Federal Reserve Bulletin, 1979-12

DECEMBER 1979 FEDERAL RESERVE BULLETIN Reducing Federal Reserve Float Foreign Exchange Operations: Interim Report Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN (USPS 351-150). Controlled Circulation Postage Paid at Washington, D.C. POSTMASTER: Send address changes to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. A copy of the FEDERAL RESERVE BULLETIN is sent to each member bank without charge; member banks desiring additional copies may secure them at a special $10.00 annual rate. The regular subscription price in the United States and its possessions, and in Bolivia, Canada, Chile, Colombia, Costa Rica. Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela is $20.00 per annum or $2.00 per copy; elsewhere, $24.00 per annum or $2.50 per copy. Group subscriptions in the United States for 10 or more copies to one address, $1.75 per copy per month, or $18.00 for 12 months. The BULLETIN may be obtained from the Division of Support Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons are not accepted.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

VOLUME 65 • NUMBER 12 • DECEMBER 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

Table of Contents 945 REDUCING FEDERAL RESERVE FLOAT Trade, Investment and Monetary Policy of the House Committee on Banking, Fi- Analysis of available policy options for nance and Urban Affairs, November 13, reducing the level of float without causing 1979. dislocations in the payments mechanism or expending an excessive amount of re- 962 Governor Nancy H. Teeters discusses imsources. proving control over federal credit programs; Mrs. Teeters advocates establish- 951 TREASURY AND FEDERAL RESERVE ing a federal credit control budget along OPERATIONS: INTERIM REPORT the lines suggested by the administration and offers the Board's belief that a budget Concern felt in the exchange markets durcommission should be appointed to study ing the August-October period over the questions relating to budgetary treatment outlook for the dollar moderated following of federal credit activities and that a credit the Federal Reserve's money-tightening control office should be established in the actions in early October. Congressional Budget Office, before the House Budget Committee, November 13, 955 STAFF STUDIES 1979. "The GNMA-Guaranteed Fassthrough Security: Market Development and Implica- 966 ANNOUNCEMENTS tions for the Growth and Stability of Home Mortgage Lending" discusses the recent Appointment of 13 new members to the and likely future impacts of GNMAs in Consumer Advisory Council. the primary and secondary markets for Proposed section of Regulation J pertainresidential mortgages. ing to electronic fund transfers made through automated clearinghouses 957 INDUSTRIAL PRODUCTION operated by the Federal Reserve. Output declined 0.5 percent in November. Amendments to Regulation O that implement the reporting requirements of the 958 STATEMENTS TO CONGRESS Financial Institutions Regulatory and In- Chairman Paul A. Volcker reviews the terest Rate Control Act of 1978. (See Law actions taken by the Federal Reserve on Department.) October 6 and addresses some of the Amendments to Regulation F to reflect broader issues of monetary strategy; he rule changes adopted by the Securities and believes that it would be a mistake to at- Exchange Commission. (See Law Departtempt to set rigid and narrow long-range ment.) monetary targets and suggests that the present system under which the Federal Re- Amendments to Regulation K that liberalserve reports its intentions and its targets to ize procedures under which subsidiaries of the Congress is a much better approach, be- U.S. banking organizations may establish fore the Subcommittees on Domestic branches in foreign countries. (See Law Monetary Policy and on International Department.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Issuance of policy statement for commer- reserves to a pace consistent with growth cial banks that engage in futures, forward, from September to December at an annual and standby contracts for U.S. govern- rate on the order of 4L/Z percent in M-l ment and agency securities. and about 1V2 percent in M-2 and M-3, provided that in the period before the next Approval of survey of foreign exchange regular meeting the federal funds rate retransactions by certain U.S. banks and mained generally within a range of 11 Vi brokers. to \5Vi percent. Because such rates of Use of uniform survey by the three federal expansion would result in growth of the bank supervisory agencies to collect in- monetary aggregates in the upper part of formation on trust assets. their ranges for the year, the Committee also agreed that over the three-month pe- Endorsement of a uniform policy for riod somewhat slower growth would be supervising financial institutions that paracceptable. ticipate in certain U.S. governmentguaranteed loan programs. 979 LAW DEPARTMENT Second supplement to Federal Reserve Amendments to Regulations F, K, O, and Compliance Handbook. Y; various bank holding company and Issuance of Federal Reserve Readings on bank merger orders; and pending cases. Inflation. Admission of one state bank to member- A1 FINANCIAL AND BUSINESS STATISTICS ship in the Federal Reserve System. A3 Domestic Financial Statistics Changes in subscription service for bank- A46 Domestic Nonfinancial Statistics ing data on reports of condition and in- A54 International Statistics come. A69 GUIDE TO TABULAR PRESENTATION 972 RECORD OF POLICY ACTIONS OF THE AND STATISTICAL RELEASES FEDERAL OPEN MARKET COMMITTEE At the conclusion of the meeting on Oc- A70 BOARD OF GOVERNORS AND STAFF tober 6, 1979, the Committee agreed that in the conduct of open market operations A72 FEDERAL OPEN MARKET COMMITTEE over the remainder of 1979 the Manager AND STAFF; ADVISORY COUNCILS for Domestic Operations should place primary emphasis on restraining expansion of A73 FEDERAL RESERVE BANKS, BRANCHES, bank reserves in pursuit of the Commit- AND OFFICES tee's objective of decelerating growth of M-l, M-2, and M-3 to rates that would A74 FEDERAL RESERVE BOARD PUBLICATIONS hold growth of these monetary aggregates over the year from the fourth quarter of A79 INDEX TO STATISTICAL TABLES 1978 to the fourth quarter of 1979 within the Committee's ranges for that period. A81 INDEX TO VOL UME 65 Specifically, the Committee instructed the Manager to restrain expansion of bank A93 MAP OF FEDERAL RESER VE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reducing Federal Reserve Float Benjamin Wolkowitz and Peter R. Lloyd-Davies it has debited the accounts of payor banks. That of the Board's Division of Research and Statis- process produces a temporary increase in total tics prepared this article. System reserves, which is known as float. (The article does not deal with bank float, which The Federal Reserve System has been under develops after a check has been deposited but considerable pressure, from both internal and before it has been credited to the bank's reserve congressional sources, to control Federal Re- account.) In order to prevent changes in float serve float, which has more than tripled between from affecting the execution of monetary policy, late 1975 and the end of 1978. This increase the System Open Market Account offsets this has resulted in a reduction in the System's increase in reserves by selling government sepayment to the Treasury below what it would curities. Thus total reserves fall back to their otherwise have been. The Federal Reserve has targeted level, but the System's portfolio been exploring ways of reducing the level of shrinks. As a result, System earnings drop and float without causing dislocations in the pay- the residual payment to the Treasury declines. ments mechanism or expending an excessive The precise size of this reduction depends on amount of resources. the size of float and market interest rates. For This article analyzes three possible policy example, with $5.5 billion in float (the annual options: (1) improving management of the daily average for 1978) and a market rate of payments mechanism, (2) devoting additional 7 percent (an approximation of the average resources to reduce clearing times, and return on the System's portfolio in 1978), the (3) changing the schedule that determines when annual reduction in Federal Reserve earnings a member bank receives credit for items depos- transferred to the Treasury is $385 million. ited with the System. All three approaches have The net cost of float to the Treasury is difcertain benefits, but care must be taken to dis- ferent from the direct reduction in System revetinguish between the real benefits of float reduc- nues transferred to the Treasury, for two reasons. tion to society in general and benefits to partic- First, increased float boosts taxable income in ular groups at the expense of other groups. As the private sector. The private sector has gained discussed below, float reduction is largely a an interest-bearing asset (the government seredistribution of wealth, not a contribution to curities sold by the Trading Desk) in exchange wealth. for a non-interest-bearing one (a check that has The analysis in this article is limited in scope. been deposited for which funds have not yet Float is viewed solely from an economic been made available). The interest earned by perspective; no attempt is made to deal with the private sector could show up as additional some of the fundamental questions concerning income to the bank, or to the bank's customers, the appropriateness of existing policies or of or it could be diffused throughout the economy. alternative policies that may be motivated by Thus the exact amount recovered by the Treasother than strictly economic considerations. ury in taxes is difficult to estimate. If, for example, each dollar of interest is subject to the full corporate income tax rate of 46 percent COST OF FLOAT TO THE TREASURY and the remainder is taxed at a 20 percent In the course of transferring funds among mem- personal rate, the total recovery is $0.568—that ber banks, the Federal Reserve sometimes cred- is, 0.46 + (0.20 X 0.54). At least some recovits the reserve accounts of payee banks before ery by the Treasury of the direct cost of float Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

946 Federal Reserve Bulletin • December 1979 seems likely, so the net cost would be signifi- banks on the day on which checks are presented cantly less than the reduction in System earn- by the Federal Reserve rather than on the folings. lowing day, as previously had been done. Second, as float increases and System pay- The reduction in float in the earlier part of ments to the Treasury decline, the Treasury is the decade is in marked contrast to the growth compelled to raise additional revenues to replace in float since 1976. By the end of that year the the funds lost. Tax collection consumes real average daily volume of float was again more resources in the form of bookkeeping, adminis- than $3 billion; volume continued to rise tration, auditing, and other ancillary services. through 1977; and in late 1978 it seemed to These costs are real costs to the economy of accelerate, until by December it was more than Federal Reserve float, but they are likely to be $7.5 billion. After climbing above $9 billion small. Although no data exist on the marginal during the winter months of 1979, it subsided cost of tax collection, the average cost can be somewhat, and for most of the rest of the year measured simply by dividing the annual budget it has ranged between $5 billion and $6 billion. of the Internal Revenue Service by the amount Some part of this increase may be attributed of taxes collected. The result is a number on to growth not only in the number of checks the order of 1/2 percent; that is, it costs about collected but in the value of the average check. one-half cent to raise one dollar of revenue. But neither more checks nor larger ones fully (The average cost is not strictly appropriate account for the entire rise in float. While float since it probably includes many fixed costs that grew by 162 percent from 1975 to 1978, the would not rise with an increase in float; how- growth in the total value of items collected was ever, marginal variable costs are probably ris- only 68 percent, leaving a substantial portion ing, so there is no clear direction of bias.) of the change in float unexplained (see the table). At least part of the answer may be that checks are taking longer on average to clear REASONS FOR CONTROLLING FLOAT through the System, although the detailed data During the first half of the 1970s, float declined to determine a precise answer are lacking. significantly, from a daily average of about $3 The Congress has also been concerned with billion in 1972 to about $2 billion toward the the recent pattern of float. While the Federal end of 1975, as shown in the chart. This reduc- Reserve is not a tax collection agency, by retion reflected the installation of high-speed bating to the Treasury its portfolio earnings in check-sorting equipment and expansion of air excess of expenses, it provides a substitute charter service, which have helped to reduce the for tax revenues. As float increases, the amount delay in presenting checks for payment; another of the rebate falls, and the Treasury is compelled factor was an amendment to Regulation J in late to replace the lost revenue by additional taxes 1972 to debit the reserve accounts of country or borrowing if government spending is not to be reduced. For this reason, members of the Federal Reserve float, 1970-79 Congress have urged the Board to reduce float Billions of dollars significantly. RESOURCE COST OF FLOAT The revenue loss to the Treasury that is caused by float is, from society's viewpoint, principally a transfer payment rather than a true social cost. No resources are consumed in the production of float per se; rather, float represents a transfer from taxpayers to banks in the form of interest- 1971 1973 1975 1977 1979 free loans of reserves. These benefits are then Monthly averages of daily data. passed on at least in part to the consumers of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reducing Federal Reserve Float 947 Annual daily average of check items collected by the Federal Reserve and float, 1975-78 Dollar amounts in billions Items collected YYYeeeaaarrr FFllooaatt Number Value Percentage change Dollar Percentage change Dollar Percentage change Total (millions) from previous year amount from previous year amount from previous year 1975 .. 37.5 5.3 14.0 3.7 2.1 -8.7 1976 .. 40.4 7.7 15.3 9.3 2.6 23.8 1977 .. 43.8 8.4 18.1 18.3 3.6 38.5 1978 .. 46.4 5.9 23.4 29.3 5.5 52.8 financial services. Since many of these con- Managerial Techniques sumers are corporations, the benefits of float may then be further diffused throughout the The Federal Reserve can take certain steps to economy. The redistribution of wealth that float improve the efficiency of check-clearing operafosters may benefit certain individuals at the tions that do not involve any major commitment expense of-others, but it seems unlikely sysof resources. If all participants adhered strictly tematically to benefit or to penalize any wellto policies already in effect, those policies defined group. would be adequate to assure a check-clearing To assume that the taxpayer will always bensystem that would be both efficient and relaefit from a reduction in float is incorrect. It is tively free from float. For example, the System's likewise incorrect to use the increase in Treasury 3 percent dollar holdover guideline means that revenues as a justification for programs to reno more than 3 percent of the total dollars for duce float that require the expenditure of real which credit was passed to depositors on a given resources. In considering alternative methods day should be held over for processing on the for controlling float, the focus should be on the next day. That guideline began to be exceeded real benefits from each program, excluding apfor the first time in 1975. Since then, the variaparent benefits that are merely transfer paytion in holdover has increased and the guideline ments. The only real benefit resulting directly has been exceeded occasionally. To the extent from a reduction in float is the reduced real cost that this development reflects managerial probof tax collection. As noted, this benefit is likely lems, closer adherence to the guideline and a to be small. Calculating the Treasury revenue corresponding decrease in float probably could loss with the 7 percent interest rate on the be accomplished at small additional cost by System portfolio in 1978, and allowing for an closer monitoring of Reserve Bank operations. average cost of tax collection of 1/2 percent and Another area of concern is remote disa tax-recovery factor of 55 percent, one finds bursement, which has been growing because the that a reduction in float of $1 billion could save continued inflation has imparted a higher time around $158,000. value to money. This practice involves the deliberate routing of checks in ways that maximize METHODS OF the delay before checks are presented for pay- REDUCING FLOAT ment; for example, checks to pay local bills are drawn on accounts at country branches, remote In addition to the modest saving of tax collection affiliates, or banks on the other side of the costs, other real benefits may be associated with country. This practice maximizes float to the particular methods of reducing float. Three advantage of the payor bank's customer and at routes are open to the Federal Reserve: a cost to the taxpayer. Not only does the Federal (1) managerial techniques; (2) speedier clear- Reserve lose earning assets from its portfolio ing; and (3) changes in the availability sched- but also its operating costs are increased as ule. checks are sent along unnecessarily lengthy Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

948 Federal Reserve Bulletin • December 1979 routes. Payees are hurt by this process, too, debited more quickly. In the context of current because they are forced to wait longer for pos- check-processing technology, this could be acsible return items, a delay that jeopardizes their complished by acquiring faster machines, more chances of recovering the money from the writ- employees, more backup capability to deal with ers of bad checks. And a small rural payor bank equipment failures, greater capacity to handle could experience difficulties if it honored a large peak loads, and faster or more frequent transvolume of checks for a corporation that was portation. Other technologies are available to unable to cover them. (There is no evidence that expedite the clearing process, such as electronic this danger has ever been realized.) settlement by automated clearinghouse. Another No real benefits offset these costs, and so the program under consideration is electronic check Federal Reserve has initiated contacts with presentment, by which checks of large value banks to discourage them from offering remote would be paid electronically before they are disbursement services to their customers. This physically presented to the payor bank. program has had some success. Even so, a large This reduction in float would be achieved at corporation could continue to write checks on the expense of those banks whose reserve acaccounts it maintained throughout the country counts are debited after a shorter delay, thereby without any assistance from the banks. Only a losing at least part of their interest-free loan of fee reflective of the System's increased costs reserves. The banks will pass on the cost to their could have a sure impact on firms engaged in customers, whose accounts will likewise be remote disbursement. To be effective, the fee debited sooner than before. Corporate customers would require a charge to the payor, which of the banks will probably also pass on these might call for enforcing legislation. costs, at least partially, to their customers in Direct-send float is another area in which the form of higher prices and to their suppliers improved System monitoring is serving to re- in the form of lower contract prices. (The extent duce float. Banks clearing interdistrict items of this passthrough depends on how responsive with the System can either deposit them at their demand and supply are to changes in prices. own district office or send them directly to the Costs not passed on this way will be borne by appropriate System office. If they are sent di- the corporation's stockholders.) In other words, rectly, availability depends on the time they are the gain in System revenues is principally a sent. Banks are required to report sending times transfer from the consumers of financial servto their own Reserve Bank, and they are ex- ices. Thus the only real benefit of the increase pected to comply with a 75 percent on-time in Treasury revenues resulting from improved performance guideline. Such a guideline builds check handling is the reduction in the real cost in a certain amount of float attributable to of tax collection, which would justify the imdirect-send practices. However, if the guideline provements only if the improvements were less is abused (that is, if banks send items later than costly than raising an equivalent amount of they report such items more than one-fourth of revenue through taxes. the time, as many in the System now believe), Several other real benefits associated with this component of float will rise above the improving the efficiency of the clearing process ceiling established by the guideline. Better could justify such a policy. The faster checks monitoring of an compliance with the 75 percent are cleared, the easier it is for individuals and guideline may permit significant reductions in corporations to reconcile bank statements with float. their own accounts. If faster clearing also implies more predictable delays, check writers will require lower precautionary balances in non-interest-bearing accounts, waiting for checks to Speedier Clearing be presented. Payees also benefit from faster Another route the Federal Reserve might take clearing, even if the availability schedule is to reduce float is to speed up the collection unchanged. The longer the delay before preprocess so that the payor's reserve account is sentment, the greater the danger that the check Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reducing Federal Reserve Float 949 writer's financial condition will deteriorate to actually absorbs it, the cost is still principally the point at which the check will no longer be an income transfer and not a net benefit to honored. Furthermore, the sooner the payee can society. be notified about return items, the easier he will As in the other instances, the reduction in find it to extract payment from the check writers. float accomplished by lengthening the avail- With faster clearing, remote disbursement and ability schedule will allow the Treasury to save other maneuvers to maximize float become less certain tax collection expenses. This would profitable. This creates real benefits as checks seem to be the preferred approach because no are routed more efficiently. A determination of expenditures by the System are required to rethe optimal clearing speed, then, should weigh duce float. Certain social costs are, however, the costs of achieving a given level of service associated with lengthening the availability against these real benefits. schedule. The payee, in response to a lengthened schedule, will be more likely to seek alternative, more rapid, clearing arrangements outside the System. The amount of resources Changing the Availability Schedule devoted to such alternative arrangements will The Federal Reserve could reduce the level of equate the marginal cost of speedier clearing float by changing the availability schedule to with its marginal benefit to the payee. These make it correspond more closely to actual benefits include real ones, such as simplified clearing times. Thus payee banks may have to bookkeeping and the earlier resolution of unwait longer before receiving credit for items certainty about the collectibility of the check. deposited for clearing. Float could in effect be But they also include the interest gained from reduced by the stroke of a pen; therefore, none obtaining earlier access to the funds. This last, of the real costs to the System associated with however, is not a true gain to society, any more improving the efficiency of System operations than is the increase in Treasury revenue resultneed be incurred when the availability schedule ing from a reduction in Federal Reserve float. is altered. Unfortunately, few of the real bene- The payee's gain is the payor's loss, so society fits will be realized either. as a whole has gained nothing. The problem is that, as soon as the check is handed over, As before, the Treasury gains revenue from the payor loses control of how it is to be the reduction in float. In this case, however, handled, even though his wealth is affected by the gain is paid for by depositing banks and the clearing speed. This is in contrast to usual by check recipients, rather than by receiving market behavior, in which resource allocation banks and by check writers; and the incidence is determined by all directly affected parties. of this cost is more complex. Corporate cus- Because in this case the payor has no influence tomers, commonly given the same availability on the payee's clearing decision, overinvestas the bank, will bear the cost of the longer ment in clearing is likely from society's point wait to receive credit, and to some extent they of view. will pass the cost on to the buyers of their products. Smaller or less valued bank customers In principle, this overinvestment could be may not be allowed to draw on items deposited avoided without government intervention. Conuntil some time after the bank has been credited, tracts between individuals could be altered so supposedly in case the item is later returned. that the payee received no advantage at the But if actual clearing time is unchanged while expense of the payor by a speedup in collection availability for the bank is deferred, the bank of the check. The advantage could be precluded would have no reason to lengthen its availability by specifying payment in immediately available schedule for these customers. In such a case, funds by the due date, or by requiring the payor the bank appears to be the one to absorb the to pay interest until the funds are actually colcost of the float reduction, though it might lected. Because of the transaction costs of writeventually shift the cost increase to its customers ing and monitoring, such contracts are unlikely by adjusting fee schedules. Regardless of who to become universal. The Federal Reserve, by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

950 Federal Reserve Bulletin • December 1979 giving guaranteed availability and clearing at a public investment of resources, to lengthen the slower rate, is allowing individuals to econo- availability schedule will probably bring about mize on these transaction costs without the a comparable private investment. The resulting overinvestment in clearing speed. A by-product reduction in float is unlikely by itself to justify of this policy, however, is that it increases such an expenditure, whether public or private. Federal Reserve float. Attention should instead be focused on the real It appears that, while reducing Federal Re- benefits to society of such expenditures to see serve clearing time may involve a substantial if the benefits outweigh the costs. • An appendix on the seasonal adjustment of Federal Reserve float is available from the authors on request. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

951 Treasury and Federal Reserve Foreign Exchange Operations: Interim Report This interim report, covering the period August rose, the authorities of other European countries through October 1979, is the fourteenth of a whose currencies were linked directly or indiseries providing information on Treasury and rectly to the German mark also moved to in- System foreign exchange operations to supple- crease domestic interest rates. ment the regular series of semiannual reports For those countries where economic activity that are usually issued each March and Sep- remained sluggish, the decision to tighten montember. It was prepared by Scott E. Pardee, etary policies was especially difficult. But the Manager of Foreign Operations of the System authorities stressed the need to raise domestic Open Market Account and Senior Vice Presi- interest rates at least in line with the increase dent in the Foreign Function of the Federal in domestic inflation rates rather than risk an Reserve Bank of New York. erosion of the external values of their currencies that would aggravate domestic inflationary At the beginning of the August-October period pressures. In the United States, strong growth under review, exchange market participants of the monetary aggregates had resumed in the were concerned over the outlook for the dollar, late spring and early summer and the Federal as progress toward reducing the U.S. trade Reserve also acted to raise the federal funds deficit stalled and inflationary pressures in this rate. Nevertheless, interest rates here did not country intensified further. U.S. exports contin- advance by as much as interest rates in most ued to expand smartly, but import growth also other industrial countries, and differentials in remained strong, reflecting the unexpected re- favor of dollar placements narrowed accordbound in domestic economic activity as well as ingly. Moreover, many market participants had the upsurge in international oil prices, which added massively to our oil import bill. The rise 1. Federal Reserve in oil prices was also aggravating U.S. inflation reciprocal currency arrangements at a time of considerable talk of an impending Millions of dollars recession in this country. Market participants Amount of facility, Institution Oct. 31, 1979 thus increasingly questioned the credibility of Austrian National Bank 250 the U.S. authorities' stated policy emphasis on National Bank of Belgium 1,000 the need to combat inflation, to curb oil imports, Bank of Canada 2,000 National Bank of Denmark 250 and to foster a strong dollar and stability in the Bank of England 3,000 Bank of France 2,000 exchange markets. German Federal Bank 6,000 Bank of Italy 3,000 In this regard market participants focused on Bank of Japan 5,000 monetary conditions here and abroad. Interest Bank of Mexico 7001 Netherlands Bank 500 rates in other major industrial countries had Bank of Norway 250 Bank of Sweden 300 moved higher through 1979 in response to Swiss National Bank 4,000 growing credit demands and accelerating infla- Bank for International Settlements Swiss francs/dollars 600 tion. The German economy in particular had Other authorized European currencies/dollars 1,250 built up a head of steam, and the German Federal Bank had acted to slow the growth of Total 3300,,110000 money and credit. As German interest rates 1. Increased by $340 million effective Aug. 17, 1979. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

952 Federal Reserve Bulletin • December 1979 2. Foreign exchange operations: Against this background, the exchange markets Summary, July 31-October 31, 1979 turned quieter during most of August. Even so, Millions of dollars equivalent confidence in the dollar remained tenuous, and a substantial reflux of funds into dollar-denom- TTyyppee ooff ttrraannssaaccttiioonn Transactions with German Federal Bank inated assets did not materialize. The U.S. Reciprocal currency arrangements1 authorities sharply reduced their intervention, Commitments outstanding, operating in the exchange markets on only three July 31, 1979 2,053.3 Drawings or repayments (—), occasions and selling a total of $448.1 million Aug. 1—Oct. 31, 1979 /l ,844.1 Commitments outstanding, I -492.1 2 equivalent of marks. At the same time the Oct. 31, 1979 3,443.9 Federal Reserve was able to purchase through U.S. Treasury swap arrangement3 transactions with correspondents enough marks Commitments outstanding, July 31, 1979 0 and Swiss francs to make small net repayments Drawings or repayments ( —), Aug. 1—Oct. 31, 1979 / 337.7 on previous swap line drawings with the Swiss Commitments outstanding, V337.7 National Bank and the German Federal Bank. Oct. 31, 1979 0 By late summer, market sentiment had dete- Transactions with Swiss National Bank riorated. Although market interest rates in the Reciprocal currency arrangements1 United States continued to firm, interest rates Commitments outstanding, elsewhere also advanced further, particularly in July 31, 1979 31.7 Drawings or repayments (—), Germany. Moreover, even though the dollar had Aug. 1-Oct. 31, 1979 / 44.2 Commitments outstanding, 1-76.0 not recovered to earlier levels, some central Oct. 31, 1979 0 banks began to support their currencies by sell- Transactions with ing dollars and other currencies. Many in the BIS (against Reciprocal currency arrangements3 German marks)4 market interpreted reports of official dollar sales Commitments outstanding, as indicating an unwillingness to let the dollar July 31, 1979 0 Drawings or repayments ( —), rise should it come into demand and, more Aug. 1-Oct. 31, 1979 f 39.0 Commitments outstanding, V39.0 broadly, as a breakdown in central bank coop- Oct. 31, 1979 0 eration. 1. Data are on a transaction-date basis. With the latest price indicators for the United 2. Repayments exclude revaluation adjustments from swap renewals, which amounted to $38.6 million for drawings on States still rising at double-digit annual rates, the German Federal Bank renewed during the period. the dollar was left vulnerable to selling pressure. 3. Data are on a value-date basis. 4. Bank for International Settlements drawings and repay- Thus, by early September, the dollar came on ments of dollars against European currencies other than Swiss offer once again against the German mark and francs to meet temporary cash requirements. other European currencies. The demand for become increasingly concerned that U.S. inter- marks also swelled on expectations of a nearest rates had not risen sufficiently to take account term revaluation of the mark against other curof the surge of inflation and of inflationary rencies within the European Monetary System expectations in this country. (EMS). Intervention to maintain the exchange By early August, heavy intervention by the rate limits within the EMS mounted rapidly, and U.S. authorities in the early summer months had the participating central banks sold increasingly blunted the selling pressures on the dollar and large amounts of marks. Nevertheless, the dewas reflected, in part, by an increase in the mand for marks was so strong that it pulled up Federal Reserve's outstanding swap drawings to EMS currencies as a group against the dollar. $2,053.3 million equivalent of marks and $31.7 As the decline in the dollar gathered momenmillion equivalent of Swiss francs as of the end tum, the U.S. authorities intervened forcefully of July. Moreover, President Carter's appoint- once again, selling substantial amounts of marks ment of G. William Miller as Secretary of the almost every day during September. In view of Treasury and Paul A. Volcker as Chairman of the continuing excessive growth of the monetary the Federal Reserve had been welcomed in the aggregates, the Federal Reserve raised the fedmarkets as indicating the government's resolve eral funds rate further, and hiked the discount to deal with inflation and the dollar problem. rate 1/2 percentage point to a record 11 percent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations 953 on September 18. But in the atmosphere of 3. Net profits and losses (-) on U.S. Treasury and concern over U.S. resolve to combat inflation, Federal Reserve current foreign exchange operations1 market participants reacted more to the fact that Millions of dollars the discount rate increase was approved by a U.S. Treasury split 4 to 3 vote of the Board of Governors than to the tightening in monetary policy. Conse- Period R Fe e d se e r r v a e l St E a x b c il h iz a a n t g i e o n a G c e c n o e u r n a t l quently, selling pressure continued as commer- Fund cial leads and lags shifted against the dollar, Aug. 1 through corporations intensified efforts to hedge expo- Oct. 31, 1979 -12.6 56.5 16.2 sures before the end of the quarter, and some Valuation profits and losses on asset holders moved to diversify their portfolios. outstanding assets and liabilities as of In this environment, the formal realignment of Oct. 31, 1979 1.2 -358.8 -123.9 EMS currencies over the September 22-23 1. Data are on a value-date basis. weekend relieved the tension among the participating currencies but not the broader pressures against the dollar. the Treasury. The Federal Reserve financed Meanwhile, speculative excesses began to most of its mark intervention by drawing an show up in a number of other financial and additional $1,762.2 million equivalent under the commodity markets in the United States and swap line with the German Federal Bank, abroad. Concern over international price stabil- bringing total drawings to $3,746.0 million after ity heightened when spot oil prices advanced allowing for further repayments and revaluation once again as members of the Organization of adjustments. The remainder of the System's Petroleum Exporting Countries (OPEC) began mark sales and all of the Treasury's intervention to raise their contract prices above the range were financed out of balances. The Treasury's agreed on last June. The price of gold soared $337.7 million equivalent drawing and repayto as high as $447 per ounce in early October. ment on the swap line with the German Federal This explosion in commodity prices was widely Bank reflected temporary financing, while interpreted not just as a shift out of the dollar Treasury holdings of German government sebut as a shift out of currencies generally into curities were being liquidated. The Federal Retangible assets. In the exchange markets, the serve also resumed intervention in Swiss francs, Japanese yen in particular declined in response selling $44.2 million equivalent drawn on the to the oil situation and to Japan's sudden shift swap line with the Swiss National Bank. into current-account deficit. Otherwise, the By that time, however, the exchange markets brunt of the speculative pressures fell on the were alive with rumors of a new support packdollar as the world's major trading and reserve age for the dollar. Market participants followed currency. In this atmosphere, market partici- closely the news reports surrounding the Hampants, the financial press, and politicians here burg meeting between U.S. and German offiand abroad were calling generally for improved cials and the annual meetings of the Internamonetary policy coordination among major in- tional Monetary Fund and the World Bank in dustrial countries, and in particular, for the Belgrade, Yugoslavia, in the first week of Oc- United States to take more effective action to tober. When it was learned in the market that bring U.S. inflation under control. Chairman Volcker had left Belgrade early to By Tuesday, October 2, the dollar had de- return to Washington, dollar rates rallied on clined by 4 percent against the German mark expectations of dramatic new policy action, and and by 1 to 5 percent against other European the Trading Desk had no further need to intercurrencies, compared with early-August levels. vene. In their intervention during September and early On Saturday, October 6, the Federal Reserve October, the U.S. authorities sold a further announced a series of complementary actions to $3,720.9 million equivalent of marks shared assure better control over the expansion of about evenly between the Federal Reserve and money and credit, to help curb speculation in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

954 Federal Reserve Bulletin • December 1979 financial, foreign exchange, and commodity 4. U.S. Treasury securities, foreign currency markets, and thereby to dampen inflationary denominated, July 31-October 31, 19791 forces. The actions included an increase of 1 Millions of dollars equivalent; issues or redemptions ( —) percentage point in the discount rate to 12 Commit- Aug. 1 Commitpercent and the imposition of an 8 percent Issues ments, through ments, July 31 Oct. 31 Oct. 31 marginal reserve requirement on increases in managed liabilities. In addition, the System Public series Switzerland 1,203.0 0 1,203.0 announced that it would place greater emphasis Germany 2,946.7 0 2,946.7 on the supply of bank reserves in its open market Total 4,149.7 0 4,149.7 procedures and less emphasis on the federal funds rate in seeking to reach its objective for 1. Data are on a value-date basis. the monetary aggregates. currencies through the rest of the month. Rather, In the days following these measures, interest the improvement in the dollar enabled the Fedrates in the Eurodollar and domestic markets eral Reserve to step up repayment of swap debt moved up sharply. Although there was consid- through purchases of foreign currencies from erable uncertainty at first, the exchange markets correspondents. As a result, by the month-end reacted positively on balance both to the an- the Federal Reserve had repaid $314.3 million nounced Federal Reserve actions and to the equivalent of swap drawings on the German subsequent rise in dollar interest rates. Through Federal Bank, reducing the total to $3,443.9 the remainder of October the dollar traded more million, and had arranged acquisition of a suffifirmly despite the continued advance of interest cient amount of Swiss francs to liquidate outrates abroad, the lack of improvement in the standing drawings in that currency. latest U.S. trade and inflation figures, the esca- During the period under review, the System lation in international oil prices, and growing realized net losses of $12.6 million on its exuncertainties over the political situation in Iran. change market operations. The Exchange Stabi- Compared with early-October lows, the dollar lization Fund (ESF) realized net profits of $56.5 was up 2 percent to 5 percent on balance against million, while the Treasury's General Account the European currencies by the month-end. realized net profits of $16.2 million. Valuation Against the Japanese yen and Canadian dollar, losses were $358.8 million for the ESF and the dollar rose 5 percent and 2 percent respec- $123.9 million for the General Account, while tively during the period under review. the System had valuation profits of $1.2 million. With the dollar on much better footing fol- Also in August the Federal Reserve's reciprocal lowing the October 6 measures, the U.S. au- swap arrangement with the Bank of Mexico was thorities did not intervene as a seller of foreign increased by $340 million to $700 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

955 Staff Studies The staffs of the Board of Governors of the In all cases the analyses and conclusions set Federal Reserve System and of the Federal forth are those of the authors and do not neces- Reserve Banks undertake studies that cover a sarily indicate concurrence by the Board of wide range of economic and financial subjects. Governors, by the Federal Reserve Banks, or In some instances the Federal Reserve System by the members of their staffs. finances similar studies by members of the aca- Single copies of the full text of each of the demic profession. studies or papers summarized in the BULLETIN From time to time the results of studies that are available without charge. The list of Federal are of general interest to the professions and Reserve Board publications at the back of each to others are summarized—or they may be BULLETIN includes a separate section entitled printed in full—in this section of the FEDERAL "Staff Studies" that lists the studies that are RESERVE BULLETIN. currently available. STUDY SUMMARY THE GNMA-GUARANTEED PASSTHROUGH SECURITY: Market Development and Implications for the Growth and Stability of Home Mortgage Lending David F. Seiders—Staff, Board of Governors Prepared as a staff paper in mid-1979 In the nine years since the introduction of mort- Based on available evidence, the total longgage-backed passthrough certificates guaranteed run supply of home mortgage credit has inby the Government National Mortgage Associ- creased to some degree as institutions not tradiation, more than $75 billion of these securities tionally interested in mortgage assets have been have been issued. Security dealers have devel- drawn into the GNMA market by attractive oped a secondary market for the so-called yields and by various nonrate characteristic's of GNMAs, and futures markets in these securities the security. Effects on the cyclical variability have been organized on the commodities ex- of home mortgage lending are more difficult to changes. As these markets have opened up, determine. Despite the importance of diversified households have acquired a way to compete for investors with relatively stable sources of funds funds, indirectly, on reasonably favorable terms and the existence of an active secondary market with the most highly rated participants in the for seasoned securities, GNMAs are not necescapital markets. Despite such striking develop- sarily a stabilizing factor. Indeed, new issues ments, the implications of GNMAs for the of GNMAs have been quite volatile, implying growth and stability of home mortgage lending a destabilizing effect on the total supply of have undergone little analysis; this study under- mortgage funds. Closer analysis reveals, howtakes to fill part of that gap. ever, that short-term fluctuations in the volume Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

956 Federal Reserve Bulletin • December 1979 of issues have been associated largely with the standing GNMAs with various issue dates and management of loan inventories by mortgage coupon rates may hamper secondary market bankers that act as intermediaries between final trading in seasoned securities. In addition, the borrowers and investors and that employ various growth potential of the GNMA market may be methods to hedge their interest rate risk. constrained by further erosion of demand for The cyclical influence of GNMAs is not ade- unsubsidized government-underwritten home quately indicated by new issues, secondary loans by mortgage originators and borrowers, market transactions, or GNMA commitments to despite some recent innovations in insurance guarantee. Additional insights into the effect of programs initiated by the Federal Housing Adthe GNMA market on the stability of home ministration. mortgage lending may be gained by combining The impact of GNMAs on mortgage market inferences about the growth effects of GNMAs activity will depend also on adjustments to inand the relative stability of the unsubsidized terest rate ceilings in the primary markets for government-underwritten component of the pri- conventional and for government-underwritten mary home mortgage market—the base upon loans, and on the relationship that develops which the GNMA market is built. This line of between GNMAs and the Federal National analysis indicates that development of the Mortgage Association in the secondary market GNMA market has had a slight stabilizing effect for government-underwritten loans. Finally, the on total home mortgage lending. health of the GNMA market will depend to A number of factors are likely to limit the some degree on the type of regulation—governeffect of GNMAs on the growth and stability ment or private—that evolves in the wake of home mortgage lending in the future. Prob- of scattered abuses in the forward market for lems in estimating expected yields on out- GNMAs. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

957 Industrial Production Released for publication December 14 Output of durable goods materials declined 1.3 percent in November, reflecting reductions Industrial production declined an estimated 0.5 in the output of basic metals, particularly steel, percent in November after no change in Oc- and parts for motor vehicles. Production of tober. The decline mainly reflected cutbacks in equipment parts increased further. Output of the output of autos, trucks, and related durable nondurable materials was unchanged as an ingoods materials and parts. In addition, output crease in chemicals was offset by small declines of home goods and construction supplies de- in paper and textiles production. Output of enclined somewhat. At 151.6 percent of the 1967 ergy materials was about unchanged. average, total industrial production in November was 0.7 percent higher than that of a year earlier and slightly below the level at the end of 1978. Output of consumer goods declined 0.8 percent in November. The production of autos and utility vehicles (mainly lightweight trucks) was reduced about 8 percent, reflecting lower sales and large dealer inventories of these vehicles. Auto assemblies were at a seasonally adjusted annual rate of 7.2 million units—almost 20 percent below the monthly average in the first half of 1979. Production of home goods declined 0.5 percent, and output of consumer nondurable goods edged down. Output of construction supplies weakened further in November, while production of business supplies increased slightly. Output of business equipment was maintained after a strike-related decline in October; this component was almost 4 Federal Reserve indexes, seasonally adjusted. Latest figures: percent above its level of a year earlier. November. Auto sales and stocks include imports. 1967 == 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee IIInnnddduuussstttrrriiiaaalll ppprrroooddduuuccctttiiiooonnn 1979 1979 111111///777888 tttooo Oct." Nov.e June July Aug. Sept. Oct. Nov. 111111///777999 Total 152.4 151.6 A .1 -.8 .5 .0 -.5 .7 Products, total 149.6 149.0 -A -.3 -.7 .7 -.1 -.4 .7 Final products 146.9 146.2 -.1 -.3 -1.0 1.0 -.1 -.5 .6 Consumer goods 149.9 148.7 -.1 -.7 -1.7 1.1 .1 -.8 -1.7 Durable 152.9 149.6 -1.2 -.9 -6.2 3.1 .6 -2.2 -8.2 Nondurable 148.7 148.4 .3 -.6 .2 .3 -.1 -.2 1.2 Business equipment — 171.3 171.4 .1 -.1 .1 1.0 -1.2 .1 3.9 Intermediate products 159.6 159.3 .0 -.1 .8 -.6 .0 -.2 1.0 Construction supplies... 155.8 154.9 -.1 .1 .6 -.7 -.3 -.6 -.8 Materials 156.6 155.6 .5 .7 -1.0 .3 .1 -.6 .7 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

958 Statements to Congress Statement by Paul A. Volcker, Chairman, a recession had already started. As the summer Board of Governors of the Federal Reserve ended, however, signs began to emerge of a System, before the Subcommittees on Domestic surprising degree of strength in spending. Sub- Monetary Policy and on International Trade, sequently available information, such as the 2Vi Investment and Monetary Policy of the Com- percent annual rate of increase in real gross mittee on Banking, Finance and Urban Affairs, national product for the third quarter, the large (7.5. House of Representatives, November 13, increase in retail sales in August and September, 1979. and the record increase in consumer installment credit for September, has in fact confirmed this I am pleased to participate in these hearings on assessment. the goals and conduct of monetary policy. As In retrospect, the suspicion that the secondyou know, this is a subject that has been the quarter performance was heavily affected by the focus of considerable public attention and de- shortage of gasoline seemed confirmed. But the bate recently. That attention is symptomatic of subsequent burst in spending was troubling bethe widespread concern and uneasiness about cause it seemed to reflect in considerable part the performance and prospects of our economy. a "buy now" attitude spurred by an intensifica- All of us—members of this committee, mem- tion of inflationary expectations. Savings bers of the Federal Reserve Board, and citizens dropped to historically low levels, and some generally—would no doubt prefer more equable inventory imbalances seemed to be developing. economic conditions, with the performance of Such a pattern could temporarily provide some financial markets and financial policies relegated strength to business activity. But, if extended, to the back pages of the newspapers. But con- the clear threat was that the ultimate result ditions being what they are, I can only welcome would be to deepen and prolong anticipated this opportunity to contribute to general under- adjustments in production and employment— standing of the problems we face and the ap- adjustments that in part are related to the oil proaches we are taking to their solution. price shock. I would like to set the stage for our dialogue These unsettling developments were plainly this morning by reviewing briefly the decisions related to the inflationary situation. The most taken by the Federal Reserve on October 6, widely watched price index had advanced at an indicating both the circumstances that prompted annual rate in the range of 13 to 14 percent. those decisions and the objectives of our ac- Many Americans, as they struggled to balance tions. In the process, it should be possible to their family budgets and suffered a continuing address in a fairly concrete way some of the erosion in the value of their savings, began to broader issues of monetary strategy that you doubt the prospects for a return to greater stahave indicated you wish to examine. bility. While the acceleration of inflation this Viewed from virtually any vantage point, year has, in large part, been a reflection of a economic developments in the weeks and surge in energy prices, the question remained as to whether the higher rate of inflation would months immediately preceding the Federal Renot be built into wage and other cost elements serve's October 6 announcement were disturbin the economy, defeating the prospects for ing. The level of business activity had dropped some relaxation in price pressures as the bulge in the second quarter, and virtually all econoin energy prices passed. Consequently, in the mists either were predicting a recession or felt Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

959 absence of firm action to deal with inflation and forces that were jeopardizing the orderly funcinflationary expectations, there was a clear risk tioning of financial and commodity markets. that the runup in energy prices would work its The Federal Reserve clearly had a key role to way into wages and prices generally, thereby play in this situation. Although the solution to raising the nation's underlying inflation rate and, the problem of inflation should not reside with among other things, contributing to pressures monetary policy alone, control over money and on oil prices. credit is an essential part of the overall policy That risk was underscored by an apparent framework. In the long run, inflation can conbuildup of speculative pressures in commodity tinue only if it is nourished by excessive monemarkets in September, carrying with it the po- tary expansion; in the short run, it was clear tential of aggravating economic instability. by early fall that the growth in money and credit Rapid price movements in gold and silver mar- was threatening to exceed our own targets for kets, while not of critical importance in them- the year and was nourishing inflationary expecselves, seemed to reflect discouragement over tations. our ability to deal with inflation, and the atmos- Efforts had been made during the summer to phere began to affect movements in the prices slow this excessive rate of money and credit of other metals. The danger was not only that expansion—largely by permitting money market the bidding up of prices in commodity markets interest rates to rise, a process accompanied by would in itself reinforce the inflationary trends several increases in the discount rate. The Ocbut also that it would lead to a brief and unsus- tober 6 actions involved a change in instruments tainable surge of buying. and tactics to reinforce and to underscore our The same expectational forces were reflected intention to achieve moderation in the growth in an atmosphere of increasing uncertainty in of money and bank credit. foreign exchange markets, and in September the The new steps taken did not reflect any dollar weakened against a number of other change in our basic targets for the various monmajor currencies. The external value of the etary aggregates for 1979; they did provide dollar is sensitive to perceptions and expecta- added assurance that those objectives will be tions about our economic prospects and policies, achieved. In doing so, the new measures should and especially to concern about our ability to make abundantly clear our unwillingness to fideal with inflation. And given the central posi- nance an accelerating inflationary process and tion of the dollar in international financial mar- our desire to "wind down" inflationary preskets, as well as the direct impact of a decline sures. in the value of the dollar on the prices of One component of the October 6 package was imports, renewed instability in foreign exchange a change in our operating procedures. In recent markets could undercut prospects for dealing years, with the support of this committee and with inflation generally and for achieving mod- others, explicit targets for the growth of money eration in oil prices in particular. have been a central feature of our approach Under these circumstances, there was in early toward monetary policy. However, the opera- October no conflict or meaningful "trade-off" tional guide from day to day in conducting open between the domestic and international objec- market operations has typically been the sotives of economic policy. Nor was there any called federal funds rate—the rate established real trade-off between inflation and unemploy- in interbank trading of reserve balances. Transment. The clear and present danger was that lation of money stock objectives into day-to-day failure to deal with inflation and inflationary management of the federal funds rate is effective expectations would in time produce more—not if the relationship between the public's demand less—economic instability, ultimately with for cash balances and short-term market interest higher prices and greater unemployment. rates is relatively stable and predictable. But in In that setting, the priority for policy was an environment of high and relatively volatile decisive action to deal with inflationary pres- inflation rates, the relationship between interest sures and to defuse the dangerous expectational rates and money (or for that matter, between Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

960 Federal Reserve Bulletin • December 1979 interest rates and economic activity) is more has initially entailed increases in market rates difficult to appraise. Moreover, the operating of interest. Whether those increases persist, or techniques over time may have contributed to whether they subside rather promptly, will in excessive supplies of credit by encouraging a the end be determined largely by the course of view held by banks or by others that they could the economy and inflation. Control of the money count on access to liquidity at interest rates supply is not synonymous with rising interest reasonably close to whatever levels were cur- rates; it all depends upon the performance of rently prevailing. the economy itself. In the long run, only the Consequently, we are now placing more em- prospect of a lower inflation rate can create the phasis on controlling the provision of reserves environment for a sustained and substantial reto the banking system—which ultimately gov- duction in interest rates. erns the supply of deposits and money—to keep Second, some other important industrialized monetary growth within our established targets. countries have recently experienced increases in In changing that emphasis, we necessarily must their interest rates. These events have been be less concerned with day-to-day or week-to- interpreted by some observers as implying the week fluctuations in interest rates because those existence of an "interest rate war" in the pursuit interest rates will respond to shifts in demand of conflicting exchange rate objectives. That for money and reserves. I would emphasize that, interpretation seems to me unwarranted in cirin an important sense, our objective has re- cumstances in which those countries are remained the same: to achieve the growth of sponding reasonably to inflationary pressures in money that we believe suitable to the nation's their own economies. economic goals. What is involved is a tactical There is, of course, always the possibility that change in the approach to control of the money national economic goals and policies will not stock. We did not before, as we do not now, mesh. I know of no protection against that attempt to maintain a fixed or predetermined possibility other than working continuously pattern of interest rates over time. But changes with our partners abroad to ensure that policies in interest rates will necessarily be observed and take into account our mutual interdependencies evaluated over time, along with the entire array and do not move in mutually damaging direcof economic and financial variables, in reaching tions. Within limits, all major industrial counpolicy judgments. tries have several tools of economic policy at We took two other actions on October 6. The their disposal, and particular elements can be Board approved an increase of 1 percentage emphasized or deemphasized at particular times . point in the discount rate so that restraint on Intervention in foreign exchange markets can bank reserves would not be offset by excessive sometimes be helpful—although experience ilborrowing from the Federal Reserve Banks. lustrates clearly that intervention alone cannot And we placed a special marginal reserve re- substitute for more fundamental actions over quirement of 8 percent on increases in managed time if stability in exchange markets is to be liabilities of larger banks (including U.S. agen- maintained. We continue, on a day-to-day basis, cies and branches of foreign banks) because that to monitor developments in foreign exchange source of funds, which is not included in the markets, and I am satisfied that if and when usual definition of the money supply, has fi- intervention is necessary, our actions can be nanced much of the recent excessive buildup closely coordinated with those of key monetary in bank credit. authorities abroad to maximize their effec- Let me highlight a few points about our tiveness. Meanwhile, we shall continue to concurrent approach, particularly as they bear on sult with our trading partners to assure mutual the broad issues of monetary strategy raised in clarification of our policy objectives and decithe letter of invitation from Chairman Mitchell sions. and Chairman Neal. First, the effort to restrain In that connection, I do not anticipate, in monetary expansion in the face of strong credit practice, the sharp dichotomy in the orientation demands and rising levels of economic activity of monetary policy strategies between "foreign Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 961 exchange" and the "money supply" outlined However, experience shows that many forces in your recent letter. For the foreseeable future, can affect the financial requirements of the a policy that looks toward attaining and main- economy at any time. Other governmental politaining a noninflationary growth in money at cies, institutional changes, exogenous shocks to home would appear broadly compatible with our the economy—emanating from both domestic concern about the international position of the and foreign sources—and changes in the pubdollar. I do not, in any event, view our domestic lic's money preferences can alter the relationand international problems as distinct and sepa- ship between money and economic performrable. Recent experience has shown—all too ance. Rigid adherence to a fixed money stock clearly—that weakness in the value of the dollar path set for years ahead might therefore turn internationally is symptomatic of basic problems out to be inappropriate, sometimes needlessly here at home. wrenching financial markets or unduly con- It is fundamentally inflation that raises ques- stricting our flexibility in responding to some tions about the stability of holdings of dollar- cyclical or other disturbances. If, on the other denominated assets or the outlook for our bal- hand, the targets are changed, or interpreted ance of payments, thereby prompting recurrent more flexibly, unnecessary confusion could downward pressures on the dollar in exchange arise, and the basic rationale would then be markets. And it is inflation and the distortions undermined. it creates that constitute a major impediment to Furthermore, even though we hope that our the resumption of balanced, sustainable eco- new operating procedures will bring some imnomic expansion at home. In that sense, the provement, we must recognize that monetary problems confronting us on the domestic and control will always be imprecise. Recent events international fronts demand a common re- indicate quite clearly that even the problem of sponse, and an essential element in that response specifying precisely the monetary variable that must be a firm and credible monetary policy, should be controlled over a period of years is seeking and attaining appropriate restraint on a very knotty one; what serves as money in our growth in money and credit over time. rapidly changing financial system is far from a The suggestion has been made that this constant. process could be accelerated by setting out a For all of these reasons—and despite the specific target path for future growth in the underlying element of truth in the broad propomoney stock over a number of years. Mr. Neal's sition relating inflation to excessive monetary bill would incorporate such a strategy in law. growth—I think that it would be a mistake to In examining this question, members of the attempt to set rigid and narrow long-range Federal Reserve Board remain of the view that monetary targets. Further, a legislative apthere are decisive drawbacks to setting out so proach—even one with some built-in leeway— precise a growth target over so many years in would raise the basic question as to whether the the future. Congress would want to inject itself so directly We recognize that this approach is rooted in into these judgments, filled with technical coma central element of truth—that a return to price plexity and doctrinal controversy. It does not stability will require, over time, a substantially seem to be consistent with the approach taken reduced rate of monetary and credit growth. by the Congress in establishing the Federal Indeed, the Federal Reserve has often reiterated Reserve System 65 years ago, and consistently in the past the need to reduce growth in money adhered to since, that these decisions should over time if we are to deal with inflation. More- emerge from a dispassionate, professional, deover, some observers would go further, arguing liberative process and be shielded from partisan that by clarifying our intentions in a numerically pressures. precise and simple way we could more deci- I would suggest strongly that the present sively change expectations about inflation, assist system, under which the Federal Reserve reports in achieving a national consensus, and thus its intentions and its targets to the Congress change behavior in a constructive way. within the framework of the Humphrey- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

962 Federal Reserve Bulletin • December 1979 Hawkins Act, is a much more promising ap- I am sure other members of the Board, like proach. This system preserves a necessary de- myself, have profited from your attention to gree of flexibility in monetary management, these important issues of monetary policy. We while providing a good basis for com- particularly welcome your concern with develmunication. While our experience has been oping policies appropriate to the longer-term limited, the present arrangement seems to be future, and look forward to working with you working well. The line of responsibility and as we develop and announce new monetary accountability is clear. targets. • Statement by Nancy H. Teeters, Member, to a reasonable level. Credit programs originally Board of Governors of the Federal Reserve were established to correct imperfections in System, before the Budget Committee, U.S. capital markets, which left credit unavailable to House of Representatives, November 13, 1979. many groups or made its cost prohibitive. For example, the loan programs insured by the Fed- Mr. Chairman and members of the Task Force eral Housing Administration were devised by on the Budget Process, I am pleased to be here the federal government during the Great Deto discuss proposals for improving control over pression to reduce the risk perceived by lenders federal credit programs. I appear before this task in making loans for home purchases. By pooling force because I have had a continuing interest risks across a large number of loans issued in in federal credit programs for a number of years a standardized fashion, the government program and personally consider the lack of comprehen- encouraged private lenders to advance credit at sive controls over these activities to be a major a lower cost to borrowers and on less restrictive shortcoming in the budget process. Other mem- nonrate terms than would otherwise have been bers of the Board of Governors support this possible. As a result, private individuals were position and also the analysis in this statement. able to finance the purchase of homes on terms The need to improve the budget treatment of involving more reasonable interest charges, federal credit activities has long been recog- more liberal loan-to-value ratios, and longer nized. Both the 1963 Report of the President's maturities than before. Another popular mort- Committee on Federal Credit Programs and the gage assistance program has been operated by 1967 Report of the President's Commission on the Veterans Administration. Over time, the Budget Concepts called for reforms in budgetary extension of low down payment, long-term treatment of federal credit programs. To date, mortgages has gained general acceptance by all however, very little progress has been made in types of private lenders. this area. The Congressional Budget Act of Many other federal credit assistance pro- 1974 was particularly disappointing in this re- grams have been introduced over the years to gard because it specifically exempted loan guar- foster desirable social objectives. In contrast to antees from the budget process and did not the home mortgage area, however, the default develop a comprehensive framework for evalu- experience in the case of some of these proating these activities. Given this background, grams—such as student loans and assistance for it was especially heartening earlier this year low-income housing—has been comparatively when the administration indicated its intention high. Thus, the government has had to absorb to establish a system of control for federal credit sizable losses in addition to providing a subsidy programs. to borrowers in the form of loans at below- The provision of credit assistance through market interest rates. In the past few years, the direct loans and loan guarantees in order to federal government has also guaranteed sizable achieve particular social and economic objec- loans to single borrowers that carried a large tives is, of course, a legitimate activity of the potential for default. federal government—provided that the assis- The reference to these recent federal credit tance is handled in a responsible manner and held activities helps emphasize the point that the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 963 benefits of these loan programs are not obtained the budget process as direct federal expendiwithout cost. These costs include not only the tures, the extent of total federal assistance to interest subsidies, the administrative expenses, particular sectors would look much different and the default losses but also the real loss in from what is currently pictured in the unified public welfare that occurs when federal credit budget. The amount of total assistance to agriprograms are expanded beyond socially desira- culture and housing, for example, is substanble and efficient levels. In this regard, the ad- tially greater than the volume of direct loans ministration and the Congress must keep in made to these sectors. Moreover, the American mind that the supply of credit is not unlimited. people and their representatives are not being Direct government loans or loan guarantees that properly informed as to the extent of the govenable one group of borrowers to acquire funds ernment's impact on total credit flows. may make it more difficult for other groups to The magnitude of federal credit activities has obtain credit accommodation. become quite large in recent years and further The potential for such displacement depends, rapid growth is in prospect. Gross loans and of course, on the extent to which the economy's loan guarantees outstanding are estimated to resources are being utilized and on conditions have totaled more than $350 billion in the fiscal in credit markets. During recessionary periods year just ended. This is more than double the when credit supplies are readily available, credit level of $157 billion reached just 10 years ago. assistance programs may result in an increase In addition, loans held by governin total credit flows, and thus may promote a ment-sponsored agencies are projected to have more intensive use of resources and an expan- been $142 billion in fiscal year 1979, up $15 sion in the level of economic activity. On the billion from the year before and more than $100 other hand, in situations when productive re- billion from the level 10 years earlier. Moresources are being pressed by strong demands over, these credit activities are projected to grow for goods and services and credit supplies are rapidly in the years ahead. Last January, for tight, there is a much stronger tendency for example, the administration forecast that net credit extended under federal auspices to sup- credit advanced under federal auspices—direct, plant the loanable funds available to other bor- guaranteed, and sponsored—would increase alrowers. Moreover, to the extent that such pro- most $60 billion in fiscal year 1980. If total grams result in an expansion of spending, up- credit flows in the coming year turn out to be ward pressures on prices may be exacerbated roughly the same as in the past year, then funds and the task of government economic stabiliza- raised under credit assistance will account for tion policy may be complicated. Thus, during about one-sixth of the total net funds raised in periods of unusually strong credit market de- financial markets. mands, the growth of federal credit programs As noted earlier, only a small portion of this may need to be * restrained in order to ease credit activity is ever considered by the Coninflationary pressures. gress in its deliberations on the budget's expen- The recognition that federal credit activities diture targets. Loan guarantees, in particular, involve substantial costs suggests that all such do not involve an expenditure of funds and are programs should be subject to a careful and thus not reflected in the unified budget, except comprehensive examination. As indicated ear- in those instances when appropriations are relier, however, the procedures currently being quired to cover the cost of defaulted loans. followed to evaluate, fund, and account for the Moreover, credit extended by privately owned federal government's direct lending and credit and sponsored credit agencies is not recorded assistance activities are seriously deficient. As in the budget totals, even though the liabilities a result of these deficiencies, the Congress is issued by these agencies to finance their operaonly able to make an imperfect assessment of tions have an implicit (and in some cases exthe effects of all federal credit activities on plicit) government guarantee. economic stabilization and resource allocation. The picture of federal credit activities also If direct loans, loan guarantees, and preferential is clouded by the operation of the Federal Fitax treatment were given the same attention in nancing Bank. The FFB uses funds borrowed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

964 Federal Reserve Bulletin • December 1979 directly from the Treasury to support the lending gress is to be supplied with the data required activities of federal agencies and to acquire for making informed decisions, such differences certain types of guaranteed loans. By operating must be eliminated. in this way, the FFB has successfully carried One tool that might prove useful in evaluating out its mandate, since it has eliminated the the impact of federal credit activities on overall congestion that often occurred when the agen- credit demands is the flow of funds accounts. cies attempted to finance their operations di- Flow of funds statistics for past periods and rectly in the credit markets. By relieving this projections of credit flows for future periods are congestion, the FFB also has helped to reduce readily available. The use of these data will the interest costs of such programs. In fulfilling serve to emphasize that the nation's credit supits function, however, the FFB has reduced the ply has limits and to indicate that some sectors accountability of federal credit programs be- may be adversely affected by federal credit cause lending activities are attributed to the FFB activities. Furthermore, focusing on the govrather than to the agency originating the trans- ernment involvement in overall credit flows action. should facilitate the coordination of fiscal and These problems of accountability are matched monetary policies. by imperfections in the congressional review The administration's study also has suggested process. All federal credit programs, of course, that sales of certificates of beneficial ownership have been authorized by law and are subject (CBO) be treated as a form of borrowing rather to oversight by the Congress. In the case of than as a negative outlay. This proposal should some loans made by "on budget" agencies, this be adopted, given past attempts by agencies to oversight is conducted annually. However, most hold down net loan activities and hence outlays programs are not subject to annual review, as through the use of offsetting CBO sales. Anothauthorizations to engage in activities frequently er proposal that seems sensible involves reare set for several years. Moreover, credit limits quiring FFB purchases of guaranteed loans to often are stated in terms of net credit extended be attributed to the agency originating the guar- (or loans guaranteed) rather than in terms of the antee. Additional legislation, however, may be gross volume of such lending activity. needed in order to prevent agencies from cir- In general, these accountability problems— cumventing this allocation process. Agencies, especially as regards resource allocation and for example, should be prohibited from guaranstabilization policy—could be improved by es- teeing obligations sold to the public when the tablishing a federal credit control budget along issues resemble assets currently being sold to the lines suggested by the administration. Under the FFB. The inclusion of all direct lending and this approach, annual limits would be placed loan guarantees in the credit control system and on gross loan activity for both direct and the imposition of limitations on these programs, guaranteed loans. These legally binding limita- of course, will reduce incentives to channel loan tions would be established annually and would guarantees away from the FFB. Safeguards will be included in the Presidential and congressional also have to be established to constrain agencies budget process. When faced with a credit limit, from turning to other arrangements—such as the Congress would be forced to consider how increased regulatory activity, long-term leasing each program affects the ceiling and how it agreements, and price support activities—that integrates with other credit and noncredit pro- can be used to achieve the same allocation grams to achieve specific budget objectives. purposes as loan guarantees. To implement such a control program suc- In general, the scorekeeping proposals set cessfully, the Congress should establish a uni- forth by the administration in last January's form set of accounting procedures for the agen- budget appear sound. However, logic would cies to follow. At the present time, wide dif- argue against the recommendation to keep direct ferences exist among agencies in their defini- lending of federal agencies in the unified budget. tions of assistance provided under credit pro- In the Board's view, direct loans should be grams and in the procedures followed in col- taken out of the unified budget and recorded lecting and processing credit data. If the Con- instead in a carefully controlled credit assistance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 965 budget. After all, they are not the same as other tion's credit control proposals. Rather, it would government outlays, since financial assets are be advisable in our view to push ahead and to acquired in conjunction with the disbursal of set up the new control system and then to make funds. In addition, direct loans appear to have adjustments to this system, if the commission's essentially the same implications for economic studies deemed such changes to be desirable. stabilization, resource allocation, and income The establishment of a credit control budget distribution as do loan guarantees. The removal to appraise, control, and keep track of federal of direct loans from the unified budget assumes, credit programs should lead to the proper evalof course, that coincidentally a comprehensive uation of new programs and, at the same time, federal credit budget will be adopted, thus pre- insure that such activities are subject to wide venting any loss in the scrutiny and control of publicity and intense review. Past experience, these programs. Certainly such a change should however, suggests that the mind of man can be not be made until the credit budget is in place highly inventive. Whatever restrictions are and working. placed on fiscal activities or credit programs, While a broad range of questions pertaining ways may be found to circumvent them. Thus, to the budgetary treatment of federal credit the Congress should carefully consider the adactivities have been covered by the administra- visability of establishing formal rules to require tion, a number of other important issues did not the reconvening, at regular intervals, of a budreceive adequate attention. First, procedures getary commission to review the conceptual and need to be developed that will permit policy- measurement problems associated with the unimakers to determine the trade-offs between ac- fied and credit control budgets. complishing social objectives through direct Finally, consideration should be given to esoutlays on the one hand and through federal tablishing a credit control office within the Concredit programs on the other. Similar criteria gressional Budget Office in order to provide the need to be developed to provide guidance for Congress with detailed technical data on the choosing between giving credit assistance costs and benefits of federal credit programs and through direct loans or through loan guarantees. with up-to-date scorekeeping reports on federal Second, the budgetary treatment of nonre- credit activities. These reports also would incourse loans—such as those made by the Com- clude a credit information system that encommodity Credit Corporation to farmers—should passes total federal lending activity by budget be studied in greater detail. Since nonrecourse function and by economic sector. Ideally, such loans need not be repaid, an ongoing question a system also would provide information that exists as to whether these transactions should highlights the federal government's total inbe treated as outlays or as loans at the time volvement in, and assistance to, sectors in the the funds are disbursed. Similar accounting form of direct outlays, direct loans, loan guarquestions also can be raised in connection with antees, and tax expenditures. other direct nonrecourse loan programs, espe- To sum up, the Board of Governors fully cially foreign loans. For example, the account- supports the administration's decision to estabing and budgetary treatment of funds disbursed lish a credit budget. Such action is urgently as loans under the International Development needed to improve our ability to evaluate and and International Security Assistance programs control federal credit activities. In addition, we is far from clear, since the ultimate collectibility believe that a standing commission should be of such loans may depend on unforeseen inter- formed to study carefully a numer of unannational developments. swered questions regarding the accounting Given the importance of these unanswered treatment of federal credit programs and that a questions, the Board believes that a new budget credit control office should be established in commission should be appointed to study these order to provide the Congress with the technical issues. The creation of a new commission need data and analysis that are needed for control not delay the implementation of the administra- purposes. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

966 Announcements CONSUMER ADVISORY COUNCIL: professions, and product safety. She develops policy positions and litigates cases on NEW MEMBERS behalf of Consumers Union. She is an Ad- The Federal Reserve on November 21, 1979, junct Professor at Antioch School of Law, teaching debtors' and creditors' rights. named 13 new members to its Consumer Advi- Richard S. D'Agostino, Philadelphia, sory Council to replace persons whose terms Pennsylvania, who has been employed by have expired and to expand the Council to 30 Girard Bank since 1952. His current remembers. sponsibilities include all installment lending The Council advises the Board in the field and credit-card operations, and he has previous experience with branch banking and of consumer credit protection laws. Its members commercial lending. He is the Director of come from all parts of the country and include the Pennsylvania Bankers Association a broad representation of consumer and creditor School, was formerly a member of the Exinterests. ecutive Committee of the Deposits Division William D. Warren, Dean of the School of of the American Bankers Association, and has been active in a number of business and Law of the University of California at Los civic organizations. He has spoken to both Angeles, is Chairman. Marcia A. Hakala, Aslender and consumer groups in Pennsylvania sistant to the Vice Chancellor, University of on the consumer credit protection regula- Nebraska Medical Center, is Vice Chairman. tions. Leonor K. Sullivan serves as Chairman Emeri- Joanne Faulkner, New Haven, Connecticut, who has been an attorney with the New tus. Haven Legal Assistance Association since Meetings of the Council are quarterly and are 1966, with cases covering all aspects of open to the general public. consumer law. She is serving as the Chair- The Council's new members, named for person of the Consumer Law Section of the three-year terms, are as follows: Connecticut Bar Association and on the Executive Committee of the Board of Directors Julia H. Boyd, Washington, D.C., who of the National Consumer Law Center in serves as Director of Credit for Woodward Boston. Other activities include a term on & Lothrop, Inc., the Washington, D.C.- the Connecticut Advisory Committee on based regional department store chain. She Recodification of Banking Laws. has been with the chain for more than 20 Vernard W. Henley, Richmond, Virginia, years and formerly was Assistant Controller. who has been President of the Consolidated She is chairman of the Washington Shopping Bank and Trust Company since 1971. Pre- Plate Association and First Vice President viously he was Vice President and Executive of the Washington chapter of the Interna- Vice President. His banking career began in tional Consumer Credit Association. She has 1951 with a bank in North Carolina, and had many years experience dealing with he joined Consolidated in 1958. He has been consumer credit matters and is familiar with active with the American Institute of Bankcompliance problems, especially for small- ing, the American Bankers Association, and and medium-size retailers. various civic and charitable organizations, Ellen Broadman, Washington, D.C., who including the Red Cross, the Boy Scouts of is an attorney with Consumers Union and America, the Salvation Army Boys Club, has several years experience in consumer the United Negro College Fund, and many credit rights. She has been a frequent con- others. gressional witness and has participated in Juan Jesus Hinojosa, McAllen, Texas, federal administrative proceedings, with who is presently an Assistant Attorney Genemphasis on banking, credit, regulation of eral of Texas, with the primary respon- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

967 sibility of enforcing the Texas Deceptive Credit Committee and is responsible for an- Trade Practices-Consumer Protection Act. alyzing consumer credit legislation on the He has been with the Attorney General's national and state level. She has recently office since 1976; before then he was legal been appointed to the Board of the National counsel to the Texas Secretary of State and Consumer's League. a Senior Staff Attorney for the Nueces Rene H. Reixach, Rochester, New York, County Legal Aid Association in Corpus who has been a staff attorney with the Christi, where he dealt with both federal and Greater Upstate Law Project since 1973. The state consumer credit laws. He presently is project provides litigation and training asa board member of the Texas Rural Legal sistance to all Legal Services offices in New Aid Association in Weslaco, Texas. He is York Slate outside New York City. He ada member of the Board of Directors of the vises and assists attorneys whose clients Section on the Concerns of the Spanish- have consumer credit problems. He has been Speaking Community of the State Bar of actively involved in challenges to collection Texas and of the Chicano Bar Association. practices, security interests in household Also, he is the Chairman of the Board for goods, and other consumer credit matters. the Tri-County Rural Housing Corporation. Peter D. Schellie, Washington, D.C., Shirley T. Hosoi, Los Angeles, Califor- who has been actively involved in consumer nia, who is Assistant Vice President, Mar- credit matters since 1970. Before moving to keting for Western Bancorporation, where Washington, he served for four years as she develops and implements consumer Chief Legislative Counsel to the Governor banking programs. She is responsible for of Indiana. He established the Washington research on consumer attitudes and develop- office of an Indianapolis law firm in 1976 ment of products to meet consumer needs. and was the Legislative Director for Senator Previously, she had similar responsibilities Richard Lugar during 1977, returning to with United California Bank, the lead bank private practice in January 1978. While on for the holding company. Sen. Lugar's staff, he was actively involved Francis Thomas Juster, Ann Arbor, in the drafting of consumer credit legisla- Michigan, who is the Director of the Insti- tion, including proposed simplification of tute for Social Research and a professor of Truth in Lending and the Electronic Fund economics at the University of Michigan. He Transfer Act. also serves frequently as a consultant for a Charlotte H. Scott, Charlottesville, Virnumber of business and government entities. ginia, who is University Professor of Busi- He has more than 25 years experience as ness Administration and Commerce and a a research analyst in economics, with the Research Associate of the Tayloe Murphy National Bureau of Economic Research from Institute at the University of Virginia, where 1959 to 1973 and with the Institute of Social she has been since 1976. She was an Assist- Research since then. ant Vice President at the Federal Reserve Robert J. McEwen, S.J., Boston, Massa- Bank of Chicago from 1971 to 1976, as well chusetts, who is a senior member and past as an economist at the Bank from 1956 to Chairman of the Economics Department of 1971. She has a strong background in re- Boston College. He is one of the original search on consumer finance and savings flow incorporators of the Consumer Federation of analysis. America and the first President of the Federation. He also was a founder of the Conference of Consumer Organizations, and he served as an advisory council member for PROPOSED ACTION the Consumer Product Safety Commission. He served for two years as President of the The Federal Reserve Board on November 26, American Council on Consumer Interests 1979, issued a proposal to add a new section and was the first Chairman of the Massato its Regulation J (Collection of Checks and chusetts State Consumers Council. Father McEwen has also been a member of the Other Items and Transfer of Funds) governing President's Consumer Advisory Council. the clearing and settlement of payments that Margaret Reilly-Petrone, Clifton, New would deal with the handling of electronic Jersey, who is a Professor of Economics at fund transfers made through automated clearing- Montclair State College and has been a houses operated by the Federal Reserve. member of the Executive Board of the Consumers League of New Jersey since 1974. The Board asked for comment on its proposal She is Chairman of the League's Consumer by January 31, 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

968 Federal Reserve Bulletin • December 1979 REGULATION O: AMENDMENTS company controlled by, and political or campaign committees controlled by, or benefiting The Federal Reserve Board on November 21, from, bank officials and shareholders. For the 1979, published amendments to its Regulation purposes of reporting requirements, Regulation O (Loans to Executive Officers, Directors, and O, as amended, defines a correspondent bank Principal Shareholders of Member Banks) to as a bank that maintains at an insured bank an implement the reporting requirements of Titles account that exceeds an average daily balance VIII and IX of the Financial Institutions Regu- of more than $100,000 or 1/2 percent of the latory and Interest Rate Control Act of 1978 insured bank's total deposits. (FIR A). 2. Each insured bank forward a publicly The Board's revised regulation, effective De- available annual report to the appropriate bankcember 31, applies to both state-chartered ing agency listing the name of each executive member banks and national banks. The Office officer or principal shareholder who files a report of the Comptroller of the Currency has con- of indebtedness with the bank's board of direccurred in the amendments. The revisions were tors, and the aggregate amount of indebtedness adopted by the Board after consideration of of these persons and their related interests to comment received following publication of pro- the insured bank's correspondent banks. posed amendments in March. To implement Title IX, the revised regulation Title VIII of FIRA prohibits banks that main- requires that each insured bank file with its tain correspondent account relationships with appropriate regulator an annual report, available other banks from extending credit on prefer- to the public on request, listing the names of ential terms to one another's executive officers, the bank's principal shareholders as of Dedirectors, and principal shareholders, or from cember 31, a list of executive officers and establishing a correspondent relationship when principal shareholders of the bank who were one of the banks involved has outstanding pref- indebted, or whose related interests were inerential credits to an executive officer, director, debted to the bank during the year, and the or principal shareholder of the other bank. aggregate amount of such debt to the bank. As one basis for enforcing its requirements, The first such annual report will cover the Title VIII of FIRA establishes reporting re- period from July 1, 1979, to December 31, quirements applying to executive officers and 1979. principal shareholders of insured banks, and a Executive officers and principal shareholders related report by the bank. filing reports of indebtedness under Title VIII Title IX requires public disclosure in annual will file before January 30, 1980, and the inreports by insured banks of principal share- sured banks will file reports with their approholders and executive officers who are in debt priate regulators based on these reports by to the bank or its correspondent banks, and the March 31. aggregate amount of such indebtedness during the year. To implement Title VIII, the revised regula- REGULATION F: AMENDMENTS tion requires that: 1. Each executive officer and principal The Federal Reserve Board on November 23, shareholder of an insured bank should report 1979, adopted amendments to its Regulation F annually, to the bank's board of directors, their (Securities of Member State Banks) reflecting own indebtedness and that of their "related rule changes adopted by the Securities and Exinterests" to each of the insured bank's corre- change Commission. The SEC Act requires that spondent banks, the amount of debt outstanding the federal bank regulators adopt rules and reg- 10 days before the report is filed, the range of ulations, applicable to banks they supervise, interest rates on such loans, and other terms and comparable with requirements of the SEC's conditions of the loans. A related interest is a rules. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 969 REGULATION K: AMENDMENTS 1. Banks that engage in futures, forward, or standby contract transactions should do so only The Federal Reserve Board on November 29, in accordance with safe and sound banking 1979, approved expedited procedures under practices. which subsidiaries of U.S. banking organi- 2. Such transactions should be of a size reazations may establish branches in foreign counsonably related to the bank's business needs and tries. to its capacity to fulfill obligations incurred. The amendments to the Board's Regulation 3. The positions banks take in futures, for- K (International Banking Operations) liberalize ward, and standby contracts should be such as these procedures. to reduce the bank's exposure to loss through interest rate changes affecting securities in the bank's investment portfolio. BANK REGULATORY 4. Policy objectives should be formulated in POLICY STATEMENT the light of the bank's entire mix of assets and The three federal bank regulatory agencies on liabilities. November 15, 1979, issued a joint policy state- 5. Standby contracts calling for settlement in ment setting forth precautionary rules and spe- excess of 150 days should not be issued by cific guidelines for commercial banks that en- banks except in special circumstances and ordigage in futures, forward, and standby contracts narily such long-term standby contracts would for U.S. government and agency securities. be viewed by the agencies as being inappro- The policy statement is effective January 1, priate. 1980, for contracts outstanding at that time and The policy statement also provided a 10-point for those to be entered into subsequently. How- set of guidelines that should be followed by ever, the agencies invited comment on the pol- banks authorized to participate in these markets. icy statement through December 15, 1979. The guidelines included directives on the role The agencies noted the following background of bank boards of directors, recordkeeping, to the general guidance they gave to commercial monitoring of such activities, valuation of conbanks engaging in interest rate futures, forward, tracts, treatment of fee income in connection and standby contracts on U.S. government and with a standby contract, disclosures of activity agency securities. by a bank in futures, forward, and standby A recent Treasury-Federal Reserve study in- contracts, monitoring of credit risk exposure, dicated that banks can effectively use financial and internal controls at banks. futures contracts to hedge their risk of losses The agencies said they will closely monitor due to changes in interest rates but noted that bank transactions in financial futures, forward, improper use of interest rate futures contracts and standby contracts and that, depending on increases, rather than decreases, the risk of loss what this monitoring discloses, they might find due to changes in interest rates. it necessary to establish position limits or take The study also cited the experience of partic- other supervisory precautions against unsafe or ipants in financial futures markets who have unsound practices. been approached by salespersons who suggested The agencies said that they may issue a simispeculative rather than hedging transactions and lar policy statement for bank trust departments indicated that some banks and other financial and trust companies later. institutions have issued standby obligations for delivery of securities at predetermined prices in FOREIGN EXCHANGE SURVEY contracts that were so large they exposed the institutions to losses that could, and in some The Federal Reserve Board on November 28, cases did, affect their financial condition. 1979, approved a survey to be conducted in The agencies' policy statement provided the March of the daily foreign exchange transacfollowing precautionary rules: tions of 90 banks and 17 foreign exchange Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

970 Federal Reserve Bulletin • December 1979 brokers known to be active in the foreign ex- SUPERVISORY POLICY change market. FOR FINANCIAL INSTITUTIONS The survey is intended to provide up-to-date information on the growth of foreign exchange The Federal Financial Institutions Examination activity by U.S. banks and brokers, and changes Council on November 29, 1979, announced its in practices and structure in the foreign ex- endorsement of a uniform policy for supervising change market. financial institutions that participate in certain The survey, similar to those conducted in U.S. government guaranteed loan programs and 1966, 1969, and 1977, will be carried out by recommended adoption by the federal agencies the Foreign Exchange Trading Desk of the Fed- represented on the Council. eral Reserve Bank of New York. The policy endorsed by the Council concerns the participation of federally supervised financial institutions in U.S. government guaranteed SURVEY ON TRUST ASSETS loan programs that (1) provide lenders a partial The Federal Financial Institutions Examination guarantee of principal and interest and (2) allow Council on November 14, 1979, announced for the separate sale of the guaranteed portions approval of a uniform survey to be made an- of the loans to third parties. Guarantees of nually by the three federal bank supervisory principal and accrued interest are usually up to agencies to collect information on the assets of 90 percent of the total involved. Sales of the bank trust departments and trust companies and guaranteed portions of these loans to third paron their collective investment funds. ties are usually in the form of 100 percent The uniform survey will take the place of guaranteed certificates of participation. Such separate annual surveys on trust assets by the programs are currently being administered by Federal Deposit Insurance Corporation, the the Small Business Administration and the Federal Reserve Board, and the Office of the Farmers Home Administration. Participating fi- Comptroller of the Currency. It will also replace nancial institutions may be originators, sellers, an annual survey on collective investment funds servicers, or purchasers of the guaranteed loans. previously done by the Office of the Comp- The supervisory policy endorsed by the troller. A collective investment fund is, in ef- Council is designed to help achieve uniform and fect, a mutual investment fund operated by a effective supervision of participating financial trust institution for the investment of the trust institutions and is not a reflection upon the accounts of its customers. guarantee programs or of institutions partici- The information to be collected on trust assets pating in them. is the same in all major respects as that pre- The Council recommended that the Federal viously collected individually by the agencies, Deposit Insurance Corporation, the Federal but the number of items to be reported on the Home Loan Bank Board, the Federal Reserve collective investment funds has been substan- Board, the National Credit Union Administratially reduced. tion, and the Office of the Comptroller of the The new trust survey is the first such uniform Currency approve and implement the supervireport to be mandated by the Council. It will sory policy for the institutions they supervise reduce the overall reporting burden of banks in to help assure sound and prudent financial this area and result in savings at the regulatory operations. [The Federal Reserve approved the agencies by reduction of their administrative policy on December 6, 1979.] costs. In taking its action, the Council noted three The new report form will be used by bank areas of supervisory concern that the policy trust departments and federally supervised trust would address: portfolio management, accountinstitutions to report their assets and provide ing for fee income, and asset liquidity. Portfolio basic information about collective investment management is regarded as being important funds they administer. As previously, results especially for originating and selling institutions will be published by the Federal Deposit Insur- as they can become responsible for servicing ance Corporation. a greater number of loans, or loans more re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 971 motely located, than would normally be consid- FEDERAL RESERVE ered prudent. The Council-endorsed policy READINGS ON INFLATION urges examiners to evaluate carefully each in- A selection of speeches and articles by officials stitution's origination and servicing practices. and staff economists throughout the Federal A potential accounting problem arises if a Reserve System has been compiled by the Fedselling institution attempts to accelerate the receral Reserve Bank of New York. It is designed ognition of servicing charges as income by such to provide a comprehensive explanation of the methods as charging a loan premium in lieu of inflationary process, its effects, and its policy regular servicing fees or of booking the present implications. value of part or all of the anticipated service This 272-page booklet is primarily intended fee as current income. Such practices tend to as a teaching resource for teachers of economics distort the selling institution's income statement and all interested economy watchers. The price for both current and future periods and may lead is $2.00 per copy. Requests for copies may be an institution to originate and sell loans solely sent to Public Information, Federal Reserve to bolster current income. The proposed policy Bank of New York, 33 Liberty Street, New would therefore require selling institutions to York, New York 10045. recognize as income servicing fees and premiums only as they are earned. The Council's primary supervisory concern SYSTEM MEMBERSHIP: for purchasing institutions is the possible effect ADMISSION OF STATE BANK of purchases on their liquidity. No formal secondary market currently exists for the guaran- The following bank was admitted to memberteed portions of U.S. government guaranteed ship in the Federal Reserve System during the loans. These investments are therefore not as period November 11 through December 10, readily marketable as investments for which 1979: such a market and a uniform pricing structure Oklahoma exist. The recommended policy would restrict Norman United Bank of Norman consideration of the guaranteed portions of these loans as liquid assets in agency formulas for monitoring institution liquidity. BANKING DATA ON REPORTS OF CONDITION AND INCOME SUPPLEMENT TO FEDERAL Two changes in the subscription service for banking data based on reports of condition and RESERVE COMPLIANCE HANDBOOK income, effective January 1, 1980, are as fol- The second supplement to the Federal Reserve lows: Compliance Handbook, which incorporates 1. The price for all magnetic tapes—past and Regulation E (Electronic Fund Transfers) mate- present—will be $70 each. rial, is now available. 2. The 1960-71 report of condition seven- Requests for copies may be sent to Publica- tape series will no longer be available. It will tions Services, Room MP-510, Board of Gov- be replaced by a semiannual individual magnetic ernors of the Federal Reserve System, Wash- tape for each date that contains both face and ington, D.C. 20551. back of the report of condition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

972 Record of Policy Actions of the Federal Open Market Committee MEETING HELD ON OCTOBER 6, 1979 Domestic Policy Directive This meeting of the Committee was called by the Chairman to consider actions that might be taken, in conjunction with actions being contemplated by the Board of Governors, to improve control over the expansion of money and bank credit in the light of developing speculative excesses in financial and commodity markets and additional evidence of strong inflationary forces in the economy. Special attention was given to the conduct of open market operations in order to contain growth in the monetary aggregates within the ranges previously adopted by the Committee for the year ending in the fourth quarter of 1979. The information available at the time of the meeting suggested somewhat stronger economic activity in the third quarter than had been indicated at the time of the Committee's meeting on September 18, and real output of goods and services was estimated to have recovered a significant part of the second-quarter decline. According to staff projections, however, a decline in activity in the fourth quarter still appeared probable. Prices on the average were continuing to rise somewhat more rapidly than anticipated earlier, in part because of additional large increases in energy items and renewed upward pressures on foods. Moreover, developments in spot and futures markets for a number of commodities were indicative of an intensification of speculative activity and of the possibility of a further surge in prices. In foreign exchange markets the weighted-average value of the dollar against major foreign currencies had declined substantially since the Committee's meeting in mid-September, and monetary authorities had purchased, net, a large amount of dollars. Over the last few days dollar exchange rates had strengthened somewhat and gold prices had fallen considerably from record highs, apparently in anticipation of official actions to support the dollar. However, the atmosphere in the exchange markets remained sensitive and unsettled. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

973 In accordance with the Committee's decision at its meeting on September 18, open market operations initially were directed toward a slight increase in the federal funds rate to about IIV2 percent. On September 18, moreover, the Board of Governors announced an increase in Federal Reserve Bank discount rates from IOV2 to 11 percent. Subsequently, open market operations were aimed at maintaining the funds rate at about 1IV2 percent, although the rate generally was somewhat higher during the week preceding this meeting. Interest rates had remained under considerable upward pressure since mid- September, and most yields had risen to new highs for the year. The monetary aggregates—M-l and M-2—continued to expand at rapid rates in September, and growth in bank credit appeared to have accelerated appreciably from its pace in the prior two months. Banks were reported to have financed a substantial portion of their loan growth through sizable increases in the outstanding volume of large-denomination certificates of deposit and through continued large borrowings in the Eurodollar market. 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, IV2 to 4V2 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. After allowance for the deviation from the earlier estimate, the equivalent range for M-l was 3 to 6 percent. Over the first three quarters of the year, growth in M-l, M-2, and M-3 was within the ranges for 1979 set by the Committee. However, growth in all three monetary aggregates became increasingly rapid after the first quarter. Thus M-l grew at annual rates of about IV2 and 9V2 percent in the second and third quarters respectively, after a decline at a rate of about 2 percent in the first quarter. Growth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

974 Federal Reserve Bulletin • December 1979 in M-2 and M-3 accelerated to annual rates of about 12 percent and 10V4 percent respectively in the third quarter. For bank credit, growth exceeded its 1979 range in each of the first three quarters. In order that growth of the monetary aggregates fall within the Committee's ranges for the whole of 1979, expansion during the final quarter of the year would have to slow substantially from the rapid rates of recent months. In the Committee's discussion of policy for the period immediately ahead, the members agreed that the current situation called for additional measures to restrain growth of the monetary aggregates over the months ahead. The members felt that growth of the aggregates at rates within the ranges previously established for 1979 remained a reasonable and feasible objective in the light of the available information and the business outlook. Given that objective, most members strongly supported a shift in the conduct of open market operations to an approach placing emphasis on supplying the volume of bank reserves estimated to be consistent with the desired rates of growth in monetary aggregates, while permitting much greater fluctuations in the federal funds rate than heretofore. A few members, while urging strong action to restrain monetary growth, expressed some preference for continuing to direct daily open market operations toward maintenance of levels of the federal funds rate and other short-term interest rates that appeared to be consistent with the Committee's objectives for growth in the monetary aggregates. The advantages and disadvantages of the different approaches were discussed. The principal reason advanced for shifting to an operating procedure aimed at controlling the supply of bank reserves more directly was that it would provide greater assurance that the Committee's objectives for monetary growth could be achieved. In the present environment of rapid inflation, estimates of the relationship among interest rates, monetary growth, and economic activity had become less reliable than before, and monetary growth since the first quarter of 1979 had exceeded the rates expected despite substantial increases in short-term interest rates. Committee members recognized that for a number of reasons the relationship between growth of various reserve measures and growth of the monetary aggregates was not precise; thus the shift in emphasis to controlling reserves improved prospects for achievement of the Committee's objectives for monetary growth over the next few months but did not assure it. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 975 Committee members suggested that the shift in operating techniques, along with the other actions being contemplated by the Board of Governors, would tend to increase confidence at home and abroad in the System's determination to achieve its objectives for monetary growth and to avoid further deterioration in the inflationary outlook. Partly because it would increase uncertainty about the near-term course of interest rates, the new operating technique should induce banks to exercise greater caution in extending credit and might dampen speculative behavior by increasing its risks and costs. Altogether, the System's action would tend to moderate inflationary expectations, thereby exerting a constructive influence over time on decisions affecting wages and prices in domestic markets and on the value of the dollar in foreign exchange markets. The observation was made that the new emphasis in open market operations might be accompanied by larger increases in interest rates in the immediate future than would otherwise occur. On the other hand, the emphasis on reserves also could be expected to produce a shift toward easier conditions in money markets more promptly whenever the demand for money and credit abated significantly in response to a weakening in economic activity. The point was made that an easing in money market conditions under circumstances in which growth of monetary aggregates was restrained, economic activity was weakening, and the rise in prices was moderating should not adversely affect inflationary expectations and the value of the dollar in foreign exchange markets. At the conclusion of the discussion and after full consideration of the advantages and disadvantages of alternative courses of action, the Committee agreed that in the conduct of open market operations over the remainder of 1979 the Manager for Domestic Operations should place primary emphasis on restraining expansion of bank reserves in pursuit of the Committee's objective of decelerating growth of M-l, M-2, and M-3 to rates that would hold growth of these monetary aggregates over the year from the fourth quarter of 1978 to the fourth quarter of 1979 within the Committee's ranges for that period. Specifically, the Committee instructed the Manager to restrain expansion of bank reserves to a pace consistent with growth from September to December at an annual rate on the order of 4Vi percent in M-l and about IVi percent in M-2 and M-3, provided that in the period before the next regular meeting the federal funds rate remained Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

976 Federal Reserve Bulletin • December 1979 generally within a range of IIV2 to 15V2 percent. Because such rates of expansion would result in growth of the monetary aggregates in the upper part of their ranges for the year, the Committee also agreed that over the three-month period somewhat slower growth would be acceptable. The Committee anticipated that the shift to an operating approach that placed primary emphasis on the volume of reserves would result in both a prompt increase and greater fluctuations in the federal funds rate. It was recognized that on particular days, or for several days, the federal funds rate might rise above or fall below the general limits established, and those limits were interpreted to apply to weekly averages. The Committee also agreed that it would consider whether supplementary instructions were needed if it appeared that operations to achieve the necessary restraint in expansion of reserves would tend to maintain the federal funds rate within 1 percentage point of the upper limit of its range of IIV2 to 15V2 percent. It was understood, moreover, that the Committee's decisions with respect to open market operations in the period immediately ahead had implications for Federal Reserve Bank discount rates. The following domestic policy directive was issued to the Federal Reserve Bank of New York: Taking account of past and prospective developments in employment, unemployment, production, investment, real income, productivity, international trade and payments, and prices, the Federal Open Market Committee seeks to foster monetary and financial conditions that will resist inflationary pressures while encouraging moderate economic expansion and contributing to a sustainable pattern of international transactions. At its meeting on July 11, 1979, the Committee agreed that these objectives would be furthered by growth of M-l, M-2, and M-3 from the fourth quarter of 1978 to the fourth quarter of 1979 within ranges of IV2 to 4V2 percent, 5 to 8 percent, and 6 to 9 percent respectively, the same ranges that had been established in February. The range for M-l had been established on the basis of an assumption that expansion of ATS and NOW accounts would dampen growth by about 3 percentage points over the year. It now appears that expansion of such accounts will dampen growth by about IV2 percentage points over the year; thus, the equivalent range for M-l is now 3 to 6 percent. The associated range for bank credit is IV2 to IOV2 percent. The Committee anticipates that for the period from the fourth quarter of 1979 to the fourth quarter of 1980, growth may be within the same ranges, depending upon emerging economic conditions and appropriate adjustments that may be required by legislation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of FOMC 977 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 restrain expansion of reserve aggregates to a pace consistent with deceleration in growth of M-l, M-2, and M-3 in the fourth quarter of 1979 to rates that would hold growth of these monetary aggregates over the whole period from the fourth quarter of 1978 to the fourth quarter of 1979 within the Committee's longer-run ranges, provided that in the period before the next regular meeting the weekly average federal funds rate remains within a range of 11 Vi to 15!/2 percent. The Committee will consider the need for supplementary instructions if it appears that operations to restrain expansion of reserve aggregates would maintain the federal funds rate near the upper limit of its range. 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.) On October 6, after the meeting of the Committee, the Board of Governors unanimously approved complementary actions also directed toward assuring better control over the expansion of money and bank credit and toward curbing speculative excesses in financial and commodity markets. Specifically, the Board approved an increase in Federal Reserve Bank discount rates from 11 percent to 12 percent and established a marginal reserve requirement of 8 percent on increases in the total of managed liabilities of member banks, Edge corporations, and U.S. agencies and branches of foreign banks. (Managed liabilities include large-denomination time deposits with maturities of less than one year, Eurodollar borrowings, repurchase agreements against U.S. government and federal agency securities, and borrowings of federal funds from institutions other than members of the Federal Reserve System.) Subsequently, on October 22, 1979, the Committee held a telephone conference to review the situation and to consider whether supplementary instructions to the Manager were needed. Since October 6, expansion of total reserves had exceeded the pace consistent with the Committee's objective for growth of the monetary aggregates during the fourth quarter. At the same time, the federal funds rate had begun fluctuating close to the upper limit of the 11 Vi to 15 l/i percent range established by the Committee. It was recognized that the desired restraint in the expansion of total reserves might involve continued Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

978 Federal Reserve Bulletin • December 1979 pressure on money market conditions, including higher levels of member bank borrowings from the Federal Reserve than had been anticipated, as banks made orderly adjustments that would in time slow monetary growth. It was not clear, however, that retention of the 15V2 percent upper limit of the range for the federal funds rate would be inconsistent with the desired restraint on monetary growth. Moreover, unsettled conditions in financial markets also suggested no change in the upper limit of the range for the federal funds rate. Consequently, no change was proposed in the domestic policy directive issued at the meeting on October 6. 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

Law Department Statutes, regulations, interpretations, and decisions AMENDMENTS TO REGULATION F so obligated, eight copies, including all exhibits, of a short form statement on Form F-l 1A and send The Board of Governors has adopted amendments one copy each of such form to the bank at its to its Regulation F, Securities of State Member principal executive office, by registered or certified Banks, consistent with the recent amendments to mail, and to the principal national securities excomparable regulations of the Securities and Exchange where the security is traded: Provided, change Commission, concerning (A) Beneficial That it shall not be necessary to file a Form F-l 1A Ownership and Acquisition Statements, (B) Corunless the percentage of the class of equity security porate Governance, (C) Management Remunerabeneficially owned as of the end of the calendar tion, (D) Changes in Independent Auditor Fees, year is more than 5 per cent: And provided further, and (E) Simplification and Other Commission That: Amendments. Forms F-l, F-2, F-3, F-4, F-5, and (1) Such person has acquired such securities in F-ll have been revised and a new form F-11A the ordinary course of his business and not with has been adopted. the purpose nor with the effect of changing or Effective December 31, 1979, Regulation F is influencing the control of the bank, nor in connecamended as follows: tion with or as a participant in any transaction 1. Section 206.4(h) of Regulation F is amended having such purpose or effect, including any by revising subsections (3)-(5) and by adding transaction subject to § 206.4(h)(5)(i); and subsection (6)-(8) to read as follows: (2) Such person is: (i) A broker or dealer registered under section Section 206.4— 15 of the Act; (ii) A bank as defined in section 3(a)(6) of the Act; Registration Statements and Reports. (iii) An insurance company as defined in section 3(a)(19) of the Act: (iv) An investment company registered under (h) * * * Section 8 of the Investment Company Act of 1940; (3)(i) Any person who, after acquiring directly (v) An investment adviser registered under or indirectly the beneficial ownership of any equity Section 203 of the Investment Advisers Act of security of a member State bank, of a class which 1940; is registered pursuant to Section 12 of the Act (vi) An employee benefit plan, or pension fund (except nonvoting securities), is directly or indi- which is subject to the provisions of the Employee rectly the beneficial owner of more than 5 per cent Retirement Income Security Act of 1974 of such class shall, within 10 days after such ("ERISA") or an endowment fund; acquisition, send to the bank at its principal exec- (vii) A parent holding company, provided the utive office, by registered or certified mail, and aggregate amount held directly by the parent, and to each exchange where the security is traded, and directly and indirectly by its subsidiaries which file with the Board, a statement containing the are not persons specified in paragraphs information required by Form F-ll. Eight copies (h)(3)(ii)(A)(2)(i) through (vii) of this section, of the statement, including all exhibits, shall be does not exceed 1 per cent of the securities of filed with the Board. the subject class; (ii)(A) A person who would otherwise be obli- (viii) A group, provided that all the members gated under paragraph (h)(3)(i) of this section to are persons specified in paragraphs (h)(3)(ii) file a statement on Form F-ll, may in lieu thereof, (A)(2)(l) through (vii) of this section; and file with the Board, within 45 days after the end of the calendar year in which such person became Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

980 Federal Reserve Bulletin • December 1979 (3) Such person has promptly notified any other control of the bank, nor in connection with or as person (or group within the meaning of section a participant in any transaction having such pur- 13(d)(3) of the Act) on whose behalf it holds, on pose or effect, including any transaction subject a discretionary basis, securities exceeding 5 per to § 206.4(h)(5)(ii); and cent of the class, of any acquisition or transaction (iii) Is at that time the beneficial owner of more on behalf of such other person that might be than 5 per cent of a class of equity securities reportable by that person under section 13(d) of described in § 206.4(h)(3)(i). the Act. This paragraph only requires notice to (2) For the ten-day period immediately followthe account owner of information that the filing ing the date of the filing of a Form F-ll pursuant person reasonably should be expected to know and to this paragraph (h)(3)(ii)(C), such person shall that would advise the account owner of an obliga- not: (i) Vote or direct the voting of the securities tion he may have to file a statement pursuant to described in paragraph (h)(3)(ii)(C)(l)(i); nor, (ii) section 13(d) of the Act or an amendment thereto. Acquire an additional beneficial ownership interest (B) Any person relying on paragraphs in any equity securities of the bank nor of any (h)(3)(ii)(A) and (h)(4)(ii)(B) of this section shall, person controlling the bank. in addition to filing any statements required (D) Any person who has reported an acquisition thereunder, file a statement on Form F-l 1 A, within of securities in a statement on Form F-ll A purten days after the end of the first month in which suant to paragraph (ii)(A) or (ii)(B) and thereafter such person's direct or indirect beneficial owner- ceases to be a person specified in paragraph ship exceeds 10 per cent of a class of equity (ii)(A)(2) shall immediately become subject to securities specified in paragraph (h)(3)(i) of this § 206.4(h)(3)(i) and § 206.4(h)(4)(i) and shall section computed as of the last day of the month, file, within ten days thereafter, a statement on and thereafter within ten days after the end of any Form F-ll in the event such person is a beneficial month in which such person's beneficial ownership owner at that time of more than 5 per cent of the of securities of such class, computed as of the last class of equity securities. day of the month, increases or decreases by more (iii) Any person who, as of December 31, than 5 per cent of such class of equity securities. 1979, or as of the end of any calendar year Eight copies of such statement, including all ex- thereafter, is directly or indirectly the beneficial hibits, shall be filed with the Board and one each owner of more than 5 per cent of any equity sent, by registered or certified mail, to the bank security of a class specified in paragraph (h)(3)(i) at its principal executive office and to the principal of this section and who is not required to file a national securities exchange where the security is statement under paragraph (h)(3)(i) of this section traded. Once an amendment has been filed reflect- by virtue of the exemption provided by Section ing beneficial ownership of 5 per cent or less of 13(d)(6)(A) or (B) or the Act, or because such the class of securities, no additional filings are beneficial ownership was acquired prior to Derequired by this paragraph (ii)(B) unless the person cember 20, 1970, or because such person otherthereafter becomes the beneficial owner of more wise (except for the exemption provided by section than 10 per cent of the class and is required to 13(d)(6)(C) of the Act) is not required to file such file pursuant to this provision. statement, shall, within 45 days after the end of (C)(1) Notwithstanding paragraphs (h)(3)(ii)(A) the calendar year in which such person became and (ii)(B) and (h)(4)(ii) of this section, a person obligated to report under this paragraph, send to shall immediately become subject to (h)(3)(i) and the bank at its principal executive office, by regis- (h)(4)(i) of this section and shall promptly, but tered or certified mail, and file with the Board, not more than ten days later, file a statement on a statement containing the information required by Form F-ll if such person: Form F-ll A. Eight copies of the statement, in- (i) Has reported that the person is the beneficial cluding all exhibits, shall be filed with the Board. owner of more than 5 per cent of a class of equity (iv) For the purposes of sections 13(d) and securities in a statement on Form F-ll A pursuant 13(g), any person, in determining the amount of to paragraph (ii)(A) or (ii)(B), or is required to outstanding securities of a class of equity securireport such acquisition but has not yet filed the ties, may rely upon information set forth in the form; bank's most recent quarterly or annual report, and (ii) Determines that the person no longer has any current report subsequent thereto, filed with acquired or holds such securities in the ordinary the Board pursuant to this Act, unless he knows course of business or not with the purpose nor or has reason to believe that the information conwith the effect of changing or influencing the tained therein is inaccurate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 981 (v)(A) Whenever two or more persons are re- Eight copies of each such amendment shall be filed quired to file a statement containing the informa- with the Board. tion required by Form F-ll or Form F-11A with (ii) Form F-ll A—Notwithstanding paragraph respect to the same securities, only one statement (h)(4)(i) of this section, and provided that the need be filed, provided that: person or persons filing a statement pursuant to (1) Each person on whose behalf the statement § 206.4(h)(3)(ii) continues to meet the requireis filed is individually eligible to use the Form on ments set forth therein, any person who has filed which the information is filed; a short form statement on Form F-l 1A shall amend (2) Each person on whose behalf the statement such statement within 45 days after the end of each is filed is responsible for the timely filing of such calendar year to reflect, as of the end of the statement and any amendments thereto, and for calendar year any changes in the information rethe completeness and accuracy of the information ported in the previous filing on that Form, or if concerning such person contained therein; such there are no changes from the previous filing, a person is not responsible for the completeness or signed statement to that effect under cover of Form accuracy of the information concerning the other F-ll A. Eight copies of such amendment, includpersons making the filing, unless such person ing all exhibits, shall be filed with the Board and knows or has reason to believe that such informa- one each sent, by registered or certified mail, to tion is inaccurate; and the bank at its principal executive office and to (3) Such statement identifies all such persons, the principal national securities exchange where contains the required information with regard to the security is traded. Once an amendment has each such person, indicates that such statement is been filed reflecting beneficial ownership of 5 per filed on behalf of all such persons, and includes, cent or less of the class of securities, no additional as an exhibit, their agreement in writing that such filings are required unless the person thereafter a statement is filed on behalf of each of them. becomes the beneficial owner of more than 5 per (B) A group's filing obligations may be satis- cent of the class and is required to file pursuant fied either by a single joint filing or by each of to § 206.4(h)(3). the group's members making an individual filing. If the group's members elect to make their own Note.—For persons filing a short form statement filings, each such filing should identify all mem- pursuant to § 206.4(h)(3)(ii), see also § 206.4(h) bers of the group but the information provided (e)(ii)(B), (C), and (D). concerning the other persons making the filing (5)(i) For the purposes of section 13(d) and need only reflect information which the filing per- 13(g) of the Act, a beneficial owner of a security son knows or has reason to know. includes any person who, directly or indirectly, (4)(i) Form F-ll—If any material change occurs through any contract, arrangement, understanding, in the facts set forth in the statment required by relationship, or otherwise has or shares: § 206.4(h)(3)(i) including, but not limited to, any (A) voting power which includes the power to material increase or decrease in the percentage of vote, or to direct the voting of, such security; the class beneficially owned, the person or persons and/or who were required to file such statement shall (B) Investment power which includes the power promptly file or cause to be filed with the Board to dispose or to direct the disposition of such and send or cause to be sent to the bank at its security. principal executive office, by registered or certified (ii) Any person who, directly or indirectly, mail, and to each exchange on which the security creates or uses a trust, proxy, power of attorney, is traded an amendment disclosing such change. pooling arrangement or any other contract, ar- An acquisition or disposition of beneficial owner- rangement, or device with the purpose or effect ship of securities in an amount equal to 1 per cent of divesting such person of beneficial ownership or more of the class of securities shall be deemed of a security or preventing the vesting of such "material" for purposes of this rule; acquisitions beneficial ownership as part of a plan or scheme or dispositions of less than such amounts may be to evade the reporting requirements of Section material, depending upon the facts and circum- 13(d) or 13(g) of the Act shall be deemed for stances. The requirement that an amendment be purposes of such sections to be the beneficial filed with respect to an acquisition which materi- owner of such security. ally increases the percentage of the class benefi- (iii) All securities of the same class beneficially cially owned shall not apply if such acquisition owned by a person, regardless of the form which is exempted by Section 13(d)(6)(B) of the Act. such beneficial ownership takes, shall be aggre- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

982 Federal Reserve Bulletin • December 1979 gated in calculating the number of shares benefi- pledge agreement shall not be deemed to be the cially owned by such person. beneficial owner of such pledged securities until (iv) Notwithstanding the provisions of para- the pledgee has taken all formal steps necessary graphs (h)(5)(i) and (iii) of this section: which are required to declare a default and deter- (A)(1) A person shall be deemed to be the mines that the power to vote or to direct the vote beneficial owner of a security, subject to the pro- or to dispose or to direct the disposition of such visions of paragraph (h)(5)(h) of this section, if pledged securities will be exercised, provided that: that person has the right to acquire beneficial (1) The pledgee agreement is bona fide and was ownership of such security, as defined in not entered into with the purpose nor with the § 206.4(h)(3)(i), within 60 days, including but not effect of changing or influencing the control of the limited to any right to acquire: (i) through the bank, nor in connection with any transaction havexercise of any option, warrant, or right; (ii) ing such purpose or effect, including any transacthrough the conversion of a security; (iii) pursuant tion subject to § 206.4(h)(5)(ii); to the power to revoke a trust, discretionary ac- (2) The pledgee is a person specified in count, or similar arrangement; or (iv) pursuant to § 206.4(h)(3)(ii)(A)(2), including persons meeting the automatic termination of a trust, discretionary the conditions set forth in paragraph (h) thereof; account or similar arrangement; provided, how- and ever, any person who acquires a security or power (3) The pledgee agreement, prior to default, specified in paragraphs (h)(5)(iv)(A)(l)(i), (ii) or does not grant to the pledgee: (iii) above, with the purpose or effect of changing (i) The power to vote or to direct the vote of or influencing the control of the bank, or in con- the pledged securities; or nection with or as a participant in any transaction (ii) The power to dispose or direct the disposihaving such purpose or effect, immediately upon tion of the pledged securities, other than the grant such acquisition shall be deemed to be the benefi- of such power(s) pursuant to a pledge agreement cial owner of the securities which may be acquired under which credit is extended subject to Regulathrough the exercise or conversion of such security tion T (12 CFR 220) and in which the pledgee or power. Any securities not outstanding which is a broker or dealer registered under section 15 are subject to such options, warrants, rights or of the Act. conversion privileges shall be deemed to be out- (D) A person engaged in business as an understanding securities of the class owned by such writer of securities who acquires securities through person but shall not be deemed to be outstanding his participation in good faith in a firm commitfor the purpose of computing the percentage of ment underwriting registered under the Securities the class by any other person. Act of 1933 shall not be deemed to be the benefi- (2) Paragraph (A)(1) remains applicable for the cial owner of such securities until the expiration purpose of determining the obligation to file with of 40 days after the date of such acquisition. respect to the underlying security even though the (6) Any person may expressly declare in any option, warrant, right or convertible security is of statement filed that the filing of such statement a class of equity security, as defined in shall not be construed as an admission that such § 206.4(h)(3)(i) and may therefore give rise to a person is, for the purposes of section 13(d) or separate obligation to file. 13(g) of the Act, the beneficial owner of any (B) A member of a national securities exchange securities covered by the statement. shall not be deemed to be a beneficial owner of (7)(i) A person who becomes a beneficial owner securities held directly or indirectly by it on behalf of securities shall be deemed to have acquired such of another person solely because such member is securities for purposes of section 13(d)(1) of the the record holder of such securities and, pursuant Act, whether such acquisition was through purto the rules of such exchange may direct the vote chase or otherwise. However, executors or adof such securities, without instruction, on other ministrators of a decedent's estate generally will than contested matters or matters that may affect be presumed not to have acquired beneficial ownsubstantially the rights or privileges of the holders ership of the securities in the decedent's estate of the securities to be voted, but is otherwise until such time as such executors or administrators precluded by the rules of such exchange from are qualified under local law to perform their voting without instruction. duties. (C) A person who in the ordinary course of (ii)(A) When two or more persons agree to act business is a pledgee of securities under a written together for the purpose of acquiring, holding, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 983 voting or disposing of equity securities of a bank, Section 206.5—Proxy Statements and Other the group formed thereby shall be deemed to have Solicitations Under Section 14 of the Act acquired beneficial ownership, for purposes of (1) Tender offers. (1) No person directly or section 13(d) and 13(g) of the Act, as of the date indirectly by use of the mails or any means or of such agreement, of all equity securities of that instrumentality of interstate commerce or any fabank beneficially owned by any such persons. cility of a national securities exchange or other- (B) Notwithstanding the previous paragraph, a wise, shall make a tender offer for, or a request group shall be deemed not to have acquired any or invitation for tenders of any class of equity equity securities beneficially owned by the other security, which is registered pursuant to Section members of the group solely by virtue of their 12 of the Act of any member State bank, if, after concerted actions relating to the purchase of equity consummation thereof, such person would, disecurities directly from a bank in a transaction not rectly or indirectly, be the beneficial owner of involving a public offering; provided that: more than 5 per cent of such class, unless, at the (1) All the members of the group are persons time copies of the offer or request or invitation specified in § 206.4(h)(3)(ii)(A)(2); are first published or sent or given to security (2) The purchase is in the ordinary course of holders, such person has filed with the Board a each member's business and not with the purpose statement containing the information and exhibits nor with the effect of changing or influencing required by Form F-13. The definition of beneficial control of the bank, nor in connection with or as owner set forth in 206.4(h)(5) for the purposes a participant in any transaction having such purof Section 13(d)(1) of the Act shall apply also for pose or effect, including any transaction subject to § 206.4(h)(5)(ii); purposes of Section 14(d)(1) of the Act. (3) There is no agreement among or between any members of the group to act together with * * * ** respect to the bank or its securities except for the 3. Section 206.5(k) of Regulation F is purpose of facilitating the specific purpose in- amended by adding a new paragraph to read as volved; and follows: (4) The only actions among or between any members of the group with respect to the bank or its securities subsequent to the closing date of (5) If management intends to include in the the nonpublic offering are those which are necesproxy statement a statement in opposition to a sary to conclude ministerial matters directly related proposal received from a proponent, it shall, not to the completion of the offer or sale of the later than ten calendar days prior to the date the securities. preliminary copies of the proxy statement and form (8) The acquisition of securities of a bank by of proxy are filed pursuant to § 206.5(f) or, in a person who, prior to such acquisition, was a the event that the proposal must be revised in order beneficial owner of more than 5 per cent of the to be included, not later than five calendar days outstanding securities of the same class as those after receipt by the bank of the revised proposal, acquired shall be exempt from Section 13(d) of promptly forward to the proponent a copy of the the Act, provided that: statement in opposition to the proposal. In the (i) The acquisition is made pursuant to pre- event the proponent believes that the statement in emptive subscription rights in an offering made opposition contains materially false or misleading to all holders of securities of the class to which statements within the meaning of § 206.5(h) and the preemptive subscription rights pertain; the proponent wishes to bring this matter to the (ii) Such person does not acquire additional attention of the Board, the proponent should securities except through the exercise of his pro promptly provide the staff with a letter setting forth rata share of the preemptive subscription rights; the reasons for this view and at the same time and promptly provide management with a copy of such (iii) The acquisition is duly reported, if re- letter. quired, pursuant to Section 16(a) of the Act and the rules and regulations thereunder. Section 206.41—[Amended] * * * ** 2. Section 206.5(1) of Regulation F is amended 4. Section 206.41, Form F-l, Item 8, Directors as follows: and Officers, is amended as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

984 Federal Reserve Bulletin • December 1979 Item 8. Directors and officers. (a) The informa- the amount. Identify the persons making the detion required by Item 6(a)-(e) of § 206.51 shall termination and state their relationship, if any, be reported pursuant to this Item for both officers with the bank or any promoter. If the assets were and directors. The term "officer" is defined in acquired by the promoter within two years prior § 206.2(q). to their transfer to the bank, state the cost thereof to the promoter. (b) Identification of certain significant employ- 6. 206.41, Form F-l (Registration Statement), ees. Where the bank employs persons such as Item 11, Management Options to Purchase Sespecial consultants or attorneys who are not ofcurities, is amended as follows: ficers, but who make or are expected to make Item 11. Management Options to Purchase Sesignificant contributions to the business of the curities. The information required by Item 7(c) of bank, such persons should be identified and their Form F-5 at § 206.51 shall be reported pursuant background disclosed to the same extent as in the to this Item. case of officers. 7. Section 206.41, Form F-l (Registration (c) Business experience. When an officer or Statement), Item 12, Principal Holders of Securiperson named in response to paragraph (b), has ties, is retitled, Security Ownership of Certain been employed by the bank or a subsidiary of the Beneficial Ownership and Management, and is bank for less than five years, a brief explanation amended as follows: should be included as to the nature of the respon- Item 12. Security Ownership of Certain sibilities undertaken by the individual in prior Beneficial Owners and Management. The inforpositions in order to provide adequate disclosure mation required by Items 5(d), (e), and (g) of Form of his prior business experience. What is required F-5 at § 206.51, shall be reported pursuant to this is information relating to the level of his profes- Item. sional competence which may include, depending 8. Section 206.41, Form F-l (Registration upon the circumstances, such specific information Statement), Items 14-20 are redesignated Items as the size of the operation supervised. 13-19, respectively. 5. Section 206.41. Form F-l (Registration Statement), Item 10, Remuneration of Directors Section 206.42—[Amended] and Officers, and Item 13, Interest of Management 9. Section 206.42, Form F-2 (Annual Report), and Others in Certain Transactions, are combined Item 6, Directors of Bank, is amended as follows: into a new Item 10, Remuneration and Other Transactions With Management and Others, and Item 6. Directors of Bank. See General Instrucreads as follows: tion G. Set forth the same information as is required by Item 6(a), (d), and (e) of Form F-5 at § 206.51. Item 10. Remuneration and Other Transactions Note.—This information need not be included With Management and Others, (a) The informafor nominees for election as directors. tion required by Item 7(a), (b), (d), (e), (f), and 10. In section 206.42, Form F-2 (Annual Re- (g) of Form F-5 at § 206.51 shall be reported port), Item 7, Remuneration of Directors and pursuant to this Item. The information required Officers, is revised to read as follows: by Item 7(d), (e), and (f) of Form F-5 at § 206.51 shall be reported for the past three years. Item 7. Remuneration of Directors and Officers (b) If the bank was organized within the past and Related Matters. See General Instruction G. five years, furnish the following information: Set forth the same information as to remuneration (1) State the names of the promoters, the nature of officers and directors and their transactions with and amount of anything of value (including management and others as is required to be furmoney, property, contracts, options or rights of nished by Item 7(a) and (b) of Form F-5 at any kind) received or to be received by each § 206.51. promoter directly or indirectly from the bank, and 11. In section 206.42, Form F-2 (Annual Rethe nature and amount of any assets, services or port), Item 11, Officers of the Bank, is revised other consideration therefor received or to be reto read as follows: ceived by the bank. (2) As to any assets acquired or to be acquired Item 11. Officers of Bank. See General Instrucby the bank from a promoter, state the amount tion G. Set forth the same information as to at which acquired or to be acquired and the prin- officers of bank as is required to be furnished by ciple followed, or to be followed in determining Item 6 (a)-(e) of Form F-5 at § 206.51. When an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 985 officer has been employed by the bank or a sub- with a letter describing such disagreement and sidiary of the bank for less than five years, a brief requesting that the matter be disclosed, the bank explanation should be included as to the nature shall state the date of such resignation or declinaof the responsibilities undertaken by the individual tion to stand for re-election and summarize the in prior positions in order to provide adequate director's description of the disagreement. disclosure of his prior business experience. What (b) If the bank believes that the description is required is information relating to the level of provided by the director is incorrect or incomplete, his professional competence which may include, it may include a brief statement presenting its depending upon the circumstances, such specific views of the disagreement. information as the size of the operation supervised. (c) The bank shall file a copy of the director's 12. In section 206.42, Form F-2 (Annual Re- letter as an exhibit with all copies of this Form port), Item 13, Options Granted to Management F-3. to Purchase Securities, is revised to read as fol- 16. Section 206.43, Form F-3 (Current Relows: port), Present Item 5, Other Materially Important Events, is renumbered Item 6. Present Item 6, Item 13. Options Granted to Management to Financial Statements and Exhibits, is renumbered Purchase Securities. See General Instruction G. Item 7, and reads as follows: Set forth the same information as to options granted to management to purchase securities as Item 7. Financial Statements and Exhibits. is required to be furnished by Item 7(c) of Form F-5 at § 206.51. (b) Exhibits. Subject to the rules as to incor- 13. In section 206.42, Form F-2 (Annual Reporation by reference, the following documents port), Item 14, Interest of Management and Others shall be filed as exhibits to this report. in Certain Transactions, is revised to read as 1. Copies of any plan of acquisition or disposifollows: tion described in answer to Item 2, including any Item 14. Interest of Management and Others plan of reorganization, readjustment, exchange, in Certain Transactions. See General Instruction merger, consolidation or succession in connection G. Set forth the same information as to the interest therewith. of management and others in certain transactions 2. Letters from directors furnished pursuant to as is required to be furnished by Item 7(d), (e), Item 5. and (f) of Form F-5 at § 206.51. Section 206.44—[Amended] Section 206.43—[Amended] 17. Section 206.44, Form F-4 (Quarterly Re- 14. Section 206.43, Form F-3 (Current Re- port), Item 7, Submission of Matters to a Vote port), Item 4, Changes in Bank's Accountant, is of Security Holders, is amended by adding a new amended by adding a new paragraph (e) which paragraph (d) and Instruction 6 that reads as folreads as follows: lows: (e) State whether the decision to change ac- Item 7. Submission of Matters to a Vote for countants was recommended or approved by: Security Holders. (1) Any audit or similar committee of the Board of Directors, if the bank has such a committee; or * * * ** (2) The Board of Directors, if the bank has no (D) Describe the terms of any settlement besuch committee. tween the bank and any other participant (as de- 15. Section 206.43, Form F-3 (Current Re- fined in § 206.5(i)) terminating any solicitation port), is amended by adding a new Item 5, Resig- subject to § 206.5(i) including the cost or anticination of Bank's Directors, which reads as fol- pated cost to the bank. lows: Instructions * * * Item 5. Resignations of Bank's Directors, (a) 6. If the bank has furnished to its security If a director has resigned or declined to stand for holders proxy soliciting material containing the re-election to the Board of Directors since the date information called for by paragraph (d), the paraof the last annual meeting of shareholders because graph may be answered by reference to the inforof a disagreement with the bank on any matter mation contained in such material. relating to the bank's operations, policies or prac- 18. Section 206.47, Form F-ll, is revised as tices, and if the director has furnished the bank follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

986 Federal Reserve Bulletin • December 1979 Section 206.47—Form for Acquisition State- General Instructions ment Filed Pursuant to § 206.4(h)(3) and A. The item numbers and captions of the items Amendments Thereto Filed Pursuant to shall be included but the text of the items is to § 206.4(h)(4) of Regulation F. be omitted. The answers to the items shall be so prepared as to indicate clearly the coverage of the Board of Governors of the items without referring to the text of the items. Federal Reserve System Answer every item. If an item is inapplicable or Form F-ll the answer is in the negative, so state. Acquisition statement to be filed pursuant to § 206.4(h)(3) or § 206.4(h)(4) of Regulation F B. Information contained in exhibits to the (Amendment No. ). statement may be incorporated by reference in answer or partial answer to any item or sub-item (Name and Address of Bank) of the statement unless it would render such answer incomplete, unclear or confusing. Matter (Title of Class of Securities) incorporated by reference shall be clearly identi- (CUSIP Number) fied in the reference by page, paragraph, caption or otherwise. An express statement that the speci- (Name, Address and Telephone Number or Person fied matter is incorporated by reference shall be Authorized to Receive Notices and Communica- made at the particular place in the statement where tions) the information is required. C. If the statement is filed by a general or (Date of Event which Requires Filing of this limited partnership, syndicate, or other group, the Statement) information called for by Items 2-6, inclusive, If the filing person has previously filed a stateshall be given with respect to (i) each partner of ment on Form F-ll A, and is filing this form such general partnership; (ii) each partner who is because of § 206.4(h)(3)(ii)(C) or (D), check the demonstrated as a general partner who functions following box [ ]. as a general partner of such limited partnership; Note: Eight copies of this form, including all (iii) each member of such syndicate or group; and exhibits, should be filed with the Board. See (iv) each person controlling such partner or mem- § 206.4(h)(3)(i) for other parties to whom copies ber. If the statement is filed by a corporation or are to be sent. if a person referred to in (i), (ii), (iii), or (iv) of this instruction is a corporation, the information Special Instructions for Complying called for by the above mentioned items shall be With Form F-ll given with respect to (a) each executive officer Under Sections 13(d) and 23 of the Securities and director of such corporation; (b) each person Exchange Act of 1934 and the rules and regula- controlling such corporation; and (c) each executive officer and director of any corporation or other tions thereunder, the Board is authorized to solicit person ultimately in control of such corporation. the information required to be supplied by this Executive officer shall mean the president, secreform by certain security holders of certain banks. tary, treasurer, and any vice president in charge Disclosure of the information specified in this of a principal business function (such as sales, schedule is mandatory, except for Social Security administration or finance) and any other person or I.R.S. identification numbers, disclosure of who performs or has the power to perform similar which is voluntary. The information will be used policy making functions for the corporation. for the primary purpose of determining and disclosing the holdings of certain beneficial owners Item 1. Security and Bank. State the title of of certain equity securities. This statement will be the class of equity securities to which this statemade a matter of public record. Therefore, any ment relates and the name and address of the information given will be available for inspection principal office of the bank. by any member of the public. Failure to disclose the information requested by Item 2. Identity and Background. If the person this schedule, except for Social Security or I.R.S. filing this statement or any person enumerated in identification numbers, may result in civil or Instruction C of this statement is a corporation, criminal action against the persons involved for general partnership, limited partnership, syndicate violation of the Federal securities laws and rules or other group of persons, state its name, the state promulgated thereunder. or other place of its organization, its principal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 987 business, the address of its principal business, the of the bank. Describe any plans or proposals which address of its principal office and the information the reporting persons may have which relate to required by (d) and (e) of this item. If the person or would result in: filing this statement or any person enumerated in (a) The acquisition by any person of additional Instruction C is a natural person, provide the securities of the bank, or the disposition of securiinformation specified in (a) through (f) of this Item ties of the bank; with respect to such person(s). (b) An extraordinary corporate transaction, (a) Name: such as a merger, reorganization or liquidation, (b) Residence or business address: involving the bank or any of its subsidiaries; (c) Present principal occupation or employment (c) A sale or transfer of a material amount of and the name, principal business and address of assets of the bank or of any of its subsidiaries; any corporation or other organization in which (d) Any change in the present board of directors such employment is conducted; or management of the bank, including any plans (d) Whether or not, during the last five years, or proposals to change the number or term of such person has been convicted in a criminal directors or to fill any existing vacancies on the proceeding (excluding traffic violations or similar board; misdemeanors) and, if so, give the dates, nature (e) Any material change in the present capitaliof conviction, name and location of court, any zation or dividend policy of the bank; penalty imposed, or other disposition of the case. (g) Changes in the bank's charter, bylaws or (e) Whether or not, during the last five years, instruments corresponding thereto or other actions such person was a party to a civil proceeding of which may impede the acquisition of control of a judicial or administrative body of competent the bank by any person; jurisdiction and as a result of such proceeding was (h) Causing a class of securities of the bank or is subject to a judgment, decree or final order to be delisted from a national securities exchange enjoining future violation of, or prohibiting or or to cease to be authorized to be quoted in an mandating activities subject to, federal or state inter-dealer quotation system of a registered nasecurities laws or finding any violation with respect tional securities association; to such laws; and, if so, identify and describe such (i) A class of equity securities of the bank proceedings and summarize the terms of such becoming eligible for termination of registration judgment, decree or final order: and pursuant to Section 12(g)(4) of the Act; or (f) Citizenship. (j) Any action similar to any of those enumerated above. Item 3. Source and Amount of Funds or Other Consideration. State the source and the amount Item 5. Interest in Securities of the Bank, (a) of funds or other consideration used or to be used State the aggregate number and percentage of the in making the purchases, and if any part of the class of securities identified pursuant to Item 1 purchase price is or will be represented by funds (which may be based on the number of securities or other consideration borrowed or otherwise oboutstanding as contained in the most recently tained for the purpose of acquiring, holding, tradavailable filing with the Board by the bank unless ing or voting the securities, a description of the the filing person has reason to believe such infortransaction and the names of the parties thereto. mation is not current) beneficially owned (identi- Where material, such information should also be fying those shares which there is a right to acquire) provided with respect to prior acquisitions not by each person named in Item 2. This information previously reported pursuant to this regulation. If should also be furnished with respect to persons the source of all or any part of the funds is a loan who, together with any of the persons named in made in the ordinary course of business by a bank, Item 2, comprise a group within the meaning of as defined in Section 3(a)(6) of the Act, the name Section 13(d)(3) of the Act; of the bank shall not be made available to the (b) For each person named in response to parapublic if the person at the time of filing the graph (a), indicate the number of shares as to statement so requests in writing and files such which there is sole power to vote or to direct the request, naming such bank with the Board. If the vote, shared power to vote or to direct the vote, securities were acquired other than by purchase, sole power to dispose or to direct the disposition, describe the method of acquisition. or shared power to dispose or to direct the dispo- Item 4. Purpose of Transaction. State the pur- sition. Provide the applicable information required pose or purposes of the acquisition of securities by Item 2 with respect to each person with whom Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

988 Federal Reserve Bulletin • December 1979 the power to vote or to direct the vote or to dispose or direct the disposition is shared; acquisition statements as required by § 206.4 (c) Describe any transactions in the class of (h)(g)(v) and copies of all written agreements, securities reported on that were effected during the contracts, arrangements, understandings, plans, or past sixty days or since the most recent filing on proposals relating to: (1) The borrowing of funds Form F-ll, whichever is less, by the persons to finance the acquisition as disclosed in Item 3: named in response to paragraph (a). (2) the acquisition of bank control, liquidation, Instruction. The description of a transaction sale of assets, merger, or change in business or required by Item 5(c) shall include, but not neces- corporate structure, or any other matter as dissarily be limited to: (1) the identity of the person closed in Item 4; and (3) the transfer or voting covered by Item 5(c) who effected the transaction; of the securities, finder's fees, joint ventures, (2) the date of the transaction; (3) the amount of options, puts, calls, guarantees of loans, guaransecurities involved; (4) the price per share or unit; tees against loss or of profit, or the giving or and (5) where and how the transaction was ef- withholding of any proxy as disclosed in Item 6. fected. Signature. After reasonable inquiry and to the (d) If any other person is known to have the best of my knowledge and belief, I certify that right to receive or the power to direct the receipt the information set forth in this statement is true, of dividends from, or the proceeds from the sale complete and correct: of, such securities, a statement to that effect should be included in response to this item and, if such Date interest relates to more than five percent of the class, such person should be identified. Signature (e) If applicable, state the date on which the reporting person ceased to be the beneficial owner Name/Title of more than five per cent of the class of securities. The original statement shall be signed by each Instruction. For computations regarding securi- person on whose behalf the statement is filed or ties which represent a right to acquire an underly- his authorized representative. If the statement is ing security, see § 206.4(h)(5)(iv) and the note signed on behalf of a person by his authorized thereto. representative (other than an executive officer or general partner of the filing person), evidence of Item 6. Contracts, Arrangements, Understandthe representative's authority to sign on behalf of ings or Relationships With Respect to Securities such person shall be filed with the statement, of the Bank. Describe any contracts, arrangeprovided, however, that a power of attorney for ments, understandings or relationships (legal or this purpose which is already on file with the Board otherwise) among the persons named in Item 2 may be incorporated by reference. The name and and between such persons and any person with any title of each person who signs the statement respect to any securities of the bank, including shall be typed or printed beneath his signature. but not limited to transfer or voting of any of the Attention: Intentional misstatements or omissecurities, finder's fees, joint ventures, loan or sions of fact constitute Federal criminal violations option arrangements, puts or calls, guarantees or (See 18 U.S.C. 1001). profits, division of profits or losses, or the giving 19. Proposed Form F-ll A is added to section or withholding of proxies, and name the persons 206.48 and reads as follows: with whom such contracts, arrangements, under- Section 206.48—Short Form for statement filed standings or relationships have been entered into. pursuant to section 206.4(h)(3) and amendments Include such information for any of the securities thereto filed pursuant to § 206.4(h)(4) of Reguthat are pledged or otherwise subject to a continlation F (Form F-ll A). gency the occurrence of which would give another Board of Governors of the person voting power or investment power over Federal Reserve System such securities, except that disclosure of standard Washington, D.C. 20551. default and similar provisions contained in loan Form F-ll A agreements need not be included. Short Form Ownership Statement to be Filed Item 7. Material To Be Filed as Exhibits. The Pursuant to § 206.4(y)(3) or 206.4(y)(4) following shall be filed as exhibits: Copies of (Amendment No. ) written agreements relating to the filing of joint Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 989 (Name and Bank) Item 1(a). Name of Bank: (Title of Class of Securities) Item 1(b). Address of Bank's Principal Office: (CUSIP Number) Item 2(a). Name of Person Filing: Special Instructions for Complying Item 2(b). Address of Principal Business Office or, if none, Residence: With Form F-11A Under Sections 13(d), 13(g), and 23 of the Item 2(c). Citizenship: Securities Exchange Act of 1934 and the rules and regulations therunder, the Board is authorized to Item 2(d). Title of Class of Securities: solicit the information required to be supplied by this schedule by certain security holders of certain banks. Item 3. If this statement is filed pursuant to Disclosure of the information specified in this § 206.4(h)(3)(i) or 206.4(h)(4)(ii) check whether schedule is mandatory, except for Social Security the person filing is a: or I.R.S. identification numbers the disclosure of (a) [ ] Broker or Dealer registered under Secwhich is voluntary. The information will be used tion 15 of the Act. for the primary purpose of determining and dis- (b) [ ] Bank as defined in Section 3(a)(6) of closing the holdings of certain beneficial owners the Act. of certain equity securities. This statement will be (c) [ ] Insurance Company as defined in Secmade a matter of public record. Therefore, any tion 3(a)(19) of the Act. information given will be available for inspection (d) [ ] Investment Company registered under by any member of the public. Section 8 of the Investment Company Act. Failure to disclose the information requested by (e) [ ] Investment Adviser registered under this schedule, except for Social Security or I.R.S. Section 203 of the Investment Advisers Act of identification numbers, may result in civil or 1940. criminal action against the persons involved for (f) [ ] Employee Benefit Plan, Pension Fund violation of the Federal securities laws and rules which is subject to the provisions of the Employee promulgated thereunder. Retirement Income Security Act of 1974, or Endowment Fund. (g) [ ] Parent Holding Company, in accor- General Instructions dance with § 206.4(h)(3)(ii)(A)(2)(g) (Note: See A. Statements containing the information re- Item 7). quired by this Form shall be filed not later than (h) [ ] Group, in accordance with February 14 following the calendar year covered § 206.4(h)(3)(ii)(A)(2)(h). by the statement or within the time specified in § 335.4(h)(2)(ii)(B), if applicable. B. Information contained in a form which is Item 4. Ownership. If the per cent of the class required to be filed by the Securities and Exchange owned, as of December 31 of the year covered Commission's rules under Section 13(f) of the Act by the statement, or as of the last day of any month [15 U.S.C. 78m(f)] for the same calendar year described in § 206.4(h)(3)(B) if applicable, exas that covered by a statement on this Form may ceeds five per cent, provide the following inforbe incorporated by reference in response to any mation as of that date and identify those shares of the items of this Fcrm. If such information is for which there is a right to acquire. incorporated by reference in this Form, copies of (a) Amount beneficially owned. the relevant pages of such form shall be filed as (b) Per cent of class. an exhibit to this Form. (c) Number of shares as to which such person C. The item numbers and captions of the items has shall be included but the text of the items is to (i) Sole power to vote or to direct the vote. be omitted. The answers to the items shall be so (ii) Shared power to vote or to direct the vote. prepared as to indicate clearly the coverage of the (iii) Sole power to dispose or to direct the items without referring to the text of the items. disposition of. Answer every item. If an item is inapplicable or (iv) Shared power to dispose or to direct the the answer is in the negative, so state. disposition of. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

990 Federal Reserve Bulletin • December 1979 Instruction, for computations regarding securi- cation shall be included if the statement is filed ties which represent a right to acquire an underly- pursuant to § 206.4(h)(3)(ii). ing security see § 206.4(h)(5)(iv)(A). By signing below I certify that, to the best of my knowledge and belief, the securities referred Item 5. Ownership of Five Per Cent or Less to above were acquired in the ordinary course of of a Class. If this statement is being filed to report business and were not acquired for the purpose the fact that as of the date hereof the reporting of and do not have the effect of changing or person has ceased to be the beneficial owner of influencing the control of the bank and were not more than five per cent of the class of securities, acquired in connection with or as a participant in check the following [ ]. any transaction having such purposes or effect. Instructions: Dissolution of a group requires a response to this item. Signature After reasonable inquiry and to the best of my Item 6. Ownership of More Than Five Per Cent knowledge and belief, I certify that the information on Behalf of Another Person. If any other person set forth in this statement is true, complete and is known to have the right to receive or the power correct. to direct the receipt of dividends from, or the proceeds from the sale of, such securities, a state- Date ment to that effect should be included in response to this item and, if such interest relates to more Signature than five per cent of the class, such person should be identified. A listing of the shareholders of an Name/Title investment company registered under the Investment Company Act of 1940 or the beneficiaries The original statement shall be signed by each of employee benefit plan, pension fund or endow- person on whose behalf the statement is filed, or ment fund is not required. by his authorized representative. If the statement is signed on behalf of a person by his authorized Item 7. Identification and Classification of the representative (other than an executive officer or Subsidiary Which Acquired the Security Being general partner of the filing person), evidence of Reported on by the Parent Holding Company. If the representative's authority to sign on behalf of a parent holding company has filed this schedule, such person shall be filed with the statement. The pursuant to § 206.4(h)(3)(ii)(A)(2)(g), so indicate name and any title of each person who signs the under Item 3(g) and attach an exhibit stating the statement shall be typed or printed beneath his identity and the Item 3 classification of the relevant subsidiary. If a parent holding company has filed signature. this schedule pursuant to § 206.4(h)(2)(ii), attach Note.—Eight copies of this statement, including an exhibit stating the identification of the relevant all exhibits, should be filed with the Board. subsidiary. Section 206.51—[Amended] Item 8. Identification and Classification of Members of the Group. If a group has filed this 20. Section 206.51, Form F-5 (Proxy Stateschedule pursuant to § 206.4(h)(3)(ii)(A)(2)(y), so ment), Item 3, Persons Making the Solicitation, indicate under Item 3(h) and attach an exhibit is amended as follows: stating the identity and Item 3 classification of each Item 3. Persons Making the Solicitation. member of the group. If a group has filed this (а) ^ ^ schedule pursuant to § 206.4(h)(3)(iii), attach an * * * exhibit stating the identity of each member of the (б) If any such solicitation is terminated purgroup. suant to a settlement between the bank and any Item 9. Notice of Dissolution of Group. Notice other participant in such solicitation, describe the of dissolution of a group may be furnished as an terms of such settlement, including the cost or exhibit stating the date of the dissolution and that anticipated cost thereof to the bank. all further filings with respect to transactions in Instructions. 1. * * * the security reported on will be filed, if required, 2. The information required pursuant to paraby members of the group in their individual cagraph (b)(6) of this Item should be included in pacity. See Item 5. any amended or revised proxy statement or other Item 10. Certification. The following certifi- soliciting material relating to the same meeting or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 991 subject matter furnished to security holders by the tation is made, a change in control of the bank bank subsequent to the date of settlement. has occurred since the beginning of its last fiscal 21. Section 206.51, Form F-5 (Proxy State- year, state the name of the person(s) who acquired ment), Item 5. Voting Securities and Principal such control, the amount and the source of the Holders Thereof, is amended as follows: consideration used by such person(s), the basis of the control, the date and a description of the Item 5. Voting Securities and Principal Holders transaction(s) which resulted in the change of Thereof. control, the percentage of voting securities of the bank now beneficially owned directly or indirectly (b)* * * by the person(s) who acquired control, and the (c)5^4 ^ identity of the person(s) from whom control was (d) Security ownership of certain beneficial assumed. If the source of all or any part of the owners. Furnish the following information as of consideration used is a loan made in the ordinary the most recent practicable date in substantially course of business by a bank as defined by Section the tabular form indicated, with respect to any 3(a)(6) of the Act, the identity of such bank shall person (including any "group" as the term is used be omitted provided a request for confidentiality in Section 13(d)(3) of the Securities Exchange Act has been made pursuant to Section 13(d)(1)(B) of of 1934) who is known to the bank to be the the Act by the person(s) who acquired control. beneficial owner of more than five per cent of any In lieu thereof, the material shall indicate the class of the bank's securities. Show in Column identity of the bank so omitted and shall be filed (3) the total number of shares beneficially owned separately with the Board. If the source of all or and in Column (4) the per cent of class so owned. any part of the funds used to acquire control of Of the number of shares shown in Column (3), the bank was a loan made by a bank as defined indicate by footnote or otherwise the amount of by section 3(a)(8) of the Act indicate whether there shares with respect to which such listed beneficial exists any agreement, arrangement or understandowner has the right to acquire beneficial ownering pursuant to which the bank maintains or would ship, as specified in § 206.4 (h)(5)(iv)(A). maintain a correspondent deposit account at such (1) Title of Class lending bank. (2) Name and Address of Beneficial Owner (3) Amount of and Nature of Beneficial Owner- Instructions. 1. State the terms of any loans or ship pledges obtained by the new control group for the (4) Per cent of Class purpose of acquiring control, and the names of the lenders or pledgees. (3) Security ownership of management. Furnish 2. Any arrangements or understandings among the following information, as of the most recent members of both the former and new control practicable date in substantially the tabular form groups and their associates with respect to the indicated, as to each class of equity securities of election of directors and other matters should be the bank or any of its parents or subsidiaries, other described. than directors' qualifying shares, beneficially owned by all directors and nominees, naming (g) Anticipated change in control. Describe any them, and directors and officers of the bank as arrangements, known to the bank, including any a group, without naming them. Show in Column pledge by any person of securities of the bank or (2) the total number of shares beneficially owned any of its parents, the operation of which may and Column (3) the per cent of class so owned. at a subsequent date result in a change in control Of the number of shares shown in Column (2), of the bank. A description is not required of indicate, by footnote or otherwise the amount of ordinary default provisions contained in any shares with respect to which such persons have charter, trust indentures or other governing instruthe right to acquire beneficial ownership as speci- ments relating to securities of the bank. fied in § 206.4(h)(5)(iv)(A). Instructions to Item 5(d), (e), and (f). 1. The (1) Title of Class percentages are to be calculated on the basis of (2) Amount and Nature of Beneficial Ownerthe amount of outstanding securities, excluding ship securities held by or for the account of the bank (3) Per cent of Class or its subsidiaries, plus securities deemed out- (f) Recent change in control. If, to the knowl- standing pursuant to § 206.4(h)(5)(iv)(A). edge of the persons on whose behalf the solici- 2. For the purposes of this item, beneficial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

992 Federal Reserve Bulletin • December 1979 ownership shall be determined in accordance with 3. No information need be given respecting any § 206.4(h)(5). Include such additional subcolumns director whose term of office as a director will or any other appropriate explanation of Column not continue after the meeting to which the state- (3) necessary to reflect amounts as to which the ment relates. beneficial owner has (1) sole voting power, (2) 4. In connection with action to be taken conshared voting power, (3) sole investment power, cerning the election of directors, if fewer nominees and (4) shared investment power. are named than the number fixed by or pursuant 3. The bank shall be deemed to know the con- to the governing instruments, state the reasons for tents of any statement filed with the Board pursuant this procedure and that the proxies cannot be voted to section 13(d) of the Act. When applicable, a for a greater number of persons than the number bank may rely upon information set forth in such of nominees named. statements unless the bank knows or has reason to believe that such information is not complete (b) Family relationships. State the nature of any or accurate, or that a statement or amendment family relationships between any director, officer, should have been filed and was not. or person nominated or chosen by the bank to 4. For purposes of furnishing information pur- become a director or officer. suant to paragraph (d), the bank may indicate the source and date of such information. Instruction. The term "family relationships" 5. Where more than one beneficial owner is means any relationship by blood, marriage, or known to be listed for the same securities, appro- adoption, not more remote than first cousin. priate disclosure should be made to avoid confusion. (c) Business experience. (1) Give a brief ac- 22. Section 206.51, Form F-5 (Proxy State- count of the business experience during the past ment), Item 6, Nominees and Directors, is retitled five years of each director or person nominated Directors, and amended as follows: or chosen to become a director, including principal occupations and employment during that period, Item 6. Directors and Officers. If action is to and the name and principal business of any corbe taken with respect to election of directors, poration or other organization in which such furnish the following information in tabular form occupations and employment were carried on. (2) to the extent practicable, with respect to each Indicate any other directorship held by each direcperson nominated for election as a director and tor or person chosen to become a director in any each other person whose term of office as a director company with a class of securities registered purwill continue after the meeting. However, if the suant to Section 12 of the Act. solicitation is made on behalf of persons other than management, the information required need only be furnished as to nominees of the persons making (d) Involvement in certain legal proceedings. the solicitation. Describe any of the following events which occurred during the past five years and which are (a) Identification of directors. List all directors material to an evaluation of the ability or integrity of the bank and all persons nominated or chosen of any director or person chosen or nominated to to become directors. Indicate all positions and become a director of the bank: offices with the bank held by each person named. (1) A petition under the Bankruptcy Act or any State the age of the persons named, their terms state insolvency law was filed by or against such of office, and the periods during which each such person, or a receiver, fiscal agent or similar officer person has served. Briefly describe any arrange- was appointed by a court for the business or ment or understanding between each director and property of such person, or any partnership in any other person pursuant to which such director which he was a general partner at or within two was selected to serve in that capacity. years before the time of such filing, or any cor- Instructions. 1. Do not include any arrange- poration or business association of which he was ments or understandings with directors of the bank an executive officer at or within two years before acting solely in their capacities as such. the time of such filing; 2. No nominee or person chosen to become a (2) Such person was convicted in a criminal director or who has not consented to act as such proceeding or is a named subject of a pending should be named in response to this item. In this criminal proceeding (excluding traffic violations regard, see § 206.5(d). and other minor offenses); Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 993 (3) Such person was the subject of any order, 3. The bank is permitted to explain any mitijudgment, or decree, not subsequently reversed, gating circumstances associated with events resuspended or vacated, of any court of competent ported pursuant to this paragraph. jurisdiction permanently or temporarily enjoining 4. If the information called for by Item 6(e) him from, or otherwise limiting the following is being presented in a proxy or information stateactivities: ment, no information need be given respecting any (i) Acting as an investment adviser, under- director whose term in office as director will not writer, broker or dealer in securities, or as an continue after the meeting to which the statement affiliated person, director or employee of any in- relates. vestment company, bank, savings and loan asso- (e) Describe any of the following relationships ciation or insurance company, or engaging in or which exist: continuing any conduct or practice in connection (1) If the nominee or director has during the with such activity; past five years had a principal occupation or em- (ii) Engaging in any type of business practice; ployment with any of the bank's parents, subsidior aries or other affiliates; (iii) Engaging in any activity in connection with (2) If the nominee or director is related to an the purchase or sale of any security or in connec- officer of any of the bank' parents, subsidiaries tion with any violation of federal or state securities or other affiliates by blood, marriage or adoption laws. (except relationships more remote than first (4) Such person was the subject of any order, cousin); judgment or decree, not subsequently reversed, (3) If the nominee or director is, or has within suspended or vacated, of any federal or state the last two full fiscal years been, an officer, authority barring, suspending or otherwise limiting director or employee of, or owns, or has within for more than 60 days the right of such person the last two full fiscal years owned, directly or to engage in any activity described in subparagraph indirectly, in excess of 1 per cent equity interest (3), above, or to be associated with persons en- in any firm, corporation or other business or progaged in any such activity. fessional entity: (i) Which has made payments to the bank or (5) Such person was found by a court of comits subsidiaries for property or services during the petent jurisdiction in a civil action, or by a govbank's last full fiscal year in excess of 1 per cent ernment agency, to have violated any federal or state securities law, and the judgment in such civil of the bank's consolidated gross revenues for its action or finding by the government agency has last full fiscal year; not been subsequently reversed, suspended, or (ii) Which proposes to make payments to the vacated. bank or its subsidiaries for property or services during the current fiscal year in excess of 1 per Instructions. 1. For purposes of computing the cent of the bank's consolidated gross revenues for five year period referred to in this paragraph, the its full fiscal year; date of a reportable event shall be deemed the date (iii) To which the bank or its subsidiaries were on which the final order, judgment or decree was indebted at any time during the bank's fiscal year entered, or the date on which any rights of appeal in an aggregate amount in excess of 1 per cent from preliminary orders, judgments, or decrees of the bank's total consolidated assets at the end have lapsed. With respect to bankruptcy petititons, of such fiscal year or $5,000,000, whichever is the computation date shall be the date of filing less; for uncontested petitions or the date upon which (iv) To which the bank or its subsidiaries have approval of a contested petition became final. made payments for property or services during 2. If any event specified in this subparagraph such entity's last full fiscal year in excess of 1 (e) has occurred and information in regard thereto per cent of such entity's gross revenues for its last is omitted on the ground that it is not material, full fiscal year; the bank may furnish to the Board at the time of (v) To which the bank or its subsidiaries profiling, as supplemental information and not as part pose to make payments for property or services of the statement, materials to which the omission during such entity's current fiscal year in excess relates, a description of the event, and a statement of 1 per cent of such entity's consolidated gross of the reasons for the omission of information in revenues for its last full fiscal year; regard thereto. (vi) In order to determine whether payments Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

994 Federal Reserve Bulletin • December 1979 made or proposed to be made exceed 1 per cent (2)(a) If the bank has a nominating or similar of the consolidated gross revenues of any entity committee, state whether the committee will conother than the bank for such entity's last full fiscal sider nominees recommended by shareholders and, year, it is appropriate to rely on information pro- if so: vided by the nominee or director; (b) Describe the procedures to be followed by (vii) In calculating payments for property and shareholders in submitting such recommendations. services the following may be excluded: (g) Director Attendance. State the total number (A) Payments where the rates or charges inof meetings of the Board of Directors (including volved in the transaction are determined by comregularly scheduled and special meetings) which petitive bids, or the transaction involves the renwere held during the last full fiscal year. Name dering of services as a public utility at rates or each incumbent director who during the last full charges fixed in conformity with law or governfiscal year attended fewer than 75 per cent of the mental authority; aggregate of (1) the total number of meetings of (B) Payments which arise solely from the ownthe board of directors (held during the period for ership of securities of the bank and no extra or which he has been a director) and (2) the total special benefit not shared on a pro rata basis by number of meetings held by all committees of the all holders of the class of securities is received; board on which he served (during the periods that (viii) In calculating indebtedness for purposes he served). of subparagraph (iii) above, debt securities which have been publicly offered, admitted to trading on (h) Resignation of Directors. If a director has a national securities exchange, or quoted on the resigned or declined to stand for reelection to the automated quotation system of a registered securi- board of directors since the date of the last annual ties association may be excluded. meeting of shareholders because of a disagreement (4) That the nominee or director is a member with the bank on any matter relating to the bank's or employee of, or is associated with, a law firm operations, policies or practices, and if the director which the bank has retained in the last two full has furnished the bank with a letter describing such fiscal years or proposes to retain in the current disagreement and requesting that the matter be fiscal year. disclosed, the bank shall state the date of resigna- (5) That the nominee or director is a control tion or declination to stand for re-election and person of the bank (other than solely as a director summarize the director's description of the disof the bank). agreement. (6) In addition, the bank should disclose any (i) If the bank believes that the description other relationships it is aware of between the provided by the director is incorrect or incomplete, director or nominee and bank or its management it may include a brief statement presenting its which are substantially similar in nature and scope views of the disagreement. to those relationships listed above. 23. Section 206.51, Form F-5 (Proxy Statement), Item 7, Remuneration and Other Transac- Note.—In the Board's view, where significant tions With Management and Others, is amended business or personal relationships exist between as follows: the director or nominee and the bank or its management, including, but not limited to, those as Item 7. Remuneration and Other Transactions to which disclosure would be required pursuant With Management and Others. Furnish the inforto item 6(b), characterization of a director or mation called for by this item if action is to be nominee by any "label" connoting a lack of taken with respect to (i) the election of directors, relationship to the issuer and its management may (ii) any bonus, profit sharing or other remuneration be materially misleading. plan, contract or arrangement in which any direc- (f) Committees. (1) State whether or not the tor, nominee for election as a director, or officer bank has standing audit, nominating and compen- of the bank will participate, (iii) any pension or sation committees of the Board of Directors, or retirement plan in which any such person will committees performing similar functions. If the participate, or (iv) the granting or extension to any bank has such committees, however designated, such person of any options, warrants or rights to identify each committee member, state the number purchase any securities, other than warrants or of committee meetings held by each such commit- rights issued to security holders, as such, on a tee during the last fiscal year and describe briefly pro rata basis. However, if the solicitation is made the functions performed by such committees. on behalf of persons other than the management, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 995 Remuneration table (A) (B) (C) (D) Name of individual or Capacities in which Cash and cash-equivalent forms of remuneration Aggregate of contingent number of served forms of remuneration persons in group (CI) (C2) Salaries, fees, directors securities or property, fees, commissions, insurance benefits or and bonuses reimbursement, personal benefits the information required need be furnished only contract, agreement, plan or arrangement. The fair as to nominees for election as directors and as to market price of any such securities or property their associates. shall be determined as of the date during the fiscal year that either of the events in (a) or (b) of this (a) Current remuneration. Furnish the inforparagraph occurs, or if both events are contemmation required in the table below, in substantially plated, the date of the latter event. the tabular form as stqcified, concerning all remuneration of the following persons and group for (ii) Personal benefits. (A) The value of personal services in all capacities to the bank during the benefits which are not directly related to job perbank's last fiscal year. formance, which are furnished by the bank directly (1) Five officers or directors. Each of the five or through third parties to each of the specified most highly compensated officers or directors of persons and group, or benefits furnished by the the bank as to whom the total remuneration re- bank to other persons which indirectly benefit the quired to be disclosed in Columns CI and C2, specified persons. Such personal benefits shall inbelow, would exceed $50,000, naming each such clude the costs of any premiums or benefits paid person: and by the bank for any life or health insurance policy (2) All officers and directors. All officers and or health plan of which bank is not the sole directors of the bank as a group, stating the number beneficiary. (B) Such benefits shall be valued on or persons in the group without naming them. the basis of the aggregate actual cost to the bank. (3) Specified tabular format Information need not be furnished for any such benefit provided by the bank which does not dis- Instructions to Item 7(a). 1. Columns A and criminate in favor of officers or directors and which B. Persons subject to this item, (a) This item is available generally to all salaried employees. applies to any person who was an officer or director (C) If the bank cannot determine without unreaof the bank at any time during the fiscal year. sonable effort or expense the specific amount of However, information need not be given for any certain personal benefits, or the extent to which portion of the period during which such person benefits are personal rather than business, the was not an officer or director of the bank, provided amount of such personal benefits may be omitted a statement to that effect is made, (b) The term from the table provided that, after reasonable inofficer is defined in § 206.2(q). (c) For the purquiry, the bank has concluded that the aggregate poses of this item "bank" shall include the bank amounts of such personal benefits that cannot be and all its subsidiaries. specifically or precisely ascertained do not in any 2. Column C. (a) Column CI shall include all event exceed $10,000 as to each person or, in the cash remuneration distributed or accrued in the case of a group, $10,000 for each person in the form of salaries, fees, directors' fees, commissions group and has concluded that the information set and bonuses. forth in the table is not rendered materially mis- (b) Column C2 shall include the following: (i) leading by virtue of the omission of the value of Securities or property. Where any of the specified such personal benefits. persons or group (a) exercises any option, right or similar election in connection with any contract, 3. Column D. Column D shall include remunagreement, plan or arrangement, or (b) becomes eration of the specified persons and group in whole entitled without further contingencies to retain or in part for services rendered during the latest securities or property, state the spread between the fiscal year (including the forms of remuneration acquisition price, if any, and the fair market price described in paragraph (a) through (c) below) if of all securities or property acquired under any the distribution of such remuneration or the un- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

996 Federal Reserve Bulletin • December 1979 conditional vesting or measurement of benefits (c) Stock purchase plans; profit sharing and thereunder is subject to future events. thrift plans. Include the amount of any contribu- (a) Pensions or retirement plans; annuities; em- tion, payment or accrual for the account of each ployment contracts; deferred compensation plans. of the specified persons and groups under any stock (i) As to each of the specified persons and group, purchase, profit sharing, thrift, or similar plans the amount expensed for financial reporting pur- which has been expensed during the fiscal year poses by the bank for the year which represents by the bank for financial reporting purposes. the contribution, payment, or accrual for the ac- Amounts reflecting contributions under plans count of any such person or group under any qualified under the Internal Revenue Code may not existing pension or retirement plans, annuity con- be excluded. tracts, deferred compensation plans, or any other 4. Other permitted disclosure. The bank may similar arrangements. Such amounts should be provide additional disclosure through a footnote reflected as remuneration for the fiscal year under to the table, through additional columns, or otherall such plans or arrangements, including plans wise, describing the components of aggregate requalified under the Internal Revenue Code, unless muneration in such greater detail as is appropriate. in the case of a defined benefit or actuarial plan, 5. Definition of "Plan." The term "plan" as the amount of the contribution, payment, or ac- used in this item includes all plans, contracts, crual in respect to a specified person is not and authorizations, or arrangements whether or not set cannot readily be separately or individually calcu- forth in any formal documents. lated by the regular actuaries for the plan. 6. Transactions with third parties. Item 7(a), (ii) If amounts are excluded from the table among other things, includes transactions between pursuant to the previous provision, include a foot- the bank and a third party when the primary note to the table: (a) stating the fact; (b) disclosing purposes of the transaction is to furnish remunerathe percentage which the aggregate contributions tion to the persons specified in Item 7(a). Other to the plan bear to the total remuneration of plan transactions between the bank and third parties in participants covered by such plan; and (c) briefly which persons specified in Item 7(a) have an describing the remuneration covered by the plan. interest, or may realize a benefit, generally are addressed by other disclosure requirements con- (b) Incentive and compensation plans and arcerning the interest of management and others in rangements. certain transactions. Item 7(a) does not require (i) With respect to stock options, stock apprecidisclosure of remuneration paid to a partnership ation rights plans, phantom stock plans and any in which any officer or director was a partner; any other incentive or compensation plan or arrangesuch transactions should be disclosed pursuant to ment pursuant to which the measure of benefits these other disclosure requirements, and not as a is based on objective standards or on the value note to the remuneration table presented pursuant of securities of the bank or another person granted, to Item 7(a). awarded or entered into at any time in connection [End of Instructions to Item 7(a)] with services to the bank, include as remuneration of each of the specified persons and group any (b) Proposed remuneration. Briefly describe all attributable amount expensed by the bank for firemuneration payments proposed to be made in nancial reporting purposes for the fiscal year as the future pursuant to any existing plan or arremuneration for any such person or group. rangement to the persons and group specified in (ii) Where amounts are expensed and reported Item 7(a). As to defined benefit or actuarial plans, in the remuneration table, and amounts are credwith respect to which amounts are not included ited in a subsequent year in connection with the in the table pursuant to Instruction 3(a) to Item same plan or arrangement for any proper reason 7(a), include a separate table showing the estiincluding a decline in the market price of the mated annual benefits payable upon retirement to securities, such credit may be reflected as a reducpersons in specified remuneration and year-of-sertion of the remuneration reported in Column D. vice classification. If amounts credited are reflected in the table, include a footnote stating the amount of the credit Instruction. Information need not be furnished and briefly describe such treatment. with respect to any group life, health, hospi- (iii) The term "options" as used in this item talization, or medical reimbursement plans which includes all options, warrants, or rights, other than do not discriminate in favor of officers or directors those issued to security holders as such on a pro of the bank and which are available generally to rata basis. all salaried employees. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 997 (c) Options, warrants, or rights. Furnish the for any such person or $40,000 for such group, following information as to all options to purchase this item need not be answered with respect to any securities from the bank which were granted options held as of the specified date by such person to or exercised by the following persons since the or group. beginning of the bank's last fiscal year, and as 4. If the options relate to more than one class to all options held by such persons as of the latest of securities the information shall be given practicable date: (i) each director or officer named separately for each such class. in answer to paragraph (a)(1), naming each such person; and (ii) all directors and officers of the (d) Indebtedness of management. (1) State as bank as a group, without naming them; to each of the following persons, herein called (1) As to options granted during the period specified persons, who was indebted to the bank specified state: (i) the title and aggregate amount at any time since the beginning of its last fiscal of securities called for; (ii) the average option price year: (i) the largest aggregate amount of indebtedper share; and (iii) if the option price was less ness, including extensions of credit or overdrafts, than 100 per cent of the market value of the endorsements or guarantees outstanding (in dollar security on on the date of grant, state such fact, amounts and as a percentage of total equity capital and the market price on such date, shall be dis- accounts at the time) at any time during such closed. period: (ii) the amount thereof outstanding as of the latest practicable date; (iii) the nature of the (2) As to options exercised during the period indebtedness and of the transaction in which it was specified, state (i) the title and aggregate amount incurred; and (iv) the rate of interest paid or of securities purchased; (ii) the aggregate purchase charges thereon: price; and (iii) the aggregate market value of the securities purchased on the date of purchase. (A) each director or officer of the bank; (3) As to all unexercised options held as of the (B) each nominee for election as director; latest practicable date (state date), regardless of (C) each security holder who is known to bank when such options were granted, state (i) the title to own of record or beneficially more than five and aggregate amount of securities called for, and per cent of any class of the bank's voting securi- (ii) the average option price per share. ties; (D) each associate of any such director, officer, Instructions. 1. The term "options" as used in nominee or principal security holder. this paragraph (c) includes all options, warrants or rights, other than those issued to security hold- Instructions. 1. Include the name of each perers as such on a pro rata basis. Where the average son whose indebtedness is described and the nature option price per share is called for, the weighted of the relationship by reason of which the inforaverage price per share shall be given. mation is required to be given. 2. The extension, regranting or material 2. Generally, no information need be given amendment of options shall be deemed the grant- under this Item 7(d), unless any of the following ing of options within the meaning of this para- is present: graph. (a) such extensions of credit are not made on 3. (i) Where the total market value on the substantially the same terms, including interest granting dates of the securities called for by all rates, collateral and repayment terms, as those options granted during the period specified does prevailing at the time for comparable transactions not exceed $10,000 for any officer or director with other than the specified persons. named in answer to paragraph (a)(1), or $40,000 (b) such extensions of credit were not made in for all officers and directors as a group, this item the ordinary course of business. need not be answered with respect to options (c) such extensions of credit have involved or granted to such persons or group, (ii) Where the presently involve more than a normal risk of total market value on the dates of purchases of collectibility or other unfavorable features includall securities purchased through the exercise of ing the restructuring of an extension of credit or options during the period specified does not exceed a delinquency as to payment of interest or $10,000 for any such period or $40,000 for such principal. group, this item need not be answered with respect (d) the aggregate amount of extensions of credit to options exercised by such person or group, (iii) outstanding at any time from the beginning of the Where the total market value as of the latest last fiscal year to date to a person specified in (A), practicable date of the securities called for by all (B), and (C) of this paragraph (d)(1) together with options held at such time does not exceed $10,000 the persons' associates exceeded 10 per cent of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

998 Federal Reserve Bulletin • December 1979 the equity capital accounts of the bank at that time any of the specified persons in Item 7(d) had or or $10 million, whichever is less. is to have a direct or indirect material interest, Note.—For purposes of this Instruction 2(d) naming such person and stating his relationship only: (1) The information called for by paragraphs to the bank, the nature of his interest in the (d)(1) (iii) and (iv) of this Item 7 need not be transaction and, where practicable, the amount of furnished; (2) A principal security holder shall such interest. mean each security holder known to the bank to Instructions. 1. No information need be given own of record or beneficially more than ten (10) in response to this Item 7(e) as to any remuneration per cent of any class of the bank's voting securior other transaction reported in response to Item ties; and (3) The name of any associate need not 7(a), (b), (c) or (d), or as to any transaction with be furnished. respect to which information may be omitted pur- (2) If any extension of credit to the specified suant to Instruction 2 to Item 7(c) or Instruction persons as a group exceeded 20 per cent of the 2 or 3 to Item 7(d). Instruction 2 to Item 7(a) equity capital accounts of the bank at any time applies to this Item 7(e). since the beginning of the last full fiscal year to 2. No information need be given in answer to date, disclose the maximum aggregate amount of this Item 7(e) as to any transaction where: extensions of credit to the group during the period, (a) The rates or charges involved in the transacthe aggregate amount as a percentage of the equity tion are determined by competitive bids, or the capital accounts of the bank and include a state- transaction involves the rendering of services as ment, to the extent applicable, that the bank has a common or contract carrier, or public utility, had, and expects to have in the future, banking at rates or charges fixed in conformity with law transactions in the ordinary course of its business or governmental authority; with directors, officers, principal stockholders and (b) The transaction involves services as a bank their associates, on substantially the same terms, depository of funds, transfer agent, registrar, including interest rates, collateral and repayment trustee under an indenture, or similar services; terms on extensions of credit, as those prevailing (c) The amount involved in the transaction or at the same time for comparable transactions with series of similar transactions, including all periodic others. installments in the case of any lease or other 3. If any indebtedness required to be described agreement providing for periodic payments or inarose under Section 16(b) of the Act and has not stallments, does not exceed $40,000 for the term been discharged by payment, state the amount of of each transaction or series of transactions; or any profit realized, that such profit will inure to (d) The interest of the specified person arises the benefit of the bank or its subsidiaries and solely from the ownership of securities of the bank whether suit will be brought or other steps taken and the specified person receives no extra or speto recover such profit. If in the opinion of counsel cial benefit not shared on a pro rate basis by all a question reasonably exists as to the recoverability holders of securities of the class. of such profit, it will suffice to state all facts 3. It should be noted that this item calls for necessary to describe the transaction, including the disclosure of indirect, as well as direct, material prices and number of shares involved. interests in transactions. A person who has a position or relationship with a firm, corporation, 4. Notwithstanding the foregoing, any transacor other entity, which engages in a transaction with tion or series of transactions resulting in indebtedthe bank may have an indirect interest in such ness to the bank or its subsidiaries which may be transaction by reason of such position or relationconsidered material should be disclosed. ship. However, a person shall be deemed not to 5. If the information called for by Item 7(d) have a material indirect interest in a transaction is being presented in Form F-l, § 206.41, the within the meaning of this Item 7(e) where: information called for shall be presented for the (a) The interest arises only (i) from such perlast three full fiscal years. son's position as a director of another corporation (e) Transactions with management. Describe or organization (other than a partnership) which briefly any transaction since the beginning of the is a party to the transaction, or (ii) from the direct bank's last full fiscal year or any presently pro- or indirect ownership by such person and all other posed transactions, to which the bank or any of persons specified in subparagraphs (1) through (4) its subsidiaries was or is to be a party, in which above, in the aggregate, of less than a 10 per cent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 999 equity interest in another person (other than a be situations where, although the foregoing inpartnership) which is a party to the transaction, structions do not expressly authorize nondiscloor (iii) from both such position and ownership; sure, the interest of a specified person in the (b) The interest arises only from such person's particular transaction or series of transactions is position as a limited partner in a partnership in not a mutual interest. In that case, information which he and all other persons specified in (1) regarding such interest and transaction is not rethrough (4) above had an interest of less than 10 quired to be disclosed in response to this item. per cent; or The materiality of any interest or transaction is (c) The interest of such person arises solely from to be determined on the basis of the significance the holding of an equity interest (including a of the information to investors in light of all of limited partnership interest but excluding a general the circumstances of the particular case. The impartnership interest) or a creditor interest in an- portance of the interest to the person having the other person which is a party to the transactions interest, the relationship of the parties to the with the bank and the transaction is not material transaction to each other and the amount involved to such other person. in the transaction are among the factors to be 4. The amount of the interest of any specified considered in determining the significance of the person shall be computed without regard to the information to investors. amount of the profit or loss involved in the trans- (f) Transactions with pension or similar plans. action. Where it is not practicable to state the Describe briefly any transactions since the beginapproximate amount of the interest, the approxining of the bank's last full fiscal year or any mate amount involved in the transaction will be presently proposed transactions, to which any indicated. pension, retirement, savings or similar plan pro- 5. In describing any transaction involving the vided by the bank, or any of its parents or subsidpurchase or sale of assets by or to the bank, iaries was or is to be a party, in which any of otherwise than in the ordinary course of business, the specified persons in Item 7(d) had or is to have state the cost of the assets to the purchaser and, a direct or indirect material interest, naming such if acquired by the seller within two years prior person and stating his relationship to the bank, to the transaction, the cost thereof, to the seller. the nature of his interest in the transaction and, Indicate the principle followed in determining the where practicable, the amount of such interest. bank's purchase or sale price and the name of the person making this determination. Instructions. 1. Instructions 2, 3, 4, and 5 to 6. If the information called for by this Item 7(e) Item 7(e) shall apply to this Item 7(f). is being presented in Form F-l, § 206.41, the 2. Without limiting the general meaning of the period for which the information called for shall term "transaction" there shall be included in anbe presented for the previous three years. swer to this Item 7(f) any remuneration received 7. Include the name of each person whose inor any loans received or outstanding during the terest in any transaction is described and the nature period, or proposed to be received. of the relationship by reason of which such interest 3. No information need be given in answer to is required to be described. Where it is not practiparagraph (f) with respect to: cable to state the approximate amount of the inter- (a) Payments to the plan, or payments to beneest, the approximate amount involved in the transficiaries, pursuant to the terms of the plan; action shall be indicated. (b) Payment of remuneration for services not 8. Information shall be furnished in answer to in excess of 5 per cent of the aggregate remunerathis item with respect to transactions not excluded tion received by the specified person during the above which involve remuneration from the bank bank's last fiscal year from the bank; or directly or indirectly, to any of the specified per- (c) Any interest of the bank which arises solely sons for services in any capacity unless the interest from its general interest in the success of the plan. of such persons arises solely from the ownership individually and in the aggregate of less than 10 (g) Legal Proceedings. Any material proceedper cent of any class of equity securities of another ings to which any director, officer or affiliate of corporation furnishing the services to the bank. the bank, and persons holding in excess of five 9. The foregoing instructions specify certain per cent of the bank's outstanding stock, or any transactions and interests as to which information associate of any such director, officer or security may be omitted in answering this item. There may holder, is a party or has an interest materially Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1000 Federal Reserve Bulletin • December 1979 adverse to the bank or any of its subsidiaries which services are reflected in the audit fees comshould also be described. putation. 24. - Section 206.51, Form F-5 (Proxy State- 2. If the fee for any nonaudit service is less ment), Item 8, Relationship with Independent than 3 per cent of the audit fees, the percentage Public Accountants, is amended as follows: relationship need not be disclosed. 3. Each service should be specifically de- Item 8. Relationship With Independent Public scribed. Broad general categories such as "tax Accountants. matters" or "management advisory services" are not sufficiently specific. 4. Describe the circumstances and give details (e) If action is to be taken with respect to the of any services provided by the bank's independent selection or approval of auditors, or if it is proaccountant during the latest fiscal year that were posed that particular auditors shall be recomfurnished at rates or terms that were not custommended by any committee to select auditors for ary. whom votes are to be cast, name the auditors and 5. Describe any existing direct or indirect undescribe briefly any direct financial interest or any derstanding or agreement that places a limit on material indirect financial interest in the bank or current or future years' audit fees, including fee any of its parents or subsidiaries, or any connecarrangements that provide fixed limits on fees that tion during the past 3 years with the bank or any are not subject to reconsideration if unexpected of its parents or subsidiaries in the capacity of issues involving accounting or auditing are enpromoter, underwriter, voting trustee, director, countered. Disclosure of fee estimates is not reofficer, or employee. If the auditors to be selected quired. are other than those which were engaged as the principal auditors for the bank's most recently filed certified financial statements, briefly summarize the circumstances and conditions surrounding the proposed change of such auditors, and state AMENDMENTS TO REGULATION K whether such change was recommended or ap- The Board of Governors has amended section proved by: 211.5(b)(3) of its Regulation K, International (1) Any audit or similar committee of the Board Banking Operations, to simplify the procedures by of Directors, if the bank has such a committee; which subsidiaries of United States banking orgaor nizations may establish branches in foreign coun- (2) The Board of Directors, if the bank has no tries. such committee. Effective November 28, 1979, Regulation K is (f) For the fiscal year most recently completed, amended by revising § 211.5(b)(3) to read as describe each professional service provided by the follows: auditor and state the percentage relationship which the aggregate of the fees for all nonaudit services Section 211.5— bear to the audit fees, and, except as provided Investments in Other Organizations below, state the percentage relationship which the * * * ** fee for each nonaudit service bears to the audit fees. Indicate whether, before each professional (b) Investment limitations. service provided by the principal accountant was * * * ** rendered, it was approved by, and the possible (3) A subsidiary (other than a member bank effect on the independence of the accountant was or an Edge Corporation) may establish a foreign considered by (1) any audit or similar committee branch with prior approval of the Board. Unless of the board of directors and (2) for any service not approved by an audit or similar committee, otherwise advised by the Board: (i) a subsidiary the board of directors. (other than a member bank or an Edge Corporation) whose affiliates have offices (other than rep- Instructions. 1. For purposes of this subsection, resentative offices) in two or more foreign counall fees for services provided in connection with tries may establish initial branches in additional the audit function (e.g., reviews of quarterly re- foreign countries after 60 days' notice to the ports, filings with the Board, and annual reports) Board; (ii) a foreign bank subsidiary may, without may be computed as part of the audit fees. Indicate prior approval or prior notice, establish additional Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1001 branches in any country in which it operates one Subpart B—Reports on Indebtedness of Executive or more offices (other than representative offices); Officers and Principal Shareholders to Correand (iii) without prior approval or prior notice, spondent Banks any subsidiary (other than a foreign bank, member Section bank, or Edge Corporation) may establish addi- 215.20 Authority, purpose, and scope tional branches in any foreign country in which 215.21 Definitions any affiliate operates one or more offices (other 215.22 Reports by executive officers and principal than representative offices). Authority to establish shareholders branches through prior approval or prior notice 215.3 Report by member bank shall expire one year from the earliest date on which that authority could have been exercised, Subpart A—Loans by Member Banks to their unless extended by the Board. An investor shall Executive Officers, Directors, and Principal inform the Board within 30 days of the opening, Shareholders closing, or relocation of a branch and the address of a new or relocated foreign branch. Section 215.1—Authority, Purpose, and Scope * c :jc * (a) Authority. This Subpart is issued pursuant to sections ll(i), 22(g) and 22(h) of the Federal Reserve Act (12 U.S.C. §§ 248(i), 375a, 375b(7)) and 12 U.S.C. § 1817(k)(3). (b) Purpose and Scope. This Subpart governs AMENDMENTS TO REGULATION O any extension of credit by a member bank to an The Board of Governors has amended its Regula- executive officer, director, or principal shareholder tion O, Loans to Executive Officers, Directors, and of (1) the member bank, (2) a bank holding com- Principal Shareholders of Member Banks, to im- pany of which the member bank is a subsidiary, plement the reporting requirements of Titles VIII and (3) any other subsidiary of that bank holding and IX of the Financial Institutions Regulatory and company. It also applies to any extension of credit Interest Rate Control Act of 1978 ("FIRA"). by a member bank to (1) a company controlled Effective December 31, 1979, Regulation O is by such a person and (2) a political or campaign amended as follows: committee that benefits or is controlled by such a person. This Subpart also implements the re- Part 215—Loans to Executive Officers, porting requirements of 12 U.S.C. § 375a concerning extensions of credit by a member bank Directors, and Principal Shareholders of to its executive officers and of 12 U.S.C. Member Banks § 1817(k) concerning extensions of credit by a Subpart A—Loans by Member Banks to Their member bank to its executive officers and principal Executive Officers, Directors, and Principal shareholders. Shareholders Section 215.2—Definitions Section 215.1 Authority, purpose, and scope For the purpose of this Subpart, the following 215.2 Definitions definitions apply unless otherwise specified: 215.3 Extension of credit 215.4 General prohibitions 215.5 Additional restrictions on loans to execu- Section 215.9— tive officers of member banks Report on Credit to Executive Officers 215.6 Extensions of credit outstanding on March 10, 1979 215.7 Records of member banks Section 215.10—Annual Report on Aggregate 215.8 Reports by executive officers Credit to Executive Officers and Principal 215.9 Report on credit to executive officers Shareholders 215.10 Annual report on aggregate credit to executive officers and principal shareholders (a) Definitions. For the purposes of this section, 215.11 Civil penalties the following definitions apply: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1002 Federal Reserve Bulletin • December 1979 (1) "Aggregate amount of all extensions of the member bank had outstanding an extension of credit" means the sum of the highest amount of credit during the year; and credit outstanding during the calendar year (or, as (3) the aggregate amount of all extensions of an alternative, the highest end of the month credit credit from the member bank to its executive outstanding during the calendar year) from the officers and principal shareholders and their related member bank to: (i) each of its executive officers,7 interests. (ii) each of its principal shareholders, and (iii) each (c) Availability of Report. The Board or the of the related interests of these persons. Comptroller, as the case may be, and the member (2) "Principal shareholder of a member bank" means any person8 (other than an insured bank, bank shall make a copy of the report required by this section available to the public upon request. or a foreign bank as defined in 12 U.S.C. § 3101(7)) that, directly or indirectly, owns, con- Section 215.11—Civil Penalties trols, or has power to vote more than 10 per cent of any class of voting securities of the member As specified in section 29 of the Federal Reserve bank. The term includes a person that controls a Act (12 U.S.C. 504), any member bank, or any principal shareholder (e.g., a person that controls officer, director, employee, agent, or other person a bank holding company). Shares of a bank (in- participating in the conduct of the affairs of the cluding a foreign bank), bank holding company, bank, that violates any provision of this Subpart or other company owned or controlled by a mem- (other than section 215.10) is subject to a civil ber of an individual's immediate family are pre- penalty of not more than $ 1,000 per day for each sumed to be owned or controlled by the individual day during which the violation continues. for the purposes of determining principal shareholder status. Subpart B—Reports on Indebtedness of Execu- (3) "Related interest" means any company tive Officers and Principal Shareholders to controlled by a person and any political or cam- Correspondent Banks paign committee, the funds or services of which will benefit a person or that is controlled by a Section 215.20— person. For the purposes of this section and Sub- Authority, Purpose, and Scope part B, a related interest does not include a bank or a foreign bank (as defined in 12 U.S.C. (a) Authority. This Subpart is issued pursuant § 3101(7)). to section ll(i) of the Federal Reserve Act (12 U.S.C. § 248(i)) and 12 U.S.C. §§ 1817(k)(3) and (b) Contents of Report. On or before March 31 1972(2)(F)(vi). of each year, each member bank shall file with the appropriate Federal Reserve Bank in the case (b) Purpose and Scope. This Subpart impleof State member banks, or the Comptroller of the ments the reporting requirements of Title VIII of Currency in the case of national banks or banks the Financial Institutions Regulatory and Interest located in the District of Columbia, a report that Rate Control Act of 1978 ("FIRA") (P.L. 95shall include the following information with re- 630), 12 U.S.C. § 1972(2)(G). Title VIII prohibits spect to the preceding calendar year: (1) preferential lending by a bank to executive (1) a list by name of each person who was officers, directors, and principal shareholders of a principal shareholder of the member bank on another bank when there is a correspondent ac- December 31; count relationship between the banks, and (2) the (2) a list by name of each executive officer or opening of a correspondent account relationship principal shareholder of the member bank during between banks when there is a preferential extenthe year to whom, or to whose related interests, sion of credit by one of the banks to an executive officer, director, or principal shareholder of the other bank. 7. For purposes of this section and Subpart B, executive officers of a member bank do not include an executive officer Section 215.21—Definitions of a bank holding company of which the member bank is a subsidiary or of any other subsidiary of that bank holding For the purposes of this Subpart, the following company unless, of course, the executive officer is also an executive officer of the member bank. definitions apply unless otherwise specified: 8. The term "stockholder of record" appearing in 12 (a) "Bank" has the meaning given in 12 U.S.C. §§ 1817(k)( 1) and 1972(2)(G) is synonymous with the term person. U.S.C. § 1841(c), and includes a branch or agency Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department 1003 of a foreign bank, or a commercial lending com- the member bank's correspondent banks during the pany controlled by a foreign bank or by a company calendar year; that controls a foreign bank, where the branch or (2) the amount of indebtedness of the executive agency is maintained in a State of the United States officer or principal shareholder and of each of that or in the District of Columbia or the commercial person's related interests outstanding to each of lending company is organized under State law. the member bank's correspondent banks as of ten (b) "Company," "control of a company or business days before the report required by this bank," "executive officer,"9 "extension of section is filed;11 and credit," "immediate family," and "person" have (3) a description of the terms and conditions the meanings provided in Subpart A. (including the range of interest rates, the original (c) "Correspondent account" is an account that amount and date, maturity date, payment terms, is maintained by a bank with another bank for the security, if any, and any other unusual terms or deposit or placement of funds. A correspondent conditions) of each extension of credit included account does not include: in the indebtedness reported under paragraph (1) time deposits at prevailing market rates, and (b)(1) of this section. (2) an account maintained in the ordinary (c) Definitions. For the purposes of this section: course of business solely for the purpose of ef- (1) "Indebtedness" means an extension of fecting federal funds transactions at prevailing credit, but does not include: market rates or making Eurodollar placements at (1) commercial paper, bonds, and debentures prevailing market rates. issued in the ordinary course of business; and (d) "Correspondent bank" means a bank that (ii) consumer credit (as defined in 12 C.F.R. maintains one or more correspondent accounts for § 226.2(p)) in an aggregate amount of $5,000 or a member bank during a calendar year that in the less from each of the member bank's correaggregate exceed an average daily balance during spondent banks, provided the indebtedness is inthat year of $100,Q00 or 0.5 per cent of such curred under terms that are not more favorable than member bank's total deposits (as reported in its those offered to the general public. first consolidated report of condition during that (2) "Maximum amount of indebtedness" calendar year), whichever amount is smaller. means, at the option of the reporting person, either (e) "Principal shareholder" and "related inter- (i) the highest outstanding indebtedness during the est" have the meanings provided in section 215.10 calendar year for which the report is made, or (ii) of Subpart A. the highest end of the month indebtedness out- Section 215.22—Report by Executive Officers standing during the calendar year for which the and Principal Shareholders report is made. (a) Annual Report. If during any calendar year (d) Retention of Reports at Member Banks. The an executive officer or principal shareholder of a reports required by this section shall be retained member bank or a related interest of such a person at the member bank for a period of three years. has outstanding an extension of credit from a The Reserve Bank or the Comptroller, as the case correspondent bank of the member bank, the ex- may be, may require these reports to be retained ecutive officer or principal shareholder shall, on by the bank for an additional period of time. The or before January 31 of the following year, make reports filed under this section are not required by a written report to the board of directors of the this regulation to be made available to the public member bank.10 and shall not be filed with the Reserve Bank or the Comptroller unless specifically requested. (b) Contents of Report. The report required by this section shall include the following informa- (e) Member Bank's Responsibility. Each memtion: ber bank shall advise each of its executive officers (1) the maximum amount of indebtedness of the and each of its principal shareholders (to the extent executive officer or principal shareholder and of each of that person's related interests to each of that controls them, provided they identify their relationships with such other person. 11. If the amount of indebtedness outstanding to a correspondent bank ten days before the filing of the report is not 9. See note 7 above. available or cannot be readily ascertained, an estimate of the 10. Persons reporting under this section are not required amount of indebtedness may be filed with the report, provided to include information on extensions of credit that are fully that the report is supplemented within the next 30 days with described in a report by a person they control or a person the actual amount of indebtedness. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1004 Federal Reserve Bulletin • December 1979 known by the bank) of the reports required by this Bank as the Board may designate. With respect section and make available to each of these persons to notices filed and other actions taken under the a list of the names and addresses of the member Control Act, the term refers to the Federal Reserve bank's correspondent banks. Bank for the institution to be acquired, as determined by the preceding sentence in the case of Section 215.23—Report by Member Banks bank holding companies and by section 9 of the Federal Reserve Act in the case of State member (a) On or before March 31 of each year, each banks. In the case of a foreign banking organimember bank shall compile the reports filed under zation that is not a bank holding company but section 215.22 of this Subpart and shall forward which has one or more branches, agencies, or the compilation to the Comptroller of the Currency commercial lending companies located in any in the case of a national bank or a bank located State of the United States or the District of Coin the District of Columbia, or the appropriate lumbia, "Federal Reserve Bank" shall mean, Federal Reserve Bank in the case of a State memunless otherwise determined by the Board, the ber bank. This compilation shall contain only the Reserve Bank of the district in which its banking information required in paragraph (b) of this secassets are the largest as of the later of January tion. 1, 1980, or the date that it establishes its first (b) Each member bank shall include in the branch, agency or commercial lending company. report required under section 215.10 of Subpart A to be filed by March 31 of each year, the following information: (1) a list by name of each executive officer or AMENDMENTS TO RULES REGARDING principal shareholder that files a report with the member bank's board of directors under section DELEGATION OF AUTHORITY 215.22 of this Subpart; and The Board of Governors has amended its Rules (2) the aggregate amount (or sum) of the maxi- Regarding Delegation of Authority to delegate to mum amounts of indebtedness reported to the the Director of the Division of Banking Superviboard of directors of the member bank under sion and Regulation authority to make reports of section 215.22(b)(1) by the member bank's exec- examination of transfer agents, clearing agencies utive officers and principal shareholders and their and municipal securities dealers subject to the related interests. Board's supervisory jurisdiction available to the Securities and Exchange Commission pursuant to AMENDMENT TO REGULATION Y section 17(a)(3) of the Securities Exchange Act CORRECTION of 1934, as amended. Effective November 28, 1979, is amended by The amendment to section 225.1(c) of Regulaadding a new paragraph (25) to read as follows: tion Y effective October 24, 1979 (65 FEDERAL RESERVE BULLETIN 924 (1979)) is corrected as Section 265.2—Specific Functions Delegated to follows: Board Employees and to Federal Reserve Banks. Section 225.1— Authority, Scope and Definitions (c) The Director of the Division of Banking Supervision and Regulation (or, in the Director's absence, the Acting Director) is authorized: (c) Federal Reserve Bank. The term "Federal Reserve Bank" as used in this Part with respect to action by, on behalf of, or directed to be taken (25) Under the provisions of section 17(c)(3) by a bank holding company or other organization of the Securities Exchange Act of 1934, as shall mean either the Federal Reserve Bank of the amended, to make available upon request to the Federal Reserve district in which the operations Securities and Exchange Commission reports of of the bank holding company or other organization examination of transfer agents, clearing agencies are principally conducted, as measured by total and municipal securities dealers for which the deposits held or controlled by it in subsidiary Board is the appropriate regulatory agency for use banks on the date on which it became, or is to by the Commission in the exercise of its supervibecome, a bank holding company, or such Reserve sory responsibilities under that statute. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1005 BANK HOLDING COMPANY principals of Eustis Bank, and the two banks have AND BANK MERGER ORDERS been under the same control and operated as a ISSUED BY THE BOARD OF GOVERNORS unit ever since. Thus, there is little, if any, meaningful competition currently existing between Eustis Bank and Mount Dora Bank and no existing Orders Under Section 3 competition between the two banks would be of Bank Holding Company Act eliminated by the consummation of the proposal.4 Barnett Banks of Florida, Inc., In addition, Applicant is not currently represented Jacksonville, Florida in the market and its nearest banking subsidiary is located 23 miles from Mount Dora Bank's Order Approving Acquisition of Banks closest office and 26 miles from Eustis Bank's closest office in a separate banking market. From Barnett Banks of Florida, Inc., Jacksonville, the record it appears that no competition currently Florida, a bank holding company within the exists between Applicant's banking and nonbankmeaning of the Bank Holding Company Act, has ing subsidiaries on the one hand and Eustis Bank applied for the Board's approval under section and Mount Dora Bank on the other. Furthermore, 3(a)(3) of the Act (12 U.S.C. § 1842(a)(3)) to while Applicant could establish a de novo bank acquire 50 percent or more of the voting shares in the relevant market, it does not appear that the of First National Bank & Trust Company of Eustis, market is attractive for de novo entry. Moreover, Eustis, Florida ("Eustis Bank") and 50 percent several potential entrants into the relevant market or more of the voting shares of Bank of Mount would remain. Accordingly, consummation of the Dora, Mount Dora, Florida ("Mount Dora proposal would not have any adverse effect upon Bank"). competition. Therefore, the Board concludes that Notice of the applications, affording opportunity competitive considerations are consistent with apfor interested persons to submit comments and proval of the application. views, has been given in accordance with section The financial and managerial resources and fu- 3(b) of the Act. The time for filing comments has ture prospects of Applicant, its subsidiaries, and expired and the Board has considered the applica- Banks appear generally satisfactory. Banking factions and all comments received in light of the tors are, therefore, regarded as consistent with factors set forth in section 3(c) of the Act (12 approval of the application. U.S.C. 1842(c)). Affiliation with Applicant will enable banks to Applicant, the second largest banking organiincrease their lending capabilities, provide access zation in Florida, controls thirty-one banks with to international banking and greater retail banking aggregate deposits of $2.7 billion, representing services, and furnish marketing expertise and in- 8.83 percent of deposits in all commercial banks in the state.1 Acquisition of Eustis Bank and vestment management. Thus, convenience and needs factors lend some weight toward approval. Mount Dora Bank, with total deposits of $33.0 Accordingly, it is the Board's judgment that the million and $26.2 million respectively, would inproposed transactions would be in the public increase Applicant's share of state deposits by less terest and that the applications should be approved. than 1 percent, and would not result in a significant On the basis of the record, the applications are increase in the concentration of banking resources approved for the reasons summarized above. The in Florida. transactions shall not be made before the thirtieth Mount Dora Bank is the seventh largest of nine commercial banks in the relevant banking market,2 and controls 7.97 percent of deposits in commer- mately 18.0 percent, making them together the second largest banking organization in the market. cial banks in the market. Eustis Bank is the fifth 4. Approval of the application may have some procompetilargest bank in the market, and controls 10.04 tive effect in the relevant market by severing the affiliation percent of deposits in commercial banks in the between Mount Dora and Eustis Banks and Citizens National market.3 Mount Dora Bank was organized by Bank of Leesburg, Leesburg, Florida ("Citizens Bank"), the second largest bank in the market. In 1975, the principals of Mount Dora Bank and Eustis Bank controlled 27 percent of the shares of Citizens Bank. At present these principals control 7 percent of the shares and the chairman of both Mount Dora 1. All banking data are as of June 30, 1978. Bank and Eustis Bank is a director and member of the executive 2. The relevant banking market is the northern two-thirds committee of Citizens Bank. Both the ownership and director of Lake County, bounded on the south by the Florida turnpike. relations will be terminated upon consummation of the pro- 3. The combined market share of the two banks is approxi- posal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1006 Federal Reserve Bulletin • December 1979 calendar day following the effective date of this country, may be substantially to lessen competi- Order or later than three months after that date, tion or to tend to create a monopoly, or which unless such period is extended for good cause by in any other manner would be in restraint of trade, the Board, or by the Federal Reserve Bank of unless the Board finds that the anticompetitive Atlanta pursuant to delegated authority. effects of the transaction are clearly outweighed By order of the Secretary of the Board, acting in the public interest by the probable effect of the pursuant to delegated authority from the Board of transaction in meeting the convenience and needs Governors, effective November 27, 1979. of the community to be served. The Board has consistently expressed its con- (Signed) GRIFFITH L. GARWOOD, cern regarding acquisitions that impact signifi- [SEAL] Deputy Secretary of the Board. cantly on statewide structure and the concentration of banking resources within a state, and has indicated that there are limits as to what it regards Fidelity Union Bancorporation, as approvable under the standards of the Bank Newark, New Jersey Holding Company Act. The Board has been particularly concerned where proposals involved Order Denying Acquisition of Bank banking organizations of relatively large absolute Fidelity Union Bancorporation, Newark, New size.3 In New Jersey the four largest banking Jersey ("Applicant"), a bank holding company organizations hold 28.9 percent of the total deposwithin the meaning of the Bank Holding Company its in the state, and the ten largest banking organi- Act (the "Act"), has applied for the Board's zations hold approximately 48 percent of statewide approval under section 3(a)(3) of the Bank Holding deposits. The acquisition of Bank by Applicant Company Act (12 U.S.C. § 1842(a)(3)) to acquire would increase the concentration of deposits held all the outstanding shares of Garden State National by the four largest banking organizations in New Bank, Paramus, New Jersey ("Bank"). Jersey to over 31 percent. Furthermore, consum- Notice of the application, affording opportunity mation of the proposed acquisition would have the for interested persons to submit comments, has immediate effect of increasing both Applicant's been given in accordance with section 3 of the deposits and its number of banking offices by over Act. The time for filing comments has expired, 40 percent. It would also enable Applicant to move and the Board has considered the application and from its position as the fourth largest banking all comments received, including those of the organization to become the largest banking orga- United States Department of Justice, in light of nization in New Jersey. Finally, the Board is the factors set forth in section 3(c) of the Act (12 concerned that this proposal represents an unde- U.S.C. § 1842(c)). sirable trend of merger and acquisition activity Applicant, with five subsidiary banks, is the that, if permitted by the Board, would result in fourth largest banking organization in New Jer- further increases in concentration among New Jersey.1 It holds aggregate deposits of $1.7 billion, sey banking organizations.4 representing 6.2 percent of total commercial bank Under section 3(c) of the Act, the Board is not deposits in the state. Through its subsidiary banks, required to permit the development of undue con- Applicant conducts its banking business at a total centration among banking organizations in New of eighty-six banking offices located in ten local Jersey before it is empowered to intervene. Indeed, banking markets in northeastern New Jersey.2 the Clayton Act, which was incorporated into Bank, the twelfth largest banking organization in section 3(c) of the Act, provides authority for New Jersey, holds deposits of $709.6 million, arresting mergers at a time when the trend to a representing 2.6 percent of statewide deposits. lessening of competition is in its incipiency in Bank conducts its banking business through order to break the force of a trend toward undue thirty-seven banking offices located in six local markets in northern New Jersey. Section 3(c) of the Act provides, in part, that 3. E.g, Old Kent Financial Corporation, 65 FEDERAL REthe Board may not approve any proposed acquisi- SERVE BULLETIN 1010 (Order of November 2, 1979); First City Bancorporation of Texas, Inc. 65 FEDERAL RESERVE tion, the effect of which, in any section of the BULLETIN 862 (1979); and First International Bancshares, Inc., 60 FEDERAL RESERVE BULLETIN 290 (1974). 4. In commenting adversely on the proposal, the United 1. All banking data are as of December 31, 1978. States Department of Justice maintains that this is the latest 2. In addition, Applicant's subsidiary, Suburban Finance in a recent series of proposed acquisitions by the largest Company, operates 15 consumer finance offices in New Jersey. banking organizations in the state. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1007 concentration before it gathers momentum. See markets where Bank does not presently have of- Brown Shoe Co. v. United States, 370 U.S. 294, fices. In the Freehold, Asbury Park, and Newark 317-18. Based on the facts of record, the Board banking markets, where a large share of market views the proposed transaction as representing a deposits are concentrated in a few banking organitrend toward concentration of resources in New zations, Applicant is regarded as one of these Jersey, and the Board concludes that consumma- dominant organizations with market shares of 33, tion of this proposal, which would combine the 17, and 14.1 percent, respectively. The Board resources of two significant banking organizations views Bank as a likely entrant into these markets, and increase by 2.6 percent the amount of state- in view of its size and resources, as well as its wide deposits held by New Jersey's four largest significant presence in adjacent banking markets.8 banking organizations, would have substantially Furthermore, Applicant also operates in five less adverse effects on the concentration of banking concentrated markets where Bank does not comresources in New Jersey. pete; however, Bank may also be regarded as a In addition to the effects of the proposed acqui- likely entrant into those markets because of its sition on the concentration of banking resources overall size and resources and presence in adjacent in New Jersey, consummation of the proposed markets. Conversely, Bank has offices in three transaction would affect both existing and potential markets where Applicant is not currently reprecompetition within thirteen local banking mar- sented. In the Board's view, both Applicant and kets.5 In particular, both Applicant and Bank Bank have sufficient resources to enter into each compete in the Paterson, New Jersey banking other's markets in a less anticompetitive fashion market where the combined market share of Ap- than the present proposal. This conclusion is supplicant and Bank would be 4.4 percent. In addi- ported by the record of expansion of both organition, both Bank and Applicant compete in the zations. For example, over the past five years, metropolitan New York banking market, which Applicant established 15 branches de novo, and includes portions of several northern New Jersey in the same period Bank established three de novo counties. While neither organization has a signifi- branches and acquired four through mergers. cant presence in that market, which is somewhat Based on the record in this application, particularly distorted because of the large New York City the large number of local markets affected by this banks, Bank is the 20th largest of 126 banking proposal, the Board concludes that the proposed organizations competing in New York and, what acquisition would have substantially adverse efis more important, is the second largest New fects on potential competition. Accordingly, the Jersey banking organization in the market. Ac- Board has determined that the overall effects of cordingly, the Board concludes that the proposal the proposal on competition and concentration of would eliminate a slight amount of existing com- resources are so serious as to require denial of petition between the two organizations.6 the application, unless such anticompetitive effects are outweighed by considerations relating to the With regard to potential competition, consumconvenience and needs of the communities to be mation of the proposal would foreclose the possiserved. bility of competition in the future between Applicant and Bank in eleven banking markets.7 In The financial and managerial resources of Apparticular, Applicant competes in eight New Jersey plicant, its subsidiaries and Bank are considered to be satisfactory and their future prospects appear favorable. However, the Board notes that Appli- 5. The local banking markets most seriously affected by this cant would incur a substantial amount of indebtedproposal are more fully described in the Appendix to this Order. ness in connection with this proposed transaction, 6. The United States Department of Justice has indicated which could reduce its financial flexibility. Acits view that the proposal would have much more serious effects on existing competition. Its conclusion is based upon a more cordingly, banking factors lend no weight toward inclusive definition of the Newark banking market, and the approval of the application. fact that within that market the combined market share of With respect to the convenience and needs of Applicant and Bank would be 14.3 percent. The Justice Department also relies on the fact that in that area 20 offices the communities to be served, Applicant has asof Applicant are located within ten miles of an office of Bank. serted that the acquisition of Bank will have two 7. Applicant urges that the effects of the proposal on combeneficial results. First, Applicant intends to raise petition in local banking markets are mitigated by the fact that Applicant is primarily a "wholesale" banking organization, whereas Bank serves the "retail" banking customer. However, the Board does not generally view such distinction as meaningful, particularly where, as here, both organizations have 8. The Board notes that in general banks in New Jersey the ability and resources to serve retail customers. have authority to establish branches throughout the state. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1008 Federal Reserve Bulletin • December 1979 the interest rates paid to Bank's customers on Boro, Manalapan, Marlboro, and part of Howell, certain time deposit accounts, as well as to lower all located in Monmouth County, New Jersey. the interest rates charged on certain loans. While the Board favors such specific public benefits that have a direct impact on consumers, it notes that Dissenting Statement of Chairman Volcker and there appears to be no reason that an institution Governors Schultz and Coldwell of Bank's size could not make the proposed rate adjustments absent the proposed acquisition. Ap- We do not find that the application of Fidelity plicant also states that it will assist Bank in in- Union Bancorporation to acquire Garden State creasing its commercial lending services through National Bank will have such serious adverse expertise to be provided by personnel of Appli- effects on competition as to warrant denial. Accant, as well as the availability of a greater lending cordingly, we would approve the application for capacity through the holding company system. It the following reasons. is the Board's view that the benefits to the public First, as the Board emphasized in its Board are not sufficient to outweigh the substantially Order, we too are concerned about the effects of adverse effects on competition and concentration certain proposed acquisitions on the banking of banking resources in New Jersey that would structure and concentration of banking resources result from consummation of the proposed trans- within a state. However, based upon our review action. Accordingly, it is the Board's judgment of the facts of this case, unlike the majority of that the proposed transaction would not be in the the Board, we do not find that the banking structure public interest and that the application should be in the State of New Jersey is now overly concendenied. Based on the foregoing and other facts trated. Moreover, we do not believe that the proof record, the application is hereby denied. posed acquisition, which will increase the deposits By Order of the Board of Governors of the held by the four largest organizations in New Federal Reserve System, effective November 16, Jersey by only 2.6 percent, evidences a trend in 1979. New Jersey of anticompetitive acquisitions and mergers that would result in any dramatic increase Voting for this action: Governors Wallich, Partee, in the concentration of banking resources in New Teeters, and Rice. Voting against this action: Chairman Jersey. Volcker and Governors Schultz and Coldwell. Second, while the proposed combination will (Signed) GRIFFITH L. GARWOOD, eliminate some existing and potential competition, [SEAL] Deputy Secretary of the Board. we do not view the effects of this proposal on such competition in any of local market involved to be so significant as to warrant denial. Neither Appendix Applicant nor Bank may be regarded as dominant 1. The Metropolitan New York banking market in any of the markets in which they compete. is approximately by the five boroughs of New York Indeed, neither is the largest organization in any City, and Nassau, Westchester, Putnam, and local market in which it competes, and in ten of Western Suffolk Counties in New York, as well the thirteen markets involved, Applicant and Bank as the northern two-thirds of Bergen County and hold well under 10 percent of the total market western Hudson Counties in New Jersey, and deposits. Moreover, in the principal market of southwestern Fairfield County in Connecticut. Garden State Bank it holds less than 1 percent 2. The Greater Newark banking market is ap- of total market deposits. We would agree with the proximated by Essex and Union Counties and majority if a bank this size were located in a portions of Bergen, Hudson, and Morris Counties market where it held a sizeable share of market in New Jersey. deposits. 3. The Paterson banking market is approxi- Finally, the majority of the Board finds signifimated by Passaic County, sixteen municipalities cant anticompetitive effects resulting from the in western Bergen County and five municipalities combination of two such sizeable banking organiin northeastern Morris County in New Jersey. zations. However, we believe that the combination 4. The Freehold banking market is approxi- may, in fact, have procompetitive effects in that mated by the municipalities of Atlantic, English- it would result in a New Jersey-based banking town, Farmingdale, Freehold Township, Freehold organization that would be of sufficient size to be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1009 a more effective competitor for business in the ling 48.2 percent of commercial bank deposits in New York banking market. that market.2 No significant competition exists Based on the foregoing, we believe that the between Applicant and Bank inasmuch as none application should be approved. of Applicant's subsidiary banks operates in the relevant banking market, and there is no signifi- November 16, 1979 cant overlap in the service areas of Bank and any of Applicant's subsidiary banks. Notwithstanding the absence of any signifi- National City Corporation, cantly adverse effects of the proposal upon existing Cleveland, Ohio competition, the Board is concerned, particularly in light of Bank's market share, with the effects Order Approving Acquisition of Bank the proposal might have upon probable future National City Corporation, Cleveland, Ohio, competition within the Marion banking market. has applied for the Board's approval under section Applicant could enter the market de novo either 3(a)(3) of the Bank Holding Company Act of 1956 by establishing a bank or through branching by (12 U.S.C. § 1842(a)(3)) to acquire 100 percent Applicant's subsidiary, Galion Bank. Furtherof the voting shares of the successor by merger more, there are two smaller independent banks to The National City Bank of Marion ("Bank"), located in the market that might serve as foothold Marion, Ohio. The bank into which Bank is to entry points for Applicant. be merged has no significance except as a means These considerations warrant some concern, but to facilitate the acquisition of the voting shares this concern is mitigated by several facts. First, of Bank. Accordingly, the proposed acquisition of eight of the other nine largest Ohio bank holding shares of the successor organization is treated in companies would remain as possible entrants into this Order as an acquisition of Bank's shares. the market. Moreover, based upon demographic Notice of the application, affording opportunity and banking data, the market does not appear to for interested persons to submit comments and be particularly attractive for de novo entry by views, has been given in accordance with section Applicant.3 In addition, while Bank could branch 3(b) of the Act. The time for filing comments and into the banking market in which Galion Bank is views has expired, and the Board has considered located, that market likewise appears only marthe application and all comments received, in- ginally attractive for de novo entry. In light of cluding those of the United States Department of the above and other facts of record, the Board on Justice, in light of the factors set forth in section balance concludes that the effects of consumma- 3(c) of the Act (12 U.S.C. § 1842(c)). tion of this proposal on competition would be only slightly adverse. Applicant, the third largest banking organization in Ohio, controls ten banks with aggregate deposits The financial and managerial resources and fuof approximately $2.4 billion, representing 6.4 ture prospects of Applicant, its subsidiary banks, percent of the total commercial bank deposits in and Bank are considered generally satisfactory. Ohio.1 Acquisition of Bank ($102.9 million in Thus, banking factors are consistent with approval deposits) would increase Applicant's share of de- of the application. Applicant plans to introduce posits statewide by only 0.27 percent and would some new services to customers of Bank, includnot result in a significant increase in the concen- ing trust and international services. In addition, tration of banking resources in Ohio. Applicant plans to increase Bank's consumer in- Bank is the largest of four banking organizations stallment and residential mortgage lending and operating in the Marion banking market, control - improve the level of services to customers of Bank. These considerations relating to the convenience and needs of the communities to be 1. Unless otherwise indicated, banking data are as of September 30, 1978, and reflect bank holding company formations and acquisitions approved as of August 31, 1979. Applications 2. The Marion banking market is approximated by Marion by Applicant to acquire The First National Bank ("Galion County and the townships of Jackson and Claibourne, Ohio. Bank"), Galion, Ohio, and The Fairfield National Bank, Lan- Banking data for this banking market are as of June 30, 1978. caster, Ohio, were approved on June 8 and August 23, 1979, 3. In commenting on this application, the Department of respectively. On September 28, 1979, the Board approved the Justice concluded that the effect of this acquisition on compeacquisition of The Citizens National Bank, Bryan, Ohio ($75.7 tition would be adverse, but it recognized that the likelihood million in deposits), by Applicant. of de novo entry is limited. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1010 Federal Reserve Bulletin • December 1979 served lend weight toward approval of the appli- market. Under the circumstances we consider fucation, and are sufficient to outweigh any anti- ture entry by Applicant into the Marion banking competitive effects associated with the proposal. market by less anticompetitive means to be more Based upon the foregoing and other considerations probable than does the majority. reflected in the record, it is the Board's judgment In our view the competitive effects of this acthat the proposed acquisition is in the public inter- quisition are so seriously adverse as to warrant est and the application should be approved. denial, and we perceive no significant offsetting On the basis of the record, the application is benefits to alter that conclusion. approved for the reasons summarized above. The In light of this, we would deny this application. transaction shall not be made before the thirtieth November 9, 1979 calendar day following the effective date of this Order or later than three months after the effective date of this Order, unless such period is extended for good cause by the Board or by the Federal Old Kent Financial Corporation, Reserve Bank of Cleveland pursuant to delegated Grand Rapids, Michigan authority. Order Denying By order of the Board of Governors, effective Acquisition of Bank Holding Company November 9, 1979. Old Kent Financial Corporation, Grand Rapids, Voting for this action: Chairman Volcker and Gover- Michigan ("Applicant"), a bank holding company nors Schultz, Coldwell, and Partee. Voting against this action: Governors Wallich, Teeters, and Rice. within the meaning of the Bank Holding Company Act (the "Act"), has applied for the Board's (Signed) GRIFFITH L. GARWOOD, approval under section 3(a)(5) of the Bank Holding [SEAL] Deputy Secretary of the Board. Company Act (12 U.S.C. § 1842(a)(5)) to merge Peoples Banking Corporation, Bay City, Michigan Dissenting Statement of Governors Wallich, ("Peoples"), into Applicant. Teeters, and Rice Notice of the application, affording opportunity for interested persons to submit comments, has We would deny the application of National City been given in accordance with section 3 of the Corporation to acquire National City Bank of Act. The time for filing comments has expired, Marion for reasons similar to those set forth in and the Board has considered the applications and Dissenting Statements to past actions by the Board all comments received, including those of Mr. approving applications by major bank holding Harrison Plum, in light of the factors set forth in companies seeking to acquire a banking organi- section 3(c) of the Act (12 U.S.C. § 1842(c)).1 zation with a significant presence in one or more Applicant, the sixth largest banking organimarkets where the applicant was not present.1 We zation in Michigan,2 controls 10 banks with agbelieve that consummation of this proposal would gregate deposits of approximately $1.35 billion, have an adverse effect upon potential competition representing 3.5 percent of total commercial bank which is not outweighed by convenience and needs deposits in the state. Peoples, the 12th largest considerations. banking organization in Michigan, controls 6 In this case the third largest banking organi- banks with aggregate deposits of approximately zation in Ohio is seeking to acquire the largest $613 million, representing 1.6 percent of statewide banking organization located in the relevant bank- commercial bank deposits. Upon consummation of ing market. Not only is the bank to be acquired the proposal, Applicant's share of commercial sizable, but its market share is more than twice bank deposits in Michigan would increase to 5.1 that of any other competitor in the market. In percent and it would become the fifth largest addition, Applicant is one of the most rapidly banking organization in the state. expanding of Ohio's largest multibank holding Section 3(c) of the Act provides, in part, that companies. In 1979 alone the Board has acted on the Board may not approve any proposed acquisifive applications by National City Corporation to tion, the effect of which, in any section of the acquire banks, and in all but one of those cases the bank to be acquired was the largest in its 1. Mr. Plum, a shareholder of both Applicant and Peoples, 1. See National Detroit Corporation, 65 FEDERAL RESERVE urged denial of the proposal on competitive grounds. BULLETIN 928 (October 25, 1979), and Orders there cited. 2. All banking data are as of June 30, 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1011 country, may be substantially to lessen competi- insufficient to warrant denial.5 The latter cases tion or to tend to create a monopoly, or which have generally involved the acquisition of organiin any other manner would be in restraint of trade, zations that were smaller than Peoples in terms unless the Board finds that the anticompetitive of deposit size and statewide deposit share. In effects of the transaction are clearly outweighed view of the recent, rapid increase in statewide in the public interest by the probable eff ect of the concentration in Michigan, the Board concludes transaction in meeting the convenience and needs that consummation of this proposal, which would of the community to be served. increase by 1.3 percent the amount of statewide As of December 31, 1976, the proportion of deposits held by Michigan's five largest bank statewide deposits held by Michigan's five largest holding companies, would have substantially adbanking organizations stood at 45.0 percent, hav- verse effects on the concentration of banking reing reached that point after a five-year decline from sources in Michigan. Consummation would also December 31, 1971, when that proportion was eliminate a large, viable multibank holding com- 50.2 percent. Consummation of this proposal, and pany from its status as a potential competitor with another recently approved by the Board, would other banking organizations in Michigan. result in an increase in this ratio to 49.3 percent.3 The competitive effects associated with this The Board believes that such a rapid increase in proposal, in addition to the general effect upon the concentration of statewide banking resources the structure of banking in Michigan, must be is cause for concern. The Board is not required considered within a number of separate banking to await the development of undue concentration markets. None of Applicant's subsidiary banks is among bank holding companies in Michigan be- located in the same banking market as any of fore it intervenes. Indeed, the underlying purpose Peoples' subsidiary banks. Thus, consummation of the Clayton Act, as incorporated in the Bank of the proposal would have no adverse effects on Holding Company Act, is to brake the force of existing competition. With regard to potential a trend toward undue concentration before it competition, however, the Board notes that both gathers momentum. See Brown Shoe Co. v. Applicant and Peoples are among the dominant United States, 370 U.S. 294, 317-18). banking organizations in the majority of the bank- The Board has often expressed its concern re- ing markets they serve. Indeed, Peoples is the garding the concentration of banking resources second or third largest banking organization in all within a state, and this concern has at times of the six markets in which it is represented, while resulted in denial of applications presented to the Applicant holds in excess of 25 percent of market Board.4 In other instances, the Board has con- deposits in four of its seven markets. The followcluded that although some increase in statewide ing tables provide the relevant market data: concentration was involved, such an increase was The size of both Applicant and Peoples demon- Peoples' Market Data Market Four bank Number of bank concentration Market banking Rank Percent deposits ratio organizations ($000,000) (Percent) Bay City-Saginaw 12 2 342.5 24.46 79.5 Mount Pleasant 7 3 39.7 20.2 83.1 Standish-West Branch 4 2 36.7 29.1 100.0 Oscoda 2 2 20.2 37.9 100.0 Tuscola 12 3 21.9 13.7 54.5 Flint 11 3 145.3 8.0 90.4 Bancorporation held a larger share of statewide deposits. The 3. Between year-end 1976 and 1978 this ratio increased to Board believes the opposite conclusion would be more accu- 47.7 percent. rate, however, because Michigan's statewide deposit concen- 4. E.g., First Int'l Bancshares, 60 FEDERAL RESERVE BUL- tration is considerably higher than that of Texas (Michigan's LETIN 290 (1974). five largest banking organizations hold 47.7 percent of state- 5. E.g, First City Bancorporation of Texas, Inc, 65 FED- wide deposits compared to 34.0 percent in Texas) and Texas ERAL RESERVE BULLETIN, 862 (Order of September 10, 1979); has more multibank holding companies (36 as compared to First National Financial Corporation, 64 FEDERAL RESERVE 22). The organization to be acquired here is also about 50 BULLETIN 119 (1978). Applicant suggests that the competitive percent larger in terms of deposit size ($613 million compared impact of its proposal compares favorably with that presented to $413 million) and controls a larger share of Statewide in First City Bancorporation since population growth in Texas deposits (1.6 percent compared to 0.6 percent). is more rapid than in Michigan and the Applicant in First City 6. The Bay City-Saginaw market is comprised of two Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1012 Federal Reserve Bulletin • December 1979 Applicant's Market Data Number of Market Four bank Market banking Rank bank Percent concentration organizations deposits ratio ($000,000) (Percent) Fremont-Newago 6 2 22.6 26.2 83.1 Grand Rapids 16 1 1013.5 48.3 89.0 Muskegon-Grand Haven 7 6 .8 .1 87.4 Holland 3 2 88.6 31.0 100.0 Lake City-Cadillac 4 4 28.4 12.6 100.0 Detroit 49 14 147.2 .7 70.4 Big Rapids 5 1 52.8 44.2 99.1 strates that each has the potential to expand into The Flint market is also attractive for de novo the markets in which the other presently operates. entry, ranking third in per capita income. Although Applicant particularly appears to be a probable its deposit growth has been below average recently entrant into Peoples' markets in view of its past and it has experienced a slight decline in populaperformance.7 It has entered one market de novo tion, both deposits per banking office and populaafter the Board denied its proposal to acquire an tion per banking office are relatively high. Moreexisting bank in that market,8 and has acquired over, Applicant's entry into the Flint market other banks outside of its area of principal opera- through the acquisition of Peoples cannot be retions in Western Michigan. Moreover, the instant garded as a foothold entry. While People's market proposal represents Applicant's second attempt to share is considerably smaller than the Flint marenter the Bay City-Saginaw market, an earlier ket's two largest competitors, it is nevertheless the application to acquire a large Saginaw bank having third largest of eleven banking organizations in the been denied by the Board in 1974.9 market, holding eight percent, or $145 million, Several of the markets involved in this proposal of the market's deposits. Finally, the Grand Rapids are either attractive for de novo entry, or could market, in which Applicant holds some 48 percent support such entry. The I*oard has reconsidered of the market deposits, appears to be capable of its previous conclusion that the Bay City-Saginaw supporting de novo entry. market is not attractive for de novo entry, National Acquisition of Peoples by Applicant would Detroit Corporation, 64 FEDERAL RESERVE BUL- eliminate the probability that these two organi- LETIN 763 (1978). It now appears that it would zations will come into direct competition. Morebe more accurate to conclude that although that over, approval of this proposal would do nothing portion of the market consisting of Gladwin and to reduce the concentration in the markets in- Bay counties is unattractive for such entry, the volved. On the other hand, denial of the proposal Midland and Saginaw County half of the market preserves the distinct possibility that Applicant and is relatively attractive since those two counties Peoples will be confronting each other in these rank sixth and seventh, respectively, in terms of concentrated markets in the future. Competition, per capita income among Michigan counties. Both and ultimately, consumers of banking services, counties also have above average population per should benefit from such an eventuality. In view banking office and above average growth in both of the facts of record, including the large market deposits and population. shares held by Applicant and Peoples, and the level of concentration and other characteristics of the markets involved, the Board concludes that consummation of this proposal would have substandard metropolitan statistical areas ("SMSAs"). Within the stantially adverse effects on potential competition sub-market of the Bay City SMS A, Peoples is the largest in these markets. These adverse effects alone are banking organization, holding approximately 42 percent of total deposits. sufficient to warrant denial of the proposal10 unless 7. Although Peoples presently appears somewhat less capa- they are outweighed by factors related to the ble of expansion than Applicant, its sound financial condition and record of previous expansion demonstrate that its potential convenience and needs of the communities to be for expansion cannot be disregarded. served. 8. Old Kent Financial Corporation (National Lumberman's Bank and Trust Company), 61 FEDERAL RESERVE BULLETIN 247 (1975). 9. Old Kent Financial Corporation (Century Financial Cor- 10. Moreover, the inter-relationship between approving a poration), 60 FEDERAL RESERVE BULLETIN 301 (1974). proposal that may perpetuate the concentrated nature of a large Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1013 The Board has, in the recent past, approved Order Approved Under Bank Merger Act acquisitions in Michigan with facts somewhat similar to those involved in this proposal.11 Com- United California Bank, Los Angeles, California petitive analysis involves questions of judgment that require close scrutiny of the particular facts Gavilan Bank, of each case, however, and the Board is satisfied Gilroy, California that this proposal involves facts sufficiently different to warrant the opposite result. Order Approving The financial and managerial resources and fu- Application for Merger of Banks ture prospects of Applicant, Peoples, and their United California Bank, Los Angeles, Califorsubsidiary banks, are satisfactory and consistent nia ("Applicant"), a State member bank of the with approval of the application. It does not appear Federal Reserve System, has applied for the that Applicant's acquisition of Peoples would re- Board's approval, pursuant to the Bank Merger sult in substantial benefits with regard to the serv- Act (12 U.S.C. § 1828(c)), to merge with Gavilan ices provided to the relevant communities. Al- Bank, Gilroy, California ("Bank"), under the though Applicant proposes to improve certain charter and title of Applicant. As an incident to services offered by Peoples, both organizations are the proposed merger, the existing offices of Gavisufficiently large to serve their respective commulan Bank would become branch offices of the nities adequately, and to expand the services they resulting bank. presently provide. Thus, although convenience As required by the Bank Merger Act, notice and needs considerations, including Community of the proposed transaction in a form approved Reinvestment Act factors, are consistent with apby the Board was published, and reports on comproval of the proposal, these factors do not outpetitive factors were requested from the United weigh the adverse competitive considerations de- States Attorney General, the Comptroller of the scribed above. Currency, and the Federal Deposit Insurance Cor- It is the Board's judgment that the proposed poration. The time for filing comments and reports transaction would not be in the public interest and has expired, and all comments and reports received should be denied. On the basis of the record, the have been considered in light of the factors set application is denied for the reasons summarized forth in the Act. above. Applicant is a wholly-owned subsidiary of By order of the Board of Governors, effective Western Bancorporation, Los Angeles, California. November 2, 1979. Applicant is the fifth largest bank in California Voting for this action: Chairman Volcker and Gover- with total deposits of $7.9 billion, representing 7 nors Wallich, Coldwell, Partee, Teeters, and Rice. percent of commercial bank deposits in the state.1 Voting against this action: Governor Schultz. Bank, with $50.7 million in deposits, representing less than 0.1 percent of statewide deposits, ranks (Signed) GRIFFITH L. GARWOOD, as the 85th largest commercial bank in California. [SEAL] Deputy Secretary of the Board. Bank's acquisition by Applicant would not significantly increase Applicant's share of deposits in the State and thus would have no significant adverse effect on the concentration of banking resources in California. Bank, with four offices in the San Francisconumber of local markets and the recent increase in statewide Oakland-San Jose metropolitan banking market, concentration cannot be ignored. holds .08 percent of market deposits. Applicant 11. First National Financial Corporation, supra; DEis also represented in this banking market, with TROITBANK Corporation, 63 FEDERAL RESERVE BULLETIN 926 (1977). These decisions are distinguishable from the pres- a 2.42 percent market share. The institution surent proposal on several grounds, however. DETROITBANK viving the merger would hold 2.50 percent of the involved an acquisition in a market that was not attractive for de novo entry for example, whereas several of the markets market deposits and would continue to be ranked involved here are attractive for such entry. First National, on at fourth. Approval of the subject proposal would the other hand, involved banking organizations that, although result in a slight increase in the concentration of similar in size to Peoples, were significantly smaller than Applicant. The increase in size of the resulting organization banking resources within the San Franciscoin First National was expected to produce certain competitive benefits that Applicant is already sufficiently large to attain without acquiring Peoples. 1. All banking data are as of September 30, 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1014 Federal Reserve Bulletin • December 1979 Oakland-San Jose banking market and would re- pursuant to delegated authority from the Board of move one independent competitor from the mar- Governors, effective November 7, 1979. ket. However, in view of the market shares of the institutions involved, it appears that consum- (Signed) GRIFFITH L. GARWOOD, mation would have only a slightly adverse effect [SEAL] Deputy Secretary of the Board. on existing competition. Bank is also represented in two markets in which Applicant has no offices. The two branches Determination Under Section 2 of of Bank located in the Santa Cruz metropolitan Bank Holding Company Act banking market hold a 2.2 percent market share and rank sixth among seven banking institutions. Citicorp, Bank is the smallest of four banks in the Hollis- New York, New York ter-San Juan Bautista banking market with a 5.8 Order Granting Determination percent market share. Applicant's closest branches Under the Bank Holding Company Act to any of these three offices of Bank are some 30 miles distant. While Applicant has the re- Citicorp, New York, New York, a bank holding sources to expand de novo into these areas, it is company within the meaning of the Bank Holding unlikely to do so given current demographic Company Act, has requested a determination trends. Therefore, in view of the small market under section 2(g)(3) of the Act (12 U.S.C. shares held by Bank in these two markets, con- § 1841(g)(3)), that Citicorp is not in fact capable summation of this proposal would have only directly or indirectly of controlling the transferees slightly adverse effects on potential competition. of shares of Cresap, McCormick and Paget, Inc. ("CMP"), a management consulting firm, despite The financial and managerial resources of Apthe indebtedness of the transferees to Citicorp as plicant and Bank are regarded as generally satisa result of their purchase of such shares and other factory and their future prospects appear favorable. indebtedness of CMP to Citicorp. This request has The financial and managerial resources of the been made in connection with a sale by Citicorp resulting institution would also be generally satisof all CMP's outstanding voting shares to 17 factory and its future prospects favorable. The management employees of CMP.1 range and quality of banking services provided to Under section 2(g)(3) of the Act, shares transcustomers of Bank would be increased through the ferred after January 1, 1966, by any bank holding proposed merger. Bank's customers would benefit company to a transferee that is indebted to the by the availability of Applicant's wide range of transferor are deemed to be owned or controlled lending and leasing services, larger lending limits, by the transferor unless the Board, after opportutrust department operations, credit card services nity for hearing, determines that the transferor is and investment counseling services. Convenience not in fact capable of controlling the transferee. and needs factors are sufficient to outweigh the Notice of an opportunity for hearing with reslightly adverse competitive effect of the proposed spect to Citicorp's request for a determination merger. Thus, it has been determined that conunder section 2(g)(3) was publsihed in the Federal summation of the proposed merger would be in Register on October 4, 1977 (42 Federal Register the public interest and that the application should 53,998 (1977)). The time for requesting a hearing be approved. has expired, and no request has been received by On the basis of the record, the application is the Board. Citicorp has submitted to the Board approved for the reasons set forth above. The evidence to show that it is not in fact capable of transaction shall not be made before the thirtieth controlling the transferees of CMP shares, and the calendar day following the effective date of this Board has received no contradictory evidence. Order or later than three months after the effective date of this Order, unless such period is extended for good cause by the Board of Governors or by 1. Arnold B. Becker, Rodney F. Beckwith, Robert L. Bush, the Federal Reserve Bank of San Francisco, pur- James W. Buttimer, Rodman L. Drake, Bill G. Evans, Chris R. Geckeler, Milton F. Heller, Jr., John H. Hoffman, Fred suant to delegated authority. H. Meyer, Georges Petipas, Allan J. Prager, Nicholas J. Radell, George I. Roen, James J. Sullivan, Peter Van Pelt, By order of the Secretary of the Board, acting and George M. Whitmore, Jr. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1015 It is hereby determined that Citicorp is not in holding company within the meaning of section fact capable of controlling the transferees of 2(a) of the Bank Holding Company Act of 1956, CMP's shares. This determination is based upon as amended ("BHC Act") (12 U.S.C. § 1841(a)), the evidence of record in this matter, including by virtue of its ownership prior to December 31, information reflecting that the sale of CMP's 1978, of more than 25 percent of the outstanding shares by Citicorp was the result of arm's length voting shares of American Financial Corporation, negotiations; that there are no officer or director Cincinnati, Ohio ("AFC"), which owns all of the interlocks between CMP and Citicorp or its sub- outstanding voting shares of The Provident Bank, sidiaries, and that other operational relationships Cincinnati, Ohio ("Bank"), has requested a dehave been terminated; that the transferees have termination, pursuant to the provisions of section sufficient personal resources to enable them to 2(g)(3) of the BHC Act (12 U.S.C. § 1841(g)(3)), resist any attempt by Citicorp to control them or that UDFIC is not in fact capable of controlling to influence their management of CMP; and that Carl H. Lindner and Robert D. Lindner ("Lindner the terms governing the debt relationships are Brothers"), individuals to whom it transferred its limited to those of the type customarily required shares of AFC, notwithstanding the fact that the in comparable circumstances, and reasonably nec- two brothers are the partners of the UDFIC partessary, consistent with sound banking practices, nership and are directors of AFC, and one of the to assure repayment. Furthermore, Citicorp has brothers is a director of Bank. undertaken that it will not, in any manner, exercise Under the provisions of section 2(g)(3) of the control or a controlling influence over the trans- BHC Act, shares transferred after January 1, 1966, ferees or CMP, and if it is necessary that Citicorp by any bank holding company to a transferee that reacquire CMP shares upon the default of any is indebted to the transferor or has one or more transferee, Citicorp will undertake to dispose of officers, directors, trustees, or beneficiaries in those shares promptly. common with or subject to control by the transferer Accordingly, it is ordered that the request of are deemed to be indirectly owned or controlled Citicorp for a determination pursuant to section by the transferor unless the Board, after opportu- 2(g)(3) is granted. This determination is based on nity for a hearing, determines that the transferor representations made to the Board by Citicorp and is not in fact capable of controlling the transferee. CMP. In the event that the Board should hereafter It is hereby determined that UDFIC is not in determine that facts material to this determination fact capable of controlling the Lindner Brothers. are otherwise than as represented, or that Citicorp This determination is based upon the evidence of has failed to disclose to the Board other material record in this matter, including the following facts. facts, this determination may be revoked, and any UDFIC is a partnership in which the Lindner change in the facts and circumstances relied upon Brothers are the sole partners, holding 60 percent in making this determination could result in the and 40 percent interests, respectively. Under sec- Board's reconsidering the determination made tion 4(c)(12) of the BHC Act, UDFIC filed an herein. irrevocable declaration to divest all of its banking By order of the Board of Governors, acting interests by 1981. Accordingly, pursuant to a plan through its General Counsel, pursuant to delegated of liquidation of the partnership, UDFIC made pro authority (12 CFR § 265.2(b)(1)), effective No- rate distributions of 38 percent of the shares of vember 7, 1979. AFC to the Lindner Brothers, and presently has no interest in FAC. There is no evidence that (Signed) GRIFFITH L. GARWOOD, UDFIC's transfer of shares to the Lindner Brothers [SEAL] Deputy Secretary of the Board. was intended as a means for perpetuating UDFIC's control over AFC. Moreover, from the record it appears that control over UDFIC and the trans- United Dairy Farmers Investment Company, ferred shares of AFC rests with the Lindner Cincinnati, Ohio Brothers as individuals, and there is no evidence that UDFIC controls or is in fact capable of con- Order Granting Determination trolling, the Lindner Brothers in their capacity as Under the Bank Holding Company Act transferees of sahres of AFC, or otherwise. United Dairy Farmers Investment Company, Accordingly, it is ordered that the request of Cincinnati, Ohio ("UDFIC"), a registered bank UDFIC for a determination pursuant to section Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1016 Federal Reserve Bulletin • December 1979 2(g)(3) be and hereby is granted. This determi- control of 2,756 shares, representing more than nation is based upon the representations made to 91 percent of the outstanding voting shares, of the Board by UDFIC and the Lindner Brothers. Bank. In the event the Board should hereafter determine 2. AZL became a bank holding company on that facts material to this determination are other- December 31, 1970 as a result of the 1970 wise than as represented, or that UDFIC or the amendments to the BHC Act by virtue of its Lindner Brothers has failed to disclose to the ownership and control at that time of more than Board other material facts, this determination may 25 percent of the outstanding voting shares of be revoked, and any change in the facts or cir- Bank, and it registered as such with the Board cumstances relied upon in making this determi- on October 6, 1971. AZL would have been a bank nation could result in a reconsideration of the holding company on July 7, 1970, if the BHC determination made herein. Act Amendments of 1970 had been in effect on By order of the Board of Governors, acting such date, by virtue of its ownership in that date through its General Counsel pursuant to delegated of more than 25 percent of the outstanding voting authority (12 C.F.R. § 265.2(b)(1)), effective No- shares of Bank. AZL presently owns 2 and controls vember 29, 1979. 2,8663 shares, representing 96.2 percent of the outstanding voting shares, of Bank. (Signed) GRIFFITH L. GARWOOD, 3. AZL holds property acquired by it on or [SEAL] Deputy Secretary of the Board. before July 7, 1970, the disposition of which would be necessary or appropriate to effectuate section 4 of the BHC Act if AZL were to remain Certifications Pursuant to the a bank holding company beyond December 31, 1980, and which property is "prohibited prop- Bank Holding Company Tax Act of 1976 erty" within the meaning of section 1103(a) of AZL Resources, Inc., the Code. Phoenix, Arizona On the basis of the foregoing information, it is hereby certified that: [Docket No. TCR 76-174] (A) AZL is a qualified bank holding corporation Prior Certification Pursuant to the Bank Holding within the meaning of the section 1103(b) of the Company Act of 1976 Code, and satisfies the requirements of that subsection; AZL Resources, Inc. ("AZL"), Phoenix, Ari- (B) 2,806 of the shares of Bank that AZL zona ("AZL") has requested a prior certification proposes to sell to an unaffiliated individual are pursuant to section 6158(a) of the Internal Revenue all or part of the property by reason of which AZL Code ("Code"), as amended by section 3(a) of controls (within the meaning of section 2(a) of the the Bank Holding Company Tax Act of 1976 BHC Act) a bank; and ("Tax Act"), that its proposed sale of 2,806 (C) the sale of such shares of Bank to an shares of common stock of The Alamosa National unaffiliated individual is necessary or appropriate Bank, ("Bank") Alamosa, Colorado, to an unaf- to effectuate the policies the BHC Act. filiated individual, is necessary or appropriate to This certification is based upon the facts set forth effectuate the policies of the Bank Holding Com- above. In the event the Board should hereafter pany Act (12 U.S.C. § 1841 et seq.) ("BHC determine that facts material to this certification Act"). are otherwise than as represented by AZL or that In connection with this request the following AZL has failed to disclose to the Board other information is deemed relevant for purposes of issuing the certification:1 1. AZL is a corporation organized on February 2. Although AZL owns all of the shares that are to be sold in this transaction, 20 of such shares are registered in the name 1, 1963, under the laws of the state of Arizona. of AZL's President and Chief Executive Officer. On January 1, 1964, AZL acquired ownership and 3. Subsequent to July 7, 1970, AZL purchased 60 shares of Bank. Under section 1101(c)(1) of the Code, property acquired after July 7, 1970, generally does not qualify for the tax benefits of section 6153(a) of the Code when acquired by an otherwise qualified bank holding company. AZL has not 1. This nformation derives from AZL's communications claimed any applicable exception to this general rule, and the with the Board concerning its request for this certification, 60 shares acquired after July 7, 1970, do not appear to be AZL's Registration Statement filed with the Board pursuant eligible for tax benefits under the Tax Act and are therefore to the BHC Act, and other records of the Board. not the subject of this certification. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1017 material facts, it may revoke this certification. GATX Corporation (formerly General Ameri- By order of the Board of Governors, acting can Transportation Corporation), Chicago, Illinois ("GATX") has requested a prior certifithrough its General Counsel, pursuant to delegated cation pursuant to section 6158(a) of the Internal authority (12 C.F.R. § 265.2(g)(3)), effective No- Revenue Code ("Code"), as amended by section vember 21, 1979. 3(a) of the Bank Holding Company Tax Act of 1976 ("Tax Act"), that its proposed sale of 582,591 shares of common stock ("Bank (Signed) GRIFFITH L. GARWOOD, Shares") of LaSalle National Bank, Chicago, [SEAL] Deputy Secretary of the Board. Illinois ("Bank") to Algemene Bank Netherlands N.V. Amsterdam, The Netherlands ("ABN") for cash is necessary or appropriate to effectuate the policies of the Bank Holding Company Act (12 GATX Corporation, U.S.C. § 1841 et seq.) ("BHC Act"). Chicago, Illinois Prior Certification Pursuant to the Bank Holding Company Tax Act of 1976 By order of the Board of Governors acting through its General Counsel, pursuant to delegated [Docket No. CR 76-102] authority (12 C.F.R. 265.2(b)(3)), effective No- CORRECTION vember 15, 1979. In the prior certification issued on August 13, 1979, to GATX Corporation, Chicago, Illinois ("GATX"), the first paragraph on the first page (Signed) THEODORE E. ALLISON, is corrected to read as follows: [SEAL] Secretary of the Board. ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During March 1979 the Board of Governors approved the applications listed below. Copies are available upon request to Publications Services, Room MP-510, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Board action (effective Applicant Bank(s) date) Baylor Bancshares, Inc., The First National Bank of Seymour, November 7, 1979 Seymour, Texas Seymour, Texas Utah Bancorporation, Valley Central Bank, November 21, 1979 Salt Lake City, Utah Richfield, Utah Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1018 Federal Reserve Bulletin • December 1979 By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date Beggs Bancshares, Inc., The Bank of Beggs, Kansas City November 25, 1979 Beggs, Oklahoma Beggs, Oklahoma CENTER POINT BANSHARES Iowa State Bank and Trust Chicago November 27, 1979 CORP., Crawfordsville, Iowa Co., Center Point, Iowa Commerce Bancshares, Inc., American Security Bank Kansas City, Missouri of Pacific, Pacific, Missouri Kansas City November 20, 1979 Commercial Bankshares, Inc. Bank of Hampton, Atlanta November 28, 1979 Groffin, Georgia Hampton, Georgia Eagle Bancshares, Inc., First State Bank of Shal- Dallas November 23, 1979 Shallowater, Texas lowater, Shallowater, Texas Granbury Bancshares, Inc., Granbury State Bank, Dallas November 16, 1979 Granbury, Texas Granbury, Texas IRVING BANCORP, INC., The Irving Bank, Chicago November 23, 1979 Chicago, Illinois Chicago, Illinois Maitland Bancshares, Inc., The Maitland Farmers Bank, Kansas City November 19, 1979 Maitland, Missouri Maitland, Missouri Mid-Continental American Hampton Bank, Chicago November 27, 1979 Bancorporation, Inc., Milwaukee, Wisconsin Milwaukee, Wisconsin Moore Bancshares Corp., First State Bank, Dallas November 23, 1979 Dumas, Texas Dumas, Texas Pioneer Bancshares, Inc., Pioneer National Bank, Kansas City November 26, 1979 Ponca City, Oklahoma Ponca City, Oklahoma Purdy Bancshares, Inc., First State Bank of Purdy, St. Louis November 26, 1979 Purdy, Missouri Purdy, Missouri Reliable Bancshares, Inc., First State Bank of Pattons- Kansas City November 26, 1979 Albany, Missouri burg, Pattonsburg, Missouri Tonganoxie Bancshares, Inc., The First State Bank Tonganoxie, Kansas of Tonganoxie, Kansas City November 19, 1979 Tonganoxie, Kansas Tri City Bancshares Corporation, Tri City National Bank Oak Creek, Wisconsin of Oak Creek, Oak Creek, Chicago November 21, 1979 Wisconsin, et al. Wolbach Insurance Agency, Inc., Broken Bow Enterprises, Inc., Kansas City November 19, 1979 Wolbach, Nebraska Broken Bow, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1019 Section 4 Nonbanking company Reserve Effective Applicant (or activity) Bank date Town Financial Corporation, Retention of Town Finance Hartford City, Indiana Company, Inc., Chicago November 26, 1979 Hartford City, Indiana PENDING CASES INVOLVING THE BOARD OF GOVERNORS Does not include suits against the Federal Reserve Banks in which the Board of Governors is not named a party. Boggs, etal. v. Board of Governors, filed October Independent Insurance Agents of America, et al., 1979, U.S.C.A. for the Eighth Circuit. v. Board of Governors, filed April 1979, Independent Bank Corporation v. Board of Gov- U.S.C.A. for the District of Columbia. ernors, filed Ocitboer 1979, U.S.C.A. for the Sixth Circuit. Independent Insurance Agents of America, et al., Wiley v. United States, et al., filed September v. Board of Governors, filed March 1979, 1979, U.S.D.C. for the District of Columbia. U.S.C.A. for the District of Columbia. County National Bancorporation and TGB Co. v. Credit and Commerce American Investment, et Board of Governors, filed September 1979, al., v. Board of Governors, filed March 1979 U.S.C.A. for the Eighth Circuit. U.S.C.A. for the District of Columbia. State of Indiana v. The United States of America, Consumers Union of the United States, v. G. et al., filed September 1979, U.S.D.C. for the William Miller, et al., filed December 1978, District of Columbia. U.S.D.C. for the District of Columbia. Edwin F. Gordon v. Board of Governors, et al., Manchester-Tower Grove Community Organifiled August 1979, U.S.D.C. for the Northern zation/ACORN v. Board of Governors, filed District of Georgia. 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.C.A. for the Fifth Cir- Beckley v. Board of Governors, filed July 1978, cuit. U.S.C.A. for the Northern District of Illinois. American Bankers Association v. Board of Gov- Independent Bankers Association of Texas v. First ernors, et al., filed August 1979, U.S.D.C. for National Bank in Dallas, et al., filed July 1978, the District of Columbia. U.S.D.C. for the Northern District of Texas. Gregory v. Board of Governors, filed July 1979, Mid-Nebraska Bancshares, Inc. v. Board of Gov- U.S.D.C. for the District of Columbia. ernors, filed July 1978, U.S.C.A. for the Dis- Donald W. Riegel, Jr. v. Federal Open Market trict of Columbia. Committee, filed July 1979, U.S.D.C. for the Security Bancorp and Security National Bank v. District of Columbia. Board of Governors, filed March 1978, Connecticut Bankers Association, etal., v. Board U.S.C.A. for the Ninth Circuit. of Governors, filed May 1979, U.S.C.A. for Vickars-Henry Corp. v. Board of Governors, filed the District of Columbia. December 1977, U.S.C.A. for the Ninth Cir- Ella Jackson et al., v. Board of Governors, filed cuit. May 1979, U.S C.A. for the Fifth Circuit. Investment Company Institute v. Board of Gov- Memphis Trust Company v. Board of Governors, ernors, filed September 1977, U.S.D.C. for the filed May 1979, U.S.C.A. for the Sixth Circuit. District of Columbia. Independent Insurance Agents of America, et al., Roberts Farms, Inc. v. Comptroller of the Curv. Board of Governors, filed May 1979, rency, et al., filed November 1975, U.S.D.C. U.S.C.A. for the District of Columbia. for the Southern District of California. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1 Financial and Business Statistics CONTENTS Domestic Financial Statistics WEEKLY REPORTING COMMERCIAL BANKS A3 Monetary aggregates and interest rates Assets and liabilities 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

2 Federal Reserve Bulletin • December 1979 International Statistics SECURITIES MARKETS AND CORPORATE FINANCE A54 U.S. international transactions— A36 New security issues—State and local Summary governments and corporations A55 U.S. foreign trade A37 Open-end investment companies—Net A55 U.S. reserve assets sales and asset position A56 Foreign branches of U.S. banks— A37 Corporate profits and their distribution Balance sheet data A38 Nonfinancial corporations—Assets and A58 Selected U.S. liabilities to foreign liabilities official institutions A38 Business expenditures on new plant and equipment REPORTED BY BANKS IN THE UNITED STATES A39 Domestic finance companies—Assets and liabilities; business credit A58 Liabilities to and claims on foreigners A59 Liabilities to foreigners A61 Banks' own claims on foreigners REAL ESTATE A62 Banks' own and domestic customers' A40 Mortgage markets claims on foreigners A41 Mortgage debt outstanding A62 Banks' own claims on unaffiliated foreigners A63 Claims on foreign countries— Combined domestic offices and CONSUMER INSTALLMENT CREDIT foreign branches A42 Total outstanding and net change A43 Extensions and liquidations SECURITIES HOLDINGS AND TRANSACTIONS A64 Marketable U.S. Treasury bonds and FLOW OF FUNDS notes—Foreign holdings and transactions A44 Funds raised in U.S. credit markets A64 Foreign official assets held at Federal A45 Direct and indirect sources of funds to Reserve Banks credit markets A65 Foreign transactions in securities Domestic Nonfinancial Statistics REPORTED BY NONBANKING BUSINESS A46 Nonfinancial business activity— ENTERPRISES IN THE UNITED STATES Selected measures A66 Liabilities to unaffiliated foreigners A46 Output, capacity, and capacity A67 Claims on unaffiliated foreigners utilization A47 Labor force, employment, and INTEREST AND EXCHANGE RATES unemployment A48 Industrial production—Indexes and A68 Discount rates of foreign central banks gross value A68 Foreign short-term interest rates A50 Housing and construction A51 Consumer and wholesale prices A69 Guide to Tabular Presentation A52 Gross national product and income and Statistical Releases A53 Personal income and saving Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1978 1979 1979 IItteemm Q4 Q1 Q2 Q3 June July Aug. Sept. Oct. Monetary and credit aggregates (annual rates of change, seasonally adjusted m percent)13 Member bank reserves 1 Total 2.4 -3.0 -5.0 6.3 -1.5 1122..77 7.2 1111..55 2200..77 2.2 -2.9 -4.8 6.0 -3.9 13.1 7.0 12.5 18.2 3 Nonborrowed 4.7 -3.4 -8.8 8.2 9.1 20.7 10.0 4.2 1.1 8.5 5.6 4.0 9.8 6.2 11.2 12.1 '13.9 10.6 Concepts of money 2 5 M-l 4.1 -2.1 77..66 9.7 1144..88 1100..44 66..88 1111..22 22..55 6 M-1 + 2.7 -5.0 3.7 8.2 12.3 10.2 6.5 7.2 -4.6 7 M-2 7.6 1.8 8.6 12.0 14.2 12.9 11.0 12.2 8.6 8 M-3 9.3 4.7 7.9 10.5 11.9 11.4 10.0 10.9 7.5 Time and savings deposits Commercial banks 9 Total 12.3 8.4 1.2 9.0 .8 12.2 14.6 15.1 16.6 .2 -9.6 -3.1 5.5 7.8 9.4 6.6 .0 -16.9 11 Other time 18.2 15.6 18.5 19.2 17.6 18.1 19.4 21.2 32.0 12 Thrift institutions 3 11.6 8.8 6.8 8.4 8.8 9.3 8.5 8.9 6.2 13 Total loans and investments at commercial banks* 12.7 13.3 11.9 15.8 12.6 13.4 11.6 21.7 6.4 1978 1979 1979 Q4 Ql Q2 Q3 July Aug. Sept. Oct. Nov. Interest rates (levels, percent per annum) Short-term rates 14 Federal funds 5 9.58 10.07 10.18 10.94 10.47 10.94 11.43 13.77 13.18 15 Federal Reserve discount* 9.09 9.50 9.50 10.21 9.69 10.24 10.70 11.77 12.00 16 Treasury bills (3-month market yield) ? 8.57 9.38 9.38 9.67 9.24 9.52 10.26 11.70 11.79 17 Commercial paper (3-month)7.8 9.83 10.04 9.85 10.64 9.87 10.43 11.63 13.23 13.57 Long-term rates Bonds 18 U.S. government9 8.78 9.03 9.08 9.03 8.92 8.97 9.21 9.99 10.37 19 State and local government1 o 6.28 6.37 6.22 6.28 6.13 6.20 6.52 7.08 7.30 20 Aaa utility (new issue)11 9.23 9.58 9.66 9.64 9.58 9.48 9.93 10.97 11.42 21 Conventional mortgages12 10.12 10.33 10.35 11.13 10.95 11.10 11.35 12.15 n.a. 1. Includes total reserves (member bank reserve balances in the current 7. Quoted on a bank-discount basis. week plus vault cash held two weeks earlier); currency outside the U.S. 8. Beginning Nov. 1977, unweighted average of offering rates quoted Treasury, Federal Reserve Banks and the vaults of commercial banks; by at least five dealers. Previously, most representative rate quoted by and vault cash of nonmember banks. these dealers. Before Nov. 1979, data shown are for 90- to 119-day 2. M-l equals currency plus private demand deposits adjusted. maturity. 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. 6. Rate for the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • December 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 Sept. Oct.f Nov.f Oct. \1P Oct. 24^ Oct. 31 P Nov. 1P Nov. 14 P Nov. 21 P Nov. 28P SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 133,505 134,049 136,696 135,391 135,305 135,930 134,404 135,454 138,522 138,192 2 U.S. government securities! 112,967 113,775 115,240 113,221 113,931 115,440 114,473 114,620 116,046 115,232 3 Bought outright 111122,,442211 111133,,228822 114,815 113,221 111133,,337733 111144,,117711 111122,,773333 111144,,662200 111166,,004466 111155,,223322 4 Held under repurchase agreements 546 493 425 0 558 1,269 1,740 0 0 0 5 Federal agency securities 8,524 8,414 8,363 8,221 8,531 8,501 8,692 8,221 8,221 8,221 6 Bought outright 88,,222299 88,,222222 8,221 8,221 88,,222211 88,,222211 88,,222211 88,,222211 88,,222211 88,,222211 7 Held under repurchase agreements 295 192 142 0 310 280 471 0 0 0 8 Acceptances 316 173 116 0 125 336 459 0 0 0 9 Loans 1,344 2,022 1,908 1,530 2,960 3,056 1,928 1,858 1,865 2,021 10 Float 5,814 6,116 6,119 7,850 5,309 4,129 4,387 5,725 7,226 7,548 11 Other Federal Reserve assets 4,540 4,423 4,950 4,569 4,449 4,467 4,465 5,031 5,164 5,170 12 Gold stock 1111,,223399 1111,,220055 1111,,115599 11,196 11,196 1111,,119955 1111,,118811 1111,,116644 1111,,116644 1111,,114422 13 Special drawing rights certificate account 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 14 Treasury currency outstanding 12,645 12,745 12,823 12,731 12,753 12,806 12,793 12,816 12,834 12,837 ABSORBING RESERVE FUNDS 15 Currency in circulation 119,109 119,813 121,392 120,257 119,812 119,546 120,129 121,230 121,744 122,252 16 Treasury cash holdings 289 347 398 339 356 370 386 397 397 403 Deposits, other than member bank reserves, with Federal Reserve Banks 17 Treasury 4,073 3,090 3,050 2,987 3,505 3,073 3,146 2,851 3,215 3,098 18 Foreign 319 310 353 321 292 320 314 350 386 341 19 Other 716 645 294 636 580 648 291 253 275 346 20 Other Federal Reserve liabilities and capital 4,697 4,870 4,894 4,840 4,908 5,188 4,518 4,666 5,085 55,,119900 21 Member bank reserves with Federal Reserve Banks 29,986 31,599 32,098 31,737 31,599 32,587 31,396 31,488 33,218 32,341 End-of-month figures Wednesday figures 1979 1979 SSeepptt.. Oct.23 Nov.35 Oct. 17f Oct. 24*> Oct. 31 P Nov. 1P Nov. 14 P Nov. 21 P Nov. 28P SUPPLYING RESERVE FUNDS 22 Reserve bank credit outstanding 134,993 135,005 138,008 139,185 135,139 135,005 131,944 135,832 138,113 139,749 23 U.S. government securities1 115,458 114,580 118,087 113,744 113,084 114,580 111,853 113,147 114,814 116,239 24 Bought outright 111144,,559966 114,455 117,528 113,744 113,084 114,455 111111,,885533 111133,,114477 111144,,881144 111166,,223399 25 Held under repurchase agreements 862 125 559 0 0 125 0 0 0 0 26 Federal agency securities 9,323 8,278 9,194 8,221 8,221 8,278 8,221 8,221 8,221 8,221 27 Bought outright 88,,222244 88,,222211 88,,222211 8,221 8,221 88,,222211 88,,222211 88,,222211 88,,222211 88,,222211 28 Held under repurchase agreements 1,099 57 973 0 0 57 0 0 0 0 29 Acceptances 1,053 317 269 0 0 317 0 0 0 0 30 Loans 1,156 2,672 2,034 4,257 4,106 2,672 941 1,425 2,240 4,715 31 Float 2,654 4,685 3,729 8,089 5,268 4,685 6,265 6,882 7,605 5,367 32 Other Federal Reserve assets 5,349 4,473 4,695 4,874 4,460 4,473 4,664 6,157 5,233 5,207 33 Gold stock 1111,,222288 1111,,119944 1111,,111122 11,196 1111,,119966 1111,,119944 1111,,116644 1111,,116644 1111,,116644 1111,,111122 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 12,825 12,937 12,868 12,753 12,753 12,937 12,793 12,834 12,834 12,842 ABSORBING RESERVE FUNDS 36 Currency in circulation 118,716 120,125 121,910 120,388 119,873 120,125 120,959 121,881 122,275 122,682 37 Treasury cash holdings 337 394 450 349 359 394 394 398 405 373 Deposits, other than member bank reserves, with Federal Reserve Banks 38 Treasury 6,489 2,209 2,590 3,423 3,218 2,209 3,340 2,981 3,402 2,941 39 Foreign 348 352 490 290 301 352 354 379 294 320 40 Other 780 286 352 466 582 286 287 252 267 312 41 Other Federal Reserve liabilities and capital 5,086 5,011 5,378 4,907 4,917 5,011 4,271 4,989 4,993 55,,112244 42 Member bank reserves with Federal Reserve Banks 29,089 32,561 32,617 35,111 31,638 32,561 28,097 30,751 32,275 33,750 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. Mar. Apr. May June July Aug. Sept. Oct.® Nov.f All member banks Reserves 1 At Federal Reserve Banks 31,158 30,399 30,675 30,208 29,822 30,191 30,006 29,986 31,599 32,098 2 Currency and coin 10,330 9,776 9,737 10,044 10,154 10,552 10,523 10,726 10,681 10,740 3 Total held i 41,572 40,316 40,546 40,382 40,105 40,900 40,687 40,868 42,423 42,979 4 Required 41,447 40,059 40,548 40,095 39,884 40,710 40,494 40,863 42,002 42,770 5 Excess1 125 257 -2 287 221 190 193 5 421 209 Borrowings at Reserve Banks 2 6 Total 874 999 897 1,777 1,396 1,179 1,097 1,344 2,022 1,908 7 Seasonal 134 121 134 173 188 168 177 169 161 141 Large banks in New York City 8 Reserves held 7,120 6,892 6,804 6,658 6,346 6,605 6,408 6,437 6,655 6,695 9 Required 7,243 6,845 6,837 6,544 6,415 6,586 6,427 6,378 6,851 6,932 10 Excess -123 47 -33 114 -69 19 -19 59 -196 -237 11 Borrowings2 99 45 61 150 78 97 79 87 183 139 Large banks in Chicago 1,907 1,822 11,,880011 1,730 1,726 1,709 1,694 1,654 1,790 1,869 1,900 1,809 1,824 1,712 1,697 1,713 1,706 1,760 1,859 1,950 14 Excess 7 13 -23 18 29 -4 -12 -106 -69 -81 10 26 18 60 64 45 6 80 136 118 Other large banks 16,446 15,844 15,948 1155,,992266 1155,,998899 16,374 16,370 16,426 16,519 16,663 16,342 15,802 16,014 15,893 15,877 16,339 16,321 16,491 16,796 17,000 104 42 -66 33 112 35 49 -65 -277 -337 276 215 271 721 586 517 484 600 856 804 All other banks 16,099 15,758 1155,,999933 1166,,006688 1166,,004444 16,212 16,215 16,351 16,495 16,496 15,962 15,603 15,873 15,946 15,895 16,072 16,040 16,234 16,424 16,420 22 Excess 137 155 120 122 149 140 175 117 71 76 489 713 547 846 668 520 528 577 847 847 Edge corporations n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 9900 330088 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 72 287 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 18 21 U.S. agencies and branches n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 118855 27 Required n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 181 29 Excess n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 4 Weekly averages of daily figures for week (in 1979) ending Sept. 26 Oct. 3 Oct. 10 Oct. \1*> Oct. 24p Oct. 31 p Nov. Nov. 14 p Nov. 21 p Nov. 28p All member banks Reserves 30 At Federal Reserve Banks 30,553 31,036 30,041 31,737 31,599 32,587 31,396 31,488 33,218 32,341 31 Currency and coin 10,836 10,954 11,079 10,692 9,942 10,891 11,046 11,242 10,045 10,542 32 Total held i 41,545 42,136 41,264 42,571 41,684 43,621 42,585 42,871 43,406 43,022 33 Required 41,519 41,769 40,723 42,570 41,533 43,285 42,109 42,618 43,291 42,887 34 Excess1 26 367 541 1 151 336 476 253 115 135 Borrowings at Reserve Banks2 35 Total 1,159 1,114 937 1,530 2,960 3,056 1,928 1,858 1,865 2,021 180 177 136 151 164 187 151 133 151 136 Large banks in New York City 6,388 6,782 6,727 7,035 6,410 6,753 6 AH 6,578 6,888 6,699 6,395 6,774 6,496 7,264 6,539 7,136 6,729 6,804 7,316 6,779 -7 8 231 -229 -129 383 -252 -226 -428 -80 29 99 0 348 308 96 78 107 149 239 Large banks in Chicago 1,809 1,852 1,802 1,926 1,795 1,860 1,884 1,850 1,881 1,875 1,803 1,855 1,773 1,967 1,830 1,866 1,879 1,951 1,994 1,960 43 Excess 6 -3 29 -41 -35 -6 5 -101 -113 -85 0 1 64 2 226 309 2 0 75 424 Other large banks 16,669 16,815 16,424 16,429 16,559 16,447 17,093 16,296 16,450 16,969 16,743 16,671 16,339 17,022 16,583 17,279 16,843 16,744 17,142 17,197 -74 144 85 -593 -24 -832 250 -448 -692 -228 579 441 405 582 1,265 1,391 835 997 779 601 All other banks 16,679 16,687 16,311 16,291 16,574 16,508 16,371 16,460 16,507 16,567 16,578 16,469 16,115 16,317 16,581 16,686 16,364 16,236 16,488 16,565 101 218 196 -26 -7 -178 7 224 19 2 551 573 468 598 1,161 1,260 1,013 754 862 757 Edge corporations n.a. n.a. n.a. n.a. n.a. 339966 309 331122 292 310 n.a. n.a. n.a. n.a. n.a. 318 294 282 276 298 n.a. n.a. n.a. n.a. n.a. 78 15 30 16 12 U.S. agencies and branches 56 Reserves held n.a. n.a. n.a. n.a. n.a. n.a. n.a. 609 79 91 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 601 75 88 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 8 4 3 1. Adjusted to include waivers of penalties for reserve deficiencies in nonmember bank joins the Federal Reserve System. For weeks for which accordance with Board policy, effective Nov. 19, 1975, of permitting figures are preliminary, figures by class of bank do not add to total transitional relief on a graduated basis over a 24-month period when a because adjusted data by class are not available. nonmember bank merges into an existing member bank, or when a 2. Based on closing figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • December 1979 1.13 FEDERAL FUNDS TRANSACTIONS Money Market Banks Millions of dollars, except as noted 1979, week ending Wednesday TTyyppee Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Total, 46 banks Basic reserve position 1 Excess reserves1 56 361 67 58 194 288 113 16 -32 LESS: 2 Borrowings at Federal Reserve Banks 252 221 489 834 869 213 438 243 775577 3 Net interbank federal funds transactions 19,007 23,129 23,567 21,712 2200,,333322 22,729 2222,,881177 2200,,994455 1166,,993399 EQUALS: Net surplus, or deficit (—) 4 Amount --1199,,220044 --2222,,998888 --2233,,998899 --2222,,448888 --2211,,000088 --2222,,665533 --2233,,114422 --2211,,117733 --1177,,772288 5 Percent of average required reserves 108.4 133.5 128.7 129.1 113.8 126.4 128.6 112.8 96.9 Interbank federal funds transactions Gross transactions 6 Purchases 28,904 32,356 31,379 28,320 27,700 28,973 30,733 23,397 25,712 7 Sales 9,896 9,227 7,812 6,608 7,367 6,244 7,915 7,451 8,773 8 Two-way transactions2 6,767 7,198 6,190 55,,447788 55,,773377 5,308 5,890 55,,661144 66,,669944 Net transactions 9 Purchases of net buying banks 22,136 25,159 25,189 22,841 21,963 23,665 24,843 22,783 19,018 10 Sales of net selling banks 3,129 2,030 1,621 1,130 1,630 937 2,025 1,838 2,079 Related transactions with U.S. government securities dealers 11 Loans to dealers3 2,973 3,551 2,992 2,575 1,800 2,322 2,121 2,293 2,488 12 Borrowings from dealers4 2,103 1,520 1,590 1,571 1,285 1,546 980 1,177 1,115 13 Net loans 870 2,030 1,402 1,004 514 776 1,141 1,116 1,373 8 banks in New York City Basic reserve position 14 Excess reserves1 15 228 6 33 202 92 46 18 -20 LESS: 15 Borrowings at Federal Reserve 56 0 342 168 58 0 0 142 221 16 Net interbank federal funds transactions 55,,443399 7,175 55,,888800 4,883 55,,665566 6,256 88,,112222 55,,668822 33,,002277 EQUALS: Net surplus, or deficit (—) 17 Amount --55,,448800 --66,,994477 --66,,221166 --55,,001199 -5,512 -6,165 -8,076 --55,,880055 --33,,226688 18 Percent of average required 89.8 119.0 94.7 82.5 86.4 101.3 131.8 88.1 53.6 Interbank federal funds transactions Gross transactions 6,930 8,331 7,256 6,402 7,300 7,454 9,004 6,958 5,178 20 Sales 1,491 1,155 1,375 1,519 1,645 1,198 882 1,276 2,151 21 Two-way transactions2 976 11,,115555 11,,337755 11,,551199 1,459 1,198 881 11,,227766 11,,882288 Net transactions 22 Purchases of net buying banks 5,955 7,175 5,881 4,884 5,841 6,256 8,122 5,681 3,350 23 Sales of net selling banks 516 0 0 0 186 0 0 0 323 Related transactions with U.S. government securities dealers 24 Loans to dealers3 1,854 2,340 2,139 1,838 1,107 1,407 1,400 1,489 1,722 748 714 780 745 595 698 543 557 557 1,105 1,625 1,359 1,093 512 709 857 932 1,165 38 banks outside New York City Basic reserve position 4411 113344 61 25 -8 196 67 -2 -12 LESS: 28 Borrowings at Federal Reserve 196 221 147 666 811 213 438 101 536 29 Net interbank federal funds 13,569 15,954 17,686 16,829 14,677 16,472 14,695 15,264 13,912 EQUALS: Net surplus, or deficit (—) 30 Amount -13,724 --1166,,004411 --1177,,777722 -17,469 15,496 -16,488 -15,066 -15,367 -14,460 31 Percent of average required 118.2 140.9 147.1 151.5 128.4 139.3 126.9 126.2 118.6 Interbank federal funds transactions Gross transactions 21,973 24,026 24,123 21,917 20,399 21,519 12,729 21,439 20,535 33 Sales 8,405 8,072 6,437 5,089 5,723 5,047 7,034 6,176 6,623 34 Two-way transactions2 5,792 6,042 4,815 3,959 4,278 4,110 5,009 4,338 4,866 Net transactions 35 Purchases of net buying banks 16,182 17,983 19,308 17,958 16,122 17,409 16,721 17,101 15,669 36 Sales of net selling banks 2,613 2,030 1,621 1,130 1,444 937 2,025 1,838 1,757 Related transactions with U.S. government securities dealers 37 Loans to dealers3 1,120 1,211 853 737 693 915 721 804 766 1,355 806 809 827 691 848 437 621 558 -235 405 43 -90 2 68 284 184 203 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 Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 5 banks in City of Chicago Basic reserve position 40 Excess reserves1 0 2299 3 1199 4 1199 1122 6 9 LESS: 41 Borrowings at Federal Reserve Banks 0 6644 0 221133 330000 0 0 7755 422 42 Net interbank federal funds transactions 7,302 7,276 8,135 8,072 7,266 7,498 7,108 6,781 5,754 EQUALS: Net surplus, or deficit (—) -7,302 -7,310 -8,132 -8,266 -7,563 -7,480 -7,096 6,850 6,166 44 Percent of average required reserves 421.3 442.5 444411..22 448844..00 433.9 442255..77 338888..11 336677..44 333366..11 Interbank federal funds transactions Gross transactions 45 Purchases 8,614 8,810 9,496 8,963 8,380 8,481 8,470 7,928 7,222 46 Sales 1,313 1,534 1,361 891 1,114 983 1,362 1,147 1,468 47 Two-way transactions2 11,,331133 1,531 1,361 891 1,114 983 1,362 1,147 1,468 Net transactions 48 Purchases of net buying banks 7,302 7,280 8,135 8,072 7,266 7,499 7,108 6,781 5,754 49 Sales of net selling banks 0 4 0 0 0 0 0 0 0 Related transactions with U.S. government securities dealers 50 Loans to dealers 3 144 244 170 113 59 64 64 101 112 51 Borrowings from dealers* 52 4 0 68 160 110 0 28 16 52 Net loans 92 240 170 45 -101 -46 64 73 96 33 other banks Basic reserve position 41 104 58 6 -12 178 55 -8 -21 LESS: 54 Borrowings at Federal Reserve Banks 196 157 147 453 511 213 438 26 115 55 Net interbank federal funds transactions 6,267 8,678 9,552 8,757 7,410 8,974 7,587 8,482 8,158 EQUALS: Net surplus, or deficit (—) 56 Amount --66,,442222 --88,,773311 --99,,664411 --99,,220044 --77,,993333 ---999,,,000000999 -7,970 --88,,551177 --88,,229944 57 Percent of average required reserves 65.0 89.7 94.2 93.7 76.8 89.4 79.4 82.6 80.1 Interbank federal funds transactions Gross transactions 13,359 15,215 14,627 12,955 12,019 13,038 13,259 13,511 13,313 5 6 9 0 Tw S o a - l w es a y transactions2 44 7 ,, , 44 0 77 9 99 2 44 6 ,, , 55 5 11 3 22 7 5 33 , ,, 0 44 7 55 6 44 4 33 , ,, 1 00 9 66 8 99 4 3 , , 6 1 0 6 9 4 4 33 , ,, 0 11 6 22 4 88 5 3 , , 6 64 7 7 2 5 3 , ,1 0 9 2 1 9 3 5 , ,1 3 5 98 5 Net transactions 61 Purchases of net buying banks 8,880 10,704 11,173 9,886 8,855 9,910 9,612 10,320 9,915 62 Sales of net selling banks 2,613 2,026 1,621 1,130 1,444 937 2,025 1,838 1,757 Related transactions with U.S. government securities dealers 63 Loans to dealers 3 976 967 683 624 634 851 657 703 655 64 Borrowings from dealers* 1,303 802 809 759 531 737 437 592 543 65 Net loans -328 165 -127 -135 103 114 220 111 112 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 • December 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.* 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 11/30/79 date rate 11/30/79 date rate 11/30/79 date rate 11/30/79 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. Effective date (or level)— Bank Effective date (or level)— Bank Effective date (or level)— Bank All F.R. of All F.R. of All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1970, 5*4 1973—July 2. 7 1977—Aug. 30 5V4-5*/ 5% 1971—Jan. 1 8 5 5% 5 - V 5% 4 Aug. 2 1 3 4 , , 7m-7 % O Se c p t. t . 2 3 6 1 2 s 6 y 4 4 s 5 6 y % 4 19 5-5% 1974—Apr. 25, 7%-8 22 5-5% 30. 8 1978—Jan. 9 6-6% 6% 29 5 Dec. 9, 7%-8 20 6% 6% Feb. 1 1 9 3 4% 4% -5 16, m May 1 1 2 1 6% 7 - 7 7 7 July 2 1 3 6 4% 5 -5 1975—Jan. 1 6 0, , m-m July 1 3 0 7 7 V -7 4 V 4 7 7 V V 4 4 Nov. 1 1 1 9 4% 4 - % 5 Feb. 24 5 , , iykA A Se u p g t . . 2 2 1 2 7 8 V 4 7 8 V4 Dec. 13 4%-4% 7, V Oct. 16 8-8% 8% 1 7 Mar. 10, 6V4-6V4 20 8% 8% 2 4 May 1 1 6 4 , , 6 6V -61 4 / 4 Nov. 3 1 8% 9% -9% 9 9 % % 1973—J F a e n b . . 2 1 6 5 5 5 -5% 23, 6 1979—July 20 10 10 M M Ap a a r r y . . 2 1 1 1 4 2 3 8 5 ¥ 5 4 - y 6 4 1976— N Ja o n v . . 2 2 2 1 2 3 9 6 , 5 5 % % 5 5 - - % % 5 6 % A S O e u c p t g t . . . 2 1 1 2 0 7 9 1 8 1 1 0 0 1 1 % - 0 1 1 1 % 1 - 0 - 1 n % 2 1 1 1 1 10 0 1 1 2 % % June 11 6-6 % 10 12 12 15 6% In effect Nov. 30, 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 November 30, 1979 Type of deposit, and deposit interval in millions of dollars Percent Effective date Percent Effective date Net demand2 0-2 7 12/30/76 m 2/13/75 2 1 - 0 1 - 0 1 00 1134 1 1 2 2 / / 3 3 0 0 / / 7 7 6 6 1 1 2 0 2 2 / / 1 1 3 3 / / 7 7 5 5 100-400 1234 12/30/76 13 2/13/75 Over 400 16*4 12/30/76 16*A 2/13/75 Time and savings2'4 Savings 3/16/67 m 3/2/67 Time 5 0-5, by maturity 30-179 days 3 3/16/67 m 3/2/67 180 days to 4 years 1/8/76 3 3/16/67 4 years or more.. . 1 10/30/75 3 3/16/67 Over 5, by maturity 30-179 days 6 12/12/74 5 10/1/70 180 days to 4 years 2 % 1/8/76 3 12/12/74 4 years or more. . . 1 10/30/75 3 12/12/74 Legal limits 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 ,4/wwa/ IJeporf 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 Domestic Nonfinancial Statistics • December 1979 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions Percent per annum Commercial banks Savings and loan associations and mutual savings banks Type and maturity of deposit In effect Dec. 31, 1979 Previous maximum In effect Dec. 31,1979 Previous maximum Percent Effective Percent Effective Percent Effective Percent date date date 1 Savings 5% HI 119 5 7/1/73 5% 7/1/79 5% 2 Negotiable order of withdrawal accounts1 1/1/74 5 1/1/74 (8) Time accounts2 Fixed ceiling rates by maturity 4 3 9 3 0 0 - d 8 a 9 y d s a t y o s 1 year 5 5 1 % /4 9 7 / / 1 1 / / 7 7 9 3 5 5 ( 7 9 / ) 1 /73 (8) (7) (8) 7 6 5 2 2 1 ^ t t o o t o 2 2 f 4 y i e y y a e e r a a s r r 3 s s 3 3 6 6 % 7 7 / / 1 1 / / 7 7 3 3 5 5 5 * V Y 4 4 a 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 6 6 % % ( ( 7 7 ) ) 6 6 53 /4 8 4 to 6 years* 7/4 11/1/73 (10) 7% 11/1/73 (10) 1 9 0 6 8 y to e a 8 r s y e o a r r s m * o re* m m 12 6 /2 /1 3 / / 7 7 8 4 m <» ) 11/1/73 m 8 12 6 /2 /1 3 / / 7 7 8 4 7 (8 % ) 11 Issued to governmental units (all 734 maturities) 611 in m 12/23/74 12 Individual retirement accounts and 6/1/78 Keogh (H.R. 10) plans (3 years or more) 5 6/1/78 73/4 7/6/77 6/1/78 73/ 4 Special variable ceiling rates by maturity 13 6 months (money market time 14 4 yea d r e s p o o r si t m s) o 6 r e <(1n)2 ) o (1 1 2 ) ) ( ( n 1 ) 2 ) O (12 1 ) ) <(1n)2 ) ((l1l)2 ) O (12 1 ) ) 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 percentage point higher than the rate for commercial banks. Nov. 10, 1978. Beginning Mar. 15, 1979, the V4 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 834 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 83A 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 November were as follows: Nov. effective Nov. 1, 1973. I, 12.193; Nov. 8, 12.086; Nov. 15, 11.945; Nov. 22, 12.035; Nov. 29, 4. No minimum denomination. Until July 1, 1979, minimum denomina- II.022. tion was $1,000 except for deposits representing funds contributed to an 12. Effective July 1, 1979, commercial banks, savings and loan associa- Individual Retirement Account (IRA) or a Keogh (H.R. 10) Plan es- tions, and mutual savings banks are authorized to offer variable ceiling tablished pursuant to the Internal Revenue Code. The $1,000 minimum accounts with no required minimum denomination and with maturities of requirement was removed for such accounts in December 1975 and No- 4 years or more. The maximum rate for commercial banks is 1percentvember 1976, respectively. age points below the yield on 4-year U.S. Treasury securities; the ceiling 5. Accounts maturing in less than 3 years subject to regular ceilings. rate for thrift institutions is V4 percentage point higher than that for com- 6. Must have a maturity of exactly 26 weeks and a minimum denomina- mercial banks. For deposits issued in November, the ceiling was 10.3 pertion of $10,000, and must be nonnegotiable. cent at commercial banks and 10.55 percent at thrift institutions. In De- 7. July 1, 1973, for mutual savings bank; July 6, 1973 for savings and cember, the ceiling at commercial banks is 9.6 percent, and the ceiling loan associations. at thrift institutions is 9.85 percent. 8. No separate account category. 9. Multiple maturity: July 20, 1966; single maturity: September 26, NOTE. Maximum rates that can be paid by federally insured commer- 1966. cial banks, mutual savings banks, and savings and loan associations are 10. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for established by the Board of Governors of the Federal Reserve System, certificates maturing in 4 years or more with minimum denominations the Board of Directors of the Federal Deposit Insurance Corporation, of $1,000; however, the amount of such certificates that an institution and the Federal Home Loan Bank Board under the provisions of 12 could issue was limited to 5 percent of its total time and savings deposits. CFR 217, 329, and 526, respectively. The maximum rates on time de- Sales in excess of that amount, as well as certificates of less than $1,000, posits in denominations of $100,000 or more with maturities of 30-89 were limited to the 6% percent ceiling on time deposits maturing in 2l/i days were suspended in June 1970; such deposits maturing in 90 days or years or more. more were suspended in May 1973. For information regarding previous Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing interest rate ceilings on all types of accounts, see earlier issues of the in 4 years or more with minimum denominations of $1,000. There is no FEDERAL RESERVE BULLETIN, the Federal Home Loan Bank Board Journal limitation on the amount of these certificates that banks can issue. and the Annual Report of the Federal Deposit Insurance Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments All 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1979 11997766 11997777 11997788 TTyyppee ooff ttrraannssaaccttiioonn Apr. May June July Aug. Sept. Oct. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched salepurchase transactions) Treasury bills 1 Gross purchases 14,343 13,738 16,628 22,361 0 518 2,252 2,351 1,692 1,528 2 Gross sales 8,462 7,241 13,725 100 251 623 0 380 353 780 3 Redemptions 2 5,017 2,136 2,033 2 1,240 200 0 0 0 200 968 Others within 1 year1 472 3,017 1,184 0 0 42 218 57 120 28 5 Gross sales 0 0 0 0 0 0 0 0 0 0 6 Exchange, or maturity shift 792 4,499 -5,170 439 4,660 1,152 33 1,526 876 -116 7 Redemptions 0 2,500 0 2 3,240 0 0 0 0 0 668 1 to 5 years 8 Gross purchases 2 3,202 2,833 4,188 2 640 0 0 237 699 354 703 9 Gross sales 177 0 0 0 0 0 0 0 0 0 10 Exchange, or maturity shift -2,588 -6,649 -178 -439 -5,209 -1,152 -33 -1,591 -876 116 5 to 10 years 1,048 758 1,526 0 0 0 9966 140 73 0 0 0 0 0 0 0 0 0 0 0 13 Exchange, or maturity shift 1,572 584 2,803 0 350 0 0 -240 0 0 Over 10 years 642 553 1,063 0 0 0 142 81 87 0 15 Gross sales 0 0 0 0 0 0 0 0 0 0 225 1,565 2,545 0 200 0 0 305 0 0 All maturities1 219,707 20,898 24,591 2 3,000 0 561 2,945 3,327 2,326 2,259 8,639 7,241 13,725 100 251 623 0 380 353 780 2 5,017 4,636 2,033 24,480 200 0 0 0 200 1,636 Matched sale-purchase transactions 196,078 425,214 511,126 62,362 54,343 52,640 40,310 35,159 41,395 58,656 196,579 423,841 510,854 61,968 53,692 52,949 40,300 35,480 41,583 58,671 Repurchase agreements 22 Gross purchases 232,891 178,683 151,618 5,784 2,188 1155,,553311 18,464 10,539 1100,,885500 10,599 23 Gross sales 230,355 180,535 152,436 6,163 3,488 12,226 19,690 12,226 10,380 11,336 24 Net change in U.S. government securities 9,087 5,798 7,743 -2,352 -2,403 3,552 1,708 1,582 2,431 -878 FEDERAL AGENCY OBLIGATIONS Outright transactions 891 1,433 301 0 0 371 448822 0 0 0 0 0 173 0 0 0 0 0 0 0 27 Redemptions 169 223 235 * 40 33 0 * 18 3 Repurchase agreements 10,520 13,811 40,567 11,,117733 11,,114499 44,,444433 77,,224477 4,057 5,016 5,146 29 Gross sales 10,360 13,638 40,885 1,392 1,298 3,617 7,434 4,544 4,069 6,188 30 Net change in federal agency obligations 882 1,383 -426 -219 -189 1,163 295 -487 928 -1,045 BANKERS ACCEPTANCES -545 -196 0 0 0 0 0 0 0 0 32 Repurchase agreements, net 410 159 -366 48 -252 1,400 -241 -684 578 -735 -135 -37 -366 48 -252 1,400 -241 -684 578 -735 34 Total net change in System Open Market 9,833 7,143 6,951 --22,,552244 -2,844 66,,111155 1,761 412 3,937 -2,658 1. Both gross purchases and redemptions include special certificates and a redemption. In Oct. 1979, $668 million of maturing 2- and 4-year created when the Treasury borrows directly from the Federal Reserve, notes were exchanged for a like amount of short-term bills, later exchanged as follows (millions of dollars): Sept. 1977, 2,500; Mar. 1979, 2,600. for new 2- and 4-year notes. 2. In 1976, the System acquired $189 million of 2-year Treasury notes in exchange for maturing bills. In April 1979, the System acquired $640 NOTE. Sales, redemptions, and negative figures reduce holdings of million of 2-day cash management bills in exchange for maturing 2-year the System Open Market Account; all other figures increase such holdings. notes. New 2-year notes were later obtained in exchange for the maturing Details may not add to totals because of rounding. bills. Each of these transactions is treated in the table as both a purchase Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • December 1979 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1979 1979 Oct. 31* Nov. 7P Nov. 14*> Nov. 21 P Nov. 28 Sept. Oct.f Nov.p Consolidated condition statement ASSETS 1 Gold certificate account 11,194 11,164 11,164 11,164 11,112 11,228 11,194 11,112 2 Special drawing rights certificate account 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 3 Coin 449 441 435 427 428 454 449 415 Loans 4 Member bank borrowings 2,672 941 1,425 2,240 4,715 1,156 2,672 2,034 5 Other 0 0 0 0 0 0 0 0 Acceptances 6 Bought outright 0 0 0 0 0 0 0 0 7 Held under repurchase agreements 317 0 0 0 0 1,053 317 269 Federal agency obligations 8,221 88,,222211 8,221 8,221 8,221 8,224 8,221 8,221 9 Held under repurchase agreements 57 0 0 0 0 1,099 57 973 U.S. governments securities Bought outright 10 Bills 44,028 4411,,442266 4422,,772200 44,387 45,812 44,232 44,028 47,101 11 Certificates—Special 0 0 0 0 0 0 0 0 56,242 56,242 56,242 55,928 55,928 56,179 56,242 55,928 13 Bonds 14,185 14,185 14,185 14,499 14,499 14,185 14,185 14,499 14 Total i 114,455 111,853 113,147 114,814 116,239 114,596 114,455 117,528 15 Held under repurchase agreements 125 0 0 0 0 862 125 559 16 Total U.S. government securities 114,580 111,853 113,147 114,814 116,239 115,458 114,580 118,087 17 Total loans and securities 125,847 121,015 122,793 125,275 129,175 126,990 125,847 129,584 18 Cash items in process of collection 11,693 12,368 15,783 15,167 12,137 8,986 11,693 10,137 402 402 402 401 402 400 402 403 Other assets 20 Denominated in foreign currencies2 1,432 1,453 2,573 2,565 2,554 1,536 1,432 2,607 21 All other 2,639 2,809 3,182 2,267 2,251 3,413 2,639 1,685 155,456 151,452 158,132 159,066 159,859 154,807 155,456 157,743 LIABILITIES 110088,,002299 109,000 109,879 110,273 110,642 106,683 110088,,002299 110099,,990088 Deposits 24 Reserve accounts 25 Member Banks 32,192 27,758 29,875 31,928 33,278 29,089 32,192 32,280 26 Edge Act Corporations 369 339 356 283 369 0 369 296 27 U.S. agencies and branches of foreign banks. 0 0 520 64 103 0 0 41 28 Total 32,561 28,097 30,751 32,275 33,750 29,089 32,561 32,617 29 U.S. Treasury—General account 2,209 3,340 2,981 3,402 2,941 6,489 2,209 2,590 352 354 379 294 320 348 352 490 31 Other 286 287 252 267 312 780 286 352 32 Total deposits 35,408 32,078 34,363 36,238 37,323 36,706 35,408 36,049 7,008 6,103 8,901 7,562 6,770 6,332 7,008 6,408 34 Other liabilities and accrued dividends3 1,849 1,809 2,321 2,119 2,049 2,078 1,849 2,313 152,294 148,990 155,464 156,192 156,784 151,799 152,294 154,678 CAPITAL ACCOUNTS 1,136 1,136 1,135 1,140 1,142 1,135 1,136 1,142 1,078 1,078 1,078 1,078 1,078 1,078 1,078 1,078 948 248 455 656 855 795 948 845 155,456 151,452 158,132 159,066 159,859 154,807 155,456 157,743 40 MEMO: Marketable U.S. government securities held in custody for foreign and international 81,928 80,037 77,055 77,037 74,473 82,703 81,928 74,403 Federal Reserve note statement 41 Federal Reserve notes outstanding (issued to Bank) 124,342 124,369 124,343 112244,,552211 124,819 122,457 124,342 124,864 Collateral held against notes outstanding 42 Gold certificate account 11,194 11,164 11,164 11,164 11,112 11,228 11,194 11,112 43 Special Drawing Rights certificate account 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,743 647 1,146 1,222 1,373 848 1,743 1.246 45 U.S. government and agency securities 109,605 110,758 110,233 110,335 110,534 108,581 109,605 110,706 46 Total collateral 124,342 124,369 124,343 124,521 124,819 122,457 124,342 124,864 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. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Sept. 30 Oct. 31 Nov. 30 1 2,672 941 1,425 2,240 4,715 1,157 2,672 2,034 2 Within 15 days 2,577 866 1,335 2,166 4,681 1,079 2,577 1,894 3 95 75 90 74 34 78 95 140 4 0 0 0 0 0 0 0 0 317 0 0 0 0 1,053 317 269 6 Within 15 days 317 0 0 0 0 1,053 317 269 7 0 0 0 0 0 0 0 0 8 0 0 0 0 0 0 0 0 9 U.S. Government securities 114,580 111,853 113,147 114,814 116,239 115,458 114,580 118,087 10 Within 15 days1 6,848 5,268 3,631 3,761 5,063 3,481 6,848 4,402 11 20,930 20,845 21,362 23,182 23,077 25,171 20,930 24,787 12 91 days to 1 year 35,036 33,974 36,388 35,364 35,592 34,983 35,036 36,196 13 27,089 27,089 27,089 27,116 27,116 27,146 27,089 27,311 14 12,294 12,294 12,294 12,694 12,694 12,294 12,294 12,694 15 12,383 12,383 12,383 12,697 12,697 12,383 12,383 12,697 8,278 8,221 8,221 8,221 8,221 9,323 8,278 9,194 17 Within 15 days1 109 0 35 104 125 1,186 109 1,098 18 352 431 396 327 420 223 352 420 19 1,350 1,323 1,323 1,323 1,354 1,369 1,350 1,363 20 Over 1 year to 5 years 4,290 4,290 4,290 4,290 4,177 4,376 4,290 4,168 21 1,435 1,435 1,435 1,435 1,403 1,427 1,435 1,403 22 742 742 742 742 742 742 742 742 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) 44444444 AAAAAAAAllllllllllllllll ccccccccuuuuuuuussssssssttttttttoooooooommmmmmmmeeeeeeeerrrrrrrrssssssss 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 SMS As, 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 • December 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 May June July Aug. Sept. Oct. Seasonally adjusted MEASURES1 1 M-l 295.4 313.8 338.7 361.2 364.5 369.0 372.2 374.3 377.8 378.6 2 M-1 + 456.8 517.2 560.6 587.2 584.1 590.1 595.1 598.3 601.9 599.7 3 M-2 664.8 740.6 809.4 875.8 893.8 904.4 914.1 922.5 931.9 938.6 4 M-3 1,092.4 1,235.6 1,374.3 1,500.1 1,537.0 1,552.3 1,567.0 1,580.0 r1,594.3 1,604.5 5 M-4 745.8 803.0 883.1 972.4 984.4 989.3 998.8 1,008.4 1,020.0 1,029.7 6 M-5 1,173.5 1,298.0 1,448.0 1,596.7 1,627.6 1,637.2 1,651.7 1,666.0 1,682.4 1,695.5 COMPONENTS 7 Currency 73.8 80.8 88.6 97.5 100.7 101.5 102.4 103.6 r104.9 105.4 Commercial bank deposits 8 Demand 221.7 233.0 250.1 263.7 263.8 267.5 269.8 270.7 273.0 273.2 9 Time and savings 450.3 489.2 544.4 611.2 619.9 620.3 626.6 634.2 642.2 651.1 10 Savings 160.7 202.1 219.7 223.0 216.4 217.8 219.5 220.7 220.7 220.7 11 Negotiable CDs 2 81.0 62.4 73.7 96.6 90.6 84.9 84.7 85.9 88.1 91.1 12 Other time 208.6 224.7 251.0 291.5 313.0 317.6 322.4 327.6 333.4 342.3 13 Nonbank thrift institution deposits 3.. 427.7 495.0 564.9 624.4 643.2 647.9 652.9 657.5 662.4 665.8 Not seasonally adjusted MEASURES1 14 M-L 303.9 322.6 348.2 371.3 359.1 368.2 374.1 371.6 375.6 378.4 15 M-L + 463.6 524.2 568.0 595.2 580.6 591.0 598.8 595.6 597.8 597.8 16 M-2 670.0 745.8 814.9 881.5 892.1 906.0 917.0 919.3 927.2 935.7 17 M-3 ,095.0 1,238.3 1,377.2 1,502.8 1,536.4 1,556.3 1,573.0 1,577.1 rl,588.5 1,600.2 18 M-4 753.5 810.0 890.8 981.0 981.1 990.4 1,001.0 1,005.7 1,017.0 1,029.0 19 M-5 ,178.4 1,302.6 1,453.2 1,602.4 1,625.4 1,640.7 1,657.0 1,663.4 1,678.4 1,693.5 COMPONENTS 20 Currency 75.1 82.1 90.1 99.1 100.6 101.8 103.2 103.9 104.5 105.2 Commercial bank deposits 21 Demand 228.8 240.5 258.1 272.2 258.5 266.4 270.9 267.7 271.1 273.2 22 Member 162.8 169.4 177.5 183.0 171.8 177.1 180.5 178.5 179.4 180.4 23 Domestic nonmember 62.6 67.5 76.2 85.2 82.6 84.8 86.1 85.3 87.4 88.3 24 Time and savings 449.6 487.4 542.6 609.7 622.0 622.2 627.0 634.1 641.4 650.6 25 Savings 159.1 200.2 217.7 220.9 218.2 219.4 221.4 220.7 218.9 216.0 26 Negotiable CDs2 83.5 64.3 75.9 99.5 88.9 84.4 84.0 86.4 89.8 93.3 27 Other time 207.1 222.9 249.0 289.2 314.9 318.3 321.6 327.1 332.7 341.2 28 Other checkable deposits4 .7 1.4 2.1 3.0 3.3 3.3 3.4 3.4 3.4 3.4 29 Nonbank thrift institution deposits 3.. 424.9 492.5 562.3 621.4 644.3 650.3 656.0 657.8 661.4 664.5 30 U.S. government demand deposits (all commercial banks)5 4.1 4.4 5.1 10.2 8.4 10.8 13.2 9.8 12.4 11.7 1. Composition of the money stock measures is as follows: M-4: M-2 plus large negotiable CDs. M-l: Averages of daily figures for (1) demand deposits at commercial M-5: M-3 plus large negotiable CDs. banks other than domestic interbank and U.S. government, less cash items 2. Negotiable time CDs issued in denominations of $100,000 or more in process of collection and Federal Reserve float; (2) foreign demand by large weekly reporting commercial banks. balances at Federal Reserve Banks; and (3) currency outside the Treasury, 3. Average of the beginning- and end-of-month figures for deposits of Federal Reserve Banks, and vaults of commercial banks. mutual savings banks, for savings capital at savings and loan associations, M-l +: M-l plus savings deposits at commercial banks, NOW accounts and for credit union shares. at banks and thrift institutions, credit union share draft accounts, and 4. Includes NOW accounts at thrift institutions, credit union share demand deposits at mutual savings banks. draft accounts, and demand deposits at mutual savings banks. M-2: M-l plus savings deposits, time deposits open account, and time 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. Mar. Apr. May June July Aug. Sept. Oct. Seasonally adjusted 1 Reserves1 34.89 36.10 41.27 40.81 40.65 40.48 40.42 40.82 41.07 41.46 42.32 2 Nonborrowed 34.84 35.53 40.40 39.82 39.73 38.72 39.00 39.65 39.98 40.12 40.30 3 Required 34.61 35.91 41.04 40.66 40.47 40.34 40.20 40.61 40.85 41.27 42.04 4 Monetary base2 118.4 127.8 142.3 143.9 144.5 144.9 145.6 146.9 148.4 150.1 151.7 5 Deposits subject to reserve requirements 3 528.6 568.6 616.7 616.4 618.6 613.9 613.1 618.7 623.7 630.5 639.0 6 Time and savings 354.1 386.7 429.4 434.1 432.0 428.7 425.9 429.4 434.4 439.8 445.6 Demand 7 Private 171.5 178.5 185.1 180.5 184.7 183.5 184.8 187.5 187.1 r189.0 191.7 8 U.S. government 3.0 3.5 2.3 1.8 1.8 1.7 2.4 1.8 2.2 1.8 1.8 Not seasonally adjusted 9 Monetary base2 120.3 129.8 144.6 142.3 144.2 144.4 145.6 147.9 148.4 149.4 151.4 10 Deposits subject to reserve requirements 3 534.8 575.3 624.0 614.3 621.1 610.9 613.9 619.2 620.4 629.0 638.6 11 Time and savings 353.6 386.4 429.6 434.9 432.3 429.8 427.2 429.8 434.1 439.4 445.7 Demand 12 Private 177.9 185.1 191.9 177.5 186.8 179.2 183.9 187.8 184.5 187.5 191.4 13 U.S. government 3.3 3.8 2.5 1.9 2.0 1.8 2.8 1.6 1.7 2.1 1.6 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. Aug.* Sept.* Oct.* Aug.* Sept.* Oct.* Seasonally adjusted Not seasonally adjusted 1 Total loans and securities2 891.1 61,014.3 1,102.8 1,122.8 1,128.9 899.1 61,023.8 1,102.7 1,124.7 1,130.9 2 U.S. Treasury securities 99.5 93.4 94.1 95.2 95.3 100.7 94.6 92.2 93.6 93.2 3 Other securities 159.6 6173.1 185.4 187.6 188.8 160.2 6173.9 185.0 187.6 189.0 4 Total loans and leases2 632.1 6747.8 823.3 840.0 844.8 638.3 6755.4 825.5 843.5 848.7 5 Commercial and industrial loans.. 5211.2 7246.5 279.9 285.9 288.6 5212.6 7248.2 279.6 285.8 288.4 6 Real estate loans 5175.2 210.5 231.3 234.1 237.1 5175.5 210.9 232.0 235.3 238.3 7 Loans to individuals 138.2 164.9 178.8 180.2 181.3 139.0 165.9 180.4 182.4 183.3 8 Security loans 20.6 19.4 2233..00 2233..55 20.6 22.0 20.7 2233..00 2233..66 20.8 9 Loans to nonbank financial institutions 525.8 927.1 29.5 29.8 30.9 526.3 927.6 29.8 30.3 31.0 10 Agricultural loans 25.8 28.2 29.2 29.6 30.0 25.7 28.1 29.8 30.1 30.3 11 Lease financing receivables 5.8 7.4 8.6 8.7 8.9 5.8 7.4 8.6 8.7 8.9 12 All other loans 29.5 643.6 42.6 47.5 47.4 31.5 646.6 42.3 47.2 47.6 MEMO: 13 Total loans and investments plus loans sold2-3 895.9 61,018.1 11,,110066..55 11,,112266..55 1,132.5 903.9 61,027.6 11,,110066..44 11,,112288..44 1,134.5 14 Total loans plus loans sold2-3 636.9 6751.6 827.0 843.7 848.4 643.0 6759.2 829.2 847.2 852.3 15 Total loans sold to affiliates 3 4.8 3.8 3.7 3.7 3.6 4.8 3.8 3.7 3.7 3.6 16 Commercial and industrial loans plus loans sold 3 5213.9 8248.5 228822..66 228888..77 291.2 5215.3 8250.1 228822..44 228888..66 291.1 17 Commercial and industrial loans sold 3 2.7 81.9 2.8 2.8 2.7 2.7 81.9 2.8 2.8 2.7 18 Acceptances held 7.5 6.8 8.0 8.6 8.0 8.6 7.5 7.5 8.0 7.9 19 Other commercial and industrial loans 5203.7 239.7 271.8 277.3 280.6 5203.9 240.9 272.1 277.8 280.5 20 To U.S. addressees4 5193.8 226.6 253.7 258.7 261.2 5193.7 226.5 254.2 259.2 261.4 21 To non-U.S. addressees 59.9 13.1 18.1 18.6 19.5 510.3 14.4 17.9 18.7 19.2 22 Loans to foreign banks 13.5 21.2 20.9 24.0 23.0 14.6 23.0 20.6 23.6 22.5 23 Loans to commercial banks in the United States 54.1 57.3 70.9 75.9 76.4 56.9 60.3 66.4 73.5 74.2 For notes see bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • December 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* AAccccoouunntt Dec. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. DOMESTICALLY CHARTERED COMMERCIAL BANKS1 1 Loans and investments 1,030.4 1,025.2 1,031.4 1,048.3 1,059.4 1,071.3 1,081.8 1,094.3 1,112.1 1,118.4 1,118.3 2 Loans, gross 761.6 755.6 759.8 773.9 785.3 797.9 807.6 819.4 833.8 839.0 837.0 3 Interbank 45.3 42.1 42.3 44.4 45.9 46.3 48.1 50.3 53.6 54.0 52.6 4 Commercial and industrial 221.6 225.3 227.8 233.0 236.4 240.5 242.0 244.1 249.4 249.8 248.1 5 Other 494.7 488.2 489.6 496.5 503.0 511.2 517.4 525.0 530.9 535.3 536.4 6 U.S. Treasury securities 93.1 93.1 93.6 94.2 93.2 91.6 92.1 90.6 91.9 91.5 92.1 7 Other securities 175.7 176.5 178.0 180.2 181.0 181.7 182.1 184.3 186.4 187.8 189.3 8 Cash assets, total 177.3 147.1 135.8 139.9 158.8 146.3 140.2 145.7 148.5 160.7 158.1 9 Currency and coin 15.5 15.0 15.2 15.6 16.0 16.3 16.1 16.8 16.7 16.6 18.2 10 Reserves with Federal Reserve Banks 34.4 29.7 30.0 33.9 32.8 32.6 29.6 33.7 31.6 34.1 34.7 11 Balances with depositary institutions 52.3 42.5 36.8 39.0 44.6 40.8 41.2 41.1 40.7 45.5 43.7 12 Cash items in process of collection... 75.1 59.9 53.7 51.4 65.4 56.5 53.4 54.1 59.5 64.6 61.5 60.9 62.4 58.9 55.8 52.7 55.1 53.9 53.8 57.5 57.8 59.0 14 Total assets/total liabilities and capital. 1,268.6 1,234.8 1,226.1 1,244.0 1,270.9 1,272.7 1,275.9 1,293.8 1,318.2 1,336.9 1,335.4 1,011.3 969.2 954.9 964.4 975.5 971.3 975.2 982.9 996.6 1,023.6 1,017.5 399.2 352.1 335.0 348.0 357.8 352.4 352.6 352.4 358.7 376.6 365.0 612.1 617.1 619.8 616.4 617.8 618.9 622.6 630.5 637.9 647.0 652.5 219.7 215.2 216.8 215.9 215.5 216.4 218.3 216.6 213.4 207.6 205.1 19 Time 392.4 401.9 403.0 400.5 402.3 402.5 404.2 413.8 424.5 439.4 447.4 20 Borrowings 114.6 111.9 115.2 123.5 132.0 137.1 137.2 140.1 147.0 137.4 135.7 21 Other liabilities .•••.•.•. 49.1 59.0 60.9 60.8 65.4 65.5 64.9 69.7 71.2 74.0 78.5 93.6 94.7 95.1 95.3 98.1 98.9 $8.7 101.1 103.3 101.9 103.7 MEMO: 23 U.S. Treasury note balances included in borrowing 12.4 4.0 4.8 5.9 4.9 12.9 11.9 8.6 17.8 8.4 5.0 14,602 14,593 14,597 14,610 14,616 14,620 14,584 14,607 14,616 14,605 14,608 ALL COMMERCIAL BANKING INSTITUTIONS2 25 Loans and investments 1,097.0 1,087.7 1,101.4 1,114.8 1,131.2 1,146.9 1,153.1 1,169.8 1,197.7 1,200.3 825.5 815.6 827.2 837.7 854.2 870.7 876.2 892.1 915.9 917.6 57.6 53.5 56.1 57.3 61.8 60.4 60.6 63.8 69.2 71.6 251.2 255.6 259.8 264.7 268.8 274.6 276.9 280.5 288.1 288.3 29 Other 516.8 506.5 511.3 515.6 523.6 535.7 538.6 547.8 558.6 557.7 94.5 94.3 94.9 95.6 94.6 93.1 93.5 91.9 93.5 93.1 177.0 177.8 179.4 181.5 182.3 183.1 183.5 185.8 188.3 189.5 32 Cash assets, total 196.8 166.8 157.0 156.6 176.5 167.8 160.4 166.0 172.2 179.9 33 Currency and coin 15.5 15.1 15.2 15.6 16.1 16.3 16.1 16.8 16.7 16.6 34 Reserves with Federal Reserve Banks 35.0 30.3 30.7 34.6 33.5 33.4 30.4 34.5 32.5 34.9 35 Balances with depositary institutions 69.9 60.3 56.0 53.9 60.3 60.3 59.3 59.3 62.4 62.5 36 Cash items in process of collection... 76.4 61.3 55.1 52.5 66.6 57.7 54.7 55.3 60.6 65.9 76.0 76.9 74.1 70.8 67.7 71.4 69.7 70.9 76.7 76.5 n. a. 38 Total assets/total liabilities and capital. 1,369.8 1,331.0 1,332.5 1,342.1 1,375.5 1,386.1 1,383.2 1,406.7 1,446.5 1,456.7 39 Deposits 1,049.0 1,002.5 994.0 997.4 1,013.2 1,015.6 1,012.3 1,020.9 1,043.6 1,062.6 418.9 368.1 355.7 362.0 375.8 376.4 369.7 369.1 383.2 394.2 630.0 634.4 638.3 635.4 637.4 639.2 642.5 651.8 660.5 668.4 220.3 215.9 218.0 216.9 216.7 217.2 219.1 217.6 214.2 208.3 409.7 418.4 420.3 418.5 420.7 422.0 423.5 434.2 446.2 460.1 44 Borrowings 144.0 138.0 141.7 150.5 159.5 165.4 165.8 169.5 182.1 171.6 45 Other liabilities 81.4 94.6 99.8 97.1 102.8 104.2 104.4 113.1 115.2 118.5 46 Residual (assets less liabilities) 95.5 96.5 97.1 97.2 100.0 100.9 100.8 103.2 105.6 104.0 MEMO: 47 U.S. Treasury note balances included 12.4 4.0 4.8 5.9 4.9 12.9 11.9 8.6 17.8 8.4 48 Number of banks 14,923 14,926 14,930 14,946 14,954 14,968 14,933 14,960 14,972 14,963 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 556600,,007777 581,143 663366,,331188 672,207 329,971 339,955 372,702 390,630 Investments 4 101,461 100,568 99,333 97,001 55,727 53,345 52,244 50,519 5 Other 147,500 153,042 157,936 163,986 80,191 83,583 86,033 87,886 6 Cash assets 129,562 130,726 159,264 157,393 76,072 74,641 92,050 90,728 7 Total assets/total liabilities l 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 922,657 994455,,887744 446699,,337777 476,381 552200,,116677 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 14,397 14,425 14,397 14,381 4,735 4,701 4,654 4,616 State member (all insured) Insured nonmember 17 Loans and investments, gross 114444,,000000 114444,,559977 115522,,551144 115577,,446644 220077,,008855 221,896 239,265 256,749 Loans 18 102,277 102,117 110,243 115,736 135,766 147,694 162,543 175,894 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 114499,,449911 152,472 116633,,443366 116677,,440033 206,134 218,519 239,053 251,539 Demand 25 429 371 1,241 1,158 917 813 1,896 2,315 26 Interbank 19,295 20,568 22,346 23,117 1,619 1,520 1,849 1,669 27 Other 52,204 52,570 57,605 55,550 69,648 70,615 80,445 81,131 Time and savings 28 2,384 2,134 2,026 2,275 956 988 973 920 29 75,178 76,827 80,216 85,301 132,993 144,581 153,887 165,502 30 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 1144,,665588 16,844 1199,,992244 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 11,,999977 2,152 2,063 2,123 45 7,766 8,392 9,802 11,831 140,760 152,974 163,690 177,334 46 4,842 7,056 6,908 8,413 8,401 11,212 11,293 14,649 47 Total capital accounts 818 893 917 962 18,360 19,812 20,823 22,346 48 275 293 310 317 8,914 8,998 9,039 9,077 1. Includes items not shown separately. For Note see table 1.24. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • December 1979 1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, September 30, 1978 Millions of dollars, except for number of banks Member banks1 Insured Asset account commercial Large banks banks Total All other New York City of Other City Chicago large 1 Cash bank balances, items in process 158,380 134,955 43,758 5,298 47,914 37,986 2 Currency and coin 12,135 8,866 867 180 2,918 4,901 3 Reserves with Federal Reserve Banks 28,043 28,041 3,621 1,152 12,200 11,067 4 Demand balances with banks in United States.. 41,104 25,982 12,821 543 3,672 8,945 5 Other balances with banks in United States 4,648 2,582 601 15 648 1,319 6 Balances with banks in foreign countries 3,295 2,832 331 288 1,507 705 7 Cash items in process of collection 69,156 66,652 25,516 3,119 26,969 11,049 8 Total securities held—Book value 262,199 179,877 20,808 7,918 58,271 92,881 9 U.S. Treasury 95,068 65,764 9,524 2,690 22,051 31,499 10 Other U.S. government agencies 40,078 25,457 1,828 1,284 7,730 14,616 11 States and political subdivisions 121,260 85,125 9,166 3,705 27,423 44,831 12 All other securities 5,698 3,465 291 240 1,048 1,887 13 Unclassified total 94 66 19 47 14 Trading-account securities 6,833 6,681 3,238 708 2,446 290 15 U.S. Treasury 4,125 4,103 2,407 408 1,210 78 16 Other U.S. government agencies 825 816 401 82 278 55 17 States and political subdivisions 1,395 1,381 363 117 794 107 18 All other trading account securities 394 316 67 101 145 3 19 Unclassified 94 66 19 47 20 Bank investment portfolios 255,366 173,196 17,570 7,210 55,825 92,591 21 U.S. Treasury 90,943 61,661 7,117 2,282 20,840 31,422 22 Other U.S. government agencies 39,253 24,641 1,426 1,201 7,452 14,561 23 States and political subdivisions 119,865 83,745 8,803 3,588 26,629 44,724 24 All other portfolio securities 5,305 3,149 224 138 903 1,884 25 Federal Reserve stock and corporate stock 1,656 1,403 311 111 507 475 26 Federal funds sold and securities resale agreement 41,258 31,999 3,290 1,784 16,498 10,427 27 Commercial banks 34,256 25,272 1,987 1,294 12,274 9,717 28 Brokers and dealers 4,259 4,119 821 396 2,361 541 29 Others 2,743 2,608 482 94 1,863 169 30 Other loans, gross 675,915 500,802 79,996 26,172 190,565 204,069 31 LESS: Unearned income on loans 17,019 11,355 675 107 3,765 6,809 32 Reserves for loan loss 7,431 5,894 1,347 341 2,256 1,949 33 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 64 Other 10,047 6,629 249 38 2,678 3,664 65 Other installment loans 22,510 14,902 1,302 119 4,948 8,533 66 Single-payment loans to individuals 30,027 20,406 1,694 851 6,680 11,182 67 All other loans 17,360 14,778 3,545 1,290 6,100 3,844 68 Total loans and securities, net 956,579 696,833 102,383 35,536 259,820 299,094 69 Direct lease financing 6,717 6,212 1,145 96 3,931 1,041 70 Fixed assets—Buildings, furniture, real estate 22,448 16,529 2,332 795 6,268 7,133 71 Investment in unconsolidated subsidiaries 3,255 3,209 1,642 188 1,282 96 72 Customer acceptances outstanding 16,557 16,036 8,315 1,258 6,054 409 73 Other assets 34,559 30,408 11,323 1,000 12,810 5,275 74 Total assets 1,198,495 904,182 170,899 44,170 338,079 351,034 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A19 1.26 Continued Member banks1 Insured Non- Liability or capital account commercial Large banks member banks banks1 Total All other New York City of Other City Chicago large 75 Demand deposits 369,030 282,450 66,035 10,690 100,737 104,988 86,591 76 Mutual savings banks 1,282 1,089 527 1 256 305 194 77 Other individuals, partnerships, and corporations 279,651 205,591 31,422 7,864 79,429 86,876 74,061 78 U.S. government 7,942 5,720 569 188 1,987 2,977 2,222 79 States and political subdivisions 17,122 11,577 764 252 3,446 7,116 5,545 80 Foreign governments, central banks, etc 1,805 1,728 1,436 19 211 62 77 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 79 66 0 0 1 65 13 86 Mutual savings banks 399 392 177 40 148 27 7 87 Other individuals, partnerships, and corporations 292,120 210,439 29,209 12,074 76,333 92,824 81,680 88 U.S. government 864 689 61 40 356 232 175 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 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 9911,,998811 85,582 21,149 8,777 41,799 13,857 6,398 101 Commercial banks 42,174 39,607 6,991 5,235 21,609 5,773 2,566 12,787 11,849 2,130 1,616 6,381 1,722 939 103 Others 37,020 34,126 12,028 1,926 13,809 6,362 2,894 8,738 8,352 3,631 306 3,191 1,225 386 1,767 1,455 234 27 701 491 316 16,661 16,140 8,398 1,260 6,070 412 521 107 Other liabilities 27,124 23,883 8,860 1,525 9,020 4,477 3,494 108 Total liabilities 1,107,188 836,607 157,026 41,144 314,868 323,569 270,849 109 Subordinated notes and debentures 5,767 4,401 1,001 79 2,033 1,287 1,366 110 Equity capital 85,540 63,174 12,871 2,947 21,177 26,178 22,380 Ill Preferred stock 88 36 0 0 5 31 52 17,875 12,816 2,645 570 4,007 5,594 5,064 113 Surplus 32,341 23,127 4,541 1,404 8,148 9,034 9,217 114 Undivided profits 33,517 26,013 5,554 921 8,680 10,858 7,509 1,719 1,182 132 52 337 661 538 116 Total liabilities and equity capital 1,198,495 904,182 170,899 44,170 338,079 351,034 294,595 MEMO: 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 3366,,229933 21,379 119 Federal funds sold and securities purchased under agree- 43,873 33,682 4,272 1,887 16,007 11,517 10,307 120 Total loans 651,874 483,316 76,750 25,722 184,790 196,054 168,558 121 Time deposits of $100,000 or more 183,614 150,160 32,196 13,216 65,776 38,972 33,454 122 Total deposits 944,593 668877,,554433 110077,,002288 2288,,992222 225500,,880044 330000,,778899 225577,,006622 123 Federal funds purchased and securities sold under agree- 92,685 86,635 22,896 9,473 40,541 13,725 6,053 8,716 8,326 3,679 370 3,211 1,067 390 125 Standby letters of credit outstanding 18,820 17,658 10,063 1,477 4,820 1,297 1,162 126 Time deposits of $100,p00 or more 186,837 152,553 32,654 13,486 66,684 39,728 34,284 160,227 129,667 27,950 11,590 56,383 33,743 30,560 128 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 • December 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 AAccccoouunntt Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 3If Nov. 1p Nov. 14f Nov. 21 p Nov. 28p 1 Cash items in process of collection 54,654 56,500 54,960 47,021 52,006 52,595 5588,,669988 5544,,005588 5500,,555522 2 Demand deposits due from banks in the United States 16,903 17,938 1188,,002266 16,026 1177,,665511 1188,,778899 1188,,338899 1155,,776688 1177,,990055 3 All other cash and due from depositary institutions 28,503 32,949 36,264 31,936 33,188 29,470 31,558 31,708 34,726 4 Total loans and securities 506,942 508,928 502,765 498,431 503,105 503,197 506,552 501,110 500,811 Securities 5 U.S. Treasury securities 34,196 35,966 35,644 35,160 35,281 34,691 35,916 35,559 35,782 6 Trading account 4,016 5,169 4,935 4,468 4,770 4,262 5,452 5,121 5,234 7 Investment account, by maturity 30,180 30,798 30,709 30,691 30,511 30,429 30,464 30,438 30,549 8 One year or less 7,839 8,121 8,033 8,001 8,084 8,181 8,283 8,037 8,102 9 Over one through five years 18,059 18,381 18,350 18,378 18,102 17,965 17,894 17,898 17,953 10 Over five years 4,281 4,296 4,326 4,312 4,325 4,284 4,286 4,503 4,494 11 Other securities 71,161 70,812 70,867 70,717 70,817 70,458 70,766 70,422 70,574 12 Trading account 4,761 4,337 4,143 3,911 3,744 3,625 3,734 3,439 3,419 13 Investment account 66,400 66,475 66,724 66,805 67,073 66,832 67,032 66,983 67,154 14 U.S. government agencies 15,067 15,116 15,344 15,263 15,341 15,235 15,410 15,347 15,454 15 States and political subdivision, by maturity. 48,667 48,709 48,712 48,872 49,070 48,948 48,942 48,983 49,053 16 One year or less 6,538 6,514 6,408 6,462 6,690 6,698 6,453 6,640 6,476 17 Over one year 42,129 42,195 42,304 42,410 42,380 42,250 42,489 42,343 42,576 18 Other bonds, corporate stocks and securities 2,666 2,649 2,668 2,671 2,661 2,649 2,680 2,653 2,648 Loans 19 Federal funds sold i 31,807 30,952 26,074 2244,,119966 25,270 27,190 28,568 24,744 24,202 20 To commercial banks 19,614 21,191 17,637 16,534 17,983 19,600 20,836 17,862 17,668 21 To nonbank brokers and dealers in securities. 7,959 6,908 5,876 5,168 5,039 5,272 5,257 4,909 4,626 22 To others 4,233 2,852 2,561 2,494 2,248 2,317 2,475 1,973 1,909 23 Other loans, gross 381,483 382,985 382,019 380,260 383,665 382,867 383,368 382,519 382,377 24 Commercial and industrial 115522,,551155 152,938 151,323 151,730 115522,,774499 152,676 115522,,112277 115511,,996677 151,006 25 Bankers' acceptances and commercial paper 3,954 44,,002277 3,410 3,105 3,935 3,840 3,801 3,918 3,750 26 All other 148,562 148,911 147,913 148,624 148,814 148,836 148,326 148,050 147,256 27 U.S. addresses 141,989 142,190 141,187 141,783 142,190 142,182 141,584 141,452 140,688 28 Non-U.S. addressees 6,573 6,721 6,726 6,841 6,624 6,654 6,742 6,598 6,568 29 Real estate 94,128 94,483 95,037 95,470 95,948 96,277 96,562 96,890 97,236 30 To individuals for personal expenditures 69,140 69,240 69,392 69,567 70,161 70,099 7700,,220033 7700,,333399 70,555 To financial institutions 31 Commercial banks in the United States 3,618 3,284 3,183 3,288 3,783 3,557 3,193 3,292 3,259 32 Banks in foreign countries 7,308 7,729 7,483 7,074 66,,880077 7,062 77,,447777 77,,002288 66,,664455 33 Sales finance, personal finance companies, etc 9,367 9,790 9,521 9,572 9,584 9,390 9,356 9,329 9,402 34 Other financial institutions 16,588 16,808 16,477 16,524 16,908 16,889 16,780 16,619 16,651 35 To nonbank brokers and dealers in securities. 88,,663366 88,,448833 9,265 7,208 77,,228844 6,756 77,,331166 66,,996677 77,,335544 36 To others for purchasing and carrying securities 2 2,508 2,536 2,508 2,475 2,526 2,491 2,493 2,502 2,528 37 To finance agricultural production 5,032 5,021 4,987 4,941 4,930 4,938 4,930 4,892 4,910 38 All other 12,644 12,674 12,843 12,412 12,984 12,732 12,931 12,694 12,831 39 6,718 6,777 6,809 6,846 6,828 6,868 6,920 6,965 6,955 40 Loan loss reserve 4,988 5,011 5,030 5,055 5,100 5,140 5,147 5,169 5,169 41 Other loans, net 369,777 371,197 370,180 368,358 371,737 370,858 371,301 370,384 370,253 42 Lease financing receivables 7,308 7,335 7,355 7,379 7,405 7,480 7,516 7,531 7,544 43 All other assets 59,088 57,754 57,195 57,533 59,268 58,951 59,950 58,875 59,880 673,398 681,403 676,565 658,326 672,624 670,481 682,663 669,051 671,418 Deposits 45 Demand deposits 196,821 199,308 193,740 178,840 191,305 194,538 200,192 188,105 185,092 46 Mutual savings banks 809 828 733 646 779 802 780 685 613 47 Individuals, partnerships, and corporations.. 135,724 138,029 134,648 126,797 134,690 133,427 140,382 133,102 130,593 48 States and political subdivisions 4,507 4,610 4,630 4,332 5,089 4,635 4,594 4,888 -4,607 49 U.S. government 2,824 1,236 939 727 1,306 760 876 926 712 50 Commercial banks in the United States 33,620 35,523 34,720 30,529 32,840 37,897 36,026 31,274 30,612 51 Banks in foreign countries 8,268 8,628 8,067 6,581 7,279 7,461 8,074 7,816 7,740 52 Foreign governments and official institutions. 1,512 1,223 1,581 1,339 991 1,293 1,820 1,760 2,239 53 Certified and officers' checks 9,556 9,231 8,422 7,890 8,330 8,262 7,639 7,655 7,976 54 Time and savings deposits 258,406 259,111 260,126 260,453 261,561 261,578 262,518 264,098 264,662 55 Savings 76,781 76,557 76,036 75,295 74,028 73,770 73,236 73,035 72,559 56 Individuals and nonprofit organizations 71,844 71,597 71,165 70,487 6699,,334411 69,107 68,611 68,484 68,002 57 Partnerships and corporations operated for profit 4,124 44,,114422 44,,006655 44,,006655 3,976 3,942 3,889 3,835 3,870 58 Domestic governmental units 789 797 783 724 689 702 708 690 662 59 All other 24 20 23 19 22 18 27 26 25 60 Time 181,624 182,553 184,090 185,158 187,533 187,808 189,282 191,063 192,103 61 Individuals, partnerships, and corporations 149,213 149,902 151,314 152,232 154,654 155,084 156,440 158,092 158,937 62 States and political subdivisions 21,880 22,137 22,255 22,384 22,218 22,189 22,165 22,209 22,248 63 U.S. government 477 476 488 476 464 478 509 498 494 64 Commercial banks in the United States 55,,003388 5,019 5,004 5,155 55,,330055 5,273 5,309 5,385 5,498 65 Foreign governments, official institutions, and banks 5,016 5,019 5,028 4,910 4,891 4,785 4,859 4,879 4,927 66 Federal funds purchased 3 94,380 100,765 96,406 91,348 9933,,775533 93,870 97,837 92,638 91,154 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks 677 190 3,746 3,118 1,631 262 673 1,449 3,740 68 Treasury tax-and-loan notes 4,275 5,354 4,062 5,985 4,865 384 1,287 2,599 2,519 69 All other liabilities for borrowed money 1155,,663322 1144,,884422 14,742 14,182 1122,,990044 14,091 13,507 1133,,442222 1144,,777733 70 Other liabilities and subordinated note and debentures 58,790 57,195 59,218 59,788 61,652 60,878 61,746 61,986 64,686 71 Total liabilities 628,981 636,766 632,040 613,715 627,670 625,602 637,762 624,297 626,627 72 Residual (total assets minus total liabilities) .. 44,417 44,638 44,525 44,612 44,954 44,879 44,902 44,753 44,791 1. Includes securities purchased under agreements to resell. 4. This is not a measure of equity capital for use in capital adequacy 2. Other than financial institutions and brokers and dealers. analysis or for other analytic uses. 3. Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A21 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of 51 Billion or More on December 31, 1977 Assets and Liabilities Millions of dollars, Wednesday figures 1979 AAccccoouunntt Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31*> Nov. Nov. 14? Nov. 21 p Nov. 2Sp ! Cash items in process of collection 52,242 53,681 52,567 44,848 49,627 5500,,334444 5555,,773344 5511,,446644 4488,,333355 2 Demand deposits due from banks in the United States 16,048 17,005 17,258 15,372 1166,,888822 1177,,884499 1177,,550077 1144,,995522 1177,,220022 3 All other cash and due from depositary institutions 26,810 31,370 34,546 30,233 31,458 27,952 29,788 30,153 32,757 4 Total loans and securities 474,521 476,568 470,436 466,252 470,995 470,776 474,285 468,644 468,787 Securities 5 U.S. Treasury securities 3311,,883388 3333,,661188 3333,,228888 32,854 33,020 32,441 33,656 33,262 33,478 6 Trading account 3,968 5,128 4,878 4,430 4,717 4,221 5,409 5,080 5,194 7 Investment account, by maturity 27,870 28,490 28,410 28,424 28,303 28,221 28,247 28,183 28,284 8 One year or less 7,304 7,591 7,509 7,499 7,603 7,695 7,806 7,512 7,571 9 Over one through five years 16,580 16,906 16,876 16,918 16,672 16,540 16,453 16,470 16,522 10 Over five years 3,987 3,993 4,024 4,008 4,028 3,986 3,988 4,200 4,190 11 65,893 65,550 65,600 65,425 65,496 65,160 65,429 65,070 65,204 12 Trading account 4,676 4,257 4,069 3,840 3,659 3,557 3,648 3,342 3,316 13 Investment account 61,218 61,293 61,531 61,586 61,837 61,602 61,781 61,729 61,888 14 U.S. government agencies 14,043 14,094 14,312 14,231 14,295 14,191 14,347 14,287 14,385 15 States and political subdivision, by maturity. 44,671 44,712 44,714 44,847 45,045 44,926 44,918 44,950 45,012 16 One year or less 5,938 5,916 5,831 5,870 6,102 6,115 5,873 6,065 5,901 17 Over one year 38,733 38,796 38,883 38,977 38,944 38,812 39,045 38,884 39,112 18 Other bonds, corporate stocks and securities 2,503 2,486 2,505 2,508 2,496 2,484 2,516 2,492 2,491 Loans 19 Federal funds sold1 29,278 2288,,446644 23,638 21,873 23,049 24,599 26,089 22,158 22,064 20 To commercial banks 17,657 19,175 15,641 14,687 16,089 17,394 18,797 15,776 15,934 21 To nonbank brokers and dealers in securities. 7,479 6,505 5,504 4,760 4,769 4,956 4,877 4,566 4,284 22 To others 4,142 2,785 2,493 2,426 2,190 2,250 2,415 1,817 1,846 23 Other loans, gross 358,382 359,887 358,907 357,155 360,512 359,738 360,327 359,434 359,313 24 Commercial and industrial 144,910 145,360 143,736 144,182 145,224 145,145 114444,,663322 114444,,447755 114433,,556622 25 Bankers' acceptances and commercial 3,850 3,928 3,316 3,015 3,849 3,759 3,724 3,842 3,674 26 All other 141,060 141,432 140,419 141,167 141,375 141,386 140,908 140,633 139,888 27 U.S. addresses 134.531 134,762 133,737 134,371 134,797 134,778 134,212 134,080 133,369 28 Non-U.S. addressees 6,529 6,670 6,682 6,796 6,578 6,608 6,696 6,553 6,519 29 88,486 88,832 89.377 89,813 90,273 90,616 90,893 91,205 91,548 30 To individuals for personal expenditures 61,219 61,315 61;442 61,597 62,118 62,066 62,186 62,288 62,475 To financial institutions 31 Commercial banks in the United States 3,547 33,,220088 33,,111155 33,,221144 33,,771177 3,478 3,129 3,214 3,194 32 Banks in foreign countries 7,249 7,660 7,426 6,994 6,729 6,994 7,389 6,962 6,579 33 Sales finance, personal finance companies, etc 9,168 99,,559922 99,,332200 99,,337744 99,,339999 99,,221111 99,,116644 9,148 9,208 34 Other financial institutions 16,101 16,317 16,013 16,065 16,436 16,428 16,328 16,158 16,190 35 To nonbank brokers and dealers in securities. 8,522 8,388 9,169 7,112 7,179 6,662 7,224 6,879 7,279 36 To others for purchasing and carrying 2,297 22,,332222 2,290 22,,225599 2,305 2,267 2,276 2,279 2,304 37 To finance agricultural production 4,855 4,845 4,811 4,765 4,761 4,768 4,765 4,726 4,742 38 All other 12,027 12,047 12,208 11,780 12,371 12,102 12,339 12,099 12,231 6,153 6,209 6,235 6,269 6,256 6,295 6,345 6.387 6,380 40 4,718 4,742 4,761 4,786 4,826 4,866 4,871 4,894 4,891 41 347,511 348,936 347.911 346,099 349,431 348,576 349,111 348,153 348,042 42 Lease financing receivables 7,115 7,143 7,161 7,184 7,208 7,283 7,317 7,329 7,340 43 All other assets 57,558 56,136 55,644 55,964 57,636 57,321 58,338 57,290 58,266 634,293 641,903 637,612 619,853 633,806 631,527 642,969 629,832 632,688 Deposits 185,251 187,487 182,131 167,950 179,865 183,282 188,263 176,738 174,126 46 Mutual savings banks 773 794 705 619 744 763 748 660 587 47 Individuals, partnerships, and corporations.. 126,764 128,862 125,551 118,266 125,678 124,699 131,020 124,181 121,854 48 States and political subdivisions 3,991 4,024 4,032 3,682 4,570 4,100 4,074 4,274 4,059 49 U.S. government 2,624 1,141 832 671 1,208 687 807 845 645 50 Commercial banks in the United States 32,130 33,943 33,368 29,246 31,424 36,413 34,468 29,854 29,336 51 Banks in foreign countries 8,217 8,571 7,972 6,524 7,228 7,391 8,006 7,763 7,679 52 Foreign governments and official institutions. 1,512 1,222 1,548 1,338 989 1,263 1,800 1,757 2,232 53 Certified and officers' checks 9,241 8,930 8,123 7,602 8,023 7,965 7,339 7,403 7,735 54 Time and savings deposits 240,750 241,432 242,444 242,866 243,946 243,923 244,818 246,251 246,834 55 71,301 71,108 70,623 69,932 68,758 68,517 68,018 67,832 67,384 56 Individuals and nonprofit organizations 66,742 66,524 66,121 65,492 64,430 64,195 63,745 63,625 63,177 57 Partnerships and corporations operated for 3,820 3,833 3,760 3,763 3,681 3,654 3,604 3,550 3,581 58 Domestic governmental units 717 732 720 660 626 651 642 631 601 59 22 19 21 17 21 18 27 26 25 60 169,448 170,323 171,821 172,934 175,187 175,406 176,800 178,418 179,450 61 Individuals, partnerships, and corporations 139,282 139,911 141,264 142,205 144,509 144,900 146,176 147,738 148,554 62 States and political subdivisions 19,881 20,141 20,277 20,431 20,263 20,216 20,210 20,192 20,263 63 U.S. government 470 469 481 470 457 470 502 491 487 64 Commercial banks in the United States 4,806 4,791 4,776 4,924 5,072 5,039 5,057 5,122 5,223 65 Foreign governments, official institutions, 5,008 55,,001122 5,023 44,,990055 4,885 4,780 4,855 4,874 4,922 89,345 95,502 91,567 86,361 88,899 88,420 92,378 87,471 85,981 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks 670 182 3,638 22,,993322 1,410 218 651 1,360 3,581 68 3,963 4,980 3,750 5,532 4,508 348 1,181 2,445 2,365 69 All other liabilities for borrowed money 1155,,114444 14,487 14,363 13,862 12,629 13,687 13,130 12,992 1144,,442299 70 Other liabilities and subordinated note and 57,567 56,003 57,993 58,538 60,394 59,589 60,489 60,668 63,404 71 Total liabilities 592,690 600,074 595,886 578,042 591,650 589,468 600,911 587,927 590,720 72 Residual (total assets minus total liabilities).. 41,603 41,829 41,725 41,812 42,156 42,060 42,058 41,905 41,968 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 • December 1979 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1979 AAccccoouunntt Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31* Nov. 7* Nov. 14* Nov. 21* Nov. 28* 1 Cash items in process of collection 19,732 20,210 20,563 16,652 18,045 20,448 19,713 17,388 18,015 2 Demand deposits due from banks in the United States 11,253 11,737 12,451 10,852 11,847 13,037 11,922 10,372 11,795 3 All other cash and due from depositary institutions 5,476 8,435 10,533 6,172 8,997 6,065 9,961 7,117 6,469 4 Total loans and securities1 109,605 108,838 108,546 106,673 108,327 109,360 108,618 108,034 109,022 Securities 7 Investment account, by maturity 6,004 6,303 6,299 6,311 6,314 6,300 6,218 6,292 6,167 8 One year or less 1,064 1,309 1,310 1,324 1,343 1,348 1,348 1,333 1,276 9 Over one through five years 4,376 4,427 4,411 4,409 4,385 4,376 4,294 4,271 4,240 10 Over five years 563 567 578 578 586 576 576 688 651 11 Other securities2 12 Trading account2 13 Investment account iiii,,774422 11,753 1111,,996622 1111,,995599 11,939 11,899 12,011 1122,,003344 1122,,113377 14 U.S. government agencies 22,,114466 2,155 22,,337744 22,,337711 2,356 2,356 2,479 22,,447788 22,,554444 15 States and political subdivision, by maturity. 99,,004411 9,050 99,,004411 99,,003377 9,028 8,990 8,954 88,,999999 99,,003355 16 One year or less 11,,440099 1,405 11,,338844 11,,338866 1,400 1,411 1,407 11,,447700 11,,444422 17 Over one year 77,,663322 7,645 77,,665577 77,,665500 7,628 7,579 7,546 77,,552299 77..559922 18 Other bonds, corporate stocks and securities 555555 548 554477 555511 555 553 578 555577 555588 Loans 19 Federal funds sold 3 77,,997777 6,777 55,,776622 55,,775555 5,749 7,183 5,533 55,,445566 77,,220088 20 To commercial banks 44..332233 3,044 22,,445522 33,,115566 3,198 4,625 3,198 33,,449988 55,,119922 21 To nonbank brokers and dealers in securities. 22,,447711 2,822 22,,448866 11,,884488 1,823 1.761 1,646 11,,332277 11,,337722 22 To others 11,,118833 911 882244 775511 728 796 690 663311 664444 23 Other loans, gross 8866,,336622 86,495 8877,,001144 8855,,114466 86,850 86,532 87,445 8866,,886644 8866,,112277 24 Commercial and industrial 4455,,445566 45,608 4444,,994477 4444,,996699 45,383 45,392 45,541 4455,,331155 4444,,779900 25 Bankers' acceptances and commercial paper 11,,226644 1,327 992233 882200 1,228 1,195 1,371 11,,553311 11,,443377 26 All other 4444,,119922 44,282 4444,,002244 4444,,114488 44,155 44,197 44,170 4433,,778844 4433..335533 27 U.S. addressees 4422,,009900 42,067 4411,,779922 4411,,888899 42,025 42,027 41,924 4411,,665533 4411,,223322 28 Non-U.S. addressees 22,,110011 2,215 22,,223322 22,,225599 2,130 2,169 2,245 22,,113322 22,,112211 29 Real estate 1111,,888811 11,840 1111,,992266 1111,,994499 12,062 12,073 12,072 1122,,112200 1122,,114411 30 To individuals for personal expenditures 88,,000055 8,029 88,,004499 88,,005522 8,100 8,098 8,118 88,,114444 88,,116666 To financial institutions 31 Commercial banks in the United States 11,,448866 1,191 11,,115577 11,,224477 1,695 1,313 1,289 11,,441144 11,,442222 32 Banks in foreign countries 33,,337700 3,762 33,,551188 33,,116633 3,010 3,245 3,533 33,,331199 22,,883399 33 Sales finance, personal finance companies, etc 33,,335566 3,583 33,,441188 33,,444499 3,574 3,485 3,542 33,,447788 33,,555500 34 Other financial institutions 44,,888866 4,866 44,,887755 44,,889944 5,058 5,108 5,052 44,,999933 55,,001122 35 To nonbank brokers and dealers in securities. 44,,449900 4,133 55,,333300 33,,995533 4,180 4,120 4,342 44,,228877 44,,338866 36 To others for purchasing and carrying securities4 446688 458 445577 443388 444 430 426 442222 442266 37 To finance agricultural production 225511 243 223377 224466 249 262 278 226666 227744 38 Allother 22,,771122 2,782 33,,009988 22,,778855 3,097 3,007 3,252 33,,110077 33,,111199 39 LESS: Unearned income 992211 929 992211 992288 938 950 971 998855 999944 40 Loan loss reserve 11,,555588 1,560 11,,556699 11,,557722 1,587 1,603 1,619 11,,662266 11,,662222 41 Other loans, net 8833,,888822 84,005 8844,,552233 8822,,664477 84,325 83,978 84,856 8844,,225522 8833,,551111 42 Lease financing receivables 11,,442200 1,422 11,,442200 11,,442244 1,424 1,425 1,421 11,,442266 11,,442266 43 All other assets 5 2277,,336600 27,379 2266,,443366 2266,,774488 28,588 27,928 29,237 2277,,880022 2277,,664488 44 Total assets 117744,,884466 178,022 117799,,995500 116688,,552200 177,228 178,263 180,872 117722,,114400 117744,,337755 Deposits 45 Demand deposits 6633,,773300 64,047 6633,,886655 5566,,221199 61,697 66,715 64,284 5588,,667777 5588,,999944 46 Mutual savings banks 440099 471 338833 334400 394 431 402 335500 228888 47 Individuals, partnerships, and corporations... 3311,,779900 32,238 3300,,669933 2288,,110000 31,885 32,137 33,166 3300,,227744 2299,,886688 48 States and political subdivisions 444433 429 448899 339977 434 385 436 555577 440033 49 U.S. government 663399 165 117722 114400 229 144 115 111199 8844 50 Commercial banks in the United States 1188,,665588 18,932 2200,,442244 1177,,880011 18,776 23,199 19,533 1166,,991133 1177,,224422 51 Banks in foreign countries 66,,220055 6,494 66,,220088 44,,770088 5,426 5,622 6,050 55,,990066 55,,883300 52 Foreign governments and official institutions. 11,,114444 914 11,,224444 887788 723 953 1,446 999922 11,,445577 53 Certified and officers' checks 44,,444411 4.403 44,,225500 33,,885544 3,830 3,844 3,137 33,,556666 33,,882211 54 Time and savings deposits 4422,,443366 42,720 4422,,775511 4422,,225544 42,903 42,991 43,295 4444,,004499 4444,,338833 99,,990033 9,889 99,,880022 99,,669933 9,511 9,546 9,472 99,,443300 99,,338855 56 Individuals and nonprofit organizations 99..332244 9,307 99,,221199 99,,114411 8,993 9,034 8,967 88,,993388 88,,889900 57 Partnerships and corporations operated for profit 338877 385 337733 336655 358 352 348 334444 334488 58 Domestic governmental units 118800 188 119977 117788 149 150 140 113344 113322 59 Allother 1133 9 1122 88 11 9 17 1133 1155 60 Time 3322,,553333 32,831 3322,,995500 3322,,556600 33,391 33,445 33,823 3344,,661199 3344,,999988 61 Individuals, partnerships, and corporations. 2266,,771155 26,971 2277,,005500 2266,,667788 27,391 27,537 27,795 2288,,557777 2288,,885522 62 States and political subdivisions 11,,556644 1,636 11,,666644 11,,771133 1,772 1.762 1,748 11,,773344 11,,772233 63 U.S. government 4400 48 5511 5500 48 49 47 4422 4422 64 Commercial banks in the United States 11,,443344 1,418 11,,443377 11,,445577 1,511 1,470 1,488 11,,449955 11..559933 65 Foreign governments, official institutions, and banks 22,,778800 2,757 22,,774488 22,,666633 2,670 2,628 2,746 22,,777700 22,,778888 66 Federal funds purchased 2255,,442266 28,729 2266,,882277 2244,,445566 27,983 26,712 30,572 2266,,336622 2244..335544 Other liabilities for borrowed money 67 Borrowings from Federal Reserve Banks..... 339944 22,,339900 557788 229933 11,,225522 68 Treasury tax-and-loan notes 665566 990 778866 11,,117777 942 4 332 662266 558800 69 All other liabilities for borrowed money 77,,332222 7,258 66,,996600 77,,335566 6,390 5,896 5,932 66,,444422 66,,880077 70 Other liabilities and subordinated note and debentures 2211,,224433 20,582 2222,,776699 2222,,887777 23,571 22,227 22,665 2211,,997722 2244,,332266 71 Total liabilities 116611,,220088 164,327 116666,,334499 115544,,991166 163,485 164,546 167,082 115588,,442211 116600,,669966 72 Residual (total assets minus total liabilities)?.. 1133,,663388 13,694 1133,,660011 1133,,660033 13,743 13,717 13,790 1133,,771199 1133,,668800 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 Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31p Nov. 7» Nov. 14p Nov. 21 p Nov. 28P BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and investments adjusted1... 495,415 496,240 493,783 490,510 493,266 492,048 494,591 492,091 492,009 2 Total loans (gross) adjusted 1 390,058 389,462 387,272 384,633 387,169 386,899 387,908 386,109 385,653 3 Demand deposits adjusted2 105,723 106,050 103,121 100,563 105,152 103,286 104,592 101,847 103,216 4 Time deposits in accounts of $100,000 or more. 123,245 123,916 125,153 125,706 126,344 126,590 127,714 129,155 129,713 5 Negotiable CDs 88,401 88,799 89,692 90,102 90,664 90,575 91,381 92,864 93,365 6 Other time deposits 34,844 35,118 35,461 35,603 35,680 36,015 36,333 36,291 36,347 7 Loans sold outright to affiliates 3 3,606 3,600 3,589 3,570 3,633 3,671 3,660 3,576 3,602 8 Commercial and industrial 2,685 2,681 2,653 2,623 2,648 2,683 2,618 2,525 2,535 9 Other 922 919 936 947 985 988 1,042 1,051 1,067 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and investments adjusted1... 464,188 465,136 462,676 459,407 462,271 461,066 463,575 460,936 460,930 11 Total loans (gross) adjusted1 366,456 365,968 363,789 361,127 363,755 363,465 364,489 362,603 362,248 12 Demand deposits adjusted2 98,256 98,721 95,364 93,184 97,605 95,837 97,254 94,575 95,810 13 Time deposits in accounts of $100,000 or more. 115,361 116,015 117,228 117,868 118,489 118,726 119,788 121,090 121,657 14 Negotiable CDs 82,450 82,816 83,710 84,198 84,758 84,686 85,430 86,820 87,333 15 Other time deposits 32,910 33,199 33,518 33,669 33,731 34,040 34,357 34,270 34,324 16 Loans sold outright to affiliates 3 3,556 3,549 3,536 3,506 3,576 3,603 3,593 3,509 3,534 17 Commercial and industrial 2,664 2,659 2,631 2,590 2,621 2,650 2,586 2,494 2,503 18 Other 892 889 906 916 955 952 1,007 1,015 1,031 BANKS IN NEW YORK CITY 19 Total loans (gross) and investments adjusted1'4. 106,275 107,093 107,428 104,769 105,960 105,976 106,721 105,735 105,024 20 Total loans (gross) adjusted1 88,530 89,037 89,167 86,498 87,707 87,777 88,492 87,408 86,720 21 Demand deposits adjusted2 24,702 24,739 22,705 21,626 24,647 22,924 24,923 24,257 23,653 22 Time deposits in accounts of $100,000 or more. 26,065 26,309 26,402 26,053 26,714 26,702 26,955 27,718 28,022 23 Negotiable CDs 18,447 18,566 18,609 18,227 18,810 18,857 19,050 19,807 20,110 24 Other time deposits 7,618 7,743 7,793 7,826 7,904 7,845 7,904 7,911 7,912 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. NOTES TO TABLE 1.311. 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. 3. Other borrowings are borrowings on any instrument, such as a 8. Includes U.S. Treasury demand deposits and Treasury tax and loan promissory note or due bill, given for the purpose of borrowing money notes at commercial banks. Averages of daily data. for the banking business. This includes borrowings from Federal Reserve 9. Averages of Wednesday figures. Banks and from foreign banks, term federal funds, overdrawn due from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • December 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 July 25 Aug. 29 Sept. 26 Oct. 31 Nov. 28v Q2 Q3 Sept. Oct. Nov.f 1 Durable goods manufacturing 21,521 21,703 23,594 23,465 22,857 1,323 2,689 1,891 -128 -608 2 Nondurable goods manufacturing... 17,612 18,441 18,907 19,124 18,379 -89 1,504 466 218 -745 3 Food, liquor, and tobacco 4,348 4,598 4,906 5,024 4,968 -440 535 308 118 -57 4 Textiles, apparel, and leather 4,860 5,090 5,029 4,849 4,608 495 328 -62 -180 -241 5 Petroleum refining 1,929 1,841 1,972 2,182 1,873 -310 6 131 210 -309 6 Chemicals and rubber 3,437 3,641 3,627 3,810 3,749 -63 179 -14 183 -61 7 Other nondurable goods 3,038 3,270 3,372 3,259 3,182 230 456 102 -114 -77 8 Mining (including crude petroleum and natural gas) 11,221 11,442 11,681 11,697 11,502 858 673 240 16 -195 9 Trade 25,029 24,396 24,662 25,417 25,078 1,493 686 266 754 -338 10 Commodity dealers 2,100 1,675 1,859 2,191 1,861 25 -58 184 332 -330 11 Other wholesale 12,075 12,038 11,940 12,170 11,902 777 199 -98 229 -268 12 Retail 10,854 10,683 10,863 11,056 11,316 692 544 180 193 260 13 Transportation, communication, and other public utilities 15,396 15,788 16,761 16,885 17,212 1,256 1,436 972 124 327 14 Transportation 6,495 6,691 6,834 7,065 7,075 180 382 143 231 10 15 Communication 2,106 2,139 2,325 2,404 2,475 199 274 186 80 70 16 Other public utilities 6,794 6,959 7,602 7,416 7,662 877 779 643 -187 247 17 Construction 5,861 5,805 5,891 5,687 5,692 210 308 86 -205 6 18 Services 17,822 18,082 18,359 18,782 18,926 1,177 1,109 277 423 144 19 All other i 13,925 14,193 13,720 13,739 13,720 868 -1,320 -473 19 -19 20 Total domestic loans 128,387 129,851 133,575 134,797 133,369 7,098 7,085 3,724 1,221 -1,428 21 MEMO: Term loans (original maturity more than 1 year) included in domestic loans 63,586 65,293 67,226 68,708 69,416 3,725 2,987 1,933 1,482 707 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 Mar. Apr. May June July Aug. Sept. Oct. Total nondeposit funds 1 Seasonally adjusted 2 54.6 C61.8 84.9 100.8 104.9 111.2 115.8 119.5 130.3 131.4 130.4 2 Not seasonally adjusted 53.3 <60.4 83.9 98.5 102.6 113.4 115.6 122.2 131.9 131.6 131.1 Federal funds, RPs, and other borrowings from nonbanks 3 3 Seasonally adjusted 3 47.1 58.4 74.8 81.0 82.3 84.3 84.5 86.6 92.9 91.3 91.9 45.8 57.0 73.8 78.7 80.1 86.5 84.3 89.3 94.5 91.5 92.6 5 Net Eurodollar borrowings, not seasonally adjusted. 3.7 -1.3 6.8 16.3 18.9 23.2 27.5 29.1 33.8 36.4 35.0 6 Loans sold to affiliates, not seasonally adjusted*.... 3.8 4.8 3.8 3.5 3.6 3.7 3.8' 3.7 3.7 3.7 3.6 MEMO 7 Domestic chartered banks net positions with own foreign branches, not seasonally adjusted5 -6.0 -12.5 c —10.2 -4.5 -1.9 2.6 5.8 6.3 8.9 11.0 9.7 8 Gross due from balances 12.8 21.1 c24.9 22.5 21.6 19.7 20.0 20.1 19.2 21.4 21.9 9 Gross due to balances 6.8 8.6 c14.7 18.0 19.7 22.3 25.7 26.3 28.1 32.5 32.5 10 Foreign-related institutions net positions with directly related institutions, not seasonally adjusted6 9.7 11.1 17.0 20.8 20.8 20.6 21.7 22.8 24.9 25.4 25.3 11 Gross due from balances 8.3 10.3 14.2 15.3 15.7 15.9 17.6 17.6 16.2 18.1 20.5 12 Gross due to balances 18.1 21.4 31.2 36.0 36.5 36.5 39.3 40.4 41.0 43.5 45.7 13 Security RP borrowings, seasonally adjusted 7 27.9 36.3 43.8 42.7 43.0 42.2 45.0 42.8 40.9 42.8 44.6 14 Not seasonally adjusted 27.0 35.1 42.4 42.2 42.5 44.8 44.5 42.5 42.5 44.5 44.1 15 U.S. Treasury demand balances, seasonally adjusted 8 3.9 4.4 8.6 6.2 5.1 9.3 9.2 15.3 12.4 11.1 12.9 16 Not seasonally adjusted 4.4 5.1 10.2 6.5 5.3 8.4 10.8 13.2 9.8 12.4 11.7 17 Time deposits, $100,000 or more, seasonally adjusted 9 136.0 159.8 204.4 208.4 202.1 196.8 189.6 190.4 192.6 197.2 203.7 18 Not seasonally adjusted 138.4 162.5 207.8 207.8 200.4 196.0 189.4 188.9 192.7 198.6 205.1 For notes see bottom of page A23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deposits and Commercial Paper A25 1.32 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1 Billions of dollars, estimated daily-average balances Commercial banks TTyyppee ooff hhoollddeerr 1977 1978 19792 11997744 11997755 11997766 DDeecc.. DDeecc.. DDeecc.. Dec. June Sept. Dec. Mar. June Sept. 1 All holders—Individuals, partnerships, and corporations 225.0 236.9 250.1 274.4 271.2 278.8 294.6 270.4 285.6 292.4 2 Financial business 19.0 20.1 22.3 25.0 25.7 25.9 27.8 24.4 25.4 26.7 3 Nonfinancial business 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 2.3 2.4 2.7 2.5 2.4 2.5 2.7 2.7 2.8 2.8 6 Other 11.7 11.3 12.4 12.9 12.4 13.1 14.1 13.5 13.7 14.9 Weekly reporting banks 1978 19793 11997755 11997766 11997777 DDeecc.. DDeecc.. DDeecc.. Sept. Oct. Nov. Dec. Mar. June Sept. 7 All holders—Individuals, partnerships, and 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 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 12 Other 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. Apr. May June July Aug. Sept. Oct. 5 Commercial paper (seasonally adjusted) 52,971 65,101 83,665 92,725 96,106 101,516 102,447 103,907 107,621 106,641 Financial companies1 Dealer-placed paper 2 2 Total 7,261 8,884 12,296 14,961 15,551 16,537 17,042 17,379 18,207 16,085 3 Bank-related 1,900 2,132 3,521 4,251 4,141 3,826 33,,995511 44,,006622 44,,448855 33,,005522 Directly placed paper 3 4 Total 32,511 40,484 51,630 55,313 57,886 61,256 60,532 60,402 61,369 62,761 5,959 7,102 12,314 12,788 13,799 15,130 14,722 15,817 15,930 18,024 13,199 15,733 19,739 22,451 22,669 23,723 24,873 26,126 28,045 27,767 Bankers dollar acceptances (not seasonally adjusted) 7 Total 22,523 25,450 33,700 34,391 35,286 36,989 39,040 42,354 42,147 43,486 Holder 8 Accepting banks 10,442 10,434 8,579 7,535 7,844 8,180 8,288 7,994 r8,119 7,785 9 Own bills 8,769 8,915 7,653 6,685 6,895 6,956 7,243 7,138 7,288 7,121 10 Bills bought 1,673 1,519 927 849 950 1,224 11,,004455 856 831 664 Federal Reserve Banks 991 954 1 252 0 1,400 1,159 475 1,053 317 12 Foreign correspondents 375 362 664 861 940 971 952 957 1,470 1,498 13 Others 10,715 13,904 24,456 25,744 26,501 27,837 28,641 32,928 r31,505 33,886 Basis 14 Imports into United States 4,992 6,378 8,574 8,679 9,007 9,202 9,499 9,847 9,724 10,129 15 Exports from United States 4,818 5,863 7,586 8,087 8,367 8,599 8,784 9,578 9,354 9,519 16 All other 12,713 13,209 17,540 17,625 17,912 19,189 20,756 22,929 23,069 23,838 1. Institutions engaged primarily in activities such as, but not limited to, 4. Includes public utilities and firms engaged primarily in activities such commercial, savings, and mortgage banking; sales, personal, and mortgage as communications, construction, manufacturing, mining, wholesale and financing; factoring, finance leasing, and other business lending; insurance retail trade, transportation, and services. underwriting; and other investment activities. 5. A change in reporting instructions resulted in offsetting shifts in the Digitized for FR2.A ISncEluRd es all financial company paper sold by dealers in the open dealer-placed and directly placed financial company paper in October. market. http://fraser.stlo3.u Aissf erdep.oorrtge/d by financial companies that place their paper directly Federal Resewrivthe inBvaenstkor os.f St. Louis

A26 Domestic Nonfinancial Statistics • December 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 1979—June 19 11% 1979—Sept. 7.. 12% 1978—Apr. 8.00 11.75 July 27, 11% 14 . 13 May 8.27 11.75 Aug. 16 12 21. . 13 % June 8.63 11.75 28. 1122%% 28 . . 13% July. 9.00 11.75 Oct. 9. . 14% Aug. 9.01 11.75 23. . 15 Sept. 9.41 June 11.65 Nov. 1. . 15% Oct.. 9.94 July 11.54 9. . 15% Nov. 10.94 11.91 16. . 15% Dec. 11.55 12.90 30. . 15% 14.39 15.55 1.35 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 6-11, 1979 Size of loan (in thousands of dollars) All Item sizes 1,000 1-24 25-49 50-99 100-499 500-999 and over SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS 1 Amount of loans (thousands of dollars) 8,295,363 881,138 521,863 461,301 1,402,779 678,498 4,349,784 2 Number of loans 148,187 115,179 15,657 7,224 7,779 1,063 1,286 3 Weighted average maturity (months) 2.7 3.2 2.9 3.1 3.2 2.9 2.3 4 Weighted average interest rate (percent per annum) 12.31 12.23 12.44 12.53 12.42 12.61 12.21 5 Interquartile range i 11.75-12.82 11.02-13.65 10.60-13.69 11.75-13.52 11.75-13.25 11.99-13.03 11.75-12.40 Percentage of amount of loans 6 With floating rate 49.0 19.6 21.4 32.3 41.6 57.8 61.0 7 Made under commitment 46.0 26.5 42.8 40.2 45.3 59.9 49.0 LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS 8 Amount of loans (thousands of dollars) 1,888,708 358,723 169,065 120,865 1,240,055 9 Number of loans 29,692 28,087 847 177 581 10 Weighted average maturity (months) 45.1 44.9 45.4 51.2 44.5 11 Weighted average interest rate (percent per annum) 12.25 12.57 12.82 12.91 12.02 12 Interquartile range * 11.57-12.97 11.00-14.09 12.00-13.75 12.25-13.75 11.57-12.50 Percentage of amount of loans 13 With floating rate 48.8 32.8 58.1 68.2 50.3 14 Made under commitment 49.2 26.3 56.1 67.4 53.1 CONSTRUCTION AND LAND DEVELOPMENT LOANS 15 Amount of loans (thousands of dollars) 895,394 139,974 88,809 66,913 186,534 413,165 16 Number of loans 21,106 16,444 2,503 968 966 225 17 Weighted average maturity (months) 7.4 5.4 4.0 7.2 8.8 8.7 18 Weighted average interest rate (percent per annum) 12.52 11.49 12.49 12.79 12.95 12.64 19 Interquartile range! 11.30-13.75 10.34-12.40 11.46-12.96 12.00-13.75 12.34-14.00 11.00-13.75 Percentage of amount of loans 20 With floating rate 60.6 14.3 24.9 57.1 68.8 80.7 21 Secured by real estate 91.0 82.4 96.5 95.9 85.7 94.2 22 Made under commitment 71.5 63.2 66.8 67.9 75.0 74.3 Type of construction 23 1- to 4-family 40. 82.5 84.8 53.8 41.9 13.1 24 Multifamily 9.4 1.8 5.1 13.5 13.8 10.3 24 Nonresidential 50.5 15.6 10.1 32.7 44.3 76.6 All 250 sizes 1-9 10-24 25-49 50-99 100-249 and over LOANS TO FARMERS 26 Amount of loans (thousands of dollars) 817,603 150,832 126,103 116,791 150,651 184,649 88,578 27 Number of loans 59,186 42,815 8,970 3,574 2,363 1,280 184 28 Weighted average maturity (months) 6.2 6.9 6.6 8.0 5.6 4.2 4.5 29 Weighted average interest rate (percent per annum) 11.28 10.86 11.08 10.89 11.12 11.57 12.40 30 Interquartile range 1 10.34-12.00 10.25-11.41 10.34-11.52 10.25-11.50 10.25-11.61 11.00-12.13 11.00-13.54 By purpose of loan 31 Feeder livestock 11.18 10.61 11.12 10.39 11.36 11.05 12.58 32 Other livestock 11.08 10.81 10.58 11.49 10.58 12.29 (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) 35 Other 11.50 10.98 11.67 10.87 11.50 11.82 12.3 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 Instrument 1976 1977 1978 Aug. Sept. Oct. Nov. Nov. 3 Nov. 10 Nov. 17 Nov. 24 Dec. 1 Money market rates 1 Federal funds1 5.05 5.54 7.94 10.94 11.43 13.77 13.18 15.61 13.77 13.30 13.10 12.46 Commercial paper2.3 2 1-month 4.99 5.42 7.76 10.44 11.52 13.06 13,34 n.a. 14.07 13.60 13.26 12.28 3 3-month 5.24 5.54 7.94 10.43 11.63 13.23 13.57 n.a. 14.24 13.80 13.50 12.65 4 6-month 5.35 5.60 7.99 10.39 11.60 13.23 13.26 n.a. 13.95 13.37 13.19 12.40 Finance paper, directly placed2-3 5 1-month 4.91 5.38 7.73 10.35 11.45 12.85 13.25 n.a. 13.96 13.59 13.14 12.14 6 3-month n.a. 5.49 7.80 10.09 10.89 12.24 12.52 n.a. 12.87 12.80 12.65 11.80 7 6-month n.a. 5.50 7.78 9.68 10.43 11.50 12.00 n.a. 12.25 12.19 12.14 11.43 8 Prime bankers acceptances, 90-day3.4 5.19 5.59 8.11 10.62 11.70 13.44 13.53 14.11 14.20 13.72 13.46 12.62 Certificates of deposit, secondary market 5 9 1-month 5.07 5.48 7.88 10.58 11.70 13.36 13.60 14.17 14.28 13.83 13.62 12.61 10 3-month 5.27 5.64 8.22 10.71 11.89 13.66 13.90 14.45 14.53 14.09 13.95 12.96 11 6-month 5.62 5.92 8.61 10.86 12.01 13.83 13.97 14.49 14.60 14.11 14.03 13.09 12 Eurodollar deposits, 3-month 6 5.57 6.05 8.74 11.53 12.61 14.59 15.00 15.65 15.68 15.43 15.16 14.21 U.S. Treasury bills3.7 Secondary market 13 3-month 4.98 5.27 7.19 9.52 10.26 11.70 11.79 12.07 12.25 11.90 11.77 11.26 14 6-month 5.26 5.53 7.58 9.49 10.20 11.66 11.82 12.14 12.28 11.92 11.84 11.25 15 1-year 5.52 5.71 7.74 9.16 9.89 11.23 11.22 11.65 11.66 11.12 11.25 10.74 Auction average 8 16 3-month 4.989 5.265 7.221 9.450 10.182 11.472 11.868 12.256 12.098 12.026 11.944 11.018 17 6-month 5.266 5.510 7.572 9.450 10.125 11.339 11.856 12.193 12.086 11.945 12.035 11.022 Capital market rates U.S. TREASURY NOTES AND BONDS Constant maturities 9 18 1-year 5.88 6.09 8.34 9.98 10.84 12.44 12.39 12.91 12.94 12.31 12.45 11.76 19 2-year 6.45 8.34 9.46 10.06 11.49 11.81 12.13 12.15 11.78 12.02 11.27 20 3-year 6.77 6.69 8.29 9.14 9.69 10.95 11.18 11.64 11.56 11.12 11.31 10.64 21 4-year10 9.20 9.50 11.55 10.85 22 5-year 7.18 6.99 8.32 9.06 9.41 10.63 10.93 11.25 11.21 10.95 11.09 10.42 23 7-year 7.42 7.23 8.36 9.05 9.38 10.47 10.80 11.00 11.03 10.83 10.91 10.40 24 10-year 7.61 7.42 8.41 9.03 9.33 10.30 10.65 10.78 10.87 10.69 10.71 10.34 25 20-year 7.86 7.67 8.48 8.97 9.21 9.99 10.37 10.44 10.56 10.42 10.42 10.09 26 30-year 88..4499 88..9988 99..1177 99..8855 1100..3300 1100..2266 1100..4455 1100..3366 1100..3355 1100..0077 Composite11 27 3 to 5 years 6.94 6.85 8.30 9.08 9.56 10.75 10.98 11.43 11.36 10.97 11.08 10.42 28 Over 10 years (long-term) 6.78 7.06 7.89 8.42 8.68 9.44 9.80 9.88 9.98 9.86 9.84 9.51 STATE AND LOCAL NOTES AND BONDS Moody's series12 29 Aaa 5.66 5.20 5.52 5.72 5.90 6.25 6.49 6.35 6.35 6.55 6.60 6.60 30 Baa 7.49 6.12 6.27 6.36 6.75 7.34 7.66 7.90 7.60 7.70 7.70 7.40 31 Bond Buyer series13 6.64 5.68 6.03 6.20 6.52 7.08 7.30 7.26 7.27 7.31 7.38 7.26 CORPORATE BONDS 32 Seasoned issues, all industries14 9.01 8.43 9.07 9.74 9.93 10.71 11.37 11.32 11.41 11.37 11.40 11.30 By rating groups 33 Aaa 8.43 8.02 8.73 9.23 9.44 10.13 10.76 10.73 10.83 10.75 10.83 10.63 34 Aa 8.75 8.24 8.92 9.53 9.70 10.46 11.22 11.06 11.23 11.27 11.29 11.14 35 A 9.09 8.49 9.12 9.85 10.03 10.83 11.50 11.50 11.58 11.47 11.52 11.40 36 Baa 9.75 8.97 9.45 10.35 10.54 11.40 11.99 11.98 11.99 11.99 11.98 12.00 Aaa utility bonds15 37 New issue 8.48 8.19 8.96 9.48 9.83 10.97 11.42 11.51 11.50 11.50 11.45 11.20 38 Recently offered issues 8.49 8.19 8.97 9.49 9.87 10.91 11.36 11.42 11.45 11.41 11.38 11.17 MEMO: Dividend/price ratio 39 Preferred stocks 7.97 7.60 8.25 9.02 9.16 7.44 7.40 7.28 7.14 7.40 7.54 7.64 40 Common stocks 3.77 4.56 5.28 5.30 5.31 5.56 5.71 5.72 5.88 5.70 5.70 5.55 1. Weekly figures are 7-day averages of daily effective rates for the week 10. Each figure is an average of only five business days near the end of ending Wednesday; the daily effective rate is an average of the rates on the month. The rate for each month is used to determine the maximum a given day weighted by the volume of transactions at these rates. interest rate payable in the following month on small saver certificates 2. Beginning November 1977, unweighted average of offering rates with maturities of four years or more. (See table 1.16.) quoted by at least five dealers (in the case of commercial paper), or 11. Unweighted averages for all outstanding notes and bonds in maturity finance companies (in the case of finance paper). Previously, most repre- ranges shown, based on daily closing bid prices. "Long-term" includes sentative rate quoted by those dealers and finance companies. Before all bonds neither due nor callable in less than 10 years, including several Nov. 1979, maturities for data shown are 30-59 days, 90-119 days, and very low yielding "flower" bonds. 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 12. General obligations only, based on figures for Thursday, from 150-179 days for finance paper. Moody's Investors Service. 3. Yields are quoted on a bank-discount basis. 13. Twenty issues of mixed quality. 4. Average of the midpoint of the range of daily dealer closing rates 14. Averages of daily figures from Moody's Investors Service. offered for domestic issues. 15. Compilation of the Board of Governors of the Federal Reserve 5. Five-day average of rates quoted by five dealers (3-month series was System. previously a 7-day average). Issues included are long-term (20 years or more). New-issue yields 6. Averages of daily quotations for the week ending Wednesday. are based on quotations on date of offering; those on recently offered 7. Except for auction averages, yields are computed from daily closing issues (included only for first 4 weeks after termination of underwriter bid prices. price restrictions), on Friday close-of-business quotations. 8.Rates are recorded in the week in which bills are issued. 16. Provided by Standard and Poor's Corporation. 9. Yield on the more actively traded issues adjusted to constant maturities by the U.S. Treasury, based on daily closing bid prices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • December 1979 1.37 STOCK MARKET Selected Statistics 1979 Indicator 1976 1977 1978 May June July Aug. Sept. Oct. Nov. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31,1965 = 50). 54.45 53.67 53.76 56.21 57.61 58.38 61.19 61.89 59.27 59.02 60.44 57.84 58.30 62.21 63.57 64.24 67.71 69.17 66.68 66.45 39.57 41.07 43.25 45.60 47.53 48.85 52.48 52.21 48.07 47.61 4 Utility 36.97 40.91 39.23 37.48 38.44 38.88 39.26 38.39 36.58 36.55 52.94 55.23 56.74 58.80 61.87 64.43 68.40 67.21 61.64 60.64 6 Standard & Poor's Corporation (1941-43 = 10) i.. 102.01 98.18 96.11 99.73 101.73 102.71 107.36 108.60 104.47 103.66 7 American Stock Exchange (Aug. 31,1973 = 100). 101.63 116.18 144.56 180.81 196.08 197.63 208.29 223.00 212.33 216.58 Volume of trading (thousands of shares) 8 New York Stock Exchange 21,189 20,936 28,591 2288,,335522 34,662 3322,,441166 35,870 37,576 37,301 31,126 9 American Stock Exchange 2,565 2,514 3,922 3,888 5,236 3,890 4,503 5,405 5,446 3,938 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers/dealers2 8,166 9,993 11,035 11,314 11,763 12,019 12,236 12,178 11,483 11 Margin stock3 7,960 9,740 10,830 11,130 11,590 11,840 12,060 12,000 11,310 12 Convertible bonds 204 250 205 183 172 178 17*6 177 17*3 13 Subscription issues 2 3 1 1 1 Free credit balances at brokers4 14 Margin-account. 585 640 835 840 895 885 910 960 950 15 Cash-account 1,855 2,060 2,510 2,590 2,880 3,025 2,995 3,325 3,490 Margin-account debt at brokers (percentage distribution, end of period) 16 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 By equity class (in percent)5 17 Under 40 12.0 18.0 33.0 22.0 21.0 19.0 14.0 16.0 27.0 18 40-49 23.0 36.0 28.0 30.0 28.0 28.0 26.0 26.0 31.0 n.a. 19 50-59 35.0 23.0 18.0 23.0 26.0 28.0 31.0 30.0 20.0 20 60-69 15.0 11.0 10.0 12.0 12.0 12.0 14.0 14.0 10.0 21 70-79 8.7 6.0 6.0 7.0 7.0 7.0 8.0 8.0 6.0 22 80 or more 6.0 5.0 5.0 6.0 6.0 6.0 7.0 6.0 6.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars) . 8,776 9,910 13,092 13,099 13,634 Distribution by equity status (percent) 24 Net credit status 41.3 43.4 41.3 41.3 42.6 Debit status, equity of 25 60 percent or more 47.8 44.9 45.1 48.6 47.3 26 Less than 60 percent 10.9 11.7 13.6 10.1 10.1 Margin requirements (percent of market value and effective date)7 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 27 Margin stocks 70 80 65 55 65 50 28 Convertible bonds 50 60 50 50 50 50 29 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and in- 5. Each customer's equity in his collateral (market value of collateral surance companies. With this change the index includes 400 industrial less net debit balance) is expressed as a percentage of current collateral stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public values. utility (formerly 60), and 40 financial. 6. Balances that may be used by customers as the margin deposit re- 2. Margin credit includes all credit extended to purchase or carry quired for additional purchases. Balances may arise as transfers based stocks or related equity instruments and secured at least in part by stock. on loan values of other collateral in the customer's margin account or Credit extended is end-of-month data for member firms of the New York deposits of cash (usually sales proceeds) occur. Stock Exchange. 7. Regulations G, T, and U of the Federal Reserve Board of Governors, In addition to assigning a current loan value to margin stock generally, prescribed in accordance with the Securities Exchange Act or 1934, Regulations T and U permit special loan values for convertible bonds limit the amount of credit to purchase and carry margin stocks that may and stock acquired through exercise of subscription rights. be extended on securities as collateral by prescribing a maximum loan 3. A distribution of this total by equity class is shown on lines 17-22. value, which is a specified percentage of the market value of the collateral 4. Free credit balances are in accounts with no unfulfilled commitments at the time the credit is extended. Margin requirements are the difference to the brokers and are subject to withdrawal by customers on demand. between the market value (100 percent) and the maximum loan value. The term "margin stocks" is defined in the corresponding regulation. 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 1979 AAccccoouunntt 1976 1977 1978 Feb. Mar. Apr. May June July Aug. Sept. Oct.? Savings and loan associations r 1 Assets 391,907 459,241 523,542 534,044 539,582 543,320 549,031 555,409 561 ,037 566,493 570,479 576,138 2 Mortgages 323,005 381,163 432,808 437,849 441,358 445,638 450,978 456,544 460,620 464,609 468,307 472,094 3 Cash and investment securities1 35,724 39,150 44,884 49,042 50,153 48,698 48,280 48,253 49,496 50,007 49,301 49,227 4 Other 33,178 38,928 45,850 47,153 48,071 48,984 49,773 50,612 50,721 51,877 52,871 54,817 5 Liabilities and net worth 391,907 459,241 523,542 534,044 539,582 543,320 549 ,031 555,409 561,037 566,493 570,479 576 ,138 6 Savings capital 335,912 386,800 430,953 438,564 446,898 445,751 447,788 454,642 456,657 457,856 462,626 464,375 7 Borrowed money 19,083 27,840 42,907 41,315 41,538 43,710 44,324 46,993 48,437 50,437 52,738 54,264 8 FHLBB 15,708 19,945 31,990 31,004 31,123 32,389 33,003 34,266 35,286 36,009 37,620 39,229 9 Other 3,375 7,895 10,917 10,311 10,415 11,321 11,321 12,727 13,151 14,428 15,118 15,035 10 Loans in process 6,840 9,911 10,721 10,271 10,331 10,690 11,118 11,260 11,309 11,047 10,909 10,778 11 Other 8,074 9,506 9,904 14,230 10,905 12,950 15,259 11,681 13,503 15,712 12,497 14,662 12 Net worth 2 21,998 25,184 29,057 29,664 29,910 30,219 30,542 30,833 31,131 31,441 31,709 32,059 13 MEMO : Mortgage loan commitments outstandings.. 14,826 19,875 18,911 19,037 21,082 22,915 23,560 22,770 22,360 22,282 22,397 20,949 Mutual savings banks9 14 Assets 134,812 147,287 158,174 160,078 161,866 Loans 15 Mortgage 81,630 88,195 95,157 95,821 96,136 16 Other 5,183 66,,221100 7,195 8,455 9,421 Securities 17 U.S. government 5,840 5,895 4,959 4,801 4,814 n.a. n.a. n.a. n. a. n.a. n.a. 18 State and local government. 2,417 2,828 3,333 3,167 3,126 19 Corporate and other4 33,793 37,918 39,732 40,307 40,658 20 Cash 2,355 2,401 3,665 3,306 3,410 21 Other assets 3,593 3,839 4,131 4,222 4,300 22 Liabilities 134,812 147,287 158,174 160,078 161,866 n .a. 23 Deposits 122,877 134,017 142,701 143,539 145,650 145,096 145,056 146,057 145,757 145,713 146,252 24 Regular 5 121,961 132,744 141,170 142,071 144,042 143,210 143,271 144,161 143,843 143,731 144,258 25 Ordinary savings 74,535 78,005 71,816 68,817 68,829 67,758 67.577 68, 104 67,537 66,733 65,676 26 Time and other 47,426 54,739 69,354 73,254 75,213 75,452 75,694 76,057 76,306 76,998 78,572 27 Other 916 1,272 1,531 1,468 1,608 1,886 1,784 1,896 1,914 1,982 2, 003 28 Other liabilities 2,884 3,292 4,565 5,485 5,048 5,050 5,172 4, 545 5, 578 6,350 5, 790 29 General reserve accounts 9,052 99,,997788 10,907 11,054 11,167 11,085 11,153 11, 212 11,264 11,324 11,388 30 MEMO : Mortgage loan commitments outstanding®.. 2,439 4,066 4,400 4,453 4,482 4,449 4, 352 4,469 4, 214 4,071 4, 123 Life insurance companies 31 Assets 321,552 351,722 389,924 396,190 399,579 402,963 405,627 409,853 414, 120 418, 350 421,660 Securities 32 Government 17,942 19,553 20,009 20,222 20,463 20,510 20,381 20,397 20,468 20,472 20,379 33 United States7 5,368 5,315 4,822 5,114 5,234 5,272 5,149 5, 178 5,228 5,229 5,' 067 34 State and local 5,594 6,051 6,402 6,255 6,259 6,268 6,272 6,241 6,243 6,258 6,: 295 35 Foreign 8 6,980 8,187 8,785 8,853 8,970 8,970 8,960 8,978 8,997 8,985 9,017 36 Business 157,246 175,654 198,105 202,843 204,895 206, 160 207, 775 209,804 212,876 215,252 216,500 n.a. 37 Bonds 122,984 141,891 162,587 167,548 168,622 169,817 171,762 173, 130 175,854 176,920 177,698 38 Stocks 34,262 33,763 35,518 35,295 36,273 36,343 36,013 36,674 37,022 38,332 38,802 39 Mortgages 91,552 96,848 106,167 107,385 108,417 109,198 110,023 111,123 112, 120 113,102 114,368 40 Real estate 10,476 11,060 11,764 11,943 11,484 12,086 12,101 12,199 12,351 12,738 12,740 25,834 27,556 30,146 30,778 31,160 31,512 31,832 32,131 32,390 32,713 33,046 42 Other assets 18,502 21,051 23,733 23,019 23,160 23,497 23,515 24, 199 23,915 24,073 24,637 Credit unions 43 Total assets/liabilities and 45,225 54,084 62,595 62,319 63,883 63,247 64,372 65,603 66,563 67,271 68,032 44 Federal 24,396 29,574 34,681 34,419 35,289 34,653 35,268 35,986 36,733 37,045 37,498 45 State 20,829 24,510 27,914 27,900 28,594 28,594 29,104 29,617 29,830 30,226 30,534 46 Loans outstanding 34,384 42,055 51,807 51,716 52,480 52,542 53,100 53,831 54,160 55,110 55,744 47 Federal 18,311 22,717 28,583 28,427 28,918 28,849 29,109 29,525 29,674 30,179 30,495 n.a. 48 State 16,073 19,338 23,224 23,289 23,562 23,693 23,991 24,306 24,486 24,931 25,249 49 Savings 39,173 46,832 53,048 52,484 54,243 53,745 54,638 R55,948 56,512 56,701 57,372 50 Federal (shares) 21,130 25,849 29,326 28,743 29,741 29.339 29,755 30,563 30,857 30,890 31,227 51 State (shares and deposits). 18,043 20,983 23,722 23,741 24,502 24,406 24,883 R25,386 25,655 25,811 26,145 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • December 1979 1.39 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calend ar year FFiissccaall FFiissccaall FFiissccaall TTyyppee ooff aaccccoouunntt oorr ooppeerraattiioonn yyeeaarr yyeeaarr yyeeaarr 1978 1979 1979 11997777 11997788 11997799 HI H2 HI Aug. Sept. Oct. U.S. budget 1 Receipts1 357,762 401,997 465,940 210,650 206,275 246,574 39,353 47,295 33,099 2 Outlays i 402,725 r450,938 493,221 222,561 238,186 245,616 54,279 29,625 47,807 3 Surplus, or deficit (—) -44,963 r —48,940 -27,281 -11,912 -31,912 958 -14,926 17,670 -14,708 4 Trust funds 9,497 12,693 18,335 4,334 11,754 4,041 -4,673 16,039 -6,555 5 Federal funds2 -54,460 r —61,633 -45,616 -16,246 -43,666 -4,999 -10,254 1,631 -8,153 Off-budget entities surplus, or deficit (-) 6 Federal Financing Bank outlays -8,415 -10,661 -13,261 -5,105 -5,082 -7,712 -908 -1,383 -1,536 7 Other 3 -264 355 832 -790 1,843 -447 -169 -730 1,598 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (—) -53,642 r —59,246 -39,710 -17,806 -35,151 -7,201 --1166,,000033 15,557 --1144,,664466 Source of financing 9 Borrowing from the public 53,516 '•-59,106 33,641 23,378 30,314 6,039 3,268 4,249 2,217 10 Cash and monetary assets (decrease, or increase (—))4 -2,247 r —3,023 -408 -5,098 3,381 -8,878 6,535 -16,562 14,220 11 Other 5 2,373 r3,163 6,477 -474 1,456 10,040 6,200 -3,244 -1,791 MEMO: 12 Treasury operating balance (level, end of period) 1199,,110044 22,444 24,176 1177,,552266 1166,,229911 17,485 6,950 24,176 10,460 13 Federal Reserve Banks 15,740 16,647 6,489 11,614 4,196 3,290 3,542 6,489 2,209 14 Tax and loan accounts 3,364 5,797 17,687 5,912 12,095 14,195 3,408 17,687 8,251 1. Effective June 1978, earned income credit payments in excess of 5. Includes accured interest payable to the public; deposit funds; misan individual's tax liability, formerly treated as income tax refunds, are cellaneous liability (including checks outstanding) and asset accounts; classified as outlays retroactive to January 1976. seignorage; increment on gold; net gain/loss for U.S. currency valuation 2. Half-year figures calculated as a residual (total surplus/deficit less adjustment; net gain/loss for IMF valuation adjustment; and profit on trust fund surplus/deficit). the sale of gold. 3. Includes Pension Benefit Guaranty Corp.; Postal Service Fund; Rural Electrification and Telephone Revolving Fund; and Rural Telephone SOURCE. "Monthly Treasury Statement of Receipts and Outlays of Bank. the U.S. Government," Treasury Bulletin, and the Budget of the United 4. Includes U.S. Treasury operating cash accounts; special drawing States Government, Fiscal Year 1980. rights; gold tranche drawing rights; loans to International Monetary Fund; and other cash and monetary assets. NOTES TO TABLE 1.38 1. Holdings of stock of the Federal Home Loan Banks are included in NOTE. Savings and loan associations: Estimates by the FHLBB for "other assets." all associations in the United States. Data are based on monthly reports 2. Includes net undistributed income, which is accrued by most, but not of federally insured associations and annual reports of other associations. all, associations. Even when revised, data for current and preceding year are subject to 3. Excludes figures for loans in process, which are shown as a liability. further revision. 4. Includes securities of foreign governments and international organiza- Mutual savings banks: Estimates of National Association of Mutual tions and nonguaranteed issues of U.S. government agencies. Savings Banks for all savings banks in the United States. Data are re- 5. Excludes checking, club, and school accounts. ported on a gross-of-valuation-reserves basis. 6. Commitments outstanding (including loans in process) of banks in Life insurance companies: Estimates of the American Council of Life New York State as reported to the Savings Banks Association of the Insurance for all life insurance companies in the United States. Annual State of New York. figures are annual-statement asset values, with bonds carried on an 7. Direct and guaranteed obligations. Excludes federal agency issues amortized basis and stocks at year-end market value. Adjustments for not guaranteed, which are shown in this table under "business" securities. interest due and accrued and for differences between market and book 8. Issues of foreign governments and their subdivisions and bonds of the values are not made on each item separately but are included, in total, in International Bank for Reconstruction and Development. "other assets." 9. The NAMSB reports that, effective April 1979, balance sheet data Credit unions: Estimates by the National Credit Union Administration are not strictly comparable with previous months. This largely reflects: for a group of federal and state-chartered credit unions that account for (1) changes in FDIC reporting proceedures; and (2) reclassification of about 30 percent of credit union assets. Figures are preliminary and certain items. revised annually to incorporate recent benchmark data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.40 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1978 1979 1979 111999777777 111999777888 ''' 111999777999 HI H2 HI Aug. Sept. Oct. RECEIPTS 1 AH sources1 357,762 401,997 465,940 210,650 206,275 246,574 39,353 47,295 33,099 2 Individual income taxes, net 157,626 180,988 217,841 90,336 98,854 111,603 17,215 23,341 18,682 3 Withheld 114444,,882200 116655,,221155 195,295 8822,,778844 90,148 98,683 1166,,995522 16,194 17,777 4 Presidential Election Campaign Fund 37 39 36 36 3 32 3 0 0 5 Nonwithheld 42,062 47,804 56,215 37,584 10,777 44,116 1,041 7,349 1,183 6 Refunds i 2299,,229933 3322,,007700 33,705 30,068 2,075 31,228 781 201 278 Corporation income taxes 7 Gross receipts 60,057 65,380 71,448 38,496 28,536 42,427 1,661 10,096 2,543 8 Refunds 5,164 55,,442288 5,771 22,,778822 2,757 2,889 293 463 1,068 9 Social insurance taxes and contributions, net 110088,,668833 123,410 141,591 66,191 61,064 75,609 17,164 10,809 9,384 10 Payroll employment taxes and contributions 2 88,196 9999,,662266 115,041 51,668 51,052 59,298 1133,,557777 99,,889933 8,013 11 Self-employment taxes and contributions 3 4,014 4,267 5,034 3,892 369 4,616 0 417 0 11,312 13,850 15,387 7,800 6,727 8,623 2,847 154 840 13 Other net receipts 4 5,162 5,668 6,130 2,831 2,917 3,072 740 344 530 14 Excise taxes 17,548 18,376 18,745 8,835 9,879 8,984 1,498 1,660 1,547 15 Customs deposits 5,150 6,573 7,439 3,320 3,748 3,682 689 559 646 16 Estate and gift taxes 7,327 5,285 5,411 2,587 2,691 2,657 534 434 526 17 Miscellaneous receipts * 6,536 7,413 9,237 3,667 4,260 4,501 886 859 838 OUTLAYS 18 All types1 402,725 450,938 493,221 222,561 238,186 245,616 54,279 29,625 47,807 97,501 105,192 116,491 52,535 55,124 57,643 10,657 9,200 10,448 20 International affairs 4,813 6,083 5,419 3,347 2,060 3,538 944 748 1,263 21 General science, space, and 4,677 4,721 5,620 2,395 2,383 2,461 503 965 451 22 Energy 4,172 5,901 7,855 2,721 4,279 4,417 789 459 52 23 Natural resources and environment.. 10,000 11,167 12,346 4,690 6,020 5,672 1,394 1,234 1,433 5,532 7,618 6,410 2,435 4,967 3,020 -215 -28 402 25 Commerce and housing credit -44 3,319 2,592 -443 3,292 60 59 -46 2,078 26 Transportation 14,636 15,462 17,013 7,215 8,740 7,688 1,702 1,589 1,923 27 Community and regional development 6,286 11,263 9,735 5,500 5,844 44,,449999 933 1,003 630 28 Education, training, employment, and social services 20,985 2255,,889900 28,524 1133,,221188 1144,,224477 1144,,446677 2,645 2,341 2,330 29 Health 38,785 43,676 49,614 21,147 23,830 24,860 4,632 4,109 4,662 30 Income security1 137,915 146,503 160,496 75,370 73,127 81,173 23,659 4,546 14,477 31 Veterans benefits and services 18,038 18,987 19,916 9,625 9,532 10,127 2,559 599 1,809 32 Administration of justice 3,600 3,786 4,138 1,945 1,989 2,096 397 281 460 33 General government 3,374 3,723 4,671 1,845 2,304 2,291 432 333 209 34 General-purpose fiscal assistance 9,499 9,377 8,234 4,678 4,610 3,890 53 131 1,822 35 Interest <> 38,009 44,040 52,634 22,280 24,036 26,934 4,240 3,818 4,082 36 Undistributed offsetting receipts 6-7.. -15,053 -15,772 -18,489 -7,945 -8,199 -8,999 -1,103 -1,655 -722 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 of 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 • December 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 debt1 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 TTyyppee aanndd hhoollddeerr 11997755 11997766 11997777 11997788 July Aug. Sept. Oct. Nov. 1 Total gross public debt 576.6 653.5 718.9 789.2 807.5 813.1 826.5 826.8 833.8 By type 2 Interest-bearing debt 575.7 652.5 715.2 782.4 806.5 812.1 819.0 825.7 832.7 3 Marketable 363.2 421.3 459.9 487.5 507.0 509.2 506.7 515.0 519.6 4 Bills 157.5 164.0 161.1 161.7 159.9 160.5 161.4 161.7 165.1 5 Notes 167.1 216.7 251.8 265.8 278.3 277.6 274.2 280.8 279.7 6 Bonds 38.6 40.6 47.0 60.0 68.8 71.1 71.1 72.5 74.8 7 Nonmarketable1 212.5 231.2 255.3 294.8 299.5 302.9 312.3 310.7 313.2 8 Convertible bonds 2 2.3 2.3 2.2 2.2 2.2 2.2 2.2 2.2 2.2 9 State and local government series 1.2 4.5 13.9 24.3 24.2 24.6 24.6 24.4 24.5 10 Foreign issues 3 21.6 22.3 22.2 29.6 28.0 27.7 28.1 28.0 29.2 11 Government 21.6 22.3 22.2 28.0 23.9 23.5 24.0 23.9 23.9 12 Public 0 0 0 1.6 4.2 4.2 4.2 4.2 5.3 13 Savings bonds and notes 67.9 72.3 77.0 80.9 80.9 80.9 80.0 80.5 80.0 119.4 129.7 139.8 157.5 163.9 167.3 176.4 175.3 177.0 15 Non-interest-bearing debt 1.0 1.1 3.7 6.8 1.0 1.0 7.5 1.1 1.1 By holder5 16 U.S. government agencies and trust funds 139.1 147.1 154.8 170.0 176.3 178.6 187.8 89.8 97.0 102.5 109.6 111.4 113.0 114.8 18 Private investors 349.4 409.5 461.3 508.6 519.8 521.5 524.0 19 Commercial banks 85.1 103.8 101.4 93.4 93.4 92.7 92.3 4.5 5.9 5.9 5.2 4.7 4.6 4.7 21 Insurance companies 9.5 12.7 15.1 15.0 14.5 14.6 14.6 22 Other corporations 20.2 27.7 22.7 20.6 21.2 20.7 23.7 n.a. n. a. 23 State and local governments 34.2 41.6 55.2 68.6 69.9 70.1 68.9 Individuals 24 Savings bonds 67.3 72.0 76.7 80.7 80.7 80.7 80.6 25 Other securities 24.0 28.8 28.6 30.0 32.0 32.3 32.6 26 Foreign and international6 66.5 78.1 109.6 137.8 r124.4 >•123.7 125.2 27 Other miscellaneous investors7 38.0 38.9 46.1 57.4 r79.0 '82.2 81.3 1. Includes (not shown separately): Securities issued to the Rural 6. Consists of the investments of foreign balances and international Electrification Administration, depositary bonds, retirement plan bonds, accounts in the United States. Beginning with July 1974, the figures exclude and individual retirement bonds. non-interest-bearing notes issued to the International Monetary Fund. 2. These nonmarketable bonds, also known as Investment Series B 7. Includes savings and loan associations, nonprofit institutions, cor- Bonds, may be exchanged (or converted) at the owner's option for 1 Vi porate pension trust funds, dealers and brokers, certain government percent, 5-year marketable Treasury notes. Convertible bonds that have deposit accounts, and government sponsored agencies. been so exchanged are removed from this category and recorded in the notes category above. NOTE. Gross public debt excludes guaranteed agency securities and, 3. Nonmarketable dollar-denominated and foreign currency denomi- beginning in July 1974, includes Federal Financing Bank security issues. nated 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 1977 11997788 1977 11997788 Aug. Sept. Aug. Sept. All maturities 1 to 5 years 459,927 487,546 509,187 506,693 151,264 162,886 160,771 157,315 2 U.S. government agencies and trust funds 14,420 12,695 11,388 11,379 4,788 3,310 3,109 3,099 3 Federal Reserve Banks 101,191 109,616 113,027 104,645 27,012 31,283 27,055 26,642 4 Private investors 344,315 365,235 384,771 390,669 119,464 128,293 130,607 127,574 75,363 68,890 66,813 66,653 38,691 38,390 37,055 36,874 4,379 3,499 3,244 3,287 2,112 1,918 1,752 1,719 7 Insurance companies 12,378 11,635 11,743 11,777 4,729 4,664 5,095 5,013 9,474 8,272 7,127 8,952 3,183 3,635 2,265 3,178 4,817 3,835 3,547 3,517 2,368 2,255 2,070 1,994 15,495 18,815 18,151 17,491 3,875 3,997 4,283 4,051 11 All others 222,409 250,288 274,145 278,991 64,505 73,433 78,087 74,745 Total, within 1 year 5 to 10 years 12 All holders 230,691 228,516 245,699 246,693 45,328 50,400 45,510 45,507 13 U.S. government agencies and trust funds 1,906 1,488 1,416 1,417 2,129 1,989 872 872 14 Federal Reserve Banks 56,702 52,801 61,392 53,254 10,404 14,809 12,246 12,356 15 Private investors 172,084 174,227 182,891 192,023 32,795 33,601 32,392 32,279 29,477 20,608 20,232 20,478 6,162 7,490 6,951 6,870 1,400 817 799 849 584 496 444 470 2,398 1,838 1,865 1,923 3,204 2,899 2,478 2,587 19 Nonfinancial corporations 5,770 4,048 4,150 5,052 307 369 324 355 2,236 1,414 1,334 1,381 143 89 68 68 7,917 8,194 5,952 5,600 1,283 1,588 1,719 1,712 22 All others 122,885 137,309 148,559 156,741 21,112 20,671 20,408 20,218 Bills, within 1 year 10 to 20 years 23 All holders 161,081 161,747 160,489 161,378 12,906 19,800 26,270 26,241 24 U.S. government agencies and trust funds 32 2 « * 3,102 3,876 4,520 4,520 25 Federal Reserve Banks 42,004 42,397 42,911 44,449 1,510 2,088 3,203 3,232 26 Private investors 119,035 119,348 117,578 127,068 8,295 13,836 18,548 18,489 11,996 5,707 4,663 5,137 456 956 1,062 1,006 484 150 136 157 137 143 133 134 1,187 753 506 489 1,245 1,460 1,365 1,331 30 Nonfinancial corporations 4,329 1,792 1,831 2,302 133 86 225 221 806 262 201 192 54 60 59 58 6,092 5,524 2,977 2,715 890 1,420 2,070 1,993 33 All others 94,152 105,161 107,264 116,076 5,380 9,711 13,634 13,747 Other, within 1 year Over 20 years 34 All holders 69,610 66,769 85,210 85,315 19,738 25,944 30,937 30,937 35 U.S. government agencies and trust funds 1,874 1,487 1,416 1,416 2,495 2,031 1,472 1,472 36 Federal Reserve Banks 14,698 10,404 18,481 8,805 5,564 8,635 9,131 9,161 37 Private investors 53,039 54,879 65,313 64,955 11,679 15,278 20,334 20,304 15,482 14,901 15,569 15,340 578 1,446 1,513 1,427 916 667 662 692 146 126 116 115 1,211 1,084 1,359 1,433 802 774 941 925 41 Nonfinancial corporations. 1,441 2,256 2,319 2,750 81 135 162 147 42 Savings and loan associations 1,430 1,152 1,133 1,190 16 17 16 15 43 State and local governments 1,825 2,670 2,975 2,885 1,530 3,616 4,128 4,135 44 All others 28,733 32,149 41,296 40,665 8,526 9,164 13,457 13,540 NOTE. Direct public issues only. Based on Treasury Survey of Owner- (1) 5,401 commercial banks, 461 mutual savings banks, and 723 insurance ship from Treasury Bulletin (U.S. Treasury Department). companies, each about 80 percent; (2) 427 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 Sept. 30, 1979: in the Treasury Survey, including investor groups not listed separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • December 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 Aug. Sept. Oct. Aug. 15 Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 1 U.S. government securities... 10,449 10,838 10,285 12,259 13,489 13,846 12,290 11,946 12,265 13,336 13,523 14,049 By maturity 2 Bills 6,676 6,746 6,173 6,787 8,056 7,856 7,228 7,588 6,419 7,965 7,708 8,639 3 Other within 1 year 210 237 392 466 606 430 483 493 487 887 372 472 4 1-5 years 2,317 2,320 1,889 2,328 2,425 3,076 1,848 1,724 3,151 2,845 2,747 2,575 5 5-10 years 1,019 1,148 965 1,275 1,033 955 1,429 919 992 667 1,059 968 6 Over 10 years 229 388 866 1,403 1,368 1,529 1,302 1,221 1,215 973 1,636 1,395 By type of customer 7 U.S. government securities dealers 1,360 1,267 1,135 1,480 1,720 1,613 1,300 1,689 1,295 1,473 1,630 2,036 8 U.S. government securities brokers 3,407 3,709 3,838 4,690 5,580 6,123 4,606 4,516 5,001 5,478 6,053 5,843 9 Commercial banks 2,426 2,295 1,804 1,638 1,836 1,823 1,565 1,548 1,653 1,684 1,842 1,851 10 All others i 3,257 3,568 3,508 4,450 4,342 4,288 4,819 4,193 4,317 4,701 3,998 4,319 11 Federal agency securities.... 1,548 1,729 1,894 2,348 3,230 3,151 2,411 2,009 2,413 3,007 2,807 3,030 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 Aug. Sept. Oct. July 25 Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 Positions2 1111 UUUU....SSSS.... ggggoooovvvveeeerrrrnnnnmmmmeeeennnntttt sssseeeeccccuuuurrrriiiittttiiiieeeessss............ 7,592 5,172 2,656 1,128 866 700 1,632 1,355 2,926 1,275 -120 345 2222 BBBBiiiillllllllssss 6,290 4,772 2,452 1,306 2,476 2,291 2,703 2,336 2,020 1,350 822 815 3333 OOOOtttthhhheeeerrrr wwwwiiiitttthhhhiiiinnnn 1111 yyyyeeeeaaaarrrr 188 99 260 -23 -380 -800 -40 -76 88 -47 -35 -75 4444 1111----5555 yyyyeeeeaaaarrrrssss 515 60 -92 -299 -1,085 -535 -661 -111 314 -420 -1,005 -311 5555 5555----11110000 yyyyeeeeaaaarrrrssss 402 92 40 312 146 17 -13 -150 505 390 294 228 6666 OOOOvvvveeeerrrr 11110000 yyyyeeeeaaaarrrrssss 198 149 -4 -168 -291 -272 -357 -644 -1 2 -196 -313 7777 FFFFeeeeddddeeeerrrraaaallll aaaaggggeeeennnnccccyyyy sssseeeeccccuuuurrrriiiittttiiiieeeessss................ 729 693 606 1,975 2,164 1,809 1,976 1,686 1,941 1,974 2,147 1,944 Financing 3 8888 AAAAllllllll ssssoooouuuurrrrcccceeeessss 8,715 9,877 10,204 16,173 18,057 16,021 16,711 16,269 16,411 15,781 15,969 16,558 CCCCoooommmmmmmmeeeerrrrcccciiiiaaaallll bbbbaaaannnnkkkkssss 9999 NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy 1,896 1,313 599 773 1,292 1,152 1,151 714 1,437 590 1,113 8 1 1 1 1 1 1 1 1 1 1 1 1 0 1 2 0 1 2 0 1 2 0 1 2 AAAA CCCC llll oooo OOOO llll rrrr oooo pppp uuuu tttt oooo tttt hhhh ssss rrrr iiii eeee aaaa dddd rrrr tttt eeee ssss iiii oooo NNNN nnnn eeee ssss1111 wwww YYYYoooorrrrkkkk CCCCiiiittttyyyy............ 3 1 1 , , , 6 4 6 8 7 6 1 9 0 2 4 1 , , , 1 4 9 5 2 8 5 3 7 2 2 5 , , , 1 3 0 7 7 5 4 0 2 2 3 8 , , , 5 9 8 7 6 5 9 2 9 9 3 3 , , , 3 9 5 2 1 1 9 8 7 8 3 3 , , , 4 1 2 3 9 4 1 1 7 9 2 3 , , , 4 3 8 1 1 3 4 4 2 9 2 3 , , , 3 3 8 7 1 6 6 8 0 9 2 3 , , , 0 6 3 0 0 6 9 2 3 4 2 8 , , , 3 8 0 4 0 4 1 4 6 4 2 8 , , , 1 2 4 5 8 2 3 3 0 4 9 2 , , , 1 9 4 3 5 6 7 4 0 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 AAggeennccyy 11997766 11997777 11997788 Mar. Apr. May June July Aug. 1 Federal and federally sponsored agencies1 103,848 112,472 137,063 143,265 145,556 146,429 149,612 152,653 153,788 2 Federal agencies 22,419 22,760 23,488 23,507 23,568 23,366 24,170 24,274 24,415 3 Defense Department2 1,113 983 868 839 822 807 796 787 777 8,574 8,671 8,711 8,326 8,322 8,107 8,806 8,783 8,781 5 Federal Housing Administration5 575 581 588 580 576 568 562 559 552 6 Government National Mortgage Association participation certificates® 4,120 3,743 3,141 3,141 3,099 3,099 3,039 3,004 3,004 7 Postal Service7 2,998 2,431 2,364 2,364 2,364 2,202 2,202 2,202 2,202 8 Tennessee Valley Authority 4,935 6,015 7,460 7,900 7,985 8,155 8,335 8,495 8,655 9 United States Railway Association7 104 336 356 357 400 428 430 444 444 10 Federally sponsored agencies1 81,429 89,712 113,575 119,758 121,988 123,063 125,442 128,379 129,373 11 Federal Home Loan Banks 16,811 18,345 27,563 28,265 28,121 28,577 28,758 29,600 29,994 12 Federal Home Loan Mortgage Corporation.. 1,690 1,686 2,262 2,333 2,330 2,323 2,522 2,522 2,720 13 Federal National Mortgage Association 30,565 31,890 41,080 43,625 44,792 44,639 45,775 46,341 46,108 14 Federal Land Banks 17,127 19,118 20,360 19,275 18,389 18,389 18,389 17,075 17,075 15 Federal Intermediate Credit Banks 10,494 11,174 11,469 7,890 6,994 5,958 5,122 4,269 3,427 16 Banks for Cooperatives 4,330 4,434 4,843 3,351 2,473 1,483 785 785 785 17 Farm Credit Banks1 2,548 5,081 13,987 17,838 20,597 22,949 26,606 28,033 18 Student Loan Marketing Association8 410 515 915 1,030 1,050 1,095 1,140 1,180 1,230 19 Other 2 2 2 2 1 2 2 1 1 MEMO: 20 Federal Financing Bank debt7- 9 28,711 38,580 51,298 55,310 56,610 58,186 60,816 61,798 62,880 Lending to federal and federally sponsored agencies 21 Export-Import Bank4 5,208 5,834 6,898 7,131 7,131 7,131 7,846 7,846 7,846 22 Postal Service7 2,748 2,181 2,114 2,114 2,114 1,952 1,952 1,952 1,952 23 Student Loan Marketing Association8 410 515 915 1,030 1,050 1,095 1,140 1,180 1,230 24 Tennessee Valley Authority 3,110 4,190 5,635 6,075 6,260 6,430 6,610 6,770 66,,993300 104 336 356 357 400 428 430 444 444444 Other lending10 10,750 1166,,009955 23,825 2255,,998855 2266,,889900 28,050 29,200 29,765 30,445 27 Rural Electrification Administration 1,415 2,647 4,604 4,962 5,122 5,253 5,497 5,639 5,754 28 Other 4,966 6,782 6,951 7,656 7,643 7,847 8,141 8,202 8,279 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 • December 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 Apr. May June July Aug. Sept. 1 All issues, new and refunding 1 35,313 46,769 48,607 3,512 3,032 4,578 3,323 4,134 2,416 Type of issue 2 General obligation 18,040 18,042 17,854 1,258 1,137 1,527 786 728 699 17,140 28,655 30,658 2,243 1,893 3,032 2,534 3,396 1,710 133 72 95 11 2 19 3 10 7 Type of issuer 6 State 7,054 6,354 6,632 298 205 642 234 200 113 15,304 21,717 24,156 1,709 1,464 1,911 1,593 2,473 1,375 8 Municipalities, counties, townships, school districts 12,845 18,623 17,718 1,495 1,361 2,005 1,493 1,451 921 32,108 36,189 37,629 3,482 3,023 4,233 3,145 4,070 2,373 Use of proceeds 4,900 5,076 5,003 562 665 527 383 555 217 2,586 2,951 3,460 134 125 278 149 103 35 9,594 8,119 9,026 508 590 981 927 813 374 6,566 8,274 10,494 1,499 582 1,332 1,156 1,704 1,069 483 4,676 3,526 182 399 321 264 406 331 15 Other purposes 7,979 7,093 6,120 597 662 794 266 489 347 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. May June 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 1,336 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 ,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 IItteemm 11997777 11997788 Apr. May June July Aug. Sept. Oct. INVESTMENT COMPANIES1 1 Sales of own shares2 6,401 6,645 594 549 676 744 675 580 617 6,027 7,231 761 715 667 706 832 784 805 3 Net sales 357 -586 -175 -166 9 38 -157 -204 -188 4 Assets4 45,049 44,980 47,142 46,431 48,064 48,771 50,802 50,147 46,271 3,274 4,507 4,862 4,869 5,012 5,052 4,924 5,016 4,521 6 Other 41,775 40,473 42,280 41,562 43,052 43,719 45,878 45,131 41,750 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 1976 1977 1978 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1 Profits before tax 156.0 177.1 206.0 183.0 177.5 207.2 212.0 227.4 233.3 227.9 2 Profits tax liability 63.8 72.6 84.5 75.1 70.8 84.7 87.5 95.1 91.3 88.7 3 Profits after tax 92.2 104.5 121.5 107.9 106.7 122.4 124.5 132.3 142.0 139.3 4 Dividends 37.5 42.1 47.2 43.4 45.1 46.0 47.8 49.7 51.5 52.3 54.7 62.4 74.3 64.5 61.6 76.4 76.8 82.6 90.5 87.0 6 Capital consumption allowances 97.1 109.3 119.8 113.1 116.5 119.1 120.6 123.1 125.5 130.4 151.8 171.7 194.1 177.6 178.1 195.5 197.3 205.7 216.0 217.3 SOURCE. Survey of Current Business (U.S. Department of Commerce.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 DomesticN onfinancial Statistics • December 1979 1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1977 1978 1979 AAccccoouunntt 11997755 11997766 Q3 Q4 Q1 Q2 Q3 Q4 Qi Q2 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 99.1 101.4 451.6 492.7 533.2 546.8 574.2 593.5 626.3 662.2 701.9 723.7 264.2 282.0 306.1 313.7 325.2 337.9 356.2 375.1 392.6 410.5 9 Other 187.4 210.6 227.1 233.1 249.0 255.6 270.0 287.1 309.2 313.1 307.4 333.6 348.6 354.1 350.7 360.7 366.3 365.9 376.7 386.5 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 ait seasonally adjusted annual rates. 1978 1979 IInndduussttrryy 11997777 11997788 Ql Q2 Q3 Q4 Ql Q2 Q3 Q42 135.72 153.60 144.25 150.76 155.41 163.96 165.94 173.48 175.29 179.56 Manufacturing 2 Durable goods industries 27.75 31.59 28.72 31.40 32.25 33.99 34.00 36.86 38.03 40.38 3 Nondurable goods industries 32.33 35.86 32.86 35.80 35.50 39.26 37.56 39.56 40.27 41.58 Nonmanufacturing 4 Mining 4.49 4.81 4.45 4.81 4.99 4.98 5.46 5.31 5.30 5.58 Transportation 5 Railroad 2.82 3.33 3.35 3.09 3.38 3.49 4.02 3.66 4.13 3.92 6 Air . 1.63 2.34 2.67 2.08 2.20 2.39 3.35 3.26 2.92 3.15 7 Other 2.55 2.42 2.44 2.23 2.47 2.55 2.71 2.79 3.24 3.08 Public utilities 8 Electric 21.57 24.71 23.15 23.83 24.92 26.95 27.70 28.06 28.52 27.46 9 Gas and other 4.21 4.72 4.78 4.62 4.70 4.78 4.66 5.18 4.74 5.33 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 28 0 . . 5 2 1 9 \> A4O8 .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 Account 1973 1974 1975 1976 1977 Q3 Q4 Q1 Q2 Q3 ASSETS Accounts receivable, gross 1 Consumer 35.4 36.1 36.0 38.6 44.0 49.7 52.6 54.9 58.7 62.3 2 Business 32.3 37.2 39.3 44.7 55.2 58.3 63.3 66.7 70.1 68.1 3 Total 67.7 73.3 75.3 83.4 99.2 108.0 116.0 121.6 128.8 130.4 4 LESS : Reserves for unearned income and losses. 8.4 9.0 9.4 10.5 12.7 14.3 15.6 16.5 17.7 18.7 5 Accounts receivable, net 59.3 64.2 65.9 72.9 86.5 93.7 100.4 105.1 111.1 111.7 6 Cash and bank deposits 2.6 3.0 2.9 2.6 2.6 2.7 3.5 7 Securities .8 .4 1.0 1.1 .9 1.8 1.3 | 123.8 24.6 25.8 8 All other 10.6 12.0 11.8 12.6 14.3 17.1 17.3 9 Total assets 73.2 79.6 81.6 89.2 104.3 115.3 122.4 128.9 135.8 137.4 LIABILITIES 7.2 9.7 8.0 6.3 5.9 5.4 6.5 6.5 7.3 7.8 19.7 20.7 22.2 23.7 29.6 29.3 34.5 38.1 41.0 39.2 DDeebbtt 4.6 4.9 4.5 5.4 6.2 6.8 8.1 6.7 8.8 9.1 24.6 26.5 27.6 32.3 36.0 41.3 43.6 44.5 46.0 47.5 1144 OOtthheerr 5.6 5.5 6.8 8.1 11.5 15.2 12.6 15.1 14.4 15.4 15 Capital, surplus, and undivided profits 11.5 12.4 12.5 13.4 15.1 17.3 17.2 18.0 18.2 18.4 16 Total liabilities and capital 73.2 79.6 81.6 89.2 104.3 115.3 122.4 128.9 135.8 137.4 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 Sept. 30, 1979 1979 1979 19791 July Aug. Sept. July Aug. Sept. July Aug. Sept. 1 Total 68,054 1,234 251 -1,245 15,453 15,606 15,310 14,219 15,355 16,555 2 Retail automotive (commercial vehicles) 15,288 -25 101 94 1,118 1,239 1,236 1,143 1,138 1,142 3 Wholesale automotive 13,679 526 -583 -1,453 5,804 5,633 5,320 5,278 6,216 6,773 4 Retail paper on business, industrial and farm equipment 17,287 -31 282 135 1,171 1,194 1,172 1,202 912 1,037 5 Loans on commercial accounts receivable 2.. 6 Factored commercial accounts receivable2... } 6,435 -91 97 -281 5,004 5,195 5,369 5,095 5,098 5,650 7 All other business credit 15,365 855 354 260 2,356 2,345 2,213 1,501 1,991 1,953 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 • December 1979 1.55 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1979 Item 1976 1977 1978 May June July Aug. Sept. Oct. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 48.4 54.3 62.6 72.3 73.7 74.3 80.0 75.5 78.8 2 Amount of loan (thousands of dollars) 35.9 40.5 45.9 51.4 52.5 52.7 56.9 53.9 56.5 3 Loan/price ratio (percent) 74.2 76.3 75.3 73.2 73.5 73.0 73.1 73.4 73.5 4 Maturity (years) 27.2 27.9 28.0 28.2 28.4 28.1 28.1 28.6 28.7 5 Fees and charges (percent of loan amount) 2 1.44 1.33 1.39 1.59 1.53 1.63 1.60 1.67 1.68 8.76 8.80 9.30 10.20 10.39 10.49 10.73 10.72 10.88 Yield (percent per annum) 7 8 H FH U L D B s B e r s i e e r s i 4 e s 3 8 8 . . 9 9 9 9 99 8 .. . 00 9 11 5 9 9 . .6 5 8 4 11 1 00 0 .. . 44 8 77 0 11 1 00 0 .. . 66 9 66 0 1 10 0 . . 9 7 5 8 1 1 1 1 . . 0 1 1 0 1 11 1 . . 3 0 5 2 1 1 1 1 . . 1 3 8 5 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series) 5 8.82 8.68 9.70 1100..6611 10.49 10.46 10.58 11.37 n.a. 8.17 8.04 8.98 9.89 9.78 9.77 9.91 10.31 11.25 FNMA auctions7 8.99 8.73 9.77 10.84 10.77 10.66 10.66 11.08 12.52 9.11 8.98 10.01 11.35 11.57 11.52 11.52 11.75 12.85 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 32,904 34,370 43,311 47,757 48,206 48,539 48,909 49,173 49,744 14 FHA-insured 18,916 18,457 21,243 23,008 23,204 23,378 23,526 n.a. n.a. 15 VA-guaranteed 9,212 9,315 10,544 10,543 10,502 10,450 10,386 n.a. n.a. 16 Conventional 4,776 6,597 11,524 14,206 14,500 14,710 14,997 15,203 15,517 Mortgage transactions (during period) 17 Purchases 3,606 4,780 12,303 1,023 739 602 646 545 859 18 Sales 86 67 5 0 0 0 0 0 0 Mortgage commitments8 19 Contracted (during period) 6,247 9,729 18,960 1,400 634 354 593 1,407 n.a. 20 Outstanding (end of period) 3,398 4,698 9,201 6,862 6,476 5,912 5,692 6,352 n.a. Auction of 4-month commitments to buy Government-underwritten loans 21 Offered* 4,929.8 7.974.1 12,978 426.3 219.9 133.2 162.3 1,421.1 2,943.4 22 Accepted 2,787.2 4.846.2 6,747.2 185.0 99.9 69.6 82.7 599.9 1,130.4 Conventional loans 23 Offered9 2,595.7 5,675.2 9,933.0 458.6 357.5 93.5 245.9 527.3 1,049.9 24 Accepted 1,879.2 3,917.8 5,110.9 214.3 195.3 69.9 184.1 325.6 431.2 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)™ 25 Total 4,269 3,276 3,064 3.310 3,334 3,487 '3,549 3,729 3,726 26 FHA/VA 1,618 1,395 1,243 1,186 1,171 1,156 1,145 1,132 1,120 27 Conventional 2,651 1,881 1,822 2,124 2,163 2,331 ••2,404 2,597 2,606 Mortgage transactions (during period) 28 Purchases 1,175 3,900 6,524 560 447 518 636 537 552 29 Sales 1,396 4,131 6,211 572 382 321 554 347 530 Mortgage commitments11 30 Contracted (during period) 1,477 5,546 7,451 652 528 528 655 437 504 31 Outstanding (end of period) 333 1,063 1,410 1,541 1,590 1,572 1,536 1,400 1,312 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 11997766 1977 1978 Q3 Q4 Q1 Q2 Q3 1 All holders 889,327 1,023,505 1,172,502 a, 133,503 '1, 172,737 r1,206,280 '1,252,519 1,295,449 2 1- to 4-family 556,557 656,566 761,905 r734,709 '761,892 '"784,602 '817,018 842,284 3 Multifamily 104,516 111,841 122,004 '119,381 r121,978 '•123,970 '125,923 129,079 4 Commercial 171,223 189,274 212,597 r205,629 '212,743 '217,501 '224,507 232,084 5 Farm 57,031 65,824 75,996 r73,784 r76,124 r80,207 '85,071 89,002 6 Major financial institutions 647,650 745,011 847,910 r821,988 r848,145 866,036 '894,471 919,984 7 Commercial banks1 151,326 178,979 213,963 205,445 213,963 220,063 229,564 239,363 8 1- to 4-family 86,234 105,115 126,966 121,911 126,966 130,585 136,223 142,038 9 Multifamily 8,082 9,215 10,912 10,478 10,912 11,223 11,708 12,208 10 Commercial 50,289 56,898 67,056 64,386 67,056 68,968 71,945 75,016 11 Farm 6,721 7,751 9,029 8,670 9,029 9,287 9,688 10,101 12 Mutual savings banks 81,639 88,104 95,157 93,403 95,157 96,136 97,155 97,929 13 1-to 4-family 53,089 57,637 62,252 61,104 62,252 62,892 63,559 64,065 14 Multifamily 14,177 15,304 16,529 16,224 16,529 16,699 16,876 17,010 15 Commercial 14,313 15,110 16,319 16,019 16,319 16,488 16,663 16,795 16 Farm 60 53 57 56 57 57 58 59 17 Savings and loan associations 323,130 381,163 432,858 420,971 432,858 441,420 456,629 468,324 18 1- to 4-family 260,895 310,686 356,156 345,617 356,156 363,774 377,587 387,257 19 Multifamily 28,436 32,513 36,057 35,362 36,057 36,682 37,078 38,028 20 Commercial 33,799 37,964 40,645 39,992 40,645 40,964 41,964 43,039 21 Life insurance companies 91,555 96,765 105,932 r102,169 rl06,167 108,417 111,123 114,368 22 1- to 4-family 16,088 14,727 14,449 '14,158 '14,436 14,507 14,489 14,884 23 Multifamily 19,178 18,807 19,026 r18,742 r19,000 19,080 19,102 19,107 24 Commercial 48,864 54,388 62,086 r59,153 r62,232 63,908 66,055 68,513 25 Farm 7,425 8,843 10,371 r10,116 M0,499 10,922 11,477 11,864 26 Federal and related agencies 66,753 70,006 81,853 78,672 81,853 86,689 90,095 93,143 27 Government National Mortgage Assn. 4,241 3,660 3,509 3,560 3,509 3,448 3,425 3,382 28 1- to 4-family 1,970 1,548 877 897 877 821 800 780 29 Multifamily 2,271 2,112 2,632 2,663 2,632 2,627 2,625 2,602 30 Farmers Home Administration.. 1,064 1,353 926 1,384 926 956 1,200 1,383 31 1- to 4-family 454 626 288 460 288 302 363 163 32 Multifamily 218 275 320 240 320 180 75 299 33 Commercial 72 149 101 251 101 283 278 262 34 Farm 320 303 217 433 217 191 484 659 35 Federal Housing and Veterans Admin. 5,150 5,212 5,419 5,295 5,419 5,522 5,597 5,672 36 1- to 4-family 1,676 1,627 1,641 1,565 1,641 1,693 1,744 1,795 37 Multifamily 3,474 3,585 3,778 3,730 3,778 3,829 3,853 3,877 32,904 34,369 43,311 41,189 43,311 46,410 48,206 49,173 39 1- to 4-family 26,934 28,504 37,579 35,437 37,579 40,702 42,543 43,534 40 Multifamily 5,970 5,865 5,732 5,752 5,732 5,708 5,663 5,639 41 Federal Land Banks. 19,125 22,136 25,624 24,758 25,624 26,893 28,459 29,804 42 1- to 4-family 601 670 927 819 927 1,042 1,198 1,374 43 Farm 18,524 21,466 24,697 23,939 24,697 25,851 27,261 28,430 44 Federal Home Loan Mortgage Corp... 4,269 3,276 3,064 2,486 3,064 3,460 3,208 3,729 45 1- to 4-family 3,889 2,738 2,407 1,994 2,407 2,685 2,489 2,850 46 Multifamily 380 538 657 492 657 775 719 879 47 Mortgage pools or trusts2 49,801 70,289 88,633 82,730 88,633 94,551 '102,259 110,648 48 Government National Mortgage Assn. 30,572 44,896 24,347 50,844 54,347 57,955 '63,000 69,357 49 1- to 4-family 29,583 43,555 52,732 49,276 52,732 56,269 '^1,246 67,535 50 Multifamily 989 1,341 1,615 1,568 1,615 1,686 '1,754 1,822 51 Federal Home Loan Mortgage Corp... 2,671 6,610 11,892 10,511 11,892 12,467 13,708 14,421 52 1- to 4-family 2,282 5,621 9,657 8,616 9,657 10,088 11,096 11,568 53 Multifamily 389 989 2,235 1,895 2,235 2,379 2,612 2,853 54 Farmers Home Administration 16,558 18,783 22,394 21,375 22,394 24,129 25,551 26,870 55 1- to 4-family 10,219 11,379 13,400 12,851 13,400 13,883 14,329 14,972 56 Multifamily 532 759 1,116 1,116 1,116 1,465 1,764 1,763 57 Commercial 2,440 2,945 3,560 3,369 3,560 3,660 3,833 4,054 58 Farm 3,367 3,682 4,318 4,039 4,318 5,121 5,625 6,081 59 Individuals and others3 125,123 138,199 154,106 150,113 154,106 158,014 '165,694 171,674 60 1-to 4-family 62,643 72,115 82,574 80,004 82,574 85,056 '89,352 92,469 61 Multifamily 20,420 20,538 21,395 21,119 21,395 21,670 '22,094 22,992 62 Commercial 21,446 21,820 212,830 22,459 22,830 23,292 '23,770 24,405 63 Farm 20,614 23,726 27,307 26,531 27,307 27,996 '30,478 31,808 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 • December 1979 1.57 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change Millions of dollars 1979 Holder, and type of credit 1976 1977 1978 Apr. May June July Aug. Sept. Oct. Amounts outstanding (end of period) 1 Total 193,977 230,829 275,629 282,575 287,315 291,856 295,052 299,813 303,902 305,217 By major holder 2 Commercial banks 93,728 112,373 136,189 139,843 142,102 144,035 145,169 147,312 148,657 149,152 3 Finance companies 38,919 44,868 54,298 58,334 59,635 60,996 62,463 63,362 64,822 65,692 4 Credit unions 31,169 37,605 45,939 46,322 46,832 47,478 47,772 48,631 49,214 48,770 5 Retailers2 19,260 23,490 24,876 23,097 23,421 23,672 23,713 24,114 24,446 24,860 6 Savings and loans 6,246 7,354 8,394 8,833 9,066 9,290 9,425 9,760 9,972 10,073 7 Gasoline companies 2,830 2,963 3,240 3,383 3,537 3,704 3,872 4,048 4,244 4,174 8 Mutual savings banks.. 1,825 2,176 2,693 2,763 2,722 2,681 2,638 2,586 2,547 2,496 By major type of credit 9 Automobile 67,707 82,911 102,468 107,186 109,211 110,930 111,952 113,351 114,765 114,876 10 Commercial banks.., 39,621 49,577 60,564 62,866 63,891 64,480 64,826 65,389 65,813 65,973 11 Indirect paper 22,072 27,379 33,850 35,322 35,917 36,251 36,475 36,887 37,267 37,469 12 Direct loans 17,549 22,198 26,714 27,544 27,974 28,229 28,351 28,502 28,546 28,504 13 Credit unions 15,238 18,099 21,967 22,150 22,394 22,703 22,844 23,255 23,534 23,322 14 Finance companies.., 12,848 15,235 19,937 22,170 22,926 23,747 24,282 24,707 25,418 25,581 15 Revolving 17,189 3399,,227744 4477,,005511 4455,,778811 4466,,448899 4477,,445588 4477,,889944 4499,,227700 5500,,442222 5500,,888833 16 Commercial banks.. 14,359 1188,,337744 2244,,443344 2244,,776677 2255,,005544 2255,,665522 2255,,992277 2266,,778822 2277,,444466 2277,,660000 17 Retailers 1177,,993377 1199,,337777 1177,,663311 1177,,889988 1188,,110022 1188,,009955 1188,,444400 1188,,773322 1199,,110099 18 Gasoline companies. 2,830 22,,996633 33,,224400 33,,338833 33,,553377 33,,770044 33,,887722 44,,004488 44,,224444 44,,117744 19 Mobile home 14,573 15,141 16,042 16,198 16,453 16,607 16,719 16,972 17,105 17,244 20 Commercial banks. 8,737 9,124 9,553 9,549 9,702 9,759 9,801 9,912 9,940 10,013 21 Finance companies. 3,263 3,077 3,152 3,159 3,177 3,191 3,212 3,231 3,258 3,295 22 Savings and loans.. 2,241 2,538 2,848 2,997 3,076 3,152 3,198 3,312 3,384 3,418 23 Credit unions 332 402 489 493 498 505 508 517 523 518 24 Other 94,508 93,503 110,068 113,410 115,162 116,861 118,487 120,220 121,610 122,214 25 Commercial banks 31,011 35,298 41,638 42,661 43,455 44,144 44,615 45,229 45,458 45,566 26 Finance companies 22,808 26,556 31,209 33,005 33,532 34,058 34,969 35,424 36,146 36,816 27 Credit unions 15,599 19,104 23,483 23,679 23,940 24,270 24,420 24,859 25,157 24,930 28 Retailers 19,260 5,553 5,499 5,466 5,523 5,570 5,618 5,674 5,714 5,751 29 Savings and loans 4,005 4,816 5,546 5,836 5,990 6,138 6,227 6,448 6,588 6,655 30 Mutual savings banks. 1,825 2,176 2,693 2,763 2,722 2,681 2,638 2,586 2,547 2,496 Net change (during period) 3 31 Total 21,647 35,278 44,810 4,105 3,306 2,558 2,443 2,446 4,446 2,186 By major holder 32 Commercial banks 10,792 18,645 23,813 2,117 1,665 984 662 866 1,521 771 33 Finance companies 2,946 5,948 9,430 1,378 893 913 1,185 549 1,773 ,076 34 Credit unions 5,503 6,436 8,334 139 124 144 342 391 411 -152 35 Retailers i 1,059 2,654 1,386 306 283 288 180 332 443 335 36 Savings and loans 1,085 1,111 1,041 158 280 240 120 253 207 76 37 Gasoline companies 124 132 276 73 96 39 2 116 127 122 38 Mutual savings banks.. 138 352 530 -66 -35 -50 -48 -61 -36 -42 By major type of credit 39 Automobile 10,465 15,204 19,557 1,387 1,225 690 616 594 1,823 487 40 Commercial banks.., 6,334 9,956 10,987 740 633 123 72 172 762 203 41 Indirect paper 2,742 5,307 6,471 482 389 87 51 188 542 237 42 Direct loans 3,592 4,649 4,516 258 244 36 21 -16 220 -34 43 Credit unions 2,497 2,861 3,868 64 60 45 183 177 218 -79 44 Finance companies.., 1,634 2,387 4,702 583 532 522 361 245 843 363 45 Revolving 2,170 6,248 7,776 918 749 796 429 787 1,057 664 46 Commercial banks.. 2,046 4,015 6,060 605 418 494 303 365 546 253 47 Retailers 2,101 1,440 240 235 263 124 306 384 289 48 Gasoline companies. 124 132 276 73 96 39 2 116 127 122 49 Mobile home 140 565 897 82 234 102 72 182 89 150 50 Commercial banks. 70 387 426 21 125 12 17 59 10 105 51 Finance companies. -182 -189 74 6 13 14 11 13 17 27 52 Savings and loans.. 192 297 310 56 94 74 41 106 57 21 53 Credit unions 60 70 87 -1 2 2 3 4 5 -3 54 Other 8,872 13,261 16,580 1,718 1,098 970 1,326 883 1,477 885 55 Commercial banks 2,342 4,287 6,340 751 489 355 270 270 203 210 56 Finance companies 1,494 3,750 4,654 789 348 377 813 291 913 686 57 Credit unions 2,946 3,505 4,379 76 62 97 156 210 188 -70 5 5 8 9 S R a e v ta in il g e s r s a nd loans 1,0 8 5 9 9 3 5 8 5 1 3 4 - 7 5 3 4 1 1 6 0 6 2 1 4 8 8 6 1 2 6 5 6 7 5 9 6 1 2 47 6 1 5 5 9 0 4 5 6 5 60 Mutual savings banks. 138 352 530 -66 -35 -50 -48 -61 -36 -42 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 Apr. May June July Aug. Sept. Extensions2 1 Total. 211,028 254,071 298,351 27,009 27,901 26,139 26,848 27,583 28,634 27,695 By major holder 2 Commercial banks 97,397 117,896 142,720 13,111 13,400 12,278 12,292 12,700 13,172 12,718 3 Finance companies 36,129 41,989 50,505 5,239 5,186 4,641 5,353 5,133 5,489 5,642 4 Credit unions 29,259 34,028 40,023 2,753 3,124 2,986 3,282 3,361 3,363 2,942 5 Retailers1 29,447 39,133 41,619 3,742 3,721 3,853 3,687 3,921 4,082 3,930 6 Savings and loans 3,898 4,485 5,050 559 723 682 592 728 678 571 7 Gasoline companies 13,387 14,617 16,125 1,505 1,613 1,589 1,525 1,640 1,734 1,773 8 Mutual savings banks... 1,511 1,923 2,309 100 134 110 117 100 116 119 By major type of credit 9 Automobile 63,743 75,641 88,987 7,999 8,260 7,178 7,447 7,667 8,430 7,676 10 Commercial banks.. . 37,886 46,363 53,028 4,707 4,680 3,952 3,936 4,085 4,544 4,185 11 Indirect paper 20,576 25,149 29,336 2,635 2,684 2,146 2,151 2,276 2,569 2,376 12 Direct loans 17,310 21,214 23,692 2,072 1,996 1,806 1,785 1,809 1,975 1,809 13 Credit unions 14,688 16,616 19,486 1,415 1,566 1,485 1,611 1,661 1,655 1,434 14 Finance companies... 11,169 12,662 16,473 1,877 2,014 1,741 1,900 1,921 2,231 2,057 15 Revolving 43,934 86,756 110044,,558877 99,,772222 1100,,003399 1100,,113366 99,,885566 1100,,337711 10,699 10,424 16 Commercial banks.. 30,547 38,256 5511,,553311 44,,992233 55,,115544 55,,116666 55,,007788 55,,228800 5,398 5,165 17 Retailers 33,883 3366,,993311 33,,229944 33,,227722 33,,338811 33,,225533 33,,445511 3,567 3,486 18 Gasoline companies. 13,387 14,617 1166,,112255 11,,550055 11,,661133 11,,558899 11,,552255 11,,664400 1,734 1,773 19 Mobile home 4,859 5,425 6,067 510 668 547 519 655 531 582 20 Commercial banks. 3,064 3,466 3,704 304 411 304 297 362 294 374 21 Finance companies. 702 643 886 59 58 59 71 67 69 83 22 Savings and loans.. 929 1,120 1,239 134 182 167 133 206 148 114 23 Credit unions 164 196 238 13 17 17 18 20 20 11 24 Other 98,492 86,249 98,710 8,778 8,934 8,278 9,026 8,890 8,974 9,013 25 Commercial banks 25,900 29,811 34,457 3,177 3,155 2,856 2,981 2,973 2,936 2,994 26 Finance companies 24,258 28,684 33,146 3,303 3,114 2,841 3,382 3,145 3,189 3,502 27 Credit unions 14,407 17,216 20,299 1,325 1,541 1,484 1,653 1,680 1,688 1,497 28 Retailers 29,447 5,250 4,688 448 449 472 434 470 515 444 29 Savings and loans 2,969 3,365 3,811 425 541 515 459 522 530 457 30 Mutual savings banks. 1,511 1,923 2,309 100 134 110 117 100 116 119 Liquidations2 31 Total. 189,381 218,793 253,541 22,904 24,595 23,581 24,405 25,137 24,188 25,509 By major holder 32 Commercial banks 86,605 99,251 118,907 10,994 11,735 11,294 11,630 11,834 11,651 11,947 33 Finance companies 33,183 36,041 41,075 3,861 4,293 3,728 4,168 4,584 3,716 4,566 34 Credit unions 23,756 27,592 31,689 2,614 3,000 2,842 2,940 2,970 2,952 3,094 35 Retailers i 28,388 36,479 40,233 3,436 3,438 3,565 3,507 3,589 3,639 3,595 36 Savings and loans 2,813 3,374 4,009 401 443 442 472 475 471 495 37 Gasoline companies 13,263 14,485 15,849 1,432 1,517 1,550 1,523 1,524 1,607 1,651 38 Mutual savings banks.. 1,373 1,571 1,779 166 169 160 165 161 152 161 By major type of credit 39 Automobile 53,278 60,437 69,430 6,612 7,035 6,488 6,831 7,073 6,607 7,189 40 Commercial banks.., 31,552 36,407 42,041 3,967 4,047 3,829 3,864 3,913 3,782 3,982 41 Indirect paper 17,834 19,842 22,865 2,153 2,295 2,059 2,100 2,088 2,027 2,139 42 Direct loans 13,718 16,565 19,176 1,814 1,752 1,770 1,764 1,825 1,755 1,843 43 Credit unions 12,191 13,755 15,618 1,351 1,506 1,440 1,428 1,484 1,437 1,513 44 Finance companies... 9,535 10,275 11,771 1,294 1,482 1,219 1,539 1,676 1,388 1,694 45 Revolving 41,764 80,508 96,811 8,804 9,290 9,340 9,427 9,584 9,642 9,760 46 Commercial banks.. 28,501 34,241 45,471 4,318 4,736 4,672 4,775 4,915 4,852 4,912 47 Retailers 31,782 35,491 3,054 3,037 3,118 3,129 3,145 3,183 3,197 48 Gasoline companies. 13,263 14,485 15,849 1,432 1,517 1,550 1,523 1,524 1,607 1,651 49 Mobile home 4,719 4,860 5,170 428 434 445 447 473 442 432 50 Commercial banks. 2,994 3,079 3,278 283 286 292 280 303 284 269 51 Finance companies. 884 832 812 53 45 45 60 54 52 56 52 Savings and loans.. 737 823 929 78 88 93 92 100 91 93 53 Credit unions 104 126 151 14 15 15 15 16 15 14 54 Other 89,620 72,988 82,130 7,060 7,836 7,308 7,700 8,007 7,497 8,128 55 Commercial banks 23,558 25,524 28,117 2,426- 2,666 2,501 2,711 2,703 2,733 2,784 56 Finance companies 22,764 24,934 28,492 2,514 2,766 2,464 2,569 2,854 2,276 2,816 57 Credit unions 11,461 13,711 15,920 1,249 1,479 1,387 1,497 1,470 1,500 1,567 58 Retailers 28,388 4,697 4,742 382 401 447 378 444 456 398 59 Savings and loans 2,076 2,551 3,080 323 355 349 380 375 380 402 60 Mutual savings banks. 1,373 1,571 1,779 166 169 160 165 161 152 161 1 Includes auto dealers and excludes 30-day charge credit held by 2 Monthly figures are seasonally adjusted, travel and entertainment companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic NonfinancialS tatistics • December 1979 1.59 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1976 1977 1978 1979 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 1973 1974 1975 1976 1977 1978 H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total funds raised 203.1 191.3 210.8 271.9 338.5 400.3 274.9 298.1 378.9 384.5 416.1 386.5 2 Excluding equities 195.4 187.4 200.7 261.1 335.4 398.2 266.8 296.9 373.8 387.1 409.3 383.8 By sector and instrument 8.3 11.8 85.4 69.0 56.8 53.7 61.4 46.1 67.4 61.4 46.0 27.1 7.9 12.0 85.8 69.1 57.6 55.1 61.8 46.7 68.6 62.3 47.9 29.4 .4 -.2 -.4 -.1 -.9 -1.4 -.3 -.6 -1.2 -.9 -1.9 -2.3 194.9 179.5 125.4 202.9 281.8 346.6 213.4 252.0 311.5 323.1 370.2 359.4 7.7 3.8 10.1 10.8 3.1 2.1 8.1 1.2 5.1 -2.6 6.8 2.7 8 Debt instruments 187.2 175.6 115.3 192.0 278.6 344.5 205.4 250.8 306.4 325.7 363.4 356.7 9 Private domestic nonfinancial sectors. . • • 188.8 164.1 112.1 182.0 267.9 314.4 192.3 241.5 294.2 302.5 326.3 344.1 10 7.9 4.1 9.9 10.5 2.7 2.6 7.7 .5 4.9 -1.8 7.0 2.8 11 Debt instruments 180.9 160.0 102.1 171.5 265.1 311.8 184.6 241.0 289.3 304.3 319.2 341.3 12 Debt capital instruments 105.1 98.0 98.4 123.5 175.6 196.6 126.5 158.7 192.5 188.0 205.1 204.8 13 State and local obligations 14.7 16.5 16.1 15.7 23.7 28.3 10.9 22.3 25.0 27.8 28.7 17.5 14 9.2 19.7 27.2 22.8 21.0 20.1 22.9 16.6 25.4 20.6 19.6 23.7 15 46.4 34.8 39.5 63.7 96.4 104.5 70.0 89.7 103.1 99.8 109.2 112.7 16 Multifamily residential 10.4 6.9 * 1.8 7.4 10.2 3.1 6.4 8.4 9.3 11.2 8.2 17 18.9 15.1 11.0 13.4 18.4 23.3 12.5 14.8 21.9 21.2 25.4 25.8 18 5.5 5.0 4.6 6.1 8.8 10.2 7.3 9.0 8.7 9.3 11.1 17.1 19 Other debt instruments 75.8 62.0 3.8 48.0 89.5 115.2 58.0 82.3 96.7 116.3 114.1 136.5 20 26.0 9.9 9.7 25.6 40.6 50.6 27.6 36.6 44.5 50.1 51.0 47.7 21 37.1 31.7 -12.3 4.0 27.0 37.3 10.8 27.3 26.7 43.1 31.4 48.9 22 2.5 6.6 -2.6 4.0 2.9 5.2 2.3 3.4 2.4 5.3 5.1 10.8 23 Other 10.3 13.7 9.0 14.4 19.0 22.2 17.4 14.9 23.2 17.8 26.5 29.1 24 By borrowing sector 188.8 164.1 112.1 182.0 267.9 314.4 192.3 241.5 294.2 302.5 326.3 344.1 25 State and local governments 13.2 15.5 13.7 15.2 20.4 23.6 11.7 15.7 25.0 21.0 26.1 14.6 26 80.1 51.2 49.5 90.7 139.9 162.6 98.8 129.4 150.4 156.1 169.1 168.5 27 9.6 8.0 8.8 10.9 14.7 18.1 11.9 15.7 13.8 15.3 20.8 23.2 28 Nonfarm noncorporate 13.0 7.7 2.0 5.4 12.5 15.7 5.8 13.4 12.5 16.3 14.5 15.1 29 73.0 81.7 38.1 59.8 80.3 94.5 64.1 67.3 92.4 93.7 95.8 122.7 30 6.1 15.4 13.3 20.8 13.9 32.3 21.1 10.5 17.3 20.6 43.9 15.3 31 -.2 -.2 .2 .3 .4 -.5 .3 .6 .2 -.8 -.2 —. l 32 6.3 15.7 13.2 20.5 13.5 32.8 20.8 9.9 17.1 21.4 44.1 15.4 33 1.0 2.1 6.2 8.6 5.1 4.0 9.7 4.4 5.7 5.0 3.0 3.5 34 2.7 4.7 3.9 6.8 3.1 18.3 5.1 -.4 6.5 9.3 27.3 2.8 35 .9 7.3 .3 1.9 2.4 6.6 2.4 2.7 2.2 3.6 9.6 6.1 36 U.S. government loans 1.7 1.6 2.8 3.3 3.0 3.9 3.6 3.1 2.9 3.6 4.2 3.1 Financial sectors 44.8 39.2 12.7 24.1 54.0 81.4 28.5 47.7 60.3 80.7 82.1 90.9 By instrument 19.9 23.1 13.5 18.6 26.3 41.4 20.7 22.6 29.9 38.5 44.3 48.0 39 Sponsored credit agency securities 16.3 16.6 2.3 3.3 7.0 23.1 4.3 7.1 6.8 21.9 24.3 21.4 40 3.6 5.8 10.3 15.7 20.5 18.3 17.2 17.9 23.1 16.6 20.1 26.6 41 Loans from U.S. government 0 .7 .9 -.4 -1.2 0 -.7 -2.3 0 0 0 0 24.9 16.2 -.8 5.5 27.7 40.0 7.8 25.1 30.4 42.2 37.8 42.9 43 1.5 .3 .6 1.0 .9 1.7 2.3 .9 .8 2.2 1.1 2.3 44 23.4 15.9 -1.4 4.4 26.9 38.3 5.6 24.2 29.6 40.0 36.7 40.5 45 3.5 2.1 2.9 5.8 10.1 7.5 5.1 10.2 10.1 8.5 6.4 10.1 46 -1.2 -1.3 2.3 2.1 3.1 .9 2.8 3.1 3.0 2.1 -.3 -.4 47 9.0 4.6 -3.7 -3.7 -.3 2.8 -5.3 -1.8 1.2 2.5 3.1 -1.4 48 Open market paper and RPs 4.9 3.8 1.1 2.2 9.6 14.6 5.0 9.8 9.5 13.5 15.7 24.5 49 7.2 6.7 -4.0 -2.0 4.3 12.5 -2.0 2.9 5.8 13.2 11.8 7.7 By sector 16.3 17.3 3.2 2.9 5.8 23.1 3.5 4.7 6.8 21.9 24.3 21.4 51 3.6 5.8 10.3 15.7 20.5 18.3 17.2 17.9 23.1 16.6 20.1 26.6 52 24.9 16.2 -.8 5.5 27.7 40.0 7.8 25.1 30.4 42.2 37.8 42.9 53 1.2 1.2 1.2 2.3 1.1 1.3 2.1 .8 1.5 1.5 1.1 1.1 54 2.2 3.5 .3 -.8 1.3 6.7 -.3 1.3 1.2 5.8 7.6 6.2 55 Savings and loan associations 6.0 4.8 -2.3 . 1 9.9 14.3 .3 8.3 11.5 16.4 12.2 10.4 56 .5 .9 1.0 .9 .9 1.1 .9 .9 1.0 1.0 1.1 1.0 57 9.5 6.0 .5 6.4 17.6 18.6 7.2 16.7 18.5 18.9 18.2 24.7 58 REITs 6.5 .6 -1.4 -2.4 -2.2 -1.0 -2.7 -2.4 -2.0 -1.0 -1.0 -.4 59 Open-end investment companies -1.2 -.7 -.1 -1.0 -.9 -1.0 .4 -.6 -1.3 -.5 -1.5 -.3 All sectors 60 Total funds raised, by instrument 248.0 230.5 223.5 296.0 392.5 481.7 303.4 345.8 439.2 465.2 498.3 477.4 _ 7 — 1 0 — 9 — 1 0 4 — 6 — 1 3 _ 5 — 1.5 _ 3 62 Other corporate equities 10.4 4.8 10! 8 12^9 4^9 4.1 9^9 2.6 7.'2 !l 9^4 5.3 63 238.8 226.4 212.8 284.1 388.5 478.0 293.1 343.8 433.3 465.6 490.4 472.4 64 28.3 34.3 98.2 88.1 84.3 95.2 82.9 71.2 97.4 100.0 90.4 75.3 65 State and local obligations 14.7 16.5 16.1 15.7 23.7 28.3 10.9 22.3 25.0 27.8 28.7 17.5 66 13.6 23.9 36.4 37.2 36.1 31.6 37.7 31.2 41.1 34.2 29.1 37.2 67 79.9 60.5 57.2 87.1 134.0 149.0 95.5 122.9 145.1 141.6 156.4 163.2 68 Consumer credit 26.0 9.9 9.7 25.6 40.6 50.6 27.6 36.6 44.5 50.1 51.0 47.7 69 Bank loans n.e.c 48.8 41.0 -12.2 7.0 29.8 58.4 10.6 25.1 34.4 54.9 61.8 50.3 70 Open market paper and RPs 8.3 17.7 -1.2 8.1 15.0 26.4 9.6 15.9 14.0 22.4 30.4 41.3 71 Other loans 19.1 22.7 8.7 15.3 25.2 38.6 18.2 18.5 31.8 34.6 42.5 39.9 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 1979 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997733 11997744 11997755 11997766 11997777 11997788 H2 HI H2 HI H2 HI 1 Total funds advanced in credit markets to nonfinancial sectors 195.4 187.4 200.7 261.1 335.4 398.2 266.8 296.9 373.8 387.1 409.3 383.8 By public agencies and foreign 2 Total net advances 31.8 53.7 44.6 54.3 85.1 109.7 60.3 66. 1 104.2 102.8 116.6 47.3 3 U.S. government securities 9.5 11.9 22.5 26.8 40.2 43.9 30.2 27.1 53.3 43.7 44.0 -27.4 4 Residential mortgages 8.2 14.7 16.2 12.8 20.4 26.5 14.7 18.9 22.0 22.2 30.7 36.2 5 FHLB advances to S&Ls 7.2 6.7 -4.0 -2.0 4.3 12.5 -2.0 2.9 5.8 13.2 11.8 7.7 6 Other loans and securities 6.9 20.5 9.8 16.6 20.2 26.9 17.4 17.2 23.1 23.7 30.1 30.7 Totals advanced, by sector 7 U.S. government 2.8 9.8 15.1 8.9 11.8 20.4 11.9 5.9 17.8 19.4 21.4 24.4 8 Sponsored credit agencies 19.1 26.5 14.8 20.3 26.8 44.6 22.2 21.6 32.0 39.4 49.8 52.9 9 Monetary authorities 9.2 6.2 8.5 9.8 7.1 7.0 6.2 10.2 4.0 13.4 .5 -.6 10 Foreign .6 11.2 6.1 15.2 39.4 37.7 20.0 28.3 50.4 30.6 44.9 -29.5 11 Agency borrowing not included in line 1.. 19.9 23.1 13.5 18.6 26.3 41.4 20.7 22.6 29.9 38.5 44.3 48.0 Private domestic funds advanced 12 Total net advances 183.6 156.8 169.7 225.4 276.5 330.0 227.2 253.5 299.6 322.8 337.1 384.6 13 U.S. government securities 18.8 22.4 75.7 61.3 44.1 51.3 52.7 44.1 44.1 56.3 46.4 102.6 14 State and local obligations 14.7 16.5 16.1 15.7 23.7 28.3 10.9 22.3 25.0 27.8 28.7 17.5 15 Corporate and foreign bonds 10.0 20.9 32.8 30.5 22.5 22.5 31.8 18.0 27.0 24.1 20.9 28.4 16 Residential mortgages 48.4 26.9 23.2 52.7 83.3 88.2 58.2 77.1 89.4 86.7 89.6 84.5 17 Other mortgages and loans 98.8 76.8 17.9 63.3 107.3 152.2 71.6 94.9 119.7 141.1 163.3 159.3 18 LESS : FHLB advances 7.2 6.7 -4.0 -2.0 4.3 12.5 -2.0 2.9 5.8 13.2 11.8 7.7 Private financial intermediation 19 Credit market funds advanced by private financial institutions 161.3 125.5 122.5 190.3 255.9 296.9 202.2 249.1 265.0 301.7 292.0 324.4 20 Commercial banking 84.6 66.6 29.4 59.6 87.6 128.7 68.3 84.6 90.7 132.5 125.0 131.4 21 Savings institutions 35.1 24.2 53.5 70.8 82.0 75.9 70.4 81.4 82.6 75.8 75.9 59.3 22 Insurance and pension funds 23.7 29.8 40.6 49.9 67.9 73.5 47.9 65.2 70.6 76.9 70.2 81.3 23 Other finance 17.9 4.8 -1.0 10.0 18.4 18.7 15.5 18.0 21.2 16.6 20.9 52.4 24 Sources of funds 161.3 125.5 122.5 190.3 255.9 296.9 202.2 249.1 265.0 301.7 292.0 324.4 25 Private domestic deposits 97.3 67.5 92.0 124.6 141.2 142.5 132.4 138.6 143.8 138.3 146.7 111.8 26 Credit market borrowing 23.4 15.9 -1.4 4.4 26.9 38.3 5.6 24.2 29.6 40.0 36.7 40.5 27 Other sources 40.6 42.1 32.0 61.3 87.8 116.0 64.2 86.2 91.7 123.5 108.6 172.1 28 Foreign funds 3.0 10.3 -8.7 -4.6 1.2 6.3 -2.8 1.6 .8 5.7 6.9 52.2 29 Treasury balances -1.0 -5.1 -1.7 —. 1 4.3 6.8 -3.9 . 1 8.5 1.9 11.6 5.5 30 Insurance and pension reserves 18.4 26.2 29.7 34.5 49.4 62.7 33.2 45.3 53.4 66.2 59.2 60.8 31 Other, net 20.2 10.6 12.7 31.4 32.9 40.3 37.8 39.3 29.0 49.6 31.0 53.6 Private domestic nonfinancial investors 32 Direct lending in credit markets 4455..77 4477..22 4455..88 3399..55 47.5 7711..44 30.6 28.6 64.1 61.1 81.7 100.7 33 U.S. government securities 18.8 18.9 24.1 16.1 23.0 33.2 11.0 11.9 34.2 32.1 34.4 66.5 34 State and local obligations 5.4 9.3 8.4 3.8 2.6 4.5 -1.5 -.5 5.7 7.0 2.0 -3.0 35 Corporate and foreign bonds 2.0 5.1 8.4 5.8 -3.3 -1.4 6.0 —. 1 -6.5 -3.7 1.0 3.8 36 Commercial paper 9.8 5.8 -1.3 1.9 9.5 16.3 1.6 8.2 10.8 8.2 24.4 9.4 37 Other 9.7 8.0 6.2 11.8 15.7 18.7 13.5 9.2 19.9 17.5 20.0 24.1 38 Deposits and currency 101.2 73.8 98.1 131.9 149.5 151.8 141.0 144.5 154.5 148.7 154.8 121.8 39 Security RPs 11.0 -2.2 .2 2.3 2.2 7.5 3.2 4.3 .2 9.8 5.1 10.5 40 Money market fund shares 2.4 1.3 * .2 6.9 .5 — 5 .9 6.1 7.7 30.2 41 Time and savings accounts 75.7 65.4 84.0 113.5 121.0 115.2 122.9 115.3 126.7 110.7 119.8 77.2 42 Large negotiable CDs 17.8 18.4 -14.3 -13.6 9.0 10.8 -7.8 -4.5 22.6 10.1 11.4 -39.4 43 Other at commercial banks 29.5 25.3 38.8 57.9 43.0 43.3 61.5 47.5 38.4 42.1 44.5 61. 1 44 At savings institutions 28.5 21.8 59.4 69.1 69.0 61.1 69.3 72.3 65.7 58.5 63.8 55.5 45 Money 14.5 8.2 12.6 16.1 26.1 22.2 14.3 25.4 26.8 22.1 22.3 3.8 46 Demand deposits 10.6 1.9 6.4 8.8 17.8 12.9 5.8 19.6 16.1 11.6 14.2 -6.1 47 Currency 3.9 6.3 6.2 7.3 8.3 9.3 8.6 5.8 10.8 10.5 8.1 10.0 48 Total of credit market instruments, deposits and currency 146.9 121.0 143.9 171.4 197.0 223.2 171.6 173.1 218.6 209.8 236.6 222.5 49 Public support rate (in percent) 16.3 28.7 22.2 20.8 25.4 27.5 22.6 22.2 27.9 26.5 28.5 12.3 50 Private financial intermediation (in percent) 87.9 80.0 72.2 84.4 92.5 90.0 89.0 98.2 88.5 93.5 86.6 84.4 51 Total foreign funds 3.6 21.5 -2.6 10.6 40.5 44.0 17.3 29.9 51.2 36.3 51.8 22.7 MEMO: Corporate equities not included above 52 Total net issues 9.2 4.1 10.7 11.9 4.0 3.7 10.3 2.1 5.9 -.4 7.9 5.0 53 Mutual fund shares -1.2 -.7 -.1 -1.0 -.9 -1.0 .4 -.6 -1.3 -.5 -1.5 -.3 54 Other equities 10.4 4.8 10.8 12.9 4.9 4.7 9.9 2.6 7.2 .1 9.4 5.3 55 Acquisitions by financial institutions 13.1 5.8 9.6 12.3 7.4 7.6 11.8 6.8 8.1 .4 14.7 14.2 56 Other net purchases -3.9 -1.7 1.1 -.4 -3.4 -3.8 -1.5 -4.7 -2.2 -.8 -6.8 -9.2 NOTES BY LINE NUMBER. 29. Demand deposits at commercial banks. 1. Line 2 of p. A-44. 30. Excludes net investment of these reserves in corporate equities. 2. Sum of lines 3-6 or 7-10. 31. Mainly retained earnings and net miscellaneous liabilities. 6. Includes farm and commercial mortgages. 32. Line 12 less line 19 plus line 26. 11. Credit market funds raised by federally sponsored credit agencies, 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 and net issues of federally related mortgage pool securities. Included includes mortgages. below in lines 3, 13, and 33. 45. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. 46. Lines 32 plus 38, or line 12 less line 27 plus line 45. Also sum of lines 27, 32, 39, and 44. 47. Line 2/line 1. 17. Includes farm and commercial mortgages. 48. Line 19/line 12. 25. Sum of lines 39 and 44. 49. Sum of lines 10 and 28. 26. Excludes equity issues and investment company shares. Includes 50. 52. Includes issues by financial institutions. line 18. NOTE. Full statements for sectors and transaction types quarterly, 28. Foreign deposits at commercial banks, bank borrowings from foreign and annually for flows and for amounts outstanding, may be obtained branches, and liabilities of foreign banking agencies to foreign af- from Flow of Funds Section, Division of Research and Statistics, Board filiates . of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • December 1979 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1979 Measure 1976 1977 1978 Apr. May June July Aug.r Sept. ' Oct.r Nov. 1 Industrial production1 130.5 138.2 146.1 150.8 152.4 152.6 152.8 151.6 152.4 152.4 151.6 Market groupings 2 Products, total 129.7 137.9 144.8 148.4 150.3 150.2 149.7 148.7 149.8 149.6 149.0 3 Final, total 127.6 135.9 142.2 145.4 147.8 147.6 147.1 145.6 147.1 146.9 146.2 4 Consumer goods 137.1 145.3 149.1 149.1 152.0 151.8 150.8 148.2 149.8 149.9 148.7 5 Equipment 114.6 123.0 132.8 140.4 141.9 141.9 142.1 141.8 143.5 142.7 142.8 6 Intermediate 137.2 145.1 154.1 159.7 159.5 159.5 159.4 160.6 159.6 159.6 159.3 7 Materials 131.7 138.6 148.3 154.5 155.7 b 156.5 157.6 156.0 156.4 156.6 155.6 Industry groupings 8 Manufacturing 130.3 138.4 146.8 151.6 153.8 153.9 154.1 152.8 158.2 157.6 152.8 Capacity utilization (percent)1 •2 9 Manufacturing 79.5 81.9 84.4 85.3 86.3 86.2 86.1 84.9 85.3 85.0 84.4 10 Industrial materials industries 81.1 82.7 85.6 86.9 87.4 87.5 87.9 86.8 86.7 86.7 85.9 11 Construction contracts 3 190.2 160.5 174.3 202.0 178.0 177.0 165.0 164.0 185.0 171.0 n.a. 12 Nonagricultural employment, total4 120.7 125.3 131.4 135.3 135.9 136.2 136.3 136.4 136.5 136.7 137.1 13 Goods-producing, total 100.2 104.5 109.8 114.0 114.3 114.4 114.7 114.1 114.1 113.9 114.1 14 Manufacturing, total 97.7 101.2 105.3 108.3 108.3 108.3 108.4 107.8 107.7 107.4 107.4 15 Manufacturing, production-worker 95.3 98.8 102.8 105.8 105.6 105.5 105.5 104.5 104.5 104.1 104.0 16 Service-producing 131.9 136.7 143.2 147.0 147.7 148.1 148.2 148.6 148.7 149.2 149.6 17 Personal income, totals 220.5 244.4 274.1 300.1 301.9 304.0 r308.5 310.5 312.6 315.2 n.a. 18 Wages and salary disbursements 208.2 230.2 258.1 282.1 283.2 285.5 '287.7 289.2 292.0 249.5 n.a. 19 Manufacturing 177.0 198.3 222.4 244.1 244.8 245.9 r247.6 246.3 248.8 251.1 n.a. 20 Disposable personal income 176.8 194.8 217.7 239.1 244.8 21 Retail sales 6 c207.4 c229.8 c253.8 272.7 274.8 274.4 276.5 285.8 293.9 288.9 294.2 Prices'7 22 Consumer 170.5 181.5 195.4 211.5 214.1 216.6 218.9 221.1 223.4 225.4 n.a. 23 Producer finished goods 170.3 180.6 194.6 211.4 212.7 213.7 r216.2 217.3 220.4 223.7 225.9 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 Ql Q2 Q3r Q4 Ql Q2 Q3 Q4 Ql 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 162.2 162.1 161.9 163.4 181.2 182.7 184.2 185.7 89.5 88.7 87.9 88.0 146.1 148.7 148.5 148.0 172.7 173.8 175.0 176.2 84.6 85.6 84.8 84.0 33 AAddvvaanncceedd pprroocceessssiinngg 154.6 155.5 155.6 156.7 175.4 176.8 178.1 179.8 88.2 88.0 87.3 87.1 44 MMaatteerriiaallss 157.3 158.4 157.7 158.7 180.1 181.5 183.0 184.6 87.4 87.3 86.2 86.0 55 DDuurraabbllee ggooooddss 132.2 124.7 124.3 127.0 139.6 139.8 140.3 140.8 94.7 89.1 88.5 90.2 66 MMeettaall mmaatteerriiaallss 170.3 172.2 173.4 175.7 190.2 191.9 193.7 195.7 89.6 89.7 89.5 89.8 77 NNoonndduurraabbllee ggooooddss 177.1 179.1 181.3 184.3 197.9 199.6 201.5 203.8 89.5 89.7 89.9 90.5 88 TTeexxttiillee,, ppaappeerr,, aanndd cchheemmiiccaall 119.5 118.2 119.6 122.3 136.6 136.9 137.3 137.7 87.5 86.3 87.1 88.8 99 TTeexxttiillee 138.1 136.9 140.7 147.0 147.8 148.7 149.9 151.0 93.4 92.0 93.9 97.3 1100 PPaappeerr 218.0 222.7 224.8 226.6 244.6 247.4 250.6 253.8 89.1 90.0 89.7 89.3 1111 CChheemmiiccaall 128.9 127.9 128.1 128.4 145.7 146.7 147.5 148.3 88.5 87.2 86.9 86.6 1122 EEnneerrggyy 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 Category 1976 1977 1978 May July Aug. Sept. Oct. Nov. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 156,048 158,559 161,058 163,260 163,469 163,685 163,891 164,106 >-164,468 164,682 2 Labor force (including Armed Forces)1 96,917 99,534 102,537 104,325 104,604 105,141 105,139 105,590 105,567 105,777 3 Civilian labor force 94,773 97,401 100,420 102,247 102,528 103,059 103,049 103,498 103,474 103,685 Employment 4 Nonagricultural industries2. 84,188 87,302 91,031 93,134 93,494 93,949 93,578 94,113 94,005 94,221 5 Agriculture 3,297 3,244 3,342 3,184 3,260 3,262 3,322 3,400 3,288 3,426 Unemployment 6 Number 7,288 6,855 6,047 5,929 5,774 5,848 6,149 5,985 6,182 6,039 7 Rate (percent of civilian labor force) 7.7 7.0 6.0 5.8 5.6 5.7 6.0 5.8 6.0 5.8 8 Not in labor force 59,130 59,025 58,521 58,935 59,865 58,545 58,752 58,515 58,901 58,904 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 79,382 82,423 86,446 89,398 89,626 89,713 89,762 r89,803 r89,967 90,185 10 Manufacturing 18,997 19,682 20,476 21,059 21,063 21,079 20,957 r20,949 r20,886 20,887 1 1 1 1 1 1 1 3 4 5 6 1 2 7 T T S C F G M e r i r o o n r i a a n n v v a d n t e i i n r e s n c r p a c e g n e c o m t r t e c a n o t n t i o s n tr u an ct d i o p n u blic utilities... 1 1 1 4 4 3 4 4 7 , , , , , , 2 5 5 8 5 7 7 7 8 7 5 7 5 7 1 2 1 1 6 5 9 1 1 1 4 4 3 5 5 8 , , , , , , 4 7 8 0 3 5 8 6 5 1 7 0 1 1 7 1 3 9 3 6 3 1 1 1 4 4 4 6 9 5 , , , , , , 7 2 9 4 4 2 8 7 2 2 9 7 2 5 1 7 7 9 6 0 1 2 1 1 4 4 0 5 5 6 , , , , , , 6 9 1 1 5 9 9 4 3 2 9 3 5 4 8 6 9 8 0 4 4 2 1 1 4 4 5 0 7 5 , , , , , , 9 6 1 1 0 6 9 5 5 6 3 9 1 4 8 1 2 7 0 6 9 2 1 1 4 4 0 5 7 5 , , , , , , 9 6 1 1 6 0 9 6 8 7 2 3 9 5 9 8 2 5 2 2 6 2 1 1 4 0 5 5 7 5 , , , , , , 6 0 1 1 1 6 9 0 4 7 9 9 2 6 3 1 4 9 4 8 6 r r r 2 l 1 r r r 7 4 4 5 0 5 , , , , , , r 1 9 6 1 6 1 9 9 7 9 6 7 8 7 1 1 7 9 3 0 3 ' ' ' 1 2 1 r ' ' 4 5 5 5 0 7 , , , , , , r 6 6 0 2 2 2 9 9 6 1 1 6 4 8 3 9 8 7 0 4 0 2 1 1 4 5 0 5 5 7 , , , , , , 7 2 0 2 6 3 9 3 8 5 7 3 3 8 1 5 6 3 3 4 6 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 • December 1979 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data are seasonally adjusted. 1967 1978 1979 Grouping pro- 1978 por- avertion age Sept. Oct. Nov. Mar. Apr. May June July Augr Sept. Oct.? Nov.e Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 146.1 148.6 149.7 150.6 153.0 150.8 152.4 152.6 152.8 151.6 152.4 152.4 151.6 2 Products 60.71 144.8 146.9 147.5 148.0 150.8 148.4 150.3 150.2 149.7 148.7 149.8 149.6 149.0 3 Final products 47.82 142.2 144.5 145.1 145.3 148.2 145.4 147.8 147.6 147.1 145.6 147.1 146.9 146.2 4 Consumer goods 27.68 149.1 150.8 151.2 151.3 152.9 149.1 152.0 151.8 150.8 148.2 149.8 149.9 148.7 5 Equipment 20.14 132.8 135.9 136.6 137.1 141.7 140.4 141.9 141.9 142.1 141.8 143.5 142.7 142.8 6 Intermediate products 12.89 154.1 155.6 156.4 157.8 160.4 159.7 159.5 159.5 159.4 160.6 159.6 159.6 159.3 7 Materials 39.29 148.3 151.2 153.2 154.5 156.3 154.5 155.7 156.5 157.6 156.0 156.4 156.6 155.6 Consumer goods 8 Durable consumer goods 7.89 159.2 160.5 162.6 162.9 163.6 151.6 160.5 158.6 157.2 147.5 152.0 152.9 149.6 9 Automotive products 2.83 179.9 179.5 187.6 190.2 186.8 163.0 182.7 175.9 170.3 147.3 157.8 160.2 152.4 10 Autos and utility vehicles 2.03 172.5 170.0 181.0 185.0 178.8 147.4 176.3 167.4 155.6 125.1 139.7 142.4 131.1 11 Autos 1.90 148.6 144.2 154.7 159.7 153.8 128.6 153.1 148.0 141.8 118.5 128.0 129.0 118.3 12 Auto parts and allied goods 80 198.5 203.7 204.3 203.2 207.2 202.7 199.0 197.5 207.8 203.7 204.0 205.4 206.4 13 Home goods 5.06 147.7 149.9 148.6 147.6 150.6 145.2 148.1 148.8 149.8 147.7 148.8 148.8 148.0 14 Appliances, A/C, and TV 1.40 133.3 136.2 132.3 129.1 128.4 115.6 128.4 129.3 129.7 121.2 129.6 126.2 125.0 15 Appliances and TV 1.33 135.4 137.5 132.9 130.1 130.3 116.5 130.2 131.2 131.6 124.1 132.3 128.3 16 Carpeting and furniture 1.07 164.2 167.9 165.3 164.2 173.5 170.7 170.2 170.6 171.9 171.7 169.7 169.7 17 Miscellaneous home goods 2.59 148.6 149.9 150.5 150.7 153.2 150.8 149.6 150.5 151.6 152.1 150.5 152.5 152.0 18 Nondurable consumer goods 19.79 145.1 147.0 146.6 146.7 148.6 148.0 148.7 149.1 148.2 148.5 148.9 148.7 148.4 19 Clothing 4.29 131.1 ns.o 132.6 132.4 130.9 127.7 128.6 130.7 126.9 128.0 129.0 20 Consumer staples 15.50 148.9 150.3 150.5 150.6 153.6 153.7 154.2 154.2 154.1 154.2 154.4 154.5 154.3 21 Consumer foods and tobacco 8.33 140.6 141.4 141.4 141.7 145.1 145.2 145.7 146.2 147.0 145.3 146.1 146.3 22 Nonfood staples 7.17 158.5 160.6 161.1 161.0 163.4 163.5 164.1 163.5 162.4 164.6 164.0 164.1 163.9 23 Consumer chemical products 2.63 192.7 196.1 198.3 195.9 202.8 201.6 205.2 205.9 206.1 209.2 207.2 206.7 24 Consumer paper products 1.92 118.4 119.8 118.0 119.0 121.4 120.9 121.3 121.1 119.9 121.2 121.1 122.5 25 Consumer energy products 2.62 153.6 155.0 155.3 156.8 154.7 156.4 154.3 152.0 149.8 151.6 152.1 151.8 26 Residential utilities 1.45 162.1 162.2 163.0 162.7 167.9 169.1 167.8 162.3 158.5 163.5 164.3 Equipment 27 Business 12.63 160.3 163.8 164.8 165.0 170.8 168.7 171.4 171.5 171.4 171.5 173.3 171.3 171.4 28 Industrial 6.77 145.8 147.6 148.1 147.6 152.8 150.4 151.8 152.0 151.3 151.7 153.6 151.3 152.1 29 Building and mining 1.44 207.3 208.4 208.8 207.8 205.2 204.2 203.7 205.3 207.4 210.6 212.0 200.5 203.5 30 Manufacturing 3.85 121.2 122.8 123.4 123.3 130.3 128.0 130.1 130.1 130.3 131.1 130.7 130.7 130.7 31 Power 1.47 149.4 153.0 153.0 152.1 160.2 156.0 157.7 156.8 151.0 147.7 156.3 156.8 157.5 32 Commercial transit, farm 5.86 177.2 182.5 184.1 185.0 191.6 189.9 193.9 194.0 194.6 194.4 196.1 194.4 193.8 33 Commercial 3.26 212.0 217.6 218.2 217.8 224.4 223.0 224.9 226.4 227.0 230.5 230.7 232.8 233.1 34 Transit 1.93 133.8 139.5 143.3 145.7 150.5 148.8 156.7 155.3 155.2 149.4 155.3 154.4 151.8 35 Farm 67 132.8 135.7 135.5 138.5 150.0 147.7 150.8 148.1 151.0 148.3 145.2 123.2 36 Defense and space 7.51 86.5 89.0 89.3 90.3 92.9 92.9 92.5 92.3 92.8 92.0 93.5 94.8 94.6 Intermediate products 37 Construction supplies 6.42 151.7 153.5 154.5 156.1 157.1 156.0 156.4 156.3 156.4 157.3 156.2 155.8 154.9 38 Business supplies 6.47 156.5 157.7 158.4 159.6 163.8 163.2 162.5 162.6 162.4 163.8 163.0 163.4 39 Commercial energy products 1.14 168.2 170.2 170.0 171.3 173.5 174.6 172.6 169.4 167.8 170.7 169.1 170.7 Materials 40 Durable goods materials 20.35 149.0 153.4 155.5 157.0 159.2 155.7 157.9 159.5 160.7 157.7 157.6 157.2 155.2 41 Durable consumer parts 4.58 140.8 145.1 147.0 147.2 145.8 136.9 142.5 141.8 138.5 129.7 132.2 131.1 123.9 42 Equipment parts 5.44 166.5 170.7 172.9 176.7 186.8 187.0 188.0 191.0 192.1 190.7 191.6 191.9 193.1 43 Durable materials n.e.c 10.34 143.3 148.0 150.1 151.0 150.6 147.7 149.0 150.8 154.0 152.7 150.9 150.4 149.2 44 Basic metal materials 5.57 121.2 127.0 129.3 130.2 126.7 123.2 122.9 126.1 130.5 127.7 125.1 122.9 45 Nondurable goods materials 10.47 165.6 167.8 168.8 170.2 173.1 173.0 173.8 173.4 174.6 175.8 176.6 178.1 178.1 46 Textile, paper, and chemical materials 7.62 171.8 174.6 175.3 177.1 180.1 180.7 181.5 181.7 182.8 184.3 185.9 187.8 187.8 47 Textile materials 1.85 116.9 116.8 119.7 118.8 119.0 117.0 118.8 122.9 122.2 120.6 124.1 124.8 48 Paper materials 1.62 137.0 137.7 137.3 137.9 139.9 140.8 140.1 141.1 146.2 146.7 148.1 147.4 49 Chemical materials 4.15 210.0 214.9 214.9 218.4 223.0 224.7 225.7 223.9 224.1 227.5 228.3 231.8 50 Containers, nondurable 1.70 159.8 160.7 163.9 163.1 167.3 162.0 163.3 159.2 163.1 162.9 161.8 163.4 51 Nondurable materials n.e.c 1.14 132.7 132.5 133.2 135.2 135.6 138.2 138.4 139.0 137.5 138.2 136.4 135.0 52 Energy materials 8.48 125.3 125.6 128.6 129.3 128.7 128.4 127.7 128.3 129.1 127.7 128.5 128.9 128.8 53 Primary energy 4.65 112.6 111.5 116.7 117.0 114.6 113.0 111.7 112.4 112.8 112.0 114.0 114.0 54 Converted fuel materials 3.82 140.8 142.7 143.0 144.4 145.9 147.1 147.2 147.6 148.8 146.9 146.2 146.9 Supplementary groups 55 Home goods and clothing 9.35 140.0 143.0 141.2 140.6 141.6 137.2 139.1 140.5 139.3 138.6 139.7 139.2 138.4 56 Energy, total 12.23 135.4 136.0 138.2 139.1 138.4 138.7 137.6 137.2 137.1 136.8 137.3 137.7 137.6 57 Products 3.76 158.0 159.6 159.8 161.2 160.3 161.9 159.9 157.3 155.2 157.4 137.2 157.5 58 Materials 8.48 125.3 125.6 128.6 129.3 128.7 128.4 127.7 128.3 129.1 127.7 128.5 128.9 i28.8 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 1967 1978 1979 Grouping SIC pro- 1978 code por- avertion age^ Sept. Oct. Nov. Mar. Apr. May June July Aug.r Sept. Oct.2* Nov.e Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities. 12.05 141.7 142.6 144.6 140.9 143.5 143.8 143.4 143.0 143.7 149.0 146.5 142.9 143.1 2 Mining 6.36 124.0 124.4 127.9 129.4 122.3 122.7 122.8 123.9 124.7 126.9 127.0 129.0 129.0 3 Utilities 5.69 161.4 163.0 163.2 153.8 167.1 167.4 166.5 164.2 164.8 173.7 168.2 158.4 158.9 4 Electrip 3.88 182.2 184.5 184.7 170.9 188.8 189.0 186.4 182.4 182.2 200.7 192.3 5 Manufacturing 87.95 146.8 149.6 150.7 151.9 154.5 151.6 153.8 153.9 154.1 152.8 158.2 157.6 152.8 6 Nondurable 35.97 156.9 159.3 159.5 160.8 163.0 161.7 162.8 163.0 164.1 168.8 171.7 170.9 165.4 7 Durable 51.98 139.7 142.9 144.6 145.6 148.6 144.6 147.6 147.6 147.2 141.7 148.8 148.5 144.1 Mining 8 Metal 10 .51 121.0 115.6 122.1 120.9 126.9 128.9 123.1 123.2 128.6 132.8 131.0 126.1 9 Coal 11,12 .69 114.7 114.0 141.9 146.1 124.0 130.1 133.4 137.5 137.1 144.1 146.9 151.9 144.3 10 Oil and gas extraction. . . 13 4.40 124.6 125.4 125.5 126.1 119.3 118.6 118.6 119.6 120.4 121.2 121.1 123.3 125.3 11 Stone and earth minerals. 14 .75 131.2 133.7 133.6 139.3 135.6 135.3 137.8 137.3 136.4 140.8 141.0 143.2 Nondurable manufacturers 12 Foods 20 8.75 142.7 143.7 143.2 145.7 147.6 147.0 149.2 149.5 149.4 155.0 159.0 156.9 13 Tobacco products 21 .67 118.3 120.3 119.0 123.1 123.3 120.0 120.2 118.3 118.9 112.3 125.7 14 Textile mill products 22 2.68 137.5 138.6 139.6 140.2 142.3 141.2 141.5 114.6 143.0 148.3 152.2 154.0 15 Apparel products 23 3.31 134.2 139.6 136.8 131.5 136.5 130.8 128.2 132.0 129.7 134.5 140.4 16 Paper and products 26 3.21 144.8 144.2 145.8 145.7 149.0 148.7 147.9 148.0 154.0 154.1 152.2 159.0 153.2 17 Printing and publishing 27 4.72 131.5 132.6 132.6 135.2 137.3 135.7 136.8 136.9 135.6 149.7 150.5 145.1 141.0 18 Chemicals and products 28 7.74 197.4 201.3 202.7 203.9 107.4 207.7 209.7 207.8 210.5 215.6 218.0 217.7 19 Petroleum products 29 1.79 145.2 147.6 147.6 153.5 143.8 145.4 142.4 143.9 143.9 148.7 146.0 142.2 144.7 20 Rubber and plastic products. 30 2.24 253.6 260.9 262.3 265.5 270.4 265.5 270.0 270.0 278.0 268.5 276.0 280.2 21 Leather and products 31 .86 73.8 72.9 72.4 72.9 72.9 69.6 72.3 70.1 69.7 70.7 72.8 72.6 Durable manufactures 22 Ordnance, private and government 19,91 3.64 73.7 73.8 74.2 72.6 75.1 75.1 75.3 75.1 74.6 74.8 75.1 74.4 75.1 23 Lumber and products 24 1.64 136.3 136.2 138.1 137.2 137.7 137.2 136.1 136.8 135.2 140.6 143.5 142.2 24 Furniture and fixtures 25 1.37 155.8 160.7 159.9 161.0 163.6 159.4 159.6 159.6 159.5 162.4 165.8 165.2 25 Clay, glass, stone products.... 32 2.74 157.2 159.8 161.3 164.7 164.9 161.2 163.8 162.7 163.3 168.1 164.7 169.7 26 Primary metals 33 6.57 119.9 127.4 129.4 123.3 123.7 121.7 121.0 124.3 127.1 115.7 118.7 116.4 110.3 27 Iron and steel 331,2 4.21 113.2 121.3 123.8 115.9 116.2 115.8 114.3 118.1 119.0 107.2 111.8 106.3 28 Fabricated metal products. 34 5.93 141.6 144.2 144.9 147.0 150.2 148.8 150.3 149.3 149.3 146.4 148.6 149.3 147.8 29 Nonelectrical machinery... 35 9.15 153.6 156.4 157.5 158.0 164.0 161.8 164.3 164.5 165.3 165.9 172.5 165.3 161.9 30 Electrical machinery 36 8.05 159.4 163.3 164.2 167.4 174.2 170.6 174.7 175.1 174.4 170.0 181.3 182.3 179.1 31 Transportation equipment 37 9.27 132.5 134.9 139.7 144.2 143.7 131.6 141.9 139.4 135.5 113.2 132.3 137.3 128.1 32 Motor vehicles and parts 371 4.50 169.9 171.0 178.9 185.1 179.7 156.0 176.3 169.6 160.2 116.7 151.7 158.7 140.5 33 Aerospace and miscellaneous transportation equipment. 372-9 4.77 97.2 100.9 102.8 105.6 109.7 108.6 109.6 111.0 112.2 109.9 114.0 117.1 116.5 34 Instruments 38 2.11 167.1 170.4 170.3 174.0 177.3 176.3 174.7 175.9 174.0 175.0 177.2 176.8 177.8 35 Miscellaneous manufactures 39 1.51 151.0 151.3 151.8 152.5 154.5 152.3 150.7 152.7 155.7 161.2 164.9 162.2 157.5 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total. 507.4 610.2 617.2 622.1 625.0 636.1 620.8 632.3 628.7 622.7 613.0 622.4 621.4 616.1 37 Final 2390.9 471.0 476.8 481.0 482.8 491.0 476.4 488.2 485.1 479.6 468.8 478.8 478.0 473.2 38 Consumer goods. 2277.5 326.6 329.9 331.8 332.8 334.7 323.9 331.5 329.8 326.0 319.2 323.8 325.1 322.1 39 Equipment 2113.4 144.4 146.9 149.2 150.0 156.3 152.5 156.7 155.4 153.6 149.6 155.0 152.8 151.1 40 Intermediate 2116.6 139.2 140.4 141.1 142.3 145.1 144.4 144.2 143.6 143.2 144.2 143.7 143.4 142.9 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 • December 1979 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1979 1976 r 1977 r 1978 r Item Apr. May June July r Aug.r Sept.r Oct. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,296 1,677 1,801 1,517 1,618 1,639 1,528 1,654 1,775 1,550 2 1-family 894 1,126 1,182 1,036 1,047 1,012 1,001 1,030 1,015 920 3 2-or-more-family 402 551 619 481 571 627 527 624 760 630 4 Started 1,538 1,986 2,019 1,745 1,835 1,923 1,788 1,793 1,911 1,760 5 1-family 1,163 1,451 1,433 1,278 1,226 1,288 1,220 1,239 1,255 1,148 6 2-or-more-family 377 535 586 467 609 635 568 554 656 612 7 Under construction, end of period l.. 1,147 1,442 1,355 1,256 1,244 1,247 1,237 1,235 1,235 n.a. 8 1-family 655 829 1,378 793 730 723 715 715 720 n.a. 9 2-or-more-family 492 613 553 519 514 524 522 520 514 n.a. 10 Completed 1,362 1,652 1,866 2,015 2,016 1,866 1,745 1,742 1,948 n.a. 11 1-family 1,026 1,254 1,368 1,438 1,344 1,345 1,192 1,193 1,197 n.a. 12 2-or-more-family 336 398 498 577 672 521 553 549 751 n.a. 13 Mobile homes shipped 246 277 276 273 271 279 282 277 268 n.a. Merchant builder activity in 1-family units 14 Number sold 639 819 817 mi r707 '689 778 756 737 724 15 Number for sale, end of period1 433 407 423 425 430 418 416 416 414 408 Price (thousands of dollars)2 Median 16 Units sold 44.2 48.9 55.9 62.6 '63.8 '64.2 63.8 63.9 67.3 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 71.1 71.8 74.3 71.9 74.3 77.4 71.4 EXISTING UNITS (1-family) 19 Number sold 33,,000022 3,572 33,,990055 3,760 3,860 33,,556600 33,,777700 33,,885500 44,,001100 33,,999900 Price of units sold (thous. of dollars)1 20 Median 38.1 4422..99 48.7 5544..77 55.9 56.8 57.9 57.7 57.3 56.3 21 Average 42.2 47.9 55.1 62.5 64.2 66.1 66.7 66.3 66.1 65.2 Value of new construction * (millions of dollars) CONSTRUCTION 22 Total put in place 151,053 173,998 206,223 216,212 223,205 224,686 232,593 '232,396 234,640 235,951 23 Private 111,931 135,824 160,403 171,692 174,803 178,703 181,678 '182,860 183,669 184,030 24 Residential 60,519 80,957 93,425 95,496 94,963 97,339 98,781 '100,045 101,244 99,659 51,412 54,867 6666,,997788 7766,,119966 79,840 81,364 8822,,889977 8822,,881155 82,425 8844,,337711 Buildings 77,,113322 77,,771133 10,993 14,034 14,504 14,697 15,547 13,751 13,698 14,348 12,7:57 14,789 18,568 21,463 23,601 24,785 24,785 25,818 25,693 26,653 28 Other 6,1:55 6,200 6,739 7,150 7,141 7,306 7,427 7,532 7,331 7,839 25,320 26,173 30,685 33,325 34,101 33,958 35,140 35,714 35,702 35,530 30 Public 39,120 38,172 45,821 44,823 48,402 45,983 50,916 49,536 50,971 51,921 31 Military 1,630 1,428 1,498 1,550 1,531 1,787 1,459 1,702 1,704 1,808 32 Highway 9,406 8,984 10,286 9,875 11,674 10,250 11,166 10,802 n.a. n.a. 33 Conservation and development... 3,741 3,862 4,436 4,417 5,383 3,572 5,371 5,273 n.a. n.a. 34 Other3 24,343 23,898 29,601 30,376 29,814 30,374 32,920 31,759 n.a. n.a. 1. Not at annual rates. NOTE. Census Bureau estimates for all series except (a) mobile homes, 2. Not seasonally adjusted. which are private, domestic shipments as reported by the Manufactured 3. Beginning January 1977 Highway imputations are included in Other. Housing Institute and seasonally adjusted by the Census Bureau, and 4. Value of new construction data in recent periods may not be strictly (b) sales and prices of existing units, which are published by the Nacomparable with data in prior periods due to changes by the Bureau of tional Association of Realtors. All back and current figures are availthe Census in its estimating techniques. For a des cription 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 OOOcccttt... 11997788 11997799 111999777999 OOcctt.. OOcctt.. (((111999666777 Dec. Mar. June Sept. June July Aug. Sept. Oct. === 111000000)))333 CONSUMER PRICES1 8.9 12.2 8.5 13.0 13.4 13.2 1.0 1.0 1.1 1.1 1.0 225.4 2 Commodities 8.4 12.4 9.6 14.5 13.3 12.3 1.0 .9 .9 1.1 .8 215.6 3 Food 11.5 9.9 10.2 17.7 7.5 4.2 .2 .1 0 .9 .8 238.2 4 Commodities less food 7.0 13.6 9.6 12.9 15.8 16.2 1.3 1.2 1.3 1.2 .8 203.4 5 Durable 8.4 9.6 11.3 10.0 9.1 8.7 .8 .7 .7 .7 .7 196.0 6 Nondurable 4.5 18.6 6.7 16.5 25.8 25.7 2.1 2.1 1.9 1.8 .7 211.3 7 Services 9.6 11.9 7.2 10.6 13.8 14.3 1.0 1.1 1.2 1.1 1.2 243.6 8 Rent 7.2 8.4 7.7 3.6 8.7 10.7 .5 .8 .9 .8 1.3 181.4 9.9 12.5 7.1 11.7 14.5 15.1 1.1 1.2 1.3 1.1 1.2 255.1 Other groupings 10 All items less food 8.3 12.8 8.5 12.0 14.9 15.4 1.1 1.2 1.3 1.2 1.0 221.8 11 All items less food and energy 8.4 10.1 7.7 9.3 11.2 11.5 .8 .7 1.0 1.0 1.0 213.6 12 Homeownership 12.9 16.8 10.9 16.7 18.0 19.3 1.4 1.4 1.7 1.4 1.9 276.7 PRODUCER PRICES 8.5 12.1 10.5 14.3 7.5 15.0 .5 .9 1.2 1.4 1.0 223.7 14 Consumer 8.9 13.5 11.1 16.0 6.7 19.6 .5 1.0 1.6 1.8 1.0 224.1 15 Foods 11.6 6.9 15.3 21.0 -11.3 13.1 -1.2 0.0 1.2 1.8 —. 1 226.7 16 Excluding foods 7.3 17.2 8.8 13.4 17.9 23.2 1.4 1.6 1.8 1.9 1.6 220.6 17 Capital equipment 7.7 8.9 8.8 10.3 9.8 4.3 .6 .6 .1 .3 1.2 222.5 18 Materials 10.4 15.5 13.0 17.9 12.0 18.5 1.0 1.7 1.0 1.6 1.7 261.4 19 Intermediate 2 7.5 15.7 11.2 14.0 15.3 18.8 1.0 1.4 1.4 1.5 1.9 256.4 Crude 20 Nonfood 16.5 24.3 19.8 29.2 22.2 21.0 3.2 1.4 .5 2.9 2.8 368.9 21 Food 22.6 10.3 21.2 31.0 -7.1 13.9 -1.2 2.1 -.2 1.5 .5 247.1 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 • December 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 Q3r 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 2,394.5 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 1,527.7 3 Durable goods 157.4 178.8 200.3 200.3 203.5 212.1 213.8 208.7 212.5 4 Nondurable goods 443.9 481.3 530.6 521.8 536.7 558.1 571.1 581.2 604.1 5 Services 488.5 549.8 619.8 609.1 629.1 645.1 669.3 686.0 711.2 6 Gross private domestic investment 243.0 303.3 351.5 352.3 356.2 370.5 373.8 395.4 393.7 7 Fixed investment 233.0 281.3 329.1 326.5 336.1 349.8 354.6 361.9 378.4 8 Nonresidential 164.9 189.4 221.1 218.8 225.9 236.1 243.4 249.1 262.0 9 Structures 57.3 62.6 76.5 75.2 79.7 84.4 84.9 90.5 95.1 10 Producers' durable equipment 107.6 126.8 144.6 143.6 146.3 151.8 158.5 158.6 166.9 11 Residential structures 68.1 91.9 108.0 107.7 110.2 113.7 111.2 112.9 116.4 12 Nonfarm 65.7 88.8 104.4 104.3 106.4 110.0 107.8 109.1 112.3 13 Change in business inventories 10.0 21.9 22.3 25.8 20.0 20.6 19.1 33.4 15.3 14 Nonfarm 12.1 20.7 21.3 25.3 18.5 19.3 18.8 32.6 13.4 15 Net exports of goods and services 8.0 -9.9 -10.3 -7.6 -6.8 -4.5 4.0 -8.1 -3.5 16 Exports 163.3 175.9 207.2 205.7 213.8 224.9 238.5 243.7 266.8 17 Imports 155.4 185.8 217.5 213.3 220.6 229.4 234.4 251.9 270.3 18 Government purchases of goods and services... 361.3 396.2 435.6 428.3 440.9 453.8 460.1 466.6 477.5 19 Federal 129.7 144.4 152.6 148.2 152.3 159.0 163.6 161.7 162.7 20 State and local 231.6 251.8 283.0 280.1 288.6 294.8 296.5 304.9 314.8 By major type of product 21 Final sales, total 11,,669922..11 11,,887777..66 22,,110055..22 2,078.4 2,139.5 2,214.5 2,272.9 2,296.4 2,380.1 22 Goods 762.7 842.2 930.0 922.5 940.9 983.8 1,011.8 1,018.1 1,035.9 23 Durable 305.9 345.9 380.4 378.0 382.6 402.3 425.5 422.4 425.7 24 Nondurable 456.8 496.3 549.6 544.5 558.3 581.6 586.2 595.7 610.2 25 Services 776.7 866.4 969.3 956.2 981.7 1,005.3 1,041.4 1,064.2 1,099.3 26 Structures 162.7 190.9 228.2 225.6 237.0 246.0 238.9 247.5 260.2 27 Change in business inventories 10.0 21.9 22.3 25.8 20.0 20.6 19.1 33.4 15.3 28 Durable goods 5.3 11.9 13.9 13.1 10.3 13.4 18.4 24.3 8.7 29 Nondurable goods 4.7 10.0 8.4 12.7 9.7 7.2 .7 9.1 6.6 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 1,434.4 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 1,941.6 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 1,472.9 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 1,238.1 34 Government and government enterprises .. 188.0 201.3 218.0 215.3 219.2 225.1 228.1 231.2 234.4 35 Other 702.0 782.7 885.5 874.6 898.1 929.6 961.3 980.3 1,003.7 36 Supplement to wases and salaries 147.8 172.9 201.0 198.3 203.7 210.1 221.8 228.2 234.8 37 Employer contributions for social insurance 7700..44 81.2 9944..66 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 89.3 100.2 116.8 115.0 117.4 125.7 129.0 129.3 130.1 40 Business and professional1 71.0 80.5 89.1 87.3 91.3 94.4 94.8 95.5 99.2 41 Farm1 18.3 19.6 27.7 27.7 26.1 31.3 34.2 33.7 30.9 42 Rental i ncome of persons2 22.1 24.7 25.9 24.4 26.8 27.1 27.3 26.8 26.6 43 Corporate profits1 126.8 150.0 167.7 169.4 175.2 184.8 178.9 176.6 181.0 44 Profits before tax 3 156.0 177.1 206.0 207.2 212.0 227.4 233.3 227.9 242.5 45 Inventory valuation adjustment. -14.6 -15.2 -25.2 -25.1 -23.0 -28.8 -39.9 -36.6 -44.0 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 94.0 109.5 106.8 111.9 117.6 122.6 125.6 131.1 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.50. 2. With capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Income Accounts A53 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1978 1979 1976 1977 1978 Q2 Q3 Q4 Q1 Q2 PERSONAL INCOME AND SAVING 1 Total 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 2 Wage and salary disbursements 890.0 984.0 1,103.3 1,090.0 1,116.8 1,154.3 1,189.3 1,212.4 3 Commodity-producing industries 307.2 343.1 387.4 383.4 393.7 408.6 423.0 431.7 4 Manufacturing 237.4 266.0 298.3 294.1 300.8 312.7 324.8 328.5 5 Distributive industries 216.3 239.1 269.4 265.9 272.5 281.6 291.1 295.8 6 Service industries 178.5 200.5 228.7 225.4 231.9 239.4 247.2 252.8 7 Government and government enterprises., 188.0 201.3 217.8 215.3 218.7 224.7 228.0 232.1 8 Other labor income 77.4 91.8 106.5 104.7 108.2 111.9 116.0 120.3 9 Proprietors'income1 89.3 100.2 116.8 115.0 117.4 125.7 129.0 129.3 10 Business and professional1 71.0 80.5 89.1 87.3 91.3 94.4 94.8 95.5 11 Farm1 18.3 19.6 27.7 27.7 26.1 31.3 34.2 33.7 12 Rental income of persons2 22.1 24.7 25.9 24.4 26.8 27.1 27.3 26.8 13 Dividends 37.5 42.1 47.2 46.0 47.8 49.7 51.5 52.3 14 Personal interest income 127.0 141.7 163.3 159.4 167.2 174.3 181.0 187.6 15 Transfer payments 193.8 208.4 224.1 218.8 228.3 231.8 237.3 243.6 16 Old-age survivors, disability, and health insurance benefits 92.9 105.0 116.3 112.4 119.8 121.5 123.8 127.1 17 LESS: Personal contributions for social insurance 55.6 61.3 69.6 69.0 70.2 71.8 78.7 79.8 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 19 LESS: Personal tax and nontax payments.... 197.1 226.4 259.0 252.1 266.0 278.2 280.4 290.7 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 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 22 EQUALS: Personal saving 68.6 65.0 72.0 71.2 70.9 71.5 79.2 85.9 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 24 Personal consumption expenditures. 3.813 3,974 4,121 4,099 4,138 4,197 4,197 4,155 25 Disposable personal income 4,144 4,285 4,449 4,426 4,462 4,522 4,536 4,510 26 Saving rate (percent) 5.8 5.0 4.9 5.0 4.8 4.7 5.0 5.4 GROSS SAVING 27 Gross private saving 271.9 295.6 324.9 324.2 330.4 336.1 345.2 360.5 28 Personal saving 68.6 65.0 72.0 71.2 70.9 71.5 79.2 85.9 29 Undistributed corporate profits1 25.5 35.2 36.0 38.7 40.0 40.1 36.1 35.6 30 Corporate inventory valuation adjustment. -14.6 -15.2 -25.2 -25.1 -23.0 -28.8 -39.9 -36.6 Capital consumption allowances 31 Corporate 111.6 121.3 132.9 131.7 134.3 136.8 139.9 145.1 32 Noncorporate 66.1 74.1 84.0 82.7 85.2 87.7 89.9 93.9 33 Wage accruals less disbursements 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 35 Federal -53.6 -46.3 -27.7 -24.6 -20.4 -16.3 -11.7 -7.0 36 State and local 17.9 26.8 27.4 29.6 22.7 27.1 27.6 19.7 37 Capital grants received by the United States, net 1.1 1.1 38 Investment 242.3 283.6 327.9 331.5 336.5 351.0 362.8 373.1 39 Gross private domestic. 243.0 303.3 351.5 352.3 356.2 370.5 373.8 395.4 40 Net foreign -.1 -19.6 -23.5 -20.8 -19.6 -19.4 -11.0 -22.3 41 Statistical discrepancy. 6.1 7.5 3.3 2.3 3.9 4.1 .6 -1.3 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 • December 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 Ql Q2 1 Balance on current account 44,,660055 --1144,,009922 --1133,,889955 -3,426 -3,227 -313 415 -965 -2,858 -5,955 722 1,731 -85 3 Merchandise trade balance2 -9,306 -30,873 -34,187 -7,907 -8,012 -6,369 -6,115 -7,716 4 Merchandise exports 114,745 120,816 141,884 35,267 36,491 39,315 41,348 42,792 5 Merchandise imports -124,051 -151,689 -176,071 -43,174 -44,503 -45,684 -47,463 -50,508 6 Military transactions, net 674 1,679 492 237 247 -239 34 -92 7 Investment income, net 3 15,975 17,989 21,645 4,854 4,952 6,599 6,864 7,398 8 Other service transactions, net 2,260 1,783 3,241 703 819 1,010 954 827 9 MEMO: Balance on goods and services3-4 9,603 -9,423 -8,809 -2,113 -1,994 1,001 1,737 417 10 Remittances, pensions, and other transfers -1,851 -1,895 -1,934 -486 -463 -524 -517 -485 11 U.S. government grants (excluding military) -3,146 -2,775 -3,152 -827 -770 -790 -805 -897 12 Change in U.S. government assets, other than official reserve assets, net (increase, —) -4,214 -3,693 -4,656 -1,263 -1,390 -994 -1,094 -1,000 13 Change in U.S. official reserve assets (increase, —) -2,558 -375 732 248 115 182 -3,585 343 14 Gold 0 -118 -65 0 0 -65 0 0 15 Special drawing rights (SDRs) -78 -121 1,249 -104 -43 1,412 -1,142 6 16 Reserve position in International Monetary Fund -2,212 -294 4,231 437 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, net 3 -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, -F) 17,573 36,656 33,758 -5,265 4,641 18.764 -9,391 -9,515 24 U.S. Treasury securities 9,319 30,230 23,542 -5,813 3,029 13,422 -8,872 -12,737 25 Other U.S. government obligations 573 2,308 656 211 443 -115 -5 94 26 Other U.S. government liabilities5 4,507 1,240 2,754 -136 122 2,045 -164 154 27 Other U.S. liabilities reported by U.S. banks 969 773 5,411 -164 963 3,156 -563 2,829 28 Other foreign official assets® 2,205 2,105 1,395 637 84 256 213 145 29 Change in foreign private assets in the United States (increase, +)3 18,826 14,167 29,956 6,207 10,717 10,475 10,868 13,931 30 U. S. bank-reported liabilities 10,990 6,719 16,975 1,865 7,958 7,556 7,157 11,299 31 U.S. nonbank-reported liabilities -578 473 1,640 315 1,004 -177 -651 n.a. 32 Foreign private purchases of U.S. Treasury securities, net 2,783 534 2,180 803 -1,053 1,549 2,583 -239 33 Foreign purchases of other U.S. securities, net 1,284 2,713 2,867 1,347 528 540 790 893 34 Foreign direct investments in the United States, net3 4,347 3,728 6,294 1,877 2,280 1,008 989 1,978 35 Allocation of SDRs 0 0 0 0 0 0 1,139 0 36 Discrepancy 10,265 -937 11,139 7,950 -2,082 1,328 4,606 12,016 37 Owing to seasonal adjustments 551177 --22,,771166 11,,330011 998855 774488 38 Statistical discrepancy in recorded data before seasonal adjustment 10,265 -937 11,139 7,433 634 27 3,621 11,268 MEMO: Changes in official assets 39 U.S. official reserve assets (increase, —) -2,558 -375 732 248 115 182 -3,585 343 40 Foreign official assets in the United States (increase, +).. 13,066 35,416 31,004 -5,129 44,,551199 1166,,771199 --99,,222277 -9,669 41 Changes in Organization of Petroleum Exporting Countries official assets in the United States (part of line 25 above) 9,581 6,351 -727 -2,705 -1,794 11,,880033 -1,916 676 42 Transfers under military grant programs (excluded from lines 4, 6, and 11 above) 373 220044 225599 50 69 63 31 48 1. Seasonal factors are no longer calculated for lines 13 through 42. makes various adjustments to merchandise trade and service transactions. 2. Data are on an international accounts (IA) basis. Differs from the 5. Primarily associated with military sales contracts and other transaccensus basis primarily because the IA basis includes imports into the tions arranged with or through foreign official agencies. U.S. Virgin Islands, and it excludes military exports, which are part of 6. Consists of investments in U.S. corporate stocks and in debt securiline 6. ties of private corporations and state and local governments. 3. Includes reinvested earnings of incorporated affiliates. 4. Differs from the definition of "net exports of goods and services" in NOTE. Data are from Bureau of Economic Analysis, Survey of Current the national income and product (GNP) account. The GNP definition Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Trade and Reserve Assets A55 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1979 IItteemm 11997766 11997777 11997788 Apr. May June July Aug. Sept. Oct. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 115,156 121,150 143,574 13,883 13,862 15,038 15,669 15,821 15,832 16,838 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 121,009 147,685 172,026 16,036 16,342 16,937 16,777 18,177 18,666 18,856 3 Trade balance -5,853 -26,535 -28,452 -2,153 -2,480 -1,900 -1,108 -2,357 -2,833 -2,018 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 May June July Aug. Sept. Oct. NOV.P 1 Total1 18,747 19,312 18,650 22,230 21,246 20,023 20,023 18,534 17,994 19,261 2 Gold stock, including Exchange Stabilization Fund2 11,598 11,719 11,671 11,354 11,323 11,290 11,259 11,228 11,194 11,112 2,395 2,629 1,558 2,624 2,670 2,690 2,689 2,725 2,659 2,705 4 Reserve position in International Monetary Fund1 4,434 4,946 1,047 1,193 1,204 1,200 1,277 1,280 1,238 1,322 5 Foreign currencies4 320 18 4,374 7,059 6,049 4,843 4,798 3,301 2,903 4,122 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 • December 1979 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1979 AAsssseett aaccccoouunntt 1976 1977 19782 Mar. Apr. May June July Aug. Sept.23 All foreign countries 219,420 258,897 306,795 '307,839 '303,996 '311,334 '327,012 '326,545 350,544 360,783 2 Claims on United States 7,889 11,623 17,340 '22,908 '19,985 '24,624 '29,293 '26,605 41,917 37,685 3 Parent bank 4,323 7,806 12,811 '17,314 '14,259 '18,014 '22,641 '19,734 35,203 29,931 4 Other 3,566 3,817 4,529 5,594 5,726 6,610 '6,652 6,871 6,714 7,754 5 Claims on foreigners 204,486 238,848 278,135 '271,956 '271,107 '274,384 '284,595 '286,590 295,079 308,886 6 Other branches of parent bank 45,955 55,772 70,338 '65,278 '64,126 '65,967 '69,608 '70,124 74,749 80,197 7 Banks 83,765 91,883 103,111 '101,915 '101,852 '103,329 '107,673 '107,955 111,826 118,650 8 Public borrowers1 10,613 14,634 23,737 '24,896 '24,829 '24,691 '24,835 '24,580 24,227 24,944 9 Nonbank foreigners 64,153 76,560 80,949 '79,867 '80,300 '80,397 '82,479 '83,931 84,277 85,095 10 Other assets 7,045 8,425 11,320 '12,975 '12,904 '12,326 '13,124 '13,350 13,548 14,212 11 Total payable in U.S. dollars 167,695 193,764 224,940 '224,599 '222,096 '228,587 '238,298 '234,445 249,138 263,424 12 Claims on United States 7,595 11,049 16,382 '22,043 '19,015 '23,676 '28,223 '25,536 40,799 36,447 13 Parent bank 4,264 7,692 12,625 '17,122 '14,020 '17,832 '22,387 '19,478 34,939 29,700 14 Other 3,332 3,357 3,757 4,921 4,995 5,844 '5,836 6,058 5,860 6,747 15 Claims on foreigners 156,896 178,896 203,498 '196,619 '196,560 '198,717 '203,729 '202,426 211,663 220,422 16 Other branches of parent bank.... 37,909 44,256 55,408 '50,093 '49,661 '50,790 '53,136 '53,629 58,255 61,969 17 Banks 66,331 70,786 78,686 '77,311 '77,608 '79,089 '81,392 '79,951 84,104 89,516 18 Public borrowers1 9,022 12,632 19,567 '21,092 '20,852 '20,816 '20,553 '20,188 20,083 20,644 19 Nonbank foreigners 43,634 51,222 49,837 '48,123 '48,439 '48,022 '48,648 '48,658 49,221 48,293 20 Other assets 3,204 3,820 5,060 '5,937 '6,521 '6,194 '6,346 '6,483 6,676 6,555 United Kingdom 81,466 90,933 106,593 102,144 102,876 104,915 112,881 115,217 120,703 126,018 22 Claims on United States 3,354 4,341 5,370 5,019 5,268 6,303 7,492 8,408 10,559 10,614 23 Parent bank 2,376 3,518 4,448 3,544 3,679 4,410 5,495 6,177 8,520 8,322 24 Other 978 823 922 1,475 1,589 1,893 1,997 2,231 2,039 2,292 25 Claims on foreigners 75,859 84,016 98,137 93,840 94,120 95.266 101,693 103,033 106,394 111,598 26 Other branches of parent bank.... 19,753 22,017 27,830 24,911 24,435 25,248 29,158 28,376 31,800 32,998 27 Banks 38,089 39,899 45,013 42,964 43,308 43,657 44,800 46,291 46,625 49,980 1,274 2,206 4,522 4,608 4,547 4,579 4,872 4,489 4,639 4,784 16,743 19,895 20,772 21,357 21,830 21,782 22,863 23,877 23,330 23,836 30 Other assets 2,253 2,576 3,086 3,285 3,488 3,346 3,696 3,776 3,750 3,806 31 Total payable in U.S. dollars 61,587 66,635 75,860 71,499 72,015 73,480 78,155 79,211 85,380 88,959 32 Claims on United States 3,275 4,100 5,113 4,710 4,946 5,981 7,033 7,956 10,146 10,096 2,374 3,431 4,386 3,488 3,612 4,374 5,386 6,060 8,443 8,270 34 Other 902 669 727 1,222 1.334 1,607 1,647 1,896 1,703 1,826 35 Claims on foreigners 57,488 61,408 69,416 65,214 65,356 65,968 69,451 69,496 73,503 77,145 36 Other branches of parent bank,... 17,249 18,947 22,838 20,370 19,866 20,505 23,999 23,481 26,983 27,631 37 Banks 28,983 28,530 31,482 29,393 29,924 30,211 29,803 30,626 31,318 34,306 846 1,669 3,317 3,523 3,429 3,331 3,396 3,166 3,210 3,276 10,410 12,263 11,779 11,928 12,137 11,921 12,253 12,223 11,992 11,932 824 1,126 1,331 1,575 1,713 1,531 1,671 1,759 1,731 1,718 Bahamas and Caymans 66,774 79,052 91,735 97,509 93,832 98,057 103,387 98,839 113,512 109,925 42 Claims on United States 3,508 5,782 9,635 15,774 12,859 16,360 '20,001 16,613 29,021 24,731 1,141 3,051 6,429 12,158 9,332 12,244 '15,956 12,566 24,929 19,919 44 Other 2,367 2,731 3,206 3,616 3,527 4,116 '4,045 4,047 4,092 4,812 45 Claims on foreigners 62,048 71,671 79,774 79,057 77,992 78,869 '80,579 79,476 81,370 82,296 46 Other branches of parent bank.... 8,144 11,120 12,904 12,086 11,756 11,886 11,295 '11,760 10,745 10,897 47 Banks 25,354 27,939 33,677 33,821 33,524 34,063 '36,542 '35,051 37,897 39,062 7,105 9,109 11,514 12,573 12,360 12,703 12,445 12,301 11,981 12,054 21,445 23,503 21,679 20,577 20,352 20,217 '20,297 20,364 20,747 20,283 1,217 1,599 2,326 2,678 2,981 2,828 2,807 2,750 3,121 2,898 51 Total payable in U.S. dollars 62,705 73,987 85,417 91,184 87,875 91,829 '96,995 92,216 106,767 103,027 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 Mar. Apr. May June July Aug. Sept.P All foreign countries 52 Total, all currencies 219,420 258,897 306,795 '307,839 '303,996 '311,334 '327,012 '326,545 350,544 360,783 53 To United States 32,719 44,154 57,948 '56,424 '56,020 '57,620 '61,064 '60,097 67,744 67,562 54 Parent bank 19,773 24,542 28,564 '21,387 '23,895 '23,343 '19,355 '20,256 20,242 21,420 55 Other banks in United States 12,338 '12,527 '9,871 '9,884 '15,013 '12,444 17,807 18,569 56 Nonbanks 17,046 '22,510 '22,254 '24,393 '26,696 '27,397 29,695 27,573 57 To foreigners 179,954 206,579 238,912 '241,136 '237,588 '242,513 '254,050 '253,785 270,328 280,309 58 Other branches of parent bank.... 44,370 53,244 67,496 '62,451 '62,005 '63,731 '66,631 '67,961 72,977 78,412 59 Banks 83,880 94,140 97,711 '102,393 '100,214 '101,936 '109,295 '105,296 117,794 118,256 60 Official institutions 25,829 28,110 31,936 34,275 '33,006 34,107 '34,303 35,363 33,511 35,712 61 Nonbank foreigners 25,877 31,085 41,769 '42,017 '42,363 '42,739 '43,821 '45,165 46,046 47,929 62 Other liabilities 6,747 8,163 9,935 '10,279 '10,388 '11,201 '11,898 '12,663 12,472 12,912 63 Total payable in U.S. dollars 173,071 198,572 230,810 '229,852 '226,660 '232,515 '243,521 '240,458 264,339 269,645 64 To United States 31,932 42,881 55,811 '54,334 '54,051 '55,488 '58,524 '57,455 65,126 64,910 65 Parent bank 19,559 24,213 27,493 '20,355 '22,951 '22,406 '18,333 '19,218 19,192 20,254 66 Other banks in United States 12,084 '12,282 '9,668 '9,651 '14,715 '12,137 17,352 18,113 16,234 '21,697 '21,432 '23,431 '25,476 '26,100 28,582 26,543 68 To foreigners 137,612 151,363 169,927 '169,828 '167,133 '170,847 '178,631 '176,619 192,481 197,812 69 Other branches of parent bank 37,098 43,268 53,396 '48,154 '48,393 '49,442 '51,101 '52,048 56,840 60,540 70 Banks 60,619 64,872 63,000 '65,643 '64,042 '65,404 '71,041 '65,945 78,006 76,423 22,878 23,972 26,404 28,524 27,108 28,310 28,117 29,497 27,468 29,476 17,017 19,251 27,127 '27,507 '27,590 '27,691 '28,372 '29,129 30,167 31,373 73 Other liabilities 3,527 4,328 5,072 '5,690 '5,476 '6,180 '6,366 '6,384 6,732 6,923 United Kingdom 81,466 90,933 106,593 102,144 102,876 104,915 112,881 115,217 120,703 126,018 75 To United States 5,997 7,753 9,730 10,086 10,781 11,697 12,779 13,626 17,174 18,451 76 Parent bank 1,198 1,451 1,887 1,461 1,814 2,113 1,505 1,706 2,669 2,079 7 7 7 8 N O o th n e b r a b n a k n s k s in United States If A* r7,Q / JBO 6 302 4 3 , , 2 61 3 1 2 4 3 , , 9 6 6 5 8 7 ' ' 3 5 , , 5 4 2 4 1 6 ' ' 3 6 , , 3 2 6 2 0 4 ' '7 4 , , 0 2 2 4 9 5 ' '7 4 , , 0 8 9 2 8 2 6 8 , , 1 3 5 5 5 0 7 8 , , 7 62 4 8 4 79 To foreigners 73,228 80,736 93,202 88,068 88,174 88,796 95,385 96,258 98,557 102,520 80 Other branches of parent bank... 7,092 9,376 12,786 10,910 11,023 10,931 11,353 11,193 11,507 13,045 81 Banks 36,259 37,893 39,917 38,318 39,391 38,417 42,297 41,336 46,256 45,346 17,273 18,318 20,963 21,845 20,115 21,312 23,140 24,017 21,825 24,015 12,605 15,149 19,536 16,995 17,645 18,136 18,595 19,712 18,969 20,114 84 Other liabilities 2,241 2,445 3,661 3,990 3,921 4,422 4,717 5,333 4,972 5,047 85 Total payable in U.S. dollars 63,174 67,573 77,030 72,639 72,653 74,127 79,256 80,398 86,642 90,609 86 To United States 5,849 7,480 9,328 9,756 10,439 11,200 12,199 13,077 16,572 17,817 87 Parent bank 1,182 1,416 1,836 1,418 1,780 2,047 1,460 1,637 2,613 1,975 8 8 8 9 N O o th n e b r a b n a k n s k s in United States | 4 667 6 064 4 3 , , 1 3 4 4 4 8 ' ' 4 3 , , 7 6 3 0 2 6 ' ' 5 3 , , 1 4 8 7 7 2 ' '3 5 , , 3 8 0 5 1 2 ' ' 6 4 , , 5 1 6 7 5 4 ' ' 6 4 , , 6 7 8 5 3 7 7 6 , . 8 0 9 6 1 8 7 8 , , 6 1 6 7 9 3 90 To foreigners 56,372 58,977 66,216 61,215 60,689 60,948 65,081 65,403 68,035 70,717 91 Other branches of parent bank... 5,874 7,505 9,635 7,985 7,706 7,777 7,711 7,377 7,720 8,663 92 Banks 25,527 25,608 25,287 23,017 24,002 22,684 25,436 23,893 28,698 27,284 15,423 15,482 17,091 18,030 16,197 17,486 19,093 20,288 18,119 20,257 9,547 10,382 14,203 12,183 12,784 13,001 12,841 13,845 13,498 14,513 95 Other liabilities 953 1,116 1,486 1,668 1,525 1,979 1,976 1,918 2,035 2,075 Bahamas and Caymans 66,774 79,052 91,735 97,509 93,832 98,057 103,387 98,839 113,512 109,925 97 To United States 22,721 32,176 39,431 '38,646 '37,676 '38,713 '40,023 '37,939 41,734 40,571 98 Parent bank 16,161 20,956 20,456 '14,777 '16,527 '15,957 '12,276 '12,232 11,117 13,525 99 Other banks in United States j 0,J0U 1111,Z ZI'MU 6,199 7,044 5,224 5,404 8,973 6,342 10,206 8,936 100 Nonbanks 12,776 '16,825 '15,925 '17,352 '18,774 '19,365 20,411 18,110 101 To foreigners 42,899 45,292 50,447 '56,768 '54,146 '57,184 '61,216 '58,724 69,373 67,028 102 Other branches of parent bank... 13,801 12,816 16,094 13,923 14,716 15,997 17,104 18,223 20,246 20,730 103 Banks 21,760 24,717 23,104 28,749 25,964 28,599 31,662 28,204 35,121 32,810 104 Official institutions 3,573 3,000 4,208 5,181 5,328 4,970 4,074 4,375 4,751 4,418 105 Nonbank foreigners 3,765 4,759 7,041 '8,915 '8,138 '7,618 '8,376 '7,922 9,255 9,070 106 Other liabilities 1,154 1,584 1,857 2,095 2,010 2,160 2,148 2,176 2,405 2,326 107 Total payable in U.S. dollars 63,417 74,463 87,014 92,673 88,942 92,797 97,993 93,470 107,623 104,113 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 • December 1979 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1979 Item 1976 1977 1978 Apr. May June July Aug. Sept.? Oct.f 1 Total1 95,634 131,097 162,567 148,364 141,084 144,017 147,829 148,567 149,390 146,917 By type 2 Liabilities reported by banks in the United States2 17,231 18,003 23,274 24,924 25,720 25,349 25,640 25,259 25,248 25,162 3 U.S. Treasury bills and certificates3 37,725 47,820 67,671 51,614 43,727 46,304 4499,,442255 50,146 50,842 49,411 U.S. Treasury bonds and notes 4 Marketable 11,788 32,164 35,912 36,329 36,179 36,478 37,510 38,025 38,126 38,176 5 Nonmarketable4 20,648 20,443 20,970 20,467 20,467 20,697 1199,,779977 19,547 19,547 18,497 6 U.S. securities other than U.S. Treasury securities 5 8,242 12,667 14,740 15,030 14,991 15,189 15,457 15,590 15,627 15,671 By area 45,882 70,748 92,989 85,198 81,025 83,523 86,630 86,505 87,074 85,491 8 Canada 3,406 2,334 2,506 3,044 1,993 1,979 2,116 2,185 2,412 1,954 9 Latin America and Caribbean 4,926 4,649 5,045 4,671 4,822 4,610 5,397 4,497 4,890 4,552 10 Asia 37,767 50,693 58,858 52,086 49,827 50,573 50,380 51,749 52,066 51,953 1,893 1,742 2,423 2,529 2,604 2,614 2,618 3,219 2,513 2,583 12 Other countries 6 1,760 931 746 836 813 718 688 412 435 384 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 Sept. Dec. Mar. June Sept.3' 1 Banks* own liabilities 778811 992255 11,,777711 22,,223355 11,,778811 11,,996633 22,,332233 2 Banks' own claims1 11,,883344 22,,335566 22,,995500 33,,552222 22,,660022 22,,449922 22,,660077 3 Deposits 11,,110033 994411 11,,337755 11,,665500 11,,112211 11,,330022 11,,222288 4 Other claims 773311 11,,441155 11,,557755 11,,887711 11,,448811 11,,118899 11,,337799 5 Claims of banks' domestic customers2 444466 336677 447766 552200 661122 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 Apr. May June July Aug. Sept.2' Oct.f 1 All foreigners 110,657 126,168 167,087 160,248 159,114 167,855 168,957 191,491 185,406 181,018 2 Banks' own liabilities. 78,995 86,152 93,689 100,018 97,255 117,674 111,424 108,246 3 Demand deposits... 16,803 18,996 19,201 18,367 18,105 19,326 19,088 18,910 20,235 17,962 4 Time deposits1 11,347 11,521 12,473 12,516 12,650 12,735 12,608 12,968 12,974 12,508 5 Other2 9,767 10,264 13,564 12,440 12,753 12,205 12,410 12,494 6 Own foreign offices 3 37,554 45,005 49,370 55,517 52,806 73,591 65,805 65,282 7 Banks' custody liabilities4 88,091 74,096 65,425 67,837 71,702 73,817 73,983 72,772 8 U.S. Treasury bills and certificates 5 40,744 48,906 68,202 53,434 45,103 47,425 51,467 52,258 52,429 50,452 9 Other negotiable and readily transferable instruments6 17,396 18,513 18,118 18,115 18,020 19,275 19,300 20,130 10 Other 2,493 2,150 2,203 2,296 2,215 2,284 2,254 2,190 11 Nonmonetary international and regional organizations7 5,714 3,274 2,617 2,300 2,757 2,851 3,437 3,462 2,909 2,389 12 Banks' own liabilities. 916 791 1,306 1,500 844 603 491 566 13 Demand deposits... 290 231 330 270 298 264 216 154 161 143 14 Time deposits1 205 139 94 100 85 87 79 87 82 82 15 Other2 492 422 923 1,150 549 362 248 342 16 Banks' custody liabilities4 1,701 1,509 1,451 1,350 2,593 2,859 2,418 1,823 17 U.S. Treasury bills and certificates 2,701 706 201 212 175 199 1,345 1,442 912 327 18 Other negotiable and readily transferable instruments6 1,499 1,294 1,274 1,151 1,247 1,416 1,505 1,494 19 Other 2 1 1 1 1 2 20 Official institutions8.. 54,956 65,822 90,688 76,537 69,447 71,653 75,066 75,405 76,090 74,574 21 Banks' own liabilities. 12,112 12,675 13,958 13,305 14,240 12,806 13,135 12,203 22 Demand deposits... 3,394 3,528 3,390 3,583 3,170 3,196 2,850 2,397 3,140 2,434 23 Time deposits1 2,321 1,797 2,546 2,491 2,567 2,506 2,590 2,607 2,246 2,110 24 Other2 6,176 6,601 8,221 7,604 8,800 7,801 7,749 7,660 25 Banks' custody liabilities4 78,577 63,862 55,489 58,347 60,826 62,600 62,955 62,370 26 U.S. Treasury bills and certificates 5 37,725 47,820 67,415 51,614 43,727 46,304 49,425 50,146 50,842 49,411 27 Other negotiable and readily transferable instruments6 10,992 12,209 11,692 12,003 11,350 12,401 12,048 12,902 28 Other 170 40 70 40 50 52 65 57 29 Banks9. 37,174 42,335 57,758 64,363 70,178 76,465 73,313 95,465 88,954 86,498 30 Banks' own liabilities 52,973 59,386 65,010 71,434 68,362 90,444 83,797 81,397 31 Unaffiliated foreign banks. 15,419 14,381 15,640 15,917 15,556 16,853 17,992 16,116 32 Demand deposits 9,104 10,933 11,239 10,202 10,278 11,138 11,361 11,757 12,424 10,603 33 Time deposits1 2,297 2,040 1,479 1,302 1,263 1,398 1,209 1,525 1,752 1,547 34 Other2 2,700 2,877 4,099 3,382 2,987 3,571 3,816 3,965 35 Own foreign offices3. 37,554 45,005 49,370 55,517 52,806 73,591 65,805 65,282 36 Banks' custody liabilities4 4,785 4,977 5,168 5,031 4,951 5,020 5,157 5,100 37 U.S. Treasury bills and certificates 119 300 456 508 407 347 384 406 400 38 Other negotiable and readily transferable instruments6 2,425 2,499 2,593 2,480 2,556 2,509 2,649 2,684 39 Other 2,060 2,022 2,066 2,145 2,048 2,127 2,103 2,017 40 Other foreigners 12,814 14,736 16,023 17,047 16,732 16,886 17,140 17,159 17,454 17,558 41 Banks' own liabilities. 12,995 13,299 13,415 13,778 13,809 13,821 14,001 14,079 42 Demand deposits... 4,015 4,304 4,242 4,312 4,358 4,729 4,661 4,602 4,510 4,782 43 Time deposits1 6,524 7,546 8,353 8,623 8,735 8,744 8,731 8,748 8,894 8,769 44 Other2 399 364 322 305 417 470 597 528 45 Banks'custody liabilities4 3,028 3,748 3,317 3,108 3,332 3,338 3,453 3,479 46 U.S. Treasury bills and certificates 198 240 285 1,152 693 516 350 285 269 315 47 Other negotiable and readily transferable instruments6 2,481 2,511 2,559 2,482 2,867 2,948 3,099 3,050 48 Other 262 85 66 111 115 105 86 114 49 MEMO: Negotiable time certificates of deposit held in custody for foreigners 11,007 11,151 10,824 10,633 10,709 11,082 11,247 11,336 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 • December 1979 3.16 LIABILITIES TO FOREIGNERS Continued 1979 Area and country 1976 1977 1978 Apr. May June July Aug. Sept.? Oct.33 Total. 110,657 126,168 167,087 160,248 159,114 167,855 168,957 191,491 185,406 181,018 2 Foreign countries. 104,943 122,893 164,470 157,948 156,357 165,004 165,520 188,029 182,498 178,629 3 Europe 47,076 60,295 85,387 77,532 75,221 79,513 81,510 86,110 88,605 88,049 4 Austria 346 318 513 484 475 449 444 446 444 426 5 Belgium-Luxembourg 2,187 2,531 2,552 2,359 2,282 2,419 2,493 2,714 2,920 2,710 6 Denmark 356 770 1,946 1,596 1,526 1,165 1,560 1,412 1,100 1,001 7 Finland 416 323 346 367 401 457 466 508 415 334 8 France 4,876 5,269 9,208 9,291 9,755 9,594 9,616 9,985 10,529 9,342 9 Germany 6,241 7,239 17,286 9,364 7,617 8,492 10,724 10,434 13,129 13,154 10 Greece 403 603 826 660 678 684 760 695 691 632 11 Italy 3,182 6,857 7,674 8,939 9,751 9,656 8,458 9,676 8,551 8,481 12 Netherlands 3,003 2,869 2,402 2,816 2,889 2,628 2,355 2,627 2,281 2,174 13 Norway 782 944 1,271 1,477 1,456 1,348 1,263 1,320 1,402 1,393 14 Portugal 239 273 330 231 244 353 303 411 554 621 15 Spain 559 619 870 1,077 897 1,211 1,107 1,060 1,133 1,101 16 Sweden 1,692 2,712 3,121 2,596 2,524 2,437 2,227 2,368 2,062 2,165 17 Switzerland 9,460 12,343 18,612 15,567 13,720 15,932 16,744 15,717 16,639 16,673 18 Turkey 166 130 157 110 127 156 193 160 135 236 19 United Kingdom 10,018 14,125 14,265 16,150 16,696 18,079 18,760 22,579 22,685 24,090 20 Yugoslavia 189 232 254 207 184 151 159 149 149 147 21 Other Western Europe i 2,673 1,804 3,346 3,897 3,686 3,961 3,553 3,504 3,425 3,059 22 U.S.S.R 51 98 82 84 58 62 63 80 45 53 23 Other Eastern Europe2 236 236 325 258 254 277 260 265 317 259 24 Canada. 4,659 4,607 6,966 8,760 7,959 6,674 7,610 8,376 8,319 8,640 25 Latin America and Caribbean 19,132 23,670 31,622 36,009 40,406 44,887 41,398 56,879 49,403 47,401 26 Argentina 1,534 1,416 1,484 1,483 1,886 1,891 1,693 1,757 1,929 1,694 27 Bahamas 2,770 3,596 6,743 10,064 11,682 16,383 13,022 24,085 18,442 15,686 28 Bermuda 218 321 428 351 345 402 339 415 392 399 29 Brazil 1,438 1,396 1,125 1,251 1,576 1,332 1,294 1,040 1,198 1,033 30 British West Indies 1,877 3,998 5,991 6,916 9,313 8,943 8,085 13,367 11,132 11,292 31 Chile 337 360 399 447 368 403 465 459 420 461 32 Colombia 1,021 1,221 1,756 2,079 2,192 2,402 2,292 2,378 2,188 2,243 33 Cuba 6 6 13 7 9 7 7 6 9 7 34 Ecuador 320 330 322 335 318 391 443 449 364 482 35 Guatemala 3 416 360 318 319 319 320 335 361 36 Jamaica3 52 80 78 46 104 67 175 113 37 Mexico 2,870 2,876 3,417 3,234 3,215 3,392 3,632 3,658 3,549 3,527 38 Netherlands Antilles 158 196 308 335 396 414 422 361 359 609 39 Panama 1,167 2,331 2,992 3,368 2,903 3,125 3,070 3,049 3,336 3,926 40 Peru 257 287 363 360 321 382 425 391 477 388 41 Uruguay 245 243 231 230 223 248 231 222 218 217 42 Venezuela 3,118 2,929 3.821 3,426 3,664 2,982 3,920 3,180 2,903 3,168 43 Other Latin America and Caribbean. 1,797 2,167 1,760 1,681 1,601 1,825 1,636 1,675 1,977 1,795 44 Asia 29,766 30,488 36,532 31,511 28,510 29,513 30,614 32,019 32,201 30,636 China Mainland 48 53 67 45 41 46 42 41 45 49 Taiwan 990 1,013 502 667 598 739 769 1,027 1,231 1,339 Hong Kong 894 1,094 1,256 1,459 1,496 1,555 1,452 1,571 1,634 1,542 India 638 961 790 929 1,016 940 873 704 674 496 Indonesia 340 410 449 567 394 409 509 317 463 555 Israel 392 559 674 673 650 706 621 625 626 621 Japan 14,363 14,616 21,927 14,922 12,262 12,572 13,104 13,094 13,300 10,844 Korea 438 602 795 728 986 809 816 825 938 951 Philippines 628 687 644 562 605 690 640 619 632 596 Thailand 277 264 427 343 302 413 307 330 421 304 Middle East oil-exporting countries4. 9,360 8,979 7,588 9,242 8,758 9,003 9,651 11,092 10,373 11,374 Other Asia 1,398 1,250 1,414 1,375 1,402 1,632 1,830 1,773 1,865 1,965 57 Africa 2,298 2,535 2,886 2,986 3,056 3,237 3,226 3,818 3,194 3,141 58 Egypt 333 404 404 359 297 306 378 302 245 294 59 Morocco 87 66 32 34 36 45 35 40 40 30 60 South Africa 141 174 168 246 206 316 196 174 235 194 61 Zaire 36 39 43 55 47 56 37 49 73 112 62 Oil-exporting countries5. 1,116 1,155 1,525 1,554 1,523 1,566 1,699 2,441 1,832 1,711 63 Other Africa 585 698 715 738 946 948 881 811 768 800 64 Other countries. 2,012 1,297 1,076 1,149 1,206 1,181 1,162 826 776 763 65 Australia 1,905 1,140 838 957 991 891 806 621 549 528 66 All other 107 158 239 192 215 290 355 205 227 235 67 Nonmonetary international and regional organizations 5,714 3,274 2,617 2,300 2,757 2,851 3,437 3,462 2,909 2,389 68 International 5,157 2,752 1,485 1,128 1,535 1,738 2,257 2,427 1,810 1,343 69 Latin American regional 267 278 808 872 892 829 917 793 824 755 70 Other regional® 290 245 324 300 330 284 263 242 275 291 1. Includes the Bank for International Settlements. Beginning April 4. 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 5. Comprises Algeria, Gabon, Libya, and Nigeria. Democratic Republic, Hungary, Poland, and Romania. 6. 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." 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 Apr. May June July Aug. Sept.f Oct.P 1 Total 79,301 90,206 115,307 105,507 106,554 115,297 113,417 125,772 127,297 121,097 2 Foreign countries. 79,261 90,163 115,250 105,460 106,508 115,252 113,369 125,720 127,247 121,060 3 Europe 14,776 18,114 24,235 20,538 20,267 24,377 24,097 25,774 28,390 26,180 4 Austria 63 65 140 130 150 169 188 223 191 210 Belgium-Luxembourg... 482 561 1,200 1,377 1,328 1,689 1,657 1,483 1,737 1,533 Denmark 133 173 254 199 168 140 137 141 166 116 Finland 199 172 305 250 184 186 220 247 227 230 France 1,549 2,082 3,742 2,907 2,701 3,517 3,205 33,,226600 3,766 2,736 Germany 509 644 900 806 792 843 944 888888 1,840 1,329 Greece 279 206 164 168 156 167 130 267 209 281 Italy 993 1,334 1,508 1,411 1,440 1,332 1,196 1,474 1,567 1,424 Netherlands 315 338 680 532 531 516 792 559 631 618 Norway 136 162 299 240 196 200 181 227 238 236 Portugal 88 175 171 208 190 172 235 297 325 349 Spain 745 722 1,110 803 925 994 999 969 1,126 1,117 Sweden 206 218 537 300 231 247 401 482 459 603 Switzerland 379 564 1,283 878 959 1,071 1,027 714 1,179 1,169 Turkey 249 360 283 145 119 135 118 148 119 141 United Kingdom 7,033 8,964 10,156 8,361 8,530 11,272 10,697 12,347 12,389 11,827 Yugoslavia 234 311 363 472 492 535 541 571 584 578 Other Western Europe i. 85 86 122 422 171 187 199 216 247 154 U.S.S.R 485 413 366 298 291 300 282 292 326 349 Other Eastern Europe 2. 613 566 652 631 713 704 950 969 1,064 1,178 24 Canada. 3,319 3,355 5,152 4,801 4,712 4,899 5,063 5,017 4,786 4,333 25 Latin America and Caribbean 38,879 45,850 57,166 52,585 53,708 57,328 54,015 62,927 62,509 59,164 26 Argentina 1,192 1,478 2,281 3,095 3,406 3,200 3,339 3,257 3,287 3,653 27 Bahamas 15,464 19,858 21,515 19,273 19,996 19,113 16,572 19,931 19,146 17,359 28 Bermuda 150 232 184 135 198 126 192 167 172 485 29 Brazil 4,901 4,629 6,251 6,189 6,271 6,121 6,169 6,548 7,291 7,565 30 British West Indies 5,082 6,481 9,391 5,524 4,896 9,221 6,525 10,564 9,172 6,719 31 Chile 597 675 972 970 1,058 1,089 1,120 1,173 1,339 1,396 32 Colombia 675 671 1,012 945 1,005 1,089 1,196 1,220 1,259 1,451 33 Cuba 13 10 • 4 4 4 4 6 4 4 34 Ecuador 375 517 705 903 877 908 916 921 944 1,000 35 Guatemala 3 94 95 101 95 98 100 106 110 36 Jamaica 3 40 63 64 40 47 30 32 29 37 Mexico 4,822 4,909 5,423 5,753 6,024 6,424 7,171 7,699 8,417 8,414 38 Netherlands Antilles 140 224 273 213 234 280 392 342 301 230 39 Panama 1,372 1,410 3,094 3,549 3,702 3,600 4,189 4,400 4,524 4,268 40 Peru 933 962 918 813 739 720 727 730 716 607 41 Uruguay 42 80 52 48 61 58 56 66 60 72 42 Venezuela 1,828 2,318 3,474 3,545 3,601 3,793 3,819 4,043 4,205 4,348 43 Other Latin America and Caribbean. 1,293 1,394 1,487 1,468 1,470 1,447 1,483 1,731 1,536 1,455 44 Asia 19,204 19,236 25,488 24,677 24,893 25,535 27,138 29,107 28,544 28,527 China 45 Mainland 3 10 4 20 22 9 20 29 25 55 46 Taiwan 1,344 1,719 1,499 1,818 1,812 1,882 1,891 1,970 1,936 1,930 47 Hong Kong 316 543 1,573 1,730 1,970 2,105 1,978 1,788 1,862 1,737 48 India 69 53 54 73 59 82 43 75 74 68 49 Indonesia 218 232 143 135 138 138 131 156 140 147 50 Israel 755 584 870 779 824 842 865 857 882 891 51 Japan 11,040 9,839 12,686 12,134 12,342 12,523 13,908 15,193 14,670 14,993 52 Korea 1,978 2,336 2,282 2,708 2,940 3,366 3,465 3,612 3,730 3,839 53 Philippines 719 594 680 710 697 678 743 793 638 724 54 Thailand 442 633 758 760 836 895 925 919 1,036 956 55 Middle East oil-exporting countries 4. 1,459 1,746 3,135 2,437 1,723 1,586 1,784 1,689 1,914 1,252 56 Other Asia 863 947 1,804 1,374 1,531 1,429 1,386 2,026 1,637 1,936 57 Africa 2,311 2,518 2,221 1,977 1,971 2,128 2,043 1,969 2,101 1,929 58 Egypt 126 119 107 104 125 178 115 126 120 122 59 Morocco 27 43 82 64 46 37 34 31 23 66 60 South Africa 957 1,066 860 680 719 745 745 730 704 602 61 Zaire 112 98 164 151 151 151 189 151 149 135 62 Oil-exporting countries 5. 524 510 452 462 460 478 452 398 563 435 63 Other 565 682 556 516 471 539 508 533 542 568 64 Other countries. 772 1,090 988 882 956 984 1,013 926 916 928 65 Australia 597 905 877 755 789 779 765 756 744 748 66 All other 175 186 111 127 167 205 248 170 173 180 67 Nonmonetary international and regional organizations* 40 43 56 46 46 45 47 51 50 36 1. Includes the Bank for International Settlements. Beginning April 5. Comprises Algeria, Gabon, Libya, and Nigeria. 1978, also includes Eastern European countries not listed in line 23. 6. 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. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • December 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 Apr. May June July Aug.r Sept. Oct.f 1 Total 7799,,330011 9900,,220066 111111111222222222666666666,,,,,,,,,333333333999999999222222222 111111111222222222888888888,,,,,,,,,888888888333333333999999999 111111111444444444444444444,,,,,,,,,555555555888888888888888888 2 Banks' own claims on foreigners 111111111111111111555555555,,,,,,,,,333333333000000000777777777 111000555,,,555000777 111000666,,,555555444 111111111111111111555555555,,,,,,,,,222222222999999999777777777 111111333,,,444111777 111222555,,,777777222 111111111222222222777777777,,,,,,,,,222222222999999999777777777 111222111,,,000999777 3 Foreign public borrowers 111111111000000000,,,,,,,,,111111111000000000333333333 111000,,,999888222 111000,,,555444222 111111111111111111,,,,,,,,,222222222666666666888888888 111111,,,777333777 111222,,,444999888 111111111333333333,,,,,,,,,888888888111111111777777777 111444,,,111666111 444444444111111111,,,,,,,,,444444444666666666555555555 333666,,,888555333 333555,,,888888999 333333333777777777,,,,,,,,,333333333444444444777777777 333666,,,222666555 444000,,,222222999 333333333999999999,,,,,,,,,444444444999999999000000000 333888,,,000111222 5 Unaffiliated foreign banks 444444444000000000,,,,,,,,,444444444222222222777777777 333444,,,111777444 333555,,,444111555 444444444111111111,,,,,,,,,555555555111111111222222222 333888,,,888444333 444555,,,000999111 444444444555555555,,,,,,,,,999999999666666666000000000 333999,,,888444666 6 Deposits 555555555,,,,,,,,,777777777222222222111111111 555,,,444333000 555,,,444999888 777777777,,,,,,,,,333333333888888888444444444 666,,,999999000 777,,,555444111 777777777,,,,,,,,,333333333666666666999999999 666,,,999888888 7 Other 333333333444444444,,,,,,,,,777777777000000000666666666 222888,,,777444444 222999,,,999111777 333333333444444444,,,,,,,,,111111111222222222888888888 333111,,,888555333 333777,,,555555000 333333333888888888,,,,,,,,,555555555999999999111111111 333222,,,888555777 222222222333333333,,,,,,,,,333333333111111111222222222 222333,,,444999888 222444,,,777000777 222222222555555555,,,,,,,,,111111111666666666999999999 222666,,,555777222 222777,,,999555444 222222222888888888,,,,,,,,,000000000333333333111111111 222999,,,000777888 9 Claims of banks' domestic customers2 111111111111111111,,,,,,,,,000000000888888888555555555 rrrrrrrrr 111111111333333333,,,,,,,,,555555555444444444222222222 111111111777777777,,,,,,,,,222222222999999999000000000 10 Deposits 999999999777777777222222222 rrrrrrrrrlllllllll,,,,,,,,,444444444222222222888888888 999999999555555555555555555 11 Negotiable and readily transferable instruments 3 444444444,,,,,,,,,777777777666666666222222222 666666666,,,,,,,,,222222222333333333000000000 111111111000000000,,,,,,,,,111111111666666666111111111 1122 OOuuttssttaannddiinngg ccoolllleeccttiioonnss aanndd ootthheerr ccllaaiimmss44 55,,775566 66,,117766 555555555,,,,,,,,,333333333555555555111111111 rrrrrrrrr555555555,,,,,,,,,888888888888888888333333333 666666666,,,,,,,,,111111111777777777555555555 1133 MMEEMMOO** CCuussttoommeerr lliiaabbiilliittyy oonn aacccceeppttaanncceess...... 111111111444444444,,,,,,,,,999999999111111111888888888 111111111666666666,,,,,,,,,888888888444444444777777777 111111111999999999,,,,,,,,,777777777444444444666666666 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States 5 11,674 16,550 17,468 15,321 18,217 18,081 15,438 n.a. 1. U.S. banks: includes amounts due frpm own foreign branches and 4. Data for March 1978 and for period prior to that are outstanding foreign subsidiaries consolidated in "Consolidated Report of Condition" collections only. filed with bank regulatory agencies. Agencies„ branches, and majority- 5. Includes demand and time deposits and negotiable and nonnegotiable owned subsidiaries of foreign banks: principally amounts due from head certificates of deposit denominated in U.S. dollars issued by banks abroad. office or parent foreign bank, and foreign branches, agencies, or wholly For description of changes in data reported by nonbanks, see July 1979 owned subsidiaries of head office or parent foreign bank. BULLETIN, p. 550. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks NOTE. Beginning April 1978, data for banks' own claims are given for the account of their domestic customers. on a monthly basis, but the data for claims of banks' domestic customers 3. Principally negotiable time certificates of deposit and bankers ac- are available on a quarterly basis only. ceptances. 3.19 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1978 1979 Maturity; by borrower and area June Sept. Dec. Mar. Juner Sept. 1 Total 55,902 60,096 73,633 71,528 77,648 87,233 By borrower 2 Maturity of 1 year or less1 44,558 47,230 58,341 55,347 59,999 67,877 3 Foreign public borrowers 3,128 3,709 4,579 4,627 4,583 5,949 4 All other foreigners 41,430 43,521 53,762 50,720 55,416 61,928 5 Maturity of over 1 year1 11,343 12,866 15,292 16,181 17,650 19,356 6 Foreign public borrowers 3,243 4,230 5,336 5,935 6,405 7,637 7 All other foreigners 8,101 8,635 9,956 10,246 11,244 11,719 By area Maturity of 1 year or less1 8 Europe 9,710 10,513 15,121 12,376 14,040 16,754 9 Canada 1,598 1,953 2,670 2,512 2,703 2,462 10 Latin American and Caribbean, 17,439 18,624 20,912 21,634 23,071 25,556 11 Asia 13,831 14,014 17,572 16,993 18,181 21,182 12 Africa 1,457 1,535 1,496 1,290 1,438 1,400 13 All other2 523 591 569 541 565 523 Maturity of over 1 year1 14 Europe 2,920 3,102 3,149 3,108 3,486 3,667 15 Canada 344 794 1,426 1,456 1,221 1,371 16 Latin America and Caribbean.. 5,900 6,877 8,469 9,336 10,267 11,794 17 Asia 1,297 1,303 1,399 1,471 1,879 1,713 18 Africa 631 580 636 629 614 622 19 Allother2 252 211 214 180 183 189 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 Sept. Dec. Mar. June 7 Sept. Dec. Mar. June Sept. i 167.0 207.7 226.7 239.4 247.2 245.7 246.7 '265.4 '263.6 '274.6 293.8 2 G-10 countries and Switzerland 88.0 100.1 108.8 115.3 116.6 112.8 113.7 124.9 '118.9 '125.2 135.2 3 Belgium-Luxembourg 5.3 6.1 7.1 8.4 8.3 8.3 8.4 9.0 9.4 '9.7 10.7 4 France 8.5 10.0 10.5 11.0 11.4 11.4 11.7 12.2 11.7 '12.9 12.0 5 Germany 7.8 8.7 8.6 9.6 9.0 9.1 9.7 11.4 10.5 10.8 12.9 6 Italy 5.2 5.8 6.0 6.5 6.0 6.4 6.0 6.6 5.7 6.1 6.1 7 Netherlands 2.8 2.8 3.0 3.5 3.4 3.4 3.5 4.4 3.8 4.0 4.7 8 Sweden 1.0 1.2 1.9 1.9 2.0 2.1 2.2 2.1 2.0 2.0 2.3 9 Switzerland 2.4 3.0 3.3 3.3 4.0 4.1 4.3 5.4 4.5 4.8 5.0 10 United Kingdom 36.3 41.5 44.1 46.5 46.5 45.0 44.4 47.2 '46.5 '50.3 53.2 11 Canada 3.8 5.1 6.6 5.8 6.9 5.1 4.9 5.9 5.8 5.5 6.0 12 Japan 14.9 15.9 17.6 18.8 19.1 17.9 18.6 20.7 19.0 19.1 22.3 13 Other developed countries 10.7 15.1 18.1 18.6 20.5 19.3 18.7 '19.4 18.3 '18.4 19.7 14 Austria .7 1.2 1.3 1.3 1.5 1.5 1.5 1.7 1.7 '1.8 2.0 15 Denmark .6 1.0 1.5 1.6 1.6 1.7 1.9 2.0 2.0 2.0 2.0 16 Finland .9 1.1 1.2 1.2 1.2 1 i 1.0 1.2 1.1 1 i 1.2 17 Greece 1.4 1.7 2.0 2.2 2.7 2.3 2.2 2.3 2.3 2.2 2.3 18 Norway 1.4 1.5 1.8 1.9 1.9 2.1 2.1 2.1 2.1 2.1 2.3 19 Portugal .3 .4 .6 .6 .7 .6 .5 .6 .6 .5 .7 20 Spain 1.9 2.8 3.5 3.6 3.6 3.6 3.5 3.4 3.0 3.0 3.3 21 Turkey .6 1.3 1.4 1.5 1.5 1.4 1.5 1.5 1.4 1.4 1.4 22 Other Western Europe .6 .7 1.2 .9 1.4 1.2 1.0 '1.2 1.1 1.2 1.5 23 South Africa 1.2 2.2 2.3 2.4 2.5 2.4 2.2 2.0 1.7 1.8 1.7 24 Australia 1.3 1.2 1.5 1.4 1.9 1.4 1.3 1.4 1.3 1.3 1.3 25 Oil-exporting countries2 6.9 12.6 16.5 17.6 19.2 19.1 20.4 '22.7 '22.6 '22.7 23.3 26 Ecuador .4 .7 1.1 1.1 1.3 1.4 1.6 1.6 1.5 1.6 1.6 27 Venezuela 2.3 4.1 5.1 5.5 5.5 5.6 6.2 7.2 7.2 7.5 7.9 28 Indonesia 1.6 2.2 2.2 2.2 2.1 1.9 1.9 2.0 1.9 1.9 1.9 29 Middle East countries 1.6 4.2 6.3 6.9 8.3 8.3 8.7 '9.4 '9.4 '9.1 9.1 30 African countries 1.0 1.4 1.9 1.9 2.0 1.9 2.0 2.5 2.6 2.6 2.8 31 Non-oil developing countries 34.2 43.1 47.6 50.0 49.9 48.9 49.5 52.4 '53.8 56.1 59.8 Latin America 32 Argentina 1.7 1.9 2.4 2.9 3.0 3.0 2.9 3.0 2.9 3.5 4.1 33 Brazil 8.0 11.1 11.8 12.7 13.0 13.3 14.0 14.9 '15.2 15.0 15.1 34 Chile .5 .8 .8 .9 1 1 1.3 1.3 1.6 1.7 1.8 2.2 35 Colombia 1.2 1.3 1.2 1.3 1.3 1.3 1.3 1.4 1.5 1.5 1.7 36 Mexico 9.0 11.7 12.6 11.9 11.2 11.0 10.7 10.8 10.9 11.0 11.6 37 Peru 1.4 1.8 1.9 1.9 1.7 1.8 1.8 1.7 1.6 1.4 1.4 38 Other Latin America 2.6 2.7 2.5 2.7 3.5 3.3 3.4 3.6 3.5 3.3 3.7 Asia China 39 Mainland * * * * * * * * , i 1 . 1 40 Taiwan 1.7 2.3 2.9 3.1 2.5 2.4 2.4 2.9 3!l 3! 3 3.5 41 India .2 .2 .3 .3 .3 .2 .3 .2 .2 .2 .2 42 Israel .9 1.0 .7 .9 .8 .7 .7 1.0 1.0 .9 1.0 43 Korea (South) 2.4 3.1 3.6 3.9 3.7 3.6 3.5 3.9 4.2 5.0 5.3 44 Malaysia 3 .3 .5 .7 .7 .6 .6 .6 .6 .6 .7 .7 45 Philippines 1.7 2.2 2.4 2.5 2.6 2.7 2.8 2.8 3.2 3.7 3.7 46 Thailand .7 .7 .9 1.7 1.1 1.1 1.1 1.2 1.2 1.4 1.6 47 Other Asia .4 .4 .4 .3 .4 .3 .3 .2 .3 .4 .3 Africa 48 Egypt .4 .4 .4 .3 .3 .3 .4 .4 .4 .7 1.2 49 Morocco .1 .2 .4 .5 .4 .5 .5 .6 .6 .5 .5 50 Zaire .3 .2 .3 .3 .3 .2 .2 .2 .2 .2 .2 51 Other Africa4 .5 .6 1.2 1.2 1.4 1.2 1.3 1.4 1.4 1.5 1.7 52 Eastern Europe 3.7 5.2 5.5 6.5 6.3 6.4 6.6 6.9 6.7 6.7 7.3 53 U.S.S.R 1.0 1.5 1.5 1.6 1.4 1.4 1.4 1.3 1.1 .9 .9 54 Yugoslavia .6 .8 1.0 1.1 1.2 1.3 1.3 1.5 1.6 1.7 1.8 55 Other 2.1 2.8 3.0 3.8 3.7 3.7 3.9 4.1 4.0 4.1 4.6 56 Offshore banking centers 19.4 26.2 25.3 26.1 29.0 31.1 29.2 30.0 '33.8 '35.6 37.9 57 Bahamas 7.3 11.8 9.9 9.8 11.3 11.8 11.1 9.9 '12.9 '13.3 13.0 58 Bermuda .5 .5 .5 .6 .6 .7 .7 .7 .6 .7 .7 59 Cayman Islands and other British West Indies... 2.5 3.8 4.3 3.8 4.5 6.3 6.2 6.9 '6.7 '7.2 9. 1 60 Netherlands Antilles .6 .6 .6 .7 .7 .6 .6 .8 '.8 '1.0 1.1 61 Panama 2.6 2.7 2.8 3.1 3.2 3.2 3.1 2.9 3.3 '3.5 3.0 62 Lebanon .2 . 1 .1 .2 .2 . l . 1 .1 . 1 .1 .2 63 Hong Kong 1.6 2.3 3.1 3.7 4.0 4.1 4.0 4.3 4.7 '5.2 5.5 64 Singapore 3.8 4.4 3.9 3.7 4.0 3.8 2.9 3.9 '4.2 4.2 4.9 65 Others 5 .1 * .1 .5 .5 .5 .5 .5 .5 .4 .4 66 Miscellaneous and unallocated^ 4.1 5.4 5.0 5.3 5.7 8.1 8.6 9.1 9.5 9.9 10.6 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 • December 1979 3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1979 1979 CCoouunnttrryy oorr aarreeaa 1977 1978 J O a c n t. . v - Apr. May June July Aug. Sept.f Oct.? Holdings (end of period)4 1 Estimated total i 38,640 44,938 48,131 47,218 47 .,494 48,991 49,575 50,257 50,888 2 Foreign countries1 33,894 39,817 43,177 43,055 43;454 44,544 44,979 45,060 45,206 3 Europe1 13,936 17,072 20,593 20,667 21,047 22,213 22,558 22,599 22,692 4 Belgium-Luxembourg 19 19 19 20 24 24 24 65 65 5 Germany1 3,168 8,705 10,812 10,828 10,751 10,781 10,952 10,953 11,082 6 Netherlands 911 1,358 1,637 1,672 1,695 1,655 1,577 1,667 1,660 7 Sweden 100 285 415 479 484 481 525 588 600 8 Switzerland 497 977 1,510 1,458 1,582 1,843 2,048 2,496 2,427 9 United Kingdom 8,888 5,373 5,735 5,697 6,016 6,938 6,895 6,193 6,191 10 Other Western Europe 349 354 464 513 496 491 538 637 666 11 Eastern Europe 4 12 Canada 288 152 226 216 227 232 233 233 235 13 Latin America and Caribbean 551 416 397 387 387 537 539 539 541 14 Venezuela 199 144 183 183 183 183 183 183 183 15 Other Latin American and Caribbean. 183 110 52 42 42 192 192 192 194 16 Netherlands Antilles 170 162 162 162 162 162 165 165 164 17 Asia 18,745 21,488 21,273 21,097 21,103 20,874 20,960 21,000 21,050 18 Japan 6,860 11,528 12,982 13,014 13,040 13,090 12,818 12,789 12,591 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 4,954 4,163 4,040 4,447 4,596 5,197 5,682 22 International 4,646 5,089 4,915 4,114 3,993 4,400 4,551 5,150 5,636 23 Latin American regional 100 33 38 48 48 48 46 46 46 Transactions (net purchases, or sales (—), during period) 24 Total1 22,843 6,297 5,951 602 -913 277 1,497 584 681 632 25 Foreign countries1 21,130 5,921 5,389 246 -122 399 1,090 435 81 146 26 Official institutions 20,377 3,747 2,265 242 -149 298 1,033 515 101 50 27 Other foreign1 753 2,175 3,122 4 27 101 57 -81 -20 94 28 Nonmonetary international and regional organizations 11,,771133 375 564 356 -791 -121 407 149 600 487 MEMO: Oil-exporting countries 29 Middle East 2 4,451 -1,785 -1,247 -452 -190 8 -193 394 72 299 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 May June July Aug. Sept. Oct. NOV.P 352 424 367 407 326 372 325 347 351 490 Assets held in custody 2 U.S. Treasury securities1 66,532 91,962 117,126 91,327 95,301 99,004 98,794 100,383 97,965 100,877 3 Earmarked gold2 16,414 15,988 15,463 15,381 15,356 15,322 15,296 15,294 15,253 15,230 1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable NOTE. Excludes deposits and U.S. Treasury securities held for inter- U.S. Treasury securities payable in dollars and in foreign currencies. national and regional organizations. Earmarked gold is gold held for 2. The value of earmarked gold increased because of the changes in foreign and international accounts and is not included in the gold stock par value of the U.S. dollar in May 1972 and in October 1973. of the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Investment Transactions A65 3.23 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1979 1979 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 1977 1978 O Ja c n t. - f Apr. May June July Aug. Sept p Oct p U.S. corporate securities STOCKS 1 Foreign purchases 14,155 20,142 18,351 1,615 1,579 1,860 1,766 2,382 2,074 2,382 2 Foreign sales 11,479 17,723 17,103 1,520 1,389 1,794 1,774 2,224 2,023 2,372 3 Net purchases, or sales (—) 2,676 2,420 1,249 95 191 66 -8 158 51 10 4 Foreign countries 2,661 2,466 1,235 94 191 67 -8 156 58 10 5 Europe 1,006 1,283 64 -2 136 11 -42 -48 -107 -34 6 France 40 47 133 31 48 41 18 19 -20 -48 7 Germany 291 620 -193 -59 — 1 -16 -19 -30 -37 -32 8 Netherlands 22 -22 -58 -10 -7 -15 8 -3 * 38 9 Switzerland 152 -585 -302 -16 18 -3 -52 -87 -64 -68 10 United Kingdom 613 1,230 530 52 74 5 -12 97 19 83 11 Canada 65 74 486 30 47 33 30 78 145 64 12 Latin America and Caribbean 127 151 -52 22 -18 -28 -17 45 -8 -93 13 Middle East* 1,390 781 491 48 20 15 -7 44 41 59 14 Other Asia 59 187 257 -3 9 39 32 34 -12 18 15 Africa 5 -13 -13 -3 -2 -3 -4 -4 -2 -1 16 Other countries 8 3 3 2 -1 -1 1 7 1 -3 17 Nonmonetary international and regional organizations 15 -46 13 1 * -1 * 2 -7 * BONDS 2 18 Foreign purchases 7,739 7,975 7,079 589 863 1,081 869 729 398 863 3,560 5,517 6,122 378 922 793 648 673 288 680 4,179 2,458 957 210 -59 288 221 56 110 183 21 Foreign countries 4,083 2,049 981 106 87 254 222 71 23 44 22 Europe 1,850 908 842 139 121 163 159 -5 19 84 -34 30 -1 -2 — I 8 -34 -3 -1 1 -20 68 79 19 6 24 -11 -10 — i -7 25 Netherlands 72 12 -167 -20 -37 -32 -9 -19 -2 -7 94 -100 -15 8 -41 — i -4 -8 4 * 1,690 930 898 134 151 169 232 24 23 98 28 Canada 141 102 106 6 4 * 8 9 17 8 29 Latin America and Caribbean 64 98 85 9 7 -10 11 10 -4 6 30 Middle Easti 1,695 810 -153 -61 -73 52 40 50 -7 -39 31 Other Asia 338 131 99 14 28 48 5 7 -4 -16 32 Africa -6 -1 2 * * * * * 1 • * 1 1 -1 * * * * * 1 34 Nonmonetary international and regional 9966 409 -24 104 -146 34 -1 -14 87 140 Foreign securities 35 Stocks, net purchases, or sales (—) -410 527 -656 13 67 -18 -67 -100 -338 -198 2,255 3,666 3,744 369 554 403 329 377 420 466 2,665 3,139 4,400 356 487 421 396 476 758 663 38 Bonds, net purchases, or sales (—) -5,096 -4,018 -3,325 -11 10 -689 -345 -543 -725 -75 8,040 11,043 10,164 893 860 1,011 984 1,575 829 1,081 13,136 15,061 13,490 904 851 1,700 1,330 2,118 1,554 1,156 41 Net purchases, or sales (—) of stocks and bonds.. -5,506 -3,491 -3,981 2 77 -707 -412 -643 -1,063 -273 42 Foreign countries -3,949 -3,314 -3,205 -11 76 -425 -436 -559 -914 -277 -1,100 -40 -1,236 -165 -25 -144 -305 -290 -120 -38 44 Canada -2,404 -3,238 -2,399 10 85 -221 -178 -128 -891 -358 -82 201 390 55 26 53 30 30 * 11 -97 350 34 84 -14 -114 16 -172 92 112 47 Africa 2 -441 -15 2 4 4 * — J * -6 48 Other countries -267 -146 20 2 1 -4 2 2 5 2 49 Nonmonetary international and regional organizations -1,557 -177 -776 13 1 -282 24 -83 -150 4 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 • December 1979 3.24 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States 1 Millions of dollars, end of period 1978 1979 Type, and area or country 1976 1977 1978' June Sept. Mar. June Sept. Dec. 1 Total. 10,099 11,085 14,192 11,870 12,786 13,683 14,641 2 Payable in dollars 9,390 10,284 11,136 11,044 11,955 10,984 12,126 3 Payable in foreign currencies2.. 709 801 3,056 825 831 2,699 2,515 By type 4 Financial liabilities 5,734 5,505 5,319 5 Payable in dollars 3,469 3,433 3,453 6 Payable in foreign currencies. 2,265 2,072 1,866 7 Commercial liabilities 8,458 8,178 9,322 8 Trade payables 3,929 3,445 4,213 9 Advance receipts and other liabilities. 4,529 4,733 5,109 10 Payable in dollars 7,667 7,551 8,673 11 Payable in foreign currencies. 791 627 648 By area or country Financial liabilities 12 Europe 1,772 3,528 3,336 13 Belgium-Luxembourg. 287 264 313 14 France 162 138 142 15 Germany 371 329 295 16 Netherlands 364 396 375 17 Switzerland 204 190 181 18 United Kingdom ,064 2,009 1,838 19 Canada. 203 224 195 20 Latin America and Caribbean. 996 997 1,052 21 Bahamas 422 407 438 22 Bermuda 56 41 38 23 Brazil 10 13 19 24 British West Indies 122 132 118 25 Mexico 102 101 132 26 Venezuela 46 52 65 27 Asia 754 745 725 28 Japan 671 667 656 29 Middle East oil-exporting countries 3. 48 36 36 30 Africa 5 5 6 31 Oil-exporting countries4. 2 1 2 32 All others. Commercial liabilities 33 Europe 2,930 2,804 3,207 34 Belgium-Luxembourg. 75 70 80 35 France 317 339 339 36 Germany 529 394 473 37 Netherlands 208 194 202 38 Switzerland 314 329 439 39 United Kingdom 760 804 946 40 Canada. 663 612 659 41 Latin America 990 1,138 1,313 42 Bahamas 25 16 65 43 Bermuda 95 40 80 44 Brazil 74 61 165 45 British West Indies. 53 89 121 46 Mexico 105 236 203 47 Venezuela 303 356 323 48 Asia 2,946 2,632 3,003 49 Japan 431 412 500 50 Middle East oil-exporting countries3. 1,543 1,117 1,222 51 Africa 724 754 894 52 Oil-exporting countries4. 313 345 412 53 All other 5. 205 239 246 1. For a description of the changes in the International Statistics 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, tables, see July 1979 BULLETIN, p. 550. and United Arab Emirates (Trucial States). 2. Prior to December 1978, foreign currency clata include only liabilities 4. Comprises Algeria, Gabon, Libya, and Nigeria. denominated in foreign currencies with an original maturity of less than 5. Includes nonmonetary international and regional organizations. one year. 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 1 Millions of dollars, end of period 1978 1979 Type, and area or country 1976 1977 1978 r June Sept. Mar. June Sept. Dec. 1 Total. 19,350 21,298 27,193 23,229 23,260 29,714 29,048 2 Payable in dollars 18,300 19,880 24,223 21,665 21,292 26,939 26,181 3 Payable in foreign currencies 2. 1,050 1,418 2,971 1,564 1,968 2,775 2,867 By type 4 Financial claims 15,884 18,995 18,009 5 Deposits 10,770 13,899 12,835 6 Payable in dollars 9,707 12,991 11,873 7 Payable in foreign currencies. 1,063 908 961 8 Other financial claims 5,115 5,096 5,174 9 Payable in dollars 3,541 3,567 3,635 10 Payable in foreign currencies. 1,574 1,529 1,540 11 Commercial claims 11,309 10,719 11,039 12 Trade receivables 10,662 9,963 10,325 13 Advance payments and other claims. 647 756 714 14 Payable in dollars 10,976 10,381 10,673 15 Payable in foreign currencies. 333 338 366 By area or country Financial claims 16 Europe 5,010 5,191 5.486 17 Belgium-Luxembourg. 48 63 54 18 France 174 170 182 19 Germany 530 266 361 20 Netherlands 103 86 80 21 Switzerland 98 96 81 22 United Kingdom 3,814 4,283 4,491 23 Canada. 4,463 5,137 4,964 24 Latin America and Caribbean. 5,271 7,598 6.487 25 Bahamas 2,857 4,098 3,165 26 Bermuda 80 62 57 27 Brazil 151 137 122 28 British West Indies 1,275 2,438 2,264 29 Mexico 168 166 164 30 Venezuela 148 141 148 31 Asia 918 826 797 32 Japan 306 206 216 33 Middle East oil-exporting countries 3 . 18 17 17 34 Africa 182 204 227 35 Oil-exporting countries 4. 10 26 23 36 All others. 41 39 48 Commercial claims 37 Europe 3,939 3,818 3,820 38 Belgium-Luxembourg. 143 172 169 39 France 609 490 472 40 Germany 395 501 420 41 Netherlands 257 271 303 42 Switzerland 208 248 243 43 United Kingdom 803 681 712 44 Canada., 1,105 1,113 1,144 45 Latin America and Caribbean. 2,535 2,382 2,403 46 Bahamas 109 117 98 47 Bermuda 215 241 118 48 Brazil 625 490 500 49 British West Indies 9 10 25 50 Mexico 506 488 582 51 Venezuela 292 273 295 52 Asia 3,090 2,757 2,985 53 Japan 977 895 1,008 54 Middle East oil-exporting countries 3. 712 670 691 55 Africa 451 446 490 56 Oil-exporting countries 4. 137 132 140 57 All others. 188 203 198 1. For a description of the changes in the International Statistics 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, tables, see July 1979 BULLETIN, p. 550. and United Arab Emirates (Trucial States). 2. Prior to December 1978, foreign currency data include only liabilities 4. Comprises Algeria, Gabon, Libya, and Nigeria. denominated in foreign currencies with an original maturity of less than 5. Includes nonmonetary international and regional organizations. one year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • December 1979 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Nov. 30,1979 Rate on Nov. 30,1979 Rate on Nov. 30,1979 Country Country CCoouunnttrryy Per- Month Per- Month Per- Month cent effective cent effective cent effective Argentina 18.0 Feb. 1972 France 9.5 Aug. 1977 9.0 Nov. 1979 Austria... 3.75 Jan. 1979 Germany, Fed. Rep. of. 6.0 Nov. 1979 9.0 Nov. 1979 Belgium.. 10.0 Oct. 1979 Italy 12.0 Oct. 1979 2.0 Nov. 1978 Brazil 33.0 Nov. 1978 Japan 6.25 Nov. 1979 United Kingdom 17.0 Nov. 1979 Canada.. 14.0 Oct. 1979 Mexico 4.5 June 1942 7.5 JJuullyy 11997788 Denmark. 11.0 Sept. 1979 Netherlands 9.5 Nov. 1979 NOTE. Rates shown are mainly those at which the central bank either more than one rate applicable to such discounts or advances, the rate discounts or makes advances against eligible commercial paper and/or shown is the one at which it is understood the central bank transacts the government securities for commercial banks or brokers. For countries with largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1979 Country, or type 1976 1977 1978 June July Aug. Sept. Oct. Nov. 5.58 6.03 8.74 10.52 10.87 11.53 12.61 14.59 15.00 11.35 8.07 9.18 13.02 13.87 14.06 14.11 14.12 16.09 9.39 7.47 8.52 11.17 11.29 11.78 11.89 13.34 14.19 4.19 4.30 3.67 6.40 6.77 7.04 7.82 8.84 9.57 5 Switzerland 1.45 2.56 0.74 1.51 1.19 1.67 1.94 2.57 3.97 7.02 4.73 6.53 8.55 9.53 9.51 9.82 10.09 11.86 8.65 9.20 8.10 8.63 9.90 10.85 11.67 12.14 12.72 8 Italy 16.32 14.26 11.40 11.27 11.46 11.50 11.51 12.71 13.12 9 Belgium 10.25 6.95 7.14 9.09 11.18 11.42 11.88 12.99 14.17 10 Japan 7.70 6.22 4.75 5.46 6.26 7.00 7.00 7.01 8.13 NOTE. Rates are for 3-month interbank loans except for the following: francs and over; and Japan, loans and discounts that can be called after Canada, finance company paper; Belgium, time deposits of 20 million being held over a minimum of two month-ends. 3.28 FOREIGN EXCHANGE RATES Cents per unit of foreign currency 1979 CCoouunnttrryy//ccuurrrreennccyy 11997766 11997777 11997788 June July Aug. Sept. Oct. Nov. 1 Australia/dollar 122.15 110.82 114.41 111.11 112.83 112.83 112.63 111.31 109.34 2 Austria/schilling 5.5744 6.0494 6.8958 7.2081 7.4628 7.4786 7.7211 7.7570 7.8345 3 Belgium/franc 2.5921 2.7911 3.1809 3.3048 3.4240 3.4140 3.4684 3.4656 3.4822 4 Canada/dollar 101.41 94.112 87.729 85.296 85.920 85.425 85.814 85.084 84.771 5 Denmark/krone 16.546 16.658 18.156 18.401 19.072 18.964 19.279 19.110 19.034 6 Finland/markka 25.938 24.913 24.337 25.250 26.040 26.075 26.242 26.483 26.428 7 France/franc 20.942 20.344 22.218 22.914 23.535 23.491 23.826 23.809 24.065 8 Germany/deutsche mark... 39.737 43.079 49.867 53.084 54.817 54.666 55.758 55.884 56.470 9 India/rupee 11.148 11.406 12.207 12.317 12.651 12.484 12.289 12.159 12.209 10 Ireland/pound 180.48 174.49 191.84 200.01 206.79 205.79 209.18 208.28 208.70 11 Italy/lira .12044 .11328 .11782 .11828 .12192 .12219 .12326 .12112 .12112 12 Japan/yen .33741 .37342 .47981 .45750 .46189 .45890 .44963 .43405 .40834 13 Malaysia/ringgit 39.340 40.620 43.210 45.474 46.422 46.363 46.382 46.074 45.661 14 Mexico/peso 6.9161 4.4239 4.3896 4.3767 4.3767 4.3804 4.3858 4.3825 4.3726 15 Netherlands/guilder 37.846 40.752 46.284 48.374 49.821 49.805 50.635 50.379 50.686 16 New Zealand/dollar 99.115 96.893 103.64 103.29 102.04 101.40 100.28 98.564 96.813 17 Norway/krone 18.327 18.789 19.079 19.398 19.824 19.877 20.080 20.143 19.928 18 Portugal/escudo 3.3159 2.6234 2.2782 2.0192 2.0551 2.0332 2.0297 1.9992 1.9852 19 South Africa/rand 114.85 114.99 115.01 118.31 118.46 119.38 119.91 120.79 120.32 20 Spain/peseta 1.4958 1.3287 1.3073 1.5131 1.5118 1.5132 1.5135 1.5117 1.5051 21 Sri Lanka/rupee 11.908 11.964 6.3834 6.4059 6.3786 6.4174 6.4126 6.4000 6.4053 22 Sweden/krona 22.957 22.383 22.139 23.028 23.687 23.693 23.860 23.747 23.677 23 Switzerland/franc 40.013 41.714 56.283 58.884 60.650 60.349 62.087 61.350 60.870 24 United Kingdom/pound... 180.48 174.49 191.84 211.19 225.98 223.68 219.66 214.38 213.52 MEMO: 25 United States/dollar i 105.57 103.31 92.39 89.56 86.93 87.24 86.73 87.67 88.12 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

69 Guide to Tabular Presentation and Statistical Releases GUIDE TO TABULAR PRESENTATION Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. Not available p Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column head- IPCs Individuals, partnerships, and corporations ing when more than half of figures in that REITs Real estate investment trusts column are changed.) RPs Repurchase agreements * Amounts insignificant in terms of the last SMSAs Standard metropolitan statistical areas decimal place shown in the table (for Cell not applicable example, less than 500,000 when the smallest unit given is millions) General Information Minus signs are used to indicate (1) a decrease, (2) as well as direct obligations of the Treasury. "State a negative figure, or (3) an outflow. and local government" also includes municipalities, "U.S. government securities" may include guaran- special districts, and other political subdivisions. teed issues of U.S. government agencies (the flow of In some of the tables details do not add to totals funds figures also include not fully guaranteed issues) because of rounding. STATISTICAL RELEASES List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for individual releases December 1979 A-76 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 Federal Reserve Board of Governors PAUL A. VOLCKER, Chairman HENRY C. WALLICH FREDERICK H. SCHULTZ, Vice Chairman PHILIP E. COLDWELL OFFICE OF BOARD MEMBERS OFFICE OF STAFF DIRECTOR FOR MONETARY AND FINANCIAL POLICY JOSEPH R. COYNE, Assistant to the Board KENNETH A. GUENTHER, Assistant to the Board STEPHEN H. AXILROD, Staff Director JAY PAUL BRENNEMAN, Special Assistant to the EDWARD C. ETTIN, Deputy Staff Director Board MURRAY ALTMANN, Assistant to the Board FRANK O'BRIEN, JR., Special Assistant to the PETER M. KEIR, Assistant to the Board Board STANLEY J. SIGEL, Assistant to the Board JOSEPH S. SIMS, Special Assistant to the Board NORMAND R. V. BERNARD, Special Assistant to DONALD J. WINN, Special Assistant to the Board the Board LEGAL DIVISION DIVISION OF RESEARCH AND STATISTICS NEAL L. PETERSEN, General Counsel JAMES L. KICHLINE, Director 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 (A dm in is tra tion) 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 DIVISION OF BANKING JEFFREY R. SHAFER, Deputy Associate Director DALE W. HENDERSON, Assistant Director SUPERVISION AND REGULATION LARRY J. PROMISEL, Assistant Director RALPH W. SMITH, JR., Assistant Director JOHN E. RYAN, 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 71 and Official Staff J. CHARLES PARTEE EMMETT J. RICE NANCY H. TEETERS OFFICE OF OFFICE OF STAFF DIRECTOR FOR STAFF DIRECTOR FOR MANAGEMENT FEDERAL RESERVE BANK ACTIVITIES JOHN M. DENKLER, Staff Director WILLIAM H. WALLACE, Staff Director EDWARD T. MULRENIN, Assistant Staff Director HARRY A. GUINTER, Assistant Director for JOSEPH W. DANIELS, SR., Director of Equal Contingency Planning Employment Opportunity DIVISION OF FEDERAL RESERVE DIVISION OF DATA PROCESSING BANK OPERATIONS CHARLES L. HAMPTON, Director JAMES R. KUDLINSKI, Director BRUCE M. BEARDSLEY, Associate Director CLYDE H. FARNSWORTH, JR., Deputy Director UYLESS D. BLACK, Assistant Director WALTER ALTHAUSEN, Assistant Director GLENN L. CUMMINS, Assistant Director CHARLES W. BENNETT, Assistant Director ROBERT J. ZEMEL, Assistant Director BRIAN M. CAREY, Assistant Director LORIN S. MEEDER, Assistant Director P. D. RING, Assistant Director DIVISION OF PERSONNEL RAYMOND L. TEED, Assistant Director DAVID L. SHANNON, Director JOHN R. WEIS, Assistant Director CHARLES W. WOOD, Assistant Director OFFICE OF THE CONTROLLER JOHN KAKALEC, Controller GEORGE E. LIVINGSTON, Assistant 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 Federal Reserve Bulletin • December 1979 FOMC and Advisory Councils FEDERAL OPEN MARKET COMMITTEE PAUL A. VOLCKER, Chairman JOHN BALLES MONROE KIMBREL FREDERICK H. SCHULTZ ROBERT BLACK ROBERT MAYO NANCY H. TEETERS PHILIP E. COLDWELL J. CHARLES PARTEE HENRY C. WALLICH EMMETT J. RICE MURRAY ALTMANN, Secretary EDWARD C. ETTIN, Associate Economist NORMAND R. V. BERNARD, Assistant Secretary GEORGE B. HENRY, Associate Economist NEAL L. PETERSEN, General Counsel PETER M. KEIR, Associate Economist JAMES H. OLTMAN, Deputy General Counsel MICHAEL KERAN, Associate Economist ROBERT E. MANNION, Assistant General Counsel JAMES L. KICHLINE, Associate Economist STEPHEN H. AXILROD, Economist JAMES 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 Angeles, California, Chairman MARCIA A. HAKALA, Omaha, Nebraska, Vice Chairman ROLAND E. BRANDEL, San Francisco, California PERCY W. LOY, Portland, Oregon JAMES L. BROWN, Milwaukee, Wisconsin R. C. MORGAN, El Paso, Texas MARK E. BUDNITZ, Atlanta, Georgia FLORENCE M. RICE, New York, New York JOHN G. BULL, Fort Lauderdale, Florida RALPH J. ROHNER, Washington, D. C. ROBERT V. BULLOCK, Frankfort, Kentucky RAYMOND J. SAULNIER, New York, New York CARL FELSENFELD, New York, New York HENRY B. SCHECHTER, Washington, D. C. JEAN A. Fox, Pittsburgh, Pennsylvania E. G. SCHUHART II, Amarillo, Texas RICHARD H. HOLTON, Berkeley, California BLAIR C. SHICK, Cambridge, Massachusetts EDNA DECOURSEY JOHNSON, Baltimore, Mary- THOMAS R. SWAN, Portland, Maine land ANNE GARY TAYLOR, Alexandria, Virginia RICHARD F. KERR, Cincinnati, Ohio RICHARD A. VAN WINKLE, Salt Lake City, Utah ROBERT J. KLEIN, New York, New York RICHARD D. WAGNER, Simsbury, Connecticut HARVEY M. KUHNLEY, Minneapolis, Minnesota MARY W. WALKER, Monroe, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 73 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Robert M. Solow Frank E. Morris Robert P. Henderson James A. Mcintosh NEW YORK* 10045 Robert H. Knight Vacancy Boris Yavitz Thomas M. Timlen Buffalo 14240 Frederick D. Berkeley, III John T. Keane PHILADELPHIA 19105 John W. Eckman David P. Eastburn Werner C. Brown Richard L. Smoot CLEVELAND* 44101 Robert E. Kirby Willis J. Winn Arnold R. Weber Walter H. MacDonald Cincinnati 45201 Lawrence H. Rogers, II Robert E. Showalter Pittsburgh 15230 G. J. Tankersley Robert D. Duggan RICHMOND* 23261 Maceo A. Sloan Robert P. Black Steven Muller George C. Rankin Baltimore 21203 I. E. Killian Jimmie R. Monhollon Charlotte 28230 Robert E. Elberson Stuart P. Fishburne Culpeper Communications and Records Center 22701 Albert D. Tinkelenberg ATLANTA 30303 Vacancy 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 Pierre 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 Memphis 38101 Frank A. Jones, Jr. L. Terry Britt MINNEAPOLIS 55480 Stephen F. Keating Mark H. Willes William G. Phillips Thomas E. Gainor Helena 59601 Patricia P. Douglas Betty J. Lindstrom KANSAS CITY 64198 Harold W. Andersen Roger Guffey Joseph H. Williams Henry R. Czerwinski Denver 80217 A. L. Feldman Wayne W. Martin Oklahoma City 73125 Christine H. Anthony William G. Evans Omaha 68102 Durward B. Varner Robert D. Hamilton DALLAS 75222 Irving A. Mathews Ernest T. Baughman Gerald D. Hines Robert H. Boykin El Paso 79999 A. J. Losee Joel L. Koonce Jr. Houston 77001 Gene M. Woodfin J. Z. Rowe San Antonio 78295 Pat Legan Carl H. Moore SAN FRANCISCO 94120 Joseph F. Alibrandi John J. Balles Cornell C. Maier John B. Williams Los Angeles 90051 Caroline L. Ahmanson Richard C. Dunn Portland 97208 Loran L. Stewart Angelo S. Carella Salt Lake City 84125 Wendell J. Ashton A. Grant Holman Seattle 98124 Lloyd E. Cooney Gerald R. Kelly * Additional offices of these Banks are located at Lewiston, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 Federal Reserve Board Publications Available from Publications Services, Room MP-510, payable to the order of the Board of Governors of the Board of Governors of the Federal Reserve System, 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 FEDERAL RESERVE BULLETIN. Monthly. $20.00 per pp. $1.00 each; 10 or more to one address, $.85 each. year or $2.00 each in the United States, its 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 each. Elsewhere, $24.00 per year or $2.50 each. MARKET. 1969. 48 pp. $.25 each; 10 or more to one address, $.20 each. BANKING AND MONETARY STATISTICS, 1914-1941. (Reprint of Part 1 only) 1976. 682 pp. $5.00. JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOVERNMENT SECURITIES MARKET: STAFF STUD- BANKING AND MONETARY STATISTICS, 1941-1970. IES—PART 1. 1970. 86 pp. $.50 each; 10 or more 1976. 1,168 pp. $15.00. to one address, $.40 each. PART 2. 1971. 153 pp. ANNUAL STATISTICAL DIGEST and PART 3. 1973. 131 pp. Each volume $1.00; 1971-75. 1976. 339 pp. $4.00 per copy for each 10 or more to one address, $.85 each. paid subscription to Federal Reserve Bulletin-, OPEN MARKET POLICIES AND OPERATING 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; 10 or more to one address, $3.60 each. HISTORICAL CHART BOOK. Issued annually in Sept. 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. CAPITAL MARKET DEVELOPMENTS. Weekly. $15.00 per LENDING FUNCTIONS OF THE FEDERAL RESERVE year or $.40 each in the United States, its posses- BANKS. 1973. 271 pp. $3.50 each; 10 or more to 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

Federal Reserve Board Publications A 75 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 GNMA-GUARANTEED PASSTHROUGH SECURITY: THE EQUAL CREDIT OPPORTUNITY ACT AND . MARKET DEVELOPMENT AND IMPLICATIONS FOR CREDIT RIGHTS IN HOUSING. THE GROWTH AND STABILITY OF HOME MORTGAGE THE EQUAL CREDIT OPPORTUNITY ACT AND . . . LENDING, by David F. Seiders. Dec. 1979. 65 pp. DOCTORS, LAWYERS, SMALL RETAILERS, AND OTHERS WHO MAY PROVIDE INCIDENTAL CREDIT. Printed in Full in the Bulletin THE EQUAL CREDIT OPPORTUNITY ACT AND . (Included under "Reprints, "j WOMEN. FAIR CREDIT BILLING. THE FEDERAL OPEN MARKET COMMITTEE REPRINTS FEDERAL RESERVE BANK BOARD OF DIRECTORS (Except for Staff Papers, Staff Studies, and some FEDERAL RESERVE BANKS leading articles, most of the articles reprinted do not A GUIDE TO FEDERAL RESERVE REGULATIONS. How TO FILE A CONSUMER CREDIT COMPLAINT. exceed 12 pages.) IF YOU BORROW TO BUY STOCK. IF YOU USE A CREDIT CARD. MEASURES OF SECURITY CREDIT. 12/70. TRUTH IN LEASING. REVISION OF BANK CREDIT SERIES. 12/71. U.S. CURRENCY. ASSETS AND LIABILITIES OF FOREIGN BRANCHES OF WHAT TRUTH IN LENDING MEANS TO YOU. U.S. BANKS. 2/72. BANK DEBITS, DEPOSITS, AND DEPOSIT TURNOVER— REVISED SERIES. 7/72. STAFF STUDIES YIELDS ON NEWLY ISSUED CORPORATE BONDS. 9/72. (Studies and papers on economic and financial sub- ONE-BANK HOLDING COMPANIES BEFORE THE 1970 jects that are of general interest.) AMENDMENTS. 12/72. YIELDS ON RECENTLY OFFERED CORPORATE BONDS. Summaries Only Printed in the Bulletin 5/73. (Requests to obtain single copies of the full text or RATES ON CONSUMER INSTALMENT LOANS. 9/73. to be added to the mailing list for the series may be NEW SERIES FOR LARGE MANUFACTURING CORPORAsent to Publications Services.) TIONS. 10/73. THE STRUCTURE OF MARGIN CREDIT. 4/75. INTEREST RATE CEILINGS AND DISINTERMEDIATION, by AN ASSESSMENT OF BANK HOLDING COMPANIES, Staff Edward F. McKelvey. Sept. 1978. 105 pp. Economic Study by Robert J. Lawrence and Samuel H. Talley. 1/76. THE RELATIONSHIP BETWEEN RESERVE RATIOS AND THE MONETARY AGGREGATES UNDER RESERVES INDUSTRIAL ELECTRIC POWER USE. 1/76. AND FEDERAL FUNDS RATE OPERATING TARGETS, REVISION OF MONEY STOCK MEASURES. 2/76. by Kenneth J. Kopecky. Dec. 1978. 58 pp. REVISED SERIES FOR MEMBER BANK DEPOSITS AND TIE-INS BETWEEN THE GRANTING OF CREDIT AND AGGREGATE RESERVES. 4/76. SALES OF INSURANCE BY BANK HOLDING COMPA- INDUSTRIAL PRODUCTION—1976 REVISION. 6/76. NIES AND OTHER LENDERS, by Robert A. Eisenbeis FEDERAL RESERVE OPERATIONS IN PAYMENT MECHAand Paul R. Schweitzer. Feb. 1979. 75 pp. NISMS: A SUMMARY. 6/76. GEOGRAPHIC EXPANSION OF BANKS AND CHANGES IN NEW ESTIMATES OF CAPACITY UTILIZATION: MANU- BANKING STRUCTURE, by Stephen A. Rhoades. FACTURING AND MATERIALS. 11/76. Mar. 1979. 40 pp. BANK HOLDING COMPANY FINANCIAL DEVELOPMENTS IMPACT OF THE DOLLAR DEPRECIATION ON THE U.S. IN 1976. 4/77. PRICE LEVEL: AN ANALYTICAL SURVEY OF EM- SURVEY OF TERMS OF BANK LENDING—NEW SERIES. PIRICAL ESTIMATES, by Peter Hooper and Barbara 5/77. R. Lowrey. Apr. 1979. 53 pp. THE COMMERCIAL PAPER MARKET. 6/77. INNOVATIONS IN BANK LOAN CONTRACTING: RECENT THE FEDERAL BUDGET IN THE 1970'S. 9/78. 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

76 Federal Reserve Bulletin • December 1979 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PUBLIC PERIODIC RELEASES—BOARD OF GOVER- NORS OF THE FEDERAL RESERVE SYSTEM1 Date or Period Approximate to which Data Weekly Releases Release Day2 Refer Week ended previous Aggregate Reserves and Member Bank Deposits. H.3 (502) Tuesday Wednesday Week ended previous Actions of the Board; Applications and Reports H.2 (501) Friday Saturday Assets and Liabilities of All Commercial Banks in the United Wednesday, 2 weeks Wednesday States. H.8 (510) earlier Changes in State Member Banks. K.3 (615) Week ended previous Tuesday Saturday Deposits, Reserves, and Borrowings of Member Banks. H.7 (509) Wednesday Week ended 3 Wednesdays earlier Factors Affecting Bank Reserves and Condition Statement of Thursday Week ended previous Federal Reserve Banks. H.4.1 (503) Wednesday Week ended previous Monday Foreign Exchange Rates. H.10 (512) Friday Thursday Week ended Wednes- Money Stock Measures. H.6 (508) day of previous week Reserve Positions of Major Reserve City Banks. H.5 (507) Friday Week ended Wednesday of previous week Selected Interest Rates. H.15 (519) Monday Week ended previous Saturday Weekly Consolidated Condition Report of Large Commercial Wednesday Wednesday, 1 week Banks and Domestic Subsidiaries. H.4.2 (504) earlier Weekly Summary of Banking and Credit Measures. H.9 (511) Thursday Week ended previous Wednesday; and week ended Wednesday of previous week Semimonthly Release Research Library—Recent Acquisitions. J.2 (601) 1st and 16th Period since last of month release Monthly Releases Capacity Utilization: Manufacturing and Materials. G.3 (402) 17th of month Previous month Changes in Status of Banks and Branches. G.4.5 (404) 25th of month Previous month 1 The Board's official mailing list is being computerized, and three-digit identification codes have been assigned to each individual release. 2 Release dates are those anticipated! or usually met. However, it should be noted that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 77 Date or Period Approximate to which Data Release Day Refer Commercial and Industrial Loans to U.S. Addresses Excluding 1st Wednesday Last Wednesday of Bankers' Acceptances and Commercial Paper of month previous month by Industry. Consumer Installment Credit. G.19 (421) 3rd working 2nd month previous day of month Debits and Deposit Turnover at Commercial Banks. G.6 (406) 25th of month Previous month Federal Reserve System Memorandum on Exchange Charges. 5th of month Period since last K. 14 (628) release Finance Companies. G.20 (422) 5th working 2nd month previous day of month Foreign Exchange Rates. G.5 (405) 1st of month Previous month Industrial Production. G.12.3 (414) 15th of month Previous month Loan Commitments at Selected Large Commercial Banks. G.21 (423) 20th of month 2nd month previous Loans and Investments at all Commercial Banks. G.7 (407) 20th of month Previous month Major Nondeposit Funds of Commercial Banks. G.10 (411) 20th of month Previous month Maturity Distribution of Outstanding Negotiable Time Certificates 24th of month Last Wednesday of of Deposit. G.9 (410) previous month Monthly Report of Condition for U.S. Agencies, Branches, and 15th of month 2nd month previous Domestic Banking Subsidiaries of Foreign Banks. G.ll (412) Selected Interest Rates. G.13 (415) 6th of month Previous month Summary of Equity Security Transactions. G.16 (418) Last week of Release date month Quarterly Releases Automobile Credit E.4 (114) 14th of April, Previous quarter July, October, and January Finance Rates and Other Terms on Selected Types of Consumer 25th of January, 2nd month previous Installment Credit Extended by Major Finance Companies. April, July, and E. 10 (120) October Flow of Funds: Seasonally adjusted and unadjusted. Z.l (780) 15th of Febru- Previous quarter ary, May, August, and November Geographical Distribution of Assets and Liabilities of Major 15 th of Previous quarter Foreign Branches of U.S. Banks. E.ll (121) March, June, September, and December Interest Rates on Selected Consumer Installment Loans at 15th of March, February, May, Reporting Commercial Banks. E.12 (122) June, Septem- August, and ber, and November December Survey of Terms of Bank Lending. E.2 (111) 15th of March, February, May, June, Septem- August, and ber, and November December Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 Federal Reserve Bulletin • December 1979 Date or Period Approximate to which Data Semiannual Releases Release Day Refer Assets and Liabilities of Commercial Banks, by Class of Bank. May and No- End of previous De- E.3.4 (113) vember cember and June February Previous 6 Check Collection Services-Federal Reserve System. (E.9) 119 and July months April, and Release date List of OTC Margin Stocks. E.7 (117) October Assets, Liabilities, and Capital Accounts of Commercial and May and No- End of previous De- Mutual Savings Banks—Reports of Call (Joint Release of vember cember and June the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and Office of the Comptroller of the Currency. Published and distributed by FDIC.) Annual Releases Aggregate Summaries of Annual Surveys of Security Credit February End of previous June Extension. C.2 (101) Insured Bank Income by Size of Bank. C.4 (103) End of May Previous year State Member Banks of Federal Reserve System and Non- 1st quarter of End of previous year member Banks that Maintain Clearing Accounts with year Federal Reserve Banks. G.4 (403) (Supplements issued monthly) 15th of month Previous month ORDER FORM • Send latest issue of the item(s) checked above. • Add to mailing list for periodic releases checked above. (Please allow six weeks for additions or changes on mailing lists.) • A remittance of $ is enclosed. Name Organization Street Address City State Zip Code Country Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

79 Index to Statistical Tables References are to pages A-3 through A-68 although the prefix 66A" 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 Production, 48, 49 Federal Reserve Banks, 4, 12 Subject to reserve requirements, 15 Turnover, 13 BANKERS balances, 16, 18, 20, 21, 22 Discount rates at Reserve Banks (See Interest rates) (See also Foreigners) Discounts and advances by Reserve Banks (See Loans) Banks for Cooperatives, 35 Dividends, corporate, 37 Bonds (See also U.S. government securities) New issues, 36 EMPLOYMENT, 46, 47 Yields, 3 Eurodollars, 27 Branch banks Assets and liabilities of foreign branches of U.S. FARM mortgage loans, 41 banks, 56 Farmers Home Administration, 41 Liabilities of U.S. banks to their foreign Federal agency obligations, 4, 11, 12, 13, 34 branches, 23 Federal and federally sponsored credit agencies, 35 Business activity, 46 Federal finance Business expenditures on new plant and Debt subject to statutory limitation and equipment, 38 types and ownership of gross debt, 32 Business loans (See Commercial and industrial Receipts and outlays, 30, 31 loans) Treasury operating balance, 30 Federal Financing Bank, 30, 35 Federal funds, 3, 6, 18, 20, 21, 22, 27, 30 CAPACITY utilization, 46 Federal Home Loan Banks, 35 Capital accounts Federal Home Loan Mortgage Corporation, 35, 40, 41 Banks, by classes, 16, 17, 19, 20 Federal Housing Administration, 35, 40, 41 Federal Reserve Banks, 12 Federal Intermediate Credit Banks, 35 Central banks, 68 Federal Land Banks, 35, 41 Certificates of deposit, 23, 27 Federal National Mortgage Association, 35, 40, 41 Commercial and industrial loans Federal Reserve Banks Commercial banks, 15, 18, 26 Condition statement, 12 Weekly reporting banks, 20, 21, 22, 23, 24 Discount rates (See Interest rates) Commercial banks U.S. government securities held, 4, 12, 13, 32, 33 Assets and liabilities, 3, 15-19, 20-23 Federal Reserve credit, 4, 5, 12, 13 Business loans, 26 Federal Reserve notes, 12 Commercial and industrial loans, 24, 26 Federally sponsored credit agencies, 35 Consumer loans held, by type, 42, 43 Finance companies Loans sold outright, 23 Assets and liabilities, 39 Number, by classes, 16, 17, 19 Business credit, 39 Real estate mortgages held, by type of holder and Loans, 20, 21, 22, 42, 43 property, 41 Paper, 25, 27 Commercial paper, 3, 25, 27, 39 Financial institutions, loans to, 18, 20-22 Condition statements (See Assets and liabilities) Float, 4 Construction, 46, 50 Flow of funds, 44, 45 Consumer installment credit, 42, 43 Foreign Consumer prices, 46, 51 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

80 Federal Reserve Bulletin • December 1979 HOUSING, new and existing units, 50 REAL estate loans Banks, by classes, 18, 20-22, 29, 41 INCOME, personal and national, 46, 52, 53 Life insurance companies, 29 Industrial production, 46, 48 Mortgage terms, yields, and activity, 3, 40 Installment loans, 42, 43 Type of holder and property mortgaged, 41 Insurance companies, 29, 32, 33, 41 Reserve position, basic, member banks, 6 Insured commercial banks, 17, 18, 19 Reserve requirements, member banks, 9 Interbank loans and deposits, 16, 17 Reserves Interest rates Commercial banks, 16, 18, 20, 21, 22 Bonds, 3 Federal Reserve Banks, 12 Business loans of banks, 26 Member banks, 3, 4, 5, 15, 16, 18 Federal Reserve Banks, 3, 8 U.S. reserve assets, 55 Foreign countries, 68 Residential mortgage loans, 40 Money and capital markets, 3, 27 Retail credit and retail sales, 42, 43, 46 Mortgages, 3, 40 Prime rate, commercial banks, 26 Time and savings deposits, 10 SAVING Flow of funds, 44, 45 International capital transactions of the United National income accounts, 53 States, 56-67 Savings and loan assns., 3, 10, 29, 33, 41, 44 International organizations, 56-61, 64-67 Savings deposits (See Time deposits) Inventories, 52 Savings institutions, selected assets, 29 Investment companies, issues and cissets, 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 TAX receipts, federal, 31 Capacity utilization, 46 Production, 46, 49 Time deposits, 3, 10, 13, 15, 16, 17, 19, 20, 21, Margin requirements, 28 22, 23 Member banks Trade, foreign, 55 Treasury currency, Treasury cash, 4 Assets and liabilities, by classes, 16, 17, 18 Treasury deposits, 4, 12, 30 Borrowings at Federal Reserve Banks, 5, 12 Treasury operating balance, 30 Number, by classes, 16, 17, 19 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 81 Index to Volume 65 GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES Other ("A" pages) Other ("A' ' pages) Index to Index to Issue Text Total tables Issue Text Total tables January ... 1-86 1-78 76-77 July 525- 582 1-78 76-77 February .. 87-172 1-78 76-77 August 583- 678 1-84 80-81 March 173-298 1-78 76-77 September.. 679- 784 1-78 76-77 April 299-376 1-78 76-77 October ... 785- 878 1-78 76-77 May 377-446 1-78 76-77 November.. 879- 944 1-82 80-81 June 447-524 1-82 79-80 December .. 945-1020 1-92 79-80 The "A' ' pages referred to in this index are in the December issue. Pages Pages ADVERTISING practices of banks, statement ... 818 Bank holding companies—Continued Armitage, Kenneth, article 603 Divestiture plans required by Bank Holding Articles Company Act, Board letter 49 Automated clearinghouse, update 525 International banking operations 248,545, Bank lending practices, 1977-79, changes 797 552, 640, 969, 1000 Capacity utilization rates, revision 606 Rating system, adoption 140 Check processing at Federal Reserve offices .. 97 Regulation Y (See Regulations, Board of Gov- Commercial bank credit and bank nondeposit ernors) funds, new measures 707 Rules Regarding Delegation of Authority and Economy in 1978 1 Rules of Procedure, amendments 64,560, Federal Reserve float, reducing 945 852, 925, 1004 Financial developments, quarterly reports to Staff studies 110, 608 Congress (See Statements to Congress) Tie-ins between granting of credit and sale of Foreign exchange operations of Treasury and insurance, statement 536 Federal Reserve, reports ....201, 456, 720, 951 Bank Holding Company Act Industrial production index, revision 603 Divestiture plans required by, Board letter 49 Insured commercial bank income in 1978 692 Orders issued International Banking Act, implementation 785 Akron Financial, Inc 781 Labor market developments 447 Alabama Bancorporation 443 Letters of credit, standby, survey 716 Alaska Bancorporation 163 Monetary aggregates, proposals for redefining.. 13 Algemene Bank Nederland, N.V., and Monetary policy, U.S., role of operating A.B.N.-Stichting, Amsterdam, The guides 679 Netherlands 658 Mortgage and housing markets, recent American National Bancorp, Inc 443 developments 173 American National Creighton Company 674 Time and savings deposits at commercial banks, American Pioneer Life Insurance Company.. 345 surveys 104, 387 Ankeny Bancshares, Inc 83 U.S. international transactions in 1978 299 Applewood Bankcorp, Inc 781 Ashton, Wendell J., appointed director, Salt Lake Arapahoe County Funding Company 876 City Branch 297 Arkansas Best Corporation 66 Assets and liabilities of overseas branches of Ashland Bancshares, Inc 674 member banks from year-end reports of Associated Banc-Corp 674 condition 834 Austin Bancshares Corporation 659 Avoca Company 521 BANK holding companies (For orders issued to Bank of Virginia Company 877 individual companies under the Bank Holding BankAmerica Corporation 70, 261, 262 Company Act, see Bank Holding Company Barclays Bank Limited and Barclays Bank Act) International Limited, London, England .. 504 Bills, proposed, statement 890 Barnet Banks of Florida, Inc 263, 1005 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Federal Reserve Bulletin • December 1979 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Basalt Bancorp, Inc 876 First City Bancorporation of Texas, Baylor Bancshares, Inc 1017 Inc 160, 862 Beggs Bancshares, Inc 1018 First Community Bancorporation 577 Bowman Capital Co 279 First Dover Investment Company, Inc 443 CB & T Bancshares, Inc 170 First Financial Bancshares, Inc 83 C.S.B. Financial Inc 941 First Harrah Corp 663 Cabool Banshares, Inc . 876 First Hawaiian, Inc 269 Caneyville Bancshares, Inc 759 First International Bancshares, Inc 520, 782 Capital Management, Inc 169 First Michigan Bank Corporation 67 Catoosa Bancshares, Inc 159 First National Bancshares Corporation 674 CENTER POINT BANSHARES First National Bank Shares, Ltd 563 CORP 1018 First National Cincinnati Corporation 577 Central Wisconsin Bancshares, Inc 170 First National Corporation 279 Central Wisconsin Bankshares, Inc 761 First National Holding Corp 437 Charles Stewart Mott Foundation 778 First National Stanton Corp 674 Charter Company 370 First Newman Grove Bankshares Chenoa Corporation 169, 170 Corp 663 Chevalier, Inc 374 First Northern Bancorporation 373 Citicorp 265, 507, 666, 1014 First Osmond Corporation 876 Citizens and Southern National Bank 673 First Railroad & Banking Company of Citizens Ban-Corporation 162, 762 Georgia 675 Citizens Bancgroup & Co 521 First Security Corporation 674, 781, 941 Citizens Bancorp 674 First State Bancorporation 256 Citizens Bancorporation 373, 435, 674 First United Bancorporation, Inc 941 Citizens Bankers, Inc 373 FirstBancorp, Inc 764 Colonial American Bankshares Corp. .. 268, 522 Ford Financial Corporation 443 Columbian Financial Corporation 661 Frankfort Bancorporation, Inc 781 Commerce Bancshares, Inc 1018 Gary-Wheaton Corporation 374 Commerce Southwest, Inc 65, 875 Gibson Investment Company 781 Commercial Bankshares, Inc 1018 Glen-An Corporation 258 Community Bancorp 561 Goodenow Bancorporation 781 Continental Banksystem, Inc 878 Granbury Bancshares, Inc 1018 Corning Investment Company, Inc 253 Grand Ridge Bancorporation 674 County National Bancorporation 763 Guaranty Bancshares, Inc 866 Credit and Commerce American Holdings, Hawkeye Bancorporation 495, 577 N.V., Netherlands Antilles, and Credit and Hongkong and Shanghai Banking Corpora- Commerce American Investment, B.V., tion, Hong Kong; Kellett, N.V., Curacao, Netherlands 254 Netherlands Antilles; and HSBC Holdings Crescent Bancshares, Inc 662 B.V., Amsterdam, The Netherlands 354 Cushing Bancshares, Inc 521 Horizon Bancorp 577 Delaware Service Co., Inc 346 Indecorp, Inc 664 Deutsche Bank AG, Frankfurt, Federal Independent Bank Corporation 577, 867 Republic of Germany 436 Independent Bankshares Corporation 577 Dublin Bancshares, Inc 941 IRVING BANCORP, INC 1018 Eagle Bancshares, Inc 1018 Jacksonville National Corporation 347 Ellis Banking Corporation 443 Jacomo Bancshares, Inc 521 Equimark Corporation 873 Kent Bancshares, Inc 521 European American Bancorp 667 Kilgore Bancshares, Inc 876 F&M National Corporation 165 Kupka's, Inc 781 F.N.B. Corporation 514 Lindale Bancshares, Inc 521 Fairmont Bancorporation, Inc 443 Lockney Bancshares, Inc 169 Falsbuilding, Inc 521 Longview Financial Corporation 496 Fennimore Bancorporation, Inc 373 Loof Investment Co 942 Fidelity Union Bancorporation 1006 M.F.G Investments, Inc 279 Financial General Bankshares, Inc 72 M.S.B. Agency, Inc 68, 870 First Alabama Bancshares, Inc 781 Mainland Bancshares, Inc ,521 First Banc Group of Ohio, Inc 373, 877, 936 Maitland Bancshares, Inc 1018 First Bancorp, Inc 374 Mannford Bancshares, Inc 674 First Bancorporation of Holdenville, Inc. ... 373 Manufacturers Hanover First Bank Corporation 942 Corporation 73, 360, 565 First Bankshares of Wyoming 443 Manufacturers National Corporation 373 First Busey Corporation 861 Marion Bank Holding Company 876 First Charter Financial Corporation 940 Marsh Investments, B.V., Rotterdam, The First Chicago Corporation 937 Netherlands 279 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 65 A 83 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Marsh Investments, N.V., Curacao, Nether- Standard Chartered Bank Limited and Standlands Antilles 279 ard Chartered Overseas Holdings Limited, Maryland National Corporation 271 London, England; and Standard Chartered Memphis Trust Company 438 Bancorp 350 Meno Bancshares, Inc 876 Stanley Bancorporation, Inc 781 Mercantile Bancorporation, Inc 84 Suburban Bancorp, Inc 577 Mercantile Bankshares Corporation 444 Summit Bancorporation 522 Mercantile Texas Corporation 259 Sun Banks of Florida 877 Metropolitan Bancorporation 279 Swift County Financial Corporation 782 Metropolitan Bancshares, Inc 577 T & C Bancorp, Inc 169 Michigan National Corporation 497 T.N.B. Financial Corporation 570 Mid-America Bancshares, Inc 444 TALEN, INC 781 Mid-Continental Bancorporation, Inc 1018 Taylor Bancor, Inc 443 Miles Service Corporation 169 Tennessee Valley Bancorp, Inc 444 Minneapolis Holding Company 431 Texas American Bancshares, Inc. 279, 500, 781 Minonk Bancshares, Inc 578 Third National Corporation 374 Missouri Country Bancshares, Inc 871 Thomson Investment Company, Inc 772 Moberly City Bancshares, Inc 564 Toledo Trustcorp, Inc 444 Montgomery Bancorporation, Inc 577 Tonganoxie Bancshares, Inc 1018 Moore Bancshares Corp 1018 Town Financial Corporation 1018 NB Corporation 522, 577, 934 Treleco, Inc 373 NCNB Corporation 166 Tri City Bancshares Corporation 1018 National City Corp 348, 576, 782, 877,1009 Trust Company of Georgia 353, 668, 942 National Detroit Corporation 272, 521, 928 Tuscumbia Bancshares, Inc 781 National Westminster Bank Limited, London, United Bancshares, Inc 521 England, and Nat West Holdings, Inc. ... 357 United Dairy Farmers Investment Company.. 1015 Northwest Bancorporation 432 United Oklahoma Bankshares, Inc 363 Northwest Ohio Bancshares, Inc 83, 169 United Virginia Bancshares, Incorporated ... 371 Northwestern Financial Corporation 566 Utah Bancorporation 1017 Old Kent Financial Corporation 499,1010 Valley Bancorporation 782 Old Stone Corporation 361 Victoria Bankshares, Inc 877 Onarga Bancorp, Inc 942 Wachovia Corporation 76 Osceola Bancorporation, Inc 942 Wells Fargo & Company 578, 670 942 Otto Bremer Company 766 Wesbanco, Inc 782 Palisade Bancshares, Inc 169 White Oak Bancshares, Inc 502 PanNational Group, Inc 665 WISCUB, Inc 773 Peoples of Indianola, Inc 522 Wolbach Insurance Agency, Inc 1018 Pioneer Bancorporation, Inc 373 Wood & Huston Bancorporation, Inc 503 Pioneer Bancshares, Inc 1018 Wyoming National Corporation 69, 434 Pittsburgh National Corporation 522 Yellow Medicine Bancshares, Inc 373 Presque Isle Bancorporation 443 Bank Holding Company Tax Act of 1976 Purdy Bancshares, Inc 1018 Certifications issued R & B Management Corporation 877 AZL Resources, Inc 1016 Rainier Bancorporation 782 C.I.T. Financial Corporation 369, 440, 571 Reliable Bancshares, Inc 1018 Chippewa Valley Agency, Ltd., Inc 938 Republic Bancorporation, Inc 568 Ector Shopping Center 365 Republic of Texas Corporation 161, 674 Ellingson Corporation 78 SCB Financial Corporation 877 First Missouri Banks, Inc 78, 366 SafraCorp 349 Frank J. Eicher Company, Inc 442 St. Anthony National Company 674 GATX Corporation 780, 1017 St. Joseph Agency, Inc 443 Hansen-Lawrence Agency, Inc 80, 518 St. Michael Bancorporation, Inc 674 Houston Corporation Savings Banks Shares, Inc 767 Jacobus Company 80 Schuyler Bancorp, Inc 674 Kemper Corporation 939 Security Bancshares Co 930 Kyanite Mining Corporation 671 Security BancShares of Montana, Inc 260 Lindoe, Inc 519 Security Pacific Corporation 73 NCNB Corporation 573 Seneca Bancshares, Inc 877 Northwestern Financial Corporation 168 Society Corporation 280, 569 Republic Industries, Inc 672 South Plains Bancshares, Inc 169 Republic of Texas Corporation 275, 367 Southeast Banking Corporation 932 Sapp Insurance Agency, Inc 82 Southern Bancorporation of Alabama 781 Shelter Resources, Inc 274 Southwest Bancshares, Inc 443, 933 Sloan State Corporation 278 Southwest Florida Banks, Inc 83, 877 Sperry and Hutchinson Company 277 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 Federal Reserve Bulletin • December 1979 Pages Pages Bank lending practices, 1977-79, article on Banks, staff study on geographic expansion 221 changes 797 Bennett, J. Wayland, elected Class B director, Bank Merger Act Dallas 294 Orders issued Berry, C. M., appointed director, Seattle Branch 297 Central Bank of Northern Virginia, Bailey's Biechler, John R., elected Class A director, Crossroads, Va 170 Philadelphia 284 Central Fidelity Bank, Bailey's Crossroads, Board of Governors (See also Federal Reserve Fairfax County, Va 878 System) Central Trust Company, Reynoldsburg, Bank holding companies, actions concerning Ohio 280 (See Bank holding companies) Chartered Bank of London, London, Interpretations (See Interpretations) England 350 Litigation, pending cases .84, 171, 280, 444, 523 Commercial Trust Company of New Jersey, 578, 675, 783, 878, 943,1019 Jersey City, N.J 444 Members Cortland Savings & Banking Company, Cort- Lists, 1913-79 580, 677 land, Ohio 782 Miller, G. William, resignation as Member Elliott State Bank, Jacksonville, 111 371 and Chairman 632 Exchange Bank of Temple Terrace, Temple Rice, Emmett J., appointment 545 Terrace, Fla 942 Schultz, Frederick H., appointment, and des- Fidelity American Bank, Norfolk, Va...l70, 522 ignation as Vice Chairman 632 First City Bank of Dallas, Dallas, Tex 516 Volcker, Paul A., appointment, and designa- Midwest Bank & Trust Company, Cleveland, tion as Chairman 631 Ohio 374 Members and officers, list A70 Naumkeag Trust Company, Salem, Mass. .. 675 Publications (See Publications and releases) Ohio Citizens Trust Company, Toledo, Regulations (See Regulations) Ohio 517 Rulemaking procedures, expanded, statement ... 137 Southern Bank, Richmond, Va 938 Rules (See Rules) Union Savings Bank and Trust Company, Staff changes Steubenville, Ohio 782 Farnsworth, Clyde H 835 United California Bank, Los Angeles, Hamilton, Albert R 745 Calif 1013 Jacobsen, Robert A 550 United Jersey Bank, Hackensack, N.J... 170, 675 Kudlinski, James R 835 United Virginia Bank/Commonwealth, McDonough, William N 745 Richmond, Va 878 Mannion, Robert E 745 Walker Bank and Trust Company, Salt Lake Mattingly, J. Virgil 322 City, Utah 874 Mulrenin, Edward T 143, 745 Bank supervision and regulation (federal) O'Connell, Thomas J 143 Advertising practices of banks, statement 818 Raiken, Allen L 550 Bank examination procedures, revision 406 Reynolds, John E 143 Bank holding companies 140, 248 Schwartz, Gilbert T 322 Banking system, statement on condition 463 Taylor, William 408 Community Reinvestment Act, regulatory agen- Wallace, John M 143 cies' statement 141 Staff studies (See Staff studies) Consumer installment loans, proposed uniform Statements to Congress (See Statements to Conpolicy for classifying 322 gress) Federal Bank Commission, statement on Supervision and regulation (See Bank supervicreation 236 sion and regulation) Federal Financial Institutions Examination Tours of Board building 482 Council 634, 640, 903, 970 Bolton, Robert H., appointed director, New Or- Federal Reserve Compliance Handbook, leans Branch 288 supplements 835, 971 Boltz, Paul W., staff study 393 Foreign banks (See Foreign banks) Bond, Lewis H., elected Class A director, Interlocking bank relationships 143,248, Dallas 294 635, 639, 654 Botts, Guy W., elected Class A director, Privacy rights of customers of financial Atlanta 286 institutions 143, 224, 248, 832, 849 Brady, Thomas F., article 797 Regulatory changes to help small savers, Branch banks adoption 477 Federal Reserve Regulatory Reform Act of 1979 and Board's Directors (See Directors) regulatory improvement program, statement.. 538 Vice Presidents in charge, list A73 Reporting and recordkeeping requirements im- Foreign (See Foreign banks) posed on public, statement on bill 895 Foreign branches of member banks Securities 45, 638, 969, 979 Assets and liabilities from year-end reports Banking data, revised 408 of condition 834 Banking structure, staff study on changes 221 Reserve requirements, amendments to Regu- Banking system, U.S., statement on condition .. 463 lations D and M 249 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 65 A 85 Pages Pages Britton, Raymond L., appointed director, Houston Consumer affairs—Continued Branch 295 Consumer Advisory Council 47, 143 Brundy, James M., articles 97, 785 482, 833, 966, All Budget Equal Credit Opportunity (See Equal Credit Op- Federal, statements 225, 738, 962 portunity Act) Federal Reserve System, for 1979, state- Privacy rights of customers of financial institument 122 tions 143, 224, 248, 832, 849 Burke, Vincent C., Jr., elected Class A director, Publications (See Publications and releases) Richmond 285 Transfers of funds (See Transfers of funds) Burwell, John R., appointed director, Buffalo Truth in Lending (See Truth in Lending Act) Branch 283 Credit (See also Loans) Brokers and dealers, proposed amendments to CAFFEY, Guy H., Jr., appointed director, Bir- Regulation T 639 640 mingham Branch 287 Commercial bank, and bank nondeposit funds, Campbell, Bruce E., Jr., appointed director, article and announcement on revised series Memphis Branch 291 and new statistical releases 707, 835 Campbell, Tim S., staff study 393 Consumer (See Consumer affairs) Capacity utilization, staff study on measurement.. 532 Controls, statement 467 Capacity utilization rates, revision 606 Federal credit programs, statements 239, 962 Chapman, Hugh M., appointed director, Charlotte Letters of, standby, article on survey 716 Branch 286 Reserve Banks, changes in interest rates.. 633,744, Check clearing and collection (See Transfers of 832 funds) Scoring system practices, proposed application Cheever, Charles E., Jr., appointed director, San of Regulation B 406 Antonio Branch 295 Stocks (See Stock market) Civil rights and consumer affairs compliance pro- Credit unions 478, 927 gram for member banks, adoption 138 Clearinghouses, automated 479, 525 Cold well, Philip E. DAVID, Ralph E., appointed director, Houston Federal Reserve Act, statement on proposed Branch 295 amendments 312 de Leeuw, Frank, staff study 532 Federal Reserve System, statement on budget for Deacon, Robert H., elected Class A director, 1979 122 Philadelphia 284 Organization of Petroleum Exporting Countries Defense production loans 246, 250 (OPEC) investments in United States, state- Deposits ment 623 Interest rates (See Interest on deposits) Regulatory Reform Act of 1979 and Board's Reserve requirements (See Reserve requireregulatory improvement program, statement. 538 ments) Commercial banks (See also Member banks) Time and savings, at commercial banks, Bank loan contracting, staff study on innova- surveys 104, 387 tions 393 Directors Consumer installment loans, proposed uniform Federal Reserve Banks policy for classifying past due loans 322 Chairmen and Federal Reserve Agents 282, A73 Credit and bank nondeposit funds, article and Deputy Chairmen 282, A73 announcement on revised series and new sta- Legislation, statement on proposed amendtistical releases 707, 835 ment of Federal Reserve Act 312 Foreign banks (See Foreign banks) List 282 Insured, article on income in 1978 692 Federal Reserve branch banks Money market certificates, change in rules 247 Chairmen and Deputy Chairmen 282, A73 Security repurchase agreements with nonbank List 282 public, new data series 482 Discount rates at Federal Reserve Banks (See In- Time and savings deposits, surveys 104 terest rates) U.S. govt, securities, bank regulatory policy Dividends in 1978 statement 969 Federal Reserve Banks 45 Community Reinvestment Act Insured commercial banks 692 Regulation BB, amendment 344 Dollar coin, joint Federal Reserve-Treasury state- Regulatory agencies' statement 141 ment, demand for, and statement to Staff paper, issuance 247 Congress 549, 639, 821 Condition reports 640, 971 Dollar depreciation, staff study on impact on U.S. Consumer Advisory Council 43, 143, 482, 833 price level 305 966, All Drury, Doris M., appointed director, Denver Consumer affairs Branch 293 Community Reinvestment Act (See Community Duncan, James H., appointed director, Detroit Reinvestment Act) Branch 289 Compliance program for member banks, Dunlap, Tully F., appointed director, Miami adoption 138 Branch 288 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 Federal Reserve Bulletin • December 1979 Pages Pages EARNINGS and expenses in 1978 Federal Reserve Banks—Continued Condition reports 640, 971 New York 969-70, 971 Federal Reserve Banks 45 Presidents and Vice Presidents, list A73 Insured commercial banks, article 692 Transfers of funds (See Transfers of funds) Economy Federal Reserve System {See also Board of Gov- Condition, and conduct of monetary policy, ernors) statements 118, 127, 225, 888 Bank supervision and regulation (See Bank In 1978, article 1 supervision and regulation) Edge Act corporations (See Regulations, Budget for 1979, statement 122 Board of Governors: K) Dollar coin, joint statement, and demand Egan, Sister Eileen M., appointed director, Louis- for 549, 639 ville Branch 291 Foreign exchange operations of Treasury and Eisenbeis, Robert A., staff study 110 Federal Reserve, reports 201, 456, 720, 951 Electronic fund transfers (See Transfers of funds) Legislation (See Legislation) Ellis, Ruth W., appointed director, Nashville Management committee, creation 836 Branch 288 Map of districts and their branch Equal Credit Opportunity Act territories (Nov.) A82 Discrimination on basis of place of residence, Membership statement on proposed legislation 475 Admissions of slate banks ...50, 143, 248,323, Regulation B (See Regulations, Board of Gov- 408, 481, 551, 640, 745, 971 ernors) Decline, statements on, and proposals and Eurodollar market and possible need for legisla- view on Monetary Policy Improvement Act tion, statement 611 of 1979 113, 229 Examination procedures, revision 406 Reciprocal currency (swap) arrangement 744 Regulatory Reform Act of 1979 and Board's FARNSWORTH, Clyde H., Jr., appointed Deputy regulatory improvement program, statement. 538 Director of reorganized Division of Federal Re- Transfers of funds (See Transfers of funds) serve Bank Operations 835 Financial developments, quarterly reports to Con- Federal Advisory Council A72 gress 87, 377, 583, 879 Federal Financial Institutions Examination Fiscus, Robert W., appointed director, Pittsburgh Council 634, 640, 903, 970 Branch 285 Federal funds, proposed reserve requirements and Float, Federal Reserve, article on reducing 945 staff study 406, 533 Foreign acquisitions of U.S. banks, statement ... 627 Federal funds market, interpretation of Regulation Foreign banking and financing (See Regulations, Q 927 Board of Governors: K) Federal Open Market Committee Foreign banking and financing corporations, order Foreign exchange operations, reports 201,456, under Section 25(a) of Federal Reserve Act ... 350 720, 951 Foreign banks Legislation, statement on proposed amendment Bank holding companies, amendments to Reguof Federal Reserve Act 312 lation Y 924 Members and officers International activities of U.S. banks, Edge and List A72 Agreement corporations, and bank holding Staff changes 744 companies, amendments to Regulation K to Minutes, availability 137 conform with legislation and to update and Policy actions, record 51, 145, 325, 409,483, consolidate 248, 545, 552 641, 747, 837, 905, 972 640, 969, 1000 Reciprocal currency (swap) arrangement 744 International banking, statement on issues 617 Rules of Procedure, amendment 859 International banking facilities in New York Federal Reserve Act City, proposed 50, 322 Proposed amendments, statement 312 Interstate banking activities, proposed limitation Section 22(h), amendment to, and revision of to implement legislation 904 Regulation O to implement 50,245, Marginal reserve requirements, amendments to 422, 968,1001 Regulation D 915 Section 25(a), order under 350 Report of condition, proposed 640 Federal Reserve Banks Reporting forms to be used by foreign banking Branches (See Branch banks) organizations, proposed 904 Budget for 1979, statement 122 Reserves and interest on deposits, proposed Chairmen and Deputy Chairmen 282, A73 amendments to Regulations D and Q to im- Delegation by Board of certain authority to, pose 639 amendment of rules .. 64, 65, 139, 159, U.S. branches and agencies, statement of policy 429, 560, 852, 925 on supervision 634 Directors (See Directors) Foreign branches of member banks (See Branch Discount rates (See Interest rates) banks) Earnings and expenses in 1978 45 Foreign countries, new statistical table on U.S. Legislation, statement on proposed amendment banks' claims 481 of Federal Reserve Act 312 Foreign currency (swap) arrangement 744 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 65 A 87 Pages Pages Foreign exchange Interpretations Operations of Treasury and Federal Reserve, Bank service arrangements and Bank Service reports 201, 456, 720, 951 Corporation Act 322, 341 Transactions, survey 969 Equal Credit Opportunity, marital status inquir- Foreign lending by large U.S. banks, surveys ... 548 ies 860 Forest, Lawrence R., Jr., staff study 532 Federal funds market 927 Frankel, Allen B., article 299 Interest on time deposits, early withdrawal Fry, Edward R., article 707 penalty 63 Pooling of funds to obtain higher interest GARST, Mary, elected Class B director, rates 494 Chicago 289 Truth in Lending, certain open-end credit plans Gay, Robert S., article 447 secured by consumers' residence, revoca- Gustavel, Jack W., appointed director, Portland tion 833, 851 Branch 297 Investments of Organization of Petroleum Exporting Countries (OPEC) in United States, state- HAMILTON, Albert R., Director, Division of ment 623 Federal Reserve Bank Examinations and Budget, resignation 745 JACKSON, J. L., appointed Class C director, Hamilton, Earl G., article 525 Cleveland 284 Hauser, Richard P., elected Class B director, Jacobsen, Robert A., appointed Assistant Director Philadelphia 284 for Financial Institutions Supervision, Division Henderson, Robert P., appointed Class C director of Banking Supervision and Regulation 550 and Deputy Chairman, Boston 283 Joplin, Charles A., appointed director, El Paso Holmes, Alan R. Branch 295 Appointment as Adviser for Market Operations, Federal Open Market Committee 744 KEIR, Peter M., article 679 Reports 201, 456 Kenessey, Zoltan E., staff study 532 Hooper, Peter, staff study 305 Keuper, Jerome P., appointed director, Jackson- Hosley, Joan D., article 603 ville Branch 287 Housing (See Real estate) Key, Sydney J., article 785 Houts, Elden, appointed director, Cincinnati Kilpatrick, Robert D., elected Class B director, Branch 285 Boston 282 Humphrey, David B., article 97 Kudlinski, James R., appointed Director of reor- Hunt, Dennis W., elected Class B director, ganized Division of Federal Reserve Bank Op- Chicago 289 erations 835 Kwast, Myron L., article 97 INCOME, unreported, statement on IRS study 742 Income and expenses (See Earnings and expenses) LABOR market developments, article 447 Industrial production, Board releases 43, 112,222, Lefever, David M., articles 104, 387 307, 395, 459, 535, 610, 737, 817, 887, 957 Legislation Industrial production index, revision 603 Bank holding companies 139, 157, 890 Insured commercial banks 692 Bank Service Corporation Act, rescission of Interest on deposits (See alsoInterest rates) Regulation S 322, 341 Changes in Regulation Q (See Regulations, Community Reinvestment Act (See Community Board of Governors) Reinvestment Act) International banking facility in New York City, Council on Wage and Price Stability, proposed 50, 322 statement 133 Money market certificates, change in rules 247 Credit controls, statement 467 Rate ceilings and their effects on rate of return to Depository Institution Management Interlocks small savers, statements 308, 315, 403 Act 143, 248, 633, 639 Regulatory changes to help small savers, joint an- Depository Institutions Deregulation Act of nouncement 322, 477 1979, statement 541 Interest rates (See also Interest on deposits) Electronic fund transfers (See Transfers of Federal Reserve Banks, changes 633, 744, 832 funds) Monetary policy (See Monetary policy) Equal Credit Opportunity Act, proposed amend- Interlocking bank relationships under Clayton ment 473 Act 143,248,635,639, 654 Eurodollar market and possible need for legisla- International banking tion , statement 611 Current issues, statement 617 Federal Bank Commission, statement 236 Facilities in New York City, proposed 50, 322 Federal credit programs, statements on proposals Offshore financial centers, statement on role of for improving control over 239, 962 U.S. banks 396 Federal Reserve Act (See Federal Reserve Act) International economic issues confronting the Federal Reserve System United States, statement 470 Membership, statements on decline, and leg- International statistics, revision of tables 550 islative proposals and view on Monetary International transactions, U.S., in 1978, article. 299 Policy Improvement Act of 1979 .... 113, 229 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 Federal Reserve Bulletin • December 1979 Pages Pages Legislation—Continued Margin requirements Federal Reserve System—Continued Mutual fund shares, proposed amendment of Monetary policy, effective, statement on bills Regulation T 640 designed to assure capacity to conduct ... 822 Over-the-counter stocks, revisions of list 322, 834 Monetary policy reports to Congress ... 185, 591 Specialists and option market-makers, proposed Treasury Department, statement on extension amendment of Regulation T 639, 640 of authority for direct borrowing from 242 Mattingly, J. Virgil, appointed Assistant General Financial Institutions Regulatory and Interest Counsel 322 Rate Control Act of 1978, proposed regula- Member banks (See also National banks) tions to implement 248 Branches (See Branch banks) Full Employment and Balance Growth Act of Consumer affairs and civil rights compliance 1978, monetary policy report to Congress program, adoption 138 pursuant to 185 Federal Reserve management committee, cre- Interest on deposits, statements on rate ceil- ation, to set up standards for services to ... 836 ings 308, 315, 403 Interlocking bank relationships 143, 248,635, Interlocking bank relationships under Clayton 639, 654 Act and Depository Institution Management Loan programs, U.S. government guaranteed, Interlocks Act 143, 248, 635, 639, 654 uniform supervisory policy for financial insti- International Banking Act, implementation tutions 970 Article 785 Loans to executive officers and certain others, Regulation K, changes 248, 545, 904 amendments to, and revision of, Regulation Member bank loans to executive officers and O 50, 245, 422, 968,1001 certain others, amendments to, and revision Reserve requirements (See Regulations, of, Regulation O to implement Federal Board of Governors: D and M) Act 50, 245, 422. 968,1001 Securities (See Securities) Negotiable order of withdrawal (NOW) ac- State member banks (See State member banks) counts, statement 460 Supervision and regulation (See Bank supervi- Privacy rights of customers of financial institu- sion and regulation) tions 143, 224, 248, 639, 832, 849 Transfers of funds (See Transfers of funds) Regulatory Reform Act of 1979 and Board's Mergers (See Bank Merger Act) regulatory improvement program, statement. 538 Miller, G. William Reporting and recordkeeping requirements im- Economy, condition, and conduct of monetary posed on public, statement on bill 895 policy, statements 118, 127, 225 State member banks, change in control, policy Federal Reserve System membership, decline, statement and amendments to Regulation Y statements on legislative proposals and view to implement 139, 157 on Monetary Policy Improvement Act of Truth in Lending (See Truth in Lending Act) 1979 113, 229 Lewis, Floyd W., elected Class B director, International economic issues confronting the Atlanta 287 United States, statement 470 Litigation, pending cases involving Board of Gov- Resignation as Member and Chairman 632 ernors 84, 171, 280, 444, 523, 578 Miller, Paul G., elected Class B director, Rich- 675, 783, 878, 943,1019 mond 285 Lloyd-Davies, Peter R., articles 716, 945 Monetary aggregates, article on proposals for re- Loans (See also Credit) defining 13 Bank lending practices, 1977-79, article on Monetary policy changes 797 Actions taken to curb inflation; and Bank loan contracting, staff study on innova- statements on background, impact on tions 393 small business, and international Consumer installment, proposed uniform policy implications 830, 888, 893, 898 for classifying past due loans 322 Conduct, and condition of economy, state- Defense production 246, 250 ments 118, 127, 225, 888 Foreign lending by large U.S. banks, Effective, statement on bills designed to assure surveys 548 capacity of Federal Reserve to conduct 822 Member banks (See Member banks) Goals and conduct , statement 958 Mortgages (See Real estate) Reports to Congress 185, 591 Stocks (See Stock market) United States, article on role of operating Lowrey, Barbara R., staff study 305 guides 679 Lueder, Robert G., appointed director, Omaha Money stock, revision 142 Branch 294 Mortgages (See Real estate) Mullaney, Sister Michael Leo, appointed director, Cincinnati Branch 285 McDONOUGH, William N., temporary appoint- Mulrenin, Edward T., temporary assignment as ment as Assistant Secretary of Board 745 Assistant Secretary of Board, and subsequent Maffett, Everett L., elected Class A director, appointment as Assistant Staff Director, Office Cleveland 284 of Staff Director for Management 143, 745 Mannion, Robert E., appointed E>eputy General Mutual funds, proposed amendment to Regulation Counsel 745 T 640 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 65 A 89 Pages Pages NATIONAL banks (See also Member banks) Price level, staff study 305 International banking operations, revision of Production (See Industrial production) Regulations K and M 248, 545, 552, 640 Publications and releases in 1979 Loans to executive officers and certain others, Banking data 408, 971 amendments to, and revision of, Regulation Commercial bank credit and bank nondeposit O ...50, 245, 422, 968,1001 funds, article and announcement on revised Reserve requirements for foreign branches, series and new statistical releases 707, 835 amendments to Regulations D and M 249 Condition reports 640, 971 Securities (See Securities) "Consumer Handbook to Credit Protection Supervision and regulation (See Bank supervi- Laws," pamphlet 50 sion and regulation) Federal Reserve Compliance Handbook, sup- Negotiable order of withdrawal (NOW) accounts, plements 835, 971 statements 460, 541 Federal Reserve Readings on Inflation, booklet Noble, Samuel R., appointed director, Oklahoma compiled by Federal Reserve Bank of New City Branch 293 York 971 Norsworthy, Jase O., appointed director, Helena Federal Reserve System, series of educational Branch 292 pamphlets 745 List of available publications A74 1977 Consumer Credit Survey 50 O'CONNELL, Thomas J., Counsel to Chairman, Over-the-counter margin stock list, revideath 143 sions 322, 834 Open market operations (See Federal Open Market Security repurchase agreements of commercial Committee) banks with nonbank public, new data series ... 482 Opper, Barbara Negri, article 692 Staff studies, mailing list 745 Organization of Petroleum Exporting Countries (OPEC), statement on investments in United RADDOCK, Richard D., staff studies 532, 606 States 623 Raiken, Allen L., Associate General Counsel, res- Over-the-counter margin securities, list, reviignation 550 sions 322, 834 Rayburn, Wendell G., appointed director, Louisville Branch 291 PARDEE, Scott E. Real estate Appointment as Manager for Foreign Opera- GNMA-guaranteed passthrough security, staff tions, System Open Market Account 744 study 955 Reports 201, 456, 720, 951 Mortgage and housing markets, article 173 Parker, Gordon E., appointed director, Little Rock U.S. government guaranteed loan programs, Branch 290 uniform supervisory policy for financial insti- Partee, J. Charles tutions 970 Bank holding companies, statement on proposed Record of policy actions of Federal Open Market bills 890 Committee (See Federal Open Market Commit- Bank holding companies and other lenders, tee) statement on tie-ins between granting of credit Regulations, Board of Governors (See also Rules) and sale of insurance 536 B, Equal Credit Opportunity Banking system, U.S., statement on condi- Credit-scoring system practices, proposed aption 463 plication 406 Deposit rate ceilings and effects on rate of return Creditor, amendment to clarify definito small savers, statements 308, 315, 403 tion 406, 422 Depository Institutions Deregulation Act of Marital status inquiries, interpretation 860 1979, statement 541 BB, Community Reinvestment Federal Bank Commission, statement 236 Military personnel, amendment 344 Negotiable order of withdrawal (NOW) ac- D, Reserves of Member Banks counts, statement 460 Foreign banks, proposed amendment to im- Reporting and recordkeeping requirements im- pose 639 posed on public, statement on bill 895 Foreign branches of U.S. banks, amend- Treasury Department, statement on extension of ment 249 authority for direct borrowing from Federal Managed liabilities of member banks, Edge Reserve System 242 corporations, and U.S. agencies and Payments mechanism (See Transfers of funds) branches of foreign banks, marginal re- Phillips, William G., appointed Class C director, quirements on increases, amendments ... 915 Minneapolis 292 E, Electronic Fund Transfers Pierce, Benjamin P., appointed director, Memphis Amendments, proposed and final..322, 480,552, Branch 291 633, 759, 918 Pine, Shirley J., appointed director, Little Rock Issuance and additions 49, 321, 336,406, Branch 290 480, 833, 918 Policy actions, Federal Open Market Committee F, Securities of Member State Banks (See Federal Open Market Committee) Rule changes, amendments to conform with Ponder, Henry, appointed director, Charlotte Securities and Exchange Com- Branch 286 mission 968, 979 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 Federal Reserve Bulletin • December 1979 Pages Pages Regulations, Board of Governors—Continued Regulations, Board of Governors—Continued H, Membership of State Banking Institutions in V, Loan Guarantees for Defense Production the Federal Reserve System Simplification and consolidation, revi- Certain securities transactions, amendments sion 246, 250 regarding recordkeeping and confirma- Y, Bank Holding Companies tion 651 Control, change, policy statement and J, Collection of Checks and Other Items and amendments 139, 157 Transfer of Funds Foreign banks, amendments 924,1004 Checklike payment instruments drawn on Foreign investments, revision and transfer of savings accounts, proposed changes 406 provisions to Regulation K 248, 545, 552 Electronic fund transfers made through Fed- Nonbank activities and procedures eral Reserve automated clearinghouses, Publication of intention to engage in, proposed new section 967 amendments 46, 64 K, International Banking Operations Sale of general insurance in certain com- Interstate banking activities of foreign banks munities, revision 903, 924 in United States, proposed limitation to Sale of money orders, travelers checks, and implement legislation 904 U.S. savings bonds, amendment . 246, 249 U.S. banks, Edge and Agreement corpora- Z, Truth in Lending tions, and bank holding companies, Annual percentage rate on credit, proposals amendments to conform with legislation, on disclosure 50, 639 and revision to update and consolidate in- Certain open-end credit plans secured by conternational activities 248, 545, 552 sumers' residences, proposed suspension of 640, 969, 1000 recent amendment, and revocation of L, Interlocking Bank Relationships Under the amendment and related interpretations 143, Clayton Act 833, 851 Proposed amendments to carry out new legis- Guidelines, uniform for enforcement, adoplation and principal features of supervisory tion by five federal agencies 46 agencies' regulations under law 143,248, Surcharges, amendment to extend 635, 639 prohibition 344 Revision 654 Repurchase agreements M, Foreign Activities of National Banks Data series, new 482 International banking operations, revision and Interest rate ceilings, amendment of Regulation transfer of provisions to Re gulation K ... 248, Q 633 545, 552, 640 Reserve requirements, proposed 406 Reserve requirements for foreign branches, Staff studies 533 amendment 249 Reserve requirements O, Loans to Executive Officers, Directors, and International banking facility 50 Principal Shareholders of Member Banks Member banks, changes (See Regulations, Board (formerly Loans to Executive Officers of of Governors: D and M) Member Banks) Restructuring, proposed 406 Restraints and simplification, amendments and Revisions revision 50, 245, 422, 968, 1001 Banking data 408 Q, Interest on Deposits Commercial bank credit and bank nondeposit Compounding, on certain time deposits of funds, article and announcement on revised $10,000 or more, amendment 341 series and new statistical releases 707, 835 Early withdrawal of time deposits, amend- Industrial production index 603 ments and interpretation ...63, 493, 633, 657 International statistics 550 Federal funds market, interpretation 927 Money stock 142 Foreign banks, proposed amendment to im- Reynolds, John E., Counselor, Division of Internapose ceilings 639 tional Finance, death 143 Maximum rates on time and savings deposits, Rhoades, Stephen A., staff studies 221, 608 amendments 341, 493, 633-34, 657 Rice, Emmett J. Pooling of funds to obtain higher interest Advertising practices of banks, statement 818 rates, interpretation 494 Appointment as Member, Board of Gover- Repurchase agreements, amendment 633 nors 545 S, Reimbursement to Financial Institutions for Robb, Walter J., Sr., elected Class B director, Cleve- Assembling or Providing Financial Records land 284 Adoption, proposed and final 639, 832, 849 Roepstorff, Alfred W., appointed director, Miami Rescission of former Regulation S (Bank Branch 288 Service Arrangements), and adoption of modified interpretations to conform to leg- Rulemaking procedures, expanded, statement on islation 322, 341 policy regarding 137 T, Credit by Brokers and Dealers Rules, Board of Governors (See also Regulations) Mutual fund shares, proposed amendment 640 Delegation of authority, amendments 64,65, 139, Specialists and option market-makers, pro- 157, 429, 560, 852, 925,1004 posed amendment 639, 640 Foreign gifts and decorations, adoption 925 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 65 A 91 Pages Pages Rules, Board of Governors—Continued Statements to Congress—Continued Hearings, revision 853 Bank holding companies, proposed bills 890 Organization, amendments 65, 345 Bank holding companies and other lenders, tie- Procedure, amendments 925 ins between granting of credit and sale of Public observation of meetings, amendments.. 252 insurance 536 Rutz, Roger D., staff study 608 Banking system, U.S., condition 463 Ryrie, George M., elected Class A director, St. Budget resolutions, congressional, for fiscal year Louis 290 1980 225, 738 Council on Wage and Price Stability 133 SAWYER, Granville M., appointed director, Credit controls 467 Houston Branch 295 Deposit rate ceilings and effects on rate of return Schultz, Frederick H. to small savers 308, 315, 403 Appointment as Member and designation as Vice Depository Institutions Deregulation Act of Chairman, Board of Governors 632 1979 541 Monetary policy actions to curb inflation, state- Dollar coin 821 ment on impact on small business 893 Economy, condition, and conduct of monetary Schwartz, Gilbert T., appointed Assistant General policy 118, 127 Counsel 322 Electronic Fund Transfer (EFT) Act 223, 399 Schweitzer, Paul R., staff study 110 Equal Credit Opportunity Act 475 Scothorn, Donald L., elected Class A director, Eurodollar market and possible need for legisla- Minneapolis 292 tion 611 Securities (See specific types) Federal Bank Commission, creation 236 Municipal securities, statement by three bank Federal credit programs, proposals for improvregulatory agencies on default 45 ing control over 239, 962 State member banks, amendments to Regulation Federal Reserve Act, proposed amendments .. 312 F 968, 979 Federal Reserve System Stocks (See Stock market) Decline in membership, and proposals and Transactions, uniform standards for banks 638 view on Monetary Policy Improvement Act Trust assets, uniform survey by bank regulatory of 1979 113,229 agencies 970 Budget for 1979 122 U.S. government, bank regulatory policy state- Financial developments, quarterly reports to ment 969 Congress Seiders, David F., article and staff study .. 173, 955 Q4, 1978 87 Simpson, Thomas D., article and staff study.. 13, 533 Ql, Q2, and Q3, 1979 377, 583, 879 Staff studies Foreign acquisitions of U.S. banks 627 Mailing list 745 Income, unreported, discussion on recent study Summaries by Internal Revenue Service 742 Bank holding companies, impact on competi- International banking, current issues 617 tion and performance in banking mar- International economic issues confronting kets 608 United States 470 Bank holding companies and other lenders, Monetary policy tie-ins between granting of credit and sale Bills designed to assure capacity of Federal of insurance 110 Reserve to conduct 822 Bank loan contracting, innovations 393 Goals and conduct 958 Banks, geographic expansion, and changes in Monetary policy actions to curb inflation, backbanking structure 221 ground, and impact on small business, Capacity utilization, measurement 532 and international implications 888, 893, 898 Dollar depreciation, impact on U.S. price Monetary policy reports 185, 591 level 305 Negotiable order of withdrawal (NOW) ac- Federal funds and repurchase counts 460 agreements 533 Offshore financial centers, role of U.S. GNMA-guaranteed passthrough banks 396 security 955 Organization of Petroleum Exporting Countries State member banks (OPEC), investments in United States 623 Bank Service Corporation Act, rescission of Regulatory Reform Act of 1979 and Board's former Regulation S and adoption of modified regulatory improvement program 538 interpretations 322, 341 Reporting and recordkeeping requirements im- Membership in Federal Reserve System, admis- posed on public, bill 895 sions 50, 153, 248, 323, 481, 551 Right to Financial Privacy Act of 1978 224 640, 745, 971 Treasury Department, extension of authority for Mergers (See Bank Merger Act) direct borrowing from Federal Reserve Sys- Securities (See Securities) tem 242 Supervision and regulation (See Bank supervi- Truth in Lending Act, simplification 130 sion and regulation) Sternlight, Peter D., appointed Manager for Do- Statements to Congress (includes reports) mestic Operations, System Open Market Ac- Advertising practices of banks 818 count 744 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 Federal Reserve Bulletin • December 1979 Pages Pages Stock market Treasury Department—Continued Credit by brokers and dealers, proposed amend- Foreign exchange operations of Treasury and ments to Regulation T 639, 640 Federal Reserve, reports ....201, 456, 720, 951 Over-the-counter margin stock list, revi- Trust assets, uniform survey by bank regulatory sions 322, 834 agencies 970 Securities transactions, uniform standards for Truth in Lending Act banks 638 Enforcement guidelines, adoption by five federal Supervision and regulation (See Bank supervision agencies and proposed revisions 46, 904 and regulation) Regulation Z (See Regulations, Board of Gov- Surveys ernors) Foreign exchange transactions 969 Simplification, statement 130 Foreign lending by large U.S. banks 548 Letters of credit, standby 716 U.S. GOVERNMENT guaranteed loan programs, Time and savings deposits at commercial uniform policy for supervisory institutions 970 banks 104, 387 U.S. government securities, bank regulatory policy Trust assets, uniform survey by bank regulatory statement 969 agencies 970 U.S. international transactions in 1978, article .. 299 TABLES (for index to tables published monthly, VANDERGRIFT, Roy W., appointed director, see guide at top of p. A81) Miami Branch 288 Foreign countries, new statistical table on U.S. Volcker, Paul A. banks' claims 481 Appointment as Member and designation as Revisions (See Revisions) Chairman, Board of Governors 631 Tanaka, Togo W., appointed director, Los Angeles Budget resolutions, congressional, for fiscal year Branch 296 1980, statement 738 Taylor, William, appointed Associate Director, Monetary policy, statements on bills designed Division of Banking Supervision and Regula- to assure capacity of Federal Reserve to contion 408 duct and on goals and conduct 822, 958 Teeters, Nancy H. Monetary policy actions to curb inflation, state- Credit controls, statement 467 ment on background 888 Electronic Fund Transfer (EFT) Act, statements 223, 399 WALKER, Walter L., appointed director, Mem- Equal Credit Opportunity Act, statement 475 phis Branch 291 Federal credit programs, statements on proposals Wallace, John M., return to Federal Reserve Bank for improving control over 239, 962 of Atlanta 143 Income, unreported, statement on recent study Wallace, William H., statement on dollar coin.. 821 by Internal Revenue Service 742 Wallich, Henry C. Right to Financial Privacy Act of 1978, state- Article 679 ment 224 Council on Wage and Price Stability, statement Truth in Lending Act, statement on simplifica- on extension 133 tion 130 Eurodollar market and possible need for legisla- Teplin, Albert M., article 1 tion, statement 611 Thompson, Horatio C., appointed director, New Foreign acquisitions of U.S. banks, state- Orleans Branch 289 ment 627 Transfers of funds International banking, statement on current Automated clearinghouse (ACH) services, im- issues 617 provements adopted, and article 479, 525 Monetary policy actions to curb inflation, state- Check processing at Federal Reserve offices .. 97 ment on international implications 893 Disbursement, remote, Board statement of pol- Offshore financial centers, statement on role of icy concerning, and action to discourage U.S. banks 396 abuse 140 Warfield, Robert E., Jr., appointed director, Jack- Electronic fund transfers sonville Branch 287 Regulations E and J (See Regulations, Board Wessel, George L., appointed director, Buffalo of Governors) Branch 283 Settlement of large-denomination business White, Fred A., elected Class A director, Boschecks, pilot test 478 ton 282 Statements : 223, 399 Willie, Louis J., appointed director, Birmingham Float, Federal Reserve, article on reducing ... 945 Branch 287 Negotiable order of withdrawal (NOW) ac- Wolkowitz, Benjamin, article 945 counts, statement 460 Woods, John D., elected Class A director, Kansas Treasury Department City 292 Direct borrowing from Federal Reserve, statement on extension of authority for 242 YOUNG, Robert A., elected Class A director, San Dollar coin, joint statement 549 Francisco 296 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories iilSl e"t/e r— 1—\ { \ © Helena \ (\ Minneapolis^ ^ i^'lwHKp*^© (J21 ( /„ . • "orne*^W K i J F ^^ ® / Denver — at Oklahoma City,L 4»geles Birminghart®^^ / Dallas® I® El Paso HoustonI ms V Pan Antonio V 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