exchange, or maturity shift 225 1,565 2,545 800 0 0 200 0 0 305 All maturities1 17 Gross purchases 219,707 20,898 24,591 700 4,612 2 3,000 0 561 2,945 3,327 18 Gross sales 8,639 7,241 13,725 228 475 100 251 623 0 380 19 Redemptions 2 5,017 4,636 2,033 400 400 2 4,480 200 0 0 0 Matched sale-purchase transactions 20 Gross sales 196,078 425,214 511,126 56,291 61,669 62,362 54,343 52,640 40,310 35,159 196,579 423,841 510,854 58,426 63,707 61,968 53,692 52,949 40,300 35,480 Repurchase agreements 22 Gross purchases 223322,,889911 178,683 115511,,661188 66,,993311 1111,,881177 5,784 2,188 15,531 18,464 10,539 23 Gross sales 230,355 180,535 152,436 6,931 10,137 6,163 3,488 12,226 19,690 12,226 24 Net change in U.S. government securities 9,087 5,798 7,743 2,207 7,454 -2,352 -2,403 3,552 1,708 1,582 FEDERAL AGENCY OBLIGATIONS Outright transactions 891 1,433 301 0 0 0 0 371 482 0 26 Gross sales 0 0 173 20 0 0 0 0 0 0 169 223 235 * 23 * 40 33 0 * Repurchase agreements 10,520 13,811 40,567 1,152 2,851 1,173 1,149 4,443 7,247 4,057 10,360 13,638 40,885 1,152 2,482 1,392 1,298 3,617 7,434 4,544 30 Net change in federal agency obligations 882 1,383 -426 -20 345 -219 -189 1,163 295 -487 BANKERS ACCEPTANCES 31 Outright transactions, net -545 -196 0 0 0 0 0 0 0 0 410 159 -366 0 204 48 -252 1,400 -241 -684 33 Net change in bankers acceptances -135 -37 -366 0 204 48 -252 1,400 -241 -684 34 Total net change in System Open Market Account 9,833 7,143 6,951 22,,118877 8,003 -2,524 -2,844 6,115 1,761 412 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 Nonfinancial Statistics • October 1979 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1979 1979 Aug. 29 Sept. 5 Sept. 12 Sept. 19 p Sept. 26p July Aug. Sept.* Consolidated condition statement ASSETS Gold certificate account 11,259 11,259 11,229 11,228 11,228 11,290 11,259 11,228 Special drawing rights certificate account. 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 Coin 437 436 426 436 444 397 441 454 Loans 4 Member bank borrowings 919 1,060 2,532 964 1,820 852 1,572 1,157 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. 699 0 0 0 684 1,159 475 1,053 Federal agency obligations 8 Bought outright 8,242 8,242 8,224 8,224 8,224 8,243 8,242 8,224 9 Held under repurchase agreements. 757 0 0 o 308 638 153 1,099 U.S. government securities Bought outright 10 Bills 43,298 41,438 36,056 40,082 44,122 40,612 42,905 44,232 11 Certificates—Special... . 0 0 0 0 0 0 0 0 12 Other 0 0 0 0 0 0 0 0 13 Notes 55,645 55,645 55,645 55,645 55,645 55,055 55,645 56,179 14 Bonds 14,085 14,085 14,085 14,085 14,085 13,699 14,085 14,185 15 Total1 113,028 111,168 105,786 109,812 113,852 109,366 112,635 114,596 16 Held under repurchase agreements. 2,107 0 0 0 1,153 2,079 392 862 17 Total U.S. government securities. 115,135 111,168 105,786 109,812 115,005 111,445 113,027 115,458 18 Total loans and securities 125,752 120,470 116,542 119,000 126,041 122,337 123,469 126,991 19 Cash items in process of collection.. 11,704 14,459 13,578 13,646 12,262 11,712 9,938 9,381 20 Bank premises 400 400 400 400 400 399 400 400 Other assets 21 Denominated in foreign currencies2. 2,229 2,146 1,989 1,761 1,480 2,182 2,213 1,536 22 All other 1,951 2,481 2,347 2,445 2,312 2,660 2,008 3,413 23 Total assets. 155,532 153,451 148,311 150,716 155,967 152,777 151,528 155,203 LIABILITIES 24 Federal Reserve notes 106,827 107,874 107,980 107,273 107,059 105,957 106,900 106,683 Deposits 25 Member bank reserves 33,558 29,092 24,702 27,581 30,662 30,279 29,493 29,485 26 U.S. Treasury—General account. 3,176 2,853 3,126 2,786 5,483 2,765 3,542 6,489 27 Foreign 308 312 317 259 275 373 325 348 28 Other 541 680 568 686 571 636 663 780 29 Total deposits 37,583 32,937 28,713 31,312 36,991 34,053 34,023 37,102 30 Deferred availability cash items 6,129 8,262 7,125 7,534 7,062 7,816 5,729 6,332 1,979 1,969 1,916 1,826 1,897 1,884 1,813 2,078 31 Other liabilities and accrued dividends 3. 152,518 151,042 145,734 147,945 153,009 149,710 148,465 152,195 32 Total liabilities CAPITAL ACCOUNTS 33 Capital paid in 1,131 1,131 1,131 1,132 1,134 1,129 1,131 1,135 34 Surplus 1,078 1,078 1,078 1,078 1,078 1,078 1,078 1,078 35 Other capital accounts 805 200 368 561 746 860 854 795 36 Total liabilities and capital accounts 155,532 153,451 148,311 150,716 155,967 152,777 151,528 155,203 37 MEMO: Marketable U.S. government securities held in custody for foreign and international account 81,902 81,935 82,566 82,288 81,981 82,405 82,132 82,703 Federal Reserve note statement 38 Federal Reserve notes outstanding (issued to Bank) 121,377 121,616 121,738 112211,,995511 112222,,443344 112200,,003355 121,408 112222,,445577 Collateral held against notes outstanding 39 11,259 11,259 11,229 11,228 11,228 11,290 11,259 11,228 40 Special Drawing Rights certificate account 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 41 699 743 1,823 711 1,413 652 1,090 848 42 U.S. government and agency securities 107,649 107,814 106,886 108,212 107,993 106,293 107,259 108,581 43 Total collateral 121,377 121,616 121,738 121,951 122,434 120,035 121,408 122,457 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 TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy 1979 1979 Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 July 31 Aug. 31 Sept. 30 1 Loans 917 1,060 2,532 956 1,820 851 1,572 1,157 2 Within 15 days 873 944 2,424 853 1,758 786 1,441 1,079 3 16 days to 90 days 44 116 108 103 62 65 131 78 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances 699 0 0 0 684 1,159 475 1,053 6 Within 15 days 699 0 0 0 684 1,159 475 1,053 7 16 days to 90 days 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 0 9 U.S. Government securities 115,135 111,168 105,786 109,812 115,005 111,445 113,027 115,458 10 Within 15 days1 6,187 3,090 4,565 4,086 6,051 5,851 2,821 3,481 11 16 days to 90 days 22,632 21,866 16,317 19,651 23,011 19,553 23,419 25,171 12 91 days to 1 year 35,008 34,902 33,594 34,765 34,633 34,125 35,477 34,983 13 Over 1 year to 5 years 26,791 26,793 26,793 26,793 26,793 27,685 26,793 27,146 14 Over 5 years to 10 years 12,221 12,221 12,221 12,221 12,221 12,321 12,221 12,294 15 Over 10 years 12,296 12,296 12,296 12,296 12,296 11,910 12,296 12,383 16 Federal agency obligations 8,999 8,242 8,224 8,224 8,532 8,881 8,395 9,323 17 Within 15 days i 885 69 0 54 395 678 281 1,186 18 16 days to 90 days 185 254 310 256 223 377 185 223 19 91 days to 1 year 1,242 1,233 1,369 1,369 1,369 1,185 1,242 1,369 20 Over 1 year to 5 years 4,452 4,452 4,376 4,376 4,376 4,340 4,452 4,376 21 Over 5 years to 10 years 1,439 1,492 1,427 1,427 1,427 1,505 1,439 1,427 22 Over 10 years 796 742 742 742 742 796 796 742 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 BBaannkk ggrroouupp,, oorr ttyyppee 11997766 11997777 11997788 ooff ccuussttoommeerr Apr. May June July Aug. Debits to demand deposits2 (seasonally adjusted) 11111111 AAAAAAAAllllllllllllllll ccccccccoooooooommmmmmmmmmmmmmmmeeeeeeeerrrrrrrrcccccccciiiiiiiiaaaaaaaallllllll bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 29,180.4 34,322.8 40,300.3 46,612.2 47,545.4 50.388.3 52,102.7 52,402.5 22222222 MMMMMMMMaaaaaaaajjjjjjjjoooooooorrrrrrrr NNNNNNNNeeeeeeeewwwwwwww YYYYYYYYoooooooorrrrrrrrkkkkkkkk CCCCCCCCiiiiiiiittttttttyyyyyyyy bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss................ 11,467.2 13,860.6 15,008.7 16,898.7 16,960.3 19.747.4 20,480.5 20.357.2 33333333 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 17,713.2 20,462.2 25,291.6 29,713.5 30,585.2 30,641.0 31,622.2 32.045.3 Debits to savings deposits 3 (not seasonally adjusted) 44444444 AAAAAAAAllllllllllllllll ccccccccuuuuuuuussssssssttttttttoooooooommmmmmmmeeeeeeeerrrrrrrrssssssss 174.0 418.1 698.0 764.4 658.8 732.8 735.8 55555555 BBBBBBBBuuuuuuuussssssssiiiiiiiinnnnnnnneeeeeeeessssssssssssssss11111111 21.7 56.7 71.7 69.4 72.6 74.1 78.2 66666666 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrrssssssss 152.3 361.4 626.4 695.0 586.2 658.8 657.6 Demand deposit turnover2 (seasonally adjusted) 77777777 AAAAAAAAllllllllllllllll ccccccccoooooooommmmmmmmmmmmmmmmeeeeeeeerrrrrrrrcccccccciiiiiiiiaaaaaaaallllllll bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 116.8 129.2 139.4 156.8 160.3 167.3 171.9 173.1 88888888 MMMMMMMMaaaaaaaajjjjjjjjoooooooorrrrrrrr NNNNNNNNeeeeeeeewwwwwwww YYYYYYYYoooooooorrrrrrrrkkkkkkkk CCCCCCCCiiiiiiiittttttttyyyyyyyy bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss................ 411.6 503.0 541.9 618.4 619.1 685.4 717.7 709.1 99999999 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 79.8 85.9 96.7 110.1 113.6 112.5 115.2 116.9 Savings deposit turnover 3 (not seasonally adjusted) 1111111100000000 AAAAAAAAllllllllllllllll ccccccccuuuuuuuussssssssttttttttoooooooommmmmmmmeeeeeeeerrrrrrrrssssssss 1.6 1.9 3.2 3.6 3.1 3.4 3.4 4.1 5.1 7.0 6.8 7.2 7.2 7.4 1111111122222222 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrrssssssss 1.5 1.7 3.0 3.4 2.9 3.2 3.2 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 NonfinancialS tatistics • October 1979 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1979 11997755 11997766 11997777 11997788 DDeecc.. DDeecc.. DDeecc.. DDeecc.. IIIttteeemmm Mar. Apr. May June July Aug. Seasonally adjusted MEASURES1 1 M-l 295.4 313.8 338.7 361.2 359.0 364.3 364.5 369.0 372.1 374.3 2 M-l -f 456.8 517.2 560.6 587.2 579.6 585.1 r584.1 r590.1 '595.1 598.3 3 M-2 664.8 740.6 809.4 875.8 879.5 889.8 893.8 904.4 '914.1 922.5 4 M-3 1,092.4 1,235.6 1,374.3 1,500.1 1,517.5 1,530.8 1,537.0 1,552.3 '1, 567.0 1,579.9 5 M-4 745.8 803.0 883.1 972.4 978.5 984.8 984.4 989.3 998.7 1,008.4 6 M-5 1,173.5 1,298.0 1,448.0 1,596.7 1,616.5 1,625.9 1,627.6 1,637.2 '1,651.7 1,665.8 COMPONENTS 7 Currency 73.8 80.8 88.6 97.5 99.4 100.2 100.7 101.5 '102.4 103.6 Commercial bank deposits 8 Demand 221.7 233.0 250.1 263.7 225599..55 264.1 263.8 267.5 269.8 270.7 9 Time and savings 450.3 489.2 544.4 611.2 619.5 620.6 619.9 620.3 626.6 634.2 10 Savings 160.7 202.1 219.7 223.0 217.7 217.7 216.4 217.8 219.5 220.7 11 Negotiable CDs 2 81.0 62.4 73.7 96.6 99.0 95.0 90.6 84.9 84.7 85.9 12 Other time 208.6 224.7 251.0 291.5 302.9 307.9 313.0 317.6 322.4 327.6 13 Nonbank thrift institutions 3 427.7 495.0 564.9 624.4 638.0 641.0 643.2 647.9 652.9 657.4 Not seasonally adjusted MEASURES1 14 M-L 303.9 322.6 348.2 371.3 353.7 367.4 359.1 368.2 374.0 371.6 15 M-L -+- 463.6 524.2 568.0 595.2 575.6 590.7 '580.6 '591.0 '598.8 595.6 16 M-2 670.0 745.8 814.9 881.5 878.2 896.8 892.1 906.0 917.0 919.3 17 M-3 1,095.0 1,238.3 1,377.2 1,502.8 1,517.4 1,540.8 1,536.4 1,556.3 '1,573.0 1,576.7 18 M-4 753.5 810.0 890.8 981.0 975.7 989.5 981.1 990.4 1,001.0 1,005.7 19 M-5 1,178.4 1,302.6 1,453.2 1,602.4 1,614.9 1,633.5 1,625.4 1,640.7 '1,657.0 1,663.1 COMPONENTS 20 Currency 75.1 82.1 90.1 99.1 98.6 99.9 100.6 101.8 103.2 103.9 Commercial bank deposits 21 Demand 228.8 240.5 258.1 272.2 255.1 267.5 258.5 266.4 '270.9 267.7 22 Member 162.8 169.4 177.5 183.0 170.4 178.5 171.8 177. 1 180.5 178.5 23 Domestic nonmember 62.6 67.5 76.2 85.2 80.6 85.1 82.6 84.8 86.1 85.3 24 Time and savings 449.6 487.4 542.6 609.7 622.0 622.1 622.0 622.2 627.0 634.1 25 Savings 159.1 200.2 217.7 220.9 218.9 220.1 218.2 219.4 221.4 220.7 26 Negotiable CDs 2 83.5 64.3 75.9 99.5 97.5 92.6 88.9 84.4 84.0 86.4 27 Other time 207.1 222.9 249.0 289.2 305.5 309.3 314.9 318.3 321.6 327.1 28 Other checkable deposits* .7 1.4 2.1 3.0 3.0 3.2 '3.3 '3.3 '3.4 3.4 29 Nonbank thrift institutions 3 424.9 492.5 562.3 621.4 639.2 644.0 644.3 650.3 '656.0 657.4 30 U.S. government deposits (all 4.1 4.4 5.1 1100..22 6.5 5.3 8.4 10.8 13.2 9.8 1. Composition of the money stock measures is as follows: M-4: M-2 plus large negotiable CDs. M-l: Averages of daily figures for (1) demand deposits at commercial M-5: M-3 plus large negotiable CDs. banks other than domestic interbank and U.S. government, less cash items 2. Negotiable time CDs issued in denominations of $100,000 or more in process of collection and Federal Reserve float; (2) foreign demand by large weekly reporting commercial banks. balances at Federal Reserve Banks; and (3) currency outside the Treasury, 3. Average of the beginning- and end-of-month figures for deposits of Federal Reserve Banks, and vaults of commercial banks. mutual savings banks, for savings capital at savings and loan associations, M-l +: M-l plus savings deposits at commercial banks, NOW accounts and for credit union shares. at banks and thrift institutions, credit union share draft accounts, and 4. Includes NOW accounts at thrift institutions, credit union share demand deposits at mutual savings banks. draft accounts, and demand deposits at mutual savings banks. M-2: M-l plus savings deposits, time deposits open account, and time certificates of deposit (CDs) other than negotiable CDs of $100,000 or NOTE. Latest monthly and weekly figures are available from the Board's more at large weekly reporting banks. H.6 (508) release. Back data are available from the Banking Section, M-3: M-2 plus the average of the beginning- and end-of-month deposits Division of Research and Statistics. of mutual savings banks, savings and loan shares, and credit union shares (nonbank thrift). NOTES TO TABLE 1.23: 1. Includes domestic chartered banks, U.S. branches, agencies, and 7. As of Dec. 31, 1978, commercial and industrial loans were reduced New York investment company subsidiaries of foreign banks; and Edge $0.1 billion as a result of reclassifications. Act corporations. 8. As of Dec. 31, 1978, commercial and industrial loans sold outright 2. Excludes loans to commercial banks in the United States. were increased $0.7 billion as the result of reclassifications, but $0.1 3. Loans sold are those sold outright to a bank's own foreign branches, billion of this amount was offset by a balance sheet reduction of $0.1 nonconsolidated nonbank affiliates of the bank, the bank's holding billion as noted above. company (if not a bank), and nonconsolidated nonbank subsidiaries of 9. As of Dec. 31, 1978, nonbank financial loans were reduced $0.1 the holding company. billion as the result of reclassifications. 4. United States includes the 50 states and the District of Columbia. 10. As of Jan. 3, 1979, as the result of reclassifications, total loans and 5. As of Dec. 31, 1977, as the result of loan reclassifications, business investments and total loans were increased by $0.6 billion. Business loans loans were reduced by $0.2 billion and nonbank financial loans by $0.1 were increased by $0.4 billion and real estate loans by $0.5 billion. Nonbillion; real estate loans were increased by $0.3 billion. bank financial loans were reduced by $0.3 billion. 6. As of Dec. 31, 1978, total loans and investments were reduced by $0.1 billion. "Other securities" were increased by $1.5 billion and total NOTE. Data are prorated averages of Wednesday data for domestic loans were reduced by $1.6 billion largely as the result of reclassifications chartered banks, and averages of current and previous month-end data for of certain tax-exempt obligations. Most of the loan reduction was in foreign-related institutions. "all other loans." 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 1979 IItteemm 1976 1977 1978 Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June July Aug. Seasonally adjusted 34.89 36.10 41.27 41.48 40.75 40.81 40.65 40.48 40.42 40.82 41.07 2 Nonborrowed 34.84 35.53 40.40 40.48 39.78 39.82 39.73 38.72 39.00 39.65 39.98 3 Required 34.61 35.91 41.04 41.26 40.54 40.66 40.47 40.34 40.20 40.61 40.85 4 Monetary base2 118.4 127.8 142.3 143.4 143.3 143.9 144.5 144.9 145.6 146.9 148.4 5 Deposits subject to reserve requirements3 528.6 568.6 616.7 621.1 619.7 616.4 618.6 613.9 613.1 618.7 623.7 354.1 386.7 429.4 433.5 436.1 434.1 432.0 428.7 425.9 429.4 434.4 Demand 7 Private 171.5 178.5 185.1 185.6 181.9 180.5 184.7 183.5 184.8 187.5 187.1 8 U.S. government 3.0 3.5 2.3 1.9 1.8 1.8 1.8 1.7 2.4 1.8 2.2 Not seasonally adjusted 9 Monetary base2 120.3 129.8 144.6 144.4 141.9 142.3 144.2 144.4 145.6 147.9 148.4 10 Deposits subject to reserve requirements3 534.8 575.3 624.0 627.1 614.3 614.3 621.1 610.9 613.9 619.2 620.4 11 Time and savings 353.6 386.4 429.6 433.8 434.2 434.9 432.3 429.8 427.2 429.8 434.1 Demand 12 Private 177.9 185.1 191.9 191.5 178.2 177.5 186.8 179.2 183.9 187.8 184.5 13 U.S. government 3.3 3.8 2.5 1.9 1.8 1.9 2.0 1.8 2.8 1.6 1.7 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 Banks1 Billions of dollars; averages of Wednesday figures 1979 1979 Category 1977 1978 1977 1978 Dec. Dec. Dec. Dec. June? July^ Aug .P June? July? Seasonally adjusted Not seasonally adjusted 1 Total loans and securities2 891.1 61,014.3 101,079.8 1,091.8 1,102.4 899.1 61,023.8 ioi,083.3 1,093.3 2 U.S. Treasury securities 99.5 93.4 94.8 95.3 94.1 100.7 94.6 95.1 93.6 3 Other securities 159.6 6173.1 182.1 183.4 185.3 160.2 6173.9 182.7 183.3 4 Total loans and leases2 632.1 6747.8 10802.9 813.1 823.0 638.3 6755.4 10805.4 816.5 5 Commercial and industrial loans.. 5211.2 7246.5 10270.6 275.8 280.4 5212.6 7248.2 10272.1 277.2 6 Real estate loans 5175.2 210.5 10225.8 228.7 232.3 5175.5 210.9 10225.5 228.9 7 Loans to individuals 138.2 164.9 176.9 177.8 178.8 139.0 165.9 176.4 178.2 8 Security loans 20.6 19.4 23.1 23.7 23.0 22.0 20.7 23.2 20.1 9 Loans to nonbank financial institutions 525.8 927.1 1027.9 29.2 29.4 526.3 927.6 1028.1 29.5 10 Agricultural loans 25.8 28.2 29.1 29.1 29.2 25.7 28.1 29.2 29.5 11 Lease financing receivables 5.8 7.4 8.1 8.3 8.6 5.8 7.4 8.1 8.3 12 All other loans 29.5 643.6 41.4 40.5 42.3 31.5 646.6 42.8 44.7 MEMO: 13 Total loans and investments plus loans sold2, 3 895.9 61,018.1 ioi,083.5 1,095.5 1,106.1 903.9 61,027.6 ioi,087.0 1,097.0 14 Total loans plus loans sold2-3 636.9 6751.6 10806.7 816.8 826.7 643.0 6759.2 10809.2 820.2 15 Total loans sold to affiliates 3 4.8 3.8 3.8 3.7 3.7 4.8 3.8 3.8 3.7 16 Commercial and industrial loans plus loans sold 3 5213.9 8248.5 10273.4 278.6 283.1 5215.3 8250.1 10275.0 280.0 17 Commercial and industrial loans sold 3 \ 2.7 81.9 2.8 2.8 2.8 2.7 81.9 2.8 2.8 18 Acceptances held 7.5 6.8 7.5 8.1 8.0 8.6 7.5 7.5 7.9 19 Other commercial and industrial loans 5203.7 239.7 263.0 267.6 272.4 5203.9 240.9 264.6 269.3 20 To U.S. addressees 4 5193.8 226.6 246.3 250.5 254.3 5193.7 226.5 248.0 252.3 21 To non-U.S. addressees 59.9 13.1 16.7 17.7 18.1 510.3 14.4 16.6 17.0 22 Loans to foreign banks 13.5 21.2 20.8 20.7 20.6 14.6 23.0 21.6 21.6 23 Loans to commercial banks in the United States 54.1 57.3 67.0 68.9 70.9 56.9 60.3 66.1 65.6 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • October 1979 1.24 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1978 1979 Account Nov. Dec. Jan.? Feb.* Mar.* Apr.® May* June* July? Aug.* Sept.* DOMESTICALLY CHARTERED COMMERCIAL BANKS1 1 Loans and investments 1,005.5 1,030.4 1,018.9 1,025.2 1,031.4 1,048.3 1,059.4 1,071.3 1,081.8 1,094.3 1,112.1 2 Loans, gross 741.2 761.6 750.4 755.6 759.8 773.9 785.3 797.9 807.6 819.4 833.8 3 Interbank 41.5 45.3 41.3 42.1 42.3 44.4 45.9 46.3 48.1 50.3 53.6 4 Commercial and industrial 218.0 221.6 221.9 225.3 227.8 233.2 236.8 241.1 242.6 244.7 250.1 5 Other 481.6 494.7 487.2 488.2 489.6 496.3 502.6 510.6 516.8 524.4 530.2 6 U.S. Treasury securities 93.3 93.1 92.1 93.1 93.6 94.2 93.2 91.6 92.1 90.6 91.9 7 Other securities 171.0 175.7 176.4 176.5 178.0 180.2 181.0 181.7 182.1 184.3 186.4 8 Cash assets, total 140.9 177.3 139.8 147.1 135.8 139.9 158.8 146.3 140.2 145.7 148.5 9 Currency and coin 16.6 15.5 15.2 15.0 15.2 15.6 16.0 16.3 16.1 16.8 16.7 10 Reserves with Federal Reserve Banks 32.6 34.4 29.8 29.7 30.0 33.9 32.8 32.6 29.6 33.7 31.6 11 Balances with depositary institutions 38.3 52.3 40.2 42.5 36.8 39.0 44.6 40.8 41.2 41.1 40.7 12 Cash items in process of collection... 53.5 75.1 54.6 59.9 53.7 51.4 65.4 56.5 53.4 54.1 59.5 13 Other assets 62.5 60.9 64.0 62.4 58.9 55.8 52.7 55.1 53.9 53.8 57.5 14 Total assets/total liabilities and capital. 1,208.8 1,268.6 1,222.7 1,234.8 1,226.1 1,244.0 1,270.9 1,272.7 1,275.9 1,293.8 1,318.2 15 Deposits 948.5 1,011.3 961.3 969.2 954.9 964.4 975.5 971.3 975.2 982.9 996.6 16 Demand 345.7 399.2 347.5 352.1 335.0 348.0 357.8 352.4 352.6 352.4 358.7 17 Time and savings 602.8 612.1 613.8 617.1 619.8 616.4 617.8 618.9 622.6 630.5 637.9 18 Savings n.a. 219.7 215.2 215.2 216.8 215.9 215.5 216.4 218.3 216.6 213.4 19 Time n.a. 392.4 398.6 401.9 403.0 400.5 402.3 402.5 404.2 413.8 424.5 20 Borrowings 117.4 114.6 110.8 111.9 115.2 123.5 132.0 137.1 137.2 140.1 147.0 21 Other liabilities 54.7 49.1 56.6 59.0 60.9 60.8 65.4 65.5 64.9 69.7 71.2 22 Residual (assets less liabilities) 88.2 93.6 94.0 94.7 95.1 95.3 98.1 98.9 98.7 101.1 103.3 MEMO: 23 U.S. Treasury note balances included in borrowing 7.5 12.4 12.0 4.0 4.8 5.9 4.9 12.9 11.9 8.6 17.8 24 Number of banks 14,618 14,602 14,586 14,593 14,597 14,610 14,616 14,620 14,584 14,607 14,616 ALL COMMERCIAL BANKING INSTITUTIONS2 25 Loans and investments 1,067.2 1,097.0 1,080.6 1,087.7 1,101.4 1,114.8 1,131.0 1,146.7 1,152.8 1,169.5 26 Loans, gross 800.2 825.5 809.7 815.6 827.2 837.7 854.0 870.5 875.9 891.8 27 Interbank 55.2 57.6 52.1 53.5 56.1 57.3 61.8 60.4 60.7 63.8 28 Commercial and industrial 246.5 251.2 251.8 255.6 259.8 264.9 269.2 275.2 277.5 280.9 29 Other 498.5 516.8 505.9 506.5 511.3 515.4 523.0 534.9 537.7 547.0 30 U.S. Treasury securities 94.6 94.5 93.3 94.3 94.9 95.6 94.6 93.1 93.5 91.9 31 Other securities 172.3 177.0 177.6 177.8 179.4 181.5 182.3 183.1 183.5 185.7 32 Cash assets, total 157.1 196.8 158.2 166.8 157.0 156.4 176.4 168.0 160.8 166.4 33 Currency and coin 16.6 15.5 15.2 15.1 15.2 15.6 16.1 16.3 16.1 16.8 34 Reserves with Federal Reserve Banks 33.0 35.0 30.2 30.3 30.7 34.5 33.4 33.4 30.4 34.5 35 Balances with depositary institutions 52.5 69.9 56.8 60.3 56.0 53.7 60.1 60.5 59.7 59.9 36 Cash items in process of collection... 55.0 76.4 56.0 61.3 55.1 52.5 66.8 57.7 54.6 55.2 37 Other assets 76.3 75.9 78.3 76.8 74.0 70.5 67.3 71.3 69.4 70.5 a. 38 Total assets/total liabilities and capital. 1,300.6 1,369.7 1,317.1 1,331.4 1,332.4 1,341.6 1,374.6 1,386.0 1,383.0 1,406.5 39 Deposits 979.9 1,049.0 994.3 1,002.5 994.0 997.0 1,012.5 1,015.6 1,012.1 1,020.6 40 Demand 359.5 418.9 363.2 368.1 355.7 361.7 375.1 376.4 369.6 368.8 41 Time and savings 620.4 630.0 631.2 634.4 638.3 635.3 637.4 639.2 642.5 651.8 42 Savings n.a. 220.3 215.9 215.9 218.0 216.9 216.7 217.2 219.1 217.6 43 Time n.a. 409.7 415.2 418.4 420.3 418.5 420.6 422.0 423.5 434.2 44 Borrowings 142.6 144.0 138.0 138.0 141.7 150.4 159.4 165.4 165.8 169.6 45 Other liabilities 88.0 81.2 88.8 94.4 99.7 97.0 102.8 104.0 104.3 113.1 46 Residual (assets less liabilities) 90.0 95.5 96.0 96.6 97.1 97.1 100.0 100.9 100.8 103.2 MEMO: 47 U.S. Treasury note balances included in borrowing 7.5 12.4 12.0 4.0 4.8 5.9 4.9 12.9 11.9 8.6 48 Number of banks 14,932 14,923 14,913 14,926 14,930 14,946 14,954 14,968 14,933 14,960 1. Domestically chartered commercial banks include all commercial and Agreement corporations, and New York state foreign investment banks in the United States except branches of foreign banks ; included are corporations. member and nonmember banks, stock savings banks, and nondeposit trust companies. NOTE. Figures are partly estimated except on call dates. They include 2. Commercial banking institutions include domestically chartered all bank-premises subsidiaries and other significant majority-owned commercial banks, branches and agencies of foreign banks, Edge Act domestic subsidiaries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A17 1.25 COMMERCIAL BANK ASSETS AND LIABILITIES Call-Date Series Millions of dollars, except for number of banks 1976 1977 1978 1976 1977 1978 Account Dec. 31 June 30 Dec. 31 June 30 Dec. 31 June 30 Dec. 31 June 30 Total insured National (all insured) 1 Loans and investments, gross 882277,,669966 885544,,773333 991144,,777799 995566,,443311 476,610 448888,,224400 552233,,000000 554422,,221188 Loans 2 Gross 578,734 601,122 657,509 695,443 340,691 351,311 384,722 403,812 3 Net 560,077 581,143 663366,,331188 667722,,220077 329,971 339,955 337722,,770022 339900,,663300 Investments 4 U.S. Treasury securities 101,461 100,568 99,333 97,001 55,727 53,345 52,244 50,519 5 Other 147,500 153,042 157,936 163,986 80,191 83,583 86,033 87,886 6 Cash assets 129,562 130,726 159,264 157,393 76,072 74,641 92,050 90,728 7 Total assets/total liabilities1 1,003,970 1,040,945 1,129,712 1,172,772 583,304 599,743 651,360 671,166 8 Deposits 882255,,000033 884477,,337722 992222,,665577 994455,,887744 446699,,337777 447766,,338811 552200,,116677 552266,,993322 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 331122,,770077 163,346 161,358 118811,,882211 117766,,002255 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 Borrowings 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 MEMO: Number of banks 14,397 14,425 14,397 14,381 4,735 4,701 4,654 4,616 State member (all insured) Insured nonmember 17 Loans and investments, gross 114444,,000000 114444,,559977 115522,,551144 115577,,446644 220077,,008855 222211,,889966 223399,,226655 225566,,774499 Loans 18 Gross 102,277 102,117 110,243 115,736 135,766 147,694 162,543 175,894 19 99,474 9999,,117733 110077,,220055 111122,,447700 130,630 114422,,001155 115566,,441111 116699,,110066 Investments 20 U.S. Treasury securities 18,849 19,296 18,179 16,886 26,884 27,926 28,909 29,595 21 Other 22,874 23,183 24,091 24,841 44,434 46,275 47,812 51,259 22 Cash assets 32,859 35,918 42,305 43,057 20,631 20,166 24,908 23,606 23 Total assets/total liabilities1 189,579 195,452 210,442 217,384 231,086 245,748 267,910 284,221 24 Deposits 149,491 115522,,447722 116633,,443366 116677,,440033 220066,,113344 221188,,551199 223399,,005533 225511,,553399 Demand 25 U.S. government 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 5555,,555500 69,648 70,615 80,445 8811,,113311 Time and savings 28 Interbank 2,384 2,134 2,026 2,275 956 988 973 920 29 Other 75,178 76,827 80,216 85,301 132,993 144,581 153,887 165,502 30 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 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 2222,,994400 2244,,441155 2288,,669999 222255,,990044 224444,,883377 226633,,668811 228855,,444488 Loans 34 16,336 20,865 22,686 26,747 152,103 168,559 185,230 202,641 35 16,209 20,679 2222,,448844 2266,,554488 114466,,884400 116622,,669944 117788,,889966 119955,,665555 Investments 36 U.S. Treasury securities 1,054 993 879 869 27,938 28,919 29,788 30,465 37 Other 1,428 1,081 849 1,082 45,863 47,357 48,662 52,341 38 6,496 8,330 9,458 9,360 27,127 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 1166,,884444 1199,,992244 221199,,446600 223333,,117777 225555,,889988 227711,,446633 Demand 41 4 8 10 8 921 822 1,907 2,323 42 1,277 1,504 1,868 2,067 2,896 3,025 3,718 3,736 43 Other 3,236 3,588 4,073 4,814 72,884 74,203 84,518 8855,,994466 Time and savings 44 Interbank 1,041 1,164 1,089 1,203 1,997 2,152 2,063 2,123 45 7,766 8,392 9,802 11,831 140,760 152,974 163,690 177,334 46 4,842 7,056 6,908 8,413 8,401 11,212 11,293 14,649 47 Total capital accounts 818 893 917 962 18,360 19,812 20,823 22,346 48 MEMO: Number of banks 275 293 310 317 8,914 8,998 9,039 9,077 1. Includes items not shown separately. For Note see table 1.24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • October 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 Asset account commercial Large banks banks 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 2 Currency and coin 12,135 8,866 867 180 2,918 4,901 3 Reserves with Federal Reserve Banks 28,043 28,041 3,621 1,152 12,200 11,067 4 Demand balances with banks in United States. 41,104 25,982 12,821 543 3,672 8,945 5 Other balances with banks in United States... 4,648 2,582 601 15 648 1,319 6 Balances with banks in foreign countries 3,295 2,832 331 288 1,507 705 7 Cash items in process of collection 69,156 66,652 25,516 3,119 26,969 11,049 8 Total securities held—Book value 262,199 179,877 20,808 7,918 58,271 92,881 9 U.S. Treasury 95,068 65,764 9,524 2,690 22,051 31,499 10 Other U.S. government agencies 40,078 25,457 1,828 1,284 7,730 14,616 11 States and political subdivisions 121,260 85,125 9,166 3,705 27,423 44,831 12 All other securities 5,698 3,465 291 240 1,048 1,887 13 Unclassified total 94 66 19 47 14 Trading-account securities 6,833 6,681 3,238 708 2,446 290 15 U.S. Treasury 4,125 4,103 2,407 408 1,210 78 16 Other U.S. government agencies.... 825 816 401 82 278 55 17 States and political subdivisions 1,395 1,381 363 117 794 107 18 All other trading account securities. 394 316 67 101 145 3 19 Unclassified 94 66 19 47 20 Bank investment portfolios 255,366 173,196 17,570 7,210 55,825 92,591 21 U.S. Treasury 90,943 61,661 7,117 2,282 20,840 31,422 22 Other U.S. government agencies., 39,253 24,641 1,426 1,201 7,452 14,561 23 States and political subdivisions.., 119,865 83,745 8,803 3,588 26,629 44,724 24 All other portfolio securities 5,305 3,149 224 138 903 1,884 25 Federal Reserve stock and corporate stock 1,656 1,403 311 111 507 475 26 Federal funds sold and securities resale agreement., 41,258 31,999 3,290 1,784 16,498 10,427 27 Commercial banks 34,256 25,272 1,987 1,294 12,274 9,717 28 Brokers and dealers 4,259 4,119 821 396 2,361 541 29 Others 2,743 2,608 482 94 1,863 169 30 Other loans, gross 675,915 500,802 79,996 26,172 190,565 204,069 31 Less: Unearned income on loans. 17,019 11,355 675 107 3,765 6,809 32 Reserves for loan loss 7,431 5,894 1,347 341 2,256 1,949 33 Otherloans.net 651,465 483,553 77,974 25,724 184,544 195,311 Other loans, gross, by category 34 Real estate loans 203,386 138,730 10,241 2,938 52,687 72,863 35 Construction and land development.. 25,621 19,100 2,598 685 9,236 6,581 Secured by farmland 8,418 3,655 23 34 453 3,146 Secured by residential properties 117,176 81,370 5,362 1,559 31,212 43,236 1- to 4-family residences 111,674 77,422 4,617 1,460 29,774 41,570 FHA-insured or VA-guaranteed. 7,503 6,500 508 44 3,446 2,502 Conventional 104,171 70,922 4,109 1,417 26,328 39,068 Multifamily residences 5,502 3,948 746 99 1,438 1,665 FHA-insured 399 340 132 27 88 92 Conventional 5,103 3,609 613 72 1,350 1,573 Secured by other properties 52,171 34,605 2,258 660 11,786 19,901 45 Loans to financial institutions 37,072 34,843 12,434 4,342 15,137 2,930 46 REITs and mortgage companies 8,574 8,162 2,066 801 4,616 680 47 Domestic commercial banks 3,362 2,618 966 165 1,206 281 48 Banks in foreign countries 7,359 7,187 3.464 268 2,820 635 49 Other depositary institutions 1,579 1,411 290 76 785 261 50 Other financial institutions 16,198 15,465 5,649 3,033 5,710 1,073 51 Loans to security brokers and dealers 11,042 10,834 6.465 1,324 2,846 199 52 Other loans to purchase or carry securities. 4,280 3,532 410 276 1,860 985 53 Loans to farmers except real estate 28,054 15,296 168 150 3,781 11,196 54 Commercial and industrial loans 213,123 171,815 39,633 13,290 67,833 51,059 55 Loans to individuals 161,599 110,974 7,100 2,562 40,320 60,993 56 Installment loans 131,571 90,568 5,405 1,711 33,640 49,811 57 Passenger automobiles 58,908 37,494 1,077 209 11,626 24,582 58 Residential repair and modernization. 8,526 5,543 331 60 2,088 3,064 59 Credit cards and related plans 21,938 19,333 2,268 1,267 9,736 6,062 60 Charge-account credit cards 17,900 16,037 1,573 1,219 8,192 5,053 61 Check and revolving credit plans... 4,038 3,296 695 47 1,545 1,009 62 Other retail consumer goods 19,689 13,296 427 57 5,242 7,570 63 Mobile homes 9,642 6,667 179 19 2,563 3,905 64 Other 10,047 6,629 249 38 2,678 3,664 65 Other installment loans 22,510 14,902 1,302 119 4,948 8,533 66 Single-payment loans to individuals.... 30,027 20,406 1,694 851 6,680 11,182 67 All other loans. 17,360 14,778 3,545 1,290 6,100 3,844 68 Total loans and securities, net. 956,579 696,833 102,383 35,536 259,820 299,094 69 Direct lease financing 6,717 6,212 1,145 96 3,931 1,041 70 Fixed assets—Buildings, furniture, real estate. 22,448 16,529 2,332 795 6,268 7,133 71 Investment in unconsolidated subsidiaries.... 3,255 3,209 1,642 188 1,282 96 72 Customer acceptances outstanding 16,557 16,036 8,315 1,258 6,054 409 73 Other assets 34,559 30,408 11,323 1,000 12,810 5,275 74 Total assets. 1,198,495 904,182 170,899 44,170 338,079 351,034 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A19 1.26 Continued Member banks1 Insured Non- LLiiaabbiilliittyy oorr ccaappiittaall aaccccoouunntt commercial Large banks member banks banks1 Total All other New York City of Other City Chicago large 75 Demand deposits 369,030 282,450 66,035 1100,,669900 100,737 104,988 86,591 76 Mutual savings banks 1,282 1,089 527 11 256 305 194 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 9988,,552255 113,931 102,066 85 Accumulated for personal loan payments 79 66 0 0 11 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 81,680 864 689 61 40 356 232 175 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 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 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 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 0 0 5 31 52 17,875 12,816 2,645 570 4,007 5,594 5,064 113 Surplus 32,341 23,127 4,541 1,404 8,148 9,034 9,217 114 Undivided profits 33,517 26,013 5,554 921 8,680 10,858 7,509 115 Other capital reserves 1,719 1,182 132 52 337 661 538 1,198,495 904,182 170,899 44,170 338,079 351,034 294,595 MEMO: 117 Demand deposits adjusted2 252,337 171,864 18,537 5,576 60,978 86,774 80,472 A verage 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- 43,873 33,682 4,272 1,887 16,007 11,517 10,307 120 Total loans 651,874 483,316 76,750 25,722 184,790 196,054 168,558 121 Time deposits of $100,000 or more 183,614 150,160 32,196 13,216 65,776 38,972 33,454 122 Total deposits 944,593 687,543 107,028 28,922 250,804 300,789 257,062 123 Federal funds purchased and securities sold under agree- 92,685 86,635 22,896 9,473 40,541 13,725 6,053 8,716 8,326 3,679 370 3,211 1,067 390 18,820 17,658 10,063 1,477 4,820 1,297 1,162 126 Time deposits of $100,000 or more 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 deduccommercial interbank and U.S. government, less cash items reported tions of valuation reserves. Back data in lesser detail were shown in as in process of collection. previous issues of the BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • October 1979 1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of £750 Million or More on December 31, 1977, Assets and Liabilities Millions of dollars, Wednesday figures 1979 Account Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 Sept. 5P Sept. 12* Sept. 19* 1 Cash items in process of collection 50,230 41,630 47,118 43,733 44,092 55,652 52,000 52,399 2 Demand deposits due from banks in the United States 15,178 13,492 14,111 13,487 14,633 16,658 15,413 16,988 3 All other cash and due from depositary institutions 28,968 26,241 28.868 30,248 34,722 31,650 26,589 29,154 4 Total loans and securities 486,737 489,030 490,377 489,230 489,835 503,699 501,250 506,460 Securities U.S. Treasury securities 35,178 34,651 35,064 35,037 34,676 36,756 37,014 35,976 Trading account 4,770 4.291 4,449 4,570 4,681 5,335 5,557 4,928 Investment account, by maturity 30,408 30,360 30,615 30,467 29,995 31,421 31,457 31,048 One year or less 8,380 8,505 8,337 8,282 8,092 8,669 8,671 8,213 Over one through five years 17,861 17,685 17,878 17,814 17,517 18,414 18,530 18,571 Over five years 4,166 4,170 4,400 4,372 4,386 4,338 4,257 4,264 Other securities 68,384 68,962 69,079 69,200 69,787 70,790 70,542 70,745 Trading account 4,020 4,287 4,155 4,109 4,211 5,162 4,867 4,572 Investment account 64,363 64,675 64,924 65,091 65,575 65,629 65,675 66,173 U.S. government agencies 14,024 14,006 14,234 14,274 14,598 14,550 14,567 14,960 States and political subdivision, by maturity. 47,589 47,940 47,962 48,122 48,272 48,366 48,391 48,521 One year or less 6,150 6,279 6,294 6,366 6,361 6,373 6,359 6,314 Over one year 41,439 41,662 41,668 41,756 41,910 41,993 42,032 42,207 Other bonds, corporate stocks and securities 2,750 2,728 2,729 2,695 2,705 2,713 2,716 2,691 Loans 19 Federal funds sold1 25,764 28,291 27,522 25,922 25,708 31,249 29,337 31,304 20 To commercial banks 18,135 18,136 19,694 18,070 17,730 20,692 18,014 21,023 21 To nonbank brokers and dealers in securities. 5,942 7,171 5,897 5,851 5,906 8,018 8,540 7,574 22 To others 1,688 2,984 1,931 2,000 2,072 2,539 2,782 2,707 23 Other loans, gross 368,756 368,590 370,218 370,650 371,283 376,524 365,054 380,204 24 Commercial and industrial 147,453 147,431 147,240 147,676 147,618 149,882 150,293 151,994 25 Bankers' acceptances and commercial paper 4,236 3,876 3,497 3,654 3,625 4,014 3,924 3,844 26 All other 143,218 143,555 143,744 144,022 143,993 145,868 146,369 148,151 27 U.S. addresses 136,913 137,243 137,396 137,672 137,511 139,235 139,772 141,542 28 Non-U.S. addressees 6,304 6,312 6,347 6,350 6,481 6,632 6,597 6,609 29 Real estate 90,467 90,796 91,260 91,581 92,045 92,443 92,942 93,504 30 To individuals for personal expenditures 66,052 66,455 66,738 67,082 67,526 67,785 67,964 68,223 To financial institutions 31 Commercial banks in the United States 3,351 2,853 3,048 3,164 3,182 3,272 3,268 3,050 32 Banks in foreign countries 6,658 6,453 6,411 6,412 6,777 6,927 7,068 7,150 33 Sales finance, personal finance companies, etc 10,076 10,130 9,862 9,770 9,734 10,288 10,100 9,999 34 Other financial institutions 15,488 15,668 15,747 15,711 15,933 16,316 16,554 16,540 35 To nonbank brokers and dealers in securities. 9,504 9,324 10,128 9,873 9,070 9,734 8,449 9,807 36 To others for purchasing and carrying securities2 2,512 2,540 2,560 2,570 2,581 2,556 2,550 2,552 37 To finance agricultural production 4,950 4,989 4,947 4,931 4,924 4,940 4,953 4,998 38 All other 12,245 11,949 12,277 11,879 11,892 12,381 11,912 12,384 39 LESS: Unearned income 6,453 6,515 6,566 6,629 6,652 6,614 6,673 6,733 40 Loan loss reserve 4,891 4,949 4,941 4,950 4,967 5,007 5,024 5,036 41 Other loans, net 357,412 357,125 358,712 359,071 359,664 364,903 364,357 368,435 42 Lease financing receivables 6,940 7,023 7,042 7,050 7,081 7,109 7,185 7,215 43 All other assets 57,083 56,662 58,292 56,143 56,268 57,073 58,563 58,371 44 Total assets 645,136 634,078 645,808 639,891 646,632 671,841 661,000 670,587 Deposits 45 Demand deposits 187,144 174,430 184,184 174,395 177,448 198,104 189,187 191,696 46 Mutual savings banks 783 680 770 602 662 824 722 608 Individuals, partnerships, and corporations.. 130,254 124,471 131,350 124,909 124,252 138,917 134,580 130,093 States and political subdivisions 5,438 4,246 4,904 4,485 4,331 4,831 4,362 4,342 U.S. government 750 559 1,237 565 580 1,013 1,638 3,010 Commercial banks in the United States 32,021 28,215 29,023 28,129 30,740 35,583 31,155 35,465 Banks in foreign countries 7,502 7,456 7,336 6,932 7,192 7,308 7,562 7,356 Foreign governments and official institutions. 1,407 1,273 1,606 1,376 1,664 1,470 1,272 1,562 Certified and officers' checks 8,989 7,529 7,957 7,397 8,026 8.157 7,897 9,258 54 Time and savings deposits 249,006 249,833 250,118 251,541 252,134 252,344 254,414 255,559 55 Savings 77,638 77,770 77,615 77,450 77,129 77.451 77,248 76,701 Individuals and nonprofit organizations 72,613 72,694 72,533 72,387 72,002 72,349 72,132 71,721 Partnerships and corporations operated for profit. . 4,227 4,279 4,257 4,291 4,339 4,325 4,301 4,178 Domestic governmental units 774 775 801 747 757 756 792 780 All other 24 22 23 25 30 22 23 22 Time 171,367 172,063 172,503 174,090 175,005 174,893 177,167 178,858 Individuals, partnerships, and corporations 139,707 140,388 140,853 142,372 143,119 143,293 145,055 146,607 States and political subdivisions 21,172 21,279 21,187 21,422 21,662 21,522 21,677 21,666 U.S. government 441 481 481 476 507 496 501 498 Commercial banks in the United States... 4,570 4,608 4,592 4,514 4,419 4,348 4,674 4,879 Foreign governments, official institutions, and banks 5,477 5,307 5,390 5,306 5,298 5,235 5,260 5,207 66 Federal funds purchased3 90,146 94,892 93,479 92,304 95,275 101,817 95,763 94,791 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks 810 380 2,100 877 256 642 2,013 434 68 Treasury tax-and-loan notes 5,971 3,092 2,232 5,262 4,922 1.158 2,418 9,075 69 All other liabilities for borrowed money.. 15,290 15,190 15,888 16,912 15,910 16.452 15,980 16,295 70 Other liabilities and subordinated note and debentures 52,974 52,367 53,937 54,760 56,703 57,123 56,885 58,504 71 Total liabilities 601,341 590,186 601,938 596,051 602,648 627,641 616,662 626,354 72 Residual (total assets minus total liabilities)4.. 43,795 43,892 43,869 43,840 43,984 44,200 44,338 44,232 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. Digitized for FRASE3R. I ncludes securities sold under agreements to repurchase. 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 $\ Billion or More on December 31, 1977 Assets and Liabilities Millions of dollars, Wednesday figures 1979 Account Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 Sept. 5*> Sept. 12*> Sept. 19* Sept. 26? 1 Cash items in process of collection 47,918 39.707 44,766 41,637 42,144 52,628 49,593 49,884 2 Demand deposits due from banks in the United States 14,426 12,800 13,351 12,799 13,875 15,600 14,787 16,218 3 All other cash and due from depositary institutions 27,403 24.708 27,309 28,552 32,901 30,216 25,106 27,331 4 Total loans and securities 455,518 457,699 459,109 457,779 458,454 471,950 469,123 474,625 Securities 5 U.S. Treasury securities 32,817 32,295 32,694 32,690 32,321 34,390 34,650 33,609 6 Trading account 4,725 4,256 4,400 4,528 4,634 5,286 5,508 4,887 7 Investment account, by maturity 28,092 28,039 28,294 28,162 27,687 29,104 29,142 28,722 8 One year or less 7,828 7,950 7,803 7,758 7,565 8,149 8,137 7,671 9 Over one through five years 16,402 16,222 16,396 16,336 16,039 16,897 17,028 17,070 10 Over five years 3,861 3,866 4,095 4,068 4,083 4,058 3,976 3,981 11 Other securities 63,120 63,679 63,817 63,942 64,495 65,543 65,296 65,486 12 Trading account 3,938 4,205 4,080 4,030 4,104 5,071 4,772 4,492 Investment account 59,182 59,474 59,737 59,912 60,391 60,472 60,524 60,993 U.S. government agencies 13,005 12,988 13,203 13,246 13,570 13,535 13,555 13,946 States and political subdivision, by maturity. 43,603 43,935 43,982 44,148 44,293 44,396 44,417 44,522 One year or less 5,574 5,699 5,730 5,791 5,782 5,793 5,774 5,739 Over one year 38,029 38,236 38,252 38,356 38,511 38,603 38,643 38,783 Other bonds, corporate stocks and securities 2,574 2,551 2,552 2,518 2,528 2,541 2,551 2,525 Loans 19 Federal funds sold i 23,760 26,179 25,587 23,851 23,809 29,072 26,778 29,125 20 To commercial banks 16,471 16,437 18,162 16,362 16,264 18,872 16,041 19,226 21 To nonbank brokers and dealers in securities. 5,638 6,819 5,562 5,553 5,544 7,724 8,082 7,250 22 To others 1,652 2,923 1,863 1,936 2,002 2,477 2,655 2,649 23 Other loans, gross 346,350 346,162 347,694 348,048 348,620 353,741 353,266 357,337 24 Commercial and industrial 140,038 139,986 139,784 140,198 140,138 142,349 142,770 144,483 25 Bankers' acceptances and commercial paper 4,170 3,806 3,421 3,567 3,535 3,917 3,834 3,741 26 Allother 135,868 136,180 136,363 136,631 136,603 138,432 138,936 140,742 27 U.S. addresses 129,614 129,918 130,069 130,330 130,170 131,854 132,392 134,179 28 Non-U.S. addressees 6,254 6,262 6,293 6,302 6,433 6,578 6,543 6,563 29 Real estate 84,966 85,296 85,731 86,053 86,504 86,889 87,372 87,895 30 To individuals for personal expenditures 58,458 58,824 59,055 59,356 59,766 60,001 60,167 60,378 To financial institutions 31 Commercial banks in the United States.... 3,281 2,782 2,981 3,083 3,107 3,184 3,184 2,979 32 Banks in foreign countries 6,601 6,408 6,366 6,366 6,724 6,880 7,008 7,089 33 Sales finance, personal finance companies, etc 9,897 9,938 9,669 9,579 9,543 10,097 9,915 9,808 34 Other financial institutions 15,026 15,216 15,304 15,264 15,479 15,851 16,077 16,066 35 To nonbank brokers and dealers in securities. 9,377 9,197 9,998 9,736 8,941 9,591 8,325 9,707 36 To others for purchasing and carrying securities2 2,294 2,320 2,338 2,347 2,356 2,356 2,350 2,345 37 To finance agricultural production 4,778 4,817 4,772 4,755 4,748 4,762 4,776 4,822 38 All other 11,634 11,377 11,696 11,312 11,315 11,780 11,322 11,765 39 LESS: Unearned income 5,910 5,967 6,014 6,074 6,097 6,061 6,115 6,170 40 Loan loss reserve 4,620 4,679 4,669 4,679 4,694 4,735 4,751 4,762 41 Other loans, net 335,820 335,516 337,011 337,295 337,828 342,945 342,400 346,404 42 Lease financing receivables 6,751 6,835 6,854 6,862 6,893 6,919 6,995 7,023 43 All other assets 55,533 55,165 56,820 54,653 54,682 55,506 57,046 56,877 44 Total assets 607,550 596,884 608,209 602,283 608,948 632,819 622,649 631,959 Deposits 45 Demand deposits 175,922 163,830 173,091 163,842 166,790 186,259 177,935 180,454 46 Mutual savings banks 742 650 742 574 627 781 690 585 Individuals, partnerships, and corporations.. 121,634 116,131 122,644 116,503 115,882 129,760 125,691 121,357 States and political subdivisions 4,831 3,710 4,360 3,926 3,765 4,332 3,829 3,779 U.S. government 673 503 1,138 507 528 902 1,475 2,728 Commercial banks in the United States 30,618 26,946 27,677 26,918 29,460 33,928 29,864 34,171 Banks in foreign countries 7,421 7,389 7,269 6,878 7,117 7,244 7,497 7,296 Foreign governments and official institutions. 1,401 1,248 1,574 1,375 1,662 1,469 1,267 1,562 Certified and officers' checks 8,601 7,252 7,688 7,162 7,750 7,843 7,621 8,976 54 Time and savings deposits 232,028 232,774 232,972 234,323 234,787 234,920 236,973 238,182 55 Savings 72,063 72,176 72,030 71,892 71,599 71,894 71,693 71,224 56 Individuals and nonprofit organizations 67,431 67,514 67,370 67,227 66,873 67,191 66,991 66,626 57 Partnerships and corporations operated for profit 3,906 3,958 3,936 3,965 4,010 4,002 3,983 3,867 58 Domestic governmental units 704 684 701 676 686 681 698 710 59 All other 23 21 22 24 29 20 21 20 60 Time 159,964 160,598 160,942 162,431 163,188 163,025 165,281 166,958 61 Individuals, partnerships, and corporations 130,452 131,102 131,507 132,943 133,557 133,643 135,404 136,951 62 States and political subdivisions 19,257 19,330 19,204 19,420 19,634 19,527 19,670 19,656 63 U.S. government 435 474 474 469 500 489 494 492 64 Commercial banks in the United States 4,355 4,395 4,377 4,303 4,207 4,140 4,462 4,660 65 Foreign governments, official institutions, and banks 5,466 5,296 5,379 5,296 5,289 5,226 5,251 5,198 66 Federal funds purchased 3 85,648 89,956 88,682 87,245 90,319 96,556 90,724 89,708 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks 778 358 2,023 790 208 631 1,908 429 68 Treasury tax-and-loan notes 5,517 2,873 2,068 4,898 4,606 1,058 2,237 8,447 69 All other liabilities for borrowed money 14,809 14,776 15,481 16,539 15,485 16,051 15,615 15,923 70 Other liabilities and subordinated note and debentures 51,808 51,180 52,772 53,568 55,546 55,911 55,708 57,364 71 Total liabilities 566,510 555,747 567,090 561,205 567,741 591,386 581,101 590,506 72 Residual (total assets minus total liabilities).. 41,040 41,136 41,120 41,078 41,207 41,433 41,548 41,453 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. Digitized for FR3. AInSclEuRde s securities sold under agreements to repurchases. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • October 1979 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1979 Account Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 Sept. 5P Sept. 12 p Sept. 19 p 1 Cash items in process of collection 18,006 14,769 15,759 14,821 16,424 16,952 17,346 19,311 2 Demand deposits due from banks in the United States 10,152 8,978 9,167 8,837 9,685 10,129 10,503 11,588 3 All other cash and due from depositary institutions 5,845 6,257 6,262 7,081 8,917 7,471 5,522 4,868 4 Total loans and securities1 105,387 104,959 105,683 104,973 105,198 109,217 107,588 112,263 Securities 5 U.S. Treasury securities2 6 Trading account2 7 Investment account, by maturity 6,265 6,170 6,149 6,087 5,818 6,522 6,644 6,590 8 One year or less 1,154 1,237 1,221 1,209 1,128 1,320 1,450 1,384 9 Over one through five years 4,498 4,340 4,334 4,285 4,115 4,644 4,636 4,647 10 Over five years 613 594 594 593 574 558 558 558 11 Other securities 2 12 Trading account2 Investment account 11,033 11,073 11,164 11,156 11,269 11,359 11,421 11,648 U.S. government agencies 1,746 1,727 1,834 1,814 1,892 1,912 1,920 2,145 States and political subdivision, by maturity. 8,683 8,762 8,745 8,785 8,819 8,900 8,958 8,963 One year or less 1,242 1,334 1,339 1,334 1,348 1,361 1,374 1,339 Over one year 7,441 7,428 7,406 7,450 7,471 7,539 7,584 7,623 Other bonds, corporate stocks and securities 604 584 585 557 558 548 544 541 Loans 19 Federal funds sold 3 6,945 7,140 6,676 6,342 7,292 8,015 6,858 9,758 20 To commercial banks 4,439 3,696 3,958 3,757 4,606 3,698 3,054 6,427 21 To nonbank brokers and dealers in securities. 2,032 2,434 2,095 1,963 2,053 3,452 2,959 2,662 22 To others 473 1,010 622 622 632 865 845 669 23 Other loans, gross 83,515 82,984 84,105 83,814 83,265 85,784 85,149 86,758 24 Commercial and industrial 42,519 42,540 42,533 42,714 42,712 44,013 44,186 45,119 25 Bankers' acceptances and commercial paper 1,112 1,007 862 942 1,000 1,182 1,158 1,190 26 All other 41,407 41,533 41,671 41,772 41,712 42,831 43,028 43,929 27 U.S. addressees 39,205 39,350 39,456 39,555 39,485 40,594 40,910 41.773 28 Non-U.S. addressees 2,202 2,184 2,214 2,216 2,227 2,236 2,118 2,156 29 Real estate 11,435 11,510 11,556 11,583 11,613 11,649 11,696 11.774 30 To individuals for personal expenditures.... 7,826 7,859 7,917 7,971 8,012 8,040 8,084 8,140 To financial institutions 31 Commercial banks in the United States 1,104 861 1,053 1,067 968 1,031 1,236 983 32 Banks in foreign countries 3,069 3,041 2,990 2,911 3,248 3,226 3,326 3,317 33 Sales finance, personal finance companies, 3,814 3,919 3,683 3,531 3,506 3,940 3,821 3,762 34 Other financial institutions 4,450 4,493 4,618 4,756 4,775 4,796 4,834 4,814 35 To nonbank brokers and dealers in securities. 5,916 5,588 6,244 6,028 4,901 5,656 4,559 5,586 36 To others for purchasing and carrying securities4 455 452 450 456 456 476 479 464 37 To finance agricultural production 205 203 203 203 206 226 236 253 38 All other 2,724 2,518 2,857 2,595 2,866 2,720 2,691 2,544 39 LESS: Unearned income 858 867 870 879 890 892 903 912 40 Loan loss reserve 1,513 1,542 1,541 1,547 1,555 1,571 1,581 1,579 41 Other loans, net 81,144 80,575 81,694 81,388 80,819 83,321 82,665 84,266 42 Lease financing receivables 1,308 1,348 1,354 1,354 1,364 1,381 1,385 1,400 43 All other assets 5 27,765 27,818 28,714 26,936 26,424 27,533 29,081 27,746 44 Total assets 168,462 164,130 166,941 164,002 168,013 172,683 171,426 177,176 Deposits 45 Demand deposits 59,892 54,499 58,027 53,661 56,736 60,875 58,509 63,735 46 Mutual savings banks 410 345 410 297 275 405 365 306 Individuals, partnerships, and corporations... 30,073 27,826 30,669 27,984 27,462 31,854 29.494 29,064 States and political subdivisions 586 398 538 424 386 658 385 375 U.S. government 83 58 208 74 65 118 348 793 Commercial banks in the United States 17,885 15,900 15,750 15,267 17,706 17,768 17,595 21,405 Banks in foreign countries 5,423 5,605 5,451 5,118 5,328 5,391 5,721 5,466 Foreign governments and official institutions. 987 874 1,242 1,018 1,353 1,114 925 1,269 Certified and officers' checks 4,444 3,492 3,758 3,479 4,161 3,566 3,676 5,057 54 Time and savings deposits 40,723 40,939 40,959 41,132 41,066 40,552 41,146 41,490 55 Savings 10,004 9,984 9,962 9,936 9,891 9,930 9,924 9,858 56 Individuals and nonprofit organizations.... 9,420 9,412 9,393 9,361 9,306 9,361 9,364 9,299 57 Partnerships and corporations operated for profit 400 406 399 406 401 407 400 392 58 Domestic governmental units 169 155 157 153 165 151 149 156 59 All other 14 10 12 15 19 11 11 10 60 Time 30,719 30,955 30,997 31,196 31,175 30,622 31,222 31,632 61 Individuals, partnerships, and corporations, 24,926 25,164 25,172 25,451 25,521 25,048 25.495 25,875 62 States and political subdivisions 1,383 1,430 1,472 1,515 1,511 1,510 1,564 1,554 63 U.S. government 56 60 65 69 83 70 69 60 64 Commercial banks in the United States 1,301 1,314 1,309 1,290 1,189 1,170 1,244 1,315 65 Foreign governments, official institutions, and banks 3,054 2,988 2,979 2,871 2,870 2,824 2,849 2,827 66 Federal funds purchased 6 25,986 27,931 24,776 25,746 26,480 29,369 28,555 27,288 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks 100 1,435 100 930 68 Treasury tax-and-loan notes 1,132 616 433 1,083 1,043 138 516 1,764 69 All other liabilities for borrowed money 7,089 7,183 7,184 7,922 7,777 7,827 7,694 7,993 70 Other liabilities and subordinated note and debentures 20,132 19,349 20,575 20,854 21,412 20,327 20,428 21,279 71 Total liabilities 154,955 150,616 153,391 150,499 154,515 159,088 157,779 163,551 72 Residual (total assets minus total liabilities), 13,507 13,513 13,550 13,503 13,498 13,595 13,647 13,625 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 Digitized for FRAS4E. ROt her than financial institutions and brokers and dealers. analysis or for other analytic uses. 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 CCaatteeggoorryy Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 Sept. 5" Sept. 12^ Sept. 19p Sept. 26p BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and investments adjusted1... 476,595 479,505 479,141 479,575 480,542 491,356 491,665 494,156 490,481 2 Total loans (gross) adjusted1 373,034 375,892 374,998 375,338 376,078 383,809 384,109 387,434 383,990 3 Demand deposits adjusted2 104,144 104,026 106,806 101,968 102,035 105,855 104,395 100,821 99,825 4 Time deposits in accounts of $100,000 or more. 115,606 116,209 116,390 117,576 118,349 118,028 119,996 121,194 122,441 5 Negotiable CDs 81,446 81,995 82,297 83,525 84,261 83,836 85,708 86,707 87,803 6 Other time deposits 34,160 34,214 34,093 34,051 34,088 34,192 34,288 34,486 34,638 7 Loans sold outright to affiliates3 3,783 3,753 3,626 3,680 3,716 3,757 3,747 3,704 3,724 8 Commercial and industrial 2,866 2,813 2,706 2,723 2,769 2,770 2,742 2,751 2,772 9 Other 916 940 920 957 946 987 1,006 953 952 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and investments adjusted1... 446,295 449,095 448,650 449,088 449,875 460,690 460,764 463,353 459,549 11 Total loans (gross) adjusted1 350,358 353,122 352,139 352,455 353,059 360,757 360,818 364,257 360,687 12 Demand deposits adjusted2 96,714 96,674 99,510 94,780 94,658 98,801 97,002 93,670 92,703 13 Time deposits in accounts of $100,000 or more. 108,312 108,820 108,932 110,044 110,679 110,312 112,274 113,518 114,685 14 Negotiable CDs 76,513 76,881 76,928 77,926 78,522 78,063 79.948 80,982 81,983 15 Other time deposits 31,800 31,939 32,004 32,118 32,157 32,250 32,325 32,537 32,702 16 Loans sold outright to affiliates3 3,740 3,709 3,581 3,626 3,669 3,705 3,694 3,653 3,672 17 Commercial and industrial 2,847 2,793 2,686 2,702 2,750 2,751 2,722 2,730 2,750 18 Other 892 916 894 924 919 954 972 923 923 BANKS IN NEW YORK CITY 19 Total loans (gross) and investments adjusted i. 4. 102,215 102,810 103,083 102,575 102,069 106,952 105,782 107,345 104,632 20 Total loans (gross) adjusted1 84,917 85,566 85,770 85,332 84,982 89,070 87,717 89,106 86,813 21 Demand deposits adjusted2 23,918 23,771 26,309 23,499 22,541 26,036 23,219 22,226 21,768 22 Time deposits in accounts of $100,000 or more. 24,660 24,934 24,912 25,019 25,023 24,481 25,006 25,295 25,683 23 Negotiable CDs 17,304 17,416 17,304 17,466 17,650 17,022 17,467 17,741 18,108 24 Other time deposits 7,356 7,518 7,608 7,553 7,372 7,459 7,539 7,554 7,575 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 DomesticN onfinancial Statistics • October 1979 1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial Loans Millions of dollars Outstanding Net change during IIInnnddduuussstttrrryyy ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1979 1979 1979 May 30 June 27 July 25 r Aug. 29 Sept. 26p Q2 Q3p July Aug. Sept.p 1 Durable goods manufacturing 20,648 20,905 21,521 21,703 23,594 1,324 2,689 616 182 1,891 2 Nondurable goods manufacturing... 17,303 17,403 17,612 18,441 18,907 -86 1,504 209 829 466 3 Food, liquor, and tobacco 4,365 4,371 4,348 4,598 4,906 -440 535 -23 250 308 4 Textiles, apparel, and leather 4,547 4,701 4,860 5,090 5,029 495 328 158 231 -62 5 Petroleum refining 2,067 1,967 1,929 1,841 1,972 -310 6 -37 -88 131 6 Chemicals and rubber 3,496 3,448 3,437 3,641 3,627 -62 179 -11 204 -14 7 Other nondurable goods 2,827 2,916 3,038 3,270 3,372 230 456 122 232 102 8 Mining (including crude petroleum and natural gas) 10,888 11,008 11,221 1111,,444422 11,681 858 673 213 221 240 9 Trade 23,574 23,976 25,532 24,898 25,164 1,496 1,188 1,556 -634 266 10 Commodity dealers 1,957 1,917 2,100 1,675 1,859 25 -58 182 -424 184 11 Other wholesale 11,401 11,741 12,075 12,038 11,940 778 199 334 -37 -98 12 Retail 10,216 10,318 11,357 11,185 11,365 693 1,046 1,039 -172 180 13 Transportation, communication, and other public utilities 14,610 15,324 15,396 15,788 16,761 1,262 1,436 71 393 972 14 Transportation 6,405 6,451 6,495 6,691 6,834 185 382 44 195 143 15 Communication 1,886 2,050 2,106 2,139 2,325 199 274 56 33 186 16 Other public utilities 6,319 6,823 6,794 6,959 7,602 877 779 -28 164 643 17 Construction 5,744 5,583 5,861 5,805 5,891 210 308 278 -56 86 18 Services 16,868 17,250 17,822 18,082 18,359 1,180 1,109 572 260 277 19 All other1 14,847 15,444 13,737 14,010 13,881 1,481 -1,563 -1,707 273 -129 20 Total domestic loans 124,483 126,894 128,703 130,170 134,238 7,724 7,344 1,808 1,467 4,068 21 MEMO: Term loans (original maturity more than 1 year) included in domestic loans 63,328 64,474 63,572 65,275 67,375 3,960 2,901 -902 1,702 2,100 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 1.311 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars December outstanding Outstanding in 1979 SSoouurrccee 1976 1977 1978 Jan.P Feb.? Mar.f Apr.p May? Junef Julyf Aug .P Total nondeposit funds 1 Seasonally adjusted2 55.4 62.7 84.9 83.1 95.8 100.7 104.8 111.2 115.7 119.4 129.5 2 Not seasonally adjusted 54.2 61.3 83.9 82.2 93.7 98.4 102.5 113.3 115.5 118.2 131.1 Federal funds, RPs, and other borrowings from nonbanks 3 Seasonally adjusted3 47.1 58.4 74.8 73.2 80.2 80.9 82.3 84.3 84.4 86.5 92.1 4 Not seasonally adjusted 45.8 57.0 73.8 72.3 78.1 78.6 80.0 86.4 84.2 85.4 93.7 5 Net Eurodollar borrowings, not seasonally adjusted. 4.5 -0.5 6.3 6.3 12.0 16.3 18.9 23.2 27.5 29.1 33.8 6 Loans sold to affiliates, not seasonally adjusted4.... 3.8 4.8 3.8 3.6 3.6 3.5 3.6 3.7 3.8 3.7 3.7 MEMO 7 Security RP borrowings, seasonally adjusted 5 27.9 36.3 43.8 43.8 42.9 42.7 43.0 42.2 45.0 42.8 40.9 8 Not seasonally adjusted 27.0 35.1 42.4 40.8 41.4 42.2 42.5 44.8 44.5 42.5 42.5 9 U.S. Treasury demand balances, not seasonally adjusted6 4.4 5.1 10.2 11.9 8.3 6.5 5.3 8.4 10.8 13.2 9.8 10 Domestic chartered banks net positions with own foreign branches, not seasonally adjusted? -6.0 -12.5 -10.7 -10.1 -6.3 -4.5 -1.9 2.6 5.8 6.3 8.9 11 Gross due from balances 12.8 21.1 25.5 24.6 23.3 22.5 21.6 19.7 20.0 20.1 19.2 12 Gross due to balances 6.8 8.6 14.8 14.5 17.0 18.0 19.7 22.3 25.8 26.4 28.1 13 Foreign-related institutions net positions with directly related institutions, not seasonally adjusted 8 9.7 11.1 17.0 16.4 18.3 20.8 20.8 20.6 21.7 22.8 24.9 14 Gross due from balances 8.3 10.3 14.2 15.4 15.0 15.3 15.7 15.9 17.6 17.6 16.2 15 Gross due to balances 18.1 21.4 31.2 31.7 33.3 36.0 36.5 36.5 39.3 40.4 41.0 1. Commercial banks are those in the 50 states and the District of Banks and from foreign banks, term federal funds, overdrawn due from Columbia with national or state charters plus U.S. branches, agencies, bank balances, loan RPs, and participations in pooled loans. Includes and New York investment company subsidiaries of foreign banks and averages of daily figures for member banks and averages of current and Edge Act corporations. previous month-end data for foreign-related institutions. 2. Includes seasonally adjusted Federal funds, RPs, and other borrow- 4. Loans initially booked by the bank and later sold to affiliates that ings from nonbanks and not seasonally adjusted net Eurodollars and are still held by affiliates. Averages of Wednesday data. loans to affiliates. Includes averages of Wednesday data for domestic 5. Based on daily average data reported by 46 large banks. chartered banks and averages of current and previous month-end data for 6. Includes U.S. Treasury demand deposits and Treasury tax and loan foreign-related institutions. notes at commercial banks. Averages of daily data. 3. Other borrowings are borrowings on any instrument, such as a 7. Includes averages of daily figures for member banks and quarterly promissory note or due bill, given for the purpose of borrowing money call report figures for nonmember banks. for the banking business. This includes borrowings from Federal Reserve 8. Includes averages of current and previous month-end data. 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 Commercial banks TTyyppee ooff hhoollddeerr 1977 1978 I9792 11997744 11997755 11997766 DDeecc.. DDeecc.. DDeecc.. Dec. Mar. June Sept. Dec. Mar. June 1 All holders—Individuals, partnerships, and corporations 225.0 236.9 250.1 274.4 262.5 271.2 278.8 294.6 270.4 285.6 2 Financial business 19.0 20.1 22.3 25.0 24.5 25.7 25.9 27.8 24.4 25.4 3 Nonfinancial business 118.8 125.1 130.2 142.9 131.5 137.7 142.5 152.7 135.9 145.1 4 Consumer 73.3 78.0 82.6 91.0 91.8 92.9 95.0 97.4 93.9 98.6 5 Foreign 2.3 2.4 2.7 2.5 2.4 2.4 2.5 2.7 2.7 2.8 6 Other 11.7 11.3 12.4 12.9 12.3 12.4 13.1 14.1 13.5 13.7 Weekly reporting banks 1978 19793 11997755 11997766 11997777 DDeecc.. DDeecc.. DDeecc.. Aug. Sept. Oct. Nov. Dec. Mar. June 7 All holders—Individuals, partnerships, and corporations 124.4 128.5 139.1 137.7 139.7 141.3 142.7 147.0 121.9 128.8 8 Financial business 15.6 17.5 18.5 19.4 18.9 19.1 19.3 19.8 16.9 18.4 9 Nonfinancial business 69.9 69.7 76.3 72.0 74.1 75.0 75.7 79.0 64.6 68.1 10 Consumer 29.9 31.7 34.6 36.8 37.1 37.5 37.7 38.2 31.1 33.0 2.3 2.6 2.4 2.4 2.4 2.5 2.5 2.5 2.6 2.7 12 Other 6.6 7.1 7.4 7.1 7.3 7.2 7.5 7.5 6.7 6.6 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 Dec. 31, 1977. See "An- BULLETIN, p. 466. nouncements," p. 408 in the May 1978 BULLETIN. Beginning in March 2. Beginning with the March 1979 survey, the demand deposit ownership 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 1976 1977 Instrument Dec. Dec. Dec. Feb. Mar. Apr. May June July Aug. Commercial paper (seasonally adjusted) 1 All issuers 52,971 65,101 83,665 87,358 90,796 92,725 96,106 101,516 102,447 103,907 Financial companies1 Dealer-placed paper2 2 Total 7,261 8,884 12,296 13,419 14,247 14,961 15,551 16,537 17,042 17,379 1,900 2,132 33,,552211 33,,996699 33,,779933 4,251 44,,114411 3,826 3,951 44,,006622 Directly placed paper3 4 Total 32,511 40,484 51,630 54,586 55,653 55,313 57,886 61,256 60,532 60,402 5,959 7,102 12,314 12,166 12,642 12,788 13,799 15,130 14,722 15,817 6 Nonfinancial companies4 13,199 15,733 19,739 19,353 20,896 22,451 22,669 23,723 24,873 26,126 Bankers dollar acceptances (not seasonally adjusted) 7 Total 22,523 25,450 33,700 34,337 34,617 34,391 35,286 36,989 39,040 42,354 Holder 8 Accepting banks 10,442 10,434 8,579 7,715 7,645 7,535 7,844 8,180 9,275 7,994 9 Own bills 8,769 8,915 7,653 6,708 6,535 6,685 6,895 6,956 7,499 7,138 10 Bills bought 1,673 1,519 927 1,007 1,110 849 950 1,224 11,,777777 856 Federal Reserve Banks 991 954 1 0 204 252 0 1,400 1,159 475 12 Foreign correspondents 375 362 664 750 793 861 940 971 952 957 13 Others 10,715 13,904 24,456 r25,872 25,975 25,744 26,501 27,837 27,654 32,928 Basis 14 Imports into United States 4,992 6,378 8,574 9,114 9,281 8,679 9,007 9,202 9,499 9,847 15 Exports from United States 4,818 5,863 7,586 7,858 8,104 8,087 8,367 8,599 8,784 9,578 16 All other 12,713 13,209 17,540 17,365 17,232 17,625 17,912 19,189 20,756 22,929 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 Digitized foru nFdRerAwSritEinRg; and other investment activities. as communications, construction, manufacturing, mining, wholesale and http://fraser.s2tl.o Iunicslfueddes. oarlgl / financial company paper sold by dealers in the open retail trade, transportation, and services. market. Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • October 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—Oct. 13 10 1979—June 19. 11% 1978—Jan.. 7.93 1979—Jan.. 11.75 27, 10% Feb. 8.00 Feb., 11.75 July 27. 11% Mar. 8.00 Mar. 11.75 Nov. 1, 10% Apr. 8.00 Apr. 11.75 6 10% Aug. 16. 12 May 8.27 May, 11.75 17, 11 28. 12% June 8.63 June 11.65 24, 11% July. 9.00 July. 11.54 Sept. 7. 12% Aug. 9.01 Aug. 11.91 Dec. 26 11% 14. 13 Sept. 9.41 Sept. 12.90 21. 13% Oct.. 9.94 28. 13% Nov. 10.94 Dec. 11.55 1.35 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 6-11, 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) 8,295,363 881,138 521,863 461,301 1,402,779 678,498 4,349,784 2 Number of loans 148,187 115,179 15,657 7,224 7,779 1,063 1,286 3 Weighted average maturity (months) 2.7 3.2 2.9 3.1 3.2 2.9 2.3 4 Weighted average interest rate (percent per annum) 12.31 12.23 12.44 12.53 12.42 12.61 12.21 5 Interquartile range i 11.75-12.82 11.02-13.65 10.60-13.69 .75-13.52 11.75-13.25 11.99-13.03 11.75-12.40 Percentage of amount of loans 6 With floating rate 49.0 19.6 21.4 32.3 41.6 57.8 61.0 7 Made under commitment 46.0 26.5 42.8 40.2 45.3 59.9 49.0 LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS 8 Amount of loans (thousands of dollars) 1,888,708 358,723 169,065 120,865 1,240,055 9 Number of loans 29,692 28,087 847 177 581 10 Weighted average maturity (months) 45.1 44.9 45.4 51.2 44.5 11 Weighted average interest rate (percent per annum) 12.25 12.57 12.82 12.91 12.02 12 Interquartile range t 11.57-12.97 11.00-14.09 12.00-13.75 12.25-13.75 11.57-12.50 Percentage of amount of loans 13 With floating rate 48.8 32.8 58.1 68.2 50.3 14 Made under commitment 49.2 26.3 56.1 67.4 53.1 CONSTRUCTION AND LAND DEVELOPMENT LOANS 15 Amount of loans (thousands of dollars) 895,394 139,974 88,809 66,913 186,534 413,165 16 Number of loans 21,106 16,444 2,503 968 966 225 17 Weighted average maturity (months) 7.4 5.4 4.0 7.2 8.8 8.7 18 Weighted average interest rate (percent per annum) 12.52 11.49 12.49 12.79 12.95 12.64 19 Interquartile range* 11.30-13.75 10.34-12.40 11.46-12.96 12.00-13.75 12.34-14.00 11.00-13.75 Percentage of amount of loans 20 With floating rate 60.6 14.3 24.9 57. 68.8 80.7 21 Secured by real estate. 91.0 82.4 96.5 95.9 85.7 94.2 22 Made under commitment 71.5 63.2 66.8 67.9 75.0 74.3 Type of construction 23 1- to 4-family 40.1 82.5 84.8 53.8 41.9 13.1 24 Multifamily 9.4 1.8 5.1 13.5 13.8 10.3 24 Nonresidential 50.5 15.6 10.1 32.7 44.3 76.6 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) 817,603 150,832 126,103 116,791 150,651 184,649 88,578 27 Number of loans 59,186 42,815 8,970 3,574 2,363 1,280 184 28 Weighted average maturity (months) 6.2 6.9 6.6 8.0 5.6 4.2 4.5 29 Weighted average interest rate (percent per annum) 11.28 10.86 11.08 10.89 11.12 11.57 12.4 30 Interquartile range t 10.34-12.00 10.25-11.41 10.34-11.52 10.25-11.50 10.25-11.61 11.00-12.13 11.00-13.54 By purpose of loan 31 Feeder livestock 11.18 10.61 11.12 10.39 11.36 11.05 12.58 32 Other livestock 11.08 10.81 10.58 11.49 10.58 12.29 33 Other current operating expenses 11.37 10.89 11.06 10.93 11.23 12.51 12.12 34 Farm machinery and equipment 10.87 10.83 10.98 11.15 r r (2) 35 Other 11.50 10.98 11.67 10.87 11.50 11.82 12.59 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 E. 2 (416) statistical release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets All 1.36 INTEREST RATES Money and Capital Markets Averages, percent per annum 1979 1979, week ending IInnssttrruummeenntt 11997766 11997777 11997788 June July Aug. Sept. Sept. 1 Sept. 8 Sept. 15 Sept. 22 Sept. 29 Money market rates 5.05 5.54 7.94 10.29 10.47 10.94 11.43 11.16 11.02 11.30 11.37 11.61 Prime commercial paper2-3 2 90-to 119-day 5.24 5.54 7.94 9.76 9.87 10.43 11.63 10.88 11.24 11.73 11.78 1111..6688 3 4- to 6-month 5.35 5.60 7.99 9.71 9.82 10.39 11.60 10.87 11.24 11.70 11.74 11.64 4 Finance company paper, directly placed, 3- to 6-month2-3 5.22 5.49 7.78 9.44 9.39 9.82 10.59 1100..0077 10.30 10.58 1100..6644 1100..7788 5 Prime bankers acceptances, 90-day3*4 5.19 5.59 8.11 9.79 9.99 10.62 11.70 11.11 11.51 11.75 11.82 11.69 Certificates of deposit, secondary markets 6 1-month 5.07 5.48 7.88 9.94 10.04 10.58 11.70 1111..0000 11.35 11.76 11.86 11.78 7 3-month 5.27 5.64 8.22 9.95 10.11 10.71 11.89 11.24 11.58 11.99 12.05 11.87 8 6-month 5.62 5.92 8.61 9.98 10.23 10.86 12.01 11.45 11.77 12.07 12.15 12.00 9 Eurodollar deposits, 3-month6 5.57 6.05 8.74 10.52 10.87 11.53 12.61 12.10 12.19 12.61 12.83 12.64 U.S. Treasury bills3.7 Market yields 10 3-month 4.98 5.27 7.19 9.06 9.24 9.52 10.26 9.74 10.20 10.45 10.26 10.14 5.26 5.53 7.58 9.06 9.24 9.49 10.20 9.70 10.15 10.27 10.23 10.16 12 1-year 5.52 5.71 7.74 8.81 8.87 9.16 9.89 9.41 9.84 9.96 9.90 9.87 Rates on new issue 8 13 3-month 4.989 5.265 7.221 9.045 9.262 9.450 10.182 9.680 9.855 10.531 10.353 9.989 5.266 5.510 7.572 9.062 9.190 9.450 10.125 9.645 9.775 10.294 10.315 10.114 Capital market rates U.S. TREASURY NOTES AND BONDS Constant maturities9 15 1-year 5.88 6.09 8.34 9-. 57 9.64 9.98 10.84 10.28 10.75 10.91 10.89 10.81 16 2-year 6.45 8.34 9.22 9.14 9.46 10.06 9.75 10.04 10.06 10.08 10.05 17 3-year 6.77 6.69 8.29 8.95 8.94 9.14 9.69 9.40 9.68 9.66 9.72 9.71 18 5-year 7.18 6.99 8.32 8.85 8.90 9.06 9.41 9.27 9.42 9.36 9.41 9.45 19 7-year 7.42 7.23 8.36 8.86 8.92 9.05 9.38 9.23 9.38 9.34 9.37 9.41 20 10-year 7.61 7.42 8.41 8.91 8.95 9.03 9.33 9.17 9.33 9.31 9.32 9.38 21 20-year 7.86 7.67 8.48 8.91 8.92 8.97 9.21 9.04 9.18 9.19 9.19 9.26 22 30-year 88..4499 88..9922 88..9933 88..9988 99..1177 99..0055 99..1166 99..1155 99..1166 99..2211 Maturing in10 23 3 to 5 years 6.94 6.85 8.30 8.89 8.88 9.08 9.56 9.30 9.52 9.51 9.59 9.61 24 Over 10 years (long-term) 6.78 7.06 7.89 8.32 8.35 8.42 8.68 8.51 8.64 8.66 8.68 8.73 STATE AND LOCAL NOTES AND BONDS Moody's series11 25 Aaa 5.66 5.20 5.52 5.54 5.58 5.72 5.90 5.85 5.85 5.90 5.90 5.95 26 Baa 7.49 6.12 6.27 6.19 6.11 6.36 6.75 6.50 6.70 6.80 6.75 6.75 27 Bond Buyer series12 6.64 5.68 6.03 6.13 6.13 6.20 6.52 6.36 6.47 6.49 6.57 6.56 CORPORATE BONDS 28 Seasoned issues, all industries13 9.01 8.43 9.07 9.81 9.69 9.74 9.93 9.79 9.83 9.89 9.95 10.02 By rating groups 29 Aaa 8.43 88..0022 8.73 99..2299 99..2200 99..2233 9.44 9.30 9.34 9.42 9.49 9.50 30 Aa 8.75 8.24 8.92 9.66 9.49 9.53 9.70 9.57 9.62 9.65 9.72 9.80 31 A 9.09 8.49 9.12 9.89 9.75 9.85 10.03 9.91 9.97 10.00 10.03 10.08 32 Baa 9.75 8.97 9.45 10.38 10.29 10.35 10.54 10.37 10.41 10.48 10.57 10.68 Aaa utility bonds14 33 New issue 8.48 8.19 8.96 9.50 9.58 9.48 9 83 9.62 9 84 9 97 9.98 34 Recently offered issues 8.49 8.19 8.97 9.50 9.53 9.49 9.87 9.54 9.70 9! 87 9.92 9.'97 MEMO: Dividend/price ratioTS 35 Preferred stocks 7.97 7.60 8.25 8.87 8.93 9.02 9.16 9.09 9.19 9.13 9.13 9.13 36 Common stocks 3.77 4.56 5.28 5.53 5.50 5.30 5.31 5.22 5.37 5.30 5.32 5.24 1. Weekly figures are 7-day averages of daily effective rates for the week 9. Yield 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, b^sed on daily closing bid prices. a given day weighted by the volume of transactions at these rates. 10. Unweighted averages for all outstanding notes and bonds in maturity 2. Beginning November 1977, unweighted average of offering rates ranges shown, based on daily closing bid prices. "Long-term" includes quoted by at least five dealers (in the case of commercial paper), or all bonds neither due nor callable in less than 10 years, including several finance companies (in the case of finance paper). Previously, most repre- very low yielding "flower" bonds. sentative rate quoted by those dealers and finance companies. 11. General obligations only, based on figures for Thursday, from 3. Yields are quoted on a bank-discount basis. Moody's Investors Service. 4. Average of the midpoint of the range of daily dealer closing rates 12. Twenty issues of mixed quality. offered for domestic issues. 13. Averages of daily figures from Moody's Investors Service. 5. Five-day average of rates quoted by five dealers (3-month series was 14. Compilation of the Board of Governors of the Federal Reserve previously a 7-day average). System. 6. Averages of daily quotations for the week ending Wednesday. Issues included are long-term (20 years or more). New-issue yields 7. Except for new bill issues, yields are computed from daily closing are based on quotations on date of offering; those on recently offered bid prices. issues (included only for first 4 weeks after termination of underwriter 8.Rates are recorded in the week in which bills are issued. price restrictions), on Friday close-of-business quotations. 15. Provided by Standard and Poor's Corporation. 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A28 Domestic Nonfinancial Statistics • October 1979 1.37 STOCK MARKET Selected Statistics 1979 Indicator 1976 1977 1978 Mar. Apr. May June July Aug. Sept. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31,1965 = 50). 54.45 53.67 53.76 56.18 57.50 56.21 57.61 58.38 61.19 61.89 2 Industrial 60.44 57.84 58.30 61.89 63.64 62.21 63.57 64.24 67.71 69.17 3 Transportation 39.57 41.07 43.25 43.22 45.92 45.60 47.53 48.85 52.48 52.21 4 Utility 36.97 40.91 39.23 38.94 38.63 37.48 38.44 38.88 39.26 38.39 5 Finance 52.94 55.23 56.74 57.65 59.50 58.80 61.87 64.43 68.40 67.21 6 Standard & Poor's Corporation (1941-43 = 10)1.. 102.01 98.18 96.11 100.11 102.10 99.73 101.73 102.71 107.36 108.60 7 American Stock Exchange (Aug. 31,1973 = = 100). 101.63 116.18 144.56 171.51 181.14 180.81 196.08 197.63 208.29 223.00 Volume of trading (thousands of shares) 8 New York Stock Exchange 21,189 20,936 28,591 29,536 31,033 28,352 34,662 32,416 35,870 37,576 9 American Stock Exchange 2,565 2,514 3,922 4,105 4,262 3,888 5,236 3,890 4,503 5,405 Customer financing (end-of-period balances, in millions of dollars) 1 1 1 0 R M e a g r u g l i a n t e s d t o m ck a 3 r gin credit at brokers/dealers2 8 7 , , 1 9 6 6 6 0 9 9 , , 7 9 4 9 0 3 1 1 1 0 , , 0 8 3 3 5 0 1 1 1 0 , , 0 8 5 7 6 0 1 1 1 1 , , 4 2 1 2 6 0 1 1 1 1 , , 3 1 1 3 4 0 1 1 1 1 , , 7 5 6 9 3 0 1 1 2 1 , , 0 8 1 4 9 0 1 1 2 2 , , 2 0 3 6 6 0 T 1 1 2 3 C Su o b n s v c e r r i t p ib ti l o e n b i o s n su d e s s 204 2 250 3 2051 185 1 19 2 4 1831 1721 178 1 176 * n. a. Free credit balances at brokers4 14 Margin-account 585 640 835 830 835 840 895 885 910 15 Cash-account 1,855 2,060 2,510 2,490 2,550 2,590 2,880 3,025 2,995 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 21.0 23.0 22.0 21.0 19.0 14.0 18 40-49 23.0 36.0 28.0 29.0 29.0 30.0 28.0 28.0 26.0 n.a. 19 50-59 35.0 23.0 18.0 25.0 23.0 23.0 26.0 28.0 31.0 20 60-69 15.0 11.0 10.0 12.0 12.0 12.0 12.0 12.0 14.0 21 70-79 8.7 6.0 6.0 7.0 7.0 7.0 7.0 7.0 8.0 22 80 or more 6.0 5.0 5.0 6.0 6.0 6.0 6.0 6.0 7.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6.. 8,776 9,910 13,092 13,147 13,218 13,099 13,634 Distribution by equity status (percent) 24 Net credit status 41.3 43.4 41.3 43.2 41.3 42.6 Debit status, equity of 25 60 percent or more 47.8 44.9 45.1 46.8 47.6 48.6 47.3 26 Less than 60 percent 10.9 11.7 13.6 10.0 10.3 10.1 10.1 Margin requirements (percent of market value and effective date)^ Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 27 Margin stocks 70 80 65 55 65 50 28 Convertible bonds 50 60 50 50 50 50 29 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and in- 5. Each customer's equity in his collateral (market value of collateral surance companies. With this change the index includes 400 industrial less net debit balance) is expressed as a percentage of current collateral stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public values. utility (formerly 60), and 40 financial. 6. Balances that may be used by customers as the margin deposit re- 2. Margin credit includes all credit extended to purchase or carry quired for additional purchases. Balances may arise as transfers based stocks or related equity instruments and secured at least in part by stock. on loan values of other collateral in the customer's margin account or Credit extended is end-of-month data for member firms of the New York deposits of cash (usually sales proceeds) occur. Stock Exchange. 7. Regulations G, T, and U of the Federal Reserve Board of Governors, In addition to assigning a current loan value to margin stock generally, prescribed in accordance with the Securities Exchange Act or 1934, Regulations T and U permit special loan values for convertible bonds limit the amount of credit to purchase and carry margin stocks that may and stock acquired through exercise of subscription rights. be extended on securities as collateral by prescribing a maximum loan 3. A distribution of this total by equity class is shown on lines 17-22. value, which is a specified percentage of the market value of the collateral 4. Free credit balances are in accounts with no unfulfilled commitments at the time the credit is extended. Margin requirements are the difference to the brokers and are subject to withdrawal by customers on demand. between the market value (100 percent) and the maximum loan value. The term "margin stocks" is defined in the corresponding regulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Thrift Institutions A29 1.38 SAVINGS INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1978 1979 AAccccoouunntt 11997766 11997777 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.p Savings and loan associations 1 Assets 391,907 459,241 520,677 523,649 529,820 534,168 539,715 543,459 549,181 555,571 561, 209 566,692 2 Mortgages 323,005 381,163 429,420 432,858 435,460 437,905 441,420 445,705 451,054 456,629 460,710 464,702 3 Cash and investment securities1 35,724 39,150 45.869 44,855 47,653 49,018 50,130 48,674 48,257 48,231 49,477 50,001 4 Other 33,178 38,928 45,388 45,936 46,707 47,245 48,165 49,080 49,870 50,711 51,022 51,989 5 Liabilities and net worth 391,907 459,241 520,677 523,649 529,820 534,168 539,715 543,459 549,181 555,571 561, 209 566,692 335,912 386,800 425,207 431,009 435,752 438,633 446,981 445,831 447,872 454,738 456,756 457,976 7 Borrowed money 19,083 27,840 40,981 42,960 42,468 41,368 41,592 43,765 44,380 47,051 48,495 50,531 8 FHLBB 15,708 19,945 30,322 31,990 31,758 31,004 31,123 32,389 33,003 34,266 35,286 35,952 9 Other 3,375 7,895 10,659 10,970 10,610 10,364 10,469 11,376 11,377 12,785 13,209 14,579 10 Loans in process 6,840 9,911 11,015 10,737 10,445 10,287 10,346 10,706 11, 136 11,278 11,328 11,065 11 Other 8,074 9,506 14,666 9,918 11,971 14,250 10,919 12,971 15. 283 11,703 13,530 15,714 12 Net worth2 21,998 25,184 28,808 29,025 29,284 29,630 29,877 30,186 30,510 30,801 31,100 31,406 13 MEMO: Mortgage loan commitments outstanding3.. 14,826 19,875 20,738 18,911 18,053 19,038 21,085 22,923 2233,, 556699 22,777 22,366 22,114 Mutual savings banks^ 14 Assets 134,812 147,287 157,436 158,174 158,892 160,078 161,866 Loans 15 Mortgage 81,630 88,195 94,497 95,157 95,552 95.821 96,136 16 Other 5,183 6,210 7,921 7,195 7,744 8,455 9,421 Securities 17 U.S. government 5,840 5,895 5,035 4,959 4,838 4,801 4,814 n.a. n. a. n.a. n.a. 18 State and local government. 2,417 2,828 3,307 3,333 3,328 3,167 3,126 19 Corporate and other4 33,793 37,918 39,679 39,732 40,007 40,307 40,658 20 Cash 2,355 2,401 3,033 3,665 3,274 3,306 3,410 21 Other assets 3,593 3,839 3,962 4,131 4,149 4,222 4,300 22 Liabilities 134,812 147,287 157,436 158,174 158,892 160,078 161,866 n .a. 23 Deposits 122,877 134,017 141,155 142,701 142,879 143,539 145.650 145,096 145,056 146,057 145,757 24 Regular 5 121,961 132,744 139,697 141,170 141,388 142,071 144,042 143,210 143,271 144,161 143,843 25 Ordinary savings 74,535 78,005 72,398 71,816 69,244 68,817 68,829 67,758 67. 577 68,104 67,537 26 Time and other 47,426 54,739 67,299 69,354 72,145 73,254 75,213 75,452 75.694 76,057 76,306 27 Other 916 1,272 1,458 1,531 1 ,491 1,468 1,608 1,886 1,784 1, 896 1,914 28 Other liabilities 2,884 3,292 5,411 4,565 5,032 5,485 5,048 5,050 5,172 4, 545 5, 578 29 General reserve accounts.... 9,052 9,978 10,870 10,907 10,980 11,054 11,167 11,085 11,153 11,212 11,264 30 MEMO : Mortgage loan commitments outstanding6.. 2,439 4,066 4,843 4,400 4,366 4,453 4,482 4,449 4,352 n.a. n. a. Life insurance companies 31 Assets 321,552 351,722 386,375 389,924 394,185 396,190 399,579 402,963 405,627 409,853 414, 120 Securities 32 Government 17,942 19,553 20,000 20,009 20,244 20,222 20,463 20,510 20,381 20,397 20,468 33 United States7 5,368 5,315 4,866 4,822 5,063 5,114 5,234 5,272 5, 149 5,178 5, 228 34 State and local 5,594 6,051 6,388 6,402 6,348 6,255 6,259 6, 268 6,272 6,241 6,243 6,980 8,187 8,746 8,785 8,833 8,853 8,970 8,970 8,960 8,978 8,997 36 Business 157,246 175,654 198,188 198,105 201,861 202,843 204,895 206,160 207,775 209,804 212,876 n. a. 37 Bonds 122,984 141,891 163,422 162,587 166,093 167,548 168,622 169,817 171,762 173,130 175,854 38 Stocks 34,262 33,763 34,766 35,518 35,768 35,295 36,273 36,343 36,013 36,674 37,022 91,552 96,848 103,942 106,167 106,654 107,385 108,417 109,198 110,023 111,123 112,120 40 Real estate 10,476 11,060 11,667 11,764 11,862 11,943 11,484 12,086 12,101 12,199 12,351 41 Policy loans 25,834 27,556 29,779 30,146 30,469 30,778 31,160 31,512 31,832 32,131 32,390 42 Other assets 18,502 21,051 22,799 23,733 23,095 23,019 23,160 23,497 23,515 24,199 23,915 Credit unions 43 Total assets/liabilities and capital 4455,,222255 54,084 61,614 62,595 61,756 62,319 63,883 63,247 64,372 65, 603 66,563 67,271 44 Federal 24,396 29,574 34,215 34,681 34,165 34,419 35,289 34,653 35,268 35,986 36,733 37,045 45 State 20,829 24,510 27,399 27,914 27,591 27,900 28,594 28,594 29,104 29,617 29,830 30,226 46 Loans outstanding 34,384 42,055 51,103 51,807 51,526 51,716 52,480 52,542 53,100 53,831 54,160 55, 110 47 Federal 18,311 22,717 28,031 28,583 28,340 28,427 28,918 28,849 29,109 29,525 29,674 30,179 48 State 16,073 19,338 23,072 23,224 23,186 23,289 23,562 23,693 23,991 24,306 24,486 24,931 49 Savings 39,173 46,832 52,418 53,048 51,916 52,484 54,243 53,745 54,638 r55,948 56,512 56,701 50 Federal (shares) 21,130 25,849 28,992 29,326 28,427 28,743 29,741 29.339 29,755 30,563 30,857 30,890 51 State (shares and deposits). 18,043 20,983 23,426 23,722 23,489 23,741 24,502 24,406 24,883 r25, 386 25,655 25,811 For notes see bottom of page A30. 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A30 Domestic NonfinancialS tatistics • October 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 1978 1979 1979 Sept. 1977 1978 1976) HI H2 HI June July Aug. U.S. budget 1 Receipts1 81,773 357,762 401,997 210,650 206,275 246,574 53,910 33,268 39,353 2 Outlays1 94,729 402,725 450,836 222.561 238,186 245,616 40,687 40,482 54,279 3 Surplus, or deficit (—) -12,956 -44,963 -48,839 -li;912 -31,912 958 13,223 -7,214 -14,926 4 Trust funds -1,952 9,497 12,693 4,334 11,754 4,041 1,981 3,805 -4,673 5 Federal funds2 -11,004 -54,460 -61,532 -16,246 -43,666 -4,999 11,241 -3,408 -10,254 Off-budget entities surplus, or deficit (-) 6 Federal Financing Bank outlays -2,575 -8,415 -10,661 -5,105 -5,082 -7,712 -1,723 -809 -908 7 Other 3 790 -264 355 -790 1,843 -447 -264 -143 -169 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (—) -14,741 -53,642 -59,145 -17,806 -35,151 -7,201 11,236 -8,166 -16,003 Financed by 9 Borrowing from the public 18,027 53,516 59,115 23,378 30,314 6,039 -1,458 4,831 33,,226688 10 Cash and monetary assets (decrease, or increase ( —))4. -2,899 -2,247 -3,021 -5,098 3,381 -8,878 -13,044 4,711 6,535 11 Others -387 2,373 3,051 -474 1,456 10,040 3,266 -1,376 6,200 MEMO: 12 Treasury operating balance (level, end of period) 17,418 19,104 22,444 1177,,552266 16,291 17,485 17,485 13,530 6,950 13 Federal Reserve Banks 13,299 15,740 16,647 11,614 4,196 3,290 3,290 2,765 3,542 14 Tax and loan accounts 4,119 3,364 5,797 5,912 12,095 14,195 14,195 10,765 3,408 1. Effective June 1978, earned income credit payments in excess of 5. Includes accured interest payable to the public; deposit funds; misan individual's tax liability, formerly treated as income tax refunds, are cellaneous liability (including checks outstanding) and asset accounts; classified as outlays retroactive to January 1976. seignorage; increment on gold; net gain/loss for U.S. currency valuation 2. Half-year figures calculated as a residual (total surplus/deficit less adjustment; net gain/loss for IMF valuation adjustment; and profit on trust fund surplus/deficit). the sale of gold. 3. Includes Pension Benefit Guaranty Corp.; Postal Service Fund; Rural Electrification and Telephone Revolving Fund; and Rural Telephone SOURCE. "Monthly Treasury Statement of Receipts and Outlays of Bank. the U.S. Government," Treasury Bulletin, and the Budget of the United 4. Includes U.S. Treasury operating cash accounts; special drawing States Government, Fiscal Year 1980. rights; gold tranche drawing rights; loans to International Monetary Fund; and other cash and monetary assets. 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 Calend lar year TTrraannssiittiioonn qquuaarrtteerr FFiissccaall FFiissccaall SSoouurrccee oorr ttyyppee ((JJuullyy-- yyeeaarr yyeeaarr 1978 r 1979 1979 SSeepptt.. 11997777 11997788 11997766)) HI H2 HI June July Aug. RECEIPTS 1 All sources1 81,773 357,762 401,997 210,650 206,275 246,574 53,910 33,268 39,353 2 Individual income taxes, net 38,801 157,626 180,988 90,336 98,854 111,603 25,568 17,086 17,215 3 Withheld 3322,,994499 114444,,882200 116655,,221155 82,784 90,148 98,683 1188,,008800 16,714 16,952 4 Presidential Election Campaign Fund 1 37 39 36 3 32 4 0 3 5 Nonwithheld 6,809 42,062 47,804 37,584 10,777 44,116 8,424 1,241 1,041 6 Refunds i 958 2299,,229933 3322,,007700 30,068 2,075 31,228 940 869 781 Corporation income taxes 7 Gross receipts 9,808 60,057 65,380 38,496 28,536 42,427 16,016 2,518 1,661 8 Refunds 1,348 5,164 55,,442288 2,782 2,757 2,889 376 499 293 9 Social insurance taxes and contributions, net 2255,,776600 108,683 123,410 66,191 61,064 75,609 9,375 10,566 17,164 10 Payroll employment taxes and contributions 2 21,534 88,196 9999,,662266 51,668 51,052 5599,,229988 88,,337744 88,,885577 1133,,557777 11 Self-employment taxes and contributions 3 269 4,014 4,267 3,892 369 4,616 322 0 0 12 Unemployment insurance 2,698 11,312 13,850 7,800 6,727 8,623 188 1,204 2,847 13 Other net receipts 4 1,259 5,162 5,668 2,831 2,917 3,072 491 504 740 14 Excise taxes 4,473 17,548 18,376 8,835 9,879 8,984 1,464 1,659 1,498 15 Customs deposits 1,212 5,150 6,573 3,320 3,748 3,682 637 647 689 16 Estate and gift taxes 1,455 7,327 5,285 2,587 2,691 2,657 414 463 534 17 Miscellaneous receipts 5 1,612 6,536 7,413 3,667 4,260 4,501 811 828 886 OUTLAYS 18 All types i 94,729 402,725 450,836 222,561 238,186 245,616 40,687 40,482 54,279 19 National defense 22,307 97,501 105,186 52,535 55,124 57,643 9,973 10,397 10,657 20 International affairs 22,,119977 44,,881133 5,922 33,,334477 2,060 3,538 482 -427 944 21 General science, space, and technology 1,161 4,677 4,742 2,395 2,383 2,461 461 433 503 22 Energy 794 4,172 5,861 2,721 4,279 4,417 789 713 789 23 Natural resources and environment.. 2,532 10,000 10,925 4,690 6,020 5,672 900 1.154 1,394 24 Agriculture 581 5,532 7,731 2,435 4,967 3,020 -525 -369 -215 25 Commerce and housing credit 1,392 -44 3,325 -443 3,292 60 95 173 59 26 Transportation 3,304 14,636 15,444 7,215 8,740 7,688 1,340 1,552 1,702 27 Community and regional development 1,340 6,286 11,000 5,500 5,844 4,499 912 702 933 28 Education, training, employment, and social services 5,162 20,985 26,463 13,218 14,247 14,467 2,193 2,472 2,645 29 Health 8,721 38,785 43,676 21,147 23,830 24,860 4,268 4,108 4,632 30 Income security1 32,797 137,915 146,212 75,370 73,127 81,173 13,595 13,669 23,659 31 Veterans benefits and services 3,962 18,038 18,974 9,625 9,532 10,127 2,497 667 2,559 32 Administration of justice 859 3,600 3,802 1,945 1,989 2,096 323 336 397 33 General government 883 3,374 3,777 1,845 2,304 2,291 405 365 432 34 General-purpose fiscal assistance 2,092 9,499 9,601 4,678 4,610 3,890 76 1,800 53 35 Interest « 7,216 38,009 43,966 22,280 24,036 26,934 7,834 3,491 4,240 36 Undistributed offsetting receipts 6>7.. -2,567 -15,053 -15,772 -7,945 -8,199 -8,999 -4,931 -753 -1,103 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. 4. Supplementary medical insurance premiums, federal employee re- SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the tirement contributions, and Civil Service retirement and disability fund. U.S. Government" and the Budget of the U.S. Government, Fiscal Year 5. Deposits of earnings by Federal Reserve Banks and other miscel- 1980. laneous receipts. 6. Effective September 1976, "Interest" and "Undistributed Offsetting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • October 1979 1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1976 1977 1978 1979 IItteemm Dec. 31 June 30 Sept. 30 Dec. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 665.5 685.2 709.1 729.2 758.8 780.4 797.7 804.6 812.2 2 Public debt securities 653.5 674.4 698.8 718.9 749.0 771.5 789.2 796.8 804.9 3 Held by public 506.4 523.2 543.4 564.1 587.9 603.6 619.2 630.5 626.4 4 Held by agencies 147.1 151.2 155.5 154.8 161.1 168.0 170.0 166.3 178.5 5 Agency securities 12.0 10.8 10.3 10.2 9.8 8.9 8.5 7.8 7.3 6 Held by public 10.0 9.0 8.5 8.4 8.0 7.4 7.0 6.3 5.9 7 Held by agencies 1.9 1.8 1.8 1.8 1.8 1.5 1.5 1.5 1.5 8 Debt subject to statutory limit 654.7 675.6 700.0 720.1 750.2 772.7 790.3 797.9 806.0 9 Public debt securities 652.9 673.8 698.2 718.3 748.4 770.9 788.6 796.2 804.3 10 Other debt i 1.7 1.7 1.7 1.7 1.8 1.8 1.7 1.7 1.7 11 MEMO: Statutory debt limit 682.0 700.0 700.0 752.0 752.0 798.0 798.0 798.0 830.0 1. Includes guaranteed debt of government agencies, specified participa- NOTE. Data from Treasury Bulletin (U.S. Treasury Department), tion certificates, notes to international lending organizations, and District of Columbia stadium bonds. 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 May June July Aug. Sept. 1 Total gross public debt 576.6 653.5 718.9 789.2 804.8 804.9 807.5 813.1 826.5 By type 2 Interest-bearing debt 575.7 652.5 715.2 782.4 803.8 799.9 806.5 812.1 819.0 3 Marketable 363.2 421.3 459.9 487.5 506.9 499.3 507.0 509.2 506.7 4 Bills 157.5 164.0 161.1 161.7 163.1 159.9 159.9 160.5 161.4 5 Notes 167.1 216.7 251.8 265.8 276.1 272.1 278.3 277.6 274.2 6 Bonds 38.6 40.6 47.0 60.0 67.7 67.4 68.8 71.1 71.1 7 Nonmarketable1 212.5 231.2 255.3 294.8 296.9 300.5 299.5 302.9 312.3 8 Convertible bonds 2 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 24.0 24.1 24.2 24.6 24.6 10 Foreign issues 3 21.6 22.3 22.2 29.6 25.2 26.8 28.0 27.7 28.1 11 Government 21.6 22.3 22.2 28.0 21.0 22.7 23.9 23.5 24.0 12 Public 0 0 0 1.6 4.2 4.2 4.2 4.2 4.2 13 Savings bonds and notes 67.9 72.3 77.0 80.9 80.8 80.8 80.9 80.9 80.0 14 Government account series4 119.4 129.7 139.8 157.5 164.6 166.3 163.9 167.3 176.4 15 Non-interest-bearing debt 1.0 1.1 3.7 6.8 1.0 5.1 1.0 1.0 7.5 By holder5 16 U.S. government agencies and trust funds 139.1 147.1 154.8 170.0 177.1 178.6 176.3 89.8 97.0 102.5 109.6 106.2 109.2 111.4 18 Private investors 349.4 409.5 461.3 508.6 521.5 516.6 519.8 19 Commercial banks 85.1 103.8 101.4 93.4 98.5 95.0 93.4 4.5 5.9 5.9 5.2 5.2 5.0 4.7 9.5 12.7 15.1 15.0 14.7 14.5 14.5 22 Other corporations 20.2 27.7 22.7 20.6 26.2 24.0 21.2 n. a. n. a. 34.2 41.6 55.2 68.6 69.2 68.0 69.9 Individuals 67.3 72.0 76.7 80.7 80.6 80.6 80.7 25 Other securities 24.0 28.8 28.6 30.0 31.8 31.8 32.0 66.5 78.1 109.6 137.8 118.0 119.5 122.2 27 Other miscellaneous investors7 38.0 38.9 46.1 57.4 77.5 78.3 81.1 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 notes category above. NOTE. Gross public debt excludes guaranteed agency securities and, 3. Nonmarketable dollar-denominated and foreign currency denomin- beginning in July 1974, includes Federal Financing Bank security issues. ated series held by foreigners. Data by type of security from Monthly Statement of the Public Debt oj 4. Held almost entirely by U.S. government agencies and trust funds. the United States (U.S. Treasury Department); data by holder from 5. Data for Federal Reserve Banks and U.S. government agencies and Treasury Bulletin. trust funds are actual holdings; data for other groups are Treasury estimates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A33 1.43 U.S. GOVERNMENT MARKETABLE SECURITIES Ownership, by maturity Par value; millions of dollars, end of period 1979 1979 TTyyppee ooff hhoollddeerr 1977 11997788 1977 1978 June July June July All maturities 1 to 5 years 459,927 487,546 499,343 506,994 151,264 162,886 155,150 160,356 2 U.S. government agencies and trust funds 14,420 12.695 12,452 12,448 4,788 3,310 2,503 2,464 3 Federal Reserve Banks 101,191 109,616 109,241 111,445 27,012 31,283 28,204 28,430 344,315 365,235 377,650 383,102 119,464 128,293 124,443 129,462 75,363 68,890 67,790 67,332 38,691 38,390 36,028 37,099 4,379 3,499 3,287 3,275 2,112 1,918 1,765 1,767 12,378 11.635 11,612 11,728 4,729 4,664 4,657 4,629 9,474 8,272 8,826 7,597 3,183 3,635 3,068 2,663 4,817 3.835 3,669 3,587 2,368 2,255 2,013 2,040 15,495 18,815 18,023 18,049 3,875 3,997 4,016 4,049 222,409 250,288 264,442 271,534 64,505 73,433 72,896 77,215 Total, within 1 year 5 to 10 years 12 All holders 230,691 228,516 243,171 244,203 45,328 50,400 47,561 47,556 13 U.S. government agencies and trust funds 1,906 1,488 2,280 2,318 2,129 1,989 1 ,765 1,765 14 Federal Reserve Banks 56,702 52,801 56,778 58,608 10,404 14,809 12,436 12,435 15 Private investors 172,084 174,227 184,114 183,277 32,795 33,601 33,359 33,355 29,477 20,608 21,906 20,604 6,162 7,490 7,363 7,103 1,400 817 804 800 584 496 461 453 2,398 1,838 1,860 1,924 3,204 2,899 2,750 2,805 5,770 4,048 5,069 4,230 307 369 354 331 2,236 1,414 1,499 1,395 143 89 82 75 7,917 8,194 6,682 6,270 1,283 1,588 1,693 1,659 22 All others 122,885 137,309 146,293 148,054 21,112 20,671 20,656 20,930 Bills, within 1 year 10 to 20 years 23 All holders 161,081 161,747 159,890 159,938 12,906 19,800 24,922 26,341 24 U.S. government agencies and trust funds 32 2 * * 3,102 3,876 4,524 4,520 25 Federal Reserve Banks 42,004 42,397 40,309 41,338 1,510 2,088 3,127 3,204 26 Private investors 119,035 119,348 119,580 118,600 8,295 13,836 17,271 18,617 27 Commercial banks 11,996 5,707 6,036 5,030 456 956 1,093 1,162 28 Mutual savings banks 484 150 130 126 137 143 139 139 1,187 753 412 389 1,245 1,460 1,489 1,453 30 Nonfinancial corporations 4,329 1,792 2,602 1,632 133 86 219 231 31 Savings and loan associations 806 262 248 217 54 60 60 60 32 State and local governments 6,092 5,524 3,770 3,362 890 1,420 1,762 1,968 33 All others 94,152 105,161 106,382 107,763 5,380 9,711 12,508 13,604 Other, within 1 year Over 20 years 34 AH holders 69,610 66,769 83,282 84,265 19,738 25,944 28,538 28,538 35 U.S. government agencies and trust funds 1,874 1,487 2,280 2,318 2,495 2,031 1,380 1,380 36 Federal Reserve Banks 14,698 10,404 16,469 17,270 5,564 8,635 8,696 8,767 37 Private investors 53,039 54,879 64,534 64,677 11,679 15,278 18,461 18,391 38 Commercial banks 15,482 14,901 15,870 15,575 578 1,446 1,400 1,364 39 Mutual savings banks 916 667 674 674 146 126 117 117 40 Insurance companies 1,211 1,084 1,447 1,535 802 774 856 915 41 Nonfinancial corporations 1,441 2,256 2,467 2,598 81 135 117 142 1,430 1,152 1,251 1,177 16 17 15 16 43 State and local governments 1,825 2,670 2,912 2,908 1,530 3,616 3,869 4,104 44 All others 28,733 32,149 39,911 40,290 8,526 9,164 12,088 11,732 NOTE. Direct public issues only. Based on Treasury Survey of Owner- (1) 5,449 commercial banks, 461 mutual savings banks, and 723 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) 490 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 July 31, 1979: in the Treasury Survey, including investor groups not listed separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • October 1979 1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1979 1979, week ending Wednesday IItteemm 11997766 11997777 11997788 June July Aug. June 20 June 27 July 4 July 11 July 18 July 25 1 U.S. government securities.. . 10,449 10,838 10,285 15,284 11,113 12,256 14,476 14,453 13,343 11,543 9,799 12,763 By maturity 2 Bills 6,676 6,746 6,173 9,286 6,738 6,787 9,546 8,365 77,,771166 7,096 55,,776611 7,843 3 Other within 1 year 210 237 392 448 398 466 415 479 467 342 323 309 4 1-5 years 2,317 2,320 1,889 2,562 1,979 2,326 2,310 2,968 2,288 2,029 1,868 2,291 5 5-10 years 1,019 1,148 965 1,472 907 1,272 1,106 1,319 1,052 998 757 1,095 6 Over 10 years 229 388 866 1,516 1,092 1,405 1,099 1,321 1,820 1,078 1,091 1,225 By type of customer 1 U.S. government securities dealers 1,360 1,267 1,135 1,335 1,086 1,480 1,298 1,063 1,303 1,038 961 1,041 8 U.S. government securities brokers 3,407 3,709 3,838 6,112 4,491 4,693 5,645 5,892 5,091 4,962 3,943 5,298 9 Commercial banks 2,426 2,295 1,804 2,447 1,797 1,639 2,121 2,338 2,251 1,815 1,459 2,259 10 All others i 3,257 3,568 3,508 5,390 3,740 4,443 5,412 5,160 4,699 3,729 3,437 4,164 11 Federal agency securities.... 1,548 1,729 1,894 3,232 2,511 2,343 2,477 3,061 3,189 2,276 2,384 2,663 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 IItteemm 11997766 11997777 11997788 June July Aug. May 30 June 6 June 13 June 20 June 27 July 4 Positions2 1111 UUUU....SSSS.... ggggoooovvvveeeerrrrnnnnmmmmeeeennnntttt sssseeeeccccuuuurrrriiiittttiiiieeeessss.... .... .... 7,592 5,172 2,656 '7,167 '2,979 1,128 8,115 7,919 8,382 6,656 5,950 6,180 2222 BBBBiiiillllllllssss 6,290 4,772 2,452 '7,446 3,634 1,306 7,677 7,925 8,759 7,415 6,035 5,937 3333 OOOOtttthhhheeeerrrr wwwwiiiitttthhhhiiiinnnn 1111 yyyyeeeeaaaarrrr 188 99 260 101 52 -23 46 -139 12 101 286 315 4444 1111----5555 yyyyeeeeaaaarrrrssss 515 60 -92 '-436 -513 -299 -367 -419 -551 -671 -109 -409 5555 5555----11110000 yyyyeeeeaaaarrrrssss 402 92 40 223 46 312 354 376 234 195 165 150 198 149 -4 -167 -240 -168 405 177 -73 -383 -427 115 7777 FFFFeeeeddddeeeerrrraaaallll aaaaggggeeeennnnccccyyyy sssseeeeccccuuuurrrriiiittttiiiieeeessss................ 729 693 606 2,168 '1,983 1,975 2,284 2,424 2,368 2,005 1,915 2,262 Financing 3 8888 AAAAllllllll ssssoooouuuurrrrcccceeeessss 8,715 9,877 10,204 17,111 16,217 16,173 17,211 17,389 18,640 18,096 14,821 15,814 CCCCoooommmmmmmmeeeerrrrcccciiiiaaaallll bbbbaaaannnnkkkkssss 9999 NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy 1,896 1,313 599 1,638 1,266 773 1,279 1,252 1,818 2,137 1,440 1,576 11110000 OOOOuuuuttttssssiiiiddddeeee NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy............ 1,660 1,987 2,174 2,883 2,324 2,562 3,615 3,728 3,421 2,826 2,152 1,968 11111111 CCCCoooorrrrppppoooorrrraaaattttiiiioooonnnnssss1111 1,479 2,423 2,370 3,410 3,434 3,979 3,603 3,761 4,100 3,142 2,930 2,886 11112222 AAAAllllllll ooootttthhhheeeerrrrssss 3,681 4,155 5,052 9,180 9,193 8,859 8,714 '8,648 9,300 9,990 8,298 9,384 1. All business corporations except commercial banks and insurance firms and dealer departments of commercial banks against U.S. governcompanies. 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 1979i Agency 1976 1977 1978 Jan. Feb. Mar. Apr. May June 1 Federal and federally sponsored agencies1 103,848 112,472 137,063 138,726 140,999 143,265 145,556 146,429 149,612 2 Federal agencies 22,419 22,760 2233,,448888 23,431 23,485 23,507 23,568 23,366 24,170 3 Defense Department2 1,113 983 886688 864 859 839 822 807 796 4 Export-Import Bank3,4 8,574 8,671 8,711 8,515 8,499 8,326 8,322 8,107 8,806 5 Federal Housing Administration 5 575 581 588 582 586 580 576 568 562 6 Government National Mortgage Association participation certificates6 4,120 3,743 3,141 3,141 3,141 3,141 3,099 3,099 3,039 7 Postal Service 7 2,998 2,431 2,364 2,364 2.364 2,364 2,364 2,202 2,202 8 Tennessee Valley Authority 4,935 6,015 7,460 7,620 7,690 7,900 7,985 8,155 8,335 9 United States Railway Association7 104 336 356 345 346 357 400 428 430 10 Federally sponsored agencies1 81.429 89,712 113,575 115,295 117,514 119,758 121,988 123,063 125,442 11 Federal Home Loan Banks 16,811 18,345 27,563 27,677 28,447 28,265 28,121 28,577 28,758 12 Federal Home Loan Mortgage Corporation.. 1,690 1,686 2,262 2,262 2,461 2,333 2,330 2,323 2,522 13 Federal National Mortgage Association 30,565 31,890 41,080 41,917 42,405 43,625 44,792 44.639 45,775 14 Federal Land Banks 17,127 19,118 20,360 19,275 19,275 19,275 18,389 18,389 18,389 15 Federal Intermediate Credit Banks 10,494 11,174 11,469 9,978 8,958 7,890 6,994 5,958 5,122 16 Banks for Cooperatives 4,330 4,434 4,843 4,392 3,852 3,351 2,473 1,483 785 17 Farm Credit Banks1 2,548 5,081 8,877 11.134 13,987 17,838 20,597 22,949 18 Student Loan Marketing Association8 410 515 915 915 980 1,030 1,050 1,095 1,140 19 Other 2 2 2 2 2 2 1 2 2 MEMO: 20 Federal Financing Bank debt7.9 28,711 3388,,558800 51,298 52,154 53,221 55,310 56,610 58,186 60,816 Lending to federal and federally sponsored agencies 21 Export-Import Bank4 5,208 5,834 6,898 6,898 6,898 7,131 7,131 7,131 7,846 22 Postal Service7 2,748 2,181 2,114 2,114 2,114 2,114 2,114 1,952 1,952 23 Student Loan Marketing Association8 410 515 915 915 980 1,030 1,050 1,095 1,140 24 Tennessee Valley Authority 3,110 4,190 5,635 5,795 5,865 6,075 6,260 6,430 6,610 25 United States Railway Association7 104 336 356 345 346 357 400 428 430 Other lending10 26 Farmers Home Administration 10,750 16,095 23,825 24,445 25,160 25,985 26,890 28,050 29,200 27 Rural Electrification Administration 1,415 2,647 4,604 4,680 4,735 4,962 5,122 5,253 5,497 28 Other 4,966 6,782 6,951 6,962 7,123 7,656 7,643 7,847 8,141 1. In September 1977 the Farm Credit Banks issued their first consoli- Department of Housing and Urban Development; Small Business Addated bonds, and in January 1979 they began issuing these bonds on a ministration ; and the Veterans Administration. regular basis to replace the financing activities of the Federal Land Banks, 7. Off-budget. the Federal Intermediate Credit Banks, and the Banks for Cooperatives. 8. Unlike other federally sponsored agencies, the Student Loan Line 17 represents those consolidated bonds outstanding, as well as any Marketing Association may borrow from the Federal Financing Bank discount notes that have been issued. Lines 1 and 10 reflect the addition (FFB) since its obligations are guaranteed by the Department of Health, of this item. Education, and Welfare. 2. Consists of mortages assumed by the Defense Department between 9. The FFB, which began operations in 1974, is authorized to purchase 1957 and 1963 under family housing and homeowners assistance programs. or sell obligations issued, sold, or guaranteed by other federal agencies. 3. Includes participation certificates reclassified as debt beginning Since FFB incurs debt solely for the purpose of lending to other agencies, Oct. 1, 1976. its debt is not included in the main portion of the table in order to avoid 4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget double counting. thereafter. 10. Includes FFB purchases of agency assets and guaranteed loans; 5. Consists of debentures issued in payment of Federal Housing Ad- the latter contain loans guaranteed by numerous agencies with the ministration insurance claims. Once issued, these securities may be sold guarantees of any particular agency being generally small. The Farmers privately on the securities market. Home Administration item consists exclusively of agency assets, while the 6. Certificates of participation issued prior to fiscal 1969 by the Govern- Rural Electrification Administration entry contains both agency assets ment National Mortgage Association acting as trustee for the Farmers and guaranteed loans. Home Administration; Department of Health, Education, and Welfare; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • October 1979 1.47 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1979 Type of issue or issuer, 1976 1977 1978 or use Feb.r Mar.r Apr.r May r Juner July 1 All issues, new and refunding 1 35,313 46,769 48,607 2,599 4,648 3,512 3,032 4,578 3,265 Type of issue 2 General obligation 18,040 18,042 17,854 955 1,060 1,258 1,137 1,527 793 3 Revenue 17,140 28,655 30,658 1,640 3,580 2,243 1,893 3,032 2,469 5 U.S. government loans 133 72 95 4 8 11 2 19 3 Type of issuer 6 State 7,054 6,354 6,632 580 436 298 205 642 234 7 Special district and statutory authority 15,304 21,717 24,156 1,178 2,930 1,709 1,464 1,911 1,532 8 Municipalities, counties, townships, school districts 12,845 18,623 17,718 838 1,274 1,495 1,361 2,005 1,497 9 Issues for new capital, total 32,108 36,189 37,629 2,572 4,635 3,482 3,023 4,233 3,087 Use of proceeds 10 Education 4,900 5,076 5,003 420 281 562 665 527 392 11 Transportation 2,586 2,951 3,460 223 204 134 125 278 141 12 Utilities and conservation 9,594 8,119 9,026 735 1,134 508 590 981 881 13 Social welfare 6,566 8,274 10,494 731 2,036 1,499 582 1,332 1,180 14 Industrial aid 483 4,676 3,526 197 315 182 399 321 253 15 Other purposes 7,979 7,093 6,120 266 665 597 662 794 240 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 1979 Type of issue or issuer, 1976 1977 or use Jan. Feb. Apr. May r June 1 All issues 1 53,488 53,792 47,230 3,770 3,170 4,401 4,311 4,167 6,044 2 Bonds 42,380 42,015 36,872 3,106 2,257 3,729 3,732 3,575 5,163 Type of offering 3 Public 26,453 24,072 19,815 1,282 ,336 1,904 2,984 1,999 4,146 4 Private placement 15,927 17,943 17,057 1,824 921 1,825 748 1,576 1,017 Industry group 5 Manufacturing 13,264 12,204 9,572 893 278 739 534 1,208 1,096 6 Commercial and miscellaneous 4,372 6,234 5,246 494 279 362 26 267 561 7 Transportation 4,387 1,996 2,007 142 266 245 264 205 433 8 Public utility 8,297 8,262 7,092 460 517 721 866 638 1,054 9 Communication 2,787 3,063 3,373 259 558 517 261 102 379 10 Real estate and financial 9,274 10,258 9,586 858 359 1,145 ,779 1,154 1,640 11 Stocks 11,108 11,777 10,358 664 913 672 579 592 881 Type 12 Preferred 2,803 3,916 2,832 171 201 231 155 174 278 13 Common 8,305 7,861 7,526 493 712 441 424 418 603 Industry group 14 Manufacturing 2,237 1,189 1,241 41 121 24 36 85 41 15 Commercial and miscellaneous 1,183 1,834 1,816 169 93 114 210 203 363 16 Transportation 24 456 263 55 49 17 Public utility 6,121 5,865 5,140 357 669 335 257 227 248 18 Communication 776 1,379 264 65 7 30 19 Real estate and financial 771 1,049 1,631 "96* "29 79 "78' 21 200 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 1979 IItteemm 11997777 11997788 Feb. Mar. Apr. May June July Aug. INVESTMENT COMPANIES1 1 Sales of own shares2 6,401 6,645 451 523 594 549 676 744 675 2 Redemptions of own shares3 6,027 7,231 548 646 761 715 667 706 832 3 Net sales 357 -586 -97 -123 -175 -166 9 38 -157 4 Assets4 45,049 44,980 45,016 47,051 47,142 46,431 48,064 48,771 50,793 5 Cash position 5 3,274 4,507 4,851 4,746 4,862 4,869 5,012 5,052 4,924 6 Other 41,775 40,473 40,165 42,305 42,280 41,562 43,052 43,719 45,869 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 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1 Profits before tax 156.0 177.1 206.0 183.0 177.5 207.2 212.0 227.4 233.3 227.9 2 Profits tax liability 63.8 72.6 84.5 75.1 70.8 84.7 87.5 95.1 91.3 88.7 3 Profits after tax 92.2 104.5 121.5 107.9 106.7 122.4 124.5 132.3 142.0 139.3 4 Dividends 37.5 42.1 47.2 43.4 45.1 46.0 47.8 49.7 51.5 52.3 5 Undistributed profits 54.7 62.4 74.3 64.5 61.6 76.4 76.8 82.6 90.5 87.0 97.1 109.3 119.8 113.1 116.5 119.1 120.6 123.1 125.5 130.4 7 Net cash flow 151.8 171.7 194.1 177.6 178.1 195.5 197.3 205,7 216.0 217.3 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 Nonfinancial Statistics • October 1979 1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1977 1978 1979 Account 1975 1976 Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql 1 Current assets 759.0 826.3 858.5 881.8 900.9 925.0 954.2 992.6 1,028.1 1,078.2 2 Cash 82.1 87.3 83.3 83.5 94.3 88.8 91.3 91.6 103.5 102.2 3 U.S. government securities 19.0 23.6 19.9 19.3 18.7 18.6 17.3 16.1 17.8 19.1 4 Notes and accounts receivable 272.1 293.3 313.0 326.9 325.0 337.4 356.0 376.4 381.9 405.0 5 Inventories 315.9 342.9 359.9 368.3 375.6 390.5 399.3 415.5 428.3 452.6 6 Other 69.9 79.2 82.5 83.8 87.3 89.6 90.3 92.9 96.5 99.3 7 Current liabilities 451.6 492.7 514.1 533.2 546.8 574.2 593.5 626.3 662.2 701.8 8 Notes and accounts payable 264.2 282.0 295.9 306.1 313.7 325.2 337.9 356.2 375.1 392.6 9 Other 187.4 210.6 218.1 227.1 233.1 249.0 255.6 270.0 287.1 309.2 10 Net working capital 307.4 333.6 344.5 348.6 354.1 350.7 360.7 366.3 365.9 376.4 11 MEMO: Current ratioI 1.681 1.677 1.670 1.654 1.648 1.611 1.608 1.585 1.552 1.536 1. Ratio of total current assets to total current liabilities. All data in this table have been revised to reflect the most current benchmarks. Complete data are available upon request from the Flow 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. 1978 1979 IInndduussttrryy 11997777 11997788 Ql Q2 Q3 Q4 Ql Q2r Q3 r2 Q4r2 1 All industries 135.72 153.60 144.25 150.76 155.41 163.96 165.94 173.48 175.29 179.56 Manufacturing 2 Durable goods industries 27.75 31.59 28.72 31.40 32.25 33.99 34.00 36.86 38.03 40.38 3 Nondurable goods industries 32.33 35.86 32.86 35.80 35.50 39.26 37.56 39.56 40.27 41.58 Nonmanufacturing 4 Mining 4.49 4.81 4.45 4.81 4.99 4.98 5.46 5.31 5.30 5.58 Transportation 5 Railroad 2.82 3.33 3.35 3.09 3.38 3.49 4.02 3.66 4.13 3.92 6 Air 1.63 2.34 2.67 2.08 2.20 2.39 3.35 3.26 2.92 3.15 7 Other 2.55 2.42 2.44 2.23 2.47 2.55 2.71 2.79 3.24 3.08 Public utilities 8 Electric 21.57 24.71 23.15 23.83 24.92 26.95 27.70 28.06 28.52 27.46 9 Gas and other 4.21 4.72 4.78 4.62 4.70 4.78 4.66 5.18 4.74 5.33 10 Communication 15.43 18.15 17.07 18.18 18.90 18.46 18.75 20.29 11 Commercial and other1 22.95 25.67 24.76 24.71 26.09 27.12 27.73 28.51 I 48.13 49.08 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 AAccccoouunntt 1973 1974 1975 1976 1977 Q2 Q3 Q4 Q1 Q2 ASSETS Account receivable, gross 1 Consumer 35.4 36.1 36.0 38.6 44.0 47.1 49.7 52.6 54.9 58.7 2 Business 32.3 37.2 39.3 44.7 55.2 59.5 58.3 63.3 66.7 70.1 3 Total 67.7 73.3 75.3 83.4 99.2 106.6 108.0 116.0 121.6 128.8 4 LESS: Reserves for unearned income and losses. 8.4 9.0 9.4 10.5 12.7 14.1 14.3 15.6 16.5 17.7 5 Accounts receivable, net 59.3 64.2 65.9 72.9 86.5 92.6 93.7 100.4 105.1 111.1 6 Cash and bank deposits 2.6 3.0 2.9 2.6 2.6 2.9 2.7 3.5 7 Securities .8 .4 1.0 1.1 .9 1.3 1.8 1.3 | 1 23.8 24.6 8 All other 10.6 12.0 11.8 12.6 14.3 16.2 17.1 17.3 73.2 79.6 81.6 89.2 104.3 112.9 115.3 122.4 128.9 135.8 LIABILITIES 10 Bank loans 7.2 9.7 8.0 6.3 5.9 5.4 5.4 6.5 6.5 7.3 11 Commercial paper 19.7 20.7 22.2 23.7 29.6 31.3 29.3 34.5 38.1 41.0 Debt 12 Short-term, n.e.c 4.6 4.9 4.5 5.4 6.2 6.6 6.8 8.1 6.7 8.8 13 Long-term, n.e.c 24.6 26.5 27.6 32.3 36.0 40.1 41.3 43.6 44.5 46.0 14 Other 5.6 5.5 6.8 8.1 11.5 13.6 15.2 12.6 15.1 14.4 15 Capital, surplus, and undivided profits 11.5 12.4 12.5 13.4 15.1 16.0 17.3 17.2 18.0 18.2 16 Total liabilities and capital 73.2 79.6 81.6 89.2 104.3 112.9 115.3 122.4 128.9 135.8 1. Beginning Q1 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 July 31, 1979 1979 1979 19791 May June July May June July May June July 1 Total 70,271 892 1,361 1,234 17,432 16,788 15,453 16,540 15,427 14,219 2 Retail automotive (commercial vehicles) 15,482 17 -32 -25 1,167 1,116 1,118 1,150 1,148 1,143 3 Wholesale automotive 16,567 757 655 526 6,790 5,919 5,804 6,033 5,264 5,278 4 Retail paper on business, industrial and farm equipment 16,862 -95 449 -31 1,084 1,075 1,171 1,179 626 1,202 5 Loans on commercial accounts receivable2.. 6 Factored commercial accounts receivable2... } 6,313 4 -135 -91 6,191 6,097 5,004 6,187 6,232 5,095 7 All other business credit 14,847 209 424 855 2,200 2,581 2,356 1,991 2,157 1,501 1. Not seasonally adjusted. 2. Beginning January 1979 the categories "Loans on commercial accounts receivable" and "Factored commercial accounts receivable" are combined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • October 1979 1.55 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1979 Item 1976 1977 1978 Mar. Apr. May June July Aug. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 48.4 54.3 62.6 68.1 75.4 72.3 73.7 74.3 80.0 2 Amount of loan (thousands of dollars) 35.9 40.5 45.9 49.9 54.9 51.4 52.5 52.7 56.9 3 Loan/price ratio (percent) 74.2 76.3 75.3 75.4 75.1 73.2 73.5 73.0 73.1 4 Maturity (years) 27.2 27.9 28.0 28.5 29.0 28.2 28.4 28.1 28.1 5 Fees and charges (percent of loan amount) 2 1.44 1.33 1.39 1.65 1.75 1.59 1.53 1.63 1.60 6 Contract rate (percent per annum) 8.76 8.80 9.30 10.02 10.06 10.20 10.39 10.49 10.73 Yield (percent per annum) 7 FHLBB series 3 8.99 99..0011 9.54 10.30 10.36 10.47 1100..6666 10.78 11.01 8 HUD series4 8.99 8.95 9.68 10.35 10.55 10.80 10.90 10.95 11.10 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 8.82 8.68 9.70 10.19 n.a. 10.61 10.49 10.46 10.58 8.17 8.04 8.98 9.70 9.79 9.89 9.78 9.77 9.91 FNMA auctions7 11 Government-underwritten loans 8.99 8.73 9.77 10.42 10.59 10.84 10.77 10.66 10.66 9.11 8.98 10.01 10.94 11.03 11.35 11.57 11.52 11.52 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 32,904 34,370 43,311 46,410 47,028 47,757 48,206 48,539 48,909 14 FHA-insured 18,916 18,457 21,243 22,601 22,773 23,008 23,204 23,378 23,526 15 VA-guaranteed 9,212 9,315 10,544 10,616 10,591 10,543 10,502 10,450 10,386 4,776 6,597 11,524 13,193 13,664 14,206 14,500 14,710 14,997 Mortgage transactions (during period) 3,606 4,780 12,303 1,291 883 1,023 739 602 646 18 Sales 86 67 5 0 0 0 0 0 0 Mortgage commitments8 6,247 9,729 18,960 565 1,075 1,400 634 354 593 3,398 4,698 9,201 6,573 6,656 6,862 6,476 5,912 5,692 Auction of 4-month commitments to buy Government-underwritten loans 21 Offered? 4,929.8 7,974.1 12,978 508.4 1,322.7 426.3 219.9 133.2 162.3 2,787.2 4,846.2 6,747.2 284.4 638.5 185.0 99.9 69.6 82.7 Conventional loans 23 Offered® 2,595.7 5,675.2 9,933.0 144.9 661.9 458.6 357.5 93.5 245.9 1,879.2 3,917.8 5,110.9 113.5 363.6 214.3 195.3 69.9 184.1 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)10 25 Total 44,,226699 33,,227766 3,064 33,,551100 33,,337777 33,,331100 33,,333344 3,487 3,568 26 FHA/VA 1,618 1,395 1,243 1,260 1,198 1,186 1,171 1,156 1,145 2,651 1,881 1,822 2,250 2,180 2,124 2,163 2,331 2,423 Mortgage transactions (during period) 28 Purchases 1,175 3,900 6,524 350 358 560 447 518 636 29 Sales 1,396 4,131 6,211 116 364 572 382 321 554 Mortgage commitments11 30 Contracted (during period) 1,477 5,546 7,451 547 540 652 528 528 655 333 1,063 1,410 1,342 1,487 1,541 1,590 1,572 1,536 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 mort- 2. Includes all fees, commissions, discounts, and "points" paid (by the gage servicing) on accepted bids in Federal National Mortgage Associaborrower or the seller) in order to obtain a loan. tion's auctions of 4-month commitments to purchase home mortgages, 3. Average effective interest rates on loans closed, assuming prepay- assuming prepayment in 12 years for 30-year mortgages. No adjustments ment at the end of 10 years. are made for FNMA commitment fees or stock related requirements. 4. Average contract rates on new commitments for conventional first Monthly figures are unweighted averages for auctions conducted within mortgages, rounded to the nearest 5 basis points; from Department of the month. Housing and Urban Development. 8. Includes some multifamily and nonprofit hospital loan commit- 5. Average gross yields on 30-year, minimum-downpayment, Federal ments in addition to 1- to 4-family loan commitments accepted in FNMA's Housing Administration insured first mortgages for immediate delivery free market auction system, and through the FNMA-GNMA tandem in the private secondary market. Any gaps in data are due to periods of plans. adjustment to changes in maximum permissible contract rates. 9. Mortgage amounts offered by bidders are total bids received. 6. Average net yields to investors on Government National Mortgage 10. Includes participation as well as whole loans. Association guaranteed, mortgage-backed, fully modified pass-through 11. Includes conventional and government-underwritten loans. 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 11997755 11997766 11997777 11997788 Q3 Q4 Qir Q2 1 All holders 801,537 889,327 1,023,505 1,172,502 1,133,699 1,172,502 1,205,290 1,249,743 2 1- to 4-family 490,761 556,557 656,566 761,905 734,740 761,905 784,299 814,976 3 Multifamily 100,601 104,516 111,841 122,004 119,442 122,004 124,003 125,984 4 Commercial 159,298 171,223 189,274 212,597 205,744 212,597 217,563 224,526 5 Farm 50,877 57,031 65,824 75,996 73,773 75,996 79,425 84,257 6 Major financial institutions 581,193 647,650 745,011 847,910 822,184 847,910 866,036 894,471 7 Commercial banks1 136,186 151,326 178,979 213,963 205,445 213,963 220,063 229,564 8 1- to 4-family 77,018 86,234 105,115 126,966 121,911 126,966 130,585 136,223 9 Multifamily 5,915 8,082 9,215 10,912 10,478 10,912 11,223 11,708 10 Commercial 46,882 50,289 56,898 67,056 64,386 67,056 68,968 71,945 11 Farm 6,371 6,721 7,751 9,029 8,670 9,029 9,287 9,688 12 Mutual savings banks 77,249 81,639 88,104 95,157 93,403 95,157 96,136 97,155 13 1- to 4-family 50,025 53,089 57,637 62,252 61,104 62,252 62,892 63,559 14 Multifamily 13,792 14,177 15,304 16,529 16,224 16,529 16,699 16,876 15 Commercial 13,373 14,313 15,110 16,319 16,019 16,319 16,488 16,663 16 Farm 59 60 53 57 56 57 57 58 17 Savings and loan associations 278,590 323,130 381,163 432,858 420,971 432,858 441,420 456,629 18 1- to 4-family 223,903 260,895 310,686 356,156 345,617 356,156 363,774 377,587 19 Multifamily 25,547 28,436 32,513 36,057 35,362 36,057 36,682 37,078 20 Commercial 29,140 33,799 37,964 40,645 39,992 40,645 40,964 41,964 21 Life insurance companies 89,168 91,555 96,765 105,932 102,365 105,932 108,417 111,123 22 1- to 4-family 17,590 16,088 14,727 14,449 14,189 14,449 14,507 14,489 23 Multifamily 19,629 19,178 18,807 19,026 18,803 19,026 19,080 19,102 24 Commercial 45,196 48,864 54,388 62,086 59,268 62,086 63,908 66,055 25 Farm 6,753 7,425 8,843 10,371 10,105 10,371 10,922 11,477 26 Federal and related agencies 66,891 66,753 70,006 81,853 78,672 81,853 86,689 90,095 27 Government National Mortgage Assn. 7,438 4,241 3,660 3,509 3,560 3,509 3,448 3,425 28 1- to 4-family 4,728 1,970 1,548 877 897 877 821 800 29 Multifamily 2,710 2,271 2,112 2,632 2,663 2,632 2,627 2,625 30 Farmers Home Administration 1,109 1,064 1,353 926 1,384 926 956 1,200 31 1- to 4-family 208 454 626 288 460 288 302 363 32 Multifamily 215 218 275 320 240 320 180 75 33 Commercial 190 72 149 101 251 101 283 278 34 Farm 496 320 303 217 433 217 191 484 35 Federal Housing and Veterans Admin. 4,970 5,150 5,212 5,419 5,295 5,419 5,522 5,597 36 1- to 4-family 1,990 1,676 1,627 1,641 1,565 1,641 1,693 1,744 37 Multifamily 2,980 3,474 3,585 3,778 3,730 3,778 3,829 3,853 38 Federal National Mortgage Association 31,824 32,904 34,369 43,311 41,189 43,311 46,410 48,206 39 1- to 4-family 25,813 26,934 28,504 37,579 35,437 37,579 40,702 42,543 40 Multifamily 6,011 5,970 5,865 5,732 5,752 5,732 5,708 5,663 41 Federal Land Banks 16,563 19,125 22,136 25,624 24,758 25,624 26,893 28,459 42 1- to 4-family 549 601 670 927 819 927 1,042 1,198 43 Farm 16,014 18,524 21,466 24,697 23,939 24,697 25,851 27,261 44 Federal Home Loan Mortgage Corp... 4,987 4,269 3,276 3,064 2,486 3,064 3,460 3,208 45 1- to 4-family 4,588 3,889 2,738 2,407 1,994 2,407 2,685 2,489 46 Multifamily 399 380 538 657 492 657 775 719 47 Mortgage pools or trusts2 34,138 49,801 70,289 88,633 82,730 88,633 94,551 100,599 48 Government National Mortgage Assn. 18,257 30,572 44,896 24,347 50,844 54,347 57,955 61,340 49 1-to 4-family 17,538 29,583 43,555 52,732 49,276 52,732 56,269 59,586 50 Multifamily 719 989 1,341 1,615 1,568 1,615 1,686 1,754 51 Federal Home Loan Mortgage Corp... 1,598 2,671 6,610 11,892 10,511 11,892 12,467 13,708 52 1- to 4-family 1,349 2,282 5,621 9,657 8,616 9,657 10,088 11,096 53 Multifamily 249 389 989 2,235 1,895 2,235 2,379 2,612 54 Farmers Home Administration 14,283 16,558 18,783 22,394 21,375 22,394 24,129 25,551 55 1-to 4-family 9,194 10,219 11,379 13,400 12,851 13,400 13,883 14,329 56 Multifamily 295 532 759 1,116 1,116 1,116 1,465 1,764 57 Commercial 1,948 2,440 2,945 3,560 3,369 3,560 3,660 3,833 58 Farm 2,846 3,367 3,682 4,318 4,039 4,318 5,121 5,625 59 Individuals and others 3 119,315 125,123 138,199 154,106 150,113 154,106 158,014 164,578 60 1- to 4-family 56,268 62,643 72,115 82,574 80,004 82,574 85,056 88,970 61 Multifamily 22,140 20,420 20,538 21,395 21,119 21,395 21,670 22,155 62 Commercial 22,569 21,446 21,820 212,830 22,459 22,830 23,292 23,789 63 Farm 18,338 20,614 23,726 27,307 26,531 27,307 27,996 29,664 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 Departsured 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. Multinoninsured 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 Nonfinancial Statistics • October 1979 1.57 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change Millions of dollars 1979 Holder, and type of credit 1976 1977 1978 Feb. Mar. Apr. May June July Aug. Amounts outstanding (end of period) 1 Total. 193,977 230,829 275,629 276,019 278,453 282,575 287,315 291,856 295,052 299,813 By major holder 2 Commercial banks.... 93,728 112,373 136,189 136,671 137,445 139,843 142,102 144,035 145,169 147,312 3 Finance companies 38,919 44,868 54,298 55,929 56,991 58,334 59,635 60,996 62,463 63,362 4 Credit unions 31,169 37,605 45,939 45,661 46,301 46,322 46,832 47,478 47,772 48,631 5 Retailers2 19,260 23,490 24,876 23,246 22,929 23,097 23,421 23,672 23,713 24,114 6 Savings and loans 6,246 7,354 8,394 8,488 8,671 8,833 9,066 9,290 9,425 9,760 7 Gasoline companies... 2,830 2,963 3,240 3,274 3,292 3,383 3,537 3,704 3,872 4,048 8 Mutual savings banks.. 1,825 2,176 2,693 2,750 2,824 2,763 2,722 2,681 2,638 2,586 By major type of credit 9 Automobile 67,707 82,911 102,468 103,780 105,426 107,186 109,211 110,930 111,952 113,351 10 Commercial banks.. 39,621 49,577 60,564 61,053 61,742 62,866 63,891 64,480 64,826 65,389 11 Indirect paper 22,072 27,379 33,850 34,261 34,592 35,322 35,917 36,251 36,475 36,887 12 Direct loans 17,549 22,198 26,714 26,792 27,150 27,544 27,974 28,229 28,351 28,502 13 Credit unions 15,238 18,099 21,967 21,834 22,140 22,150 22,394 22,703 22,844 23,255 14 Finance companies.. 12,848 15,235 19,937 20,893 21,544 22,170 22,926 23,747 24,282 24,707 15 Revolving 17,189 3399,,227744 4477,,005511 4455,,558866 4455,,224400 4455,,778811 4466,,448899 4477,,445588 4477,,889944 4499,,227700 16 Commercial banks. . 14,359 1188,,337744 2244,,443344 2244,,550022 2244,,444422 2244,,776677 2255,,005544 2255,,665522 2255,,992277 2266,,778822 17 Retailers 1177,,993377 1199,,337777 1177,,881100 1177,,550066 1177,,663311 1177,,889988 1188,,110022 1188,,009955 1188,,444400 18 Gasoline companies. 2,830 22,,996633 33,,224400 33,,227744 33,,229922 33,,338833 33,,553377 33,,770044 33,,887722 44,,004488 19 Mobile home 14.573 15,141 16,042 16,008 16,092 16,198 16,453 16,607 16,719 16,972 20 Commercial banks. 8,737 9,124 9,553 9,495 9,509 9,549 9,702 9,759 9,801 9,912 21 Finance companies. 3,263 3,077 3,152 3,147 3,148 3,159 3,177 3,191 3,212 3,231 22 Savings and loans.. 2,241 2,538 2,848 2,880 2,942 2,997 3,076 3,152 3,198 3,312 23 Credit unions 332 402 489 486 493 493 498 505 508 517 24 Other 94,508 93,503 110,068 110,645 111,695 113,410 115,162 116,861 118,487 120,220 25 Commercial banks 31,011 35,298 41,638 41,621 41,752 42,661 43,455 44,144 44,615 45,229 26 Finance companies 22,808 26,556 31,209 31,889 32,299 33,005 33,532 34,058 34,969 35,424 27 Credit unions 15,599 19,104 23,483 23,341 23,668 23,679 23,940 24,270 24,420 24,859 28 Retailers 19,260 5,553 5,499 5,436 5,423 5,466 5,523 5,570 5,618 5,674 29 Savings and loans 4,005 4,816 5,546 5,608 5,729 5,836 5,990 6,138 6,227 6,448 30 Mutual savings banks. 1,825 2,176 2,693 2,750 2,824 2,763 2,722 2,681 2,638 2,586 Net change (during period) 3 31 Total 21,647 35,278 44,810 3,563 3,625 4,105 3,306 2,558 2,443 2,446 By major holder 32 Commercial banks 10,792 18,645 23,813 1,630 1,465 2,117 1,665 984 662 866 33 Finance companies 2,946 5,948 9,430 1 ,460 1,228 1,378 893 913 1,185 549 34 Credit unions 5,503 6,436 8,334 402 528 139 124 144 342 391 35 Retailers i 1,059 2,654 1,386 -221 143 306 283 288 180 332 36 Savings and loans 1,085 1,111 1,041 86 173 158 280 240 120 253 37 Gasoline companies... 124 132 276 68 20 73 96 39 2 116 38 Mutual savings banks.. 138 352 530 138 68 -66 -35 -50 -48 -61 By major type of credit 39 Automobile 10,465 15,204 19,557 1,565 1,486 ,387 1,225 690 616 594 40 Commercial banks.. 6,334 9,956 10,987 739 617 740 633 123 72 172 41 Indirect paper.... 2,742 5,307 6,471 530 290 482 389 87 51 188 42 Direct loans 3,592 4,649 4,516 209 327 258 244 36 21 -16 43 Credit unions 2,497 2,861 3,868 190 245 64 60 45 183 177 44 Finance companies.. 1,634 2,387 4,702 636 624 583 532 522 361 245 45 Revolving 2,170 6,248 7,776 317 742 918 749 796 429 787 46 Commercial banks.. 2,046 4,015 6,060 492 588 605 418 494 303 365 47 Retailers 2,101 1,440 -243 134 240 235 263 124 306 48 Gasoline companies. 124 132 276 68 20 73 96 39 2 116 49 Mobile home 140 565 897 56 108 82 234 102 72 182 50 Commercial banks. 70 387 426 15 31 21 125 12 17 59 51 Finance companies. -182 -189 74 9 11 6 13 14 11 13 52 Savings and loans.. 192 297 310 28 59 56 94 74 41 106 53 Credit unions 60 70 87 4 7 2 2 3 4 54 Other 8,872 13,261 16,580 1,625 1,289 1,718 1,098 970 1,326 883 55 Commercial banks 2,342 4,287 6,340 384 229 751 489 355 270 270 56 Finance companies 1,494 3,750 4,654 815 593 789 348 377 813 291 57 Credit unions 2,946 3,505 4,379 208 276 76 62 97 156 210 58 Retailers 1,059 553 -54 22 9 66 48 25 56 26 59 Savings and loans 893 814 731 58 114 102 186 166 79 147 60 Mutual savings banks. 138 352 530 138 68 -66 -35 -50 -48 -61 1. The Board's series cover most short- and intermediate-term credit NOTE. Total consumer noninstallment credit outstanding—credit extended to individuals through regular business channels, usually to scheduled to be repaid in a lump sum, including single-payment loans, finance the purchase of consumer goods and services or to refinance charge accounts, and service credit—amounted to $64.3 billion at the end debts incurred for such purposes, and scheduled to be repaid (or with of 1978, $58.6 billion at the end of 1977, $54.8 billion at the end of 1976 the option of 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 1979 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11997766 11997777 11997788 Feb. Mar. Apr. May June July Aug. Extensions2 1 Total 211,028 254,071 298,351 26,452 26,533 27,009 27,901 26,139 26,848 27,583 By major holder 2 Commercial banks 97,397 117,896 142,720 12,430 12,412 13,111 13,400 12,278 12,292 12,700 3 Finance companies 36,129 41,989 50,505 5,072 4,958 5,239 5,186 4,641 5,353 5,133 4 Credit unions 29,259 34,028 40,023 3,238 3,250 2,753 3,124 2,986 3,282 3,361 5 Retailers i 29,447 39,133 41,619 3,460 3,611 3,742 3,721 3,853 3,687 3,921 6 Savings and loans 3,898 4,485 5,050 468 583 559 723 682 592 728 7 Gasoline companies 13,387 14,617 16,125 1,486 1,493 1,505 1,613 1,589 1,525 1,640 8 Mutual savings banks 1,511 1,923 2,309 298 226 100 134 110 117 100 By major type of credit 9 Automobile 63,743 75,641 88,987 77,,775566 77,,779944 77,,999999 88,,226600 77,,117788 77,,444477 7,667 10 Commercial banks 37,886 46,363 53,028 4,430 4,424 4,707 4,680 3,952 3,936 4,085 11 Indirect paper 20,576 25,149 29,336 2,472 2,449 2,635 2,684 2,146 2,151 2,276 12 Direct loans 17,310 21,214 23,692 1,958 1,975 2,072 1,996 1,806 1,785 1,809 13 Credit unions 14,688 16,616 19,486 1,624 1,587 1,415 1,566 1,485 1,611 1,661 14 Finance companies 11,169 12,662 16,473 1,702 1,783 1,877 2,014 1,741 1,900 1,921 15 Revolving 43,934 86,756 104,587 9,357 9,714 9,722 10,039 10,136 9,856 10,371 16 Commercial banks 3300,,554477 38,256 51,531 4,860 5,024 4,923 5,154 5,166 5,078 5,280 17 Retailers 33,883 36,931 3,011 3,197 3,294 3,272 3,381 3,253 3,451 18 Gasoline companies 13,387 14,617 16,125 1,486 1,493 1,505 1,613 1,589 1,525 1,640 19 Mobile home 4,859 5,425 6,067 454 518 510 668 547 519 655 20 Commercial banks 3,064 3,466 3,704 295 296 304 411 304 297 362 21 Finance companies 702 643 886 60 63 59 58 59 71 67 22 Savings and loans 929 1,120 1,239 81 139 134 182 167 133 206 23 Credit unions 164 196 238 18 20 13 17 17 18 20 24 Other 98,492 86,249 98,710 8,885 8,507 8,778 8,934 8,278 9,026 8,890 25 Commercial banks 25,900 29,811 34,457 2,845 2,668 3,177 3,155 2,856 2,981 2,973 26 Finance companies 24,258 28,684 33,146 3,310 3,112 3,303 3,114 2,841 3,382 3,145 27 Credit unions 14,407 17,216 20,299 1,596 1,643 1,325 1,541 1,484 1,653 1,680 28 Retailers 29,447 5,250 4,688 449 414 448 449 472 434 470 29 Savings and loans 2,969 3,365 3,811 387 444 425 541 515 459 522 30 Mutual savings banks 1,511 1,923 2,309 298 226 100 134 110 117 100 Liquidations 2 31 Total 189,381 218,793 253,541 22,889 22,908 22,904 24,595 23,581 24,405 25,137 By major holder 32 Commercial banks 86,605 99,251 118,907 10,800 10,947 10,994 11,735 11,294 11,630 11,834 33 Finance companies 33,183 36,041 41,075 3,612 3,730 3,861 4,293 3,728 4,168 4,584 34 Credit unions 23,756 27,592 31,689 2,836 2,722 2,614 3,000 2,842 2,940 2,970 35 Retailers i 28,388 36,479 40,233 3,681 3,468 3,436 3,438 3,565 3,507 3,589 36 Savings and loans 2,813 3,374 4,009 382 410 401 443 442 472 475 37 Gasoline companies 13,263 14,485 15,849 1,418 1,473 1,432 1,517 1,550 1,523 1,524 38 Mutual savings banks 1,373 1,571 1,779 160 158 166 169 160 165 161 By major type of credit 39 Automobile 53,278 60,437 69,430 6,191 6,308 6,612 7,035 6,488 6,831 7,073 40 Commercial banks 31,552 36,407 42,041 3,691 3,807 3,967 4,047 3,829 3,864 3,913 41 Indirect paper 17,834 19,842 22,865 1,942 2,159 2,153 2,295 2,059 2,100 2,088 42 Direct loans 13,718 16,565 19,176 1,749 1,648 1,814 1,752 1,770 1,764 1,825 43 Credit unions 12,191 13,755 15,618 1,434 1,342 1,351 1,506 1,440 1,428 1,484 44 Finance companies 9,535 10,275 11,771 1,066 1,159 1,294 1,482 1,219 1,539 1,676 45 Revolving 41,764 80,508 96,811 9,040 8,972 8,804 9,290 9,340 9,427 9,584 46 Commercial banks 2288,,550011 34,241 45,471 4,368 4,436 4,318 4,736 4,672 4,775 4,915 47 Retailers 31,782 35,491 3,254 3,063 3,054 3,037 3,118 3,129 3,145 48 Gasoline companies 13,263 14,485 15,849 1,418 1,473 1,432 1,517 1,550 1,523 1,524 49 Mobile home 4,719 4,860 5,170 398 410 428 434 445 447 473 50 Commercial banks 2,994 3,079 3,278 280 265 283 286 292 280 303 51 Finance companies 884 832 812 51 52 53 45 45 60 54 52 Savings and loans 737 823 929 53 80 78 88 93 92 100 53 Credit unions 104 126 151 14 13 14 15 15 15 16 54 Other 89,620 72,988 82,130 7,260 7,218 7,060 7,836 7,308 7,700 8,007 55 Commercial banks 23,558 25,524 28,117 2,461 2,439 2,426 2,666 2,501 2,711 2,703 56 Finance companies 22,764 24,934 28,492 2,495 2,519 2,514 2,766 2,464 2,569 2,854 57 Credit unions 11,461 13,711 15,920 1,388 1,367 1,249 1,479 1,387 1,497 1,470 58 Retailers 28,388 4,697 4,742 427 405 382 401 447 378 444 59 Savings and loans 2,076 2,551 3,080 329 330 323 355 349 380 375 60 Mutual savings banks 1,373 1,571 1,779 160 158 166 169 160 165 161 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 NonfinancialS tatistics • October 1979 1.59 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1976 1977 1978 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 1973 1974 1975 1976 1977 1978 HI H2 HI H2 HI H2 Nonfinancial sectors 1 203.1 191.3 210.8 271.9 338.5 400.3 270.6 273.2 298.4 378.7 383.9 416.8 2 Excluding equities 195.4 187.4 200.7 261.1 335.4 398.2 257.0 265.2 297.2 373.6 386.5 410.0 By sector and instrument 8.3 11.8 85.4 69.0 56.8 53.7 79.4 58.7 46.3 67.2 61.4 46.0 7.9 12.0 85.8 69.1 57.6 55.1 79.3 59.0 46.9 68.4 62.4 47.9 .4 -.2 -.4 -.1 -.9 -1.4 . 1 -.3 -.6 -1.2 -.9 -1.9 194.9 179.5 125.4 202.9 281.8 346.6 191.2 214.6 252.0 311.5 322.5 370.8 7.7 3.8 10.1 10.8 3.1 2.1 13.6 8.1 1.2 5.1 -2.6 6.8 8 Debt instruments 187.2 175.6 115.3 192.0 278.6 344.5 177.6 206.5 250.9 306.4 325.1 364.0 99 Private domestic nonfinancial sectors. .. . 188.8 164.1 112.1 182.0 267.9 314.4 170.6 193.5 241.3 294.4 301.7 327.0 1100 Corporate equities 7.9 4.1 9.9 10.5 2.7 2.6 13.3 7.7 .5 4.9 -1.8 7.0 1111 Debt instruments 180.9 160.0 102.1 171.5 265.1 311.8 157.2 185.8 240.8 289.5 303.5 320.0 12 Debt capital instruments 105.1 98.0 98.4 123.5 175.6 196.6 119.9 127.2 159.3 192.0 187.8 205.3 13 State and local obligations 14.7 16.5 16.1 15.7 23.7 28.3 20.1 11.3 22.0 25.3 27.8 28.7 14 Corporate bonds 9.2 19.7 27.2 22.8 21.0 20.1 22.3 23.4 16.6 25.4 20.5 19.8 Mortgages 15 Home 46.4 34.8 39.5 63.7 96.4 104.5 57.7 69.7 90.5 102.3 99.8 109.2 16 Multifamily residential 10.4 6.9 * 1.8 7.4 10.2 .6 3.1 6.4 8.4 9.3 11.2 17 Commercial 18.9 15.1 11.0 13.4 18.4 23.3 14.3 12.5 14.8 21.9 21.2 25.4 18 Farm 5.5 5.0 4.6 6.1 8.8 10.2 5.0 7.3 9.0 8.7 9.3 11.1 19 Other debt instruments 75.8 62.0 3.8 48.0 89.5 115.2 37.3 58.6 81.5 97.5 115.7 114.7 20 Consumer credit 26.0 9.9 9.7 25.6 40.6 50.6 23.6 27.6 36.6 44.5 50.1 51.0 21 Bank loans n.e.c 37.1 31.7 -12.3 4.0 27.0 37.3 -3.7 11.6 26.2 27.8 42.5 32.0 22 Open market paper 2.5 6.6 -2.6 4.0 2.9 5.2 5.7 2.3 3.4 2.4 5.3 5.1 23 Other 10.3 13.7 9.0 14.4 19.0 22.2 11.7 17.1 15.3 22.8 17.8 26.6 24 By borrowing sector 188.8 164.1 112.1 182.0 267.9 314.4 170.6 193.5 241.3 294.4 301.7 327.0 25 State and local governments 13.2 15.5 13.7 15.2 20.4 23.6 18.4 12.1 15.4 25.3 21.0 26.1 26 Households 80.1 51.2 49.5 90.7 139.9 162.6 82.9 98.5 130.0 149.9 156.2 169.0 27 Farm 9.6 8.0 8.8 10.9 14.7 18.1 10.1 11.7 16.3 13.2 15.2 20.9 28 Nonfarm noncorporate 13.0 7.7 2.0 5.4 12.5 15.7 3.4 7.5 12.6 12.5 16.8 14.5 29 Corporate 73.0 81.7 38.1 59.8 80.3 94.5 55.8 63.7 67.0 93.5 92.4 96.6 30 Foreign 6.1 15.4 13.3 20.8 13.9 32.3 20.7 21.0 10.7 17.1 20.8 43.8 31 Corporate equities -.2 -.2 .2 .3 .4 -.5 .3 .3 .6 .2 -.8 -.2 32 Debt instruments 6.3 15.7 13.2 20.5 13.5 32.8 20.4 20.7 10.1 16.9 21.6 44.0 33 Bonds 1.0 2.1 6.2 8.6 5.1 4.0 7.4 9.7 4.4 5.7 5.0 3.0 34 Bank loans n.e.c 2.7 4.7 3.9 6.8 3.1 18.3 8.5 5.0 6.3 9.4 27.1 35 Open market paper .9 7.3 .3 1.9 2.4 6.6 1.5 2.4 2.1 2.2 3.6 9.6 3366 U.S. government loans 1.7 11..66 22..88 33..33 33..00 3.9 22..99 3.6 33..11 22..99 33..66 44..22 Financial sectors 37 Total funds raised 44.8 39.2 12.7 24.1 54.0 81.4 18.2 29.9 45.9 62.1 80.7 82.1 By instrument 38 U.S. government related 19.9 23.1 13.5 18.6 26.3 41.4 16.5 20.7 22.6 29.9 38.5 44.3 39 Sponsored credit agency securities 16.3 16.6 2.3 3.3 7.0 23.1 2.4 4.3 7.1 6.8 21.9 24.3 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. government 0 .7 .9 -.4 -1.2 0 * -.7 -2.3 0 0 0 42 Private financial sectors 24.9 16.2 -.8 5.5 27.7 40.0 1.7 9.3 23.2 32.2 42.2 37.8 43 Corporate equities 1.5 .3 .6 1.0 .9 1.7 -.2 2.3 .9 .8 2.2 1.1 44 Debt instruments 23.4 15.9 -1.4 4.4 26.9 38.3 1.9 7.0 22.3 31.4 40.0 36.7 45 Corporate bonds 3.5 2.1 2.9 5.8 10.1 7.5 6.0 5.7 9.5 10.7 8.5 6.4 46 Mortgages -1.2 -1.3 2.3 2.1 3.1 .9 1.4 2.8 3.1 3.0 2.1 -.3 47 Bank loans n.e.c 9.0 4.6 -3.7 -3.7 -.3 2.8 -2.5 -4.9 -2.3 1.8 2.6 3.1 48 Open market paper and RPs 4.9 3.8 1.1 2.2 9.6 14.6 -1.0 5.4 9.2 10.1 13.5 15.7 49 Loans from FHLBs 7.2 6.7 -4.0 -2.0 4.3 12.5 -1.9 -2.0 2.9 5.8 13.2 11.8 By sector 50 Sponsored credit agencies 16.3 17.3 3.2 2.9 5.8 23.1 2.3 3.5 4.7 6.8 21.9 24.3 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 24.9 16.2 -.8 5.5 27.7 40.0 1.7 9.3 23.2 32.2 42.2 37.8 1.2 1.2 1.2 2.3 1.1 1.3 2.4 2.1 .8 1.5 1.5 1.1 54 Bank affiliates 2.2 3.5 .3 -.8 1.3 6.7 -1.3 -.3 1.3 1.2 5.8 7.6 55 Savings and loan associations 6.0 4.8 -2.3 .1 9.9 14.3 -.3 .4 8.2 11.7 16.4 12.2 56 Other insurance companies .5 .9 1.0 .9 .9 1.1 .9 .9 .9 1.0 1.0 1.1 9.5 6.0 .5 6.4 17.6 18.6 4.4 8.5 15.0 20.2 18.9 18.2 58 REITs 6.5 .6 -1.4 -2.4 -2.2 -1.0 -2.1 -2.7 -2.4 -2.0 -1.0 -1.0 59 Open-end investment companies -1.2 -.7 -.1 -1.0 -.9 -1.0 -2.4 .4 -.6 -1.3 -.5 -1.5 All sectors 60 Total funds raised, by instrument 248.0 230.5 223.5 296.0 392.5 481.7 288.8 303.2 344.3 440.8 464.6 498.9 61 Investment company shares -1.2 -.7 —. l -1.0 -.9 -1.0 -2.4 .4 -.6 -1.3 -.5 -1.5 62 Other corporate equities 10.4 4.8 10.8 12.9 4.9 4.7 15.8 9.9 2.6 7.2 . l 9.4 63 Debt instruments 238.8 226.4 212.8 284.1 388.5 478.0 275.4 292.8 342.2 434.9 465.0 491.0 64 U.S. government securities 28.3 34.3 98.2 88.1 84.3 95.2 96.0 80.2 71.4 97.2 100.0 90.4 65 State and local obligations 14.7 16.5 16.1 15.7 23.7 28.3 20.1 11.3 22.0 25.3 27.8 28.7 66 Corporate and foreign bonds 13.6 23.9 36.4 37.2 36.1 31.6 35.7 38.7 30.6 41.7 34.0 29.2 67 Mortgages 79.9 60.5 57.2 87.1 * 134.0 149.0 78.8 95.3 123.7 144.2 141.6 156.4 68 Consumer credit 26.0 9.9 9.7 25.6 40.6 50.6 23.6 27.6 36.6 44.5 50.1 51.0 69 Bank loans n.e.c 48.8 41.0 -12.2 7.0 29.8 58.4 2.3 11.7 23.7 35.8 54.5 62.2 70 Open market paper and RPs 8.3 17.7 -1.2 8.1 15.0 26.4 6.2 10.1 15.3 14.6 22.4 30.4 71 Other loans 19.1 22.7 8.7 15.3 25.2 38.6 12.6 18.0 18.9 31.4 34.6 42.6 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 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997733 11997744 11997755 11997766 11997777 11997788 HI H2 HI H2 HI H2 1 Total funds advanced in credit markets to nonfinancial sectors 195.4 187.4 200.7 261.1 335.4 398.2 257.0 265.2 297.2 373.6 386.5 410.0 By public agencies and foreign 2 Total net advances 31.8 53.7 44.6 54.3 85.1 109.7 46.0 62.5 61.8 108.4 102.4 116.9 3 U.S. government securities 9.5 11.9 22.5 26.8 40.2 43.9 21.4 32.2 23.9 56.5 43.6 44.1 4 Residential mortgages 8.2 14.7 16.2 12.8 20.4 26.5 10.7 14.9 18.4 22.5 22.2 30.7 5 FHLB advances to S&Ls 7.2 6.7 -4.0 -2.0 4.3 12.5 -1.9 -2.0 2.9 5.8 13.2 11.8 6 Other loans and securities 6.9 20.5 9.8 16.6 20.2 26.9 15.8 17.5 16.7 23.7 23.4 30.3 Totals advanced, by sector 2.8 9.8 15.1 8.9 11.8 20.4 5.8 12.0 5.4 18.3 19.4 21.5 8 Sponsored credit agencies 19.1 26.5 14.8 20.3 26.8 44.6 18.5 22.2 21.6 32.0 39.4 49.8 9 Monetary authorities 9.2 6.2 8.5 9.8 7.1 7.0 12.0 7.7 8.2 6.1 13.3 .6 10 Foreign .6 11.2 6.1 15.2 39.4 37.7 9.8 20.6 26.6 52.1 30.4 45.1 11 Agency borrowing not included in line 1.. 19.9 23.1 13.5 18.6 26.3 41.4 16.5 20.7 22.6 29.9 38.5 44.3 Private domestic funds advanced 12 Total net advances 183.6 156.8 169.7 225.4 276.5 330.0 227.5 223.3 258.0 295.1 322.5 337.4 13 U.S. government securities 18.8 22.4 75.7 61.3 44.1 51.3 74.6 48.0 47.6 40.7 56.4 46.3 14 State and local obligations 14.7 16.5 16.1 15.7 23.7 28.3 20.1 11.3 22.0 25.3 27.8 28.7 15 Corporate and foreign bonds 10.0 20.9 32.8 30.5 22.5 22.5 28.8 32.3 18.0 27.0 23.9 21.1 16 Residential mortgages 48.4 26.9 23.2 52.7 83.3 88.2 47.5 57.8 78.4 88.1 86.8 89.6 17 Other mortgages and loans 98.8 76.8 17.9 63.3 107.3 152.2 54.6 72.0 94.9 119.7 140.8 163.5 18 LESS : FHLB advances 7.2 6.7 -4.0 -2.0 4.3 12.5 -1.9 -2.0 2.9 5.8 13.2 11.8 Private financial intermediation 19 Credit market funds advanced by private financial institutions 161.3 125.5 122.5 190.3 255.9 296.9 176.9 203.8 242.4 269.3 301.0 292.8 20 Commercial banking 84.6 66.6 29.4 59.6 87.6 128.7 47.8 71.5 79.1 96.1 131.8 125.7 21 Savings institutions 35.1 24.2 53.5 70.8 82.0 75.9 72.8 68.8 82.5 81.5 75.8 75.9 22 Insurance and pension funds 23.7 29.8 40.6 49.9 67.9 73.5 51.8 47.9 65.2 70.6 76.9 70.2 23 Other finance 17.9 4.8 -1.0 10.0 18.4 18.7 4.6 15.5 15.7 21.1 16.6 20.9 24 Sources of funds 161.3 125.5 122.5 190.3 255.9 296.9 176.9 203.8 242.4 269.3 301.0 292.8 25 Private domestic deposits 97.3 67.5 92.0 124.6 141.2 142.5 118.2 131.0 141.4 141.1 138.6 146.4 26 Credit market borrowing 23.4 15.9 -1.4 4.4 26.9 38.3 1.9 7.0 22.3 31.4 40.0 36.7 27 Other sources 40.6 42.1 32.0 61.3 87.8 116.0 56.8 65.8 78.7 96.9 122.5 109.6 28 Foreign funds 3.0 10.3 -8.7 -4.6 1.2 6.3 -6.3 -2.8 1.6 .8 5.7 6.9 29 Treasury balances -1.0 -5.1 -1.7 —. 1 4.3 6.8 4.1 -4.3 1.2 7.4 2.0 11.6 30 Insurance and pension reserves 18.4 26.2 29.7 34.5 49.4 62.7 35.8 33.2 45.3 53.4 66.2 59.2 31 Other, net 20.2 10.6 12.7 31.4 32.9 40.3 23.2 39.7 30.7 35.2 48.6 32.0 Private domestic nonfinancial investors 32 Direct lending in credit markets 45.7 47.2 45.8 39.5 47.5 7711..44 5522..55 26.6 37.9 5577..11 6611..55 8811..33 33 U.S. government securities 18.8 18.9 24.1 16.1 23.0 33.2 26.7 5.6 18.3 27.8 32.4 34.1 34 State and local obligations 5.4 9.3 8.4 3.8 2.6 4.5 8.7 -1.0 -.9 6.0 7.1 2.0 35 Corporate and foreign bonds 2.0 5.1 8.4 5.8 -3.3 -1.4 4.5 7.1 -.7 -5.9 -3.9 1.2 36 Commercial paper 9.8 5.8 -1.3 1.9 9.5 16.3 1.9 1.9 8.0 11.0 8.5 24.1 37 Other 9.7 8.0 6.2 11.8 15.7 18.7 10.7 13.0 13.2 18.2 17.5 20.0 38 Deposits and currency 101.2 73.8 98.1 131.9 149.5 151.8 124.3 139.5 147.2 151.8 149.0 154.6 39 Security RPs 11.0 -2.2 .2 2.3 2.2 7.5 1.5 3.2 4.3 .2 9.8 5.1 40 Money market fund shares 2.4 1.3 * .2 6.9 -.5 .5 -.5 .9 6.1 7.7 41 Time and savings accounts 75.7 65.4 84.0 113.5 121.0 115.2 105.3 121.6 117.6 124.4 110.8 119.6 42 Large negotiable CDs 17.8 18.4 -14.3 -13.6 9.0 10.8 -19.3 -7.8 -4.5 22.6 10.1 11.4 43 Other at commercial banks 29.5 25.3 38.8 57.9 43.0 43.3 57.3 58.6 51.4 34.6 42.3 44.4 44 At savings institutions 28.5 21.8 59.4 69.1 69.0 61.1 67.4 70.8 70.8 67.2 58.5 63.8 45 Money 14.5 8.2 12.6 16.1 26.1 22.2 18.0 14.2 25.8 26.4 22.2 22.1 46 Demand deposits 10.6 1.9 6.4 8.8 17.8 12.9 12.0 5.7 20.0 15.7 11.8 14.0 47 Currency 3.9 6.3 6.2 7.3 8.3 9.3 6.1 8.6 5.8 10.7 10.5 8.1 48 Total of credit market instruments, deposits and currency 146.9 121.0 143.9 171.4 197.0 223.2 176.8 166.1 185.2 208.9 210.5 223355..99 49 Public support rate (in percent) 16.3 28.7 22.2 20.8 25.4 27.5 17.9 23.6 20.8 29.0 26.5 28.5 50 Private financial intermediation (in percent) 87.9 80.0 72.2 84.4 92.5 90.0 77.8 91.2 94.0 91.3 93.3 86.8 51 Total foreign funds 3.6 21.5 -2.6 10.6 40.5 44.0 3.5 17.8 28.2 52.9 36.1 52.0 MEMO : Corporate equities not included above 52 Total net issues 9.2 4.1 10.7 11.9 4.0 3.7 13.4 10.3 2.1 5.9 -.4 7.9 53 Mutual fund shares -1.2 -.7 -.1 -1.0 -.9 -1.0 -2.4 .4 -.6 -1.3 -.5 -1.5 54 Other equities 10.4 4.8 10.8 12.9 4.9 4.7 15.8 9.9 2.6 7.2 .1 9.4 55 Acquisitions by financial institutions 13.1 5.8 9.6 12.3 7.4 7.6 12.7 11.8 6.8 8.1 .4 14.7 56 Other net purchases -3.9 -1.7 1.1 -.4 -3.4 -3.8 .7 -1.5 -4.7 -2.2 -.8 -6.8 NOTES BY LINE NUMBER. 29. Demand deposits at commercial banks. 1. Line 2 of p. A-44. 30. Excludes net investment of these reserves in corporate equities. 2. Sum of lines 3-6 or 7-10. 31. Mainly retained earnings and net miscellaneous liabilities. 6. Includes farm and commercial mortgages. 32. Line 12 less line 19 plus line 26. 11. Credit market funds raised by federally sponsored credit agencies, 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 and net issues of federally related mortgage pool securities. Included includes mortgages. below in lines 3, 13, and 33. 45. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 46. Lines 32 plus 38, or line 12 less line 27 plus line 45. Also sum of lines 27, 32, 39, and 44. 47. Line 2/line 1. 17. Includes farm and commercial mortgages. 48. Line 19/line 12. 25. Sum of lines 39 and 44. 49. Sum of lines 10 and 28. 26. Excludes equity issues and investment company shares. Includes 50. 52. Includes issues by financial institutions. line 18. NOTE. Full statements for sectors and transaction types quarterly, 28. Foreign deposits at commercial banks, bank borrowings from foreign and annually for flows and for amounts outstanding, may be obtained branches, and liabilities of foreign banking agencies to foreign af- from Flow of Funds Section, Division of Research and Statistics, Board filiates. of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • October 1979 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1979 Measure 1976 1977 1978 Feb. Mar. Apr. May June' July' Aug.' Sept. 1 Industrial production1 130.5 138.2 146.1 152.0 153.0 150.8 152.4 152.6 152.8 151.5 152.3 Market groupings 2 Products, total 129.7 137.9 144.8 149.9 150.8 148.4 150.3 150.2 149.9 148.6 149.7 3 Final, total 127.6 135.9 142.2 146.8 148.2 145.4 147.8 147.6 147.4 145.7 147.1 4 Consumer goods 137.1 145.3 149.1 151.5 152.9 149.1 152.0 151.8 151.1 148.4 149.9 5 Equipment 114.6 123.0 132.8 140.4 141.7 140.4 141.9 141.9 142.2 142.0 143.1 6 Intermediate 137.2 145.1 154.1 161.4 160.4 159.7 159.5 159.5 159.3 159.4 159.4 7 Materials 131.7 138.6 148.3 155.2 156.3 154.5 155.7 156.5 157.2 156.0 156.2 Industry groupings 8 Manufacturing 130.3 138.4 146.8 153.3 154.5 151.6 153.8 153.9 154.0 152.3 153.2 Capacity utilization (percent)1 •2 9 Manufacturing 79.5 81.9 84.4 86.7 87.1 85.3 86.3 86.2 86.0 84.8 85.1 10 Industrial materials industries 81.1 82.7 85.6 87.8 88.3 86.9 87.4 87.5 87.7 86.8 86.7 11 Construction contracts3 190.2 160.5 174.3 231.0 186.0 202.0 178.0 177.0 165.0 164.0 n.a. 12 Nonagricultural employment, total4 120.7 125.3 '131.4 '134.8 '135.3 '135.3 '135.9 136.2 136.3 136.3 136.5 13 Goods-producing, total 100.2 r104.5 '109.8 '113.5 '114.2 '114.0 '114.3 114.4 114.7 114.1 114.2 14 Manufacturing, total 97.7 ••101.2 '105.3 '108.1 '108.4 '108.3 '108.3 108.3 108.4 107.8 107.9 15 Manufacturing, production-worker 95.3 '98.8 '102.8 '105.7 '105.9 '105.8 '105.6 105.5 105.5 104.6 104.8 16 Service-producing 131.9 '136.7 '143.2 '146.5 '146.9 '147.0 '147.7 148.1 148.2 148.5 148.8 17 Personal income, totals 220.5 244.4 274.1 295.5 298.8 300.1 '301.9 304.0 308.0 309.3 n.a. 18 Wages and salary disbursements 208.2 230.2 258.1 278.0 281.2 282.1 '283.2 285.5 287.5 288.4 n.a. 19 Manufacturing 177.0 198.3 222.4 242.3 244.7 244.1 '244.8 245.9 247.5 246.2 n.a. 20 Disposable personal income 176.8 194.8 217.7 234.7 '239.1 n.a. 21 Retail sales 6 203.5 224.4 248.0 271.8 275.3 272.7 274.8 274.4 276.5 285.1 291.4 Prices? 22 Consumer 170.5 181.5 195.4 207.1 209.1 211.5 214.1 216.6 218.9 221.1 n.a. 23 Producer finished goods 170.3 180.6 194.6 207.7 209.1 211.4 212.4 213.4 215.8 217.3 n.a. 1. The industrial production and capacity utilization series have been 6. Based on Bureau of Census data published in Survey of Current revised. For a description of the changes see the August 1979 BULLETIN, Business (U.S. Department of Commerce). pp. 603-07. 7. Data without seasonal adjustment, as published in Monthly Labor 2. Ratios of indexes of production to indexes of capacity. Based on data Review (U.S. Department of Labor). Seasonally adjusted data for changes from Federal Reserve, McGraw-Hill Economics Department, and De- in the price indexes may be obtained from the Bureau of Labor Statistics, partment of Commerce. U.S. Department of Labor. 3. Index of dollar value of total construction contracts, including residential, nonresidential, and heavy engineering, from McGraw-Hill NOTE. Basic data (not index numbers) for series mentioned in notes Informations Systems Company, F. W. Dodge Division. 4, 5, and 6, and indexes for series mentioned in notes 3 and 7 may also be 4. Based on data in Employment and Earnings (U.S. Department of found in the Survey of Current Business (U.S. Department of Commerce). Labor). Series covers employees only, excluding personnel in the Armed Figures for industrial production for the last two months are preliminary Forces. and estimated, respectively. 5. Based on data in Survey of Current Business (U.S. Department of Commerce). Series for disposable income is quarterly. 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION A Seasonally adjusted 1978 1979 1978 1979 1978 1979 SSeerriieess Q4 Ql Q2' Q3 Q4 Ql Q2 Q3 Q4 Ql Q2' Q3 Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Manufacturing 151.7 153.4 153.1 153.2 175.6 176.9 178.2 179.5 86.4 86.7 85.9 85.3 2 Primary processing 162.2 162.1 161.9 163.2 181.2 182.7 184,2 185.7 89.5 88.7 87.9 87.9 146.1 148.7 148.5 147.9 172.7 173.8 175.0 176.2 84.6 85.6 84.8 84.0 4 Materials 154.6 155.5 155.6 156.5 175.4 176.8 178.1 179.8 88.2 88.0 87.3 87.0 5 Durable goods 157.3 158.4 157.7 158.1 180.1 181.5 183.0 184.6 87.4 87.3 86.2 85.7 6 Metal materials 132.2 124.7 124.3 n.a. 139.6 139.8 140.3 n.a. 94.7 89.1 88.5 n.a. 170.3 172.2 173.4 175.4 190.2 191.9 193.7 195.7 89.6 89.7 89.5 89.6 8 Textile, paper, and chemical 177.1 179.1 181.3 183.8 197.9 199.6 201.5 203.8 89.5 89.7 89.9 90.2 9 Textile 119.5 118.2 119.6 n.a. 136.6 136.9 137.3 n.a. 87.5 86.3 87.1 n.a. 10 Paper 138.1 136.9 140.7 n.a. 147.8 148.7 149.9 n.a. 93.4 92.0 93.9 n.a. 218.0 222.7 224.8 n.a. 244.6 247.4 250.6 n.a. 89.1 90.0 89.7 n.a. 12 Energy 128.9 127.9 128.1 129.2 145.7 146.7 147.5 148.3 88.5 87.2 86.9 87.1 A The capacity utilization series has been revised. For a description of the changes, see the August 1979 BULLETIN, pp. 606-07. 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. 1979 Category 1976 1977 1978 Mar. Apr. May June July Aug. Sept. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 156,048 158,559 161,058 162,909 163,008 163,260 163,469 163,685 163,891 164,106 2 Labor force (including Armed Forces)1 96,917 99,534 102,537 104,804 104,193 104,325 104,604 105,141 105,139 105,590 3 Civilian labor force 94,773 97,401 100,420 102,714 102,111 102,247 102,528 103,059 103,049 103,498 Employment 4 Nonagricultural industries2... 84,188 87,302 91,031 93,499 92,987 93,134 93,494 93,949 93,578 94,113 5 Agriculture 3,297 3,244 3,342 3,343 3,186 3,184 3,260 3,262 3,322 3,400 Unemployment 6 Number 7,288 6,855 6,047 5,871 5,937 5,929 5,774 5,848 6,149 5,985 7 Rate (percent of civilian labor force) 7.7 7.0 6.0 5.7 5.8 5.8 5.6 5.7 6.0 5.8 8 Not in labor force 59,130 59,025 58,521 58,105 58,815 58,935 59,865 58,545 58,752 58,515 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 79,382 r82,423 '86,446 '89,039 '89,036 '89,398 '89,626 '89,713 '89,718 89,853 10 Manufacturing 18,997 r19,682 '20,476 '21,073 '21,066 '21,059 '21,063 '21,079 '20,962 20,986 1 1 1 1 2 3 T C M r o i a n n n t i s r n p a g c o t r t c a o t n io s n tr u a c nd ti o p n u blic utilities... 4 3 , , 5 5 7 8 7 7 2 6 9 r r 4 3, , r 7 8 8 5 1 1 1 3 3 ' ' 4 4 , , ' 2 9 8 7 2 5 1 7 1 ' ' 5 4 , , ' 1 6 9 1 1 4 6 4 0 ' ' 4 5 , , ' 5 0 9 5 2 4 9 4 0 ' ' 4 5 , , ' 6 1 9 4 3 4 8 0 4 ' ' 4 5 , , ' 6 1 9 6 9 4 2 0 9 ' ' 4 5 , , ' 1 6 9 6 8 5 9 8 6 ' ' 5 4 , , ' 6 1 9 6 9 6 8 0 5 4 5 , , 6 1 9 5 6 7 5 9 4 14 Trade 17,755 '18,516 '19,499 '20,054 '20,088 '20,129 '20,116 '20,122 '20,112 20,164 1 1 1 5 6 7 S F G e i o n r v v a i e n c r c e n e m ent 1 1 4 4 4 , , , 2 5 8 7 5 7 1 1 1 r r 1 ' 1 5 4 5 , , 0 , 4 3 7 6 0 9 7 3 ' ' 1 1 '4 6 5 , , , 7 4 2 2 7 2 7 6 0 ' ' 1 1 '4 5 6 , , , 8 5 8 9 3 1 9 3 0 ' ' 1 1 '4 6 5 , , , 9 5 8 1 6 8 5 4 0 ' ' 1 1 '4 6 5 , , , 9 9 5 3 5 9 6 4 8 ' ' 1 1 '4 5 7 , , , 9 0 6 5 5 3 1 8 7 ' ' 1 1 '4 5 7 , , , 9 0 6 7 9 3 2 2 5 ' '1 1 '5 5 7 , , , 6 0 1 6 0 4 9 5 7 1 1 5 7 5 , , , 0 2 6 1 4 4 8 5 2 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 Nonfinancial Statistics • October 1979 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value A Monthly data are seasonally adjusted. 1967 1978 1979 Grouping pro- 1978 por- avertion age July Aug. Sept. Jan. Feb. Mar. Apr. May June July Aug.® Sept.8 Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 146.1 147.1 148.0 148.6 151.5 152.0 153.0 150.8 152.4 152.6 152.8 151.5 152.3 2 Products 60.71 144.8 145.6 146.6 146.9 149.2 149.9 150.8 148.4 150.3 150.2 149.9 148.6 149.7 3 Final products 47.82 142.2 143.2 144.2 144.5 146.1 146.8 148.2 145.4 147.8 147.6 147.4 145.7 147.1 4 Consumer goods 27.68 149.1 149.8 150.6 150.8 150.6 151.5 152.9 149.1 152.0 151.8 151.1 148.4 149.9 5 Equipment 20.14 132.8 134.0 135.3 135.9 139.9 140.4 141.7 140.4 141.9 141.9 142.2 142.0 143.1 6 Intermediate products 12.89 154.1 154.7 155.6 155.6 160.8 161.4 160.4 159.7 159.5 159.5 159.3 159.4 159.4 7 Materials 39.29 148.3 149.3 150.2 151.2 155.0 155.2 156.3 154.5 155.7 156.5 157.2 156.0 156.2 Consumer goods 8 Durable consumer goods 7.89 159.2 162. 1 161.5 160.5 160.4 161.1 163.6 151.6 160.5 158.6 157.0 147.5 152.2 9 Automotive products 2.83 179.9 183.8 183.5 179.5 181.4 179.3 186.8 163.0 182.7 175.9 169.8 147.5 158.9 10 Autos and utility vehicles 2.03 172.5 176.7 174.9 170.0 173.2 170.3 178.8 147.4 176.3 167.4 155.6 125.6 141.3 11 Autos 1.90 148.6 152.7 150.2 144.2 145.8 144.9 153.8 128.6 153.1 148.0 141.8 118.5 128.5 12 Auto parts and allied goods 80 198.5 201.9 205.5 203.7 202.2 202.2 207.2 202.7 199.0 197.5 205.9 203.2 203.6 13 Home goods 5.06 147.7 150.0 149.2 149.9 148.6 150.9 150.6 145.2 148.1 148.8 149.8 147.5 148.4 14 Appliances, A/C, and TV 1.40 133.3 138.8 132.4 136.2 124.0 129.8 128.4 115.6 128.4 129.3 129.7 121.0 123.5 15 Appliances and TV 1.33 135.4 141.3 133.1 137.5 124.8 131.4 130.3 116.5 130.2 131.2 131.6 124.4 16 Carpeting and furniture 1.07 164.2 168.2 167.1 167.9 170.7 171.8 173.5 170.7 170.2 170.6 171.9 171.0 17 Miscellaneous home goods 2.59 148.6 148.6 150.9 149.9 152.8 153.7 153.2 150.8 149.6 150.5 151.6 152.2 152.4 18 Nondurable consumer goods 19.79 145.1 144.9 146.3 147.0 146.7 147.7 148.6 148.0 148.7 149.1 148.7 148.8 149.1 19 Clothing 4.29 131.1 130.4 133.3 135.0 130.1 130.7 130.9 127.7 128.6 130.7 126.9 20 Consumer staples 15.50 148.9 148.9 149.9 150.3 151.3 152.4 153.6 153.7 154.2 154.2 154.8 154.6 155.2 21 Consumer foods and tobacco 8.33 140.6 141.1 141.9 141.4 141.8 142.4 145.1 145.2 145.7 146.2 147.4 146.7 22 Nonfood staples 7.17 158.5 158.0 159.2 160.6 162.4 164.0 163.4 163.5 164.1 163.5 163.3 163.8 164.1 23 Consumer chemical products... . 2,63 192.7 193.3 194.1 196.1 200.3 203.1 202.8 201.6 205.2 205.9 206.1 207.0 24 Consumer paper products 1.92 118.4 117.8 118.4 119.8 119.2 122.7 121.4 120.9 121.3 121.1 119.9 120.7 25 Consumer energy products 2.62 153.6 152.3 154.0 155.0 156.0 155.2 154.7 156.4 154.3 152.0 152.2 152.2 26 Residential utilities 1.45 162.1 161.7 161.7 162.2 166.2 167.7 167.9 169.1 167.8 162.3 Equipment 27 Business 12.63 160.3 161.7 163.4 163.8 168.1 169.0 170.8 168.7 171.4 171.5 171.4 171.0 172.4 28 Industrial 6.77 145.8 147.0 148.0 147.6 151.4 152.5 152.8 150.4 151.8 152.0 151.5 151.9 153.3 29 Building and mining 1.44 207.3 210.3 209.0 208.4 208.8 207.9 205.2 204.2 203.7 205.3 207.4 210.9 211.3 30 Manufacturing 3.85 121.2 121.4 123.2 122.8 127.4 129.1 130.3 128.0 130.1 130.1 130.3 131.0 131.4 31 Power 1.47 149.4 151.7 153.3 153.0 157.8 159.1 160.2 156.0 157.7 156.8 152.0 148.9 153.7 32 Commercial transit, farm 5.86 177.2 178.8 181.2 182.5 187.4 188.1 191.6 189.9 193.9 194.0 194.5 193.0 194.4 33 Commercial 3.26 212.0 214.4 215.3 217.6 220.8 221.2 224.4 223.0 224.9 226.4 227.0 229.0 229.9 34 Transit 1.93 133.8 134.7 139.2 139.5 146.8 146.6 150.5 148.8 156.7 155.3 155.0 147.7 151.0 35 Farm 67 132.8 132.4 136.0 135.7 142.0 146.9 150.0 147.7 150.8 148.1 150.0 148.0 36 Defense and space 7.51 86.5 87.5 87.9 89.0 92.4 92.4 92.9 92.9 92.5 92.3 93.3 93.4 94.0 Intermediate products 37 Construction supplies 6.42 151.7 152.4 153.8 153.5 159.1 159.3 157.1 156.0 156.4 156.3 156.4 156.2 156.3 38 Business supplies 6.47 156.5 156.9 157.4 157.7 162.5 163.6 163.8 163.2 162.5 162.6 162.2 162.7 39 Commercial energy products 1.14 168.2 167.8 169.5 170.2 173.6 173.7 173.5 174.6 172.6 169.4 169.3 169.6 Materials 40 Durable goods materials 20.35 149.0 150.5 151.9 153.4 158.1 158.0 159.2 155.7 157.9 159.5 159.9 157.1 157.3 41 Durable consumer parts 4.58 140.8 142.3 142.1 145.1 148.5 146.0 145.8 136.9 142.5 141.8 136.8 129.0 131.0 42 Equipment parts 5.44 166.5 169.4 168.8 170.7 182.2 184.4 186.8 187.0 188.0 191.0 192.1 190.0 190.7 43 Durable materials n.e.c 10.34 143.3 144.2 147.3 148.0 149.7 149.4 150.6 147.7 149.0 150.8 153.2 152.2 151.4 44 Basic metal materials 5.57 121.2 122.1 126.5 127.0 124.4 124.1 126.7 123.2 122.9 126.1 129.0 127.6 45 Nondurable goods materials 10.47 165.6 164.5 165.3 167.8 171.0 172.4 173.1 173.0 173.8 173.4 175.2 175.2 175.9 46 Textile, paper, and chemical materials 7.62 171.8 171.3 170.7 174.6 177.5 179.6 180.1 180.7 181.5 181.7 183.4 183.6 184.4 47 Textile materials 1.85 116.9 115.5 115.6 116.8 118.3 117.4 119.0 117.0 118.8 122.9 122.4 120.7 48 Paper materials 1.62 137.0 134.6 130.0 137.7 133.3 137.4 139.9 140.8 140.1 141.1 145.2 143.9 49 Chemical materials 4.15 210.0 210.7 211.2 214.9 221.2 223.9 223.0 224.7 225.7 223.9 225.6 227.2 50 Containers, nondurable 1.70 159.8 154.2 162.6 160.7 167.8 165.8 167.3 162.0 163.3 159.2 163.1 162.6 51 Nondurable materials n.e.c 1.14 132.7 134.2 133.7 132.5 132.5 134.1 135.6 138.2 138.4 139.0 138.2 137.9 52 Energy materials 8.48 125.3 127.7 127.5 125.6 127.8 127.1 128.7 128.4 127.7 128.3 128 ..6 129.6 129.4 53 Primary energy 4.65 112.6 116.5 115.6 111.5 111.9 110.6 114.6 113.0 111.7 112.4 112.6 114.0 54 Converted fuel materials 3.82 140.8 141.5 141.9 142.7 147.0 147.2 145.9 147.1 147.2 147.6 148.0 148.5 Supplementary groups 55 Home goods and clothing 9.35 140.0 141.0 141.9 143.0 140.1 141.6 141.6 137.2 139.1 140.5 139.3 138.4 138.6 56 Energy, total 12.23 135.4 136.7 137.1 136.0 138.1 137.5 138.4 138.7 137.6 137.2 137.4 138.1 138.1 57 Products 3.76 158.0 157.0 158.7 159.6 161.4 160.8 160.3 161.9 159.9 157.3 157.4 157.5 58 Materials 8.48 125.3 127.7 127.5 125.6 127.8 127.1 128.7 128.4 127.7 128.3 128.6 129.6 129.4 For notes 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" July Aug. Sept. Jan. Feb. Mar. Apr. May June July Aug.f Sept. • Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities . 12.05 141.7 143.6 143.2 142.6 143.9 143.0 143.5 143. 143.4 143.0 144.3 2 Mining 6.36 124.0 127.1 126.2 124.4 123.8 120.9 122.3 122.7 122.8 123.9 125.0 3 Utilities 5.69 161.4 162.0 162.2 163.0 166.2 167.7 167.1 167.4 166.5 164.2 165.8 4 Electric 3.88 182.2 183.2 183.3 184.5 188.4 189.9 188.8 189.0 186.4 182.4 184.0 5 Manufacturing. 87.95 146.8 147.7 148.6 149.6 152.5 153.3 154.5 151.6 153.8 153.9 154.0 6 Nondurable. 35.97 156.9 157.2 158.4 159.3 160.7 162.0 163.0 161.7 162.8 163.0 163.9 7 Durable 51.98 139.7 141. 1 141.8 142.9 146 147.2 148.6 144.6 147.6 147.6 147.2 Mining 8 Metal 10 .51 121.0 117.0 118.0 115.6 124.2 125.3 126.9 128.9 123.1 123.2 128.8 9 Coal 11,12 .69 114.7 133.1 125.9 114.0 115.9 104.5 124.0 130. 133.4 137.5 137.1 10 Oil and gas extraction. . . 13 4.40 124.6 126.6 126.2 125.4 123.0 120.4 119.3 118.6 118.6 119.6 120.7 11 Stone and earth minerals. 14 .75 131.2 131.4 132.1 133.7 135.9 135.7 135.6 135.3 137.8 137.3 136.4 Nondurable manufacturers 12 Foods 8.75 142.7 143.1 143.9 143.7 143.9 145.5 147.6 147.0 149.2 149.5 149.4 13 Tobacco products .67 118.3 118.2 118.5 120.3 120.6 116.2 123.3 120.0 120.2 118.3 118.9 14 Textile mill products 2.68 137.5 137.0 137.1 138.6 141.6 139.9 142.3 141.2 141.5 114.6 144.3 15 Apparel products 3.31 134.2 132.7 137.7 139.6 130.3 133.5 136.5 130.8 128.2 132.0 130.7 16 Paper and products 3.21 144.8 142.1 142.2 144.2 144.6 144.6 149.0 148.7 147.9 148.0 153.0 17 Printing and publishing 4.72 131.5 131.4 131.9 132.6 135.6 138.2 137.3 135.7 136.8 136.9 135.2 18 Chemicals and products 7.74 197.4 198.6 199.3 201.3 206.5 208.6 107.4 207.7 209.7 207.8 209.7 19 Petroleum products 1.79 145.2 144. 1 146.0 147.6 147.0 146.0 143 145.4 142.4 143.9 144.6 20 Rubber and plastic products. 2.24 253.6 260.3 263.4 260.9 267.4 267.5 270.4 265.5 270.0 270.0 276.0 21 Leather and products .86 73.8 73.2 73.3 72.9 74.8 73.4 72.9 69.6 72.3 70.1 69.7 Durable manufactures 22 Ordnance, private and government 19,91 3.64 73.7 74.1 74.0 73.8 74.9 75.8 75.1 75.1 75.3 75. 75.5 23 Lumber and products 24 1.64 136.3 136.2 136.0 136.2 137.3 137.2 137.7 137.2 136. 136. 135.2 24 Furniture and fixtures 25 1.37 155.8 159.3 159.5 160.7 161.7 163.1 163.6 159.4 159.6 159.6 159.5 25 Clay, glass, stone products 32 2.74 157.2 157.0 157.6 159.8 167.4 166.9 164.9 161.2 163.8 162.7 163.3 26 Primary metals 33 6.57 119.9 122.5 124.9 127.4 123.4 120.4 123.7 121.7 121.0 124.3 126.8 27 Iron and steel 331,2 4.21 113.2 116.5 118.3 121.3 113.3 110.8 116.2 115.8 114.3 118.1 119.0 28 Fabricated metal products. 34 5.93 141.6 142.8 143.7 144.2 149.1 150.8 150.2 148.8 150.3 149.3 149.3 29 Nonelectrical machinery... 35 9.15 153.6 154.7 155.5 156.4 161.2 162.9 164.0 161.8 164.3 164.5 165.5 30 Electrical machinery 36 8.05 159.4 162.5 161.5 163.3 170.9 173.2 174.2 170.6 174.7 175.1 174.4 31 Transportation equipment 37 9.27 132.5 133.4 134.2 134.9 141.2 139.9 143.7 131.6 141.9 139.4 135.5 32 Motor vehicles and parts 371 4.50 169.9 171.5 171.6 171.0 177.9 173.1 179.7 156.0 176.3 169.6 160.2 33 Aerospace and miscellaneous transportation equipment... 372-9 4.77 97.2 97.5 98.9 100.9 106.6 108.6 109.7 108.6 109.6 111.0 112.2 34 Instruments 38 2.11 167.1 167.7 170.3 170.4 175.2 176.0 177.3 176.3 174.7 175.9 174.0 35 Miscellaneous manufactures 39 1.51 151.0 150.6 151.8 151.3 152.0 154.0 154.5 152.3 150.7 152.7 153.7 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total . 1507.4 610.2 610.8 613.9 617.2 626.8 627.3 636.1 620.8 632.3 628.7 625.3 612.7 621.2 37 Final 1390.9 471.0 471.2 474.0 476.8 481.7 482.0 491.0 476.4 488.2 485.1 481.7 469.6 477.8 38 Consumer goods. 1277.5 326.6 326.0 327.5 329.9 328.9 329.4 334.7 323.9 331.5 329.8 328.7 319.8 324.4 39 Equipment....".. U13.4 144.4 145.1 146.5 146.9 152.9 152.6 156.3 152.5 156.7 155.4 153.0 149.9 153.4 40 Intermediate 1116.6 139.2 139.7 139.9 140.4 145.1 145.3 145.1 144.4 144.2 143.6 143.5 143.0 143.5 1. 1972 dollars. Production—1976 Revision (Board of Governors of the Federal Reserve System: Washington, D.C.), December 1977. NOTE. Published groupings include some series and subtotals not shown separately. For description and historical data, see Industrial A The industrial production series has been revised. For a description of the changes, see "Revision of Industrial Production Index" in the August 1979 BULLETIN, pp. 603-05. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • October 1979 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1979 1976 1977 1978 Item Feb. Mar. Apr. May June July Aug. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,296 1,677 1,801 1,425 1,621 1,517 1,618 1,639 '1,528 1,614 2 1-family 894 1,126 1,182 881 1,056 1,036 1,047 1,012 '1,001 994 3 2-or-more-family 402 551 619 544 565 481 571 627 '527 620 4 Started 1,538 1,986 2,019 1,381 1,786 1,745 1,835 '1,923 '1,791 1,783 5 1-family 1,163 1,451 1,433 953 1,266 1,278 1,226 '1,288 '1,225 1,209 6 2-or-more-family 377 535 586 428 520 467 609 '635 '566 574 7 Under construction, end of period . 1,147 1,442 1,355 1,344 1,304 1,256 1,244 '1,246 1,239 n.a. 8 1-family 655 829 1,378 793 770 793 729 '722 716 n.a. 9 2-or-more-family 492 613 553 551 534 519 515 '524 523 n.a. 10 Completed 1,362 1,652 1,866 1,894 1,957 2,015 2,029 1,871 1,746 n.a. 11 1-family 1,026 1,254 1,368 1,376 1,412 1,438 1,347 '1,343 1,199 n.a. 12 2-or-more-family 336 398 498 518 545 577 682 '528 '547 n.a. 13 Mobile homes shipped 246 277 276 272 270 273 271 279 '282 257 Merchant builder activity in 1-family units 14 Number sold 639 819 817 697 784 709 709 '692 '804 702 15 Number for sale, end of period i 433 407 423 410 424 425 430 418 '417 417 Price (thousands of dollars) 2 Median 16 Units sold 44.2 48.9 55.9 61.2 60.4 62.6 63.0 '64.1 '63.2 63.6 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 68.7 68.5 71.1 71.8 '74.3 '71.5 73.7 EXISTING UNITS (1-family) 19 Number sold 33,,000022 3,572 3,905 3,620 33,,665500 3,760 3,860 33,,556600 33,,777700 33,,885500 Price of units sold (thous. of dollars)1 /.0 Median 38.1 42.9 48.7 51.9 53.8 54.7 55.9 56.8 57.9 57.7 21 Average 42.2 47.9 55.1 59.5 61.8 62.5 64.2 66.1 66.7 66.3 Value of new construction * (millions of dollars) CONSTRUCTION 22 Total put in place 148,778 172,552 202,219 r210,927 r216,676 '216,212 '223,205 '224,686 '232,747 229,246 23 Private 110,416 134,723 157,455 '169,340 '172,672 '171,692 '174,803 '178,703 '181,711 180,347 24 Residential 60,519 80,957 93,088 r97,794 '96,460 '95,496 '94,963 '97,339 '98,814 98,722 25 Nonresidential, total 4499,,889977 5533,,776666 6644,,336677 r71,546 ''7766,,221122 ''7766,,119966 ''7799,,884400 ''8811,,336644 ''8822,,889977 8811,,662255 Buildings 26 Industrial 7,182 7,713 10,762 13,401 15,201 14,034 14,504 14,697 15,547 14,109 27 Commercial 12,757 14,789 18,280 18,985 20,990 21,463 23,601 24,785 24,785 25,164 28 Other. 6,155 6,200 6,659 6,511 7,071 7,150 7,141 7,306 7,441 7,519 23,803 25,064 28,666 32,640 32,967 33,325 34,101 33,958 34,135 3,591 30 Public 38,312 37,828 44,762 41,587 44,004 44,823 48,402 45,983 51,036 48,899 31 Military 1,521 1,517 1,462 1,059 1,983 1,550 1,531 1,787 1,459 1,702 32 Highway 9,439 9,280 8,627 8,863 8,882 9,875 11,674 10,250 n.a. n.a. 33 Conservation and development... 3,751 3,882 3,697 4,443 4,854 4,417 5,383 3,572 n.a. n.a. 34 Other 3 23,601 23,149 23,503 27,222 28,285 30,376 29.814 30,374 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 January 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 Nacomparable with data in prior periods due to changes by the Bureau of tional Association of Realtors. All back and current figures are availthe Census in its estimating techniques. For a description of these changes able from originating agency. Permit authorizations are 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 IIInnndddeeexxx llleeevvveeelll IIIttteeemmm 1978 1979 1979 AAAuuuggg... 11997788 11997799 111999777999 AAuugg.. AAuugg.. (((111999666777 Sept. Dec. Mar. June Apr. May June July Aug. === 111000000)))333 CONSUMER PRICES1 7.9 11.8 8.5 8.5 13.0 13.4 1.1 1.1 1.0 1.0 1.1 221.1 2 Commodities 7.4 12.1 7.3 9.6 14.5 13.3 1.2 .9 1.0 .9 .9 212.2 3 Food 10.3 9.7 4.8 10.2 17.7 7.5 1.0 .7 .2 . 1 0 236.3 4 Commodities less food 6.2 13.2 8.3 9.6 12.9 15.8 1.3 1.1 1.3 1..2 1.3 199.5 5 Durable 7.1 10.1 9.1 11.3 10.0 9. 1 .9 .5 .8 .7 .7 193.6 6 Nondurable 4.8 17.1 6.9 6.7 16.5 25.8 1.9 1.8 2.1 2.1 1.9 205.4 7 Services 8.7 11.3 10.3 7.2 10.6 13.8 .9 1.3 1.0 1.1 1.2 237.6 8 Rent 7.1 7.5 7.3 7.7 3.6 8.7 .5 1.0 .5 .8 .9 177.5 9.0 12.0 10.8 7.1 11.7 14.5 1.0 1.3 1.1 1.2 1.3 248.8 Other groupings 7.5 12.2 9.3 8.5 1122..00 1144..99 1.2 1.2 1.1 1.2 1.3 216.9 11 All items less food and energy 7.6 9.9 9.7 7.7 9.3 11.2 .9 .9 .8 .7 1.0 209.4 12 Homeownership 11.2 16.0 14.6 10.9 16.7 18.0 1.4 1.3 1.4 1.4 1.7 267.6 PRODUCER PRICES 13 Finished goods 7.9 11.1 7.4 10.5 14.3 6.8 r.9 .4 '.4 1.1 1.2 217.3 14 Consumer 7.7 12.2 7.5 11.1 16.0 6.1 .7 r.4 '.3 1.2 1.6 217.2 15 Foods 8.4 8.4 4.9 15.3 21.0 -11.1 -.4 r— 1.5 '-1.1 0.0 1.2 223.2 16 Excluding foods 7.3 14.2 8.8 8.8 13.4 16.8 1.3 rl. 5 '1.1 1.9 1.8 212.1 17 Capital equipment 8.2 8.6 7.0 8.8 10.3 9.2 rl .2 '. 6 '.4 .8 .1 217.1 18 Materials 8.6 14.5 7.5 13.0 17.9 11.3 n.o '. 8 .9 1.7 1.0 253.9 19 Intermediate2 6.6 13.8 6.9 11.2 14.0 14.3 rl. 6 1.0 '.8 1.6 1.4 248.6 Crude 20 Nonfood 13.1 21.4 16.9 19.8 29.2 22.0 -.5 '2.4 '3.2 1.4 .5 353.5 21 Food 17.6 14.3 2.8 21.2 31.0 -7.1 -.4 r —. 2 -1.2 2.1 -.2 243.6 1. Figures for consumer prices are those for all urban consumers. 3. Not seasonally adjusted. 2. Excludes intermediate materials for food manufacturing and manufactured animal feeds. SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • October 1979 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1978 1979 AAccccoouunntt 11997766 11997777 11997788 Q1 Q2 Q3 Q4 Q1 Q2r GROSS NATIONAL PRODUCT 1 Total 1,702.2 1,899.5 2,127.6 2,011.3 2,104.2 2,159.6 2,235.2 2,292.1 2,329.8 By source 2 Personal consumption expenditures 1,089.9 1,210.0 1,350.8 1,287.2 1,331.2 1,369.3 1,415.4 1,454.2 1,475.9 3 Durable goods 157.4 178.8 200.3 185.3 200.3 203.5 212.1 213.8 208.7 4 Nondurable goods 443.9 481.3 530.6 505.9 521.8 536.7 558.1 571.1 581.2 5 Services 488.5 549.8 619.8 596.0 609.1 629.1 645.1 669.3 686.0 6 Gross private domestic investment 243.0 303.3 351.5 327.0 352.3 356.2 370.5 373.8 395.4 7 Fixed investment 233.0 281.3 329.1 304.1 326.5 336.1 349.8 354.6 361.9 8 Nonresidential 164.9 189.4 221.1 203.7 218.8 225.9 236.1 243.4 249.1 9 Structures 57.3 62.6 76.5 66.9 75.2 79.7 84.4 84.9 90.5 10 Producers' durable equipment 107.6 126.8 144.6 136.8 143.6 146.3 151.8 158.5 158.6 11 Residential structures 68.1 91.9 108.0 100.5 107.7 110.2 113.7 111.2 112.9 12 Nonfarm 65.7 88.8 104.4 96.8 104.3 106.4 110.0 107.8 109.1 13 Change in business inventories 10.0 21.9 22.3 22.8 25.8 20.0 20.6 19.1 33.4 14 Nonfarm 12.1 20.7 21.3 22.0 25.3 18.5 19.3 18.8 32.6 15 Net exports of goods and services 8.0 -9.9 -10.3 -22.2 -7.6 -6.8 -4.5 4.0 -8.1 16 Exports 163.3 175.9 207.2 184.4 205.7 213.8 224.9 238.5 243.7 17 Imports 155.4 185.8 217.5 206.6 213.3 220.6 229.4 234.4 251.9 18 Government purchases of goods and services... 361.3 396.2 435.6 419.4 428.3 440.9 453.8 460.1 466.6 19 Federal 129.7 144.4 152.6 150.9 148.2 152.3 159.0 163.6 161.7 20 State and local 231.6 251.8 283.0 268.5 280.1 288.6 294.8 296.5 304.9 By major type of product 21 Final sales, total 11,,669922..11 11,,887777..66 22,,110055..22 11,,998888..55 2,078.4 2,139.5 2,214.5 2,272.9 2,296.4 22 Goods 762.7 842.2 930.0 873.0 922.5 940.9 983.8 1,011.8 1,018.1 23 Durable 305.9 345.9 380.4 358.7 378.0 382.6 402.3 425.5 422.4 456.8 496.3 549.6 514.3 544.5 558.3 581.6 586.2 595.7 776.7 866.4 969.3 934.1 956.2 981.7 1,005.3 1,041.4 1,064.2 162.7 190.9 228.2 204.2 225.6 237.0 246.0 238.9 247.5 10.0 21.9 22.3 22.8 25.8 20.0 20.6 19.1 33.4 5.3 11.9 13.9 18.6 13.1 10.3 13.4 18.4 24.3 4.7 10.0 8.4 4.2 12.7 9.7 7.2 .7 9.1 30 MEMO: Total GNP in 1972 dollars 1,273.0 1,340.5 1,399.2 1,367.8 1,395.2 1,407.3 1,426.6 1,430.6 1,422.3 NATIONAL INCOME 31 Total 1,359.8 1,525.8 1,724.3 1,621.0 1,703.9 1,752.5 1,820.0 1,869.0 1,897.9 32 Compensation of employees 1,037.8 1,156.9 1,304.5 1,244.0 1,288.2 1,321.1 1,364.8 1,411.2 1,439.7 33 Wages and salaries 890.0 984.0 1,103.5 1,052.0 1,090.0 1,117.4 1,154.7 1,189.4 1,211.5 34 Government and government enterprises.. 188.0 201.3 218.0 212.3 215.3 219.2 225.1 228.1 231.2 35 Other 702.0 782.7 885.5 839.7 874.6 898.1 929.6 961.3 980.3 36 Supplement to wages and salaries 147.8 172.9 201.0 192.0 198.3 203.7 210.1 221.8 228.2 37 Employer contributions for social 7700..44 8811..22 9944..66 91.0 93.6 95.5 98.2 105.8 107.9 77.4 91.8 106.5 101.1 104.7 108.2 111.9 116.0 120.3 39 Proprietors' income1 89.3 100.2 116.8 109.1 115.0 117.4 125.7 129.0 129.3 71.0 80.5 89.1 83.4 87.3 91.3 94.4 94.8 95.5 18.3 19.6 27.7 25.7 27.7 26.1 31.3 34.2 33.7 22.1 24.7 25.9 25.2 24.4 26.8 27.1 27.3 26.8 43 Corporate profits1 126.8 150.0 167.7 141.2 169.4 175.2 184.8 178.9 176.6 44 Profits before tax3 156.0 177.1 206.0 177.5 207.2 212.0 227.4 233.3 227.9 45 Inventory valuation adjustment -14.6 -15.2 -25.2 -23.9 -25.1 -23.0 -28.8 -39.9 -36.6 46 Capital consumption adjustment -14.5 -12.0 -13.1 -12.4 -12.6 -13.8 -13.8 -14.5 -14.7 83.8 94.0 109.5 101.5 106.8 111.9 117.6 122.6 125.6 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 (Department 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. 1978 1979 1976 1977 1978 Ql Q2 Q3 Q4 Ql PERSONAL INCOME AND SAVING 1 Total personal income. 1,381.6 1,531.6 1,717.4 1,634.8 1,689.3 1,742.5 1,803.1 1,852.6 2 Wage and salary disbursements 890.0 984.0 1,103.3 1,052.0 1,090.0 1,116.8 1,154.3 1,189.3 3 Commodity-producing industries 307.2 343.1 387.4 363.9 383.4 393.7 408.6 423.0 4 Manufacturing 237.4 266.0 298.3 285.6 294.1 300.8 312.7 324.8 5 Distributive industries 216.3 239.1 269.4 257.6 265.9 272.5 281.6 291.1 6 Service industries 178.5 200.5 228.7 218.2 225.4 231.9 239.4 247.2 7 Government and government enterprises., 188.0 201.3 217.8 212.3 215.3 218.7 224.7 228.0 8 Other labor income 77.4 91.8 106.5 101.1 104.7 108.2 111.9 116.0 9 Proprietors' income1 89.3 100.2 116.8 109.1 115.0 117.4 125.7 129.0 10 Business and professional1 71.0 80.5 89.1 83.4 87.3 91.3 94.4 94.8 11 Farm1 18.3 19.6 27.7 25.7 27.7 26.1 31.3 34.2 12 Rental income of persons2 22.1 24.7 25.9 25.2 24.4 26.8 27.1 27.3 13 Dividends 37.5 42.1 47.2 45.1 46.0 47.8 49.7 51.5 14 Personal interest income 127.0 141.7 163.3 152.2 159.4 167.2 174.3 181.0 15 Transfer payments 193.8 208.4 224.1 217.4 218.8 228.3 231.8 237.3 16 Old-age survivors, disability, and health insurance benefits 92.9 105.0 116.3 111.4 112.4 119.8 121.5 123.8 17 LESS: Personal contributions for social insurance 55.6 61.3 69.6 67.3 69.0 70.2 71.8 78.7 18 EQUALS: Personal income 1,381.6 1,531.6 1,717.4 1,634.8 1,689.3 1,742.5 1,803.1 1,852.6 19 LESS: Personal tax and nontax payments.... 197.1 226.4 259.0 239.8 252.1 266.0 278.2 280.4 20 EQUALS: Disposable personal income 1,184.5 1.305.1 1,458.4 1,395.0 1,437.3 1.476.5 1,524.8 1,572.2 21 LESS: Personal outlays 1,115.9 1.240.2 1,386.4 1,320.4 1,366.1 1.405.6 1,453.4 1,493.0 22 EQUALS: Personal saving 68.6 65.0 72.0 74.6 71.2 70.9 71.5 79.2 MEMO: Per capita (1972 dollars) 23 Gross national product 5,916 6,181 6,402 6,277 6,392 6,433 6,506 6,514 24 Personal consumption expenditures. 3.813 3,974 4,121 4,051 4,099 4,138 4,197 4,197 25 Disposable personal income 4,144 4,285 4,449 4,390 4,426 4,462 4,522 4,536 26 Saving rate (percent) 5.8 5.0 4.9 5.3 5.0 4.8 4.7 5.0 GROSS SAVING 27 Gross private saving 271.9 295.6 324.9 308.9 324.2 330.4 336.1 345.2 28 Personal saving 68.6 65.0 72.0 74.6 71.2 70.9 71.5 79.2 29 Undistributed corporate profits1 25.5 35.2 36.0 25.3 38.7 40.0 40.1 36.1 30 Corporate inventory valuation adjustment., -14.6 -15.2 -25.2 -23.9 -25.1 -23.0 -28.8 -39.9 Capital consumption allowances 31 Corporate 111.6 121.3 132.9 128.9 131.7 134.3 136.8 139.9 32 Noncorporate 66.1 74.1 84.0 80.2 82.7 85.2 87.7 89.9 33 Wage accruals less disbursements 34 Government surplus, or deficit (—), national income and product accounts -35.7 -19.5 -.3 -19.2 5.0 2.3 10.8 15.8 35 Federal -53.6 -46.3 -27.7 -49.4 -24.6 -20.4 -16.3 -11.7 36 State and local 17.9 26.8 27.4 30.2 29.6 22.7 27.1 27.6 37 Capital grants received by the United States, net 1.1 38 Investment 242.3 283.6 327.9 292.7 331.5 336.5 351.0 362.8 39 Gross private domestic. 243.0 303.3 351.5 327.0 352.3 356.2 370.5 373.8 40 Net foreign -19.6 -23.5 -34.2 -20.8 -19.6 -19.4 -11.0 41 Statistical discrepancy. 7.5 3.3 3.0 2.3 3.9 4.1 .6 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • October 1979 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted, t 1978 1979 IItteemm ccrreeddiittss oorr ddeebbiittss 11997766 11997777 11997788 Q2 Q3 Q4 Q1 Q2 1 Balance on current account 4,605 -14,092 -13,895 -3,426 -3,227 -313 415 -965 -2,858 -5,955 722 1,731 — 85 3 Merchandise trade balance2 -9,306 -30,873 -34,187 -7,907 -8,012 -6,369 -6,115 -7,716 4 Merchandise exports 114,745 120.816 141,884 35,267 36,491 39,315 41,348 42,792 5 Merchandise imports -124,051 —151^689 -176,071 -43,174 -44,503 -45,684 -47,463 -50,508 6 Military transactions, net 674 1,679 492 237 247 -239 34 -92 7 Investment income, net3 15,975 17,989 21,645 4,854 4,952 6,599 6,864 7,398 8 Other service transactions, net 2,260 1,783 3,241 703 819 1,010 954 827 9 MEMO: Balance on goods and services3-4 9,603 -9,423 -8,809 -2,113 -1,994 1,001 1,737 417 10 Remittances, pensions, and other transfers -1,851 -1,895 -1,934 -486 -463 -524 -517 -485 11 U.S. government grants (excluding military) -3,146 -2,775 -3,152 -827 -770 -790 -805 -897 12 Change in U.S. government assets, other than official reserve assets, net (increase, —) -4,214 -3,693 -4,656 -1,263 -1,390 -994 -1,094 -1,000 13 Change in U.S. official reserve assets (increase, —) -2,558 -375 732 248 115 182 -3,585 343 14 Gold 0 -118 -65 0 0 -65 0 0 15 Special drawing rights (SDRs) -78 -121 1,249 -104 -43 1,412 -1,142 6 16 Reserve position in International Monetary Fund -2,212 -294 4,231 437 105 3,275 -86 -78 17 Foreign currencies -268 158 -4,683 -85 -37 -4,440 -2,357 415 18 Change in U.S. private assets abroad (increase, — )3 -44,498 -31,725 -57,033 -4,451 -8,774 -29,442 -2,958 -14,811 19 Bank-reported claims -21,368 -11,427 -33,023 715 -5,488 -21,980 6,572 -7,147 20 Nonbank-reported claims -2,296 -1,940 -3,853 315 -29 -1,898 -2,719 n.a. 21 U.S. purchase of foreign securities, net -8,885 -5,460 -3,487 -1,095 -475 -918 -1,056 -639 22 U.S. direct investments abroad, net3 -11,949 -12,898 -16,670 -4,386 -2,782 -4,646 -5,755 -7,025 23 Change in foreign official assets in the United States (increase, +) 17,573 36,656 33,758 -5,265 4,641 18.764 -9,391 -9,515 24 U.S. Treasury securities 9,319 30,230 23,542 -5,813 3,029 13,422 -8,872 -12,737 25 Other U.S. government obligations 573 2,308 656 211 443 -115 -5 94 26 Other U.S. government liabilities5 4,507 1,240 2,754 -136 122 2,045 -164 154 27 Other U.S. liabilities reported by U.S. banks 969 773 5,411 -164 963 3,156 -563 2,829 28 Other foreign official assets® 2,205 2,105 1,395 637 84 256 213 145 29 Change in foreign private assets in the United States (increase, +)3 18,826 14,167 29,956 6,207 10,717 10,475 10,868 13,931 30 U.S. bank-reported liabilities 10,990 6,719 16,975 1,865 7,958 7,556 7,157 11,299 31 U.S. nonbank-reported liabilities -578 473 1,640 315 11,,000044 -177 -651 n.a. 32 Foreign private purchases of U.S. Treasury securities, net 2,783 534 2,180 803 -1,053 1,549 2,583 -239 33 Foreign purchases of other U.S. securities, net 1,284 2,713 2,867 1,347 528 540 790 893 34 Foreign direct investments in the United States, net3 4,347 3,728 6,294 1,877 2,280 1,008 989 1,978 35 Allocation of SDRs 0 0 0 0 0 0 1,139 0 36 Discrepancy 10,265 -937 11,139 7,950 -2,082 1,328 4,606 12,016 37 Owing to seasonal adjustments . 551177 --22,,771166 11,,330011 998855 774488 38 Statistical discrepancy in recorded data before seasonal adjustment 10,265 -937 11,139 7,433 634 27 3,621 11,268 MEMO: Changes in official assets 39 U.S. official reserve assets (increase, —) -2,558 -375 732 248 115 182 -3,585 343 40 Foreign official assets in the United States (increase, +).. 13,066 35,416 31,004 -5,129 4,519 1166,,771199 --99,,222277 --99,,666699 41 Changes in Organization of Petroleum Exporting Countries official assets in the United States (part of line 25 above) 9,581 6,351 -727 -2,705 --11,,779944 1,803 --11,,991166 676 42 Transfers under military grant programs (excluded from lines 4, 6, and 11 above) 373 220044 259 50 69 63 31 48 1. Seasonal factors are no longer calculated for lines 13 through 42. makes various adjustments to merchandise trade and service transactions. 2. Data are on an international accounts (IA) basis. Differs from the 5. Primarily associated with military sales contracts and other transaccensus basis primarily because the IA basis includes imports into the tions arranged with or through foreign official agencies. U.S. Virgin Islands, and it excludes military exports, which are part of 6. Consists of investments in U.S. corporate stocks and in debt securiline 6. ties of private corporations and state and local governments. 3. Includes reinvested earnings of incorporated affiliates. 4. Differs from the definition of "net exports of goods and services" in NOTE. Data are from Bureau of Economic Analysis, Survey of Current the national income and product (GNP) account. The GNP definition 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. 1979 IItteemm 11997766 11997777 11997788 Feb. Mar.r Apr. May June July Aug. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 115,156 121,150 114433,,557744 13,507 14,452 13,883 13,862 r15,038 15,669 15,821 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded 121,009 147,685 172,026 14,806 15,273 16,036 16,342 16,937 16,777 18,177 3 Trade balance -5,853 -26,535 -28,452 -1,299 -821 -2,153 -2,480 -1,900 -1,108 -2,357 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 1979 TTyyppee 11997766 11997777 11997788 Mar. Apr. May June July Aug. Sept. 1 Total i 18,747 19,312 18,650 21,658 21,403 22,230 21,246 20,023 20,023 18,534 2 Gold stock, including Exchange Stabilization Fund2 11,598 11,719 11,671 11,479 11,418 11,354 11,323 11,290 11,259 11,228 3 Special drawing rights1* 3 2,395 2,629 1,558 2,667 2,602 2,624 2,670 2,690 2,689 2,725 4 Reserve position in International Monetary Fund1 4,434 4,946 1,047 1,121 1,097 1,193 1,204 1,200 1,277 1,280 5 Foreign currencies4 320 18 4,374 6,391 6,286 7,059 6,049 4,843 4,798 3,301 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 • October 1979 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1979 AAsssseett aaccccoouunntt 1976 1977 19782 Jan. Feb. Mar. Apr. May' June Julyp All foreign countries 1 Total, all currencies 219,420 258,897 306,795 '296,604 '296,983 '307,688 '303,799 311,051 326,732 325,923 2 Claims on United States 7,889 11,623 17,340 '16,210 '16,094 '22,894 '19,959 24,527 29,292 26,573 4,323 7,806 12,811 '11,659 '11,217 '17,300 '14,233 17,917 22,633 19,682 4 Other 3,566 3,817 4,529 4,551 4,877 5,594 5,726 6,610 6,659 6,891 5 Claims on foreigners 204,486 238,848 278,135 '268,715 '268,649 '271,828 '270,946 274,207 284,326 286,013 6 Other branches of parent bank.... 45,955 55,772 70,338 66,934 64,518 '65,257 64,076 65,908 69,349 69,775 7 Banks 83,765 91,883 103,111 '98,257 '99,720 '101,840 '101,772 103,242 107,564 107,767 10,613 14,634 23,737 23,768 24,586 24,895 24,828 24,690 24,834 24,543 64,153 76,560 80,949 '79,756 '79,825 '79,836 '80,270 80,367 82,579 83,928 10 Other assets 7,045 8,425 11,320 '11,679 '12,240 '12,966 '12,894 12,317 13,114 13,337 11 Total payable in U.S. dollars 167,695 193,764 224,940 '215,625 '214,590 '224,453 '221,904 228,311 237,903 234,097 12 Claims on United States 7,595 11,049 16,382 '15,376 '15,159 '22,029 '18,989 23,579 28,222 25,504 13 Parent bank 4,264 7,692 12,625 '11,466 '10,987 '17,108 '13,994 17,735 22,379 19,426 14 Other 3,332 3,357 3,757 3,910 4,172 4,921 4,995 5,844 5,843 6,078 15 Claims on foreigners 156,896 178,896 203,498 '194,846 '193,717 '196,496 '196,404 198,547 203,345 202,121 16 Other branches of parent bank.... 37,909 44,256 55,408 52,020 49,864 50,077 49,615 50,738 52,884 53,396 17 Banks 66,331 70,786 78,686 '73,930 '74,861 '77,236 '77,528 79,002 81,316 79,920 18 Public borrowers1 9,022 12,632 19,567 19,818 20,338 21,091 20,851 20,815 20,552 20,149 43,634 51,222 49,837 '49,078 '48,654 '48,092 '48,410 47,992 48,593 48,656 20 Other assets 3,204 3,820 5,060 '5,403 5,714 '5,928 '6,511 6,185 6,336 6,472 United Kingdom 21 Total, all currencies 81,466 90,933 106,593 100,786 101,179 102,144 102,876 104,915 112,881 115,213 22 Claims on United States 3,354 4,341 5,370 3,960 3,912 5,019 5,268 6,303 7,517 8,409 23 Parent bank 2,376 3,518 4,448 2,930 2,689 3,544 3,679 4,410 5,495 6,182 24 Other 978 823 922 1,030 1,223 1,475 1,589 1,893 2,022 2,227 25 Claims on foreigners 75,859 84,016 98,137 93,690 94,032 93,840 94,120 95.266 101,668 103,029 26 Other branches of parent bank.... 19,753 22,017 27,830 25,911 24,474 24,911 24,435 25,248 29,158 28,375 27 Banks 38,089 39,899 45,013 42,531 44,032 42,964 43,308 43,657 44,800 46,286 1,274 2,206 4,522 4,549 4,548 4,608 4,547 4,579 4,872 4,492 29 Nonbank foreigners 16,743 19,895 20,772 20,699 20,978 21,357 21,830 21,782 22,838 23,876 30 Other assets 2,253 2,576 3,086 3,136 3,235 3,285 3,488 3,346 3,696 3,775 31 Total payable in U.S. dollars 61,587 66,635 75,860 70,502 70,525 71,499 72,015 73,480 78,155 79,244 32 Claims on United States 3,275 4,100 5,113 3,738 3,618 4,710 4,946 5,981 7,058 7,957 33 Parent bank 2,374 3,431 4,386 2,878 2,610 3,488 3,612 4,374 5,386 6,065 34 Other 902 669 727 860 1,008 1,222 1,334 1,607 1,672 1,892 35 Claims on foreigners 57,488 61,408 69,416 65,364 65,416 65,214 65,356 65,968 69,426 69,528 36 Other branches of parent bank.... 17,249 18,947 22,838 21,171 19,884 20,370 19,866 20,505 23,999 23,480 37 Banks 28,983 28,530 31,482 29,113 30,185 29,393 29,924 30,211 29,803 30,659 846 1,669 3,317 3,342 3,414 3,523 3,429 3,331 3,396 3,167 10,410 12,263 11,779 11,738 11,933 11,928 12,137 11,921 12,228 12,222 824 1,126 1,331 1,400 1,491 1,575 1,713 1,531 1,671 1,759 Bahamas and Caymans 66,774 79,052 91,735 88,767 88,999 97,509 93,832 98,057 103,387 98,864 42 Claims on United States 3,508 5,782 9,635 10,621 10,000 15,774 12,859 16,360 19,979 16,610 43 Parent bank 1,141 3,051 6,429 7,514 6,786 12,158 9,332 12,244 15,952 12,539 44 Other 2,367 2,731 3,206 3,107 3,214 3,616 3,527 4,116 4,027 4,071 45 Claims on foreigners 62,048 71,671 79,774 75,792 76,507 79,057 77,992 78,869 80,601 79,504 46 Other branches of parent bank.... 8,144 11,120 12,904 11,475 11,841 12,086 11,756 11,886 11,295 11,847 47 Banks 25,354 27,939 33,677 31,640 31,534 33,821 33,524 34,063 36,560 34,997 7,105 9,109 11,514 11,392 12,125 12,573 12,360 12,703 12,445 12,301 49 Nonbank foreigners 21,445 23,503 21,679 21,285 21,007 20,577 20,352 20,217 20,301 20,359 50 Other assets 1,217 1,599 2,326 2,354 2,492 2,678 2,981 2,828 2,807 2,750 51 Total payable in U.S. dollars 62,705 73,987 85,417 82,423 82,616 91,184 87,875 91,829 97,028 92,241 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A57 3.13 Continued 1979 LLiiaabbiilliittyy aaccccoouunntt 1976 1977 19782 Jan. Feb. Mar. Apr. May June July*7 All foreign countries 52 Total, all currencies 219,420 258,897 306,795 '296,604 '296,983 '307,688 '303,799 '311,051 326,732 325,923 53 To United States 32,719 44,154 57,948 53,349 54,731 56,447 56,039 '57,668 61,056 60,038 54 Parent bank 19,773 24,542 28,564 25,445 24,529 21,484 23,992 '23,440 19,362 20,265 5 5 6 5 N O o th n e b r a b n a k n s ks in United States | 12 946 1 1 2 7 , , 3 0 3 4 8 6 1 8 9 , , 2 7 0 0 0 4 2 9 1 , , 1 0 9 0 6 6 ' ' 1 2 2 2 , , 5 4 4 1 7 6 '2 '9 2 , , 8 1 8 5 8 9 '2 '9 4 , , 9 3 0 2 4 4 2 1 6 4 , , 7 9 0 8 6 8 2 1 7 1 , , 8 9 0 6 5 8 57 Foreigners 179,954 206,579 238,912 '233,253 '232,286 '240,968 '237,377 '242,186 253,784 253,228 58 Other branches of parent bank.... 44,370 53,244 67,496 '65,011 '62,410 '62,431 '61,982 '63,709 66,537 67,696 59 Banks 83,880 94,140 97,711 '93,013 '94,312 '102,346 '100,148 '101,779 109,180 105,400 60 Official institutions 25,829 28,110 31,936 31,137 32,028 34,275 33,006 34,107 34,377 35,364 61 Nonbank foreigners 25,877 31,085 41,769 '44,092 '43,536 '41,916 '42,241 '42,591 43,690 44,768 62 Other liabilities 6,747 8,163 9,935 '10,002 '9,966 '10,273 '10,383 '11,197 11,892 12,657 63 Total payable in U.S. dollars 173,071 198,572 230,810 '221,355 '221,051 '229,706 '226,469 '232,240 243,093 240,097 64 To United States 31,932 42,881 55,811 51,313 52,577 54,357 54,070 '55,536 58,516 57,398 65 Parent bank 19,559 24,213 27,493 24,462 23,523 20,452 23,048 '22,503 18,340 19,229 66 Other banks in United States | 12 373 12,084 7,939 8,855 '12,302 '9,685 '9,671 14,690 11,662 16,234 18,912 20,199 '21,603 '21,337 '23,362 25,486 26,507 68 To foreigners 137,612 151,363 169,927 '164,654 '163,029 '169,665 '166,928 '170,528 178,217 176,321 69 Other branches of parent bank.... 37,098 43,268 53,396 '50,975 48,411 48,134 48,371 49,420 51,007 52,004 70 Banks 60,619 64,872 63,000 58,529 59,226 '65,597 63,977 '65,250 70,848 66,090 71 Official institutions 22,878 23,972 26,404 25,567 26,413 28,524 27,108 28,310 28,117 29,498 17,017 19,251 27,127 '29,583 '28,979 '27,410 '27,472 '27,548 28,245 28,729 73 Other liabilities 3,527 4,328 5,072 '5,388 '5,445 '5,684 '5,471 '6,176 6,360 6,378 United Kingdom 74 Total, all currencies 81,466 90,933 106,593 100,786 101,179 102,144 102,876 104,915 112,881 115,213 75 To United States 5,997 7,753 9,730 8,118 9,214 10,086 10,781 11,697 12,779 13,621 76 Parent bank 1,198 1,451 1,887 1,585 1,731 1,461 1,814 2,113 1,505 1,704 77 Other banks in United States.... I> A 7/07S0 6 302 4,232 2,693 3,216 3,677 3,541 3,380 4,265 4,840 78 Nonbanks 3,611 3,840 4,267 4,948 5,426 6,204 7,009 7,077 79 To foreigners 73,228 80,736 93,202 88,942 88,122 88,068 88,174 88,796 95,385 96,259 80 Other branches of parent bank... 7,092 9,376 12,786 12,712 11,303 10,910 11,023 10,931 11,353 11,168 81 Banks 36,259 37,893 39,917 36,142 36,655 38,318 39,391 38,417 42,297 41,677 82 Official institutions 17,273 18,318 20,963 19,700 20,637 21,845 20,115 21,312 23,140 24,017 83 Nonbank foreigners 12,605 15,149 19,536 20,388 19,527 16,995 17,645 18,136 18,595 19,397 84 Other liabilities 2,241 2,445 3,661 3,726 3,843 3,990 3,921 4,422 4,717 5,333 85 Total payable in U.S. dollars 63,174 67,573 77,030 72,048 72,293 72,639 72,653 74,127 79,256 80,426 86 To United States 5,849 7,480 9,328 7,736 8,855 9,756 10,439 11,200 12,199 13,074 1,182 1,416 1,836 1,539 1.694 1,418 1,780 2,047 1,460 1,637 8 89 8 N O o th n e b r a b n a k n s ks in United States | 4 667 6 064 4 3 , , 1 3 4 4 4 8 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 6 9 7 2 5 3 , , 8 32 3 1 2 4 6 , , 1 5 9 4 4 5 4 6 , , 7 6 7 6 5 2 90 To foreigners 56,372 58,977 66,216 62,629 61,729 61.215 60,689 60,948 65,081 65,434 91 Other branches of parent bank... 5,874 7,505 9,635 9,890 8,393 7,985 7,706 7,777 7,711 7,353 92 Banks 25,527 25,608 25,287 21,642 21,911 23,017 24,002 22,684 25,436 24,270 93 Official institutions 15,423 15,482 17,091 15,834 16,868 18,030 16,197 17,486 19,093 20,288 9,547 10,382 14,203 15,263 14,557 12,183 12,784 13,001 12,841 13,523 95 Other liabilities 953 1,116 1,486 1,683 1,709 1,668 1,525 1,979 1,976 1,918 Bahamas and Caymans 66,774 79,052 91,735 88,767 88,999 97,509 93,832 '98,057 103,387 98,864 97 To United States 22,721 32,176 39,431 37,795 37,552 38,672 37,698 '38,764 40,063 37,888 98 Parent bank 16,161 20,956 20,456 18,336 16,732 14,877 16,627 '16,057 12,286 12,246 1 9 0 9 0 N Ot o h n e b r a b n a k n s ks in United States I> £o ,jou 1111 ,zzoum 1 6 2 , , 1 7 9 7 9 6 1 4 5 , , 2 1 7 8 5 4 1 4 5 , , 8 9 6 5 3 7 '1 '7 6 , , 0 75 4 1 4 ' ' 1 5 5 , , 2 8 2 4 4 7 '1 '5 7 , , 4 3 0 0 4 3 1 8 8 , , 9 8 7 0 3 4 1 5 9 , , 8 7 5 8 6 6 101 To foreigners 42,899 45,292 50,447 49,153 49,534 56,742 54,124 '57,133 61,176 58,800 102 Other branches of parent bank... 13,801 12,816 16,094 14,266 13,697 13,923 14,716 15,997 17,104 18,223 103 Banks 21,760 24,717 23,104 22,290 23,299 28,749 25,964 '28,599 31,662 28,268 104 Official institutions 3,573 3,000 4,208 4,602 4,429 5,181 5,328 4,970 4,074 4,376 105 Nonbank foreigners 3,765 4,759 7,041 7,995 8,109 8,889 8,116 '7,567 8,336 7,933 106 Other liabilities 1,154 1,584 1,857 1,819 1,913 2,095 2,010 2,160 2,148 2,176 107 Total payable in U.S. dollars 63,417 74,463 87,014 84,020 84,337 92,673 88,942 '92,797 97,993 93,495 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 • October 1979 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1979 Item 1976 1977 1978 r Feb.r Mar.r Apr.r Mayr Juner July" Aug." BY TYPE 1 Total i 95,634 131,097 162,390 160,103 153,937 148,044 140,752 143,972 147,725 148,375 2 Liabilities reported by banks in the United States2 17,231 18,003 23,122 23.179 22.699 24,648 25,384 25,348 25,604 25,111 3 U.S. Treasury bills and certificates3 37,725 47,820 67.671 65.803 59.774 51.614 43,747 46,304 49,427 50,146 U.S. Treasury bonds and notes 4 Marketable 11,788 32,164 35.907 35,538 36,063 36.305 36.156 36,454 37,487 38,000 5 Nonmarketable4 20,648 20,443 20.970 20,912 20,471 20,467 20.467 20,697 19,797 19,547 6 U.S. securities other than U.S. Treasury securities S 8,242 12,667 14,720 14,671 14.930 15.010 14.971 15,169 15,437 15,571 BY AREA 7 Total 95,634 131,097 162,390 160,103 153,937 148,044 140,725 143,972 147,752 148,375 8 Western Europe1 45,882 70,748 92,984 92,867 90,191 85,040 80,995 83,500 86,601 86,327 9 Canada 3,406 2,334 2,486 1,908 3,088 3,044 1,993 1,979 2,116 2,185 10 Latin America and Caribbean 4,926 4,649 5,026 4,402 4,201 4,773 4,802 4,590 5,347 4,477 11 Asia 37,767 50,693 58,707 57,766 53.650 51,824 49,518 50,573 50,380 51,735 12 Africa 1,893 1,742 2,443 2.371 2,135 2,529 2,604 2,614 2,618 3,237 13 Other countries6 1,760 931 744 789 672 834 813 716 690 414 1. Includes the Bank for International Settlements. 5. Debt securities of U.S. government corporations and federally 2. Principally demand deposits, time deposits, bankers acceptances, sponsored agencies, and U.S. corporate stocks and bonds. commercial paper, negotiable time certificates of deposit, and borrowings 6. Includes countries in Oceania and Eastern Europe. under repurchase agreements. 3. Includes nonmarketable certificates of indebtedness (including those NOTE. Based on Treasury Department data and on data reported to payable in foreign currencies through 1974) and Treasury bills issued to the Treasury Department by banks (including Federal Reserve Banks) official institutions of foreign countries. and securities dealers in the United States. 4. Excludes notes issued to foreign official nonreserve agencies. Includes 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 IItteemm 11997766 11997777 11997788 Sept. Dec. Mar. June 1 Banks' own liabilities 781 925 2,235 1,772 2.235 1,933 1,986 2 Banks' own claims1 1,834 2,356 3.547 2,957 3,547 2,620 2,530 3 Deposits 1,103 941 1,672 1,375 1,672 1,139 1,345 4 Other claims 731 1,415 1,875 1,582 1,875 1,481 1,185 5 Claims of banks' domestic customers2 336677 444466 336677 447766 552211 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 1979 Holder and type of liability 1976 1977 1978 Feb. Mar. Apr. May June July? Aug.? 1 All foreigners 110,657 126,168 '167,050 '163,972 '166,594 '159,801 158,320 167,855 168,932 190,818 2 Banks' own liabilities 78,959 77,178 85,242 85,727 92,910 100,018 97,235 117,008 3 Demand deposits 16,803 18,996 19,201 17,201 16,696 18,367 18,091 19,326 19,088 18,898 4 Time deposits1 11,347 11,521 12,473 12,145 12,389 12,520 12,738 12,735 12,610 12,948 5 Other2 9,615 9,247 8,321 10,000 13,290 12,440 12,760 12,154 6 Own foreign offices 3 37,669 38,585 47,836 44,840 48,791 55,517 52,776 73,008 7 Banks' custody liabilities4 '88,091 '86,794 '81,352 '7,4074 65,410 67,837 71,697 73,811 8 U.S. Treasury bills and certificates 5 40,744 48,906 '68,202 '66,597 '60,709 '53,434 45,123 47,425 51,469 52,347 9 Other negotiable and readily transferable instruments 6 '17,396 '18,035 '18,474 '18,491 18,083 18,115 18,013 19,178 10 Other 2,493 2,162 2,169 2,150 2,203 2,296 2,215 2,285 11 Nonmonetary international and regional organizations7 5,714 3,274 2,617 2,095 2,364 2,300 2,757 2,851 3,437 3,551 12 Banks' own liabilities. 916 506 769 791 1,306 1,500 844 603 13 Demand deposits... 290 231 330 272 276 270 298 264 216 154 14 Time deposits1 205 139 94 102 99 100 85 87 79 87 15 Other2 492 131 394 422 923 1,150 549 362 16 Banks' custody liabilities4 1,701 1,589 1,595 1,509 1,451 1,350 2,593 2,948 17 U.S. Treasury bills and certificates 2,701 706 201 193 211 212 175 199 1,345 1,531 18 Other negotiable and readily transferable instruments6 1,499 1,395 1,382 1,294 1,274 1,151 1,247 1,416 19 Other 2 2 1 20 Official institutions8.. 54,956 65,822 '90,537 '88,825 '82,473 '76,262 69,131 71,653 75,031 75,257 21 Banks' own liabilities. 11,960 11,275 10,425 12,411 13,647 13,305 14,210 12,753 22 Demand deposits... 3,394 3,528 3,390 2,759 2,864 3,583 3,170 3,196 2,850 2,406 23 Time deposits1 2,321 1,797 2,546 2,365 2,524 2,491 2,572 2,506 2,590 2,587 24 Other2 6,024 6,151 5,036 6,337 7,905 7,604 8,770 7,759 25 Banks' custody liabilities4 '78,577 '77,551 '72,049 '63,850 55,484 58,347 60,821 62,504 26 U.S. Treasury bills and certificates 5 37,725 47,820 '67,415 '65,647 '59,774 '51,614 43,747 46,304 49,427 50,146 27 Other negotiable and readily transferable instruments6 '10,992 '11,849 '12,232 '12,197 11,667 12,003 11,343 12,306 28 Other 170 55 43 40 70 40 50 52 29 Banks9. 37,174 42,335 57,873 56,637 65,915 64,192 69,679 76,465 73,293 94,845 30 Banks' own liabilities 53,088 51,929 61,005 59,225 64,511 71,434 68,342 89,826 31 Unaffiliated foreign banks. 15,419 13,344 13,169 14,385 15,720 15,917 15,565 16,818 32 Demand deposits 9,104 10,933 11,239 9,426 9,349 10,202 10,265 11,138 11,361 11,731 33 Time deposits1 2,297 2,040 1,479 1,322 1,262 1,306 1,315 1,398 1,211 1,523 34 Other2 2,700 2,596 2,558 2,877 4,140 3,382 2,994 3,564 35 Own foreign offices3 37,669 38,585 47,836 44,840 48,791 55,517 52,776 73,008 36 Banks' custody liabilities4 4,785 4,708 4,910 4,967 5,168 5,031 4,951 5,019 37 U.S. Treasury bills and certificates 119 141 300 399 425 456 508 407 347 384 38 Other negotiable and readily transferable instruments6 2,425 2,336 2,421 2,489 2,593 2,480 2,556 2,508 39 Other 2,060 1,973 2,064 2,022 2,066 2,145 2,048 2,127 40 Other foreigners. 12,814 14,736 16,023 16,415 15,842 17,047 16,753 16,886 17,170 17,165 41 Banks' own liabilities. 12,995 13,469 13,044 13,299 13,446 13,778 13,839 13,826 42 Demand deposits... 4,015 4,304 4,242 4,744 4,207 4,312 4,358 4,729 4,662 4,607 43 Time deposits1 6,524 7,546 8,353 8,357 8,504 8,623 8,766 8,744 8,730 8,751 44 Other2 399 368 333 364 322 305 447 468 45 Banks'custody liabilities4 3,028 2,946 2,798 3,748 3,307 3,108 3,332 3,338 46 U.S. Treasury bills and certificates 198 240 285 358 299 1,152 693 516 350 285 47 Other negotiable and readily transferable instruments6 - 2,481 2,455 2,439 2,511 2,549 2,482 2,867 2,947 48 Other 262 133 60 85 66 111 115 106 49 MEMO: Negotiable time certificates of deposit held in custody for foreigners 11,007 10,992 '11,231 '11,133 10,809 10,633 10,704 11,075 1. Excludes negotiable time certificates of deposit, which are included 5. Includes nonmarketable certificates of indebtedness (including those in "Other negotiable and readily transferable instruments." Data for time payable in foreign currencies through 1974) and Treasury bills issued to deposits prior to April 1978 represent short-term only. 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 Developfiled 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 longterm securities, held by or through reporting banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • October 1979 3.16 LIABILITIES TO FOREIGNERS Continued 1979 Area and country 1976 1977 1978 Feb. Mar. Apr. May June July2* Aug.P 1 Total 110,657 126,168 167,050 '163,972 166,594 159,801 158,320 167,855 168,932 190,818 2 Foreign countries 104,943 122,893 r164,433 r161,878 164,230 157,501 155,563 165,004 165,494 187,267 3 Europe 47,076 60,295 r85,502 82,050 81,899 77,241 75,187 79,513 81,502 85,762 4 Austria 346 318 513 505 524 484 475 449 467 486 5 Belgium-Luxembourg 2,187 2,531 2,552 2,192 2,443 2,359 2,282 2,419 2,470 2,668 6 Denmark 356 770 1,946 2,074 2,131 1,596 1,526 1,165 1,560 1,412 7 Finland 416 323 346 357 361 367 399 457 466 508 8 France 4,876 5,269 9,208 8,207 8,891 9,291 9,755 9,594 9,614 9,981 9 Germany 6,241 7,239 17,286 13,868 12,997 9,364 7,619 8,492 10,724 10,426 10 Greece 403 603 826 761 671 656 673 684 760 695 11 Italy 3,182 6,857 7,674 8,056 8,142 8,939 9,751 9,656 8,458 9,676 12 Netherlands 3,003 2,869 2,402 2,786 2,766 2,816 2,889 2,628 2,355 2,626 13 Norway 782 944 1,271 1,445 1,572 1,477 1,456 1,348 1,263 1,320 14 Portugal 239 273 330 246 279 231 244 353 303 411 15 Spain 559 619 870 868 763 950 897 1,211 1,107 1,042 16 Sweden 1,692 2,712 3,121 2,656 2,520 2,596 2,524 2,437 2,227 2,368 17 Switzerland 9,460 12,343 18,612 19,810 18,563 15,587 13,730 15,932 16,744 15,718 18 Turkey 166 130 157 141 132 110 127 156 193 161 19 United Kingdom 10,018 14,125 14,379 13,861 15,370 16,005 16,679 18,079 18,760 22,438 20 Yugoslavia 189 232 254 184 176 207 184 151 159 149 21 Other Western Europe1 2,673 1,804 3,346 3,800 3,284 3,863 3,664 3,961 3,548 3,350 22 U.S.S.R 51 98 82 62 59 84 58 62 63 50 23 Other Eastern Europe2 236 236 325 171 258 258 254 277 260 277 24 Canada 4,659 4,607 6,966 6,813 8,044 8,819 7,980 6,674 7,610 8,377 25 Latin America and Caribbean 19,132 23,670 31,622 32,671 38,067 36,081 39,907 44,887 41,380 56,460 26 Argentina 1,534 1,416 1,484 1,789 1,534 1,483 1,886 1,891 1,693 1,757 27 Bahamas 2,770 3,596 6,743 7,695 13,078 10,014 11,164 16,383 13,020 24,047 28 Bermuda 218 321 428 464 375 351 345 402 339 340 29 Brazil 1,438 1,396 1,125 1,150 1,137 1,251 1,581 1,332 1,294 1,041 30 British West Indies 1,877 3,998 5,991 6,845 6,971 6,916 9,313 8,943 7,936 13,256 31 Chile 337 360 399 358 343 447 368 403 598 457 32 Colombia 1,021 1,221 1,756 1,867 1,925 2,074 2,192 2,402 2,292 2,381 33 Cuba 6 6 13 13 6 7 9 7 7 6 34 Ecuador 320 330 322 274 330 335 318 391 443 449 35 Guatemala3 416 386 339 360 318 319 319 320 36 Jamaica3 52 43 75 80 78 46 104 67 37 Mexico 2,870 2,876 3,417 3,158 3,178 3.234 3.215 3,392 3,632 3,662 38 Netherlands Antilles4 158 196 308 361 318 335 396 414 422 337 39 Panama 1,167 2,331 2,992 2,491 2,938 3.368 2,909 3,125 3,070 3,048 40 Peru 257 287 363 347 403 360 321 382 425 391 41 Uruguay 245 243 231 220 236 230 223 248 231 221 42 Venezuela 3,118 2,929 3.821 3,709 3,211 3,426 3,672 2,982 3,920 3,004 43 Other Latin America and Caribbean 1,797 2,167 1,760 1,501 1,669 1,809 1,601 1,825 1,636 1,675 44 Asia 29,766 30,488 r36,381 r36,403 r32,498 r31,223 28,227 29,513 30,614 32,005 45 Mainland 48 53 67 105 280 45 41 46 42 41 46 Taiwan 990 1,013 502 534 600 667 605 739 769 1,027 47 Hong Kong 894 1,094 1,256 1,390 1,254 1,459 1,496 1,555 1,452 1,571 48 India 638 961 790 838 857 929 1,016 940 873 704 49 Indonesia 340 410 449 357 479 567 394 409 509 316 50 Israel 392 559 674 598 608 673 650 706 621 625 51 Japan 14,363 14,616 21,927 21,769 18,110 14,896 12,262 12,572 13,104 13,095 52 Korea 438 602 795 827 748 728 995 809 816 825 53 Philippines 628 687 644 549 642 562 609 690 640 619 54 Thailand 277 264 427 307 277 343 302 413 307 330 55 Middle East oil-exporting countries 5 9,360 8,979 r7,437 ••7,828 1,394 r8,984 8,444 9,003 9,651 11,078 56 Other Asia 1,398 1,250 1,414 1,300 1,249 1,371 1,412 1,632 1,830 1,773 57 Africa 2,298 2,535 2,886 2,804 2,650 2,986 3.056 3,237 3,226 3,837 58 Egypt 333 404 404 278 329 359 297 306 378 302 59 Morocco 87 66 32 32 43 34 36 45 35 40 60 South Africa 141 174 168 207 242 246 206 316 196 174 61 Zaire 36 39 43 42 50 55 47 56 37 49 62 Oil-exporting countries6 1,116 1,155 1,525 1,549 1,256 1,554 1,523 1,566 1,699 2,461 63 Other Africa 585 698 715 697 729 738 946 948 881 810 64 Other countries 2,012 1,297 1,076 1,136 1,072 1,149 1,206 1,181 1,162 826 65 Australia 1,905 1,140 838 934 862 957 991 891 806 621 66 All other 107 158 239 202 211 192 215 290 355 205 67 Nonmonetary international and regional organizations 5,714 3,274 2,617 2,095 2,364 2,300 2,757 2,851 3,437 3,551 68 International 5,157 2,752 1,485 919 1,189 1,128 1,535 1,738 2,257 2,516 69 Latin American regional 267 278 808 865 872 872 892 829 917 793 70 Other regional? 290 245 324 311 303 300 330 284 263 242 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 1979 Area and country 11997766 11997777 11997788 Feb. Mar. Apr. May 1 Total 79,301 90,206 115,030 103,933 108,736 105,266 105,503 113,391 2 Foreign countries. 79,261 90,163 114,974 103,894 108,690 105,220 105,457 115,252 113,344 3 Europe 14,776 18,114 24,231 20,474 21,299 20,890 20,285 24,377 24,106 4 Austria 63 65 140 115 177 130 150 169 188 Belgium-Luxembourg 482 561 1,200 1.378 1.804 1.377 1.330 1,689 1,657 Denmark 133 173 254 170 166 204 168 140 137 Finland 199 172 305 264 297 250 184 186 226 France 1,549 2,082 3,742 2,286 2,921 2,907 2.701 3,517 3,205 Germany 509 644 900 717 907 806 792 843 939 Greece 279 206 164 169 192 170 155 167 130 Italy 993 1,334 1,504 1.395 1,311 1,420 1,440 1,332 1,196 Netherlands 315 338 680 619 581 532 531 516 797 Norway 136 162 299 252 206 242 196 200 181 Portugal 88 175 171 173 209 208 190 172 235 Spain 745 722 1.110 1,103 909 806 926 994 999 Sweden 206 218 537 388 312 300 231 247 401 Switzerland 379 564 1,283 970 1,068 878 959 1,071 1,027 Turkey 249 360 283 132 144 148 119 135 118 United Kingdom 7,033 8,964 10,156 8,886 8,575 8,684 8,546 11,272 10,697 Yugoslavia 234 311 363 409 448 475 492 535 541 Other Western Europe1 85 86 122 110 124 424 171 187 199 U.S.S.R 485 413 366 309 319 298 291 300 282 Other Eastern Europe2 613 566 652 628 628 633 713 704 953 24 Canada. 3,319 3,355 5,145 5,049 5,181 4,775 4,718 4,899 5,085 25 Latin America and Caribbean 38,879 45,850 56.850 50,379 54,149 52,055 52,584 57,328 53,988 26 Argentina 1,192 1,478 2,274 2.359 2.753 3.098 3,406 3,200 3,339 27 Bahamas 15,464 19,858 21.116 18,640 19,899 18.715 18,825 19,113 16,572 28 Bermuda 150 232 189 155 150 135 198 126 192 29 Brazil 4,901 4,629 6,251 6,254 6,291 6.198 6,274 6,121 6,164 30 British West Indies 5,082 6,481 9,505 5,122 7,435 5,524 4,895 9,221 6,515 31 Chile 597 675 968 939 964 970 1,058 1,089 1,120 32 Colombia 675 671 1,012 1,019 1,004 945 1,017 1,089 1,196 33 Cuba 13 10 * * 4 4 4 4 4 34 Ecuador 375 517 705 768 839 903 877 908 916 35 Guatemala 3 94 110 89 95 101 95 98 36 Jamaica3 40 48 61 63 64 40 47 37 Mexico 4,822 4,909 5,417 5,398 5,562 5,778 6,024 6,424 7,168 38 Netherlands Antilles'* 140 224 273 217 282 213 234 280 392 39 Panama 1,372 1,410 3,074 3,493 2,900 3,504 3,728 3,600 4,186 40 Peru 933 962 918 846 834 839 744 720 727 41 Uruguay 42 80 52 44 46 48 61 58 56 42 Venezuela 1,828 2,318 3,474 3.481 3.527 3,555 3,601 3,793 3,814 43 Other Latin America and Caribbean., 1,293 1,394 1,487 1,487 1.512 1,468 1,472 1,447 1,483 44 Asia 19,204 19,236 25,538 25,088 25,131 24,641 24,947 25,535 27,108 China 45 Mainland 3 10 4 13 16 20 22 9 20 46 Taiwan 1,344 1,719 1,499 1,767 1,841 1,823 1,812 1,882 1,889 47 Hong Kong 316 543 1,573 1,960 2,036 1,717 1,993 2,105 1,965 48 India 69 53 54 60 52 73 56 82 43 49 Indonesia 218 232 143 123 124 135 138 138 131 50 Israel 755 584 872 896 909 781 824 842 865 51 Japan 11,040 9,839 12,739 12,196 12,811 12,121 12,342 12,523 13,928 52 Korea 1,978 2,336 2,277 2,478 2,546 2,712 2,966 3,366 3,465 53 Philippines 719 594 680 692 660 710 705 678 743 54 Thailand 442 633 758 832 778 760 836 895 910 55 Middle East oil-exporting countries 5. 1,459 1,746 3,135 2,487 1,939 2,437 1,723 1,586 1,783 56 Other Asia 863 947 1,804 1,585 1,419 1,352 1,531 1,429 1,367 57 Africa 2,311 2,518 2,221 2,092 1,968 1,977 1,967 2,128 2,043 58 Egypt 126 119 107 83 73 104 121 178 115 59 Morocco 27 43 82 88 66 64 46 37 34 60 South Africa 957 1,066 860 760 701 680 719 745 745 61 Zaire 112 98 164 155 155 151 151 151 189 62 Oil-exporting countries6. 524 510 452 456 455 462 460 478 452 63 Other 565 682 556 550 518 516 471 539 508 64 Other countries. 772 1,090 988 813 961 882 956 984 1,013 65 Australia 597 905 877 704 830 755 789 779 765 66 All other 175 186 111 108 131 127 167 205 248 67 Nonmonetary international and regional organizations 7 40 43 56 39 46 46 46 45 47 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 • October 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 1979 TTyyppee ooff ccllaaiimm 11997766 11997777 11997788 Feb. Mar. Apr. May June July Aug.p 1 Total 7799,,330011 9900,,220066 111111111222222222666666666,,,,,,,,,111111111333333333999999999 111111111222222222000000000,,,,,,,,,333333333888888888444444444 '''''''''111111111222222222888888888,,,,,,,,,888888888444444444555555555 2 Banks' own claims on foreigners 111111111111111111555555555,,,,,,,,,000000000333333333000000000 111000333,,,999333333 111111111000000000888888888,,,,,,,,,777777777333333333666666666 111000555,,,222666666 111000555,,,555000333 '''''''''111111111111111111555555555,,,,,,,,,222222222999999999777777777 111111333,,,333999111 111222555,,,999444999 111111111000000000,,,,,,,,,000000000999999999555555555 111000,,,555000999 111111111000000000,,,,,,,,,777777777777777777444444444 111111,,,000000000 111000,,,555333444 '''''''''111111111111111111,,,,,,,,,222222222666666666888888888 111111,,,666111666 111222,,,333666666 444444444111111111,,,,,,,,,222222222111111111777777777 333555,,,555888333 333333333666666666,,,,,,,,,999999999333333333111111111 333666,,,222000666 333444,,,777000111 '''''''''333333333777777777,,,,,,,,,333333333444444444777777777 333666,,,222111888 444000,,,333444999 444444444000000000,,,,,,,,,333333333888888888111111111 333444,,,777555999 333333333777777777,,,,,,,,,333333333888888888888888888 333444,,,555000999 333555,,,555333000 '''''''''444444444111111111,,,,,,,,,555555555111111111222222222 333888,,,888666222 444555,,,111777666 6 Deposits 555555555,,,,,,,,,666666666666666666444444444 555,,,333999777 666666666,,,,,,,,,333333333444444444000000000 555...666999888 555,,,555666666 '''''''''777777777,,,,,,,,,333333333888888888444444444 666,,,999888888 777,,,999444666 7 Other 333333333444444444,,,,,,,,,777777777111111111666666666 222999,,,333666222 333333333111111111,,,,,,,,,000000000444444444888888888 222888,,,888111111 222999,,,999666444 '''''''''333333333444444444,,,,,,,,,111111111222222222888888888 333111,,,888777444 333777,,,222333000 222222222333333333,,,,,,,,,333333333333333333888888888 222333,,,000888111 222222222333333333,,,,,,,,,666666666444444444333333333 222333,,,555555222 222444,,,777333888 '''''''''222222222555555555,,,,,,,,,111111111666666666999999999 222666,,,666999555 222888,,,000555888 9 Claims of banks' domestic customers2 111111111111111111,,,,,,,,,111111111000000000999999999 '''''''''111111111111111111,,,,,,,,,666666666444444444888888888 111111111333333333,,,,,,,,,555555555444444444888888888 10 Deposits 999999999999999999444444444 111111111,,,,,,,,,111111111444444444333333333 111111111,,,,,,,,,444444444333333333888888888 11 Negotiable and readily transferable instruments 3 444444444,,,,,,,,,777777777666666666222222222 444444444,,,,,,,,,888888888666666666333333333 666666666,,,,,,,,,222222222333333333000000000 12 Outstanding collections and other claims4 55,,775566 66,,117766 555555555,,,,,,,,,333333333555555555333333333 555555555,,,,,,,,,666666666444444444111111111 555555555,,,,,,,,,888888888777777777999999999 13 MEMO* Customer liability on acceptances... 111111111444444444,,,,,,,,,999999999111111111777777777 111111111555555555,,,,,,,,,000000000999999999888888888 111111111666666666,,,,,,,,,888888888333333333888888888 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 5 1111,,667744 1155,,556633 1155,,774499 1166,,447722 1177,,334400 1144,,997766 nn..aa.. nn..aa.. 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 July 1979 owned subsidiaries of head office or parent foreign bank. BULLETIN, p. 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 FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1978 1979 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa June Sept. Dec. Mar. June Sept. 1 Total 5555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,444444444444444444447777777777777777777700000000000000000000 5555555555555555555599999999999999999999,,,,,,,,,,,,,,,,,,,,999999999999999999994444444444444444444488888888888888888888 7777777777777777777733333333333333333333,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555577777777777777777777 7777777777777777777711111111111111111111,,,,,,,,,,,,,,,,,,,,555555555555555555553333333333333333333399999999999999999999 7777777777777777777777777777777777777777,,,,,,,,,,,,,,,,,,,,333333333333333333333333333333333333333399999999999999999999 By borrower 2 Maturity of 1 year or less1 4444444444444444444444444444444444444444,,,,,,,,,,,,,,,,,,,,111111111111111111113333333333333333333388888888888888888888 4444444444444444444477777777777777777777,,,,,,,,,,,,,,,,,,,,000000000000000000009999999999999999999977777777777777777777 5555555555555555555588888888888888888888,,,,,,,,,,,,,,,,,,,,222222222222222222227777777777777777777777777777777777777777 5555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,333333333333333333335555555555555555555566666666666666666666 5555555555555555555599999999999999999999,,,,,,,,,,,,,,,,,,,,777777777777777777776666666666666666666633333333333333333333 3 Foreign public borrowers 33333333333333333333,,,,,,,,,,,,,,,,,,,,000000000000000000006666666666666666666677777777777777777777 33333333333333333333,,,,,,,,,,,,,,,,,,,,777777777777777777770000000000000000000022222222222222222222 44444444444444444444,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555588888888888888888888 44444444444444444444,,,,,,,,,,,,,,,,,,,,666666666666666666662222222222222222222277777777777777777777 44444444444444444444,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555511111111111111111111 4 All other foreigners 4444444444444444444411111111111111111111,,,,,,,,,,,,,,,,,,,,000000000000000000007777777777777777777711111111111111111111 4444444444444444444433333333333333333333,,,,,,,,,,,,,,,,,,,,333333333333333333339999999999999999999955555555555555555555 5555555555555555555533333333333333333333,,,,,,,,,,,,,,,,,,,,777777777777777777771111111111111111111199999999999999999999 5555555555555555555500000000000000000000,,,,,,,,,,,,,,,,,,,,777777777777777777772222222222222222222299999999999999999999 5555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,222222222222222222221111111111111111111122222222222222222222 5 Maturity of over 1 year1 1111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,333333333333333333333333333333333333333333333333333333333333 1111111111111111111122222222222222222222,,,,,,,,,,,,,,,,,,,,888888888888888888885555555555555555555500000000000000000000 1111111111111111111155555555555555555555,,,,,,,,,,,,,,,,,,,,222222222222222222228888888888888888888800000000000000000000 1111111111111111111166666666666666666666,,,,,,,,,,,,,,,,,,,,111111111111111111118888888888888888888833333333333333333333 1111111111111111111177777777777777777777,,,,,,,,,,,,,,,,,,,,555555555555555555557777777777777777777755555555555555555555 6 Foreign public borrowers 33333333333333333333,,,,,,,,,,,,,,,,,,,,222222222222222222222222222222222222222266666666666666666666 44444444444444444444,,,,,,,,,,,,,,,,,,,,222222222222222222223333333333333333333300000000000000000000 55555555555555555555,,,,,,,,,,,,,,,,,,,,333333333333333333332222222222222222222288888888888888888888 55555555555555555555,,,,,,,,,,,,,,,,,,,,999999999999999999993333333333333333333377777777777777777777 66666666666666666666,,,,,,,,,,,,,,,,,,,,333333333333333333337777777777777777777722222222222222222222 7 All other foreigners 88888888888888888888,,,,,,,,,,,,,,,,,,,,111111111111111111110000000000000000000077777777777777777777 88888888888888888888,,,,,,,,,,,,,,,,,,,,666666666666666666662222222222222222222200000000000000000000 99999999999999999999,,,,,,,,,,,,,,,,,,,,999999999999999999995555555555555555555522222222222222222222 1111111111111111111100000000000000000000,,,,,,,,,,,,,,,,,,,,222222222222222222224444444444444444444466666666666666666666 1111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,222222222222222222220000000000000000000044444444444444444444 By area Maturity of 1 year or less1 8 Europe 99999999999999999999,,,,,,,,,,,,,,,,,,,,666666666666666666663333333333333333333311111111111111111111 1111111111111111111100000000000000000000,,,,,,,,,,,,,,,,,,,,444444444444444444446666666666666666666633333333333333333333 1111111111111111111155555555555555555555,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111166666666666666666666 1111111111111111111122222222222222222222,,,,,,,,,,,,,,,,,,,,333333333333333333337777777777777777777733333333333333333333 1111111111111111111133333333333333333333,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999988888888888888888888 9 Canada 11111111111111111111,,,,,,,,,,,,,,,,,,,,555555555555555555559999999999999999999988888888888888888888 11111111111111111111,,,,,,,,,,,,,,,,,,,,999999999999999999994444444444444444444488888888888888888888 22222222222222222222,,,,,,,,,,,,,,,,,,,,666666666666666666667777777777777777777700000000000000000000 22222222222222222222,,,,,,,,,,,,,,,,,,,,555555555555555555551111111111111111111122222222222222222222 22222222222222222222,,,,,,,,,,,,,,,,,,,,666666666666666666667777777777777777777788888888888888888888 10 Latin American and Caribbean 1111111111111111111177777777777777777777,,,,,,,,,,,,,,,,,,,,222222222222222222222222222222222222222211111111111111111111 1111111111111111111188888888888888888888,,,,,,,,,,,,,,,,,,,,777777777777777777777777777777777777777755555555555555555555 2222222222222222222200000000000000000000....................888888888888888888885555555555555555555500000000000000000000 2222222222222222222211111111111111111111,,,,,,,,,,,,,,,,,,,,666666666666666666664444444444444444444477777777777777777777 2222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,999999999999999999993333333333333333333377777777777777777777 11 Asia 1111111111111111111133333333333333333333,,,,,,,,,,,,,,,,,,,,777777777777777777770000000000000000000077777777777777777777 1111111111111111111133333333333333333333,,,,,,,,,,,,,,,,,,,,777777777777777777778888888888888888888866666666666666666666 1111111111111111111177777777777777777777,,,,,,,,,,,,,,,,,,,,555555555555555555557777777777777777777755555555555555555555 1111111111111111111166666666666666666666,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999933333333333333333333 1111111111111111111188888888888888888888,,,,,,,,,,,,,,,,,,,,111111111111111111116666666666666666666666666666666666666666 12 Africa 11111111111111111111,,,,,,,,,,,,,,,,,,,,444444444444444444445555555555555555555577777777777777777777 11111111111111111111,,,,,,,,,,,,,,,,,,,,555555555555555555553333333333333333333355555555555555555555 11111111111111111111,,,,,,,,,,,,,,,,,,,,444444444444444444449999999999999999999966666666666666666666 11111111111111111111,,,,,,,,,,,,,,,,,,,,222222222222222222229999999999999999999900000000000000000000 11111111111111111111,,,,,,,,,,,,,,,,,,,,444444444444444444442222222222222222222233333333333333333333 13 All other2 555555555555555555552222222222222222222233333333333333333333 555555555555555555559999999999999999999911111111111111111111 555555555555555555556666666666666666666699999999999999999999 555555555555555555554444444444444444444411111111111111111111 555555555555555555556666666666666666666633333333333333333333 Maturity of over 1 year1 14 Europe 22222222222222222222,,,,,,,,,,,,,,,,,,,,999999999999999999992222222222222222222200000000000000000000 33333333333333333333,,,,,,,,,,,,,,,,,,,,111111111111111111110000000000000000000022222222222222222222 33333333333333333333,,,,,,,,,,,,,,,,,,,,111111111111111111115555555555555555555522222222222222222222 33333333333333333333,,,,,,,,,,,,,,,,,,,,111111111111111111110000000000000000000088888888888888888888 33333333333333333333,,,,,,,,,,,,,,,,,,,,444444444444444444448888888888888888888844444444444444444444 15 Canada 333333333333333333334444444444444444444444444444444444444444 777777777777777777779999999999999999999944444444444444444444 11111111111111111111,,,,,,,,,,,,,,,,,,,,444444444444444444442222222222222222222266666666666666666666 11111111111111111111,,,,,,,,,,,,,,,,,,,,444444444444444444445555555555555555555566666666666666666666 11111111111111111111,,,,,,,,,,,,,,,,,,,,222222222222222222221111111111111111111122222222222222222222 16 Latin America and Caribbean 55555555555555555555,,,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888888899999999999999999999 66666666666666666666,,,,,,,,,,,,,,,,,,,,888888888888888888885555555555555555555599999999999999999999 88888888888888888888,,,,,,,,,,,,,,,,,,,,444444444444444444445555555555555555555522222222222222222222 99999999999999999999,,,,,,,,,,,,,,,,,,,,333333333333333333333333333333333333333366666666666666666666 1111111111111111111100000000000000000000,,,,,,,,,,,,,,,,,,,,222222222222222222221111111111111111111144444444444444444444 17 Asia 11111111111111111111,,,,,,,,,,,,,,,,,,,,222222222222222222229999999999999999999988888888888888888888 11111111111111111111,,,,,,,,,,,,,,,,,,,,333333333333333333330000000000000000000055555555555555555555 11111111111111111111,,,,,,,,,,,,,,,,,,,,444444444444444444440000000000000000000011111111111111111111 11111111111111111111,,,,,,,,,,,,,,,,,,,,444444444444444444447777777777777777777733333333333333333333 11111111111111111111,,,,,,,,,,,,,,,,,,,,888888888888888888887777777777777777777711111111111111111111 18 Africa 666666666666666666663333333333333333333311111111111111111111 555555555555555555558888888888888888888800000000000000000000 666666666666666666663333333333333333333366666666666666666666 666666666666666666662222222222222222222299999999999999999999 666666666666666666661111111111111111111133333333333333333333 19 All other2 222222222222222222225555555555555555555522222222222222222222 222222222222222222221111111111111111111111111111111111111111 222222222222222222221111111111111111111144444444444444444444 111111111111111111118888888888888888888800000000000000000000 111111111111111111118888888888888888888822222222222222222222 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 Area or Country 1975 1976 June Sept. Dec. Mar. June 7 Sept. Dec. 1 Total 167.0 207.7 217.8 226.7 239.4 247.2 245.7 246.7 265.3 2 G-10 countries and Switzerland 88.0 100.1 104.1 108.8 115.3 116.6 112.8 113.7 124.9 3 Belgium-Luxembourg 5.3 6.1 6.3 7.1 8.4 8.3 8.3 8.4 9.0 4 France 8.5 10.0 10.6 10.5 11.0 11.4 11.4 11.7 12.2 5 Germany 7.8 8.7 8.2 8.6 9.6 9.0 9.1 9.7 11.4 6 Italy 5.2 5.8 6.4 6.0 6.5 6.0 6.4 6.0 6.6 7 Netherlands 2.8 2.8 3.1 3.0 3.5 3.4 3.4 3.5 4.4 8 Sweden 1.0 1.2 1.7 1.9 1.9 2.0 2.1 2.2 2.1 9 Switzerland 2.4 3.0 3.0 3.3 3.3 4.0 4.1 4.3 5.4 10 United Kingdom 36.3 41.5 41.4 44.1 46.5 46.5 45.0 44.4 47.2 11 Canada 3.8 5.1 6.4 6.6 5.8 6.9 5.1 4.9 5.9 12 Japan 14.9 15.9 17.0 17.6 18.8 19.1 17.9 18.6 20.7 13 Other developed countries 10.7 15.1 16.9 18.1 18.6 20.5 19.3 18.7 19.2 14 Austria .7 1.2 1.2 1.3 1.3 1.5 1.5 1.5 1.7 15 Denmark .6 1.0 1.4 1.5 1.6 1.6 1.7 1.9 2.0 16 Finland .9 1.1 1.2 1.2 1.2 1.1 1.0 1.2 17 Greece 1.4 1.7 2.0 2.2 2.7 2.3 2.2 2.3 18 Norway 1.4 1.5 1.7 1.8 1.9 1.9 2.1 2.1 2. 1 19 Portugal .3 .4 .5 .6 .6 .7 .6 .5 .6 20 Spain 1.9 2.8 3.2 3.5 3.6 3.6 3.6 3.5 3.4 21 Turkey .6 1.3 1.4 1.4 1.5 1.5 1.4 1.5 1.5 22 Other Western Europe .6 .7 .8 1.2 .9 1.4 1.2 1.0 1.0 23 South Africa 1.2 2.2 2.3 2.3 2.4 2.5 2.4 2.2 2.0 24 Australia 1.3 1.2 1.5 1.5 1.4 1.9 1.4 1.3 1.4 25 Oil-exporting countries2 6.9 12.6 15.0 16.5 17.6 19.2 19.1 20.4 22.8 26 Ecuador .4 .7 .9 1.1 1.1 1.3 1.4 1.6 1.6 27 Venezuela 2.3 4.1 4.6 5.1 5.5 5.5 5.6 6.2 7.2 28 Indonesia 1.6 2.2 2.2 2.2 2.2 2.1 1.9 1.9 2.0 29 Middle East countries 1.6 4.2 5.5 6.3 6.9 8.3 8.3 8.7 9.5 30 African countries 1.0 1.4 1.8 1.9 1.9 2.0 1.9 2.0 2.5 31 Non-oil developing countries 34.2 43.1 45.8 47.6 50.0 49.9 48.9 49.5 52.4 Latin America 32 Argentina 1.7 1.9 2.1 2.4 2.9 3.0 3.0 2.9 3.0 33 Brazil 8.0 11.1 11.8 11.8 12.7 13.0 13.3 14.0 14.9 34 Chile .5 .7 .8 .9 1.3 1.3 1.6 35 Colombia 1.2 1.2 1.2 1.3 1.3 1.3 1.3 1.4 36 Mexico 9.0 12.2 12.6 11.9 11.2 11.0 10.7 10.8 37 Peru 1.4 2.0 1.9 1.9 1.7 1.8 1.8 1.7 38 Other Latin America 2.6 2.7 2.4 2.5 2.7 3.5 3.3 3.4 3.6 Asia China 39 Mainland 40 Taiwan 1.7 2.3 2.7 2.9 3.1 2.5 2.4 2.4 2.9 41 India .2 .2 .2 .3 .3 .3 .2 .3 .2 42 Israel .9 1.0 .8 .7 .9 .8 .7 .7 1.0 43 Korea (South) 2.4 3.1 3.4 3.6 3.9 3.7 3.6 3.5 3.9 44 Malaysia 3 .3 .5 .7 .7 .7 .6 .6 .6 .6 45 Philippines 1.7 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.8 46 Thailand .7 .7 .9 1.7 1.1 1.1 1.1 1.2 47 Other Asia .4 .4 .4 .3 .4 .3 .3 .2 Africa 48 Egypt .4 .4 .4 .3 .3 .3 .4 .4 49 Morocco .2 .3 .4 .5 .4 .5 .5 .6 50 Zaire .3 .2 .3 .3 .3 .3 .2 .2 .2 51 Other Africa 4 .5 .6 1.0 1.2 1.2 1.4 1.2 1.3 1.4 52 Eastern Europe 3.7 5.2 5.5 5.5 6.5 6.3 6.4 6.6 6.9 53 U.S.S.R 1.0 1.5 1.5 1.5 1.6 1.4 1.4 1.4 1.3 54 Yugoslavia .6 .8 .9 1.0 1.1 1.2 1.3 1.3 1.5 55 Other 2.1 2.8 3.1 3.0 3.8 3.7 3.7 3.9 4.1 56 Offshore banking centers 19.4 26.2 25.4 25.3 26.1 29.0 31.1 29.2 30.0 57 Bahamas 7.3 11.8 9.5 9.9 9.8 11.3 11.8 11.1 9.9 58 Bermuda .5 .5 .5 .5 .6 .6 .7 .7 .7 59 Cayman Islands and other British West Indies 2.5 3.8 4.8 4.3 3.8 4.5 6.3 6.2 6.9 60 Netherlands Antilles .6 .6 .5 .6 .7 .7 .6 .6 .8 61 Panama 2.6 2.7 2.9 2.8 3.1 3.2 3.2 3.1 2.9 62 Lebanon .2 .1 .2 .2 .2 .1 .1 63 Hong Kong 1.6 2.3 2.8 3A 3.7 4.0 4!l 4.0 4.3 64 Singapore 3.8 4.4 4.2 3.9 3.7 4.0 3.8 2.9 3.9 65 Others 5 .1 .5 .5 .5 .5 .5 66 Miscellaneous and unallocated® 4.1 5.4 5.0 5.3 5.7 8.6 9.1 1. The banking offices covered by these data are the U.S. offices and Oman, Qatar, Saudi Arabia, and United Arab Emirates in addition to foreign branches of U.S.-owned banks and of U.S. subsidiaries of foreign- countries shown individually. owned banks. Offices not covered include (1) U.S. agencies and branches 3. Foreign branch claims only through December 1976. of foreign banks, and (2) foreign subsidiaries of U.S. banks. To minimize 4. Excludes Liberia. duplication, the data are adjusted to exclude the claims on foreign branches 5. Foreign branch claims only. held by a U.S. office or another foreign branch of the same banking 6. Includes New Zealand, Liberia, and international and regional institution. The data in this table combine foreign branch claims in table organizations. 3.13 (the sum of lines 7 through 10) with the claims of U.S. offices in table 7. For June 1978 and subsequent dates, the claims of the U.S. offices 3.17 (excluding those held by agencies and branches of foreign banks in this table include only banks' own claims payable in dollars. For and those constituting claims on own foreign branches). However, see earlier dates the claims of the U.S. offices also include customer claims also footnote 2. and foreign currency claims (amounting in June 1978 to $10 billion). 2. Includes Algeria,Bahrain, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • October 1979 3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1979 1979 Country or area 1977 1978 A Ja u n g . . - f Feb. Mar. Apr. May June Julyf Aug. Holdings (end of period)4 1 Estimated total1 38,640 44,938 45,667 47,529 48,131 47,218 47,494 48,991 49,571 2 Foreign countries1 33,894 39,817 40,963 42,932 43,177 43,055 43,454 44,544 44,975 3 Europe i 13,936 17,072 18,502 20,172 20,593 20,667 21,047 22,213 22,557 4 Belgium-Luxembourg 19 19 19 19 19 20 24 24 24 5 Germany1 3,168 8,705 8,860 10,216 10,812 10,828 10,751 10,781 10,951 6 Netherlands 911 1,358 1,517 1,587 1,637 1,672 1,695 1,655 1,577 7 Sweden 100 285 355 360 415 479 484 481 525 8 Switzerland 497 977 1,508 1,537 1,510 1,458 1,582 1,843 2,048 9 United Kingdom 8,888 5,373 5,823 5,991 5,735 5,697 6,016 6,938 6,895 10 Other Western Europe 349 354 420 461 464 513 496 491 538 11 Eastern Europe 4 12 Canada 288 152 146 166 226 216 227 232 233 13 Latin America and Caribbean 551 416 417 418 397 387 387 537 539 14 Venezuela 199 144 183 183 183 183 183 183 183 15 Other Latin American and Caribbean 183 110 72 72 52 42 42 192 192 16 Netherlands Antilles 170 162 162 162 162 162 162 162 165 17 Asia 18,745 21,488 21,210 21,488 21,273 21,097 21,103 20,874 20,957 18 Japan 6,860 11,528 12,422 12,729 12,982 13,014 13,040 13,090 12,818 19 Africa 362 691 691 691 691 691 691 691 691 20 Allother 11 -3 -3 -3 -3 -3 -3 -3 -4 21 Nonmonetary international and regional organizations 4,746 5,121 4,704 4,597 4,954 4,163 4,040 4,447 4,596 22 International 4,646 5,089 4,666 4,560 4,915 4,114 3,993 4,400 4,551 23 Latin American regional 100 33 38 38 38 48 48 48 46 Transactions (net purchases, or sales (—), during period) 24 Total1 22,843 6,297 4,634 -543 1,862 602 -913 277 1,497 580 25 Foreign countries1 21,130 5,921 5,158 -378 1,968 246 -122 399 1,090 431 26 Official institutions 20,377 3,734 2,093 -517 524 242 -149 298 1,033 513 27 Other foreign1 753 2,188 3,065 141 1,443 4 27 101 57 -83 28 Nonmonetary international and regional organizations 1,713 375 -523 -165 -106 356 -791 -121 407 149 MEMO: Oil-exporting countries 29 Middle East 2 4,451 -1,785 -1,618 -693 — 31 -452 -190 8 -193 394 30 Africa 3 -181 329 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 1979 AAsssseettss 11997766 11997777 11997788 Mar. Apr. May June July Aug. Sept.f 352 424 367 303 388 407 326 372 325 347 Assets held in custody 66,532 91,962 117,126 107,854 99,674 91,327 95,301 r99,004 98,794 100,383 16,414 15,988 15,463 15,426 15,406 15,381 15,356 15,322 15,296 15,294 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 1979 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 1977 1978 A J u a g n . - P Feb. Mar. | Apr. May June July? Aug.p U.S. corporate securities Stocks 1 Foreign purchases 14,155 20.142 13,806 1,384 1,941 1,614 1 .578 1,860 1,766 2,301 2 Foreign sales 11,479 17,723 12,640 1,264 1,437 1,520 1,386 1,794 1,774 2,163 3 Net purchases, or sales (—) 2,676 2,420 1,166 120 504 94 191 66 -8 137 4 Foreign countries 2,661 2,466 1,145 104 501 94 191 67 -8 135 5 Europe 1,006 1,283 186 52 104 -2 136 11 -42 -66 6 France 40 47 190 16 33 31 48 41 18 9 7 Germany 291 620 -133 20 -2 -59 -1 -16 -19 -39 8 Netherlands 22 -22 -96 -15 -19 -10 -7 -15 8 -2 9 Switzerland 152 -585 -70 12 -12 -17 18 -3 -52 -86 10 United Kingdom 613 1.230 429 19 109 52 74 5 -12 97 11 Canada 65 74 277 -6 57 30 47 33 30 78 12 Latin America and Caribbean 127 151 46 -25 36 22 -18 -28 -17 43 13 Middle East* 1,390 781 392 46 242 48 20 15 -7 44 14 Other Asia 59 187 250 30 61 -3 9 39 32 33 15 Africa 5 -13 -10 6 1 -3 -2 -3 -4 -4 16 Other countries 8 3 5 1 1 2 -1 -1 1 7 17 Nonmonetary international and regional organizations 15 -46 21 16 3 1 * -1 * 2 Bonds2 18 Foreign purchases 7,739 7.955 5,787 453 581 589 863 1,081 853 726 19 Foreign sales 3,560 5,509 5,153 547 489 378 922 793 647 672 20 Net purchases, or sales ( —) 4,179 2,446 634 -94 92 210 -59 288 206 54 21 Foreign countries 4,083 2,037 885 28 79 106 87 254 207 68 22 Europe 1,850 915 711 110 1 139 121 163 143 -5 23 France -34 30 -1 * 13 -2 -1 8 -34 -3 24 Germany -20 68 71 13 4 19 6 24 -27 -10 25 Netherlands 72 19 -158 -10 -27 -20 -37 -32 -9 -19 26 Switzerland 94 -100 -19 6 12 8 -41 -1 -4 -8 1,690 930 777 93 27 134 151 169 232 24 28 Canada 141 102 80 10 33 6 4 * 8 8 29 Latin America and Caribbean 64 78 81 9 24 9 7 -10 11 8 30 Middle Easti 1,695 810 -108 -106 25 -61 -73 52 40 50 31 Other Asia 338 131 120 4 -3 14 28 48 5 8 32 Africa -6 -1 1 1 * * * * * * 33 Other countries * 1 * * 1 -1 * * * * 34 Nonmonetary international and regional 96 409 -251 -122 13 104 -146 34 -1 -14 Foreign securities 35 Stocks, net purchases, or sales (—) -410 527 -153 -28 2 13 67 -18 -67 -132 36 Foreign purchases 2,255 3,666 2,811 232 331 369 554 403 329 329 37 Foreign sales 2,665 3,139 2,964 260 329 356 487 421 396 462 38 Bonds, net purchases, or sales (—) -5,096 -4,017 -2,553 -322 -39 -21 5 -689 -346 -541 8,040 11,044 8,206 942 1,182 879 851 1,011 984 1,575 40 Foreign sales 13,136 15,061 10,759 1,264 1,220 900 847 1,700 1,329 2,116 41 Net purchases, or sales (—) of stocks and bonds.. -5,506 -3,490 -2,705 -349 -37 -8 71 -707 -412 -674 42 Foreign countries -3,949 -3,313 -2,075 -141 -19 -21 70 -425 -436 -590 43 Europe -1,100 -40 -1,140 -42 3 -174 -31 -144 -305 -322 44 Canada -2,404 -3,237 -1,149 -184 -228 10 85 -221 -178 -127 45 Latin America and Caribbean -82 201 378 70 54 55 26 53 30 30 46 Asia -97 350 -169 19 152 84 -14 -114 16 -172 47 Africa 2 -441 -8 -5 -8 2 4 4 * -1 48 Other countries -267 -146 13 2 7 2 1 -4 2 2 49 Nonmonetary international and regional organizations -1,557 •-177 -631 -209 -17 13 1 -282 24 -83 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 • October 1979 3.24 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States • Millions of dollars, end of period 1978 1979 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997766 11997777 June Sept. Dec. Mar. June Sept. Dec. 1 Total 11110000,,,,000099999999 11111111,,,,000088885555 11111111,,,,888877770000 11112222,,,,777788886666 111111111111111111111111111111111111111111111111111111333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888 111111111111111111111111111111111111111111111111111111333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,333333333333333333333333333333333333333333333333333333777777777777777777777777777777777777777777777777777777000000000000000000000000000000000000000000000000000000 2 Payable in dollars 9999,,,,333399990000 11110000,,,,222288884444 11111111,,,,000044444444 11111111,,,,999955555555 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666 111111111111111111111111111111111111111111111111111111000000000000000000000000000000000000000000000000000000,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999999333333333333333333333333333333333333333333333333333333000000000000000000000000000000000000000000000000000000 3 Payable in foreign currencies1 777700009999 888800001111 888822225555 888833331111 222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777777777777777777777777777777777777222222222222222222222222222222222222222222222222222222333333333333333333333333333333333333333333333333333333 222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444000000000000000000000000000000000000000000000000000000 By type 555555555555555555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,444444444444444444444444444444444444444444444444444444000000000000000000000000000000000000000000000000000000777777777777777777777777777777777777777777777777777777 555555555555555555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,222222222222222222222222222222222222222222222222222222333333333333333333333333333333333333333333333333333333888888888888888888888888888888888888888888888888888888 5 Payable in dollars 333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,444444444444444444444444444444444444444444444444444444666666666666666666666666666666666666666666666666666666555555555555555555555555555555555555555555555555555555 333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,444444444444444444444444444444444444444444444444444444111111111111111111111111111111111111111111111111111111999999999999999999999999999999999999999999999999999999 6 Payable in foreign currencies 111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999999444444444444444444444444444444444444444444444444444444222222222222222222222222222222222222222222222222222222 111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888888888888888888888111111111111111111111111111111111111111111111111111111999999999999999999999999999999999999999999999999999999 7 Commercial liabilities 888888888888888888888888888888888888888888888888888888,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,444444444444444444444444444444444444444444444444444444888888888888888888888888888888888888888888888888888888111111111111111111111111111111111111111111111111111111 888888888888888888888888888888888888888888888888888888,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111333333333333333333333333333333333333333333333333333333111111111111111111111111111111111111111111111111111111 8 Trade payables 333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999999333333333333333333333333333333333333333333333333333333000000000000000000000000000000000000000000000000000000 333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,444444444444444444444444444444444444444444444444444444333333333333333333333333333333333333333333333333333333111111111111111111111111111111111111111111111111111111 9 Advance receipts and other liabilities 444444444444444444444444444444444444444444444444444444,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555222222222222222222222222222222222222222222222222222222 444444444444444444444444444444444444444444444444444444,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777777777777777777777777777777777777000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 10 Payable in dollars 777777777777777777777777777777777777777777777777777777,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777777777777777777777777777777777777000000000000000000000000000000000000000000000000000000111111111111111111111111111111111111111111111111111111 777777777777777777777777777777777777777777777777777777,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555555555555555555111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 777777777777777777777777777777777777777777777777777777888888888888888888888888888888888888888888888888888888000000000000000000000000000000000000000000000000000000 666666666666666666666666666666666666666666666666666666222222222222222222222222222222222222222222222222222222000000000000000000000000000000000000000000000000000000 By area or country Financial liabilities 333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,444444444444444444444444444444444444444444444444444444666666666666666666666666666666666666666666666666666666777777777777777777777777777777777777777777777777777777 333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,222222222222222222222222222222222222222222222222222222888888888888888888888888888888888888888888888888888888111111111111111111111111111111111111111111111111111111 222222222222222222222222222222222222222222222222222222888888888888888888888888888888888888888888888888888888777777777777777777777777777777777777777777777777777777 222222222222222222222222222222222222222222222222222222555555555555555555555555555555555555555555555555555555444444444444444444444444444444444444444444444444444444 111111111111111111111111111111111111111111111111111111555555555555555555555555555555555555555555555555555555777777777777777777777777777777777777777777777777777777 111111111111111111111111111111111111111111111111111111333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333 333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333444444444444444444444444444444444444444444444444444444 222222222222222222222222222222222222222222222222222222999999999999999999999999999999999999999999999999999999333333333333333333333333333333333333333333333333333333 16 Netherlands 333333333333333333333333333333333333333333333333333333666666666666666666666666666666666666666666666666666666000000000000000000000000000000000000000000000000000000 333333333333333333333333333333333333333333333333333333999999999999999999999999999999999999999999999999999999111111111111111111111111111111111111111111111111111111 17 Switzerland 222222222222222222222222222222222222222222222222222222000000000000000000000000000000000000000000000000000000777777777777777777777777777777777777777777777777777777 111111111111111111111111111111111111111111111111111111888888888888888888888888888888888888888888888888888888777777777777777777777777777777777777777777777777777777 18 United Kingdom 111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999999444444444444444444444444444444444444444444444444444444777777777777777777777777777777777777777777777777777777 111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888888888888888888888555555555555555555555555555555555555555555555555555555222222222222222222222222222222222222222222222222222222 19 Canada 222222222222222222222222222222222222222222222222222222000000000000000000000000000000000000000000000000000000555555555555555555555555555555555555555555555555555555 222222222222222222222222222222222222222222222222222222333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333 20 Latin America and Caribbean 999999999999999999999999999999999999999999999999999999777777777777777777777777777777777777777777777777777777111111111111111111111111111111111111111111111111111111 999999999999999999999999999999999999999999999999999999666666666666666666666666666666666666666666666666666666999999999999999999999999999999999999999999999999999999 21 Bahamas 444444444444444444444444444444444444444444444444444444222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222 444444444444444444444444444444444444444444444444444444000000000000000000000000000000000000000000000000000000777777777777777777777777777777777777777777777777777777 22 Bermuda 555555555555555555555555555555555555555555555555555555666666666666666666666666666666666666666666666666666666 444444444444444444444444444444444444444444444444444444111111111111111111111111111111111111111111111111111111 23 Brazil 111111111111111111111111111111111111111111111111111111000000000000000000000000000000000000000000000000000000 111111111111111111111111111111111111111111111111111111333333333333333333333333333333333333333333333333333333 24 British West Indies 111111111111111111111111111111111111111111111111111111222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222 111111111111111111111111111111111111111111111111111111333333333333333333333333333333333333333333333333333333222222222222222222222222222222222222222222222222222222 25 Mexico 777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777 777777777777777777777777777777777777777777777777777777333333333333333333333333333333333333333333333333333333 26 Venezuela 444444444444444444444444444444444444444444444444444444666666666666666666666666666666666666666666666666666666 555555555555555555555555555555555555555555555555555555222222222222222222222222222222222222222222222222222222 27 Asia 777777777777777777777777777777777777777777777777777777555555555555555555555555555555555555555555555555555555444444444444444444444444444444444444444444444444444444 777777777777777777777777777777777777777777777777777777444444444444444444444444444444444444444444444444444444555555555555555555555555555555555555555555555555555555 28 Japan 666666666666666666666666666666666666666666666666666666777777777777777777777777777777777777777777777777777777111111111111111111111111111111111111111111111111111111 666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666777777777777777777777777777777777777777777777777777777 29 Middle East oil-exporting countries2 444444444444444444444444444444444444444444444444444444888888888888888888888888888888888888888888888888888888 333333333333333333333333333333333333333333333333333333666666666666666666666666666666666666666666666666666666 30 Africa 555555555555555555555555555555555555555555555555555555 555555555555555555555555555555555555555555555555555555 31 Oil-exporting countries 3 222222222222222222222222222222222222222222222222222222 111111111111111111111111111111111111111111111111111111 32 All other < 555555555555555555555555555555555555555555555555555555 555555555555555555555555555555555555555555555555555555 Commercial liabilities 33 Europe 222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999999222222222222222222222222222222222222222222222222222222777777777777777777777777777777777777777777777777777777 222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888888888888888888888000000000000000000000000000000000000000000000000000000999999999999999999999999999999999999999999999999999999 34 Belgium-Luxembourg 777777777777777777777777777777777777777777777777777777333333333333333333333333333333333333333333333333333333 666666666666666666666666666666666666666666666666666666888888888888888888888888888888888888888888888888888888 35 France 333333333333333333333333333333333333333333333333333333111111111111111111111111111111111111111111111111111111222222222222222222222222222222222222222222222222222222 333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333666666666666666666666666666666666666666666666666666666 36 Germany 555555555555555555555555555555555555555555555555555555111111111111111111111111111111111111111111111111111111999999999999999999999999999999999999999999999999999999 333333333333333333333333333333333333333333333333333333999999999999999999999999999999999999999999999999999999000000000000000000000000000000000000000000000000000000 37 Netherlands 222222222222222222222222222222222222222222222222222222000000000000000000000000000000000000000000000000000000666666666666666666666666666666666666666666666666666666 111111111111111111111111111111111111111111111111111111999999999999999999999999999999999999999999999999999999333333333333333333333333333333333333333333333333333333 38 Switzerland 333333333333333333333333333333333333333333333333333333222222222222222222222222222222222222222222222222222222111111111111111111111111111111111111111111111111111111 333333333333333333333333333333333333333333333333333333444444444444444444444444444444444444444444444444444444333333333333333333333333333333333333333333333333333333 39 United Kingdom 777777777777777777777777777777777777777777777777777777666666666666666666666666666666666666666666666666666666000000000000000000000000000000000000000000000000000000 888888888888888888888888888888888888888888888888888888111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 40 Canada 666666666666666666666666666666666666666666666666666666555555555555555555555555555555555555555555555555555555333333333333333333333333333333333333333333333333333333 666666666666666666666666666666666666666666666666666666000000000000000000000000000000000000000000000000000000111111111111111111111111111111111111111111111111111111 41 Latin America 111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000000000333333333333333333333333333333333333333333333333333333111111111111111111111111111111111111111111111111111111 111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111000000000000000000000000000000000000000000000000000000222222222222222222222222222222222222222222222222222222 42 Bahamas 222222222222222222222222222222222222222222222222222222555555555555555555555555555555555555555555555555555555 111111111111111111111111111111111111111111111111111111666666666666666666666666666666666666666666666666666666 43 Bermuda 999999999999999999999999999999999999999999999999999999555555555555555555555555555555555555555555555555555555 444444444444444444444444444444444444444444444444444444000000000000000000000000000000000000000000000000000000 44 Brazil 777777777777777777777777777777777777777777777777777777555555555555555555555555555555555555555555555555555555 666666666666666666666666666666666666666666666666666666222222222222222222222222222222222222222222222222222222 45 British West Indies 555555555555555555555555555555555555555555555555555555333333333333333333333333333333333333333333333333333333 888888888888888888888888888888888888888888888888888888999999999999999999999999999999999999999999999999999999 46 Mexico 111111111111111111111111111111111111111111111111111111333333333333333333333333333333333333333333333333333333000000000000000000000000000000000000000000000000000000 222222222222222222222222222222222222222222222222222222444444444444444444444444444444444444444444444444444444000000000000000000000000000000000000000000000000000000 47 Venezuela 333333333333333333333333333333333333333333333333333333000000000000000000000000000000000000000000000000000000666666666666666666666666666666666666666666666666666666 333333333333333333333333333333333333333333333333333333555555555555555555555555555555555555555555555555555555999999999999999999999999999999999999999999999999999999 48 Asia 222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999999444444444444444444444444444444444444444444444444444444222222222222222222222222222222222222222222222222222222 222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,666666666666666666666666666666666666666666666666666666222222222222222222222222222222222222222222222222222222777777777777777777777777777777777777777777777777777777 49 Japan 444444444444444444444444444444444444444444444444444444333333333333333333333333333333333333333333333333333333000000000000000000000000000000000000000000000000000000 444444444444444444444444444444444444444444444444444444111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 50 Middle East oil-exporting countries2 111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555555555555555555444444444444444444444444444444444444444444444444444444333333333333333333333333333333333333333333333333333333 111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111777777777777777777777777777777777777777777777777777777 51 Africa 777777777777777777777777777777777777777777777777777777222222222222222222222222222222222222222222222222222222444444444444444444444444444444444444444444444444444444 777777777777777777777777777777777777777777777777777777555555555555555555555555555555555555555555555555555555444444444444444444444444444444444444444444444444444444 52 Oil-exporting countries 3 333333333333333333333333333333333333333333333333333333111111111111111111111111111111111111111111111111111111333333333333333333333333333333333333333333333333333333 333333333333333333333333333333333333333333333333333333444444444444444444444444444444444444444444444444444444555555555555555555555555555555555555555555555555555555 53 All other* 222222222222222222222222222222222222222222222222222222000000000000000000000000000000000000000000000000000000444444444444444444444444444444444444444444444444444444 222222222222222222222222222222222222222222222222222222333333333333333333333333333333333333333333333333333333999999999999999999999999999999999999999999999999999999 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 July 1979 BULLETIN, 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 A Millions of dollars, end of period 1978 1979 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997766 11997777 June Sept. Dec. Mar. June Sept. Dec. 1 Total 11119999,,,,333355550000 22221111,,,,222299998888 22223333,,,,222222229999 22223333,,,,222266660000 22222222222222222222222222222222222222222222222222222222227777777777777777777777777777777777777777777777777777777777,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111133333333333333333333333333333333333333333333333333333333338888888888888888888888888888888888888888888888888888888888 22222222222222222222222222222222222222222222222222222222229999999999999999999999999999999999999999999999999999999999,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888888888888888888888888855555555555555555555555555555555555555555555555555555555559999999999999999999999999999999999999999999999999999999999 2 Payable in dollars 11118888,,,,333300000000 11119999,,,,888888880000 22221111,,,,666666665555 22221111,,,,222299992222 22222222222222222222222222222222222222222222222222222222224444444444444444444444444444444444444444444444444444444444,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111166666666666666666666666666666666666666666666666666666666660000000000000000000000000000000000000000000000000000000000 22222222222222222222222222222222222222222222222222222222227777777777777777777777777777777777777777777777777777777777,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000000000000033333333333333333333333333333333333333333333333333333333336666666666666666666666666666666666666666666666666666666666 1111,,,,000055550000 1111,,,,444411118888 1111,,,,555566664444 1111,,,,999966668888 2222222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999999999977777777777777777777777777777777777777777777777777777777778888888888888888888888888888888888888888888888888888888888 2222222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888888888888888888888888822222222222222222222222222222222222222222222222222222222223333333333333333333333333333333333333333333333333333333333 By type 11111111111111111111111111111111111111111111111111111111115555555555555555555555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888888888888888888888888844444444444444444444444444444444444444444444444444444444443333333333333333333333333333333333333333333333333333333333 11111111111111111111111111111111111111111111111111111111119999999999999999999999999999999999999999999999999999999999,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000000000000099999999999999999999999999999999999999999999999999999999997777777777777777777777777777777777777777777777777777777777 11111111111111111111111111111111111111111111111111111111110000000000000000000000000000000000000000000000000000000000,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777777777777777777777777777777777777777733333333333333333333333333333333333333333333333333333333335555555555555555555555555555555555555555555555555555555555 11111111111111111111111111111111111111111111111111111111113333333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999999999988888888888888888888888888888888888888888888888888888888889999999999999999999999999999999999999999999999999999999999 6 Payable in dollars 9999999999999999999999999999999999999999999999999999999999,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,666666666666666666666666666666666666666666666666666666666699999999999999999999999999999999999999999999999999999999994444444444444444444444444444444444444444444444444444444444 11111111111111111111111111111111111111111111111111111111113333333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000000000000088888888888888888888888888888888888888888888888888888888887777777777777777777777777777777777777777777777777777777777 1111111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000000000000044444444444444444444444444444444444444444444444444444444441111111111111111111111111111111111111111111111111111111111 999999999999999999999999999999999999999999999999999999999900000000000000000000000000000000000000000000000000000000003333333333333333333333333333333333333333333333333333333333 5555555555555555555555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111100000000000000000000000000000000000000000000000000000000008888888888888888888888888888888888888888888888888888888888 5555555555555555555555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111100000000000000000000000000000000000000000000000000000000008888888888888888888888888888888888888888888888888888888888 3333333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555555555555555555555522222222222222222222222222222222222222222222222222222222228888888888888888888888888888888888888888888888888888888888 3333333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555555555555555555555577777777777777777777777777777777777777777777777777777777773333333333333333333333333333333333333333333333333333333333 1111111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555555555555555555555588888888888888888888888888888888888888888888888888888888880000000000000000000000000000000000000000000000000000000000 1111111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555555555555555555555533333333333333333333333333333333333333333333333333333333335555555555555555555555555555555555555555555555555555555555 11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,222222222222222222222222222222222222222222222222222222222299999999999999999999999999999999999999999999999999999999995555555555555555555555555555555555555555555555555555555555 11111111111111111111111111111111111111111111111111111111110000000000000000000000000000000000000000000000000000000000,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777777777777777777777777777777777777777766666666666666666666666666666666666666666666666666666666662222222222222222222222222222222222222222222222222222222222 11111111111111111111111111111111111111111111111111111111110000000000000000000000000000000000000000000000000000000000,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,666666666666666666666666666666666666666666666666666666666644444444444444444444444444444444444444444444444444444444447777777777777777777777777777777777777777777777777777777777 11111111111111111111111111111111111111111111111111111111110000000000000000000000000000000000000000000000000000000000,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000008888888888888888888888888888888888888888888888888888888888 666666666666666666666666666666666666666666666666666666666644444444444444444444444444444444444444444444444444444444447777777777777777777777777777777777777777777777777777777777 777777777777777777777777777777777777777777777777777777777755555555555555555555555555555555555555555555555555555555554444444444444444444444444444444444444444444444444444444444 11111111111111111111111111111111111111111111111111111111110000000000000000000000000000000000000000000000000000000000,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999999999933333333333333333333333333333333333333333333333333333333338888888888888888888888888888888888888888888888888888888888 11111111111111111111111111111111111111111111111111111111110000000000000000000000000000000000000000000000000000000000,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,333333333333333333333333333333333333333333333333333333333377777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777777 333333333333333333333333333333333333333333333333333333333355555555555555555555555555555555555555555555555555555555557777777777777777777777777777777777777777777777777777777777 333333333333333333333333333333333333333333333333333333333388888888888888888888888888888888888888888888888888888888885555555555555555555555555555555555555555555555555555555555 By area or country Financial claims 5555555555555555555555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000000000000055555555555555555555555555555555555555555555555555555555554444444444444444444444444444444444444444444444444444444444 5555555555555555555555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333 44444444444444444444444444444444444444444444444444444444448888888888888888888888888888888888888888888888888888888888 66666666666666666666666666666666666666666666666666666666663333333333333333333333333333333333333333333333333333333333 111111111111111111111111111111111111111111111111111111111177777777777777777777777777777777777777777777777777777777779999999999999999999999999999999999999999999999999999999999 111111111111111111111111111111111111111111111111111111111188888888888888888888888888888888888888888888888888888888880000000000000000000000000000000000000000000000000000000000 555555555555555555555555555555555555555555555555555555555522222222222222222222222222222222222222222222222222222222229999999999999999999999999999999999999999999999999999999999 222222222222222222222222222222222222222222222222222222222266666666666666666666666666666666666666666666666666666666663333333333333333333333333333333333333333333333333333333333 20 Netherlands 111111111111111111111111111111111111111111111111111111111100000000000000000000000000000000000000000000000000000000007777777777777777777777777777777777777777777777777777777777 99999999999999999999999999999999999999999999999999999999991111111111111111111111111111111111111111111111111111111111 21 Switzerland 99999999999999999999999999999999999999999999999999999999998888888888888888888888888888888888888888888888888888888888 99999999999999999999999999999999999999999999999999999999996666666666666666666666666666666666666666666666666666666666 22 United Kingdom 3333333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888888888888888888888888855555555555555555555555555555555555555555555555555555555550000000000000000000000000000000000000000000000000000000000 4444444444444444444444444444444444444444444444444444444444,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,444444444444444444444444444444444444444444444444444444444400000000000000000000000000000000000000000000000000000000009999999999999999999999999999999999999999999999999999999999 23 Canada 4444444444444444444444444444444444444444444444444444444444,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,444444444444444444444444444444444444444444444444444444444455555555555555555555555555555555555555555555555555555555554444444444444444444444444444444444444444444444444444444444 5555555555555555555555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111133333333333333333333333333333333333333333333333333333333330000000000000000000000000000000000000000000000000000000000 24 Latin America and Caribbean 5555555555555555555555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111199999999999999999999999999999999999999999999999999999999997777777777777777777777777777777777777777777777777777777777 7777777777777777777777777777777777777777777777777777777777,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555555555555555555555566666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666 25 Bahamas 2222222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888888888888888888888888833333333333333333333333333333333333333333333333333333333336666666666666666666666666666666666666666666666666666666666 4444444444444444444444444444444444444444444444444444444444,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111122222222222222222222222222222222222222222222222222222222224444444444444444444444444444444444444444444444444444444444 26 Bermuda 88888888888888888888888888888888888888888888888888888888880000000000000000000000000000000000000000000000000000000000 66666666666666666666666666666666666666666666666666666666662222222222222222222222222222222222222222222222222222222222 27 Brazil 111111111111111111111111111111111111111111111111111111111155555555555555555555555555555555555555555555555555555555551111111111111111111111111111111111111111111111111111111111 111111111111111111111111111111111111111111111111111111111133333333333333333333333333333333333333333333333333333333337777777777777777777777777777777777777777777777777777777777 28 British West Indies 1111111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,222222222222222222222222222222222222222222222222222222222233333333333333333333333333333333333333333333333333333333331111111111111111111111111111111111111111111111111111111111 2222222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,333333333333333333333333333333333333333333333333333333333399999999999999999999999999999999999999999999999999999999994444444444444444444444444444444444444444444444444444444444 29 Mexico 111111111111111111111111111111111111111111111111111111111144444444444444444444444444444444444444444444444444444444446666666666666666666666666666666666666666666666666666666666 111111111111111111111111111111111111111111111111111111111144444444444444444444444444444444444444444444444444444444445555555555555555555555555555555555555555555555555555555555 30 Venezuela 111111111111111111111111111111111111111111111111111111111144444444444444444444444444444444444444444444444444444444449999999999999999999999999999999999999999999999999999999999 111111111111111111111111111111111111111111111111111111111144444444444444444444444444444444444444444444444444444444442222222222222222222222222222222222222222222222222222222222 31 Asia 999999999999999999999999999999999999999999999999999999999911111111111111111111111111111111111111111111111111111111118888888888888888888888888888888888888888888888888888888888 888888888888888888888888888888888888888888888888888888888822222222222222222222222222222222222222222222222222222222225555555555555555555555555555555555555555555555555555555555 32 Japan 333333333333333333333333333333333333333333333333333333333300000000000000000000000000000000000000000000000000000000006666666666666666666666666666666666666666666666666666666666 222222222222222222222222222222222222222222222222222222222200000000000000000000000000000000000000000000000000000000006666666666666666666666666666666666666666666666666666666666 33 Middle East oil-exporting countries2 11111111111111111111111111111111111111111111111111111111118888888888888888888888888888888888888888888888888888888888 11111111111111111111111111111111111111111111111111111111117777777777777777777777777777777777777777777777777777777777 34 Africa 111111111111111111111111111111111111111111111111111111111188888888888888888888888888888888888888888888888888888888880000000000000000000000000000000000000000000000000000000000 222222222222222222222222222222222222222222222222222222222200000000000000000000000000000000000000000000000000000000003333333333333333333333333333333333333333333333333333333333 35 Oil-exporting countries3 11111111111111111111111111111111111111111111111111111111110000000000000000000000000000000000000000000000000000000000 22222222222222222222222222222222222222222222222222222222226666666666666666666666666666666666666666666666666666666666 36 All other4. . 44444444444444444444444444444444444444444444444444444444441111111111111111111111111111111111111111111111111111111111 33333333333333333333333333333333333333333333333333333333339999999999999999999999999999999999999999999999999999999999 Commercial claims 37 Europe 3333333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999999999933333333333333333333333333333333333333333333333333333333335555555555555555555555555555555555555555555555555555555555 3333333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888888888888888888888888800000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 38 Belgium-Luxembourg 111111111111111111111111111111111111111111111111111111111144444444444444444444444444444444444444444444444444444444445555555555555555555555555555555555555555555555555555555555 111111111111111111111111111111111111111111111111111111111177777777777777777777777777777777777777777777777777777777772222222222222222222222222222222222222222222222222222222222 39 France.... 666666666666666666666666666666666666666666666666666666666600000000000000000000000000000000000000000000000000000000007777777777777777777777777777777777777777777777777777777777 444444444444444444444444444444444444444444444444444444444488888888888888888888888888888888888888888888888888888888887777777777777777777777777777777777777777777777777777777777 40 Germany 333333333333333333333333333333333333333333333333333333333399999999999999999999999999999999999999999999999999999999992222222222222222222222222222222222222222222222222222222222 444444444444444444444444444444444444444444444444444444444499999999999999999999999999999999999999999999999999999999995555555555555555555555555555555555555555555555555555555555 41 Netherlands . . 222222222222222222222222222222222222222222222222222222222255555555555555555555555555555555555555555555555555555555556666666666666666666666666666666666666666666666666666666666 222222222222222222222222222222222222222222222222222222222277777777777777777777777777777777777777777777777777777777770000000000000000000000000000000000000000000000000000000000 42 Switzerland 222222222222222222222222222222222222222222222222222222222211111111111111111111111111111111111111111111111111111111113333333333333333333333333333333333333333333333333333333333 222222222222222222222222222222222222222222222222222222222255555555555555555555555555555555555555555555555555555555553333333333333333333333333333333333333333333333333333333333 43 United Kingdom 888888888888888888888888888888888888888888888888888888888800000000000000000000000000000000000000000000000000000000002222222222222222222222222222222222222222222222222222222222 666666666666666666666666666666666666666666666666666666666677777777777777777777777777777777777777777777777777777777778888888888888888888888888888888888888888888888888888888888 44 Canada 1111111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111100000000000000000000000000000000000000000000000000000000002222222222222222222222222222222222222222222222222222222222 1111111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111100000000000000000000000000000000000000000000000000000000006666666666666666666666666666666666666666666666666666666666 45 Latin America and Caribbean 2222222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555555555555555555555533333333333333333333333333333333333333333333333333333333335555555555555555555555555555555555555555555555555555555555 2222222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,444444444444444444444444444444444444444444444444444444444466666666666666666666666666666666666666666666666666666666661111111111111111111111111111111111111111111111111111111111 46 Bahamas 111111111111111111111111111111111111111111111111111111111100000000000000000000000000000000000000000000000000000000009999999999999999999999999999999999999999999999999999999999 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111117777777777777777777777777777777777777777777777777777777777 47 Bermuda 222222222222222222222222222222222222222222222222222222222211111111111111111111111111111111111111111111111111111111115555555555555555555555555555555555555555555555555555555555 222222222222222222222222222222222222222222222222222222222244444444444444444444444444444444444444444444444444444444441111111111111111111111111111111111111111111111111111111111 48 Brazil 666666666666666666666666666666666666666666666666666666666622222222222222222222222222222222222222222222222222222222224444444444444444444444444444444444444444444444444444444444 444444444444444444444444444444444444444444444444444444444488888888888888888888888888888888888888888888888888888888889999999999999999999999999999999999999999999999999999999999 49 British West Indies 9999999999999999999999999999999999999999999999999999999999 11111111111111111111111111111111111111111111111111111111110000000000000000000000000000000000000000000000000000000000 50 Mexico 555555555555555555555555555555555555555555555555555555555511111111111111111111111111111111111111111111111111111111113333333333333333333333333333333333333333333333333333333333 444444444444444444444444444444444444444444444444444444444499999999999999999999999999999999999999999999999999999999997777777777777777777777777777777777777777777777777777777777 51 Venezuela 222222222222222222222222222222222222222222222222222222222299999999999999999999999999999999999999999999999999999999993333333333333333333333333333333333333333333333333333333333 222222222222222222222222222222222222222222222222222222222277777777777777777777777777777777777777777777777777777777773333333333333333333333333333333333333333333333333333333333 52 Asia 3333333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000000000000088888888888888888888888888888888888888888888888888888888887777777777777777777777777777777777777777777777777777777777 2222222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777777777777777777777777777777777777777744444444444444444444444444444444444444444444444444444444448888888888888888888888888888888888888888888888888888888888 53 Japan 999999999999999999999999999999999999999999999999999999999977777777777777777777777777777777777777777777777777777777778888888888888888888888888888888888888888888888888888888888 888888888888888888888888888888888888888888888888888888888899999999999999999999999999999999999999999999999999999999994444444444444444444444444444444444444444444444444444444444 54 Middle East oil-exporting countries2 777777777777777777777777777777777777777777777777777777777711111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666665555555555555555555555555555555555555555555555555555555555 55 Africa 444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444449999999999999999999999999999999999999999999999999999999999 444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444445555555555555555555555555555555555555555555555555555555555 56 Oil-exporting countries3 111111111111111111111111111111111111111111111111111111111133333333333333333333333333333333333333333333333333333333337777777777777777777777777777777777777777777777777777777777 111111111111111111111111111111111111111111111111111111111133333333333333333333333333333333333333333333333333333333332222222222222222222222222222222222222222222222222222222222 57 All other4 111111111111111111111111111111111111111111111111111111111188888888888888888888888888888888888888888888888888888888887777777777777777777777777777777777777777777777777777777777 222222222222222222222222222222222222222222222222222222222200000000000000000000000000000000000000000000000000000000001111111111111111111111111111111111111111111111111111111111 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 July 1979 BULLETIN, p. 550. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • October 1979 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Sept. 30, 1979 Rate on Sept. 30, 1979 Rate on Sept. 30, 1979 Country Country Country Per- Month Per- Month Percent effective cent effective cent Argentina 18.0 Feb. 1972 France 9.5 Aug. 1977 Norway 7.0 Austria 3.75 Jan. 1979 Germany, Fed. Rep. of. 5.0 July 1979 Sweden 8.0 Belgium 9.0 June 1979 Italy 10.5 Sept. 1978 Switzerland 1.0 Brazil 33.0 Nov. 1978 Japan 5.25 July 1979 United Kingdom 14.0 Canada 12.25 Sept. 1979 Mexico 4.5 June 1942 Venezuela 7.5 Denmark 11.00 Sept. 1979 Netherlands 8.0 July 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 1979 Country, or type 1976 1977 1978 Apr. May June July Aug. Sept. 1 Eurodollars 5.58 6.03 8.74 10.60 10.75 10.52 10.87 11.53 12.64 2 United Kingdom 11.35 8.07 9.18 11.64 11.76 13.02 13.87 14.06 14.11 3 Canada 9.39 7.47 8.52 11.18 11.26 11.17 11.29 11.78 11.89 4 Germany 4.19 4.30 3.67 5.50 5.89 6.40 6.77 7.04 7.82 5 Switzerland 1.45 2.56 0.74 0.93 1.54 1.51 1.19 1.67 1.94 6 Netherlands 7.02 4.73 6.53 7.23 7.82 8.55 9.53 9.51 9.82 7 France 8.65 9.20 8.10 6.96 7.63 8.63 9.90 10.85 11.67 8 Italy 16.32 14.26 11.40 11.52 11.37 11 .27 11.46 11.50 11.51 9 Belgium 10.25 6.95 7.14 7.63 8. 16 9.09 11.18 11.42 11.88 10 Japan 7.70 6.22 4.75 5.13 5.25 5.46 6.26 7.00 7.00 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 CCoouunnttrryy//ccuurrrreennccyy 11997766 11997777 11997788 Apr. May June July Aug. Sept. 1 Australia/dollar 122.15 110.82 114.41 110.85 110.57 111.11 112.83 112.83 112.63 2 Austria/schilling 5.5744 6.0494 6.8958 7.1862 7.1222 7.2081 7.4628 7.4786 7.7211 3 Belgium/franc 2.5921 2.7911 3.1809 3.3271 3.2732 3.3048 3.4240 3.4140 3.4684 4 Canada/dollar 101.41 94.112 87.729 87.235 86.534 85.296 85.920 85.425 85.814 5 Denmark/krone 16.546 16.658 18.156 18.958 18.562 18.401 19.072 18.964 19.279 6 Finland/markka 25.938 24.913 24.337 24.976 24.974 25.250 26.040 26.075 26.242 7 France/franc 20.942 20.344 22.218 22.967 22.691 22.914 23.535 23.491 23.826 8 Germany/deutsche mark... 39.737 43.079 49.867 52.745 52.422 53.084 54.817 54.666 55.758 9 India/rupee 11.148 11.406 12.207 12.191 12.066 12.317 12.651 12.484 12.289 10 Ireland/pound 180.48 174.49 191.84 201.97 198.43 200.01 206.79 205.79 209.18 11 Italy/lira .12044 .11328 .11782 .11858 .11744 .11828 .12192 .12219 .12326 12 Japan/yen .33741 .37342 .47981 .46241 .45797 .45750 .46189 .45890 .44963 13 Malaysia/ringgit 39.340 40.620 43.210 45.023 44.934 45.474 46.422 46.363 46.382 14 Mexico/peso 6.9161 4.4239 4.3896 4.3780 4.3805 4.3767 4.3767 4.3804 4.3858 15 Netherlands/guilder 37.846 40.752 46.284 48.794 48.132 48.374 49.821 49.805 50.635 16 New Zealand/dollar 99.115 96.893 103.64 104.96 104.37 103.29 102.04 101.40 100.28 17 Norway/krone 18.327 18.789 19.079 19.444 19.270 19.398 19.824 19.877 20.080 18 Portugal/escudo 3.3159 2.6234 2.2782 2.0482 2.0214 2.0192 2.0551 2.0332 2.0297 19 South Africa/rand 114.85 114.99 115.01 117.94 118.22 118.31 118.46 119.38 119.91 20 Spain/peseta 1.4958 1.3287 1.3073 1.4679 1.5131 1.5131 1.5118 1.5132 1.5135 21 Sri Lanka/rupee 11.908 11.964 6.3834 6.4455 6.4239 6.4059 6.3786 6.4174 6.4126 22 Sweden/krona 22.957 22.383 22.139 22.772 22.755 23.028 23.687 23.693 23.860 23 Switzerland/franc 40.013 41.714 56.283 58.220 57.894 58.884 60.650 60.349 62.087 24 United Kingdom/pound... 180.48 174.49 191.84 207.34 205.87 211.19 225.98 223.68 219.66 MEMO: 25 United States/dollar i 105.57 103.31 92.39 89.49 90.31 89.56 86.93 87.24 86.73 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 PAUL A. VOLCKER, Chairman HENRY C. WALLICH FREDERICK H. SCHULTZ, Vice Chairman PHILIP E. COLDWELL OFFICE OF BOARD MEMBERS OFFICE OF STAFF DIRECTOR FOR MONETARY AND FINANCIAL POLICY JOSEPH R. COYNE, Assistant to the Board KENNETH A. GUENTHER, Assistant to the Board STEPHEN H. AXILROD, Staff Director JAY PAUL BRENNEMAN, Special Assistant to the EDWARD C. ETTIN, Deputy Staff Director Board MURRAY ALTMANN, Assistant to the Board FRANK O'BRIEN, JR., Special Assistant to the PETER M. KEIR, Assistant to the Board Board STANLEY J. SIGEL, Assistant to the Board JOSEPH S. SIMS, Special Assistant to the Board NORMAND R. V. BERNARD, Special Assistant to DONALD J. WINN, Special Assistant to the Board the Board LEGAL DIVISION DIVISION OF RESEARCH AND STATISTICS NEAL L. PETERSEN, General Counsel JAMES L. KICHLINE, Director JOSEPH S. ZEISEL, Deputy Director ROBERT E. MANNION, Deputy General Counsel JOHN H. KALCHBRENNER, Associate Director CHARLES R. MCNEILL, Assistant to the General JOHN J. MINGO, Senior Research Division Counsel Officer J. VIRGIL MATTINGLY, Assistant General ELEANOR J. STOCK WELL, Senior Research Counsel Division Officer GILBERT T. SCHWARTZ, Assistant General JAMES M. BRUNDY, Associate Research Division Counsel Officer ROBERT A. EISENBEIS, Associate Research Division Officer OFFICE OF THE SECRETARY JARED J. ENZLER, Associate Research Division Officer THEODORE E. ALLISON, Secretary J. CORTLAND G. PERET, Associate Research GRIFFITH L. GARWOOD, Deputy Secretary Division Officer *WILLI AM N. MCDONOUGH, Assistant Secretary MICHAEL J. PRELL, Associate Research Division RICHARD H. PUCKETT, Manager, Regulatory Officer Improvement Project HELMUT F. WENDEL, Associate Research Division Officer ROBERT M. FISHER, Assistant Research Division DIVISION OF CONSUMER AFFAIRS Officer FREDERICK M. STRUBLE, Assistant Research JANET O. HART, Director Division Officer NATHANIEL E. BUTLER, Associate Director STEPHEN P. TAYLOR, Assistant Research JERAULD C. KLUCKMAN, Associate Director Division Officer ANNE GEARY, Assistant Director LEVON H. GARABEDIAN, Assistant Director DIVISION OF INTERNATIONAL FINANCE DIVISION OF BANKING SUPERVISION AND REGULATION EDWIN M. TRUMAN, Director ROBERT F. GEMMILL, Associate Director JOHN E. RYAN, Director GEORGE B. HENRY, Associate Director f FREDERICK C. SCHADRACK, Deputy Director CHARLES J. SIEGMAN, Associate Director FREDERICK R. DAHL, Associate Director SAMUEL PIZER, Senior International Division WILLIAM TAYLOR, Associate Director Officer WILLIAM W. WILES, Associate Director JEFFREY R. SHAFER, Associate International JACK M. EGERTSON, Assistant Director Division Officer ROBERT A. JACOBSEN, Assistant Director DALE W. HENDERSON, Assistant International DON E. KLINE, Assistant Director Division Officer ROBERT S. PLOTKIN, Assistant Director LARRY J. PROMISEL, Assistant International THOMAS A. SIDMAN, Assistant Director Division Officer SAMUEL H. TALLEY, Assistant Director RALPH W. SMITH, JR., Assistant International Division Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71 and Official Staff J. CHARLES PARTEE EMMETT J. RICE NANCY H. TEETERS OFFICE OF OFFICE OF STAFF DIRECTOR FOR STAFF DIRECTOR FOR MANAGEMENT FEDERAL RESERVE BANK ACTIVITIES JOHN M. DENKLER, Staff Director WILLIAM H. WALLACE, Staff Director EDWARD T. MULRENIN, Assistant Staff Director HARRY A. GUINTER, Assistant Director for JOSEPH W. DANIELS, SR., Director of Equal Contingency Planning Employment Opportunity DIVISION OF FEDERAL RESERVE DIVISION OF DATA PROCESSING BANK OPERATIONS CHARLES L. HAMPTON, Director JAMES R. KUDLINSKI, Director BRUCE M. BEARDSLEY, Associate Director CLYDE H. FARNSWORTH, JR., Deputy Director UYLESS D. BLACK, Assistant Director WALTER ALTHAUSEN, Assistant Director GLENN L. CUMMINS, Assistant Director CHARLES W. BENNETT, Assistant Director ROBERT J. ZEMEL, Assistant Director BRIAN M. CAREY, Assistant Director LORIN S. MEEDER, Assistant Director P. D. RING, Assistant Director DIVISION OF PERSONNEL RAYMOND L. TEED, Assistant Director DAVID L. SHANNON, Director JOHN R. WEIS, Assistant Director CHARLES W. WOOD, Assistant Director OFFICE OF THE CONTROLLER JOHN KAKALEC, Controller DIVISION OF SUPPORT SERVICES DONALD E. ANDERSON,Director JOHN L. GRIZZARD, Associate Director WALTER W. KREIMANN, Associate Director JOHN D. SMITH, Assistant Director *On loan from the Federal Reserve Bank of Boston. tOn loan from the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 Federal Reserve Bulletin • November 1979 FOMC and Advisory Councils FEDERAL OPEN MARKET COMMITTEE PAUL A. VOLCKER, Chairman JOHN BALLES MONROE KIMBREL FREDERICK H. SCHULTZ ROBERT BLACK ROBERT MAYO NANCY H. TEETERS PHILIP E. COLDWELL J. CHARLES PARTEE HENRY C. WALLICH EMMETT J. RICE MURRAY ALTMANN, Secretary EDWARD C. ETTIN, Associate Economist NORMAND R. V. BERNARD, Assistant Secretary GEORGE B. HENRY, Associate Economist NEAL L. PETERSEN, General Counsel PETER M. KEIR, Associate Economist JAMES H. OLTMAN, Deputy General Counsel MICHAEL KERAN, Associate Economist ROBERT E. MANNION, Assistant General Counsel JAMES L. KICHLINE, Associate Economist STEPHEN H. AXILROD, Economist JAMES PARTHEMUS, Associate Economist ALAN R. HOLMES, Adviser for Market Operations KARL Sc HELD, Associate Economist HARRY BRANDT, Associate Economist EDWIN M. TRUMAN, Associate Economist RICHARD G. DAVIS, Associate Economist JOSEPH S. ZEISEL, Associate Economist PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account SCOTT E. PARDEE, Manager for Foreign Operations, System Open Market Account FEDERAL ADVISORY COUNCIL J. W. MCLEAN, TENTH DISTRICT, President HENRY S. WOODBRIDCIE, 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 MERLE E. GILLIAND, FOURTH DISTRICT CLARENCE G. FRAME, NINTH DISTRICT J. OWEN COLE, FIFTH DISTRICT JAMES D. BERRY, ELEVENTH DISTRICT CHAUNCEY E. SCHMIDT, TWELFTH DISTRICT HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Associate Secretary CONSUMER ADVISORY COUNCIL WILLIAM D. WARREN, LOS AI igeles, California, Chairman MARC IA A. HAKAIA, Omaha Nebraska, Vice Chairman ROLAND E. BRANDEL, San Francisco, California PERC Y 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. SAUI NIER, New York, New York CARI FEISENFELD, New York, New York HENRY B. SCHECHTER, Washington, D. C. JEAN A. Fox, Pittsburgh, Pennsylvania E. G. SCHUHART II, Amarillo, Texas RICHARD H. HOI.TON, Berkeley, California BLAIR C. SHIC K, Cambridge, Massachusetts EDNA DECOURSEY JOHNSON, Baltimore, Mary- THOMAS R. SWAN, Portland, Maine land ANNE GARY TAYLOR, Alexandria, Virginia RICHARD F. KERR, Cincinnati, Ohio RICHARD A. VAN WINKLE, Salt Lake City, Utah ROBERT J. KLEIN, New York, New York RICHARD D. WAGNER, Simsbury, Connecticut HARVEY M. KUHNLEY, Minneapolis, Minnesota MARY W. WALKER, Monroe, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 73 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Robert M. Solow Frank E. Morris Robert P. Henderson James A. Mcintosh NEW YORK* 10045 Robert H. Knight Vacancy 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 Maceo A. Sloan Robert P. Black Steven Muller 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. Boy kin El Paso 79999 A. J. Losee Joel L. Koonce Jr. 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. Remitserve 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 pp. $1.00 each; 10 or more to one address, $.85 FEDERAL RESERVE BULLETIN. Monthly. $20.00 per 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 MARKET. 1969. 48 pp. $.25 each; 10 or more to each. Elsewhere, $24.00 per year or $2.50 each. one address, $.20 each. BANKING AND MONETARY STATISTICS, 1914-1941. JOINT TREASURY-FEDERAL RESERVE STUDY OF THE (Reprint of Part 1 only) 1976. 682 pp. $5.00. GOVERNMENT SECURITIES MARKET: STAFF STUD- BANKING AND MONETARY STATISTICS, 1941-1970. IES—PART 1. 1970. 86 pp. $.50 each; 10 or more 1976. 1,168 pp. $15.00. to one address, $.40 each. PART 2. 1971. 153 pp. ANNUAL STATISTICAL DIGEST 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 PROCEall others $5.00 each. DURES—STAFF STUDIES. 1971. 218 pp. $2.00 each; 10 or more to one address, $1.75 each. 1972-76. 1977. 338 pp. $10.00 per copy. REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT 1973-77. 1978. 361 pp. $12.00 per copy. MECHANISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. FEDERAL RESERVE CHART BOOK. Issued four times a 173 pp. Vol. 3. 1972. 220 pp. Each volume $3.00; year in February, May, August, and November. 10 or more to one address, $2.50 each. Subscription includes one issue of Historical Chart THE ECONOMETRICS OF PRICE DETERMINATION CON- Book. $7.00 per year or $2.00 each in the United FERENCE, October 30-31, 1970, Washington, D.C. States, its possessions, Canada, and Mexico. Else- 1972. 397 pp. Cloth ed. $5.00 each; 10 or more where, $10.00 per year or $3.00 each. to one address, $4.50 each. Paper ed. $4.00 each; HISTORICAL CHART BOOK. Issued annually in Sept. 10 or more to one address, $3.60 each. Subscription to 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. 1972. 487 pp. $4.00 each; 10 or more to one its possessions, Canada, and Mexico; 10 or more address, $3.60 each. to one address, $1.00 each. Elsewhere, $1.50 each. LENDING FUNCTIONS OF THE FEDERAL RESERVE CAPITAL MARKET DEVELOPMENTS. Weekly. $15.00 per BANKS. 1973. 271 pp. $3.50 each; 10 or more year or $.40 each in the United States, its possesto one address, $3.00 each. sions, Canada, and Mexico; 10 or more of same IMPROVING THE MONETARY AGGREGATES: REPORT OF issue to one address, $13.50 per year or $.35 each. THE ADVISORY COMMITTEE ON MONETARY STA- Elsewhere, $20.00 per year or $.50 each. TISTICS. 1976. 43 pp. $1.00 each; 10 or more to SELECTED INTEREST AND EXCHANGE RATES—WEEKLY one address, $.85 each. SERIES OF CHARTS. Weekly. $15.00 per year OF ANNUAL PERCENTAGE RATE TABLES (Truth in Lend- $.40 each in the United States, its possessions, ing—Regulation Z) Vol. I (Regular Transactions). Canada, and Mexico; 10 or more of same issue 1969. 100 pp. Vol. II (Irregular Transactions). to one address, $13.50 per year or $.35 each. 1969. 116 pp. Each volume $1.00, 10 or more Elsewhere, $20.00 per year or $.50 each. of same volume to one address, $.85 each. THE FEDERAL RESERVE ACT, as amended through De- FEDERAL RESERVE MEASURES OF CAPACITY AND CAcember 1976, with an appendix containing provi- PACITY UTILIZATION. 1978. 40 pp. $1.75 each, sions of certain other statutes affecting the Federal 10 or more to one address, $1.50. each. Reserve System. 307 pp. $2.50. THE BANK HOLDING COMPANY MOVEMENT TO 1978: REGULATIONS OF THE BOARD OF GOVERNORS OF THE A COMPENDIUM. 1978. 289 pp. $2.50 each, 10 FEDERAL RESERVE SYSTEM or more to one address, $2.25 each. PUBLISHED INTERPRETATIONS OF THE BOARD OF GOV- IMPROVING THE MONETARY AGGREGATES: STAFF ERNORS, as of Dec. 31, 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 Digitized for FRASER each. each. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Board Publications A 75 CONSUMER EDUCATION PAMPHLETS Forest, Jr., Richard D. Raddock, and Zoltan E. (Short pamphlets suitable for classroom use. Multiple Kenesey. July 1979. 264 pp. copies available without charge.) THE MARKET FOR FEDERAL FUNDS AND REPURCHASE AGREEMENTS, by Thomas D. Simpson. July 1979. THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE 106 pp. SYSTEM IMPACT OF BANK HOLDING COMPANIES ON COMPETI- CONSUMER HANDBOOK TO CREDIT PROTECTION LAWS. TION AND PERFORMANCE IN BANKING MARKETS, THE EQUAL CREDIT OPPORTUNITY ACT AND . . . AGE. by Stephen A. Rhoades and Roger D. Rutz. Aug. THE EQUAL CREDIT OPPORTUNITY ACT AND . . . 1979. 30 pp. CREDIT RIGHTS IN HOUSING. THE EQUAL CREDIT OPPORTUNITY ACT AND . . . Printed in Full in the Bulletin DOCTORS, LAWYERS, SMALL RETAILERS, AND (Included under "Reprints.") OTHERS WHO MAY PROVIDE INCIDENTAL CREDIT. THE EQUAL CREDIT OPPORTUNITY ACT AND . . . WOMEN. FAIR CREDIT BILLING. REPRINTS THE FEDERAL OPEN MARKET COMMITTEE (Except for Staff Papers, Staff Studies, and some FEDERAL RESERVE BANK BOARD OF DIRECTORS leading articles, most of the articles reprinted do not FEDERAL RESERVE BANKS exceed 12 pages.) A GUIDE TO FEDERAL RESERVE REGULATIONS. How TO FILE A CONSUMER CREDIT COMPLAINT. MEASURES OF SECURITY CREDIT. 12/70. IF YOU BORROW TO BUY STOCK. REVISION OF BANK CREDIT SERIES. 12/71. IF YOU USE A CREDIT CARD. ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF TRUTH IN LEASING. U.S. BANKS. 2/72. U.S. CURRENCY. BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER— WHAT TRUTH IN LENDING MEANS TO YOU. REVISED SERIES. 7/72. YIELDS ON NEWLY ISSUED CORPORATE BONDS. 9/72. RECENT ACTIVITIES OF FOREIGN BRANCHES OF U.S. STAFF STUDIES BANKS. 10/72. (Studies and papers on economic and financial sub- ONE-BANK HOLDING COMPANIES BEFORE THE 1970 jects that are of general interest.) AMENDMENTS. 12/72. YIELDS ON RECENTLY OFFERED CORPORATE BONDS. Summaries Only Printed in the Bulletin 5/73. (Requests to obtain single copies of the full text or RATES ON CONSUMER INSTALMENT LOANS. 9/73. to be added to the mailing list for the series may be NEW SERIES FOR LARGE MANUFACTURING CORPORAsent to Publications Services.) TIONS. 10/73. U.S. ENERGY SUPPLIES AND USES, Staff Economic THE BEHAVIOR OF MEMBER BANK REQUIRED RESERVE Study by Clayton Gehman. 12/73. RATIOS AND THE EFFECTS OF BOARD ACTION, THE STRUCTURE OF MARGIN CREDIT. 4/75. 1968-77, by Thomas D. Simpson. July 1978. 39 NEW STATISTICAL SERIES ON LOAN COMMITMENTS AT pp. SELECTED LARGE COMMERCIAL BANKS. 4/75. FOOTHOLD ACQUISITIONS AND BANK MARKET STRUC- AN ASSESSMENT OF BANK HOLDING COMPANIES, Staff TURE, by Stephen A. Rhoades and Paul Schweit- Economic Study by Robert J. Lawrence and Samzer, July 1978. 8 pp. uel H. Talley. 1/76. INTEREST RATE CEILINGS AND DISINTERMEDIATION, by INDUSTRIAL ELECTRIC POWER USE. 1/76. Edward F. McKelvey. Sept. 1978. 105 pp. REVISION OF MONEY STOCK MEASURES. 2/76. THE RELATIONSHIP BETWEEN RESERVE RATIOS AND SURVEY OF FINANCE COMPANIES, 1975. 3/76. THE MONETARY AGGREGATES UNDER RESERVES REVISED SERIES FOR MEMBER BANK DEPOSITS AND AND FEDERAL FUNDS RATE OPERATING TARGETS, AGGREGATE RESERVES. 4/76. by Kenneth J. Kopecky. Dec. 1978. 58 pp. INDUSTRIAL PRODUCTION—1976 REVISION. 6/76. TIE-INS BETWEEN THE GRANTING OF CREDIT AND FEDERAL RESERVE OPERATIONS IN PAYMENT MECHA- SALES OF INSURANCE BY BANK HOLDING COMPA- NISMS: A SUMMARY. 6/76. NIES AND OTHER LENDERS, by Robert A. Eisenbeis NEW ESTIMATES OF CAPACITY UTILIZATION: MANUand Paul R. Schweitzer. Feb. 1979. 75 pp. FACTURING AND MATERIALS. 11/76. GEOGRAPHIC EXPANSION OF BANKS AND CHANGES IN BANK HOLDING COMPANY FINANCIAL DEVELOPMENTS BANKING STRUCTURE, by Stephen A. Rhoades. IN 1976. 4/77. Mar. 1979. 40 pp. SURVEY OF TERMS OF BANK LENDING—NEW SERIES. IMPACT OF THE DOLLAR DEPRECIATION ON THE U.S. 5/77. PRICE LEVEL: AN ANALYTICAL SURVEY OF EM- THE COMMERCIAL PAPER MARKET. 6/77. PIRICAL ESTIMATES, by Peter Hooper and Barbara THE FEDERAL BUDGET IN THE 1970'S. 9/78. R. Lowrey. Apr. 1979. 53 pp. SUMMARY MEASURES OF THE DOLLAR'S FOREIGN EX- INNOVATIONS IN BANK LOAN CONTRACTING: RECENT CHANGE VALUE. 10/78. EVIDENCE, by Paul W. Boltz and Tim S. Camp- SURVEY OF TIME AND SAVINGS DEPOSITS AT COMMERbell. May 1979. 40 pp. CIAL BANKS, January 1979. 5/79. MEASUREMENT OF CAPACITY UTILIZATION: PROBLEMS REDEFINING THE MONETARY AGGREGATES. 1/79. AND TASKS, by Frank de Leeuw, Lawrence R. U.S. INTERNATIONAL TRANSACTIONS IN 1978. 4/79. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 Index to Statistical Tables References are to pages A-3 through A-68 although the prefix "A" is omitted in this index ACCEPTANCES, bankers, 11, 25, 27 Demand deposits Agricultural loans, commercial banks, 18, 20-22, 26 Adjusted, commercial banks, 13, 15, 19 Assets and liabilities (See also Foreigners) Banks, by classes, 16, 17, 19, 20-23 Banks, by classes, 16, 17, 18, 20-23, 29 Ownership by individuals, partnerships, and Domestic finance companies, 39 corporations, 25 Federal Reserve Banks, 12 Subject to reserve requirements, 15 Nonfinancial corporations, current, 38 Turnover, 13 Automobiles Deposits (See also specific types) Consumer installment credit, 42, 43 Banks, by classes, 3, 16, 17, 19,20-23,29,69-72 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, 69-72 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

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, 69-72 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, 10, 72 Flow of funds, 44, 45 International capital transactions ot 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 iSavings 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, J6, 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 Time deposits, 3, 10, 13, 15, 16, 17, 19, 20, 21, Production, 46, 49 Margin requirements, 28 22, 23, 69-72 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 Stock market, 28 WEEKLY reporting banks, 20-24 Prime rate, commercial banks, 26 Wholesale prices, 46, 51 Production, 46, 48 Profits, corporate, 37 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Minneapolis Detroit Chicagi Is"'lake City Omaha4 LJTCULPEP" Kansas t. \§ L > ou . i s Louisville tfi chjn?i 'harlotte. Oklahoma Citj ^MPHISJ^!^ lf»Seles ,ittie Rock Birmingha^A®lant(j Dallas<s> Houston i iSan Antonio January 1978 <7 O ALASKA HAWAII (12) LEGEND — Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis