Federal Reserve Bulletin, 1980-12

VOLUME 66 • NUMBER 12 • DECEMBER 1980 FEDERAL RESERVE BULLETIN Board of Governors of the Federal Reserve System Washington, D.C. PUBLICATIONS COMMITTEE Joseph R. Coyne, Chairman • Stephen H. Axilrod • John M. Denkler Janet O. Hart • James L. Kichline • Neal L. Petersen • Edwin M. Truman Naomi P. Salus, Coordinator 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. The artwork is provided by the Graphic Communications Section under the direction of Peter G. Thomas. 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 943 RECENT DEVELOPMENTS IN MONETARY General Oversight and Renegotiation of the POLICY House Committee on Banking, Finance and Urban Affairs, December 3, 1980. Review of monetary policy over the past year and outline of the Board's basic intentions and some future problems. 962 ANNOUNCEMENTS Changes in the discount rate. 953 TREASUR Y AND FEDERAL RESER VE Proposed simplification of Truth in Lending OPERATIONS: INTERIM REPORT regulation. From August through October interest rate Adoption of policy statement for the handifferentials swung increasingly in favor of dling of protested applications under the the dollar against most major currencies, Bank Holding Company and Bank Merger prompting flows of funds into dollar-de- Acts, for membership in the Federal Renominated assets. serve System, and for new branches of state member banks. 956 INDUSTRIAL PRODUCTION Addition of the performance of real estate Output rose about 1.4 percent in Novem- appraisals to the list of activities perber. missible for bank holding companies. (See Legal Developments.) 957 STATEMENTS TO CONGRESS Amendments of Regulation K granting gen- Lyle E. Gramley, Member, Board of Gov- eral consent for member banks, Edge and ernors, presents the views of the Board on Agreement corporations, and bank holding an amendment that would modify the Bank companies to make certain additional in- Holding Company Act to prohibit banking vestments in organizations in which they alorganizations from acquiring thrift institu- ready have an interest and dealing with the tions except when necessary to prevent an nonbanking activities of foreign bank holdinsolvency or to restore solvency; he states ing companies and foreign banks with bankthat the Congress should consider whether, ing offices in the United States. (See Legal when, and under what circumstances thrift Developments.) institutions and commercial banks should Increase in international claims of U.S. be allowed to affiliate under a holding banks with sizable foreign banking operacompany structure, before the Senate Comtions. mittee on Banking, Housing, and Urban Affairs, November 21, 1980. Revisions of Regulation D affecting the calculation of Eurocurrency liabilities by do- 959 John E. Ryan, Director, Division of Bankmestic depository institutions and by U.S. ing Supervision and Regulation, responds branches and agencies of foreign banks and to the interim report of the General Acregarding transfers of funds from transaccounting Office concerning the efforts of the tion accounts. (See Legal Developments.) federal bank regulatory agencies to monitor compliance with the provisions of the Bank Amendment of Regulation C to require in- Secrecy Act, before the Subcommittee on stitutions to change from a fiscal- to a calen- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

dar-year basis for reporting of 1980 data un- 974 LEGAL DEVELOPMENTS der the Home Mortgage Disclosure Act. Amendments to Regulations D, K, and Y; Availability of agency enforcement docu- various bank holding company and bank ments issued by the Board to enforce vari- merger orders; and pending cases. ous consumer-related acts. Adoption of program to improve the quality AI FINANCIAL AND BUSINESS STATISTICS of the nation's currency through the use of high-speed electronic equipment. A3 Domestic Financial Statistics A44 Domestic Nonfinancial Statistics Changes in Board staff. A53 International Statistics Availability of new Introduction to Flow of A68 Special Tables Funds. A67 GUIDE TO TABULAR PRESENTATION, Admission of four state banks to member- STATISTICAL RELEASES, AND SPECIAL ship in the Federal Reserve System. TABLES A74 BOARD OF GOVERNORS AND STAFF 968 RECORD OF POLIC YACTIONS OF THE FEDERAL OPEN MARKET COMMITTEE A76 FEDERAL OPEN MARKET COMMITTEE At its meeting on October 21, 1980, the AND STAFF; ADVISORY COUNCILS Committee agreed that open market operations in the period until the next meeting Ml FEDERAL RESERVE BANKS, BRANCHES, should be directed toward expansion of re- AND OFFICES serve aggregates consistent with growth of M-1A, M-1B, and M-2 over the September- A78 FEDERAL RESERVE BOARD to-December period at annual rates of PUBLICATIONS about 272 percent, 5 percent, and 1XU percent respectively, or somewhat less, pro- A83 INDEX TO STATISTICAL TABLES vided that in the period before the next regular meeting the weekly average federal A85 INDEX TO VOLUME 66 funds rate remained within a range of 9 to 15 percent. A100 MAP OF FEDERAL RESERVE S YSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Monetary Policy Statement by Paul A. Volcker, Chairman, Board role requires that the Federal Reserve apply the of Governors of the Federal Reserve System, be- measured, persistent restraint on growth in monfore the Subcommittee on Domestic Monetary ey and credit that is necessary to drain the mo- Policy of the Committee on Banking, Finance mentum from inflationary forces in the economy and Urban Affairs, U.S. House of Representa- and to encourage a return to stability in prices tives, November 19, 1980. and unit costs. Misperceptions of the Federal Reserve's intentions in that respect can only detract I welcome the opportunity to review with you from the effectiveness of our actions. At the the events of the past year in the area of mone- same time, fully effective results will require contary policy and to outline our basic intentions certed, complementary efforts from other direcand some of the key problems as we approach tions as well. the future. Our focus on the objective of dealing with in- As you well know, this has been a turbulent flation recognizes that inflation has been the year in the national economy and in financial single most disruptive element on the economic markets. Partly because inflation and inflationary scene. Inflation places tremendous pressures on expectations are profoundly changing behavior the budgets of many households, distorts spendpatterns, economists and forecasters have been ing and saving decisions, inhibits productivityrepeatedly surprised by developments in both expanding business capital formation, erodes the the real and the financial markets. Businessmen, foundations of the domestic and international ficonsumers, and financial intermediaries have nancial systems, and in the process saps conhad to cope with more-than-usual uncertainty fidence at home and abroad in our future. More amid sharp fluctuations in sales, employment, specifically, without a sense that inflation is deand interest rates. Understandably, there has celerating, there can be, in my judgment, little been a sense of frustration and disappointment, hope of bringing about the sustained, balanced combined, I believe, with growing recognition of growth of production and real income that we the fact that deeply seated economic problems seek. That deceleration requires that excessive that have built up over a long period of years will monetary expansion must be avoided. take strong measures to solve. That basic tenet of economic policy, on which Under the circumstances, Federal Reserve economists of almost all schools can agree, is repolicy has understandably been the focus of a flected in the broad concepts of monetary 'targreat deal of scrutiny. Some of this scrutiny has geting" that the Federal Reserve has adopted in concentrated on the techniques of policy imple- recent years, a concept that looks toward a rementation normally of concern only to special- duction in monetary growth over time, and that ists. Most commonly, the public discussion re- the members of this committee and many others flects broad concern about the fluctuations in, or have strongly supported. I recognize that the conlevel of, interest rates and their relationship to cept does not in itself resolve important quesboth inflation and sluggish economic perform- tions about the precise magnitude of the targets ance. Constructive dialogue on these problems is or about the techniques of monetary control, always helpful—and this committee has contrib- matters about which, in fact, there are many difuted to it. ferences of opinion. Nor does it offer exact guid- I hope that a common understanding can ance about how to react to new developments, emerge from this discussion that monetary policy surrounded as they inevitably are by uncertainty indeed has an indispensable role to play in the in interpretation and conflicting considerations. effort to restore a stable, vital economy. That The Federal Reserve's approach to these prob- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

944 Federal Reserve Bulletin • December 1980 lems can, I believe, best be clarified by reviewing sults with you at the time of our regular "Humthe change in operating procedures introduced phrey-Hawkins" testimony. Whatever further about a year ago and developments since that insights we can gain from that systematic study, I time. To that end, I am attaching to this testi- believe certain points are worth emphasizing. mony a statement reviewing our experience with As I have already indicated, 1980 has been an the new operating techniques. unusually turbulent and difficult year. Deeply In reviewing the record, I trust that under- embedded problems of inflation, low productivstandable questions and concerns about particu- ity and investment, weakened competitive posilar actions and techniques will not obscure the tion of some key industries, and dependence on basic order and consistency in our efforts to con- imported energy have made the economy vulnertrol the growth of money and credit. Uncertainty able to nonmonetary "shocks" and extremely on that point would be unfortunate. Let us recog- sensitive to indications of changes in price nize that slowing growth of money and credit in trends, while impairing growth prospects. Exan inflation-prone economy, at best, is not a pectations are highly volatile, and there is a simple, painless job. Let us also recognize that it sense of both impatience and confusion about must be done. setting the economy right. At least as important, we should be aware of All of this puts a special burden on those of us the limitations of purely monetary actions. Act- who develop and implement policy to "get it ing on the basis of those understandings, we right," to communicate our purposes and inshould be able to change expectations, to devel- tentions effectively, and to persevere with op consistent policies to share the burdens, and needed policies. to look forward to the ultimate success of the ef- In that context, I am satisfied that the greater fort. emphasis we have placed on monetary targeting Looking at the most recent situation, I believe in recent years, supplemented by the change in it should be unambiguously clear that the Federal operating techniques, has assisted in both com- Reserve has been leaning hard against excessive municating what we are about and achieving the monetary growth and that we mean to maintain internal discipline necessary to act in a timely firm control as we look ahead. way. One can argue about the precise timing and I believe that our new approach has, over the degree of particular decisions. But the need for year as a whole, helped avoid excessive mone- strong action last winter, prompted in part by tary growth. But I am sure you agree that we growth in the aggregates, to head off an almost should learn all we can from our experience. explosive rise in inflationary sentiment seems to To assist in that process, I initiated in Septem- me incontestable. Contrary to most expectaber, roughly a year after the change in technique, tions, the ominous free-fall in economic activa systematic study of our recent experience, ity during the spring quickly ended, in substandrawing on staff throughout the Federal Reserve, tial part because our operating techniques led so that we do not neglect opportunities to to a rapid opening of credit markets. And while achieve further improvement in operating tech- the episode is clearly not over, we have acted niques and can better address broader policy is- more quickly to rein in recent excessive monesues. We are also acutely conscious of the fact tary growth than would have been at all likely that implementation of the Depository Institu- under the previous operating techniques. tions Deregulation and Monetary Control Act is The record shows, unambiguously, that we do altering the institutional framework of our ac- take the targets seriously. But it also strongly tivities, raising some new questions that must suggests that no single target can reasonably be be carefully considered, particularly in con- interpreted in isolation and that the lower-order nection with the introduction of NOW (nego- aggregates, M-1A and M-1B, can be extremely tiable order of withdrawal) accounts nationwide. volatile. All of them—and the interrelationships We expect to take advantage of these studies in among them—are affected by institutional the review of our 1981 targets required early next change in a way that cannot be quantitatively year and will, of course, share any relevant re- pinned down in advance. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Monetary Policy 945 A clear case this year is the relationship be- importance to statistical precision in hitting the tween M-1A and M-1B. The half-point difference target in any given period. For one thing, a in the ranges for these two aggregates set almost bull's-eye for one aggregate can imply a miss for a year ago reflected an assumption that growth of another as relationships evolve in the course of a automatic transfer service (ATS), NOW, and year. More fundamentally, experience here and similar accounts would be limited; those new abroad strongly points to the fact that relationtypes of account would make up the entire dif- ships of monetary targets to income, inflation, ference between M-1A and M-1B. As the year and interest rates—the variables we really care wore on, NOW and ATS accounts grew more about—are not known with precision. Shifts in rapidly than anticipated, perhaps because pas- technology, regulation (such as deposit ceilings), sage of the Monetary Control Act prompted com- and market incentives are all important at times. mercial banks with the authority to do so to mar- That is why it seems to me the better part of wisket those accounts more aggressively before their dom to think in terms of reasonable ranges. power was extended to potential competitors. As In essence, I believe monetary targeting has a result, we now know the difference between been, and should remain, an invaluable dis- M-1A and M-1B will be more like 2 percent rather cipline, a means for communicating our inthan the V2 percent we had earlier assumed. What tentions, and a benchmark for performance. we cannot know with any accuracy is the extent Whatever the debate about technique and the to which ATS and NOW accounts were fed by significance of possible "misses" over the flows from savings deposits or other funds not course of the year, the broad thrust of our policy counted in M-1B and how much reflected shifts has plainly been one of restraint, working against from demand deposits, depressing M-1A. Put dif- the strong inflationary momentum. I take satisferently, if we arbitrarily assume NOW and ATS faction, limited as that satisfaction must be, that accounts substitute for savings deposits and de- the inflationary process has not gained fresh momand deposits in roughly equal proportions, mentum, despite the strong shocks from energy M-1A has been artificially depressed by 3U per- and (more recently) food prices, the rigidities and cent, and M-1B increased by about the same strong momentum built into wages and prices, amount, relative to the targets set at the start and the trend of government spending and defiof the year. cits. The restraining effort has been accompanied I make the point at some length because these by strains and instability in financial and other shifts are expected to be much larger in the year markets. But I believe we have steered away ahead, when we will have nationwide NOW ac- from more treacherous inflationary storms— counts, and will raise important questions of in- storms that would have brought in their wake terpretation of both M-1A and M-1B. In essence, much more severe financial and economic disit is wrong to view either in isolation. locations. Other examples of institutional change Now we are opening a crucial new chapter— abound; some are of only negligible importance the challenge of restoring growth, productivity, in interpreting the data but others are significant. and employment while visibly reducing inflation. For instance, the explosive growth of money As we look ahead to that challenge, you should market funds earlier this year drew money into be aware that targets and performances for mon- M-2 that otherwise would have been in market etary growth in the general area in which we instruments that are not counted in the Ms. have been operating, or lower, seem bound to be Without allowing for these institutional influ- restrictive so long as the momentum of inflation ences, the various aggregates now are running a remains strong. If we are to deal with inflation, I little below or a little above the upper end of the see no alternative. At the same time I have sporanges set almost a year ago. Obviously, I would ken before about the potential for collision and be delighted to see the data gravitate more to- conflict between restrained monetary growth and ward the midpoints of the established ranges as the financial needs of an expanding and inflating we receive data for the final two months. But I economy. Recent developments provide a taste would warn you against attributing unwarranted of the potential problem. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

946 Federal Reserve Bulletin • December 1980 The point is sometimes made that, in theory, ity cannot support them—will not focus on the monetary restraint, sustained strongly enough technicalities of the various Ms, the precise tarand long enough, can alone do the job of restor- gets, or short-run fluctuations about those taring price stability. Perhaps so—in the long run. gets. What we must do is convey a general But over what period of time and at what unnec- sense—and make good on that message—that essary cost in recurrent pressures on financial excessive creation of money and credit will not markets, in inhibiting investment and dampening underwrite the inflationary process. Taken productivity, in lost output and deferred growth? alone, as I have suggested, that commitment im- The alternative of trying to accommodate real plies an extraordinarily heavy burden on monegrowth while living with inflation by freely creat- tary policy. So equally, we need the perception ing money is ultimately even more threatening. and the reality that essential monetary restraint Expectations of inflation would roar ahead, the will be combined with persistent and effective whole process of inflation would quickly acceler- policies in other directions so that monetary reate, and (I fear sooner rather than later) the straint can be tolerable and sustainable. growth and investment that are sought would In particular we must not flinch from the budcrumble away, leaving us with an even more dif- getary discipline necessary to complement the ficult situation. tax relief so desirable to foster incentives, invest- These basic dilemmas and conflicts cannot be ment, and increased productivity in our society. painlessly escaped by some technical change in We must seize other opportunities to deal with monetary technique. I welcome informed debate price and wage rigidities and to promote producon those matters—after all they are part of our tivity. We need to face up to the hard job of job and we want to draw on all the wisdom and achieving valid regulatory objectives at less cost. evidence we can get to do our job better. But We need to keep our markets open to comthe world at large—the real world of huge pro- petitive forces at home and from abroad. longed deficits, of wage bargaining that builds in It is a difficult agenda for action. But the rerising costs for years ahead, and of enormous wards are enormous, for along that road lies the pressure to protect established competitive posi- opportunity for achieving growth as we restore tions and living standards even when productiv- stability. I know of no other. • SUPPLEMENTARY STATEMENT The New Operating Procedures The point was to underscore, in terms of public perception and debate, the central importance The new operating procedures announced on Oc- of maintaining control over monetary growth and tober 6, 1979, were described at the time as plac- bank reserves to deal with inflation and to dising "greater emphasis in day-to-day operations cipline better our internal policymaking with reon the supply of bank reserves and less emphasis spect to monetary and credit growth, thus enon confining short-term fluctuations in the feder- hancing our ability to achieve our objectives. al funds rate."1 The change was introduced at a Earlier, policy judgments typically took the form time when inflationary expectations were rising of action to influence changes in money market dangerously and the expansion of credit and the interest rates in the direction and amounts money supply was exceeding objectives. deemed consistent with money supply or other objectives, and in the short run, efforts were made to constrain those interest rates within a 1. Federal Reserve announcement of October 6, 1979, rather narrow range. However, in a changing in- FEDERAL RESERVE BULLETIN, vol. 65 (October 1979), p. 830. flationary environment, judgments about the ap- The new operating procedures are described more fully in propriate level of money market rates had, at appendix B to the Monetary Policy Report to Congress, February 19, 1980. least within very broad limits, become increas- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Monetary Policy 947 ingly unreliable as a gauge or guide to policy, and • Avoid judgments about the appropriate defiin the then existing market circumstances, per- nition of "money" during a period of rapid insticeptions (right or wrong) that changes in money tutional change and inflationary distortions. market rates would be limited seemed to be en- • Substitute for ongoing appraisal of the signifcouraging banks and other lending institutions to icance of changing economic and financial condimarket credit aggressively. tions for monetary growth. Obviously, the change in technique reflected Certainly, experience over the past several the significance we attach to monetary growth years suggests that the relationship between the targets, and we felt the change enhanced our growth of the various money stock concepts, as prospects for hitting those targets over a period best we can measure them statistically, and the of time. But I must also stress that no change in performance of the economy is not tight or imoperating technique can achieve the following: mutable over relevant periods of time. In other • Resolve the issue of what the appropriate words, we have to be prepared for, and analyze growth targets should be. the significance of, changes in the turnover or ve- • Eliminate the looseness—indeed the insta- locity of money. bility, evident particularly in the short run—in the relationship between changes in money, economic activity, and inflation. 2. Annual growth in selected monetary aggregates in major industrial countries1 Percent MMoosstt Country rreecceenntt and aggregate 1. Quarterly variability of growth in selected 1976 1977 1978 1979 1980 qquuaarrtteerr i ' monetary aggregates in major industrial countries Narrow money '•..'•"..'••.. | Canada: M-l 2.6 10.4 11.0 4.8 6.3 Q3 Average Variation Variation France: M-l 11.5 8.9 12.3 10.8 9.6 Q2 Country annual in growth relative to Sample Germany: M-l 7.3 9.9 13.3 4.6 1.0 Q3 and aggregate growth around average period Japan: M-l 15.2 5.3 12.4 6.9 4.7 Q2 (pe r r a c t e e n t) av r e a r te a 1 g e growth2 S U w ni i t t e z d e r K la i n n d g : d M om -l : M-l 1 7 3 . . 6 5 1 5 8 . . 2 7 2 1 1 5 . . 9 4 1 - 0 .2 .9 -16 2 .7 .3 Q Q 2 3 United States: M-l A 5.5 7.7 7.4 5.0 4.0 Q3 (1) (2) (3) (4) N C a a r n r a o d w a : m M o - n l ey 8.8 ' 1 7 ' .1 , . f .1 .80 1973 Ql- B C r a o n a a d d a m : o M n - e 2 y 13.3 12.0 12.4 17.5 16.1 Q3 1980 Q3 France: M-2 14.6 12.8 13.4 13.5 11.9 Q2 France: M-l 10.4 5.4 .52 1973 Ql- Germany: CBM 9.1 9.4 11.8 6.1 4.5 Q3 I 1980 Q2 Japan: M-2 14.6 10.5 12.5 10.8 8.8 Q2 Germany: M-l .... 7.6 5.7 .75 1973 Ql- Switzerland: M-2 2.2 7.3 7.9 11.1 28.2 Q2 J 1980 Q3 United Kingdom: £M-3 .... 10.8 7.3 14.0 13.0 17.9 Q3 Japan: M-l 10.7 6.9 .65 1973 Ql- United States: M-2 13.7 11.5 8.4 8.9 9.6 Q3 j 11998800 QQ22 Switzerland: 1. Growth is measured from the fourth quarter of previous year; the M-l 4.2 10.9 2.59 1972 Ql- 1980 Q2 1980 figure is the seasonally adjusted growth between 1979 Q4 and the United Kingdom: most recent quarter for which data are available, expressed at an an- M-l 11.5 8.9 .78 1973 Ql- nual rate. 1980 Q3 United States: M-l A 5.5 2.8 .50 1973 Ql- 1980 Q3 I know of no substantial body of economic Broad money analysis that suggests that fluctuations in mone- Canada: M-2 14.0 3.7 .27 1973 Ql- 1980 Q3 tary growth over a monthly, quarterly, or even France: M-2 I 13.4 3.4 .26 197 1 3 98 Q 0 l Q - 2 somewhat longer period— if they are sub- GGeerrmmaannyy:: CCBBMM .... 7.8 2.9 .37 1973 Ql- sequently reversed—are significant in terms of 1980 Q3 Japan: M-2 12.3 3.4 .28 1973 Ql- the evolution of economic activity or inflation 1980 Q2 over a period of time. Indeed, all the evidence Switzerland: M-2 8.8 8.4 1.00 1975 Q4- suggests that the economic effects of develop- 1980 Q2 United Kingdom: ments with respect to the money supply are £M-3 j 12.6 7.5 .60 1973 Qlspread out over considerable time; there is a kind 1980 Q3 United States: of natural smoothing process in the transmission M-2 9.3 3.1 .34 1973 Ql- 1980 Q3 1 belt. The simple fact is that the short-run move- : ments of the measured monetary aggregates are 1. Measured by standard deviation. 2. Column 2 divided by column 1. characterized by a considerable amount of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

948 Federal Reserve Bulletin • December 1980 "noise;" ironing out these fluctuations would be quirements. Because banks are encouraged adextremely difficult technically.2 ministratively to seek out other sources of funds Our current operating techniques automatical- before turning to the discount window, varialy "lean" against deviations in money growth to tions in pressures on reserve positions of banks help ensure that such deviations do not cumulate will affect money market interest rates and, in in one direction or another. Even so, short-term time, their lending or investment policies and the fluctuations in money growth (or in other related money supply. If money growth nonetheless magnitudes such as reserves or the monetary base) moves more clearly "off course," action can be can sometimes raise questions about our basic taken to speed the adjustment process by further policy intentions and thus influence expectations constricting or expanding the supply of nonabout market developments and the economy borrowed reserves. among those constantly probing for clues as to a Because there is a large amount of day-to-day change in our objectives or in the economic and fi- variation in the supply of and demand for renancial market outlook. Unwarranted "expecta- serves, owing to such uncontrollable factors as tional" effects, which can for a time influence variations in float or shifts of deposits within the market attitudes and behavior, can perhaps only banking system, it is inevitable that greater be worn away by experience over time. That short-run variability in the federal funds rate will seems to me the likely result if we can success- occur than was the case when the basic approach fully demonstrate that we do indeed take serious- entailed constraining movements in that rate ly our monetary goals and that those goals are within a narrow band. Movements in the funds appropriate to our economic circumstances and rate over somewhat longer periods might also objectives. The change in our operating pro- have been expected to be sharper under the new cedures, combined with established procedures operating procedure because they are no longer for the formulation and explanation of our mone- dependent on a "policy" decision as to the "aptary targets, have been designed to those ends. propriate" rate level but rather reflect the tight- More specifically, the procedure adopted in ening or easing of bank reserve positions that oc- October 1979, emphasizing reserve "paths" and curs when the monetary aggregates (and "targeting," offered the prospect of avoiding therefore the demand for reserves) deviate from persistent over- or undershoots of money and their short-run targets. This does not mean that credit growth. In that sense the procedure com- the federal funds rate—and, more important, inplemented steps taken earlier to end the practice terest rates on instruments of longer maturities, of shifting the base for monetary targets forward which are in any event beyond the immediate inevery quarter. In simple terms, our present oper- fluence of the Federal Reserve—would necessarating procedure involves, in the first instance, di- ily be expected to exhibit wider "cyclical" recting the Manager of the System Open Market swings. With less likelihood of cumulative diver- Account to buy and sell securities with a view to gences of money from desired paths, there could providing the volume of nonborrowed reserves be reason to look forward to milder cyclical (the only portion of reserves subject to close swings in the economy and perhaps in interest short-run control) thought consistent with the rates as well. targeted level of the money stock. Of course what we have actually experienced If the money stock (particularly M-l, to which in 1980 is substantial short-run volatility in both most reserves are directly related) begins to money and interest rates, combined with unusumove off the targeted path, banks will find it nec- ally sharp movements in economic activity and essary to borrow more or less reserves through inflation, as measured or anticipated. These dethe discount window to meet their reserve re- velopments have been interrelated in complex ways. However, it seems to me that to associate those developments primarily with the new oper- 2. These short-run fluctuations, here and abroad, are more ating techniques would be wrong. The past year pronounced in the narrow M-l definition of the money sup- has been one of extraordinary instability in the ply. Indeed, the evidence suggests the short-run instability of economic environment in which monetary policy M-l has generally been considerably more pronounced in other countries. is conducted. Dangerous turmoil in the Middle Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Monetary Policy 949 East, another tremendous surge in energy prices, bulence in financial markets. However, coincithe shifting prospects for the federal budget, the dentally or not, monetary growth after that temporary imposition of credit controls, short- remained well within our targets and rather term swings in the direction of economic activity stable from month to month until early February. that confounded forecasters, substantial varia- However, as growth in M-l and other monetary tions in the rate of increase in major price in- measures picked up sharply in February, memdexes, and recurrent swings of sentiment about ber banks needed more reserves to meet their reinflation and the economic outlook all left a serve requirements. Because the path for nonstrong mark on financial markets. borrowed reserves had been designed to Against this backdrop of unsettlement and the accommodate only targeted increases in the narassociated volatility of expectations, it would be rowly defined money stock, member banks unreasonable to expect that either interest rates found it necessary to turn to the discount winor the demand for money would exhibit great sta- dow in larger amounts to obtain the reserves they bility. I recognize that fluctuations in money required. Because of the reluctance of banks to growth and interest rates did, on occasion, raise borrow for significant periods of time at the disquestions about our intentions, in that sense con- count window, reinforced by our guidelines limtributing to financial market uncertainty. But I iting access to the discount window, increased must also note that the expressed concerns, borrowings are normally associated with presmore often than not, have been inconsistent. For sures on short-term market rates as banks are ininstance, during the spring when the narrowly duced to slow credit expansion. defined money supply and interest rates were We took two additional steps in February that both falling sharply, some interpreted the decline served to reinforce the restraint on expansion of in interest rates as indicative of a "retreat" by money and credit. One was to lower the prethe Federal Reserve from the fight on inflation. viously established path for nonborrowed re- Others interpreted the decline in the money sup- serves, thereby increasing pressure on the reply as aggravating recessionary forces. Under serve positions of member banks and inducing the existing conditions, it seemed self-evident restraint on their lending and portfolio policies. that more aggressive action to increase monetary The other step was a hike of 1 percentage point in growth would have tended to reduce interest the discount rate.3 rates still further, or vice versa. Yet, so long as The decision to reinforce the pressures arising observers from different schools of economic more or less automatically from the maintenance thought differ in their interpretations, concerns of a fixed path for nonborrowed reserves was of the sort voiced seem bound to arise. based on several considerations. The first was simply the magnitude of the runup in some of the monetary aggregates. Bank credit, too, had been Operations Since October 6, 1979 growing at a particularly rapid pace in January and February, with business loan increases of 20 Looking back, we can observe three rather dis- percent or more at an annual rate. These deviatinct phases in monetary developments during tions from our ranges were of particular concern the period of the new operating procedures: Oc- because of other developments affecting the intober 1979 to March 1980, April through July, flationary outlook and expectations. and August to the present. These periods roughly The preceding few weeks had seen a very sericorrespond to spans, first, of strong credit and ous deterioration in public confidence in the govmonetary growth and rising interest rates; sec- ernment's ability and resolve to rein in inflation. ond, of falling or sluggish monetary growth and The Soviet invasion of Afghanistan led to disdeclining interest rates; and then again, of strong cussion of enlarged defense outlays that might monetary growth and rising rates. add to federal budgetary deficits; outsized in- The introduction of the new techniques in October, coming at a time of strong money and 3. The strongest pressure on reserve positions did not decredit growth and mounting inflationary expecvelop until mid-February and later, partly because of lags in tations, was accompanied by considerable tur- reporting and reserve accounting procedures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

950 Federal Reserve Bulletin • December 1980 creases in consumer and producer prices caused rate for frequent borrowing from the discount alarm, even though they should have been window by larger banks. largely anticipated on the basis of previous Over the second half of March, most market changes in prices of the Organization of Petro- interest rates rose further, but following the new leum Exporting Countries and in mortgage rates; action, perceptible weakening of money and soaring prices for gold and silver both reflected bank credit soon became apparent. By early and reinforced fears of accelerating inflation; and April, interest rates were on the decline. These there was some anxiety that the traditional tools developments accelerated, and while the full of monetary policy might prove inadequate to re- magnitude of the decline in the money supply strain aggregate demand pressures. On the last was apparent only some time after the event, the score, many analysts had been surprised by evi- temporary contraction was large. M-l A, for exdence that sales and orders had registered strong ample, declined at an unprecedented annual rate gains at the turn of the year in the face of histori- for a single month of WU percent in April. cally high nominal rates of interest. By May, the decline had ended. Renewed Perhaps the most dramatic manifestation of growth in late spring and early summer neverthe intensification of inflationary expectations theless left M-l A and M-1B low relative to the was the disarray in the bond markets. Bond Federal Open Market Committee's objectives for yields had begun to soar in late January, even several months. Bank credit continued to conbefore the money markets (and M-l) had begun tract through June. Meanwhile the broader agto firm. Postponements and cancellations of of- gregates, M-2 and M-3, while declining or flat for ferings became numerous, and fears were ex- a time, generally remained within target ranges. pressed for the future of the long-term bond mar- The extraordinary falloff in M-l and bank credkets. it, which reduced reserve needs, was quickly re- During the formulation of a revised budget and flected in the repayment by member banks of disother economic measures by the administration count window borrowings. As the magnitude of to deal with the dangerous inflationary potential, the decline in the aggregates became apparent, the Federal Reserve continued to restrain its pro- the Federal Reserve also acted to reverse the vision of reserves, and the money markets clear- earlier reduction in nonborrowed reserves and to ly reflected the tightening of reserve availability. maintain the volume of total reserves. The rapid Short-term market interest rates rose to record expansion in nonborrowed reserves in April and levels, although bond prices began to stabilize as May essentially offset the decline in adjustment the market responded to indications that the gov- borrowing by member banks, which was reduced ernment was developing a strong anti-inflation to a frictional minimum by late May. After that, program. nonborrowed reserves were provided at a rate On March 14, the President announced a set of believed consistent with restoring over time the measures to fight inflation, including steps taken narrow monetary aggregates to their longer-run in consultation with the Congress to cut federal target ranges. expenditures and work toward a balanced bud- Several characteristics of that period are worth get. He also authorized the Federal Reserve to emphasizing for they bear on questions of both employ the extraordinary powers of the Credit technique and policy. First was the fact that only Control Act. As you know, under the authority the narrow money stock measures, M-l A and of that act, we took certain measures to restrain M-1B, were deviating appreciably from our longermore directly the expansion of credit, including a run ranges. The narrow money stock is characspecial deposit requirement on growth of certain teristically much more volatile than the broader consumer credit and money market mutual funds measures, not only in the United States but also and a tightening of marginal reserve require- in other countries. Partly for that reason and ments on managed liabilities of big banks. In ad- partly because of broader considerations, some dition the Federal Reserve undertook a volun- students of monetary policy tend to place more tary program to restrain bank lending and added weight on the broader aggregates. Indeed, a a 3-percentage-point surcharge to the discount number of foreign countries engaged in the prac- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Developments in Monetary Policy 951 tice of monetary targeting focus exclusively on a sawing of the money markets. Conversely, if the broader aggregate. change in velocity reflected a more permanent The relative weakness in M-l A and M-1B dur- desire to hold less cash by the public, the existing ing the early spring was clearly exceptional in targets for M-l would be, in economic effect, less terms of the typical behavior of transaction bal- restraining on inflation than had been anticiances relative to other key economic variables. pated. Either possibility argued for some caution To be sure, real gross national product dropped in dealing with the M-l shortfall. abruptly, and nominal GNP came to a standstill The other consideration involved more directin the second quarter. Such a sharp reduction in ly the potential impact of a deeper decline in innominal GNP growth ordinarily would be ex- terest rates, which would have been the immedipected to reduce demand for transaction balanc- ate consequence of a more generous provision of es. During the spring, however, cash holdings reserves to boost monetary growth. We have, as fell substantially faster than nominal GNP you know, emphasized the limitations of using growth. The velocity of money, instead of falling interest rates as a reliable indicator of the thrust as it normally does in a recession, rose sharply, of monetary policy. Nonetheless, we had to recsuggesting among other things that rapid repay- ognize that, even against the backdrop of a dement of consumer and other debt following the clining money stock, the already precipitous despecial measures of credit restraint led, in the cline in interest rates might be misread as a first instance, to depleted cash balances. In prac- fundamental reversal of policy—a lessening of tice, the effects of the credit control program our resolve to fight inflation. Such a false intercannot be separated from other influences, in- pretation could only have undermined the ulticluding the strong possibility that earlier record mate success of that effort; a perceived weakenlevels of interest rates induced deposit holders to ing in the fight on inflation would, in turn, minimize demand deposits while searching for ultimately impair prospects for a sustained ecomore renumerative ways of using spare cash. nomic recovery. The same uncertainty about our In these circumstances, matters of judgment objectives could have complicated our task furarose as to how aggressively to supply reserves ther by undermining confidence in the dollar on to restore M-l to the established growth path. On foreign exchange markets. The exchange value one side, the sharpness of the decline in business of the dollar did go through a wide swing over the activity itself—which was then forecast to con- first and second quarters, largely in response to tinue for some time—might have suggested an ef- the relative movement of U.S. and foreign interfort to restore M-l to "path" as quickly as pos- est rates. As it turned out, however, a cumulasible to avoid any risk of exacerbating the tive downward movement that would have redownturn. But there were powerful consid- flected eroding confidence was avoided. erations on the other side. Account had to be These considerations remained relevant as taken of the probability that the decline of inter- some recovery of the monetary aggregates conest rates itself would tend to increase money tinued into July. By that time, the average levels growth later in view of the lags in response in the of M-l A and M-1B were only slightly under the banking system and among money holders. Ac- lower bounds of the FOMC's longer-run growth count had to be taken, too, of the likelihood that ranges for these aggregates, while M-2 and M-3 special efforts connected with repayment of debt were in or moving into the upper halves of their during the credit restraint program would tend to ranges. At that point, in testifying before the be reversed as the public sought to restore de- Congress, I indicated that, in the light of the conpleted cash balances. tinuing inflationary problem, I did not feel that If the drop in M-l turned out to be an extraor- aggressive actions to push M-l higher were dedinary, self-reversing deviation from past norms sirable, even though the business outlook rerelated to lags and the credit restraint program, mained cloudy. then strong action taken to offset it by pressing Within a matter of weeks, our concerns beexcess reserves on banks might have had to be came quite different, as a pattern of more rapid quickly reversed, leading to a purposeless whip- monetary expansion developed. That pattern Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

952 Federal Reserve Bulletin • December 1980 came to threaten our ability to achieve our tar- sure was reinforced on several occasions by regets for the year. ducing the provision of nonborrowed reserves. In retrospect, the persistent high rate of mone- Total bank reserves have, to be sure, expanded tary growth since July appears excessive; how- sharply—a mechanical concomitant of the rise in ever, as events unfolded the picture was one of M-l—but banks have had to borrow those reconsiderable ambiguity. Much of the extraordi- serves from the Federal Reserve; we have not nary growth took place in a single week in Au- supplied them on our own initiative through the gust when the M-l figures jumped about $10 bil- open market. The need to exert restraint has also lion. We know that weekly figures often are been reflected in changes in the discount rate as unreliable indicators of trends, and available pro- market rates rose. jections suggested that the increase was probably Interest rates generally have, as you know, risin large part an aberration. Indeed, data for a few en substantially since August. The restraint on subsequent weeks showed declines, and it was reserve and money growth has clearly played a not until well into September that our growth tar- role in this rise, but a number of other factors gets appeared in any jeopardy. have also been important, particularly in the From our present vantage point, it seems clear long-term markets. The unexpected brevity of that the early and surprisingly sharp upturn in ec- the recession, the related revival of acute cononomic activity in midsummer led to more de- cern about inflation, and the possibility of submand for money, importantly accounting for the stantial tax cuts resulting at least for a time in sharp rise in the narrow monetary aggregates. larger deficits led borrowers and lenders to an- The extent of that rebound in economic activity ticipate higher interest rates. was not clearly apparent until data were received The past few weeks have seen some tendency in late September and October. Nevertheless, as for growth in the monetary aggregates to modersoon as monetary growth picked up, our oper- ate. It is clearly a matter of judgment whether ating techniques "automatically" began to bring actions already taken will maintain monetary bank reserve positions under mild pressure as growth precisely within the desired path, but use of the discount window increased. That pres- plainly operations are directed to that end. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

953 Treasury and Federal Reserve Foreign Exchange Operations: Interim Report This interim report, covering the period August By August, U.S. interest rates were rebounding through October 1980, is the sixteenth of a series from their latest lows, and a sudden surge in the providing information on Treasury and System growth of the monetary aggregates gave rise to foreign exchange operations to supplement the some expectations that interest rates might adregular series of semiannual reports that are vance even further. usually issued each March and September. It The market's uncertainties were not limited to was prepared by Scott E. Pardee, Manager of the outlook for the dollar. Most other major in- Foreign Operations of the System Open Market dustrial countries were afflicted with inflation Account and Senior Vice President in the For- rates, which were too high by their own staneign Function of the Federal Reserve Bank of dards, and by substantial current-account defi- New York. cits, which had been aggravated by the oil price increases of 1979 and early 1980. The authorities Coming into the period under review, partici- had pursued restrictive policies to deal with pants in the exchange market remained cautious these problems. By late summer, economic about the outlook for the dollar. Traders were growth was slackening generally, prompting the encouraged by the improving trend in the U.S. authorities in several countries to move cautiouscurrent account, which had swung from deep ly toward a less restrictive policy stance. But audeficit to near balance and was expected to move thorities were reluctant to move too quickly in into surplus by late 1980. At the same time, how- the direction of ease in view of the need to fight ever, they were concerned about the outlook for inflation and of their efforts to keep interest rates inflation in the United States. Even though U.S. sufficiently high to attract funds from abroad to price indexes were no longer rising as rapidly as finance large current-account deficits. As a rebefore, inflation remained uncomfortably high by sult, interest rates remained high even as market historical standards and by comparison with in- expectations built up that, in light of domestic flation rates in many other industrial countries. economic considerations, an easing of monetary Moreover, the improvements in U.S. current-ac- policy was imminent in several countries. count and price performance might prove transitory to the extent that they stemmed from the 1. Federal Reserve System activity under reciprocal sharp recession that had emerged in the United currency arrangements, July 31-October 31, 19801 States earlier in 1980. Millions of dollars equivalent; drawings, or repayments (-) Meanwhile, discussion of possible tax cuts or Commit- August Commitof an easing of monetary policy had generated Transactions with ments, through ments, July 31, 1980 October 1980 Oct. 31, 1980 concern in the market that heavy stimulus to the economy might undercut the anti-inflation effort. Bank of France 166.3 -165.22 0 German Federal For its part, the Federal Reserve had phased out Bank 879.7 -873.02 0 the special credit restraints imposed in March, Total 1,046.0 —1,038.22 0 but Chairman Volcker had made it clear that the Federal Reserve would continue to adhere to its 1. Because of rounding, details may not add to totals. Data are on a transaction-date basis. efforts to slow the growth of money and credit in 2. Repayments include revaluation adjustments from swap renewthe United States by placing primary emphasis als, which amounted to $1.1 million for drawings on the Bank of France and $6.7 million for drawings on the German Federal Bank, on bank reserves rather than on interest rates. which were renewed during the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

954 Federal Reserve Bulletin • December 1980 Consequently, an uneasy atmosphere per- 2. U.S. Treasury securities, sisted in the exchange markets through August foreign currency denominated1 and early September as traders sought to assess Millions of dollars equivalent; issues, or redemptions (-) the implications of the economic and financial August Commitments, Commitments, developments here and abroad. In addition, the Issues July 31, 1980 through Oct. 31, 1980 October 1980 sense of unease was heightened from time to Public series time by political events, such as general strikes Germany 5,233.6 0 5,233.6 in Poland and continued tensions in the Middle Switzerland .... 1,203.0 0 1,203.0 East. In this environment, exchange rates fluc- Total 6,436.6 0 6,436.6 tuated widely day to day, but few clear trends 1. Data are on a value-date basis. developed, with the exception that both sterling and the Japanese yen were bid up by the force of heavy capital inflows. Among the currencies par- rate was expected to accelerate. Moreover, the ticipating in the joint float arrangement, the money and credit aggregates were growing rapidly. French franc remained near the top of the band In response to this buildup in the demand for and the German mark near the bottom. money, the Federal Reserve acted to constrain the In the absence of renewed selling pressures on growth of bank reserves. Market interest rates the dollar, the U.S. authorities took the opportu- climbed sharply, and on September 26 the Federnity to acquire currencies to repay debt arising al Reserve raised the discount rate 1 percentage from earlier intervention and to rebuild balances. point to 11 percent. Strong demand for money Operating on days in which the dollar was firm or and credit persisted through October, putting rising, the U.S. authorities bought a total of additional upward pressure on money market $426.6 million equivalent of German marks in the rates. market, either in New York or in Frankfurt The advance of U.S. interest rates was not through the agency of the German Federal Bank. matched abroad where, if anything, the authori- Over the same period, the Federal Reserve ties were becoming increasingly concerned about Trading Desk purchased an additional $453.6 mil- slower economic growth and the prospect of relion of marks from correspondents. The Federal cession. Consequently, interest differentials Reserve used a portion of these marks along with swung increasingly in favor of the dollar against previously acquired balances to repay its swap most major currencies, prompting flows of funds debt to the German Federal Bank; the swap debt into dollar-denominated assets. Much of this was reduced from $879.7 million at the end of pressure fell on the German mark, in view of July to $362.6 million on September 15. The re- Germany's low nominal interest rates relative to maining acquisitions were added to Treasury rates abroad and its sizable current-account defibalances, which increased by $338.1 million cit. Funds were shifted out of marks not only into equivalent. The Federal Reserve also bought dollars but also into sterling and French francs. small amounts of French francs and Swiss francs Within the European Monetary System (EMS), in the market and from correspondents. On five the German mark and the French franc were different days when the dollar came under selling pushed to their respective intervention points, pressure in August, the U.S. authorities inter- and the German Federal Bank and the Bank of vened, selling a total of $69.6 million equivalent France were obliged to absorb substantial of marks, including $53.9 million equivalent from amounts of marks against francs. At the same Federal Reserve balances and $15.7 million from time, the EMS currencies as a group declined U.S. Treasury balances. against the dollar. By mid-September, economic indications sug- As a result of the flow of funds into dollar asgested that the United States was moving out of sets, the dollar rose in October to end the threerecession. Although the upturn was welcomed by month period up a net 7 percent against the Gerthe markets, it dimmed the prospects for further man mark and other currencies in the EMS, 372 relief from inflation in the near term. Indeed, part- percent against the Swiss franc, and l3/s percent ly because of rising food prices, the U.S. inflation against the Canadian dollar. Over this same peri- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Currency Operations: Interim Report 955 od, sterling rose a net 43/s percent against the 3. Net profits and losses (-) on U.S. Treasury and dollar, and the yen moved up by 7a/s percent. Federal Reserve foreign exchange operations1 With the dollar in demand, the U.S. authorities Millions of dollars stepped up their acquisitions of currencies to U.S. Treasury repay debt and to rebuild balances. Operations FFeeddeerraall were conducted in New York, Frankfurt, and on PPeerriioodd RReesseerrvvee S E ta x b c il h i a z n at g i e o n General occasion the Far East. When strong one-way Fund Account pressures emerged late in October, the Trading Aug. 1 through Oct. 31, 1980 14.0 .1 0 Desk intervened, sometimes forcefully, in the Valuation profits and market as a buyer of German marks. Purchases losses on outstanding assets and liabilities of marks in the spot market totaled $1,770.7 mil- as of Oct. 31, 1980 12.7 -372.8 138.8 lion between mid-September and the end of Octo- 1. Data are on a value-date basis. ber. Moreover, as part of the effort to repay debt and rebuild balances, the U.S. authorities pur- serve also took advantage of opportunities to buy chased a total of $346.6 million of marks from cor- $158.6 million equivalent of French francs to respondents, divided about equally between the complete repayment of its swap debt with the System and the Treasury and $132.9 million of Bank of France. outright forward marks on behalf of the Treasury. From August through October, the Federal As a result, the Federal Reserve was able to Reserve realized $14 million in profits on its forcomplete liquidation of its swap debt with the eign exchange operations and the Exchange Sta- German Federal Bank by the end of October. bilization Fund (ESF) realized $0.1 million. As of Besides mark purchases, the U.S. authorities the end of the period, the Federal Reserve bought over the three-month period $87.5 mil- showed valuation profits of $12.7 million on its lion equivalent of Swiss francs, including $25 foreign exchange assets while the ESF showed million equivalent in the market and $62.5 valuation losses of $372.8 million on its foreign million equivalent from correspondents. Of this exchange assets. The General Account showed amount, $62.6 million equivalent was added to valuation profits, related to the outstanding is- System balances and $24.9 million equivalent sues of Treasury securities denominated in forwent into Treasury balances. The Federal Re- eign currencies, of $138.8 million. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production Released for publication December 16 creased 3.4 percent, reflecting continued sharp gains in iron and steel; moderate increases oc- Industrial production increased an estimated 1.4 curred in other metals and in parts for consumer percent in November, after upward-revised in- durable goods and equipment. Output of noncreases of 1.8 and 1.5 percent respectively for durable goods materials increased 0.8 percent, October and September; the index rose 1.0 per- after gains of more than 2 percent in each of the cent in August. In November, output gains were three preceding months. Production of energy large for most product and material groupings. materials rose slightly in November. At 148.5 percent of the 1967 average, the index was 5.8 percent above its recent low in July but Seasonally adjusted, ratio scale, 1967 = 100 remained 2.5 percent below its year-earlier level. TOTAL INDEX 160 MATERIALS OUTPUT —— Output of consumer goods increased 0.8 per- 140 cent in November. Autos were assembled at an PRODUCTS OUTPUT 120 annual rate of 6.9 million units, about 3 percent I 1 I I I I higher than in October; recently reduced indus- MATERIALS: try schedules indicate a decrease in December. Nondurable , Production of home goods rose 0.8 percent in Durable,.-/ November, a smaller increase than in any of the preceding three months, and output of consumer nondurable goods rose 0.6 percent, somewhat J I I L _L_ more than in the past few months. Equipment CONSUMER GOODS: Durable ^ V output also increased more than in other recent Nondurable months; this is one of the few major components / CONSTRUCTION SUPPLIES of the industrial production index for which pro- J100 duction is above that of a year earlier. Output of Annual rate, millions of units 1967 = = 100 16 - MANUFACTURING: - 180 business equipment, which had declined about 160 — Nondurable^-— 3.6 percent between March and June, has risen A / \ vA/ 1 40 —- \ J 2.1 percent since then. Production of construc- \V Durable - 120 y i i i i tion supplies increased 2.0 percent further in No- 1 100 vember. Federal Reserve indexes, seasonally adjusted. Latest figures: Novem- Production of durable goods materials in- ber. Auto sales and stocks include imports. 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee GGGrrrooouuupppiiinnnggg 1980 1980 NNNooovvv... 111999777999 tttooo Oct.p Nov.e June July Aug. Sept. Oct. Nov. NNNooovvv... 111999888000 Total industrial production 146.5 148.5 -1.7 -.8 1.0 1.5 1.8 1.4 -2.5 Products, total 146.8 148.1 -.8 .2 .7 .9 1.2 .9 -1.1 Final products 145.6 146.8 -.6 .1 .3 .7 1.3 .8 -.2 Consumer goods 146.4 147.6 -.2 -.1 .5 1.0 1.6 .8 -1.0 Durable 139.5 141.6 -.5 .1 .2 3.3 5.0 1.5 -5.3 Nondurable 149.1 150.0 -.1 -.1 .6 .2 .3 .6 .7 Business equipment 171.9 173.4 -1.2 .2 .1 .2 .7 .9 .5 Intermediate products 151.3 152.8 -1.8 .7 2.1 1.7 .8 1.0 -4.6 Construction supplies 140.1 142.9 -3.4 . 1 3.5 3.3 1.9 2.0 -9.2 Materials 146.1 149.0 -3.0 -2.5 1.5 2.5 2.8 2.0 -4.6 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

957 Statements to Congress Statement by Lyle E. Gramley, Member, Board years to reduce the distinctions among different of Governors of the Federal Reserve System, be- financial institutions. fore the Committee on Banking, Housing, and Changes in the U.S. financial system have Urban Affairs, U.S. Senate, November 21,1980. been occurring at a rapid pace over the past two decades. An evolutionary process is under way I am pleased to present the views of the Board of that is profoundly affecting the structure and per- Governors on amendment No. 1586 to the A. formance of the financial industry. It has in- Phillip Randolph Institute Bill (H.R. 5625). This volved banks, thrift institutions, nonfinancial amendment would modify section 4 of the Bank businesses, individuals, and financial regulatory Holding Company Act to prohibit banking organ- institutions—all interacting in response to ecoizations from acquiring a savings bank, a savings nomic forces. A major initiating source of this and loan association, or a savings and loan hold- process has been the dramatic increase in intering company except when necessary to prevent est rates that has accompanied accelerating inflaan insolvency or to restore solvency. tion. Each rise of interest rates has brought with The issue of affiliations between commercial it new efforts to capitalize on the time value of banks and thrift institutions is an important one money. Repeatedly, banks and thrift institutions for the evolution of the financial sector of the have faced usury ceilings and other regulatory economy. The Board has long believed that this constraints that limit profit-making opportunities issue should be the focus of careful study and and deposit rate ceilings that limit the ability to congressional consideration. The need to do so is pay market rates of return to businesses and indiheightened by the fact that the distinctions be- viduals. As a result, depositors have shifted tween banking organizations and thrift institu- funds elsewhere in search of higher yields. To tions are narrowing. However, the Board be- avoid regulatory and statutory constraints and to lieves that an indefinite moratorium on such protect their sources of funding, financial instituaffiliations is not desirable. What is needed is tions have responded by creating new intimely resolution by the Congress of the broad struments—certificates of deposit (CDs), negopublic policy issues posed in this area, and we tiable order of withdrawal (NOW) accounts, doubt that a moratorium would contribute to that money market certificates, automatic transfers, development. Moreover, depository institutions, and others; new technologies—such as electronand especially thrift institutions, have experi- ic fund transfer; new concepts of funds manageenced a significant decline in earnings recently, ment—such as remote or controlled disand pressures on earnings may persist as these bursement and reliance on short-term liabilities institutions adapt to changes in the competitive as a source of liquidity; and even new markets environment created by recent legislative and and institutional forms. regulatory actions. These developments have had profound ef- The Board feels that the public interest would fects on the structure and functioning of the U.S. best be served by a flexible regulatory frame- financial system. The expanded array of services work capable of responding to special situations has resulted in a blurring of the distinctions bethat may arise. A moratorium would only in- tween banks and thrift institutions and even betroduce additional rigidities into the regulatory tween depository and nondepository institutions. system. Regulations limiting the ability of institutions to Let me begin by reviewing briefly the econom- pay market rates of return have become increasic forces that have been operating during recent ingly ineffective. Barriers to the free flow of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

958 Federal Reserve Bulletin • December 1980 funds among markets have been reduced, and companies whose activities are on the pergeographical mobility of funds has increased missible list. greatly. The bank holding company form of or- The issue of whether or not to include thrift ganization, besides enhancing leverage possi- institution activities on the permissible list for bilities, has served as a vehicle enabling intra- bank holding company acquisitions has come up state expansion within states with restrictive on several occasions since the enactment of the branching laws and expansion beyond state 1970 amendments to the Bank Holding Company boundaries, particularly with respect to the lend- Act. Beginning in May 1971, with the adoption of ing activities of nonbank affiliates. This interstate its initial list of permissible activities and in each expansion, together with the growth and multi- instance thereafter, the Board has consistently state presence of foreign banking organizations, ruled in the negative on this general issue. The has called attention to the need for a careful re- Board noted that the Congress had created a sepview of the present restrictions on interstate arate statutory and regulatory framework for banking. savings and loan associations, reflecting its intent These changes in the financial system contrib- to maintain savings and loans as specialized lenduted to passage of the Depository Institutions ers to finance housing. Because of that, the Deregulation and Monetary Control Act of 1980. Board felt that affiliations between banks and By providing for a phaseout of Regulation Q, for thrift institutions involved broad public policy expanded asset powers for thrift institutions, and matters that the Congress should address. for NOW accounts and automatic transfers, the The most recent case involving the general isact will encourage a further homogenization of sue was in 1977, with the application of D. H. depository institutions, especially in the field of Baldwin to retain a savings and loan acquired beconsumer services. The act also sought to pro- fore the 1970 amendments became effective. The vide competitive equality between banks and Board again concluded that operating a savings thrift institutions offering nearly identical serv- and loan was impermissible for bank holding ices but subject to different regulatory con- companies for several reasons. The Board noted straints. The act would not result, however, in that there were conflicts between the regulatory complete equality in the regulatory treatment of frameworks for bank holding companies and financial institutions even when fully in effect. thrift institutions, especially with respect to the Federal savings and loan associations, for ex- nonbanking activities that thrift institutions and ample, have broader branching powers within bank holding companies are permitted to engage states and are subject only to regulatory, and in. The Board felt that it could not resolve this not to statutory, restrictions on interstate ex- conflict nor could it limit the activities of thrift pansion. institutions so as to fit within the standards of the As the distinctions between banks and thrift Bank Holding Company Act. The Board also institutions diminish further, it will become in- stated that such acquisitions might erode the creasingly difficult to rationalize the maintenance beneficial institutional rivalry between thrift inof barriers to consolidation between bank hold- stitutions and banks. Finally, the Board recoging companies and thrift institutions. We are al- nized that, as the powers of thrift institutions ready faced with an anomalous situation. Bank were expanded and they became more like holding companies are permitted to acquire other banks, acquisitions of thrift institutions by outcompanies meeting the statutory criterion of pro- of-state bank holding companies would undercut viding services that are 4 4 so closely related to the interstate restrictions of section 3(d) of the banking or managing or controlling banks as to Bank Holding Company Act. be a proper incident thereto," such as consumer The only exceptions to the Board's general finance and mortgage banking firms. But the policy in this regard have been cases in Rhode Board has not generally permitted bank holding Island and New Hampshire, where such affiliacompanies to acquire thrift institutions, which tions have been permitted because of the unique are more similar to banks in terms of the types of banking structures in those states. In both states, services they offer than many of the nonbanking state law permits mutual associations to own Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 959 commercial bank stock, and virtually all thrift in- negative laundry list. The Board has consistently stitutions, with the exception of credit unions, opposed such attempts because of the limits that are affiliated with commercial banks. Moreover, would be placed on the ability to adapt the reguin the most recent case, involving New Hamp- latory structure to a changing competitive and shire institutions, the Board indicated that the economic environment. In any event, the legislaexceptions made for New Hampshire and Rhode tion seems to us defective in several ways. Island were not to be viewed as signaling a de- First, acquisitions of thrift institutions in New parture from the principles set forth in the D. H. Hampshire and Rhode Island already approved Baldwin case. by the Board would need to be explicitly grand- In light of the changes in the financial system fathered; otherwise, they might have to be diand competitive environment presently under vested. way, the Board would urge the Congress to ad- Second, whereas the amendment would prodress the issues in a purposeful way of whether, hibit banks or bank holding companies from acwhen, and under what circumstances, thrift insti- quiring thrift institutions, the amendment does tutions and commercial banks should be allowed not prohibit them from acquiring banking organito merge or join forces under a holding company zations. structure. We feel it is particularly important to Third, the language of the act relating to acquiinvestigate fully the legal, supervisory, com- sitions in emergency situations does not provide petitive, and other implications of affiliations be- the flexibility needed for the Board to permit actween banks and thrift institutions, especially at quisitions before insolvency becomes imminent. this crossroads in the evolution of the financial Moreover, the proposed legislation does not prosystem. We would be pleased to prepare a timely vide for suspension of the notice requirements in study of the issues so as to facilitate early consid- emergency situations, as is the case in emergeneration by the Congress. The Board believes it cy bank acquisitions under section 3 of the Bank would be appropriate also for the Federal Depos- Holding Company Act. The Board would not be it Insurance Corporation and the Federal Home able to act until proper notice and opportunity Loan Bank Board to prepare separate studies be- for a hearing had been given. This might telecause they would provide their unique experi- graph to the public that a particular thrift instituences as regulators of mutual savings banks and tion was in financial difficulty. savings and loan associations. Finally, the Board believes that if a moratori- As I have already indicated, there are impor- um is imposed, it should have a terminal date of tant reasons why the Board does not feel that this no more than one year to encourage the Conlegislation is desirable. In addition to these con- gress to deal in a timely way with the broad iscerns, this legislation would establish a type of sues involved. • Statement by John E. Ryan, Director, Division crecy Act). In response to the request of Chairof Banking Supervision and Regulation, Board man Minish, my testimony will respond to the of Governors of the Federal Reserve System, be- interim report of the General Accounting Office fore the Subcommittee on General Oversight and (GAO) concerning the efforts of the federal bank Renegotiation of the Committee on Banking, Fi- regulatory agencies to monitor compliance with nance and Urban Affairs, U.S. House of Repre- the provisions of this act. As background, howsentatives, December 3, 1980. ever, I think it may be useful to the subcommittee to spell out briefly the role and re- I am pleased to appear before this subcommittee sponsibilities of the Federal Reserve relative to and to participate on behalf of the Federal Reserve the act and to detail some of the background de- System in these hearings on the Currency and velopments that have brought us to this point. Foreign Transactions Reporting Act (Bank Se- As a bank supervisory and regulatory agency, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

960 Federal Reserve Bulletin • December 1980 the Federal Reserve refers to the appropriate law ment agencies and with the Treasury in seeking enforcement agency evidence of possible crimi- compliance with the Bank Secrecy Act. nal conduct that is brought to light through the We would agree with the GAO, however, that Federal Reserve's examination powers. In addi- there have been compliance problems with the tion, the Federal Reserve issues, redeems, de- Bank Secrecy Act. Some of these problems, as stroys, and processes currency for member the GAO quite correctly points out, were due to banks and has provided technical expertise to vague and imprecise regulations that left room law enforcement agencies on banking matters in for wide-ranging interpretations and created connection with drug-related investigations. Fur- mammoth "loopholes." Some were also due to ther, the Federal Reserve has specific responsi- the difficulties that a number of commercial bilities for monitoring compliance of the financial banks, particularly smaller institutions, were institutions under its direct supervision with the having in devising compliance mechanisms and requirements of the Bank Secrecy Act. This re- in understanding the requirements as their responsibility was delegated to the Federal Re- sources were being strained by a surge of new serve and other bank regulatory agencies by the regulations and paperwork. Finally, some of the Department of the Treasury, which has primary problems were undoubtedly a result of the need responsibility for the enforcement of the statute. for more comprehensive procedures to monitor As a result of its responsibilities for processing and enforce compliance. currency and coin, the Federal Reserve cooper- Recent amendments by the Treasury Departates with the Treasury Department by providing ment to the implementing regulations that tighten information concerning currency flows into and exemption procedures for the filing of currency out of the Reserve Banks and their branches that transactions reports have removed many ambiresult from the requests of banks for currency guities. We agree with the GAO assessment that and coin. A recent study by the Treasury Depart- these revisions should result in more consistent ment showed what appeared to be unusually interpretation and reporting. Moreover, we beheavy inflows of currency at the Miami Branch lieve that these changes will facilitate more efof the Federal Reserve Bank of Atlanta, particu- fective compliance monitoring. larly in $50 and $100 bills, denominations that are With respect to the compliance commitment of reportedly popular with narcotics operatives. the financial institutions themselves, we believe Based on the records of the Federal Reserve and that the overwhelming majority of senior manthe currency transactions reports filed by banks, agement of the financial institutions under the sua number of financial institutions in Florida were pervision of the Federal Reserve would not knowselected for review for compliance with the Bank ingly permit their institutions to be used as Secrecy Act. vehicles for laundering narcotics-related monies The three federal bank regulatory agencies, in- and that compliance with the requirements of the cluding the Federal Reserve, conducted special Bank Secrecy Act is generally good. Neverexaminations of the Florida financial institutions theless, in an effort to reinforce the compliance that had been selected. Those examinations for commitment of financial institutions, the Federal which the Federal Reserve was responsible were Reserve, on September 17, 1980, forwarded a letconcluded, and the findings were forwarded to ter to the chief executive officers of the instituthe staff of the Treasury Department on July 3, tions under its supervision requesting a review of 1980. procedures to insure that employees were being Besides these recent special examinations, properly trained concerning the requirements of Federal Reserve examiners have responded to the regulations and that adequate internal conrequests from the Internal Revenue Service and trols were in place to insure compliance with the the Justice Department for technical assistance Bank Secrecy Act. in connection with investigations of possible vio- The examination procedures followed by the lations of the Bank Secrecy Act by financial insti- Federal Reserve to monitor bank compliance tutions. In short, we believe the Federal Reserve with the Bank Secrecy Act have evolved over has cooperated diligently with the law enforce- time and have expanded as our experience with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 961 enforcement has broadened. The original com- submitted (4789s and 4790s), the list of custompliance checklist was worked out in consultation ers exempted from reporting, and the volume of with the Treasury Department after the issuance cash shipped to and/or received from the Federal of the regulations in mid-1972. In March 1976, Reserve Bank or a correspondent bank. In addirepresentatives from the federal banking regula- tion, the examiner must require a senior official tory agencies and the Treasury Department de- to certify in writing that the financial institution is signed more detailed examination guidelines, in compliance with the recordkeeping and reportwhich were forwarded to the examiners for im- ing requirements of the regulations. plementation. If the financial institution's performance is In 1980, new and more comprehensive exami- found deficient as a result of the phase 1 review, nation procedures, based on those in place at the the examiner proceeds to the more exhaustive Federal Reserve Bank of New York, were devel- phase 2 procedures. We believe that this phased, oped by staffs of all of the federal regulatory progressively extensive scope of examination agencies working under the aegis of the Federal will lessen the regulatory burden imposed on Financial Institutions Examination Council. those institutions in compliance with the regula- These revised procedures (which are appended tions, conserve limited examiner resources, and to my testimony) are currently being field tested still bring to light any institutions that may have by the agencies.1 They have also been recently circumvented the recordkeeping and reporting reviewed by staffs of both the Treasury Depart- requirements of these regulations. An exception ment and the GAO and were modified to take in- to this approach will be made in connection with to account the concerns expressed by GAO staff examinations of selected institutions, particularand by Senior Associate Director Arnold P. ly those located in geographic areas where there Jones of the GAO in his testimony before this has been a reported high incidence of drug-trafsubcommittee. ficking. For these examinations, the examiner These new examination procedures are com- will complete both phases as a matter of routine. prised of two separate phases that are progres- In conclusion, it is my opinion that the recent sively extensive in scope. In the first phase, the changes in the regulations, the steps being taken examiner must establish that the financial institu- by the Treasury Department to make greater use tion has appropriate operating and auditing stan- of the reported data, and the new examination dards and determine that the institution has es- procedures will improve the level of compliance tablished a program of employee education with with the Bank Secrecy Act by financial instituregard to the requirements of the regulations, tions. However, compliance with the act and the and that operations personnel are sufficiently monitoring and enforcement of it are costly both knowledgeable about these requirements. Phase to the government and to the private financial in- 1 also contemplates actual review of the reports stitutions. Because of these costs, we urge that periodic reviews such as the one being conducted by this subcommittee be made to assure 1. The attachments to this statement are available on that public benefits commensurate with costs are request from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. being derived from these efforts. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

962 Announcements CHANGE IN DISCOUNT RATE PROPOSED ACTIONS AT FEDERAL RESERVE BANKS The Federal Reserve Board has issued revised The Federal Reserve Board has announced an in- proposals for simplifying its Regulation Z (Truth crease in the basic discount rate from 11 percent in Lending), which implements the Truth in to 12 percent and the adoption of a surcharge of 2 Lending, Fair Credit Billing, and Consumer percentage points on frequent use of the discount Leasing Acts. The Board requested comment by window by large borrowers. January 19, 1981. These actions, effective November 17, 1980, were taken in view of the current level of shortterm market interest rates and the recent rapid POLICY STATEMENT growth in the monetary aggregates and bank FOR PROTESTED APPLICATIONS credit. The surcharge above the basic discount rate The Federal Reserve Board on December 4, will apply to borrowings for short-term adjust- 1980, announced adoption of a policy statement ment purposes of institutions with deposits of for the handling of protested applications under $500 million or more. It will be charged when dis- the Bank Holding Company and Bank Merger count borrowing occurs in two or more succes- Acts, for membership in the System, and for new sive weeks in a calendar quarter or when borrow- branches of state member banks. ing takes place in more than four weeks in a The policies set forth are intended to provide calendar quarter. better notice to the public of applications to In adopting the changes, the Board approved expand bank holding companies, merge financial actions by the boards of directors of the 12 Fed- institutions (or for certain other applications reeral Reserve Banks. The discount rate is the in- quiring the Board's approval), provide for public terest rate that is charged for borrowings from meetings when appropriate, and generally imthe District Federal Reserve Banks. prove on existing procedures. The Board also adopted technical amendments Subsequently, in light of the level of market to its Rules of Procedure concerning notice rerates and consistent with existing policy to re- quirements to give effect to certain provisions strain excessive growth in money and credit, the of the policy statement. These procedures are Federal Reserve Board announced an increase in expected to be of assistance to individuals, the basic discount rate from 12 to 13 percent, ef- groups, or others desiring to protest applications fective December 5. In addition, the surcharge that come before the Board, and to applicants applicable to larger banks that have a record of whose applications are protested. frequent borrowing was raised from 2 to 3 percentage points. In approving the increase, the Board acted on REGULATION Y: RULING requests from the directors of the Federal Reserve Banks of New York, Cleveland, Rich- The Federal Reserve Board has adopted a rule mond, Atlanta, St. Louis, Minneapolis, Kansas under Regulation Y (Bank Holding Companies) City, and San Francisco (and from the directors that adds the performance of real estate appraisof the Banks of Boston, Philadelphia, Chicago, als to the list of activities permissible for bank and Dallas, effective December 8). holding companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 963 The Board confirmed, in connection with an types of U.S. nonbanking activities may be enapplication by the First Chicago Corporation, Chi- gaged in by these institutions. cago, Illinois, that it regards two further activi- A foreign institution engaged in banking activities as falling within the scope of nonbanking ac- ties in the United States through a branch, agentivities already approved for bank holding cy, commercial lending company, or subsidiary companies. These are 44advising state and local bank is subject to the prohibitions on nonbanking governments about methods available to finance activities of the Bank Holding Company Act. real estate development projects' ' and "evalua- The Board made the following rulings: tion of projected income to determine for state 1. Foreign organizations, in order to qualify and local governments whether debt resulting for exemption, are required to be principally enfrom proposed development projects can be ade- gaged in the banking business outside the United quately serviced." States (that is, more than half of their businessexclusive of their banking business in the United States—must be banking and more than half of REGULATION K: AMENDMENTS their banking business must be outside the United States). The Federal Reserve Board has adopted rules re- 2. Foreign organizations that fail to qualify for vising provisions of its Regulation K (Inter- two consecutive years will no longer be entitled national Banking Operations) granting the to the exemptions. Board's general consent for member banks, 3. Foreign organizations that do not qualify Edge and Agreement corporations, and bank under the numerical criteria will have an opporholding companies to make certain additional in- tunity to petition the Board for specific determivestments in organizations in which they already nations as to eligibility for the exemptions. have an interest. 4. Permissible nonbanking activities in the The Board has established the general consent United States will be determined by reference to provision to give U.S. investors flexibility in the four-digit "establishment" category of the making their foreign investments and to mini- standard industrial classification (SIC). mize their regulatory burden. 5. Activities in the United States that are in- The revised general consent provisions are as cluded in division H of the SIC, with certain follows: (1) provision that dividends reinvested exceptions, may be engaged in only with specific within a year of receipt do not reduce the addi- Board approval. tional investment permissible under general consent; (2) application of the accumulation provisions retrospectively as well as prospectively; (3) COUNTRY EXPOSURE LENDING SURVEY limitation of the size of additional investments that can be made under the accumulation provi- International claims of U.S. banks with sizable sion of the general consent rules to 10 percent of foreign banking operations were about 20 perthe investor's capital and surplus; and (4) defini- cent higher at June 30, 1980, than a year earlier, tion of historical cost. and were up 8 percent in the first six months of 1980. This was reported on November 24, 1980, In addition, the Federal Reserve Board has is- by the Office of the Comptroller of the Currency, sued amendments to Regulation K dealing with the Federal Deposit Insurance Corporation, and the nonbanking activities of foreign bank holding the Federal Reserve Board. The report was companies and foreign banks that have banking based on a semiannual survey covering foreign offices in the United States. offices of 143 U.S. banking organizations. The Board's action implements certain limited Cross-border and nonlocal currency claims exemptions from prohibitions respecting non- amounted to $266 billion in June 1980, up from banking activities of these institutions. The regu- $221 billion at June 1979. The increase was prilations provide criteria to determine what foreign marily in short-term credits; claims with a matuinstitutions are eligible for exemption and what rity in excess of one year rose only $2.5 billion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

964 Federal Reserve Bulletin • December 1980 In addition, the survey indicated that local cur- one year or less. Only $19.6 billion in claims had rency lending to local borrowers by foreign of- a maturity in excess of five years. Short-term fices of U.S. banks increased $3.5 billion in the claims are especially prominent in the G-10 counfirst six months of 1980 to a total of $70.5 billion. tries and the offshore banking centers, where a The largest share of the increase in cross-bor- large volume of interbank lending takes place. der and nonlocal currency lending was the result Such placements of deposits are usually for short of higher claims on borrowers located in devel- periods. oped countries. Cross-border and nonlocal cur- For most other groups of countries, short-term rency lending to less developed countries that claims accounted for about half of the total are not members of the Organization of Petro- claims, although the proportion varied among leum Exporting Countries (OPEC) amounted to countries. $66 billion, an increase of about $4 billion in the first six months of 1980. Claims on these countries were 22 percent higher than at June 30, 1979. Type of Borrower Business with other banks accounted for the Types of Loans largest amount, equaling $147 billion. Most of the claims on banks were on those located in the The survey concentrated on data on lending from G-10 countries and the offshore banking centers. a bank's office in one country to residents of an- Private nonbank sector lending totaled $75 bilother country as well as in a currency other than lion, and loans to the public sector amounted to that of the borrowers. These are known as cross- $44 billion. This last category includes foreign border and cross-currency loans. central banks and commercial nonbank enter- Cross-border and cross-currency loans are prises owned by government. The distribution by those most closely associated with country risk. type of borrower varied significantly from coun- Such claims totaled $266 billion in June 1980. try to country. Claims on residents of Switzerland and the Group of Ten (G-10) developed countries and "offshore banking centers" (countries in which Guarantees multinational banks conduct a large international money market business) represent 57 percent of Cross-border and cross-country claims that are this total. Claims on residents of developing guaranteed by residents of another country are countries that are not members of OPEC amount reallocated from the country of residence of the to 25 percent of the total, about the same per- borrower to another country in two major ways. centage as for 1979. First, claims on a bank branch located in one In addition, the banks reported $70.5 billion in country when the head office is located in anothlocal currency claims that were held by their for- er country are allocated to the country of the eign offices on residents of the country in which head office. Since a branch is legally a part of the the office was located. An example would be parent, claims on a branch are treated as being deutsche mark claims on German residents held guaranteed by the head office. Second, claims on by the German branch of the reporting U.S. a borrower in one country, which are formally bank. Most of these local currency claims were guaranteed by a resident of another country, are funded by local currency liabilities due to local allocated to the latter country. These realloresidents; they amounted to $57 billion. cations are thought to provide a better approximation of country exposure in the banks' portfolios than the unadjusted figures. Maturities Most of the reallocations are accounted for by the transfer of claims on branches (and, when Nearly three-quarters of the reported cross-bor- guaranteed, subsidiaries) of banks to their head der and cross-country claims had a maturity of offices ($55 billion of $68 billion). In general, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 965 reallocations primarily affected the offshore serve requirements on the same funds twice: banking centers and some of the developed coun- once, when the funds advanced to the foreign tries. For example, claims on the offshore bank- branch are raised in this country, and again when ing centers decreased from $38 billion to $11 bil- they are used by a foreign office to purchase aslion and claims on the United Kingdom decreased sets from a domestic office or when they are lent from $43 billion to $24 billion. For most of the by a foreign branch of a domestic depository inless developed countries, a relatively small stitution to a resident of the United States. portion of claims is externally guaranteed. The total for claims on foreigners by country of guar- Subsequently, the Board amended Regulation antor is about $241 billion, or $25 billion less than D with respect to the period during which a the total for claims by country of borrower. This limited number of telephone or preauthorized results from U.S. residents guaranteeing claims transfers can be made in an account without on foreign residents and foreigners guaranteeing causing the account to become subject to a reclaims on U.S. residents. serve requirement on transaction accounts. Before revision, the regulation had specified that a depository institution could authorize Commitments to three or less telephone or preauthorized transfers Provide Funds for Foreigners of funds to be made within a calendar month from an account, without subjecting the account The survey also provided information on contin- to the reserve requirement on transaction acgent claims on foreigners. The banks reported counts. The amended regulation provides that only those contingent claims when the bank had the term "calendar month" includes any statea legal obligation to provide funds. The amounts ment cycle or similar period of at least four reported totaled $75 billion, 74 percent of which weeks for purposes of the three permissible is in the private sector, including banks. transfers. The Board also made a number of technical changes to Regulation D in the nature of clari- REGULATION D: AMENDMENTS fications and corrections of minor errors. The Federal Reserve Board has announced a revision of its Regulation D (Reserve Require- REGULATION C: AMENDMENT ments of Depository Institutions) affecting the calculation of Eurocurrency liabilities by domes- The Federal Reserve Board on December 1, tic depository institutions and by U.S. branches 1980, amended its Regulation C (Home Mortgage and agencies of foreign banks. These liabilities Disclosure) to require institutions to change from are being phased into a reserve requirement of 3 a fiscal- to a calendar-year basis for reporting of percent under Regulation D. mortgage loan data for 1980 under the Home Previously, in calculating Eurocurrency re- Mortgage Disclosure Act. Institutions that preserve requirements, loans of a financial institu- viously compiled data on a noncalendar-year tion in the United States to its offices abroad basis are required to prepare a separate diswere used only to offset funds received by the closure statement for that portion of 1979 not institution from its offices abroad. covered by the fiscal year ending before January As revised, the regulation permits an institu- 1, 1980. The Board established March 31, 1981, tion to use loans to foreign offices not only to off- as the due date for the 1980 disclosure stateset borrowings from foreign offices but also to ment and for the separate disclosure to cover offset the amount of assets sold to foreign offices the odd period before calendar year 1980. and, in the case of domestic depository institu- The Board's actions implement a portion of tions, loans by foreign branches to U.S. resi- the amendments to the Home Mortgage Disdents. closure Act contained in the Housing and Com- The change is intended to avoid imposing re- munity Development Act of 1980. Proposed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

966 Federal Reserve Bulletin • December 1980 amendments to implement other statutory provi- The Board also announced that it has apsions are expected to be published in January. proved more than a hundred recommendations by a committee of Federal Reserve Bank officials for improvement and standardization of services AVAILABILITY OF provided by Reserve Banks to financial institu- AGENCY ENFORCEMENT DOCUMENTS tions. The primary objective of the System committee, which identified areas for improvement The Federal Reserve Board has announced that, and developed means of providing a higher level effective November 26, 1980, it will make availor better quality of services in such areas, was to able to the public, on request, final agency enreduce inconsistencies in services provided by forcement documents or portions of such docuthe 12 Federal Reserve Banks in the areas of ments, issued by the Board to enforce the Truthcheck collection, cash handling, fiscal agency opin-Lending Act, the Equal Opportunity Act, the erations, and transfers of funds and securities. Fair Housing Act, the Fair Credit Reporting Act, The Board asked the Reserve Banks to make the the Electronic Fund Transfer Act, the Fair Debt improvements as soon as practicable but not lat- Collection Act, the Fair Credit Billing Act, and er than the end of 1981. The Board directed the the Community Reinvestment Act. Such docu- Banks to maintain contacts with those receiving ments and portions of documents will be made services in order to monitor the quality of Fedavailable without charge but with identifying eral Reserve services on a continuing basis. details relating to financial institutions and third parties removed to protect valid interests of confidentiality. This action was taken to accomplish CHANGES IN BOARD STAFF the fullest possible public disclosure of information consistent with valid interests of con- The Board of Governors has announced the folfidentiality. lowing staff changes. Donald J. Winn, Special Assistant to the HIGH-SPEED CURRENCY EXAMINATION Board, has been named Assistant to the Board for Congressional Liaison, effective Novem- The Federal Reserve Board has announced ber 17, 1980. adoption of a Systemwide program to improve James McAfee, has been appointed Assistant the quality of the nation's currency through the Secretary in the Office of the Secretary, effective use of high-speed electronic currency examina- about December 15. Mr. McAfee, who joined the tion equipment. Board's staff in 1976, holds a B.A. from Prince- As soon as practicable, but not later than 1984, ton University and a J.D. from the University of virtually all Reserve Bank offices will acquire Florida. sufficient high-speed equipment to scan electronically for fitness nearly all of the millions of used pieces of currency returned by banks to the NEW PUBLICATION Federal Reserve System annually. The currency examination machines are ca- Introduction to Flow of Funds, a revised descrippable of inspecting electronically 67,000 cur- tion of flow of funds accounts, is now available. rency notes per hour. The machines, which are This publication consists of the 53-page inalready being used in some parts of the System, troductory text on purposes, nature, and strucdetermine whether or not a currency note is fit ture of flow of funds accounts that was last pubfor return to use by the public. If the notes are fit lished in 1975. This version of the text has been for further use, the machines separate them ac- updated in terms of charts and definitions with cording to denomination and bind them into the September 1979 revision of the accounts. It packs. Notes that are determined to be unfit for does not include the tables themselves, which further circulation because they are excessively are available as annual data on request without soiled, have been torn and taped back together, charge, nor does it include the detailed descripor are otherwise mutilated are destroyed. tion of derivation methods. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 967 The price of the publication is $1.50 a copy; in period November 11, 1980, through December quantities of 10 or more sent to one address, 10, 1980: $1.25 each. Copies may be obtained from Publications Services, Board of Governors of the Colorado Federal Reserve System, Washington, D.C. , ^ I - J ^ H ^I 2Q551 AArapa hoe Counxty Orchard Valley Bank Kansas Ellsworth Citizens State Bank and SYSTEM MEMBERSHIP: , TRUST COMPANY ADMISSION OF STATE BANKS NEBRASKA Lincoln Gateway Bank and Trust The following banks were admitted to member- Oregon ship in the Federal Reserve System during the Prineville Prineville Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

968 Record of Policy Actions of the Federal Open Market Committee Meeting Held on October 21,1980 of existing homes, which had accelerated in July, rose somewhat fur- 1. Domestic Policy Directive ther in August. The information reviewed at this The index of industrial production meeting suggested that economic ac- rose an estimated 1 percent in Septivity had expanded in the third tember; the index had increased 0.6 quarter. According to preliminary percent in August after declining estimates of the Commerce Depart- somewhat more than 8 percent over ment, real GNP increased at an an- the previous six months. The innual rate of 1 percent in the quarter, crease in September, like that in Aufollowing a contraction at an annual gust, was broadly based and includrate of about 9lh percent in the sec- ed notable gains in output of ond quarter. Average prices, as mea- materials, construction supplies, and sured by the fixed-weight price index consumer home goods. The rate of for gross domestic business product, capacity utilization in manufacturing continued to rise at the annual rate increased nearly 1 percentage point of about IOV2 percent recorded in during August and September, folthe second quarter. lowing a cumulative decline of more The dollar value of total retail than 12 percentage points from the sales rose in September for the peak in March 1979. fourth consecutive month. Sales at Nonfarm payroll employment exfood stores and gas service stations panded in September for the second rose sharply, while combined sales consecutive month, and the unemat general merchandise, apparel, and ployment rate edged down from 7.6 furniture and appliance stores were to 7.5 percent. Employment gains unchanged, following large increases were especially strong in trade and in July and August. Sales of new au- service industries. Employment in tomobiles changed little in Septem- manufacturing rose further, and the ber, but for the third quarter as a length of the average workweek whole they were up substantially edged up to a level one-half hour from the depressed rate in the sec- above its July trough. ond quarter. Producer prices of finished goods Private housing starts rose consid- declined slightly in September, but erably further in September, to an they rose substantially on the averannual rate of more than 1.5 million age during the third quarter as a units. Most of the increase was in whole. At the consumer level, inmultifamily units and apparently re- creases in food prices accelerated flected a bulge in starts associated sharply in August, but prices of enwith federal subsidies at the end of ergy items continued to rise at a the fiscal year. In August, sales of greatly reduced pace and homeownnew houses declined somewhat, af- ership costs declined somewhat furter rising markedly over the previous ther; excluding those categories, three months, but the stock of un- consumer prices increased at about sold units fell further to its lowest the 8 percent pace that had prevailed level in more than four years. Sales since April. The rise in the index of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

969 average hourly earnings of private rate and other short-term interest nonfarm production workers moder- rates. Those pressures were intensiated in the third quarter, but the in- fied by an increase in Federal Recrease over the first nine months of serve discount rates from 10 to 11 the year was at an annual rate of 8V2 percent announced on September percent, about the same as in 1979. 25. In the days preceding this meet- In foreign exchange markets the ing, the funds rate was in the area of trade-weighted value of the dollar 12V2 to 13 percent, compared with against major foreign currencies had IOV2 to 11 percent in the days just risen somewhat on balance over the before the Committee's meeting on interval since the Committee's meet- September 16. ing in mid-September. The U.S. for- In September, M-l A and M-1B eign trade deficit in August remained grew at annual rates of 12V4 and at a level well below the monthly av- 15V4 percent respectively, down erage in the second quarter. The vol- markedly from the record rates set in ume and value of oil imports fell August but still far above the rates sharply in the July-August period, consistent with the Committee's obwhile the value of other imports was jectives for the period from August about unchanged and the value of to December. Expansion in M-2 exports increased. moderated further in September, to At its meeting on September 16, an annual rate of about 8V4 percent, the Committee had decided that reflecting in part a further slowing in open market operations in the period the growth of nontransaction acuntil this meeting should be directed counts included in that measure of toward expansion of reserve aggre- money. However, M-3 grew more gates consistent with growth of rapidly than M-2 for the first time M-l A, M-1B, and M-2 over the peri- since the spring, as both banks and od from August to December at an- thrift institutions stepped up their isnual rates of about 4 percent, 6V2 suance of large-denomination certifipercent, and 8V2 percent respective- cates of deposit and other managed ly, provided that in the period until liabilities. For the period from the the next regular meeting the weekly fourth quarter of 1979 through Sepaverage federal funds rate remained tember, growth of M-l A was just within a range of 8 to 14 percent. above the midpoint of the Com- Early in the intermeeting period, in- mittee's range for the year ending in coming data indicated that the mone- the fourth quarter of 1980; M-1B and tary aggregates, particularly M-l A M-2 grew at rates somewhat above and M-1B, were growing faster than the upper limits of their respective the rates consistent with the Com- ranges, and growth of M-3 was near mittee's objectives for the August- the upper limit of its range. to-December period. Required re- Expansion in total credit outserves and member bank demands standing at U.S. commercial banks for reserves expanded substantially was relatively rapid in September, in relation to the supply of reserves although somewhat below the Aubeing made available through open gust pace. Bank acquisitions of secumarket operations. Consequently, rities moderated in September from member bank borrowings for rethe brisk pace in the previous two serve-adjustment purposes increased months; but growth in total loans, insharply, to an average of $1.4 billion cluding business loans, accelerated, in the four statement weeks ending following a substantial increase in on October 15 from an average of August. Net issuance of commercial about $835 million in the preceding paper by nonfinancial corporations four weeks. These developments declined further in September. were associated with additional up- Short-term market interest rates ward pressures on the federal funds rose 5/s to IV2 percentage points fur- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

970 Federal Reserve Bulletin • December 1980 ther over the intermeeting period, might tend to sustain the recovery in while long-term rates changed little activity for a time, as consumers aton balance. Over the interval, com- tempted to maintain their standards mercial banks increased their loan of living or even to anticipate addirate to prime business borrowers tional increases in prices. Alternafrom 121U to 14 percent. In primary tively, consumer spending might be markets for home mortgages, aver- constrained by the low saving rate, age rates on new commitments for by increases in prices of foods and conventional loans at savings and other necessities, and by rising interloan associations rose to about 133/4 est rates. Similarly, concern was expercent from a little over 13 percent pressed that the rise in interest rates, at the time of the September meet- aggravated by the prospect of sizing. able budget deficits, would have sig- The staff projections presented at nificantly adverse consequences for this meeting suggested that the rise residential construction and busiin real GNP in the third quarter ness investment; but it was also sugmarked the beginning of a recovery, gested that in the current inflationbut a sluggish one that was likely to ary environment the higher levels of be associated with some further in- interest rates might have considcrease in the rate of unemployment erably less inhibiting effects than over the next few quarters. The pro- they would have had in the past. jections continued to suggest that At its meeting in July, the Comthe rise in the fixed-weight price in- mittee had reaffirmed the ranges for dex for gross domestic business monetary growth in 1980 that it had product would be somewhat less established in February. Thus, the rapid in 1981 than in 1980. Committee had agreed that from the During the Committee's dis- fourth quarter of 1979 to the fourth cussion of the economic situation, quarter of 1980, average rates of the members agreed that recovery in growth in the monetary aggregates economic activity had begun, and within the following ranges appeared several suggested that growth in real to be consistent with broad econom- GNP could well be greater in the ic aims: M-1A, Vh to 6 percent; current quarter than that incorporat- M-1B, 4 to 6V2 percent; M-2, 6 to 9 ed in the staff projections and greater percent; and M-3, 6V2 to 9xh perthan that in the third quarter. How- cent. The associated range for the ever, prospects for 1981 were viewed rate of growth in commercial bank with much more uncertainty, and credit was 6 to 9 percent. For the considerable skepticism was ex- period from the fourth quarter of pressed about the degree of con- 1980 to the fourth quarter of 1981, fidence with which consumer and the Committee looked toward a rebusiness behavior could be forecast duction in the ranges for growth of in the current environment. M-l A, M-1B, and M-2 on the order Major sources of uncertainty as of V2 percentage point from the well as of concern with regard to the ranges adopted for 1980, abstracting business outlook were the continued from institutional influences affectrapid pace of inflation and the sub- ing the behavior of the aggregates. stantial rebound of interest rates so It was understood that the longersoon after the turnaround in eco- run ranges would be reconsidered as nomic activity. In these circum- conditions warranted. stances, the outlook for consumer In contemplating policy for the pespending was very clouded. It was riod immediately ahead, the Comsuggested, for example, that contin- mittee noted that growth of the narued expansion in consumption ex- rower monetary aggregates in penditures and a further decline in September had substantially exthe already low personal saving rate ceeded the rates consistent with the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 971 growth objectives for the period September and thus would be confrom August to December adopted sistent with the growth rates for the at the meeting on September 16. period from August to December Those objectives in turn had been that had been adopted at the Comconsistent with growth for M-l A just mittee's meeting in September. Most below the midpoint of the Com- members, on the other hand, famittee's range for the year from the vored adoption of objectives that fourth quarter of 1979 to the fourth would contemplate slightly higher quarter of 1980 and with growth for growth over the final three months of M-1B just below the upper bound of the year, given the developments in its range. The members had recog- the aggregates since the last meetnized that, owing to shifts in the pub- ing, although they were willing to aclic's preferences for deposits of vari- cept lower rates of growth should ous types, growth of M-2 over the such rates emerge as a result of presyear might slightly exceed its range. sures already placed on bank re- According to a staff analysis, ex- serves. pansion in the public's demands for Those who favored the objectives money might be expected to slow precisely consistent with the growth substantially in the final three rates adopted at the preceding meetmonths of the year even with some ing believed that such a stated objecfurther pickup in growth of nominal tive was appropriate in the interest GNP, because of the substantial ac- of reducing inflationary expectations cumulation of cash balances in the and strengthening confidence. It was third quarter and the large increase considered in this context that, while in short-term interest rates since the differences discussed were midyear. The analysis also empha- small, the lower objective could betsized that the differential between ter assure the maintenance of growth growth of M-l A and M-1B would re- of M-1B, as well as that of M-1A, main appreciably greater than had within its range for the year, which been anticipated when the ranges for could be psychologically important. growth of the aggregates during 1980 The point was made, moreover, that were first adopted in February. very slow monetary growth in the In the Committee's discussion of course of the fourth quarter could be policy for the period immediately tolerated in view of the rapid growth ahead, all of the members favored in the third quarter, and also that pursuit of a sharp reduction in mone- such a development would contribtary expansion over the final three ute toward gradual year-to-year remonths of the year from the rapid duction in monetary growth. pace of recent months. The uncer- Other members, while also seektainty concerning projections of ing sharply reduced growth rates of much slower growth in the monetary the aggregates in the months ahead, aggregates was emphasized, and it attached less significance to targets was generally recognized that fur- precisely consistent with the Auther evidence that growth was pro- gust-to-December objectives adoptceeding faster than targeted in the ed a month earlier, in light of the short run would require greater pres- inherent volatility of the data in the sure on bank reserve positions. The short run. Committee actions affectmembers differed somewhat in their ed the money supply only with some views with respect to the precise lag, and given actions already in growth rate targets that should be place and the uncertainties in the adopted for the period ahead. A economic outlook, the possibility number of members favored growth could not be excluded that very amobjectives for the final three months bitious short-run objectives with reof the year that would arithmetically spect to restraint could generate uncompensate for the overshoot in desirable instability in both interest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

972 Federal Reserve Bulletin • December 1980 rates and the money supply over a raising the intermeeting range for the somewhat longer period and thus be funds rate from the range of 8 to 14 counter to the Committee's more percent specified at the September fundamental goals. These members meeting. agreed, however, that further in- At the conclusion of the disdications of excessive monetary cussion the Committee agreed that growth would need to be reflected in open market operations in the period further pressures on bank reserve until the next meeting should be dipositions. rected toward expansion of reserve During the Committee's dis- aggregates consistent with growth of cussion, most members agreed that M-1A, M-1B, and M-2 over the Septhe differences concerning the nu- tember-to-December period at annumerical targets for growth over the al rates of about 2xh percent, 5 perlast three months of the year should cent, and llU percent respectively, be reconciled by small adjustments or somewhat less, provided that in among the competing views, with the period before the next regular the general understanding that some meeting the weekly average federal shortfall from the specified rates of funds rate remained within a range monetary growth would be accept- of 9 to 15 percent. If it appeared dured. It was pointed out that, in light of ing the period before the next regular the recent excessive rate of mone- meeting that the constraint on the tary expansion, growth of M-1B federal funds rate was inconsistent could marginally exceed the upper with the objective for the expansion bound of its range for 1980 if increas- of reserves, the Manager for Domeses over the months ahead equaled tic Operations was promptly to notior exceeded the numerical specifica- fy the Chairman, who would then tions. In that connection, it was also decide whether the situation called emphasized that an inconsistency for supplementary instructions from had become apparent during the the Committee. course of the year between the long- The following domestic policy dier-run ranges for M-l A and M-1B rective was issued to the Federal Reas a result of faster-than-expected serve Bank of New York: growth of ATS and NOW accounts, The information reviewed at this which had been at the expense partly meeting suggests that real GNP inof demand deposits and partly of creased somewhat in the third quarter savings deposits or other sources of following the sharp contraction in the funds not included in M-l. In light of second quarter, while prices on the averthose developments during the past age continued to rise rapidly. The recovery in retail sales and housing starts that year, the range for growth of M-lB began in June continued during the third in 1980 presumably should have quarter. Industrial production and nonbeen somewhat higher than that ac- farm payroll employment expanded in tually adopted, while the range for September for the second consecutive month, and the unemployment rate M-l A should have been somewhat edged down from 7.6 to 7.5 percent. The lower, to achieve the intended ecorise in the index of average hourly earnnomic result. It was understood that ings moderated in the third quarter, but the agreed approach would be asso- the rise over the first nine months of the ciated with significant further pres- year was about as rapid as in 1979. The weighted average value of the dolsures on bank reserve positions if lar in exchange markets on balance has growth of the monetary aggregates risen somewhat over the past month. and the associated demands for re- The U.S. trade deficit in August reserves proved to be greater than an- mained well below the monthly average in the second quarter. ticipated. In light of the recent rise in M-l A and M-1B continued to grow the federal funds rate and the objecrapidly in September, although not so tive of sharply reducing monetary rapidly as in August, while growth in growth, sentiment was expressed for M-2 moderated further. From the fourth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 973 quarter of 1979 to September, growth of Schultz, Solomon, and Mrs. Teeters. M-l A was slightly above the midpoint of Votes against this action: Messrs. the range set by the Committee for Morris, Roos, Wallich, and Winn. growth over the year ending in the fourth quarter of 1980, while growth of M-lB Messrs. Morris, Roos, Wallich, and M-2 was somewhat above the upper and Winn dissented from this action limits of their ranges. Expansion in commercial bank credit was relatively rapid because, given the excessive monein both August and September. On bal- tary expansion in recent months, ance short-term market interest rates they favored specification of lower have risen considerably further since monetary growth rates for the period mid-September while long-term rates from September to December than have changed little; average rates on new home mortgage commitments have con- those adopted at this meeting. In tinued upward. An increase in Federal their view, such a policy stance was Reserve discount rates from 10 to 11 per- appropriate in order to enhance the cent was announced on September 25. prospects for restraining growth of The Federal Open Market Committee seeks to foster monetary and financial the monetary aggregates within the conditions that will help to reduce infla- Committee's ranges for the period tion, encourage economic recovery, and from the fourth quarter of 1979 to the contribute to a sustainable pattern of infourth quarter of 1980 and thereby ternational transactions. At its meeting contribute to restraining inflation. in July, the Committee agreed that these objectives would be furthered by growth of M-1A, M-1B, M-2, and M-3 from the 2. Authorization for Domestic fourth quarter of 1979 to the fourth quar- Open Market Operations ter of 1980 within ranges of Vh to 6 percent, 4 to 6V2 percent, 6 to 9 percent, and At this meeting the Committee 6V2 to 9V2 percent respectively. The asvoted to increase from $3 billion to sociated range for bank credit was 6 to 9 $4 billion the limit on changes bepercent. For the period from the fourth quarter of 1980 to the fourth quarter of tween Committee meetings in Sys- 1981, the Committee looked toward a re- tem Account holdings of U.S. govduction in the ranges for growth of ernment and federal agency securi- M-l A, M-1B, and M-2 on the order of ties specified in paragraph 1(a) of the V2 percentage point from the ranges authorization for domestic open maradopted for 1980, abstracting from institutional influences affecting the behavior ket operations, effective immediateof the aggregates. These ranges will be ly, for the period ending with the reconsidered as conditions warrant. close of business on November 18, In the short run, the Committee seeks 1980. behavior of reserve aggregates consistent with growth of M-l A, M-1B, and Votes for this action: Messrs. Volck- M-2 over the September-to-December er, Gramley, Guffey, Morris, Partee, period at annual rates of about 2lh per- Rice, Roos, Schultz, Solomon, Mrs. cent, 5 percent, and 1XU percent respec- Teeters, Messrs. Wallich, and Winn. tively, or somewhat less, provided that Votes against this action: None. in the period before the next regular meeting the weekly average federal funds rate remains within a range of 9 to 15 This action was taken in light of percent. projections indicating a need for sub- If it appears during the period before stantial reserve-absorbing operathe next meeting that the constraint on tions over the coming intermeeting the federal funds rate is inconsistent with interval to counter the effects of a the objective for the expansion of reserves, the Manager for Domestic Oper- significant reduction in required reations is promptly to notify the Chair- serves. The anticipated reduction man, who will then decide whether the was associated with the implementasituation calls for supplementary instruction in November of new regulations tions from the Committee. on reserve requirements under pro- Votes for this action: Messrs. Volck- visions of the Monetary Control Act er, Gramley, Guffey, Partee, Rice, of 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

974 Legal Developments AMENDMENTS TO REGULATION D business or that of other foreign affiliates of the controlling domestic corporation(s). The Board of Governors has amended Regulation D— (2) For a United States branch or agency of a for- Reserve Requirements of Depository Institutions—to eign bank, the sum, if positive, of the following: permit a U.S. depository institution or Edge or Agree- (i) net balances due to its foreign bank (including ment Corporation to use net balances advanced to its offices thereof located outside the United States) foreign branches to offset the amount of credit extend- after deducting an amount equal to 8 per cent of ed by its foreign branches to United States residents the following: The United States branch's or and the amount of assets sold to its foreign branches or agency's total assets less the sum of United States to foreign offices of an affiliated Edge or Agreement currency and coin, cash items in process of collec- Corporation. tion, unposted debits, balances due from deposi- Effective December 11, 1980, Regulation D (12 CFR tory institutions organized under the laws of the Part 204) is amended as follows: United States, balances due from other foreign banks, balances due from foreign central banks, In section 204.2, paragraph (h) is revised to read as and net balances due from its foreign bank and the follows: foreign bank's United States and non-United States offices, and Section 204.2—Definitions (ii) assets (including participations) held by its foreign bank (including offices thereof located outside the United States), by its parent holding com- (h) "Eurocurrency liabilities" means: pany, or by non-United States offices of an affili- (1) For a depository institution or an Edge or Agree- ated Edge or Agreement Corporation that were ment Corporation organized under the laws of the acquired after October 6, 1979, from the United United States, the sum, if positive, of the following: States branch or agency (other than assets re- (i) net balances due to its non-United States of- quired to be sold by Federal or State supervisory fices from its United States offices. authorities). (ii) assets (including participations) held by its non-United States offices or by non-United States offices of an affiliated Edge or Agreement Corporation that were acquired after October 6, 1979, AMENDMENTS TO REGULATION K from its United States offices, and (iii) credit outstanding from its non-United States The Board of Governors has adopted a final rule to offices to United States residents (other than as- amend provisions of Regulation K governing investsets acquired and net balances due from its United ments by member banks, Edge and Agreement Corpo- States offices), except credit extended (i) in the rations, and bank holding companies. aggregate amount of $100,000 or less to any Effective November 13,1980, Regulation K (12 CFR United States resident, (ii) by a non-United States 211) is amended as follows: office that at no time during the computation period had credit outstanding to United States resi- 1. By revising Section 211.5(c)(l)(ii) to read as follows: dents exceeding $1 million, or (iii) to an institution that will be maintaining reserves on such credit Section 211.5—Investments in Other pursuant to this Part. Credit extended to a foreign Organizations branch, office, subsidiary, affiliate or other foreign establishment ("foreign affiliate") controlled by one or more domestic corporations is not re- (c) Investment Procedures. garded as credit extended to a United States resident if the proceeds will be used in its foreign Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 975 (1) General consent. The Board grants its general AMENDMENTS TO REGULATION Y consent for the following: The Board of Governors has adopted a final rule that adds the performance of appraisals of real estate to the (ii) any additional investment in an organization list of those activities permissible for bank holding in any calendar year so long as (A) the investment companies. See the Board's Order on this action in does not cause the organization to be a direct or connection with an application by First Chicago Corindirect subsidiary or joint venture of the inves- poration on page 984 of this issue. tor; (B) the total amount invested in that calendar Effective December 31, 1980, section 225.4(a) of year does not exceed 10 per cent of investor's Regulation Y (12 CFR 225) is amended by adding the capital and surplus; and, (C) the total amount in- following new paragraph (14) immediately following vested under Part 211 in the current calendar year § 225.4(a)(13): does not exceed cash dividends reinvested pursuant to paragraph (iii) below plus the greater of Section 225.4—Nonbanking Activities (1) 10 percent of the investor's direct and indirect historical cost6 in such organization, or (2) 50 per cent of the investor's direct and indirect historical (a) ^ ^ ^ cost in that organization less any amounts invest- (14) Performing appraisals of real estate. ed in that organization during the previous four calendar years (excluding dividends reinvested pursuant to paragraph (iii) below); or BANK HOLDING COMPANY AND BANK MERGER ORDERS ISSUED BY THE BOARD OF GOVERNORS 2. By redesignating section 211.5(c)(l)(iii) as sec- Orders Under Section 3 of Bank Holding tion 211.5(c)(l)(iv), and adding a new section Company Act 211.5(c)(l)(iii) to read as follows: Banco Zaragozano, S.A., Section 211.5—Investments in Other Madrid, Spain Organizations Order Approving Formation of Bank Holding Company (c) Investment Procedures. Banco Zaragozano, S.A., Madrid, Spain, has applied for the Board's approval under section 3(a)(1) of the (1) General consent. The Board grants its general Bank Holding Company Act (12 U.S.C. § 1842(a)(1)) consent for the following: of formation of a bank holding company by acquiring 84.5 percent of the voting shares of Miami National Bank, Miami, Florida ("Bank"). (iii) any additional investment in an organization Notice of the application, affording opportunity for in an amount equal to cash dividends received interested persons to submit comments and views, has from that organization during the preceding 12 been given in accordance with section 3(b) of the Act. calendar months so long as such investment does The time for filing comments and views has expired not cause the organization to be a direct or in- and the Board has considered the application and all direct subsidiary or joint venture of the investor; comments received in light of the factors set forth in or section 3(c) of the Act (12 U.S.C. § 1842(c)). Applicant, a Spanish bank with total assets of approximately $1.5 billion, and total deposits of $1.0 bil- 6 The "historical cost" of an investment consists of the actual lion,1 is the seventeenth largest banking organization amounts paid for shares or otherwise contributed to the capital acin Spain and provides a broad range of commercial counts, as measured in dollars at the exchange rate in effect at the time each investment was made. It does not include subordinated debt or banking services through more than 150 branches in unpaid commitments to invest even though these may be considered that country. Bank, with total deposits of $42.1 milinvestments for other purposes of this Part. For investments acquired lion, is one of the smaller banking organizations in the indirectly as a result of acquiring a subsidiary, the historical cost to the investor is measured as of the date of acquisition of the subsidiary; at the net asset value of the equity interest in the case of subsidiaries and joint ventures, and in the case of portfolio investments, at the book carrying value. 1. All banking data are as of June 30,1980, unless otherwise noted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

976 Federal Reserve Bulletin • December 1980 greater Miami banking market (relevant market),2 con- § 1842(a)(1)) of formation of a bank holding company trolling about 0.5 percent of total commercial bank de- by acquiring 80 percent or more of the voting shares of posits in that market. Inasmuch as Applicant conducts Barrington State Bank ("Bank"), Barrington, Illinois. no banking operations in the United States, consum- Notice of the application, affording an opportunity mation of the proposed transaction would have no ad- for interested persons to submit comments and views, verse effects on existing or potential competition and has been given in accordance with section 3(b) of the would not increase the concentration of resources in Act. The time for filing comments and views has exany relevant area. Therefore, competitive consid- pired, and the Board has considered the application erations are consistent with approval of the appli- and all comments received, including those of the Illication. nois Commissioner of Banks and Trust Companies, in The financial and managerial resources of Applicant light of the factors set forth in section 3(c) of the Act are considered satisfactory and its future prospects are (12 U.S.C. § 1842(c)). favorable. Affiliation of Bank with Applicant will Applicant, a nonoperating corporation with no substrengthen the financial and managerial resources of sidiaries, was organized for the purpose of becoming a Bank, and, therefore, Bank's future prospects appear bank holding company by acquiring Bank, which holds favorable. Thus, considerations relating to banking deposits of $20.0 million.1 Upon acquisition of Bank, factors lend some weight toward approval of the appli- Applicant would control the 640th largest bank in Illication. nois and would hold approximately 0.03 percent of the Although consummation of the proposal would not total deposits in commercial banks in the state. immediately result in any change in the banking serv- Bank is the 273rd largest of 369 banking organizaices offered by Bank, considerations relating to the tions in the relevant market and holds approximately convenience and needs of the community to be served 0.04 percent of the total deposits in commercial banks are consistent with approval. Accordingly, the Board in the market.2 Three principals of Bank and Applicant has determined that consummation of the transaction are principals of four other one-bank holding comwould be in the public interest and that the application panies and their subsidiary banks. Even though three should be approved. of these organizations are located in the same banking On the basis of the record, the application is ap- market as Bank, any anticompetitive effect is mitiproved for the reasons summarized above. The trans- gated by the relatively small size of these organizaaction shall not be consummated before the thirtieth tions and the large number of banking alternatives calendar day following the effective date of this Order within the market. It appears from the facts of record or later than three months after the effective date of that consummation of the proposal would neither rethis Order, unless such period is extended for good sult in any adverse effect upon competition nor incause by the Board or by the Federal Reserve Bank of crease the concentration of banking resources in any Atlanta pursuant to delegated authority. relevant area. Accordingly, the Board concludes that By order of the Board of Governors, effective competitive considerations are consistent with ap- November 26, 1980. proval of the application. The Board has indicated on previous occasions that Voting for this action: Chairman Volcker and Governors a holding company should serve as a source of finan- Schultz, Wallich, Partee, Teeters, Rice, and Gramley. cial and managerial strength to its subsidiary banks, and that the Board would closely examine the condi- (Signed) JEFFERSON A. WALKER, tion of an applicant in each case with this consid- [SEAL] Assistant Secretary of the Board. eration in mind. While the financial and managerial resources and future prospects of Applicant's affiliated banks and bank holding companies are considered Barrington Bancorporation, Inc., generally satisfactory, in this case the Board con- Barrington, Illinois cludes that considerations relating to the financial resources and future prospects of Applicant warrant de- Order Denying Formation of a Bank Holding nial of this application. Company With respect to Applicant's and Bank's financial resources and future prospects, the Board notes that Ap- Barrington Bancorporation, Inc., Barrington, Illinois, has applied for the Board's approval under section 3(a)(1) of the Bank Holding Company Act (12 U.S.C. 1. Banking data are as of December 31, 1979, and reflect holding company formations and acquisitions as of June 30, 1980. 2. The relevant banking market is the Chicago banking market, 2. The greater Miami banking market is approximated by all of which is approximated by all of Cook and Page Counties and the Dade and Broward Counties. southern half of Lake County, Illinois. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 977 plicant would incur a sizeable debt in connection with of the Bank Holding Company Act (12 U.S.C. this proposal. Applicant proposes to service this debt § 1842(a)(1)) of formation of a bank holding company over a 25-year period through dividends to be declared by acquiring 100 percent of the voting shares of Seby Bank and tax benefits to be derived from filing con- curity National Bank ("Bank"), Lynn, Massachusetts. solidated tax returns. Applicant has also proposed to Notice of the application, affording an opportunity inject capital into Bank by donating to it Bank's build- for interested persons to submit comments and views, ing and land, which would be purchased from an affili- has been given in accordance with section 3(b) of the ate of Bank. Applicant anticipates that this capital in- Act. The time for filing comments and views has exjection, and the concurrent reduction in Bank's pired and the Board has considered the application and overhead expenses, would allow Applicant to service all comments received in light of the factors set forth in the acquisition debt while maintaining an adequate section 3(c) of the Act (12 U.S.C. § 1842(c)). capital level in Bank. However, in light of Bank's his- Applicant, a nonoperating corporation with no subtorical performance, Bank's earnings and growth pro- sidiaries, was organized for the purpose of becoming a jections appear overly optimistic. It is the Board's bank holding company through the acquisition of view that Bank is unlikely to have sufficient earnings Bank, which holds deposits of $93.18 million.1 Bank is to enable Applicant to service its debt, maintain ade- the sixteenth largest of seventy-six banking organizaquate capital at Bank, and meet any unforeseen prob- tions in the relevant market2 and controls 0.5 percent lems that might arise at Bank. Accordingly, the Board of commercial bank deposits in that market. Inasmuch concludes that considerations relating to the financial as Applicant controls no other bank and no principal of resources and future prospects of Applicant and Bank Applicant is a principal of any other bank located in lend weight toward denial of the application. the relevant banking market, consummation of this No significant changes in the services offered by proposed transaction would have no adverse effects on Bank are expected to follow from consummation of either existing or potential competition and would not the proposed transaction. Consequently, convenience increase the concentration of resources in any relevant and needs factors are consistent with, but lend no area. Therefore, competitive considerations are conweight toward, approval of this application. sistent with approval. On the basis of the circumstances concerning this Under the proposal, there would be a change in the application, the Board concludes that the banking con- control of Bank from individuals to a corporation siderations involved in this proposal present adverse owned by different individuals. The financial and manfactors bearing upon the financial resources and future agerial resources and future prospects of Applicant are prospects of Applicant and Bank. Such adverse fac- considered generally satisfactory. While Applicant tors are not outweighted by any procompetitive effects will incur debt in connection with the proposal, it apor by benefits to the convenience and needs of the pears that Applicant will be able to service the debt community. Accordingly, it is the Board's judgment without adversely affecting the financial condition of that approval of the application would not be in the Bank. In this regard, the Board has relied upon several public interest and the application should be denied. commitments by Applicant, including one to inject ad- On the basis of the facts of record, the application is ditional capital into the Bank immediately after condenied for the reasons summarized above. summation of this proposal without incurring any addi- By order of the Board of Governors, effective tional debt. Accordingly, banking factors are November 25, 1980. consistent with approval of the application.3 Voting for this action: Chairman Volcker and Governors Schultz, Wallich, Partee, Teeters, Rice, and Gramley. 1. All banking data are as of June 30, 1979. 2. The Boston banking market is approximated by the Boston (Signed) THEODORE E. ALLISON, RMA, the eighth largest RMA in the United States, which is com- [SEAL] Secretary of the Board. prised of 159 cities and towns or sections thereof. It includes all of Suffolk and Essex Counties, most of Middlesex, Norfolk, and Plymouth Counties, and small portions of Worchester and Bristol Counties. Also included are the SMSA's of Boston, Brocton, Lowell, Security Bancorp, Inc., and Lawrence-Haverhill. The area extends over the entire eastern coast of Massachusetts, excluding Cape Cod, but including 13 towns Boston, Massachusetts in southern New Hampshire. 3. In considering this application, the Board reviewed the relation- Order Approving Formation of a Bank Holding ship between Applicant and Gibbs Industries, Inc., Revere, Massachusetts ("Gibbs"), a retail oil supplier. Under the proposal, Gibbs Company would acquire all of Applicant's nonvoting preferred stock, which would represent 24.6 percent of Applicant's total equity. While such a sizeable investment interest together with other relationships could Security Bancorp, Inc., Boston, Massachusetts, has provide a basis for the institution of a control proceeding under secapplied for the Board's approval under section 3(a)(1) tion 2 of the Act, the Board has determined that such an action is not Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

978 Federal Reserve Bulletin • December 1980 Following consummation of the transaction, Appli- Bank Corporation, Madison, Wisconsin ("ABC"), a cant would assist Bank in offering a variety of new and registered bank holding company by virtue of its conexpanded services, including automated teller ma- trol of each of the following Wisconsin banks: Affiliatchines, revolving auto loan program, accounts receiv- ed Bank of Madison, Madison; Affiliated Bank of Hillable financing, equipment leasing programs and ac- dale, Hilldale; Affiliated Bank of Jamestown, counts receivable lock box collection services. Thus, Jamestown; Affiliated Bank of Middleton, Middleton; considerations relating to the convenience and needs and Affiliated Bank of Cambridge, Cambridge. As a of the community to be served are consistent with ap- part of the same proposal, Applicant has also applied proval of the application. Accordingly, it is the for the Board's approval under section 4(c)(8) of the Board's judgment that consummation of the Appli- Act (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of cant's proposal would be in the public interest and that the Board's Regulation Y (12 C.F.R. § 225.4(b)(2)) to the application should be approved. acquire all of the voting shares of ABC's nonbanking On the basis of the record, the application is ap- subsidiary, Affiliated Leasing Corporation, Madison, proved for the reasons summarized above. The trans- Wisconsin ("ALC"). ALC engages in equipment lease action shall not be made before the thirtieth calendar financing activities. This activity has been determined day following the effective date of this Order or later by the Board to be closely related to banking than three months after that date, unless such period is (12 C.F.R. § 225.4(a)). extended for good cause by the Board of Governors or Notice of the applications, affording opportunity tor by the Federal Reserve Bank of Boston, pursuant to interested persons to submit comments and views, has delegated authority. been given in accordance with sections 3 and 4 of the By order of the Board of Governors, effective Act. The time for filing comments and views has ex- November 10, 1980. pired, and the Board has considered the applications and all comments received in light of the factors set Voting for this action: Vice Chairman Schultz and Gover- forth in section 3(c) of the Act (12 U.S.C. § 1842(c)) nors Wallich, Partee, Teeters, Rice, and Gramley. Absent and the considerations specified in section 4(c)(8) of and not voting: Chairman Volcker. the Act (12 U.S.C. § 1843(c)(8)). Applicant, the second largest banking organization (Signed) THEODORE E. ALLISON, in Wisconsin, controls 20 banks with aggregate com- [SEAL] Secretary of the Board. mercial bank deposits of approximately $1.4 billion, representing 6.9 percent of the total deposits in commercial banks in the state.1 ABC, the eleventh largest Order Under Section 3 and 4 of Bank Holding banking organization in Wisconsin, controls five banks Company Act with aggregate deposits of approximately $285.2 million, representing 1.4 percent of the total commercial Marshall & Ilsley Corporation, bank deposits in the state. Upon consummation of the Milwaukee, Wisconsin proposal, Applicant would remain the second largest banking organization in the state. The Board has often Order Approving the Acquisition of Banks and a expressed its concern regarding the concentration of Nonbanking Company banking resources within a state and this concern has at times resulted in denial of applications presented to Marshall & Ilsley Corporation, Milwaukee, Wiscon- the Board. However, on the basis of all the facts of sin, a bank holding company within the meaning of the record in this matter, including the concentration of Bank Holding Company Act (the "Act"), has applied deposits in Wisconsin, a majority of the Board does for the Board's approval under section 3 of the Bank not view Applicant's acquisition of ABC as having a Holding Company Act (12 U.S.C. § 1842) to acquire significantly adverse effect upon the structure of bank- 90 percent or more of the voting shares of Affiliated ing in Wisconsin. The competitive effects associated with the subject proposal, in addition to the general effect upon the necessary in this case in light of certain commitments and representastructure of banking in Wisconsin, must be considered tions made by Applicant and Gibbs. In particular, Gibbs will be treated as an "affiliate" for the purposes of the limitations on loans within two separate banking markets—the Jefferson and investments imposed by section 23A of the Federal Reserve Act (12 U.S.C. § 371(c)), and commitments have been made to insulate Gibbs from any direct and indirect involvement or control of the operations and policy of Applicant and Bank. Moreover, there is no evidence to indicate that Gibbs' relationship with Bank is such that a 1. Unless otherwise indicated, all banking data are as of December finding of corporate control of Applicant or Bank is necessary or ap- 31, 1979, and reflect bank holding company formations and acquisipropriate at this time. tions approved as of September 30, 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 979 banking market2 and the Madison banking market.3 ternative entry point banks are located in areas which ABC is the second largest of 22 banking organizations are expected to grow slowly, or have experienced delocated in the Madison banking market. ABC controls clining or stagnant market shares. Third, Applicant four subsidiary banks in the Madison market, which has presented information that causes the Board to hold in the aggregate $272.4 million in commercial view Applicant as an unlikely entrant into the Madison bank deposits, representing 22.0 percent of total mar- banking market absent this proposal. In addition, ket deposits. ABC also is the sixth largest of 11 bank- among other facts of record considered by the Board ing organizations in the Jefferson banking market are that the Madison market is only moderately conthrough its control of one bank with deposits of $12.8 centrated, that the level of concentration has remained million, representing 7.8 percent of the total com- essentially unchanged in recent years, and that commercial bank deposits in the market. Since none of Ap- peting in the market are the first and third largest bankplicant's subsidiary banks has an office in either of ing organizations in Wisconsin. these banking markets, the facts of record indicate that With regard to the acquisition of ABC's subsidiary no significant amount of existing competition would be bank in the Jefferson banking market, it is the Board's eliminated upon consummation of the proposal. opinion, based on all the facts of record, including With respect to the effects of the proposal upon ABC's relative position in the market, that Applicant's probable future competition, the Board is principally proposed entry into the Jefferson banking market concerned with the adverse effects the proposal might would not have any significantly adverse competitive have within the Madison banking market. The Board consequences. ABC, on its own, does not appear cahas previously expressed its concern about the ad- pable of expanding beyond its present markets, and verse competitive effects resulting from the entry by thus may not be considered a reasonably likely entrant one of a state's larger banking organizations into met- into any of the markets currently served by Applicant. ropolitan markets through the acquisition of one of the The Board recognizes that consummation of the prolarger organizations in those markets. posal would have some adverse competitive effects in In this instance, the Board notes that Applicant has the Madison banking market as well as some adverse the financial and managerial resources to enter the effect upon the banking structure of Wisconsin. How- Madison banking market on either a de novo basis or ever, although the above and other facts of record, inthrough a foothold acquisition. A geographic market cluding the nature and relative size of the organization extension under those circumstances would represent to be acquired, the attractiveness and structure of the a more competitive form of entry into the Madison markets involved and the effects of the proposal on banking market. Nevertheless, such considerations convenience and needs of the communities to be are mitigated by several facts of record. First, based served, present a fairly close case, the Board is unable upon demographic and banking data, it appears that to conclude that consummation of this proposal would the Madison banking market is not particularly attrac- have such adverse competitive effects as to warrant tive for de novo entry. Second, Wisconsin law pro- denial of the application. vides a limited form of home-office protection so that As part of the subject proposal, Applicant has also Applicant's entry into the market through acquisition applied for the Board's approval to acquire ABC's of a smaller independent suburban bank would pre- nonbanking subsidiary, ALC, which engages in equipclude it from any meaningful competitive presence in ment lease financing activities. Applicant owns a leasdowntown Madison or the other suburban areas in the ing subsidiary, First National Leasing Corporation, Madison banking market. In this regard, the Board Milwaukee, Wisconsin, and has indirect control of two notes that the geography of the Madison market con- other leasing subsidiaries, Commerce Leasing Corpofines downtown Madison to a narrow strip of land be- ration and First Federal Leasing Corporation, both lotween Lake Mendota and Lake Monona, in which only cated in Milwaukee, Wisconsin. Although incorporatfive of the twenty-two banking organizations in the ed in 1972, ALC has not originated any new leases Madison market are located, with the remainder being since 1976; this is a result of Wisconsin law which perlocated in the suburban areas. Accordingly, Applicant mits state-chartered banks to engage directly in lease argues that multiple office entry is necessary to create financing. To the extent that approval of the proposal a meaningful competitive presence in the Madison would permit the continuation of these limited leasing market. The record also indicates that the possible al- activities, it appears that the proposal would be in the public interest. Furthermore, there is no evidence that Applicant's acquisition of ALC would result in undue 2. The Jefferson banking market is approximated by the southern half of Jefferson County and the five eastern townships in Dane Coun- concentration of resources, decreased or unfair comty, Wisconsin. petition, conflicts of interests, unsound banking prac- 3. The Madison banking market is approximated by the Madison tices or other adverse effects on the public interest. RMA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

980 Federal Reserve Bulletin • December 1980 The financial and managerial resources and future panies recently considered by the Board. We are quite prospects of Applicant and its subsidiaries are re- concerned that the majority's decision may encourage garded as generally satisfactory. This affiliation will re- other large bank holding companies in Wisconsin and sult in an increased availability of mortgage funds for elsewhere to eschew de novo or foothold entry into the communities served by ABC. In addition, ABC's concentrated metropolitan markets in the belief that subsidiary banks will be capable of offering new serv- the Board will approve less competitive means of enices to its customers, such as expanded trust and inter- try, including acquisition of other holding companies national services, investment and cash management having a potential for significant growth. services to small businesses, and loan participations. With respect to the specific proposal before us, we In light of the convenience and needs considerations believe that continuation of this trend would increase associated with this application and after considering the size disparity between the larger banking organizathe overall competitive impact that would result from tions in Wisconsin and all the other banking organizaconsummation of this proposal, a majority of the tions in the state. In addition, we feel the acquisition of Board has concluded that approval of this application Affiliated Bank Corporation by Marshall & Ilsley Corwould generally be in the public interest. poration will eliminate a banking organization that is a By order of the Board of Governors, effective viable, aggressive competitor in its present markets. November 19, 1980. Accordingly, consummation of this proposal would, in our view, have an adverse effect upon potential com- Voting for this action: Chairman Volcker and Governors petition without offering any offsetting benefits or out- Schultz, Partee, and Gramley. Voting against this action: weighing convenience and needs considerations. Governors Teeters and Rice. Absent and not voting: Gover- In light of the above, we would deny these applinor Wallich. cations. (Signed) THEODORE E. ALLISON, [SEAL] Secretary of the Board. Orders Under Section 4 of Bank Holding Dissenting Statement of Governors Teeters and Rice Company Act We would deny the application of Marshall & Ilsley Barclays Bank Limited, Corporation to acquire both the banking and non- London, England banking operations of Affiliated Bank Corporation, a multi-bank holding company, for the reasons set forth Barclays Bank International Limited, in previous Dissenting Statements to past actions by London, England the Board approving applications by statewide bank holding companies seeking to acquire a banking organ- Order Approving Acquisition of Aetna ization with a significant presence in one or more im- Business Credit, Inc. portant markets where the Applicant was not present.1 We believe that consummation of this proposal would Barclays Bank Limited (' Barclays") and its wholly have an adverse effect upon potential competition owned subsidiary, Barclays Bank International Limitwhich is not outweighted by convenience and needs ed ("BBIL"), both of London, England (collectively, considerations. "Applicants"), each of which is a bank holding com- In this case, the second largest banking organization pany within the meaning of the Bank Holding Compain Wisconsin is seeking to acquire the eleventh largest ny Act (12 U.S.C. § 1841, etseq.), have applied for the banking organization in the state, which is also the sec- Board's approval under section 4(c)(8) of the Act ond largest banking organization in one of the two (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of the banking markets of most concern to the Board in this Board's Regulation Y (12 C.F.R. § 225.4(b)(2)) to acmatter. This proposal is very similar to a number of quire 100 percent of the shares of Aetna Business other proposals from statewide bank holding com- Credit, Inc., East Hartford, Connecticut ("Aetna"), through its subsidiary, Barclays American Corpora- 1. First City Bancorporation of Texas, Inc., Houston, Texas, to tion ("BAC"), Charlotte, North Carolina. Aetna enacquire First Security National Corporation, Beaumont (65 FEDERAL gages in commercial finance and factoring activities, as RESERVE BULLETIN 862 (1979)); National Detroit Corporation, De- well as leasing.1 Such activities have been detertroit, Michigan, to acquire Farmers and Merchants National Bank in Benton Harbor, Benton Harbor, Michigan (65 FEDERAL RESERVE BULLETIN 928 (1979)); National City Corporation, Cleveland, Ohio, to 1. Aetna is currently lessor in two transactions involving five airacquire National City Bank of Marion, Marion, Ohio (65 FEDERAL craft. Such leases are full payout leases that meet the standards under RESERVE BULLETIN 1009 (1979)); and The Marine Corporation, Mil- section 225.4(a)(6)). Regulation Y 12 C.F.R. § 225.4(a)(6)). waukee, Wisconsin, to acquire First National Bank and Trust Compa- Aetna also has eleven subsidiaries whose sole function is to hold ny of Racine, Racine, Wisconsin (66 FEDERAL RESERVE BULLETIN property acquired in connection with debts previously contracted. (Order of October 3, 1980)). Applicant has committed to divest or liquidate these subsidiaries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 981 mined by the Board to be closely related to banking mation of that transaction and of the acquisition (12 C.F.R. § 225.4(a)(1) and (6)). proposed here, BAC would have total assets of $1.94 Notice of the applications, affording opportunity for billion and would rank as the tenth largest non-captive interested persons to submit comments and views on finance company in the United States. The Board the public interest factors, has been duly published (45 notes that while the proposed acquisition will signifi- Federal Register 57773 (1980)). The time for filing cantly increase BAC's national ranking, the consumcomments and views has expired, and the Board has mation is not regarded as adverse in view of the fact considered the applications and all comments received that Aetna's business is commercial lending and the in light of the factors set forth in section 4(c)(8) of the lending activity of BAC is primarily consumer-orient- Act. ed. Barclays is the largest banking organization in the It is the Board's view that the markets in which to United Kingdom and the tenth largest in the world, assess the competitive effects of a proposed transacwith consolidated assets of approximately $67.3 billion tion involving companies engaged in commercial fiand consolidated deposits of about $58.4 billion.2 Bar- nance and factoring activities are generally regional or clays engages in retail and wholesale banking, mer- national in scope. Based upon the facts of record, the chant banking, consumer finance, leasing, develop- Board has determined that the appropriate markets in ment finance and related financial services through which to examine the effects of the proposal are six more than 3,000 offices in the United Kingdom and nu- regional areas within the continental United States merous offices and affiliates worldwide. Its subsidiary, that appear to be distinct geographic territories in BBIL, is the holding company for Barclays' foreign which commercial finance services are marketed: the operations and holds two domestic subsidiary banks Northeast, Southeast, Midwest, North Central, South located in the United States, Barclays Bank of Califor- Central and West regions.5 nia ("Barcal"), and Barclays Bank of New York Aetna operates in all six regions through eight mar- ("BBNY").3 In addition, BBIL operates two branches keting offices and five service offices. BAC operates in in New York City, one branch each in Boston, Chi- all but the North Central region from the head office of cago, Pittsburgh, and the Virgin Islands; agencies in its wholly-owned subsidiary BarclaysAmerican/Com- Atlanta and San Francisco; and a representative office mercial, Inc. located in Charlotte, North Carolina. in Houston. Through BAC, Applicants also engage in Consummation of the proposed transaction would consumer lending, current asset financing, leasing, and eliminate some existing competition in five of the six the sale and underwriting of credit-related insurance. regions. The Board notes, however, that neither Aetna Aetna, a wholly owned subsidiary of Aetna Life and nor BAC should be regarded a dominant participant in Casualty Company, Hartford, Connecticut, is engaged these regions. Specifically, the combined market share primarily in commercial finance and factoring activi- of the commercial finance market of Aetna and BAC ties. Aetna has total assets of $784.1 million and total would range from 0.4 percent in the South Central rereceivables of $712 million, of which $697 million are gion to 1.2 percent in the West. Furthermore, while related to commercial finance activities and $15 million BAC's commercial finance operations are concenare related to factoring operations. Based on total as- trated in North Carolina and South Carolina, from sets, Aetna ranks as the 16th largest non-captive fi- which it derives 62 percent of its commercial finance nance company in the United States.4 BAC, which de- receivables, Aetna holds less than one percent of the rives a substantial portion of its business from commercial finance receivables in each of these states. consumer lending, has total assets of $908 million. Moreover, consummation of the proposal would not Based on total assets, BAC ranks as the 15th largest eliminate existing competition between Aetna and Apnon-captive finance company in the United States. On plicants' U.S. banking subsidiaries, as neither Barcal September 30, 1980, the Board approved the acquisi- nor BBNY solicit or participate in commercial finance tion by BAC of 138 consumer finance offices of sub- loans in the normal course of their business. In view of sidiaries of Beneficial Corporation. Upon consum- the small market shares involved, the large number of competitors active in the commercial finance indus- 2. Financial data are as of December 31, 1979, unless otherwise noted. 3. As a result of the 1966 Amendments to the Bank Holding Com- 5. For purposes of this proposal, the Northeast region is approxipany Act, Barclays became a multi-bank holding company by virtue of mated by the six New England states, New York, New Jersey, Pennits ownership of a subsidiary bank in California and three branches in sylvania, Delaware and Mayland; the Southeast by Alabama, Florida, New York. Barclays' multi-state operations were grandfathered as of Georgia, Mississippi, North Carolina, South Carolina, Tennessee, that time. In 1971, Barclays converted one of its New York branches Virginia and West Virginia; the Midwest by Illinois, Indiana, Keninto a state-chartered subsidiary bank, a transaction that essentially tucky, Michigan, Missouri, Ohio and Wisconsin; North Central by reorganized Barclays' operations in that state. See the Board's Order Iowa, Kansas, Minnesota, Nebraska, North Dakota and South Dakoand Statement of December 29, 1970, in Barclays Bank Limited/Bar- ta; the South Central by Arkansas, Colorado, Louisiana, New Mexiclays Bank of New York, 57 FEDERAL RESERVE BULLETIN 44 (1971). co, Oklahoma, Texas and Wyoming; and the West by Arizona, Cali- 4. American Banker June 20, 1980. fornia, Idaho, Montana, Nevada, Oregon, Utah and Washington. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

982 Federal Reserve Bulletin • December 1980 try, the relatively large size of such competitors, and grams at Aetna to provide loans to the small businessthe unconcentrated nature of the regional markets, the es which do not presently qualify for loans from Board is of the opinion that consummation of the pro- Aetna, resulting in at least $10 million in loans to these posal would have only slightly adverse effects on exist- companies during the next five years; to cause Aetna ing competition. to apply to become a Small Business Administration- With respect to potential competition, consum- approved lender and to make at least $5 million in mation of the proposal would foreclose some future loans under the SB A and similar government programs competition between BAC and Aetna in the North over the next five years; and to make at least $10 mil- Central region, the only area where Aetna and BAC do lion in loans to businesses located in low- and modernot both compete. Inasmuch as BAC appears to have ate-income communities over the next five years. the financial resources and managerial capability to en- Thus, upon affiliation with Applicants, Aetna will ter this market de novo, it is the Board's judgment that make at least $25 million in loans over the next five BAC may be viewed as a reasonably likely entrant into years to segments of the economy that are in need of the North Central region. Generally, elimination of po- financing. Finally, Applicants propose to expand the tential competition is regarded as most serious in the services of Aetna to include export financing and oil framework of a concentrated market, where the party and gas financing. being acquired is a dominant or one of the largest or- On the basis of these and other facts of record, the ganizations in the market, and the party making the Board concludes that the benefits to the public that acquisition is sizeable and perceived to be one of a lim- would result from Applicants' acquisition of Aetna are ited number of likely entrants into the market. With sufficient to outweigh the slightly adverse effects on respect to the North Central regional market, from the competition that would result from the proposed acrecord it appears that the market is relatively uncon- quisition. Moreover, there is no evidence in the record centrated with the commercial finance business dis- that consummation of the proposal would, with repersed among numerous competitors, and Aetna with spect to these applications, result in any undue cona 0.9 percent market share should not be regarded as centration of resources, decreased or unfair comdominant in the market. Accordingly, based on the petition, conflicts of interest, unsound banking foregoing and other facts of record, the Board con- practices, or other adverse effects. cludes that, although consummation of the proposal Based on the foregoing and other facts of record, the would eliminate some potential competition, the over- Board has determined that the balance of public interall effects would be only slightly adverse. est factors it must consider under section 4(c)(8) of the With respect to factoring, the relevant market is na- Act is favorable. Accordingly, the applications are tional in scope. BAC holds receivables of $109 million, hereby approved subject to the condition that Applior 2.2 percent of all factored receivables in the U.S., cants will divest or otherwise dispose of all impermisand ranks as the 15th largest factoring firm. Aetna sible subsidiaries within one year of consummation of holds $15 million in factored receivables, and has a na- the transaction. tionwide market share of 0.3 percent. The Board notes The approval of these applications is also subject to that while BAC derives 66 percent of its receivables the conditions set forth in section 225.4(c) of Regulafrom North Carolina, 60 percent of Aetna's receiv- tion Y and to the Board's authority to require such ables are derived from Georgia. Upon consummation modification or termination of the activities of a holdof the proposal, BAC would rank as the 11th largest ing company or any of its subsidiaries as the Board factoring firm in the United States with 2.5 percent of finds necessary to assure compliance with the provitotal factored receivables. In view of the number of sions and purposes of the Act and the Board's regulafactoring firms competing nationwide, the minimal in- tions and orders issued thereunder, or to prevent evacrease in BAC's market share, and the small degree of sion thereof. The transaction shall not be made later overlap in BAC's and Aetna's service areas, the Board than three months after the effective date of this Orconcludes that the consummation of the proposal der, unless such period is extended for good cause by would have only slightly adverse effects on existing the Board or by the Federal Reserve Bank of New York, acting pursuant to delegated authority. competition in factoring. Upon consummation of the proposal, Applicants in- By order of the Board of Governors, effective tend to take such action as to enable Aetna to expand November 10, 1980. and become more aggressive and to make the capital Voting for this action: Chairman Volcker and Governors injections to enable Aetna to add at least $500 million Partee, Teeters, Rice, and Gramley. Absent and not voting: in loans during the next three years. This increase in Governors Schultz and Wallich. lending activity should translate into a source of funds to small and medium-sized firms in need of capital. In (Signed) THEODORE E. ALLISON, addition, Applicants have committed to institute pro- [SEAL] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 983 The Chase Manhattan toring, leasing, mortgage banking, he sale of credit- Corporation, related insurance and international finance. New York, New York Applicant proposes to issue and sell travelers checks, which initially will be Visa Travelers Cheques, Order Approving Issuance and Sale of Travelers through its Travelers Cheque division. Bank recently Checks commenced issuing Visa Travelers Cheques and offering them for sale through its worldwide branch network. These activities will be transferred to Applicant The Chase Manhattan Corporation, New York, New and the travelers checks will be distributed on con- York ("Chase"), a bank holding company within the signment to financial and nonfinancial agents, includmeaning of the Bank Holding Company Act ("Act"), ing Bank. The selling agents will sell the travelers has applied for the Board's approval, under section checks to the public on behalf of Applicant. 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)), to engage The five major travelers check issuers currently conde novo, through its Travelers Cheque Division, in the trol in excess of approximately 90 percent of total issuance and sale of travelers checks. worldwide travelers check sales, with the largest is- The retail sale of travelers checks such as Applicant suer, American Express, accounting for 50 percent of proposes is included on the Board's list of permissible the market. The Board has previously determined that activities for bank holding companies in Regulation Y it would be in the public interest for bank holding com- (12 C.F.R. § 225.4(a)(13)). The issuance of travelers panies, having the capability, to engage in the issuance checks has not been included on the list of permissible of travelers checks in view of the limited number of activities. However, in connection with four earlier competitors currently servicing this industry. Appliapplications the Board determined by order that the cant's entry into this industry should serve to enhance activity of issuing travelers checks is closely related to competition in providing this service. Accordingly, it banking and would be in public interest. First Chicago is the Board's view that approval of this application Corporation, 65 FEDERAL RESERVE BULLETIN 937 would produce benefits to the public and would be in (1979); Citicorp, 65 FEDERAL RESERVE BULLETIN 666 the public interest. Furthermore, there is no evidence (1979); BankAmerica Corporation, 59 FEDERAL RE- in the record to indicate that Applicant's engaging in SERVE BULLETIN 544 (1973); and Republic of Texas this activity would lead to any undue concentration of Corporation, 62 FEDERAL RESERVE BULLETIN 630 resources, unfair competition, conflicts of interests, (1976). As noted in these earlier Board decisions, unsound banking practices, or other adverse effects. banks have in fact engaged in the issuance of travelers Based upon the foregoing and other considerations checks and generally have engaged in activities that reflected in the record, the Board has determined that are operationally and functionally similar to the pro- the balance of the public interest factors the Board is posed activity. Accordingly, the Board has determined required to consider under section 4(c)(8) is favorable. that issuing travelers checks as Applicant proposes is Accordingly, the application is hereby approved. This closely related to banking.1 determination is subject to the conditions set forth in Notice of the application, affording opportunity for section 225.4(c) of Regulation Y and to the Board's interested persons to submit comments on the public authority to require such modification or termination interest factors, has been duly published (45 Federal of the activities of a holding company or any of its sub- Register 60015). The time for filing comments has ex- sidiaries as the Board finds necessary to assure compired, and the Board has considered the application pliance with the provisions and purposes of the Act and all comments received in light of the public inter- and the Board's regulations and orders issued thereest factors set forth in section 4(c)(8) of the Act. under, or to prevent evasion thereof. Applicant, the second largest banking organization The transaction shall be made not later than three in New York, has one subsidiary bank, The Chase months after the effective date of this Order, unless Manhattan Bank, N.A., New York, New York such period is extended for good cause by the Board or ("Bank"), which accounts for 99 percent of the hold- by the Federal Reserve Bank of New York. ing company's consolidated assets of $73.0 billion.2 In By order of the Board of Governors, effective addition, Applicant also engages in a variety of non- November 18, 1980. bank activities, including commercial financing, fac- Voting for this action: Chairman Volcker and Governors Schultz, Wallich, Partee, Teeters, Rice, and Gramley. 1. See National Courier Association v. Board of Governors of the (Signed) THEODORE E. ALLISON, Federal Reserve System, 516 F. 2d 1229 (D.C. Cir. 1975). 2. All financial data are as of June 30, 1980. [SEAL] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

984 Federal Reserve Bulletin • December 1980 First Chicago Corporation, through (6), and of a proposal to add activity (7) to the Chicago, Illinois list of activities permissible for bank holding companies, was given in accordance with section 4 of the Order Approving Retention of Real Estate Research Act (45 Federal Register 44963 (1980)). In the pub- Corporation lished notice, the Board stated its belief that the real estate advisory services proposed to be provided to First Chicago Corporation, Chicago, Illinois, a bank state and local governments (activities (5) and (6) holding company within the meaning of the Bank above) may already be authorized by section Holding Company Act, has applied pursuant to section 225.4(a)(5)(v) of Regulation Y as "providing financial 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and section advice to state and local governments; " nevertheless, 225.4(b)(2) of the Board's Regulation Y (12 C.F.R. it requested comments as to whether these activities § 225.4(b)(2)) for the Board's approval to retain the should be permissible for bank holding companies. shares of its subsidiary, Real Estate Research Corpo- The time for filing comments has expired, and the ration ("RERC"), Chicago, Illinois. Board has considered the application and all com- Applicant acquired RERC in June 1970, and has ments received in light of the considerations specified been engaged since that time1 in the following activi- in section 4(c)(8) of the Act. None of the comments ties: (1) providing financial advice to state and local received objected to the application or to performance governments; (2) providing portfolio investment ad- of the proposed activities by bank holding companies. vice; (3) providing branch location, financial feasibil- Applicant, the second largest banking organization ity, and specialized market studies for nonaffiliated in Illinois, controls one bank and a number of domestic banks; (4) providing general economic information and nonbank subsidiaries with assets aggregating $28 biladvice, general economic statistical forecasting serv- lion.2 Through its nonbank subsidiaries, Applicant enices, and industry studies; (5) advising state and local gages in such activities as real estate financing and adgovernments about methods available to finance real visory services, leasing personal property, mortgage estate development projects; (6) evaluating projected banking, and commercial financing. RERC provides income to determine for state and local governments its advisory services throughout the entire United whether debt resulting from proposed development States. projects can be adequately serviced; (7) performing In order to authorize a bank holding company to enappraisals of all types of real estate, other than single- gage in a nonbank activity pursuant to section 4(c)(8) family residences; (8) providing energy conservation of the Act, the Board must first determine whether the advice with respect to the financial feasibility and mar- activity is closely related to banking or managing or ket acceptance of various energy alternatives for real controlling banks. A federal circuit court has set forth estate; (9) providing advice with respect to the finan- guidelines for determining whether an activity is closecial and market feasibility and scope of real estate de- ly related to banking,3 and the Board has previously velopment projects; (10) providing advice as to the fi- found these guidelines useful in determining whether a nancial consequences of pursuing different real estate proposed new nonbanking activity is closely related to strategies; (11) providing advice as to the optimum use banking. Under these guidelines, an activity may be of a parcel of real estate; (12) providing advice as to found to be closely related to banking if it is demonthe suitability of a particular location, or the optimum strated (1) that banks generally have in fact provided location, for a facility in terms of economic return, the proposed service; or (2) that banks generally protransportation, marketability or other factors; and (13) vide services that are operationally or functionally so writing reports for governmental agencies evaluating similar to the proposed services as to equip them parspecific development projects or recommending or ticularly well to provide the proposed service; or (3) evaluating development options for a community. that banks generally provide services that are so in- In its Order of June 26, 1980, the Board determined tegrally related to the proposed service as to require that there is no reasonable basis for believing that ac- their provision in a specialized form. tivities (8) through (13) are closely related to banking. Accordingly, the Board declined to publish notice of 2. Data are as of June 30, 1980. 3. National Courier Association v. Board of Governors of the Fed- Applicant's proposal with respect to these activities. eral Reserve System, 516 F.2d 1229 (D.C. Cir. 1975) (hereinafter re- Notice of the application with respect to activities (1) ferred to as "National Courier"). These guidelines are cited, for example, in NCNB Corporation v. Board of Governors of the Federal Reserve System, 599 F.2d 609, 613 (4th Cir. 1979); Association of 1. Section 4 of the Act provides, inter alia, that nonbanking activi- Bank Travel Bureaus, Inc. v. Board of Governors of the Federal Reties acquired between June 30, 1968, and December 31, 1970, by a serve System, 568 F.2d 549, 551 (7th Cir. 1978); Alabama Association company which became a bank holding company as a result of the of Insurance Agents v. Board of Governors of the Federal Reserve 1970 Amendments may not be retained beyond December 31, 1980, System, 533 F.2d 224, 241 (5th Cir. 1976), rehearing denied 558 F.2d without Board approval. 729 (1977), cert, denied 435 U.S. 904 (1978). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 985 In the case of performing appraisals of real estate constitute "providing financial advice" rather than other than single-family residences, the record reflects "management consulting" when the services are prothat banks have performed appraisals of real estate ei- vided solely to state and local governments rather than ther in connection with extensions of credit involving other nonbank organizations. real estate lending or as a discrete activity. In addition, In order to approve the subject application, the it appears that the activity of appraising real estate Board must also find that Applicant's performance of calls upon the necessary skills and resources often the activities through RERC "can reasonably be expossessed by banking organizations. On the basis of pected to produce benefits to the public, such as greatthe record, the Board has determined that the pro- er convenience, increased competition, or gains in effiposed appraisal activity is closely related to banking.4 ciency, that outweigh possible adverse effects, such as The Board has also determined that the proposed undue concentration of resources, decreased or unfair real estate advisory services described in (5) and (6) competition, conflicts of interests, or unsound banking above have already been found to be closely related to practices." banking in section 225.4(a)(5)(v) of Regulation Y (12 The Board notes that since acquiring RERC in 1970, C.F.R. § 225.4(a)(5)(v)), which provides that a bank Applicant has reorganized RERC to provide better and holding company may engage in the nonbanking activi- more efficient service to its customers. Retention of ty of'4 acting as investment adviser to the extent of. . . RERC by Applicant is expected to preserve RERC as (v) providing financial advice to state and local govern- a viable competitor in real estate advisory activities. ments, such as with respect to the issuance of their Retention is also expected to promote innovation in securities." Two examples of these activities cited by providing these advisory services. Moreover, RERC's Applicant are (i) analyzing the financial feasibility of continued affiliation with Applicant is likely to preconverting obsolete urban buildings to new uses, and serve RERC as a source of financial advice to state and (ii) examining the impact of a proposed freeway on local governments. land use, property values, tax receipts, and public ex- There is no evidence in the record that approval of penditures. this proposal would result in any adverse effects such The Board received comments noting that aspects of as undue concentration of resources, decreased or unthe services described in these examples may be with- fair competition, conflicts of interests, or unsound in the scope of the activity of "management consult- banking practices. Accordingly, the Board finds that ing," as defined in footnote two to section 225.4(a)(5) the balance of public interest factors it must consider of Regulation Y (12 C.F.R. § 225.4(a)(5)(n.2)).5 The under section 4(c)(8) of the Act is favorable and that Board has previously found that it is not permissible the application should be approved with respect to acfor bank holding companies to offer management con- tivities (1) through (7). sulting services to nonaffiliated companies,6 with the Based on the record and for reasons summarized exception of banks. The Board's action does not au- above, the application is approved, subject to provithorize bank holding companies to engage in such sions of the Board's Order of June 26, 1980, requiring management consulting activities; however, the Board RERC to cease engaging in activities (8) through (13) is of the opinion that, in view of the relationship that on or before December 31, 1980. This determination is has traditionally existed between banks and state and subject to the considerations set forth in section local governments, and the net public benefits that 225.4(c) of the Board's Regulation Y and to the would result from provision of advice to these govern- Board's authority to require reports by and make exments by bank holding companies, the Board would be aminations of bank holding companies and their submore flexible in determining that particular services sidiaries, and to require such modification or termination of the activities of a bank holding company or 4. In a separate action, the Board has amended its Regulation Y to any of its subsidiaries as the Board finds necessary to add the performance of appraisals of real estate to the list of activities assure compliance with the provisions and purposes of in which a bank holding company may engage. the Act and the Board's Orders and regulations issued 5. The definition of "management consulting" includes the provision of analysis or advice as to the following: marketing operations, thereunder, or to prevent evasion thereof. such as market testing and development; planning operations, such as By order of the Board of Governors, effective demand and cost projections, plant location, program planning and November 26, 1980. determination of long-term and short-term goals; internal operations, such as budgeting systems, budget control, and efficiency evaluation; and research operations, such as product development, basic re- Voting for this action: Chairman Volcker and Governors search, and product design and innovations. 12 C.F.R. § 225.4(a)(5)(n.2). Schultz, Wallich, Partee, Teeters, Rice, and Gramley. 6. First Commerce Corporation (W. R. Smolkin & Associates, Inc.), 58 FEDERAL RESERVE BULLETIN 674 (1972); Marine Midland (Signed) THEODORE E. ALLISON, Banks, Inc. (Carter H. Golembe Associates, Inc.), 58 FEDERAL RE- SERVE BULLETIN 676 (1972). [SEAL] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

986 Federal Reserve Bulletin • December 1980 Indiana National Corporation, owned operating subsidiary of Bank to own and man- Indianapolis, Indiana age real property used by Bank in its banking business. On November 28, 1969, Indun became a direct subsidi- Order Approving Retention oflndun Realty, Inc. ary of Applicant and commenced the activities of acquiring, financing, and developing real estate projects Indiana National Corporation, Indianapolis, Indiana, a either as a joint venture partner or as owner-lessor. In bank holding company within the meaning of the Bank connection with the joint ventures, Indun served as Holding Company Act, has applied for the Board's ap- the lending or financing partner, while other partners, proval pursuant to section 4(c)(8) of the Act (12 U.S.C. all being developers, would provide expertise in man- § 1843(c)(8)) and section 225.4(b)(2) of the Board's aging and developing each project. Because of general Regulation Y (12 C.F.R. § 225.4(b)(2)), to retain all the economic conditions, in late 1974, Indun stopped inshares of its wholly-owned subsidiary, Indun Realty, vesting in new real estate projects and, since that time, Inc. ("Indun"), Indianapolis, Indiana. Applicant pro- has concentrated its efforts on liquidating its real esposes to continue to engage, through Indun, in real tate investments. Since Applicant became a bank holdproperty leasing on a limited basis for the purpose of ing company as a result of the enactment of the 1970 liquidating one real estate development project subject Amendments to the Act, Applicant may retain its nonto two leases. Its activities substantially conform to bank shares held, or may engage in nonbank activities the specifications of the Board's leasing regulation, engaged in at that time, until December 31, 1980, unwhich defines real property leasing activities that have der section 4(a)(2) of the Act (12 U.S.C. § 1843(a)(2)). been determined by the Board to be closely related to Applicant has stated that by December 31, 1980, Inbanking (12 C.F.R. § 225.4(a)(6)(b)).1 dun's assets will consist only of the two leases, and it Notice of the application, affording opportunity for will not make any new real estate investments.2 Acinterested persons to submit comments and views, has cordingly, Applicant has applied to retain Indun purbeen duly published. The time for filing comments and suant to section 4(c)(8) of the Act for the limited purviews has expired, and the Board has considered all pose of continuing to hold the two leases until their comments received in light of the public interest fac- expiration dates in 1982 and 1989. tors set forth in section 4(c)(8) of the Act (12 U.S.C. Approval of the proposal will not have any adverse § 1843(c)(8)). effects on existing, potential or probable future com- Applicant, a bank holding company by virtue of its petition, nor is there anything in the record to suggest ownership and control of the Indiana National Bank that Applicant's acquisition of Indun in 1969 eliminat- ("Bank"), Indianapolis, Indiana, has applied to retain ed any competition, since Indun was formed de novo Indun, a subsidiary engaged in certain real estate ac- by Bank and its direct acquisition in 1969 by Applicant tivities. Bank (deposits of $1.4 billion, as of March 31, is viewed as a corporate reorganization lacking any 1979) is the second largest bank in Indiana with 5.85 competitive implications. Furthermore, in the Board's percent of total state deposits. In addition to owning judgment, the temporary retention of Indun by Appli- Bank, Applicant engages through subsidiaries in vari- cant to enable Indun to conduct an orderly disposition ous nonbank activities, including leasing real and per- of remaining real property investments will be in the sonal property, mortgage banking, and selling and un- public interest. Moreover, there is no evidence in the derwriting of credit-related insurance. record to indicate that approval of retention of Indun Indun (total assets of $27.8 million, as of December would result in or perpetuate any undue concentration 31, 1979) was organized in August 1964 as a wholly- or resources, unfair competition, conflicts of interests, unsound banking practices, or other adverse effects. 1. While the two leases that Indun proposes to retain substantially Based upon the foregoing and other considerations conform to the specifications outlined in the section 225.4(a)(6)(b) of reflected in the record, the Board has determined, that the Board's Regulation Y (12 C.F.R. 225.4(a)(6)(b)) for permissible full payout real property leasing activities, one of the leases does not the balance of public interest factors the Board is reinclude a definitive schedule of periodic lease payments. The Board quired to consider under section 4(c)(8) of the Act is believes that a fixed schedule of payments is necessary to ensure that the residual value of the property at the expiration of a lease would not favorable. Accordingly, the application is hereby apexceed 20 percent of the lessor's acquisition cost of the property proved. This determination is subject to the conditions (§ 225.4(a)(6)(b)(iv)(3)), and to determine that a particular lease thereset forth in section 225.4(c) of Regulation Y and to the by satisfies the "full payout" criteria of Regulation Y. The Board has found, however, that Indun's leasing activities may be regarded as Board's authority to require such modification or terpermissible in view of the particulars of this case, including the fact mination of the activities of a holding company or any that there is evidence that the 1974 Indun lease, which preceded the Board's promulgation of its real property leasing regulation, was negotiated with the expectation of all parties that it would be fully paid out 2. The Board notes that pursuant to section 701 of the Monetary prior to the expiration of the lease, and the fact that Applicant has Control Act of 1980, Applicant has received extensions until Decemprovided certain assurances that the 20 percent residual limit will not ber 31, 1982, to dispose of certain of its interests in real property subbe exceeded. ject to the section 4(a)(2) divestiture requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 987 of its subsidiaries as the Board finds necessary to as- two subsidiary banks and seven non-bank subsidiaries sure compliance with the provisions and purposes of active in mortgage banking, leasing, insurance, conthe Act and the Board's regulations and orders issued sumer lending, and investment advisory service activithereunder, or to prevent evasion thereof. ties. By order of the Board of Governors, effective Each Applicant proposes to offer essentially the November 12, 1980. same type of insurance package to holders of credit cards issued by their respective banking subsidiaries. Voting for this action: Chairman Volcker and Governors The package includes (1) credit life insurance, which Partee, Teeters, Rice, and Gramley. Absent and not voting: would pay the entire card balance due on the date of Governors Schultz and Wallich. death of an insured cardholder; (2) credit disability insurance, which would pay an insured cardholder's (Signed) THEODORE E. ALLISON, minimum monthly payment retroactively after the bor- [SEAL] Secretary of the Board. rower has been disabled for 30 days; and (3) loss of income insurance, which would pay the cardholder's minimum monthly payment when the cardholder is out U.S. Bancorp, of work because of termination, lay off, or labor dis- Portland, Oregon pute. This insurance would be underwritten by a company that is unaffiliated with Applicants. Neither pro- Old National Bancorporation, posal involves the direct or indirect underwriting of Spokane, Washington this insurance package by Applicants. USB would offer this proposed package ("three-part Order Approving Insurance Agency Activities package") in place of an insurance package that it currently offers ("two-part package"). The proposed U.S. Bancorp, Portland, Oregon ("USB") and Old three-part package differs from the two-part package National Bancorporation, Spokane, Washington only in that it includes involuntary unemployment in- ("ONB") (together, "Applicants"), both bank holding surance coverage and provides modified disability incompanies within the meaning of the Bank Holding surance coverage.1 Company Act ("Act"), have applied pursuant to sec- USB's proposal was filed and approved pursuant to tion 4(c)(8) of the Act (12 U.S.C. § 1843(c)(8)) and sec- the procedures set forth in section 225.4(b)(1) of the tion 225.4(b)(1) of the Board's Regulation Y (12 C.F.R. Board's Regulation Y (12 C.F.R. § 225.4(b)(1)). How- § 225.4(b)(1)), for permission to engage in the sale of ever, a member of the Board requested Board review insurance directly related to extensions of credit by of the approval pursuant to section 265.3 of the their respective banking subsidiaries. USB and ONB Board's Rules Regarding Delegation of Authority (12 would engage in this activity through their sub- C.F.R. § 265.3). sidiaries, Mt. Hood Credit Life Insurance Agency, ONB, which does not currently offer credit insur- Inc. and Union Securities Company, respectively. ance to its credit card customers, also filed its appli- Such activities generally have been determined by the cation under section 225.4(b)(1) of Regulation Y. As Board to be closely related to banking and therefore the insurance package to be offered is substantially permissible for bank holding companies. (12 C.F.R. similar to that proposed by USB, it was determined § 225.4(a)(9)(ii)). that the applications should be treated together. Notices of the applications, affording opportunity Section 4(c)(8) of the Act provides that the Board for interested persons to submit comments and views may approve an application by a bank holding compaon the public interest factors, have been duly pub- ny to engage in a non-banking activity only after the lished. The time for filing comments and views has ex- Board has determined that the proposed activity is so pired, and the Board has considered the applications closely related to banking as to be a proper incident and all comments received in light of the consid- thereto. The Board has determined by regulation that erations specified in section 4(c)(8) of the Act. the sale as agent of insurance directly related to an ex- USB is the largest banking organization in Oregon, tension of credit is a permissible nonbank activity, 12 with $4.4 billion in assets on December 31, 1979. It has C.F.R. § 225.4(a)(9)(ii). This determination was afone banking subsidiary and eight non-banking sub- firmed in Alabama Association of Insurance Agents v. sidiaries, which are engaged in mortgage banking, Board of Governors, 533 F.2d 224 (5th Cir. 1976), commercial and consumer financing, credit insurance, leasing, and marketing services. ONB, with assets of 1. USB's current disability insurance pays the entire card balance $1.3 billion as of December 31, 1979, is the fifth largest owing on the date of disability after the insured cardholder has been banking organization in the state of Washington. It has disabled for 90 days. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

988 Federal Reserve Bulletin • December 1980 modified on rehearing, 558 F.2d 729 (1977), cert, de- ently is offering a two-part insurance package to its nied, 435 U.S. 904 (1978). The portions of these pro- credit card holders, its underwriter plans to stop ofposals relating to the sale of credit life and disability fering it whether or not USB receives approval to offer insurance clearly are authorized by the Board's regula- the three part package. Thus, failure to approve USB's tions. See 12 C.F.R. § 225.128. However, credit insur- application would mean removal of a source of insurance for involuntary unemployment is a relatively new ance from the market in Oregon. Accordingly, approvcoverage that has not yet been approved by the Board al of USB's proposal would assure the continued availin any bank holding company proposal. This coverage, ability of credit life and disability, as well as the initial as described in these applications, would assure pay- provision of unemployment insurance to USB's cusment of the minimum monthly amount in the event of tomers. Finally, Applicants have committed to offer involuntary unemployment; no cash benefit would be the insurance packages at the lowest practicable cost, paid to the cardholder and the amount of insurance including billing costs. This commitment assures the coverage would be equal only to the cardholders' mini- public on a continuing basis the benefit of the lowest mum monthly payments while unemployed. Accord- practicable costs for the purchase of such products. ingly, based on these facts, involuntary unemployment In the Board's view, undue concentration of reinsurance programs such as those proposed in these sources, decreased or unfair competition, conflicts of applications appear directly related to an extension of interest, or unsound banking practices are not likely to credit within the meaning of section 225.4(a)(9)(ii) of be significant results of approval of these applications. Regulation Y, and, therefore, permissible for bank The Board is concerned, however, that the proposals holding companies. may require those who want only credit life or credit To approve an application under section 4(c)(8) of disability insurance also to take the unemployment inthe Act the Board must also determine that the per- surance or to forego entirely the purchase of insurance formance of the proposed activities by a nonbank sub- for their credit cards. While it may be preferable for sidiary of a bank holding company can reasonably be these coverages to be made available in independent expected to produce benefits to the public such as packages, packaging of benefits is not unusual in the greater convenience, increased competition, or gains insurance industry, and the Board has formally recogin efficiency, that outweigh possible adverse effects, nized this practice.3 The Board's regulations prohibit such as undue concentration of resources, decreased Applicants from requiring the purchase of credit reor unfair competition, conflicts of interest, or unsound lated insurance as a condition of receiving credit and banking practices. Applicants' customers may freely elect whether to In the Board's view, consummation of both of these purchase such insurance. Furthermore, Applicants proposals would result in benefits to the public. have submitted evidence demonstrating that a require- Unemployment insurance coverage is a new product ment that the insurance benefit be offered separately that has not yet been offered by bank holding com- would greatly increase the cost of each benefit to the panies, although it has been authorized to be sold in 40 consumer. Therefore, the Board regards the proposed states by a major department store chain. The provi- packaging of insurance benefits to be a pricing decision sion of this insurance program by bank holding com- made by the Applicants and to be judged by the market panies will provide a source of such insurance to those place, which will provide alternative sources of credit who would wish to insure against possible unemploy- insurance to those who find Applicants' packages unment. In this regard, the Board notes that ONB is not acceptable. presently offering any credit insurance to its credit Based upon the foregoing and other considerations card holders, and approval of its application will pro- reflected in the record, the Board has determined that vide the people of the state of Washington with a new the balance of the public interest factors that the Board source for such insurance. The Board generally re- is required to consider under section 4(c)(8) is favorgards de novo expansion of this nature as providing able. Accordingly, the application of ONB is hereby benefits to the public.2 Furthermore, while USB pres- approved and the previous action approving USB's application is affirmed. This determination is subject to the commitments described herein, as well as to the conditions set forth in section 225.4(c) of Regulation Y 2. Virginia National Bankshares, Inc., 66 FEDERAL RESERVE BUL- LETIN 668 (1980), BankAmerica Corporation (Decimus Corporation) and to the Board's authority to require such termi- 66 FEDERAL RESERVE BULLETIN 511 (1980): Citicorp (Person-to-Per- nation or modification of the activities of a holding son), 65 FEDERAL RESERVE BULLETIN 507 (1979); U.N. Bancshares, company or any of its subsidiaries as the Board finds Inc., 59 FEDERAL RESERVE BULLETIN 204 (1973). The United States Court of Appeals for the District of Columbia Circuit affirmed the Board's conclusions regarding the procompetitive nature of de novo entry in Connecticut Bankers Assn. v. Board of Governors, No. 79- 1554 (D.C. Cir. Feb. 7, 1980). 3. See 12 C.F.R. § 225.128(c)(iii). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 989 necessary to assure compliance with the provisions ket does not provide many alternatives, as is the case and purposes of the Act and the Board's regulations in Washington and Oregon. and orders insured thereunder, or to prevent evasion Accordingly, we believe that the adverse effects rethereof. sulting from the offering of a package of credit life, dis- The proposed activities shall commence not later ability insurance and involuntary unemployment inthan three months after the effective date of this Or- surance are not outweighed by the public benefits der, unless such period is extended for good cause by associated with these proposals. Therefore, we would the Board or by the Federal Reserve Bank of San deny both applications unless the Applicants were pre- Francisco, pursuant to delegated authority. pared to offer the unemployment insurance separate By order of the Board of Governors, effective from the other insurance products. November 25, 1980. Voting for this action: Chairman Volcker and Governors Certifications Pursuant to the Bank Holding Rice, and Gramley. Voting against this action: Governors Company Tax Act of 1976 Partee and Teeters. Absent and not voting: Governors Schultz and Wallich. American Financial Corporation, (Signed) JEFFERSON A. WALKER, Cincinnati, Ohio [SEAL] Assistant Secretary of the Board. Final Certification Pursuant to the Bank Holding Company Tax Act of 1976 Dissenting Statement of Governors Partee and Teeters American Financial Corporation, Cincinnati, Ohio ("AFC"), has requested a final certification pursuant We do not agree with the conclusion of the Board that to section 1101(e) of the Internal Revenue Code (the the balance of public interest factors associated with "Code"), as amended by section 2(a) of the Bank these proposals is favorable. In particular, we strongly Holding Company Tax Act of 1976 (the "Tax Act"), object to the Applicants' intentions to offer credit life that it has, before the expiration of the period prohibitand disability insurance only as part of a package with ed property is permitted under the Bank Holding Cominvoluntary unemployment insurance, without provid- pany Act, 12 U.S.C. § 1841 et. seq., ("BHC Act") to ing the public the option of purchasing the life and dis- be held by a bank holding company, ceased to be a ability benefits separately. We would rather that Ap- bank holding company. plicants unbundle these insurance coverages. In connection with this request, the following infor- The possibility of unemployment varies widely ac- mation is deemed relevant for purposes of issuing the cording to a worker's circumstances. The risk of requested certification:1 unemployment falls most heavily on those who are 1. Effective August 29, 1980, the Board issued a primarginally employed and those who, because of the or certification pursuant to section 1101(b) and seasonal nature of their work or poor economic condi- 1101(c)(3) of the Code with respect to the proposed tions, face periodic lay-offs; it weighs less heavily on divestiture by AFC of all the 5,107 shares of the those who occupy positions of seniority in stable in- Provident Bank ("Bank"), Cincinnati, Ohio, then dustries, to say nothing of those who are self- held by AFC, through the pro rata distribution to employed. The effect of combining in a package this AFC's common stockholders of the stock of Proviinsurance with credit life and disability insurance is to dent Holding Company ("PHC"), a corporation force those who may want the credit life insurance, created and availed of solely for the purpose of reand yet have no fear of unemployment, to take the ceiving AFC's shares of Bank. unemployment insurance anyway and, in effect, to 2. The Board's Order certified that: subsidize the insurance of those whose risk of A. AFC is a qualified bank holding corporation unemployment is high. within the meaning of section 1103(b) of the Code, Further, we do not share the majority's faith that the and satisfies the requirements of that subsection; market will provide alternatives to alleviate this prob- B. The 5,107 shares of Bank that AFC proposes lem. Insurance for credit card holders is generally sold to exchange for shares of PHC are all or part of only by the card issuer or an affiliate. Thus, a holder of the property by reason of which AFC controls one of the Applicants' credit cards who wishes to purchase only credit life and disability insurance will be 1. This information derives from AFC's communications with the required to shift to another credit card issuer as well. Board concerning its request for this certification, AFC's Registration Statement filed with the Board pursuant to the BHC Act, and other This is not always possible, especially where the mar- records of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

990 Federal Reserve Bulletin • December 1980 (within the meaning of section 2(a) of the BHC (12 C.F.R. § 265.2(b)(3)), effective November 21, Act) a bank or bank holding company; and 1980. C. The exchange of the shares of Bank for the shares of PHC and the distribution to the share- (Signed) THEODORE E. ALLISON, holders of AFC of the shares of PHC are neces- [SEAL] Secretary of the Board. sary or appropriate to effectuate the policies of the BHC Act. 3. On November 1, 1980, AFC exchanged its 5,107 Hastings Realty Company, shares of Bank for all of the shares of PHC, and im- Little Rock, Arkansas mediately thereafter distributed to its common stockholders, on a pro rata basis, all of the shares of Prior Certification Pursuant to the Bank Holding PHC. AFC does not currently hold any interest in Company Tax Act of 1976 PHC or Bank. 4. The prior certification issued on August 29, 1980, Hastings Realty Company, Little Rock, Arkansas was granted in reliance on AFC's commitment to ("Hastings"), has requested a prior certification purthe Board that by December 31, 1980, no person suant to section 1101(b)(1) of the Internal Revenue holding an office or position (including an advisory Code ("Code"), as amended by section 2(b) of the or honorary position) with AFC or any of its sub- Bank Holding Company Tax Act of 1976, that its prosidiaries as an officer, director, policy-making em- posed divestiture of all of the 4,160 shares (52%) of the ployee or management consultant, or who performs First State Bank of Sherwood, Sherwood, Arkansas (directly or through an agent, representative or nom- ("Bank") currently held by Hastings, through the pro inee) functions comparable to those normally asso- rata distribution of the stock of Bank to Hastings' ciated with such office or position, will hold any stockholders, is necessary or appropriate to effectusuch office or perform any such function with PHC, ate the policies of the Bank Holding Company Act Bank, or any of their subsidiaries. Accordingly, ef- (12 U.S.C. § 1841 et seq.) ("BHC Act"). fective November 6, 1980, all such interlocking rela- In connection with this request, the following infortionships between AFC and its subsidiaries on the mation is deemed relevant, for the purposes of issuing one hand, and PHC, Bank, and their respective sub- the requested certification.1 sidiaries on the other, were terminated. 1. Hastings is a corporation organized on January 2, 5. AFC does not directly or indirectly own, control, 1957 under the laws of Arkansas to engage in busior have power to vote 25 percent or more of any ness activities. class of voting securities of any bank or any compa- 2. On August 3, 1967, Hastings acquired ownership ny that controls a bank. and control of 3,160 shares of the outstanding com- 6. AFC has represented that it does not control in mon stock of Bank. Hastings acquired a further any manner the election of a majority of directors or 1,000 shares of Bank stock on December 4, 1967, for exercise a controlling influence over the manage- a total of 4,160 shares of the 8,000 shares outment or policies of PHC, Bank, or any other bank or standing of Bank, representing 52 percent of such company that controls a bank. shares. On the basis of the foregoing information it is hereby 3. Hastings became a bank holding company on certified that AFC has (before the expiration of the pe- December 31, 1970, as a result of the 1970 Amendriod prohibited property is permitted under the BHC ments to the BHC Act by virtue of its ownership and Act to be held by a bank holding company) ceased to control at that time of more than 25 percent of the be a bank holding company. outstanding voting shares of Bank, and it registered This certification is based upon the representations as such with the Board on March 14, 1973. Hastings made to the Board by AFC and upon the facts set forth would have been a bank holding company on July 7, above, including AFC's compliance with the com- 1970, if the BHC Act Amendments of 1970 had been mitment made in connection with the prior certifica- in effect on that date by virtue of its ownership and tion. In the event the Board should determine that control on that date of more than 25 percent of the facts material to this certification are otherwise than as outstanding voting shares of Bank. Hastings currepresented by AFC, or that AFC has failed to disclose to the Board other material facts or failed to comply with that commitment, the Board may revoke this certification. 1. This information derives from Hastings' communications with the Board concerning its request for this certification, Hastings' regis- By Order of the Board of Governors, acting through tration statement filed with the Board pursuant to the BHC Act, and its General Counsel, pursuant to delegated authority other records of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 991 rently owns and controls 4,160 shares out of the Industrial National Corporation, 8,000 shares outstanding of the bank, representing Providence, Rhode Island approximately 52 percent of such shares. 4. Company holds property acquired by it on or be- Prior Certification Pursuant to the Bank Holding fore June 30, 1968, the disposition of which but for Company Tax Act of 1976 the provisos of section 4(c)(ii) section 4(a)(2) of the BHC Act would be necessary or appropriate to ef- Industrial National Corporation, Providence, Rhode fectuate section 4 of the BHC Act if Hastings were Island ("INC"), has requested a prior certification to continue to be a bank holding company beyond pursuant to section 6158(a) of the Internal Revenue December 31, 1980, and which property, but for Code (the "Code"), as amended by section 3(a) of the such provisos would be "prohibited property" with- Bank Holding Company Tax Act of 1976 (the "Tax in the meaning of section 1103(a) of the Code. Sec- Act"), that its proposed sale of a 50 percent limited tions 1103(g) and (h) of the Code provides that any partnership interest in Waterman Avenue Associates, bank holding company may elect, for the purposes East Providence, Rhode Island ("Associates"), now of Part VIII of subchapter O of Chapter 1 of the held by Westminster Properties, Inc. ("Westmin- Code, to have the determination of whether proper- ster"), a wholly owned subsidiary of INC, is necesty is "prohibited property" or is property eligible to sary or appropriate to effectuate section 4 of the Bank be distributed without recognition of gain under sec- Holding Company Act (12 U.S.C. § 1843 et seq.) tion 1101(b)(1) of the Code made under the BHC Act ("BHC Act"). Westminster has agreed to sell the partas if the Act did not contain the provisos of sections nership interest and shares to the other partner in As- 4(a)(2) and 4(c)(ii). Hasting has represented that it sociates. will waive its exemptions under sections 4(a)(2) and In connection with this request, the following infor- 4(c)(ii) from the prohibitions of section 4 and make mation is deemed relevant for purposes of issuing the an election under sections 1103(g) and (h) of the requested certification:1 Code prior to the consummation of the proposed di- 1. Industrial Bancorp., Inc. ("Industrial") was a vestiture. corporation organized under the laws of the State of Delaware on September 18, 1968 to acquire and hold On the basis of the foregoing information, it is here- all the shares of Industrial National Bank of Rhode by certified that: Island ("Bank"). (A) Hastings is a qualified bank holding corporation 2. On September 18, 1968 Industrial acquired ownwithin the meaning of subsection (b) of section 1103 ership and control of 1,616,700 shares, representing of the Code and satisfies the requirements of that more than 99 percent of the outstanding voting section; shares of Bank. (B) the shares of Bank that Hastings proposes to 3. INC is a corporation organized under the laws of distribute are all of the property by reason of which the state of Rhode Island on April 29, 1970 as a Hastings controls (within the meaning of section 2(a) wholly-owned subsidiary of Industrial, and on the of the BHC Act), a bank; same date Industrial was merged into INC. INC (C) and distribution to the shareholders of Hastings thereby acquired ownership and control of the of the stock of Bank is necessary or appropriate to shares of Bank then held by Industrial. effectuate the policies of the BHC Act. 4. INC became a bank holding company on December 31, 1970, as a result of the 1970 Amendments to This certification is based upon the representations the BHC Act, by virtue of its ownership and control made to the Board by Hastings and the facts set out at that time of more than 25 percent of the outabove. In the event that the Board should hereafter standing voting shares of Bank, and it registered as determine that the facts material to this certification such with the Board on September 16, 1971. INC are otherwise than as represented by Hastings or that would have been a bank holding company on July 7, Hastings failed to disclose to the Board other material 1970, if the BHC Act Amendments of 1970 had been fact, the Board may revoke this certification. in effect on such date, by virtue of its ownership and By order of the Board of Governors, acting through control on that date of more than 25 percent of the its General Counsel pursuant to delegated authority voting shares of Bank. INC presently owns and con- (12 C.F.R. § 265.2(b)(3)), effective November 24, 1980. 1. This information dervies from INC's correspondence with the Board concerning its request for this certification, INC's Registration (Signed) JEFFERSON A. WALKER, Statement filed with the Board pursuant to the BHC Act and other [SEAL] Assistant Secretary of the Board. records of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

992 Federal Reserve Bulletin • December 1980 trols 100 percent (less directors' qualifying shares) By order of the Board of Governors, acting through of the outstanding voting shares of Bank. its General Counsel, pursuant to delegated authority 5. Westminster is a corporation organized on (12 C.F.R. § 265.2(b)(3)), effective November 21, November 12, 1968 under the laws of the state of 1980. Delaware as a wholly-owned subsidiary of Industrial. Westminster acquired its limited partnership inter- (Signed) JEFFERSON A. WALKER, est in Associates on April 15, 1969. Associates was [SEAL] Assistant Secretary of the Board. formed to own and operate a retail and office building located in East Providence, Rhode Island. INC presently owns and controls the 50 percent limited Noble Insurance Agency, Inc., partnership interest in Associates which it acquired Noble, Oklahoma through Westminster before July 7, 1970. The disposition of its interest in Associates by INC is nec- Prior Certification Pursuant to the Bank Holding essary or appropriate to effectuate section 4 of the Company Tax Act of 1976 BHC Act if INC were to continue to be a bank holding company beyond December 31, 1980.2 Noble Insurance Agency, Inc., Noble, Oklahoma 6. Westminster has contracted to sell the limited ("Noble"), has requested a prior certification purpartnership interest of Associates to the other part- suant to section 6158(a) of the Internal Revenue Code ner in Associates. ("Code"), as amended by section 3(a) of the Bank 7. After such sale, no person who is a director, offi- Holding Company Tax Act of 1976 ("Tax Act"), that cer or in a policy-making position (including an advi- its proposed sale of all of its general insurance agency sory or honorary position) with INC or any of its business to a newly formed corporation also called subsidiaries as a director, policy-making employee Noble Insurance Agency, Noble, Oklahoma ("Agenor consultant, or who performs (directly, or through cy") is necessary or appropriate to effectuate section 4 an agent, representative or nominee) functions com- of the Bank Holding Company Act (12 U.S.C. § 1841 parable to those normally associated with such of- et seq.) ("BHC Act"). fice or position, will hold any such office or position In connection with this request, the following inforor perform any such function with Associates. mation is deemed relevant for the purpose of issuing the requested certification.1 On the basis of the foregoing information it is hereby 1. Noble is a corporation organized under the laws certified that: of Oklahoma on December 9, 1969. (A) INC is a qualified bank holding corporation, 2. On December 11, 1969, Noble acquired ownwithin the meaning of section 6158(f)(1) and sub- ership and control of 378 of the 590 shares of the section (b) of section 1103 of the Code, and satisfies outstanding common stock of the First State Bank, the requirements of that subsection; Noble, Oklahoma ("Bank"), representing 75.6 per- (B) the 50 percent limited partnership interest in As- cent of such shares. Noble currently owns and consociates are "prohibited property" within the mean- trols 17,607 shares out of the 30,000 shares outing of sections 6158(f)(2) and 1103(c) of the Code; standing of the Bank, representing approximately and 58.07 percent of such shares. (C) the sale of the 50 percent limited partnership in- 3. Noble became a bank holding company on Deterest in Associates is necessary or appropriate to cember 31, 1970, as a result of the 1970 Amendeffectuate section 4 of the BHC Act. ments to the BHC Act by virtue of its ownership and control at that time of more than 25 percent of the This certification is based upon the representations outstanding voting shares of the Bank, and it regisand commitments made to the Board by INC and upon tered as such with the Board on December 8, 1972. the facts set forth above. In the event the Board should Noble would have been a bank holding company on hereafter determine that facts material to this certifica- July 7, 1970, if the BHC Act Amendments of 1970 tion are otherwise than as represented by INC, or that had been in effect on that date by virtue of its own- INC has failed to disclose to the Board other material ership and control on that date of more than 25 perfacts or to fulfill any commitments made to the Board cent of the outstanding voting shares of Bank. in connection herewith, it may revoke this certification. 1. This information derives from Noble's communications with the 2. The Board has determined that real estate development and Board concerning its request for this certification, Noble's registration property management are not permissible nonbanking activities for statement filed with the Board pursuant to the BHC Act, and other bank holding companies (12 C.F.R. § 225.126). records of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 993 4. Noble has directly engaged in the operation of a failed to disclose to the Board other material facts, the general insurance agency since its formation on De- Board may revoke this certification. cember 9, 1969. By order of the Board of Governors, acting through 5. Noble has not filed an application with the Board, its General Counsel pursuant to delegated authority and has not otherwise obtained the Board's approv- (12 C.F.R. § 265.2(b)(3)), effective November 6, 1980. al pursuant to section 4(c)(8) of the BHC Act, to continue to engage in the operation of an insurance (Signed) JEFFERSON A. WALKER, agency.2 [SEAL] Assistant Secretary of the Board. On the basis of the foregoing information it is hereby certified that: Southeastern Capital A. Noble is a qualified bank holding company with- Corporation, in the meaning of section 1103(b) of the Internal Atlanta, Georgia Revenue Code, and satisfies the requirements of that section; Prior Certification Pursuant to the Bank Holding B. The insurance agency business that Noble pro- Company Tax Act of 1976 poses to sell are "prohibited property" within the meaning of section 1103(c) of the Internal Revenue Southeastern Capital Corporation ("Southeastern"), Code; Atlanta, Georgia, has requested a prior certification C. The sale of the insurance agency business is nec- pursuant to section 6158(a) of the Internal Revenue essary or apropriate to effectuate section 4 of the Code ("Code"), as amended by section 3(a) of the BHC Act. Bank Holding Company Tax Act of 1976 ("Tax Act"), that its proposed sale of 19,344.5 shares of common This certification is based on the representations made stock ("Bank Shares") of First National Bank of to the Board by Noble and the facts set out above. In McDonough, McDonough, Georgia ("Bank"), to the event that the Board should hereafter determine Trust Company of Georgia, Atlanta, Georgia ("Buythat the facts material to this certification are other- er"), a registered bank holding company, for cash, is wise than as represented by Noble or that Noble has necessary or appropriate to effectuate the policies of the Bank Holding Company Act (12 U.S.C. §§ 1841 et seq.) ("BHC Act"). 2. Although Noble has not sought Board approval to retain its general In connection with this request, the following inforinsurance agency activities, these activities may be among those ac- mation is deemed relevant for purposes of issuing the tivities that the Board has determined to be closely related to banking requested certification.1 under section 4(c)(8) of the BHC Act, 12 U.S.C. § 1843(c)(8). Effective December 5, 1979, the Board amended section 225.4(a)(9) of its 1. Southeastern is a corporation organized (under Regulation Y pursuant to section 4(c)(8) of the BHC Act to include as the name of Phoenix, Inc.) on November 23, 1951, a permissible activity acting as insurance agent or broker with respect under the laws of the state of Georgia. to any insurance sold by a bank holding company in a community that has a population not exceeding 5,000, provided that the principal place 2. Between August 17, 1956, and July 7, 1970, of banking business of the bank holding company is located in a Southeastern acquired 14,508.5 shares representing community having a population not exceeding 5,000. 12 C.F.R. §225.4(a)(9). While Noble's insurance activities generally fall within 38.6 percent of Bank's outstanding voting shares. this category, under the Board's present procedures, the question Southeastern currently owns and controls 19,344.5 whether, or to what extent, Noble would be permitted to retain these shares, representing 38.6 percent of the voting activities would not be determinable unless and until Noble files an application for permission to retain the activities. In passing upon shares, of Bank.2 such an application, the Board would be required to apply the second test set forth in section 4(c)(8) and to determine whether the perform- 1. This information derives from Southeastern's correspondence with ance of the activities by Noble could "reasonably be expected to pro- the Board concerning its request for this certification, Southeastern's duce benefits to the public, such as greater convenience, increased Registration Statement filed with the Board pursuant to the BHC Act, competition, or gains in efficiency, that outweigh possible adverse ef- and other records of the Board. fects, such as undue concentration of resources, decreased or unfair 2. Under subsection (c) of section 1101 of the Code, property accompetition, conflicts of interest, or unsound banking practices." In quired after July 7, 1970, generally does not qualify for the tax benefits the absence of favorable action on such an application, Noble would of section 6158(a) by an otherwise qualified bank holding company. have no authority to continue to be a bank holding company beyond However, when such property was acquired by a qualified bank hold- December 31, 1980. The legislative history of the Tax Act does not ing company in a transaction in which gain was not recognized under indicate a Congressional intent that companies subject to such a di- section 305(a) of the Code, then § 6158(a) is applicable. Southeastern vestiture requirement exhaust the possibilities for retaining the activi- has stated that the 4836 shares of Bank acquired since July 7, 1970, ty before being eligible for tax relief, and in view of the paramount were acquired in stock splits and stock dividends in which gain was purpose of section 4 of the BHC Act that "banking and commerce not recognized under section 305(a) of the Code. If these shares were, should remain separate," S. Rep. No. 1084, 91st Cong., 2d Sess. 12 in fact, received in transactions in which gain was not recognized un- (1970), it would appear that the disposition of a potentially permissible der section 305(a) of the Code, then these shares are, accordingly, activity, without first seeking approval for retention, is at least "ap- eligible for the benefits provided in section 6158(a), by virtue of secpropriate" to effectuate section 4. tion 1101(c)(1)(A) of the Code. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

994 Federal Reserve Bulletin • December 1980 3. Southeastern became a bank holding company on close to the Board other material facts or to fulfill December 31, 1970, as a result of the 1970 Amend- any commitments made to the Board in connection ments to the BHC Act, by virtue of its ownership herewith, it may revoke the certification. and control at the time of more than 25 percent of By order of the Board of Governors, acting through the outstanding voting shares of Bank, and it regis- its General Counsel, pursuant to delegated authority, tered as such with the Board on June 4, 1971. South- effective November 25, 1980. eastern would have been a bank holding company on July 7, 1970, if the BHC Act Amendments of 1970 (Signed) THEODORE E. ALLISON, had been in effect on such date, by virtue of own- [SEAL] Secretary of the Board. ership and control on that date of more than 25 percent of the outstanding voting shares of Bank. 4. Southeastern holds property acquired by it on or Orders Under Section 2 of Bank Holding before July 7, 1970, the disposition of which would Company Act be necessary or appropriate under section 4 of the BHC Act if Southeastern were to remain a bank American Financial Corporation, holding company beyond December 31, 1980, and Cincinnati, Ohio which property is "prohibited property" within the meaning of section 1103(c) of the Code. Order Granting Determination Under the Bank 5. On July 11, 1972, Southeastern filed with the Holding Company Act Board an irrevocable declaration pursuant to section 225.4(d) of the Board's Regulation Y that it would American Financial Corporation ("AFC"), Cincincease to be a bank holding company prior to January 1, nati, Ohio, a bank holding company within the mean- 1981, by divesting itself of all of its interest in Bank. ing of section 2(a) of the Bank Holding Company Act In accordance with this portion of the regulation of 1956, as amended (12 U.S.C. § 1841(a)) (the and Southeastern's commitment, Southeastern has "Act"), by virtue of its ownership and control of The been permitted to expand its nonbanking activities Provident Bank ("Bank"), Cincinnati, Ohio, has rewithout seeking the Board's prior approval. quested a determination pursuant to the provisions of 6. Southeastern has committed that all persons affil- section 2(g)(3) of the Act (12 U.S.C. § 1841(g)(3)) that iated with Southeastern currently serving as direc- AFC is not in fact capable of controlling certain inditors or officers of Bank will resign their positions pri- viduals to whom it indirectly transferred its interest in or to the closing date of the sale, and thereafter that Bank ("Transferees"), Provident Holding Company Southeastern and its subsidiaries will have no direc- ("PHC") (a corporation created to receive AFC's intors or officers in connection with Bank or its affili- terest in Bank), or Bank, notwithstanding the fact that ates. Southeastern has further stated that Buyer is Transferees are officers and/or directors of AFC or its not, and will not be, indebted to Southeastern, and subsidiaries. that none of Buyer's directors or officers is affiliated Pursuant to the provisions of section 2(g)(3) of the in any way with Southeastern. Act, shares transferred after January 1, 1966, by any bank holding company to a transferee that is indebted On the basis of the foregoing information, it is here- to the transferor or has one or more officers, directors, by certified that: trustees, or beneficiaries in common with or subject to (A) Southeastern is a qualified bank holding corpo- the control by the transferor are deemed to be inration within the meaning of section 1103(b) of the directly owned or controlled by the transferor unless Code, and satisfies the requirements of that section; the Board, after opportunity for hearing, determines (B) Bank Shares covered by the instant request are that the transferor is not in fact capable of controlling the property by reason of which Southeastern con- the transferee.1 trols (within the meaning of section 2(a) of the BHC It is hereby determined that AFC is not, in fact, ca- Act) a bank; and pable of controlling Transferees, PHC, or Bank. This (C) the sale of such shares is necessary or appropri- determination is based on the evidence of record in ate to effectuate the policies of the BHC Act. This certification is based upon the representations 1. In its interpretation of this provision, the Board stated that the and commitments made to the Board by Southeastern presumption arises not only where the transferee or transferred company has an officer, director, or trustee "in common with" the transand upon the facts set forth above. In the event the feror, but where the transferee himself holds such a position with the Board should determine that facts material to this transferor. 12 C.F.R. § 225.139. Since AFC's officers and directors will receive in the aggregate more than 25 percent of the stock of PHC, certification are otherwise than as represented by and indirectly of Bank, AFC is presumed to continue to control the Southeastern, or that Southeastern has failed to dis- Transferees, PHC and Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 995 this matter, including the following facts. AFC di- in the meaning of the Bank Holding Company Act of vested its interest in Bank by forming a new one-bank 1956, as amended, has requested a determination unholding company, PHC, and transferring the shares of der section 2(g)(3) of the Act (12 U.S.C. § 1841(g)(3)) Bank to it. AFC then distributed the shares of PHC on that it is not in fact capable of controlling Guardian a pro rata basis to its shareholders, some of whom are Loan Company of Massapequa, Inc., Massapequa, officers and/or directors of AFC or its subsidiaries. New York ("Guardian-Massapequa"), the transferee AFC now holds no interest in Bank or PHC, and all of certain assets of First Jersey's indirect subsidiary, officer/director interlocks between AFC and PHC/ Guardian Loan Company, Inc., Roslyn Heights, New Bank have been terminated. Furthermore, AFC and York ("Guardian Loan"). its subsidiaries will not enter into any new joint loan Under section 2(g)(3), shares transferred after Januparticipation agreements with Bank, nor is there any ary 1, 1966, by any bank holding company to a transindebtedness or significant business relationship be- feree that is indebted to the transferor or has one or tween AFC and PHC/Bank (except for those entered more officers, directors, trustees, or beneficiaries in into and maintained on substantially the same terms common with or subject to control by the transferor, and conditions as those prevailing for comparable are deemed to be indirectly controlled or owned by the transactions with other persons). The fact that, after a transferor unless the Board, after opportunity for hearspin off, the officers and directors of a bank holding ing, determines that the transferor is not in fact cacompany own shares of a divested company is the pre- pable of controlling the transferee. The Board has indictable result of a pro rata distribution, and that distri- terpreted this provision to cover transfers of bution does not appear to have been a means of per- significant portions of assets as well as transfers of corpetuating AFC's control over Bank. Moreover, AFC's porate stock. No request for a hearing was made by board of directors has adopted a resolution that it can- First Jersey. First Jersey has submitted to the Board not control and will not attempt to control PHC or evidence to show that it is not in fact capable of con- Bank. Similarly, the boards of directors of PHC and trolling Guardian-Massapequa or its subsidiary, Bank have adopted resolutions that they will resist any Guardian Discount Company of Massapequa, Inc., attempt by AFC to acquire, retain, or attempt to exer- Massapequa, New York ("Guardian Discount"), and cise control over their management or policies. the Board has received no contradictory evidence. It is Accordingly, it is ordered that the request of AFC hereby determined that First Jersey is not in fact cafor a determination pursuant to section 2(g)(3) be and pable of controlling Guardian-Massapequa or its subhereby is granted. This determination is based upon sidiary. This determination is based on the following the representations made to the Board by AFC. In the facts. event the Board should hereafter determine that facts In February 1977, Guardian-Massapequa purchased material to this determination are otherwise than as the small loan assets of the Massapequa branch of represented, or that AFC has failed to disclose to the Guardian Loan and Guardian Discount purchased the Board other material facts, this determination may be sales finance assets of one of Guardian Loan's subrevoked, and any change in the facts or circumstances sidiaries. The purchase price of $1,247,980 included a relied upon by the Board in making this determination junior subordinated note in the amount of $140,000 at could result in the Board reconsidering the determina- six percent annual interest payable in monthly installtion made herein. ments over a 20-year period beginning March 1, 1977 By order of the Board of Governors, acting through ("Note"). The Note is not secured, is subordinated to its General Counsel, pursuant to delegated authority all other debt, and is guaranteed by Guardian-Massa- (12 C.F.R. § 265.2(b)(1)), effective November 21, pequa's principal, Carl J. Schultz. The sale was the 1980. result of arms-length negotiations, and the Note is the only debt outstanding between Guardian-Massapequa (Signed) THEODORE E. ALLISON, and First Jersey. First Jersey and Guardian-Massa- [SEAL] Secretary of the Board. pequa have no common officers and directors. First Jersey has submitted a resolution of its board of directors to the effect that First Jersey and its subsidiaries First Jersey National Corporation, have not and will not attempt to exercise any control Jersey City, New Jersey or influence over Guardian-Massapequa or its officers or directors. In addition, Guardian-Massapequa has Order Granting Determination Under the Bank submitted a resolution of its board of directors to the Holding Company Act effect that it will resist any efforts by First Jersey to control it. First Jersey National Corporation, Jersey City, New In view of the facts of record, it is determined that Jersey ("First Jersey"), a bank holding company with- First Jersey is not capable of controlling Guardian- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

996 Federal Reserve Bulletin • December 1980 Massapequa. Accordingly, it is ordered that the this determination may be revoked, and any change in request of First Jersey for a determination pursuant to the facts and circumstances relied upon by the Board section 2(g)(3) be granted. This determination is based in making this determination would result in the Board on the representations and commitments made to the reconsidering the determination made herein. Board by First Jersey and Guardian-Massapequa. In By order of the Board of Governors, acting through the event that the Board should hereafter determine its General Counsel pursuant to delegated authority that facts material to this determination are otherwise (12 C.F.R. § 265.2(b)(1)), effective November 26, than as represented, or that First Jersey or Guardian- 1980. Massapequa have failed to disclose to the Board other (Signed) JEFFERSON A. WALKER, material facts or failed to fulfill their commitments, [SEAL] Assistant Secretary of the Board. ORDERS APPROVED UNDER BANK HOLDING COMPANY ACT By the Board of Governors During November 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 System, Washington, D.C. 20551. Section 3 Board action Applicant Bank(s) (effective date) First Bank Holding Company, FirstBank Holding Company, November4, 1980 Lake wood, Colorado Lake wood, Colorado 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 Affiliated Capital Corporation First Bank in Atoka, Dallas November 3,1980 Atoka, Oklahoma Atoka, Oklahoma Altamaha Bancshares, Inc., Altamaha Bank and Trust Atlanta November 12,1980 Uvalda, Georgia Company, Uvalda, Georgia Ankeny Investment Co., Ankeny State Bank, Chicago November 13,1980 Webster City, Iowa Ankeny, Iowa Antioch Holding Company, State Bank of Antioch, Chicago November 20,1980 Antioch, Illinois Antioch, Illinois B.P.C. Corporation, The Bank of Putnam County, Atlanta November 21,1980 Cookeville, Tennessee Cookeville, Tennessee CCB Corp., Clayton County Bank, Atlanta November 6, 1980 Atlanta, Georgia Riverdale, Georgia CDB Corporation, Citizens DeKalb Bank, Atlanta November 6, 1980 Atlanta, Georgia Clarkston, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 997 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Cedar Point Bancshares, Inc., Cedar Point State Bank, Kansas City October 10, 1980 Cedar Point, Kansas Cedar Point, Kansas CENTRAL TRUST Central Trust and Savings Chicago November 3, 1980 INVESTMENT, INC., Bank, Cherokee, Iowa Cherokee, Iowa Citbank Corp., Citizens Bank, Dallas November 6, 1980 Richardson, Texas Richardson, Texas Crete Investment Corporation, City Bank & Trust Co., Kansas City October 30, 1980 Lincoln, Nebraska Crete, Nebraska Dominion Banqueshares Limited, Grandview Bank and Trust Kansas City October 9, 1980 Kansas City, Missouri Company, Grandview, Missouri Desoto Banking Corporation, The First State Bank of Atlanta November 21, 1980 Arcadia, Florida Arcadia, Arcadia, Florida East Texas Bancorporation, The East Texas National Bank Dallas November 21, 1980 Inc., of Palestine, Palestine, Texas Palestine, Texas Eureka Financial Corporation, The Citizens National Bank Kansas City October 24, 1980 Wichita, Kansas in Eureka, Eureka, Kansas Everman Bank Shares, Inc., Everman National Bank of Dallas November 10, 1980 Fort Worth, Texas Fort Worth Fort Worth, Texas F and M Bancshares, Inc., Farmers and Merchants State Kansas City October 10, 1980 Derby, Kansas Bank, Derby, Kansas FBH Corp., First Cornelia Corporation Atlanta November 6, 1980 Atlanta, Georgia Cornelia, Georgia FCB Corp., First Commercial Bank, Atlanta November 6, 1980 Atlanta, Georgia Buford, Georgia FMB Corp., Farmers & Merchants Bank Atlanta November 6, 1980 Atlanta, Georgia Summerville, Georgia First Belleville Bancshares, First National Bank in Kansas City October 31, 1980 Inc., Belleville, Belleville, Kansas Belleville, Kansas First Gwinnett Bancshares, First National Bank of Atlanta November 7,1980 Inc., Gwinnett County, Lawrenceville, Georgia Lawrence ville, Georgia First Norman Bancshares, Inc., The First National Bank and Kansas City October 17, 1980 Norman, Oklahoma Trust Company, Norman, Oklahoma F.N.B. Stinnett Bancshares, First National Bank of Stinnett, Dallas November 17,1980 Inc., Stinnett, Texas Stinnett, Texas First National State The Broadway National Bank New York November 3, 1980 Bancorporation, of Bayonne, Newark, New Jersey Bayonne, New Jersey First Security Bancshares, First Security Bank and Trust Kansas City October 17, 1980 Inc., Company, Oklahoma City, Oklahoma Oklahoma City, Oklahoma Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

998 Federal Reserve Bulletin • December 1980 Section 3—Continued Reserve Effective AApppplliiccaanntt BBaannkk((ss)) Bank date First State Financial Corporation, First State Bank, Atlanta November 10, 1980 Gulfport, Mississippi Gulfport, Mississippi Freeport Bancshares, Inc., Freeport State Bank, Minneapolis November 10, 1980 Freeport, Minnesota Freeport, Minnesota Garrett Bancshares LTD., Davis County Savings Bank, Chicago November 14, 1980 Bloomfield, Iowa Bloomfield, Iowa Graham-Michaelis Financial RKB, Inc., Kansas City October 24,1980 Corporation, Wichita, Kansas Wichita, Kansas Hardwick Holding Company Hardwick Bank & Trust Atlanta November 12, 1980 Dalton, Georgia Company, Dalton, Georgia Harris County Bankshares, Inc., Bank of Harris County, National Dallas November 20, 1980 Houston, Texas Association Houston, Texas Home State Bancorporation, Inc., Home State Bank, Kansas City October 31,1980 Hobart, Oklahoma Hobart, Oklahoma Hopkins Financial Corporation, Live Stock State Bank, Minneapolis October 31,1980 Mitchell, South Dakota Mitchell, South Dakota KENNEDY BANCSHARES, Farmers and Traders Savings Chicago November 10, 1980 INC., Bank, Bancroft, Iowa Bancroft, Iowa Liberty Bancshares, Inc., Commercial Bank of Liberty, Kansas City October 10, 1980 Liberty, Missouri N.A., Liberty, Missouri Matador Bancshares, Inc., The First State Bank of Matador, Dallas October 30, 1980 Matador, Texas Matador, Texas M.B. Group, Inc., The Marathon Bank, Atlanta November 13, 1980 Marathon, Florida Marathon, Florida Northstar Bancorporation, Inc., Minnetonka State Bank, Minneapolis November 20, 1980 Wayzata, Minnesota Excelsior, Minnesota Norwood Bancshares, Inc., Citizens State Bank of Norwood, Minneapolis November 14, 1980 Norwood, Minnesota Norwood, Minnesota Oketo Banc Shares, Inc., Oketo State Bank, Kansas City October 27, 1980 Oketo, Kansas Oketo, Kansas Owenton Bancorp., Inc., Peoples Bank & Trust Company St. Louis November 14, 1980 Owenton, Kentucky Owenton, Owenton, Kentucky P & C Bank Shares, Inc., Planters & Citizens Bank, Atlanta November 12, 1980 Camilla, Georgia Camilla, Georgia Peoples Bancshares of Caddo, Republic Bank, Dallas November 7, 1980 Inc., Blanchard, Louisiana Blanchard, Louisiana RKB, Inc., National Bank of Wichita, Kansas City October 24,1980 Wichita, Kansas Wichita, Kansas Roswell Bancshares, Roswell Bank, Atlanta November 6, 1980 Atlanta, Georgia Roswell, Georgia RUTHVEN INVESTMENT, Ruthven State Bank, Chicago November 3, 1980 LTD., Ruthven, Iowa Ruthven, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 999 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date S & H HOLDINGS, INC., Iroquois Farmers State Bank, Chicago November 13, 1980 Iroquois, Illinois Iroquois, Illinois Security State Holding Company Security State Bank, Kansas City October 31, 1980 of Fort Scott, Inc., Fort Scott, Kansas Fort Scott, Kansas Shawnee Mission Bancshares, The First National Bank of Kansas City October 17, 1980 Inc., Shawnee Mission Fairway, Kansas Fairway, Kansas Sierra Petroleum Co., Inc., RKB, Inc., Kansas City October 24, 1980 Wichita, Kansas Wichita, Kansas State Bancshares, Inc., State Bank of Schaller, Chicago October 30, 1980 Schaller, Iowa Schaller, Iowa TGB Corp., The Gordon Bank, Atlanta November 6, 1980 Atlanta, Georgia Gordon, Georgia Toronto Financial Corporation, The First National Bank of Kansas City October 24, 1980 Wichita, Kansas Toronto, Toronto, Kansas Waubun Bancshares, Inc., Farmers State Bank of Waubun, Minneapolis November 3, 1980 Waubun, Minnesota Incorporated, Waubun, Minnesota Western Development, Inc., Western Bank of Bozeman, Minneapolis November 6, 1980 Bozeman, Montana Bozeman, Montana Zavala Bankshares, Incorporated, Zavala County Bank, Dallas November 21, 1980 Crystal City, Texas Crystal City, Texas Sections 3 and 4 Nonbanking Reserve Effective AApppplliiccaanntt BBaannkk((ss)) company BBaannkk ddaattee (or activity) Mahaska Investment The First National Bank to continue to engage Chicago November 20, 1980 Company, Sumner, directly in leasing Oskaloosa, Iowa Sumner, Iowa real property Moline Financial Exchange State Bank, to engage in the sale Kansas October 27, 1980 Corporation, Moline, Kansas of credit-related City Wichita, Kansas insurance Pawnee Bancshares, Inc., The First National Bank to engage indirectly Kansas October 24, 1980 Larned, Kansas and Trust Company, in the sale of City Larned, Kansas general insurance Peoples Equity Shares, The Peoples Bank, to engage de novo in Atlanta November 20, 1980 Inc., Carrollton, Georgia the leasing of Carrollton, Georgia equipment to corporations and individuals Weleetka Bancorporation, The State National Bank to engage de novo in Kansas October 23, 1980 Inc., of Weleetka, the sale of credit- City Weleetka, Oklahoma Weleetka, Oklahoma related insurance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1000 Federal Reserve Bulletin • December 1980 Section 4 Nonbanking Reserve Effective Applicant company Bank date (or activity) Citizens Bancshares, Inc., to acquire Bonneville Thrift, San Francisco November 4, 1980 Ogden, Utah Bountiful, Utah, a company that will engage in the industrial loan business DuRoc Investment Company, to continue to engage in commercial Kansas City October 10, 1980 Table Rock, Nebraska finance activities at an office in Table Rock, Nebraska First of Herington, Inc., to continue to engage in general Kansas City October 3, 1980 Herington, Kansas insurance agency activities Hometown Finance Company, to continue to engage in industrial Kansas City October 23, 1980 Clinton, Oklahoma loan company activities LeRoy C. Darby, Inc., to continue to engage in lending Chicago November 10, 198C Monana, Iowa activities The Walsh Bancorporation, Inc. to acquire Walsh Insurance Kansas Ctiy October 23, 1980 Plymouth, Minnesota Agency, Inc., Plymouth, Minnesota ORDERS APPROVED UNDER BANK MERGER ACT Reserve Effective Applicant Bank(s) Bank date First Virginia Bank—South The Farmers and Merchants Bank, Richmond November 10, 1980 Central, Inc. of Amherst, Brookneal, Virginia Amherst, Virginia PENDING CASES INVOLVING THE BOARD OF GOVERNORS* *This list of pending cases does not include suits Independent Insurance Agents of America and Indeagainst the Federal Reserve Banks in which the Board pendent Insurance Agents of Virginia v. Board of of Governors is not named a party. Governors, filed September 1980, U.S.C.A. for the Fourth Circuit. Securities Industry Association v. Board of Gover- Nebraska Bankers Association, et al. v. Board of Govnors, et al., filed October 1980, U.S.D.C. for the ernors, et al., filed September 1980, U.S.D.C. for District of Columbia. the District of Nebraska. Securities Industry Association v. Board of Gover- Republic of Texas Corporation v. Board of Governors, nors, et al., filed October 1980, U.S.C.A. for the filed September 1980, U.S.C.A. for the Fifth Cir- District of Columbia. cuit. A. G. Becker, Inc. v. Board of Governors et al., filed Welch Bancshares v. Board of Governors, filed Sep- October 1980, U.S.D.C. for the District of Colum- tember 1980, U.S.C.A. for the Tenth Circuit. bia. Consumers Union of the United States, Inc., v. Board A. G. Becker, Inc. v. Board of Governors, et al., filed of Governors et al., filed August 1980, U.S.D.C. for October 1980, U.S.C.A. for the District of Colum- the District of Columbia. bia. A. G. Becker Inc., v. Board of Governors, et al., filed Independent Insurance Agents of America and Inde August 1980, U.S.D.C. for the District of Columbia. pendent Insurance Agents of Missouri v. Board of Otero Savings and Loan Association v. Board of Gov- Governors, filed September 1980, U.S.C.A. for the ernors, filed August 1980, U.S.D.C. for the District Eighth Circuit. of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 1001 Edwin F. Gordon v. Board of Governors, et al., filed Donald W. Riegel, Jr. v. Federal Open Market Com- August 1980, U.S.C.A. for the Fifth Circuit. mittee, filed July 1979, U.S.D.C. for the District of Edwin F. Gordon v. Board of Governors, et al., filed Columbia. July 1980, U.S.D.C. for the Northern District of Connecticut Bankers Association, et al., v. Board of Georgia. Governors, filed May 1979, U.S.C.A. for the Dis- Edwin F. Gordon v. Board of Governors, et al., filed trict of Columbia. July 1980, U.S.D.C. for the Northern District of Independent Insurance Agents of America, et al., v. Georgia. Board of Governors, filed May 1979, U.S.C.A. for Edwin F. Gordon v. Board of Governors, et al., filed the District of Columbia. August 1980, U.S.D.C. for the Northern District of Independent Insurance Agents of America, et al., v. Georgia. Board of Governors, filed April 1979, U.S.C.A. for Martin-Trigona v. Board of Governors, filed July 1980, the District of Columbia. U.S.C.A. for the District of Columbia. Independent Insurance Agents of America, et al., v. U.S. League of Savings Associations v. Depository Board of Governors, filed March 1979, U.S.C.A. for Institutions Deregulation Committee, et al., filed the District of Columbia. June 1980, U.S.D.C. for the District of Columbia. Credit and Commerce American Investment, et al., v. Berkovitz, et al. v. Government of Iran, et a., filed Board of Governors, filed March 1979, U.S.C.A. for June 1980, U.S.D.C. for the Northern District of the District of Columbia. California. Independent Bankers Association of Texas v. First Edwin F. Gordon v. Board of Governors, et al., filed National Bank in Dallas, et al., filed July 1978, June 1980, U.S. Supreme Court. U.S.D.C. for the Northern District of Texas. Mercantile Texas Corporation v. Board of Governors, Security Bancorp and Security National Bank v. filed May 1980, U.S.C.A. for the Fifth Circuit. Board of Governors, filed March 1978, U.S.C.A. for Corbin, Trustee v. United States, filed May 1980, the Ninth Circuit. United States Court of Claims. Vickars-Henry Corp. v. Board of Governors, filed De- Louis J. Roussel v. Board of Governors, filed April cember 1977, U.S.C.A. for the Ninth Circuit. 1980, U.S.D.C. for the District of Columbia. Investment Company Institute v. Board of Governors, Ulyssess S. Crockett v. United States et al., filed April filed September 1977, U.S.D.C. for the District of 1980, U.S.D.C. for the Eastern District of North Columbia. Carolina. Roberts Farms, Inc. v. Comptroller of the Currency, County National Bancorporation and TGB Co. v. et al., filed November 1975, U.S.D.C. for the South- Board of Governors, filed September 1979, ern District of California. U.S.C.A. for the Eighth Circuit. David Merrill, et al. v. Federal Open Market Com- Gregory v. Board of Governors, filed July 1979, mittee, filed May 1975, U.S.D.C. for the District of U.S.D.C. for the District of Columbia. Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

63 Financial and Business Statistics CONTENTS Domestic Financial Statistics WEEKLY REPORTING COMMERCIAL BANKS A3 Monetary aggregates and interest rates Assets and liabilities A4 Reserves of depository institutions, reserve A18 All reporting banks bank credit A19 Banks with assets of $ 1 billion or more A5 Reserves and borrowings of depository A20 Banks in New York City institutions A21 Balance sheet memoranda A6 Federal funds and repurchase agreements of A22 Commercial and industrial loans large member banks A23 Gross demand deposits of individuals, partnerships, and corporations POLICY INSTRUMENTS A7 Federal Reserve Bank interest rates FINANCIAL MARKETS A8 Depository institutions reserve requirements A9 Maximum interest rates payable on time and A23 Commercial paper and bankers dollar savings deposits at federally insured institutions acceptances outstanding A10 Federal Reserve open market transactions A24 Prime rate charged by banks on short-term business loans A24 Terms of lending at commercial banks FEDERAL RESERVE BANKS A25 Interest rates in money and capital markets A26 Stock market—Selected statistics All Condition and Federal Reserve note statements A12 Maturity distribution of loan and security All Savings institutions—Selected assets and holdings liabilities MONETARY AND CREDIT AGGREGATES FEDERAL FINANCE A12 Bank debits and deposit turnover A28 Federal fiscal and financing operations A13 Money stock measures and components A29 U.S. budget receipts and outlays A14 Aggregate reserves and deposits of member A30 Federal debt subject to statutory limitation banks A30 Gross public debt of U.S. Treasury—Types and A15 Loans and securities of all commercial banks ownership A31 U.S. government marketable securities— Ownership, by maturity COMMERCIAL BANKS A32 U.S. government securities dealers— Transactions, positions, and financing A16 Major nondeposit funds A33 Federal and federally sponsored credit A17 Assets and liabilities, last Wednesday-of-month agencies—Debt outstanding series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Federal Reserve Bulletin • December 1980 SECURITIES MARKETS AND A53 U.S. reserve assets CORPORATE FINANCE A54 Foreign branches of U.S. banks—Balance sheet data A34 New security issues—State and local A56 Selected U.S. liabilities to foreign official governments and corporations institutions A35 Open-end investment companies—Net sales and asset position A35 Corporate profits and their distribution REPORTED BY BANKS IN THE UNITED STATES A36 Nonfinancial corporations—Assets and liabilities A36 Total nonfarm business expenditures on new A56 Liabilities to and claims on foreigners plant and equipment A57 Liabilities to foreigners A37 Domestic finance companies—Assets and A59 Banks' own claims on foreigners liabilities; business credit A60 Banks' own and domestic customers' claims on foreigners A60 Banks' own claims on unaffiliated foreigners REAL ESTATE A61 Claims on foreign countries—Combined domestic offices and foreign branches A38 Mortgage markets A39 Mortgage debt outstanding SECURITIES HOLDINGS AND TRANSACTIONS CONSUMER INSTALLMENT CREDIT A62 Marketable U.S. Treasury bonds and notes— Foreign holdings and transactions A40 Total outstanding and net change A62 Foreign official assets held at Federal Reserve A41 Extensions and liquidations Banks A63 Foreign transactions in securities FLOW OF FUNDS REPORTED BY NONBANKING BUSINESS A42 Funds raised in U.S. credit markets ENTERPRISES IN THE UNITED STATES A43 Direct and indirect sources of funds to credit markets A64 Liabilities to unaffiliated foreigners A65 Claims on unaffiliated foreigners Domestic Nonfinancial Statistics INTEREST AND EXCHANGE RATES A44 Nonfinancial business activity—Selected measures A66 Discount rates of foreign central banks A44 Output, capacity, and capacity utilization A66 Foreign short-term interest rates A45 Labor force, employment, and unemployment A66 Foreign exchange rates A46 Industrial production—Indexes and gross value A48 Housing and construction A49 Consumer and producer prices A67 Guide to Tabular Presentation, A50 Gross national product and income Statistical Releases, and Special Tables A51 Personal income and saving Special Tables International Statistics A68 Commercial bank assets and liabilities, A52 U.S. international transactions—Summary June 30,1980 A53 U.S. foreign trade 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 1980 1980 Item Q4 Q1 Q2 Q3 June July Aug. Sept. Oct. Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 Member bank reserves 1 Total 12.3 4.2 0.9 6.9 -1.1 3.0 16.1 23.3 6.0 2 Required 11.2 5.3 1.2 6.1 -1.9 0.5 15.9 24.4 7.3 3 Nonborrowed 6.2 3.3 7.5 12.3 18.4 2.5 8.3 4.1 6.2 4 Monetary base2 9.5 7.6 5.2 9.8 6.6 8.5 15.2 10.4 10.2 Concepts of money and liquid assets3 5 M-1A 4.5 4.8 -3.9 11.0 11.4 7.8 19.3 12.6 9.4 6 M-1B 5.0 5.9 -2.4 13.5 14.6 11.1 21.6 15.8 11.5 7 M-2 7.1 7.2 5.5 15.5 18.1 18.2 14.5 8.6' 9.3 8 M-3 9.1 7.8 5.7 12.6' 13.4 13.5' 13.6 9.2' 11.0 9 L 8.5 8.3 7.7 9.6 6.8' 7.7' 13.3' 14.2' n.a. Time and savings deposits Commercial banks 10 Total 12.4 8.4 9.8 4.2 -1.6 2.3 7.3 12.4 11.1 11 Savings4 -16.5 -19.3 -22.6 26.4 32.9 38.6 26.5 7.6 9.4 12 Small-denomination time5 32.1 29.1 33.9 0.6 -3.1 -3.1 0.0 6.1 10.9 13 Large-denomination time6 19.7 11.3 10.1 -8.3 -24.8 -19.7 1.5 23.1 12.6 14 Thrift institutions7 6.7 2.7 5.0 10.0 10.8 9.1' 11.3' 10.7' 12.0 15 Total loans and securities at commercial banks8 8.6 9.5 -.5 7.0' -2.8 8.2' 17.9' 14.1' 13.3 1979 1980 1980 Q4 Q1 Q2 Q3 July Aug. Sept. Oct. Nov. Interest rates (levels, percent per annum) Short-term rates 16 Federal funds9 13.58 15.07 12.67 9.82 9.03 9.61 10.87 12.81 15.59 17 Federal Reserve discount10 11.92 12.51 12.45 10.35 10.87 10.00 10.17 11.00 11.47 18 Treasury bills (3-month market yield)11 11.84 13.35 9.62 9.15 8.06 9.13 10.27 11.62 13.73 19 Commercial paper (3-month)1112 13.35 14.54 11.18 9.65 8.41 9.57 10.97 12.52 15.18 Long-term rates Bonds 20 U.S. government13 10.18 11.78 10.58 10.95 10.32 11.07 11.47 11.75 12.44 21 State and local government14 7.20 8.23 7.95 8.58 8.13 8.67 8.94 9.11 9.56 22 Aaa utility (new issue)15 11.21 13.22 11.77' 12.20 11.60 12.32 12.74 13.18 13.85 23 Conventional mortgages16 12.38 14.32 12.70 n.a. 12.45 13.25 13.65 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-denomination time deposits are those issued in amounts of less than are adjusted for discontinuities in series that result from changes in Regulations $100,000. D and M. 6. Large-denomination time deposits are those issued in amounts of $100,000 or 2. Includes total reserves (member bank reserve balances in the current week more. glus vault cash held two weeks earlier); currency outside the U.S. Treasury, Federal 7. Savings and loan associations, mutual savings banks, and credit unions. Leserve Banks, and the vaults of commercial banks; and vault cash of nonmember 8. Changes calculated from figures shown in table 1.23. banks. 9. Averages of daily effective rates (average of the rates on a given date weighted 3. M-1A: Averages of daily figures for (1) demand deposits at all commercial by the volume of transactions at those rates). banks other than those due to domestic banks, the U.S. government, and foreign 10. Rate for the Federal Reserve Bank of New York. banks and official institutions less cash items in the process of collection and Federal 11. Quoted on a bank-discount basis. Reserve float; and (2) currency outside the Treasury, Federal Reserve banks, and 12. Beginning Nov. 1977, unweighted average of offering rates quoted by at least the vaults of commercial banks. five dealers. Previously, most representative rate quoted by these dealers. Before M-1B: M-l A plus negotiable order of withdrawal and automated transfer service Nov. 1979, data shown are for 90- to 119-day maturity. accounts at banks and thrift institutions, credit union share draft accounts, and 13. Market yields adjusted to a 20-year maturity by the U.S. Treasury. demand deposits at mutual savings banks. 14. Bond Buyer series for 20 issues of mixed quality. M-2: M-1B plus savings and small-denomination time deposits at all depository 15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by institutions, overnight repurchase agreements at commercial banks, overnight Eu- Moody's Investors Service and adjusted to an Aaa basis. Federal Reserve comrodollars held by U.S. residents other than banks at Caribbean branches of member pilations. banks, and money market mutual fund shares. 16. Average rates on new commitments for conventional first mortgages on new M-3: M-2 plus large-denomination time deposits at all depository institutions homes in primary markets, unweighted and rounded to nearest 5 basis points, from and term RPs at commercial banks and savings and loan associations. Dept. of Housing and Urban Development. 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 Nonfinancial Statistics • December 1980 1.11 RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT Millions of dollars Monthly averages of Weekly averages of daily figures for week-ending daily figures 1980 1980 Sept. Oct.P NOV.P Oct. 15 Oct. 22 Oct. 29 Nov. 5P NOV. 12P NOV. 19P NOV. 26P SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 139,993 141,695 142,984 141,199 143,233 141,755 141,887 143,252 142,641 2 U.S. government securities1 119,826 121,455 120,656 121,879 121,830 121,472 121,048 120,365 120,131 3 Bought outright 119,692 119,866 119,094 120,314 120,895 120,037 119,893 118,847 118,976 4 Held under repurchase agreements 134 1,589 1,562 1,565 935 1,435 1,155 1,518 1,155 5 Federal agency securities 8,858 9,206 9,087 9,101 9,262 9,070 9,077 9,234 8,914 6 Bought outright 8,809 8,769 8,761 8,776 8,761 8,761 8,761 8,761 8,761 7 Held under repurchase agreements 49 437 326 325 501 309 316 473 153 8 Acceptances 42 353 397 357 167 487 430 623 195 9 Loans 1,311 1,335 2,156 1,111 1,198 1,435 1,878 2,067 1,979 10 Float 4,768 3,722 4,288 3,348 5,123 3,314 3,038 4,338 5,107 11 Other Federal Reserve assets 5,188 5,624 6,400 5,403 5,653 5,976 6,416 6,625 6,315 12 Gold stock 11,170 11,165 11,163 11,165 11,165 11,164 11,163 11,163 11,163 13 Special drawing rights certificate account .. 3,268 3,268 3,325 3,268 3,268 3,268 3,268 3,268 3,354 14 Treasury currency outstanding 13,344 13,369 13,399 13,350 13,363 13,371 13,522 13,376 13,376 ABSORBING RESERVE FUNDS 15 Currency in circulation 129,744 130,582 132,743 131,001 130,6 130,459 131,134 132,525 133,159 16 Treasury cash holdings 468 464 462 468 460 460 465 476 Deposits, other than member bank reserves, with Federal Reserve Banks 17 Treasury 3,237 3,196 2,964 3,306 3,201 3,190 2,291 3,062 3,468 18 Foreign 309 284 314 299 287 231 310 309 308 19 Other 367 330 401 306 303 305 447 332 375 20 Other Federal Reserve liabilities and capital 4,486 4,665 4,772 4,626 4,742 4,654 4,785 4,708 4,674 21 Reserve accounts2 29,164 29,976 29,215 28,975 31,145 30,258 30,412 29,658 28,072 End-of-month figures Wednesday figures 1980 1980 Sept. Oct. Oct. 15 Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 SUPPLYING RESERVE FUNDS 22 Reserve bank credit outstanding 140,011 141,189 146,115 140,219 143,583 143,384 145,967 141,979 144,379 23 U.S. government securities1 120,711 121,482 120,812 119,460 121,472 121,436 121,314 118,050 121,690 24 Bought outright 119,418 119,852 118,936 119,460 121,472 120,515 119,988 117,014 119,145 25 Held under repurchase agreements 1,293 1,630 1,876 921 1,326 1,036 2,545 26 Federal agency securities 9,053 9,220 9,165 8,761 8,761 8,928 8,919 9,283 8,904 27 Bought outright 8,782 8,761 8,761 8,761 8,761 8,761 8,761 8,761 8,761 28 Held under repurchase agreements 271 459 404 167 158 522 143 29 Acceptances 499 566 523 426 441 429 374 30 Loans 982 1,567 2,284 567 3,966 2,740 3,371 2,095 2,468 31 Float 3,192 2,194 6,792 5,805 3,503 3,686 5,217 5,202 4,981 32 Other Federal Reserve assets 5,574 6,160 6,539 5,626 5,881 6,168 6,705 6,920 5,962 33 Gold stock 11,168 11,163 11,162 11,165 11,164 11,163 11,163 11,163 11,163 34 Special drawing rights certificate account .. 3,268 3,268 3,368 3,268 3,268 3,268 3,268 3,268 3,368 35 Treasury currency outstanding 13,663 13,716 13,376 13,362 13,368 13,376 13,376 13,376 13,376 ABSORBING RESERVE FUNDS 36 Currency in circulation 129,917 131,075 133,662 131,520 130,945 130, S 131,904 133,381 133,351 37 Treasury cash holdings 466 460 467 465 460 470 465 455 Deposits, other than member bank reserves. with Federal Reserve Banks 38 Treasury 4,102 1,864 2,435 3,228 2,877 3,064 2,763 3,477 39 Foreign 460 368 368 325 236 260 236 398 236 40 Other 363 338 478 320 321 316 421 311 363 41 Other Federal Reserve liabilities and capital 4,659 4,713 5,061 4,562 4,506 4,518 4,501 4,608 4,658 42 Reserve accounts2 28,146 30,518 31,528 27,921 31,682 31,770 33,177 27,859 29,746 1. Includes securities loaned—fully guaranteed by U.S. government securities 2. Includes reserves of member banks, and Edge Act corporations, pledged with Federal Reserve Banks—and excludes (if any) securities sold and NOTE: For amounts of currency and coin held as reserves, see table 1.12. scheduled to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Member Banks A5 1.12 RESERVES AND BORROWINGS Depository Institutions Millions of dollars Monthly averages of daily figures Reserve classification 1979 1980 Dec. Mar. Apr. May June July Aug. Sept. Oct.P NOV.P 1 Reserve balances with Reserve Banks1 32,473 32,400 33,663 32,726 32,125 31,384 2288,,992233 29,164 29,976 29,215 1155,,331111 3 Vault cash at institutions with required reserve balances2 11,344 10,729 10,895 10,998 11,141 1111,,228877 11,262 1111,,881111 1111,,667788 1111,,887766 4 Vault cash equal to required reserves at other institutions n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 439 5 Surplus vault cash at other institutions3 . n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2,996 6 Reserve balances + total vault cash4 43,972 43,352 44,769 43,933 43,479 42,859 40,373 41,164 41,815 4444,,667744 7 Reserve balances + total vault cash used to satisfy reserve requirements4 5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 41,678 8 Required reserves (estimated) 43,578 42,907 44,678 43,793 43,268 42,575 40,071 40,908 41,498 40,723 9 Excess reserve balances at Reserve Banks4 6 394 445 91 140 211 284 302 256 317 955 10 Total borrowings at Reserve Banks 1,473 2,828 2,443 1,028 380 395 659 1,311 1,335 2,156 11 Seasonal borrowings at Reserve Banks 82 152 156 64 12 7 10 26 67 99 Large banks in New York City 12 Reserves held 7,401 7,276 7,603 7,596 7,580 7,316 6,506 6,686 6,710 n.a. 13 Required 7,326 7,194 7,655 7,662 7,586 7,275 6,507 6,661 6,741 n.a. 14 Excess 75 82 -52 -66 -6 41 -1 25 -31 n.a. 15 Borrowings7 66 60 81 31 18 61 100 177 117 n.a. Large banks in Chicago 16 Reserves held 2,036 1,886 2,150 1,922 1,869 1,865 1,596 1,658 1,654 n.a. 17 Required 2,005 1,961 2,173 1,906 1,868 1,866 1,590 1,657 1,687 n.a. 18 Excess 31 -75 -23 16 1 -1 6 1 -33 n.a. 19 Borrowings7 90 137 60 28 5 18 27 109 29 n.a. Other large banks 20 Reserves held 17,426 17,029 17,644 17,379 17,244 16,863 15,853 16,107 16,188 n.a. 21 Required 17,390 17,135 17,991 17,545 17,205 16,819 15,781 16,073 16,347 n.a. 22 Excess 36 -106 -347 -166 39 44 72 34 -159 n.a. 23 Borrowings7 707 1,479 1,287 808 327 298 453 725 751 n.a. All other banks 24 Reserves held 16,734 16,261 16,314 16,271 16,310 16,373 16,083 16,378 16,466 n.a. 25 Required 16,536 16,233 16,367 16,234 16,168 16,203 15,883 16,207 16,392 n.a. 26 Excess 198 28 -53 37 142 170 200 171 74 n.a. 27 Borrowings7 610 1,152 1,015 161 30 18 79 300 438 n.a. Edge corporations 28 Reserves held 336 317 339 335 366 378 335 335 346 n.a. 29 Required 303 300 299 295 341 353 310 310 331 n.a. 30 Excess 33 17 40 40 25 25 25 25 15 n.a. U.S. agencies and branches8 31 Reserves held 39 9900 198 162 110 64 n.a. 32 Required 18 8844 193 151 100 59 n.a. 33 Excess 2211 6 5 1111 1100 5 nn..aa.. Weekly averages of daily figures for week ending: Sept. 24 Oct. 1 Oct. 8 Oct. 15 Oct. 22 Oct. 29 Nov. 5P Nov. 12P Nov. 19P Nov. 26P 34 Reserve balances with Reserve Banks1 29,817 30,047 28,852 28,975 31,145 3300,,225588 3300,,441122 2299,,665588 28,079 28,068 35 Total vault cash (estimated) 1177,,335500 1166,,993377 36 Vault cash at institutions with required reserve balances2 11,629 12,015 12,106 12,049 10,889 11,544 1122,,002288 1122,,227733 1111,,555533 1111,,338855 37 Vault cash equal to required reserves at other institutions n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 730 730 38 Surplus vault cash at other institutions3 . n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5,067 4,822 39 Reserve balances + total vault cash4 4411,,664433 42,234 41,132 41,188 4422,,119988 4411,,996666 4422,,559999 4422,,009900 4455,,558888 4455,,113344 40 Reserve balances + total vault cash used to satisfy reserve requirements4'5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 40,521 40,312 41 Required reserves (estimated) 41,564 41,884 40,780 40,953 42,120 41,930 42,032 41,686 40,017 39,995 42 Excess reserve balances at Reserve Banks4 6 79 350 352 235 78 36 567 404 504 317 43 Total borrowings at Reserve Banks 1,630 1,873 1,249 1,111 1,198 1,435 1,878 2,067 1,979 2,215 44 Seasonal borrowings at Reserve Banks 31 41 49 61 70 87 72 96 96 115 Large banks in New York City 45 Reserves held 6,701 7,036 6,728 6,501 6,948 6,664 7,045 6,648 n.a. n.a. 46 Required 6,778 6,974 6,608 6,634 6,905 6,719 6,982 6,896 n.a. n.a. 47 Excess -77 62 120 -133 43 -55 63 -248 n.a. n.a. 48 Borrowings7 154 247 46 -0 225 71 36 -0 n.a. n.a. Large banks in Chicago 49 Reserves held 1,650 1,677 1,638 1,685 1,707 1,720 1,659 1,621 n.a. n.a. 50 Required 1,651 1,674 1,628 1,684 1,713 1,718 1,715 1,747 n.a. n.a. 51 Excess -1 3 10 1 -6 2 -56 -126 n.a. n.a. 52 Borrowings7 385 27 18 6 89 -0 148 71 n.a. n.a. Other large banks 53 Reserves held 16,376 16,535 16,127 16,297 16,557 16,466 16,447 16,253 n.a. n.a. 54 Required 16,368 16,464 16,074 16,192 16,616 16,488 16,443 16,392 n.a. n.a. 55 Excess 8 71 53 105 -59 -22 4 -139 n.a. n.a. 56 Borrowings7 731 1,078 750 676 484 840 11,,117744 11,,443377 n.a. n.a. All other banks 57 Reserves held 16,598 16,674 16,304 16,340 16,614 16,791 16,708 16,413 n.a. n.a. 58 Required 16,470 16,481 16,149 16,114 16,552 16,664 16,569 16,354 n.a. n.a. 59 Excess 128 193 155 226 62 127 139 59 n.a. n.a. 60 Borrowings7 360 521 435 429 400 524 520 559 n.a. n.a. Edge corporations 61 Reserves held 318 319 335 365 372 325 367 352 n.a. n.a. 62 Required 297 291 321 329 334 341 323 297 n.a. n.a. 63 Excess 21 28 14 36 38 -16 44 55 n.a. n.a. For notes see bottofn of page A-6. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • December 1980 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks* Averages of daily figures, in millions of dollars 1980, week ending Wednesday BByy mmaattuurriittyy aanndd ssoouurrccee Oct. 1 Oct. 8 Oct. 15 Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 One day and continuing contract 1 Commercial banks in United States 50,744' 54,831' 53,527' 49,832' 47,442 49,000 52,916 51,609 48,094 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 15,189 15,272 15,835 15,973 15,230 14,139 15,280 15,986 15,593 3 Nonbank securities dealers 1,990' 2,203' 1,740' 2,007 2,200' 2,670 2,698 2,638 2,794 4 Allother 16,917 16,823 15,775 17,144 17,232' 16,584 15,873 17,504 17,074 All other maturities 5 Commercial banks in United States 3,563' 3,216' 5,122' 3,691' 3,791 4,606 4,744 3,833 4,067 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies 6,044 6,051 6,551 6,749 6,871' 7,437 7,568 7,080 6,913 7 Nonbank securities dealers 3,937 3,681 3,805' 4,020' 4,570 4,051 4,186 4,168 4,229 8 Allother 10,613' 10,256' 11,342' 10,536' 10,956' 10,987 10,790 9,882 10,615 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 14,378 13,873 15,138 12,504' 12,200' 13,305 12,565 14,948 11,460 10 Nonbank securities dealers 2,020 2,465 2,266' 2,484' 2,126 2,774 2,731 2,787 2,547 1. Banks with assets of $1 billion or more as of December 31, 1977. NOTES TO TABLE 1.12. 1. Includes all reserve balances of depository institutions. not add to total adjusted data byclass are not available. 2.Before Nov. 13, 1980, the figures shown reflect only the vault cash held by 5. Reserve balance with Federal Reserve Banks plus vault cash at institutions member banks. with required reserve balances plus vault cash equal to required reserves at other 3. Total vault cash at institutions without required reserve balances less vault institutions. cash equal to their required reserves. 6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy 4. Adjusted to include waivers of penalties for reserve deficiencies in accordance reserve requirements less required reserves. (This measure of excess reserves is with Board policy, effective Nov. 19, 1975, of permitting transitional relief on a comparable to the old excess reserve concept published historically.) graduated basis over a 24-month period when a nonmember bank merged into an 7. Based on closing figures. existing member bank, or when a nonmember bank joints the Federal Reserve 8. Data not reported after July 23, 1980. System. For weeks for which figures are preliminary, figures by class of bank dc Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit SShhoorrtt--tteerrmm EEmmeerrggeennccyy ccrreeddiitt aaddjjuussttmmeenntt ccrreeddiitt ttoo aallll ootthheerrss FFFeeedddeeerrraaalll RRReeessseeerrrvvveee Seasonal credit Special circumstances1 uunnddeerr sseeccttiioonn 113322 BBBaaannnkkk Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 11/30/80 date rate 11/30/80 date rate 11/30/80 date rate 11/30/80 date rate 11/17/80 11/17/80 11/17/80 11/17/80 Boston 12 11/17/80 11 12 11/17/80 11 13 11/17/80 12 15 11/17/80 14 New York 12 11/17/80 11 12 11/17/80 11 13 11/17/80 12 15 11/17/80 14 Philadelphia 12 11/17/80 11 12 11/17/80 11 13 11/17/80 12 15 11/17/80 14 Cleveland 12 11/17/80 11 12 11/17/80 11 13 11/17/80 12 15 11/17/80 14 Richmond 12 11/17/80 11 12 11/17/80 11 13 11/17/80 12 15 11/17/80 14 Atlanta 12 11/17/80 11 12 11/17/80 11 13 11/17/80 12 15 11/17/80 14 Chicago 12 11/17/80 11 12 11/17/80 11 13 11/17/80 12 15 11/17/80 14 St. Louis . 12 11/17/80 11 12 11/17/80 11 13 11/17/80 12 15 11/17/80 14 Minneapolis 12 11/17/80 11 12 11/17/80 11 13 11/17/80 12 15 11/17/80 14 Kansas City 12 11/17/80 11 12 11/17/80 11 13 11/17/80 12 15 11/17/80 14 Dallas 12 11/17/80 11 12 11/17/80 11 13 11/17/80 12 15 11/17/80 14 San Francisco 12 11/17/80 11 12 11/17/80 11 13 11/17/80 12 15 11/17/80 14 Range of rates in recent years3 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. Ba o n f k Effective da A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba of n k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1970 5Vz 5^2 11997744—— AApprr.. 25 7/2-8 8 11997788—— JJuullyy 3 1-1V4 1V4 1971— Jan. 8 5V*-5Vz 5^4 30 8 8 10 71/4-73/4 1V4 15 5V4 5V4 Dec. 9 73/4-8 73/4 Aug. 221 73/4 73/4 19 5-5!/4 5V4 16 73/4 73/4 Sept. 22 8 8 22 5-51/4 5 Oct. 16 8-8 Vz 8Vz 29 5 5 1975— Jan. 6 IVx 1V4 20 8 Vi 8Vz Feb. 13 43/4^5 5 10 IV4 1V4 Nov. 1 8Vz-9Vz 9 Vz 19 43/4 43/4 24 1V4 1V4 3 9 Vz 9Vz July 16 43/4-5 5 Feb. 5 63/4^7 V4 63/4 2 3 5 5 7 63/4 63/4 1979— July 20 10 10 Nov. 11 43/4-5 5 Mar. 10 6l/4-63/4 61/4 AAuugg.. 17 HMOfc 19 43/4 43/4 14 6V4 6^4 20 lOVz 10 Vz Dec. 13 4'/2-43/4 43/4 MMaayy 16 6-61/4 6 SSeepptt.. 19 lOVz-11 11 1 7 4V2-43/4 4 Vz 21 11 11 2 4 4 Vz 4 Vz 1976— Jan. 19 51/2-6 5h Oct. 8 11-12 12 23 5Vz 5Vi 10 12 12 1973— Jan. 15 5 5 Nov. 22 5i/4-5 Vi 5VA Feb. 26 5-5 Vz 5h 26 51/4 5!/4 1980— Feb. 15 12-13 13 Mar. 2 5Vz 5Vz 19 13 13 Apr. 23 5^-53/4 5Vz 11997777—— AAuugg.. 30 5'/4-53/4 5!/4 MMaayy 29 12-13 13 May 4 53/4 53/4 31 51/4^53/4 53/4 30 12 12 11 53/4-6 6 Sept. 2 53/4 53/4 June 13 11-12 11 1 8 6 6 Oct. 26 6 6 June 16 11 11 June 11 6-6 V^ 6 Vz July 28 10-11 10 15 6 Vi 6 Vz 1978— Jan. 9 6-6/2 6 Vi July 29 10 10 July 2 1 1 20 6 Vz 6 Vi Sept. 26 11 11 Aug. 14 1-1 Vi IV2 MMaayy 11 6V2-7 1 Nov. 17 12 12 23 IV2 IVi 12 7 1 In effect Nov. 30, 1980 12 12 1. Applicable to advances when exceptional circumstances or practices involve 3. Rates for short-term adjustment credit (as described above). For description only a particular depository institution as described in section 201.3(b) (2) of Reg- and earlier data see the following publications of the Board of Governors: Banking ulation A. and Monetary Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 2. Applicable to emergency advances to individuals, partnerships, and corpo- 1971-1975. 1972-1976, 1973-1977, and 1974-1978. rations as described in section 201.3(c) of Regulation A. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics • December 1980 1.15 DEPOSITORY INSTITUTIONS RESERVE REQUIREMENTS1 Percent of deposits Member bank requirements Depository institution requirements before implementation of the after implementation of the TTyyppee ooff ddeeppoossiitt,, aanndd ddeeppoossiitt iinntteerrvvaall Monetary Control Act TTyyppee ooff ddeeppoossiitt,, aanndd Monetary Control Act5 iinn mmiilllliioonnss ooff ddoollllaarrss ddeeppoossiitt iinntteerrvvaall Percent Effective date Percent Effective date Net demand2 Net transaction accounts6 0-2 7 12/30/76 $0-$25 million 3 11/13/80 2-10 9Vi 12/30/76 Over $25 million 1122 1111//1133//8800 10-100 ll3/4 12/30/76 100-400 123/4 12/30/76 Nonpersonal time deposits7 Over 400 161/4 12/30/76 By original maturity Less than 4 years 3 11/13/80 Time and savings2-3 44 yyeeaarrss oorr mmoorree 0 11/13/80 SSaavviinnggss 3 3/16/67 Eurocurrency liabilities Time4 AAllll ttyyppeess 3 11/13/80 0-5, by maturity 30-179 days 3 3/16/67 180 days to 4 years 2Vi 1/8/76 4 years or more 1 10/30/75 Over 5, by maturity 30-179 days 6 12/12/74 180 days to 4 years 2Vi 1/8/76 4 years or more 1 10/30/75 1. For changes in reserve requirements beginning 1963, see Board's Annual (b) Effective with the reserve maintenance period beginning Oct. 25, 1979, a Statistical Digest, 1971-1975 and for prior changes, see Board's Annual Report for marginal reserve requirement of 8 percent was added to managed liabilities in 1976, table 13. Under provisions of the Monetary Control Act, depository insti- excess of a base amount. This marginal requirement was increased to 10 percent tutions include commercial banks, mutual savings banks, savings and loan asso- beginning April 3, 1980, was decreased to 5 percent beginning June 12, 1980, and ciations, credit unions, agencies and branches of foreign banks, and Edge Act was reduced to zero beginning July 24, 1980. Managed liabilities are defined as corporations. large time deposits. Eurodollar borrowings, repurchase agreements against U.S. 2. (a) Requirement schedules are graduated, and each deposit interval applies government and federal agency securities, federal funds borrowings from nonto that part of the deposits of each bank. Demand deposits subject to reserve member institutions, and certain other obligations. In general, the base for the requirements are gross demand deposits minus cash items in process of collection marginal reserve requirement was originally the greater of (a) $100 million or (b) ana demand balances due from domestic banks. the average amount of the managed liabilities held by a member bank. Edge (b) The Federal Reserve Act as amended through 1978 specified different ranges corporation, or family of U.S. branches and agencies of a foreign bank for the two of requirements for reserve city banks and for other banks. Reserve cities were statement weeks ending Sept. 26, 1979. For the computation period beginning designated under a criterion adopted effective Nov. 9, 1972, by which a bank Mar. 20, 1980, the base was lowered by (a) 7 percent or (b) the decrease in an having net demand deposits of more than $400 million was considered to have the institution's U.S. office gross loans to foreigners and gross balances due from character of business of a reserve city bank. The presence of the head office of foreign offices of other institutions between the base period (Sept. 13-26, 1979) such a bank constituted designation of that place as a reserve city. Cities in which and the week ending Mar. 12, 1980, whichever was greater. For the computation there were Federal Reserve Banks or branches were also reserve cities. Any banks period beginning May 29, 1980, the base was increased by iVi percent above the having net demand deposits of $400 million or less were considered to have the base used to calculate the marginal reserve in the statement week of May 14-21, character of business of banks outside of reserve cities and were permitted to 1980. In addition, beginning Mar. 19, 1980, the base was reduced to the extent maintain reserves at ratios set for banks not in reserve cities. that foreign loans andbalances declined. (c) Effective Aug. 24, 1978, the Regulation M reserve requirements on net 5. For existing nonmember banks and thrift institutions, there is a phase-in balances due from domestic banks to their foreign branches and on deposits that period ending Sept. 3, 1987. For existing member banks the phase-in period is foreign branches lend to U.S residents were reduced to zero from 4 percent and about three years, depending on whether their new reserve requirements are 1 percent, respectively. The Regulation D reserve requirement on borrowings greater or less than the old requirements. For existing agencies and branches of from unrelated banks abroad was also reduced to zero from 4 percent. foreign banks, the phase-in ends Aug. 12, 1982. All new institutions will have a (d) Effective with the reserve computation period beginning Nov. 16, 1978, two-year phase-in beginning with the date that they open for business. domestic deposits of Edge corporations were subject to the same reserve require- 6. Transaction accounts include all deposits on which the account holder is ments as deposits of member banks. permitted to make withdrawals by negotiable or transferable instruments, payment 3. (a) Negotiable order of withdrawal (NOW) accounts and time deposits such orders of withdrawal, telephone and preauthorized transfers (in excess of three as Christmas and vacation club accounts were subject to the same requirements per month), for the purpose of making payments to third persons or others. as savings deposits. 7. In general, nonpersonal time deposits are time deposits, including savings (b) The average reserve requirement on savings and other time deposits before deposits, that are not transaction accounts and in which the beneficial interest is implementation of the Monetary Control Act had to be at least 3 percent, the held by a depositor which is not a natural person. Also included are certain transminimum specified by law. ferable time deposits held by natural persons, and certain obligations issued to 4. (a) Effective Nov. 2,1978, a supplementary reserve requirement of 2 percent depository institution offices located outside the United States. For details, see was imposed on large time deposits of $100,000 or more, obligations of affiliates, section 204.2 of Regulation D. and ineligible acceptances. This supplementary requirement was eliminated with the maintenance period beginning July 24, 1980. NOTE. Required reserves must be held in the form of deposits with Federal Reserve Banks or vault cash. After implementation of the Monetary Control Act, nonmembers may maintain reserves on a pass-through basis with certain approved institutions. 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 TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy ooofff dddeeepppooosssiiittt In effect Nov. 30, 1980 Previous maximum In effect Nov. 30, 1980 Previous maximum Percent Effective Percent Effective Percent Effective Percent Effective date date date date 2 1 T N S i a e m v g i e o n t g a ia s c b c l o e u n o t r s d e 4 r of withdrawal accounts 2 55555 SSSSS VVVVVAAAAA 77777 11111 ///// ///// 11111 11111 ///// ///// 77777 77777 99999 44444 (((((33333))))) 55555 7/1/73 55555 55555 VVVVViiiii 77 11 // // 11 11 // // 77 77 99 44 (((((33333))))) 55555VVVVV44444 0) Fixed ceiling rates by maturity 5 4 5 6 3 9 2 1 1 0 4 t t o o - d 8 a 2 2 9 y V y d s i e a t y a y o e r s s a 1 ? r s ' y e 7 ar }}}}} ««««« 55555 55555 33333 VVVVV /////44444 AAAAA 77777 88888 11111 ///// ///// ///// 11111 11111 11111 ///// ///// ///// 77777 88888 77777 99999 00000 33333 55555 5 5 5 5 5 5 5 5 5 5 55555 33333 VVVVV VVVVV /////44444 zzzzz iiiii 1 1 1 1 77 77 / / / / 2 2 2 2 // // 11 11 1 1 1 1 // // / / / / 77 77 7 7 7 7 33 33 0 0 0 0 }}}}} PPPPP 66666 VVVVV iiiii 111 000 ///111 ))) ///888000 ^^^^^ 66666 55555 33333/////44444 1 1 / / 2 2 (J 1 1 ) / / 7 7 0 0 7 2V2 to 4 years 7 66666 VVVVViiiii 77777/////11111/////7777733333 5555533333/////44444 11//2211//7700 6666633333/////44444 66666 1/21/70 1 8 9 0 4 6 8 t y t o o e a 8 6 r s y y e e o a a r r r s s m 8 8 o re 8 I I I I I I I I I I 77777 V V V V V V V V V V 33333/////44444 A I A I A I A I A I 1111122222 11111 66666 ///// 11111 22222 ///// ///// 11111 33333 11111 ///// ///// ///// 77777 77777 77777 44444 88888 33333 (((((99999))))) IIIIIVVVVV ,,,,, AAAAA 11/1/73 88888 I 1 I 1 I 1 I 1 I 133333 ///// VVVVV AAAAA iiiii 111222 111 666 /// 111 222 /// /// 111 333 111 /// /// /// 777 777 777 444 888 333 (((((99999))))) IIIIIVVVVViiiii 11/1/73 11 Issued to governmental units (all maturities') 10 88888 66666/////11111/////7777788888 7777733333/////44444 12/23/74 88888 666///111///777888 12/23/74 12 Individual retirement accounts and Keogh (H.R. 10) 7777733333/////44444 plans (3 years or more) 10'n 88888 66666/////11111/////7777788888 7777733333/////44444 7/6/77 666///111///777888 7/6/77 7777733333/////44444 13 S 6 p -m ec o ia n l t h v a m ri o a n b e l y e c m e a il r in k g e t r t a i t m es e b d y e p m os a i t t u s r i 1 t 2 y 88888 $$$ R 14 2Vi years or more 8 88888 1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loan pounding was prohibited on six-month money market time deposits at all offering associations. institutions. The maximum allowable rates in November for commercial banks and 2. For authorized states only, federally insured commercial banks, savings and thrift institutions were as follows: Nov. 6,13.519; Nov. 13,13.481; Nov. 20,14.167; loan associations, cooperative banks, and mutual savings banks in Massachusetts Nov. 27, 14.280. Effective for all six-month money market certificates issued beand New Hampshire were first permitted to offer negotiable order of withdrawal ginning June 5, 1980, the interest rate ceilings will be determined by the discount (NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was ex- rate (auction average) of most recently issued six-month U.S. Treasury bills as tended to similar institutions throughout New England on Feb. 27, 1976, and in follows: New York State on Nov. 10, 1978, and in New Jersey on Dec. 28, 1979. Bill rate Commercial bank ceiling Thrift ceiling 3. No separate account category. 8.75 and above bill rate + VA percent bill rate + VA percent 4. For exceptions with respect to certain foreign time deposits see the FEDERAL 8.50 to 8.75 bill rate + VA percent 9.00 RESERVE BULLETIN for October 1962 (p. 1279), August 1965 (p. 1084), and Feb- 7.50 to 8.50 bill rate + VA percent bill rate + Vi percent ruary 1968 (p. 167). 7.25 to 7.50 7.75 bill rate + Vz percent 5. Effective Nov. 10, 1980, the minimum notice period for public unit accounts Below 7.25 7.75 7.75 at savings and loan associations was decreased to 14 days and the minimum maturity The prohibition against compounding interest in these certificates continues. In period for time deposits at savings and loan associations in excess of $100,000 was addition, during the period May 29,1980, through Nov. 1,1980, commercial banks decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice may renew maturing six-month money market time deposits for the same depositor Eeriod for time deposits was decreased from 30 days to 14 days for mutual savings at the thrift institution ceiling interest rate. anks. 14. Effective Jan. 1, 1980, commercial banks, savings and loan associations, and 6. Effective Oct. 30, 1980, the minimum maturity or notice period for time mutual savings banks were authorized to offer variable-ceiling nonnegotiable time deposits was decreased from 30 days to 14 days for commercial banks. deposits with no required minimum denomination and with maturities of 2Vi years 7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was or more. The maximum rate for commercial banks is 3/4 percentage point below required for savings and loan associations, except in areas where mutual savings the yield on 2V^-year U.S. Treasury securities; the ceiling rate for thrift institutions banks permitted lower minimum denominations. This restriction was removed for is VA percentage point higher than that for commercial banks. Effective Mar. 1, deposits maturing in less than 1 year, effective Nov. 1, 1973. 1980, a temporary ceiling of ll3/4 percent was placed on these accounts at com- 8. No minimum denomination. Until July 1, 1979, minimum denomination was mercial banks; the temporary ceiling is 12 percent at savings and loan associations $1,000 except for deposits representing funds contributed to an Individual Retire- and mutual savings banks. Effective for all variable ceiling nonnegotiable time ment Account (IRA) or a Keogh (H.R. 10) plan established pursuant to the Internal deposits with maturities of 2Vi years or more issued beginning June 2, 1980, the Revenue Code. The $1,000 minimum requirement was removed for such accounts ceiling rates of interest will be determined as follows: in December 1975 and November 1976 respectively. Treasury yield Commercial bank ceiling Thrift ceiling 9. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for certificates 12.00 and above 11.75 12.00 maturing in 4 years or more with minimum denominations of $1,000; however, the 9.50 to 12.00 Treasury yield- V4 percent Treasury yield amount of such certificates that an institution could issue was limited to 5 percent Below 9.50 9.25 9.50 of its total time and savings deposits. Sales in excess of that amount, as well as Interest may be compounded on these time deposits. The ceiling rates of interest certificates of less than $1,000, were limited to the 6Vi percent ceiling on time at which these accounts may be offered vary biweekly. The maximum allowable deposits maturing in 2Vi years or more. rates in November for commercial banks were as follows: Nov. 13,11.75; Nov. 27, Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing in 4 11.75. The maximum allowable rates in November for thrift institutions were as years or more with minimum denomination of $1,000. There is no limitation on follows: Nov. 13, 12.00; Nov. 27, 12.00. the amount of these certificates that banks can issue. 15. Between July 1, 1979, and Dec. 31, 1979, commercial banks, savings and 10. Accounts subject to fixed rate ceilings. See footnote 8 for minimum denom- loan associations, and mutual savings banks were authorized to offer variable ceiling ination requirements. accounts with no required minimum denomination and with maturities of 4 years 11. Effective January 1, 1980, commercial banks are permitted to pay the same or more. The maximum rate for commercial banks was IVA percentage points below rate as thrifts on IRA and Keogh accounts and accounts of governmental units the yield on 4-year U.S. Treasury securities; the ceiling rate for thrift institutions when such deposits are placed in the new 2^-year or more variable ceiling certif- was VA percentage point higher than that for commercial banks. icates or in 26-week money market certificates regardless of the level of the Treasury NOTE. Before Mar. 31, 1980, the maximum rates that could be paid by federally bill rate. insured commercial banks, mutual savings banks, and savings and loan associations 12. Must have a maturity of exactly 26 weeks and a minimum denomination of were established by the Board of Governors of the Federal Reserve System, the $10,000, and must be nonnegotiable. Board of Directors of the Federal Deposit Insurance Corporation, and the Federal 13. Commercial banks, savings and loan associations, and mutual savings banks Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526, were authorized to offer money market time deposits effective June 1, 1978. The respectively. Title II of the Depository Institutions Deregulation and Monetary ceiling rate for commercial banks on money market time deposits entered into Control Act of 1980 (P.L. 96-221) transferred the authority of the agencies to before June 5,1980, is the discount rate (auction average) on most recently issued establish maximum rates of interest payable on deposits to the Depository Instisix-month U.S. Treasury bills. Until Mar. 15,1979, the ceiling rate for savings and tutions Deregulation Committee. The maximum rates on time deposits in denomloan associations and mutual savings banks was VA percentage point higher than inations of $100,000 or more with maturities of 30-89 days were suspended in June the rate for commercial banks. Beginning March 15, 1979, the ^-percentage-point 1970; such deposits maturing in 90 days or more were suspended in May 1973. For interest differential is removed when the six-month Treasury bill rate is 9 percent information regarding previous interest rate ceilings on all types of accounts, see or more. The full differential is in effect when the six-month bill rate is 83A percent earlier issues of the FEDERAL RESERVE BULLETIN, the Federal Home Loan Bank or less. Thrift institutions may pay a maximum 9 percent when the six-month bill Board Journal, and the Annual Report of the Federal Deposit Insurance Corporate is between 83/4 and 9 percent. Also effective March 15, 1979, interest com- ration. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics • December 1980 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1980 TTyyppee ooff ttrraannssaaccttiioonn 11997777 11997788 11997799 Apr. May June July Aug. Sept. Oct. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched salepurchase transactions) Treasury bills 1 Gross purchases 13,738 16,628 15,998 2,428 838 322 0 0 200 991 2 Gross sales 7,241 13,725 6,855 108 232 0 2,264 47 237 531 3 Exchange 0 0 0 0 0 274 0 0 0 0 4 Redemptions 2,136 2,033 2,900 0 0 0 950 0 0 700 Others within 1 year1 5 Gross purchases 3,017 1,184 3,203 109 155 121 0 137 0 0 6 Gross sales 0 0 0 0 0 0 0 0 0 0 7 Maturity shift 4,499 -5,170 17,339 179 1,670 412 311 2,423 589 596 9 8 E R x e c d h e a m n p g t e i ons 2 500 O -11 2 , , 3 6 0 0 8 0 -459 0 -5,276 0 -1,479 0 -788 0 -3,134 0 -1,459 0 -420 0 1 to 5 years 10 Gross purchases 2,833 4,188 2,148 373 405 465 0 541 0 0 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift - 12,693 -179 -1,302 -412 -311 -720 -589 -596 13 Exchange 7,508 459 3,000 1,479 788 1,750 1,459 420 5 to 10 years 14 Gross purchases 758 1,526 523 62 133 164 0 236 0 0 15 Gross sales 0 0 0 0 0 0 0 0 0 0 1 1 6 7 M Ex a c t h u a ri n ty g e shift 584 2 803 -4 2 , , 6 1 4 8 6 1 0 0 1 - ,3 2 0 5 0 0 0 0 0 -1 1 ,7 ,0 0 0 3 0 0 0 0 0 Over 10 years 18 Gross purchases 553 1,063 454 64 216 129 0 320 0 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 2 2 1 0 E M x a c t h u a ri n t g y e shift 1,565 2 545 1,619 0 0 0 -3 9 4 7 2 6 0 0 0 0 38 0 4 0 0 0 0 All maturities1 22 Gross purchases 20,898 24,591 22,325 3,036 1,747 1,200 0 1,234 200 991 23 Gross sales 7,241 13,725 6,855 108 232 0 2,264 47 237 531 24 Redemptions 4,636 2,033 5,500 0 0 0 950 0 0 700 Matched transactions 25 Gross sales 425,214 511,126 627,350 57,316 49,934 50,590 48,370 72,315 55,766 55,787 26 Gross purchases 423,841 510,854 624,192 57,479 50,965 52,076 46,023 71,645 56,207 56,462 Repurchase agreements 27 Gross purchases 178,683 151,618 107,051 3,029 7,717 12,810 10,719 2,783 3,203 20,145 28 Gross sales 180,535 152,436 106,968 3,952 4,811 15,258 10,110 3,016 2,743 19,808 29 Net change in U.S. government securities 5,798 7,743 6,896 2,168 5,452 238 -4,952 284 863 771 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 1,433 301 853 668 0 0 0 0 0 0 31 Gross sales 0 173 399 0 0 0 0 0 0 0 32 Redemptions 223 235 134 2 0 2 2 * 91 21 Repurchase agreements 33 Gross purchases 13,811 40,567 37,321 483 1,611 3,035 1,737 1,082 977 5,922 34 Gross sales 13,638 40,885 36,960 563 1,258 3,351 1,242 1,132 1,188 5,734 35 Net change in federal agency obligations 1,383 -426 681 586 353 -318 492 -50 -302 167 BANKERS ACCEPTANCES 36 Outright transactions, net -196 0 0 0 0 0 0 0 0 0 37 Repurchase agreements, net 159 -366 116 -171 366 7 -64 -33 222 67 38 Net change in bankers acceptances -37 -366 116 -171 366 7 -64 -33 222 67 39 Total net change in System Open Market Account 7,143 6,951 7,693 2,582 6,171 -73 -4,523 202 784 1,005 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): September 1977, 2,500; March 1979, 2,600. add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Banks All 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1980 1980 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 Sept. Oct. Nov. Consolidated condition statement ASSETS 1 Gold certificate account 11,163 11,163 11,163 11,163 11,162 11,168 11,163 11,162 2 Special drawing rights certificate account 3,268 3,268 3,268 3,368 3,368 3,268 3,268 3,368 3 Coin 417 420 419 419 411 427 429 416 Loans 4 To depository institutions 2,740 3,371 2,095 2,468 3,985 982 1,567 2,284 5 Other 0 0 0 0 0 0 0 0 Acceptances 6 Held under repurchase agreements 426 441 429 374 387 499 566 523 Federal agency obligations 7 Bought outright 8,761 8,761 8,761 8,761 8,761 8,782 8,761 8,761 8 Held under repurchase agreements 167 158 522 143 325 271 459 404 U.S. government securities Bought outright 9 Bills 45,004 44,477 41,503 43,634 43,650 43,907 44,341 43,425 10 Notes 58,703 58,703 58,703 58,618 58,618 58,703 58,703 58,618 11 Bonds 16,808 16,808 16,808 16,893 16,893 16,808 16,808 16,893 12 Total1 120,515 119,988 117,014 119,145 119,161 119,418 119,852 118,936 13 Held under repurchase agreements 921 1,326 1,036 2,545 1,481 1,293 1,630 1,876 14 Total U.S. government securities 121,436 121,314 118,050 121,690 120,642 120,711 121,482 120,812 15 Total loans and securities 133,530 134,045 129,857 133,436 134,100 131,245 132,835 132,784 16 Cash items in process of collection 9,780 12,244 12,348 12,055 10,257 12,481 8,691 12,831 17 Bank premises 453 453 453 455 457 450 453 457 Other assets 18 Denominated in foreign currencies2 2,754 3,158 2,993 3,148 3,509 2,245 2,750 3,631 19 Allother 2,961 3,094 3,474 2,359 2,532 2,879 2,957 2,451 20 Total assets 164,326 167,845 163,975 166,403 165,796 164,163 162,546 167,100 LIABILITIES 21 Federal Reserve notes 118,491 119,419 120,890 120,849 121,310 117,144 118,248 121,191 Deposits 22 Depository institutions 31,770 33,177 27,859 29,746 30,144 28,146 30,518 31,528 23 U.S. Treasury—General account 2,877 3,064 2,763 3,477 2,323 4,102 1,864 2,435 24 Foreign—Official accounts 260 236 398 236 279 460 368 368 25 Other 316 421 311 363 461 363 338 478 26 Total deposits 35,223 36,898 31,331 33,822 33,207 33,071 33,088 34,809 27 Deferred availability cash items 6,094 7,027 7,146 7,074 6,658 9,289 6,497 6,039 28 Other liabilities and accrued dividends3 1,903 1,895 1,992 2,054 1,978 1,877 2,042 2,317 29 Total liabilities 161,711 165,239 161,359 163,799 163,153 161,381 159,875 164,356 CAPITAL ACCOUNTS 30 Capital paid in 1,198 1,199 1,199 1,200 1,199 1,184 1,199 1,199 31 Surplus 1,145 1,145 1,145 1,145 1,145 1,145 1,145 1,145 32 Other capital accounts 272 262 272 259 299 453 327 400 33 Total liabilities and capital accounts 164,326 167,845 163,975 166,403 165,796 164,163 162,546 167,100 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 85,677 85,850 86,334 88,749 90,236 84,526 86,150 90,529 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to Bank) ... 137,922 138,125 138,080 138,366 138,716 137,292 137,871 138,699 36 Less-held by bank4 19,431 18,706 17,190 17,517 17,406 20,148 19,623 17,508 37 Federal Reserve notes, net 118,491 119,419 120,890 120,849 121,310 117,144 118,248 121,191 Collateral for Federal Reserve notes 38 Gold certificate account 11,163 11,163 11,163 11,163 11,162 11,168 11,163 11,162 39 Special drawing rights certificate account 3,268 3,268 3,268 3,368 3,368 3,268 3,268 3,368 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. government and agency securities 104,060 104,988 106,459 106,318 106,780 102,708 103,817 106,661 42 Total collateral 118,491 119,419 120,890 120,849 121,310 117,144 118,248 121,191 1. Includes securities loaned—fully guaranteed by U.S. government securities 3. Includes exchange-translation account reflecting the monthly revaluation at pledged with Federal Reserve Banks—and excludes (if any) securities sold and market exchange rates of foreign-exchange commitments. scheduled to be bought back under matched sale-purchase transactions. 4. Beginning September 1980, Federal Reserve notes held by the Reserve Bank 2. Includes U.S. government securities held under repurchase agreement against are exempt from the collateral requirement. receipt of foreign currencies and foreign currencies warehoused for the U.S. Treasury. Assets shown in this line are revalued monthly at market exchange rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • December 1980 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1980 1980 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 Sept. 30 Oct. 31 Nov. 30 1 Loans—Total 2,740 3,371 2,095 2,468 3,985 982 1,567 2,283 2 Within 15 days 2,730 3,334 2,036 2,450 3,971 973 1,550 2,272 3 16 days to 90 days 10 37 59 18 14 9 17 11 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 426 441 429 374 387 499 566 523 6 Within 15 days 426 441 429 374 387 499 566 523 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—Total 121,436 121,314 118,050 121,690 120,642 120,711 121,482 120,812 10 Within 15 days1 5,771 5,930 3,637 7,114 6,709 3,168 2,993 5,494 11 16 days to 90 days 20,973 21,415 19,748 20,755 20,336 22,479 24,059 23,086 12 91 days to 1 year 30,379 29,832 30,527 30,523 30,299 30,751 30,293 28,934 13 Over 1 year to 5 years 36,336 36,160 36,161 34,942 34,942 36,336 36,160 34,942 14 Over 5 years to 10 years 13,135 13,135 13,135 13,354 13,354 13,135 13,135 13,354 15 Over 10 years 14,842 14,842 14,842 15,002 15,002 14,842 14,842 15.002 16 Federal agency obligations—Total 8,928 8,919 9,283 8,904 9,086 9,053 9,220 9,165 17 Within 15 days1 230 158 702 413 477 522 63 556 18 16 days to 90 days 544 617 437 347 284 508 1,003 467 19 91 days to 1 year 1,558 1,548 1,548 1,548 1,668 1,312 1,558 1,495 20 Over 1 year to 5 years 4,771 4,771 4,771 4,771 4,880 4,818 4,771 4,870 21 Over 5 years to 10 years 1,140 1,140 1,140 1,140 1,092 1,149 1,140 1,092 22 Over 10 years 685 685 685 685 685 744 685 685 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. 1980 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 1977 1978 1979 June July Aug. Sept. Oct. Debits to demand deposits1 (seasonally adjusted) 1 All commercial banks 34,322.8 40,297.8 49,750.7 61,574.7 63,088.5 65,385.9 65,111.5 65,645.5 2 Major New York City banks 13,860.6 15,008.7 18,512.2 24,788.9 25,538.8 26,705.7 26,103.5 26,034.2 3 Other banks 20,462.2 25,289.1 31,238.5 36,785.7 37,549.8 38,680.2 39,008.0 39,611.4 Debits to savings deposits2 (not seasonally adjusted) 4 ATS/NOW3 5.5 17.1 83.3 158.7 161.6 145.2 175.0 193.0 5 Business4 .. 21.7 56.7 77.4 80.2 85.1 84.9 91.4 98.6 6 Others5 152.3 359.7 557.6 587.5 633.7 631.1 719.2 775.5 7 All accounts 179.5 432.9 718.2 826.4 880.4 861.2 985.6 1,067.1 Demand deposit turnover1 (seasonally adjusted) 8 All commercial banks 129.2 139.4 163.4 201.5 203.7 205.5 202.1 201.4 9 Major New York City banks 503.0 541.9 646.2 817.1 844.5 859.6 818.5 779.4 10 Other banks 85.9 96.8 113.2 133.7 134.4 134.7 134.4 135.0 Savings deposit turnover2 (not seasonally adjusted) 11 ATS/NOW3 6.5 7.0 7.8 10.2 9.7 8.2 9.4 10.0 12 Business4 4.1 5.1 7.2 8.6 8.5 7.9 8.5 8.9 13 Others5 1.5 1.7 2.9 3.4 3.6 3.5 4.0 4.3 14 All accounts 1.7 1.9 3.3 4.2 4.3 4.1 4.7 5.0 1. Represents accounts of individuals, partnerships, and corporations, and of NOTE: Historical data for the period 1970 through June 1977 have been estimated; states and political subdivisions. these estimates are based in part on the debits series for 233 SMS As, which were 2. Excludes special club accounts, such as Christmas and vacation clubs. available through June 1977. Back data are available from Publications Services, 3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts Division of Administrative Services, Board of Governors of the Federal Reserve authorized for automatic transfer to demand deposits (ATS). ATS data availability System, Washington, D.C. 20551. Debits and turnover data for savings deposits starts with December 1978. are not available before July 1977. 4. Represents corporations and other profit-seeking organizations (excluding commercial banks but including savings and loan associations, mutual savings banks, credit unions, the Export-Import Bank, and federally sponsored lending agencies). 5. Savings accounts other than NOW; business; and, from December 1978, ATS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Aggregates A13 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1980 11997766 11997777 11997788 11997799 Item DDeecc.. DDeecc.. DDeecc.. DDeecc.. May June July Aug. Sept. Oct. Seasonally adjusted MEASURES1 1 M-1A 305.0 328.4 351.6 369.7 367.8 371.3 373.7 379.7 383.7' 386.7 2 M-1B 307.7 332.5 359.9 386.4 386.2 390.9 394.5 401.6 406.9' 410.8 3 M-2 1,166.7 1,294.1 1,401.5 1,525.5 1,562.1 1,585.7 1,609.7 1,629.2 1,640.9' 1,653.6 4 M-3 1,299.7 1,460.3 1,623.6 1,775.5 1,824.2 1,844.5 1,865.2' 1,886.3 1,900.8' 1,918.2 5 L2 1,523.5 1,715.5 1,927.7 2,141.1 2,216.6 2,229.1' 2,243.4' 2,268.2' 2,295.1' n.a. COMPONENTS 6 Currency 80.7 88.7 97.6 106.3 110.1 111.0 112.0 113.4 113.9 115.1 7 Demand deposits 224.4 239.7 253.9 263.4 257.7 260.3 261.6 266.3 269.8 271.6 8 Savings deposits 447.7 486.5 476.1 416.7 372.7 381.4 393.8' 403.9' 407.9' 410.3 9 Small-denomination time deposits3 396.6 454.9 533.8 656.5 718.0 719.6 717.2 717.1' 720.9 727.9 10 Large-denomination time deposits4 118.0 145.2 194.7 219.4 235.0 230.7 226.2 225.3' 229.0' 232.2 Not seasonally adjusted MEASURES1 11 M-1A 313.5 337.2 360.9 379.2 362.2 370.1 375.7 377.5 382.9 388.4 12 M-1B 316.1 341.3 369.3 396.0 380.5 389.7 396.5 399.4 406.1' 412.4 13 M-2 1,169.1 1,295.9 1,403.7 1,527.3 1,559.2 1,587.5 1,615.1 1,626.2 1,638.9' 1,654.1 14 M-3 1,303.8 1,464.5 1,629.2 1,780.8 1,820.1 1,843.9 1,868.3' 1,883.3 1,898.5' 1,919.4 15 L2 1,527.1 1,718.5 1,931.1 2,143.6 2,210.9 2,227.3' 2,244.7' 2,264.1' 2,284.7' n.a. COMPONENTS 16 Currency 82.1 90.3 99.4 108.2 109.9 111.1 112.7 113.7 113.7 114.9 17 Demand deposits 231.3 247.0 261.5 271.0 252.2 259.0 263.0 263.9 269.2 273.5 18 Other checkable deposits5 2.7 4.1 8.3 16.7 18.4 19.6 20.8 21.9 23.2 24.1 19 Overnight RPs and Eurodollars6 13.6 18.6 23.9 25.3 21.3 22.5 26.6 28.9 30.1' 30.4 20 Money market mutual funds 3.4 3.8 10.3 43.6 66.8 74.2 80.6 80.7 78.2 77.4 21 Savings deposits 444.9 483.2 472.9 413.8 374.4 383.6 396.7 404.6 408.2' 409.1 22 Small-denomination time deposits3 393.5 451.3 529.8 651.5 719.1 720.4 717.7' 715.6 719.4' 727.9 23 Large-denomination time deposits4 119.7 147.7 198.2 223.0 233.9 228.4 223.8 225.4 228.7' 233.0 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-1A: 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-denomination time deposits are those issued in amounts of less than Reserve float; and (2) currency outside the Treasury, Federal Reserve Banks, and $100,000. the vaults of commercial banks. 4. Large-denomination time deposits are those issued in amounts of $100,000 M-IB: M-l A plus negotiable order of withdrawal and automatic transfer service or more and are net of the holdings of domestic banks, thrift institutions, the U.S. accounts at banks and thrift institutions, credit union share draft accounts, and government, money market mutual funds, and foreign banks and official institudemand deposits at mutual savings banks. tions. M-2: M-1B plus savings and small-denomination time deposits at all depository 5. Includes ATS and NOW balances at all institutions, credit union share draft institutions, overnight repurchase agreements at commercial banks, overnight Eu- balances, and demand deposits at mutual savings banks. rodollars held by U.S. residents other than banks at Caribbean branches of member 6. Overnight (and continuing contract) RPs are those issued by commercial banks, and money market mutual fund shares. banks to the nonbank public, and overnight Eurodollars are those issued by Ca- M-3: M-2 plus large-denomination time deposits at all depository institutions ribbean branches of member banks to U.S. nonbank customers. and term RPs at commercial banks and savings and loan associations. NOTE. Latest monthly and weekly figures are available from the Board's 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 DomesticN onfinancial Statistics • December 1980 1.22 AGGREGATE RESERVES AND DEPOSITS Member Banks Billions of dollars, averages of daily figures 1980 Item 1977 1978 1979 Dec. Dec. Dec. Apr. May June July Aug. Sept. Oct. Seasonally adjusted 1 Reserves1 36.00 41.16 43.57 44.85 44.45 43.96 42.78 40.75 41.54 41.74 2 Nonborrowed 35.43 40.29 42.10 42.39' 43.43 43.58 42.39 40.09 40.23 40.43 3 Required 35.81 40.93 43.13 44.65 44.27 43.76 42.50' 40.45 41.27 41.52 4 Monetary base2 127.6 142.2 153.8 157.9 158.5 158.9 158.8 158.2 159.5 160.9 5 Deposits subject to reserve requirements3 567.6 616.1 644.4 655.4 656.8 658.0 658.5 667.8 678.2 684.5 6 Time and savings 385.6 428.8 451.1 464.2 467.7 467.9 467.0 474.2 482.0 486.6 Demand 7 Private 178.5 185.1 191.5 188.7 187.3 188.4 189.1 191.5 194.5 195.5 8 U.S. government 3.5 2.2 1.8 2.4 1.8 1.7 2.5 2.1 1.8 2.4 Not seasonally adjusted 9 Monetary base2 129.8 144.6 156.3 157.5 157.8 158.6 159.6 158.0 159.0 160.6 10 Deposits subject to reserve requirements3 575.3 624.0 652.6 657.7 651.5 656.9 658.2 662.5 675.6 684.0 11 Time and savings 386.4 429.6 452.0 464.7 467.7 467.4 466.0 471.8 479.6 485.7 Demand 12 Private 185.1 191.9 198.6 190.4 182.1 187.2 190.0 189.0 193.9 196.3 13 U.S. government 3.8 2.5 2.0 2.6 1.7 2.3 2.2 1.7 2.1 2.1 1. Member bank reserve series reflect actual reserve requirement percentages 2. Includes total reserves (member bank reserve balances in the current week with no adjustment to eliminate the effect of changes in Regulations D and M. plus vault cash held two weeks earlier); currency outside the U.S. Treasury, Federal Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percentage Reserve Banks, and the vaults of commercial banks; and vault cash of nonmember points was imposed on time deposits of $100,000 or more. This action increased banks. required reserves approximately $3.0 billion in the week beginning Nov. 16, 1978. 3. Includes total time and savings deposits and net demand deposits as defined Effective Oct. 11, 1979, an 8 percentage point marginal reserve requirement was by Regulation D. Private demand deposits include all demand deposits except imposed on "managed liabilities" (liabilities that have been actively used to finance those due to the U.S. government, less cash items in process of collection and rapid expansion in bank credit). On Oct. 25, 1979, reserves of Edge Act corpo- demand balances due from domestic commercial banks. rations were included in member bank reserves. This action raised required reserves $318 million. Effective Mar. 12, 1980, the marginal reserve requirement of NOTE. Latest monthly and weekly figures are available from the Board's 8 percentage points was raised to 10 percentage points. In addition the base upon H.3(502) statistical release. Back data and estimates of the impact on required which the marginal reserve requirement is calculated was reduced. This action reserves and changes in reserve requirements are available from the Banking increased required reserves about $1,693 million in the week ending April 2, 1980. Section, Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Aggregates A15 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1980 1980 1977 1978 1979 1977 1978 1979 CCCaaattteeegggooorrryyy DDeecc.. DDeecc.. DDeecc.. AAuugg.. SSeepptt.. AAuugg.. SSeepptt.. Seasonally adjusted Not seasonally adjusted 1 Total loans and securities2 891.1 1,014.33 1,132.54 1,176.2 1,191.2 899.1 1,023.83 1,143.04 1,175.8 1,192.9 2 U.S. Treasury securities 99.5 93.4 93.8 104.4 106.5 100.7 94.6 95.0 102.3 104.7 3 Other securities 159.6 173.I3 191.5 207.0 207.9 160.2 173.93 192.3 206.5 207.9 4 Total loans and leases2 632.1 747.83 847.24 864.8 876.7 638.3 755.43 855.74 867.0 880.3 5 Commercial and industrial loans 211.25 246.56 290.5 4 301.2 307.4 212.65 248.26 292.44 301.0 307.3 6 Real estate loans 175.25 210.5 242.44 252.4 253.7 175.55 210.9 242.94 253.2 254.9 7 Loans to individuals 138.2 164.9 182.7 171.5 171.4 139.0 165.9 183.8 173.1 173.4 8 Security loans 20.6 19.4 18.3 15.8 15.5 22.0 20.7 19.6 15.9 15.5 9 Loans to nonbank financial institutions . 25.85 27.17 30.34 28.3 28.6 26.35 27.67 30.84 28.6 29.1 10 Agricultural loans 25.8 28.2 31.0 32.7 33.0 25.7 28.1 30.8 33.4 33.6 11 Lease financing receivables 5.8 7.4 9.5 10.7 10.81 ) 5.8 7.4 9.5 10.7 10.8 12 All other loans 29.5 43.63 42.6 52.2 56.3 31.5 46.63 45.9 51.0 55.7 MEMO: 13 Total loans and securities plus loans sold2*9 895.9 1,018.13 1,135.34'8 1,179.1 1,194.1 903.9 1,027.63 1,145.74'8 1,178.7 1,195.8 14 Total loans plus loans sold2-9 636.9 751.63 850.004-8 867.7 879.7 643.0 759.23 858.44-8 869.9 883.2 15 Total loans sold to affiliates9 4.8 3.8 2.8s 2.9 2.9 4.8 3.8 2.88 2.9 2.9 16 Commercial and industrial loans plus loans sold9 213.95 248.56-10 292.3 4-8 303.2 309.4 215.3s 250.16.!0 294.24-8 302.9 309.2 17 Commercial and industrial loans sold9 .. 2.7 I.910 1.88 1.9 1.9 2.7 1.910 1.88 1.9 1.9 18 Acceptances held 7.5 6.8 8.5 9.3 8.9 8.6 7.5 9.4 8.6 8.2 19 Other commercial and industrial loans .. 203.75 239.7 282.0 291.9 298.5 203.95 240.9 283.1 292.4 299.1 20 To U.S. addressees11 193.85 226.6 263.2 271.8 277.9 193.75 226.5 263.2 272.3 278.3 21 To non-U.S. addressees 9.95 13.1 18.8 20.1 20.7 10.35 14.4 19.8 20.1 20.8 22 Loans to foreign banks 13.5 21.2 18.7 21.9 23.5 14.6 23.0 20.1 21.6 23.1 23 Loans to commercial banks in the United States 54.1 57.3 77.8 102.9 97.8 56.9 60.3 81.9 96.3 94.7 1. Includes domestic chartered banks; U.S. branches, agencies, and New York 7. As of Dec. 1, 1978, nonbank financial loans were reduced $0.1 billion as the investment company subsidiaries of foreign banks; and Edge Act corporations. result of reclassification. 2. Excludes loans to commercial banks in the United States. 8. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million and 3. As of Dec. 31, 1978, total loans and securities were reduced by $0.1 billion. commercial and industrial loans sold were reduced $700 million due to corrections "Other securities" were increased by $1.5 billion and total loans were reduced by of two banks in New York City. $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, nontions. 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 securities 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 $0.2 billion and nonbank financial loans $0.1 billion; real estate loans were increased $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 Nonfinancial Statistics • December 1980 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars December outstanding Outstanding ini 1980 SSoouurrccee 1976 1977 1978 Jan. Feb. Mar. Apr. May June July Aug. Sept. Total nondeposit funds 1 Seasonally adjusted2 54.7 61.8 85.4 122.5 129.2 133.4 124.2 120.0 113.6 113.6 111.0 112.3 2 Not seasonally adjusted 53.3 60.4 84.4 121.2 125.9 130.4 121.1 123.2 113.7 117.7 113.9 112.8 Federal funds, RPs, and other borrowings from nonbanks 3 Seasonally adjusted3 47.1 58.4 74.8 92.0 97.2 97.9 94.7 94.2 96.1 100.1 99.1 103.5 4 Not seasonally adjusted 45.8 57.0 73.8 90.6 93.9 94.8 91.7 97.4 96.2 104.2 102.1 104.0 5 Net Eurodollar borrowings, not seasonally adjusted ... 3.7 -1.3 6.8 27.9 29.4 32.9 26.8 23.2 14.7 10.7 8.9 5.9 6 Loans sold to affiliates, not seasonally adjusted4-5 3.8 4.8 3.8 2.7 2.6 2.6 2.6 2.6 2.8 2.8 2.9 2.9 MEMO 7 Domestic chartered banks net positions with own foreign branches, not seasonally adjusted6 -6.0 -12.5 -10.2 5.9 6.6 9.3 6.0 2.7 -5.2 -8.1 -9.9 -14.1 8 Gross due from balances 12.8 21.1 24.9 23.0 23.4 23.6 24.4 27.3 29.9 32.4 35.3 37.6 9 Gross due to balances 6.8 8.6 14.7 28.9 29.8 32.9 30.4 30.0 24.7 24.3 25.4 23.5 10 Foreign-related institutions net positions with directly related institutions, not seasonally adjusted7 9.7 11.1 17.0 22.0 22.8 23.6 20.9 20.5 19.9 18.8 18.9 19.9 11 Gross due from balances 8.3 10.3 14.2 29.6 30.4 31.9 28.5 28.4 28.5 30.6 30.7 31.6 12 Gross due to balances 18.1 21.4 31.2 51.6 53.2 55.6 49.4 48.8 48.4 49.4 49.6 51.6 13 Security RP borrowings, seasonally adjusted8 27.9 36.3 44.8 51.0 49.5 45.0 41.5 40.1 45.0 50.4 52.7 51.4 14 Not seasonally adjusted 27.0 35.1 43.6 48.3 48.2 44.1 40.6 42.1 44.7 50.2 54.2 53.7 15 U.S. Treasury demand balances, seasonally adjusted9 . 3.9 4.4 8.7 12.7 11.3 7.5 8.6 9.4 8.6 10.7 11.6 12.5 16 Not seasonally adjusted 4.4 5.1 10.3 12.7 11.7 7.8 9.0 8.4 10.0 9.2 9.1 14.1 17 Time deposits, $100,000 or more, seasonally adjusted10 137.7 162.0 213.0 229.1 235.6 237.1 240.3 242.0 237.0 233.1 233.4 237.8 18 Not seasonally adjusted 140.0 165.4 217.9 233.0 236.8 239.2 238.4 240.1 234.9 229.2 231.1 235.6 1. Commercial banks are those in the 50 states and the District of Columbia 4. Loans initially booked by the bank and later sold to affiliates that are still with national or state charters plus U.S. branches, agencies, and New York in- held by affiliates. Averages of Wednesday data. vestment company subsidiaries of foreign banks and Edge Act corporations. 5. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million due to 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from corrections of two New York City banks. nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. 6. Includes averages of daily figures for member banks and quarterly call report Includes averages of Wednesday data for domestic chartered banks and averages figures for nonmember banks. of current and previous month-end data for foreign-related institutions. 7. Includes averages of current and previous month-end data until August 1979; 3. Other borrowings are borrowings on any instrument, such as a promissory beginning September 1979 averages of daily data. note or due bill, given for the purpose of borrowing money for the banking business. 8. Based on daily average data reported by 122 large banks beginning February This includes borrowings from Federal Reserve Banks and from foreign banks, 1980 and 46 banks before February 1980. 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 and commercial banks. Averages of daily data. averages of current and previous month-end data for foreign-related institutions. 10. Averages of Wednesday figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A17 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1980 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. DOMESTICALLY CHARTERED COMMERCIAL BANKS1 1 Loans and investments 1,133.4 1,143.6 1,142.8 1,151.9 1,150.5 1,153.2 1,158.3 1,172.5 1,182.1 1,199.2 1,223.5 2 Loans, gross 849.7 857.0 854.6 861.2 857.1 857.0 857.4 866.9 873.9 886.4 906.0 3 Interbank 57.2 58.0 55.6 62.4 67.4 66.6 66.8 67.8 67.0 66.9 75.5 4 Commercial and industrial 252.6 256.2 258.3 259.2 256.0 256.8 256.4 258.7 262.9 268.2 274.8 5 Other 540.0 542.9 540.7 539.6 533.7 533.6 534.1 540.3 543.9 551.3 555.7 6 U.S. Treasury securities 92.4 93.6 94.2 93.5 93.9 95.2 97.6 100.3 102.1 103.3 106.0 7 Other securities 191.2 192.9 193.9 197.2 199.5 201.0 203.3 205.3 206.1 209.4 211.5 8 Cash assets, total 148.4 149.9 153.8 168.2 172.4 150.4 154.1 148.7 156.6 156.0 175.7 9 Currency and coin 17.3 17.1 16.8 16.8 17.8 17.4 17.7 18.4 18.0 18.5 17.1 10 Reserves with Federal Reserve Banks 28.3 30.7 34.2 33.2 37.9 29.5 32.1 28.9 31.2 31.6 30.3 11 Balances with depository institutions 43.7 43.4 43.1 49.7 47.9 45.4 44.7 45.6 46.6 47.0 56.2 12 Cash items in process of collection .. 59.0 58.7 59.8 68.6 68.9 58.0 59.6 55.8 60.9 58.8 72.2 13 Other assets 63.1 65.0 66.1 73.3 72.7 77.4 77.0 82.6 87.6 88.0 76.0 14 Total assets/total liabilities and capital .. 1,344.9 1,358.4 1,362.7 1,393.5 1,395.7 1,381.0 1,389.4 1,403.8 1,426.3 1,443.2 1,475.2 15 Deposits 1,022.5 1,028.9 1,032.1 1,060.0 1,057.3 1,044.7 1,050.1 1,059.5 1,074.9 1,091.1 1,124.3 16 Demand 362.4 358.7 354.5 377.4 370.2 358.0 363.6 363.4 370.0 376.3 393.4 17 Savings 200.6 199.9 196.5 189.3 192.3 197.8 205.7 208.7 209.4 211.4 210.0 18 Time 459.6 470.3 481.1 493.4 494.8 488.9 480.8 487.4 495.5 503.5 520.9 19 Borrowings 143.1 145.1 142.1 147.0 154.1 152.5 158.6 160.1 165.3 163.4 159.0 20 Other liabilities 77.5 81.6 84.2 81.2 78.5 76.6 74.8 76.2 76.4 75.6 79.0 21 Residual (assets less liabilities) 101.8 102.9 104.2 105.2 105.7 107.1 106.0 108.0 109.6 113.1 112.9 MEMO: 22 U.S. Treasury note balances included in borrowing 15.0 8.1 9.4 14.3 5.1 13.1 7.6 8.7 15.2 11.5 4.4 23 Number of banks 14,594 14,609 14,626 14,629 14,639 14,646 14,658 14,666 14,678 14,760 14,692 ALL COMMERCIAL BANKING INSTITUTIONS2 24 Loans and investments 1,217.7 1,230.8 1,231.8 1,240.9 1,239.2 1,241.9 1,279.6 25 Loans, gross 930.7 941.0 940.2 946.8 942.4 942.2 964.2 26 Interbank 75.4 78.3 75.2 82.1 88.0 84.8 87.2 27 Commercial and industrial 295.1 298.5 301.7 >302.0 298.1 297.8 307.1 28 Other 560.1 564.2 563.4 562.7 556.2 559.6 573.1 29 U.S. Treasury securities 94.3 95.5 96.2 95.5 95.9 97.2 104.5 30 Other securities 192.7 194.4 195.4 198.6 201.0 202.4 207.7 31 Cash assets, total 166.5 168.8 174.0 187.3 190.7 172.0 179.8 32 Currency and coin 17.3 17.1 16.8 16.8 17.8 17.4 18.0 33 Reserves with Federal Reserve Banks 28.9 31.3 35.0 33.9 38.7 30.3 31.7 34 Balances with depository institutions 59.8 60.5 61.1 66.6 63.8 64.6 n. a. n .a. 67.6 n. a. n .a. 35 Cash items in process of collection .. 60.4 60.0 61.2 69.9 70.4 59.7 62.5 36 Other assets 83.7 86.8 91.6 99.0 98.1 105.5 117.2 37 Total assets/total liabilities and capital .. 1,468.0 1,486.5 1,497.5 1,527.2 1,528.0 1,519.4 1,576.6 38 Deposits 1,063.1 1,070.0 1,073.5 1,101.1 1,097.1 1,088.7 1,122.2 39 Demand 380.5 376.8 373.6 396.6 387.7 379.1 391.2 40 Savings 201.3 200.3 196.7 189.5 192.6 198.2 209.8 41 Time 481.3 492.9 503.2 515.0 516.9 511.4 521.2 42 Borrowings 179.5 182.9 186.5 190.8 196.3 197.9 212.6 43 Other liabilities 121.1 128.4 130.9 127.8 126.6 124.1 130.6 44 Residual (assets less liabilities) 104.2 105.2 106.5 107.4 108.1 108.7 111.2 MEMO: 45 U.S. Treasury note balances included in borrowing 15.0 8.1 9.4 14.3 5.1 13.1 15.2 46 Number of banks 14,962 14,978 14,995 15,004 15,016 15,019 15,069 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 corpo- they are for the last day of the month. rations, and New York state foreign investment corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • December 1980 1.26 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 1980 AAccccoouunntt Oct. 1 Oct. 8 Oct. 15 Oct. 22 Oct. 29 Nov. 5p Nov. 12p Nov. 19 p Nov. 26p 1 Cash items in process of collection 57,586 50,163 65,802 51,492 48,411 60,752 62,087 5533,,113366 5577,,998899 2 Demand deposits due from banks in the United States 21,347 20,337 21,311 19,183 17,181 24,966 24,529 18,304 18,787 3 All other cash and due from depository institutions 33,389 27,733 30,263 33,466 34,739 35,103 31,660 34,215 33,655 4 Total loans and securities 536,955 535,690 537,879 530,954 534,310 543,994 545,194 542,085 543,466 Securities 5 U.S. Treasury securities 38,706 37,966 38,308 37,972 37,674 38,294 38,397 38,729 38,506 6 Trading account 4,324 4,241 4,388 4,191 3,777 4,360 4,380 4,677 4,354 7 Investment account, by maturity 34,382 33,725 33,920 33,781 33,897 33,933 34,017 34,052 34,153 8 One year or less 8,068 7,959 8,288 8,396 8,579 8,528 8,611 8,615 8,745 9 Over one through five years 22,731 22,295 22,157 21,944 21,929 21,981 22,011 22,042 22,053 10 Over five years 3,583 3,470 3,476 3,441 3,389 3,424 3,395 3,395 3,355 11 Other securities 76,173 77,097 76,553 76,539 76,562 76,722 77,:274 76,919 76,756 12 Trading account 2,810 3,390 2,869 2,984 2,941 3,142 3,458 2,979 2,745 13 Investment account 73,362 73,707 73,684 73,554 73,621 73,580 73,815 73,940 74,011 14 U.S. government agencies 16,047 16,066 16,034 15,915 15,973 15,907 15,939 15,889 15,855 15 States and political subdivision, by maturity ... 54,611 54,943 54,932 54,916 54,926 54,987 55,174 55,288 55,398 16 One year or less 7,432 7,415 7,384 7,243 7,296 7,346 7,432 7,426 7,398 17 Over one year 47,178 47,528 47,548 47,674 47,629 47,641 47,742 47,862 47,999 18 Other bonds, corporate stocks and securities .. 2,704 2,698 2,718 2,722 2,722 2,686 2,702 2,763 2,758 Loans 19 Federal funds sold1 26,229 28,093 27,720 22,511 23,952 27,267 28,163 24,858 23,505 20 To commercial banks 20,027 20,605 21,039 15,552 16,720 20,437 19,944 17,642 16,743 21 To nonbank brokers and dealers in securities 4,142 5,159 4,725 4,807 4,820 4,660 5,252 5,305 4,661 22 To others 2,060 2,329 1.956 2,152 2,411 2,169 2,968 1,910 2,100 23 Other loans, gross 408,566 405,264 408,063 406,751 408,948 414,510 414,221 414,426 417,524 24 Commercial and industrial 166,204 165,548 165,946 165,964 166,168 169,151 169,627 169,471 171,451 25 Bankers acceptances and commercial paper ... 4,971 4,406 4,424 4,280 4,480 4,698 4,714 4,314 4,374 26 Allother 161,233 161,142 161,522 161,684 161,688 164,453 164,913 165,157 167,076 27 U.S. addressees 155,033 154,832 155,108 155,336 155,276 157,968 158,335 158,381 160,202 28 Non-U.S. addressees 6,200 6,310 6,414 6,348 6,412 6,485 6,578 6,775 6,874 29 Real estate 108,298 108,462 108,871 109,194 109,482 109,743 110,059 110,478 110,586 30 To individuals for personal expenditures 71,228 71,066 71,006 71,010 71,111 71,069 71,041 71,038 71,222 To financial institutions 31 Commercial banks in the United States 4,151 3,678 4,012 3,638 3,629 3,843 4,199 3,814 4,096 32 Banks in foreign countries 7,778 7,314 8,449 7,966 8,118 8,453 8,455 8,374 8,440 33 Sales finance, personal finance companies, etc . 8,604 8,498 8,916 8,991 8,911 9,803 9,057 8,904 9,023 34 Other financial institutions 15,674 15,416 15,311 15,111 15,113 15,538 15,576 15,684 15,446 35 To nonbank brokers and dealers in securities .... 5,532 4,968 5,391 4,593 4,939 5,623 5,476 6,045 5,885 36 To others for purchasing and carrying securities2 . 2,112 2,103 2,113 2,109 2,145 2,130 2,115 2,164 2,148 37 To finance agricultural production 5,437 5,461 5,403 5,529 5,487 5,494 5,462 5,466 5,366 38 Allother 13,547 12,749 12,645 12,646 13,844 13,664 13,153 12,988 13,862 39 LESS: Unearned income 7,082 7,096 7,104 7,139 7,162 7,078 7,105 7,081 7,053 40 Loan loss reserve 5,636 5,633 5,660 5,679 5,664 5,722 5,755 5,766 5,772 41 Other loans, net 395,847 392,534 395,298 393,932 396,122 401,711 401,361 401,579 404,699 42 Lease financing receivables 8,946 8,946 9,001 8,991 9,043 9,013 9,030 9,062 9,078 43 AH other assets 84,093 83,339 81,376 78,796 78,980 81,280 82,566 80,828 81,588 44 Total assets 742,316 726,208 745,633 722,883 722,664 755,109 755,066 737,629 744,564 Deposits 45 Demand deposits 208,608 197,809 221,533 194,085 191,810 218,490 219,887 197,064 201,912 46 Mutual savings banks 863 790 965 607 619 871 873 620 607 47 Individuals, partnerships, and corporations 145,288 138,494 150,662 136,323 135,213 146,564 149,852 137,075 142,073 48 States and political subdivisions 5,135 4,850 5,534 4,794 4,658 5,088 4,569 4,674 4,922 49 U.S. government 1,030 858 1,786 742 787 2,927 1,358 2,883 2,143 50 Commercial banks in the United States 37,536 35,951 42,878 33,955 34,457 44,253 44,337 33,864 34,325 51 Banks in foreign countries 7,922 7,886 8,602 7,900 7,618 8,071 8,929 8,810 8,338 52 Foreign governments and official institutions 1,376 1,395 1,628 1,439 1,292 2,261 1,933 1,424 1,607 53 Certified and officers' checks 9,457 7,585 9,476 8,325 7,165 8,455 8,036 7,716 7,895 54 Time and savings deposits 285,113 287,028 285,683 286,789 289,376 291,384 295,019 297,514 300,363 55 Savings 76,664 76,556 76,449 76,241 76,043 76,542 75,742 75,344 74,640 56 Individuals and nonprofit organizations 71,733 71,711 71,596 71,425 71,217 71,705 70,952 70,543 69,912 57 Partnerships and corporations operated for profit 44,,007799 4,106 44,,005533 4,103 4,171 4,142 4,102 4,066 4,052 58 Domestic governmental units 835 720 784 694 635 674 664 709 655 59 Allother 16 19 17 18 20 20 24 25 22 60 Time 208,449 210,472 209,234 210,548 213,333 214,842 219,277 222,170 225,722 61 Individuals, partnerships, and corporations 177,063 178,748 177,529 178,429 181,123 182,736 186,769 189,205 192,598 62 States and political subdivisions 19,118 19,366 19,366 19,579 19,583 19,521 19,767 20,123 20,237 63 U.S. government 296 315 322 315 315 328 322 308 303 64 Commercial banks in the United States 5,640 5,638 5,646 5,743 5,805 5,807 5,998 6,097 6,261 65 Foreign governments, official institutions, and banks 6,332 6,404 6,372 6,482 6,508 6,451 6,422 6,437 6,324 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 2,791 274 275 3,499 2,082 2,365 1,401 1,638 2,975 67 Treasury tax-and-loan notes 12,740 4,480 5,633 6,901 7,996 774 278 1,901 2,781 68 All other liabilities for borrowed money3 123,240 128,848 124,516 122,586 122,468 132,308 129,431 128,331 124,490 69 Other liabilities and subordinated notes and debentures 60,551 58,359 58,937 59,978 59,730 60,188 59,481 61,856 62,607 70 Total liabilities 693,043 676,799 696,577 673,838 673,464 705,508 705,498 688,304 695,128 71 Residual (total assets minus total liabilities)4 49,272 49,409 49,056 49,045 49,200 49,601 49,568 49,325 49,436 1. Includes securities purchased under agreements to resell. 4. This is not a measure of equity capital for use in capital adequacy analysis or 2. Other than financial institutions and brokers and dealers. for other analytic uses. 3. Includes federal funds purchased and securities sold under agreements to Digitized for FRreApuSrcEhRase ; for information on these liabilities at banks with assets of $1 billion or more on Dec. 31, 1977, see table 1.13. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A19 1.27 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 1980 Oct. 1 Oct. 8 Oct. 15 Oct. 22 Oct. 29 Nov. 5p Nov. 12P Nov. 19P Nov. 26? 1 Cash items in process of collection 54,785 47,711 62,230 48,943 46,204 57,947 58,552 50,530 54,967 2 Demand deposits due from banks in the United States .. 20,648 19,703 20,408 18,580 16,678 24,236 23,763 17,675 18,144 3 All other cash and due from depository institutions 31,079 25,911 27,977 30,977 32,337 32,746 29,320 31,886 31,537 4 Total loans and securities 500,730 499,116 501,268 494,987 498,052 507,412 508,970 505,741 506,892 Securities 5 U.S. Treasury securities 35,982 35,264 35,588 35,299 34,996 35,628 35,719 36,043 35,824 6 Trading account 4,268 4,202 4,284 4,127 3,714 4,293 4,297 4,604 4,296 7 Investment account, by maturity 31,714 31,062 31,304 31,172 31,282 31,334 31,422 31,438 31,527 8 One year or less 7,536 7,441 7,770 7,874 8,052 7,996 8,085 8,080 8,200 9 Over one through five years 20,971 20,527 20,434 20,233 20.205 20,278 20,306 20,327 20,327 10 Over five years 3,207 3,094 3,100 3,065 3,025 3,060 3,031 3,031 3,000 11 Other securities 69,871 70,801 70,260 70,210 70,206 70,365 70.909 70,526 70,352 12 Trading account 2,710 3,320 2,805 2,921 2,852 3,049 3,391 2,906 2,684 13 Investment account 67,161 67,481 67,455 67,290 67,355 67,315 67,518 67,620 67,668 14 U.S. government agencies 14,863 14,873 14,838 14,714 14,769 14,699 14,718 14,665 14,624 15 States and political subdivision, by maturity 49,763 50,081 50,069 50,024 50,035 50,101 50,266 50,360 50,456 16 One year or less 6,706 6,683 6,657 6,479 6,536 6,573 6,648 6,630 6,599 17 Over one year 43,058 43,398 43,412 43,545 43,498 43,528 43,618 43,730 43,857 18 Other bonds, corporate stocks and securities 2,534 2,527 2,548 2,551 2,551 2,515 2,534 2,595 2,588 Loans 19 Federal funds sold1 23,054 24,500 24,194 19,627 20,860 23,987 25,297 21,998 20,617 20 To commercial banks 17,140 17,485 17,907 13,044 13,981 17,503 17,468 15,103 1,4266 21 To nonbank brokers and dealers in securities 3,874 4,712 4,358 4,462 4,507 4,342 4,895 5,025 4,286 22 To others 2,040 2,303 1,929 2,122 2,372 2,142 2,934 1,870 2.066 23 Other loans, gross 383,599 380,332 383,043 381,725 383,867 389,289 388,960 389,074 391,978 24 Commercial and industrial 157,796 157,083 157,487 157,440 157,630 160,552 161,014 160,796 162,705 25 Bankers acceptances and commercial paper 4,809 4,229 4,215 4,060 4,272 4,478 4,486 4,087 4,146 26 All other 152,988 152,854 153,273 153,380 153,358 156,074 156,529 156,709 158,558 27 U.S. addressees 146,853 146,607 146,923 147,100 147,011 149,655 150,016 150,000 151,748 28 Non-U.S. addressees 6,135 6,246 6,350 6,280 6,347 6,419 6,512 6,710 6,811 29 Real estate 102,057 102,227 102,609 102,912 103,188 103,448 103,747 104,160 104,279 30 To individuals for personal expenditures 62,872 62,724 62,657 62,654 62,748 62,698 62,692 62,668 62,801 To financial institutions 31 Commercial banks in the United States 4,030 3,565 3,885 3,516 3,510 3,720 4,077 3,685 3,913 32 Banks in foreign countries 7,703 7,229 8,353 7,891 8,047 8,375 8,343 8,299 8,364 33 Sales finance, personal finance companies, etc 8,422 8,330 8,747 8,827 8,740 9,639 8,882 8,712 8,829 34 Other financial institutions 15,264 15,012 14,902 14,714 14,716 15,134 15,164 15,264 15,030 35 To nonbank brokers and dealers in securities 5,460 4,890 5,322 4,531 4,862 5,537 5,395 5,964 5,814 36 To others for purchasing and carrying securities2 1,881 1,870 1,880 1,872 1,900 1,866 1,873 1,926 1,903 37 To finance agricultural production 5,270 5,296 5,236 5,364 5,324 5,329 5,298 5,301 5,208 38 All other 12,842 12,105 11,966 12,004 13,204 12,971 12,476 12,298 13,131 39 LESS: Unearned income 6,465 6,478 6,484 6,516 6,542 6,466 6,491 6,466 6,442 40 Loan loss reserve 5,310 5,304 5,333 5,359 5,335 5,391 5,424 5,434 5,437 41 Other loans, net 371,823 368,551 371,226 369,851 371,990 377,433 377,045 377,174 380,099 42 Lease financing receivables 8,690 8,691 8,743 8,732 8,784 8,752 8,768 8,800 8,814 43 All other assets 81,733 81,074 79,226 76,603 76,712 78,951 80,352 78,724 79,394 44 Total assets 697,666 682,206 699,853 678,822 678J68 710,044 709,725 693,356 699,749 Deposits 45 Demand deposits 195,768 185,648 207,921 181,950 179,986 205,464 206,561 184,872 189,290 46 Mutual savings banks 825 754 932 580 591 832 838 589 577 47 Individuals, partnerships, and corporations 135,153 128,751 139,982 126,755 125,735 136,456 139,317 127,442 131,959 48 States and political subdivisions 4,551 4,326 4,886 4,052 4,086 4,489 3,991 4,094 4,357 49 U.S. government 934 769 1,606 645 718 2,654 1,242 2,672 1,988 50 Commercial banks in the United States 36,017 34,567 41,206 32,629 33,150 42,714 42,722 32,502 32,957 51 Banks in foreign countries 7,830 7,820 8,535 7,839 7,559 7,950 8,829 8,728 8,259 52 Foreign governments and official institutions 1,371 1,390 1,625 1,436 1,292 2,259 1,916 1,422 1,588 53 Certified and officers' checks 9,088 7,270 9,149 8,015 6,855 8,109 7,705 7,423 7,604 54 Time and savings deposits 265,358 267,073 265,612 266,736 269,315 271,224 274,821 277,141 279,865 55 Savings 70,892 70,774 70,651 70,503 70,326 70,762 70,032 69,676 69,005 56 Individuals and nonprofit organizations 66,333 66,305 66,203 66,059 65,868 66,308 65,614 65,248 64,642 57 Partnerships and corporations operated for profit ... 3,774 3,799 3,752 3,796 3,857 3,826 3,786 3,755 3,739 58 Domestic governmental units 769 651 680 629 581 607 607 649 602 59 All other 16 18 17 18 20 20 24 25 21 60 Time 194,466 196,300 194,961 196,233 198,989 200,462 204,789 207,465 210,860 61 Individuals, partnerships, and corporations 165,191 166,704 165,380 166,250 168,878 170,452 174,399 176,679 179,911 62 States and political subdivisions 17,245 17,488 17,496 17,702 17,731 17,678 17,908 18,218 18,345 63 U.S. government 281 301 307 300 300 313 306 293 287 64 Commercial banks in the United States 5,416 5,401 5,406 5,500 5,571 5,568 5,753 5,838 5,993 65 Foreign governments, official institutions, and banks 6,332 6,404 6,372 6,482 6,508 6,451 6,422 6,437 6,324 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 2,700 248 142 3,365 2.045 2,352 1,154 1,528 2,797 67 Treasury tax-and-loan notes 11,829 4,144 5,237 6,359 7,411 710 231 1,730 2,584 68 All other liabilities for borrowed money3 116,927 121,882 117,546 115,963 115,733 125,125 122,536 121,545 117,858 69 Other liabilities and subordinated notes and debentures 59,044 57,032 57,568 58,604 58,303 58,797 58,102 60,480 61,190 70 Total liabilities 651,627 636,028 654,026 632,978 632,793 663,672 663,404 647,295 653,584 71 Residual (total assets minus total liabilities)4 46,039 46,179 45,826 45,844 45,974 46,372 46,321 46,060 46,165 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 agreement 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

A20 Domestic Nonfinancial Statistics • December 1980 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1980 AAccccoouunntt Oct. 1 Oct. 8 Oct. 15 Oct. 22 Oct. 29 Nov. 5p Nov. 12P Nov. 19p Nov. 26p 1 Cash items in process of collection 21,691 18,886 23,370 19,743 18,340 22,246 22,704 18,836 20,101 2 Demand deposits due from banks in the United States ... 15,161 14,791 13,692 13,798 11,930 18,887 18,161 12,747 12,558 3 All other cash and due from depository institutions 9,494 7,113 7,103 9,130 9,004 9,670 8,744 8,784 9,183 4 Total loans and securities1 118,737 118,370 120,262 117,477 120,225 122,382 122,470 122,274 122,467 Securities 5 6 7 Investment account, by maturity 8,624 8,206 8,267 8,026 8,105 8,097 8,169 8,237 8,292 8 One year or less 1,345 1,150 1,286 1,216 1,306 1,323 1,340 1,366 1,387 9 Over one through five years 6,739 6,522 6,438 6,271 6,261 6,236 6,291 6,332 6,357 10 Over five years 539 533 543 538 538 538 538 538 549 11 1122 13 Investment account 13,733 13,281 13,823 13,845 13,816 13,791 13,860 13,827 13,782 14 U.S. government agencies 2,413 2,408 2,393 2,383 2,392 2,396 2,396 2,342 2,309 15 States and political subdivision, by maturity 10,747 10,840 10,844 10,878 10,835 10,837 10,895 10,900 10,892 16 One year or less 1,966 1,886 1,913 1,828 1,798 1,789 1,846 1,852 1,830 17 Over one year 8,781 8,954 8,931 9,050 9,037 9,048 9,050 9,048 9,061 18 Other bonds, corporate stocks and securities 573 573 587 584 588 588 569 586 582 Loans 19 Federal funds sold3 6,150 6,948 7,415 6,135 7,112 7,467 8,115 7,575 6,967 20 To commercial banks 3,323 4,026 4,244 2,591 3,372 4,061 4,553 3,868 3,641 21 To nonbank brokers and dealers in securities 1,780 1,883 2,056 2,106 2.134 2,102 2,398 2.596 2,193 22 Toothers 1,047 1,039 1,114 1,438 11,,660044 1,303 1,163 1,112 1,133 23 Other loans, gross 93,081 92,237 93,630 92,369 9944,,008888 95,938 95,260 95,590 96,381 24 Commercial and industrial 49,272 48,816 48,900 48,405 48,565 49,593 49,831 49,754 50,458 25 Bankers acceptances and commercial paper 1,377 970 878 828 851 1,036 875 931 885 26 Allother 47,895 47,846 48,022 47,577 47,714 48,557 48,956 48,822 49,573 27 U.S. addressees 45,912 45,817 45,880 45,501 45,600 46,438 46,800 46,632 47,409 28 Non-U.S. addressees 1,983 2,029 2,142 2,076 2,114 2,119 2,156 2,190 2,164 29 Real estate 14,067 14,075 14,174 14,252 14,353 14,404 14,472 14,559 14,559 30 To individuals for personal expenditures 8,988 8,996 9,020 9,010 9,023 9,038 9,050 9,060 9,084 31 To financial institutions Commercial banks in the United States 1,362 1,412 1,492 1,284 1,241 1,328 1,780 1,519 1,561 32 Banks in foreign countries 3,680 3,231 4,167 3,831 4,026 4,339 4,019 4,172 4,137 33 Sales finance, personal finance companies, etc 3,525 3,540 3,810 3,820 3,825 4,379 3,858 3,665 3,781 34 Other financial institutions 4,636 4,505 4,470 4,409 4,377 4,523 4,405 4,586 4,392 35 To nonbank brokers and dealers in securities 3,070 3,074 3,339 2,732 3,020 3,380 3,023 3,391 3,408 36 To others for purchasing and carrying securities4 382 381 393 392 411 426 400 427 403 37 To finance agricultural production 443 448 445 546 542 534 531 533 516 38 Allother 3,656 3,759 3,420 3,687 4,705 3,994 3,890 3,924 4,081 39 LESS: Unearned income 1,099 1,092 1,093 1,118 1,129 1,124 1,131 1,144 1,149 40 Loan loss reserve 1,752 1,749 1,781 1,780 1,767 1,787 1,803 1,812 1,807 41 Other loans, net 90,230 89,396 90,756 89,471 91,192 93,027 92,326 92,634 93,425 42 Lease financing receivables 1,720 1,720 1,728 1,723 1,723 1,682 1,684 1,694 1,696 43 All other assets5 33,702 34,047 33,012 30,821 30,159 31,736 33,384 31,724 32,462 44 Total assets 200,505 194,928 199,167 192,692 191,381 206,604 207,147 196,060 198,467 Deposits 45 Demand deposits 69,476 65,723 74,007 64,628 62,848 75,142 75,726 63,335 64,780 46 Mutual savings banks 480 407 463 277 292 402 439 299 270 47 Individuals, partnerships, and corporations 34,862 32,532 34,877 31,920 31,427 34,353 34,242 31,258 32,958 48 States and political subdivisions 597 676 929 456 455 374 395 366 379 49 U.S. government 137 130 338 122 134 393 207 672 524 50 Commercial banks in the United States 21,752 21,641 24,632 20,276 20,516 27,568 28,033 18,961 19,318 51 Banks in foreign countries 6,154 6,147 6,891 6,177 5,865 6,297 7,172 7,063 6,455 52 Foreign governments and official institutions 1,092 1,045 1,290 1,154 1,037 1,992 1,611 1,111 1,312 53 Certified and officers' checks 4,401 3,144 4,586 4,245 3,122 3,762 3,628 3,603 3,566 54 Time and savings deposits 49,856 50,277 49,678 49,783 51,138 51,900 53,307 54,057 54,843 55 Savings 9,967 10,041 10,042 9,976 9,894 10,003 9,980 9,936 9,866 56 Individuals and nonprofit organizations 9,479 9,536 9,515 9,483 9,411 9,512 9,463 9,407 9,350 57 Partnerships and corporations operated for profit ... 345 346 339 343 346 348 356 353 366 58 Domestic governmental units 139 155 184 146 132 138 151 168 143 59 Allother 4 4 4 4 4 5 8 8 7 60 Time 39,889 40,237 39,636 39,808 41,243 41,897 43,328 44,121 44,977 61 Individuals, partnerships, and corporations 33,441 33,674 33,059 33,030 34,490 35,270 36,571 37,379 38,288 62 States and political subdivisions 1,496 1,585 1,624 1,742 1,794 1,784 1,823 1,845 1,773 63 U.S. government 22 21 22 24 26 26 29 26 22 64 Commercial banks in the United States 2,040 2,038 2,039 2,132 2,046 1,970 2,044 2,015 2,038 65 Foreign governments, official institutions, and banks 2,890 2,919 2,891 2,879 2,888 2,846 2,860 2,856 2,856 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 1,232 1,417 500 900 1,725 67 Treasury tax-and-loan notes 2,939 1,018 1,393 1,668 1,956 2 1 319 632 68 All other liabilities for borrowed money6 38,186 39,649 35,622 36,366 36,515 40,275 40,083 38,058 37,556 69 Other liabilities and subordinated notes and debentures .. 23,397 22,889 23,260 23,628 23,218 23,910 22,652 24,060 23,703 70 Total liabilities 185,086 179,556 183,960 177,491 176,175 191,231 191,769 180,729 183,240 71 Residual (total assets minus total liabilities)4 15,419 15,372 15,206 15,201 15,206 15,374 15,379 15,330 15,227 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 A21 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1980 AAccccoouunntt Oct. 1 Oct. 8 Oct. 15 Oct. 22 Oct. 29 Nov. 5 Nov. 12 Nov. 19 Nov. 26 BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and securities adjusted1 525,495 524,136 525,593 524,582 526,787 532,514 533,912 533,475 535,453 2 Total loans (gross) adjusted1 410,617 409,073 410,732 410,072 412,551 417,497 418,241 417,827 420,190 3 Demand deposits adjusted2 112,455 110,838 111,066 107,896 108,156 110,557 112,104 107,182 107,454 4 Time deposits in accounts of $100,000 or more 134,403 135,012 133,681 134,982 137,880 139,348 142,432 144,967 148,024 5 Negotiable CDs 97,287 97,353 95,910 96,601 99,374 100,476 102,809 104,777 107,452 6 Other time deposits 37,116 37,659 37,770 38,382 38,506 38,871 39,623 40,190 40,573 7 Loans sold outright to affiliates3 2,949 2,868 2,775 2,732 2,633 2,733 2,597 2,577 2,650 8 Commercial and industrial 1,948 1,848 1,753 1,811 1,760 1,734 1,704 1,700 1,744 9 Other 1,001 1,020 1,022 921 873 999 892 877 906 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and securities adjusted1 491,335 489,848 491,293 490,302 492,439 498,046 499,341 498,853 500,593 11 Total loans (gross) adjusted1 385,482 383,783 385,445 384,793 387,237 392,053 392,713 392,284 394,417 12 Demand deposits adjusted2 104,032 102,600 102,879 99,734 99,914 102,149 104,044 99,168 99,377 13 Time deposits in accounts of $100,000 or more 126,324 126,839 125,426 126,703 129,543 130,969 134,035 136,405 139,328 14 Negotiable CDs 91,502 91,496 89,958 90,630 93,374 94,467 96,743 98,615 101,179 15 Other time deposits 34,822 35,343 35,469 36,073 36,169 36,502 37,291 37,790 38,149 16 Loans sold outright to affiliates3 2,907 2,825 2,732 2,688 2,590 2,688 2,554 2,534 2,606 17 Commercial and industrial 1,926 1,826 1,730 1,787 1,736 1,708 1,678 1,675 1,720 18 Other 981 999 1,002 902 854 980 876 859 887 BANKS IN NEW YORK CITY 19 Total loans (gross) and securities adjusted14 116,902 115,774 117,400 116,500 118,508 119,904 119,071 119,843 120,220 20 Total loans (gross) adjusted1 94,546 93,747 95,310 94,629 96,586 98,016 97,042 97,778 98,145 21 Demand deposits adjusted2 25,896 25,066 25,666 24,486 23,857 24,935 24,782 24,865 24,838 22 Time deposits in accounts of $100,000 or more 31,128 31,245 30,632 30,857 32,286 32,895 34,075 34,784 35,569 23 Negotiable CDs 23,132 23,117 22,431 22,520 23,902 24,383 25,428 26,010 26,838 24 Other time deposits 7,996 8,128 8,201 8,337 8,384 8,512 8,647 8,773 8,730 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, nonbanks. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • December 1980 1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial Loans Millions of dollars Outstanding Net change during IIInnnddduuussstttrrryyy ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1980 1980 July 30 Aug. 27 Sept. 24 Oct. 29 Nov. 26p Q2 Q3 Sept. Oct. Nov.P 1 Durable goods manufacturing 22,477 22,965 23,513 23,336 24,098 -2,332 784 548 -176 762 2 Nondurable goods manufacturing 18,532 18,799 19,535' 20,115 20,804 -1,486 1,197' 736' 580 688 3 Food, liquor, and tobacco 3,887 3,897 4,352 4,586 4,921 -1,222 651 455 234 335 4 Textiles, apparel, and leather 5,066 5,230 5,204 5,070 4,906 454 269 -27 -133 -164 5 Petroleum refining 2,616 2,694 2,686r 2,993 3,129 -424 -28' ;-8' 306 136 6 Chemicals and rubber 3,723 3,707 3,733 3,846 4,158 -208 30 26 112 312 7 Other nondurable goods 3,240 3,270 3,559 3,620 3,690 -86 275 289 61 70 8 Mining (including crude petroleum and natural gas) 13,650 13,560 13,958 14,717 15,338 1,162 200 398 760 621 9 Trade 24,279 24,737 24,954' 26,275 27,050 -857 355' 217' 1,320 776 10 Commodity dealers 1,670 1,853 2,118 2,470 2,402 -285 588 266 352 -69 11 Other wholesale 11,557 11,614 11,589 11,880 12,182 -418 -91 -25 291 302 12 Retail 11,052 11,270 11,247' 11,924 12,467 -154 -142' -23' 677 543 13 Transportation, communication, and other public utilities 18,996 19,221 19,224 19,317 20,099 453 479 3 93 782 14 Transportation 7,753 7,652 7,736 7,789 8,019 83 137 84 52 230 15 Communication 2,883 2,918 2,993 3,094 3,161 92 154 76 101 67 16 Other public utilities 8,359 8,651 8,495 8,434 8,919 278 188 -157 -60 484 17 Construction 5,787 5,873 6,031 5,927 5,992 96 61 158 -104 66 18 Services 20,567 20,808 21,315 21,532 22,160 86 1,018 507 217 628 19 All other1 14,964 15,250 15,402 15,792 16,206 -656 403 152 389 414 20 Total domestic loans 139,252 141,214 143,932 147,011 151,748 -3,534 4,498 2,719 3,078 4,737 21 MEMO: Term loans (original maturity more than 1 year) included in domestic loans 73,767 74,976 76,536 76,912 78,942 -1,702 2,241 1,560 376 2,030 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deposits and Commercial Paper A23 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations! Billions of dollars, estimated daily-average balances Commercial banks TTyyppee ooff hhoollddeerr 19792 1980 11997755 11997766 11997777 11997788 DDeecc.. DDeecc.. DDeecc.. DDeecc.. June Sept. Dec. Mar. June Sept. 1 All holders—Individuals, partnerships, and corporations 236.9 250.1 274.4 294.6 285.6 292.4 302.2 288.4 288.6 302.0 2 Financial business 20.1 22.3 25.0 27.8 25.4 26.7 27.1 28.4 27.7 29.6 3 Nonfinancial business 125.1 130.2 142.9 152.7 145.1 148.8 157.7 144.9 145.3 151.9 4 Consumer 78.0 82.6 91.0 97.4 98.6 99.2 99.2 97.6 97.9 101.8 5 Foreign 2.4 2.7 2.5 2.7 2.8 2.8 3.1 3.1 3.3 3.2 6 Other 11.3 12.4 12.9 14.1 13.7 14.9 15.1 14.4 14.4 15.5 Weekly reporting banks 19793 1980 11997755 11997766 11997777 11997788 DDeecc.. DDeecc.. DDeecc.. DDeecc.. June Sept. Dec. Mar. June Sept. 7 All holders—Individuals, partnerships, and corporations 124.4 128.5 139.1 147.0 128.8 132.7 139.3 133.6 133.9 140.6 8 Financial business 15.6 17.5 18.5 19.8 18.4 19.7 20.1 20.1 20.2 21.2 9 Nonfinancial business 69.9 69.7 76.3 79.0 68.1 69.1 74.1 69.1 69.2 72.4 10 Consumer 29.9 31.7 34.6 38.2 33.0 33.7 34.3 34.2 33.9 36.0 11 Foreign 2.3 2.6 2.4 2.5 2.7 2.8 3.0 3.0 3.1 3.1 12 Other 6.6 7.1 7.4 7.5 6.6 7.4 7.8 7.2 7.5 7.9 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. 46o. 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 estisample 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. 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1980 Instrument 1976 1977 1978 19791 Dec. Dec. Dec. Dec. Apr. May June July Aug. Sept. Oct. Commercial paper (seasonally adjusted) 1 All issuers 53,010 65.036 83,420 112,803 120,887 121,032 123,937 122,259 122,607 123,460 Financial companies2 Dealer-placed paper3 2 Total 7,263 8,888 1122,,330000 1177,,557799 18,881 18,526 19,100 18,207 19,092 19,509 3 Bank-related 1,900 2,132 3,521 2,874 3,467 3,591 3,188 3,198 3,313 3,370 n.a. Directly placed paper* 4 Total 32,622 40,612 51,755 64,931 66,110 63,813 62,623 63,777 64,550 65,542 5 Bank-related 5,959 7,102 12,314 17,598 19,166 18,845 19,436 19,239 19,909 19,692 6 Nonfinancial companies5 13,125 15,536 19,365 30,293 35,896 38,693 42,214 40,275 38,965 38,409 Bankers dollar acceptances (not seasonally adjusted) 7 Total 22,523 25,450 33,700 45,321 50,177 52,636 54,356 54,334 54,486 55,774 56,610 Holder 8 Accepting banks 10,442 10,434 8,579 9,865 8,159 9,262 10,051 9,764 9,644 10,275 11,317 9 Own bills 8,769 8,915 7,653 8,327 7,488 8,768 9,113 8,603 8,544 9,004 9,808 10 Bills bought 1,673 1,519 927 1,538 670 493 939 1,161 1,100 1,270 1,509 Federal Reserve Banks 11 Own account 991 954 1 704 0 366 373 310 277 499 566 12 Foreign correspondents 375 362 664 1,382 1,555 1,718 1,784 1,899 1,841 1,820 1,915 13 Others 10,715 13,700 24,456 33,370 40,463 41,290 42,147 42,361 42,724 43,179 42,813 Basis 14. Imports into United States 4,992 6,378 8,574 10,270 10,946 11,651 11,536 12,109 11,861 11,731 12,254 15 Exports from United States 4,818 5,863 7,586 9,640 11,221 11,347 11,339 12,401 12,582 12,991 13,445 16 All other 12,713 13,209 17,540 25,411 28,010 29,637 31,480 29,824 30,043 31,052 30,911 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 1979. 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 such activities as comfactoring, finance leasing, ana other business lending; insurance underwriting; and munications, construction, manufacturing, mining, wholesale and retail trade, Digitized foro tFheRr AinSveEstRme nt activities. transportation, and reserves. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • December 1980 1.33 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 1980—July 2 7 5 1 1 1 1 . .0 50 0 1980—Oct 17 1 .. 1 1 4 3 . . 0 5 0 0 1979— O Se c p t. t . 1 1 2 4 . . 9 3 0 9 1980— J M u a n y e 1 1 6 2 . . 5 6 7 3 Aug 22 11.25 29 14.50 Nov. 15.55 July 11.48 27 11.50 Nov 6 . 15.50 Dec. 15.30 Aug. 11.12 Sept 8 12.00 17 . 16.25 Sept. 12.23 12 12.25 21 . 17.00 1980—Jan. 15.25 Oct. 13.79 19 12.50 26 . 17.75 Feb. 15.63 Nov. 16.06 26 13.00 Dec 2 , 18.50 Mar. 18.31 Apr. 19.77 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 4-9, 1980 Size of loan (in thousands of dollars) Item sizes 1,000 1-24 25-49 50-99 100-499 500-999 and over SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS 1 Amount of loans (thousands of dollars) 13,492,779 696,920 501,851 716,033 2,074,691 703,435 8,799,849 2 Number of loans 139,530 98,586 15,075 11,249 11,675 1,133 1,812 3 Weighted-average maturity (months) 2.2 3.0 3.1 3.4 3.5 3.4 1.5 4 Weighted-average interest rate (percent per annum) . 11.56 13.65 13.53 13.00 12.49 12.01 10.92 5 Interquartile range1 10.75-12.42 12.42-14.84 12.42-14.66 12.07-13.72 11.60-13.10 11.25-12.41 10.12-11.50 Percentage of amount of loans 6 With floating rate 35.4 22.1 30.9 42.2 39.2 68.5 32.6 7 Made under commitment 46.2 24.7 30.3 35.3 44.6 67.6 48.4 8 With no stated maturity 22.8 14.3 8.5 31.5 20.0 33.0 23.5 LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS 9 Amount of loans (thousands of dollars) 1,806,322 325,437 219,163 113,059 1,148,663 10 Number of loans 24,017 22,299 1,248 174 297 11 Weighted-average maturity (months) 45.9 33.2 55.1 43.9 47.9 12 Weighted-average interest rate (percent per annum) . 12.06 14.28 12.57 12.26 11.31 13 Interquartile range1 11.00-12.99 13.00-15.00 11.92-13.24 11.25-13.10 11.00-12.00 Percentage of amount of loans 14 With floating rate 6677..88 20.1 59.9 80.9 81.5 15 Made under commitment 72.5 33.7 64.6 75.6 84.7 CONSTRUCTION AND LAND DEVELOPMENT LOANS 16 Amount of loans (thousands of dollars) 1,065,180 161,684 144,638 166,745 318,897 273,217 17 Number of loans 23,363 15,447 3,878 2,608 1,261 169 18 Weighted-average maturity (months) 8.0 15.2 3.4 4.9 5.2 12.0 19 Weighted-average interest rate (percent per annum) . 13.16 14.87 13.15 13.13 12.74 12.66 20 Interquartile range1 12.62-13.50 12.68-16.99 12.30-13.28 12.56-13.65 12.56-13.00 12.07-13.00 Percentage of amount of loans 21 With floating rate 40.1 16.8 14.2 19.4 34.2 87.3 22 Secured by real estate 93.9 78.8 98.5 97.9 96.4 95.0 23 Made under commitment 69.8 36.8 75.1 53.2 88.8 74.6 24 With no stated maturity 12.9 8.4 2.5 21.4 6.4 23.5 Type of construction 25 1- to 4-family 44.2 75.5 81.1 69.7 21.7 16.7 26 Multifamily 8.9 8.0 12.1 1.9 7.4 13.7 27 Nonresidential 47.0 16.5 6.8 28.4 70.9 69.6 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) 948,371 145,747 182,288 160,300 130,001 148,329 181,706 29 Number of loans 60,078 38,800 12,884 4,751 2,067 1,150 425 30 Weighted-average maturity (months) 7.8 6.1 7.1 6.9 12.1 5.6 9.6 31 Weighted-average interest rate (percent per annum) . 13.51 13.50 13.44 13.57 13.54 13.77 13.28 32 Interquartile range1 12.89-14.12 12.68-14.49 12.96-13.96 12.89-14.49 12.89-14.49 13.42-14.28 12.68-13.50 By purpose of loan 33 Feeder livestock 13.45 13.73 13.31 13.72 13.39 13.63 12.92 34 Other livestock 13.74 13.48 13.38 13.68 14.67 14.26 13.37 35 Other current operating expenses 13.65 13.40 13.50 13.79 13.58 13.88 14.14 36 Farm machinery and equipment 13.31 13.94 13.16 13.21 13.06 13.52 12.24 37 Other 13.25 13.46 13.68 12.39 13.35 13.62 12.98 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. These data of loans made. have been updated since the issuance of the E.2. 2. Fewer than 10 sample loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets A25 1.35 INTEREST RATES Money and Capital Markets Averages, percent per annum 1980 1980, week ending Instrument 1977 1978 1979 Aug. Sept. Oct. Nov. Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Money market rates 1 Federal funds1 5.54 7.94 11.20 9.61 10.87 12.81 15.59 13.17 13.99 14.65 15.22 17.43 Commercial paper2'3 2 1-month 5.42 7.76 10.86 9.48 10.82 12.59 15.23 13.12 14.29 14.59 15.41 16.60 3 3-month 5.54 7.94 10.97 9.57 10.97 12.52 15.18 13.33 14.47 14.52 15.37 16.33 4 6-month 5.60 7.99 10.91 9.61 11.04 12.32 14.73 13.28 14.34 14.12 14.91 15.48 Finance paper, directly placed2-3 5 1-month 5.38 7.73 10.78 9.30 10.62 12.32 14.87 12.88 14.06 14.30 14.94 16.15 6 3-month 5.49 7.80 10.47 9.08 10.28 11.24 13.14 11.65 12.49 12.96 13.32 13.76 7 6-month 5.50 7.78 10.25 9.08 10.29 11.15 13.07 11.52 12.38 12.93 13.28 13.63 8 Prime bankers acceptances, 90-day3-4 ... 5.59 8.11 11.04 9.85 11.13 12.69 15.34 13.71 14.68 14.64 15.46 16.58 Certificates of deposit, secondary market5 9 1-month 5.48 7.88 11.03 9.62 10.89 12.69 15.39 13.34 14.50 14.80 15.44 16.79 10 3-month 5.64 8.22 11.22 9.91 11.29 12.94 15.68 13.98 14.98 14.95 15.79 16.97 11 6-month 5.92 8.61 11.44 10.29 11.73 12.99 15.36 14.09 15.02 14.70 15.52 16.15 12 Eurodollar deposits, 3-month6 6.05 8.74 11.96 10.82 12.07 13.55 16.46 14.31 15.41 16.39 15.85 16.98 U.S. Treasury bills3-7 Secondary market 13 3-month 5.27 7.19 10.07 9.13 10.27 11.62 13.73 12.51 13.28 13.29 13.98 14.31 14 6-month 5.53 7.58 10.06 9.41 10.57 11.63 13.50 12.59 13.18 13.03 13.71 14.05 15 1-year 5.71 7.74 9.75 9.39 10.48 11.30 12.66 12.16 12.47 12.21 12.74 13.22 Auction average8 16 3-month 5.265 7.221 10.041 9.259 10.321 11.580 13.888 12.331 13.344 13.514 14.309 14.384 17 6-month 5.510 7.572 10.017 9.443 10.546 11.566 13.612 12.284 13.269 13.231 13.917 14.030 Capital market rates U.S. TREASURY NOTES AND BONDS Constant maturities9 18 1-year 6.09 8.34 10.67 10.24 11.52 12.49 14.15 13.51 13.97 13.61 14.20 14.81 19 2-year 6.45 8.34 10.12 10.53 11.57 12.09 13.51 12.95 13.39 13.07 13.58 14.00 20 2Vi-year10 13.30 13.50 21 3-year 6.69 ' 8.29 ' 9.71 10.63 11.57 12.01 13.31 12.82 13.27 12.99 13.33 13.62 22 5-year 6.99 8.32 9.52 10.84 11.62 11.86 12.83 12.62 12.94 12.59 12.77 13.06 23 7-year 7.23 8.36 9.48 10.95 11.57 11.79 12.71 12.45 12.76 12.50 12.74 12.82 24 10-year 7.42 8.41 9.44 11.10 11.51 11.75 12.68 12.37 12.69 12.63 12.69 12.72 25 20-year 7.67 8.48 9.33 11.07 11.47 11.75 12.44 12.33 12.56 12.45 12.38 12.37 2266 30-year 88..4499 99..2299 1111..0000 1111..3344 1111..5599 1122..3377 1122..1166 1122..4444 1122..4411 1122..3333 1122..3300 Composite11 27 3 to 5 years12 6.85 8.30 9.58 28 Over 10 years (long-term) 7.06 7.89 8.74 10.53 10.94 11.20 11.83 11.74 11.94 11.82 11.77 11.80 STATE AND LOCAL NOTES AND BONDS Moody's series13 29 Aaa 5.20 5.52 5.92 8.03 8.36 8.38 8.71 8.40 9.05 8.60 8.60 8.60 30 Baa 6.12 6.27 6.73 9.25 9.38 9.41 9.74 9.63 9.75 9.60 9.60 10.00 31 Bond Buyer series14 5.68 6.03 6.52 8.67 8.94 9.11 9.56 9.45 9.64 9.50 9.50 9.61 CORPORATE BONDS 32 Seasoned issues, all industries15 8.43 9.07 10.12 12.33 12.80 13.07 13.64 13.35 13.56 13.62 13.62 13.76 By rating group 33 Aaa 8.02 8.73 9.63 11.64 12.02 12.31 12.97 12.72 12.96 12.93 12.96 13.03 34 Aa 8.24 8.92 9.94 12.09 12.52 12.68 13.34 12.99 13.28 13.34 13.30 13.44 35 A 8.49 9.12 10.20 12.44 12.97 13.05 13.59 13.17 13.42 13.59 13.59 13.76 36 Baa 8.97 9.45 10.69 13.15 13.70 14.23 14.64 14.49 14.56 14.61 14.61 14.79 Aaa utility bonds16 37 New issue 8.19 8.96 10.03 12.32 12.74 13.18 13.85 13.92 13.85 38 Recently offered issues 8.19 8.97 10.02 12.31 12.72 13.13 13.91 13.79 13.97 13.92 13.91 14.02 MEMO: Dividend/price ratio17 39 Preferred stocks 7.60 8.25 9.07 10.04 10.14 10.64 11.33? 11.12 11.07 11.48 11.36 11.40 40 Common stocks 4.56 5.28 5.46 5.06 4.90 4.80 4.65? 4.91 4.79 4.68 4.54 4.60 1. Weekly figures are seven-day averages of daily effective rates for the week 2, 1980. Each weekly figure shown is calculated on a biweekly basis and is the ending Wednesday; the daily effective rate is an average of the rates on a given average of five business days ending on the Monday following the calendar week. day weighted by the volume of transactions at these rates. Beginning June 2, the biweekly rate is used to determine the maximum interest 2. Beginning November 1977, unweighted average of offering rates quoted by rate payable in the following two-week period on small saver certificates. (See table at least five dealers (in the case of commercial paper), or finance companies (in 1.16.) the case of finance paper). Previously, most representative rate quoted by those 11. Unweighted averages for all outstanding notes and bonds in maturity ranges dealers and finance companies. Before November 1979, maturities for data shown shown, based on daily closing bid prices. "Long-term" includes all bonds neither are 30-59 days, 90-119 days, and 120-179 days for commercial paper; and 30-59 due nor callable in less than 10 years, including several very low yielding "flower" days, 90-119 days, and 150-179 days for finance paper. bonds. 1 Yields are quoted on a bank-discount basis. 12. The three- to five-year series has been discontinued. 4. Average of the midpoint of the range of daily dealer closing rates offered for 13. General obligations only, based on figures for Thursday, from Moody's domestic issues. Investors Service. 5. Five-day average of rates quoted by five dealers (three-month series was 14. Twenty issues of mixed quality. previously a seven-day average). 15. Averages of daily figures from Moody's Investors Service. 6. Averages of daily quotations for the week ending Wednesday. 16. Compilation of the Board of Governors of the Federal Reserve System. 7. Except for auction averages, yields are computed from daily closing bid prices. Issues included are long-term (20 years or more). New-issue yields are based on 8. Rates are recorded in the week in which bills are issued. quotations on date of offering; those on recently offered issues (included only for 9. Yield on the more actively traded issues adjusted to constant maturities by first 4 weeks after termination of underwriter price restrictions), on Friday closethe U.S. Treasury, based on daily closing bid prices. of-business quotations. Digitized for F1R0.A ESacEh Rm onthly figure is an average of only five business days near the end 17. Standard and Poor's corporate series. Preferred stock ratio based on a sample of the month. The rate for each month was used to determine the maximum interest of ten issues: four public utilities, four industrials, one financial, and one transhttp://fraser.rsattleo upaisyafeblde .oinr gt/h e following month on small saver certificates, until June portation. Common stock ratios on the 500 stocks in the price index. Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • December 1980 1.36 STOCK MARKET Selected Statistics 1980 IInnddiiccaattoorr 11997777 11997788 11997799 May June July Aug. Sept. Oct. Nov. Prices and trading (averages of daily figures) CCoommmmoonn ssttoocckk pprriicceess 11 NNeeww YYoorrkk SSttoocckk EExxcchhaannggee ((DDeecc.. 3311,, 11996655 == 5500)) .. 53.67 53.76 55.67 61.38 65.43 68.56 70.87 73.12 75.17 78.15 22 IInndduussttrriiaall 57.84 58.30 61.82 69.39 74.47 78.67 82.15 84.92 88.00 92.32 33 TTrraannssppoorrttaattiioonn 41.07 43.25 45.20 51.07 54.04 59.14 62.48 65.89 70.76 77.22 44 UUttiilliittyy 40.91 39.23 36.46 37.31 38.50 38.77 38.18 38.77 38.44 38.35 55 FFiinnaannccee 55.23 56.74 58.65 61.47 65.16 66.76 67.22 69.33 68.29 67.21 66 SSttaannddaarrdd && PPoooorr''ss CCoorrppoorraattiioonn ((11994411^^33 == 1100))11 .. 98.18 96.11 98.34 107.69 114.55 119.83 123.50 126.49 130.22 135.65 77 AAmmeerriiccaann SSttoocckk EExxcchhaannggee ((AAuugg.. 3311,, 11997733 == 110000)) 116.18 144.56 186.56 258.45 286.21 310.29 321.87 337.01 350.08 349.97 VVoolluummee ooff ttrraaddiinngg ((tthhoouussaannddss ooff sshhaarreess)) 88 NNeeww YYoorrkk SSttoocckk EExxcchhaannggee 20,936 28,591 32,233 36,425 39,508' 46,444 45,984 50,397 44,860 54,895 99 AAmmeerriiccaann SSttoocckk EExxcchhaannggee 2,514 3,622 4,182 3,799 5,240 6,195 6,452 7,880 7,087 7,852 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers/dealers2 9,993 11,035 11,619 11,441 11,370 11,522 12,007 12,731 13,293 4 11 Margin stock3 9,740 10,830 11,450 11,270 11,200 11,320 11,800 12,520 13,080 I 12 Convertible bonds 250 205 167 167 166 198 204 208 211 1 13 Subscription issues 3 1 2 4 4 4 3 3 2 n.a. Free credit balances at brokers4 1 14 Margin-account 640 835 1,105 1,270 1,345 1,665' 1,695 1,850 5,500 15 Cash-account 2,060 2,510 4,060 4,750 4,790 4,905' 4,925 5,680 1,950 t Margin-account debt at brokers (percentage distribution, end of period) 16 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 By equity class (in percent)5 17 Under 40 18.0 33.0 16.0 19.0 17.0 12.0 11.0 13.0 13.0 18 40-49 36.0 28.0 29.0 32.0 31.0 27.0 25.0 28.0 29.0 19 50-59 23.0 18.0 27.0 22.0 23.0 28.0 30.0 26.0 25.0 n.a. 20 60-69 11.0 10.0 14.0 12.0 13.0 16.0 16.0 15.0 15.0 1 21 70-79 6.0 6.0 8.0 7.0 8.0 9.0 10.0 10.0 10.0 22 80 or more 5.0 5.0 7.0 7.0 7.0 8.0 8.0 8.0 8.0 1 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6 9,910 13,092 16,150 16,543 16,920 17,886 18,350 19,283 19,929 f Distribution by equity status (percent) 1 24 Net credit status 43.4 41.3 44.2 45.8 47.6 48.7 48.2 49.0 46.8 n.a. Debt status, equity of 1 25 60 percent or more 44.9 45.1 47.0 43.6 43.4 43.8 44.6 43.4 46.2 1 26 Less than 60 percent 11.7 13.6 8.8 10.6 9.0 8.0 7.0 7.6 7.0 t 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 prorelated 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 All 1.37 SAVINGS INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1979 1980 Account 1977 1978 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.P Savings and loan associations 1 Assets 459,241 523,542 579,307 582,252 585,685 589,498 591,108 593,321 594,792 597,023 603,720 609,764 618,201 2 Mortgages 381,163 432,808 475,797 476,448 477,303 479,078 480,165 480,092 481,184 482,985 487,198 492,068 496,560 3 Cash and investment securities1 39,150 44,884 46,541 48,473 50,168 50,899 50,576 52,670 52,613 52,370 53,545 53,647 56,427 4 Other 38,928 45,850 56,969 57,331 58,214 59,521 60,367 60,559 60,995 61,668 62,977 64,049 65,214 5 Liabilities and net worth 459,241 523,542 579,307 582,252 585,685 589,498 591,108 593,321 594,792 597,023 603,720 609,764 618,201 6 Savings capital 386,800 430,953 470,171 472,236 473,862 478,265 478,591 481,613 486,900 489,123 491,638 497,244 501,096 7 Borrowed money 27,840 42,907 55,375 55,233 55,276 57,346 57,407 55,353 54,950 53,615 55,552 58,578 60,970 8 FHLBB 19,945 31,990 40,441 40,364 40,337 42,413 42,724 41,529 40,613 39,882 41,005 42,547 44,367 9 Other 7,895 10,917 14,934 14,869 14,939 14,933 14,683 13,824 14,337 13,733 14,547 16,031 16,603 10 Loans in process 9,911 10,721 9,511 8,735 8,269 8,079 7,660 7,126 6,974 7,055 7,483 8,184 8 ,604 11 Other 9,506 9,904 11,684 13,315 15,385 12,683 14,260 16,246 13,056 14,455 16,291 12,877 14,520 12 Net worth2 25,184 29,057 32,566 32,733 32,893 33,125 33,190 32,983 32,912 32,775 32,756 32,881 33,011 13 MEMO: Mortgage loan commitments outstanding3 19,875 18,911 16,007 15,559 16,744 15,844 14,193 13,929 15,368 18,020 20,280 20,313 18,976 Mutual savings banks4 14 Assets 14,287 158,174 163,405 163,252 164,270 165,107 165,366 166,340 166,982' 167,959' 168,752' 169,409 Loans 15 Mortgage 88,195 95,157 98,908 98,940 99,220 99,151 99,045 99,163 99,176' 99,301' 99,289' 99,306 16 Other 6,210 7,195 9,253 9,804 10,044 10,131 10,187 10,543 11,148' 11,390' 11,122' 11,415 Securities 17 U.S. government5 5,895 4,959 7,658 7,387 7,436 7,629 7,548 7,527 7,483' 7,796' 8,079' 8,434 18 State and local government .. 2,828 3,333 2,930 2,887 2,853 2,824 2,791 2,727 2,706' 2,702' 2,709' 2,728 19 Corporate and other6 37,918 39,732 37,086 37,114 37,223 37,493 37,801 38,246 38,276' 38,863' 39,327' 39,609 20 Cash 2,401 3,665 3,156 2,703 3,012 3,361 3,405 3,588 3,561' 3,260' 3,456' 3,153 21 Other assets 3,839 4,131 4,412 4,417 4,481 4,518 4,588 4,547 4,631' 4,648' 4,770' 4,764 22 Liabilities 147,287 158,174 163,405 163,252 164,270 165,107 165,366 166,340 166,982' 167,959' 168,752' 169,409 n. a. 23 Deposits 134,017 142,701 146,006 145,044 145,171 146,328 145,821 146,637 148,606' 149,580' 150,187' 151,765 24 Regular7 132,744 141,170 144,070 143,143 143,284 144,214 143,765 144,646 146,416' 147,408' 148,018' 149,395 25 Ordinary savings 78,005 71,816 61,123 59,252 58,234 56,948 54,247 54,669 56,388' 57,737' 58,191' 58,658 26 Time and other 54,739 69,354 82,947 83,891 85,050 87,266 89,517 89,977 90,028' 89,671' 89,827' 90,736 27 Other 1,272 1,531 1,936 1,901 1,887 2,115 2,056 1,990 2,190' 2,172' 2,169' 2,370 28 Other liabilities 3,292 4,565 5,873 6,665 7,485 7,135 7,916 8,161 6,898' 6,964' 7,211' 6,299 29 General reserve accounts 9,978 10,907 11,525 11,544 11,615 11,643 11,629 11,542 11,478' 11,416' 11,353' 11,344 30 MEMO: Mortgage loan commitments outstanding8 4,066 4,400 3,182 2,919 2,618 2,397 2,097 1,883 1,898' 1,939' 1,849' 1,883 Life insurance companies 31 Assets 351,722 389,924 432,282 436,226 438,638 439,733 442,932 447,020 450,858 455,759 459,362 464,483 Securities 32 Government 19,553 20,009 0,338 20,378 20,438 20,545 20,470 20,529 20,395 20,736 20,833 20,853 33 United States9 5,315 4,822 4,888 4,878 4,898 5,004 5,059 5,107 4,990 5,325 5,386 5,361 34 State and local 6,051 6,402 6,428 6,433 6,488 6,454 6,351 6,352 6,349 6,361 6,421 6,474 35 Foreign10 8,187 8,785 9,022 9,067 9,052 9,087 9,060 9,070 9,056 9,050 9,026 9,018 36 Business 175,654 198,105 218,128 222,332 223,423 221,214 222,175 223,556 224,874 228,645 230,477 233,652 37 Bonds 141,891 162,587 178,371 181,820 182,521 182,536 182,750 183,356 184,329 186,385 187,839 189,586 n. a. 38 Stocks 33,763 35,518 39,757 40,512 40,902 38,678 39,425 40,200 40,545 42,260 42,638 44,066 39 Mortgages 96,848 106,167 118,421 119,885 120,926 122,314 123,587 124,563 125,455 126,461 127,357 128,089 40 Real estate 11,060 11,764 13,007 13,083 13,201 13,512 13,696 13,981 14,085 14,164 14,184 14,460 41 Policy loans 27,556 30,146 34,825 35,302 35,839 36,901 38,166 38,890 39,354 39,649 39,925 40,258 42 Other assets 21,051 23,733 27,563 25,246 24,811 25,247 24,838 25,501 26,695 26,104 26,586 27,171 Credit unions 43 Total assets/liabilities and capital 53,755 62,348 65,854 64,506 64,857 65,678 65,190 66,103 68,102 68,429 69,553 70,515 70,702 44 Federal 29,564 34,760 35,934 35,228 35,425 36,091 35,834 36,341 37,555 37,573 38,168 39,219 39,155 45 State 24,191 27,588 29,920 29,278 29,432 29,587 29,356 29,762 30,547 30,856 31,385 31,296 31,547 46 Loans outstanding 41,845 50,269 53,125 52,089 51,626 51,337 50,344 49,469 48,172 47,829 47,884 47,211 47,221 47 Federal 22,634 27,687 28,698 28,053 27,783 27,685 27,119 26,550 25,773 25,435 25,401 25,381 25,288 48 State 19,211 22,582 24,426 24,036 23,843 23,652 23,225 22,919 22,399 22,394 22,483 21,830 21,933 49 Savings 46,516 53,517 56,232 55,447 55,790 56,743 56,338 57,197 59,310 60,574 61,403 63,728 63,957 50 Federal (shares) 25,576 29,802 35,530 30,040 32,256 30,948 30,851 31,403 32,764 33,472 33,964 35,961 36,030 51 State (shares and deposits) ... 20,940 23,715 25,702 25,407 25,534 25,795 25,487 25,794 26,546 27,102 27,439 27,767 27,927 For notes see bottom of page A28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic NonfinancialS tatistics • December 1980 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFiissccaall FFiissccaall FFiissccaall Type of account or operation yyeeaarr yyeeaarr yyeeaarr 1979 1980 1980 11997788 11997799 11998800 HI H2 HI Aug. Sept. Oct. U.S. budget 1 Receipts' 401,997 465,940 520,050 246.574 233,952 270,864 44,259 53,544 38,923 2 Outlays1 450,836 493,673 579,011 245,616 263,044 289,899 50,755 47,289 56,304 3 Surplus, or deficit( -) -48,839 -27,733 -58,961 958 -29,093 -19,035 -6,496 6,255 -17,382 4 Trust funds 12,693 18,335 8,791 4,041 9,679 4,383 2,227 8,286 -7,452 5 Federal funds2 -61,532 -46,069 -67,752 -3,083 -38,773 -23,418 -8,723 -2,031 -9,929 Off-budget entities (surplus, or deficit 6 Federal Financing Bank outlays -10,661 -13,261 -14,549 -7,712 -5,909 -7,735 -929 -1,861 -1,157 7 Other3 334 832 330 -447 805 -528 -922 41 1,403 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-) -59,166 -40,162 -73,180 -7,201 -34,197 -27,298 -8,347 4,435 -17,136 Source or financing 9 Borrowing from the public 59,106 33,641 70,515 6,039 31,320 24,435 11,111 6,260 4,758 10 Cash and monetary assets (decrease, or increase (- ))* -3,023 -408 -355 -8,878 3,059 -3,482 -2,464 -9,692 8,488 11 Other5 3,083 6,929 3,020 10,040 -182 6,345 -300 -1,002 3,890 MEMO: 12 Treasury operating balance (level, end of period) 22,444 24,176 20,990 17,485 15,924 14,092 12,494 20,990 12,678 13 Federal Reserve Banks 16,647 6,489 4,102 3,290 4,075 3,199 2,742 4,102 1,864 14 Tax and loan accounts 5,797 17,687 16,888 14,195 11,849 10,893 9,752 16,888 10,814 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 outlays liability (including checks outstanding) and asset accounts; seignorage; increment retroactive to January 1976. on gold; net gain/loss for U.S. currency valuation adjustment; net gain/loss for IMF 2. Half-year figures are calculated as a residual (total surplus/deficit less trust valuation adjustment; and profit on the sale of gold. fund surplus/deficit). 3. Includes Pension Benefit Guaranty Corporation; Postal Service Fund; Rural SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. Electrification 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 1.37 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 Inassets." 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 associations 3. Excludes figures for loans in process, which are shown as a liability. 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. Beginning April 1979, includes obligations of U.S. government agencies. Life insurance companies: Estimates of the American Council of Life Insurance Before 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 A29 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1979 1980 1980 111999777888 111999777999 111999888000 HI H2 HI Aug. Sept. Oct. RECEIPTS 1 All sources1 401,997 465,940 520,050 246,574 233,952 270,864 44,259 53,544 38,923 2 Individual income taxes, net 180,988 217,841 244,069 111,603 115,488 119,988 19,527 26,936 21,150 3 Withheld 165,215 195,295 223,763 98,683 105,764 110,394 19,220 18,731 20,237 4 Presidential Election Campaign Fund . 39 36 39 32 3 34 0 0 0 5 Nonwithheld 47,804 56,215 63,746 44,116 12,355 49,707 1,103 8,632 1,454 6 Refunds1 32,070 33,705 43,479 31,228 2,634 40,147 796 429 540 Corporation income taxes 7 Gross receipts 65,380 71,448 72,380 42,427 29,169 43,434 1,848 9,531 2,598 8 Refunds 55,,442288 5,771 77,,779900 22,,888899 33,,330066 44,,006644 481 647 1,314 9 Social insurance taxes and contributions, net 112233,,441100 141,591 160,747 75,609 7711,,003311 86,597 18,546 12,860 11,283 10 Payroll employment taxes and contributions2 99,626 115,041 133,042 59,298 6600,,556622 69,077 1155,,551122 11,520 9,645 11 Self-employment taxes and contributions3 4,267 5,034 5,723 4,616 417 5,535 0 419 0 12 Unemployment insurance 13,850 15,387 15,336 8,623 6,899 8,690 2,423 299 1,068 13 Other net receipts4 5,668 6,130 6,646 3,072 3,149 3,294 612 622 570 14 Excise taxes 18,376 18,745 24,329 8,984 9,675 11,383 2,687 2,734 2,778 15 Customs deposits 6,573 7,439 7,174 3,682 3,741 3,443 617 605 654 16 Estate and gift taxes 5,285 5,411 6,389 2,657 2,900 3,091 595 611 610 17 Miscellaneous receipts5 7,413 9,237 12,741 4,501 5,254 6,993 918 914 1,163 OUTLAYS 18 All types1 450,836 493,673 579,011 245,616 263,044 289,899 50,755 47,289 5,630 19 National defense 105,186 117,681 135,880 57,643 62,002 69,132 11,698 11,636 13,040 20 International affairs 5,922 6,091 10,476 3,538 4,617 4,602 546 532 984 21 General science, space, and technology .. 4,742 5,041 5,999 2,461 3,299 3,150 556 391 588 22 Energy 5,861 6,856 6,339 4,417 3,281 3,126 645 630 631 23 Natural resources and environment 10,925 12,091 14,142 5,672 7,350 6,668 1,275 1,314 1,406 24 Agriculture 7,731 6,238 4,951 3,020 1,709 3,193 -131 -184 221 25 Commerce and housing credit 3,324 2,565 7,537 60 3,002 3,878 88 -26 1,626 26 Transportation 15,445 17,459 20,840 7,688 10,298 9,582 1,778 2,077 2,066 27 Community and regional development ... 11,039 9,482 10,182 4,499 4,855 5,302 941 1,128 989 28 Education, training, employment, social services 26,463 29,685 31,397 14,467 14,579 16,686 2,560 2,595 2,947 29 Health 43,676 49,614 58,165 24,860 26,492 29,299 4,897 5,284 5,432 30 Income security1 146,212 160,198 192,160 81,173 86,007 94,600 17,999 17,487 18,361 31 Veterans benefits and services 18,974 19,928 21,167 10,127 10,113 9,758 2,659 747 2,859 32 Administration of justice 3,802 4,153 4,553 2,096 2,174 2,291 353 350 466 33 General government 3,737 4,153 4,878 2,291 2,103 2,422 642 428 39 34 General-purpose fiscal assistance 9,601 8,372 8,268 3,890 4,286 3,940 46 150 1,929 35 Interest6 43,966 52,556 64,571 26,934 29,045 32,658 5,063 4,752 5,349 36 Undistributed offsetting receipts6-7 -15,772 -18,489 -22,494 -8,999 -12,164 -10,387 -860 -2,000 -2,630 1. Effective June 1978, earned income credit payments in excess of an indi- 6. Effective September 1976, "Interest" and "Undistributed offsetting receipts" vidual's tax liability, formerly treated as income tax refunds, are classified as reflect the accounting conversion from an accrual basis to a cash basis for the outlays retroactive to January 1976. interest on special issues for U.S. government accounts. 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

A30 Domestic Financial Statistics • December 1980 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1978 1979 1980 IItteemm June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31. Mar. 31 June 30 1 Federal debt outstanding 758.8 780.4 797.7 804.6 812.2 833.8 852.2 870.4 884.4 2 Public debt securities 749.0 771.5 789.2 796.8 804.9 826.5 845.1 863.5 877.6 3 Held by public 587.9 603.6 619.2 630.5 626.4 638.8 658.0 677.1 682.7 4 Held by agencies 161.1 168.0 170.0 166.3 178.5 187.7 187.1 186.3 194.9 5 Agency securities 9.8 8.9 8.5 7.8 7.3 7.2 7.1 7.0 6.8 6 Held by public 8.0 7.4 7.0 6.3 5.9 5.8 5.6 5.5 5.3 7 Held by agencies 1.8 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 8 Debt subject to statutory limit 750.2 772.7 790.3 797.9 806.0 827.6 846.2 864.5 878.7 9 Public debt securities 748.4 770.9 788.6 796.2 804.3 825.9 844.5 862.8 877.0 10 Other debt1 1.8 1.8 1.7 1.7 1.7 1.7 1.7 1.7 1.7 11 MEMO: Statutory debt limit 752.0 798.0 798.0 798.0 830.0 830.0 879.0 879.0 925.0 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. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1980 TTyyppee aanndd hhoollddeerr 11997766 11997777 11997788 11997799 July Aug. Sept. Oct. Nov. 1 Total gross public debt 653.5 718.9 789.2 845.1 881.7 893.4 907.7 908.2 913.8 By type 2 Interest-bearing debt 652.5 715.2 782.4 844.0 880.4 888.7 906.4 906.9 909.4 3 Marketable 363.2 459.9 487.5 530.7 576.1 583.4 594.5 599.4 605.4 4 Bills 164.0 161.1 161.7 172.6 191.5 199.3 199.8 202.3 208.7 5 Notes 216.7 251.8 265.8 283.4 302.6 300.3 310.9 311.9 311.1 6 Bonds 40.6 47.0 60.0 74.7 82.0 83.9 83.8 85.2 85.5 7 Nonmarketable1 231.2 255.3 294.8 313.2 304.3 305.3 311.9 307.5 304.0 8 Convertible bonds2 2.3 2.2 2.2 2.2 — — 9 State and local government series 4.5 13.9 24.3 24.6 23.5 23.6 23.6 23.9 24.0 10 Foreign issues3 22.3 22.2 29.6 28.8 25.8 25.8 25.2 24.8 24.5 11 Government 22.3 22.2 28.0 23.6 19.3 19.4 18.7 18.4 18.1 12 Public 0 0 1.6 5.3 6.4 6.4 6.4 6.4 6.4 13 Savings bonds and notes 72.3 77.0 80.9 79.9 73.3 73.2 73.0 73.0 72.8 14 Government account series4 129.7 139.8 157.5 177.5 181.5 182.4 189.8 185.7 182.4 15 Non-interest-bearing debt 1.1 3.7 6.8 1.2 1.3 4.7 1.3 1.3' 4.4 By holder5 16 U.S. government agencies and trust funds 147.1 154.8 170.0 187.1 189.2 189.8 197.7 17 Federal Reserve Banks 97.0 102.5 109.6 117.5 119.6 119.3 120.7 18 Private investors 409.5 461.3 508.6 540.5 572.9 583.8 589.2 19 Commercial banks 103.8 101.4 93.1 97.0 94.4 98.1 100.9 20 Mutual savings banks 5.9 5.9 5.0 4.7 4.7 5.0 5.3 21 Insurance companies 12.7 15.5 14.9 14.4 14.4 14.1 14.4 22 Other companies 27.7 22.7 21.2 23.9 25.3 24.6 25.5 n.a. n. a. 23 State and local governments 41.6 54.8 64.4 67.4 68.9 70.7 73.4 Individuals 24 Savings bonds 72.0 76.7 80.7 79.9 73.3 73.2 73.0 25 Other securities 28.8 28.6 33.3 34.2 47.9 50.9 50.0 26 Foreign and international6 78.1 109.6 137.8 123.8 124.8 125.4' 126.0 27 Other miscellaneous investors7 38.9 46.0 58.2 97.6 119.2 121.8 120.7 1. Includes (not shown separately): Securities issued to the Rural Electrification 6. Consists of the investments of foreign balances and international accounts in Administration, depository bonds, retirement plan bonds, and individual retire- the United States. Beginning with July 1974, the figures exclude non-interest-bearment bonds. ing 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 penbe exchanged (or converted) at the owner's option for 1 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 (line 5). 3. Nonmarketable dollar-denominated and foreign currency-denominated series NOTE. Gross public debt excludes guaranteed agency securities and, beginning held by foreigners. in July 1974, includes Federal Financing Bank security issues. 4. Held almost entirely by U.S. government agencies and trust funds. Data by type of security from Monthly Statement of the Public Debt of the United 5. Data for Federal Reserve Banks and U.S. government agencies and trust States (U.S. Treasury Department); data by holder from Treasury Bulletin. 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 A31 1.42 U.S. GOVERNMENT MARKETABLE SECURITIES Ownership, by maturity Par value; millions of dollars, end of period 1980 1980 Type of holder 1978 1979 11997788 11997799 August Sept. August Sept. All maturities 1 to 5 years 1 All holders 487,546 530,731 583,419 594,506 162,886 164,198 188,841 195,784 2 U.S. government agencies and trust funds 12,695 11,047 10,078 10,078 3,310 2,555 2,255 2,255 3 Federal Reserve Banks 109,616 117,458 119,277 120,711 31,283 28,469 35,823 37,285 4 Private investors 365,235 402,226 454,063 463,717 128,293 133,173 150,764 156,244 5 Commercial banks 68,890 69,076 72,952 75,029 38,390 38,346 43,992 45,390 6 Mutual savings banks 3,499 3,204 3,365 3,605 1,918 1,668 1,669 1,880 7 Insurance companies 11,635 11,496 11,229 11,464 4,664 4,518 4,373 4,417 8 Nonfinancial corporations 8,272 8,433 7,761 8,182 3,635 2,844 2,419 2,370 9 Savings and loan associations 3,835 3,209 3,168 4,021 2,255 1,763 1,908 2,193 10 State and local governments 18,815 15,735 19,376 20,467 3,997 3,487 4,212 4,555 11 All others 250,288 291,072 336,213 340,948 73,433 80,546 92,191 95,439 Total, within 1 year 5 to 10 years 12 All holders 228,516 255,252 275,387 276,529 50,400 50,440 50,326 53,372 13 U.S. government agencies and trust funds 1,488 1,629 1,084 1,084 1,989 871 1,398 1,398 14 Federal Reserve Banks 52,801 63,219 55,360 55,326 14,809 12,977 13,276 13,165 15 Private investors 174,227 190,403 218,977 220,084 33,601 36,592 35,653 38,809 16 Commercial banks 20,608 20,171 20,859 21,308 7,490 8,086 5,632 5,871 17 Mutual savings banks 817 836 964 981 496 459 445 454 18 Insurance companies 1,838 2,016 1,736 1,807 2,899 22,,881155 2,818 2,943 19 Nonfinancial corporations 4,048 4,933 4,141 4,638 369 330088 340 318 20 Savings and loan associations 1,414 1,301 1,128 1,680 89 69 75 82 21 State and local governments 8,194 5,607 7,212 7,236 1,588 1,540 1,770 2,118 22 All others 137,309 155,539 182,937 182,434 20,671 23,314 24,573 27,022 Bills, within 1 year 10 to 20 years 23 All holders 161,747 172,644 199,306 199,832 19,800 27,588 35,524 35,481 24 U.S. government agencies and trust funds 2 0 1 1 3,876 4,520 3,686 3,686 25 Federal Reserve Banks 42,397 45,337 43,600 44,098 2,088 3,272 5,891 5,895 26 Private investors 119,348 127,306 155,705 155,732 13,836 19,796 25,948 25,901 27 Commercial banks 5,707 5,938 7,655 8,168 956 993 1,082 1,129 28 Mutual savings banks 150 262 233 257 143 127 186 185 29 Insurance companies 753 473 461 528 1,460 1,305 1,509 1,495 30 Nonfinancial corporations 12 2,793 1,920 2,363 86 218 412 403 31 Savings and loan associations 262 219 249 802 60 58 44 54 32 State and local governments 5,524 3,100 4,824 4,836 1,420 1,762 3,211 3,559 33 All others 105,161 114,522 140,373 138,779 9,711 15,332 19,503 19,076 Other, within 1 year Over 20 years 34 All holders 66,769 82,608 76,081 76,697 25,944 33,254 33,340 33,340 35 U.S. government agencies and trust funds 1,487 1,629 1,083 1,083 2,031 1,472 1,656 1,656 36 Federal Reserve Banks 10,404 17,882 11,726 11,262 8,635 9,520 8,962 9,005 37 Private investors 54,879 63,097 63,272 64,351 15,278 22,262 22,723 22,680 38 Commercial banks 14,901 14,233 13,204 13,140 1,446 1,470 1,387 1,332 39 Mutual savings banks 667 574 731 724 126 113 102 104 40 Insurance companies 1,084 1,543 1,274 1,280 774 842 794 802 41 Nonfinancial corporations 2,256 2,140 2,231 2,275 135 130 449 454 42 Savings and loan associations 1,152 1,081 879 878 17 19 13 13 43 State and local governments 2,670 2,508 2,388 2,400 3,616 3,339 2,971 2,998 44 All others 32,149 41,017 42,564 43,655 9,164 16,340 17,008 16,978 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) 413 nonfinancial corporations and 479 savings and loan associations, each about Data complete for U.S. government agencies and trust funds and Federal Reserve 50 percent; and (3) 492 state and local governments, about 40 percent. Banks, but data for other groups include only holdings of those institutions that "All others," a residual, includes holdings of all those not reporting in the report. The following figures show, for each category, the number and proportion Treasury Survey, including investor groups not listed separately. reporting as of September 30, 1980: (1) 5,355 commercial banks, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic NonfinancialS tatistics • December 1980 1.43 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1980 1980, week ending Wednesday IItteemm 11997777 11997788 11997799 July Aug. Sept. July 30 Aug. 6 Aug. 13 Aug. 20 Aug. 27 Sept. 3 1 U.S. government securities 10,838 10,285 13,183 15,824 17,892 17,608 15,146 17,448 18,871 18,181 17,289 18,390 By maturity 2 Bills 6,746 6,173 7,915 10,108 10,387 10,789 9,010 10,927 10,104 11,400 9,843 10,475 3 Other within 1 year 237 392 454 348 465 325 360 454 505 550 433 377 4 1-5 years 2,320 1,889 2,417 2,680 3,546 3,377 3,361 3,364 3,242 3,369 4,544 2,813 5 5-10 years 1,148 965 1,121 1,121 1,692 1,611 1,031 1,116 2,452 1,280 979 3,091 6 Over 10 years 388 867 1,276 1,567 1,802 1,506 1,385 1,587 2,569 1,582 1,490 1,634 By type of customer 7 U.S. government securities dealers 1,268 1,135 1,448 1,204 1,333 1,503 1,077 1,198 1,470 1,206 1,541 1,257 8 U.S. government securities brokers 3,709 3,838 5,170 6,513 7,418 7,220 5,840 7,177 7,867 7,668 7,120 7,329 9 Commercial banks 2,294 1,804 1,904 2,032 2,164 2,228 2,155 2,025 2,145 2,213 2,290 2,451 10 All others1 3,567 3,508 4,660 6,074 6,977 6,657 6,074 7,049 7,390 7,095 6,337 7,354 11 Federal agency securities 1,729 1,894 2,723 3,234 2,735 2,666 3,122 3,028 2,577 2,740 2,958 2,456 1. Includes, among others, all other dealers and brokers in commodities and Transactions are market purchases and sales of U.S. government securities dealsecurities, 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. 1.44 U.S. GOVERNMENT SECURITIES DEALERS Positions and Sources of Financing Par value; averages of daily figures, in millions of dollars 1980 1980, week ending Wednesday Item 1977 1978 1979 July Aug. Sept. July 2 July 9 July 16 July 23 July 30 Aug. 6 Positions1 1 U.S. government securities 5,172 2,656 3,223 5,240 5,947 3,338 3,134 4,011 3,957 5,955 7,076 6,230 2 Bills 4,772 2,452 3,813 4,603 5,149 3,753 2,258 3,163 3,743 5,893 5,674 5,381 3 Other within 1 year 99 260 -325 -1,150 -1,336 -1,685 -908 -1,055 -1,209 -1,281 -1,138 -910 4 1-5 years 60 -92 -455 1,074 1,391 620 1,035 890 663 604 2,031 1,739 5 5-10 years 92 40 160 73 218 122 234 227 129 84 -99 -373 6 Over 10 years 149 -4 30 640 526 529 515 786 631 655 609 393 7 Federal agency securities 693 606 1,471 1,182 691 320 1,397 1,454 1,292 1,124 949 845 Financing2 8 All sources 9,877 10,204 16,003 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Commercial banks 9 New York City 1,313 599 1,396 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 Outside New York City 1,987 2,174 2,868 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 11 Corporations3 2,358 2,379 3,373 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 All others 4,158 5,052 4,104 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1. Net 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, trade- repurchase), plus internal funds used by bank dealer departments to finance podate basis, including any such securities that have been sold under agreements to sitions in such securities. Borrowings against securities held under agreeement to repurchase. The maturities of some repurchase agreements are sufficiently long, resell are excluded when the borrowing contract and the agreement to resell are however, to suggest that the securities involved are not available for trading pur- equal in amount and maturity, that is, a matched agreement. poses. 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 A33 1.45 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt outstanding Millions of dollars, end of period 1980 Agency 1976 1977 Jan. Feb. Mar. Apr. May June 1 Federal and federally sponsored agencies1 103,848 112,472 137,063 165,819 167,813 173,216 176,880 179,062 179,353 2 Federal agencies 22,419 22,760 23,488 24,883 25,013 25,583 25,776 25,904 26,667 3 Defense Department2 1,113 983 968 729 719 709 688 679 674 4 Export-Import Bank3-4 8,574 8,671 8,711 9,176 9,144 9,627 9,615 9,597 10,275 5 Federal Housing Administration5 575 581 588 539 546 550 537 531 524 6 Government National Mortgage Association participation certificates6 4,120 3,743 3,141 2,979 2,979 2,979 2,937 2,937 2,877 7 Postal Service7 2,998 2,431 2,364 1,837 1,837 1,837 1,837 1,770 1,770 8 Tennessee Valley Authority 4,935 6,015 7,460 9,182 9,347 9,440 9,695 9,920 10,075 9 United States Railway Association7 104 336 356 441 441 441 467 470 472 10 Federally sponsored agencies1 81,429 89,712 113,575 140,936 142,800 147,633 151,104 153,158 152,686 11 Federal Home Loan Banks 16,811 18,345 27,563 33,122 33,102 35,309 36,352 37,540 36,748 12 Federal Home Loan Mortgage Corporation 1,690 1,686 2,262 2,769 2,764 2,644 2,643 2,642 2,642 13 Federal National Mortgage Association 30,565 31,890 41,080 49,031 50,139 51,614 52,456 52,573 52,389 14 Federal Land Banks 17,127 19,118 20,360 15,106 15,106 15,106 13,940 13,940 13,940 15 Federal Intermediate Credit Banks 10,494 11,174 11,469 2,144 2,144 2,144 2,144 2,144 2,144 16 Banks for Cooperatives 4,330 4,434 4,843 584 584 584 584 584 584 17 Farm Credit Banks1 2,548 5,081 36,584 37,240 38,446 41,039 41,629 42,058 1 1 8 9 S O t t u h d e e r nt Loan Marketing Association8 ''' 410 2 515 2 915 2 1,595 1 1,720 1 1,785 1 1,945 1 2,105 1 2,180 1 MEMO: 20 Federal Financing Bank debt7'9 28,711 38,580 51,298 68,294 69,268 71,885 Lending to federal and federally sponsored agencies 21 Export-Import Bank4 5,208 5,834 6,898 8,353 8,353 8,849 8,849 8,849 9,558 22 Postal Service7 2,748 2,181 2,114 1,587 1,587 1,587 1,587 1,520 1,520 23 Student Loan Marketing Association8 410 515 915 1,595 1,720 1,785 1,945 2,105 2,180 24 Tennessee Valley Authority 3,110 4,190 5,635 7,457 7,622 7,715 7,970 8,195 8,350 25 United States Railway Association7 / 104 336 356 441 441 441 467 470 472 Other Lending10 26 Farmers Home Administration 10,750 16,095 23,825 32,145 32,565 33,410 34,755 35,745 35,745 27 Rural Electrification Administration 1,415 2,647 4,604 6,701 6,874 7,039 7,155 7,631 7,942 28 Other 4,966 6,782 6,951 10,015 10,106 11,059 11,281 11,494 11,641 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 Asconsolidated 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 parcurities 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

A34 Domestic Nonfinancial Statistics • December 1980 1.46 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1980 TTyyppee ooff ii oo ss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11997777 11997788 11997799 Mar. Apr. May June July Aug. 1 All issues, new and refunding1 46,769 48,607 43,490 2,385 4,833 4,570 5,960 4,692 3,792 Type of issue 2 General obligation 18,042 17,854 12,109 731 1,662 1,534 1,886 1,368 787 3 Revenue 28,655 30,658 31,256 1,648 3,170 33,,003322 44,,007711 33,,331199 22,,999955 4 Housing Assistance Administration2 5 U.S. government loans 72 95 125 6 1 4 3 5 10 Type of issuer 6 State 6,354 6,632 4,314 393 466 749 897 185 304 7 Special district and statutory authority 21,717 24,156 23,434 1,200 2,175 2,276 3,414 3,034 2,200 8 Municipalities, counties, townships, school districts 18,623 17,718 15,617 786 2,192 1,539 1,647 1,468 1,278 9 Issues for new capital, total 36,189 37,629 41,505 2,379 4,704 4,501 5,886 4,327 3,771 Use of proceeds 10 Education 5,076 5,003 5,130 191 488 297 783 618 263 11 Transportation 2,951 3,460 2,441 156 299 193 329 143 98 12 Utilities and conservation 8,119 9,026 8,594 440 607 688 563 1,221 1,176 13 Social welfare 8,274 10,494 15,968 1,133 2,062 1,801 2,986 1,607 1,421 14 Industrial aid 4,676 3,526 3,836 211 315 484 332 120 340 15 Other purposes 7,093 6,120 5,536 248 933 1,038 893 618 473 1. Par amounts of long-term issues based on date of sale. SOURCE. Public Securities Association. 2. Only bonds sold pursuant to the 1949 Housing Act, which are secured by contract requiring the Housing Assistance Administration to make annual contributions to the local authority. 1.47 NEW SECURITY ISSUES of Corporations Millions of dollars 1980 Type of issue or issuer, 11997777 11997788 11997799 or use Mar. Apr. May June July Aug. Sept. 1 All issues1 53,792 47,230 51,464 4,353 5,677 9,067 9,511 7,736r 5,371 4,922 2 Bonds 42,015 36,872 40,139 2,771 4,775 7,335 8,148 6,376 4,147 2,813 Type of offering 3 Public 24,072 19,815 25,814 1,985 3,828 6,810 7,548 5,354'' 3,843 2,421 4 Private placement 17,943 17,057 14,325 786 947 525 600 1,021 304 392 Industry group 5 Manufacturing 12,204 9,572 9,667 693 1,697 2,400 2,318 2,851r 1,499 509 6 Commercial and miscellaneous 6,234 5,246 3,941 215 457 560 1,629 999r 203 357 7 Transportation 1,996 2,007 3,102 94 173 364 385 329 338 401 8 Public utility 8,262 7,092 8,118 1,423 572 723 1,412 316 971 555 9 Communication 3,063 3,373 4,219 196 598 1,171 209 787 580 517 10 Real estate and financial 10,258 9,586 11,095 152 1,278 2,116 2,195 l,284r 556 472 11 Stocks 11,777 10,358 11,325 1,582 902 1,732 1,363 1,361 1,224 2,109 Type 12 Preferred 3,916 2,832 3,574 525 223 202 382 360 101 392 13 Common 7,861 7,526 7,751 1,057 679 1,530 981 1,001 1,123 1,717 Industry group 14 Manufacturing 1,189 1,241 1,679 598 81 215 127 165' 293 502 15 Commercial and miscellaneous 1,834 1,816 2,623 404 374 512 202 390 238 569 16 Transportation 456 263 255 36 9 27 9 32 54 17 Public utility 5,865 5,140 5,171 408 319 615 494 714 463 633 18 Communication 1,379 264 303 27 53 25 126 46 6 19 Real estate and financial 1,049 1,631 1,293 109 67 338 406 104 152 345 1. Figures, which represent gross proceeds of issues maturing in more than one 1933, employee stock plans, investment companies other than closed-end, intrayear, 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 A35 1.48 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1980 IItteemm 11997788 11997799 Mar. Apr. May June July Aug. Sept. Oct. INVESTMENT COMPANIES1 1 Sales of own shares2 6,645 7,495 723 1,010 1,175 1,772 1,890 1,507 1,405 1,448 2 Redemptions of own shares3 7,231 8,393 892 762 647 775 863 1,019 1,228 1,362 3 Net sales -586 -898 -169 248 528 997 1,027 488 177 86 4 Assets4 44,980 49,493 44,581 47,270 50,539 52,946 54,406 54,941 55,779 56,082 5 Cash position5 4,507 4,983 5,644 5,862 6,209 6,495 5,629 5,619 5,481 5,445 6 Other 40,473 44,510 38,937 41,708 44,330 46,451 48,777 49,322 50,298 50,637 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 reinvestment curities. of capital gains distributions and share issue of conversions from one fund to another in the same group. NOTE. Investment Company Institute data based on reports of members, which 3. Excludes share redemption resulting from conversions from one fund to an- comprise substantially all open-end investment companies registered with the Seother 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. 1.49 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1979 1980 AAccccoouunntt 11997777 11997788 11997799 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1 Profits before tax 177.1 206.0 236.6 233.3 227.9 242.3 243.0 260.4 204.8 222.4 2 Profits tax liability 72.6 84.5 92.5 91.3 88.7 94.0 96.1 102.4 77.6 85.2 3 Profits after tax 104.5 121.5 144.1 142.0 139.2 148.3 146.9 158.0 127.2 137.2 4 Dividends 42.1 47.2 52.7 51.5 52.3 52.8 54.4 56.7 58.6 59.7 5 Undistributed profits 62.4 74.4 91.4 90.5 86.9 95.5 92.5 101.3 68.6 77.5 6 Capital consumption allowances 109.3 119.8 131.0 125.4 130.4 132.8 135.2 ' 137.4 139.3 141.4 7 Net cash flow 171.7 194.1 222.3 215.9 217.3 228.3 227.7 238.7 207.9 218.9 SOURCE. Survey of Current Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • December 1980 1.50 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1979 1980 AAccccoouunntt 11997755 11997766 11997777 11997788 Q1 Q2 Q3 04 Q1 Q2 1 Current assets 759.0 826.8 902.1 1,030.0 1,081.0 1,108.2 1,169.5 1,200.9 1,235.2 1,233.8 2 Cash 82.1 88.2 95.8 104.5 102.7 100.1 103.7 116.1 110.2 111.4 3 U.S. government securities 19.0 23.4 17.6 16.3 17.4 18.6 15.8 15.6 15.1 13.9 4 Notes and accounts receivable 272.1 292.8 324.7 383.8 408.1 421.1 453.0 456.8 471.2 464.2 5 Inventories 315.9 342.4 374.8 426.9 451.4 465.2 489.4 501.7 519.5 525.7 6 Other 69.9 80.1 89.2 98.5 101.4 103.2 107.7 110.8 119.3 118.7 7 Current liabilities 451.6 494.7 549.4 665.5 705.4 724.7 777.8 809.1 838.3 828.1 8 Notes and accounts payable 264.2 281.9 313.2 373.7 391.3 406.4 438.8 456.3 467.9 463.1 9 Other 187.4 212.8 236.2 291.7 314.1 318.3 339.0 352.8 370.4 364.9 10 Net working capital 307.4 332.2 352.7 364.6 375.6 383.5 391.7 391.8 397.0 405.7 11 MEMO: Current ratio 1 1.681 1.672 1.642 1.548 1.532 1.529 1.504 1.484 1.474 1.490 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. 1.51 TOTAL NONFARM BUSINESS EXPENDITURES on New Plant and Equipment Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1979 1980 1981 IInndduussttrryy 11997799 1199880022 Q3 Q4 Q1 Q2 Q3 Q42 Ql2 Q22 1 Total nonfarm business 270.46 294.30 273.15 284.30 291.89 294.36 296.23 294.95 310.59 323.84 Manufacturing 2 Durable goods industries 51.07 58.25 52.13 55.03 58.28 59.38 58.19 57.42 60.23 65.36 3 Nondurable goods industries 47.61 56.65 47.97 51.55 53.49 56.32 58.21 57.96 62.46 65.21 Nonmanufacturing 4 Mining 1111..3388 1133..5500 11.40 11.86 11.89 12.81 13.86 15.25 16.07 18.02 Transportation 5 Railroad 4.03 4.17 4.13 4.24 4.46 4.06 3.98 4.22 3.62 4.07 6 Air 4.01 3.97 3.95 4.55 3.90 4.27 4.06 3.59 4.04 3.41 7 Other 4.31 3.84 4.60 4.41 4.11 3.76 4.18 3.44 3.83 4.13 Public utilities 8 Electric 27.65 27.44 28.71 27.16 28.98 27.91 28.14 25.05 27.99 27.93 9 Gas and other 6.31 7.18 6.35 6.92 7.28 7.12 7.44 6.90 8.79 8.29 10 Trade and services 79.26 82.28 78.86 82.69 82.17 81.07 81.19 84.87 84.09 87.43 11 Communication and other1 34.83 37.02 35.05 35.90 37.34 37.66 36.97 36.26 39.48 40.01 1. "Other" consists of construction; social services membership organization; 2. Anticipated by business, and forestry, fisheries, and agricultural services. 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 A37 1.52 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period 1979 1980 AAccccoouunntt 11997744 11997755 11997766 11997777 11997788 Q2 Q3 Q4 Q1 Q2 ASSETS Accounts receivable, gross 1 Consumer 36.1 36.0 38.6 44.0 52.6 58.7 62.3 65.7 67.7 70.2 2 Business 37.2 39.3 44.7 55.2 63.3 70.1 68.1 70.3 70.6 70.3 3 Total 73.3 75.3 83.4 99.2 116.0 128.8 130.4 136.0 138.4 140.4 4 LESS: Reserves for unearned income and losses ... 9.0 9.4 10.5 12.7 15.6 17.7 18.7 20.0 20.4 21.4 5 Accounts receivable, net 64.2 65.9 72.9 86.5 100.4 111.1 111.7 116.0 118.0 119.0 6 Cash and bank deposits 3.0 2.9 2.6 2.6 3.5 7 Securities .4 1.0 1.1 .9 1.3 24.61 25.8 24.9 23.7 26.1 8 All other 12.0 11.8 12.6 14.3 17.3 9 Total assets 79.6 81.6 89.2 104.3 122.4 135.8 137.4 140.9 141.7 145.1 LIABILITIES 10 Bank loans 9.7 8.0 6.3 5.9 6.5 7.3 7.8 8.5 9.7 10.1 11 Commercial paper 20.7 22.2 23.7 29.6 34.5 41.0 39.2 43.3 40.8 40.7 Debt 12 Short-term, n.e.c 4.9 4.5 5.4 6.2 8.1 8.8 9.1 8.2 7.4 7.9 13 Long-term n.e.c 26.5 27.6 32.3 36.0 43.6 46.0 47.5 46.7 48.9 50.5 14 Other 5.5 6.8 8.1 11.5 12.6 14.4 15.4 14.2 15.7 16.0 15 Capital, surplus, and undivided profits 12.4 12.5 13.4 15.1 17.2 18.2 18.4 19.9 19.2 19.9 16 Total liabilities and capital 79.6 81.6 89.2 104.3 122.4 135.8 137.4 140.9 141.7 145.1 1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined. NOTE. Components may not add to totals due to rounding. 1.53 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted Changes in accounts Extensions Repayments AAAccccccooouuunnntttsss receivable rrreeeccceeeiiivvvaaabbbllleee TTTyyypppeee ooouuu AAA tttsss uuu ttt ggg aaa ... nnn ddd 333 iii 111 nnn ,,, ggg 1980 1980 1980 111999888000111 June July Aug. June July Aug. June July Aug. 1 Total 67,064 -336 -599 -412 14,376 15,187 15,545 14,712 15,786 15,957 2 Retail automotive (commercial vehicles) 13,125 -389 -363 -232 782 772 883 1,171 1,135 1,115 3 Wholesale automotive 9,814 -10 -514 -101 4,316 4,338 4,710 4,326 4,852 4,811 4 Retail paper on business, industrial and farm equipment 20,884 -105 295 155 1,201 1,466 1,601 1,306 1,171 1,446 5 Loans on commercial accounts receivable and factored commercial accounts receivable . 6,700 -235 -194 -358 6,083 6,479 6,349 6,318 6,673 6,707 6 All other business credit 16,541 403 177 124 1,994 2,132 2,002 1,591 1,955 1,878 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • December 1980 1.54 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1980 Item 1976 1977 1978 May June July Aug. Sept. Oct. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 48.4 54.3 62.6 88.0 81.3 89.0 88.6 83.7 84.0 2 Amount of loan (thousands of dollars) 35.9 40.5 45.9 61.3 58.0 63.7 61.5 58.7 61.3 3 Loan/price ratio (percent) 74.2 76.3 75.3 72.4 74.1 73.5 71.2 72.2 75.0 4 Maturity (years) 27.2 27.9 28.0 28.8 28.4 28.9 27.7 27.6 28.2 5 Fees and charges (percent of loan amount)2 1.44 1.33 1.39 2.17 2.21 2.13 2.12 2.10 2.16 6 Contract rate (percent per annum) 8.76 8.80 9.30 13.26 12.24 12.11 11.84 11.95 12.20 Yield (percent per annum) 7 FHLBB series5 8.99 9.01 9.54 13.68 12.66 12.51 12.25 12.35 12.60 8 HUD series4 8.99 8.95 9.68 13.20 12.45 12.45 13.25 13.70 14.10 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 8.82 8.68 9.70 11.99 11.85 12.39 13.54 14.26 14.38 10 GNMA securities6 8.17 8.04 8.98 11.30 11.04 11.53 12.34 12.84 12.91 FNMA auctions7 11 Government-underwritten loans 8.99 8.73 9.77 12.87 12.35 12.65 13.92 14.77 14.94 12 Conventional loans 9.11 8.98 10.01 13.54 12.93 12.80 13.66 14.45 14.70 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 32,904 34,370 43,311 55,328 55,419 55,362 55,361 55,632 56,188 14 FHA-insured 18,916 18,457 21,243 n.a. n.a. n.a. n.a. n.a. n.a. 15 VA-guaranteed 9,212 9,315 10,544 n.a. n.a. n.a. n.a. n.a. n.a. 16 Conventional 4,776 6,597 11,524 17,858 18,001 18,034 18,049 18,074 18,448 Mortgage transactions (during period) 17 Purchases 3,606 4,780 12,303 589 206 100 167 500 771 18 Sales 86 67 5 0 0 0 0 0 0 Mortgage commitments8 19 Contracted (during period) 6,247 9,729 18,960 391 441 734 1,180 1,070 514 20 Outstanding (end of period) 3,398 4,698 9,201 4,064 4,215 4,230 4,545 4,789 4,399 Auction of 4-month commitments to buy Government-underwritten loans 21 Offered9 4,929.8 7,974.1 12,978 608.7 602.5 1,055.6 1,063.3 907.0 427.8 22 Accepted 2,787.2 4,846.2 6,747.2 214.1 266.5 430.3 628.10 538.0 257.7 Conventional loans 23 Offered9 2,595.7 5,675.2 9,933.0 279.7 169.7 228.7 430.4 347.7 107.6 24 Accepted 1,879.2 3,917.8 5,110.9 109.1 76.0 140.9 218.8 209.8 93.9 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)10 25 Total 4,269 3,276 3,064 4,031 4,014 4,151 4,295 4,543 4,727 26 FHA/VA 1,618 1,395 1,243 1,076 1,072 1,066 1,058 1,050 1,044 27 Conventional 2,651 1,881 1,822 2,955 2,942 3,085 3,237 3,492 3,629 Mortgage transactions (during period) 28 Purchases 1,175 3,900 6,524 176 225 440 495 521 398 29 Sales 1,396 4,131 6,211 391 232 288 320 275 187 Mortgage commitments11 30 Contracted (during period) 1,477 5,546 7,451 491 577 708 476 218 222 31 Outstanding (end of period) 333 1,063 1,410 932 1,246 1,386 1,300 934 726 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 mortinstitutional 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 A39 1.55 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1979 1980 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11997777 11997788 11997799 Q3 Q4 Q1 Q2 Q3 1 A11 holders 1,023,505 1,172,754 1,333,550 1,295,935 1,333,550 1,363,787 1,386,344 1,419,155 2 1- to 4-family 656,566 761,843 872,068 846,287 872,068 890,121 904,226 926,161 3 Multifamily 111,841 121,972 130,713 128,270 130,713 132,795 133,646 136,010 4 Commercial 189,274 212,746 238,412 232,208 238,412 243,839 247,085 252,715 5 65,824 76,193 92,357 89,170 92,357 97,032 101,387 104,269 6 Major financial institutions 745,011 848,095 939,487 920,231 939,487 951,898 958,887 977,449 7 Commercial banks1 178,979 213,963 245,998 239,627 245,998 251,198 253,098 257,998 8 1- to 4-family 105,115 126,966 145,975 142,195 145,975 149,061 150,188 153,095 9 Multifamily 9,215 10,912 12,546 12,221 12,546 12,811 12,908 13,158 10 Commercial 56,898 67,056 77,096 75,099 77,096 78,725 79,321 80,857 11 Farm 7,751 9,029 10,381 10,112 10,381 10,601 10,681 10,888 12 Mutual savings banks 88,104 95,157 98,908 97,929 98,908 99,151 99,150 99,306 13 1- to 4-family 57,637 62,252 64,706 64,065 64,706 64,865 64,864 64,966 14 Multifamily 15,304 16,529 17,180 17,010 17,180 17,223 17,223 17,249 15 Commercial 15,110 16,319 16,963 16,795 16,963 17,004 17,004 17,031 16 Farm 53 57 59 59 59 59 59 60 17 Savings and loan associations 381,163 432,808 475,797 468,307 475,797 479,078 481,184 492,068 18 1- to 4-family 310,686 356,114 394,436 387,992 394,436 398,114 398,864 408,908 19 Multifamily 32,513 36,053 37,588 37,277 37,588 37,224 37,340 38,185 20 Commercial 37,964 40,641 43,773 43,038 43,773 43,740 43,980 44,975 21 Life insurance companies 96,765 106,167 118,784 114,368 118,784 122,471 125,455 128,077 22 1- to 4-family 14,727 14,436 16,193 14,884 16,193 16,850 17,796 17,996 23 Multifamily 18,807 19,000 19,274 19,107 19,274 19,590 19,284 19,357 24 Commercial 54,388 62,232 71,137 68,513 71,137 73,618 75,693 77,995 25 Farm 8,843 10,499 12,180 11,864 12,180 12,413 12,682 12,729 26 Federal and related agencies 70,006 81,853 97,293 93,143 97,293 104,133 108,742 110,695 27 Government National Mortgage Association 3,660 3,509 3,852 3,382 3,852 3,919 4,466 4,389 28 1- to 4-family 1,548 877 763 780 763 749 736 719 29 Multifamily 2,112 2,632 3,089 2,602 3,089 3,170 3,730 3,670 30 Farmers Home Administration 1,353 926 1,274 1,383 1,274 2,845 3,375 3,525 31 1- to 4-family 626 288 417 163 417 1,139 1,383 978 32 Multifamily 275 320 71 299 71 408 636 774 33 Commercial 149 101 174 262 174 409 402 370 34 Farm 303 217 612 659 612 889 954 1,403 35 Federal Housing and Veterans Administration 5,212 5,419 5,764 5,672 5,764 5,833 5,894 5,769 36 1- to 4-family 1,627 1,641 1,863 1,795 1,863 1,908 1,953 1,826 37 Multifamily 3,585 3,778 3,901 3,877 3,901 3,925 3,941 3,943 38 Federal National Mortgage Association 34,369 43,311 51,091 49,173 51,091 53,990 55,419 55,632 39 1- to 4-family 28,504 37,579 45,488 43,534 45,488 48,394 49,837 50,071 40 Multifamily 5,865 5,732 5,603 5,639 5,603 5,596 5,582 5,561 41 Federal Land Banks 22,136 25,624 31,277 29,804 31,277 33,311 35,574 36,837 42 1- to 4-family 670 927 1,552 1,374 1,552 1,708 1,893 1,985 43 Farm 21,466 24,697 29,725 28,430 29,725 31,603 33,681 34,852 44 Federal Home Loan Mortgage Corporation 3,276 3,064 4,035 3,729 4,035 4,235 4,014 4,543 45 1- to 4-family 2,738 2,407 3,059 2,850 3,059 3,210 3,037 3,459 46 Multifamily 538 657 976 879 976 1,025 977 1,084 47 Mortgage pools or trusts2 70,289 88,633 119,278 110,648 119,278 124,632 129,647 135,356 48 Government National Mortgage Association 44,896 54,347 76,401 69,357 76,401 80,843 84,282 89,452 49 1- to 4-family 43,555 52,732 74,546 67,535 74,546 78,872 82,208 87,276 50 Multifamily 1,341 1,615 1,855 1,822 1,855 1,971 2,074 2,176 51 Federal Home Loan Mortgage Corporation 6,610 11,892 15,180 14,421 15,180 15,454 16,120 16,659 52 1- to 4-family 5,621 9,657 12,149 11,568 12,149 12,359 12,886 13,318 53 Multifamily 989 2,235 3,031 2,853 3,031 3,095 3,234 3,341 54 Farmers Home Administration 18,783 22,394 27,697 26,870 27,697 28,335 29,245 29,245 55 1- to 4-family 11,397 13,400 14,884 14,972 14,884 14,926 15,224 15,224 56 Multifamily 759 1,116 2,163 1,763 2,163 2,159 2,159 2,159 57 Commercial 2,945 3,560 4,328 4,054 4,328 4,495 4,763 4,763 58 Farm 3,682 4,318 6,322 6,081 6,322 6,755 7,099 7,099 59 Individual and others3 138,199 154,173 177,492 171,913 177,492 183,153 189,068 195,655 60 1- to 4-family 72,115 82,567 96,037 92,580 96,037 99,012 102,357 106,340 61 Multifamily 20,538 21,393 23,436 22,921 23,436 23,936 24,558 25,353 62 Commercial 21,820 22,837 24,941 24,447 24,941 25,493 25,922 26,724 63 Farm 23,726 27,376 33,078 31,965 33,078 34,712 36,231 37,238 1. Includes loans held by nondeposit trust companies but not bank trust de- NOTE. Based on data from various institutional and governmental 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 a mounts are small or separate data are not readily available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • December 1980 1.56 CONSUMER INSTALLMENT CREDIT Total Outstanding, and Net Change Millions of dollars 1980 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 1977 1978 1979 Apr. May June July Aug. Sept. Oct. Amounts outstanding (end of period) 1 Total 230,829 275,629 311,122 306,131 303,759 301,378 301,754 303,263 304,707 305,452 By major holder 2 Commercial banks 112,373 136,189 149,604 145,405 143,174 140,922 140,489 140,790 141,037 140,897 3 Finance companies 44,868 54,298 68,318 71,545 72,101 73,118 73,909 74,433 74,823 74,985 4 Credit unions 37,605 45,939 48,186 45,731 44,907 43,740 43,390 43,347 43,562 43,518 5 Retailers2 23,490 24,876 27,916 25,746 25,792 25,724 25,707 26,065 26,372 26,925 6 Savings and loans 7,354 8,394 10,361 10,887 10,930 10,995 11,204 11,390 11,548 11,893 7 Gasoline companies 2,963 3,240 4,316 4,503 4,581 4,664 4,888 5,102 5,205 5,042 8 Mutual savings banks 2,176 2,693 2,421 2,314 2,274 2,215 2,167 2,136 2,160 2,192 By major type of credit 9 Automobile 82,911 102,468 115,022 115,014 114,318 113,174 113,604 114,061 114,334 114,452 10 Commercial banks 49,577 60,564 65,229 62,978 61,928 60,584 60,466 60,370 60,287 60,145 11 Indirect paper 27,379 33,850 37,209 36,325 35,791 34,929 34,704 34,630 34,612 34,557 12 Direct loans 22,198 26,714 28,020 26,653 26,137 25,655 25,762 25,740 25,675 25,588 13 Credit unions 18,099 21,967 23,042 21,868 21,474 20,916 20,749 20,728 20,831 20,810 14 Finance companies 15,235 19,937 26,751 30,168 30,916 31,674 32,389 32,963 33,216 33,497 15 Revolving 39,274 47,051 55,330 52,217 51,823 51,246 51,330 52,126 52,651 52,945 16 Commercial banks 18,374 24,434 28,954 27,889 27,456 26,926 26,841 27,114 27,252 27,211 17 Retailers 17,937 19,377 22,060 19,825 19,786 19,656 19,601 19,910 20,194 20,692 18 Gasoline companies 2,963 3,240 4,316 4,503 4,581 4,664 4,888 5,102 5,205 5,042 19 Mobile home 15,141 16,042 17,409 17,668 17,642 17,779 17,809 17,860 17,928 18,052 20 Commercial banks 9,124 9,553 9,991 9,965 9,927 10,039 10,000 9,968 9,945 9,897 21 Finance companies 3,077 3,152 3,390 3,523 3,529 3,544 3,546 3,566 3,601 3,657 22 Savings and loans 2,538 2,848 3,516 3,694 3,709 3,731 3,802 3,865 3,919 4,036 23 Credit unions 402 489 512 486 477 465 461 461 463 462 24 Other 93,503 110,068 123,361 121,232 119,976 119,179 119,011 119,216 119,794 120,003 25 Commercial banks 35,298 41,638 45,430 44,573 43,863 43,373 43,182 43,338 43,553 43,644 26 Finance companies 26,556 31,209 38,177 37,854 37,656 37,900 37,974 37,904 38,006 37,831 27 Credit unions 19,104 23,483 24,632 23,377 22,956 22,359 22,180 22,158 22,268 22,246 28 Retailers 5,553 5,499 5,856 5,921 6,006 6,068 6,106 6,155 6,178 6,233 29 Savings and loans 4,816 5,546 6,845 7,193 7,221 7,264 7,402 7,525 7,629 7,857 30 Mutual savings banks 2,176 2,693 2,421 2,314 2,274 2,215 2,167 2,136 2,160 2,192 Net change (during period)3 31 Total 35,278 44,810 35,491 -1,985 -3,434 -3,463 -609 15 1,450 1,465 By major holder 32 Commercial banks 18,645 23,813 13,414 -2,237 -2,495 -2,659 -972 -433 168 -78 33 Finance companies 5,948 9,430 14,020 984 105 625 418 495 628 369 34 Credit unions 6,436 8,334 2,247 -743 -977 -1,362 -381 -303 12 250 35 Retailers2 2,654 1,386 3,040 -65 -58 -108 140 112 424 465 36 Savings and loans 1,111 1,041 1,967 83 75 89 196 76 182 332 37 Gasoline companies 132 276 1,076 14 -42 8 36 101 30 70 38 Mutual savings banks 352 530 -273 -21 -42 -56 -46 -33 6 57 By major type of credit 39 Automobile 15,204 19,557 12,554 -645 -1,343 -1,738 -93 174 443 490 40 Commercial banks 9,956 10,987 4,665 -1,335 -1,246 -1,519 -413 -263 23 -166 41 Indirect paper 5,307 6,471 3,359 -698 -626 -945 -365 -187 12 -51 42 Direct loans 4,649 4,516 1,306 -637 -620 -574 -48 -76 11 -115 43 Credit unions 2,861 3,868 1,075 -373 -482 -660 -175 -152 -3 118 44 Finance companies 2,387 4,702 6,814 1,063 385 441 495 589 423 538 45 Revolving 6,248 7,776 8,279 -388 -488 -748 14 142 346 467 46 Commercial banks 4,015 6,060 4,520 -260 -308 -562 -131 -30 -66 -3 47 Retailers 2,101 1,440 2,683 -142 -138 -194 109 71 382 400 48 Gasoline companies 132 276 1,076 14 -42 8 36 101 30 70 49 Mobile home 565 897 1,366 36 -33 97 26 -8 50 102 50 Commercial banks 387 426 437 -30 -54 74 -43 -52 -29 -49 51 Finance companies -189 74 238 41 5 13 -6 18 28 36 52 Savings and loans 297 310 668 33 23 23 78 29 51 115 53 Credit unions 70 87 23 -8 -7 -13 -3 -3 0 0 54 Other 13,261 16,580 13,292 -988 -1,570 -1,074 -556 -293 611 406 55 Commercial banks 4,287 6,340 3,792 -612 -887 -652 -385 -88 240 140 56 Finance companies 3,750 4,654 6,968 -120 -285 171 -71 -112 177 -205 57 Credit unions 3,505 4,379 1,149 -362 -488 -689 -203 -148 15 132 58 Retailers 553 -54 357 77 80 86 31 41 42 65 59 Savings and loans 814 731 1,299 50 52 66 118 47 131 217 60 Mutual savings banks 352 530 -273 -21 -42 -56 -46 -33 6 57 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 A41 1.57 CONSUMER INSTALLMENT CREDIT Extensions and Liquidations Millions of dollars; monthly data are seasonally adjusted. 1980 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 1977 1978 1979 Apr. May June July Aug. Sept. Oct. Extensions 1 Total 254,071 298,351 322,558 22,548 21,239 20,698 24,497 25,601 27,308 27,548 By major holder 2 Commercial banks 117,896 142,720 149,599 9,338 8,812 8,574 10,548 10,893 11,905 11,704 3 Finance companies 41,989 50,505 61,518 4,841 4,304 4,324 4,888 5,204 5,359 5,229 4 Credit unions 34,028 40,023 36,778 1,865 1,615 1,302 2,267 2,354 2,733 3,088 5 Retailers1 39,133 41,619 46,092 3,870 3,880 3,881 4,032 4,375 4,422 4,395 6 Savings and loans 4,485 5,050 7,333 555 536 576 711 605 726 859 7 Gasoline companies 14,617 16,125 19,607 1,978 2,011 1,971 1,971 2,078 2,033 2,082 8 Mutual savings banks 1,923 2,309 1,631 101 81 70 80 92 130 191 By major type of credit 9 Automobile 75,641 88,987 91,847 55,,772255 55,,119922 44,,777700 6,609 6,964 7,718 7,632 10 Commercial banks 46,363 53,028 50,596 2,398 2,354 2,160 3,239 3,499 3,928 3,751 11 Indirect paper 25,149 29,336 28,183 1,433 1,353 1,092 1,645 1,895 2,124 2,055 12 Direct loans 21,214 23,692 22,413 965 1,001 1,068 1,594 1,604 1,804 1,696 13 Credit unions 16,616 19,486 18,301 962 838 708 1,178 1,224 1,444 1,572 14 Finance companies 12,662 16,473 22,950 2,365 2,000 1,902 2,192 2,241 2,346 2,309 15 Revolving 86,756 104,587 120,728 10,293 10,089 9,635 10,522 10,652 10,897 11,118 16 Commercial banks 38,256 51,531 60,406 4,929 4,745 4,342 4,974 4,785 5,005 5,159 17 Retailers 33,883 36,931 40,715 3,386 3,333 3,322 3,577 3,789 3,859 3,877 18 Gasoline companies 14,617 16,125 19,607 1,978 2,011 1,971 1,971 2,078 2,033 2,082 19 Mobile home 5,425 6,067 6,395 436 324 464 421 387 485 511 20 Commercial banks 3,466 3,704 3,720 220 166 302 195 202 230 230 21 Finance companies 643 886 797 84 52 53 49 59 84 87 22 Savings and loans 1,120 1,239 1,687 128 103 110 169 117 158 185 23 Credit unions 196 238 191 4 3 -1 8 9 13 9 24 Other 86,249 98,710 103,588 6,094 5,634 5,829 6,945 7,598 8,208 8,287 25 Commercial banks 29,811 34,457 34,877 1,791 1,547 1,770 2,140 2,407 2,742 2,564 26 Finance companies 28,684 33,146 37,771 2,392 2,252 2,369 2,647 2,904 2,929 2,833 27 Credit unions 17,216 20,299 18,286 899 774 595 1,081 1,121 1,276 1,507 28 Retailers 5,250 4,688 5,377 484 547 559 455 586 563 518 29 Savings and loans 3,365 3,811 5,646 427 433 466 542 488 568 674 30 Mutual savings banks 1,923 2,309 1,631 101 81 70 80 92 130 191 Liquidations 31 Total 218,793 253,541 287,067 24,533 24,673 24,161 25,106 25,586 25,858 26,083 By major holder 32 Commercial banks 99,251 118,907 136,185 11,575 11,307 11,233 11,520 11,326 11,737 11,782 33 Finance companies 36,041 41,075 47,498 3,857 4,199 3,699 4,470 4,709 4,731 4,860 34 Credit unions 27,592 31,689 34,531 2,608 2,592 2,664 2,648 2,657 2,721 2,838 35 Retailers1 36,479 40,233 43,052 3,935 3,938 3,989 3,892 4,263 3,998 3,930 36 Savings and loans 3,374 4,009 5,366 472 461 487 515 529 544 527 37 Gasoline companies 14,485 15,849 18,531 1,964 2,053 1,963 1,935 1,977 2,003 2,012 38 Mutual savings banks 1,571 1,779 1,904 122 123 126 126 125 124 134 By major type of credit 39 Automobile 60,437 69,430 79,293 6,370 6,535 6,508 6,702 6,790 7,275 7,142 40 Commercial banks 36,407 42,041 45,931 3,733 3,600 3,679 3,652 3,762 3,905 3,917 41 Indirect paper 19,842 22,865 24,824 2,131 1,979 2,037 2,010 2,082 2,112 2,106 42 Direct loans 16,565 19,176 21,107 1,602 1,621 1,642 1,642 1,680 1,793 1,811 43 Credit unions 13,755 15,618 17,226 1,335 1,320 1,368 1,353 1,376 1,447 1,454 44 Finance companies 10,275 11,771 16,136 1,302 1,615 1,461 1,697 1,652 1,923 1,771 45 Revolving 80,508 96,811 112,449 10,681 10,577 10,383 10,508 10,510 10,551 10,651 46 Commercial banks 34,241 45,471 55,886 5,189 5,053 4,904 5,105 4,815 5,071 5,162 47 Retailers 31,782 35,491 38,032 3,528 3,471 3,516 3,468 3,718 3,477 3,477 48 Gasoline companies 14,485 15,849 18,531 1,964 2,053 1,963 1,935 1,977 2,003 2,012 49 Mobile home 4,860 5,170 5,029 400 357 367 395 395 435 409 50 Commercial banks 3,079 3,278 3,283 250 220 228 238 254 259 279 51 Finance companies 832 812 559 43 47 40 55 41 56 51 52 Savings and loans 823 929 1,019 95 80 87 91 88 107 70 53 Credit unions 126 151 168 12 10 12 11 12 13 9 54 Other 72,988 82,130 90,296 7,082 7,204 6,903 7,501 7,891 7,597 7,881 55 Commercial banks 25,524 28,117 31,085 2,403 2,434 2,422 2,525 2,495 2,502 2,424 56 Finance companies 24,934 28,492 30,803 2,512 2,537 2,198 2,718 3,016 2,752 3,038 57 Credit unions 13,711 15,920 17,137 1,261 1,262 1,284 1,284 1,269 1,261 1,375 58 Retailers 4,697 4,742 5,020 407 467 473 424 545 521 453 59 Savings and loans 2,551 3,080 4,347 377 381 400 424 441 437 457 60 Mutual savings banks 1,571 1,779 1,904 122 123 126 126 125 124 134 1. 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

A42 Domestic Nonfinancial Statistics • December 1980 1.58 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1977 1978 1979 1980 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 1974 1975 1976 1977 1978 1979 H2 HI H2 HI H2 HI Nonfinancial sectors Total funds raised 191.3 210.8 271.9 338.5 400.3 394.9 378.9 384.5 416.1 380.5 408.2 325.1 2 Excluding equities 187.4 200.7 261.1 335.4 398.2 390.6 373.8 387.1 409.3 377.7 402.3 316.5 By sector and instrument 3 U.S. government 11.8 85.4 69.0 56.8 53.7 37.4 67.4 61.4 46.0 28.6 46.1 62.8 4 Treasury securities 12.0 85.8 69.1 57.6 55.1 38.8 68.6 62.3 47.9 30.9 46.6 63.4 5 Agency issues and mortgages -.2 -.4 -.1 -.9 -1.4 -1.4 -1.2 -.9 -1.9 -2.3 -.5 -.6 6 All other nonfinancial sectors 179.5 125.4 202.9 281.8 346.6 357.6 311.5 323.1 370.2 351.9 362.1 262.3 7 Corporate equities 3.8 10.1 10.8 3.1 2.1 4.3 5.1 -2.6 6.8 2.8 5.9 8.6 8 Debt instruments 175.6 115.3 192.0 278.6 344.5 353.2 306.4 325.7 363.4 349.1 356.2 253.7 9 Private domestic nonfinancial sectors 164.1 112.1 182.0 267.9 314.4 336.4 294.2 302.5 326.3 338.6 333.0 234.2 10 Corporate equities 4.1 9.9 10.5 2.7 2.6 3.5 4.9 -1.8 7.0 2.8 4.1 6.3 11 Debt instruments 160.0 102.1 171.5 265.1 311.8 333.0 289.3 304.3 319.2 335.8 328.9 227.8 12 Debt capital instruments 98.0 98.4 123.5 175.6 196.6 199.9 192.5 188.0 205.1 198.8 201.1 168.1 13 State and local obligations 16.5 16.1 15.7 23.7 28.3 18.9 25.0 27.8 28.7 16.0 21.8 17.8 14 Corporate bonds 19.7 27.2 22.8 21.0 20.1 21.2 25.4 20.6 19.6 22.4 19.9 33.3 15 Home 34.8 39.5 63.7 96.4 104.5 109.1 103.1 99.8 109.2 109.8 108.5 72.3 16 Multifamily residential 6.9 # 1.8 7.4 10.2 8.9 8.4 9.3 11.2 8.1 9.7 7.2 17 Commercial 15.1 11.0 13.4 18.4 23.3 25.7 21.9 21.2 25.4 26.0 25.4 20.9 18 Farm 5.0 4.6 6.1 8.8 10.2 16.2 8.7 9.3 11.1 16.6 15.9 16.6 19 Other debt instruments 62.0 3.8 48.0 89.5 115.2 133.0 96.7 116.3 114.1 137.0 127.8 59.7 20 Consumer credit 9.9 9.7 25.6 40.6 50.6 44.2 44.5 50.1 51.0 48.3 39.0 -9.2 21 Bank loans n.e.c 31.7 -12.3 4.0 27.0 37.3 50.6 26.7 43.1 31.4 48.2 52.9 17.8 22 Open market paper 6.6 -2.6 4.0 2.9 5.2 10.9 2.4 5.3 5.1 12.0 9.7 29.7 23 Other 13.7 9.0 14.4 19.0 22.2 27.3 23.2 17.8 26.5 28.4 26.2 21.3 24 By borrowing sector 164.1 112.1 182.0 267.9 314.4 336.4 294.2 302.5 326.3 338.6 333.0 234.2 25 State and local governments 15.5 13.7 15.2 20.4 23.6 15.5 25.0 21.0 26.1 13.0 18.0 16.0 26 Households 51.2 49.5 90.7 139.9 162.6 165.0 150.4 156.1 169.1 168.1 161.0 91.4 27 Farm 8.0 8.8 10.9 14.7 18.1 25.8 13.8 15.3 20.8 23.5 28.1 23.6 28 Nonfarm noncorporate 7.7 2.0 5.4 12.5 15.4 15.8 12.5 16.3 14.5 15.3 16.0 9.2 29 Corporate 81.7 38.1 59.8 80.3 94.7 114.3 92.4 93.7 95.8 118.7 109.8 94.1 30 Foreign 15.4 13.3 20.8 13.9 32.3 21.1 17.3 20.6 43.9 13.3 29.1 28.1 31 Corporate equities -.2 .2 .3 .4 -.5 .9 .2 -.8 -.2 * 1.7 2.2 32 Debt instruments 15.7 13.2 20.5 13.5 32.8 20.3 17.1 21.4 44.1 13.3 27.3 25.9 33 Bonds 2.1 6.2 8.6 5.1 4.0 3.9 5.7 5.0 3.0 3.0 4.7 2.0 34 Bank loans n.e.c 4.7 3.9 6.8 3.1 18.3 2.3 6.5 9.3 27.3 1.0 3.5 2.7 35 Open market paper 7.3 .3 1.9 2.4 6.6 11.2 2.2 3.6 9.6 6.1 16.3 15.7 36 U.S. government loans 1.6 2.8 3.3 3.0 3.9 3.0 2.9 3.6 4.2 3.1 2.8 5.5 Financial sectors 37 Total funds raised 39.2 12.7 24.1 54.0 81.4 87.4 60.3 80.7 82.1 87.0 87.8 59.2 By instrument 38 U.S. government related 23.1 13.5 18.6 26.3 41.4 52.4 29.9 38.5 44.3 45.8 59.0 45.8 39 Sponsored credit agency securities 16.6 2.3 3.3 7.0 23.1 24.3 6.8 21.9 24.3 21.5 27.0 25.1 40 Mortgage pool securities 5.8 10.3 15.7 20.5 18.3 28.1 23.1 16.6 20.1 24.2 32.0 20.7 41 Loans from U.S. government .7 .9 -.4 -1.2 0 0 0 0 0 0 0 0 42 Private financial sectors 16.2 -.8 5.5 27.7 40.0 35.0 30.4 42.2 37.8 41.2 28.8 13.3 43 Corporate equities .3 .6 1.0 .9 1.7 1.2 .8 2.2 1.1 2.8 -.4 8.5 44 Debt instruments 15.9 -1.4 4.4 26.9 38.3 33.8 29.6 40.0 36.7 38.4 29.2 4.8 45 Corporate bonds 2.1 2.9 5.8 10.1 7.5 7.8 10.1 8.5 6.4 8.7 7.0 10.7 46 Mortgages -1.3 2.3 2.1 3.1 .9 -1.2 3.0 2.1 -.3 -.5 -1.9 -6.7 47 Bank loans n.e.c 4.6 -3.7 -3.7 -.3 2.8 -.4 1.2 2.5 3.1 -.7 -.2 .3 48 Open market paper and repurchase agreements 3.8 1.1 22..22 99..66 14.6 18.4 9.5 13.5 15.7 23.0 13.8 -3.5 49 Loans from Federal Home Loan Banks 6.7 -4.0 -2.0 4.3 12.5 9.2 5.8 13.2 11.8 7.8 10.5 4.1 By sector 50 Sponsored credit agencies 17.3 3.2 2.6 5.8 23.1 24.3 6.8 21.9 24.3 21.5 27.0 25.1 51 Mortgage pools 5.8 10.3 15.7 20.5 18.3 28.1 23.1 16.6 20.1 24.2 32.0 20.7 52 Private financial sectors 16.2 -.8 5.5 27.7 40.0 35.0 30.4 42.2 37.8 41.2 28.8 13.3 53 Commercial banks 1.2 1.2 2.3 1.1 1.3 1.6 1.5 1.5 1.1 1.3 1.8 2.3 54 Bank affiliates 3.5 .3 -.8 1.3 6.7 4.5 1.2 5.8 7.6 6.2 2.9 4.5 55 Savings and loan associations 4.8 -2.3 .1 9.9 14.3 11.4 11.5 16.4 12.2 9.9 12.9 -4.6 56 Other insurance companies .9 1.0 .9 .9 1.1 1.0 1.0 1.0 1.1 1.0 .9 .8 57 Finance companies 6.0 .5 6.4 17.6 18.6 18.9 18.5 18.9 18.2 23.5 14.3 5.5 58 REITs .6 -1.4 -2.4 -2.2 -1.0 -.4 -2.0 -1.0 -1.0 -.6 -.1 -.9 59 Open-end investment companies -.7 -.1 -1.0 -.9 -1.0 -2.1 -1.3 -.5 -1.5 -.3 -3.9 5.7 All sectors 60 Total funds raised, by instrument 230.5 223.5 296.0 392.5 481.7 482.3 439.2 465.2 498.3 467.4 496.0 384.2 61 Investment company shares -.7 -.1 -1.0 -.9 -1.0 -2.1 -1.3 -.5 -1.5 -.3 -3.9 5.7 62 Other corporate equities 4.8 10.8 12.9 4.9 4.7 7.6 7.2 .1 9.4 5.8 9.3 11.4 63 Debt instruments 226.4 212.8 284.1 388.5 478.0 476.8 433.3 465.5 490.4 461.9 490.5 367.2 64 U.S. government securities 34.3 98.2 88.1 84.3 95.2 89.9 97.4 100.0 90.4 74.5 105.2 108.8 65 State and local obligations 16.5 16.1 15.7 23.7 28.3 18.9 25.0 27.8 28.7 16.0 21.8 17.8 66 Corporate and foreign bonds 23.9 36.4 37.2 36.1 31.6 32.9 41.1 34.2 29.1 34.1 31.5 45.9 67 Mortgages 60.5 57.2 87.1 134.0 149.0 158.6 145.1 141.6 156.4 159.8 157.4 110.2 68 Consumer credit 9.9 9.7 25.6 40.6 50.6 44.2 44.5 50.1 51.0 48.3 39.0 -9.2 69 Bank loans n.e.c 41.0 -12.2 7.0 29.8 58.4 52.5 34.4 54.9 61.8 48.6 56.2 20.9 70 Open market paper and RPs 17.7 -1.2 8.1 15.0 26.4 40.5 14.0 22.4 30.4 41.1 39.8 41.9 Digitized for FR71A SOEtRhe r loans 22.7 8.7 15.3 25.2 38.6 39.5 31.8 34.6 42.5 39.4 39.5 30.8 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A43 1.59 DIRECT AND INDIRECT SOURCES OF FUNDS TO CREDIT MARKETS Billions of dollars, except as noted; quarterly data are at seasonally adjusted annual rates 1977 1978 1979 1980 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997744 11997755 11997766 11997777 11997788 11997799 H2 HI H2 HI H2 HI Total funds advanced in credit markets to nonfinancial sectors 187.4 200.7 261.1 355.4 398.2 390.6 373.8 387.1 409.3 377.7 402.3 316.5 By public agencies and foreign 2 Total net advances 53.7 44.6 54.3 85.1 109.7 80.1 104.2 102.8 116.6 47.6 112.5 104.7 3 U.S. government securities 11.9 22.5 26.8 40.2 43.9 2.0 53.3 43.7 44.0 -22.1 26.2 24.8 4 Residential mortgages 14.7 16.2 12.8 20.4 26.5 36.1 22.0 22.2 30.7 32.6 39.6 33.5 5 FHLB advances to savings and loans 6.7 -4.0 -2.0 4.3 12.5 9.2 5.8 13.2 11.8 7.8 10.5 4.1 6 Other loans and securities 20.5 9.8 16.6 20.2 26.9 32.8 23.1 23.7 30.1 29.2 36.3 42.3 Total advanced, by sector 7 U.S. government 9.8 15.1 8.9 11.8 20.4 22.5 17.8 19.4 21.4 23.8 21.3 32.2 8 Sponsored credit agencies 26.5 14.8 20.3 26.8 44.6 57.5 32.0 39.4 49.8 49.9 65.2 44.0 9 Monetary authorities 6.2 8.5 9.8 7.1 7.0 7.7 4.0 13.4 .5 .9 14.5 14.3 10 Foreign 11.2 6.1 15.2 39.4 37.7 -7.7 50.4 30.6 44.9 -27.0 11.7 14.2 11 Agency borrowing not included in line 1 23.1 13.5 18.6 26.3 41.4 52.4 29.9 38.5 44.3 45.8 59.0 45.8 Private domestic funds advanced 12 Total net advances 156.8 169.7 225.4 276.5 330.0 362.9 299.6 322.8 337.1 375.9 348.8 257.7 13 U.S. government securities 22.4 75.7 61.3 44.1 51.3 87.9 44.1 56.3 46.4 96.6 79.1 83.9 14 State and local obligations 16.5 16.1 15.7 23.7 28.3 18.9 25.0 27.8 28.7 16.0 21.8 17.8 15 Corporate and foreign bonds 20.9 32.8 30.5 22.5 22.5 25.6 27.0 24.1 20.9 26.9 24.3 31.5 16 Residential mortgages 26.9 23.2 52.7 83.3 88.2 81.8 89.4 86.7 89.6 85.1 78.5 45.9 17 Other mortgages and loans 76.8 17.9 63.3 107.3 152.2 157.9 119.7 141.1 163.3 159.1 155.6 82.6 18 LESS: Federal Home Loan Bank advances 6.7 -4.0 -2.0 4.3 12.5 9.2 5.8 13.2 11.8 7.8 10.5 4.1 Private financial intermediation 19 Credit market funds advanced by private financial institutions 125.5 122.5 190.3 255.9 296.9 291.4 265.0 301.7 292.0 308.2 274.5 231.3 20 Commercial banking 66.6 29.4 59.6 87.6 128.7 121.1 90.7 132.5 125.0 124.6 117.6 57.3 21 Savings institutions 24.2 53.5 70.8 82.0 75.9 56.3 82.6 75.8 75.9 57.7 54.9 28.8 22 Insurance and pension funds 29.8 40.6 49.9 67.9 73.5 70.4 70.6 76.9 70.2 75.4 65.5 84.6 23 Other finance 4.8 -1.0 10.0 18.4 18.7 43.6 21.2 16.6 20.8 50.6 36.6 60.7 24 Sources of funds 125.5 122.5 190.3 255.9 296.9 291.4 265.0 301.7 292.0 308.2 274.5 231.3 25 Private domestic deposits 67.5 92.0 124.6 141.2 142.5 136.7 143.8 138.3 146.7 121.7 151.6 149.7 26 Credit market borrowing 15.9 -1.4 4.4 26.9 38.3 33.8 29.6 40.0 36.7 38.4 29.2 4.8 27 Other sources 42.1 32.0 61.3 87.8 116.0 120.9 91.7 123.5 108.6 148.1 93.7 76.8 28 Foreign funds 10.3 -8.7 -4.6 1.2 6.3 26.3 .8 5.7 6.9 49.4 3.2 -16.5 29 Treasury balances -5.1 -1.7 -.1 4.3 6.8 .4 8.5 1.9 11.6 5.1 -4.3 -2.0 30 Insurance and pension reserves 26.2 29.7 34.5 49.4 62.7 49.0 53.4 66.2 59.2 53.9 44.0 59.8 31 Other, net 10.6 12.7 31.4 32.9 40.3 45.2 29.0 49.6 31.0 39.6 50.8 35.4 Private domestic nonfinancial investors 32 Direct lending in credit markets 47.2 45.8 39.5 47.5 71.4 105.4 64.1 61.1 81.7 106.1 103.5 31.2 33 U.S. government securities 18.9 24.1 16.1 23.0 33.2 57.8 34.2 32.1 34.4 64.1 51.5 14.6 34 State and local obligations 9.3 8.4 3.8 2.6 4.5 -2.5 5.7 7.0 2.0 -2.3 -2.7 -3.4 35 Corporate and foreign bonds 5.1 8.4 5.8 -3.3 -1.4 12.2 -6.5 -3.7 1.0 7.1 17.2. 5.3 36 Commercial paper 5.8 -1.3 1.9 9.5 16.3 10.7 10.8 8.2 24.4 12.5 9.0 -8.0 37 Other 8.0 6.2 11.8 15.7 18.7 27.1 19.9 17.5 20.0 24.7 28.5 22.6 38 Deposits and currency 73.8 98.1 131.9 149.5 151.8 144.7 154.5 148.7 154.8 131.1 158.1 158.7 39 Security RPs -2.2 .2 2.3 2.2 7.5 6.6 .2 9.8 5.1 18.5 -5.3 5.3 40 Money market fund shares 2.4 1.3 * .2 6.9 34.4 .9 6.1 7.7 30.2 38.6 61.9 41 Time and savings accounts 65.4 84.0 113.5 121.0 115.2 84.7 126.7 110.7 119.8 71.4 97.9 91.6 42 Large at commercial banks 32.4 -15.8 -13.2 23.0 45.9 .4 49.6 33.9 57.9 -25.3 26.0 -11.0 43 Other at commercial banks 11.3 40.3 57.6 29.0 8.2 39.3 11.4 18.4 -1.9 41.3 37.3 60.8 44 At savings institutions 21.8 59.4 69.1 69.0 61.1 45.1 65.7 58.5 63.8 55.4 34.7 41.8 4 4 6 5 Mo D n e e m y and deposits 8 1 . . 2 9 1 6 2 . . 4 6 1 8 6 . . 8 1 2 1 6 7 . . 1 8 2 1 2 2 . . 2 9 1 18 1 . . 9 0 2 1 6 6 . . 8 1 2 1 2 1 . . 1 6 2 1 2 4 . . 3 2 1 1 0 . . 6 9 2 26 0 . . 8 3 -9 -. . 1 2 47 Currency 6.3 6.2 7.3 8.3 9.3 7.9 10.8 10.5 8.1 9.3 6.5 9.0 48 Total of credit market instruments, deposits and currency 121.0 143.9 171.4 197.0 223.2 250.0 218.6 209.8 236.6 237.1 261.6 189.9 49 Public support rate (in percent) 28.7 22.2 20.8 25.4 27.5 20.5 27.9 26.5 28.5 12.6 28.0 33.1 50 Private financial intermediation (in percent) 80.0 72.2 84.4 92.5 90.0 80.3 88.5 93.5 86.6 82.0 78.7 89.8 51 Total foreign funds 21.5 -2.6 10.6 40.5 44.0 18.6 51.2 36.3 51.8 22.4 14.9 -2.2 MEMO: Corporate equities not included above 52 Total net issues 4.1 10.7 11.9 4.0 3.7 5.5 5.9 -.4 7.9 5.5 5.4 17.0 53 Mutual fund shares -.7 -.1 -1.0 -.9 -1.0 -2.1 -1.3 -.5 -1.5 -.3 -3.9 5.7 54 Other equities 4.8 10.8 12.9 4.9 4.7 7.6 7.2 .1 9.4 5.8 9.3 11.4 55 Acquisitions by financial institutions 5.8 9.6 12.3 7.4 7.6 15.7 8.1 .4 14.7 12.5 18.9 16.7 56 Other net purchases -1.7 1.1 -.4 -3.4 -3.8 -10.2 -2.2 -.8 -6.8 -7.0 -13.5 .3 NOTES BY LINE NUMBER. 30. Excludes net investment of these reserves in corporate equities. 1. Line 2 of p. A-42. 31. Mainly retained earnings and net miscellaneous liabilities. 2. Sum of lines 3-6 or 7-10. 32. Line 12 less line 19 plus line 26. 6. Includes farm and commercial mortgages. 33-37. Lines 13-17 less amounts acquired by private finance. Line 37 includes 11. Credit market funds raised by federally sponsored credit agencies, and net mortgages. issues of federally related mortgage pool securities. Included below in lines 47. Mainly an offset to line 9. 3, 13, 33. 48. Lines 32 plus 38, or line 12 less line 27 plus 45. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum 49. Line 2/line 1. of lines 27, 32, 39, 40, 41, and 46. 50. Line 19/line 12. 17. Includes farm and commercial mortgages. 51. Sum of lines 10 and 28. 25. Sum of lines 39, 40, 41, and 46. 52. 54. Includes issues by financial institutions. 26. Excludes equity issues and investment company shares. Includes line 18. NOTE. Full statements for sectors and transaction types quarterly, and annually 28. Foreign deposits at commercial banks, bank borrowings from foreign branches, for flows and for amounts outstanding, may be obtained from Flow of Funds and liabilities of foreign banking agencies to foreign affiliates. Section, Division of Research and Statistics, Board of Governors of the Federal 29. Demand deposits at commercial banks. Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • December 1980 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1980 MMeeaassuurree 11997777 11997788 11997799 Mar. Apr. May June July Aug.' Sept.' Oct. Nov.6 1 Industrial production1 138.2 146.1 152.5 152.1 148.3 144.0 141.5 140.4 141.8 143.9 146.5 148.5 Market groupings 2 Products, total 137.9 144.8 150.0 150.0 146.6 143.7 142.5 142.8 143.8 145.1 146.8 148.1 3 Final, total 135.9 142.2 147.2 147.7 145.4 143.1 142.3 142.4 142.8 143.8 145.6 146.8 4 Consumer goods 145.3 149.1 150.8 148.6 145.3 142.4 142.1 142.0 142.7 144.1 146.4 147.6 5 Equipment 123.0 132.8 142.2 146.6 145.6 144.0 142.6 142.9 142.9 143.3 144.5 145.8 6 Intermediate 145.1 154.1 160.5 158.3 150.8 146.2 143.5 144.5 147.6 150.1 151.3 152.8 7 Materials 138.6 148.3 156.4 155.3 151.0 144.3 140.0 136.5 138.6 142.1 146.1 149.0 Industry groupings 8 Manufacturing 138.4 146.8 153.6 152.1 147.9 143.4 140.3 139.1 140.6 143.2 146.0 148.0 Capacity utilization (percent)12 9 Manufacturing 81.9 84.4 85.7 82.8 80.3 77.6 75.7 74.9 75.5 76.6 77.9 78.8 10 Industrial materials industries 82.7 85.6 87.4 84.7 82.1 78.3 75.7 73.7 74.6 76.3 78.3 79.6 11 Construction contracts (1972 = 100)3 160.5 174.3 181.5 155.0 130.0 125.0 145.0 148.0 192.0 163.0 167.0 n.a. 12 Nonagricultural employment, total4 125.3 131.4 136.0 138.5 138.2 137.5 136.8 136.6 137.0 137.4' 137.7 138.1 13 Goods-producing, total 104.5 109.8 114.0 113.6 112.1 110.5 109.1 108.0 108.6 109.3 109.9 110.5 14 Manufacturing, total 101.2 105.3 107.9 107.7 106.1 104.3 102.9 102.0 102.5 103.1 103.6 104.1 15 Manufacturing, production-worker 98.8 102.8 104.9 103.8 101.7 99.1 97.4 96.2 97.0 97.7 98.2 98.9 16 Service-producing 136.7 143.2 148.1 152.2 152.6 152.3 152.1 152.3 152.6 152.7 153.0 153.2 17 Personal income, total5 244.4 274.1 307.1 330.4 330.7 331.8 333.6 339.0 342.0' 345.8' 349.5 n.a. 18 Wages and salary disbursements 230.2 258.1 287.2 307.4 306.2 306.4 307.0 307.6 311.1' 314.1' 318.4 n.a. 19 Manufacturing 198.3 222.4 246.8 260.8 257.8 254.4 252.9 252.8 255.9' 260.2' 264.3 n.a. 20 Disposable personal income 194.8 217.7 242.5 262.2 270.3' n a 21 Retail sales6 229.8 253.8 281.6 292.4 286.6 285.0 290.4 299.1 301.0 306.0 307.7 312.7 Prices7 22 Consumer 181.5 195.4 217.4 239.8 242.5 244.9 247.6 247.8 249.4 251.7 253.9 n.a. 23 Producer finished goods 180.6 194.6 216.1 238.5 240.5 241.6 243.0' 246.6 249.0 248.9 252.2 253.2 1. The industrial production and capacity utilization series have been revised 5. Based on data in Survey of Current Business (U.S. Department of Commerce). back to January 1979. Series for disposable income is quarterly. 2. Ratios of indexes of production to indexes of capacity. Based on data from 6. Based on Bureau of Census data published in Survey of Current Business. Federal Reserve, McGraw-Hill Economics Department, and Department of Com- 7. Data without seasonal adjustment, as published in Monthly Labor Review. merce. Seasonally adjusted data for changes in the price indexes may be obtained from 3. Index of dollar value of total construction contracts, including residential, the Bureau of Labor Statistics, U.S. Department 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. Monthly data for lines 12 through 16 reflect March 1979 benchmarks; only sea- Figures for industrial production for the last two months are preliminary and sonally adjusted data are presently available. estimated, respectively. 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION1 Seasonally adjusted 1979 1980 1979 1980 1979 1980 Series Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Manufacturing 153.4 152.8 143.9 141.0 181.7 183.3 184.8 186.3 84.4 83.4 77.9 75.7 2 Primary processing 162.5 160.5 145.0 139.5 187.1 188.5 190.0 191.5 86.9 85.1 76.3 72.9 3 Advanced processing 148.5 148.8 143.3 141.8 178.9 180.5 182.0 183.5 83.0 82.5 78.7 77.3 4 Materials 156.5 156.3 145.1 139.1 181.2 182.8 184.3 185.8 86.3 85.5 78.7 74.9 5 Durable goods 156.3 155.0 140.6 131.3 185.7 187.2 188.6 190.0 84.1 82.8 74.6 69.1 6 Metal materials 119.6 117.1 100.6 86.5 140.6 140.7 140.8 140.9 85.1 83.2 71.4 61.4 7 Nondurable goods 179.2 179.3 166.0 161.9 197.6 199.8 202.0 204.3 90.6 89.7 82.2 79.2 8 Textile, paper, and chemical 187.9 187.5 171.9 165.4 205.8 208.3 211.0 213.7 91.2 90.0 81.5 77.4 9 Textile 123.8 120.6 116.4 113.4 138.4 138.8 139.2 139.6 89.4 86.9 83.7 81.2 10 Paper 148.9 146.1 142.1 142.4 153.3 154.7 156.0 157.4 97.1 94.5 91.0 90.5 11 Chemical 231.8 233.6 208.3 197.7 256.8 260.4 264.6 268.7 90.2 89.7 78.7 73.5 12 Energy materials 129.0 130.8 130.0 129.7 150.3 151.1 151.8 152.6 85.9 86.6 85.6 85.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Labor Market A45 2.11 Continued Previous cycle1 Latest cycle3 1979 1980 Series High Low High Low Oct. May June July Aug/ Sept/ Oct. Nov. Capacity utilization rate (percent) 13 Manufacturing 88.0 69.0 87.2 74.9 84.8 77.6 75.7 74.9 75.5 76.6 77.9' 78.8 14 Primary processing 93.8 68.2 90.1 70.9 87.5 75.8 72.7 70.9 72.5 75.1 77.3' 79.0 15 Advanced processing 85.5 69.4 86.2 77.1 83.4 78.6 77.4 77.1 77.1 77.6 78.4' 78.9 16 Materials 92.6 69.4 88.8 73.7 86.6 78.3 75.7 73.7 74.6 76.3 78.3' 79.6 17 Durable goods 91.5 63.6 88.4 68.0 84.8 74.1 70.8 68.0 69.1 70.2 73.0' 75.3 18 Metal materials 98.3 68.6 96.0 58.4 85.4 70.0 67.0 58.4 62.2 63.7 70.7 19 Nondurable goods 94.5 67.2 90.9 76.8 90.7 81.8 78.7 76.8 78.2 82.7 84.4' 84.8 20 Textile, paper, and chemical 95.1 65.3 91.4 74.5 91.4 81.3 77.1 74.5 76.4 81.4 83.8' 83.9 21 Textile 92.6 57.9 90.1 79.5 90.0 84.5 81.8 82.0 79.5 82.0 82.3 22 Paper 99.4 72.4 97.6 88.1 96.9 90.8 91.6 88.1 90.2 93.0 92.6 23 Chemical 95.5 64.2 91.2 69.6 90.4 78.3 72.7 69.6 72.5 78.5 82.1 24 Energy materials 94.6 84.8 88.8 85.0 85.5 85.3 85.8 85.6 85.2 84.2 83.7' 83.9 1. Monthly high 1973; monthly low 1975. 2. Preliminary; monthly highs December 1978 through January 1980; monthly lows July 1980 through September 1980. 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1980 CCaatteeggoorryy 1977 1978 1979 May June July Aug. Sept.' Occ. Nov. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 158,559 161,058 163,620 165,886 166,105 166,391 166,578 166,789 167,005 167,201 22 LLaabboorr ffoorrccee ((iinncclluuddiinngg AArrmmeedd FFoorrcceess))11 .... 99,534 102,537 104,996 107,230 106,634 107,302 107,139 107,155 107,301 107,439 33 CCiivviilliiaann llaabboorr ffoorrccee 97,401 100,420 102,908 105,142 104,542 105,203 105,025 105,034 105,180 105,320 EEmmppllooyymmeenntt 44 NNoonnaaggrriiccuullttuurraall iinndduussttrriieess22 87,302 91,031 93,648 93,609 93,346 93,739 93,826 93,765 93,851 94,054 55 AAggrriiccuullttuurree 3,244 3,342 3,297 3,379 3,191 3,257 3,180 3,442 3,324 3,342 UUnneemmppllooyymmeenntt 66 NNuummbbeerr 6,855 6,047 5,963 8,154 8,006 8,207 8,019 7,827 8,005 7,924 77 RRaattee ((ppeerrcceenntt ooff cciivviilliiaann llaabboorr ffoorrccee)) 7.0 6.0 5.8 7.8 7.7 7.8 7.6 7.5 7.6 7.5 88 NNoott iinn llaabboorr ffoorrccee 59,025 58,521 58,623 58,657 59,471 59,091 59,439 59,633 59,704 59,762 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 82,423 86,446 89,497 90,468 90,047 89,867 90,142 90,384 90,612' 90,880 10 Manufacturing 19,682 20,476 20,979 20,286 20,014 19,828 19,940 20,044 20,138' 20,243 11 Mining 813 851 958 1,023 1,029 1,013 1,013 1,028 1,038' 1,051 12 Contract construction 3,851 4,271 4,642 4,436 4,379 4,322 4,359 4,404 4,437 4,472 13 Transportation and public utilities 4,713 4,927 5,154 5,167 5,134 5,114 5,129 5,124 5,142' 5,145 14 Trade 18,516 19,499 20,140 20,487 20,459 20,506 20,589 20,620 20,637' 20,663 15 Finance 4,467 4,727 4,964 5,137 5,150 5,167 5,180 5,194 5,206' 5,214 16 Service 15,303 16,220 17,047 17,659 17,652 17,760 17,788 17,861 17,906' 17,981 17 Government 15,079 15,476 15,613 16,273 16,230 16,157 16,144 16,109 16,108' 16,111 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 workfigures. Based on data from Employment and Earnings (U.S. Department of La- ers, and members of the Armed Forces. Data are adjusted to the March 1979 bor). benchmark and only seasonally adjusted data are available at this time. Based on 2. Includes self-employed, unpaid family, and domestic service workers. data from Employment and Earnings (U.S. Department of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • December 1980 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value* Monthly data are seasonally adjusted. 1967 1979 1979 1980 Grouping pro- averp ti o o r n - age Nov. Dec. Feb. Mar. Apr. May June July Aug. Sept. Oct.P Nov.e Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 152.5 152.3 152.5 152.6 152.1 148.3 144.0 141.5 140.4 141.8 143.9 146.5 148.5 2 Products 60.71 150.0 149.8 149.8 150.1 150.0 146.6 143.7 142.5 142.8 143.8 145.1 146.8 148.1 3 Final products 47.82 147.2 147.1 147.2 147.7 147.7 145.4 143.1 142.3 142.4 142.8 143.8 145.6 146.8 4 Consumer goods 27.68 150.8 149.1 148.6 148.4 148.6 145.3 142.4 142.1 142.0 142.7 144.1 146.4 147.6 5 Equipment 20.14 142.2 144.2 145.2 146.6 146.6 145.6 144.0 142.6 142.9 142.9 143.3 144.5 145.8 6 Intermediate products 12.89 160.5 160.2 159.6 159.2 158.3 150.8 146.2 143.5 144.5 147.6 150.1 151.3 152.8 7 Materials 39.29 156.4 156.2 156.6 156.5 155.3 151.0 144.3 140.0 136.5 138.6 142.1 146.1 149.0 Consumer goods 8 Durable consumer goods 7.89 155.8 149.6 142.3 144.5 144.1 136.3 128.8 128.2 128.3 128.6 132.9 139.5 141.6 9 Automotive products 2.83 167.7 150.6 141.8 142.1 141.0 126.3 118.5 121.6 129.2 121.5 130.6 141.9 145.6 10 Autos and utility vehicles 2.03 154.3 131.0 121.4 124.6 122.0 102.3 92.6 97.1 106.4 94.1 105.5 120.1 124.0 11 Autos 1.90 136.7 118.3 110.2 116.8 114.9 97.1 88.4 95.7 105.2 91.3 98.0 110.7 114.3 12 Auto parts and allied goods 201.5 200.3 200.3 188.5 189.1 187.2 184.0 183.7 186.9 191.1 194.2 197.4 200.2 13 Home goods 5.06 149.2 149.0 149.4 145.8 145.8 142.0 134.6 132.0 127.7 132.6 134.2 138.2 139.3 14 Appliances, A/C, and TV 1.40 127.4 129.8 129.8 128.9 122.1 114.8 102.8 105.6 102.3 114.2 116.3 123.3 123.7 15 Appliances and TV 1.33 129.3 132.4 135.5 124.4 125.0 117.5 106.0 108.5 103.4 114.2 117.6 125.5 16 Carpeting and furniture 1.07 173.0 171.6 170.8 168.2 169.1 165.8 154.2 146.7 136.1 141.1 146.1 149.3 17 Miscellaneous home goods 2.59 151.1 150.0 149.4 149.4 149.0 146.8 143.8 140.2 138.1 139.1 139.1 141.6 143.2 18 Nondurable consumer goods 19.79 148.8 149.0 149.3 150.0 150.3 148.8 147.7 147.6 147.4 148.3 148.6 149.1 150.0 19 Clothing 4.29 131.9 132.3 131.3 130.7 131.8 128.7 127.9 126.7 122.5 123.6 20 Consumer staples 15.50 153.5 153.6 154.3 155.4 155.5 154.5 153.2 153.4 154.3 155.1 156.2 156.3 157.2 21 Consumer foods and tobacco 8.33 145.0 144.8 145.8 146.5 147.3 146.2 146.1 146.2 146.4 146.0 147.0 147.3 22 Nonfood staples 7.17 163.4 163.8 164.3 165.6 165.0 164.0 161.5 161.7 163.6 165.7 166.8 166.8 168.2 23 Consumer chemical products 2.63 205.5 207.9 207.8 211.8 208.9 206.9 203.0 202.6 204.3 209.3 213.0 214.5 24 Consumer paper products 1.92 120.8 119.3 121.0 122.5 121.6 120.4 120.2 120.6 121.5 122.0 122.3 123.7 25 Consumer energy products 2.62 152.2 152.2 152.4 150.9 152.7 152.8 150.1 150.9 153.5 153.9 153.1 150.6 26 Residential utilities 1.45 163.8 166.5 165.0 162.5 169.6 172.5 169.8 170.1 176.5 178.6 Equipment 27 Business 12.63 171.3 172.6 174.1 176.0 176.1 174.2 171.9 169.8 170.1 170.3 170.7 171.9 173.4 28 Industrial 6.77 152.2 153.5 153.2 159.2 159.3 159.3 157.8 155.2 154.8 154.5 154.4 155.7 157.1 29 Building and mining 1.44 206.3 205.1 205.0 231.6 235.6 239.5 242.2 241.0 244.4 243.6 243.4 245.9 249.0 30 Manufacturing 3.85 130.3 132.5 132.1 133.1 133.1 131.9 129.5 126.1 126.0 124.4 123.9 124.4 125.0 31 Power 1.47 156.3 157.6 157.8 156.4 153.2 152.3 149.1 147.1 142.0 145.9 147.0 148.9 151.0 32 Commercial transit, farm 5.86 193.4 194.7 198.1 195.5 195.5 191.5 188.2 186.7 187.8 188.4 189.5 190.6 192.2 33 Commercial 3.26 228.1 232.5 237.2 238.7 240.4 235.6 232.0 228.8 229.0 233.6 237.2 238.2 239.2 34 Transit 1.93 151.6 150.1 151.9 145.4 142.5 143.0 136.3 138.0 140.9 138.4 134.2 135.0 136.7 35 Farm 67 144.9 139.5 141.0 129.9 129.7 116.4 124.6 121.6 122.5 112.7 116.8 119.4 36 Defense and space 7.51 93.4 96.4 96.7 97.2 97.1 97.6 97.2 96.8 97.2 96.9 97.4 98.4 99.4 Intermediate products 37 Construction supplies 6.42 158.0 157.4 155.7 153.8 152.3 139.4 133.0 128.5 128.6 133.1 137.5 140.1 142.9 38 Business supplies 6.47 163.1 163.0 163.5 164.5 164.3 162.0 159.4 158.4 160.4 161.9 162.7 162.5 39 Commercial energy products 1.14 172.0 172.7 173.8 171.7 174.1 174.8 172.0 168.7 172.1 173.7 172.0 170.4 Materials 40 Durable goods materials 20.35 157.8 155.8 155.8 154.8 154.2 148.2 139.8 133.8 129.0 131.3 133.7 139.5 144.2 41 Durable consumer parts 4.58 137.1 126.1 125.1 119.9 120.3 110.6 100.1 96.0 93.9 98.1 102.9 111.0 114.8 42 Equipment parts 5.44 189.9 195.1 196.7 198.9 199.2 195.8 190.8 182.5 177.6 176.3 175.6 177.7 181.4 43 Durable materials n.e.c 10.34 150.1 148.3 147.8 147.0 145.5 139.8 130.5 125.0 118.9 122.4 125.2 132.0 137.6 44 Basic metal materials 5.57 124.1 119.9 118.1 116.4 116.6 109.3 100.0 95.9 84.7 89.4 91.4 100.8 45 Nondurable goods materials 10.47 175.9 178.5 180.2 179.9 177.0 173.2 165.2 159.6 156.2 159.8 169.6 173.6 175.0 46 Textile, paper, and chemical materials 7.62 183.7 187.0 189.2 188.1 185.2 180.7 171.5 163.4 158.5 163.2 174.5 180.4 181.3 47 Textile materials 1.85 121.0 123.2 123.8 121.1 120.7 117.7 117.6 114.0 114.4 111.0 114.7 115.2 48 Paper materials 1.62 143.5 148.5 150.1 146.0 144.2 141.2 141.7 143.4 138.4 142.0 146.9 146.6 49 Chemical materials 4.15 227.4 230.5 233.6 234.5 230.1 224.3 207.3 193.3 186.1 194.9 212.0 222.8 50 Containers, nondurable 1.70 167.4 168.1 168.2 170.6 167.1 166.8 155.8 157.7 159.0 158.8 169.2 168.2 51 Nondurable materials n.e.c 1.14 136.8 137.6 138.8 138.7 137.4 133.0 136.4 136.8 136.6 137.9 137.2 136.5 52 Energy materials 8.48 128.9 129.4 129.4 131.5 130.9 130.1 129.6 130.4 130.4 130.0 128.6 128.1 128.4 53 Primary energy 4.65 113.5 114.0 113.7 113.7 115.6 116.4 116.2 117.3 115.6 114.0 114.3 113.4 54 Converted fuel materials 3.82 147.7 148.2 148.5 153.1 149.6 146.9 145.8 146.4 148.4 149.4 145.9 145.9 Supplementary groups 55 Home goods and clothing 9.35 141.3 141.3 141.1 138.9 139.4 135.9 131.5 129.5 125.3 128.5 128.3 131.2 132.3 56 Energy, total 12.23 137.9 138.3 138.4 139.4 139.6 139.1 137.9 138.4 139.2 139.2 137.8 136.8 137.6 57 Products 3.76 158.2 158.4 158.9 157.2 159.1 159.5 156.7 156.3 159.1 159.9 158.8 156.5 58 Materials 8.48 128.9 129.4 129.4 131.5 130.9 130.1 129.6 130.4 130.4 130.0 128.6 128.1 128.4 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A47 2.13 Continued 1967 1979 1980 Grouping SIC p p r o o r - - A 1199 v 77 g 99 . code tion Nov. Dec. Feb. Mar. Apr. May June July Aug. Sept. Oct./' Nov.6 Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities 12.05 144.7 147.5 148.2 149.0 151.4 150.1 149.6 150.1 150.1 150.5 149.9 150.2 151.8 2 Mining 6.36 125.5 129.9 131.4 132.9 133.0 133.1 133.4 132.9 130.6 129.6 130.5 131.8 134.2 3 Utilities 5.69 166.0 167.2 166.9 167.1 172.0 169.1 167.7 169.3 171.8 173.8 171.6 170.8 171.4 4 Electric 3.88 185.8 186.6 186.0 185.7 192.4 187.9 186.0 188.7 192.4 195.4 5 Manufacturing 87.95 153.6 153.3 153.2 153.0 152.1 147.9 143.4 140.3 139.2 140.6 143.2 146.0 148.0 6 Nondurable 35.97 164.0 165.0 165.3 165.9 164.7 161.6 158.0 155.3 154.7 156.9 159.8 161.4 162.7 7 Durable 51.98 146.4 145.2 144.8 144.1 143.4 138.4 133.3 129.9 128.3 129.4 131.7 135.3 137.8 Mining 8 Metal 10 .51 127.0 132.2 136.9 136.6 132.7 123.5 120.8 120.0 83.1 71.2 73.1 85.9 9 Coal 11.12 .69 135.6 143.3 143.4 136.0 137.2 143.4 145.0 150.0 149.8 154.9 148.9 144.7 147.4 10 Oil and gas extraction 13 4.40 121.7 125.7 127.2 130.4 131.8 132.5 133.9 133.2 134.3 133.6 134.7 135.3 136.8 11 Stone and earth minerals 14 .75 137.6 140.5 141.4 142.3 136.0 133.1 128.1 123.9 123.7 123.5 128.2 130.3 Nondurable manufactures 12 Foods 20 8.75 147.5 147.9 148.4 149.0 149.3 147.8 149.5 149.0 148.9 148.3 148.7 149.2 13 Tobacco products 21 .67 117.8 113.0 116.6 120.0 122.2 121.9 116.2 113.9 119.6 117.4 119.1 14 Textile mill products 22 2.68 145.0 148.5 148.0 144.0 142.0 139.9 137.1 133.6 132.5 132.6 133.0 133.7 15 Apparel products 23 3.31 134.4 133.5 131.1 133.8 136.1 131.3 128.6 127.2 121.5 123.8 16 Paper and products 26 3.21 151.0 154.3 155.7 153.6 152.7 148.2 145.7 146.2 143.6 147.1 151.7 151.4 154.6 17 Printing and publishing 27 4.72 136.9 136.2 137.8 139.9 139.2 136.5 135.5 135.4 138.6 140.3 140.1 141.5 142.4 18 Chemicals and products 28 7.74 211.8 215.3 216.8 217.4 213.6 209.1 199.2 191.1 190.3 197.8 206.0 210.4 19 Petroleum products 29 1.79 143.9 142.1 145.4 144.6 140.7 137.4 133.0 131.3 130.5 126.7 131.1 129.5 132.2 20 Rubber ana plastic products ... 30 2.24 272.2 271.3 263.8 266.8 264.4 261.8 248.1 242.9 242.5 245.9 253.1 258.9 21 Leather and products 31 .86 71.7 70.4 71.2 73.3 72.8 69.9 70.1 68.5 67.8 67.7 67.2 68.5 Durable manufactures 22 Ordnance, private and government 19.91 3.64 75.2 78.0 77.5 77.2 76.9 77.5 77.9 77.5 77.1 77.2 77.1 78.9 79.8 23 Lumber and products 24 1.64 136.9 135.9 132.4 130.2 25.3 105.2 104.5 109.7 112.8 121.7 122.7 121.4 24 Furniture and fixtures 25 1.37 161.5 162.9 161.0 159.2 159.5 157.1 149.5 143.1 138.6 141.1 144.3 146.2 25 Clay, glass, stone products 32 2.74 163.9 164.1 163.8 162.4 156.4 148.8 140.8 134.5 134.2 135.7 141.0 143.4 26 Primary metals 33 6.57 121.3 117.1 115.3 111.9 113.7 106.4 96.1 90.4 81.7 86.0 89.9 100.0 107.7 27 Iron and steel 331.2 4.21 113.2 108.1 106.6 103.4 105.9 97.4 84.4 75.4 68.1 75.3 79.8 93.8 28 Fabricated metal products 34 5.93 148.5 146.9 146.2 145.7 145.5 141.4 133.2 126.1 123.8 125.8 129.0 132.4 134.6 29 Nonelectrical machinery 35 9.15 163.7 162.9 163.0 167.0 166.5 163.2 162.1 158.3 158.5 158.8 159.1 160.5 161.5 30 Electrical machinery 36 8.05 175.0 179.5 181.6 179.2 179.2 177.0 171.4 166.6 165.0 166.7 167.8 169.9 171.9 31 Transportation equipment 37 9.27 135.4 128.3 127.3 125.7 123.8 115.1 109.8 110.0 110.7 108.3 112.9 118.9 120.9 32 Motor vehicles and parts 371 4.50 159.9 139.3 137.1 133.9 130.1 114.7 105.9 106.7 107.9 104.4 113.4 124.7 128.3 33 Aerospace and miscellaneous transportation equipment 372-9 4.77 112.2 117.9 118.1 118.1 117.8 115.5 113.5 113.1 113.4 111.9 112.3 113.3 113.8 34 Instruments 38 2.11 174.9 173.4 175.0 174.8 173.5 173.8 171.0 169.2 167.5 167.6 167.4 168.9 170.9 35 Miscellaneous manufactures ... 39 1.51 154.7 155.3 153.7 151.6 152.8 151.2 147.3 43.7 144.7 144.2 143.6 143.7 144.9 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.4 625.3 618.8 619.7 619.8 619.0 599.5 588.6 585.0 586.7 585.9 593.1 602.2 608.6 37 Final 390.92 480.8 475.1 476.1 476.4 475.9 464.5 457.3 455.6 456.9 453.0 458.2 466.1 471.3 38 Consumer goods 277.52 327.1 322.5 322.1 320.0 321.3 312.5 306.3 305.8 307.7 305.1 309.2 315.0 318.7 39 Equipment 113.42 153.6 152.6 154.0 156.3 154.6 152.0 151.0 149.8 149.2 147.9 149.0 151.2 152.5 40 Intermediate 116.62 144.6 143.7 143.6 143.4 143.1 135.0 131.3 129.4 129.9 132.9 134.8 136.1 137.4 1. The industrial production series has been revised back to January 1979. NOTE. Published groupings include some series and subtotals not shown sepa- 2. 1972 dollars. rately. For description and historical data, see Industrial Production—1976 Revision (Board of Governors of the Federal Reserve System: Washington, D.C.), December 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • December 1980 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1980 Item 1977 1978 1979 Mar. Apr. May June July Aug. Sept.' Oct. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,677 1,801 1,552 968 789 825 1,078 1,236 1,361 1,564 1,333 2 1-family 1,125 1,183 981 556 473 495 628 781 857 914 817 3 2-or-more-family 551 618 570 412 316 330 450 455 504 650 516 4 Started 1,987 2,020 1,745 1,041 1,030 906 1,223 1,265 1,429' 1,545 1,569 5 1-family 1,451 1,433 1,194 617 628 628 757 869 1,003' 1.058 1.011 6 2-or-more-family 536 587 551 424 402 278 466 396 426' 487 558 7 Under construction, end of period1 ... 1,208 1,310 1,140 1,062 978 911 871 851' 847' 874 n.a. 8 1-family 730 765 639 589 535 495 474 473' 475 502 n.a. 9 2-or-more-family 478 546 501 473 443 416 397 378' 372' 372 n.a. 10 Completed 1,656 1,868 1,855 1,669 1,897 1,536 11,,446699 1,502' 1,402' 1,215 n.a. 11 1-family 1,258 1,369 1,286 1,093 1,135 970 888866 876' 915 732 n.a. 12 2-or-more-family 399 499 570 576 762 566 583 626' 487' 483 n.a. 13 Mobile homes shipped 277 276 277 226 201 162 163 215 206 238 n.a. Merchant builder activity in 1-family units 14 Number sold 820 818 709 458 345 458 544 646' 638' 573 548 15 Number for sale, end of period1 408 419 402 377 364 351 340 333 330' 336 335 Price (thousands of dollars)2 Median 16 Units sold 49.0 55.8 62.7 64.8 62.8 63.2 65.4 64.4' 63.2' 68.8 65.7 Average 17 Units sold 54.4 62.7 71.9 71.1 74.1 73.1 76.3 76.8' 76.2' 80.7 77.5 EXISTING UNITS (1-family) 18 Number sold 3,572 3,905 3,742 2,750 2,420 2,310 2,480 2,920 33,,003300 33,,338800 33,,330000 Price of units sold (thous. of dollars)2 19 Median 42.8 48.7 55.5 59.5 60.4 61.2 63.4 64.1 64.9 64.2 62.7 20 Average 47.1 55.1 64.0 69.4 70.6 71.2 75.7 75.7 76.2 75.5 73.4 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 173,976 205,457 228,948 237,132 225,833 218,909 215,021 214,230 215,084' 224,072 224,999 22 Private 135,799 159,555 179,948 180,616 171,488 164,791 161,349 158,921 162,576' 168,624 169,853 23 Residential 80,957 93,423 99,029 93,991 83,467 76,957 73,360 74,954 79,788' 85,857 87,488 24 Nonresidential, total 54,842 66,132 80,919 86,625 88,021 87,834 87,989 83,967 82,788' 8822,,776677 82,365 Buildings 25 Industrial 7,713 10,993 14,953 13,916 13,611 14,197 15,022 13,267 13,046 13,102 12,581 26 Commercial 14,789 18,568 24,924 29,911 30,878 30,149 29,609 28,063 27,993 27,425 27,113 27 Other 6,200 6,739 7,427 8,515 8,220 8,571 8,256 8,115 8,095 8,447 8,755 28 Public utilities and other 26,140 29,832 33,615 34,283 35,312 34,917 35,102 34,522 33,655 33,793 33,916 29 Public 38,172 45,901 49,001 56,516 54,344 54,118 53,672 55,308 52,508 55,448 55,146 30 Military 1,428 1,501 1,641 1,895 2,048 1,671 1,748 1,727 1,841 1,450 1,924 31 Highway 9,380 10,713 11,915 13,606 14,393 13,230 14,012 13,758 10,866 n.a. n.a. 32 Conservation and development 3,862 4,457 4,586 5,686 5,000 5,285 4,241 5,893 4,295 n.a. n.a. 33 Other4 23,502 29,230 30,859 35,329 32,903 33.932 33,671 33,930 35,506 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 ana 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 A49 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted 12 months to 3 months (at annual rate) to 1 month to IIInnndddeeexxx llleeevvveeelll IIIttteeemmm 1979 1980 1980 OOO 111999 ccc 888 ttt 000 ... 11997799 11998800 (((111999666777 OOcctt.. OOcctt.. === 111000000)))111 Dec. Mar. June Sept. June July Aug. Sept. Oct. CONSUMER PRICES2 1 All items 12.2 12.6 13.7 18.1 11.6 7.0 1.0 0.0 .7 1.0 1.0 253.9 2 Commodities 12.4 11.6 12.5 16.1 5.0 12.8 .3 .6 1.2 1.2 .8 240.7 3 Food 9.9 10.2 12.1 3.8 5.6 18.9 .5 1.0 1.8 1.6 .8 262.4 4 Commodities less food 13.6 12.2 12.7 22.1 4.7 10.6 .3 .5 .9 1.1 .8 228.3 5 Durable 9.6 11.3 13.2 7.6 6.8 15.7 .5 .5 1.6 1.6 1.2 218.1 6 Nondurable 18.6 13.4 12.8 39.8 3.5 4.0 .1 .3 .4 .2 .1 239.6 7 Services 11.9 14.1 15.8 20.9 21.6 -.6 1.8 -.8 -.1 .7 1.2 277.9 8 Rent 8.4 8.7 9.0 8.3 10.0 8.6 1.2 .5 .6 1.0 1.0 197.1 9 Services less rent 12.5 14.9 16.9 22.8 23.3 1.8 1.9 -.9 -.2 .7 1.2 293.2 Other groupings 10 All items less food 12.8 13.1 14.2 21.7 13.0 4.6 1.1 -.2 .4 .9 1.0 250.9 11 All items less food and energy 10.1 12.2 13.9 15.7 13.5 5.1 1.1 -.2 .5 .9 1.2 239.7 12 Homeownership 16.8 17.0 25.6 24.1 26.6 -5.6 2.3 -1.8 -.2 .6 2.1 323.8 PRODUCER PRICES 13 Finished goods 12.3 12.5 13.3 19.3 6.7' 12.2 .7 1.5 1.5 -.2 .8 252.2 14 Consumer 13.8 12.9 14.6 21.6 4.9 13.8 .7 1.6 1.8 -.2 .6 253.6 15 Foods 8.6 -1.2 -7.8 36.9 .7 3.8 4.4 -.2 .5 245.9 .5 245.9 16 Excluding foods 17.6 15.2 17.9 34.8 11.3 4.4 .6 .6 .6 -.1 .6 255.0 17 Capital equipment 9.0 11.4 10.0 13.4 11.3 8.5 .7 1.3 .9 -.1 1.4 248.2 18 Intermediate materials3 15.8 11.6 17.0 24.0 5.2 6.4 .8 .5 .5 .5 .6 286.6 Crude materials 19 Nonfood 24.3 20.4 27.8 21.9 -3.9 39.1 -.5 3.2 1.8 3.3 2.5 444.1 20 Food 10.5 12.8 5.7 -16.7 -10.5 96.4 1.1 9.0 9.0 -.4 1.5 279.1 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

A50 Domestic Nonfinancial Statistics • December 1980 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1979 1980 AAccccoouunntt 11997777 11997788 11997799 02 03 04 Q1 02 Q3' GROSS NATIONAL PRODUCT 1 Total 1,899.5 2,127.6 2,368.8 2,329.8 2,396.5 2,456.9 2,520.8 2,521.3 2,586.5 By source 2 Personal consumption expenditures 1,210.0 1,350.8 1,509.8 1,475.9 1,528.6 1,580.4 1,629.5 1,626.6 1,683.3 3 Durable goods 178.8 200.3 213.0 208.7 213.4 216.2 220.2 195.7 208.5 4 Nondurable goods 481.3 530.6 596.9 581.2 604.7 630.7 652.0 654.1 665.8 5 Services 549.8 619.8 699.8 686.0 710.6 733.5 757.3 776.9 808.9 6 Gross private domestic investment 303.3 351.5 387.2 395.4 392.3 387.2 387.7 368.5 348.4 7 Fixed investment 281.3 329.1 369.0 361.9 377.8 381.7 383.0 357.1 365.2 8 Nonresidential 189.4 221.1 254.9 249.1 261.8 265.2 272.6 268.2 270.9 9 Structures 62.6 76.5 92.6 90.5 95.0 100.2 103.3 103.7 102.0 10 Producers' durable equipment 126.8 144.6 162.2 158.6 166.7 165.1 169.4 164.5 168.9 11 Residential structures 91.9 108.0 114.1 112.9 116.0 116.4 110.4 88.9 94.2 12 Nonfarm 88.8 104.4 110.2 109.1 112.0 112.1 105.9 85.3 90.8 13 Change in business inventories 21.9 22.3 18.2 33.4 14.5 5.6 4.7 11.4 -16.8 14 Nonfarm 20.7 21.3 16.5 32.6 12.6 2.1 4.4 12.3 -10.7 15 Net exports of goods and services -9.9 -10.3 -4.6 -8.1 -2.3 -11.9 -13.6 -2.2 21.3 16 Exports 175.9 207.2 257.5 243.7 267.3 280.4 308.1 307.0 313.2 17 Imports 185.8 217.5 262.1 251.9 269.5 292.4 321.7 309.2 291.9 18 Government purchases of goods and services 396.2 435.6 476.4 466.6 477.8 501.2 517.2 528.3 533.6 19 Federal 144.4 152.6 166.6 161.7 162.9 178.4 186.2 193.3 191.4 20 State and local 251.8 283.0 309.8 304.9 314.9 322.8 331.0 335.0 342.2 By major type of product 21 Final sales, total 1,877.6 2,105.2 2,350.6 2,296.4 2.381.9 2,451.4 2,516.1 2,509.9 2,603.3 22 Goods 842.2 930.0 1,030.5 1,018.1 1,036.0 1,056.3 1,086.2 1,079.2 1,099.3 23 Durable 345.9 380.4 423.1 422.4 424.4 420.2 421.5 414.7 426.8 24 Nondurable 496.3 549.6 607.4 595.7 611.6 636.1 664.8 664.5 672.5 25 Services 866.4 969.3 1,085.1 1,064.2 1,100.6 1,134.0 1,169.5 1,199.9 1,240.8 26 Structures 190.9 228.2 253.2 247.5 259.8 266.6 265.1 242.2 246.4 27 Change in business inventories 21.9 22.3 18.2 33.4 14.5 5.6 4.7 11.4 -16.8 28 Durable goods 11.9 13.9 13.0 24.3 7.3 1.8 -9.3 6.1 -5.1 29 Nondurable goods 10.0 8.4 5.2 9.1 7.2 3.8 14.0 5.3 -11.7 30 MEMO: Total GNP in 1972 dollars 1,340.5 1,399.2 1,431.6 1,422.3 1,433.3 1,440.3 1,444.7 1,408.6 1,411.7 NATIONAL INCOME 31 Total 1,525.8 1,724.3 1,924.8 1,897.9 1,941.9 1,990.4 2,035.4 2,024.6 2,068.6 32 Compensation of employees 1,156.9 1,304.5 1,459.2 1,439.7 1,472.9 1,513.2 1,555.2 1,567.2 1,591.5 33 Wages and salaries 984.0 1,103.5 1,227.4 1,211.5 1,238.0 1,270.7 1,303.6 1,310.4 1,329.7 34 Government and government enterprises 201.3 218.0 233.5 231.2 234.4 240.2 243.5 247.5 251.0 35 Other 782.7 885.5 993.9 980.3 1,003.6 1,030.5 1,060.1 1,062.9 1,078.7 36 Supplement to wages and salaries 172.9 201.0 231.8 228.2 234.8 242.5 251.6 256.8 261.9 37 Employer contributions for social insurance 81.2 94.6 109.1 107.9 109.9 113.0 117.2 118.1 119.7 38 Other labor income 91.8 106.5 122.7 120.3 124.9 129.6 134.4 138.7 142.2 39 Proprietors' income1 100.2 116.8 130.8 129.3 130.3 134.5 130.0 120.5 125.6 40 Business and professional1 80.5 89.1 98.0 95.5 99.4 102.1 102.3 97.4 101.5 41 Farm1 19.6 27.7 32.8 33.7 30.9 32.5 27.7 23.1 24.1 42 Rental income of persons2 24.7 25.9 26.9 26.8 26.6 27.0 27.0 27.3 27.8 43 Corporate profits1 150.0 167.7 178.2 176.6 180.8 176.4 175.0 152.8 158.3 44 Profits before tax3 177.1 206.0 236.6 227.9 242.3 243.0 260.4 204.8 222.4 45 Inventory valuation adjustment -15.2 -25.2 -41.8 -36.6 -44.0 -46.5 -63.2 -27.4 -35.9 46 Capital consumption adjustment -12.0 -13.1 -16.7 -14.7 -17.6 -20.1 -22.2 -24.6 -28.2 47 Net interest 94.0 109.5 129.7 125.6 131.5 139.2 148.1 156.8 165.3 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.49. 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 A51 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1979 1980 11997777 11997788 11997799 Q2 Q3 Q4 Q1 02 03' PERSONAL INCOME AND SAVING 1 Total personal income 1,531.6 1,717.4 1,924.2 1,892.5 1,946.6 2,005.0 2,057.4 2,080.5 2,144.6 2 Wage and salary disbursements 984.0 1,103.3 1,227.6 1,212.4 1,238.1 1,270.5 1,303.7 1,310.4 1,329.2 3 Commodity-producing industries 343.1 387.4 435.2 431.7 438.3 447.8 460.0 454.5 456.4 4 Manufacturing 266.0 298.3 330.9 328.5 331.9 338.3 347.2 342.0 343.7 5 Distributive industries 239.1 269.4 300.8 295.8 304.0 312.4 320.1 320.8 325.8 6 Service industries 200.5 228.7 257.9 252.8 261.3 270.2 280.0 287.6 296.0 7 Government and government enterprises 201.3 217.8 233.7 232.1 234.5 240.1 243.6 247.5 251.0 8 Other labor income 91.8 106.5 122.7 120.3 124.9 129.6 134.4 138.7 142.2 9 Proprietors' income1 100.2 116.8 130.8 129.3 130.3 134.5 130.0 120.5 125.6 10 Business and professional1 80.5 89.1 98.0 95.5 99.4 102.1 102.3 97.4 101.5 11 Farm1 19.6 27.7 32.8 33.7 30.9 32.5 27.7 23.1 24.1 12 Rental income of persons2 24.7 25.9 26.9 26.8 26.6 27.0 27.0 27.3 27.8 13 Dividends 42.1 47.2 52.7 52.3 52.8 54.4 56.7 58.6 59.7 14 Personal interest income 141.7 163.3 192.1 187.6 194.4 205.5 217.2 228.8 236.4 15 Transfer payments 208.4 224.1 252.0 243.6 260.8 266.5 274.9 282.5 312.2 16 Old-age survivors, disability, and health insurance benefits 105.0 116.3 132.4 127.1 138.7 140.0 142.0 143.6 161.4 17 LESS: Personal contributions for social insurance . 61.3 69.6 80.7 79.8 81.2 82.9 86.6 86.3 88.4 18 EQUALS: Personal income 1,531.6 1,717.4 1,924.2 1,892.5 1,946.6 2,005.0 2,057.4 2,080.5 2,144.6 19 LESS: Personal tax and nontax payments 226.4 259.0 299.9 290.7 306.6 321.9 320.0 324.6 334.0 20 EQUALS: Disposable personal income 1,305.1 1,458.4 1,624.3 1,601.7 1,640.0 1,683.1 1,737.4 1,755.9 1,810.7 21 LESS: Personal outlays 1,240.2 1,386.4 1,550.5 1,515.8 1,569.7 1,623.4 1,672.9 1,669.5 1,725.7 22 EQUALS: Personal saving 65.0 72.0 73.8 85.9 70.3 59.7 64.4 86.3 84.9 MEMO: Per capita (1972 dollars) 23 Gross national product 6,181 6,402 6,494 6,459 6,494 6,509 6,514 6,336 6,333 24 Personal consumption expenditures 3,974 4,121 4,194 4,155 4,195 4,227 4,222 4,097 4,136 25 Disposable personal income 4,285 4,449 4,512 4,510 4,501 4,502 4,502 7,900 8,121 26 Saving rate (percent) 5.0 4.9 4.5 5.4 4.3 3.5 3.7 4.9 4.7 GROSS SAVING 27 Gross saving 276.1 324.6 363.9 374.3 367.3 351.9 346.6 345.5 345.4 28 Gross private saving 295.6 324.9 349.6 360.5 352.1 340.7 343.7 374.0 378.6 29 Personal saving 65.0 72.0 73.8 85.9 70.3 59.7 64.4 86.3 84.9 30 Undistributed corporate profits1 35.2 36.0 32.9 35.6 34.0 25.9 15.9 16.6 13.5 31 Corporate inventory valuation adjustment -15.2 -25.2 -41.8 -36.6 -44.0 -46.5 -63.2 -27.4 -35.9 Capital consumption allowances 32 Corporate 121.3 132.9 147.7 145.1 150.4 155.3 159.6 163.9 169.6 33 Noncorporate 74.1 84.0 95.3 93.9 97.5 99.8 103.7 107.1 110.1 34 Wage accruals less disbursements .5 35 Government surplus, or deficit (-), national income and product accounts -19.5 -.3 13.2 12.7 14.0 10.0 1.7 -29.6 -34.4 36 Federal -46.3 -27.7 -11.4 -7.0 -11.3 -15.7 -22.9 -49.2 -58.4 37 State and local 26.8 27.4 24.6 19.7 25.3 25.8 24.6 19.5 23.9 38 Capital grants received by the United States, net .. 1.1 1.1 1.1 1.1 1.2 1.2 1.2 39 Gross investment 283.6 327.9 367.6 373.1 375.6 359.1 357.5 350.9 355.0 40 Gross private domestic 303.3 351.5 387.2 395.4 392.3 387.2 387.7 368.5 348.4 41 Net foreign -19.6 -23.5 -19.5 -22.3 -16.7 -28.1 -30.2 -17.6 6.6 42 Statistical discrepancy 7.5 3.3 2.9 -1.3 8.3 7.2 11.0 5.4 9.7 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 International Statistics • December 1980 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1979 1980 IItteemm ccrreeddiittss oorr ddeebbiittss 11997777 11997788 11997799 02 03 04 Q1 Q2 P 1 Balance on current account -14,068 -14,259 -788 -1,493 1,099 -1,802 -2,635 -2,500 L --6611 --22,,990099 448866 --22,,445533 --773388 3 Merchandise trade balance2 -30,873 -33,759 -29,469 -8,070 -7,060 -9,225 -10,875 -7,643 4 Merchandise exports 120,816 142,054 182,055 42,815 47,198 50,237 54,708 54,710 5 Merchandise imports -151,689 -175,813 -211,524 -50,885 -54,258 -59,462 -65,583 -62,353 6 Military transactions, net 1,628 886 -1,274 -102 -443 -700 -922 -1,074 7 Investment income, net3 17,988 20,899 32,509 7,271 9,319 8,883 10,094 6,355 8 Other service transactions, net 1,794 2,769 3,112 791 690 792 880 1,104 9 MEMO: Balance on goods and services3-4 -9,464 -9,204 4,878 -110 2,506 -250 -823 -1,258 10 Remittances, pensions, and other transfers -1,830 -1,884 -2,142 -484 -529 -665 -565 -557 11 U.S. government grants (excluding military) -2,775 -3,171 -3,524 -899 -878 -887 -1,247 -685 12 Change in U.S. government assets, other than official reserve assets, net (increase, -) -3,693 -4,644 -3,783 -991 -766 -925 -1,467 -1,280 13 Change in U.S. official reserve assets (increase, -) -375 732 -1,106 343 2,779 -644 -3,246 473 14 Gold -118 -65 -65 0 0 -65 0 0 15 Special drawing rights (SDRs) -121 1,249 -1,136 6 0 0 -1,152 112 16 Reserve position in International Monetary Fund -294 4,231 -189 -78 -52 27 -34 -99 17 Foreign currencies 158 -4,683 283 415 2,831 -606 -2,060 460 18 Change in U.S. private assets abroad (increase, -)3 -31,725 -57,279 -56,858 -14,631 -27,228 -11,918 -7,976 -25,554 19 Bank-reported claims -11,427 -33,631 -25,868 -7,839 -16,997 -7,213 -274 -20,913 20 Nonbank-reported claims -1,940 -3,853 -2,029 935 -932 410 -1,474 n.a. 21 U.S. purchase of foreign securities, net -5,460 -3,450 -4,643 -513 -2,143 -986 -765 -1,325 22 U.S. direct investments abroad, net3 -12,898 -16,345 -24,318 -7,214 -7,156 -4,129 -5,463 -3,316 23 Change in foreign official assets in the United States (increase, +) 36,574 33,292 -14,270 -10,095 5,789 -1,221 -7,215 7,816 24 U.S. Treasury securities 30,230 23,523 -22,356 -12,859 5,024 -5,769 -5,357 4,315 25 Other U.S. government obligations 2,308 666 465 94 335 41 801 247 26 Other U.S. government liabilities5 1,159 2,220 -714 122 216 -924 181 1,035 27 Other U.S. liabilities reported by U.S. banks 773 5,488 7,219 2,354 56 4,881 -3,185 1,559 28 Other foreign official assets6 2,105 1,395 1,116 195 158 550 345 660 29 Change in foreign private assets in the United States (increase, +)3 14,167 30,804 51,845 16,502 19,152 5,246 14,409 -2,056 30 U.S. bank-reported liabilities 6,719 16,259 32,668 12,082 13,185 400 6,355 -4,334 31 U.S. nonbank-reported liabilities 473 1,640 1,692 579 606 1,050 683 n.a. 32 Foreign private purchases of U.S. Treasury securities, net 534 2,197 4,830 -120 1,466 920 3,278 -1,226 33 Foreign purchases of other U.S. securities, net 2,713 2,811 2,942 1,149 677 313 2,427 1,350 34 Foreign direct investments in the United States, net3 ... 3,728 7,896 9,713 2,812 3,217 2,564 1,666 2,155 35 Allocation of SDRs 0 0 1,139 0 0 0 1,152 0 36 Discrepancy -880 11,354 23,822 10,364 -825 11,264 6,978 23,100 37 Owing to seasonal adjustments 11,,116677 --33,,664411 22,,440000 --110011 11,,447733 38 Statistical discrepancy in recorded data before seasonal adjustment -880 11,354 23,822 9,197 2,816 8,864 7,079 21,627 MEMO: Changes in official assets 39 U.S. official reserve assets (increase, -) -375 732 -1,106 343 2,779 -644 -3,246 473 40 Foreign official assets in the United States (increase, +) 35,416 31,072 -13,556 -10,216 5,573 -297 -7,396 6,781 41 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 23 above) 6,351 -1,137 5,508 238 1,676 4,955 2,930 4,671 42 Transfers under military grant programs (excluded from lines 4, 6, and 11 above) 204 236 305 49 88 139 144 152 1. Seasonal factors are no longer calculated for lines 13 through 42. 5. Primarily associated with military sales contracts and other transactions ar- 2. Data are on an international accounts (IA) basis. Differs from the census ranged with or through foreign official agencies. basis primarily because the IA basis includes imports into the U.S. Virgin Islands, 6. Consists of investments in U.S. corporate stocks and in debt securities of and it excludes military exports, which are part of line 6. private corporations and state and local governments. 3. Includes reinvested earnings of incorporated affiliates. 4. Differs from the definition of "net exports of goods and services" in the NOTE. Data are from Bureau of Economic Analysis, Survey of Current Business national income and product (GNP) account. The GNP definition makes various (U.S. Department of Commerce). adjustments to merchandise trade and service transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Trade and Reserve Assets A53 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1980 IItteemm 11997777 11997788 11997799 Apr. May June July Aug. Sept. Oct. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 121,150 143,578 181,637 18,468 17,678 18,642 18,075 19,103 18,701 19,088 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 147,685 171,978 206,326 20,588 19,257r 19,893 18,995 19,236 19,465 20,060 3 Trade balance -26,535 -28,400 -24,690 -789 -2,762 -1,251 -920 -132 -764 -972 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 the basis. Effective January 1978, major changes were made in coverage, reporting, Virgin Islands (largely oil for a refinery on St. Croix), which are not included in and compiling procedures. The international-accounts-basis data adjust the Census 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 1980 TTyyppee 11997777 11997788 11997799 May June July Aug. Sept. Oct. Nov. 1 Total1 19,312 18,650 18,956 21,917 21,943 21,845 22,691 22,994 23,967 25,673 2 Gold stock, including Exchange Stabilization Fund1 11,719 11,671 11,172 11,172 11,172 11,172 11,172 11,168 11,163 11,162 3 Special drawing rights2-3 2,629 1,558 2,724 3,744 3,782 3,842 4,009 4,007 3,939 3,954 4 Reserve position in International Monetary Fund2 4,946 1,047 1,253 1,157 1,385 1,410 1,564 1,665 1,671 1,822 5 Foreign currencies4 5 18 4,374 3,807 5,844 5,604 5,421 5,946 6,154 7,194 8,735 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; $1,139 million on Jan. 1, 1979; and $1,152 million Jan. 1, 1980; plus net 2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based transactions in SDRs. on a weighted average of exchange rates for the currencies of 16 member countries. 4. Beginning November 1978, valued at current market exchange rates. The U.S. SDR holdings and reserve position in the IMF also are valued on this 5. Includes U.S. government securities held under repurchase agreement against basis beginning July 1974. receipt of foreign currencies, if any. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • December 1980 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1980 Asset account 1977 19781 1979 Mar. Apr. May June July Aug. Sept.P All foreign countries 1 Total, all currencies 258,897 306,795 364,233 371,533 376,146 378,899 376,722 377,813 386,200 385,011 2 Claims on United States 11,623 17,340 32,302 35,682 34,183 35,606 29,069 29,053 36,821 29,320 3 Parent bank 7,806 12,811 25,929 28,249 26,290 26,139 18,565 17,525 26,684 19,676 4 Other 3,817 4,529 6,373 7,433 7,893 9,467 10,504 11,528 10,137 9,644 5 Claims on foreigners 238,848 278,135 317,175 319,795 325,623 326,340 330,171 331,301 332,317 338,388 6 Other branches of parent bank 55,772 70,338 79,661 80,523 79,500 76,317 76,061 75,196 72,417 73,784 7 Banks 91,883 103,111 123,395 126,069 130,198 130,313 132,587 134,624 136,484 139,458 8 Public borrowers2 14,634 23,737 26,072 25,509' 25,239' 25,438' 25,632' 25,474' 26,112 26,494 9 Nonbank foreigners 76,560 80,949 88,047 87,694r 90,686' 94,272' 95,891' 96,007' 97,304 98,654 10 Other assets 8,425 11,320 14,756 16,056 16,340 16,953 17,482 17,459 17,062 17,303 11 Total payable in U.S. dollars 193,764 224,940 267,711 276,760 277,791 277,542 275,232' 275,719 284,363 281,444 12 Claims on United States 11,049 16,382 31,171 34,502 32,899 34,314 27,867 27,688 35,508 28,117 13 Parent bank 7,692 12,625 25,632 27,897 25,920 25,778 18,254 17,209 26,363 19,405 14 Other 3,357 3,757 5,539 6,605 6,979 8,536 9,613 10,479 9,145 8,712 15 Claims on foreigners 178,896 203,498 229,118 233,763 235,953 234,159 238,213 239,271 240,012 244,910 16 Other branches of parent bank 44,256 55,408 61,525 63,404 61,768 58,908 58,456 57,813 54,965 56,584 17 Banks 70,786 78,686 96,243 99,383 103,256 102,693 104,902 106,313 107,976 111,512 18 Public borrowers2 12,632 19,567 21,629 21,382' 20,998' 21,221' 21,382' 21,233' 21,785 22,059 19 Nonbank foreigners 51,222 49,837 49,721 49,594' 49,931' 51,337' 53,473' 53,912' 55,286 54,755 20 Other assets 3,820 5,060 7,422 8,495 8,939 9,069 9,152' 8,760 8,843 8,417 United Kingdom 21 Total, all currencies 90,933 106,593 130,873 136,654 138,915 138,930 139,066 135,669 136,467 136,872 22 Claims on United States 4,341 5,370 11,117 11,990 11,533 11,399 9,157 8,366 8,465 8,022 23 Parent bank 3,518 4,448 9,338 9,838 9,300 9,140 6,870 5,705 6,023 5,788 24 Other 823 922 1,779 2,152 2,233 2,259 2,287 2,661 2,442 2,234 25 Claims on foreigners 84,016 98,137 115,123 119,290 122,105 121,851 124,059 120,914 121,805 122,825 26 Other branches of parent bank 22,017 27,830 34,291 35,536 36,015 34,305 34,824 32,231 31,607 30,792 27 Banks 39,899 45,013 51,343 52,509 54,020 54,076 54,855 54,824 55,530 56,911 28 Public borrowers2 2,206 4,522 4,919 5,860 5,578 5,591 5,897 5,710 5,865 6,005 29 Nonbank foreigners 19,895 20,772 24,570 25,385 26,492 27,879 28,483 28,149 28,803 29,117 30 Other assets 2,576 3,086 4,633 5,374 5,277 5,680 5,850 6,389 6,197 6,025 31 Total payable in U.S. dollars 66,635 75,860 94,287 99,711 100,628 98,809 98,013 93,158 94,376 94,355 32 Claims on United States 4,100 5,113 10,746 11,620 11,071 10,988 8,790 7,831 7,954 7,656 33 Parent bank 3,431 4,386 9,297 9,778 9,179 9,059 6,810 5,629 5,960 5,744 34 Other 669 727 1,449 1,842 1,892 1,929 1,980 2,202 1,994 1,912 35 Claims on foreigners 61,408 69,416 81,294 85,452 86,818 85,013 86,404 82,434 83,361 83,933 36 Other branches of parent bank 18,947 22,838 28,928 30,204 29,980 28,466 28,692 26,083 25,565 24,907 37 Banks 28,530 31,482 36,760 37,768 39,159 38,594 39,050 38,471 39,070 40,817 38 Public borrowers2 1,669 3,317 3,319 4,589 4,277 4,277 4,396 4,280 4,327 4,419 39 Nonbank foreigners 12,263 11,779 12,287 12,891 13,402 13,676 14,266 13,600 14,399 13,790 40 Other assets 1,126 1,331 2,247 2,639 2,739 2,808 2,819 2,893 3,061 2,766 Bahamas and Caymans 41 Total, all currencies 79,052 91,735 108,977 114,798 115,840 116,538 115,276 120,243 128,429 123,076 42 Claims on United States 5,782 9,635 19,124 21,832 20,060 21,406 17,682 18,240 25,846 18,293 43 Parent bank 3,051 6,429 15,196 17,323 15,269 15,334 10,660 10,497 19,129 11,839 44 Other 2,731 3,206 3,928 4,509 4,791 6,072 7,022 7,743 6,717 6,454 45 Claims on foreigners 71,671 79,774 86,718 89,326 91,683 90,995 93,432 98,001 98,463 100,832 46 Other branches of parent bank 11,120 12,904 9,689 13,659 13,438 12,454 12,977 14,362 13,160 14,870 47 Banks 27,939 33,677 43,171 44,485 47,212 46,782 48,012 50,780 51,712 52,476 48 Public borrowers2 9,109 11,514 12,905 11,334 11,355 11,636 11,554 11,627 12,054 12,076 49 Nonbank foreigners 23,503 21,679 20,953 19,848 19,678 20,123 20,889 21,232 21,537 21,410 50 Other assets 1,599 2,326 3,135 3,640 4,097 4,137 4,162 4,002 4,120 3,951 51 Total payable in U.S. dollars 73,987 85,417 102,368 108,599 109,728 110,872 109,715' 114,474 122,581 117,142 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A55 3.13 Continued 1980 LLiiaabbiilliittyy aaccccoouunntt 1977 19781 1979 Mar. Apr. May June July Aug. Sept.P All foreign countries 52 Total, all currencies 258,897 306,795 364,233 371,533 376,146 378,899 376,722 377,813 386,200 385,011 53 To United States 44,154 57,948 66,618 67,654 69,570 73,262 76,296 83,150 87,466 83,666 54 Parent bank 24,542 28,590 24,462 22,413 24,348 26,603 30,918 35,357 37,400 38,049 55 Other banks in United States 12,212 13,968 12,351 12,832 13,089 12,431 11,414 14,724 12,686 56 Nonbanks 17,146 28,188 32,890 32,390 33,570 32,947 36,379 35,342 32,931 57 To foreigners 206,579 238,912 283,344 289,484 291,114 289,755 284,540 279,568 283,950 287,290 58 Other branches of parent bank 53,244 67,496 77,601 76,695 75,096 72,530 72,061 72,067 69,158 70,606 59 Banks 94,140 97,711 122,849 129,254'' 130,676' 130,806' 127,637' 122,709' 130,345 130,569 60 Official institutions 28,110 31,936 35,664 34,890' 35,107' 34,910' 34,141' 33,073' 33,080 33,406 61 Nonbank foreigners 31,085 41,769 47,230 48,645 50,235 51,509 50,701 51,719' 51,367 52,709 62 Other liabilities 8,163 9,935 14,271 14,395 15,462 15,882 15,886 15,095 14,784 14,055 63 Total payable in U.S. dollars 198,572 230,810 273,819 282,715 283,880 285,131 282,578 283,026' 291,606 288,436 64 To United States 42,881 55,811 64,530 65,393 67,215 70,825 73,703 80,629 84,624 80,778 65 Parent bank 24,213 27,519 23,403 21,225 23,102 25,279 29,547 33,977 35,906 36,450 66 Other banks in United States 11,958 13,771 12,004 12,583 12,825 12,161 11,154 14,418 12,450 67 Nonbanks 16,334 27,356 32,164 31,530 32,721 31,995 35,498 34,300 31,878 68 To foreigners 151,363 169,927 201,476 209,174 207,848 205,264 199,873 194,323' 198,780 199,897 69 Other branches of parent bank 43,268 53,396 60,513 61,240 59,423 56,577 56,247 56,206 53,335 55,097 70 Banks 64,872 63,000 80,691 88,018' 87,607' 87,030' 84,291' 78,912' 86,405 84,946 71 Official institutions 23,972 26,404 29,048 28,384r 28,685' 28,360' 26,961' 26,177' 26,165 25,986 72 Nonbank foreigners 19,251 27,127 31,224 31,532 32,133 33,297 32,374 33,028 32,875 33,868 73 Other liabilities 4,328 5,072 7,813 8,148 8,817 9,042 9,002 8,074 8,202 7,761 United Kingdom 74 Total, all currencies 90,933 106,593 130,873 136,654 138,915 138,930 139,066 135,669 136,467 136,872 75 To United States 7,753 9,730 20,986 19,921 20,838 19,877 20,189 21,404 20,583 19,071 76 Parent bank 1,451 1,887 3,104 2,140 2,301 2,118 2,410 3,275 2,542 2,679 77 Other banks in United States 4,232 7,693 6,502 6,382 6,265 6,306 5,567 5,910 5,352 78 Nonbanks 3,611 10,189 11,279 12,155 11,494 11,473 12,562 12,131 11,040 79 To foreigners 80,736 93,202 104,032 110,473 111,375 111,769 111,878 107,739 109,629 112,138 80 Other branches of parent bank ,. 9,376 12,786 12,567 14,799 14,268 13,824 13,767 12,694 13,343 13,345 81 Banks 37,893 39,917 47,620 53,204 53,955 54,309 54,750 51,203 51,452 53,749 82 Official institutions 18,318 20,963 24,202 23,303 23,453 23,628 22,577 21,088 22,600 22,663 83 Nonbank foreigners 15,149 19,536 19,643 19,167 19,699 20,008 20,784 22,754 22,234 22,381 84 Other liabilities 2,445 3,661 5,855 6,260 6,702 7,284 6,999 6,526 6,255 5,663 85 Total payable in U.S. dollars 67,573 77,030 95,449 101,293 101,679 101,170 100,117 95,314' 96,453 96,403 86 To United States 7,480 9,328 20,552 19,381 20,337 19,284 19,498 20,843 19,982 18,415 87 Parent bank 1,416 1,836 3,054 2,089 2,252 2,060 2,315 3,238 2,496 2,620 8 8 8 9 N O o th n e b r a n b k a s n ks in United States 6, ,06,4. 4 3 , , 1 3 4 4 4 8 9 7 , , 8 6 4 5 7 1 1 6 0 , , 3 9 5 4 1 1 1 6 1 , , 3 7 1 6 8 7 1 6 1 , , 2 0 1 1 0 4 1 6 0 , , 2 9 3 5 3 0 1 5 2 , , 4 1 8 1 6 9 1 5 1 , , 8 6 0 7 9 7 1 5 0 , , 2 5 5 4 0 5 90 To foreigners 58,977 66,216 72,397 79,251 78,296 78,278 77,145 71,489' 73,456 75,273 91 Other branches of parent bank 7,505 9,635 8,446 10,894 10,468 10,021 9,758 8,672 9,128 9,261 92 Banks 25,608 25,287 29,424 35,300 34,485 34,488 35,217 31,352 31,726 32,865 93 Official institutions 15,482 17,091 20,192 19,255 19,554 19,558 18,300 16,846' 18,253 18,272 94 Nonbank foreigners 10,382 14,203 14,335 13,802 13,789 14,211 13,870 14,619 14,349 14,875 95 Other liabilities 1,116 1,486 2,500 2,661 3,046 3,608 3,474 2,982 3,015 2,715 Bahamas and Caymans % Total, all currencies 79,052 91,735 108,977 114,798 115,840 116,538 115,276 120,243 128,429 123,076 97 To United States 32,176 39,431 37,719 40,926 41,918 45,617 48,430 54,189 58,876 56,263 98 Parent bank 20,956 20,482 15,267 15,371 17,066 19,170 22,748 26,589 29,189 29,252 1 9 0 9 0 N O o th n e b r a n b k a s n ks in United States I1X1 ,/ o zu o n 1 6 2 , , 0 87 7 6 3 1 5 7 , , 2 2 0 4 4 8 2 4 0 , ,7 7 7 7 7 8 1 5 9 , , 4 4 1 3 7 5 20 5 , , 7 7 2 2 7 0 20 5 , ,1 4 9 8 9 3 2 4 2 , ,7 8 8 2 0 0 2 7 2 , , 4 2 5 2 9 8 2 6 0 , , 1 8 2 8 4 7 101 To foreigners 45,292 50,447 68,598 70,822 70,602 67,972 63,936 63,172 66,594 63,918 102 Other branches of parent bank 12,816 16,094 20,875 22,387 22,470 20,009 20,102 20,409 18,081 17,377 103 Banks 24,717 23,104 33,631 33,792 33,047 32,175 28,918 27,127 34,087 31,756 104 Official institutions 3,000 4,208 4,866 4,958 5,435 5,461 5,096 5,525 4,119 4,351 105 Nonbank foreigners 4,759 7,041 9,226 9,685 9,650 10,327 9,820 10,111 10,307 10,434 106 Other liabilities 1,584 1,857 2,660 3,050 3,320 2,949 2,910 2,882 2,959 2,895 107 Total payable in U.S. dollars 74,463 87,014 103,460 110,123 111,486 112,509 111,494 116,182 124,017 118,473 1. In May 1978 the exemption level for branches required to report was increased, rowers, including corporations that are majority owned by foreign governments, 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

A56 International Statistics • December 1980 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1980 IItteemm 11997777 11997788 11997799'' Apr/ May' June' 1 July' Aug. Sept.P Oct.P 1 Total1 131,097 162,589 149,451 140,501 143,465 149,094 152,982 154,579 156,815 157,105 By type 2 Liabilities reported by banks in the United States2 18,003 23,290 30,475 27,999 28,566 28,940 29,201 29,449 30,929 28,718 3 U.S. Treasury bills and certificates3 47,820 67,671 47,666 40,527 42,731 45,907 47,982 49,811 49,361 50,392 U.S. Treasury bonds and notes 4 Marketable 32,164 35,894 37,590 37,643 38,029 39,745 40,507 39,762 40,760 41,363 5 Nonmarketable4 20,443 20,970 17,387 16,384 16,184 15,954 15,954 15,654 15,254 15,254 6 U.S. securities other than U.S. Treasury securities5 12,667 14,764 16,333 17,948 17,955 18,548 19,338 19,903 20,511 21,378 By area 7 Western Europe1 70,748 93,089 85,602 74,169 74,174 75,246 78,141 78,424 76,943 75,964 8 Canada 2,334 2,486 1,898 1,903 2,134 2,157 1,907 2,156 1,911 1,736 9 Latin America and Caribbean 4,649 5,046 6,291 5,899 5,955 5,932 6,276 6,049 6,611 6,008 10 Asia 50,693 58,817 52,763 54,480 57,382 62,164 62,989 64,191 67,601 68,891 11 Africa 1,742 2,408 2,412 3,316 2,889 2,694 2,930 3,281 3,232 3,431 12 Other countries6 931 743 485 734 931 901 739 478 517 1,075 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 in of foreign countries. 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 1979 1980 IItteemm 11997777 11997788'' Sept.' Dec.' Mar. June Sept.P 1 Banks' own liabilities 925 2,363 2,401 1,868 2,237 2,580' 2,688 2 Banks' own claims1 2,356 3,682 3,024 2,448 2,812 2,994 3,161 3 Deposits 941 1,795 1,376 1,003 1,212 1,048 1,120 4 Other claims 1,415 1,887 1,648 1,445 1,600 1,946 2,040 5 Claims of banks' domestic customers2 335588 660099 558822 11,,006600'' 779988'' 559955 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

Nonbank-Reported Data A57 3.16 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1980 Holder and type of liability 1977 1978 1979 Apr. Mayr June July Aug. Sept. 1 All foreigners 126,168 166,816' 187,376' 181,100' 184,309 187,012 188,354 201,388' 191,469 2 Banks' own liabilities 78,718' 117,183' 115,770' 116,348 116,811 116,645 128,246' 118,555 3 Demand deposits 18,996 19,218' 23,325' 22,319 22,511 25,967 22,138 22,511 22,473 4 Time deposits1 11,521 12,431' 13,627' 12,627 12,678 12,778 12,899 13,158 13,826 5 Other2 9,693 16,392' 15,166' 16,027 16,774 18,737 18,721' 17,945 6 Own foreign offices3 37,376' 63,839' 65,658' 65,133 61,292 62,871 73,856' 64,311 7 Banks' custody liabilities4 88,098 70,193 65,329' 67,961 70,201 71,708 73,142 72,913 8 U.S. Treasury bills and certificates5 48,906 68,202 48,573 42,596' 45,523 48,193 49,627 51,505' 50,731 9 Other negotiable and readily transferable instruments6 17,396 19,270 19,944 19,645 19,433 19,349 19,054' 19,671 10 Other 2,499 2,350 2,790 2,793 2,575 2,732 2,584 2,511 11 Nonmonetary international and regional organizations7 3,274 2,607 2,351 2,377' 3,212 3,504 2,903 2,820' 2,549 12 Banks' own liabilities 906 709 693' 377 847 607 501' 476 13 Demand deposits 231 330 260 241 144 99 214 171 141 14 Time deposits1 139 84 151 93 92 93 101 100 15 Other2 492 298 359' 657 299 229' 235 16 Banks' custody liabilities4 1,701 1,643 1,684' 2,835 2.657 2,296 2,319 2.073 17 U.S. Treasury bills and certificates 706 201 102 451' 1,519 1,106 604 644' 316 18 Other negotiable and readily transferable instruments6 1,499 1,538 1,233 1,317 1,551 1,692 I,675' 1,757 19 Other 1 2 0 0 0 0 0 0 20 Official institutions8 65,822 90,706 78,142' 68,526' 71,297 74,848 77,183 79,260' 80,291 21 Banks' own liabilities 12,129 18,228' 14,623' 15,442 16,341 17,061 17,591' 18,560 22 Demand deposits 3,528 3,390 4,704 4,734 4,484 5,042 4,218 3,898 4,350 23 Time deposits1 1,797 2,550 3,041 2,392 2,591 2,670 2,695 2,959 3,487 24 Other2 6,189 10,483' 7,497' 8,367 8,628 10,148 10,735 10,724 25 Banks' custody liabilities4 78,577 59,914 53,903 55,854 58,507 60,122 61,669' 61,731 26 U.S. Treasury bills and certificates5 47,820 67,415 47,666 40,527 42,731 45,907 47,982 49,811 48,361 27 Other negotiable and readily transferable instruments6 10,992 12,196 13,341 13,084 12,554 12,092 II,807 12,307 28 Other 170 52 35 40 45 48 52 63 29 Banks9 57,483' 88,357' 92,061' 92,049 89,661 90,328 100,977' 89,953 30 Banks' own liabilities 52,693' 83,357' 86,246' 86,221 84,270 84,846 95,664' 84,712 31 Unaffiliated foreign banks 15,317' 19,517' 20,588' 21,088 22,977 21,975 21,808' 20,401 32 Demand deposits 10,933 11,257' 13,274' 12,681 13,003 14,986 12,974 13,427 12,992 33 Time deposits1 2,040 1,443' 1,680' 1,498 1,423 1,479 1,544 1,514 1,404 34 Other2 2,617' 4,563' 6,410' 6,662 6,512 7,457 6,867' 6,005 35 Own foreign offices3 37,376' 63,839' 65,658' 65,133 61,292 62,871 73,856' 64,311 36 Banks' custody liabilities4 4,790 5,000 5,815 5,828 5,392 5,482 5,313 5,241 37 U.S. Treasury and certificates 141 300 422 771 765 594 557 577 361 38 Other negotiable and readily transferable instruments6 2,425 2,405 2,462 2,490 2,522 2,395 2,435 2,533 39 Other 2,065 2,173 2,582 2,574 2,277 2,530 2,301 2,347 40 Other foreigners 14,736 16,020 18,526 18,135' 17,752 18,999 17,940 18,330 18,676 41 Banks' own liabilities 12,990 14,890 14,207' 14,309 15,353 14,131 14,490 14,808 42 Demand deposits 4,304 4,242 5,087 4,663 4,880 5,840 4,732 5,014 4,991 43 Time deposits 7,546 8,353 8,755 8,645 8,576 8,537 8,566 8,585 8,836 44 Other2 394 1,048 900' 853 977 833 891 981 45 Banks' custody liabilities4 3,030 3,636 3,928 3,443 3,646 3,809 3,841' 3,868 46 U.S. Treasury bills and certificates 240 285 382 847 508 586 484 473 693 47 Other negotiable and readily transferable instruments6 2,481 3,131 2,908 2,755 2,806 3,170 3,137 3.074 48 Other 264 123 173 180 254 154 231 100 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 11,007 10,974 11,670 11,685 11,773 10,500 10,433 10,704 1. Excludes negotiable time certificates of deposit, which are included in "Other 5. Includes nonmarketable certificates of indebtedness and Treasury bills issued negotiable and readily transferable instruments." Data for time deposits before to official institutions of foreign countries. April 1978 represent short-term only. 6. Principally bankers acceptances, commercial paper, and negotiable time cer- 2. Includes borrowing under repurchase agreements. tificates of deposit. 3. U.S. banks: includes amounts due to own foreign branches and foreign sub- 7. Principally the International Bank for Reconstruction and Development, and sidiaries consolidated in "Consolidated Report of Condition" filed with bank reg- the Inter-American and Asian Development Banks. ulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign 8. Foreign central banks and foreign central governments and the Bank for banks: principally amounts due to head office or parent foreign bank, and foreign International Settlements. branches, agencies or wholly owned subsidiaries of head office or parent foreign 9. Excludes central banks, which are included in "Official institutions." bank. 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

A58 International Statistics • December 1980 3.16 LIABILITIES TO FOREIGNERS Continued 1980 AArreeaa aanndd ccoouunnttrryy 11997777 11997788 11997799 Apr. May June July Aug. Sept. Oct.P 1 Total 126,168 166,816' 187,376' 181,100' 184,309' 187,012 188,354 201,388' 191,469 195,386 2 Foreign countries 122,893 164,209' 185,025' 178,723' 181,097' 183,508 185,451 198,568' 188,920 192,651 3 Europe 60,295 85,157' 90,935' 82,822' 82,756' 82,911 83,871 86,072 83,441 83,932 4 Austria 318 513 413 444 352 383 432 390 432 466 5 Belgium-Luxembourg 2,531 2,550' 2,375 2,369 2,795 3,982 3,837 3,673 3,696 3,307 6 Denmark 770 1,946 1,092 615 588 553 534 525 528 493 7 Finland 323 346 398 552 435 438 433 403 311 307 8 France 5,269 9,208 10,433' 11,302' 10,850' 11,272 12,178 12,596 12,332 11,654 9 Germany 7,239 17,286 12,935 5,337' 5,427 6,954 7,626 9,121 7,854 7,556 10 Greece 603 826 635 617 610 626 567 642 591 643 11 Italy 6,857 7,739 7,782 7,429 6,942 5,778 7,138 6,530 5,940 6,764 12 Netherlands 2,869 2,402 2,327 2,022 2,128 2,676 2,830 2,491 2,540 2,555 13 Norway 944 1,271 1,267 1,391 1,221 1,282 1,140 1,040 1,074 1,381 14 Portugal 273 330 557 537 339 391 398 506 571 491 15 Spain 619 870 1,259 1,418 1,386 1,366 1,371 1,491 1,321 1,520 16 Sweden 2,712 3,121 2,005 1,847 1,632 1,999 1,795 1,861 1,826 1,813 17 Switzerland 12,343 18,225 17,954 14,859 14,517 14,736 14,359 14,252 13,524 13,740 18 Turkey 130 157 120 136 136 153 156 147 237 171 19 United Kingdom 14,125 14,265 24,694 27,201' 27,251' 24,192 22,579 22,925 22,813 2233,,778899 20 Yugoslavia 232 254 266 122 144 254 190 135 169 220088 21 Other Western Europe1 1,804 3,440 4,070 4,301 5,606' 5,468 6,006 7,002 7,250 6,815 22 U.S.S.R 98 82 52 33 40 49 36 70 39 28 23 Other Eastern Europe2 236 325 302 319' 354 357 267 271 392 230 24 Canada 4,607 6,969 7,379 8,048 8,201 9,157 9,228 9,187 10,234 9,993 25 Latin America and Caribbean 23,670 31,627' 49,576' 48,922' 48,886' 46,975 49,301 58,306' 48,629 52,156 26 Argentina 1,416 1,484 1,582 1,679 1,903 1,705 1,841 1,880 1,875 2,075 27 Bahamas 3,596 6,752 15,255' 14,419' 16,468' 12,887 13,173 21,179' 13,879 17,259 28 Bermuda i 321 428 430 479 512 576 464 559' 677 604 29 Brazil 1,396 1,125 1,005 1,645 1,527 1,454 1,474 1,378 1,170 1,364 30 British West Indies 3,998 6,014' 11,117' 11,626' 9,571 10,369 12,072 13,422' 11,408 11,895 31 Chile 360 398' 468' 444 416 450 453 475 431 448 32 Colombia 1,221 1,756 2,617 2,905 2,780 2,854 2,932 2,893 2,916 3,038 33 Cuba 6 13 13 23 7 6 6 7 5 5 34 Ecuador 330 322 425 357 337 455 346 818 381 387 35 Guatemala3 416 414 403 350 360 373 372 373 365 36 Jamaica3 52 76 132 138 91 137 100 101 85 37 Mexico 2,876 3,417 4,096 4,345' 4,111 3,918 4,208 4,202 4,121 4,572 38 Netherlands Antilles 196 308 499 411 335 250 332 314 358 393 39 Panama 2,331 2,968 4,483 4,505 4,082 4,176 4,685 4,617 3,894 3,595 40 Peru 287 363 383 392 412 346 350 401 355 380 41 Uruguay 243 231 202 216 208 232 232 241 199 220 42 Venezuela 2,929 3,821 4,192 3,104 3,953 4,707 4,350 3,692 4,405 3,659 43 Other Latin America and Caribbean 2,167 1,760 2,318 1,837 1,775 2,139 1,873 1,755 2,080 1,811 44 30,488 36,492 32,991' 33,595' 36,047' 3399,,446688 3388,,002200 3399,,885500 4411,,881199 4400,,887700 China 45 Mainland 53 67 49 35 30 44 38 37 38 46 46 Taiwan 1,013 502 1,393 1,076 1,396 1,524 1,438 1,552 1,595 1,611 47 Hong Kong 1,094 1,256 1,672 1,857 1,944 2,270 2,186 1,991 2,204 2,148 48 India 961 790 527 576 740 633 494 631 528 485 49 Indonesia 410 449 504 935 670 807 849 632 827 811 50 Israel 559 688 707 560 570 584 488 569 533 530 51 Japan 14,616 21,927 8,907 9,381' 10,790' 12,430 12,547 14,059 15,414 15,354 52 Korea 602 795 993 1,008 988 1,087 1,482 1,473 1,994 1,809 53 Philippines 687 644 800 789 885 883 935 778 814 838 54 Thailand 264 427 277 407 472 405 405 304 517 403 55 Middle-East oil-exporting countries4 8,979 7,534 15,282' 15,265' 15,788' 16,792 15,350 15,791 15,382 14,575 56 Other Asia 1,250 1,414 1,879' 1,704 1,771 2,010 1,808 2,033 1,972 2,261 57 Africa 2,535 2,886 3,239 4,203 3,810 3,708 3,792 4,218 3,902 4,216 58 Egypt 404 404 475 438 376 346 447 347 322 269 59 Morocco 66 32 33 41 31 35 33 47 32 57 60 South Africa 174 168 184 294 316 325 360 404 354 288 61 Zaire 39 43 110 84 86 107 78 38 42 36 62 Oil-exporting countries5 1,155 1,525 1,635 2,462 2,231 2,100 2,094 2,685 2,459 2,911 63 Other Africa 698 715 804 885 768 796 779 697 694 656 64 Other countries 1,297 1,076 904 1,133 1,397 1,290 1,239 936 894 1,484 65 Australia 1,140 838 684 881 1,150 1,019 959 692 613 1,190 66 Allother 158 239 220 252 247 271 281 243 281 294 67 Nonmonetary international and regional organizations 3,274 2,607 2,351 2,377' 3,212' 3,504 2,903 2,820' 2,549 2,734 68 International 2,752 1,485 1,238 1,272' 2,133' 2,394 1,804 1,736' 1,389 1,586 69 Latin American regional 278 808 806 813 790 807 785 800 837 841 70 Other regional6 245 314 308 292 289 302 314 285 323 307 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 Settlements, whicn is included in "Other Western Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A59 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 1980 AArreeaa aanndd ccoouunnttrryy 11997777 11997788 11997799 Apr. May June July Aug. Sept. Oct.P 1 90,206 115,603' 133,855' 133,629' 139,733' 149,447 151,196 163,300' 161,520 162,508 2 Foreign countries 90,163 115,547' 133,823' 133,596' 139,699' 149,413 151,165 163,262' 161,486 162,468 3 Europe 18,114 24,232 28,389 24,553' 26,206 29,707 28,439 29,394' 29,839 29,203 4 Austria 65 140 284 337 292 305 309 280 264 196 5 Belgium-Luxembourg 561 1,200 1,339 1,590 1,471 1,866 1,622 1,881 1,954 1,680 6 Denmark 173 254 147 203 168 167 149 164 180 137 7 Finland 172 305 202 223 273 307 223 215 184 253 8 France 2,082 3,735 3,302 2,811 2,740 2,689 2,582 3,288 3,232 2,551 9 Germany 644 845 1,179' 1,153 1,104 1,131 1,004 1,131 1,018 987 1ft Greece 206 164 154 244 329 346 279 265 221 276 11 Italy 1,334 1,523 1,631 1,462 1,748 1,940 2,295 2,433 2,560 2,836 12 Netherlands 338 677 514 480 457 590 492 628 546 552 13 Norway 162 299 276 170 172 219 270 231 248 335 14 Portugal 175 171 330 247 246 300 346 335' 330 339 15 Spain 722 1,120 1,051 1,020 1,106 1,189 1,011 1,139 1,106 1,112 16 Sweden 218 537 542 618 661 677 534 558 716 736 17 Switzerland 564 1,283 1,165' 826 916 1,237 1,319 1,581 1,337 1,591 18 Turkey 360 300 149 132 151 144 143 137 144 124 19 United Kingdom 8,964 10,172 13,794' 10,490' 11,851 14,026 13,175 12,638' 13,197 12,923 20 Yugoslavia 311 363 611 593 614 658 648 647 682 684 21 Other Western Europe1 86 122 175 330 266 203 170 172 245 226 72 U.S.S.R 413 366 290 257 247 289 531 232 241 257 23 Other Eastern Europe2 566 657 1,254' 1,366 1,394 1,424 1,336 1,438 1,434 1,410 24 Canada 3,355 5,152 4,143 3,923 4,283 5,272 4,654 4,775 5,253 4,614 25 Latin America and Caribbean 45,850 57,567' 68,011' 68,525' 71,656' 74,100 78,703 89,189' 85,655 87,500 26 Argentina 1,478 2,281 4,389' 4,993' 5,117 5,226 5,234 5,393 5,629 5,849 27 Bahamas 19,858 21,555' 18,918' 21,171' 23,295' 25,093 28,710 31,866' 30,167 30,107 28 Bermuda 232 184 496 321 296 175 194 256 216 399 29 Brazil 4,629 6,251 7,720' 8,112 8,064' 8,316 9,002 9,218' 9,639 10,135 30 British West Indies 6,481 9,692 9,822' 8,715' 9,047 8,667 8,637 14,570 11,970 12,680 31 Chile 675 970 1,441' 1,334 1,355 1,367 1,359 1,487 1,627 1,721 32 Colombia 671 1,012 1,614 1,539 1,408 1,435 1,448 1,490 1,492 1,575 33 Cuba 10 0 4 5 4 4 4 3 7 3 34 Ecuador 517 705 1,025 1,011 1,007 1,058 1,051 1,136 1,111 1,157 35 Guatemala3 . 94 134 108 107 120 153 102 105 112 36 Jamaica3 40 47 43 43 36 31 31 33 35 37 Mexico 4,909 5,479 9,099' 9,201' 9,726 10,239 10,660 10,750 11,123 11,674 38 Netherlands Antilles 224 273 248 663 693 728 760 729 710 799 39 Panama 1,410 3,098 6,031 4,643 4,538 4,952 4,552 4,931 4,461 3,972 40 Peru 962 918 652 654 628 711 647 687 671 719 41 Uruguay 80 52 105 84 154 103 91 105 100 100 42 Venezuela 2,318 3,474 4,669' 4,232' 4,528 4,295 4,469 4,737 4,879 4,744 43 Other Latin America and Caribbean 1,394 1,490 1,598 1,696 1,646 1,576 1,700 1,697 1,715 1,721 44 19,236 25,386 30,628' 33,912 34,902 37,261 36,260 36,907 37,619 37,810 China 45 Mainland 10 4 35 48 40 75 68 50 129 126 46 Taiwan 1,719 1,499 1,821 1,626 1,889 2,100 2,224 2,284 2,480 2,318 47 Hong Kong 543 1,479 1,804 2,001 2,362 2,269 2,174 2,063 2,099 1,980 48 India 53 54 92 87 61 83 97 118 84 103 49 Indonesia 232 143 131 166 128 155 205 245 208 214 50 Israel 584 888 990 829 828 1,028 950 1,012 918 1,057 51 Japan 9,839 12,671 16,924' 20,311 20,395 21,606 20,575 21,187 20,663 20,567 52 Korea 2,336 2,282 3,796 4,853 5,057 5,417 5,521 5,462 5,574 5,885 53 Philippines 594 680 737 693 717 780 881 1,019 1,169 1,095 54 Thailand 633 758 935 857 918 922 939 947 947 925 55 Middle East oil-exporting countries4 1,746 3,125 1,548 1,178 978 1,262 1,120 1,040 1,471 1,300 56 Other Asia 947 1,804 1,813 1,263 1,530 1,564 1,506 1,480 1,876 2,240 57 Africa 2,518 2,221 1,797' 1,802' 1,770 2,016 2,166 1,977 2,029 2,157 58 Egypt 119 107 114' 137' 134 95 112 135 123 158 59 Morocco 43 82 103 128 107 121 134 180 166 119 60 South Africa 1,066 860 445 362 465 616 691 469 535 508 61 Zaire 98 164 144 143 108 107 107 98 101 123 62 Oil-exporting countries5 510 452 391 443 325 364 365 349 374 469 63 Other 682 556 600 588 632 714 757 746 729 780 64 Other countries 1,090 988 855 880 883 1,056 943 1,021 1,091 1,185 65 Australia 905 877 673 713 695 860 743 793' 879 942 66 Allother 186 111 182 167 187 196 200 228' 213 243 67 Nonmonetary international and regional organizations6 43 56 32 33 34 34 31 38 34 40 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, Hungaiy, Poland, and Romania. 3. Incluaed 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

A60 International Statistics • December 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 TTyyppee ooff ccllaaiimm 11997777 11997788'' 11997799'' Apr.' May' June July Aug.' Sept. Oct.P 1 Total 9900,,220066 111111122222226666666,,,,,,,888888855555551111111 111111155555553333333,,,,,,,999999955555553333333 111111177777774444444,,,,,,,666666622222221111111''''''' 111111188888887777777,,,,,,,111111133333334444444 2 Banks' own claims on foreigners 111111111111115555555,,,,,,,666666600000003333333 111111133333333333333,,,,,,,888888855555555555555 133,629 139,733 111111144444449999999,,,,,,,444444444444447777777 151,196 163,300 111111166666661111111,,,,,,,555555522222220000000 162,508 3 Foreign public borrowers 11111110000000,,,,,,,222222266666663333333 11111115555555,,,,,,,444444499999991111111 15,166 15,115 11111115555555,,,,,,,777777722222223333333 16,444 17,238 11111118888888,,,,,,,999999933333330000000 18,988 4 Own foreign offices1 44444441111111,,,,,,,666666622222228888888 44444447777777,,,,,,,444444444444447777777 46,399 50,108 55555556666666,,,,,,,000000066666664444444 58,499 64,016 66666661111111,,,,,,,999999933333333333333 61,451 5 Unaffiliated foreign banks 44444440000000,,,,,,,555555544444445555555 44444441111111,,,,,,,000000022222223333333 41,050 42,859 44444444444444,,,,,,,000000066666661111111 42,007 47,528 44444445555555,,,,,,,999999922222220000000 46,526 6 Deposits 5555555,,,,,,,444444422222228888888 6666666,,,,,,,222222222222224444444 6,121 6,507 6666666,,,,,,,555555577777773333333 6,176 7,268 7777777,,,,,,,111111199999997777777 7,093 7 Other 33333335555555,,,,,,,111111111111117777777 33333334444444,,,,,,,777777799999999999999 34,928 36,352 33333337777777,,,,,,,444444488888888888888 35,832 40,261 33333338888888,,,,,,,777777722222224444444 39,434 8 All other foreigners 22222223333333,,,,,,,111111166666667777777 22222229999999,,,,,,,888888899999994444444 31,013 31,652 33333333333333,,,,,,,666666600000000000000 34,245 34,518 33333334444444,,,,,,,777777733333337777777 35,542 9 Claims of banks' domestic customers2 11111111111111,,,,,,,222222244444448888888 22222220000000,,,,,,,000000099999998888888 22222225555555,,,,,,,111111177777774444444''''''' 22222225555555,,,,,,,666666611111113333333 10 Deposits 444444488888880000000 999999955555555555555 999999911111110000000 1111111,,,,,,,222222211111118888888 1111 NNeeggoottiiaabbllee aanndd rreeaaddiillyy ttrraannssffeerraabbllee iinnssttrruummeennttss33 .... 5555555,,,,,,,444444411111114444444 11111113333333,,,,,,,111111122222224444444 11111117777777,,,,,,,444444477777770000000 11111115555555,,,,,,,222222266666665555555 1122 OOuuttssttaannddiinngg ccoolllleeccttiioonnss aanndd ootthheerr ccllaaiimmss44 66,,117766 5555555,,,,,,,333333355555553333333 6666666,,,,,,,000000011111119999999 6666666,,,,,,,777777799999994444444''''''' 9999999,,,,,,,111111133333330000000 13 MEMO: Customer liability on acceptances 11111114444444,,,,,,,999999966666669999999 11111118888888,,,,,,,000000055555558888888 22222222222222,,,,,,,333333300000002222222''''''' 22222223333333,,,,,,,444444400000000000000 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 13,113 21,364 24,208' 24,692 23,195 24,777 21,476' 23,503 n.a. 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 certifbanks: principally amounts due from head office or parent foreign bank, and foreign icates of deposit denominated in U.S. dollars issued by banks abroad. For descripbranches, agencies, or whblly owned subsidiaries of head office or parent foreign tion of changes in data reported by nonbanks, see July 1979 BULLETIN, p. 550. 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 1980 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa Dec. June Sept. Dec.' Mar.' June' Sept./7 1 Total 73,771' 77,742' 87,580' 86,224 85,242 93,070 98,556 By borrower 2 Maturity of 1 year or less1 58,481 60,078' 68,404' 65,215 63,883 71,690 75,565 3 Foreign public borrowers 4,583 4,609' 6,067' 7,038 6,488 6,972 8,612 4 All other foreigners 53,898 55,469' 62,337' 58,177 57,035 64,718 66,954 5 Maturity of over 1 year1 15,289' 17,664' 19,176' 21,009 21,359 21,380 22,991 6 Foreign public borrowers 5,361 6,433 7,652 8,114 8,430 8,512 9,592 7 All other foreigners 9,928' 11,231' 11,524' 12,895 12,929 12,869 13,399 By area Maturity of 1 year or less1 8 Europe 15,176 1144,,003333'' 16,799' 15,214 13,844 17,407 16,849 9 Canada 2,670 2,703 2,471 1,777 1,818 2,013 2,161 10 Latin America and Caribbean 20,990 23,148' 25,690' 24,974 23,178 24,477 27,816 11 Asia 17,579 18,191 21,519' 21,677 23,374 25,749 26,592 12 Africa 1,496 1,438 1,401' 1,080 1,043 1,320 1,394 13 Allother2 569 565 524 493 627 724 754 Maturity of over 1 year1 14 Europe 3,142 3,483' 3,653' 4,140 4,248 4,033 4,714 15 Canada 1,426 1,221 1,364 1,317 1,214 1,199 1,191 16 Latin America and Caribbean 8,464' 10,279 11,771 12,821 13,397 13,902 14,215 17 Asia 1,407 1,884 1,578 1,911 1,728 1,524 2,178 18 Africa 637 614 623 652 620 576 567 19 Allother2 214 183 188 169 152 146 125 1. Remaining time to maturity. 2. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A61 3.20 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banksi Billions of dollars, end of period 19782 1979 1980 AArreeaa oorr ccoouunnttrryy 11997766 11997777 DDeecc.. Sept. Dec. Mar. June Sept. Mar. June Sept.P 1 Total 206.8 240.0 247.5 266.3 264.0 275.6 294.0 303.8 307.6' 328.2' 338.5 2 G-10 countries and Switzerland 100.3 116.4 113.5 124.8 119.1 125.3 135.8 138.4 140.4 154.4' 159.7 3 Belgium-Luxembourg 6.1 8.4 8.4 9.0 9.4 9.7 10.7 11.1 10.8 13.1 13.6 4 France 10.0 11.0 11.7 12.2 11.7 12.7 12.0 11.6 12.0 14.1 13.9 5 Germany 8.7 9.6 9.7 11.3 10.5 10.8 12.8 12.2 11.4 12.7 12.9 6 Italy 5.8 6.5 6.1 6.7 5.7 6.1 6.1 6.4 6.2 6.9 7.2 7 Netherlands 2.8 3.5 3.5 4.4 3.9 4.0 4.7 4.8 4.3 4.5 4.4 8 Sweden 1.2 1.9 2.2 2.1 2.0 2.0 2.3 2.4 2.4 2.7 2.8 9 Switzerland 3.0 3.6 4.3 5.4 4.5 4.8 5.0 4.8 4.4 3.4 3.5 10 United Kingdom 41.7 46.5 44.2 47.3 46.4 50.3 53.7 56.4 57.6' 64.7' 67.3 11 Canada 5.1 6.4 4.9 6.0 5.9 5.5 6.0 6.3 6.8 7.2' 7.9 12 Japan 15.9 18.8 18.5 20.6 19.0 19.5 22.3 22.4 24.7 25.2' 26.2 13 Other developed countries 15.0 18.6 18.7 19.4 18.2 18.2 19.7 19.9' 18.8 20.3 20.4 14 Austria 1.2 1.3 1.5 1.7 1.7 1.8 2.0 2.0 1.7 1.8 1.7 15 Denmark 1.0 1.6 1.9 2.0 2.0 1.9 2.0 2.2 2.1 2.2 2.3 16 Finland 1.1 1.2 1.0 1.2 1.2 1.1 1.2 1.2 1.1 1.3 1.2 17 Greece 1.7 2.2 2.2 2.3 2.3 2.2 2.3 2.4 2.4 2.5 2.6 18 Norway 1.5 1.9 2.1 2.1 2.1 2.1 2.3 2.3 2.4 2.4 2.4 19 Portugal .4 .6 .5 .6 .6 .5 .7 .7 .6 .6 .6 20 Spain 2.8 3.6 3.5 3.5 3.0 3.0 3.3 3.5 3.5 3.9 4.2 21 Turkey 1.3 1.5 1.5 1.5 1.4 1.4 1.4 1.4 1.4 1.4 1.3 22 Other Western Europe .7 .9 1.0 1.3 1.1 .9' 1.5 1.4 1.4 1.6 1.7 23 South Africa 2.2 2.4 2.2 2.0 1.7 1.8 1.7 1.3 1.1 1.5 1.2 24 Australia 1.2 1.4 1.3 1.4 1.3 1.4 1.3 1.3 1.2 1.2 1.2 25 OPEC countries3 12.6 17.6 20.4 22.7 22.6 22.7 23.4 22.9 21.8' 20.9 21.2 26 Ecuador .7 1.1 1.6 1.6 1.5 1.6 1.6 1.7 1.8 1.8 1.9 27 Venezuela 4.1 5.5 6.2 7.2 7.2 7.6 7.9 8.7 7.9 7.9 8.3 28 Indonesia 2.2 2.2 1.9 2.0 1.9 1.9 1.9 1.9 1.9 1.9 1.9 29 Middle East countries 4.2 6.9 8.7 9.5 9.4 9.0 9.2 8.0 7.8 6.9 6.7 30 African countries 1.4 1.9 2.0 2.5 2.6 2.6 2.8 2.6 2.5 2.5 2.4 31 Non-OPEC developing countries 44.2 48.7 49.6 52.6 53.9 55.9 58.8 62.8 63.7' 67.5' 72.8 Latin America 32 Argentina 1.9 2.9 2.9 3.0 3.1 3.5 4.1 5.0' 5.5' 5.6' 7.5 33 Brazil 11.1 12.7 14.0 14.9 14.9 15.1 15.1 15.2 15.0 15.3' 15.8 34 Chile .8 .9 1.3 1.6 1.7 1.8 2.2 2.5 2.5 2.7' 3.2 35 Colombia 1.3 1.3 1.3 1.4 1.5 1.5 1.7 2.2 2.1 2.2 2.3 36 Mexico 11.7 11.9 10.7 10.8 10.9 10.7 11.4 12.0 12.1' 13.6' 14.4 37 Peru 1.8 1.9 1.8 1.7 1.6 1.4 1.4 1.5 1.3 1.4 1.5 38 Other Latin America 2.8 2.6 3.4 3.6 3.5 3.3 3.6 3.7 3.6 3.6 3.9 Asia China 39 Mainland 0 .0 .0 .0 .1 .1 .1 1 .1 .1 .1 40 Taiwan 2.4 3.1 2.4 2.9 3.1 3.3 3.5 3.4 3.6 3.7' 4.1 41 India .2 .3 .3 .2 .2 .2 .2 .2 .2 .2 .2 42 Israel 1.0 .9 .7 1.0 1.0 .9 1.0 1.3 .9 1.2 1.1 43 Korea (South) 3.1 3.9 3.5 3.9 4.2 5.0 5.3 5.5 6.5 7.1' 7.3 44 Malaysia4 .5 .7 .6 .6 .6 .7 .7 .9 .8 .9 .9 45 Philippines 2.2 2.5 2.8 2.8 3.2 3.7 3.7 4.2 4.4 4.6 4.8 46 Thailand .7 1.1 1.1 1.2 1.2 1.4 1.6 1.6 1.4 1.5 1.5 47 Other Asia .5 .4 .3 .2 .3 .4 .3 .4 .4 .5 .5 Africa 48 Egypt .4 .3 .4 .4 .5 .7 .6 .6 .7 .7 .7 49 Morocco .3 .5 .5 .6 .6 .5 .5 .6 .5 .5 .6 50 Zaire .2 .3 .2 .2 .2 .2 .2 .2 .2 .2 .2 51 Other Africa5 1.2 .7 1.3 1.4 1.4 1.5 1.6 1.7 1.8 1.8' 2.0 52 Eastern Europe 5.2 6.3 6.6 6.9 6.7 6.7 7.2 7.3 7.3 7.2 7.3 53 U.S.S.R 1.5 1.6 1.4 1.3 1.1 .9 .9 .7 .6 .5 .5 54 Yugoslavia .8 1.1 1.3 1.5 1.6 1.7 1.8 1.8 1.9 2.1 2.1 55 Other 2.9 3.7 3.9 4.1 4.0 4.1 4.6 4.8 4.9 4.6 4.7 56 Offshore banking centers 24.7 26.1 30.1' 30.9 33.7 37.0 38.6 40.4 42.6' 43.8' 43.7 57 Bahamas 10.1 9.9' 11.5' 10.4' 12.3' 14.4' 13.0' 13.7 14.0' 13.6' 12.6 58 Bermuda .5 .6 .7 .7 .6 .7 .7 .8 .6 .6 .6 59 Cayman Islands and other British West Indies 3.8 3.7 6.7' 7.4 7.1' 7.4' 9.5 9.4 11.3 9.5' 10.1 60 Netherlands Antilles .6 .7 .6 .8 .8 1.0 1.1 1.2 .9 1.1' 1.3 61 Panama6 3.0 3.1 3.1 3.0 3.4 3.8 3.4 4.3 4.9 5.6 5.7 62 Lebanon .1 .2 .1 .1 .1 1 .2 .2 .2 .2 .2 63 Hong Kong 2.2 3.7 4.0 4.2 4.8 4.9 5.5 6.0 5.7 6.9 7.3 64 Singapore 4.4 3.7 2.9 3.9 4.2 4.2 4.9 4.5 4.7 5.9 5.6 65 Others7 .0 .5 .5 .5 .4 .4 .4 .4 .4 .4 .4 66 Miscellaneous and unallocated8 5.0 5.3 8.6 9.1 9.5 9.9 10.6 11.7 13.1 14.3' 13.7 1. The banking offices covered by these data are the U.S. offices and foreign the claims of the U.S. offices also include customer claims and foreign currency branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. claims (amounting in June 1978 to $10 billion). Offices not covered include (1) U.S. agencies and branches of foreign banks, and 3. In addition to the Organization of Petroleum Exporting Countries shown (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are ad- individually, this group includes other members of OPEC (Algeria, Gabon, Iran, justed to exclude the claims on foreign branches held by a U.S. office or another Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) foreign branch of the same banking institution. The data in this table combine as well as Bahrain and Oman (not formally members of OPEC). 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. Includes Canal Zone beginning December 1979. see also footnote 2. 7. Foreign branch claims only. 2. Beginning with data for June 1978, the claims of the U.S. offices 8. Includes New Zealand, Liberia, and international and regional organizations. Digitized foirn FthRis AtaSblEe Rin clude only banks' own claims payable in dollars. For earlier dates http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • December 1980 3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1980 1980 CCoouunnttrryy oorr aarreeaa 11997788 11997799 Jan.- Oct. Apr. May June July Aug. Sept. Oct .P Holdings (end of period)1 1 Estimated total2 44,946' 50,255' 52,013' 51,294' 53,054' 53,742' 52,979' 54,727 55,351 2 Foreign countries2 39,817 44,796' 46,355' 46,833' 48,653' 49,448' 48,850' 50,031 50,874 3 Europe2 17,072 23,705 24,008 24,075 24,377 24,157 23,541 23,914 23,681 4 Belgium-Luxembourg 19 60 28 28 28 45 89 91 78 5 Germany2 8,705 12,937 13,207 13,225 12,976 12,578 11,978 11,991 11,704 6 Netherlands 1,358 1,466 1,473 1,412 1,437 1,547 1,522 1,640 1,658 7 Sweden 285 647 642 653 647 650 640 611 607 8 Switzerland2 977 1,868 1,528 1,574 1,731 1,675 1,675 1,566 1,517 9 United Kingdom 5,373 6,236 6,603 6,665 7,001 7,091 7,106 7,473 7,555 10 Other Western Europe 354 491 527 519 556 571 531 542 562 11 Eastern Europe 0 0 0 0 0 0 o 12 Canada 152 232 381 385 423 481 469 480 503 13 Latin America and Caribbean 416 466' 501' 512' 616' 690' 706' 768 768 14 Venezuela 144 103' 103' 103' 200' 248' 261' 302 292 15 Other Latin America and Caribbean 110 200 199 209 215 242 240 241 255 16 Netherlands Antilles 162 163 199 200 200 200 205 225 221 17 Asia 21,488 19,805' 20,873' 21,270' 22,752' 23,535' 23,546' 24,253' 25,291 18 Japan 11,528 11,175 9,533 9,543 9,545 9,614 9,465 9,444 9,503 19 Africa 691 591 593 593 492 592 592 617 625 20 Allother -3 -3 -2' -2' -6' -6' -5' 0 5 21 Nonmonetary international and regional organizations ... t 5,129' 5,429' 5,658' 4,461' 4,401' 4,294' 4,129' 4,696 4,477 22 International 5,089 5,388 5,606 4,401 4,338 4,234 4,066 4,632 4,430 23 Latin American regional 41' 37 50' 60' 60' 60' 60' 65 44 Transactions (net purchases, or sales (-) during period) 24 Total2 6,305' 5,278' 5,127' -902' -716' 1,757 692 -767 1,752 621 25 Foreign countries2 5,921 4,980' 6,078' -101' 479' 1,820 795 -598 1,181 843 26 Official institutions 3,729 1,697' 3,773' -63' 386 1,716 762 -745 998 603 27 Other foreign2 2,193 3,284 2,303' -37 93' 104 33 146 183 240 28 Nonmonetary international and regional organizations 383' 301' -950' -802 -1,195 -63 -104 -168 571 -222 MEMO: Oil-exporting countries 29 Middle East3 -1,785 -1,014' 6,753' 471 462 1,427 598 140 601 990 30 Africa4 329 -100 33' 0 0 -100 100 0 25 8 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 denominated in foreign currencies. 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 foreign United Arab Emirates (Trucial States). countries. 4. Comprises Algeria, Gabon, Libya, and Nigeria. 3.22 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1980 AAsssseettss 11997777 11997788 11997799 May June July Aug. Sept. Oct. Nov./7 1 Deposits 424 367 429 380 691 436 336 460 368 368 Assets held in custody 2 U.S. Treasury securities1 91,962 117,126 95,075 88,489 93,661 95,525 96,504 96,227 98,121 102,786 3 Earmarked gold2 15,988 15,463 15,169 15,034 15,034 15,034 15,025 14,987 14,986 14,968 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 A63 3.23 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1980 1980 . TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy M-TO inn Jan.- Oct. Apr. May June July Aug. Sept. Oct .P U.S. corporate securities STOCKS 1 Foreign purchases 20,145 22,643 31,400 1,985 1,940 2,550 3,080 3,505 3,569 4,438 2 Foreign sales 17,723 21,017 27,577 1,719 1,958 2,390 2,781 3,301 3,329 3,920 3 Net purchases, or sales (-) 2,423 1,627 3,823 266 -17 160 299 203 241 519 4 Foreign countries 2,469 1,610 3,829 263 -19 162 296 205 246 524 5 Europe 1,283 217 2,182 129 105 56 115 42 -83 301 6 France 47 122 313 14 23 9 62 30 -33 53 7 Germany 620 -221 56 3 14 -5 -13 -21 -18 35 8 Netherlands -22 -71 -253 -30 -40 -25 -27 -26 -38 -29 9 Switzerland -585 -519 131 -75 -17 -19 -82 -127 -122 83 10 United Kingdom 1,230 964 1,952 194 106 99 188 216 153 172 11 Canada 74 552 354 66 -42 24 81 13 -22 -66 12 Latin America and Caribbean 151 -19 99 6 -4 27 -25 -32 -83 132 13 Middle East1 781 656 1,116 145 -60 20 130 183 410 126 14 Other Asia 189 211 47 -81 -21 28 -5 -22 19 33 15 Africa -13 -14 1 0 0 -2 -1 0 2 2 16 Other countries 3 7 31 -2 3 8 2 21 4 -3 17 Nonmonetary international and regional organizations -46 17 -6 3 2 -2 2 -2 -5 -6 BONDS2 18 Foreign purchases 7,985' 8,835' 13,128 1,654 1,280' 1,834 1,695 1,087 645 1,612 19 Foreign sales 5,688' 7,602' 8,235 1,137 1,257' 1,152 898 589 481 739 20 Net purchases, or sales (-) 2,297' 1,233' 4,893 517' 23' 682 797 498 165 873 21 Foreign countries 1,878' 1,330' 4,968 567' 249 625 769 475 214 918 22 Europe 736' 626' 1,371 250' 92 105 129 27 -23 284 23 France 30 11 119 7 47 12 8 6 -2 16 24 Germany -2' 58' 178 103' 104 -14 -50 -11 4 30 25 Netherlands 12 -202 -74 -14 -14 6 -26 -7 7 8 26 Switzerland -202 -118 32 79 -29 -10 -16 -9 0 1 27 United Kingdom 930 814 1,121 36 -34 110 196 53 -5 235 28 Canada 102 80' 121 2 9 5 -2 25 12 9 29 Latin America and Caribbean 98 109 179 13 25 23 29 32 18 7 30 Middle East1 810 424 3,194 295 104 483 600 382 194 594 31 Other Asia 131 88 88 7 17 5 13 9 14 24 32 Africa -1 1 5 0 1 0 0 0 0 0 33 Other countries 1 1 11 0 0 4 1 0 -2 0 34 Nonmonetary international and regional organizations 419' -96' -75 -50 -226' 57 28 23 -49 -45 Foreign securities 35 Stocks, net purchases, or sales (-) 527 -786 -2,294 -40 -241 -164 -76 -201 -558 -335 36 Foreign purchases 3,666 4,615 6,180 402 450 491 654 605 694 788 37 Foreign sales 3,139 5,401 8,475 442 691 655 731 805 1,253 1,143 38 Bonds, net purchases, or sales (-) -4,185' -3,858' -1,162 -12 -251 -618 374 -259 -84 -206 39 Foreign purchases 11,098' 12,661' 13,994 1,072 1,479 1,637 1,725 1,374 1,231 1,651 40 Foreign sales 15,283' 16,519' 15,157 1,084 1,730 2,255 1,351 1,634 1,316 1,857 41 Net purchases, or sales (-), of stocks and bonds .. -3,658' -4,644' -3,457 -52 -491 -781 298 -460 -643 -561 42 Foreign countries -3,471' -3,894' -3,936 -72 -498 -800 -32 -384 -680 -576 43 Europe -61' -1,646' -828 -80 -214 -474 10 -176 -110 113 44 Canada -3,229' -2,601' -2,424 3 -256 -283 -29 42 -344 -651 45 Latin America and Caribbean 221' 345' 162 14 45 -25 34 -14 7 -35 46 Asia 186' 48' -968 -12 -82 -65 -55 -313 -223 -16 47 Africa -441 -65' 32 3 4 3 1 0 -4 29 48 Other countries -146 25 90 0 5 44 7 76 -6 -16 49 Nonmonetary international and regional organizations -187 -750 479 20 7 19 330 -76 37 15 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

A64 International Statistics • December 1980 3.24 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States* Millions of dollars, end of period 1979 1980 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997788 11997799 Mar. June Sept. Dec. Mar. June. 1 Total 14,860 16,910 14,470 15,452 15,653 16,910 17,370 18,500 2 Payable in dollars 11,496 13,916 11,493 12,579 12,667 13,916 14,437 15,145 3 Payable in foreign currencies2 3,363 2,994 2,977 2,872 2,986 2,994 2,933 3,354 By type 4 Financial liabilities 6,305 7,286 6,047 6,024 6,100 7,286 7,799 8,303 5 Payable in dollars 3,841 5,083 3,789 3,861 3,864 5,083 5,618 5,757 6 Payable in foreign currencies 2,464 2,203 2,258 2,164 2,236 2,203 2,182 2,546 7 Commercial liabilities 8,555 9,624 8,423 9,428 9,553 9,624 9,571 10,197 8 Trade payables 3,989 4,369 3,501 4,259 4,035 4,369 4,138 4,299 9 Advance receipts and other liabilities 4,566 5,255 4,922 5,168 5,518 5,255 5,433 5,898 10 Payable in dollars 7,656 8,834 7,703 8,719 8,802 8,834 8,819 9,388 11 Payable in foreign currencies 899 790 719 709 750 790 752 809 By area or country Financial liabilities 12 Europe 3,903 4,554 3,650 3,557 3,682 4,554 4,813 5,389 13 Belgium-Luxembourg 289 345 266 355 317 345 360 413 14 France 167 168 139 134 126 168 188 341 15 Germany 366 497 311 283 381 497 520 668 16 Netherlands 390 834 422 401 542 834 801 804 17 Switzerland 248 168 244 235 190 168 172 231 18 United Kingdom 2,110 2,347 2,054 1,930 1,927 2,347 2,568 2,763 19 Canada 244 445 252 290 304 445 383 482 20 Latin America and Caribbean 1,357 1,483 1,346 1,395 1,347 1,483 1,761 1,632 21 Bahamas 426 347 411 442 355 347 459 433 22 Bermuda 56 109 41 37 37 109 82 2 23 Brazil 10 18 13 19 14 18 22 25 24 British West Indies 194 514 201 189 198 514 693 700 25 Mexico 102 121 101 131 122 121 101 101 26 Venezuela 49 72 55 68 71 72 70 72 27 Asia 791 795 790 772 757 795 821 775 28 Japan 714 723 714 706 700 723 737 680 29 Middle East oil-exporting countries3 32 31 23 25 19 31 26 31 30 Africa 5 4 5 6 5 4 11 10 31 Oil-exporting countries4 2 1 1 2 1 1 1 1 32 All other5 5 4 5 5 5 4 10 15 Commercial liabilities 33 Europe 3,033 3,625 3,003 3,306 3,395 3,625 3,682 4,006 34 Belgium-Luxembourg 75 137 70 81 103 137 117 132 35 France 321 467 350 353 394 467 503 485 36 Germany 529 534 395 471 539 534 533 714 37 Netherlands 246 227 224 230 206 227 288 245 38 Switzerland 302 310 329 439 348 310 382 462 39 United Kingdom 824 1,078 870 997 1,015 1,078 994 1,120 40 Canada 667 852 614 645 709 852 720 591 41 Latin America 997 1,323 1,168 1,335 1,401 1,323 1,253 1,307 42 Bahamas 25 69 16 65 89 69 4 26 43 Bermuda 97 32 42 82 48 32 47 107 44 Brazil 74 203 61 165 186 203 228 151 45 British West Indies 53 21 89 121 21 21 20 37 46 Mexico 106 257 236 216 270 257 235 311 47 Venezuela 303 301 356 323 359 301 211 210 48 Asia 2,912 2,859 2,622 3,007 2,985 2,859 2,912 3,051 49 Japan 429 481 401 489 506 481 578 411 50 Middle East oil-exporting countries3 1,523 1,021 1,122 1,225 1,070 1,021 901 1,017 51 Africa 743 728 779 891 775 728 742 875 52 Oil-exporting countries4 312 384 343 410 370 384 382 498 53 All other5 203 237 237 243 287 237 263 367 1. For a description of the changes in the International Statistics tables, see July 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, 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 A65 3.25 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States* Millions of dollars, end of period 1979 1980 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997788 11997799 Mar. June Sept. Dec. Mar. June 1 Total 27,645 30,141 30,114 29,516 30,069 30,141 31,953 31,808 2 Payable in dollars 24,700 27,087 27,348 26,665 27,458 27,087 28,956 28,778 3 Payable in foreign currencies2 2,945 3,055 2,766 2,852 2,611 3,055 2,997 3,030 By type 4 Financial claims 16,307 17,456 19,390 18,526 18,295 17,456 19,237 18,467 5 Deposits 10,846 11,810 13,932 12,904 12,888 11,810 13,563 12,626 6 Payable in dollars 9,785 10,927 13,013 11,967 11,988 10,927 12,601 11,766 7 Payable in foreign currencies 1,061 883 920 938 901 883 963 860 8 Other financial claims 5,461 5,646 5,458 5,622 5,407 5,646 5,673 5,841 9 Payable in dollars 3,908 3,872 3,949 4,071 4,049 3,872 4,046 4,097 10 Payable in foreign currencies 1,553 1,774 1,509 1,551 1,358 1,774 1,627 1,744 11 Commercial claims 11,337 12,685 10,724 10,991 11,773 12,685 12,716 13,341 12 Trade receivables 10,779 11,997 10,054 10,362 11,061 11,997 12,071 12,638 13 Advance payments and other claims 559 688 670 628 712 688 645 703 14 Payable in dollars 11,007 12,287 10,387 10,627 11,421 12,287 12,309 12,915 15 Payable in foreign currencies 331 398 337 363 352 398 407 426 By area or country Financial claims 16 Europe 5,073 6,066 5,203 5,498 6,428 6,066 5,826 5,812 17 Belgium-Luxembourg 48 32 63 54 33 32 19 23 18 France 178 177 171 183 191 177 290 307 19 Germany 510 401 266 361 393 401 298 185 20 Netherlands 103 53 85 62 51 53 39 37 21 Switzerland 98 73 96 81 85 73 89 96 22 United Kingdom 3,878 5,009 4,284 4,510 5,388 5,009 4,778 4,835 23 Canada 4,482 4,777 5,164 5,101 4,709 4,777 4,882 4,778 24 Latin America and Caribbean 5,595 5,624 7,939 6,840 5,994 5,624 7,512 6,800 25 Bahamas 2,902 2,294 4,148 3,216 2,831 2,294 3,448 2,962 26 Bermuda 80 30 63 57 31 30 34 25 27 Brazil 151 163 156 141 133 163 128 120 28 British West Indies 1,280 1,851 2,443 2,281 1,717 1,851 2,591 2,393 29 Mexico 163 158 160 159 156 158 169 178 30 Venezuela 150 133 142 151 139 133 132 132 31 922 693 829 800 818 693 708 756 32 Japan 307 190 207 217 222 190 226 253 33 Middle East oil-exporting countries3 18 16 16 17 21 16 18 16 34 Africa 181 253 204 227 277 253 265 256 35 Oil-exporting countries4 10 49 26 23 41 49 40 35 36 All other5 55 44 52 61 69 44 43 65 Commercial claims 37 Europe 3,985 4,891 3,811 3,833 4,127 4,891 4,751 4,808 38 Belgium-Luxembourg 144 203 173 170 179 203 208 255 39 France 609 727 490 470 518 727 703 662 40 Germany 399 580 504 421 448 580 515 504 41 Netherlands 267 298 275 307 262 298 347 297 42 Switzerland 198 269 230 232 224 269 349 429 43 United Kingdom 827 905 676 731 818 905 924 904 44 Canada 1,094 840 1,109 1,104 1,162 840 862 895 45 Latin America and Caribbean 2,547 2,859 2,395 2,406 2,598 2,859 2,990 3,278 46 Bahamas 109 21 117 98 16 21 19 19 47 Bermuda 215 197 241 118 154 197 135 133 48 Brazil 629 647 495 503 568 647 656 697 49 British West Indies 9 16 10 25 13 16 11 9 50 Mexico 506 704 489 584 650 704 833 918 51 Venezuela 292 342 274 296 346 342 349 394 52 Asia 3,085 3,299 2,765 2,967 3,116 3,299 3,370 3,544 53 Japan 979 1,127 896 1,005 1,128 1,127 1,209 1,129 54 Middle East oil-exporting countries3 717 700 682 685 701 700 718 830 55 Africa 447 556 443 487 549 556 518 567 56 Oil-exporting countries4 136 133 131 139 140 133 114 116 57 Mother5 179 240 200 194 220 240 225 249 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

A66 International Statistics • December 1980 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Nov. 30, 1980 Rate on Nov. 30, 1980 Rate on Nov. 30, 1980 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Argentina 110.31 Nov. 1980 France 9.5 Aug. 1977 Sweden 10.0 Jan. 1980 Austria .. 6.75 Mar. 1980 Germany, Fed. Rep. of 7.5 May 1980 Switzerland 3.0 Feb. 1980 Belgium . 12.0 July 1980 Italy 16.5 Sept. 1980 United Kingdom 14.0 Nov. 1980 Brazil ... 40.0 June 1980 Japan 7.25 Nov. 1980 Venezuela 12.0 Mar. 1980 Canada .. 13.95 Nov. 1980 Netherlands 8.0 Oct. 1980 Denmark 11.00 Oct. 1980 Norway 9.0 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 1980 CCoouunnttrryy,, oorr ttyyppee 11997777 11997788 11997799 May June July Aug. Sept. Oct. Nov. 1 Eurodollars 6.03 8.74 11.96 11.20 9.41 9.33 10.82 12.07 13.55 16.46 2 United Kingdom 8.07 9.18 13.60 16.97 16.68 15.82 16.45 15.89 15.87 15.84 3 Canada 7.47 8.52 11.91 13.23 11.73 10.91 10.47 10.73 11.71 12.96 4 Germany 4.30 3.67 6.64 10.18 10.00 9.59 8.93 8.90 8.99 9.37 5 Switzerland 2.56 0.74 2.04 5.85 5.64 5.29 5.52 5.57 5.40 5.53 6 Netherlands 4.73 6.53 9.33 11.18 10.72 10.06 9.97 10.31 9.63 9.59 7 France 9.20 8.10 9.44 12.62 12.37 11.87 11.20 11.81 11.69 11.26 8 Italy 14.26 11.40 11.85 17.20 17.25 17.49 17.30 17.50 18.16 17.51 9 Belgium 6.95 7.14 10.48 16.31 14.69 13.30 12.52 12.35 12.24 12.40 10 Japan 6.22 4.75 6.10 13.63 13.51 12.89 12.04 11.46 10.98 9.74 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 1980 CCoouunnttrryy//ccuurrrreennccyy 11997777 11997788 11997799 May June July Aug. Sept. Oct. Nov. 1 Australia/dollar 110.82 114.41 111.77 113.02 115.29 115.85 115.77 117.04 117.43 116.75 2 Austria/schilling 6.0494 6.8958 7.4799 7.8112 7.9421 8.0578 7.8840 7.8916 7.6714 7.3433 3 Belgium/franc 2.7911 3.1809 3.4098 3.4759 3.5335 3.5766 3.4883 3.4844 3.3875 3.2457 4 Canada/dollar 94.112 87.729 85.386 85.178 86.836 86.783 86.263 85.861 85.538 84.286 5 Denmark/krone 16.658 18.156 19.010 17.859 18.215 18.487 18.070 18.068 17.639 16.962 6 Finland/markka 24.913 24.337 27.732 27.084 27.448 27.699 27.353 27.428 27.122 26.452 7 France/franc 20.344 22.218 23.504 23.920 24.310 24.657 24.106 24.056 23.489 22.515 8 Germany/deutsche mark 43.079 49:867 54.561 55.828 56.584 57.245 55.867 55.883 54.280 52.113 9 India/rupee 11.406 12.207 12.265 12.727 12.751 12.875 12.849 12.903 12.932 12.868 10 Ireland/pound 174.49 191.84 204.65 207.41 211.16 214.74 210.62 210.34 203.88 194.59 11 Italy/lira .11328 .11782 .12035 .11860 .11973 .12026 .11801 .11742 .11441 .11000 12 Japan/yen .37342 .47981 .45834 .43766 .45894 .45232 .44666 .46644 .47777 .46928 13 Malaysia/ringgit 40.620 43.210 45.720 45.691 46.625 46.658 46.484 47.127 46.902 46.187 14 Mexico/peso 4.4239 4.3896 4.3826 4.3763 4.3684 4.3511 4.3389 4.3443 4.3324 4.3166 15 Netherlands/guilder 40.752 46.284 49.843 50.673 51.578 52.337 51.305 51.398 50.052 48.102 16 New Zealand/dollar 96.893 103.64 102.23 97.641 98.729 98.643 97.738 98.309 98.069 96.770 17 Norway/krone 18.789 19.079 19.747 20.377 20.608 20.762 20.555 20.676 20.421 19.938 18 Portugal/escudo 2.6234 2.2782 2.0437 2.0298 2.0422 2.0466 2.0163 2.0096 1.9756 1.9178 19 South Africa/rand 114.99 115.01 118.72 126.43 129.00 130.79 131.55 132.73 133.13 133.20 20 Spain/peseta 1.3287 1.3073 1.4896 1.4104 1.4280 1.4122 1.3810 1.3639 1.3423 1.3085 21 Sri Lanka/rupee 11.964 6.3834 6.4226 6.1900 6.2186 6.3288 6.2980 6.3196 5.9707 5.8139 22 Sweden/krona 22.383 22.139 23.323 23.731 23.995 24.238 23.953 24.072 23.845 23.240 23 Switzerland/franc 41.714 56.283 60.121 60.131 61.207 62.203 60.527 61.012 60.185 57.942 24 United Kingdom/pound 174.49 191.84 212.24 230.20 233.59 237.32 237.04 240.12 241.64 239.41 MEMO: 25 United States/dollar1 103.31 92.39 88.09 86.96 85.29 84.65 86.09 85.50 86.59 89.31 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

A67 Guide to Tabular Presentation, Statistical Releases, and Special Tables 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 millions) 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 Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases August 1980 A80 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference Commercial bank assets and liabilities, call dates, December 31, 1978, to March 31, 1980 October 1980 A71 Commercial bank assets and liabilities, June 30, 1980 December 1980 A68 Special tables begin on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • December 1980 4.20 DOMESTIC AND FOREIGN OFFICES, Commercial Banks with Assets of $100 Million or over*? Consolidated Report of Condition; June 30, 1980 Millions of dollars Banks with foreign offices2 BBaannkkss Item IInnssuurreedd wwiitthhoouutt Total F o o ff r i e c i e g s n 3 D o o f m fi e c s e t s i c ff oo oo ff rr ff ee iicc iigg ee nn ss 1 Total assets 1,378,679 1,028,935 335,806 718,145 349,745 2 Cash and due from depository institutions 285,268 245,676 121,357 124,319 39,592 3 Currency and coin (U.S. and foreign) 11,411 6,523 246 6,277 4,888 4 Balances with Federal Reserve Banks 31,625 24,622 528 24,094 7,003 5 Balances with other central banks 3,018 3,018 3,006 12 N.A. 6 Demand balances with commercial banks in United States 41,119 30,179 4,231 25,947 10,941 7 All other balances with depository institutions in United States and with banks in foreign countries 119,586 115,886 111,197 4,689 3,700 8 Time and savings balances with commercial banks in United States 4,372 2,010 961 1,049 2,362 9 Balances with other depository institutions in United States 349 239 129 109 110 10 Balances with banks in foreign countries 114,865 113,637 110,107 3,530 1,228 11 Foreign branches of other U.S. banks N.A. 26,896 25,750 1,146 N.A. 12 Other banks in foreign countries N.A. 86,741 84,357 2,384 N.A. 13 Cash items in process of collection 78,508 65,449 2,149 63,300 13,059 14 Total securities, loans, and lease financing receivables 1,000,552 703,990 188,745 515,246 296,562 15 Total securities, book value 206,592 119,471 10,236 109,234 87,121 16 U.S. Treasury 59,500 32,281 429 31,852 27,220 17 Obligations of other U.S. government agencies and corporations 31,519 16,428 130 16,297 15,092 18 Obligations of states and political subdivisions in United States 93,549 51,447 644 50,803 42,102 19 All other securities 22,023 19,316' 9,033 10,282 2,708 20 Other bonds, notes, and debentures 10,970 9,078 7,426 1,651 1,893 21 Federal Reserve and corporate stock 1,663 1,213 166 1,047 450 22 Trading account securities 9,391 9,025 1,442 7,584 365 23 Federal funds sold and securities purchased under agreements to resell 43,261 23,531 549 22,982 19,731 24 Total loans, gross 760,696 564,088 177,599 386,489 196,607 25 LESS: Unearned income on loans 14,810 8,434 1,563 6,872 6,375 26 Allowance for possible loan loss 7,741 5,615 222 5,393 2,126 27 EQUALS: Loans, net 738,146 550,039 175,814 374,225 188,106 Total loans, gross, by category 28 Real estate loans 180,939 107,612 6,084 101,528 73,327 29 Construction and land development N.A. N.A. N.A. 20,541 8,284 30 Secured by farmland N.A. N.A. N.A. 719 1,164 31 Secured by residential properties N.A. N.A. N.A. 59,639 41,013 32 1- to 4-family N.A. N.A. N.A. 56,546 39,024 33 FHA-insured or VA-guaranteed N.A. N.A. N.A. 3,782 1,992 34 Conventional N.A. N.A. N.A. 52,763 37,032 35 Multifamily N.A. N.A. N.A. 3,094 1,990 36 FHA-insured N.A. N.A. N.A. 213 94 37 Conventional N.A. N.A. N.A. 2,880 1,896 38 Secured by nonfarm nonresidential properties N.A. N.A. N.A. 20,628 22,864 39 Loans to financial institutions 69,478 66,879 32,322 34,557 2,599 40 REITs and mortgage companies in United States 5,540 4,907 100 4,807 633 41 Commercial banks in United States 5,262 4,839 720 4,119 423 42 U.S. branches and agencies of foreign banks N.A. 1,760 388 1,372 N.A. 43 Other commercial banks N.A. 3,078 331 2,747 N.A. 44 Banks in foreign countries 31,559 31,366 24,182 7,184 194 45 Foreign branches of other U.S. banks N.A. 858 521 337 N.A. 46 Other N.A. 30,507 23,661 6,847 N.A. 47 Finance companies in United States 9,620 9,206 404 8,802 414 48 Other financial institutions 17,496 16,562 6,916 9,645 935 49 Loans for purchasing or carrying securities 13,085 11,375 1,547 9,828 1,710 50 Brokers and dealers in securities 8,968 8,692 1,138 7,554 276 51 Other 4,117 2,682 409 2,273 1,435 52 Loans to finance agricultural production and other loans to farmers 9,441 5,506 583 4,922 3,935 53 Commercial and industrial loans 317,375 262,017 104,465 157,552 55,358 54 U.S. addressees (domicile) N.A. 157,620 7,636 149,983 N.A. 55 Non-U.S. addressees (domicile) N.A. 104,397 96,829 7,569 N.A. 56 Loans to individuals for household, family, and other personal expenditures 127,939 71,542 6,406 65,136 56,397 57 Installment loans N.A. N.A. N.A. 55,576 48,050 58 Passenger automobiles N.A. N.A. N.A. 18,375 21,151 59 Credit cards and related plans N.A. N.A. N.A. 18,268 8,803 60 Retail (charge account) credit card N.A. N.A. N.A. 14,651 7,514 61 Check and revolving credit N.A. N.A. N.A. 3,617 1,290 62 Mobile homes N.A. N.A. N.A. 3,483 3,494 63 Other installment loans N.A. N.A. N.A. 15,450 14,602 64 Other retail consumer goods N.A. N.A. N.A. 4,174 3,424 65 Residential property repair and modernization N.A. N.A. N.A. 3,729 3,524 66 Other installment loans for household, family, and other personal expenditures N.A. N.A. N.A. 7,547 7,654 67 Single-payment loans N.A. N.A. N.A. 9,560 8,347 68 All other loans 42,439 39,158 26,191 12,966 3,281 69 Loans to foreign governments and official institutions N.A. 25,196 22,942 2,254 N.A. 70 Other N.A. 13,961 3,249 10,712 N.A. 71 Lease financing receivables 12,554 10,950 2,145 8,805 1,604 72 Bank premises, furniture and fixtures, and other assets representing bank premises 17,700 10,737 1,031 9,705 6,963 73 Real estate owned other than bank premises 1,673 1,212 137 1,075 461 74 All other assets 73,486 67,319 24,536 67,799 6,167 75 Investment in unconsolidated subsidiaries and associated companies 1,236 1,200 721 479 36 76 Customers' liability on acceptances outstanding 39,559 39,282 8,363 30,920 276 77 U.S. addressees (domicile) N.A. 13,826 N.A. N.A. N.A. 78 Non-U.S. addressees (domicile) N.A. 25,456 N.A. N.A. N.A. 79 Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries .. N.A. N.A. 5,469 19,546 N.A. 80 Other 32,691 26,837 9,982 16,854 5,854 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A69 4.20 Continued Banks with foreign offices2 BBaannkkss Item IInnssuurreedd Total F o o ff r i e c i e g s n 3 D o o f m fi e c s e t s i c ww ff oo oo ii ff rr tt ff hh ee iicc ii oo gg ee uu nn ss tt 81 Total liabilities and equity capital4 1,378,679 1,028,935 N.A. N.A. 349,745 82 Total liabilities excluding subordinated debt 1,301,363 978,369 335,510 667,874 322,994 83 Total deposits 1,066,710 775,242 284,622 490,620 291,468 84 Individuals, partnerships, and corporations 739,104 486,870 100,183 386,687 252,234 85 U.S. government 2,241 1,484 203 1,281 757 86 States and political subdivisions in United States 51,247 24,942 550 24,392 26,305 87 Allother 258,710 249,878 181,413 68,465 8,832 88 Foreign governments and official institutions 44,719 44,454 36,170 8,284 265 89 Commercial banks in United States 73,464 65,210 15,622 49,589 8,253 90 U.S. branches and agencies of foreign banks N.A. 13,869 3,759 10,111 N.A. 91 Other commercial banks in United States N.A. 51,341 11,863 39,478 N.A. 92 Banks in foreign countries 140,528 140,214 129,622 10,592 314 93 Foreign branches of other U.S. banks N.A. 27,015 26,981 33 N.A. 94 Other banks in foreign countries N.A. 113,199 102,641 10,559 N.A. 95 Certified and officers' checks, travelers checks, and letters of credit sold for cash 15,407 12,068 2,272 9,796 3,339 % Federal funds purchased and securities sold under agreements to repurchase in domestic offices and Edge and agreement subsidiaries : 119,377 97,459 557 96,902 21,918 97 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed money 37,485 34,152 13,083 21,069 3,333 98 Interest-bearing demand notes (note balances) issued to U.S. Treasury 9,790 7,334 N.A. 7,334 2,455 99 Other liabilities for borrowed money 27,695 26,818 13,083 13,734 877 100 Mortgage indebtedness and liability for capitalized leases 1,826 1,253 43 1,211 573 101 All other liabilities 75,966 70,262 37,206 58,072 5,704 102 Acceptances executed and outstanding 39,874 39,598 7,076 32,521 277 103 Net aue to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries N.A. N.A. 19,546 5,469 N.A. 104 Other 36,092 30,665 10,583 20,082 5,427 105 Subordinated notes and debentures 5,763 4,064 295 3,769 1,699 106 Total equity capital4 71,553 46,502 N.A. N.A. 25,051 107 Preferred stock 96 10 N.A. N.A. 86 108 Common stock 14,408 9,333 N.A. N.A. 5,076 109 Surplus 25,369 15,916 N.A. N.A. 9,452 110 Undivided profits and reserve for contingencies and other capital reserves 31,680 21,243 N.A. N.A. 10,437 111 Undivided profits 30,816 20,802 N.A. N.A. 10,014 112 Reserve for contingencies and other capital reserves 864 441 N.A. N.A. 424 MEMO Deposits in domestic offices 113 Total demand 320,867 223,159 0 223,159 97,707 114 Total savings 132,849 69,151 0 69,151 63,698 115 Total time 328,372 198,310 0 198,310 130,062 116 Time deposits of $100,000 or more 177,177 127,004 0 127,004 50,172 117 Certificates of deposit (CDs) in denominations of $100,000 or more 155,182 109,023 0 109,023 46,159 118 Other 21,995 17,981 0 17,981 4,013 119 Savings deposits authorized for automatic transfer and NOW accounts 12,655 7,764 0 7,764 4,892 120 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks 86,545 41,851 0 41,851 44,694 121 Demand deposits adjusted5 192,208 115,024 0 115,024 77,184 122 Standby letters of credit, total 39,724 37,197 8,721 28,476 2,528 123 U.S. addressees (domicile) N.A. 24,138 N.A. N.A. N.A. 124 Non-U.S. addressees (domicile) N.A. 13,059 N.A. N.A. N.A. 125 Standby letters of credit conveyed to others through participations (included in total standby letters of credit) 2,131 2,064 381 1,682 67 126 Holdings of commercial paper included in total gross loans N.A. N.A. N.A. 249 353 Average for 30 calendar days (or calendar month) ending with report date 127 Total assets 1,343,054 998,709 310,355 688,355 344,345 128 Cash and due from depository institutions 260,702 226,132 120,436 105,696 34,571 129 Federal funds sold and securities purchased under agreements to resell 43,986 23,689 692 22,997 20,297 130 Total loans 737,823 547,900 172,577 375,323 189,923 131 Total deposits 1,031,758 746,389 285,703 460,686 285,369 132 Time CDs in denominations of $100,000 or more in domestic offices 157,818 N.A. N.A. 110,742 47,076 133 Federal funds purchased and securities sold under agreements to repurchase 126,062 102,801 778 102,023 23,262 134 Other liabilities for borrowed money 26,896 25,980 11,411 14,569 916 135 Number of banks 1,430 173 173 173 1,257 For notes see page A73. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • December 1980 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or over'^ Consolidated Report of Condition; June 30, 1980 Millions of dollars Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr Total National State iinnssuurreedd 1 Total assets 1,067,890 915,600 688,212 227,388 152,290 2 Cash and due from depository institutions 163,911 149,049 97,158 51,891 14,861 3 Currency and coin (U.S. and foreign) 11,165 9,549 7,395 2,154 1,616 4 Balances with Federal Reserve Banks 31,097 31,088 22,080 9,008 9 5 Balances with other central banks 12 12 12 * * 6 Demand balances with commercial banks in United States 36,888 29,004 15,517 13,486 7,885 7 All other balances with depository institutions in United States and with banks in foreign countries 8,389 5,339 4,083 1,257 3,050 8 Time and savings balances with commercial banks in United States 3,411 1,782 1,564 218 1,629 9 Balances with other depository institutions in United States 220 89 74 16 130 10 Balances with banks in foreign countries 4,759 3,468 2,445 1,023 1,290 11 Cash items in process of collection 76,359 74,057 48,071 25,986 2,302 12 Total securities, loans, and lease financing receivables 811,808 681,728 527,807 153,921 130,079 13 Total securities, book value 196,356 157,591 119,271 38,320 38,765 14 U.S. Treasury 59,071 46,147 34,735 11,412 12,924 15 Obligations of other U.S. government agencies and corporations 31,389 24,399 19,143 5,257 6,990 16 Obligations of states and political subdivisions in United States 92,905 75,687 57,428 18,259 17,218 17 All other securities 12,990 11,357 7,965 3,392 1,633 18 Other bonds, notes, and debentures 3,544 2,258 1,654 604 1,286 19 Federal Reserve and corporate stock 1,497 1,318 973 344 180 20 Trading account securities 7,949 7,782 5,338 2,444 167 21 Federal funds sold and securities purchased under agreements to resell 42,713 37,068 29,585 7,483 5,644 22 Total loans, gross 583,096 494,613 385,485 109,128 88,483 23 LESS: Unearned income on loans 13,247 10,559 8,733 1,826 2,688 24 Allowance for possible loan loss 7,518 6,588 4,950 1,638 930 25 EQUALS: Loans, net 562,331 477,466 371,802 105,664 84,865 Total loans, gross, by category 26 Real estate loans 117744,,885555 140,109 114,932 25,177 34,746 27 Construction and land development 28,825 24,278 19,078 5,201 4,547 28 Secured by farmland 1,884 1,418 1,293 125 466 29 Secured by residential properties 100,653 81,462 67,929 13,534 19,190 30 l-to4-family 95,569 77,469 64,878 12,591 18,101 31 FHA-insured or VA-guaranteed 5,774 5,197 4,398 798 578 32 Conventional 89,795 72,272 60,480 11,792 17,523 33 Multifamily 5,083 3,994 3,051 943 1,090 34 FHA-insured 307 248 133 114 59 35 Conventional 4,777 3,746 2,917 829 1,031 36 Secured by nonfarm nonresidential properties 43,493 32,950 26,633 6,317 10,543 37 Loans to financial institutions 37,156 35,546 23,167 12,379 1,609 38 REITs and mortgage companies in United States 5,440 5,164 3,916 1,248 276 39 Commercial banks in United States 4,542 4,147 2,592 1,555 395 40 Banks in foreign countries 7,377 7,141 3,956 3,185 236 41 Finance companies in United States 9,216 8,987 5,889 3,097 230 42 Other financial institutions 10,580 10,108 6,813 3,295 472 43 Loans for purchasing or carrying securities 11,538 10,852 6,573 4,099 686 44 Brokers and dealers in securities 7,830 7,499 4,190 3,309 331 45 Other 3,708 3,353 2,563 790 355 46 Loans to finance agricultural production and other loans to farmers 8,857 7,972 7,454 518 886 47 Commercial and industrial loans 212,910 187,510 142,619 44,891 25,399 48 Loans to individuals for household, family, and other personal expenditures 121,533 97,791 80,303 17,487 23,742 49 Installment loans 103,626 83,236 68,780 14,456 20,390 50 Passenger automobiles 39,526 30,363 25,116 5,247 9,163 51 Credit cards and related plans 27,071 24,288 20,042 4,246 2,783 52 Retail (charge account) credit card 22,165 20,070 16,819 3,251 2,095 53 Check and revolving credit 4,906 4,219 3,224 995 688 54 Mobile homes 6,976 5,683 5,179 504 1,293 55 Other installment loans 30,052 22,901 18,443 4,459 7,151 56 Other retail consumer goods 7,598 6,097 5,207 890 1,501 57 Residential property repair and modernization 7,252 5,394 4,434 960 1,858 58 Other installment loans for household, family, and other personal expenditures 15,202 11,411 8,802 2,609 3,791 59 Single-payment loans 17,907 14,555 11,524 3,031 3,352 60 All other loans 16,247 14,833 10,256 4,577 1,415 61 Lease financing receivables 10,408 9,603 7,149 2,454 805 63 Bank premises, furniture and fixtures, and other assets representing bank premises 16,669 13,709 11,178 2,532 2,959 63 Real estate owned other than bank premises 1,536 1,347 1,077 270 189 64 All other assets 73,966 69,765 50,992 18,774 4,201 65 Investment in unconsolidated subsidiaries and associated companies 515 489 416 73 26 66 Customers' liability on acceptances outstanding 31,196 30,604 21,736 8,869 591 67 Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries 19,546 18,673 14,329 4,344 873 6688 Other 2222,,770099 1199,,999988 1144,,551111 55,,448888 22,,771100 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A71 4.21 Continued Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr Total National State iinnssuurreedd 69 Total liabilities and equity capital7 1,067,890 915,600 688,212 227,388 152,290 70 Total liabilities excluding subordinated debt 990,869 849,895 638,368 211,527 140,974 71 Total deposits 782,088 652,838 492,265 160,573 129,250 72 Individuals, partnerships, and corporations 638,921 527,081 412,111 114,970 111,840 73 U.S. government 2,038 1,686 1,323 363 352 74 States and political subdivisions in United States 50,697 38,366 31,668 6,698 12,330 75 Allother 77,297 74,352 40,890 33,462 2,945 76 Foreign governments and official institutions 8,549 8,267 5,046 3,221 282 77 Commercial banks in United States 57,842 55,570 31,046 24,525 2,272 78 Banks in foreign countries 10,906 10,514 4,798 5,716 392 79 Certified and officers' checks, travelers checks, and letters of credit sold for cash 13,135 11,353 6,273 5,080 1,782 80 Demand deposits 320,867 280,108 194,343 85,766 40,758 81 Mutual savings banks 1,235 1,056 546 510 179 82 Other individuals, partnerships, and corporations 230,131 195,543 147,241 48,302 34,588 83 U.S. government 1,500 1,263 1,021 241 237 84 States and political subdivisions in United States 11,209 9,041 7,296 1,745 2,168 85 Allother 63,655 61,852 31,966 29,887 1,803 86 Foreign governments and official institutions 2,995 2,924 1,406 1,518 71 87 Commercial banks in United States 50,800 49,243 26,273 22,970 1,557 88 Banks in foreign countries 9,860 9,685 4,287 5,399 175 89 Certified and officers' checks, travelers checks, and letters of credit sold for cash 13,135 11,353 6,273 5,080 1,782 90 Time deposits 328,372 267,511 213,812 53,699 60,862 91 Mutual savings banks 420 412 339 73 8 92 Other individuals, partnerships, and corporations 276,220 226,371 181,004 45,367 49,849 93 U.S. government 478 367 247 120 111 94 States and political subdivisions in United States 37,635 27,883 23,317 4,566 9,752 95 Allother 13,619 12,478 8,905 3,573 1,141 96 Foreign governments and official institutions 5,537 5,327 3,626 1,701 210 97 Commercial banks in United States 7,036 6,322 4,767 1,554 714 98 Banks in foreign countries 1,046 829 511 317 217 99 Savings deposits 132,849 105,219 84,111 21,108 27,630 100 Mutual savings banks * * * 0 0 101 Other individuals, partnerships, and corporations 130,914 103,699 82,981 20,718 27,215 102 Individuals and nonprofit organizations 124,181 98,655 78,984 19,671 25,526 103 Corporations and other profit organizations 6,732 5,044 3,997 1,047 1,688 104 U.S. government 60 56 55 1 5 105 States and political subdivisions in United States 1,852 1,442 1,055 387 410 106 Allother 22 22 20 2 * 107 Foreign governments and official institutions 17 16 14 2 * 108 Commercial banks in United States 6 6 6 * * 109 Banks in foreign countries * * * * * 110 Federal funds purchased and securities sold under agreements to repurchase 118,820 111,675 84,651 27,024 7,145 111 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed money 24,401 23,327 14,924 8,403 1,075 112 Interest-bearing demand notes (note balances) issued to U.S. Treasury 9,790 9,036 6,594 2,442 753 113 Other liabilities for borrowed money 14,612 14,290 8,329 5,961 321 114 Mortgage indebtedness and liability for capitalized leases 1,783 1,506 1,231 276 277 115 All other liabilities 63,776 60,548 45,297 15,251 3,228 116 Acceptances executed and outstanding 32,798 32,206 23,197 9,009 592 117 Net due to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries 5,469 5,340 4,824 516 130 118 Other 25,509 23,002 17,276 5,726 2,506 119 Subordinated notes and debentures 5,468 4,438 3,261 1,177 1,030 120 Total equity capital7 71,553 61,267 46,583 14,684 10,286 MEMO: 121 Time deposits of $100,000 or more 177,177 149,683 115,790 33,893 27,494 122 Certificates of deposit (CDs) in denominations of $100,000 or more 155,182 129,288 98,557 30,730 25,894 123 Other 21,995 20,395 17,232 3,163 1 599 124 Savings deposits authorized for automatic transfer and NOW accounts 12,655 10,418 7,838 2,580 2,237 125 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 86,545 67,792 56,772 11,020 18,753 126 Demand deposits adjusted5 192,208 155,545 118,977 36,568 36,662 127 Total standby letters of credit 31,003 29,692 19,075 10,618 1,311 128 Conveyed to others through participation (included in standby letters of credit 1,750 1,709 1,406 303 41 129 Holdings of commercial paper included in total gross loans 602 335 230 105 267 Average for 30 calendar days (or calendar month) ending with report date 130 Total assets 1,032,700 883,501 667,762 215,740 149,198 131 Cash and due from depository institutions 140,266 128,606 85,411 43,195 11,660 132 Federal funds sold ana securities purchased under agreements to resell 43,294 37,204 28,000 9,204 6,090 133 Total loans 565,246 479,796 373,162 106,633 85,451 134 Total deposits 746,054 619,667 470,768 148,899 126,388 135 Time CDs in denominations of $100,000 or more in domestic offices 157,818 131,673 100,332 31,341 26,145 136 Federal funds purchased and securities sold under agreements to repurchase 125,284 118,411 88,818 29,592 6,874 137 Other liabilities for borrowed money 15,485 15,116 8,897 6,219 369 138 Number of banks 1,430 931 771 160 499 For notes see page A73. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • December 1980 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities*? Consolidated Report of Condition; June 30, 1980 Millions of dollars Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr Total National State iinnssuurreedd 1 Total assets 1,429,221 1,066,633 815,725 250,909 362,587 2 Cash and due from depository institutions 196,727 164,408 110,232 54,176 32,319 3 Currency and coin (U.S. and foreign) 16,024 11,780 9,283 2,497 4,244 4 Balances with Federal Reserve Banks 35,685 35,664 25,968 9,696 21 5 Balances with other central banks 12 12 12 6 Demand balances with commercial banks in United States 53,031 34,090 19,906 14,184 18,940 7 All other balances with depository institutions in United States and banks in foreign countries 12,407 6,648 5,238 1,410 5,759 8 Cash items in process of collection 79,568 76,214 49,825 26,388 3,354 9 Total securities, loans, and lease financing receivables 1,127,160 812,002 637,640 174,361 315,158 10 Total securities, book value 295,746 198,692 154,108 44,584 97,053 11 U.S. Treasury 90,650 58,906 45,374 13,532 31,744 12 Obligations of other U.S. government agencies and corporations 53,554 33,113 26,548 6,564 20,441 13 Obligations of states and political subdivisions in United States 136,691 94,518 73,554 20,964 42,173 14 All other securities 14,850 12,155 8,632 3,523 2,695 15 Federal funds sold and securities purchased under agreements to resell 63,914 46,119 37,201 8,918 17,796 16 Total loans, gross 786,377 578,275 455,860 122,416 208,101 17 LESS: Unearned income on loans 20,182 13,448 11,189 2,260 6,734 18 Allowance for possible loan loss 9,435 7,412 5,652 1,761 2,023 19 EQUALS: Loans, net 756,759 557,415 439,019 118,395 199,345 Total loans, gross, by category 20 Real estate loans 250,881 171,575 141,057 30,518 79,305 21 Construction and land development 33,960 26,054 20,618 5,436 7,906 22 Secured by farmland 8,436 3,619 3,054 565 4,817 23 Secured by residential properties 146,405 101,318 84,300 17,019 45,087 24 1- to 4-family 140,096 96,866 80,871 15,996 43,230 25 Multifamily 6,309 4,452 3,429 1,023 1,857 26 Secured by nonfarm nonresidential properties 62,079 40,584 33,085 7,499 21,495 27 Loans to financial institutions 37,864 35,814 23,395 12,419 2,050 28 Loans for purchasing or carrying securities 12,116 11,032 6,911 4,121 1,085 29 Loans to finance agricultural production and other loans to farmers 31,055 16,575 14,489 2,086 14,480 30 Commercial and industrial loans 257,435 205,958 158,396 47,562 51,477 31 Loans to individuals for household, family, and other personal expenditures 177,737 121,193 100,239 20,954 56,544 32 Installment loans 147,801 101,745 84,594 17,151 46,056 33 Passenger automobiles 64,157 40,635 33,913 6,722 23,521 34 Credit cards and related plans 28,265 24,853 20,541 4,312 3,413 35 Mobile homes 10,601 7,336 6,604 732 3,265 36 All other installment loans for household, family, and other personal expenditures 44,778 28,922 23,536 5,385 15,857 37 Single-payment loans 29,935 19,448 15,645 3,802 10,488 38 All other loans 19,289 16,128 11,373 4,755 3,161 39 Lease financing receivables 10,741 9,776 7,312 2,464 965 40 Bank premises, furniture and fixtures, and other assets representing bank premises 23,825 16,694 13,711 2,982 7,132 41 Real estate owned other than bank premises 2,029 1,516 1,212 304 513 42 All other assets 79,479 72,015 52,930 19,085 7,465 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.22 Continued Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr Total National State iinnssuurreedd 43 Total liabilities and equity capital7 1,429,221 1,066,633 815,725 250,909 362,587 44 Total liabilities excluding subordinated debt 1,320,704 987,965 754,992 232,973 332,739 45 Total deposits 1,100,990 785,697 604,470 181,227 315,293 46 Individuals, partnerships, and corporations 923,662 646,331 512,709 133,622 277,331 47 U.S. government 2,932 2,031 1,624 407 902 48 States and political subdivisions in United States 79,811 49,821 41,440 8,381 29,990 49 Allother 78,341 74,857 41,308 33,549 3,484 50 Certified and officers' checks, travelers checks, and letters of credit sold for cash 16,243 12,657 7,389 5,268 3,585 51 Demand deposits 414,847 319,645 228,203 91,443 95,202 52 Individuals, partnerships, and corporations 314,370 231,353 177,611 53,742 83,017 53 U.S. government 2,180 1,530 1,252 278 649 54 States and political subdivisions in United States 17,669 11,842 9,655 2,187 5,827 55 All other 64,385 62,262 32,296 29,967 2,123 56 Certified and officers' checks, travelers checks, and letters of credit sold for cash 16,243 12,657 7,389 5,268 3,585 57 Time deposits 486,132 331,774 267,955 63,820 154,357 58 Other individuals, partnerships, and corporations 413,166 283,076 228,640 54,436 130,090 59 U.S. government 673 435 310 125 237 60 States and political subdivisions in United States 58,384 35,705 30,026 5,679 22,679 61 Allother 13,908 12,558 8,979 3,579 1,350 62 Savings deposits 200,011 134,278 108,313 25,965 65,734 63 Corporations and other profit organizations 9,488 6,164 4,948 1,216 3,324 64 Other individuals, partnerships, and corporations 186,638 125,739 101,510 24,229 60,900 65 U.S. government 80 65 62 3 15 66 States and political subdivisions in United States 3,758 2,274 1,759 515 1,484 67 All other 48 37 34 3 11 68 Federal funds purchased and securities sold under agreements to repurchase 123,081 113,940 86,546 27,394 99,,114411 69 Interest-bearing demand notes (note balances) issued to U.S. Treasury and other liabilities for borrowed money 25,890 24,092 15,589 8,503 11,,779988 70 Mortgage indebtedness and liability for capitalized leases 2,109 1,629 1,328 301 448800 71 All other liabilities 68,635 62,607 47,059 15,548 6,027 72 Subordinated notes and debentures 6,263 4,765 3,554 1,212 1,498 73 Total equity capital7 102,254 73,903 57,179 16,724 28,351 MEMO 74 Time deposits of $100,000 or more 212,711 163,405 127,621 35,784 49,307 75 Certificates of deposit (CDs) in denominations of $100,000 or more 187,019 141,588 109,168 32,420 45,430 76 Other 25,693 21,816 18,453 3,363 3,877 77 Savings deposits authorized for automatic transfer and NOW accounts 1155,,445599 1111,,775544 8,978 22,,777766 33,,770055 78 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks 153,255 95,344 79,958 15,386 57,912 79 Demand deposits adjusted5 281,572 192,248 150,523 41,726 89,324 80 Total standby letters of credit 31,894 30,035 19,368 10,667 1,859 Average for 30 calendar days (or calendar month) ending with report date 81 Total deposits 1,061,612 750,812 581,520 169,292 310,800 82 Number of banks 14,395 5,406 4,425 981 8,989 1. Effective December 31,1978, the report of condition was substantially revised 4. Equity capital is not allocated between the domestic and foreign offices of for commercial banks. Commercial banks with assets less than $100 million and banks with foreign offices. with domestic offices only were given the option to complete either the abbreviated 5. Demand deposits adjusted equal demand deposits other than domestic comor the standard set of reports. Banks with foreign offices began reporting in greater mercial interbank and U.S. government less cash items in process of collection. detail on a consolidated domestic and foreign basis. These tables reflect the varying 6. Domestic offices exclude branches in foreign countries and in U.S. territories levels of reporting detail. and possessions, subsidiaries in foreign countries, and all offices of Edge Act and 2. All transactions between domestic and foreign offices of a bank are reported agreement corporations wherever located. in "Net due from" and "Net due to" (lines 79 and 103). All other lines represent 7. This item contains the capital accounts of U.S. banks that have no Edge or transactions with parties other than the domestic and foreign offices of each bank. foreign operations and reflects the difference between domestic office assets and Since these intra-office transactions are erased by consolidation, total assets and liabilities of U.S. banks with Edge or foreign operations excluding the capital liabilities are the sum of all except intra-office balances. accounts of their Edge or foreign subsidiaries. 3. Foreign offices include branches in foreign countries and in U.S. territories N.A. This item is unavailable for all or some of the banks because of the lesser and possessions, subsidiaries in foreign countries, and all offices of Edge Act and detail available from banks without foreign offices, the inapplicability of certain agreement corporations wherever located. items to banks that have only domestic offices, and the absence of detail on a fully consolidated basis for banks with foreign offices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Federal Reserve Board of Governors PAUL A. VOLCKER, Chairman HENRY C. WALLICH FREDERICK H. SCHULTZ, Vice Chairman J. CHARLES PARTEE OFFICE OF BOARD MEMBERS OFFICE OF STAFF DIRECTOR FOR MONETARY AND FINANCIAL POLICY JOSEPH R. COYNE, Assistant to the Board DONALD J. WINN, Assistant to the Board for Congressional STEPHEN H. AXILROD, Staff Director Liaison EDWARD C. ETTIN, Deputy Staff Director FRANK O'BRIEN, JR., Special Assistant to the Board MURRAY ALTMANN, Assistant to the Board JOSEPH S. SIMS, Special Assistant to the Board PETER M. KEIR, Assistant to the Board STANLEY J. SIGEL, Assistant to the Board _ NORM AND 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 MICHAEL J. PRELL, Associate Director ROBERT A. EISENBEIS, Senior Deputy Associate Director tJoHN J. MINGO, Senior Deputy Associate Director OFFICE OF THE SECRETARY ELEANOR J. STOCKWELL, Senior Deputy Associate Director JAMES M. BRUNDY, Deputy Associate Director THEODORE E. ALLISON, Secretary JARED J. ENZLER, Deputy Associate Director BARBARA P. LOWREY, Assistant Secretary J. CORTLAND G. PERET, Deputy Associate Director JAMES MCAFEE, Assistant Secretary HELMUT F. WENDEL, Deputy Associate Director *JEFFERSON A. WALKER, Assistant Secretary MARTHA BETHEA, Assistant Director ROBERT M. FISHER, Assistant Director FREDERICK M. STRUBLE, Assistant Director DIVISION OF CONSUMER STEPHEN P. TAYLOR, Assistant Director AND COMMUNITY AFFAIRS LEVON H. GARABEDIAN, Assistant Director (Administration) JANET O. HART, Director GRIFFITH L. GARWOOD, Deputy Director DIVISION OF INTERNATIONAL FINANCE JERAULD C. KLUCKMAN, Associate Director GLENN E. LONEY, Assistant Director EDWIN M. TRUMAN, Director DELORES S. SMITH, Assistant Director ROBERT F. GEM MILL, Associate Director GEORGE B. HENRY, Associate Director CHARLES J. SIEGMAN, Associate Director DIVISION OF BANKING SAMUEL PIZER, Staff Adviser SUPERVISION AND REGULATION JEFFREY R. SHAFER, Deputy Associate Director DALE W. HENDERSON, Assistant Director JOHN E. RYAN, Director LARRY J. PROMISEL, Assistant Director FREDERICK R. DAHL, Associate Director RALPH W. SMITH, JR., Assistant Director WILLIAM TAYLOR, Associate Director WILLIAM W. WILES, Associate Director JACK M. EGERTSON, Assistant Director ROBERT A. JACOBSEN, Assistant Director DON E. KLINE, Assistant Director ROBERT S. PLOTKIN, Assistant Director THOMAS A. SID MAN, Assistant Director SAMUEL H. TALLEY, Assistant Director LAURA M. HOMER, Securities Credit Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 and Official Staff NANCY H. TEETERS LYLE E. GRAMLEY 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 ALTHAUSEN, 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 DAVID L. ROBINSON, Assistant Director DIVISION OF PERSONNEL RAYMOND L. TEED, Assistant Director DAVID L. SHANNON, Director JOHN R. WEIS, Assistant Director CHARLES W. WOOD, Assistant Director OFFICE OF THE CONTROLLER JOHN KAKALEC, Controller GEORGE E. LIVINGSTON, Assistant Controller DIVISION OF SUPPORT SERVICES DONALD E. ANDERSON, Director ROBERT E. FRAZIER, Assistant Director WALTER W. KREIMANN, Associate Director *On loan from the Federal Reserve Bank of Richmond. tOn leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Federal Reserve Bulletin • December 1980 FOMC and Advisory Councils FEDERAL OPEN MARKET COMMITTEE PAUL A. VOLCKER, Chairman ANTHONY M. SOLOMON, Vice Chairman LYLE E. GRAMLEY J. CHARLES PARTEE NANCY H. TEETERS ROGER GUFFEY EMMETT J. RICE HENRY C. WALLICH FRANK E. MORRIS LAWRENCE K. ROOS WILLIS J. WINN FREDERICK H. SCHULTZ MURRAY ALTMANN, Secretary RICHARD G. DAVIS, Associate Economist NORMANDR. 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 ROBERT M. SURD AM, 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 A. KLEIN, New York, New York MARY W. WALKER, Monroe, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A77 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK, Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 Robert M. Solow Frank E. Morris Robert P. Henderson James A. Mcintosh NEW YORK* 10045 Robert H. Knight, Esq. Anthony M. Solomon Boris Yavitz Thomas M. Timlen Buffalo ..14240 Frederick D. Berkeley, III John T. Keane PHILADELPHIA ..19105 John W. Eckman David P. Eastburn Werner C. Brown Richard L. Smoot CLEVELAND* 44101 Robert E. Kirby Willis J. Winn 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 Jimmie R. Monhollon Baltimore 21203 Catherine Byrne Doehler Robert D. McTeer, Jr. Charlotte 28230 Robert E. Elberson Stuart P. Fishburne Culpeper Communications and Records Center 22701 Albert D. Tinkelenberg ATLANTA ..30301 William A. Fickling, Jr. William F. Ford John H. Weitnauer, Jr. Robert P. Forrestal Birmingham 35202 Harold B. Blach, Jr. Hiram J. Honea Jacksonville 32231 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 Charles S. Youngblood Robert E. Matthews MINNEAPOLIS 55480 Stephen F. Keating E. Gerald Corrigan 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 L. 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 George H. Weyerhaeuser 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

A78 Federal Reserve Board Publications 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- SURVEY OF CHANGES IN FAMILY FINANCES. 1968. 321 pp. TIONS. 1974. 125 pp. $1.00 each; 10 or more to one address, $.85 each. ANNUAL REPORT. REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or OF THE U.S. GOVERNMENT SECURITIES MARKET. 1969. $2.00 each in the United States, its possessions, Canada, 48 pp. $.25 each; 10 or more to one address, $.20 each. and Mexico; 10 or more of same issue to one address, JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOV- $18.00 per year or $1.75 each. Elsewhere, $24.00 per ERNMENT SECURITIES MARKET; STAFF STUDIES—PART year or $2.50 each. 1. 1970. 86 pp. $.50 each; 10 or more to one address, $.40 BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint each. Part 2, 1971. 153 pp. and Part 3, 1973. 131 pp. Each of Part I only) 1976. 682 pp. $5.00. volume $1.00; 10 or more to one address, $.85 each. BANKING AND MONETARY STATISTICS, 1941-1970. 1976. OPEN MARKET POLICIES AND OPERATING PROCEDURES— 1,168 pp. $15.00. STAFF STUDIES. 1971. 218 pp. $2.00 each; 10 or more to ANNUAL STATISTICAL DIGEST one address, $1.75 each. 1971-75. 1976. 339 pp. $4.00 per copy for each paid sub- REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHAscription to Federal Reserve Bulletin; all others $5.00 NISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. each. 1972. 220 pp. Each volume $3.00; 10 or more to one ad- 1972-76. 1977. 377 pp. $10.00 per copy. dress, $2.50 each. 1973-77. 1978. 361 pp. $12.00 per copy. THE ECONOMETRICS OF PRICE DETERMINATION CONFER- 1974-78. 1980. 305 pp. $10.00 per copy. ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 FEDERAL RESERVE CHART BOOK. Issued four times a year in pp. Cloth ed. $5.00 each; 10 or more to one address, February, May, August, and November. Subscription $4.50 each. Paper ed. $4.00 each; 10 or more to one adincludes one issue of Historical Chart Book. $7.00 per dress, $3.60 each. year or $2.00 each in the United States, its possessions, FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE Canada, and Mexico. Elsewhere, $10.00 per year or FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. 487 $3.00 each. pp. $4.00 each; 10 or more to one address, $3.60 each. HISTORICAL CHART BOOK. Issued annually in Sept. Subscrip- LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS. tion to Federal Reserve Chart Book includes one issue. 1973. 271 pp. $3.50 each; 10 or more to one address, $1.25 each in the United States, its possessions, Canada, $3.00 each. and Mexico; 10 or more to one address, $1.00 each. Else- IMPROVING THE MONETARY AGGREGATES: REPORT OF THE where, $1.50 each. ADVISORY COMMITTEE ON MONETARY STATISTICS. CAPITAL MARKET DEVELOPMENTS. Weekly. $15.00 per year 1976. 43 pp. $1.00 each; 10 or more to one address, $.85 or $.40 each in the United States, its possessions, Canaeach. da, and Mexico; 10 or more of same issue to one address, ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— $13.50 per year or $.35 each. Elsewhere, $20.00 per year Regulation Z) Vol. I (Regular Transactions). 1969. 100 or $.50 each. pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- volume $1.00; 10 or more of same volume to one ad- RIES OF CHARTS. Weekly. $15.00 per year or $.40 each in dress, $.85 each. the United States, its possessions, Canada, and Mexico; 10 or more of same issue to one address, $13.50 per year FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one or $.35 each. Elsewhere, $20.00 per year or $.50 each. address, $1.50 each. THE FEDERAL RESERVE ACT, as amended through December 1976, with an appendix containing provisions of certain THE BANK HOLDING COMPANY MOVEMENT TO 1978: A COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to other statutes affecting the Federal Reserve System. 307 one address, $2.25 each. pp. $2.50. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- IMPROVING THE MONETARY AGGREGATES: STAFF PAPERS. 1978. 170 pp. $4.00 each; 10 or more to one address, ERAL RESERVE SYSTEM $3.75 each. PUBLISHED INTERPRETATIONS OF THE BOARD OF GOVER- 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. $1.75 each; 10 or more to one address, $4.00 each. each; 10 or more to one address, $1.50 each. BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. 102 INTRODUCTION TO FLOW OF FUNDS, 1980. 68 pp. $1.50 each; pp. $1.00 each; 10 or more to one address, $.85 each. 10 or more to one address, $1.25 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 CONSUMER EDUCATION PAMPHLETS MEASUREMENT OF CAPACITY UTILIZATION: PROBLEMS AND Short pamphlets suitable for classroom use. Multiple cop- TASKS, by Frank de Leeuw, Lawrence R. Forest, Jr., ies available without charge. Richard D. Raddock, and Zoltan E. Kenessey. July 1979. 264 pp. Alice in Debitland THE GNMA-GUARANTEED PASSTHROUGH SECURITY: MAR- The Board of Governors of the Federal Reserve System KET DEVELOPMENT AND IMPLICATIONS FOR THE Consumer Handbook To Credit Protection Laws GROWTH AND STABILITY OF HOME MORTGAGE LEND- The Equal Credit Opportunity Act and . . . Age ING, by David F. Seiders. Dec. 1979. 65 pp. The Equal Credit Opportunity Act and . . . Credit Rights in FOREIGN OWNERSHIP AND THE PERFORMANCE OF U.S. Housing BANKS, by James V. Houpt. July 1980. 27 pp. The Equal Credit Opportunity Act and . . . Doctors, Lawyers, Small Retailers, and Others Who May Provide Incidental Credit Printed in Full in the Bulletin The Equal Credit Opportunity Act and . . . Women Fair Credit Billing AN ASSESSMENT OF BANK HOLDING COMPANIES, by Robert The Federal Open Market Committee J. Lawrence and Samuel H. Talley. January 1976. Federal Reserve Bank Board of Directors Federal Reserve Banks Federal Reserve Glossary How to File A Consumer Credit Complaint If You Borrow To Buy Stock REPRINTS If You Use A Credit Card Most of the articles reprinted do not exceed 12 pages. Truth in Leasing U.S. Currency Measures of Security Credit. 12/70. What Truth in Lending Means to You Revision of Bank Credit Series. 12/71. Assets and Liabilities of Foreign Branches of U.S. Banks. 2/72. STAFF STUDIES Bank Debits, Deposits, and Deposit Turnover—Revised Se- Studies and papers on economic and financial subjects that ries. 7/72. are of general interest. Rates on Consumer Instalment Loans. 9/73. New Series for Large Manufacturing Corporation. 10/73. Summaries Only Printed in the Bulletin The Structure of Margin Credit. 4/75. Requests to obtain single copies of the full text or to be Industrial Electric Power Use. 1/76. added to the mailing list for the series may be sent to Pub- Revised Series for Member Bank Deposits and Aggregate Relications Services. serves. 4/76. Industrial Production—1976 Revision. 6/76. THE RELATIONSHIP BETWEEN RESERVE RATIOS AND THE Federal Reserve Operations in Payment Mechanisms: A MONETARY AGGREGATES UNDER RESERVES AND FED- Summary. 6/76. ERAL FUNDS RATE OPERATING TARGETS, by Kenneth J. The Commercial Paper Market. 6/77. Kopecky. Dec. 1978. 58 pp. The Federal Budget in the 1970's. 9/78. TIE-INS BETWEEN THE GRANTING OF CREDIT AND SALES OF Redefining the Monetary Aggregates. 1/79. INSURANCE BY BANK HOLDING COMPANIES AND OTHER Implementation of the International Banking Act. 10/79. LENDERS, by Robert A. Eisenbeis and Paul R. Schweit- U.S. International Transactions in 1979: Another Round of zer. Feb. 1979. 75 pp. Oil Price Increases. 4/80. INNOVATIONS IN BANK LOAN CONTRACTING; RECENT EVI- Perspectives on Personal Saving. 8/80. DENCE by Paul W. Boltz and Tim S. Campbell. May The Impact of Rising Oil Prices on the Major Foreign Indus- 1979. 40 pp. trial Countries. 10/80. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 SCHED ULE OF DA TES FOR PERIODIC S TA TISTICAL RELEASES - BOARD OF GOVERNORS OF THE FEDERAL RESERVE S YSTEM1 Date or period Approximate to which data Weekly Releases release date refer Monday Week ended previous Aggregate Reserves and Member Bank Deposits. H.3 (502) [1.22] Wednesday Friday Week ended previous Actions of the Board; Applications and Reports. H.2 (501) Saturday * Assets and Liabilities of Domestically Chartered Commercial Banks. Wednesday Wednesday, 2 weeks earlier H.8 (510) [1.24] Changes in State Member Banks. K.3 (615) Tuesday Week ended previous Saturday * Factors Affecting Reserve of Depository Institutions and Condition Friday Week ended previous Statement of Federal Reserve Banks. H.4.1 (503) [1.11] Wednesday Foreign Exchange Rates. H.10 (512) [3.28] Monday Week ended previous Friday Money Stock Measures. H.6 (508) [1.21] Friday Week ended Wednesday of previous week Selected Borrowings in Immediately Available Funds of Large Member Wednesday Week ended Thursday of Banks. H.5 (507) [1.13] previous week Selected Interest Rates. H.15 (519) [1.36] Monday Week ended previous Saturday Weekly Consolidated Condition Report of Large Commercial Banks Friday Wednesday, 1 week earlier and Domestic Subsidiaries. H.4.2 (504) [1.29] Weekly Summary of Banking and Credit Measures. H.9 (511) Friday Week ended previous Wednesday; and week ended Wednesday of previous week Monthly releases Capacity Utilization: Manufacturing and Materials. G.3 (402) [2.11] Midmonth Previous month Changes in Status of Banks and Branches. G.4.5 (404) 25th Previous month Commercial and Industrial Loans to U.S. Addresses Excluding Bankers 1st Wednesday Last Wednesday of previous Acceptances and Commercial Paper by Industry. G.27 (429) month Consumer Installment Credit. G. 19 (421) [1.57, 1.58] 3rd working day 2nd month previous Debits and Deposit Turnover at Commercial Banks. G.6 (406) [1.20] 25th Previous month Federal Reserve System Memorandum on Exchange Charges. 5th Period since last release K. 14 (628) Finance Companies. G.20 (422) [1.53, 1.54] 5th working day 2nd month previous Foreign Exchange Rates. G.5 (405) [3.28] 1st Previous month Release dates are those anticipated or usually met. However, some release dates are normally subject to change because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date later than anticipated. The BULLETIN table that reports these data is designated in the brackets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 Date or period Approximate to which data refer Monthly releases—Continued release date Previous month Industrial Production. G. 12.3 (414) [2.13] Midmonth 2nd month previous Loan Commitments at Selected Large Commercial Banks. G.21 (423) 20th Loans and Investments at all Commercial Banks. G.7 (407) [1.23] 20th Previous month Major Nondeposit Funds of Commercial Banks. G. 10 (411) [1.31.1] 20th Previous month Maturity Distribution of Outstanding Negotiable Time Certificates of 24th Last Wednesday of pre- Deposit. G.9 (410) vious month Research Library-Recent Acquisitions. G.15 (417) 1st Previous month Selected Interest Rates. G.13 (415) [1.36] 6th Previous month Summary of Equity Security Transactions. G. 16 (418) Last week Release date Quarterly releases Float Components Report E.14 (124) 3rd week Previous quarter Automobile Credit. E.4 (114) 14th of April, July, Previous quarter October, and January Finance Rates and Other Terms on Selected Types of Consumer 25th of January, 2nd month previous Installment Credit Extended by Major Finance Companies. E.10 (120) April, July, and October Flow of Funds: Seasonally adjusted and unadjusted. Z.l (780) [1.59, 15th of February, Previous quarter 1.60] May, August, and November Geographical Distribution of Assets and Liabilities of Major Foreign 15th of March, Previous quarter Branches of U.S. Banks. E.ll (121) June, September, and December Finance Rates on Selected Consumer Installment Loans at Reporting 15th of March, February, May, Au- Commercial Banks. E. 12 (122) June, September, gust, and November and December Survey of Terms of Bank Lending. E.2 (111) [1.35] 15th of March, February, May, Au- June, September, gust, and November and December Semiannual releases Assets and Liabilities of Commercial Banks, by Class of Bank. E.3.4 May and November End of previous December (113) [1.26] and June Check Collection Services-Federal Reserve System. E.9 (119) February and July Previous 6 months List of OTC Margin Stocks. E.7 (117) April and October Release date Assets, Liabilities, and Capital Accounts of Commercial and Mutual May and November End of previous December Savings Banks—Reports of Call. (Joint Release of the Federal and June Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency. Published and distributed by FDIC.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Date or period Approximate to which data Annual releases release date refer Aggregate Summaries of Annual Surveys of Security Credit Extension. February End of previous June C.2 (101) Bank Holding Companies and Subsidiary Banks. C.6 (105) March Previous year Insured Bank Income by Size of Bank. C.4 (103) End of May Previous year State Member Banks of Federal Reserve System and Nonmember 1 st quarter End of previous year Banks that Maintain Clearing Accounts with Federal Reserve Banks. G.4 (403) Supplements issued monthly. 15 th Previous month Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 Index to Statistical Tables References are to pages A-3 through A-73 alt/ he prefix "A" is omitted in this index ACCEPTANCES, bankers, 10, 23, 25 Demand deposits—Continued Agricultural loans, commercial banks, 18, 19, 20, 24 Subject to reserve requirements, 14 Assets and liabilities (See also Foreigners) Turnover, 12 Banks, by classes, 17,18-21, 27, 68-73 Deposits (See also specific types) Domestic finance companies, 37 Banks, by classes, 3, 17, 18-21,27,69,71,73 Federal Reserve Banks, 11 Federal Reserve Banks, 4,11 Nonfinancial corporations, current, 36 Turnover, 12 Automobiles Discount rates at Reserve Banks (See Interest Consumer installment credit, 40, 41 rates) Production, 46, 47 Discounts and advances by Reserve Banks (See Loans) BANKERS balances, 17, 18-20, 68, 70, 72 Dividends, corporate, 35 (See also Foreigners) Banks for Cooperatives, 33 EMPLOYMENT, 44, 45 Bonds (See also U.S. government securities) Eurodollars, 25 New issues, 34 Yields, 3 FARM mortgage loans, 39 Branch banks, 15, 21, 54 Farmers Home Administration, 39 Business activity, nonfinancial, 44 Federal agency obligations, 4,10, 11, 12, 32 Business expenditures on new plant and equipment, 36 Federal and federally sponsored credit agencies, 33 Business loans (See Commercial and industrial loans) Federal finance Debt subject to statutory limitation and types and CAPACITY utilization, 44 ownership of gross debt, 30 Capital accounts Receipts and outlays, 28, 29 Banks, by classes, 17, 69, 71, 73 Treasury operating balance, 28 Federal Reserve Banks, 11 Federal Financing Bank, 28, 33 Central banks, 66 Federal funds, 3, 6, 18, 19, 20, 25, 28 Certificates of deposit, 21, 25 Federal Home Loan Banks, 33 Commercial and industrial loans Federal Home Loan Mortgage Corporation, 33, 38, 39 Commercial banks, 15, 24 Federal Housing Administration, 33, 38, 39 Weekly reporting banks, 18-21, 22 Federal Intermediate Credit Banks, 33 Commercial banks Federal Land Banks, 33, 39 Assets and liabilities, 3, 15,17, 18-21,68-73 Federal National Mortgage Association, 33, 38, 39 Business loans, 24 Federal Reserve Banks Commercial and industrial loans, 22, 24 Condition statement, 11 Consumer loans held, by type, 40, 41 Discount rates (See Interest rates) Loans sold outright, 21 U.S. government securities held, 4, 11, 12, 30, 31 Nondeposit funds, 16 Federal Reserve credit, 4, 5, 11, 12 Number by classes, 17, 69,71, 73 Federal Reserve notes, 11 Real estate mortgages held, by holder and property, 39 Federally sponsored credit agencies, 33 Commercial paper, 3, 23, 25, 37 Finance companies Condition statements (See Assets and liabilities) Assets and liabilities, 37 Construction, 44, 48 Business credit, 37 Consumer installment credit, 40, 41 Loans, 18, 19, 20, 40, 41 Consumer prices, 44, 49 Paper, 23, 25 Consumption expenditures, 50, 51 Financial institutions, loans to, 18, 19, 20 Corporations Float, 4 Profits and their distribution, 35 Flow of funds, 42, 43 Security issues, 34, 63 Foreign Cost of living (See Consumer prices) Currency operations, 11 Credit unions, 27, 40, 41 Deposits in U.S. banks, 4,11, 18, 19, 20 Currency and coin, 5, 17, 68,70, 72 Exchange rates, 66 Currency in circulation, 4,13 Trade, 53 Customer credit, stock market, 26 Foreigners Claims on, 54, 56, 59, 60,61, 65 DEBITS to deposit accounts, 12 Liabilities to, 21, 54-58, 62-64 Debt (See specific types of debt or securities) Demand deposits GOLD Adjusted, commercial banks, 12,14 Certificates, 11 Banks, by classes, 17, 18-21, 69, 71, 73 Stock,4,53 Ownership by individuals, partnerships, and Government National Mortgage Association, 33, 38, 39 corporations, 23 Gross national product, 50, 51 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Federal Reserve Bulletin • December 1980 HOUSING, new and existing units, 48 REAL estate loans Banks, by classes, 18-20, 27, 29 INCOME, personal and national, 44, 50, 51 Life insurance companies, 27 Industrial production, 44, 46 Mortgage terms, yields, and activity, 3, 38 Installment loans, 40, 41 Type of holder and property mortgaged, 39 Insurance companies, 27, 30, 31, 39 Repurchase agreements and federal funds, 6, 18, 19, 20 Interbank loans and deposits, 17 Reserve requirements, member banks, 8 Interest rates Reserves Bonds, 3 Commercial banks, 17, 68,70, 72 Business loans of banks, 24 Federal Reserve Banks, 11 Federal Reserve Banks, 3,7 Member banks, 3, 4, 5, 14,17 Foreign countries, 66 U.S. reserve assets, 53 Money and capital markets, 3, 25 Residential mortgage loans, 38 Mortgages, 3, 38 Retail credit and retail sales, 40, 41, 44 Prime rate, commercial banks, 24 Time and savings deposits, 9 SAVING International capital transactions of the United States, 54-65 Flow of funds, 42, 43 International organizations, 54-59, 62-65 National income accounts, 51 Inventories, 50 Savings and loan assns., 3, 9, 27, 31, 39, 42 Investment companies, issues and assets, 35 Savings deposits (See Time deposits) Investments (See also specific types) Savings institutions, selected assets, 27 Banks, by classes, 17, 27 Securities (See also U.S. government securities) Commercial banks, 3, 15, 17, 18-20, 68, 70, 72 Federal and federally sponsored agencies, 33 Federal Reserve Banks, 11, 12 Foreign transactions, 63 Life insurance companies, 27 New issues, 34 Savings and loan associations, 27 Prices, 26 Special drawing rights, 4, 11, 52, 53 LABOR force, 45 State and local governments Life insurance companies (See Insurance companies) Deposits, 18, 19, 20 Loans (See also specific types) Holdings of U.S. government securities, 30, 31 Banks, by classes, 17, 18-21, 27 New security issues, 34 Commercial banks, 3, 15,17, 18-21, 22,24, 68, 70, 72 Ownership of securities of, 18, 19, 20, 27 Federal Reserve Banks, 3,4, 5, 7, 11, 12 Yields of securities, 3 Insurance companies, 27, 39 Stock market, 26 Insured or guaranteed by United States, 38, 39 Stocks (See also Securities) Savings and loan associations, 27 New issues, 34 Prices, 26 MANUFACTURING Capacity utilization, 44 TAX receipts, federal, 29 Production, 44, 47 Time deposits, 3, 9, 12, 14, 17, 18-21,69,71,73 Margin requirements, 26 Trade,foreign, 53 Member banks Treasury currency, Treasury cash, 4 Assets and liabilities, by classes, 17 Treasury deposits, 4, 11, 28 Borrowings at Federal Reserve Banks, 5,11 Treasury operating balance, 28 Federal funds and repurchase agreements, 6 Number, 17 UNEMPLOYMENT, 45 Reserve requirements, 8 U.S. balance of payments, 52 Reserves and related items, 3, 4, 5, 14 U.S. government balances Mining production, 47 Commercial bank holdings, 18, 19, 20 Mobile home shipments, 48 Member bank holdings, 14 Monetary aggregates, 3, 14 Treasury deposits at Reserve Banks, 4, 11, 28 Money and capital market rates (See Interest rates) U.S. government securities Money stock measures and components, 3,13 Bank holdings, 17, 18-20,27,30,31,68,70,72 Mortgages (See Real estate loans) Dealer transactions, positions, and financing, 32 Mutual funds (See Investment companies) Federal Reserve Bank holdings, 4, 11,12, 30, 31 Mutual savings banks, 3, 9, 18-20, 27, 30, 31, 39 Foreign and international holdings and transactions, 11, 30, 62 NATIONAL defense outlays, 29 Open market transactions, 10 National income, 50 Outstanding, by type and ownership, 30, 31 Rates, 3, 25 OPEN market transactions, 10 Utilities, production, 47 PERSONAL income, 51 Prices VETERANS Administration, 38, 39 Consumer and producer, 44, 49 Stock market, 26 WEEKLY reporting banks, 18-22 Prime rate, commercial banks, 24 Wholesale (producer) prices, 44,49 Production, 44,46 Profits, corporate, 35 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 Index to Volume 66 GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES Other ("A" pages) Other ("A" pages) Index to Index to Issue Text Total tables Issue Text Total tables January .... 1-86 1-78 76-77 July 531-612 1-78 76-77 February .. 87-176 1-78 76-77 August 613-682 1-86 83-84 March 177-282 1-82 80-81 September . 683-816 1-78 76-77 April 283-360 1-78 76-77 October .... 817-870 1-122 120-121 May 361-436 1-78 76-77 November . 871-942 1-76 74-75 June 437-530 1-86 83-84 December . 943-1002 1-100 83-84 The "A" pages referred to in this index are in the December issue. Pages Pages Ahmanson, Caroline L., appointed Class C director and Bank holding companies—Continued Deputy Chairman, San Francisco 280 Divestiture requirements under Bank Holding Com- Andrew, Fred W., appointed director, Los Angeles pany Act, policy statements with program for guid- Branch 280 ance 33,478 Andrews, Dan B., elected Class A director, Atlanta ... 271 Foreign, statement on nonbanking activities and Annual Report for 1979 322 amendments to Regulation K 550, 963 Annual Statistical Digest, 1974-1978 37 Formation of certain one-bank holding companies, Articles policy statement 320 Banking, interstate, competitive effects 1 Interest on deposits, amendments to and interpretation Community Reinvestment Act, progress report .... 87 of Regulation Q 320, 334, 882, 903 Corporate financing patterns, recent 683 Investments, amendment of Regulation K . . . . 963, 974 Credit-granting systems, selection and disclosure of Nonbanking activities, statement and amendments to reasons for adverse action 727 Regulation K 555, 963 Depository Institutions Deregulation and Monetary Policy statements for bank supervisors Control Act of 1980 444 affecting 35 Electronic fund transfers 290 Regulation Y (See Regulations) Financial developments, domestic, quarterly reports Bank Holding Company Act to Congress 115, 361, 627, 871 Amendment, proposed, statement 957 Foreign exchange operations of Treasury and Federal Applications under, protested, policy statement for Reserve, reports 190, 454, 707, 953 handling 962 Households, recent financial behavior 437 Divestiture requirements under, policy statements Insured commercial banks, 1979, profitability 691 with program for guidance of pertinent bank hold- International transactions of United States in 1979; ing companies 33,478 another round of oil price increases 283 Grandfather privileges under, determination regard- Monetary aggregates, redefined 97 ing Schroders Limited, London, England 255 Oil, impact of rising prices on major foreign industrial Orders issued under countries 817 ADCO Company 608 Personal saving, perspectives 613 Ada Banc Shares, Inc 416 Production of motor vehicles in 1979 123 Adams Bankcorp, Inc 864 Statements and reports to Congress {See Statements Adrian Building Corporation 525 to Congress) Aetna Bancorp, Inc 864 Assets and liabilities of overseas branches of member Affiliated Bankshares of Colorado, Inc 262,525 banks 831 Affiliated Capital Corporation 966 Atkins, Thomas I., appointed Class C director, Boston . 267 Alabama Bancorporation 810 Albany Bancshares, Inc 677 Bank holding companies (For orders issued to individual Algemene Maatschappij voor Nijverheidskrediet companies under the Bank Holding Company Act, N.V., Antwerp, Belgium 918 see Bank Holding Company Act) Allied Bancshares, Inc 936 Acquisitions, statement on proposed amendment to Altamaha Bancshares, Inc 996 Bank Holding Company Act 957 AmTu, Inc 936 Applications for formation, proposed amendment of Amador Bancshares, Inc 810 Digitized for FRcArSiteErRia applied 37 Ameribanc, Inc 524,608 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 Federal Reserve Bulletin • December 1980 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. American Bancorp., Inc 677 Blue Mound Bancshares, Inc 355 American Bancorporation of Merritt Island 810 Bosque Corporation 864 American Bancorporation of Muskogee, Inc 608 Bottom Interests of Nevada, Inc 864 American Bancshares, Inc 259 Bradley Bancorp 937 American Bancshares-Red River, Inc 433 Bradley Bancorporation, Inc 82 American Financial Corporation 994 Brainard Agency Company 813 American Financial Services, Inc 867 Breckenridge Bancorporation, Inc 433 American Fletcher Corporation 262, 859 Bridger Company 940 American Heritage Corporation 681 Brownfield Bancshares, Inc 864 American Independent Bancshares, Inc 810 Browns Valley Bancshares, Inc 810 American National Agency, Inc 867 Buckeye Bancorporation 356 American National Corporation 261 Bucklin Bankshares, Inc 174 American National Holding Company 810 Buffalo Bancshares, Inc 677 American National Sidney Corp 159 Buffalo National Bancshares, Inc 82 American State Bancshares, Inc 936 Bushton Investment Company, Inc 868 American State Agency, Inc 810 CB & T Bancshares, Inc 433 AmeriTrust Corporation and Cincinnati Trust Com- CB Bancshares, Inc 864 pany 238 CBTcorp 810 Ankeny Investment Co 996 CCBCorp 976 Anna Bancshares, Inc 608 CDB Corporation 976 Antioch Bancshares, Inc 608 CLC Enterprises, Inc 940 Antioch Holding Company 996 Caldwell Bancshares, Inc 525 Apple Valley Bancshares, Inc 355 Callao Bancshares, Inc 82 Arendts, Inc 935 Canton Bancorporation, Inc 864 Arkansas State Bankcorporation, Inc 355 Capital Bancorp 608 Arvada Bancshares, Ltd 261 Capital Bancshares, Inc 775,864 Ashton Investment Company 611 Carbondale Bancshares, Inc 677 Aspen Bancorp, Inc 59 Carleton Agency, Inc 611 Atkinson County Bankshares Corporation 936 Carthage Holding Company, Inc 82 Augusta Financial Corporation 868 Cary/Grove Bancorp, Inc 259 Aurora Bancshares Corporation 433 Catoosa Bancshares, Inc 937 B.C.Y. Bancorp, Inc 936 Cattle Crossing, Inc 174 BGM Bancorporation 259 Cedar Point Bancshares, Inc 997 B.P.C. Corporation 996 Cen-Tex Bancshares, Inc 937 B. P. Corp 868 Centennial Bancorporation 947 BT Bancshares, Inc 937 Central Bancompany 60,677 BTNY 936 Central Bancorp 525 Badger Bancshares, Inc 936 Central Bancorp, Inc 864 Banc One Corporation 174,526 Central Bancorporation, Inc 82, 864 Banco Central, S.A 677 Central Colorado Company and C. C. B., Inc 655 Banco Exterior de Espana, S. A., Madrid, Spain . . 504 Central Indiana Bancorp, Inc 677 Banco Gering Corporation 677 Central National Bancshares, Inc 677 Banco Zaragozano, S. A., Madrid, Spain 975 CENTRAL TRUST INVESTMENT, INC 997 Bandera Bancshares Inc 810 Central Wisconsin Bankshares, Inc 356 Bank Corporation of Georgia 608 Centran Corporation 810 Bank Holding Company of Santa Fe 506 Century Banks, Inc 868 Bank of New Hampshire Corporation 261 Chanhassen Financial Services, Inc 937 Bank of New York Company, Inc 262,793 Chase Financial Services, Inc 525 Bank of Virginia Company 259 Chase Manhattan Corporation 168, 983 BankAmerica Corporation 511 Chatham Bancshares, Inc 525 Banks of Iowa, Inc 259 Chemical New York Corporation 662 Bankshares of Hawley, Inc 864 Chicago Holding Company 433 Bankshares of Park County, Inc 608 Chickasha Bancshares, Inc 937 Barclays Bank Limited and Barclays Bank Inter- Childress Bancshares, Inc 160 national Limited, London, England 980 Chrisman Bancshares, Inc 259 Barnes Investment Corporation 940 Circle Management Company 611,813 Barnett Banks of Florida, Inc 64, 524 CitbankCorp 997 Barrington Bancorporation, Inc 976 Citicorp 585, 587, 813, 914 Bay Bancorporation, Inc 525 Citizens Banco, Inc 811 Bellevue Service Co 868 Citizens Bancorp 937 Beutler, Inc 174,940 Citizens Bancorp., Inc 525 Blackduck Bancshares, Inc 355 Citizens Bancshares, Inc 1000 Blackwater Bancshares, Inc 525 Citizens Capital Corporation 259 Blue Hill Agency, Inc 681 Citizens Incorporated 811,907 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 66 A87 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Citizens Investment Co 868 DuBank Holding Inc 937 Citizen's National Corp 811 Dublin Bancshares, Inc 259 Citizens Northern Company, Inc 864 Durant Bancorp, Inc 811 Citizens State Agency of Tyler, Inc 867 DuRoc Investment Company 868, 1000 CITIZENS STATE BANCORPORATION 82 Eagle National Holding Company, Inc 81 Clarkfield Bancshares, Inc 678 East Texas Bancorporation, Inc 997 Clayton Bancshares Corporation 608 East Troy Bancshares, Inc 678 Clearwater Development Co., Inc 611 Edgewood Bancshares, Inc 526 Clover Bottom Estates, Inc 81 Edwardsville Management Company 678 Coastal Bankshares, Inc 608 Elba State Company 526 Colonial American Bankshares Corporation 82 Elizabethtown Bancshares, Inc 82 Colorado Springs Banking Corporation 525 Elk Grove Bancorp, Inc 259 Columbia National Bankshares, Inc 608 Elk River Bancshares, Inc 609 Comanche Land and Cattle Company 171 Ellingson Corporation 814 Commerce BancShares of Wyoming, Inc 259 Ellis Banking Corporation 811 Commerce Bank Corporation 506 Elsie, Inc 175 Commerce Southwest Inc 525,937 Empire Holdings, Inc 258 Commercial Bancshares, Inc 356 Empire Holdings Limited, Road Town, Tortola, Commercial Bankshares, Inc 82 British Virgin Islands 258 Commercial Bankstock, Inc 678 Equitable Bankshares of Colorado, Inc 811 Commercial Company, Inc 433 Erie Bancorp., Inc 937 Community Bancshares of Tulsa, Inc 810 Escrow Corporation of America, Inc 813 Concho Bancshares, Inc 434 Eureka Financial Corporation 997 Continental Bancshares, Inc 811,865 Eustis Bancshares, Inc 678 Continental Illinois Corporation 940 Evans Insurance Agency, Inc 79 Converse County Capital Corporation 525 Everman Bank Shares, Inc 997 Coronado Bancshares, Inc 525 Exchange Bancshares, Inc 609 Corwith State Bancshares, Inc 867 Exchange BancShares, Inc., of St. Paul 865 County Bancshares, Inc 356 Exchange State Bancorporation, Inc 937 Coushatta Bancshares, Inc 261 Extra Co 678 Cowden Bancorp, Inc 609 F & M Bancorporation, Inc 865 Coweta Bancshares, Inc 937 F and M Bancshares, Inc 997 Crawfordsville Insurance Agency, Inc 813,937 F&M Bank Shares, Inc 174 CreditBank Shares, Inc 525 F&M Bankshares, Inc 508 Crested Butte Bankshares, Inc 82 F and O, Inc 678 Crete Investment Corporation 997 FB&T Financial Corporation 526 Crews Banking Corporation 908 FBHCorp 997 Crocker National Corporation 66 FCBCorp 997 Crofton State Company 609 FMBCorp 997 Cross Financial Corporation 814 FNB Bancorp 811 Cumberland Financial Services, Inc 868 FNB BanShares, Inc 259 Cumming Bancshares, Inc 937 F.N.B. Stinnett BancShares, Inc 997 Cunningham Agency, Inc 358 F.N.B.C. of La Grange, Inc 609 Currie Bancorporation, Inc 434 FSB Bancorp, Inc 609 Curtis BanCo, Inc 526 FSB Holding Company 434 D & B Holding Company, Inc 82 F.S.B. Holding Company 678 Dallas Bancshares, Inc 678 Fabank,Inc 611 Danville Bancshares, Inc 526 Falmouth Bancorporation 174 Darfur Bancshares, Inc 678 Fannin Bancshares, Inc 173 Darwin Bancshares, Inc 811 Farmers and Merchants Financial Corp 259 Delano State Agency, Inc 82 Farmers & Traders Bancorp of Mt. Olivet, Inc. ... 526 Delaware Service Co., Inc 861 Farmers Bancshares of Cordell 865 Desoto Banking Corporation 997 Farmers Exchange Bancorporation, Inc 937 DETROITBANK CORPORATION 242, 609 Fayette Bancorporation 526 Dewco Agency Company 604, 940 Ferry ville Bancshares, Inc 259 Diboll State Bancshares, Inc 434 Fidelcor, Inc 258 Dominion Bankshares Corporation 574 Fidelity Ban Corporation 434 Dominion Banqueshares Limited 997 Fidelity Banc Corporation 678 Douglas Bancorporation, Inc 937 Fidelity Corporation 356 Douglas County Bancshares, Inc 82 Fidelity Southern Corporation 259 Dream, Inc 940 Fidelity Union Bancorporation 358,576 Drexel Bancshares, Inc 434 Fifth Third Bancorp 609 Drexel Holding Company 810 Financial National Bancshares, Co 434 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A88 Federal Reserve Bulletin • December 1980 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Financial Services Corporation of the Midwest ... 69 First National Bancorporation, Inc 356 First Alabama Bancshares, Inc 811,937 First National Bancshares in Newton, Inc 777 First American Bancshares, Inc 356 First National Bancshares of Hico, Inc 609 First American Bank Corporation 81, 524,607 First National Bankshares of Sheridan 356 First Amherst Bancshares, Inc 678 First National Beatrice Corporation 865 First Amtenn Corporation 435 First National Boston Corporation 162,175 First Atlantic Corporation 175 First National Charter Corporation 174,609 First Bancorp of N. H., Inc 856 First National Cincinnati Corporation 678 FIRST BANCSHARES, INC 609 First National Company 811 First Bank Corporation 937 First National Corporation 418 First Bank Holding Company of Lakewood 996 First National Corporation in Ontonagon 679 First Bank System, Inc 940 First National Corporation of El Reo, Inc 663 First Bankshares Corp. of S.C 83 First National Hayes Center Corp 259 First Beemer Corporation 356 First National in Cordell Bancshares, Inc 679 First Belleville Bancshares, Inc 997 First National of Henryetta, Inc 526 First Bells Bankshares, Inc 356 First National State Bancorporation 997 First Belmond BanCorporation 937 First Noble Holding Company 434 First Bloomington Corporation 356 First Norman Bancshares, Inc 997 First Charter Financial Corporation 82 First of Chadron Bank Corporation 175 First Chicago Corporation 592, 984 First of Herington, Inc 1000 First Chico Bancshares, Inc. 261 First Ohio Bancshares, Inc 259 FIRST CICERO BANC CORPORATION 82 First Oklahoma Bancorporation, Inc 611 First Citizens Bancorp 259 First Paris Holding Company 609 First Citizens Financial Corporation of Vivian, Inc. 259 First Paullina Bancorp 938 First City Bancorp, Inc 937 First Pennsylvania Corporation .... 598,681,932,940 First City Bancorporation of Texas, Inc. . . 81,677,794 First Poteau Corporation 679 First Collinsville Corp 811 First Railroad & Banking Company of Georgia ... 814 First Colonial Bankshares Corporation 938 First Riesel Corporation 356 First Commercial Bancorp 678 First Schaumburg Bancorporation, Inc 679 First Dakota Financial 82 First Schiller Bancorp, Inc 811 First Decatur Bancshares, Inc 865 First Schulenburg Financial Corporation 938 First Deerfield Corporation 678 First Security Bancorp., Inc 526 First Denham Bancshares, Inc 175 First Security Bancshares, Inc 526, 997 First Des Plaines Corporation 526 First South Bankcorp 679 First Duncanville Corporation 678 First Southeast Missouri Bancorporation, Inc. . . . 938 First Eldorado Bancorporation, Inc 678 First State Agency of Lake Lillian, Inc 262 First Englewood Bank Corp 938 First State Bancshares, Inc 938 First Fabens Bancorporation, Inc 526 1st State Corporation 673 First Financial Bancorporation, Inc 261 First State Financial Corporation 998 First Financial Group, Inc 609 First State Financial Corporation East 259 First Financial Group of New Hampshire, Inc. 433, 594 First State Holding Company, Inc 938 First Forest Park Corporation 174 First Tahlequah Corp 175 First Freeport Corporation 677 First Tennessee National Corporation 83 First Grand Prairie Bank Shares, Inc 938 First Tipton Bancorporation 356 First Guthrie Corp 609 First Union Bancorporation 357,434 First Gwinnett Bancshares, Inc 997 First University Corporation 434 First Hugo Capital Corporation 356 First Villa Grove Bancorp, Inc 865 First International Bancshares, Inc 528, 678, 857 First Virginia Banks, Inc 259 First Jersey National Corporation 995 First Woodstock Corporation 357 First Kenesaw Company 867 Flagship Banks, Inc 779 First Keyes Bancshares, Inc 938 Florence Bancorporation, Inc 679 First Kiowa Bancshares, Inc 82 Florida Bancorporation, Inc 811 First Lake County Corporation 417 Florida National Banks of Florida, Inc 346 First McHenry Corporation 526 Florida Park Banks, Inc 811 First Maryland Bancorp 358 Floyd County Bancshares, Inc 679 First Mexia Bancshares, Inc 609 Forestwood Financial Corporation 260 First Mineola Corporation 811 Fountain Bancorporation, Ltd 937 First Minnetonka Bancorporation, Inc 678 Frazee Bancorporation, Inc 609 First Mississippi National Corporation 814 Freeport Bancshares, Inc 998 First Mustang Corporation 811 Fremont BancShares, Inc 679 First Naperville Bancorporation, Inc 174 Fremont State BancShares, Inc 679 First National Agency, Inc 814 G & R, Inc 358 First National Bancorp, Inc 811 GAB Company 260 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 66 A89 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. GATX Corporation 862 Hubbard Bancshares, Inc 357 GEM Agency, Inc. 814 Hugoton Bancshares, Inc 261 Garden City Bancshares, Inc 434 Hunter Holding Company 938 Garrett Bancshares Ltd 998 Ida Holding Company 260 General Bancorporation, Inc 83 Illinois Holding Company 174 Geneva Capital Corporation 865 Illinois State Bancorp, Inc 526 Georgia Bancshares, Inc 260 Independent Bankshares, Inc 609 Girard Company 681 Indiana Bancorp, Inc 260 Glenwood Bancorporation 526 Indiana National Corporation 358, 359, 528, 986 Glidden First National Holding Co 260 Iola Bancshares, Inc 609 Gov Financial Holdings Limited, Naftali Financial Iowa Bancorporation 868 Holdings Limited, Israel Financial Holdings Iowa Park Bancshares, Inc 357 Limited, Israel Investment and Finance Corpora- Iroquois Bancorp, Inc 865 tion Limited, IDB Bankholding Corporation Isensee Corporation 527 Limited, and Israel Discount Bank Limited, Tel ISLAND CITY BANCORP, Inc 527 Aviv, Israel 910 J.J. Flynn Investment Co. Inc 83 Graham-Michaelis Financial Corporation 998 J. R. Montgomery Bancorporation 260 Grandville Financial Holdings Limited, Hong Jacksboro National Bancshares, Inc 434 Kong, B.C.C. etal 81 Jan-Mar Corp 262 Great American Corporation 430 Jasper Bancshares, Inc 812 Great Lakes Financial Corporation 679 Jasper Investment Co., Inc 865 Great Southern Bancshares, Inc 357 Jefferson Bancorp., Inc 527 GREATER MILWAUKEE FINANCIAL CORP. . 609 Jefferson Bancshares, Inc 527,610 Green Country Bancorporation, Inc 526 Jenks America, Inc 812 Green River Company 173 Jennings Bank Shares, Inc 357 Griswold State Bancshares 358 Johnson State Bancshares, Inc 357 Guarantee Bancorp, Inc 938 Jorgenson Insurance Agency, Inc 867 Guaranty Bancshares, Inc 865 K. B. J. Enterprises, Inc 527 Guaranty Development Company 165 KGB Bancorporation, Inc 260 Guardian Bancshares, Inc 865 KNB Bancshares, Inc 812 Gwinnett Holding Company 938 Kanawha Investment Co 867 H & H Financial Corporation 865 Kandi Bancshares, Inc 865 HAMBAC, Inc 938 Kandiyohi Bancshares, Inc 812 Hamilton Bancgroup & Co 938 Kansas Bancorporation, Inc 359 Hardwick Holding Company 998 Kearney Commercial Bank 261 Harper Associates Bancshares Ltd 609 Kelwood Farms, Inc 802 Harris County Bankshares, Inc 998 KENNEDY BANCSHARES, INC 998 Hawkeye Bancorporation 357,609,814 Key Banks, Inc 679, 781 Hector Securities and Investment Company 814 Keystone Investment, Inc 681 Henning B anc share s Inc 526 Kiester Investments, Inc 435 Hereford Investment Co 528 Kinban, Inc 611 Heritage Bancorporation 609 Kiowa Bancorporation, Inc 938 Heritage Banks, Inc 590, 917 Kit Carson Insurance Agency, Inc 681 Heritage Racine Corporation 419 Knoff Bancshares, Inc 677 Hi-Bancorp, Inc 260 Knott Holding Company, Inc 527 Hibernia Bancshares Corporation 526 L. E. S.,Incorporated 431 Highland Bancshares, Inc 434 LNB Bancshares, Inc 679 Highland Park Bancshares, Inc 261 La Grange Park Banc Corporation 812 Hoffman Bancorp, Inc 260 Lake Benton Bancorporation, Inc 679 Hoffman Bancshares, Inc 83 Lake Jackson Bancshares, Inc 246 Hollis Bancshares, Inc 812 Lakota Bank Holding Company, Inc 174 Holt County Investment Company 865 Lanark Bancshares, Inc 527 Home State Bancorporation, Inc 998 Landmark Bancshares Corporation 527 Hometown Finance Company 1000 Lanesboro Agency, Inc 940 HOPE BANK HOLDING COMPANY 526 Laredo National Bancshares, Inc 865 Hopkins Financial Corporation 998 Las Vegas Bancorporation 812 Horizon Bancorp 260 Laurens Bancorp, Ltd 260 Horton Bancshares, Inc 609 Lee Wilson & Co 933 Houston American Financial Corporation 938 Leigh Corporation 174 Houston Investments, Inc 681 LeRoy Bancshares, Inc 527 Houston United Bancshares, Inc 865 LeRoy C. Darby, Inc 867, 1000 How-Win Development Co 868 Le Sueur Bancorporation, Inc 679 Howells Bank 260 Liberty BanCorporation 865 Howland Bancshares, Inc 858 Liberty Bancshares, Inc 998 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A90 Federal Reserve Bulletin • December 1980 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Liberty National Bancorp, Inc 610 Mustang Financial Corporation 527 Liberty National Corporation 262,797 NBA Bankshares 812 Lincoln East BancShares, Inc 679 NCNB Corporation, First and Merchants Corpora- Lincoln S. B. Corp 865 tion, and First Atlanta Corporation 170 Lindsay State Company 258 Nasher Financial Corporation 610 Lloyds Bank Limited, London, England; and Royal National Bancshares, Inc 812, 938 Bank of Scotland Group Limited and Royal Bank National Bancshares Corporation of Texas 658 of Scotland Limited, Edinburgh, Scotland 518 National Commerce Corporation 680 Lone Oak Financial Corporation 679 National Detroit Corporation 579 Long Island Trust Company 814 National Western Bancorporation 434, 812 Longview Capital Corporation 679 Navigation Bancshares, Inc 260 Louisburg Bancshares, Inc 175 Nebanco, Inc 528 M. B. Group, Inc 998 Nekoosa Port Edwards Bancorporation 174 M. W. Reed Banco 357 Nevada Bancshares, Inc 527 MPS Investment Company 262 New England Merchants Company, Inc 425 MPSBancorp, Inc 357 New Richmond Bancorporation 357 MSB Holding Company 812 Newco Corporation 527 McClain County Bancorporation, Inc 865 Newton Bancshares, Inc 812 McGregor Bancshares, Inc 174 Niobrara Investment Co 868 Madison Agency, Inc 814 Nobles Agency, Inc 529 Madison Holding Co 357 Nolte Bancshares, Inc 866 Mahaska Investment Company 999 NORLO INC 866 Mainland Bancorporation, Inc 434 North Branch Investment, Inc 610 Manco, Inc 174 North Central Banco, Inc 681,814 Mansura Bancshares, Inc 174 North Community Bancorp, Inc 680 Manufacturers Bancorp, Inc 434 North Platte Corporation 782 Manufacturers Bancshares, Inc 679 Northern Bankshares, Inc 866 Manufacturers Hanover Corporation 528,599 Northern Kentucky Bancshares, Inc 812 Manufacturers National Corporation 435, 524 Northern National Bancshares, Inc 258 Marbanco, Inc 527 NorthPark National Corporation 610 Marine Bancorp, Inc 610 Northstar Bancorporation, Inc 681, 998 Marine Corporation 166,347,814,912 Northwest Bancshares, Inc 936 Mark Twain Bancshares, Inc 812,866 Northwest Indiana Bancshares, Inc 357 Marquette National Company 527 Northwestern Bank Corporation 938 Marsh Investments, N.V., et al., Curacao, Nether- Northwestern Financial Corporation 427 lands Antilles 938 Northwood Financial Services Corporation 938 Marshall & Ilsley Corporation 258, 978 Norwood Bancshares, Inc 998 Marshall-Putnam County Bancorporation, Inc. ... 83 Oak Park Bancorp., Inc 357 Maryland National Corporation 251,681 Oakland Financial, I nc 867 Matador Bancshares, Inc 998 Oakley Holding Company 260 Meader Insurance Agency, Inc 681 Oakwood Bancorp, Inc 938 Mellon National Corporation 433,940 Ogden Newspapers, Inc 866 Mercantile Bancorporation, Inc 799 O'Hare Banc Corp 260 Mercantile Bankshares Corporation 258, 524 Ohio Citizens Bancorp, Inc 680 Mercantile Texas Corporation 423 Oilton Bancshares, Inc 938 Michigan National Corporation 247 Oketo Banc Shares, Inc 998 Mid America Bancshares, Inc 866 Oklahoma State Bancshares, Inc 358 Mid Iowa, Inc 611 Old Canal Bankshares II, Inc 607 MidAmerica Bancshares, Inc 814 Old Colony Co-operative Bank 665 Midlantic Banks Inc 175 Old Stone Corporation 681,814 Mills County Bancorp 610 Omego City Holding Co 358 Mil Wise Bancorp, Inc 866 Orange Bancshares, Inc 939 Minnesota Banc Holding Co 357 Orbanco, Inc 358,527,666 Moline Financial Corporation 999 Osakis Bancshares 83 Monroe Agency, Inc 814 Owenton Bancorp, Inc 998 Monticello Bancshares, Inc 260 P & C Bank Shares, Inc 998 Morton Bancshares, Inc 610 P and D Company of Stewartville, Inc 940 Mountain Banks, Ltd 679,812 PBC Holding Corp 866 Mountain Financial Company 527 Pan American Bancshares, Inc 262,605 Mountain Holding Inc 812 Parkers Prairie Bancshares, Inc 866 Mt. Pleasant Company 812 Patriot Bancorporation 680 Mt. Sterling Bancshares, Inc 812 Pawnee Bancshares, Inc 999 Multi-Line, Inc 349 Peachtree Bancshares, Inc 866 Munter Agency, Inc 940 Peoples Bancorp Inc 610 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 66 A91 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Act—Continued Orders issued—Cont. Orders issued—Cont. Peoples Bancshares, Inc 174 Shelby ville Bancshares, Inc 866 Peoples Bancshares of Belleville, Inc 866 Sheldon Security Bancorporation, Inc 260 Peoples Bancshares of Caddo, Inc 998 Sierra Petroleum Co., Inc 999 Peoples Equity Corporation 260 Silverton Bancshares, Inc 939 Peoples Equity Shares, Inc 999 Slater Bancshares, Inc 610 Persons Banking Co., Inc 812 Society Corporation 351 Philadelphia National Corporation 435 South Carolina National Corporation 359,435 Philip Bancorporation, Inc 939 South Holland Bancorp., Inc 812 Pikeville National Corporation 939 South Ridge Bancshares, Inc 812 Pioneer Industrial Park, Inc 523 Southeast Bancshares, Inc 939 Portales National Bancshares, Inc 680 Southeast Banking Corporation 525 Portland Financial Services, Inc 939 Southern Bancorporation, Inc 435 Progressive Bancshares Corporation 680 Southern Banks of Florida, Inc 610 Provident Bancorp., Inc 866 Southwest Bancshares, Inc 81, 525,936 R & B Management Corp 867 Southwest State Corporation 680 RKB, Inc 998 Southwestern Bancorp, Inc 939 Rainier Bancorporation 940 Southwestern Investment Co 868 Ranger Financial Corporation 83 Sperry and Hutchinson Company 933 Ray County Bancshares, Inc 527 Spring Grove Investments, Inc 814 Raymondville Bancorp, Inc 680 Springtown Bancshares, Inc 866 Republic of Texas Corporation . 350,580,610,681,787 Springville Bancshares Corp 939 Republicshares, Inc 866 Stamford Banco, Inc 681 Rexford Investment Co., Inc 529 Stapleton Bancorporation, Ltd 677 River Valley Bancshares, Incorporated 261 Starke County Bancorp, Inc 527 Riverton State Bank Holding Company 939 State Bancshares, Inc 999 Roberts Bancorporation, Inc 680 Stearns Agency, Inc 867 Robinson Bank Holding Company 610 Stephen Adams & Co., Inc 868 Roger Billings, Inc 610,681 Sterling Bankshares, Inc 813 Root River Agency, Inc 868 Stockmen's Management Co 866 Rose Hill Bancorp., Inc 866 Stockton Bancshares, Inc 610 Roswell Bancshares, 998 Straz Investment Co., Inc 358 Royal Bancshares, Inc 939 Streator Bancorp., Inc 527 Royal Bank of Canada, Montreal, Canada 582 Streeter Insurance Agency, Inc 814 Roy all Financial Corporation 175 Subpal Bancorp, Inc 260 RUTHVEN INVESTMENT, LTD 998 Sullivan County Bancshares, Inc 260 S & H HOLDINGS, INC 999 Suwannee County Bancorporation 434 S and S Holding Company 258 Swanton Agency, Inc 867 SBC, Incorporated 939 T E A, Incorporated 608 SBT Corporation 355,680 TBC, Incorporated 358 Sabrina Properties, N.V. Curacao, Netherlands TGBCorp 999 Antilles 81 Talmage Investment Company 527 Salida Corporation 358 Tecumseh Bankshares, Inc 813 San Antonio Bancshares, Inc 174 Tecumseh F&M Bancorp, Inc 610 San Benito Bancshares, Inc 939 Tennessee Homestead Company 939 Sapp Insurance Agency, Inc 252 Tennessee National Bancshares, Inc 603 Schnitzler Corporation 79 Texas Commerce Bancshares, Inc 584 Schreiner Bancshares, Inc 866 Texas Security Bancshares, Inc 83 Schroders Limited, London, England 252 Tigerton Bancorporation, Inc 866 Seafirst Corporation 70 Toledo Trustcorp 813 Seagraves Bancshares, Inc 527 Toledo Trustcorp, Inc 426, 813 Seaway Bancshares, Inc 173 Tolono Bancshares, Inc 610 Second Security Corporation 528 Toronto Bancorporation, Inc 434 Second Western Corporation 434 Toronto Financial Corporation 999 Security Bancorp, Inc 83, 939, 940, 977 Town & Country Bancorporation, Inc 260 Security Financial Services, Inc 175,939 Tradewater Bancshares, Inc 866 Security State Agency of Aitkin, Inc 680 Trans-Western Corp 80 Security State Bancshares of Bemidji, Inc 680 Treasure Valley B ancorp, Inc 260 Security State Bank Holding Company 939 Tri-County State Agency, Inc 611 Security State Bank Shares 812 Troy Bancgroup & Co 358 Security State Holding Company of Fort Scott, Inc. 999 Trust Company of Georgia 174,434,867 Semo Bancshares, Corporation 509 Tsvaiter Financial Corporation 433 Shawnee Mission Bancshares, Inc 999 Tulsa Bancshares, Inc 261 SHELARD BANCSHARES, INC 866 Union of Arkansas Corporation 659 Shelby County Bancshares, Inc 939 U.S. Bancorp and Old National Bancorporation . . 175, 987 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A92 Federal Reserve Bulletin • December 1980 Pages Pages Bank Holding Company Act—Continued Bank Holding Company Tax Act of 1976—Continued Orders issued—Cont. Certifications issued under—Cont. United Bank Corporation of New York 61, 174 First Pyramid Life Insurance Company 72,606 United Citizens Bancshares, Inc 867 GATX Corporation 861 United Kansas Bancshares, Inc 813 Hastings Realty Company 990 United Missouri Bancshares, Inc 939 Heights Finance Corporation 253 United Ohio Bancs, Inc 610 Homewood Corporation 923 United Rock Construction, Inc 674 How-Win Development Co 73 United Whitley Corporation 813 Industrial National Corporation 991 Valley Bancorporation 681 Keystone Consolidated Industries, Inc 73,520 Valley Bancorporation, Inc 434 Kupka's, Inc 806 Valley State Investments, Inc 940 Lake Hamilton Enterprises, Inc 924 Van Bancshares, Inc 680 Lee Wilson & Co 806,925 Van Buren Bancorporation 261 National Insurance Agency, Inc 926 Van Dyke Bank Holding Corp 528 Noble Insurance Agency 992 Verdigre Agency, Inc 814 Oliver Jensen Agency, Inc 927 Verndale Bancshares, Inc 83 Paul M. Gillmor Company 521 Vidor Bancshares, Inc 813 Peoples Insurance Agency, Inc 927 Vienna Bancorp, Inc 261 Pioneer Industrial Park, Inc 74, 522 Virginia National Bankshares, Inc 429,668,677 Powell Lumber Company 431,523 Walker Bancshares Corp 175 Safeway Insurance Company 75 Walsh Bancorporation, Inc 1000 Sapp Insurance Agency 254 Wamego Bancshares, Inc 867 Schnitzler Corporation 76 Warner Communications Inc 934 Seilon, Inc 928 Waubun Bancshares, Inc 999 Southeastern Capital Corporation 993 Waupaca Bancorporation 354 Sperry and Hutchinson Company 929 Wausa Bancshares, Inc 681 Strachan Construction Company, Inc 930 Waytru Bancorp 610 Trans-Western Corp 77 Welch Bancshares, Inc 789 Vernon Financial Corporation 78, 931 Weleetka Bancorporation, Inc 999 Warner Communications, Inc 675 Wells Fargo & Company 529 Bank Merger Act Wellsville Bancshares, Inc 358 Applications under, protested, policy statement.... 962 West Side Bancshares, Inc 528 Assessment of competitive factors in proposed merg- Western Bancorporation 173 ers, adoption of standard terms by bank regulatory Western Bancshares, Inc 681 agencies 562 Western Development, Inc 999 Orders issued under Western Michigan Corporation 261 AmeriTrust Company, Cleveland, Ohio 238,941 Westex Bancorp, Inc 680 Bank of New York, New York, N.Y 807 Whitefish Holding Company, Inc 939 Bank of Virginia, Richmond, Va 869 Whitley Financial Corp 434 Barclays Bank of New York, New York, N.Y. ... 262 Wichita Bancshares, Inc 528 Central Trust Company, Reynoldsburg, Ohio . 608,940 Wilcox Bancshares, Inc 528 Connecticut Bank and Trust Company, Hartford, Wilshire Bancorporation 813 Conn 869 Wilson Bancshares, Inc 610 Dime Bank of Northwest Ohio, Continental, Ohio . 611 Windom State Investment Company 610 First Virginia Bank-South Central, Brookneal, Va. . 1000 Winslow Bancorporation, Inc 528 Hillsdale State Savings Bank, Hillsdale, Mich. ... 359 Wishek Bancorporation, Inc 813 Manufacturers Hanover Trust Company, New Wolfe City Bancshares, Inc 175 York, N.Y 815 Wood Lake Corporation 611 Midwest Bank and Trust Company, Cleveland, Woodfield Bancorp, Inc 261 Ohio 83 WORTH BANCORP., INC 608 Security Savings Bank, Marshalltown, Iowa 941 Wyandotte Bank Corporation 939 Springfield Marine Bank, Springfield, 111 611 Wyoming Bancorporation 791 Bank Secrecy Act, statements 475, 959 Yellowstone Holding Company 250 Bank supervision and regulation (federal agencies) Yorkville Bancshares, Inc 610 Bank holding companies and commercial banks, policy Zavala Bankshares, Incorporated 999 statement for bank supervisors 35 Bank Holding Company Tax Act of 1976 Bank Secrecy Act, statements 475, 959 Certifications issued under Civil money penalties, policy for assessment 652 Aladdin, Inc 920 Condition reports, adoption for use by U.S. branches American Financial Corporation 803, 989 and agencies of foreign and Puerto Rican banks ... 36 Atlantic Corporation 804 Contract activities of banks, revised guidelines .... 321 Atwood Vacuum Machine Company 921 Depository Institutions Deregulation Committee (See Brantley Company 71 Depository Institutions Deregulation Committee) Ector Shopping Center, Inc 860 Depository Institutions Management Interlocks Act. . 395 Evans Insurance Agency, Inc 72 Disclosure of enforcement actions against financial First Capital Corporation 922 institutions 37, 966 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 66 A93 Pages Pages Bank supervision and regulation —Continued Branch banks—Continued Examination policy for classification of delinquent Member banks consumer installment loans held by state member Foreign branches banks 228 Assets and liabilities 831 Standard terms and guidelines, adoption 562 Reserve requirements, amendments to Regulation Banking, interstate, article on competitive effects .... 1 D and correction 333,492,571 Banks, U.S., staff study on foreign ownership and per- State, policy statement on applications for 962 formance 543 Brannies, George, appointed director, San Antonio Bethea, Martha, appointed Assistant Director, Division Branch 279 of Research and Statistics 397 Brundy, James M., resignation as Deputy Associate Di- Birckhead, Oliver W., appointed director, Cincinnati rector, Division of Research and Statistics 483 Branch 269 Budget (See also Debt) Board of Governors (See also Federal Reserve System) Federal, statement on setting priorities 739 Bank holding companies, actions concerning (See Federal Reserve System, statement on performance Bank holding companies) for 1979 and outlook for 1980 132 Charges for services to financial institutions, proposals 746 Canner, Glenn, article 87 Consumer Advisory Council 151,324, Capacity utilization rates, revision 746 481, 562, 833, A76 Cash Discount Act, statement 384 Enforcement documents, availability 966 Chapman, James A., Jr., elected Class B director, Rich- Interpretations (See Interpretations) mond 270 Litigation (See Litigation) Check clearing and collection (See Transfers of funds) Members Cleaver, Joe M., article 87 Coldwell, Philip E., resignation 227 Coldwell, Philip E. Gramley, Lyle E., appointment 478 Federal Reserve System's budget performance for Lists, 1913-80 264,490 1979 and outlook for 1980, statement 132 Members and officers A74 Resignation as Member, Board of Governors 227 Publications (See Publications and releases) Commercial banks (See also Member banks) Regulations (See Regulations) Foreign banks (See Foreign banks) Rules (See Rules) Insured, article on profitability in 1979 691 Staff changes Policy statements for bank supervisors affecting .... 35 Bethea, Martha 397 Commodity Futures Trading Commission and Federal Brundy, James M 483 Reserve, statement on coordination between 211 Eisenbeis, Robert A 38 Community Reinvestment Act, information statement Frazier, Robert E 562 and progress report 30, 87 Garwood, Griffith L 833 Condition reports, uniform, adoption for foreign and Geary, Anne 38 Puerto Rican banks 36 Guenther, Kenneth A 38 Conference of First Vice Presidents 151 Homer, Laura M 882 Consumer Advisory Council 151,324, Livingston, George E 38 481, 562, 833, A76 Loney, Glenn E 652 Consumer Usury Study Commission Act 641 Lowrey, Barbara R 322 Cook, Stanton R., appointed Class C director and Depu- McAfee, James 966 ty Chairman, Chicago 273 Petryshyn, Cathy L 323,833 Cook, W. W. Jr., appointed director, Omaha Branch . . 278 Plows, Robert C 152,652 Corporate financing patterns, recent, article 683 Prell, Michael J 38 Corrado, Carol, article 613 Puckett, Richard H 562 Covell, Edward H., appointed director, Baltimore Robinson, David L 562 Branch 270 Smith, Dolores S 652 Credit (See also Loans) Smith, John D 38 Brokers and dealers (See Regulations: T) Walker, Jefferson A 833 Federally assisted programs, statement on measures Winn, Donald J 966 to improve control over 547 Staff studies (See Staff studies) Households, article on recent financial behavior .... 437 Statements and reports to Congress (See Statements Needs of inner-city minority communities, statement 471 to Congress) Restraint (See Credit restraint program) Tours of Board Building, addition of slide show to Scoring systems, article on selection and disclosure of and expansion of hours 152, 746 reasons for adverse action 727 Trust institutions, Seasonal program, temporary 393 proposed policy statement 882 Stocks (See Stock market) Bowen, William H., appointed director, Little Rock Transactions of state member banks, proposed policy Branch 275 statement 37 Branch banks Credit restraint program Federal Reserve Announcement 314-18 Directors (See Directors) Modification and phaseout 479, 559, 651 Vice Presidents in charge, list A77 Regulations 333-42,393,412-14,493-95,572,653 Foreign (See Foreign banks) Statement 309 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A94 Federal Reserve Bulletin • December 1980 Pages Pages Crum, Lawrence L., appointed director, San Antonio Eurocurrency liabilities, amendments to Branch 279 Regulation D 743, 758, 881, 889, 965, 974 Currency Examinations (See Bank supervision and regulation) Bank Secrecy Act, statements 475, 959 Export trading companies, statements 311,642 Examination, adoption of high-speed program 966 Faber, Eberhard, elected Class B director, Philadelphia 268 Debt, public, statement on proposed increase in limit . . 307 Fair Credit Practices Act, statement 384 Delaney, Patrick A., appointed director, New Orleans Fair Housing Act, statement on enforcement activities . 20 Branch 273 Federal Advisory Council A76 Depository Institutions Deregulation and Monetary Federal Financial Institutions Examination Control Act of 1980 Council 36,37,228,562,652,830-31 Article 444 Federal funds, change in data 321 Implementation Federal Open Market Committee Discount window operation, publications 832 Foreign exchange operations, reports . 190, 454, 707, 953 "Ineligible paper" as collateral, revision 745 Members and officers, list A76 Regulations 394,483,743,744,755 Policy actions, record 39,231,325,399, Schedule 650 484, 565, 747, 835, 968 Seasonal credit program, temporary 393 Federal Reserve Act, order under section 9 approving Statement 319 establishment of branch bank 601, 776 Depository Institutions Deregulation Federal Reserve and Treasury foreign exchange opera- Committee 396, 481, 495-504, 573, 644, 904 tions, reports 190,454,707,953 Depository Institutions Management Interlocks Act. 395,414 Federal Reserve Banks Deposits Branches (See Branch banks) Interest rates (See Interest on deposits) Chairmen and Deputy Chairmen 266, All Negotiable order of withdrawal accounts . . 757, 850, 882 Conference of First Vice Presidents 151 Reserve requirements (See Regulations: D, Reserve Credit extended by (See Regulations: A) Requirements of Depository Institutions; and D, Delegation by Board of certain authority to, amend- Reserves of Member Banks) ment to rules 414 Dickson, William M., elected Class A director, Rich- Directors (See Directors) mond 269 Discount rates (See Interest rates) Directors Earnings and expenses in 1979 32 Federal Reserve Banks Philadelphia, release of film 746 Chairmen and Federal Reserve Agents 266, A77 Presidents and Vice Presidents, list All Deputy Chairmen 266, All Transfers of funds (See Transfers of funds) List 266 Federal Reserve Board (See Board of Governors) Federal Reserve branch banks "Federal Reserve Glossary" 37 Chairmen and Deputy Chairmen 266, All Federal Reserve Modernization Act, proposed, state- List 266 ment 459 Discount rates at Federal Reserve Banks (See Interest Federal Reserve System (See also Board of Governors) rates) Bank supervision and regulation, federal agencies Discount window lending, description of procedures . . 832 (See Bank supervision and regulation) Dividends in 1979 Budget performance for 1979 and outlook for 1980 . . 132 Federal Reserve Banks 32 Currency examination, adoption of high-speed pro- Insured commercial banks, article 691 gram 966 Drury, Doris M., appointed Class C director, Kansas Foreign exchange operations of Treasury and Federal City 277 Reserve, reports 190,454,707,953 Legislation (See Legislation) Earnings and expenses in 1979 Map of districts and their branch territories A100 Federal Reserve Banks 32 Membership Insured commercial banks, article 691 Admissions of state banks 38 Economy, statements 137,376 152, 230, 324, 397, 483, 563, 652, 746, 834, 882, 967 Edge Act and Agreement corporations Policy statement 967 Banking data, availability 563 Transfers of funds (See Transfers of funds) Condition report, uniform, adoption 36 Financial developments, domestic, quarterly reports to Eurocurrency liabilities, calculation, amendments to Congress 115,361,627,871 Regulation D 743, 758, 881, 889, 965,974 Financial Institutions Regulatory and Interest Rate Con- International banking operations (See Regulations: K) trol Act of 1978 652 Managed liabilities, amendment to Regulation D ... 653 Financial system, statement on condition 465 Eisenbeis, Robert A. Flow of funds accounts, publications 37, 966 Appointed Senior Deputy Associate Director, Divi- Foreign bank holding companies, statement on nonsion of Research and Statistics 38 banking activities 550 Article 727 Foreign banking and financing (See Regulations: K) Electronic fund transfers (See Transfers of funds) Foreign banks Equal Credit Opportunity Act Condition reports, uniform, adoption 36 Enforcement activities, statement 20 Eurocurrency liabilities, amendments to Regulation B (See Regulations) Regulation D 743, 758, 881, 889,965,974 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 66 A95 Pages Pages Foreign banks—Continued Interest rates (See also Interest on deposits) Interstate banking activities, amendments to and in- Consumer credit, statement on bill to preempt state terpretation of Regulation K 829,899,902 limits on rates but to permit state to enact over- Investments, additional, amendment to riding legislation 827 Regulation K 963, 974 Federal Reserve Banks Marginal reserve requirements, amendments to Regu- Changes 227,314-18,478,560,651,829,962 lation D and correction 333, 492, 571, 653 "Ineligible paper" as collateral, revision 745 Nonbanking activities, amendments to Regulation K . 963 Surcharge removal 393 Reserve requirements and interest rate ceilings on Monetary policy (See Monetary policy) certain foreign banks, amendments to Regulations Rebates of unearned finance charges, statement on A, D, K, and Q 318,342 computing 10 Reserve requirements, depository institutions, appli- Interlocking bank relationships 395, 407-11, 414 cability of new Regulation D 743, 758 International banking (See Foreign banks) Foreign branches of member banks (See Branch banks) International Banking Act of 1978 318, 342, 829, 899 Foreign exchange operations of Treasury and Federal International conference on banking and payments sys- Reserve, reports 190,454,707,953 tems 230 Foreign lending by large U.S. banks, surveys . . 33, 560, 963 International data, corrections to tables 832 Foreign ownership, U.S. banks, staff study 543 International Development Association of World Bank, Frazier, Robert E., appointed Assistant Director for statement on U.S. participation in replenishment . . . 374 Building Services, Division of Support Services .... 562 International financial conditions, statement 12 Furth, Alan C., appointed Class C director, San Fran- International Monetary Fund, statements on increasing cisco 280 U.S. quota 299,302 International transactions of United States in 1979, ar- Garwood, Griffith L., appointed Deputy Director, Divi- ticle 283 sion of Consumer and Community Affairs 833 Interpretations, Board of Governors Gates, Charles C., elected Class B director, Kansas City 277 Bank holding companies . 237,573,652,654,774,882,903 Geary, Anne, resignation as Assistant Director, Divi- Bankers'banks 881,901 sion of Consumer and Community Affairs 38 Equal Credit Opportunity, proposed interpretations . 746 Gilliam, John P., elected Class A director, Dallas .... 278 Reserves of member banks 394,414-16 Goldsmith, Bram, appointed director, Los Angeles Stock option plans, permission to grant credit for in- Branch 280 come taxes 573 Gramley, Lyle E. Truth in Lending, disclosures required for renego- Appointed Member, Board of Governors 478 tiable-rate mortgages 830 Bank Holding Company Act, statement on proposed Investments amendment 957 Additional, in international banking operations . . 963,974 Credit programs, federally assisted, statement on Bank, in export trading companies, statement 311 measures to improve control over 547 Grospiron, Alvin F., appointed director, Denver Branch 277 Jacobson, Laurence R., article 283 Guenther, Kenneth A., resignation as Assistant to Jensen, Harry A., elected Class B director, Philadelphia 268 Board 38 Johnson, Ronald A., article 817 Jones, C. Gordon, appointed director, Birmingham Hiltz, Sister Grace Marie, appointed director, Cincin- Branch 271 nati Branch 269 Holt, Mary P., elected Class B director, St. Louis .... 274 Kane, Charles J., appointed director, Nashville Branch 272 Home Mortgage Disclosure Act, statements 217, 379 Kaplan, Robert S., appointed director, Pittsburgh Homer, Laura M., appointed Securities Credit Officer, Branch 269 Division of Banking Supervision and Regulation .... 882 Keir, Peter M., statement on coordination between Hopper, Drucilla R., article 123 Commodity Futures Trading commission and Federal Hosley, Joan D., article 123 Reserve 211 Houpt, James V., staff study 543 Kessler, John W., elected Class B director, Cleveland . 268 Households, article on recent financial behavior 437 King, John R., appointed director, Nashville Branch . . 272 Housing (See Real estate) Kirby, Joe F., elected Class B director, Minneapolis .. 276 Hunt, Donald L., elected Class A director, St. Louis . . 274 Hurtt, Caleb B., appointed director, Denver Branch . . 277 Legislation (See also Statements to Congress) Bank Holding Company Act (See Bank Holding Com- Income and expenses (See Earnings and expenses) pany Act) Industrial production, releases 9,129, 209,297, Community Reinvestment Act (See Community Rein- 369, 458, 545, 635, 737, 825, 879, 956 vestment Act) Industrial production index, revision 746 Depository Institutions Deregulation and Monetary Insured commercial banks, article 691 Control Act of 1980 (See Depository Institutions Interest on deposits (See also Interest rates) Deregulation and Monetary Control Act of 1980) Authority to prescribe rates transferred to Depository Depository Institutions Management Interlocks Institutions Deregulation Committee, rules adopted Act 395, 414 and amendments 481,495-504,573-74,904 Electronic Fund Transfers Act, article 290 Changes (See Regulations: Q) Equal Credit Opportunity Act (See Equal Credit Op- Rate ceilings, statement on proposals 221 portunity Act) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A96 Federal Reserve Bulletin • December 1980 Pages Pages Legislation—Continued Monetary aggregates (See also Money, Money stock) Federal Reserve Act (See Federal Reserve Act) Redefined, article 97 Financial Institutions Regulatory and Interest Rate Redefinition, statement 371 Control Act of 1978 652 Monetary Control Act of 1980 (See Depository Institu- Home Mortgage Disclosure Act 217, 379 tions Deregulation and Monetary Control Act of 1980) International Banking Act 829,899 Monetary policy Monetary Control Act (See Depository Institutions Credit restraint (See Credit restraint program) Deregulation and Monetary Control Act of 1980) Money, new definitions to be used in conducting . . . 149 Truth in Lending (See Truth in Lending Act) Reports to Congress 177,531 Litigation, cases pending involving Board of Governors . . 84, Statements to Congress .... 137,143, 213, 636,640, 943 176, 263, 359, 435, 529, 611, 682, 815, 869, 941, 1000 Monetary target ranges for 1981, letter to Congress . . . 649 Livingston, George E., appointed Assistant Controller . 38 Money Loans (See also Credit) Bank Secrecy Act, statements 475, 959 Bank lending to developing countries, statement ... 302 Definitions, new 149 Corporate financing patterns, article 683 Money market mutual funds, statements and special de- Delinquent consumer installment loans held by state posit requirements 130, 314, 317, 335,651,653 member banks, examination policy for classifica- Money stock seasonal factors, new 323 tion 228 Mortgages (See Real estate) Foreign lending by large U.S. banks, surveys . . 33, 560, 963 Motor vehicles, article on production in 1979 123 Member banks (See Member banks) Mutual funds Mortgages (See Real estate) Money market, statements .. 130,314,317,335,651,653 Stocks (See Stock market) Shares, lending on, amendment to Regulation T . 652, 774 Loney, Glenn E., appointed Assistant Director, Division of Consumer and Community Affairs 652 Naramore, Kenneth C., appointed director, Denver Lowrey, Barbara R., appointed Assistant Secretary of Branch 277 Board 322 Negotiable order of withdrawal (NOW) accounts .... 757, Luckett, Charles, article 437 830, 882 Ness, Henry N., elected Class A director, Minneapolis . 276 McAfee, James, appointed Assistant Secretary, Office Newlon, Harry W., appointed director, Helena Branch . . 276 of Secretary 966 Nonmember banks McAlpin-Grant, Iola M., appointed director, Los Ange- Deposits, special, and new reserve requirements, les Branch 280 amendments to Regulation D 314, McBride, Lloyd M., appointed Class C director, Cleve- 335, 650, 653, 881, 889 land 268 Legislation, major changes affecting (See Depository McDonough, William N., return to Federal Reserve Institutions Deregulation and Monetary Control Bank of Boston 323 Act of 1980) Mclnnis, Martha A., appointed director, Birmingham Branch 271 Oil, articles on price increases 283, 817 McKain, William D., appointed director, Pittsburgh Open market operations (See Federal Open Market Branch 269 Committee) McNarny, Patrick E., elected Class A director, Chicago 273 Opper, Barbara Negri, article 691 McNeill, Charles R., article 444 Organization of Petroleum Exporting Countries Mains, Norman E., article 683 (OPEC), statement on recycling surplus 302 Mansell, Thomas V., appointed director, Pittsburgh Over-the-counter margin stock list, revisions .... 324, 833 Branch 269 Margin requirements Palmer, W. M., Jr., appointed director, Jacksonville Authority, proposed, of Board to impose require- Branch 272 ments on broad spectrum of financial instruments, Pardee, Scott E., reports 190,454,707,953 statement 468 Partee, J. Charles Credit by brokers and dealers, technical amendments Bank holding companies, statement on nonbanking to Regulation T 230, 345 activities 555 Over-the-counter stocks, revisions of list 324, 833 Financial reform measures, related topics, and pro- Mawby, Russell G., appointed director, Detroit Branch 274 posals on interest rate ceilings, statement 221 Member banks Financial system, statement on condition 465 Branches (See Branch banks) Housing and the economy, statement 376 Credit extended by Reserve Banks (See Regulations: Monetary aggregates, statement on redefinition .... 371 A) Money market mutual funds, statement 130 Interlocking bank relationships 395,407-11,414 Payments mechanism (See Transfers of funds) Management official interlocks, revision of Regulation Petryshyn, Cathy L., appointed Assistant Secretary of L and amendments to rules 395,407-11,414 Board, and subsequent return to Federal Reserve Reserve requirements (See Regulations: D, Reserves Bank of Cleveland 323,833 of Member Banks) Plows, Robert C., appointed Assistant Director, Divi- Securities (See Securities) sion of Consumer and Community Affairs, and sub- State member banks (See Member banks) sequent resignation 152,652 Transfers of funds (See Transfers of funds) Prell, Michael J., appointed Associated Director, Divi- Mergers (See Bank Merger Act) sion of Research and Statistics 38 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 66 A97 Pages Pages Production Regulations, Board of Governors—Continued Industrial (See Industrial production) D, Reserves of Member Banks Motor vehicles in 1979 123 Foreign banks, amendments 318,342 Publications and releases in 1980 Marginal, on managed liabilities, amendments ... 333, "Alice in Debitland" (electronic fund transfers) .... 483 492, 571, 653 Annual Report for 1979 322 Savings accounts subject to negotiable order of Annual Statistical Digest, 1974-1978 37 withdrawal, certain areas, amendments 757 Banking data from Edge corporations 563 E, Electronic Fund Transfers Capacity utilization rates, revision 746 Amendments . . . 149,153, 394,407, 480, 493, 830, 841 Federal funds and repurchase agreements, change in Rights and safeguards under, article 290 data on release 321 Interpretation, proposed 830 Federal Reserve discount window lending, descrip- F, Securities of Member State Banks tion of procedures 832 Rule changes, proposed simplification, and amend- "Federal Reserve Glossary" 37 ments to conform with Securities and Exchange Flow of funds accounts 37, 966 Commission 37,841-55 Industrial production index, revision 746 G, Securities Credit by Persons Other Than Banks, List of available publications A78 Brokers, or Dealers Over-the-counter margin stock list, revisions . . . 324, 833 Stock option plans, permission to grant credit for Puckett, Richard H., resignation as Assistant Secretary payment of certain taxes, interpretation 573 to Board 562 H, Membership of State Banking Institutions in the Pullen, Gretchen S., appointed director, Omaha Branch 278 Federal Reserve System Uniform standards in making securities transactions, amendments 35,49 Radcliff, Ben M., appointed director, New Orleans J, Collection of Checks and Other Items and Wire Branch 273 Transfers of Funds Real estate Clarification and simplification, revision and pro- Appraisals, amendment to Regulation Y 962, 975 posed new section 37,881,891-99 Home Mortgage Disclosure Act, statements ... 217, 379 K, International Banking Operations Housing and the economy, statement 376 Interstate banking activities of foreign banks in Mortgage loan data reporting, amendment to Regula- United States, amendments and interpretation . . 829, tion C 965 899, 902 Mortgage transactions, amendment to Regulation Z . 651 Investments, additional, amendment 963, 974 Mortgages, renegotiable-rate, interpretation 830 Nonbanking activities, amendments 963 Rebates on unearned finance charges, statement on Reserve requirements of Edge and Agreement computing 10 corporations, amendment to conform 318, 342 Rechter, Denise M., article 444 L, Management Official Interlocks, Regulations, Board of Governors (See also Rules) revisions 395, 407-11 A, Extensions of Credit by Federal Reserve Banks Q, Interest on Deposits Discount and borrowing by certain nonmember de- Bank holding companies, amendments and interpository institutions, major revision to implement pretation 320,334,882,903 Monetary Control Act 744, 745, 755, 832 Bankers' banks, interpretation 901 Foreign banks, amendments to implement Inter- Foreign banks, U.S. branches and agencies, limitanational Banking Act and to grant access to Sys- tions on and access to Federal Reserve services, tem services 342 amendments 318, 342 B, Equal Credit Opportunity Time deposits Applicability to several practices of creditors using Certain deposits, increase in ceiling, and same credit-scoring systems, article 727 rate permissible from all depository institu- Interpretations, proposed 746 tions, amendments 29, 50, 228, 237 Credit Restraint Minimum maturity, amendment 882, 901 Adoption 335-42 New category, creation; temporary ceiling and Amendments and correction . . . 393,412,493,572,653 subsequent limitation, amendments . . 29, 50,228,237 C, Home Mortgage Disclosure T, Credit by Brokers and Dealers Mortgage loan data reporting, amendment 965 Mutual fund shares, amendment 652,773 D, Reserve Requirements of Depository Institutions Specialists and options market-makers, amend- Bankers' banks, interpretation and amendment 881,901 ment 560,571 Change in reporting for smaller institutions and in Technical changes, amendments 230,345 rule for calculation of reserves for banks that Y, Bank Holding Companies merge, amendments 881, 889 Assets acquired in satisfaction of debts, inter- Eurocurrency liabilities, amendment 965, 974 pretation 654 Member banks, former, and those involved in Competitive factor reports, standardized descripmergers, interpretation and amendment . . . 394,414 tive terms, revised interpretation 573 Telephone or preauthorized transfers, permissible Indebtedness signifying continued control, interuse before subject to, amendments 965 pretation 237 Uniform, to certain accounts and deposits of mem- Nonbanking activities, amendment 962,975 ber and nonmember institutions, revision and Operations subsidiary, amendment 483,743,758-73 interpretation 652,774 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A98 Federal Reserve Bulletin • December 1980 Pages Regulations, Board of Governors—Continued Smith, George V., appointed director, Houston Z, Truth in Lending Branch 279 Annual percentage rate on consumer loans and oth- Smith, John D., retirement as Assistant Director, Divier credit terms, amendments and deferral of ef- sion of Support Services 38 fective date for new methods of calculating and Staff studies (summary) disclosing 50,651,653,745 U.S. banks, foreign ownership and performance ... 543 Disclosures on re negotiable-rate mortgages, inter- State member banks pretation 830 Branches, policy statement on applications for 962 Open-end credit plans secured by consumers' resi- Credit transactions, proposed policy statement on dences, delay in revocation of amendment .... 229 sale of life insurance 37 Simplification, proposed revisions, and amendments Delinquent consumer installment loans, examination and proposed amendments 396, 480, 493, 962 policy for classification 228 Repurchase agreements, change in data 321 Membership in Federal Reserve System, admis- Reserve requirements, changes sions 38, 152, 230, 324, 397, 483, 563, 652, 746, Depository institutions (See Regulations: D, Reserve 834, 882, 967 Requirements of Depository Institutions) Mergers (See Bank Merger Act) Member banks (See Regulations: D, Reserves of Policy statement affecting 962 Member Banks) Rules Regarding Delegation of Authority, amendment Revisions affecting 654 Capacity utilization rates 746 Securities (See Securities) Industrial production index 746 Statements to Congress (include reports) Rhoades, Stephen A., article 1 Bank holding companies 550, 555 Rice, Emmett J., statement on Home Mortgage Dis- Bank Holding Company Act, proposed amendclosure Act 379 ments 957 Richardson, Arthur M., appointed director, Buffalo Bank Secrecy Act 475, 959 Branch 267 Cash Discount and Fair Credit Practices Acts 384 Richardson, Dean E., appointed director, Detroit Commodity Futures Trading Commission and Federal Branch 274 Reserve, coordination between 211 Robinson, David L., appointed Assistant Director and Consumer credit, bill to preempt state limits on inter- Chief Federal Reserve Examiner, Division of Federal est rates but to permit state to enact overriding leg- Reserve Bank Operations 562 islation 827 Rogers, Robert D., elected Class B director, Dallas . . . 278 Consumer Usury Study Commission Act 641 Rules (See also Regulations) Credit needs of inner-city minority communities, Delegation of authority, amendments 414 steps to meet 471 Procedure, policy statement 962 Credit programs, federally assisted, measures to im- Rush, David H., appointed director, Miami Branch ... 272 prove control over 547 Ryan, John E., statements on Bank Secrecy Act. . 475, 959 Credit restraint program and impact on small business 309 Sanchez, M. G., appointed director, Miami Branch . . . 272 Debt, public, proposed increase in limit 307 Saving, personal, article 613 Depository Institutions Deregulation Committee . . . 644 Scarborough, J. Banks, appointed director, Charlotte Economy, state of, and advisable course for econom- Branch 270 ic policy 137 Schultz, Frederick H. Equal Credit Opportunity and Fair Housing Acts, en- Consumer credit, statement on bill to preempt state forcement activities 20 limits on interest rates but to permit state to enact Export trading companies 311, 642 overriding legislation 827 Federal budgetary priorities, setting 739 Credit restraint program and impact on small busi- Federal Reserve Modernization Act, proposed .... 459 ness, statement 309 Federal Reserve System's budget performance for Inflation, statement on difficulties for the economy 1979 and outlook for 1980 132 and particularly small business 382 Financial developments, domestic, quarterly reports Loan rates above discount rate, authority of addition- to Congress (1979 Q4-1980Q3) 115,361,627,871 al lender groups to set, and state's right to reimpose Financial reform measures, related topics, and proits ceilings 18 posals on interest rate ceilings on deposits 221 Securities (See specific types) Financial system, condition 465 State member banks Home Mortgage Disclosure Act 217, 379 Regulation F, amendments 37, 841-55 Housing and the economy 376 Regulation H, amendments 35, 49 Inflation, difficulties for the economy and particularly Stocks (See Stock market) small business 382 Shires, Hugh D., appointed director, Baltimore Branch 270 International Development Association of World Silver market, statement 462 Bank, U.S. participation in replenishment 374 Silver market speculation, statement 388 International financial conditions 12 Simpson, Thomas D., article 97 International Monetary Fund, increasing U.S. Smith, Dolores S. quota 299, 302 Article 290 Loan rates above discount rate, authority of addition- Appointed Assistant Director, Division of Consumer al lender groups to set, and state's right to reimand Community Affairs 652 pose its ceilings 18 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 66 A99 Pages Pages Statements to Congress—Continued Transfers of funds—Continued Margin requirements, proposed authority of Board to International conference on banking and payments impose on broad spectrum of financial instruments 468 systems 230 Monetary aggregates, redefinition 371 Negotiable order of withdrawal (NOW) accounts . . . 757, Monetary policy 830, 882 Reports 177,531 Tranum, Dixon A., article 123 Statements 137,143,213,636,640,943 Treasury and Federal Reserve foreign exchange opera- Money market mutual funds 130 tions, reports 190,454,707,953 Privacy legislation, proposed 386 Truth in Lending Act Rebates of unearned finance charges, computing ... 10 Amendment, statement 384 Silver market, impressions and reactions to recent Regulation Z (See Regulations) events 462 Silver market speculation, outline of Chairman's and U.S. government and agency securities, revised guide- Federal Reserve's role in assessing financial reperlines for contract activities of banks involving 321 cussions 388 U.S. international transactions in 1979, article 283 Steindel, Charles, article 613 Usury ceilings, statements 18,827 Stock market Credit by brokers and dealers, amendments to Regu- Volcker, Paul A. lation! 230,345,560,571,652 Debt, public, statement on proposed increase in limit. . 307 Over-the-counter margin stock list, revisions . . . 324, 833 Depository Institutions Deregulation Committee Stock option plans, permission to grant credit for pay- Elected Chairman 396 ment of certain taxes, interpretation 573 Statement 644 Supervision and regulation, federal agencies (See Bank Economy, state of and advisable course for economic supervision and regulation) policy, statement 137 Surveys, foreign lending by large U.S. banks 33, Federal budgetary priorities, statement on setting . . . 739 560, 963 Federal Reserve Modernization Act, proposed, statement 459 Tables (for index to tables published monthly, see guide International Development Association of World at top of p. A85) Bank, statement on U.S. participation in replenish- Federal funds and repurchase agreements, change in ment 374 data 321 Margin requirements, statement on proposed author- International data, corrections 832 ity of Board to impose on broad spectrum of finan- Money stock seasonal factors, new 323 cial instruments 468 Revisions (See Revisions) Monetary policy, statements .... 143, 213, 636, 640, 943 Teeters, Nancy H. Monetary target ranges for 1981, letter to Congress . . 649 Cash Discount and Fair Credit Practices Acts, state- Silver market, statement on impressions and reacment 384 tions to recent events 462 Consumer Usury Study Commission Act, statement . 641 Silver market speculation, statement on Chairman's Credit needs of inner-city minority communities, and Federal Reserve's role in assessing financial restatement on steps to meet 471 percussions 388 Equal Credit Opportunity and Fair Housing Acts, statement on enforcement activities 20 Home Mortgage Disclosure Act, statement 217 Walker, Billy J., appointed director, Jacksonville Privacy legislation, proposed, statement 386 Branch 272 Rebates of unearned finance charges, statement on Walker, Jefferson A., temporary appointment as Assistcomputing 10 ant Secretary of Board 833 Timm, H. Alan, elected Class A director, Boston .... 266 Wallich, Henry C. Transfers of funds Export trading companies, statement 311, 642 Check collection rules, changes to speed up large dol- Foreign bank holding companies, statement on nonlar-value checks 151 banking activities 550 Electronic fund transfers International financial conditions, statement 12 Article 290 International Monetary Fund, statements on increas- Film produced by Federal Reserve Bank of Phila- ing U.S. quota 299, 302 delphia, release 746 Wallis, Gordon T., elected Class A director, New York 267 Regulations E and J (See Regulations) Weitnauer, John H., Jr., appointed Class C director and Rules Regarding Delegation of Authority, amend- Deputy Chairman, Atlanta 271 ments affecting 11A Wilson, Will E., appointed director, Houston Branch . . 279 Telephone or preauthorized transfers, amendment Winn, Donald J., appointed Assistant to Board for Conto Regulation D 965 gressional Liaison 966 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A100 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories r?»cis t Kansas \§> . Louisville Dallas® 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 Digitized for FRASERS ystem http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis