Federal Reserve Bulletin, 1979-11

NOVEMBER 1979 FEDERAL RESERVE BULLETIN Domestic Financial Developments in the Third Quarter of 1979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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VOLUME 65 • NUMBER 11 • NOVEMBER 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 statt publications committee. This committee is responsible for -opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed by Mendelle T. Berenson. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

reporting forms for foreign banking orga- 915 LAW DEPARTMENT nizations to meet the requirements of the Amendments to Regulations D, E, and Y; Bank Holding Company and the Internavarious rules and interpretations; bank tional Banking Acts; proposed regulations holding company and bank merger orders; limiting the interstate banking activities of and pending cases. foreign banks in the United States. A1 FINANCIAL AND BUSINESS STATISTICS 905 RECORD OF POLICY ACTIONS OF THE A3 Domestic Financial Statistics FEDERAL OPEN MARKET COMMITTEE A46 Domestic Nonfinancial Statistics At its meeting on September 18, 1979, the A54 International Statistics Committee decided to instruct the Man- A69 Special Tables ager for Domestic Operations to direct open market operations initially toward a A73 GUIDE TO TABULAR PRESENTATION slight increase in the weekly average fed- AND STATISTICAL RELEASES eral funds rate to about IP/2 percent. Subsequently, the objective for the funds A74 BOARD OF GOVERNORS AND STAFF rate was to be raised or lowered in an orderly fashion within a range of 11XA to A76 FEDERAL OPEN MARKET COMMITTEE 11% percent if the monetary aggregates AND STAFF; ADVISORY COUNCILS appeared to be growing over the September-October period at annual rates close All FEDERAL RESERVE BANKS, BRANCHES, to or beyond the upper or lower limits of AND OFFICES the following ranges: M-l, 3 to 8 percent; and M-2, 6V2 to \0Vi percent. The mem- A78 FEDERAL RESERVE BOARD PUBLICATIONS bers also agreed that in assessing the behavior of the aggregates, the Manager A80 INDEX TO STATISTICAL TABLES should give approximately equal weight to M-l and M-2. A82 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 879 DOMESTIC FINANCIAL DEVELOPMENTS IN small businesses, consumers, home- THE THIRD QUARTER OF 1979 buyers, and farmers, before the Subcommittee on Access to Equity Capital and According to the quarterly report to the Business Opportunities of the House Congress, growth in the major monetary Committee on Small Business, October aggregates increased further during the 30, 1979. period. 895 Governor Partee presents the views of the 887 INDUSTRIAL PRODUCTION Board on S. 1411, a bill to reduce paperwork and to put effective controls on the Output rose about 0.1 percent during Sepprocess of imposing reporting and recordtember. keeping requirements on the public and stresses the importance of preserving the 888 STATEMENTS TO CONGRESS current exemption of banking reports from Chairman Paul A. Volcker discusses the any centralized clearance process, before background of the Federal Reserve's ac- the Subcommittee on Federal Spending tions on October 6, 1979, to maintain Practices and Open Government of the control over money and credit expansion Senate Committee on Governmental Afand says that more emphasis will be placed fairs, November 1, 1979. on controlling the provision of reserves to 898 Governor Henry C. Wallich discusses the the banking system, before the Joint Ecointernational implications of the Board's nomic Committee of the U.S. Congress, actions on October 6 and expresses the October 17, 1979. opinion that a greater volatility of the 890 Governor J. Charles Partee comments on federal funds rate, such as may be assocertain provisions of several bills pertain- ciated with the new procedures, should not ing to bank holding companies; the Board have major significance in the context of generally supports bank entry into the the dollar's exchange value, before the fields of credit-related insurance and reve- Subcommittee on International Economics nue bonds, but believes that debt issued of the Joint Economic Committee of the in connection with bank acquisitions U.S. Congress, November 5, 1979. should be held within prudent limits, in testimony before the House Committee on 903 ANNOUNCEMENTS Banking, Finance and Urban Affairs, Oc- Revision of Regulation Y to authorize tober 17, 1979. bank holding companies or their nonbank 893 Vice Chairman Frederick H. Schultz dis- subsidiaries to act as agent for the sale of cusses the general impact on small busi- general insurance in certain small comnesses of the Board's actions on October munities. 6; he says that the Board has asked mem- Adoption of policy statement on discrimber banks to avoid lending for speculative ination in the operations of banks and thrift purposes and to channel available funds institutions. into loans for productive purposes and expects that banks will continue to meet Proposed revision of Truth in Lending the needs of their best customers including enforcement guidelines; proposed bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments in the Third Quarter of 1979 This report, which was sent to the Joint Eco- from the fourth quarter of 1978 to the fourth nomic Committee of the U.S. Congress on No- quarter of 1979. vember 7, 1979, highlights the important devel- Seeking to moderate the rapid growth of the opments in domestic financial markets during monetary aggregates in an environment of inthe summer and early fall. tense inflationary pressures, the Federal Reserve allowed the rate on federal funds to increase Growth in the major monetary aggregates in- about 114 percentage points over the quarter. creased further during the third quarter. The In addition, the System raised the discount rate narrowly defined money stock (M-l) expanded 1/2 percentage point in each month of the quarat an annual rate of 9V2 percent, up from IV2 ter, to a record 11 percent by mid-September. percent in the second quarter, in part reflecting Most short-term rates rose over the quarter as increased transaction needs associated with a much as or more than the federal funds rate. rebound in economic activity. Along with the Long-term rates rose somewhat less, generally strength in M-l, increased inflows of interest- between 1/2 and 1 percentage point. By the end bearing deposits at banks and thrift institutions of the quarter, long-term rates were at or above contributed to more rapid growth in the broader the recent cyclical highs registered in the spring aggregates (M-2 and M-3). As the quarter of this year. ended, M-3 was near the low end and M-l and Total credit flows to nonfinancial sectors of M-2 at the upper end of the ranges consistent the U.S. economy are estimated to have rewith the growth objectives set by the Federal mained strong in the third quarter, at a pace Open Market Committee (FOMC) for the period somewhat above that in the first half. Businesses Interest rates NOTES Monthly averages except for Federal Reserve discount rate and conventional mortgages (based on quotations for one day each month). Yields: U.S. Treasury bills, market yields on three-month issues; prime commercial paper, dealer offering rates; conventional mortages, rates on first mortgages in primary markets, unweighted and rounded to nearest 5 basis points, from Department of Housing and Urban Development; Aaa utility bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody's Investors Service and adjusted to Aaa basis; U.S. government bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; state and local government bonds (20 issues, mixed quality), Bond Buyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

880 Federal Reserve Bulletin • November 1979 Changes in selected monetary aggregates1 Seasonally adjusted annual rates of change, in percent 1978 1979 IItteemm 11997766 11997777 11997788 Q3 Q4 Qi Q2 Q3 Member bank reserves2 Total .6 5.3 6.6 8.6 2.3 -2.9 —4.9 6.0 Nonborrowed .8 3.0 6.7 6.6 4.6 -3.3 -8.8 7.9 Monetary base3 6.7 8.3 9.1 9.3 8.4 5.7 4.0 9.7 Concepts of money4 M-l 5.8 7.9 7.2 7.9 4.1 -2.1 7.6 99..66 M-2 10.9 9.8 8.4 9.8 7.6 1.8 8.6 12.0 M-3 12.7 11.7 9.3 10.3 9.3 4.7 7.9 10.5 Time and savings deposits at commercial banks—Total (excluding large negotiable CDs) 15.0 11.2 9.4 11.0 10.2 4.5 99..33 1133..55 Savings 25.0 11.1 2.2 2.9 .2 -9.6 -3.1 5.5 Other time 7.5 11.4 15.6 17.9 18.2 15.6 18.5 19.2 Small time plus total savings5 19.2 10.5 5.9 6.9 7.0 2.2 15.1 15.9 Deposits at thrift institutions6 15.6 14.5 10.6 11.1 11.6 8.8 6.8 8.6 Memo (change in billions of dollars* seasonally adjusted) Large negotiable CDs at large banks -19.0 8.0 23.1 2.6 5.5 7.0 -10.3 -4.0 All other large time deposits7 -.8 10.8 21.0 6.3 5.6 3.6 -3.3 1.2 Small time deposits 16.4 14.5 17.9 5.4 6.9 7.5 17.2 13.8 Nondeposit funds 10.2 8.7 23.1 5.6 7.5 9.1 17.4 16.8 Domestic8 11.5 12.4 16.5 2.7 3.7 4.8 5.6 5.9 Net due to foreign related institutions -1.2 -3.8 6.6 2.8 3.9 4.3 11.7 11.0 1. Changes are calculated from the average amounts outstanding in each quarter. 2. Annual rates of change in reserve measures have been adjusted for changes in reserve requirements. 3. Includes total reserves (member bank reserve balances in the current week plus vault cash held two weeks earlier), currency in circulation (currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of commercial banks), and vault cash of nonmember banks. 4. M-l is currency plus private demand deposits adjusted. M-2 is M-l plus bank time and savings deposits other than large negotiable CDs. M-3 is M-2 plus deposits at mutual savings banks and savings and loan associations and credit union shares. 5. Interest-bearing deposits subject to Regulation Q. 6. Savings and loan associations, mutual savings banks, and credit unions. 7. Total large time deposits less negotiable CDs at weekly reporting banks. 8. Domestic sources include borrowings by banks from other than commercial banks in the form of federal funds purchased and securities sold under agreements to repurchase, plus other liabilities for borrowed money, loans sold to affiliates, loan repurchase agreements and other minor items. increased their borrowing in short- and interme- to these developments, the Federal Reserve diate-term markets, issuing a record quarterly Board on October 6 announced additional revolume of commercial paper and borrowing strictive actions. The discount rate was insizable amounts from commercial banks. A creased a full percentage point, and a reserve slowing in the growth of consumer installment requirement was established for larger member credit reduced the net flow of loan funds to the banks against net increases in managed liabilihousehold sector, although home mortgage bor- ties—defined as certificates of deposit (CDs) rowing continued at a pace close to that in the issued in denominations of $100,000 or more first half of the year. On a seasonally adjusted with maturities of less than one year, Eurodollar basis, net borrowing by the federal government borrowings, security repurchase agreements, picked up moderately in the third quarter from and federal funds borrowings from nonmember the greatly reduced rate in the first half of 1979. institutions—above a base-period level. Similar As the third quarter drew to a close, monetary requirements were imposed on branches and growth proceeded at a fast pace, and prospects agencies of foreign banks. Also, the FOMC of continued high inflation led to increased announced its intention to alter its operating speculative activities in financial, foreign ex- techniques by putting greater emphasis on conchange, and commodity markets. In response trolling the supply of bank reserves and less on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q3 1979 881 targeting the federal funds rate in attempting to a further substantial widening in the spread achieve its stated objectives for monetary between market interest rates and the ceiling rate growth. on savings deposits. The maximum rate payable Following the announcement, the federal on these deposits was increased 1/4 percentage funds rate fluctuated over a wide range, and on point effective July 1; however, increases in average remained substantially above the levels short-term interest rates were well in excess of prevailing before these actions. In late October, this adjustment. The composition of small time short-term interest rates stood between 2 and deposits, on the other hand, appears to have 2*4 percentage points above their levels of Oc- been very sensitive to changes in relative yields. tober 5; long-term rates were up about 1 per- Small time deposits exclusive of six-month centage point. This rise in rates was accompan- money market certificates (MMCs) declined ied by increases in yield spreads between $3.2 billion, as market (and MMC) rates rose higher- and lower-rated securities. Stock prices relative to fixed ceiling rates. moved sharply lower, and by late October most Net issuance of MMCs, the yield on which major stock price indexes were back down to is tied to the six-month Treasury bill rate, tolevels near those prevailing at the end of the taled $17 billion at commercial banks during second quarter, reversing gains of 7 to 12 per- the quarter. Following the mid-March regulacent between June and September. tory change that eliminated the ceiling rate advantage of 1/4 percentage point on MMCs issued by thrift institutions (for a six-month bill MONETARY AGGREGATES rate above 9 percent), commercial banks re- AND BANK CREDIT ceived more than one-half of new flows into this market in the second and third quarters, well The acceleration in M-l brought its rate of above the average one-third share of the pregrowth for the third quarter to a record 9V2 ceding three quarters. Other short-term instrupercent. The pickup in M-l growth reflected in part a greater need for transaction balances, associated with the stronger pace of nominal expenditures, and occurred despite the increased Treasury yield curves and deposit rate ceilings incentive to economize on such balances arising Percent per annum from rapid increases in interest rates. About one-third of the increase from the second-quarter growth rate is attributable to a diminution in the rate at which funds were shifted out of demand deposits and into savings accounts eligible for automatic transfer service (ATS) and negotiable order of withdrawal (NOW) accounts in New York State; such shifts are estimated to have reduced M-1 growth about 1 Vi percentage points in the second quarter and 3/4 of a Ceiling^ at S&Ls percentage point in the third. Ceilings at Growth in the interest-bearing component of commercial banks M-2 quickened considerably in the third quarter from the already increased pace of the previous three months. This expansion, along with an llllllllll^^ acceleration in M-l, boosted growth in M-2 to 1 2 3 4 5 6 7 8 an annual rate of 12 percent in the third quarter, Years to maturity the fastest pace in almost three years. Savings * Maximum yield on "money market" time deposits at deposits grew at a rate of 5!/2 percent, following commercial banks and thrift institutions, September 28, 1979. net outflows during the two previous quarters. Data reflect annual effective yields. Ceiling rates are yields derived from continuous compounding of the nominal ceiling The growth in savings deposits occurred despite rates. Market-yield data are on an investment-yield basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

882 Federal Reserve Bulletin • November 1979 ments bearing market yields also expanded rap- what reduced second-quarter pace. Growth in idly in the third quarter; in particular, net investments also rose in the third quarter, expurchases of shares in money market mutual ceeding that of any recent quarter, as banks funds were slightly in excess of the rapid sec- continued to acquire both Treasury and other ond-quarter pace, while noncompetitive tenders securities. at auctions of three- and six-month Treasury Despite the rapid growth of total deposits, bills rose substantially. banks' use of managed liabilities in the third Mainly due to increased issuance of MMCs quarter increased further, mainly through enand large CDs, deposit inflows to thrift institu- larged net borrowings from foreign branches tions picked up modestly in the third quarter, and purchases of federal funds. Eurodollar deafter having slowed in the previous period. M-3 posits continued to be a less expensive source increased at a pace of IOV2 percent, substantially of funds to U.S. banks than domestically issued faster than in the first two quarters of the year. CDs; banks ran off large time deposits on bal- Owing to the success of commercial banks in ance in the third quarter, but less so than in increasing their share of net MMC sales since the second. The rapid growth in borrowed funds March, growth of M-2 was more rapid than that in the third quarter brought the proportion of of M-3 in the second and third quarters, revers- total assets financed with these managed liabiliing the pattern that had prevailed since 1975. ties near the peak reached in 1974. Growth in commercial bank credit in the third quarter was well above the pace of the first half. BUSINESS FINANCE Loans extended to businesses grew at an unusually rapid rate, in excess of 20 percent at an Total funds raised by businesses in financial annual rate. Real estate loans showed greater markets remained substantial in the third quarstrength as well; by contrast, consumer loan ter, declining only moderately from the strong growth slowed to about two-thirds of the some- second-quarter pace. External financing needs of nonfinancial corporations continued large, although they decreased somewhat as capital Components of Major categories of expenditures edged down while internal fund bank credit bank loans flows increased. The moderate decline in capital Change, billions of dollars expenditures was attributable to a slowing of TREASURY SECURITIES inventory accumulation from the rapid pace evident in the second quarter. The reduction in U credit requirements in the third quarter was reflected in a decrease in business borrowing in OTHER SECURITIES n,—, n,—,. iI— I1 na H 4 0R EAL ESTATE 12 bond markets, as many nonfinancial corporations avoided issuing long-term debt at near- 8 TOTAL LOANS record yields. At the same time, firms continued 4 32 . 0 to borrow heavily in short- and intermediate-term markets. The increased use of short- CONSUMER 24 12 term financing has resulted in a marked rise 8 since mid-1976 in the ratio of short-term to 16 a 4 long-term debt outstanding for nonfinancial cor- . 0 porations. At the end of the third quarter, this NONBANK FINANCIAL ratio reached a high of approximately 38 per- 4 + cent, well above the previous peak recorded in 0 1974. L 0 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 The rapid growth in short-term credit in the 1978 1979 1978 1979 third quarter reflected an acceleration in the pace Seasonally adjusted. Total loans and business loans adjusted of business borrowing from all major sources for transfer between banks and their holding companies, affiliates, subsidiaries, or foreign branches. of short-term funds. Commercial paper issuance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q3 1979 883 Nonfinancial corporations moderately as the quarter progressed, probably Ratio of short-term to long-term market debt reflecting firmer expectations that long-term Percent rates were unlikely to decline substantially in the near future. Financial concerns markedly reduced their issuance of intermediate- and long-term bonds during the quarter, which helped to reduce total public offerings of corporate issues in the July-September period to the low level of the first quarter. Bond and note offerings by financial companies accounted for about 40 percent of total public offerings in the first half of 1979, but since midyear they have represented less than 30 percent of the total. Based on seasonally adjusted flow of funds data. 1979 Q3 Private bond placements, which typically estimated. serve as a source of funds for smaller and lower-rated firms, are estimated to have declined by nonfinancial firms increased further from the further in the third quarter from the relatively record annual rate of the second quarter. Growth high levels maintained in recent years. Availin finance company loans to businesses also rose able data suggest also that bond commitments appreciably in the July-September period, and, outstanding at life insurance companies recently as noted earlier, the pace of business borrowing reached their lowest level in four years. Life from banks surged. insurance companies, the principal source of The increased demand for business loans at banks occurred despite a cumulative rise of 2 Business loans and short- and intermediate-term business credit percentage points in the prime rate during the July-September period. As banks responded to Seasonally adjusted annual rates of change, in percent sharply increasing market yields, the prime rate Short- and Period Business loans intermediate-term was raised in successive steps to a record \3VI at banks1 business credit2 percent at the end of the quarter. (After the 1975—Q1 -4.2 -2.7 Federal Reserve's policy actions in early Oc- Q2 -9.7 -8.7 Q3 -3.3 -1.5 tober, the prime rate was increased further, to Q4 1.9 -1.0 15!^ percent.) In addition, data available for 1976—Q1 -3.6 0.5 large banks indicate that nonprice loan terms Q2 -4.9 -0.2 Q3 3.6 5.3 and standards of creditworthiness tightened Q4 10.0 10.4 somewhat over the third quarter. Large banks 1977—Q1 9.9 12.6 did, however, continue to report a substantial Q2 6.9 11.3 Q3 10.3 11.4 volume of below-prime lending in the third Q4 13.3 14.3 period, which may reflect in part intense com- 1978—Q1 18.0 16.6 Q2 16.7 17.2 petition to supply the short-term financing needs Q3 12.7 11.8 of the largest corporations. As in the second Q4 14.2 16.3 quarter, growth of business loans at large banks 1979—Q1 20.4 20.6 Q2 17.1 20.0 exceeded that at small banks, a reversal of the Q3e 22.2 24.0 trend that had prevailed since the beginning of 1. Based on prorated monthly averages of Wednesday data the economic recovery in 1975. for domestically chartered banks and an average of current Public offerings of bonds by nonfinancial and previous month-end data for foreign-related institutions. Adjusted for outstanding amounts of loans sold to affiliates. corporations declined in the third quarter, 2. Short- and intermediate-term business credit is business largely because of a relatively low level of bond loans at commercial banks plus nonfinancial commercial paper and finance company loans to businesses, measured from issuance by public utilities in the first two end-of-quarter to end-of-quarter. Commercial paper reflects months of the period. The volume of public prorated averages of Wednesday data and finance company loans reflect averages of current and previous month-end data. offerings by industrial companies picked up e Estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

884 Federal Reserve Bulletin • November 1979 private placement money, have allocated a creased concerns about the continuing strength larger fraction of their investable funds to of economic activity and corporate earnings. In higher-yielding mortgage instruments in recent addition, the sharp rise in interest rates in Ocquarters. tober encouraged margin account investors to Yields on corporate bonds increased more reduce their borrowings. than 1/2 of a percentage point over the third Owing to the increases in the major stockquarter to their highest levels since October price indexes in the July-September period, 1974. Following the Federal Reserve's policy conventional measures of price-earnings ratios actions in early October, bond yields jumped edged up a bit in the third quarter, although an additional 75 to 125 basis points by month- they continued to be historically low. The volend. The recent upward movement in corporate ume of stock issues remained relatively small, bond yields has been accompanied by a widen- primarily because of the still high cost of equity ing of rate spreads between corporate and capital. Although public utilities continued to Treasury obligations and between lower- and account for a majority of common and preferred higher-rated corporate issues. A similar increase stock offerings, several larger industrial conin risk premiums occurred in the commercial cerns also marketed new equity issues. paper market. These increases likely reflect concerns about the impact of tighter credit mar- GOVERNMENT FINANCE ket conditions on borrowers, especially in light of the deteriorated liquidity positions of many Gross bond issuance by state and local governfirms. ments edged up slightly in the third quarter on All major indexes of stock prices rose sub- a seasonally adjusted basis. Offerings continued stantially between June and September. The to be bolstered by bonds issued to finance hous- American Stock Exchange composite index and ing, almost 80 percent of which were for the National Association of Securities Dealers' single-family mortgages. These bonds were index of over-the-counter stock prices ended the among those postponed earlier in the year when third quarter at record highs, while most major federal legislation was introduced to curtail price indexes of securities listed on the New home mortgage financing by local authorities. York Stock Exchange were near their highest Although the Congress has yet to act, issuers levels since early 1973. The American Stock responded to indications that the final legislation Exchange index continued to post the largest will exempt from any new restrictions the issues percentage rise, again reflecting the greater rel- that had been postponed earlier. ative importance of oil and natural gas industry Interest rates on state and local obligations shares on this exchange. The third-quarter gains rose appreciably in the third quarter. The Bond were retraced in October, however, as the Buyer index of yields on general obligation tightening of financial market conditions in- bonds, at 6.6 percent at the end of September, was more than 40 basis points above its level Gross offerings of new security issues at midyear. By the end of October, this index Seasonally adjusted annual rates, in billions of dollars had increased further, to 7.3 percent. The ratio of tax-exempt to corporate bond yields edged 1978 1979 TTyyppee ooff sseeccuurriittyy up a bit in the third quarter from the record Q3 Q4 Qlr Q2r Q3P low level in June and increased further in Oc- Corporate 54 42 47 55 49 tober. Bonds 42 30 39 48 39 Net Treasury borrowing amounted to just Publicly offered. 23 18 17 35 27 Privately placed. 19 12 22 16 11 under $12!/2 billion in the third quarter, not Stocks 12 12 8 7 10 seasonally adjusted, following a pay down of Foreign 6 5 4 5 8 debt in the previous period. With a combined federal deficit—including off-budget agen- State and local government 53 48 r 39 41 43 cies—of about $8!/2 billion, the Treasury was able to bring its operating cash balance to an r Revised, unusually high level at the end of the third p Preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Developments, Q3 1979 885 Federal government borrowing and cash balance Not seasonally adjusted, in billions of dollars 1977 1978 1979 IItteemm Q3 Q4 Qi Q2 Q3 Q4 Ql Q2 Q3 Treasury financing Budget surplus, or deficit (-) -12.2 -28.8 -25.8 14.0 -8.1 -23.8 -20.4 21.4 -4.4 Off-budget deficit1 -4.9 -1.3 -3.7 -2.2 -3.1 -.1 -3.0 -5.2 -4.2 New cash borrowings, or repayments (-) 19.52 20.7 20.8 2.5 15.1 15.2 1100..6633 -4.6 12.4 Other means of financing4 .4 2.6 2.8 -3.2 1.0 2.6 4.2 -1.8 2.9 Change in cash balance 2.8 -6.8 -5.9 11.1 4.9 -6.1 -8.6 9.8 6.7 Federally sponsored credit agencies, net cash borrowings5 1.8 2.0 4.5 6.5 6.1 5.2 66..33 55..55 4.7 1. Includes outlays of the Pension Guaranty Corporation, Postal Service Fund, Rural Electrification and Telephone Revolving Fund, Rural Telephone Bank, Housing for the Elderly or Handicapped Fund, and Federal Financing Bank. All data have been adjusted to reflect the return of the Export-Import Bank to the unified budget. 2. Includes $2.5 billion of borrowing from the Federal Reserve on September 30, which was repaid October 4 following enactment of a new debt-ceiling bill. 3. Includes $2.6 billion of borrowing from the Federal Reserve on March 31, which was repaid April 4 following enactment of a new debt-ceiling bill. 4. Checks issued less checks paid, accrued items, and other transactions. 5. Includes debt of the Federal Home Loan Mortgage Corporation, Federal Home Loan Banks, Federal Land Banks, Federal Intermediate Credit Banks, Banks for Cooperatives, and Federal National Mortgage Association (including discount notes and securities guaranteed by the Government National Mortgage Association). quarter in anticipation of large financing needs down somewhat from the pace of the preceding in the fourth quarter. quarter and reflected a large decline in funds Issuance of nonmarketable Treasury obliga- raised by the Federal National Mortgage Assotions in the third quarter was the largest so far ciation (FNMA). FNMA borrowed only $0.2 this year. The pickup was attributable largely billion, down from $2.0 billion in the second to a substantial volume of acquisitions by quarter. Mortgage purchases by FNMA slowed foreign official accounts with the proceeds from significantly in the third quarter, and were fidollar-support operations in international ex- nanced in part by drawing down liquidity. The change markets. In contrast, the foreign central Federal Home Loan Banks borrowed $2.1 bilbanks had redeemed an appreciable volume of lion in the July-September period, while the such securities in the first half of the year. Farm Credit System borrowed $2.4 billion. In the open market, the Treasury relied pri- Yields on Treasury securities increased over marily on coupon securities to meet its financing the third quarter and in October, along with requirements, although the outstanding supply yields on private debt securities. Interest rate of Treasury bills was increased somewhat. As increases between July and September were less with nonmarketable issues, a substantial volume pronounced for Treasury bills than for private of marketable securities were purchased for short-term instruments, however, partly reflectforeign accounts in the third quarter, in contrast ing heavy purchases by foreign official accounts to a net paydown in the preceding two periods. and the Federal Reserve System. Late in the third quarter, Treasury debt operations were affected by the constraint of the MORTGAGE AND national debt ceiling, which was scheduled to CONSUMER CREDIT fall to its permanent level of $400 billion at the end of the quarter. The Treasury postponed a The growth in mortgage debt moderated only bill auction and two note auctions scheduled for a little in the third quarter, following the strong late September before the debt ceiling was second-quarter rebound. Mortgage credit flows raised to $879 billion on September 28. The have been relatively well maintained in recent three postponed auctions were held in early months, owing primarily to increased lending October. by commercial banks and life insurance compa- Federally sponsored credit agencies raised nies. Moreover, mortgage revenue bond pro- $4.7 billion in the third quarter, not seasonally grams of state and local governments, which adjusted. While substantial, this volume was offer below-market interest rates to qualified Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

886 Federal Reserve Bulletin • November 1979 Net change in mortgage debt outstanding chase agreements, mortgage-backed bonds, and Seasonally adjusted annual rates, in billions of dollars commercial paper issuance. Associations in- 1978 1979 creased their holdings of liquid assets, thereby MMoorrttggaaggee ddeebbtt raising their average liquidity—measured as the Q3r Q4r Qlr Q2r Q3e ratio of cash and liquid assets to the sum of Type of debt short-term borrowings and deposits—from 8.8 Total 154 161 153 157 154 Residential 116 125 115 118 113 percent, seasonally adjusted, at the end of the Other1 38 36 38 39 41 second quarter to just over 9 percent at the end Type of holder of the third. Commercial banks 39 36 33 32 34 The cost of mortgage financing continued to Savings and loans 48 52 43 51 43 Mutual savings banks 7 6 6 5 3 increase over the third quarter. The average of Life insurance interest rates on new commitments for 80 percompanies 10 12 10 11 13 FNMA and GNMA .. 9 9 11 8 4 cent, 30-year conventional home mortgages at Other2 41 46 50 50 57 sampled savings and loan associations rose 25. 1. Includes commercial and other nonresidential as well as basis points in the July-September period to a farm properties. new high of 11.35 percent at the end of the 2. Includes mortgage pools backing securities guaranteed by the Government National Mortgage Association, Federal quarter. In October, further substantial increases Home Loan Mortgage Corporation, or Farmers Home Admin- in mortgage yields as well as continued tightenistration, some of which may have been purchased by the institutions shown separately. ing of nonprice lending terms accompanied the r Revised. rise in other interest rates. As market rates e Partially estimated. moved to higher levels, several states either raised or removed usury ceilings on convenborrowers, have continued to account for con- tional home loans. Even so, usury ceilings in siderable origination activity in some localities, a number of states appeared to be restricting and issuance of mortgage passthrough securities the supply of mortgage credit. Moreover, origiguaranteed by the Government National Mort- nations of home mortgages insured by the Fedgage Association (GNMA) increased to record eral Housing Administration or guaranteed by levels in the third quarter. The decline in mort- the Veterans Administration reportedly were gage lending was concentrated in the residential hindered by the below-market ceiling rate of 10 sector and reflected primarily reduced lending percent on such government-underwritten loans. by savings and loan associations and to a lesser The Department of Housing and Urban Develextent mutual savings banks, as well as de- opment and the Veterans Administration raised creased purchases of government-underwritten the maximum rate to 10percent in late Seploans by FNMA. Outstanding commitments to tember, and to 11 Vi percent in late October. acquire new mortgages by savings and loan Consumer installment credit outstanding is associations edged up a bit over the third quar- estimated to have expanded at a 10 percent ter, due to a slower rate of mortgage takedowns annual rate in the third quarter. This expansion at these institutions. represents a substantial moderation from the 15 The decline in net mortgage lending at sav- percent rate of advance in the first half of 1979 ings and loan associations in the third quarter and the 19 percent rate in 1978. A further may have been in lagged response to the reduced decline in the growth of automobile installment pace of deposit growth in the preceding quarter. credit—a major component of the total—and a Moreover, field reports suggest that there was marked deceleration in expansion of bank resome slackening in residential loan demand, volving credit contributed to the slowing in the owing to the rise in mortgage interest rates this third quarter. Credit extensions have weakened year and general economic uncertainty. Savings relative to household expenditures in recent and loan associations decreased their borrowing months, perhaps reflecting less accommodative (seasonally adjusted) from Federal Home Loan financing by lenders as well as greater hesitancy Banks and instead relied more heavily on such on the part of consumers to incur further debt alternative sources of funds as security repur- in an atmosphere of economic uncertainty. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

887 Industrial Production Released for publication November 15 been mostly offset by continued strength in equipment parts. Output of nondurable goods Industrial production edged up 0.1 percent in materials—primarily textiles, paper, and chem- October, reflecting small increases in the output icals—increased 0.2 percent further in October, of consumer goods and of materials and a continuing the strength shown over the past strike-related decline in production of business year. Output of energy materials increased 0.8 equipment. In September, total output increased percent, reflecting an increase in coal production 0.5 percent. At 152.5 percent of the 1967 after a dip in September. average, the October index is near the level reached early in the year. In October, output of consumer goods rose 0.3 percent. Auto assemblies were about unchanged at a seasonally adjusted annual rate of 7.9 million units—11 percent below the average of the first half of the year. Production of business equipment declined 1.3 percent in October, mainly reflecting strikes in the farm and construction machinery industries; output increased at most other equipment producers. Production of intermediate goods, which includes construction and business supplies, edged up only a little in September and has been essentially unchanged since March. Output of materials increased 0.3 percent in October. Among durable goods materials the production of basic metals declined slightly further, while output of most other durable goods materials industries increased somewhat. A general weakening in the output of consumer Federal Reserve indexes, seasonally adjusted. Latest figures: durable parts since the beginning of 1979 has October. Auto sales and stocks include imports. 1967 == 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1979 1979 111000///777888 tttooo Sept." Oct.' May June July Aug Sept. Oct. 111000///777999 Total 152.3 152.5 1.1 .1 .1 -.8 .5 .1 1.9 Products, total 149.7 149.7 1.3 -.1 -.3 -.7 .7 0 1.5 Final products 146.9 146.8 1.7 -.1 -.3 -1.1 1.0 -.1 1.2 Consumer goods 149.8 150.3 1.9 -.1 -.7 -1.7 1.0 .3 -.6 Durable 152.3 152.8 5.9 -1.2 -.9 -6.0 3.1 .3 -6.0 Nondurable 148.8 149.3 .5 .3 -.6 .3 .1 .3 1.8 Business equipment ... 172.8 170.6 1.6 .1 -. 1 -.2 1.0 -1.3 3.5 Intermediate products 160.3 160.5 -.1 0 -. 1 .6 0 .1 2.6 Construction supplies 156.5 156.5 .3 -.1 .1 .3 -.2 0 1.3 Materials 156.4 156.8 .8 .5 .7 -.8 .1 .3 2.3 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

888 Statements to Congress Statement by Paul A. Volcker, Chairman, and more productive economy must be to break Board of Governors of the Federal Reserve the grip of inflationary expectations. System, before the Joint Economic Committee We have recently seen clear evidence of the of the U.S. Congress, October 17, 1979. pervasive influence of inflation and inflationary expectations on the orderly functioning of fi- I appreciate the opportunity to appear again nancial and commodity markets and on the before this committee in my still-new capacity. value of the dollar internationally. Over a longer Some years have passed since I had the privilege period of time, the uncertainties and distortions of appearing with some frequency as an official inherent in inflation have had a debilitating of the Treasury. I note with pleasure the conti- influence on investment, productivity, and nuity of membership on the committee. I know growth. In the circumstances, the overwhelming that in some cases membership spans decades, feeling in the nation—that we must come to and the committee has played a prominent role grips with the problem—reflects the common through the years in enhancing economic un- sense of the American people. At the same time, derstanding and policymaking. The Federal Re- we have to recognize that, after more than four serve, like so many others, has benefited from years of expansion, there are widespread anticithe dialogue. pations of inventory adjustments and a downturn I belabor the obvious when I say we face in economic activity. The challenge is to deal unpleasant economic circumstances, and that with this troublesome situation in a manner that none of our choices is risk-free or pain-free. promises, over a period of time, to restore a At the same time, the clesir and widespread solid base for sustained growth and stability. public perception that the problems are difficult In approaching that challenge, and in our but that the time has come to deal with them preoccupation with what is wrong with the provides us with an important opportunity to put economy, we should not lose sight of the posiin place and sustain forceful and appropriate tive aspects of the current situation. policies. 1. The U.S. economy has enjoyed a long and Monetary policies can only be a part of the relatively strong economic recovery; more peooverall framework. But they are an essential ple are employed than ever before—over 10 part. million more than 5 years ago. It is not necessary to recite all the details of 2. In the face of unprecedented inflation and the long series of events that have culminated enormous new increases in energy prices, wage in the serious inflationary environment that we trends overall have not appreciably accelerated are now experiencing. An entire generation of this year, reflecting, despite some disturbing young adults has grown up since the mid-1960s exceptions, the discipline and good sense of knowing only inflation, indeed an inflation that Americans in general in accepting the need for has seemed to accelerate inexorably. In the restraint. circumstances, it is hardly surprising that many 3. As the rate of increase of energy prices citizens have begun to wonder whether it is moderates—and it should, with responsible realistic to anticipate a return to general price pricing behavior by producers in coming stability and have begun to change their behav- months—there is a reasonable prospect that the ior accordingly. Inflation feeds in part on itself, overall inflation rate will soon decline. so part of the job of returning to a more stable 4. Investment activity, while restrained by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 889 uncertainties of inflation and by tax and regula- sion of reserves to the banking system, which tory constraints, has been relatively well main- ultimately governs the supply of deposits and tained, even though it appears lower than con- money, to keep monetary growth within our sistent with our long-term needs. established targets. We have raised the discount 5. Economic activity abroad is being sus- rate so that restraint on bank reserves will not tained; this should support the recent trend of be offset by excessive borrowing from the Fedsubstantial growth in U.S. exports and help to eral Reserve Banks. And we have placed a improve the overall U.S. current-account posi- special marginal reserve requirement of 8 pertion. cent on increases in "managed liabilities" of 6. More generally, the sizable imbalances larger banks (including U.S. agencies and among industrialized countries are being re- branches of foreign banks) because that source duced; the substantial reduction—even elimina- of funds has financed much of the recent buildup tion—of Japanese and German current-account in bank credit. surpluses is particularly noteworthy. In connection with these Federal Reserve I do not report these facts with any compla- actions, I would like to emphasize several cency. The actual and prospective achievements points. and much more will be jeopardized by a failure First, as I suggested earlier, our immediate to come to grips with the home-grown infla- objective is to forestall speculative excesses and tionary pressures that have become so perva- anticipations of a new inflationary outburst that sive, that have led to speculative distortions, and could only complicate, and ultimately make that have undermined stability and order in the more severe, the process of economic adjust- American and in the world economy. Dealing ment that is under way. In doing so, I believe with the sources of inflation and instability is that our recent actions can hasten, not postpone, central to both the domestic and the international the day when interest rates can decline and more objectives of the United States; as I see it, these stable conditions can be restored to credit and objectives are firmly interconnected, and we will capital markets, thus providing part of the be successful in neither unless we can begin to framework for renewed and stable economic move toward restoring a sense of stability in growth. In the meantime, these actions are not our economy. intended to, and will not, cut off the supply of In this setting, the recent actions by the Fed- money and credit to the economy. Indeed, we eral Reserve were designed to deal with the clear are conscious of the fact that there are important danger of a renewed outburst of destabilizing areas of the economy—homebuilding, smaller and inflationary speculative pressures—a devel- businesses, and others—that are particularly deopment that could only complicate and distort pendent on a continuing flow of credit. In that the present process of economic adjustment— connection, we have asked the banks to take and at the same time to establish a stronger special care to avoid lending to support specufoundation for orderly and sustained growth. In lative activity, while giving particular attention one sense, the Federal Reserve actions an- to the continuing needs of their established nounced on October 6 were part of a continuing customers for funds to maintain normal business effort to maintain control over money and credit operations. expansion. Our basic targets were not changed. Second, the doubts about the dollar in ex- But the new measures, which involved among change markets in recent months have been one other things a change in operating procedures, factor increasing uncertainties faced by busishould provide added assurance that those ob- nessmen and consumers alike. Given the dollar's jectives will be reached. Above all, the new central position in the international financial measures should make abundantly clear our system, we must recognize that its external unwillingness to finance a continuing inflation- value is particularly sensitive to perceptions and ary process. expectations about economic policy and espe- Specifically, in the period ahead, more em- cially to concern about our ability to deal with phasis will be placed on controlling the provi- inflation. I see no fundamental conflict, indeed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

890 Federal Reserve Bulletin • November 1979 no meaningful "trade-off," between our do- crease productivity; and we need international mestic and international economic objectives in cooperation and understanding. At the meetings this respect. We continue, on a day-to-day of the International Monetary Fund and the basis, to monitor developments in foreign ex- World Bank recently held in Belgrade, I was change markets, and if and when intervention impressed again by the general understanding is necessary, our actions will be closely coordi- that rising real energy prices will require signifnated with the actions of monetary authorities icant and painful economic adjustments and by abroad. the consensus on the need, under current cir- Third, the recent Federal Reserve actions cumstances, for virtually every country to attach offer the promise that more effective control can high priority to the fight against inflation. be exercised over the growth of monetary ag- As has been amply reported, the atmosphere gregates, but they are not an automatic solution at those meetings was restrained, skeptical, and to all our difficulties. The new technique for uneasy. Therein lies a danger. I am convinced conducting open market operations is not a that forceful and effective policies to deal with panacea. The definition of money itself needs the evident problems can be successful. These refinement, and redefinition of the monetary policies will need the support of concerned aggregates is currently a major Federal Reserve citizens who recognize the need for hard deciobjective. We will be monitoring financial mar- sions, for restraint, and even for sacrifice. Peskets and the flow of credit closely. We will adapt simism and cynicism can only erode that our instruments to shifting needs as time passes, process. but we do intend to maintain the kind of restraint We are passing through a period beset with on monetary growth that this committee and so exceptional economic problems. Let us recogmany others have urged for so long. nize that there are risks, but that those risks Finally, we should not rely on monetary pol- will only increase if we fail to act forcibly to deal icy alone, critical as disciplined monetary policy with inflation now, and if we fail to sustain the is, to solve our economic problems. We also effort. That is the context in which the Federal need a sustained, disciplined fiscal policy; we Reserve has acted. I am convinced that those need an effective energy policy, commanding actions, as part of a determined national effort, the support of all segments of our society, that can help establish the essential conditions for will put us more surely in control of our destiny ; a more prosperous and productive America, a we need regulatory and tax policies that will strong dollar, and a sense of stability and cohelp stimulate investment, cut costs, and in- herence in the world economy. • Statement by J. Charles Partee, Member, Board Board wishes to make. Instead, I will submit of Governors of the Federal Reserve System, for the record an appendix [available on request] before the Subcommittee on Financial Institu- stating the Board's positions on specific sections tions Supervision, Regulation and Insurance of in the bills, many of which have been covered the Committee on Banking, Finance and Urban in previous Board testimony. Affairs, U.S. House of Representatives, Oc- By way of background, the nation has expetober 17, 1979. rienced rapid changes during the past decade in technology, industry structure, and competi- I am pleased to appear before the committee tion in the provision of financial services. To on behalf of the Federal Reserve Board to testify a large extent the proposed bills being considon several proposed bills pertaining to bank ered today represent responses to the changes holding companies. Because of the broad scope that are occurring. Some, such as the proposal of these bills and the many diverse provisions to permit the underwriting of revenue bonds, they contain, it is not possible in my brief are responsive to a perceived need to clarify and prepared remarks to cover all the comments the update the traditional separation between bank- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 891 ing and the securities business. Others, such as two concerns. The first is the possibility that the property and casualty insurance prohibi- some dealers may have a competitive advantage tions, represent efforts to protect insurance over others because of differences in tax laws. agents from prospective competition in their The second is the need to strengthen those business. Proposals to relax regulatory limits on provisions of the bill intended to guard against the debt structure of bank holding companies unsound banking practices. would afford investors greater opportunity to Arguments in favor of bank underwriting of take advantage, through the bank holding com- revenue bonds hinge primarily on the prospect pany structure, of tax savings and leverage that increased competition would lower borpossibilities. Finally, provisions limiting bank rowing costs of state and local governments. mergers and bank holding company acquisitions The most noticeable effects of this increased are intended by their sponsors to maintain a competition would be for those issues now recompetitive banking system. The common ceiving only one or two bids in competitive thread of these legislative initiatives is that we auctions and for negotiated offerings in which are asked to choose among the changes taking the choice of underwriters is limited. In addiplace in the market place, encouraging those tion, many banks have extensive knowledge changes that are clearly in the public interest about the investment needs of their correand resisting those that appear to have counter- spondents and customers—derived in part from productive or anticompetitive implications. their current underwriting of general obligation I would like now to comment on three sub- bonds. Finally, secondary market activities by stantive issues that seem to have generated the dealer banks would tend to enhance the attracmost public interest. These are the proposals tiveness of revenue bonds by increasing their that would permit banks and bank holding com- liquidity. panies to underwrite municipal revenue bonds, Thus, it is reasonable to conclude that the that would prohibit the sale of property and entrance of banks into the market for revenue casualty insurance by most such companies, and bonds would improve and broaden the market that would prohibit the Board from denying for such issues. Potential savings to issuers, formation of a one-bank holding company solely while impossible to quantify, could come from because it involved a bank stock loan with a a reduction both in re-offering yields and in maturity of up to 25 years. average underwriting spreads. Nearly all empir- An aspect of the changing financial land- ical studies support the contention that there scape, which is the focus of H.R. 1539, has would be at least modest issuer cost reductions. been the rapid growth of financing of revenue Opponents argue that the small potential savbonds by state and local governments. Last ings are not sufficient to offset the added risk year, revenue issues accounted for 60 percent of abuses. The Board believes that these conof all tax-exempt bond offerings—up from 30 tentions are of doubtful merit. The tenents of percent in 1960 and less than 10 percent in the sound financial practice and the forces of comearly 1930s when the Glass-Steagall Act became petition, along with existing regulatory overlaw. That act confined banks to general obliga- sight authority, have prevented abuses in the tion bonds and prohibited them from underwrit- general obligation markets—in which banks ing and dealing in municipal revenue bonds. It have long been active—and would be equally did not, however, prohibit banks from investing applicable in the revenue bond sector. Several in such bonds for their own accounts. provisions in H.R. 1539 are intended to safe- The Board has frequently considered, and guard against conflicts of interest or unsound supported, legislation that would permit bank banking practices, as well as to ensure a monientry into the revenue bond field. After review- toring of the competitive effects within the seing the issues once again, the Board continues curities industry. The Board believes that these to support extension of bank underwriting and provisions should be tightened somewhat and dealer activities to what are essentially invest- should be extended to bank activities in the ment-grade revenue bonds but wishes to note general obligation market as well. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

892 Federal Reserve Bulletin • November 1979 As indicated, we are concerned that banks With respect to the "grandfather" provisions, might have an unwarranted competitive edge the Board would urge elimination of the prohifrom being able to deduct for tax purposes the bition on any expansion in the volume of busiinterest expense incurred by carrying municipal ness done by affected holding companies. Over securities in their dealer positions. We under- a relatively short time such a provision would stand that the Treasury is exploring possible simply eliminate grandfathered companies as methods for reducing this advantage, and we effective competitors in this market. support the effort in this regard. In recent years, investors have used the one- The proposed limitations on the property, bank holding company form of organization casualty, and life insurance agency activities of with increasing frequency as a device to facilibank holding companies and their subsidiaries tate the purchase and sale of small banks. Acreflect another dimension of the changing com- commodating provisions in the federal tax law petitive environment. These proposed limita- encourage the formation of one-bank holding tions represent attempts to protect independent companies and the issuance of debt as part of agencies from prospective competition and as the transaction. Excessive leverage may pose a such threaten an adverse impact on the public threat to the safety and soundness of the bank interest. The Board believes that the benefits being acquired, however, so that the Board has of greater competition outweigh the adverse generally denied one-bank holding company effects, and thus it feels that banking organi- applications involving debt financing in excess zations should be allowed to sell credit-related of 12 years. H.R. 4004 would force a liberaliinsurance, including property and casualty in- zation in that policy by prohibiting the Board surance. In addition to bringing an extra com- from denying the formation of a one-bank holdpetitive dimension to the industry, the sale of ing company when it involved a loan on bank insurance by banks and bank holding companies stock of up to 25 years. provides a useful and convenient service to the The Board believes that, if the permissible public, including sales at places that may be maturity of such bank-stock loans is lengthened poorly served by others. substantially, there would be a danger that one- Part of the rationale for the bill is to prevent bank holding companies would incur excessive potential abuses that may arise when the sup- acquisition debt and thus reduce or eliminate plier of credit also has the capability of provid- their capacity to provide financial support to ing credit-related insurance. But if there is such their banks in times of need. Large and extended a problem, surely it is a general one that applies debt burdens also might induce holding compato all types of lenders. To single out bank nies to extract sizable dividends from their holding companies and their bank subsidiaries banks in order to service that debt. If so, this addresses only a portion of the problem. For action would tend to depress bank capital ratios, example, previous congressional testimony perhaps to unsafe levels in some instances. suggests that 4'tying" and other abuses occur More lenient debt standards also would more frequently in the credit life area among broaden the number of potential buyers and tend nonbank lenders, such as finance companies and to drive up the price of banks. Should the price auto dealers. Yet these lenders would be per- for small banks become too steep, buyers—in mitted to continue to sell all types of insurance. an effort to recover their investment—would be It is also our view that the various exemp- under pressure to maximize bank earnings by tions, such as the size exception of $50 million moving the bank into riskier loans and investand the exemption for sales by affiliated finance ments. companies on transactions under $3,500, would In sum, the Board recognizes that many increase rather than decrease bank holding buyers of small banks need to incur debt in order company insurance agency activities by broad- to make the purchase. Moreover, we support ening the product lines of smaller companies efforts to facilitate the transfer of ownership of beyond those now permitted by Board regula- small banks. But we believe that debt issued tion. in connection with a bank acquisition must be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 893 held within prudent limits and must not place submits that this growth has been strictly conundue strain on either the bank's or the holding trolled and limited to activities closely related company's capacity to service that debt. I might to banking. For example, we have authorized note that the Board has ample regulatory au- only two minor activities under the 1970 act thority to alter the financing terms on which that were not already permissible for national bank ownership is transferred through organi- banks. Moreover, nonbanking assets still aczation of bank holding companies and will re- count for less than 4 percent of total consolisearch the price, tax and safety, and soundness dated bank holding company assets. Further, impacts of liberalizing the maturity structure of despite some sizable acquisitions in certain inacquisition debt. dustries such as mortgage banking, consumer The Board believes developments in the fi- finance, and leasing, the major thrust of bank nancial sector, and in banking in particular, holding company expansion to date has been have been such that there is little or no need in the form of new undertakings. Such de novo for most of the other provisions in the bills under expansion seems to us procompetitive on balconsideration. For example, as Governor Cold- ance and thus contains sizable potential public well testified last year on similar competitive benefits. proposals, the Board sees no need to impose I can assure you that the Board intends to rigid structural limits on expansion of banks or proceed with extreme caution in permitting new bank holding companies. We do, however, activities and that we will continue to look continue to favor the proposed clarification of closely at proposals involving significant acquiexisting law permitting denial of acquisitions, sitions of nonbank activities to assure that they even when the possible anticompetitive effects satisfy the net public benefits criteria in the statdo not violate the antitrust laws, if the responsi- ute. Therefore, we see little need for tightening ble agency believes that the proposed acquisi- legislative requirements or for new regulatory tion would not be in the public interest and the constraints. In the Board's judgment, the finananticompetitive effects are not clearly out- cial sector will continue to face a rapidly weighed by probable community convenience changing competitive environment in the years and needs factors. to come. The present flexibility of the regulatory With respect to bank holding company ex- framework seems to provide the best system pansion into the nonbanking area, the Board for responding to the nation's evolving needs. Statement by Frederick H. Schultz, Vice Chair- supply targets to the supply of bank reserves man, Board of Governors of the Federal Re- and less to the level of interest rates. Together serve System, before the Subcommittee on these actions should enable us to exercise firmer Access to Equity Capital and Business Oppor- control over the growth of money and credit tunities of the Committee on Small Business, and thus assure that monetary policy plays its U.S. House of Representatives, October 30, appropriate role in dampening inflationary pres- 1979. sures . At the time of the October 6 actions, the I am pleased to appear before you to discuss monetary aggregates and bank credit had been the impact on small business of the Federal growing at rates well in excess of our announced Reserve actions announced on October 6. targets, inflation and inflationary expectations These actions, as you know, included an were showing no signs of abating, and speculaincrease of 1 percentage point in the discount tive activity had unsettled a number of comrate, a marginal reserve requirement of 8 percent modity markets. These developments were not on so-called managed liabilities of larger banks, unrelated, nor self-correcting. Failure to deal and a change in operating procedures to give with them carried long-term risks that in our more emphasis in implementing our money judgment outweighed the short-run risks of tak- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

894 Federal Reserve Bulletin • November 1979 ing forceful steps to contain inflation. Reinforc- needing funds for productive purposes may, for ing our determination to keep the growth of a while, find credit somewhat less readily availmoney and credit within our earlier target ranges able and more expensive than it was before. seemed essential under the circumstances. Since small businesses are of necessity so These ranges had been reaffirmed in the dependent on commercial banks for the credit Board's July oversight hearings before the con- their suppliers do not provide, and since the gressional banking committees and were en- actions the Federal Reserve has taken are dedorsed by those bodies. The long-run targets signed to restrain the growth of bank credit, I adopted for 1979—that is, for the period from would like to suggest what seems to me the most the fourth quarter of 1978 to the fourth quarter likely response of these lenders to the new of 1979—still seem appropriate for orderly conditions under which they must operate. growth of the economy. We have not changed I have no doubt that banks will make every them; we have simply increased our ability to effort, as they always do, to meet the legitimate achieve them. Not only had growth in money needs of their best customers, the bulk of which and bank credit been rapid but also it threatened for most banks is small businesses. We have to become excessive. If this happened, we urged our member banks to make special efforts would be unable to meet our objective of sup- to do so in these difficult times. In a letter of plying sufficient credit to finance orderly eco- October 23 to member banks, Chairman nomic growth while slowing the pace of infla- Volcker said that "lending institutions need to tion. The steps we have taken provide better be alert to the continuing need for credit on assurance that we can meet that objective. reasonable terms to finance the basic needs of Opinions differ as to how long it will take the economy. In accommodating these needs, for our message to be widely understood. We we believe banks should take particular care that think the time will be relatively short. Once the small businesses, consumers, home buyers, and public recognizes that we are serious and that farmers continue to receive a reasonable share we intend to stay the course, inflationary expec- of available funds." tations should begin to recede and the base will However, banks themselves are likely to be be laid for a return to the stable and productive under considerable financial pressure over the economy we all want. near term, as demand for bank credit remains It almost goes without saying that a healthy heavy while growth in lendable funds modereconomy provides the kind of environment in ates. which small business can prosper, and con- The reserve requirement placed on further versely that the soundness and prosperity of this additions to the managed liabilities of larger very important sector are essential to the stabil- banks will make such funds more expensive and ity and productiveness of the overall economy. thus less attractive; managed liabilities have Success in our efforts to take the steam out of financed a significant share of the recent expaninflation and out of self-fulfilling inflationary sion in bank credit. And the increase in the expectations will be of particular benefit to small discount rate is intended to discourage excessive businesses. borrowing from the Federal Reserve Banks as But the process of getting firmer control of an alternative source of financing. In addition, the money supply, as a first step toward un- banks have been attracting considerable funds winding inflation, will not be easy or painless. from issuance of money market certificates, but The next few months could prove difficult for banks in general (including nonmembers) and some businesses—large and small. Those that small banks in particular may be more cautious have borrowed to finance speculative transac- in promoting this source of lendable funds while tions may be expected to bear the brunt of the it is so expensive. program we have adopted, and appropriately so. At the same time, slowing in customer de- Risky and overextended businesses also may mands for credit may be delayed, in part by find it difficult to roll over or fund maturing lack of acceptable financing for alternative short-term debt. Even some well-managed firms sources. For example, recent increases in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 895 cost of funds in long-term securities markets rates, the Board would also call your attention have caused the postponement of a number of to the desirability of considering the special new issues. Unless the planned use is also problems of smaller customers who have limited postponed, these borrowers are likely to seek financing alternatives." Individual bankers have temporary financing from their banks. Also, told us that they will be making particular efforts there is as yet little evidence of the expected to hold down the rates charged on loans to small recession-associated slowdown in business loan businesses. Banks that have a dual prime ardemand. rangement have indicated that they do not intend Under these circumstances, it seems likely to abandon it, and some of them apparently have that an increased proportion of credit demands decided to widen the spread between the prime will not be met. We have asked our member and the lower base rate for small businesses. banks to avoid lending for speculative purposes What we all most want to see, of course, is and to channel their available funds into loans a reduction in inflationary expectations, and this for productive purposes. While it is sometimes reduction should bring with it a decline in interdifficult to distinguish between a nonproductive est rates. The present unprecedented cost of use and a productive one, I would expect to borrowed funds appears to be unfortunately unsee a sharp cutback in financing of obviously avoidable, given the inflation premium that has speculative transactions, even before a turn- been imbedded in interest rates for some time. around in the outlook for inflation dims the There is no chance that interest rates will come profit potential of such transactions. down significantly until inflationary expectations Banks are also likely to firm their lending are damped. We are convinced that our recent standards, not only as a result of Federal Re- actions, especially when combined with disciserve actions but also because—as is usually the plined fiscal policy, represent the best and fastcase—anticipation of a slowdown in the econ- est way to bring that about. omy is causing lenders and investors to become It is clear, from what one hears and what one more quality-conscious. In addition, banks may reads in the newspapers, that small businesses be expected to encourage even high-quality are worried, and if I were a small businessman borrowers to postpone or scale back their fi- I might be worried too. There is reason to be nancing demands, if they can and if they have concerned. The next few months could be very not done so themselves. But I honestly do not difficult for some businesses. But one has to believe that banks will need to, or will, deny keep in mind that continuation of the inflationcredit to sound, established customers with fi- ary and increasingly speculative environment nancing needs that cannot be postponed. that had been developing would ultimately have In fact, the most serious financing problem had far worse consequences, for the economy for such customers over the near term, as I see as a whole and for most small businesses. The it, will be not lack of credit but its cost, which long-run dangers of the failure of the Federal in turn will likely reduce some spending plans Reserve to make a determined effort to curb and financing demands. In his October 23 letter, inflation outweigh the short-term risks inherent Chairman Volcker said, "In adjusting loan in the actions we have taken. • Statement by J. Charles Partee, Member, Board I am pleased to appear before the committee of Governors of the Federal Reserve System, today to present the views of the Federal Rebefore the Subcommittee on Federal Spending serve Board on S. 1411. The Board is sympa- Practices and Open Government of the Com- thetic with the general objective of the bill—to mittee on Governmental Affairs, U.S. Senate, reduce paperwork and to put effective controls November 1, 1979. on the process of imposing reporting and rec- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

896 Federal Reserve Bulletin • November 1979 ordkeeping requirements on the public. Report- 25 percent the total number of items of inforing burdens have grown sharply over the years, mation reported to us on all our reporting forms and there can be no question of the need for (other than those directly related to the accountstern discipline on agency reporting activities. ing for deposits subject to reserve require- As a matter of proper procedure, all statistical ments). This total is measured by taking the initiatives should be required to demonstrate (1) number of items of information on each report that there is a pressing need for every piece of multiplied by the number of respondents and information requested; (2) that there are no the frequency of reporting within a year, and unnecessary duplicative collection efforts; (3) the results are then aggregated for all reports. that information is asked for in the most efficient I should hasten to add that we do not expect and least burdensome manner; and (4) that ex- to be able to continue this rate of net reduction. isting data sources, from whatever agency, are Given new legislation, new supervisory and utilized to the extent feasible. monetary policy needs, and the fact that we have The Federal Reserve has always endeavored completed the first cycle of reviewing existing to conduct its data collection efforts with this reports, I would anticipate that we have already kind of discipline. Over the years we have accomplished most of the net reduction possible strengthened and intensified our report controls. for now. Nevertheless, the Board's clearance Since 1975, we have had in place a comprehen- and review program will continue to ensure that sive system of clearance procedures. These reporting burdens are kept to the minimum procedures are reviewed periodically, and any consistent with the effective discharge of our changes in clearance standards promulgated by responsibilities. Executive Order or by Office of Management While our statistical clearance procedures inand Budget (OMB) guidelines have been incor- corporate appropriate OMB clearance guidelines porated in our program to the extent appropriate. and standards, the reports collected from bank- Our program applies both to proposals for ing institutions that are used for supervisory new reports and to all existing reports. Under purposes by the Board have been exempt since the program, every Board reporting series is 1942 from submission to OMB for approval periodically reexamined on a zero-based ap- under the Federal Reports Act. The banking proach to see whether it can be eliminated, cut supervisory reports of the Comptroller of the back with respect to contents or reporting panel, Currency and the Federal Deposit Insurance or otherwise improved with respect to reporting Corporation (FDIC) are also exempt. According burden. Every Board report is subjected to crit- to the legislative history of the Federal Reports ical review at several levels and must be justi- Act, the exemption was intended to ensure that fied in detail before it is adopted or renewed. the Bureau of the Budget (OMB's predecessor) We devote a substantial amount of resources to would not be able to prohibit the banking agenthis program, which is coordinated at the senior cies from independently collecting information staff level. Moreover, the program involves with respect to the banks under their supervision active participation by several members of the if they determined that the direct collection of Board, and the final decision on all report pro- such data was necessary. Among the reasons posals is made by the Board as a whole. We for such treatment are (1) the sensitivity of much believe that our program for the control and supervisory information and of the examination review of reporting is one of the most compre- process; (2) the necessity at times of obtaining hensive in the federal government, and we are information quickly in response to urgent policy confident that it would meet and surpass the needs; (3) the highly technical content of much program and procedural criteria set forth in of the data that must be obtained; and (4) the section 3504(c)(2) of the bill. fact that many of the data collection activities and recordkeeping requirements of the federal We have had good success in recent years banking agencies are based on specific statutory with the Board's program of reducing the burmandates. den of reporting. From the end of 1975 to midyear 1979, we managed to reduce by almost The Board believes that the rationale under- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 897 lying the current exemption of banking reports authority conferred on the Administrator" and from submission to OMB remains operative, section 3516 would make all existing policies, particularly in view of our own rigorous report regulations, or procedures in connection with clearance and review procedures. Retention of information requests subject to repeal, amendthe exemption is necessary to ensure the contin- ment, or suppression by the Administrator. It ued and unhindered capability of the financial is difficult to assess the consequences of these supervisory agencies to collect information they sweeping provisions without detailed analysis of regard as essential for maintaining the all statutes related to the Board and the policies soundness of the banking system. Involving the and regulations adopted under those statutes. proposed Administrator for statistical manage- But it seems clear that these provisions go ment in the clearance of reports collected from beyond a reasonable grant of authority consistbanking institutions would seem to serve no ent with the specific purposes of the legislation. constructive purpose. At a minimum, such in- A number of specific provisions with respect volvement would raise serious problems in view to privacy and availability of data are of some of the sensitivity of the data and would neces- concern. For example, section 3518(b), which sarily occasion delays that could interfere with lists the conditions under which information the effective discharge of our responsibilities. obtained by one federal agency may be released I am aware that a section of the proposed to another federal agency, would seem to prebill (3509(a)(3)) contains an "override" provi- vent or to delay the Board in referring evidence sion that would enable the Board, by a two- of criminal violations of law obtained during thirds vote, to void the Administrator's disap- the course of a bank examination to the Departproval of a proposed reporting requirement and ment of Justice. Such referrals of information that another section (3511(b)) would permit the are specifically provided for under the Right to Administrator to "delegate his power to approve Financial Privacy Act (see 12 U.S.C., section proposed information requests" to any agency 3412(a)). under certain conditions. But neither of these Similarly, the Right to Financial Privacy Act provisions is a workable substitute for the con- (see U.S.C., section 3412(d)), authorizes the tinuation of the current exemption. The exercise exchange of examination or other information of the override could involve a significant lapse among financial supervisory agencies, notwithof time because some of the specified procedures standing the act's basic prohibitions on the for submitting a request to the Administrator transfer of such information. S. 1411, in section may be quite time consuming and, in addition, 3518 (b), does not include a similar provision the Administrator is given up to 90 days to and could impede or eliminate the sharing or render his decision. Similarly, use of the "del- exchange of examination material among the egation" provision would be at the discretion Board, Comptroller of the Currency, and FDIC. of the Administrator, and there can be no com- Section 3519(a) removes all sanctions for mitments in advance as to whether or on what failure to provide information to a federal conditions the provision would be utilized. agency unless collection of the information has Aside from the substantive merits of preserv- been approved by the Administrator. This proing the current exemption of banking reports vision would appear to deny the possibility of from any centralized clearance process, the applying legal penalties for the failure to provide Board submits that S. 1411 would grant author- information in cases when the Administrator's ity to the Administrator in terms so broad as disapproval of the collection of information is to raise concern that such authority might con- overridden by a two-thirds vote of the members stitute an undue and unwarranted invasion of of an independent regulatory agency, or when our statutory responsibilities. For example, the Administrator's approval is implied by his under section 3515, the Board's authority failure to respond to an agency request within "under any other law" to prescribe policies, the specified time limit. The possibility of legal regulations, or procedures in connection with sanctions should be available in such cases. information requests would be subject "to the There are also some administrative provisions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

898 Federal Reserve Bulletin • November 1979 of the bill that are troublesome to us in that some experience in related types of procedures they appear to be inconsistent with the Board's for the description and specification of banking independent status under the Federal Reserve data, though of course not on the scale mandated Act. For example, section 3504 would appear here. On the basis of our experience, it appears to give the Administrator responsibility for set- that development of a federal information locating certain aspects of budget and management tor system as comprehensive as that called for policies for all agencies covered by the bill. For by the bill would be an extremely complicated the Board, this responsibility would involve task and may in the end prove unworkable. For areas placed within its discretionary authority now, any legislation with respect to such a by statute. Similarly, section 3513 appears to system might better mandate a program of exus to be too broad, both with respect to the perimental and developmental work, including Administrator's possible use of Board personnel the question of whether the system is likely to and resources and with respect to his access to be a cost-effective service. Such experimental information and records in the Board's posses- work should include the investigation of the sion. As worded, these sections are likely to alternative of separate systems for different give rise to problems more serious than those families of statistics that could be geared to the they are intended to solve. characteristics of each family. Even so, it is I would like also to comment on some tech- likely to require a great deal of time and effort nical operating aspects of the bill that could have to obtain a clearer picture of what a practical serious effects on the operation of the federal operational system would look like and to prostatistical system. One operational problem vide an informed appraisal of its probable costs arises in connection with section 3509(b), which and benefits. sets an approval time limit of two years on all The requirements under section 3603(3) and new reports. This time limit appears too restric- (4) that each agency insert into the locator tive and probably an inappropriate detail for system "a data profile for each public-use relegislation. There will be new reports for which port, recordkeeping requirement, interagency an approval for more than two years is entirely report, and intraagency report" and that "all appropriate. Moreover, our own experience is data elements" in such reports be registered in that, given the length of time required to go the locator system also are premature. Our exthrough all the steps of a rigorous clearance perience with similar types of systems on a process, a universal two-year limit may prove smaller scale has impressed us with the enorcostly and inefficient. mous costs and difficulties involved in designing Another operational problem arises in con- a comprehensive system and in trying to force nection with Title II of the bill. That title would different kinds of data into a standard format. establish, with detailed specification, a "Federal Again, considerable developmental work seems Information Locator System," and section called for before such a sweeping and costly 3509(a) would require its use. We have had system is required as a matter of law. • Statement by Henry C. Wallich, Member, The measures represented an added restraint on Board of Governors of the Federal Reserve the availability of credit and a more effective System, before the Subcommittee on Interna- technique of controlling growth of the money tional Economics of the Joint Economic Com- supply and related monetary aggregates. These mittee of the U.S. Congress, November 5, 1979. actions are designed to assist in curbing the unacceptable inflation we are experiencing and should bring improvement on both the domestic I am pleased to be able to testify before this and the international side of our economy. My subcommittee on the international implications assignment here is to discuss the international of the Federal Reserve's October 6 measures. side. But I am sure you understand fully that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 899 the domestic and the international effects are to focus on possibilities for macroeconomic closely interrelated. policy action, particularly monetary policy ac- As background, I would like to review briefly tion. This reflected the view that the fundamensome of the most important developments in the tal cause of the dollar's weakness in exchange weeks and months leading up to October 6. markets was the severe U.S. inflation rate and The monetary aggregates, after having grown that until prospects brightened for bringing inat quite low rates in the fourth quarter of 1978 flation under control, even augmented U.S. exand the first quarter of this year, began to expand change market intervention could do little to at a very rapid pace in the second and third help the situation. A sign of the importance that quarters. Growth of M-l averaged about 10 the exchange market attached to action on inpercent at an annual rate, and growth of M-2 flation by the United States was the dollar's averaged nearly 12 percent over the course of sharp advance on October 2 on the news that the latter two quarters. The rapid expansion of Chairman Volcker had left the Belgrade meetthe aggregates in the third quarter occurred ings early to return to Washington. despite increases in the federal funds rate total- Speculation in the gold markets reached feing about 114 percent over that quarter. Contin- verish proportions from late August until early uation of growth at these rates would have October, with the price soaring $100 per ounce meant that we could not achieve our longer-run to a high of almost $450 in London trading on targets for the growth in the aggregates from October 2. The price was double that prevailing the fourth quarter of 1978 to the fourth quarter at the beginning of the year. This infection soon of 1979. Under the provisions of the Hum- spread to other metals markets, and from there phrey-Hawkins Act, the Federal Open Market to still other commodities. The Bureau of Labor Committee had set these targets in February and Statistics (BLS) index of industrial commodity reaffirmed them in July. prices rose at an annual rate in excess of 50 At the same time as incoming data revealed percent over the month of September, with a surprising degree of real strength in the econ- metals prices rising faster than the average. omy, consumer prices continued to show These developments in gold and other commonthly increases at an annual rate of 13 percent modity markets were symptomatic of a general in July and August, while the producer price rise in inflationary expectations that tended to index increased at an annual rate of nearly 16 feed on themselves. percent over the third quarter, portending possi- It was against this background that the Fedbly a near-term acceleration rather than a slow- eral Reserve announced on October 6 its packdown of consumer price increases. age of complementary measures: (1) an increase In the foreign exchange market, the dollar had of 1 percentage point in the basic discount rate declined 5!/2 percent on a weighted-average from 11 to 12 percent; (2) the establishment of basis from mid-June to the beginning of Oc- a marginal reserve requirement of 8 percent on tober, despite a substantial appreciation against further expansion in the managed liabilities of the Japanese yen. The dollar's real exchange the larger banks—liabilities that had been acvalue, that is, the dollar's exchange value ad- tively used to finance the rapid recent expansion justed for relative U.S. and foreign inflation in bank credit; and (3) a change in short-run rates, had declined somewhat less; this occurred operating procedures, placing more emphasis on despite very heavy official purchases of dollars— the supply of bank reserves and less emphasis particularly at times by U. S. authorities. on managing the interest rate on overnight fed- Exchange market pressures on the dollar in- eral funds, in order to achieve better control tensified in September; the German mark-dollar over the growth of the monetary aggregates. rate, for example, had declined to nearly the This last action was intended, in particular, to October 1978 lows. Because of these develop- provide greater assurance that the growth of the ments, exchange market participants were an- aggregates over the remainder of the year would ticipating some sort of policy "package" from be consistent with the previously adopted the United States. Talk in the market tended longer-run target ranges. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

900 Federal Reserve Bulletin • November 1979 In making the announcement and later in forecast recession actually materialize. Among letters addressed to the Federal Reserve member exchange market participants, foreign dealers banks and to the branches and agencies of tended to be more skeptical in their comments foreign banks, Chairman Volcker made clear than American dealers. that these measures were intended to bring about By the end of October, conditions in financial a slowing but not a halt in the flow of credit. markets had become more settled. Short-term He particularly stressed the need for bankers to rates were somewhat higher but were generally provide a continuing reasonable flow of credit less variable, except for the federal funds market for small businesses, consumers, homebuyers, where the effective daily rate ranged from more and farmers and pointed out the inadvisability than MVi percent to about 12 percent. Someof loans to finance essentially speculative what greater variability in the federal funds rate operations in commodities, gold, and foreign was, of course, expected in view of our new exchange markets as well as the inadvisability operating methods. Stock and bond prices, of unproductive financial loans. To guard which had declined sharply for about two weeks against the possibility that lending by foreign following the October 6 announcement, rebanks to U.S. residents might undermine the gained a moderate portion of their earlier losses restraint exerted by the marginal reserve re- and also tended to stabilize. quirements, Chairman Volcker requested the In the exchange markets, some of the initial cooperation of U.S. branches and agencies of skepticism about the Federal Reserve's actions these banks as well as their foreign affiliates. waned, and the dollar advanced even further, Bank credit and the expansion of the mone- even with substantial sales of dollars by a few tary aggregates appear to have slowed signifi- central banks in support of their currencies. The cantly since the measures were adopted, al- dollar remained near these higher levels despite though initially the effects were obscured by the release of trade figures showing a large U.S. errors in the data concerning the money supply. deficit for September and an increase in the In the financial markets, the reaction of interest German Federal Bank's discount rate at the end rates and exchange rates was immediate and of October. The dollar was underpinned by the sharp. Treasury's announcement of its two new issues By the end of the first full week, interest rates of mark-denominated securities in the German on short-term dollar assets had jumped as much capital market. By month-end the dollar's as V/2 percentage points. Prices in stock and weighted-average exchange value was up 3% bond markets tumbled. In the exchange market, percent from its October 1 level. Gold prices the dollar advanced more than 1 V2 percentage eventually declined to less than $380, partly points on a weighted-average basis—by 2 per- reflecting the announced increase in the size of centage points against the German mark— the Treasury's auction held on November 1. In withoiH any central bank intervention support. other commodity markets, prices declined fur- The gold price did not show any further signifi- ther—the BLS index was off 3 percent over the cant decline, though it had dipped below $400 month. a few days earlier, and remained very volatile. Our actions seem to have prevented any fur- Other commodity prices dropped back from ther aggravation of inflationary psychology and, their early-October highs. at least for now, may have broken its gathering Commentary on the Federal Reserve's actions momentum. Over the longer run, the principal in the domestic and foreign financial press and effect of the new monetary policy procedures by foreign monetary authorities was predomi- of the Federal Reserve will occur through the nantly favorable, emphasizing that the United impact that these procedures can be expected States was doing something fundamental about to have on growth of the money supply and on its inflation problem. Some skepticism was ex- inflation. If the monetary aggregates are firmly pressed, however, as to whether the Federal controlled, and if complementary energy, tax, regulatory, and structural policies are followed, Reserve would "stick to its guns" in moderatinflation should come down over a period of ing growth of money and credit should a widely Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 901 time, and the dollar should maintain its strength. tors and arbitragers when markets are reason- If at the same time the current account moves ably stable. Interest-bearing investments in a in the direction of surplus, as now seems likely, currency must be held for some time, after all, this development should add further strength. before the expected benefits from a more attrac- Obviously there are a number of uncertainties tive interest rate accrue. in the present situation, including the risk of An example of this may be seen in the bea major further increase in the price of oil, havior of the foreign exchange value of the which underscores the importance of an effec- dollar during the years 1975-77 as contrasted tive energy policy. with interest rate developments during that pe- In the context of the dollar's exchange value, riod. The dollar went from a position of a greater volatility of the federal funds rate such weakness early in 1975 to a condition of greater as may be associated with the new procedures strength during late 1975, almost all of 1976, should not have major significance. For one, and the first part of 1977, only to weaken day-to-day fluctuations in the federal funds rate thereafter. U.S. interest rates actually moved are unlikely to be interpreted as an indication inversely with the exchange value of the dollar, of changes in Federal Reserve policy, as has falling, on balance, from mid-1975 through been the tendency in the past. mid-1977 and rising once more beginning in the Second, other short-term interest rates and latter part of 1977. To be sure, U.S. interest long-term interest rates need not be expected rates must be viewed in relation to interest rates to follow closely, if at all, the daily fluctuations in foreign countries and in relation, particularly, of the funds rate. Such behavior would reflect to rates of inflation. The data do, however, warn both the lesser policy significance attached to against the acceptance of any simple correlation the funds rate and the fact that 90-day rates and, between interest rates and exchange rates. even more, longer-term rates tend to reflect the If our economy should slow down as is average level of the funds rate over the life of widely predicted, it could be appropriate for the instrument rather than to follow its daily interest rates to decline as growth in money and level. For instance, fluctuations in rates for daily credit subsides and inflationary expectations dimoney in London and in Frankfurt do not seem minish. I do not believe that such a development to influence very much the rate for 90-day would be viewed as a source of weakness of money and also do not seem to influence very the dollar. Inflation and current-account develmuch the exchange rates of the pound sterling opments are more fundamental determinants of and the German mark. the exchange rate than are nominal interest Third, the interest rate is only one of several rates. The measures announced by the Federal factors bearing upon the exchange market and Reserve on October 6 should assist in the effort is probably not the most important. Interest rate to make progress in effectively dealing with differentials are more fully exploited by inves- these fundamental factors. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

903 Announcements REGULATION Y: of these institutions. Over the years, the attention of the federal financial regulatory REVISION agencies has focused especially on such The Federal Reserve Board on November 2, matters as discrimination on the basis of race, religion, national origin, sex, and 1979, announced revision of its Regulation Y marital status in the provision of lending and (Bank Holding Companies) to authorize bank other financial services and the discrimholding companies or their nonbank subsidiaries inatory aspects of mortgage and other lendto act as agent for the sale of general insurance ing practices that may have a disparate imin communities with a population of less than pact on various neighborhoods and communities. The various efforts of the agencies 5,000. have been directed toward the enforcement The Board acted in conformity with court of prohibitions against such discrimination, action requiring the Board to reconsider a 1971 the development by the institutions they rule permitting this activity and after consid- supervise of appropriate remedial or affirmeration of comment received on a proposal to ative actions to help eradicate the effects of past discrimination, and the sponsorship alter the language of the 1971 rule. or support of numerous special-emphasis The revised rule, effective December 5, 1979, programs that have the objective of assisting permits bank holding companies or their non- the financial institutions to meet the credit bank subsidiaries with a principal place of needs of all segments of the communities banking business in a community with a popu- which they serve. Within the boundaries of their jurislation of 5,000 or less to sell any type of diction, the five federal financial regulatory insurance in such a community. agencies are committed to effective enforce- A provision of the previous rule permitting ment of the various civil rights laws of the such activity in communities with inadequate nation. The agencies believe that illegal disinsurance agency facilities was deleted. crimination is contrary to the best interests of not only the people discriminated against but also the financial institutions themselves. The provision of employment opportunity STATEMENT ON DISCRIMINATION without discrimination on any prohibited The Examination Council announced on Oc- basis is first and foremost the legal responsibility of the employer, and it is the policy tober 16, 1979, that the five federal bank and of the agencies that the financial institutions thrift institution regulators represented on the that they regulate should review periodically council have adopted the following policy their employment practices to ascertain that statement on discrimination. they are, in fact, nondiscriminatory and, to the extent that any discrimination is found, The Comptroller of the Currency, the adopt appropriate remedial policies and Federal Deposit Insurance Corporation, the practices to eliminate it. Federal Reserve Board, the Federal Home Such an examination of employment Loan Bank Board, and the National Credit practices should include consideration of the Union Administration, as federal agencies institutions' policies regarding the payment responsible for the regulation and supervi- of dues on behalf of employees to private sion of depositary institutions, in coopera- clubs that discriminate on the basis of race, tion with other responsible authorities, are sex, religion, color, or national origin. Becommitted to identifying and eliminating cause business is commonly conducted at illegal discrimination and to encouraging such clubs, membership prohibition may nondiscriminatory practices in the operations have an adverse and discriminatory effect Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

904 Federal Reserve Bulletin • November 1979 upon the career advancement of employees The Board on October 29, 1979, proposed who are denied equal opportunity to access two bank reporting forms to be used by foreign as either members or guests. banking organizations to meet supervisory re- For this reason, the agencies discourage quirements of the Bank Holding Company Act the payment by financial institutions, on behalf of their employees, officers, or direc- and of the International Banking Act of 1978. tors, of fees or dues for membership in The new forms are designed to implement the private clubs where business is commonly Board's national treatment concept of superviconducted, which so discriminate. Payment sion of foreign banking organizations by requirby financial institutions of the costs of any ing financial reporting equivalent to that rebusiness or social function held at any such club or organization that practices discrim- quired of domestic banking organizations. The ination is also discouraged. Board requested comment by January 4, 1980. The Board on October 30, 1979, proposed regulations limiting the interstate banking activities of foreign banks in the United States. The PROPOSED ACTIONS proposed rules, on which the Board asked com- The Federal Reserve Board on October 15, ment by January 4, 1980, would implement the 1979, announced proposals for revisions of provisions of the International Banking Act of Truth in Lending enforcement guidelines in- 1978 restricting the establishment in the United tended to overcome administrative problems and States by foreign banks of branches and subsidto permit the resumption of reimbursements to iary banks in more than one state. The proposed consumers for overcharges. The Board re- rules would be incorporated into the Federal quested comment by December 21, 1979. Reserve's Regulation K. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

905 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON SEPTEMBER 18, 1979 1. Domestic Policy Directive The information reviewed at this meeting suggested that economic activity in the current quarter was near its level in the second quarter when, according to revised estimates of the Commerce Department, real output of goods and services had declined at an annual rate of 2.4 percent. Average prices, as measured by the fixed-weight price index for gross domestic business product, appeared to be rising at a pace close to the annual rate of 10 percent 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 from the rapid rate of recent quarters, and the rate of unemployment was expected to increase substantially. The dollar value of retail sales expanded moderately in July and August, but in real terms such sales changed little and were estimated to be about 4 percent below their December 1978 peak. Sales of new automobiles rebounded in July and August from relatively depressed levels in the previous month, and by the end of August dealers' inventories of unsold cars had been reduced from an unusually high level. The index of industrial production fell 1.1 percent in August after changing little on balance from the peak reached in March. Output of consumer durable goods, especially auto assemblies, declined sharply further in August, and production of business equipment and materials, including automotive parts, also fell. In August nonfarm payroll employment was virtually unchanged following several months of slowing growth. In manufacturing, employment declined for the fifth consecutive month and the average workweek fell somewhat from an already reduced level. The unemployment rate rose from 5.7 to 6.0 percent after having fluctuated in a range of 5.6 to 5.8 percent since the beginning of the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

906 Federal Reserve Bulletin • November 1979 Private housing starts declined somewhat in July to an annual rate of 1.8 million units, close to the rate for the second quarter but well below the average for 1978. Sales of new and existing single-family homes increased in July but were still about 3 percent below their record pace in 1978. The latest survey of business plans taken by the Department of Commerce in late July and August suggested that spending for plant and equipment would expand 13.2 percent in 1979 as a whole; the survey taken three months earlier had suggested an increase of 12.7 percent. The new survey implied substantially less growth in the second half of the year than in the first half. Manufacturers' new orders for nondefense capital goods declined considerably in July to a level about 15 percent below their March peak. Producer prices of finished goods continued to rise rapidly in August. The advance was led by a further sharp increase in prices of energy items and by a substantial rise in prices of consumer foods, which had declined considerably over the previous four months. Prices of intermediate goods also continued to move up rapidly in August, but prices of crude goods changed little after having advanced substantially in most earlier months of the year. In July consumer prices increased considerably further. As in other recent months a large portion of the rise was accounted for by sharp advances in energy prices and homeownership costs. Food prices were little changed for the second straight month. Over the first seven months of the year consumer prices rose at an annual rate of about 13 percent. In August the rise in the index of average hourly earnings of private nonfarm production workers moderated appreciably, to an annual rate of about 2 3A percent. Over the first eight months of the year the increase was at an annual rate of just over 7 percent, compared with a rise of 8V2 percent during 1978. However, the increase in total hourly compensation in the nonfarm business sector was about as rapid in the first half of 1979 as it had been during 1978 and, with productivity declining, the rise in unit labor costs accelerated substantially. In foreign exchange markets the dollar came under downward pressure in the last few days of August and the first few days of September, but its trade-weighted value against major foreign currencies had changed little on balance since the Committee's meeting in mid-August. The U.S. trade deficit narrowed sharply in July from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 907 its average level earlier in the year. Exports, especially of agricultural products, continued to rise strongly in July, while non-oil imports fell substantially. Total credit outstanding at U.S. commercial banks grew more slowly in August than in most earlier months of the year. Banks' holdings of Treasury obligations declined and growth in their total loans moderated. However, business loans continued to expand rapidly in August and commercial paper issued by nonfinancial firms again increased sharply. The monetary aggregates—M-l, M-2, and M-3—continued to expand at relatively rapid rates in August and early September, although somewhat less rapidly than in June and July. Growth in demand deposits slowed considerably in August but the slowdown was partly offset by an acceleration in growth of currency. Expansion in time and savings deposits included in M-2 moderated slightly in August and net inflows of funds to nonbank thrift institutions also slowed somewhat. Growth in money market mutual funds and other short-term nondeposit investments had remained rapid in recent weeks. At its meeting on August 14, the Committee had decided on ranges of tolerance for the annual rates of growth in M-l and M-2 during the August-September period of 4 to 8 percent and 7 to 11 percent respectively. The Committee had agreed that in the coming intermeeting period the Manager for Domestic Operations of the System Open Market Account should direct open market operations initially toward an increase in the weekly average federal funds rate to a level of about 11 percent. Subsequently, if the two-month 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 10% to 1114 percent. Soon after the meeting, 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-1 would be 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 1114 percent upper limit of the intermeeting range, and in the statement week ending August 29, the rate averaged Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

908 Federal Reserve Bulletin • November 1979 11.16 percent. In these circumstances, the Committee voted on August 30 to amend the domestic policy directive by raising the upper limit of the range for the funds rate 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. In the week preceding today's meeting, the funds rate averaged about 11% percent. Short-term interest rates rose substantially during the intermeeting period, in response to strong business demands for credit as well as to the System's actions firming money market conditions and to expectations of further monetary restraint. Bond yields also increased somewhat. During the period, banks raised their loan rate to prime business borrowers in steps from 113A percent to a new record of 13 percent. On August 16, the Board of Governors announced an increase in Federal Reserve Bank discount rates from 10 to IOV2 percent. In home mortgage markets, yields on new mortgage commitments rose to new highs in early September and, according to field reports, nonrate lending terms were tightened further by numerous lenders. However, the volume of mortgage lending appeared to be well maintained . In the Committee's discussion of the economic situation and outlook, none of the members expressed disagreement with the staff appraisal of some further contraction in real gross national product after the current quarter's interruption of the decline. However, members continued to express uncertainty about the duration and extent of the contraction in activity. In one view, recent domestic developments were consistent with no more than a mild contraction. While several months had elapsed since the first signs of economic weakness and the automobile industry in particular was in recession, activity and demand for labor in certain industries and regions of the country remained strong. The unemployment rate had increased little from a level that, under prevailing market conditions, some observers associated with full employment; retail sales in real terms had leveled out in the summer, after a decline over the first half of the year; and business inventories appeared to be undergoing a moderate correction. Moreover, a new labor contract in the automobile industry had been negotiated without a work stop- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 909 page, eliminating one potential disturbance. Abroad, growth of industrial activity appeared sufficiently robust to contribute to improvement in this country's net exports and thereby to lend support to domestic activity. In an alternative view, the contraction in activity could become more severe. Recent indicators of demands suggested mounting weakness, and business inventories—up sharply in July, according to the latest available data—were unlikely to be worked down easily. Industrial activity abroad—as in the United States, adversely affected by the petroleum situation, by inflation, and by instability in foreign exchange markets—might not contribute so much to improvement in U.S. net exports. A major problem in the current situation, it was observed, was the tendency of inflation to raise effective income tax rates and thereby to reduce real disposable income and consumption expenditures. The sharp increase in oil prices, moreover, had similar effects. Members continued to express great concern about the rapid rise in prices. It was observed that inflation was more persistent now than it had been in earlier periods of some weakening in demands and that there was still a tendency to underestimate its strength. Furthermore, the current and foreseeable rate of inflation could itself lead to additional shocks to the economy. At its meeting on July 11, 1979, the Committee reaffirmed the ranges for monetary growth in 1979 that it had established in February. Thus, the Committee agreed that from the fourth quarter of 1978 to the fourth quarter of 1979 average rates of growth in the monetary aggregates within the following ranges appeared to be consistent with broad economic aims: M-l, lVi to V/2 percent; M-2, 5 to 8 percent; and M-3, 6 to 9 percent. The associated range for commercial bank credit was 7V2 to IOV2 percent. Having established the range for M-l 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 of M-l might vary in relation to its range to the extent of any deviation from that estimate. It now appeared that expansion of such accounts would reduce measured growth of M-1 over the year by about 1V2 percentage points. In contemplating policy for the period immediately ahead, Committee members took note of a staff analysis suggesting that growth of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

910 Federal Reserve Bulletin • November 1979 M-l was likely to taper off during the September-October period in response to the lagged effects of the substantial increase in interest rates during the summer and the prospective weakening of expansion in nominal GNP. However, growth over the two months would still be relatively high. Growth of M-2 was also expected to moderate, mainly as a result of the behavior of M-l but also because of a reduction in growth of savings and small time deposits at commercial banks in response to the increased level of interest rates. In the Committee's discussion, most members favored a policy of directing open market operations toward a slight additional firming in money market conditions early in the period before the next regular meeting and of having subsequent operations guided by incoming evidence on the behavior of the monetary aggregates. Because of the rapid monetary expansion of recent months, these members in general favored specification of ranges for growth of M-l and M-2 over the September-October period that were indicative of less tolerance for relatively high than for relatively low growth. Sentiment was also expressed for directing open market operations toward maintaining the money market conditions currently prevailing, unless incoming evidence suggested that growth of the monetary aggregates over the September-October period would deviate significantly from the rates currently expected. No member advocated an easing in money market conditions in the period immediately ahead. Members who favored policy measures directed toward some additional firming in money market conditions stressed the importance of achieving a significant reduction in the pace of monetary expansion over the months ahead. Such a reduction was necessary if growth over the year ending in the fourth quarter of 1979 was to be held well within the longer-run ranges that had been reaffirmed by the Committee in July. Additional measures to restrain monetary growth, moreover, would tend to lower expected rates of inflation and, consequently, would have a constructive influence on a range of decisions affecting prices and wages as well as the value of the dollar in foreign exchange markets. It was suggested, in addition, that monetary policy had not been as restrictive as it might have appeared. Despite the level of interest rates, credit demands and credit expansion remained strong. Interest rates after allowance for expected rates of inflation were not high. Furthermore, monetary growth this year had been greater than indi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 911 cated by M-l alone, owing to rapid expansion in close substitutes for demand deposits and currency. In support of a policy directed toward maintenance for the time being of prevailing money market conditions, members emphasized the substantial rise in interest rates over the past two months and the tendency of changes in rates to affect monetary growth and economic activity only after a considerable lag. In this connection, it was observed that growth of demand deposits had slowed markedly in July and August, while expansion of M-l had been supported by an unexplained pickup in growth of currency in circulation. Growth of the monetary aggregates was likely to taper off in coming months, and additional firming in money market conditions might slow growth to an unwanted degree. In the current circumstances, the Committee should avoid policy actions that might intensify the developing weakness in economic activity. 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 a slight increase in the weekly average federal funds rate to about percent. Subsequently, the objective for the funds rate was to be raised or lowered in an orderly fashion within a range of WA to 11% percent if the monetary aggregates appeared to be growing over the September-October period at annual rates close to or beyond the upper or lower limits of the following ranges: M-l, 3 to 8 percent; and M-2, 6V2 to IOV2 percent. 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 in the third quarter real output of goods and services remained near the reduced level of the preceding quarter and that prices on the average continued to rise rapidly. In August, as in July, the dollar value of retail sales expanded moderately, but sales in real terms changed little and were substantially below those of last December. Industrial production dropped from the May-July level, largely because of sharp curtailments in output of motor vehicles and parts. Nonfarm payroll employment was unchanged; the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

912 Federal Reserve Bulletin • November 1979 unemployment rate rose from 5.7 percent to 6.0 percent, thus moving above the narrow range in which it had fluctuated since the beginning of the year. Producer prices of finished goods continued to rise rapidly in August, led by further large increases in energy items and a substantial advance in consumer foods following a significant decline over the preceding four months. The rise in the index of average hourly earnings over the first eight months of this year was moderately below the pace during 1978, but the increase in total hourly compensation in the nonfarm business sector has been about as rapid this year as last. The dollar came under downward pressure in foreign exchange markets in the last days of August and the early days of September, but its trade-weighted value against major foreign currencies has changed little on balance since mid-August. The U.S. trade deficit in July was sharply reduced from the average in the first half of the year. Growth of M-l, M-2, and M-3 was relatively rapid in August and early September, although not so rapid as in June and July. Market interest rates have risen appreciably over recent weeks. An increase in Federal Reserve discount rates from 10 to lOVi percent was announced on August 16. 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 1 1, 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 1V2 to AVi percent, 5 to 8 percent, and 6 to 9 percent respectively, the same 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 IV2 to 10V2 percent. The Committee anticipates that for the period from the fourth quarter of 1979 to the fourth quarter of 1980, grdwth 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-bearing 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 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 913 rate slightly above the current level. Subsequently, operations shall be directed at maintaining the weekly average federal funds rate within the range of WA to 11% 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 September-October period of M-l and M-2 and the following ranges of tolerance: 3 to 8 percent for M-l and 6V2 to IOV2 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, Kimbrel, Mayo, Partee, Schultz, Mrs. Teeters, Messrs. Wallich, and Timlen. Votes against this action: Messrs. Balles, Black, Coldwell, and Rice. (Mr. Timlen voted as an alternate member.) Messrs. Balles, Black, and Coldwell agreed with the majority that open market operations should be directed toward attaining a slight increase in the federal funds rate initially in the coming intermeeting period, but they dissented because they believed that, given the excessive monetary growth in recent months relative to the Committee's longer-run ranges, the directive adopted by the Committee would allow for too rapid monetary growth before an additional increase in the objective for the funds rate would be triggered. To enhance the prospects for achieving the Committee's objective of restraining monetary growth they preferred, moreover, to provide leeway for a rise in the funds rate to an upper limit of 12 percent. Mr. Rice dissented from this action because he believed that an additional firming in money market conditions would intensify the developing weakness in economic activity and was unlikely to affect the rate of inflation favorably within six to nine months. In his judgment, monetary growth most likely would slow in the months immediately ahead even if current money market conditions were maintained, and growth of the monetary aggregates over the year ending in the fourth quarter of 1979 probably would fall within the Committee's longer-run ranges. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

914 Federal Reserve Bulletin • November 1979 2. Authorization for Domestic Open Market Operations The Committee took note of paragraph 3 of the authorization for domestic open market operations, which authorizes the Reserve Banks to engage in the lending of U.S. government securities held in the System Open Market Account under such instructions as the Committee might specify from time to time. That paragraph had been added to the authorization on October 7, 1969, on the basis of a judgment by the Committee that such lending of securities was reasonably necessary to the effective conduct of open market operations and to the implementation of open market policies, and on the understanding that the authorization would be reviewed periodically. At this meeting the Committee concurred in the judgment of the Manager for Domestic Operations that the lending activity in question remained reasonably necessary and that, accordingly, the authorization should remain in effect subject to review in six months. Votes for this action: Messrs. Volcker, Balles, Black, Cold well, 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

915 Law Department Statutes, regulations, interpretations, and decisions AMENDMENTS TO REGULATION D liabilities during the base period or $100 million, whichever is greater. For a member bank that, on The Board of Governors has amended Regulaa daily average basis, is a net lender of total tion D to establish a marginal reserve requirement managed liabilities during the fourteen-day base of 8 per cent on the amount by which the total period ending September 26, 1979, its managed of certain managed liabilities of member banks liabilities base shall be the sum of its negative total (and Edge and Agreement Corporations) and managed liabilities and $100 million. A member United States branches and agencies of foreign bank's managed liabilities are the total of the banks exceeds the amount of such managed liabifollowing: lities outstanding during a base period. (i)(A) time deposits of $100,000 or more with Effective October 6, 1979, section 204.5 of original maturities of less than one year; Regulation D is amended as follows: (B) time deposits of $100,000 or more with original maturities of less than one year repre- Section 204.5—Reserve Requirements senting borrowings in the form of promissory (a) Reserve percentages. Pursuant to the provi- notes, acknowledgements of advance, due bills, sions of section 19 of the Federal Reserve Act, or similar obligations as provided in § 204.1(f); section 7 of the International Banking Act of 1978 and and § 204.2(a) and subject to paragraphs (b) (C) time deposits with remaining maturities of through (f) of this section,*** less than one year represented by ineligible bankers' acceptances or obligations issued by a member (b) Currency and coin. The United States curbank's affiliate, as provided in § 204.1(f). Howrency and coin of a member bank or a United ever, managed liabilities do not include savings States branch or agency of a foreign bank shall deposits, or time deposits, open account that conbe counted as reserves in determining compliance stitute deposits of individuals, such as Christmas with the reserve requirements of this section. club accounts and vacation club accounts that are made under written contracts providing that no withdrawal shall be made until a certain number (f) Marginal reserve requirements. of periodic deposits have been made during a period of not less than 3 months; (1) Member banks. During the seven-day re- (ii) any obligation with an original maturity of serve maintenance period beginning October 25, less than one year that is issued or undertaken as 1979, and during each seven-day reserve maintea means of obtaining funds to be used in its nance period thereafter, a member bank shall banking business in the form of a promissory note, maintain a daily average reserve balance against acknowledgment of advance, due bill, ineligible its time deposits equal to 8 per cent of the amount bankers' acceptance, repurchase agreement (exby which the daily average of its total managed cept on a U.S. or agency security), or similar liabilities during the seven-day computation period obligation (written or oral) issued to and held for ending eight days prior to the beginning of the the account of a domestic banking office or corresponding seven-day reserve maintenance peagency15 of another commercial bank or trust riod exceeds the member bank's managed liabilicompany that is not required to maintain reserves ties base. For a member bank that, on a daily average basis, is a net borrower of total managed liabilities during the fourteen-day base period 15. Any banking office or agency in any State of the United ending September 26, 1979, its managed liabilities States or the District of Columbia of a bank organized under base shall be the daily average of its total managed domestic or foreign law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

916 Federal Reserve Bulletin • November 1979 pursuant to this Part, a savings bank (mutual or branches to U.S. residents18 (other than assets stock), a building or savings and loan association, acquired and net balances due from its domestic or cooperative bank, a credit union, or any agency offices). Provided, That this paragraph does not of the United States, the Export-Import Bank of apply to credit extended (1) in the aggregate the United States, Minbanc Capital Corporation amount of $100,000 or less to any United States and the Government Development Bank for Puerto resident, (2) by a foreign branch which at no time Rico; during the computation period had credit out- (iii) any obligation with an original maturity of standing to United States residents exceeding $1 less than one year that is issued or undertaken as million, (3) under binding commitments entered a means of obtaining funds to be used in its into before May 17, 1973, or (4) to an institution banking business in the form of a repurchase that will be maintaining reserves on such credit agreement arising from a transfer of direct obliga- under paragraphs (c) or (f) of this section or under tions of, or obligations that are fully guaranteed Regulation K. as to principal and interest by, the United States Provided, however, That in no event shall the or any agency thereof that the institution is obli- reserves required on a member bank's aggregate gated to repurchase (except repurchase agreements time and savings deposits be more than 10 per issued to a domestic banking office or agency of cent. a member bank, or other organization that is (2) United States branches and agencies of required to maintain reserves under this part pur- foreign banks. During the seven-day reserve suant to the Federal Reserve Act,16 or to a Federal maintenance period beginning November 8, 1979, Reserve Bank17) to the extent that the amount of a United States branch or agency of a foreign bank such repurchase agreements exceeds the total with worldwide banking assets in excess of $1 amount of United States and agency securities held billion shall maintain a daily average reserve balby the member bank in its trading account; ance against its liabilities equal to 8 per cent of (iv) any obligation that arises from a borrowing the amount by which the daily average of its total by a member bank from a dealer in securities that managed liabilities during the three seven-day is not a member bank or other organization that computation periods beginning October 11,18 and is required to maintain reserves pursuant to this 25, 1979, exceeds the total of the institution's Part,16 for one business day, of proceeds of a managed liabilities base. During the seven-day transfer of deposit credit in a Federal Reserve Bank reserve maintenance period beginning November (or other immediately available funds), received 15, 1979, and during each seven-day reserve by such dealer on the date of the loan in connection maintenance period thereafter, a United States with clearance of securities transactions; branch or agency of a foreign bank with worldwide (v) borrowings with an original maturity of less banking assets in excess of $1 billion shall mainthan one year from foreign offices of other banks tain a daily average reserve balance against its and from institutions that are exempt from interest liabilities equal to 8 per cent of the amount by rate limitations pursuant to § 217.3(g) of Regula- which the daily average of its total managed liabition Q; lities during the seven-day computation period (vi) net balances due from the member bank's ending eight days prior to the beginning of the domestic offices to its foreign branches; corresponding seven-day reserve maintenance pe- (vii) assets (including participations) held by riod exceeds the institution's managed liabilities the member bank's foreign branches that were base. In determining managed liabilities of United acquired from the member bank's domestic of- States branches and agencies, the managed liabilifices; and ties of all United States branches and agencies of (viii) credit outstanding from its foreign 18. (a) Any individual residing (at the time the credit is extended) in any State of the United States or the District of 16. Edge Corporations engaged in banking, Agreement Columbia; (b) any corporation, partnership, association or Corporations, operations subsidiaries of member banks, and other entity organized therein ("domestic corporation"); and U.S. branches and agencies of foreign banks with worldwide (c) any branch or office located therein of any other entity banking assets in excess of $1 billion. wherever organized. Credit extended to a foreign branch, 17. Repurchase agreements entered into with nonexempt office, subsidiary, affiliate or other foreign establishment entities, such as nonmember banks and nonbank dealers, are ("foreign affiliate") controlled by one or more such domestic not subject to marginal reserve requirements if such agreements corporations will not be deemed to be credit extended to a are intended to provide collateral to such nonexempt entities United States resident if the proceeds will be used in its foreign in order to engage in repurchase transactions with the Federal business or that of other foreign affiliates of the controlling Reserve System Open Market Account. domestic corporation(s). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 917 the same foreign parent bank and of its majority- banking business in the form of a promissory note, owned (greater than 50 per cent) foreign banking acknowledgement of advance, due bill, ineligible subsidiaries (the ''family") shall be consolidated. bankers' acceptance, repurchase agreement (ex- Asset and liability amounts that represent intra- cept on a U.S. or agency security), or similar family transactions between United States obligation (written or oral) issued to and held for branches and agencies of the same family shall the account of a domestic banking office or not be included in computing the managed liabili- agency15 of another commercial bank or trust ties of the family. United States branches and company that is not required to maintain reserves agencies of the same family shall designate one pursuant to this Part, a savings bank (mutual or U.S. office to be the reporting office for purposes stock), a building or savings and loan association, of filing consolidated family reports required for a cooperative bank, a credit union, or an agency determination of the family's marginal reserve of the United States, the Export-Import Bank of requirements. The reporting office shall file reports the United States, Minbanc Capital Corporation and maintain marginal reserves required under this and the Government Development Bank for Puerto section for the family at the Federal Reserve Bank Rico; of the district in which the reporting office is (iii) any obligation with an original maturity of located. For a family of United States branches less than one year that is issued or undertaken as and agencies that, on a daily average basis, is a a means of obtaining funds to be used in its net borrower of total managed liabilities during banking business in the form of a repurchase the fourteen-day base period ending September 26, agreement arising from a transfer of direct obliga- 1979, the managed liabilities base for the family tions of, or obligations that are fully guaranteed shall be the daily average of the family's total as to principal and interest by, the United States managed liabilities during the base period or $100 or any agency thereof that the institution is oblimillion, whichever is greater. For a family of gated to repurchase (except repurchase agreements United States branches and agencies that, on a issued to a domestic banking office or agency of daily average basis, is a net lender of total man- a member bank, or other organization that is aged liabilities during the fourteen-day base period required to maintain reserves under this Part purending September 26, 1979, the managed liabili- suant to the Federal Reserve Act,16 or to a Federal ties base for the family shall be the sum of the Reserve Bank17) to the extent that the amount of family's negative total managed liabilities and such repurchase agreements exceeds the total $100 million. The total managed liabilities of a amount of United States and agency securities held family are the total of each branch's and agency's: by the institution in its trading account; (i)(A) time deposits of $100,000 or more with (iv) any obligation that arises from a borrowing original maturities of less than one year; from a dealer in securities that is not a member (B) time deposits of $100,000 or more with bank or other organization that is required to original maturities of less than one year repre- maintain reserves pursuant to this Part,16 for one senting borrowings in the form of promissory business day, of proceeds of a transfer of deposit notes, acknowledgements of advance, due bills, credit in a Federal Reserve Bank (or other immeor similar obligations as provided in § 204.1(f); diately available funds), received by such dealer (C) obligations with remaining maturities of on the date of the loan in connection with clearance less than one year represented by ineligible bank- of securities transactions; ers' acceptances; (v) borrowings with an original maturity of less (D) credit balances of $100,000 or more with than one year from foreign offices of other banks an original maturity of 30 days or more but less and from institutions that are exempt from interest than one year. However, managed liabilities do rate limitations pursuant to § 217.3(g) of Regulanot include savings deposits, or time deposits, tion Q; open account that constitute deposits of individ- (vi) assets (including participations) held by the uals, such as Christmas club accounts and vacation foreign parent bank (including branches and agenclub accounts that are made under written contracts cies located outside the States of the United States providing that no withdrawal shall be made until and the District of Columbia) and by the foreign a certain number of periodic deposits have been parent's majority-owned (greater than 50 per cent) made during a period of not less than 3 months; foreign subsidiaries (including branches and agen- (ii) any obligation with an original maturity of cies located outside the States of the United States less than one year that is issued or undertaken as and the District of Columbia) or parent holding a means of obtaining funds to be used in its company that were acquired from the U.S. branch Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

918 Federal Reserve Bulletin • November 1979 or agency (other than assets required to be sold 2. Section 205.3 is amended, effective Noby the Federal supervisory authority of the branch vember 15, 1979, by revising the introductory or agency); and statement and paragraphs (c) and (d), to read as (vii) net balances due to the family's foreign follows: parent bank (including branches and agencies located outside the States of the United States and Section 205.3—Exemptions the District of Columbia) and to the foreign parent's majority-owned (greater than 50 per cent) The Act and this regulation do not apply to the foreign banking subsidiaries (including branches following: and agencies located outside the States of the United States and the District of Columbia) or parent holding company, after deducting an (c) Certain securities or commodities amount equal to 8 per cent of the U.S. branch transfers. Any transfer the primary purpose of and agency family's total assets (not including which is the purchase or sale of securities or cash, cash items in the process of collection, or commodities regulated by the Securities and Exbalances due from the foreign parent bank (in- change Commission or the Commodity Futures cluding branches and agencies located outside the Trading Commission. States of the United States and the District of Columbia), the parent's majority-owned (greater (d) Certain automatic transfers. Any transfer than 50 per cent) subsidiaries (including branches under an agreement between a consumer and a and agencies located outside the States of the financial institution which provides that the insti- United States and the District of Columbia) or tution will initiate individual transfers without a parent holding company, and balances due from specific request from the consumer. unrelated banks). (1) Between a consumer's accounts within the financial institution, such as a transfer from a Any excess or deficiency in the marginal reserve checking account to a savings account; balances required under this paragraph shall be subject to § 204.3 of this Part. (2) Into a consumer's account by the financial institution, such as the crediting of interest to a savings account (except that the financial institu- AMENDMENTS TO ELECTRONIC tion is subject to §§ 913(2), 915, and 916 of the FUND TRANSFERS Act); or The Board of Governors has adopted in final (3) From a consumer's account to an account form (1) additional sections of Regulation E to of the financial institution, such as a loan payment implement certain provisions of the Electronic (except that the financial institution is subject to Fund Transfer Act that take effect May 10, 1980, §§ 913(1), 915, and 916 of the Act). and (2) amendments to existing sections of Regu- * * * * * lation E. 3. Section 205.4 is redesignated as § 205.5, Regulation E, is amended as follows: and new § 205.4 is added, effective May 10, 1980, 1. Section 205.2 is amended, effective May 10, to read as follows: 1980, by deleting the last sentence of paragraph (i), by redesignating paragraph (j) as (k), by adding new paragraph (j), by redesignating paragraph Section 205.4—Special Requirements (k) as (1), and by revising paragraph (3) of new (a) Services offered by two or more financial § 205.2(1), o read as follows: institutions. Two or more financial institutions that Section 205.2—Definitions jointly provide electronic fund transfer services may contract among themselves to comply with * * * * * the requirements that this regulation imposes on (j) "Preauthorized electronic fund transfer" any or all of them. When making disclosures under means an electronic fund transfer authorized in §§ 205.7 and 205.8, a financial institution that advance to recur at substantially regular intervals. provides electronic fund transfer services under an (k) "State"*** agreement with other financial institutions need (1) "Unauthorized electronic fund transfer"*** make only those disclosures which are within its (3) that is initiated by the financial institution or knowledge and the purview of its relationship with its employee. the consumer for whom it holds an account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 919 (b) Services offered by financial institutions not notice of the advisability of promptly reporting holding a consumer's account. loss or theft of the access device or unauthorized transfers. [See accompanying proposed rules document * * * * * for § 205.4(b).] (b) Limitations on amount of liability. The amount of a consumer's liability for an unauth- (c) Multiple accounts and account holders. (1) orized electronic fund transfer or a series of related If a consumer holds two or more accounts at a unauthorized transfers shall not exceed $50 or the financial institution, the institution may combine amount of unauthorized transfers thaf occur before the disclosures required by the regulation into one notice to the financial institution under paragraph statement (for example, the financial institution (c) of this section, whichever is less, unless one may mail or deliver a single periodic statement or both of the following exceptions apply: or annual error resolution notice to a consumer for multiple accounts held by that consumer at that * * * ** institution). 6. Sections 205.7, 205.8, 205.10(b), (c), and (2) If two or more consumers hold a joint (d), 205.12, and 205.13 are added, effective May account from or to which electronic fund transfers 10, 1980, to read as follows: can be made, the financial institution need provide only one set of the disclosures required by the Section 205.7—Initial Disclosure of regulation for each account. Terms and Conditions (d) Additional information; disclosures re- (а) Content of disclosures. At the time a conquired by other laws. At the financial institution's sumer contracts for an electronic fund transfer option, additional information or disclosures reservice or before the first electronic fund transfer quired by other laws (for example, Truth in Lendis made involving a consumer's account, a finaning disclosures) may be combined with the disclocial institution shall disclose to the consumer, in sures required by this regulation. a readily understandable written statement, the 4. New § 205.5 is amended, effective May 10, following terms and conditions of the electronic 1980, by revising paragraph (b)(2) and by deleting fund transfer service, as applicable: paragraph (d), to read as follows: (1) A summary of the consumer's liability under § 205.6, or other applicable law or agree- Section 205.5—Issuance of Access Devices ment, for unauthorized electronic fund transfers and, at the financial institution's option, the advis- * * * ** ability of promptly reporting loss or theft of the (b) Exception *** access device or unauthorized transfers. * * * (2) The telephone number and address of the (2) The distribution is accompanied by a com- person or office to be notified when the consumer plete disclosure, in accordance with § 205.7(a), believes that an unauthorized electronic fund of the consumer's rights and liabilities that will transfer has been or may be made. apply if the access device is validated; (3) The financial institution's business days, as determined under § 205.2(d). (4) The type of electronic fund transfers that 5. Old § 205.5 is amended, effective Nothe consumer may make and any limitations on vember 15, 1979, by redesignating it as § 205.6 the frequency and dollar amount of transfers. The and by revising paragraphs (a)(3)(i) and (b), to details of the limitations need not be disclosed if read as follows: their confidentiality is essential to maintain the security of the electronic fund transfer system. Section 205.6—Liability of Consumer for (5) Any charges for electronic fund transfers or Unauthorized Transfers for the right to make transfers. (a) General rule.*** (б) A summary of the consumer's right to re- (3) *** ceive documentation of electronic fund transfers, (i) A summary of the consumer's liability under as provided in §§ 205.9, 205.10(a), and this section, or under other applicable law or 205.10(d). agreement, for unauthorized electronic fund (7) A summary of the consumer's right to stop transfers and, at the financial institution's option, payment of a preauthorized electronic fund transfer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

920 Federal Reserve Bulletin • November 1979 and the procedure for initiating a stop-payment (b) Timing of disclosures for accounts in existorder, as provided in § 205.10(c). ence on May 10, 1980. A financial institution shall (8) A summary of the financial institution's mail or deliver to the consumer the information liability to the consumer for its failure to make required by paragraph (a) of this section on or or to stop certain transfers under § 910 of the Act. before June 9, 1980, or with the first periodic (9) The circumstances under which the finan- statement required by § 205.9(b) after May 10, cial institution in the ordinary course of business 1980, whichever is earlier, for any account that will disclose information to third parties concern- is open on May 10, 1980, and ing the consumer's account. (1) From or to which electronic fund transfers (10) A notice that is substantially similar to the were made prior to May 10, 1980; following notice concerning error resolution pro- (2) With respect to which a contract for such cedures and the consumer's rights under them: transfers was entered into between a consumer and a financial institution; or In Case of Errors or Questions About Your (3) For which an access device was issued to Electronic Transfers a consumer. Telephone us at [insert telephone number] Section 205.8—Change in Terms; or Error Resolution Notice Write us at [insert address] (a) Change in terms. A financial institution shall mail or deliver a written notice to the conas soon as you can, if you think your statement sumer at least 21 days before the effective date or receipt is wrong or if you need more information of any change in a term or condition required to about a transfer listed on the statement or receipt. be disclosed under § 205.7(a) if the change would We must hear from you no later than 60 days after result in increased fees or charges, increased liawe sent you the first statement on which the bility for the consumer, fewer types of available problem or error appeared. electronic fund transfers, or stricter limitations on (1) Tell us your name and account number (if the frequency or dollar amounts of transfers. Prior any). notice need not be given where an immediate (2) Describe the error or the transfer you are change in terms or conditions is necessary to unsure about, and explain as clearly as you can maintain or restore the security of an electronic why you believe it is an error or why you need fund transfer system or account. However, if a more information. change required to be disclosed under this para- (3) Tell us the dollar amount of the suspected graph is to be made permanent, the financial instierror. tution shall provide written notice of the change If you tell us orally, we may require that you to the consumer on or with the next regularly send us your complaint or question in writing scheduled periodic statement or within 30 days, within 10 business days. unless disclosure would jeopardize the security of We will tell you the results of our investigation the system or account. within 10 business days after we hear from you and will correct any error promptly. If we need (b) Error resolution notice. For each account more time, however, we may take up to 45 days from or to which electronic fund transfers can be to investigate your complaint or question. If we made, a financial institution shall mail or deliver decide to do this, we will recredit your account to the consumer, at least once each calendar year, within 10 business days for the amount you think the notice set forth in § 205.7(a)(10). Alternais in error, so that you will have the use of the tively, a financial institution may mail or deliver money during the time it takes us to complete our a notice that is substantially similar to the followinvestigation. If we ask you to put your complaint ing notice on or with each periodic statement or question in writing and we do not receive it required by § 205.9(b): within 10 business days, we may not recredit your account. In Case of Errors or Questions About Your If we decide that there was no error, we will Electronic Transfers send you a written explanation within 3 business Telephone us at [insert telephone number] days after we finish our investigation. You may or ask for copies of the documents that we used in our investigation. Write us at [insert address] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 921 as soon as you can, if you think your statement from the previous transfer relating to the same or receipt is wrong or if you need more information authorization, or the preauthorized amount, the about a transfer on the statement or receipt. We financial institution or the designated payee shall must hear from you no later than 60 days after mail or deliver, at least 10 days before the schedwe sent you the first statement on which the error uled transfer date, a written notice of the amount or problem appeared. and scheduled date of the transfer. If the financial (1) Tell us your name and account number (if institution or designated payee informs the conany). sumer of the right to receive notice of all varying (2) Describe the error or the transfer you are transfers, the consumer may elect to receive notice unsure about, and explain as clearly as you can only when a transfer does not fall within a speciwhy you believe there is an error or why you need fied range of amounts or, alternatively, only when more information. a transfer differs from the most recent transfer by (3) Tell us the dollar amount of the suspected more than an agreed-upon amount. error. Section 205.12—Relation to State Law We will investigate your complaint and will correct any error promptly. If we take more than (a) Preemption of inconsistent state laws. The 10 days to do this, we will recredit your account Board shall determine, upon the request of any for the amount you think is in error, so that you state, financial institution, or other interested will have use of the money during the time it takes party, whether the Act and this regulation preempt us to complete our investigation. state laws relating to electronic fund transfers. Only those state laws that are inconsistent with Section 205.10—Preauthorized Transfers the Act and this regulation shall be preempted and (a) Preauthorized transfers to a consumer's ac- then only to the extent of the inconsistency. A state law is not inconsistent with the Act and this count. regulation if it is more protective of a consumer. (b) Standards for preemption. The following [See accompanying proposed rules document for are examples of the standards the Board will apply § 205.10(a).] in determining whether a state law, or a provision (b) Preauthorized transfers from a consumer's of that law, is inconsistent with the Act and this account; writen authorization. Preauthorized regulation. Inconsistency may exist when state law electronic fund transfers from a consumer's ac- (1) Requires or permits a practice or act procount may be authorized by the consumer only hibited by the Act or this regulation; in writing, and a copy of the authorization shall (2) Provides for consumer liability for unauthbe provided to the consumer by the party that orized electronic fund transfers which exceeds that obtains the authorization from the consumer. imposed by the Act and this regulation; (c) Consumer's right to stop payment. A con- (3) Provides for longer time periods than the sumer may stop payment of a preauthorized elec- Act and this regulation for investigation and cortronic fund transfer from the consumer's account rection of errors alleged by a consumer, or fails by notifying the financial institution orally or in to provide for the recrediting of the consumer's writing at any time up to 3 business days before account during the institution's investigation of the scheduled date of the transfer. The financial errors as set forth in § 205.11(c); or institution may require written confirmation of the (4) Provides for initial disclosures, periodic stop-payment order to be made within 14 days of statements, or receipts that are different in content an oral notification if, when the oral notification from that required by the Act and this regulation is made, the requirement is disclosed to the con- except to the extent that the disclosures relate to sumer together with the address to which confir- rights granted to consumers by the state law and mation should be sent. If written confirmation has not by the Act or this regulation. been required by the financial institution, the oral stop-payment order shall cease to be binding 14 (c) Procedures for preemption. Any request for days after it has been made. a determination shall include the following: (1) A copy of the full text of the state law in (d) Notice of transfers varying in amount. question, including any regulatory implementation Where a preauthorized electronic fund transfer or judicial interpretation of that law; from the consumer's account varies in amount (2) A comparison of the provisions of state law Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

922 Federal Reserve Bulletin • November 1979 with the corresponding provisions in the Act and discretion where the protection of § 915(d) of the this regulation, together with a discussion of rea- Act is neither requested nor required, or where sons why specific provisions of state law are either a rapid response is necessary. consistent or inconsistent with corresponding sec- (2)(i) Official staff interpretations are issued at tions of the Act and this regulation; and the discretion of designated officials. No interpre- (3) A comparison of the civil and criminal tations will be issued approving financial instituliability for violation of state law with the provi- tions' forms or statements. Any request for an sions of §§915 and 916(a) of the Act. official staff interpretation of this regulation shall be made in writing and addressed to the Director (d) Exemption for state-regulated transfers. of the Division of Consumer Affairs, Board of (1) Any state may apply to the Board for an Governors of the Federal Reserve System, Washexemption from the requirements of the Act and ington, D.C. 20551. The request shall contain a the corresponding provisions of this regulation for complete statement of all relevant facts concerning any class of electronic fund transfers within the the transfer or service, and shall include copies state. The Board will grant such an exemption if of all pertinent documents. the Board determines that (ii) Within 5 business days of receipt of a (1) Under the law of the state that class of request, an acknowledgment will be sent to the electronic fund transfers is subject to requirements person making the request. If the designated offisubstantially similar to those imposed by the Act cials deem issuance of an official staff interpretaand the corresponding provisions of this regulation to be appropriate, the interpretation will be tion, and published in the Federal Register to become ef- (ii) There is adequate provision for state enfective 30 days after the publication date. If a forcement. request for public comment is received, the effec- (2) To assure that the federal and state courts tive date will be suspended. The interpretation will will continue to have concurrent jurisdiction, and then be republished in the Federal Register and to aid in implementing the Act: the public given an opportunity to comment. Any (1) No exemption shall extend to the civil lia- official staff interpretation issued after opportunity bility provisions of § 915 of the Act; and for public comment shall become effective upon (ii) After an exemption has been granted, for publication in the Federal Register. the purposes of § 915 of the Act, the requirements (3) Any request for public comment on an offiof the applicable state law shall constitute the cial staff interpretation of this regulation shall be requirements of the Act and this regulation, except made in writing and addressed to the Secretary, to the extent the state law imposes requirements Board of Governors of the Federal Reserve Sysnot imposed by the Act or this regulation. tem, Washington, D.C. 20551. It must be postmarked or received by the Secretary's office within Section 205.13—Administrative Enforcement 30 days of the interpretation's publication in the (a) Enforcement by federal agencies. (1) Ad- Federal Register. The request shall contain a ministrative enforcement of the Act and this regu- statement setting forth the reasons why the person lation for certain financial institutions is assigned making the request believes that public comment to the Comptroller of the Currency, Board of would be appropriate. Governors of the Federal Reserve System, Board (4) Pursuant to § 915(d) of the Act, the Board of Directors of the Federal Deposit Insurance Cor- has designated the Director and other officials of poration, Federal Home Loan Bank Board (acting the Division of Consumer Affairs as officials "duly directly or through the Federal Savings and Loan authorized" to issue, at their discretion, official Insurance Corporation), National Credit Union staff interpretations of this regulation. Administration Board, Civil Aeronautics Board, (c) Record retention. (1) Evidence of compliand Securities and Exchange Commission. ance with the requirements imposed by the Act (2) Except to the extent that administrative enand this regulation shall be preserved by any forcement is specifically committed to other auperson subject to the Act and this regulation for thorities, compliance with the requirements ima period of not less than 2 years. Records may posed under the Act and this regulation is enforced be stored by use of microfiche, microfilm, magby the Federal Trade Commission. netic tape, or other methods capable of accurately (b) Issuance of staff interpretations. (1) Unof- retaining and reproducing information. ficial staff interpretations are issued at the staff's (2) Any person subject to the Act and this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 923 regulation that has actual notice that it is being account using one of our (automated teller mainvestigated or is subject to an enforcement pro- chines) (or) (point-of-sale terminals). ceeding by an agency charged with monitoring that (b) Preauthorized credits. person's compliance with the Act and this regulation, or that has been served with notice of an action filed under §§915 or 916(a) of the Act, [See accompanying proposed rules document shall retain the information required in paragraph for § A(8)(b).] (c)(1) of this section that pertains to the action (c) Periodic statements. You will get a or proceeding until final disposition of the matter, (monthly)(quarterly) account statement (unless unless an earlier time is allowed by order of the there are no transfers in a particular month. In agency or court. any case you will get the statement at least quarterly). 7. Appendix A is amended, effective May 10, (d) Passbook account where the only possible 1980, by revising the introductory statement and electronic fund transfers are preauthorized credby adding §§ A(8)(a), (c), and (d), (9), and (10), its. If you bring your passbook to us, we will to read as follows: record any electronic deposits that were made to your account since the last time you brought in Appendix A—Model Disclosure Clauses your passbook. This appendix contains model disclosure clauses for optional use by financial institutions to facilitate compliance with the disclosure requirements Section A(9)—Disclosure of Right to Stop Payof §§ 205.5(a)(3), (b)(2), and (b)(3), 205.6(a)(3), ment of Preauthorized Transfers, Procedure for and 205.7. Section 915(d)(2) of the .Act provides Doing So, Right to Receive Notice of Varying that use of these clauses in conjunction with other Amounts, and Financial Institution's Liability requirements of the jgulation will protect financial institutions from liability under §§915 and for Failure to Stop Payment (§§ 205.5(b)(2), 916 of the Act to the extent that the clauses 205.7(a)(6), (7), and (8)) accurately reflect the institutions' electronic fund (a) Right to stop payment and procedure for transfer services. doing so. If you have told us in advance to make Financial institutions need not use any of the regular payments out of your account, you can clauses, but may use clauses of their own design stop any of these payments. Here's how: in conjunction with the model clauses. The inap- Call us at [insert telephone number], or write plicable words or portions of phrases in parenus at [insert address], in time for us to receive theses should be deleted. The underscored catchyour request 3 business days or more before the lines are not part of the clauses and should not payment is scheduled to be made. If you call, we be used as such. Financial institutions may make may also require you to put your request in writing alterations, substitutions, or additions in the and get it to us within 14 days after you call. (We clauses in order to reflect the services offered, such will charge you [insert amount] for each stopas technical changes (e.g., substitution of a trade payment order you give.) name for the word "card," deletion of inapplicable services, or substitution of lesser liability (b) Notice of varying amounts. If these regular limits in § A(2)). Sections A(3) and A(9) include payments may vary in amount, (we) (the person references to a telephone number and address. you are going to pay) will tell you, 10 days before Where two or more of these clauses are used in each payment, when it will be made and how much a disclosure, the telephone number and address it will be. (You may choose instead to get this need not be repeated if referenced. notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits that you set.) Section A(8)—Disclosure of Right to Receive (c) Liability for failure to stop payment of Documentation of Transfers (§§ 205.5(b)(2), preauthorized transfer. If you order us to stop one 205.7(a)(6)) of these payments 3 business days or more before (a) Terminal transfers. You can get a receipt the transfer is scheduled, and we do not do so, at the time you make any transfer to or from your we will be liable for your losses or damages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

924 Federal Reserve Bulletin • November 1979 Section A(10)—Disclosure of Financial Institu- community having a population not exceeding tion 's Liability for Failure to Make Transfers 5,000. (§§ 205.5(b)(2), 205.7(a)(8)) (a) Liability for failure to make transfers. If we AMENDMENTS TO REGULATION Y, RULES OF do not properly complete a transfer to or from your PROCEDURE, AND RULES REGARDING account according to our agreement with you, we DELEGATION OF AUTHORITY will be liable for your losses or damages. However, there are some exceptions. We will not be The Board of Governors has amended its reguliable, for instance: lations to assign responsibility for receiving applications and reports from a foreign bank that does • If, through no fault of ours, your account not have a subsidiary bank in the United States does not contain enough money to make the to the Federal Reserve Bank of the district in which transfer. banking assets of the foreign bank are the largest. • If the transfer would go over the credit limit In addition, the Board has amended its regulations on your overdraft line. to transfer primary responsibility for the supervi- • If the automated teller machine where you sion, examination, and processing of applications are making the transfer does not have enough cash. of an Edge Corporation from the Reserve Bank • If the (terminal) (system) was not working of the district in which such Corporation is located properly and you knew about the breakdown when to the Reserve Bank responsible for supervising you started the transfer. the Corporation's parent holding company or • If circumstances beyond our control (such as bank. fire or flood) prevent the transfer. • There may be other exceptions. Bank Holding Companies and Change in Bank Control Effective October 24, 1979, Bank Holding Companies and Change in Bank Control, Regula- AMENDMENT TO REGULATION Y tion Y, is amended by revising §§ 225.1(c) and The Board of Governors has amended its Regu- 225.4(g)(3) to read as follows: lation Y to provide that the sale of general insurance by bank holding companies in communities Section 225.1— with populations not exceeding 5,000 is an activity Authority, Scope, and Definitions "closely related" to banking. Effective December 5, 1979, section 225.4(a) is amended by revising subparagraph (9)(iii) to (c) Federal Reserve Bank. The term "Federal read as follows: Reserve Bank" as used in this Part with respect to action by, on behalf of, or directed to be taken Section 225.4—Nonbanking Activities by a bank holding company or other organization shall mean either the Federal Reserve Bank of the (a) Activities closely related to banking or Federal Reserve district in which the operations managing or controlling banks. of the bank holding company or other organization are principally conducted, as measured by total (9) acting as insurance agent or broker in of- deposits held or controlled by it in subsidiary fices at which the holding company or its subsidi- banks on the date on which it became, or is to aries are otherwise engaged in business (or in an become, a bank holding company, or such Reserve office adjacent thereto) with respect to the follow- Bank as the Board may designate. In the case of ing types of insurance: a foreign banking organization that is not a bank holding company but which has one or more branches, agencies, or commercial lending com- (iii) any insurance sold by a bank holding panies located in any State of the United States company or a nonbanking subsidiary in a commu- or the District of Columbia, "Federal Reserve nity that has a population not exceeding 5,000 (as Bank" shall mean, unless otherwise determined shown by the last preceeding decennial census) by the Board, the Reserve Bank of the district in provided the principal place of banking business which its banking assets are the largest as of the of the bank holding company is located in a later of January 1, 1980, or the date that it estab- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 925 lishes its first branch, agency, or commercial Rules Regarding Delegation of Authority lending company. With respect to notices filed and Effective October 24, 1979, Rules Regarding other actions taken under the Control Act, the term Delegation of Authority is amended by revising refers to the Federal Reserve Bank for institution § 265.2(f) to read as follows: to be acquired, as determined by the preceding sentence in the case of bank holding companies and by section 9 of the Federal Reserve Act in Section 265.2—Specific Functions Delegated to the case of State member banks. Board Employees and to Federal Reserve Banks Section 225.4—Nonbanking Activities (f) Each Federal Reserve Bank is authorized as to a member bank or other indicated organization for which the Reserve Bank is responsible (g) Foreign bank holding companies. for receiving applications or registration statements; as to its officers under subparagraph (23) of this paragraph; and as to its own facilities under (3) A foreign bank holding company that is subparagraph (26) of this paragraph: of the opinion that other activities or investments may, in particular circumstances, meet the conditions for an exemption under section 4(c)(9) of the Act may apply to the Board for such determination by submitting to its Reserve Bank a letter Adoption of Rules Regarding setting forth the basis for that opinion. Foreign Gifts and Decorations Effective November 1, 1979, the Board of Governors has adopted a new regulation, Rules Rules of Procedure Regarding Foreign Gifts and Decorations pursuant to the requirement of section 515(g)(1) of Public Effective October 24, 1979, Rules of Procedure Law 95-105, the Foreign Gifts and Decorations is amended by deleting § 262.3(k)(5) and by re- Act, as amended. vising § 262.3(c) to read as follows: Section 262.3—Applications Part 264b—Rules Regarding Foreign Gifts and Decorations (c) Filing of applications. Any application Section 264b. 1 Purpose and Scope should be sent to the Federal Reserve Bank of the Section 264b.2 Definitions district in which the head office of the parent Section 264b.3 Foreign Gifts banking organization is located, except as other- Section 264b.4 Foreign Decorations wise specified on application forms, and that Bank Section 264b.5 Disposal of Foreign Gifts will forward it to the Board when appropriate; and Decorations however, in the case of a foreign bank holding Section 264b.6 Official Use of Foreign Gifts company, as defined in section 225.4(g) of this and Decorations chapter, applications shall be sent to the Federal Section 264.b7 Reporting Requirements Reserve Bank of the district in which the opera- Section 264b.8 Implementing Procedures tions of the organization's subsidiary banks are Section 264b.9 Miscellaneous principally conducted. In the case of a foreign banking organization that is not a bank holding Authority. 5 U.S.C. § 7342, as amended; and company but that has one or more branches, section ll(i) of the Federal Reserve Act, 12 agencies, or commercial lending companies in any U.S.C. § 248(i), 5 U.S.C. § 552. State of the United States or the District of Columbia, applications shall be sent to the Federal Section 264b. 1—Purpose and Scope Reserve Bank of the district in which the organization's banking assets are the largest. Applica- This regulation implements the 1977 Amendtions of a member bank subsidiary, however, ments to the Foreign Gifts and Decorations Act, should be filed with the Reserve Bank of the Pub. L. 95-105, which restricts Board Members' district in which the member bank is located. and employees' acceptance of foreign gifts and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

926 Federal Reserve Bulletin • November 1979 decorations. The restrictions apply to gifts whether stances is deemed to have been accepted on behalf they are tangible or intangible. Different rules of the United States, and, upon acceptance, it shall apply depending on whether the gift has only become the property of the United States. Within "minimal value." There are also rules regarding 60 days after accepting a gift under these circumacceptance of decorations from foreign govern- stances the member or employee must deposit the ments. gift with the Secretary of the Board. (d) Travel or Expenses for Travel. Board Section 264b.2—Definitions Members and employees may accept gifts of travel (a) The term "Board Members and employees" or expenses for travel taking place entirely outside means: the United States (such as transportation, food, and (1) Members of the Board of Governors of the lodging) of more than minimal value if such ac- Federal Reserve System, officers, and other em- ceptance is appropriate, consistent with the interployees of the Board; ests of the United States, and is permitted by the Board. Requests for Board approval of acceptance (2) Consultants while employed by the Board of such expenses shall be submitted to the Vice and acting on behalf of the Board; and Chairman of the Board. (3) Spouses and dependents of Board Members, officers, employees, and consultants as defined in Section 264b. 4—Foreign Decorations this section. (b) The term "foreign government" means any Board Members and employees may accept, unit of a foreign governmental authority (or its retain, and wear a decoration tendered in recogniagent or representative), including any foreign, tion of active field service in time of combat national, state, local,, or municipal government, operations or awarded for other outstanding or and any international or multinational organization unusually meritorious performance by a foreign whose membership is composed of any such units. government, subject to the approval of the Board. (c) The term "decoration" means an order, Without this approval, the decoration is deemed device, medal, badge, insignia, emblem, or to have been accepted on behalf of the United award. States, shall become the property of the United States, and shall be deposited by the Board Member or employee, within 60 days of acceptance, Section 264b. 3—Foreign Gifts with the Secretary of the Board for official use Except as provided below, Board Members and or disposal. Requests for Board approval of acemployees shall not request, or otherwise encour- ceptance of such decorations shall be submitted age the tender of, or accept, or retain, a tangible in advance to the Vice Chairman of the Board. or intangible gift from a foreign government. (a) Gifts to Minimal Value. Board members Section 264b.5—Disposal of and employees may accept and retain a tangible Foreign Gifts and Decorations or intangible gift of minimal value—that is, one having a retail value in the United States at the Within 30 days after a tangible gift or decoration time of acceptance of $100 or less—from a foreign is deposited for disposal with the Secretary of the government intended as a sourvenir or mark of Board, the gift or decoration shall be returned to courtesy. the donor, or shall be forwarded to the Administrator of General Services for transfer, donation, (b) Educational Scholarships or Medical or other disposal in accordance with applicable Treatment. Board Members and employees may law, or shall be retained for official use of the accept and retain a gift of more than minimal value Board. from a foreign government when such gift is in the nature of an educational scholarship or medical Section 264b. 6—Official Use of treatment. Foreign Gifts and Decorations (c) Tangible Gifts of More Than Minimal Value. A tangible gift of more than minimal value A foreign gift or decoration deposited with the tendered by a foreign government may be accepted Secretary of the Board may, with the approval of when it appears that to refuse the gift would likely the Board, be retained for official Board use. The cause offense or embarrassment or otherwise ad- Secretary shall insure that, whenever possible, versely affect the foreign relations of the United "official Board use" of such a gift will benefit States. Such a gift accepted under these circum- the greatest number of Board employees and/or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 927 the public. Within 30 days after terminating the (e) Not later than January 31 of each year, the "official use" of a foreign gift, the Board shall Secretary of the Board shall compile a listing of report the termination of the official use to the all statements filed during the preceding year by Administrator of the General Services, in accor- Board Members and employees pursuant to this dance with applicable GSA regulations. section and shall transmit such listing to the Secretary of State for the purpose of publishing a Section 264b. 7—Reporting Requirements listing of all such statements in the Federal Register. (a) When a Board Member or employee deposits a tangible gift or decoration of more than Section 264b. 8—Implementing Procedures minimal value for disposal or for official use, or The Board shall within 30 days after a Board Member or employee (a) Report to the Attorney General cases in accepts travel or travel expenses as provided in which there is reason to believe that a Board this section, the Board Member or employee shall Member or employee has violated this section; file a statement with the Secretary of the Board (b) Establish a procedure in the Office of the containing the information prescribed in para- Secretary of the Board for obtaining an appraisal, graphs (b) and (c) that follow. when necessary, of the value of gifts; and (b) For each tangible gift or decoration depo- (c) Take any other actions necessary to carry sited with the Secretary of the Board, a Board out the purpose of this subsection, including ap- Member or employee shall file a statement which propriate disciplinary action for failure to comply shall include the following information: with provisions of this Part. (1) The name and position of the employee; (2) A full description of the gift and the cir- Section 264b. 9—Miscellaneous cumstances justifying acceptance; (3) The identity of the foreign government and The provisions of this Part do not apply to grants the name and position of the individual who pre- and other forms of assistance to which section sented the gift; 108A of the Mutual Educational and Cultural (4) The date of acceptance of the gift; Exchange Act of 1961 applies. (5) The estimated value in the United States of the gift at the time of acceptance; (6) Disposition or current location of the gift; and INTERPRETATION OF REGULATION Q (7) An indication whether the Board Member The Board of Governors has modified an existor employee is interested in participating in the ing interpretation of Regulation Q concerning the sale of the tangible gift or decoration if it is sold Federal funds market to include credit unions by the General Services Administration. within the category of institutions from whom (c) For each gift of travel or travel expenses member banks may borrow Federal funds. accepted, a Board Member or employee shall file a statement which shall include the following 217.137—Member bank participation in information: ''Federal funds9 9 market: (1) The name and position of the employee; (2) A brief description of the travel or travel Since the adoption of section 217.1(f) in 1966, expenses, including the amount, or estimated an exemption from Regulation Q has existed for costs, and the circumstances justifying acceptance; member bank obligations in nondeposit form to and another bank. As used in such exemption, "bank" (3) The identity of the foreign government and includes a member bank, a nonmember commerthe name and position of the individual who pro- cial bank, a savings bank (mutual or stock), a vided the travel or travel expenses. building or savings and loan association or coop- (d) Board Members and employees need not erative bank, the Export-Import Bank of the report the following gifts and decorations: United States, Minbanc Capital Corp., a foreign (1) Gifts of minimal value; bank, or a credit union. It also includes bank (2) Decorations retained by the employee with subsidiaries that engage in business in which their the approval of the Board; parents are authorized to engage and subsidiaries (3) Gifts and decorations offered but refused by the stock of which is by statute explicitly eligible the Board Member or employee. for purchase by national banks. These institutions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

928 Federal Reserve Bulletin • November 1979 are considered to be "banks" also for the purposes market, and no existing competition between Bank of Regulation D (12 CFR 204).*** and any of Applicant's subsidiary banks would be eliminated by consummation of this proposal. * * * ** Notwithstanding the absence of any significantly adverse effects of the proposal upon existing competition, the Board is concerned, particularly BANK HOLDING COMPANY in light of Bank's market share, with the adverse AND BANK MERGER ORDERS effects the proposal will have upon probable future ISSUED BY THE BOARD OF GOVERNORS competition within the Benton Harbor-St. Joseph banking market. Based upon the facts of record, Orders Under Section 3 including Applicant's ability to expand de novo, of Bank Holding Company Act Applicant must be viewed as a likely potential National Detroit Corporation, entrant into the Benton Harbor-St. Joseph market, Detroit, Michigan which contains five banks that could serve as foothold entry points. Such factors indicate this Order Approving Acquisition of Bank proposal has some adverse impact on probable future competition. National Detroit Corporation, Detroit, Michigan, a bank holding company within the meaning The above considerations, however, are mitiof the Bank Holding Company Act, has applied gated by the fact that at least seven out of the for the Board's approval under § 3(a)(3) of the nine largest Michigan bank holding companies Act (12 U.S.C. § 1842(a)(3)) to acquire 80 percent would remain as possible entrants into the market. or more of the voting shares of Farmers and Furthermore, the relevant market, which can be Merchants National Bank in Benton Harbor characterized as moderately concentrated, does not ("Bank"), Benton Harbor, Michigan. appear from the facts of record to be particularly attractive for de novo entry.3 In addition, none Notice of the application, affording opportunity of the possible foothold entries are located within for interested persons to submit comments and the community of Benton Harbor, and under views, has been given in accordance with section Michigan law entry thereby into Benton Harbor 3(b) of the Act. The time for filing comments and would be precluded. In light of the above and other views has expired, and the Board has considered facts of record, the Board is unable to conclude the application and all comments received in light that consummation of the proposal would have of the factors set forth in section 3(c) of the Act such adverse competitive effects as to clearly war- (12 U.S.C. § 1842(c)). rant denial of the application. Applicant, the largest banking organization in Michigan, controls nine banks with total deposits With respect to concentration of banking reof approximately $5.9 billion, representing 15.9 sources in Michigan, the Board notes that approval percent of total deposits in commercial banks in of this acquisition would increase Applicant's the state.1 Acquisition of Bank, the 55th largest share of statewide commercial bank deposits to banking organization in Michigan, with deposits 16.2 percent. The Board continues to monitor of $107.8 million, would increase Applicant's statewide banking structures in general and, more share of commercial bank deposits in Michigan specifically, the size disparity between the large by 0.3 percent. banking organizations operating statewide and the smaller regional banking organizations. The Board Bank is the largest of eleven banking organiis concerned with the possibility that continued zations located in the Benton Harbor-St. Joseph banking market (the relevant banking market)2 and approval of acquisition or merger proposals involving large statewide bank holding companies controls 25.6 percent of the total deposits in comand relatively sizeable banking organizations may mercial banks therein. Applicant's closest subsidiperpetuate this size disparity and increase concenary banking office is located approximately 43 tration ratios, but does not regard Bank as having miles from an office of Bank, in a separate banking sufficient absolute size so that consummation would have a significant adverse effect upon statewide concentration. Nevertheless, under sec- 1. Banking data are as of June 30, 1978, and reflect bank holding company formations and acquisitions approved as of September 30, 1979. 2. The Benton Harbor-St. Joseph banking market is ap- 3. Data indicate that in 1977 the market's population and proximated by the northern two-thirds of Berrien County plus deposits per banking office and per capita deposits are all below the western half of Van Buren County, Michigan. comparable statewide averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 929 tion 3(c) of the Act, the Board is not required By order of the Board of Governors, effective to tolerate increases in banking concentration in- October 25, 1979. consistent with the underlying purpose of the Voting for this action: Chairman Volcker and Gover- Clayton Act as incorporated in the Bank Holding nors Schultz, Coldwell, and Partee. Voting against this Company Act (see Brown Shoe Co. v. United action: Governors Wallich, Teeters, and Rice. States, 370 U.S. 294, 317-18). In acting upon the subject proposal the Board was mindful of these (Signed) THEODORE E. ALLISON, considerations and concerns. [SEAL] Secretary of the Board. After considering the overall impact of consummation of this proposal, the Board has con- Dissenting Statement of cluded that approval of this application would Governors Wallich, Teeters, and Rice generally be in the public interest. The Board recognizes that consummation of the proposal We would deny the application of National would have some adverse competitive effects in Detroit Corporation to acquire Farmers and Merthe Benton Harbor-St. Joseph banking market, as chants National Bank in Benton Harbor, the largest well as an adverse effect upon the banking struc- bank in the Benton Harbor-St. Joseph banking ture in Michigan. However, the Board does not market, for the reasons set forth in Dissenting believe that the adverse effects on competition Statements to past actions by the Board approving within the Benton Harbor-St. Joseph market and applications by major bank holding companies concentration within Michigan are so adverse as seeking to acquire a banking organization with a to require denial of the proposal. significant presence in one or more markets where The financial and managerial resources of Ap- the applicant was not present.1 We believe that plicant, its subsidiaries, and Bank are regarded as consummation of this proposal would have an satisfactory and the future prospects of Applicant adverse effect upon potential competition which and its subsidiaries appear favorable. The future is not outweighed by convenience and needs conprospects of Bank would be enhanced by this siderations. proposal in light of Applicant's commitment to In this case the largest banking organization in inject additional capital into Bank upon consum- Michigan is seeking to acquire the largest banking mation. organization located in the relevant banking mar- Following consummation of the proposed trans- ket. This proposal is very similar to a number of action, Applicant proposes to expand the services other proposals from major bank holding compaoff ered by Bank by introducing a statement savings nies recently considered by the Board. Moreover, account, offering continuous compounding of in- other similar proposals in other states involving terest on savings accounts, Keogh accounts, and large statewide banking organizations may be a reduced rate short-term mortgage note. Applicant presented to the Board for its consideration in the also intends to introduce or expand trust and auto- near future. We believe that the effects of this mated financial services for Bank's corporate cus- developing trend are not in the public interest. As tomers. Thus, the Board concludes that consid- the language in the majority opinion indicates, the erations relating to the convenience and needs of Board is concerned by this trend but a majority the community to be served lend sufficient weight of the Board has decided that denial is not wartoward approval to outweigh any adverse compet- ranted in this instance. We hope that the Board's itive effects associated with this proposal. Based action in this case as well as its action of Sepon the foregoing and other considerations reflected tember 10 approving, also by a 4-3 vote, the in the record, it is the Board's judgment that the application of First City Bancorporation of Texas proposed acquisition is in the public interest and to acquire First Security National Corporation, that the application should be approved. puts the industry on notice that proposals of this On the basis of the record, the application is approved for the reasons summarized above. The 1. Texas Commerce Bancshares, Inc. (Bancapital Financial transaction shall not be made before the thirtieth Corporation), 63 FEDERAL RESERVE BULLETIN 500 (1977); First City Bancorporation of Texas, Inc. (City National Bank calendar day following the effective date of this of Austin), 63 FEDERAL RESERVE BULLETIN 674 (1977); Order or later than three months after the effective DETROITBANK Corporation, 63 FEDERAL RESERVE BULLE- TIN 926 (1977); Northwest Bancorporation, 63 FEDERAL REdate of this Order, unless such period is extended SERVE BULLETIN 1096 (1977); First City Bancorporation of for good cause by the Board, or by the Federal Texas, Inc. (Lufkin National Bank), 64 FEDERAL RESERVE Reserve Bank of Chicago pursuant to delegated BULLETIN 969 (1978); First City Bancorporation of Texas, Inc. (First Security National Corporation), 64 FEDERAL REauthority. SERVE BULLETIN (Order of September 10, 1979). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

930 Federal Reserve Bulletin • November 1979 type should be very carefully considered before holds 0.13 percent of total commercial bank dethey are presented to the Board. posits in the state. Brownton Bank is the 340th With respect to the specific proposal before us, largest banking organization in Minnesota and we believe that continuation of this trend would holds less than 0.1 percent of total commercial increase the size disparity between the largest bank deposits in the state. Upon consummation banking organizations in Michigan and all other of the proposal, Applicant would become the 43rd banking organizations in the state. In addition, we largest banking organization in the state holding feel the majority's decision may continue to en- 0.17 percent of the state's total commercial bank courage bank holding companies to eschew de deposits. novo or foothold entry into concentrated secondary Glencoe Bank and Brownton Bank are 11 miles markets in Michigan and other holding companies apart. Both banks are within the Hutchinson within other states in the belief that the Board will banking market.2 Glencoe Bank is the second approve less procompetitive means of entry. Ac- largest of 12 banking organizations in that market, cordingly, consummation of this proposal would, holding 12.7 percent of market deposits, and in our view, have an adverse effect upon potential Brownton Bank is the market's eighth largest competition without offering any offsetting pro- banking organization, holding 4.6 percent of marcompetitive benefits or outweighing convenience ket deposits. Upon consummation of the proposal, and needs considerations. Applicant would become the second largest bank- In light of the above, we would deny this ing organization in the market with 17.3 percent application. of market deposits. The two banks have been October 25, 1979 affiliated since 1974 when Applicant's principal, whose family had been associated with Glencoe Bank since 1935, acquired a 50 percent interest in Brownton Bank. This principal increased his Security Bancshares Co., interest in Brownton Bank to 96 percent in 1978 Glencoe, Minnesota after the death of the co-owner. The original Order Approving affiliation of these banks in 1974 and the consoli- Formation of a Bank Holding Company dation of common control in 1978 eliminated existing competition, and consummation of this Security Bancshares Co., Glencoe, Minnesota, proposal would tend to solidify that relationship. has applied for the Board's approval under section However, the largest banking organization in the 3(a)(1) of the Bank Holding Company Act (12 market holds 24.3 percent of market deposits, and U.S.C. § 1842(a)(1)) of formation of a bank in view of the absolute and relative sizes of Glenholding company by acquiring 83.5 percent of the coe Bank and Brownton Bank, the number of voting shares of Security State Bank of Glencoe alternative banking organizations that would re- ("Glencoe Bank"), Glencoe, Minnesota, and 94.7 main in the market after consummation of the percent of the voting shares of The First State Bank proposal, and the fact that the market is relatively of Brownton ("Brownton Bank"), Brownton, unconcentrated, the Board finds that considerations Minnesota. relating to the competitive effects of this proposal Notice of the application, affording opportunity are only slightly adverse. for interested persons to submit comments and The financial and managerial resources and fuviews, has been given in accordance with section ture prospects of Applicant and of Glencoe Bank 3(b) of the Act. The time for filing comments and and Brownton Bank are regarded as generally views has expired, and the Board has considered satisfactory. While Applicant will incur some debt the application and all comments received in light in connection with the proposed transaction, it of the factors set forth in section 3(c) of the Act appears that Applicant will have sufficient flexi- (12 U.S.C. § 1842(c)). bility to retire the debt without adversely affecting Applicant is a nonoperating corporation recently the capital position of either bank. Thus, the Board organized for the purpose of becoming a bank concludes that banking factors are consistent with holding company by acquiring Glencoe Bank (deapproval of the application. Moreover, while acposits of $24.0 million) and Brownton Bank (dequisition of Glencoe Bank and Brownton Bank by posits of $8.8 million).1 Glencoe Bank is the 82nd Applicant would result in no immediate increase largest banking organization in Minnesota and 2. The Hutchinson banking market is approximated by McLeod County, the eastern quarter of Renville County, and 1. Banking data are as of September 30, 1978. the northern quarter of Sibley County, Minnesota. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 931 in either bank's services, there has been an im- continue today. Glencoe Bank now holds 12.7 provement of services in several respects since percent of market deposits, and Brownton Bank Applicant's principal assumed control of Brown- holds 4.6 percent. Upon consummation of this ton Bank. In view of this record and the anticipated proposed transaction, Applicant would hold 17.3 continuation of these benefits, the Board finds that percent of market deposits. I note that the Justice convenience and needs considerations lend suffi- Department will ordinarily challenge mergers becient weight toward approval to outweigh the tween firms if the acquiring firm accounts for 10 slightly adverse competitive considerations asso- percent of an unconcentrated market and the acciated with this application. Accordingly, the quired firm accounts for 4 percent or more. The Board concludes that the proposed transaction market shares of Glencoe Bank and Brownton would be consistent with the public interest and Bank exceed these guidelines. that the application should be approved. Section 3(c) of the Bank Holding Company Act On the basis of the record, the application is requires the Board to consider whether any proapproved for the reasons summarized above. The posed acquisition by a bank holding company (1) transaction shall not be made before the thirtieth would further the monopolization or attempted calendar day following the effective date of this monopolization of a banking market, or (2) may Order or later than three months after the effective substantially lessen competition or tend to create date of this Order, unless such period is extended a monopoly in any banking market. In my view, for good cause by the Board, or by the Federal the subject proposal presents a clear case where Reserve Bank of Minneapolis pursuant to dele- the holding company form is being used to further gated authority. an anticompetitive arrangement. While denial of By order of the Board of Governors, effective this proposal would not immediately result in a October 11, 1979. complete termination of the present situation since Applicant's principal would continue to control Voting for this action: Chairman Volcker and Gover- both banks, it would preserve the distinct possinors Schultz, Coldwell, Partee, and Teeters. Voting bility that Brownton Bank could again become an against this action: Governor Wallich. Absent and not independent organization in the future. In my voting: Governor Rice. view, consummation of the proposal would serve (Signed) GRIFFITH L. GARWOOD, to perpetuate the adverse competitive effects of the [SEAL] Deputy Secretary of the Board. original affiliation. I do not believe that these effects are outweighed by the convenience and needs considerations associated with the proposal Dissenting Statement of Governor Wallich since no new or improved service to the banks' I would deny the application of Security Banc- communities will result from this transaction. shares Co. to become a bank holding company Further, managerial considerations associated by acquiring Security State Bank of Glencoe and with this application reflect policies pursued by The First State Bank of Brownton. In assessing Applicant's principal in the past that have not, in the competitive effects of a proposal involving my view, given sufficient regard to the need to common ownership of more than one bank in the maintain adequate bank liquidity. Rather, the polsame market, the Board in its analysis examines icies appear to have emphasized short-run profitthe competitive effect resulting from the affiliation making to the detriment of liquidity. The formaat the inception of that affiliation.1 In this case tion of this holding company will enable Applithe Board found that the competitive effect of the cant's principal to realize a significant tax advanpurchase of Brownton Bank's shares by Appli- tage, and this tax saving seems to be the only cant's principal had only a slightly adverse effect benefit associated with this proposal. Under the upon competition. I find that the effect of that circumstances, where a proposal involves, in my acquisition was to eliminate significant competi- view, no clear benefit to the public, I question tion that existed at that time between Glencoe whether the Board should further reward an inves- Bank and Brownton Bank in the relevant market tor before he has established a more satisfactory and to increase the concentration of banking re- managerial record. sources within the banking market by eliminating On the basis of this combination of circuman independent competitor. These adverse effects stances reflected in the record I believe this application should be denied. I. See Mahaska Investment Company, 63 FEDERAL RE- SERVE BULLETIN 579 (1977). October 11, 1979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

932 Federal Reserve Bulletin • November 1979 Southeast Banking Corporation, senting 1.2 percent of market deposits. The three Miami, Florida largest banking organizations in the Indian River County market account for approximately 78 per- Order Approving Acquisition of Banks cent of market deposits, and each is substantially larger than Applicant's bank in the market. In Southeast Banking Corporation, Miami, addition, Applicant's subsidiary bank is located 14 Florida, a bank holding company within the miles from all the other banks in the market. In meaning of the Bank Holding Company Act, has view of the above and other facts of record, it filed applications for the Board's approval under appears that the proposal would have only a section 3 of the Act (12 U.S.C. § 1842) to acquire slightly adverse effect upon existing competition First Bancshares of Florida, Inc., Boca Raton, in the Indian River County banking market. Florida ("Bancshares"), by merging Bancshares with a wholly owned subsidiary of Applicant Bancshares has one banking subsidiary in the created for this purpose. Immediately prior to the Martin County banking market (approximated by proposed transaction, Bancshares will divest four Martin County, Florida), where it is the third of its banks and all of its nonbanking subsidiaries. largest bank in the market with $35.8 million in Bancshares' six remaining bank subsidiaries will deposits, representing 12.1 percent of market debe indirectly acquired by Applicant as a result of posits. In the St. Lucie County banking market, this proposal. (approximated by St. Lucie County, Florida), Bancshares' subsidiary bank is the second largest Notice of the applications, affording opportunity with $32.3 million in deposits, representing a 20 for interested persons to submit comments and percent market share. Applicant is not represented views, has been given in accordance with section in either market. In light of the structure of the 3(b) of the Act. The time for filing comments and relevant markets, the fact Applicant is seeking views has expired, and the Board has considered initial entry into these markets, and the deposit the applications and all comments received in light size of the banks to be acquired, it appears that of the factors set forth in section 3(c) of the Act consummation would result in no significant ad- (12 U.S.C. § 1842(c)). verse competitive effects in these two markets. Applicant, the largest banking organization in Florida,1 controls 28 banks with aggregate deposits Applicant also is not currently represented in the Eastern Palm Beach County banking market of approximately $3.1 billion, representing 10.0 (approximated by Eastern Palm Beach County, percent of total commercial bank deposits in the Florida). Bancshares controls five banks in this state. Bancshares' six bank subsidiaries to be inmarket, and is the largest banking organization directly acquired by Applicant hold aggregate detherein, controlling 17 percent of market deposits. posits of approximately $200 million, representing Three of these banks are to be acquired indirectly 0.7 percent of total commercial bank deposits in by Applicant. The three banks Applicant will the state. Upon consummation of the proposal, acquire hold approximately $130 million in de- Applicant's share of commercial bank deposits in posits and thereby control 6.5 percent of total Florida would increase to 10.7 percent. market deposits. Bancshares' two other banks in The competitive effects associated with the subthe market (one of which is Bancshares' lead ject proposal, in addition to the general effect upon banking subsidiary with $188 million in deposits), the structure of banking in Florida, must be conwill be spun off to a new bank holding company sidered within four separate banking markets—Inunrelated to Applicant prior to consummation of dian River County, Eastern Palm Beach County, this proposal. Thus, consummation of the pro- Martin County, and St. Lucie County. Applicant posed transaction will result in an increase in the is the fifth largest of six banking organizations total number of competitors in the market. At the located in the Indian River County banking market same time, market concentration will decrease and (approximated by Indian River County, Florida) the share of the market held by the three largest controlling one subsidiary bank with deposits reporganizations will decline from 42 to 35 percent. resenting 9.7 percent of total market deposits. In view of the above, the Board regards the effects Bancshares also operates one subsidiary bank in of the proposal within the Eastern Palm Beach this market, with deposits of $2.1 million, reprebanking market as procompetitive. The financial and managerial resources and future prospects of Bancshares and the subsidiaries 1. All banking data are as of June 30, 1978, and reflect of Bancshares to be acquired are also regarded as bank holding company formations and acquisitions approved as of June 30, 1979. generally satisfactory, particularly in view of cer- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 933 tain commitments made by Applicant regarding been considered in light of the factors set forth this proposal. Convenience and needs consid- in section 3(c) of the Act (12 U.S.C. § 1842(c)). erations are viewed as lending weight toward ap- Applicant, the sixth largest banking organiproval of the proposal. Such benefits to the com- zation in Texas, controls 17 banks with aggregate munities to be served will result in part from the deposits of approximately $2.35 billion, repregreater expertise and specialization of services that senting 3.46 percent of total deposits in commer- Bancshares can offer its customers through affilia- cial banks in the state.1 Acquisition of Bank, the tion with Applicant. On balance, these conven- 161st largest banking organization in the state with ience and needs considerations, when coupled with deposits of $48.2 million, would increase Applithe expected procompetitive effects in the Eastern cant's share of commercial bank deposits in Texas Palm Beach market, are sufficient to outweigh any by only 0.07 percent and would not alter Appliadverse effects on existing competition or upon cant's ranking in the state. the concentration of statewide banking resources Bank is the 31st largest of 108 banking organiassociated with this proposal. On the basis of the zations in the Dallas banking market,2 controlling foregoing and other facts in the record, it is the 0.40 percent of the total commercial bank deposits Board's judgment that approval of the proposal in the market. Applicant is the tenth largest bankwould be in the public interest. ing organization in the Dallas market, controlling On the basis of the facts of record, the applica- four banking subsidiaries in that market with agtion is approved for the reasons summarized gregate deposits of $150.6 million, representing above. This transaction shall not be consummated 1.1 percent of the market's commercial bank debefore the thirtieth calendar day following the posits. Although consummation of the proposed effective date of this Order, nor later than three transaction will cause Applicant to become the months after the effective date of this Order, unless eighth largest organization in the market, Applisuch periods are extended for good cause by the cant's share of the market will rise to only 1.5 Board or by the Federal Reserve Bank of Atlanta percent, and Applicant will remain one of six pursuant to delegated authority. banking organizations in the market holding be- By order of the Board of Governors, effective tween one and five percent of market deposits. October 5, 1979. Although consummation of the proposal would eliminate some existing competition between Bank Voting for this action: Chairman Volcker and Gover- and Applicant's subsidiary banks, in view of the nors Schultz, Wallich, Coldwell, Partee, and Teeters. relative size of these organizations, their market Absent and not voting: Governor Rice. shares, and the number of remaining banking (Signed) GRIFFITH L. GARWOOD, alternatives in the market, it appears that consum- [SEAL] Deputy Secretary of the Board. mation of this proposal would not have significant adverse effects upon competition in the relevant market. Accordingly, in light of the above and other facts of record, it is concluded that consum- Southwest Bancshares, Inc., mation of the proposed acquisition would have Houston, Texas only a slightly adverse effect on competition in Order Approving Acquisition of Bank the Dallas banking market. The financial and managerial resources and fu- Southwest Bancshares, Inc., Houston, Texas, ture prospects of Applicant, its subsidiaries, and a bank holding company within the meaning of Bank are regarded as generally satisfactory, parthe Bank Holding Company Act, has applied for ticularly in light of Applicant's commitment to the Board's approval under section 3(a)(3) of the increase Bank's equity capital upon consummation Act (12 U.S.C. § 1842(a)(3)) to acquire all of the of the proposal. Thus, considerations relating to voting shares (less directors' qualifying shares) of banking factors are consistent with approval of the Dallas Bank and Trust Company ("Bank"), Dallas, Texas. Notice of the application, affording opportunity 1. All banking data are as of December 3 1, 1978, and reflect for interested persons to submit comments and bank holding company formations and acquisitions approved as of July 31, 1979. views, has been given in accordance with section 2. The relevant banking market is approximated by the 3(b) of the Act (12 U.S.C. § 1842(b)). The time Dallas Ranally Metropolitan Area as defined by Rand McNally & Company's Commercial Atlas & Marketing Guide. It infor filing comments and views has expired, and cludes Dallas County and portions of Tarrant, Collin, Denton, the application and all comments received have Ellis, Kaufman, and Rockwall Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

934 Federal Reserve Bulletin • November 1979 application. Affiliation with Applicant will enable dation of NB and SBI under the name and charter Bank to draw upon Applicant's expertise and to of Jefferson Bankshares, Inc., Charlottesville, introduce new and improved services to its cus- Virginia ("Jefferson"). Applicants also have aptomers, including a flexible loan repayment pro- plied for the Board's approval, pursuant to section gram and automated teller machines. In addition, 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and Bank will be able to otter credit life and credit sections 225.4(a)(8), (9) and (10) of the Board's accident and health insurance to its customers Regulation Y (12 C.F.R. §§ 225.4(a)(8), (9) and through Applicant's insurance subsidiary at rates (10)) to continue to engage after consolidation in lower than those currently being charged by Bank. certain nonbanking activities currently conducted Thus, considerations relating to the convenience by their nonbank subsidiaries. In particular, NB and needs of the community to be served lend currently engages in financial bookkeeping and sufficient weight toward approval of the applica- related data processing services through its subtion to outweigh any slightly adverse competitive sidiary, NB Service Corporation, Charlottesville, effects that might result from consummation of this Virginia ("NB Service") and SBI engages through proposal. Accordingly, it has been determined that Charter Insurance Managers, Inc. in the sale as the proposed acquisition would be in the public agent and in the underwriting of life and accident interest and that the application should be ap- and health insurance directly related to extensions proved. of credit by SBI's subsidiary banks. Applicants On the basis of the record, the application is propose to continue to engage in these activities approved for the reasons summarized above. The after consolidation and to expand the insurance transaction shall not be made before the thirtieth activities to include the sale and underwriting of calendar day following the effective date of this life and accident and health insurance in connec- Order, or later than three months after the effective tion with extensions of credit made by NB's subdate of this Order unless such period is extended sidiary banks that would become Jefferson's subfor good cause by the Board, or by the Federal sidiaries upon consummation of this merger. Reserve Bank of Dallas pursuant to delegated Notice of the application, affording opportunity authority. for interested persons to submit comments and By Order of the Secretary of the Board, acting views, has been given in accordance with sections pursuant to delegated authority for the Board of 3 and 4 of the Act. The time for filing comments Governors, effective October 12, 1979. and views has expired, and the Board has considered the applications and all comments received (Signed) GRIFFITH L. GARWOOD, in light of the factors set forth in section 3(c) of [SEAL] Deputy Secretary of the Board. the Act (12 U.S.C. § 1842(c)), and the considerations specified in section 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)). SBI, the ninth largest banking organization in Order Under Sections 3 and 4 Virginia, controls three banks with total deposits of Bank Holding Company Act of approximately $281.9 million, representing 1.6 percent of total deposits in commercial banks NB Corporation, in the state.1 NB, the tenth largest banking orga- Charlottesville, Virginia, nization in the state, controls three banks with total Southern Bankshares, Inc., deposits of approximately $281.5 million, repre- Richmond, Virginia senting 1.6 percent of total deposits in commercial Order Approving Merger of banks in Virginia. SBI primarily competes in an Bank Holding Companies urban banking market in Virginia while NB and Acquisition of NB Service Corporation and operates for the most part in rural banking markets Charter Insurance Managers, Inc. in the state. The banking services offered by the bank subsidiaries of these two organizations reflect NB Corporation, Charlottesville, Virginia this difference in market orientation. Furthermore, ("NB") and Southern Bankshares, Inc., Rich- neither organization has established a significant mond, Virginia ("SBI") (together "Applicants"), presence outside the market in which its lead bank both bank holding companies within the meaning competes. Upon consummation of the proposed of the Bank Holding Company Act, have applied for the Board's approval under section 3(a)(5) of the Act (12 U.S.C. § 1842(a)(5)) of the consoli- 1. All banking data are as of December 31, 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 935 transaction, Jefferson would become the ninth expanded services to their customers. The Board largest banking organization in the state control- concludes that considerations relating to the conling approximately 3.2 percent of total deposits venience and needs of the communities to be in Virginia. On the basis of the facts of record, served lend weight toward approval and are suffiincluding the overall structure of banking in Vir- cient to outweight any slightly adverse competitive ginia, the Board does not view the proposed con- effects that may be associated with this proposal. solidation as having any serious effect on the Accordingly, it is the Board's judgment that the concentration of banking resources in Virginia. proposed consolidation would be in the public SBI's lead bank, Southern Bank, Richmond, interest and that the application to consolidate Virginia, the fifth largest of 18 banking organi- should be approved. zations in the Richmond banking market,2 controls Applicants also propose pursuant to section $260.5 million in deposits, representing 8.9 per- 225.4(a)(8) of Regulation Y (12 C.F.R. cent of the market's deposits in commercial banks. § 225.4(a)(8)), to continue to engage in financial One of NB's subsidiary banks, NB Bank of Rich- bookkeeping and related data processing services mond, Richmond, Virginia ("NB Bank"), through NB Service and to continue to engage in operates in the Richmond banking market. NB the underwriting and sale of life and accident and Bank with deposits of $17.9 million, representing health insurance directly related to extensions of 0.6 percent of commercial bank deposits in the credit by SBI's subsidiary banks through Charter market is one of the smaller banks in the market. Insurance Managers, Inc., and to expand these In view of the share of market deposits held by insurance activities to extensions of credit made NB's subsidiary bank, the large number of banking by NB's subsidiary banks that would become alternatives and other competitive characteristics Jefferson's subsidiaries upon consummation of this of the market, it appears that the effect of the proposal. These insurance activities have been merger on existing competition in the Richmond determined to be permissible for bank holding banking market would not be significant. companies (12 C.F.R. §§ 225.4(a)(9) and (10)). With the exception of the Richmond banking No nonbank subsidiary of SBI or NB competes market, the banking subsidiaries of SBI and NB with any bank or nonbank subsidiary of the other do not directly compete in any banking market. organization. Accordingly, the Board concludes However, there are other banking markets in Vir- that no adverse competitive effects on nonbank ginia in which bank subsidiaries of SBI or NB, competition would result from approval of the but not both, presently operate offices. Based upon application to continue to engage in and to expand an examination of these markets and the divergent certain nonbank activities. There is no evidence market preferences of Applicants, it does not ap- in the record indicating that consummation of the pear likely that SBI and NB would become com- proposal would result in any undue concentration petitors in the future. Accordingly, the Board of resources, unfair competition, conflicts of inconcludes that consummation of the proposal to terest, unsound banking practices or other adverse consolidate would not have any adverse effects on effects on the public interest. Based on the forepotential competition in any market. going and other considerations reflected in the The financial and managerial resources and fu- record, it has been determined that the balance ture prospects of Jeff erson and its subsidiary banks of the public interest factors that must be considare considered satisfactory and the Board con- ered under section 4(c)(8) favors approval of Apcludes that banking factors are consistent with plicants' proposal, and the application to engage approval. Following consummation of the pro- in financial bookkeeping, related data processing posed transaction Applicants intend to introduce services, and in the underwriting and sale of new and expanded services for their customers. credit-related insurance should be approved. Trust services will be made available to customers Accordingly, the applications to merge NB and of NB Bank and customers of certain banks will SBI into Jefferson and to engage in certain nonreceive higher interest rates on savings deposits. banking activities are hereby approved for the In addition, as a result of consummation of the reasons summarized above. The consolidation proposed merger, Jefferson's subsidiary banks will shall not be made before the thirtieth calendar day be able to offer increased lending limits and other following the effective date of this Order; and neither the consolidation nor the commencement of nonbanking activities shall be made later than 2. The Richmond banking market is approximated by the three months after the effective date of this Order, Richmond SMS A with the exception of New Kent County, unless such periods are extended for good cause Virginia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

936 Federal Reserve Bulletin • November 1979 by the Board of Governors, or by the Federal vertising programs. Subject to several limitations, Reserve Bank of Richmond pursuant to delegated which Company will observe, this activity has authority. The determination as to Jefferson's been determined by the Board to be closely related nonbanking activities is subject to the conditions to banking (12 C.F.R. § 225.4(a)(12)). set forth in section 225.4(c) of Regulation Y and Notice of the application, affording opportunity to the Board's authority to require reports by, and for interested persons to submit comments on the make examinations of, bank holding companies public interest factors, has been duly published (43 and their subsidiaries and to require such modifi- Federal Register 47611 (1979)). The time for cation or termination of the activities of a bank filing comments has expired, and the Board has holding company or any of its subsidiaries as the considered the application and all comments re- Board finds necessary to assure compliance with ceived in the light of the public interest factors the provisions and purpose of the Act and the set forth in section 4(c)(8) of the Act. Board's regulations and orders issued thereunder, Applicant, the fourth largest banking organior to prevent evasion thereof. zation in Ohio, controls 18 banks with aggregate By order of the Board of Governors, effective deposits of approximately $1.9 billion,1 repre- October 22, 1979. senting 4.97 percent of the total deposits in commercial banks in Ohio. Applicant also engages, Voting for this action: Chairman Volcker and Gover- through Company, in leasing and mortgage banknors Schultz, Wallich, Coldwell, Partee, Teeters, and ing activities. Rice. Governors Schultz and Wallich abstained from Company proposes to provide its management voting on the section 4(c)(8) application to engage in insurance activities. consulting to nonaffiliated banks located throughout the United States. Applicant has substantial (Signed) GRIFFITH L. GARWOOD, experience in providing these services for its sub- [SEAL] Deputy Secretary of the Board. sidiary banks. Applicant's entry into the field de novo would provide an additional competitor offering this specialized financial and consulting advice and would have no adverse effects on Orders Under Section 4 of existing or potential competition in any relevant Bank Holding Company Act area. Applicant's provision of such services would benefit those institutions that lack sufficient re- First Banc Group of Ohio, Inc., sources to develop in-house expertise in a broad Columbus, Ohio range of specialized areas. Moreover, availability Order Approving Activity of of this advice on an explicit fee basis, rather than Furnishing Management Consulting Advice to as part of a correspondent banking service, will Nonaffiliated Banks enable client banks to more accurately analyze the cost of such services and such banks may be able First Banc Group of Ohio, Inc., Columbus, to more efficiently allocate their funds. Ohio, a bank holding company within the meaning There is no evidence in the record indicating of the Bank Holding Company Act, has applied that consummation of the proposed transaction for the Board's approval, under section 4(c)(8) of would result in any undue concentration of rethe Act (12 U.S.C. § 1843(c)(8)) and section sources, unfair competition, conflicts of interest, 225.4(b)(2) of the Board's Regulation Y (12 unsound banking practices, or other adverse ef- C.F.R. § 225.4(b)(2)), to engage de novo, through fects on the public interest. Furthermore, Appliits subsidiary, First Banc Group Financial Services cant is aware of the prohibitions concerning tie-ins Corporation ("Company"), Columbus, Ohio, in contained in section 106 of the Act (12 U.S.C. the activities of furnishing management consulting § 1972) and the Board's Regulation Y (12 C.F.R. advice to nonaffiliated banks. Company specifi- § 225.4(c)) and will comply with those prohibically proposes to provide advice concerning bank tions. operations, systems, and procedures; computer Based upon the foregoing and other considoperations and mechanization; implementation of erations reflected in the record, the Board has electronic funds transfer systems; site planning and evaluation; bank mergers and the establishment of new branches; cost analysis; capital adequacy and planning; product development, including specialized lending provisions; and marketing operations, 1. All banking data are as of September 30, 1978, and reflect bank holding company formations and acquisitions apincluding research, market development, and adproved as of April 30, 1979. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 937 determined, in accordance with the provisions of Cheque Corporation), 59 FEDERAL RESERVE BULsection 4(c)(8), that consummation of this proposal LETIN 544 (1973); and Republic of Texas Corcan reasonably be expected to produce benefits to poration, 62 FEDERAL RESERVE BULLETIN 630 the public that outweight possible adverse effects. (1976))1. As noted in these earlier Board deci- Accordingly, the application is approved. This sions, banks have in fact engaged in the issuance determination is subject to the conditions set forth of travelers checks and generally have engaged in in section 225.4(c) of Regulation Y and to the activities that are operationally and functionally Board's authority to require such modification or similar to the proposed activity. Accordingly, the termination of the activities of a holding company Board has determined that issuing travelers checks or any of its subsidiaries as the Board finds neces- as Applicant proposes is closely related to banksary to assure compliance with the provisions and ing.2 purposes of the Act and the Board's regulations Notice of the application, affording opportunity and orders issued thereunder, or to prevent evasion for interested persons to submit comments and thereof. views on the public interest factors, has been duly The transaction shall be made not later than published (44 Federal Register 47,612). The time three months after the effective date of this Order, for filing comments and views has expired, and unless such period is extended for good cause by the Board has considered the application and all the Board or by the Federal Reserve Bank of comments received in the light of the public inter- Cleveland. est factors set forth in § 4(c)(8) of the Act (12 By order of the Board of Governors, effective U.S.C. § 1843(c)(8)). October 1, 1979. Applicant, the second largest banking organization in Illinois, has one subsidiary bank with Voting for this action: Chairman Volcker and Goverdeposits of $9.7 billion, representing 13.6 percent nors Schultz, Coldwell, Partee, Teeters, and Rice. Abof total deposits in commercial banks in the state.3 sent and not voting: Governor Wallich. In addition, Applicant engages in a variety of (Signed) GRIFFITH L. GARWOOD, nonbank activities, including leasing, real estate [SEAL] Deputy Secretary of the Board. lending, data processing, and commercial and consumer financing. Applicant, through Cheque Corporation, proposes to issue and sell Visa Travelers Cheques. Cheque Corporation would issue and distribute First Chicago Corporation, these checks worldwide to both financial and non- Chicago, Illinois financial agents, who would sell the checks to the Order Approving Formation of public on behalf of Cheque Corporation. The five First Chicago Cheque Corporation major travelers check issuers currently control an estimated 86 percent of total worldwide travelers First Chicago Corporation, Chicago, Illinois, a check sales, with the largest issuer, American bank holding company within the meaning of the Express Company, accounting for more than 50 Bank Holding Company Act ("Act"), has applied percent of the market. for the Board's approval, under section 4(c)(8) of The Board has previously determined that it the Act (12 U.S.C. § 1843(c)(8)) and section would be in the public interest for bank holding 225.4(b)(2) of the Board's Regulation Y (12 companies, having the capability, to engage in the C.F.R. § 225.4(b)(2)), to engage, through its de activity of issuing travelers checks, in view of the novo subsidiary, First Chicago Cheque Corporalimited number of competitors currently servicing tion ("Cheque Corporation"), Chicago, Illinois, this industry.4 Applicant's entry into this industry in the issuance and sale of travelers checks. should serve to enhance competition in providing The Board has not amended its Regulation Y (12 C.F.R. § 225) to include the issuance of 1. On February 26, 1979, the Board amended Regulation travelers checks as a permissible activity, but in Y (12 C.F.R. § 225.4(a)) to include on its list of permissible connection with three earlier applications the activities for bank holding companies the retail sale of travelers Board determined by order that the activity of checks. (65 FEDERAL RESERVE BULLETIN 265 (1979)). 2. See National Courier Association v. Board of Governors issuing travelers checks is closely related to bankof the Federal Reserve System, 516 F.2d 1229 (D.C. Cir. ing and would be in the public interest. (Citicorp 1975). (travelers checks), 65 FEDERAL RESERVE BULLE- 3. All deposit data are as of June 30, 1978. 4. See the above cited Board decisions on the issuance of TIN 666 (1979); BankAmerica Corporation (BA travelers checks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 938 Federal Reserve Bulletin • November 1979 this service. Accordingly, it is the Board's view Currency, and the Federal Deposit Insurance Corthat approval of this application would produce poration. The Board has considered the application benefits to the public and would be in the public and all comments and reports received including interest. Furthermore, there is no evidence in the those of the Comptroller of the Currency and the record to indicate that Applicant's engaging in this FDIC, in light of the factors set forth in the Act. activity would lead to any undue concentration of This proposal merely represents a corporate resources, unfair competition, conflicts of inter- reorganization of two subsidiaries of Jefferson ests, unsound banking practices, or other adverse Bankshares, Inc., Charlottesville, Virginia ("Jefeffects. ferson"). On the basis of the record in this case, Based upon the foregoing and other consid- the application is approved for the reasons sumerations reflected in the record, the Board has marized in the Board's order of this date relating determined that the balance of the public interest to the application of NB Corporation, Charlottesfactors the Board is required to consider under ville, Virginia, and Southern Bankshares, Inc., section 4(c)(8) is favorable. Accordingly, the ap- Richmond, Virginia, to merge under the name and plication is hereby approved. This determination charter of Jefferson. is subject to the conditions set forth in section The transaction shall not be consummated be- 225.4(c) of Regulation Y and to the Board's au- fore the thirtieth calendar date following the efthority to require such modification or termination fective date of this Order, or later than three of the activities of a holding company or any of months after the effective date of this Order unless its subsidiaries as the Board finds necessary to such period is extended for good cause by the assure compliance with the provisions and pur- Board of Governors or by the Federal Reserve poses of the Act and the Board's regulations and Bank of Richmond acting pursuant to delegated orders issued thereunder, or to prevent evasion authority. thereof. By order of the Board of Governors, effective The transaction shall be made not later than October 22, 1979. three months after the effective date of this Order, Voting for this action: Chairman Volcker and Goverunless such period is extended for good cause by nors Schultz, Wallich, Coldwell, Partee, Teeters, and the Board or by the Federal Reserve Bank of Rice. Chicago. By order of the Board of Governors, effective (Signed) GRIFFITH L. GARWOOD, October 29, 1979. [SEAL] Deputy Secretary of the Board. Voting for this action: Chairman Volcker and Governors Schultz, Wallich, Coldwell, Partee, Teeters, and Rice. Certifications Pursuant to the (Signed) GRIFFITH L. GARWOOD, Bank Holding Company Tax Act of 1976 [SEAL] Deputy Secretary of the Board. Chippewa Valley Agency Ltd., Inc., Winter, Wisconsin Order Approved Under Bank Merger Act Prior Certification Pursuant to the Southern Bank, Bank Holding Company Tax Act of 1976 Richmond, Virginia [Docket No. 76-178] Order Approving Application for Merger of Banks Chippewa Valley Agency Ltd., Inc., ("Chip- Southern Bank, Richmond, Virginia, has ap- pewa"), Winter, Wisconsin, has requested a prior plied for the Board's approval under the Bank certification pursuant to section 6158(a) of the Merger Act (12 U.S.C. § 1828(c)) to merge with Internal Revenue Code ("Code") as amended by NB Bank of Richmond, Richmond, Virginia. The section 3(a) of the Bank Holding Company Tax resulting bank will operate under the charter and Act of 1976 ("Tax Act"), that the proposed sale name of Southern Bank. of its subsidiary, Winter Insurance Agency As required by the Bank Merger Act, notice ("Winter"), Winter, Wisconsin, a general insurof the proposed merger has been published and ance agency, is necessary or appropriate to effecreports on competitive factors have been requested tuate section 4 of the Bank Holding Company Act from the Attorney General, the Comptroller of the (12 U.S.C. § 1843 et. seq.) (BHC Act). Chippewa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 939 proposes to sell Winter to Exeland Enterprises A. Chippewa is a qualified bank holding cor- ("Exeland"), Winter, Wisconsin, for cash. poration within the meaning of section 6158(f)(1) In connection with this request, the following and 1103(b) of the Code; information is deemed relevant for purposes of B. The assets of Winter that Chippewa proissuing the requested certification.1 poses to sell to Exeland are 4'prohibited property" 1. Chippewa (formerly The Hegeholz Agency, within the meaning of section 6158(f)(2) of the Inc.) is a corporation organized under the laws Code; of Wisconsin on December 13, 1968. On January C. The sale of Winter is necessary or appro- 10, 1969, Chippewa acquired ownership and con- priate to effectuate section 4 of the BHC Act. trol of 400 shares, representing 66% percent of This certification is based upon the reprethe outstanding voting shares, of Chippewa Valley sentations made to the Board by Chippewa and Bank ("Bank"), Winter, Wisconsin. upon the facts set forth above. In the event the 2. Chippewa became a bank holding company Board should hereafter determine that facts mateon December 31, 1970, as a result of the 1970 rial to this certification are otherwise than as repamendments to the Bank Holding Company Act resented by Chippewa, or that Chippewa has by virtue of its ownership and control at that time failed to disclose to the Board other material facts, of more than 25 percent of the outstanding voting it may revoke this certification. shares of Bank, and it registered as such with the By order of the Board of Governors acting Board on June 29, 1971. Chippewa would have through its General Counsel, pursuant to delegated been a bank holding company on July 7, 1970, authority (12 C.F.R. § 265.2(b)(3)), effective Ocif the Bank Holding Company Act Amendments tober 2, 1979. had been in effect on such date by virtue of its ownership and control on that date of more than (Signed) GRIFFITH L. GARWOOD, 25 percent of the outstanding voting shares of [SEAL] Deputy Secretary of the Board. Bank. Chippewa now owns and controls 91 percent of the outstanding voting shares of Bank. 3. Winter was formed in 1919, and is engaged Kemper Corporation, in general insurance agency business. On January Long Grove, Illinois 10, 1969, Chippewa acquired all the assets of Winter from Bank. Chippewa did not file an ap- Prior Certification Pursuant to the plication with the Board, and did not otherwise Bank Holding Company Tax Act of 1976 obtain the Board's approval pursuant to section [Docket No. TCR 76-1921 4(c)(8) of the BHC Act to retain Winter or engage in the activities carried on by Winter.2 Kemper Corporation, Long Grove, Illinois 4. No director, officer or employee with policy ("Kemper") has requested a prior certification making functions of Chippewa or any of its sub- pursuant to section 6 1 58(a) of the Internal Revenue sidiaries (including honorary and advisory direc- Code ("Code"), as amended by section 3(a) of tors) holds any such position with Exeland. Chip- the Bank Holding Company Tax Act of 1976 pewa does not control in any manner the election ("Tax Act"), that its proposed sale of 47.205 of a majority of the directors or exercise a con- shares of common stock ("Bank Shares") of Bank trolling influence over the management on policies of Chicago, Chicago, Illinois, ("Bank"), to Wilof Exeland or its subsidiaries. liam R. Cottle, Chicago, Illinois, and Gary R. On the basis of the foregoing information, it Edidin, Northbrook, Illinois, for themselves as is hereby certified that: principals and as agents for undisclosed principals (together referred to as 4'Buyers") for cash, is necessary or appropriate to effectuate the policies 1. This information derives from Chippewa's corre- of the Bank Holding Company Act (12 U.S.C. spondence with the Board concerning its request for this § 1842 et. seq.) ("BHC Act"). certification, Chippewa's Registration Statement filed with the Board pursuant to the BHC Act, and other records of the Board. In connection with this request, the following 2. Some or all of Winter's activities may be among those information is deemed relevant for purposes of activities that the Board previously has determined to be closely issuing the requested certification:1 related to banking under § 4(c)(8) of the BHC Act. However, in the absence of approval by the Board of an application by Chippewa to retain Winter, Chippewa may not retain Winter beyond December 31, 1980. (CF. Wachovia Corp., Docket No. TCR 76-132, 63 FEDERAL RESERVE BULLETIN 606 (May 1. This information derives from Kemper's correspondence 9, 1977)). with the Board concerning its request for this certification, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 940 Federal Reserve Bulletin • November 1979 1. Kemper is a corporation organized and ex- tion within the meaning of section 1 103(b) of the isting under the laws of the State of Delaware. Code, and satisfies the requirements of that sec- 2. On May 31, 1968, through an exchange of tion; its shares, Kemper acquired ownership and control B. Bank Shares covered by the instant request of 47,228 shares, representing 94.46 percent of are the property by reason of which Kemper conthe outstanding voting shares, of Bank. trols (within the meaning of section 2(a) of the 3. Kemper became a bank holding company on BHC Act) a bank; and December 31, 1970, as a result of the 1970 C. the sale of such shares is necessary or ap- Amendments to the BHC Act, by virtue of its propriate to effectuate the policies of the BHC Act. ownership and control at that time of more than This certification is based upon the repre- 25 percent of the outstanding voting shares of sentations and commitments made to the Board Bank. Kemper would have been a bank holding by Kemper and upon the facts set forth above. company on July 7, 1970, if the BHC Act In the event the Board should determine that facts Amendments of 1970 had been in effect on such material to this certification are otherwise than as date, by virtue of ownership and control on that represented by Kemper, or that Kemper has failed date of more than 25 percent of the outstanding to disclose to the Board other material facts or voting shares of Bank. Kemper currently owns to fulfill any commitments made to the Board in 47,205 shares, representing 94.41 percent of the connection herewith, it may revoke the certifioutstanding voting shares, of Bank. cation. 4. Kemper holds property acquired by it on or By order of the Board of Governors, acting before July 7, 1970, the disposition of which through its General Counsel, pursuant to delegated would be necessary or appropriate under section authority, effective October 23, 1979. 4 of the BHC Act if Kemper were to remain a bank holding company beyond December 31, (Signed) GRIFFITH L. GARWOOD, 1980, and which property is "prohibited prop- [SEAL] Deputy Secretary of the Board. erty" within the meaning of section 1103(c) of the Code. 5. On May 27, 1971, Kemper filed with the Board an irrevocable declaration pursuant to sec- Determination Under Section 2 of tion 225.4(d) of the Board's Regulation Y that it Bank Holding Company Act would cease to be a bank holding company prior to January 1, 1981, by divesting itself of all of First Charter Financial Corporation, its interest in Bank. In accordance with that portion Syracuse, Indiana of the regulation and Kemper's commitment, Order Granting Determination Kemper has been permitted to expand its non- Under the Bank Holding Company Act banking activities without seeking the Board's prior approval. First Charter Financial Corporation ("First"), 6. Kemper has committed that after the sale of Syracuse, Indiana, a bank holding company within Bank Shares, no person who is a director or officer the meaning of the Bank Holding Company Act, of Kemper or its parent or subsidiaries will serve has requested a determination under section in a similar capacity with Bank. In addition, all 2(g)(3) of the Act (12 U.S.C. § 1841(g)(3)) that persons affiliated with Kemper currently serving First is not in fact capable of controlling William as directors or officers of Bank will resign their K. Nellans, Inc. ("Nellans") or its principals, positions effective as of the closing date of the William K. Nellans and Christine G. Nellans sale. Kemper has further committed that none of ("Nellans principals"), notwithstanding the fact Buyers is, or will be, indebted to Kemper, and that Nellans and the Nellans principals are inthat none of Buyers is affiliated in any way with debted to First. This request has been made in Kemper. connection with the sale to Nellans by First of On the basis of the foregoing information, it substantially all the assets of First Charter Insuris hereby certified that: ance Agency ("Agency"), Syracuse, Indiana. A. Kemper is a qualified bank holding corpora- Under the provisions of section 2(g)(3) of the Act, shares transferred after January 1, 1966, by any bank holding company to a transferee that is indebted to the transferor, or has one or more Kemper's Registration Statement filed with the Board pursuant to the BHC Act, and other records of the Board. officers, directors, trustees, or beneficiaries in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 941 common with or subject to control by the trans- thermore, although Nellans and the Nellans feror are deemed to be indirectly owned or con- principals are indebted to First for a substantial trolled by the transferor unless the Board, after portion of the purchase price, it appears that the opportunity for hearing, determines that the trans- Nellans principals' personal financial resources are feror is not in fact capable of controlling the substantial enough to support the conclusion that transferee. In addition, the transfer of substantially First is not in fact capable of controlling them or all the assets of a company is deemed by the Board Agency by reason of that indebtedness. Finally, to involve a transfer of "shares" of that company First has stated that should it reacquire Agency for purposes of section 2(g)(3) of the Act (12 assets as a result of Nellans' default, it will advise C.F.R. § 225.139). the Federal Reserve System and promptly dispose First has not requested a hearing, but it has of them. Accordingly, it is ordered that the request submitted evidence to support its contention that of First for a determination pursuant to section it is not in fact capable of controlling Nellans or 2(g)(3) is granted. This determination is based on the Nellans principals. On the basis of the evidence representations made to the Board by First and of record, including the following facts and com- Nellans. In the event that the Board should mitments, it is hereby determined that First is not hereafter determine that facts material to this dein fact capable of controlling Nellans or the Nel- termination are otherwise than as represented, or lans principals. The sale of Agency to Nellans was that First or Nellans has failed to disclose to the negotiated at arm's length, and the Nellans Board other material facts, this determination may principals are not officers, directors, or share- be revoked, and any change in the facts and holders of First or any of its subsidiaries. First circumstances relied upon in making this determihas no security interest in the Agency assets sold, nation could result in the Board's reconsideration and the terms governing the debt relationship be- of this determination. tween the parties are limited to those reasonably By order of the Board of Governors, acting required for the protection of First's interests as through its General Counsel, pursuant to delegated creditor. First's board of directors has adopted a authority (12 C.F.R. § 265.2(b)(1)), effective resolution that First does not, and will not attempt October 3, 1979. to, exercise control over Agency, Nellans, or any (Signed) GRIFFITH L. GARWOOD, of their officers, directors, or shareholders. Fur- [SEAIJ 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, Room MP-510, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Board action (effective Applicant Bank(s) date) C.S.B. Financial, Inc., Chetek State Bank, October 12, 1979 Chetek, Wisconsin Chetek, Wisconsin Dublin Bancshares, Inc., The Dublin National Bank, October 17, 1979 Dublin, Texas Dublin, Texas First Security Corporation, First Security Bank of St. George, N.A. October 30, 1979 Salt Lake City, Utah St. George, Utah First United Bancorporation, Inc. University Bank, October 1, 1979 Fort Worth, Texas Fort Worth, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 942 Federal Reserve Bulletin • November 1979 Section 3 Board action (effective Applicant Bank(s) date) First Bank Corporation, Shepherd State Bank, October 2, 1979 Midland, Michigan Shepherd, Michigan Loof Investment Co., Peoples Trust and Savings Bank, October 23, 1979 Grand Junction, Iowa Grand Junction, Iowa Onarga Bancorp, Inc., B & B Management Corp., October 15, 1979 Onarga, Illinois Onarga, Illinois Osceola Bancorporation, Inc. Bank of Osceola, October 5, 1979 Osceola, Wisconsin Osceola, Wisconsin By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Batiks as listed below. Copies of the orders are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date Trust Company of Georgia, The Citizens Bank, Atlanta October 23, 1979 Atlanta, Georgia Douglasville, Georgia Section 4 Nonbanking company Reserve Effective Applicant (or activity) Bank date Wells Cargo & Company Underwriting credit life insurance San Francisco Sept. 19, 1979 directly related to extensions of credit by Applicant and its credit extending subsidiaries ORDERS APPROVED UNDER BANK MERGER ACT Reserve Effective Applicant Bank(s) Bank date The Exchange Bank of The Exchange National Bank Atlanta October 26, 1979 Temple Terrace, of Tampa, Temple Terrace, Florida Tampa, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 943 PENDING CASES INVOLVING THE BOARD OF GOVERNORS Does not include suits against the Federal Reserve Banks in which the Board of Governors is not Credit and Commerce American Investment, et named a party. al., v. Board of Governors, filed March 1979 U.S.C.A. for the District of Columbia. County National Bancorporation and TGB Co. v. Consumers Union of the United States, v. Board of Governors, filed September 1979, G. William Miller, etal., filed December 1978, U.S.C.A. for the Eighth Circuit. U.S.D.C. for the District of Columbia. State of Indiana v. The United States of America, Manchester-Tower Grove Community Organiet al., filed September 1979, U.S.D.C. for the zation/ACORN v. Board of Governors, filed District of Columbia. September 1978, U.S.C.A. for the District of Edwin F. Gordon v. Board of Governors, et al., Columbia. filed August 1979, U.S.D.C. for the Northern Beckley v. Board of Governors, filed July 1978, District of Georgia. U.S.C.A. for the Northern District of Illinois. Edwin F. Gordon v. Board of Governors, et al., Independent Bankers Association of Texas v. First filed August 1979, U.S.C.A. for the Fifth Cir- National Bank in Dallas, et al., filed July 1978, cuit. U.S.C.A. for the Northern District of Texas. American Bankers Association v. Board of Gov- Mid-Nebraska Bancshares, Inc. v. Board of Governors, et al., filed August 1979, U.S.D.C. for ernors, filed July 1978, U.S.C.A. for the Disthe District of Columbia. trict of Columbia. Donald W. Riegel, Jr. v. Federal Open Market United States League of Savings Associations v. Committee, filed July 1979, U.S.D.C. for the Board of Governors, filed May 1978, U.S.D.C. District of Columbia. for the District of Columbia. Connecticut Bankers Association, etal., v. Board Security Bancorp and Security National Bank v. of Governors, filed May 1979, U.S.C.A. for Board of Governors, filed March 1978, the District of Columbia. U.S.C.A. for the Ninth Circuit. Ella Jackson, et al., v. Board of Governors, filed Vickars-Henry Corp. v. Board of Governors, filed May 1979, U.S.C.A. for the Fifth Circuit. December 1977, U.S.C.A. for the Ninth Cir- Memphis Trust Company v. Board of Governors, cuit. filed May 1979, U.S.C.A. for the Sixth Circuit. Investment Company Institute v. Board of Gover- Independent Insurance Agents of America, et al., nors, filed September 1977, U.S.D.C. for the v. Board of Governors, filed May 1979, District of Columbia. U.S.C.A. for the District of Columbia. Roberts Farms, Inc. v. Comptroller of the Cur- Independent Insurance Agents of America, et al., rency, et al., filed November 1975, U.S.D.C. v. Board of Governors, filed April 1979, for the Southern District of California. U.S.C.A. for the District of Columbia. David R. Merrill, et al., v. Federal Open Market Independent Insurance Agents of America, et al., Committee of the Federal Reserve System, filed v. Board of Governors, filed March 1979, May 1975, U.S.D.C. for the District of Colum- U.S.C.A. for the District of Columbia. bia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS Domestic Financial Statistics WEEKLY REPORTING COMMERCIAL BANKS A3 Monetary aggregates and interest rates Assets and liabilities A4 Factors affecting 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 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

A 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 official institutions liabilities 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 ENTERPRISES IN THE UNITED STATES A46 Nonfinancial business activity— 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 Special Tables A52 Gross national product and income A53 Personal income and saving A69 Survey of Time and Savings Deposits at Commercial Banks, July 25, 1979 A73 Guide to Tabular Presentation and Statistical Releases Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1978 1979 1979 IItteemm Q4 Q1 Q2 Q3 May June July Aug. Sept. Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)13 Member bank reserves 1 Total '2.4 r —3.0 r —5.0 6.3 r —4.7 r— 1.5 '12.7 7.2 11.5 2 Required '2.2 r—2.9 -4.8 6.0 ' — 3.7 '-3.9 '13.1 7.0 12.5 3 Nonborrowed r4.7 r — 3.4 -8.8 8.2 ' — 30.3 '9.1 '20.7 10.0 4.2 4 Monetary base1 '8.5 '5.6 4.0 9.8 '3.2 '6.2 '11.2 12.1 13.7 Concepts of money 2 5 M-l 4.1 -2.1 7.6 9.7 .7 1144..88 '10.4 '6.8 11.2 6 M-1 + 2.7 -5.0 3.7 8.2 -2.1 12.3 10.2 6.5 7.2 7 M-2 7.6 1.8 8.6 12.0 5.4 14.2 12.9 11.0 12.2 8 M-3 9.3 4.7 7.9 10.5 4.9 11.9 11.4 '10.0 10.9 Time and savings deposits Commercial banks 9 Total 12.3 8.4 1.2 9.0 -1.4 .8 12.2 14.6 15.1 .2 -9.6 -3.1 5.5 -7.2 7.8 9.4 6.6 .0 11 Other time 18.2 15.6 18.5 19.2 19.9 17.6 18.1 19.4 21.2 12 Thrift institutions 3 11.6 8.8 6.8 8.4 4.1 8.8 9.3 '8.5 8.9 13 Total loans and investments at commercial banks4 12.7 r13.3 11.9 15.8 8.8 '12.6 '13.4 11.6 21.7 1978 1979 1979 Q4 Ql Q2 Q3 June July Aug. Sept. Oct. Interest rates (levels, percent per annum) Short-term rates 14 Federal funds 5 9.58 10.07 10.18 10.94 10.29 10.47 10.94 11.43 13.77 15 Federal Reserve discount6 9.09 9.50 9.50 10.21 9.50 9.69 10.24 10.70 11.77 16 Treasury bills (3-month market yield) 7 8.57 9.38 9.38 9.67 9.06 9.24 9.52 10.26 11.70 17 Commercial paper (90- to 119-day)7.8 9.83 10.04 9.85 10.64 9.76 9.87 10.43 11.63 13.23 Long-term rates Bonds 18 U.S. government9 8.78 9.03 9.08 9.03 8.91 8.92 8.97 9.21 9.99 19 State and local government10 6.28 6.37 6.22 6.28 6.13 6.13 6.20 6.52 7.08 20 Aaa utility (new issue)11 9.23 9.58 9.66 9.64 9.50 9.58 9.48 9.93 10.97 21 Conventional mortgages12 10.12 10.33 10.35 11.13 10.90 10.95 11.10 11.35 n.a. 1. Includes total reserves (member bank reserve balances in the current 6. Rate for the Federal Reserve Bank of New York. week plus vault cash held two weeks earlier); currency outside the U.S. 7. Quoted on a bank-discount basis. Treasury, Federal Reserve Banks and the vaults of commercial banks; 8. Beginning Nov. 1977, unweighted average of offering rates quoted and vault cash of nonmember banks. by at least five dealers. Previously, most representative rate quoted by 2. M-l equals currency plus private demand deposits adjusted. these dealers. M-1 + equals M-l plus savings deposits at commercial banks, NOW 9. Market yields adjusted to a 20-year maturity by the U.S. Treasury. accounts at banks and thrift institutions, credit union share draft ac- 10. Bond Buyer series for 20 issues of mixed quality. counts, and demand deposits at mutual savings banks. 11. Weighted averages of new publicly offered bonds rated Aaa, Aa, M-2 equals M-l plus bank time and savings deposits other than large and A by Moody's Investors Service and adjusted to an Aaa basis. negotiable certificates of deposit (CDs). Federal Reserve compilations. M-3 equals M-2 plus deposits at mutual savings banks, savings and 12. Average rates on new commitments for conventional first mortgages loan associations, and credit union shares. on new homes in primary markets, unweighted and rounded to nearest 3. Savings and loan associations, mutual savings banks, and credit 5 basis points, from Dept. of Housing and Urban Development. unions. 13. Unless otherwise noted, rates of change are calculated from average 4. Quarterly changes calculated from figures shown in table 1.23. amounts outstanding in preceding month or quarter. Growth rates for 5. Seven-day averages of daily effective rates (average of the rates on member bank reserves are adjusted for discontinuities in series that result a given date weighted by the volume of transactions at those rates). from changes in Regulations D and M. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • November 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 Aug. Sept.* Oct.* Sept. 19 Sept. 26 Oct. 3* Oct. 10* Oct. 17* Oct. 24* Oct. 31* SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 113,441 133,598 134,049 133,736 134,113 135,461 113,011 135,391 135,305 135,930 2 U.S. government securities1 111,639 112,967 113,775 112,599 114,746 114,448 112,862 113,221 113,931 115,440 111,044 112,421 113,282 112,388 113,478 113,610 112,797 113,221 113,373 114,171 4 Held under repurchase agree- 595 546 493 211 1,268 838 65 558 1,269 5 Federal agency securities 8,519 8,524 8,414 8,373 8,626 9,068 8,264 8,221 8,531 8,501 6 Bought outright 88,,224433 8,229 8,222 8,224 8,224 8,224 8,223 8,221 8,221 8,221 7 Held under repurchase agree- 276 295 192 149 402 844 41 310 280 388 316 173 102 382 846 45 125 336 9 Loans 1,097 1,345 2,022 1,762 1,159 1,119 938 1,530 2,960 3,056 10 Float 4,884 5,906 6,116 6,435 5,090 5,479 6,621 7,850 5,309 4,129 11 Other Federal Reserve assets 4,915 4,540 4,423 4,464 4,110 4,502 4,280 4,569 4,449 4,467 12 Gold stock 1111,,226666 1111,,223399 1111,,220055 11,228 11,228 11,228 11,223 1111,,119966 11,196 11,195 13 Special drawing rights certificate 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 14 Treasury currency outstanding 12,533 12,627 12,741 12,631 12,645 12,670 12,709 12,731 12,753 12,786 ABSORBING RESERVE FUNDS 15 Currency in circulation 118,248 119,092 119,809 119,236 118,642 118,880 119,875 120,257 119,812 119,528 16 Treasury cash holdings 265 288 346 289 307 322 334 339 356 367 Deposits, other than member bank reserves, with Federal Reserve Banks 17 Treasury 3,021 4,073 3,090 3,469 4,553 4,925 2,883 2,987 3,505 3,073 18 Foreign 294 319 310 321 262 352 281 321 292 320 19 Other 634 716 645 876 622 800 610 636 580 648 20 Other Federal Reserve liabilities and capital 4,572 4,697 4,870 4,612 4,848 4,860 4,669 4,840 4,908 5,188 21 Member bank reserves with Federal 30,006 30,079 31,599 30,592 30,553 31,020 30,093 31,737 31,599 32,587 End-of-month figures Wednesday figures 1979 1979 Aug. Sept.* O ct.* Sept. 19 Sept. 26 Oct. 3P Oct. 10* Oct. 17 P Oct. 24P Oct. 31 P SUPPLYING RESERVE FUNDS 22 Reserve bank credit outstanding 132,299 135,389 135,005 129,619 136,436 130,409 134,907 139,185 135,139 135,005 23 U.S. government securities1 113,027 115,458 114,580 109,812 115,005 109,073 113,240 113,744 113,084 114,580 24 Bought outright 112,635 114,596 114,455 109,812 113,852 109,073 113,240 113,744 113,084 114,455 25 Held under repurchase agree- 392 886622 112255 11,,115533 125 26 Federal agency securities 8,395 9,323 8,278 8,224 8,532 8,224 8,221 8,221 8,221 8,278 27 Bought outright 8,242 8,224 8,221 8,224 8,224 8,224 8,221 8,221 8,221 8,221 28 Held under repurchase agree- 153 1,099 57 308 57 29 Acceptances 475 1,053 317 684 317 30 Loans 1,572 1,157 2,672 963 1,820 1,089 515 4,257 4,106 2,672 31 Float 4,209 4,083 4,685 6,014 6,203 7,754 8,422 8,089 5,268 4,685 32 Other Federal Reserve assets 4,621 5,349 4,473 4,606 4,192 4,269 4,509 4,874 4,460 4,473 33 Gold stock 1111,,225599 1111,,222288 1111,,119944 1111,,222288 1111,,222288 1111,,222288 1111,,221122 1111,,119966 1111,,119966 11,194 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 12,724 12,645 12,793 12,634 12,645 12,704 12,716 12,753 12,753 12,793 ABSORBING RESERVE FUNDS 36 Currency in circulation 118,914 118,550 120,004 119,164 118,954 119,563 120,615 120,388 119,873 120,004 37 Treasury cash holdings 268 324 369 306 306 324 337 349 359 369 Deposits, other than member bank reserves, with Federal Reserve Banks 38 Treasury 3,542 6,489 2,209 2,786 5,483 3,256 2,625 3,423 3,218 2,209 39 Foreign 325 348 352 259 275 298 280 290 301 352 40 Other 663 780 286 686 571 613 686 466 582 286 41 Other Federal Reserve liabilities and capital 44,,887766 5,086 5,011 44,,559977 4,855 4,254 4,562 4,907 44,,991177 55,,001111 42 Member bank reserves with Federal Reserve Banks 29,493 29,485 32,561 27,482 31,665 27,833 31,531 35,111 31,638 32,561 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. Feb. Mar. Apr. May June July Aug. Sept.* Oct.2' All member banks Reserves 1 At Federal Reserve Banks 31,158 30,485 30,399 30,675 30,208 29,822 30,191 30,006 30,079 31,599 2 Currency and coin 10,330 10,074 9,776 9,737 10,044 10,154 10,552 10,523 10,727 10,681 3 Total held i 41,572 40,703 40,316 40,546 40,382 40,105 40,900 40,687 40,958 42,423 4 Required 41,447 40,494 40,059 40,548 40,095 39,884 40,710 40,494 40,860 41,998 5 Excess 1 125 209 257 -2 287 221 190 193 98 425 Borrowings at Reserve Banks 2 6 Total 874 973 999999 889977 11,,777777 11,,339966 11,,117799 11,,009977 1,345 2,022 7 Seasonal 134 114 121 134 173 188 168 177 178 161 Large banks in New York City 8 Reserves held 7,120 6,995 6,892 66,,880044 66,,665588 66,,334466 6,605 6,408 66,,335599 6,655 9 Required 7,243 6,976 6,845 6,837 6,544 6,415 6,586 6,427 6,378 6,832 10 Excess -123 19 47 -33 114 -69 19 -19 -19 -177 99 0 45 61 150 78 97 79 87 183 Large banks in Chicago 12 Reserves held 1,907 1,824 11,,882222 11,,880011 11,,773300 11,,772266 11,,770099 1,694 1,697 1,790 1,900 11,,882233 1,809 1,824 1,712 1,697 1,713 1,706 1,760 1,857 7 11 13 -23 18 29 -4 -12 -63 -67 10 10 26 18 60 64 45 6 80 136 Other large banks 16 Reserves held 16,446 16,055 15,844 1155,,994488 1155,,992266 1155,,998899 16,374 16,370 1155,,990000 1166,,551199 16,342 16,018 15,802 16,014 15,893 15,877 16,339 16,321 16,487 16,744 104 37 42 -66 33 112 35 49 -587 -225 19 Borrowings2 276 275 215 271 721 586 517 484 603 856 All other banks 20 Reserves held 16,099 15,829 15,758 15,993 16,068 16,044 16,212 16,215 16,302 16,495 21 Required 15,962 15,677 15,603 15,873 15,946 15,895 16,072 16,040 16,235 16,413 22 Excess 137 152 155 120 122 149 140 175 67 82 489 688 713 547 846 668 520 528 575 847 Edge corporations 24 Reserves held n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 9900 25 Required n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 72 26 Excess n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 18 Weekly averages of daily figures for weeks ending 1979 Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 Oct. 3f Oct. 10f Oct. 17^ Oct. 24» Oct. 3If All member banks Reserves 27 At Federal Reserve Banks 30,467 30,141 28,902 30,592 30,553 31,020 30,093 31,737 31,599 32,587 28 Currency and coin 10,484 10,596 11,134 10,169 10,836 10,959 11,078 10,692 9,942 10,891 29 Total held 1 41,108 40,894 40,193 40,918 41,545 42,124 41,313 42,571 41,684 43,621 30 Required 40,738 40,489 40,095 40,721 41,519 41,767 40,719 42,570 41,533 43,264 31 Excess1 370 405 98 197 26 357 594 1 151 357 Borrowings at Reserve Banks2 32 Total 1,117 1,340 1,230 1,762 1,159 1,119 938 1,530 2,960 3,056 186 172 153 163 180 177 139 151 164 187 Large banks in New York City 6,472 6,603 6,236 6,168 6,388 6,616 6,628 7,035 6,410 6,753 6,419 6,470 6,292 6,155 6,395 6,774 6,496 7,264 6,539 7,055 53 133 -56 13 -7 -158 132 -229 -129 -302 50 214 139 0 29 99 0 348 308 96 Large banks in Chicago 1,693 1,734 1,678 1,754 1,809 1,602 1,522 1,926 11,,779955 1,860 1,687 1,733 1,679 1,764 1,803 1,855 1,773 1,967 1,830 1,857 6 1 — 1 -10 6 -253 -251 -41 -35 3 29 0 0 343 0 1 64 2 226 309 Other large banks 16,537 16,280 16,160 16,731 16,669 16,583 16,117 16,429 16,559 16,447 16,438 16,231 16,188 16,624 16,743 16,682 16,349 17,022 16,583 17,047 99 49 -28 107 -74 -99 -232 -593 -24 -600 427 505 512 859 579 440 375 582 1,265 1,391 All other banks 16,406 16,277 16,119 16,265 16,679 16,785 16,396 16,291 16,574 16,508 16,194 16,055 15,936 16,178 16,578 16,456 16,101 16,317 16,581 16,633 212 222 183 87 101 329 295 -26 -7 -125 611 621 579 560 551 579 499 598 1,161 11,,226600 Edge corporations n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 396 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 318 52 Excess n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 78 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, Digitized for FnRoAnmSeEmRb er bank merges into an existing member bank, or when a 2. Based on closing figures. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • November 1979 1.13 FEDERAL FUNDS TRANSACTIONS Money Market Banks Millions of dollars, except as noted 1979, week ending Wednesday TTyyppee Sept. 5 Sept. 12 Sept. 19 Sept. 26 Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31 Total, 46 banks Basic reserve position 226 -57 6622 4 56 361 67 58 194 LESS: 2 Borrowings at Federal Reserve 296 300 692 269 252 221 489 834 869 3 Net interbank federal funds 20,563 25,011 21,822 19,838 19,007 23,129 2233,,556677 2211,,771122 2200,,333322 EQUALS: Net surplus, or deficit (—) 4 Amount --2200,,663344 --2255,,336688 -22,453 -20,102 -19,204 --2222,,998888 --2233,,998899 --2222,,448888 --2211,,000088 5 Percent of average required 121.0 150.8 131.8 115.4 108.4 133.5 128.7 129.1 113.8 Interbank federal funds transactions Gross transactions 30,397 33,098 30,764 28,475 28,904 32,356 31,379 28,320 27,700 7 Sales 9,833 8,087 8,941 8,637 9,896 9,227 7,812 6,608 7,367 7,573 6,813 6,280 6,338 6,767 7,198 6,190 55,,447788 5,737 Net transactions 9 Purchases of net buying banks 22,823 26,286 24,484 22,136 22,136 25,159 25,189 22,841 21,963 10 Sales of net selling banks 2,260 1,274 2,661 2,300 3,129 2,030 1,621 1,130 1,630 Related transactions with U.S. government securities dealers 3,519 4,780 3,581 2,865 2,973 3,551 2,992 2,575 1,800 12 Borrowings from dealers4 1,970 2,069 2,418 1,917 2,103 1,520 1,590 1,571 1,285 1,549 2,712 1,163 948 870 2,030 1,402 1,004 514 8 banks in New York City Basic reserve position 189 -6 16 6 15 228 6 33 202 LESS: 15 Borrowings at Federal Reserve 114 125 0 29 56 0 342 168 58 16 Net interbank federal funds 5,831 7,094 5,791 5,602 5,439 7,175 5,880 44,,888833 55,,665566 EQUALS: Net surplus, or deficit (—) 17 Amount -5,757 -7,225 -5,774 -5,625 -5,480 --66,,994477 -6,216 --55,,001199 --55,,551122 18 Percent of average required 98.4 126.8 104.2 97.1 89.8 119.0 94.7 82.5 86.4 Interbank federal funds transactions Gross transactions 7,512 8,316 7,745 6,700 6,930 8,331 7,256 6,402 7,300 20 Sales 1,681 1,222 1,955 1,098 1,491 1,155 1,375 1,519 1,645 1,681 1,222 1,208 1,082 976 1,155 1,375 11,,551199 1,459 Net transactions 22 Purchases of net buying banks 5,831 7,094 6,538 5,617 5,955 7,175 5,881 4,884 5,841 23 Sales of net selling banks 0 0 747 16 516 0 0 0 186 Related transactions with U.S. government securities dealers 2,258 3,401 2,408 1,842 1,854 2,340 2,139 1,838 1,107 855 821 1,339 811 748 714 780 745 595 1,403 2,580 1,068 1,031 1,105 1,625 1,359 1,093 512 38 banks outside New York City Basic reserve position 37 --5511 4455 -2 4411 113344 61 25 -8 LESS: 28 Borrowings at Federal Reserve 182 175 692 240 196 221 147 666 811 29 Net interbank federal funds 14,732 17,197 16,032 14,236 13,569 15,954 17,686 16,829 1144,,667777 EQUALS: Net surplus, or deficit (—) -14,877 -18,143 -16,678 -14,478 -13,724 -16,041 -17,772 -17,469 1155,,449966 31 Percent of average required 132.8 162.6 145.1 124.6 118.2 140.9 147.1 151.5 128.4 Interbank federal funds transactions Gross transactions 22,885 24,782 23,018 21,775 21,973 24,026 24,123 21,917 20,399 8,152 6,865 6,978 7,540 8,405 8,072 6,437 5,089 5,723 5,892 5,591 5,072 5,256 5,792 6,042 4,815 3,959 4,278 Net transactions 35 Purchases of net buying banks 16,993 19,191 17,946 16,519 16,182 17,983 19,308 17,958 16,122 36 Sales of net selling banks 2,260 1,274 1,914 2,284 2,613 2,030 1,621 1,130 1,444 Related transactions with U.S. government securities dealers 1,261 1,380 1,173 1,023 1,120 11,,221111 853 737 693 38 Borrowings from dealers4 1,115 1,248 1,078 1,106 1,355 806 809 827 691 146 132 95 -83 -235 405 43 -90 2 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Funds A7 1.13 Continued 1979, week ending Wednesday Type Sept. 5 Sept. 12 Sept. 19 Sept. 26 Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31 5 banks in City of Chicago 40 E B x a c si e c s s r e r s e e s r e v r e v e p s o 1 sition 3 -1 -14 -1 0 29 3 19 4 LESS: 41 Borro B w an in k g s s at Federal Reserve 0 0 343 0 0 64 0 213 300 42 Net i t n ra te n r s b a a c n ti k o n f s e deral funds 8,228 8,120 6,922 7,104 7,302 7,276 8,135 8,072 7,266 43 A EQ m U o A u L n S t : Net surplus, or deficit (—) -8,225 -8,122 -7,278 -7,105 -7,302 -7,310 -8,132 -8,266 -7,563 44 Perce r n es t e o rv f e a s v erage required 509.0 520.2 442.5 421.7 421.3 442.5 441.2 484.0 433.9 Interbank federal funds transactions Gross transactions 45 Purchases 9,530 9,407 8,403 8,406 8,614 8,810 9,496 8,963 8,380 46 Sales 1,302 1,287 1,481 1,302 1,313 1,534 1,361 891 1,114 47 Two-way transactions2 1,302 1,287 1,481 1,302 1,313 1,531 1,361 891 1,114 Net transactions 48 Purchases of net buying banks... 8,228 8,120 6,922 7,104 7,302 7,280 8,135 8,072 7,266 49 Sales of net selling banks 0 0 0 0 0 4 0 0 0 Related transactions with U.S. government securities dealers 50 Loans to dealers 3 247 329 198 190 144 244 170 113 59 51 Borrowings from dealers 4 15 52 12 170 52 4 0 68 160 52 Net loans 232 277 187 20 92 240 170 45 -101 33 other banks Basic reserve position 53 Excess reserves1 34 -50 59 -1 41 104 58 6 -12 LESS: 54 Borrowings at Federal Reserve Banks 182 175 349 240 196 157 147 453 511 55 Net interbank federal funds transactions 6,504 9,797 9,110 7,132 6,267 8,678 9,552 8,757 7,410 EQUALS: Net surplus, or deficit (—) 56 Amount -6,652 -10,022 -9,400 -7,373 -6,422 -8,731 -9,641 -9,204 -7,933 57 Percent of average required reserves 69.4 104.4 95.5 74.2 65.0 89.7 94.2 93.7 76.8 Interbank federal funds transactions Gross transactions 58 Purchases 13,354 15,376 14,615 13,370 13,359 15,215 14,627 12,955 12,019 59 Sales 6,850 5,579 5,506 6,238 7,092 6,537 5,076 4,198 4,609 60 Two-way transactions2 4,590 4,305 3,591 3,955 4,479 4,512 3,454 3,069 3,164 Net transactions 61 Purchases of net buying banks... 8,765 11,071 11,024 9,415 8,880 10,704 11,173 9,886 8,855 62 Sales of net selling banks 2,260 1,274 1,914 2,284 2,613 2,026 1,621 1,130 1,444 Related transactions with U.S. government securities dealers 63 Loans to dealers 3 1,014 1,051 975 834 976 967 683 624 634 64 Borrowings from dealers4 1,100 1,196 1,067 936 1,303 802 809 759 531 65 Net loans -85 -145 -92 -103 -328 165 -127 -135 103 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 • November 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 10/31/79 date rate 10/31/79 date rate 10/31/79 date rate 10/31/79 date rate Boston 12 10'10/79 11 12% 10/10/79 11% 13 10/10/79 12 15 10/10/79 14 New York 12 10/8/79 11 12% 10/8/79 11% 13 10/8/79 12 15 10/8/79 14 Philadelphia 12 10/8/79 11 12% 10/8/79 11% 13 10/8/79 12 15 10/8/79 14 Cleveland 12 10/8/79 11 12% 10/8/79 11% 13 10/8/79 12 15 10/8/79 14 Richmond 12 10/8/79 11 12% 10/8/79 11% 13 10/8/79 12 15 10/8/79 14 Atlanta 12 10/9/79 11 12% 10/9/79 11% 13 10/9/79 12 15 10/9/79 14 Chicago 12 10/9/79 11 12% 10/9/79 11% 13 10/9/79 12 15 10/9/79 14 St. Louis 12 10/8/79 11 12% 10/8/79 11% 13 10/8/79 12 15 10/8/79 14 Minneapolis 12 10/8/79 11 12% 10/8/79 11% 13 10/8/79 12 15 10/8/79 14 Kansas City 12 10/9/79 11 12% 10/9/79 11% 13 10/9/79 12 15 10/9/79 14 Dallas 12 10/9/79 11 12% 10/9/79 11% 13 10/9/79 12 15 10/9/79 14 San Francisco.... 12 10/8/79 11 12% 10/8/79 11% 13 10/8/79 12 15 10/8/79 14 Range of rates in recent years5 Range F.R. Range F.R. Range F.R. (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. 5% 5% 1973—July 2. 7 7 1977—Aug. 30 514-534 514 Aug. 14, 7-7% 7% 31 514-534 534 5V4-51A 5% 23, 7% 7% Sept. 2 534 534 5V4 51/4 Oct. 26 6 6 5-5% 5% 1974—Apr. 25, 7%-8 8 5-5% 5 30. 8 8 1978—Jan. 9 6-6% 6% 5 5 Dec. 9, 734-8 734 20 6% 6% 4^-5 5 16. 734 734 May 11 6%- 7 7 4% 4 - 5 y 4 4 5 3 4 1975—Jan. 6, 71/4-73/4 ?8 July 1 3 2 7 7 -714 7 7 1 4 5 10, 7%-73/4 10 714 714 434-5 5 24, 7% 714 Aug. 21 734 734 434 434 Feb. 5, 634-7% 634 Sept. 22 8 8 4 4 3 % / 4 Mar. 10 7 , , 61/ 6 4 3 -6 4 3 4 6 61 3 / 4 4 Oct. 2 16 0 8 8% -8 % 8 8 % % 4% 4% 14, 614 614 Nov. 1 8%-9% 9% 53 5 5 5 6 , 6 4 - - 3 - 5 6 6 / % % 4 5 5 5 5 6 5 6 6 % % % % % 1976— N M Ja o a n v y . . 2 2 2 2 1 1 2 6 6 3 3 9 , , , , , , 5 5 1 % 6 6 5 5 4 1 % - - - 6 6 5 4 % % 5 6 6 5 5 1 % % 4 1979— A S O Ju e u c l p t y g . t . . 2 1 1 2 2 1 7 0 9 0 8 3 1 0 1 1 0 0 1 1 % - 9 0 1 1 1 1 1 % - 1 % 2 0 0 - 1 n % 2 1 1 1 1 1 1 9 0 0 1 1 1 2 2 % % % 0 6% 6% In effect Oct. 31, 1979 12 12 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 October 31, 1979 TTyyppee ooff ddeeppoossiitt,, aanndd ddeeppoossiitt iinntteerrvvaall iinn mmiilllliioonnss ooff ddoollllaarrss Percent Effective date Percent Effective date Net demand2 0-2 7 12/30/76 m 2/13/75 2-10 12/30/76 10 2/13/75 10-100 11% 12/30/76 12 2/13/75 100-400 12% 12/30/76 13 2/13/75 Over 400 16% 12/30/76 16% 2/13/75 Time and savings2' 3>4 Savings 3 3/16/67 3/2/67 Times 0-5, by maturity 30-179 days 3 3/16/67 m 3/2/67 4 1 8 y 0 e a d r a s y s o r t o m 4 o r y e e ars 2 1 y 2 10 1 /3 / 0 8 / / 7 7 5 6 3 3 3 3 / / 1 1 6 6 / / 6 6 7 7 Over 5, by maturity 30-179 days 6 12/12/74 5 10/1/70 180 days to 4 years 21/2 1/8/76 3 12/12/74 4 years or more 1 10/30/75 3 12/12/74 Legal limits Net demand Reserve city banks Other banks Time Borrowings from foreign banks 1. For changes in reserve requirements beginning 1963, see Board's (d) Effective with the reserve computation period beginning Nov. 16, Annual Statistical Digest, 1971-1975 and for prior changes, see Board's 1978, domestic deposits of Edge corporations are subject to the same Annual Report for 1976, table 13. reserve requirements as deposits of member banks. 2. (a) Requirement schedules are graduated, and each deposit interval 3. Negotiable order of withdrawal (NOW) accounts and time deposits applies to that part of the deposits of each bank. Demand deposits such as Christmas and vacation club accounts are subject to the same subject to reserve requirements are gross demand deposits minus cash requirements as savings deposits. items in process of collection and demand balances due from domestic 4. The average reserve requirement on savings and other time deposits banks. must be at least 3 percent, the minimum specified by law. (b) The Federal Reserve Act specifies different ranges of requirements 5. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 for reserve city banks and for other banks. Reserve cities are designated percent was imposed on large time deposits of $100,000 or more, obligaunder a criterion adopted effective Nov. 9, 1972, by which a bank having tions of affiliates, and ineligible acceptances. net demand deposits of more than $400 million is considered to have the Effective with the reserve maintenance period beginning Oct. 25, 1979, character of business of a reserve city bank. The presence of the head a marginal reserve requirement of 8 percent was added to managed office of such a bank constitutes designation of that place as a reserve liabilities in excess of a base amount. Managed liabilities are defined as city. Cities in which there are Federal Reserve Banks or branches are also large time deposits, Eurodollar borrowings, repurchase agreements reserve cities. Any banks having net demand deposits of $400 million or against U.S. government and federal agency securities, federal funds less are considered to have the character of business of banks outside of borrowings from nonmember institutions, and certain other obligations. reserve cities and are permitted to maintain reserves at ratios set for banks In general, the base for the marginal reserve requirement is $100 million or not in reserve cities. For details, see the Board's Regulation D. the average amount of the managed liabilities held by a member bank, (c) Effective Aug. 24, 1978, the Regulation M reserve requirements Edge corporation, or family of U.S. branches and agencies of a foreign on net balances due from domestic banks to their foreign branches and bank for the two statement weeks ending Sept. 26, 1979. on deposits that foreign branches lend to U.S. residents were reduced to zero from 4 percent and 1 percent, respectively. The Regulation D reserve NOTE. Required reserves must be held in the form of deposits with requirement on borrowings from unrelated banks abroad was also reduced Federal Reserve Banks or vault cash. to zero from 4 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 DomesticN onfinancial Statistics • November 1979 .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 Nov. 30,1979 Previous maximum In effect Nov. 30,1979 Previous maximum Percent Effective Percent Effective Percent Effective Percent Effective date date date date 1 Savings 5% 7/1/79 5 7/1/73 5% 7/1/79 5% ( 7 ) 2 Negotiable order of withdrawal (®) (®) accounts1 1/1/74 5 1/1/74 Time accounts2 Fixed ceiling rates by maturity (•) 1 4 9 6 7 3 8 5 0 9 4 2 2 6 3 8 1 ^ 0 0 t t y t t 2 - o o o o e d 8 a t a 9 2 6 8 2 o r y ^ s y d y y s 4 e e e a o t y a a a y y r o e r r r s e a s m s s a 1 r 4 4 3 r s o y s e r 3 3 a e 4 r 5 m 1 5 6 IV 1 % V y / A 2 2 4 12 1 9 7 6 7 7 / 1 2 / / / / / / 1 1 1 1 1 3 1 / / / / / / / 7 7 7 7 7 7 7 9 8 3 3 3 4 3 ( 5 m 5 s ( 1 y 8) 0 4 ) 1 1 1 1 ( 7 / / / 1 9 2 2 2 ) / / 1 1 1 1 1 / / / / / 7 7 7 7 7 3 0 0 3 0 m m 8 1 1 2 ( ( ( 6 1 / 7 7 7 2 / ) / ) ) 1 1 3 / / / 7 7 7 8 3 4 ( 7 6 6 5 5 ( ( ® 1 8 % % % 0 ) ) ) 1 1 1 1 1 1 / / / / 2 2 2 2 /1 1 1 1 1 / / / / / 7 7 7 7 7 3 0 0 0 0 11 Issued to governmental units (all maturities) m 12/23/74 6/1/78 734 12/23/74 12 Individual retirement accounts and 6/1/78 Keogh (H.R. 10) plans (3 years or more) 5 m 7/6/77 6/1/78 7% 7/6/77 6/1/78 Special variable ceiling rates by maturity 1 1 4 3 4 6 y m d e e o a p n r o s t s h i o t s s r ) ( ® m m o or n e e y market time ( ( n 1 ) 2 ) <(1n)2 ) ( ( n 1 ) 2 ) (( n 1)2 ) O (12 1 ) ) < (1 n 2 ) ) O (12 1 ) ) <( n 1)2 ) 1. For authorized states only. Federally insured commercial banks, 11. Commercial banks, savings and loan associations, and mutual savings and loan associations, cooperative banks, and mutual savings savings banks were authorized to offer money market time deposits effecbanks in Massachusetts and New Hampshire were first permitted to offer tive June 1,1978. The ceiling rate for commercial banks is the discount rate negotiable order of withdrawal (NOW) accounts on Jan. 1, 1974. on most recently issued 6-month U.S. Treasury bills. Until Mar. 15, Authorization to issue NOW accounts was extended to similar institutions 1979, the ceiling rate for savings and loan associations and mutual savings throughout New England on Feb. 27, 1976, and in New York State on banks was V4 percentage point higher than the rate for commercial banks. Nov. 10, 1978. Beginning Mar. 15, 1979, the % percentage point interest differential 2. For exceptions with respect to certain foreign time deposits see the is removed when the 6-month Treasury bill rate is 9 percent or more. FEDERAL RESERVE BULLETIN for October 1962 (p. 1279), August 1965 (p. The full differential is in effect when the 6-month bill rate is 8% percent 1094), and February 1968 (p. 167). or less. Thrift institutions may pay a maximum 9 percent when the 6-month 3. No minimum denomination. Until July 1, 1979, a minimum of bill rate is between 8% and 9 percent. Also effective March 15, 1979, $1,000 was required for savings and loan associations, except in areas interest compounding was prohibited on money market time depositwhere mutual savings banks permitted lower minimum denominations. at all offering institutions. For both commercial banks and thrift institu- This restriction was removed for deposits maturing in less than 1 year, tions, the maximum allowable rates in October were as follows: Oct. 4, effective Nov. 1, 1973. 10.327; Oct. 11, 10.662; Oct. 18, 11.716; Oct. 25, 12.651. 4. No minimum denomination. Until July 1, 1979, minimum denomina- 12. Effective July 1, 1979, commercial banks, savings and loan association was $1,000 except for deposits representing funds contributed to an tions, and mutual savings banks are authorized to offer variable ceiling Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan es- accounts with no required minimum denomination and with maturities of tablished pursuant to the Internal Revenue Code. The $1,000 minimum 4 years or more. The maximum rate for commercial banks is 1 1/A percentrequirement was removed for such accounts in December 1975 and No- age points below the yield on 4-year U.S. Treasury securities; the ceiling vember 1976, respectively. rate for thrift institutions is lA percentage point higher than that for com- 5. Accounts maturing in less than 3 years subject to regular ceilings. mercial banks. For deposits issued in October, the ceiling was 8.25 percent 6. Must have a maturity of exactly 26 weeks and a minimum denomina- at commercial banks and 8.50 percent at thrift institutions. In November, tion of $10,000, and must be nonnegotiable. the ceiling at commercial banks is 10.3 percent, and the ceiling at thrift 7. July 1, 1973, for mutual savings bank; July 6, 1973 for savings and institutions is 10.55 percent. loan associations. 8. No separate account category. NOTE. Maximum rates that can be paid by federally insured commer- 9. Multiple maturity: July 20, 1966; single maturity: September 26, cial banks, mutual savings banks, and savings and loan associations are 1966. established by the Board of Governors of the Federal Reserve System, 10. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for the Board of Directors of the Federal Deposit Insurance Corporation, certificates maturing in 4 years or more with minimum denominations and the Federal Home Loan Bank Board under the provisions of 12 of $1,000; however, the amount of such certificates that an institution CFR 217, 329, and 526, respectively. The maximum rates on time decould issue was limited to 5 percent of its total time and savings deposits. posits in denominations of $100,000 or more with maturities of 30-89 Sales in excess of that amount, as well as certificates of less than $1,000, days were suspended in June 1970; such deposits maturing in 90 days or were limited to the 6Vi percent ceiling on time deposits maturing in 2l/i more were suspended in May 1973. For information regarding previous years or more. interest rate ceilings on all types of accounts, see earlier issues of the Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing FEDERAL RESERVE BULLETIN, the Federal Home Loan Bank Board Journal, in 4 years or more with minimum denominations of $1,000. There is no and the Annual Report of the Federal Deposit Insurance Corporation. limitation on the amount of these certificates that banks can issue. 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 1976 1977 1978 Type of transaction Mar. Apr. May June July Aug. Sept. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched salepurchase transactions) Treasury bills 1 Gross purchases 14,343 13,738 16,628 2,012 22,361 0 518 2,252 2,351 2 Gross sales 8,462 7,241 13,725 475 100 251 623 0 380 3 Redemptions 2 5,017 2,136 2,033 400 2 1,240 200 0 0 0 Others within 1 year1 4 5 G G r r o o s s s s s p a u l r e c s h ases 472 0 3,017 0 1,184 0 2,600 0 0 0 0 0 42 0 218 0 5 0 7 6 7 R Ex e c d h e a m n p g t e i , o n or s maturity shift 792 0 4 2 . . 4 5 9 0 9 0 -5,170 0 72 0 4 2 3, 4 2 3 4 9 0 4,660 0 1,152 0 3 0 3 ,526 0 1 to 5 years 8 Gross purchases 2 3,202 2,833 4,188 0 2 640 0 0 237 699 9 Gross sales 177 0 0 0 0 0 0 0 0 10 Exchange, or maturity shift -2,588 -6,649 -178 -724 -439 -5,209 -1,152 -33 -1,591 5 to 10 years 1 1 1 1 2 3 E G G x r r c o o h s s s a s n s p g a u e l r e , c s o h r a s m es a turity shift 1 1 , ,0 5 4 7 8 2 0 7 5 5 8 8 0 4 2 1 , , 8 5 0 2 3 6 0 35 0 0 0 96 0 0 -2 1 4 4 0 0 0 Over 10 years 1 1 1 4 5 6 G E G x r r c o o h s s s s a n p s g a u e l r e , c s o h r a s m es a turity shift 2 6 2 4 5 2 0 ,5 5 6 5 5 0 3 2 1 , , 5 0 4 6 5 3 0 20 0 0 0 14 0 0 2 30 8 0 5 1 All maturities1 17 Gross purchases 219,707 20,898 24,591 ,612 2 3,000 0 561 2,945 3,327 1 1 9 8 R G e r d o e ss m s p a t l i e o s n s 25 8 , , 0 6 1 3 7 9 4 7 , , 6 24 3 1 6 1 2 3 , , 0 7 3 2 3 5 4 47 0 5 0 2 4,4 1 8 0 0 0 2 2 5 0 1 0 62 0 3 0 0 38 0 0 Matched sale-purchase transactions 20 Gross sales 196,078 425,214 511,126 61,669 62,362 54,343 52,640 40,310 35,159 21 Gross purchases 196,579 423,841 510,854 63,707 61,968 53,692 52,949 40,300 35,480 Repurchase agreements 22 Gross purchases 232,891 178,683 151,618 11,817 5,784 2,188 15,531 18,464 10,539 23 Gross sales 230,355 180,535 152,436 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 7,454 -2,352 -2,403 3,552 1,708 1,582 FEDERAL AGENCY OBLIGATIONS 2 2 2 6 5 7 Ou R G G tr e r r i d o o g e s s h s s m t s p p t a u r t l a i r e o n c s n h s s a a c s t e i s o ns 8 1 9 6 1 0 9 ,4 2 3 2 3 3 0 2 3 1 3 0 7 5 1 3 2 0 3 0 40 0 0 37 3 1 0 3 482 0 0 Repurchase agreements 28 Gross purchases 10,520 13,811 40,567 2,851 1,173 ,149 4,443 7,247 4,057 29 Gross sales 10,360 13,638 40,885 2,482 1,392 ,298 3,617 7,434 4,544 30 Net change in federal agency obligations 1,383 -426 345 -189 BANKERS ACCEPTANCES 31 Outright transactions, net -545 -196 0 0 0 0 0 0 0 410 159 -366 204 48 -252 -241 -684 1,400 32 Repurchase agreements, net -135 -37 -366 204 48 -252 -241 -684 1,400 33 Net change in bankers acceptances 34 ToAtaclc onuentt change in System Open Market 9,833 7,143 6,951 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 • November 1979 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1979 1979 Oct. 3P Oct. 10* Oct. 17p Oct. 24P Oct. 31* Aug. Sept P Oct P Consolidated condition statement ASSETS 1 Gold certificate account 11,228 11,212 11,196 11,196 11,194 11,259 11,228 11,194 2 Special drawing rights certificate account 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 3 Coin 455 450 457 456 449 441 454 449 Loans 1,089 515 44,,225577 4,106 2,672 1,572 1,157 2,672 5 Other 0 0 0 0 0 0 0 0 Acceptances 0 0 00 00 00 0 00 0 7 Held under repurchase agreements 0 0 0 0 317 475 1,053 317 Federal agency obligations 8 Bought outright 8,224 8,221 8,221 88,,222211 8,221 8,242 8,224 8,221 9 Held under repurchase agreements 0 0 0 0 57 153 1,099 57 U.S. governments securities Bought outright 10 Bills 39,377 42,876 43,380 42,657 44,028 42,905 44,232 44,028 11 Certificates—Special 0 0 0 0 0 0 0 0 12 Other 0 0 0 0 0 0 0 0 13 Notes 55,511 56,179 56,179 56,242 56,242 55,645 56,179 56,242 14 Bonds 14,185 14,185 14,185 14,185 14,185 14,085 14,185 14,185 15 Total i 109,073 113,240 113,744 113,084 114,455 112,635 114,596 114,455 16 Held under repurchase agreements 0 0 0 0 125 392 862 125 17 Total U.S. government securities 109,073 113,240 113,744 113,084 114,580 113,027 115,458 114,580 18 Total loans and securities 118,386 121,976 126,222 125,411 125,847 123,469 126,991 125,847 19 Cash items in process of collection 14,966 16,669 15,753 11,591 11,693 9,938 9,381 11,693 397 402 403 402 402 400 400 402 Other assets 21 Denominated in foreign currencies2 1,537 1,518 1,498 11,,449988 1,432 2,213 1,536 1,432 22 Allother 2,335 2,589 2,973 2,560 2,639 2,008 3,413 2,639 151,104 156,616 160,302 154,914 155,456 151,528 155,203 155,456 LIABILITIES 107,638 108,685 108,441 107,935 108,029 106,900 106,683 108,029 Deposits 25 Reserve accounts 27,833 31,531 3355,,111111 3311,,663388 32,192 29,493 29,485 32,192 27 Edge Act Corporations 0 0 0 0 369 0 0 369 28 U.S. agencies and branches of foreign banks. 0 0 0 0 0 0 0 0 29 Total 27,833 31,531 35,111 31,638 32,561 29,493 29,485 32,561 30 U.S. Treasury—General account 3,256 2,625 3,423 3,218 2,209 3,542 6,489 2,209 298 280 290 301 352 325 348 352 32 Other 613 686 466 582 286 663 780 286 32,000 35,122 39,290 35,739 35,408 34,023 37,102 35,408 34 Deferred availability cash items. 7,212 8,247 7,664 6,323 7,008 5,729 6,332 7,008 1,897 2,022 2,180 1,996 1,849 1,813 2,078 1,849 148,747 154,076 157,575 151,993 152,294 148,465 152,195 152,294 CAPITAL ACCOUNTS 1,135 1,135 1,135 1,135 1,136 1,131 1,135 1,136 38 Surplus... 1,078 1,078 1,078 1,078 1,078 1,078 1,078 1,078 144 327 514 708 948 854 795 948 40 Total liabilities and capital accounts 151,104 156,616 160,302 154,914 155,456 151,528 155,203 155,456 41 MEMO: Marketable U.S. government securities held in custody for foreign and international 83,286 85,297 83,696 83,029 81,928 81,928 82,703 81,928 Federal Reserve note statement 42 Federal Reserve notes outstanding (issued to Bank) 122,514 122,865 123,293 123,921 124,342 121,408 122,457 124,342 Collateral held against notes outstanding 11,228 11,212 11,196 11,196 11,194 11,259 11,228 11,194 44 Special Drawing Rights certificate account 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 688 382 1,293 2,246 1,743 1,090 848 1,743 46 U.S. government and agency securities 108,798 109,471 109,004 108,679 109,605 107,259 108,581 109,605 47 Total collateral 122,514 122,865 123,293 123,921 124,342 121,408 122,457 124,342 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 Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31 Aug. 31 Sept. 30 Oct. 31 1 Loans 1,089 515 4,257 4,106 2,672 1,572 1,157 2,672 2 Within 15 days 1,020 430 4,228 4,050 2,577 1,441 1,079 2,577 3 16 days to 90 days 69 85 29 56 95 131 78 95 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances 0 0 0 0 317 475 1,053 317 6 Within 15 days 0 0 0 0 317 475 1,053 317 7 16 days to 90 days 0 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. Government securities 109,073 113,240 113,744 113,084 114,580 113,027 115,458 114,580 10 Within 15 days i 4,588 3,437 3,185 3,095 6,848 2,821 3,481 6,848 11 16 days to 90 days 18,478 23,890 23,717 23,482 20,930 23,419 25,171 20,930 12 91 days to 1 year 35,060 34,298 35,227 34,857 35,036 35,477 34,983 35,036 13 Over 1 year to 5 years 26,270 26,938 26,938 26,973 27,089 26,793 27,146 27,089 14 Over 5 years to 10 years 12,294 12,294 12,294 12,294 12,294 12,221 12,294 12,294 15 Over 10 years 12,383 12,383 12,383 12,383 12,383 12,296 12,383 12,383 16 Federal agency obligations 8,224 8,221 8,221 8,221 8,278 8,395 9,323 8,278 17 Within 15 days i 33 12 64 52 109 281 1,186 109 18 16 days to 90 days 224 362 310 352 352 185 223 352 19 91 days to 1 year 1,412 1,263 1,280 1,350 1,350 1,242 1,369 1,350 20 Over 1 year to 5 years 4,386 4,415 4,398 4,290 4,290 4,452 4,376 4,290 21 Over 5 years to 10 years 1,427 1,427 1,427 1,435 1,435 1,439 1,427 1,435 22 Over 10 years 742 742 742 742 742 796 742 742 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 May June July Aug. Sept. Debits to demand deposits2 (seasonally adjusted) 11111111 AAAAAAAAllllllllllllllll ccccccccoooooooommmmmmmmmmmmmmmmeeeeeeeerrrrrrrrcccccccciiiiiiiiaaaaaaaallllllll bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 29,180.4 34,322.8 40,300.3 47,545.4 50.388.3 52,102.7 52,402.5 54,233.1 22222222 MMMMMMMMaaaaaaaajjjjjjjjoooooooorrrrrrrr NNNNNNNNeeeeeeeewwwwwwww YYYYYYYYoooooooorrrrrrrrkkkkkkkk CCCCCCCCiiiiiiiittttttttyyyyyyyy bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss................ 11,467.2 13,860.6 15,008.7 16,960.3 19.747.4 20,480.5 20.357.2 21,117.6 33333333 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 17,713.2 20,462.2 25,291.6 30,585.2 30,641.0 31,622.2 32.045.3 33,115.5 Debits to savings deposits 3 (not seasonally adjusted) 174.0 418.1 764.4 658.8 732.8 735.8 667.6 55555555 BBBBBBBBuuuuuuuussssssssiiiiiiiinnnnnnnneeeeeeeessssssssssssssss11111111 21.7 56.7 69.4 72.6 74.1 78.2 74.5 66666666 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrrssssssss 152.3 361.4 695.0 586.2 658.8 657.6 593.1 Demand deposit turnover2 (seasonally adjusted) 77777777 AAAAAAAAllllllllllllllll ccccccccoooooooommmmmmmmmmmmmmmmeeeeeeeerrrrrrrrcccccccciiiiiiiiaaaaaaaallllllll bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 116.8 129.2 139.4 160.3 167.3 171.9 173.1 175.0 88888888 MMMMMMMMaaaaaaaajjjjjjjjoooooooorrrrrrrr NNNNNNNNeeeeeeeewwwwwwww YYYYYYYYoooooooorrrrrrrrkkkkkkkk CCCCCCCCiiiiiiiittttttttyyyyyyyy bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss................ 411.6 503.0 541.9 619.1 685.4 717.7 709.1 711.5 99999999 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 79.8 85.9 96.7 113.6 112.5 115.2 116.9 118.2 Savings deposit turnover 3 (not seasonally adjusted) 1111111100000000 AAAAAAAAllllllllllllllll ccccccccuuuuuuuussssssssttttttttoooooooommmmmmmmeeeeeeeerrrrrrrrssssssss 1.6 1.9 3.6 3.1 3.4 3.4 3.1 1111111111111111 BBBBBBBBuuuuuuuussssssssiiiiiiiinnnnnnnneeeeeeeessssssssssssssss11111111 4.1 5.1 6.8 7.2 7.2 7.4 7.0 1111111122222222 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrrssssssss 1.5 1.7 3.4 2.9 3.2 3.2 2.9 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 Nonfinancial Statistics • November 1979 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1979 1975 1976 1977 1978 Dec. Dec. Dec. Dec. Item Apr. May June July Aug. Sept. Seasonally adjusted MEASURES 1 1 M-L 295.4 313.8 338.7 361.2 364.3 364.5 369.0 MI.2 374.3 377.8 2 M-1 + 456.8 517.2 560.6 587.2 585.1 584.1 590.1 595.1 598.3 601.9 3 M-2 664.8 740.6 809.4 875.8 889.8 893.8 904.4 914.1 922.5 931.9 4 M-3 1,092.4 1,235.6 1,374.3 1,500.1 1,530.8 1,537.0 1,552.3 1,567.0 N, 580.0 1,594.4 5 M-4 745.8 803.0 883.1 972.4 984.8 984.4 989.3 R998.8 1,008.4 1,020.0 6 M-5 1,173.5 1,298.0 1,448.0 1,596.7 1,625.9 1,627.6 1,637.2 1,651.7 RL,666.0 1,682.4 COMPONENTS 7 Currency 73.8 80.8 88.6 97.5 100.2 100.7 101.5 102.4 103.6 104.8 Commercial bank deposits 8 Demand 221.7 233.0 250.1 263.7 264.1 263.8 267.5 269.8 270.7 273.0 9 Time and savings 450.3 489.2 544.4 611.2 620.6 619.9 620.3 626.6 634.2 642.2 10 Savings 160.7 202.1 219.7 223.0 217.7 216.4 217.8 219.5 220.7 220.7 11 Negotiable CDs 2 81.0 62.4 73.7 96.6 95.0 90.6 84.9 84.7 85.9 88.1 12 Other time 208.6 224.7 251.0 291.5 307.9 313.0 317.6 322.4 327.6 333.4 13 Nonbank thrift institution deposits 3.. 427.7 495.0 564.9 624.4 641.0 643.2 647.9 652.9 R657.5 662.4 Not seasonally adjusted MEASURES1 14 M-L 303.9 322.6 348.2 371.3 367.4 359.1 368.2 R374.1 371.6 375.6 15 M-L + 463.6 524.2 568.0 595.2 590.7 580.6 591.0 598.8 595.6 597.8 16 M-2 670.0 745.8 814.9 881.5 896.8 892.1 906.0 917.0 919.3 927.2 17 M-3 1,095.0 1,238.3 1,377.2 1,502.8 1,540.8 1,536.4 1,556.3 1,573.0 RL,577.1 1,588.6 18 M-4 753.5 810.0 890.8 981.0 989.5 981.1 990.4 1,001.0 1,005.7 1,017.0 19 M-5 1,178.4 1,302.6 1,453.2 1,602.4 1,633.5 1,625.4 1,640.7 1,657.0 RL,663.4 1,678.4 COMPONENTS 20 Currency 75.1 82.1 90.1 99.1 99.9 100.6 101.8 103.2 103.9 104.5 Commercial bank deposits 21 Demand 228.8 240.5 258.1 272.2 267.5 258.5 266.4 270.9 267.7 271.1 22 Member 162.8 169.4 177.5 183.0 178.5 171.8 177.1 180.5 178.5 179.4 23 Domestic nonmember 62.6 67.5 76.2 85.2 85.1 82.6 84.8 86.1 85.3 87.4 24 Time and savings 449.6 487.4 542.6 609.7 622.1 622.0 622.2 627.0 634.1 641.4 25 Savings 159.1 200.2 217.7 220.9 220.1 218.2 219.4 221.4 220.7 218.9 26 Negotiable CDs 2 83.5 64.3 75.9 99.5 92.6 88.9 84.4 84.0 86.4 89.8 27 Other time 207.1 222.9 249.0 289.2 309.3 314.9 318.3 321.6 327.1 332.7 28 Other checkable deposits4 .7 1.4 2.1 3.0 3.2 3.3 3.3 3.4 3.4 3.4 29 Nonbank thrift institution deposits 3.. 424.9 492.5 562.3 621.4 644.0 644.3 650.3 656.0 '•657.8 661.4 30 U.S. government demand deposits 4.1 4.4 5.1 10.2 5.3 8.4 10.8 13.2 9.8 12.4 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 -f-: 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 5. Includes Treasury note balances beginning Nov. 2, 1978. certificates of deposit (CDs) other than negotiable CDs of $100,000 or more at large weekly reporting banks. NOTE. Latest monthly and weekly figures are available from the Board's M-3: M-2 plus the average of the beginning- and end-of-month deposits H.6 (508) release. Back data are available from the Banking Section, of mutual savings banks, savings and loan shares, and credit union shares Division of Research and Statistics. (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 Item 1976 1977 1978 Dec. Dec. Dec. Feb. Mar. Apr. May June July Aug. Sept. Seasonally adjusted 1 Reserves1 34.89 36.10 41.27 40.75 40.81 40.65 40.48 40.42 40.82 41.07 41.46 2 Nonborrowed 34.84 35.53 40.40 39.78 39.82 39.73 38.72 39.00 39.65 39.98 40.12 3 Required 34.61 35.91 41.04 40.54 40.66 40.47 40.34 40.20 40.61 40.85 41.27 4 Monetary base2 118.4 127.8 142.3 143.3 143.9 144.5 144.9 145.6 146.9 148.4 150.1 5 Deposits subject to reserve requirements3 528.6 568.6 616.7 619.7 616.4 618.6 613.9 613.1 618.7 623.7 630.5 6 Time and savings 354.1 386.7 429.4 436.1 434.1 432.0 428.7 425.9 429.4 434.4 439.8 Demand 7 Private 171.5 178.5 185.1 181.9 180.5 184.7 183.5 184.8 187.5 187.1 188.9 8 U.S. government 3.0 3.5 2.3 1.8 1.8 1.8 1.7 2.4 1.8 2.2 1.8 Not seasonally adjusted 9 Monetary base2 120.3 129.8 144.6 141.9 142.3 144.2 144.4 145.6 147.9 148.4 149.4 10 Deposits subject to reserve requirements3 534.8 575.3 624.0 614.3 614.3 621.1 610.9 613.9 619.2 620.4 629.0 11 Time and savings 353.6 386.4 429.6 434.2 434.9 432.3 429.8 427.2 429.8 434.1 439.4 Demand 12 Private 177.9 185.1 191.9 178.2 177.5 186.8 179.2 183.9 187.8 184.5 187.5 13 U.S. government 3.3 3.8 2.5 1.8 1.9 2.0 1.8 2.8 1.6 1.7 2.1 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 CCaatteeggoorryy 1977 1978 1977 1978 Dec. Dec. Dec. Dec. July P Aug.f Sept.P July? Aug.P Sept.* Seasonally adjusted Not seasonally adjusted 1 Total loans and securities2 891.1 61,014.3 ioi,092.2 1,102.8 1,122.8 899.1 61,023.8 io 1,093.7 1,102.7 1,124.7 2 U.S. Treasury securities 99.5 93.4 95.3 94.1 95.2 100.7 94.6 93.6 92.2 93.6 3 Other securities 159.6 6173.1 183.5 185.4 187.6 160.2 6173.9 183.3 185.0 187.6 4 Total loans and leases2 632.1 6747.8 iosn^ 823.3 840.0 638.3 6755.4 i0816.8 825.5 843.5 5 Commercial and industrial loans.. 5211.2 7246.5 10275.5 279.9 285.9 5212.6 7248.2 10276.9 279.6 285.8 6 Real estate loans 5175.2 210.5 10228.7 231.3 234.1 5175.5 210.9 10228.9 232.0 235.3 7 Loans to individuals 138.2 164.9 177.8 178.8 180.2 139.0 165.9 178.2 180.4 182.4 8 Security loans 20.6 19.4 23.6 2233..00 2233..55 22.0 20.7 22.7 23.0 23.6 9 Loans to nonbank financial institutions 525.8 927.1 1029.2 29.5 29.8 526.3 927.6 1°29.5 29.8 30.3 10 Agricultural loans 25.8 28.2 29.1 29.2 29.6 25.7 28.1 29.5 29.8 30.1 11 Lease financing receivables 5.8 7.4 8.3 8.6 8.7 5.8 7.4 8.3 8.6 8.7 12 All other loans 29.5 643.6 41.2 43.2 48.0 31.5 646.6 42.8 42.3 47.2 MEMO: 13 Total loans and investments plus loans sold23 895.9 61,018.1 iiooii,,009955..99 1,106.5 1,126.5 903.9 61,027.6 ioi,097.4 1,106.4 11,,112288..44 14 Total loans plus loans sold2-3 636.9 6751.6 i0817.2 827.0 843.7 643.0 6759.2 10820.5 829.2 847.2 15 Total loans sold to affiliates3 4.8 3.8 3.7 3.7 3.7 4.8 3.8 3.7 3.7 3.7 16 Commercial and industrial loans plus loans sold3 5213.9 8248.5 10278.3 282.6 288.7 5215.3 8250.1 10279.7 282.4 288.6 17 Commercial and industrial loans sold3 2.7 81.9 2.8 2.8 2.8 2.7 81.9 2.8 2.8 2.8 18 Acceptances held 7.5 6.8 8.2 8.0 8.6 8.6 7.5 7.9 7.5 8.0 19 Other commercial and industrial loans 5203.7 239.7 267.3 271.8 277.3 5203.9 240.9 269.1 272.1 277.8 20 To U.S. addressees4 5193.8 226.6 250.0 253.7 258.7 5193.7 226.5 251.7 254.2 259.2 21 To non-U.S. addressees 59.9 13.1 17.3 18.1 18.6 510.3 14.4 17.3 17.9 18.7 22 Loans to foreign banks 13.5 21.2 20.9 20.9 24.0 14.6 23.0 21.9 20.6 23.6 23 Loans to commercial banks in the United States 54.1 57.3 68.8 70.9 75.9 56.9 60.3 65.6 66.4 73.5 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • November 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 p AAccccoouunntt Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. DOMESTICALLY CHARTERED COMMERCIAL BANKS1 1 Loans and investments 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 1,117.7 2 Loans, gross 761.6 750.4 755.6 759.8 773.9 785.3 797.9 807.6 819.4 833.8 838.7 3 Interbank 45.3 41.3 42.1 42.3 44.4 45.9 46.3 48.1 50.3 53.6 54.1 4 Commercial and industrial 221.6 221.9 225.3 227.8 233.0 236.4 240.5 242.0 244.1 249.5 249.7 5 Other 494.7 487.2 488.2 489.6 496.5 503.0 511.2 517.4 525.0 530.8 534.8 6 U.S. Treasury securities 93.1 92.1 93.1 93.6 94.2 93.2 91.6 92.1 90.6 91.9 91.4 175.7 176.4 176.5 178.0 180.2 181.0 181.7 182.1 184.3 186.4 187.7 8 Cash assets, total 177.3 139:8 147.1 135.8 139.9 158.8 146.3 140.2 145.7 148.5 160.7 9 Currency and coin 15.5 15.2 15.0 15.2 15.6 16.0 16.3 16.1 16.8 16.7 16.6 10 Reserves with Federal Reserve Banks 34.4 29.8 29.7 30.0 33.9 32.8 32.6 29.6 33.7 31.6 34.1 11 Balances with depositary institutions 52.3 40.2 42.5 36.8 39.0 44.6 40.8 41.2 41.1 40.7 45.5 12 Cash items in process of collection... 75.1 54.6 59.9 53.7 51.4 65.4 56.5 53.4 54.1 59.5 64.6 60.9 64.0 62.4 58.9 55.8 52.7 55.1 53.9 53.8 57.5 57.5 14 Total assets/total liabilities and capital. 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 1,335.9 1,011.3 961.3 969.2 954.9 964.4 975.5 971.3 975.2 982.9 996.6 1,023.6 16 Demand 399.2 347.5 352.1 335.0 348.0 357.8 352.4 352.6 352.4 358.7 376.6 612.1 613.8 617.1 619.8 616.4 617.8 618.9 622.6 630.5 637.9 647.0 18 Savings 219.7 215.2 215.2 216.8 215.9 215.5 216.4 218.3 216.6 213.4 207.6 19 Time 392.4 398.6 401.9 403.0 400.5 402.3 402.5 404.2 413.8 424.5 439.4 20 Borrowings 114.6 110.8 111.9 115.2 123.5 132.0 137.1 137.2 140.1 147.0 137.4 21 Other liabilities 49.1 56.6 59.0 60.9 60.8 65.4 65.5 64.9 69.7 71.2 73.9 22 Residual (assets less liabilities) 93.6 94.0 94.7 95.1 95.3 98.1 98.9 98.7 101.1 103.3 100.9 MEMO: 23 U.S. Treasury note balances included 12.4 12.0 4.0 4.8 5.9 4.9 12.9 11.9 8.6 1177..88 8.4 24 Number of banks 14,602 14,586 14,593 14,597 14,610 14,616 14,620 14,584 14,607 14,616 14, 605 ALL COMMERCIAL BANKING INSTITUTIONS2 25 Loans and investments 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 1,197.7 825.5 809.7 815.6 827.2 837.7 854.0 870.5 875.9 891.8 915.9 57.6 52.1 53.5 56.1 57.3 61.8 60.4 60.7 63.8 69.2 28 Commercial and industrial 251.2 251.8 255.6 259.8 264.9 269.2 275.2 277.5 280.9 288.2 29 Other 516.8 505.9 506.5 511.3 515.4 523.0 534.9 537.7 547.0 558.5 30 U.S. Treasury securities 94.5 93.3 94.3 94.9 95.6 94.6 93.1 93.5 91.9 93.5 177.0 177.6 177.8 179.4 181.5 182.3 183.1 183.5 185.7 188.3 32 Cash assets, total 196.8 158.2 166.8 157.0 156.4 176.4 168.0 160.8 166.4 172.2 15.5 15.2 15.1 15.2 15.6 16.1 16.3 16.1 16.8 16.7 34 Reserves with Federal Reserve Banks 35.0 30.2 30.3 30.7 34.5 33.4 33.4 30.4 34.5 32.5 35 Balances with depositary institutions 69.9 56.8 60.3 56.0 53.7 60.1 60.5 59.7 59.9 62.4 36 Cash items in process of collection... 76.4 56.0 61.3 55.1 52.5 66.8 57.7 54.6 55.2 60.6 76.0 78.4 76.9 74.1 70.8 67.7 71.4 69.7 70.9 76.8 38 Total assets/total liabilities and capital. 1,369.8 1,316.8 1,331.0 1,332.5 1,342.1 1,375.5 1,386.1 1,383.2 1,406.7 1,446.7 1,049.0 994.3 1,002.5 994.0 997.0 1,012.5 1,015.6 1,012.1 1,020.6 1,043.7 418.9 363.2 368.1 355.7 361.7 375.1 376.4 369.6 368.8 383.2 630.0 631.2 634.4 638.3 635.3 637.4 639.2 642.5 651.8 660.5 220.3 215.9 215.9 218.0 216.9 216.7 217.2 219.1 217.6 214.2 43 Time 409.7 415.2 418.4 420.3 418.5 420.6 422.0 423.5 434.2 446.2 144.0 138.0 138.0 141.7 150.4 159.4 165.4 165.8 169.6 182.1 81.4 89.0 94.6 99.8 97.1 102.8 104.2 104.4 113.1 115.4 46 Residual (assets less liabilities) 95.5 95.9 96.5 97.1 97.2 100.0 100.9 100.8 103.2 105.6 MEMO: 47 U.S. Treasury note balances included 12.4 12.0 4.0 4.8 5.9 44..99 1122..99 1111..99 8.6 1177..88 14,923 14,913 14,926 14,930 14,946 14,954 14,968 14,933 14,960 14,972 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 447766,,661100 448888,,224400 552233,,000000 554422,,221188 Loans 2 578,734 601,122 657,509 695,443 340,691 351,311 384,722 403,812 3 560,077 581,143 636,318 672,207 329,971 339,955 372,702 390,630 Investments 4 U.S. Treasury securities 101,461 100,568 99,333 97,001 55,727 53,345 52,244 50,519 5 Other 147,500 153,042 157,936 163,986 80,191 83,583 86,033 87,886 6 129,562 130,726 159,264 157,393 76,072 74,641 92,050 90,728 7 Total assets/total liabilities1 1,003,970 1,040,945 1,129,712 1,172,772 583,304 599,743 651,360 671,166 8 Deposits 825,003 884477,,337722 992222,,665577 994455,,887744 469,377 476,381 520,167 552266,,993322 Demand 9 3,022 2,817 7,310 7,956 1,676 1,632 4,172 4,483 10 Interbank 44,064 44,965 49,843 47,203 23,149 22,876 25,646 22,416 11 Other 285,200 284,544 319,873 312,707 163,346 161,358 181,821 176,025 Time and savings 12 Interbank 8,248 7,721 8,731 8,987 4,907 4,599 5,730 5,791 13 Other 484,467 507,324 536,899 569,020 276,296 285,915 302,795 318,215 14 75,291 81,137 89,339 98,351 54,421 57,283 63,218 68,948 15 Total capital accounts 75,061 75,502 79,082 83,074 41,319 43,142 44,994 47,019 16 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 144,597 152,514 157,464 207,085 221,896 239,265 256,749 Loans 18 Gross 102,277 102,117 110,243 115,736 135,766 147,694 162,543 175,894 19 99,474 99,173 107,205 112,470 130,630 142,015 156,411 169,106 Investments 20 U.S. Treasury securities 18,849 19,296 18,179 16,886 26,884 27,926 28,909 29,595 21 Other 22,874 23,183 24,091 24,841 44,434 46,275 47,812 51,259 22 32,859 35,918 42,305 43,057 20,631 20,166 24,908 23,606 23 189,579 195,452 210,442 217,384 231,086 245,748 267,910 284,221 24 Deposits 149,491 152,472 163,436 167,403 206,134 218,519 239,053 251,539 Demand 25 429 371 1,241 1,158 917 813 1,896 2,315 26 19,295 20,568 22,346 23,117 1,619 1,520 1,849 1,669 27 Other 52,204 52,570 57,605 55,550 69,648 70,615 80,445 81,131 Time and savings 28 2,384 2,134 2,026 2,275 956 988 973 920 29 75,178 76,827 80,216 85,301 132,993 144,581 153,887 165,502 30 17,310 19,697 21,736 23,167 3,559 4,155 4,384 6,235 31 13,199 13,441 14,182 14,670 17,542 18,919 19,905 21,384 32 1,023 1,019 1,014 1,005 8,639 8,705 8,729 8,760 Noninsured nonmember Total nonmember 33 Loans and investments, gross 18,819 22,940 24,415 28,699 225,904 244,837 263,681 285,448 Loans 34 16,336 20,865 22,686 26,747 152,103 168,559 185,230 202,641 35 16,209 20,679 22,484 26,548 146,840 162,694 178,896 195,655 Investments 36 U.S. Treasury securities 1,054 993 879 869 27,938 28,919 29,788 30,465 37 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 13,325 14,658 16,844 19,924 219,460 233,177 255,898 271,463 Demand 41 4 8 10 8 921 822 1,907 2,323 42 1,277 1,504 1,868 2,067 2,896 3,025 3,718 3,736 43 3,236 3,588 4,073 4,814 72,884 74,203 84,518 85,946 Time and savings 44 1,041 1,164 1,089 1,203 1,997 22,,115522 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 48 275 293 310 317 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

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 Other loans, 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 36 Secured by farmland 8,418 3,655 23 34 453 3,146 37 Secured by residential properties 117,176 81,370 5,362 1,559 31,212 43,236 38 1- to 4-family residences 111,674 77,422 4,617 1,460 29,774 41,570 39 FHA-insured or VA-guaranteed 7,503 6,500 508 44 3,446 2,502 40 Conventional 104,171 70,922 4,109 1,417 26,328 39,068 41 Multifamily residences 5,502 3,948 746 99 1,438 1,665 42 FHA-insured 399 340 132 27 88 92 43 Conventional 5,103 3,609 613 72 1,350 1,573 44 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 6 6 6 6 6 4 5 7 Al S l i o n O t g h t l O e h e r - e t p h r l a o e y i r a n m n s s t e a n l t lm lo e a n n t s l o t a o n i s n dividuals 2 3 1 1 2 0 0 7 ;5 0 0 3 1 4 2 6 7 7 0 0 2 1 1 6 0 4 4 , , , , 6 4 7 9 2 0 7 0 9 6 8 2 3 1 1 , , , 5 6 3 2 4 9 0 4 5 4 2 9 1,2 8 1 9 5 3 1 0 1 8 9 2 4 6 6 , , , , 6 9 1 6 7 4 0 8 8 8 0 0 1 3 3 8 1 , , , , 5 8 6 1 3 4 8 6 3 4 4 2 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- Liability or capital account commercial Large banks member banks banks1 Total All other New York City of Other City Chicago large 75 Demand deposits 369,030 282,450 66,035 10,690 100,737 104,988 86,591 76 Mutual savings banks 1,282 1,089 527 256 305 194 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 81 Commercial banks in United States 39,596 38,213 21,414 1,807 10,803 4,189 1,393 82 Banks in foreign countries 7,379 7,217 5,461 207 1,251 298 162 83 Certified and officers' checks, etc 14,253 11,315 4,443 352 3,354 3,166 2,937 84 Time deposits 368,562 266,496 38,086 15,954 98,525 113,931 102,066 85 Accumulated for personal loan payments 79 66 0 0 65 13 86 Mutual savings banks 399 392 177 40 148 27 7 87 Other individuals, partnerships, and corporations 292,120 210,439 29,209 12,074 76,333 92,824 81,680 88 U.S. government 864 689 61 40 356 232 175 89 States and political subdivisions 59,087 40,010 1,952 1,554 16,483 20,020 19,077 90 Foreign governments, central banks, etc 6,672 6,450 3,780 1,145 1,401 124 222 91 Commercial banks in United States 7,961 7,289 2,077 999 3,585 629 672 92 Banks in foreign countries 1,381 1,161 829 103 219 9 220 93 Savings deposits 223,326 152,249 10,632 2,604 54,825 84,188 71,077 94 Individuals and nonprofit organizations 207,701 141,803 9,878 2,448 51,161 78,316 65,897 95 Corporations and other profit organizations 11,216 7,672 519 148 3,195 3,809 3,544 96 U.S. government 82 65 2 3 24 35 17 97 States and political subdivisions 4,298 2,682 215 4* 437 2,025 1,616 98 All other 30 27 18 8 2 3 99 Total deposits 960,918 701,195 114,753 29,248 254,087 303,107 259,733 100 Federal funds purchased and securities sold under agreements to repurchase 91,981 85,582 21,149 8,777 41,799 13,857 6,398 101 Commercial banks 42,174 39,607 6,991 5,235 21,609 5,773 2,566 102 Brokers and dealers 12,787 11,849 2,130 1,616 6,381 1,722 939 103 Others 37,020 34,126 12,028 1,926 13,809 6,362 2,894 104 Other liabilities for borrowed money 8,738 8,352 3,631 306 3,191 1,225 386 105 Mortgage indebtedness 1,767 1,455 234 27 701 491 316 106 Bank acceptances outstanding 16,661 16,140 8,398 1,260 6,070 412 521 107 Other liabilities 27,124 23,883 8,860 1,525 9,020 4,477 3,494 108 Total liabilities 1,107,188 836,607 157,026 41,144 314,868 323,569 270,849 109 Subordinated notes and debentures 5,767 4,401 1,001 79 2,033 1,287 1,366 110 Equity capital 85,540 63,174 12,871 2,947 21,177 26,178 22,380 111 Preferred stock 88 36 0 0 5 31 52 112 Common stock 17,875 12,816 2,645 570 4,007 5,594 5,064 113 Surplus 32,341 23,127 4,541 1,404 8,148 9,034 9,217 114 Undivided profits 33,517 26,013 5,554 921 8,680 10,858 7,509 115 Other capital reserves 1,719 1,182 132 52 337 661 538 116 Total liabilities and equity capital 1,198,495 904,182 170,899 44,170 338,079 351,034 294,595 117 D M e E m M a O n : d deposits adjusted2 252,337 171,864 18,537 5,576 60,978 86,774 80,472 Average for last 15 or 30 days 118 Cash and due from bank 146,283 124,916 36,862 6,030 45,731 36,293 21,379 119 Federal funds sold and securities purchased under agreements to resell 43,873 33,682 4,272 1,887 16,007 11,517 10,307 120 Total loans 651,874 483,316 76,750 25,722 184,790 196,054 168,558 121 Time deposits of $100,000 or more 183,614 150,160 32,196 13,216 65,776 38,972 33,454 122 Total deposits 944,593 687,543 107,028 28,922 250,804 300,789 257,062 123 Federal funds purchased and securities sold under agreements to repurchase 92,685 86,635 22,896 9,473 40,541 13,725 6,053 124 Other liabilities for borrowed money 8,716 8,326 3,679 370 3,211 1,067 390 125 Standby letters of credit outstanding 18,820 17,658 10,063 1,477 4,820 1,297 1,162 126 Time deposits of $100,000 or more 186,837 152,553 32,654 13,486 66,684 39,728 34,284 127 Certificates of deposit 160,227 129,667 27,950 11,590 56,383 33,743 30,560 128 Other time deposits 26,610 22,886 4,704 1,896 10,301 5,985 3,724 129 Number of banks 14,390 5,593 12 9 153 5,419 8,810 1. Member banks exclude and nonmember banks include 13 noninsured NOTE. Data include consolidated reports, including figures for all trust companies that are members of the Federal Reserve System. bank-premises subsidiaries and other significant majority-owned do- 2. Demand deposits adjusted are demand deposits other than domestic mestic subsidiaries. Securities are reported on a gross basis before 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 • November 1979 1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of 5750 Million or More on December 31, 1977, Assets and Liabilities Millions of dollars, Wednesday figures 1979 Account Sept. 5 Sept. 12 Sept. 19 Sept. 26 Oct. 3* Oct. 10* Oct. 17* Oct. 24* 1 Cash items in process of collection 56,041 52,354 52,696 49,020 53,576 56,569 54,960 47,021 2 Demand deposits due from banks in the United States 16,658 15,413 16,988 14,540 16,941 17,929 18,026 16,020 3 All other cash and due from depositary institutions 31,301 26,235 28,857 31,963 28,503 32,976 36,264 31,936 4 Total loans and securities,. 503,707 501,258 506,488 501,788 507,014 508,938 502,765 498,687 Securities 5 U.S. Treasury securities 36,756 37,014 35,976 35,717 34,196 35,966 35,644 35,160 6 Trading account 5,335 5,557 4,928 4,939 4,016 5,169 4,935 4,468 7 Investment account, by maturity 31,421 31,457 31,048 30,778 30,180 30,798 30,709 30,691 8 One year or less 8,669 8,671 8,213 7,915 7,839 8,121 8,033 8,001 9 Over one through five years 18,414 18,530 18,571 18,577 18,059 18,381 18,350 18,379 10 Over five years 4,338 4,257 4,264 4,285 4,281 4,296 4,326 4,312 11 Other securities 70,790 70,542 70,745 70,774 71,161 70,812 70,867 70,716 12 Trading account 5,162 4,867 4,572 4,446 4,761 4,337 4,143 3,911 13 Investment account 65,629 65,675 66,173 66,328 66,400 66,475 66,724 66,806 14 U.S. government agencies 14,550 14,567 14,960 15,013 15,067 15,116 15,344 15,263 15 States and political subdivision, by maturity. 48,366 48,391 48,521 48,641 48,667 48,709 48,712 48,872 16 One year or less 6,373 6,359 6,314 6,327 6,538 6,514 6,408 6,462 17 Over one year 41,994 42,032 42,207 42,313 42,129 42,195 42,304 42,410 18 Other bonds, corporate stocks and securities 2,712 2,716 2,691 2,675 2,666 2,649 2,668 2,671 Loans 19 Federal funds sold1 31,229 29,317 31,304 28,746 31,807 30,962 26,074 24,196 20 To commercial banks 20,692 18,014 21,023 20,011 19,614 21,201 17,637 16,534 21 To nonbank brokers and dealers in securities. 7,998 8.520 7,574 6,263 7,959 6,908 5,876 5,168 22 To others 2,539 2,782 2,707 2,472 4,233 2,852 2,561 2,494 23 Other loans, gross 376,552 376,082 380,232 378,310 381,555 382,985 382,019 380,517 24 Commercial and industrial 149,479 149,893 151,476 151,717 152,493 152,939 151,323 151,730 25 Bankers' acceptances and commercial paper 4,014 3,924 3,844 4,155 3,954 4,027 3,410 3,105 26 All other 145,465 145,969 147,632 147,562 148,539 148,911 147,913 148,624 27 U.S. addresses 138,910 139,448 141,099 140,978 141,966 142,190 141,187 141,783 28 Non-U.S. addressees 6,556 6.521 6,533 6,584 6,573 6,721 6,726 6,841 29 Real estate 92,475 92,975 93,536 93,759 94,128 94,483 95,037 95,470 30 To individuals for personal expenditures 68,202 68,382 68,641 68,916 69,140 69,240 69,392 69,567 To financial institutions 31 Commercial banks in the United States.. . . 3,272 3,268 3,050 3,027 3,618 3,284 3,183 3,287 32 Banks in foreign countries 6,984 7,125 7,207 7,089 7,308 7,729 7,483 7,250 33 Sales finance, personal finance companies, etc 10,252 10,064 9,962 9,108 9,367 9,790 9,521 9,572 34 Other financial institutions 16,362 16,600 16,587 16,180 16,588 16,808 16,477 16,524 35 To nonbank brokers and dealers in securities. 9,734 8,449 9,807 8,036 8,658 8,483 9,265 7,208 36 To others for purchasing and carrying securities 2 2,506 2,499 2,501 2,494 2,508 2,536 2,508 2,475 37 To finance agricultural production 4,974 4,986 5,032 5,053 5,032 5,021 4,987 4,941 38 All other 12,312 11,840 12,432 12,932 12,716 12,674 12,843 12,494 39 LESS: Unearned income 6,614 6,673 6,733 6,746 6,718 6,777 6,809 6,846 40 Loan loss reserve 5,007 5,024 5,036 5,012 4,988 5,011 5,030 5,055 41 Other loans, net 364 931 364,385 368,463 366,552 369,850 371,198 370,180 368,615 42 Lease financing receivables 7,109 7,185 7,215 7,231 7,308 7,335 7,355 7,379 43 All other assets 57,065 58,555 58,343 57,905 58,272 57,663 57,195 57,533 44 Total assets 671,881 661,000 670,587 662,447 671,614 681,410 676,565 658,578 Deposits 45 Demand deposits 198,104 189,187 191,696 181,665 195,657 199,308 193,740 179,114 46 Mutual savings banks 824 722 608 634 809 828 733 646 47 Individuals, partnerships, and corporations.. 138,917 134,580 130,093 126,297 134,634 138,029 134,648 126,990 48 States and political subdivisions 4,831 4,362 4,342 4,766 4,507 4,610 4,630 4,332 49 U.S. government 1,013 1,638 3,010 1,893 2,824 1,236 939 727 50 Commercial banks in the United States 35,583 31,155 35,465 30,927 33,545 35,523 34,720 30,524 51 Banks in foreign countries 7,308 7,562 7,356 7,790 8,268 8,628 8,067 6,668 52 Foreign governments and official institutions. 1,470 1,272 1,562 1,394 1,512 1,223 1,581 1,338 5 5 3 4 Tim Ce e r t a i n fi d e d s a a v n i d n g o s f f d i e c p er o s s ' i c ts h ecks 25 8 2 , , 1 3 5 4 7 4 25 7 4 , , 8 4 9 1 7 4 25 9 5 , , 2 5 5 5 8 9 25 7 6 , , 9 70 6 8 4 25 9 8 , , 5 4 5 0 6 6 25 9 9 , , 2 1 3 0 1 0 26 8 0 , ,1 4 2 22 6 26 7 0 , ,4 8 5 9 3 0 55 Savings 77,451 77,248 76,701 76,076 76,781 76,557 76,036 75,295 56 Individuals and nonprofit organizations 72,349 72,148 71,721 71,122 71,844 71,597 71,165 70,487 57 Partnerships and corporations operated for profit 4,325 4,285 4,178 4,164 4,124 4,142 4,065 4,065 58 Domestic governmental units 756 792 780 764 789 797 783 724 59 All other 22 23 22 26 24 20 23 19 60 Time 174,893 177,167 178,858 180,632 181,624 182,543 184,090 185,158 61 Individuals, partnerships, and corporations 143,293 145,050 146,607 148,175 149,237 149,915 151,337 152,256 62 States and political subdivisions 21,522 21,677 21,666 21,789 21,856 22,114 22,232 22,361 63 U.S. government 496 501 498 495 477 476 488 476 64 Commercial banks in the United States 4,348 4,679 4,879 4,991 5,038 5,019 5,004 5,155 65 Foreign governments, official institutions, and banks 5,235 5,260 5,207 5,182 5,016 5,019 5,028 4,910 66 Federal funds purchased 3 101,817 95,763 94,791 93,072 94,380 100,769 96,406 92,249 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks 642 2,013 434 1,071 677 190 3,746 3,118 68 Treasury tax-and-loan notes 1,146 2,421 9,101 11,596 4,275 5,354 4,065 5,985 69 All other liabilities for borrowed money 16,464 15,978 16,269 16,096 15,757 14,842 14,739 13,281 70 Other liabilities and subordinated note and debentures 57,163 56,885 58,504 58,022 58,046 57,208 59,218 59,765 71 Total liabilities 627,681 616,662 626,354 618,132 627,197 636,772 632,040 613,966 72 Residual (total assets minus total liabilities)4... 44,200 44,338 44,232 44,216 44,417 44,638 44,525 44,612 1. Includes securities purchased under agreements to resell. 4. This is not a measure of equity capital for use in capital adequacy 2. Other than financial institutions and brokers and dealers. analysis or for other analytic uses. 3. Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks All 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of £1 Billion or More on December 31, 1977 Assets and Liabilities Millions of dollars, Wednesday figures 1979 Account Sept. 5 Sept. 12 Sept. 19 Sept. 26 Oct. 3? Oct. 10? Oct. 17? Oct. 24* Oct. 31? 1 Cash items in process of collection 53,018 49,948 50,182 46,585 51,164 53,681 52,567 44,848 2 Demand deposits due from banks in the United States 15,600 14,787 16,218 13,833 16,085 17,005 17,258 15,367 3 All other cash and due from depositary institutions 29,826 24,752 27,034 30,180 26,810 31,370 34,546 30,233 4 Total loans and securities 471,958 469,131 474,653 469,793 474,594 476,568 470,436 466,508 Securities 5 U.S. Treasury securities 34,390 34,650 33,609 33,352 31,838 33,618 33,288 32,855 6 Trading account 5,286 5,508 4,887 4,896 3,968 5,128 4,878 4,430 7 Investment account, by maturity 29,104 29,142 28,722 28,456 27,870 28,490 28,410 28,425 8 One year or less 8,149 8,137 7,671 7,374 7,304 7,591 7,509 7,499 9 Over one through five years 16,897 17,028 17,070 17,078 16,580 16,906 16,876 16,918 10 Over five years 4,058 3,976 3,981 4,005 3,987 3,993 4,024 4,008 11 Other securities 65,543 65,296 65,486 65,510 65,893 65,550 65,600 65,425 12 Trading account 5,071 4,772 4,492 4,368 4,676 4,257 4,069 3,839 13 Investment account 60,472 60,524 60,993 61,142 61,218 61,293 61,531 61,586 14 U.S. government agencies 13,535 13,555 13,946 13,994 14,043 14,094 14,312 14,231 15 States and political subdivision, by maturity. 44,396 44,417 44,522 44,638 44,671 44,712 44,714 44,847 16 One year or less 5,793 5,774 5,739 5,759 5,938 5,916 5,831 5,870 17 Over one year 38,603 38,643 38,783 38,879 38,733 38,796 38,883 38,977 18 Other bonds, corporate stocks and securities 2,541 2,551 2,525 2,511 2,503 2,486 2,505 2,508 Loans 19 Federal funds soldi 29,052 26,758 29,125 26,515 29,278 28,464 23,638 21,873 20 To commercial banks 18,872 16,041 19,226 18,181 17,657 19,175 15,641 14,687 21 To nonbank brokers and dealers in securities. 7,704 8,062 7,250 5,926 7,479 6,505 5,504 4,760 22 To others 2,477 2,655 2,649 2,408 4,142 2,785 2,493 2,426 23 Other loans, gross 353,769 353,294 357,365 355,336 358,455 359,887 358,907 357,411 24 Commercial and industrial 141,947 142,370 143,965 144,162 144,888 145,360 143.736 144,182 25 Bankers' acceptances and commercial paper 3,917 3,834 3,741 4,050 3,850 3,928 3,316 3,015 26 Allother 138,030 138,536 140,223 140,112 141,037 141,432 140,419 141,167 27 U.S. addresses 131,529 132,068 133,736 133,573 134.508 134,762 133.737 134,371 28 Non-U.S. addressees 6,501 6,467 6,488 6,538 6,529 6,670 6,682 6,796 29 Real estate 86,921 87,405 87,927 88,139 88,486 88,832 89,377 89,813 30 To individuals for personal expenditures 60,418 60,585 60,796 61,050 61,219 61,315 61,442 61,597 To financial institutions 31 Commercial banks in the United States 3,184 3,184 2,979 2,954 3,547 3.208 3,115 3,213 32 Banks in foreign countries 6,937 7,064 7,146 7,021 7,249 7,660 7,426 7,170 33 Sales finance, personal finance companies, 10,061 9,879 9,770 8,911 9,168 9,592 9,320 9,374 34 Other financial institutions 15,901 16,127 16,117 15,698 16,101 16,317 16,013 16,065 35 To nonbank brokers and dealers in securities. 9,591 8,325 9,707 7,936 8,545 8,388 9,169 7,112 36 To others for purchasing and carrying securities2 2,306 2,299 2,294 2,281 2,297 2,322 2,290 2,259 3 3 7 8 T A o ll f o in th a e n r c e agricultural production 1 4 1 , , 7 7 9 0 6 7 1 4 1 , , 8 2 0 4 9 6 1 4 1 , , 8 8 5 0 5 8 1 4 2 , , 8 3 7 0 7 7 1 4 2 , , 8 1 5 0 5 0 1 4 2 , , 8 0 4 4 5 7 1 4 2 , , 8 2 1 0 1 8 1 4 1 , , 7 8 6 6 5 2 39 LESS : Unearned income 6,061 6,115 6,170 6,180 6,153 6.209 6,235 6,269 40 Loan loss reserve 4,735 4,751 4,762 4,740 4,718 4,742 4,761 4,786 41 Other loans, net 342,973 342,428 346,432 344,415 347,584 348,936 347,911 346,356 42 Lease financing receivables 6,919 6,995 7,023 7,039 7,115 7,143 7,161 7,184 43 All other assets 55,498 57,038 56,849 56,383 56,742 56,136 55,644 55,964 44 Total assets 632,819 622,649 631,959 623,813 632.509 641,903 637,612 620,105 Deposits 45 Demand deposits 186,259 177,935 180,454 170,699 184,087 187,487 182,131 168,224 46 Mutual savings banks 781 690 585 609 773 794 705 619 47 Individuals, partnerships, and corporations.. 129,760 125,691 121,357 117,837 125,674 128,862 125,551 118,459 48 States and political subdivisions 4,332 3,829 3,779 4,016 3,991 4,024 4,032 3,682 49 U.S. government 902 1,475 2,728 1,680 2,624 1,141 832 671 50 Commercial banks in the United States 33,928 29,864 34,171 29,730 32,055 33,943 33,368 29,242 51 Banks in foreign countries 7,244 7,497 7,296 7,726 8,217 8,571 7,972 6,612 52 Foreign governments and official institutions . 1,469 1,267 1,562 1,380 1,512 1,222 1,548 1,337 53 Certified and officers' checks 7,843 7,621 8,976 7,720 9,241 8,930 8,123 7,602 54 Time and savings deposits 234,920 236,973 238,182 239,271 240,750 241,432 242,444 242,866 5 5 5 6 Sa I v n in d g iv s i duals and nonprofit organizations 7 6 1 7, , 1 8 9 9 1 4 7 6 1 7 , , 6 00 9 6 3 7 6 1 6 , ,6 2 2 2 6 4 7 66 0 , , 0 6 6 3 9 8 7 6 1 6 , , 3 7 0 4 1 2 7 6 1 6 , , 1 5 0 2 8 4 7 6 0 6 , , 6 1 2 2 3 1 6 6 5 9 , , 4 9 9 3 2 2 57 Partnerships and corporations operated for profit 4,002 3,967 3,867 3,848 3,820 3,833 3,760 3,763 58 Domestic governmental units 681 698 710 697 717 732 720 660 59 All other 20 21 20 24 22 19 21 17 60 Time 163,025 165,281 166,958 168,634 169,448 170,323 171,821 172,934 61 Individuals, partnerships, and corporations 133,643 135,399 136,951 138,428 139,306 139,934 141,288 142,228 62 States and political subdivisions 19,527 19,670 19,656 19,786 19,858 20,117 20,254 20,407 63 U.S. government 489 494 492 488 470 469 481 470 64 Commercial banks in the United States 4,140 4,466 4,660 4,757 4,806 4,791 4,776 4,924 65 Foreign governments, official institutions, and banks 5,226 5,251 5,198 5,174 5,008 5,012 5,023 4,905 66 Federal funds purchased 3 96,556 90,724 89,708 88,047 89,345 95,502 91,567 87,226 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks 631 1,908 429 1,038 670 182 3,638 2,932 68 Treasury tax-and-loan notes 1,046 2,239 8,469 10,770 3,963 4,980 3,750 5,532 69 All other liabilities for borrowed money 16,063 15,613 15,901 15,682 15,269 14,487 14,363 12,998 70 Other liabilities and subordinated note and debentures 55,911 55,708 57,364 56,828 56,823 56,003 57,993 58,514 71 Total liabilities 591,386 581,101 590,506 582,335 590,906 600,074 595,886 578,293 72 Residual (total assets minus total liabilities)4... 41,433 41,548 41,453 41,478 41,603 41,829 41,725 41,812 1. Includes securities purchased under agreements to resell. 4. This is not a measure of equity capital for use in capital adequacy 2. Other than financial institutions and brokers and dealers. analysis or for other analytic uses. 3. Includes securities sold under agreements to repurchases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • November 1979 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1979 AAccccoouunntt Sept. 5 Sept. 12 Sept. 19 Sept. 26 Oct. 3» Oct. 10? Oct. 17? Oct. 24? Oct. 31? 1 Cash items in process of collection 1166,,995522 1177,,334466 1199,,331111 1177,,662244 1188,,665544 2200,,221100 2200,,556633 1166,,665522 1188,,004455 2 Demand deposits due from banks in the United States 1100,,112299 1100,,550033 1111,,558888 99,,333355 1111,,229911 1111,,773377 12,451 1100,,884466 1111,,884466 3 All other cash and due from depositary institutions 7,471 5,522 4,868 7,060 5,476 8,435 10,533 6,172 8,997 4 Total loans and securities1 109,217 107,588 112,263 107,559 109,678 108,838 108,546 106,930 108,510 Securities 5 U.S. Treasury securities2 6 Trading account2 7 Investment account, by maturity 6,522 6,644 6,590 6,157 6,004 6,303 6,299 6,311 6,314 8 One year or less 1,320 1,450 1,384 1,049 1,064 1,309 1,310 1,324 1,343 9 Over one through five years 4,644 4,636 4,647 4,550 4,376 4,427 4,411 4,409 4,385 10 Over five years 558 558 558 558 563 567 578 578 586 11 Other securities2 12 Trading account2 13 Investment account 11,359 11,421 11,648 11,662 11,742 11,753 11,962 11,959 11,939 14 U.S. government agencies 1,912 1,920 2,145 2,145 2,146 2,155 2,374 2,371 2,356 15 States and political subdivision, by maturity. 8,900 8,958 8,963 8,981 9,041 9,050 9,041 9,037 9,028 16 One year or less 1,361 1,374 1,339 1,352 1,409 1,405 1,384 1,386 1,400 17 Over one year 7,539 7,584 7,623 7,629 7,632 7,645 7,657 7,650 7,628 18 Other bonds, corporate stocks and securities 548 544 541 535 555 548 547 551 555 Loans 19 Federal funds sold 3 8,015 6,858 9,758 7,282 7,977 6,777 5,762 5,755 5,749 20 To commercial banks 3,698 3,054 6,427 4,463 4,323 3,044 2,452 3,156 3,198 21 To nonbank brokers and dealers in securities. 3,452 2,959 2,662 2,091 2,471 2,822 2,486 1,848 1,823 22 To others 865 845 669 727 1,183 911 824 751 728 23 Other loans, gross 85,784 85,149 86,758 84,959 86,434 86,495 87,014 85,403 87,034 24 Commercial and industrial 44,221 4444,,339944 45,327 45,338 4455,,443344 4455,,660088 4444,,994477 4444,,996699 4455,,338833 25 Bankers' acceptances and commercial paper 1,182 1,158 1,190 1,567 1,264 1,327 923 820 1,228 26 All other 43,039 43,236 44,137 43,771 44,169 44,282 44,024 44,148 44,155 27 U.S. addressees 40,802 41,118 41,981 41,602 42,068 42,067 41,792 41,889 42,025 28 Non-U.S. addressees 2,236 2,118 2,156 2,169 2,101 2,215 2,232 2,259 2,130 29 Real estate 11,649 11,696 11,774 11,805 11,881 11,840 11,926 11,949 12,062 30 To individuals for personal expenditures 7,832 7,876 7,932 7,970 8,005 8,029 8,049 8,052 8,100 To financial institutions 31 Commercial banks in the United States 1,031 1,236 983 965 1,486 1,191 1,157 1,246 1,684 32 Banks in foreign countries 3,236 3,326 3,317 3,157 3,370 3,762 3,518 3,339 3,208 33 Sales finance, personal finance companies, ETC 3,940 3,821 3,762 3,154 3,356 3,583 3,418 3,449 3,574 34 Other financial institutions 4,796 4,834 4,814 4,753 4,886 4,866 4,875 4,894 5,058 35 To nonbank brokers and dealers in securities. 5,656 4,559 5,586 4,105 4,513 4,133 5,330 3,953 4,180 36 To others for purchasing and carrying securities4 476 479 446644 466 468 458 457 438 444 37 To finance agricultural production 226 236 253 250 251 243 237 246 249 38 All other 2,720 2,691 2,544 2,997 2,784 2,782 3,098 2,867 3,093 39 LESS: Unearned income 892 903 912 938 921 929 921 928 938 40 Loan loss reserve 1,571 1,581 1,579 1,563 1,558 1,560 1,569 1,572 1,587 41 Other loans, net 83,321 82,665 84,266 82,459 83,955 84,005 84,523 82,904 84,508 42 Lease financing receivables 1,381 1,385 1,400 1,397 1,420 1,422 1,420 1,424 1,424 43 All other assets 5 27,533 29,081 27,746 26,794 26,543 27,379 26,436 26,748 27,410 44 Total assets 172,683 171,426 177,176 169,770 173,062 178,022 179,950 168,771 176,232 Deposits 45 Demand deposits 60,875 58,509 63,735 57,383 62,566 64,047 63,865 56,493 61,880 46 Mutual savings banks 405 365 306 327 409 471 383 340 394 47 Individuals, partnerships, and corporations... 31,854 29,494 29,064 27,727 30,701 32,238 30,693 28,293 31,879 48 States and political subdivisions 658 385 375 406 443 429 489 397 434 49 U.S. government 118 348 793 356 639 165 172 140 229 50 Commercial banks in the United States 17,768 17,595 21,405 17,635 18,583 18,932 20,424 17,796 18,765 51 Banks in foreign countries 5,391 5,721 5,466 5,923 6,205 6,494 6,208 4,796 5,626 52 Foreign governments and official institutions. 1,114 925 1,269 1,075 1,144 914 1,244 877 722 53 Certified and officers' checks 3,566 3,676 5,057 3,934 4,441 4,403 4,250 3,854 3,830 54 Time and savings deposits 40,552 41,146 41,490 41,800 42,436 42,720 42,751 42,254 42,903 55 Savings 9,930 9,924 9,858 9,765 9,903 9,889 9,802 9,693 9,511 56 Individuals and nonprofit organizations 9,361 9,364 9,299 9,201 9,324 9,307 9,219 9,141 8,993 57 Partnerships and corporations operated for profit 440077 440000 339922 390 387 385 373 365 358 58 Domestic governmental units 151 149 156 160 180 188 197 178 149 59 All other 11 11 10 14 13 9 12 8 11 60 Time 30,622 31,222 31,632 32,035 32,533 32,831 32,950 32,560 33,391 61 Individuals, partnerships, and corporations. 25,048 25,495 25,875 26,171 26,715 26,971 27,050 26,678 27,391 62 States and political subdivisions 1,510 1,564 1,554 1,599 1,564 1,636 1,664 1,713 1,772 63 U.S. government 70 69 60 59 40 48 51 50 48 64 Commercial banks in the United States 1,170 1,244 1,315 1,384 1,434 1,418 1,437 1,457 1,511 65 Foreign governments, official institutions, and banks 2,824 2,849 2,827 2,822 2,780 2,757 2,748 2,663 2,670 66 Federal funds purchased 6 29,369 28,555 27,288 26,640 25,426 28,729 26,827 24,456 27,983 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks .... 930 220000 394 2,390 578 68 Treasury tax-and-loan notes 138 516 i ,764 1,867 656 990 786 1,177 941 69 All other liabilities for borrowed money 7,827 7,694 7,993 8,134 7,447 7,258 6,960 7,356 6,390 70 Other liabilities and subordinated note and debentures 20,327 20,428 21,279 20,246 20,499 20,582 22,769 22,854 22,392 71 Total liabilities 159,088 157,779 163,551 156,272 159,424 164,327 166,349 155,168 162,489 72 Residual (total assets minus total liabilities)7.. 13,595 13,647 13,625 13,498 13,638 13,694 13,601 13,603 13,743 1. Excludes trading account securities. 5. Includes trading account securities. 2. Not available due to confidentiality. 6. Includes securities sold under agreements to repurchase. 3. Includes securities purchased under agreements to resell. 7. This is not a measure of equity capital for use in capital adequacy 4. Other than financial institutions and brokers and dealers. analysis or for other analytic uses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A23 1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1979 CCaatteeggoorryy Sept. 5 Sept. 12 Sept. 19 Sept. 26 Oct. 3p Oct. 10*> Oct. 17 p Oct. 24? Oct. 31p BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and investments adjusted*... 491,364 491,673 494,184 490,509 495,487 496,240 493,783 490,768 493,447 2 Total loans (gross) adjusted i 383,817 384,117 387,462 384,018 390,130 389,462 387,272 384,891 387,346 3 Demand deposits adjusted 2 105,466 104,041 100,524 99,825 105,711 105,981 103,121 100,842 105,322 4 Time deposits in accounts of $100,000 or more. 118,028 120,006 121,234 122,462 123,217 123,878 125,124 125,676 126,343 5 Negotiable CDs 83,836 85,708 86,747 87,853 88,336 88,799 89,692 90,102 90,664 6 Other time deposits 34,192 34,298 34,486 34,609 34,881 35,079 35,433 35,575 35,678 7 Loans sold outright to affiliates 3 3,757 3,747 3,704 3,724 3,606 3,600 3,589 3,570 3,633 8 Commercial and industrial 2,770 2,742 2,751 2,772 2,685 2,681 2,653 2,623 2,648 9 Other 987 1,006 953 952 922 919 936 947 985 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and investments adjustedi... 460,698 460,772 463,381 459,577 464,260 465,136 462,676 459,664 462,452 11 Total loans (gross) adjusted i 360,765 360,826 364,285 360,715 366,529 365,968 363,789 361,385 363,933 12 Demand deposits adjusted 2 98,412 96,648 93,373 92,703 98,244 98,721 95,364 93,463 97,776 13 Time deposits in accounts of $100,000 or more. 110,312 112,284 113,558 114,706 115,332 115,986 117,200 117,839 118,486 14 Negotiable CDs 78,063 79,948 81,022 82,033 82,385 82,816 83,710 84,198 84,757 32,250 32,335 32,537 32,674 32,947 33,171 33,490 33,641 33,729 16 Loans sold outright to affiliates 3 3,705 3,694 3,653 3,672 3,556 3,549 3,536 3,506 3,576 2,751 2,722 2,730 2,750 2,664 2,659 2,631 2,590 2,621 18 Other 954 972 923 923 892 889 906 916 955 BANKS IN NEW YORK CITY 19 Total loans (gross) and investments adjusted i. 4. 106,952 105,782 107,345 104,632 106,348 107,093 107,428 105,026 106,153 89,070 87,717 89,106 86,813 88,602 89,037 89,167 86,756 87,900 21 Demand deposits adjusted 2 26,036 23,219 22,226 21,768 24,690 24,739 22,705 21,905 24,840 22 Time deposits in accounts of $100,000 or more. 24,481 25,006 25,295 25,683 26,065 26,309 26,402 26,053 26,714 23 Negotiable CDs 17,022 17,467 17,741 18,108 18,447 18,566 18,609 18,227 18,810 7,459 7,539 7,554 7,575 7,618 7,743 7,793 7,826 7,904 1. Exclusive of loans and federal funds transactions with domestic com- 3. Loans sold are those sold outright to a bank's own foreign branches, mercial banks. nonconsolidated nonbank affiliates of the bank, the bank's holding com- 2. All demand deposits except U.S. government and domestic banks pany (if not a bank) and nonconsolidated nonbank subsidiaries of the less cash items in process of collection. holding company. 4. Excludes trading account securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • November 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 June 27 July 25 Aug. 29 Sept. 26 Oct. 31* Q2 Q3 Aug. Sept. Oct. 1 Durable goods manufacturing 20,905 21,521 21,703 23,594 23,453 1,323 2,689 182 1,891 -141 2 Nondurable goods manufacturing... 17,403 17,612 18,441 18,907 18,969 -89 1,504 829 466 62 3 Food, liquor, and tobacco 4,371 4,348 4,598 4,906 4,922 -440 535 250 308 17 4 Textiles, apparel, and leather 4,701 4,860 5,090 5,029 4,858 495 328 231 -62 -170 5 Petroleum refining 1,967 1,929 1,841 1,972 2,140 -310 6 -88 131 167 6 Chemicals and rubber 3,448 3,437 3,641 3,627 3,809 -63 179 204 -14 182 7 Other nondurable goods 2,916 3,038 3,270 3,372 3,239 230 456 232 102 -134 8 Mining (including crude petroleum and natural gas) 11,008 11,221 11,442 11,681 11,736 858 673 221 240 54 9 Trade 23,976 25,029 24,396 24,662 25,274 1,493 686 -633 266 612 10 Commodity dealers 1,917 2,100 1,675 1,859 2,212 25 -58 -424 184 353 11 Other wholesale 11,741 12,075 12,038 11,940 12,101 777 199 -37 -98 160 12 Retail 10,318 10,854 10,683 10,863 10,962 692 544 -171 180 99 13 Transportation, communication, and other public utilities 15,324 15,396 15,788 16,761 16,785 1,256 1,436 393 972 24 14 Transportation 6,451 6,495 6,691 6,834 6,998 180 382 195 143 164 15 Communication 2,050 2,106 2,139 2,325 2,400 199 274 33 186 76 16 Other public utilities 6,823 6,794 6,959 7,602 7,386 877 779 164 643 -216 17 Construction 5,583 5,861 5,805 5,891 5,699 210 308 -56 86 -192 18 Services 17,250 17,822 18,082 18,359 18,786 1,177 1,109 260 277 428 19 All other i 15,040 13,925 14,193 13,720 14,135 1,076 -1,320 268 -473 415 20 Total domestic loans 126,490 128,387 129,851 133,575 134,838 7,306 7,085 1,463 3,724 1,262 21 MEMO: Term loans (original maturity more than 1 year) included in domestic loans 64,240 63,586 65,293 67,391 68,514 3,725 3,152 1,708 2,098 1,122 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. Feb. Mar. Apr. May June July Aug. Total nondeposit funds 1 Seasonally adjusted2 c54.6 62.7 84.9 83.1 95.8 100.8 104.9 111.2 115.8 119.5 130.3 2 Not seasonally adjusted c53.3 61.3 83.9 82.2 93.7 98.5 102.6 113.4 115.6 112222..22 113311..99 Federal funds, RPs, and other borrowings from nonbanks 3 3 Seasonally adjusted 3 47.1 58.4 74.8 73.2 80.2 81.0 82.3 84.3 84.5 86.6 92.9 4 Not seasonally adjusted 45.8 57.0 73.8 72.3 78.1 78.7 80.1 86.5 84.3 89.3 94.5 5 Net Eurodollar borrowings, not seasonally adjusted. c3.7 c —1.3 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 Domestic chartered banks net positions with own foreign branches, not seasonally adjusted 5 -6.0 -12.5 -10.7 c —10.2 -6.3 -4.5 -1.9 2.6 5.8 6.3 8.9 8 Gross due from balances 12.8 21.1 25.5 c24.9 23.3 22.5 21.6 19.7 20.0 20.1 19.2 9 Gross due to balances 6.8 8.6 14.8 c14.7 17.0 18.0 19.7 22.3 25.7 26.3 2288..11 10 Foreign-related institutions net positions with directly related institutions, not seasonally adjusted 6 9.7 11.1 17.0 16.4 18.3 20.8 20.8 20.6 21.7 22.8 24.9 11 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 12 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 13 Security RP borrowings, seasonally adjusted7 27.9 36.3 43.8 43.8 42.9 42.7 43.0 42.2 45.0 42.8 40.9 14 Not seasonally adjusted 27.0 35.1 42.4 40.8 41.4 42.2 42.5 44.8 44.5 4422..55 4422..55 15 U.S. Treasury demand balances, seasonally adjusted 8 3.9 4.4 8.6 12.0 8.0 6.2 5.1 9.3 9.2 15.3 12.4 16 Not seasonally adjusted 4.4 5.1 10.2 11.9 8.3 6.5 5.3 8.4 10.8 1133..22 99..88 17 Time deposits, $100,000 or more, seasonally adjusted 9 136.0 159.8 204.4 209.0 212.1 208.4 202.1 196.8 189.6 190.4 192.6 18 Not seasonally adjusted 138.4 162.5 207.8 209.7 209.3 207.8 200.4 196.0 189.4 188.9 192.7 1. Commercial banks are those in the 50 states and the District of bank balances, loan RPs, and participations in pooled loans. Includes Columbia with national or state charters plus U.S. branches, agencies, averages of daily figures for member banks and averages of current and and New York investment company subsidiaries of foreign banks and previous month-end data for foreign-related institutions. Edge Act corporations. 4. Loans initially booked by the bank and later sold to affiliates that 2. Includes seasonally adjusted federal funds, RPs, and other borrow- are still held by affiliates. Averages of Wednesday data. ings from nonbanks and not seasonally adjusted net Eurodollars and 5. Includes averages of daily figures for member banks and quarterly loans to affiliates. Includes averages of Wednesday data for domestic call report figures for nonmember banks. chartered banks and averages of current and previous month-end data for 6. Includes averages of current and previous month-end data. foreign-related institutions. 7. Based on daily average data reported by 46 large banks. Digitized for FRApSrEo 3 m . R O i ss t o h r e y r n b o o t r e r o o w r i n d g u s e a b r il e l , b g o iv r e r n ow f i o n r g s t he o n p u a r n p y o s i e n s o t f r u b m or e r n o t w , i s n u g c h m o a n s ey a no 8 te . s In at c l c u o d m es m U er .S ci . a T l r b e a a n su k r s y . A de v m er a a n g d es d o e f p o d s a it il s y a d n a d t a T . reasury tax and loan http://fraser.stlouifsofre tdh.eo brgan/ king business. This includes borrowings from Federal Reserve 9. Averages of Wednesday figures. Banks and from foreign banks, term federal funds, overdrawn due from 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 TTTyyypppeee ooofff hhhooollldddeeerrr 1977 1978 19792 11997744 11997755 11997766 DDeecc.. DDeecc.. DDeecc.. Dec. June Sept. Dec. Mar. June Sept. 11111 AAAAAllllllllll hhhhhooooollllldddddeeeeerrrrrsssss—————IIIIInnnnndddddiiiiivvvvviiiiiddddduuuuuaaaaalllllsssss,,,,, pppppaaaaarrrrrtttttnnnnneeeeerrrrrssssshhhhhiiiiipppppsssss,,,,, aaaaannnnnddddd 225.0 236.9 250.1 274.4 271.2 278.8 294.6 270.4 285.6 292.4 cccccooooorrrrrpppppooooorrrrraaaaatttttiiiiiooooonnnnnsssss 19.0 20.1 22.3 25.0 25.7 25.9 27.8 24.4 25.4 26.7 118.8 125.1 130.2 142.9 137.7 142.5 152.7 135.9 145.1 148.8 73.3 78.0 82.6 91.0 92.9 95.0 97.4 93.9 98.6 99.2 33333 NNNNNooooonnnnnfffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll bbbbbuuuuusssssiiiiinnnnneeeeessssssssss 2.3 2.4 2.7 2.5 2.4 2.5 2.7 2.7 2.8 2.8 11.7 11.3 12.4 12.9 12.4 13.1 14.1 13.5 13.7 14.9 66666 OOOOOttttthhhhheeeeerrrrr Weekly reporting banks 1978 19793 11997755 11997766 11997777 DDeecc.. DDeecc.. DDeecc.. Sept. Oct. Nov. Dec. Mar. June Sept. 77777 AAAAAllllllllll hhhhhooooollllldddddeeeeerrrrrsssss—————IIIIInnnnndddddiiiiivvvvviiiiiddddduuuuuaaaaalllllsssss,,,,, pppppaaaaarrrrrtttttnnnnneeeeerrrrrssssshhhhhiiiiipppppsssss,,,,, aaaaannnnnddddd 124.4 128.5 139.1 139.7 141.3 142.7 147.0 121.9 128.8 132.7 15.6 17.5 18.5 18.9 19.1 19.3 19.8 16.9 18.4 19.7 99999 NNNNNooooonnnnnfffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll bbbbbuuuuusssssiiiiinnnnneeeeessssssssss 69.9 69.7 76.3 74.1 75.0 75.7 79.0 64.6 68.1 69.1 29.9 31.7 34.6 37.1 37.5 37.7 38.2 31.1 33.0 33.7 2.3 2.6 2.4 2.4 2.5 2.5 2.5 2.6 2.7 2.8 1111122222 OOOOOttttthhhhheeeeerrrrr 6.6 7.1 7.4 7.3 7.2 7.5 7.5 6.7 6.6 7.4 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 1979 1976 1977 1978 Instrument Dec. Dec. Dec. Mar. Apr. May June July Aug. Sept. Commercial paper (seasonally adjusted) 52,971 65,101 83,665 90,796 92,725 96,106 101,516 102,447 103,907 107,621 Financial companies i Dealer-placed paper 2 2 Total 7,261 8,884 12,296 14,247 14,961 15,551 16,537 17,042 17,379 18,207 3 Bank-related 11,,990000 22,,113322 33,,552211 33,,779933 44,,225511 44,,114411 3,826 33,,995511 44,,006622 44,,448855 Directly placed paper 3 4 Total 32,511 40,484 51,630 55,653 55,313 57,886 61,256 60,532 60,402 61,369 5,959 7,102 12,314 12,642 12,788 13,799 15,130 14,722 15,817 15,930 13,199 15,733 19,739 20,896 22,451 22,669 23,723 24,873 26,126 28,045 Bankers dollar acceptances (not seasonally adjusted) 7 Total 22,523 25,450 33,700 34,617 34,391 35,286 36,989 39,040 42,354 42,147 Holder 8 Accepting banks 10,442 10,434 8,579 7,645 7,535 7,844 8,180 '8,288 7,994 8,419 9 Own bills 8,769 8,915 7,653 6,535 6,685 6,895 6,956 r7,243 7,138 7,288 10 Bills bought 1,673 11,,551199 927 1,110 849 950 1,224 rl,045 856 831 Federal Reserve Banks 991 954 1 204 252 0 1,400 1,159 475 1,053 12 Foreign correspondents 375 362 664 793 861 940 971 952 957 1,470 13 Others 10,715 13,904 24,456 25,975 25,744 26,501 27,837 '28,641 32,928 31,205 Basis 4,992 6,378 8,574 9,281 8,679 9,007 9,202 9,499 9,847 9,724 15 Exports from United States 4,818 5,863 7,586 8,104 8,087 8,367 8,599 8,784 9,578 9,354 16 All other 12,713 13,209 17,540 17,232 17,625 17,912 19,189 20,756 22,929 23,069 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 for uFnRdeArSwrEitRin g; and other investment activities. as communications, construction, manufacturing, mining, wholesale and 2. Includes all financial company paper sold by dealers in the open retail trade, transportation, and services. http://fraser.smtalorukeist.f ed.org/ Federal Reserve Bank of St. Louis

A26 DomesticN onfinancial Statistics • November 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—Nov. 1 10% 1979—Aug. 16.. 12 1978—Apr. 8.00 1979—Jan 11.75 6 28.. 12% May 8.27 11.75 17, 1TA June 8.63 11.75 24, 1111%% Sept. 7, , 1234 July. 9.00 11.75 14 13 Aug. 9.01 11.75 Dec. 26 11WW 21 13% Sept. 9.41 11.65 28. . 13% Oct.. 9.94 July 11.54 1979—June 19 1111%% Nov. 10.94 11.91 Oct. 9, 14% Dec. 11.55 Sept 12.90 July 27, 1134 23, . 15 14.39 1.35 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 6-11, 1979 Size of loan (in thousands of dollars) 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 4,349,784 148,187 115,179 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 1122..3311 1122..2233 1122..4444 1122..5533 12.42 12.61 12.21 5 Interquartile range1 11.75-12.82 11.02-13.65 10.60-13.69 11.75-13.52 11.75-13.25 11.99-13.03 11.75-12.40 Percentage of amount of loans 4499..00 1199..66 2211..44 3322..33 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 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) 1122..2255 1122..5577 1122..8822 12.91 12.02 12 Interquartile range1 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 4488..88 3322..88 5588..11 68.2 50.3 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 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 1122..5522 1111..4499 1122..4499 1122..7799 12.95 12.64 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 6600..66 1144..33 2244..99 5577..11 6688..88 80.7 91.0 82.4 96.5 95.9 85.7 94.2 71.5 63.2 66.8 67.9 75.0 74.3 Type of construction 23 1- to 4-family 4400..11 8822..55 8844..88 5533..88 41.9 13.1 9.4 11..88 5.1 13.5 13.8 10.3 50.5 1155..66 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 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 6.2 6.9 6.6 8.0 5.6 4.2 4.5 29 Weighted average interest rate (percent per 11.28 1100..8866 11.08 10.89 11.12 11.57 12.40 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 1111..1188 1100..6611 11.12 1100..3399 11.36 11.05 12.58 11.08 10.81 10.58 11.49 10.58 12.29 2 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 2 2 ( 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 July Aug. Sept. Oct. Oct. 6 Oct. 13 Oct. 20 Oct. 27 Nov. 3 Money market rates 1 Federal funds* 5.05 5.54 7.94 10.47 10.94 11.43 13.77 11.91 12.00 13.22 15.14 15.61 2 Pr 9 im 0- e t o c o 1 m 1 m 9- e d r a c y ia l paper2* 3 5.24 5.54 7.94 9.87 10.43 11.63 13.23 11.79 1133..1133 1133..3355 1144..1100 n.a. 3 4- to 6-month 5.35 5.60 7.99 9.82 10.39 11.60 13.23 11.76 13.18 13.32 14.10 n.a. 4 Finance company paper, directly placed, 3- to 6-month2'3 5.22 5.49 7.78 9.39 9.82 10.59 11.76 10.76 11.39 11.82 12.50 n.a. 5 Prime bankers acceptances, 90-day3*4 5.19 5.59 8.11 9.99 10.62 11.70 13.44 12.04 13.49 13.59 14.32 14.11 Certificates of deposit, secondary market 5 6 1-month 5.07 5.48 7.88 1100..0044 1100..5588 1111..7700 1133..3366 1111..9944 1133..2266 1133..3388 1144..3366 1144..1177 7 3-month 5.27 5.64 8.22 10.11 10.71 11.89 13.66 12.19 13.52 13.71 14.71 14.45 8 6-month 5.62 5.92 8.61 10.23 10.86 12.01 13.83 12.46 13.69 13.91 14.87 14.49 9 Eurodollar deposits, 3-month6 5.57 6.05 8.74 10.87 11.53 12.61 14.59 12.79 13.86 14.71 15.14 15.65 U.S. Treasury bills3-? Secondary market 10 3-month 4.98 5.27 7.19 9.24 9.52 10.26 1111..7700 10.43 1111..6622 1111..9911 1122..6600 1122..0077 5.26 5.53 7.58 9.24 9.49 10.20 11.66 10.43 11.53 11.82 12.54 12.14 12 1-year 5.52 5.71 7.74 8.87 9.16 9.89 11.23 10.07 11.30 11.40 11.94 11.65 Auction average 8 4.989 5.265 7.221 9.262 9.450 10.182 11.472 10.313 10.808 11.836 1122..993322 1122..225566 5.266 5.510 7.572 9.190 9.450 10.125 11.339 10.327 10.662 11.716 12.651 12.193 Capital market rates U.S. TREASURY NOTES AND BONDS Constant maturities 9 15 1-year 5.88 6.09 8.34 9.64 9.98 10.84 12.44 11.02 12.50 12.68 1133..3311 1122..9911 16 2-year 6.45 8.34 9.14 9.46 10.06 11.49 10.23 11.24 11.62 12.44 12.13 17 3-year 6.77 6.69 8.29 8.94 9.14 9.69 10.95 9.85 10.65 11.01 11.83 11.64 18 5-year 7.18 6.99 8.32 8.90 9.06 9.41 10.63 9.61 10.42 10.70 11.37 11.25 19 7-year 7.42 7.23 8.36 8.92 9.05 9.38 10.47 9.58 10.29 10.56 11.09 11.00 20 10-year 7.61 7.42 8.41 8.95 9.03 9.33 10.30 9.53 10.09 10.37 10.89 10.78 21 20-year 7.86 7.67 8.48 8.92 8.97 9.21 9.99 9.38 9.85 10.04 10.42 10.44 22 30-year 88..4499 88..9933 88..9988 99..1177 99..8855 99..3322 99..7711 99..8888 1100..2255 1100..2266 Composite1 O 23 3 to 5 years 6.94 6.85 8.30 8.88 9.08 9.56 10.75 9.72 10.48 10.79 11.57 11.43 24 Over 10 years (long-term) 6.78 7.06 7.89 8.35 8.42 8.68 9.44 8.85 9.28 9.51 9.87 9.88 STATE AND LOCAL NOTES AND BONDS Moody's series11 25 Aaa 5.66 5.20 5.52 5.58 55..7722 5.90 6.25 5.95 6.35 6.35 6.35 6.35 26 Baa 7.49 6.12 6.27 6.11 6.36 6.75 7.34 6.75 7.90 7.00 7.70 7.90 27 Bond Buyer series12 6.64 5.68 6.03 6.13 6.20 6.52 7.08 6.64 7.12 7.18 7.38 7.26 CORPORATE BONDS 28 Seasoned issues, all industries13 9.01 8.43 9.07 9.69 9.74 9.93 10.71 10.17 10.45 10.74 11.11 11.32 By rating groups 29 Aaa 8.43 8.02 8.73 9.20 99..2233 9.44 10.13 9.66 9.91 10.09 10.50 10.73 30 Aa 8.75 8.24 8.92 9.49 9.53 9.70 10.46 9.94 10.11 10.44 10.97 11.06 31 A 9.09 8.49 9.12 9.75 9.85 10.03 10.83 10.27 10.63 10.87 11.19 11.50 32 Baa 9.75 8.97 9.45 10.29 10.35 10.54 11.40 10.81 11.10 11.56 11.80 11.98 Aaa utility bonds14 33 New issue 8.48 8.19 8.96 9.58 99..4488 9.83 10.97 10.22 10.88 11.05 11.45 11.49 34 Recently offered issues 8.49 8.19 8.97 9.53 9.49 9.87 10.91 10.25 10.79 11.00 11.36 11.43 MEMO : Dividend /price ratio15 35 Preferred stocks 7.97 7.60 8.25 88..9933 99..0022 9.16 7.44 7.83 7.53 7.39 7.18 7.28 36 Common stocks 3.77 4.56 5.28 5.50 5.30 5.31 5.56 5.26 5.49 5.59 5.76 5.72 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, based 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 auction averages, 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • November 1979 1.37 STOCK MARKET Selected Statistics 1979 Indicator 1976 1977 1978 Apr. May June July Aug. Sept. Oct. 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 57.50 56.21 57.61 58.38 61.19 6611..8899 59.27 60.44 57.84 58.30 63.64 62.21 63.57 64.24 67.71 69.17 66.68 39.57 41.07 43.25 45.92 45.60 47.53 48.85 52.48 52.21 48.07 4 Utility 36.97 40.91 39.23 38.63 37.48 38.44 38.88 39.26 38.39 36.58 52.94 55.23 56.74 59.50 58.80 61.87 64.43 68.40 67.21 61 .64 6 Standard & Poor's Corporation (1941-43 = 10) i.. 102.01 98.18 96.11 102.10 99.73 101.73 102.71 107.36 108.60 104.47 7 American Stock Exchange (Aug. 31,1973 = 100). 101.63 116.18 144.56 181.14 180.81 196.08 197.63 208.29 223.00 212.33 Volume of trading (thousands of shares) 21,189 20,936 28,591 3311,,003333 2288,,335522 34,662 3322,,441166 35,870 37,576 37,301 2,565 2,514 3,922 4,262 3,888 5,236 3,890 4,503 5,405 5,446 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers/dealers2 8,166 9,993 11,035 11,416 11,314 11,763 12,019 12,236 12,178 11 Margin stock 3 7,960 9,740 10,830 11,220 11,130 11,590 11,840 12,060 12,000 204 250 205 194 183 172 178 176 177 11 2 3 1 2 1 1 1 * 1 n. a. Free credit balances at brokers4 585 640 835 835 840 895 885 910 960 1,855 2,060 2,510 2,550 2,590 2,880 3,025 2,995 3,325 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 17 Under 40 12.0 18.0 33.0 23.0 22.0 21.0 19.0 14.0 16.0 18 40-49 23.0 36.0 28.0 29.0 30.0 28.0 28.0 26.0 26.0 n.a. 19 50-59 35.0 23.0 18.0 23.0 23.0 26.0 28.0 31.0 30.0 20 60-69 15.0 11.0 10.0 12.0 12.0 12.0 12.0 14.0 14.0 21 70-79 8.7 6.0 6.0 7.0 7.0 7.0 7.0 8.0 8.0 22 80 or more 6.0 5.0 5.0 6.0 6.0 6.0 6.0 7.0 6.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions oi dollars) 6... 8,776 9,910 13,092 13,218 13,099 13,634 n. a. n. a. I Distribution by equity status (percent) 1 24 Net credit status 41.3 43.4 41.3 42.1 41.3 42.6 n. a. n.a. n. a. n. a. Debit status, equity of i 25 60 percent or more 47.8 44.9 45.1 47.6 48.6 47.3 11 n. a. n. a. 26 Less than 60 percent 10.9 11.7 13.6 10.3 10.1 10.1 JI 1 n. a. n. a. 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 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.? Savings and loan associations 1 Assets 391,907 459,241 523,649 529,820 534,168 539,715 543,459 549,181 555,571 561,209 566,675 570,485 2 Mortgages 323,005 381,163 432,858 435,460 437,905 441,420 445,705 451,054 456,629 460,710 464,706 468,324 3 Cash and investment securities1 35,724 39,150 44,855 47,653 49,018 50,130 48,674 4488,,225577 48,231 49,477 4499,,998899 4499,,117711 4 Other 33,178 38,928 45,936 46,707 47,245 48,165 49,080 49,870 50,711 51,022 51,980 52,990 5 Liabilities and net worth 391,907 459,241 523,649 529,820 534,168 539,715 543,459 549,181 555,571 561,209 566,675 570,485 6 Savings capital 335,912 386,800 431,009 435,752 438,633 446,981 445,831 447,872 454,738 456,756 457,958 462,714 7 Borrowed money 19,083 27,840 42,960 42,468 41,368 41,592 43,765 44,380 47,051 48,495 50,497 52,741 8 FHLBB 15,708 19,945 31,990 31,758 31,004 31,123 32,389 33,003 34,266 35,286 36,009 37,652 9 Other 3,375 7,895 10,970 10,610 10,364 10,469 11,376 11,377 12,785 13,209 14,488 15,089 10 Loans in process 6,840 9,911 10,737 10,445 10,287 10,346 10,706 11,136 11,278 11,328 11,066 10,895 11 Other 8,074 9,506 9,918 11,971 14,250 10,919 12,971 15,283 11,703 13,530 15,743 12,455 12 Net worth 2 21,998 25,184 29,025 29,284 29,630 29,877 30,186 30,510 30,801 31,100 31,411 31,680 13 MEMO: Mortgage loan commitments outstanding 3., 14,826 19,875 18,911 18,053 19,038 21,085 22,923 23,569 22,777 22,366 22,288 22,382 Mutual savings banks** 14 Assets 134,812 147,287 158,174 158,892 160,078 161,866 Loans 15 Mortgage 81,630 88,195 95,157 95,552 95.821 96,136 16 Other 5,183 6,210 7,195 7,744 8^455 9,421 Securities 17 U.S. government 5,840 5,895 4,959 4,838 4,801 4,814 18 State and local government. 2,417 2,828 3,333 3,328 3,167 3,126 19 Corporate and other4 33,793 37,918 39,732 40,007 40,307 40,658 20 Cash 2,355 2,401 3,665 3,274 3,306 3,410 21 Other assets 3,593 3,839 4,131 4,149 4,222 4,300 22 Liabilities 134,812 147,287 158,174 158,892 160,078 161,866 23 Deposits 122,877 134,017 142,701 142,879 143,539 145,650 145,096 145,056 146,057 145,757 145,713 24 Regular 5 121,961 132,744 141,170 141,388 142,071 144,042 143,210 143,271 144,161 143,843 143,731 25 Ordinary savings 74,535 78,005 71,816 69,244 68,817 68,829 67,758 67,577 68,104 67,537 66,733 26 Time and other 47,426 54,739 69,354 72,145 73,254 75,213 75,452 75,694 76,057 76,306 76,998 27 Other 916 1,272 1,531 1,491 1,468 1,608 1,886 1,784 1,896 1,914 1,982 28 Other liabilities 2,884 3,292 4,565 5,032 5,485 5,048 5,050 5,172 4,545 5,578 6,350 29 General reserve accounts 9,052 9,978 10,907 10,980 11,054 11,167 11,085 11,153 11,212 11,264 11,324 30 MEMO: Mortgage loan commitments outstanding®.. 2,439 4,066 4,400 4,366 4,453 4,482 4,449 4,352 4,214 4,071 4,123 Life insurance companies 31 Assets 321,552 351,722 389,924 394,185 396,190 399,579 402,963 405,627 409,853 414,120 418,350 Securities 32 Government 17,942 19,553 20,009 20,244 20,222 20,463 20,510 20,381 20,397 20,468 20,472 33 United States 7, 5,368 5,315 4,822 5,063 5,114 5,234 5,272 5,149 5,178 5,228 5,229 34 State and local 5,594 6,051 6,402 6,348 6,255 6,259 6,268 6,272 6,241 6,243 6,258 35 Foreign 8 6,980 8,187 8,785 8,833 8,853 8,970 8,970 8,960 8,978 8,997 8,985 36 Business 157,246 175,654 198,105 201,861 202,843 204,895 206,160 207,775 209,804 212,876 215,252 37 Bonds 122,984 141,891 162,587 166,093 167,548 168,622 169,817 171,762 173,130 175,854 176,920 38 Stocks 34,262 33,763 35,518 35,768 35,295 36,273 36,343 36,013 36,674 37,022 38,332 39 Mortgages 91,552 96,848 106,167 106,654 107,385 108,417 109,198 110,023 111,123 112,120 113,102 40 Real estate 10,476 11,060 11,764 11,862 11,943 11,484 12,086 12,101 12,199 12,351 12,738 41 Policy loans 25,834 27,556 30,146 30,469 30,778 31,160 31,512 31,832 32,131 32,390 32,713 42 Other assets 18,502 21,051 23,733 23,095 23,019 23,160 23,497 23,515 24,199 23,915 24,073 Credit unions 43 Total assets/liabilities and capital 45,225 54,084 62,595 61,756 62,319 63,883 63,247 64,372 65,603 66,563 67,271 44 Federal 24,396 29,574 34,681 34,165 34,419 35,289 34,653 35,268 35,986 36,733 37,045 45 State 20,829 24,510 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 51,807 51,526 51,716 52,480 52,542 53,100 53,831 54,160 55,110 47 Federal 18,311 22,717 28,583 28,340 28,427 28,918 28,849 29,109 29,525 29,674 30,179 48 State 16,073 19,338 23,224 23,186 23,289 23,562 23,693 23,991 24,306 24,486 24,931 49 Savings 39,173 46,832 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 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 23,722 23,489 23,741 24,502 24,406 24,883 r25,386 25,655 25,811 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 DomesticN onfinancial Statistics • November 1979 1.39 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Fiscal Fiscal TTyyppee ooff aaccccoouunntt oorr ooppeerraattiioonn year year year 1978 1979 1979 1977 1978 1979 HI H2 HI July Aug. Sept. U.S. budget 1 Receipts1 357,762 401,997 465,940 210,650 206,275 246,574 33,268 39,353 47,295 2 Outlays i 402,725 '450,938 493,221 222,561 238,186 245,616 40,482 54,279 29,625 3 Surplus, or deficit (-) -44,963 r —48,940 -27,281 -11,912 -31,912 958 -7,214 -14,926 17,670 4 Trust funds 9,497 12,693 18,335 4,334 11,754 4,041 3,805 -4,673 16,039 5 Federal funds 2 -54,460 r —61,633 -45,616 -16,246 -43,666 -4,999 -3,408 -10,254 1,631 Off-budget entities surplus, or deficit (-) 6 Federal Financing Bank outlays -8,415 -10,661 --1133,,226611 -5,105 -5,082 -7,712 -809 -908 -1,383 7 Other 3 -264 355 832 -790 1,843 -447 -143 -169 -730 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (—) -53,642 ' — 59,246 -39,710 -17,806 -35,151 -7,201 -8,166 --1166,,000033 1155,,555577 Source of financing 9 Borrowing from the public 53,516 '-59,106 33,641 23,378 30,314 6,039 4,831 33,,226688 44,,224499 10 Cash and monetary assets (decrease, or increase (—))4 -2,247 '-3,023 -408 -5,098 3,381 -8,878 4,711 6,535 -16,562 11 Others 2,373 '3,163 6,477 -474 1,456 10,040 -1,376 6,200 -3,244 MEMO: 12 Treasury operating balance (level, end of period) 19,104 22,444 24,176 17,526 16,291 17,485 13,530 6,950 24,176 13 Federal Reserve Banks 15,740 16,647 6,489 11,614 4,196 3,290 2,765 3,542 6,489 14 Tax and loan accounts 3,364 5,797 17,687 5,912 12,095 14,195 10,765 3,408 17,687 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 tor "other assets." all associations in the United States. Data are based on monthly reports 2. Includes net undistributed income, which is accrued by most, but not of federally insured associations and annual reports of other associations. all, associations. Even when revised, data for current and preceding year are subject to 3. Excludes figures for loans in process, which are shown as a liability. further revision. 4. Includes securities of foreign governments and international organiza- Mutual savings banks: Estimates of National Association of Mutual tions and nonguaranteed issues of U.S. government agencies. Savings Banks for all savings banks in the United States. Data are re- 5. Excludes checking, club, and school accounts. ported on a gross-of-valuation-reserves basis. 6. Commitments outstanding (including loans in process) of banks in Life insurance companies: Estimates of the American Council of Life New York State as reported to the Savings Banks Association of the Insurance for all life insurance companies in the United States. Annual State of New York. figures are annual-statement asset values, with bonds carried on an 7. Direct and guaranteed obligations. Excludes federal agency issues amortized basis and stocks at year-end market value. Adjustments for not guaranteed, which are shown in this table under "business" securities. interest due and accrued and for differences between market and book 8. Issues of foreign governments and their subdivisions and bonds of the values are not made on each item separately but are included, in total, in International Bank for Reconstruction and Development. "other assets." 9. The NAMSB reports that, effective April 1979, balance sheet data Credit unions: Estimates by the National Credit Union Administration are not strictly comparable with previous months. This largely reflects: for a group of federal and state-chartered credit unions that account for (1) changes in FDIC reporting proceedures; and (2) reclassification of about 30 percent of credit union assets. Figures are preliminary and certain items. revised annually to incorporate recent benchmark data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.40 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year Fiscal Fiscal Fiscal SSoouurrccee oorr ttyyppee year year year 1978 1979 1979 11997777 11997788'' 11997799 HI H2 HI July Aug. Sept. RECEIPTS 357,762 401,997 465,940 210,650 206,275 246,574 33,268 39,353 47,295 2 Individual income taxes, net 157,626 180,988 217,841 90,336 98,854 111,603 17,086 17,215 23,341 3 Withheld 114444,,882200 116655,,221155 195,295 82,784 90,148 98,683 16,714 16,952 16,194 4 Presidential Election Campaign Fund 37 39 36 36 3 32 0 3 00 5 Nonwithheld 42,062 47,804 56,215 37,584 10,777 44,116 1,241 1,041 7,349 6 Refunds i 2299,,229933 32,070 33,705 30,068 2,075 31,228 869 781 201 Corporation income taxes 60,057 65,380 71,448 38,496 28,536 42,427 2,518 1,661 1100,,009966 8 Refunds 55,,116644 55,,442288 5,771 22,,778822 2,757 2,889 499 293 463 9 Social insurance taxes and contributions, net 110088,,668833 123,410 141,591 66,191 61,064 75,609 10,566 17,164 10,809 10 Payroll employment taxes and contributions 2 88,196 99,626 115,041 51,668 5511,,005522 5599,,229988 88,,885577 1133,,557777 99,,889933 11 Self-employment taxes and contributions 3 4,014 4,267 5,034 33,,889922 336699 44,,661166 0 0 441177 12 Unemployment insurance 11,312 13,850 15,387 7,800 6,727 8,623 1,204 2,847 154 5,162 5,668 6,130 2,831 2,917 3,072 504 740 344 14 Excise taxes 17,548 18,376 18,745 8,835 9,879 8,984 1,659 1,498 1,660 5,150 6,573 7,439 3,320 3,748 3,682 647 689 559 7,327 5,285 5,411 2,587 2,691 2,657 463 534 434 6,536 7,413 9,237 3,667 4,260 4,501 828 886 859 OUTLAYS 18 All types i 402,725 450,938 493,221 222,561 238,186 245,616 40,482 54,279 29,625 97,501 105,192 116,491 52,535 55,124 57,643 10,397 10,657 9,200 20 International affairs 4,813 6,083 5,419 3,347 2,060 3,538 -427 944 748 21 General science, space, and 4,677 4,721 5,620 2,395 2,383 22,,446611 443333 503 965 22 Energy 4,172 5,901 7,855 2,721 4,279 4,417 713 789 459 23 Natural resources and environment.. 10,000 11,167 12,346 4,690 6,020 5,672 1,154 1,394 1,234 5,532 7,618 6,410 2,435 4,967 3,020 -369 -215 -28 25 Commerce and housing credit -44 3,319 2,592 -443 3,292 60 173 59 -46 14,636 15,462 17,013 7,215 8,740 7,688 1,552 1,702 1,589 27 Community and regional development 6,286 11,263 9,735 5,500 55,,884444 44,,449999 770022 933 11,,000033 28 Education, training, employment, and social services 20,985 25,890 28,524 13,218 1144,,224477 1144,,446677 22,,447722 2,645 22,,334411 29 Health 38,785 43,676 49,614 21,147 23,830 24,860 4,108 4,632 4,109 30 Income security1 137,915 146,503 160,496 75,370 73,127 81,173 13,669 23,659 4,546 31 Veterans benefits and services 18,038 18,987 19,916 9,625 9,532 10,127 667 2,559 599 32 Administration of justice 3,600 3,786 4,138 1,945 1,989 2,096 336 397 281 33 General government 3,374 3,723 4,671 1,845 2,304 2,291 365 432 333 34 General-purpose fiscal assistance 9,499 9,377 8,234 4,678 4,610 3,890 1,800 53 131 35 Interest 6 38,009 44,040 52,634 22,280 24,036 26,934 3,491 4,240 3,818 36 Undistributed offsetting receipts 6.7.. -15,053 -15,772 -18,489 -7,945 -8,199 -8,999 -753 -1,103 -1,655 1. Effective June 1978, earned income credit payments in excess of an 6. Effective September 1976, "Interest" and "Undistributed Offsetting individual's tax liability, formerly treated as income tax refunds, are Receipts" reflect the accounting conversion for the interest on special classified as outlays retroactive to January 1976. issues for U.S. government accounts from an accrual basis to a cash basis. 2. Old-age, disability, and hospital insurance, and railroad retirement 7. Consists of interest received by trust funds, rents and royalties on accounts. the Outer Continental Shelf, and U.S. government contributions for 3. Old-age, disability, and hospital insurance. employee retirement. 4. Supplementary medical insurance premiums, federal employee retirement contributions, and Civil Service retirement and disability fund. SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the 5. Deposits of earnings by Federal Reserve Banks and other miscel- U.S. Government" and the Budget o the U.S. Government, Fiscal Year laneous receipts. 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • November 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 June July Aug. Sept. Oct. 1 Total gross public debt 576.6 653.5 718.9 789.2 804.9 807.5 813.1 826.5 826.8 By type 2 Interest-bearing debt 575.7 652.5 715.2 782.4 799.9 806.5 812.1 819.0 825.7 3 Marketable 363.2 421.3 459.9 487.5 499.3 507.0 509.2 506.7 515.0 4 Bills 157.5 164.0 161.1 161.7 159.9 159.9 160.5 161.4 161.7 5 Notes 167.1 216.7 251.8 265.8 272.1 278.3 277.6 274.2 280.8 38.6 40.6 47.0 60.0 67.4 68.8 71.1 71.1 72.5 7 Nonmarketable1 212.5 231.2 255.3 294.8 300.5 299.5 302.9 312.3 310.7 8 Convertible bonds2 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 24.1 24.2 24.6 24.6 24.4 10 Foreign issues 3 21.6 22.3 22.2 29.6 26.8 28.0 27.7 28.1 28.0 21.6 22.3 22.2 28.0 22.7 23.9 23.5 24.0 23.9 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 80.9 80.9 80.0 80.5 14 Government account series4 119.4 129.7 139.8 157.5 166.3 163.9 167.3 176.4 175.3 15 Non-interest-bearing debt 1.0 1.1 3.7 6.8 5.1 1.0 1.0 7.5 1.1 By holder 5 16 U.S. government agencies and trust funds 139.1 147.1 154.8 170.0 178.6 176.3 178.6 89.8 97.0 102.5 109.6 109.2 111.4 113.0 349.4 409.5 461.3 508.6 516.6 519.8 521.5 85.1 103.8 101.4 93.4 95.0 93.4 92.7 4.5 5.9 5.9 5.2 5.0 4.7 4.6 21 Insurance companies 9.5 12.7 15.1 15.0 14.5 14.5 14.6 20.2 27.7 22.7 20.6 24.0 21.2 20.7 n.a. n. a. 23 State and local governments 34.2 41.6 55.2 68.6 68.0 69.9 70.1 Individuals 67.3 72.0 76.7 8800..77 80.6 80.7 80.7 25 Other securities 24.0 28.8 28.6 30.0 31.8 32.0 32.3 66.5 78.1 109.6 137.8 119.5 122.2 124.4 27 Other miscellaneous investors7 38.0 38.9 46.1 57.4 78.3 81.1 81.5 1. Includes (not shown separately): Securities issued to the Rural 6. Consists of the investments of foreign balances and international Electrification Administration, depositary bonds, retirement plan bonds, accounts in the United States. Beginning with July 1974, the figurese xclude 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 of 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 11997777 11997788 1977 1978 July Aug. July Aug. All maturities 1 to 5 years 1 All holders 459,927 487,546 506,994 509,187 151,264 162,886 160,356 160,771 2 U.S. government agencies and trust funds 14,420 12,695 12,448 11,388 4,788 3,310 2,464 3,109 101,191 109,616 111,445 113,027 27,012 31,283 28,430 27,055 344,315 365,235 383,102 384,771 119,464 128,293 129,462 130,607 75,363 68,890 67,332 66,813 38,691 38,390 37,099 37,055 4,379 3,499 3,275 3,244 2,112 1,918 1,767 1,752 12,378 11,635 11,728 11,743 4,729 4,664 4,629 5,095 9,474 8,272 7,597 7,127 3,183 3,635 2,663 2,265 4,817 3,835 3,587 3,547 2,368 2,255 2,040 2,070 15,495 18,815 18,049 18,151 3,875 3,997 4,049 4,283 222,409 250,288 271,534 274,145 64,505 73,433 77,215 78,087 Total, within 1 year 5 to 10 years 12 All holders 230,691 228,516 244,203 245,699 45,328 50,400 47,556 45,510 13 U.S. government agencies and trust funds 1,906 1,488 2,318 1,416 2,129 1,989 1,765 872 56,702 52,801 58,608 61,392 10,404 14,809 12,435 12,246 172,084 174,227 183,277 182,891 32,795 33,601 33,355 32,392 29,477 20,608 20,604 20,232 6,162 7,490 7,103 6,951 1,400 817 800 799 584 496 453 444 2,398 1,838 1,924 1,865 3,204 2,899 2,805 2,478 5,770 4,048 4,230 4,150 307 369 331 324 2,236 1,414 1,395 1,334 143 89 75 68 7,917 8,194 6,270 5,952 1,283 1,588 1,659 1,719 122,885 137,309 148,054 148,559 21,112 20,671 20,930 20,408 Bills, within 1 year 10 to 20 years 23 All holders 161,081 161,747 159,938 160,489 12,906 19,800 26,341 26,270 24 U.S. government agencies and trust funds 32 2 * * 3,102 3,876 4,520 4,520 42,004 42,397 41,338 42,911 1,510 2,088 3,204 3,203 26 Private investors 119,035 119,348 118,600 117,578 8,295 13,836 18,617 18,548 11,996 5,707 5,030 4,663 456 956 1,162 1,062 484 150 126 136 137 143 139 133 1,187 753 389 506 1,245 1,460 1,453 1,365 4,329 1,792 1,632 1,831 133 86 231 225 806 262 217 201 54 60 60 59 6,092 5,524 3,362 2,977 890 1,420 1,968 2,070 94,152 105,161 107,763 107,264 5,380 9,711 13,604 13,634 Other, within 1 year Over 20 years 34 All holders 69,610 66,769 84,265 85,210 19,738 25,944 28,538 30,937 35 U.S. government agencies and trust funds 1,874 1,487 2,318 1,416 2,495 2,031 1,380 1,472 14,698 10,404 17,270 18,481 5,564 8,635 8,767 9,131 37 Private investors 53,039 54,879 64,677 65,313 11,679 15,278 18,391 20,334 15,482 14,901 15,575 15,569 578 1,446 1,364 1,513 916 667 674 662 146 126 117 116 1,211 1,084 1,535 1,359 802 774 915 941 1,441 2,256 2,598 2,319 81 135 142 162 42 Savings and loan associations 1,430 1,152 1,177 1,133 16 17 16 16 1,825 2,670 2,908 2,975 1,530 3,616 4,104 4,128 28,733 32,149 40,290 41,296 8,526 9,164 11,732 13,457 NOTE. Direct public issues only. Based on Treasury Survey of Owner- (1) 5,413 commercial banks, 461 mutual savings banks, and 724 insurance ship from Treasury Bulletin (U.S. Treasury Department). companies, each about 80 percent; (2) 431 nonfinancial corporations and Data complete for U.S. government agencies and trust funds and 484 savings and loan associations, each about 50 percent; and (3) 491 Federal Reserve Banks, but data for other groups include only holdings state and local governments, about 40 percent. of those institutions that report. The following figures show, for each "All others," a residual, includes holdings of all those not reporting category, the number and proportion reporting as of Aug. 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 DomesticN onfinancial Statistics • November 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 July Aug. Sept. July 18 July 25 Aug. 1 Aug. 8 Aug. 15 Aug. 22 1 U.S. government securities... 10,449 10,838 10,285 11,113 '12,259 13,489 9,799 12,763 10,841 12,534 12,290 11,946 By maturity 2 Bills 6,676 6,746 6,173 6,738 6,787 8,056 5,761 7,843 6,241 5,828 7,228 7,588 3 Other within 1 year 210 237 392 398 466 606 323 309 617 258 483 493 4 1-5 years 2,317 2,320 1,889 1,979 '2,328 2,425 1,868 2,291 2,242 2,195 1,848 1,724 5 5-10 years 1,019 1,148 965 907 '1,275 1,033 757 1,095 831 2,051 1,429 919 6 Over 10 years 229 388 866 1,092 '1,403 1,368 1,091 1,225 912 2,201 1,302 1,221 By type of customer 7 U.S. government securities dealers 1,360 1,267 1,135 1,086 1,480 1,720 961 1,041 1,501 1,353 1,300 1,689 8 U.S. government securities brokers 3,407 3,709 3,838 4,491 '4,690 5,580 3,943 5,298 3,724 4,849 4,606 4,516 9 Commercial banks 2,426 2,295 1,804 1,797 '1,638 1,836 1,459 2,259 1,686 1,790 1,565 1,548 10 All others i 3,257 3,568 3,508 3,740 '4,450 4,342 3,437 4,164 3,930 4,542 4,819 4,193 11 Federal agency securities.... 1,548 1,729 1,894 2,511 '2,348 3,230 2,384 2,663 2,717 2,222 2,411 2,009 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 July Aug. Sept. June 27 July 4 July 11 July 18 July 25 Aug. 1 Positions2 1111 UUUU....SSSS.... ggggoooovvvveeeerrrrnnnnmmmmeeeennnntttt sssseeeeccccuuuurrrriiiittttiiiieeeessss........ .... 7,592 5,172 2,656 '2,979 1,128 866 5,950 6,180 4,832 2,750 1,632 1,355 2222 BBBBiiiillllllllssss 6,290 4,772 2,452 3,634 1,306 2,476 6,035 5,937 5,051 3,347 2,703 2,336 3333 OOOOtttthhhheeeerrrr wwwwiiiitttthhhhiiiinnnn 1111 yyyyeeeeaaaarrrr 188 99 260 52 -23 -380 286 315 203 41 -40 -76 4444 1111----5555 yyyyeeeeaaaarrrrssss 515 60 -92 -513 -299 -1,085 -109 -409 -522 -579 -661 -111 5555 5555----11110000 yyyyeeeeaaaarrrrssss 402 92 40 46 312 146 165 150 129 95 -13 -150 6666 OOOOvvvveeeerrrr 11110000 yyyyeeeeaaaarrrrssss 198 149 -4 -240 -168 -291 -427 115 -29 -154 -357 -644 7777 FFFFeeeeddddeeeerrrraaaallll aaaaggggeeeennnnccccyyyy sssseeeeccccuuuurrrriiiittttiiiieeeessss................ 729 693 606 '1,983 1,975 2,164 1,915 2,262 2,054 1,999 1,976 1,686 Financing3 8888 AAAAllllllll ssssoooouuuurrrrcccceeeessss 8,715 9,877 10,204 16,217 16,173 18,057 14,821 15,814 16,431 15,679 16,711 16,269 CCCCoooommmmmmmmeeeerrrrcccciiiiaaaallll bbbbaaaannnnkkkkssss 9999 NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy 1,896 1,313 599 1,266 773 1,292 1,440 1,576 1,937 789 1,151 714 11110000 OOOOuuuuttttssssiiiiddddeeee NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy............ 1,660 1,987 2,174 2,324 2,562 3,517 2,152 1,968 2,523 2,309 2,332 2,318 11111111 CCCCoooorrrrppppoooorrrraaaattttiiiioooonnnnssss1111 1,479 2,423 2,370 3,434 3,979 3,918 2,930 2,886 3,273 3,100 3,814 3,860 11112222 AAAAllllllll ooootttthhhheeeerrrrssss 3,681 4,155 5,052 9,193 8,859 9,329 8,298 9,384 8,698 9,481 9,414 9,376 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 1979 Agency 1976 1977 1978 Apr. May 1 Federal and federally sponsored agencies1 103,848 112,472 137,063 140,999 143,265 145,556 146,429 149,612 2 Federal agencies 22,419 22,760 23,488 23,485 23,507 23,568 23,366 24,170 3 Defense Department2 1,113 983 868 859 839 822 807 796 4 Export-Import Bank3'4 8,574 8,671 8,711 8,499 8,326 8,322 8,107 8,806 5 Federal Housing Administrations 575 581 588 586 580 576 568 562 6 Government National Mortgage Association participation certificates6 4,120 3,743 3,141 3,141 3,141 3,099 3,099 3,039 7 Postal Service7 2,998 2,431 2,364 2,364 2,364 2,364 2,202 2,202 8 Tennessee Valley Authority 4,935 6,015 7,460 7,690 7,900 7,985 8,155 8,335 9 United States Railway Association7 104 336 356 346 357 400 428 430 10 Federally sponsored agencies1 81.429 89,712 113,575 117,514 119,758 121,988 123,063 125,442 11 Federal Home Loan Banks 16,811 18,345 27,563 28,447 28,265 28,121 28,577 28,758 12 Federal Home Loan Mortgage Corporation. 1,690 1,686 2,262 2,461 2,333 2,330 2,323 2,522 13 Federal National Mortgage Association .... 30,565 31,890 41,080 42,405 43,625 44,792 44,639 45,775 14 Federal Land Banks 17,127 19,118 20,360 19,275 19,275 18,389 18,389 18,389 15 Federal Intermediate Credit Banks 10,494 11,174 11,469 8,958 7,890 6,994 5,958 5,122 16 Banks for Cooperatives 4,330 4,434 4,843 3,852 3,351 2,473 1,483 785 17 Farm Credit Banks1 2,548 5,081 11,134 13,987 17,838 20,597 22,949 1 1 9 8 S O t t u h d e e r n t Loan Marketing Association8 410 2 51 2 5 915 2 980 2 1,030 2 1,050 1 1,095 2 1,140 2 MEMO: 20 Federal Financing Bank debt7-' 28,711 38,580 51,298 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 7,131 7,131 7,131 7,846 22 Postal Service7 2,748 2,181 2,114 2,114 2,114 2,114 1,952 1,952 23 Student Loan Marketing Association8 410 515 915 980 1,030 1,050 1,095 1,140 24 Tennessee Valley Authority 3,110 4,190 5,635 5,865 6,075 6,260 6,430 6,610 25 United States Railway Association7 104 336 356 346 357 400 428 430 Other lending10 26 Farmers Home Administration 10,750 16,095 23,825 25,160 25,985 26,890 28,050 29,200 27 Rural Electrification Administration. 1,415 2,647 4,604 4,735 4,962 5,122 5,253 5,497 28 Other 4,966 6,782 6,951 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 • November 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 Mar. Apr. May June July Aug. 1 All issues, new and refunding 1 35,313 46,769 48,607 4,648 3,512 3,032 4,578 3,265 3,134 Type of issue 2 General obligation 18,040 18,042 17,854 11,,006600 11,,225588 11,,113377 11,,552277 779933 728 3 Revenue 17,140 28,655 30,658 3,580 2,243 1,893 3,032 2,469 3,396 133 72 95 8 11 2 19 3 10 Type of issuer 6 State 7,054 6,354 6,632 436 298 205 642 223344 200 7 Special district and statutory authority 15,304 21,717 24,156 2,930 1,709 1,464 1,911 1,532 2,473 8 Municipalities, counties, townships, school districts 12,845 18,623 17,718 1,274 1,495 1,361 2,005 1,497 1,451 9 Issues for new capital, total 32,108 36,189 37,629 4,635 3,482 3,023 4,233 3,087 4,070 Use of proceeds 4,900 5,076 5,003 281 562 665 527 339922 555 2,586 2,951 3,460 204 134 125 278 141 103 9,594 8,119 9,026 1,134 508 590 981 881 813 6,566 8,274 10,494 2,036 1,499 582 1,332 1,180 1,704 483 4,676 3,526 315 182 399 321 253 406 7,979 7,093 6,120 665 597 662 794 240 489 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 1978 or use Feb. Mar. Apr.1 May Juner July 1 All issues 1 53,488 53,792 47,230 3,170 4,401 4,692 4,167 6,247 4,008 2 Bonds 42,380 42,015 36,872 2,257 3,729 4,113 3.575 5,356 3,027 Type of offering 3 Public. 26,453 24,072 19,815 ,336 1,904 2,984 1,999 4,171 2,247 4 Private placement 15,927 17,943 17,057 921 1,825 1,129 1.576 1,185 780 Industry group 5 Manufacturing 13,264 12,204 9,572 278 739 536 1,208 1,146 925 6 Commercial and miscellaneous 4,372 6,234 5,246 279 362 73 267 573 229 7 Transportation 4,387 1,996 2,007 266 245 307 205 423 375 8 Public utility 8,297 8,262 7,092 517 721 1,153 638 1,125 174 9 Communication 2,787 3,063 3,373 558 517 261 102 379 26 10 Real estate and financial 9,274 10,258 9,586 359 1,145 1,782 1,154 1,710 1,298 11 Stocks 11,108 11,777 10,358 913 672 579 592 891 981 Type 12 Preferred 2,803 3,916 2,832 201 231 155 174 278 392 13 Common 8,305 7,861 7,526 712 441 424 418 613 589 Industry group 14 Manufacturing 2,237 1,189 1,241 121 24 36 85 47 38 15 Commercial and miscellaneous 1,183 1,834 1,816 93 114 210 203 363 173 16 Transportation 24 456 263 55 49 3 17 Public utility 6,121 5,865 5,140 669 335 257 227 248 598 18 Communication 776 1,379 264 65 7 30 68 19 Real estate and financial 771 1,049 1,631 ' '29 79 "78" 21 200 103 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 Item 1977 1978 Mar. Apr. May June July Aug. Sept. INVESTMENT COMPANIES 1 1 Sales of own shares2 6,401 6,645 523 594 549 676 744 675 580 2 Redemptions of own shares3 6,027 7,231 646 761 715 667 706 832 784 357 -586 -123 -175 -166 9 38 -157 -204 4 Assets4 45,049 44,980 47,051 47,142 46,431 48,064 48,771 ''50,802 50,147 3,274 4,507 4,746 4,862 4,869 5,012 5,052 4,924 5,016 6 Other 41,775 40,473 42,305 42,280 41,562 43,052 43,719 r45,878 45,131 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 AAccccoouunntt 11997766 11997777 11997788 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 6 Capital consumption allowances 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 • November 1979 1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1977 1978 1979 AAccccoouunntt 11997755 11997766 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 1 Current assets 759.0 826.3 881.8 900.9 925.0 954.2 992.6 1,028.1 1,078.6 1,110.2 2 Cash 82.1 87.3 83.5 94.3 88.8 91.3 91.6 103.5 102.4 100.1 3 U.S. government securities 19.0 23.6 19.3 18.7 18.6 17.3 16.1 17.8 19.2 20.8 4 Notes and accounts receivable 272.1 293.3 326.9 325.0 337.4 356.0 376.4 381.9 405.3 418.8 5 Inventories 315.9 342.9 368.3 375.6 390.5 399.3 415.5 428.3 452.6 468.9 6 Other 69.9 79.2 83.8 87.3 89.6 90.3 92.9 96.5 99. 1 101.4 451.6 492.7 533.2 546.8 574.2 593.5 626.3 662.2 701.9 723.7 8 Notes and accounts payable 264.2 282.0 306.1 313.7 325.2 337.9 356.2 375.1 392.6 410.5 9 Other 187.4 210.6 227.1 233.1 249.0 255.6 270.0 287.1 309.2 313.1 10 Net working capital 307.4 333.6 348.6 354.1 350.7 360.7 366.3 365.9 376.7 386.5 11 MEMO: Current ratio* 1.681 1.677 1.654 1.648 1.611 1.608 1.585 1.552 1.537 1.534 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 Q2 Q3r Q42 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 44..4455 44..8811 44..9999 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 4.21 4.72 4.78 4.62 4.70 4.78 4.66 5.18 4.74 5.33 1 1 0 1 C C o o m m m me u r n c i i c a a l t i a o n n d other1 2 1 2 5 . . 9 4 5 3 2 1 5 8 . . 6 1 7 5 2 1 4 7 . . 7 0 6 7 2 1 4 8 . . 7 1 1 8 2 1 6 8 . . 0 9 9 0 2 1 7 8 . . 1 4 2 6 2 1 7 8 . . 7 7 3 5 2 2 0 8 . . 2 5 9 1 \j 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 Accounts receivable, gross 35.4 36.1 36.0 38.6 44.0 47.1 49.7 52.6 54.9 58.7 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 .8 .4 1.0 1.1 .9 1.3 1.8 1.3 | 123.8 24.6 8 All other 10.6 12.0 11.8 12.6 14.3 16.2 17.1 17.3 9 Total assets 73.2 79.6 81.6 89.2 104.3 112.9 115.3 122.4 128.9 135.8 LIABILITIES 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 4.6 4.9 4.5 5.4 6.2 6.6 6.8 8.1 6.7 8.8 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 Aug. 31, 1979 1979 1979 19791 June July Aug. June July Aug. June July Aug. 1 Total 68,588 1,361 1,234 251 16,788 15,453 15,606 15,427 14,219 15,355 2 Retail automotive (commercial vehicles) 15,467 -32 -25 101 1,116 1,118 1,239 1,148 1,143 1,138 3 Wholesale automotive 14,150 655 526 -583 5,919 5,804 5,633 5,264 5,278 66,,221166 4 Retail paper on business, industrial and 17,168 449 -31 282 1,075 1,171 1,194 626 1,202 912 6 5 L Fa o c a t n o s r e o d n c c o o m m m m e e r r c c i i a a l l a a c c c c o o u u n n t t s s r r e e c c e e iv iv a a b b l l e e 2 2 . . . . . } 6,703 -135 -91 97 6,097 5,004 5,195 6,232 5,095 5,098 15,100 424 855 354 2,581 2,356 2,345 2,157 1,501 1,991 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 • November 1979 1.55 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1979 Item 1976 1977 1978 Apr. May June July Aug. Sept. 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 75.4 72.3 73.7 74.3 80.0 75.5 2 Amount of loan (thousands of dollars) 35.9 40.5 45.9 54.9 51.4 52.5 52.7 56.9 53.9 3 Loan/price ratio (percent) 74.2 76.3 75.3 75.1 73.2 73.5 73.0 73.1 73.4 4 Maturity (years) 27.2 27.9 28.0 29.0 28.2 28.4 28.1 28.1 28.6 5 Fees and charges (percent of loan amount)2 1.44 1.33 1.39 1.75 1.59 1.53 1.63 1.60 1.67 6 Contract rate (percent per annum) 8.76 8.80 9.30 10.06 10.20 10.39 10.49 10.73 10.72 Yield (percent per annum) 7 FHLBB series3 8.99 99..0011 9.54 10.36 10.47 10.66 10.78 11.01 11.02 8 HUD series4 8.99 8.95 9.68 10.55 10.80 10.90 10.95 11.10 11.35 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series) 5 8.82 8.68 9.70 n.a. 1100..6611 1100..4499 10.46 10.58 11.37 10 GNMA securities6 8.17 8.04 8.98 9.79 9.89 9.78 9.77 9.91 10.31 FNMA auctions? 11 Government-underwritten loans 8.99 8.73 9.77 10.59 10.84 10.77 10.66 10.66 11.08 9.11 8.98 10.01 11.03 11.35 11.57 11.52 11.52 11.75 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings {end of period) 13 Total 32,904 34,370 43,311 47,028 47,757 48,206 48,539 48,909 49,173 14 FHA-insured 18,916 18,457 21,243 22,773 23,008 23,204 23,378 23,526 n.a. 15 VA-guaranteed 9,212 9,315 10,544 10,591 10,543 10,502 10,450 10,386 n.a. 4,776 6,597 11,524 13,664 14,206 14,500 14,710 14,997 15,203 Mortgage transactions (during period) 3,606 4,780 12,303 883 1,023 739 602 646 545 18 Sales 86 67 5 0 0 0 0 0 0 Mortgage commitments8 6,247 9,729 18,960 1,075 1,400 634 354 593 1,407 3,398 4,698 9,201 6,656 6,862 6,476 5,912 5,692 6,352 Auction of 4-month commitments to buy Government-underwritten loans 21 Offered9 4,929.8 7,974.1 12,978 11,,332222..77 426.3 219.9 133.2 162.3 1,421.1 22,,778877..22 4,846.2 6,747.2 638.5 185.0 99.9 69.6 82.7 599.9 Conventional loans 23 Offered® 2,595.7 55,,667755..22 9,933.0 666611..99 458.6 357.5 93.5 245.9 527.3 1,879.2 3,917.8 5,110.9 363.6 214.3 195.3 69.9 184.1 325.6 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings {end of period)10 25 Total 44,,226699 33,,227766 33,,006644 33,,337777 33,,331100 33,,333344 3,487 r3,549 3,729 26 FHA/VA 1,618 1,395 1,243 1,198 1,186 1,171 1,156 1,145 1,132 2,651 1,881 1,822 2,180 2,124 2,163 2,331 r2,404 2,597 Mortgage transactions (iduring period) 11,,117755 3,900 66,,552244 335588 560 444477 518 636 537 1,396 4,131 6,211 364 572 382 321 554 347 Mortgage commitments11 1,477 5,546 7,451 554400 665522 528 528 655 n.a. 31 Outstanding (end of period) 333 1,063 1,410 1,487 1,541 1,590 1,572 1,536 n.a. 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 Qi' Q2 1 AH 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 • November 1979 1.57 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change Millions of dollars 1979 Holder, and type of credit 1976 1977 1978 Mar. Apr. May June July Aug. Sept. Amounts outstanding (end of period) 1 Total 193,977 230,829 275,629 278,453 282,575 287,315 291,856 295,052 299,813 303,902 By major holder 2 Commercial banks.... 93,728 112,373 136,189 137,445 139,843 142,102 144,035 145,169 147,312 148,657 3 Finance companies 38,919 44,868 54,298 56,991 58,334 59,635 60,996 62,463 63,362 64,822 4 Credit unions. 31,169 37,605 45,939 46,301 46,322 46,832 47,478 47,772 48,631 49,214 5 Retailers2 19,260 23,490 24,876 22,929 23,097 23,421 23,672 23,713 24,114 24,446 6 Savings and loans 6,246 7,354 8,394 8,671 8,833 9,066 9,290 9,425 9,760 9,972 7 Gasoline companies... 2,830 2,963 3,240 3,292 3,383 3,537 3,704 3,872 4,048 4,244 8 Mutual savings banks.. 1,825 2,176 2,693 2,824 2,763 2,722 2,681 2,638 2,586 2,547 By major type of credit 9 Automobile 67,707 82,911 102,468 105,426 107,186 109,211 110,930 111,952 113,351 114,765 10 Commercial banks.. 39,621 49,577 60,564 61,742 62,866 63,891 64,480 64,826 65,389 65,813 11 Indirect paper 22,072 27,379 33,850 34,592 35,322 35,917 36,251 36,475 36,887 37,267 12 Direct loans 17,549 22,198 26,714 27,150 27,544 27,974 28,229 28,351 28,502 28,546 13 Credit unions 15,238 18,099 21,967 22,140 22,150 22,394 22,703 22,844 23,255 23,534 14 Finance companies.. 12,848 15,235 19,937 21,544 22,170 22,926 23,747 24,282 24,707 25,418 15 Revolving 17,189 3399,,227744 4477,,005511 4455,,224400 45,781 4466,,448899 4477,,445588 4477,,889944 4499,,227700 5500,,442222 16 Commercial banks.. 14,359 1188,,337744 2244,,443344 2244,,444422 24,767 2255,,005544 2255,,665522 2255,,992277 2266,,778822 2277,,444466 17 Retailers 1177,,993377 1199,,337777 1177,,550066 17,631 1177,,889988 1188,,110022 1188,,009955 1188,,444400 1188,,773322 18 Gasoline companies. 2,830 22,,996633 33,,224400 33,,229922 3,383 33,,553377 33,,770044 33,,887722 44,,004488 44,,224444 19 Mobile home 14,573 15,141 16,042 16,092 16,198 16,453 16,607 16,719 16,972 17,105 20 Commercial banks. 8,737 9,124 9,553 9,509 9,549 9,702 9,759 9,801 9,912 9,940 21 Finance companies. 3,263 3,077 3,152 3,148 3,159 3,177 3,191 3,212 3,231 3,258 22 Savings and loans.. 2,241 2,538 2,848 2,942 2,997 3,076 3,152 3,198 3,312 3,384 23 Credit unions 332 402 489 493 493 498 505 508 517 523 24 Other 94,508 93,503 110,068 111,695 113,410 115,162 116,861 118,487 120,220 121,610 25 Commercial banks... 31,011 35,298 41,638 41,752 42,661 43,455 44,144 44,615 45,229 45,458 26 Finance companies... 22,808 26,556 31,209 32,299 33,005 33,532 34,058 34,969 35,424 36,146 27 Credit unions 15,599 19,104 23,483 23,668 23,679 23,940 24,270 24,420 24,859 25,157 28 Retailers 19,260 5,553 5,499 5,423 5,466 5,523 5,570 5,618 5,674 5,714 29 Savings and loans 4,005 4,816 5,546 5,729 5,836 5,990 6,138 6,227 6,448 6,588 30 Mutual savings banks. 1,825 2,176 2,693 2,824 2,763 2,722 2,681 2,638 2,586 2,547 Net change (during period)3 31 Total 21,647 35,278 44,810 3,625 4,105 3,306 2,558 2,443 2,446 4,446 By major holder 32 Commercial banks 10,792 18,645 23,813 1,465 2,117 1,665 984 662 866 1,521 33 Finance companies 2,946 5,948 9,430 1,228 1,378 893 913 1,185 549 1,773 5,503 6,436 8,334 528 139 124 144 342 391 411 35 Retailers i 1,059 2,654 1,386 143 306 283 288 180 332 443 36 Savings and loans 1,085 1,111 1,041 173 158 280 240 120 253 207 37 Gasoline companies 124 132 276 20 73 96 39 2 116 127 138 352 530 68 -66 -35 -50 -48 -61 -36 By major type of credit 39 Automobile 10,465 1155,,220044 1199,,555577 1,486 1,387 1,225 690 616 594 1,823 40 Commercial banks 6,334 9,956 10,987 617 740 633 123 72 172 762 41 Indirect paper 2,742 5,307 6,471 290 482 389 87 51 188 542 42 Direct loans 3,592 4,649 4,516 327 258 244 36 21 -16 220 43 Credit unions 2,497 2,861 3,868 245 64 60 45 183 177 218 44 Finance companies 1,634 2,387 4,702 624 583 532 522 361 245 843 2,170 6,248 7,776 742 918 749 796 429 787 1,057 22,,004466 4,015 6,060 588 605 418 494 303 365 546 47 Retailers 2,101 1,440 134 240 235 263 124 306 384 124 132 276 20 73 96 39 2 116 127 49 Mobile home 140 565 897 108 82 234 102 72 182 89 50 Commercial banks 70 387 426 31 21 125 12 17 59 10 51 Finance companies -182 -189 74 11 6 13 14 11 13 17 192 297 310 59 56 94 74 41 106 57 53 Credit unions 60 70 87 7 -1 2 2 3 4 5 54 Other 8,872 13,261 16,580 1,289 1,718 1,098 970 1,326 883 1,477 55 Commercial banks 2,342 4,287 6,340 229 751 489 355 270 270 203 56 Finance companies 1,494 3,750 4,654 593 789 348 377 813 291 913 57 Credit unions 2,946 3,505 4,379 276 76 62 97 156 210 188 58 Retailers 1,059 553 -54 9 66 48 25 56 26 59 59 Savings and loans 893 814 731 114 102 186 166 79 147 150 60 Mutual savings banks 138 352 530 68 -66 -35 -50 -48 -61 -36 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 Holder, and type of credit 1976 1977 1978 Mar. Apr. May June July Aug. Extensions 2 1 Total 211,028 254,071 298,351 26,533 27,009 27,901 26,139 26,848 27,583 28,634 By major holder 2 Commercial banks 97,397 117,896 142,720 12,412 13,111 13,400 12,278 12,292 12,700 13,172 3 Finance companies 36,129 41,989 50,505 4,958 5,239 5,186 4,641 5,353 5,133 5,489 4 Credit unions 29,259 34,028 40,023 3,250 2,753 3,124 2,986 3,282 3,361 3,363 5 Retailers i 29,447 39,133 41,619 3,611 3,742 3,721 3,853 3,687 3,921 4,082 6 Savings and loans 3,898 4,485 5,050 583 559 723 682 592 728 678 7 Gasoline companies 13,387 14,617 16,125 1,493 1,505 1,613 1,589 1,525 1,640 1,734 8 Mutual savings banks.., 1,511 1,923 2,309 226 100 134 110 117 100 116 By major type of credit 9 Automobile 63,743 75,641 88,987 7,794 7,999 8,260 7,178 7,447 7,667 8,430 10 Commercial banks... 37,886 46,363 53,028 4,424 4,707 4,680 3,952 3,936 4,085 4,544 11 Indirect paper 20,576 25,149 29,336 2,449 2,635 2,684 2,146 2,151 2,276 2,569 12 Direct loans 17,310 21,214 23,692 1,975 2,072 1,996 1,806 1,785 1,809 1,975 13 Credit unions........ 14,688 16,616 19,486 1,587 1,415 1,566 1,485 1,611 1,661 1,655 14 Finance companie's... 11,169 12,662 16,473 1,783 1,877 2,014 1,741 1,900 1,921 2,231 15 Revolving 43,934 8866,,775566 110044,,558877 9,714 9,722 10,039 10,136 9,856 10,371 10,699 16 Commercial banks.. 30,547 3388,,225566 5511,,553311 5,024 4,923 5,154 5,166 5,078 5,280 5,398 17 Retailers 3333,,888833 3366,,993311 3,197 3,294 3,272 3,381 3,253 3,451 3,567 18 Gasoline companies. 13,387 1144,,661177 1166,,112255 1,493 1,505 1,613 1,589 1,525 1,640 1,734 19 Mobile home 4,859 5,425 6,067 518 510 668 547 519 655 531 20 Commercial banks. 3,064 3,466 3,704 296 304 411 304 297 362 294 21 Finance companies. 702 643 886 63 59 58 59 71 67 69 22 Savings and loans.. 929 1,120 1,239 139 134 182 167 133 206 148 23 Credit unions 164 196 238 20 13 17 17 18 20 20 24 Other 98,492 86,249 98,710 8,507 8,778 8,934 8,278 9,026 8,890 8,974 25 Commercial banks 25,900 29,811 34,457 2,668 3,177 3,155 2,856 2,981 2,973 2,936 26 Finance companies 24,258 28,684 33,146 3,112 3,303 3,114 2,841 3,382 3,145 3,189 27 Credit unions 14,407 17,216 20,299 1,643 1,325 1,541 1,484 1,653 1,680 1,688 28 Retailers 29,447 5,250 4,688 414 448 449 472 434 470 515 29 Savings and loans 2,969 3,365 3,811 444 425 541 515 459 522 530 30 Mutual savings banks. 1,511 1,923 2,309 226 100 134 110 117 100 116 Liquidations2 31 Total. 189,381 218,793 253,541 22,908 22,904 24,595 23,581 24,405 25,137 24,188 By major holder 32 Commercial banks 86,605 99,251 118,907 10,947 10,994 11,735 11,294 11,630 11,834 11,651 33 Finance companies 33,183 36,041 41,075 3,730 3,861 4,293 3,728 4,168 4,584 3,716 34 Credit unions 23,756 27,592 31,689 2,722 2,614 3,000 2,842 2,940 2,970 2,952 35 Retailers i 28,388 36,479 40,233 3,468 3,436 3,438 3,565 3,507 3,589 3,639 36 Savings and loans 2,813 3,374 4,009 410 401 443 442 472 475 471 37 Gasoline companies 13,263 14,485 15,849 1,473 1,432 1,517 1,550 1,523 1,524 1,607 38 Mutual savings banks.. 1,373 1,571 1,779 158 166 169 160 165 161 152 By major type of credit 39 Automobile 53,278 60,437 69,430 6,308 6,612 7,035 6,488 6,831 7,073 6,607 40 Commercial banks... 31,552 36,407 42,041 3,807 3,967 4,047 3,829 3,864 3,913 3,782 41 Indirect paper 17,834 19,842 22,865 2,159 2,153 2,295 2,059 2,100 2,088 2,027 42 Direct loans 13,718 16,565 19,176 1,648 1,814 1,752 1,770 1,764 1,825 1,755 43 Credit unions 12,191 13,755 15,618 1,342 1,351 1,506 1,440 1,428 1,484 1,437 44 Finance companies... 9,535 10,275 11,771 1,159 1,294 1,482 1,219 1,539 1,676 1,388 45 Revolving 41,764 80,508 96,811 8,972 8,804 9,290 9,340 9,427 9,584 9,642 46 Commercial banks.. 28,501 34,241 45,471 4,436 4,318 4,736 4,672 4,775 4,915 4,852 47 Retailers 31,782 35,491 3,063 3,054 3,037 3,118 3,129 3,145 3,183 48 Gasoline companies. 13,263 14,485 15,849 1,473 1,432 1,517 1,550 1,523 1,524 1,607 49 Mobile home 4,719 4,860 5,170 410 428 434 445 447 473 442 50 Commercial banks. 2,994 3,079 3,278 265 283 286 292 280 303 284 51 Finance companies. 884 832 812 52 53 45 45 60 54 52 52 Savings and loans.. 737 823 929 80 78 88 93 92 100 91 53 Credit unions 104 126 151 13 14 15 15 15 16 15 54 Other 89,620 72,988 82,130 7,218 7,060 7,836 7,308 7,700 8,007 7,497 55 Commercial banks 23,558 25,524 28,117 2,439 2,426 2,666 2,501 2,711 2,703 2,733 56 Finance companies 22,764 24,934 28,492 2,519 2,514 2,766 2,464 2,569 2,854 2,276 57 Credit unions 11,461 13,711 15,920 1,367 1,249 1,479 1,387 1,497 1,470 1,500 58 Retailers 28,388 4,697 4,742 405 382 401 447 378 444 456 59 Savings and loans 2,076 2,551 3,080 330 323 355 349 380 375 380 60 Mutual savings banks. 1,373 1,571 1,779 158 166 169 160 165 161 152 i Includes auto dealers and excludes 30-day charge credit held by 2 Monthly figures are seasonally adjusted, travei and entertainment companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • November 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 Total funds raised 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 3 U.S. government 8.3 11.8 85.4 69.0 56.8 53.7 79.4 58.7 46.3 67.2 61.4 46.0 4 Treasury securities 7.9 12.0 85.8 69.1 57.6 55.1 79.3 59.0 46.9 68.4 62.4 47.9 5 Agency issues and mortgages .4 -.2 -.4 -.1 -.9 -1.4 .1 -.3 -.6 -1.2 -.9 -1.9 6 All other nonfinancial sectors 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 Corporate equities 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 9 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 10 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 11 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 15 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 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 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 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 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 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 -.1 6.3 9.4 27.1 35 Open market paper .9 7.3 .3 1.9 2.4 6.6 1.5 2.4 2.7 2.2 3.6 9.6 36 U.S. government loans 1.7 1.6 2.8 3.3 3.0 3.9 2.9 3.6 3.1 2.9 3.6 4.2 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 40 Mortgage pool securities 3.6 5.8 10.3 15.7 20.5 18.3 14.2 17.2 17.9 23.1 16.6 20.1 41 Loans from U.S. 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 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 -1.2 -1.3 2.3 2.1 3.1 .9 1.4 2.8 3.1 3.0 2.1 -.3 47 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 3.6 5.8 10.3 15.7 20.5 18.3 14.2 17.2 17.9 23.1 16.6 20.1 24.9 16.2 -.8 5.5 27.7 40.0 1.7 9.3 23.2 32.2 42.2 37.8 53 1.2 1.2 1.2 2.3 1.1 1.3 2.4 2.1 .8 1.5 1.5 1.1 54 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 . l 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 57 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 _ 7 _ # i — 1 0 _ 9 — 1.0 —2 4 4 — 6 1 3 5 —1 1 .c J 62 Other corporate equities 10.4 4.8 lo!8 12^9 4.9 4.1 15^8 9.9 2^6 1.2 !i 9.4 63 238.8 226.4 212.8 284.1 388.5 478.0 275.4 292.8 342.2 434.9 465.0 491.0 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 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 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 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 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 7 U.S. government 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 4455..77 4477..22 4455..88 3399..55 47.5 7711..44 52.5 26.6 37.9 57.1 61.5 81.3 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 d eposits 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 114433..99 117711..44 197.0 223.2 176.8 166.1 185.2 208.9 210.5 235.9 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 • November 1979 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1979 Measure 1976 1977 1978 Mar. Apr. May June July' Aug.r Sept.r Oct. 1 Industrial production1 130.5 138.2 146.1 153.0 150.8 152.4 152.6 152.8 151.6 152.3 152.5 Market groupings 2 Products, total 129.7 137.9 144.8 150.8 148.4 150.3 150.2 149.7 148.7 149.7 149.7 3 Final, total 127.6 135.9 142.2 148.2 145.4 147.8 147.6 147.1 145.5 146.9 146.8 4 Consumer goods 137.1 145.3 149.1 152.9 149.1 152.0 151.8 150.8 148.3 149.8 150.3 5 Equipment 114.6 123.0 132.8 141.7 140.4 141.9 141.9 142.1 141.6 142.9 142.0 6 Intermediate 137.2 145.1 154.1 160.4 159.7 159.5 159.5 159.4 160.3 160.3 160.5 7 Materials 131.7 138.6 148.3 156.3 154.5 155.7 156.5 157.6 156.3 156.4 156.8 Industry groupings 8 Manufacturing 130.3 138.4 146.8 154.5 151.6 153.8 153.9 154.1 152.4 153.4 153.4 Capacity utilization (percent)1 •2 9 Manufacturing 79.5 81.9 84.4 87.1 85.3 86.3 86.2 86.1 84.9 85.2 85.0 10 Industrial materials industries 81.1 82.7 85.6 88.3 86.9 87.4 87.5 87.9 86.9 86.7 86.8 11 Construction contracts 3 190.2 160.5 174.3 186.0 202.0 178.0 177.0 165.0 164.0 185.0 n.a. 12 Nonagricultural employment, total4 120.7 125.3 131.4 135.3 135.3 135.9 136.2 136.3 136.4 136.5 137.0 13 Goods-producing, total 100.2 104.5 109.8 114.2 114.0 114.3 114.4 114.7 114.1 114.1 114.2 14 Manufacturing, total 97.7 101.2 105.3 108.4 108.3 108.3 108.3 108.4 107.8 107.7 107.8 15 Manufacturing, production-worker 95.3 98.8 102.8 105.9 105.8 105.6 105.5 105.5 104.5 104.5 104.7 16 Service-producing 131.9 136.7 143.2 146.9 147.0 147.7 148.1 148.2 148.6 148.9 149.5 17 Personal income, totals 220.5 244.4 274.1 298.8 300.1 301.9 304.0 308.0 310.4 312.0 n.a. 18 Wages and salary disbursements 208.2 230.2 258.1 281.2 282.1 283.2 285.5 287.5 289.0 291.5 n.a. 19 Manufacturing 177.0 198.3 222.4 244.7 244.1 244.8 245.9 247.5 246.2 248.2 nn..aa.. 20 Disposable personal income 176.8 194.8 217.7 239.1 244.4 21 Retail sales 6 c207.4 c229.8 c253.8 275.3 272.7 274.8 274.4 276.5 285.8 293.2 288.3 Prices7 22 Consumer 170.5 181.5 195.4 209.1 211.5 214.1 216.6 218.9 221.1 223.4 n.a. 23 Producer finished goods 170.3 180.6 194.6 209.1 211.4 r212.7 r213.7 215.8 217.3 220.4 223.7 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 UTILIZATION1 Seasonally adjusted 1978 1979 1978 1979 1978 1979 SSeerriieess Q4 Q1 Q2 Q3r Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3r Output (1967= 100) Capacity (percent of 1967 output) Utilization rate (percent) 11 MMaannuuffaaccttuurriinngg 151.7 153.4 153.1 153.3 175.6 176.9 178.2 179.5 86.4 86.7 85.9 85.4 22 PPrriimmaarryy pprroocceessssiinngg 162.2 162.1 161.9 163.6 181.2 182.7 184.2 185.7 89.5 88.7 87.9 88.1 146.1 148.7 148.5 147.9 172.7 173.8 175.0 176.2 84.6 85.6 84.8 83.9 33 AAddvvaanncceedd pprroocceessssiinngg 154.6 155.5 155.6 156.8 175.4 176.8 178.1 179.8 88.2 88.0 87.3 87.2 44 MMaatteerriiaallss 157.3 158.4 157.7 158.5 180.1 181.5 183.0 184.6 87.4 87.3 86.2 85.9 6655 DDuuMMrraaeebbttaalleell ggmmooaaoottddeerrss iiaallss 132.2 124.7 124.3 127.2 139.6 139.8 140.3 140.8 94.7 89.1 88.5 90.4 77 NNoonndduurraabbllee ggooooddss 170.3 172.2 173.4 175.7 190.2 191.9 193.7 195.7 89.6 89.7 89.5 89.8 177.1 179.1 181.3 184.3 197.9 199.6 201.5 203.8 89.5 89.7 89.9 90.4 99 TTeexxttiillee 119.5 118.2 119.6 121.7 136.6 136.9 137.3 137.7 87.5 86.3 87.1 88.4 1100 PPaappeerr 138.1 136.9 140.7 146.9 147.8 148.7 149.9 151.0 93.4 92.0 93.9 97.3 1111 CChheemmiiccaall 218.0 222.7 224.8 226.8 244.6 247.4 250.6 253.8 89.1 90.0 89.7 89.3 1122 EEnneerrggyy 128.9 127.9 128.1 129.1 145.7 146.7 147.5 148.3 88.5 87.2 86.9 87.0 1. 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 CCaatteeggoorryy 11997766 11997777 11997788 Apr. May June July Aug. Sept. Oct. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 156,048 158,559 161,058 163,008 163,260 163,469 163,685 163,891 164,106 164,460 2 Labor force (including Armed Forces)1 96,917 99,534 102,537 104,193 104,325 104,604 105,141 105,139 105,590 105,567 3 Civilian labor force 94,773 97,401 100,420 102,111 102,247 102,528 103,059 103,049 103,498 103,474 Employment 4 Nonagricultural industries2 84,188 87,302 91,031 92,987 93,134 93,494 93,949 93,578 94,113 94,005 5 Agriculture 3,297 3,244 3,342 3,186 3,184 3,260 3,262 3,322 3,400 3,288 Unemployment 6 Number 7,288 66,,885555 6,047 5,937 5,929 5,774 5,848 6,149 5,985 6,182 7 Rate (percent of civilian labor force) 7.7 77..00 66..00 5.8 5.8 5.6 5.7 6.0 5.8 6.0 8 Not in labor force 59,130 59,025 58,521 58,815 58,935 59,865 58,545 58,752 58,515 58,901 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 79,382 82,423 86,446 89,036 89,398 89,626 89,713 89,762 89,845 90,151 10 Manufacturing 18,997 19,682 20,476 21,066 21,059 21,063 21,079 20,957 20,954 20,958 11 Mining 779 813 851 940 944 949 956 968 972 972 12 Contract construction 3,576 3,851 4,271 4,559 4,648 4,662 4,688 4,674 4,665 4,693 13 Transportation and public utilities... 4,582 4,713 4,927 5,024 5,130 5,190 5,169 5,194 5,181 5,229 17,755 18,516 19,499 20,088 20,129 20,116 20,122 20,126 20,149 20,281 4,271 4,467 4,727 4,915 4,936 4,958 4,972 5,003 4,995 5,025 14,551 15,303 16,220 16,880 16,954 17,051 17,092 17,141 17,220 17,290 14,871 15,079 15,476 15,564 15,598 15,637 15,635 15,699 15,709 15,703 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 • November 1979 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data are seasonally adjusted. 1967 1978 1979 Grouping 1978 por- avertion age Aug. Sept. Oct. Feb. Mar. Apr. May June July Aug. Sept.f Oct.e Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 146.1 148.0 148.6 149.7 152.0 153.0 150.8 152.4 152.6 152.8 151.6 152.3 152.5 2 Products 60.71 144.8 146.6 146.9 147.5 149.9 150.8 148.4 150.3 150.2 149.7 148.7 149.7 149.7 3 Final products 47.82 142.2 144.2 144.5 145.1 146.8 148.2 145.4 147.8 147.6 147.1 145.5 146.9 146.8 4 Consumer goods 27.68 149.1 150.6 150.8 151.2 151.5 152.9 149.1 152.0 151.8 150.8 148.3 149.8 150.3 5 Equipment 20.14 132.8 135.3 135.9 136.6 140.4 141.7 140.4 141.9 141.9 142.1 141.6 142.9 142.0 6 Intermediate products 12.89 154.1 155.6 155.6 156.4 161.4 160.4 159.7 159.5 159.5 159.4 160.3 160.3 160.5 7 Materials 39.29 148.3 150.2 151.2 153.2 155.2 156.3 154.5 155.7 156.5 157.6 156.3 156.4 156.8 Consumer goods 8 Durable consumer goods 7.89 159.2 161.5 160.5 162.6 161.1 163.6 151.6 160. 5 158.6 157.2 147.7 152.3 152.8 9 Automotive products 2.83 179.9 183.5 179.5 187.6 179.3 186.8 163.0 182.7 175.9 170.3 147.6 158.3 159.8 10 Autos and utility vehicles 2.03 172.5 174.9 170.0 181.0 170.3 178.8 147.4 176.3 167.4 155.6 125.1 139.8 141.9 11 Autos 1.90 148.6 150.2 144.2 154.7 144.9 153.8 128.6 153.1 148.0 141.8 118.5 128.0 129.0 12 Auto parts and allied goods 80 198.5 205.5 203.7 204.3 202.2 207.2 202.7 199.0 197.5 207.8 204.8 205.2 205.3 13 Home goods 5.06 147.7 149.2 149.9 148.6 150.9 150.6 145.2 148.1 148.8 149.8 147.7 148.9 148.8 14 Appliances, A/C, and TV 1.40 133.3 132.4 136.2 132.3 129.8 128.4 115.6 128.4 129.3 129.7 121.2 128.7 128.7 15 Appliances and TV 1.33 135.4 133.1 137.5 132.9 131.4 130.3 116.5 130.2 131.2 131.6 124.1 131.4 16 Carpeting and furniture 1.07 164.2 167.1 167.9 165.3 171.8 173.5 170.7 170.2 170.6 171.9 171.7 171.0 17 Miscellaneous home goods 2.59 148.6 150.9 149.9 150.5 153.7 153.2 150.8 149.6 150.5 151.6 152.2 150.8 151.2 18 Nondurable consumer goods 19.79 145.1 146.3 147.0 146.6 147.7 148.6 148.0 148.7 149.1 148.2 148.6 148.8 149.3 19 Clothing 4.29 131.1 133 3 135.0 132.6 130.7 130.9 127.7 128.6 130.7 126.9 128.0 20 Consumer staples 15.50 148.9 149.9 150.3 150.5 152.4 153.6 153.7 154.2 154.2 154.1 154.3 154.2 154.6 21 Consumer foods and tobacco 8.33 140.6 141.9 141.4 141.4 142.4 145.1 145.2 145.7 146.2 147.0 145.5 145.0 22 Nonfood staples 7.17 158.5 159.2 160.6 161.1 164.0 163.4 163.5 164.1 163.5 162.4 164.6 164.8 165.1 23 Consumer chemical products 2,63 192.7 194.1 196.1 198.3 203.1 202.8 201.6 205.2 205.9 206.1 209.2 209.2 24 Consumer paper products 1.92 118.4 118.4 119.8 118.0 122.7 121.4 120.9 121.3 121.1 119.9 121.2 121.2 25 Consumer energy products 2.62 153.6 154.0 155.0 155.3 155.2 154.7 156.4 154.3 152.0 149.8 151.6 152.3 26 Residential utilities 1.45 162.1 161.7 162.2 163.0 167.7 167.9 169.1 167.8 162.3 158.5 Equipment 27 Business 12.63 160.3 163.4 163.8 164.8 169.0 170.8 168.7 171.4 171.5 171.4 171.1 172.8 170.6 28 Industrial 6.77 145.8 148.0 147.6 148.1 152.5 152.8 150.4 151.8 152.0 151.3 151.7 152.6 150.7 29 Building and mining 1.44 207.3 209.0 208.4 208.8 207.9 205.2 204.2 203.7 205.3 207.4 210.6 211.2 199.9 30 Manufacturing 3.85 121.2 123.2 122.8 123.4 129.1 130.3 128.0 130.1 130.1 130.3 131.2 130.3 130.7 31 Power 1.47 149.4 153.3 153.0 153.0 159.1 160.2 156.0 157.7 156.8 151.0 147.7 153.5 154.9 32 Commercial transit, farm 5.86 177.2 181.2 182.5 184.1 188.1 191.6 189.9 193.9 194.0 194.6 193.6 196.1 193.5 33 Commercial 3.26 212.0 215.3 217.6 218.2 221.2 224.4 223.0 224.9 226.4 227.0 229.5 231.1 232.1 34 Transit 1.93 133.8 139.2 139.5 143.3 146.6 150.5 148.8 156.7 155.3 155.2 148.7 154.5 154.9 35 Farm 67 132.8 136.0 135.7 135.5 146.9 150.0 147.7 150.8 148.1 151.0 148.3 145.9 36 Defense and space 7.51 86.5 87.9 89.0 89.3 92.4 92.9 92.9 92.5 92.3 92.8 92.0 92.8 94.0 Intermediate products 37 Construction supplies 6.42 151.7 153.8 153.5 154.5 159.3 157.1 156.0 156.4 156.3 156.4 156.8 156.5 156.5 38 Business supplies 6.47 156.5 157.4 157.7 158.4 163.6 163.8 163.2 162.5 162.6 162.4 163.8 164.0 39 Commercial energy products 1.14 168.2 169.5 170.2 170.0 173.7 173.5 174.6 172.6 169.4 167.8 168.2 166.7 Materials 40 Durable goods materials 20.35 149.0 151.9 153.4 155.5 158.0 159.2 155.7 157.9 159.5 160.7 157.5 157.4 157.7 41 Durable consumer parts 4.58 140.8 142.1 145.1 147.0 146.0 145.8 136.9 142.5 141.8 138.5 129.3 131.8 132.1 42 Equipment parts 5.44 166.5 168.8 170.7 172.9 184.4 186.8 187.0 188.0 191.0 192.1 190.1 190.7 191.5 43 Durable materials n.e.c 10.34 143.3 147.3 148.0 150.1 149.4 150.6 147.7 149.0 150.8 154.0 152.8 151.1 151.3 44 Basic metal materials 5.57 121.2 126.5 127.0 129.3 124.1 126.7 123.2 122.9 126.1 130.5 128.1 125.4 45 Nondurable goods materials 10.47 165.6 165.3 167.8 168.8 172.4 173.1 173.0 173.8 173.4 174.6 175.8 176.6 176.9 46 Textile, paper, and chemical materials 7.62 171.8 170.7 174.6 175.3 179.6 180.1 180.7 181.5 181.7 182.8 184.4 185.6 186.1 47 Textile materials 1.85 116.9 115.6 116.8 119.7 117.4 119.0 117.0 118.8 122.9 122.2 120.9 122.0 48 Paper materials 1.62 137.0 130.0 137.7 137.3 137.4 139.9 140.8 140.1 141.1 146.2 146.7 147.8 49 Chemical materials 4.15 210.0 211.2 214.9 214.9 223.9 223.0 224.7 225.7 223.9 224.1 227.5 228.7 50 Containers, nondurable 1.70 159.8 162.6 160.7 163.9 165.8 167.3 162.0 163.3 159.2 163.1 162.9 163.2 51 Nondurable materials n.e.c 1.14 132.7 133.7 132.5 133.2 134.1 135.6 138.2 138.4 139.0 137.5 137.6 137.0 52 Energy materials 8.48 125.3 127.5 125.6 128.6 127.1 128.7 128.4 127.7 128.3 129.1 129.3 128.9 129.9 53 Primary energy 4.65 112.6 115.6 111.5 116.7 110.6 114.6 113.0 111.7 112.4 112.8 114.0 113.5 54 Converted fuel materials 3.82 140.8 141.9 142.7 143.0 147.2 145.9 147.1 147.2 147.6 148.8 147.8 147.7 Supplementary groups 55 Home goods and clothing 9.35 140.0 141.9 143.0 141.2 141.6 141.6 137.2 139.1 140.5 139.3 138.7 139.9 140.2 56 Energy, total 12.23 135.4 137.1 136.0 138.2 137.5 138.4 138.7 137.6 137.2 137.1 137.7 137.4 138.3 57 Products 3.76 158.0 158.7 159.6 159.8 160.8 160.3 161.9 159.9 157.3 155.2 156.6 156.7 58 Materials 8.48 125.3 127.5 125.6 128.6 127.1 128.7 128.4 127.7 128.3 129.1 129.3 128.9 129.9 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 11996677 1978 1979 GGrroouuppiinngg SSIICC pprroo-- 11997788 ccooddee ppoorr-- aavveerr-ttiioonn aaggee PP Aug. Sept. Oct. Feb. Mar. Apr. May June July? Aug. Sept.? Oct.® Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities . 12.05 141.7 143.2 142.6 144.6 143.0 143.5 143.8 143.4 143.0 143.7 145.0 145.2 146.3 2 Mining 6.36 124.0 126.2 124.4 127.9 120.9 122.3 122.7 122.8 123.9 124.7 127.1 126.3 127.6 3 Utilities 5.69 161.4 162.2 163.0 163.2 167.7 167.1 167.4 166.5 164.2 164.8 165.1 166.4 167.2 4 Electric 3.88 182.2 183.3 184.5 184.7 189.9 188.8 189.0 186.4 182.4 182.2 182.7 5 Manufacturing. 87.95 146.8 148.6 149.6 150.7 153.3 154.5 151.6 153.8 153.9 154.1 152.4 153.4 153.4 6 Nondurable. , 35.97 156.9 158.4 159.3 159.5 162.0 163.0 161.7 162.8 163.0 164.1 164.4 164.3 164.8 7 Durable 51.98 139.7 141.8 142.9 144.6 147.2 148.6 144.6 147.6 147.6 147.2 144.2 145.8 145.5 Mining 8 Metal 10 .51 121.0 118.0 115.6 122.1 125.3 126.9 128.9 123.1 123.2 128.6 126.5 122.9 9 Coal 11, 12 .69 114.7 125.9 114.0 141.9 104.5 124.0 130.1 133.4 137.5 137.1 144.1 142.6 146.7 10 Oil and gas extraction 13 4.40 124.6 126.2 125.4 125.5 120.4 119.3 118.6 118.6 119.6 120.4 122.6 122.1 123.2 11 Stone and earth minerals., 14 .75 131.2 132.1 133.7 133.6 135.7 135.6 135.3 137.8 137.3 136.4 138.3 137.9 Nondurable manufacturers 12 Foods 20 8.75 142.7 143.9 143.7 143.2 145.5 147.6 147.0 149.2 149.5 149.4 148.3 148.2 13 Tobacco products 21 .67 118.3 118.5 120.3 119.0 116.2 123.3 120.0 120.2 118.3 118.9 107.5 14 Textile mill products 22 2.68 137.5 137.1 138.6 139.6 139.9 142.3 141.2 141.5 114.6 143.0 143.3 145.1 15 Apparel products 23 3 31 134.2 137.7 139.6 136.8 133.5 136.5 130.8 128.2 132.0 129.7 130.2 16 Paper and products 26 3.21 144.8 142.2 144.2 145.8 144.6 149.0 148.7 147.9 148.0 154.0 153.9 155.1 154.1 17 Printing and publishing 27 4.72 131.5 131.9 132.6 132.6 138.2 137.3 135.7 136.8 136.9 135.6 137.7 137.7 138.2 18 Chemicals and products 28 7.74 197.4 199.3 201.3 202.7 208.6 107.4 207.7 209.7 207.8 210.5 213.0 212.5 19 Petroleum products 29 1.79 145.2 146.0 147.6 147.6 146.0 143.8 145.4 142.4 143.9 143.9 143.1 142.8 143.1 20 Rubber and plastic products. 30 2.24 253.6 263.4 260.9 262.3 267.5 270.4 265.5 270.0 270.0 278.0 276.6 273.1 21 Leather and products 31 .86 73.8 73.3 72.9 72.4 73.4 72.9 69.6 72.3 70.1 69.7 69.7 70.3 Durable manufactures 22 Ordnance, private and government 19,91 3.64 73.7 74.0 73.8 74.2 75.8 75.1 75.1 75.3 75.1 74.6 74.9 75.2 75.9 23 Lumber and products 24 1.64 136.3 136.0 136.2 138.1 137.2 137.7 137.2 136.1 136.8 135.2 136.9 137.3 24 Furniture and fixtures 25 1.37 155.8 159.5 160.7 159.9 163.1 163.6 159.4 159.6 159.6 159.5 161.7 161.5 25 Clay, glass, stone products .... 32 2.74 157.2 157.6 159.8 161.3 166.9 164.9 161.2 163.8 162.7 163.3 162.5 162.7 26 Primary metals 33 6.57 119.9 124.9 127.4 129.4 120.4 123.7 121.7 121.0 124.3 127.1 121.1 122.0 121.8 27 Iron and steel 331,2 4.21 113.2 118.3 121.3 123.8 110.8 116.2 115.8 114.3 118.1 119.0 112.0 115.0 28 Fabricated metal products. 34 5.93 141.6 143.7 144.2 144.9 150.8 150.2 148.8 150.3 149.3 149.3 147.6 147.5 i47.7 29 Nonelectrical machinery... 35 9.15 153.6 155.5 156.4 157.5 162.9 164.0 161.8 164.3 164.5 165.3 166.1 165.6 161.0 30 Electrical machinery 36 8.05 159.4 161.5 163.3 164.2 173.2 174.2 170.6 174.7 175.1 174.4 171.4 174.0 175.3 31 Transportation equipment 37 9.27 132.5 134.2 134.9 139.7 139.9 143.7 131.6 141.9 139.4 135.5 124.7 131.8 133.4 32 Motor vehicles and parts 371 4.50 169.9 171.6 171.0 178.9 173.1 179.7 156.0 176.3 169.6 160.2 138.7 150.8 152.7 33 Aerospace and miscellaneous transportation equipment. 372-9 4.77 97.2 98.9 100.9 102.8 108.6 109.7 108.6 109.6 111.0 112.2 111.5 113.9 115.1 34 Instruments 38 2.11 167.1 170.3 170.4 170.3 176.0 177.3 176.3 174.7 175.9 174.0 173.9 173.5 174.5 35 Miscellaneous manufactures 39 1.51 151.0 151.8 151.3 151.8 154.0 154.5 152.3 150.7 152.7 155.7 155.7 155.1 155.0 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total . 507.4 610.2 613.9 617.2 622.1 627.3 636.1 620.8 632.3 628.7 622.7 614.5 619.5 619.2 37 Final 2390.9 471.0 474.0 476.8 481.0 482.0 491.0 476.4 488.2 485.1 479.6 469.9 475.6 474.9 38 Consumer goods. 2277.5 326.6 327.5 329.9 331.8 329.4 334.7 323.9 331.5 329.8 326.0 320.4 321.7 322.3 39 Equipment 2113.4 144.4 146.5 146.9 149.2 152.6 156.3 152.5 156.7 155.4 153.6 149.5 153.9 152.6 40 Intermediate 2116.6 139.2 139.9 140.4 141.1 145.3 145.1 144.4 144.2 143.6 143.2 144.6 143.8 144.3 1. The industrial production series has been revised. For a description NOTE. Published groupings include some series and subtotals not of the changes, see "Revision of Industrial Production Index" in the shown separately. For description and historical data, see Industrial August 1979 BULLETIN, pp. 603-05. Production—1976 Revision (Board of Governors of the Federal Reserve 2. 1972 dollars. System: Washington, D.C.), December 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • November 1979 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1979 1976 1977 1978 Item Mar. Apr. May June July Aug. Sept. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,296 1,677 1,801 1,621 1,517 1,618 1,639 1,528 1,654 1,733 2 1-family 894 1,126 1,182 1,056 1,036 1,047 1,012 1,001 1,030 1,032 3 2-or-more-family 402 551 619 565 481 571 627 527 624 701 4 Started 1,538 1,986 2,019 1,786 1,745 1,835 1,923 rl ,786 1,806 1,881 5 1-family 1,163 1,451 1,433 1,266 1,278 1,226 1,288 '1,220 1,240 1,249 6 2-or-more-family 377 535 586 520 467 609 635 566 566 632 7 Under construction, end of period i.. 1,147 1,442 1,355 1,304 1,256 1,244 rl,247 '1,241 1,240 8 1-family 655 829 1,378 770 793 r730 '723 '715 717 9 2-or-more-family 492 613 553 534 519 r514 r524 '525 523 10 Completed 1,362 1,652 1,866 1,957 2,015 r2,016 rl,866 '1,756 1,725 n. a. 11 1 -family 1,026 1,254 1,368 1,412 1,438 rl,344 rl,345 '1,196 1,178 12 2-or-more-family 336 398 498 545 577 r672 r521 '560 547 13 Mobile homes shipped 246 277 276 270 273 271 279 282 277 Merchant builder activity in 1-family units 14 Number sold 639 819 817 784 709 709 692 804 758 757 15 Number for sale, end of period i 433 407 423 424 425 430 418 417 416 412 Price (thousands of dollars) 2 Median 16 Units sold 44.2 48.9 55.9 60.4 62.6 63.0 64.1 63.2 63.6 n.a. 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 68.5 71.1 71.8 74.3 71.5 74.2 78.2 EXISTING UNITS (1-family) 19 P N r u ic m e b o e f r u s n o i l t d s sold (thous. of dollars)2 3,002 3,572 3,905 3,650 3,760 3,860 3,560 3,770 3,850 4,010 20 Median 38.1 42.9 48.7 53.8 54.7 55.9 56.8 57.9 57.7 n.a. 21 Average 42.2 47.9 55.1 61.8 62.5 64.2 66.1 66.7 66.3 66.1 Value of new construction * (millions of dollars) CONSTRUCTION 22 Total put in place 148,778 172,552 202,219 216,676 216,212 223,205 224,686 232,593 232,407 235,801 23 Private 110,416 134,723 157,455 172,672 171,692 174,803 178,703 181,678 182,871 183,654 24 Residential 60,519 80,957 93,088 96,460 95,496 94,963 97,339 98,781 100,056 101,166 25 Nonresidential, total 49,897 53,766 64,367 76,212 76,196 79,840 81,364 82,897 82,815 82,488 Buildings 26 Industrial 7,182 7,713 10,762 15,201 14,034 14,504 14,697 15,547 13,751 13,874 27 Commercial 12,757 14,789 18,280 20,990 21,463 23,601 24,785 24,785 25,818 25,799 28 Other 6,155 6,200 6,659 7,071 7,150 7,141 7,306 7,427 7,532 7,478 29 Public utilities and other 23,803 25,064 28,666 32,967 33,325 34,101 33,958 35,140 35,714 35,337 30 Public 38,312 37,828 44,762 44,004 44,823 48,402 45,983 50,916 49,536 52,147 31 Military 1,521 1,517 1,462 1,983 1,550 1,531 1,787 1,459 1,702 1,717 32 Highway 9,439 9,280 8,627 8,882 9,875 11,674 10,250 11,166 10,802 n.a. 33 Conservation and development... 3,751 3,882 3,697 4,854 4,417 5,383 3,572 5,371 5,273 n.a. 34 Other 3 23,601 23,149 23,503 28,285 30,376 29,814 30,374 32,920 31,759 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 SSSeeepppttt... 11997788 11997799 111999777999 SSeepptt.. SSeepptt.. (((111999666777 Dec. Mar. June Sept. May June July Aug. Sept. === 111000000)))333 CONSUMER PRICES 1 8.3 12.1 8.5 13.0 13.4 13.2 1.1 1.0 1.0 1.1 1.1 223.4 2 Commodities 7.9 12.4 9.6 14.5 13.3 12.3 .9 1.0 .9 .9 1.1 214.1 3 Food 10.8 10.0 10.2 17.7 7.5 4.2 .7 .2 . 1 0 .9 237.1 4 Commodities less food 6.7 13.5 9.6 12.9 15.8 16.2 1.1 1.3 1.2 1.3 1.2 201.8 5 Durable 7.7 9.8 11.3 10.0 9.1 8.7 .5 .8 .7 .7 .7 194.5 6 Nondurable 5.2 18.4 6.7 16.5 25.8 25.7 1.8 2.1 2.1 1.9 1.8 209.6 7 Services 9.1 11.6 7.2 10.6 13.8 14.3 1.3 1.0 1.1 1.2 1.1 240.7 8 Rent 7.1 7.6 7.7 3.6 8.7 10.7 1.0 .5 .8 .9 .8 179.0 9.4 12.2 7.1 11.7 14.5 15.1 1.3 1.1 1.2 1.3 1.1 252.1 Other groupings 10 All items less food 7.8 12.6 8.5 12.0 1144..99 15.4 1.2 1.1 1.2 11..33 1.2 219.6 11 All items less food and energy 7.9 9.9 7.7 9.3 11.2 11.5 .9 ..88 .7 1.0 1.0 211.5 12.0 16.1 10.9 16.7 18.0 19.3 1.3 11..44 1.4 1.7 1.4 271.9 PRODUCER PRICES 8.4 11.8 10.5 14.3 '7.5 15.0 .4 '.5 '.9 1.2 1.4 220.4 8.4 13.3 11.1 16.0 '6.7 19.6 .4 '.5 '1.0 1.6 1.8 221.3 10.2 8.8 15.3 21.0 '-11.3 13.1 -1.5 ' — 1.2 0.0 1.2 1.8 227.8 7.4 15.8 8.8 13.4 r 17.9 23.2 1.5 '1.4 '1.6 1.8 1.9 215.9 8.4 8.3 88..88 10.3 '9.8 4.3 .6 '.6 '.6 .1 .3 217.7 9.2 15.3 1133..00 17.9 r 12.0 18.5 .8 '1.0 1.7 1.0 1.6 258.0 6.6 14.8 11.2 14.0 '15.3 18.8 1.0 '1.0 '1.4 1.4 1.5 252.1 Crude 20 Nonfood 14.9 23.0 19.8 29.2 '22.2 21.0 22..44 '3.2 1.4 .5 2.9 362.1 21 Food 20.0 13.9 21.2 31.0 -7.1 13.9 -.2 -1.2 2.1 -.2 1.5 248.7 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 • November 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 Q2 Q3 Q4 Ql Q2 Q3 p GROSS NATIONAL PRODUCT 1 Total 1,702.2 1,899.5 2,127.6 2,104.2 2,159.6 2,235.2 2,292.1 2,329.8 2,391.5 By source 2 Personal consumption expenditures 1,089.9 1,210.0 1.350.8 1,331.2 1,369.3 1,415.4 1,454.2 1,475.9 1,528.6 3 Durable goods 157.4 178.8 200.3 200.3 203.5 212.1 213.8 208.7 213.7 4 Nondurable goods 443.9 481.3 530.6 521.8 536.7 558.1 571.1 581.2 602.5 5 Services 488.5 549.8 619.8 609.1 629.1 645.1 669.3 686.0 712.4 6 Gross private domestic investment 243.0 303.3 351.5 352.3 356.2 370.5 373.8 395.4 392.1 7 Fixed investment 233.0 281.3 329. 1 326.5 336.1 349.8 354.6 361.9 372. 1 8 Nonresidential 164.9 189.4 221.1 218.8 225.9 236.1 243.4 249.1 257.2 9 Structures 57.3 62.6 76.5 75.2 79.7 84.4 84.9 90.5 94.6 10 Producers' durable equipment 107.6 126.8 144.6 143.6 146.3 151.8 158.5 158.6 162.6 11 Residential structures 68. 1 91.9 108.0 107.7 110.2 113.7 111.2 112.9 114.9 12 Nonfarm 65.7 88.8 104.4 104.3 106.4 110.0 107.8 109.1 110.8 13 Change in business inventories 10.0 21.9 22.3 25.8 20.0 20.6 19.1 33.4 20.0 14. Nonfarm 12.1 20.7 21.3 25.3 18.5 19.3 18.8 32.6 19.2 15 Net exports of goods and services 8.0 -9.9 -10.3 -7.6 -6.8 -4.5 4.0 -8.1 -5.3 16 Exports 163.3 175.9 207.2 205.7 213.8 224.9 238.5 243.7 266.4 17 Imports 155.4 185.8 217.5 213.3 220.6 229.4 234.4 251.9 271.7 18 Government purchases of goods and services... 361.3 396.2 435.6 428.3 440.9 453.8 460.1 466.6 476.2 19 Federal 129.7 144.4 152.6 148.2 152.3 159.0 163.6 161.7 162.5 20 State and local 231.6 251.8 283.0 280.1 288.6 294.8 296.5 304.9 313.7 By major type of product 21 Final sales, total 1,692.1 1,877.6 2,105.2 2,078.4 2,139.5 2,214.5 2,272.9 2,296.4 2,371.5 22 Goods 762.7 842.2 930.0 922.5 940.9 983.8 1,011.8 1,018.1 1,035.5 23 Durable 305.9 345.9 380.4 378.0 382.6 402.3 425.5 422.4 424.3 24 Nondurable 456.8 496.3 549.6 544.5 558.3 581.6 586.2 595.7 611.3 25 Services 776.7 866.4 969.3 956.2 981.7 1.005.3 1,041.4 1,064.2 1,098.8 26 Structures 162.7 190.9 228.2 225.6 237.0 246.0 238.9 247.5 257.2 27 Change in business inventories 10.0 21.9 22.3 25.8 20.0 20.6 19.1 33.4 20.0 28 Durable goods 5.3 11.9 13.9 13.1 10.3 13.4 18.4 24.3 9.8 29 Nondurable goods 4.7 10.0 8.4 12.7 9.7 7.2 .7 9.1 10.2 30 MEMO: Total GNP in 1972 dollars 1,273.0 1,340.5 1,399.2 1,395.2 1,407.3 1,426.6 1,430.6 1,422.3 1,430.8 NATIONAL INCOME 31 Total 1,359.8 1,525.8 1,724.3 1,703.9 1,752.5 1,820.0 1,869.0 1,897.9 n.a. 32 Compensation of employees 1.037.8 1,156.9 1.304.5 1,288.2 1,321.1 1,364.8 1,411.2 1,439.7 1,471.8 33 Wages and salaries 890.0 984.0 1,103.5 1,090.0 1,117.4 1,154.7 1,189.4 1,211.5 1,237.0 34 Government and government enterprises.. 188.0 201.3 218.0 215.3 219.2 225.1 228.1 231.2 234.5 35 Other 702.0 782.7 885.5 874.6 898.1 929.6 961.3 980.3 1,002.5 36 Supplement to waues and salaries 147.8 172.9 201.0 198.3 203.7 210.1 221.8 228.2 223344..88 37 Employer contributions for social insurance 7700..44 81.2 94.6 93.6 95.5 98.2 105.8 107.9 109.9 38 Other labor income 77.4 91.8 106.5 104.7 108.2 111.9 116.0 120.3 124.9 39 Proprietors'income1 89.3 100.2 116.8 115.0 117.4 125.7 129.0 129.3 128.6 40 Business and professional1 71.0 80.5 89.1 87.3 91.3 94.4 94.8 95.5 98.9 41 Farm1 18.3 19.6 27.7 27.7 26.1 31.3 34.2 33.7 29.7 42 Rental income of persons2 22. 1 24.7 25.9 24.4 26.8 27.1 27.3 26.8 26.5 43 Corporate profits1 126.8 150.0 167.7 169.4 175.2 184.8 178.9 176.6 n.a. 44 Profits before tax 3 156.0 177. 1 206.0 207.2 212.0 227.4 233.3 227.9 n.a. 45 Inventory valuation adjustment -14.6 -15.2 -25.2 -25.1 -23.0 -28.8 -39.9 -36.6 -40.8 46 Capital consumption adjustment -14.5 -12.0 -13. 1 -12.6 -13.8 -13.8 -14.5 -14.7 -17.6 47 Net interest 83.8 94.0 109.5 106.8 111.9 117.6 122.6 125.6 130.8 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 AAccccoouunntt 11997766 11997777 11997788 Q2 Q3 Q4 Ql Q2 Q3* PERSONAL INCOME AND SAVING 11,,338811..66 1 S31.6 1,717.4 1,689.3 1,742.5 1,803.1 1,852.6 1,892.5 1,943.4 889900..00 984.0 1,103.3 1,090.0 1,116.8 1,154.3 1,189.3 1,212.4 1,237.1 307.2 343.1 387.4 383.4 393.7 408.6 423.0 431.7 437.8 237.4 766.0 298.3 294.1 300.8 312.7 324.8 328.5 331.6 216.3 739.1 269.4 265.9 272.5 281.6 291.1 295.8 303.8 6 Service industries 178.5 200.5 228.7 225.4 231.9 239.4 247.2 252.8 260.9 7 Government and government enterprises 188.0 201.3 217.8 215.3 218.7 224.7 228.0 232.1 234.6 77.4 91.8 106.5 104.7 108.2 111.9 116.0 120.3 124.9 89.3 100.2 116.8 115.0 117.4 125.7 129.0 129.3 128.6 71.0 80.5 89.1 87.3 91.3 94.4 94.8 95.5 98.9 18.3 19.6 27.7 27.7 26.1 31.3 34.2 33.7 29.7 22.1 24.7 25.9 24.4 26.8 27.1 27.3 26.8 26.5 13 Dividends 37.5 42.1 47.2 46.0 47.8 49.7 51.5 52.3 52.8 127.0 141.7 163.3 159.4 167.2 174.3 181.0 187.6 193.6 193.8 208.4 224.1 218.8 228.3 231.8 237.3 243.6 261.0 16 Old-age survivors, disability, and health 92.9 105.0 116.3 112.4 119.8 121.5 123.8 127.1 138.9 17 LESS: Personal contributions for social 55.6 61.3 69.6 69.0 70.2 71.8 78.7 79.8 81.1 18 EQUALS' Personal income 1,381.6 1,531.6 1,717.4 1,689.3 1,742.5 1,803.1 1,852.6 1,892.5 1,943.4 19 LESS: Personal tax and nontax payments 197.1 226.4 259.0 252.1 266.0 278.2 280.4 290.7 306.4 20 EQUALS: Disposable personal income 1,184.5 1,305.1 1,458.4 1,437.3 1,476.5 1,524.8 1,572.2 1,601.7 1,636.9 21 LESS* Personal outlays 1,115.9 1,240.2 1,386.4 1,366.1 1,405.6 1,453.4 1,493.0 1,515.8 1,570.0 22 EQUALS* Personal saving 68.6 65.0 72.0 71.2 70.9 71.5 79.2 85.9 66.9 MEMO: Per capita (1972 dollars) 23 Gross national product 5,916 6,181 6,402 6,392 6,433 6,506 6,514 6,459 6,483 24 Personal consumption expenditures 3.813 3,974 4,121 4,099 4,138 4,197 4,197 4,155 4,190 25 Disposable personal income 4,144 4,285 4,449 4,426 4,462 4,522 4,536 4,510 4,487 26 Saving rate (percent) 5.8 5.0 4.9 5.0 4.8 4.7 5.0 5.4 4.1 GROSS SAVING 27 Gross private saving 271.9 295.6 324.9 324.2 330.4 336.1 345.2 360.5 n.a. 28 Personal saving 68.6 65.0 72.0 71.2 70.9 71.5 79.2 85.9 66.9 29 Undistributed corporate profits1 25.5 35.2 36.0 38.7 40.0 40.1 36.1 35.6 n.a. 30 Corporate inventory valuation adjustment -14.6 -15.2 -25.2 -25.1 -23.0 -28.8 -39.9 -36.6 -40.8 Capital consumption allowances 31 Corporate 111.6 121.3 132.9 131.7 134.3 136.8 139.9 145.1 150.1 32 Noncorporate 66.1 74.1 84.0 82.7 85.2 87.7 89.9 93.9 97.5 3333 WWaaggee aaccccrruuaallss lleessss ddiissbbuurrsseemmeennttss 34 Government surplus, or deficit (—), national income and product accounts -35.7 -19.5 -.3 5.0 2.3 10.8 15.8 12.7 n.a. 35 Federal -53.6 -46.3 -27.7 -24.6 -20.4 -16.3 -11.7 -7.0 n.a. 36 State and local 17.9 26.8 27.4 29.6 22.7 27.1 27.6 19.7 n.a. 37 Capital grants received by the United States, 1.1 1.1 1.1 38 Investment... 242.3 283.6 327.9 331.5 336.5 351.0 362.8 373.1 371.9 39 Gross private domestic 243.0 303.3 351.5 352.3 356.2 370.5 373.8 395.4 392.1 -.1 -19.6 -23.5 -20.8 -19.6 -19.4 -11.0 -22.3 -20.2 41 Statistical discrepancy 6.1 7.5 3.3 2.3 3.9 4.1 .6 -1.3 n.a. 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 • November 1979 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1978 1979 IItteemm ccrreeddiittss oorr ddeebbiittss 11997766 11997777 11997788 Q2 Q3 Q4 Q1 Q2 1 4,605 -14,092 -13,895 -3,426 -3,227 -313 415 -965 O -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 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 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 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 1(95 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 liabilities 5 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 assets6 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, 2,783 534 2,180 803 -1,053 1,549 22,,558833 --223399 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 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 773322 248 115 182 -3,585 343 40 Foreign official assets in the United States (increase, -f )•. 13,066 35,416 31,004 -5,129 4,519 16,719 -9,227 -9,669 41 Changes in Organization of Petroleum Exporting Countries official assets in the United States (part of line 25 9,581 66,,335511 -727 -2,705 -1,794 1,803 -1,916 676 42 Transfers under military grant programs (excluded from lines 4, 6, and 11 above) 373 220044 225599 50 69 63 3311 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 Mar. Apr. May June July Aug. Sept. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 115,156 121,150 143,574 14,452 13,883 13,862 15,038 15,669 15,821 15,832 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 121,009 147,685 172,026 15,273 16,036 16,342 16,937 16,777 18,177 18,666 3 Trade balance -5,853 -26,535 -28,452 -821 -2,153 -2,480 -1,900 -1,108 -2,357 -2,833 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 Apr. May June July Aug. Sept. Oct.* 1 Total i 18,747 19,312 18,650 21,403 22,230 21,246 20,023 20,023 18,534 17,994 2 Gold stock, including Exchange Stabilization Fund2 11,598 11,719 11,671 11,418 11,354 11,323 11,290 11,259 11,228 11,194 3 Special drawing rights1,3 2,395 2,629 1,558 2,602 2,624 2,670 2,690 2,689 2,725 2,659 4 Reserve position in International Monetary Fund1 4,434 4,946 1,047 1,097 1,193 1,204 1,200 1,277 1,280 1,238 5 Foreign currencies4 320 18 4,374 6,286 7,059 6,049 4,843 4,798 3,301 2,903 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 • November 1979 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1979 AAsssseett aaccccoouunntt 1976 1977 19782 Feb. Mar. Apr. May June July Aug .P All foreign countries 219,420 258,897 306,795 296,983 307,688 303,799 311,051 326,732 326,122 349,983 2 Claims on United States 7,889 11,623 17,340 16,094 22,894 19,959 24,527 '29,267 26,575 41,917 3 Parent bank 4,323 7,806 12,811 11,217 17,300 14,233 17,917 22,633 19,704 35,203 4 Other 3,566 3,817 4,529 4,877 5,594 5,726 6,610 '6,634 6,871 6,714 5 Claims on foreigners 204.486 238,848 278,135 268,649 271,828 270,946 274,207 '284,351 286,209 294,541 6 Other branches of parent bank.... 45,955 55,772 70,338 64,518 65,257 64,076 65,908 69,349 70,020 74,528 7 Banks 83,765 91,883 103,111 99,720 101,840 101,772 103,242 107,564 107,715 111,671 8 Public borrowers1 10,613 14,634 23,737 24,586 24,895 24,828 24,690 24,834 24,579 24,226 9 Nonbank foreigners 64,153 76,560 80,949 79,825 79,836 80,270 80,367 '82,604 83,895 84,116 10 Other assets 7,045 8,425 11,320 12,240 12,966 12,894 12,317 13,114 13,338 13,525 11 Total payable in U.S. dollars 167,695 193,764 224,940 214,590 224,453 221,904 228,311 237,903 234,039 258,716 12 Claims on United States 7,595 11,049 16,382 15,159 22,029 18,989 23,579 '28,197 25,506 40,797 13 Parent bank 4,264 7,692 12,625 10,987 17,108 13,994 17,735 22,379 19,448 34,937 14 Other 3,332 3,357 3,757 4,172 4,921 4,995 5,844 '5,818 6,058 5,860 15 Claims on foreigners 156,896 178,896 203,498 193,717 196,496 196,404 198,547 '203,370 202,061 211,257 16 Other branches of parent bank.... 37,909 44,256 55,408 49,864 50,077 49,615 50,738 52,884 53,421 58,041 17 Banks 66,331 70,786 78,686 74,861 77,236 77,528 79,002 81,316 79,830 83,950 18 Public borrowers1 9,022 12,632 19,567 20,338 21,091 20,851 20,815 20,552 20,187 20,082 19 Nonbank foreigners 43,634 51,222 49,837 48,654 48,092 48,410 47,992 '48,618 48,623 49,184 20 Other assets 3,204 3,820 5,060 5,714 5,928 6,511 6,185 6,336 6,472 6,662 United Kingdom 21 Total, all currencies 81,466 90,933 106,593 101,179 102,144 102,876 104,915 112,881 115,217 120,703 22 Claims on United States 3,354 4,341 5,370 3,912 5,019 5,268 6,303 '7,492 8,408 10,559 23 Parent bank 2,376 3,518 4,448 2,689 3,544 3,679 4,410 5,495 6,177 8,520 24 Other 978 823 922 1,223 1,475 1,589 1,893 '1,997 2,231 2,039 25 Claims on foreigners 75,859 84,016 98,137 94,032 93,840 94,120 95.266 '101,693 103,033 106,394 26 Other branches of parent bank.... 19,753 22,017 27,830 24,474 24,911 24,435 25,248 29,158 28,376 31,800 27 Banks 38,089 39,899 45,013 44,032 42,964 43,308 43,657 44,800 46,291 46,625 28 Public borrowers1 1,274 2,206 4,522 4,548 4,608 4,547 4,579 4,872 4,489 4,639 29 Nonbank foreigners 16,743 19,895 20,772 20,978 21,357 21,830 21,782 '22,863 23,877 23,330 30 Other assets 2,253 2,576 3,086 3,235 3,285 3,488 3,346 3,696 3,776 3,750 31 Total payable in U.S. dollars 61,587 66,635 75,860 70,525 71,499 72,015 73,480 78,155 79,211 85,380 32 Claims on United States 3,275 4,100 5,113 3,618 4.710 4,946 5,981 '7,033 7,956 10,146 2,374 3,431 4,386 2,610 3,488 3,612 4,374 5,386 6,060 8,443 34 Other 902 669 727 1,008 1,222 1.334 1,607 '1,647 1,896 1,703 35 Claims on foreigners 57,488 61,408 69,416 65,416 65,214 65,356 65,968 '69,451 69,496 73,503 36 Other branches of parent bank.... 17,249 18,947 22,838 19,884 20,370 19,866 20,505 23,999 23,481 26,983 37 Banks 28,983 28,530 31,482 30,185 29,393 29,924 30,211 29,803 30,626 31,318 38 Public borrowers1 846 1,669 3,317 3,414 3,523 3,429 3,331 3,396 3,166 3,210 39 Nonbank foreigners 10,410 12,263 11,779 11,933 11,928 12,137 11,921 '12,253 12,223 11,992 824 1,126 1,331 1,491 1,575 1,713 1,531 1,671 1,759 1,731 Bahamas and Caymans 66,774 79,052 91,735 88,999 97,509 93,832 98,057 103,387 98,839 113,512 42 Claims on United States 3,508 5,782 9,635 10,000 15,774 12,859 16,360 19,979 16,613 29,021 1,141 3,051 6,429 6,786 12,158 9,332 12,244 15,952 12,566 24,929 44 Other 2,367 2,731 3,206 3,214 3,616 3,527 4,116 4,027 4,047 4,092 45 Claims on foreigners 62,048 71,671 79,774 76,507 79,057 77,992 78,869 80,601 79,476 81,370 46 Other branches of parent bank.... 8,144 11,120 12,904 11,841 12,086 11,756 11,886 11,295 11,871 10,745 47 Banks 25,354 27,939 33,677 31,534 33,821 33,524 34,063 36,560 34,940 37,897 48 Public borrowers1 7,105 9,109 11,514 12,125 12,573 12,360 12,703 12,445 12,301 11,981 49 Nonbank foreigners 21,445 23,503 21,679 21,007 20,577 20,352 20,217 20,301 20,364 20,747 50 Other assets 1,217 1,599 2,326 2,492 2,678 2,981 2,828 2,807 2,750 3,121 51 Total payable in U.S. dollars 62,705 73,987 85,417 82,616 91,184 87,875 91,829 97,028 92,216 106,767 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 Feb. Mar. Apr. May June July Aug.* All foreign countries 52 Total, all currencies 219,420 258,897 306,795 296,983 307,688 303,799 311,051 326,732 326,122 349,983 53 To United States 32,719 44,154 57,948 54,731 56,447 56,039 57,668 61,056 60,129 67,746 54 Parent bank 19,773 24,542 28,564 24,529 21,484 23,992 23,440 19,362 20,263 20,221 55 Other banks in United States 12,338 9,196 12,547 9,891 9,904 14,988 12,456 17,887 56 Nonbanks 17,046 21,006 22,416 22,156 24,324 26,706 27,410 29,638 57 Foreigners 179,954 206,579 238,912 232,286 240,968 237,377 242,186 253,784 253,336 269,778 58 Other branches of parent bank 44,370 53,244 67,496 62,410 62,431 61,982 63,709 66,537 67,941 72,815 59 Banks 83,880 94,140 97,711 94,312 102,346 100,148 101,779 109,180 104,995 117,594 60 Official institutions 25,829 28,110 31,936 32,028 34,275 33,006 34,107 34,377 35,363 33,426 25,877 31,085 41,769 43,536 41,916 42,241 42,591 43,690 45,037 45,943 62 Other liabilities 6,747 8,163 9,935 9,966 10,273 10,383 11,197 11,892 12,657 12,459 63 Total payable in U.S. dollars 173,071 198,572 230,810 221,051 229,706 226,469 232,240 243,093 240,054 263,927 64 To United States 31,932 42,881 55,811 52,577 54,357 54,070 55,536 58,516 57,487 65,135 65 Parent bank 19,559 24,213 27,493 23,523 20,452 23,048 22,503 18,340 19,225 19,178 6 6 7 6 N O o th n e b r a b n a k n s k s in United States J 12 373 18 669 1 1 2 6 , ,2 0 3 8 4 4 20 8 , , 1 8 9 5 9 5 2 1 1 2 , , 6 3 0 0 3 2 '2 '9 1 , , 6 3 8 3 8 4 2 9 3 , , 6 3 7 6 1 2 2 1 5 4 , , 4 6 8 9 6 0 2 1 6 2 , , 1 1 1 5 2 0 2 1 8 7 , , 5 4 3 2 3 4 68 To foreigners 137,612 151,363 169,927 163,029 169,665 166,928 170,528 178,217 176,189 192,067 69 Other branches of parent bank 37,098 43,268 53,396 48,411 48,134 48,371 49,420 51,007 52,039 56,719 70 Banks 60,619 64,872 63,000 59,226 65,597 63,977 65,250 70,848 65,648 77,936 22,878 23,972 26,404 26,413 28,524 27,108 28,310 28,117 29,497 27,383 17,017 19,251 27,127 28,979 27,410 27,472 27,548 28,245 29,005 30,029 73 Other liabilities 3,527 4,328 5,072 5,445 5,684 5,471 6,176 6,360 6,378 6,725 United Kingdom 74 Total, all currencies 81,466 90,933 106,593 101,179 102,144 102,876 104,915 112,881 115,217 120,703 75 To United States 5,997 7,753 9,730 9,214 10,086 10,781 11,697 12,779 13,626 17,174 76 Parent bank 1,198 1,451 1,887 1,731 1,461 1,814 2,113 1,505 1,706 2,669 7 7 7 8 N O o th n e b r a b n a k n s k s in United States I| A 7QR 6 302 4 3 , , 2 61 3 1 2 4 3 , , 2 2 6 1 7 6 4 3 , , 9 6 4 7 8 7 3 5 , , 5 4 4 2 1 6 6 3 , , 2 3 0 8 4 0 4 7 , , 2 0 6 0 5 9 4 7 , , 8 0 4 7 2 8 6 8 , , 1 3 7 3 5 0 79 To foreigners 73,228 80,736 93,202 88,122 88,068 88,174 88,796 95,385 96,258 98,557 80 Other branches of parent bank... 7,092 9,376 12,786 11,303 10,910 11,023 10,931 11,353 11,193 11,467 81 Banks 36,259 37,893 39,917 36,655 38,318 39,391 38,417 42,297 41,336 46,256 17,273 18,318 20,963 20,637 21,845 20,115 21,312 23,140 24,017 21,825 12,605 15,149 19,536 19,527 16,995 17,645 18,136 18,595 19,712 19,009 84 Other liabilities 2,241 2,445 3,661 3,843 3,990 3,921 4,422 4,717 5,333 4,972 85 Total payable in U.S. dollars 63,174 67,573 77,030 72,293 72,639 72,653 74,127 79,256 80,398 86,642 86 To United States 5,849 7.480 9,328 8,855 9,756 10,439 11,200 12,199 13,077 16,572 87 Parent bank 1,182 1,416 1,836 1,694 1,418 1,780 2,047 1,460 1,637 2,613 8 8 8 9 O No th n e b r a b n a k n s k s in United States )J A4 ,667 4 3 , , 1 3 4 4 4 8 4 3 , , 0 1 3 2 9 2 4 3 , , 7 6 1 2 2 6 5 3 , , 1 4 6 9 7 2 3 5 , , 3 8 2 3 1 2 4 6 , , 1 5 9 4 4 5 4 6 , , 7 6 7 6 7 3 7 6 , , 8 0 7 8 1 8 56,372 58,977 66,216 61,729 61,215 60,689 60,948 65,081 65,403 68,035 91 Other branches of parent bank... 5,874 7,505 9,635 8,393 7,985 7,706 7,777 7,711 7,377 7,720 92 Banks 25,527 25,608 25,287 21,911 23,017 24,002 22,684 25,436 23,893 28,698 15,423 15,482 17,091 16,868 18,030 16,197 17,486 19,093 20,288 18,119 9,547 10,382 14,203 14,557 12,183 12,784 13,001 12,841 13,845 13,498 95 Other liabilities 953 1,116 1,486 1,709 1,668 1,525 1,979 1,976 1,918 2,035 Bahamas and Caymans 66,774 79,052 91,735 88,999 97,509 93,832 98,057 103,387 98,839 113,512 97 To United States 22,721 32,176 39,431 37,552 38,672 37,698 38,764 40,063 37,974 41,767 98 Parent bank 16,161 20,956 20,456 16,732 14,877 16,627 16,057 12,286 12,242 11,127 1 9 0 9 0 N O o th n e b r a b n a k n s ks in United States > O,3DU 1111 ,OzzOuft 1 6 2 , , 1 7 9 7 9 6 1 4 5 , , 8 9 6 5 3 7 1 7 6 , , 0 7 4 5 4 1 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 6 9 , , 3 3 4 9 2 0 2 1 0 0 , , 3 2 7 6 4 6 101 To foreigners 42,899 45,292 50,447 49,534 56,742 54,124 57,133 61,176 58,689 69,340 102 Other branches of parent bank... 13,801 12,816 16,094 13,697 13,923 14,716 15,997 17,104 18,223 20,246 103 Banks 21,760 24,717 23,104 23,299 28,749 25,964 28,599 31,662 28,204 35,145 104 Official institutions 3,573 3,000 4,208 4,429 5,181 5,328 4,970 4,074 4,375 4,751 105 Nonbank foreigners 3,765 4,759 7,041 8,109 8,889 8,116 7,567 8,336 7,887 9,198 106 Other liabilities 1,154 1,584 1,857 1,913 2,095 2,010 2,160 2,148 2,176 2,405 107 Total payable in U.S. dollars 63,417 74,463 87,014 84,337 92,673 88,942 92,797 97,993 93,470 107,623 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 • November 1979 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1979 IItteemm 11997766 11997777 11997788'' Mar. Apr. May June July Aug. Sept. P By type 1 Total1 95,634 131,097 162,567 154,310 148,364 141,084 144,017 147,829 148,463 149,368 2 Liabilities reported by banks in the United States2 17,231 18,003 23,274 23,029 24,924 25,720 25,349 25,640 25,155 2255,,228811 3 U.S. Treasury bills and certificates3 3377,,772255 47,820 67,671 59,774 51,614 43,727 46,304 49,425 50,146 50,842 U.S. Treasury bonds and notes 11,788 32,164 35,912 36,086 36,329 36,179 36,478 37,510 38,025 38,071 5 Nonmarketable4 2200,,664488 2200,,444433 20,970 20,471 20,467 20,467 20,697 19,797 19,547 19,547 6 U.S. securities other than U.S. Treasury 8,242 12,667 14,740 14,950 15,030 14,991 15,189 15,457 15,590 1155,,662277 By area 7 Total 95,634 131,097 162,567 154,310 148,364 141,084 144,017 147,829 148,463 149,368 8 Western Europe1 45,882 70,748 92,989 90,304 85,198 81,025 83,523 86,630 86,401 87,040 9 Canada 3,406 2,334 2,506 3,088 3,044 1,993 1,979 2,116 2,185 2,412 10 Latin America and Caribbean 4,926 4,649 5,045 4,221 4,671 4,822 4,610 5,397 4,497 4,879 11 Asia 37,767 50,693 58,858 53,888 52,086 49,827 50,573 50,380 51,749 52,087 12 Africa 1,893 1,742 2,423 2,135 2,529 2,604 2,614 2,618 3,219 2,513 13 Other countries6 1,760 931 746 674 836 813 718 688 412 437 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.r Dec.r Mar.r June 1 Banks' own liabilities 781 925 2,235 1,771 2,235 1,781 1,986 2 Banks' own claims1 1,834 2,356 3,522 2,950 3,522 2,602 2,530 3 Deposits 1,103 941 1,650 1,375 1,650 1,121 1,345 4 Other claims 731 1,415 1,871 1,575 1,871 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

Nonbank-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 Mar. Apr. May June July Aug.? Sept.p 1 All foreigners 110,657 126,168 r167,087 '166,934 '160,248 '159,114 167,855 168,957 191,302 185,369 2 Banks' own liabilities. '78,995 '85,569 '86,152 '93,689 100,018 97,255 117,493 111,398 3 Demand deposits... 16,803 18,996 19,201 16,696 18,367 '18,105 19,326 19,088 18,914 20,226 4 Time deposits^ 11,347 11,521 12,473 '12,385 '12,516 '12,650 12,735 12,608 12,963 13,247 5 Other2 '9,767 '8,560 '10,264 '13,564 12,440 12,753 12,197 12,166 6 Own foreign offices 3 '37,554 '47,928 '45,005 '49,370 55,517 52,806 73,418 65,761 7 Banks' custody liabilities4 88,091 '81,365 '74,096 '65,425 67,837 71,702 73,809 73,970 8 U.S. Treasury bills and certificates 5 40,744 48,906 68,202 60,709 53,434 '45,103 47,425 51,467 52,347 52,429 9 Other negotiable and readily transferable instruments 17,396 '18,487 '18,513 '18,118 18,115 18,020 19,180 19,208 10 Other 2,493 2,169 2,150 2,203 2,296 2,215 2,282 2,333 Nonmonetary international and regional organizations7 5,714 3,274 2,617 2,364 2,300 2,757 2,851 3,437 3,551 2,909 12 Banks' own liabilities. 916 769 791 1,306 1,500 844 603 491 13 Demand deposits... 290 231 330 276 270 298 264 216 154 161 14 Time deposits1 205 139 94 99 100 85 87 79 87 92 15 Other2 492 394 422 923 1,150 549 362 238 16 Banks' custody liabilities4 1,701 1,595 1,509 1,451 1,350 2,593 2,948 2,418 17 U.S. Treasury bills and certificates 2,701 706 201 211 212 175 199 1,345 1,531 912 18 Other negotiable and readily transferable instruments6 1,499 1,382 1,294 1,274 1,151 1,247 1,416 1,505 19 Other 2 2 1 1 1 1 1 20 Official institutions8.. 54,956 65,822 '90,688 '82,802 '76,537 '69,447 71,653 75,066 75,301 76,122 21 Banks' own liabilities. '12,112 '10,740 '12,675 '13,958 13,305 14,240 12,796 13,177 22 Demand deposits... 3,394 3,528 3,390 2,864 3,583 3,170 3,196 2,850 2,397 3,130 23 Time deposits i 2,321 1,797 2,546 2,524 2,491 '2,567 2,506 2,590 2,607 2,514 24 Other2 6,176 5,352 '6,601 '8,221 7,604 8,800 7,791 7,534 25 Banks' custody liabilities4 78,577 72,062 63,862 55,489 58,347 60,826 62,506 62,945 26 U.S. Treasury bills and certificates5 37,725 47,820 67,415 59,774 51,614 43,727 46,304 49,425 50,146 50,842 27 Other negotiable and readily transferable instruments6 10,992 '12,245 '12,209 '11,692 12,003 11,350 12,307 11,999 28 Other 170 43 40 70 40 50 52 104 29 Banks9. 37,174 42,335 '57,758 '65,926 '64,363 '70,178 76,465 73,313 95,290 88,897 30 Banks' own liabilities '52,973 '61,016 '59,386 '65,010 71,434 68,362 90,271 83,739 31 Unaffiliated foreign banks. 15,419 '13,088 '14,381 '15,640 15,917 15,556 16,853 17,979 32 Demand deposits 9,104 10,933 11,239 9,349 10,202 '10,278 11,138 11,361 11,761 12,424 33 Time deposits1 2,297 2,040 1,479 '1,258 1,302 '1,263 1,398 1,209 1,521 1,760 34 Other2 2,700 '2,481 2,877 '4,099 3,382 2,987 3,571 3,794 35 Own foreign offices 3. '37,554 '47,928 '45,005 '49,370 55,517 52,806 73,418 65,761 36 Banks' custody liabilities4 4,785 4,910 '4,977 5,168 5,031 4,951 5,019 5,157 37 U.S. Treasury bills and certificates 119 141 300 425 456 508 407 347 384 406 38 Other negotiable and readily transferable instruments6 2,425 2,421 '2,499 2,593 2,480 2,556 2,508 2,605 39 Other 2,060 2,064 2,022 2,066 2,145 2,048 2,127 2,146 40 Other foreigners 12,814 14,736 16,023 15,842 • 17,047 '16,732 16,886 17,140 17,159 17,442 41 Banks' own liabilities. 12,995 13,044 13,299 '13,415 13,778 13,809 13,823 13,991 42 Demand deposits... 4,015 4,304 4,242 4,207 4,312 4,358 4,729 4,661 4,602 4,510 43 Time deposits1 6,524 7,546 8,353 8,504 8,623 '8,735 8,744 8,731 8,748 8,881 44 Other2 399 333 364 322 305 417 473 600 45 Banks'custody liabilities4 3,028 '2,798 3,748 '3,317 3,108 3,332 3,335 3,451 46 U.S. Treasury bills and certificates 198 240 285 299 1,152 693 516 350 285 269 47 Other negotiable and readily transferable instruments 6 2,481 2,439 2,511 '2,559 2,482 2,867 2,947 3,099 48 Other 262 60 85 66 111 115 103 83 49 MEMO: Negotiable time certificates of deposit held in custody for foreigners 11,007 '11,254 '11,151 '10,824 10,633 10,709 11,076 11,237 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 • November 1979 3.16 LIABILITIES TO FOREIGNERS Continued 1979 Area and country 1976 1977 1978 Mar. Apr. May June July Aug.f Sept. 1 Total 110,657 126,168 167,087 '166,934 160,248 159,114 167,855 168,957 191,302 2 Foreign countries. 104,943 122,893 164,470 '164,570 157,948 156,357 165,004 165,520 187,750 3 Europe 47,076 60,295 '85,387 '82,011 '77,532 '75,221 79,513 81,510 86,004 4 Austria 346 318 513 524 484 475 449 444 486 5 Belgium-Luxembourg... 2,187 2,531 2,552 2,443 2,359 2,282 2,419 2,493 2.674 6 Denmark 356 770 1,946 2,131 1,596 1,526 1,165 1,560 1,412 7 Finland 416 323 346 361 367 401 457 466 508 8 France 4.876 5,269 9,208 '8,896 9,291 9,755 9,594 9,616 9,985 9 Germany 6,241 7,239 17,286 12,997 9,364 '7,617 8,492 10,724 10,429 10 Greece 403 603 826 671 '660 '678 684 760 695 11 Italy 3,182 6,857 7,674 8,142 8,939 9,751 9,656 8,458 9,676 12 Netherlands 3,003 2,869 2,402 2,766 2,816 2,889 2,628 2,355 2,627 13 Norway 782 944 1,271 1,572 1,477 1,456 1,348 1,263 1,320 14 Portugal 239 273 330 279 231 244 353 303 411 15 Spain 559 619 870 763 '1,077 897 1,21 1,107 1,060 16 Sweden 1,692 2,712 3,121 2,520 2,596 2,524 2,437 2,227 2,368 17 Switzerland 9,460 12,343 18,612 18,563 '15,567 '13,720 15,932 16,744 15,716 18 Turkey 166 130 157 132 110 127 156 193 160 19 United Kingdom 10,018 14,125 14,265 '15,464 '16,150 '16,696 18,079 18,760 22,579 20 Yugoslavia 189 232 254 176 207 184 151 159 149 21 Other Western Europe i. 2,673 1,804 3,346 '3,297 '3,897 '3,686 3,961 3,553 3,400 22 U.S.S.R 51 98 82 59 84 58 62 63 80 23 Other Eastern Europe2., 236 236 325 258 258 254 277 260 270 24 Canada. 4,659 4,607 6,966 '7,991 '8,760 '7,959 6,674 7,610 8.376 25 Latin America and Caribbean 19,132 23,670 31,622 38,067 '36,009 '40,406 44,887 41,398 56,706 26 Argentina 1,534 1,416 1,484 1,534 1,483 1,886 1,891 1,693 1,757 27 Bahamas 2,770 3,596 6,743 13,078 '10,064 '11,682 16,383 13,022 23,912 28 Bermuda 218 321 428 375 351 345 402 339 415 29 Brazil 1,438 1,396 1,125 1,137 1,251 '1,576 1,332 1,294 1,040 30 British West Indies 1.877 3,998 5.991 6,971 6,916 9,313 8,943 8,085 13,367 31 Chile 337 360 399 343 447 368 403 465 459 32 Colombia 1,021 1,221 1,756 1,925 2,079 2,192 2,402 2,292 2.377 33 Cuba 6 6 13 6 7 9 7 7 6 34 Ecuador 320 330 322 330 335 318 391 443 449 35 Guatemala3 416 339 360 318 319 319 320 36 Jamaica3 52 75 80 78 46 104 67 37 Mexico 2,870 2,876 3,417 3,178 3,234 3,215 3,392 3,632 3,658 38 Netherlands Antilles4 158 196 308 318 335 396 414 422 361 39 Panama 1,167 2,331 2.992 2,938 3,368 '2,903 3,125 3,070 3,049 40 Peru 257 287 363 403 360 321 382 425 391 41 Uruguay 245 243 231 236 230 223 248 231 222 42 Venezuela 3,118 2,929 3.821 3,211 3,426 '3,664 2,982 3,920 3,180 43 Other Latin America and Caribbean., 1,797 2,167 1,760 1,669 '1,681 1,601 1,825 1,636 1.675 44 Asia 29,766 30,488 '36,532 '32,778 '31,511 '28,510 29,513 30,614 32,019 China Mainland 48 53 67 280 45 41 46 42 41 Taiwan 990 1,013 502 600 667 '598 739 769 1,027 Hong Kong 894 1,094 1,256 '1,279 1,459 1,496 1,555 1,452 1,571 India 638 961 790 857 929 1,016 940 873 704 Indonesia 340 410 449 479 567 394 409 509 317 Israel 392 559 674 608 673 650 706 621 625 Japan 14,363 14,616 21,927 '18,127 '14,922 12,262 12,572 13,104 13,094 Korea 438 602 795 748 728 '986 809 816 825 Philippines 628 687 644 642 562 '605 690 640 619 Thailand 277 264 427 277 343 302 413 307 330 Middle East oil-exporting countries5., 9,360 8,979 '7,588 '7,632 '9,242 '8,758 9,003 9,651 11,092 Other Asia 1,398 1,250 1,414 1,249 '1,375 '1,402 1,632 1,830 1,773 57 Africa 2,298 2,535 2,886 2,650 2,986 3,056 3,237 3,226 3,818 58 Egypt 333 404 404 329 359 297 306 378 302 59 Morocco 87 66 32 43 34 36 45 35 40 60 South Africa 141 174 168 242 246 206 316 196 174 61 Zaire 36 39 43 50 55 47 56 37 49 62 Oil-exporting countries6. 1,116 1,155 1,525 1,256 1,554 1,523 1,566 1,699 2,441 63 Other Africa 585 698 715 729 738 946 948 881 811 64 Other countries. 2,012 1,297 1,076 1,072 1,149 1,206 1,181 1,162 826 65 Australia 1,905 1,140 838 862 957 991 891 806 621 66 All other 107 158 239 21 192 215 290 355 205 67 Nonmonetary international and regional organizations 5,714 3,274 2,617 2,364 2,300 2,757 2,851 3,437 3,551 68 International 5,157 2,752 1,485 1,189 1,128 1,535 1,738 2,257 2,516 69 Latin American regional 267 278 808 872 872 892 829 917 793 70 Other regional? 290 245 324 303 300 330 284 263 242 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

Nonbank-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 1976 1977 1978 Mar. Apr. May June July Aug.* Sept.p 1 79,301 90,206 115,307 108,210 '105,507 '106,554 115,297 113,417 125,837 127,175 2 Foreign countries 79,261 90,163 115,250 108,164 '105,460 '106,508 115,252 113,369 125,786 127,125 3 Europe 14,776 18,114 r24,235 '21,279 '20,538 '20,267 24,377 24,097 25,752 28,360 4 Austria 63 65 140 177 130 150 169 188 223 191 5 Belgium-Luxembourg 482 561 1,200 '1,792 1,377 '1,328 1,689 1,657 1,483 1,735 6 Denmark 133 173 254 166 '199 168 140 137 141 166 7 Finland 199 172 305 297 250 184 186 220 247 227 8 France 1,549 2,082 3,742 2,921 2,907 2,701 3,517 3,205 3,240 3,740 9 Germany 509 644 900 907 806 792 843 944 890 1,841 10 Greece 279 206 164 188 168 '156 167 130 267 209 11 Italy 993 1,334 1,508 1,297 '1,411 1,440 1,332 1,196 1,474 1,566 12 Netherlands 315 338 680 '590 532 531 516 792 559 630 13 Norway 136 162 299 '205 '240 196 200 181 227 239 14 Portugal 88 175 171 209 208 190 172 235 297 325 15 Spain 745 722 1,110 '904 '803 '925 994 999 969 1,126 16 Sweden 206 218 537 312 300 231 247 401 482 459 17 Switzerland 379 564 1,283 '1,071 878 959 1,071 1,027 714 1,178 18 Turkey 249 360 283 '142 145 119 135 118 148 119 19 United Kingdom 7,033 8,964 10,156 '8,583 '8,361 '8,530 11,272 10,697 12,344 12,384 20 Yugoslavia 234 311 363 448 '472 492 535 541 571 584 21 Other Western Europe i 85 86 122 124 '422 171 187 199 216 247 22 U.S.S.R 485 413 366 319 298 291 300 282 292 326 23 Other Eastern Europe2 613 566 652 '627 '631 713 704 950 969 1,064 24 Canada 3,319 3,355 r5,152 '5,211 '4,801 '4,712 4,899 5,063 5,093 4,780 25 Latin America and Caribbean 38,879 45,850 r57,166 '53,715 '52,585 '53,708 57,328 54,015 62,928 62,494 26 Argentina 1,192 1,478 '2,281 '2,749 '3,095 3,406 3,200 3,339 3,257 3,286 27 Bahamas 15,464 19,858 r21,515 19,490 19,273 '19,996 19,113 16,572 19,932 19,141 28 Bermuda 150 232 184 150 135 198 126 192 167 172 29 Brazil 4,901 4,629 6,251 '6,281 '6,189 '6,271 6,121 6,169 6,550 7,297 30 British West Indies 5,082 6,481 '"9,391 '7,429 5,524 '4,896 9,221 6,525 10,564 9,100 31 Chile 597 675 r972 964 970 1,058 1,089 1,120 1,173 1,339 32 Colombia 675 671 1,012 1,004 945 '1,005 1,089 1,196 1,220 1,259 33 Cuba 13 10 * 4 4 4 4 4 6 4 34 Ecuador 375 517 705 839 903 877 908 916 921 944 35 Guatemala 3 94 89 95 101 95 98 100 106 36 Jamaica3 40 61 63 64 40 47 30 33 37 Mexico 4,822 4,909 r5,423 '5,545 '5,753 6,024 6,424 7,171 7,697 8,395 38 Netherlands Antilles4 140 224 273 '273 213 234 280 392 342 306 39 Panama 1,372 1,410 '3,094 '2,930 '3,549 '3,702 3,600 4,189 4,400 4,524 40 Peru 933 962 918 834 '813 '739 720 727 730 708 41 Uruguay 42 80 52 46 48 61 58 56 66 60 42 Venezuela 1,828 2,318 3,474 '3,515 '3,545 3,601 3,793 3,819 4,043 4,205 43 Other Latin America and Caribbean 1,293 1,394 1,487 1,512 1,468 '1,470 1,447 1,483 1,731 1,615 44 Asia 1199,,220044 1199,,223366 r25,488 '25,037 '24,677 '24,893 25,535 27,138 29,117 28,476 China 45 Mainland 3 10 4 16 20 22 9 20 29 25 46 1,344 1,719 1,499 '1,834 '1,818 1,812 1,882 1,891 1,970 1,936 47 Hong Kong 316 543 1,573 '2,037 '1,730 '1,970 2,105 1,978 1,788 1,832 48 India 69 53 54 52 73 '59 82 43 75 74 49 Indonesia 218 232 143 124 135 138 138 131 156 140 50 755 584 r870 '907 '779 824 842 865 857 882 51 Japan 11,040 9,839 12,686 12,762 '12,134 12,342 12,523 13,908 15,199 14,654 52 Korea 1,978 2,336 '2,282 '2,533 '2,708 '2,940 3,366 3,465 3,612 3,713 53 Philippines 719 594 680 660 710 '697 678 743 797 637 54 Thailand 442 633 758 '765 760 836 895 925 919 1,032 55 Middle East oil-exporting countries 5 1,459 1,746 3,135 1,939 2,437 1,723 1,586 1,784 1,689 1,903 56 Other Asia 863 947 1,804 1,408 1,374 1,531 1,429 1,386 2,026 1,648 57 Africa 2,311 2,518 2,221 '1,966 1,977 '1,971 2,128 2,043 1,969 2,099 58 Egypt 126 119 107 '71 104 '125 178 115 126 120 59 Morocco 27 43 82 66 64 46 37 34 31 23 60 South Africa 957 1,066 860 701 680 719 745 745 730 704 61 Zaire 112 98 164 155 151 151 151 189 151 149 62 Oil-exporting countries 6 524 510 452 455 462 460 478 452 398 563 63 Other 565 682 556 518 516 471 539 508 533 539 64 Other countries 772 1,090 988 '956 882 956 984 1,013 926 916 65 Australia 597 905 877 '825 755 789 779 765 756 743 66 All other 175 186 111 131 127 167 205 248 170 172 67 Nonmonetary international and regional organizations 7 4400 4433 56 46 46 46 45 47 51 50 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 • November 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 rr Mar.r Apr.r Mayr June July Aug. Sept.2' 1 Total 7799,,330011 9900,,220066 111111111222222222666666666,,,,,,,,,333333333999999999222222222 111111111222222222000000000,,,,,,,,,555555555000000000666666666 111111111222222222888888888,,,,,,,,,888888888444444444555555555 111111111111111111555555555,,,,,,,,,333333333000000000777777777 111111111000000000888888888,,,,,,,,,222222222111111111000000000 111000555,,,555000777 111000666,,,555555444 111111111111111111555555555,,,,,,,,,222222222999999999777777777 111111333,,,444111777 111222555,,,888333777 111222777,,,111777555 3 Foreign public borrowers 111111111000000000,,,,,,,,,111111111000000000333333333 111111111000000000,,,,,,,,,777777777666666666333333333 111000,,,999888222 111000,,,555444222 111111111111111111,,,,,,,,,222222222666666666888888888 111111,,,777333777 111222,,,444333666 111333,,,777222999 4 Own foreign offices1 444444444111111111,,,,,,,,,444444444666666666555555555 333333333666666666,,,,,,,,,555555555111111111222222222 333666,,,888555333 333555,,,888888999 333333333777777777,,,,,,,,,333333333444444444777777777 333666,,,222666555 444000,,,222333000 333999,,,666777111 5 Unaffiliated foreign banks 444444444000000000,,,,,,,,,444444444222222222777777777 333333333777777777,,,,,,,,,222222222777777777777777777 333444,,,111777444 333555,,,444111555 444444444111111111,,,,,,,,,555555555111111111222222222 333888,,,888444333 444555,,,111222777 444555,,,999444444 6 Deposits 555555555,,,,,,,,,777777777222222222111111111 666666666,,,,,,,,,333333333555555555888888888 555,,,444333000 555,,,444999888 777777777,,,,,,,,,333333333888888888444444444 666,,,999999000 777,,,999555666 777,,,666333111 7 Other 333333333444444444,,,,,,,,,777777777000000000666666666 333333333000000000,,,,,,,,,999999999222222222000000000 222888,,,777444444 222999,,,999111777 333333333444444444,,,,,,,,,111111111222222222888888888 333111,,,888555333 333777,,,111777000 333888,,,333111333 222222222333333333,,,,,,,,,333333333111111111222222222 222222222333333333,,,,,,,,,666666666555555555777777777 222333,,,444999888 222444,,,777000777 222222222555555555,,,,,,,,,111111111666666666999999999 222666,,,555777222 222888,,,000444444 222777,,,888333111 9 Claims of banks' domestic customers2 111111111111111111,,,,,,,,,000000000888888888555555555 111111111222222222,,,,,,,,,222222222999999999666666666 111111111333333333,,,,,,,,,555555555444444444888888888 10 Deposits 999999999777777777222222222 111111111,,,,,,,,,111111111444444444333333333 111111111,,,,,,,,,444444444333333333888888888 11 Negotiable and readily transferable instruments 3 444444444,,,,,,,,,777777777666666666222222222 555555555,,,,,,,,,555555555111111111111111111 666666666,,,,,,,,,222222222333333333000000000 12 Outstanding collections and other claims4 55,,775566 66,,117766 555555555,,,,,,,,,333333333555555555111111111 555555555,,,,,,,,,666666666444444444111111111 555555555,,,,,,,,,888888888777777777999999999 13 MEMO* Customer liability on acceptances... 111111111444444444,,,,,,,,,999999999111111111888888888 111111111555555555,,,,,,,,,000000000999999999888888888 111111111666666666,,,,,,,,,888888888333333333888888888 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 1111,,667744 1155,,776666 1166,,555500 1177,,445533 1155,,227755 1188,,115566 1188,,003311 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 Maturity; by borrower and area Juner Sept.r Dec.' Mar.r June 1 Total 55,902 60,096 73,633 71,528 77,339 By borrower 2 Maturity of 1 year or less1 44,558 47,230 58,341 55,347 59,763 3 Foreign public borrowers 3,128 3,709 4,579 4,627 4,551 4 All other foreigners 41,430 43,521 53,762 50,720 55,212 5 Maturity of over 1 year* 11,343 12,866 15,292 16,181 17,575 6 Foreign public borrowers 3,243 4,230 5,336 5,935 6,372 7 All other foreigners 8,101 8,635 9,956 10,246 11,204 By area Maturity of 1 year or less 1 8 Europe 9,710 10,513 15,121 12,376 13,998 9 Canada 1,598 1,953 2,670 2,512 2,678 10 Latin American and Caribbean 17,439 18,624 20,912 21,634 22,937 11 Asia 13,831 14,014 17,572 16,993 18,166 12 Africa 1,457 1,535 1,496 1,290 1,423 13 All other2 523 591 569 541 563 Maturity of over 1 year1 14 Europe 2,920 3,102 3,149 3,108 3,484 15 Canada 344 794 1,426 1,456 1,212 16 Latin America and Caribbean., 5,900 6,877 8,469 9,336 10,214 17 Asia 1,297 1,303 1,399 1,471 1,871 18 Africa 631 580 636 629 613 19 Allother2 252 211 214 180 182 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

Nonbank-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 AArreeaa oorr CCoouunnttrryy 11997755 11997766 June Sept. Dec. Mar. June? Sept. Dec. Mar. June 1 167.0 207.7 217.8 226.7 239.4 247.2 245.7 246.7 265.3 263.4 273.6 2 G-10 countries and Switzerland 88.0 100.1 104.1 108.8 115.3 116.6 112.8 113.7 124.9 118.8 124.5 3 Belgium-Luxembourg 5.3 6.1 6.3 7.1 8.4 8.3 8.3 8.4 9.0 9.4 9.2 4 France 8.5 10.0 10.6 10.5 11.0 11.4 11.4 11.7 12.2 11.7 12.8 5 Germany 7.8 8.7 8.2 8.6 9.6 9.0 9.1 9.7 11.4 10.5 10.8 6 Italy 5.2 5.8 6.4 6.0 6.5 6.0 6.4 6.0 6.6 5.7 6.1 7 Netherlands 2.8 2.8 3.1 3.0 3.5 3.4 3.4 3.5 4.4 3.8 4.0 8 1.0 1.2 1.7 1.9 1.9 2.0 2.1 2.2 2.1 2.0 2.0 9 Switzerland 2.4 3.0 3.0 3.3 3.3 4.0 4.1 4.3 5.4 4.5 4.8 10 United Kingdom 36.3 41.5 41.4 44.1 46.5 46.5 45.0 44.4 47.2 46.4 50.2 11 Canada 3.8 5.1 6.4 6.6 5.8 6.9 5.1 4.9 5.9 5.8 5.5 12 Japan 14.9 15.9 17.0 17.6 18.8 19.1 17.9 18.6 20.7 19.0 19.1 13 Other developed countries 10.7 15.1 16.9 18.1 18.6 20.5 19.3 18.7 19.2 18.3 18.8 14 Austria .7 1.2 1.2 1.3 1.3 1.5 1.5 1.5 1.7 1.7 2.2 1 5 .6 1.0 1.4 1.5 1.6 1.6 1.7 1.9 2.0 2.0 2.0 16 .9 1.1 1.1 1.2 1.2 1.2 1.1 1.0 1.2 1.1 1.1 17 1.4 1.7 1.8 2.0 2.2 2.7 2.3 2.2 2.3 2.3 2.2 18 1.4 1.5 1.7 1.8 1.9 1.9 2.1 2.1 2.1 2.1 2.1 19 Portugal .3 .4 .5 .6 .6 .7 .6 .5 .6 .6 .5 70 1.9 2.8 3.2 3.5 3.6 3.6 3.6 3.5 3.4 3.0 3.0 21 .6 1.3 1.4 1.4 1.5 1.5 1.4 1.5 1.5 1.4 1.4 22 Other Western Europe .6 .7 .8 1.2 .9 1.4 1.2 1.0 1.0 1.1 1.2 23 1.2 2.2 2.3 2.3 2.4 2.5 2.4 2.2 2.0 1.7 1.8 24 Australia 1.3 1.2 1.5 1.5 1.4 1.9 1.4 1.3 1.4 1.3 1.3 25 Oil-exporting countries2 6.9 12.6 15.0 16.5 17.6 19.2 19.1 20.4 22.8 22.9 22.6 26 .4 .7 .9 1.1 1.1 1.3 1.4 1.6 1.6 1.5 1.6 27 2.3 4.1 4.6 5.1 5.5 5.5 5.6 6.2 7.2 7.2 7.5 28 1.6 2.2 2.2 2.2 2.2 2.1 1.9 1.9 2.0 1.9 1.9 29 Middle East countries 1.6 4.2 5.5 6.3 6.9 8.3 8.3 8.7 9.5 9.7 9.0 30 African countries 1.0 1.4 1.8 1.9 1.9 2.0 1.9 2.0 2.5 2.6 2.6 31 Non-oil developing countries 34.2 43.1 45.8 47.6 50.0 49.9 48.9 49.5 52.4 53.1 56.1 Latin America 32 Argentina 1.7 1.9 2.1 2.4 2.9 3.0 3.0 2.9 3.0 2.9 3.5 33 8.0 11.1 11.8 11.8 12.7 13.0 13.3 14.0 14.9 14.6 15.0 34 Chile .5 .8 .7 .8 .9 1.1 1.3 1.3 1.6 1.7 1.8 35 Colombia 1.2 1.3 1.2 1.2 1.3 1.3 1.3 1.3 1.4 1.5 1.5 36 9.0 11.7 12.2 12.6 11.9 11.2 11.0 10.7 10.8 10.9 11.0 37 Peru 1.4 1.8 2.0 1.9 1.9 1.7 1.8 1.8 1.7 1.6 1.4 38 2.6 2.7 2.4 2.5 2.7 3.5 3.3 3.4 3.6 3.5 3.3 Asia China 39 * * * * * * * * * . 1 . 1 40 Taiwan 1.7 2.3 2.7 2.9 3.1 2.5 2.4 2.4 2.9 3.1 3.3 41 .2 .2 .2 .3 .3 .3 .2 .3 .2 .2 .2 42 .9 1.0 .8 .7 .9 .8 .7 .7 1.0 1.0 .9 43 Korea (South) 2.4 3.1 3.4 3.6 3.9 3.7 3.6 3.5 3.9 4.2 5.0 44 .3 .5 .7 .7 .7 .6 .6 .6 .6 .6 .7 45 Philippines 1.7 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.8 3.2 3.7 46 Thailand .7 .7 .8 .9 1.7 1.1 1.1 1.1 1.2 1.2 1.4 47 Other Asia .4 .4 .3 .4 .3 .4 • 3 .3 .2 .3 .4 Africa 48 Egypt .4 .4 .4 .4 .3 .3 .3 ..44 .4 ..44 .7 49 Morocco . 1 .2 .3 .4 .5 .4 .5 .5 .6 .6 .5 50 Zaire .3 .2 .3 .3 .3 .3 .2 .2 .2 .2 .2 51 Other Africa4 .5 .6 1.0 1.2 1.2 1.4 1.2 1.3 1.4 1.4 1.5 52 3.7 5.2 5.5 5.5 6.5 6.3 6.4 6.6 6.9 6.7 6.7 53 1.0 1.5 1.5 1.5 1.6 1.4 1.4 1.4 1.3 1.1 .9 54 .6 .8 .9 1.0 1.1 1.2 1.3 1.3 1.5 1.6 1.7 55 Other 2.1 2.8 3.1 3.0 3.8 3.7 3.7 3.9 4.1 4.0 4.1 56 Offshore banking centers 19.4 26.2 25.4 25.3 26.1 29.0 31.1 29.2 30.0 34.1 35.0 57 7.3 11.8 9.5 9.9 9.8 11.3 11.8 11.1 9.9 12.8 13.2 58 .5 . .5 .5 .5 .6 .6 .7 .7 .7 .6 .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 7.3 7.1 60 Netherlands Antilles .6 .6 .5 .6 .7 .7 .6 .6 ..88 .7 .8 61 Panama 2.6 2.7 2.9 2.8 3.1 3.2 3.2 3.1 22..99 3.3 3.4 62 .2 . 1 .2 . 1 .2 .2 .1 . 1 . 1 .1 . 1 63 Hong Kong 1.6 2.3 2.8 3.1 3.7 4.0 4.1 4.0 4.3 4.7 5.1 64 3.8 4.4 4.2 3.9 3.7 4.0 3.8 2.9 3.9 4.1 4.2 65 Others 5 .1 * * .1 .5 .5 .5 .5 .5 .5 .4 66 Miscellaneous and unallocated^ 4.1 5.4 5.1 5.0 5.3 5.7 8.1 8.6 9.1 9.5 9.9 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 • November 1979 3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1979 1979 Country or area 1977 1978 S J e a p n t. . P - Mar. Apr. May June July Aug.f Sept.f Holdings (end of period)4 1 Estimated total1 38,640 44,938 47,529 48,131 47,218 47,494 48,991 49,575 50,199 2 Foreign countries1 33,894 39,817 42,932 43,177 43,055 43,454 44,544 44,979 45,002 3 Europe1 13,936 17,072 20,172 20,593 20,667 21,047 22,213 22,558 22,541 4 Belgium-Luxembourg 19 19 19 19 20 24 24 24 65 5 Germany1 3,168 8,705 10,216 10,812 10,828 10,751 10,781 10,952 10,953 6 Netherlands 911 1,358 1,587 1,637 1,672 1,695 1,655 1,577 1,667 7 Sweden 100 285 360 415 479 484 481 525 550 8 Switzerland 497 977 1,537 1,510 1,458 1,582 1,843 2,048 2,496 9 United Kingdom 88,,888888 5,373 5,991 5,735 5,697 6,016 6,938 6,895 6,193 10 Other Western Europe 334499 354 461 464 513 496 491 538 617 11 Eastern Europe 44 12 Canada 288 152 166 226 216 227 232 233 233 13 Latin America and Caribbean 551 416 418 397 387 387 537 539 539 14 Venezuela 199 144 183 183 183 183 183 183 183 15 Other Latin American and Caribbean. 183 110 72 52 42 42 192 192 192 16 Netherlands Antilles 170 162 162 162 162 162 162 165 165 17 Asia 18,745 21,488 21,488 21,273 21,097 21,103 20,874 20,960 21,000 18 Japan 6,860 11,528 12,729 12,982 13,014 13,040 13,090 12,818 12,789 19 Africa 362 691 691 691 691 691 691 691 691 20 All other 11 -3 -3 -3 -3 -3 -3 -3 -3 21 Nonmonetary international and regional organizations 4,746 5,121 4,597 4,954 4,163 4,040 4,447 4,596 5,197 22 International 4,646 5,089 4,560 4,915 4,114 3,993 4,400 4,551 5,150 23 Latin American regional 100 33 38 38 48 48 48 46 46 Transactions (net purchases, or sales (—), during period) 24 Total1 22,843 6,297 5,261 1,862 602 -913 277 1,497 584 623 25 Foreign countries1 21,130 5,921 5,185 1,968 246 -122 399 1,090 435 23 26 Official institutions 20,377 r3,747 2,159 524 242 -149 298 1,033 515 45 27 Other foreign i 753 '2,175 3,026 1,443 4 27 101 57 -81 -22 28 Nonmonetary international and regional organizations 1,713 375 77 -106 356 -791 -121 407 149 600 MEMO: Oil-exporting countries 29 Middle East 2 4,451 -1,785 -1,546 --3311 --445522 --119900 8 -193 394 72 30 Africa 3 . --118811 332299 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 Apr. May June July Aug. Sept. Oct.p 352 424 367 388 407 326 372 325 347 351 Assets held in custody 66,532 91,962 117,126 99,674 91,327 95,301 99,004 98,794 100,383 97,965 3 Earmarked gold2 16,414 15,988 15,463 15,406 15,381 15,356 15,322 15,296 15,294 15,253 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 11997777 11997788 Jan- Mar. Apr. May June July Aug.f Sept.3' Sept.f U.S. corporate securities STOCKS 1 Foreign purchases 14,155 20,142 15,969 '1,944 '1,615 '1,579 1,860 1,766 2,382 2,074 11,479 17,723 14,730 '1,439 1,520 '1,389 1,794 1,774 2,224 2,023 3 Net purchases, or sales (—) 2,676 2,420 1,239 '505 '95 191 66 -8 158 51 2,661 2,466 1,225 '502 94 191 67 -8 156 58 1,006 1,283 98 104 -2 136 11 -42 -48 -107 40 47 180 33 31 48 41 18 19 -20 291 620 -161 -2 -59 -1 -16 -19 -30 -37 8 Netherlands 22 -22 -96 -19 -10 -7 -15 8 -3 * 152 -585 -234 -12 '-16 18 -3 -52 -87 -64 10 United Kingdom 613 1,230 447 109 52 74 5 -12 97 19 65 74 421 57 30 47 33 30 78 145 12 Latin America and Caribbean 127 151 40 36 22 -18 -28 -17 45 -8 13 Middle East1 1,390 781 433 242 48 20 15 -7 44 41 14 Other Asia 59 187 239 61 -3 9 39 32 34 -12 5 -13 -12 1 -3 -2 -3 -4 — 4 -2 16 Other countries 8 3 6 1 2 -1 1 7 1 17 Nonmonetary international and regional 1155 --4466 1144 3 1 • --11 * 2 -7 BONDS 2 7,739 '7,975 6,216 '593 589 863 1,081 869 729 398 3,560 '5,517 5,442 489 378 922 793 648 673 288 4,179 '2,458 774 '104 210 -59 288 221 56 110 4,083 '2,049 937 '91 106 87 254 222 71 23 1,850 '908 758 '12 139 121 163 159 -5 19 -34 30 -2 13 -2 — 1 8 -34 -3 — 1 -20 68 86 4 19 6 24 — 11 -10 -1 72 '12 -160 -27 -20 -37 -32 -9 -19 -2 94 -100 -14 12 8 -41 — 1 -4 -8 4 27 United Kingdom 1,690 930 800 27 134 151 169 232 24 23 141 102 98 33 6 4 * 8 9 17 29 Latin America and Caribbean 64 '98 79 24 9 7 -10 11 10 -4 30 Middle East1 1,695 810 -115 25 -61 -73 52 40 50 -7 338 131 115 -3 14 28 48 5 7 -4 -6 — 1 2 * * * * * * 1 * 1 * 1 -1 * * • * * 34 Nonmonetary international and regional 9966 409 -164 13 104 -146 34 -1 -14 8877 Foreign securities 35 Stocks, net purchases, or sales (—) -410 527 -458 2 13 67 -18 -67 -100 -338 2,255 3,666 3,278 331 369 554 403 329 377 420 2,665 3,139 3,736 329 356 487 421 396 476 758 38 Bonds, net purchases, or sales (—) -5,096 '-4,018 -3,240 '-30 '-11 '10 -689 -345 -543 -715 39 Foreign purchases 8,040 '11,043 9,078 '1,194 '893 '860 1,011 984 1,575 824 13,136 15,061 12,318 '1,224 '904 '851 1,700 1,330 2,118 1,539 41 Net purchases, or sales ( — ) of stocks and bonds.. -5,506 '-3,491 -3,698 '-28 '2 '77 -707 -412 -643 -1,053 42 Foreign countries -3,949 '-3,314 -2,891 '-11 '-11 '76 -425 -436 -559 -877 -1,100 -40 -1,199 '11 '-165 '-25 -144 -305 -290 -120 -2,404 '-3,238 -2,003 -228 10 85 -221 -178 -128 -854 45 Latin America and Caribbean -82 201 379 '55 55 26 53 30 30 * -97 350 -77 152 84 -14 -114 16 -172 92 47 Africa 2 -441 -9 -8 2 4 4 * — 1 * -267 -146 18 7 2 1 -4 2 2 5 49 Nonmonetary international and regional -1,557 -177 -807 -17 13 1 -282 24 -83 -176 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 • November 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.r Junef Sept. Dec. 1 Total 11110000,,,,000099999999 11111111,,,,000088885555 11111111,,,,888877770000 11112222,,,,777788886666 111111111111111111111111111111111111111111111111111111333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888 111111111111111111111111111111111111111111111111111111333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,666666666666666666666666666666666666666666666666666666888888888888888888888888888888888888888888888888888888333333333333333333333333333333333333333333333333333333 111111111111111111111111111111111111111111111111111111444444444444444444444444444444444444444444444444444444,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,666666666666666666666666666666666666666666666666666666444444444444444444444444444444444444444444444444444444111111111111111111111111111111111111111111111111111111 2 Payable in dollars 9999,,,,333399990000 11110000,,,,222288884444 11111111,,,,000044444444 11111111,,,,999955555555 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666666 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444444444444444444444444444444444444444444444444444444,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777777777777777777777777777777777777333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333333 555555555555555555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111000000000000000000000000000000000000000000000000000000999999999999999999999999999999999999999999999999999999 777777777777777777777777777777777777777777777777777777,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777777777777777777777777777777777777000000000000000000000000000000000000000000000000000000111111111111111111111111111111111111111111111111111111 777777777777777777777777777777777777777777777777777777,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555555111111111111111111111111111111111111111111111111111111 888888888888888888888888888888888888888888888888888888,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,666666666666666666666666666666666666666666666666666666777777777777777777777777777777777777777777777777777777333333333333333333333333333333333333333333333333333333 777777777777777777777777777777777777777777777777777777888888888888888888888888888888888888888888888888888888000000000000000000000000000000000000000000000000000000 666666666666666666666666666666666666666666666666666666222222222222222222222222222222222222222222222222222222777777777777777777777777777777777777777777777777777777 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Canada 666666666666666666666666666666666666666666666666666666555555555555555555555555555555555555555555555555555555333333333333333333333333333333333333333333333333333333 666666666666666666666666666666666666666666666666666666111111111111111111111111111111111111111111111111111111222222222222222222222222222222222222222222222222222222 666666666666666666666666666666666666666666666666666666555555555555555555555555555555555555555555555555555555999999999999999999999999999999999999999999999999999999 41 Latin America 111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000000000333333333333333333333333333333333333333333333333333333111111111111111111111111111111111111111111111111111111 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111111111111111111111111111111111111111111111111111111222222222222222222222222222222222222222222222222222222111111111111111111111111111111111111111111111111111111 46 Mexico 111111111111111111111111111111111111111111111111111111333333333333333333333333333333333333333333333333333333000000000000000000000000000000000000000000000000000000 222222222222222222222222222222222222222222222222222222333333333333333333333333333333333333333333333333333333666666666666666666666666666666666666666666666666666666 222222222222222222222222222222222222222222222222222222000000000000000000000000000000000000000000000000000000333333333333333333333333333333333333333333333333333333 47 Venezuela . 333333333333333333333333333333333333333333333333333333000000000000000000000000000000000000000000000000000000666666666666666666666666666666666666666666666666666666 333333333333333333333333333333333333333333333333333333555555555555555555555555555555555555555555555555555555666666666666666666666666666666666666666666666666666666 333333333333333333333333333333333333333333333333333333222222222222222222222222222222222222222222222222222222333333333333333333333333333333333333333333333333333333 48 Asia 222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999999444444444444444444444444444444444444444444444444444444222222222222222222222222222222222222222222222222222222 222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,666666666666666666666666666666666666666666666666666666333333333333333333333333333333333333333333333333333333222222222222222222222222222222222222222222222222222222 333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000333333333333333333333333333333333333333333333333333333 49 Japan 444444444444444444444444444444444444444444444444444444333333333333333333333333333333333333333333333333333333000000000000000000000000000000000000000000000000000000 444444444444444444444444444444444444444444444444444444111111111111111111111111111111111111111111111111111111222222222222222222222222222222222222222222222222222222 555555555555555555555555555555555555555555555555555555000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 50 Middle East oil-exporting countries2 111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555555555555555555444444444444444444444444444444444444444444444444444444333333333333333333333333333333333333333333333333333333 111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111777777777777777777777777777777777777777777777777777777 111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222 51 Africa 777777777777777777777777777777777777777777777777777777222222222222222222222222222222222222222222222222222222444444444444444444444444444444444444444444444444444444 777777777777777777777777777777777777777777777777777777555555555555555555555555555555555555555555555555555555444444444444444444444444444444444444444444444444444444 888888888888888888888888888888888888888888888888888888999999999999999999999999999999999999999999999999999999444444444444444444444444444444444444444444444444444444 52 Oil-exporting countries3 333333333333333333333333333333333333333333333333333333111111111111111111111111111111111111111111111111111111333333333333333333333333333333333333333333333333333333 333333333333333333333333333333333333333333333333333333444444444444444444444444444444444444444444444444444444555555555555555555555555555555555555555555555555555555 444444444444444444444444444444444444444444444444444444111111111111111111111111111111111111111111111111111111222222222222222222222222222222222222222222222222222222 53 All other4 222222222222222222222222222222222222222222222222222222000000000000000000000000000000000000000000000000000000444444444444444444444444444444444444444444444444444444 222222222222222222222222222222222222222222222222222222333333333333333333333333333333333333333333333333333333999999999999999999999999999999999999999999999999999999 222222222222222222222222222222222222222222222222222222444444444444444444444444444444444444444444444444444444666666666666666666666666666666666666666666666666666666 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 • Millions of dollars, end of period 1978 1979 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997766 11997777 June Sept. Dec. Mar.r June® Sept. Dec. 1 Total 11119999,,,,333355550000 22221111,,,,222299998888 22223333,,,,222222229999 22223333,,,,222266660000 22222222222222222222222222222222222222222222222222222222227777777777777777777777777777777777777777777777777777777777,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111133333333333333333333333333333333333333333333333333333333338888888888888888888888888888888888888888888888888888888888 22222222222222222222222222222222222222222222222222222222229999999999999999999999999999999999999999999999999999999999,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777777777777777777777777777777777777777711111111111111111111111111111111111111111111111111111111114444444444444444444444444444444444444444444444444444444444 22222222222222222222222222222222222222222222222222222222229999999999999999999999999999999999999999999999999999999999,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000000000000044444444444444444444444444444444444444444444444444444444448888888888888888888888888888888888888888888888888888888888 11118888,,,,333300000000 11119999,,,,888888880000 22221111,,,,666666665555 22221111,,,,222299992222 22222222222222222222222222222222222222222222222222222222224444444444444444444444444444444444444444444444444444444444,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111166666666666666666666666666666666666666666666666666666666660000000000000000000000000000000000000000000000000000000000 22222222222222222222222222222222222222222222222222222222226666666666666666666666666666666666666666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999999999933333333333333333333333333333333333333333333333333333333339999999999999999999999999999999999999999999999999999999999 22222222222222222222222222222222222222222222222222222222226666666666666666666666666666666666666666666666666666666666,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111188888888888888888888888888888888888888888888888888888888881111111111111111111111111111111111111111111111111111111111 1111,,,,000055550000 1111,,,,444411118888 1111,,,,555566664444 1111,,,,999966668888 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4444444444444444444444444444444444444444444444444444444444,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999999999966666666666666666666666666666666666666666666666666666666664444444444444444444444444444444444444444444444444444444444 24 Latin America and Caribbean 5555555555555555555555555555555555555555555555555555555555,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111199999999999999999999999999999999999999999999999999999999997777777777777777777777777777777777777777777777777777777777 7777777777777777777777777777777777777777777777777777777777,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555555555555555555555599999999999999999999999999999999999999999999999999999999998888888888888888888888888888888888888888888888888888888888 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777777777777777777777777777777777777777777777777777777777799999999999999999999999999999999999999999999999999999999997777777777777777777777777777777777777777777777777777777777 32 Japan 333333333333333333333333333333333333333333333333333333333300000000000000000000000000000000000000000000000000000000006666666666666666666666666666666666666666666666666666666666 222222222222222222222222222222222222222222222222222222222200000000000000000000000000000000000000000000000000000000006666666666666666666666666666666666666666666666666666666666 222222222222222222222222222222222222222222222222222222222211111111111111111111111111111111111111111111111111111111116666666666666666666666666666666666666666666666666666666666 33 Middle East oil-exporting countries2 11111111111111111111111111111111111111111111111111111111118888888888888888888888888888888888888888888888888888888888 11111111111111111111111111111111111111111111111111111111117777777777777777777777777777777777777777777777777777777777 11111111111111111111111111111111111111111111111111111111117777777777777777777777777777777777777777777777777777777777 34 Africa 111111111111111111111111111111111111111111111111111111111188888888888888888888888888888888888888888888888888888888880000000000000000000000000000000000000000000000000000000000 222222222222222222222222222222222222222222222222222222222200000000000000000000000000000000000000000000000000000000004444444444444444444444444444444444444444444444444444444444 222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222222227777777777777777777777777777777777777777777777777777777777 35 Oil-exporting countries 3 11111111111111111111111111111111111111111111111111111111110000000000000000000000000000000000000000000000000000000000 22222222222222222222222222222222222222222222222222222222226666666666666666666666666666666666666666666666666666666666 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111111111111111111111111111111111111111111111111111111111166666666666666666666666666666666666666666666666666666666669999999999999999999999999999999999999999999999999999999999 39 France 666666666666666666666666666666666666666666666666666666666600000000000000000000000000000000000000000000000000000000007777777777777777777777777777777777777777777777777777777777 444444444444444444444444444444444444444444444444444444444499999999999999999999999999999999999999999999999999999999990000000000000000000000000000000000000000000000000000000000 444444444444444444444444444444444444444444444444444444444477777777777777777777777777777777777777777777777777777777772222222222222222222222222222222222222222222222222222222222 40 Germany . 333333333333333333333333333333333333333333333333333333333399999999999999999999999999999999999999999999999999999999992222222222222222222222222222222222222222222222222222222222 555555555555555555555555555555555555555555555555555555555500000000000000000000000000000000000000000000000000000000001111111111111111111111111111111111111111111111111111111111 444444444444444444444444444444444444444444444444444444444422222222222222222222222222222222222222222222222222222222220000000000000000000000000000000000000000000000000000000000 41 Netherlands 222222222222222222222222222222222222222222222222222222222255555555555555555555555555555555555555555555555555555555556666666666666666666666666666666666666666666666666666666666 222222222222222222222222222222222222222222222222222222222277777777777777777777777777777777777777777777777777777777771111111111111111111111111111111111111111111111111111111111 333333333333333333333333333333333333333333333333333333333300000000000000000000000000000000000000000000000000000000003333333333333333333333333333333333333333333333333333333333 42 Switzerland 222222222222222222222222222222222222222222222222222222222211111111111111111111111111111111111111111111111111111111113333333333333333333333333333333333333333333333333333333333 222222222222222222222222222222222222222222222222222222222244444444444444444444444444444444444444444444444444444444448888888888888888888888888888888888888888888888888888888888 222222222222222222222222222222222222222222222222222222222244444444444444444444444444444444444444444444444444444444443333333333333333333333333333333333333333333333333333333333 43 United Kingdom... . 888888888888888888888888888888888888888888888888888888888800000000000000000000000000000000000000000000000000000000002222222222222222222222222222222222222222222222222222222222 666666666666666666666666666666666666666666666666666666666688888888888888888888888888888888888888888888888888888888881111111111111111111111111111111111111111111111111111111111 777777777777777777777777777777777777777777777777777777777711111111111111111111111111111111111111111111111111111111112222222222222222222222222222222222222222222222222222222222 44 Canada 1111111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111100000000000000000000000000000000000000000000000000000000002222222222222222222222222222222222222222222222222222222222 1111111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111113333333333333333333333333333333333333333333333333333333333 1111111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,111111111111111111111111111111111111111111111111111111111144444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444 45 Latin America and Caribbean 2222222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,555555555555555555555555555555555555555555555555555555555533333333333333333333333333333333333333333333333333333333335555555555555555555555555555555555555555555555555555555555 2222222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,333333333333333333333333333333333333333333333333333333333388888888888888888888888888888888888888888888888888888888882222222222222222222222222222222222222222222222222222222222 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222222222222222222222222222222222222222222222222222222222244444444444444444444444444444444444444444444444444444444441111111111111111111111111111111111111111111111111111111111 111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111118888888888888888888888888888888888888888888888888888888888 48 Brazil 666666666666666666666666666666666666666666666666666666666622222222222222222222222222222222222222222222222222222222224444444444444444444444444444444444444444444444444444444444 444444444444444444444444444444444444444444444444444444444499999999999999999999999999999999999999999999999999999999990000000000000000000000000000000000000000000000000000000000 555555555555555555555555555555555555555555555555555555555500000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 49 British West Indies . 9999999999999999999999999999999999999999999999999999999999 11111111111111111111111111111111111111111111111111111111110000000000000000000000000000000000000000000000000000000000 22222222222222222222222222222222222222222222222222222222225555555555555555555555555555555555555555555555555555555555 50 Mexico . 555555555555555555555555555555555555555555555555555555555511111111111111111111111111111111111111111111111111111111113333333333333333333333333333333333333333333333333333333333 444444444444444444444444444444444444444444444444444444444488888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888888 555555555555555555555555555555555555555555555555555555555588888888888888888888888888888888888888888888888888888888882222222222222222222222222222222222222222222222222222222222 51 Venezuela 222222222222222222222222222222222222222222222222222222222299999999999999999999999999999999999999999999999999999999993333333333333333333333333333333333333333333333333333333333 222222222222222222222222222222222222222222222222222222222277777777777777777777777777777777777777777777777777777777773333333333333333333333333333333333333333333333333333333333 222222222222222222222222222222222222222222222222222222222299999999999999999999999999999999999999999999999999999999995555555555555555555555555555555555555555555555555555555555 52 Asia . 3333333333333333333333333333333333333333333333333333333333,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000000000000088888888888888888888888888888888888888888888888888888888887777777777777777777777777777777777777777777777777777777777 2222222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,777777777777777777777777777777777777777777777777777777777755555555555555555555555555555555555555555555555555555555557777777777777777777777777777777777777777777777777777777777 2222222222222222222222222222222222222222222222222222222222,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,999999999999999999999999999999999999999999999999999999999988888888888888888888888888888888888888888888888888888888885555555555555555555555555555555555555555555555555555555555 53 Japan. 999999999999999999999999999999999999999999999999999999999977777777777777777777777777777777777777777777777777777777778888888888888888888888888888888888888888888888888888888888 888888888888888888888888888888888888888888888888888888888899999999999999999999999999999999999999999999999999999999995555555555555555555555555555555555555555555555555555555555 1111111111111111111111111111111111111111111111111111111111,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000008888888888888888888888888888888888888888888888888888888888 54 Middle East oil-exporting countries2 777777777777777777777777777777777777777777777777777777777711111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 666666666666666666666666666666666666666666666666666666666677777777777777777777777777777777777777777777777777777777770000000000000000000000000000000000000000000000000000000000 666666666666666666666666666666666666666666666666666666666699999999999999999999999999999999999999999999999999999999991111111111111111111111111111111111111111111111111111111111 55 Africa .. .. 444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444449999999999999999999999999999999999999999999999999999999999 444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444446666666666666666666666666666666666666666666666666666666666 444444444444444444444444444444444444444444444444444444444499999999999999999999999999999999999999999999999999999999990000000000000000000000000000000000000000000000000000000000 56 Oil-exporting countries 3 111111111111111111111111111111111111111111111111111111111133333333333333333333333333333333333333333333333333333333337777777777777777777777777777777777777777777777777777777777 111111111111111111111111111111111111111111111111111111111133333333333333333333333333333333333333333333333333333333332222222222222222222222222222222222222222222222222222222222 111111111111111111111111111111111111111111111111111111111144444444444444444444444444444444444444444444444444444444440000000000000000000000000000000000000000000000000000000000 57 All other* 111111111111111111111111111111111111111111111111111111111188888888888888888888888888888888888888888888888888888888887777777777777777777777777777777777777777777777777777777777 222222222222222222222222222222222222222222222222222222222200000000000000000000000000000000000000000000000000000000003333333333333333333333333333333333333333333333333333333333 111111111111111111111111111111111111111111111111111111111199999999999999999999999999999999999999999999999999999999998888888888888888888888888888888888888888888888888888888888 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 • November 1979 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Oct. 31,1979 Rate on Oct. 31,1979 Rate on Oct. 31,1979 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective A A r u g s e t n r t i i a n . a .. 1 3 8 . . 7 0 5 J F a e n b . . 1 1 9 9 7 7 2 9 F G r e a r n m c a e ny, Fed. Rep. of. 9 5 . . 5 0 J A u u ly g . 1 1 9 9 7 7 7 9 N Sw or e w de a n y 7 8. . 0 0 S F e e p b t . . 1 1 9 9 7 7 9 8 Belgium. . 10.0 Oct. 1979 Italy 12.0 Oct. 1979 Switzerland 1.0 Feb. 1978 Brazil 33.0 Nov. 1978 Japan 5.25 July 1979 United Kingdom 14.0 June 1979 Canada.. 14.0 Oct. 1979 Mexico 4.5 June 1942 Venezuela 7.5 July 1978 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 CCoouunnttrryy,, oorr ttyyppee 11997766 11997777 11997788 May June July Aug. Sept. Oct. 5.58 6.03 8.74 10.75 10.52 10.87 11.53 12.61 14.59 2 United Kingdom 11.35 8.07 9.18 11.76 13.02 13.87 14.06 14.11 14.12 9.39 7.47 8.52 11.26 11.17 11.29 11.78 11.89 13.34 4.19 4.30 3.67 5.89 6.40 6.77 7.04 7.82 8.84 1.45 2.56 0.74 1.54 1.51 1.19 1.67 1.94 2.57 6 Netherlands 7.02 4.73 6.53 7.82 8.55 9.53 9.51 9.82 10.09 7 France 8.65 9.20 8.10 7.63 8.63 9.90 10.85 11.67 12.14 8 Italy 16.32 14.26 11.40 11.37 11.27 11.46 11.50 11.51 12.71 10.25 6.95 7.14 8.16 9.09 11.18 11.42 11.88 12.99 7.70 6.22 4.75 5.25 5.46 6.26 7.00 7.00 7.01 NOTE. Rates are for 3-month interbank loans except for the following: francs and over; and Japan, loans and discounts that can be called after Canada, finance company paper ; Belgium, time deposits of 20 million being held over a minimum of two month-ends. 3.28 FOREIGN EXCHANGE RATES Cents per unit of foreign currency 1979 Country/currency 11997766 11997777 11997788 May June July Aug. Sept. Oct. 1 Australia/dollar 122.15 110.82 114.41 110.57 111.11 112.83 112.83 112.63 111.31 2 Austria/schilling 5.5744 6.0494 6.8958 7.1222 7.2081 7.4628 7.4786 7.7211 7.7570 3 Belgium/franc 2.5921 2.7911 3.1809 3.2732 3.3048 3.4240 3.4140 3.4684 3.4656 4 Canada/dollar 101.41 94.112 87.729 86.534 85.296 85.920 85.425 85.814 85.084 5 Denmark/krone 16.546 16.658 18.156 18.562 18.401 19.072 18.964 19.279 19.110 6 Finland/markka 25.938 24.913 24.337 24.974 25.250 26.040 26.075 26.242 26.483 7 France/franc 20.942 20.344 22.218 22.691 22.914 23.535 23.491 23.826 23.809 8 Germany/deutsche mark... 39.737 43.079 49.867 52.422 53.084 54.817 54.666 55.758 55.884 9 India/rupee 11.148 11.406 12.207 12.066 12.317 12.651 12.484 12.289 12.159 10 Ireland/pound 180.48 174.49 191.84 198.43 200.01 206.79 205.79 209.18 208.28 11 Italy/lira .12044 .11328 .11782 .11744 .11828 .12192 .12219 .12326 .12112 12 Japan/yen .33741 .37342 .47981 .45797 .45750 .46189 .45890 .44963 .43405 13 Malaysia/ringgit 39.340 40.620 43.210 44.934 45.474 46.422 46.363 46.382 46.074 14 Mexico/peso 6.9161 4.4239 4.3896 4.3805 4.3767 4.3767 4.3804 4.3858 4.3825 15 Netherlands/guilder 37.846 40.752 46.284 48.132 48.374 49.821 49.805 50.635 50.379 16 New Zealand/dollar 99.115 96.893 103.64 104.37 103.29 102.04 101.40 100.28 98.564 17 Norway/krone 18.327 18.789 19.079 19.270 19.398 19.824 19.877 20.080 20.143 18 Portugal/escudo 3.3159 2.6234 2.2782 2.0214 2.0192 2.0551 2.0332 2.0297 1.9992 19 South Africa/rand 114.85 114.99 115.01 118.22 118.31 118.46 119.38 119.91 120.79 20 Spain/peseta 1.4958 1.3287 1.3073 1.5131 1.5131 1.5118 1.5132 1.5135 1.5117 21 Sri Lanka/rupee 11.908 11.964 6.3834 6.4239 6.4059 6.3786 6.4174 6.4126 6.4000 22 Sweden/krona 22.957 22.383 22.139 22.755 23.028 23.687 23.693 23.860 23.747 23 Switzerland/franc 40.013 41.714 56.283 57.894 58.884 60.650 60.349 62.087 61.350 24 United Kingdom/pound... 180.48 174.49 191.84 205.87 211.19 225.98 223.68 219.66 214.38 MEMO: 25 United States/dollar1 105.57 103.31 92.39 90.31 89.56 86.93 87.24 86.73 87.67 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

Time and Savings Deposits A69 4.10 TIME AND SAVINGS DEPOSITS Held by Insured Commercial Banks on Recent Survey Dates Deposits Number of issuing banks Type of deposits, denomination, Millions of dollars Percentage change and original maturity Jan. 31, Apr. 25, July 25, Jan. 31, Apr. 25, July 25, Jan. 31- 1979 1979 1979 1979 1979 1979 Apr. 25 Total time and savings deposits 14,269 14,285 14,206 613,147 615,427 621,863 .4 Savings 14,269 14,285 14,206 214,791 216,901 222,721 1.0 Holder Individuals and nonprofit organizations 14,269 14,285 14,206 200,193 202,133 207,264 1.0 Partnerships and corporations operated for profit (other than commercial banks) 9,735 9,684 10,065 10,475 10,255 10,968 -2.1 Domestic governmaent units 8,050 8,039 8,096 3,991 4,386 4,190 9.9 All other 1,244 1,474 1,605 133 126 299 -5.0 Interest-bearing time deposits, less than $100,000— 14,179 14,191 14,113 190,314 201,067 205,253 5.7 Holder Domestic governmental units1 10,539 10,506 10,269 3,252 2,928 2,569 -10.0 30 up to 90 days 4,636 5,220 5,028 662 595 528 -10.0 90 up to 180 days 7,716 7,750 7,168 1,245 890 812 -28.5 180 days up to 1 year 4,752 4,749 3,665 367 537 387 46.4 1 year and over 8,379 8,424 7,969 979 906 842 -7.5 Other than domestic governmental units1 14,179 14,110 14,032 151,579 145,433 135,972 -4.1 30 up to 90 days 5,104 5,187 4,692 3,758 3,144 2,742 -16.4 90 up to 180 days 11,236 11,065 10,771 25,606 25,156 22,758 -1.8 180 days up to 1 year 8,321 8,447 8,357 3,350 3,476 2,678 3.8 1 up to 2% years 13,765 13,840 13,762 28,349 25,257 22,743 -10.9 4 2 1/ u 2 p u t p o t 6 o y 4 e a y r e s a rs 1 13 3 , , 4 0 1 0 6 2 1 13 2 , , 4 8 6 9 7 2 1 1 2 3 , , 8 4 1 8 9 2 4 1 8 6 , , 2 4 7 2 3 0 4 1 6 5 , , 3 6 6 2 7 6 4 1 4 4 , , 5 2 3 1 2 2 - -3 4 . . 9 8 6 up to 8 years 11,470 11,693 11,599 23,071 23,406 23,217 1.5 8 years and over 7,909 8,569 8,635 2,753 3,002 3,091 9.0 IRA and Keogh Plan time deposits, 3 years or more, 10,015 10,209 10,433 3,533 4,159 4,376 17.7 Money market certificates, $10,000 or more, exactly 6 months 12,228 12,395 12,868 31,949 48,547 62,336 52.0 Interest-bearing time deposits, $100, 000 or more 11,875 11,973 11,654 202,807 191,664 187,156 -5.5 Non-interest-bearing time deposits 1,604 1,489 1,263 4,379 4,248 4,504 -3.0 Less than $100,000 1,254 1,163 944 658 826 921 25.5 $100,000 or more 745 663 663 3,721 3,422 3,583 -8.0 Club accounts (Christmas savings, vacation, and the like) 9,193 9,334 9,407 857 ,548 2,229 80.7 1. Excludes all money market certificates, IRAs, and Keogh Plan banks. However, small amounts of deposits held at banks that had disaccounts. continued issuing certain types of deposits are included in the amounts outstanding. NOTE. All banks that had either discontinued offering or never offered Details may not add to totals because of rounding. certain types of deposits as of the survey date are not counted as issuing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • November 1979 4.11 SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS Held by Insured Commercial Banks on July 25, 1979, Compared with Previous Survey, by Type of Deposit, by Most Common Rate Paid on New Deposits in Each Category, and by Size of Bank Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) DDeeppoossiitt ggrroouupp,, oorriiggiinnaall All banks All banks maturity, and distribution of deposits by Less than 100 100 and over Less than 100 100 and over most common rate July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, 1979 1979 1979 1979 1979 1979 1979 1979 1979 1979 1979 1979 Amount of deposits (in millions of dollars). Number of banks, or percentage distribution or percentage distribution Savings deposits Individuals and nonprofit organizations Issuing banks 14,206 14,285 13,055 13,130 1,151 1,155 207,264 202,133 78,950 75,826 128,314 126,307 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less 5.0 10.1 4.8 10.2 7.6 8.9 5.8 8.3 4.2 9.6 6.7 7.6 4.51-5.00 22.6 89.9 23.2 89.8 15.8 91.1 17.5 91.7 18.7 90.4 16.8 92.4 5.01-5.25 72.4 (2) 72.0 (2) 76.6 (2) 76.7 (2) 77.1 (2) 76.4 (2) MEMO : Paying ceiling rate1 72.4 89.9 72.0 89.8 76.6 91.1 76.7 91.7 77.1 90.4 76.4 92.4 Partnerships and corporations Issuing banks 10,055 9,684 8,949 8,559 1,106 1,125 10,934 10,255 3,638 3,150 7,295 7,105 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less 1.2 4.4 1.1 4.6 2.4 2.7 2.8 3.9 1.1 4.3 3.7 3.7 4.51-5.00 21.1 95.6 21.7 95.4 16.1 97.3 18.4 96.1 19.3 95.7 18.0 96.3 5.01-5.25 77.7 (2) 77.2 (2) 81.5 (2) 78.8 (2) 79.7 (2) 78.3 (2) MEMO : Paying ceiling rate1, , 77.7 95.6 77.2 95.4 81.5 97.3 78.8 96.1 79.7 95.7 78.3 96.3 Domestic governmental units Issuing banks 8,095 8,038 7,259 7,215 835 823 4,189 4,386 2,342 2,330 1,848 2,056 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less 4.0 7.9 4.3 8.6 1.9 1.7 2.1 3.7 2.8 6.3 1.3 .8 4.51-5.00 20.1 92.1 20.4 91.4 17.4 98.3 17.7 96.3 14.6 93.7 21.8 99.2 5.01-5.25 75.9 (2) 75.3 (2) 80.7 (2) 80.1 (2) 82.6 (2) 77.0 (2) MEMO : Paying ceiling rate1,, , 75.9 91.8 75.3 91.0 80.7 98.3 80.1 96.2 82.6 93.6 77.0 99.2 All other Issuing banks 1,602 1,467 1,425 1,299 176 168 290 123 112 51 178 72 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less 9.4 9.6 10.1 10.6 4.0 2.1 1.2 .9 .9 .6 1.4 1.2 4.51-5.00 17.1 90.4 17.4 89.4 14.5 97.9 23.3 99.1 38.1 99.4 14.0 98.8 5.01-5.25 73.5 (2) 72.5 (2) 81.5 (2) 75.4 (2) 60.9 (2) 84.6 (2) MEMO : Paying ceiling rate1 73.5 90.4 72.5 89.4 81.5 97.9 75.4 99.1 60.9 99.4 84.6 98.8 Time deposits less than $100,000 Domestic governmental units 30 up to 90 days Issuing banks 5,028 5,219 4,346 4,530 682 690 528 595 352 412 175 183 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less 51.3 59.2 49.6 58.1 61.9 66.7 37.1 42.8 37.2 40.6 36.9 47.7 5.01-5.50 22.7 14.4 24.2 15.4 12.7 8.4 23.0 12.5 29.9 16.4 9.1 3.7 5.51-8.00 26.1 26.4 26.2 26.6 25.4 24.9 39.9 44.7 32.9 43.0 53.9 48.7 MEMO : Paying ceiling rate1 17.6 15.3 17.2 14.6 20.6 19.7 28.1 24.9 20.0 17.3 44.6 41.7 90 up to 180 days Issuing banks 7,168 7,621 6,383 6,786 785 836 812 876 529 581 283 295 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less 8.5 14.5 9.2 14.8 3.4 12.3 3.3 5.3 4.6 5.1 .7 5.7 5.01-5.50 72.5 67.1 72.3 66.9 74.2 69.1 81.0 71.9 80.2 70.0 82.4 75.7 5.51-8.00 18.9 18.3 18.5 18.3 22.3 18.6 15.7 22.8 15.1 24.9 16.8 18.6 MEMO : Paying ceiling rate1 14.6 12.2 14.2 12.0 17.4 14.1 10.8 18.0 8.3 19.4 15.6 15.1 180 days up to 1 year Issuing banks 3,665 4,712 3,040 4,035 624 677 387 536 231 371 156 165 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less 1.3 9.5 1.1 9.6 2.4 8.7 .9 .8 1 .5 2.0 1.4 5.01-5.50 72.5 61.2 73.7 61.2 66.5 61.3 68.1 49.2 62*. 5 39.4 76.2 71.1 5.51-8.00 26.2 29.3 25.1 29.2 31.2 30.0 31.1 50.0 37.4 60.0 21.8 27.5 MEMO : Paying ceiling rate1 12.7 12.7 10.7 11.4 22.3 20.6 22.3 38.3 23.9 44.3 19.8 24.7 1 year and over Issuing banks 7,934 8,423 7,156 7,606 778 817 839 906 720 776 119 130 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 5.50 or less 3.3 4.4 3.2 4.1 4.7 6.8 7.2 6.1 7.3 6.2 6.1 5.9 5.51-6.00 60.0 57.6 59.6 57.2 63.6 61.7 53.9 51.3 54.1 50.6 52.4 55.6 6.01-8.00 36.7 38.0 37.2 38.7 31.8 31.5 38.9 42.5 38.5 43.2 41.5 38.5 MEMO: Paying ceiling rate1 7.0 7.8 6.5 7.5 11.8 11.3 9.5 9.9 7.2 7.7 23.6 23.1 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Time and Savings Deposits A71 4.11 SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS Continued Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) DDDeeepppooosssiiittt gggrrrooouuuppp,,, ooorrriiigggiiinnnaaalll AAllll bbaannkkss AAllll bbaannkkss mmmaaatttuuurrriiitttyyy,,, aaannnddd dddiiissstttrrriiibbbuuu--tttiiiooonnn ooofff dddeeepppooosssiiitttsss bbbyyy Less than 100 100 and over Less than 100 100 and over mmmooosssttt cccooommmmmmooonnn rrraaattteee July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, 1979 1979 1979 1979 1979 1979 1979 1979 1979 1979 1979 1979 Amount of deposits (in millions of dollars), Number of banks, or percentage distribution or percentage distribution Time deposits less than $100,000 (cont.) Other than domestic governmental units 30 up to 90 days Issuing banks 4,688 5,178 3,786 4,249 903 929 2,733 3,143 514 660 2,219 2,483 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 4.50 or less 1.6 3.5 1.6 3.7 1.4 2.5 1.5 1.8 (2) .7 1.9 2.1 4.51-5.00 98.4 96.5 98.4 96.3 98.6 97.5 98.5 98.2 100.0 99.3 98.1 97.9 MEMO: Paying ceiling rate1 98.4 96.5 98.4 96.3 98.5 97.5 98.4 98.2 100.0 99.3 98.0 97.9 90 up to 180 days Issuing banks 10,771 11,065 9,631 9,917 1,140 1,148 22,758 25,156 8,697 9,922 14,061 15,234 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less 6.3 7.9 7.0 8.5 .8 2.2 2.8 3.9 1.4 5.4 3.6 2.9 5.01-5.50 93.7 92.1 93.0 91.5 99.2 97.8 97.2 96.1 98.6 94.6 96.4 97.1 MEMO: Paying ceiling rate1 91.9 91.4 91.1 90.7 98.3 97.6 95.6 95.5 98.1 94.6 94.0 96.2 180 days up to 1 year Issuing banks 8,291 8,420 7,394 7,503 897 917 2,670 3,467 1,457 1,731 1,213 1,736 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 5.00 or less 5.0 7.7 5.3 8.2 3.2 3.4 1.1 15.0 1.7 29.4 .4 .6 5.01-5.50 95.0 92.3 94.7 91.8 96.8 96.6 98.9 85.0 98.3 70.6 99.6 99.4 MEMO: Paying ceiling rate1...., 95.0 92.3 94.7 91.8 96.8 96.6 98.9 85.0 98.3 70.6 99.6 99.4 1 up to 2V£ years Issuing banks 13,762 13,837 12,616 12,690 1,146 1,147 22,743 25,255 14,507 16,092 8,236 9,163 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 5.50 or less 1.0 3.6 1.0 3.9 1.1 .8 .9 2.1 .3 3.1 1.9 .3 5.51-6.00 99.0 96.4 99.0 96.1 98.9 99.2 99.1 97.9 99.7 96.9 98.1 99.7 MEMO: Paying ceiling rate1 98.6 96.1 98.8 95.9 97.2 98.0 98.6 97.5 99.6 96.8 96.8 98.6 2 Vi up to 4 years Issuing banks 12,757 12,859 11,626 11,723 1,132 1,136 14,172 15,620 8,130 9,172 6,042 6,448 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 6.00 or less 2.0 3.2 2.0 3.4 1.3 1.2 3.1 2.9 5.1 4.8 .4 .3 6.01-6.50 98.0 96.8 98.0 96.6 98.7 98.8 96.9 97.1 94.9 95.2 99.6 99.7 MEMO: Paying ceiling rate1.... 97.3 96.6 97.3 96.6 97.6 97.2 96.0 96.8 93.8 95.2 99.0 99.1 4 up to 6 years Issuing banks 13,482 13,467 12,359 12,336 1,123 1,131 44,532 46,367 24,542 25,554 19,990 20,813 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 7.00 or less 7.5 8.9 7.7 9.1 5.9 6.7 5.2 7.6 5.5 9.1 4.7 5.9 7 7 . . 0 2 1 6 - - 7 7 . . 2 6 5 0 8 4 8 . . 5 0 ( 9 2 1 ) . 1 8 4 8 . . 1 3 ( 9 2 0 ) . 9 8 9 4 . . 4 7 ( 9 2 3 ) . 3 8 8 6 . . 8 1 ( 9 2 2 ) . 4 8 5 8 . . 7 7 9 ( 2 0 ) . 9 8 1 2 2 . . 8 5 ( 9 2 4 ) . 1 MEMO: Paying ceiling rate1. 3.4 90.6 2.9 90.5 8.4 92.5 7.3 91.9 4.0 90.2 11.4 94.0 6 up to 8 years Issuing banks 11,521 11,612 10,437 10,529 1,084 1,083 23,178 23,340 9,913 10,073 13,264 13,267 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 7.25 or less 2.8 3.1 2.6 3.2 3.9 2.8 1.7 1.4 .3 .8 2.8 1.9 7 7 . . 5 2 1 5 - - 7 7 . . 6 5 0 0 9 2 5 . . 3 0 ( 9 2 6 ) . 9 9 2 5 . . 2 2 ( 9 2 6 ) . 8 92 3 . . 9 2 ( 9 2 7 ) . 2 9 4 4. . 1 2 ( 9 2 8 ) . 6 98 1 . . 6 1 99.2 90 6 . . 7 5 ( 9 2 8 ) . 1 MEMO: Paying ceiling rate1.... 2.3 96.8 2.2 96.8 3.2 96.4 4.2 98.6 1.1 99.2 6.5 98.1 8 years and over Issuing banks 8,631 8,560 7,641 7,607 991 953 3,091 2,964 1,102 1,142 1,989 1,822 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 7.50 or less 2.5 3.8 1.9 2.7 7.7 12.1 12.3 16.0 .3 5.7 18.9 22.5 7.51-7.75 97.5 96.2 98.1 97.3 92.3 87.9 87.7 84.0 99.7 94.3 81.1 77.5 MEMO: Paying ceiling rate1.... 97.4 96.2 98.1 97.3 91.4 87.6 86.7 84.0 99.7 94.3 79.4 77.5 IRA and Keogh Plan time deposits, 3 years or more Issuing banks 10,433 10,205 9,377 9,140 1,056 1,064 4,376 4,124 1,636 1,615 2,740 2,508 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 6.00 or less 2.6 3.8 2.8 4.0 1.6 1.9 .6 .8 1.0 1.5 .4 .4 6.01-7.00 5.6 5.1 5.9 5.3 2.8 3.5 1.5 2.6 1.7 2.8 1.4 2.5 7.01-7.50 23.4 26.3 24.5 27.4 13.7 17.3 12.5 14.5 17.2 19.1 9.7 11.6 7.51-8.00 68.4 64.8 66.9 63.4 81.9 77.3 85.4 82.0 80.2 76.6 88.5 85.5 MEMO: Paying ceiling rate1.... 53.9 50.7 52.2 49.1 68.7 64.4 73.6 69.7 66.6 63.7 77.8 73.7 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Special Tables • November 1979 4.11 SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS Continued Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) Deposit group, original All banks All banks maturity, and distribution of deposits by Less than 100 100 and over Less than 100 100 and over most common rate July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, July 25, Apr. 25, 1979 1979 1979 1979 1979 1979 1979 1979 1979 1979 1979 1979 Amount of deposits (in millions of dollars), Number of banks, or percentage distribution or percentage distribution Time deposits less than $100,000 (cont.) Money market certificates, $20,000 or more, 6 months Issuing banks 12,868 12,395 11,722 11,257 1,146 1,138 62,336 48,547 27,392 21,188 34,945 27,359 Distribution, total 100 100 100 100 100 100 100 100 100 100 100 100 8 8 . . 0 0 0 1 - o 8 r .7 l 4 e ss . . 7 3 2 1 . . 2 9 . . 8 3 2 2. . 4 0 ( ( 2 2) ) . . 4 3 (2).a . . 8 2 (2).4 1 . . 3 2 ( ( 2 2) ) . . 1 4 8.75-9.00 4.3 15.2 4.6 16.2 1.7 6.1 1.0 7.6 1.1 8.7 1.0 6.8 9.01-9.26 94.7 80.7 94.3 79.5 98.3 93.1 98.8 91.4 98.5 89.8 99.0 92.7 MEMO: Paying ceiling rate1 75.8 74.4 76.1 72.7 72.4 91.5 72.0 88.7 83.3 85.0 63.2 91.5 Club accounts Issuing banks 9,407 9,334 8,600 8,515 819 2,175 1,521 948 654 1,226 867 Di 0 st .0 ri 0 b ution, total 1 4 0 1 0 . 3 1 4 0 1 0 . 1 1 4 0 3 0 .0 1 4 0 2 0 . 8 1 2 0 2 0 . 9 1 2 0 3 0 .2 10 1 0 9 .8 1 1 00 9 .7 1 2 0 8 0 . 1 1 2 0 9 0 .3 10 1 0 3 .4 10 1 0 2 .4 0.01-4.00 18.1 18.7 18.3 18.9 15.5 16.5 18.3 18.3 25.0 24.7 13.2 13.4 4.01-4.50 6.8 7.2 6.8 7.2 6.9 6.7 13.0 13.7 13.1 14.1 12.9 13.5 4.51-5.50 33.8 33.1 31.9 31.1 54.6 53.6 48.9 48.3 33.8 31.9 60.5 60.7 1. See table 1.16, page A10, for the ceiling rates that existed at the as issuing banks. Moreover, the small amounts of deposits held at banks time of each survey. Effective July 1, 1979, commercial banks are author- that had discontinued issuing deposits are not included in the amounts ized to offer variable ceiling accounts with no required minimum outstanding. Therefore, the deposit amounts shown in table 4.10 may denomination and with maturities of 4 years or more. In July the ceiling on exceed the deposit amounts shown in this table. such accounts was 7.60 percent. The most common interest rate for each instrument refers to the stated 2. Less than .05 percent. rate per annum (before compounding) that banks paid on the largest dollar volume of deposit inflows during the 2-week period immediately NOTE. All banks that either had discontinued offering or had never preceeding the survey date. offered particular types of deposits as of the survey date are not counted Details may not add to totals because of rounding. 4.12 AVERAGE OF MOST COMMON INTEREST RATES PAID on Various Categories of Time and Savings Deposits at Insured Commercial Banks, July 25, 1979 Bank size (total deposits in millions of dollars) TTyyppee ooff ddeeppoossiitt,, hhoollddeerr,, aanndd oorriiggiinnaall mmaattuurriittyy All size Less 20 up 50 up 100 up 500 up 1,000 groups than 20 to 50 to 100 to 500 to 1,000 and over Savings and small-denomination time deposits 6.25 6.31 6.43 6.29 6.22 6.10 6.15 Savings, total 5.15 5.13 5.19 5.14 5.14 5.09 5.16 Individuals and nonprofit organizations 5.15 5.12 5.19 5.14 5.14 5.08 5.16 Partnerships and corporations 5.17 5.21 5.20 5.17 5.17 5.16 5.14 Domestic governmental units 5.17 5.14 5.21 5.19 5.18 5.19 5.11 All other 5.01 5.08 5.14 5.15 4.81 5.02 5.18 Other time deposits in denominations of less than $100,000, total.. 6.63 6.51 6.71 6.68 6.66 6.56 6.58 Domestic governmental units, total 6.14 5.95 6.20 6.42 5.83 6.53 6.94 30 up to 90 days 6.17 6.09 5.59 6.20 5.91 6.45 7.19 90 up to 180 days 5.81 5.81 5.68 6.05 5.64 6.52 6.89 180 days up to 1 year 6.15 5.60 6.90 6.93 5.74 6.10 6.68 1 year and over 6.42 6.07 6.70 6.60 6.46 7.22 6.77 Other than domestic governmental units, total 6.64 6.53 6.73 6.68 6.67 6.56 6.58 30 up to 90 days 4.97 5.00 5.00 5.00 4.90 4.93 5.00 90 up to 180 days 5.48 5.47 5.50 5.50 5.49 5.47 5.46 180 days up to 1 year 5.47 5.50 5.50 5.40 5.49 5.44 5.48 1 up to 2lA years 5.99 6.00 6.00 6.00 5.97 5.99 6.00 2V4 up to 4 years 6.46 6.42 6.48 6.38 6.50 6.48 6.50 4 up to 6 years 7.26 7.24 7.25 7.26 7.26 7.32 7.29 6 up to 8 years 7.49 7.50 7.46 7.50 7.49 7.45 7.50 Over 8 years 7.69 7.75 7.75 7.74 7.72 7.70 7.63 IRA and Keogh Plan time deposits, 3 years or more 7.86 7.77 7.87 7.81 7.87 7.86 7.91 Money market certificates, exactly 6 months 9.25 9.23 9.25 9.25 9.25 9.25 9.25 Club accounts i 3.70 2.26 3.31 3.48 3.99 3.91 4.41 1. Club accounts are excluded from all of the other categories. type of deposit outstanding. All banks that had either discontinued offering or never offered particular types of deposit as of the survey date were NOTE. The average rates were calculated by weighting the most common excluded from the calculations for those specific types of deposits, rate reported on each type of deposit at each bank by the amount of that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 73 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 74 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 NORM AND R. V. BERNARD, Special Assistant to DONALD J. WINN, Special Assistant to the Board the Board LEGAL DIVISION DIVISION OF RESEARCH AND STATISTICS NEAL L. PETERSEN, General Counsel JAMES L. KICHLINE, Director ROBERT E. MANNION, Deputy General Counsel JOSEPH S. ZEISEL, Deputy Director CHARLES R. MCNEILL, Assistant to the General JOHN H. KALCHBRENNER, Associate Director Counsel JOHN J. MINGO, Senior Deputy Associate Director J. VIRGIL MATTINGLY, Assistant General Counsel ELEANOR J. STOCKWELL, Senior Deputy GILBERT T. SCHWARTZ, Assistant General Counsel Associate Director JAMES M. BRUNDY, Deputy Associate Director ROBERT A. EISENBEIS, Deputy Associate Director OFFICE OF THE SECRETARY JARED J. ENZLER, Deputy Associate Director J. CORTLAND G. PERET, Deputy Associate Director THEODORE E. ALLISON, Secretary MICHAEL J. PRELL, Deputy Associate Director GRIFFITH L. GARWOOD, Deputy Secretary HELMUT F. WENDEL, Deputy Associate Director •WILLIAM N. MCDONOUGH, Assistant Secretary ROBERT M. FISHER, Assistant Director RICHARD H. PUCKETT, Manager, Regulatory FREDERICK M. STRUBLE, Assistant Director Improvement Project STEPHEN P. TAYLOR, Assistant Director LEVON H. GARABEDIAN, Assistant Director (Adm inistration) DIVISION OF CONSUMER AND COMMUNITY AFFAIRS DIVISION OF INTERNATIONAL FINANCE JANET O. HART. Director NATHANIEL E. BUTLER, Associate Director EDWIN M. TRUMAN, Director JERAULD C. KLUCKMAN, Associate Director ROBERT F. GEMMILL, Associate Director ANNE GEARY, Assistant Director GEORGE B. HENRY, Associate Director CHARLES J. SIEGMAN, Associate Director SAMUEL PIZER, Staff Adviser JEFFREY R. SHAFER, Deputy Associate Director DIVISION OF BANKING DALE W. HENDERSON, Assistant Director SUPERVISION AND REGULATION LARRY J. PROMISEL, Assistant Director RALPH W. SMITH, JR., Assistant Director JOHN E. RYAN, Director tFREDERicK C. SCHADRACK, Deputy Director FREDERICK R. DAHL, Associate Director WILLIAM TAYLOR, Associate Director WILLIAM W. WILES, Associate Director JACK M. EGERTSON, Assistant Director ROBERT A. JACOBSEN, Assistant Director DON E. KLINE, Assistant Director ROBERT S. PLOTKIN, Assistant Director THOMAS A. SIDMAN, Assistant Director SAMUEL H. TALLEY, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 75 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, AssistanrDirector 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

A 76 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 NORM AND 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 RERAN, Associate Economist ROBERT E. MANNION, Assistant General Counsel JAMES L. KICHLINE, Associate Economist STEPHEN H. AXILROD, Economist JAMES PARTHEMOS, Associate Economist ALAN R. HOLMES, Adviser for Market Operations KARL SCHELD, 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. WOODBRIDGE, JR., FIRST DISTRICT FRANK A. PLUMMER, SIXTH DISTRICT WALTER B. WRISTON, SECOND DISTRICT ROGER E. ANDERSON, SEVENTH DISTRICT WILLIAM B. EAGLESON, JR., THIRD DISTRICT CLARENCE C. BARKSDALE, EIGHTH DISTRICT 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 MARCIA A. HAKALA, Omaha Nebraska, Vice Chairman ROLAND E. BRANDEL, San Francisco, California PERCY W. LOY, Portland, Oregon JAMES L. BROWN, Milwaukee, Wisconsin R. C. MORGAN, El Paso, Texas MARK E. BUDNITZ, Atlanta, Georgia FLORENCE M. RICE, New York, New York JOHN G. BULL, Fort Lauderdale, Florida RALPH J. ROHNER, Washington, D. C. ROBERT V. BULLOCK, Frankfort, Kentucky RAYMOND J. SAULNIER, New York, New York CARL FELSENFELD, New York, New York HENRY B. SCHECHTER, Washington, D. C. JEAN A. Fox, Pittsburgh, Pennsylvania E. G. SCHUHART II, Amarillo, Texas RICHARD H. HOLTON, Berkeley, California BLAIR C. SHICK, Cambridge, Massachusetts EDNA DECOURSEY JOHNSON, Baltimore, Mary- THOMAS R. SWAN, Portland, Maine land ANNE GARY TAYLOR, Alexandria, Virginia RICHARD F. KERR, Cincinnati, Ohio RICHARD A. VAN WINKLE, Salt Lake City, Utah ROBERT J. KLEIN, New York, New York RICHARD D. WAGNER, Simsbury, Connecticut HARVEY M. KUHNLEY, Minneapolis, Minnesota MARY W. WALKER, Monroe, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 77 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 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 Pierro M. Viguerie 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 Frank A. Jones, Jr. L. Terry Britt Memphis 38101 Stephen F. Keating Mark H. Willes MINNEAPOLIS 55480 William G. Phillips Thomas E. Gainor Patricia P. Douglas Betty J. Lindstrom Helena 59601 Harold W. Andersen Roger Guffey KANSAS CITY 64198 Joseph H. Williams Henry R. Czerwinski A. L. Feldman Wayne W. Martin O De k n la v h e o r ma City 7 8 3 0 1 2 2 1 5 7 Christine H. Anthony William G. Evans Durward B. Varner Robert D. Hamilton Omaha 68102 Irving A. Mathews Ernest T. Baughman DALLAS 75222 Gerald D. Hines Robert H. Boy kin A. J. Losee Joel L. Koonce Jr. E H l o u P s a t s o o n 7 7 7 9 0 9 0 9 1 9 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 78 Federal Reserve Board Publications Available from Publications Services, Room MP-510, payable to the order of the Board of Governors of the Board of Governors of the Federal Reserve Systiem, Federal Reserve System. Remittance from foreign resi- Washington, D.C. 20551. Where a charge is indicated, dents should be drawn on a U.S. bank. (Stamps and remittance should accompany request and be made 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 each. year or $2.00 each in the United States, its possessions, 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 or 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 each. each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 79 CONSUMER EDUCATION PAMPHLETS THE MARKET FOR FEDERAL FUNDS AND REPURCHASE (Short pamphlets suitable for classroom use. Multiple AGREEMENTS, by Thomas D. Simpson. July 1979. copies available without charge.) 106 pp. IMPACT OF BANK HOLDING COMPANIES ON COMPETI- THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE TION AND PERFORMANCE IN BANKING MARKETS, SYSTEM by Stephen A. Rhoades and Roger D. Rutz. Aug. CONSUMER HANDBOOK TO CREDIT PROTECTION LAWS. 1979. 30 pp. THE EQUAL CREDIT OPPORTUNITY ACT AND . . . AGE. THE EQUAL CREDIT OPPORTUNITY ACT AND . . . Printed in Full in the Bulletin CREDIT RIGHTS IN HOUSING. (Included under "Reprints.") THE EQUAL CREDIT OPPORTUNITY ACT AND . . . DOCTORS, LAWYERS, SMALL RETAILERS, AND OTHERS WHO MAY PROVIDE INCIDENTAL CREDIT. REPRINTS THE EQUAL CREDIT OPPORTUNITY ACT AND . . . WOMEN. (Except for Staff Papers, Staff Studies, and some FAIR CREDIT BILLING. leading articles, most of the articles reprinted do not THE FEDERAL OPEN MARKET COMMITTEE exceed 12 pages.) FEDERAL RESERVE BANK BOARD OF DIRECTORS FEDERAL RESERVE BANKS MEASURES OF SECURITY CREDIT. 12/70. A GUIDE TO FEDERAL RESERVE REGULATIONS. REVISION OF BANK CREDIT SERIES. 12/71. HOW TO FILE A CONSUMER CREDIT COMPLAINT. ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF IF YOU BORROW TO BUY STOCK. U.S. BANKS. 2/72. IF YOU USE A CREDIT CARD. BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER— TRUTH IN LEASING. REVISED SERIES. 7/72. U.S. CURRENCY. YIELDS ON NEWLY ISSUED CORPORATE BONDS. 9/72. WHAT TRUTH IN LENDING MEANS TO YOU. RECENT ACTIVITIES OF FOREIGN BRANCHES OF U.S. BANKS. 10/72. ONE-BANK HOLDING- COMPANIES BEFORE THE 1970 STAFF STUDIES AMENDMENTS. 12/72. (Studies and papers on economic and financial sub- YIELDS ON RECENTLY OFFERED CORPORATE BONDS. jects that are of general interest.) 5/73. RATES ON CONSUMER INSTALMENT LOANS. 9/73. Summaries Only Printed in the Bulletin NEW SERIES FOR LARGE MANUFACTURING CORPORA- (Requests to obtain single copies of the full text or TIONS. 10/73. to be added to the mailing list for the series may be U.S. ENERGY SUPPLIES AND USES, Staff Economic sent to Publications Services.) Study by Clayton Gehman. 12/73. THE STRUCTURE OF MARGIN CREDIT. 4/75. NEW STATISTICAL SERIES ON LOAN COMMITMENTS AT THE BEHAVIOR OF MEMBER BANK REQUIRED RESERVE SELECTED LARGE COMMERCIAL BANKS. 4/75. RATIOS AND THE EFFECTS OF BOARD ACTION, 1968-77, by Thomas D. Simpson. July 1978. 39 AN ASSESSMENT OF BANK HOLDING COMPANIES, Staff Economic Study by Robert J. Lawrence and Sampp. uel H. Talley. 1/76. FOOTHOLD ACQUISITIONS AND BANK MARKET STRUC- TURE, by Stephen A. Rhoades and Paul Schweit- INDUSTRIAL ELECTRIC POWER USE. 1/76. zer, July 1978. 8 pp. REVISION OF MONEY STOCK MEASURES. 2/76. SURVEY OF FINANCE COMPANIES, 1975. 3/76. INTEREST RATE CEILINGS AND DISINTERMEDIATION, by Edward F. McKelvey. Sept. 1978. 105 pp. REVISED SERIES FOR MEMBER BANK DEPOSITS AND AGGREGATE RESERVES. 4/76. THE RELATIONSHIP BETWEEN RESERVE RATIOS AND INDUSTRIAL PRODUCTION—1976 REVISION. 6/76. THE MONETARY AGGREGATES UNDER RESERVES FEDERAL RESERVE OPERATIONS IN PAYMENT MECHA- AND FEDERAL FUNDS RATE OPERATING TARGETS, NISMS: A SUMMARY. 6/76. by Kenneth J. Kopecky. Dec. 1978. 58 pp. NEW ESTIMATES OF CAPACITY UTILIZATION: MANU- TIE-INS BETWEEN THE GRANTING OF CREDIT AND FACTURING AND MATERIALS. 11/76. SALES OF INSURANCE BY BANK HOLDING COMPA- BANK HOLDING COMPANY FINANCIAL DEVELOPMENTS NIES AND OTHER LENDERS, by Robert A. Eisenbeis and Paul R. Schweitzer. Feb. 1979. 75 pp. IN 1976. 4/77. SURVEY OF TERMS OF BANK LENDING—NEW SERIES. GEOGRAPHIC EXPANSION OF BANKS AND CHANGES IN BANKING STRUCTURE, by Stephen A. Rhoades. 5/77. Mar. 1979. 40 pp. THE COMMERCIAL PAPER MARKET. 6/77. IMPACT OF THE DOLLAR DEPRECIATION ON THE U.S. THE FEDERAL BUDGET IN THE 1970'S. 9/78. PRICE LEVEL: AN ANALYTICAL SURVEY OF EM- SUMMARY MEASURES OF THE DOLLAR'S FOREIGN EX- PIRICAL ESTIMATES, by Peter Hooper and Barbara CHANGE VALUE. 10/78. R. Lowrey. Apr. 1979. 53 pp. SURVEY OF TIME AND SAVINGS DEPOSITS AT COMMER- INNOVATIONS IN BANK LOAN CONTRACTING: RECENT CIAL BANKS, January 1979. 5/79. EVIDENCE, by Paul W. Boltz and Tim S. Camp- REDEFINING THE MONETARY AGGREGATES. 1/79. bell. May 1979. 40 pp. U.S. INTERNATIONAL TRANSACTIONS IN 1978. 4/79. MEASUREMENT OF CAPACITY UTILIZATION: PROBLEMS IMPLEMENTATION OF THE INTERNATIONAL BANKING AND TASKS, by Frank de Leeuw, Lawrence R. ACT. 10/79. Forest, Jr., Richard D. Raddock, and Zoltan E. CHANGES IN BANK LENDING PRACTICES, 1977-79. Kenesey. July 1979. 264 pp. 10/79. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 80 Index to Statistical Tables References are to pages A-3 through A-72 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, 1 1, 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 Consumer installment credit, 42, 43 Flow of funds, 44, 45 Consumer prices, 46, 51 Foreign Consumption expenditures, 52, 53 Currency operations, 12 Corporations Deposits in U.S. banks, 4, 12, 19, 20, 21, 22 Exchange rates, 68 Profits, taxes, and dividends, 37 Trade, 55 Security issues, 36, 65 Foreigners Cost of living (See Consumer prices) Credit unions, 29, 42, 43 Claims on, 56, 58, 61, 62, 63, 67 Currency and coin, 5, 16, 18 Liabilities to, 23, 56-60, 64-66 Currency in circulation, 4, 14 Customer credit, stock market, 28 GOLD Certificates, 12 Stock, 4, 55 DEBITS to deposit accounts, 13 Government National Mortgage Association, 35, 40, 41 Debt (See specific types of debt or securities) Gross national product, 52, 53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 81 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 Savings institutions, selected assets, 29 Investment companies, issues and assets, 37 Securities (See also U.S. government securities) Investments (See also specific types) Federal and federally sponsored agencies, 35 Banks, by classes, 16, 17, 18, 20, 21, 22, 29 Foreign transactions, 65 Commercial banks, 3, 15, 16, 17, 18 New issues, 36 Federal Reserve Banks, 12, 13 Prices, 28 Life insurance companies, 29 Special Drawing Rights, 4, 12, 54, 55 Savings and loan associations, 29 State and local governments Deposits, 19, 20, 21, 22 LABOR force, 47 Holdings of U.S. government securities, 32, 33 Life insurance companies (See Insurance companies) New security issues, 36 Loans (See also specific types) Ownership of securities of, 18, 20, 21, 22, 29 Banks, by classes, 16, 17, 18, 20-23, 29 Yields of securities, 3 Commercial banks, 3, 15-18, 20-23, 24, 26 State member banks, 17 Federal Reserve Banks, 3, 4, 5, 8, 12, 13 Stock market, 28 Insurance companies, 29, 41 Stocks (See also Securities) Insured or guaranteed by United States, 40, 41 New issues, 36 Savings and loan associations, 29 Prices, 28 MANUFACTURING Capacity utilization, 46 TAX receipts, federal, 31 Production, 46, 49 Time deposits, 3, 10, 13, 15, 16, 17, 19, 20, 21, 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 82 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Minneapolis Detroit S l P^ Chicago Omaha* Denver Louisvtl Kansas City t. Louis tarlotte. HashvilU Inge/es Jttle Rock Birminghai I ^A ® tla nta > Dallas® UPas'o Jackson Houston i 'Orleans \San Antonio January 1978 ALASKA 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