Federal Reserve Bulletin, 1980-04

A pril 1980 FEDERAL RESERVE BULLETIN U.S. International Transactions in 1979 Electronic Fund Transfers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN (USPS 351-150). Controlled Circulation Post­ age Paid at Richmond, Virginia. POSTMASTER: Send address changes to Pub­ lications Services, MP-510, 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 Publications 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

V olume 66 □ N umber 4 □ A pril 1980 FEDERAL RESERVE BULLETIN Board of Governors of the Federal Reserve System Washington, D.C. Publications Com m ittee Joseph R. Coyne, Chairman □ Stephen H. Axilrod □ John M. Denkler Janet O. Hart □ James L. Kichline □ Neal L. Petersen □ Edwin M. Truman Michael J. Prell, Staff Director The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack R. Rowe. Editorial support is furnished by the Economic Editing Unit headed by Mendelle T. Berenson. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 283 U.S. International Transactions on the need for an increase in IMF quotas, in 1979: A nother Round o f before the Subcommittee on International Oil Price Increases Trade, Investment and Monetary Policy of the House Committee on Banking, Finance In spite of a dramatic rise in oil prices last and Urban Affairs, April 1, 1980. year, the U.S. trade deficit decreased slight­ ly from 1978 and the current-account deficit 307 Paul A. Volcker, Chairman of the Board of was essentially eliminated. Governors, testifies on the proposed in­ crease in the limit on the public debt and 290 Electronic Fund Transfers: New recommends that setting the debt ceiling be Protections for Consumers, New included, by law, in the process of approv­ D uties for Financial Institutions ing the budget, before the Subcommittee on Taxation and Debt Management of the Sen­ New rules in the Board’s Regulation E pro­ ate Committee on Finance, April 2, 1980. vide important rights and safeguards to consumers using banking and payment 309 Frederick H. Schultz, Vice Chairman of the services that employ computer and elec­ Board of Governors, discusses some of the tronic technology instead of paper in­ provisions of the special program of credit struments such as checks. restraint announced by the Board on March 14 and states that this program is intended 297 Industrial Production to reduce inflationary expectations in order to reduce interest rates over the longer Output decreased about 0.8 percent in term, before the Subcommittee on Access March. to Equity Capital and Business Opportuni­ ties of the House Committee on Small Busi­ 299 Statements to Congress ness, April 2, 1980. Henry C. Wallich, Member of the Board of 311 Governor Wallich discusses the views of Governors, testifies in support of proposed the Board on proposed legislation to permit legislation to increase the U.S. quota in the bank investment in trading companies: International Monetary Fund (IMF) in or­ the Board has several concerns about a der to strengthen the Fund’s influence in breaching of the traditional separation of promoting, over time, balance of payments banking and commerce, which would be adjustments by those members that are fac­ permitted by this legislation, before the ing increased external financial diffi­ Subcommittee on International Finance of culties—assistance that would be in the the Senate Committee on Banking, Hous­ best interests both of those countries and of ing, and Urban Affairs, April 3, 1980. the United States, before the Senate Com­ mittee on Foreign Relations, March 17, 314 Announcements 1980. Announcement of monetary and credit ac­ 302 Governor Wallich discusses the issue of re­ tions to help curb inflationary pressures. cycling surpluses of the Organization of Pe­ (See Legal Developments.) troleum Exporting Countries along with the relationship of this issue to bank lending to Amendment of the Board’s regulations to developing countries and again elaborates implement the International Banking Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Issuance of statement about the Depositary M-1B, provided that in the period until the Institutions Deregulation and Monetary next meeting the weekly average federal Control Act of 1980. funds rate remained within a range of 11V2 to 15V2 percent. Consistent with this short- Imposition of interest rate limitations on run policy, in the Committee’s view, the certain debt instruments issued by bank newly defined M-2 should grow at an annu­ holding companies. al rate of about 6V2 percent over the first Issuance of policy statement for assessing quarter. financial factors in the formation of small On February 22, the Committee modified one-bank holding companies pursuant to the domestic policy directive adopted at the Bank Holding Company Act. this meeting to raise the upper limit of the range for the federal funds rate to I6V2 per­ Change in data on federal funds and repur­ cent. Subsequently, in a telephone confer­ chase agreements. ence held in the afternoon of March 7, the Revision of guidelines for banks that en­ Committee voted to raise the upper limit of gage in futures, forward, and standby con­ the intermeeting range for the federal funds tracts on U.S. government and agency rate to 18 percent, to provide greater opera­ securities. tional flexibility in meeting reserve objec­ tives. Publication of the Board’s Annual Report for 1979. 333 Legal Developments Changes in Board staff. Credit restraint program; bank holding New money stock seasonal factors. company and bank merger orders; and pending cases. Meeting of Consumer Advisory Council. Revised OTC stock list. A1 Financial and Business Statistics Admission of three state banks to member­ A3 Domestic Financial Statistics ship in the Federal Reserve System. A46 Domestic Nonfinancial Statistics A54 International Statistics 325 Record of Policy Actions of the Federal Open Market Committee A69 Guide to Tabular Presentation At the meeting on February 4-5, 1980, the AND S TA TISTICAL RELEASES Committee adopted the following ranges for growth of the monetary aggregates over A70 Board of Governors and Staff the period from the fourth quarter of 1979 to the fourth quarter of 1980: M-l A, Vh to A72 Federal Open Market Committee 6 percent; M-1B, 4 to 6V2 percent; M-2, 6 to AND STAFF; ADVISOR YCOUNCILS 9 percent; and M-3, 6V2 to 9xh percent. The associated range for growth of commercial A73 Federal Reserve Banks, Branches, bank credit was 6 to 9 percent. and Offices For the near term, the Committee agreed that open market operations in the period A74 Federal Reserve Board until the next meeting should be directed Publications toward expansion of reserve aggregates consistent with growth over the first quar­ A76 Index to Statistical Tables ter of 1980 at an annual rate of about 4V2 percent for M-l A and about 5 percent for A78 Map of Federal Reser ve S ystem Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1979 Another Round of Oil Price Increases Laurence R. Jacobson of the Board's Division of although the inflow was partially reversed in the International Finance prepared this article. fourth quarter following the imposition by the Board of Governors of reserve requirements on In spite of a dramatic rise in oil prices during increases in managed liabilities. 1979, the U.S. trade deficit decreased slightly Foreign official asset holdings in the United from 1978 and the current-account deficit was es­ States declined more than $15 billion in 1979, sentially eliminated. An increase in the volume compared with an increase of $34 billion in 1978. and prices of U.S. exports more than offset the A slight rise in dollar holdings by countries of the increase in the value of imports, which mainly Organization for Economic Cooperation and De­ reflected rising import prices with volumes up velopment (OECD), other than Japan, was more only slightly. A large increase in direct invest­ than offset by Japanese dollar sales in support of ment receipts, an important element of the the yen. U.S. official reserve assets changed only nontrade current account, resulted from rising slightly during the year, as net sales of dollars by profits by U.S. oil and manufacturing companies the Federal Reserve and the Treasury in the first operating in foreign countries. However, the half of 1979 were almost offset by purchases to trade deficit is likely to deteriorate in 1980 as the support the dollar during the second half of the full impact of oil price increases affects U.S. year. trade accounts. Slow economic growth in the United States relative to other industrial countries (chart 1) ac­ 1. Changes in real GNP in major countries counted for some of the increase in export vol­ Percent ume relative to import volume in 1979. The priceadjusted weighted-average foreign exchange value of the dollar fluctuated within a relatively narrow band during 1979 (chart 2). However, lagged adjustment to the decline of the dollar since 1976, and especially since 1977, exerted a United States positive effect on exports in 1979, particularly exports of machinery and industrial supplies. In the second half of the year both the price and the volume of agricultural exports were raised due to drought in Eastern Europe and the Soviet Union. Along with the improvement in the current ac­ count in 1979 compared with 1978, recorded net private capital outflows were greatly reduced and unrecorded transactions showed a much larger net inflow. The major features of the change in private capital were the net shift of $23 billion in bank-reported capital and an increase in net U.S. direct investment outflows of $7 billion. U.S. bank borrowing from branch offices in foreign Changes are from previous quarter, seasonally adjusted at annual countries resulted in a substantial capital inflow, rates. “Foreign” is the weighted average of 10 countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 Federal Reserve Bulletin □ April 1980 2. Average exchange value of the U.S. dollar Unlike the 1973-74 oil price hikes, which were March 1973=100 a result of concerted actions by the Organization of Petroleum Exporting Countries (OPEC) to set a high price even though available supply ex­ ceeded current demand, the establishment of world oil prices in 1979 occurred in an environ­ ment of constrained and unstable supply. In this environment a wide differential between spot market prices and contract prices emerged; there was a large increase in the volume of sales be­ tween governments and state-owned companies with an accompanying decrease of sales through the major multinational oil companies; and sig­ nificant price differentials were established among OPEC producers, even after adjustment for quality differences. “Price-adjusted dollar” is “weighted-average dollar” multiplied by relative consumer prices (U.S. divided by foreign consumer prices). 3. Import price of petroleum and products World Oil Market Developments and U.S. Oil Imports in 1979 Dollars per barrel U.S. payments for oil imports were greatly en­ larged by the rise in world oil prices during 1979 (chart 3). After the sharp increases of 1973-74, the price of oil rose only $2.30 per barrel, or 21 percent, between 1974 and 1978 (table 1) and ac­ tually fell relative to the aggregate price level. In contrast, the import price jumped from $13.36 per barrel to $25.00 per barrel between Decem­ ber 1978 and December 1979. While the volume of oil imports in 1979 was close to the 1978 rate, the total value of oil imports increased 42 percent from $42 billion in 1978 to $60 billion in 1979, and increased 75 percent between the fourth quarter Quarterly averages derived from monthly free-alongside-ship of 1978 and the fourth quarter of 1979. (f.a.s.) data from the U.S. Department of Commerce. 1. Imports of petroleum and products1 A major element in these developments was International accounts basis the almost total cessation of Iranian oil exports in Quantity2 Price2 Value early 1979. During the remainder of the year, Year (millions of (dollars (billions of barrels per day) per barrel) dollars) Iranian production was 2 million barrels per day lower than its previous peak. The cutback in 1970 ...................... 3.75 2.16 2.9 Iranian production is insufficient in itself to ex­ 1971 ...................... 4.14 2.43 3.6 1972 ...................... 5.00 2.57 4.7 plain the almost doubling of oil prices during the 1973 ...................... 6.83 3.33 8.4 1974 ...................... 6.61 10.98 26.6 year, because increased production by other 1975 ...................... 6.50 11.45 27.0 OPEC members and non-OPEC suppliers more 1976 ...................... 7.81 12.14 34.6 than compensated for the shortfall (table 2). 1977 ...................... 9.30 13.29 45.0 1978 ...................... 8.74 13.28 42.3 However, the growing fear by consumer nations 1979 ...................... 8.81 18.67 60.0 of future supply cutbacks and perceived supply 1. Includes imports into the U.S. Virgin Islands. shortages led to a scramble for purchases of 2. Annual averages. Source. U.S. Department of Commerce. crude oil to supplement national strategic stock- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1979 285 2. Free world crude oil production, by country was $10 or more above the official price during Millions of barrels per day most of the year (chart 4). The differential between official and spot Area and country 1973 1976 1977 1978 19791 prices apparently resulted from the conception Free world............................... 48.43 47.66 49.31 49.28 51.31 that official prices set at the spot price level could Non-OPEC producers ....... 17.12 16.49 17.55 18.82 19.99 OPEC.................................. 31.31 31.17 31.76 30.46 31.32 not be sustained in the long run, particularly if Iran .................................. 5.90 5.93 5.71 5.29 3.04 Iraq .................................. 2.02 2.42 2.36 2.57 3.41 Iranian production recovered to its previous high Kuwait2 ........................... 3.08 2.19 2.04 2.21 2.64 Libya ............................... 2.21 1.98 2.11 2.03 2.11 level. However, official prices climbed rapidly Nigeria ............................ 2.06 2.07 2.09 1.90 2.31 during the year, and retroactive increases also Saudi Arabia2 ................ 7.69 8.77 9.43 8.56 9.80 Venezuela ....................... 3.46 2.37 2.32 2.25 2.45 were imposed to recoup a portion of the profits Other ............................... 4.91 5.45 5.73 5.69 5.58 collected by contract purchasers through resale 1. Data for 1979 are preliminary. of crude oil and products at prices that reflected 2. Neutral Zone production assumed divided equally between conditions in the spot market. Additional official Saudi Arabia and Kuwait. Source. Central Intelligence Agency, International Energy Sta­ price increases in 1980, combined with a drop in tistical Review, March 12, 1980. spot market prices, have dramatically reduced the spot market premium for most producing piles, adding to demand pressures and allowing countries. price leapfrogging by individual producers. In­ The extent of the impact of spot market pur­ creases in production by OPEC were in part a chases on the average U.S. import price per bar­ response to rapidly escalating spot market and rel can be deduced from trade data. By com­ official prices. paring the actual unit value of oil imported by Before the end of 1978, sales in the spot mar­ the United States with OPEC contract prices, ket in Rotterdam and other locations consisted about 15 percent of U.S. imports were purchased mostly of refined products and accounted for less at spot market prices in the second half of 1979, than 3 percent of total world petroleum exports. The spot market existed primarily to balance small inventory shortages or surpluses of refin­ 4. Official and spot prices for oil ers. The minimal importance of this market be­ Dollars per barrel tween 1973 and 1978 was attributable to the ability and willingness of OPEC producers (par­ ticularly Saudi Arabia) to adjust production to meet demand at cartel prices. The spot market price for crude differed little from contract prices and was often at a small discount, except during the 1973-74 oil embargo. Although other OPEC countries did increase output as a result of the fall in Iranian produc­ tion, that increase was insufficient to meet de­ mand at established cartel prices. Unlike the 1974-78 period, when they let production adjust to meet demand, the oil countries set production limits. Saudi Arabia was unwilling to act as a swing producer and actually cut production sub­ stantially during the second quarter of 1979 be­ fore returning to a rate of 9.5 million barrels a day during the second half of the year. Since OPEC cannot set prices and production inde­ pendently, the trend during 1979 was to permit prices to float by selling at prices above the con­ Based on data reproduced by permission from Petroleum In­ telligence Weekly, copyrighted 1980 by Petroleum and Energy In­ tract level. The spot price of a barrel of crude telligence Weekly, Inc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

286 Federal Reserve Bulletin □ April 1980 resulting in an average cost of almost $2 per bar­ 3. U.S. merchandise trade, rel more than contract prices during the autumn international accounts basis of 1979. Thus, the impact of spot market pur­ Billions of dollars, seasonally adjusted annual rates1 chases on the U.S. import price was consid­ 1979 erable. Item 1978 1979 By midyear, OPEC producers were unable to Ql Q2 Q3 Q4 agree on a unified price structure. Official prices Exports .................... 142.1 182.1 165.7 171.6 188.9 202.1 Agricultural ............ 29.9 35.4 30.5 30.8 38.3 42.0 varied as much as 35 percent after adjustment for Nonagricultural ..... 112.2 146.7 135.3 140.7 150.6 160.0 quality differentials. Libya, Nigeria, Algeria, and Imports .................... 175.8 211.5 190.5 201.2 217.9 236.4 Iran formed a high-price tier. Saudi Arabia con­ Petroleum ............... 42.3 60.0 46.6 51.6 66.5 75.4 Nonpetroleum ........ 133.5 151.5 144.0 149.6 151.5 161.0 sistently offered the lowest price, although some of the differential was reduced through retroac­ Balance .................... -33.8 -29.5 -24.8 -29.6 -29.5 -34.4 tive price hikes. Kuwait, Iraq, Venezuela, and 1. Details may not add to totals because of rounding. others priced their oil about $2 a barrel above Source. U.S. Department of Commerce. that of Saudi Arabia. A nonunified price struc­ ture had existed only once before, during the first deficit year over year occurred because of the half of 1977, and Saudi Arabia was able to force a strength of exports, both agricultural and non­ compromise then by increasing production and agricultural. Increases in the value of imports putting pressure on countries with higher prices. (both oil and non-oil) were attributable almost Because it had established a production ceiling, entirely to price changes, whereas exports in­ Saudi Arabia was not able to play this role again creased significantly in volume as well as price. in 1979. Agricultural exports increased $5V2 billion to The year 1979 also was marked by an accelera­ $35V2 billion in 1979. Higher volume accounted tion of the trend by oil exporters to reduce sales for about one-quarter of the 18 percent increase through multinational oil companies and to in­ in value. Agricultural exports remained at about crease sales directly to governments or to state- the average 1978 level through the first half of controlled oil companies. Saudi Arabia reduced 1979. Both agricultural prices and the volume of the proportion of its sales to Aramco (a con­ exports jumped in the second half of the year, as sortium of four major U.S. oil companies), and the severity of the drought in Eastern Europe Iran virtually eliminated the major U.S. oil com­ and the Soviet Union placed pressure on world panies from contract purchases. Because the oil demand. In the fourth quarter of 1979 the value companies attempted to maintain deliveries to of agricultural exports reached $42 billion at an their home countries, there is little evidence that annual rate, 40 percent higher than during 1978. the United States was affected disproportionate­ Shipments of U.S. grain and soybeans to the So­ ly by the cutback of Iranian production. Coun­ viet Union were valued at a record $2.7 billion in tries, such as Japan, that had previously obtained 1979. The United States shipped 19.1 million much of their crude from the major oil companies metric tons of corn, wheat, and soybeans to the began to increase substantially their purchases U.S.S.R., up from 13.6 metric tons in 1978. through direct negotiations by state-regulated Nonagricultural exports in 1979 responded vig­ companies with OPEC governments and through orously to the strength of economic activity large acquisitions in the spot market. abroad and also reflected a lagged adjustment to the depreciation of the dollar between mid-1976 and 1979. The strength of exports in 1979 was Non-Oil Merchandise Trade widely spread across commodity groups and countries. Some of the largest increases were in Despite the large increase in the oil bill in 1979, machinery and industrial supplies, particularly the U.S. trade deficit narrowed slightly, from chemicals to Western Europe. Aircraft exports $33.8 billion in 1978 to $29.5 billion in 1979 (table also were strong. Significant increases were re­ 3). However, the deficit widened from the first to corded in exports to Japan, Canada, and non-oil the fourth quarter of 1979. The reduction in the developing countries, as well as to Western Eu- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1979 287 rope. Exports to OPEC members declined most­ 5. U.S. trade and current-account balances ly because of reduced sales to Iran; the U.S. Billions of dollars share of OPEC imports remained about 21 per­ cent. 20 A strong rise in gold exports (from $1 billion in 1978 to $5 billion in 1979) occurred as the Treas­ 10 ury continued auction sales throughout most of + the year, and the price of gold rose from $220 per 0 ounce in January to more than $400 per ounce in December. While gold imports also rose, net 10 gold transactions in 1979 yielded a $2 billion sur­ plus in contrast to the deficits of previous years. Non-oil imports expanded gradually over the 20 year. The increase was largely in terms of price. Volume is estimated to have risen about 2 per­ 30 cent, approximately the same as the real growth rate of GNP in the United States year over year. A broad range of commodities, particularly capi­ tal goods, cars and trucks, and foods contributed Balance on current account includes goods, services, and private to the overall expansion in imports in 1979. and government transfers. Annual data from the U.S. Department of Commerce. The U.S. trade balance with other developed countries shifted to a small surplus last year after an $11 billion deficit in 1978. The deficit with Rising profits of manufacturing companies oc­ non-OPEC developing countries was reduced al­ curred partly because economic activity abroad most $2 billion, and the surplus with Eastern Eu­ was strong and partly because current account­ rope was $2 billion larger. However, the U.S. ing procedures raised nominal profits by measur­ deficit with OPEC members increased sharply to ing depreciation charges and inventory costs at $30 billion, from $18 billion in 1978. historic costs and exchange rates. Profits were also affected substantially by a change in tax laws in the United Kingdom in the third quarter, Investment Income which eliminated certain accrued tax liabilities of and the Current Account U.S. companies to the United Kingdom. The rapid increase in direct investment pay­ Although the trade deficit has been quite large ments in 1979 reflected the continued expansion since 1977, net investment income has grown of foreign investments in the United States as substantially and has raised the services com­ well as the impact of inflation on nominal profits. ponent of the current account sufficiently to off­ set the trade deficit in 1979 (chart 5). Although both payments and receipts increased rapidly in 4. Direct investment income receipts and payments 1979 (table 4), net direct investment income in­ Billions of dollars1 creased $10.0 billion, or 46 percent. The spectacular gain in the earnings of foreign Transaction 1977 1978 1979 affiliates of U.S. firms was concentrated in the Receipts ....................................... 20.1 25.7 37.7 petroleum and manufacturing sectors. Condi­ Interest and dividends............ 12.8 13.6 19.6 Reinvested earnings ............... 7.3 12.1 18.1 tions in world petroleum markets produced large profit margins between the market prices of Payments .................................... 2.8 4.0 6.0 Interest and dividends............ 1.2 1.6 2.2 products and the original acquisition costs of Reinvested earnings ............... 1.6 2.3 3.8 crude oil. These forces were reflected also in the Net receipts ................................. 17.3 21.7 31.7 gap between spot market and official prices (dis­ 1. Details may not add to totals because of rounding. cussed earlier). Source. U.S. Department of Commerce. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 Federal Reserve Bulletin □ April 1980 Capital Flows Federal Reserve took actions to restrict the growth of money and credit. While the U.S. current-account balance varied Net intervention by the United States was little from quarter to quarter in 1979, private and small for the year as a whole, and U.S. official official capital flows varied widely. The dollar- reserve assets increased $1 billion (table 5) support measures on November 1, 1978, were largely through the receipt of an allocation of followed by a strong net inflow of private capital special drawing rights (SDRs). Foreign official through banking channels during the first half of asset holdings in the United States were reduced 1979, and the statistical discrepancy in the inter­ $15 billion primarily as a result of intervention to national accounts also showed sizable net in­ support their currencies. This reduction con­ flows. Foreign authorities sold large amounts of trasts strongly to the $34 billion increase in such dollars in this period to moderate depreciations holdings during 1978 that occurred mostly be­ of their currencies, and U.S. authorities were cause of dollar-support measures. Japanese sales able to reverse the large sales of foreign cur­ of dollars accounted for the bulk of net change in rencies that had occurred in the final months of foreign official accounts in 1979 as the yen fell 1978. almost 24 percent against the dollar. By midyear the dollar was again subjected to A net capital inflow of $6.6 billion was report­ downward pressure as the market reacted to an ed by U.S. banking offices during 1979, com­ acceleration of growth in the U.S. monetary ag­ pared with a capital outflow of $16 billion in 1978. gregates, rapid U.S. inflation, and another surge This inflow had reached nearly $18 billion by in oil prices. This pressure was met by heavy in­ midyear before being partially reversed in the tervention on the part of U.S. and foreign author­ second half. The bulk of the recorded net inflow ities and was reversed in October when the was accounted for by increases in U.S. banks’ 5. U.S. international transactions Billions of dollars1 1979 Transaction 1978 Year Ql Q2 Q3 Q43 Current account2 ......................................................................................... -13.5 -.3 1.7 -.1 -2.7 .8 Merchandise trade balance ................................................................... -33.8 -29.5 -5.2 -6.9 -9.5 -7.9 Exports ................................................................................................. 142.0 182.1 41.3 44.4 44.6 51.7 175.8 211.5 46.5 51.3 54.1 59.6 Investment income (net) ....................................................................... 21.6 32.3 7.0 7.5 8.2 9.6 Other services ......................................................................................... 3.8 2.5 1.2 .7 0 .7 Unilateral transfers, private and government .................................... -5.1 -5.7 -1.3 -1.4 -1.4 -1.6 Private capital flows .................................................................................. -27.1 -9.4 7.6 .4 -8.2 -9.3 Bank-reported capital net (outflow, -) .............................................. -16.0 6.6 13.7 3.8 -4.1 -6.8 U.S. net purchase (-) of foreign securities ...................................... -3.5 -5.0 -1.1 -.6 -2.2 -1.1 Foreign net purchase (+) of U.S. Treasury securities .................... 2.2 4.7 2.6 -.2 1.5 .9 Foreign net purchases of other U.S. securities ................................ 2.9 2.9 .8 1.2 .6 .3 U.S. direct investment abroad4 ............................................................ -16.7 -24.8 -6.0 -7.5 -6.8 -4.5 Foreign direct investment in United States4 ..................................... 6.3 7.7 1.0 2.0 2.8 1.9 Other corporate capital flows, net ...................................................... -2.2 -1.6 -3.4 1.8 0 n.a. Foreign official assets in United States (increase, +) ......................... 33.8 -15.2 -9.4 -10.0 5.7 -1.5 U.S. official reserve assets, net (increase, -) ....................................... .7 -1.1 -3.6 .3 2.8 -.6 U.S. government assets, other than official reserve assets, net (increase, -) ..................................................................................... -4.7 -3.8 -1.1 -.9 -.8 -.9 Allocation of special drawing rights ........................................................ 0 1.1 U 0 0 0 Statistical discrepancy .............................................................................. 10.8 28.7 3.6 10.4 3.2 11.5 1. Details may not add to totals because of rounding. 4. Includes reinvested earnings. 2. Current account seasonally adjusted; other accounts not seasonally adjusted. Source. U.S. Department of Commerce, press release, 3. Data for fourth quarter are partial and preliminary. March 20, 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1979 289 liabilities to related foreign banking offices. kets, and intervention sales of dollars by foreign U.S. banks borrowed $30 billion from their for­ authorities resisting depreciations of their cur­ eign branch offices during the first three quarters rencies have been large. At the same time, U.S. of 1979. Following the October 6 actions by the authorities have also sold dollars and have used Federal Reserve, which imposed reserve re­ the proceeds to retire debt incurred when the quirements on increases in managed liabilities dollar was under downward pressure. and raised the discount rate, U.S. banks reduced The dominant factor supporting the dollar has net liabilities to their foreign branches by $9 bil­ been the mounting evidence that U.S. monetary lion. policy is firmly aimed at reducing inflation and Other U.S. private capital flows in 1979 were the associated rise in interest rates in dollar-de­ marked by a net direct investment outflow of $17 nominated assets. Moreover, though the sharp billion, which exceeded the outflow in 1978 by increase in oil prices is expected to raise the U.S. about $7 billion. Much of this outflow represent­ trade deficit and make the task of controlling in­ ed higher retained earnings on the substantially flation more difficult, other industrial countries, increased profits of U.S. companies in foreign especially Germany and Japan, are suffering countries. Reinvested foreign earnings of U.S. large current-account deficits and inflation rates corporations increased $6 billion in 1979 (table in other countries also have accelerated. 4). In the fourth quarter, the flow of funds from As the full impact of higher oil prices is reflect­ U.S. corporations to their foreign affiliates ed in the U.S. trade accounts, the U.S. trade slowed substantially, as the relative cost of bor­ deficit is likely to rise. Thereafter, as the econo­ rowing funds in the United States increased my in the United States slows down relative to dramatically. the average of other industrial countries, the The statistical discrepancy in 1979 is estimated trade deficit is expected to level off or decrease. at nearly $29 billion compared with $11 billion in The current account as a whole is expected to 1978. The explanation for the widening gap in the show only a moderate deficit in the year ahead, statistics probably lies in unmeasured purchases as a rising volume of receipts on investment in­ of financial assets by foreign residents or unmea­ come and services will offset much of the enlarged sured net reduction of foreign claims to U.S. trade deficit. residents, including changes in terms of payment The enormous increase in oil prices has added for U.S. merchandise exports and imports. substantially to inflationary pressures in industri­ al and developing countries and has increased the strains on the international economic system. Outlook Policymakers in all countries have the task of re­ ducing inflation to tolerable levels while main­ Since the turn of the year, the dollar has been taining sufficient momentum in world activity to under upward pressure in foreign exchange mar­ avoid a serious recession. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 Electronic Fund Transfers: New Protections for Consumers, New Duties for Financial Institutions This article was prepared by Dolores S. Smith of suance and liability have been in effect since the Board’s Division of Consumer and Commu­ February 8, 1979.) nity Affairs. Although this article discusses the key rights and responsibilities under the regulation, finan­ New rules in the Board’s Regulation E, imple­ cial institutions should refer to the regulation it­ menting the Electronic Fund Transfer Act, pro­ self in preparing for compliance. vide important rights and safeguards to consumers using banking and payment services that employ computer and electronic technology Exemptions instead of checks, drafts, and similar paper in­ struments. The rules apply to transfers made to Certain types of transfers are expressly exempt or from consumer asset accounts (such as check­ from Regulation E even though they may involve ing or savings accounts) established primarily for computer or electronic processing. These in­ personal, family, or household purposes. clude transactions originated by paper in­ For financial institutions, Regulation E will struments such as checks; check guarantee or mean major new responsibilities. Institutions will authorization services, in which the consumer’s have to furnish disclosures regarding their elec­ account is not directly debited or credited; secu­ tronic fund transfer (EFT) services, follow cer­ rity or commodity transfers the primary purpose tain procedures for resolving errors, provide of which is a purchase or sale regulated by the monthly periodic statements (in many instances) Securities and Exchange Commission or by the for accounts that can be accessed electronically, Commodity Futures Trading Commission; and and generate receipts at electronic terminals. trust accounts. The rules will govern the newer types of elec­ Transfers authorized by telephone—to third tronic banking. These include automated teller parties or among the consumer’s accounts—are machines that perform a variety of banking trans­ exempt only if they do not occur by pre­ actions, pay-by-phone plans in which the con­ arrangement with the financial institution. sumer authorizes payments to third parties, and Certain automatic transfers within an institu­ point-of-sale systems that result in direct debit­ tion are also exempt. The exemption applies to ing of consumers’ asset accounts. The rules also transfers that take place automatically according cover more traditional electronic transfers, such to an agreement between the consumer and the as direct deposits and automatic bill payments. financial institution—for example, between a Regulation E applies not only to commercial consumer’s accounts (such as from checking to banks but also to savings and loan associations, savings), from the institution to the consumer’s credit unions, and even nonfinancial entities that account (interest credited to a savings account), offer EFT services to consumers. The new provi­ and from the consumer’s account to the institu­ sions become effective on May 10, 1980. The tion (loan payments and service charges). The original regulation, relating to issuance of access exemption does not cover intrainstitutional trans­ devices and consumer liability for unauthorized fers that are initiated at an automated teller transfers, has been in force since March 30, 1979. machine or under a telephone plan because these (The corresponding statutory provisions on is­ do not occur automatically. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

291 The exempt intrainstitutional transfers repre­ accept the consumer’s card. Validation must sent traditional transactions that are electronic await a specific request. The issuer may not, for only because of increased industry computeriza­ example, send out cards without a PIN and then, tion. It was believed that no special need called a week later, routinely mail the PIN or other se­ for extending the act’s protection to them and cret code. that any benefits would be outweighed by the Moreover, an institution must satisfy itself that costs of compliance. the person requesting validation is the consumer to whom the card was sent. The regulation speci­ fies several ways (such as signature comparison Issuance of EFT Devices and personal visit) in which the identity of the consumer might be verified, but permits any Regulation E prescribes the manner in which fi­ “reasonable” means. Whatever the method, an nancial institutions may issue access devices: institution that validates an access device for an cards, codes, and other means by which con­ impostor remains responsible for any unauthor­ sumers may initiate electronic transfers. The ized transfers. rules on issuance, in effect since March 1979, will The disclosures regarding terms and condi­ have little or no impact on institutions that issue tions that must accompany an unsolicited card these devices only when consumers apply for are those that normally will be required when a them. For accounts held by more than one cus­ consumer enters into an agreement for the elec­ tomer, a financial institution may issue multiple tronic service. They are intended to assist the cards based on a single request, provided the re­ consumer in making an informed decision. questing party specifically asks for them. Institu­ tions that prefer to issue a card only in response to a direct request from each customer on an ac­ Limits on Liability count may follow that practice. Institutions that send devices unsolicited, on Like the issuance rules, the liability provisions of the other hand, must now follow specified steps; the EFT Act have been in force since February before the act they could send at will. Because 8, 1979. They limit the risk of loss to consumers the act does not flatly prohibit unsolicited is­ for unauthorized transfers. The Congress consid­ suance, however, an institution that is only now ered early implementation of these rules impera­ entering the EFT market should not be seriously tive, in view of the potential risk to consumers disadvantaged relative to others. from a long delay in the effective date. The corre­ A financial institution may issue unsolicited sponding regulatory sections became effective devices if it meets four conditions. First, the de­ March 30, 1979. vice must not be validated—that is, it must be Under the law, prompt reporting of the loss or physically impossible, not merely impermissible, theft of a debit card or other access device will for anyone to use it to initiate transfers to or from limit a consumer’s liability. A consumer who no­ the customer’s account. Second, the issuer must tifies the issuer within two business days of include written disclosures of the terms and con­ learning that a card has been lost or stolen can be ditions that will apply if the consumer decides to held liable for no more than $50. (Note that keep the card. Third, the issuer must inform the whether the consumer “should have learned” is consumer that the card is not validated and must irrelevant.) The financial institution must bear provide instructions for its disposal if the con­ any additional losses. A consumer who waits sumer does not want it. Finally, the card must be longer to notify the institution risks liability of up validated only on request and after verification of to $500 for losses that occur after the two busi­ the consumer’s identity. ness days. This provision is intended to encour­ Validation involves whatever steps are neces­ age prompt reporting. To impose liability greater sary to permit electronic access to the con­ than $50, however, the institution must establish sumer’s account. For example, it could require that the subsequent losses could have been pre­ issuing a personal identification number (PIN) to vented if the consumer had given notice within the consumer or programming the computer to two business days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

292 Federal Reserve Bulletin □ April 1980 A different standard of liability may apply in The finder uses the card to withdraw $200 from the case of an unauthorized EFT that is reflected the consumer’s account on Tuesday. The con­ on a periodic statement. A consumer has 60 days sumer discovers and reports the loss on Wednes­ from the institution’s transmittal of a statement day. to examine it and report any unauthorized trans­ The consumer is liable for a maximum of $50. fer; doing so will limit liability to $50. Failure to report unauthorized transfers may subject the Situation 2. The consumer loses the card and consumer to unlimited liability for related unau­ secret code on Monday, learns of the loss on thorized transfers occurring after the 60 days Tuesday, and reports it immediately. On have elapsed. Wednesday, the finder uses the card to withdraw The statute is unclear regarding the exact lim­ $200. its on liability for unauthorized use. It specifies The consumer has no liability. the conditions for a consumer’s liability for an unauthorized electronic fund transfer [emphasis Situation 3. The consumer loses the card and added]. Many industry representatives believed secret code but is unaware of the loss. The finder this language to mean that the $50 limit on liabil­ makes five $100 withdrawals from the con­ ity was applicable to each unauthorized transfer. sumer’s account. The first periodic statement fol­ Under this interpretation, three separate unau­ lowing the transfers shows these withdrawals, thorized transfers made before notification to the but the consumer fails to examine it. The finder institution would have meant a total liability of then makes three more $100 withdrawals; these $150 to the consumer. appear on the succeeding periodic statement. Relying on the legislative history, however, Now the consumer examines both statements, the Board decided that the Congress intended the notices the unauthorized transfers, and reports $50 limit to apply to the series of transfers arising them to the financial institution on day 59 (count­ from a single loss or theft of an EFT device. This ing from the transmittal of the initial statement). interpretation is supported by the Senate report, The consumer’s maximum liability is $50. which draws a parallel to consumer liability un­ der the Truth in Lending Act for unauthorized Situation 4. The facts are the same as in Situa­ use of a lost or stolen credit card. Under Truth in tion 3, except that the consumer fails to examine Lending, the limit is a maximum of $50 per card, the second statement and does not report the un­ not per use of the card. According to the Senate authorized transfers within 60 days of the initial , report on the EFT bill (Fair Fund Transfer Act statement. The finder makes four more $100 S. Rept. 95-915, page 14), withdrawals after day 60. The consumer’s liability is $50 for losses re­ This section limits a consumer’s liability to a maxi­ flected on periodic statements 1 and 2 and the full mum of $50 if an EFT card is lost or stolen and the $400 for the later withdrawals. The institution consumer’s account drained. . . . This standard of must establish, however, that the $400 loss could liability is similar to the Federal credit liability stan­ have been prevented with notice from the con­ dards in effect since 1969. By making the consumer sumer during the 60-day period. The consumer liable for the first $50 withdrawn, the consumer is given a financial incentive to guard his card and ac­ may also be liable for any additional transfers cess code carefully and report their loss promptly. By made before the institution is notified. requiring the financial institution to absorb any further loss, it has an incentive to minimize the risk of un­ authorized uses by tightening an EFT system’s security. Conditions for Imposing Liability The situations described below illustrate the li­ In order to hold a consumer liable for an unau­ ability that a consumer could sustain for unau­ thorized transfer, the financial institution must thorized transfers. be able to prove that three conditions have been met: Situation 1. On Monday, the consumer loses a 1. The access device was accepted by the con­ billfold containing an EFT card and secret code. sumer. This means that the device must have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Electronic Fund Transfers 293 been requested and received, or that the con­ 7. The consumer’s right to stop payment of a sumer signed or used it, or that the consumer au­ preauthorized EFT. thorized another person to use it. For unsolicited 8. The financial institution’s liability to the cards issued after February 8, 1979, the card consumer for failure to make, or failure to stop must have been validated at the consumer’s re­ payment of, certain transfers. quest. 9. The circumstances under which the finan­ 2. The financial institution provided some cial institution will disclose information to third means of identifying the consumer (for example, parties (about the consumer’s account generally, a PIN as a secret code to initiate transfers at elec­ not solely about electronic transfers). tronic terminals). 10. The procedures for correcting errors. 3. The consumer received a disclosure regard­ While the disclosures must be in a readily un­ ing the potential liability for unauthorized use, derstandable form that the consumer may retain, the telephone number and address for reporting a the regulation does not prescribe type size, rela­ lost or stolen device, and the institution’s busi­ tive prominence, number of pages, or other as­ ness days. The business-day disclosure is impor­ pects of the format. Although financial institu­ tant because of the potential increase in tions are free to design their own disclosures, consumer liability from $50 to $500 after two the model clauses that are published by the business days. Board should facilitate compliance. These model clauses will be helpful in identifying the amount of detail that is required. To the extent that the Initial and Subsequent Disclosures clauses accurately describe its electronic ser­ vice, an institution that uses them will be insulated A consumer who contracts for an electronic from liability under the act and regulation with transfer service will be entitled under the act and regard to these disclosures. regulation to receive information on the terms A change in a term or condition listed above, if and conditions governing the service. These dis­ unfavorable to the consumer, must generally be closures must be given at the time an agreement disclosed in writing at least 21 days in advance. is entered into, or before the first electronic When an immediate change is needed for the transfer is made. The second alternative is in­ security of the EFT system or account, however, tended to accommodate situations in which a the institution may make the change and disclose consumer contracts for an EFT service with a it afterwards. third party (such as an employer, for automatic deposit of payroll) and the institution holding the consumer’s account learns of the agreement only after it has been made. Institutions must disclose Documentation of Transfers the following terms, to the extent that they are applicable: Regulation E requires institutions to provide 1. The consumer’s liability for unauthorized written evidence of electronic transfers. Receipts transfers. must be made available when a consumer initi­ 2. The telephone number and address to be ates a transfer at an electronic terminal, such as used for reporting unauthorized transfers. an automated teller machine (ATM). The receipt 3. The institution’s business days. will reflect the amount, the date and type of 4. The types of transfers that the consumer transfer, the type of account, the location of the may make and any limitations on frequency or terminal, an identification of the consumer or the dollar amount (unless information on the exact consumer’s account, and, in some cases, the des­ limitations would jeopardize the security of the ignated payee. system). Almost all existing terminals are equipped with 5. Any charges for electronic transfers or for printing devices. Consequently, this receipt re­ the right to make electronic transfers. quirement is not expected to impose a heavy 6. The right to receive documentation of burden on financial institutions, although ad­ transfers. justments may be necessary to capture and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 Federal Reserve Bulletin □ April 1980 store certain information at the time of each is by preauthorized credits to the accounttransfer. such as recurring payroll deposits or social se­ The provisions for a periodic statement, on the curity payments: (1) if the account is a pass­ other hand, will impose significant costs because book account, the institution need enter the of the frequency and detail of statements re­ amounts and dates of the transfers only when quired by the act. In many cases, financial insti­ the passbook is presented for updating; and (2) tutions will have to send statements monthly—a if the account is not a passbook account, the major change for those that now send them only institution may send the periodic statement quarterly, semiannually, or even annually. Insti­ quarterly instead of monthly. tutions with passbook accounts that can be debit­ ed electronically may have to convert them to statement accounts. N otice of Preauthorized Credits The periodic statement must contain two types of information: general account information and For convenience and safety, many consumers a complete description of each electronic trans­ have payments such as wages or social security fer during the cycle. Information about the trans­ benefits deposited electronically to a savings or fers can be disclosed on the statement or on checking account. Under the act and regulation, accompanying documents, and will include the these consumers are entitled to notice that amount of each transfer; the posting date (but not the deposit has been made (or in some cases, that the initiation date); the type of account; the type it has not been made). This provision applies ex­ of transfer (such as withdrawal, telephone bill cept when the payor gives notice that a transfer payment, or direct deposit); the geographic loca­ has been initiated—for example, by means of a tion of the terminal for transfers made at elec­ payroll stub showing the employee’s net pay. tronic terminals; and the name of the payee or Financial institutions may comply with this re­ the name of any third party from whom funds quirement in three ways: were received (such as an employer or the Social 1. Notify the consumer when a deposit has Security Administration). been received. An institution that adopts this The general account information will include method would have no obligation to notify the the number of the particular consumer account, consumer in instances when the deposit is not re­ either account maintenance charges or the total ceived. of all fees or charges imposed solely for EFTs 2. Notify the consumer only when a deposit is or for the right to make EFTs, and the begin­ not received. This method would require the fi­ ning and closing balances in the account. In ad­ nancial institution to maintain customer files re­ dition, the statement must provide the address garding dates on which deposits are expected. and telephone number to be used for inquiries or 3. Provide a readily available telephone line notice of errors. An institution that has adopted that the customer may use to verify whether a the telephone alternative for preauthorized cred­ deposit has been received. its (discussed later) would also disclose this num­ Consumers need not be given a choice as to ber. which type of notice they will receive. Although With two narrow exceptions, periodic state­ an institution may adopt any one or a combina­ ments must be sent at least monthly for any tion of these methods, the third alternative prob­ cycle in which electronic activity has occurred. ably will be used most frequently. For example, if the consumer uses a debit card to The Board adopted the telephone alternative access the account from an ATM or if a pre­ because it concluded, from the comments and authorized electronic debit to the account oc­ cost data, that the two notice options contained curs, the institution must send a statement for in the statute would impose prohibitive costs on that cycle. If there is no electronic activity, the most financial institutions. The Board was partic­ statement may be sent quarterly. ularly concerned about the potential impact on The following two exceptions to the require­ recipients of social security benefits under the ments for periodic statements are for accounts federal recurring-payments program. No payor in which the only means of electronic access notice is provided by the federal government, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Electronic Fund Transfers 295 and many institutions believed that the high cost quirement when the oral notice is given and must of giving the prescribed notice could force their provide the appropriate address. An institution withdrawal from the program. that requires but does not receive written con­ Proponents of the telephone alternative also firmation within 10 business days of the oral no­ noted that a consumer will be able to obtain veri­ tice may take advantage of the 45-day period fication of a deposit more promptly by phone without provisionally recrediting the disputed than by mail. item. It must, however, comply with all other er­ ror resolution requirements. An institution may require consumers to use a Error Resolution specific telephone number to give notice of er­ rors, but only if the number and its purpose are A major new provision of the Electronic Fund disclosed to consumers. The institution must al­ Transfer Act, modeled after the billing error pro­ so have procedures for referring notices that are cedures of Truth in Lending, gives consumers received elsewhere. the right to prompt resolution of any dispute re­ Once an institution determines that an error garding electronic transfers to or from their ac­ has occurred, it must correct the error promptly. counts. Notice of an alleged error must be given The correction must include refunding charges or within 60 days of transmittal of the periodic fees that were imposed as a consequence of the statement that reflects the transfer in question. error, and the institution must also give prompt The notice must enable the institution to identify oral or written notice of the correction. the consumer’s name and account number and, When the institution finds that no error has oc­ to the extent possible, give the type, date, and curred (or finds that an error was different in type amount of the error. or amount from that reported), the consumer is A financial institution will generally have 10 entitled to a written explanation. This explana­ business days in which to resolve an alleged er­ tion must also inform the consumer of the right ror. It must investigate, determine whether an er­ to request copies of the documentation relied on ror occurred, and inform the consumer of the by the financial institution. results within that period. An institution that needs more time may take up to 45 calendar days from the date of notice to Relation to Truth in Lending resolve the error if it provisionally recredits the consumer’s account for the amount of the alleged The Electronic Fund Transfer and Truth in error within 10 business days. It must also notify Lending Acts apply different rules for debit and the consumer of the recrediting and must give credit transactions, and some confusion among the consumer full use of the funds during the consumers and banking personnel is almost cer­ investigation. If the institution ultimately deter­ tain to arise. mines that no error occurred, then it may re­ The liability and error resolution procedures, debit the account and, contemporaneously, notify for example, will differ depending on whether the the consumer. plastic card issued to the consumer is a credit To ensure the consumer full use of provision­ card or a debit card. The rules will be different ally recredited funds, the Board’s rules also re­ even with regard to the same piece of plastic, in quire the institution—after the redebiting—to the case of the combined credit-debit cards used honor checks drawn by the consumer to third by many financial institutions. The rules will also parties and preauthorized transfers (up to the depend on whether the card is used to obtain redebited amount) for five business days from credit by electronic or nonelectronic means. the date of the redebiting notice. When something goes wrong, both the consumer Notice of an error can be given by the con­ and the issuer of the card will have to decide sumer orally or in writing, although an institution what kind of transaction is involved in order to may require written confirmation of an oral no­ know what set of rules applies. tice. To avail itself of this right, the institution In congressional testimony last year, the must tell the consumer of the confirmation re­ Board made preliminary recommendations con­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

296 Federal Reserve Bulletin □ April 1980 cerning the relationship between the two acts. Enforcement Regarding liability for unauthorized use, the Board recommended dropping the escalating The Electronic Fund Transfer Act and Regula­ EFT provisions for the simpler Truth in Lending tion E will be enforced in several ways. Section approach of a single liability limit. The benefit to 915 of the act provides civil liability for nonthe industry from the escalating levels currently compliance; consumers may recover actual dam­ in the EFT Act could be illusory, in view of the ages, statutory damages, court costs, and institution’s burden of proof for recovery of any attorney’s fees in a successful lawsuit. Section amount over $50. 916 prescribes criminal penalties for knowing The possible integration of the two statutes is and willful noncompliance, and also for a variety being explored by the Board’s staff, in the belief of fraudulent activities involving electronic fund that both consumers and the industry would ben­ transfers. Finally, a number of federal agencies efit from a unified approach. Parallel require­ are charged with administrative enforcement for ments may be helpful, for example, in error institutions that offer EFT programs. To facili­ resolution on matters such as oral or written no­ tate enforcement, institutions will be required to tice, time limits, and written confirmation. Indus­ maintain records of compliance for a two-year try, government, and consumer representatives period. will have an opportunity to study and comment As under the Truth in Lending Act, the Board on any recommendations. and its staff have been given special interpretive responsibilities. A party acting in good faith and in conformity with official interpretations will be Relation to State Law insulated from criminal and civil liability. To the extent that a state law governing electron­ ic transfers is inconsistent with the federal law Statutory Provisions not Embodied and is less protective, it will be preempted. The in Regulation Board will make the final determination about such inconsistency and has listed in the regula­ The following six sections of the act are not cov­ tion some of the criteria that will guide its deci­ ered in Regulation E because they are believed to sion. need no regulatory clarification or amplification: A state that has an EFT law may apply to the sections 910 (liability of financial institutions for Board for an exemption from the federal law. failing to make transfers or to follow instruc­ Such requests will be granted if the state’s law is tions), 912 (suspension of obligation when trans­ substantially similar to the federal law and if fers did not occur because of system malfunc­ there is adequate provision for the state to en­ tion), 913 (limiting compulsory use of EFT as force its law’s requirements. This provision is al­ a condition to credit or employment), 914 (pro­ most identical to that for Truth in Lending, under hibition of any waiver of rights created by the which five states have been granted certain ex­ federal law), and 915 and 916 (civil and criminal emptions. liability). □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

297 Industrial Production Released for publication April 15 Production of durable materials declined 1.0 percent further in March, partly reflecting re­ ductions in output of basic metals and of parts Industrial production declined an estimated 0.8 for consumer durable goods. Output of nondu­ percent in March, with reductions in output rable materials, mainly textiles and paper, de­ widespread. Production in February is now es­ clined 0.7 percent, after a slightly larger drop timated to have declined 0.2 percent, instead of in February. Output of energy materials rose rising slightly as indicated last month. In March, slightly in March. at 151.2 percent of the 1967 average, the index is 1.2 percent below the high of a year earlier. Seasonally adjusted, ratio scale, 1967 = 100 Output of consumer goods dropped 0.8 per­ cent in March, with significant reductions in both durable goods and nondurable goods. Production of nondurable goods declined 0.6 percent, re­ flecting cutbacks in gasoline, food, and clothing. Output of consumer durable goods was reduced 1.4 percent, with declines in home goods and automotive products. Production of home goods— mainly appliances, carpeting, and furniture—was down 1.7 percent in March, after almost as large a drop in February. Autos were assembled in March at an annual rate of 7.1 million units— down slightly from the rate in February and about 25 percent below that of a year earlier. Production of business equipment, which had shown strength over the last year, was unchanged in March, although transit equipment declined significantly. Production of construction supplies dropped 3.6 percent, with reductions widespread but particularly sizable for lumber. February Reserve indexes, seasonally adjusted. Latest figures: Output of materials was reduced 0.6 percent. March. Auto sales and stocks include imports. 1967 = 100 Percentage change from preceding month Percentage change Grouping 1980 1979 1980 Mar. 1979 to Feb.p Mar.e Oct. Nov. Dec. Jan. Feb. Mar. Mar. 1980 Total industrial production ..................... 152.4 151.2 -.1 -.1 .1 .3 -.2 -.8 -1.2 Products, total ........................................... 150.3 149.1 -.2 -.1 .2 .3 .1 -.8 -1.1 Final products ....................................... 147.9 147.2 -.3 -.1 .3 .2 .4 -.5 -.7 Consumer goods ............................... 149.3 148.1 .0 -.5 -.3 .0 .5 -.8 -3.1 Durable ........................................... 145.0 142.9 .5 -2.2 -1.7 -2.9 1.8 -1.4 -12.7 Nondurable .................................... 151.0 150.1 -.2 .1 .3 1.1 .1 -.6 1.0 Business equipment ......................... 175.8 175.8 -.9 .3 .9 .7 .3 .0 2.9 Intermediate products ......................... 159.2 156.1 .0 .0 .1 .5 -.9 -1.9 -2.7 Construction supplies...................... 153.7 148.2 .3 -.1 -.4 .4 -1.9 -3.6 -5.7 Materials .................................................... 155.5 154.5 .0 .1 -.1 .3 -.8 -.6 -1.2 p Preliminary. e Estimated. Note. Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

299 Statements to Congress Statement by Henry C. Wallich, Member, Board the Fund, and concrete support in the form of of Governors of the Federal Reserve System, be­ congressional approval of the quota increase fore the Committee on Foreign Relations, U.S. would allow the Fund to handle an expanded role Senate, March 17, 1980. with a stronger financial position and with en­ hanced authority. Mr. Chairman, I appreciate the opportunity to Active U.S. participation in the IMF is in the appear before the committee on behalf of the U.S. national interest. The United States bene­ Federal Reserve Board in support of the legisla­ fits directly from a financially strong IMF be­ tion, S. 2271, currently before the Congress to cause it may want to draw on the Fund in the approve an increase of 50 percent in the U.S. future, as it did in 1978 as part of the November 1 quota in the International Monetary Fund (IMF). package of anti-inflation actions. In an environ­ Prompt passage of this legislation is in the inter­ ment of increased international financial strains est of the United States and will help to maintain and of increased sensitivity of the U.S. economy a smoothly functioning international financial to developments abroad, the United States also system. Failure to act promptly would weaken benefits indirectly from the IMF’s efforts to alle­ both substantively and symbolically U.S. lead­ viate such strains. In many instances, without ership in the international community. temporary financial assistance from the IMF, An increase in the resources available to the countries would be forced to take severe adjust­ IMF at this time is essential if the Fund is to con­ ment actions that could have a disruptive effect tinue to play a central role in dealing with the on the international economy. unprecedented scale of payments imbalances With the introduction of new IMF facilities that its members are facing. The United States, and changes in its operating procedures in recent with more than a fifth of the total quotas in the years, potential access by members to the Fund, is the largest member of the IMF, and the Fund’s general resources has increased consid­ Fund cannot continue to function effectively erably and appropriately. More significantly, without commensurate U.S. participation in its however, in view of the adverse impact of the financial operations. higher oil prices on the external positions of The IMF is a broadly based international fi­ many countries, the need for short-term balance nancial institution, whose members include in­ of payments financing in coming years may well dustrial and developing countries, oil-exporting increase dramatically. The IMF should be in a and oil-importing countries, and even several position to meet substantially increased calls on centrally planned economies in its membership. its resources, and the proposed increase in IMF Its importance in facilitating the efficient func­ quotas would broaden the financial base of the tioning in the international monetary system is Fund and help it to do so. growing. It has been assigned major new func­ The Fund’s resources have experienced a con­ tions and responsibilities in recent years, includ­ siderable erosion in relation to the growth of the ing expanded surveillance of economic policies world economy over the past 10 to 15 years. By and exchange-rate practices of its members un­ 1977, when the most recent quota review began, der the second amendment of the IMF Articles of total quotas in the Fund, for example, had de­ Agreement. An IMF substitution account is cur­ clined to about 4 percent of the value of world rently under active consideration and negotia­ imports compared with more than twice that pro­ tion; this would add further to the responsibilities portion in the 1960s. Developments since 1977, of the Fund. The U.S. government has been in especially the increase in countries’ oil import the forefront in broadening the responsibilities of bills and the general effect of inflation on the val­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

300 Federal Reserve Bulletin □ April 1980 ue of imports, have reduced the ratio of IMF with the Fund. Among developed countries, quotas to world imports even further. Since an Great Britain and Italy have benefited from IMFadditional increase in IMF quotas is not now assisted stabilization programs in recent years, planned for another five years, the proposed 50 and an increasing number of developing coun­ percent increase in quotas barely would maintain tries can point to the successful turnaround of the current size of the Fund’s resources in rela­ their economies in large part because of the sta­ tion to the expected growth of world trade in the bilization programs that they implemented in period ahead. conjunction with a standby arrangement with the Because of recent disturbances to the inter­ Fund. At present, some 24 countries are covered national economy that had not been anticipated by IMF credit arrangements that are conditioned at the time the quota increase was negotiated in upon their adherence to policy-performance cri­ 1978, the proposed increase is a minimum step teria. The Fund’s leverage in continuing to en­ toward meeting the enlarged prospective financ­ courage its members to introduce necessary ing needs of the IMF and its members. The world adjustment actions in conjunction with drawings economy once again is confronted with the prob­ on IMF credit facilities will be heavily dependent lem of dealing with the financial consequences of on the Fund’s possessing sufficient resources to a huge current-account surplus of the Organiza­ continue providing such credits. tion of Petroleum Exporting Countries and the In recent years, the International Monetary accumulation of vast reserves by OPEC mem­ Fund has been viewed by some as an aid institu­ bers, together with magnified current-account tion offering long-term development loans. This deficits for most oil-consuming countries. In is a mistaken view; the IMF is designed to pro­ a speech earlier this month, Chairman Volcker vide short-term balance of payments financing focused on the implications of those financial assistance to all its members, developed coun­ flows—often called the recycling process. He ex­ tries as well as developing countries. When the pressed the hope that the IMF would play a ma­ Fund provides financial assistance, it must have jor role in the recycling process that lies ahead. a reasonable assurance that the associated ad­ With your permission, I would like to submit a justment programs will be successful in assuring copy of these remarks for the record. The obser­ repayment and in enabling the IMF to maintain vations on the recycling process should help to the “revolving fund” nature of its operations. place the role of the IMF in the current situation Conditionality associated with drawings on the in a somewhat broader perspective. Fund that often are large in relation to a mem­ The strengthening of the financial position of ber’s quota, therefore, are appropriate and nec­ the Fund resulting from the increase in Fund essary. quotas is an essential element in preparing for the The IMF, however, has come under increased strains that may well develop on the international criticism by some who claim that it has been too financial system in the next year or two. The role harsh in its policy advice. It is true that IMFof the Fund under the current circumstances will sponsored stabilization programs often require be important not only because of its financial re­ substantial economic retrenchment by borrowing sources but also because through the good of­ countries, involving at times political and social fices of the IMF there is a greater chance to costs for such countries. Restrictive adjustment achieve a better mix between adjustment and fi­ measures in most instances, however, are neces­ nancing of the huge external imbalances the sary in order to correct the underlying imbal­ world economy faces. ances that have led to the need for balance of Higher IMF quotas do not mean a reckless in­ payments assistance in the first place. The need crease in liquidity that will be frittered away. Re­ for such corrections does not come from the ac­ sources provided by the IMF typically have been tions of the Fund, but rather from those actions used constructively, and IMF members have an inside and outside the country that bring about excellent repayment record. An encouraging de­ the unsustainable external deficits. Some of the velopment in recent years has been the increase difficulties associated with such stabilization pro­ in the number of countries adopting stabilization grams could be eased if resort to the Fund came programs as part of standby credit arrangements earlier, before the situation has worsened to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 301 point where drastic action is required. However, bers in the coming years than it has assumed in order to encourage members to come to the recently. A strengthening of the Fund’s financial IMF, the Fund’s resources must be ample, and position by an increase in members’ quotas the terms of conditional credits must be other­ would increase the likelihood that more coun­ wise attractive. tries would come under the Fund’s conditional Although the IMF will be expected to assume lending umbrella. Such a development, in turn, an expanded role in the recycling process ahead, would promote greater complementarity be­ the actual amount of resources provided by the tween IMF financing, other official financing, and IMF will remain small in relation to total finan­ private bank lending to such countries. At the cial needs. International credit markets, and es­ same time, the increased capacity of the Fund to pecially credits from private commercial banks, finance payments imbalances of its members have played an important role in recent years in does not in any way relieve public and private channeling funds from countries in surplus to borrowers and lenders from their responsibili­ countries in deficit. We have every reason to ex­ ties—on the one hand for servicing outstanding pect that these markets will continue to play a loans and on the other for care and informed major role in providing credits to finance external judgment in deciding on new commitments. deficits in the period ahead. At the same time, It would be desirable for authorities in borrow­ the IMF should play a strategic role in helping ing countries, when they see trouble ahead, to create the economic conditions in borrowing consult with the IMF promptly to develop a pro­ countries to attract private capital flows and gram that will maintain their creditworthiness. It maintain access to credits from banks. also would be helpful if commercial banks, when One potential danger in the recycling process they recognize that a liquidity problem is devel­ that must be avoided, however, is the over­ oping in one of the countries borrowing from loading of the commercial banking system. Ra­ them, would urge the country to seek the advice tios of loans to developing countries to banks’ of the Fund, as well as its assistance, in working capital or assets of U.S. banks have declined out a smooth transition to a more viable rate of slightly over the past two years. For foreign external financing. The constructive role of the banks, loan ratios have risen, but based on the IMF also could be reinforced if commercial latest available information they remain lower banks were to structure their lending policies so than for U.S. banks. Thus, in the aggregate, it as to support the Fund’s role in the adjustment would appear that some leeway remains for pru­ process. dent increases in loans to developing countries In sum, in light of the serious problems that the by U.S. and foreign banks without raising their international economy is facing, it is essential exposure ratios to excessive levels, particularly that we equip ourselves adequately to meet the since the capital and assets of banks also would challenges ahead. We will have to work on a be expected to increase. The capacity and will­ number of fronts simultaneously, in particular ingness of the banking system to provide addi­ the pursuit of sound macroeconomic policies that tional financing to developing countries, succeed in curbing inflationary pressures, the however, will vary greatly from bank to bank and adoption of effective energy policies, the im­ will continue to depend on the condition of indi­ provement of international cooperation and con­ vidual borrowers and on the terms of the loans. sultations, and the strengthening of international Emerging problems seem likely, as in the past, to institutions such as the International Monetary remain limited to a small number of countries. In Fund. response to increased risks, lending spreads may At this time, about 29 percent of the IMF well widen and maturities may shorten. membership, with nearly a quarter of the total Given the expected increases in demands for quotas in the Fund, already has given parlia­ balance of payments financing, as well as the mentary approval to the increase in IMF quotas— large external indebtedness that many countries in terms of special drawing rights, from about already have with commercial banks, the IMF SDR 39 billion (about $50 billion) to about SDR should be in a position to meet a larger propor­ 58 billion (about $75 billion). For the proposed tion of the immediate financing needs of its mem­ increase in quotas to take effect, members with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

302 Federal Reserve Bulletin □ April 1980 three-fourths of the Fund quotas must give their crease in IMF quotas will strengthen the Fund’s approval by November 1, 1980. Without U.S. influence in promoting over time the balance of participation, therefore, little likelihood exists payments adjustments by those members that that the quota increase could be implemented. are facing increased external financial diffi­ Prompt approval by the Congress of the legisla­ culties. Access to ample Fund resources and as­ tion increasing the U.S. quota in the IMF would sociated financing by developing countries, in spur other countries to consent to increases in particular, should help these countries to avoid their quotas. An increase in the U.S. quota from large and abrupt reductions in their growth rates SDR 8.4 billion (about $10.9 billion) to SDR 12.6 and imports. If these countries are compelled to billion (about $16.3 billion) would reaffirm the cut imports sharply, the United States and other U.S. commitment to an open international finan­ industrial countries will feel the economic ef­ cial system and to the key role of the Inter­ fects. Moreover, financing by the IMF would national Monetary Fund in fostering the smooth reduce temptations by countries to adopt pro­ operation of that system. In view of the impor­ tectionist measures to deal with their external tant attention that is being directed at reducing payments problems, a step that would be con­ the size of the U.S. budget deficit, I would add trary to their own longer-term best interests and that under the alternative budget approaches that to the interests of their trading partners, includ­ the Treasury currently is discussing with inter­ ing the United States. ested congressional committees, U.S. payments The proposed IMF quota increase thus will on its quota subscription would not affect net benefit both the United States and the inter­ budgetary outlays or, therefore, the federal bud­ national financial system. The Federal Reserve get deficit. Board, therefore, urges prompt approval by the Enlarging the financial capacity of the Fund at Congress of the legislation increasing the U.S. this time by putting in place the proposed in­ quota in the International Monetary Fund. □ Statement by Henry C. Wallich, Member, Board banks may make it difficult for these countries to of Governors of the Federal Reserve System, be­ finance their anticipated current-account defi­ fore the Subcommittee on International Trade, cits. The latter situation would jeopardize the de­ Investment and Monetary Policy of the Com­ velopment objectives of many developing mittee on Banking, Finance and Urban Affairs, countries since these countries on balance need U.S. House of Representatives, April 1, 1980. to import capital to supplement their domestic savings. Moreover, a lack of adequate financing It is my pleasure to appear before this sub­ flows would lead to excessively restrictive poli­ committee to discuss the important issue of re­ cies by developing countries to deal with ex­ cycling the surplus of the Organization of ternal imbalances, with potential adverse effects Petroleum Exporting Countries, the relationship on the United States and on other industrial of this issue to bank lending to developing coun­ economies. tries, and the need for increasing quotas in the The Federal Reserve has been conscious of the International Monetary Fund (IMF). need to avoid excessive lending as well as of the The letter from the chairman of the sub­ need to avoid a sharp curtailment of lending by committee inviting the Board to testify has accu­ U.S. banks. In cooperation with the other super­ rately pointed to the dilemma facing the visory agencies, we have designed our examina­ international financial system: a high level of tion procedures in a manner that would allow lending by banks to developing countries could bank participation in the recycling process, while lead to excessive risk concentrations at banks, guarding against excessive exposure by individ­ while on the other hand a low level of lending by ual banks to individual countries. The new exam­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 303 ination procedures are being implemented by the tries were quite high relative to the risks, and three federal regulatory agencies. U.S. banks expanded their outstanding claims on The Federal Reserve Board also strongly sup­ developing countries as a proportion of their to­ ports increasing the U.S. quota in the IMF, as I tal assets. In the past two years, however, U.S. stated in my testimony on this legislation on bank lending to these countries appears to have March 17 before the Senate Foreign Relations been effectively constrained by the very low Committee. With your permission, I would like yields on new credits that barely compensated to submit that testimony for the record. banks for the costs of making and servicing the In connection with today’s testimony, I would loans, much less for any risks of adding new like to provide the subcommittee with some sta­ credits to their portfolios. Thus, between 1976 tistical material on the general problem of bank and 1979, U.S. banks were less active in lending lending and recycling, which was included in to these countries, and the ratio of their claims Chairman Volcker’s speech of March 1. on developing countries to their total assets de­ The subcommittee’s letter of invitation re­ clined slightly. quested comment on the factors that might con­ The experience of foreign banks has been strain the role of banks in lending to developing somewhat different. Foreign banks, in general, countries in the future, relative to the role these have lower levels of concentration in lending to institutions played in the past several years. Be­ developing countries and, in many cases, lower tween the end of 1974 and the end of 1979, out­ capital-to-asset ratios. These banks have been standing claims of banks from all countries on willing to continue to expand their lending to de­ non-oil developing countries increased on aver­ veloping countries relative to their assets, despite age about $20 billion per year. During this same the seemingly low returns, because of their lower five-year period, the average annual current-ac­ concentrations of lending and because their count deficit of the developing countries was lower capital-to-asset ratios allowed them to earn about $26 billion, and these countries on balance a higher return on capital for any given margin added $8 billion to $10 billion per year to their between their funding costs and the yield on the international reserves. Subtracting bank borrow­ loans. ings used to finance reserve increases from total The rapid expansion in lending by foreign net borrowing from banks, it appears that over banks has caused some concern among foreign the last five years net borrowings from banks regulatory authorities. The German and British have financed about one-half of the aggregate authorities have begun to require banks in those current-account deficit of the non-oil developing countries to maintain detailed records on a con­ countries. solidated basis including, as a minimum, lending The extent of new bank lending to developing by their head offices and foreign branches. Since countries or any other borrower is determined by last fall, Japanese banks have been constrained the interaction of three variables: yield, risk, and by a request from the Ministry of Finance to limit concentration of credits to a borrower in the their international lending. banks’ portfolios. A higher yield, within limits, Looking to the future, lending by U.S. and for­ can compensate for a slightly higher risk. In my eign banks will depend primarily on the extent to view, the risk premiums implicit in country lend­ which spreads and fees on these loans increase ing have, in recent years, not been adequate. In relative to the increased risks and, to some ex­ addition, however, as the concentration of cred­ tent, on the actions of bank regulatory authori­ its to individual borrowers or borrowing coun­ ties of industrial nations. The level of risk will tries increases in relation to a bank’s total depend in large part upon the policies pursued by portfolio or capital, a prudent, well-managed the borrowing countries. If spreads and fees rise bank will demand a greater spread for a given somewhat relative to the risks, then U.S. and level of risk before it adds more of such credits to foreign banks would be expected to increase the its portfolio. pace of their net new lending to developing coun­ With respect to U.S. banks, in the 1974-76 pe­ tries relative to their assets and capital. As riod the returns on lending to developing coun­ shown in the attached material, changes in con­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 Federal Reserve Bulletin □ April 1980 centrations relative to assets occur relatively al risks are somewhat greater in 1980 and 1981 slowly over time in the aggregate despite large than in 1974 and 1975. The situation clearly var­ increases in outstanding claims because the ies greatly from country to country. Recent his­ banks’ assets and capital also increase over tory has taught us that the positions of some time.1 Changes in concentrations relative to as­ countries can improve dramatically in a short pe­ sets do, however, occur much more rapidly at riod of time. Unfortunately, in other cases, the individual banks. external situation has deteriorated rapidly over The willingness of banks to expand their inter­ time, either as a consequence of financial mis­ national lending is, as I noted, highly dependent management or because of external (and some­ on their evaluations of the risks on these loans. times internal) events over which the country has Evaluating country risk is an extremely difficult little control. task that involves complex interactions of politi­ While this general background suggests it cal as well as economic factors. Compared with would be reasonable for banks in general to con­ 1973, the developing countries’ debt burdens, tinue to increase their lending to developing whether measured in real (inflation-adjusted) countries, it would seem appropriate under cur­ terms or relative to their exports and gross na­ rent circumstances for banks to demand higher tional product, have increased. Moreover, in spreads to compensate them for greater risks. In 1980 the developing countries will have a signifi­ the past, the risks on loans to these countries cantly higher oil-import bill than in 1979, and this have appeared quite low, as shown by the loanbill will absorb a substantially higher proportion loss record on lending to developing countries by of their export earnings. In addition, developing U.S. banks since 1975. However, arrearages and countries will bear the indirect effects of the collection problems may be emerging for a few higher price of oil on the economies of the devel­ countries—such problems could foreshadow oped countries through reduced growth in their some future deterioration of that excellent rec­ exports, and through higher prices for capital ord. In such a case, lending spreads would be ex­ equipment and other imports from countries of pected to increase accordingly. Some increase in the Organization for Economic Cooperation and spreads seems appropriate in any event, given Development (OECD). Events in Iran, Nicara­ the downward trend in bank capital ratios. gua, and elsewhere have highlighted the political The subcommittee has raised the question of risks associated with international lending. Final­ the relationship between bank capital and recy­ ly, there is no assurance that the OPEC surplus cling. The Federal Reserve believes that, in view and the counterpart deficit of the oil-importing of the decline in banks’ capital ratios in the last countries are likely to decline as rapidly in the few years, increases in banks’ capital would be early 1980s as they did several years after the highly desirable. Bank capital adequacy, however, 1973-74 oil price increases. must be judged against the entire spectrum of Balanced against these negative factors are the bank assets and not on the basis of loans to any greater international reserves of the developing particular group of borrowers. Capital ratios can countries, the increased resources of the IMF, improve even when lending to one group of bor­ the lesser likelihood that the OECD countries rowers grows faster than bank capital if lending will experience a widespread and severe reces­ to other types of borrowers on average grows sion as in 1975, and the lesser likelihood that pri­ more slowly. For any given ratio of capital to as­ mary commodity prices will fall as much in 1980 sets, an important determinant of bank sound­ and 1981 as they did following the 1973-74 OPEC ness is portfolio diversification. oil price increases. With these observations in mind, it is instruc­ Weighing all these factors is indeed complex, tive to examine the recent record of bank lending but, on balance, I would conclude that the gener­ to developing countries relative to the banks’ capital. The ratio of lending to developing coun­ tries to capital for all U.S. banks active in inter­ 1. The attachments to this statement are available on national lending in the aggregate has actually request from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. declined slightly between the end of 1977 and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 305 June 1979, although for the larger banks it has existing exposure and the strength of the borrow­ increased slightly. ers. It would take into account the bank’s histori­ If the capital funds of the U.S. banks involved cal lending patterns, its management capabilities, in international lending were to increase on the its system for managing risk, and the size of the order of 8 to 11 percent in 1980, the share of U.S. bank’s exposure relative to other banks. In cases banks in the projected total of new bank financ­ when the examiner judges an exposure to be ex­ ing of the non-oil developing countries in 1980 cessive, a specific criticism would be noted in the could be about equal to their share of outstanding front of the examination report or cited in a letter claims (about 40 percent), only with some fairly to the bank’s board of directors. These cases are moderate increase in the aggregate ratio of loans expected to be relatively few in number and usu­ to these countries relative to the banks’ capital ally result from some deficiency at a particular and assets. If existing capital-to-asset ratios were bank, rather than a general regulatory constraint to be maintained, the additional lending would be on lending to an individual country. only, very approximately, one-half as large. It U.S. bank regulatory authorities evaluate the would be desirable, of course, that this new lend­ foreign activities of U.S. banks on a fully consol­ ing be spread more among those individual U.S. idated basis that includes their foreign branches banks that are less exposed to individual borrow­ and majority-owned subsidiaries, drawing upon ing countries. the Country Exposure Report, which is prepared In view of the active role of U.S. banks in the on a fully consolidated basis. The reason for this whole area of international lending, the federal approach is that loan losses at foreign branches bank regulatory agencies have devoted sub­ of U.S. banks and, in most cases, at foreign sub­ stantial effort to evaluating and modifying the in­ sidiaries are not different from loan losses at the ternational examination procedures. For the banks’ domestic offices, because they are charged subcommittee’s information, I would like to dis­ off against the earnings and capital of the parent cuss the new procedures. The three federal bank institution. regulatory agencies now have a common ap­ The Federal Reserve and other regulators con­ proach for evaluating country risk in bank exami­ duct separate examinations of foreign branches nations. The system focuses on concentrations and some foreign subsidiaries. These examina­ of exposure relative to capital. Foreign loans are tions are conducted mainly to determine that the not classified for country risk per se except in the foreign offices are in conformance with U.S. reg­ few cases when payments have been interrupted ulatory policy and that their activities are being or when an interruption is deemed imminent. controlled and coordinated properly by their Data collected on the semiannual Country Ex­ head offices. posure Report are used by the examiners to com­ Bank lending to developing countries or other pute exposure to individual countries by categories of borrowers in general is not directly individual banks. Comments on large exposures constrained by regulatory policy. In participating are given in the examination report under a sec­ in the design of the new international examina­ tion entitled “Concentrations of Transfer Risk tion policy, U.S. bank supervisors were well Warranting Special Comment.” These com­ aware that a policy that focused on classifying ments on exposures are not a directive telling countries as unacceptable risks might cause un­ banks to refrain from further lending to a country necessary problems for individual borrowing nor are they included in the bank’s asset quality countries. The system that was developed avoids rating; rather they are designed to call ex­ country classifications, except in cases in which posures that are worthy of review to the atten­ a country is not performing on its obligations, tion of senior management. and focuses on individual bank exposure. In In reviewing an individual bank’s foreign ac­ view of the deliberate flexibility in the examina­ tivities, an examiner may conclude that certain tion system, there does not appear to be any exposures appear excessive in light of the posi­ need to modify it to deal with recycling the large tion of the bank. This judgment would be based OPEC surplus. However, the examination sys­ on a number of factors in addition to the level of tem I have described is relatively new. Based on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 Federal Reserve Bulletin □ April 1980 operating experience, some adjustments and re­ policies of borrowing countries, a role that is visions may be necessary. much more appropriate for a public institution The subcommittee has asked for comment on than for private commercial banks. Better coor­ whether it is reasonable to expect banks in gener­ dination between the IMF and commercial banks al to continue to provide new credits to the de­ would be desirable to prevent instances in which veloping countries. In recent years foreign banks bank credits are used by countries to avoid com­ have rapidly expanded their lending to devel­ ing to the Fund when difficulties arise. oping countries and Eastern Europe. Measured In view of the subcommittee’s interest, I as a percentage of assets, their exposure is still would like to summarize recent developments in below that of U.S. banks so there is potential for our concerns relating to the Eurocurrency mar­ increased foreign bank participation. ket. In the face of increased OPEC surpluses and A considerable number of large U.S. banks al­ corresponding deficits of oil-importing countries, so have relatively small exposures to individual the scale of international financial flows may well countries. These banks could increase their ex­ increase relative to purely domestic flows. Many posure on a selective basis without bringing their of these flows will originate in domestic financial risk exposure to unacceptably high levels. More­ markets, but a significant proportion will involve over, participation by smaller U.S. banks in the Eurocurrency market. These flows through lending has been rather limited in recent years, the Eurocurrency market and international bank and these institutions do have scope for in­ lending have been of increasing concern to many creased participation if spreads were to widen. central banks and bank regulatory authorities. My conclusion from the available information is The central bank governors of the Group of Ten that there appears to be considerable room for countries and Switzerland recently agreed to im­ further U.S. and foreign bank participation in prove informational flows on such lending, in­ lending to developing countries. cluding a general agreement that major banks of Whether it is realistic or desirable to expect these countries should report their activities on a banks to participate in further lending is a sepa­ consolidated basis; they also agreed to increase rate issue. The Federal Reserve and other regula­ their monitoring of developments in these mar­ tory agencies do not want to substitute their kets from the standpoint of prudential consid­ judgment for the business judgment of individual erations, as well as macroeconomic and mone­ banks. Rather, the supervisor’s role is to caution tary policy concerns. These measures will put banks about the risks of excessive concentration supervisory authorities in a stronger position to and to make certain that banks have appropriate keep abreast of market developments. procedures for monitoring and reviewing large In summary, Mr. Chairman, I believe that the exposures. In order to help ensure adequate in­ banking system will continue to play an impor­ formation to the banking system, the Federal Re­ tant role in the recycling process. Commercial serve participates in efforts, such as the banks, however, cannot be expected to assume semiannual survey by the Bank for International complete responsibility for recycling the OPEC Settlements, to increase the flow of financial in­ surplus. Countries in very large deficit will have formation to banks. to recognize that the need to adjust rather than to The prospects for continued bank lending to finance their external imbalances is greater now developing countries will in the final analysis de­ than it was after the 1973-74 oil price increases. pend in large part on the soundness of the inter­ The OPEC nations should be expected to pro­ national financial system and the soundness of vide more aid and direct financing, particularly the financial policies of the borrowing countries. since the size of their accumulated surpluses will Increasing the resources of the IMF, through an allow them to hold a diversified portfolio of as­ increase in the quotas of the United States and sets. The IMF can play an important role in the other member countries, would improve the abil­ recycling process, but to be effective the IMF ity of the Fund to meet the financing needs of its needs to be sure of having adequate resources. members. Increased resources for the Fund The Board urges the Congress to act expedi­ would place it in a better position to influence the tiously to increase the U.S. quota in the Fund. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 307 Statement by Paul A. Volcker, Chairman, Board might otherwise be placed on some sectors of the of Governors of the Federal Reserve System, be­ economy dependent on bank credit. fore the Subcommittee on Taxation and Debt Monetary policy cannot—without peril—be Management of the Committee on Finance, U.S. relied on alone to halt inflation. The other major Senate, April 2, 1980. tools of public policy must also be brought to bear on the problem, with fiscal policy playing a Mr. Chairman, I am pleased to appear before this central role. Thus, I am greatly encouraged by subcommittee to discuss the proposed increase the efforts of the administration and the Congress in the limit on the public debt. I should like to to achieve a balanced budget in the 1981 fiscal focus my opening remarks on the broader issues year. I frankly would urge an even earlier startof federal finance highlighted by the need to raise doing what we can right now—and I would per­ the debt ceiling. It is important that we under­ sonally encourage the Congress to work with the stand the implications of deficit finance in the administration to implement even deeper cuts in current economic environment. It is also impor­ spending than are currently in prospect. But tant that we recognize that the conventional mea­ what is essential is that there be a clear com­ sures of the budget and the national debt mitment to the consistent application of budget­ significantly understate the scope of the govern­ ary discipline in the years to come, and a reduced ment’s presence in the credit markets. I want to rate of increase in expenditures should be the emphasize the need for effective control of feder­ centerpiece of that discipline. Such a policy, al financing activities as we attempt to solve the complementing consistent control of the money nation’s serious economic problems. supply, would provide a credible basis for antici­ Fighting inflation stands clearly as the most ur­ pating sustained progress against inflation. gent task of economic policy today. The ominous That we are faced again with an imminent need acceleration of price increases over the past year to raise the debt ceiling is a sobering reminder of has given rise to a sense of real crisis. There is how difficult it has been in practice to achieve a now, I believe, the resolve to resist the inflation­ reasonable balance between federal outlays and ary momentum that has been building for so receipts. It would be unreasonable and unwise to loqg. The Federal Reserve, for its part, has insist that the government budget be in balance moved decisively to reduce progressively the or in surplus every year in all economic circum­ growth of money and credit. That effort seems to stances. But deviations should be the exception, me an essential component of any effort to re­ and it would be naive to ignore the obvious bias store price stability. To that end, we have taken a toward deficit that has been apparent in the con­ series of actions to improve our control over the duct of fiscal policy. The record speaks for itself; growth of the monetary and of the credit aggre­ the federal budget has been in deficit in every one gates. of the past 10 years and has been in surplus only Last October 6, in addition to raising reserve once during the past 20 years. Most recently, the requirements and the discount rate, we made a federal government has continued to run huge change in our operating procedures. We believe deficits even in the late stages of one of the long­ that these measures contributed importantly to est expansions in the postwar era. our success in bringing about a moderation of In retrospect, a tendency in the development monetary expansion in subsequent months. A of fiscal policy to focus more on the possibility of second major set of actions was announced on weakness in economic activity than on the dan­ March 14. I refer to the program of special credit ger of greater inflation is apparent. In my judg­ restraints that was established in conjunction ment, the resulting pattern of budgetary with the administration’s anti-inflation effort. decisions has played a major role in both accom­ While it is too early to evaluate the effects of our modating and intensifying inflationary pressures. latest actions—which are supplementary to our It also should serve as a warning in the present basic effort and temporary—I fully expect that circumstances. The current resolve to cut ex­ they will reinforce the measures taken last Octo­ penditures and balance the budget in the next fis­ ber, while tempering the degree of pressure that cal year is to be applauded. But history strongly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 Federal Reserve Bulletin □ April 1980 suggests that it will be difficult to sustain budget­ directly increase federal borrowing needs. In ad­ ary discipline. This lesson must be kept firmly in dition to its direct loan programs, the federal mind if the sacrifices made in the short run are to government also provides financing assistance produce lasting benefits. through loan guarantee programs. Outstanding The financial counterpart of persistent budget loans guaranteed by the federal government to­ deficits has been, of course, a mushrooming of taled $228 billion at the end of last year. the federal debt. The federal debt subject to stat­ As intended, the direct government loans and utory limits reached $845 billion at the end of loan guarantee programs allow certain targeted February, almost three times its level in 1960. activities to be financed under more favorable This enormous expansion of debt has serious terms than would otherwise be possible. The consequences for economic performance. Feder­ provision of such credit assistance to achieve al borrowing absorbs scarce private savings and particular social and economic objectives cer­ intensifies pressures in financial markets. When tainly is a legitimate activity of the federal gov­ productive resources are being pressed by strong ernment. It must be kept in mind, however, that demands for goods and services and overall cred­ the supply of credit is limited and that govern­ it supplies are tight, the government preempts ment assistance to particular sectors may make it the loanable funds that would otherwise be avail­ more difficult for other groups to obtain credit to able to finance private capital formation. finance worthwhile and productive investment. The adverse consequences of reduced private I am increasingly concerned that such govern­ capital formation are difficult to exaggerate, giv­ ment financing activity is not under effective con­ en the fundamental importance of investment in trol. Over the past 10 years, federally guaranteed determining the pace of productivity growth. loans have somewhat more than doubled. Yet, at While the economics profession has yet to arrive present, there is no comprehensive framework at a fully satisfactory explanation of the sub­ for evaluating these activities. Only a small por­ stantial slowing in productivity growth in the tion of this credit activity is ever considered in 1970s, there is no doubt that one important ele­ the congressional deliberations on the budget. ment was the falloff in the expansion of capital Loan guarantees do not involve the expenditure stock at a time when growth of the labor force of funds and consequently are not reflected in the was accelerating. Increases in output per hour unified budget, except to the extent that appro­ worked are the basis of a rising standard of liv­ priations are required to cover the cost of de­ ing. When productivity lags and the economy faulted loans. grows more slowly, aspirations for higher living In sum, there are serious shortcomings in the standards are frustrated. Competition for shares current process of reviewing federal financing ac­ of real income and inflationary pressures are ag­ tivity. I would wish, therefore, to reiterate the gravated. In short, persistent deficits and in­ position of the Board, expressed in recent testi­ creases in government debt tend to inhibit capital mony by my colleague Governor Teeters that a formation and productivity growth, further con­ federal credit control budget should be estab­ tributing to the wage-price spiral. lished along the lines suggested by the adminis­ The potential for federal financial activity to tration, or preferably, more comprehensively. displace other borrowers extends well beyond It also seems to me that the issue of the debt the growth of debt associated with persistent ceiling should be more closely linked to the bud­ budget deficits. Outlays of off-budget agencies getary review process. The statutory limit on have grown to be very sizable in recent years. federal debt is not reasonably a separate device Such outlays were just under $12V2 billion in for controlling the budget. The determination of 1979 and are expected to be $15 billion in 1980. the budget and the debt ceiling are more logically Off-budget outlays largely take the form of direct a simultaneous process. The present system car­ government loans and are financed by the Feder­ ries with it the potential for contradictory actions al Financing Bank (FFB). Ultimately, however, on the part of the Congress. Indeed, twice in the the FFB obtains its funds from the Treasury, and last two years, the authority of the government thus the deficits incurred by off-budget agencies to borrow expired briefly, causing the post­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 309 ponement of Treasury security auctions, delays sentially, I am seconding the Treasury’s rec­ in the mailing of federal checks, and the threat of ommendation that such resolutions be given the default on federal checks already in the mail. force of law. Lengthier delays in extending the debt limit I am, indeed, somewhat encouraged by the could have produced much more serious con­ strides that have already been made in gaining sequences, including ultimately a default on ma­ better control over the budgetary process. There turing government securities. seems to be a genuine opportunity to balance the To minimize the possibility of such problems, I budget in the coming fiscal year. We can do bet­ strongly recommend that the Congress consider ter. For one thing, we should bring federal fi­ setting the debt ceiling in the process of approv­ nancing activities under better control. More ing the budget. At present the Congress already generally, we must demonstrate a commitment must pass resolutions setting recommended lev­ to reduce inflation by consistently striving for els for the debt when it votes on the budget. Es­ budgetary discipline in the years ahead. □ Statement by Frederick H. Schultz, Vice Chair­ clear—namely, that the long-run consequences man, Board of Governors of the Federal Reserve of allowing inflationary pressures to get out of System, before the Subcommittee on Access to hand are likely to be far worse than the short-run Equity Capital and Business Opportunities of the costs of actions to contain these pressures. Committee on Small Business, U.S. House of The policy procedures adopted in October, Representatives, April 2, 1980. and the accompanying rise in market interest rates, led to a marked slowing in the growth of I am pleased to appear before you once again to money and credit in the fourth quarter of last discuss the impact on small business of the Fed­ year. Since the beginning of this year, however, eral Reserve’s efforts to fight inflation. I wel­ there has been a resurgence in credit demands, come, in particular, the opportunity to discuss especially on the part of business firms. Bank the program of credit restraint announced on loans and commercial paper have expanded rap­ March 14. idly. Moreover, it has become clear that the fi­ When I last appeared before this committee in nancial markets, and the general public, remain October, the Federal Reserve had just under­ concerned about the ability and commitment of taken a number of actions designed to slow the the government and the monetary authorities to growth in money and credit. The October 6 pol­ contain inflation. icy changes were adopted in response to contin­ No doubt inflationary expectations have been ued rapid expansion of money and credit and an reinforced by the recent surge in the major price apparent worsening of inflation and inflationary indexes—even though these increases were in expectations. These conditions had made them­ large part the predictable result of the spurt in oil selves felt most prominently in the markets for prices by the Organization of Petroleum Export­ gold and for some other commodities, in which ing Countries in the latter months of 1979 and of speculative activity was reaching alarming pro­ higher mortgage rates that are an unavoidable portions. consequence of anti-inflationary monetary pol­ As I indicated at that time, it was essential that icy. Expectations also have been heightened by the Federal Reserve take strong action to re­ the continuation of strength in economic activi­ strain money and credit growth in order to pre­ ty—in particular by the failure of the long-exvent a further serious acceleration of inflation pected recession to materialize—and by the and to make a start on winding it down. Only in possibility that an acceleration in our defense ex­ this way could we work toward a more stable fi­ penditures would enlarge the federal deficit. nancial environment for economic activity over The most dramatic manifestation of the rein­ the long run. The lesson of recent years is quite forcement of expectations has been the unprece­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 Federal Reserve Bulletin □ April 1980 dented runup in yields on long-term bonds—a ditional acquisitions of borrowed funds by the movement that has erased hundreds of billions of banks. Banks thus will be faced with the task of dollars of market values. Spending patterns also allocating a more costly and slower-growing vol­ have been affected. The household saving rate ume of credit among alternative uses. Business­ in the fourth quarter reached its lowest point es—both large and small—will find that bank since the Korean war, and retail sales were loans are more costly and less readily available. strong early this year, suggesting that the psy­ Some borrowers will determine that they cannot chology of “buy in advance” was still in oper­ afford to pay higher rates charged on loans, and a ation. greater portion of credit demands will not be It was against this background that a monetary met. and credit program was announced on March 14 A reduction in the availability of bank loans is, as part of a government-wide effort to stem infla­ of course, a more serious matter for some bor­ tion. The program is intended to strengthen the rowers than for others. Limited access to alter­ effectiveness of the October measures and to native sources of funds makes small enterprises reaffirm our commitment to bring inflation under very dependent on commercial banks for credit. control. The thrust of the program, as it pertains This dependency may be even greater during a to businesses, has several aspects. First we are period such as now, when cash flows may be seeking to slow the overall growth in credit. A weakening and suppliers are probably less will­ key element in this regard is the imposition of ing or able to expand trade credit. restraint on certain types of consumer credit, in­ Following the Federal Reserve’s actions in Oc­ cluding credit cards and check overdraft plans. tober, Chairman Volcker sent a letter to member In addition, several specific actions have been banks urging them to give particular care to ac­ taken that apply directly to bank credit growth. commodating the needs of small businesses and These actions include a tightening of the margin­ other borrowers that rely primarily on banks for al reserve requirement on managed liabilities of credit. The Special Credit Restraint Program ex­ large member banks that was initiated on Octo­ plicitly incorporates our concerns in this area. ber 6 and a special deposit requirement on in­ The program states that a primary responsibility creases in the managed liabilities of large of banks during the coming adjustment period nonmember banks, as well as the establishment will be to “meet the basic needs of established of a surcharge on repeated borrowings by large customers for normal operations, particularly banks at the discount window. smaller businesses, farmers, thrift institution The March 14 actions also initiated a Special bank customers, and agriculturally oriented cor­ Credit Restraint Program. Under this program, respondent banks and homebuyers with limited banks are expected to limit loan growth this year alternative sources of funds.” Moreover, the to 6 to 9 percent, a range consistent with an­ Board expects that, in setting interest rates and nounced targets for growth in money and credit other lending terms, banks will, whenever pos­ reported to the Congress on February 19. sible, take account of the special needs of these Through the Special Credit Restraint Program, borrowers. At the same time, institutions are guidelines have been set forth for borrowers and asked to avoid extensions of credit for specula­ lenders to assure that funds are available to meet tive or nonproductive purposes, or for purposes certain priority needs. These guidelines are de­ that may be financed from other sources. Thus, signed to moderate the uneven impacts that re­ within the overall range of the loan growth target duced credit availability may impose on of 6 to 9 percent, banks are encouraged to chan­ particular sectors of the economy, such as small nel funds to groups likely to use them for produc­ businesses and agriculture. The program also tive purposes and to those that have limited covers business borrowing from finance com­ alternative sources. panies and in the commercial paper market. The Federal Reserve has not attempted as part The increased marginal reserve requirements of this program to specify the portion of credit on managed liabilities and the surcharge on dis­ that banks should allocate to specific borrowing count borrowing further increase the cost of ad­ groups nor to establish numerical guidelines for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 311 the relative terms of lending. We feel that indi­ breaking the inflationary grip on our economy vidual institutions are much better able to assess will not be a painless one. But only by obtaining the needs of particular customers and their own some degree of price stability can we create an ability to service those needs. I have little doubt environment in which small businesses can pros­ that most lending institutions will make a con­ per. Once the inflationary spiral is broken, we certed effort to meet, as best they can, the legiti­ may expect to see interest rates move down, mate needs of their regular customers. with particular benefit to small businesses. In­ The Federal Reserve plans to follow closely deed the procedures adopted by the Federal Re­ developments in all sectors of the credit market, serve in October promise, once demands for seeking to spot distortions that may emerge in money and credit ease, a more prompt decline in credit flows. As part of this monitoring, we are rates than in the past. Without a reduction in in­ requiring monthly or quarterly reports from se­ flationary expectations, however, we have no lected banks that detail, among other things, the hope of lowering interest rates over the longer nature of their lending programs and the volume term. Such a reduction can only occur when of credit flows to particular groups, especially businessmen and consumers become convinced small businesses. We are asking what steps have that all branches of government have truly recog­ been taken to implement the guidelines and for nized inflation as our “number one problem” explanations when lending patterns appear to vi­ and have taken the necessary—often painful— olate them. Similar information will be sought steps to deal with it. I believe that, with time, from finance companies. Large businesses are on successful implementation of the March 14 pro­ notice that they should not turn to the com­ gram by the Federal Reserve, along with fiscal mercial paper market to replace other credit, as restraint exercised by the Congress and the ad­ such a shift would reduce the residual credit ministration will have this effect. We will emerge available for other borrowers. on the other side of these troubles a stronger na­ Let me reiterate, however, that these mea­ tion, with heightened dedication to the provision sures cannot prevent small, and indeed all, busi­ of a stable economic environment in which all nesses from encountering strains in coming sectors of our economy have the opportunity to months. As I stated in October, the process of flourish. □ Statement by Henry C. Wallich, Member, Board eral years. This growth, however, has reflected of Governors of the Federal Reserve System, in good part the depreciation of the dollar and the submitted to the Subcommittee on International improved competitive position of the United Finance of the Committee on Banking, Housing, States that has resulted, as well as the benefits and Urban Affairs, U.S. Senate, April 3, 1980. from the expansion of economic activity abroad. Over the past two years exports have increased I am pleased to submit a statement on S. 2379, a 50 percent in value and 20 percent in volume, bill that is designed to facilitate the formation and with strong performances in both agricultural operation of export trading companies. My state­ and manufactured goods. We should expect that ment on behalf of the Board of Governors is lim­ growth in our exports will depend in part on ited to the section of the bill that provides for growth in the main markets in which we sell. bank investment in trading companies. Thus, as economic activity slows abroad, we The Board strongly supports the view that the should expect growth in our export sales to slow Unted States needs a strong export sector, and I also, although we still look for some increase in have been concerned that exports are sometimes exports of manufactures this year. Further hampered by government regulations. It is note­ growth in exports and a narrowing of the U.S. worthy that, under such handicaps, U.S. exports trade deficit in the years ahead will depend on have nevertheless grown rapidly in the past sev­ our ability to bring inflation under control and to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 Federal Reserve Bulletin □ April 1980 establish an environment favorable to growth of wide variety of services relating to exports. In productivity and the international flows of goods addition to a full range of financing services, and services. these include foreign exchange facilities, infor­ Among the measures already taken to mation on foreign markets and economies, in­ strengthen U.S. exports are certain actions by troductions, business references, and advice on the Federal Reserve to increase the capabilities arranging shipments. A number of U.S. banks of Edge corporations to provide international with sizable networks of international banking banking services. I recently reviewed these mea­ and financial facilities have substantial expertise sures before this subcommittee. These changes in these areas. Moreover, these advisory and an­ in rules for Edge corporations were in response cillary services are a useful adjunct to inter­ to the congressional mandate in the International national financing, which is the principal Banking Act and were designed to help the fi­ business of many banks and Edge corporations. nancing of exports. One change expanded the Edge corporations have wide latitude under the powers of Edge corporations by permitting them law to provide advisory services related to ex­ to finance the production of goods for export. A porting. In addition, in the case of uncertainty second change permitted Edge corporations to about the permissibility of certain activities, establish domestic branches, thereby increasing Edge corporations may apply under the Board’s the possibilities for international banking serv­ procedures for permission to broaden the scope ices to expand into new areas. In the nine months of the export-related services that they offer. No since this change in Board regulation, the Board requests of this sort have yet been received. The has approved applications for branches of Edge Board would of course review any such appli­ corporations in eleven cities, including five cities cations carefully in the light of all the surround­ in which no Edge corporations have previously ing circumstances. operated. A number of other applications for Extension of the investment powers of bank­ Edge corporations are anticipated over the next ing institutions to include companies that buy few months. and sell goods and services for their own account The concrete benefits of these actions in ex­ would go far beyond these existing financial facil­ panding international banking services, and in ities. Such an extension would raise basic ques­ particular in facilitating the financing of U.S. ex­ tions regarding the traditional separation of ports, will, of course, be observed only gradu­ banking and commerce. This tradition, which ally. But we believe that they may be significant stands in sharp contrast to the practice in some over the longer run. countries abroad, helps ensure that banks will re­ The bill before this committee seeks to main impartial arbiters of credit and contribute to strengthen U.S. exports by facilitating the estab­ a healthy competitive environment in the com­ lishment of export trading companies that could mercial sector. supply and package a range of services necessary The separation of banking and commerce has a for exporting, and that could also engage directly long tradition in American banking. It is em­ in selling goods for export. It would enlist the bodied in the Bank Holding Company Act and is support of U.S. banks for both types of activities endorsed by the Board. That tradition has served by permitting banks and Edge corporations to in­ this nation well in promoting economic com­ vest in export trading companies. In this con­ petition and a strong banking system. In addi­ nection it might be noted that, although banks tion, the Board has several more specific and Edge corporations cannot now invest in such concerns about a breaching of the separation of trading companies, bank holding companies are banking and commerce, as is proposed in S. permitted to hold up to 5 percent of the stock of 2379, including the following. nonbanking companies as passive investments. 1. The possibility that bank-owned companies The Board shares the view that banks have ex­ or manufacturing companies dealing with them pertise in some of the areas noted in the bill. U.S. will have more favorable access to bank credit banks can now provide, either directly or than other companies. For example, the associ­ through their Edge corporations and affiliates, a ated company might well receive more liberal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 313 credit terms such as lower interest rates, longer which worthwhile economic and social objec­ maturities, and less stringent collateral require­ tives are being threatened by the need to econo­ ments. Moreover, as between otherwise equal mize. Taken alone, each of these objectives potential borrowers, the bank might well make might be worthwhile, but in aggregate they could credit available to an associated company but not represent a substantial claim on bank capital. to others. Thus, there is a potential for unfair We need to remember that bank capital is low competition among trading companies. already—about $90 billion for all banks relative 2. The exposure of the bank that arises from to total liabilities of $1.5 trillion. Capital ratios risks encountered in commercial trading and the have been declining over the years, in part as a holding of inventories. This risk is enhanced result of inflation, and there is now little room in when high leveraging is involved as is typically bank balance sheets for new generic risks. If we the case with trading companies. Margins for er­ now encourage banks to divert capital from its ror are small in circumstances when the nature of traditional role as a support for lending activity the business necessarily contains the potential and to invest it in nonbanking activities, we are for sizable price movements and marked shifts in necessarily curtailing the amount of lending that demands for products. In the case of Japanese banks can do for other purposes. Bank capital banks associated with Japanese trading com­ can be invested most productively in supporting panies, large losses were sustained in one in­ banking activity. stance when a trading company failed, and Edge corporations, banks, and bank holding difficulties have been encountered by others. companies may currently engage in some of the 3. The possibility of conflicts of interest in the activities offered by trading companies. More­ exercise of its credit judgment between the over, the Board has established procedures un­ bank’s fiduciary responsibility to depositors and der the recently revised Regulation K by which its ownership interests. Examples of such classic member banks, bank holding companies, and conflicts are legion, the more obvious ones oc­ Edge corporations can apply to engage in new curring when bank management runs undue risks international activities, and the Board is com­ in extending credit to such an associated compa­ mitted to processing applications in an expedi­ ny in the hopes that the company will be success­ tious manner. Banks are, of course, not ful and provide a handsome return to share­ permitted to engage in “buying or selling goods, holders and therefore management; or when it wares, merchandise, or commodities in the continues to extend credit to an associated com­ United States,” and the Board has supported pany in distress rather than to cut its losses. this limitation on bank activity. 4. The increased complexity of bank super­ If the activities of Edge corporations and vision. For bank supervisors, as for bank man­ banks were to be extended to permit the buying agement, there are very substantial differences and selling of goods for export directly—or if a between supervising banking and financial activi­ bank holding company were permitted to own ties and supervising commercial enterprises, more than 5 percent of the shares of an export which involve risks that must be evaluated and trading company—the Board believes that spe­ controlled on the basis of specialized knowledge cial standards for participation in such activity and expertise. would be needed. Such standards should include The Board is concerned about this legislation limitations on the share of ownership of export also because of the precedent that would be es­ trading companies and on the types of activities tablished. In today’s environment, with rising in which they engage. Our staff would be avail­ prices for energy and the need for painful cuts in able to work with the staff of the subcommittee in many areas of the economy, pressures might well seeking standards that would meet the objectives arise for banks to make investments in areas in of the bill while retaining appropriate safeguards. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 Announcements Monetary and Credit Actions count window and to speed bank adjustments in response to restraint on bank reserves. A sur­ The Federal Reserve Board announced on charge of 3 percentage points applies to borrow­ March 14, 1980, the following monetary and ings by banks with deposits of $500 million or credit actions as part of a general government more for more than one week in a row or more program to help curb inflationary pressures. than four weeks in any calendar quarter. The 1. A voluntary special credit restraint program basic discount rate remains at 13 percent. that will apply to all domestic commercial banks, In making the announcement, the Board stated bank holding companies, business credit extend­ the following: ed by finance companies, and credit extended to President Carter has announced a broad program of U.S. residents by the U.S. agencies and fiscal, energy, credit, and other measures designed to branches of foreign banks. The parents and affili­ moderate and reduce inflationary forces in a manner ates of those foreign banks are urged to cooper­ that can also lay the groundwork for a return to stable ate in similarly restricting their lending to U.S. economic growth. companies. Special effort will be made to main­ Consistent with that objective and with the contin­ uing intent of the Federal Reserve to restrain growth in tain credit for farmers and small businessmen. money and credit during 1980, the Federal Reserve has 2. A program of restraint on certain types of at the same time taken certain further actions to rein­ consumer credit, including credit cards, check force the effectiveness of the measures announced in credit overdraft plans, unsecured personal loans, October of 1979. These actions include an increase in and secured credit when the proceeds are not the marginal reserve requirements on managed liabili­ ties established on October 6 and a surcharge for large used to finance the collateral. The Board has es­ banks on borrowings through the Federal Reserve dis­ tablished a special deposit requirement of 15 per­ count window. cent for all lenders on increases in covered types The President has also provided the Federal Re­ of credit. Automobile credit, credit specifically serve, under the terms of the Credit Control Act of used to finance the purchase of household goods 1969, with authority to exercise particular restraint on the growth of certain types of consumer credit extend­ such as furniture and appliances, home improve­ ed by banks and others. That restraint will be achieved ment loans, and mortgage credit are not covered through the imposition of a requirement for special de­ by the program. posits equivalent to 15 percent of any expansion of 3. An increase from 8 percent to 10 percent credit provided by credit cards, other forms of unse­ in the marginal reserve requirement on the man­ cured revolving credit, and personal loans. One consequence of strong demands for money and aged liabilities of large banks that was first im­ credit generated in part by inflationary forces and ex­ posed last October 6, and a reduction in the base pectations has been to bring heavy pressure on credit upon which the reserve requirement is calcu­ and financial markets generally, with varying impacts lated. on particular sectors of the economy. At the same 4. Restraint on the amount of credit raised by time, restraint on growth in money and credit must be a fundamental part of the process of restoring stability. large nonmember banks by establishing a special That restraint is, and will continue to be, based pri­ deposit requirement of 10 percent on increases in marily on control of bank reserves and other tradition­ their managed liabilities. al instruments of monetary policy. However, the Fed­ 5. Restraint on the rapid expansion of money eral Reserve Board also believes the effectiveness and market mutual funds by establishing a special de­ speed with which appropriate restraint can be achieved without disruptive effects on credit markets posit requirement of 15 percent on increases in will be facilitated by a more formal program of volun­ their total assets above the level of March 14. tary restraint by important financial intermediaries, 6. A surcharge on discount borrowings by developing further the general criteria set forth in ear­ large banks to discourage frequent use of the dis­ lier communications to member banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

315 Special Credit Restraint Program the cost of relatively small amounts of marginal funds subject to the marginal reserve require­ In adopting this program, the Board said that in­ ment on managed liabilities. The Board also ex­ creases in lending this year should generally be pects that banks, as appropriate and possible, consistent with the announced growth ranges for will adjust lending rates and other terms to take money and credit reported to the Congress on account of the special needs of small businesses February 19. Although growth trends will vary and others. among banks and regions of the country, growth Lenders covered by the program are asked to in bank loans generally should not exceed the supply certain data and information. The Presi­ upper part of the range of 6 to 9 percent indicated dent, in activating the Credit Control Act, has for bank credit (that is, loans and investments). provided the authority to require such reports. Banks whose past lending patterns suggest Monthly reports are requested from domestic relatively slow growth should expect to confine banks with assets in excess of $1 billion and for their growth to the lower portion of, or even branches and agencies of foreign banks that have below, the range for bank credit. worldwide assets in excess of $1 billion. Monthly The Board said the commercial paper market reports are also requested on the business credit and finance companies—both a growing source activities of domestic affiliates of bank holding of business credit—will be monitored closely in companies with total assets in excess of $1 bil­ the program. Since activity in the commercial pa­ lion. Banks with assets between $300 million and per market is normally covered by bank credit $1 billion are asked to report quarterly. Smaller lines, banks are expected to avoid increases in institutions need not report unless subsequent commitments for credit lines to support such developments warrant it. borrowing out of keeping with normal business Foreign banks will be asked to respect the sub­ needs. Thrift institutions and credit unions will stance and spirit of the guidelines in their loans to not be covered by the special program in light of U.S. borrowers or loans to support U.S. activity. the reduced trend in their asset growth. A panel of large corporations will be asked to No numerical guidelines for particular types of report monthly on their commercial paper issues credit are planned but banks are encouraged par­ and their borrowings abroad. Finance companies ticularly to take the following actions: with more than $1 billion in business loans out­ 1. Restrain unsecured lending to consumers, standing will also be asked to report monthly on including credit cards and other revolving cred­ their business credit outstanding. its. Credit for automobiles, home mortgage, and home improvement loans should be treated nor­ mally in the light of general market conditions. Consumer Credit Restraint 2. Discourage financing of corporate take­ overs or mergers and the retirement of corporate The special deposit requirement of 15 percent on stock, except in those limited instances in which increases in some types of consumer credit is de­ there is a clear justification in terms of produc­ signed to encourage particular restraint on such tion or economic efficiency commensurate with credit extensions. Methods used by lenders to the size of the loan. achieve such restraint are a matter for determina­ 3. Avoid financing for purely speculative hold­ tion by the individual firms. Increases in covered ings of commodities or precious metals or ex­ credit above the base date—March 14—will be traordinary inventory accumulation. subject to the special deposit requirement. 4. Maintain availability of funds to small busi­ Among lenders subject to the regulation are ness, farmers, homebuyers, and others without commercial banks, finance companies, credit access to other forms of financing. unions, savings and loan associations, mutual 5. Restrain the growth in commitments for savings banks, retail establishments, gasoline backup lines in support of commercial paper. companies, and travel and entertainment card No specific guidelines will be issued on the companies—in all instances when there is $2 mil­ terms and pricing of bank loans. However, rates lion or more in covered credit. should not be calculated in a manner that reflects Typical examples of credit that is covered are Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 Federal Reserve Bulletin □ April 1980 credit cards issued by financial institutions, re­ are applied, or increase the required minimum tailers, and oil companies; overdraft and special periodic payment. check-type credit plans; unsecured personal The above changes can be made only if written loans; loans for which the collateral is already notice of a change is provided to all affected ac­ owned by the borrower; open-account and 30- count holders at least 30 days before the effective day credit without regard to whether a finance date of the change, and if the account holders are charge is imposed; and credit secured by financial given the option to pay off their outstanding debt assets when the collateral is not purchased with in accord with the original terms of their con­ the proceeds of the loan. tract. Examples of consumer credit that is not cov­ If an account holder continued to use a credit ered are as follows: secured credit when the card after the effective date of the specified security is purchased with the proceeds of the changes, he or she would be subject to the new loan such as automobiles, mobile homes, furni­ terms on all outstanding credit. ture, or appliances; mortgage loans when the pro­ This change does not affect state laws govern­ ceeds are used to purchase the home or for home ing consumer credit rate ceilings, other Truth in improvements; insurance company policy loans; Lending disclosures, or rules under the Equal credit extended for utilities, health, or education­ Credit Opportunity Act. al services; credit extended under state or federal Creditors who have begun mailing notices of government-guaranteed loan programs; and sav­ changes to their account holders before March 14 ings passbook loans. may implement such changes without regard to All creditors with $2 million or more of cov­ the new notice procedures. ered credit outstanding on March 14 must file a 2. Provided creditors subject to the consumer base report by April 1 directly with the Federal credit restraint program with an alternative base Reserve or through the Federal Home Loan period for calculation of the special deposit re­ Bank Board or the Federal Credit Union Admin­ quirement of 15 percent. This alternative base is istration. This report will state the amount of designed to prevent an undue burden for credi­ credit outstanding on March 14 or a figure for the tors who face large seasonal increases in their nearest available date. business in the months ahead. Thereafter, these creditors must file a monthly The choice of a base period will be either the report on the amount of covered consumer credit original base of March 14, 1980, or the following outstanding during the month, based on the daily option, which gradually reduces year-over-year average amount of covered credit if such data are increases in outstanding credit that are possible available, or the amount outstanding on other ap­ without incurring special deposit requirements: propriate dates approved by the Federal Re­ The base for any given month will equal the out­ serve. The first report—for the period from standing covered credit for the same month a March 15 through April 30—is due by May 12. year earlier, scaled up by a gradually diminishing The report for subsequent months is due by the factor based on the expansion of a firm’s covered second Monday of the following month. credit from March 1979 to March 1980. The The first 15 percent deposit requirement must growth factor will be reduced by V12 each month be maintained beginning May 22 on increases in so that by March 1981, any year-over-year in­ outstanding credit. crease in covered credit will be subject to the special deposit requirement, which applies to Subsequently, on April 2, 1980, the Board any growth of covered credit over the base level. made the following amendments to its con­ For example, if a firm experienced growth in sumer credit restraint regulations announced covered credit of 6 percent between March 1979 on March 14. and March 1980, under the alternative method its 1. Established a uniform, national rule for April 1980 base would equal the April 1979 level creditors to follow if they impose or increase any of covered credit, scaled up by n/i2 of 6 percent. finance or other charges, change the method of For May, its base would equal the May 1979 lev­ computing the balance upon which the charges el, scaled up by 10112 of 6 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 317 In a related action, the Board said it would at­ of less than a year, Eurodollar borrowings, re­ tempt, whenever possible in further rulemaking purchase agreements against U.S. government under the Credit Control Act of 1969, to give no­ and federal agency securities, and federal funds tice and opportunity for public comment before borrowed from a nonmember institution. making a final decision. However, the Board On March 14, the Board increased the reserve cannot commit itself to doing so in all cases, requirement to 10 percent and lowered the base since (as in the case of the rules issued March 14) either by 7 percent or by the decrease in a bank’s such advance notice would result in frustration gross loans to foreigners and gross balances due of the anti-inflationary objective of restraining from foreign offices of other institutions between credit increases by giving opportunity for credit the base period and the week ending March 12, to increase before new credit-restraining rules whichever is greater. In addition, the base will be become effective. reduced to the extent a bank’s foreign loans con­ The Board acted in response to a petition from tinue to decline. The minimum base remains $100 the Consumer Federation of America. million. In making the decision the Board stated the following: Nonmember Banks The Board recognizes the contribution to the decisionmaking process that public participation provides, and has in the past encouraged broad participation in its The special deposit requirement for nonmember rulemaking proceedings, particularly in the consumer banks is designed to restrain credit expansion in and equal credit area. . . . The Board will attempt to the same manner as the marginal reserve require­ provide an opportunity for public comment whenever ment on the managed liabilities of member this is possible and would not frustrate the Board’s in­ banks. tended actions. Finally, the Board intends that its reg­ ulations (under the Credit Control Act) be implement­ For nonmembers, the base is the daily average ed in as fair and equitable manner as possible. amount of managed liabilities outstanding during the two-week period that ended March 12 or $100 The Board indicated that—as it has done in the million, whichever is greater. The 10 percent past with respect to other regulations—when op­ special deposit will be maintained at the Federal portunity for prior public comment is not practi­ Reserve on increases in managed liabilities cable, it will consider public comment on its ac­ above the base amount. The base will be reduced tions received after its rules are issued, and will in subsequent periods to the extent that a non­ stand ready to amend the rules if necessary. member bank reduces its foreign loans. Marginal Reserve Requirement Money Market Mutual Funds On October 6, the Board established an 8 percent marginal reserve requirement on increases in Money market mutual funds and similar credi­ managed liabilities that had been actively used to tors must maintain a special deposit with the finance a rapid expansion in bank credit. The Federal Reserve equal to 15 percent of the in­ base for this reserve requirement was set at the crease in their total assets after March 14. larger of $100 million or the average amount of A covered fund must file by April 1 a base re­ managed liabilities held by a member bank, an port of its outstanding assets as of March 14. Edge corporation, or a family of U.S. agencies Thereafter, a monthly report on the daily average and branches of a foreign bank as of the period amount of its assets must be filed by the 21st of September 13-26. An increase in managed liabili­ the month. For example, a report on the first ties above that base period was subject to the month’s assets—from March 15 to April 14additional 8 percent reserve requirement. must be filed by April 21 and the special deposit Managed liabilities include large-denomination requirement will be maintained beginning May 1. time deposits ($100,000 or more) with maturities A fund that registers as an investment company Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 Federal Reserve Bulletin □ April 1980 with the Securities and Exchange Commission The surcharge above the basic discount rate after March 14 must file a base report within two would generally be related to market interest weeks after it begins operations. rates. It is designed to discourage frequent use of the discount window and to encourage banks Subsequently, on March 28, 1980, the Federal with access to money markets to adjust their Reserve Board announced a series of changes in loans and investments more promptly to chang­ its credit restraint program concerning money mar­ ing market conditions. This should facilitate the ket funds and other similar entities, as follows: ability of the Federal Reserve to attain longer- 1. Extend the exemption for bank-operated run bank credit and money supply objectives. collective investment funds to bona fide personal The surcharge will apply to banks with more trusts, pension, retirement, and other tax-ex­ than $500 million in deposits on their borrowings empt accounts invested in money market funds. for ordinary adjustment credit, when such bor­ 2. Allow the unit investment trusts of a partic­ rowing occurs successively in two statement ular sponsor to roll over without incurring the 15 weeks or more, or when the borrowing occurs in percent special deposit requirement as long as more than four weeks in a calendar quarter. the units are sold only to the unit holders of rec­ There will be no other change in the administra­ ord on the date the trust matures, the sales tion of the discount window with respect to ad­ charge is not substantially increased, and a unit justment credit. Such credit will continue to be holder cannot subscribe to more units than was available to member banks only on a short-term held in the maturing trust. basis to assist them in meeting a temporary re­ 3. Exempt the tax-exempt assets of money quirement for funds or to provide a cushion while market funds whose investment objective is to orderly adjustments are made in response to invest at least 80 percent of their assets in short­ more sustained changes in a bank’s position. term tax-exempt obligations. These funds typi­ The surcharge will not apply to borrowing un­ cally provide a yield substantially below those of der the seasonal loan program, which will contin­ other funds as well as a convenient vehicle for ue at the basic discount rate, nor to borrowing investors who otherwise would invest directly in under the emergency loan program. such tax-exempt obligations. The remaining non­ exempt assets of such funds would be subject to the special deposit requirement to the extent International Banking Act: they exceed the fund’s base. Amended Regulations 4. Provide a minimum base for funds that were engaged in a continuous public offering on The Federal Reserve Board on March 20, 1980, March 14, 1980. adopted final regulations to implement certain In addition, the Board changed the reporting provisions of the International Banking Act (IBA) and maintenance periods for money market of 1978. funds to a weekly basis and denied requests for Pursuant to the act the Board’s regulations certain exemptions from the regulation. placed reserve requirements and interest rate limitations on U.S. branches and agencies of for­ eign banks whose parent banks have total world­ Discount Rate wide consolidated bank assets in excess of $1 bil­ lion. In fixing the surcharge above the basic discount At the same time, the Board implemented pro­ rate for large bank borrowing, the Board acted visions of the IBA that grant branches and on requests from the directors of all 12 Federal agencies of such foreign banks access to Federal Reserve Banks. The action was effective March Reserve services, and permit them to borrow 17, 1980. The discount rate is the interest rate from the Federal Reserve Banks. that member banks are charged when they bor­ The regulations will become effective on Sep­ row from their district Federal Reserve Bank. tember 4, 1980, with a two-year phase-in period Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 319 after the effective date for reserve require­ 7. Apply all the provisions of Regulation Q to ments—consistent with the reserve requirement the branches and agencies. phase-in for nonmember banks joining the Feder­ al Reserve System. The final regulations follow consideration of comments received on proposed regulations published in July 1979. STATEMENT ON DEPOSITARY INSTITUTIONS The rules affecting reserve requirements for Deregulation and Monetary branches and agencies of foreign banks amend Control Act of 1980 the Board’s Regulation D (Reserves of Member Banks). The provisions imposing interest rate The Federal Reserve Board issued the following ceilings amend Regulation Q (Interest on Depos­ statement in connection with the signing of the its). The Board also amended Regulation D and Depositary Institutions Deregulation and Mone­ Regulation K (International Banking Operations) tary Control Act of 1980 by the President on to conform, in certain respects, the reserve re­ March 31, 1980. quirements of Edge and Agreement corporations The Depositary Institutions Deregulation and to those applicable to the branches and agencies Monetary Control Act of 1980 initiates wideof foreign banks. ranging changes in the nation’s monetary system In general, but with numerous special provi­ that will enhance the efficiency of financial mar­ sions, the Board’s regulations specify the follow­ kets, promote competitive balance among depos­ ing procedures: itary institutions, and facilitate the implementa­ 1. Apply all the provisions of Regulation D to tion of monetary policy. U.S. branches and agencies of foreign banks. With regard to monetary policy instruments, 2. Treat credit balances at banking offices of the provisions of the act that extend reserve re­ foreign banks as deposits subject to the same in­ quirements on transaction accounts and non­ terest rate limitations and to the same reserve re­ personal time deposits to all depositary institu­ quirements as apply to member banks, with the tions become effective in six months. The applicable reserve ratio determined by the matu­ provision that extends access to Federal Reserve rity of the balance. Bank discount windows on the same terms and 3. Subject net borrowings of the agencies and conditions as member banks to all depositary in­ branches from their foreign bank and its foreign stitutions that hold transaction accounts or non­ offices to the same reserve ratios that apply to personal time deposits becomes effective on similar Eurodollar borrowings of member banks, enactment. after deducting a capital equivalency allowance. Prompt implementation of the discount win­ 4. Establish a system of statewide aggregation dow provisions—which affect many thousands of of reservable liabilities for purposes of comput­ additional depositary institutions—involves de­ ing reserve requirements. This differs from the velopment of the necessary procedures and regu­ proposed rule, which would have included an ad­ lations within the Federal Reserve System, coor­ ditional tier of national aggregation. dination with other agencies that have 5. Permit a branch or agency that maintains a supervisory and other responsibilities for the in­ required reserve balance with a Reserve Bank to stitutions, and dissemination of information be eligible to borrow at the discount window of about the terms and conditions on which various that Bank. types of discount window credit may be available 6. Make Federal Reserve services (including to the depositary institutions concerned. Ar­ check collection, currency and coin supply, rangements to regularize access to the discount securities safekeeping, and wire transfer serv­ window are expected to be fully implemented by ices) available to the branches and agencies on July 1. the effective date of the final regulations, through For the interim, the Board recognizes that some the Reserve Bank for the District in which the depositary institutions covered by the new law foreign branch or agency is located. may experience unusual funding needs that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 Federal Reserve Bulletin □ April 1980 might reasonably require access to the discount tions: total assets of approximately $150 million window. During this period before general ar­ or less and no significant nonbank activities that rangements can be regularized, the Federal Re­ use large amounts of debt in their businesses. serve, in consultation with the primary supervi­ It permits acquisition by one-bank holding sory agencies concerned, will be prepared to companies of small community banks under re­ consider credit arrangements on a case-by-case vised terms. The new terms continue in more basis. flexible form the Board’s standing policy of per­ mitting transfer of ownership of such banks on less demanding terms than those the Board ap­ Interest Rate Limitations plies in considering applications involving larger on Certain Obligations banks. The Board gave this background to its pro­ The Federal Reserve Board on March 14, 1980, posal: imposed interest rate limitations on debt in­ struments that are issued by a bank holding com­ In acting on applications filed under the Bank Hold­ ing Company Act, the Board has adopted, and contin­ pany in denominations of $100,000 or less and ues to follow, the principle that bank holding com­ with original maturities of four years or less. panies should serve as a source of strength for their Obligations of $10,000 or more with original subsidiary banks. . . . maturities between 6 months and 2lh years— The Board believes that a high level of debt at the or redeemable in periods of 6 months to parent holding company level impairs the ability of a bank holding company to provide financial assistance 2V2 years—will be subject to the same interest to subsidiary bank(s), and in some cases the servicing rate ceilings paid by member banks on 26-week requirements on such debt may be a significant drain money market certificates. on the bank’s resources. For these reasons, the Board Obligations with original maturities of 2lh to 4 has not favored the use of acquisition debt in forma­ years—or redeemable after 2lh to 4 years—will tions of bank holding companies. Nevertheless, the Board has recognized that the transfer of ownership of be subject to the ceiling rate payable on 2V2-year small banks often requires the use of acquisition debt. variable-ceiling time deposits. Obligations with The Board, therefore, has permitted the formation of original maturities of less than 2lh years—or re­ small one-bank holding companies with debt levels deemable in periods of less than 2lh years—will higher than would be permitted for larger or multibank be subject to the same rate limitations imposed holding companies. on member banks. Action was necessary in view of the impact While continuing to adhere to these principles, such instruments are likely to have on deposit the Board has reexamined the factors that apply flows among depositary institutions. This action to small one-bank holding company applications does not apply to commercial paper issued by with a view to improving the flexibility of these bank holding companies. companies in dealing with their debt obligations. Past policy called for repayment of all acquisi­ tion debt within 12 years, while maintaining a Policy Statement for Formation of satisfactory level of capital in the company’s Certain One-Bank Holding Companies bank subsidiary. The revised policy provides that the holding The Federal Reserve Board on March 28, 1980, company’s debt to equity ratio be reduced to no issued a policy statement designed to facilitate more than 30 percent within 12 years, which is the change of ownership of small banks and to approximately the level maintained by many help maintain the safety and soundness of the multibank holding companies. banking system by amending the criteria applied This reduction can be accomplished by direct in considering applications for one-bank holding debt repayment, or by building up equity through company formations. the retention of earnings, or both. The new policy applies to one-bank holding The new policy requires that capital in the sub­ companies meeting both of the following condi­ sidiary bank be maintained at no less than 8 per­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 321 cent of assets and allows for reasonable holding Banks. Participation in this market was broad­ company dividends and the use of preferred ened in the mid-1960s and early 1970s as member stock as equity under certain conditions. bank borrowing from nonmember commercial banks and certain other institutions—including savings and loan associations, mutual savings banks, and U.S. government agencies—was Data on Federal Funds and sanctioned by regulatory policy. Also, in the late Repurchase Agreements 1960s, regulations were adopted specifying that funds borrowed through repurchase agreements Table 1.13 in the F ederal Reserve Bulletin were exempt from reserve requirements and in­ and the Board’s H.5 statistical release have been terest rate ceilings only when secured by U.S. changed. Effective March 13, 1980, the daily av­ government and agency obligations (except erage borrowings in immediately available funds when obtained from certain customers consisting of 121 large member banks, disaggregated by mainly of commercial banks, savings and loan lender and term to maturity, will be reported; associations, mutual savings banks, and federal previously reported data from 46 large banks agencies).1 have been discontinued. In recent years, large banks have come to rely Immediately available funds are those that heavily on federal funds and RP borrowing as a borrowing banks receive the same day that the source of managed liabilities as well as for adjust­ transfer of these funds is initiated. Unsecured ing reserve positions. Federal funds and RPs, borrowings in immediately available funds—fed­ along with Eurodollar borrowings and issuance eral funds—are acquired mainly from commer­ of certificates of deposit, have allowed large cial banks and, to a lesser extent, from other de­ banks to finance credit expansion when inflows positary institutions and federal agencies. Other of core deposits—demand, savings, and smallborrowings in immediately available funds are denomination time deposits—were inadequate. principally sales of U.S. Treasury and federal agency obligations under an agreement to repur­ chase—security repurchase agreements (RPs)— Revised Guidelines for and are obtained from a much wider range of cus­ Contract A ctivities of Banks tomers, including nonbank securities dealers, nonfinancial corporations, and state and local The three federal bank regulatory agencies on governments. There is also a small amount of March 14, 1980, announced a number of revi­ borrowing in immediately available funds in the sions in their guidelines for banks that engage in form of promissory notes, repurchase agree­ futures, forward, and standby contracts on U.S. ments involving other assets, due bills, and cer­ government and agency securities. tain other obligations. The changes were made to guidelines adopted Borrowings of immediately available funds last November. The Federal Deposit Insurance may have a specified term to maturity—as short Corporation (FDIC) and the Federal Reserve as one business day—or may be made under con­ Board incorporated the guidelines in a policy tinuing contract. Transactions under continuing statement. The Comptroller of the Currency’s contract remain in effect until terminated, with­ out any requirement of prior notice by either bor­ 1. The nonreservable status of certain federal funds and RP rower or lender. The H.5 release and table 1.13 borrowings recently has been amended. Since late October provide information on two maturity categories: 1979, member banks have been required to hold reserves one day plus continuing contract borrowings, against the sum of their managed liabilities in excess of a base amount. These liabilities are defined to include large time de­ and all other maturities. posits (issued in denominations of $100,000 or more and The market for immediately available funds having original maturities of less than a year), Eurodollar bor­ originated as member banks sought to adjust re­ rowings, and federal funds and RP borrowings with matu­ rities of less than one year from customers other than mem­ serve positions among themselves by lending and ber banks, Edge Act corporations, and U.S. branches and borrowing reserves held at Federal Reserve agencies of foreign banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 Federal Reserve Bulletin □ April 1980 guidelines were contained in an operating circu­ 4. Policy objectives should be formulated in lar. the light of the bank’s entire mix of assets and In one change, adopted by the FDIC and the liabilities. Federal Reserve, futures and forward contracts 5. Standby contracts calling for settlement in executed by state-chartered banks before Janu­ more than 150 days should not be issued by ary 1, 1980, were exempted from the accounting banks except in special circumstances, and ordi­ procedures specified in the guidelines. The narily such long-term standby contracts would Comptroller of the Currency retained the Janu­ be viewed by the agencies as inappropriate. ary 1 effective date for all contracts entered into The 10-point guidelines that should be fol­ by national banks, as the Comptroller has had lowed by banks authorized to participate in these similar accounting provisions in effect since markets include directives on the role of bank 1977. boards of directors; recordkeeping; monitoring Other principle changes in the guidelines, of activities ; valuation of contracts ; treatment of adopted in the light of substantial comment re­ fee income in connection with a standby con­ ceived since the guidelines were published last tract; disclosures of activity by a bank in futures, November, include the following: forward, and standby contracts; monitoring of 1. Banks may exercise the option of carrying credit risk exposure; and internal controls at futures and forward positions on a market or on a banks. lower of adjusted cost or market basis. 2. Futures and forward contract activities as­ sociated with bona fide hedging of a mortgage Annual Report: Publication banking operation are exempted from the ac­ counting treatment otherwise prescribed for The Sixty-Sixth Annual Report of the Board of such contracts. Governors of the Federal Reserve System, cov­ 3. A number of other technical changes have ering operations for the calendar year 1979, is been made, including relaxation of the require­ available for distribution. Copies may be ob­ ment that a bank’s board of directors review con­ tained upon request to Publications Services, tracts at least monthly. Board of Governors of the Federal Reserve Sys­ The agencies adopted the guidelines following tem, Washington, D.C. 20551. a Treasury-Federal Reserve study indicating that banks can effectively use financial futures con­ tracts to hedge their risk of losses due to changes in interest rates but noting that improper use of Changes in Board Staff interest rate futures contracts increases, rather than decreases, the risk of losses due to changes The Federal Reserve Board has announced the in interest rates. appointment, effective March 23, 1980, of Bar­ In addition to their guidelines, the agencies bara R. Lowrey as Assistant Secretary of the provided the following precautionary rules to Board, assigned to oversee the Board’s Regula­ banks they supervise: tory Improvement Project. 1. Banks that engage in futures, forward, or Mrs. Lowrey, formerly with the Division of In­ standby contract transactions should do so only ternational Finance, joined the Board’s staff in in accordance with safe and sound banking prac­ 1970. She holds an M.A. from the University of tices. Wisconsin and a Ph.D. from Michigan State Uni­ 2. Such transactions should be of a size rea­ versity. In 1976-78 she was on assignment sonably related to the bank’s business needs and with the Organization for Economic Cooperation to its capacity to fulfill obligations incurred. and Development in Paris. 3. The positions banks take in futures, for­ The Federal Reserve System’s Regulatory Im­ ward, and standby contracts should be such as to provement Project involves a review of all Fed­ reduce the bank’s exposure to loss through inter­ eral Reserve regulations that affect the public. est rate changes. Each regulation is being analyzed to determine Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 323 its fundamental objectives, whether the regula­ time deposits at banks net of large-denomination tion is obsolete, whether it can be made less bur­ time deposits held by money market mutual funds densome, and whether it can be made more read­ and thrift institutions. ily understandable. The Board has also announced the temporary appointment of Cathy L. Petryshyn as Assistant Money stock seasonal factors, 1980 Secretary of the Board for a six-month period be­ Commercial bank ginning April 1, 1980. Ms. Petryshyn, of the Fed­ eral Reserve Bank of Cleveland, replaces Wil­ Period Currency d D e e p m o a si n t d s d S e a p v o in si g t s s d ti e m n e o S m m de i a n p l a l o - t s i i o t n s d ti e m n e o L m a d r e i g n p e a o - t s i i o t n s liam N. McDonough, who has returned to the Federal Reserve Bank of Boston. Monthly January ................ .9930 1.0210 .9950 .9980 1.0140 February.............. .9880 .9740 .9940 1.0030 1.0050 .9910 .9780 1.0040 1.0030 1.0080 April...................... .9970 1.0140 1.0100 1.0010 .9920 May ...................... .9980 .9790 1.0070 1.0040 .9950 June...................... 1.0010 .9950 1.0040 1.0050 .9850 July ...................... 1.0060 1.0050 1.0060 1.0010 .9830 Money Stock Seasonal Factors A Se u p g t u e s m t b .. e .. r .. . . . . . . . . . . . . . . . . . . . . . . . 1. . 0 9 0 9 2 8 0 0 . . 9 9 9 9 1 8 0 0 1. . 0 9 0 9 1 8 0 0 1 . . 9 0 9 0 9 0 0 0 . . 9 9 9 9 4 3 0 0 .9980 1.0070 .9960 1.0030 1.0010 November............ 1.0070 1.0070 .9930 .9920 1.0070 In February 1980 the Board announced new defi­ December ............ 1.0180 1.0290 .9900 .9900 1.0230 Weekly nitions of money that will be used in the conduct 1.0060 1.0650 .9910 .9920 1.0230 of monetary policy. (A detailed description of the 9................. 1.0070 1.0510 .9970 .9980 1.0160 16................. .9970 1.0390 .9960 .9970 1.0140 revised series appears in “The Redefined Mone­ 23................. .9880 1.0060 .9950 .9980 1.0130 30................. .9760 .9800 .9930 .9990 1.0120 tary Aggregates,” Federal Reserve Bulle­ Feb. 6................. .9900 .9890 .9930 1.0010 1.0070 tin, volume 66, February 1980, pages 97-114.) 2 1 0 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 9 9 9 3 00 0 . . 9 97 84 0 0 0 . . 9 9 9 9 4 4 0 0 1 1 . . 0 0 0 0 4 3 0 0 1 1 . . 0 0 0 0 3 5 0 0 27................. .9780 .9540 .9950 1.0040 1.0050 The accompanying table shows monthly and weekly seasonal factors for the currency and de­ Mar. 1 5 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 9 9 8 8 9 0 0 . .9 9 8 83 20 0 1 . .0 9 0 9 1 7 0 0 1 1 . . 0 0 0 0 4 4 0 0 1 1 . . 0 0 0 0 9 7 0 0 19................. .9920 .9830 1.0040 1.0040 1.0070 mand deposit components of the new M-l A and 26................. .9870 .9620 1.0070 1.0020 1.0080 M-1B measures for 1980. Other checkable de­ .9900 .9870 1.0120 1.0010 1.0060 posits (negotiable orders of withdrawal, automatic 1 9 6 . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 . . 0 0 0 1 3 0 0 0 1 1 . . 0 0 3 1 0 5 0 0 1 1 . . 0 0 1 1 6 3 0 0 1. .9 00 9 0 95 0 . . 9 9 9 9 1 9 0 0 23................. .9940 1.0220 1.0070 1.0020 .9870 transfer service, credit union share draft balances, 30................. .9830 .9940 1.0040 1.0040 .9880 and demand deposits at thrift institutions) also 1.0000 .9860 1.0060 1.0030 .9890 included in M-lB are not seasonally adjusted be­ 2 1 1 4 . . . . . . . .. . . . . .. . . . . . . .. . . . . .. . . . . . 1 . .0 9 0 9 2 8 0 0 . . 9 9 8 7 3 5 0 0 1 1 . . 0 0 0 0 8 8 0 0 1 1 . . 0 0 0 0 4 4 0 0 . . 9 9 9 9 2 8 0 0 cause sufficient historical data are not available 28................. .9930 .9660 1.0070 1.0040 1.0010 for this component. 11................. 1 . . 9 0 9 1 9 0 0 0 1 . . 9 0 9 0 1 5 0 0 1 1. . 0 0 0 0 7 6 0 0 1 1. . 0 0 0 0 5 5 0 0 . . 9 9 9 8 5 90 0 Monthly and weekly seasonal factors for time 2 1 5 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . .0 99 02 60 0 1. . 0 98 0 0 3 0 0 1 1 . . 0 0 0 0 1 3 0 0 1 1 . .0 00 05 50 0 . .9 98 8 2 0 0 0 and savings deposits at commercial banks—com­ July 2................. .9990 1.0020 1.0040 1.0050 .9830 ponents of the broader redefined aggregates, M-2 1 9 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 . . 0 0 1 2 0 2 0 0 1 1 . . 0 0 1 1 5 9 0 0 1 1 . .0 00 0 8 8 0 0 1 1 . . 0 0 0 0 0 2 0 0 . . 9 9 8 8 0 1 0 0 and M-3—are shown in the table. In addition to 2 3 3 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . . 9 0 9 0 2 2 0 0 . . 9 9 9 8 8 8 0 0 1 1 . .0 00 0 6 40 0 1 1 . . 0 0 0 0 0 0 0 0 . . 9 98 8 7 3 0 0 M-1B, M-2 includes savings and small-denomina­ Aug. 6................. 1.0070 .9960 1.0030 .9990 .9920 tion time deposits at all depositary institutions, 2 1 0 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 . .0 01 0 0 3 0 0 . . 9 9 9 9 9 2 0 0 1 1 . . 0 0 0 0 2 1 0 0 1. . 0 9 0 9 0 9 0 0 . . 9 9 9 9 3 4 0 0 but only commercial bank data are available on a 27................ .9920 .9750 1.0000 .9980 .9960 weekly basis for savings and small-denomination Sept. 1 3 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 . . 0 0 0 10 0 0 0 1 . . 9 0 9 03 3 0 0 1. . 0 9 0 9 0 9 0 0 . . 9 9 9 9 9 9 0 0 . . 9 9 9 9 3 5 0 0 time deposits. M-2 also includes overnight repur­ 2 1 4 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . . 9 0 9 0 2 00 0 1 . . 9 01 8 2 6 0 0 . . 9 9 9 9 8 6 0 0 1 . . 9 0 9 0 9 10 0 . . 9 9 9 92 10 0 chase agreements (RPs) at commercial banks, Oct. 1................ .9850 .9960 .9980 1.0020 .9960 overnight Eurodollars held by U.S. residents 1 8 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 . . 0 0 0 0 4 6 0 0 1 1 . . 0 0 1 1 4 5 0 0 1 . . 9 0 9 0 8 0 0 0 1 1 . . 0 0 0 0 3 2 0 0 . . 9 9 9 9 8 7 0 0 other than banks at Caribbean branches of mem­ 2 2 9 2. . . . . . . . . . . . . .. . . . . . . . . . . . . .. . . . . . 9 9 8 9 6 5 0 0 1 . . 9 0 9 0 3 2 0 0 . . 9 9 9 9 2 5 0 0 1 1 . . 0 0 0 0 3 3 0 0 1 1. . 0 0 0 0 6 2 0 0 ber banks, and money market mutual fund shares. 1.0000 1.0150 .9920 1.0000 1.0030 M-3 comprises M-2 plus large-denomination 1 1 9 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 . . 0 0 0 1 8 2 0 0 1 1 . . 0 0 0 0 9 90 0 . . 9 9 9 9 3 10 0 . . 9 9 9 8 4 9 0 0 1 1 . . 0 0 0 0 2 5 0 0 time deposits at all depositary institutions and 26................. 1.0040 .9930 .9940 .9880 1.0090 term RPs at commercial banks and savings and 10................. 1 1 . . 0 0 1 2 0 2 0 0 1 1 . . 0 0 1 2 6 2 0 0 . . 9 9 9 9 3 4 0 0 . . 9 9 8 8 8 9 0 0 1 1 . . 0 0 1 2 3 0 0 0 loan associations. The last column of the table 2 1 4 7. . . . . . . . . . . . . .. .. . . . . . . . . . . .. .. . . . 1 1 . . 0 02 17 40 0 1 1. . 0 03 2 1 7 0 0 . . 9 9 9 8 1 7 0 0 . . 9 9 8 9 9 0 0 0 1 1 . .0 02 24 4 0 0 31................. 1.0110 1.0440 .9860 .9910 1.0230 shows seasonal factors for large-denomination Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 Federal Reserve Bulletin □ April 1980 Meeting of the requirements for continued listing; and 62 Consumer Advisory Council stocks have been removed for listing on a na­ tional securities exchange or because the com­ The Federal Reserve Board has announced that panies were acquired by another firm. its Consumer Advisory Council met on April 28 The list is available on request from Publica­ and 29, 1980. tions Services, Board of Governors of the The Council is made up of 30 members repre­ Federal Reserve System, Washington, D.C. senting a broad range of consumer and credit in­ 20551. terests and advises the Board on its responsi­ bilities regarding consumer credit protection legislation at quarterly meetings. S ystem Membership.- Admission of State Banks Revised OTC Stock List The following banks were admitted to member­ ship in the Federal Reserve System during the The Federal Reserve Board has published a period March 11 through April 10, 1980: revised list of over-the-counter (OTC) stocks that are subject to its margin regulations, effec­ Florida tive April 4, 1980. The list supersedes the Coral Gables.....................First City Bank of revised List of OTC Margin Stocks that was Dade County issued on October 1, 1979. Ohio Changes that have been made in the list, Cincinnati..................Ameritrust Company of which now includes 1,252 OTC stocks, are as Cincinnati follows: 94 stocks have been included for the Texas first time; 9 stocks previously on the list have Cleburne............................First State Bank of been removed for substantially failing to meet Cleburne Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

325 Record of Policy Actions of the Federal Open Market Committee Meeting Held on The Department of Commerce February 4-5,1980 survey of business spending plans taken in late November and Decem­ Domestic Policy Directive ber suggested that expenditures for Growth in real output of goods and plant and equipment would rise services moderated to an annual rate about 11 percent from 1979 to 1980, of about IV2 percent in the fourth after having expanded about 1474 quarter of 1979, according to prelim­ percent in 1979. After allowance for inary estimates of the Commerce expected increases in prices, how­ Department. Real gross national ever, the rise projected for 1980 was product had grown at a rate of about negligible. 3 percent in the third quarter, but­ In December private housing tressed by strength in consumer starts were at an annual rate of 1.5 spending. Average prices, as mea­ million units, unchanged from No­ sured by the fixed-weight price index vember but down from an average for gross domestic business product, rate of 1.8 million units in both the increased at an annual rate of about second and the third quarters of the 974 percent in the fourth quarter, af­ year. Combined sales of new and ter having risen at an average annual existing single-family homes fell in rate of about 10 percent in the first November for the second con­ three quarters. Over the year ending secutive month, and preliminary in­ with the fourth quarter of 1979, real dications suggested a further decline GNP and nominal GNP grew about in December. 74 percent and 10 percent respec­ Producer prices of finished goods tively. and consumer prices continued to Total retail sales strengthened in rise rapidly in late 1979, in part be­ November and December, after a cause of the continuing spread of the sharp decline in October. From the effects of earlier increases in energy third to the fourth quarter, however, costs. In December producer prices sales changed little in constant-dol- and consumer prices were about lar terms as consumer buying of new 1272 percent and 1374 percent re­ automobiles and some other durable spectively above a year earlier. Both goods weakened. measures had risen around 9 percent The index of industrial production during 1978. rose somewhat in December, off­ The rise in the index of average setting the decline in November. In hourly earnings of private nonfarm the fourth quarter, industrial produc­ production workers moderated in tion was up about 1 percent from a January, following sharp increases year earlier. in November and December. For the Nonfarm payroll employment, year 1979 the index was up 8.3 per­ which had expanded moderately cent, about the same as in 1978. during the fourth quarter, rose sub­ In foreign exchange markets, stantially further in January. How­ pressures on the dollar were rela­ ever, the rate of unemployment rose tively slight in January. The tradefrom 5.9 to 6.2 percent in January, weighted value of the dollar against its highest level in well over a year. major foreign currencies changed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 Federal Reserve Bulletin □ April 1980 little on balance despite increased in­ from an average of about 14 percent ternational political tensions. The in late December and early January U.S. trade deficit rose considerably to about 1372 percent in the state­ in December from a relatively low ment week ending January 30 and to November level, in large part be­ a somewhat lower average in the re­ cause of an increase in oil imports. maining days preceding this meet­ For the fourth quarter as a whole, ing. Growth in total reserves the trade deficit was close to the sec­ decelerated sharply in January to an ond- and third-quarter levels. annual rate of 4 percent. Non­ At its meeting on January 8-9, borrowed reserves expanded at an 1980, the Committee had agreed that annual rate of about 11 percent, as open market operations in the period average member bank borrowings until this meeting should be directed declined somewhat further in Janu­ toward expansion of reserve aggre­ ary from the reduced level in De­ gates consistent with growth of M-l cember. during the first quarter of 1980 at an Newly available data confirmed a annual rate between 4 and 5 percent weakening of bank credit extensions and expansion of M-2 on the order of to nonfinancial businesses in the 7 percent, provided that in the inter­ fourth quarter. However, in­ meeting period the weekly average complete data for January suggested federal funds rate remained general­ a rise in bank lending to such bor­ ly within a range of 11V2 to 1572 per­ rowers. In addition, the issuance of cent. The Committee had also commercial paper by nonfinancial agreed that if the constraint on the corporations rebounded in Decem­ federal funds rate appeared to be in­ ber and January. consistent with the objective for the Most market interest rates, espe­ expansion of reserves, the Mana­ cially longer-term rates, rose over ger for Domestic Operations was the intermeeting period despite the promptly to notify the Chairman decline in the federal funds rate. Ad­ who would then decide whether the vances in Treasury bill rates ap­ situation called for supplementary peared to reflect large Treasury instructions from the Committee. issues to raise new cash. Longer- Expansion in the major monetary term debt markets were influenced aggregates, which had subsided in by an intensification of inflationary the final months of 1979, remained at expectations, which seemed to re­ reduced rates in January. M-l and flect data indicating stronger busi­ M-2 were estimated to have ex­ ness activity than anticipated and panded in January at annual rates of the prospect of enlarged defense about IV2 percent and 574 percent spending in response to international respectively, compared with rates of tensions. The home mortgage mar­ about 3 percent and 63A percent over ket remained exceptionally tight in the preceding three months. M-3 January, but there were a few re­ was estimated to have grown at an ports of liberalization in lending poli­ annual rate of about 472 percent in cies in the primary market. January, after having expanded at a Staff projections prepared for this rate of about 6 percent during the meeting suggested that growth of fourth quarter. nominal GNP would slow much less With the demand for money mod­ in the current quarter than had ap­ erate, the federal funds rate declined peared likely a month earlier, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 327 growth over the remaining quarters percent in the fourth quarter. Inter­ of 1980 was expected to vary rela­ pretations of the phenomenon and tively little from the first-quarter its implications for the future dif­ pace. The projections continued to fered: it might result primarily from suggest that real GNP would con­ inflation’s squeeze on household tract moderately during the year and budgets and thus foreshadow a sud­ that the rate of unemployment would den retrenchment in consumer increase substantially. Price pros­ spending; or it might represent pri­ pects for the current year were simi­ marily a consumer adaptation to lar to those of a month earlier: the high current and prospective rates of rise in average prices was projected inflation and so could persist. Nearto accelerate somewhat during the term prospects for consumer spend­ early part of the year from the annu­ ing were clouded, in addition, by al rate of about 9XU percent in the more than the usual uncertainty fourth quarter of 1979, mainly be­ about the effects of federal income cause of increases in energy costs, tax refunds, which were expected to but to subside later. In view of inter­ be unusually large in March and national conditions and an apparent April this year. strengthening of inflationary psy­ A second major element of un­ chology, however, the projections certainty in projecting output and were subject to greater uncertainties prices was the course of defense than usual, especially with regard to expenditures in the light of the consumer and defense spending. heightened international tensions In the Committee’s discussion of provoked by the Soviet Union’s in­ the economic situation and outlook, vasion of Afghanistan. Opinions dif­ the members in general stressed the fered concerning the speed with unusual uncertainties affecting fore­ which a buildup of defense spending casts of both output and prices. could be accomplished and, con­ Most members thought that a mod­ sequently, about whether federal erate contraction in real GNP was spending would contribute more or likely in 1980, bringing a substantial less to overall demand and output increase in unemployment, and they than suggested by the administra­ expected the rise in prices to remain tion’s budget. In this connection, it very rapid. The view was also ex­ was observed that business outlays pressed, however, that real GNP could be expected to expand in an­ would decline little if at all during the ticipation of the defense buildup. On year, that the unemployment rate the receipts side of the federal bud­ would increase less than generally get, tax reductions this year general­ anticipated, and that the rise in ly were regarded as unlikely—in the prices could well accelerate further. absence, at least, of considerably One major uncertainty for the im­ greater weakness in economic activi­ mediate future was the probable be­ ty than was commonly foreseen at havior of consumer spending for this time. goods and services. Such spending Committee members continued to had been unexpectedly strong in the express great concern about the in­ latter part of 1979 despite weak flationary environment and its role in growth in disposable personal in­ generating distortions and instabili­ come, and the saving rate had fallen ty. It was suggested that the recent to an exceptional low of about VU international developments, includ­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 Federal Reserve Bulletin □ April 1980 ing the further substantial increases aggregates was announced on Feb­ in oil prices, were counteracting the ruary 7. M-l A comprises currency progress that had been made in the plus demand deposits at commercial latter part of 1979 in dampening ex­ banks; it is the same as the displaced pected rates of increase in prices. M-l, except that demand deposits At this meeting, the Committee held by foreign banks and foreign of­ completed the review, begun a ficial institutions are excluded. M-1B month earlier, of the ranges for comprises M-l A and other check­ growth of monetary aggregates over able deposits at all depositary insti­ the period from the fourth quarter of tutions; thus, NOW accounts, ATS, 1979 to the fourth quarter of 1980 credit union share drafts, and de­ within the framework of the Full mand deposits at mutual savings Employment and Balanced Growth banks are included. M-2 contains Act of 1978. The act, which M-1B and savings and small-denom­ amended section 2A of the Federal ination time deposits at all deposi­ Reserve Act, requires the Board of tary institutions, overnight RPs at Governors to transmit to the Con­ commercial banks, overnight Euro­ gress by February 20 and July 20 of dollars held at Caribbean branches each year written reports concerning of member banks by U.S. residents the objectives and plans of the Board other than banks, and money market and the Committee with respect to mutual fund shares. Finally, M-3 is the ranges of growth or diminution M-2 plus large-denomination time of the monetary and credit aggre­ deposits at all depositary institutions gates for the calendar year during and term RPs at commercial banks which the report is transmitted and, and savings and loan associations. in the case of the July report, the ob­ From the fourth quarter of 1978 to jectives and plans with respect to the fourth quarter of 1979, M-l A ranges for the following calendar grew 5.5 percent, the same as M-l; year as well. The act also requires after taking into account the amount that the written reports set forth a re­ of demand deposits apparently view and analysis of recent develop­ shifted to ATS and New York State ments affecting economic trends in NOW accounts, the estimated rate the nation and the relationship of the was 6.8 percent. M-1B grew 8.0 per­ plans and objectives for the aggre­ cent; M-2, 8.8 percent; and M-3, 9.5 gates to the short-term goals set percent. forth in the most recent Economic In contemplating ranges for Report of the President and to any growth of the monetary aggregates short-term goals approved by the over the year ahead, Committee Congress.1 members stressed the unusually In contemplating monetary growth great uncertainties concerning pros­ for the year ahead, the Committee pects for economic activity and considered ranges for the new def­ prices and thus for growth of nomi­ initions of the monetary aggre­ nal GNP. The shift to new defini­ gates: M-1A, M-1B, M-2, and M-3. tions of monetary aggregates A description of these newly defined introduced additional uncertainties concerning the relationships be­ tween them and nominal GNP as 1. The Board’s third report under the act well as the relationships among the was transmitted to the Congress on February 19, 1980. aggregates themselves in response to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 329 changing financial market condi­ ever ranges it adopted at this meet­ tions. Moreover, enactment of pend­ ing. ing legislation to authorize NOW A few members favored specifica­ accounts nationally would in the tion of relatively narrow ranges. In short run have a significant impact light of the difficulties of maintaining on growth of some of the monetary growth within a narrow range and of aggregates in relation to changes in the uncertainties concerning both economic activity. It was noted, the outlook for the economy and the however, that the ranges adopted at behavior of the newly defined aggre­ this meeting could be modified at gates, however, most members fa­ any time in the light of legislative or vored ranges on the order of the 3 other developments and in any event percentage points adopted for 1979. would be reconsidered at midyear. At the conclusion of the dis­ In the Committee’s discussion of cussion, the Committee adopted the the ranges for the coming year, the following ranges for growth of the members agreed that monetary monetary aggregates over the period growth should slow further in 1980, from the fourth quarter of 1979 to the following some deceleration over fourth quarter of 1980: M-l A, Vh to 1979, in line with the continuing ob­ 6 percent; M-1B, 4 to 6V2 percent; jective of curbing inflation and pro­ M-2, 6 to 9 percent; and M-3, 6V2 to viding the basis for restoration of 9V2 percent. The associated range economic stability and sustainable for growth of commercial bank cred­ growth in output of goods and serv­ it was 6 to 9 percent. It was under­ ices. Committee members differed stood that the longer-run ranges somewhat in their views concerning would be reconsidered in July or at the particular aggregates for which any other time that conditions might longer-run ranges of growth should warrant. It was also understood that be specified. Most members thought short-run factors might cause con­ that in the present circumstances it siderable variation in annual rates of was appropriate to specify ranges for growth from one month to the next the four aggregates, M-1A, M-1B, and from one quarter to the next. M-2, and M-3; but some sentiment The Committee adopted the following was also expressed for omitting ranges for rates of growth in monetary M-l A from the list, and some for aggregates for the period from the fourth omitting M-3 as well. With respect to quarter of 1979 to the fourth quarter of M-l A, its growth would be dampened 1980: M-1A, Vh to 6 percent; M-1B, 4 to 6V2 percent; M-2, 6 to 9 percent; and in the event of enactment of nation­ M-3, 6V2 to 972 percent. The associated wide NOW account legislation and, range for bank credit is 6 to 9 percent. as would be expected, a large trans­ Votes for this action: Messrs. Volck­ fer of funds from demand deposits to er, Balles, Black, Coldwell, Kimbrel, NOW accounts. In support of retain­ Mayo, Partee, Rice, Schultz, Mrs. ing M-l A on the list, however, it was Teeters, Messrs. Wallich, and Timnoted that enactment of the legisla­ len. Votes against this action: None. tion would tend to distort growth of (Mr. Timlen voted as an alternate member.) M-1B also—in the opposite direction as a result of transfers of funds from savings deposits to NOW ac­ In contemplating policy for the counts—and no doubt would lead near term, the Committee took note the Committee to reconsider what­ of a staff analysis indicating that the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 Federal Reserve Bulletin □ April 1980 policy decision taken at the meeting grounds that prospects for economic of early January implied an annual activity apparently had strengthened rate of growth of about 4l/2 percent since a month earlier and inflation­ in the new M -1 A over the period ary expectations had worsened. from Decem ber to M arch. Consis­ At the conclusion of the dis­ tent rates of growth in M-1 B and the cussion, the Com m ittee agreed that newly defined M-2 were estim ated to open market operations in the period be slightly above 5 percent and until the next meeting should be di­ about 6V2 percent respectively. In rected toward expansion of reserve January M-1 A had grown at a rate of aggregates consistent with growth about 43/4 percent; growth in M-1B over the first quarter of 1980 at an and M-2, at rates of about 6 percent annual rate of about 4V2 percent for and 8V4 percent respectively, had M-1 A and about 5 percent for M-1B, exceeded their three-m onth rates by provided that in the period until the larger margins. Accordingly, m one­ next meeting the weekly average tary growth, particularly as mea­ federal funds rate rem ained within a sured by M-1 B and M-2, would have range of IIV2 to 15V2 percent. Con­ to decelerate from January to M arch sistent with this short-run policy, in if the rates realized for the whole the Com m ittee’s view, the newly de­ three-m onth period were to be con­ fined M-2 should grow at an annual sistent with those implied by the rate of about 6V2 percent over the Com m ittee’s decision in January. first quarter. If the constraint on the The staff analysis also noted that federal funds rate appeared to be in­ the transactions dem and for money consistent with the objective for the in the first quarter implied by projec­ expansion of reserves, the M ana­ tions of nominal GNP were stronger ger for Domestic Operations was than a month earlier. At the same promptly to notify the Chairman time, the relationship between mon­ who would then decide whether the ey growth and GNP was particularly situation called for supplementary uncertain because disbursem ent of instructions from the Committee. the exceptionally large federal in­ The following dom estic policy di­ come tax refunds beginning in late rective was issued to the Federal Re­ February could generate a tem po­ serve Bank of New York: rary bulge in money demand. The information reviewed at this In the Com m ittee’s discussion of meeting suggests that real output of policy for the period immediately goods and services expanded somewhat ahead, most m em bers favored es­ in the final quarter of 1979 and that prices on the average continued to rise rapidly. sentially an extension of the objec­ In December retail sales strengthened, tives for the period from December industrial production edged up, and non­ to M arch that had been established farm payroll employment continued to in early January. The behavior of the rise, while private housing starts re­ mained at the reduced level of Novem­ monetary aggregates had been more ber. Nonfarm payroll employment rose or less on course since then and, it substantially further in January, but the was suggested, little had occurred to unemployment rate rose from 5.9 to 6.2 warrant a change in course. On the percent. Producer prices of finished other hand, some sentim ent was ex­ goods and consumer prices continued to rise rapidly toward the end of 1979, in pressed for a reduction in the objec­ part because of the spreading effects of tives for m onetary growth over the earlier increases in energy costs. Over first three m onths of the year, on the the past several months the rise in the in­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 331 dex of average hourly earnings has re­ Partee, Rice, Schultz, Mrs. Teeters, mained close to the rapid pace recorded and Mr. Timlen. Votes against this earlier in 1979. action: Messrs. Coldwell and Wal­ The trade-weighted value of the dollar lich. (Mr. Timlen voted as an alter­ against major foreign currencies changed nate member.) little in January, and exchange market pressures were relatively slight in spite M essrs. Coldwell and W allich dis­ of increased international political ten­ sions. The U.S. foreign trade deficit rose sented from this action because they in December, in large part because of an favored a more restrictive policy for increase in imports of petroleum. the period immediately ahead. Be­ Growth of the major monetary aggre­ lieving that inflationary expectations gates, which had subsided in the final had worsened in recent weeks while months of 1979, remained at reduced rates in January. Most market interest prospects for econom ic activity had rates, especially long-term rates, have strengthened, they thought that risen since the Committee’s meeting in money and credit were too readily early January. available and current levels of inter­ Taking account of past and prospec­ est rates were not exerting sufficient tive economic developments, the Feder­ al Open Market Committee seeks to restraint. foster monetary and financial conditions Subsequent to the meeting, on that will resist inflationary pressures February 22, available data sug­ while encouraging moderate economic gested that M -1A and M -1B were expansion and contributing to a sustain­ able pattern of international transac­ growing at rapid rates in February, tions. The Committee agreed that these and in consequence the demand for objectives would be furthered by growth bank reserves had strengthened con­ of M-l A, M-1B, M-2, and M-3 from the siderably. The federal funds rate had fourth quarter of 1979 to the fourth quar­ ter of 1980 within ranges of Vh to 6, 4 to risen to about 15 percent, and m em ­ 6V2, 6 to 9, and 6V2 to 9V2 percent re­ ber bank borrowings had also in­ spectively. The associated range for creased. To provide the M anager for bank credit was 6 to 9 percent. Domestic Operations with additional In the short run, the Committee seeks scope for operations in these circum ­ expansion of reserve aggregates consis­ tent with growth over the first quarter of stances, Chairm an Volcker recom ­ 1980 at an annual rate of about 4V2 per­ mended that the upper limit of the cent for M-l A and 5 percent for M-1B, range of IIV2 to 15V2 percent speci­ provided that in the period before the fied for the federal funds rate be next regular meeting the weekly average federal funds rate remains within a range raised to I6V2 percent on a tem po­ of IIV2 to 15V2 percent. The Committee rary basis until the situation could be believes that, consistent with this short- reassessed. run policy, M-2 as newly defined should grow at an annual rate of about 6V2 per­ cent over the first quarter. On February 22, the Committee modi­ If it appears during the period before fied the domestic policy directive the next meeting that the constraint on adopted at its meeting on February 4-5, the federal funds rate is inconsistent with 1980, to raise the upper limit of the range the objective for the expansion of re­ for the federal funds rate to 16V2 per­ serves, the Manager for Domestic Oper­ cent. ations is promptly to notify the Chairman Votes for this action: Messrs. Volck­ who will then decide whether the situa­ er, Balles, Black, Kimbrel, Mayo, tion calls for supplementary instructions Partee, Rice, Schultz, Mrs. Teeters, from the Committee. Messrs. Wallich and Timlen. Votes against this action: None. Absent: Votes for this action: Messrs. Volck- Mr. Coldwell. (Mr. Timlen voted as er, Balles, Black, Kimbrel, Mayo, alternate member.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 Federal Reserve Bulletin □ April 1980 In the statem ent week ending Votes for this action: Messrs. Volck­ M arch 5, the federal funds rate rose er, Guffey, Morris, Partee, Rice, Roos, Schultz, Mrs. Teeters, Messrs. to an average of slightly more than Wallich, Winn, and Timlen. Votes 167s percent and m em ber bank bor­ against this action: None. (Mr. Tim­ rowings expanded further to a daily len voted as alternate member.) average of about $272 billion. On M arch 6 federal funds generally trad­ In the telephone conference held ed around 17 percent, despite sizable in the afternoon of M arch 7, the reserve-supplying operations by the Committee voted to raise the upper System, and the M anager advised limit of the interm eeting range for that in his opinion additional leeway the federal funds rate to 18 percent, above the existing upper limit of to provide greater operational flexi­ I6V2 percent was needed for opera­ bility in meeting reserve objectives. tional flexibility in meeting reserve objectives. In late afternoon, Chair­ On March 7, the Committee further modified the domestic policy directive man Volcker recom m ended that the adopted at its meeting of February 4-5, upper limit of the intermeeting range 1980, to raise the upper limit of the range for the federal funds rate be raised to for the federal funds rate to 18 percent. 1772 percent, pending a discussion of the situation in a telephone con­ Votes for this action: Messrs. Volck­ ference of the Committee to be held er, Guffey, Morris, Partee, Rice, Roos, Schultz, Mrs. Teeters, Messrs. in the afternoon of the following day, Wallich, Winn, and Timlen. Votes and the Com m ittee voted to approve against this action: None. (Mr. Tim­ the Chairm an’s recom m endation. len voted as alternate member.) Records of policy actions taken by the Federal Open Market Committee at each meeting, in the form in which they will appear in the Board’s Annual Report, are made available a few days after the next regularly scheduled meeting and are later published in the Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

333 Legal Developments Credit Restraint Program equal to 10 per cent of the amount by which the daily average of its total managed liabilities during the sev­ The Board of Governors has approved a series of en-day computation period ending eight days prior to monetary and credit actions as part of a general gov­ the beginning of the corresponding seven-day reserve ernment program to help curb inflationary pressures. maintenance period exceeds the member bank’s man­ The affected regulations follow. aged liabilities base as determined in accordance with subparagraph (3). A member bank’s managed liabili­ ties are the total of the following: * * * Amendments to Regulation D (2) United States branches and agencies of foreign banks. A United States branch or agency of a foreign On October 6, 1979, the Board of Governors bank with total worldwide consolidated bank assets in amended Regulation D, Reserves of Member Banks, excess of $1 billion shall maintain a daily average re­ to establish a marginal reserve requirement of 8 per serve balance against its liabilities equal to 10 per cent cent on the amount by which the total of certain man­ of the amount by which the daily average of its total aged liabilities of member banks (and Edge and Agree­ managed liabilities during the seven-day computation ment Corporations) and United States branches and period ending eight days prior to the beginning of the agencies of foreign banks exceeds the amount of an corresponding seven-day reserve maintenance period institution’s base of managed liabilities. The Board has exceeds the institution’s managed liabilities base as amended Regulation D to increase the marginal re­ determined in accordance with subparagraph (3). In serve requirement ratio to 10 per cent. The Board also determining managed liabilities of United States has amended Regulation D to reduce an institution’s branches and agencies of the same foreign parent bank managed liabilities base by the greater of 7 per cent or and of its majority-owned (greater than 50 per cent) the amount of decrease in an institution’s daily aver­ foreign banking subsidiaries (the “family”) shall be age gross loans to non-United States residents and consolidated. Asset and liability amounts that repre­ gross balances due from foreign offices of other institu­ sent intra-family transactions between United States tions between the base period (September 13-26, 1979) branches and agencies of the same family shall not be and the statement week ending March 12, 1980. These included in computing the managed liabilities of the actions are being taken to moderate expansion of bank family. United States branches and agencies of the credit, thereby dampening inflationary pressures. same family shall designate one U.S. office to be the This action is effective for marginal reserves re­ reporting office for purposes of filing consolidated fam­ quired to be maintained during the seven-day period ily reports required for determination of the family’s beginning April 3, 1980, against total managed liabili­ marginal reserve requirements. The reporting office ties outstanding during the seven-day period beginning shall file reports and maintain marginal reserves re­ on March 20, 1980. quired under this section for the family at the Federal Effective April 3, 1980, section 204.5 of Regulation Reserve Bank of the district in which the reporting of­ D is revised as follows: fice is located. The total managed liabilities of a family are the total of each branch’s and agency’s: * * * (3) Managed liabilities base. During the seven-day Section 204.5—Reserve Requirem ents reserve computation period beginning March 20, 1980, and during each seven-day reserve computation period thereafter, the managed liabilities base of a member bank or a family of United States branches and (f) Marginal reserve requirements. agencies of a foreign bank (“family”) shall be deter­ mined as follows: (1) Member banks. A member bank shall maintain a (i) For a member bank or family that, on a daily daily average reserve balance against its time deposits average basis, is a net borrower of total managed lia­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 Federal Reserve Bulletin □ April 1980 bilities during the fourteen-day base period ending tember 26, 1979, its managed liabilities base shall be September 26, 1979, its managed liabilities base shall the sum of its daily average negative total managed lia­ be the daily average of its total managed liabilities dur­ bilities and $100 million. ing the base period less the greater of (A) 7 per cent of the daily average of its total managed liabilities during the base period; or (B) the amount equal to the decrease in its daily Amendments to Regulation Q average gross loans to non-United States resi­ dents18 and gross balances due from foreign of­ The Board of Governors has amended Regulation Q, fices of other institutions19 or institutions, the Interest on Deposits, to impose interest rate limita­ time deposits of which are exempt from the rate tions on certain obligations issued by a member bank’s limitations of Regulation Q pursuant to § 217.3(g) parent bank holding company. The amendment does thereof20 between the fourteen-day base period not apply to commercial paper issued by a member ending September 26, 1979, and the computation bank’s parent bank holding company. This action is period ending March 12, 1980. being taken to facilitate the orderly administration of For each computation period beginning after March 19, currently prescribed interest rate limitations. 1980, the managed liabilities base of a member bank The Board amends Regulation Q, effective March 14, or family shall be further reduced during the com­ 1980, as follows: putation period by the amount by which its lowest 1. Section 217.1 of Regulation Q is amended by add­ daily average of gross loans to non-United States resi­ ing: dents18 and gross balances due from foreign offices of other institutions19 or institutions, the time deposits of which are exempt from the rate limitations of Regula­ Section 217.1—Definitions tion Q pursuant to § 217.3(g) thereof20 outstanding dur­ ing any computation period beginning after March 19, 1980, is lower than the daily average amount of such loans and balances outstanding during the computa­ (h) Obligations issued by the parent bank holding tion period ending on March 12, 1980. The amount rep­ company of a member bank. For the purposes of this resenting such difference shall be rounded to the next Part, the “deposits” of a member bank also includes lowest multiple of $2 million. an obligation that is (1) issued in a denomination of less In no event will the managed liabilities base for an than $100,000; (2) required to be registered with the institution that was a net borrower of managed liabili­ Securities and Exchange Commission under the Secu­ ties during the fourteen-day base period ending Sep­ rities Act of 1933; (3) issued or guaranteed in whole or tember 26, 1979 be less than $100 million. in part as to principal or interest by the member bank’s (ii) For a member bank or family that, on a daily parent which is a bank holding company under the average basis, is a net lender of total managed liabili­ Bank Holding Company Act of 1956, as amended (12 ties during the fourteen-day base period ending Sep- U.S.C. §§ 1841-1850), regardless of the use of the pro­ ceeds; and (4) issued with an original maturity of 4 years or less, or which is redeemable at intervals of 4 years or less at the option of the holder. The term “de­ posits” does not include those obligations of a bank 18. A United States resident is: (a) Any individual residing (at the holding company that are subject to interest rate limi­ time the credit is extended) in any State of the United States or the tations imposed pursuant to P.L. 89-597. District of Columbia; (b) any corporation, partnership, association or other entity organized therein (“domestic corporation”); and (c) any 2. Section 217.7 of Regulation Q is amended by add­ branch or office located therein of any other entity wherever orga­ ing: nized. Credit extended to a foreign branch, office, subsidiary, affiliate or other foreign establishment (“foreign affiliate”) controlled by one or more such domestic corporations will not be deemed to be credit extended to a United States resident if the proceeds will be used in its Section 217.7—Maximum Rates of Interest Payable by foreign business or that of other foreign affiliates of the controlling Member Banks on Time and Savings Deposits domestic corporation(s). 19. Any banking office located outside the States of the United States and the District of Columbia of a bank organized under domes­ tic or foreign law. 20. A foreign central bank, or any international organization of which the United States is a member, such as the International Bank (h) Obligations of the parent bank holding company for Reconstruction and Development (World Bank), International of a member bank. Notwithstanding the above, inter­ Monetary Fund, Inter-American Development Bank, and other for­ eign international, or supranational entities exempt from interest rate est may be paid on a deposit as defined in § 217.1(h) of limitations under § 217.3(g)(3) of Regulation Q (12 CFR 217.3(g)(3)). this Part at a rate not to exceed the following schedule: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 335 Original Original Maturity Maturity or or Redemp­ Redemp­ tion tion Period Maximum Per Cent Period Maximum Per Cent 2V2 to 4 For an obligation that is not redeemable 30 days Interest may be paid at the ceilings estabyears prior to maturity, interest may be paid at ofmore lished pursuant to the provisions of § the rate established for 2lh year variable but less 217.7(b) in effect at the time the obligation ceiling time deposits pursuant to the provi­ than 2-V2 is issued, sions of § 217.7(g) in effect at the time the years obligation is issued. For an obligation that (No min­ is redeemable prior to maturity, the maxi­ imum mum rate of interest that may be paid from denomi­ the date of issuance until the first date on nation which the obligation may be redeemed required) shall not exceed the rate established for 2- V2 year variable ceiling time deposits pur­ less than No interest may be paid. suant to the provisions of § 217.7(g) in ef­ 30 days fect at the time the obligation is issued. For a successive period thereafter, inter­ est may be paid during such period until the next date on which the obligation may be redeemed at a rate not to exceed the Credit Restraint rate that would be in effect on the first day of such period for 2lh year variable ceil­ The Board of Governors has adopted a new regula­ ing time deposits established pursuant to tion, Credit Restraint (12 C.F.R. Part 229). The regula­ the provisions of § 217.7(g) in effect at the tion provides: (1) requirements that certain creditors time the obligation was issued. hold a special deposit with the Federal Reserve Banks against increases in the amount of those types of credit 26 weeks For an obligation that is not redeemable outstanding; (2) restraints on the expansion of short or more prior to maturity, interest may be paid at term credit through money market funds and similar but less the rate established for 26-week money creditors: (3) requirements that commercial banks that than 2-V2 market time deposits pursuant to the pro­ are not members of the Federal Reserve System main­ years visions of § 217.7(f) in effect at the time tain a non-interest bearing special deposit with the ($10,000 the obligation is issued. For an obligation Federal Reserve equal to 10 per cent of the amount by mini­ that is redeemable prior to maturity, the which the total of certain managed liabilities of those mum de­ maximum rate of interest that may be paid banks exceeds the amount of such managed liabilities nomina­ from the date of issuance until the first outstanding during a base period: and (4) requirements tion re­ date on which the obligation may be re­ for submission of monthly reports by large U. S. com­ quired) deemed shall not exceed the rate estab­ mercial banks, U. S. branches and agencies of foreign lished for 26-week money market time de­ banks, finance companies, U. S. bank holding com­ posits pursuant to the provisions of § panies and certain selected corporations. 217.7(f) in effect at the time the obligation Effective March 14, 1980, the Board has adopted is issued. For a successive period there­ Credit Restraint (12 C.F.R. Part 229) as set forth be­ after interest may be paid during such pe­ low. The regulation was amended on March 28, 1980, riod until the next date on which the obli­ to revise Subpart B and to add Subpart D. gation may be redeemed at a rate not to exceed the rate that would be in effect on the first day of such period for 26-week money market time deposits established Subpart A —Consumer Credit pursuant to the provisions of § 217.7(f) in effect at the time the obligation was is­ Section 229.1—Authority, Purpose, and Scope sued. (a) Authority. This Subpart is issued by the Board of Governors of the Federal Reserve System pursuant to the Credit Control Act (12 U.S.C. §§ 1901-1909) as im­ Digitized for FRASER http://fraser.stlouisfed.org/ plemented by Executive Order 12201, dated March 14, Federal Reserve Bank of St. Louis 1980.

336 Federal Reserve Bulletin □ April 1980 (b) Purpose and Scope. This Subpart is intended to (g) “Covered creditor” means any creditor which curb inflation generated by the extension of certain extends covered credit. For purposes of determining types of consumer credit in an excessive volume and the amount of a creditor’s outstanding covered credit, governs extensions of such credit by all covered credi­ the covered credit of all U. S. offices of (i) the same tors. company, (ii) U. S. subsidiaries of the same parent company, and (iii) non-U. S. subsidiaries of the same parent company shall be combined. A subsidiary is a Section 229.2—Definitions company that is more than 50 per cent owned directly or indirectly by another company. (a) For the puposes of this subpart, the terms, (h) “Open-end credit” means consumer credit ex­ “Board,” “credit,” “creditor,” “extension of credit” tended on an account pursuant to a plan under which and “credit transaction,” and “loan,” shall have the (1) the creditor may permit the customer to make meanings given them in the Credit Control Act. In ad­ puchases or obtain loans, from time to time, directly dition, the following definitions apply. from the creditor or indirectly by use of a credit card, (b) “Base” means the larger of $2 million or the check, or other device, as the plan may provide; (2) amount of covered credit outstanding as of the close of the customer has the priviledge of paying the balance business on the base date. in full or in installments; and (3) a finance charge may (c) “Base date” means: for a creditor that has daily be computed by the creditor from time to time on an credit data available, March 14, 1980 or the last day outstanding unpaid balance. immediately before March 14, 1980 for which such (i) “U.S.” means the fifty states of the United data are available; for a creditor that does not have States and the District of Columbia. daily credit data available, the period immediately be­ fore March 14, 1980 for which credit data are avail­ able. (d) “Closed-end credit” means all consumer credit Section 229.3—Reports except open-end credit. (e) “Consumer credit” means credit extended in (a) Each covered creditor with $2 million or more of the U. S. primarily for personal, family, or household covered credit outstanding as of the base date, and purposes and does not include credit for business or certain covered creditors as may be required by the agricultural purposes. Board, shall file a base report by April 1, 1980. The (f) “Covered credit” means consumer credit that is base report shall state the amount of the covered cred­ (1) open-end credit and (2) closed-end credit which is itor’s base. A creditor with a base of $2 million or more unsecured or in which the proceeds of the credit are as indicated on its base report, or with covered credit not being used to purchase the collateral. Covered credit outstanding in excess of $2 million on an average basis that is sold or otherwise transferred after March 14, during any calendar month, shall submit monthly re­ 1980 to any office located outside the U. S. of the ports. The initial monthly report shall be filed by May 12, same or another entity shall remain the covered credit 1980, for the period March 15 through April 30, of the transferor until such credit is repaid. Covered 1980; thereafter, the monthly report shall be filed for credit that is sold or otherwise transferred on a re­ each full calendar month by the second Monday of the course basis to any U. S. office of the same of another following month. The monthly report shall include the entity shall remain the covered credit of the transferor; average amount of covered credit outstanding during covered credit that is transferred on a non-recourse the month (on a daily average basis if such data are basis to any U.S. office of the same or another entity available) and the amount by which that number ex­ shall be treated as covered credit of the transferee. ceeds the creditor’s base. Covered credit does not include insurance company (b) One base and one monthly report shall be filed policy loans; credit extended by federal, state or local by a reporting office for all the offices of a covered governments, or by providers of utility, health or edu­ creditor. A covered creditor may designate any of its cation services; state or federal government guaran­ offices as its reporting office. teed loans; or loans secured by savings deposits1 held (c) Members of the Federal Home Loan Banks and at the lending institution. all other savings and loan associations shall file reports with the Federal Home Loan Banks. Credit unions, whether or not members of the National Credit Union Administration’s Central Liquidity Facility, shall file reports with the Central Liquidity Facility. All other creditors shall file reports with the Federal Reserve 1. As defined in § 217.1(e) of this Chapter (Regulation Q). Bank in whose District their reporting office is located. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 337 Section 229.4—M aintenance of term credit, specifically money market funds and other Special Deposit similar creditors. (a) Each covered creditor shall hold a non-interest bearing special deposit equal to 15 per cent of the Section 229.12—Definitions amount by which the average amount of its covered credit outstanding during the calendar month exceeds (a) For the purposes of this Subpart, the terms its base. The corresponding period during which the “credit,” “creditor,” and ’’extension of credit” shall special deposit shall be maintained begins on the have the meanings given them in the Credit Control fourth Thursday of the month following the calendar Act. In addition, the following definitions apply. month for which the report was filed and continues (b) “Base”means: through the Wednesday before the fourth Thursday of (1) for a managed creditor that was a managed the next month. The special deposit shall be main­ creditor on March 14, 1980, the amount of covered tained in collected funds in the form of U. S. dollars. credit it held on March 14, 1980: provided, however, (b) Members of the Federal Home Loan Banks and that a managed creditor (A) that was engaged in all other savings and loan associations shall maintain continuously offering its shares to the public on the special deposit with the Federal Home Loan March 14, 1980, or in the case of a collective in­ Banks. Credit unions, whether or not members of the vestment fund or closed end investment company, National Credit Union Administration’s Central Li­ held investment assets on March 14, 1980, and (B) quidity Facility, shall maintain the special deposit with that held less than $100 million in total extensions the Central Liquidity Facility. Deposits maintained of credit on March 14, 1980, may calculate its base with the Federal Home Loan Banks and the Central as if it held $100 million in total extensions of credit Liquidity Facility shall be placed with a Federal Re­ on March 14, 1980. serve Bank. All other creditors shall maintain the spe­ (2) for a managed creditor that becomes a man­ cial deposit with the Federal Reserve Bank to which aged creditor after March 14, 1980, the amount of the creditor reports. covered credit with maturities of 13 months or less that it held on March 14, 1980; and (3) for a unit investment trust in existence on Section 229.5—Penalties March 14, 1980, the amount of covered credit it held on the date it acquired investment assets; For each willful violation of this Subpart, the Board (4) for a unit investment trust established after may assess against any creditor, or officer, director or March 14, 1980, zero: provided, however, that a unit employee thereof who willfully participates in the vio­ investment trust shall have a base equal to the lation, a maximum civil penalty of $1,000. In addition, amount of covered credit it held on the date it ac­ a maximum criminal penalty of $ 1,000 and imprison­ quired investment assets if (A) the sales charges and ment of up to one year may be imposed for willful vio­ other fees of the unit investment trust are sub­ lation of this Subpart. stantially identical to those of previous trusts of the same sponsor, and (B) the units are held (i) entirely by persons who held units in an expiring trust of the Subpart B —Short Term Financial same sponsor with a base equal to the amount of its Intermediaries covered credit, and (ii) in amounts not exceeding the individual holdings of such persons in expiring Section 229.11—Authority, Purpose, and Scope trusts. (c) “Covered credit” means all extensions of credit (a) Authority. This Subpart is issued by the Board originated through the acquisition of a security, depos­ of Governors of the Federal Reserve System pursuant it, or other instrument,1 including but not not limited to the Credit Control Act (12 U.S.C. §§ 1901 - 1909), as to domestic and Eurodollar certificates of deposit, implemented by Executive Order 12201. U.S. Treasury bills, repurchase agreements, com­ mercial paper, bankers acceptances, and State and lo­ (b) Purpose and Scope. This Subpart is intended to cal government obligations, and any interest accrued curb inflation generated by the extension of credit by thereon, held as assets by a covered creditor, multicertain of those financial intermediaries that are not subject to either the amendments of law effected by Pub. L. 89-597, as amended, or section 19 of the Fed­ 1. Assets should be valued for purposes of this Subpart by the same procedure used by a registered investment company to value assets in eral Reserve Act, as amended (12 U.S.C. § 461), and calculating net share or unit value under the Investment Company Act that are primarily engaged in the extension of short­ of 1940 and rules promulgated thereunder. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 Federal Reserve Bulletin □ April 1980 plied by the proportion of shares, units, or other inter­ shall file a base report and weekly reports. The base ests in a covered creditor not held (1) by a bank, trust report shall state the amount of the covered creditor’s company or other fiduciary provided all moneys in­ base and shall be submitted no later than April 8, 1980, vested therein would be eligible for collective invest­ or in the case of a managed creditor that becomes a ment by a bank in its capacity as a trustee executor, managed creditor or begins holding covered credit af­ administrator or guardian, and are held incidentally to ter March 14, 1980, within one week of aquiring or the management of other trust assets, or (2) by or as holding assets of accepting trust moneys that require it agent for the trustee of a retirement, pension, profit to file reports. Weekly reports shall be filed for report­ sharing, stock bonus, or other trust that is exempt ing periods which begin on Monday and end on the from Federal income taxation under the Internal Reve­ following Sunday, and shall state the amount by which nue Code and whose funds are eligible for collective the average of the daily amounts of covered credit out­ investment by a bank. To determine its covered credit, standing during the reporting period exceeds the base. a covered creditor whose stated investment objective Reports for the reporting periods beginning March 17, is to invest 80 per cent or more of its assets in obliga­ 24, and 31, 1980, shall be submitted by close of busi­ tions of State and local Governments and agencies and ness on April 10, 1980. Reports for each succeeding subdivisions thereof, the income from which are ex­ period, or in the case of a covered creditor that be­ empt from Federal income taxation, shall further mul­ comes a covered creditor after March 14, for each full tiply its covered credit as determined above by the reporting period after it becomes a covered creditor, proportion of its extensions of credit that are not tax shall be filed by close of business on the first Wednes­ exempt. day following the reporting period. (d) “Covered creditor” means any creditor (1) that (b) A covered creditor that is a unit investment trust is (A) an investment company registered with the established after March 14, 1980, shall file a base re­ Securities and Exchange Commission under the In­ port stating its base and the amount of covered credit it vestment Company Act of 1940, (B) any series of holds. This report shall be filed 2 days prior to acquisi­ shares or units of such a company, or (C) any collec­ tion of investment assets by the unit investment trust. tive investment fund maintained by a bank or trust (c) All reports shall be filed with the Federal Re­ company; and (2) whose investment portfolio consists serve Bank in the District where the covered creditor primarily of securities, deposits or other instruments has its principal place of business. with maturities of 13 months or less,2 including but not limited to domestic and Eurodollar certificates of de­ posits, U.S. Treasury bills, repurchase agreements, Section 229.14—M aintenance of commercial paper, and State and local obligations. Special Deposit However, a unit investment trust is not a covered creditor unless its investment portfolio consists pri­ (a)(1) Each managed creditor that holds covered marily of securities, deposits, or other instruments credit shall maintain a non-interest bearing special de­ with maturities of 13 months or less2 at the time the posit equal to 15 per cent of the amount by which the unit investment trust acquires those assets. average of the daily amounts of its covered credit out­ (e) “Managed creditor” means any covered credi­ standing during each reporting period exceeds its base. tor that is not a unit investment trust. (2) During the seven-day deposit maintenance pe­ (f) “Unit investment trust” means any unit invest­ riod beginning April 14, 1980, each managed creditor ment trust as defined in the Investment Company Act shall maintain a special deposit equal to the sum of the of 1940, or a series of units of such a trust. special deposits required for the reporting periods (g) “Collective investment fund” means collective beginning March 17, March 24, and March 31. During investment fund as defined in section 9.18 of regula­ the seven-day deposit maintenance period beginning tions of the Comptroller of the Currency (12 C.F.R. § April 21, 1980, and for each seven-day deposit main­ 9.18). tenance period thereafter, each managed creditor shall (h) “Security” means any security as defined in the maintain the special deposit required for the reporting Securities Act of 1933. period ending eight days prior to the beginning of the corresponding deposit maintenance period. (b) Each covered creditor that is a unit investment Section 229.13—Reports trust established after March 14, 1980, shall maintain a non-interest bearing special deposit equal to 15 per (a) Each managed creditor that holds covered credit cent of the amount by which the covered credit it holds as of the date it acquires investment assets exceeds its 2. This includes variable rate securities, deposits or other in­ base. This special deposit shall be maintained during struments with longer nominal maturities but with interest rates sub­ ject to adjustment at intervals shorter than 13 months. the period beginning the day the covered creditor ac­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 339 quires assets consisting of covered credit and ending Section 229.23—Reports one day prior to final distribution of trust assets by the trustee pursuant to the terms of the trust agreement. Each covered bank shall file with the Federal Re­ Upon two weeks notice, the special deposit will be re­ serve Bank for the Federal Reserve district in which turned to the trustee one day prior to maturity or final its head office is located such reports as shall be re­ distribution pursuant to the terms of the trust agree­ quired in connection with the maintenance of a special ment. The deposit may also be returned pro rata in the deposit under this Subpart. event of redemption of units of the trust. (c) Special deposits shall be maintained in collected funds in the form of U.S. dollars at the Federal Re­ Section 229.24—M aintenance of serve Bank to which the covered creditor reports. Special Deposit (a) During the seven-day deposit maintenance peri­ od beginning April 17, 1980, each covered bank shall Section 229.15—Penalties maintain a non-interest bearing special deposit equal to 10 per cent of the sum of the amounts by which the For each willful violation of this Part, the Board may daily average of its total managed liabilities during assess against any creditor, or officer, director or em­ each of the seven-day computation periods beginning ployee thereof who willfully participates in the viola­ March 20 and 27, and April 3, 1980, exceeds its man­ tion, a maximum civil penalty of $1,000. In addition, a aged liabilities base as determined in accordance with maximum criminal penalty of $1,000 and imprison­ paragraph (b). During the seven-day deposit mainte­ ment of one year may be imposed for willful violation nance period beginning April 24, 1980, and each de­ of this Part. posit maintenance period thereafter, each covered bank shall maintain a non-interest bearing special de­ posit equal to 10 per cent of the amount by which the daily average of its total managed liabilities during the Subpart C — Nonm em ber Commercial Banks seven-day computation period ending eight days prior to the beginning of the corresponding seven-day de­ Section 229.21—Authority, Purpose, and Scope posit maintenance period exceeds its managed liabili­ ties base as determined in accordance with paragraph (a) Authority. This Subpart is issued by the Board (b). A covered bank’s managed liabilities are the total of Governors of the Federal Reserve System pursuant of the following: to the Credit Control Act (12 U.S.C. §§ 1901-1909), as (1)(A) time deposits of $100,000 or more with implemented by Executive Order 12201. original maturities of less than one year; (B) time deposits of $100,000 or more with (b) Purpose and Scope. This Subpart is intended to original maturities of less than one year represent­ curb inflation by controlling the expansion of credit ex­ ing borrowings in the form of promissory notes, tended by commercial banks that are not members of acknowledgments of advance, due bills, or similar the Federal Reserve System that is supported by ex­ obligations as provided in § 204.1(f) of Regulation tensions of credit to those banks in the form of man­ D; and aged liabilities. (C) time deposits with remaining maturities of less than one year represented by ineligible bank­ ers’ acceptances or obligations issued by a bank’s affiliate, as provided in § 204.1(f) of Regulation D. Section 229.22—Definitions However, managed liabilities do not include sav­ ings deposits, or time deposits, open account that (a) For the purposes of this Subpart, the terms constitute deposits of individuals, such as Christ­ “credit,” and “extension of credit” shall have the mas club accounts and vacation club accounts meanings given them in the Credit Control Act. In ad­ that are made under written contracts providing dition, the following definitions apply. that no withdrawal shall be made until a certain (b) “Covered bank” means any commercial bank number of periodic deposits have been made dur­ that is not a member of the Federal Reserve System, ing a period of not less than three months; or required to maintain reserves under the Federal Re­ (2) any obligation with an original maturity of less serve Act. than one year that is issued or undertaken as a (c) “Member bank” means any bank that is a mem­ means of obtaining funds to be used in its banking ber of the Federal Reserve System. business in the form of a promissory note, acknowl­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 Federal Reserve Bulletin □ April 1980 edgment of advance, due bill, ineligible bankers’ ac­ its foreign branches to U.S. residents3 (other than ceptance, repurchase agreement (except on a U.S. assets acquired and net balances due from its do­ or agency security), or similar obligation (written or mestic offices). Provided, That this paragraph does oral) issued to and held for the account of a domestic not apply to credit extended (1) in the aggregate banking office or agency1 of another commercial amount of $100,000 or less to any United States resi­ bank or trust company that is not required to main­ dent, (2) by a foreign branch which at no time during tain reserves pursuant to Regulation D, a savings the computation period had credit outstanding to bank (mutual or stock), a building or savings and United States residents exceeding $1 million, (3) un­ loan association, a cooperative bank, a credit union, der binding commitments entered into before May 17, or an agency of the United States, the Export-Im­ 1973, or (4) an institution that will be maintain­ port Bank of the United States, Minbanc Capital ing reserves on such credit under paragraphs (c) or Corporation and the Government Development (f) of section 204.5 of Regulation D or under Regula­ Bank for Puerto Rico; tion K. (3) any obligation with an original maturity of less than one year that is issued or undertaken as a (b) Managed liabilities base. During the seven-day means of obtaining funds to be used in its banking deposit computation period beginning March 20, 1980, business in the form of a repurchase agreement aris­ and during each seven-day deposit computation period ing from a transfer of direct obligations of, or obliga­ thereafter, the managed liabilities base of a covered tions that are fully guaranteed as to principal and bank shall be determined as follows: interest by, the United States or any agency thereof (1) For a covered bank that, on a daily average that the institution is obligated to repurchase except basis, is a net borrower of total managed liabilities repurchase agreements issued to a domestic banking during the fourteen-day base period ending March 12, office or agency of a member bank, or other organi­ 1980, its managed liabilities base shall be the dai­ zation that is required to maintain reserves under ly average of its total managed liabilities during the Regulation D pursuant to the Federal Reserve Act,2 base period reduced by the amount by which its low­ to the extent that the amount of such repurchase est daily average of gross loans to non-United States agreements exceeds the total amount of United residents3 and gross balances due from foreign of­ States and agency securities held by the covered fices of other institutions4 or institutions the time de­ bank in its trading account; posits of which are exempt from the rate limitations (4) any obligation that arises from a borrowing by or Regulation Q pursuant to § 217.3(g) thereof5 out­ a covered bank from a dealer in securities that is not standing during any computation period after March a member bank or other organization that is required 12, 1980, is lower than the daily average amount of to maintain reserves pursuant to Regulation D,2 for such loans and balances outstanding during the base one business day, of proceeds to a transfer of depos­ period. The amount of the reduction shall be round­ it credit in a Federal Reserve Bank (or other imme­ ed down to the largest lower multiple of $2 million. diately available funds), received by such dealer on However, in no event will the managed liabilities the date of the loan in connection with clearance of base for a covered bank that was a net borrower of securities transactions; managed liabilities during the fourteen-day base pe­ (5) borrowings with an original maturity of less riod ending March 12, 1980, be less than $100 mil­ than one year from foreign offices of other banks and lion. from institutions that are exempt from interest rate 3. A United States resident is: (a) any individual residing (at the limitations pursuant to § 217.3(g) of Regulation Q; time the credit is extended) in any State of the United States or the (6) net balances due from the covered bank’s do­ District of Columbia; (b) any corporation, partnership, association or mestic offices to its foreign branches; other entity organized therein (“domestic corporation”); and (c) any branch or office located therein or any other entity wherever orga­ (7) liabilities of a foreign branch of the covered nized. Credit extended to a foreign branch, office, subsidiary, affiliate bank to the extent that the foreign branch holds as­ or other foreign establishment (“foreign affiliate”) controlled by one or more such domestic corporations will not be deemed to be credit sets (including participations) acquired from the extended to a United States resident if the proceeds will be used in its covered bank’s domestic offices; and foreign business or that of other foreign affiliates of the controlling (8) liabilities of a foreign branch of the covered domestic corporation(s). 4. Any banking office located outside the States of the United bank to the extent that it has credit outstanding from States and the District of Columbia of a bank organized under domes­ tic or foreign law. 1. Any banking office or agency in any State of the United States or 5. A foreign central bank, or any international organization, of the District of Columbia of a bank organized under domestic or foreign which the United States is a member, such as the International Bank law. for Reconstruction and Development (World Bank), International 2. Edge Corporations engaged in banking, Agreement Corpora­ Monetary Fund, Inter-American Development Bank, and other for­ tions, operations subsidiaries of member banks and U.S. branches and eign international, or supranational entities exempt from interest rate agencies of foreign banks with worldwide banking assets in excess of limitations under § 217.3(g)(3) of Regulation Q (12 C.F.R. § $1 billion. 217.3(g)(3)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 341 (2) For a covered bank that, on a daily average ity-owned bank subsidiaries not chartered in the basis, is a net lender of total managed liabilities dur­ United States. ing the fourteen-day base period ending March 12, (c) “Financial corporation” means any company 1980, its managed liabilities base shall be the sum of chartered in the U.S. or having its principal place of its daily average negative total managed liabilities business in the U.S., whose primary business is mak­ and $100 million. ing loans or which is registered as a broker-dealer un­ (c) The special deposit shall be maintained at the der the Securities and Exchange Act of 1934. A finan­ Federal Reserve Bank to which the covered bank re­ cial corporation does not include a commercial bank or ports. The special deposit must be maintained in col­ bank holding company. lected funds in the form of U.S. dollars. (d) “Nonfinancial corporation” means any compa­ ny chartered in the U.S. or having its principal place of business in the U.S. that is not a financial corporation, Section 229.25—Penalties commercial bank or bank holding company. (e) “United States” means the United States, any For each willfull violation of this Part, the Board of the 50 States of the United States and the District of may assess against any creditor, or officer, director or Columbia. employee thereof who willfully participates in the vio­ (f) “U.S.” means the United States, and its terri­ lation, a maximum civil penalty of $1,000. In addition, tories and possessions. a maximum criminal penalty of $ 1,000 and imprison­ (g) “U.S. finance company” means a company ment of one year may be imposed for willful violation chartered in the U.S. or having its principal place of of this Part. business in the U.S., whose primary business is mak­ ing loans for personal or business purposes. For the purposes of this definition, a finance company that is Subpart D —Reports under Special Credit owned by a non-finance company parent (including a Restraint Program bank holding company) is regarded as a separate entity together with its finance company subsidiaries. A fi­ Section 229.31—Authority, Purpose nance company does not include commercial banks, and Scope credit unions, savings and loan associations, coopera­ tive banks, mutual savings banks or mortgage com­ (a) Authority. This Subpart is issued by the Board panies. of Governors of the Federal Reserve System pursuant to the Credit Control Act (12 U.S.C. §§ 1901-1909) as implemented by Executive Order 12201, dated March 14, Section 229.33—M onthly Reports 1980. (a) Large Commercial banks. Each U.S. com­ (b) Purpose and Scope. This Subpart implements mercial bank having U.S. consolidated assets of $1 bil­ the reporting provisions of the Board’s Special Credit lion or more shall file monthly with the Board a report Restraint Program, announced on March 14, 1980, to on its activities on forms prescribed by the Board in enable the Board to monitor compliance with the Pro­ accordance with the instructions thereto. gram, as well as developments in the credit markets. (b) U.S. agencies and branches of foreign banks. Each family of U.S. offices of a foreign bank having worldwide banking assets of more than $1 billion Section 229.32—Definitions monthly shall file with the Board a report on its activi­ ties on forms prescribed by the Board in accordance For the purposes of this Subpart, the terms “Board,” with the instructions thereto. and “loan” shall have the meanings given them in the Credit Control Act. In addition the following defini­ (c) U.S. bank holding companies. Each U.S. bank tions apply: holding company with U.S. consolidated financial as­ (a) “Commercial bank” means any commercial sets of $1 billion or more shall file monthly with the bank chartered under the laws of the United States, Board a report on its activities on forms prescribed by including its overseas offices, branches, agencies and the Board in accordance with the instructions thereto. subsidiaries. (b) “Family of offices of a foreign bank” means all (d) U.S. finance companies. Each U.S. finance branches and agencies located in the United States of a company with total business receivables outstanding bank not chartered in the United States and its major­ (that is, all loans excluding those made for personal, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 Federal Reserve Bulletin □ April 1980 family or household uses) of $1 billion or more shall agency borrowing from the Federal Reserve discount file monthly with the Board a report of its activities on window. forms prescribed by the Board in accordance with the Effective September 4, 1980, Regulations A, D, K instructions thereto. and Q are amended as follows: (e) Selected corporations. Each financial corpora­ tion that has commercial paper outstanding of $1 bil­ Regulation A lion or more and each non-financial corporation having commercial paper outstanding of $30 million or more 1. Section 201.1 is amended to read as follows: or having annual worldwide revenues of $2 billion or more shall file with the Board a monthly report on its activities on forms prescribed by the Board in accord­ Section 201.1—Authority and Scope ance with the instructions thereto. This Part is issued under the authority of section 13 (12 U.S.C. §§ 343 et seq.) and other provisions of the Section 229.34—Quarterly Reports by Federal Reserve Act and relates to extensions of credit Small Commercial Banks by Federal Reserve Banks. Except as may be other­ wise provided, this Part shall be applicable to United Each U.S. commercial bank with U.S. consolidated States branches and agencies of foreign banks subject assets of $300 million or more but less than $1 billion to reserve requirements under 12 CFR Part 204 in the shall file quarterly with the Board a report on its activi­ same manner and to the same extent as to member ties on forms prescribed by the Board in accordance banks. with the instructions thereto. Regulation D Section 229.35—Penalties 2. A new section 204.0 is added as follows: For each willful violation of this Subpart, the Board may assess against any creditor, or officer, director or employee thereof who willfully participates in the vio­ Section 204.0—Authority and Scope lation, a maximum civil penalty of $1,000. In addition, a maximum criminal penalty of $1,000 or imprison­ (a) This Part is issued under the authority of section ment of one year may be imposed for willful violation 19 (12 U.S.C. §§ 461 et seq.) and other provisions of of this Subpart. the Federal Reserve Act and of section 7 of the Inter­ national Banking Act of 1978 (12 U.S.C. § 3105). (b) This Part relates to the reserves that member banks are required to maintain against deposits. A for­ Amendments to Regulations A, D, K } eign bank’s branch or agency located in the States of and Q the United States or the District of Columbia is re­ quired to comply with the provisions of this Part in the Section 7 of the International Banking Act of 1978 same manner and to the same extent as if the branch or (“IBA”) imposes Federal reserve requirements and agency were a member bank, except as may be other­ deposit interest rate limitations on Federal branches wise provided by the Board, if (i) its parent foreign and agencies of parent foreign banks with total world­ bank has total worldwide consolidated bank assets in wide consolidated bank assets in excess of $1 billion excess of $1 billion; (ii) its parent foreign bank is con­ and authorizes the Board to impose such requirements trolled by a foreign company which owns or controls on State branches and agencies of parent foreign banks foreign banks that in the aggregate have total world­ with total worldwide consolidated bank assets in ex­ wide consolidated bank assets in excess of $1 billion; cess of $1 billion. To implement the provisions of the or (iii) its parent foreign bank is controlled by a group IB A, the Board of Governors has amended Regulation of foreign companies that own or control foreign banks D (Reserves of Member Banks) and Regulation Q (In­ that in the aggregate have total worldwide consoli­ terest on Deposits) to apply Federal reserve require­ dated bank assets in excess of $1 billion. ments and interest rate limitations currently applicable (c) The provisions of this Part do not apply to any to member banks to such branches and agencies. Reg­ deposit that is payable only at an office located outside ulation A (Extensions of Credit by Federal Reserve the States of the United States and the District of Co­ Banks) has been amended to facilitate branch and lumbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 343 3. Section 204.1 is amended to read as follows: from the amount of gross demand deposits. However, United States branches and agencies of a foreign bank may not deduct balances due from another United Section 204.1—Definitions States branch or agency of the same foreign bank, and United States offices of an Edge Corporation may not deduct balances due from another United States office of the same Edge Corporation. Balances “due from (b) Time deposits. *** “Time deposits” does not in­ other banks” do not include balances due from Feder­ clude the liability of a United States branch or agency al Reserve Banks, or balances (payable in dollars or of a foreign bank to another United States branch or otherwise) due from banking offices located outside agency of the same foreign bank, or the liability of a the States of the United States and the District of Co­ United States office of an Edge Corporation to another lumbia.10 United States office of the same Edge Corporation. 5. Section 204.3 is amended to read as follows: (g) Gross demand deposits. *** “Gross demand de­ posits” also includes officers’ checks issued by or drawn by a United States branch or agency of a foreign Section 204.3—Deficiencies in Reserves bank, including checks drawn as agent for or on behalf of its foreign bank or offices thereof located outside the States of the United States and the District of Colum­ bia. “Gross demand deposits” does not include the li­ (e) United States branches and agencies of foreign ability of a United States branch or agency to another banks. A foreign bank’s United States branches and United States branch or agency of the same foreign agencies operating within the same State and within bank, or the liability of a United States office of an the same Federal Reserve District shall prepare and Edge Corporation to another United States office of file a Report of Deposits on an aggregated basis, shall the same Edge Corporation. maintain required reserves with the Federal Reserve Bank of their District, and shall be assessed penalties % % in accordance with the provisions of paragraphs (a) through (d) of this section. (k) Credit balances. For purposes of this Part, the term “deposits” also includes the credit balances of a (f) Edge Corporations. An Edge Corporation’s of­ United States branch or agency of a foreign bank. fices operating within the same State and within the same Federal Reserve District shall prepare and file a (1) Foreign bank. “Foreign bank” means any bank Report of Deposits on an aggregated basis, shall main­ organized under the laws of any country other than the tain required reserves with the Federal Reserve Bank United States (including its States and the District of of their District, and shall be assessed penalties in ac­ Columbia), or organized under the laws of Puerto cordance with the provisions of paragraphs (a) through Rico, Guam, American Samoa, the Virgin Islands, ora (d) of this section. territory or possession of the United States. 6. Section 204.5 is amended to read as follows: 4. Section 204.2 is revised to read as follows: Section 204.5—Reserve Requirem ents Section 204.2—Com putation of Reserves (a) Reserve Percentages. *** In determining the de­ posits of United States branches and agencies of for­ eign banks against which reserve balances are required (b) Deductions allowed in computing reserves. In to be maintained, the deposits of United States determining the reserve balances required under the branches and agencies of a foreign bank shall be aggre­ terms of this Part, the amounts of balances subject to gated for all offices operating within the same State immediate withdrawal due from other banks, including and within the same Federal Reserve District. In desuch amounts due from United States branches and agencies of foreign banks, and cash items in process of 10 * * * collection as defined in § 204.1(h) may be deducted Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 Federal Reserve Bulletin □ April 1980 termining the deposits of United States offices of Edge branch or agency (other than assets required to be Corporations against which reserve balances are re­ sold by Federal or State supervisory authorities or quired to be maintained, the deposits of United States assets representing credit extended to persons not offices of an Edge Corporation shall be aggregated for residents of the United States13) during the com­ all offices operating within the same State and within putation period ending on the Wednesday eight the same Federal Reserve District. days before the beginning of the maintenance pe­ riod. Reserves that may be required against assets sold to nonbanking affiliates under § 204.1(f) of this section shall be maintained in accordance (d) Foreign branch transactions with parent bank. with § 204.5(a) of this section. (1) Member banks. During each week of the four- (e) Foreign branch credit extended to United week period beginning May 22, 1975, and during States residents. *** This paragraph does not apply to each week of each successive four-week (“mainte­ United States branches and agencies of foreign banks. nance”) period, a member bank having one or more foreign branches shall maintain with the Reserve Bank of its District, as a reserve against its foreign branch deposits, a daily average balance equal to zero per cent of the daily average total of— (i) net balances due from its domestic offices to Regulation K such branches, and (ii) assets (including participations) held by 7. Section 211.4(d) of Regulation K (International such branches which were acquired from its do­ Banking Operations) is revised as follows: mestic offices (other than assets representing credit extended to persons not residents of the United States), during the four-week computation Section 211.4—Edge and period ending on the Wednesday fifteen days be­ Agreement Corporations fore the beginning of the maintenance period. (2) United States branches and agencies of for­ eign banks. During each reserve maintenance peri­ (d) Reserve requirements and interest rate limita­ od, a United States branch or agency of a foreign tions. The deposits of an Edge Corporation are subject bank shall maintain a reserve against its deposits to the reserve requirements of Part 204 (Regulation D) equal to a daily average balance of zero per cent of and the interest rate limitations of Part 217 (Regulation the daily average total of— Q) in the same manner and to the same extent as if the (i) net balances due to its foreign bank (includ­ Edge Corporation were a member bank, except as may ing offices thereof located outside the States of the be otherwise provided by the Board. United States and the District of Columbia) after deducting an amount equal to 8 per cent of the United States branch’s or agency’s total assets less United States coin and currency, cash items Regulation Q in the process of collection and unposted debits, balances due from domestic banks and other for­ 8. Section 217.0 is amended as follows: eign banks, balances due from foreign central banks, and net balances due from its foreign bank and its United States and non-United States of­ fices, however, the amount that may be deducted may not exceed net balances due to the foreign bank (including offices thereof located outside the 13. A United States resident is: (a) Any individual residing (at the time the credit is extended) in any State of the United States or the States of the United States and the District of Co­ District of Columbia; (b) any corporation, partnership, association or lumbia), and other entity organized therein (“domestic corporation”); and (c) any branch or office located therein of any other entity wherever orga­ (ii) assets (including participations) held by its nized. Credit extended to a foreign branch, office, subsidiary, affiliate foreign bank (including offices of the foreign bank or other foreign establishment (“foreign affiliate”) controlled by one located outside the States of the United States and or more such domestic corporations will not be deemed to be credit extended to a United States resident if the proceeds will be used in its the District of Columbia or its parent holding com­ foreign business or that of other foreign affiliates of the controlling pany that were acquired from the United States domestic corporation(s). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 345 Section 217.0—Authority and Scope Effective June 2, 1980, the Board amends sections 220.3 and 220.4: 1. To amend section 220.3(b)(l)(i) and (ii) by delet­ ing the words “5 full business days” and substituting (c) Under authority of the provisions of section 7 of therefor the words “7 full business days” ; the International Banking Act of 1978 (12 U.S.C. 2. To amend section 220.3(e) by deleting the words § 3105), the provisions of this Part apply to a Federal “5-day period” and substituting therefor the words branch or agency of a foreign bank and to a State unin­ “7-day period” ; sured branch or agency of a foreign bank in the same 3. To revise section 220.3(f) to read as follows: manner and to the same extent as if the branch or agency were a member bank, except as may be other­ wise provided by the Board, if (i) its parent foreign Section 220.3—General Accounts bank has total worldwide consolidated bank assets in excess of $1 billion; (ii) its parent foreign bank is con­ trolled by a foreign company which owns or controls foreign banks that in the aggregate have total world­ (f) Extensions of time. If an appropriate com­ wide consolidated bank assets in excess of $1 billion; mittee of a national securities exchange or a national or (iii) its parent foreign bank is controlled by a group securities association is satisfied that the creditor is of foreign companies that own or control foreign banks acting in good faith in making the application, and that in the aggregate have total worldwide consoli­ that exceptional circumstances warrant such action, dated bank assets in excess of $1 billion. such committee may extend the 7-day period speci­ (d) The provisions of this Part do not apply to any fied in paragraph (b) of this section for one or more deposit that is payable only at an office located outside limited periods commensurate with the circum­ of the States of the United States and the District of stances. Applications should be filed and acted upon Columbia of a member bank or of a foreign bank. prior to the end of the 7-day period or the expiration of any subsequent extension. However, an appli­ 9. Section 217.1 is amended by adding the follow­ cation may be accepted as timely filed from firms ing: having no direct electronic access to the exchange or association if it is postmarked no later than mid­ night of the last day of the 7-day period or any sub­ Section 217.1—Definitions sequent extension. 4. To amend section 220.3(g)(3) by deleting the fig­ ure “$100” and substituting therefor the figure “$500” ; (i) Credit balances. For purposes of this Part, the term “deposits” also includes the credit balances of a 5. To revise section 220.4(c)(6) to read as follows: United States branch or agency of a foreign bank. (j) Foreign bank. “Foreign bank” means any bank Section 220.4—Special Accounts organized under the laws of any country other than the United States (including its States and the District of Columbia), or organized under the laws of Puerto Rico, Guam, American Samoa, the Virgin Islands, or a (c) Special cash account. territory of the United States. (6) If an appropriate committee of a national Amendments to Regulation T securities exchange or a national securities associ­ ation is satisfied that the creditor is acting in good The Board of Governors has amended its Regulation faith in making the application, that the appli­ T (Credit by Brokers and Dealers) to reduce the ad­ cation relates to a bona fide cash transaction, and ministrative burden placed on broker-dealers and their that exceptional circumstances warrant such ac­ self-regulatory organizations by recognizing the geo­ tion, such committee (i) may extend any period graphic dispersion of the financial community and re­ specified in subparagraphs (2), (3), (4), or (5) of cent developments in information processing tech­ this paragraph for one or more limited periods nology. commensurate with the circumstances, or (ii), in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 Federal Reserve Bulletin □ April 1980 case a security purchased by the customer in the has been given in accordance with section 3(b) of the special cash account is a margin or exempted Act. The time for filing comments and views has ex­ security, may authorize the transfer of the trans­ pired and the Board has considered the application and actions to a general account, special bond ac­ all comments received in light of the factors set forth in count, special convertible security account, or section 3(c) of the Act (12 U.S.C. § 1842(c)). special omnibus account, and the completion of Applicant, the fourth largest commercial banking or­ such transaction pursuant to the provisions of this ganization in Florida, controls 26 subsidiary banks part relating to such an account. Applications un­ with aggregate deposits of $1.6 billion, representing der (i) above should be filed and acted upon prior 5.0 percent of total deposits in commercial banks in to the end of the 7-day period or the expiration of the state.1 Acquisition of Stuart Bank and Port Salerno any subsequent extension. However, an appli­ Bank, with deposits of $90.4 million and $16.1 million, cation may be accepted as timely filed from firms respectively, would increase Applicant’s share of having no direct electronic access to the exchange commercial bank deposits in Florida by 0.3 percent or association if it is postmarked no later than and would not have an appreciable effect upon the midnight of the last day of the 7-day period or any concentration of banking resources in the state. subsequent extension. Stuart Bank is the second largest of six commercial banks in the relevant banking market,2 and controls approximately 30 percent of deposits in the market. Port Salerno Bank is the fifth largest bank in the mar­ 6. To amend section 220.4(c)(7) by deleting the fig­ ket and controls 5.0 percent of commercial bank de­ ure “$100” and substituting therefor the figure posits in the market. While consummation of the trans­ “$500” . action would appear to eliminate competition between 7. To amend section 220.4(h)(2) by deleting the Banks, the Board notes that principals of Stuart Bank words “5 full business days” and substituting therefor organized Port Salerno Bank de novo in 1973 and that the words “7 full business days” ; there is also a significant degree of common ownership of Banks. Moreover, there exist numerous long­ standing director and officer interlocks between the Bank H olding Company and Bank M erger Banks.3 In view of the relationship that exists between Orders Issued by the Board of Governors Banks, and has existed since Port Salerno Bank was established, it appears that there is little, if any, cur­ Orders Under Section 3 of Bank Holding rent meaningful competition between Banks and that Company Act consummation of the proposal would not result in any elimination of existing competition between Banks. In Florida National Banks of Florida, Inc., addition, Applicant’s nearest subsidiary bank is lo­ Jacksonville, Florida cated more than 20 miles north of Banks and competes in a separate banking market. The Board also notes Order Approving Acquisition of Banks that Florida National Credit Corporation, a subsidiary of Applicant engaged in equipment leasing and financ­ Florida National Banks of Florida, Inc., Jacksonville, ing, is authorized to conduct business throughout Flor­ Florida, a bank holding company within the meaning ida but derives no loans from the service areas of of the Bank Holding Company Act of 1956 (the Banks. Therefore, the Board concludes that consum­ “Act”), has applied for the Board’s approval under mation of the acquisitions would have no adverse ef­ section 3(a)(3) of the Act (12 U.S.C. §1842 (a)(3)) to fects on existing competition in any relevant area. Al­ acquire 100 per cent (less directors’ qualifying shares) though some potential competition would be of Florida National Bank of Martin County, Stuart, eliminated in the relevant market by consummation of Florida, the successor by merger to Stuart National the transaction, there are numerous other potential en­ Bank (“Stuart Bank”), Stuart, Florida, and Port Sa­ trants into the market. In light of all the facts of record, lerno National Bank (“Port Salerno Bank”), Port Sa­ the Board concludes that the transaction would have lerno, Florida (collectively referred to as “Banks”). only a slightly adverse effect on competition in the The bank into which Stuart Bank and Port Salerno market. Bank are to be merged has no significance except as a means to facilitate the acquisition of voting shares of 1. All banking data are as of December 31, 1978. Banks. Accordingly, the application is treated herein 2. The relevant banking market is approximated by East Martin as an application for the aquisition of shares of Banks. County, Florida. 3. Together Banks control $106.5 million in deposits, representing Notice of the application, affording an opportunity 35.0 percent of deposits in the market. Banks are thus the second larg­ for interested persons to submit comments and views est banking organization in the market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 347 The financial and managerial resources of Appli­ effect on potential competition which is not out­ cant, its subsidiaries, and Banks are considered satis­ weighed by convenience and needs considerations. In factory and the future prospects for each appear favor­ my view, approval of this application will continue to able. Thus, considerations relating to banking factors encourage large organizations to attempt to enter new are consistent with approval of the application. Affilia­ markets by means of significant acquisitions rather tion with Applicant will enable Martin County Bank, than through the more competitive methods of de novo the successor by merger to Banks, to offer expanded or foothold entry. trust and fund management services not now available In this case, the fourth largest banking organization to customers of Banks. Applicant intends to establish in Florida is seeking to acquire two affiliated banks a revolving credit plan with overdraft protection and which together constitute the second largest banking plans to introduce automated teller machines at organization in the relevant market. Applicant is a Banks. In addition, Banks will have access to Appli­ large, well-managed organization, fully capable of en­ cant’s expertise in consumer lending and credit admin­ tering this market in a less anti-competitive manner. istration. Considerations relating to the convenience The market is growing rapidly and appears to be rela­ and needs of the community to be served lend weight tively attractive to de novo entry by large organiza­ toward approval of the application and are sufficient to tions such as Applicant. In addition, there exists in the outweigh any slightly adverse effects on competition market a small independent organization that could that might result from consummation of the proposal. provide Applicant with a foothold entry in the market. Accordingly, it is the Board’s judgment that the pro­ Moreover, acquisition of Banks would remove them as posed acquisition would be in the public interest and potential market entry vehicles for smaller bank hold­ that the application should be approved. ing companies that have neither the financial nor man­ On the basis of the record, the application is ap­ agerial resources to enter the market de novo. Conve­ proved for the reasons summarized above. The trans­ nience and needs considerations do not outweigh the action shall not be made before the thirtieth calendar substantially adverse competitive effects associated day following the effective date of this Order or later with the proposal. For these reasons, I would deny than three months after the effective date of this Order this application. unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Atlanta pur­ March 6, 1980 suant to delegated authority. By Order of the Board of Governors, effective March 6, 1980. The M arine Corporation, Voting for this action: Vice Chairman Schultz and Gov­ M ilwaukee, W isconsin ernors Wallich, Partee, and Rice. Voting against this action: Governor Teeters. Absent and not voting: Chairman Vol­ Order Denying Acquisition of Bank cker. The Marine Corporation, Milwaukee, Wisconsin, has (Signed) G riffith L. Garwood, applied for the Board’s approval under section 3(a)(3) [seal] Deputy Secretary of the Board. of the Bank Holding Company Act of 1956, as amended (12 U.S.C. § 1842(a)(3)), to acquire 100 per­ cent of the voting shares (less directors’ qualifying Dissenting Statem ent of Governor Teeters shares) of First National Bank and Trust Company of Racine, Racine, Wisconsin (“Bank”). I would deny the application of Florida National Notice of the application, affording opportunity for Banks of Florida, Inc. to acquire Stuart National Bank interested persons to submit comments and views, has and Port Salerno National Bank, for the reasons set been given in accordance with section 3(b) of the Act. forth in Dissenting Statements to past actions by the The time for filing comments and views has expired, Board approving applications by major bank holding and the Board has considered the application and all companies seeking to acquire a banking organization with a significant presence in one or more markets where the applicant was not present.1 I believe that al Reserve Bulletin 674 (1977); DETROITBANK Corporation, 63 consummation of this proposal would have an adverse Federal Reserve Bulletin 926 (1977); Northwest Bancorporation, 63 Federal Reserve Bulletin 1096 (1977); First City Bancorpora­ tion of Texas, Inc. (Lufkin National Bank), 64 Federal Reserve Bulletin 969 (1978); First City Bancorporation of Texas, Inc. (First 1. Texas Commerce Bancshares, Inc. (Bancapital Financial Corpo­ Security National Corporation), 64 Federal Reserve Bulletin 862 ration), 63 Federal Reserve Bulletin 500 (1977); First City Ban­ (1979); National Detroit Corporation, 64 Federal Reserve Bulle­ corporation of Texas, Inc. (City National Bank of Austin), 63 Feder- tin 928 (1979). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 Federal Reserve Bulletin □ April 1980 comments received in light of the factors set forth in fice, and deposits per banking office. In addition, de­ section 3(c) of the Act (12 U.S.C. § 1842(c)). spite the market’s attractiveness, Applicant is the only Applicant, the third largest banking organization in major statewide bank holding company not represent­ Wisconsin, controls 18 banks with total deposits of ap­ ed therein and the Board believes that if this appli­ proximately $1.3 billion, representing 6.8 percent of cation is denied Applicant will probably enter the mar­ total deposits in commercial banks in the state.1 Ac­ ket by some more procompetitive means. The Board quisition of Bank ($124.3 million in deposits), the 17th notes there are smaller, independent banks located in largest banking organization in Wisconsin, would in­ the market that might serve as foothold entry points crease Applicant’s share of statewide commercial for Applicant. Accordingly, denial of the proposal pre­ bank deposits by 0.7 percent and Applicant would serves the probability that Applicant and Bank may thereby become the second largest banking organiza­ become direct competitors in the Racine market. Com­ tion in the state. In the context of the banking struc­ petition would be enhanced, and ultimately, con­ ture in Wisconsin, as discussed below, such an in­ sumers of banking services would benefit from such an crease in the concentration of banking resources is of eventuality. In view of the facts of record, including concern to the Board. the financial and managerial resources of Applicant, Bank, headquartered in downtown Racine, the the large share of deposits held by Bank in the Racine fourth largest city in Wisconsin, is the largest of 13 market, the structure of the Racine market, Appli­ banks located in the Racine banking market2 and con­ cant’s presence in adjacent markets, the attractiveness trols approximately 22.7 percent of the market’s de­ of the Racine market for de novo entry, and other posits in commercial banks. While Applicant does not characteristics of the market, the Board concludes that control any banks within the Racine banking market, consummation of this proposal would have sub­ Applicant has eleven subsidiary banks in markets adja­ stantially adverse effects on probable future com­ cent to the Racine market, six of which are within 25 petition in the Racine market. The Board regards these miles of Bank or its branch office in Ives Grove. These competitive effects as being sufficient to warrant denial include Applicant’s lead bank and nine of Applicant’s of the proposal unless clearly outweighed by consid­ other banking subsidiaries located in the adjacent Mil­ erations relating to the convenience and needs of the waukee area. Based upon all the facts of record, it communities to be served. does not appear that consummation of the proposal The competitive consequences associated with this would have a significantly adverse effect upon existing proposal must also be considered in light of their ef­ competition. fects upon the structure of banking in Wisconsin. In With respect to potential competition, however, the Wisconsin there are three Statewide banking organiza­ Board has previously expressed its concern about the tions (First Wisconsin, Marshall & Ilsley, and Appli­ entry into smaller metropolitan areas by leading bank­ cant), controlling slightly less than one-third of com­ ing organizations in a state through the acquisition of mercial bank deposits in Wisconsin, and numerous one of the larger independent organizations in such significantly smaller regional bank holding companies. areas. Thus, the Board is concerned with the adverse The Board regards any sizeable increase in the control competitive effect the proposal would have upon prob­ of banking resources by the three leading organiza­ able future competition in the Racine banking market. tions in Wisconsin as generally not in the public inter­ The Racine banking market is moderately concen­ est.4 Bank is the second largest of the six remaining trated, with a four-firm concentration ratio of approxi­ independent banking organizations in Wisconsin with mately 65.9 percent.3 The Board is also of the opinion more than $100 million in deposits. Bank’s size must that the Racine banking market is reasonably attrac­ be considered in light of the fact that eleven of the tive for, and capable of supporting, de novo entry. twenty largest bank holding companies in Wisconsin This is based upon the facts of record including that have lead banks similar in size to Bank. In this regard, the Racine market ranks among the top five counties in the Board notes that in 1978 Bank initiated steps to Wisconsin in terms of population density, industrial­ become a bank holding company. It appears that Bank ization, personal income, population per banking of- could become the lead bank in a regional holding com­ pany and thereby become a potential competitor of Applicant, particularly in the market areas adjacent to 1. Banking data are as of June 30, 1979, and reflect bank holding company formations and acquisitions approved as of January 31, Racine, in which Applicant already operates. The 1980. Board is of the view that consummation of the pro- 2. The Racine banking market is approximated by the Racine RMA which includes Mt. Pleasant, Yorkville, Dover and Rochester town­ ships, most of Caledonia township and the village of Waterford, all in Wisconsin. 4. The structure of banking in Wisconsin has long been of concern 3. Three of the banks located in the Racine banking market are un­ to the Board. (See Board Order denying the application of Applicant der common control and are treated as a single entity for purposes of to acquire The Beloit State Bank, Beloit, Wisconsin (49 Federal Re­ determining the four-firm concentration ratio in the Racine market. serve Bulletin 192 (1963)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 349 posed acquisition would permit one of the major bank­ The proposed transaction is a corporate reorganiza­ ing organizations in Wisconsin to acquire a large inde­ tion whereby an existing one-bank holding company pendent bank in a major Wisconsin market, rather will transfer its banking interests, including Bank, to than entering by some more procompetitive means, one of its nonbanking subsidiaries. Applicant, a and that this would perpetuate the size disparity be­ wholly-owned subsidiary of Lykes Brothers, Inc., tween the three largest banking organizations in Wis­ (“Lykes”) Tampa, Florida, proposes to acquire the consin and all other banking organizations in the state. shares of Bank presently owned by Lykes. Sub­ The financial and managerial resources of Appli­ sequent to the acquisition, Lykes will distribute all the cant, its subsidiaries and Bank are regarded as gen­ shares of Applicant to its shareholders. Lykes is also erally satisfactory and future prospects are favorable. engaged in a variety of nonbank activities in reliance Accordingly, banking factors are consistent with ap­ on the exemption from the prohibitions in section 4 of proval. Although Applicant proposes to introduce the Act contained in section 4(c)(ii) of the Act.1 Pur­ some new services at Bank, the Board concludes that suant to section 4(a)(2) of the Act, Applicant, a con­ the banking needs of the area are already being met. tainer manufacturer, would be required to divest its Furthermore, such services could be provided by Ap­ nonbank activities within two years of becoming a plicant through de novo or foothold entry. Thus, the bank holding company. Board finds that considerations relating to the conve­ In view of the fact that the transfer of Bank from nience and needs of the community to be served do not Lykes to Applicant would not alter either the control outweigh the substantially adverse competitive effects or beneficial ownership of Bank, upon consummation of this proposal. of the transaction the Board would regard Applicant as Based on the foregoing and other considerations re­ a successor to Lykes within the meaning of section flected in the record, it is the Board’s judgment that 2(e) of the Act. Although Applicant may be regarded the proposed acquisition would not be in the public as a successor to Lykes, the Board is not required to interest and that the application should be denied. Ac­ approve an application that would permit Applicant to cordingly, the application is hereby denied. acquire Bank while retaining its container manufactur­ By Order of the Board of Governors, effective March ing business unless it otherwise conforms to the stan­ 26, 1980. dards of section 3(c) of the Act. The Board has re­ viewed the facts pertaining to this application, and the Voting for this action: Governors Wallich, Partee, Teeters, record does not indicate that the continuation of the and Rice. Voting against this action: Vice Chairman Schultz. container manufacturing business by Applicant would Absent and not voting: Chairman Volcker. have a negative effect on Bank. Moreover, in the Board’s view, the proposal is consistent with the pur­ (Signed) G riffith L. Garwood, poses of the Act and the provisions of section 3 of the [seal] Deputy Secretary of the Board. Act, since the overall effect of the transaction would be to separate Bank from a substantial portion of Lykes nonbanking business. In reaching this con­ clusion, the Board has relied on Applicant’s com­ M ulti-Line, Inc., mitment that it will limit its future nonbanking acquisi­ Tampa, Florida tions and activities. In particular, the Board expects that Applicant will not acquire new properties or en­ Order Approving gage in new nonbank activities except on the same Formation of Bank Holding Company terms and conditions applicable to bank holding com­ panies generally, including the requirement of obtain­ Multi-Line, Inc., Tampa, Florida, has applied for the ing the Board’s prior approval for certain transactions. Board’s approval under section 3(a)(1) of the Bank Based on the foregoing, the Board has determined that Holding Company Act (12 U.S.C. § 1842(a)(1)) of for­ as the successor to Lykes, Applicant may retain its mation of a bank holding company by acquiring 86 per­ container manufacturing operations. cent (or more) of the voting shares of Bank of Clear­ Bank, which holds deposits of $118.6 million2 is the water (“Bank”), Clearwater, Florida. 46th largest banking organization in Florida holding Notice of the application, affording opportunity for interested persons to submit comments and views, has been given in accordance with section 3(b) of the Act. 1. Section 4(c)(ii) exempts from the prohibitions of section 4: “a The time for filing comments and views has expired, company covered in 1970 more than 85 per centum of the voting stock and the Board has considered the application and all of which was collectively owned on June 30, 1968 and continuously thereafter, directly or indirectly by or for members of the same family, comments received in light of the factors set forth in or their spouses, who are lineal descendants of common ancestors:” section 3(c) of the Act (12 U.S.C. § 1842(c)). 2. Banking data are as of December 31, 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 Federal Reserve Bulletin □ April 1980 0.4 percent of total deposits in commercial banks in Austin, Texas (“Bank”). the state. Bank is the fourth largest of 17 banking or­ Notice of the application, affording opportunity for ganizations in the Pinellas County banking market3 interested persons to submit comments and views has and holds approximately 10.4 percent of the total de­ been given in accordance with section 3(b) of the Act posits in commercial banks in the market. This appli­ (12 U.S.C. § 1842(b)). The time for filing comments cation involves a corporate restructuring of Bank’s and views has expired, and the application and all ownership from a one-bank holding company to a comments received have been considered in light of wholly-owned subsidiary of the same bank holding the factors set forth in section 3(c) of the Act (12 company and does not represent an expansion of the U.S.C. § 1842(c)). bank holding company system. Consummation of this Applicant, the fourth largest banking organization in proposal would not result in any adverse effects upon Texas, controls 22 banks with aggregate deposits of competition in any relevant area. Thus, competitive approximately $5.0 billion, representing 7.41 percent considerations are consistent with approval of this ap­ of total deposits in commercial banks in the state.1 Ac­ plication. quisition of Bank ($63.5 million in deposits), the 114th The financial and managerial resources and future largest banking organization in Texas, will increase prospects of Applicant are consistent with approval of Applicant’s share of commercial bank deposits in the the application. Although consummation of the trans­ state by only 0.09 percent and will not alter Appli­ action would have no effect on the services offered by cant’s ranking in the state. Thus, consummation of the Bank, considerations relating to the convenience and transaction will not result in a significant increase in needs of the community to be served are also consis­ the concentration of banking resources in Texas. tent with approval of the application. Accordingly, it is Bank is the seventh largest of 21 banking organiza­ the Board’s judgment that the proposed acquisition tions in the Austin banking market (the relevant mar­ would be in the public interest and that the application ket)2 and controls 3.0 percent of total commercial bank should be approved. deposits in the market. Applicant is the market’s fifth On the basis of the record, the application is ap­ largest banking organization through its control of proved for the reasons summarized above. The trans­ Texas State Bank (“State Bank”) ($92.3 million in de­ action shall not be made before the thirtieth calendar posits), holding 4.4 percent of the market’s com­ day following the effective date of this Order or later mercial bank deposits. Consummation of the proposal than three months after the effective date of this Or­ will increase Applicant’s share of market deposits to der, unless such period is extended for good cause by 7.4 percent but its rank within the market will remain the Board, or by the Federal Reserve Bank of Atlanta unchanged. In light of these and other facts of record, pursuant to delegated authority. the Board finds that consummation of the proposal will By Order of the Board of Governors, effective result in an elimination of existing competition between March 18, 1980. Bank and State Bank, will remove an independent competitor from the Austin market and will increase Voting for this action: Chairman Volcker and Governors somewhat the concentration of banking resources in Schultz, Wallich, Partee, Teeters, and Rice. the Austin market. In view of these findings, the Board is of the opinion that consummation of the proposal (Signed) G riffith L. Garwood, will have adverse competitive effects.3 However, the [seal] Deputy Secretary of the Board. 1. All banking data are as of December 31, 1978, and reflect bank holding company formations and acquisitions approved as of January 31, Republic of Texas Corporation, 1980. 2. The Austin banking market is approximated by the Austin Ra- Dallas, Texas nally Metro Area, which comprises most of Travis County and small portions of Hays and Williamson counties. Order Approving Acquisition of Bank 3. In an analysis based solely on market share, the competitive ef­ fects of this proposal are similar to those presented in County National Bancorporation/T.G.B., 65 Federal Reserve Bulletin 763 (1979). Republic of Texas Corporation, Dallas, Texas, a bank However, the Board’s Order in County National reflects the Board’s holding company within the meaning of the Bank determination that market share is not the sole factor the Board con­ siders in assessing the competitive effects of a proposal. In County Holding Company Act, has applied for the Board’s ap­ National, the two organizations that were to be combined were “rela­ proval under section 3(a)(3) of the Act (12 U.S.C. § tively large banking organizations . . ., fairly matched in strength and each . . . well represented by a sizeable lead bank subsidiary.” In 1842(a)(3)) to acquire 100 percent of the voting shares addition, both organizations in County National were “of a size to (less directors’ qualifying shares) of Bank of Austin, have achieved economies of scale and have management, or sufficient resources to attract capable management, that will permit each to con­ tinue independently as an aggressive competitor in that market. ...” 3. The Pinellas County banking market is defined as all of Pinellas The Board is of the view that these considerations do not arise in the County. context of the subject proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 351 Board is of the view that other factors associated with (Signed) G riffith L. Garwood, this proposal mitigate the anticompetitive effects of the [seal] Deputy Secretary of the Board. transaction. As the Board has noted on previous occasions,4 the Board believes that proposals involving the acquisition of an independent banking organization by an organi­ Society Corporation, zation already represented in a market must be ana­ Cleveland, Ohio lyzed carefully, giving attention to all of the facts presented in each case, such as the structural charac­ Order Approving Acquisition of a Bank teristics of the market as well as the quantitative fac­ tors associated with the proposal. In this regard, the Society Corporation, Cleveland, Ohio, a bank holding Board notes that there are four larger organizations in company within the meaning of the Bank Holding the market, including the three largest banking organi­ Company Act (“BHC Act”), has applied for the zations in Texas, each of which will continue to con­ Board’s approval under section 3(a)(3) of that Act (12 trol approximately twice the amount of market depos­ U.S.C. § 1842(a)(3)) of the acquisition of The Second its that Applicant will control upon consummation. National Bank of Bucyrus (“Bank”), Bucyrus, Ohio. Accordingly, the Board concludes that the overall Notice of the application, affording an opportunity competitive effects of this proposal do not warrant de­ for interested persons to submit comments and views, nial; furthermore, any anticompetitive effects are out­ has been given in accordance with section 3(b) of the weighed by the convenience and needs considerations BHC Act. The time for filing comments and views has associated with the proposal. expired, and the Board has considered the application The financial and managerial resources and future and all comments received, including those of Unionprospects of Applicant and its subsidiaries are consid­ Miles Community Coalition (“Protestant”), Cleve­ ered satisfactory. The financial and managerial re­ land, Ohio, in light of the factors set forth in section sources and future prospects of Bank appear satisfac­ 3(c) of the BHC Act (12 U.S.C. § 1842(c)). tory in light of steps Applicant will take to strengthen Applicant, the fourth largest banking organization in and improve Bank’s overall condition. In addition to Ohio, controls 14 banks with aggregate deposits of ap­ the fact that affiliation with Applicant will strengthen proximately $2.2 billion, representing 5.9 percent of Bank’s condition, consummation of the proposal will total commercial bank deposits in the state.1 Consum­ enable Bank to remain a viable competitive alternative mation of the proposed transaction would increase Ap­ in serving the convenience and needs of the Austin plicant’s share of statewide deposits by less than 0.1 community. Affiliation with Applicant will also enable percent and would not have an appreciable effect on Bank to develop its services to commercial customers. the concentration of banking resources in Ohio. In light of the above, considerations relating to the Bank ($31 million in deposits) is the largest of five convenience and needs of the community to be served banks in the Crawford County banking market,2 and lend significant weight toward approval of the appli­ controls 26.9 percent of total market deposits. None of cation and outweigh any adverse competitive effects Applicant’s subsidiary banks has an office in the Craw­ that might result from consummation of the proposal. ford County banking market, and Applicant’s closest Accordingly, the Board has determined that the appli­ banking office is some 26 miles from any office of cation should be approved. Bank. Thus, no significant existing competition would On the basis of the record, the application is ap­ be eliminated upon consummation of the proposal and proved for the reasons summarized above. The trans­ there would be no adverse effect on the concentration action shall not be made before the thirtieth calendar of banking resources within the Crawford County mar­ day following the effective date of this Order, or later ket. than three months after the effective date of this Order Consummation of the proposal will eliminate some unless such period is extended for good cause by the potential competition between Applicant and Bank, Board, or by the Federal Reserve Bank of Dallas, un­ however, inasmuch as Applicant could enter the der delegated authority. Crawford County banking market de novo either by By Order of the Board of Governors, effective establishing a new subsidiary bank or by establishing a March 18, 1980. branch of a subsidiary bank located in Seneca County, Voting for this action: Chairman Volcker and Governors Schultz, Wallich, Partee, Teeters, and Rice. 1. Banking data are as of September 30, 1978, and reflect bank holding company acquisitions as of December 31, 1979. 4. See The Marine Corporation/Commercial State Bank, 66 Feder­ 2. The Crawford County banking market is approximated by all of al Reserve Bulletin 166 (1980). Crawford County, Ohio, except Polk Township. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 Federal Reserve Bulletin □ April 1980 Ohio.3 The Crawford County market appears to be failed to comply with procedural and notice require­ somewhat attractive for de novo entry, and in view of ments of CRA; that SNB has failed to meet the credit Applicant’s financial and managerial resources, there needs of low and moderate income neighborhoods is some probability that Applicant would enter the with respect to mortgage and home improvement market in the future. Although Applicant proposes to loans; that SNB has engaged in racially discriminatory acquire the largest bank in the market, consummation credit practices, including purchasing home improve­ of the proposal would not entrench Bank’s position in ment loans in predominantly black areas while directly the market because the share of market deposits con­ originating such loans in predominantly white areas; trolled by Bank is not substantially greater than the and that SNB has failed to communicate with neigh­ shares held by several other competitors in the mar­ borhood organizations in order to ascertain the credit ket. Indeed, each bank in the relevant market holds in needs of low and moderate income areas. excess of 10 percent of the market’s deposits. Further­ Protestant initially requested a public hearing in more, Applicant would be the first of Ohio’s 15 multi­ connection with its allegations; however, the Board bank holding companies to enter the Crawford County concludes that Protestant has not demonstrated that market and vehicles for entry by other large banking such a hearing would be appropriate. Section 3(b) of organizations would remain after consummation. Al­ the BHC Act requires the Board to hold a hearing on though Bank appears to have sufficient resources to an application to acquire a state-chartered bank upon branch into Seneca County, it does not appear prob­ the request of the state bank supervisory authority. able that it would do so because the Crawford County No such request has been received with respect to this banking market is more attractive for expansion than application, and no other statute requires the Board to Seneca County. In view of these facts, the Board re­ hold a hearing. Both Protestant and Applicant have gards the effects of the acquisition of Bank by Appli­ made substantial written submissions, including the cant on potential competition to be slightly adverse transcript of a hearing held by the Office of the Comp­ with respect to the Crawford County banking market, troller of the Currency on October 20, 1979, con­ and as not significantly adverse with respect to any cerning SNB’s record of compliance under CRA,4 for other relevant banking market. the Board’s consideration with respect to Protestant’s The financial and managerial resources of Appli­ allegations. Moreover, Applicant and Protestant have cant, its subsidiary banks, and Bank are considered held numerous meetings beginning in March 1979. generally satisfactory and their future prospects ap­ These meetings culminated with a conference in De­ pear favorable. Thus, considerations relating to bank­ cember 1979, that included staff from the Federal Re­ ing factors are consistent with approval of the appli­ serve Bank of Cleveland, at which many issues be­ cation. tween the parties were settled. On January 7, 1980, In considering the effects of the proposed acquisi­ Applicant entered into a written agreement with Pro­ tion on the convenience and needs of the community testant (“January 7 Agreement”) to take certain steps to be served, the Board has examined the records of to improve its services within the Union-Miles area.5 Applicant and its subsidiary banks’ performances in As a result of these submissions and meetings, the ma­ meeting the credit needs of their communities, as pro­ terial facts regarding SNB’s CRA record are generally vided in the Community Reinvestment Act (12 U.S.C. not in dispute or are of a character that do not warrant §§ 2901-05) (“CRA”), and the Board’s Regulation BB a second hearing to further clarify them, and the Board (12 C.F.R. Part 228) issued thereunder. The CRA re­ believes that no purpose would be served by holding a quires the Board to assess the records of those sub­ hearing. sidiaries of meeting the credit needs of their entire On the basis of its review of the facts of record, in­ communities, including low and moderate income cluding a field investigation of SNB’s record of com­ neighborhoods, consistent with the safe and sound op­ pliance with CRA and other consumer laws by the eration of those subsidiaries, and to take these records into account in its evaluation of this application. Protestant has submitted extensive comments con­ 4. This hearing was conducted in connection with another protest cerning the CRA record of Applicant’s lead subsidiary submitted by Protestant to the Comptroller of the Currency in con­ bank, Society National Bank (“SNB”), Cleveland, nection with applications by SNB to establish five branches in Lake County, Ohio, and the proposed merger of The First National Bank of Ohio. Specifically, Protestant alleges that SNB has Clermont County, Bethel, Ohio, with SNB. Protestant’s allegations with respect to these applications were the same as those made in regard to the application before the Board. 5. This agreement deals primarily with Applicant’s marketing ef­ 3. Under Ohio law, a bank in Ohio may branch de novo into any forts. It does not in any way create a preference for credit applications county contiguous with the county in which the bank’s home office is received from any portion of the community, nor will it have any ad­ located. Applicant’s subsidiary, Tri-County National Bank, Fostoria, verse effects on the safety and soundness of SNB. Accordingly, the Ohio, has its home office in Seneca County, which is contiguous with Board regards the agreement as being consistent with the policy out­ Crawford County. lined in its CRA Information Statement of January 3, 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 353 Comptroller of the Currency, the Board makes the fol­ provement loans made by SNB in Cuyahoga County lowing findings with respect to Protestant’s allega­ were made in low and moderate income areas. tions. With respect to SNB’s record of compliance The Board finds Protestant’s allegations that SNB’s with the procedural and notice requirements of CRA, residential lending pattern indicates that it engages in Protestant alleges that its representatives discovered racially discriminatory practices to be unpersuasive in missing public notices and CRA statements at several view of the Comptroller’s field investigation and other SNB branches, and that correspondence Protestant facts of record. Although it appears that SNB fulfills a submitted to SNB was not included in SNB’s public somewhat higher percentage of the demand for mort­ file. A field investigation by staff of the Comptroller of gage loans in the predominantly white areas of Cleve­ the Currency, however, found the branches cited by land, it makes substantially more home improvement Protestant to be in compliance with both the procedur­ loans in the predominantly black areas of that city. al and notice requirements of CRA. Based upon the Moreover, examiners from the Office of the Comptrol­ findings of this investigation, it appears that any tech­ ler did not find any evidence that SNB discouraged nical violations that may have existed have been cor­ loan applications from individuals residing in pre­ rected. Furthermore, SNB has taken certain steps, in­ dominantly black areas or that inappropriate criteria cluding the appointment of a community affairs were used in considering applications from members director, to insure compliance with the technical re­ of minority groups. The examiners also found no evi­ quirements of CRA. dence to support Protestant’s allegations of racial dis­ Protestant contends that SNB’s record of residential crimination in SNB’s advertising of services. mortgage and home improvement lending in the The Board also finds that SNB’s practice of pur­ Union-Miles area and other low and moderate income chasing home improvement loans rather than directly neighborhoods is poor. It bases its contention on com­ originating such loans does not represent evidence of parisons of data supplied by SNB pursuant to the racial discrimination. Protestant’s dissatisfaction with Home Mortgage Disclosure Act (12 U.S.C. § 2803) indirect home improvement loans appears to have re­ (“HMDA”) with real estate transfer data and with de­ sulted from misconceptions of SNB’s role in process­ posit data for individual SNB branches. The Board has ing such loans, and from SNB’s unawareness of prob­ analyzed the HMDA/real estate transfer comparisons lems that residents of the Union-Miles community thoroughly. The Board has previously indicated, how­ have had with contractors from whom such loans are ever, in its CRA Information Statement issued on Jan­ purchased. The January 7 Agreement specifically uary 3, 1980, that it does not believe that disparities deals with the issue of indirect home improvement between deposit and loan totals constitute prima facie loans, and appears to address the specific complaints evidence of improper discrimination. registered by Protestant. The Board has analyzed SNB’s record of mortgage To support its allegation that SNB has not made suf­ and home improvement lending in low and moderate ficient efforts to ascertain the credit needs of its com­ income neighborhoods in Cuyahoga County, the city munity, Protestant asserts that SNB had not contacted of Cleveland, and the Union-Miles community, taking it or other neighborhood groups in Cleveland con­ into consideration demand factors in those areas, and cerning these credit needs. The Board notes, however, it appears that SNB is helping to meet the needs of its that SNB has met with Protestant on several occasions community with respect to such loans. Although there since March 1979, and that while it did not initiate the appears to be significant disparity between the propor­ contact with Protestant, SNB has demonstrated a gen­ tion of mortgage loan demand accommodated by SNB uine willingness to increase its level of community in­ in suburban areas of Cuyahoga County and the de­ volvement. This willingness is further demonstrated in mand accommodated in Cleveland, the Board finds no the January 7 Agreement in which SNB agreed to take evidence that this disparity results from consideration certain affirmative steps to inform community resi­ of improper factors in SNB’s credit extension proce­ dents of the types of credit services it offers. In addi­ dures, and this disparity may be the result of a variety tion, SNB’s newly appointed director of community of other factors, such as the institutional structure of affairs will be responsible for contacting neighborhood the market. Moreover, in both 1977 and 1978, SNB groups regarding local credit needs. provided more home improvement loans in the low Based on its review of SNB’s CRA record, the and moderate income areas of Union-Miles and Board concludes that Protestant’s allegations have ei­ Cuyahoga County as a whole than any other lender. ther not been substantiated by the facts of record or Home improvement loans made by SNB in low and involve practices that have been discontinued. SNB moderate income areas also represented a substantial has offered a full range of services throughout its com­ percentage of the total of all home improvement loans munity and has not arbitrarily excluded any area. made by SNB. For example, in 1978, more than 35 Moreover, SNB has demonstrated its willingness to be percent of the number and dollar volume of home im­ responsive to concerns expressed by members of its Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 Federal Reserve Bulletin □ April 1980 community. The Board regards the CRA record of of the Bank Holding Company Act (12 U.S.C. § SNB and Applicant’s other subsidiary banks as consis­ 1842(a)(1)) to become a bank holding company through tent with approval of the application. the acquisition of 80 percent or more of the voting With respect to other convenience and needs con­ shares of First National Bank of Waupaca (“Bank”), siderations, Applicant has stated its intent to revise Waupaca, Wisconsin. Bank’s mortgage lending policies upon its acquisition Notice of the application, affording opportunity for of Bank. Applicant will work with Bank to qualify interested persons to submit comments and views, has mortgage loans for the Federal Home Mortgage Cor­ been given in accordance with section 3(b) of the Act. poration secondary market and for private mortgage The time for filing comments and views has expired, guaranty insurance, thereby allowing Bank to issue and the Board has considered the application and all mortgage loans with longer maturities and lower down comments received in light of the factors set forth in payments. Applicant also intends to install its on-line section 3(c) of the Act (12 U.S.C. § 1842(c)). teller system in all offices of Bank to improve customer Applicant, a nonoperating corporation with no sub­ service. Banks’ customer also would have access to sidiaries, was organized for the purpose of becoming a specialized commercial services, such as international bank holding company by acquiring Bank ($22.2 mil­ banking services, offered by SNB. Customers in lion in deposits).1 Upon its acquisition of Bank, Appli­ Bank’s market would benefit from the availability of cant would become the 262nd largest banking organi­ specialized trust services Bank would be able to offer zation in Wisconsin, controlling approximately 0.11 as a result of affiliation with Applicant. Therefore, con­ percent of total deposits in commercial banks in Wis­ siderations relating to the convenience and needs of consin. Bank is the fourth largest of ten banks located the community to be served, including the January 7 in the Waupaca County banking market2 and holds ap­ Agreement, lend weight toward approval of the appli­ proximately 11.1 percent of the market’s deposits in cation, and in the Board’s view, are sufficient to out­ commercial banks. This proposal involves a restruc­ weigh any anticompetitive effects that would result turing of Bank’s ownership from individuals to a cor­ from consummation of the proposal. Based on the poration controlled by the same individuals. Appli­ foregoing and other considerations reflected in the rec­ cant’s principals are also principals of seventeen other ord, it is the Board’s judgment that the proposed ac­ banks and nine other bank holding companies. How­ quisition is in the public interest and that the appli­ ever, all these organizations are located over 75 miles cation should be approved. from Bank in separate banking markets from Bank. On the basis of the record, the application is ap­ Accordingly, it appears from the facts of record that proved for the reasons summarized above. The trans­ consummation of the proposal would not result in any action shall not be consummated before the thirtieth adverse effects upon competition in any relevant area. calendar day following the effective date of this Order Thus, competitive considerations are consistent with or later than three months after the effective date of approval. this Order, unless such period is extended for good Where principals of an applicant are engaged in op­ cause by the Board or by the Federal Reserve Bank of erating a chain of banking organizations, the Board, in Cleveland pursuant to delegated authority. addition to analyzing the bank holding company pro­ By Order of the Board of Governors, effective posal before it, also considers the total chain and ana­ March 11, 1980. lyzes the financial and managerial resources and future prospects of the chain within the context of the Voting for this action: Governors Schultz, Coldwell, Par­ Board’s multi-bank holding company standards. tee, Teeters, and Rice. Absent and not voting: Chairman Based upon such analysis in this case, the Board finds Volcker and Governor Wallich. that considerations relating to banking factors are con­ sistent with approval of the application. In reaching (Signed) Theodore E. A llison, this conclusion, the Board has considered the financial [seal] Secretary of the Board. and managerial resources and future prospects of Ap­ plicant, Bank, and the related banks and bank holding companies and has relied upon commitments made in W aupaca Bancorporation, connection with this application to inject additional W aupaca, W isconsin equity capital into Bank and to improve and maintain capital levels in the subsidiary banks of the related Order Approving Formation of Bank Holding bank holding companies. Company 1. All banking data are as of December 31, 1978. Waupaca Bancorporation, Waupaca, Wisconsin, has 2. The Waupaca County banking market is approximated by Wau­ applied for the Board’s approval under section 3(a)(1) paca County, Wisconsin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 355 While consummation of the proposal would result in or later than three months after the effective date of no immediate changes in the services offered by Bank, this Order, unless such period is extended for good considerations relating to the convenience and needs cause by the Board, or by the Federal Reserve Bank of of the communities to be served are consistent with Chicago pursuant to delegated authority. approval of this application. Based upon the foregoing By Order of the Board of Governors, effective and other considerations reflected in the record, it is March 26, 1980. the Board’s judgment that the proposed acquisition is in the public interest and that the application should be Voting for this action: Vice Chairman Schultz and Gover­ approved. nors Partee, Teeters, and Rice. Absent and not voting: Chair­ man Volcker and Governor Wallich. On the basis of the record, the application is ap­ proved for the reasons summarized above. The trans­ action shall not be consummated before the thirtieth (Signed) G riffith L. Garwood, calendar day following the effective date of this Order [seal] Deputy Secretary of the Board. Orders A pproved Under Bank H olding Company A ct By the Board of Governors During March 1980 the Board of Governors approved the applications listed below. Copies are available upon request to Publications Services, Division of Support Services, Board of Governors of the Federal Reserve Sys­ tem, Washington, D.C. 20551. Section 3 Board action (effective Applicant Bank(s) date) SBT Corporation, Commercial Bank, March 4, 1980 Savannah, Georgia Way cross, Georgia 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 Apple Valley Bancshares, Inc., First State Bank of Apple Valley, Minneapolis March 5, 1980 Apple Valley, Minnesota Apple Valley, Minnesota Arkansas State Arkansas State Bank, St. Louis March 11, 1980 Bankcorporation, Inc., Clarksville, Arkansas Clarksville, Arkansas Blackduck Bancshares, Inc., Blackduck State Bank, Minneapolis March 7,1980 Blackduck, Minnesota Blackduck, Minnesota Blue Mound Bancshares, Inc. The State Bank of Blue Mound, Chicago March 13, 1980 Blue Mound, Illinois Blue Mound, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 Federal Reserve Bulletin □ April 1980 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Buckeye Bancorporation, Community National Bank, Cleveland March 18, 1980 Mt. Gilead, Ohio Mt. Gilead, Ohio Central Wisconsin Bankshares, New Lisbon State Bank, Chicago March 18, 1980 Inc., New Lisbon Wisconsin Wausau, Wisconsin Commercial Bancshares, Inc., Wharton Bank and Trust Co., Dallas March 6, 1980 Wharton, Texas Wharton, Texas County Bancshares, Inc., Pike County Bank, Atlanta March 17, 1980 Troy, Alabama Troy, Alabama Fidelity Corporation Burke First Fidelity Bank, Minneapolis March 10, 1980 South Dakota Murdo, South Dakota Fidelity Corporation Burke First Fidelity Bank, Minneapolis March 7, 1980 South Dakota Colome, South Dakota First American Bancshares, Inc. The Kingston Bank, Kansas City March 3, 1980 Kingston, Missouri Kingston, Missouri First Beemer Corporation, First National Bank of Beemer, Kansas City March 7, 1980 Beemer, Nebraska Beemer, Nebraska First Bells Bankshares, Inc., The National Bank of Bells, Dallas April 1, 1980 Bells, Texas Bells, Texas First Bloomington Corporation, The National Bank of Chicago March 19, 1980 Bloomington, Illinois Bloomington, Bloomington, Illinois First Hugo Capital Corporation The First National Bank of Kansas City March 14, 1980 Hugo, Colorado Hugo, Hugo, Colorado The First National Buckingham Square National Kansas City March 14, 1980 Bancorporation, Inc., Bank, Denver, Colorado Aurora, Colorado First National Bankshares of First National Bank of Sheridan, Kansas City March 7, 1980 Sheridan Sheridan, Wyoming Sheridan, Wyoming First Riesel Corporation, First State Bank, Dallas March 7,1980 Riesel, Texas Riesel, Texas First Tipton Bancorporation, First National Bank of Tipton, Chicago March 3, 1980 Tipton, Iowa Tipton, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 357 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date First Union Bancorporation, First National Bank of Neosho, St. Louis March 11, 1980 St. Louis, Missouri Neosho, Missouri First Woodstock Corporation, First National Bank of Chicago March 21, 1980 Woodstock, Illinois Woodstock, Woodstock, Illinois Great Southern Bancshares, Great Southern Bank, Dallas March 4, 1980 Inc., Houston, Texas Houston, Texas Hawkeye Bancorporation Hawkeye State Bank, Chicago March 14, 1980 Des Moines, Iowa Iowa City, Iowa Hubbard Bancshares, Inc., State Bank of Park Rapids, Chicago March 31, 1980 Park Rapids, Minnesota Park Rapids, Minnesota Iowa Park Bancshares, Inc., The State National Bank of Iowa Chicago March 21, 1980 Iowa Park, Texas Park, Iowa Park, Texas Jennings Bank Shares, Inc., Jennings Bank, Chicago March 14, 1980 Jennings, Kansas Jennings, Kansas Johnson State Bancshares, Inc., The Johnson State Bank, Kansas City February 29, 1980 Johnson, Kansas Johnson, Kansas MPSBancorp, Inc., Mount Prospect State Bank, Chicago March 21, 1980 Mount Prospect, Illinois Mount Prospect, Illinois M. W. Reed Banco, Stege Insurance Agency, Inc., Chicago March 24, 1980 Iowa Falls, Iowa Fonda, Iowa, et al. Madison Holding Co., Union State Bank, Chicago March 31, 1980 Winterset, Iowa Winterset, Iowa Minnesota Banc Holding Co., Citizens State Bank of Minneapolis March 6, 1980 Waterville, Minnesota Waterville, Waterville, Minnesota New Richmond Bancorporation, The New Richmond National Cleveland March 3,1980 New Richmond, Ohio Bank, New Richmond, Ohio Northwest Indiana Bancshares, Counting House Bank, Chicago March 24, 1980 Inc., North Webster, Indiana Hammond, Indiana Oak Park Bancorp., Inc., The Dunham Bank, Chicago March 13, 1980 Oak Park, Illinois St. Charles, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 Federal Reserve Bulletin □ April 1980 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Oklahoma State Bancshares, Oklahoma State Bank & Trust Kansas City March 14, 1980 Inc., Co., Vinita, Oklahoma Vinita, Oklahoma Omego City Holding Co., First State Bank of LaMoure, Minneapolis March 21, 1980 LaMoure, North Dakota LaMoure, North Dakota Orbanco, Inc., Lincoln Bank, San Francisco March 4, 1980 Portland, Oregon Lincoln City, Oregon Straz Investment Co., Inc., First Gulf Beach Bank and Trust Atlanta March 28, 1980 Kenosha, Wisconsin Co., St. Petersburg, Florida TBC, Incorporated, Bank of Taylor, Kansas City March 27, 1980 Taylor, Nebraska Taylor, Nebraska Troy Bancgroup & Co., Troy Security Bank, St. Louis March 5, 1980 St. Louis, Missouri Troy, Illinois The Salida Corporation, The Chaffee County Bank, Kansas City March 27, 1980 Salida, Colorado Salida, Colorado Wellsville Bancshares, Inc., The Wellsville Bank, Kansas City March 27, 1980 Wellsville, Kansas Wellsville, Kansas Section 4 Nonbanking company Reserve Effective Applicant (or activity) Bank date Cunningham Agency, Inc., Retention of insurance assets Kansas City March 27, 1980 Mound City, Kansas Fidelity Union Bancorporation, Economy Assurance Company, New York March 6, 1980 Newark, New Jersey Scottsdale, Arizona First Maryland Bancorp, underwriting insurance Richmond March 13, 1980 Baltimore, Maryland G & R, Inc., sale of credit-related insurance Kansas City March 27, 1980 Troy, Kansas Griswold State Bancshares, general insurance activities Chicago March 20, 1980 Griswold, Iowa The Indiana National retention of Indiana Mortgage Chicago March 25, 1980 Corporation, Corporation, Indianapolis, ITnndniiaonnaopnonlliics , TInndnitaonnoa Indiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 359 Section 4—Continued Nonbanking company Reserve Effective Applicant (or activity) Bank date The Indiana National making or acquiring extensions Chicago February 19, 1980 Corporation, of credit Indianapolis, Indiana Kansas Bancorporation, Inc., mortgage banking activities Kansas City March 27, 1980 Kansas City, Kansas South Carolina National assets of Catrawba Loan and Richmond March 17, 1980 Corporation, Finance Co., Inc., Newton, Columbia, South Carolina North Carolina Orders A pproved Under Bank M erger A ct Reserve Effective Applicant Bank Bank date Hillsdale State Savings Bank, HSB Bank, Chicago March 25, 1980 Hillsdale, Michigan Hillsdale, Michigan Pending Cases Involving the Board of Governors *This list of pending cases does not include suits Gregory v. Board of Governors, filed July 1979, against the Federal Reserve Banks in which the Board U.S.D.C. for the District of Columbia. of Governors is not named a party. Donald W. Riegel, Jr. v. Federal Open Market Com­ mittee, filed July 1979, U.S.D.C. for the District of Albert A. Rapoport v. Board of Governors and Manu­ Columbia. facturers Hanover Trust Co., filed February 1980, Connecticut Bankers Association, et al., v. Board of U.S.D.C. for the District of Columbia. Governors, filed May 1979, U.S.C.A. for the Dis­ American Trust Co. of Hawaii, et al., v. Board of Gov­ trict of Columbia. ernors, filed January 1980, U.S.D.C. for the District Ella Jackson et al., v. Board of Governors, filed May of Columbia. 1979, U.S.C.A. for the Fifth Circuit. Independent Bank Corporation v. Board of Gover­ Memphis Trust Company v. Board of Governors, filed nors, filed October 1979, U.S.C.A. for the Sixth Cir­ May 1979, U.S.C.A. for the Sixth Circuit. cuit. Independent Insurance Agents of America, et al., v. Wiley v. United States, et al., filed September 1979, Board of Governors, filed May 1979, U.S.C.A. for U.S.D.C. for the District of Columbia. the District of Columbia. County National Bancorporation and TGB Co. v. Independent Insurance Agents of America, et al., v. Board of Governors, filed September 1979, Board of Governors, filed April 1979, U.S.C. A. for U.S.C.A. for the Eighth Circuit. the District of Columbia. Edwin F. Gordon v. Board of Governors, et al., filed Independent Insurance Agents of America, et al., v. August 1979, U.S.D.C. for the Northern District of Board of Governors, filed March 1979, U.S.C.A. for Georgia. the District of Columbia. Edwin F. Gordon v. Board of Governors, et al., filed Credit and Commerce American Investment, et al., v. August 1979, U.S.C.A. for the Fifth Circuit. Board of Governors, filed March 1979 U.S.C. A. for American Bankers Association v. Board of Governors, the District of Columbia. et al., filed August 1979, U.S.D.C. for the District of Independent Bankers Association of Texas v. First Columbia. National Bank in Dallas, et al., filed July 1978, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 Federal Reserve Bulletin □ April 1980 U.S.D.C. for the Northern District of Texas. Investment Company Institute v. Board of Governors, Mid-Nebraska Bancshares, Inc. v. Board of Gover­ filed September 1977, U.S.D.C. for the District of nors, filed July 1978, U.S.C.A. for the District of Columbia. Columbia. Robert Farms, Inc. v. Comptroller of the Currency, et Security Bancorp and Security National Bank v. al., filed November 1975, U.S.D.C. for the Southern Board of Governors, filed March 1978, U.S.C. A. for District of California. the Ninth Circuit. Vickars-Henry Corp. v. Board of Governors, filed De­ cember 1977, U.S.C.A. for the Ninth Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Al Financial and Business Statistics C ontents D om estic F inancial 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 banks A21 Banks with assets of $ 1 billion or more A6 Federal funds and repurchase agreements of A22 Banks in New York City large member banks A23 Balance sheet memoranda A24 Commercial and industrial loans P olicy Instruments A24 Major nondeposit funds of commercial banks A25 Gross demand deposits of individuals, A8 Federal Reserve Bank interest rates partnerships, and corporations A9 Member bank reserve requirements A 10 Maximum interest rates payable on time and savings deposits at federally insured institutions Financial M arkets A ll Federal Reserve open market transactions A25 Commercial paper and bankers dollar acceptances outstanding Federal Reserve Banks A26 Prime rate charged by banks on short-term business loans A12 Condition and Federal Reserve note statements A26 Terms of lending at commercial banks A 13 Maturity distribution of loan and security A ll Interest rates in money and capital markets holdings A28 Stock market—Selected statistics A29 Savings institutions—Selected assets and M onetary and Credit A ggregates liabilities A13 Bank debits and deposit turnover A14 Money stock measures and components Federal Finance A15 Aggregate reserves and deposits of member banks A30 Federal fiscal and financing operations A15 Loans and investments of all commercial banks A31 U.S. budget receipts and outlays A32 Federal debt subject to statutory limitation A32 Gross public debt of U.S. Treasury—Types and Commercial Bank A ssets and Liabilities ownership A33 U.S. government marketable securities— A 16 Last-Wednesday-of-month series Ownership, by maturity A17 Call-date series A34 U.S. government securities dealers— A18 Detailed balance sheet, September 30, 1978 Transactions, positions, and financing A3 5 Federal and federally sponsored credit agencies—Debt outstanding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin □ April 1980 Securities Markets and International Statistics Corporate Finance A54 U.S. international transactions—Summary A36 New security issues—State and local A55 U.S. foreign trade governments and corporations A55 U.S. reserve assets A37 Open-end investment companies—Net sales and A56 Foreign branches of U.S. banks—Balance sheet asset position data A37 Corporate profits and their distribution A58 Selected U.S. liabilities to foreign official A38 Nonfinancial corporations—Assets and liabilities institutions A38 Business expenditures on new plant and equipment A39 Domestic finance companies—Assets and Reported by Banks in the United States liabilities; business credit A58 Liabilities to and claims on foreigners A59 Liabilities to foreigners Real Estate A61 Banks’ own claims on foreigners A62 Banks’ own and domestic customers’ claims on A40 Mortgage markets foreigners A41 Mortgage debt outstanding A62 Banks’ own claims on unaffiliated foreigners A63 Claims on foreign countries—Combined domestic offices and foreign branches Consumer Installment Credit A42 Total outstanding and net change Securities H oldings and Transactions A43 Extensions and liquidations A64 Marketable U.S. Treasury bonds and notes— Foreign holdings and transactions Flow of Funds A64 Foreign official assets held at Federal Reserve Banks A44 Funds raised in U.S. credit markets A65 Foreign transactions in securities A45 Direct and indirect sources of funds to credit markets Reported by N onbanking B usiness Enterprises in the United States D om estic N onfinancial Statistics A66 Liabilities to unaffiliated foreigners A46 Nonfinancial business activity—Selected A67 Claims on unaffiliated foreigners measures A46 Output, capacity, and capacity utilization A47 Labor force, employment, and unemployment Interest and Exchange Rates A48 Industrial production—Indexes and gross value A50 Housing and construction A68 Discount rates of foreign central banks A51 Consumer and producer prices A68 Foreign short-term interest rates A52 Gross national product and income A68 Foreign exchange rates A53 Personal income and saving A69 Guide to Tabular Presentation and Statistical R eleases Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1979 1979 1980 Item Ql Q2 Q3 Q4 Oct. Nov. Dec. Jan. Feb. Monetary and credit aggregates (annual rates of change, seasonally adjusted iin percent)1 Member bank reserves 1 Total ............................................................................................................. -2.3 -3.7' 5.0' 12.6' 18.1' 6.7' 16.3' 2.8' -4.4 2 Required ...................................................................................................... -2.2 -3.5 4.8 11.4' 16.0' 7.4' 12.1' 4.2' 16.4 3 Nonborrowed ............................................................................................. -2.1r -7.5' 6.9' 7.0' -1.6' 10.4' 30.0' 9.6' 5.7 4 Monetary base2 ........................................................................................ 5.9 4.8 9.3 9.6' 10.4' 5.6' 7.6' 10.3' 18.7 Concepts of money and liquid assets3 5 M-1A ............................................................................................................ 0.2 7.8 8.8 4.7 1.6 5.2 6.2 3.6 11.9 6 M-1B ............................................................................................................ 4.8 10.7 10.1 5.3 2.2 4.4 7.5 4.3 11.7 7 M-2 ............................................................................................................... 6.3 10.2 10.3 7.2 6.0 5.8 7.7' 6.8' 10.8 8 M-3 ............................................................................................................... 7.9 8.8 10.3 9.9 9.4 7.4 7.5' 7.9 12.6 9 L .................................................................................................................... 10.3 13.1 11.7 9.3' 6.8' 5.1' 9.7' 8.5' 13.4 Time and savings deposits Commercial banks 10 Total ......................................................................................................... 7.7 1.8 9.1 12.5 13.7 11.7 0.9' 8.0 16.2 11 Savings4 ................................................................................................... -15.9 -7.4 -0.4 -15.1 -16.4 -29.7 -9.7 -12.3 -16.1 12 Small denomination time5 ................................................................ 21.3 22.5 21.5 28.6' 27.6 44.5 18.9' 24.6' 28.6 13 Large-denomination time6 ............................................................... 20.6 -7.9 6.0 22.6 28.0 15.2 -7.8 6.8' 30.6 14 Thrift institutions7 .................................................................................... 8.3 7.4 7.4 6.7 6.6 6.2 6.5' -1.1' 1.1 15 Total loans and investments at commercial banks8 ..................... 13.3 11.9 15.8 3.4 6.6 -.5 4.1 12.8 18.7 1979 1980 1979 1980 Q2 Q3 Q4 Ql Nov. Dec. Jan. Feb. Mar. Interest rates (levels, percent per annum) Short-term rates 16 Federal funds9 ............................................................................................ 10.18 10.94 13.58 15.07 13.18 13.78 13.82 14.13 17.19 17 Federal Reserve discount10 ................................................................... 9.50 10.21 11.92 12.51 12.00 12.00 12.00 12.52 13.00 18 Treasury bills (3-month market yield)11 ......................................... 9.38 9.67 11.84 13.35 11.79 12.04 12.00 12.86 15.20 19 Commercial paper (3-month)1 ....................................................... 9.85 10.64 ‘ 13.35 14.54 13.57 13.24 13.04 13.78 16.81 Long-term rates Bonds 20 U.S. government13 .............................................................................. 9.08 9.03 10.18 11.78 10.37 10.18 10.65 12.21 12.49 21 State and local government14 .......................................................... 6.22 6.28 7.20 8.23 7.30 7.22 7.35 8.16 9.17 22 Aaa utility (new issue)15 .................................................................. 9.66 9.64 11.21 13.22 11.42 11.25 11.73 13.57 14.00 23 Conventional mortgages'6 .................................................................... 10.35 11.13 12.38 n.a. 12.50 12.50 12.80 14.10 n.a. 1. Unless otherwise noted, rates of change are calculated from average amounts 4. Savings deposits exclude NOW and ATS accounts at commercial banks. outstanding in preceding month or quarter. Growth rates for member bank reserves 5. Small time deposits are those issued in amounts of less than $100,000. are adjusted for discontinuities in series that result from changes in Regulations 6. Large time deposits are those issued in amounts of $100,000 or more. D and M. 7. Savings and loan associations, mutual savings banks, and credit unions. 2. Includes total reserves (member bank reserve balances in the current week 8. Quarterly changes calculated from figures shown in table 1.23. Elus vault cash held two weeks earlier); currency outside the U.S. Treasury, Federal 9. Seven-day averages of daily effective rates (average of the rates on a given Reserve Banks and the vaults of commercial banks; and vault cash of nonmember date weighted by the volume of transactions at those rates). banks. 10. Rate for the Federal Reserve Bank of New York. 3. M-1 A: Averages of daily figures for (1) demand deposits at all commercial 11. Quoted on a bank-discount basis. banks other than those due to domestic banks, the U.S. government, and foreign 12. Beginning Nov. 1977, unweighted average of offering rates quoted by at banks and official institutions less cash items in the process of collection and least five dealers. Previously, most representative rate quoted by these dealers. Federal Reserve float; and (2) currency outside the Treasury, Federal Reserve Before Nov. 1979, data shown are for 90- to 119-day maturity. banks, and the vaults of commercial banks. 13. Market yields adjusted to a 20-year maturity by the U.S. Treasury. M-1B: M-1 A plus NOW and ATS accounts at banks and thrift institutions, 14. Bond Buyer series for 20 issues of mixed quality. credit union share draft accounts, and demand deposits at mutual savings banks. 15. Weighted averages of new publicly offered bonds rates Aaa, Aa and A by M-2: M-1B plus savings and small denomination time deposits at all depositary Moody’s Investors Service and adjusted to an Aaa basis. Federal Reserve com­ institutions, overnight RPs at commercial banks, overnight Eurodollars held by pilations. U.S. residents other than banks at Caribbean branches of member banks, and 16. Average rates on new commitments for conventional first mortgages on new money market mutual fund shares. homes in primary markets, unweighted and rounded to nearest 5 basis points, from M-3: M-2 plus large denomination time deposits at all depositary institutions Dept, of Housing and Urban Development. and term RPs at commercial banks and savings and loan associations. L: M-3 plus other liquid assets such as term Eurodollars held by U.S. residents other than banks, bankers acceptances, commercial paper. Treasury bills and other liquid Treasury securities and U.S. savings bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics □ April 1980 1.11 FACTORS AFFECTING MEMBER BANK RESERVES Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for week-ending Factors 1980 1980 Jan .p Feb.P Mar.P Feb. 13p Feb. 20P Feb. 21 p Mar. 5p Mar. 12 p Mar. 19 p Mar. 26p Supplying Reserve Funds 1 Reserve Bank credit outstanding .................................. 138,855 135,490 136,504 134,450 137,490 135,545 134,861 135,045 137,239 137,270 2 U.S. government securities1 ...................................... 117,855 115,028 115,902 114,574 116,924 113.242 114,901 114,220 115.653 116,837 3 Bought outright .......................................................... 117,493 114,842 115,473 114,431 116,383 113.242 114,487 113,925 115.653 116,638 4 Held under repurchase agreements ................... 362 186 429 143 541 0 414 295 0 199 5 Federal agency securities ............................................ 8,383 8,299 8,341 8,303 8,468 8,216 8,269 8,289 8,211 8,420 6 Bought outright .......................................................... 8,216 8,216 8,212 8,216 8,216 8,216 8,216 8,214 8,211 8,211 7 Held under repurchase agreements ................... 167 83 129 87 252 0 53 75 0 209 8 Acceptances ...................................................................... 104 67 76 40 207 0 129 13 0 36 9 Loans ................................................................................. 1,264 1,660 2,828 1,236 2,194 2,057 2,508 3,439 3,001 2,660 10 Float ................................................................................... 5,825 5,617 4,658 4,969 5,306 7,707 4,557 4,579 5,674 4,459 11 Other Federal Reserve assets ................................... 5,424 4,818 4,699 5,328 4,390 4,323 4,496 4,506 4,699 4,857 12 Gold stock ............................................................................. 11,156 11,172 11,172 11,172 11,172 11,172 11,172 11,172 11,172 11,172 13 Special drawing rights certificate account ................ 2,064 2,968 2,968 2,968 2,968 2,968 2,968 2,968 2,968 2,968 14 Treasury currency outstanding ...................................... 12,983 13,059 13,126 13,036 13,066 13,076 13,162 13,108 13,127 13,146 Absorbing Reserve Funds 15 Currency in circulation .................................................... 122,939 121,591 122,432 121,714 121,962 121,533 121,657 122,444 122,783 122,503 16 Treasury cash holdings ..................................................... 442 477 535 475 482 503 521 525 532 540 Deposits, other than member bank reserves, with Federal Reserve Banks 17 Treasury ........................................................................... 3,110 3,379 2,773 3,727 3,369 3,682 2,658 2,940 2,514 3,243 18 Foreign .............................................................................. 331 322 346 363 335 277 360 328 346 359 19 Other ................................................................................. 434 324 403 286 291 349 356 385 535 400 20 Other Federal Reserve liabilities and capital .......... 5,080 4,713 4,881 4,641 4,756 4,564 4,710 4,839 4,840 4,924 21 Reserve accounts2 .............................................................. 32,724 31,883 32,400 30,421 33,502 31,853 31,900 30,831 32,955 32,587 End-of-month figures Wednesday figures 1980 1980 Jan.P Feb./’ Mar.P Feb. 13p Feb. 20' Feb. 21 p Mar. 5r Mar. 12r Mar. 19r Mar. 26r Supplying Reserve Funds 22 Reserve bank credit outstanding ................................... 135,202 134,555 136,313 140,739 140,706 134,002 134,517 130,631 132,506 139,097 23 U.S. government securities1 ...................................... 116.311 115,171 116,657 117.659 118,416 112.301 113.442 110.378 111,808 117.830 24 Bought outright .......................................................... 116.311 114,550 115,734 116.660 116,182 112.301 113.442 110.378 111,808 117.830 25 Held under repurchase agreements ................... 0 621 923 999 2,234 0 0 0 0 0 26 Federal agency securities ............................................ 8,216 8,247 8,291 8,823 8,924 8,216 8,216 8,211 8,211 8,211 27 Bought outright .......................................................... 8,216 8,216 8,211 8,216 8,216 8,216 8,216 8,211 8,211 8,211 28 Held under repurchase agreements ................... 0 31 80 607 708 0 0 0 0 0 29 Acceptances ..................................................................... 0 205 171 281 825 0 0 0 0 0 30 Loans ................................................................................. 828 3,364 2,502 3,324 1,101 4,318 2,179 3,080 2,859 4,651 31 Float ................................................................................... 4,610 3,154 3,682 5,202 7,084 4,734 6,198 4,306 4,738 3,382 32 Other Federal Reserve assets .................................... 5,237 4,414 5,010 5,450 4,356 4,433 4,482 4,656 4,890 5,023 33 Gold stock ............................................................................. 11,172 11,172 11,172 11,172 11,172 11,172 11,172 11,172 11,172 11,172 34 Special drawing rights certificate account ................ 2,968 2,968 2,968 2,968 2,968 2,968 2,968 2,968 2,968 2,968 35 Treasury currency outstanding ....................................... 13,169 13,259 13,178 13,044 13,066 13,076 13,106 13,118 13,146 13,146 Absorbing Reserve Funds 36 Currency in circulation .................................................... 121,157 121,436 122,788 122,198 122,170 121,722 122,286 123,098 122,942 122,848 37 Treasury cash holdings ..................................................... 472 525 572 482 483 513 517 525 536 566 Deposits, other than member bank reserves, with Federal Reserve Banks 38 Treasury ........................................................................... 2,931 2,417 2,334 3,395 2,461 4,478 3,769 1,976 3,827 2,998 39 Foreign .............................................................................. 440 450 468 343 294 245 232 291 284 368 40 Other ................................................................................. 339 350 313 281 332 330 298 468 492 342 41 Other Federal Reserve liabilities and capital .......... 5,682 4,668 4,886 4,687 4,771 4,438 4,556 4,521 4,646 4,773 42 Reserve accounts2 .............................................................. 31,492 32,108 32,270 36,537 37,401 29,492 30,105 27,009 27,065 34,488 1. Includes securities loaned—fully guaranteed by U.S. government securities 2. Includes reserves of member banks, Edge Act corporations and U.S. agencies pledged with Federal Reserve Banks—and excludes (if any) securities sold and and branches of foreign banks. scheduled to be bought back under matched sale-purchase transactions. Note: For amounts of currency and coin held as reserves, see table 1.12 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 1980 Dec. July Aug. Sept. Oct .p Nov.p Dec./’ Jan.P Feb.P Mar./7 All member banks Reserves 1 At Federal Reserve Banks ............................... 31,158 31), 191 30,006 29,986 31,599 32,098 32,585 32.724 31,883 32.400 2 Currency and coin ............................................... 10,330 10,552 10,523 10,726 10,681 10,740 11,323 12,318 11,098 10,729 3 Total held1 .............................................................. 41,572 40.900 40,687 40,868 42,423 42,979 44,063 45,217 43,196 43,352 4 Required .............................................................. 41,447 40,710 40,494 40,863 42,002 42,770 43,560 44,902 43,026 42,907 5 Excess1 ................................................................. 125 190 193 5 421 209 503 315 170 445 Borrowings at Reserve Banks2 6 Total .......................................................................... 874 1,179 1,097 1,344 2,022 1,908 1,454 1,264 1,660 2,828 7 Seasonal .................................................................... 134 168 177 169 161 141 81 74 95 152 Large banks in New York City 8 Reserves held ............................................................. 7,120 6,605 6,408 6,437 6,655 6,695 7,206 7,781 6,980 7,276 9 Required ................................................................... 7,243 6,586 6,427 6,378 6,851 6,932 7,329 7,758 7,209 7,194 10 Excess ....................................................................... -123 19 -19 59 -196 -237 -123 23 -229 82 11 Borrowings2 ................................................................. 99 97 79 87 183 139 63 32 124 60 Large banks in Chicago 12 Reserves held ............................................................. 1,907 1,709 1,694 1,654 1,790 1,869 1,990 2,021 1,949 1,886 13 Required ................................................................... 1,900 1,713 1,706 1,760 1,859 1,950 2,001 2,059 1,941 1,961 14 Excess ....................................................................... 7 -4 -12 -106 -69 -81 -11 -38 8 -75 15 Borrowings2 ................................................................. 10 45 6 80 136 118 79 76 100 137 Other large banks 16 Reserves held ............................................................. 16,446 16,374 16,370 16,426 16,519 16,663 17,336 17,719 17,014 17,029 17 Required ................................................................... 16,342 16,339 16,321 16,491 16,796 17,000 17,369 17,967 17,281 17,135 18 Excess ....................................................................... 104 35 49 -65 -277 -337 -33 -248 -267 -106 19 Borrowings2 ................................................................. 276 517 484 600 856 804 697 642 729 1,479 All other banks 20 Reserves held ............................................................. 16,099 16,212 16,215 16,351 16,495 16,496 16,621 16,843 16,328 16,261 21 Required ................................................................... 15,962 16,072 16,040 16,234 16,424 16,420 16,539 16,779 16,267 16,233 22 Excess ....................................................................... 137 140 175 117 71 76 82 64 61 28 23 Borrowings2 ................................................................. 489 520 528 577 847 847 615 514 707 1,152 Edge corporations 24 Reserves held ............................................................. n.a. n.a. n.a. n.a. 90 308 333 336 330 317 25 Required ................................................................... n.a. n.a. n.a. n.a. 72 287 302 314 304 300 26 Excess ....................................................................... n.a. n.a. n.a. n.a. 18 21 31 22 26 17 U.S. agencies and branches 27 Reserves held ............................................................. n.a. n.a. n.a. n.a. n.a. 185 26 29 32 90 28 Required ................................................................... n.a. n.a. n.a. n.a. n.a. 181 20 25 24 84 29 Excess ....................................................................... n.a. n.a. n.a. n.a. n.a. 4 6 4 8 6 Weekly averages of daily figures for week (in 1980) ending Jan. 23p Jan. 30p Feb. 6p Feb. 13p Feb. 20p Feb. 21P Mar. 5p Mar. 12p Mar. 19p Mar. 26p All member banks Reserves 30 At Federal Reserve Banks ............................... 32,671 32,242 31,868 30,421 33,502 31,853 31,900 30,831 32,955 32,587 31 Currency and coin ............................................... 12,482 12,251 11,831 11,724 10,283 10,720 10,878 11,446 10,348 10,261 32 Total held1 .............................................................. 45,325 44,665 43,914 42,360 44,002 42,787 42,991 42,506 43,530 43,073 33 Required .............................................................. 45,082 44,386 43,358 42,531 43,402 43,015 42,481 42,367 43,307 42,941 34 Excess1 ................................................................. 243 279 556 -171 600 -228 510 139 223 132 Borrowings at Reserve Banks2 35 Total .......................................................................... 1,197 1,821 759 1,236 2,194 2,057 2,508 3,439 3,001 2,660 36 Seasonal .................................................................... 78 87 73 91 100 109 114 139 155 177 Large banks in New York City 37 Reserves held ............................................................. 7,693 7,546 7,440 6,609 7,422 6,673 7,020 6,865 7,325 7,083 38 Required ................................................................... 7,651 7,469 IMS 7,053 7,427 7,242 6,971 7,055 7,413 7,074 39 Excess ....................................................................... 42 77 265 -444 -5 -569 49 -190 -88 9 40 Borrowings2 ................................................................. 0 0 0 81 226 207 13 29 80 71 Large banks in Chicago 41 Reserves held ............................................................. 2,002 2,093 1,919 1,919 2,025 1,805 2,025 1,830 1,938 1,779 42 Required ................................................................... 2,045 2,009 1,986 1,903 2,004 1,891 1,898 1,907 2,004 1,985 43 Excess ....................................................................... -43 84 -67 16 21 -86 127 -77 -66 -206 44 Borrowings2 ................................................................. 0 236 0 125 148 47 291 288 0 117 Other large banks 45 Reserves held ............................................................. 17,881 17,723 17,270 16,542 17,517 16,689 17,210 16,521 17,106 16,789 46 Required ................................................................... 18,134 17,849 17,409 17,165 17,401 17,235 17,041 16,924 17,256 17,157 47 Excess ....................................................................... -253 -126 -139 -623 116 -546 169 -403 -150 -368 48 Borrowings2 ................................................................. 650 883 266 558 985 908 1,184 2,017 1,670 1,342 All other banks 49 Reserves held ............................................................. 16,883 16,851 16,509 16,122 16,451 16,306 16,302 16,111 16,252 16,326 50 Required ................................................................... 16,936 16,774 16,457 16,070 16,253 16,322 16,247 16,100 16,208 16,352 51 Excess ....................................................................... -53 77 52 52 198 -16 55 11 44 -26 52 Borrowings2 ................................................................. 547 702 493 472 835 895 1,020 1,105 1,251 1,130 Edge corporations 53 Reserves held ............................................................. 315 338 330 345 306 315 309 319 358 298 54 Required ................................................................... 281 277 317 310 296 301 279 296 335 282 55 Excess ....................................................................... 34 61 13 35 10 14 30 23 23 16 U.S. agencies and branches 56 Reserves held ............................................................. 37 31 22 46 29 30 52 86 101 101 57 Required ................................................................... 35 8 14 30 21 24 45 85 91 91 58 Excess ....................................................................... 2 23 8 16 8 6 7 1 10 10 1. Adjusted to include waivers of penalties for reserve deficiencies in accordance Reserve System. For weeks for which figures are preliminary, figures by class of with Board policy, effective Nov. 19, 1975, of permitting transitional relief on a bank do not add td total because adjusted data by class are not available, graduated basis over a 24-month period when a nonmember bank merged into an 2. Based on closing figures, existing member bank, or when a nonmember bank joins the Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics □ April 1980 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks' Averages of daily figures, in millions of dollars 1980, week ending Wednesday By maturity and source Mar. 5 Mar. 12 Mar. 19 Mar. 26 Apr. 2 Apr. 9 Apr. 16 Apr. 23 Apr. 30 One day and continuing contract 1 Commercial banks in U.S.......................................................... 46,980 45.824 42,320 2 Other depositary institutions, foreign banks and foreign official institutions, and U.S. government agencies 12,831 13,216 13.386 13,738 3 Nonbank securities dealers ..................................................... 1,695 1,863 1,626 1,556 4 All other ......................................................................................... 13,493 13,794 14,524 13,807 All other maturities 5 Commercial banks in U.S.......................................................... 4,988 4.848 4,990 6 Other depositary institutions, foreign banks and foreign official institutions, and U.S. government agencies 6,382 6,194 6,151 6,164 7 Nonbank securities dealers ..................................................... 2,188 2,186 2,301 2,290 8 All other ......................................................................................... 10,340 10,318 8.875 9,510 Memo: Federal funds and resale agreement loans in ma­ turities of one day or continuing contract 9 Commercial banks in U.S.......................................................... 14,824 12,814 13.440 13,582 10 Nonbank securities dealers ..................................................... 2,296 2,312 2.269 1,828 1. Banks with assets of $1 billion or more as of December 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments Al 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Loans to member banks Under sec. 10(b )1 Loans to all others .2 under sec. 13, last par Federal Reserve Under secs. 13 and 13a3 Bank 4 Regular rate Special rate Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 2/29/80 date rate 2/29/80 date rate 2/29/80 date rate 2/29/80 date rate Boston .......... 13 2/19/80 12 13 Vi 2/19/80 12 Vi 14 2/19/80 13 16 2/19/80 15 New York ... 13 2/15/80 12 13 Vi 2/15/80 12 Vi 14 2/15/80 13 16 2/15/80 15 Philadelphia . 13 2/19/80 12 i3k> 2/19/80 12 Vi 14 2/19/80 13 16 2/19/80 15 Cleveland .... 13 2/15/80 12 YiVi 2/15/80 12 Vz 14 2/15/80 13 16 2/15/80 15 Richmond ... 13 2/15/80 12 13^2 2/15/80 12 Vz 14 2/15/80 13 16 2/15/80 15 Atlanta ......... 13 2/15/80 12 13 Vz 2/15/80 \2Vz 14 2/15/80 13 16 2/15/80 15 Chicago ....... 13 2/15/80 12 \3Vz 2/15/80 nvz 14 2/15/80 13 16 2/15/80 15 St. Louis ...... 13 2/15/80 12 13 Vz 2/15/80 12Vi 14 2/15/80 13 16 2/15/80 15 Minneapolis . 13 2/15/80 12 13 Vz 2/15/80 nvi 14 2/15/80 13 16 2/15/80 15 Kansas City . 13 2/19/80 12 13Vi 2/19/80 12 Vi 14 2/19/80 13 16 2/19/80 15 Dallas ............ 13 2/15/80 12 131/2 2/15/80 12 Vz 14 2/15/80 13 16 2/15/80 15 San Francisco 13 2/15/80 12 13Vz 2/15/80 12 Vz 14 2/15/80 13 16 2/15/80 15 5 Range of rates in recent years Range F.R. Range F.R. Range F.R. (or Bank (or Bank (or Bank Effective date level)— of Effective date level)— of Effective date level)— of All F.R. N.Y. All F.R. N.Y. All F.R. N.Y. Banks Banks Banks In effect Dec. 31, 1970 ................ 5 Vz 5 Vz 1973— July 2 ................... 7 7 1977— Sept. 2 ................... 653/4 65% 8 Aug. 14 ................... 1-lVz IVz Oct. 26 ................... 1971— Jan. ............................... 5 V4-5Vz 5V4 23 ................... IVz IVz 661/2 15 ............................... 51/4 51/4 8 1978— Jan. 209 ................... - 6Vz 2129 ............................... 5-5!A 51/4 1974— Apr. 25 ................... 71/82-8 8 ................... 6Vz 6Vz ............................... 5-5 V4 5 30 ................... May 1121 ................... 6Vh-7 7 29 ............................... 35 5 Dec. 9 ................... 7-V+-8 73/4 ................... 1 7 Feb. 13 ............................... 4/4-5 5 16 ................... 73/4 73/4 July 103 ................... 7-7 Vi 7Y4 19 ............................... 43/4 43/4 6 ................... 7W73/4 71/4 July 16 ............................... 4^4-5 5 1975— Jan. 10 ................... 7V4 71/4 Aug. 21 ..................... 873/4 873/4 Nov. 2 1 3 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3 A 5 43-/54 5 543/4 24 . .. .. .. .. . . . . .. .. .. .. . . .. . . .. .. .. . . .. . 3 7 7 1 1 / / 4 4 7 7 1 1 / / 4 4 S O e c p t t . . 2 2 10 2 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-8 Vi 8 Vi 19 ............................... 43/4 Feb. 5 ................... 6/4-7l/4 63/4 ................... 8Vi 8Vi Dec. 13 ............................... 4k>-43/4 7 ................... 63/4 63/4 Nov. 1 ................... SVzr-9Vz 9Vi 17 ............................... 4'/2-43/4 4 Vz Mar. 10 ................... 6l/64-643/4 61/4 3 ................... 9 Vz 9Vi 24 ............................... 4Vi 4 Vz 14 ................... V 661/4 10 10 May 16 ................... 6-61/4 1979— July 20 ................... 1973— Jan. 15 ............................... 5 5 Aug. 2107 ................... 10—lOVi i1o01v/z2 F M M A e p a a b r r y . . . 2 23 6 4 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3 V 5 5 5 i V 3 - - A 5 5 z 3 V /4 i 5 5 5 5 V 3 V V /4 z z z 1976— J N a o n v . . 2 2 1 2 3 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 V 1 5 / i 4 V - - 6 5 z Vz 5 5 5 1 V V /4 i i S O e c p t t . 21 8 91 . . . . . .. . . . . . . . . . . .. . . . . . . . . . . .. . . . . .. . . . . . . . . . . .. . . . . . . . . 10 11 1V lO 1 -1 i V - 2 i ll 1 1 1 1 2 2 1 1 11 ............................... 5/4-6 6 26 ................... 51/4 51/4 10 ................... 12 18 ............................... 6 6 June 11 ............................... 6-6 Vz 6Vz 1977—Aug. 30 ................... 5W53/4 51/4 1980— Feb. 15 ................... 12-13 13 15 ............................... 6 Vz 6 Vz 31 ................... 5V^53/4 53/4 19 ................... 13 13 In effect Feb. 29, 1980 13 13 1. Advances secured to the satisfaction of the Federal Reserve Bank. Advances U.S. government obligations or any other obligations eligible for Federal Reserve secured by mortgages on 1- to 4-family residential property are made at the section Bank purchase. 13 rate. 4. Applicable to special advances described in section 201.2(e)(2) of Regulation 2. Advances to individuals, partnerships, or corporations other than member A. banks secured by direct obligations of, or obligations fully guaranteed as to prin­ 5. Rates under secs. 13 and 13a (as described above). For description and earlier cipal and interest by, the U.S. government or any agency thereof. data, see the following publications of the Board of Governors: Banking and 3. Discounts or eligible paper and advances secured by such paper or by Monetary Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1971- 1975, 1972-1976, and 1973-1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics □ April 1980 1.15 MEMBER BANK RESERVE REQUIREMENTS! Percent of deposits Requirements in effect Previous requirements Type of deposit, and deposit interval February 29, 1980 in millions of dollars Percent Effective date Percent Effective date Net demand2 0-2 ....................................................................................................................................... 7 12/30/76 IVi 2/13/75 2-10 .................................................................................................................................... 9Vz 12/30/76 10 2/13/75 10-100 ................................................................................................................................ ll3/4 12/30/76 12 2/13/75 100-400 ............................................................................................................................. 123/4 12/30/76 13 2/13/75 Over 400 ............................................................................................................................ 161/4 12/30/76 16 Vi 2/13/75 Time and savings2 3 4 Savings ............................................................................................................................... 3 3/16/67 3 Vi 3/2/67 Time5 0-5, by maturity 30-179 days ............................................................................................................. 3 3/16/67 3 Vi 3/2/67 180 days to 4 years................................................................................................ 2k> 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................................................................................................ 2Vi 1/8/76 3 12/12/74 4 years or more ...................................................................................................... 1 10/30/75 3 12/12/74 Legal limits Minimum Maximum Net demand Reserve city banks .................................................................................................... 10 22 Other banks ................................................................................................................. 7 14 3 10 Borrowings from foreign banks ................................................................................ 0 22 1. For changes in reserve requirements beginning 1963, see Board’s Annual (d) Effective with the reserve computation period beginning Nov. 16, 1978, Statistical Digest, 1971-1975 and for prior changes, see Board’s Annual Report for domestic deposits of Edge corporations are subject to the same reserve require­ 1976, table 13. ments as deposits of member banks. 2. (a) Requirement schedules are graduated, and each deposit interval applies 3. Negotiable order of withdrawal (NOW) accounts and time deposits such as to that part of the deposits of each bank. Demand deposits subject to reserve Christmas and vacation club accounts are subject to the same requirements as requirements are gross demand deposits minus cash items in process of collection savings deposits. ana demand balances due from domestic banks. 4. The average reserve requirement on savings and other time deposits must be (b) The Federal Reserve Act specifies different ranges of requirements for at least 3 percent, the minimum specified by law. reserve city banks and for other banks. Reserve cities are designated under a 5. Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent criterion adopted effective Nov. 9, 1972, by which a bank having net demand was imposed on large time deposits of $100,000 or more, obligations of affiliates, deposits of more than $400 mijlion is considered to have the character of business and ineligible acceptances. of a reserve city bank. The presence of the head office of such a bank constitutes Effective with the reserve maintenance period beginning Oct. 25, 1979, a mar­ designation of that place as a reserve city. Cities in which there are Federal Reserve ginal reserve requirement of 8 percent was added to managed liabilities in excess Banks or branches are also reserve cities. Any banks having net demand deposits of a base amount, and with the maintenance period beginning Apr. 3, 1980, the of $400 million or less are considered to have the character of business of banks requirement was increased to 10 percent. Managed liabilities are defined as large outside of reserve cities and are permitted to maintain reserves at ratios set for time deposits. Eurodollar borrowings, repurchase agreements against U.S. gov­ banks not in reserve cities. For details, see the Board’s Regulation D. ernment and federal agency securities, federal funds borrowings from nonmember (c) Effective Aug. 24, 1978, the Regulation M reserve requirements on net institutions, and certain other obligations. In general, the base for the marginal balances due from domestic banks to their foreign branches and on deposits that reserve requirement was originally $100 million or the average amount of the foreign branches lend to U.S residents were reduced to zero from 4 percent and managed liabilities held by a member bank, Edge corporation, or family of U.S. 1 percent, respectively. The Regulation D reserve requirement on borrowings branches and agencies of a foreign bank for the two statement weeks ending Sept. from unrelated^ banks abroad was also reduced to zero from 4 percent. 26, 1979. For the computation period beginning Mar. 20, 1980, the base was lowered by (a) 7 percent or (b) the decrease in an institution’s U.S. office gross loans to foreigners and gross balances due from foreign offices of other institutions between the base period (Sept. 13-26, 1979) and the week ending Mar. 12, 1980, whichever is greater. In addition, the base will be reduced further after Mar. 19, 1980, to the extent that such foreign loans and balances continue to decline. The minimum base remains at $100 million. Note. Required reserves must be held in the form of deposits with Federal Reserve banks or vault cash. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions Percent per annum Commercial banks Savings and loan associations and mutual savings banks Type and maturity of deposit In effect Mar. 31, 1980 Previous maximum In effect Mar. 31, 1980 Previous maximum Effective Effective Effective Percent Effective date date date date 1 Savings .......................................................................................... 5‘/4 7/1/79 5 Vi 7/1/79 5V4 (’) 2 Negotiable order of withdrawal accounts 2 ...................... 5 1/1/74 (3) 5 1/1/74 (3) Time accounts 4 Fixed ceiling rates by maturity 3 30-89 days ................................................................................ 5>/4 9/1/79 5 7/1/73 (3) (3) 4 90 days to 1 year ................................................................... 53/4 1/1/80 5 Vi 7/1/73 (6) 1/1/80 53/4 0) 6 5 7 2 2 1 V t t i o o t o 2 2 V 4 y i ea y y r e e s a a r r ^ s s . 5 5 . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 V 2 7 7/ / 1 1 / / 7 7 3 3 5 5 5 - - > V V /2 4 4 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 6 6 > ^ / 4 2 0 0 ) ) 6 6 5-V4 1 1 1/ / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 9 8 4 6 t t o o 6 8 y y e e a a r r s s 6 6 . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 771V/2a 12 1 / 1 2 / 3 1 / / 7 7 4 3 (7) IVa 11/1/73 V 7> A /2 12 1 / 1 2 / 3 1 / / 7 7 4 3 (7) 7IVi "il/l/ 73 ’ 1 11 0 8 Is s y u e e a d r s to o r g o m v o e r r e n m 6 e .. n .. t .. a .. l . .. u ... n .. i . t .. s . .. ( .. a .. l . l . .. m .... a .. t .. u .. r .. i . t .. i . e .. s .. ) . 8 .. .. . . . . . . . . . . . . . . . . . . . . . . . 8 Va 6 6/ / 1 1 / / 7 7 8 8 (3)7 -V 4 ' i 2/23/74 ' 8 8 6 6 / / 1 1 / / 7 7 8 8 (3s)) VA ' i 2/23/74 ' 12 Individual retirement accounts and Keogh (H.R. 10) plans (3 years or more)8-9 ......................................... 8 6/1/78 7-V4 7/6/77 6/1/78 VA 7/6/77 Special variable ceiling rates by maturity 13 6 months money market time deposits10 ...................... (n) (") (") (") (") (") (") (") 14 2 Vi years or more ................................................................. (12) (12) O3) (13) (12) (>3) <13) 1. July 1, 1973, for mutual savings bank; July 6, 1973 for savings and loan 11. Commercial banks, savings and loan associations, and mutual savings banks associations. were authorized to offer money market time deposits effective June 1, 1978. The 2. For authorized states only, federally insured commercial banks, savings and ceiling rate for commercial banks is the discount rate (auction average) on most loan associations, cooperative banks, and mutual savings banks in Massachusetts recently issued 6-month U.S. Treasury bills. Until Mar. 15, 1979, the ceiling rate and New Hampshire were first permitted to offer negotiable order of withdrawal for savings and loan associations and mutual savings banks was Va percentage point (NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was higher than the rate for commercial banks. Beginning Mar. 15, 1979, the Va per­ extended to similar institutions throughout New England on Feb. 27, 1976, and centage point interest differential is removed when the 6-month Treasury bill rate in New York State on Nov. 10, 1978, and in New Jersey on Jan. 1, 1980. is 9 percent or more. The full differential is in effect when the 6-month bill rate 3. No separate account category. is 83/4 percent or less. Thrift institutions may pay a maximum 9 percent when the 4. For exceptions with respect to certain foreign time deposits see the Federal 6-month bill rate is between 83/4 and 9 percent. Also effective March 15, 1979 Reserve Bulletin for October 1962 (p. 1279), August 1965 (p. 1084), and Feb­ interest compounding was prohibited on 6-month money market time deposits at ruary 1968 (p. 167). all offering institutions. For both commercial banks and thrift institutions, the 5. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was maximum allowable rates in March were as follows: March 6, 14.792; March 13, required for savings and loan associations, except in areas where mutual savings 14.956; March 20, 14.950; March 27, 15.700. banks permitted lower minimum denominations. This restriction was removed for 12. Effective Jan. 1, 1980, commercial banks, savings and loan associations, and deposits maturing in less than 1 year, effective Nov. 1, 1973. mutual savings banks are authorized to offer variable ceiling accounts with no 6. No minimum denomination. Until July 1, 1979, minimum denomination was required minimum denomination and with maturities of 2Vi years or more. The $1,000 except for deposits representing funds contributed to an Individual Retire­ maximum rate for commercial banks is 3/4 percentage points below the yield on ment Account (IRA) or a Keogh (H.R. 10) Plan established pursuant to the 2Vi year U.S. Treasury securities; the ceiling rate for thrift institutions is Va per­ Internal Revenue Code. The $1,000 minimum requirement was removed for such centage point higher than that for commercial banks. Effective March 1, a tem­ accounts in December 1975 and November 1976, respectively. porary ceiling of ll3/4 percent was placed on these accounts at commercial banks; 7. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for certificates the temporary ceiling is 12 percent at savings and loan associations and mutual maturing in 4 years or more with minimum denominations of $1,000; however, savings banks. the amount of such certificates that an institution could issue was limited to 5 13. Between July 1, 1979, and Dec. 31, 1979, commercial banks, savings and percent of its total time and savings deposits. Sales in excess of that amount, as loan associations, and mutual savings banks were authorized to offer variable well as certificates of less than $1,000, were limited to the 6Vi percent ceiling on ceiling accounts with no required minimum denomination and with maturities of time deposits maturing in 2Yi years or more. 4 years or more. The maximum rate for commercial banks was 1 Va percentage Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing in 4 points below the yield on 4-year U.S. Treasury securities; the ceiling rate for thrift years or more with minimum denomination of $1,000. There is no limitation on institutions was Va percentage point higher than that for commercial banks. the amount of these certificates that banks can issue. Note: Maximum rates that can be paid by federally insured commercial banks, 8. Accounts maturing in less than 3 years subject to fixed rate ceilings. See mutual savings banks, and savings and loan associations are established by the footnote 6 for minimum denomination requirements. Board of Governors of the Federal Reserve System, the Board of Directors of the 9. Effective January 1, 1980, commercial banks are permitted to pay the same Federal Deposit Insurance Corporation, and the Federal Home Loan Bank Board rate as thrifts on IRA and Keogh accounts and accounts of governmental units under the provisions of 12 CFR 217, 329, and 526, respectively. The maximum when such deposits are placed in the new 2Vi year or more variable ceiling cer­ rates on time deposits in denominations of $100,000 or more with maturities of tificates or in 26-week money market certificates regardless of the level of the 30-89 days were suspended in June 1970; such deposits maturing in 90 days or Treasury bill rate. more were suspended in May 1973. For information regarding previous interest 10. Must have a maturity of exactly 26 weeks and a minimum denomination of rate ceilings on all types of accounts, see earlier issues of the interest rate ceilings $10,000, and must be nonnegotiable. on all types of accounts, see earlier issues of the Federal Reserve Bulletin, the Federal Home Loan Bank Board Journal and the Annual Report of the Federal Deposit Insurance Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics □ April 1980 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1979 1980 Type of transaction 1977 1978 1979 Aug. Sept. Oct. Nov. Dec. Jan. Feb. U.S. Government Securities Outright transactions (excluding matched salepurchase transactions) Treasury bills 1 Gross purchases ............................................................. 13,738 16,628 16,623r 2,351 1,692 861r 2,752 2,464 0 187 2 Gross sales ....................................................................... 7,241 13,725 7,480 380 353 780 154 378 1,722 1,590 3 Exchange .......................................................................... 0 0 0 0 0 0 0 0 0 0 4 Redemptions .................................................................... 2,136 2,033 2,900r 0 200 300r 300 0 790 400 Others within 1 year1 5 Gross purchases ............................................................. 3,017 1,184 3,203 57 120 28 0 90 0 0 6 Gross sales ....................................................................... 0 0 0 0 0 0 0 0 0 0 7 Maturity shift ................................................................... . 4,499 -5,170 17,339 3,562 876 354 1,080 571 383 1,822 8 Exchange .......................................................................... -11,308 -2,036 0 -1,138 -2,016 -727 -403 -2,177 9 Redemptions .................................................................... j- 2,500 0 2,600r 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases ............................................................. 2,833 4,188 2,148r 699 354 35 0 398 0 0 11 Gross sales ....................................................................... 0 0 0 0 0 0 0 0 0 0 12 Maturity shift ................................................................... | -6,649 -178 - 12,693 -2,822 -876 -354 -1,080 -571 -383 -374 13 Exchange .......................................................................... 7,508 1,231 0 1,138 1,302 727 403 1,377 5 to 10 years 14 Gross purchases ............................................................. 758 1,526 523 140 73 0 0 81 0 0 15 Gross sales ....................................................................... o 0 0 0 0 0 0 0 0 0 16 Maturity shift ................................................................... V 584 2,803 -4,646 -740 0 0 0 0 0 -1,364 17 Exchange .......................................................................... 2,181 500 0 0 400 0 0 450 Over 10 years 18 Gross purchases ............................................................. 553 1,063 454 81 87 0 0 51 0 0 19 Gross sales ....................................................................... 0 0 0 0 0 0 0 0 0 0 2 21 0 M Ex a c t h u a r n it g y e sh . i . f .. t . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,565 2,545 1,619 0 305 0 0 0 0 0 314 0 0 0 0 0 - 3 8 5 4 0 All maturities1 22 Gross purchases ............................................................. 20,898 24,591 22,950r 3,327 2,326 924r 2,752 3,084 0 187 23 Gross sales ....................................................................... 7,241 13,725 7,480 380 353 780 154 378 1,722 1,590 24 Redemptions .................................................................... 4,636 2,033 5,500r 0 200 300r 300 0 790 400 Matched sale-purchase transactions 25 Gross sales ................................................................... 425,214 511,126 626,403 35,159 41,395 58,656 45,204 53,681 53,025 54,541 26 Gross purchases ........................................................ 423,841 510,854 623,245 35,480 41,583 58,671 45,979 49,738 55,557 54,584 Repurchase agreements 27 Gross purchases ........................................................ 178,683 151,618 107,374 10,539 10,850 10,599 4,303 7,251 5,704 5,407 28 Gross sales ................................................................... 180,535 152,436 107,291 12,226 10,380 11,336 3,869 6,643 6,872 4,787 29 Net change in U.S. government securities .......... 5,798 7,743 6,896 1,582 2,431 -878 3,507 -629 -1,148 -1,140 Federal Agency Obligations Outright transactions 30 Gross purchases ........................................................ 1,433 301 853 0 0 0 0 0 0 0 31 Gross sales ................................................................... 0 173 399 0 0 0 0 0 0 0 32 Redemptions ................................................................ 223 235 134 18 3 * 5 0 * Repurchase agreements 33 Gross purchases ........................................................ 13,811 40,567 37,321 4,057 5,016 5,146 1,992 2,383 3,049 2,403 34 Gross sales ................................................................... 13,638 40,885 36,960 4,544 4,069 6,188 1,075 2,863 3,543 2,372 35 Net change in federal agency obligations ............. 1,383 -426 681 -487 928 -1,045 917 -485 -494 31 Bankers Acceptances 36 Outright transactions, net ........................................... -196 0 0 0 0 0 0 0 0 0 37 Repurchase agreements, net ..................................... 159 -366 116 -684 578 -735 -48 434 -704 205 38 Net change in bankers acceptances......................... -37 -366 116 -684 578 -735 -48 434 -704 205 39 Total net change in System Open Market Account .................................................................... 7,143 6,951 7,693 412 3,937 -2,658 4,376 -679 -2,345 -903 1. Both gross purchases and redemptions include special certificates created Note. Sales, redemptions, and negative figures reduce holdings of the System when the Treasury borrows directly from the Federal Reserve, as follows (millions Open Market Account; all other figures increase such holdings. Details may not of dollars): Sept. 1977, 2,500; Mar. 1979, 2,600. add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Banks A ll 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1980 1980 Feb. 21 p Mar. 5p Mar. 12? Mar. 19p Mar. 26p Jan.P Feb.P Mar. Consolidated condition statement Assets 1 Gold certificate account ........................................................... 11,172 11,172 11,172 11,172 11,172 11,172 11,172 11,172 2 Special drawing rights certificate account ......................... 2,968 2,968 2,968 2,968 2,968 2,968 2,968 2,968 3 Coin .................................................................................................. 456 449 440 431 415 469 468 415 Loans 4 Member bank borrowings .................................................... 4,318 2,179 3,080 2,859 4,651 828 3,364 2,502 5 Other .......................................................................................... 0 0 0 0 0 0 0 0 Acceptances 6 Bought outright ....................................................................... 0 0 0 0 0 0 0 0 7 Held under repurchase agreements ................................ 0 0 0 0 0 0 205 171 Federal agency obligations 8 Bought outright ....................................................................... 8,216 8,216 8,211 8,211 8,211 8,216 8,216 8,211 9 Held under repurchase agreements ................................ 0 0 0 0 0 0 31 80 U.S. government securities Bought outright 10 Bills ......................................................................................... 41,254 42,395 39,331 40,276 45,947 45,264 43,503 43,851 11 Certificates—Special .......................................................... 0 0 0 0 0 0 0 0 12 Notes ...................................................................................... 56,411 56,411 56,411 56,814 57,164 56,494 56,411 57,164 13 Bonds ...................................................................................... 14,636 14,636 14,636 14,718 14,719 14,553 14,636 14,719 14 Total1 ...................................................................................... 112.301 113.442 110.378 111,808 117.830 116.311 114,550 115,734 15 Held under repurchase agreements ................................ 0 0 0 0 0 0 621 923 16 Total U.S. government securities ......................................... 112.301 113.442 110.378 111,808 117.830 116.311 115,171 116,657 17 Total loans and securities .......................................................... 124,835 123,837 121,669 122,878 130,692 125,355 126,987 127,621 18 Cash items in process of collection ...................................... 11,114 13,446 11,048 11,643 9,638 10,050 8,906 8,949 19 Bank premises ............................................................................. 411 411 428 430 430 411 411 430 20 Denominated in foreign currencies2 ................................. 2,112 2,130 2,229 2,245 2,245 2,192 2,075 2,334 21 All other .................................................................................... 1,910 1,941 1,999 2,215 2,348 2,634 1,928 2,246 22 Total assets .................................................................................... 154,978 156,354 151,953 153,982 159,908 155,251 154,915 156,135 Liabilities 23 Federal Reserve notes .............................................................. 109,615 110,146 110,946 110,763 110,683 108,927 109,170 110,597 Deposits Reserve accounts 24 Member banks .................................................................... 29,129 29,839 26,625 26,610 34,108 31,232 31,725 31,870 25 Edge Act Corporations .................................................... 335 224 321 370 299 244 328 308 26 U.S. agencies and branches of foreign banks ......... 28 42 63 85 81 16 55 92 27 Total ....................................................................................... 29,492 30,105 27,009 27,065 34,488 31,492 32,108 32,270 28 U.S. Treasury—General account ..................................... 4,478 3,769 1,976 3,827 2,998 2,931 2,417 2,334 29 Foreign—Official accounts .................................................. 245 232 291 284 368 440 450 468 30 Other .......................................................................................... 330 298 468 492 342 339 350 313 31 Total deposits .............................................................................. 34,545 34,404 29,744 31,668 38,196 35,202 35,325 35,385 32 Deferred availability cash items .................................. 6,380 7,248 6,742 6,905 6,256 5,440 5,752 5,267 33 Other liabilities and accrued dividends3 ............................ 1,948 2,011 2,012 2,112 2,224 2,425 2,106 2,173 34 Total liabilities ............................................................................. 152,488 153,809 149,444 151,448 157,359 151,994 152,353 153,422 Capital Accounts 35 Capital paid in ............................................................................. 1,155 1,158 1,161 1,159 1,160 1,153 1,153 1,159 36 Surplus ............................................................................................ 1,145 1,145 1,145 1,145 1,145 1,145 1,145 1,145 37 Other capital accounts .............................................................. 190 242 203 230 244 959 264 409 38 Total liabilities and capital accounts ..................................... 154,978 156,354 151,953 153,982 159,908 155,251 154,915 156,135 39 Memo: Marketable U.S. government securities held in custody for foreign and international account ......... 80,247 77,964 76,106 76,155 76,398 81,039 80,625 77,566 Federal Reserve note statement 40 Federal Reserve notes outstanding Tissued to Bank) .... 127,049 127,195 127,413 127,793 128,336 125,707 127,046 128,418 Collateral held against notes outstanding 41 Gold certificate account ........................................................... 11,172 11,172 11,172 11,172 11,172 11,172 11,172 11,172 42 Special Drawing Rights certificate account ...................... 2,968 2,968 2,968 2,968 2,968 2,968 2,968 2,968 43 Eligible paper .......................................................................... 1,576 1,039 1,907 2,031 2,311 635 1,473 1,665 111,333 112,016 111,36644 U.S1. 1g1o,6v2e2rnment1 1a1n,d88 5agency 1s1ec0u,9r3it2ies .......1..1..1..,.4..3...3........... 112,613 45 Total collateral ............................................................................. 127,049 127,195 127,413 127,793 128,336 125,707 127,046 128,418 1. Includes securities loaned—fully guaranteed by U.S. government securities 2. Beginning December 29, 1978, such assets are revalued monthly at market pledged with Federal Reserve Banks—and excludes (if any) securities sold and exchange rates. scheduled to be bought back under matched sale-purchase transactions. 3. Includes exchange-translation account reflecting, beginning December 29, 1978, the monthly revaluation at market exchange rates of foreign-exchange com­ mitments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Financial Statistics □ April 1980 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month Type and maturity 1980 1980 Feb. 27 Mar. 5 Mar. 12 Mar. 19 Mar. 26 Jan. 31 Feb. 29 Mar. 31 1Loans ............................................................................................... 4,318 2,179 3,080 2,859 4,651 828 3,364 2,502 2 Within 15 days ........................................................................ 4,292 2,128 2,996 2,535 4,620 813 3,324 2,458 3 16 days to 90 days................................................................... 26 51 84 324 31 15 40 44 4 91 days to 1 year .................................................................... 0 0 0 0 0 0 0 0 5 Acceptances ................................................................................... 0 0 0 0 0 0 205 171 6 Within 15 days ......................................................................... 0 0 0 0 0 0 205 171 7 16 days to 90 days ................................................................... 0 0 0 0 0 0 0 0 8 91 days to 1 year .................................................................... 0 0 0 0 0 0 0 0 9 U.S. government securities ..................................................... 112,301 113,442 110,378 111,808 117,830 116,311 115,171 116,657 10 Within 15 days1 ....................................................................... 4,841 3,692 3,863 5,844 5,960 3,878 3,086 4,238 11 16 days to 90 days .................................................................. 23,352 24,449 21,221 19,441 25,588 22,815 27,708 25,319 12 91 days to 1 year .................................................................... 30,348 31,539 31,532 32,317 31,976 36,211 30,615 32,907 13 Over 1 year to 5 years .......................................................... 28,886 28,888 28,888 29,144 29,244 27,885 28,888 29,131 14 Over 5 years to 10 years ..................................................... 11,860 11,860 11,860 11,967 11,967 12,774 11,860 11,967 15 Over 10 years .......................................................................... 13,014 13,014 13,014 13,095 13,095 12,748 13,014 13,095 16 Federal agency obligations ..................................................... 8,216 8,216 8,211 8,211 8,211 8,216 8,247 8,291 17 Within 15 days1 ....................................................................... 188 80 0 101 164 79 219 224 18 16 days to 90 days .................................................................. 268 341 443 342 279 546 268 279 19 91 days to 1 year .................................................................... 1,480 1,515 1,467 1,467 1,467 1,277 1,480 1,478 20 Over 1 year to 5 years .......................................................... 4,242 4,242 4,348 4,348 4,348 4,238 4,242 4,337 21 Over 5 years to 10 years ..................................................... 1,318 1,318 1,233 1,233 1,233 1,356 1,318 1,253 22 Over 10 years .......................................................................... 720 720 720 720 720 720 720 720 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 1980 Bank group, or type 1976 1977 1978 of customer Sept/ Oct/ Nov/ Dec/ Jan. Debits to demand deposits1 (seasonally adjusted) 1 All commercial banks ......... 29,180.4 34,322.8 40,297.8 54,318.3 53.454.7 51,853.9 53,967.2 59.086.2 2 Major New York City banks 11.467.2 13,860.6 15,008.7 21,118.1 19.681.7 19,223.2 20.498.1 23,678.0 3 Other banks ............................... 17.713.2 20,462.2 25,289.1 33,200.2 33,772.9 32,630.8 33.469.1 35.408.2 Debits to savings deposits2 (not seasonally adjusted) 4 All customers 174.0 417.7 655.9 823.9 750.6 724.3 856.2 5 Business3 ....... 21.7 56.7 78.2 95.0 85.3 88.1 92.8 6 Others .......... 152.3 361.0 577.8 728.9 665.3 636.2 763.4 Demand deposit turnover1 (seasonally adjusted) 7 All commercial banks ............ 116.8 129.2 139.4 173.1 170.2 165.8 172.4 189.1 8 Major New York City banks 411.6 503.0 541.9 711.4 639.1 643.0 684.0 763.4 9 Other banks ............................... 79.8 85.9 96.8 116.9 119.2 115.4 118.2 125.8 Savings deposit turnover2 (not seasonally adjusted) 10 All customers 1.6 1.9 3.1 4.0 3.7 3.6 4.3 11 Business3 ...... 4.1 5.1 6.9 8.4 7.8 8.4 9.3 12 Others .......... 1.5 1.7 2.9 3.7 3.5 3.4 4.0 1. Represents accounts of individuals, partnerships, and corporations, and of Note. Historical data—estimated for the period 1970 through June 1977, partly states and political subdivisions. on the basis of the debits series for 233 SMS As, which were available through June 2. Excludes negotiable order of withdrawal (NOW) accounts and special club 1977—are available from Publications Services, Board of Governors of the Federal accounts, such as Christmas and vacation clubs. Reserve System, Washington, D.C. 20551. Debits and turnover data for savings 3. Represents corporations and other profit-seeking organizations (excluding deposits are not available prior to July 1977. commercial banks but including savings and loan associations, mutual savings banks, credit unions, the Export-import Bank, and federally sponsored lending agencies). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Aggregates A 13 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1980 Item D 19 e 7 c 6 . D 19 e 7 c 7 . D 19 e 7 c 8 . D 19 e 7 c 9 . Sept. Dec. Jan. Feb. Seasonally adjusted Measures1 1 M-1A ..................................... 305.0 328.4 351.6 371.5 367.5 368.0 369.6 371.5 372.6 376.3 2 M-1B ....................................... 307.7 332.5 359.9 387.7 383.2 383.9 385.3 387.7 389.1 392.9 3 M-2 ........................................... 1.166.7 1,294.1 1,400.8 1,524.2' 1,499.7 1,507.2 1.514.5 1,524.2' 1,532.8' 1,546.6 4 M-3 .......................................... 1.299.7 1,460.3 1,622.2 1,773.6' 1.738.2 1,751.8 1.762.6 1,773.6' 1,785.3' 1,804.0 5 L2 ............................................. 1,523.5 1,715.5 1,926.3 2,141.3' 2.103.3 2,115.2' 2,124.2 2,141.3' 2,156.5 Components 6 Currency ............................... 80.7 88.7 97.6 106.1 104.8 105.4 105.9 106.1 107.3 108.2 7 Demand deposits ............... 224.4 239.7 253.9 265.4 262.7 262.7 263.7 265.4 265.3 268.1 8 Savings deposits ................. 447.7 486.5 476.0 417.7 445.3 435.9 422.2 417.7 412.9' 405.3 9 Small time deposits3 .......... 396.6 454.9 533.8 653.8' 614.2 627.5 645.8 653.8' 659.5' 669.3 10 Large time deposits4 .......... 118.0 145.2 194.7 219.1 207.4 213.6 218.3 219.1 222.2' 228.1 Not seasonally adjusted Measures1 11 M-1A ................................................................ 313.5 337.2 360.9 381.1 367.0 369.7 372.2 381.1 377.4 368.1 12 M-1B ................................................................. 316.1 341.3 369.3 397.3 382.7 385.5 387.8 397.3 393.9 384.6 13 M-2 .................................................................... 1,169.1 1,295.9 1,402.9 1,526.0' 1,498.2 1,507.1 1,509.9 1,526.0' 1,536.1' 1,538.4 14 M-3 .................................................................... 1,303.8 1,464.5 1,627.8 1,779.0' 1,736.1 1,752.4 1,759.1 1,779.0' 1,790.6' 1,796.0 15 L2 ....................................................................... 1,527.1 1,718.5 1,929.8 2,143.9' 2,094.6 2,113.4' 2,122.7 2,143.9' 2,163.2' n.a. Components 16 Currency .......................................................... 82.1 90.3 99.4 108.0 104.5 105.2 106.6 108.0 106.5 106.9 17 Demand deposits .......................................... 231.3 247.0 261.5 273.1 262.4 264.5 265.6 273.1 270.9 261.2 18 Other checkable deposits5 ........................ 2.7 4.1 8.3 16.2 15.7 15.8 15.7 16.2 16.5 16.5 19 Overnight RPs and Eurodollars6 ............ 13.6 18.6 23.3 24.1 26.1 25.6 23.5 24.1 24.9 25.1 20 Money market mutual funds ................... 3.4 3.8 10.3 43.6 33.7 36.9 40.4 43.6 49.1 56.7 21 Savings deposits ........................................... 444.9 483.2 472.8 414.8 445.6 434.6 420.0 414.8 410.3 402.2 22 Small time deposits3 .................................... 393.5 451.3 529.8 648.8' 612.7 627.3 640.8 648.8' 660.6' 672.5 23 Large time deposits4 .................................... 119.7 147.7 198.2 221.5 206.8 214.2 219.5 222.6 224.1 ' 228.3 1. Composition of the money stock measures is as follows: 2. L: M-3 plus other liquid assets such as term Eurodollars held by U.S. residents M-l A: Averages of daily figures for (1) demand deposits at all commercial banks other than banks, bankers acceptances, commercial paper, Treasury bills and other other than those due to domestic banks, the U.S. government, and foreign banks liquid Treasury securities, and U.S. savings bonds. and official institutions less cash items in the process of collection and Federal 3. Small time deposits are those issued in amounts of less than $100,000. Reserve float; and (2) currency outside the Treasury, Federal Reserve banks, and 4. Large time deposits are those issued in amounts of $100,000 or more and are the vaults of commercial banks. net of the holdings of domestic banks, thrift institutions, the U.S. government, M-1B: M-1A plus NOW and ATS accounts at banks and thrift institutions, credit money market mutual funds, and foreign banks and official institutions. union share draft accounts, and demand deposits at mutual savings banks. 5. Includes ATS and NOW balances at all institutions, credit union share draft M-2: M-1B plus savings and small-denomination time deposits at all depositary balances, and demand deposits at mutual savings banks. institutions, overpight RPs at commercial banks, overnight Eurodollars held by 6. Overnight (and continuing contract) RPs are those issued by commercial U.S. residents other than banks at Caribbean branches of member banks, and banks to the nonbank public, and overnight Eurodollars are those issued by Car­ money market mutual fund shares. ibbean branches of member banks to U.S. nonbank customers. M-3: M-2 plus large-denomination time deposits at all depositary institutions Note. Latest monthly and weekly figures are available from the Board's and term RPs at commercial banks and savings and loan associations. H.6(508) release. Back data are available from the Banking Section, Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Financial Statistics □ April 1980 1.22 AGGREGATE RESERVES AND DEPOSITS Member Banks Billions of dollars, averages of daily figures 1979 1980 Item D 19 e 7 c 7 . D 19 e 7 c 8 . D 19 e 7 c 9 . July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Seasonally adjusted 1 Reserves1 ................................................................................................... 36.00 41.16 43.51 40.78 41.11 41.43 42.19 43.07 43.51 43.51 43.40 2 Nonborrowed .......................................................................................... 35.43 40.29 42.03 39.61 40.03 40.09 40.17 41.16 42.03 42.27 41.74 3 Required ................................................................................................... 35.81 40.93 43.11 40.57 40.89 41.24 41.92 42.83 43.11 43.16 43.20 4 Monetary base2 ...................................................................................... 127.6 142.2 153.6 147.1 148.6 150.0 151.5 152.8 153.6 154.8 155.6 5 Deposits subject to reserve requirements3 ..................................... 567.6 616.1 644.7 619.4 625.4 631.5 638.2 642.0 644.7 643.9 647.7 6 Time and savings ................................................................................... 385.6 428.8 451.0 430.6 436.3 441.7 446.7 450.0 451.0 451.9 454.4 Demand 7 Private ................................................................................................... 178.5 185.1 191.9 186.9 187.0 188.1 189.8 190.0 191.9 189.6 191.3 8 U.S. government .............................................................................. 3.5 2.2 1.8 1.8 2.1 1.7 1.7 1.9 1.8 2.4 1.9 Not seasonally adjusted 9 Monetary base2 ...................................................................................... 129.8 144.6 156.2 147.9 148.4 149.4 151.3 153.5 156.2 156.1 154.0 10 Deposits subject to reserve requirements3 ..................................... 575.3 624.0 652.9 619.2 620.4 629.0 637.8 642.2 652.9 652.4 644.3 11 Time and savings ................................................................................... 386.4 429.6 452.0 429.8 434.1 439.4 445.8 449.1 452.0 454.6 455.8 Demand 12 Private ................................................................................................... 185.1 191.9 199.0 187.8 184.5 187.5 190.5 191.4 199.0 195.5 186.7 13 U.S. government .............................................................................. 3.8 2.5 1.9 1.6 1.7 2.1 1.6 1.7 1.9 2.2 1.9 1. Series reflects actual reserve requirement percentages with no adjustment to 3. Includes total time and savings deposits and net demand deposits as defined eliminate the effect of changes in Regulations D and M. There are breaks in series by Regulation D. Private demand deposits include all demand deposits except because of changes in reserve requirements effective Jan. 8 and Dec. 30, 1976; those due to the U.S. government, less cash items in process of collection and and Nov. 2, 1978. In addition, effective Jan. 1, 1976, statewide branching in New demand balances due from domestic commercial banks. York was instituted. The subsequent merger of a number of banks raised required reserves because of higher reserve requirements on aggregate deposits at these Note. Back data and estimates of the impact on required reserves and changes banks. in reserve requirements are shown in table 14 of the Board’s Annual Statistical 2. Includes total reserves (member bank reserve balances in the current week Digest, 1971-1975. glus vault cash held two weeks earlier); currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of commercial banks; and vault cash of nonmember banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Aggregates A15 1.23 LOANS AND INVESTMENTS All Commercial Banks* Billions of dollars; averages of Wednesday figures 1980 1980 Category D 19 e 7 c 7 . D 19 e 7 c 8 . D 1 e 9 c 7 . 9 P 1977 1978 1979 Dec. Dec. Dec.P Jan .p Feb.P Jan .p Feb./7 Seasonally adjusted Not seasonally adjusted 1 Total loans and securities2 ............................... 891.1 1,014.33 1,132.54 1,144.8 1,162.7 899.1 1,023.83 1,143.0 4 1,144.6 1,151.4 2 U.S. Treasury securities .................................... 99.5 93.4 93.8 93.2 94.8 100.7 94.6 95.0 94.1 95.5 3 Other securities .................................................... 159.6 173.13 191.5 4 193.1 195.2 160.2 173.93 192.3 192.7 194.2 4 Total loans and leases2 ..................................... 632.1 747.83 847.2 4 858.5 872.7 638.3 755.43 855.74 857.9 861.7 5 Commercial and industrial loans ............... 211.25 246.5 6 290.5 4 295.6 301.1 212.65 248.26 292.4 4 294.7 297.8 6 Real estate loans ............................................ 175.25 210.5 242.4 4 245.0 247.7 175.5 5 210.9 242.94 245.0 246.7 7 Loans to individuals ....................................... 138.2 164.9 182.7 4 183.7 184.4 139.0 165.9 183.8 183.7 182.7 8 Security loans .................................................. 20.6 19.4 18.3 18.0 17.7 22.0 20.7 19.6 18.3 17.3 9 Loans to nonbank financial institutions .. 25.85 27.18 30.03 4 30.07 31.1 26.3 5 27.68 30.8 4 30.4 30.4 10 Agricultural loans ........................................... 25.8 28.2 31.0 31.3 31.7 25.7 28.1 30.8 31.0 31.1 11 Lease financing receivables ......................... 5.8 7.4 9.5 9.8 9.9 5.8 7.4 9.5 9.8 9.9 12 All other loans ................................................. 29.5 43.6 3 42.6 44.4 49.1 31.5 46.63 45.9 45.1 45.8 Memo: 13 Total loans and investments plus loans sold2 9 7 ........................................................... 895.9 1,018.13 1,135.34 1,147.4 1,165.3 903.9 1,027.63 1,145.74 1,147.3 1,154.0 14 Total loans plus loans sold2 7........................... 636.9 751.63 850.0 4 861.1 875.3 643.0 759.23 858.44 860.5 864.3 15 Total loans sold to affiliates7 9 ........................ 4.8 3.8 2.8 2.7 2.6 4.8 3.8 2.8 2.7 2.6 16 Commercial and industrial loans plus loans sold7 9 ................................................... 213.9 5 248.5 10 292.34 297.3 302.8 215.35 250.110 294.2 4 296.4 299.5 17 Commercial and industrial loans sold7 9 . 2.7 1.910 1.8 1.7 1.7 2.7 1.910 1.8 1.7 1.7 18 Acceptances held ............................................ 7.5 6.8 8.5 8.3 9.1 8.6 7.5 9.4 8.8 9.0 19 Other commercial and industrial loans ... 203.7 5 239.7 282.0 287.2 292.0 203.95 240.9 283.1 285.8 288.7 20 To U.S. addressees11 ................................. 193.85 226.6 263.2 267.3 271.8 193.75 226.5 263.2 265.4 268.5 21 To non-U.S. addressees ........................... 9.9 5 13.1 18.8 19.9 20.2 10.3 5 14.4 19.8 20.4 20.2 22 Loans to foreign banks ..................................... 13.5 21.2 18.7 18.8 19.7 14.6 23.0 20.1 19.7 18.5 23 Loans to commercial banks in the United States ........................................... 54.1 57.3 77.8 78.2 78.5 56.9 60.3 81.9 81.1 82.5 1. Includes domestic chartered banks, U.S. branches, agencies, and New York 7. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million and investment company subsidiaries of foreign banks; and Edge Act corporations. commercial and industrial loans sold were reduced $700 million due to corrections 2. Excludes loans to commercial banks in the United States. of two banks in New York City. 3. As of Dec. 31, 1978, total loans and investments were reduced by $0.1 billion. 8. As of Dec. 31, 1978, nonbank financial loans were reduced $0.1 billion as “Other securities” were increased by $1.5 billion and total loans were reduced by the result of reclassifications. $1.6 billion largely as the result of reclassifications of certain tax-exempt obliga­ 9. Loans sold are those sold outright to a bank’s own foreign branches, non­ tions. Most of the loan reduction was in “all other loans.” consolidated nonbank affiliates of the bank, the bank’s holding company (if not 4. As of Jan. 3,1979, as the result of reclassifications, total loans and investments a bank), and nonconsolidated nonbank subsidiaries of the holding company. and total loans were increased by $0.6 billion. Business loans were increased by 10. As of Dec. 31, 1978, commercial and industrial loans sold outright were $0.4 billion and real estate loans by $0.5 billion. Nonbank financial loans were increased $0.7 billion as the result of reclassifications, but $0.1 billion of this reduced by $0.3 billion. amount was offset by a balance sheet reduction of $0.1 billion as noted above. 5. As of Dec. 31, 1977, as the result of loan reclassifications, business loans 11. United States includes the 50 states and the District of Columbia. were reduced by $0.2 billion and nonbank financial loans by $0.1 billion; real estate loans were increased by $0.3 billion. Note. Data are prorated averages of Wednesday data for domestic chartered 6. As of Dec. 31, 1978, commercial and industrial loans were reduced $0.1 banks, and averages of current and previous month-end data for foreign-related billion as a result of reclassifications. institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics □ April 1980 1.24 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars except for number of banks May July Aug. Sept. Jan. Feb. Mar. Domestically Chartered Commercial Banks' 1 Loans and investments ............................... 1,059.4 1,071.3 1,081.8 1,094.3 1,112.1 1,118.4 1,118.0 1,143.3 1.133.4 1,143.6 1.144.0 2 Loans, gross .................................................. 785.3 797.9 807.6 819.4 833.8 839.0 836.7 860.1 849.7 857.0 855.4 3 Interbank .................................................... 45.9 46.3 48.1 50.3 53.6 54.0 52.6 62.9 57.2 58.0 55.7 4 Commercial and industrial ................... 236.4 240.5 242.0 244.1 249.4 249.8 248.0 253.4 252.6 256.2 259.1 5 Other ........................................................... 503.0 511.2 517.4 525.0 530.9 535.3 536.1 543.7 540.0 542.9 540.7 6 U.S. Treasury securities ............................ 93.2 91.6 92.1 90.6 91.9 91.5 92.1 92.5 92.4 93.6 94.3 7 Other securities ............................................. 181.0 181.7 182.1 184.3 186.4 187.8 189.3 190.7 191.2 192.9 194.3 8 Cash assets, total .......................................... 158.8 146.3 140.2 145.7 148.5 160.7 158.1 146.4 148.4 149.9 153.9 9 Currency and coin .................................. 16.0 16.3 16.1 16.8 16.7 16.6 18.2 17.9 17.3 17.1 16.8 10 Reserves with Federal Reserve Banks 32.8 32.6 29.6 33.7 31.6 34.1 34.7 28.4 28.3 30.7 34.2 11 Balances with depositary institutions 44.6 40.8 41.2 41.1 40.7 45.5 43.7 37.7 43.7 43.4 43.1 12 Cash items in process of collection ... 65.4 56.5 53.4 54.1 59.5 64.6 61.5 62.4 59.0 58.7 59.8 13 Other assets .................................................... 52.7 55.1 53.9 53.8 57.5 57.8 59.3 61.2 63.1 65.0 66.0 14 Total assets/total liabilities and capital .. 1,270.9 1,272.7 1,275.9 1,293.8 1,318.2 1,336.9 1,335.4 1,351.0 1,344.9 1,358.4 1.364.0 15 Deposits ........................................................... 975.5 971.3 975.2 982.9 996.6 1,023.6 1,017.6 1,030.6 1.022.5 1,028.9 1,033.3 16 Demand ....................................................... 357.8 352.4 352.6 352.4 358.7 376.6 365.1 377.6 362.4 358.7 354.7 17 Savings ........................................................ 215.5 216.4 218.3 216.6 213.4 207.6 205.0 203.4 200.6 199.9 196.8 18 Time .................. ........................................ 402.3 402.5 404.2 413.8 424.5 439.4 447.4 449.7 459.6 470.3 481.8 19 Borrowings ..................................................... 132.0 137.1 .137.2 140.1 147.0 137.4 135.6 140.5 143.1 145.1 142.2 20 Other liabilities ............................................ 65.4 65.5 64.9 69.7 71.2 74.0 78.5 74.1 77.5 81.6 84.3 21 Residual (assets less liabilities) ............... 98.1 98.9 98.7 101.1 103.3 101.9 103.7 105.8 101.8 102.9 104.2 Memo: 22 U.S. Treasury note balances included in borrowing ............................................... 4.9 12.9 11.9 8.6 17.8 8.4 5.0 12.8 15.0 9.4 23 Number of banks .......................................... 14,616 14,620 14,584 14,607 14.616 14,605 14,608 14,610 14,594 14,609 14,626 All Commercial Banking Institutions2 24 Loans and investments ............................... 1.131.2 1,146.9 1.153.1 1.169.8 1.197.7 1,200.3 1,200.9 1,229.8 1,217.7 1,230.8 25 Loans, gross ................................................... 854.2 870.7 876.2 892.1 915.9 917.6 916.2 943.1 930.7 941.0 26 Interbank .................................................... 61.8 60.4 60.6 63.8 69.2 71.6 71.8 80.5 75.4 78.3 27 Commercial and industrial ................... 268.8 274.6 276.9 280.5 288.1 288.3 287.9 295.0 295.1 298.5 28 Other ........................................................... 523.6 535.7 538.6 547.8 558.6 557.7 556.6 567.6 560.1 564.2 29 U.S. Treasury securities ............................ 94.6 93.1 93.5 91.9 93.5 93.1 93.7 94.5 94.3 95.5 30 Other securities ............................................. 182.3 183.1 183.5 185.8 188.3 189.5 190.9 192.2 192.7 194.4 31 Cash assets, total .......................................... 176.5 167.8 160.4 166.0 172.2 179.9 176.7 169.5 166.5 168.8 32 Currency and coin .................................. 16.1 16.3 16.1 16.8 16.7 16.6 18.2 17.9 17.3 17.1 33 Reserves with Federal Reserve Banks 33.5 33.4 30.4 34.5 32.5 34.<5 35.6 29.0 28.9 31.3 34 Balances with depositary institutions 60.3 60.3 59.3 59.3 62.4 62.5 60.0 59.0 59.8 60.5 35 Cash items in process of collection ... 66.6 57.7 54.7 55.3 60.6 65.9 62.9 63.7 60.4 60.0 36 Other assets .................................................... 67.7 71.4 69.7 70.9 76.7 76.5 78.5 81.0 83.7 86.£ 37 Total assets/total liabilities and capital .. 1,375.5 1,386.1 1.383.2 1,406.7 1.446.5 1,456.7 1,456.1 1.480.3 1.468.0 1,486.5 38 Deposits ........................................................... 1.013.2 1,015.6 1.012.3 1.020.9 1.043.6 1,062.6 1,058.5 1.076.3 1.063.1 1,070.0 39 Demand ....................................................... 375.8 376.4 369.7 369.1 383.2 394.2 384.9 400.5 380.5 376.8 40 Savings ........................................................ 216.7 217.2 219.1 217.6 214.2 208.3 205.9 204.3 201.3 200.3 41 Time ............................................................. 420.7 422.0 432.5 434.2 446.2 460.1 467.7 471.5 481.3 492.9 42 Borrowings ..................................................... 159.5 165.4 165.8 169.5 182.1 171.6 169.5 180.5 179.5 182.9 43 Other liabilities ............................................ 102.8 104.2 104.4 113.1 115.2 118.5 122.2 115.4 121.1 128.4 44 Residual (assets less liabilities) ............... 100.0 100.9 100.8 103.2 105.6 104.0 105.8 108.1 104.2 105.2 Memo: 45 U.S. Treasury note balances included in borrowing ............................................... 4.9 12.9 11.9 8.6 17.8 8.4 5.0 12.8 15.0 8.1 46 Number of banks ......................................... 14,954 14,968 14,933 14,960 14,972 14,963 14,969 14.975 14,962 14,978 1. Domestically chartered commercial banks include all commercial banks in the Note. Figures are partly estimated. They include all bank-premises subsidiaries United States except branches of foreign banks; included are member and non­ and other significant majority-owned domestic subsidiaries. Data for domestically member banks, stock savings banks, and nondeposit trust companies. chartered commercial banks are for the last Wednesday of the month; data for 2. Commercial banking institutions include domestically chartered commercial other banking institutions are for last Wednesday except at end of quarter, when banks, branches and agencies of foreign banks. Edge Act and Agreement cor­ they are for the last day of the month. porations, and New York state foreign investment corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A ll 1.25 COMMERCIAL BANK ASSETS AND LIABILITIES Call-Date Series Millions of dollars, except for number of banks 1976 1977 1978 1976 1977 1978 Account Dec. 31 June 30 Dec. 31 June 30 Dec. 31 June 30 Dec. 31 June 30 Total insured National (all insured) 1 Loans and investments, gross ................................................ 827,696 854,733 914,779 956,431 476,610 488,240 523,000 542,218 Loans 2 Gross .............................................................................................. 578,734 601,122 657,509 695,443 340,691 351,311 384,722 403,812 3 Net .................................................................................................. 560,077 581,143 636,318 672,207 329,971 339,955 372,702 390,630 Investments 4 U.S. Treasury securities ........................................................... 101,461 100,568 99,333 97,001 55,727 53,345 52,244 50,519 5 Other .............................................................................................. 147,500 153,042 157,936 163,986 80,191 80,583 86,033 87,886 6 Cash assets .................................................................................... 129,562 130,726 159,264 157,393 76,072 74,641 92,050 90,728 7 Total assets/total liabilities1 ..................................................... 1,003,970 1,040,945 1,129,712 1,172,772 583.304 599,743 651,360 671,166 8 Deposits .......................................................................................... 825,003 847,372 922,657 945,874 469,377 476,381 520,167 526,932 9 U.S. government ........................................................................ 3,022 2,817 7,310 7,956 1,676 1,632 4,172 4,483 10 Interbank ....................................................................................... 44,064 44,965 49,843 47,203 23,149 22,876 25,646 22,416 11 Other .............................................................................................. 285,200 284,544 319,873 312,707 163,346 161,358 181,821 176,025 Time and savings 12 Interbank ....................................................................................... 8,248 7,721 8,731 8,987 4,907 4,599 5,730 5,791 13 Other .............................................................................................. 484,467 507,324 536,899 569,020 276,296 285,915 302,795 318,215 14 Borrowings .................................................................................... 75,291 81,137 89,339 98,351 54,421 57,283 63,218 68,948 15 Total capital accounts ............................................................... 75,061 75,502 79,082 83,074 41,319 43,142 44,994 47,019 16 Memo: Number of banks ........................................................ 14,397 14,425 14,397 14,381 4,735 4,701 4,654 4,616 State member (all insured) Insured nonmember 17 Loans and investment, gross .................................................. 144,000 144,597 152,514 157,464 207,085 221,896 239,265 256,749 Loans 18 Gross .............................................................................................. 102,277 102,117 110,243 115,736 135,766 147,694 162,543 175,894 19 Net ................................................................................................... 99,474 99,173 107,205 112,470 130,630 142,015 156,411 169,106 Investments 20 U.S. Treasury securities ........................................................... 18,849 19,296 18,179 16,886 26,884 27,926 28,909 29,595 21 Other .............................................................................................. 22,874 23,183 24,091 24,841 44,434 46,275 47,812 51,259 22 Cash assets .................................................................................... 32,859 35,918 42,305 43,057 20,631 20,166 24,908 23,606 23 Total assets/total liabilities1 ..................................................... 189,579 195,452 210,442 217,384 231,086 245,748 267,910 284,221 24 Deposits .......................................................................................... 149,491 152,472 163,436 167,403 206,134 218,519 239,053 251,539 Demand 25 U.S. government ........................................................................ 429 371 1,241 1,158 917 813 1,896 2,315 26 Interbank ....................................................................................... 19,295 20,568 22,346 23,117 1,619 1,520 1,849 1,669 27 Other .............................................................................................. 52,204 52,570 57,605 55,550 69,648 70,615 80,445 81,131 Time and savings 28 Interbank ....................................................................................... 2,384 2,134 2,026 2,275 956 988 973 920 29 Other .............................................................................................. 75,178 76,827 80,216 85,301 132,993 144,581 153,887 165,502 30 Borrowings .................................................................................... 17,310 19,697 21,736 23,167 3,559 4,155 4,384 6,235 31 Total capital accounts ............................................................... 13,199 13,441 14,182 14,670 17,542 18,919 19,905 21,384 32 Memo: Number of banks ........................................................ 1,023 1,019 1,014 1,005 8,639 8,705 8,729 8,760 Noninsured nonmember Total nonmember 33 Loans and investments, gross ................................................ 18,819 22,940 24,415 28,699 225,904 244,837 263,681 285,448 Loans 34 Gross .............................................................................................. 16,336 20,865 22,686 26,747 152,103 168,559 185,230 202,641 35 Net ................................................................................................... 16,209 20,679 22,484 26,548 146,840 162,694 178,896 195,655 Investments 36 U.S. Treasury securities ........................................................... 1,054 993 879 869 27,938 28,919 29,788 30,465 37 Other .............................................................................................. 1,428 1,081 849 1,082 45,863 47,357 48,662 52,341 38 Cash assets .................................................................................... 6,496 8,330 9,458 9,360 27,127 28,497 34,367 32,967 39 Total assets/total liabilities1 ..................................................... 26,790 33,390 36,433 42,279 257,877 279,139 304,343 326,501 40 Deposits .......................................................................................... 13,325 14,658 16,844 19,924 219,460 233,177 255,898 271,463 Demand 41 U.S. government ........................................................................ 4 8 10 8 921 822 1,907 2,323 42 Interbank ....................................................................................... 1,277 1,504 1,868 2,067 2,896 3,025 3,718 3,736 43 Other .............................................................................................. 3,236 3,588 4,073 4,814 72,884 74,203 84,518 85,946 Time and savings 44 Interbank ....................................................................................... 1,041 1,164 1,089 1,203 1,997 2,152 2,063 2,123 45 Other .............................................................................................. 7,766 8,392 9,802 11,831 140,760 152,974 163,690 177,334 46 Borrowings .................................................................................... 4,842 7,056 6,908 8,413 8,401 11,212 11,293 14,649 47 Total capital accounts ............................................................... 818 893 917 962 18,360 19,812 20,823 22,346 48 Memo: Number of banks ........................................................ 275 293 310 317 8,914 8,998 9,039 9,077 1. Includes items not shown separately. For Note see table 1.24 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics □ April 1980 1.26 COMMERCIAL BANK ASSETS AND LIABILITIES Detailed Balance Sheet, September 30, 1978 Millions of dollars, except for number of banks Member banks1 Insured Non­ Asset account commercial Large banks member banks Total All other banks1 New York City of Other City Chicago large 1 Cash bank balances, items in process ....................................................... 158,380 134,955 43,758 5,298 47,914 37,986 23,482 2 Currency and coin ....................................................................................... 12,135 8,866 867 180 2,918 4,901 3,268 3 Reserves with Federal Reserve Banks ................................................. 28,043 28,041 3,621 1,152 12,200 11,067 3 4 Demand balances with banks in United States ................................ 41,104 25,982 12,821 543 3,672 8,945 15,177 5 Other balances with banks in United States ...................................... 4,648 2,582 601 15 648 1,319 2,066 6 Balances with banks in foreign countries ............................................ 3,295 2,832 331 288 1,507 705 463 7 Cash items in process of collection ........................................................ 69,156 66,652 25,516 3,119 26,969 11,049 2,504 8Total securities held—Book value .............................................................. 262,199 179,877 20,808 7,918 58,271 92,881 82,336 9 U.S. Treasury ................................................................................................ 95,068 65,764 9,524 2,690 22,051 31,499 29,315 10 Other U.S. government agencies ........................................................... 40,078 25,457 1,828 1,284 7,730 14,616 14,622 11 States and political subdivisions .............................................................. 121,260 85,125 9,166 3,705 27,423 44,831 36,136 12 All other securities ....................................................................................... 5,698 3,465 291 240 1,048 1,887 2,234 n 94 66 19 47 28 14 Trading-account securities ........................................................................ 6,833 6,681 3,238 708 2,446 290 151 15 U.S. Treasury ........................................................................................... 4,125 4,103 2,407 408 1,210 78 23 16 Other U.S. government agencies ...................................................... 825 816 401 82 278 55 9 17 States and political subdivisions ......................................................... 1,395 1,381 363 117 794 107 14 18 All other trading account securities .................................................. 394 316 67 101 145 3 78 1Q 94 66 19 47 28 20 Bank investment portfolios ....................................................................... 255,366 173,196 17,570 7,210 55,825 92,591 82,185 21 U.S. Treasury ........................................................................................... 90,943 61,661 7,117 2,282 20,840 31,422 29,293 22 Other U.S. government agencies ...................................................... 39,253 24,641 1,426 1,201 7,452 14,561 14,613 23 States and political subdivisions.......................................................... 119,865 83,745 8,803 3,588 26,629 44,724 36,123 24 All other portfolio securities ............................................................... 5,305 3,149 224 138 903 1,884 2,156 25 Federal Reserve stock and corporate stock ............................................ 1,656 1,403 311 111 507 475 253 26 Federal funds sold and securities resale agreement ............................. 41,258 31,999 3,290 1,784 16,498 10,427 9,365 27 Commercial banks ....................................................................................... 34,256 25,272 1,987 1,294 12,274 9,717 9,090 28 Brokers and dealers .................................................................................... 4,259 4,119 821 396 2,361 541 140 29 Others .............................................................................................................. 2,743 2,608 482 94 1,863 169 135 30 Other loans, gross ............................................................................................. 675,915 500,802 79,996 26,172 190,565 204,069 175,113 31 Less: Unearned income on loans ............................................................... 17,019 11,355 675 107 3,765 6,809 5,664 32 Reserves for loan loss ........................................................................ 7,431 5,894 1,347 341 2,256 1,949 1,537 33 Other loans, net ................................................................................................ 651,465 483,553 77,974 25,724 184,544 195,311 167,912 Other loans, gross, by category 34 Real estate loans .............................................................................................. 203,386 138,730 10,241 2,938 52,687 72,863 64,656 35 Construction and land development ..................................................... 25,621 19,100 2,598 685 9,236 6,581 6,521 36 Secured by farmland .................................................................................. 8,418 3,655 23 34 453 3,146 4,763 37 Secured by residential properties ........................................................... 117,176 81,370 5,362 1,559 31,212 43,236 35,806 38 1- to 4-family residences ........................................................................ 111,674 77,422 4,617 1,460 29,774 41,570 34,252 39 FHA-insured or VA-guaranteed .................................................... 7,503 6,500 508 44 3,446 2,502 1,003 40 Conventional ........................................................................................ 104,171 70,922 4,109 1,417 26,328 39,068 33,249 41 Multifamily residences ........................................................................... 5,502 3,948 746 99 1,438 1,665 1,554 42 FHA-insured ........................................................................................ 399 340 132 27 88 92 59 43 Conventional ........................................................................................ 5,103 3,609 613 72 1,350 1,573 1,495 44 Secured by other properties ..................................................................... 52,171 34,605 2,258 660 11,786 19,901 17,566 45 Loans to financial institutions ....................................................................... 37,072 34,843 12,434 4,342 15,137 2,930 2,228 46 REITs and mortgage companies ............................................................ 8,574 8,162 2,066 801 4,616 680 412 47 Domestic commercial banks ..................................................................... 3,362 2,618 966 165 1,206 281 744 48 Banks in foreign countries ........................................................................ 7,359 7,187 3,464 268 2,820 635 171 49 Other depositary institutions .................................................................... 1,579 1,411 290 76 785 261 167 50 Other financial institutions ....................................................................... 16,198 15,465 5,649 3,033 5,710 1,073 733 51 Loans to security brokers and dealers ...................................................... 11,042 10,834 6,465 1,324 2,846 199 207 52 Other loans to purchase or carry securities ............................................ 4,280 3,532 410 276 1,860 985 747 53 Loans to farmers except real estate ........................................................... 28,054 15,296 168 150 3,781 11,196 12,758 54 Commercial and industrial loans ................................................................. 213, 123 171,815 39,633 13,290 67,833 51,059 41,309 55 Loans to individuals ........................................................................................ 161,599 110,974 7,100 2,562 40,320 60,993 50,624 56 Installment loans .......................................................................................... 131,571 90,568 5,405 1,711 33,640 49,811 41,003 57 Passenger automobiles ........................................................................... 58,908 37,494 1,077 209 11,626 24,582 21,414 58 Residential repair and modernization .............................................. 8,526 5,543 331 60 2,088 3,064 2,983 59 Credit cards and related plans ............................................................ 21,938 19,333 2,268 1,267 9,736 6,062 2,605 60 Charge-account credit cards ............................................................ 17,900 16,037 1,573 1,219 8,192 5,053 1,863 61 Check and revolving credit plans .................................................. 4,038 3,296 695 47 1,545 1,009 742 62 Other retail consumer goods ............................................................... 19,689 13,296 427 57 5,242 7,570 6,393 63 Mobile homes ....................................................................................... 9,642 6,667 179 19 2,563 3,905 2,976 64 Other ....................................................................................................... 10,047 6,629 249 38 2,678 3,664 3,417 65 Other installment loans .......................................................................... 22,510 14,902 1,302 119 4,948 8,533 7,608 66 Single-payment loans to individuals ...................................................... 30,027 20,406 1,694 851 6,680 11,182 9,621 67 All other loans .................................................................................................. 17,360 14,778 3,545 1,290 6,100 3,844 2,582 68 Total loans and securities, net....................................................................... 956,579 696,833 102,383 35,536 259,820 299,094 259,867 69 Direct lease financing ..................................................................................... 6,717 6,212 1,145 96 3,931 1,041 505 70 Fixed assets—Buildings, furniture, real estate ...................................... 22,448 16,529 2,332 795 6,268 7,133 5,926 71 Investment in unconsolidated subsidiaries ............................................... 3,255 3,209 1,642 188 1,282 96 46 72 Customer acceptances outstanding ............................................................ 16,557 16,036 8,315 1,258 6,054 409 521 73 Other assets ......................................................................................................... 34,559 30,408 11,323 1,000 12,810 5,275 4,249 74 Total assets .......................................................................................................... 1,198,495 904,182 170,899 44,170 338,079 351,034 294,595 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A19 1.26 Continued Member banks1 Insured Non- Liability or capital account commerical Large banks member banks Total All other banks1 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 85 Accumulated for personal loan payments ........................................... 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 89 States and political subdivisions .............................................................. 59,087 40,010 1,952 1,554 16,483 20,020 19,077 90 Foreign governments, central banks, etc ............................................ 6,672 6,450 3,780 1,145 1,401 124 222 91 Commercial banks in United States ....................................................... 7,961 7,289 2,077 999 3,585 629 672 92 Banks in foreign countries ........................................................................ 1,381 1,161 829 103 219 9 220 93 Savings deposits ................................................................................................ 223,326 152,249 10,632 2,604 54,825 84,188 71,077 94 Individuals and nonprofit organizations ............................................... 207,701 141,803 9,878 2,448 51,161 78,316 65,897 95 Corporations and other profit organizations ...................................... 11,216 7,672 519 148 3,195 3,809 3,544 96 U.S. government .......................................................................................... 82 65 2 3 24 35 17 97 States and political subdivisions .............................................................. 4,298 2,682 215 4 437 2,025 1,616 98 All other ........................................................................................................... 30 27 18 8 2 3 99 Total deposits ...................................................................................................... 960,918 701,195 114,753 29,248 254,087 303,107 259,733 100 Federal funds purchased and securities sold under agreements to repurchase ............................................................................................. 91,981 85,582 21,149 8,777 41,799 13,857 6,398 101 Commercial banks ....................................................................................... 42,174 39,607 6,991 5,235 21,609 5,773 2,566 102 Brokers and dealers .................................................................................... 12,787 11,849 2,130 1,616 6,381 1,722 939 103 Others ............................................................................................................... 37,020 34,126 12,028 1,926 13,809 6,362 2,894 104 Other liabilities for borrowed money ........................................................ 8,738 8,352 3,631 306 3,191 1,225 386 105 Mortgage indebtedness ................................................................................... 1,767 1,455 234 27 701 491 316 106 Bank acceptances outstanding ..................................................................... 16,661 16,140 8,398 1,260 6,070 412 521 107 Other liabilities .................................................................................................. 27,124 23,883 8,600 1,525 9,020 4,477 3,494 108 Total liabilities ................................................................................................... 1,107,188 836,607 157,026 41,144 314,868 323,569 270,849 109 Subordinated notes and debentures ........................................................... 5,767 4,401 1,001 79 2,033 1,287 1,366 110 Equity capital ..................................................................................................... 85,540 63,174 12,871 2,947 21,177 26,178 22,380 111 Preferred stock ............................................................................................... 88 36 0 0 5 31 52 112 Common stock ............................................................................................... 17,875 12,816 2,645 570 4,007 5,594 5,064 113 Surplus ............................................................................................................. 32,341 23,127 4,541 1,404 8,148 9,034 9,217 114 Undivided profits .......................................................................................... 33,517 26,013 5,554 921 8,680 10,858 7,509 115 Other capital reserves ................................................................................. 1,719 1,182 132 52 337 661 538 116 Total liabilities and equity capital ................................................................ 1,198,495 904,182 170,899 44,170 338,079 351,034 294,595 Memo: 117 Demand deposits adjusted2 ........................................................................... 252,337 171,864 18,537 5,576 60,978 86,774 80,472 Average for last 15 or 30 days 118 Cash and due from bank ................................................................................ 146,283 124,916 36,862 6,030 45,731 36,293 21,379 119 Federal funds sold and securities purchased under agreements to resell ............................................................................................................. 43,873 33,682 4,272 1,887 16,007 11,517 10,307 120 Total loans ........................................................................................................... 651,874 483,316 76,750 25,722 184,790 196,054 168,558 121 Time deposits of $100,000 or more ........................................................... 183,614 150,160 32,196 13,216 65,776 38,972 33,454 122 Total deposits ..................................................................................................... 944,593 687,543 107,028 28,922 250,804 300,789 257,062 123 Federal funds purchased and securities sold under agreements to repurchase ................................................................................................... 92,685 86,635 22,896 9,473 40,541 13,725 6,053 124 Other liabilities for borrowed money ........................................................ 8,716 8,326 3,679 370 3,211 1,067 390 125 Standby letters of credit outstanding.......................................................... 18,820 17,658 10,063 1,477 4,820 1,297 1,162 126 Time deposits of $100,000 or more ........................................................... 186,837 152,553 32,654 13,486 66,684 39,728 34,284 127 Certificates of deposit ................................................................................. 160,227 129,667 27,950 11,590 56,383 33,743 30,560 128 Other time deposits ...................................................................................... 26,610 22,886 4,704 1,896 10,301 5,985 3,724 129 Number of banks ............................................................................................... 14,390 5,593 12 9 153 5,419 8,810 1. Member banks exclude and nonmember banks include 13 noninsured trust Note. Data include consolidated reports, including figures for all bank-premises companies that are members of the Federal Reserve System. subsidiaries and other significant majority-owned domestic subsidiaries. Securities 2. Demand deposits adjusted are demand deposits other than domestic com­ are reported on a gross basis before deductions of valuation reserves. Back data mercial interbank and U.S. government, less cash items reported as in process of in lesser detail were shown in previous issues of the Bulletin. collection. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Financial Statistics □ April 1980 1.27 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on December 31, 1977, Assets and Liabilities Millions of Dollars, Wednesday figures Account Jan. 30 Feb. 6 Feb. 13 Feb. 20 Feb. 27 Mar. 5 p Mar. 12 p Mar. 19 p Mar. 26p 1 Cash items in process of collection ............................... 48,944 51,510 55,598 60,209 48,648 54,144 51,064 53,577 49,845 2 Demand deposits due from banks in the United States ................................................................................ 18,161 17,092 20,630 18,191 18,871 17,697 17,995 18,480 17,870 3 All other cash and due from depositary institutions 28,544 28,814 36,658 37,329 29,843 30,031 27,697 27,023 33,998 4 Total loans and securities .................................................. 516,124 517,988 516,488 520,476 517,096 523,444 519,763 520,232 514,619 Securities 5 U.S. Treasury securities .................................................... 35,690 35,375 35,343 35,399 35,454 37,250 35,951 34,483 35,128 6 Trading account ................................................................ 5,245 5,344 5,105 5,168 5,122 7,082 5,761 4,978 5,506 7 Investment account, by maturity ............................... 30,446 30,032 30,238 30,231 30,332 30,169 30,190 29,505 29,622 8 One year or less ........................................................... 7,425 7,246 7,318 7,346 7,495 7,301 7,408 6,761 6,938 9 Over one through five years ................................... 18,323 18,134 18,165 18,228 18,180 18,168 18,124 18,094 18,050 10 Over five years ............................................................. 4,698 4,652 4,755 4,658 4,657 4,700 4,659 4,650 4,634 11 Other securities .................................................................... 72,692 73,212 72,788 72,816 72,899 72,906 73,872 73,062 72,657 12 Trading account ................................................................ 3,399 3,775 3,268 3,249 3,264 3,148 4,005 3,184 2,795 13 Investment account .......................................................... 69,293 69,437 69,521 69,567 69,634 69,758 69,867 69,878 69,862 14 U.S. government agencies ........................................ 15,857 15,890 15,901 15,912 15,848 15,868 15,849 15,840 15,772 15 States and political subdivision, by maturity .... 50,760 50,866 50,920 50,977 51,117 51,220 51,354 51,403 51,474 16 One year or less ....................................................... 6,347 6,325 6,298 6,375 6,270 6,499 6,526 6,501 6,484 17 Over one year .......................................................... 44,413 44,541 44,622 44,601 44,846 44,721 44,828 44,902 44,990 18 Other bonds, corporate stocks and securities ... 2,677 2,681 2,699 2,678 2,670 2,670 2,664 2,635 2,616 Loans 19 Federal funds sold1 ............................................................. 27,894 28,182 25,940 25,987 24,527 26,030 24,337 25,302 20,978 20 To commercial banks ..................................................... 20,178 20,195 20,155 20,477 18,190 18,949 17,510 19,496 16,950 21 To nonbank brokers and dealers in securities ...... 5,286 5,504 4,310 4,037 4,318 5,147 4,313 3,949 2,917 22 To others ............................................................................. 2,430 2,482 1,475 1,473 2,018 1,934 2,514 1,857 1,111 23 Other loans, gross ................................................................ 392,327 393,709 394,959 398,879 396,843 399,875 398,267 400,100 398,585 24 Commercial and industrial ........................................... 157,001 158,122 159,291 159,810 158,912 159,644 160,494 161,216 160,218 25 Bankers’ acceptances and commercial paper .... 4,302 4,499 4,768 5,174 4,740 4,645 4,044 3,925 3,545 26 All other ......................................................................... 152,699 153,623 154,523 154,637 154,172 154,999 156,450 157,291 156,673 27 U.S. addresses .......................................................... 146,239 147,283 148,189 148,245 147,805 148,572 150,072 150,971 150,267 28 Non-U.S. addresses ............................................... 6,460 6,340 6,334 6,392 6,368 6,427 6,378 6,320 6,406 29 Real estate .............................................................................. 101,314 101,323 101,558 101,878 102,192 102,313 102,758 103,098 103,282 30 To individuals for personal expenditures ................ 73,481 73,338 73,262 73,201 73,296 73,319 73,082 73,204 73,121 To financial institutions 31 Commercial banks in the United States ............. 2,812 3,260 2,954 3,376 3,419 3,172 3,287 3,728 3,622 32 Banks in foreign countries ...................................... 6,526 6,493 6,761 6,976 6,707 7,073 6,616 6,693 6,511 33 Sales finance, personal finance companies, etc . 8,628 8,639 8,719 9,574 9,587 10,352 9,415 8,984 9,644 34 Other financial institutions ...................................... 16,135 16,128 16,207 16,254 16,060 16,401 16,394 16,135 16,180 35 To nonbank brokers and dealers in securities .... 6,238 6,143 6,051 7,169 6,630 6,924 6,093 6,542 5,898 36 To others for purchasing and carrying securities2 . 2,499 2,481 2,475 2,503 2,461 2,476 2,466 2,448 2,419 37 To finance agricultural production ............................ 4,957 4,947 4,922 4,909 4,932 4,942 4,990 5,005 4,990 38 All other ............................................................................. 12,735 12,833 12,758 13,226 12,648 13,259 12,671 13,047 12,699 39 Less: Unearned income ..................................................... 7,231 7,162 7,201 7,236 7,251 7,199 7,232 7,285 7,326 40 Loan loss reserve .................................................... 5,248 5,239 5,342 5,368 5,375 5,419 5,434 5,430 5,404 41 Other loans, net .................................................................... 379,848 381,218 382,416 386,274 384,217 387,257 385,602 387,385 385,855 42 Lease financing receivables .............................................. 8,102 8,136 8,148 8,252 8,227 8,264 8,281 8,307 8,357 43 All other assets ...................................................................... 64,598 64,483 64,682 65,402 65,715 67,344 66,986 66,209 65,471 44 Total assets ............................................................................. 684,475 688,023 702,205 709,860 688,400 700,924 691,786 693,828 690,160 Deposits 45 Demand deposits ................................................................. 189,480 193,521 201,101 202,868 185,378 196,138 190,856 194,565 183,737 46 Mutual savings banks ..................................................... 619 640 627 659 549 641 601 654 561 47 Individuals, partnerships, and corporations .......... 131,838 132,623 137,540 140,682 128,202 133,208 134,532 131,724 127,798 48 States and political subdivisions ................................ 5,280 5,182 4,732 5,051 4,661 4,690 4,363 4,920 4,491 49 U.S. government .............................................................. 774 1,101 1,380 1,365 1,821 3,264 1,937 3,048 1,733 50 Commercial banks in the United States .................. 31,655 34,341 38,155 36,334 32,015 34,441 30,941 35,364 31,694 51 Banks in foreign countries ........................................... 8,237 8,059 8,187 8,172 8,301 9,070 8,989 9,258 8,232 52 Foreign governments and official institutions ....... 2,211 1,944 1,919 1,890 1,779 2,032 1,588 1,671 1,958 53 Certified and officers’ checks ....................................... 8,866 9,630 8,560 8,715 8,050 8,792 7,904 7,926 7,269 54 Time and savings deposits ................................................. 269,746 270,769 270,956 270,690 271,911 273,841 274,156 275,671 275,923 55 Savings ................................................................................. 72,866 73,307 72,946 72,816 72,290 72,508 71,837 71,294 71,222 56 Individuals and nonprofit organizations ............. 68,416 68,866 68,465 68,439 67,961 68,235 67,655 67,216 67,165 57 Partnerships and corporations operated for profit ....................................................................... 3,724 3,693 3,696 3,651 3,630 3,590 3,531 3,433 3,435 58 Domestic governmental units ................................. 704 727 766 707 684 668 633 631 610 59 All other ........................................................................ 22 20 18 18 15 14 17 14 11 60 Time ...................................................................................... 196,880 197,463 198,010 197,874 199,620 201,332 202,319 204,377 204,702 61 Individuals, partnerships, and corporations ...... 163,861 164,136 164,621 164,728 166,226 167,923 168,711 170,629 170,715 62 States and political subdivisions ............................ 22,306 22,558 22,661 22,456 22,686 22,550 22,695 22,694 22,635 63 U.S. government .......................................................... 423 425 427 410 410 406 372 373 375 64 Commercial banks in the United States ............. 5,429 5,480 5,442 5,436 5,538 5,610 5,818 5,969 6,097 65 Foreign governments, official institutions and banks ....................................................................... 4,862 4,865 4,860 4,845 4,760 4,843 4,722 4,711 4,879 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks ............... 299 21 2,831 476 3,423 1,490 1,987 1,741 3,398 67 Treasury tax-and-loan notes ........................................ 9,916 5,136 5,188 5,928 4,959 1,645 274 1,764 6,098 68 All other liabilities for borrowed money3 ............... 105,732 110,774 113,826 119,277 109,450 113,931 110,300 106,281 104,938 69 Other liabilities and subordinated note and debentures ...................................................................... 63,009 60,979 61,803 64,312 66,893 67,357 67,624 67,349 69,470 70 Total liabilities ....................................................................... 638,183 641,200 655,705 663,552 642,014 654,402 645,198 647,371 643,564 71 Residual (total assets minus total liabilities)4 ............ 46,291 46,822 46,499 46,308 46,386 46,522 46,588 46,457 46,596 1. Includes securities purchased under agreements to resell. 4. This is not a measure of equity capital for use in capital adequacy analysis 2. Other than financial institutions and brokers and dealers. or for other analytic uses. 3. Includes federal funds purchased and securities sold under agreements to repurchase; for information on these liabilities at banks with assets of $1 billion or more on Dec. 31, 1977, see table 1.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A21 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $1 Billion or More on December 31, 1977 Assets and Liabilities Millions of dollars, Wednesday figures Account Jan. 30 Feb. 6 Feb. 13 Feb. 20 Feb. 27 Mar. 5p Mar 12p Mar. 19p Mar. 26P 1 Cash items in process of collection .................................................... 46,840 49,355 53,312 57,075 46,298 51,517 48,583 51,055 47,590 2 Demand deposits due from banks in the United States ............ 17,350 16,297 19,810 17,269 18,213 17,055 17,302 17,740 17,273 3 All other cash and due from depositary institutions ................... 26,476 27,095 34,241 35,003 27,956 28,233 25,974 25,220 31,689 4 Total loans and securities ....................................................................... 481,597 483,235 481,944 486,062 482,493 488,539 485,182 485,747 480,565 Securities 5 U.S. Treasury securities ........................................................................ 33,216 32,883 32,841 32,860 32,901 34,702 33,414 31,950 32,586 6 Trading account .................................................................................... 5,206 5,296 5,050 5,110 5,053 7,016 5,698 4,921 5,440 7 Investment account, by maturity .................................................... 28,010 27,586 27,791 27,750 27,848 27,686 27,716 27,028 27,146 8 One year or less .............................................................................. 6,917 6,738 6,801 6,822 6,971 6,789 6,898 6,246 6,423 9 Over one through five years ....................................................... 16,805 16,610 16,656 16,693 16,645 16,618 16,577 16,551 16,508 10 Over five years ................................................................................. 4,288 4,238 4,334 4,235 4,232 4,:279 4,240 4,232 4,215 11 Other securities ......................................................................................... 66,928 67,468 67,039 67,038 67,111 67,135 68,030 67,224 66,821 12 Trading account .................................................................................... 3,285 3,683 3,187 3,143 3,164 3,077 3,936 3,103 2,719 13 Investment account ............................................................................. 63,643 63,785 63,852 63,895 63,947 64,058 64,094 64,121 64,102 14 U.S.government agencies ...................................................... 14,777 14,796 14,797 14,809 14,738 14,752 14,697 14,698 14,629 15 States and political subdivision, by maturity......................... 46,348 46,466 46,514 46,566 46,699 46,796 46,897 46,950 47,020 16 One year or less .......................................................................... 5,784 5,766 5,743 5,816 5,713 5,928 5,927 5,928 5,918 17 Over one year ............................................................................... 40,564 40,701 40,771 40,750 40,986 40,868 40,970 41,022 41,101 18 Other bonds, corporate stocks and securities ...................... 2,518 2,522 2,540 2,519 2,510 2,510 2,500 2,472 2,453 Loans 19 Federal funds sold1 ................................................................................. 25,320 25,349 23,370 23,613 21,975 23,320 21,964 23,075 19,098 20 To commercial banks ........................................................................ 18,213 18,090 18,195 18,555 16,090 16,736 15,622 17,735 15,411 21 To nonbank brokers and dealers in securities ........................... 4,726 4,833 3,756 3,631 3,913 4,702 3,869 3,532 2,625 22 To others ................................................................................................ 2,381 2,426 1,419 1,428 1,972 1,882 2,472 1,808 1,062 23 Other loans, gross .................................................................................... 367,679 369,094 370,299 374,213 372,190 375,050 373,493 375,268 373,835 24 Commercial and industrial ................................................................ 149,060 150,104 151,326 151,766 150,823 151,439 152,294 152,938 152,004 25 Bankers’ acceptances and commercial paper ........................ 4,211 4,406 4,676 5,075 4,647 4,541 3,955 3,843 3,464 26 All other ............................................................................................. 144,849 145,698 146,650 146,691 146,176 146,898 148,339 149,095 148,540 27 U.S. addressees ........................................................................... 138,435 139,403 140,362 140,348 139,856 140,518 142,009 142,823 142,182 28 Non-U.S. addressees ................................................................. 6,414 6,295 6,288 6,343 6,319 6,380 6,330 6,272 6,357 29 Real estate ............................................................................................. 95,073 95,113 95,350 95,676 96,999 96,119 96,549 96,883 97,064 30 To individuals for personal expenditures .................................... 64,868 64,730 64,663 64,619 64,723 64,740 64,499 64,650 64,585 To financial institutions 31 Commercial banks in the United States ................................. 2,742 3,186 2,879 3,295 3,341 3,096 3,205 3,652 3,544 32 Banks in foreign countries ........................................................... 6,443 6,427 6,686 6,907 6,640 6,972 6,554 6,624 6,445 33 Sales finance, personal finance companies, etc ................... 8,461 8,464 8,541 9,391 9,400 10,174 9,248 8,821 9,480 34 Other financial institutions .......................................................... 15,692 15,691 15,756 15,811 15,629 15,974 15,967 15,723 15,760 35 To nonbank brokers and dealers in securities........................... 6,159 6,074 5,974 7,096 6,534 6,834 6,005 6,448 5,808 36 To others for purchasing and carrying securities2 ................... 2,270 2,257 2,254 2,288 2,247 2,260 2,245 2,230 2,201 37 To finance agricultural production ............................................... 4,796 4,790 4,764 4,753 4,776 4,786 4,834 4,851 4,831 38 All other .................................................................................................. 12,113 12,257 12,105 12,610 12,077 12,654 12,092 12,448 12,115 39 Less: Unearned income ........................................................................ 6,604 6,539 6,574 6,605 6,618 6,564 6,600 6,649 6,688 40 Loan loss reserve ........................................................................ 4,943 5,020 5,032 5,058 5,066 5,105 5,118 5,120 5,088 41 Other loans, net ....................................................................................... 356,132 357,535 358,693 362,550 360,506 363,381 361,774 363,498 362,060 42 Lease financing receivables .................................................................. 7,887 7,920 7,932 8,034 8,004 8,041 8,058 8,082 8,130 43 All other assets ......................................................................................... 62,765 62,571 62,736 63,557 63,814 65,448 65,064 64,294 63,478 44 Total assets .................................................................................................. 642,914 646,473 659,974 667,000 646,778 658,832 650,164 652,138 648,725 Deposits 45 Demand deposits ...................................................................................... 178,015 182,095 189,285 190,501 173,858 184,243 179,161 182,756 172,436 46 Mutual savings banks ......................................................................... 592 613 600 636 527 610 578 625 539 47 Individuals, partnerships, and corporations ............................... 122,774 123,564 128,222 130,922 119,161 123,926 125,157 122,583 118,783 48 States and political subdivisions ..................................................... 4,638 4,660 4,071 4,520 3,925 4,165 3,850 4,122 3,930 49 U.S. government ................................................................................. 688 982 1,256 1,183 1,660 2,962 1,736 2,810 1,591 50 Commercial banks in the United States ..................................... 30,367 33,025 36,844 34,810 30,806 33,065 29,700 34,100 30,454 51 Banks in foreign countries ................................................................ 8,182 7,996 8,106 8,118 8,226 9,006 8,922 9,208 8,176 52 Foreign governments and official institutions ........................... 2,211 1,943 1,918 1,886 1,772 2,031 1,585 1,671 1,954 53 Certified and officer’s checks .......................................................... 8,564 9,333 8,268 8,425 7,780 8,478 7,632 7,637 7,009 54 Time and savings deposits .................................................................... 250,454 251,365 251,555 251,325 252,516 254,391 254,660 256,149 256,414 55 Savings ..................................................................................................... 67,406 67,822 67,474 67,348 66,865 67,044 66,423 65,901 65,859 56 Individuals and nonprofit organizations .................................. 63,295 63,721 63,348 63,315 62,867 63,104 62,572 62,154 62,121 57 Partnerships and corporations operated for profit ............. 3,445 3,415 3,418 3,379 3,360 3,324 3,264 3,182 3,180 58 Domestic governmental units ..................................................... 644 666 691 637 623 602 569 551 546 59 All other ............................................................................................. 21 20 18 18 15 14 17 14 11 60 Time ......................................................................................................... 183,048 183,543 184,081 183,977 185,650 187,347 188,237 190,248 190,555 61 Individuals, partnerships, and corporations ........................... 152,341 152,549 153,020 153,135 154,564 156,242 156,952 158,823 158,922 62 States and political subdivisions ................................................. 20,281 20,508 20,628 20,446 20,662 20,524 20,656 20,662 20,574 63 U.S. government ............................................................................. 415 417 410 393 396 393 358 359 361 64 Commercial banks in the United States ................................. 5,159 5,204 5,163 5,158 5,267 5,345 5,548 5,694 5,819 65 Foreign governments, official institutions, and banks....... 4,852 4,865 4,860 4,845 4,760 4,843 4,722 4,711 4,879 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks .................................. 286 21 2,651 345 3,199 1,356 1,741 1,548 3,204 67 Treasury tax-and-loan notes ............................................................. 9,189 4,796 4,815 5,491 4,585 1,506 251 1,580 5,726 68 All other liabilities for borrowed money3 .................................. 100,091 104,869 107,821 113,184 103,808 108,001 104,604 100,769 99,362 69 Other liabilities and subordinated note and debentures ....... 61,648 59,594 60,447 62,922 65,512 65,902 66,271 66,000 68,125 70 Total liabilities .......................................................................................... 599,685 602,739 616,575 623,768 603,478 615,400 606,688 608,801 605,267 71 Residual (total assets minus total liabilities)4 ............................... 43,230 43,733 43,399 43,231 43,301 43,432 43,475 43,337 43,458 1. Includes securities purchased under agreements to resell. 4. This is not a measure of equity capital for use in capital adequacy analysis 2. Other than financial institutions and brokers and dealers. or for other analytic uses. 3. Includes federal funds purchased and securities sold under agreements to repurchase; for information on these liabilities at banks with assets of $1 billion or more on Dec. 31, 1977, see table 1.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Financial Statistics □ April 1980 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1980 Account Jan. 30 Feb. 6 Feb. 13 Feb. 20 Feb. 27 Mar. 5p Mar. 12? Mar. 19p Mar. 26p 1 Cash items in process of collection .................................................... 19,002 19,249 22,831 19,693 17,180 19,536 18.042 19,946 18,803 2 Demand deposits due from banks in the United States ............ 12,022 11,402 14,699 11,745 13,401 12,146 12,484 13,192 13,053 3 All other cash and due from depositary institutions ................... 5,653 7,209 10,084 11,143 6,692 8,793 7,250 6,284 8,657 4 Total loans and securities1 .................................................................... 112,296 111,503 111,307 113,733 112,243 112,262 111,192 113,442 109,617 Securities 6 7 Investment account, by maturity .................................................... 5,775 5.804 5,880 5,857 5,805 6,003 5,978 5,623 5.602 8 One year or less .............................................................................. 1,034 1,194 1,225 1,288 1,227 1,290 1,291 940 935 9 Over one through five years ....................................................... 4,051 3,935 3,980 3,904 3,913 4,001 4,021 4,029 4,017 10 Over five years ................................................................................. 690 674 674 664 664 712 666 654 650 11 V 13 Investment account ............................................................................. 12,243 12,294 12,324 12,321 12,387 12,549 12,554 12,589 12,627 14 U.S. government agencies ........................................................... 2,425 2,417 2,412 2,416 2,409 2,407 2,412 2,407 2,423 15 States and political subdivision, by maturity ......................... 9,213 9,269 9,303 9,296 9,376 9,538 9,534 9,584 9,604 16 One year or less .......................................................................... 1,505 1,542 1,544 1,588 1,492 1,693 1,674 1,672 1,677 17 Over one year ............................................................................... 7,708 7,727 7,759 7,707 7,883 7,844 7,861 7,912 7,927 18 Other bonds, corporate stocks and securities ...................... 605 608 608 610 603 604 607 599 599 Loans 19 Federal funds sold3 ................................................................................. 9,266 7,755 7,033 7,526 7,551 6,076 6,251 8,160 5,279 20 To commercial banks ......................................................................... 6,552 5,360 5,381 5,821 5,481 3,164 3,660 6,138 3,875 21 To nonbank brokers and dealers in securities ........................... 1,338 1,402 1,231 1,201 1,193 1,984 1,514 1,322 1,093 22 To others ................................................................................................ 1,375 993 421 503 877 928 1,078 699 311 23 Other loans, gross .................................................................................... 87,634 88,291 88,727 90,712 89,176 90,315 89,105 89,765 88,799 24 Commercial and industrial ................................................................ 46,996 47,779 48,371 48,239 47,306 47,303 47,552 47,660 46,885 25 Bankers’ acceptances and commercial paper ........................ 1,520 1,759 2,016 1,814 1,626 1,622 1,459 1,336 1,112 26 All other ............................................................................................. 45,476 46,020 46,355 46,424 45,680 45,680 46,093 46,324 45,772 27 U.S. addressees ............................................................................ 43,260 43,830 44,195 44,246 43,516 43,424 43,861 44,121 43,564 28 Non-U.S. addressees ................................................................. 2,216 2,190 2,160 2,179 2,164 2,256 2,231 2,203 2,208 29 Real estate ............................................................................................. 12,450 12,380 12,345 12,452 12,515 12,526 12,691 12,751 12,793 30 To individuals for personal expenditures ................................... 8,565 8.577 8,575 8,617 8,644 8,658 8,601 8,651 8,702 To financial institutions 31 Commercial banks in the United States ................................ 974 1,184 950 1,019 1,203 1,142 1,317 1,604 1,467 32 Banks in foreign countries ........................................................... 2,820 2,842 3,241 3,317 3,131 3,220 3,199 3,181 3,066 33 Sales finance, personal finance companies, etc..................... 3,411 3,426 3.458 3,925 3,980 4,445 3,804 3,462 3,927 34 Other financial institutions .......................................................... 5,026 4,886 4,900 5,038 5,011 5,114 5,009 4,939 5,055 35 To nonbank brokers and dealers in securities ........................... 3,451 3,226 3,128 3,978 3,658 3,675 3,211 3,348 2,948 36 To others for purchasing and carrying securities4 ................... 440 449 455 474 471 472 469 461 444 37 To finance agricultural production ............................................... 268 280 291 307 312 307 329 320 323 38 All other .................................................................................................. 3,231 3,261 3.014 3,346 2,946 3,453 2,921 3,386 3,189 39 Less: Unearned income ........................................................................ 1,007 1,000 1,011 1,027 1,020 1,000 1,009 1,022 1,036 40 Loan loss reserve ......................................................................... 1,616 1,641 1,646 1,656 1,657 1,681 1,688 1,674 1,653 41 Other loans, net ....................................................................................... 85,012 85,650 86,070 88,029 86,500 87,634 86,408 87,069 86,110 42 Lease financing receivables ................................................................... 1,555 1,564 1,562 1,577 1.580 1,580 1,593 1,589 1,609 43 All other assets5 ....................................................................................... 29,629 30,024 30,116 30,113 29,494 31,794 31,308 29,596 29,034 44 Total assets .................................................................................................. 180,157 180,952 190,600 188,005 180,590 186,111 181,868 184,049 180,774 Deposits 45 Demand deposits ...................................................................................... 63,045 63,238 71,828 66,204 61,063 64,833 61,837 66,934 61,404 46 Mutual savings banks ........................................................................ 280 312 337 314 249 299 279 310 255 47 Individuals, partnerships, and corporations ............................... 31,491 31,499 34,538 33,686 29,544 30,973 31,513 31,407 30,056 48 States and political subdivisions ..................................................... 494 545 462 530 510 371 420 481 378 49 U.S. government .................................................................................. 90 155 464 189 416 818 423 838 416 50 Commercial banks in the United States ..................................... 18,512 18.520 24,794 19,883 19,236 20,043 17,746 21,826 19,503 51 Banks in foreign countries .............................................................. 6,389 6,129 6.241 6,143 6,268 7,087 7,172 7,275 6,306 52 Foreign governments and official institutions ........................... 1,414 1,144 1,122 1,066 1,004 1,200 742 922 1,193 53 Certified and officers’ checks .......................................................... 4,374 4,934 3,871 4,394 3,836 4,042 3,542 3,876 3,296 54 Time and savings deposits .................................................................... 45,280 45,382 45.490 45,289 45,466 46.304 46,160 46,450 46,782 55 Savings ..................................................................................................... 9,380 9,448 9.410 9,389 9,301 9.348 9,265 9,201 9,272 56 Individuals and nonprofit organizations .................................. 8,902 8,971 8.930 8,927 8,843 8,896 8,834 8,781 8,861 57 Partnerships and corporations operated for profit ............. 324 326 324 324 319 319 308 297 293 58 Domestic governmental units ..................................................... 141 140 148 129 133 126 117 119 113 59 All other ............................................................................................. 13 12 9 9 6 7 6 4 5 60 Time ......................................................................................................... 35,899 35,934 36.080 35,900 36,164 36,956 36,895 37,249 37,510 61 Individuals, partnerships, and corporations ........................... 30,104 30,035 30,125 29,939 30,265 30,942 30,958 31,387 31,486 62 States and political subdivisions ................................................. 1,536 1,588 1.636 1,665 1.682 1,698 1,669 1,663 1,663 63 U.S. government ............................................................................. 58 57 58 60 60 62 58 61 64 64 Commercial banks in the United States ................................. 1,407 1,434 1,425 1,433 1,440 1,438 1,491 1,523 1,597 65 Foreign governments, official institutions, and banks ....... 2,794 2,820 2,836 2,802 2,718 2,816 2,720 2,615 2,700 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks .................................. 570 1,201 90 200 400 500 67 Treasury tax-and-loan notes ............................................................. 2,216 1,293 1.020 1,294 1,153 273 1 272 1,316 68 All other liabilities for borrowed money6 .................................. 32,321 33,905 34,782 36,807 33,402 36,180 35,656 31,801 32,265 69 Other liabilities and subordinated note and debentures ............ 23,123 22,932 22.760 24,279 24,153 24,170 23,729 23,949 24,279 70 Total liabilities .......................................................................................... 165,984 166,750 176,451 173,873 166,439 171,850 167,584 169,808 166,546 71 Residual (total assets minus total liabilities)7 ............................... 14,172 14,202 14.149 14,132 14,152 14,261 14,284 14,240 14,228 1. Excludes trading account securities. 5. Includes trading account securities. 2. Not available due to confidentiality. 6. Includes federal funds purchased and securities sold under agreements to 3. Includes securities purchased under agreements to resell. repurchase. 4. Other than financial institutions and brokers and dealers. 7. This is not a measure of equity capital for use in capital adequacy 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 1980 Category Jan. 30 Feb. 6 Feb. 13 Feb. 20 Feb. 27 Mar. 5p Mar. 12^ Mar. 19p Mar. 26p Banks with Assets of $750 Million or More 1 Total loans fgross^ and investments adjusted1 ............................. 505,614 507,023 505,921 509,228 508,114 513,942 511,631 509,724 506,776 2 Total loans (gross) adjusted1 ............................................................... 397,231 398,435 397,790 401,013 399,761 403,785 401,807 402,179 398,991 3 Demand deposits adjusted2 .................................................................. 108,107 106,568 105,967 104,959 102,894 104,290 106,914 102,576 100,464 4 Time deposits in accounts of $100,000 or more ............................ 130,097 130,290 130,408 129,913 131,275 132,389 132,586 133,564 133,634 5 Negotiable CDs .................................................................................... 92,639 92,743 92,542 92,001 93,075 94,048 93,913 94,599 94,530 6 Other time deposits ............................................................................. 37,458 37,546 37,867 37,912 38,200 38,340 38,673 38,965 39,104 7 Loans sold outright to affiliates3 ........................................................ 2,656 2,656 2,508 2,539 2,634 2,602 2,609 2,609 2,569 8 Commercial and industrial ................................................................ 1,750 1,805 1,651 1,668 1,706 1,673 1,678 1,687 1,652 9 Other ........................................................................................................ 906 851 857 871 928 929 931 922 917 Banks with Assets of $1 Billion or More 10 Total loans (gross) and investments adjusted1 .............................. 472,188 473,518 472,475 475,874 474,746 480,375 478,073 476,129 473,386 11 Total loans (gross) adjusted1 ................................................................ 372,044 373,167 372,595 375,976 375,734 378,538 376,629 376,955 373,979 12 Demand deposits adjusted2 .................................................................. 100,121 98,753 97,873 97,433 95,094 96,699 99,141 94,791 92,801 13 Time deposits in accounts of $100,000 or more ............................ 121,609 121,745 121,870 121,483 122,754 123,896 124,051 125,054 125,130 14 Negotiable CDs .................................................................................... 86,231 86,273 86,108 85,673 86,649 87,656 87,491 88,187 88,136 15 Other time deposits ............................................................................. 35,377 35,472 35,762 35,810 36,104 36,240 36,560 36,867 36,995 16 Loans sold outright to affiliates3 ........................................................ 2,606 2,607 2,464 2,495 2,589 2,557 2,560 2,564 2,524 17 Commercial and industrial ................................................................ 1,719 1,774 1,625 1,642 1,679 1,644 1,647 1,657 1,624 18 Other ........................................................................................................ 887 833 839 853 910 912 914 907 900 Banks in New York City 19 Total loans (gross} and investments adjusted1-4 ........................... 107,391 107,600 107,633 109,576 108,236 110,636 108,912 108,396 106,964 20 Total loans (gross) adjusted1 ................................................................ 89,373 89,502 89,430 91,397 90,044 92,084 90,380 90,183 88,735 21 Demand deposits adjusted2 ................................................................... 25,441 25,315 23,739 26,439 24.231 24,436 25,627 24,325 22,681 22 Time deposits in accounts of $100,000 or more ............................ 28,444 28,394 28,435 28,193 28,410 29,056 28,904 29,086 29,260 23 Negotiable CDs .................................................................................... 20,316 20,243 20,216 19,885 20,072 20,550 20,375 20,502 20,709 24 Other time deposits ............................................................................. 8,128 8,151 8,219 8,308 8,338 8,506 8,529 8,584 8,551 1. Exclusive of loans and federal funds transactions with domestic commercial 3. Loans sold are those sold outright to a bank’s own foreign branches, non­ banks. consolidated nonbank affiliates of the bank, the bank’s holding company (if not 2. All demand deposits except U.S. government and domestic banks less cash a bank) and nonconsolidated nonbank subsidiaries of the holding company. items in process of collection. 4. Excludes trading account securities. NOTES TO TABLE 1.311. 1. Commercial banks are those in the 50 states and the District of Columbia and averages of current and previous month-end data for foreign-related institu­ with national or state charters plus U.S. branches, agencies, and New York in­ tions. vestment company subsidiaries of foreign banks and Edge Act corporations. 4. Loans initially booked by the bank and later sold to affiliates that are still 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from held by affiliates. Averages of Wednesday data. nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. 5. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million due to Includes averages of Wednesday data for domestic chartered banks and averages corrections of two New York City banks. of current and previous month-end data for foreign-related institutions. 6. Includes averages of daily figures for member banks and quarterly call report 3. Other borrowings are borrowings on any instrument, such as a promissory figures for nonmember banks. note or due bill, given for the purpose of borrowing money for the banking business. 7. Includes averages of current and previous month-end data. This includes borrowings from Federal Reserve Banks and from foreign banks, 8. Based on daily average data reported by 46 large banks. term federal funds, overdrawn due from bank balances, loan RPs, and partici­ 9. Includes U.S. Treasury demand deposits and Treasury tax and loan notes at pations in pooled loans. Includes averages of daily figures for member banks commercial banks. Averages of daily data. 10. Averages of Wednesday figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Financial Statistics □ April 1980 1.31 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial Loans Millions of Dollars Outstanding Net change during Adjust­ Industry classification 1979 1980 1979 1980 ment bank Nov. 28 Dec. 26 Jan. 30r Feb. 27' Mar. 26 Q4 Ql Jan. Feb/ Mar. 1 Durable goods manufacturing ................ 22,856 23,593 23,735 24,226 24,965 1 1,326 96 492 739 46 2 Nondurable goods manufacturing .......... 18,379 19,205 19,116 19,218 19,752 298 508 -128 102 534 39 3 Food, liquor, and tobacco ................... 4,968 5,220 4,941 4,885 4,924 314 -301 -284 -56 40 6 4 Textiles, apparel, and leather ............. 4,608 4,342 4,138 4,331 4,480 -686 132 -211 194 149 6 5 Petroleum refining .................................. 1,873 2,677 3,175 3,027 3,056 705 377 496 -147 28 1 6 Chemicals and rubber ............................ 3,749 3,836 3,714 3,725 3,921 209 70 -136 10 196 14 7 Other nondurable goods ...................... 3,182 3,129 3,148 3,249 3,370 -243 229 7 102 121 12 8 Mining (including crude petroleum and natural gas) .................................. 11,502 11,998 12,323 12,458 12,586 317 574 312 134 128 14 9 Trade ............................................................... 25,077 24,885 24,438 25,182 25,373 230 366 -568 744 190 121 10 Commodity dealers ................................. 1,861 2,134 2,136 2,171 1,817 275 -322 -3 35 -354 6 11 Other wholesale ...................................... 11,902 11,992 11,705 11,936 12,097 52 71 -321 231 161 34 12 Retail ........................................................... 11,314 10,759 10,597 11,076 11,459 -96 618 -244 479 383 82 13 Transportation, communication, and other public utilities .................. 17,212 17,830 18,027 17,879 18,296 1,070 452 184 -148 417 14 14 Transportation .......................................... 7,075 7,133 7,173 7,233 7,512 300 372 33 60 279 7 15 Communication ........................................ 2,475 2,522 2,619 2,630 2,754 197 231 96 11 124 1 16 Other public utilities .............................. 7,662 8,176 8,236 8,016 8,030 574 -150 55 -219 14 5 17 Construction .................................................. 5,703 5,759 5,756 5,737 5,881 -133 99 -27 -18 144 23 18 Services ........................................................... 18,924 19,399 19,840 19,955 20,224 1,040 729 345 114 270 96 19 All other1 ........................................................ 14,505 14,873 15,202 15,200 15,105 348 -56 41 -2 -95 288 20 Total domestic loans .................................... 134,158 137,542 138,436 139,856 142,182 3,169 4,000 253 1,419 2,327 641 21 Memo: Term loans (original maturity more than 1 year) included in do­ mestic loans) ......................................... 69,731 72,439 74,843 74,620 75,873 4,100 3,401 2,371 -223 1,254 33 1. Includes commercial and industrial loans at a few banks with assets of $1 Note. New series. The 134 large weekly reporting commercial banks with dobillion or more that do not classify their loans. mestic assets of $1 billion or more as of December 31, 1977 are included in this series. The revised series is on a last-Wednesday-of-the-month basis. 1.311 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars December outstanding Outstanding in 1979 and 1980 Source 1976 1977 1978 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Total nondeposit funds 1 Seasonally adjusted2 ........................................................................... 54.7 61.8 85.4 118.8 129.7 131.0 129.8 125.6 120.0' 123.1' 130.7 2 Not seasonally adjusted .................................................................... 53.3 60.4 84.4 121.5 131.3 131.2 130.5 128.4 118.5 121.7' 127.4 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted3 .................................... ..................................... 47.1 58.4 74.8 86.6 92.9 91.3 91.9 85.9 88.0' 92.0 97.2 4 Not seasonally adjusted .................................................................... 45.8 57.0 73.8 89.3 94.5 91.5 92.6 88.6 86.5 90.6 93.9 5 Net Eurodollar borrowings, not seasonally adjusted .................. 3.7 -1.3 6.8 28.4 33.1 35.9 34.3 36.2 29.2 28.5' 30.9 6 Loans sold to affiliates, not seasonally adjusted4 5 ...................... 3.8 4.8 3.8 3.7 3.7 3.7 3.6 3.6 2.8 2.7 2.6 Memo: 7 Domestic chartered banks net positions with own foreign branches, not seasonally adjusted6 ........................................... -6.0 -12.5 -10.2 5.6 8.2 10.5 9.1 11.4 6.4 5.9 6.5 8 Gross due from balances ................................................................... 12.8 21.1 24.9 20.3 19.5 21.7 22.1 21.7 22.9 23.0 23.4 9 Gross due to balances ......................................................................... 6.8 8.6 14.7 26.0 27.7 32.2 31.2 33.0 29.3 28.9 29.8 10 Foreign-related institutions net positions with directly related institutions, not seasonally adjusted7 ...................................... 9.7 11.1 17.0 22.8 24.9 25.4 25.3 24.8 22.8 22.5 24.4 11 Gross due from balances ................................................................... 8.3 10.3 14.2 17.6 16.2 18.1 20.5 21.9 24.2 26.1 27.1 12 Gross due to balances......................................................................... 18.1 21.4 31.2 40.4 41.0 43.5 45.7 46.8 47.0 48.6 51.5 13 Security RP borrowings, seasonally adjusted8 ............................... 27.9 36.3 43.8 45.1 43.0 45.0 46.9 41.8 46.7 48.6' 47.2 14 Not seasonally adjusted .................................................................... 27.0 35.1 42.4 44.7 44.7 46.8 46.4 43.9 45.2 45.3' 45.5 15 U.S. Treasury demand balances, seasonally adjusted9............... 3.9 4.4 8.6 15.3 12.4 11.1 12.9 5.7 7.9 12.5 11.0 16 Not seasonally adjusted .................................................................... 4.4 5.1 10.2 13.2 9.8 12.4 11.7 5.5 9.5 12.4 11.4 17 Time deposits, $100,000 or more, seasonally adjusted10.......... 137.7 162.0 213.0 213.0 216.4 223.2 228.4 231.3 229.8' 231.1' 237.0 18 Not seasonally adjusted .................................................................... 140.0 165.4 217.9 209.3 214.2 221.2 227.9 232.6 235.0 235.1' 238.1 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 Type of holder 1978 19792 1975 1976 1977 Dec. Dec. Dec. June Sept. Dec. Mar. June Sept. Dec. 1 All holders—Individuals, partnerships, and corporations ............................................................. 236.9 250.1 274.4 271.2 278.8 294.6 270.4 285.6 292.4 302.2 2 Financial business .......................................................... 20.1 22.3 25.0 25.7 25.9 27.8 24.4 25.4 26.7 27.1 3 Nonfinancial business .................................................. 125.1 130.2 142.9 137.7 142.5 152.7 135.9 145.1 148.8 157.7 4 Consumer .......................................................................... 78.0 82.6 91.0 92.9 95.0 97.4 93.9 98.6 99.2 99.2 5 Foreign .............................................................................. 2.4 2.7 2.5 2.4 2.5 2.7 2.7 2.8 2.8 3.1 < 6 Other ................................................................................. 11.3 12.4 12.9 12.4 13.1 14.1 13.5 13.7 14.9 15.1 Weekly reporting banks 1978 19793 1975 1976 1977 Dec. Dec. Dec. Oct. Nov. Dec. Mar. June Sept. Dec. 7 All holders—Individuals, partnerships, and corporations ............................................................. 124.4 128.5 139.1 141.3 142.7 147.0 121.9 128.8 132.7 139.3 8 Financial business .......................................................... 15.6 17.5 18.5 19.1 19.3 19.8 16.9 18.4 19.7 20.1 9 Nonfinancial business ................................................... 69.9 69.7 76.3 75.0 75.7 79.0 64.6 68.1 69.1 74.1 10 Consumer .......................................................................... 29.9 31.7 34.6 37.5 37.7 38.2 31.1 33.0 33.7 34.3 11 Foreign ............................................................................... 2.3 2.6 2.4 2.5 2.5 2.5 2.6 2.7 2.8 3.0 12 Other .................................................................................. 6.6 7.1 7.4 7.2 7.5 7.5 6.7 6.6 7.4 7.8 1. Figures include cash items in process of collection. Estimates of gross deposits 3. After the end of 1978 the large weekly reporting bank panel was changed to are based on reports supplied by a sample of commercial banks. Types of depositors 170 large commercial banks, each of which had total assets in domestic offices in each category are described in the June 1971 Bulletin, p. 466. exceeding $750 million as of Dec. 31, 1977. See “Announcements,” p. 408 in the 2. Beginning with the March 1979 survey, the demand deposit ownership survey May 1978 Bulletin. Beginning in March 1979, demand deposit ownership esti­ sample was reduced to 232 banks from 349 banks, and the estimation procedure mates for these large banks are constructed quarterly on the basis of 97 sample was modified slightly. To aid in comparing estimates based on the old and new banks and are not comparable with earlier data. The following estimates in billions reporting sample, the following estimates in billions of dollars for December 1978 of dollars for December 1978 have been constructed for the new large-bank panel; have been constructed using the new smaller sample; financial business, 27.0; financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5; nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other, 15.1 other, 6.8. 1.33 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1979 1980 Instrument 1976 1977 1978 Dec. Dec. Dec. Aug. Sept. Oct.1 Nov. Dec. Jan. Feb. Commercial paper (seasonally adjusted) 1 All issuers ............................................................................. 53,010 65.036 83,420 104,424 107,249 107,116 109,395 112,803 116,718 116,446 Financial companies2 Dealer-Placed paper3 7,263 8,888 12,300 17,330 18,209 16,133 16,765 17,579 17,768 17,308 3 Bank-related ..................................................................... 1,900 2,132 3,521 4,062 4,485 3,052 2,958 2,784 3,034 3,010 Directly placed paper4 4 Total ................................................................................... 32,622 40,612 51,755 60,955 61,505 63,338 64,640 64,931 66,342 65,368 5 Bank-related .................................................................... 5,959 7,102 12,314 15,817 15,930 18,024 18,339 17,598 19,221 19,922 6 Nonfinancial companies5 ................................................. 13,125 15,536 19,365 26,139 27,535 27,645 27,990 30,293 32,608 33,770 Bankers dollar acceptances (not seasonally adjusted) 7 Total ........................................................................................ 22,523 25,450 33,700 42,354 42,147 43,486 43,599 45,321 47,780 50,269 Holder 8 Accepting banks .................................................................. 10,442 10,434 8,579 7,994 8,119 7,785 8,297 9,865 8,578 9,343 9 Own bills .......................................................................... 8,769 8,915 7,653 7,138 7,288 7,121 7,514 8,327 7,692 8,565 10 Bills bought ...................................................................... 1,673 1,519 927 856 831 664 782 1,538 886 778 Federal Reserve Banks 11 Own account .................................................................... 991 954 1 475 1,053 317 269 704 0 205 12 Foreign correspondents ................................................ 375 362 664 957 1,470 1,498 1,465 1,382 1,431 1,417 13 Others ..................................................................................... 10,715 13,700 24,456 32,928 31,505 33,886 33,569 33,370r 37,771 39,304 Basis 14 Imports into United States ............................................. 4,992 6,378 8,574 9,847 9,724 10,129 10,354 10,270 11,217 11,393 15 Exports from United States ........................................... 4,818 5,863 7,586 9,578 9,354 9,519 9,271 9,640 10,248 11,102 16 All other ................................................................................ 12,713 13,209 17,540 22,929 23,069 23,838 23,974 25,411 26,315 27,774 1. A change in reporting instructions results in offsetting shifts in the dealer- 3. Includes all financial company paper sold by dealers in the open market. placed and directly placed financial company paper in October. 4. As reported by financial companies that place their paper directly with inves­ 2. Institutions engaged primarily in activities such as, but not limited to, com­ tors. mercial, savings, and mortgage banking; sales, personal and mortgage financing; 5. Includes public utilities and firms engaged primarily in activities, such as factoring, finance leasing, and other business lending; insurance underwriting; and communications, construction, manufacturing, mining, wholesale and retail trade, other investment activities. transportation and reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Financial Statistics □ April 1980 1.34 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Effective date Rate Effective Date Rate Month Average Month Average rate rate 1979—Oct. 9 ..................... 14V2 1980—Feb. 19 ................... 153/4 1979—Jan............................... 11.75 1979—Sept ........................... 12.90 23 ..................... 15 22 ................... 161/4-16 Vi Feb............................... 11.75 Oct............................... 14.39 Nov. 1 ................... 15 V4 29 ................... 163/4 Mar.............................. 11.75 Nov.............................. 15.55 9 ................... 15fc Mar. 4 ................... 17 W Apr.............................. 11.75 Dec............................... 15.30 16 ................... 153/4 7 ................... 173/4 May .......................... 11.75 1980—Jan................................ 15.25 30 ................... 1516 14 ................... mvz June .......................... 11.65 Feb............................... 15.63 Dec. 7 ................... 15 V4 19 ................... 19 July ............................ 11.54 Mar.............................. 18.31 28 ................... l9Vi Aug.............................. 11.91 1.35 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 4-9, 1980 Size of loan (in thousands of dollars) All Item sizes 1,000 1-24 25^9 50-99 100-499 50-999 and over Short-Term Commercial and Industrial Loans 1 Amount of loans (thousands of dollars) ........................ 9,898,106 743,681 498,107 504,075 1,742,217 656,163 5,753,864 2 Number of loans ..................................................................... 135,149 99,439 15,146 8,001 10,013 1,028 1,523 3 Weighted average maturity (months) .............................. 2.5 3.5 3.3 3.3 3.3 3.0 1.9 4 Weighted average interest rate (percent per annum) 15.68 14.95 15.52 15.88 16.23 16.35 15.53 5 Interquartile range1 ........................................................... 14.88-16.48 13.57-17.11 13.80-17.27 14.99-17.52 15.40-17.27 15.73-17.00 14.84-16.21 Percentage of amount of loans 6 With floating rate ................................................................... 50.6 20.1 39.4 46.3 58.0 61.4 52.4 7 Made under commitment .................................................... 48.2 21.2 28.7 39.6 50.0 60.1 52.2 8 With no stated maturity ....................................................... 25.1 11.4 18.2 24.4 21.0 34.7 27.7 Long-Term Commercial and Industrial Loans 9 Amount of loans (thousands of dollars) ........................ 1,865,265 284,258 258,998 119,342 1,202,667 10 Number of loans ...................................................................... 21,597 19,890 1,267 183 256 11 Weighted average maturity (months) .............................. 43.1 31.8 42.8 51.2 45.1 12 Weighted average interest rate (percent per annum) 15.45 15.31 15.39 15.68 15.47 13 Interquartile range1 ........................................................... 15.25-16.25 14.00-16.67 15.25-16.70 15.25-16.90 15.25-15.86 Percentage of amount of loans 14 With floating rate ................................................................... 65.1 20.2 44.8 76.2 79.0 15 Made under commitment .................................................... 71.8 29.9 73.6 75.2 81.0 Construction and Land Development Loans 16 Amount of loans (thousands of dollars) ........................ 868,797 95,361 101,947 186,165 287,178 198,145 17 Number of loans ...................................................................... 19,027 11,323 2,932 2,768 1,853 151 18 Weighted average maturity (months) .............................. 12.1 9.2 4.4 2.7 21.0 14.5 19 Weighted average interest rate (percent per annum) 15.77 15.51 14.44 14.94 16.83 15.82 20 Interquartile range1 ........................................................... 13.85-17.99 13.65-17.09 12.55-16.09 13.80-16.10 16.25-18.11 13.50-18.01 Percentage of amount of loans 21 With floating rate ................................................................... 38.9 28.9 17.6 15.8 34.5 82.7 22 Secured by real estate ........................................................... 95.4 92.4 99.3 99.0 94.8 92.4 23 Made under commitment .................................................... 61.0 69.8 78.4 69.1 41.3 68.6 24 With no stated maturity ....................................................... 8.9 7.7 4.0 4.6 10.5 13.5 Type of construction 25 1- to 4-family ........................................................................... 55.5 84.5 89.1 74.4 34.9 36.2 26 Multifamily ............................................................................. 5.3 3.1 2.6 3.8 8.9 3.3 27 Nonresidential .......................................................................... 39.3 12.4 8.4 21.8 56.2 60.0 All 250 sizes 1-9 10-24 25-49 50-99 100-249 and over Loans to Farmers 28 Amount of loans (thousands of dollars) ........................ 1,122,729 143,468 173,000 176,294 214,386 196,410 219,171 29 Number of loans ................................................................. 61,555 39,318 11,815 5,083 3,384 1,496 459 30 Weighted average maturity (months) .............................. 7.0 8.0 7.3 6.2 6.8 8.2 5.8 31 Weighted average interest rate (percent per annum) 14.06 13.46 13.56 13.72 13.69 14.78 14.82 32 Interquartile range1 ........................................................... 13.28-15.03 12.69-14.49 12.36-14.75 13.24-14.28 13.42-14.20 13.65-15.75 13.90-16.36 By purpose of loan 33 Feeder livestock ..................................................................... 14.39 13.31 12.95 14.07 14.13 14 61 15.35 34 Other livestock ......................................................................... 13.32 14.26 14.31 13.63 11.88 14.67 16.15 35 Other current operating expenses .................................... 14.10 13.52 13.81 14.07 14.35 14.73 13.76 36 Farm machinery and equipment ....................................... 12.78 13.01 13.02 11.17 12.96 14.34 12.00 37 Other .......................................................................................... 14.56 13.32 13.50 14.03 14.14 16.39 15.86 1. Interest rate range that covers the middle 50 percent of the total dollar amount Note. For more detail, see the Board’s E.2(416) statistical release, of loans made. 2. Fewer than 10 sample loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets A ll 1.36 INTEREST RATES Money and Capital Markets Averages, percent per annum 1979 1980 1980, week ending Instrument 1977 1978 1979 Dec. Jan. Feb. Mar. Mar. 1 Mar. 8 Mar. 15 Mar. 22 Mar. 29 Money market rates 1 Federal funds1 .................................................... 7.94 13.78 14.13 17.19 17.78 Commercial paper2-3 2 1-month ........................................................... 5.42 7.76 10.86 13.35 13.07 13.62 16.55 14.46 15.92 16.75 16.84 16.61 3 3-month ........................................................... 5.54 7.94 10.97 13.24 13.04 13.78 16.81 14.77 16.22 16.95 17.04 16.95 4 6-month ........................................................... 5.60 7.99 10.91 12.80 12.66 13.60 16.50 14.68 16.02 16.50 16.70 16.70 Finance paper, directly placed2-3 5 1-month ........................................................... 5.38 7.73 10.78 13.27 13.01 13.58 16.30 14.45 15.71 16.53 16.48 16.34 6 3-month ........................................................... 5.49 7.80 10.47 11.74 11.96 13.05 15.36 13.93 14.96 15.52 15.50 15.43 7 6-month ........................................................... 5.50 7.78 10.25 11.68 11.79 12.39 14.70 13.27 14.31 14.72 14.69 14.98 8 Prime bankers acceptances, 90-day3-4 __ 5.59 8.11 11.04 13.31 13.15 14.01 17.10 15.10 16.59 17.24 17.22 17.29 Certificates of deposit, secondary market5 9 1-month ........................................................... 5.48 7.88 11.03 13.36 13.26 13.93 16.81 14.88 16.15 17.21 16.97 16.84 10 3-month ........................................................... 5.64 8.22 11.22 13.43 13.39 14.30 17.57 15.45 16.87 17.71 17.82 17.80 11 6-month ........................................................... 5.92 8.61 11.44 13.42 13.48 14.58 17.74 15.74 17.11 17.77 17.90 18.07 12 Eurodollar deposits, 3-month6 .................... 6.05 8.74 11.96 14.51 14.33 15.33 18.72 16.46 17.16 18.58 18.98 18.99 U.S. Treasury bills3 7 Secondary market 13 3-month ....................................................... 5.27 7.19 10.07 12.04 12.00 12.86 15.20 13.78 15.37 15.32 14.76 15.55 14 6-month ....................................................... 5.53 7.58 10.06 11.84 11.84 12.86 15.03 13.82 14.90 15.02 14.83 15.42 15 1-year ........................................................... 5.71 7.74 9.75 10.92 10.96 12.46 14.03 13.53 13.94 13.92 13.89 14.39 Auction average8 16 3-month ....................................................... 5.265 7.221 10.041 12.071 12.036 12.814 15.526 13.700 15.136 15.381 15.053 16.532 17 6-month ....................................................... 5.510 7.572 10.017 11.847 11.851 12.721 15.100 13.629 14.792 14.956 14.950 15.700 Capital market rates U.S. Treasury Notes and Bonds Constant maturities9 18 1-year ............................................................... 6.09 8.34 10.67 11.98 12.06 13.92 15.82 15.24 15.77 15.68 15.58 16.25 19 2-year ............................................................... 6.45 8.34 10.12 11.39 11.50 13.42 14.88 14.70 15.03 14.67 14.72 15.16 20 2^-year10 ....................................................... 10.90 11.15 14.00 14.65 21 3-year .............................................................. 6.69 8.29 9.71 10.71 10.88 12.84 14.05 14.07' 14.27 13.83 13.86 14.31 22 4-year10 ........................................................... 23 5-year .............................................................. 6.99 8.32 9.52 10.42 10.74 12.60 13.47 13.76 13.65 13.22 13.21 13.83 24 7-year .............................................................. 7.23 8.36 9.48 10.42 10.77 12.53 13.00 13.50 13.23 12.76 12.76 13.28 25 10-year ........................................................... 7.42 8.41 9.44 10.39 10.80 12.41 12.75 13.20 12.94 12.54 12.54 13.00 26 20-year ............................................................ 7.67 8.48 9.33 10.18 10.65 12.21 12.49 12.59 12.61 12.36 12.29 12.71 27 30-year ........................................................... 8.49 9.29 10.12 10.60 12.13 12.34 12.57 12.44 12.23 12.13 12.55 Composite11 28 3 to 5 years ................................................... 6.85 8.30 9.58 10.45 10.76 12.52 13.41 13.57 13.65 13.21 13.16 13.68 29 Over 10 years (long-term) ...................... 7.06 7.89 8.74 9.59 10.03 11.55 11.87 12.10 12.01 11.73 11.67 12.06 State and Local Notes and Bonds Moody's series12 30 Aaa ....................................................................... 5.20 5.52 5.92 6.50 6.58 7.28 8.16 8.00 8.00 8.15 8.25 8.25 31 Baa ....................................................................... 6.12 6.27 6.73 7.42 7.60 8.12 10.30 9.00 10.40 10.40 10.40 10.00 32 Bond Buyer series13 ....................................... 5.68 6.03 6.52 7.22 7.35 8.16 9.17 8.72 8.94 9.08 9.20 9.44 Corporate Bonds 33 Seasoned issues, all industries14 ................ 8.43 9.07 10.12 11.35 11.74 12.92 13.73 13.54 13.64 13.72 13.68 13.87 By rating groups 34 Aaa ................................................................... 8.02 8.73 9.63 10.74 11.09 12.38 12.96 12.88 13.00 13.00 12.83 13.00 35 Aa .................................................................... 8.24 8.92 9.94 11.15 11.56 12.73 13.51 13.45 13.41 13.51 13.43 13.65 36 A ....................................................................... 8.49 9.12 10.20 11.46 11.88 12.99 13.97 13.66 13.89 14.01 14.01 14.17 37 Baa ................................................................... 8.97 9.45 10.69 12.06 12.42 13.57 14.45 14.16 14.27 14.35 14.45 14.67 Aaa utility bonds15 38 New issue ....................................................... 8.19 8.96 10.03 11.25 11.73 13.57 14.00 14.11 13.98 13.95 13.85 14.22 39 Recently offered issues ............................ 8.19 8.97 10.02 11.33 11.77 13.35 13.90 13.83 13.94 13.72 13.80 14.12 Memo: Dividend/price ratio16 40 Preferred stocks .......................................... 7.60 8.25 9.07 10.06 10.14 10.55 11.26 10.83 11.11 11.34 11.43 11.61 41 Common stocks ........................................... 4.56 5.28 5.46 5.53 5.40 5.24 5.77 5.41 5.49 5.72 5.94 6.31 1. Weekly figures are 7-day averages of daily effective rates for the week ending 10. Each figure is an average of only five business days near the end of the Wednesday; the daily effective rate is an average of the rates on a given day month. The rate for each month is used to determine the maximum interest rate weighted by the volume of transactions at these rates. payable in the following month on small saver certificates. (See table 1.16). 2. Beginning November 1977, unweighted average of offering rates quoted by 11. Unweighted averages for all outstanding notes and bonds in maturity ranges at least five dealers (in the case of commercial paper), or finance companies (in shown, based on daily closing bid prices. “Long-term” includes all bonds neither the case of finance paper). Previously, most representative rate quoted by those due nor callable in less than 10 years, including several very low yielding “flower” dealers and finance companies. Before Nov. 1979, maturities for data shown are bonds. 30-59 days, 90-119 days, and 120-179 days for commercial paper; and 30-59 days, 12. General obligations only, based on figures for Thursday, from Moody’s 90-119 days, and 150-179 days for finance paper. 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 offered for 14. Averages of daily figures from Moody’s Investors Service. domestic issues. 15. Compilation of the Board of Governors of the Federal Reserve System. 5. Five-day average of rates quoted by five dealers (3-month series was previously Issues included are long-term (20 years or more). New-issue yields are based a 7-day average). on quotations on date of offering; those on recently offered issues (included only 6. Averages of daily quotations for the week ending Wednesday. for first 4 weeks after termination of underwriter price restrictions), on Friday 7. Except for auction averages, yields are computed from daily closing bid prices. close-of-business quotations. 8. Rates are recorded in the week in which bills are issued. 16. Standard and Poor’s corporate series. Preferred stock ratio based on a sample 9. Yield on the more actively traded issues adjusted to constant maturities by of ten issues: four public utilities, four industrials, one financial, and one trans­ the U.S. Treasury, based on daily closing bid prices. portation. Common stock ratios on the 500 stocks in the price index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Financial Statistics □ April 1980 1.37 STOCK MARKET Selected Statistics 1979 1980 Indicator 1977 1978 1979 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 53.67 53.76 55.67 61.89 59.27 59.02 61.75 63.74 66.05 59.52 2 Industrial .......................................................................... 57.84 58.30 61.82 69.17 66.68 66.45 69.82 72.67 76.42 68.71 3 Transportation ................................................................ 41.07 43.25 45.20 52.21 48.07 47.61 50.59 52.61 57.92 51.77 4 Utility ................................................................................. 40.91 39.23 36.46 38.39 36.58 36.55 37.29 37.08 36.22 33.38 5 Finance ............................................................................... 55.23 56.74 58.65 67.21 61.64 60.64 63.21 64.22 61.84 54.71 6 Standard & Poor’s Corporation (1941-43 = 10)1 98.18 96.11 98.34 108.60 104.47 103.66 107.78 110.87 115.34 104.69 7 American Stock Exchange (Aug. 31, 1973 = 100) 116.18 144.56 186.56 223.00 212.33 216.58 238.83 259.54 288.99 259.79 Volume of trading (thousands of shares) 8 New York Stock Exchange ........................................ 20,936 28,591 32,233 37,576 37,301 31,126 35,510 52,647 47,827 41,736 9 American Stock Exchange .......................................... 2,514 3,622 4,182 5,405 5,446 3,938 5,389 9,363 6,903 5,947 Customer 1financing (end-of-period balances,in millionsof dollars) 10 Regulated margin credit at brokers/dealers2 ......... 9,993 11,035 11,615 12,178 11,483 11,083 11,619' 11,987r 12,638 4 11 Margin stock3 ................................................................... 9,740 10,830 11,450 12,000 11,310 10,920 11,450 11,820 12,460 I 1 12 Convertible bonds .......................................................... 250 205 164 177 173 161 167r 165r 175 13 Subscription issues ........................................................ 3 1 1 1 * 2 2r 2r 3 n.a. I Free credit balances at brokers4 14 Margin-account .............................................................. 640 835 1,050 960 950 955 1,105 1,180 1,320 T 15 Cash-account ................................................................... 2,060 2,510 4,060 3,325 3,490 3,435 4,060 4,680 4,755 M;argin-account debt at b•rokers (percentage distributions, <snd of perk)d) 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 ........................................................................... 18.0 33.0 16.0 16.0 27.0 17.0 16.0 13.0 16.0 18 40-49 ................................................................................... 36.0 28.0 28.0 26.0 31.0 31.0 31.0 29.0 29.0 19 50-59 ................................................................................... 23.0 18.0 24.0 30.0 20.0 25.0 24.0 25.0 25.0 20 60-69 ................................................................................... 11.0 10.0 14.0 14.0 10.0 13.0 14.0 16.0 14.0 21 70-79 ................................................................................... 6.0 6.0 8.0 8.0 6.0 7.0 8.0 9.0 9.0 22 80 or more ...................................................................... 5.0 5.0 7.0 6.0 6.0 7.0 7.0 8.0 7.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (million dollars)6 ....... 9,910 14,800 14,995 16,290 16,550 Distribution by equity status (percent) 24 Net credit status ..................................... 43.4 41.3 48.5 45.3 44.5 Debt status, equity of 25 60 percent or more ........................... 44.9 45.1 43.6 46.4 45.5 45.0 43.6 47.7 n.a. 26 Less than 60 percent ........................ 11.7 13.6 7.9 8.3 10.0 8.5 7.9 7.3 n.a. 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 insurance 5. Each customer’s equity in his collateral (market value of collateral less net companies. With this change the index includes 400 industrial stocks (formerly debit balance) is expressed as a percentage of current collateral values. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 6. Balances that may be used by customers as the margin deposit required for financial. additional purchases. Balances may arise as transfers based on loan values of other 2. Margin credit includes all credit extended to purchase or carry stocks or collateral in the customer’s margin account or deposits of cash (usually sales pro­ related equity instruments and secured at least in part by stock. Credit extended ceeds) occur. is end-of-month data for member firms of the New York Stock Exchange. 7. Regulations G, T, and U of the Federal Reserve Board of Governors, pre­ In addition to assigning a current loan value to margin stock generally, Regu­ scribed in accordance with the Securities Exchange Act of 1934, limit the amount lations T and U permit special loan values for convertible bonds and stock acquired of credit to purchase and carry margin stocks that may be extended on securities through exercise of subscription rights. as collateral by prescribing a maximum loan value, which is a specified percentage 3. A distribution of this total by equity class is shown on lines 17-22. of the market value of the collateral at the time the credit is extended. Margin 4. Free credit balances are in accounts with no unfulfilled commitments to the requirements are the difference between the market value (100 percent) and the brokers and are subject to withdrawal by customers on demand. 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 1980 Account 1977 1978 Apr. May June July Aug. Sept. Oct. Nov. Dec.1 Jan. Feb.P Savings and loan associations 1 Assets ................................................. 459,241 523,542 543,320 549,031 555,409 561,037 566,493 570,479 576,251 578,922 579,307 582,252 585,579 2 Mortgages ........................................ 381,163 432,808 445,638 450,978 456,544 460,620 464,609 468,307 472,198 474,678 475,797 476,448 477,261 3 Cash and investment securities1 39,150 44,884 48,698 48,280 48,253 49,496 50,007 49,3013 49,220 48,180 46,541 48,473 50,099 4 Other ................................................. 38,928 45,850 48,984 49,773 50,612 50,721 51,877 52,871 54,833 56,064 56,969 57,331 58,219 5 Liabilities and net worth ............ 459,241 523,542 543,320 549,031 555,409 561,037 570,479 566,493 576,251 578,922 579,307 582,252 585,579 6 Savings capital ............................... 386,800 430,953 445,751 447,788 454,642 456,657 457,856 462,626 464,489 465,646 470,171 472,236 473,796 7 Borrowed money ......................... 27,840 42,907 43,710 44,324 46.993 48,437 50,437 52,738 54,268 54,433 55,375 55,233 55,274 8 FHLBB ........................................ 19,945 31,990 32,389 33,003 34,266 35,286 36,009 37,620 39,223 39,638 40,441 40,364 40,346 9 Other ............................................ 7,895 10,917 11,321 11,321 12,727 13,151 14,428 15,118 15,045 14,795 14,934 14,869 14,928 10 Loans in process ........................... 9,911 10,721 10,690 11,118 11,260 11,309 11,047 10,909 10,766 10,159 9,511 8,735 8,274 11 Other ................................................. 9,506 9,904 12,950 15,259 11,681 13,503 15,712 12,497 14,673 16,324 11,684 13,315 15,347 12 Net worth2 ...................................... 25,184 29,057 30,219 30,542 30,833 31,131 31,441 31,709 32,055 32,360 32,566 32,733 32,888 13 Memo: Mortgage loan com­ mitments outstanding3 ....... 19,875 18,911 22,915 23,560 22,770 22,360 22,282 22,397 20,930 18,029 16,007 15,559 16,740 Mutual savings banks4 14 Assets ................................................. 14,287 158,174 161,231 161,380 161,814 162,598 163,388 163,431 163,133 163,205 163,366 163,214 Loans 15 Mortgage ..................................... 88,195 95,157 95,900 96,239 96,743 97,238 97,637 97,973 98,304 98,610 98,924 98,949 16 Other ............................................ 6,210 7,195 9,290 9,444 9,577 10,282 10,430 9,982 9,510 9,449 9,259 9,771 Securities 17 U.S. government5 ..................... 5,895 4,959 8,193 8,148 8,029 7,992 7,921 7,891 7,750 7,754 7,630 7,366 18 State and local government .. 2,828 3,333 3,326 3,264 3,175 3,154 3,149 3,150 3,100 3,003 2,929 2,886 19 Corporate and other6 ............. 37,918 39,732 37,211 37,304 37,281 37,171 37,125 37,076 37,210 37,036 37,119 37,157 20 Cash .................................................. 2,401 3,665 3,072 2,785 2,764 2,,540 2,866 3,020 2,909 3,010 3,198 2,755 n.a. 21 Other assets .................................... 3,839 4,131 4,239 4,198 4,245 4,220 4,260 4,339 4,351 4,343 4,308 4,329 22 Liabilities ......................................... 147,287 158,174 161,231 161,380 161,814 162,598 163,388 163,431 163,133 163,205 163,366 163,214 23 Deposits ........................................... 134,017 142,701 145,096 145,056 146,057 145,757 145,713 146,252 145,096 144,828 145,855 144,902 24 Regular7 ...................................... 132,744 141,170 143,210 143,271 144,161 143,843 143,731 144,258 143,263 143,064 143,903 142,980 25 Ordinary savings .................. 78,005 71,816 67,758 67,577 68,104 67,537 66,733 65,676 62,672 61,156 61,078 59,191 26 Time and other ..................... 54,739 69,354 75,452 75,694 76,057 76,306 76,998 78,572 80,591 81,908 82,824 83,789 27 Other ............................................ 1,272 1,531 1,886 1,784 1,896 1,914 1,982 2,003 1,834 1,764 1,952 1,923 28 Other liabilities .............................. 3,292 4,565 5,050 5,172 4,545 5,578 6,350 5,790 6,600 6,872 5,989 6,773 29 General reserve accounts .......... 9,978 10,907 11,085 11,153 11,212 11,264 11,324 11,388 11,437 11,504 11,522 11,539 30 Memo: Mortgage loan com­ mitments outstanding8 ....... 4,066 4,400 4,449 4,352 4,469 4,214 4,071 4,123 3,749 3,619 3,182 2,919 Life insurance companies 31 Assets ................................................. 351,722 389,924 402,963 405,627 409,853 414,120 418,350 421,660 423,760 427,4% 431,453 Securities 32 Government ............................... 19,553 20,009 20,510 20,381 20,397 20,468 20,472 20,379 20,429 20,486 20,294 33 United States9 ...................... 5,315 4,822 5,272 5,149 5,178 5,228 5,229 5,067 5,075 5,122 4,984 34 State and local ...................... 6,051 6,402 6,268 6,272 6,,241 6,243 6,258 6,295 6,339 6,354 6,392 35 Foreign10 ................................ 8,187 8,785 8,970 8,960 8,978 8,997 8,985 9,017 9,015 9,010 8,918 n.a. n.a. 36 Business ...................................... 175,654 198,105 206,160 207,775 209,804 212,876 215,252 216,500 216,183 217,856 218,284 37 Bonds ...................................... 141,891 162,587 169,817 171,762 173,130 175,854 176,920 177,698 178,633 179,158 178,828 38 Stocks ...................................... 33,763 35,518 36,343 36,013 36,674 37,022 38,332 38,802 37,550 38,698 39,456 39 Mortgages ........................................ 96,848 106,167 109,198 110,023 111,123 112,120 113,102 114,368 115,991 117,253 118,784 40 Real estate ...................................... 11,060 11,764 12,086 12,101 12,199 12,351 12,738 12,740 12,816 12,906 13,047 41 Policy loans ..................................... 27,556 30,146 31,512 31,832 32,131 32,390 32,713 33,046 33,574 34,220 34,761 42 Other assets ................................... 21,051 23,733 23,497 23,515 24,199 23,915 24,073 24,627 24,767 24,775 26,283 Credit unions 43 Total assets/liabilities and capital ...................................... 53,755 62,348 63,030 64,158 65,435 68,840 65,547 66,280 65,063 65,419 65,854 64,506 64,856 44 Federal ........................................ 29,564 34,760 34,758 35,379 36,146 35,413 35,724 36,151 35,537 35,670 35,934 35,228 35,425' 45 State .............................................. 24,191 27,588 28,272 28,779 29,289 29,427 29,823 30,129 29,526 29,749 29,920 29,278 29,432 46 Loans outstanding ........................ 41,845 50,269 50,846 51,351 52,028 52,083 52,970 53,545 53,533 56,267 53,125 52,089 51,626 47 Federal ........................................ 22,634 27,687 27,869 28,103 28,487 28,379 28,848 29,129 29,020 30,613 28,698 28,053 27,783 48 State .............................................. 19,211 22,582 27,977 23,248 23,541 23,704 24,122 24,416 24,513 25,654 24,426 24,036 23,843 49 Savings .............................................. 46,516 53,517 54,199 55,107 56,437 56,393 56,583 57,255 55,739 55,797 56,232 55,447 55,790 50 Federal (shares) ........................ 25,576 29,802 29,796 30,222 31,048 30,732 30,761 31,097 30,366 30,399 35,530 30,040 32,256 51 State (shares and deposits) ... 20,940 23,715 24,403 24,885 25,839 25,661 25,822 26,158 25,373 25,398 25,702 25,407 25,534 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Financial Statistics □ April 1980 1.39 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Type of account or operation year year year 1978 1979 1979 1980 1977 1978 1979 H2 HI H2 Dec. Jan. Feb. U.S. budget 1 Receipts1 .............................................................. 357,762 401,997 465,940 206,275 246,574 233,952 42,617 43,429 37,862 2 Outlays1 ............................................................... 402,725 450,836 493,673 238,186 245,616 263,044 44,010 47,988 47,208 3 Surplus, or deficit(-) ..................................... -44,963 -48,839 -27,733 -31,912 958 -29,093 -1,393 -4,559 -9,346 4 Trust funds ..................................................... 9,497 12,693 18,335 11,754 4,041 9,679 565 -5,090 3,398 5 Federal funds2 ............................................... -54,460 -61,532 -46,069 -43,666 -4,999 -38,773 -1,959 531 -12,745 Off-budget entities surplus, or deficit (-) 6 Federal Financing Bank outlays .................. -8,415 -10,661 -13,261 -5,082 -7,712 -5,909 -735 -714 -819 7 Other3 .................................................................. -269 334 832 1,843 -447 805 131 103 -294 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-) ................................... -53,647 -59,166 -40,162 -35,151 -7,201 -34,197 -1,997 -5,170 -10,459 Source or financing 9 Borrowing from the public ...................... 53,516 59,106 33,641 30,314 6,039 31,320 11,207 -555 2,066 10 Cash and monetary assets (decrease, or increase (-))4 ...................................... -2,247 -3,023 -408 3,381 -8,878 3,059 -10,378 6,403 6,007 11 Other5 .............................................................. 2,378 3,083 6,929 1,456 10,040 -182 -1,168 -678 2,386 Memo: 12 Treasury operating balance (level, end of period) ........................................................ 19,104 22,444 24,176 16,291 17,485 15,924 15,924 16,602 10,688 13 Federal Reserve Banks .............................. 15,740 16,647 6,489 4,196 3,290 4,075 4,075 2,931 2,417 14 Tax and loan accounts ............................... 3,364 5,797 17,687 12,095 14,195 11,849 11,849 13,671 8,271 1. Effective June 1978, earned income credit payments in excess of an indi­ 5. Includes accrued interest payable to the public; deposit funds; miscellaneous vidual’s tax liability, formerly treated as income tax refunds, are classified as liability (including checks outstanding) and asset accounts; seignorage; increment outlays retroactive to January 1976. on gold; net gain/loss for U.S. currency valuation adjustment; net gain/loss for IMF 2. Half-year figures calculated as a residual (total surplus/deficit less trust fund valuation adjustment; and profit on the sale of gold. surplus/deficit). 3. Includes Pension Benefit Guaranty Corp.; Postal Service Fund; Rural Elec­ Source. “Monthly Treasury Statement of Receipts and Outlays of the U.S. trification and Telephone Revolving Fund; and Rural Telephone Bank. Government,” Treasury Bulletin, and the Budget of the United States Government, 4. Includes U.S. Treasury operating cash accounts; special drawing rights; gold Fiscal Year 1981. 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 “other 10. Issues of foreign governments and their subdivisions and bonds of the In­ assets.” ternational Bank for Reconstruction and Development. 2. Includes net undistributed income, which is accrued by most, but not all, associations. Note. Savings and loan associations: Estimates by the FHLBB for all associa­ 3. Excludes figures for loans in process, which are shown as a liability. tions in the United States. Data are based on monthly reports of federally insured 4. The NAMSB reports that, effective April 1979, balance sheet data are not associations and annual reports of other associations. Even when revised, data for strictly comparable with previous months. Beginning April 1979, data are reported current and preceding year are subject to further revision. on a net-of-valuation-reserves basis. Prior to that date, data were reported on a Mutual savings banks: Estimates of National Association of Mutual Savings gross-of-valuation-reserves basis. Banks for all savings banks in the United States. 5. Begining April 1979, includes obligations of U.S. government agencies. Prior Life insurance companies: Estimates of the American Council of Life Insurance to that date, this item was included in “Corporate and other.” for all life insurance companies in the United States. Annual figures are annual- 6. Includes securities of foreign governments and international organizations statement asset values, with bonds carried on an amortized basis and stocks at and, prior to April 1979, nonguaranteed issues of U.S. government agencies. year-end market value. Adjustments for interest due and accrued and for differ­ 7. Excludes checking, club, and school accounts. ences between market and book values are not made on each item separately but 8. Commitments outstanding (including loans in process) of banks in New York are included, in total, in “other assets.” State as reported to the Savings Banks Association of the state of New York. Credit unions: Estimates by the National Credit Union Administration for a 9. Direct and guaranteed obligations. Excludes federal agency issues not guar­ group of federal and state-chartered credit unions that account for about 30 percent anteed, which are shown in the table under “business” securities. of credit union assets. Figures are preliminary and revised annually to incorporate recent benchmark data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A31 1.40 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year Fiscal Fiscal Fiscal Source or type year year year 1978 1979 1979 1980 1977 1978 1979 H2 HI H2 Dec. Jan. Feb. Receipts 1 All sources1 ......................................................... 357,762 401,997 465,940 206,275 246,574 233,952 42,617 43,429 37,862 2 Individual income taxes, net ........................ 157,626 180,988 217,841 98,854 111,603 115,488 20,192 26,856 15,522 3 Withheld .......................................................... 144,820 165,215 195,295 90,148 98,683 105,764 19,402 17,821 19,466 4 Presidential Election Campaign Fund .. 37 39 36 3 32 3 0 0 7 5 Nonwithheld .................................................. 42,062 47,804 56,215 10,777 44,116 12,355 952 9,061 1,230 6 Refunds1 .......................................................... 29,293 32,070 33,705 2,075 31,228 2,634 163 26 5,181 Corporation income taxes 7 Gross receipts ............................................... 60,057 65,380 71,448 28,536 42,427 29,169 10,667 2,702 2,117 8 Refunds ........................................................... 5,164 5,428 5,771 2,757 2,889 3,306 460 465 697 9 Social insurance taxes and contributions, net ................................................................. 108,683 123,410 141,591 61,064 75,609 71,031 8,675 10,775 16,857 10 Payroll employment taxes and contributions2 ........................................ 88,196 99,626 115,041 51,052 59,298 60,562 7,963 9,085 14,447 11 Self-employment taxes and contributions3 ........................................ 4,014 4,267 5,034 369 4,616 417 0 441 377 12 Unemployment insurance ......................... 11,312 13,850 15,387 6,727 8,623 6,899 204 675 1,490 13 Other net receipts4 ...................................... 5,162 5,668 6,130 2,917 3,072 3,149 507 574 543 14 Excise taxes ........................................................ 17,548 18,376 18,745 9,879 8,984 9,675 1,658 1,448 1,378 15 Customs deposits .............................................. 5,150 6,573 7,439 3,748 3,682 3,741 595 611 519 16 Estate and gift taxes ........................................ 7,327 5,285 5,411 2,691 2,657 2,900 425 509 506 17 Miscellaneous receipts5 .................................. 6,536 7,413 9,237 4,260 4,501 5,254 866 992 1,661 Outlays 18 All types1 ............................................................ 402,725 450,836 493,673 238,186 245,616 263,044 44,010 47,988 47,208 19 National defense ............................................... 97,501 105,186 117,681 55,124 57,643 62,002 10,566 11,195 11,174 20 International affairs ......................................... 4,813 5,922 6,091 2,060 3,538 4,617 899 859 885 21 General science, space, and technology .. 4,677 4„742 5,041 2,383 2,461 3,299 432 528 545 22 Energy .................................................................. 4,172 5,861 6,856 4,279 4,417 3,281 625 439 471 23 Natural resources and environment .......... 10,000 10,925 12,091 6,020 5,672 7,350 1,597 1,167 961 24 Agriculture .......................................................... 5,532 7,731 6,238 4,967 3,020 1,709 1,150 1,432 163 25 Commerce and housing credit ..................... -44 3,324 2,565 3,292 60 3 ,,002 516 676 -122 26 Transportation .................................................. 14,636 15,445 17,459 8,740 7,688 10,298 1,862 1,914 1,278 27 Community and regional development .... 6,348 11,039 9,482 5,844 4,499 4,855 614 1,304 868 28 Education, training, employment, social services ........................................................ 20,985 26,463 29,685 14,247 14,467 14,579 2,461 3,088 2,915 29 Health .................................................................. 38,785 43,676 49,614 23,830 24,860 26,492 4,532 4,980 4,562 30 Income security1 ............................................... 137,915 146,212 160,198 73,127 81,173 86,007 14,286 15,150 15,937 31 Veterans benefits and services ..................... 18,038 18,974 19,928 9,532 10,127 10,113 1,778 803 2,775 32 Administration of justice ............................... 3,600 3,802 4,153 1,989 2,096 2,174 350 400 347 33 General government ........................................ 3,312 3,737 4,153 2,304 2,291 2,103 422 384 394 34 General-purpose fiscal assistance ............... 9,499 9,601 8,372 4,610 3,890 4,286 102 1,798 51 35 Interest6 ............................................................... 38,009 43,966 52,556 24,036 26,934 29,045 8,695 3,037 4,950 36 Undistributed offsetting receipts6 7 ............ -15,053 -15,772 -18,489 -8,199 -8,999 -12,164 -6,879 -1,166 -945 1. Effective June 1978, earned income credit payments in excess of an indi­ 6. Effective September 1976, “Interest” and “Undistributed Offsetting Re­ vidual’s tax liability, formerly treated as income tax refunds, are classified as ceipts” reflect the accounting conversion for the interest on special issues for U.S. outlays retroactive to January 1976. government accounts from an accrual basis to a cash basis. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. 7. Consists of interest received by trust funds, rents and royalties on the Outer 3. Old-age, disability, and hospital insurance. Continental Shelf, and U.S. government contributions for 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 U.S. 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous re­ Government” and the Budget of the U.S. Government, Fiscal Year 1981. ceipts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Financial Statistics □ April 1980 1.41 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1977 1978 1979 Item Sept. 30 Dec. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31. 1 Federal debt outstanding ................................................. 709.1 729.2 758.8 780.4 797.7 804.6 812.2 833.8 852.2 2 Public debt securities ................................................................. 698.8 718.9 749.0 771.5 789.2 796.8 804.9 826.5 845.1 3 Held by public ......................................................................... 543.4 564.1 587.9 603.6 619.2 630.5 626.4 638.8 658.0 4 Held by agencies .................................................................... 155.5 154.8 161.1 168.0 170.0 166.3 178.5 187.7 187.1 5 Agency securities ........................................................................ 10.3 10.2 9.8 8.9 8.5 7.8 7.3 7.2 7.1 6 Held by public ......................................................................... 8.5 8.4 8.0 7.4 7.0 6.3 5.9 5.8 5.6 7 Held by agencies .................................................................... 1.8 1.8 1.8 1.5 1.5 1.5 1.5 1.5 1.5 8 Debt subject to statutory limit ........................................ 700.0 720.1 750.2 772.7 790.3 797.9 806.0 827.6 846.2 9 Public debt securities ................................................................. 698.2 718.3 748.4 770.9 788.6 796.2 804.3 825.9 844.5 10 Other debt1 ................................................................................... 1.7 1.7 1.8 1.8 1.7 1.7 1.7 1.7 1.7 11 Memo. Statutory debt limit .................................................... 700.0 752.0 752.0 798.0 798.0 798.0 830.0 830.0 879.0 1. Includes guaranteed debt of government agencies, specified participation cer- Note. Data from Treasury Bulletin (U.S. Treasury Department), tificates, 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 1980 Type and holder 1975 1976 1977 1978 Nov. Dec. Jan. Feb. Mar. 1 Total gross public debt .................................................... 576.6 653.5 718.9 789.2 833.8 845.1 847.7 854.6 863.5 By type 2 Interest-bearing debt ................................................................. 575.7 652.5 715.2 782.4 832.7 844.0 846.5 853.4 862.2 3 Marketable .................................................................................... 363.2 421.3 459.9 487.5 519.6 530.7 535.7 540.6 557.5 4 Bills ............................................................................................. 157.5 164.0 161.1 161.7 165.1 172.6 175.5 177.4 190.8 5 Notes .......................................................................................... 167.1 216.7 251.8 265.8 279.7 283.4 284.0 286.8 290.4 6 Bonds .......................................................................................... 38.6 40.6 47.0 60.0 74.8 74.7 76.1 76.4 76.3 7 Nonmarketable1 .......................................................................... 212.5 231.2 255.3 294.8 313.2 313.2 310.9 312.7 304.7 8 Convertible bonds2 ................................................................. 2.3 2.3 2.2 2.2 2.2 2.2 2.2 2.2 2.2 9 State and local government series .................................... 1.2 4.5 13.9 24.3 24.5 24.6 24.8 24.5 23.9 10 Foreign issues3 ......................................................................... 21.6 22.3 22.2 29.6 29.2 28.8 30.0 29.6 26.9 11 Government ......................................................................... 21.6 22.3 22.2 28.0 23.9 23.6 23.6 23.2 20.5 12 Public ...................................................................................... 0 0 0 1.6 5.3 5.3 6.4 6.4 6.4 13 Savings bonds and notes ..................................................... 67.9 72.3 77.0 80.9 80.0 79.9 78.6 77.7 76.0 14 Government account series4 ............................................... 119.4 129.7 139.8 157.5 177.0 177.5 174.9 178.4 175.5 15 Non-interest-bearing debt ........................................................ 1.0 1.1 3.7 6.8 1.1 1.2 1.2 1.2 1.2 By holder5 16 U.S. government agencies and trust funds ........................ 139.1 147.1 154.8 170.0 187.1 187.1 184.5 17 Federal Reserve Banks ............................................................. 89.8 97.0 102.5 109.6 118.1 117.5 116.3 18 Private investors .......................................................................... 349.4 409.5 461.3 508.6 528.6 540.5 546.9 19 Commercial banks ...................................................................... 85.1 103.8 101.4 93.4 95.0 97.0 97.1 20 Mutual savings banks ................................................................ 4.5 5.9 5.9 5.2 4.3 4.2 4.0 21 Insurance companies ................................................................. 9.5 12.7 15.1 15.0 14.4 14.4 14.4 22 Other companies ......................................................................... 20.2 27.7 22.7 20.6 24.0 23.9 24.5 n.a. n.a. 23 State and local governments .................................................. 34.2 41.6 55.2 68.6 68.2 68.2 71.7 Individuals 24 Savings bonds .......................................................................... 67.3 72.0 76.7 80.7 80.1 79.9 78.6 25 Other securities ....................................................................... 24.0 28.8 28.6 30.0 33.7 34.2 34.7 26 Foreign and international6 ....................................................... 66.5 78.1 109.6 137.8 120.6 123.8 125.1 27 Other miscellaneous investors7 .............................................. 38.0 38.9 46.1 57.4 88.3 94.8 96.9 1. Includes (not shown separately): Securities issued to the Rural Electrification 6. Consists of the investments of foreign balances and international accounts in Administration, depositary bonds, retirement plan bonds, and individual retire­ the United States. Beginning with July 1974, the figures exclude non-interestment bonds. bearing notes issued to the International Monetary Fund. 2. These nonmarketable bonds, also known as Investment Series B Bonds, may 7. Includes savings and loan associations, nonprofit institutions, corporate pen­ be exchanged (or converted) at the owner’s option for \Vi percent, 5-year mar­ sion trust funds, dealers and brokers, certain government deposit accounts, and ketable Treasury notes. Convertible bonds that have been so exchanged are re­ government sponsored agencies. moved from this category and recorded in the notes category above. Note. Gross public debt excludes guaranteed agency securities and, beginning 3. Nonmarketable dollar-denominated and foreign currency denominated series in July 1974, includes Federal Financing Bank security issues. held by foreigners. Data by type of security from Monthly Statement of the Public Debt of the United 4. Held almost entirely by U.S. government agencies and trust funds. States (U.S. Treasury Department); data by holder from Treasury Bulletin. 5. Data for Federal Reserve Banks and U.S. government agencies and 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 1980 1979 1980 Type of holder 1977 1978 1977 1978 Dec. Jan. Dec. Jan. All maturities 1 to 5 years 1 All holders ....................................................................................... 459,927 487,546 530,731 535,658 151,264 162,886 164,198 165,535 2 U.S. government agencies and trust funds ......................................... 14,420 12,695 11,047 11,048 4,788 3,310 2,555 2,518 3 Federal Reserve Banks .............................................................................. 101,191 109,616 117,458 116,311 27,012 31,283 28,469 27,885 4 Private investors ............................................................................................ 344,315 365,235 402,226 408,300 119,464 128,293 133,173 135,132 5 Commercial banks ................................................................................... 75,363 68,890 69,076 69,136 38,691 38,390 38,346 38,561 6 Mutual savings banks ............................................................................. 4,379 3,499 3,204 3,027 2,112 1,918 1,668 1,641 12,378 11,635 11,496 11,461 4,729 4,664 4,518 4,422 8 Nonfinancial corporations ...................................................................... 9,474 8,272 8,433 8,690 3,183 3,635 2,844 3,030 9 Savings and loan associations .............................................................. 4,817 3,835 3,209 3,124 2,368 2,255 1,763 1,789 10 State and local governments ................................................................ 15,495 18,815 15,735 17,681 3,875 3,997 3,487 4,095 11 All others ..................................................................................................... 222,409 250,288 291,072 295,181 64,505 73,433 80,546 81,594 Total, within 1 year 5 to 10 years 12 All holders ........................................................................................ 230,691 228,516 255,252 257,400 45,328 50,400 50,440 50,437 13 U.S. government agencies and trust funds ......................................... 1,906 1,488 1,629 1,668 2,129 1,989 871 871 14 Federal Reserve Banks ............................................................................... 56,702 52,801 63,219 62,903 10,404 14,809 12,977 12,774 15 Private investors ............................................................................................ 172,084 174,227 190,403 192,829 32,795 33,601 36,592 36,793 16 Commercial banks ................................................................................... 29,477 20,608 20,171 20,249 6,162 7,490 8,086 7,775 17 Mutual savings banks ............................................................................. 1,400 817 836 672 584 496 459 462 18 Insurance companies ............................................................................... 2,398 1,838 2,016 1,971 3,204 2,899 2,815 2,847 19 Nonfinancial corporations ...................................................................... 5,770 4,048 4,933 4,541 307 369 308 309 20 Savings and loan associations .............................................................. 2,236 1,414 1,301 1,184 143 89 69 73 21 State and local governments ................................................................ 7,917 8,194 5,607 6,568 1,283 1,588 1,540 1,695 22 All others ..................................................................................................... 122,885 137,309 155,539 157,643 21,112 20,671 23,314 23,631 Bills, within 1 year 10 to 20 years 23 All holders ........................................................................................ 161,081 161,747 172,644 175,522 12,906 19,800 27,588 29,032 24 U.S. government agencies and trust funds ......................................... 32 2 0 3,102 3,876 4,520 4,520 25 Federal Reserve Banks ............................................................................... 42,004 42,397 45,337 45,264 1,510 2,088 3.272 3,265 26 Private investors ............................................................................................ 119,035 119,348 127,306 130,258 8,295 13,836 19,796 21,247 27 Commercial banks ................................................................................... 11,996 5,707 5,938 6,461 456 956 993 1,238 28 Mutual savings banks ............................................................................. 484 150 262 136 137 143 127 125 29 Insurance companies ............................................................................... 1,187 753 473 465 1,245 1,460 1,305 1,299 30 Nonfinancial corporations ...................................................................... 4,329 1.792 2,793 2,504 133 86 218 327 31 Savings and loan associations .............................................................. 806 262 219 234 54 60 58 58 32 State and local governments ................................................................ 6,092 5,524 3,100 3,726 890 1,420 1,762 1,803 33 All others ..................................................................................................... 94,152 105,161 114,522 116,732 5,380 9,711 15,332 16,397 Other, within 1 year Over 20 years 34 All holders ........................................................................................ 69,610 66,769 82,608 81,878 19,738 25,944 33,254 33,254 35 U.S. government agencies and trust funds ......................................... 1,874 1,487 1,629 1,668 2,495 2,031 1,472 1,472 36 Federal Reserve Banks ............................................................................... 14,698 10,404 17,882 17,640 5,564 8,635 9,520 9,483 37 Private investors ............................................................................................ 53,039 54,879 63,097 62,571 11,679 15,278 22,262 22,299 38 Commercial banks ................................................................................... 15,482 14,901 14,233 13,788 578 1,446 1,470 1,313 39 Mutual savings banks ............................................................................. 916 667 574 536 146 126 113 126 40 Insurance companies ............................................................................. 1,211 1,084 1,543 1,505 802 774 842 924 41 Nonfinancial corporations ...................................................................... 1,441 2,256 2,140 2,037 81 135 130 482 42 Savings and loan associations .............................................................. 1,430 1,152 1,081 950 16 17 19 19 43 State and local governments ................................................................ 1,825 2,670 2,508 2,842 1,530 3,616 3,339 3,520 44 All others ..................................................................................................... 28,733 32,149 41,017 40,912 8,526 9,164 16,340 15,915 Note. Direct public issues only. Based on Treasury Survey of Ownership from 460 mutual savings banks, and 723 insurance companies, each about 80 percent; Treasury Bulletin (U.S. Treasury Department). (2) 420 nonfinancial corporations and 483 savings and loan associations, each about Data complete for U.S. government agencies and trust funds and Federal Re­ 50 percent; and (3) 492 state and local governments, about 40 percent. serve Banks, but data for other groups include only holdings of those institutions “All others,” a residual, includes holdings of all those not reporting in the that report. The following figures show, for each category, the number and pro­ Treasury Survey, including investor groups not listed separately. portion reporting as of Jan. 31, 1980: (1) 5,389 commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Financial Statistics □ April 1980 1.44 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1979 1980 1979 and 1980, week ending Wednesday Item 1976 1977 1978 Dec/ Jan/ Feb. Dec. 5 Dec. 12 Dec. 19 Dec. 26 Jan. 2 Jan. 9 1 U.S. government securities . 10,449 16,180 17,530 16,973 17,851 16,122 11,581 16,169 17,656 By maturity 2 Bills ............................. 6,676 6,746 6,173 10,529 10,519 9,726 10,703 11,275 11,320 7,638 12,194 11,548 3 Other within 1 year . 210 237 392 591 488 356 864 561 530 283 845 601 4 1-5 years .................... 2,317 2,320 1,889 2,380 2,694 3,680 2,553 3,033 1,932 2,563 1,968 2,655 5 5-10 years .................. 1,019 1,148 965 1,159 990 2,014 1,720 1,684 1,264 501 542 939 6 Over 10 years .......... 229 388 866 963 1,488 1,754 1,134 1,297 1,077 597 619 1,913 By type of customer 7 U.S. government securities dealers ............................. 1,267 1,135 1,905 1,507 2,817 1,810 8 U.S. government securities brokers ............................ 3,407 3,709 3,838 5,384 6,700 7,409 6,524 7,252 5,701 3,370 3,981 7,001 9 Commercial banks ............... 2,426 2,295 1,804 2,025 2,026 2,243 2,105 2,344 1,837 1,891 2,128 2,600 10 All others1 ............................... 3,257 3,568 3,508 6,306 5,734 6,502 6,344 6,554 6,997 4,813 7,243 6,244 11 Federal agency securities 1,894 3,051 3,223 3,268 3,284 2,252 2,540 1. Includes, among others, all other dealers and brokers in commodities and Transactions are market purchases and sales of U.S. government securities deal­ securities, foreign banking agencies, and the Federal Reserve System. ers reporting to the Federal Reserve Bank of New York. The figures exclude allotments of, and exchanges for, new U.S. government securities, redemptions Note. Averages for transactions are based on number of trading days in the of called or matured securities, or purchases or sales of securities under repurchase, period. 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 1980 1979, week ending Wednesday Item Jan .p Feb Nov. 14 Nov. 21 Nov. 28 Dec. 5 Dec. 12 Dec. 19 Positions1 1 U.S. government securities 7,592 5,172 2,656 3,888 3,443 2,734 4,752 3,285 5,097 4,677 5,151 3,507 2 Bills ......................................... 6,290 4,772 2,452 5,789 4,386 2,941 5,009 4,222 5,777 6,058 7,564 6,084 3 Other within 1 year ........... 188 99 260 -1,548 -1,094 -790 -682 -888 -1,014 -1,249 -1,683 -1,719 4 1-5 years ............................... 515 60 -92 -679 -305 28 -300 -530 -132 -642 -1,128 -1,258 5 5-10 years ............................ 402 92 40 385 123 327 332 213 338 586 441 409 6 Over 10 years ..................... 198 149 -4 -59 333 227 393 267 128 -76 -44 -10 7 Federal agency securities . 729 693 606 1,309 998 236 1,544 1,497 1,538 1,267 1,236 1,150 Financing2 8 All sources ................................... 8,715 9,877 10,204 20,890 16,097 15,997 18,328 19,981 20,442 21,275 21,426 22,186 Commercial banks 9 New York City ............................ 1,896 1,313 599 1,638 869 749 2,107 2,194 1,594 1,578 1,667 1,407 10 Outside New York City .......... 1,660 1,987 2,174 3,707 3,878 3,661 3,238 3,657 3,617 3,857 3,982 3,862 11 Corporations3 ................................... 1,479 2,423 2,370 4,498 3,672 3,731 3,469 4,119 4,817 5,509 5,237 4,777 12 All others ........................................... 3,681 4,155 5,052 11,048 7,678 7,856 9,514 10,011 10,414 10,332 10,540 12,140 1. New amounts (in terms of par values) of securities owned by nonbank dealer agency securities (through both collateral loans and sales under agreements to firms and dealer departments of commercial banks on a commitment, that is, repurchase), plus internal funds used by bank dealer departments to finance po­ trade-date basis, including any such securities that have been sold under agree­ sitions in such securities. Borrowings against securities held under agreeement to ments to repurchase. The maturities of some repurchase agreements are sufficiently resell are excluded where the borrowing contract and the agreement to resell are long, however, to suggest that the securities involved are not available for trading equal in amount and maturity, that is, a matched agreement. purposes. Securities owned, and hence dealer positions, do not include securities 3. All business corporations except commercial banks and insurance companies. purchased under agreement to resell. 2. Total amounts outstanding of funds borrowed by nonbank dealer firms and Note. Averages for positions are based on number of trading days in the period; dealer departments of commercial banks against U.S. government and federal those for financing, on the number of calendar days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A35 1.46 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt outstanding Millions of dollars, end of period 1979 Agency 1976 1977 1978 July Aug. Sept. Oct. Nov. Dec. 1 Federal and federally sponsored agencies1 ..................... 103,848 112,472 137,063 152,653 153,788 154,753 158,298' 161,653 163,290 2 Federal agencies .......................................................................... 22,419 22,760 23,488 24,274 24,415 24,341 24,151 24,224 24,715 3 Defense Department2 ........................................................... 1,113 983 968 787 777 767 757 748 738 4 Export-import Bank3 4 ......................................................... 8,574 8,671 8,711 8,783 8,781 8,886 8,881 8,812 9,191 5 Federal Housing Administration5 ............................... 575 581 588 559 552 551 547 545 537 6 Government National Mortgage Association participation certificates6 ..................................... 4,120 3,743 3,141 3,004 3,004 3,004 3,004 3,004 2,979 7 Postal Service7 ............................................................. 2,998 2,431 2,364 2,202 2,202 1,837 1,837 1,837 1,837 8 Tennessee Valley Authority ........................................ 4,935 6,015 7,460 8,495 8,655 8,850 8,670 8,825 8,997 9 United States Railway Association7 ................................ 104 336 356 444 444 446 455 453 436 10 Federally sponsored agencies1 ............................................... 81,429 89,712 113,575 128,379 129,373 130,412 134,147 137,429 138,575 11 Federal Home Loan Banks ...................................... ...... 16,811 18,345 27,563 29,600 29,994 30,303 31,874 33,296 33,330 12 Federal Home Loan Mortgage Corporation .............. 1,690 1,686 2,262 2,522 2,720 2,622 2,621 2,621 2,771 13 Federal National Mortgage Association .................... 30,565 31,890 41,080 46,341 46,108 46,378 46,861 47,278 48,486 14 Federal Land Banks .................................................... 17,127 19,118 20,360 17,075 17,075 17,075 16,006 16,006 16,006 15 Federal Intermediate Credit Banks ................................ 10,494 11,174 11,469 4,269 3,427 2,676 2,676 2,676 2,676 16 Banks for Cooperatives ............................................... 4,330 4,434 4,843 785 785 785 584 584 584 17 Farm Credit Banks1 ........................................................... 2,548 5,081 26,606 28,033 29,297 32,189 33,547 33,216 18 Student Loan Marketing Association8 ............................ 410 515 915 1,180 1,230 1,275 1,335 1,420 1,505 19 Other ............................................................................ 2 2 2 1 1 1 1 1 1 Memo; 20 Federal Financing Bank debt7 9....................................... 28,711 38,580 51,298 61,798 62,880 64,211 65,583 66,281 67,383 Lending to federal and federally sponsored agencies 21 Export-import Bank4 ....................................................... 5,208 5,834 6,898 7,846 7,846 7,953 7,953 7,953 8,353 22 Postal Service7 ................................................................. 2,748 2,181 2,114 1,952 1,952 1,587 1,587 1,587 1,587 23 Student Loan Marketing Association8 ........................... 410 515 915 1,180 1,230 1,275 1,335 1,420 1,505 24 Tennessee Valley Authority ........................................... 3,110 4,190 5,635 6,770 6,930 7,125 6,945 7,100 7,272 25 United States Railway Association7 ............................... 104 336 356 444 444 446 455 453 436 Other Lending10 26 Farmers Home Administration ....................................... 10,750 16,095 23,825 29,765 30,445 31,080 31,670 31,950 32,050 27 Rural Electrification Administration ................................... 1,415 2,647 4,604 5,639 5,754 5,926 6,157 6,272 6,484 28 Other .............................................................................................. 4,966 6,782 6,951 8,202 8,279 8,819 9,481 9,546 9,696 1. In September 1977 the Farm Credit Banks issued their first consolidated of Housing and Urban Development; Small Business Administration; and the bonds, and in January 1979 they began issuing these bonds on a regular basis to Veterans Administration. replace the financing activities of the Federal Land Banks, the Federal Interme­ 7. Off-budget. diate Credit Banks, and the Banks for Cooperatives. Line 17 represents those 8. Unlike other federally sponsored agencies, the Student Loan Marketing As­ consolidated bonds outstanding, as well as any discount notes that have been sociation may borrow from the Federal Financing Bank (FFB) since its obligations issued. Lines 1 and 10 reflect the addition of this item. are guaranteed by the Department of Health, Education, and Welfare. 2. Consists of mortgages assumed by the Defense Department between 1957 9. The FFB, which began operations in 1974, is authorized to purchase or sell and 1963 under family housing and homeowners assistance programs. obligations issued, sold, or guaranteed by other federal agencies. Since FFB incurs 3. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. debt solely for the purpose of lending to other agencies, its debt is not included 4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. in the main portion of the table in order to avoid double counting. 5. Consists of debentures issued in payment of Federal Housing Administration 10. Includes FFB purchases of agency assets and guaranteed loans; the latter insurance claims. Once issued, these securities may be sold privately on the se­ contain loans guaranteed by numerous agencies with the guarantees of any par­ curities market. ticular agency being generally small. The Farmers Home Administration item 6. Certificates of participation issued prior to fiscal 1969 by the Government consists exclusively of agency assets, while the Rural Electrification Administration National Mortgage Association acting as trustee for the Farmers Home Admin­ entry contains both agency assets and guaranteed loans. istration; Department of Health, Education, and Welfare; Department Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Financial Statistics □ April 1980 1.47 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1979 Type of issue or issuer, 1977 1978 1979 July Aug. Sept. Oct. Nov. Dec. 1 All issues, new and refunding1 ................................................... 46,769 48,607 43,490 3,399 4,266 2,479 4,229 4,172 3,583 Type of issue 2 General obligation ................................................................................... 18,042 17,854 12,109 779 743 699 1,037 805 855 3 Revenue ..................................................................................................... 28,655 30,658 31,256 2,617 3,513 1,773 3,180 3,355 2,712 4 Housing Assistance Administration2 ................................................. 5 U.S. government loans .......................................................................... 72 95 125 3 10 7 12 12 16 Type of issuer 6 State ............................................................................................................. 6,354 6,632 4,314 234 200 113 294 274 569 7 Special district and statutory authority ............................................ 21,717 24,156 23,434 1,598 2,558 1,404 2,749 2,697 2,102 8 Municipalities, counties, townships, school districts ................... 18,623 17,718 15,617 1,564 1,498 955 1,174 1,189 896 9 Issues for new capital, total ........................................................ 36,189 37,629 41,505 2,902 4,202 2,436 4,171 3,702 3,186 Use of proceeds 10 Education .................................................................................................... 5,076 5,003 5,130 383 556 218 311 298 408 11 Transportation .......................................................................................... 2,951 3,460 2,441 149 151 38 562 97 214 12 Utilities and conservation ..................................................................... 8,119 9,026 8,594 608 817 336 1,426 515 409 13 Social welfare ........................................................................................... 8,274 10,494 15,968 1,166 1,749 1,082 1,191 2,042 1,724 14 Industrial aid ............................................................................................. 4,676 3,526 3,836 328 422 382 427 369 157 15 Other purposes ......................................................................................... 7,093 6,120 5,536 268 507 380 254 381 274 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 contri­ butions to the local authority. 1.48 NEW SECURITY ISSUES of Corporations Millions of dollars 1979 Type of issue or issuer, 1977 1978 1979 or use July Aug. Sept. Oct. Nov. Dec. 1 All issues1 .................................................................................... 53,792 47,230 51,102 4,095 4,083 4,308 4,561 3,834 3,774 2 Bonds ........................................................................................... 42,015 36,872 39,690 3,114 2,859 3,021 3,532 2,589 2,441 Type of offering 3 Public ............................................................................................................ 24,072 19,815 25,815 2,247 1,973 2,167 2,669 1,583 1,500 4 Private placement .................................................................................... 17,943 17,057 13,877 867 886 854 863 1,006 941 Industry group 5 Manufacturing ........................................................................................... 12,204 9,572 9,590 968 806 1,095 1,334 322 265 6 Commercial and miscellaneous ........................................................... 6,234 5,246 3,939 241 413 361 214 207 455 7 Transportation .......................................................................................... 1,996 2,007 3,054 380 171 175 296 257 187 8 Public utility .............................................................................................. 8,262 7,092 8,058 174 137 620 1,107 663 743 9 Communication ........................................................................................ 3,063 3,373 4,198 26 336 418 433 854 55 10 Real estate and financial ....................................................................... 10,258 9,586 10,853 1,325 996 353 147 287 737 11 Stocks ........................................................................................... 11,777 10,358 11,410 981 1,224 1,287 1,029 1,245 1,333 Type 12 Preferred .................................................................................................... 3,916 2,832 3,650 392 401 698 195 465 289 13 Common ...................................................................................................... 7,861 7,526 7,760 589 823 589 834 780 1,044 Industry group 14 Manufacturing ........................................................................................... 1,189 1,241 1,686 38 360 394 151 158 231 15 Commercial and miscellaneous ........................................................... 1,834 1,816 2,623 173 266 218 98 286 430 16 Transportation .......................................................................................... 456 263 255 142 4 2 17 Public utility .............................................................................................. 5,865 5,140 5,218 598 366 527 662 607 365 18 Communication ........................................................................................ 1,379 264 303 68 83 47 2 1 19 Real estate and financial ....................................................................... 1,049 1,631 1,324 103 91 61 70 190 306 1. Figures, which represent gross proceeds of issues maturing in more than one 1933, employee stock plans, investment companies other than closed-end, intra­ year, sold for cash in the United States, are principal amount or number of units corporate transactions, and sales to foreigners, multiplied by offering price. Excludes offerings of less than $100,000, secondary offerings, undefined or exempted issues as defined in the Securities Act of Source. Securities and Exchange Commission. 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 1980 Item 1978 1979 Aug. Sept. Oct. Nov. Dec. Jan.' Feb. Investment Companies1 1 Sales of own shares2 ................................................................... 6,645 7,495 675 580 617 690 748 957 773 2 Redemptions of own shares3 .................................................. 7,231 8,393 832 784 805 579 743 776 882 3 Net sales ......................................................................................... -586 -898 -157 -204 -188 111 5 181 -109 4 Assets4 ............................................................................................ 44,980 49,493 50,802 50,147 46,271 48,613 49,277' 51,278 49,512 5 Cash position5 .......................................................................... 4,507 4,983 4,924 5,016 4,521 4,984 4,983 5,702 5,895 6 Other .......................................................................................... 40,473 44,510 45,878 45,131 41,750 43,629 44,294' 45,576 43,617 1. Excluding money market funds. 5. Also includes all U.S. government securities and other short-term debt se­ 2. Includes reinvestment of investment income dividends. Excludes reinvest­ curities. ment of capital gains distributions and share issue of conversions from one fund to another m the same group. Note. Investment Company Institute data based on reports of members, which 3. Excludes share redemption resulting from conversions from one fund to an­ comprise substantially all open-end investment companies registered with the Se­ other in the same group. curities and Exchange Commission. Data reflect newly formed companies after 4. Market value at end of period, less current liabilities. their initial offering of securities. 1.50 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1978 1979 Account 1977 1978 1979 Q2 Q3 Q4 01 Q2 Q3 Q4 1 Profits before tax ...................................................... 177.1 206.0 237.4 207.2 212.0 227.4 233.3 227.9 242.3 246.2 2 Profits tax liability ............................................................. 72.6 84.5 92.9 84.7 87.5 95.1 91.3 88.7 94.0 97.4 3 Profits after tax ................................................................... 104.5 121.5 144.5 122.4 124.5 132.3 142.0 139.3 148.3 148.8 4 Dividends .......................................................................... 42.1 47.2 52.7 46.0 47.8 49.7 51.5 52.3 52.8 54.4 5 Undistributed profits .................................................... 62.4 74.3 91.8 76.4 76.8 82.6 90.5 87.0 95.5 94.4 6 Capital consumption allowances .................................. 109.3 119.8 131.1 119.1 120.6 123.1 125.5 130.4 132.8 135.2 7 Net cash flow ....................................................................... 171.7 194.1 222.9 195.5 197.3 205.7 216.0 217.3 228.3 229.6 Source. Survey of Current Business (U.S. Department of Commerce.). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Financial Statistics □ April 1980 1.51 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1978 1979 Account 1975 1976 1977 Q2 Q3 Q4 Ql Q2 Q3 Q4 1 Current assets ........................................................... 759.0 826.3 900.9 954.2 992.6 1,028.1 1,078.6 1,110.6 1,169.6 1,199.9 2 Cash ......................................................................................... 82.1 87.3 94.3 91.3 91.7 103.7 102.4 100.1 103.6 116.2 3 U.S. government securities ............................................ 19.0 23.6 18.7 17.3 16.1 17.8 19.2 20.8 17.8 17.8 4 Notes and accounts receivable ...................................... 272.1 293.3 325.0 356.0 376.4 381.9 405.3 419.0 448.9 451.7 5 Inventories ............................................................................ 315.9 342.9 375.6 399.3 415.5 428.3 452.6 469.2 492.7 503.9 6 Other ...................................................................................... 69.9 79.2 87.3 90.3 92.9 96.3 99.1 101.5 106.7 110.3 7 Current liabilities ...................................................... 451.6 492.7 546.8 593.5 626.0 661.9 701.6 723.9 773.7 803.7 8 Notes and accounts payable ........................................... 264.2 282.0 313.7 338.0 356.2 375.1 392.6 410.8 443.1 460.8 9 Other ...................................................................................... 187.4 210.6 233.1 255.6 269.7 286.8 309.0 313.2 330.6 342.8 10 Net working capital .................................................. 307.4 333.6 354.1 360.6 366.6 366.2 377.0 386.7 395.9 396.3 11 Memo: Current ratio 1 ..................................................... 1.681 1.677 1.648 1.608 1.586 1.553 1.537 1.534 1.512 1.493 1. Ratio of total current assets to total current liabilities. All data in this table reflect the most current benchmarks. Complete data are available upon request from the Flow of Funds Section, Division of Research and Note: For a description of this series, see “Working Capital of Nonfinancial Statistics. Corporations” in the July 1978 Bulletin, pp. 533-37. Source. Federal Trade Commission. 1.52 BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1978 1979 1980 Industry 1978 1979 Q3 Q4 Ql Q2 Q3 Q4 Ql2 Q22 1 All industries ....................................................................... 153.82 177.09 155.41 163.96 165.94 173.48 179.33 186.95 189.49 193.83 Manufacturing 2 Durable goods industries ................................................. 31.66 38.23 32.25 33.99 34.00 36.86 39.72 41.30 42.60 44.63 3 Nondurable goods industries ......................................... 35.96 40.69 35.50 39.26 37.56 39.56 40.50 43.88 43.21 44.38 Nonmanufacturing 4 Mining .................................................................................... 4.78 5.56 4.99 4.98 5.46 5.31 5.42 6.06 6.49 5.97 Transportation 5 Railroad ............................................................................. 3.32 3.93 3.38 3.49 4.02 3.66 4.03 4.20 4.08 4.08 6 Air ....................................................................................... 2.30 3.24 2.20 2.39 3.35 3.26 3.10 3.39 4.50 3.86 7 Other .................................................................................. 2.43 2.95 2.47 2.55 2.71 2.79 3.16 3.15 3.42 3.64 Public utilities 8 Electric ............................................................................... 29.48 32.56 24.92 26.95 27.70 28.06 28.32 26.02 27.94 27.96 9 Gas and other ................................................................. 4.70 5.07 4.70 4.78 4.66 5.18 5.01 5.50 5.28 5.61 1 11 0 C Co o m m m m e u r n c i i c a a l t i a o n n d . o .. t .. h .. e .. r .. 1 . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 5 8 . . 7 1 1 6 2 2 0 9. . 3 5 5 6 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 2 2 0 9 . . 4 6 1 6 2 3 2 0 . . 7 7 1 2 51 97 J^D . 7/1I 1. Includes trade, service, construction, finance, and insurance. agriculture; real estate operators; medical, legal, educational, and cultural service; 2. Anticipated by business. 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 1979 Account 1973 1974 1975 1976 1977 1978 Ql Q2 Q3 Q4 Assets Accounts receivable, gross 1 Consumer .............................................................................. 35.4 36.1 36.0 38.6 44.0 52.6 54.9 58.7 62.3 65.7 2 Business ................................................................................. 32.3 37.2 39.3 44.7 55.2 63.3 66.7 70.1 68.1 70.3 3 Total ................................................................................... 67.7 73.3 75.3 83.4 99.2 116.0 121.6 128.8 130.4 136.0 4 Less: Reserves for unearned income and losses .... 8.4 9.0 9.4 10.5 12.7 15.6 16.5 17.7 18.7 20.0 5 Accounts receivable, net ................................................. 59.3 64.2 65.9 72.9 86.5 100.4 105.1 111.1 111.7 116.0 6 Cash and bank deposits .................................................. 2.6 3.0 2.9 2.6 2.6 3.5 7 Securities .............................................................................. .8 .4 1.0 1.1 .9 1.3 }• 23.81 24.6 25.8 24.9 8 All other ................................................................................ 10.6 12.0 11.8 12.6 14.3 17.3 9 Total assets ............................................................... 73.2 79.6 81.6 89.2 104.3 122.4 128.9 135.8 137.4 140.9 Liabilities 10 Bank loans ........................................................................... 7.2 9.7 8.0 6.3 5.9 6.5 6.5 7.3 7.8 8.5 11 Commercial paper ............................................................ 19.7 20.7 22.2 23.7 29.6 34.5 38.1 41.0 39.2 43.3 Debt 12 Short-term, n.e.c............................................................. 4.6 4.9 4.5 5.4 6.2 8.1 6.7 8.8 9.1 8.2 13 Long-term n.e.c................................................................ 24.6 26.5 27.6 32.3 36.0 43.6 44.5 46.0 47.5 46.7 14 Other ................................................................................. 5.6 5.5 6.8 8.1 11.5 12.6 15.1 14.4 15.4 14.2 15 Capital, surplus, and undivided profits ...................... 11.5 12.4 12.5 13.4 15.1 17.2 18.0 18.2 18.4 19.9 16 Total liabilities and capital ....................................... 73.2 79.6 81.6 89.2 104.3 122.4 128.9 135.8 137.4 140.9 1. Beginning Ql 1979, asset items on lines 6, 7, and 8 are combined. Note. Components may not add to totals due to rounding. 1.54 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted Changes in accounts Extensions Repayments receivable Accounts receivable Type ou J t a s n ta . n 3 d 1 i , n g 1979 1980 1979 1980 1979 1980 19801 Nov. Dec. Jan. Nov. Dec. Jan. Nov. Dec. Jan. 1 Total .............................................................................. 69,503 242 -561 -473 16,505 16,443 16,918 16,263 17,004 17,391 2 Retail automotive (commercial vehicles) ......... 15,176 -41 -83 -55 1,135 1,096 1,127 1,176 1,179 1,182 3 Wholesale automotive ............................................ 13,036 -319 -763 -849 5,082 5,028 5,094 5,401 5,791 5,943 4 Retail paper on business, industrial and farm equipment ................................................. 19,216 261 264 555 1,252 1,398 1,468 991 1,134 913 5 Loans on commercial accounts receivable2 .... I 7,027 304 285 180 6,635 6,806 7,085 6,331 6,521 6,905 6 Factored commercial accounts receivable2 ...... 7 All other business credit ........................................ 15,048 37 -264 -304 2,401 2,115 2,144 2,364 2,379 2,448 1. Not seasonally adjusted. 2. Beginning January 1979 the categories “Loans on commercial accounts re­ ceivable” and “Factored commercial accounts receivable” are combined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Financial Statistics □ April 1980 1.55 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1979 1980 Item 1976 1977 1978 Oct. Nov. Dec. Jan. Feb. Mar.P Terms and yields in primary and secondary markets Primary Markets Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) ............ 48.4 54.3 62.6 76.4 77.1 79.4 76.9 79.8 76.1 2 Amount of loan (thousands of dollars) ......... 35.9 40.5 45.9 54.9 55.4 56.0 54.4 56.6 53.9 3 Loan/price ratio (percent) .................................. 74.2 76.3 75.3 73.7 73.8 72.9 73.0 72.5 71.8 4 Maturity (years) ..................................................... 27.2 27.9 28.0 28.5 28.5 28.8 28.1 28.8 27.4 5 Fees and charges (percent of loan amount)2 1.44 1.33 1.39 1.70 1.82 1.85 2.11 1.79 1.91 6 Contract rate (percent per annum) ................ 8.76 9.30 10.91 11.04 11.30 11.48 11.60 12.26 Yield (percent per annum) 7 FHLBB series3 ...................................................... 8.99 9.01 9.54 11.21 11.37 11.64 11.87 11.93 12.62 8 HUD series4 ........................................................... 8.99 8.95 9.68 12.15 12.50 12.50 12.80 14.10 14.10 Secondary Markets Yield (percent per annum) 9 FHA mortgages (HUD series)5 ...................... 8.82 8.68 9.70 n.a. 12.41 12.24 12.60 n.a. n.a. 10 GNMA securities6 ................................................. 8.17 8.04 8.98 11.25 11.57 11.35 11.94 13.16 13.79 FNMA auctions7 11 Government-underwritten loans ................ 8.99 8.73 9.77 12.52 12.75 12.48 12.90 14.48 15.64 12 Conventional loans .......................................... 9.11 8.98 10.01 12.85 13.66 12.98 13.20 14.12 16.62 Activity in secondary markets Federal National Mortgage Association Mortgage holdings (end of period) 13 Total .......................................................................................... 32,904 34,370 43,311 49,744 50,350 51,091 52,106 53,063 n.a. 14 FHA-insured ...................................................................... 18,916 18,457 21,243 23,899 24,178 24,489 24,906 25,146 n.a. 15 VA-guaranteed ................................................................. 9,212 9,315 10,544 10,327 10,374 10,496 10,653 10,885 n.a. 16 Conventional ...................................................................... 4,776 6,597 11,524 15,517 15,797 16,106 16,546 16,853 n.a. Mortgage transactions (during period) 17 Purchases ............................................................................... 3,606 4,780 12,303 859 872 893 1,163 730 n.a. 18 Sales .......................................................................................... 86 67 5 0 0 0 0 0 n.a. Mortgage commitments8 19 Contracted (during period) .............................................. 6,247 9,729 18,960 2,369 496 402 508 999 n.a. 20 Outstanding (end of period) ............................................. 3,398 4,698 9,201 7,472 6,974 6,409 5,671 7,380 n.a. Auction of 4-month commitments to buy Government-underwritten loans 21 Offered9 ............................................................................... 4,929.8 7,974.1 12,978 2,943.4 558.4 649.2 516.0 1,169.4 1,267.3 22 Accepted ............................................................................. 2,787.2 4,846.2 6,747.2 1,130.4 264.6 249.3 213.8 563.7 426.1 Conventional loans 23 Offered9 ............................................................................... 2,595.7 5.675.2 9,933.0 1,049.9 366.1 413.2 443.1 412.1 918.6 24 Accepted ............................................................................. 1,879.2 3,917.8 5,110.9 431.2 190.2 152.4 247.2 147.8 239.9 Federal Home Loan Mortgage Corporation Mortgage holdings (end of period)10 25 Total .......................................................................................... 4,269 3,276 3,064 3,726 3,990 4,035 4,124 4,145 n.a. 26 FHA/VA ............................................................................. 1,618 1,395 1,243 1,120 1,112 1,102 1,098 1,092 n.a. 27 Conventional ...................................................................... 2,651 1,881 1,822 2,606 2,879 2,933 3,026 3,052 n.a. Mortgage transactions (during period) 28 Purchases ................................................................................ 1,175 3,900 6,524 552 458 403 280 248 n.a. 29 Sales .......................................................................................... 1,396 4,131 6,211 530 186 361 180 207 n.a. Mortgage commitments11 30 Contracted (during period) .............................................. 1,477 5,546 7,451 504 221 199 296 197 n.a. 31 Outstanding (end of period) ............................................. 333 1,063 1,410 1,312 1,036 797 779 726 n.a. 1. Weighted averages based on sample surveys of mortgages originated by major securities, assuming prepayment in 12 years on pools of 30-year FHA/VA mort­ institutional lender groups. Compiled by the Federal Home Loan Bank Board in gages carrying the prevailing ceiling rate. Monthly figures are unweighted averages cooperation with the Federal Deposit Insurance Corporation. of Monday quotations for the month. 2. Includes all fees, commissions, discounts, and “points” paid (by the borrower 7. Average gross yields (before deduction of 38 basis points for mortgage or the seller) in order to obtain a loan. servicing) on accepted bids in Federal National Mortgage Association’s auctions 3. Average effective interest rates on loans closed, assuming prepayment at the of 4-month commitments to purchase home mortgages, assuming prepayment in end of 10 years. 12 years for 30-year mortgages. No adjustments are made for FNMA commitment 4. Average contract rates on new commitments for conventional first mortgages, fees or stock related requirements. Monthly figures are unweighted averages for rounded to the nearest 5 basis points; from Department of Housing and Urban auctions conducted within the month. Development. 8. Includes some multifamily and nonprofit hospital loan commitments in ad­ 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing dition to 1- to 4-family loan commitments accepted in FNMA’s free market auction Administration insured first mortgages for immediate delivery in the private sec­ system, and through the FNMA-GNMA tandem plans. ondary market. Any gaps in data are due to periods of adjustment to changes in 9. Mortgage amounts offered by bidders are total bids received. maximum permissible contract rates. 10. Includes participation as well as whole loans. 6. Average net yields to investors on Government National Mortgage Associ­ 11. Includes conventional and government-underwritten loans. ation guaranteed, mortgage-backed, fully modified pass-through Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate Debt A41 1.56 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1978 1979 Type of holder, and type of property 1977 1978 1979 Ol Q2 03 04 A 04 1AH holders ........................................................................ 1,023,505 1,172,754 1,334,373' 1,172,754 1,206,213 1,252,426 1,295,644 1,334,373' 2 1- to 4-family ................................................................................ 656,566 761,843 872,191' 761,843 784,546 816,940 846,115 872,191' 3 Multifamily .................................................................................... 111,841 121,972 130,758' 121,972 123,965 125,916 128,256 130,758' 4Commercial ................................................................................... 189,274 212,746 239,093' 212,746 217,495 224,499 232,120 239,093' 5 65,824 76,193 92,331' 76,193 80,207 85,071 89,153 92,331' 6 Major financial institutions ..................................................... 745,011 848,095 940,268' 848,095 865,974 894,385 919,967 940,268 7 Commercial banks1 ................................................................ 178,979 213,963 246,763 213,963 220,063 229,564 239,363 246,763 8 1- to 4-family ....................................................................... 105,115 126,966 146,077 126,966 130,585 136,223 142,038 146,077 9 Multifamily ............................................................................ 9,215 10,912 12,585 10,912 11,223 11,708 12,208 12,585 10 Commercial .......................................................................... 56,898 67,056 77,737 67,056 68,968 71,945 75,016 77,737 11 Farm ....................................................................................... 7,751 9,029 10,364 9,029 9,287 9,688 10,101 10,364 12 Mutual savings banks ........................................................... 88,104 95,157 98,924 95,157 96,136 97,155 97,929 98,924 13 1- to 4-family ....................................................................... 57,637 62,252 64,717 62,252 62,892 63,559 64,065 64,717 14 Multifamily ............................................................................ 15,304 16,529 17,183 16,529 16,699 16,876 17,010 17,183 15 Commercial .......................................................................... 15,110 16,319 16,965 16,319 16,488 16,662 16,795 16,965 16 Farm ....................................................................................... 53 57 59 57 57 58 59 59 17 Savings and loan associations ............................................ 381,163 432,808 475,797 432,808 441,358 456,543 468,307 475,797 18 1- to 4-family ....................................................................... 310,686 356,114 394,436 356,114 363,723 377,516 387,992 394,436 19 Multifamily ............................................................................ 32,513 36,053 37,588 36,053 36,677 37,071 37,277 37,588 20 Commmercial ...................................................................... 37,964 40,641 43,773 40,641 40,958 41,956 43,038 43,773 21 Life insurance companies .................................................... 96,765 106,167 118,784' 106,167 108,417 111,123 114,368 118,784' 22 1- to 4-family ....................................................................... 14,727 14,436 16,193' 14,436 14,507 14,489 14,884 16,193' 23 Multifamily ........................................................................... 18,807 19,000 19,274' 19,000 19,080 19,102 19,107 19,274' 24 Commercial .......................................................................... 54,388 62,232 71,137' 62.232 63,908 66,055 68,513 71,137' 25 Farm ....................................................................................... 8,843 10,499 12,180' 10,499 10,922 11,477 11,864 12,180' 26 Federal and related agencies .................................................. 70,006 81,853 97,293 81,853 86,689 90,095 93,143 97,293 27 Government National Mortgage Association ............... 3,660 3,509 3,852 3,509 3,448 3,425 3,382 3,852 28 1- to 4-family ....................................................................... 1,548 877 763 877 821 800 780 763 29 Multifamily ............................................................................ 2,112 2,632 3,089 2,632 2,627 2,625 2,602 3,089 30 Farmers Home Administration ......................................... 1,353 926 1,274 926 956 1,200 1,383 1,274 31 1- to 4-family ....................................................................... 626 288 417 288 302 363 163 417 32 Multifamily ........................................................................... 275 320 71 320 180 75 299 71 33 Commercial .......................................................................... 149 101 174 101 283 278 262 174 34 Farm ....................................................................................... 303 217 612 217 191 484 659 612 35 Federal Housing and Veterans Administration .......... 5,212 5,419 5,764 5,419 5,522 5,597 5,672 5,764 36 1- to 4-family ....................................................................... 1,627 1,641 1,863 1,641 1,693 1,744 1,795 1,863 37 Multifamily ............................................................................ 3,585 3,778 3,901 3,778 3,829 3,853 3,877 3,901 38 Federal National Mortgage Association ........................ 34,369 43,311 51,091 43,311 46,410 48,206 49,173 51,091 39 1- to 4-family ....................................................................... 28,504 37,579 45,488 37,579 40,702 42,543 43,534 45,488 40 Multifamily ............................................................................ 5,865 5,732 5,603 5,732 5,708 5,663 5,639 5,603 41 Federal Land Banks .............................................................. 22,136 25,624 31,277 25,624 26,893 28,459 29,804 31,277 42 1- to 4-family ....................................................................... 670 927 1,552 927 1,042 1,198 1,374 1,552 43 Farm ....................................................................................... 21,466 24,697 29,725 24,697 25,851 27,261 28,430 29,725 44 Federal Home Loan Mortgage Corporation ................ 3,276 3,064 4,035 3,064 3,460 3,208 3,729 4,035 45 1- to 4-family ....................................................................... 2,738 2,407 3,059 2,407 2,685 2,489 2,850 3,059 46 Multifamily ............................................................................ 538 657 976 657 775 719 879 976 47 Mortgage pools or trusts2 ........................................................ 70,289 88,633 119,278 88,633 94,551 102,259 110,648 119,278 48 Government National Mortgage Association ............... 44,896 54,347 76,401 54,347 57,955 63,000 69,357 76,401 49 1- to 4-family ....................................................................... 43,555 52,732 74,546 52,732 56,269 61,246 67,535 74,546 50 Multifamily ............................................................................ 1,341 1,615 1,855 1,615 1,686 1,754 1,822 1,855 51 Federal Home Loan Mortgage Corporation ................ 6,610 11,892 15,180 11,892 12,467 13,708 14,421 15,180 52 1- to 4-family ....................................................................... 5,621 9,657 12,149 9,657 10,088 11,096 11,568 12,149 53 Multifamily ........................................................................... 989 2,235 3,031 2,235 2,379 2,612 2,853 3,031 54 Farmers Home Administration ......................................... 18,783 22,394 27,697 22,394 24,129 25,551 26,870 27,697 55 1- to 4-family ....................................................................... 11,397 13,400 14,884 13,400 13,883 14,329 14,972 14,884 56 Multifamily ............................................................................ 759 1,116 2,163 1,116 1,465 1,764 1,763 2,163 57 Commercial .......................................................................... 2,945 3,560 4,328 3,560 3,660 3,833 4,054 4,328 58 Farm ....................................................................................... 3,682 4,318 6,322 4,318 5,121 5,625 6,081 6,322 59 Individual and others3 .............................................................. 138,199 154,173 177,534' 154,173 158,999 165,687 171,886 177,534' 60 1- to 4-family ............................................................................ 72,115 82,567 96,047' 82,567 85,354 89,345 92,565 96,047' 61 Multifamily ................................................................................ 20,538 21,393 23,439 21,393 21,637 22,094 22,920 23,439 62 Commerical ............................................................................... 21,820 22,837 24,979' 22,837 23,230 23,770 24,442 24,979' 63 Farm ............................................................................................ 23,726 27,376 33,069' 27,376 28,778 30,478 31,959 33,069' 1. Includes loans held by nondeposit trust companies but not bank trust de­ Note. Based on data from various institutional and government sources, with partments. some quarters estimated in part by the Federal Reserve in conjunction with the 2. Outstanding principal balances of mortgages backing securities insured or Federal Home Loan Bank Board and the Department of Commerce. Separation guaranteed by the agency indicated. of nonfarm mortgage debt by type of property, if not reported directly, and in­ 3. Other holders include mortgage companies, real estate investment trusts, terpolations and extrapolations when required, are estimated mainly by the Federal state and local credit agencies, state and local retirement funds, noninsured pension Reserve. Multifamily debt refers to loans on structures of five or more units. funds, credit unions, and U.S. agencies for which amounts are small or separate data are not readily available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Financial Statistics □ April 1980 1.57 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change Millions of dollars 1979 1980 Holder, and type of credit 1977 1978 1979 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Amounts outstanding (end of period) 1 Total ....................................................... 230,829 275,629 311,122 299,813 303,902 305,217 307,641 311,122 308,984 308,268 By major holder 2 Commercial banks ....................................... 112,373 136,189 149,604 147,312 148,657 149,152 149,057 149,604 148,868 148,249 3 Finance companies ....................................... 44,868 54,298 68,318 63,362 64,822 65,692 67,164 68,318 68,724 69,623 4 Credit unions ................................................. 37,605 45,939 48,186 48,631 49,214 48,770 48,673 48,186 47,270 46,707 5 Retailers2 ........................................................ 23,490 24,876 27,916 24,114 24,446 24,860 25,732 27,916 26,985 26,309 6 Savings and loans ........................................ 7,354 8,394 10,361 9,760 9,972 10,073 10,241 10,361 10,320 10,543 7 Gasoline companies .................................... 2,963 3,240 4,316 4,048 4,244 4,174 4,281 4,316 4,433 4,467 8 Mutual savings banks ................................. 2,176 2,693 2,421 2,586 2,547 2,496 2,493 2,421 2,384 2,370 By major type of credit 9 Automobile .................................................... 82,911 102,468 115,022 113,351 114,765 114,876 115,121 115,022 114,761 115,007 10 Commercial banks .................................. 49,577 60,564 65,229 65,389 65,813 65,973 65,646 65,229 64,824 64,544 11 Indirect paper ....................................... 27,379 33,850 37,209 36,887 37,267 37,469 37,334 37,209 37,020 36,949 12 Direct loans ........................................... 22,198 26,714 28,020 28,502 28,546 28,504 28,312 28,020 27,804 27,595 13 Credit unions ............................................. 18,099 21,967 23,042 23,255 23,534 23,322 23,275 23,042 22,604 22,335 14 Finance companies .................................. 15,235 19,937 26,751 24,707 25,418 25,581 26,200 26,751 27,333 28,128 15 Revolving ........................................................ 39,274 47,051 55,330 49,270 50,422 50,883 52,060 55,330 54,420 53,522 16 Commercial banks .................................. 18,374 24,434 28,954 26,782 27,446 27,600 27,827 28,954 28,841 28,575 17 Retailers ..................................................... 17,937 19,377 22,060 18,440 18,732 19,109 19,952 22,060 21,146 20,480 18 Gasoline companies ............................... 2,963 3,240 4,316 4,048 4,244 4,174 4,281 4,316 4,433 4,467 19 Mobile home ................................................. 15,141 16,042 17,409 16,972 17,105 17,244 17,349 17,409 17,387 17,476 20 Commercial banks .................................. 9,124 9,553 9,991 9,912 9,940 10,013 10,036 9,991 9,968 9,974 21 Finance companies .................................. 3,077 3,152 3,390 3,231 3,258 3,295 3,321 3,390 3,415 3,428 22 Savings and loans .................................... 2,538 2,848 3,516 3,312 3,384 3,418 3,475 3,516 3,502 3,578 23 Credit unions ............................................. 402 489 512 517 523 518 517 512 502 496 24 Other ................................................................ 93,503 110,068 123,361 120,220 121,610 122,214 123,111 123,361 122,416 122,263 25 Commercial banks .................................. 35,298 41,638 45,430 45,229 45,458 45,566 45,548 45,430 45,235 45,156 26 Finance companies .................................. 26,556 31,209 38,177 35,424 36,146 36,816 37,643 38,177 37,976 38,067 27 Credit unions ............................................. 19,104 23,483 24,632 24,859 25,157 24,930 24,881 24,632 24,164 23,876 28 Retailers ..................................................... 5,553 5,499 5,856 5,674 5,714 5,751 5,780 5,856 5,839 5,829 29 Savings and loans .................................... 4,816 5,546 6,845 6,448 6,588 6,655 6,766 6,845 6,818 6,965 30 Mutual savings banks ............................ 2,176 2,693 2,421 2,586 2,547 2,496 2,493 2,421 2,384 2,370 Net change (during period)3 31 Total ....................................................... 35,278 44,810 35,491 2,446 4,446 2,186 2,407 1,349 1,372 2,386 By major holder 32 Commercial banks ....................................... 18,645 23,813 13,414 866 1,521 771 283 218 433 783 33 Finance companies ....................................... 5,948 9,430 14,020 549 1,773 1,076 1,340 1,087 1,096 1,467 34 Credit unions ................................................. 6,436 8,334 2,247 391 411 -152 -44 -455 -324 -373 35 Retailers2 ......................................................... 2,654 1,386 3,040 332 443 335 477 282 120 53 36 Savings and loans ........................................ 1,111 1,041 1,967 253 207 76 143 165 7 306 37 Gasoline companies .................................... 132 276 1,076 116 127 122 218 115 50 166 38 Mutual savings banks ................................. 352 530 -273 -61 -36 -42 -10 -63 -10 -16 By major type of credit 39 Automobile .................................................... 15,204 19,557 12,554 594 1,823 487 533 682 972 881 40 Commercial banks .................................. 9,956 10,987 4,665 172 762 203 -76 122 83 22 41 Indirect paper ....................................... 5,307 6,471 3,359 188 542 237 40 260 72 48 42 Direct loans ........................................... 4,649 4,516 1,306 -16 220 -34 -116 -138 11 -26 43 Credit unions ............................................ 2,861 3,868 1,075 177 218 -79 -24 -213 -134 -177 44 Finance companies .................................. 2,387 4,702 6,814 245 843 363 633 773 1,023 1,036 45 Revolving ........................................................ 6,248 7,776 8,279 787 1,057 664 799 432 289 575 46 Commercial banks .................................. 4,015 6,060 4,520 365 546 253 136 24 109 383 47 Retailers ..................................................... 2,101 1,440 2,683 306 384 289 445 293 130 26 48 Gasoline companies ............................... 132 276 1,076 116 127 122 218 115 50 166 49 Mobile home ................................................. 565 897 1,366 182 89 150 103 108 120 198 50 Commercial banks .................................. 387 426 437 59 10 105 33 -22 68 57 51 Finance companies .................................. -189 74 238 13 17 27 19 84 48 32 52 Savings and loans .................................... 297 310 668 106 57 21 52 51 10 115 53 Credit unions ............................................ 70 87 23 4 5 -3 -1 -5 -6 -6 54 Other ............................................................... 13,261 16,580 13,292 883 1,477 885 972 127 -9 732 55 Commercial banks .................................. 4,287 6,340 3,792 270 203 210 190 94 173 321 56 Finance companies .................................. 3,750 4,654 6,968 291 913 686 688 230 25 399 57 Credit unions ............................................. 3,505 4,379 1,149 210 188 -70 -19 -237 -184 -190 58 Retailers ..................................................... 553 -54 357 26 59 46 32 -11 -10 27 59 Savings and loans .................................... 814 731 1,299 147 150 55 91 114 -3 191 60 Mutual savings banks ............................ 352 530 -273 -61 -36 -42 -10 -63 -10 -16 1. The Board’s series cover most short- and intermediate-term credit extended Note. Total consumer noninstallment credit outstanding—credit scheduled to to individuals through regular business channels, usually to finance the purchase be repaid in a lump sum, including single-payment loans, charge accounts, and of consumer goods and services or to refinance debts incurred for such purposes, service credit—amounted to $70.9 billion at the end of 1979, $64.7 billion at the and scheduled to be repaid (or with the option of repayment) in two or more end of 1978, $58.6 billion at the end of 1977, and $55.4 billion at the end of 1976. installments. 2. Includes auto dealers and excludes 30-day charge credit held by travel and entertainment companies. 3. Net change equals extensions minus liquidations (repayments, charge-offs, and other credit); 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 1980 Holder, and type of credit 1977 1978 1979 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Extensions* 1 Total .......................................................................... 254,071 298,351 322,558 27,583 28,634 27,695 26,464 25,671 26,702 27,146 By major holder 2 Commercial banks ............................................................. 117,896 142,720 149,599 12,700 13,172 12,718 11,738 11,370 12,126 12,004 3 Finance companies ............................................................ 41,989 50,505 61,518 5,133 5,489 5,642 5,105 5,249 5,540 5,709 4 Credit unions ....................................................................... 34,028 40,023 36,778 3,361 3,363 2,942 2,808 2,396 2,527 2,495 5 Retailers2 .............................................................................. 39,133 41,619 46,092 3,921 4,082 3,930 4,161 4,054 4,010 4,042 6 Savings and loans .............................................................. 4,485 5,050 7,333 728 678 571 606 632 485 775 7 Gasoline companies .......................................................... 14,617 16,125 19,607 1,640 1,734 1,773 1,913 1,895 1,889 2,004 8 Mutual savings banks ....................................................... 1,923 2,309 1,631 100 116 119 133 75 125 117 By major type of credit 9 Automobile .......................................................................... 75,641 88,987 91,847 7,667 8,430 7,676 7,066 7,131 7,780 7,659 10 Commercial banks ........................................................ 46,363 53,028 50,596 4,085 4,544 4,185 3,640 3,808 4,026 3,936 11 Indirect paper ............................................................. 25,149 29,336 28,183 2,276 2,569 2,376 2,009 2,181 2,154 2,096 12 Direct loans ................................................................. 21,214 23,692 22,413 1,809 1,975 1,809 1,631 1,627 1,872 1,840 13 Credit unions ................................................................... 16,616 19,486 18,301 1,661 1,655 1,434 1,399 1,223 1,348 1,338 14 Finance companies ........................................................ 12,662 16,473 22,950 1,921 2,231 2,057 2,027 2,100 2,406 2,385 15 Revolving .............................................................................. 86,756 104,587 120,728 10,371 10,699 10,424 10,613 10,196 10,475 10,458 16 Commercial banks ........................................................ 38,256 51,531 60,406 5,280 5,398 5,165 5,014 4,683 5,030 4,920 17 Retailers ........................................................................... 33,883 36,931 40,715 3,451 3,567 3,486 3,686 3,618 3,556 3,534 18 Gasoline companies ..................................................... 14,617 16,125 19,607 1,640 1,734 1,773 1,913 1,895 1,889 2,004 19 Mobile home ....................................................................... 5,425 6,067 6,395 655 531 582 515 490 558 597 20 Commercial banks ........................................................ 3,466 3,704 3,720 362 294 374 294 245 351 304 21 Finance companies ........................................................ 643 886 797 67 69 83 69 97 87 80 22 Savings and loans .......................................................... 1,120 1,239 1,687 206 148 114 139 140 112 207 23 Credit unions ................................................................... 196 238 191 20 20 11 13 8 8 6 24 Other ...................................................................................... 86,249 98,710 103,588 8,890 8,974 9,013 8,270 7,854 7,889 8,432 25 Commercial banks ........................................................ 29,811 34,457 34,877 2,973 2,936 2,994 2,790 2,634 2,719 2,844 26 Finance companies ........................................................ 28,684 33,146 37,771 3,145 3,189 3,502 3,009 3,052 3,047 3,244 27 Credit unions ................................................................... 17,216 20,299 18,286 1,680 1,688 1,497 1,396 1,165 1,171 1,151 28 Retailers ............................................................................ 5,250 4,688 5,377 470 515 444 475 436 454 508 29 Savings and loans .......................................................... 3,365 3,811 5,646 522 530 457 467 492 373 568 30 Mutual savings banks .................................................. 1,923 2,309 1,631 100 116 119 133 75 125 117 Liquidations1 31 Total .......................................................................... 218,793 253,541 287,067 25,137 24,188 25,509 24,057 24,322 25,330 24,760 By major holder 32 Commercial banks ............................................................. 99,251 118,907 136,185 11,834 11,651 11,947 11,455 11,152 11,693 11,221 33 Finance companies ............................................................. 36,041 41,075 47,498 4,584 3,716 4,566 3,765 4,162 4,444 4,242 34 Credit unions ....................................................................... 27,592 31,689 34,531 2,970 2,952 3,094 2,852 2,851 2,851 2,868 35 Retailers2 .............................................................................. 36,479 40,233 43,052 3,589 3,639 3,595 3,684 3,772 3,890 3,989 36 Savings and loans .............................................................. 3,374 4,009 5,366 475 471 495 463 467 478 469 37 Gasoline companies .......................................................... 14,485 15,849 18,531 1,524 1,607 1,651 1,695 1,780 1,839 1,838 38 Mutual savings banks ....................................................... 1,571 1,779 1,904 161 152 161 143 138 135 133 By major type of credit 39 Automobile .......................................................................... 60,437 69,430 79,293 7,073 6,607 7,189 6,533 6,449 6,808 6,778 40 Commercial banks ........................................................ 36,407 42,041 45,931 3,913 3,782 3,982 3,716 3,686 3,943 3,914 41 Indirect paper ............................................................. 19,842 22,865 24,824 2,088 2,027 2,139 1,969 1,921 2,082 2,048 42 Direct loans ................................................................. 16,565 19,176 21,107 1,825 1,755 1,843 1,747 1,765 1,861 1,866 43 Credit unions ................................................................... 13,755 15,618 17,226 1,484 1,437 1,513 1,423 1,436 1,482 1,515 44 Finance companies ........................................................ 10,275 11,771 16,136 1,676 1,388 1,694 1,394 1,327 1,383 1,349 45 Revolving .............................................................................. 80,508 96,811 112,449 9,584 9,642 9,760 9,814 9,764 10,186 9,883 46 Commercial banks ........................................................ 34,241 45,471 55,886 4,915 4,852 4,912 4,878 4,659 4,921 4,537 47 Retailers ............................................................................ 31,782 35,491 38,032 3,145 3,183 3,197 3,241 3,325 3,426 3,508 48 Gasoline companies ..................................................... 14,485 15,849 18,531 1,524 1,607 1,651 1,695 1,780 1,839 1,838 49 Mobile home ....................................................................... 4,860 5,170 5,029 473 442 432 412 382 438 399 50 Commercial banks ........................................................ 3,079 3,278 3,283 303 284 269 261 267 283 247 51 Finance companies ........................................................ 832 812 559 54 52 56 50 13 39 48 52 Savings and loans .......................................................... 823 929 1,019 100 91 93 87 89 102 92 53 Credit unions ................................................................... 126 151 168 16 15 14 14 13 14 12 54 Other ...................................................................................... 72,988 82,130 90,296 8,007 7,497 8,128 7,298 7,727 7,898 7,700 55 Commercial banks ........................................................ 25,524 28,117 31,085 2,703 2,733 2,784 2,600 2,540 2,546 2,523 56 Finance companies ........................................................ 24,934 28,492 30,803 2,854 2,276 2,816 2,321 2,822 3,022 2,845 57 Credit unions ................................................................... 13,711 15,920 17,137 1,470 1,500 1,567 1,415 1,402 1,355 1,341 58 Retailers ............................................................................ 4,697 4,742 5,020 444 456 398 443 447 464 481 59 Savings and loans .......................................................... 2,551 3,080 4,347 375 380 402 376 378 376 377 60 Mutual savings banks .................................................. 1,571 1,779 1,904 161 152 161 143 138 135 133 1. Monthly figures are seasonally adjusted. 2. Includes auto dealers and excludes 30-day charge credit held by travel and entertainment companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Financial Statistics □ April 1980 1.59 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1976 1977 1978 1979 Transaction category, sector 1973 1974 1975 1976 1977 1978 H2 HI H2 HI H2 HI Nonfinancial sectors 1Total funds raised .................................................... 203.1 191.3 210.8 271.9 338.5 400.3 274.9 298.1 378.9 384.5 416.1 384.3 2 Excluding equities .............................................................. 195.4 187.4 200.7 261.1 335.4 398.2 266.8 296.9 373.8 387.1 409.3 381.6 By sector and instrument 3 U.S. government ............................................................... 8.3 11.8 85.4 69.0 56.8 53.7 61.4 46.1 67.4 61.4 46.0 27.3 4 Treasury securities ........................................................ 7.9 12.0 85.8 69.1 57.6 55.1 61.8 46.7 68.6 62.3 47.9 29.6 5 Agency issues and mortgages ................................... .4 -.2 -.4 -.1 -.9 -1.4 -.3 -.6 -1.2 -.9 -1.9 -2.3 6 All other nonfinancial sectors ........................................ 194.9 179.5 125.4 202.9 281.8 346.6 213.4 252.0 311.5 323.1 370.2 357.0 7 Corporate equities ........................................................ 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 ........................................................... 187.2 175.6 115.3 192.0 278.6 344.5 205.4 250.8 306.4 325.7 363.4 354.3 9 Private domestic nonfinancial sectors ..................... 188.8 164.1 112.1 182.0 267.9 314.4 192.3 241.5 294.2 302.5 326.3 340.2 10 Corporate equities .................................................... 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 ....................................................... 180.9 160.0 102.1 171.5 265.1 311.8 184.6 241.0 289.3 304.3 319.2 337.4 12 Debt capital instruments ................................... 105.1 98.0 98.4 123.5 175.6 196.6 126.5 158.7 192.5 188.0 205.1 202.6 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 17.4 14 Corporate bonds ............................................... 9.2 19.7 27.2 22.8 21.0 20.1 22.9 16.6 25.4 20.6 19.6 23.3 Mortgages 15 Home .................................................................... 46.4 34.8 39.5 63.7 96.4 104.5 70.0 89.7 103.1 99.8 109.2 111.0 16 Multifamily residential ................................... 10.4 6.9 * 1.8 7.4 10.2 3.1 6.4 8.4 9.3 11.2 8.1 17 Commercial ........................................................ 18.9 15.1 11.0 13.4 18.4 23.3 12.5 14.8 21.9 21.2 25.4 25.7 18 Farm ..................................................................... 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 96.7 116.3 114.1 134.8 20 Consumer credit ............................................... 26.0 9.9 9.7 25.6 40.6 50.6 27.6 36.6 44.5 50.1 51.0 48.2 21 Bank loans n.e.c................................................. 37.1 31.7 -12.3 4.0 27.0 37.3 10.8 27.3 26.7 43.1 31.4 46.9 22 Open market paper ......................................... 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 28.9 24 By borrowing sector ................................................. 188.8 164.1 112.1 182.0 267.9 314.4 192.3 241.5 294.2 302.5 326.3 340.2 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 14.4 26 Households .............................................................. 80.1 51.2 49.5 90.7 139.9 162.6 98.8 129.4 150.4 156.1 169.1 167.5 27 Farm .......................................................................... 9.6 8.0 8.8 10.9 14.7 18.1 11.9 15.7 13.8 15.3 20.8 23.6 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 Corporate ................................................................. 73.0 81.7 38.1 59.8 80.3 94.5 64.1 67.3 92.4 93.7 95.8 119.4 30 Foreign .............................................................................. 6.1 15.4 13.3 20.8 13.9 32.3 21.1 10.5 17.3 20.6 43.9 16.9 31 Corporate equities .................................................... -.2 -.2 .2 .3 .4 -.5 .3 .6 .2 -.8 -.2 -.1 32 Debt instruments ....................................................... 6.3 15.7 13.2 20.5 13.5 32.8 20.8 9.9 17.1 21.4 44.1 16.9 33 Bonds ........................................................................ 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 Bank loans n.e.c...................................................... 2.7 4.7 3.9 6.8 3.1 18.3 5.1 -.4 6.5 9.3 27.3 4.3 35 Open market paper .............................................. .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 37 Total funds raised .................................. 44.8 39.2 12.7 24.1 54.0 81.4 28.5 47.7 60.3 80.7 82.1 87.8 By instrument 38 U.S. government related ..................... 19.9 23.1 13.5 18.6 26.3 41.4 20.7 22.6 29.9 38.5 44.3 45.9 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 21.7 40 Mortgage pool securities ................ 3.6 5.8 10.3 15.7 20.5 18.3 17.2 17.9 23.1 16.6 20.1 24.2 41 Loans from U.S. government ....... 0 .7 .9 -.4 * -1.2 0 -.7 -2.3 0 0 0 0 42 Private financial sectors ...................... 24.9 16.2 -.8 5.5 27.7 40.0 7.8 25.1 30.4 42.2 37.8 41.9 43 Corporate equities ............................ 1.5 .3 .6 1.0 .9 1.7 2.3 .9 .8 2.2 1.1 2.5 44 Debt instruments ............................... 23.4 15.9 -1.4 4.4 26.9 38.3 5.6 24.2 29.6 40.0 36.7 39.3 45 Corporate bonds ............................ 3.5 2.1 2.9 5.8 10.1 7.5 5.1 10.2 10.1 8.5 6.4 8.9 46 Mortgages ........................................ -1.2 -1.3 2.3 2.1 3.1 .9 2.8 3.1 3.0 2.1 -.3 -.4 47 Bank loans n.e.c.............................. 9.0 4.6 -3.7 -3.7 -.3 2.8 -5.3 -1.8 1.2 2.5 3.1 -1.3 48 Open market paper and RPs .... 4.9 3.8 2.2 9.6 14.6 5.0 9.8 9.5 13.5 15.7 24.5 49 Loans from FHLBs ...................... 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 50 Sponsored credit agencies ................... 16.3 17.3 3.2 2.6 5.8 23.1 3.5 4.7 6.8 21.9 24.3 21.7 51 Mortgage pools ...................................... 3.6 5.8 10.3 15.7 20.5 18.3 17.2 17.9 23.1 16.6 20.1 24.2 52 Private financial sectors ...................... 24.9 16.2 -.8 5.5 27.7 40.0 7.8 25.1 30.4 42.2 37.8 41.9 53 Commercial banks ............................ 1.2 1.2 1.2 2.3 1.1 1.3 2.1 .8 1.5 1.5 1.1 1.1 54 Bank affiliates ..................................... 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 9.8 56 Other insurance companies ............ .5 .9 1.0 .9 .9 1.1 .9 .9 1.0 1.0 1.1 1.0 57 Finance companies ............................ 9.5 6.0 .5 6.4 17.6 18.6 7.2 16.7 18.5 18.9 18.2 24.4 58 REITs ................................................... 6.5 .6 -1.4 -2.4 -2.2 -1.0 -2.7 -2.4 -2.0 -1.0 -1.0 -.5 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 248.0 230.5 223.5 296.0 392.5 481.7 303.4 345.8 439.2 465.2 498.3 472.1 61 Investment company shares ....... -1.2 -.7 -.1 -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 4.7 9.9 2.6 7.2 .1 9.4 5.5 63 Debt instruments ............................ 238.8 226.4 212.8 284.1 388.5 478.0 293.1 343.8 433.3 465.5 490.4 466.9 64 U.S. government securities .... 28.3 34.3 98.2 88.1 84.3 95.2 82.9 71.2 97.4 100.0 90.4 73.4 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 17.4 66 Corporate and foreign bonds . 13.6 23.9 36.4 37.2 36.1 31.6 37.7 31.2 41.1 34.2 29.1 35.7 67 Mortgages ..................................... 79.9 60.5 57.2 87.1 134.0 149.0 95.5 122.9 145.1 141.6 156.4 161.4 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 48.2 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 49.8 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 18.23 18.5 31.8 34.6 42.5 39.8 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 Transaction category, or sector 1973 1974 1975 1976 1977 1978 H2 HI H2 HI H2 HI 1 Total funds advanced in credit markets to nonfinancial sectors ....................................................................... 195.4 187.4 200.7 261.1 355.4 398.2 266.8 296.9 373.8 387.1 409.3 381.6 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 45.1 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 -27.6 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 33.7 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 31.2 Total 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 24.3 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 50.6 9 Monetary authorities ................................................................. 9.2 6.2 8.5 9.8 7.1 7.0 6.2 10.2 4.0 13.4 .5 -.8 10 Foreign ........................................................................................... .6 11.2 6.1 15.2 39.4 37.7 20.0 28.3 50.4 30.6 44.9 -28.9 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 45.9 Private domestic funds advanced 12 Total net advances ..................................................................... 183.6 156.8 169.7 225.4 276.5 330.0 227.2 253.5 299.6 322.8 337.1 382.4 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 46.4 100.9 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 17.4 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 26.9 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 85.3 17 Other mortgages and loans ................................................. 98.8 76.8 17.9 63.3 107.3 152.2 71.6 94.9 119.7 141.1 163.3 159.7 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 ............................................................................. 161.3 125.5 122.5 190.3 255.9 296.9 202.2 249.1 265.0 301.7 292.0 320.6 20 Commercial banking ............................................................ 84.6 66.6 29.4 59.6 87.6 128.7 68.3 84.6 90.7 132.5 125.0 130.3 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 57.8 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 79.9 23 Other finance ........................................................................... 17.9 4.8 -1.0 10.0 18.4 18.7 15.5 18.0 21.2 16.6 20.8 52.6 24 Source of funds ........................................................................... 161.3 125.5 122.5 190.3 255.9 296.9 202.2 249.1 265.0 301.7 292.0 320.6 25 Private domestic deposits ................................................... 97.3 67.5 92.0 124.6 141.2 142.5 132.4 138.6 143.8 138.3 146.7 118.1 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 39.3 27 Other sources .......................................................................... 40.6 42.1 32.0 61.3 87.8 116.0 64.2 86.2 91.7 123.5 108.6 163.2 28 Foreign funds ....................................................................... 3.0 10.3 -8.7 -4.6 1.2 6.3 -2.8 1.6 .8 5.7 6.9 53.1 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 60.4 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 44.2 Private domestic nonfinancial investors 32 Direct lending in credit markets ........................................... 45.7 47.2 45.8 39.5 47.5 71.4 30.6 28.6 64.1 61.1 81.7 101.1 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 64.3 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 -.8 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 2.2 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 10.4 37 Other .......................................................................................... 9.7 8.0 6.2 11.8 15.7 18.7 13.5 9.2 19.9 17.5 20.0 25.1 38 Deposits and currency .............................................................. 101.2 73.8 98.1 131.9 149.5 151.8 141.0 144.5 154.5 148.7 154.8 128.1 39 Security RPs ............................................................................. 11.0 -2.2 .2 2.3 2.2 7.5 3.2 4.3 .2 9.8 5.1 18.5 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 73.7 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 -40.6 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 58.7 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 5.7 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 -4.2 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 .................................................................... 146.9 121.0 143.9 171.4 197.0 223.2 171.6 173.1 218.6 209.8 236.6 229.2 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 11.8 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 83.9 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 24.2 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 5.2 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 5.5 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 14.5 56 Other net purchases .................................................................. -3.9 -1.7 1.1 -.4 -3.4 -3.8 -1.5 -4.7 -2.2 -.8 -6.8 -9.3 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, and net 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 includes issues of federally related mortgage pool securities. Included below in lines mortgages. 3, 13, 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. Also sum 46. Lines 32 plus 38, or line 12 less line 27 plus 45. of lines 27, 32, 39, and 44. 47. Line 2/line 1. 17. Includes farm and commercial mortgages. 48. Line 19/line J2. 25. Sum of lines 39 ^nd 44. 49. Sum of lines 10 and 28. 26. Excludes equity issues and investment company shares. Includes line 18. 50. 52. Includes issues by financial institutions. 28. Foreign deposits at commercial banks, bank borrowings from foreign branches, Note. Full statements for sectors and transaction types quarterly, and annually and liabilities of foreign banking agencies to foreign affiliates. for flows and for amounts outstanding, may be obtained from Flow of Funds Section. Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics □ April 1980 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1980 Measure 1977 1978 1979 Aug. Sept. Dec. Jan. Feb.' Mar. 1 Industrial production 138.2 151.2 Market groupings 2 Products, total ......... 137.9 144.8 149.7 148.7 149.9 149.6 149.4 149.7 150.2 150.3 149.1 3 Final, total .......... 135.9 142.2 147.0 145.6 147.2 146.8 146.6 147.0' 147.3 147.9 147.2 4 Consumer 145.3 149.1 150.5 148.2 149.7 149.7 148.9 148.5' 148.5 149.3 148.1 5 Equipment 123.0 132.8 142.2 141.8 143.9 142.9 143.6 145.0' 145.7 146.0 145.9 6 Intermediate ..................................... 145.1 154.1 160.0 160.6 159.8 159.8 159.8 159.9' 160.7 159.2 156.1 7 Materials ............................................... 138.6 148.3 156.0 156.0 156.3 156.3 156.4 156.2' 156.7 155.5 154.5 Industry groupings 8 Manufacturing ....................................... 138.4 153.2 152.8' 153.3 152.9 151.6 Capacity utilization (percent)12 9 Manufacturing ....................................... 81.9 84.4 85.7 84.9 85.3 84.9 84.6 84.3' 84.3 83.9 83.0 10 Industrial materials industries ............ 82.7 85.6 85.6 86.8 86.7 86.6 86.4 86.0 86.0 85.2 84.4 11 Construction contracts3 ........................ 174.3 164.0 185.0 171.0 156.0 183.0 190.0 171.0 n.a. 12 Nonagricultural employment, total4 .... 125.3 131.4 136.0 136.4 136.5 136.8 136.9 137.2 137.8' 138.0' 137.8 13 Goods-producing, total .................... 104.5 109.8 114.0 114.1 114.1 114.0 113.8 114.4 114.9 114.6' 113.9 14 Manufacturing, total ..................... 101.2 105.3 107.9 107.8 107.7 107.5 107.1 107.4 107.4' 107.4' 107.2 15 Manufacturing, production-worker 98.8 102.8 104.9 104.5 104.5 104.1 103.6 103.9 103.8' 103.6' 103.4 16 Service-producing ............................. 136.7 143.2 148.1 148.7 148.8 149.3 149.6 149.7 150.3' 150.8' 150.8 17 Personal income, total5 ........................ 244.4 274.1 306.9 310.6 312.8 316.2 320.1' 323.7' 326.4' 327.5' n.a. 18 Wages and salary disbursements ..... 230.2 258.1 287.1 289.2 291.9 294.1 297.4 300.1' 302.0' 303.9' n.a. 19 Manufacturing ............................... 198.3 222.4 246.8 246.3 248.7 250.6 251.7 254.7 256.2' 257.9' n.a. 20 Disposable personal income ................ 194.8 217.7 242.4 244.8 251.3' n.a. n.a. n.a. 21 Retail sales6 .......................................... 229.8 253.8 280.9 285.8 288.9 292.0 294.8 303.6' 298.8' 295.1 Prices1 22 Consumer .............................................. 181.5 195.4 221.1 223.4 225.4 227.5 229.9 233.2 236.4 n.a. 23 Producer finished goods ...................... 180.6 194.6 217.3 220.7 224.2 225.9 227.8 232.1 235.4 238.2 1. The industrial production and capacity utilization series have been revised. 6. Based on Bureau of Census data published in Survey of Current Business For a description of the changes see the August 1979 Bulletin, pp. 603-07. (U.S. Department of Commerce). 2. Ratios of indexes of production to indexes of capacity. Based on data from 7. Data without seasonal adjustment, as published in Monthly Labor Review Federal Reserve, McGraw-Hill Economics Department, and Department of Com­ (U.S. Department of Labor). Seasonally adjusted data for changes in the price merce. indexes may be obtained from the Bureau of Labor Statistics, U.S. Department 3. Index of dollar value of total construction contracts, including residential, of Labor. nonresidential, and heavy engineering, from McGraw-Hill Information Systems Company, F. W. Dodge Division. Note: Basic data (not index numbers) for series mentioned in notes 4, 5, and 4. Based on data in Employment and Earnings (U.S. Department of Labor). 6, and indexes for series mentioned in notes 3 and 7 may also be found in the Series covers employees only, excluding personnel in the Armed Forces. Survey of Current Business (U.S. Department of Commerce). 5. Based on data in Survey of Current Business (U.S. Department of Commerce). Figures for industrial production for the last two months are preliminary and Series for disposable income is quarterly. estimated, respectively. 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1979 1980 1979 1980 1979 1980 Series Q2 Q3 Q4' Ql Q2 Q3 Q4 Ql Q2 Q3 Q4' Ql Output (167 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Manufacturing ................................................... 153.1 152.9 153.0 152.6 178.2 179.5 180.8 182.3 85.9 84.6 84.6 83.7 2 Primary processing .................................................... 161.9 161.8 161.8 159.5 184.2 185.7 187.2 188.7 87.9 86.5 86.4 84.5 3 Advanced processing ............................................... 148.5 148.1 148.2 148.9 175.0 176.2 177.4 178.8 84.8 83.5 83.6 83.3 4 Materials ............................................................ 155.6 156.3 156.3 155.6 178.1 179.5 181.0 182.5 87.3 86.3 86.3 85.2 5 Durable goods ........................................................... 157.7 156.1 156.3 154.5 183.0 184.5 186.0 187.7 86.2 83.9 84.0 82.3 6 Metal materials ..................................................... 124.3 119.5 119.5 140.3 140.7 141.1 88.5 84.7 84.7 7 Nondurable goods ..................................................... 173.4 178.2 178.3 178.9 193.5 195.3 197.3 199.1 89.6 90.3 90.4 89.8 8 Textile, paper, and chemical ............................ 181.3 187.0 186.9 186.5 201.3 203.2 205.3 207.3 90.0 91.1 91.0 90.0 9 Textile .................................................................. 119.6 123.7 123.7 137.3 137.7 138.1 87.1 89 6 89.6 10 Paper .................................................................... 140.7 148.4 148.4 149.6 150.6 151.6 94.0 97.9 97.9 11 Chemical .............................................................. 224.8 230.4 230.2 250.3 253.3 256.3 89.8 89.8 89.8 12 Energy ........................................................................... 128.1 129.9 129.1 129.3 147.5 148.3 149.2 149.8 86.9 86.8 86.6 86.3 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 1980 Category 1977 1978 1979 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Household Survey Data 1 Noninstitutional population1 ......................... 158,559 161,058 163,620 164,106 164,468 164,682 164,898 165,101 165,298 165,506 2 Labor force (including Armed Forces)1 ... 99,534 102,537 104,996 105,586 105,688 105,744 106,088 106,310 106,346 106,184 3 Civilian labor force ..................................... 97,401 100,420 102,908 103,494 103,595 103,652 103,999 104,229 104,260 104,094 Employment 4 Nonagricultural industries2 .................. 87,302 91,031 93,648 94,140 94,180 94,223 94,553 94,534 94,626 94,298 5 Agriculture ................................................. 3,244 3,342 3,297 3,364 3,294 3,385 3,359 3,270 3,326 3,358 Unemployment 6 Number ....................................................... 6,855 6,047 5,963 5,990 6,121 6,044 6,087 6,425 6,307 6,438 7 Rate (percent of civilian labor force) 7.0 6.0 5.8 5.8 5.9 5.8 5.9 6.2 6.0 6.2 8 Not in labor force ............................................ 59,025 58,521 58,623 58,519 58,780 59,937 58,810 58,791 58,951 59,322 Establishment Survey Data 9 Nonagricultural payroll employment3 ...... 82,423 86,446 89,497 89,803 89,982 90,100 90,241 90,652' 90,774' 90,634 10 Manufacturing .................................................... 19,682 20.476 20,979 20,949 20,899 20,836 20,881 20,890' 20,889' 20,848 11 Mining ................................................................... 813 851 958 973 979 983 991 1,000' 1,000' 1,006 12 Contract construction ..................................... 3,851 4,271 4,642 4,671 4,694 4,714 4,783 4,893' 4,830' 4,695 13 Transportation and public utilities ............. 4,713 4,927 5,154 5,180 5,218 5,229 5,223 5,212' 5,191' 5,197 14 Trade .................................................................... 18,516 19,499 20,140 20,169 20,243 20,308 20,254 20,428' 20,530' 20,499 15 Finance ................................................................. 4,467 4,727 4,964 4,997 5,018 5,039 5,056 5,081' 5,085' 5,091 16 Service ................................................................... 15,303 16,220 17,047 17,191 17,257 17,298 17,357 17,442' 17,505' 17,544 17 Government ....................................................... 15,079 15.476 15,613 15,673 15,674 15,693 15,696 15,706' 15,744' 15,754 1. Persons 16 years of age and over. Monthly figures, which are based on sample 3. Data include all full- and part-time employees who worked during, or data, relate to the calendar week that contains the 12th day; annual data are received pay for, the pay period that includes the 12th day of the month, and averages of monthly figures. By definition, seasonality does not exist in population exclude proprietors, self-employed persons, domestic servants, unpaid family figures. Based on data from Employment and Earnings (U.S. Dept, of Labor). workers, and members of the Armed Forces. Data are adjusted to the February 2. Includes self-employed, unpaid family, and domestic service workers. 1977 benchmark. Based on data from Employment and Earnings (U.S. Dept, of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics □ April 1980 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value' Monthly data are seasonally adjusted. Grouping 1 p 9 r 6 o 7 ­ A 1 v 97 e 9 r­ 1979 1980 por­ age tion Jan. Feb. June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Index (1967 = 100) Major Market 1 Total index .......................................................... 100.00 152.2 151.5 152.0 152.6 152.8 151.6 152.4 152.2 152.1 152.2 152.7 152.4 151.2 2 Products ..................................................... 60.71 149.7 149.2 149.9 150.2 149.7 148.7 149.9 149.6 149.4 149.7 150.2 150.3 149.1 3 Final products ........................................ 47.82 147.0 146.1 146.8 147.6 147.1 145.6 147.2 146.8 146.6 147.0 147.3 147.9 147.2 27.68 150.5 150.6 151.5 151.8 150.8 148.2 149.7 149.7 148.9 148.5 148.5 149.3 148.1 5 Equipment ......................................... 20.14 142.2 139.9 140.4 141.9 142.1 141.8 143.9 142.9 143.6 145.0 145.7 146.0 145.9 6 Intermediate products ........................... 12.89 160.0 160.8 161.4 159.5 159.4 160.6 159.8 159.8 159.8 159.9 160.7 159.2 156.1 7 Materials .................................................... 39.29 156.0 155.0 155.2 156.5 157.6 156.0 156.3 156.3 156.4 156.2 156.7 155.5 154.5 Consumer goods 8 Durable consumer goods .......................... 7.89 155.5 160.4 161.1 158.6 157.2 147.5 151.8 152.6 149.2 146.6 142.4 145.0 142.9 9 Automotive products ............................. 2.83 167.8 181.4 179.3 175.9 170.3 147.3 157.6 159.2 150.6 141.8 131.8 143.0 141.5 10 Autos and utility vehicles ................. 2.03 154.3 173.2 170.3 167.4 155.6 125.1 139.7 142.4 131.0 121.4 108.7 124.9 123.0 11 Autos ....................................................... 1.90 136.7 145.8 144.9 148.0 141.8 118.5 128.0 129.0 118.3 110.2 98.0 116.8 114.9 12 Auto parts and allied goods ................ 80 201.7 202.2 202.2 197.5 207.8 203.7 203.0 202.1 200.3 193.6 190.3 189.0 188.5 13 Home goods .................................................. 5.06 148.7 148.6 150.9 148.8 149.8 147.7 148.5 148.8 148.4 149.3 148.4 146.2 143.7 14 Appliances, A/C, and TV..................... 1.40 127.5 124.0 129.8 129.3 129.7 121.2 129.6 128.0 129.7 134.2 128.4 121.8 116.0 15 Appliances and TV ........................ 1.33 129.3 124.8 131.4 131.2 131.6 124.1 132.2 130.2 132.4 136.5 130.0 123.9 16 Carpeting and furniture ........................ 1.07 170.6 170.7 171.8 170.6 171.9 171.7 169.7 169.2 169.1 168.8 171.2 169.2 17 Miscellaneous home goods ............... 2.59 151.2 152.8 153.7 150.5 151.6 152.1 150.0 151.7 150.0 149.4 149.9 149.8 149.6 19.79 148.4 146.7 147.7 149.1 148.2 148.5 148.9 148.6 148.7 149.2 150.9 151.0 150.1 19 Clothing ........................................................... 4.29 129.1 130.1 130.7 130.7 126.9 128.0 129.0 127.7 129.1 129.1 129.0 20 Consumer staples .......................................... 15.50 153.8 151.3 152.4 154.2 154.1 154.2 154.3 154.3 154.2 154.8 157.0 157.3 156.7 21 Consumer foods and tobacco ............. 8.33 145.4 141.8 142.4 146.2 147.0 145.3 146.5 146.7 145.9 146.8 149.1 149.0 22 Nonfood staples ........................................ 7.17 163.6 162.4 164.0 163.5 162.4 164.6 163.5 163.2 163.8 164.2 166.1 166.8 166.2 23 Consumer chemical products ......... 2.63 205.5 200.3 203.1 205.9 206.1 209.2 207.2 206.4 207.9 207.8 209.7 211.0 24 Consumer paper products .............. 1.92 120.8 119.2 122.7 121.1 119.9 121.2 121.1 121.6 119.3 121.0 123.2 122.9 25 Consumer energy products ............. 2.62 153.0 156.0 155.2 152.0 149.8 151.6 150.8 150.5 152.2 152.2 153.9 154.8 26 Residential utilities ........................ 1.45 166.2 167.7 162.3 158.5 163.5 162.2 164.2 166.7 166.3 Equipment 27 Business ................................................................ 12.63 171.3 168.1 169.0 169.0 171.4 171.5 173.6 172.0 172.5 174.1 175.3 175.8 175.8 28 Industrial ........................................................ 6.77 152.1 151.4 152.5 152.0 151.3 151.7 153.5 151.2 153.3 153.1 157.6 158.5 159.7 29 Building and mining ............................... 1.44 206.1 208.8 207.9 205.3 207.4 210.6 212.0 200.6 204.4 204.4 223.7 230.5 235.2 30 Manufacturing ........................................... 3.85 130.3 127.4 129.1 130.1 130.3 131.1 130.4 130.8 132.5 132.1 132.6 132.1 132.6 31 Power .................................................. 1.47 156.3 157.8 159.1 156.8 151.0 147.7 156.3 156.3 157.6 157.8 158.3 157.0 156.4 32 Commercial transit, farm ..................... 5.86 193.4 187.4 188.1 194.0 194.6 194.4 196.8 195.9 194.6 198.4 195.7 195.8 194.5 33 Commercial ............................................... 3.26 227.8 220.8 221.2 226.4 227.0 230.5 231.4 234.2 232.2 236.9 238.5 238.5 239.4 34 Transit .......................................................... 1.93 152.2 146.8 146.6 155.3 155.2 149.4 156.3 154.9 150.3 153.3 143.7 146.0 141.3 35 Farm ................................................. 67 144.8 142.0 146.9 148.1 151.0 148.3 145.3 128.0 139.5 141.0 137.1 131.6 36 Defense and space ........................................... 7.51 93.2 92.4 92.4 92.3 92.8 92.0 94.0 94.0 95.0 95.9 95.9 95.8 95.7 Intermediate products 37 Construction supplies ............................... 6.42 156.9 159.1 159.3 156.3 156.4 157.3 156.3 156.8 156.7 156.0 156.6 153.7 148.2 38 Business supplies .............................................. 6.47 163.0 162.5 163.6 162.6 162.4 163.8 163.2 162.7 162.9 163.8 164.8 164.7 39 Commercial energy products ................... 1.14 172.2 173.6 173.7 169.4 167.8 170.7 169.8 172.2 174.4 175.7 175.1 174.1 Materials 40 Durable goods materials ............................... 20.35 157.7 158.1 158.0 159.5 160.7 157.7 157.6 157.2 156.0 155.6 156.0 154.6 153.0 41 Durable consumer parts ............................ 4.58 137.0 148.5 146.0 141.8 138.5 129.7 132.2 132.0 126.8 123.8 121.6 121.4 119.6 42 Equipment parts ........................................... 5.44 189.9 182.2 184.4 191.0 192.1 190.7 192.0 192.7 195.1 196.6 200.0 199.5 199.5 43 Durable materials n.e.c........................... 10.34 150.0 149.7 149.4 150.8 154.0 152.7 150.7 149.6 148.3 148.0 148.0 145.6 143.3 44 Basic metal materials ........................ 5.57 124.0 124.4 124.1 126.1 130.5 127.7 124.8 121.4 119.9 117.7 117.7 115.4 45 Nondurable goods materials ..................... 10.47 174.9 171.0 172.4 173.4 174.6 175.8 176.7 177.2 178.3 179.5 180.2 178.8 177.6 46 Textile, paper, and chemical materials . 7.62 182.9 177.5 179.6 181.7 182.8 184.3 185.9 186.1 186.7 187.8 187.9 186.2 185.5 47 Textile materials ....................................... 1.85 121.0 118.3 117.4 122.9 122.2 120.6 124.4 124.3 123.2 123.7 122.9 123.9 48 Paper materials .................................. 1.62 143.2 133.3 137.4 141.1 146.2 146.7 148.1 148.6 148.4 148.2 145.9 141.8 49 Chemical materials .................................. 4.15 226.1 221.2 223.9 223.9 224.1 227.5 228.2 228.4 230.2 232.0 233.4 231.5 Containers, nondurable ......................... 1.70 164.4 167.8 165.8 159.250 163.1 162.9 161.8 166.1 168.1 169.6 173.0 172.5 51 Nondurable materials n.e.c........................ 1.14 136.7 132.5 134.1 139.0 137.5 138.2 136.9 134.4 137.4 138.8 139.1 138.5 52 Energy materials .............................................. 8.48 128.5 127.8 127.1 128.3 129.1 127.7 128.1 128.5 130.1 128.7 129.3 129.1 129.5 53 Primary energy ...................................... 4.65 113.1 111.9 110.6 112.4 112.8 112.0 113.6 114.6 114.9 113.5 113.7 113.4 54 Converted fuel materials ........................... 3.82 147.3 147.0 147.2 147.6 148.8 146.9 145.7 145.3 148.7 147.3 148.3 148.3 Supplementary groups 55 Home goods and clothing .............................. 9.35 139.7 140.1 141.6 140.5 139.3 138.6 139.5 139.1 139.5 140.0 139.5 138.1 135.7 Energy, total ............................................. 12.23 137.8 138.1 137.5 137.2 137.156 136.8 136.8 137.2 139.0 138.1 138.8 138.8 138.8 57 Products .................................................. 3.76 158.8 161.4 160.8 157.3 155.2 157.4 156.5 157.1 159.0 159.3 160.3 160.6 Materials ................................................. 8.48 128.5 127.8 127.1 128.358 129.1 127.7 128.1 128.5 130.1 128.7 129.3 129.1 129.5 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 1967 1979 1980 Grouping pro­ 1979 SIC por­ Aver­ code tion age Jan. Feb. June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Index (1967 = 100) Major Industry 12.05 144.6 143.9 143.0 143.0 143.7 144.9 144.5 146.0 147.7 148.3 148.6 148.9 149.1 6.36 125.3 123.8 120.9 123.9 124.7 126.4 125.8 128.1 130.0 131.6 133.0 132.5 132.6 5.69 166.2 166.2 167.7 164.2 164.8 165.5 165.3 166.1 167.4 167.0 166.0 167.1 167.6 3.88 188.4 189.9 182.4 182.2 183.6 184.1 184.3 185.7 186.0 87.95 153.2 152.5 153.3 153.9 154.1 152.4 153.5 153.2 153.0 152.8 153.3 152.9 151.6 35.97 163.2 160.7 162.0 163.0 164.1 164.3 164.6 164.0 164.5 164.7 165.8 165.3 164.3 51.98 146.3 146.8 147.2 147.6 147.2 144.2 145.9 145.7 145.0 144.5 144.7 144.3 142.9 Mining 8 Metal .................................................. 10 .51 126.7 124.2 125.3 123.2 128.6 126.5 122.1 124.1 132.0 136.8 137.2 135.8 9 Coal ..................................................... 11,12 .69 133.6 115.9 104.5 137.5 137.1 144.1 142.6 144.7 141.9 145.0 141.0 137.3 137.2 10 Oil and gas extraction ................... 13 4.40 121.7 123.0 120.4 119.6 120.4 121.6 121.6 124.2 126.0 127.2 129.3 129.2 130.0 11 Stone and earth minerals ............. 14 .75 137.6 135.9 135.7 137.3 136.4 138.3 137.5 138.2 141.2 141.0 144.3 145.5 Nondurable manufactures 12 Foods ................................................... 20 8.75 147.8 143.9 145.5 149.5 149.4 148.1 148.8 148.6 148.3 148.9 150.7 151.3 13 Tobacco products ............................ 21 .67 117.0 120.6 116.2 118.3 118.9 107.5 115.6 115.6 113.0 116.6 118.7 14 Textile mill products ..................... 22 2.68 143.8 141.6 139.9 114.6 143.0 144.1 146.9 146.0 147.9 147.1 148.7 148.7 15 Apparel products ............................ 23 3.31 130.7 136.5 133.5 132.0 129.7 130.1 131.2 128.5 128.8 128.3 126.9 16 Paper and products ........................ 26 3.21 150.8 144.6 146.6 148.0 154.0 153.9 155.3 154.1 153.3 154.7 155.9 150.8 149.6 17 Printing and publishing ................ 27 4.72 136.9 135.6 138.2 136.9 135.6 137.7 137.1 137.2 136.2 137.8 138.9 140.0 139.7 18 Chemicals and products ............... 28 7.74 210.4 206.5 208.6 207.8 210.5 213.1 212.0 211.4 215.1 216.5 216.8 216.8 19 Petroleum products ........................ 29 1.79 143.7 147.0 146.0 143.9 143.9 143.0 143.1 141.1 142.1 142.6 145.7 145.6 141.3 20 Rubber and plastic products ...... 30 2.24 269.9 267.4 267.5 270.0 278.0 275.7 272.9 274.5 271.3 262.3 262.4 259.8 21 Leather and products ................... 31 .86 71.3 74.8 73.4 70.1 69.7 69.7 70.8 70.1 70.4 71.2 73.2 71.6 Durable manufactures 22 Ordnance, private and government .............................. 19,91 3.64 75.5 74.9 75.8 75.1 74.6 74.9 75.3 75.3 77.0 77.0 76.6 76.6 76.5 23 Lumber and products ................... 24 1.64 136.9 137.3 137.2 136.8 135.2 138.0 138.6 138.7 136.1 131.7 130.6 125.7 24 Furniture and fixtures ................... 25 1.37 161.4 161.7 163.1 159.6 159.5 161.7 162.0 163.3 162.9 161.0 161.0 158.7 25 Clay, glass, stone products ......... 32 2.74 163.2 167.4 166.9 162.7 163.3 161.4 160.6 162.3 162.8 164.4 164.9 162.2 26 Primary metals ................................. 33 6.57 121.2 123.4 120.4 124.3 127.1 121.0 121.7 118.0 117.2 115.4 115.9 112.4 109.6 27 Iron and steel .............................. 331,2 4.21 113.2 113.3 110.8 118.1 119.0 112.0 115.0 108.2 108.0 106.6 107.2 103.9 28 Fabricated metal products .......... 34 5.93 148.5 149.1 150.8 149.3 149.3 147.6 146.5 147.5 146.9 146.1 145.1 145.1 144.4 29 Nonelectrical machinery ............... 35 9.15 163.6 161.2 162.9 164.5 165.3 166.2 165.1 162.3 162.8 162.9 167.1 166.4 165.8 30 Electrical machinery ...................... 36 8.05 175.0 170.9 173.2 175.1 174.4 171.7 176.7 177.3 179.5 181.2 182.0 180.9 180.0 31 Transportation equipment .......... 37 9.27 135.2 141.2 139.9 139.4 135.5 124.7 131.7 133.7 128.2 125.9 122.5 127.0 125.0 32 Motor vehicles and parts ......... 371 4.50 159.9 177.9 173.1 169.6 160.2 138.5 150.6 150.6 139.9 135.4 127.9 137.0 132.9 33 Aerospace and miscellaneous transportation equipment 372-9 4.77 112.0 106.6 108.6 111.0 112.2 111.8 113.9 117.7 117.1 117.0 117.4 117.5 117.5 34 Instruments ....................................... 38 2.11 174.9 175.2 176.0 175.9 174.0 173.9 172.9 175.0 173.3 175.0 176.0 175.5 176.7 35 Miscellaneous manufactures ... 39 1.51 153.8 152.0 154.0 152.7 155.7 155.7 153.6 154.5 155.3 153.7 153.6 152.3 151.3 Gross value (billions of 1972 dollars, annual rates) Major Market 36 Products, total .................................. 507.4 623.9 626.8 627.3 628.7 622.7 613.0 622.6 621.6 617.8 619.0 617.7 621.3 614.0 37 Final ................................................. 390.9 2 479.8 481.7 482.0 485.1 479.6 468.8 478.8 477.6 474.4 475.2 473.4 478.5 473.4 38 Consumer goods ......................... 277.52 326.2 328.9 329.4 329.8 326.0 319.2 323.6 324.6 321.9 321.6 320.0 322.9 320.3 39 Equipment .................................... 113.42 153.6 152.9 152.6 155.4 153.6 149.6 155.2 153.0 152.5 153.6 153.3 155.6 153.1 40 Intermediate ..................................... 116.62 144.2 145.1 145.3 143.6 143.2 144.2 143.8 144.0 143.4 143.8 144.4 142.8 140.6 1. The industrial production series has been revised. For a description of the Note. Published groupings include some series and subtotals not shown sepachanges, see “Revision of Industrial Production Index” in the August 1979 Bul- rately. For description and historical data, see Industrial Production—1976 Revision letin, pp. 603-05. (Board of Governors of the Federal Reserve System: Washington, D.C.), Decem- 2. 1972 dollars. ber 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics □ April 1980 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1979 1980 Item 1977 1978 1979' Aug. Sept. Oct. Nov. Dec.' Jan.' Feb. Private residential real estate activity (thousand of units) New Units 1 Permits authorized ....................................... 1,677 1,801 1,539 1,654 1,775 1,542 1,263 1,244 1,264 1,163 2 1-family ....................................................... 1,125 1,183 971 1,030 1,015 927 751 780 761 688 3 2-or-more-family ....................................... 551 618 568 624 760 615 512 464 503 475 4 Started .............................................................. 1,987 2,020 1,745 1,788 1,874 1,710 1,522 1,548 1,424 1,334 5 1-family ....................................................... 1,451 1,433 1,194 1,237 1,237 1,139 980 1,055 1,006 774 6 2-or-more-family ....................................... 536 587 551 551 637 571 542 493 418 560 7 Under construction, end of period1 ...... 1,208 1,310 1,018 1,235' 1,227' 1,212' 1,188' 1,161 1,171 n.a. 8 1-family ....................................................... 730 765 526 717' 716' 705' 687' 664 676 n.a. 9 2-or-more-family ....................................... 478 546 493 518 510' 506' 501' 498 495 n.a. 10 Completed ....................................................... 1,656 1,868 1,831 1,747' 1,963' 1,819' 1,831 1,875 1,763 n.a. 11 1-family ....................................................... 1,258 1,369 1,262 1,214' 1,228' 1,255' 1,240' 1,323 1,249 n.a. 12 2-or-more-family ....................................... 399 498 568 533' 735' 564 591' 552 514 n.a. 13 Mobile homes shipped ............................... 277 276 277 281 270 287 251 241 276 n.a. Merchant builder activity in 1-family units 14 Number sold .................................................. 820 818 708 738 716 674 617' 566 588 532 15 Number for sale, end of period1 ............ 408 419 403 414 412 407 399' 399 398 387 Price (thousand of dollars)2 Median 16 Units sold .................................................... 49.0 55.8 62.7 64.0 65.0 62.3 63.9' 61.8 63.8 65.1 17 Units for sale ............................................ 48.2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Average 18 Units sold .................................................... 54.4 62.7 72.0 74.0 76.8 71.5 74.2' 72.9 73.0 77.6 Existing Units (1-family) 19 Number sold ................................................... 3,572 3,905 3,742 3,790 3,900 3,870 3,450 3,350 3,210 2,990 Price of units sold (thous. of dollars)2 20 Median ............................................................. 42.8 48.7 55.5 57.7 57.3 56.3 55.6 56.5 57.9 59.0 21 Average ........................................................... 47.1 55.1 64.0 66.3 66.1 65.2 64.6 65.2 68.2 69.4 Value of new construction3 (millions of dollars) Construction 22 Total put in place ........................ 173,998 206,223 226,885 230,149' 232,898' 238,707' 250,011 242,109 23 Private ......................................... 135,824 160,403 178,168 180,480' 181,966' 185,948' 185,802' 189,906 190,601 186,875 24 Residential .............................. 80,957 93,425 97,574 97,362' 99,373' 100,663' 101,088' 101,982 99,697 97,793 25 Nonresidential, total ............... 54,867 66,978 80,594 83,118' 82,593' 85,285' 84,714' 87,924 90,904 89,082 Buildings 26 Industrial ......................... 7,713 10,993 14,424 13,751 13,698 15,019 15,022 15,249 15,559 16,041 27 Commercial ..................... 14,789 18,568 24.234 25,818 25,693 26,663 26,923 28,857 30,707 29,479 28 Other ............................... 6,200 6,739 7,352 7,532 7,331 7,851 7,722 8,194 9,090 8,418 29 Public utilities and other .... 26,165 30,678 34,584 36,017' 35,871' 35,752' 35,047' 35,624 35,548 35,144 30 Public .......................................... 38,172 45,821 48,722 49,669 50,932 52,759' 51,895' 52,103 59,410 55,234 31 Military ................................... 1,428 1,498 1,629 1,859 1,658 1,778' 1,742' 1,724 1,844 1,748 32 Highway .................................. 8,984 10,286 11,127 11,507 12,345 14,518 11,900 11,891 n.a. n.a. 33 Conservation and development 3,862 4,436 4,732 5,036 4,900 4,296 4.960 5,124 n.a. n.a. 34 Other4 ..................................... 23,898 29,601 31.234 31,267 32,029 32,167' 33,293' 33,364 n.a. n.a. 1. Not at annual rates. Note. Census Bureau estimates for all series except (a) mobile homes, which 2. Not seasonally adjusted. are private, domestic shipments as reported by the Manufactured Housing Institute 3. Value of new construction data in recent periods may not be strictly com­ and seasonally adjusted by the Census Bureau, and (b) sales and prices of existing parable with data in prior periods due to changes by the Bureau of the Census in units, which are published by the National Association of Realtors. All back and its estimating techniques. For a description of these changes see Construction current figures are available from originating agency. Permit authorizations are Reports (C-30-76-5), issued by the Bureau in July 1976. those reported to the Census Bureau from 14,000 jurisdictions through 1977, and 4. Beginning January 1977 Highway imputations are included in Other. 16,000 jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Prices A51 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted 12 months to 3 months (at annual rate) to 1 month to Index level Item 1979 1979 1980 F 19 e 8 b 0 . 1979 1980 (1967 Feb. Feb. = 100)1 Mar. June Sept. Dec. Oct. Nov. Dec. Jan. Feb. Consumer Prices2 1 All items ..................................................... 9.9 14.1 13.0 12.8 13.8 13.7 1.0 1.0 1.2 1.4 1.4 236.4 2 Commodities ..................................................... 10.0 13.6 13.6 12.7 13.3 12.5 .8 1.0 1.1 1.4 1.2 225.2 3 Food ................................................................. 13.0 7.3 16.0 6.4 6.5 12.1 .8 .7 1.4 0.0 0 244.9 4 Commodities less food ............................... 8.8 16.4 12.7 15.6 16.4 12.7 .8 1.1 1.1 2.0 1.7 213.8 5 Durable ....................................................... 9.8 10.1 9.3 9.4 9.1 13.2 .8 1.4 1.0 1.1 .5 202.1 6 Nondurable ............................................... 7.4 24.8 16.0 24.7 25.2 12.8 .8 .8 1.4 3.2 3.0 227.3 7 Services ................................................................ 9.7 15.0 11.8 13.2 14.3 15.8 1.2 1.1 1.4 1.4 1.5 256.8 8 Rent ................................................................... 7.1 8.5 4.3 8.2 10.2 9.0 1.3 .4 .4 .7 .8 185.6 9 Services less rent .......................................... 10.2 16.0 13.0 13.9 14.9 16.9 1.2 1.2 1.5 1.5 1.7 270.2 Other groupings 10 All items less food ........................................... 9.3 15.7 12.2 14.4 15.4 14.2 1.1 1.1 1.2 1.8 1.6 233.5 11 All items less food and energy ................... 9.1 12.1 10.2 10.1 10.9 13.9 1.0 1.1 1.2 1.3 1.1 222.8 12 Homeownership ................................................ 13.5 20.6 16.5 17.8 19.5 25.6 1.9 2.0 1.8 1.9 1.5 296.3 Producer Prices 13 Finished goods ................................................... 10.2 13.3 13.9 7.9 16.1 12.9 .9 1.2' .8' 1.6 1.5 235.4 14 Consumer ........................................................ 10.8 15.0 15.3 7.1 20.7 14.0 1.2' 1.4 .7' 1.6 1.8 237.3 15 Foods ........................................................... 12.8 2.9 18.0 -9.2 15.3 8.3 -.1 1.9' .2 -.8 -.5 231.6 16 Excluding foods ........................................ 9.6 22.0 13.6 17.2 23.4 17.3 1.8' 1.1 1.0' 2.8 2.9 237.8 17 Capital equipment ....................................... 8.8 9.3 10.5 9.4 5.9 9.4 .9' .7' .7' 1.6 .7 230.3 18 Materials .............................................................. 11.6 17.6 16.7 12.9 19.8 15.5 1.5 .9 1.2 2.0 2.3 278.4 19 Intermediate3 ................................................. 9.0 19.2 14.2 15.4 19.4 16.5 1.8' .9' 1.1' 3.0 1.7 273.2 Crude: 20 Nonfood ...................................................... 18.9 29.1 28.3 23.1 25.1 30.0 2.3 1.7 2.6' 2.8 3.2 413.9 21 Food ............................................................. 21.1 3.7 29.8 -4.5 16.4 5.7 .1' 1.0' .2' -3.8 2.2 252.6 1. Not seasonally adjusted 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers. animal feeds. Source. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics □ April 1980 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1978 1979 Account 1977 1978 1979' Q3 Q4 Ql Q2 Q3 Q4r Gross National Product 1 Total ............................................................................. 1,899.5 2,127.6 2,368.8 2,159.6 2,235.2 2,292.1 2,329.8 2,396.5 2,450.9 By source 2 Personal consumption expenditures ................................. 1,210.0 1,350.8 1,509.8 1,369.3 1,415.4 1,454.2 1,475.9 1,528.6 1,580.4 3 Durable goods .................................................................... 178.8 200.3 213.0 203.5 212.1 213.8 208.7 213.4 216.2 4 Nondurable goods .............................................................. 481.3 530.6 596.9 536.7 558.1 571.1 581.2 604.7 630.7 5 Services ................................................................................. 549.8 619.8 699.8 629.1 645.1 669.3 686.0 710.6 733.5 6 Gross private domestic investment .................................. 303.3 351.5 387.2 356.2 370.5 373.8 395.4 392.3 387.2 7 Fixed investment ................................................................ 281.3 329.1 369.0 336.1 349.8 354.6 361.9 377.8 381.7 8 Nonresidential ................................................................. 189.4 221.1 254.9 225.9 236.1 243.4 249.1 261.8 265.2 9 Structures ..................................................................... 62.6 76.5 92.6 79.7 84.4 84.9 90.5 95.0 100.2 10 Producer’s durable equipment ............................. 126.8 144.6 162.2 146.3 151.8 158.5 158.6 166.7 165.1 11 Residential structures .................................................. 91.9 108.0 114.1 110.2 113.7 111.2 112.9 116.0 116.4 12 Nonfarm ....................................................................... 88.8 104.4 110.2 106.4 110.0 107.8 109.1 112.0 112.1 13 Change in business inventories ..................................... 21.9 22.3 18.2 20.0 20.6 19.1 33.4 14.5 5.6 14 Nonfarm ........................................................................... 20.7 21.3 16.5 18.5 19.3 18.8 32.6 12.6 2.1 15 Net exports of goods and services ................................... -9.9 -10.3 -4.6 -6.8 -4.5 4.0 -8.1 -2.3 -11.9 16 Exports ................................................................................... 175.9 207.2 257.5 213.8 224.9 238.5 243.7 267.3 280.4 17 Imports ................................................................................... 185.8 217.5 262.1 220.6 229.4 234.4 251.9 269.5 292.4 18 Government purchases of goods and services............. 396.2 435.6 476.4 440.9 453.8 460.1 466.6 477.8 501.2 19 Federal ................................................................................... 144.4 152.6 166.6 152.3 159.0 163.6 161.7 162.9 178.4 20 State and local .................................................................... 251.8 283.0 309.8 288.6 294.8 296.5 304.9 314.9 322.8 By major type of product 21 Final sales, total ..................................................................... 1,877.6 2,105.2 2,350.6 2,139.5 2,214.5 2,272.9 2,296.4 2.381.9 2,451.4 22 Goods .................................................................................... 842.2 930.0 1,030.5 940.9 983.8 1,011.8 1,018.1 1,036.0 1,056.3 23 Durable ............................................................................. 345.9 380.4 423.1 382.6 402.3 425.5 422.4 424.4 420.2 24 Nondurable ..................................................................... 496.3 549.6 607.4 558.3 581.6 586.2 595.7 611.6 636.1 25 Services ................................................................................. 866.4 969.3 1,085.1 981.7 1,005.3 1,041.4 1,064.2 1,100.6 1,134.0 26 Structures .............................................................................. 190.9 228.2 253.2 237.0 246.0 238.9 247.5 259.8 266.0 27 Change in business inventories ......................................... 21.9 22.3 18.2 20.0 20.6 19.1 33.4 14.5 5.6 28 Durable goods .................................................................... 11.9 13.9 13.0 10.3 13.4 18.4 24.3 7.3 1.8 29 Nondurable goods .............................................................. 10.0 8.4 5.2 9.7 7.2 .7 9.1 7.2 3.8 30 Memo: Total GNP in 1972 dollars.............................. 1,340.5 1,399.2 1,431.6 1,407.3 1,426.6 1,430.6 1,422.3 1,433.3 1,440.3 National Income 31 Total ............................................................................. 1,525.8 1,724.3 1,925.6 1,752.5 1,820.0 1,869.0 1,897.9 1,941.9 1,993.6 32 Compensation of employees .............................................. 1,156.9 1,304.5 1,227.4 1,321.1 1,364.8 1,411.2 1,439.7 1,472.9 1,513.2 33 Wages and salaries ............................................................. 984.0 1,103.5 1,459.2 1,117.4 1,154.7 1,189.4 1,211.5 1,238.0 1,270.7 34 Government and government enterprises ............ 201.3 218.0 233.5 219.2 225.1 228.1 231.2 234.4 240.2 35 Other ................................................................................. 782.7 885.5 993.9 898.1 929.6 961.3 980.3 1,003.6 1,030.5 36 Supplement to wages and salaries ............................... 172.9 201.0 231.8 203.7 210.1 221.8 228.2 234.8 242.5 37 Employer contributions for social insurance ....... 81.2 94.6 109.1 95.5 98.2 105.8 107.9 109.9 113.0 38 Other labor income ....................................................... 91.8 106.5 122.7 108.2 111.9 116.0 120.3 124.9 129.6 39 Proprietors’ income1 .............................................................. 100.2 116.8 130.8 117.4 125.7 129.0 129.3 130.3 134.5 40 Business and professional1 .............................................. 80.5 89.1 98.0 91.3 94.4 94.8 95.5 99.4 102.1 41 Farm1 ...................................................................................... 19.6 27.7 32.8 26.1 31.3 34.2 33.7 30.9 32.5 42 Rental income of persons2 .................................................. 24.7 25.9 26.9 26.8 27.1 27.3 26.8 26.6 27.0 43 Corporate profits1 .................................................................. 150.0 167.7 179.0 175.2 184.8 178.9 176.6 180.8 179.6 44 Profits before tax3 .............................................................. 177.1 206.0 237.4 212.0 227.4 233.3 227.9 242.3 246.2 45 Inventory valuation adjustment .................................... -15.2 -25.2 -41.8 -23.0 -28.8 -39.9 -36.6 -44.0 -46.5 46 Capital consumption adjustment .................................. -12.0 -13.1 -16.7 -13.8 -13.8 -14.5 -14.7 -17.6 -20.1 47 Net interest .............................................................................. 94.0 109.5 129.7 111.9 117.6 122.6 125.6 131.5 139.2 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.50. 2. With capital consumption adjustments. Source. Survey of Current Business (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 1977 1978 1979' Q3 04 Ql Q2 Q3 Q4' Personal Income and Saving 1 Total personal income ......................................................... 1.531.6 1,717.4 1.924.2 1.742.5 1.803.1 1.852.6 1,892.5 1.946.6 2.005.0 2 Wage and salary disbursements ..................................... 984.0 1.103.3 1,227.6 1,116.8 1.154.3 1,189.3 1.212.4 1,238.1 1,270.5 3 Commodity-producing industries ............................... 343.1 387.4 435.2 393.7 408.6 423.0 431.7 438.3 447.8 4 Manufacturing ............................................................... 266.0 298.3 330.9 300.8 312.7 324.8 328.5 331.9 338.3 5 Distributive industries .................................................... 239.1 269.4 300.8 272.5 281.6 291.1 295.8 304.0 312.4 6 Service industries ............................................................. 200.5 228.7 257.9 231.9 239.4 247.2 252.8 261.3 270.2 7 Government and government enterprises ............. 201.3 217.8 233.7 218.7 224.7 228.0 232.1 234.5 240.1 8 Other labor income ............................................................ 91.8 106.5 122.7 108.2 111.9 116.0 120.3 124.9 129.6 9 Proprietors’ income1 ........................................................... 100.2 116.8 130.8 117.4 125.7 129.0 129.3 130.3 134.5 10 Business and professional1 ........................................... 80.5 89.1 98.0 91.3 94.4 94.8 95.5 99.4 102.1 11 Farm1 .................................................................................. 19.6 27.7 32.8 26.1 31.3 34.2 33.7 30.9 32.5 12 Rental income of persons2 ................................................ 24.7 25.9 26.9 26.8 27.1 27.3 26.8 26.6 27.0 13 Dividends ................................................................................. 42.1 47.2 52.7 47.8 49.7 51.5 52.3 52.8 54.4 14 Personal interest income ................................................... 141.7 163.3 192.1 167.2 174.3 181.0 187.6 194.4 205.5 15 Transfer payments ............................................................... 208.4 224.1 252.0 228.3 231.8 237.3 243.6 260.8 266.5 16 Old-age survivors, disability, and health insurance benefits ........................................................................ 105.0 116.3 132.4 119.8 121.5 123.8 127.1 138.7 140.0 17 Less: Personal contributions for social insurance 61.3 69.6 80.7 70.2 71.8 78.7 79.8 81.2 82.9 18 Equals: Personal income ................................................ 1.531.6 1.717.4 1.924.2 1.742.5 1.803.1 1.852.6 1.892.5 1.946.6 2.005.0 19 Less: Personal tax and nontax payments ................ 226.4 259.0 299.9 266.0 278.2 280.4 290.7 306.6 321.9 20 Equals: Disposable personal income .......................... 1.305.1 1.458.4 1.629.3 1.476.5 1,524.8 1,572.2 1.601.7 1,640.0 1.683.1 21 Less: Personal outlays ................................................... 1.240.2 1.386.4 1,550.5 1.405.6 1.453.4 1,493.0 1.515.8 1.569.7 1,623.4 22 Equals: Personal saving ................................................... 65.0 72.0 73.8 70.9 71.5 79.2 85.9 70.3 59.7 Memo: Per capita (1972 dollars) 23 Gross national product .................................................. 6,181 6,402 6,494 6,433 6,506 6,514 6,459 6,494 6,509 24 Personal consumption expenditures .......................... 3,974 4,121 4,194 4,138 4,197 4,197 4,155 4,195 4,227 25 Disposable personal income ......................................... 4,285 4,449 4,512 4,462 4,522 4,536 4,510 4,501 4,502 26 Saving rate (percent) ........................................................... 5.0 4.9 4.5 4.8 4.7 5.0 5.4 4.3 3.5 Gross Saving 27 Gross private saving ............................................................ 342.6 28 Personal saving ..................................................................... 65.0 72.0 73.8 70.9 71.5 79.2 85.9 70.3 59.7 29 Undistributed corporate profits1 ..................................... 35.2 36.0 33.4 40.0 40.1 36.1 35.6 34.0 27.8 30 Corporate inventory valuation adjustment ................. -15.2 -25.2 -41.8 -23.0 -28.8 -39.9 -36.6 -44.0 -46.5 Capital consumption allowances 31 Corporate ................................................................................. 121.3 132.9 147.7 134.3 136.8 139.9 145.1 150.4 155.3 32 Noncorporate .......................................................................... 74.1 84.0 95.3 85.2 87.7 89.9 93.9 97.5 99.8 33 Wage accruals less disbursements .................................. 34 Government surplus, or deficit (-), national income and produce accounts ................................................. -19.5 -.3 13.5 -2.3 10.8 15.8 12.7 14.0 11.3 35 Federal ................................................................................. -46.3 -27.7 -11.2 -20.4 -16.3 -11.7 -7.0 -11.3 -14.7 36 State and local .................................................................. 26.8 27.4 24.7 22.7 27.1 27.6 19.7 25.3 26.0 37 Capital grants received by the United States, net .... 38 Investment .............................................................................. 283.6 327.9 367.6 336.5 351.0 362.8 373.1 375.6 359.1 39 Gross private domestic .................................................. 303.3 351.5 387.2 356.2 370.5 373.8 395.4 392.3 387.2 40 Net foreign .......................................................................... -19.6 -23.5 -19.5 -19.6 -19.4 -11.0 -22.3 -16.7 -28.1 41 Statistical discrepancy ......................................................... 7.5 3.3 2.9 3.9 Source. Survey of Current Business (Department of Commerce). 1. With inventory valuation and capital consumption adjustments. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics □ April 1980 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1978 1979 Item credits or debits 1977 1978 1979 Q4 Ql Q2 Q3r Q4 1 Balance on current account ........................................................... -14,092 -13,467 -317 105' 274' -810' 1,139 -923 2 Not seasonally adjusted .............................................................. 1,130r 1,737' -178' -2,717 841 3 Merchandise trade balance2 ....................................................... -30,873 -33,759 -29,450 -5,951' -6,197' -7,409' -7,248 -8,596 4 Merchandise exports ................................................................ 120,816 142,054 182,074 39,421' 41,435' 42,890' 47,235 50,514 5 Merchandise imports ................................................................ -151,689 -175,813 -211,524 -45,372' -47,632' -50,299' -54,483 -59,110 6 Military transactions, net ............................................................. 1,679 492 -1,181 -239 34 -217 -418 -580 7 Investment income, net3 ............................................................. 17,989 21,645 32,314 6,599 6,814' 7,414' 9,174 8,912 8 Other service transactions, net ................................................. 1,783 3,241 3,648 1,010 945' 765' 1,000 935 9 Memo: Balance on goods and services3-4 .............................. -9,423 -8,381 5,332 1,419' 1,596' 553' 2,508 671 10 Remittances, pensions, and other transfers ......................... -1,895 -1,934 -2,160 -524 -517 -466 -497 -680 11 U.S. government grants (excluding military) ...................... -2,775 -3,152 -3,488 -790 -805 -897 -872 -914 12 Change in U.S. government assets, other than official re­ serve assets, net (increase, -) ............................................ -3,693 -4,656 -3,780 -994 -1,094 -1,001 -763 -922 13 Change in U.S. official reserve assets (increase, -) ............ -375 732 -1,107 182 -3,585 343 2,779 -644 14 Gold ................................................................................................... -118 -65 -65 -65 0 0 0 -65 15 Special drawing rights (SDRs) .................................................. -121 1,249 -1,136 1,412 -1,142 6 0 0 16 Reserve position in International Monetary Fund ............ -294 4,231 -189 3,275 -86 -78 -52 27 17 Foreign currencies ......................................................................... 158 -4,683 283 -4,440 -2,357 415 2,831 -606 18 Change in U.S. private assets abroad (increase, -)3 .......... -31,725 -57,033 -58,536 -29,442 -2,943' -15,494' -26,825 -13,273 19 Bank-reported claims ................................................................... -11,427 -33,023 -26,089 -21,980 6,572 -8,266 -17,127 -7,268 20 Nonbank-reported claims ........................................................... -1,940 -3,853 -2,718 -1,898 -2,719 668 -667 n.a. 21 U.S. purchase of foreign securities, net................................. -5,460 -3,487 -4,967 -918 -1,056 -629 -2,164 -1,118 22 U.S. direct investments abroad, net3 ..................................... -12,898 -16,670 -24,762 -4,646 -5,740' -7,267' -6,867 -4,887 23 Change in foreign official assets in the United States (increase, +) ............................................................................... 36,656 33,758 -15,192 18,764 -9,391 -10,043 5,745 -1,503 24 U.S. Treasury securities .............................................................. 30,230 23,542 -22,470 13,422 -8,872 -12,859 5,030 -5,769 25 Other U.S. government obligations ........................................ 2,308 656 465 -115 -5 94 335 41 26 Other U.S. government liabilities5 ......................................... 1,240 2,754 -748 2,045 -164 257 191 -1,031 27 Other U.S. liabilities reported by U.S. banks..................... 773 5,411 6,553 3,156 -563 2,321 83 4,712 28 Other foreign official assets6 ..................................................... 2,105 1,395 1,008 256 213 145 106 544 29 Change in foreign private assets in the United States (increase, +)3 ............................................................................. 14,167 29,956 49,094 10,475 10,868 16,100 18,544 3,582 30 U.S. bank-reported liabilities .................................................... 6,719 16,975 32,702 7,556 7,157 12,067 13,006 472 31 U.S. nonbank-reported liabilities ............................................. 473 1,640 1,118 -177 -651 1,086 683 n.a. 32 Foreign private purchases of U.S. Treasury securities. net ............................................................................................... 534 2,180 4,725 1,549 2,583 -239 1,460 921 33 Foreign purchases of other U.S. securities, net .................. 2,713 2,867 2,874 540 790 1,161 605 319 34 Foreign direct investments in the United States, net3 ...... 3,728 6,294 7,674 1,007' 989 2,025 2,790 1,871 35 Allocation of SDRs ............................................................................ 0 0 1,139 0 1,139 0 0 0 36 Discrepancy .......................................................................................... -937 10,711 28,699 910' 4,732' 10,904' -619 13,682 37 Owing to seasonal adjustments ................................................. 1,291' 1,117' 482' -3,821 2,222 38 Statistical discrepancy in recorded data before seasonal adjustment ............................................................................... -937 10,711 28,699 -381' 3,615' 10,422' 3,202 11,460 Memo: Changes in official assets 39 U.S. official reserve assets (increase, -) ............................ -375 732 -1,107 182 -3,585 343 2,779 -644 40 Foreign official assets in the United States (increase, +) .......................................................................... 35,416 31,004 -14,444 16,719 -9,227 -10,299 5,554 -472 41 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 23 above) ............................................................................................ 6,351 -727 4,737 1,803 -1,916 151 1,658 4,844 42 Transfers under military grant programs (excluded from lines 4, 6, and 11 above) ........................................................ 204 259 288 63 31 48 84 124 1. Seasonal factors are no longer calculated for lines 13 through 42. various adjustments to merchandise trade and service transactions. 2. Data are on an international accounts (IA) basis. Differs from the census 5. Primarily associated with military sales contracts and other transactions ar­ basis primarily because the IA basis includes imports into the U.S. Virgin Islands, ranged with or through foreign official agencies. and it excludes military exports, which are part of line 6. 6. Consists of investments in U.S. corporate stocks and in debt securities of 3. Includes reinvested earnings of incorporated affiliates. private corporations and state and local governments. 4. Differs from the definition of “net exports of goods and services” in the national income and product (GNP) account. The GNP definition makes Note. Data are from Bureau of Economic Analysis, Survey of Current Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Trade and Reserve Assets A55 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1979 1980 Item 1977 1978 1979 Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments ............................................... 121,150 143,578 181,637 15,713 15,822 16,680 16,928 16,742 17,348 17,233 2 GENERAL IMPORTS including mer­ chandise for immediate consump­ tion plus entries into bonded warehouses ............................................. 147,685 171,978 206,326 18,277 18,407 19,037 18,548 19,665 20,945 21,640 3 Trade balance ........................................ -26,535 -23,400 -24,690 -2,564 -2,585 -2,357 -1,620 -2,923 -3,597 -4,407 Note. Bureau of Census data reported on a free-alongside-ship (f.a.s.) value On the import side, the largest single adjustment is the addition of imports into basis. Effective January 1978, major changes were made in coverage, reporting, the Virgin Islands (largely oil for a refinery on St. Croix), which are not included and compiling procedures. The intemational-accounts-basis data adjust the Census in Census statistics. basis data for reasons of coverage and timing. On the export side, the largest adjustments are: (a) the addition of exports to Canada not covered in Census Source. FT 900 “Summary of U.S. Export and Import Merchandise Trade” statistics, and (b) the exclusion of military exports (which are combined with other (U.S. Department of Commerce, Bureau of the Census). military transactions and are reported separately in the “service account”). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1979 1980 Type 1977 1978 1979 Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 Total1 ...................................................... 19,312 18,650 18,928 18,534 17,994 19,261 18,928 20,962 20,840 21,448 2 Gold stock, including exchange Stabili­ zation Fund1 .......................................... 11,719 11,671 11,172 11,228 11,194 11,112 11,172 11,172 11,172 11,172 3 Special drawing rights2-3 ............................ 2,629 1,558 2,724 2,725 2,659 2,705 2,724 3,871 3,836 3,681 4 Reserve position in International Mone­ tary Fund2 .............................................. 4,946 1,047 1,253 1,280 1,238 1,322 1,253 1,251 1,287 1,222 5 Foreign Currencies4 .................................... 18 4,374 3,779 3,301 2,903 4,122 3,779 4,668 4,545 5,373 1. Gold held under earmark at Federal Reserve Banks for foreign and inter­ 3. Includes allocations by the International Monetary Fund of SDRs as follows: national accounts is not included in the gold stock of the United States; see table $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 3.22 1, 1972; and $1,139 million on Jan. 1, 1979; plus net transactions in SDRs. 2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based 4. Beginning November 1978, valued at current market exchange rates. on a weighted average of exchange rates for the currencies of 16 member countries. The U.S. SDR holdings and reserve position in the IMF also are valued on this basis beginning July 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics □ April 1980 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1979 1980 Asset account 1976 1977 19781 July Aug. Sept. Oct. Nov. Dec. Jan .p All foreign countries 1 Total, all currencies ............................... 219,420 258,897 306,795 326,545 350,441 360,817 358,320 365,587 364,165 361,329 2 Claims on United States ............................ 7,889 11,623 17,340 26,605 41,917 37,758 34,880 37,606 32,309 32,219 3 Parent bank ............................................... 4,323 7,806 12,811 19,734 35,203 30,004 28,046 31,133 25,925 25,321 4 Other ........................................................... 3,566 3,817 4,529 6,871 6,714 7,754 6,834 6,473 6,384 6,898 5 Claims on foreigners .................................. 204,486 238,848 278,135 286,590 295,011 309,004 309,652 313,409 317,099 314,147 6 Other branches of parent bank .......... 45,955 55,772 70,338 70,124 74,749 80,106 80,126 79,076 79,664 76,083 7 Banks ........................................................... 83,765 91,883 103,111 107,957 111,190 117,994 119,253 122,004 123,304 124,834 8 Public borrowers2 .................................... 10,613 14,634 23,737 24,580 25,132 25,777 25,288 25,568 26,057 25,784 9 Nonbank foreigners ................................. 64,153 76,560 80,949 83,929 83,940 85,127 84,985 86,761 88,074 87,446 10 Other assets .................................................... 7,045 8,425 11,320 13,350 13,513 14,055 13,788 14,572 14,757 14,963 11 Total payable in U.S. dollars ................ 167,695 193,764 224,940 234,445 259,035 263,630 263,094 266,544 267,644 266,122 12 Claims on United States ............................ 7,595 11,049 16,382 25,536 40,799 36,527 33,638 36,362 31,178 31,134 13 Parent bank ................................................ 4,264 7,692 12,625 19,478 34,939 29,773 27,674 30,652 25,628 25,049 14 Other ........................................................... 3,332 3,357 3,757 6,058 5,860 6,754 5,964 5,710 5,550 6,085 15 Claims on foreigners .................................. 156,896 178,896 203,498 202,426 211,663 220,665 222,543 223,201 229,043 227,110 16 Other branches of parent bank .......... 37,909 44,256 55,408 53,629 58,255 62,058 61,918 60,397 61,528 58,705 17 Banks ........................................................... 66,331 70,786 78,686 79,951 83,466 88,882 90,911 92,730 96,152 97,655 18 Public borrowers2 .................................... 9,022 12,632 19,567 20,188 20,988 21,439 20,909 21,160 21,615 21,536 19 Nonbank foreigners ................................. 43,634 51,222 49,837 48,658 48,954 48,286 48,805 48,914 49,748 49,214 70 Other assets .................................................. 3,204 3,820 5,060 6,483 6,573 6,438 6,913 6,981 7,423 7,878 United Kingdom 21 Total, all currencies ............................... 81,466 90,933 106,593 115,217 120,703 126,091 127,949 131,959 130,873 128,417 22 Claims on United States ............................ 3,354 4,341 5,370 8,408 10,559 10,687 11,653 11,841 11,114 10,147 23 Parent bank ............................................... 2,376 3,518 4,448 6,177 8,520 8,395 9,643 9,892 9,335 8,207 24 Other ........................................................... 978 823 922 2,231 2,039 2,292 2,010 1,949 1,779 1,940 25 Claims on foreigners .................................. 75,859 84,016 98,137 103,033 106,394 111,598 112,450 115,656 115,126 113,632 26 Other branches of parent bank .......... 19,753 22,017 27,830 28,376 31,800 32,998 32,464 33,487 34,294 31,995 27 Banks ........................................................... 38,089 39,899 45,013 46,291 46,625 49,938 51,466 52,580 51,343 52,192 28 Public borrowers2 .................................... 1,274 2,206 4,522 4,489 4,639 4,882 4,646 4,868 4,919 4,559 29 Nonbank foreigners ................................. 16,743 19,895 20,772 23,877 23,330 23,780 23,874 24,721 24,570 24,886 30 Other assets .................................................... 2,253 2,576 3,086 3,776 3,750 3,806 3,846 4,462 4,633 4,638 31 Total payable in U.S. dollars ................ 61,587 66,635 75,860 79,211 85,380 89,032 91,485 93,502 94,287 91,760 32 Claims on United States ............................ 3,375 4,100 5,113 7,956 10,146 10,169 11,164 11,352 10,743 9,820 33 Parent bank ................................................ 2,374 3,431 4,386 6,060 8,443 8,343 9,485 9,697 9,294 8,161 34 Other ............................................................ 902 669 727 1,896 1,703 1,826 1,679 1,655 1,449 1,659 35 Claims on foreigners .................................. 57,488 61,408 69,416 69,496 73,503 77,145 78,428 80,127 81,297 79,740 36 Other branches of parent bank .......... 17,249 18,947 22,838 23,481 26,983 27,631 27,092 27,993 28,931 26,842 37 Banks ........................................................... 28,983 28,530 31,482 30,626 31,318 34,276 36,183 36,604 36,760 37,487 38 Public borrowers2 .................................... 846 1,669 3,317 3,166 3,210 3,336 3,206 3,311 3,319 3,274 39 Nonbank foreigners ................................. 10,410 12,263 11,779 12,223 11,992 11,902 11,947 12,219 12,287 12,137 40 Other assets .................................................... 824 1,126 1,331 1,759 1,731 1,718 1,893 2,023 2,247 2,200 Bahamas and Caymans 41 Total, all currencies ............................... 66,774 79,052 91,735 98,839 113,512 109,925 106,484 108,872 108,909 111,969 42 Claims on United States ............................ 3,508 5,782 9,635 16,613 29,021 24,731 21,394 23,856 19,134 20,296 43 Parent bank ............................................... 1,141 3,051 6,429 12,566 24,929 19,919 17,131 19,868 15,195 15,899 44 Other ........................................................... 2,367 2,731 3,206 4,047 4,092 4,812 4,263 3,988 3,939 4,397 45 Claims on foreigners .................................. 62,048 71,671 79,774 79,476 81,370 82,296 82,068 81,959 86,642 88,236 46 Other branches of parent bank .......... 8,144 11,120 12,904 11,760 10,745 10,834 10,514 8,854 9,689 10,867 47 Banks ........................................................... 25,354 27,939 33,677 35,053 37,261 38,425 38,820 40,050 43,080 43,845 48 Public borrowers2 ................................... 7,105 9,109 11,514 12,301 12,619 12,757 12,355 12,658 12,890 12,895 49 Nonbank foreigners ................................. 21,445 23,503 21,679 20,362 20,745 20,280 20,379 20,397 20,983 20,629 50 Other assets ................................................... 1,217 1,599 2,326 2,750 3,121 2,898 3,022 3,057 3,133 3,437 51 Total payable in U.S. dollars ................ 62,705 73,987 85,417 92,216 106,767 103,034 99,715 101,932 102,301 106,041 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 1980 Liability account 1976 1977 1978' July Aug. Sept. Oct. Nov. Dec. Jan .p All foreign countries 52 Total, all currencies ............................... 219,420 258,897 306,795 326,545 350,441 360,817 358,320 365,587 364,165 361,329 53 To United States ......................................... 32,719 44,154 57,948 60,097 67,744 67,505r 65,998 62,179r 66,564 71,458 54 Parent bank ............................................... 19,773 24,542 28,464 20,256 20,242 21,343r 21,317 19,274r 24,275 25,987 5 5 6 5 N O o th n e b r a n b k a s n k . s . .. i .. n .. .. U ... n ... i . t .. e .. d .. .. S ... t . a ... t . e .. s .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . | 12,946 19,613 1 1 2 7 , , 3 1 3 4 8 6 2 1 7 2 , , 4 4 0 3 5 6 2 1 9 7 , , 7 7 1 8 7 5 2 1 7 8 , , 5 5 8 8 1 1r 2 1 9 4 , , 9 7 6 1 8 3 2 1 9 3 , , 0 8 0 9 8 7 2 1 7 5 , , 1 1 6 25 4 3 1 2 3 , , 2 1 7 9 5 6 179,954 206,579 738,912 253,785 270,328 280,391 ' 279,338 289,555r 283,330 275,868 58 Other branches of parent bank .......... 44,370 53,244 67,496 67,961 72,977 78,413r 78,103 77,188 77,601 72,809 59 Banks ........................................................... 83,880 94,140 97,711 105,296 117,794 117,853' 116,058 128,024 122,829 121,943 60 Official institutions .................................. 25,829 28,110 31,936 35,363 33,511 36,196 35,921 34,958 35,664 33,163 61 Nonbank foreigners ................................ 25,877 31,085 41,769 45,165 46,046 47,929 49,256 49,385 47,236 47,953 62 Other liabilities ............................................ 6,747 8,163 9,935 12,663 12,369 12,921 12,984 13,853 14,271 14,003 63 Total payable in U.S. dollars ................ 173,071 198,572 230,810 240,452 264,339 269,811 268,769 272,166 273,751 271,694 64 To United States .......................................... 31,932 J ’ 42,881 55,811 57,455 65,126 64,882 ' 63,408 59,889 64,480 69,085 65 Parent bank ................................................ 19,599 24,213 27,393 19,218 19,192 20,177r 20,089 18,089 23,220 24,859 6 67 6 N O o th n e b r a n b k a s n k . s . .. i .. n .. .. U ... n ... i . t .. e .. d .. .. S ... t . a ... t . e .. s .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . } 12,373 18,669 1 1 6 2 , , 3 0 3 8 4 4 2 1 6 2 , , 1 1 0 3 7 0 2 1 8 7 , , 5 3 8 4 9 5 2 1 6 8 , , 5 1 6 4 5 0r 2 1 8 4 , , 9 3 4 7 4 5 2 1 8 3 , , 1 6 0 9 2 8 2 1 6 4 , , 3 9 2 32 8 3 1 1 2 , , 3 8 6 6 0 6 68 To foreigners ................................................. 137,612 151,363 169,927 176,613 192,481 197,993 ' 198,327 204,654 201,462 195,073 69 Other branches of parent bank .......... 37,098 43,268 53,396 52,048 56,840 60,656r 60,511 59,429 60,513 56,729 70 Banks ........................................................... 60,619 64,872 63,000 65,945 78,006 76,032r 74,852 83,605 80,671 80,937 71 Official institutions .................................. 22,878 23,972 26,404 29,497 27,468 29,932 29,653 28,521 29,048 26,793 72 Nonbank foreigners ................................. 17,017 19,251 27,127 29,123 30,167 31,373 33,311 33,099 31,230 30,614 73 Other liabilities ............................................ 3,527 4,328 5,072 6,384 6,732 6,936 7,034 7,623 7,809 7,536 United Kingdom 74 Total, all currencies ............................... 81,466 90,933 106,593 115,217 120,703 126,091 127,949 131,959 130,873 128,417 75 To United States .......................................... 5,997 7,753 9,730 13,626 17,174 18,502 19,730 19,612 20,986 20,378 76 Parent bank ................................................ 1,198 1,451 1,887 1,706 2,669 2,070 2,258 2,516 3,104 3,014 7 7 8 7 N O o th n e b r a n b k a s n k . s . .. i .. n .. .. U ... n ... i . t .. e .. d .. .. S ... t . a ... t . e .. s .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . } 4,798 6,302 4 3, , 6 2 1 3 1 2 4 7 , , 8 0 2 9 2 8 6 8 , , 1 3 5 5 5 0 8 7 , , 6 7 4 9 2 0 9 8 , , 4 00 68 4 7 9 , , 3 7 8 1 1 5 9 8 , , 1 7 6 1 7 5 9 7 , ,6 7 3 3 1 3 79 To foreigners ................................................. 73,228 80,736 93,202 96,258 98,557 102,533 103,093 106,766 104,032 102,117 80 Other branches of parent bank .......... 7,092 9,376 12,786 11,193 11,507 13,045 13,139 12,463 12,567 11,458 81 Banks ........................................................... 36,259 37,893 39,917 41,336 46,256 44,913 44,440 49,299 47,620 48,872 82 Official institutions .................................. 17,273 18,318 20,963 24,017 21,825 24,461 24,438 23,060 24,202 21,944 83 Nonbank foreigners ................................. 12,605 15,149 19,536 19,712 18,969 20,114 21,076 21,944 19,643 19,843 84 Other liabilities ............................................ 2,241 2,445 3,661 5,333 4,972 5,056 5,126 5,581 5,855 5,922 85 Total payable in U.S. dollars ................... 63,174 67,573 77,030 80,398 86,642 90,682 92,817 94,983 95,449 92,771 86 To United States ......................................... 5,849 7,480 9,328 13,077 16,572 17,868 19,187 19,138 20,552 19,827 87 Parent bank ............................................... 1,182 1,416 1,836 1,637 2,613 1,966 2,196 2,467 3,054 2,968 8 8 8 9 O No th n e b r a n b k a s n k . s . .. i .. n .. .. U ... n ... i . t .. e .. d .. .. S ... t . a .. t .. e .. s .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . } 4,667 6,064 4 3 , , 1 34 44 8 4 6 , ,6 7 8 5 3 7 6 7, , 8 0 9 6 1 8 7 8 , , 7 1 1 8 5 7 9 7 , , 0 9 5 4 1 0 7 9 , , 3 3 3 3 8 3 8 8 , , 6 8 7 25 3 7 9 , , 5 2 6 9 9 0 90 To foreigners ................................................. 56,372 58,977 66,216 65,403 68,035 70,730 71,561 73,542 72,397 70,597 91 Other branches of parent bank .......... 5,874 7,505 9,635 7,377 7,720 8,663 8,955 8,337 8,446 7,793 92 Banks ........................................................... 25,527 25,608 25,287 23,893 28,698 26,851 26,132 29,424 29,424 30,988 93 Official institutions .................................. 15,423 15,482 17,091 20,288 18,119 20,703 20,457 19,139 20,192 18,117 94 Nonbank foreigners ................................ 9,547 10,382 14,203 13,845 13,498 14,513 16,017 16,642 14,335 13,699 95 Other liabilities ............................................ 953 1,116 1,486 1,918 2,035 2,084 2,069 2,303 2,500 2,347 Bahamas and Caymans 96 Total, all currencies ............................... 66,774 79,052 91,735 98,839 113,512 109,925 106,484 108,872 108,909 111,969 97 To United States .......................................... 22,721 32,176 39,431 37,939 41,734 40,582 38,294 34,995r 37,669 44,225 98 Parent bank ................................................ 16,161 20,956 20,356 12,232 11,117 13,525 12,864 10,937r 15,084 18,041 99 Other banks in United States ............. | 6,560 11,220 6,199 6,342 10,192 8,947 5,757 5,545 5,343 4,606 100 Nonbanks .................................................... 12,876 19,365 20,425 18,110 19,673 18,513 17,242 21,578 101 To foreigners ................................................. 42,899 45,292 50,447 58,724 69,373 67,017 65,920 71,259r 68,584 65,044 102 Other branches of parent bank .......... 13,801 12,816 16,094 18,223 20,246 20,730 19,304 21,078' 20,875 20,555 103 Banks ........................................................... 21,760 24,717 23,104 28,204 35,121 32,799 32,266 36,498 33,611 30,444 104 Official institutions .................................. 3,573 3,000 4,208 4,375 4,751 4,418 4,712 5,176 4,866 5,020 105 Nonbank foreigners ................................. 3,765 4,759 7,041 7,922 9,255 9,070 9,638 8,507 9,232 9,025 106 Other liabilities ............................................ 1,154 1,584 1,857 2,176 2,405 2,326 2,270 2,618 2,656 2,700 107 Total payable in U.S. dollars ................ 63,417 74,463 87,014 93,470 107,623 104,113 100,820 103,339 103,392 107,025 1. In May 1978 the exemption level for branches required to report was in- rowers, including corporations that are majority owned by foreign governments, creased, which reduced the number of reporting branches. replaced the previous, more narrowly defined claims on foreign official institutions. 2. In May 1978 a broader category of claims on foreign public bor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics □ April 1980 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1979 1980 Item 1977 1978 1979 Aug. Sept. Oct. Nov. Dec. Jan.P Feb.P 1 Total1 ........................................................................ 131,097 162,567 149,452 148,726 149,780 146,728 141,306 149,452 145,778 144,916 By type 2 Liabilities reported by banks in the United States2 18,003 23,274 30,476 25,398 25,619 24,951 26,643 30,476 24,598 24,446 3 U.S. Treasury bills and certificates3 ........................... 47,820 67,671 47,666 50,146 50,842 49,411 43,921 47,666 48,864 48,234 U.S. Treasury bonds and notes 4 Marketable ....................................................................... 32,164 35,912 37,672 38,005 38,106 38,162 37,125 37,672 38,153 37,894 5 Nonmarketable4 ............................................................. 20,443 20,970 17,387 19,547 19,547 18,497 17,837 17,387 17,434 17,384 6 U.S. securities other than U.S. Treasury securities5 12,667 14,740 16,251 15,630 15,666 15,707 15,780 16,251 16,729 16,958 By area 7 Western Europe1 ................................................................ 70,748 92,989 85,650 86,485 87,117 85,467 80,838 85,650 82,483 79,808 8 Canada ................................................................................... 2,334 2,506 1,898 2,185 2,412 1,954 1,971 1,898 1,922 2,347 9 Latin America and Caribbean ....................................... 4,649 5,045 6,371 4,497 4,890 4,559 4,579 6,371 4,784 4,896 10 Asia ......................................................................................... 50,693 58,858 52,639 51,928 52,414 51,782 51,151 52,639 53,377 54,546 11 Africa ...................................................................................... 1,742 2,423 2,412 3,219 2,513 2,583 2,215 2,412 2,480 2,392 12 Other countries6 ................................................................. 931 746 482 412 434 383 552 482 732 927 1. Includes the Bank for International Settlements. 5. Debt securities of U.S. government corporations and federally sponsored 2. Principally demand deposits, time deposits, bankers acceptances, commercial agencies, and U.S. corporate stocks and bonds. paper, negotiable time certificates of deposit, and borrowings under repurchase 6. Includes countries in Oceania and Eastern Europe. agreements. 3. Includes nonmarketable certificates of indebtedness (including those payable Note: Based on Treasury Department data and on data reported to the Treasury in foreign currencies through 1974) and Treasury bills issued to official institutions Department by banks (including Federal Reserve Banks) and securities dealers of foreign countries. in the United States. 4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds and notes payable in foreign currencies. 3.15 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign Currencies Millions of dollars, end of period 1978 1979 Item 1976 1977 Dec. Mar. June Sept. Dec. 1 Banks’ own liabilities............................................................................................ 781 925 2,235 1,781 1,963 2,323 1,855 2 Banks’ own claims1 ............................................................................................... 1,834 2,356 3,504 2,602 2,519 2,607 2,435 3 Deposits ................................................................................................................ 1,103 941 1,633 1,121 1,324 1,220 1,013 4 Other claims ........................................................................................................ 731 1,415 1,871 1,481 1,196 1,386 1,422 5 Claims of banks’ domestic customers2........................................................... 367 476 520 612 592 1. Includes claims of banks’ domestic customers through March 1978. Note: Data on claims exclude foreign currencies held by U.S. monetary au- 2. Assets owned by customers of the reporting bank located in the United States thorities. that represent claims on foreigners held by reporting banks for the accounts of their domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A59 3.16 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period Holder and type of liability 1977 1978 Aug. Sept Nov. Dec Jan. Feb.P 1 All foreigners ............................................................. 110,657 126,168 166,997 191,719 185,695 180,656 184,251 187,749 184,716 193,799 2 Banks’ own liabilities .............................................. 78,904 117,880 111,716 107,873 117,068 117,561 113,553 122,510 3 Demand deposits ................................................. 16,803 18,996 19.201 18,910 20,163 17,898 23,338 23,367 20,753 22,568 4 Time deposits1 ..................................................... 11,347 11,521 12,473 12,747 13,048 12,260 12,554 13,641 12,465 12,713 5 Other2 ..................................................................... 9,702 12,627 12,694 12,774 12,609 16,268 12,622 12,508 6 Own foreign offices3 ........................................... 37,563 73,595 65,811 64,941 68,567 64,286 67,713 74,721 7 Banks’ custody liabilities4 ..................................... 88,093 73,839 73,978 72,783 67,184 70,187 71,163 71,289 8 U.S. Treasury bills and certificates5 ............ 40,744 48,906 68.202 52,258 52,429 50,452 45,005 48,573 49,851 49,341 9 Other negotiable and readily transferable instruments6 .................................................. 17,396 19,297 19,312 20,141 19,802 19,270 18,800 19,407 10 Other ....................................................................... 2,495 2,284 2,237 2,190 2,376 2,344 2,512 2,542 11 Nonmonetary international and regional organizations7 .................................................... 2,607 2,909 2,389 2,717 2,352 1,205 12 Banks’ own liabilities .............................................. 906 603 491 566 753 710 444 394 13 Demand deposits ................................................. 290 231 330 154 161 143 214 260 164 153 14 Time deposits1 ..................................................... 205 139 84 77 82 82 152 89 78 15 Other2 ...................................................................... 492 372 248 342 298 191 163 16 Banks’ custody liabilities4 ..................................... 1,701 2,876 2,418 1,823 1,964 1,643 761 1,319 17 U.S. Treasury bills and certificates ............... 201 1,442 912 327 258 102 102 114 18 Other negotiable and readily transferable instruments6 .................................................. 1,499 1,433 1,505 1,494 1,605 1,538 659 1,206 19 Other ....................................................................... 1 1 1 2 101 2 20 Official institutions8 ................................................. 54,956 65,822 90,650 75,545 76,460 74,362 70,565 78,143 73,463 72,680 21 Banks’ own liabilities .............................................. 12,073 12,945 13,488 11,981 14,176 18,229 12,298 12,153 22 Demand deposits ................................................. 3,394 3,528 3,390 2,397 3,139 2,372 5,652 4,724 3,686 3,700 23 Time deposits1 ..................................................... 2,321 1,797 2,531 2,392 2,320 1,859 1,859 3,071 2,289 2,347 24 Other2 ...................................................................... 6,152 8,155 8,029 7,749 6,666 10,434 6,323 6,106 25 Banks’ custody liabilities4 ..................................... 78,577 62,600 62,972 62,381 56,388 59,914 61,164 60,527 26 U.S. Treasury bills and certificates5 ............ 47,820 67,415 50,146 50,842 49,411 43,921 47,666 48,864 48,234 27 Other negotiable and readily transferable instruments6 .................................................. 10,992 12,402 12,080 12,913 12,411 12,196 12,265 12,256 28 Other ....................................................................... 170 52 51 57 56 52 35 37 29 Banks9 .......................................................................... 42,335 57,720 95,469 88,947 86,155 92,716 88,694 91,490 100,244 30 Banks’ own liabilities .............................................. 52,935 90,448 83,800 81,055 87,511 83,699 86,062 94.721 31 Unaffiliated foreign banks ............................... 15,372 16,853 17,989 16,114 18,944 19,413 18,349 20,001 32 Demand deposits ............................................ 9,104 10,933 11,239 11,757 12,425 10,603 12,879 13,262 11,822 13,344 33 Time deposits1 ................................................. 2,297 2,040 1,468 1,525 1,752 1,551 1,624 1,663 1.259 1,297 34 Other2 ................................................................. 2,664 3,571 3,813 3,960 4,441 4,488 5,268 5,359 35 Own foreign offices3 ........................................... 37,563 73,595 65,811 64,941 68,567 64,286 67,713 74.721 36 Banks’ custody liabilities4 ..................................... 4,785 5,020 5,147 5,100 5,205 4,995 5,428 5,523 37 U.S. Treasury and certificates ........................ 300 384 406 400 451 422 533 566 38 Other negotiable and readily transferable instruments6 .................................................. 2,425 2,509 2,625 2,684 2,611 2,405 2,616 2,606 39 Other ....................................................................... 2,060 2,127 2,116 2,017 2,143 2,168 2,278 2,350 40 Other foreigners ....................................................... 16,020 17,227 17,379 17,750 18,254 18,560 18,559 19,161 41 Banks’ own liabilities .............................................. 12,990 13,884 13,937 14,271 14,627 14,924 14,749 15,242 42 Demand deposits ................................................. 4,015 4,304 4,242 4,602 4,439 4,779 4,594 5,121 5,080 5,371 43 Time deposits ....................................................... 6,524 7,546 8,353 8,753 8,894 8,769 8,991 8,755 8,828 8,991 44 Other2 ...................................................................... 394 529 604 724 1,043 1,048 840 880 45 Banks’ custody liabilities4 ..................................... 3,030 3,343 3,442 3,479 3,626 3,636 3,810 3,920 46 U.S. Treasury bills and certificates ............... 285 285 269 315 375 382 352 426 47 Other negotiable and readily transferable instruments6 .................................................. 2,481 2,953 3,103 3,050 3,175 3,131 3.260 3,339 48 Other ....................................................................... 264 105 70 114 76 123 199 154 49 Memo: Negotiable time certificates of deposit in custody for foreigners .............................. 11,007 11,099 11,264 11,346 10,821 10,974 10,787 11,395 1. Excludes negotiable time certificates of deposit, which are included in “Other 5. Includes nonmarketable certificates of indebtedness (including those payable negotiable and readily transferable instruments.” Data for time deposits prior to in foreign currencies through 1974) and Treasury bills issued to official institutions April 1978 represent short-term only. of foreign countries. 2. Includes borrowing under repurchase agreements. 6. Principally bankers acceptances, commercial paper, and negotiable time cer­ 3. U.S. banks: includes amounts due to own foreign branches and foreign sub­ tificates of deposit. sidiaries consolidated in “Consolidated Report of Condition” filed with bank reg­ 7. Principally the International Bank for Reconstruction and Development, and ulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign the Inter-American and Asian Development Banks. banks: principally amounts due to head office or parent foreign bank, and foreign 8. Foreign central banks and foreign central governments and the Bank for branches, agencies or wholly owned subsidiaries of head office or parent foreign International Settlements. bank. 9. Excludes central banks, which are included in “Official institutions.” 4. Financial claims on residents of the United States, other than long-term securities, held by or through reporting banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics □ April 1980 3.16 LIABILITIES TO FOREIGNERS Continued 1979 1980 Area and country 1976 1977 1978 Aug. Sept. Oct. Nov. Dec. Jan. Feb .p 1Total ......................................................................... 110,657 126,168 166,997 191,719 185,695 180,656 184,251 187,749' 184,716 193,799 2 Foreign countries ...................................................... 104,943 122,893 164,390 188,241 182,786 178,267 181,534 185,396' 183,511 192,085 3 Europe ................................................................................... 47,076 60,295 85,382 86,112 88,584 88,008 87,488 91,411' 87,109 86,305 4 Austria .............................................................................. 346 318 513 446 444 426 404 413 374 379 5 Belgium-Luxembourg .................................................. 2,187 2,531 2,552 2,714 2,920 2,710 2,786 2,364 2,118 2,404 6 Denmark ........................................................................... 356 770 1,946 1,412 1,100 1,001 1,166 1,092 955 587 7 Finland .............................................................................. 416 323 346 508 415 334 390 398 454 544 8 France ................................................................................ 4,876 5,269 9,208 9,985 10,499 9,340 10,301 10,401' 10,524 11,249 9 Germany ........................................................................... 6,241 7,239 17,286 10,434 13,129 13,154 10,801 12,935 10,345 8,953 10 Greece ................................................................................ 403 603 826 695 691 632 792 635 831 627 11 Italy .................................................................................... 3,182 6,857 7,674 9,678 8,551 8,481 8,345 7,782 7,779 7,394 12 Netherlands ..................................................................... 3,003 2,869 2,402 2,627 2,281 2,174 2,165 2,327 2,530 2,482 13 Norway .............................................................................. 782 944 1,271 1,320 1,402 1,393 1,407 1,267 1,229 1,159 14 Portugal ............................................................................. 239 273 330 411 554 620 595 557 550 438 15 Spain ................................................................................... 559 619 870 1,060 1,133 1,103 1,184 1,259 1,194 1,146 16 Sweden .............................................................................. 1,692 2,712 3,121 2,368 2,062 2,165 2,064 2,005 1,848 1,978 17 Switzerland ....................................................................... 9,460 12,343 18,560 15,717 16,642 16,643 17,206 18,501 17,271 17,529 18 Turkey ................................................................................ 166 130 157 160 135 150 145 120' 232 118 19 United Kingdom ............................................................. 10,018 14,125 14,265 22,579 22,622 24,138 24,043 24,665' 25,010 25,281 20 Yugoslavia ....................................................................... 189 232 254 149 142 147 147 266 157 149 21 Other Western Europe1 .............................................. 2,673 1,804 3,693 3,504 3,493 3,087 3,248 4,070' 3,445 3,455 22 U.S.S.R................................................................................ 51 98 82 80 52 53 39 52 46 41 23 Other Eastern Europe2 ............................................... 236 236 325 265 317 259 261 302 217 390 24 Canada ................................................................................... 4,659 4,607 6,966 8,376 8,319 8,644 7,280 7,379' 9,546 9,556 25 Latin America and Caribbean ....................................... 19,132 23,670 31,606 56,889 49,408 47,097 51,624 49,565' 50,407 57,161 26 Argentina .......................................................................... 1,534 1,416 1,484 1,761 1,935 1,693 1,573 1,582 1,635 1,697 27 Bahamas ........................................................................... 2,770 3,596 6,752 24,085 18,372 15,377 18,540 15,311' 16,261 21,802 28 Bermuda ............................................................................ 218 321 428 415 392 399 404 430' 445 560 29 Brazil ................................................................................. 1,438 1,396 1,125 1,040 1,198 994 1,051 1,005 1,402 1,155 30 British West Indies ....................................................... 1,877 3,998 5,991 13,367 11,202 11,372 12,534 11,049' 11,886 12,627 31 Chile ................................................................................... 337 360 399 459 420 425 356 469 396 471 32 Colombia .......................................................................... 1,021 1,221 1,756 2,378 2,188 2,243 2,377 2,617 2,882 2,840 33 Cuba ................................................................................... 6 6 13 6 9 7 12 13 10 5 34 Ecuador ............................................................................. 320 330 322 449 364 482 476 425 386 412 35 Guatemala3 ...................................................................... 416 320 335 361 374 414' 394 391 36 Jamaica3 ........................................................................... 52 67 175 113 74 76 95 90 37 Mexico ............................................................................... 2,870 2,876 3,417 3,658 3,549 3,528 3,666 4,096' 3,984 3,973 38 Netherlands Antilles ..................................................... 158 196 308 366 359 609 460 499 346 524 39 Panama .............................................................................. 1,167 2,331 2,968 3,049 3,336 3,926 4,290 4,483 4,724 4,646 40 Peru .................................................................................... 257 287 363 391 477 388 417 383 376 388 41 Uruguay ............................................................................. 245 243 231 222 217 217 185 202 215 210 42 Venezuela ......................................................................... 3,118 2,929 3,821 3,180 2,903 3,168 3,014 4,192 3,081 3,498 43 Other Latin America and Carribbean ................... 1,797 2,167 1,760 1,675 1,977 1,795 1,822 2,318' 1,887 1,872 44 Asia ......................................................................................... 29,766 30,488 36,473 32,219 32,505 30,615 31,058 32,898' 32,015 34,531 China 45 Mainland ....................................................................... 48 53 67 41 45 49 45 49 46 32 46 Taiwan .......................................................................... 990 1,013 502 1,027 1,231 1,339 1,413 1,393 1,386 1,567 47 Hong Kong ....................................................................... 894 1,094 1,256 1,571 1,634 1,542 1,624 1,672 1,696 1,776 48 India ................................................................................... 638 961 790 704 674 496 580 527 544 579 49 Indonesia .......................................................................... 340 410 449 317 463 555 478 504 743 693 50 Israel ................................................................................... 392 559 674 627 626 621 574 707' 504 496 51 Japan .................................................................................. 14,363 14,616 21,927 13,094 13,292 10,885 7,867 8,886' 9,417 10,689 52 Korea .................................................................................. 438 602 795 825 938 950 951 993' 960 1,016 53 Philippines ....................................................................... 628 687 644 603 632 598 671 800 729 772 54 Thailand ............................................................................ 277 264 427 330 421 304 415 281 408 284 55 Middle-East oil-exporting countries4 ...................... 9,360 8,979 7,529 11,306 10,688 11,313 14,564 15,212 14,073 14,995 56 Other Asia ....................................................................... 1,398 1,250 1,414 1,773 1,862 1,963 1,876 1,871 1,509 1,631 57 Africa ...................................................................................... 2,298 2,535 2,886 3,818 3,194 3,141 3,105 3,239' 3,331 3,170 58 Egypt ................................................................................. 333 404 404 302 245 294 380 475 449 332 59 Morocco ........................................................................... 87 66 32 40 40 30 36 33' 50 33 60 South Africa .................................................................... 141 174 168 174 235 194 213 184 269 195 61 Zaire ................................................................................... 36 39 43 49 73 112 104 110 128 93 62 Oil-exporting countries5 .............................................. 1,116 1,155 1,525 2,441 1,832 1,711 1,513 1,635' 1,503 1,665 63 Other Africa .................................................................... 585 698 715 811 768 800 859 804 932 852 64 Other countries ................................................................... 2,012 1,297 1,076 826 776 762 980 904 1,104 1,363 65 Australia ........................................................................... 1,905 1,140 838 621 549 528 714 684 853 1,054 66 All other ........................................................................... 107 158 239 205 227 234 266 220' 252 309 67 Nonmonetary international and regional organizations .............................................................. 5,714 3,274 2,607 3,479 2,909 2,389 2,717 2,352' 1,205 1,713 68 International .................................................................... 5,157 2,752 1,485 2,427 1,810 1,343 1,504 1,232' 823 613 69 Latin American regional ............................................ 267 278 808 793 824 755 790 813 90 786 70 Other regional6 .............................................................. 290 245 314 258 275 291 423 308 292 315 1. Includes the Bank for International Settlements. Beginning April 1978, also 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and includes Eastern European countries not listed in line 23. United Arab Emirates (Trucial States). 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­ 5. Comprises Algeria, Gabon, Libya, and Nigeria. ocratic Republic, Hungary, Poland, and Romania. 6. Asian, African, Middle Eastern, and European regional organizations, except 3. Included in “Other Latin America and Caribbean” through March 1978. the Bank for International Settlement, which is included in “Other Western Europe.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A61 3.17 BANKS’ OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1979 1980 Area and country 1976 1977 1978 Aug. Sept. Oct. Nov. Dec. Jan. Feb .p 1Total .......................................................................... 79,301 90,206 115,307 125,633 127,247 121,086 124,427 133,586' 126,429 130,623 2 Foreign countries ...................................................... 79,261 90,163 115,251 125,582 127,196 121,049 124,383 133,554' 126,394 130,590 3 Europe ................................................................................... 14,776 18,114 24,230 25,774 28,380 26,178 25,890 28,313r 24,772 25,433 4 Austria .............................................................................. 63 65 140 223 191 190 168 284' 256 315 5 Belgium-Luxembourg .................................................. 482 561 1,200 1,483 1,737 1,559 1,402 1,328' 1,386 1,524 6 Denmark ............................................................................ 133 173 254 141 166 116 149 147 127 156 7 Finland .............................................................................. 199 172 305 247 227 230 182 202 264 237 8 France ................................................................................ 1,549 2,082 3,742 3,260 3,766 2,736 3,305 3,302' 3,046 3,197 9 Germany ........................................................................... 509 644 895 883 1,840 1,309 1,396 1,159r 915 1,209 10 Greece ................................................................................ 279 206 164 267 194 282 171 154 136 141 11 Italy .................................................................................... 993 1,334 1,508 1,474 1,566 1,424 1,259 1,572' 1,344 1,369 12 Netherlands ...................................................................... 315 338 675 559 631 618 603 514 472 610 13 Norway .............................................................................. 136 162 299 227 238 236 257 276 178 175 14 Portugal ............................................................................. 88 175 171 297 325 349 352 330 288 213 15 Spain ................................................................................... 745 722 1,110 969 1,126 1,117 1,050 1,051 939 1,015 16 Sweden .............................................................................. 206 218 537 482 459 603 548 542 733 702 17 Switzerland ....................................................................... 379 564 1,283 714 1,179 1,171 1,232 1,162 935 1,359 18 Turkey ................................................................................ 249 360 283 148 119 141 151 149 128 131 19 United Kingdom ............................................................. 7,033 8,964 10,156 12,347 12,394 11,839 11,426 13,789' 11,382 10,770 20 Yugoslavia ....................................................................... 234 311 363 571 584 578 582 611 569 565 21 Other Western Europe1 .............................................. 85 86 122 216 247 154 185 175 204 227 22 U.S.S.R................................................................................ 485 413 366 292 326 349 311 290 263 265 23 Other Eastern Europe2 ............................................... 613 566 657 974 1,064 1,175 1,160 1,277 1,206 1,251 24 Canada ................................................................................... 3,319 3,355 5,152 5,017 4,787 4,335 4,368 4,347' 4,230 4,344 25 Latin America and Caribbean ...................................... 38,879 45,850 57,166 62,932 62,465 59,225 62,286 67,632' 64,325 65,872 26 Argentina .......................................................................... 1,192 1,478 2,281 3,259 3,285 3,653 4,157 4,415' 4,666 4,900 27 Bahamas ............................................................................ 15,464 19,858 21,515 19,931 19,146 17,393 16,046 18,681' 19,674 18,315 28 Bermuda ............................................................................ 150 232 184 167 172 485 462 496' 432 314 29 Brazil ................................................................................. 4,901 4,629 6,251 6,548 7,286 7,567 7,497 7,767' 7,509 8,404 30 British West Indies ....................................................... 5,082 6,481 9,391 10,723 9,176 6,742 9,131 9,762' 7,836 10,086 31 Chile ................................................................................... 597 675 972 1,173 1,323 1,396 1,349 1,438 1,377 1,430 32 Colombia .......................................................................... 675 671 1,012 1,220 1,259 1,451 1,523 1,614' 1,656 1,699 33 Cuba ................................................................................... 13 10 * 6 4 4 4 4 4 4 34 Ecuador ............................................................................. 375 517 705 921 943 1,000 1,007 1,025 1,001 1,025 35 Guatemala3 ...................................................................... 94 100 103 110 115 134 114 105 36 Jamaica3 ................................................................. 40 30 32 29 34 47 51 72 37 Mexico ............................................................................... 4,822 4,909 5,423 7,699 8,430 8,416 8,336 8,971' 8,833 8,864 38 Netherlands Antilles ..................................................... 140 224 273 342 301 230 227 248' 324 397 39 Panama ............................................................................... 1,372 1,410 3,094 4,400 4,523 4,268 5,774 5,986 4,418 3,831 40 Peru .................................................................................... 933 962 918 730 716 607 604 652 570 634 41 Uruguay ............................................................................. 42 80 52 66 60 72 71 105 100 83 42 Venezuela ......................................................................... 1,828 2,318 3,474 4,040 4,176 4,349 4,392 4,689' 4,241 4,195 43 Other Latin America and Caribbean ..................... 1,293 1,394 1,487 1,577 1,531 1,455 1,557 1,598' 1,519 1,515 44 19,204 19,236 25,494 28,963 28,546 28,457 29,057 30,624 30,226 32,208 China 45 Mainland ....................................................................... 3 10 4 29 25 55 31 35' 28 51 46 Taiwan .......................................................................... 1,344 1,719 1,499 1,970 1,935 1,930 1,805 1,821 1,705 1,691 47 Hong Kong ....................................................................... 316 543 1,579 1,788 1,859 1,737 1,794 1,804 1,810 2,127 48 India ................................................................................... 69 53 54 75 74 68 69 92 133 90 49 Indonesia .......................................................................... 218 232 143 156 140 147 135 131 117 128 50 Israel ................................................................................... 755 584 870 857 882 891 842 990 823 787 51 Japan ................................................................................. 11,040 9,839 12,686 15,050 14,656 14,983 16,155 16,925' 17,052 18,787 52 Korea ................................................................................. 1,978 2,336 2,282 3,612 3,750 3,839 3,732 3,796' 4,100 4,339 53 Philippines ....................................................................... 719 594 680 793 638 724 642 737 640 645 54 Thailand ............................................................................ 442 633 758 919 1,036 956 972 935 974 993 55 Middle East oil-exporting countries4 ...................... 1,459 1,746 3,135 1,689 1,914 1,190 1,107 1,544 1,394 1,211 56 Other Asia ....................................................................... 863 947 1,804 2,026 1,637 1,939 1,776 1,813' 1,450 1,359 57 Africa ...................................................................................... 2,311 2,518 2,221 1,969 2,101 1,926 1,865 1,785 1,865 1,775 58 Egypt .................................................................................. 126 119 107 126 120 122 91 112 116 154 59 Morocco ............................................................................ 27 43 82 31 23 66 73 103 103 109 60 South Africa .................................................................... 957 1,066 860 730 704 602 565 445 417 342 61 Zaire ................................................................................... 112 98 164 151 149 135 135 142 146 144 62 Oil-Exporting Countries5 ............................................ 524 510 452 398 563 435 442 391 486 452 63 Other .................................................................................. 565 682 556 533 542 566 559 592 598 574 64 Other Countries ................................................................. 772 1,090 988 926 916 928 916 853 976 959 65 Australia ............................................................................ 597 905 877 756 744 748 741 673 801 789 66 All other ............................................................................ 175 186 111 170 172 180 176 180 175 170 67 Nonmonetary international and regional organizations6 ............................................................. 40 43 56 51 50 36 44 32 35 33 1. Includes the Bank for International Settlements. Beginning April 1978, also 5. Comprises Algeria, Gabon, Libya, and Nigeria. includes Eastern European countries not listed in line 23. 6. Excludes the Bank for International Settlements, which is included in “Other 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­ Western Europe.” ocratic Republic, Hungary, Poland, and Romania. 3. Included in “Other Latin America and Caribbean” through March 1978. Note. Data for period prior to April 1978 include claims of banks’ domestic 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and customers on foreigners. United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics □ April 1980 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 1980 Type of claim 1976 Aug. Sept. Oct. Nov. Feb./7 1 Total ....................................................................... 79,301 90,206 126,485 145,975 153,534 2 Banks’ own claims on foreigners .............................. 115,307 125,633 127,247 121,086 124,427 133,586 126,429 130,623 3 Foreign public borrowers ........................................... 10,130 12,510 13,808 14,103 13,657 15,054 14,751 15,004 4 Own foreign offices1 ..................................................... 41,471 40,237 39,493 38,164 43,628 47,056 45,328 46,606 5 Unaffiliated foreign banks .......................................... 40,420 45,048 46,010 39,799 37,860 40,902 35,993 38,776 6 Deposits .......................................................................... 5,458 7,549 7,394 6,745 5,680 6,217 4,958 5,069 7 Other ............................................................................. 34,962 37,498 38,616 33,054 32,180 34,685 31,035 33,707 8 All other foreigners ....................................................... 23,286 27,838 27,935 29,021 29,282 30,574 30,358 30,237 9 Claims of banks’ domestic customers2 ................... 11,178 18,729 19,948 10 Deposits ............................................................................. 480 975 955 11 Negotiable and readily transferable instruments3 5,344 11,580 12,974 12 Outstanding collections and other claims4 ............ 5,756 6,176 5,353 6,174 6,019 13 Memo: Customer liability on acceptances ............ 14,919 19,733 21,173 Dollar deposits in banks abroad, reported by non­ banking business enterprises in the United States5 .......................................................................... 12,804 20,808 18,734 21,615 1. U.S. banks: includes amounts due from own foreign branches and foreign 4. Data for March 1978 and for period prior to that are outstanding collections subsidiaries consolidated in “Consolidated Report of Condition” filed with bank only. regulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign 5. Includes demand and time deposits and negotiable and nonnegotiable certif­ banks: principally amounts due from head office or parent foreign bank, and icates of deposit denominated in U.S. dollars issued by banks abroad. For de­ foreign branches, agencies, or wholly owned subsidiaries of head office or parent scription of changes in data reported by nonbanks, see July 1979 Bulletin, p. 550. foreign bank. 2. Assets owned by customers of the reporting bank located in the United States Note: Beginning April 1978, data for banks’ own claims are given on a monthly that represent claims on foreigners held by reporting banks for the account of their basis, but the data for claims of banks’ own domestic customers are available on domestic customers. a quarterly basis only. 3. Principally negotiable time certificates of deposit and bankers acceptances. 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 Sept. Dec. Mar. June Sept. Dec. 1 Total .......................................................................................................................... 60,096 73,632 71,528 77,662 87,471 86,170 By borrower 2 Maturity of 1 year or less1 ....................................................................................................... 47,230 58,363 55,363 60,014 68,119 65,042 3 Foreign public borrowers .................................................................................................... 3,709 4,589 4,643 4,594 6,051 6,894 4 All other foreigners ................................................................................................................ 43,521 53,774 50,720 55,420 62,068 58,148 5 Maturity of over 1 year1 ............................................................................................................ 12,866 15,269 16,165 17,648 19,352 21,128 6 Foreign public borrowers .................................................................................................... 4,230 5,343 5,944 6,427 7,635 8,074 7 All other foreigners ................................................................................................................ 8,635 9,926 10,221 11,221 11,718 13,054 By area Maturity of 1 year or less1 8 Europe ........................................................................................................................................ 10,513 15,126 12,376 14,019 16,782 15,203 9 Canada ........................................................................................................................................ 1,953 2,670 2,512 2,703 2,466 1,843 10 Latin America and Caribbean ........................................................................................... 18,624 20,927 21,651 23,090 25,584 24,774 11 Asia .............................................................................................................................................. 14,014 17,575 16,993 18,199 21,365 21,657 12 Africa ........................................................................................................................................... 1,535 1,496 1,290 1,438 1,399 1,072 13 All other2 ................................................................................................................................... 591 569 541 565 523 493 Maturity of over 1 year1 14 Europe ........................................................................................................................................ 3,102 3,142 3,103 3,484 3,665 4,142 15 Canada ........................................................................................................................................ 794 1,426 1,456 1,221 1,371 1,453 16 Latin America and Caribbean ........................................................................................... 6,877 8,452 9,325 10,265 11,773 12,792 17 Asia .............................................................................................................................................. 1,303 1,399 1,471 1,881 1,732 1,920 18 Africa ........................................................................................................................................... 580 636 629 614 623 652 19 All other2 ................................................................................................................................... 211 214 180 183 189 169 1. Remaining time to maturity. Note. The first available data are for June 1978. 2. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A63 3.20 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks' Billions of dollars, end of period 1978 1979 Area or Country 1975 1976 1977 Mar. June2 Sept. Dec. Mar. June Sept. Dec. 1Total ................................................................................................ 167.1 206.8 241.4 244.7 247.1 247.6 266.1 263.8 275.3 293.7 304.3 2 G-10 countries and Switzerland .............................................................. 88.0 100.3 116.4 116.9 112.8 113.7 124.9 119.1 125.3 135.8 139.2 3 Belgium-Luxembourg ............................................................................. 5.3 6.1 8.4 8.3 8.3 8.4 9.0 9.4 9.7 10.7 11.1 4 France ...................................................................... .................................. 8.5 10.0 11.0 11.4 11.4 11.7 12.2 11.7 12.7 12.0 11.6 5 Germany ...................................................................................................... 7.7 8.7 9.6 9.0 9.1 9.7 11.4 10.5 10.8 12.9 12.0 6 Italy ............................................................................................................. 5.2 5.8 6.5 6.0 6.4 6.1 6.6 5.7 6.1 6.1 6.3 7 Netherlands ................................................................................................ 2.8 2.8 3.5 3.4 3.4 3.5 4.4 3.9 4.0 4.7 4.8 8 Sweden ......................................................................................................... 1.0 1.2 1.9 2.0 2.1 2.2 2.1 2.0 2.0 2.3 2.4 9 Switzerland ................................................................................................. 2.4 3.0 3.6 4.0 4.1 4.3 5.4 4.5 4.8 5.0 4.8 10 United Kingdom ....................................................................................... 36.3 41.7 46.5 46.7 45.0 44.4 47.3 46.5 50.4 53.8 55.9 11 Canada ......................................................................................................... 3.8 5.1 6.4 7.0 5.1 5.0 6.0 5.9 5.5 6.0 7.7 12 Japan ............................................................................................................ 14.9 15.9 18.8 19.1 17.9 18.6 20.6 19.0 19.4 22.3 22.4 13 Other developed countries ........................................................................ 10.8 15.0 18.6 19.7 19.4 18.6 19.4 18.2 18.2 19.7 19.9 14 Austria ......................................................................................................... .7 1.2 1.3 1.5 1.5 1.5 1.7 1.7 1.8 2.0 2.0 15 Denmark ...................................................................................................... .6 1.0 1.6 1.8 1.7 1.9 2.0 2.0 1.9 2.0 2.2 16 Finland ......................................................................................................... .9 1.1 1.2 1.2 1.1 1.0 1.2 1.2 1.1 1.2 1.2 17 Greece .......................................................................................................... 1.4 1.7 2.2 2.1 2.3 2.2 2.3 2.3 2.2 2.3 2.4 18 Norway ......................................................................................................... 1.4 1.5 1.9 1.9 2.1 2.1 2.1 2.1 2.1 2.3 2.3 19 Portugal ....................................................................................................... .3 .4 .6 .7 .6 .5 .6 .6 .5 .7 .7 20 Spain ............................................................................................................. 1.9 2.8 3.6 3.6 3.6 3.5 3.4 3.0 3.0 3.3 3.5 21 Turkey .......................................................................................................... .6 1.3 1.5 1.4 1.4 1.5 1.5 1.4 1.4 1.4 1.4 22 Other Western Europe .......................................................................... .6 .7 .9 1.5 1.2 .9 1.3 1.1 1.0 1.5 1.4 23 South Africa .............................................................................................. 1.2 2.2 2.4 2.5 2.4 2.2 2.0 1.7 1.8 1.7 1.3 24 Australia ...................................................................................................... 1.3 1.2 1.4 1.5 1.4 1.3 1.4 1.3 1.4 1.3 1.3 25 Oil-exporting countries3 ............................................................................. 6.9 12.6 17.6 19.2 19.2 20.4 22.7 22.6 22.7 23.4 22.8 26 Ecuador ....................................................................................................... .4 .7 1.1 1.3 1.4 1.6 1.6 1.5 1.6 1.6 1.7 27 Venezuela ................................................................................................... 2.3 4.1 5.5 5.5 5.6 6.2 7.2 7.2 7.6 7.9 8.7 28 Indonesia .................................................................................................... 1.6 2.2 2.2 2.1 1.9 1.9 2.0 1.9 1.9 1.9 1.9 29 Middle East countries ............................................................................. 1.6 4.2 6.9 8.3 8.4 8.7 9.5 9.4 9.0 9.2 8.0 30 African countries ...................................................................................... 1.0 1.4 1.9 2.0 1.9 2.0 2.5 2.6 2.6 2.8 2.6 31 Non-oil developing countries .................................................................... 34.1 44.2 48.7 49.7 49.1 49.6 52.5 53.8 56.2 59.1 63.2 Latin America 32 Argentina ..................................................................................................... 1.7 1.9 2.9 3.0 3.0 2.9 3.0 3.1 3.5 4.1 5.1 33 Brazil ........................................................................................................... 8.0 11.1 12.7 13.0 13.3 14.0 14.9 14.9 15.1 15.1 15.3 34 Chile ............................................................................................................. .5 .8 .9 1.1 1.3 1.3 1.6 1.7 1.8 2.2 2.5 35 Colombia .................................................................................................... 1.2 1.3 1.3 1.2 1.3 1.3 1.4 1.5 1.5 1.7 2.2 36 Mexico ......................................................................................................... 9.0 11.7 11.9 11.2 11.0 10.7 10.8 10.9 11.0 11.7 12.3 37 Peru ............................................................................................................... 1.4 1.8 1.9 1.7 1.8 1.8 1.7 1.6 1.4 1.4 1.5 38 Other Latin America .............................................................................. 2.5 2.8 2.6 3.4 3.3 3.4 3.6 3.5 3.3 3.6 3.7 Asia China 39 Mainland .................................................................................................. .0 .0 .0 .0 .0 .0 .0 .1 .1 .1 .1 40 Taiwan .................................................................................................... 1.7 2.4 3.1 3.1 2.5 2.4 2.9 3.1 3.3 3.5 3.5 41 India ............................................................................................................. .2 .2 .3 .3 .2 .3 .2 .2 .2 .2 .2 42 Israel ............................................................................................................. .9 1.0 .9 .8 .7 .7 1.0 1.0 .9 1.0 1.3 43 Korea (South) ............................................................................................ 2.4 3.1 3.9 3.6 3.6 3.5 3.9 4.2 5.0 5.3 5.5 44 Malaysia4 .................................................................................................... .3 .5 .7 .7 .6 .6 .6 .6 .7 .7 .9 45 Philippines ................................................................................................. 1.7 2.2 2.5 2.6 2.7 2.8 2.8 3.2 3.7 3.7 4.3 46 Thailand ...................................................................................................... .7 .7 1.1 1.1 1.1 1.1 1.2 1.2 1.4 1.6 1.6 47 Other Asia .................................................................................................. .5 .5 .4 .4 .3 .3 .2 .3 .4 .3 .4 Africa 48 Egypt ............................................................................................................ .4 .4 .3 .3 .3 .4 .4 .5 .7 .6 .6 49 Morocco ...................................................................................................... .1 .3 .5 .4 .5 .5 .6 .6 .5 .5 .6 50 Zaire ............................................................................................................. .3 .2 .3 .3 .2 .2 .2 .2 .2 .2 .2 51 Other Africa4 ............................................................................................. .8 1.2 .7 1.4 1.2 1.3 1.4 1.4 1.5 1.6 1.7 52 Eastern Europe ............................................................................................. 3.7 5.2 6.3 6.3 6.4 6.6 6.9 6.7 6.7 7.2 7.8 53 U.S.S.R.......................................................................................................... 1.0 1.5 1.6 1.4 1.4 1.4 1.3 1.1 .9 .9 1.0 54 Yugoslavia .................................................................................................. .6 .8 1.1 1.2 1.3 1.3 1.5 1.6 1.7 1.8 1.8 55 Other ............................................................................................................ 2.1 2.9 3.7 3.7 3.7 3.9 4.1 4.0 4.1 4.6 5.0 56 Offshore banking centers .......................................................................... 18.9 24.7 26.1 28.8 32.2 30.0 30.6 33.5 36.4 37.9 39.7 57 Bahamas ...................................................................................................... 7.3 10.1 9.8 11.3 12.4 11.7 10.4 12.4 14.5 13.0 13.5 58 Bermuda ...................................................................................................... .5 .5 .6 .6 .7 .7 .7 .6 .7 .7 .7 59 Cayman Islands and other British West Indies ............................ 2.5 3.8 3.8 4.6 6.7 6.4 6.9 6.8 7.0 9.2 9.5 60 Netherlands Antilles ................................................................................ .6 .6 .7 .7 .6 .6 .8 .8 1.0 1.1 1.2 61 Panama ......................................................................................................... 2.6 3.0 3.1 3.1 3.3 3.1 3.0 3.4 3.5 3.0 3.8 62 Lebanon ...................................................................................................... .2 .1 .2 .2 .1 .1 .1 .1 .1 .2 .2 63 Hong Kong .................................................................................................. 1.6 2.2 3.7 4.1 4.1 4.0 4.3 4.8 4.9 5.5 6.0 64 Singapore ..................................................................................................... 3.6 4.4 3.7 3.9 3.8 2.9 3.9 4.2 4.2 4.9 4.5 65 Others6 ......................................................................................................... .1 .0 .5 .3 .5 .5 .5 .4 .4 .4 .4 66 Miscellaneous and unallocated7 .............................................................. 4.7 5.0 5.3 5.9 8.1 8.6 9.1 9.5 9.9 10.6 11.8 1. The banking offices covered by these data are the U.S. offices and foreign in this table include only banks' own claims payable in dollars. For earlier dates branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. the claims of the U.S. offices also include customer claims and foreign currency Offices not covered include (1) U.S. agencies and branches of foreign banks, and claims (amounting in June 1978 to $10 billion). (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are 3. Includes Algeria, Bahrain, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Oman, adjusted to exclude the claims on foreign branches held by a U.S. office or another Qatar, Saudi Arabia, and United Arab Emirates in addition to countries shown foreign branch of the same banking institution. The data in this table combine individually. foreign branch claims in table 3.13 (the sum of lines 7 through 10) with the claims 4. Foreign branch claims only through December 1976. of U.S. offices in table 3.17 (excluding those held by agencies and branches of 5. Excludes Liberia. foreign banks and those constituting claims on own foreign branches). However, 6. Foreign branch claims only. see also footnote 2. 7. Includes New Zealand, Liberia, and international and regional organizations. 2. For June 1978 and subsequent dates, the claims of the U.S. offices Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics □ April 1980 3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars Country or area 1978 1979 Jan.- Feb. Aug. Sept. Nov. Dec. Holdings (end of period)1 1 Estimated total2 ................................................ 44,938 50,306 49,575 50,257 50,888 49,779 50,306 51,660 52,036 2 Foreign countries2 ........................................... 39,817 44,875 44,979 45,060 45,206 44,276 44,875 45,609 45,392 3 Europe2 .............................................................. 17,072 23,705 22,558 22,599 22,692 21,910 23,705 24,183 23,737 4 Belgium-Luxembourg ............................... 19 60 24 65 65 60 60 60 55 5 Germany2 ....................................................... 8,705 12,937 10,952 10,953 11,082 11,337 12,937 12,913 12,629 6 Netherlands .................................................. 1,358 1.466 1,577 1,667 1,660 1,490 1,466 1,407 1,414 7 Sweden ........................................................... 285 647 525 588 600 593 647 640 641 8 Switzerland ..................................................... 977 1,868 2,048 2,496 2,427 1,961 1,868 1,894 1,564 9 United Kingdom .......................................... 5,373 6,236 6,895 6,193 6,191 5,955 6,236 6,755 6,921 10 Other Western Europe ............................ 354 491 538 637 666 513 491 514 512 11 Eastern Europe ........................................... 12 Canada ................................................................ 152 232 233 233 235 234 232 231 389 13 Latin America and Caribbean .................... 416 546 539 539 541 539 546 546 547 14 Venezuela ..................................................... 144 183 183 183 183 183 183 183 183 15 Other Latin American and Caribbean 110 200 192 192 194 192 200 200 201 16 Netherlands Antilles .................................. 162 163 165 165 164 164 163 163 164 17 Asia ...................................................................... 21,488 19,804 20,960 21,000 21,050 21,005 19,804 20,061 20,130 18 Japan .............................................................. 11,528 11,175 12,818 12,789 12,591 12,502 11,175 10,844 10,420 19 Africa ................................................................... 691 591 691 691 691 591 591 591 591 20 All other ............................................................. -3 -3 -3 -3 -3 -3 -3 -3 -3 21 Nonmonetary international and regional organizations ........................................... 5,121 5,431 4,596 5,197 5,682 5,503 5,431 6,051 6,644 22 International ..................................................... 5,089 5,388 4,551 5,150 5,636 5,463 5,388 6,016 6,592 23 Latin American regional .............................. 33 40 46 46 46 40 40 35 53 Transactions (net purchases, or sales (-), during period) 24 Total2 ........................................................................ 6,297 5,368 1,733 584 681 632 -1,110 527 1,357 376 25 Foreign countries2 .............................................................. 5,921 5,058 516 435 81 146 -930 600 734 -218 26 Official institutions ......................................................... 3,727 1,781 222 515 101 56 -1,037 547 481 -259 27 Other foreign2 ................................................................. 2,195 3,277 295 -81 -20 89 108 53 254 41 28 Nonmonetary international and regional organizations .............................................................. 375 311 1,218 149 600 487 -180 -73 624 594 Memo: Oil-exporting countries 29 Middle East3 ......................................................................... -1,785 -1,015 1,050 394 72 299 64 168 550 500 30 Africa4 ..................................................................................... 329 -100 -100 1. Estimated official and private holdings of marketable U.S. Treasury securities 2. Beginning December 1978, includes U.S. Treasury notes publicly issued to with an original maturity of more than 1 year. Data are based on a benchmark private foreign residents. survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and nonmarketable U.S. Treasury bonds and notes held by official institutions of for­ United Arab Emirates (Trucial States). eign countries. 4. Comprises Algeria, Gabon, Libya, and Nigeria. 3.22 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1979 1980 Assets 1977 1978 1979 Sept. Oct. Nov. Dec. Jan. Feb. Mar .p 1 Deposits ................................................................................. 424 367 429 347 351 490 429 439 450 468 Assets held in custody 2 U.S. Treasury securities1 ................................................. 91,962 117,126 95,075 100,383 97,965 90,874 95,075 97,116 96,200 89,290 3 Earmarked gold2 ................................................................ 15,988 15,463 15,169 15,294 15,253 15,230 15,169 15,138 15,109 15,087 1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S. Note. Excludes deposits and U.S. Treasury securities held for international and Treasury securities payable in dollars and in foreign currencies. regional organizations. Earmarked gold is gold held for foreign and international 2. The value of earmarked gold increased because of the changes in par value accounts and is not included in the gold stock of the United States. of the U.S. dollar in May 1972 and in October 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Investment Transactions A65 3.23 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1980 1979 1980 Transactions, and area or country 1978 1979 Jan.- Feb./7 Aug. Sept. Oct. Nov. Dec. Jan. Feb./7 U.S. corporate securities Stocks 1 Foreign purchases .............................................................. 20,142 22,594' 7,540 2,382 2,074 2,385 1,876 2,359 3,104 4,436 2 Foreign sales ........................................................................ 17,723 20,975' 5,777 2,224 2,023 2,372 1,687 2,182 2,417 3,360 3 Net purchases, or sales (-)....................................... 2,420 1,618' 1,762 158 51 13 189 177 687 1,075 4 Foreign countries ...................................................... 2,466 1,604 1,763 156 58 13 192 173 686 1,077 5 Europe ................................................................................... 1,283 216 1,319 -48 -107 -34 77 75 506 813 6 France ................................................................................ 47 122 204 19 -20 -48 -18 8 71 133 7 Germany ........................................................................... 620 -221 86 -30 -37 -32 -18 -10 35 51 8 Netherlands ...................................................................... -22 -71 -32 -3 * 38 12 -25 8 -41 9 Switzerland ....................................................................... -585 -519 528 -87 -64 -68 -148 -68 153 375 10 United Kingdom ............................................................. 1,230 964 506 97 19 83 278 155 215 291 11 Canada ................................................................................... 74 550 165 78 145 67 14 47 40 125 12 Latin America and Caribbean ...................................... 151 -18 127 45 -8 -93 -7 40 92 35 13 Middle East1 ......................................................................... 781 656 66 44 41 59 133 32 15 50 14 Other Asia ........................................................................... 187 207 88 34 -12 18 -29 -21 30 58 15 Africa ...................................................................................... -13 -14 -1 -4 -2 -1 1 -3 * -1 16 Other countries ................................................................... 3 7 -1 7 1 -3 2 2 2 -3 17 Nonmonetary international and regional organizations ...................................................... -46 15 -1 2 -7 * -3 4 1 -2 Bonds2 18 Foreign purchases .............................................................. 7,975 8,790 2,084 729 398 827 732 964 1,149 935 19 Foreign sales ......................................................................... 5,517 7,544 1,088 673 288 639 913 550 494 594 20 Net purchases, or sales (-)....................................... 2,458 1,246 996 56 110 188 -181 414 655 341 21 Foreign countries ...................................................... 2,049 1,347' 799 71 23 48 -118 429 523 276 22 Europe ................................................................................... 908 675 246 -5 19 88 -205 33 205 41 23 France ................................................................................ 30 11 8 — 3> -1 1 11 1 8 * 24 Germany ............................................................................ 68 83 2 -10 -1 -7 2 2 -5 6 25 Netherlands ...................................................................... 12 -202 -33 -19 -2 -7 -15 -20 -3 -30 26 Switzerland ....................................................................... -100 -61 13 -8 4 * -53 7 6 8 27 United Kingdom ............................................................. 930 816 266 24 23 103 -124 36 195 71 28 Canada ................................................................................... 102 90 53 9 17 8 -1 -16 25 28 29 Latin America and Caribbean ...................................... 98 112 23 10 -4 6 12 15 14 10 30 Middle East1 ......................................................................... 810 374 461 50 -7 -39 71 406 280 181 31 Other Asia ............................................................................ 131 94 5 7 -4 -16 5 -10 * 5 32 Africa ...................................................................................... -1 1 2 * 1 * * * * 2 33 Other countries ................................................................... 1 1 8 1 8 34 Nonmonetary international and regional organizations ...................................................... 409 -102 197 -14 87 140 -63 -14 132 65 Foreign securii. „s 35 Stocks, net purchases, or sales (-) ............................ 527 -993 -659 -117 -338 -198 -84 -130 -233 -426 36 Foreign purchases .......................................................... 3,666 4,512 1,429 377 420 466 365 406 624 804 37 Foreign sales .................................................................... 3,139 5,504 2,088 494 758 663 449 536 858 1,230 38 Bonds, net purchases, or sales (-) ............................ -4,052 -3,985' -128 -543 -725 -75 -335 -295' -72 -56 39 Foreign purchases .......................................................... 11,043 12,379' 2,653 1,575 829 1,081 1,080 1,124 1,279 1,374 40 Foreign sales .................................................................... 15,094 16,364' 2,781 2,118 1,554 1,156 1,415 1,419' 1,351 1,430 41 Net purchases, or sales (—) of stocks and bonds..... -3,525 -4,978' -787 -660 -1,063 -273 -420 -425' -305 -482 42 Foreign countries ...................................................... -3,338 -4,218' -865 -577 -914 -277 -301 -563' -382 -483 43 Europe ................................................................................... -64 -1,730' 53 -290 -120 -38 -119 -282 176 -123 44 Canada ................................................................................... -3,238 -2,676' -742 -128 -891 -358 -97 -142' -330 -412 45 Latin America and Caribbean ....................................... 201 389 107 12 * 11 29 -14 5 101 46 Asia ......................................................................................... 350 -212 -263 -172 92 112 -118 -128 -228 -35 47 Africa ...................................................................................... -441 -14 -3 -1 * -6 1 2 -2 -1 48 Other countries ................................................................... -146 25 -17 2 5 2 3 3 -4 -13 49 Nonmonetary international and regional organizations ...................................................... -187 -760 78 -83 -150 4 -118 138 78 1 1. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, 2. Includes state and local government securities, and securities of U.S. gov- Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). ernment agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics □ April 1980 3.24 LIABILITIES TO UN AFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1979 Type, and area or country 1976 1977 1978' Sept. June Sept. Dec. 1 Total .................................................................... 10,099 14,676 11,870 15,164 2 Payable in dollars ........................................... 9,390 10,284 11,400 11,044 11,955 11,369 12,415 12,477 3 Payable in foreign currencies2 ................... 709 801 3,276 825 831 2,896 2,749 2,895 By type 4 Financial liabilities ......................................... 6,145 5,894 5,781 5,881 5 Payable in dollars ....................................... 3,745 3,705 3,735 3.738 6 Payable in foreign currencies ................ 2,400 2,190 2,046 2,143 7 Commercial liabilities ................................... 8,531 8,371 9,384 9,491 8 Trade payables ............................................ 3,984 3,484 4,244 4,015 9 Advance receipts and other liabilities . 4,547 4,886 5,140 5,476 10 Payable in dollars ........................................... 7,655 7,664 8.739 11 Payable in foreign currencies .................... 876 707 753 By area or country Financial liabilities 12 Europe ........................................................... 3,834 3,570 3,394 3,426 13 Belgium-Luxembourg .......................... 287 264 313 276 14 France ........................................................ 162 138 134 125 15 Germany .................................................... 366 305 271 370 16 Netherlands .............................................. 389 422 378 407 17 Switzerland ............................................... 248 239 231 185 18 United Kingdom ..................................... 2,054 1,992 1,852 1,866 19 Canada ........................................................... 242 258 292 311 20 Latin America and Caribbean ............... 1,283 1,279 1,325 1,381 21 Bahamas .................................................... 426 411 442 345 22 Bermuda ................................................... 56 41 37 37 23 Brazil ......................................................... 10 13 19 14 24 British West Indies .............................. 127 136 127 139 25 Mexico ..................................................... 102 101 131 121 26 Venezuela ................................................ 49 55 65 68 27 Asia ................................................................ 775 778 759 752 28 Japan ........................................................ 714 714 706 700 29 Middle East oil-exporting countries3 27 23 19 19 30 Africa ............................................................. 5 5 6 5 31 Oil-exporting countries4 ..................... 2 1 2 1 32 All other5 ...................................................... Commercial liabilities 33 Europe .......................................................... 2,972 2,941 3,255 3,343 34 Belgium-Luxembourg ......................... 75 70 81 103 35 France ....................................................... 317 339 339 379 36 Germany ................................................... 536 402 481 553 37 Netherlands ............................................. 208 194 202 178 38 Switzerland .............................................. 302 329 439 348 39 United Kingdom .................................... 798 843 979 992 40 Canada .......................................................... 667 614 651 715 41 Latin America ............................................. 995 1,161 1,319 1,384 42 Bahamas .................................................. 25 16 65 89 43 Bermuda ................................................... 95 40 80 45 44 Brazil ........................................................ 74 61 165 186 45 British West Indies .............................. 53 89 121 21 46 Mexico ..................................................... 106 236 203 256 47 Venezuela ............................................... 303 356 323 359 48 Asia ................................................................ 2,950 2,636 3,021 2,985 49 Japan ........................................................ 438 411 499 516 50 Middle East oil-exporting countries3 1,535 1,113 1,216 1,039 51 Africa ............................................................. 743 779 891 775 52 Oil-exporting countries4 ..................... 312 343 410 385 53 All other5 ..................................................... 246 290 1. For a description of the changes in the International Statistics tables, see July 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 1979 Bulletin, p. 550. United Arab Emirates (Trucial States). 2. Before December 1978, foreign currency data include only liabilities denom- 4. Comprises Algeria, Gabon, Libya, and Nigeria. inated in foreign currencies with an original maturity of less than one year. 5. Includes nonmonetary international and regional organizations. 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 States1 Millions of dollars, end of period Type, and area or country June Sept Sept. Dec. 1 Total ................................................................... 21,298 27,626 23,229 23,260 30,071 29,398 29,808 2 Payable in dollars .......................................... 18,300 19,880 24,604 21,665 21,292 27,241 26,495 27,109 3 Payable in foreign currencies2 .................. 1,050 1,418 3,022 1,564 1,968 2,829 2,904 2,699 By type 4 Financial claims .............................................. 16,276 19,328 18,382 18,034 5 Deposits ........................................................ 10,815 13,895 12,807 12,661 6 Payable in dollars ................................. 9,753 12,975 11,871 11,759 7 Payable in foreign currencies .......... 1,062 920 936 901 8 Other financial claims .............................. 5,461 5,433 5,575 5,373 9 Payable in dollars ................................. 3,872 3,893 4,012 3,984 10 Payable in foreign currencies .......... 1,589 1,540 1,563 1,389 11 Commercial claims ........................................ 11,351 10,743 11,016 11,774 12 Trade receivables ....................................... 10,712 9,996 10,311 10,965 13 Advance payments and other claims .. 639 747 705 14 Payable in dollars ..................................... 10,979 10,373 10,612 11,366 15 Payable in foreign currencies ............... 371 370 404 408 By area or country Financial claims 16 Europe .......................................................... 5,035 5,164 5,458 6,387 17 Belgium-Luxembourg ......................... 48 63 54 33 18 France ....................................................... 178 171 183 191 19 Germany ................................................... 510 266 361 391 20 Netherlands ............................................ 103 85 62 51 21 Switzerland .............................................. 98 96 81 85 22 United Kingdom .................................... 3,848 4,253 4,478 5,357 23 Canada .......................................................... 4,521 5,196 5,066 4,538 24 Latin America and Carribbean ............ 5,563 7,883 6,772 5,943 25 Bahamas .................................................. 2,871 4,111 3,173 2,773 26 Bermuda .................................................. 80 63 57 61 27 Brazil ........................................................ 151 137 122 114 28 British West Indies .............................. 1,280 2,443 2,278 1,711 29 Mexico ..................................................... 162 160 158 155 30 Venezuela ............................................... 150 142 148 137 31 Asia ............................................................... 922 829 800 818 32 Japan ........................................................ 307 207 216 222 33 Middle East oil-exporting countries3 18 16 17 21 34 Africa ............................................................. 181 204 227 278 35 Oil-exporting countries4 ..................... 10 26 23 41 36 All other5 ..................................................... 69 Commercial claims 37 Europe .......................................................... 3,990 3,837 3,842 4,170 38 Belgium-Luxembourg ......................... 148 177 174 184 39 France ....................................................... 613 494 473 549 40 Germany .................................................. 416 514 435 467 41 Netherlands ............................................. 262 274 306 262 42 Switzerland .............................................. 198 230 232 224 43 United Kingdom .................................... 817 691 724 815 44 Canada .......................................................... 1,110 1,121 1,127 1,174 45 Latin America and Caribbean ............. 2,544 2,391 2,403 2,562 46 Bahamas .................................................. 109 117 98 16 47 Bermuda .................................................. 215 241 118 152 48 Brazil ........................................................ 626 491 499 565 49 British West Indies .............................. 9 10 25 13 50 Mexico ..................................................... 506 489 584 647 51 Venezuela ............................................... 292 274 296 345 52 Asia ................................................................ 3,081 2,756 2,969 3,106 53 Japan ........................................................ 979 896 1,003 1,129 54 Middle East oil-exporting countries3 712 672 685 661 55 Africa ............................................................. 447 443 487 548 56 Oil-exporting countries4 ..................... 136 131 139 139 57 All other5 ..................................................... 179 195 189 213 1.For a description of the changes in the International Statistics tables, see July 3.Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 1979, Bulletin, p. 550. United Arab Emirates (Trucial States). 2.Prior to December 1978, foreign currency data include only liabilities denom­ 4.Comprises Algeria, Gabon, Libya, and Nigeria. inated in foreign currencies with an original maturity of less than one year. 5.Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics □ April 1980 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Mar. 31, 1980 Rate on ]Mar. 31, 1980 Rate on Mar. 31, 1980 Country Country Country Per­ Month Per­ Month Per­ Month cent effective cent effective cent effective Argentina ............................. 18.0 Feb. 1972 France ................................... 9.5 Aug. 1977 Norway .................................. 9.0 Nov. 1979 Austria .................................. 6.75 Mar. 1980 Germany, Fed. Rep. of .. 7.0 Feb. 1980 Sweden .................................. 10.0 Jan. 1980 Belgium 14.0 Mar. 1980 Italy ........................................ 15.0 Dec. 1979 Switzerland ........................... 3.0 Feb. 1980 Brazil ..................................... 33.0 Nov. 1978 Japan ..................................... 9.0 Mar. 1980 United Kingdom ................ 17.0 Nov. 1979 Canada .................................. 15.49 Mar. 1980 Mexico .................................. 4.5 June 1942 Venezuela ............................ 8.5 May 1979 Denmark ............................... 13.0 Feb. 1980 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 1980 Country, or type 1977 1978 1979 Oct. Nov. Dec. Jan. Feb. Mar. 1 Eurodollars ............................................................................. 6.03 8.74 11.96 14.59 15.00 14.51 14.33 15.33 18.72 2 United Kingdom ................................................................... 8.07 9.18 13.60 14.12 16.09 16.71 17.30 17.72 18.07 3 Canada ...................................................................................... 7.47 8.52 11.91 13.34 14.19 14.02 13.93 13.96 14.72 4 Germany ................................................................................. 4.30 3.67 6.64 8.84 9.57 9.54 8.79 8.94 9.51 5 Switzerland ............................................................................. 2.56 0.74 2.04 2.57 3.97 5.67 5.45 5.19 6.57 6 Netherlands ........................................................................... 4.73 6.53 9.33 10.09 11.86 14.56 11.85 11.99 11.48 7 France ....................................................................................... 9.20 8.10 9.44 12.14 12.72 12.55 12.31 12.63 13.94 8 Italy ............................................................................................ 14.26 11.40 11.85 12.71 13.12 16.01 17.00 17.88 18.12 9 Belgium ................................................................................... 6.95 7.14 10.48 12.99 14.17 14.49 14.38 14.45 16.23 10 Japan ......................................................................................... 6.22 4.75 6.10 7.01 8.13 8.42 8.44 9.10 12.37 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 1980 Country/currency 1977 1978 1979 Oct. Nov. Dec. Jan. Feb. Mar. 1 Australia/dollar .............................. 110.82 114.41 111.77 111.31 109.34 110.30 110.97 110.41 109.03 2 Austria/schilling ............................ 6.0494 6.8958 7.4799 7.7570 7.8345 8.0039 8.0689 7.9815 7.5539 3 Belgium/franc ................................. 2.7911 3.1809 3.4098 3.4656 3.4822 3.5423 3.5688 3.5221 3.3395 4 Canada/dollar ................................. 94.112 87.729 85.386 85.084 84.771 85.471 85.912 86.546 85.255 5 Denmark/krone .............................. 16.658 18.156 19.010 19.110 19.034 18.618 18.568 18.326 17.325 6 Finland/markka .............................. 24.913 24.337 27.732 26.483 26.428 26.830 27.082 26.912 25.998 7 France/franc .................................... 20.344 22.218 23.504 23.809 24.065 24.614 24.750 24.413 23.188 8 Germany/deutsche mark ............ 43.079 49.867 54.561 55.884 56.470 57.671 57.986 57.203 54.039 9 India/rupee ...................................... 11.406 12.207 12.265 12.159 12.209 12.350 12.519 12.529 12.270 10 Ireland/pound ................................ 174.49 191.84 204.65 208.28 208.70 212.76 214.31 211.59 202.25 11 Italy/lira ............................................ .11328 .11782 .12035 .12112 .12112 .12329 .12427 .12346 .11635 12 Japan/yen ......................................... .37342 .47981 .45834 .43405 .40834 .41613 .42041 .40934 .40246 13 Malaysia/ringgit ............................. 40.620 43.210 45.720 46.074 45.661 45.931 45.868 45.896 44.956 14 Mexico/peso .................................... 4.4239 4.3896 4.3826 4.3825 4.3726 4.3768 4.3780 4.3789 4.3739 15 Netherlands/guilder ...................... 40.752 46.284 49.843 50.379 50.686 52.092 52.527 51.886 49.270 16 New Zealand/dollar ..................... 96.893 103.64 102.23 98.564 96.813 98.100 98.690 97.960 95.451 17 Norway/krone ................................ 18.789 19.079 19.747 20.143 19.928 20.092 20.373 20.483 19.815 18 Portugal/escudo ............................. 2.6234 2.2782 2.0437 1.9992 1.9852 2.0036 2.0051 2.0634 2.0116 19 South Africa/rand ......................... 114.99 115.01 118.72 120.79 120.32 120.79 121.64 122.90 123.59 20 Spain/peseta ................................... 1.3287 1.3073 1.4896 1.5117 1.5051 1.5039 1.5124 1.5006 1.4446 21 Sri Lanka/rupee ............................ 11.964 6.3834 6.4226 6.4000 6.4053 6.4300 6.4323 6.4350 6.4098 22 Sweden/krona ................................ 22.383 22.139 23.323 23.747 23.677 23.935 24.112 23.974 23.008 23 Switzerland/franc ........................... 41.714 56.283 60.121 61.350 60.870 62.542 62.693 60.966 56.710 24 United Kingdom/pound ............. 174.49 191.84 212.24 214.38 213.52 220.07 226.41 228.91 220.45 Memo: 25 United States/dollar1 ................... 103.31 92.39 88.09 87.67 88.12 86.32 85.52 86.37 90.26 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 page rencies of other G-10 countries plus Switzerland. March 1973 = 100. 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

A69 G u id e t o T a b u la r P r e s e n ta tio n a n d S ta tis tic a l R e le a s e s 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 heading IPCs Individuals, partnerships, and corporations when more than half of figures in that column REITs Real estate investment trusts are changed.) RPs Repurchase agreements Amounts insignificant in terms of the last decimal SMSAs Standard metropolitan statistical areas place shown in the table (for example, less than Cell not applicable 500,000 when the smallest unit given is mil­ lions) General Information Minus signs are used to indicate (1) a decrease, (2) a negative gations of the Treasury. “State and local government” also figure, or (3) an outflow. includes municipalities, special districts, and other political “U.S. government securities” may include guaranteed is­ subdivisions. sues of U.S. government agencies (the flow of funds figures In some of the tables details do not add to totals because of also include not fully guaranteed issues) as well as direct obli­ rounding. Statistical Releases List Published Semiannually, with Latest Bulletm 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

A70 F e d e r a l R e s e r v e B o a r d o f G o v e r n o r s Paul A. V olcker, Chairman H enry C. W allich Frederick: H. Schultz, Vice Chairman J. C harles Partee Office of Board Members Office of Staff Director for M onetary and Financial Policy Joseph R. Coyne, Assistant to the Board Jay Paul Brenneman, Special Assistant to the Board Stephen H. Axilrod, Staff Director Frank O’Brien, Jr., Special Assistant to the Board Edward C. Ettin, Deputy Staff Director Joseph S. Sims, Special Assistant to the Board Murray Altmann, Assistant to the Board Donald J. Winn, Special Assistant to the Board Peter M. Keir, Assistant to the Board Stanley J. Sigel, Assistant to the Board Normand R. V. Bernard, Special Assistant to the Board Legal Division Neal L. Petersen, General Counsel Division of research and Statistics Robert E. Mannion, Deputy General Counsel Charles R. McNeill, Assistant to the General Counsel James L. Kichline, Director J. Virgil Mattingly, Assistant General Counsel Joseph S. Zeisel, Deputy Director Gilbert T. Schwartz, Assistant General Counsel John H. Kalchbrenner, Associate Director Michael J. Prell, Associate Director Robert A. Eisenbeis, Senior Deputy Associate Director Office of the Secretary tJoHN J. Mingo, Senior Deputy Associate Director Eleanor J. Stockwell, Senior Deputy Associate Director Theodore E. Allison, Secretary James M. Brundy, Deputy Associate Director Griffith L. Garwood, Deputy Secretary Jared J. Enzler, Deputy Associate Director Barbara R. Lowrey, Assistant Secretary J. Cortland G. Peret, Deputy Associate Director *Cathy L. Petryshyn, Assistant Secretary Helmut F. Wendel, Deputy Associate Director tRiCHARD H. Puckett, Assistant Secretary Robert M. Fisher, Assistant Director Frederick M. Struble, Assistant Director Stephen P. Taylor, Assistant Director Division of Consumer Levon H. Garabedian, Assistant Director (Administration) and Community Affairs Janet O. Hart, Director Division of International Finance Nathaniel E. Butler, Associate Director Jerauld C. Kluckman, Associate Director Edwin M. Truman, Director Robert F. Gemmill, Associate Director George B. Henry, Associate Director Division of Banking Charles J. Siegman, Associate Director Supervision and Regulation Samuel Pizer, Staff Adviser Jeffrey R. Shafer, Deputy Associate Director John E. Ryan, Director Dale W. Henderson, Assistant Director Frederick R. Dahl, Associate Director Larry J. Promisel, Assistant Director William Taylor, Associate Director Ralph W. Smith, Jr., Assistant 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

A71 a n d O ffic ia l S t a f f Nancy H. Teeters Emmett J. Rice Office of Office of Staff Director for Staff Director for Management Federal Reserve Bank Activities John M. Denkler, Staff Director William H. Wallace, Staff Director Edward T. Mulrenin, Assistant Staff Director Harry A. Guinter, Assistant Director for Contingency Joseph W. Daniels, Sr. , Director of Equal Employment Op­ Planning portunity 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 Alt^ausen, Assistant Director Glenn L. Cummins, Assistant Director Charles W. Bennett, Assistant Director Robert J. Zemel, Assistant Director Lorin S. Meeder, Assistant Director P. D. Ring, Assistant Director Raymond L. Teed, Assistant Director Division of Personnel 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 Walter W. Kreimann, Associate Director *On loan from the Federal Reserve Bank of Cleveland. +On leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

All Federal Reserve Bulletin □ April 1980 F O M C a n d A d v is o r y C o u n c ils Federal Open Market Committee Paul A. Volckfr, Chairman Roger Guffey Emmett J. Rice Nancy H. Teeters Frank E. Morris Lawrence K. Roos Henry C. Wallich J. Charles Partee Frederick H. Schultz Willis J. Winn Murray Altmann, Secretary Richard G. Davis, Associate Economist Normand R. V. Bernard, Assistant Secretary Thomas Davis, Associate Economist Neal L. Petersen, General Counsel Robert Eisenmenger, Associate Economist James H. Oltman, Deputy General Counsel Edward C. Ettin, Associate Economist Robert E. Mannion, Assistant General Counsel George B. Henry, Associate Economist Stephen H. Axilrod, Economist Peter M. Keir, Associate Economist Alan R. Holmes, Adviser for Market Operations James L. Kichline, Associate Economist Anatol Balbach, Associate Economist Edwin M. Truman, Associate Economist John 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 Clarence C. Barksdale, Eighth District, President James D. Berry, Eleventh District, Vice President Henry S. Woodbridge, Jr., First District Robert Strickland, Sixth District Donald C. Platten, Second District Roger E. Anderson, Seventh District William B. Eagleson, Jr., Third District Clarence G. Frame, Ninth District Merle E. Gilliand, Fourth District Gordon E. Wells, Tenth District J. Owen Cole, Fifth District Chauncey E. Schmidt, Twelfth District Herbert V. Prochnow, Secretary William J. Korsvik, Associate Secretary Consumer Advisory Council William D. Warren, Los Angeles, California, Chairman Marcia A. Hakala, Omaha, Nebraska, Vice Chairman Julia H. Boyd, Washington, D.C. Harvey M. Kuhnley, Minneapolis, Minnesota Roland E. Brandel, San Francisco, California The Rev. Robert J. McEwen, S.J., Boston, Massachusetts Ellen Broadman, Washington, D.C. R. C. Morgan, El Paso, Texas James L. Brown, Milwaukee, Wisconsin Margaret Reilly-Petrone, Upper Montclair, New Jersey Mark E. Budnitz, Atlanta, Georgia Rene Reixach, Rochester, New York Robert V. Bullock, Frankfort, Kentucky Florence M. Rice, New York, New York Richard S. D’Agostino, Philadelphia, Pennsylvania Ralph J. Rohner, Washington D.C. Joanne Faulkner, New Haven, Connecticut Henry B. Schechter, Washington, D.C. Vernard W. Henley, Richmond, Virginia Peter D. Schellie, Washington, D.C. Juan Jesus Hinojosa, McAllen, Texas E. G. Schuhart, II, Amarillo, Texas Shirley T. Hosoi, Los Angeles, California Charlotte H. Scott, Charlottesville, Virginia F. Thomas Juster, Ann Arbor, Michigan Richard A. Van Winkle, Salt Lake City, Utah Richard F. Kerr, Cincinnati, Ohio Richard D. Wagner, Simsbury, Connecticut Robert J. Klein, New York, New York Mary W. Walker, Monroe, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 F e d e r a l R e s e r v e B a n k s , B r a n c h e s , a n d O ffic e s FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* .................... .02016 Robert M. Solow Frank E. Morris Robert P. Henderson James A. McIntosh NEW YORK* ............... 10045 Robert H. Knight Anthony M. Solomon Boris Yavitz Thomas M. Timlen Buffalo.......................... 14240 Frederick D. Berkeley, III John T. Keane PHILADELPHIA....... 19105 John W. Eckman David P. Eastbum Werner C. Brown Richard L. Smoot CLEVELAND* ............ 44101 Robert E. Kirby Willis J. Winn J. L. Jackson Walter H. MacDonald Cincinnati.................... 45201 Lawrence H. Rogers, II Robert E. Showalter Pittsburgh.................... .15230 William H. Knoell Robert D. Duggan RICHMOND* ................23261 Maceo A. Sloan Robert P. Black Steven Muller George C. Rankin Baltimore......................21203 Catherine Byrne Doehler Jimmie R. Monhollon Charlotte ......................28230 Robert E. Elberson Stuart P. Fishburne Culpeper Communications and Records Center 22701 Albert D. Tinkelenberg ATLANTA .................... ,30303 William A. Fickling, Jr. Monroe Kimbrel John H. Weitnauer, Jr. Robert P. Forrestal Birmingham ............... 35202 Harold B. Blach, Jr. Hiram J. Honea Jacksonville ............... 32203 Joan W. Stein Charles D. East Miami .......................... 33152 David G. Robinson F. J. Craven, Jr. Nashville .................... 37203 Robert C. H. Mathews, Jr. Jeffrey J. Wells New Orleans............... 70161 George C. Cortright, Jr. Pierre M.Viguerie CHICAGO*.................... 60690 John Sagan Robert P. Mayo Stanton R. Cook Daniel M. Doyle Detroit.......................... 48231 Howard F. Sims William C. Conrad ST. LOUIS .................... 63166 Armand C. Stalnaker Lawrence K. Roos William B. Walton Donald W. Moriarty, Jr. Little Rock................. 72203 E. Ray Kemp, Jr. John F. Breen Louisville.................... 40232 Richard O. Donegan Donald L. Henry Memphis .................... ,38101 Frank A. Jones, Jr. Robert E. Matthews 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 Joseph H. Williams Roger Guffey Paul H. Henson Henry R. Czerwinski Denver.......................... 80217 Caleb B. Hurtt Wayne W. Martin Oklahoma City............ 73125 Christine H. Anthony William G. Evans Omaha.......................... 68102 Robert G. Lueder Robert D. Hamilton DALLAS ....................... 75222 Irving A. Mathews Ernest T. Baughman Gerald D. Hines Robert H. Boykin El Paso.......................... 79999 Chester J. Kesey Joel L. Koonce, Jr. Houston....................... 77001 Gene M. Woodfin J. Z. Rowe San Antonio ............... 78295 Carlos A. Zuniga Carl H. Moore SAN FRANCISCO ...... 94120 Cornell C. Maier John J. Balles Caroline Ahmanson John B. Williams Los Angeles ............... 90051 Harvey A. Proctor 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

A74 F e d e r a l R e s e r v e B o a r d P u b lic a t io n s Copies are available from PUBLICATIONS SERVICES. request and be made payable to the order of the Board of ROOM MP-510, BOARD OF GOVERNORS OF THE FED­ Governors of the Federal Reserve System. Remittance from ERAL RESERVE SYSTEM, WASHINGTON, D.C. 20551. foreign residents should be drawn on a U.S. bank. Stamps When a charge is indicated, remittance should accompany and coupons are not accepted. The Federal Reserve System—Purposes and Func­ Bank Credit-Card and Check-Credit Plans. 1968. 102 tions. 1974. 125 pp. pp. $1.00 each; 10 or more to one address, $.85 each. Annual Report. Survey of Changes in Family Finances. 1968. 321 pp. Federal Reserve Bulletin. Monthly. $20.00 per year or $1.00 each; 10 or more to one address, $.85 each. $2.00 each in the United States, its possessions, Canada, Report of the Joint Treasury-Federal Reserve Study and Mexico; 10 or more of same issue to one address, of the U.S. Government Securities Market. 1%9. $18.00 per year or $1.75 each. Elsewhere, $24.00 per 48 pp. $.25 each; 10 or more to one address, $.20 each. year or $2.50 each. Joint Treasury-Federal Reserve Study of the Gov­ Banking and Monetary Statistics, 1914-1941. (Reprint ernment Securities Market: Staff Studies—Part of Part I only) 1976. 682 pp. $5.00. 1. 1970. 86 pp. $.50 each; 10 or more to one address, $.40 Banking and Monetary Statistics, 1941-1970. 1976. each. Part 2, 1971. 153 pp. and Part 3. 1973. 131 pp. Each 1,168 pp. $15.00. volume $1.00; 10 or more to one address, $.85 each. Annual Statistical Digest Open Market Policies and Operating Procedures— 1971-75. 1976. 339 pp. $4.00 per copy for each paid sub­ Staff Studies. 1971. 218 pp. $2.00 each; 10 or more to scription to Federal Reserve Bulletin; all others $5.00 one address, $1.75 each. each. Reappraisal of the Federal Reserve Discount Mecha­ 1972-76. 1977. 377 pp. $10.00 per copy. nism. Vol. I. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. 1973-77. 1978. 361 pp. $12.00 per copy. 1972. 220 pp. Each volume $3.00; 10 or more to one ad­ 1974-78. 1980. 305 pp. $10.00 per copy. dress, $2.50 each. Federal Reserve Chart Book. Issued four times a year in The Econometrics of Price Determination Confer­ February, May, August, and November. Subscription ence, October 30-31, 1970, Washington, D.C. 1972. 397 includes one issue of Historical Chart Book. $7.00 per pp. Cloth ed. $5.00 each; 10 or more to one address, year or $2.00 each in the United States, its possessions, $4.50 each. Paper ed. $4.00 each; 10 or more to one ad­ Canada, and Mexico. Elsewhere, $10.00 per year or dress, $3.60 each. $3.00 each. Federal Reserve Staff Study: Ways to Moderate Historical Chart Book. Issued annually in Sept. Subscrip­ Fluctuations in Housing Construction. 1972. 487 tion to Federal Reserve Chart Book includes one issue. pp. $4.00 each; 10 or more to one address, $3.60 each. $1.25 each in the United States, its possessions, Canada, Lending Functions of the Federal Reserve Banks. and Mexico; 10 or more to one address, $1.00 each. Else­ 1973. 271 pp. $3.50 each; 10 or more to one address, $3.00 each. where, $1.50 each. Capital Market Developments. Weekly. $15.00 per year Improving the Monetary Aggregates: Report of the or $.40 each in the United States, its possessions, Cana­ Advisory Committee on Monetary Statistics. da, and Mexico; 10 or more of same issue to one address, 1976. 43 pp. $1.00 each; 10 or more to one address, $.85 $13.50 per year or $.35 each. Elsewhere, $20.00 per year each. or $.50 each. Annual Percentage Rate Tables (Truth in Lending— Regulation Z) Vol. I (Regular Transactions). 1969. 100 Selected Interest and Exchange Rates—Weekly Se­ pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each ries of Charts. Weekly. $15.00 per year or $.40 each in volume $1.00; 10 or more of same volume to one ad­ the United States, its possessions, Canada, and Mexico; dress, $.85 each. 10 or more of same issue to one address, $13.50 per year or $.35 each. Elsewhere, $20.00 per year or $.50 each. Federal Reserve Measures of Capacity and Capacity Utilization. 1978. 40 pp. $1.75 each; 10 or more to one The Federal Reserve Act, as amended through December address, $1.50. each. 1976, with an appendix containing provisions of certain other statutes affecting the Federal Reserve System. 307 The Bank Holding Company Movement to 1978: A pp. $2.50. Compendium. 1978. 289 pp. $2.50 each; 10 or more to one address, $2.25 each. Regulations of the Board of Governors of the Fed­ Improving the Monetary Aggregates: Staff Papers. eral Reserve System 1978. 170 pp. $4.00 each; 10 or more to one address, Published Interpretations of the Board of Gover­ $3.75 each. nors, as of Dec. 31, 1979. $7.50. 1977 Consumer Credit Survey. 1978. 119 pp. $2.00 each. Industrial Production: 1976 Edition. 1977. 304 pp. $4.50 Flow of Funds Accounts. 1949-1978. 1979. 171 pp. each; 10 or more to one address, $4.00 each. $1.75 each; 10 or more to one address, $1.50 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 Consumer Education Pamphlets Short pamphlets suitable for classroom use. Multiple Innovations in Bank Loan Contracting: Recent Evi­ copies available without charge. dence by Paul W. Boltz and Tim S. Campbell. May 1979. 40 pp. The Board of Governors of the Federal Reserve System Measurement of Capacity Utilization: Problems and Consumer Handbook To Credit Protection Laws Tasks, by Frank de Leeuw, Lawrence R. Forest, Jr., The Equal Credit Opportunity Act and . . . Age Richard D. Raddock, and Zoltan E. Kenessey. July 1979. The Equal Credit Opportunity Act and . . . Credit Rights in 264 pp. Housing The Market for Federal Funds and Repurchase The Equal Credit Opportunity Act and . . . Doctors, Agreements, by Thomas D. Simpson. July 1979. 106 pp. Lawyers, Small Retailers, and Others Who May Provide Impact of Bank Holding Companies on Competition Incidental Credit and Performance in Banking Markets, by Stephen The Equal Credit Opportunity Act and . . . Women A. Rhoades and Roger D. Rutz. Aug. 1979. 30 pp. Fair Credit Billing The GNMA-Guaranteed Passthrough Security: Mar­ The Federal Open Market Committee ket Development and Implications for the Growth Federal Reserve Bank Board of Directors and Stability of Home Mortgage Lending, by Federal Reserve Banks David F. Seiders. Dec. 1979. 65 pp. Federal Reserve Glossary How to File A Consumer Credit Complaint Printed in Full in the Bulletin If You Borrow To Buy Stock An Assessment of Bank Holding Companies, by If You Use A Credit Card Robert J. Lawrence and Samuel H. Talley. January 1976. Truth in Leasing U.S. Currency What Truth in Lending Means to You Reprints Except for Staff Studies, and some leading articles, most of the articles reprinted do not exceed 12 pages. Staff Studies Measures of Security Credit. 12/70. Studies and papers on economic and financial subjects that Revision of Bank Credit Series. 12/71. are of general interest. Assets and Liabilities of Foreign Branches of U.S. Banks. 2/72. Summaries Only Printed in the Bulletin Bank Debits, Deposits, and Deposit Turnover—Revised Requests to obtain single copies of the full text or to be Series. 7/72. added to the mailing list for the series may be sent to Pub­ Yields on Newly Issued Corporate Bonds. 9/72. lications Services. Yields on Recently Offered Corporate Bonds. 5/73. Rates on Consumer Instalment Loans. 9/73. Interest Rate Ceilings and Disintermediation, by Ed­ New Series for Large Manufacturing Corporations. 10/73. ward F. McKelvey. Sept. 1978. 105 pp. The Structure of Margin Credit. 4/75. The Relationship Between Reserve Ratios and the Industrial Electric Power Use. 1/76. Monetary Aggregates Under Reserves and Fed­ Revision of Money Stock Measures. 2/76. eral Funds Rate Operating Targets, by Kenneth J. Revised Series for Member Bank Deposits and Aggregate Re­ Kopecky. Dec. 1978. 58 pp. serves. 4/76. Tie-ins Between the Granting of Credit and Sales of Industrial Production— 1976 Revision. 6/76. Insurance by Bank Holding Companies and Other Federal Reserve Operations in Payment Mechanisms: A Lenders, by Robert A. Eisenbeis and Paul R. Schweitzer. Summary. 6/76. Feb. 1979. 75 pp. New Estimates of Capacity Utilization: Manufacturing and Geographic Expansion of Banks and Changes in Bank­ Materials. 11/76. ing Structure, by Stephen A. Rhoades. Mar. 1979. 40 The Commercial Paper Market. 6/77. pp. The Federal Budget in the 1970’s. 9/78. Impact of the Dollar Depreciation on the U.S. Price Redefining the Monetary Aggregates. 1/79. Level: An Analytical Survey of Empirical Esti­ U.S. International Transactions in 1978. 4/79. mates, by Peter Hooper and Barbara R. Lowrey. Apr. Implementation of the International Banking Act. 10/79. 1979. 53 pp. Changes in Bank Lending Practices, 1977-79. 10/79. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 I n d e x to S ta tis tic a l T a b le s References are to pages A-3 through A-68 although the prefix “A” is omitted in this index ACCEPTANCES, bankers, 10, 25, 27 Deposits (See also specific types) Agricultural loans, commercial banks, 18, 20-22, 26 Banks, by classes, 3, 16, 17, 19, 20-23, 29 Assets and liabilities (See also Foreigners) Federal Reserve Banks, 4,11 Banks, by classes, 16, 17, 18, 20-23, 29 Subject to reserve requirements, 14 Domestic finance companies, 39 Turnover, 12 Federal Reserve Banks, 11 Discount rates at Reserve Banks (See Interest rates) Nonfinancial corporations, current, 38 Discounts and advances by Reserve Banks (See Loans) Automobiles Dividends, corporate, 37 Consumer installment credit, 42,43 Production, 48, 49 EMPLOYMENT, 46, 47 Eurodollars, 27 BANKERS balances, 16, 18, 20, 21, 22 (See also Foreigners) Banks for Cooperatives, 35 FARM mortgage loans, 41 Bonds (See also U.S. government securities) Farmers Home Administration, 41 New issues, 36 Federal agency obligations, 4, 10, 11, 12, 34 Yields, 3 Federal and federally sponsored credit agencies, 35 Branch banks Federal finance Assets and liabilities of foreign branches of U.S. banks, 56 Debt subject to statutory limitation and types and Liabilities of U.S. banks to their foreign branches, 23 ownership of gross debt, 32 Business activity, 46 Receipts and outlays, 30, 31 Business expenditures on new plant and equipment, 38 Treasury operating balance, 30 Business loans (See Commercial and industrial loans) 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, 11 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, 11 Weekly reporting banks, 20, 21, 22, 23, 24 Discount rates (See Interest rates) Commercial banks U.S. government securities held, 4, 11, 12, 32, 33 Assets and liabilities, 3, 15-19, 20-23 Federal Reserve credit, 4, 5, 11, 12 Business loans, 26 Federal Reserve notes, 11 Commercial and industrial loans, 24, 26 Federally sponsored credit agencies, 35 Consumer loans held, by type, 42,43 Finance companies Loans sold outright, 23 Assets and liabilities, 39 Number, by classes, 16, 17, 19 Business credit, 39 Real estate mortgages held, by type of holder and Loans, 20, 21, 22, 42, 43 property, 41 Paper, 25, 27 Commercial paper, 3, 25, 27, 39 Financial institutions, loans to, 18, 20-22 Condition statements (See Assets and liabilities) Float, 4 Construction, 46, 50 Flow of funds, 44, 45 Consumer installment credit, 42,43 Foreign Consumer prices, 46, 51 Currency operations, 11 Consumption expenditures, 52, 53 Deposits in U.S. banks, 4, 11, 19, 20, 21, 22 Corporations Exchange rates,^8 Profits, taxes, and dividends, 37 Trade, 55 Security issues, 36, 65 Foreigners Cost of living (See Consumer prices) Claims on, 56, 58, 61, 62, 63,67 Credit uniqns, 29,42,43 Liabilities to, 23, 56-60, 64-66 Currency and coin, 5, 16, 18 Currency in circulation, 4, 13 GOLD Customer credit, stock market, 28 Certificates, 11 Stock, 4, 55 DEBITS to deposit accounts, 12 Government National Mortgage Association, 35,40,41 Debt (See specific types of debt or securities) Gross national product, 52, 53 Demand deposits Adjusted, commercial banks, 12, 15, 19 HOUSING, new and existing units, 50 Banks, by classes, 16, 17, 19, 20—23 Ownership by individuals, partnerships, and INCOME, personal and national, 46, 52, 53 corporations, 25 Industrial production, 46,48 Subject to reserve requirements, 14 Installment loans, 42,43 Turnover, 12 Insurance companies, 29, 32, 33,41 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A77 Insured commercial banks, 17, 18, 19 Real estate loans—Continued Interbank loans and deposits, 16, 17 Life insurance companies, 29 Interest rates Mortgage terms, yields, and activity, 3, 40 Bonds, 3 Type of holder and property mortgaged, 41 Business loans of banks, 26 Repurchase agreements and federal funds, 6 Federal Reserve Banks, 3, 7 Reserve requirements, member banks, 8 Foreign countries, 68 Reserves Money and capital markets, 3, 27 Commercial banks, 16, 18, 20, 21,22 Mortgages, 3, 40 Federal Reserve Banks, 11 Prime rate, commercial banks, 26 Member banks, 3, 4, 5, 14, 16, 18 Time and savings deposits, 9 U.S. reserve assets, 55 International capital transactions of the United States, 56-67 Residential mortgage loans, 40 International organizations, 56-61,64-67 Retail credit and retail sales, 42, 43,46 Inventories, 52 Investment companies, issues and assets, 37 SAVING Investments (See also specific types) Flow of funds, 44, 45 Banks, by classes, 16, 17, 18,20,21,22,29 National income accounts, 53 Commercial banks, 3, 15, 16, 17, 18 Savings and loan assns., 3, 9, 29, 33, 41, 44 Federal Reserve Banks, 11, 12 Savings deposits (See Time deposits) Life insurance companies, 29 Savings institutions, selected assets, 29 Savings and loan associations, 29 Securities (See also U.S. government securities) Federal and federally sponsored agencies, 35 LABOR force, 47 Foreign transactions, 65 Life insurance companies (See Insurance companies) New issues, 36 Loans (See also specific types) Prices, 28 Banks, by classes, lb, 17, 18, 20-23, 29 Special drawing rights, 4, 11, 54, 55 Commercial banks, 3, 15-18, 20-23, 24, 26 State and local governments Federal Reserve Banks, 3, 4, 5, 7, 11, 12 Deposits, 19, 20, 21, 22 Insurance companies, 29,41 Holdings of U.S. government securities, 32, 33 Insured or guaranteed by United States, 40, 41 New security issues, 36 Savings and loan associations, 29 Ownership of securities of, 18, 20, 21,22, 29 Yields of securities, 3 MANUFACTURING State member banks, 17 Capacity utilization, 46 Stock market, 28 Production, 46,49 Stocks (See also Securities) Margin requirements, 28 New issues, 36 Member banks Prices, 28 Assets and liabilities, by classes, 16, 17, 18 Borrowings at Federal Reserve Banks, 5, 11 TAX receipts, federal, 31 Federal funds and repurchase agreements, 6 Time deposits, 3, 9, 12, 14, 16, 17, 19, 20, 21, 22, 23 Number, by classes, 16, 17, 19 Trade, foreign, 55 Reserve requirements, 8 Treasury currency, Treasury cash, 4 Reserves and related items, 3, 4, 5, 14 Treasury deposits, 4, 11, 30 Mining production, 49 Treasury operating balance, 30 Mobile home shipments, 50 Monetary aggregates, 3, 14 UNEMPLOYMENT, 47 Money and capital market rates (See Interest rates) U.S. balance of payments, 54 Money stock measures and components, 3, 13 U.S. government balances Mortgages (See Real estate loans) Commercial bank holdings, 19, 20, 21, 22 Mutual funds (See Investment companies) Member bank holdings, 14 Mutual savings banks, 3, 9, 20-22, 29, 32, 33, 41 Treasury deposits at Reserve Banks, 4, 11, 30 U.S. government securities NATIONAL banks, 17 Bank holdings, 16, 17, 18,20,21,22,29,32,33 National defense outlays, 31 Dealer transactions, positions, and financing, 34 National income, 52 Federal Reserve Bank holdings, 4, 11, 12, 32, 33 Nonmember banks, 17, 18, 19 Foreign and international holdings and transactions, 11, 32, 64 OPEN market transactions, 10 Open market transactions, 10 Outstanding, by type and ownership, 32, 33 PERSONAL income, 53 Rates, 3,27 Prices Utilities, production, 49 Consumer and producer, 46, 51 Stock market, 28 VETERANS Administration, 40,41 Prime rate, commercial banks, 26 Production, 46,48 WEEKLY reporting banks, 20-24 Profits, corporate, 37 Wholesale prices, 46, 51 REAL estate loans YIELDS (See Interest rates) Banks, by classes, 18, 20-22, 29,41 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 T h e F e d e r a l R e s e r v e S y s t e m B o u n d aries o f F ed eral R eserv e D istricts and T h eir B ran ch T errito ries Helena Minneapolis "l © P } DetroiU/iii aSS**' j Soft Lake City Omaha* tv. i ?P°isco Denver Louisvilpi Kansas City t. Louis \ NashviU^^-C IOklahoma City* lnge/es \ ® > aittle Rock BirminghaiAtlanta Houston \San Antonio January 1978 ALASKA HAWAII Legend Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories * Federal Reserve Bank Facility © Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis