Federal Reserve Bulletin, 1981-08

V olum e 67 □ N um ber 8 □ A ug ust 1981 FEDERAL RESERVE BULLETIN B o a rd o f G o v e rn o rs o f th e F e d e ra l R e s e rv e S y s te m W a s h in g to n , D . C . Publications Committee Joseph R. Coyne, Chairman □ Stephen H. Axilrod □ Michael Bradfield Janet O. Hart □ James L. Kichline □ Tony J. Salvaggio □ 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 595 M onetary P olicy R eport to loans of up to 1 percent above the Federal Congress Reserve discount rate, before the Senate Committee on Banking, Housing, and Ur­ Because inflationary forces are still well ban Affairs, July 21, 1981. entrenched, the Federal Reserve must re­ main firmly committed to a policy of mone­ 620 John E. Ryan, Director of the Board’s tary restraint. Division of Banking Supervision and Regu­ lation, discusses the final report of the 607 Staff Study General Accounting Office on the Currency and Foreign Transactions Reporting Act In “Federal Reserve Decisions on Bank and says that the Board is fully committed Mergers and Acquisitions during the to taking and strengthening, whenever nec­ 1970s,” no distinct trends were found in the essary, appropriate measures to ensure Board’s decisions on mergers and acquisi­ compliance with this act, before the Sub­ tions during the period under study. committee on General Oversight of the House Committee on Banking, Finance and 608 Industrial Production Urban Affairs, July 23, 1981. Output increased about 0.3 percent in July. 623 Lyle E. Gramley, Member, Board of Gov­ ernors, discusses his views on interest 610 Statements to Congress rates, including why interest rates are so Paul A. Volcker, Chairman, Board of Gov­ high, and says that in the long run the only ernors, says that the essential point about way to reduce interest rates is to reduce U.S. macroeconomic and monetary policies inflation, before the Senate Forum, July 27, is the commitment to reducing inflation, 1981. before the Joint Economic Committee, July 16, 1981. 625 Announcements 613 Chairman Volcker reviews the conduct of Survey of financial institutions to determine monetary policy and reports on the Federal compliance costs and benefits associated Reserve’s objectives for the growth of mon­ with consumer protection regulations. ey and credit for 1981 and tentative targets for 1982, before the House Committee on Revision of Regulation C, which imple­ Banking, Finance and Urban Affairs, ments the Home Mortgage Disclosure Act. July 21, 1981, and before the Senate Com­ Amendment to Regulation Y to limit the mittee on Banking, Housing, and Urban insurance agency activities authorized for Affairs, July 22, 1981. bank holding companies. 618 Nancy H. Teeters, Member, Board of Gov­ Adoption of fee schedule for securities and ernors, presents the Board’s views on two noncash collection services provided by the proposed bills: one that would authorize Federal Reserve Banks. loans at interest rates in excess of state usury ceilings, and the Credit Deregulation Proposed revision in fee schedules for and Availability Act of 1981, which would transportation services in supplying curren­ temporarily allow any lender to originate cy and coin to the nation’s banks and thrift Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

institutions; proposed amendments to Reg­ A67 Guide to Tabular Presentation, ulation Y concerning certain data process­ Statistical Releases, and Special ing activities by bank holding companies. Tables Changes in Board staff. A68 Board of Governors and Staff Admission of one bank to membership in the Federal Reserve System. A70 Federal Open Market Committee and Staff; Advisory Councils 629 Legal Developments A71 Federal Reserve Banks, Amendment to Regulation Y; various bank Branches, and Offices holding company and bank merger orders; and pending cases. A72 Federal Reserve Board Publications Al Financial and Business Statistics A3 Domestic Financial Statistics A74 Index to Statistical Tables A44 Domestic Nonfinancial Statistics A52 International Statistics A76 Map of Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to Congress Report submitted to the Congress on July 20, in the food and energy sectors. Sensitive com­ 1981, pursuant to the Full Employment and modity prices, more broadly, have been re­ Balanced Growth Act of 1978.1 strained by the high cost of credit and reduced speculative interest. In short time periods, how­ ever, prices in these sectors can be greatly F ederal R eserve P olicy and the influenced by developments only tangentially O utlook fo r 1981 and 1982 related to broader trends in the economy and can be quite volatile. The underlying inflationary The Objectives of Monetary Policy tendencies in the economy generally are better captured by trends in labor costs—the largest The Federal Reserve reported to the Congress in element in production costs for both goods and February that the principal objective for mone­ services. While unit labor costs have shown tary policy in 1981 would be to exert continuing scattered and tentative indications of some mod­ resistance to inflationary forces. This goal re­ eration in their rise, their advance remains rapid. quires gradual reductions over time in the expan­ One key element in slowing the rise in costs is sion of money and credit to rates consistent with avoiding excessive pressures on productive ca­ sustainable growth in output at reasonably stable pacity. Restraint on growth of money and credit prices. Signs of a deceleration in broad price helps to prevent such pressures. But the process measures this year are encouraging. Nonethe­ of slowing inflation through monetary restraint less, inflationary forces are still well entrenched, can entail strains on particular markets and sec­ and the Federal Reserve must remain firmly tors of the economy, especially when so much of committed to a policy of monetary restraint. the task of dealing with inflation rests on mone­ The persistence of inflation and the extraordi­ tary policy. As long as strong demands for mon­ nary costs it imposes on the economy have been ey and credit persist and inflationary expecta­ widely demonstrated in recent years. Deeply tions remain intense, restrained monetary embedded expectations of inflation have created growth may be accompanied by high interest serious imbalances in financial markets, distort­ rates and considerable financial stress. These ed spending patterns throughout the economy, financial strains impose particular hardships on and imparted a strong upward momentum to industries that depend heavily on credit markets wages and prices. At the same time, productivity such as construction, consumer durable goods, growth has slowed markedly, and the unemploy­ and business equipment. Most obviously, the ment rate has remained consistently high by thrift institutions are experiencing severe pres­ historical standards. Dealing with the inflation sures on earnings and reduced inflows of depos­ problem, with all its difficulties, is essential if we its. More generally, the recent inflation, com­ are to provide a solid base for sustained growth, bined with a long period of relatively slow lower unemployment, and higher productivity, growth in activity, has distorted the balance goals central to the Humphrey-Hawkins Act. sheets of many businesses and individuals, leav­ The reduced rate of increase in prices this year ing them more vulnerable to adverse financial has reflected, in substantial part, developments and economic developments. Lasting relief from these financial pressures will be dependent on success in dealing with the 1. The charts and appendixes of this report are available inflation that lies at the root of the problem. on request from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Monetary stimulus can encourage, at best, only Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

596 Federal Reserve Bulletin □ August 1981 short-lived declines in interest rates and would of the rapid structural changes that are under without question sustain or aggravate underlying way in financial markets in response to high and inflationary forces. The only effective way to volatile interest rates and to an evolving regula­ bring down interest rates and restore financial tory environment. stability is through the sustained pursuit of anti­ Recently, the most prominent structural devel­ inflation policies. The more quickly inflationary opment affecting the measured aggregates has forces are defused, the greater the potential for a been the introduction at the end of 1980 of NOW sustained easing in credit market conditions and accounts nationwide. As expected, there have a return to more satisfactory production and been major shifts of funds into NOW accounts employment growth. from conventional checking accounts included in Disciplined money policy is an essential ele­ Ml-A and from interest-earning assets included ment in the effort to damp inflationary forces. in M2. Consequently, the Federal Reserve is Progress in this direction will be speeded and the publishing estimates of Ml-A and Ml-B that are near-term hardships minimized if other govern­ adjusted for these shifts in order to facilitate ment policies complement the efforts of the mon­ comparisons with earlier years. Through June, etary authority. As businesses and wage earners these adjustments have had the effect of raising become convinced that the government is com­ Ml-A by $28 billion and lowering Ml-B by $10 mitted to slowing the rise in prices, expectations billion. Shifts into NOW accounts were particu­ of inflation will have a lessening impact on the larly large early in the year, reflecting the rapid determination of wages, interest rates, and response by individuals with large demand de­ prices. In this regard, the stance of fiscal policy is posit balances. Over the past two months, in of particular importance. Assurance that growth contrast, the shift adjustments have been negligi­ in federal expenditures will be limited and that ble, as outflows from NOW accounts have been the budget will move toward balance will rein­ small. These outflows probably do not signal the force the effectiveness of monetary restraint and end of the NOW account buildup. The record in help relieve pressures on financial markets. New England, where NOW accounts were intro­ duced some time ago, suggests that the process of adjustment has further to go. Also, a recent The Growth of Money and Credit survey indicates that individuals are continuing to open NOW accounts, though at a much re­ The targeted ranges of growth for the monetary duced pace from earlier in the year. Even so, the aggregates announced in February anticipated a adjusted and unadjusted data are likely to contin­ deceleration in monetary growth. Measured from ue to move much more closely together than in the fourth quarter of 1980 to the fourth quarter of the early months of the year. 1981, and abstracting from the effects of the The shift adjustments published by the Federal authorization of negotiable order of withdrawal Reserve have attempted to correct for one im­ (NOW) accounts nationwide, the ranges adopted portant distorting influence on the narrow aggre­ were as follows: for Ml-A, 3 to 5'/2 percent; for gates. After taking account of these adjustments, Ml-B, 3V4 to 6 percent; for M2, 6 to 9 percent; Ml-A and Ml-B so far this year have been low and for M3, 6l/zto 9'/2 percent. The correspond­ relative to their past relationships to income and ing range for commercial bank credit was 6 to 9 interest rates. For example, despite the rapid percent. growth in nomined income over the first half of The monetary aggregates have shown dispa­ 1981, shift-adjusted Ml-B expanded at an annual rate patterns of growth so far this year. The rate of only 2 Vi percent from the fourth quarter of narrow aggregates, after adjusting for the newly 1980 to the second quarter of 1981. This was less authorized NOW accounts, have fallen short of than half the rate at which Ml-B grew in 1980 their ranges. At the same time, M2 growth has even after allowing for the shift into automatic been at the upper limit of its range, while M3 has transfer service (ATS) and related accounts last exceeded the upper end of its range. The diver­ year. In the first quarter especially, growth in gent behavior of the aggregates is symptomatic adjusted Ml-B was well below what would have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to Congress 597 been expected on the basis of average historical With the prime rate lagging behind the drop in relationships among money, income, and interest market rates, business loan growth showed a rates. Relatively low growth in transaction bal­ particularly sharp deceleration, as corporations ances has occurred on occasion when interest switched much of their borrowing to the com­ rates have reached new highs, such as happened mercial paper and bond markets. Later in the at the turn of the year. In addition, the introduc­ spring, however, business loan growth picked up tion of NOW accounts may have stimulated a again, as bond rates moved to all-time highs. general reconsideration of alternative deposit Real estate loans have shown a more even pat­ and nondeposit instruments and thereby have tern of growth, sustaining their moderate 1980 intensified the response to the peak in rates. rate of increase, while consumer loans outstand­ Indeed, at the same time that the narrow ing have continued to edge down this year. aggregates have been unusually weak, the broad­ Security holdings at banks have grown some­ er aggregates in the first half of 1981 have been at what faster than loans over the first half of 1981, or above the upper limits of their specified with the bulk of the increase accounted for by ranges. Instruments that offer market-deter- U.S. government obligations. So far this year, mined yields have continued to grow rapidly, bank credit growth has been almost 3 percentage insulating M2 from the damping effects of rising points slower than M3 growth. This divergence interest rates by encouraging investors to keep between the increase in bank asset portfolios and their funds in financial intermediaries rather than the expansion in M3—which includes most bank shifting into open market securities. The growth liabilities—mainly reflects the large increase in of money market mutual funds has been particu­ money market mutual funds; much of the inflow larly rapid, averaging about 125 percent at an to money funds was channeled into commercial annual rate from December 1980 to June 1981; paper and other nonbank instruments. this growth accounted for 60 percent of the At its meeting in July, the Federal Open Mar­ increase in the nontransaction component of M2. ket Committee (FOMC) reassessed the ranges it While available data do not permit accurate had adopted for money growth in 1981 and estimates, the exceptionally rapid growth in formulated preliminary objectives for 1982. In these funds, which at least in limited part are the light of all the circumstances, the FOMC used as transaction balances, may have lowered elected to retain the previously established growth in recorded Ml-B somewhat. To the ranges for the monetary aggregates over the extent that money market mutual funds attracted remainder of 1981. In doing so, the FOMC funds from the open market, the effect was recognized that the shortfall in Ml-B growth in higher M2 and M3. the first half of the year probably reflected in part Thus far this year, growth of M3 has averaged some shifting of transaction balances included in 11 Vi percent at an annual rate—about 1V* per­ Ml-B into other highly liquid assets; in light of centage points faster than last year and 2 per­ that pattern and the desire to moderate growth in centage points more than the growth of M2. money, the FOMC contemplates that growth in Large-denomination certificates of deposit, the narrow aggregates, adjusted for shifting into which are the main additional instruments in­ NOW accounts, over the year as a whole may be cluded in M3, have been growing strongly, re­ near the lower ends of their annual ranges. flecting the need for depository institutions to Growth in the broader aggregates, on the other expand their managed liabilities to offset the hand, has been running at the top or somewhat weakness in their core deposits. In addition, M3 above the upper ends of their ranges, and given appears to have been influenced by changing their behavior in the first half of the year, may be patterns of transactions between U.S. banks and toward the upper part of their ranges for the year their foreign branches. as a whole. Over the first half of 1981,, commercial bank As indicated, the nontransaction components credit grew on balance at a rate a bit below the of M2 that offer market-determined rates have upper limit of its range for 1981. Loan growth been growing vigorously, apparently in part at was strong early in the year but soon tapered off. the expense of market instruments not included Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

598 Federal Reserve Bulletin □ August 1981 in the aggregates. Moreover, the attractiveness broader aggregates in 1982 are as follows: for of the small-denomination, time deposit compo­ M2, 6 to 9 percent, and for M3, 6V2 to 9Vi nent of M2 recently was enhanced by the deci­ percent. The associated range for bank credit sion effective August 1 to uncap the ceiling on would remain at 6 to 9 percent. “small saver certificates” with maturities of two While the level of the range for Ml is a and one-half years or longer and to remove reduction from the Ml-B range for 1981, it also is ceilings entirely on small time deposits with widened by Vi percentage point. Interest-bearing initial maturities of four years or more. transaction accounts are in the process of be­ In the context of sluggish growth of profits and coming a sizable component of Ml-B. To a an expanding need for external financing, busi­ certain degree, those accounts have a greater ness loan demands seem likely to remain rela­ savings component for individuals than nontively strong, though a surge in long-term financ­ interest-bearing demand accounts. Because of ing could reduce business borrowing at banks if the changed composition of this component, bond rates were to fall. Other components of some time will have to elapse before the behavior bank credit are expected to continue recent of Ml with this component can be related with trends, with real estate loans showing moderate confidence to changing economic and financial growth and consumer lending remaining weak. circumstances. Moreover, when this shift in While total bank credit is subject to considerable composition will end is also uncertain. At pre­ short-run fluctuation, the 6 to 9 percent range for sent, we are assuming that the great bulk of the its growth in 1981 remains appropriate. growth in NOW accounts will have been com­ Looking ahead to 1982 and beyond, the FOMC pleted by the end of 1981, with only a small remains committed to reducing the growth of amount of funds continuing to be shifted from money to a rate consistent with noninflationary nontransaction balances. A firmer judgment economic growth. The speed with which mone­ about the transition can be made, of course, in tary expansion can be reduced without large light of added experience when the 1982 targets short-run effects on production and employment are reevaluated early next year. will depend critically on the forces bearing on The decision to leave unchanged the ranges for inflation and credit market demands, including M2 and M3 reflects in part the likelihood that the the fiscal position of the government. Also, dur­ proportion of credit demand financed through ing a time of rapid institutional change, monetary depository institutions rather than market instru­ targets must be chosen with close attention to ments will be modestly increased by the trend how such change may affect particular aggre­ toward reduced regulatory constraints. Actual gates and the relationships among them. In this growth in the broader aggregates is expected to regard, looking toward completion of the major fall somewhat lower in their ranges than in 1981. shift into NOW accounts, the FOMC now in­ tends to target a single Ml figure in 1982 with the same coverage as the present Ml-B. Assuming that shifts into NOW accounts from nontransac­ The Outlook for the Economy tion balances are small by that time, a separate shift-adjusted figure would not be necessary. The economy entered 1981 on a sharp upward Reflecting the intent to reduce growth in mon­ trajectory, but apparently little further growth in ey over time, the FOMC tentatively agreed on an activity has occurred since early in the year. Ml range of IVi to 5Vi percent for 1982. This Auto sales fell with the termination of price would involve reductions in the upper and lower concessions this spring, and real retail sales ends of the range for Ml-B (as shift adjusted in excluding autos have declined in the second 1981) of Vi and 1 percentage point respectively. quarter. Housing construction activity also has The growth ranges for M2 and M3 would be left slackened appreciably, while business spending unchanged from those in effect for 1981, a speci­ for capital goods apparently has edged down fication that would be fully consistent with a after allowing for inflation. Preliminary estimates reduction in the actual growth of those aggre­ suggest that real gross national product showed gates in 1982. Thus, the tentative ranges for the no increase in the second quarter, and it now Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to Congress 599 appears that economic activity will remain slug­ fecting this outlook is the speed with which gish at least in the near term. progress is made in reducing inflation. As noted In the investment sectors, the weakness in earlier, some slowing has occurred in the rate of residential construction likely will persist for inflation thus far this year, and the near-term some time. Declines in housing starts, such as outlook is that prices will continue to rise at a occurred in the first half, typically are reflected more moderate pace than last year. The recent with a lag in reduced construction activity. Thus, decline in food prices probably will be reversed even if market interest rates should ease soon, in the second half of 1981 in response to tighten­ homebuilding would tend to be sluggish for a ing supply conditions in some areas. But other while. Business fixed investment also displays factors should work to offset these movements. some signs of weakening, although energy re­ In particular, the current weakness in world oil mains a strong sector. Contracts for business markets appears to militate against any substan­ construction and orders for new equipment have tial rise in petroleum prices over the next few been on a downtrend in real terms. In addition, quarters. Also, the increase in the foreign ex­ the Commerce Department’s survey of capital change value of the dollar since the end of last spending intentions indicates that, for the second year, unless reversed, should further reduce do­ time this year, firms have scaled back their mestic price pressures. expected outlays, and at present their spending The pace of wage increases has abated only a plans imply almost no growth in real terms for little despite relatively high levels of unemploy­ 1981 as a whole. ment. The rapid increases in consumer prices in Consumers also may hold down spending in 1980 have been a factor in large upward wage response to slower growth in real income and to adjustments this year, as workers have attempt­ indications that finding or retaining a job may ed to recapture losses of real income. Strong become more difficult as the year progresses. productivity gains, such as occurred in the first Recent surveys indicate that some retrenchment quarter of this year, can hold down unit labor has taken place in anticipated expenditures for costs even when nominal wages rise rapidly. But consumer goods by households, in part owing to a sluggish pattern of activity, such as is anticipat­ concerns about restrictive credit conditions. ed for the remainder of this year, is likely to be The recent appreciation of the dollar, com­ associated with small productivity gains, sug­ bined with only moderate economic growth gesting relatively little alleviation of labor cost abroad, points to a slowing in the growth of pressures in the period immediately ahead. exports. Over coming quarters, the real volume The members of the FOMC, in assessing the of exports could well decline a bit. economic outlook, have formulated projections Government expenditures in real terms should for economic performance in the current year rise relatively little. Outside the defense area, and in 1982 that fall within the ranges indicated in spending by the federal government is expected table 1. In addition to the monetary growth rate to contract in real terms, based on proposed targets, the principal assumptions underlying budget cuts for fiscal year 1982. And state and these projections are that there will be a cut in local governments currently are seeking ways to curb expenditures in response to reduced income 1. Economic forecasts of the FOMC from federal grants and to slower growth in tax receipts. Some stimulus to private sector de­ Actual Projected mands would be provided by the reductions in Item 1980 1981 1982 personal and business taxes now under consider­ ation by the Congress; however, at this time Change from fourth quar­ ter to fourth quarter, most of the impact of the proposed tax cuts percent Nominal GNP............... 9.4 10 to IV/2 9l/2tol2I/4 seemingly would affect private markets in the Real GNP...................... -.3 1 to VA 1 to 4 second half of 1982. Implicit GNP deflator .. 9.8 IVi to 9 6»/2 to SV2 While the near-term outlook suggests a flat Average level in fourth quarter economy, it is more difficult to foresee the path Unemployment rate (percent)................. 7.5 IVi to 8‘/4 7 to 8Yi of developments in 1982. A crucial element af­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

600 Federal Reserve Bulletin □ August 1981 business and personal income taxes, most of however, the economy clearly lost its upward which occurs in 1982, and that growth of federal momentum during the first quarter. Over the past expenditures will slow. several months, activity has been about un­ Most of the members believe that economic changed on balance. The initial strength of aggre­ growth will remain sluggish in the second half of gate demand this year was centered in consumer this year, resulting in some further rise in the durable outlays and business fixed investment. unemployment rate by year-end. The outlook for Spending in these sectors began the year on a 1982 reflects the broad range of views among strong uptrend and was bolstered for a time by members of the FOMC about the pace at which the various automobile price concessions. In the rate of inflation will be reduced. While most recent months, however, spending for consumer expect growth in nominal gross national product and business capital goods has flattened out. At to slow somewhat next year, views on how the the same time, residential construction activity composition of expenditures will be divided be­ weakened in response to rising mortgage rates, tween prices and output are less uniform. after having been aided this winter by compara­ The administration, in association with its mid­ tively moderate weather. Inventories appear to year budget review, has updated its forecast of be under good control, except for autos, as high the behavior of major economic variables for financing costs have reinforced the continuing 1981 and 1982 (shown in table 2). desire of businesses to maintain lean stocks. As compared with the projections of FOMC Unexpectedly favorable developments in vola­ members, the administration’s forecast for 1982 tile food and energy prices played a major role in indicates a greater expansion in nominal GNP. a noticeable moderation of the broad measures of The forecast for the GNP deflator is within the inflation during the first half. Nonetheless, some range indicated by Committee members, but real limited evidence of a slowing in underlying cost growth is higher. Such an outcome would seem pressures was apparent. Unit labor costs ad­ to depend on a substantial rebound in productivi­ vanced less quickly in the first quarter than over ty in the wake of the tax and regulatory changes last year, reflecting a spurt in productivity now in prospect, and, relative to historical expe­ growth. The moderation in unit labor costs ap­ rience, on a considerable willingness by the pears to have continued this spring, as wage public to economize on cash balances in re­ increases slowed in a few sectors. The marked sponse to continuing changes in financial tech­ appreciation of the dollar in exchange markets nology and other factors. also began to reduce inflationary pressures through the lowering of import prices and the associated competitive restraint on domestic 2. The administration’s forecast prices. Item 1981 1982 Personal Consumption Expenditures. Con­ Change from fourth quarter sumer outlays rose sharply early in the year, with to fourth quarter, percent Nominal GNP..................................... 11.8 12.9 strength concentrated in spending for relatively Real GNP............................................. 2.5 5.2 discretionary items such as autos, furniture and Implicit price deflator........................ 9.1 7.3 appliances, and apparel. This increase in spend­ Average level in fourth quarter Unemployment rate (percent)........... 7.7 7.0 ing was associated with a reduction in the per­ sonal saving rate to its lowest level in nearly 30 years. In part, the willingness of consumers to A Review of Recent Economic and save less and to borrow more may have reflected Financial Developments the reduction in their debt burdens that occurred last year in conjunction with the credit restraint Economic Activity program. In addition, the drop in the saving rate during the First Half of 1981 undoubtedly was related to the temporary oppor­ tunity to save on auto purchases afforded by the The snapback from last year’s brief but sharp sizable rebates offered mainly in February and recession carried into the early part of 1981; March; auto sales accounted for more than half Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to Congress 601 of the increase in spending for durable goods in the inventory of U.S.-made autos had risen to 87 the first quarter. days supply, only slightly below the peak report­ Once most of the rebate programs ended, ed in May 1980. Thus, with sharp increases in however, auto sales dropped sharply and re­ auto inventories and with manufacturers’ real mained at a reduced pace throughout the second inventories showing relatively little change in quarter. In addition to the cutback in auto de­ April and May, overall business inventories mand, spending for furniture and appliances also probably rose in real terms during the second weakened in the second quarter. At the same quarter. Apart from autos, however, business time, outlays for general merchandise increased inventories still appeared to be well in line with only moderately, and continuing conservation sales in the second quarter. efforts led to cutbacks in the volume of gasoline purchases. On balance, consumption expendi­ Residential Construction. Residential con­ tures appeared to have declined slightly in the struction activity weakened considerably over second quarter after allowing for inflation. In the first half of 1981. Housing starts, which had effect, after the first-quarter surge in durable been averaging about IVi million units at an goods purchases, consumers retrenched to rees­ annual rate in the latter part of 1980, moved tablish a more normal spending pattern; even so, down toward a rate of 1 million units over the the saving rate remained very low by historical course of the past six months. Although starts standards. declined early in the year, the value of construc­ tion put in place did not begin to fall appreciably Business Investment. Real business fixed in­ until the spring, reflecting in part the favorable vestment increased at a 13 percent annual rate in winter weather as well as the normal lag between the first quarter, as temporary developments starts and construction activity. combined to boost spending. In the equipment In the single-family sector, starts declined 30 area, businesses took advantage of the rebates percent from December 1980 to June 1981. Sales offered on cars and added heavily to their fleets. of new and existing single-family homes also Nonresidential construction also increased vig­ have dropped sharply this year. With conven­ orously early in the year, aided by the relatively tional mortgage rates again rising to unprece­ mild weather throughout much of the country. dented levels, sales activity has been supported Following this surge, capital spending appears to some extent by sellers offering concessionary to have declined this spring. Shipments of nonde­ financing. At the same time, some deceleration fense capital goods have been little changed on in house prices has been apparent; existing home balance, and business purchases of autos prices increased at a 4 percent annual rate during dropped sharply following the end of the rebate the first five months of 1981 compared with 14 programs. Nonresidential construction spending percent last year. also fell in the second quarter, reflecting in part After showing a spurt late last year, multifam­ the sustained tautness in financial markets so far ily starts also have dropped sharply this year. this year. In addition, the quickening of activity Activity in this sector has increasingly been that typically occurs in the spring was not so devoted to the construction of condominiums strong as usual, after the relatively mild winter. and cooperatives rather than rental units. First- Business inventories declined in real terms quarter data indicate that construction of such during the first quarter, continuing the liquida­ “for sale” units was up almost a third from a tion that had been under way over the second year earlier and accounted for 45 percent of half of last year. Early this year, manufacturers multifamily starts. The popularity of condomini­ were rebuilding their stocks at a substantial rate, ums and cooperatives probably reflects their but this accumulation was more than offset by attractiveness as a lower-cost alternative to new the liquidation of auto stocks that resulted from single-family homes. the various rebate programs. With the end of the price concessions, however, auto sales weak­ Government Expenditures. Federal govern­ ened appreciably and dealer stocks rose quickly ment purchases of goods and services rose at an during the second quarter. At the end of June, annual rate of 15 percent in real terms in the first Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

602 Federal Reserve Bulletin □ August 1981 quarter and then declined in the second quarter. ports in the first half. The volume of imports also This volatility was entirely attributable to acqui­ has expanded rapidly so far this year. Strong sitions of agricultural inventories by the Com­ domestic demands during the first quarter and modity Credit Corporation in the first quarter the appreciation of the dollar helped boost im­ and a runoff of these stocks in the second quar­ ports. Oil imports increased from their year-end ter. Defense spending in real terms was virtually levels, although the volume continued to be unchanged during the first half of the year, but below the average for 1980 as a whole. sustained growth of order backlogs at manufac­ The U.S. merchandise trade deficit declined turers of defense goods indicates continued eco­ from about $22 billion at an annual rate in the nomic stimulus from this source. Increases on fourth quarter of 1980 to roughly $18 billion in the revenue side of the budget offset this expan­ the first quarter of 1981. The current account, sionary influence. Large social security tax in­ reflecting this improved trade performance as creases became effective at the beginning of the well as larger net investment income from year, and the rapid growth in GNP at the turn of abroad, changed from a $6 billion surplus (annual the year boosted other revenues. On balance, the rate) in the fourth quarter of 1980 to a surplus of budget shifted toward restraint. The federal defi­ about $12 billion in the first quarter of this year. cit on a national income accounts basis probably But with export growth slowing recently, the shrank by about $26 billion at an annual rate trade deficit apparently widened in the second between the fourth quarter of 1980 and the quarter and the current-account surplus was re­ second quarter of 1981, while the high-employ- duced. ment budget, which abstracts from the effects of changes in economic activity, became more re­ Employment and Labor Markets. Employ­ strictive by a similar amount as the unemploy­ ment expanded at a much slower rate during the ment rate was little changed over the period. first half of 1981 than during the second half of Real purchases by state and local governments 1980; in June, nonfarm payroll employment was edged down over the first six months of the year, about 565,000 higher than in December, com­ following no growth throughout 1980. In general pared with an increase of 860,000 over the pre­ the continued sluggishness in this sector reflect­ ceding half-year. On balance, the increase in ed the effects of fiscal limitation measures passed employment was barely sufficient to absorb the in a number of areas in recent years, as well as influx of workers into the labor force, and the reduced growth of federal grants-in-aid. Employ­ unemployment rate hovered around 7.4 percent ment fell slightly in the first half, with job losses throughout the first half of the year, just below greatest in the federally funded public service its 1980 high of 7.6 percent. employment program. Spending for construction Employment has continued to rise at a moder­ was about unchanged. Despite the expenditure ate pace in the services and trade sectors, while cuts, outlays did not decline so rapidly as re­ the number of manufacturing jobs has expanded ceipts, and the state and local government sec­ sluggishly this year and remains below the previ­ tor’s operating surplus was almost completely ous peak in 1979. Employment in the automotive erased by spring after having been consistently industry has continued at a depressed level, positive for several years. despite some recalls, with 160,000 auto workers still on indefinite layoff at the end of June. In International Trade and Payments. Real ex­ recent months sharp declines occurred among ports of goods and services grew rapidly in the construction workers, reflecting weak building first quarter of 1981, in part because of strong activity this spring. The number of government growth in GNP of two of our major trading jobs also has contracted since February, as fed­ partners, Canada and Mexico. The growth in real eral hiring was curtailed and cutbacks in federal­ exports moderated somewhat in the second quar­ ly funded public service jobs reduced state and ter in response to a slowing of economic expan­ local payrolls. sion abroad and the appreciation of the dollar. Increases in both agricultural and nonagricultural Prices and Labor Costs. The pace of inflation exports contributed to the growth of total ex­ slowed considerably in the first half of this year, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to Congress 603 receding from double-digit rates for the first time distinct moderation in the rate of increase in in two years. The consumer price index rose at home prices this year. an annual rate of about 8V2 percent through May Prices of consumer items other than food, compared with YlVi percent over 1980. The relief energy, and homeownership increased at an an­ has been concentrated in the food and energy nual rate of 8 Va percent over the first five months areas; however, a considerable slowing of price of 1981, somewhat below the 10 percent pace increases for consumer commodities more gener­ over the 12 months of 1980. The moderation in ally also has been evident in 1981 compared with price gains for commodities excluding food has the previous year. Inflation in the consumer been particularly striking; these items deceler­ service sector, on the other hand, has diminished ated from a pace of 11 Vi percent over the 12 little, owing in large part to the substantial weight months of 1980 to 8 percent in the first part of that rising labor costs have in this sector. 1981. Prices for consumer services other than Retail food prices rose at an annual rate of less home financing and energy, however, have bare­ than 1 percent in the first five months of 1981, in ly edged off from the 10Va percent pace of 1980, marked contrast to the 10 Va percent pace of 1980. as increases in these items tend to follow more The deceleration in food prices in early 1981 was closely the underlying trend in labor costs. largely confined to sharp declines for meats and Movements in labor costs reflected several related products. More recently, however, the special factors in the first half in addition to wage slowdown has been much more widespread. and productivity changes. Growth in hourly Prices of fresh fruits and vegetables fell sharply compensation—which includes employer contri­ in May, and the rise in prices of dairy products butions to social insurance and the costs of fringe slowed noticeably. benefits—accelerated from a pace of 10 percent In the energy area, price increases by the in 1980 to 1IV2 percent in the first quarter, owing Organization of Petroleum Exporting Countries, to an upward adjustment in the tax rate for social coupled with full decontrol of domestic crude security contributions and a rise in the base petroleum, led to a surge in energy prices early in salary to which the tax rate is applied. 1981; in the first three months overall retail On balance, the pace of wage increases in the energy prices rose at just under a 50 percent first half appears to have moderated somewhat. annual rate. Later, however, the rise in energy The index of average hourly earnings, which is a costs slowed sharply, reflecting the emergence of measure of wage trends for production and nonrelatively abundant supplies in petroleum mar­ supervisory personnel, increased at an annual kets. Declining demands combined with high rate of 8V2 percent in the first six months of the levels of production by Saudi Arabia have result­ year compared with 9l/z percent last year. In ed in price reductions at both the producer and manufacturing, moreover, wage increases so far the refiner levels in the second quarter. Even so, this year have been running well below the 11 energy prices did not decline overall, as prices of percent rate posted in 1980, possibly due to the natural gas—currently undergoing decontrol— light calendar for new bargaining settlements. and electricity continued to rise. While wage increases have abated somewhat, Costs of homeownership, as measured in the the pace of advance remains strong. Some up­ consumer price index, also have risen more ward pressures have been generated by catchup slowly. So far this year, this component has adjustments in response to the steep rise in increased at an annual rate near 8 percent, less consumer prices last year. In addition, the sched­ than half the pace of 1980. The home price uled minimum wage increase in January boosted measure used in constructing this component has wage rates in the trade and service sectors early fallen on balance this year, but higher financing in the year. costs have more than offset this decline. The CPI The sharp rebound in productivity had a mod­ measure of home prices is based on a relatively erating influence on the rise in unit labor costs in small sample of home sales, and thus, the recent the first quarter, offsetting some of the sizable absolute declines in this measure may overstate increases in wages and other labor expenses. the degree of softening in housing prices. How­ Nonetheless, the cyclical recovery of productivi­ ever, other broader-based indexes indicate a ty since mid-1980 has been sluggish by historical Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

604 Federal Reserve Bulletin □ August 1981 standards, and by the first quarter of 1981 output helped move most long-term rates well above per hour in the nonfarm business sector was just their previous highs. Since peaking in May, 1 percent above the level a year earlier. More­ however, long-term rates have retraced some of over, estimates of weak growth in output suggest their earlier gains for the year. This improvement that productivity gains provided little, if any, seems to reflect in part more optimism about the offset to wage increases in the second quarter. prospects for reduced inflation as encouraging price data were reported, as indications appeared that economic growth had slowed, as firmness in Financial Developments monetary policy was apparent, and as confi­ during the First Half of 1981 dence grew that government policy would appro­ priately restrain federal spending. Interest Rates. Short-term market interest rates began the year at, or only a bit below, Foreign Exchange Markets and the Dollar. record highs after having been on an uptrend The dollar appreciated strongly during the first since mid-1980 as economic activity^, rebounded half of 1981, rising about 15 percent on a weight­ and the Federal Reserve sought to restrain mone­ ed-average basis. Increases against European tary expansion. During the opening months of currencies averaged about 20 percent, while the 1981, however, money growth weakened, and appreciation against the yen was 10 percent. the demand for reserves fell relative to the provi­ Over some time intervals, short-run movements sion of nonborrowed reserves consistent with the in exchange rates paralleled the course of differ­ FOMC’s monetary targets. Short-term rates be­ entials between U.S. and foreign short-term in­ gan to ease, and by the end of the first quarter, terest rates. But over the first half as a whole, the the federal funds rate was 6V2 percentage points dollar appreciated considerably even though below its January peak, while other short-term U.S. interest rates fell on balance relative to rates were down 2 to 3 percentage points. Early rates in key financial markets abroad, which in the second quarter, growth in money acceler­ have risen markedly. A substantial part of the ated, renewing pressures in the reserves market. dollar’s buoyancy can be associated with the This, along with an increase of 1 percentage improved outlook for U.S. inflation and the point on May 5 in both the discount rate and the growing consensus that monetary restraint will surcharge rate, gave an upward impetus to short­ be applied over an extended horizon. In addition, term rates. These rates later declined somewhat the continental European currencies have been as money growth weakened in May and June, but weakened by the tensions over Poland and by in early July they were about at the same levels general political uncertainties in several Europe­ or a bit higher than at the beginning of the year. an countries. Long-term interest rates moved quite differ­ ently than short-term rates, particularly during Domestic Credit Flows. After rebounding rap­ the first quarter. Like many short-term rates, idly in the second half of 1980, total funds raised bond rates began the year somewhat below the in credit and equity markets by domestic nonfi­ record highs that had just been established in nancial sectors of the U.S. economy leveled off December. However, in contrast to the declines in the first half of 1981, based on preliminary in yields on short-term instruments, long-term estimates. Firm credit market conditions contrib­ rates generally rose over the first quarter. Many uted to some slowing in credit flows to private financial market participants apparently were sectors, especially mortgage flows to house­ concerned about underlying inflationary pres­ holds. Borrowing by nonfinancial businesses ta­ sures and about the prospects for continuing pered off in the first four months of the year, but large budget deficits in an environment of strong began to pick up in late spring. On a quarterly private credit demands. Such concerns, includ­ basis, the pattern of credit flows was greatly ing the growing backlog of potential long-term affected by the U.S. Treasury, which tapped financing, continued prominent in market senti­ financial markets for an exceptionally large vol­ ment during much of the second quarter, and the ume of funds early in the year and then did very rise in short-term rates early in the quarter also little net borrowing in the spring. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy Report to Congress 605 The credit requirements of the U.S. Treasury quarter, some firms’ short-term needs were met were substantial in the first quarter, owing to a by borrowing from foreign branches of U.S. combined (on- and off-budget) federal deficit that banks at rates tied to Eurodollar rates; issuance exceeded $38 billion. In addition, redemptions of of commercial paper also increased, though not savings bonds totaled more than $2 billion, fur­ enough to offset the decline in bank borrowing. ther boosting Treasury financing needs. The Near midyear, more favorable rate spreads for Treasury met these needs primarily by issuing bank loans and a bigger gap between cash flow marketable securities and, to a lesser extent, by a and investment expenditures—largely the result further reduction in cash balances. In the second of increased inventory accumulation—encour­ quarter, when normal seasonal tax receipts aged renewed expansion of business loans at moved the combined federal budget to a surplus commercial banks. Growth of nonfinancial com­ position, the Treasury used inflows to rebuild its mercial paper also continued robust in the sec­ cash balances and to pay down an additional $2 ond quarter. billion of nonmarketable securities. While short-term borrowing fluctuated, long­ Borrowing by state and local governments term bond issuance by business firms was main­ remained heavy in the first quarter of 1981 de­ tained at a fairly heavy pace over most of the first spite a sharp decline in the issuance of mortgage half. Some companies with major long-range revenue bonds. The volume of housing-related investment programs apparently have elected to bonds dropped dramatically after January 1, come to the bond markets at regular intervals to 1981, when statutory restrictions on such offer­ reduce their risk of having to finance large ings took effect. These restrictions, among other amounts at particularly unfavorable rates. Firms things, place limitations on eligible uses of the tapping the bond markets, meanwhile, sought to funds with respect to the value and location of hold down borrowing costs by adjusting various homes and the types of homebuyers and the terms of their offerings. In addition to shorter spread between mortgage rates and the original maturities, an increased volume of convertible cost of borrowing; also, the volume of mortgage debentures and bonds with below-market—or bonds that can be issued by governmental units zero—coupons were sold at deep discount. is limited. The volume of nonhousing issues early A moderate slowing in bond issuance occurred in 1981 was buoyed in part by offerings that had in May when yields on long-term debt reached been postponed in the fourth quarter, when a new highs, and in June, expectations of nearlarge number of mortgage revenue bonds were term rate declines may have led some firms to brought to market in anticipation of regulatory delay or postpone offerings. But continued indi­ restrictions and yields on municipal bonds rose cations were that bond issuance would increase to then-record levels. State and local govern­ quickly in the event of improved market condi­ ments reduced their issuance of long-term debt in tions because many firms would like to reduce the second quarter as interest costs rose again to their short-term indebtedness. Flow of funds record highs. However, financing requirements estimates indicate that the aggregate ratio of of many municipal units remained substantial, in short-term debt to total debt of nonfinancial part owing to declines in revenues resulting from corporations has risen well above the previous cutbacks in grants-in-aid to state and local gov­ record level reached in 1974. ernments. Net borrowing by the household sector de­ In the private sector, nonfinancial business clined slightly on balance in the first half of the firms borrowed at a reduced pace early in the year, as a modest recovery in consumer credit year. The falloff in borrowing was concentrated growth only partially offset a reduction in net in short-term credit markets, and, in particular, mortgage formation. Growth of consumer install­ reflected a sharp deceleration in growth of busi­ ment credit was bolstered in the first quarter by ness loans from domestic offices of U.S. banks. increases in automobile loans, particularly at The lag of the banks’ prime lending rates behind finance company subsidiaries of the automobile downward movements in open market rates re­ manufacturers. While auto loans slowed in the duced the relative attractiveness to businesses of second quarter in response to slackening car bank loans early in the year. During the first sales, the nonauto consumer goods and personal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

606 Federal Reserve Bulletin □ August 1981 loan categories of installment credit showed a record level of near 17 percent in late May and some pickup. Despite the increases in consumer remained near this level in June and July. Net installment debt, the debt position of the house­ mortgage lending at commercial banks also fell, hold sector continued to improve in the first half and fewer funds for housing were available from of the year. The ratio of consumer installment municipal units owing to the previously men­ debt repayments to disposable personal income tioned restrictions on issuance of mortgage reve­ fell further from 1979 peaks in the first four nue bonds. The taut mortgage credit conditions months of 1981, reflecting strong growth in in­ have led to increased use of so-called “creative come. financing ’ ’ technique s, including wraparound Home mortgage borrowing dropped sharply in loans, builder buydown arrangements, and the the first half. The weakness in mortgage activity assumption of low-rate first trusts when house was accounted for mostly by reduced lending by sellers are willing to take back a second mort­ thrift institutions. Weak deposit flows and con­ gage. One effect of such financing arrangements tinued erosion of earnings constrained the supply has been to slow the prepayment of old, lowof mortgage funds at thrift institutions, and rates yielding mortgages at the thrift institutions, thus on new commitments for conventional home reducing the earnings potential from reinvest­ mortgages at savings and loan institutions rose to ment of funds by these institutions. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

607 Staff Studies The staffs of the Board of Governors of the In all cases the analyses and conclusions set Federal Reserve System and of the Federal forth are those of the authors and do not neces­ Reserve Banks undertake studies that cover a sarily indicate concurrence by the Board of Gov­ wide range of economic and financial subjects. ernors, by the Federal Reserve Banks, or by the In some instances the Federal Reserve System members of their staffs. finances similar studies by members of the aca­ Single copies of the full text of each of the demic profession. studies or papers summarized in the Bulletin From time to time the results of studies that are available without charge. The list of Federal are of general interest to the professions and to Reserve Board publications at the back of each others are summarized—or they may be printed Bulletin includes a separate section entitled in full—in this section of the Federal Reserve “Staff Studies'9 that lists the studies that are Bulletin. currently available. Study Summary Federal Reserve Decisions on Bank Mergers and Acquisitions during the 1970s Stephen A. Rhoades—Staffy Board of Governors Prepared as a staff paper in late 1980. The 1960s and 1970s have been a dynamic time the 724 relatively important decisions made by for bank mergers and merger policy, due in large the Board, including 106 denials of applications, part to the Bank Merger Act of 1960 and the 1970 were in states in which multibank holding com­ amendments to the Bank Holding Company Act panies are important (most notably Florida). (1956). The potential importance of mergers and However, in general, important merger and ac­ acquisitions for competition and the rapid pace quisition decisions do not show any significant of merger activity since the late 1960s make a trends that could be regarded as indicative of review of this activity appropriate. Board policy. This staff study presents an overview of all The evidence, particularly in connection with bank mergers and acquisitions during the 20-year the primary arguments raised in the various period 1960-79. In addition, it provides a detailed cases, suggests that the Board has not attempted description of mergers and acquisitions that fo­ to innovate in its merger analysis and that no cuses on the structural and decision characteris­ distinct regulatory ideology has emerged. In­ tics of 724 relatively important cases that were stead, the Board—perhaps because of the sub­ considered by the Board of Governors during the stantial turnover of Board members during the last decade. seventies—apparently has opted for a rule of The data show that, from 1960-79, about 3,800 reason, maintaining consistency based on the banks with $100 billion in deposits were acquired precedents established in the courts and its own or merged. During the 1970s, a large number of previous decisions. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

608 Industrial Production Released for publication August 14 was again cut back, reflecting weakness in the housing market. Industrial production increased an estimated 0.3 Production of materials advanced 0.6 percent, percent in July, after a slight decline in June. largely reflecting the surge in coal output. Small­ Most of the rise in July reflected a continuation er, but nevertheless widespread, increases ocof the post-strike rebound in coal output. Pro­ duction of autos and trucks and construction Seasonally adjusted, ratio scale, 1967=100 supplies declined sharply. Growth in equipment output continued and production of materials other than coal increased somewhat. At 153.4 percent of the 1967 average, the index in July was 9.3 percent above the recent low in July 1980, and virtually the same as the high of 153.5 reached in March 1979. In market groupings, production of consumer goods was unchanged in July, as a sharp decline in autos and utility vehicles was offset by in­ creases in home goods—such as appliances—and in consumer nondurable goods. Autos were as­ sembled at an annual rate of 7.2 million units— down from a rate of 7.4 million units in June; a further reduction of nearly 10 percent is sched­ uled for August. Output of lightweight trucks was reduced sharply in July. Production of equipment advanced 0.5 percent, as both defense and space and business equipment increased; within the latter, production of transit equipment Federal Reserve indexes, seasonally adjusted. Latest fig­ declined further. Output of construction supplies ures: July. Auto sales and stocks include imports. Major market groupings 1967 == 100 Percentage change from preceding month Percentage change, Grouping 1981 1981 July 1980 to Junep July6 Mar. Apr. May June July July 1981 Total industrial production... 152.9 153.4 .5 .0 .5 -.1 .3 9.3 Products, total...................... 152.0 152.1 .6 .5 .6 -.3 .1 6.5 Final products..................... 151.4 151.7 .9 .7 .8 -.1 .2 6.5 Consumer goods............. 150.2 150.2 .9 .7 1.1 -.4 .0 5.8 Durable........................ 147.6 146.6 3.2 .8 2.2 .0 -.7 14.3 Nondurable................. 151.2 151.6 .0 .7 .6 -.5 .3 2.8 Business equipment....... 184.2 185.0 1.2 .8 .8 .4 .4 8.8 Defense and space......... 100.9 101.4 .3 .3 .0 .1 .5 4.3 Intermediate products........ 154.1 153.8 -.4 -.2 -.2 -1.0 -.2 6.4 Construction supplies ... 143.3 142.0 .2 -.5 -.7 -1.8 -.9 10.4 Materials................................ 154.4 155.4 .1 -.8 .5 .3 .6 13.8 p Preliminary. e Estimated. Note. Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

609 Major industry groupings 1967 == 100 Percentage change from preceding month Percentage change, Grouping 1981 1981 July 1980 to Junep Julye Mar. Apr. May June July July 1981 Manufacturing.................... 152.4 152.7 .5 .4 .5 -.4 .2 9.8 Durable............................ 143.2 143.2 1.1 .4 .8 -.4 .0 11.6 Nondurable.................... 165.8 166.5 -.4 .4 .1 -.3 .4 7.6 Mining................................... 141.7 145.6 .1 -5.3 .0 4.3 2.8 11.5 Utilities................................. 173.4 172.8 .5 -.1 1.9 .5 -.3 .6 p Preliminary. e Estimated. Note. Indexes are seasonally adjusted. curred in output of many durable and nondurable ble goods was unchanged during the month, as materials such as chemical materials and equip­ sharp declines in the output of motor vehicles ment parts. and parts were offset by increases in machinery, In industry groupings, manufacturing output in primary metals, and instruments. Output of non­ July increased slightly—0.2 percent—after a de­ durable manufacturing rose 0.4 percent, after a cline of 0.4 percent in June. Production of dura­ decline of similar magnitude in June. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

610 Statements to Congress Statement by Paul A. Volcker, Chairman, Board Foreign officials do rightly stress that, in our of Governors of the Federal Reserve System, interdependent world, U.S. economic develop­ before the Joint Economic Committee, July 16, ments and policies have ramifications for the 1981. policies and performance of other economies. Our weight in the world economy, while relative­ I appreciate the opportunity to appear before this ly smaller than in the early postwar years, is still committee to present the Federal Reserve’s significant, and leaders abroad have to take U.S. views on the international implications of U.S. economic policies into account when they formu­ macroeconomic policies, and particularly mone­ late their own programs. They want us to be tary policy. aware of the external implications of high dollar Inevitably, questions arise abroad, as they do interest rates and a rising dollar, as we should be. in this country, about particular techniques and The short-run effects—abroad as well as at implications of U.S. economic policies. After all, home—can indeed be discomforting. But we nearly all of the nations represented at the Otta­ should also have a sense of proportion about wa summit and most others are faced with diffi­ those effects. cult problems and choices in developing econom­ The United States should not and cannot as­ ic policy, and external influences on their sume the responsibility for all the economic interest rates and exchange rates inevitably raise difficulties of particular countries. In some in­ new complications for some—just as at times stances—for example, countries with sizable bal­ external developments complicate our own poli­ ance of payments deficits—some depreciation of cymaking. However, the expression of such con­ their currencies relative to the dollar may have cerns should not be taken as disagreement with been natural, and a number of countries have the basic intent or thrust of our policies, certainly internal reasons for following firm monetary poli­ not among those most closely concerned with cies. Changes in exchange rate relationships financial policy. I base that judgment on my own within Europe have been relatively small recent­ discussions with central bankers and finance ly, and most of the trade of those countries is not ministers abroad as well as on the conclusions affected by the substantial appreciation of the reached in May at the meeting of the Interim dollar. The point is often made in the context of Committee of the International Monetary Fund the dollar’s appreciation that oil and other com­ (IMF) in Gabon and more recently at the ministe­ modities are priced in dollars, but it should also rial meeting of the Organization for Economic be pointed out that monetary restraint in the Cooperation and Development (OECD). United States has contributed importantly to Accordingly, I expect that the President will squeezing out inflationary exesses in those mar­ hear a general endorsement of the broad pur­ kets. poses and objectives of U.S. economic policies In general, the relative weight of different when he meets next week with other heads of forces that have an impact on the economic state and government. Specifically, I believe policy problems of different countries is rarely that the priority the United States has attached to easy to trace. We all—certainly including the the fight against inflation is widely appreciated. United States—must guard against a temptation Indeed, the leaders of these very nations, along to assign undue responsibility to external forces. with many others, have long urged us to adopt I would remind you that any exchange rate rigorous and convincing anti-inflation policies, involves two national currencies; a change in and I do not believe they will change that attitude that exchange rate may reflect policies or devel­ now. opments in either country or more likely both at Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

611 the same time. The recent “strength” of the servers—and they are not confined to those dollar vis-a-vis some currencies headlined in the outside our borders—believe we are following a press has been relative; it may be—indeed has policy deliberately directed at achieving high been—influenced by conditions abroad, as well interest rates and dollar appreciation. Such as in the United States. I would note that short­ views are mistaken; the Federal Reserve has term interest rates in the United States are a bit neither an interest rate nor an exchange rate lower today than at the turn of the year, and objective. We do take the view that persistent interest rate differentials are narrower with re­ restraint in the growth rates of the monetary spect to continental European currencies. Yet aggregates is necessary to ensure lower infla­ the dollar has appreciated substantially against tion—and therefore lower interest rates—over those currencies over the past six months. time. I find no disposition among my colleagues Because of the potential for misunderstanding abroad to question that necessity. and because developments and policies here In the short run, interest rates are a function of have effects on other countries whose leaders the many factors that influence the demand for face difficult economic problems and choices, we money and credit, including the budgetary posi­ have a clear responsibility to listen closely to tion of the government, the strength of business their views, to explain our policies carefully, and activity, and the inflationary momentum. So long to respond to constructive, substantive criticism. as actual and expected inflation and nominal Prolonged misunderstanding is always danger­ demand remain strong, high interest rates should ous, for economic and political friction could not be surprising. Only when inflation slackens impair the fabric of the open international econo­ significantly and markets believe the slowdown my that serves us all. My perception is that, will be sustained can we look forward to mean­ fortunately, other countries have a broad under­ ingful, sustained declines in dollar interest rates, standing of our objectives and policies, com­ consistent with growth in real activity. bined with a good deal of impatience in awaiting Relative interest rates can and do influence results just as is sometimes the case at home. exchange markets. But that influence has to be The essential point about U.S. economic poli­ judged in the context of other influences working cies—monetary, fiscal, and others—is our com­ at the same time. As I have already suggested, it mitment to reducing inflation. Most of the for­ would be a mistake to attribute the roughly 20 eign leaders with whom I have talked readily percent weighted-average appreciation of the agree that it is in their countries’ fundamental dollar since December of last year primarily to interest, as well as ours, that the United States the behavior of nominal interest rates on dollar make significant progress against inflation. Be­ assets. The differential between U.S. interest cause of the dollar’s role in world financial rates and short-term interest rates on average in markets and because of the U.S. prominence in foreign industrial countries has declined about the world economy, a necessary condition for 2Vipercentage points since the end of 1980. U.S. the restoration of stability in currency markets short-term interest rates are now about 1 per­ and for the resumption of sustained, worldwide centage point less than their December average. economic growth is the restoration of greater Interest rates of countries on the continent of price stability in the United States. Europe are appreciably higher, yet currencies of Obviously, they, as we, would like to see these countries have depreciated substantially lower and more stable U.S. interest rates and relative to the dollar. Interest rates in two of the less variation in exchange rates. Everyone would summit countries, Japan and the United King­ agree that reduced inflation and a clear sense of dom, have declined this year; in Japan, the movement toward price stability must be the depreciation of its currency relative to the dollar basis for maintaining such stability over time. has been smaller than that of the continental Against that background, international discus­ European currencies. The yen, as well as the sions raise questions of means, not ends. Canadian dollar, has experienced a weighted- As you know, Federal Reserve monetary poli­ average appreciation this year. cy has been directed at restraint in the rate of Obviously, one must look beyond absolute or growth of the monetary aggregates. Some ob­ relative interest rates to explain the dollar’s Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

612 Federal Reserve Bulletin □ August 1981 appreciation this year. Among the other relevant “Like others, I shall applaud lower interest factors in the United States have been the first rates in the United States any day if they signal signs of some improvement in our relative infla­ success in the battle against inflation. But I tion performance, a continuation of a relatively would look upon lower rates with mixed feelings favorable U.S. current-account position, and if they promised more inflation and hence higher favorable assessments of the potential of the new interest rates for the future.”1 Those words are administration’s economic program. On the oth­ not mine, but those of a central bank colleague in er side of the Atlantic, balance of payments Europe. It seems to me they capture the essence deficits have been large, and a sense of greater of our policy problem. political change and uncertainty has prevailed. Of course, as I suggested earlier, there is A number of foreign observers, while not impatience for results. Monetary restraint is questioning the need for monetary restraint in painful, and it cuts unevenly, at home as well as the United States, have suggested that monetary abroad. Moreover, the burdens are not restricted policy should not carry so much of the burden of to the industrial economies; developing countries the stabilization effort either here or in their own are affected as well. Some are experiencing slow­ countries. As you know, I have often empha­ er growth in their exports because of slack sized the importance of fiscal restraint and regu­ demand in the industrial world. They are all latory and other policies, alongside firm restraint facing much stiffer borrowing terms in interna­ on the money supply, in a comprehensive pro­ tional markets than those to which they have gram to reduce U.S. inflation. At the same time, been accustomed. It may be of little comfort to we all have to recognize the difficulties in chang­ suggest that, in some cases, those terms may ing these policies dramatically and quickly. We well have been too easy in the past—internation­ are in fact making progress in reducing the strong ally as well as domestically nominal interest rates upward trend in government expenditures, and I have frequently been exceeded by actual infla­ would remind you that the administration has tion rates, encouraging excessive indebtedness emphasized that more will need to be done in and the postponement of needed adjustments. future years, particularly if we are to reap the What we would all like to see is a reasonable benefits of tax reduction in a context of reduced middle ground, and more stability and predict­ budget deficits. The closer the budget is to ability; we will not succeed unless we keep at it. balance, all else equal, the less pressure will be If we cannot promise instantaneous and easy felt in financial markets, the lower interest rates results—the answers do not lie in fine tuning will be, and the smaller the danger of abnormal fiscal or monetary policies—we can and must exchange rate pressures will be. But to expect a make the effort necessary to explain our policies, balanced budget overnight would be unreason­ formally and informally, in all the forums avail­ able, and I believe there is a growing understand­ able to us and to consider carefully the views of ing abroad, as at home, that fiscal policy cannot others. In that connection, I have long felt that easily be shifted in the short run. After all, most the economic summits can help assure that our other governments are grappling with fiscal prob­ mutual economic concerns are fully discussed lems at least as difficult as our own. and addressed at the highest level, and the suc­ Equally important to recognize is that no cess of those meetings over time can be mea­ “quick fixes” are available through monetary sured less by any concrete agreements than by policy to lower or fine tune interest rates. If the the degree of understanding reached about our Federal Reserve, for example, were to deviate mutual problems and purposes. from its policy of monetary restraint in an effort Certainly we must all avoid the temptation to to lower interest rates, any seeming short-run look inward during this difficult period. Intensifi­ relief would have to be balanced against the cation of trade restrictions would be damaging to substantial risk—for the United States and the rest of the world—of excessive credit growth, a further hardening of inflationary expectations, 1. Remarks by Karl Otto Pohl, President of the German and still greater interest rate pressures in the Federal Bank, before the Roundtable of the International future. Banking Institute in Cannes, June 12, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 613 the interest of all countries. Together we must You cannot expect us to be enthusiastic about seek effective ways to help developing countries the effects of your policies; we will all have cope with their own serious adjustment prob­ different opinions about just how you are going lems, not the least by maintaining and strength­ about it; but the fact is we have no agreed better ening our commitment to cooperation and dia­ alternative to offer yo|i. We can only wish you logue in the IMF and the World Bank. success. Most of all, it is crucial that we not fail in our I would only add that with success the present basic purpose of restoring stability and laying the international concerns will fade in memory. We base for sustained growth. One wise foreign would do no one a service, at home or abroad, if official, widely experienced in international af­ we were to take actions that would jeopardize fairs, recently put it to me roughly as follows: the prospects for that success. □ Statement by Paul A. Volcker, Chairman, Board economic policy decisions of some of our major of Governors of the Federal Reserve System, economic partners. The surprisingly strong before the Committee on Banking, Finance and growth in national output last winter has given Urban Affairs, U.S. House of Representatives, way to a much more sluggish picture. With July 21, 1981. continuing sizable increases in the labor force, unemployment has not declined from higher lev­ I am pleased to be here to review the conduct of els reached last year. The trend of both produc­ monetary policy and to report on the Federal tivity and savings remains low. Reserve’s objectives for the growth of money Amidst these difficulties, we must not lose and credit for this year as well as tentative sight of the fundamental point that so many of targets for 1982. You have already received our the accumulated distortions and pressures in the formal report, but I would like briefly to summa­ economy can be traced to our high and stubborn rize some points and amplify others. inflation. Moreover, turning back the inflation­ I do not need to belabor the point that the ary tide, as we can see, is not a simple, painless current economic situation is far from satisfac­ process, free from risks and strains of its own. tory. But we see some encouraging signs that we All that I would claim is that the risks of not are beginning to make progress against inflation. carrying through on the effort to restore price I realize that the evidence in the recent price data stability would be much greater. Dealing with is not, by itself, conclusive. However, I strongly inflation is essential to our future well-being as a believe that we now have the clear opportunity nation, arid the Federal Reserve means to do its and responsibility to achieve and sustain further part. progress on the price front. That progress will be As I noted, we have begun to see some tenta­ an essential ingredient in laying the base for a tive signs of a relaxation of price pressures. To much healthier economy in the years ahead. be sure, much of the recent improvement in The process inevitably requires time and pa­ various price indicators is accounted for by some tience. It would obviously be much more pleas­ reversal of “special” factors that drove the infla­ ant for me to appear before you today if both tion rate higher in 1979 and part of 1980. Instead unemployment and interest rates were lower. of the huge increases of the last two years, High interest rates undeniably place a heavy energy prices have stabilized and some oil prices burden on housing, the auto industry, small have even declined in the face of the recent business, and other sectors especially dependent production surpluses. Retail food prices have on credit. The thrift industry, in particular, has risen at rates of less than 1 percent this year, come under heavy stress as its costs of funds partly reflecting improved crop conditions, in exceed returns on fixed-rate assets acquired contrast to the pace of 10 lA percent in 1980. when interest rates were much lower. The high Commodity prices generally have been weak, as level of U.S. interest rates also has repercussions speculative forces have subsided under the pres­ internationally, complicating already difficult sure of the high cost of finance and more re­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

614 Federal Reserve Bulletin □ August 1981 strained price expectations. Despite sharply ris­ the several aggregates during the first half of the ing mortgage costs, the overall cost of year. These trends were significantly influenced homeownership as recorded has been rising less by the rapidity of market responses to regulatory rapidly. or structural changes, including the exceptional­ Some of these developments could prove tem­ ly rapid growth of negotiable order of withdrawal porary. Special factors and short-term improve­ (NOW) accounts nationwide and of money mar­ ments in the prices most sensitive to credit ket mutual funds. restraint alone cannot be counted on to sustain The basic measures of transaction balances— progress indefinitely. The deeply entrenched un­ “narrow money” or Ml—have risen relatively derlying rate of inflation is sustained by the slowly after adjusting for the effects of the one­ interaction of labor costs, productivity, and time shifts of funds into interest-bearing NOW prices. So far, only small and inconclusive signs accounts; those accounts became available na­ of a moderation in wage pressures have ap­ tionwide for the first time this year and have peared. Understandably, wages respond to high­ been marketed aggressively by banks and thrift er prices. But in the economy as a whole, labor institutions.1 To a degree that cannot be precise­ accounts for the bulk of all costs, and those rising ly measured, individuals and businesses, spurred costs in turn maintain the momentum of the by high interest rates, appear to have intensified inflationary process. Low productivity gains, cash-management practices designed to mini­ high taxes, and unnecessary regulatory burdens mize the use of traditional transaction balances, aggravate the situation. Moreover, to the extent tending to speed up the “velocity” relationship that firms and their workers are shielded from between Ml and gross national product during the competitive consequences of poor productiv­ early 1981. For example, to some limited degree, ity and aggressive price and wage policies, such needs for “Ml” transaction accounts may have attitudes are encouraged. been reduced by the growing popularity of mon­ These considerations help point to the wide ey market funds—not included in the definition range of policies necessary to support a sus­ of Ml—which can be used as a substitute for tained and effective effort against inflation. For­ demand deposits or NOW accounts. tunately, recognition of the need is widespread, At the same time, as shown in table 1, the and progress is being made in a number of broader aggregates, M2 and M3, which do in­ directions. But there can be no escaping the fact clude money market funds and some other close that monetary policy has a particularly crucial money substitutes, have been rising at or above role to play and, in current circumstances, has a the upper end of the target ranges. You may particularly heavy burden. recall that I suggested to the committee in pre­ An effective program to restore price stability senting the targets for 1981 that these broader requires reducing growth in money and credit aggregates might well be expected to rise toward over time to rates consistent with the growth of the upper part of their ranges. This expectation is output and employment at stable prices. That is reinforced by the further liberalization of interest the basic premise of our policies and is, I believe, ceilings of depository institutions by the Deposi­ consistent with the philosophy of the Humphrey- tory Institutions Deregulation Committee, a con­ Hawkins Act mandating our report to you today tinued growth of money market funds, and poon our monetary growth ranges. The periodic decisions we in the Federal Reserve reach about 1. These shifts sharply depressed recorded (that is, before those monetary “targets” and the implementa­ “shift adjustment”) Ml-A early in the year because the bulk of the NOW accounts reflected transfers from demand depos­ tion of policy are entirely within that broad its, which are included in Ml-A. Recorded Ml-B, which policy context; essentially, these decisions are includes NOW accounts, was “artificially” increased to the matters of how much or how fast—not of basic extent funds were shifted into NOW accounts from savings accounts or other assets not counted as transaction accounts, direction. but continued in part to serve the economic function of In approaching its midyear review of the mon­ savings. The Federal Reserve publishes estimates monthly of etary and credit targets within this framework, “shift-adjusted” data based on a variety of sources. As the transfers diminish, which appears to be happening, the the Federal Open Market Committee (FOMC) “adjusted” and “unadjusted” data will more closely coin­ was faced with rather sharply divergent trends in cide. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 615 1. Growth ranges and actual growth the FOMC does feel it acceptable that growth in in money and credit M2 and M3 be toward the upper part of their Percentages at annual rates ranges (6 to 9 percent and 6V2 to 9Vi percent respectively). Growth of bank credit, while often Growth ranges Actual growth Item fluctuating considerably from month to month, is 1980:4- 1980:4- 1980:4expected to remain within its specified range of 6 1981:4 1981:2 Latest data to 9 percent. Ml-B1 3Vi to 6 2.2 2.6 (July 8) M2............... 6 to 9 9.5 8.7 (June) In its tentative consideration of the targets for M3............... 6Vi to 9Vi 11.5 11.1 (June) 1982, the FOMC decided to plan for targeting Bank credit . 6 to 9 8.9 8.7 (June) and publishing a single Ml figure, equivalent in 1. Adjusted for shifts into NOW accounts. The range for recorded coverage to the present Ml-B. Assuming that Ml-B associated with the “shift adjusted” range for Ml-B at the start further “structural” shifts into NOW accounts of the year was 6 to 8!/2 percent. Actual growth in that measure from 1980:4 to 1981:2 was 6.8 percent at an annual rate. With growth in from nontransaction accounts will be by that NOW accounts larger than anticipated at the beginning of the year, the time minimal, “shift adjusted” targets and data divergence between the recorded and shift-adjusted data should be slightly greater than anticipated at the start of the year. should not be necessary. The tentative range for Ml in 1982 was set at 2Vi to 5Vi percent, the tentially the availability of tax-exempt, so-called midpoint of 4 percent is 3A percent below the all savers, certificates at depository institutions, midpoint of the closely comparable current range all of which could continue to result in some for “shift adjusted” Ml-B.2 diversion of funds from market outlets into M2 The tentative ranges for the broader aggre­ and M3. gates in 1982 were left unchanged at 6 to 9 In light of this situation, the FOMC considered percent and 6V2 to 9¥i percent for M2 and M3 the possibility of making small adjustments in the respectively. However, we anticipate actual 1981 ranges to account for the impact of institu­ growth closer to the midpoint in 1982, consistent tional change. However, it seems probable that with the desired reduction over time. the strongest impact of the introduction of NOW Setting precise targets has inevitably involved accounts and of adjustments of cash manage­ us in consideration of the effects of technological ment practices to high interest rates may be and regulatory change on monetary measures. behind us. Therefore, the FOMC did not feel that Those technical considerations should not ob­ changes in the growth ranges from 1981 were scure the basic thrust of our intentions—that is, justified. (All targets for 1981 and 1982 are shown to lower progressively effective money and cred­ in table 2.) However, given developments during the first 2. The tentative range for Ml in 1982 is substantially below half of the year and the need to avoid excessive the range of 6 to SV2 percent specified for recorded Ml-B growth in coming months, the FOMC agreed that growth for 1981. Recorded Ml-B data for 1981 were strongly growth in Ml-B near the lower end of its range affected, particularly during the early months of the year, by the “one-time” shifts into NOW accounts of savings and for the year as a whole (V/i to 6 percent, after other funds not included in the Ml series. These shifts are adjusting for NOW account shifts) would be diminishing, and the new tentative target for 1982 assumes acceptable and desirable, particularly should rel­ that they will be essentially completed by the end of this year. The slightly wider range specified allows for the possibility of atively strong growth in the other aggregates some residual shifting. That assumption will, of course, be continue. As indicated at the start of the year, reviewed at year-end. 2. Growth ranges and actual growth of monetary and credit aggregates Percent changes, fourth quarter to fourth quarter Bank Item Ml-A Ml-B M2 M3 credit Growth range for 1980 ................. V/i to 6 4 to 6'/2 6 to 9 6lA to 9Vi 6 to 9 Actual, 1980 .................................. 61/41 63/41 9.6 10.2 8.0 Growth range for 1981................. 3 to 5Vi2 3V2 to 62 6 to 9 61/! to 9^2 6 to 9 Growth range for 1982 ................. n.a. 21/2to 5,/23 6 to 9 6^2 to Wi 6 to 9 1. Adjusted for unanticipated transfers into automatic transfer 2. Adjusted for shifts into NOW accounts, service (ATS) and other similar accounts from other assets. 3. Assumes negligible impact of shifting into NOW accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

616 Federal Reserve Bulletin □ August 1981 it growth to amounts consistent with price stabil­ 3. Economic forecasts of the FOMC ity. We believe that the targets for both 1981 and 1982 and our operations are fully consistent with Actual Projected Item that objective. 1980 1981 1982 I have often emphasized that money supply Change from fourth data—like many other financial and economic quarter to fourth quarter, percent data—have some inherent instability in the short Nominal GNP................... 9.4 10 to IV/2 9Vi to 12*/4 run. The trend over time is what counts, both as Real GNP........................ -.3 1 to 3l/2 1 to 4 Implicit GNP deflator___ 9.8 7Vi to 9 61/2 to m a measure of monetary policy and in terms of Average level in fourth economic effect. For some months in the latter quarter Unemployment rate part of 1980, as you will recall, the rise in Ml was (percent)........................ 7.5 IVi to SVk 7 to m relatively rapid. Against that background the sluggish growth during most of the first half of 1981 was welcomed as a desirable offset by the factors such as the federal deficit. Differences of FOMC, confirming the trend toward a lower rate opinion about these matters help to account for of growth over time. At the same time, we have the relatively wide range of forecasts now char­ been conscious of the relative strength of M2 and acteristic for the period ahead, including those M3. Those measures include money market set forth by members of the FOMC. (Table 3 funds, short-term repurchase agreements, and shows the range of those projections.) certain U.S.-held Eurodollars, which to a greater I cannot fully resolve all those uncertainties in or lesser degree can serve as substitutes for Ml the outlook for you this morning. What does balances. With those components growing rela­ seem clear to me is that progress on inflation is a tively rapidly, our experience this year, to my prerequisite for lasting improvement in financial mind, reinforces the need to take account of all markets and for sustained, balanced growth. I available information in assessing the signifi­ can also emphasize the policies that seem to me cance of short-term movements in the monetary necessary to speed the transition to more equa­ aggregates and judging our policy posture. ble financial markets and to a more prosperous, More fundamentally, recent experience also productive economy generally. confirms that demands for money and credit First, as I have already indicated, curbing growing out of an expanding and inflating econo­ inflation will require persistent restraint on the my, pressing against a restrained supply, will be growth of money and credit. An attempt to reflected in strong pressures on interest rates and escape from high interest rates and strains on credit markets—pressures that in turn restrain financial markets and institutions by abandoning the growth in business activity. Some important that restraint would be self-defeating. By encour­ sectors of the economy are relatively impervious aging expectations of more inflation, such an for one reason or another to direct financial approach would soon stimulate even more bor­ restraint—energy, high technology, many serv­ rowing, further reduce incentives to save, and ices, and defense. Those sectors have been ultimately result in still higher interest rates and strong, sustaining forces in the economy general­ more economic difficulty. You and I know that, ly, and particularly in some geographic areas. after a decade and more of disappointment, The brunt of the restraint falls on other credit- skepticism and doubt persist about the ability of dependent sectors, and, as the dollar has sharply the nation to persevere in an anti-inflation pro­ appreciated, increasingly on exporters faced gram. I believe that skepticism is unwarranted, with a less favorable competitive position. but we must make that claim good by our ac­ Should interest rates decline in response to tions. Indeed, sustained monetary restraint, by weakness in the economy, many of those sectors encouraging greater confidence in the price out­ would likely, and rather promptly, rebound. look, will in time help bring interest rates lower. In a longer time frame, the outlook for interest Pressures on financial markets can also be rates will depend importantly on confidence that relieved by actions from other directions, entire­ inflation will be controlled, and on actual prog­ ly consistent with the anti-inflation effort and the ress toward greater price stability, as well as longer-run needs of the economy. Specifically, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 617 government deficits and credit programs absorb economic and inflation environment. Without a large fraction of our available limited savings. room for financing both high levels of inflation You are well aware that the administration and and strong growth, inflationary behavior by indi­ the Congress are hard at work on both sides of vidual firms can jeopardize markets, jobs, and that question. A difficult balancing of priorities is profits. required. Some forms of tax reduction are justi­ The lesson already seems apparent in some fied by the need to improve incentives and to key industries. Government can and should help reduce costs. But if we are to be convincing in directly by removing unnecessary regulatory our efforts to reduce the deficit at the same time, burdens and by reviewing laws and practices that the Congress will need to maintain and even to actually inhibit competitive pricing and add to intensify the courageous effort to reduce the costs. I believe it can also help indirectly by upward trend in spending. making clear that industries suffering from prob­ Monetary restraint implies that the growth in lems of their own making are not entitled to new the current value of our output—the nominal government protection. GNP—will also be restrained. To the extent that What this all adds up to is that we are at a restraint falls on prices, the more room will be critical point in the fight on inflation. available for the growth we want in real output. I We see the first stirrings of progress in the have already suggested that the recent improve­ recent data. ment in the price performance has some ele­ With enormous effort, the administration and ments that cannot be counted on to continue. the Congress are moving together to attain con­ But, along with the present slack in many labor trol of spending. We all know much remains to and product markets, the encouraging price data be done for future years, but the unparalleled certainly helps to create a more favorable setting effort bodes well. With a full measure of success, for changing the fundamentals of pricing policy the most urgently needed tax reduction can be and wage behavior in ways that can be sustained. responsibly reconciled with reduced deficits. A bulge in labor compensation early this year, We in the Federal Reserve are committed to and continuing large increases in unit labor costs, reducing growth in money and credit. have reflected in substantial part a “catch-up” in I believe there is a genuine urge to let the wages after last year’s large rise in the consumer competitive marketplace work and to review price index, as well as sizable increases in the government practices that unnecessarily add to minimum wage and social security taxes. These costs or limit competition. sources of pressure should be much diminished These policies can and will be effective. But if or absent in the period ahead. Intensified by the they are to work, they must be sustained with appreciation of the dollar, strong competitive conviction. Then, the apparent reluctance of incentives, domestically and internationally, also many to bet on reduced inflation—in financial exist for important industries to control costs. markets, in wage bargaining, in pricing, and in In these circumstances, a compelling logic, other economic decisions—will change. With from an overall economic view, exists in looking such change, the unwinding of the inflationary toward a sense of greater caution and restraint in process should be much easier. behavior of both wages and pricing. What is at In a real sense, the hardest part of the job faces issue is the extent to which that need will seem us now and in the months immediately ahead. equally compelling, viewed from the specific We must demonstrate our ability to carry shop floor or the individual executive suite. through on our good intentions—not just in mon­ These decisions are, of course, made continu­ etary policy but in fiscal and other areas as well. ously in the nonunion sector of the economy, but I have talked at some length this morning a crucially important round of union wage bar­ about the technical aspects of monetary policy gaining begins next January, potentially setting a and our numerical targets for the various mone­ pattern for several years ahead. tary aggregates. I have reemphasized why the That is one reason why we need to be clear and Federal Reserve must be, and is, determined to convincing in specifying our monetary and fiscal avoid excessive growth in money and credit. I policy intentions and their implications for the have stressed the key role other policies, includ­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

618 Federal Reserve Bulletin □ August 1981 ing budgetary restraint, must play if we are to falls on those least able to bear it. Interest rates make real progress toward price stability and are at extraordinary levels. relieve pressures on financial markets. We in the Federal Reserve are acutely aware That may all seem abstract and even single- of these problems. We do not restrain money and minded, given the pressing problems of the real credit for its own sake, or simply because infla­ world. tion is an evil in itself. For far too long, we have not had acceptable Financial discipline is a means to an end. It is economic performance. The average worker has an essential part—if only a part—of strengthen­ found his or her real income growing slowly, if at ing our economy so that productivity and living all. The overall unemployment rate, high as it is, standards can rise and worthwhile jobs can be does not reflect the intensity of the problem for found, not just for a few months, but for the some groups and areas, and the burden too often longer period ahead. □ Chairman Volcker gave a similar statement before the Senate Committee on Banking, Housing, and Urban Affairs, July 22, 1981. Statement by Nancy H. Teeters, Member, Board agricultural loans, permitting lenders to charge a of Governors of the Federal Reserve System, rate of up to 5 percent above the Federal Reserve before the Subcommittee on Financial Institu­ discount rate. The act also extended to certain tions of the Committee on Banking, Housing, financial institutions the authority, previously and Urban Affairs, U.S. Senate, July 21, 1981. granted only to national banks, to set rates on all types of loans of up to 1 percentage point above I am pleased to appear before the Subcommittee the discount rate. Any state, however, was al­ on Financial Institutions to present the Federal lowed to override certain of these preemptions. Reserve Board’s views on two bills—S. 963, a In many localities during the past few years, bill to authorize loans at interest rates in excess rising costs of funds have seriously eroded the of certain state usury ceilings, and S. 1406, the profitability of lending at rates permitted by state Credit Deregulation and Availability Act of 1981. law. Consequently, the supply of credit in areas S. 963 would temporarily allow any type of with restrictive rate ceilings has at times been lender to originate loans at a rate of up to 1 curtailed, especially to higher-risk borrowers, as percent above the Federal Reserve discount rate. loanable funds obtained at market rates have S. 1406 would permanently remove all state been channeled to other investments or to geo­ limits on interest rates on business, agricultural, graphic areas permitting a more competitive re­ and consumer credit, and also would preempt turn. These developments have underscored the state restrictions on transaction and access fees importance of allowing leeway for financial mar­ on consumer credit and payment services. Both kets to function without being hampered by bills would permit any state to establish its own artificial constraints on loan rates. With that ceilings by enacting overriding legislation. broad objective in mind, the Board has consis­ S. 963 and S. 1406 would thus broaden the tently supported the removal of impediments coverage of preemptive actions under the provi­ imposed by usury laws. This view, of course, has sions of the Depository Institutions Deregulation recently been reinforced by the prospect of the and Monetary Control Act of 1980. That act, as eventual removal of all controls on the rates that you recall, authorized the orderly phaseout and banks and thrift institutions can pay for deposits. ultimate elimination of interest rate ceilings on Although the Board favors termination of arti­ deposit accounts. In addition, it permanently ficial constraints on interest rates, we continue to preempted state usury laws affecting most first have reservations about endorsing preemption mortgage home loans, and temporarily preempt­ by the federal government of state usury laws. ed state usury laws governing most business and The Board would prefer that the counterproduc­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 619 tive effects of usury ceilings be addressed by That is especially the case in consumer lending, corrective action at the state level. However, if on which going rates at any one time typically the Congress chooses to act, we endorse the range widely depending on loan size, collateral inclusion of provisions that would allow individ­ (if any), and other determinants of credit risk. ual states to override the federal preemption, and Also of concern to the Board is that title II of that would defer to actions already taken in a S. 1406 would authorize and direct the Federal number of states to override the preemptive Reserve to publish official interpretations about provisions of the Monetary Control Act. Al­ the scope and the application of the consumer though S. 963 and S. 1406 both would permit credit preemption provisions of the act. The states to supersede congressional action, only Board recognizes that these rulings could help S. 1406 would recognize the binding character of resolve uncertainties about the relationship of overriding state actions that have been taken the federal law to state usury laws. Even so, it is since the Monetary Control Act was enacted but unclear whether the benefits accruing to the before the effective date of the new legislation. public from these interpretive rulings would out­ If the Congress should choose to impose a weigh the costs of the additional paperwork and federal usury limit rather than to remove interest the administrative apparatus that would be re­ rate controls altogether, the Board would strong­ quired. Moreover, the Board is reluctant to as­ ly advise against tying such a ceiling rate to the sume the role of interpreting these legal relation­ Federal Reserve discount rate, as would be pro­ ships and of resolving possible statutory vided by S. 963. It would be inappropriate, we conflicts. These are functions primarily of a feel, to employ a tool of monetary policy for a judicial character that, in the Board’s opinion, use that is not directly related to policy needs. should remain within the purview of the courts The Federal Reserve discount rate, as you whenever possible. They are far removed from know, is the rate of interest charged by Federal the Board’s primary responsibility for formula­ Reserve Banks on extensions of short-term cred­ tion of monetary policy. it to depository institutions that are subject to Another special feature of S. 1406 is the re­ significant restrictions on the amount and the moval of state controls on periodic fees associat­ frequency of their discount window borrowing. ed with credit card or debit card accounts as well Ordinarily, large institutions with access to na­ as transaction charges for credit cards or pay­ tional money markets are expected to repay ment mechanism services. As in the case of these loans the following business day; smaller interest rate ceilings, the Board favors the deter­ institutions that lack such broad market access mination of such fees and charges by market may require accommodation for somewhat long­ forces. The prohibition in some states of account er periods of time. In any case, the maturity of or transaction fees on credit card accounts has this special type of borrowing—largely to meet allowed customers who pay in full by the end of temporary requirements for funds—is ordinarily the billing cycle to use credit services without much shorter than is typical for business, agricul­ paying for them. Permitting transaction and ac­ tural, or consumer credit. The discount rate thus cess fees in such instances makes economic provides no sensitive indication of the course of sense because these charges enable creditors to interest rates on longer maturity credits. allocate costs in accordance with the use of Another reason why the discount rate is inap­ specific services. However, the Board believes propriate for indexing is that it is an administered that—when necessary—corrective action at the rate, which reflects general policy considerations state level would be the most desirable way to that are frequently complex. As a result, the address any counterproductive effects of limita­ discount rate deviates fairly often from other tions on these fees and charges. market interest rates, even those of comparable To summarize, the Board supports attempts to maturity. Tying the usury limit to the Federal remove ceilings that can constrain the price of Reserve discount rate would thus increase the business, agricultural, and consumer credit. It likelihood that a statutory ceiling might at times also supports efforts to eliminate controls on fees be below market interest rates, thus constraining that may be charged in connection with consum­ the availability of credit subject to the usury law. er credit accounts and payment services. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

620 Federal Reserve Bulletin □ August 1981 Board continues to feel, however, that state recent changes in the underlying determinants of action rather than federal law should prevail the cost and the availability of credit, appropriate whenever possible in governing pricing policies action at the state level has become all the more of these kinds. In view of the large and rapid imperative. □ Statement by John E. Ryan, Director, Division aminations and through the referral of possible of Banking Supervision and Regulation, Board violations of law to the designated agency with of Governors of the Federal Reserve System, primary responsibility for enforcing the relevant before the Subcommittee on General Oversight statute. and Renegotiation of the Committee on Banking, The Federal Reserve believes that the GAO Finance and Urban Affairs, U.S. House of Rep­ report represents a reasonably accurate and wellresentatives, July 23, 1981. balanced assessment of the major issues pertain­ ing to monitoring compliance and enforcement of I appreciate the opportunity to appear before this the Bank Secrecy Act. My testimony will focus subcommittee on behalf of the Federal Reserve on the performance of the federal banking agen­ to discuss the final report of the General Ac­ cies and, in particular, the Federal Reserve, in counting Office (GAO) on the Currency and monitoring compliance with the Bank Secrecy Foreign Transactions Reporting Act (Bank Se­ Act because this is the role that has been delegat­ crecy Act). The GAO report addresses the in­ ed to the agencies by the Department of the vestigative use made of bank secrecy reports by Treasury. The Department of the Treasury itself responsible law enforcement agencies and the has primary responsibility for implementation of value of the reports to these agencies, the level of the reporting requirements; for the review, eval­ compliance with the act’s reporting require­ uation, and follow-up on violations; and for ments, and the steps taken by federal bank overall enforcement of the act. regulatory agencies to monitor compliance by In order to improve our ability to monitor financial institutions. At the outset, let me say compliance with the Bank Secrecy Act and to that the Federal Reserve is fully committed to provide the Treasury with better information on taking and strengthening, whenever necessary, possible violations, new and more comprehen­ appropriate measures to ensure compliance with sive examination procedures, based on those in the Bank Secrecy Act and to providing accurate place at the Federal Reserve Bank of New York, and timely information for ultimate use by the were developed last year by staffs of all the responsible law enforcement agencies. As back­ federal regulatory agencies working under the ground to my discussion of issues raised by the aegis of the Federal Financial Institutions Ex­ GAO, I would like to describe briefly the scope amination Council. These revised procedures, of the Federal Reserve System’s supervisory which are appended to my testimony, were ini­ role for commercial banking organizations. tially field tested by the agencies late last year The Federal Reserve System has primary su­ and reviewed by staffs of both the Department of pervisory authority over approximately 1,000 the Treasury and the GAO, whose comments state member banks and 150 Edge corporations, resulted in some modifications to the proce­ domestic subsidiaries of banks that are licensed dures.1 to engage exclusively in international banking. The new examination procedures are com­ The System is charged by the Congress with prised of two separate phases or modules that are ensuring that these commercial banking organi­ progressively extensive in scope. This approach zations are operated in a safe and sound manner was designed to determine compliance in a man­ and for determining their compliance with U.S. ner that minimizes undue burden on the bank banking laws and regulations, including the Bank Secrecy Act. The Federal Reserve discharges its 1. The attachments to this statement are available on responsibilities for bank safety and soundness request from Publications Services, Board of Governors of and compliance largely through supervisory ex­ the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 621 while making maximum use of limited examiner the number of examiner days devoted to bank resources. In the first phase the examiner must secrecy, expanded training efforts in this area, establish that the financial institution has appro­ and improved the timeliness and detail associat­ priate internal operating and auditing standards ed with the information on possible violations to ensure compliance; determine that the institu­ that is provided to the Treasury on a quarterly tion has established a program of employee edu­ basis. In addition, the Federal Reserve is con­ cation with regard to the requirements of the tinuing to explore ways in which the study of regulations; and determine that operations per­ cash flows between member banks and Reserve sonnel are sufficiently knowledgeable about Banks can be effectively used in targeting the these requirements. This phase also contem­ bank secrecy examination procedures for those plates actual review of the reports submitted banks whose circumstances suggest a high vol­ (4789s and 4790s), the list of customers exempted ume of cash transactions. from reporting, and the volume of cash shipped The GAO report includes two recommenda­ to or received from the Federal Reserve Bank or tions whose objectives the Federal Reserve be­ a correspondent bank. If the financial institu­ lieves can be achieved in a more efficient manner tion’s performance is found deficient as a result than the report suggests. One recommendation of this evaluation, or if the institution has an calls for applying the more extensive secondunusually high volume of cash shipments to phase procedures to a sample of banks, which correspondent banks or Reserve Banks, the ex the GAO suggests might be a flat 10 percent of aminer proceeds to the more exhaustive second- banks examined each year. Another recommen­ phase procedures that involve extensive testing dation would require each Reserve Bank to des­ of actual transactions. ignate a regional or district supervisory examiner We believe that targeting the more intensive to review the results of bank secrecy examina­ procedures in this way will lessen the regulatory tions. Concerning the first suggestion, we believe burden imposed on those institutions in compli­ that reliance on deficiencies or suspected viola­ ance with the regulations, conserve limited ex­ tions uncovered by the first-phase review and on aminer resources, and yet still bring to light any the judgment and experience of Reserve Bank institutions that may have circumvented the rec­ supervisory officials to determine which institu­ ordkeeping and reporting requirements of these tions or geographic areas warrant utilization of regulations. An exception to this approach will the more comprehensive procedures is a more be made in connection with examinations of effective use of scarce examiner resources than selected institutions, particularly those in geo­ the random sample of 10 percent across-thegraphic areas with a reported high incidence of board suggested by the GAO. With respect to the drug-trafficking. For these examinations, the ex­ second recommendation, the Federal Reserve aminer will complete both phases as a matter of Banks have long had senior review examiners routine. The procedures I have outlined were responsible for reviewing examination reports implemented on a Systemwide basis in February for violations of law, including any comments of this year, and our experience to date is that the relative to compliance with the Bank Secrecy procedures are an effective tool in monitoring Act. We believe that these procedures and prac­ compliance with the Bank Secrecy Act. tices comport with the spirit and intent of the We are pleased to note that the GAO believes GAO suggestions while ensuring the most eco­ the new procedures will enhance our ability to nomic and cost-effective use of the System’s monitor compliance with the Bank Secrecy Act limited supervisory resources. and that, together with actions taken by the We agree with the GAO that over time compli­ Treasury Department, they will improve the ance problems with the Bank Secrecy Act have quality, timeliness, and usefulness of bank secre­ occurred. Some of these problems, as the GAO cy reports to the responsible law enforcement recognizes, were due to vague and imprecise investigators. In conjunction with the proce­ regulations that left room for wide-ranging inter­ dures, the Federal Reserve has taken a number pretations, for unclear or overly broad exemp­ of other actions to contribute to these objectives. tion provisions, or for the difficulties that a In particular, the Federal Reserve has increased number of commercial banks, particularly small­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

622 Federal Reserve Bulletin □ August 1981 er institutions, were having in devising compli­ represent a long-standing desire and commitment ance mechanisms and in understanding the re­ on the part of the Federal Reserve to cooperate quirements in light of the strains that were placed with the U.S. Treasury and the primary law on these resources by a surge of new regulations enforcement agencies in ensuring compliance and paperwork. Finally, some of the problems with the Bank Secrecy Act. were undoubtedly due to the need for more With respect to the compliance commitment of comprehensive procedures on the part of the the financial institutions themselves, we believe banking agencies to monitor and enforce compli­ that the overwhelming majority of senior man­ ance. agement personnel of the financial institutions Recent amendments by the Department of the under the supervision of the Federal Reserve Treasury to the implementing regulations that would not knowingly permit their institutions to tighten exemption procedures for the filing of be used as vehicles for laundering narcoticscurrency transactions reports have removed related monies, and that compliance with the many ambiguities. We agree with the GAO as­ requirements of the Currency and Foreign Trans­ sessment that these revisions should result in actions Reporting Act is generally good. Never­ more consistent interpretation and reporting. theless, in an effort to reinforce the compliance Moreover, we believe that these changes com­ commitment of financial institutions, the Federal bined with the new examination procedures will Reserve, on September 17, 1980, forwarded a facilitate more effective compliance monitoring. letter to the chief executive officers of the institu­ While we agree that the new examination tions under its supervision requesting a review of procedures are warranted and will improve our procedures to insure that employees were being ability to monitor compliance, we should note properly trained concerning the requirements of that the Federal Reserve’s past efforts to monitor the regulations and that adequate internal con­ compliance with the act evolved over time and trols were in place to insure compliance with the were expanded and adapted as our experience Bank Secrecy Act. with enforcement broadened. The original com­ In conclusion, I believe that the recent pliance checklist was worked out in consultation changes in the regulations, the steps being taken with the Departrtient of the Treasury following by the Department of the Treasury to make the issuance of the regulations in mid-1972. In greater use of the reported data, and the new March 1976, representatives from the federal examination procedures will improve the level of banking regulatory agencies and the Department compliance with the Bank Secrecy Act by finan­ of the Treasury designed more detailed examina­ cial institutions. I should like to note, however, tion guidelines, which were forwarded to the that compliance with the act and the monitoring examiners for implementation. In addition to and enforcement of it are costly both to the consulting with Treasury to develop these proce­ government and to the private financial institu­ dures, Federal Reserve examiners have respond­ tions. While the Federal Reserve remains com­ ed to requests front the Internal Revenue Service mitted to carrying out and strengthening when and the Justice Department for technical assist­ necessary its compliance efforts, we believe that ance in connection with investigations of possi­ such actions should be taken in the most costble violations of the Bank Secrecy Act by finan­ effective and efficient manner possible. Because cial institutions. A recent example of this was of the costs associated with compliance, the Operation Greenback in south Florida. More­ Federal Reserve concurs with the GAO sugges­ over, the Federal Reserve retnains committed to tion that the overall costs to the government and assisting law enforcement agencies when neces­ to the banks of complying with the act be studied sary and feasible in the conduct of special inves­ in relation to the value of the bank secrecy tigations of possible violations. We believe this reports to the primary law enforcement agencies record and the additional steps outlined above that use them. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 623 Statement by Lyle E. Gramley, Member, Board the interests of bringing inflation down. But the of Governors of the Federal Reserve System, more fundamental reason is that inflation accel­ before the Senate Forum, July 27, 1981. erated so much from the early 1960s until just recently, with periodic bursts into the double­ I want to begin by setting forth very briefly my digit range. Inflation permits borrowers to pay views on the present level of interest rates. There off loans with shrunken dollars. Since both debt­ is no doubt that interest rates are extremely high ors and creditors now understand this clearly, in our country. There is also no doubt that the lenders require—and borrowers are forced to effects of high interest rates have been painful pay—an “inflation premium” that compensates indeed for major sectors of the economy. for the erosion of purchasing power. Further­ The Commerce Department now estimates more, since the rate of inflation has been not only that real gross national product fell slightly in the high but also volatile, lenders appear to be re­ second quarter, and most private forecasters quiring a risk premium to protect against capital think that this mild decline may be extended into losses in the event of yet another upward wrench the third quarter. High interest rates appear to be to inflation and interest rates. the principal source of the slowdown. Still another reason why interest rates have Credit-sensitive sectors of the economy are had to rise to such high levels to ration a limited suffering as follows: supply of funds is that some kinds of credit • High mortgage rates have cut housing starts demands do not respond much to interest rates. by one-fourth from their level in late 1980. Many The demands of the Treasury to finance huge small homebuilders have gone out of business; deficits is the clearest case in point. Some private others wonder how long they can hang on. demands may also be rather insensitive to inter­ • Savings and loan associations, mutual sav­ est rates—for example, those of defense contrac­ ings banks, and some small commercial banks tors, or high technology industries, or firms are experiencing severe difficulties. Their depos­ investing to comply with governmental regula­ it flows have weakened markedly in recent tions. The burden of adjustment, therefore, is months; more importantly, their costs of depos­ shifted to others. its have gone up much faster than the return on Pumping up the money supply is not the way their assets. A few institutions have already to bring interest rates down. The experience of failed, and the potential for future failures is the past 15 years indicates that faster creation of mounting. money can bring only a temporary respite to • The auto industry has been hit very hard. interest rates. Time and again, when monetary Combined with large increases in car prices, the policy eased in the face of gathering financial escalating cost of loans has depressed auto sales. strains or economic slack, the additional money Furthermore, the high cost of financing inven­ created and the temporarily lower interest rates tories has been a crushing burden for auto deal­ ultimately served to fuel inflation. Expansive ers. fiscal policies added to the problem. Expecta­ • A large number of other small businesses, tions therefore deepened that government action particularly those with large inventories to fi­ would never be adequate or sustained long nance and heavy burdens of short-term debt, enough to get the job done. One by-product of have suffered serious losses and cash-flow prob­ such attitudes is that financial market partici­ lems. pants have become so sensitive that faster mon­ • The effects of high interest rates in the United ey growth may not lower interest rates even in States have been felt abroad—generating capital the short run. For example, on Friday a week outflows, sharply rising costs of debt services, ago, the weekly release of monetary data indicat­ and downward pressures on the currencies of ed a $7 billion rise in the money supply; interest many countries. rates immediately rose substantially, on the ex­ Why are interest rates so high? The proximate pectation that inflation-driven demands for mon­ reason is that demands for money and credit ey and credit would collide with Federal Reserve have been strong at a time when the Federal efforts to contain them. Reserve has been trying to limit money growth in In the long run, the only way to reduce interest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 Federal Reserve Bulletin □ August 1981 Inflation and interest rates in selected countries cies have been major contributors to worsening Percent inflation. The potential for a substantial improvement in Rate of inflation Interest rates Country in 19801 in 1980:42 the inflation rate is now at hand. The consumer price index during the first half of this year rose Switzerland.......................... 4.1 5.0 Germany.............................. 5.3 8.8 at around an 8V2 percent annual rate, compared Netherlands.......................... 6.7 9.3 Belgium................................ 7.4 12.5 with more than 12 percent in all of 1980. Food Japan ................................... 7.7 9.9 and energy costs have taken a beneficial turn in Canada.................................. 11.1 14.2 United States...................... 12.6 15.8 recent months; appreciation of the dollar in ex­ France .................................. 13.6 11.5 change markets has also helped, and idle capaci­ Sweden................................. 14.7 12.9 United Kingdom................. 15.3 13.8 ty and weak markets are damping price increases Italy..................................... 21.5 16.9 in housing and other areas. Unfortunately, how­ Mexico.................................. 28.9 26.1 Peru..................................... 59.8 35.0 ever, habits of wage and price setting change Brazil................................... 86.8 64.4 Argentina.............................. 88.7 95.3 slowly. In particular, wage increases are still far in excess of productivity gains, and have as yet 1. Inflation in 1980 is measured by the percentage change in the consumer price index from its average fourth-quarter level in 1979 to shown little evidence of moderating. The hard­ that for the fourth quarter of 1980. core inflation rate—that determined by rising 2. Interest rates are averages of the annualized rates on three-month treasury certificates except for Germany (rate on three-month depos­ unit costs of production—still seems to be in the its over DM 1 million), Japan (the Gensaki rate), France (three-month range of 9 to 10 percent. A fundamental break­ interbank rate), Peru (administered rate on three-month treasury certificates), and Argentina (rate on ninety-day commercial assets). through on the inflation front will not be Sources. Bulletins of the respective central banks and government achieved until wage increases moderate or pro­ statistical releases. ductivity improves. rates is to reduce inflation. That is what the Given the fact that the economy has slowed, Federal Reserve is trying to do, by reducing the and inflation has shown some improvement, a growth of money. basis exists for hope that interest rates may have The process of reducing inflation—and of already passed their peaks. But I cannot predict bringing interest rates down—can be speeded up with any confidence that interest rates will ease if the task is not left solely to monetary policy. substantially in the near term because it is by no We badly need to reduce government spending means certain that a substantial further decline in and federal deficits. We also need to be much inflation is just around the corner. I firmly be­ more attentive to the inflationary effects of other lieve, however, that staying with policies of governmental policies—environmental and safe­ monetary and fiscal restraint is essential to re­ ty regulations, import restrictions, price sup­ ducing inflation and, thus, to bringing an end to ports, wage supports, and the like. These poli­ high interest rates. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

625 Announcements Survey Pertaining to Consumer survey will provide a basis for Board staff to Regulations perform these analyses. Survey results will also enable the Board, the Congress, and the public to The Federal Reserve Board is conducting a sur­ become more aware of the costs of compliance vey of financial institutions to determine compli­ with consumer regulations. A summary and ance costs and benefits associated with the analysis of survey results is expected to be Board’s Regulations E (Electronic Fund Trans­ published by early 1982. fers), B (Equal Credit Opportunity), and Z (Truth A financial institution might have any of sever­ in Lending). Participants are needed for all size al reasons for taking part in the survey: a need to classes, geographical regions, and types of insti­ determine compliance costs for better internal tutions affected by these regulations.1 The one­ control; an ability to compare its cost and benefit time questionnaire survey, in which participation levels with those of other institutions; and a is voluntary, asks for information on initial costs desire to make regulatory agencies, the Con­ of Regulation E and for information on benefits gress, and the public more aware of the costs of and ongoing costs of all three regulations. compliance. Furthermore, the cost of participa­ Questions are designed to obtain data on incre­ tion can be small if respondents already have mental regulatory costs for the following func­ collected or analyzed some cost information. tional categories: administration, training, legal Participants may choose to provide information services, data processing systems changes, la­ on only one or two of the regulations, and they bor, postage, statements, disclosures, and prem­ need not provide detailed information for all cost ises and equipment. The survey questions also categories.3 afford institutions an opportunity to comment on the usefulness, the effectiveness, and the burden of specific regulatory provisions and to indicate Regulation C: Revision which disclosures and documentation they would continue to provide in the absence of The Federal Reserve Board has adopted a revi­ regulatory requirements. sion and simplification of its Regulation C (Home The survey will contribute to the Board’s Mortgage Disclosure), which implements the knowledge of the costs and benefits of consumer Home Mortgage Disclosure Act. protection regulations and will help it develop, HMDA requires financial institutions located evaluate, and improve regulation in this area. in standard metropolitan statistical areas Information obtained will help to improve the (SMSAs) to disclose publicly the location of their effectiveness of all Board regulations while re­ residential mortgage loans. Institutions with ducing compliance costs and the regulatory bur­ more than $10 million in assets are covered. den. Moreover, several recently enacted statutes The Board’s action, effective for the most part require regulatory cost studies.2 Data from the on July 31, 1981, followed amendment of the act 1. Financial institutions wishing to participate in the sur­ compliance costs and for periodic reviews of the cost of vey or desiring more information may call or write any of the regulation; and the Regulatory Flexibility Act requires an following Board staff members: Barbara R. Lowrey (202-452- economic analysis of the impact of regulations on small 3742), Frederick J. Schroeder (202-452-2584), and Fred B. business. Ruckdeschel (202-452-2579). 3. The Board and Federal Reserve Banks have already 2. For example, the Electronic Fund Transfer Act requires offered some financial institutions an opportunity to partici­ a study of the costs and benefits of Regulation E; the pate in the survey. Many institutions have voluntarily submit­ Financial Regulatory Simplification Act calls for minimizing ted compliance cost information to the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

626 Federal Reserve Bulletin □ August 1981 by the Congress and extension of its life by five loans and of FHA, FmHA (Farmers Home Ad­ years. The amendments to the act require the ministration), and VA loans, but not (as previ­ following: (1) compilation and disclosure of ously required) the sum of the conventional and mortgage loan data on a calendar (rather than other types of loans. fiscal) year basis; (2) itemization of data by 6. Avoidance of duplicate reporting of loans census tract and county (rather than by census by a branch and a head office of a lending tract and ZIP code); (3) the use of a standard institution located in the same SMSA. disclosure format to be prescribed by the Federal 7. Limitation of reports by branch offices to Reserve; (4) a system of central data repositories data on loans made on property in the SMSA in each SMSA; and (5) aggregation of mortgage where the branch is located. loan data to cover all institutions in each SMSA. The Board in November had amended Regula­ tion C to implement the changeover to calendar Regulation Y: Amendment year compilation of the data required by the act. The Board’s further revisions of the regulation The Federal Reserve Board has amended its implement the other changes in the act. Regulation Y (Bank Holding Companies and In addition, the Board has further revised the Change in Bank Control) to limit the insurance regulation—in keeping with the Board’s Regula­ agency activities authorized for bank holding tory Improvement Project for review and simpli­ companies. fication of all of its regulations—to simplify the The Board acted to conform its regulation to language and substance of Regulation C, to con­ court decisions. The Board deleted the authority centrate on disclosure requirements that are of bank holding companies to act as an agent for most useful and that can be provided at reason­ the sale of insurance sold as a matter of conve­ able cost, and to make the regulation more nience to the public. In addition, the Board concise. The revised regulation is nearly a third removed the authority under section 4(c)(8) of shorter than the existing regulation. the Bank Holding Company Act for bank holding The principal revisions of Regulation C follow: companies to act as agent for the sale of insur­ 1. Requirement that depository institutions re­ ance for themselves or for their subsidiaries. The port the location of property on which they make Board determined this latter activity to be per­ mortgage or home improvement loans, and relat­ missible under other provisions of the Bank ed data, to their primary federal regulators. The Holding Company Act. data will be forwarded to the Federal Reserve for Subject to approval of specific proposals, bank compilation and aggregation. To this end the holding companies may act as agent or broker for Board has prepared a standard reporting form, the sale of insurance (including property and which will be supplied to lenders in the near casualty insurance) directly related to an exten­ future. sion of credit, or the provision of financial ser­ 2. Requirement that covered institutions, vices, by a bank or a bank-related firm. effective September 30, 1981, display a notice in their lobby that information about the institu­ tion’s mortgage lending is available. The Board Adoption of Fee Schedule will furnish such a notice on request. 3. Permitting the use of either 1970 or 1980 The Federal Reserve Board has adopted a fee census tracts as a basis for reporting, pending full schedule, effective October 1, for securities and availability of 1980 census tract maps from the for noncash collection services provided by the Census Bureau Federal Reserve Banks. 4. Allowing most institutions that have been The Board acted under the Monetary Control exempt (on grounds of size or location) but which Act of 1980, which requires pricing of Federal lost their exemption to begin compiling data for Reserve services, and after review of comment the year after the year in which the exemption is received on proposals published in August 1980. lost (rather than for the year before the loss). The fee schedule has been revised to reflect 1981 5. Requirement of disclosures of conventional costs, and a private-sector adjustment factor Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 627 (PSAF) of 16 percent, rather than the 12 percent 1. Fee schedule, book-entry securities services, PSAF proposed last year. October 1, 19811 The specific schedule of fees is set forth in Item Cost (dollars) tables 1 and 2. Upon implementation of the fee schedule on October 1, 1981, the securities and Securities transfers Originated on-line (per transaction)...................................2.002 noncash collection services will be available to Originated off-line (per transaction)...................................8.503 Received off-line (per transaction).....................................6.50 all financial depository institutions.1 Account maintenance (per account per month)..................6.00 1. The $3.00 fee now assessed by the Federal Reserve Banks on behalf of the Treasury Department and various federal agencies for Safekeeping of Securities interdistrict transfers of securities will be discontinued effective October 1, 1981. 2. Fees (in dollars) at the Federal Reserve Bank of New York will The fees for account maintenance in definitive vary by time of day as follows: (paper) securities safekeeping are based on the Time of day Originated on-line volume of securities held (not on par value, as 9:00 a.m.-12:00 noon.............................................50 proposed) and the account maintenance fee cov­ 12:01 p.m.-2:00 p.m..............................................1.25 2:01 p.m.-close...................................................4.50 ers coupon clipping, conforming to practice in the private sector. These fees will be the same 3. Composed of the on-line origination fee of $2.00 plus the $6.50 off-line surcharge. throughout a Federal Reserve District except for the Chicago District, where they will differ for the territories served by the head office and the Detroit Branch, reflecting costs at those offices. Book-Entry Securities Service The San Francisco District’s definitive securities safekeeping services will be limited to certain This service involves recording of ownership of arrangements in accord with current practice. securities by computer rather than by issuance of definitive paper securities to buyers. The Board adopted a standard national average fee schedule 1. A description of Federal Reserve securities services is for all book-entry services: the basic on-line available on request from Publications Services, Board of transfer charge, account maintenance charges, Governors of the Federal Reserve System, Washington, D.C. 20551. and the off-line transfer surcharge. The off-line 2. Fee schedule: definitive securities safekeeping, purchase and sale, and noncash collection services, October 1, 1981 Dollars Noncash collection Definitive securities safekeeping (coupon, bond, or noncash item) Per receipt Purchase or sale Per transaction per month2 of government securities Per Federal Reserve District (per transaction1) envelope Per $1,000 with D d e r p a o w s a it l, or A s c w c i o t u ch nt ma A in cc te o n u a n n t ce pr o o r c i e t s e s m ed 3 cou s p h o ip n p v ed alue redemption3 Boston..................................... 12.50 12.50 2.65 12.00 1.80 1.00 New York................................ 35.50 13.50 5.35 23.00 1.40 1.00 Philadelphia.............................. 15.00 10.00 2.50 17.00 2.90 1.00 Cleveland.................................. 11.00 11.00 2.00 27.00 2.85 1.00 Richmond.................................. 20.00 12.50 1.50 27.00 2.00 1.00 Atlanta..................................... 20.00 10.00 2.50 1.40 1.00 Chicago..................................... 15.00 10.00 3.20 17.50 2.50 1.30 Detroit..................................... 11.00 10.00 1.75 17.50 2.50 1.30 St. Louis.................................. 16.00 16.00 1.45 2.80 .50 Minneapolis.............................. 13.50 11.50 1.70 5^50 2.25 .60 Kansas City.............................. 15.00 6.50 1.35 10.50 3.20 1.00 Dallas....................................... 12.00 5.00 1.40 26.50 2.25 1.00 San Francisco.......................... 22.00 6.85 1.00 1. Plus brokers’ fees, if any. 3. For bonds as well as other noncash items, add shipping expenses, 2. In the New York and Minneapolis Districts, the fee shown is per insurance fees, and fees assessed by other Federal Reserve Banks, if issue per month. any. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 Federal Reserve Bulletin □ August 1981 transfer surcharge replaces the proposed District tions. The Board also proposed a policy for fee. The Federal Reserve Bank of New York will access to its cash processing services. Comment continue to employ a time-of-day fee schedule was requested by September 25, 1981. for securities transfers originating in that Dis­ The Board has also requested comment on trict. proposed amendments to its Regulation Y (Bank Holding Companies and Change in Bank Con­ trol) concerning data processing. The Board re­ Purchase and Sale of quested comment by October 1, 1981. Government Securities and Noncash Collection Services Changes in Board Staff Fees for the purchase and sale of government securities have been revised to reflect 1981 costs The Board of Governors has announced the and the 16 percent PSAF. promotion of Robert E. Frazier from Assistant A fee will be charged by the collecting bank for Director to Associate Director in the Division of coupons clipped from securities held in safekeep­ Support Services, effective August 3, 1981. ing accounts and sent to another District Bank The Board has also announced the resigna­ for collection. tions of Raymond L. Teed, Associate Director, On average, the proposed 1981 fee schedule Division of Federal Reserve Bank Operations, for Federal Reserve securities and noncash col­ effective August 7, 1981, and Cornelius K. Hur­ lection services is 12 percent higher than that ley, Jr., Assistant General Counsel, effective proposed last August, a third of the increase September 4, 1981. being due to the 16 percent, rather than 12 percent, PSAF. System Membership: Admission of State Bank Proposed Actions The following bank was admitted to membership The Federal Reserve Board, acting under the in the Federal Reserve System during the period Monetary Control Act of 1980, has proposed for July 11 through August 10, 1981: public comment revised fee schedules for its transportation services in supplying currency Colorado and coin to the nation’s banks and thrift institu­ Julesburg.................. Sedgwick County Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

629 Legal Developments Amendment to Regulation Y which the holding company or its subsidiaries are otherwise engaged in business (or in an office adjacent Part 225—Bank Holding Companies and thereto) with respect to the following types of insur­ Change in Bank Control ance: (i) Any insurance that (A) is directly related to an Nonbank Activities extension of credit by a bank or bank-related firm of the kind described in this regulation, or (B) is directly The Board of Governors of the Federal Reserve Sys­ related to the provision of other financial services by a tem has adopted certain amendments to its Regulation bank or such a bank-related firm. Y (“Bank Holding Companies”) that would limit the (ii) Any insurance sold by a bank holding compa­ insurance agency activities authorized for bank hold­ ny or a nonbanking subsidiary in a community that has ing companies. The first amendment would delete a population not exceeding 5,000 (as shown by the last from the Board’s regulations the authority for bank preceding decennial census), provided the principal holding companies to act under section 4(c)(8) of th< place of banking business of the bank holding compa­ Bank Holding Company Act as agent for the sale ol ny is located in a community having a population not insurance for themselves and their subsidiaries. This exceeding 5,000. amendment reflects a court decision that acting as agent for the sale of insurance for the bank holding company and its nonbanking subsidiaries is not an Bank Holding Company and Bank Merger activity permissible under the Bank Holding Company Orders Issued by the Board of Governors Act. It also reflects the decision that such activities may be conducted pursuant to other provisions of the Orders Under Section 3 of Bank Holding Act. The second amendment deletes from the Board’s Company Act regulations the authority for bank holding companies to act as agent for insurance sold as a matter of Callaway Security Banks, Inc., convenience to the public. Fulton, Missouri These amendments are required in order to conform the Board’s regulations to an opinion of the United Order Denying Formation of Multi-bank Holding States Court of Appeals for the Fifth Circuit. That Company opinion found that the sale by bank holding companies of certain of the types of insurance described in Callaway Security Banks, Inc., Fulton, Missouri, has connection with the first amendment was not an applied for the Board’s approval under section 3(a)(1) activity in which bank holding companies legally may of the Bank Holding Company Act (12 U.S.C. engage pursuant to section 225.4(a)(9)(i) of the Board’s § 1842(a)(1)) to become a bank holding company by Regulation Y. Further, the Court’s opinion found that acquiring 80 percent or more of the voting shares of the part of the Board’s regulation relating to the sale of The Callaway Bank, Fulton, Missouri (“Callaway “convenience” insurance also authorized the sale of Bank”), and 80 percent or more of the voting shares of insurance beyond the scope of the provisions of sec­ Security Bank of Auxvasse, Auxvasse, Missouri (“Se­ tion 4(c)(8) of the Bank Holding Company Act and curity Bank”). therefore is impermissible. Notice of the application, affording opportunity for Effective September 1, 1981, Regulation Y (12 CFR interested persons to submit comments and views, has Part 225) is amended as follows: been given in accordance with section 3(b) of the act. The time for filing comments and views has expired Section 225.4—Nonbanking Activities and the Board has considered the application and all comments received in light of the factors set forth in Digitized for FR (a A ) S * E R * * section 3(c) of the act (12 U.S.C. § 1842(c)). http://fraser.stloui(s9f)e dA.ocrtgin/ g as insurance agent or broker in offices at Applicant is a nonoperating corporation formed for Federal Reserve Bank of St. Louis

630 Federal Reserve Bulletin □ August 1981 the purpose of becoming a multi-bank holding compa­ that the relevant banking market should include the ny through the acquisition of Callaway Bank with Jefferson City metropolitan area in addition to $40.5 million in deposits and Security Bank with $9.3 Callaway County. This conclusion was based upon a million in deposits.1 Upon consummation of the pro­ random telephone survey of Callaway County resi­ posed acquisitions, Applicant would become the 29th dents which demonstrated, among other less signifi­ largest banking organization in Missouri, controlling cant results, that 17.8 percent of those surveyed 0.2 percent of the total commercial bank deposits in commuted to Jefferson City for work and 9.5 percent the state. had checking accounts in Jefferson City.4 The Board Both Callaway Bank and Security Bank are located believes that this evidence is insufficient to support in Callaway County, a predominantly rural, agricultur­ Applicant’s market definition. al county in central Missouri, which approximates the The Supreme Court has articulated a number of relevant banking market as defined by the Board.2 factors to be considered in determining a geographic Callaway Bank is the largest of five commercial banks banking market. See, United States v. Philadelphia in the market, controlling 53.1 percent of the total National Bank, 374 U.S. 321 (1963); United States v. commercial bank deposits in the market, while Securi­ Phillipsburg National Bank & Trust Co., 399 U.S. 350 ty Bank is the third largest bank controlling 12.2 (1970); See also Mid-Nebraska Bancshares v. Board percent of deposits in the market. There are no banks of Governors, 627 F.2d 266 (D.C. Cir. 1980). These located between Callaway Bank and Security Bank, cases indicate that the competitive effects of a pro­ and the only banking office located between them is a posed merger or acquisition should be judged in a facility of Security Bank. Moreover, two of the three localized market in which banks offer their services market competitors which would remain after consum­ and to which local customers can practicably turn for mation of this proposal, are located near the southern alternatives. The Supreme Court has stated in this border of the market, approximately 17 road miles regard that “the proper question is not where the from Callaway Bank and 30 road miles from Security parties to the merger do business or even where they Bank’s main office. Upon consummation of the sub­ compete, but where, within the area of competitive ject proposal, Applicant would be the largest banking overlap, the effect of the merger on competition will be organization in the market, controlling 65.3 percent of direct and immediate.” (United States v. Philadelphia the total cominercial bank deposits. Furthermore, the National Bank, supra at 357). In determining what this number of banking organizations operating in the area is, the Supreme Court sought “to delineate the market would be reduced to four, with Applicant’s areas in which bank customers that are neither very market share being approximately three times the large or very small find it practical to do their bank percentage held by the next largest organization. business, ...” United States v. Philadelphia Nation­ Based upon the above facts of record, approval of the al Bank, supra at 359. proposed transaction would result in the elimination of After consideration of a number of the relevant substantial existing competition, the elimination of a factors outlined by the Supreme Court, the Board has vehicle of entry for holding companies not represented determined that the evidence of record, as summain the relevant market, and would increase the already high level of concentration of banking resources within the relevant market. Applicant, however, disagrees with the Board’s contention, Applicant gathered additional information and revised its market definition. Based upon that information Applicant argued that definition of the relevant geographic market and, in Callaway Bank and Security Bank operate in separate, but adjacent, this connection, has proposed several alternative mar­ banking markets divided by Interstate 70. Thus, Applicant defined Security Bank’s market to include Audrain County and northern ket definitions.3 Applicant’s most recent contention is Callaway County (including Kingdom City where the branch of Security Bank is located). The market of Callaway Bank was defined by Applicant to include the remaining portion of Callaway County plus the metropolitan areas of Columbia and Jefferson City. Finally, Applicant submitted evidence that it claims supports a market defini­ 1. All banking data are as of June 30, 1980, unless otherwise tion which placed Callaway Bank and Security Bank in the same indicated. banking market, a relatively large geographic area encompassing 2. The Board notes that in connection with an application in 1976 Callaway County and the Jefferson City metropolitan area. by Central Bancompany, Jefferson City, Missouri, to acquire First 4. A closer examination of the data indicates that most of those National Bank of Mexico, Mexico, Missouri, the Board defined the commuting into Jefferson City reside in the extreme southern portion Mexico banking market to include Audrain County plus the town of of Callaway County. Thus, Applicant’s evidence would tend to lend Auxvasse. A careful analysis of all the facts of record has led the support to the inclusion of that small portion of Callaway County in Board to conclude that Auxvasse should now be included in the the Jefferson City market, rather than expanding the Callaway market Callaway County banking market, not in the Mexico banking market. to include Jefferson City. Based upon this market redefinition, it 3. Applicant first contended that Callaway Bank and Security Bank appears the market shares of the two banks to be acquired would be were located in a five-county market area. However, in response to a even higher than those used by the Board for market analysis request that Applicant submit market information supporting that purposes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 631 rized below, supports the conclusion that the rural proposal on competition in the relevant market would areas of Callaway County constitute a local banking be substantially adverse.7 market separate froip the metropolitan areas of Co­ The financial and managerial resources and future lumbia and Jefferson City. First, Applicant’s market prospects of Applicant, Callaway Bank and Security definition conflicts witfi the Board’s past market defi­ Bank are satisfactory. Applicant contends that con­ nitions that were based upon surveys and commuting summation of the subject proposal would provide data.5 Second, the areas immediately surrounding management continuity and maintenance of local con­ both Columbia and Jefferson City are included in their trol of Security Bank. However, there is no evidence respective Rand-McNally (“RMA”) definitions, and of record to suggest that this issue cannot be resolved none of the towns in Callaway County is included in absent consummation of this proposal. Thus, consid­ either of these RMAs.6 Third, Missouri banking law erations relating to banking factors are consistent restricts banking offices of a bank to county bound­ with, but lend no weight towards approval. Upon aries. Finally, the data on service area overlap for consummation of this proposal Applicant plans to banks generally in the relevant geographic areas, and initiate and expand services offered by Security Bank, for Callaway Bank and Security Bank specifically, including extending Friday evening hours, initiating a support the findings that neither the service areas of student loan program, and automatic transfer ac­ banks in Columbia nor in Jefferson City significantly counts, and providing various trust, loan and interna­ overlap with service areas of Callaway County banks tional services. Accordingly, the Board finds that while those of Callaway County banks do overlap with while considerations relating to convenience and each other, thus indicating that the towns within needs of the community to be served lend some weight Callaway County constitute a separate local banking toward approval, they do not outweigh the substantial­ market. On balance, the Board is persuaded that there ly adverse competitive effects that would result from is no significant competition between the banks in the subject proposal. Callaway County on the one hand, and Jefferson City Under section 3(c) of the Bank Holding Company or Columbia on the other, and accordingly, the Board Act, the Board is precluded from approving any pro­ concludes that the evidence supporting the extension posed acquisition of a bank that in any part of the of the Callaway County banking market to include country may substantially lessen competition or tend either of those two metropolitan areas is not sufficient to create a monopoly or be in restraint of trade in any to warrant the Board finding that the relevant banking banking market, unless the Board finds that such anti­ market of Callaway County is other than Callaway competitive effects are clearly outweighed by the County itself. convenience and needs of the community to be served. Based upon the foregoing and all the information of Thus, on the basis of the foregoing and other consider­ record relevant to the market definition, the Board ations reflected in the record, the Board’s judgment is believes that the appropriate geographic market for that consummation of the proposed transaction would assessing the competitive effects of this proposal is the not be in the public interest and the application should Callaway County banking market, approximated by be, and hereby is denied. Callaway County. Accordingly, the Board finds on the By Order of the Board of Governors, effective basis of all the facts of record that the effects of this July 2, 1981. Voting for this action: Chairman Volcker and Governors Schultz, Teeters, Rice, and Gramley. Absent and not voting: Governors Wallich and Partee. (Signed) William W. Wiles, 5. The Jefferson City banking market is defined by the Board to be approximated by Cole County. The Columbia banking market is [seal] Secretary of the Board. defined as Boone County which is coterminus with the Columbia SMSA. 6. RMA definitions are based upon criteria of metropolitan charac­ 7. Applicant also argues that the presence of thrifts in the relevant ter and integration and exclude outlying portions with only scattered market must be assessed in analyzing the competitive impact of the suburban development, high proportions of agricultural employment, proposal. Even if all deposits of thrifts in the market were included in or low population density. Because RMAs closely approximate eco­ deposit data for the competitive analysis, the proposal would involve nomic development and commercial patterns, they have served as the combination of Callaway Bank, the largest organization in the useful approximations for banking markets. It should be noted that market with 34.4 percent of market deposits, and Security Bank, the Boone County, which includes the city of Columbia, is also con­ fifth largest organization in the market with 7.9 percent of market sidered to be a Standard Metropolitan Service Area (“SMSA”). If deposits, resulting in a combined market share of 42.3 percent. contiguous counties meet certain criteria of metropolitan character (Deposit data for thrifts are as of March 31, 1979). These market and integration, they are also included within an SMSA. Although shares, viewed in light of the limited commercial powers of thrifts, Callaway County is contiguous to Boone County, it is not included in would not alter the determination that the competitive effects of the the SMSA of Boone County. proposal would be substantially adverse. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 Federal Reserve Bulletin □ August 1981 Detroitbank Corporation, the Lansing banking market,4 and the St. Joseph- Detroit, Michigan Branch Counties banking market.5 With the exception of the Kalamazoo-Battle Creek banking market, Bank Order Approving Acquisition of Bank does not have a significant presence in any other market in which Bank competes and the effects of Detroitbank Corporation, Detroit, Michigan, a bank consummation of the transaction on existing competi­ holding company within the meaning of the Bank tion in these markets would not be significant. Be­ Holding Company Act, has applied for the Board’s cause Michigan branching laws would permit a subsid­ approval under section 3(a)(3) of the Bank Holding iary bank of Applicant to branch into the Barry County Company Act, 12 U.S.C. § 1842(a)(3), to acquire 100 and St. Joseph-Branch Counties banking markets, percent of the voting shares of the successor by consummation of this proposal would result in the merger to SNB Bank and Trust (“Bank”), Battle elimination of some potential competition. Creek, Michigan. The bank into which Bank is to be Bank is the fifth largest of 13 banking organizations merged has no significance except as a means to in the Kalamazoo-Battle Creek banking market and facilitate the acquisition of the voting shares of Bank. controls about 7.0 percent of the total deposits in Accordingly, the proposed acquisition of shares of the commercial banks in the market. Applicant is the successor organization is treated herein as the pro­ market’s fourth largest banking organization through posed acquisition of shares of Bank. its control of Industrial State Bank and Trust (“ISB”), Notice of the application affording opportunity for Kalamazoo, Michigan (deposits of $138.6 million), interested persons to submit comments and views has holding 10.1 percent of the total deposits in commer­ been given in accordance with section 3(b) of the act cial banks in the market. Consummation of the propos­ (12 U.S.C. § 1842(b)). The time for filing comments al would increase Applicant’s share of market deposits and views has expired, and all comments received, to 17.1 percent but its rank within the market would including those of the Federal Deposit Insurance Cor­ remain unchanged. In light of these and other facts of poration and the Michigan Financial Institutions Bu­ record, the Board finds that consummation of the reau recommending approval of this application, have proposal would result in eliminating existing competi­ been considered in light of the factors set forth in tion between Bank and ISB, would remove an inde­ section 3(c) of the act (12 U.S.C. § 1842(c)). pendent competitor from the Kalamazoo-Battle Creek Applicant, the third largest banking organization in market, and would increase the concentration of bank­ Michigan, controls 10 banks with aggregate deposits of ing resources in that market. $3.8 billion,1 representing about 9.5 percent of total In view of the foregoing discussion and based on the deposits held by commercial banks in the state. Bank facts of record, the Board concludes that the competi­ is the 61st largest banking organization in the state tive effects of the proposal are substantially adverse. with deposits of $107 million, representing about 0.3 Under the standards set forth in section 3(c) of the percent of deposits in commercial banks in Michigan. Bank Holding Company Act, it is clear that the Board Acquisition of Bank would increase Applicant’s share may not approve the subject proposal unless it finds of statewide deposits to 9.8 percent and would not that “the anticompetitive effects of the proposed alter Applicant’s ranking in the state. Thus, consum­ transaction are clearly outweighed in the public inter­ mation of the transaction would not result in a signifi­ est by the probable effect of the transaction in meeting cant increase in the concentration of banking re­ the convenience and needs qf the community to be sources in Michigan. served.” In assessing such considerations in light of Bank operates 10 branch offices in four banking the facts surrounding this proposal, the Board finds markets in Michigan: the Barry County banking mar­ that the anticompetitive effects are clearly outweighed ket,2 the Kalamazoo-Battle Creek banking market,3 in the public interest. The financial and managerial resources and future prospects of Applicant and its subsidiaries are considered satisfactory and consistent with approval of this application. Bank’s financial and 1. All banking data are as of June 30, 1980. 2. The Barry County banking market is approximated by Barry County excluding the northwestern portion and southern tier of townships. 3. The Kalamazoo-Battle Creek banking market is approximated 4. The Lansing banking market is approximated by Eaton, Ingham by all of Kalamazoo County, the western three tiers of townships in and Clinton Counties, the southeastern corner of Ionia County, and Calhoun County, the northwestern portion of St. Joseph County, the the northwestern corner of Livingston County. two eastern tiers of townships in Van Buren County, the two 5. The St. Joseph-Branch Counties banking market is approximat­ southwestern townships in Allegan County, and the southern tier of ed by all of Branch County and all of St. Joseph County except for the townships in Barry County. northwestern corner which includes Three Rivers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 633 managerial resources, absent consummation of the The Wyoming National Corporation, instant proposal, are less than satisfactory, and its Casper, Wyoming future prospects are uncertain. Bank has suffered losses in its operations and, lacking the internal capa­ First Bankshares of Wyoming, bility of reversing the adverse trend, Bank apparently Cheyenne, Wyoming will be unable to continue as a viable organization in serving the public. Under this proposal, Applicant has Order Approving Merger of Bank Holding Companies agreed to inject capital of $1.5 million and to provide significant managerial assistance to Bank. These ac­ The Wyoming National Corporation (“WNC”), Cas­ tions would assure Bank’s continued viability and the per, Wyoming, a bank holding company within the availability of Bank as a source of banking services in meaning of the Bank Holding Company Act, has the Kalamazoo-Battle Creek banking market. applied for the Board’s approval under section 3(a)(5) In addition to the fact that affiliation with Applicant of the act (12 U.S.C. § 1842(a)(5)) to acquire 100 would strengthen Bank’s condition, consummation of percent of First Bankshares of Wyoming (“Bank­ the proposal would enable Bank to remain a viable shares”), Cheyenne, Wyoming, an unaffiliated bank competitive alternative in servicing Bank’s commer­ holding company. cial customers as well as the convenience and needs of Notice of the application, affording opportunity for the Battle Creek community. In this respect, Appli­ interested persons to submit comments and views, has cant intends to expand the commercial services of been given in accordance with section 3(b) of the act. Bank, to make lease financing available through a The time for filing comments and views has expired, subsidiary of Applicant, to pay the maximum allowa­ and the Board has considered the application and all ble rates on savings deposits, and to decrease service comments received in light of the factors set forth in charges on NOW accounts. section 3(c) of the act (12 U.S.C. § 1842(c)). Although the Board would prefer a less anticompeti­ WNC, the third largest banking organization in tive acquisition as a means for assuring the continua­ Wyoming, controls four subsidiary banks with aggre­ tion of Bank as a vehicle for serving the convenience gate deposits of $252.9 million, representing 9.2 per­ and needs of the public, such an alternative does not cent of the total deposits in commercial banks in appear to be readily available. Therefore, the Board Wyoming.1 Bankshares, the fourth largest banking views the improved financial prospects of Bank and organization in Wyoming, controls three subsidiaries the convenience and needs considerations as lending with aggregate deposits of $118.7 million, representing significant weight toward approval of the application, 4.3 percent of the total commercial bank deposits in and as clearly outweighing the substantially adverse the state. Upon consummation of the proposed acqui­ competitive effects that would result from consumma­ sition, WNC will become the second largest banking tion of the proposal. Accordingly, the Board’s judg­ organization in Wyoming, controlling seven subsidiary ment is that consummation of the proposal would be in banks with aggregate deposits of $371.6 million, repre­ the public interest and that the application should be senting 13.5 percent of total statewide commercial approved. bank deposits. Furthermore, consummation of this On the basis of record, the application is approved proposal would increase the four-firm statewide con­ for the reasons summarized above. The transaction centration ratio from 42.9 percent to 46.7 percent. shall not be made before the thirtieth calendar day Although the increase in statewide concentration, and following the effective date of this Order or later than elimination of one of the state’s six multi-bank holding three months after the effective date of this Order, companies are regarded as adverse competitive factors unless such period is extended for good cause by the particularly because there are so few banking organi­ Board, or by the Federal Reserve Bank of Chicago, zations of even moderate size in Wyoming,2 given the pursuant to delegated authority. structure of banking in Wyoming, it does not appear By Order of the Board of Governors, effective that approval of this application would have any July 7, 1981. significantly adverse effects upon the concentration of banking resources in the state. Voting for this action: Chairman Volcker and Governors Schultz, Wallich, Partee, Rice, and Gramley. Voting against this action: Governor Teeters. 1. All banking data are as of June 30, 1980. 2. There are only five banking organizations in Wyoming having more than $100 million in aggregate deposits, and only 10 banking (Signed) William W. Wiles, organizations in the state having more than $50 million in aggregate [seal] Secretary of the Board. deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

634 Federal Reserve Bulletin □ August 1981 WNC currently owns banks in the Casper, Campbell represented is not significant and thus would result in and Carbon banking markets, while Bankshares owns only a slightly adverse effect upon potential competi­ banks in the Laramie and Platte banking markets.3 tion. WNC is the largest banking organization in the Casper The Board has also considered Bankshares’ poten­ market, with two banks having $224.8 million in aggre­ tial entry into the Casper, Campbell and Carbon gate deposits, representing 37.1 percent of market markets, and found that each of these markets are deposits. WNC also owns the third largest bank in the highly concentrated, with three-firm concentration ra­ Campbell market, controlling $21.6 million in deposits, tios of 84.8, 97.4 and 94.2 percent, respectively. Fur­ representing 12.1 percent of market deposits; and the thermore, all three of these markets appear to be fourth largest bank in the Carbon market, controlling highly attractive for de novo or foothold entry, and $6.5 million in deposits, representing 5.8 percent of Bankshares is one of only two large multibank firms market deposits. Bankshares is the second largest not represented in the Casper market, and one of only banking organization in the Laramie market, with two three multibank firms able to expand into but not banks having $90.8 million in aggregate deposits, rep­ represented in the Campbell and Carbon markets. resenting 31.2 percent of market deposits. Bankshares However, Bankshares itself has shown little inclina­ also owns the largest bank in the Platte market, tion to expand, particularly in the areas of the state controlling $27.9 million in deposits, representing 45.9 where WNC is represented. Moreover, Bankshares percent of market deposits. Consummation of the appears to lack both the financial and managerial proposed merger would eliminate no significant exist­ resources necessary for significant expansion. Ac­ ing competition since none of W NC’s four subsidiary cordingly, the Board concludes that the likelihood of banks operates in the same markets as Bankshares’ Bankshares’ entry into the markets where WNC is three subsidiary banks.4 represented is not significant and thus would likewise In view of the fact that both WNC and Bankshares result in only a slightly adverse effect upon potential are for Wyoming relatively large banking organiza­ competition. tions, ranking as third and fourth largest in the state, Based upon the above discussion and all the facts of each is regarded as a potential entrant into the markets record, including the structure and nature of banking where the other is currently operating. Thus, the in Wyoming, the future needs for banking services in Board has examined the effects of the proposal on the state, the absolute size of WNC and Bankshares, potential competition with respect to each of the and the nature of competition and size of the relevant markets in which WNC and Bankshares are represent­ markets involved, the Board’s opinion is that the ed, including the Casper, Campbell, Carbon, Laramie overall competitive effects of this proposal are not and Platte banking markets. significantly adverse. In considering W NC’s potential entry into the Lara­ The financial and managerial resources of WNC, mie and Platte banking markets, the Board has found Bankshares and their respective subsidiaries are re­ both markets to be highly concentrated with three-firm garded as satisfactory and future prospects of these concentration ratios of 91.0 and 93.4 percent, respec­ organizations appear favorable. The merger of WNC tively. In addition, WNC is one of only two large and Bankshares would combine the financial and multibank firms able to expand into but not represent­ managerial resources of both, thus strengthening these ed in the Laramie market, and one of only three firms factors with respect to the resulting organization. In able to expand into but not represented in the Platte addition, following consummation of this proposal, the market. However, based upon all the facts of record, combined organization would have increased access to neither of these markets appears to be particularly national capital markets, thus allowing more aggres­ attractive for de novo or foothold entry. Moreover, sive, expansionary policies. The combined organiza­ WNC’s past acquisition history indicates it is unlikely tion would also be more capable of meeting the that WNC would enter into either the Laramie or expanding needs of businesses in Wyoming. Thus, the Platte markets by foothold or on a de novo basis. Board concludes that considerations relating to the Accordingly, the Board concludes that the likelihood positive benefits resulting from the proposed merger of WNC’s entry into the markets where Bankshares is lend sufficient weight toward approval to outweigh any adverse competitive effects associated with this pro­ posal. Based upon the foregoing and other considerations 3. The Casper banking market is approximated by all of Natrona County and the adjacent portion of Converse County; the Campbell, reflected in the record, the Board’s judgment is that Carbon, Laramie, and Platte banking markets are each approximated the proposed acquisition is in the public interest and by the Wyoming county of the same name. 4. WNC’s nearest banking office to a Bankshares banking office is that the application should be approved. 109 miles. On the basis of the record, the application is ap­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 635 proved for the reasons summarized above. The trans­ vuth Hayehudim B.M. (“OHH”), and Bank Leumi leaction shall not be made before the thirtieth calendar Israel B.M. (“Bank Leumi”), all of Tel Aviv, Israel day following the effective date of this Order or later (collectively referred to as “Applicants”),1 bank hold­ than three months after the effective date of this ing companies within the meaning of the Bank Holding Order, unless such period is extended for good cause Company Act have requested the Board’s approval by the Board, or by the Federal Reserve Bank of under section 4(c)(8) of the Bank Holding Company Kansas City, pursuant to delegated authority. Act (12 U.S.C. § 1843(c)(8)), to engage through their By order of the Board of Governors, effective subsidiary, Leumi Securities Corporation (“Leumi July 8, 1981. Securities”), New York, New York, in certain securities-related activities. Voting for this action: Chairman Volcker and Governors Applicants have applied for approval for Leumi Schultz, Teeters, Rice, and Gramley. Absent and not voting: Securities to engage in the following activities: (1) Governors Wallich and Partee. executing unsolicited purchases and sales of securities as agent solely upon the order of and for the account of (Signed) W illiam W. W iles, customers; (2) providing custodial services for such Secretary of the Board. [seal] securities;2 (3) acting as managing agent for the securi­ ties of customers;3 and (4) buying and selling gold and Concurring Statement of Governor Teeters silver coin and bullion for the account of others. The activity of acting as managing agent for customers with This proposal involves the acquisition of the fourth respect to securities is among the activities that the largest banking organization by the third largest bank­ Board has designated in Regulation Y as being closely ing organization in Wyoming. As noted in the Board’s related to banking and thus permissible for bank Order, Wyoming is a concentrated state in terms of holding companies, (12 C.F.R. § 225.4(a)(5)(iii)). The deposits held by banking organizations and consum­ remaining activities are not among the activities listed mation of this proposal will further increase that in Regulation Y as permissible for a bank holding concentration. However, in light of all of the facts of company. record in this instance, including the small absolute Notice of the applications, affording opportunity for size of the organizations involved and the structure of interested persons to submit comments, has been duly banking in Wyoming, I agree with the majority’s published. The time for filing comments has expired, action in approving this proposal. In addition, I contin­ and the Board has considered the applications and all ue to believe that statewide concentration of banking comments received in light of the standards set forth in deposits is a source of legitimate inquiry and concern section 4(c)(8) of the Bank Holding Company Act to the Board in its review of acquisition applications (12 U.S.C. § 1843(c)(8)). and I do not believe the Board’s action should be read Bank Leumi, a bank organized under the laws of the as a contrary precedent. state of Israel, is the largest commercial bank in Israel and engages in banking and a variety of nonbanking July 8, 1981 activities worldwide. Bank Leumi controls Bank Orders Issued Under Section 4 of Bank Holding 1. The only assets of OHH consist of 94 percent of the voting Company Act shares of Bank Leumi, a bank organized under the laws of Israel. JCT is the trustee for a trust controlling 38.9 percent of the voting shares of OHH. This trust is also a bank holding company within the meaning of JCT Trust Company Limited, the Bank Holding Company Act and the trust is one of the Applicants. Tel Aviv, Israel 2. The Board has determined that these custodial services are incidental to the proposed securities brokerage activities, and there­ fore do not require separate approval. Applicants have also applied to Otzar Hityashvuth Hayehudim B.M ., engage in furnishing, without charge, general information and advice Tel Aviv, Israel about the Israeli economy, information about particular Israeli compa­ nies, and assistance in the formation of investment clubs to invest in Israeli companies. The Board regards these as merely promotional Bank Leumi Le-Israel B.M ., activities incidental to activities (1) and (3), and as such, not requiring Tel Aviv, Israel separate approval. 3. Applicants anticipate that the proposed securities-related activi­ ties would involve primarily securities of companies located in Israel, Order Approving Request to Engage in Certain or of subsidiaries of such companies, but Leumi Securities would also Securities-Related Activities perform some services with respect to other securities. Leumi Securi­ ties is not a member of any stock exchange, and does not offer margin accounts or otherwise extend credit in connection with securities JCT Trust Company Limited (“JCT”), Otzar Hityash­ transactions executed on behalf of customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 Federal Reserve Bulletin □ August 1981 Leumi Trust Company of New York, New York, New found these criteria useful in determining whether a York, which has total deposits in the United States of proposed new nonbanking activity is closely related to approximately $1.7 billion.4 Applicants became bank banking. Under these criteria, an activity is closely holding companies as a result of the 1970 Amendments related to banking if it is demonstrated (1) that banks to the Bank Holding Company Act. generally have in fact provided the proposed service; Applicants commenced acting, through Leumi Se­ or (2) that banks generally provide services that are curities, as broker, dealer, and underwriter in securi­ operationally or functionally so similar to the proposed ties transactions in the United States de novo in 1962. services as to equip them particularly well to provide On December 8, 1980, the Board determined that the proposed service; or (3) that banks generally Applicants are not entitled to continue to engage in the provide services that are so integrally related to the general securities business pursuant to the permanent proposed service as to require their provision in a grandfather privileges of section 4(a)(2) of the Bank specialized form. Holding Company Act (12 U.S.C. § 1843(a)(2)). On With respect to the proposed activity of executing the same date, the Board approved Applicants’ re­ unsolicited purchases and sales of securities solely for quest pursuant to section 4(c)(9) (12 U.S.C. the account of customers, it has been well established § 1843(c)(9))5 to continue to engage, through Leumi that banks do in fact provide such services. Historical­ Securities, in acting as a broker or dealer in securities ly, commercial banks, acting as agent, that is, as a issued by the State of Israel. The Board refused, broker, have assisted their customers in purchasing however, to permit Leumi Securities to continue to and selling securities and continue to do so.9 In engage in general broker-dealer or underwriter activi­ addition, the Banking Act of 1933 (the Glass-Steagall ties pursuant to section 4(c)(9). The activities for Act) expressly recognizes the permissibility of broker­ which Applicants now seek approval were conducted age activities by commercial banks. Section 16 of that as incidental activities to Leumi Securities’ now dis­ act limits the business of dealing in securities by continued general securities business. member banks “to purchasing and selling such securi­ At the same time that Applicants submitted this ties and stock without recourse, solely upon the order, application pursuant to section 4(c)(8), they also re­ and for the account of, customers . . .” (12 U.S.C. quested temporary authority for Leumi Securities to § 24 (Seventh)). As noted above, the securities broker­ engage in the activities involved pursuant to section age activities for which Applicants seek approval are 4(c)(9), pending action on this application. The Board limited in scope and appear to be substantially the approved the request for temporary authority on same as the brokerage activities that commercial March 13, 1981.6 banks provide. On the basis of these findings, the In order to authorize a bank holding company to Board finds that banks have provided the proposed engage in a nonbank activity pursuant to section securities brokerage activities and that this activity, in 4(c)(8) of the Bank Holding Company Act, the Board the context of this application, is closely related to must first determine whether the activity is closely banking. related to banking or managing or controlling banks. With regard to purchasing and selling gold and silver As the Supreme Court has made clear, an activity that coin and bullion, the Board has, in connection with an does not differ significantly from the traditional func­ earlier application, determined that a number of activi­ tions of banks is closely related to banking within the ties involving trading in gold and silver bullion are meaning of section 4(c)(8).7 In addition, a federal closely related to banking, including buying and selling circuit court has delineated certain criteria that would gold and silver bullion and silver coin, and dealing in support a finding that a particular activity is closely exchange and silver futures.10The Board’s determinarelated to banking,8 and the Board has previously NCNB Corporation Board of Governors, v. 599 F.2d 609, 613 (4th Cir. Association of Bank Travel Bureaus, Inc. Board of Gover­ 1979); v. nors, Alabama Association of 4. Banking data are as of December 30, 1980. 568 F.2d 549, 511 (7th Cir. 1978); Insurance Agents Board of Governors, 5. Section 4(c)(9) of the BHC A exempts from the nonbanking v. 533 F.2d 224, 241 (5th Cir. prohibitions of the Bank Holding Company Act shares held or 1976), rehearing denied, 558 F.2d 729 (1977), cert, denied, 435 U.S. activities conducted by a foreign company the greater part of whose 904 (1978). business is conducted outside of the United States, if the Board 9. See generally Securities and Exchange Commission, Initial Re­ determines by order or regulation that such exemption is consistent port on Bank Securities Activities (1977); Brokerage and Related with the public interest and the purposes of the Bank Holding Commercial Bank Services: Hearings before the Subcommittee on Company Act. Securities of the Senate Committee on Banking, Housing and Urban 6. 67 Federal Reserve Bulletin 362 (1981). Affairs, 94th Cong., 2d Sess. (1976); House of Representatives, Rep. 7. Board of Governors v. Investment Company Institute, 101 S. Ct. No. 1193, 94th Cong., 2d Sess. (1976). Standard and Chartered Banking Group Limited 973, 981 (1981). 10. (Mocatta 8. National Courier Association v. Board of Governors, 516 F.2d Metals, Inc.), 38 Federal Register 27552 (1973). See also Republic New York Corp. 1229,1237 (D.C. Cir. 1975). These guidelines are cited, for example, in (Republic Clearing Corporation), 63 Federal Re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 637 tion was based on the express authority of banks to Voting for this action: Chairman Volcker and Governors Schultz, Wallich, Partee, Teeters, Rice, and Gramley. engage in these services and on the fact that a number of banks are among the major dealers in gold and silver. Leumi Securities intends to confine its activi­ (Signed) W illiam W. W iles, Secretary of the Board ties with respect to gold and silver to transactions for [seal] . immediate cash payment, and only upon the order of customers. In light of the fact that banks engage in a wide variety of trading activities regarding gold and silver coin and bullion, and the limited nature of the Security Pacific Corporation, proposed activities, the Board finds that Leumi Secur­ Los Angeles, California ities’ proposed gold and silver activities are closely Order Approving Acquisition of A. J. Armstrong related to banking. Company Inc. , In order to approve the subject application, the Board must also find that Applicants’ performance, through Leumi Securities, of the activities at issue Security Pacific Corporation, Los Angeles, California, “can reasonably be expected to produce benefits to a bank holding company within the meaning of the the public, such as greater convenience, increased Bank Holding Company Act, has applied for approval competition, or gains in efficiency, that outweigh under section 4(c)(8) of the act (12 U.S.C. § 1843(c)(8)) possible adverse effects, such as undue concentration and section 225.4(b)(2) of the Board’s Regulation Y of resources, decreased or unfair competition, con­ (12 C.F.R. § 225.4(b)(2)), to acquire A. J. Armstrong flicts of interests, or unsound banking practices.” The Company, Inc., New York, New York (“Company”), Board notes that Leumi Securities began offering the a company that engages in the activities of commercial activities involved de novo. Accordingly, approval of finance and factoring, as well as arranging letters of the applications would not result in any adverse effect credit for use in international trade, and holding full on existing or potential competition. In addition, there pay-out leases. Such activities have been determined is no evidence in the record indicating that approval of by the Board to be closely related to banking this proposal would result in any other adverse effects, (12 C.F.R. § 225.4(a)). such as undue concentration of resources, unfair com­ Notice of the application, affording opportunity for petition, conflicts of interests, or unsound banking interested persons to submit comments and views on practices. the public interest factors, has been duly published. Based upon the foregoing and other considerations The time for filing comments and views has expired, reflected in the record, the Board has determined that and the Secretary of the Board has considered the the balance of the public interest factors that the Board application and all comments received in light of the is required to consider under section 4(c)(8) is favor­ public interest factors set forth in section 4(c)(8) of the able. Accordingly, the applications are hereby ap­ act. Applicant, which controls one banking subsidiary proved. This determination is subject to the conditions and holds assets of about $27.8 billion, has applied to set forth in section 225.4(c) of Regulation Y, and to the acquire Company (assets of $316.7 million),1 and Board’s authority to require such termination or modi­ thereby engage primarily in commercial finance and fication of the activities of a holding company or any of factoring activities. In connection with the application, its subsidiaries as the Board finds necessary to assure it has been considered whether the activities to be compliance with the provisions and purposes of the performed by Company can reasonably be expected to Bank Holding Company Act and the Board’s regula­ produce benefits to the public that outweigh possible tions and orders insured thereunder, or to prevent adverse effects. Having considered the record of this evasion thereof. application, it has been determined that the balance of The proposed activities shall commence not later public interest factors required to be considered under than three months after the effective date of this section 4(c)(8) is favorable. On the basis of these Order, unless such period is extended for good cause considerations, the application is approved. This de­ by the Board or by the Federal Reserve Bank of New termination is subject to the conditions set forth in York, pursuant to delegated authority. section 225.4(c) of Regulation Y, and to the authority By order of the Board of Governors, effective of the Board or Reserve Bank to require such modifi­ July 28, 1981. cation or termination of the activities of a holding company or any of its subsidiaries as it finds necessary serve Bulletin 951 (1977) (acting as futures commission merchant to execute futures contracts covering gold and silver bullion and coins _____________ is closely related to banking). 1. All banking data are as of December 31, 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

638 Federal Reserve Bulletin □ August 1981 to assure compliance with the provisions and purposes that the transferor is not in fact capable of controlling of the act and the Board’s regulations and orders the transferee. issued thereunder, or to prevent evasions thereof. In December 1974, American acquired 96,008 shares The transaction shall not be consummated later than of Bank, representing 96 percent of the outstanding three months after the effective date of this Order, voting shares of Bank, in satisfaction of a debt previ­ unless such period is extended for good cause by the ously contracted. Pursuant to section 3(a)(A)(ii) of the Board or by the Federal Reserve Bank of San Fran­ act (12 U.S.C. § 1842(a)(A)(ii)), American was not cisco acting pursuant to delegated authority. required to obtain prior approval to acquire the shares By order of the Secretary of the Board, acting of Bank but would have to obtain such approval to pursuant to delegated authority for the Board of Gov­ retain the shares of Bank if such shares were not ernors of the Federal Reserve System, effective July 7, disposed of within two years. Accordingly, in March 1981. 1975, American sold the shares of Bank to Purchasers for $55.03 per share or a total purchase price of (Signed) James M cAfee, $5,300,000. Of this amount, $400,000 was paid in cash [seal] Assistant Secretary of the Board. and $4,900,000 was paid in the form of a demand note from Purchasers to American bearing interest of 7 percent per annum, and secured by all of the Bank shares purchased. Because Purchasers were indebted Orders Issued Under Section 2 of Bank Holding to American, pursuant to the presumption contained in Company Act section 2(g)(3) of the act, American was deemed to control the shares of Bank held by the Purchasers. W alter E. Heller International Corporation, The Board was previously unable to determine that Chicago, Illinois American and Heller were not capable of controlling Purchasers of Bank (64 Federal Reserve Bulletin Order Granting Determination Under the Bank 329 (1978)). The Board had based this determination Holding Company Act principally on the fact that two retired officers of American, who continued to serve as consultants to American National Bank and Trust Company of Chi­ American, were placed as representatives of American cago (“American”), Chicago, Illinois, has requested a on Bank’s board of directors and their function was to determination pursuant to the provisions of section keep American advised of Bank’s activities. In its 2(g)(3) of the Bank Holding Company Act of 1956, as Order, the Board also expressed its concern about amended (12 U.S.C. § 1841(g)(3)) that American is not certain aspects of the structure of Purchaser’s indebt­ capable of controlling Messrs. Denis J. Daly, Jerome edness to American. The indebtedness is in the form of J. Brault and Sheldon Lavin (“Purchasers”) to whom a demand note with no repayment schedule, although American sold 96 percent of the shares of Suburban it is understood among the parties that the note is to be Trust and Savings Bank (“Bank”), Oak Park, Illinois. repaid over a 12 year period and that the annual This request is made notwithstanding the indebtedness interest rate will not exceed 7 percent. It is also to American incurred by Purchasers in connection understood that American will not call the note as long with the sale by American of its shares of Bank. as current interest is paid, satisfactory progress on American’s parent, Walter E. Heller International amortization of principal is made, and American be­ Corporation (“Heller”), Chicago, Illinois, is a bank lieves that Bank is “pursuing sound banking prac­ holding company within the meaning of section 2(a) of tices.”1 At the time of the Board’s original determina­ the act (12 U.S.C. § 1841(a)) by virtue of its ownership tion in this matter in March 1978, Purchasers had made of over 25 percent of the outstanding voting shares of no payments on the principal, and interest had been American and, pursuant to section 2(g)(1) of the act paid only to December 31, 1976. (18 U.S.C. § 1841(g)(1)), shares controlled by Ameri­ Heller has submitted evidence to the Board to show can are deemed to be indirectly controlled by Heller. that Heller and American are no longer capable of Under section 2(g)(3) of the act (12 U.S.C. controlling Purchasers and Bank. In particular, Heller § 1841(g)(3)), shares transferred after January 1, 1966, has informed the Board that as of January 1979, the by any bank holding company to a transferee that is two former officers of American ceased to be members indebted to the transferor or has one or more officers, directors, trustees, or beneficiaries in common with or subject to control by the transferor, are deemed to be 1. The Board relied on the terms of this understanding in approving the application under section 3(a)(1) of the act of Acorn Financial indirectly owned or controlled by the transferor unless Corp., Oak Park, Illinois, Bank’s parent, to become a bank holding the Board, after opportunity for hearing, determines company (64 Federal Reserve Bulletin 307 (1978)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 639 of Bank’s board of directors, and has stated that it will Board has ordered that the request of Heller and not have representatives in Bank’s management. Fur­ American for a determination pursuant to section thermore, Purchasers are now current in their interest 2(g)(3) be and hereby is granted. In the event that the payments on the indebtedness, and American has Board should later determine that facts material to this submitted that it believes Bank is currently performing determination are otherwise than as represented, or satisfactorily. In addition, American had previously that Heller or American or Purchasers have failed to submitted a resolution of its Board of Directors to the disclose to the Board other material facts, this deter­ Board to the effect that neither American nor its mination may be revoked, and any change in the facts affiliates controls or exercises a controlling influence or circumstances relied upon in making this determina­ over Bank or Purchasers, and Bank and Purchasers tion could result in the Board’s reconsideration of this had submitted a resolution of Bank’s board of direc­ determination. tors and individual affidavits, respectively, to the By order of the Board of Governors, acting through effect that Bank is not controlled by American and that its Acting General Counsel, pursuant to delegated American and its affiliates are not capable of control­ authority (12 C.F.R. § 265.2(b)(1)), effective July 2, ling Purchasers or Bank. 1981. Accordingly, on the basis of the foregoing and the facts of record, and in view of the actions Heller and American have taken to modify their relationship with (Signed) W illiam W. W iles, Bank since the Board’s adverse determination, the [seal] Secretary of the Board. Orders Approving Applications Under the Bank Holding Company Act and Bank Merger Act By the Board of Governors During July 1981, 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. 3ection 3 Board action Applicant Bank(s) (effective date) Central Bancorp, Inc., Citizens Central Bank, July 29, 1981 Nashville, Tennessee Murfreesboro, Tennessee The Central Bancorporation, Inc., The Clear Creek Valley Banking Company, July 8, 1981 Cincinnati, Ohio Amanda, Ohio First Security Bancshares, Inc., Security State Bank, July 14, 1981 Lake Park, Iowa Lake Park, Iowa Security State Bank, Hartley, Iowa United Bank Corporation of New York, Island State Bank, July 14, 1981 Albany, New York Patchogue, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 Federal Reserve Bulletin □ August 1981 Sections 3 and 4 Nonbanking Effective Applicant Bank(s) company date (or activity) First International First Bancorp, Inc., to engage in originating July 29, 1981 Bancshares, Inc., Corsicana, Texas and servicing real es­ Dallas, Texas Old Reliable Mortgage tate mortgage loans Company, Corsicana, Texas 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 Bankshares of Colorado, First Colorado Bank, N.A., Kansas City June 25, 1981 Boulder, Colorado Colorado Springs, Colorado American National Bancorp. Inc., American National Bank of Bristow Kansas City July 10, 1981 Bristow, Oklahoma Bristow, Oklahoma AmSouth Bancorporation, The First National Bank of Autauga Atlanta July 27, 1981 Birmingham, Alabama County, Prattville, Alabama Ashland Capital Corporation, Inc., The First National Bank of Ashland, Atlanta July 6, 1981 Ashland, Alabama Ashland, Alabama Binger Agency, Inc., Binger Community Bank, Kansas City July 10, 1981 Binger, Oklahoma Binger, Oklahoma Boatmen’s Bancshares, Inc., Mountain Grove National Bank, St. Louis July 28, 1981 St. Louis, Missouri Mountain Grove, Missouri Bokchito Bancshares, Inc., The First State Bank, Dallas July 2, 1981 Bokchito, Oklahoma Bokchito, Oklahoma BonState Bancshares, Inc., Bonham State Bank, Dallas July 23, 1981 Bonham, Texas Bonham, Texas Boone Bancorporation, Inc., Dixie State Bank, Cleveland July 7, 1981 Alexandria, Kentucky Walton, Kentucky Braman Bancshares, Inc., The First National Bank of Braman, Kansas City July 17, 1981 Braman, Oklahoma Braman, Oklahoma Bannen Banks of Florida, Inc., Dunnellon State Bank, Atlanta July 21, 1981 Inverness, Florida Dunnellon, Florida The Carbondale Investment The Bank of Carbondale, St. Louis July 2, 1981 Corporation, Carbondale, Illinois Carbondale, Illinois Centennial Bancshares, Inc., Centennial Bank anc( Trust, Kansas City July 10, 1981 Overland Park, Kansas Mission, Kansas Century Holding Corporation, Century Bank San Francisco July 14, 1981 San Francisco, California Los Angeles, California Chester State Bancshares, Inc., Chester State Bank, Dallas July 17, 1981 Chester, Texas Chester, Texas Citizens Deposit Bancshares, Inc., Citizens Deposit Bank, St. Louis July 16, 1981 Calhoun, Kentucky Calhoun, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 641 Section 3— Continued Reserve Effective Applicant Bank(s) Bank date Citizens Holding Corporation, Citizens State Bank, Chicago July 13, 1981 Genoa City, Wisconsin Genoa City, Wisconsin Citizens National Bancshares, Inc., Citizens National Bank and Trust Kansas City July 17, 1981 Oklahoma City, Oklahoma Co., Oklahoma City, Oklahoma Citizens State Bankshares of Bald Citizens State Bank, St. Louis July 28, 1981 Knob, Inc., Bald Knob, Arkansas Bald Knob, Arkansas Commerce Southwest Inc., Carrollton First National Bank, Dallas July 2, 1981 Dallas, Texas Carrollton, Texas Conway Bancshares, Inc., First State Bank and Trust St. Louis July 22, 1981 Little Rock, Arkansas Company, Conway, Arkansas Copperas Cove Bancshares, Inc., Cove State Bank, Dallas July 2, 1981 Copperas Cove, Texas Copperas Cove, Texas Cozad Elevators, Inc., Wilber State Company, Kansas City July 13, 1981 Cozad, Nebraska Wilber, Nebraska Culbertson Ban Corp., Culbertson State Bank of Minneapolis July 20, 1981 Culbertson, Montana Culbertson, Culbertson, Montana Eden Bank Holding Company, Inc., The First National Bank of Eden, Minneapolis July 6, 1981 Eden, South Dakota Eden, South Dakota Fall River Bankshares, Inc., Fall River State Bank, Kansas City July 10, 1981 Fall River, Kansas Fall River, Kansas First Arkadelphia Bancshares, Inc., Citizens First State Bank, St. Louis July 15, 1981 Arkadelphia, Arkansas Arkadelphia, Arkansas Grant S. Clark Investment Davis County Bank, San Francisco July 8, 1981 Company, Farmington, Utah Salt Lake City, Utah G. W. Bancorp., Inc., Greenleaf Wayside Bank, Chicago July 13, 1981 Greenleaf, Wisconsin Greenleaf, Wisconsin Grove Bancshares, Inc., State Bank of Grove, Kansas City June 25, 1981 Grove, Oklahoma Grove, Oklahoma Gunnison Bank Holding The Gunnison Bank and Trust Kansas City July 1, 1981 Corporation, Company, Gunnison, Colorado Gunnison, Colorado Hartman Bancshares, Inc., First State Bank of Okabena, Minneapolis July 14, 1981 Okabena, Minnesota Okabena, Minnesota Howe Financial Corporation, Howe State Bank, Dallas July 9, 1981 Howe, Texas Howe, Texas Independent Bankshares Vaca Valley Bank, San Francisco July 23, 1981 Corporation, Vacaville, California San Rafael, California Industrial Bancshares, Inc., Centennial Bancshares, Inc., Kansas City July 10, 1981 Kansas City, Kansas Overland Park, Kansas K. B. J. Enterprises, Inc., Crawford County Trust and Savings Chicago June 23, 1981 Sibley, Iowa Bank, Denison, Iowa The Viking Corporation, Denison, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 Federal Reserve Bulletin □ August 1981 Section 3— Continued Reserve Effective Applicant Bank(s) Bank date Kansas Bancshares, Inc., Parklane Financial Corporation, Kansas City June 25, 1981 Kansas City, Missouri Kansas City, Missouri Kimball Bancshares, Inc., State Bank of Kimball, Minneapolis July 23, 1981 Kimball, Minnesota Kimball, Minnesota Lac Qui Parle BanCorporation, Inc., State Bank of Boyd, Minneapolis July 16, 1981 Boyd, Minnesota Boyd, Minnesota Landmark Bancshares Corporation, Kansas City International Bank and St. Louis July 2, 1981 Clayton, Missouri Trust Company Kansas City, Missouri Lyon Bancorp, Inc., The Bank of Lyon County, St. Louis July 21, 1981 Eddyville, Kentucky Eddyville, Kentucky Mauston Bancorp, Inc., Bank of Mauston, Chicago July 15, 1981 Mauston, Wisconsin Mauston, Wisconsin Meeker Bancshares, Inc., Bank of Meeker, Kansas City July 13, 1981 Meeker, Oklahoma Meeker, Oklahoma Mesa Bancorp, California Heritage Bank, San Francisco July 24, 1981 San Diego, California San Diego, California Midwest Bancorp, The First National Bank of Chicago July 24, 1981 Columbus, Indiana Columbus, Columbus, Indiana Moultrie Bancorp, Inc., Hardware State Bank, Chicago July 6, 1981 Lovington, Illinois Lovington, Illinois Northwest Funding, Inc., Northwest Bank of Rockford, Chicago July 20, 1981 Rockford, Illinois Rockford, Illinois Oxford Bancshares, Inc., The Oxford Bank, Kansas City July 17, 1981 Oxford, Kansas Oxford, Kansas The People’s First National The People’s National Bank of Atlanta July 20, 1981 Bancshares, Inc., Iberia Parish New Iberia, Louisiana New Iberia, Louisiana Peoples Investment Corporation Peoples Bank of Cuba, St. Louis July 3, 1981 Cuba, Missouri Cuba, Missouri Rainsville Holding Company, Rains ville Bank, Atlanta July 10, 1981 Rainsville, Alabama Rains ville, Alabama Rio Grande City Bancshares, Inc., First National Bank of Rio Grande Dallas July 2, 1981 Rio Grande City, Texas City, Rio Grande City, Texas Royalton Bancshares, Inc., Royalton State Bank, Minneapolis July 16, 1981 Royalton, Minnesota Royalton, Minnesota Southern Bancorporation of Auburn Bank and Trust Company, Atlanta July 10, 1981 Alabama, Auburn, Alabama Birmingham, Alabama Sugarland Bankshares, Inc., Sugarland State Bank, Atlanta June 29, 1981 Jeanerette, Louisiana Jeanerette, Louisiana Sweetwater Valley Corp., Sweetwater Valley Bank, Atlanta June 29, 1981 Sweetwater, Tennessee Sweetwater, Tennessee Texplaza Bancshares, Inc., Texas Bank and Trust Co., Dallas July 24, 1981 Lubbock, Texas Lubbock, Texas Union Holding Company, The Union Bank, Minneapolis July 10, 1981 Halliday, North Dakota Halliday, North Dakota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 643 Section 3— Continued Reserve Effective Applicant Bank(s) Bank date United Central Bancshares, Inc., Perry Development Company, Chicago July 15, 1981 Des Moines, Iowa Sioux City, Iowa Valley State Bank, Sioux City, Iowa Valley View Bancshares, Inc., Centennial Bancshares, Inc., Kansas City July 10, 1981 Overland Park, Kansas Overland Park, Kansas Westex Bancorp, Inc., The First State Bank, Dallas July 27, 1981 Del Rio, Texas Bracketville, Texas Wilber State Company, The Bank of Wilber, Kansas City July 13, 1981 Wilber, Nebraska Wilber, Nebraska Sections 3 and 4 Nonbanking Reserve Effective Applicant Bank(s) company Bank date (or activity) Mathes Bancshares, Farmers State Bank of to engage de novo in the St. Louis July 10, 1981 Inc., Ellington, sale of insurance di­ Ellington, Missouri Ellington, Missouri rectly related to exten­ sions of credit made by the bank St. Joseph Bancorpora­ Central State Bank of Chicago July 10, 1981 tion, Inc. Lakeville, South Bend, Indiana Lakeville, Indiana St. Joseph Bank and Trust Company, South Bend, Indiana St. Joseph Mortgage to engage in originating, Chicago July 10, 1981 Company, Inc., acquiring, selling and South Bend Indiana servicing mortgage loans St. Joseph Lease Capi­ to engage in the leasing tal Corporation, of personal property Alexandria, Virginia Section 4 Nonbanking „ . A Effective Applicant company , (or activity) a e El Paso National Corporation, North Coast Mortgage July 22, 1981 El Paso, Texas Company, San Antonio, Texas, First York Bancorp., First Trust Company of York, July 2, 1981 York, Nebraska York, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 Federal Reserve Bulletin □ August 1981 Section 4— Continued Nonbanking Effective Applicant company date (or activity) Maryland National Corporation, Mutual Loan Plan, Inc., July 2, 1981 Baltimore, Maryland Colorado Springs, Colorado American Industrial Bank, Inc. Colorado Springs, Colorado Orders Approved Under Bank Merger Act By the Board of Governors a r i \ Effective Applicant Bank(s) ^ Central Trust Company Rochester N.Y., The Citizens Central Bank, July 6, 1981 Rochester, New York Arcade, New York By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date United Virginia Bank, The First and Merchants Na­ Richmond June 26, 1981 Richmond, Virginia tional Bank of Radford, Radford, Virginia Pending Cases Involving the Board of Governors* *This list of pending cases does not include suits 9 to 5 Organization for Women Office Workers v. against the Federal Reserve Banks in which the Board Board of Governors, filed December 1980, of Governors is not named a party. U.S.D.C. for the District of Massachusetts. Securities Industry Association Board of Gover­ v. Louis J. Roussel v. Board of Governors, filed May nors, et al., filed October 1980, U.S.D.C. for the 1981, U.S.C.A. for the District of Columbia. District of Columbia. Wilshire Oil Company of Texas v. Board of Gover­ Securities Industry Association v. Board of Gover­ nors, et al., filed April 1981, U.S.C.A. for the Third nors, et al., filed October 1980, U.S.C.A. for the Circuit. District of Columbia. People of the State of Arkansas v. Board of Gover­ A. G. Becker, Inc. v. Board of Governors, et al., filed nors, et al., filed March 1981, U.S.C.A. for the October 1980, U.S.D.C. for the District of Colum­ Western District of Arkansas. bia. First Bank & Trust Company v. Board of Governors, A. G. Becker, Inc. v. Board of Governors, et al., filed filed February 1981, U.S.D.C. for the Eastern Dis­ October 1980, U.S.C.A. for the District of Colum­ trict of Kentucky. bia. Ellis E. St. Rose & James H. Sibbet Board of Independent Insurance of America and Independent v. Governors, filed February 1981, U.S.D.C. for the Insurance Agents of Missouri v. Board of Gover­ nors, District of Columbia. filed September 1980, U.S.C.A. for the Eighth Option Advisory Service, Inc. v. Board of Governors, Circuit. et al., filed February 1981, U.S.C.A. for the Second Digitized for FRASER Circuit. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 645 Independent Insurance Agents of America and Inde­ Mercantile Texas Corporation v. Board of Governors, pendent Insurance Agents of Virginia v. Board of filed May 1980, U.S.C.A. for the Fifth Circuit. Governors, filed September 1980, U.S.C.A. for the Corbin, Trustee v. United States, filed May 1980, Fourth Circuit. United States Court of Claims. Nebraska Bankers Association, et al. v. Board of Ulyssess S. Crockett v. United States, et al., filed Governors, et al., filed September 1980, U.S.D.C. April 1980, U.S.D.C. for the Eastern District of for the District of Nebraska. North Carolina. Republic of Texas Corporation v. Board of Governors, County National Bancorporation and TGB Co. v. Board of Governors, filed September 1980, U.S.C.A. for the Fifth Cir­ filed September 1979, cuit. U.S.C.A. for the Eighth Circuit. A. G. Becker, Inc. v. Board of Governors, et al., filed Donald W. Riegel, Jr. v. Federal Open Market Com­ mittee, August 1980, U.S.D.C. for the District of Columbia. filed July 1979, U.S.D.C. for the District of Otero Savings and Loan Association v. Board of Columbia. Governors, filed August 1980, U.S.D.C. for the Security Bancorp and Security National Bank v. Board of Governors, District of Columbia. filed March 1978, U.S.C.A. for Edwin F. Gordon v. Board of Governors, et al., filed the Ninth Circuit. Roberts Farms, Inc. Comptroller of the Currency, August 1980, U.S.C.A. for the Fifth Circuit. v. U.S. League of Savings Associations v. Depository et al., filed November 1975, U.S.D.C. for the South­ Institutions Deregulation Committee, et al., filed ern District of California. David Merrill, et al. Federal Open Market Commit­ June 1980, U.S.D.C. for the District of Columbia. v. Berkovitz, et al. v. Government of Iran, et al., filed tee, filed May 1975, U.S.D.C. for the District of June 1980, U.S.D.C. for the Northern District of Columbia. California. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Al 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 All A6 Federal funds and repurchase agreements of Commercial and industrial loans large member banks A23 Gross demand deposits of individuals, partnerships, and corporations Folic y Instr uments Financial Markets Al Federal Reserve Bank interest rates A8 Depository institutions reserve requirements A23 Commercial paper and bankers dollar A9 Maximum interest rates payable on time and acceptances outstanding savings deposits at federally insured institutions A24 Prime rate charged by banks on short-term A 10 Federal Reserve open market transactions business loans A24 Terms of lending at commercial banks A25 Interest rates in money and capital markets Federal Reserve Banks A26 Stock market— Selected statistics All Savings institutions— Selected assets and A ll Condition and Federal Reserve note statements liabilities A12 Maturity distribution of loan and security holdings Federal Finance Monetar y and Credit Aggregates A28 Federal fiscal and financing operations A29 U.S. budget receipts and outlay A12 Bank debits and deposit turnover A30 Federal debt subject to statutory limitation A13 Money stock measures and components A30 Gross public debt of U.S. Treasury—Types and A14 Aggregate reserves of depository institutions ownership and member bank deposits A31 U.S. government marketable securities— A15 Loans and securities of all commercial banks Ownership, by maturity A32 U.S. government securities dealers— Transactions, positions, and financing Commercial Banks A33 Federal and federally sponsored credit agencies—Debt outstanding A16 Major nondeposit funds A17 Assets and liabilities, last Wednesday-of-month series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A2 Federal Reserve Bulletin □ August 1981 Securities Markets and International Statistics Corporate Finance A52 U.S. international transactions— Summary A34 New security issues— State and local A53 U.S. foreign trade governments and corporations A53 U.S. reserve assets A35 Open-end investment companies—Net sales and A54 Foreign branches of U.S. banks—Balance sheet asset position data A35 Corporate profits and their distribution A56 Selected U.S. liabilities to foreign official A36 Nonfinancial corporations—Assets and institutions liabilities A36 Total nonfarm business expenditures on new plant and equipment Reported by Banks in the United States A37 Domestic finance companies— Assets and liabilities; business credit A56 Liabilities to and claims on foreigners A57 Liabilities to foreigners A59 Banks’ own claims on foreigners Real Estate A60 Banks’ own and domestic customers’ claims on foreigners A38 Mortgage markets A60 Banks’ own claims on unaffiliated foreigners A39 Mortgage debt oustanding A61 Claims on foreign countries— Combined domestic offices and foreign branches Consumer Installment Credit Securities Holdings and Transactions A40 Total outstanding and net change A41 Extension and liquidations A62 Marketable U.S. Treasury bonds and notes— Foreign holdings and transactions A62 Foreign official assets held at Federal Reserve Flow of Funds Banks A63 Foreign transactions in securities A42 Funds raised in U.S. credit markets A43 Direct and indirect sources of funds to credit markets Reported by Nonbanking Business Enterprises in the United States Domestic Nonfinancial Statistics A64 Liabilities to unaffiliated foreigners A65 Claims on unaffiliated foreigners A44 Nonfinancial business activity— Selected measures A44 Output, capacity, and capacity utilization Interest and Exchange Rates A45 Labor force, employment, and unemployment A46 Industrial production—Indexes and gross value A66 Discount rates of foreign central banks A48 Housing and construction A66 Foreign short-term interest rates A49 Consumer and producer prices A66 Foreign exchange rates A50 Gross national product and income A51 Personal income and saving Guide to Tabular Presentation A67 , Statistical Releases and Special , Tables Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1981 03 Q4 Ql Q2 Feb. Mar Apr. May June Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 Reserves of depository institutions Total.............................................................................................. 6.7 16.5 2.0 3.5 -14.7 11.9 .0 12.6 -2.4 Required........................................................................................ 5.8 15.2 2.5 4.8 -4.0 6.0 7.2 9.0 -4.5 Non borrowed................................................................................. 12.4 7.2 6.8 -2.9 -12.4 21.9 -10.4 -14.6 3.5 Monetary base2............................................................................. 9.5 10.6 5.5 6.7 2.2 7.5 7.3 9.8 0.9 Concepts of money and liquid assets3 Ml-A............................................................................................ 11.3 8.2 -20.8 -5.3 -25.3 -4.6 2.6 -5.6 -9.9 Ml-B.............................................................................................. 13.9 10.8 4.9 8.7 5.7 13.1 22.3 -6.1 -7.5 M2................................................................................................. 15.4 8.1 8.2 10.6 10.6 16.2' 13.6' 3.7' 4.1 M3................................................................................................. 13.1 11.3 12.4 10.5r 11.8 10.9' 11.0' 8.5' 10.0 L..................................................................................................... 9.9 11.5 12.7' n.a. 12. 1' 5.6' 5.8' 10.0 n.a. Time and savings deposits Commercial banks Total.......................................................................................... 6.1 15.4 17.0 10.0 9.8 2.0 6.8 19.2' 17.2 Savings4...................................................................................... 22.2 1.5 -30.5 -11.9 -22.3 -10.4 -2.8 -16.0 -24.0 Small-denomination time5........................................................ 2.1 16.2 30.2 13.4 16.3 16.4 5.4 15.8 22.0 Large-denomination time6........................................................ -1.2 25.4 37.5 20.0 23.8 -5.9 13.7 44.3 35.8 Thrift institutions7......................................................................... 10.1 9.7 5.3 0.4 3.0 1.5 -2.5 2.7' 0.3 Total loans and securities at commercial banks8........................ 6.7 14.6r 11.8 5.5 8.2' -.8' 4.5 11.7' 5.7 1980 1981 1981 Q3 Q4 Ql Q2 Mar. Apr. May June July Interest rates (levels, percent per annum) Short-term rates 16 Federal funds9....................................... 9.83 15.85 16.57 17.78 14.70 15.72 18.52 19.10 19.04 17 Discount window borrowing10............. 10.35 11.78 13.00 13.62 13.00 13.00 13.87 14.00 14.00 18 Treasury bills (3-month market yield)11 9.15 13.61 14.39 14.91 13.36 13.69 16.30 14.73 14.95 19 Commercial paper (3-month)1 v2....... 9.65 15.26 15.34 16.15 13.94 14.56 17.56 16.32 17.00 Long-term rates Bonds 20 U.S. government13............................ 10.95 12.23 12.74 13.49 12.94 13.46 13.82 13.20 13.92 21 State and local government14........... 8.58 9.59 9.97 10.69 10.16 10.62 10.78 10.67 11.14 22 Aaa utility (new issue)15................... 12.20 13.49 14.45 15.41 14.71 15.68 15.81 14.76 16.30 23 Conventional morteaees'6..................... 13.12 14.62 15.10 15.10 15.25 15.70 16.35 16.40 16.70 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 are adjusted for discon­ 5. Small-denomination time deposits are those issued in amounts of less than tinuities in series that result from changes in Regulation D. $100,000. 2. Includes reserve balances at Federal Reserve Banks in the current week plus 6. Large-denomination time deposits are those issued in amounts of $100,000 or vault cash held two weeks earlier used to satisfy reserve requirements at all deposi­ more. tory institutions plus currency outside the U.S. Treasury, Federal Reserve Banks, 7. Savings and loan associations, mutual savings banks, and credit unions. the vaults of depository institutions, and surplus vault cash at depository institu­ 8. Changes calculated from figures shown in table 1.23. tions. 9. Averages of daily effective rates (average of the rates on a given date weighted 3. Ml-A: 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; (2) currency outside the Treasury, Federal Reserve Banks, and the 12. Unweighted average of offering rates quoted by at least five dealers. vaults of commercial banks; and (3) travelers checks of nonbank issuers. 13. Market yields adjusted to a 20-year maturity by the U.S. Treasury. Ml-B: Ml-A plus negotiable order of withdrawal and automated transfer service 14. Bond Buyer series for 20 issues of mixed guality. accounts at banks and thrift institutions, credit union share draft accounts, and 15. Weighted averages of new publicly offerea bonds rated Aaa, Aa, and A by demand deposits at mutual savings banks. Moody’s Investors Service and adjusted to an Aaa basis. Federal Reserve com­ M2: Ml-B plus savings and small-denomination time deposits at all depository pilations, institutions, overnight repurchase agreements at commercial banks, overnight Eu­ 16. Average rates on new commitments for conventional first mortgages on new rodollars held by U.S. residents other than banks at Caribbean branches of member homes in primary markets, unweighted and rounded to nearest 5 basis points, from banks, and money market mutual fund shares. Dept, of Housing and Urban Development. M3: M2 plus large-denomination time deposits at all depository institutions and term RPs at commercial banks and savings and loan associations. L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents other than banks, bankers acceptances, commercial paper, Treasury bills and other liquid Treasury securities, and U.S. savings bonds. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics □ August 1981 1.11 RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for week-ending Factors 1981 1981 May June July June 17 June 24 July 1 July 8 July 15 July 22 July 29 Supplying Reserve Funds 1 Reserve Bank credit outstanding................. 144,065 144,999 147,405 144,653 145,949 146,175 146,592 147,172 148,927 147,425 2 U.S. government securities1........................ 119,937 120,637 122,882 120.655 121,618 121,340 122,058 123,129 123,889 122,820 3 Bought outright......................................... 119,819 120,333 121,203 120.655 120,971 120,684 121,384 120,624 121,344 121,604 4 Held under repurchase agreements......... 118 304 1,679 0 647 656 674 2,505 2,545 1,216 5 Federal agency securities.............................. 8,738 8,773 9,067 8.707 8,891 8,791 8,956 9,094 9,395 8,867 6 Bought outright......................................... 8,720 8,710 8,694 8.707 8,707 8,703 8,694 8,694 8,694 8,694 7 Held under repurchase agreements......... 18 63 373 0 184 88 262 400 701 173 8 Acceptances................................................... 20 155 338 0 142 522 339 393 453 154 9 Loans.............................................................. 2,154 2,038 1,751 1,895 2,305 1,735 1,866 1,295 1,730 1,978 10 Float.............................................................. 3,085 3,474 3,176 3,628 2,577 3,332 2,983 3,276 3,230 3,462 11 Other Federal Reserve assets....................... 10,131 9,922 10,191 9,769 10,415 10,455 10,389 9,984 10,229 10,145 12 Gold stock..................................................... 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 13 Special drawing rights certificate account... 2,818 2,826 3,068 2,818 2,818 2,889 3,068 3,068 3,068 3,068 14 Treasury currency outstanding..................... 13,597 13,587 13,588 13,567 13,571 13,659 13,583 13,585 13,590 13,594 Absorbing Reserve Funds 15 Currency in circulation.................................. 135,684 136,730 138,335 136,956 136,652 136,928 138,372 139,069 * 138,411 137,732 16 Treasury cash holdings.................................. 509 498 468 502 495 485 480 475 463 457 Deposits, other than member bank reserves, with Federal Reserve Banks 17 Treasury.................................................... 3,210 3,049 3,144 3,196 3,021 3,213 2,934 3,407 3,106 3,063 18 Foreign...................................................... 342 292 309 258 310 281 406 262 293 282 19 Other.......................................................... 283 367 538 391 321 404 572 524 490 531 20 Other Federal Reserve liabilities and capital.................................................... 4,784 4,810 5,249 4,636 5,259 5,183 5,227 4,867 5,024 6,001 21 Reserve accounts2......................................... 26,822 26,819 27,172 26,254 27,430 27,383 26,406 26,373 28,952 27,176 End of month figures Wednesday figures 1981 1981 May June July June 17 June 24 July 1 July 8 July 15 July 22 July 29 Supplying Reserve Funds 22 Reserve bank credit outstanding................... 140,540 142,934 144,651 151,595 144,646 147,760 150,229 149,276 155,422 147,760 23 U.S. government securities1........................ 118.311 120.017 123,172 121.346 119.360 120.276 124,312 122,289 125,682 122,549 24 Bought outright......................................... 118.311 120.017 121,554 121.346 119.360 120.276 122,979 121,581 121,658 120,873 25 Held under repurchase agreements......... 0 0 1,618 0 0 0 1,333 708 4,024 1,676 26 Federal agency securities.............................. 8.720 8.694 9,054 8.707 8.707 8.694 9,231 8,918 9,998 9,251 27 Bought outright......................................... 8.720 8.694 8,694 8.707 8.707 8.694 8,694 8,694 8,694 8,694 28 Held under repurchase agreements......... 0 0 360 0 0 0 537 224 1,304 557 29 Acceptances................................................... 0 0 453 0 0 0 668 223 621 296 30 Loans.............................................................. 1,366 1,010 1,027 6,357 1,803 4,128 2,831 3,286 5,230 1,916 31 Float.............................................................. 2,542 2,506 1,251 4,660 4,315 3,661 3,157 4,443 3,626 3,060 32 Other Federal Reserve assets....................... 9,601 10,707 9,694 10,525 10,461 11,001 10,030 10,117 10,265 10,688 33 Gold stock..................................................... 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 34 Special drawing rights certificate account... 2,818 3,068 3,068 2,818 2,818 3,068 3,068 3,068 3,068 3,068 35 Treasury currency outstanding..................... 14,111 14,155 13,599 13,570 13,575 13,580 13,584 13,588 13,593 13,599 Absorbing Reserve Funds 36 Currency in circulation.................................. 136,460 138,080 137,536 137,127 136,930 137,856 139,429 139,181 138,348 138,158 506 478 448 37 Treasury cash4 9h3oldings....4.8..1.................4..7..7...... 466 463 453 498 Deposits, other than member bank reserves, with Federal Reserve Banks 38 Treasury..................................................... 2,288 2,923 2,922 5,215 2,909 3,700 2,853 3,153 3,573 3,193 346 338 285 39 19F6oreign....2.3..7.................2..7..5.................2.9..2...... 288 346 211 40 Other.......................................................... 275 536 472 435 284 961 521 486 674 1,010 41 Other Federal Reserve liabilities and capital.................................................... 4,444 5,330 4,798 4,714 5,217 5,267 4,632 4,558 5,064 5,686 24,304 23,626 4226 ,R01e1serve a3c0c,o9u5n1ts2......2..6..,.1..2.2............2..7..,.0..2..1...... 29,831 28,953 34,769 26,870 1. Includes securities loaned—fully guaranteed by U.S. government securities 2. Includes reserve balances of all depository institutions, 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

Depository Institutions A5 1.12 RESERVES AND BORROWINGS Depository Institutions Millions of dollars Monthly averages of daily figures Reserve classification 1980 1981 Dec. Nov. Apr .p May? July? 1 Reserve balances with Reserve Banks1....... 32,473 29,215 26,664 27,114 26,591 26,722 27,117 26,822 26,819 27,168 2 Total vault cash (estimated)........................ 15,311 18,149 19,293 17,824 17,327 17,189 17,773 18,198 18,273 3 Vault cash at institutions with required reserve balances2................................ 11,344 11,876 12,602 13,587 12,187 11,687 11,687 12,124 12,396 12,504 4 Vault cash equal to required reserves at other institutions................................ n.a. 439 704 700 763 1,237 1,204 1,310 1,350 1,319 5 Surplus vault cash at other institutions3 .. n.a. 2,996 4,843 5,006 4,874 4,403 4,298 4,339 4,452 4,450 6 Reserve balances + total vault cash4......... 43,972 44,674 44.940 46,520 44,524 44,155 44,395 44,683 45,100 45,503 7 Reserve balances + total vault cash used to satisfy reserve requirements4,5......... n.a. 41,678 40,097 41,514 39,650 39,752 40,097 40,344 40,648 41,053 8 Required reserves (estimated).................... 43,578 40,723 40,067 41,025 39,448 39,372 40,071 40,213 40,098 40,675 9 Excess reserve balances at Reserve Banks4,6. 394 955 30 489 202 380 26 131 550 378 10 Total borrowings at Reserve Banks......... 1,473 2,156 1,617 1,405 1,278 1,004 1,343 2,154 2,038 1,751 11 Seasonal borrowings at Reserve Banks 99 116 120 148 197 161 259 291 248 All commercial banks 12 Reserves held................................................. 24.940 26,267 24,874 24,772 24,894 25,033 25,332 39,245 13 Required..................................................... 25,819 26,605 25,328 25,145 25,519 25,450 25,315 39,440 14 Excess............................................................ -879 -338 -454 -373 -625 -417 17 -195 U.S. agencies and branches 15 Reserves held................................................. 260 253 388 461 444 576 651 644 16 Required..................................................... 230 228 366 450 432 545 628 610 17 Excess........................................................ 30 25 22 11 12 31 23 34 All other institutions 18 Reserves held................................................. 494 513 502 605 611 649 646 653 19 Required..................................................... 495 502 519 548 562 585 606 625 20 Excess........................................................ -1 11 -17 57 49 64 40 28 Weekly averages of daily figures for week ending May 27p June 2>p June 10? June IIP June 24 p July lp July 18* July 15* July 22 p July 29p 21 Reserve balances with Reserve Banks1........ 26,835 26,220 25,612 26,254 27,430 27,383 26,406 26,373 28,952 26,997 22 Total vault cash (estimated)........................ 17,627 18,249 18,312 18,846 17,306 18,325 18,495 18,856 16,736 18,878 23 Vault cash at institutions with required reserve balances2................................ 11,940 12,379 12,379 12,756 11,907 12,573 12,729 12,831 11,411 12,940 24 Vault cash equal to required reserves at other institutions................................ 1,384 1,414 1,433 1,417 1,230 1,285 1,309 1,361 1,258 1,351 25 Surplus vault cash at other institutions3.. 4,303 4,456 4,500 4,673 4,169 AMI 4,457 4,664 4,067 4,587 26 Reserve balances + total vault cash4......... 44,552 44,556 44,011 45,185 44,818 45,785 44,975 45,288 45,747 45,931 27 Reserve balances + total vault cash used to satisfy reserve requirements4,5......... 40,249 40,100 39,511 40,512 40,649 41,318 40,518 40,624 41,680 41,344 28 Required reserves (estimated)..................... 39,810 39,855 39,262 40,223 40,285 40,830 40,017 40,495 41,350 40,895 29 Excess reserve balances at Reserve Banks4,6. 439 245 249 289 364 488 501 129 330 449 30 Total borrowings at Reserve Banks......... 2,923 1,954 2,207 1,895 2,305 1,735 1,866 1,295 1,730 1,978 31 Seasonal borrowings at Reserve Banks 309 287 277 279 306 306 241 247 244 258 All commercial banks 32 Reserves held................................................. 25,056 24,494 24,506 25,119 25,768 39,645 38,412 38,805 39,747 40,124 33 Required..................................................... 25,032 25,185 24,788 25,458 25,391 39,616 38,813 39,243 40,095 39,657 34 Excess......................................................... 24 -691 -282 -339 377 29 -401 -438 -348 467 U.S. agencies and branches 35 Reserves held................................................. 669 668 695 663 617 616 621 665 688 621 36 Required..................................................... 627 636 651 648 610 598 593 627 600 619 37 Excess........................................................ 42 32 44 15 7 18 28 38 88 2 All other institutions 38 Reserves held................................................. 735 631 657 640 645 657 624 649 675 675 39 Required..................................................... 579 572 601 623 602 616 611 625 655 619 40 Excess......................................................... 156 59 56 17 43 41 13 24 20 56 1. Includes all reserve balances of depository institutions. existing member bank, or when a nonmember bank joins the Federal Reserve 2. Prior to Nov. 13, 1980, the figures shown reflect only the vault cash held by System. For weeks for which figures are preliminary, figures by class of bank do member banks. not add to total because adjusted data by class are not available. 3. Total vault cash at institutions without required reserve balances less vault 5. Reserve balances with Federal Reserve Banks plus vault cash at institutions cash equal to their required reserves. with required reserve balances plus vault cash equal to required reserves at other 4. Adjusted to include waivers of penalties for reserve deficiencies in accordance institutions. with Board policy, effective Nov. 19, 1975, of permitting transitional relief on a 6. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy graduated basis over a 24-month period when a nonmember bank merged into an reserve requirements less required reserves. (This measure of excess reserves is comparable to the old excess reserve concept published historically.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics □ August 1981 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks1 Averages of daily figures, in millions of dollars 1981, week ending Wednesday June 3 June 10 June 17 June 24 July 1 July 8 July 15 July 22 July 29 One day and continuing contract 1 Commercial banks in United States................................ 46,911 50,831 50,506 47,880 46,496 51,960 52,105 46,894 44,540 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 14,048 14,878 15,463 16,955 16,309 15,534 16,295 15,561 15,543 3 Nonbank securities dealers............................................... 3,250 3,000 2,375 2,919 2,600 2,831 2,998 3,041 2,732 4 All other............................................................................. 19,942 20,339 21,159 21,076r 20,731 17,066 20,660 21,320 21,791 All other maturities 5 Commercial banks in United States................................ 3,516 3,715 3,734 4,077 3,655 4,930 3,572 3,504 3,515 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 7,492 7,239 7,120 7,137 7,410 7,429 7,732 8,218 7,376 7 Nonbank securities dealers............................................... 5,139 4,968 5,126 5,126r 5,313 5,469 4,926 4,884 4,919 8 All other............................................................................. 10,880 11,550 11,216 10,580r 9,702 12,731 9,822 9,849 9,507 Memo: Federal funds and resale agreement loans in ma­ turities of one day or continuing contract 9 Commercial banks in United States................................ 15,240 16,233 14,787 14,988 16,006 15,924 17,081 15,304 14,796 10 Nonbank securities dealers............................................... 3,033 2,502 2,814 2,611 2,931 2,744 2,295 2,601 2,355 1. Banks with assets of $1 billion or more as of Dec. 31, 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments Al 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit Short-term Emergency credit adjustment credit1 to all others Federal Reserve Seasonal credit Special circumstances2 under section 133 Bank Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous Rate on Effective Previous 7/31/81 date rate 7/31/81 date rate 7/31/81 date rate 7/31/81 date rate Boston..................... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 New York............... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Philadelphia........... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Cleveland............... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Richmond............... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Atlanta................... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Chicago................... 14 5/8/81 13 14 5/8/81 13 15 5/8/81 14 17 5/8/81 16 St. Louis................. 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Minneapolis........... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Kansas City........... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Dallas..................... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 San Francisco......... 14 5/5/81 13 14 5/5/81 13 15 5/5/81 14 17 5/5/81 16 Range of rates in recent years4 Range (or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o an f k Effective date A le l v l e F l) . — R. B o an f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1972................. 4l/2 4Vi 1976— Jan. 19.................. 5 Vi-6 5Vi 1979— Sept. 19................... 10 Vi-11 11 1973— Jan. 15............................ 5 5 23.................. 5 Vi 51/2 21................... 11 11 Feb. 26............................ 5-5 Vi 5 Vi Nov. 22.................. 51/4-5 Vi 51/4 Oct. 8................... 11-12 12 Mar. 2............................ 5 Vi 5Vi 26.................. 5>/4 5V4 10................... 12 12 Apr. 23............................ 5Vi-53/4 5 Vi May 4............................ 53/4 53/4 1977— Aug. 30.................. 5>/4-53/4 5V4 1980- Feb. 15................... 12-13 13 11............................ 53/4-6 6 31.................. 5!/4-53/4 53/4 19................... 13 13 18............................ 6 6 Sept. 2.................. 53/4 53/4 May 29................... 12-13 13 June 11............................ 6-6 Vi 6 Vi Oct. 26.................. 6 6 30................... 12 12 J A u u ly g . 1 1 2 4 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l- 7 6 V Vi /2 1 V 6 V /2 i 1978— Jan. 2 9 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 - V 6 i Vi 6 6V Vz i J J u u l n y e 2 1 1 8 3 6 . . . . . .. . . . . .. . . . . . . . . . . .. . . . . .. . . . . . . . . . . .. . . . . .. . . . . . . . . 1 1 0 1 1 - - 1 1 1 1 2 1 1 1 1 1 0 23............................ 7Vi 7 Vi May 11.................. &/2-1 1 29................... 10 10 12.................. 1 7 Sept. 26................... 11 11 1974— Apr. 25............................ 71/2—8 8 July 3.................. 7-71/4 IVa Nov. 17................... 12 12 30............................ 8 8 July 10.................. 71/4 71/4 Dec. 5................... 12-13 13 Dec 9............................ 73/4-8 73/4 Aug. 21.................. 73/4 73/4 8............. 13 13 16............................ 73/4 73/4 Sept. 22.................. 8 8 Oct. 16.................. 8-8 Vi m 1981— May 5................... 13-14 14 1975— Jan. 6............................ 7'/4 7!/4 20.................. 8 Vi 8V2 May 8................... 14 14 10............................ 71/4 7>/4 Nov. 1.................. 8Vi-9Vi 9l/2 24............................ 71/4 7V4 3.................. 9Vi 9l/t Feb. 5............................ 63/4-71/4 63/4 Mar. 1 7 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61/ 6 4 3 - / 6 4 3/4 6 61 3/ / 4 4 1979— J A u u ly g . 2 1 0 7 . .. .. .. .. .. .. .. .. . . .. .. . . . . .. . . .. .. . 10 1 - 0 101/2 1 1 0 0V1 14............................ 6*/4 61/4 20.................. lOVi 10V4 May 16............................ 6-6 !/4 6 In effect July 31, 1981 14 14 1. Effective May 5, 1981, a 4 percent surcharge was applied to short-term ad­ 4. Rates for short-term adjustment credit. For description and earlier data see justment credit borrowings by institutions with deposits of $500 million or more the following publications of the Board of Governors: Banking and Monetary who borrowed in successive weeks or in more than 4 weeks in a calendar quarter. Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1971-1975, 1972- 2. Applicable to advances when exceptional circumstances or practices involve 1976, 1973-1977, and 1974-1978. only a particular depository institution as described in section 201.3(b) (2) of Reg­ In 1980 and 1981, the Federal Reserve applied a surcharge to short-term ad­ ulation A. justment credit borrowings by institutions with deposits of $500 million or more 3. Applicable to emergency advances to individuals, partnerships, and corpo­ that had borrowed in successive weeks or in more than 4 weeks in a calendar rations as described in section 201.3(c) of Regulation A. quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, 1980. On Nov. 17, 1980, a 2 percent surcharge was adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980 and to 4 percent on May 5, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics □ August 1981 1.15 DEPOSITORY INSTITUTIONS RESERVE REQUIREMENTS1 Percent of deposits Member bank requirements Depository institution requirements before implementation of the after implementation of the Type of deposit, and deposit interval Monetary Control Act Type of deposit, and Monetary Control Act5 in millions of dollars deposit interval 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..................... 9 Vi 12/30/76 Over $25 million............... 12 11/13/80 10-100 .................. ll3/4 12/30/76 100-400 ........................ 123/4 12/30/76 Nonpersonal time deposits1 Over 400...................... 16!/4 12/30/76 By original maturity Less than 4 years........... 11/13/80 Time and savings2,3 4 years or more............. 11/13/80 Savings........................ Eurocurrency liabilities Time4 All types........................ 11/13/80 0-5, by maturity 30-179 days ......... 3 2x/i 3/16/67 180 days to 4 years 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 IVi 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 Apr. 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 non­ to 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 were 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 Mar. designated under a criterion adopted effective Nov. 9,1972, by which a bank having 20,1980, the base was lowered by (a) 7 percent or (b) the decrease in an institution’s net demand deposits of more than $400 million was considered to have the character U.S. office gross loans to foreigners and gross balances due from foreign offices of business of a reserve city bank. The presence of the head office of such a bank of other institutions between the base period (Sept. 13-26, 1979) and the week constituted designation of that place as a reserve city. Cities in which there were ending Mar. 12,1980, whichever was greater. For the computation period beginning Federal Reserve Banks or branches were also reserve cities. Any banks having net May 29,1980, the base was increased by lx/i percent above the base used to calculate demand deposits of $400 million or less were considered to have the character of the marginal reserve in the statement week of May 14-21, 1980. In addition, business of banks outside of reserve cities and were permitted to maintain reserves beginning Mar. 19, 1980, the base was reduced to the extent that foreign loans and at ratios set for banks not in reserve cities. balances declined. (c) Effective Aug. 24, 1978, the Regulation M reserve requirements on net 5. For existing nonmember banks and thrift institutions at the time of imple­ balances due from domestic banks to their foreign branches and on deposits that mentation of the Monetary Control Act, the phase-in period ends Sept. 3, 1987. foreign branches lend to U.S residents were reduced to zero from 4 percent and For existing member banks the phase-in period is about three years, depending on 1 percent respectively. The Regulation D reserve requirement on borrowings from whether their new reserve requirements are greater or less than the old require­ unrelated banks abroad was also reduced to zero from 4 percent. ments. For existing agencies and branches of foreign banks, the phase-in ends Aug. (d) Effective with the reserve computation period beginning Nov. 16, 1978, 12, 1982. All new institutions will have a two-year phase-in beginning with the date domestic deposits of Edge corporations were subject to the same reserve require­ that they open for business. ments as deposits of member banks. 6. Transaction accounts include all deposits on which the account holder is 3. (a) Negotiable order of withdrawal (NOW) accounts and time deposits such permitted to make withdrawals by negotiable or transferable instruments, payment as Christmas and vacation club accounts were subject to the same requirements as orders of withdrawal, and telephone and preauthorized transfers (in excess of three savings deposits. per month) for the purpose of making payments to third persons or others. (b) The average reserve requirement on savings and other time deposits before 7. In general, nonpersonal time deposits are time deposits, including savings implementation of the Monetary Control Act had to be at least 3 percent, the deposits, that are not transaction accounts and in which the beneficial interest is minimum specified by law. held by a depositor that is not a natural person. Also included are certain trans­ 4. (a) Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent ferable time deposits held by natural persons, and certain obligations issued to was imposed on large time deposits of $100,000 or more, obligations of affiliates, depository institution offices located outside the United States. For details, see and ineligible acceptances. This supplementary requirement was eliminated with section 204.2 of Regulation D. 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 Type and maturity of deposit In effect July 31, 1981 Previous maximum In effect July 31, 1981 Previous maximum Effective Effective Effective Effective date date date date 2 1 N Sa e v g i o n ti g a s b . l . e .. .. o .. r . d .. e .. r . .. o .. f . . w ... i . t . h ... d .. r . a .. w .. a .. l . .. a .. c . c .. o .. u .. n .. t . s .. . 2 .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5» '/ / 4 4 12 7 /3 /1 1 / / 7 8 9 0 7 1 / / 1 1 / / 7 7 3 4 5 5 > 1 / / 2 4 12 7 /3 /1 1 / / 7 8 9 0 5 5>/4 1 ( / ' 1 ) /74 Time accounts 3 Fixed ceiling rates by maturity 4 3 14-89 days ".................................................................. 5'/4 8/1/79 5 7/1/73 (6) (6). 4 90 days to 1 vear.......................................................... 5% 1/1/80 5'/2 7/1/73 6 1/1/80 53/4 (') 6 5 2 1 t t o o 2 2 V y i e y a e rs a r 7 s . 7 ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7/1/73 5 5 - ' V /2 4 1 1 / / 2 2 1 1 / /7 7 0 0 6'/2 (') 6 53/4 1 1 / / 2 2 1 1/ /7 70 0 7 8 9 4 6 2> / t t 2 o o t 6 o 8 y y 4 e e y a a e r r s s a r 8 8 s . . 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 V 1 ' / / / 2 2 4 12 1 7 1 /2 / / 1 1 3 / / / 7 7 7 3 3 4 (9) 7 5 1 3 / / 4 4 1 11 /2 /1 1 / / 7 7 3 0 6 7 1 3 3 V / / 4 4 2 12 1 / 1 . 2 ( / 3 1 ') / / 7 7 4 3 o 6 7V2 1 ii /2 / 1 1/ /7 73 0 10 8 years or more 8........................................................ 73/4 6/1/78 (6) 8 6/1/78 11 Issued to governmental units (all maturities) 10....... 8 6/1/78 73/4 ’ 12/23/74’ 8 6/1/78 VA ’12/23/74’ 12 Individual retirement accounts and Keogh (H.R. 10) plans (3 years or more) 1(),n................................ 6/1/78 73/4 7/6/77 6/1/78 73/4 7/6/77 Special variable ceiling rates by maturity 1 1 4 3 6 2 - l/ m i o y n ea th rs m o o r n m ey o r m e a .. r . k .. e .. t . .. t . i . m ... e .. .. d . e .. p .. o .. s .. i . t . s .. . 1 .. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ( b 13j C4) f5) C5) ( ( ? ) ( ) ( C 5) } o 05) 1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loan or less. Thrift institutions may pay a maximum 9 percent when the six-month bill associations. rate is between 8-V4 and 9 percent. Also effective March 15. 1979, interest com­ 2. For authorized states only, federally insured comirifercial banks, savings and pounding was prohibited on six-month money market time deposits at all offering loan associations, cooperative banks, and mutual savings banks in Massachusetts institutions. The maximum allowable rates in July for commercial banks and thrift and New Hampshire were first permitted to offer negotiable order of withdrawal institutions were as follows: July 7, 14.30; July 14. 14.480: July 21, 15.568; July (NOW) accounts on Jan. 1, 19/4. Authorization to issue NOW accounts was ex­ 28. 15.040. Effective for all six-month money market certificates issued beginning tended to similar institutions throughout New England on Feb. 27, 1976, and in June 5. 1980. the interest rate ceilings will be determined by the discount rate New York State on Nov. 10, 1978, and in New Jersey on Dec. 28. 1979. Author­ (auction average) of most recently issued six-month U.S. Treasury bills as follows: ization to issue NOW accounts was extended to similar institutions nationwide Bill rate Commercial bank ceiling Thrift ceiling effective Dec. 31, 1980. 8.75 and above bill rate + lA percent bill rate + ‘A percent 3. For exceptions with respect to certain foreign tinie deposits see the Federal 8.50 to 8.75 bill rate + '/4 percent 9.00 Reserve Bulletin for October 1962 (p. 1279), August 1965 (p. 1084), and Feb­ 7.50 to 8.50 bill rate + lA percent bill rate + ]/2 percent ruary 1968 (p. 167). 7.25 to 7.50 7.75 bill rate + ]/i percent 4. 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. period for time deposits at savings and loan associations in excess of $100,000 was 14. Effective Jan. 1. 1980. commercial banks, savings and loan associations, and decreased to 14 days. Effective Oct. 30. 1980, the minimum maturity or notice mutual savings banks were authorized to offer variable-ceiling nonnegotiable time period for time deposits was decreased from 30 days to 14 days for mutual savings deposits with no required minimum denomination and with maturities of 2lA years banks. or more. The maximum rate for commercial banks is 3/4 percentage point below 5. Effective Oct. 30, 1980, the minimum maturity or notice period for time the yield on 2'/z-year U.S. Treasury securities: the ceiling rate for thrift institutions deposits was decreased from 30 days to 14 days for commercial banks. is 1/4 percentage point higher than that for commercial banks. Effective Mar. 1, 6. No separate account category. 1980. a temporary ceiling of ll3/4 percent was placed on these accounts at com­ 7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was mercial banks; the temporary ceiling is 12 percent at savings and loan associations required for savings and loan associations, except in areas where mutual savings and mutual savings banks. Effective for all variable-ceiling nonnegotiable time banks permitted lower minimum denominations. This restriction was removed for deposits with maturities of 2]/2 years or more issued beginning June 2, 1980, the deposits maturing in less than 1 year, effective Nov. 1, 1973. ceiling rates of interest will be determined as follows: 8. No minimum denomination. Until July 1. 1979. minimum denomination was Treasury xield Commercial bank ceiling Thrift ceiling $1,000 except for deposits representing funds contributed to an Individual Retire­ 12.00 and above 11.75 12.00 ment Account (IRA) or a Keogh (H.R. 10) plan established pursuant to the Internal 9.50 to 12.00 Treasury yield less ]A percent Treasury yield Revenue Code. The $1,000 minimum requirement was removed for such accounts Below 9.50 9.25 9.50 in December 1975 and November 1976 respectively. Interest may be compounded on these time deposits. The ceiling rates of interest 9. Between July 1, 1973, and Oct. 31, 1973, there was no ceiling for certificates at which these accounts may be offered vary biweekly. The maximum allowable maturing in 4 years or more with minimum denominations of $1,000: however, the rates in July for commercial banks were as follows: July 7. 11.75: July 21. 11.75. amount of such certificates that an institution could issue was limited to 5 percent The maximum allowable rates in July for thrift institutions were as follows: July of its total time and savings deposits. Sales in excess of that amount, as well as 7. 12.00: July 21. 12.00. certificates of less than $1,000. were limited to the 61/2 percent ceiling on time 15. Between July 1. 1979. and Dec. 31. 1979. commercial banks, savings and deposits maturing in 2'/> years or more. loan associations, and mutual savings banks were authorized to offer variable ceiling Effective Nov. 1, 1973, ceilings were reimposed on certificates maturing in 4 accounts with no required minimum denomination and with maturities of 4 years years or more with minimum denomination of $1,000. There is no limitation on or more. The maximum rate for commercial banks was 1 lA percentage points below the amount of these certificates that banks can issue. the yield on 4-year U.S. Treasury securities; the ceiling rate for thrift institutions 10. Accounts subject to fixed-rate ceilings. See footnote 8 for minimum denom­ was 1/4 percentage point higher than that for commercial banks. ination requirements. Note. Before Mar. 31. 1980. the maximum rates that could be paid by federally 11. Effective January 1, 1980, commercial banks are permitted to pay the same insured commercial banks, mutual savings banks, and savings and loan associations rate as thrifts on IRA and Keogh accounts and accounts of governmental units were established by the Board of Governors of the Federal Reserve System, the when such deposits are placed in the new 2'/^-year or more variable-ceiling certif­ Board of Directors of the Federal Deposit Insurance Corporation, and the Federal icates or in 26-week money market certificates regardless of the level of the Treasury Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526 re­ bill rate. spectively. Title II of the Depository Institutions Deregulation and Monetary Con­ 12. Must have a maturity of exactly 26 weeks and a minimum denomination of trol Act of 1980 (P.L. 96-221) transferred the authority of the agencies to establish $10,000. and must be nonnegotiable. maximum rates of interest payable on deposits to the Depository Institutions De­ 13. Commercial banks, savings and loan associations, and mutual savings banks regulation Committee. The maximum rates on time deposits in denominations of were authorized to offer money market time deposits effective June 1. 1978. The $100,000 or more with maturities of 30-89 days were suspended in June 1970; such ceiling rate for commercial banks on money market time deposits entered into deposits maturing in 90 days or more were suspended in May 1973. For information before June 5, 1980, is the discount rate (auction average) on most recently issued regarding previous interest rate ceilings on all types of accounts, see earlier issues six-month U.S. Treasury bills. Until Mar. 15, 1979, the ceiling rate for savings and of the Federal Reserve Bulletin, the Federal Home Loan Bank Board Journal, loan associations and mutual savings banks was lA percentage point higher than and the Annual Report of the Federal Deposit Insurance Corporation. the rate for commercial banks. Beginning March 15, 1979, the >/4-percentage-point interest differential is removed when the six-month Treasury bill rate is 9 percent or more. The full differential is in effect when the six-month bill rate is 83/4 percent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics □ August 1981 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1980 1981 Type of transaction 1978 1979 1980 Dec. Jan. Feb. Mar. Apr. May June U.S. Government Securities Outright transactions (excluding matched salepurchase transactions) Treasury bills 4 3 2 1 G G E R x r r e c o o d h s s e s s a m n p s g p a u e l t r e i c o . s h . n . . a . . . . s s . . . . . e . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 2 3 6 , . , 7 0 6 3 2 2 5 3 8 0 1 6 2 5 , . , 8 9 9 5 0 9 5 0 8 0 7 7 3 . . . 3 6 3 3 6 8 1 8 9 0 1.33 4 1 9 0 0 3 1 1 , . . 8 1 0 6 0 0 5 0 0 0 357 0 0 0 1.607 0 0 0 1.141 0 0 0 790 0 0 0 29 9 5 0 0 0 Others within 1 vear1 6 5 G G r r o o s s s s p sa u l r e c s h . a .. s .. e . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.184 0 3,203 0 912 0 10 0 0 0 0 23 0 0 0 115 0 0 0 0 0 9 7 8 M R Ex e a c d t h u e a r m n it g y p e t s i h o .. n i . f . s . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -5,170 0 -1 1 1 2 7 . . 3 , 6 3 0 0 3 8 0 9 -1 1 8 2 .2 .4 5 2 1 7 0 -9 7 6 5 7 4 0 462 0 0 -1.9 9 3 9 6 0 0 -1,3 8 8 7 5 8 0 -2 5 6 2 1 2 0 -1 2 ,2 ,9 8 0 1 0 0 -8 8 2 3 3 3 0 1 1 1 0 1 t G G o r r 5 o o s s v s s e a s p r a u s l r e c s h . a .. s .. e .. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.188 0 2.148 0 2.138 0 0 0 0 0 0 0 0 0 469 0 0 0 0 0 1 1 2 3 M Ex a c t h u a r n it g y e s h .. i . f .. t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -178 -12 7 ,6 ,5 9 0 3 8 -8 13 .9 .4 0 1 9 2 -7 9 5 6 4 7 -462 0 - 1 9 .2 9 1 0 1 - 1 8 .3 7 8 8 5 -5 2 2 6 2 1 -1,7 6 2 8 4 1 -8 8 3 2 3 3 5 to 10 vears 1 1 1 1 7 5 4 6 M E G G x r r a c o o t h s s u s s a r n i s p t g y a u e l r s e c h . s h . i . . a f . . . . t s . . . . . e . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 , , 8 5 0 2 3 6 0 -4 2 ,6 ,1 5 4 8 2 6 1 3 0 -3 2 .0 .9 7 9 7 0 2 0 3 0 0 0 0 0 0 0 0 0 400 0 0 0 0 0 0 0 16 0 0 0 4 -1,1 3 7 0 6 0 0 0 0 0 0 0 Over 10 years 18 Gross purchases................................................... 1,063 454 811 0 0 0 0 89 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 r n it g y e s h .. i . f .. t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.545 1,619 0 - 1 4 .8 2 6 6 9 0 0 0 0 325 0 0 0 0 0 300 0 0 0 All maturities1 2 2 2 3 4 2 G G R r r e o o d s s e s s m s p p a u l t r e i c o s h n . a .. s s . . . e . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 4 2 3 . . . 5 0 7 9 3 2 1 3 5 2 6 5 2 . , . 8 3 5 5 2 0 5 5 0 1 3 7 2 . . . 3 3 2 3 8 3 1 9 2 1.43 4 1 9 0 3 1 1 . . . 8 0 1 6 0 0 5 0 0 380 0 0 1.607 0 0 1.977 0 0 790 0 0 29 9 5 0 0 Matched transactions 25 Gross sales.......................................................... 511,126 627,350 674.000 79.754 61.427 30.819 32.003 37,251 45,658 51,106 26 Gross purchases.................................................. 510,854 624.192 675.496 78.734 63.062 31.651 30.441 37.295 43,492 52,607 Repurchase agreements 27 Gross purchases................................................... 151,618 107.051 113.902 11.534 6.108 0 1.623 9.458 1,219 3,509 28 Gross sales.......................................................... 152.436 106.968 113.040 11.381 8.137 0 1.246 9,835 1,219 3,509 29 Net change in U.S. government securities........... 7.743 6,896 3.869 516 -4,159 452 422 1.644 -1,376 1,706 Federal Agency Obligations 3 3 3 1 2 0 Ou G G R tr r r e i o o d g s s h e s s t m s p t p a u ra l t r e i n c o s h s n . a a .. s c s . . t . e . . i . s . o . . . . n . . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 1 0 3 7 1 5 3 3 8 1 5 9 3 3 9 4 6 1 6 4 8 5 0 22 0 0 0 0 0 0 0 3 1 0 0 5 0 0 2 0 0 * 2 0 6 0 33 Re G pu ro r s c s h a p s u e r c a h g a re s e e m s.. e .. n .. t . s ............................................ 40.567 37.321 28.895 1.889 652 0 494 1.211 186 691 34 Gross sales.......................................................... 40.885 36,960 28.863 1.767 1.177 0 437 1,268 186 691 35 Net change in federal agency obligations............. -426 681 555 99 -525 -3 42 -58 0 -26 Bankers Acceptances 36 Outright transactions, net..................................... 0 0 0 0 0 0 0 0 0 0 37 Repurchase agreements, net.................................. -366 116 73 253 -776 0 298 -298 0 0 38 Net change in bankers acceptances...................... -366 116 73 253 -776 0 298 -298 0 0 39 Total net change in System Open Market Account............................................................ 6,951 7,693 4,497 868 -5,460 450 762 1,287 -1,376 1,680 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): 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 A ll 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1981 1981 July 1 July 8 July 15 July 22 July 29 May June July Consolidated condition statement Assets 1 Gold certificate account..................................................... 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 2 Special drawing rights certificate account........................ 3,068 3,068 3,068 3,068 3,068 2,818 3,068 3,068 3 Coin..................................................................................... 374 365 365 365 367 396 380 380 Loans 4 To depository institutions............................................. 4,128 2,831 3,286 5,230 1,916 1,366 1,010 1,027 5 Other............................................................................... 0 0 0 0 0 0 0 0 Acceptances 6 Held under repurchase agreements.............................. 0 668 223 621 296 0 0 453 Federal agency obligations 7 Bought outright.............................................................. 8,694 8,694 8,694 8,694 8,694 8,720 8,694 8,694 8 Held under repurchase agreements.............................. 0 537 224 1,304 557 0 0 360 U.S. government securities Bought outright 9 Bills............................................................................. 43,852 46,555 44,181 44,258 43,473 41,887 43,593 44,154 10 Notes........................................................................... 58,818 58,818 59,609 59,609 59,609 58,818 58,818 59,609 11 Bonds......................................................................... 17,606 17,606 17,791 17,791 17,791 17,606 17,606 17,791 12 Total1 ......................................................................... 120,276 122,979 121,581 121,658 120,873 118,311 120,017 121,554 13 Held under repurchase agreements.............................. 0 1,333 708 4,024 1,676 0 0 1,618 14 Total U.S. government securities..................................... 120,276 124,312 122,289 125,682 122,549 118,311 120,017 123,172 15 Total loans and securities................................................... 133,098 137,042 134,716 141,531 134,012 128,397 129,721 133,706 16 Cash items in process of collection.................................. 10,841 9,672 11,108 9,931 8,556 9,096 11,297 7,085 17 Bank premises.................................................................... 474 475 477 481 479 470 475 479 Other assets 18 Denominated in foreign currencies2............................ 6,466 6,478 6,476 6,485 5,812 6,412 6,430 5,739 19 All other......................................................................... 4,061 3,077 3,164 3,299 4,397 2,719 3,802 3,476 20 Total assets......................................................................... 169,536 171,331 170,528 176,314 167,845 161,462 166,327 165,087 Liabilities 21 Federal Reserve notes....................................................... 125,132 126,687 126,425 125,583 125,379 123,251 124,783 124,765 Deposits 22 Depository institutions................................................... 27,021 29,831 28,953 34,769 26,870 24,304 23,626 26,011 23 U.S. Treasury—General account.................................. 3,700 2,853 3,153 3,573 3,193 2,288 2,923 2,922 24 Foreign—Official accounts........................................... 275 292 288 346 211 346 338 285 25 Other............................................................................... 961 521 486 674 1,010 275 536 472 26 Total deposits...................................................................... 31,957 33,497 32,880 39,362 31,284 27,213 27,423 29,690 27 Deferred availability cash items....................................... 7,180 6,515 6,665 6,305 5,496 6,554 8,791 5,834 28 Other liabilities and accrued dividends3.......................... 2,530 1,865 1,780 2,289 2,885 1,744 2,387 1,992 29 Total liabilities.................................................................... 166,799 168,564 167,750 173,539 165,044 158,762 163,384 162,281 Capital Accounts 30 Capital paid in.................................................................... 1,245 1,246 1,249 1,248 1,250 1,238 1,246 1,250 31 Surplus............................................................................... 1,203 1,203 1,203 1,203 1,203 1,203 1,203 1,203 32 Other capital accounts....................................................... 289 318 326 324 348 259 494 353 33 Total liabilities and capital accounts................................ 169,536 171,331 170,528 176,314 167,845 161,462 166,327 165,087 34 Memo: Marketable U.S. government securities held in custody for foreign and international account......... 97,474 96,370 96,262 94,911 95,116 96,635 97,549 95,133 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to bank) . 145,281 145,826 146,289 146,552 146,989 143,936 145,062 147,142 36 Less-held by bank4............................................... 20,149 19,139 19,864 20,969 21,610 20,685 20,279 22,377 37 Federal Reserve notes, net.................................. 125,132 126,687 126,425 125,583 125,379 123,251 124,783 124,765 Collateral for Federal Reserve notes 38 Gold certificate account........................................... 11,154 11,154 11,154 11,154 11,154 11,154 11,154 11,154 39 Special drawing rights certificate account............... 3,068 3,068 3,068 3,068 3,068 2,818 3,068 3,068 40 Other eligible assets................................................. 18 0 0 0 0 0 27 0 41 U.S. government and agency securities................. 110,892 112,465 112,203 111,361 111,157 109,279 110,534 110,543 42 Total collateral.............................................................. 125,132 126,687 126,425 125,583 125,379 123,251 124,783 124,765 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. Treas­ ury. 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 Financial Statistics □ August 1981 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month Type and maturity groupings 1981 1981 July 1 July 8 July 15 July 22 July 29 May 31 June 30 July 31 1Loans—Total..................................................................... 4,128 2,831 3,286 5,230 1,916 1,366 1,010 1,027 2 Within 15 days................................................................ 4,054 2,685 3,119 5,191 1,869 1,317 964 926 3 16 days to 90 days.......................................................... 74 146 167 39 47 49 46 101 4 91 days to 1 year............................................................ 0 0 0 0 0 0 0 0 5Acceptances—Total.......................................................... 0 668 223 621 296 0 0 453 6 Within 15 days................................................................ 0 668 223 621 296 0 0 453 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 9U.S. government securities—Total.................................. 120,276 124,312 122,289 125,682 122,549 118,311 120,017 123,172 10 Within 15 days1.............................................................. 3,070 6,714 3,460 6,044 3,451 3,162 1,714 4,253 11 16 days to 90 days......................................................... 22,779 23,881 25,199 24,391 23,801 21,552 23,875 21,945 12 91 days to 1 year............................................................ 31,742 31,032 30,091 31,708 31,758 30,543 31,742 34,157 13 Over 1 year to 5 years................................................... 33,928 33,928 34,535 34,535 34,535 34,297 33,928 33,813 14 Over 5 years to 10 years............................................... 13,042 13,042 13,106 13,106 13,106 13,042 13,042 13,106 15 Over 10 years.................................................................. 15,715 15,715 15,898 15,898 15,898 15,715 15,716 15,898 16Federal agency obligations—Total.................................... 8,694 9,231 8,918 9,998 9,251 8,720 8,694 9,054 17 Within 15 days1.............................................................. 3 586 310 1,410 622 178 207 425 18 16 days to 90 days.......................................................... 446 525 559 555 647 471 446 647 19 91 days to 1 year........................................................... 1,983 1,858 1,832 1,788 1,717 1,853 1,779 1,717 20 Over 1 year to 5 years................................................... 4,636 4,636 4,612 4,629 4,649 4,593 4,636 4,649 21 Over 5 years to 10 years............................................... 982 982 961 1,015 1,015 982 982 1,015 22 Over 10 years.................................................................. 644 644 644 601 601 643 644 601 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. 1981 Bank group, or type of customer 1978 1979 1980 Feb. Mar. Apr. May June Debits to demand deposits1 (seasonally adjusted) 1 All commercial banks.... ■................................................. 40,297.8 49,775.0 63,013.4 73,174.6 75,487.3 73,621.7 74,800.5 78,745.3 2 Major New York City banks........................................... 15,008.7 18,512.7 25,192.5 29,752.0 30,276.0 29,501.3 29,610.9 32,262.4 3 Other banks....................................................................... 25,289.1 31,262.3 37,820.9 43,422.5 45,211.3 44,120.4 45,189.6 46,482.8 Debits to savings deposits2 (not seasonally adjusted) 4 ATS/NOW3....................................................................... 17.1 83.3 158.4 526.6 668.7 815.4 693.3 808.8 5 Business4........................................................................... 56.7 77.3 93.4 93.4 112.8 112.4 112.0 113.8 6 Others5............................................................................... 359.7 515.2 605.3 553.1 556.8 590.1 518.3 586.4 7 All accounts....................................................................... 432.9 675.8 857.2 1,173.1 1,338.3 1,517.9 1,323.6 1,509.0 Demand deposit turnover1 (seasonally adjusted) 8 All commercial banks........................................................ 139.4 163.5 201.6 253.6 262.9 257.2 260.9 281.3 9 Major New York City banks........................................... 541.9 646.2 813.7 952.6 959.5 1,001.9 975.1 1,085.4 10 Other banks....................................................................... 96.8 113.3 134.3 168.7 176.9 171.8 176.3 185.8 Savings deposit turnover2 (not seasonally adjusted) 11 ATS/NOW3....................................................................... 7.0 7.8 9.7 12.5 14.2 15.2 13.5 15.2 5.1 7.2 9.3 9.8 11.3 11.6 11.7 12.3 13 Others5............................................................................... 1.7 2.7 3.4 3.4 3.5 3.6 3.3 3.7 14 All accounts....................................................................... 1.9 3.1 4.2 5.5 6.1 6.7 6.0 6.9 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 1981 Item 1977 1978 1979 1980 Dec. Dec. Feb. Mar. Apr. May June Seasonally adjusted Measures1 1 Ml-A............................................................................. 331.4 354.8 372.7 387.7 367.2 365.8 366.6 364.9 361.9 2 Ml-B............................................................................. 336.4 364.2 390.5 415.6 421.2 425.8 433.7 431.5 428.8 3 M2................................................................................. 1,296.4 1,404.2 1,525.2 1,669.4 1,695.7 1,718.6r 1,738.1' 1,743.4' 1,749.3 4 M3................................................................................. 1,462.5 1,625.7 1,775.1 1,963.5 2,007.9 2,026.1' 2,044.6' 2,059.0' 2,076.1 5 L2................................................................................... 1,722.7 1,936.5 2,151.1 2,377.4 2,432.3' 2,443.7' 2,455.6' 2,476.0 n.a. Components 6 Currency....................................................................... 88.6 97.4 106.1 116.1 117.2 117.9 118.9 119.8 119.9 7 Demand deposits.......................................................... 239.7 253.9 262.8 267.4 245.8 243.5 243.1 240.7 237.9 8 Travelers checks3........................................................ 3.1 3.5 3.8 4.2 4.2 4.4 4.6 4.4 4.2 9 Savings deposits............................................................ 486.5 475.5 416.5 393.0 370.8 368.3 367.0 361.1' 353.8 10 Small-denomination time deposits4............................ 453.8 533.3 652.7 756.8 783.3 789.4 790.0 798.4' 807.9 11 Large-denomination time deposits5............................ 145.1 194.0 219.7 256.8 273.9 271.0 269.5 277.2' 287.3 Not seasonally adjusted Measures1 12 Ml-A............................................................................. 340.1 364.2 382.5 397.7 358.7 358.9 369.5 359.4 361.1 13 Ml-B............................................................................. 345.1 373.6 400.6 425.9 411.5 417.8 436.7 424.4 428.4 14 M2................................................................................. 1,299.0 1,409.0 1,531.3 1,675.2 1,685.1 1,713.4' 1,745.7r 1,737.5' 1,751.6 15 M3................................................................................. 1,467.7 1,634.6 1,785.5 1,974.0 1,999.8 2,023.6' 2,051.1' 2,052.1' 2,072.7 16 L2................................................................................... 1,726.7 1,943.6 2,158.8 2,384.0 2,425.5' 2,444.5' 2,465.3' 2,471.9 n.a. Components 17 Currency....................................................................... 90.3 99.4 108.3 118.4 115.8 116.8 118.4 119.3 119.9 18 Demand deposits.......................................................... 247.0 261.5 270.8 275.4 238.9 237.9 246.8 235.9 236.9 19 Travelers checks3........................................................ 2.9 3.3 3.5 3.9 4.0 4.2 4.3 4.2 4.3 20 Other checkable deposits6........................................... 5.0 9.4 18.2 28.3 53.0 59.2 67.5 65.3 67.5 21 Overnight RPs and Eurodollars7................................ 18.6 23.9 25.4 32.4 31.9 33.3r 34.3' 38.3' 39.7 22 Money market mutual funds....................................... 3.8 10.3 43.6 75.8 92.4 105.6 117.1 118.1 122.8 23 Savings deposits............................................................ 483.1 472.6 413.9 390.2 365.6 365.7 366.4 359.7' 355.2 24 Small-denomination time deposits4............................ 451.3 531.7 651.4 755.2 787.7 794.8 795.2 801.0' 809.1 25 Large-denomination time deposits5............................ 147.7 198.1 223.9 261.4 276.3 273.8 268.3 276.3' 281.6 1. Composition of the money stock measures is as follows: 4. Small-denomination time deposits are those issued in amounts of less than Ml-A: Averages of daily figures for (1) demand deposits at all commercial banks $100,000. other than those due to domestic banks, the U.S. government, and foreign banks 5. Large-denomination time deposits are those issued in amounts of $100,000 and official institutions less cash items in the process of collection and Federal or more and are net of the holdings of domestic banks, thrift institutions, the U.S. Reserve float; (2) currency outside the Treasury, Federal Reserve Banks, and the government, money market mutual funds, and foreign banks and official institu­ vaults of commercial banks; and (3) travelers checks of nonbank issuers. tions. Ml-B: Ml-A plus negotiable order of withdrawal (NOW) and automatic transfer 6. Includes ATS and NOW balances at all institutions, credit union share draft service (ATS) accounts at banks and thrift institutions, credit union share draft balances, and demand deposits at mutual savings banks. accounts, ana demand deposits at mutual savings banks. 7. Overnight (and continuing contract) RPs are those issued by commercial M2: Ml-B plus savings and small-denomination time deposits at all depository banks to the nonbank public, and overnight Eurodollars are those issued by Ca­ institutions, overnight repurchase agreements at commercial banks, overnight Eu­ ribbean branches of member banks to U.S. nonbank customers. rodollars held by U.S. residents other than banks at Caribbean branches of member banks, and money market mutual fund shares. Note. Latest monthly and weekly figures are available from the Board’s H.6(508) M3: M2 plus large-denomination time deposits at all depository institutions and release. Back data are available from the Banking Section, Division of Research term RPs at commercial banks and savings and loan associations. and Statistics. 2. L: M3 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. 3. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Financial Statistics □ August 1981 1.22 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MEMBER BANK DEPOSITS1 Billions of dollars, averages of daily figures 1980 1981 1978 1979 1980 Item Dec. Dec. Dec. Nov.2 Dec. Jan. Feb. Mar. Apr. May June Seasonally adjusted 1 Total reserves3................................................................ 39.76 40.25 40.25 40.81 2 Nonborrowed reserves................................................... 40.29 41.98 38.44 39.17 38.44 38.71 38.45 39.25 38.91 38.58 38.80 3 Required reserves.......................................................... 40.93 43.13 39.58 40.73 39.58 39.56 39.57 39.87 40.10 40.55 40.50 4 Monetary base4.............................................................. 142.2 153.7 159.8 160.7 159.8 160.1 160.6 161.3 162.2 163.6 163.8 5 Member bank deposits subject to reserve requirements5 616.1 644.5 701.8 694.3 701.8 703.8 704.3 703.4 711.2 715.0 720.8 6 Time and savings............................................................ 428.7 451.2 485.6 475.4 485.6 517.5 523.4 524.7 531.1 538.1 545.6 Demand 7 Private......................................................................... 185.1 191.5 196.0 198.1 196.0 184.1 178.8 176.7 177.4 174.7 173.3 8 U.S; government........................................................ 2.2 1.8 1.9 2.2 1.9 2.3 2.1 2.0 2.8 2.2 1.9 Not seasonally adjusted 9 Monetary base4......................................................................... 144.6 156.2 162.5 161.5 162.5 161.0 158.9 159.6 161.7 162.7 163.3 10 Member bank deposits subject to reserve requirements5....... 624.0 652.7 710.3 694.6 710.3 712.6 701.5 702.9 713.5 710.0 719.7 11 Time and savings....................................................................... 429.6 452.1 486.5 493.0 505.0 520.6 524.9 527.8 531.6 538.1 545.0 Demand 12 Private.................................................................................... 191.9 198.6 203.2 199.6 203.3 189.9 174.5 173.0 178.9 169.8 172.2 13 U.S. government................................................................... 2.5 2.0 2.1 1.9 2.1 2.1 2.0 2.1 3.0 2.1 2.5 1. Reserves of depository institutions series reflect actual reserve requirement 2. Reserve measures for November reflect increases in required reserves asso­ percentages with no adjustment to eliminate the effect of changes in Regulations ciated with the reduction of weekend avoidance activities of a few large banks. D and M. Before Nov. 13, 1980, the date of implementation of the Monetary The reduction in these activities lead to essentially a one-time increase in the Control Act, only the reserves of commercial banks that were members of the average level of required reserves that need to be held for a given level of deposits Federal Reserve System were included in the series. Since that date the series entering the money supply. In November, this increase in required reserves is include the reserves of all depository institutions. In conjunction with the imple­ estimated at $550 million to $600 million. mentation of the act, required reserves of member banks were reduced about $4.3 3. Reserve balances with Federal Reserve Banks plus vault cash at institutions billion and required reserves of other depository institutions were increased about with required reserve balances plus vault cash equal to required reserves at other $1.4 billion. Effective Oct. 11, 1979, an 8 percentage point marginal reserve re­ institutions. quirement was imposed on “Managed Liabilities.” This action raised required 4. Includes reserve balances at Federal Reserve Banks in the current week plus reserves about $320 million. Effective Mar. 12, 1980, the 8 percentage point mar­ vault cash held two weeks earlier used to satisfy reserve requirements at all ginal reserve requirement was raised to 10 percentage points. In addition the base depository institutions plus currency outside the U.S. Treasury, Federal Reserve upon which the marginal reserve requirement was calculated was reduced. This Banks, the vaults of depository institutions, and surplus vault cash at depository action increased required reserves about $1.7 million in the week ending Apr. 2, institutions. 1980. Effective May 29, 1980, the marginal reserve requirement was reduced from 5. Includes total time and savings deposits and net demand deposits as defined 10 to 5 percentage points and the base upon which the marginal reserve requirement by Regulation D. Private demand deposits include all demand deposits except was calculated was raised. This action reduced required reserves about $980 million those due to the U.S. government, less cash items in process of collection and in the week ending June 18, 1980. Effective July 24, 1980, the 5 percent marginal demand balances due from domestic commercial banks. reserve requirement on managed liabilities and the 2 percent supplementary reserve requirement against large time deposits were removed. These actions reduced Note. Latest monthly and weekly figures are available from the Board’s H.3(502) required reserves about $3.2 billion. statistical release. Back data and estimates of the impact on required reserves and changes in reserve requirements are available from the Banking 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 Banks' Billions of dollars; averages of Wednesday figures 1981 1981 1978 1979 1980 1978 1979 1980 Category Dec. Dec. Dec. Dec. Dec. Dec. May June May June Seasonally adjusted Not seasonally adjusted 1 Total loans and securities2............................ 1,013.4' 1,134.64 1,237.25 1,279.3 1,285.4 1,022.53 1,145.04 1,248.8s 1,276.1 1,289.4 2 U.S. Treasury securities................................ 93.3 93.8 110.7 117.5 119.3 94.5 95.0 112.1 118.2 119.7 3 Other securities............................................. 173.23 191.8 213.9 218.7 219.0 173.93 192.6 214.8 219.1 219.6 4 Total loans and leases2.................................. 746.93 848.94 912.7s 943.1 947.2 754.21 857.44 922.0s 938.7 950.0 5 Commercial and industrial loans............. 246.16 291.14 324.9-'' 334.67 338.7 247.76 293.04 327.05 335.47 340.6 6 Real estate loans....................................... 210.5 241.34 260.6s 270.4 271.7 210.9 241.84 261.Is 269.3 271.4 7 Loans to individuals.................................. 164.7 184.9 175.2 173.9 174.1 165.6 186.0 176.2 172.5 173.6 8 Security loans............................................. 19.3 18.6 17.6 20.1 20.5 20.6 19.8 18.8 19.2 20.6 9 Loans to nonbank financial institutions .. 27.1s 28.84 28.75 29.3 29.3 27.68 29.34 29.2 s 29.1 29.5 10 Agricultural loans..................................... 28.2 31.1 31.6 32.1 32.2 28.1 30.9 31.4 32.0 32.4 11 Lease financing receivables...................... 7.5 9.3 10.9 12.1 12.2 7.5 9.3 10.9 12.1 12.2 12 All other loans........................................... 43.63 44.0 63.3 70.7 68.5 46.23 47.3 67.3 69.2 69.7 Memo: 13 Total loans and securities plus loans sold2 9 1,017.13 1J37.64 10 1,239.9s 1,282.1 1,288.3 1,026.23 1,148.04 10 1,251.5s 1,278.9 1,292.2 14 Total loans plus loans sold2,9...................... 750.63 851.94-10 915.4 s 945.8 950.0 757.93 860.44-10 924.7s 941.5 952.9 15 Total loans sold to affiliates9...................... 3.7 3.0810 2.7 2.8 2.8 3.7 3.08-1’1 2.7 2.8 2.8 16 Commercial and industrial loans plus loans sold9...................................... ............... 248.06-11 293.14-10 326.6-s 336.57 340.8 249.66-11 295.04-10 328.85 337.37 342.7 17 Commercial and industrial loans sold9 ... 1.9" 2.0I(I 1.8 1.9 2.0 1.9*1 2.010 1.8 1.9 2.0 18 Acceptances held..................................... 6.6 8.2 8.2 9.6 10.0 7.3 9.1 8.8 9.3 10.0 19 Other commercial and industrial loans... 239.5 282.9 316.7 325.0 328.8 240.4 283.9 318.2 326.1 330.7 20 To U.S. addressees12............................ 226.0 264.1 295.2 300.2 304.0 225.9 264.1 295.2 301.6 306.1 21 To non-U.S. addressees........................ 13.5 18.8 21.5 24.8 24.7 14.5 19.8 23.0 24.5 24.6 22 Loans to foreign banks................................ 21.5 18.5 23.1 23.5 21.8 23.2 20.0 24.8 22.7 22.4 1. Includes domestically chartered banks; U.S. branches and agencies of foreign 8. As of Dec. 1. 1978, nonbank financial loans were reduced $0.1 billion as the banks. New York investment companies majority owned by foreign banks, and result of reclassification. Edge Act corporations owned by domestically chartered and foreign banks. 9. Loans sold are those sold outright to a bank's own foreign branches, non­ 2. Excludes loans to commercial banks in the United States. consolidated nonbank affiliates of the bank, the bank's holding company (if not a 3. As of Dec. 31, 1978, total loans and securities were reduced by $0.1 billion. bank), and nonconsolidated nonbank subsidiaries of the holding company. “‘Other securities” were increased by $1.5 billion and total loans were reduced by 10. As of Dec. 1. 1979. loans sold to affiliates were reduced $800 million and $1.6 billion largely as the result of reclassifications of certain tax-exempt obligations. commercial and industrial loans sold were reduced $700 million due to corrections Most of the loan reduction was in “all other loans." of two banks in New York City. 4. As of Jan. 3, 1979, as the result of reclassifications, total loans and securities 11. As of Dec. 31. 1978. commercial and industrial loans sold outright were and total loans were increased by $0.6 billion. Business loans were increased by increased $0.7 billion as the result of reclassifications, but $0.1 billion of this amount $0.4 billion and real estate loans by $0.5 billion. Nonbank financial loans were was offset by a balance sheet reduction of $0.1 billion as noted above. reduced by $0.3 billion. 12. United States includes the 50 states and the District of Columbia. 5. Absorption of a nonbank affiliate by a large commercial bank added the following to February figures: total loans and securities. $1.0 billion; total loans Note. Data are prorated averages of Wednesday estimates for domestically and leases, $1.0 billion; commercial and industrial loans. $.5 billion: real estate chartered banks, based on weekly reports of a sample of domestically chartered loans. $.1 billion; nonbank financial. $.1 billion. hanks and quarterly reports of all domestically chartered banks. For foreign-related 6. As of Dec. 31. 1978, commercial and industrial loans were reduced $0.1 billion institutions, data are averages of month-end estimates based on weekly reports as a result of reclassifications. from large agencies and branches and quarterly reports from all agencies, branches, 7. An accounting procedure change bv one bank reduced commercial and in­ investment companies, and Edge Act corporations engaged in banking. Data have dustrial loans by $0.1 billion as of Apr. 1. 1981. been revised due to benchmarking to the June. September, and December 1980. and March. 1981 call reports for foreign-related institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics □ August 1981 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars December outstanding Outstanding in 1980 and 1981 Source 1977 1978 1979 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Total nondeposit funds 1 Seasonally adjusted2....................................... 61.5 91.2 121.1 119.9 116.9 120.4' 124.5r 122.0' 117.0' 111.2' 117.6' 119.7 2 Not seasonally adjusted.................................... 60.1 90.2 119.8 120.8 120.1 119.9 122.0' 121.2' 116.7' 111.8' 122.0' 120.4 Federal funds, RPs. and other borrowings from non-banks3 3 Seasonally adjusted......................................... 58.4 80.7 90.0 105.7 105.4 109.5' 113.5r 110.9 110.7 109.4 106.7 111.8' 4 Not seasonally adjusted.................................... 57.0 79.7 88.7 106.6 108.6 109.0 111.0' 110.2 110.5 109.0 111.0 112.6 5 Net balances due to foreign-related institutions. not seasonally adjusted................................ - 1.5 6.8 28.1 11.4 8.9 8.2 8.2' 8.3' 3.5' -0.9' 8.2' 5.0 6 Loans sold to affiliates, not seasonally adjusted4,5.................................................... 4.7 3.7 3.0 2.8 2.6 2.7 2.8 2.8 2.8 2.7 2.8 2.8 Mlmo 7 Domestically chartered banks net positions with own foreign branches, not seasonally adjusted6...................................................... -12.5 -10.2 6.5 -12.9 -14.2 -14.7 -16.2 -14.7 -16.9 -21.3' -13.6' -14.6 8 Gross due from balances.................................. 21.1 24.9 22.8 38.3 37.3 37.5 37.5 36.4 38.9 43.1 43.6 42.7 9 Gross due to balances...................................... 8.6 14.7 29.3 25.5 23.1 22.8 21.2 21.7 22.0 21.8' 30.0' 28.0 10 Foreign-related institutions net positions with directly related institutions, not seasonally adjusted7...................................................... 10.9 17.0 21.6 24.3 23.1 22.9 24.4' 22.9' 20.5' 20.4' 21.8' 19.6 11 Gross due from balances.................................. 10.7 14.3 28.9 30.8 31.0 32.5 31.5' 31.8' 31.9' 33.8' 34.9' 35.5 12 Gross due to balances...................................... 21.7 31.3 50.5 55.2 54.1 55.4 55.9 54.7' 52.3'' 54.1' 56.7' 55.1 Security RP borrowings 13 Seasonally adjusted”....................................... 36.0 44.8 49.2 59.7 58.8 63.4 68.7 67.0 67.1 67.0 64.4 71.1 14 Not seasonally adjusted.................................... 35.1 43.6 47.9 59.5 60.9 61.7 65.0 65.2 65.8 65.6 67.7 70.8 U.S. Treasury demand balances9 15 Seasonally adjusted......................................... 4.4 8.7 8.9 11.5 8.1 8.4 6.9 8.2 11.7 12.3 14.2 10.8 16 Not seasonally adjusted.................................... 5.1 10.3 9.7 12.6 6.7 9.0 8.0 8.1 10.3 12.1 12.4 12.3 Time deposits. $100,000 or more10 17 Seasonally adjusted......................................... 162.0 213.0 227.1 247.8 254.9 265.8 277.0 282.5 281.1 284.3 294.8 303.1 18 Not seasonally adjusted.................................... 165.4 217.9 232.8 246.8 257.9 272.4 282.0 287.0 285.9 283.7 293.6 297.9 1. Commercial banks are those in the 50 states and the District of Columbia 7. Includes averages of current and previous month-end data until August 1979; with national or state charters plus agencies and branches of foreign banks. New beginning September 1979 averages of daily data. York investment companies majority owned by foreign banks, and Edge Act cor­ 8. Based on daily average data reported by 122 large banks beginning February porations owned by domestically chartered and foreign banks. 1980 and 46 banks before February 1980. 2. Includes seasonally adjusted federal funds. RPs. and other borrowings from 9. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. In­ commercial banks. Averages of daily data. cludes averages of Wednesday data for domestically chartered banks and averages 10. Averages of Wednesday figures. of current and previous month-end data for foreign-related institutions. 3. Other borrowings are borrowings on any instrument, such as a promissory Note. Movement of federal funds. RPs. and other borrowings from nonbanks note or due bill, given for the purpose of borrowing money for the banking business. (lines 3 and 4) is based on fluctuations in security RP borrowings (lines 13 and 14) This includes borrowings from Federal Reserve Banks and from foreign banks, and borrowings from unaffiliated foreign sources (not shown) after October 1980. term federal funds, overdrawn due from bank balances, loan RPs. and participa­ U.S. Treasury demand balances (lines 15 and 16) and time deposits of $100,000 tions in pooled loans. Includes averages of daily figures for member banks and or more (lines 17 and 18) have revised beginning July 1980 to reflect benchmarking averages of current and previous month-end data for foreign-related institutions. to the June. September and December 1980 call reports. Data have revised be­ 4. Loans initially booked by the bank and later sold to affiliates that are still ginning July 1980. for total nondeposit funds, federal funds. RPs. and other bor­ held by affiliates. Averages of Wednesday data. rowings from nonbanks, and net balances due to related foreign institutions due 5. As of Dec. 1, 1979. loans sold to affiliates were reduced $800 million due to to benchmarking to the June. September, and December 1980. and March 1981 corrections of two New York City banks. call reports for foreign-related institutions. 6. Averages of daily figures for member and nonmember banks. Before October 1980 nonmember banks were interpolated from quarterly call report data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A 17 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars except for number of banks 1980 1981 Account Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Domestically Chartered Commercial Banks1 1 Loans and securities, excluding interbank......................................... 1,117.9 1,134.8 1,150.8 1,177.1 1,166.0 1,167.0 1,169.5 1,187.8 1,194.6 1,205.3 1,213.2 2 Loans, excluding interbank..................... 809.1 821.6 832.8 851.4 840.2 839.0 840.6 855.4 862.4 872.2 879.2 3 Commercial and industrial................. 263.9 269.0 275.7 281.5 277.6 276.3 277.5 285.4 287.9 293.1 295.8 4 Other.................................................... 545.2 552.6 557.1 569.9 562.6 562.7 563.1 570.1 574.5 579.1 583.4 5 U.S. Treasury securities.......................... 103.2 104.4 107.1 111.2 112.0 113.7 112.9 115.8 114.9 116.1 115.8 6 Other securities....................................... 205.6 208.9 210.9 214.6 213.8 214.3 216.0 216.6 217.3 216.9 218.2 7 Cash assets, total..................................... 156.6 155.9 175.6 194.2 159.3 165.9 167.9 181.8 180.3 169.8 161.1 8 Currency and coin................................ 17.8 18.3 16.9 19.9 18.7 18.6 17.8 18.8 19.5 19.1 19.6 9 Reserves with Federal Reserve Banks 31.1 31.7 30.4 28.2 25.2 30.4 31.8 38.3 25.2 25.4 27.0 10 Balances with depository institutions . 46.8 47.2 56.1 63.0 54.9 54.6 55.1 57.3 62.0 60.7 56.8 11 Cash items in process of collection ... 60.9 58.8 72.2 83.0 60.5 62.3 63.3 67.4 73.6 64.6 57.7 12 Other assets2........................................... 154.4 151.3 151.3 165.6 155.8 160.1 163.4 167.7 158.8 168.6 158.8 13 Total assets/total liabilities and capital... 1,428.9 1,442.1 1,477.7 1,537.0 1,481.0 1,493.0 1,500.9 1,537.3 1,533.7 1,543.7 1,533.2 14 Deposits................................................... 1,077.2 1,092.9 1,126.2 1,187.4 1,128.7 1,132.0 1,136.5 1,151.7 1,170.3 1,165.9 1,160.8 15 Demand............................................... 369.7 375.7 393.0 432.2 351.1 345.5 345.3 356.8 360.7 350.9 333.6 16 Savings................................................. 209.1 210.9 209.5 201.3 211.9 214.3 220.5 222.7 220.9 220.7 219.8 17 Time.................................................... 498.5 506.2 523.7 553.8 565.7 572.3 570.7 572.2 588.7 594.3 607.3 18 Borrowings............................................... 163.7 161.7 157.3 156.4 156.4 163.2 163.8 179.5 155.7 169.3 159.3 19 Other liabilities....................................... 75.6 74.7 78.1 79.0 76.7 80.3 80.6 81.8 82.3 81.8 86.3 20 Residual (assets less liabilities)............... 112.3 112.7 116.1 114.2 119.3 117.5 120.0 124.3 125.4 126.7 126.7 Memo: 21 U.S. Treasury note balances included in borrowing......................................... 15.7 11.5 4.4 9.5 9.5 8.5 10.2 16.9 5.5 17.4 7.2 22 Number of banks................................... 14,678 14,760 14,692 14,693 14,689 14,696 14,701 14,713 14,719 14,719 14,719 All Commercial Banking Institutions3 23 Loans and securities, excluding interbank......................................... 1,194.3 1,262.4 1,253.8 24 Loans, excluding interbank..................... 881.5 932.5 920.9 25 Commercial and industrial................. 308.1 330.6 329.3 26 Other.................................................... 573.4 601.9 591.6 27 U.S. Treasury securities.......................... 105.6 113.6 115.2 28 Other securities....................................... 207.2 216.3 217.7 29 Cash assets, total ............. . . 178.2 218.6 193.6 30 Currency and coin............................... 17.8 20.0 17.8 31 Reserves with Federal Reserve Banks 31.6 29.0 32.7 32 Balances with depository institutions . 66.4 85.0 77.9 33 Cash items in process of collection ... 62.4 84.7 65.3 34 Other assets2........................................... 204.3 222.7 225.5 35 Total assets/total liabilities and capital... 1,576.8 1,703.7 1,673.0 36 Deposits................................................... 1,122.1 1,239.9 1,190.6 37 Demand............................................... 388.8 453.6 367.4 38 Savings................................................. 209.5 201.6 220.7 39 Time.................................................... 523.9 584.7 602.5 40 Borrowings............................................... 211.0 210.4 223.3 41 Other liabilities........................................ 129.7 135.5 137.2 42 Residual (assets less liabilities) ......... 113.9 117.9 121.9 Memo: 43 U.S. Treasury note balances included in borrowing......................................... 15.7 9.5 10.2 44 Number of banks.................................... 15,084 15,120 15,147 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. Other assets include loans to U.S. commercial banks. other banking institutions are for the last day of the quarter. 3. Commercial banking institutions include domestically chartered commercial banks, branches and agencies of foreign banks, Edge Act and Agreement corpo­ rations, and New York State foreign investment corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics □ August 1981 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 1981 Account June 3 June 10 June 17 June 24 July IP July 8 p July 15p July 22* July 29 p 1 Cash items in process of collection.............................. 57,966 56,580 66,611 53,270 65,919 53,555 57,633 51,889 46,657 2 Demand deposits due from banks in the United States ..................................................................... 21,946 19,478 19,027 21,512 22,805 21,661 22,527 20,096 14,748 3 All other cash and due from depository institutions.. 36,154 30,776 37,279 31,533 31,724 35,642 35,310 39,123 33,297 4 Total loans and securities............................................. 571,420 572,730 573,191 571,953 584,064 580,247 582,508 571,433 573,292 Securities 5 U.S. Treasury securities............................................... 42,128 43,334 43,138 40,945 40,612 41,839 41,068 40,244 40,657 6 Trading account........................................................ 7,685 8,879 8,836 7,071 6,793 8,148 7,411 6,843 7,247 7 Investment account, by maturity............................ 34,444 34,455 34,303 33,874 33,819 33,691 33,656 33,401 33,410 8 One year or less.................................................... 10,627 10,788 10,758 10,506 10,550 10,382 10,296 9,940 10,019 9 Over one through five years................................ 19,994 19,840 19,708 19,596 19,466 19,473 19,462 19,543 19,553 10 Over five years...................................................... 3,823 3,827 3,836 3,772 3,802 3,836 3,899 3,918 3,837 11 Other securities............................................................ 78,914 78,092 77,593 77,008 78,930 77,651 77,311 77,282 77,475 12 Trading account........................................................ 3,711 2,945 2,723 2,353 4,650 3,421 3,389 3,252 3,246 13 Investment account................................................... 75,202 75,148 74,870 74,655 74,280 74,230 73,922 74,030 74,229 14 U.S. government agencies.................................... 16,556 16,406 16,374 16,266 16,409 16,345 16,115 16,069 16,154 15 States and political subdivision, by maturity---- 55,882 55,970 55,735 55,670 55,166 55,166 55,148 55,302 55,385 16 One year or less................................................. 7,733 7,767 7,502 7,406 7,034 7,077 7,049 7,087 7,051 17 Over one year................................................... 48,149 48,203 48,233 48,264 48,132 48,089 48,099 48,215 48,334 18 Other bonds, corporate stocks and securities.... 2,764 2,771 2,761 2,720 2,704 2,719 2,659 2,659 2,690 Loans 19 Federal funds sold1...................................................... 28,498 32,141 27,334 29,748 28,703 30,822 33,974 25,780 26,331 20 To commercial banks............................................... 19,764 22,469 19,136 20,753 20,157 23,298 26,696 18,385 19,172 21 To nonbank brokers and dealers in securities....... 6,713 6,426 6,266 6,422 6,695 5,598 5,192 5,371 5,261 22 To others................................................................... 2,021 3,246 1,932 2,572 1,851 1,926 2,085 2,024 1,898 23 Other loans, gross........................................................ 433,858 431,209 437,230 436,339 447,847 442,003 442,273 440,278 441,000 24 Commercial and industrial....................................... 176,639 176,005 178,296 178,750 182,505 181,553 180,770 180,515 180,479 25 Bankers acceptances and commercial paper....... 4,209 4,217 4,585 4,878 5,720 5,015 4,822 4,165 4,397 26 All other................................................................ 172,430 171,788 173,711 173,873 176,784 176,538 175,948 176,349 176,082 27 U.S. addressees................................................. 165,033 164,226 166,140 166,320 169,103 168,971 168,321 168,810 168,531 28 Non-U.S. addressees......................................... 7,397 7,562 7,570 7,553 7,682 7,567 7,627 7,540 7,551 29 Real estate................................................................... 116,635 116,918 117,237 117,519 117,749 117,800 118,246 118,480 118,697 30 To individuals for personal expenditures............... 70,708 70,720 70,875 71,026 71,493 71,277 71,249 71,352 71,688 To financial institutions 31 Commercial banks in the United States............. 5,274 4,870 5,321 5,581 6,232 5,761 6,219 6,047 5,558 32 Banks in foreign countries.................................... 8,783 8,746 8,741 8,386 9,385 9,360 9,548 8,767 9,216 33 Sales finance, personal finance companies, etc .. 9,841 9,894 9,822 9,809 10,545 9,909 9,737 9,864 10,085 34 Other financial institutions.................................... 15,966 15,907 16,114 15,948 16,225 16,129 15,906 15,922 15,844 35 To nonbank brokers and dealers in securities....... 7,796 6,105 7,866 6,906 9,555 7,116 7,337 6,311 6,617 36 To others for purchasing and carrying securities2 .. 2,592 2,616 2,539 2,509 2,545 2,535 2,539 2,539 2,543 37 To finance agricultural............................................. 5,823 5,821 5,844 5,902 5,946 5,990 5,982 5,981 5,975 38 All other................................................................... 13,799 13,604 14,575 14,001 15,666 14,572 14,738 14,500 14,299 39 Less: Unearned income............................................... 5,838 5,880 5,914 5,921 5,878 5,918 5,948 5,953 5,980 40 Loan loss reserve............................................... 6,139 6,166 6,192 6,166 6,150 6,150 6,169 6,199 6,191 41 Other loans, net............................................................ 421,880 419,162 425,125 424,252 435,819 429,935 430,155 428,126 428,829 42 Lease financing receivables......................................... 10,242 10,259 10,269 10,272 10,270 10,362 10,395 10,381 10,410 43 All other assets............................................................ 87,780 90,940 91,260 90,206 92,981 91,514 89,859 87,112 87,270 44 Total assets................................................................... 785,509 780,764 797,637 778,745 807,763 792,982 798,233 780,034 765,674 Deposits 45 Demand deposits.......................................................... 195,125 192,070 200,130 188,291 209,696 191,354 203,375 182,912 173,405 46 Mutual savings banks............................................... 689 495 521 517 737 598 694 492 535 47 Individuals, partnerships, and corporations........... 130,743 131,013 133,582 125,958 140,436 129,640 133,779 124,507 122,049 48 States and political subdivisions.............................. 4,262 4,306 4,734 4,427 5,179 4,504 4,853 4,146 4,163 49 U.S. government...................................................... 3,312 1,913 2,098 3,192 1,082 1,971 3,005 1,860 1,784 50 Commercial banks in the United States................. 36,735 35,232 34,059 36,137 41,213 36,132 41,194 34,893 27,901 51 Banks in foreign countries....................................... 8,674 8,488 9,408 9,126 8,392 8,450 9,389 7,637 8,693 52 Foreign governments and official institutions......... 1,725 1,990 1,623 1,492 1,619 1,760 1,906 1,305 1,304 53 Certified and officers’ checks.................................. 8,985 8,633 14,105 7,441 11,038 8,299 8,554 8,072 6,975 54 Time and savings deposits........................................... 334,602 333,130 331,623 334,260 337,390 337,754 337,954 339,331 341,228 55 Savings....................................................................... 77,797 77,822 77,719 76,796 78,250 78,708 77,942 77,305 76,373 56 Individuals and nonprofit organizations............. 73,903 73,953 73,920 72,923 74,373 74,910 74,153 73,631 72,730 57 Partnerships and corporations operated for profit.............................................................. 3,244 3,273 3,180 3,194 3,203 3,192 3,150 3,141 3,111 58 Domestic governmental units.............................. 633 579 599 657 656 586 618 509 509 59 All other................................................................ 16 18 21 22 18 20 21 23 22 60 Time........................................................................... 256,805 255,308 253,904 257,463 259,139 259,046 260,012 262,027 264,855 61 Individuals, partnerships, and corporations....... 221,968 220,914 220,197 223,663 226,109 225,905 228,004 229,749 232,390 62 States and political subdivisions.......................... 19,852 19,626 19,250 19,268 18,446 18,460 18,246 18,505 18,591 63 U.S. government................................................... 258 240 264 271 268 279 268 278 281 64 Commercial banks in the United States............. 8,394 8,272 7,934 8,020 8,121 8,040 8,032 8,041 8,304 65 Foreign governments, official institutions, and banks .............................................................. 6,333 6,256 6,258 6,241 6,195 6,362 5,462 5,454 5,289 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks............... 4,843 2,669 5,447 616 3,128 2,145 2,521 4,147 653 67 Treasury tax-and-loan notes.................................... 2,023 2,536 11,352 12,653 9,542 5,141 4,000 5,133 4,891 68 All other liabilities for borrowed money3............... 128,969 132,092 130,608 124,632 128,273 138,916 132,288 127,754 123,490 69 Other liabilities and subordinated notes and debentures.............................................................. 67,971 66,213 66,883 66,401 67,549 65,304 65,944 68,692 69,896 70 Total liabilities.............................................................. 733,533 728,710 746,043 726,854 755,578 740,615 746,082 727,969 713,563 71 Residual (total assets minus total liabilities)4............. 51,976 52,054 51,594 51,891 52,184 52,367 52,151 52,064 52,110 1. Includes securities purchased under agreements to resell. 4. Not a measure of equity capital for use in capital adequacy analysis or for 2. Other than financial institutions and brokers and dealers. other analytic uses. 3. Includes federal funds purchased and securities sold under agreements to repurchase; for information on these liabilities at banks with assets of $1 billion or Digitized for FmRoAreS oEn RDe c. 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 Account June 3 June 10 June 17 June 24 July IP July 8p July 15p July 22 p July 29p 1 Cash items in process of collection.............................. 54,959 53,988 63,416 50,239 62,670 50,798 54,629 49,201 44,161 2 Demand deposits due from banks in the United States ..................................................................... 21,301 18,943 18,424 20,744 22,078 20,973 21,788 19,493 14,085 3 All other cash and due from depository institutions.. 34,016 28,755 34,846 29,374 29,583 33,707 33,031 36,766 31,074 4 Total loans and securities............................................. 533,790 534,896 535,397 534,118 545,810 541,355 544,193 533,410 535,294 Securities 5 U.S. Treasury securities............................................... 38,733 39,925 39,707 37,526 37,206 38,447 37,669 36,846 37,266 6 Trading account........................................................ 7,613 8,801 8,750 6,993 6,728 8,073 7,342 6,766 7,158 7 Investment account, by maturity............................ 31,120 31,124 30,958 30,533 30,478 30,375 30,327 30,080 30,108 8 One year or less.................................................... 9,790 9,925 9,884 9,632 9,657 9,460 9,371 9,022 9,125 9 Over one through five years................................ 17,881 17,742 17,607 17,498 17,380 17,438 17,417 17,499 17,505 10 Over five years...................................................... 3,449 3,457 3,467 3,403 3,441 3,477 3,539 3,558 3,478 11 Other securities............................................................ 72,593 71,818 71,358 70,748 72,641 71,379 71,056 71,005 71,159 12 Trading account........................................................ 3,632 2,886 2,659 2,284 4,558 3,364 3,327 3,197 3,174 13 Investment account................................................... 68,961 68,932 68,699 68,464 68,082 68,016 67,728 67,808 67,985 14 U.S. government agencies.................................... 15,372 15,222 15,190 15,082 15,211 15,135 14,920 14,869 14,942 15 States and political subdivision, by maturity .... 51,001 51,115 50,925 50,838 50,344 50,338 50,325 50,456 50,528 16 One year or less................................................. 6,970 6,992 6,772 6,668 6,299 6,333 6,305 6,327 6,290 17 Over one year................................................... 44,031 44,123 44,153 44,170 44,046 44,006 44,020 44,129 44,238 18 Other bonds, corporate stocks and securities---- 2,588 2,594 2,584 2,543 2,527 2,542 2,484 2,484 2,515 Loans 19 Federal funds sold1...................................................... 25,385 28,695 24,045 26,413 25,542 26,826 30,599 22,696 23,358 20 To commercial banks............................................... 17,135 19,543 16,328 17,971 17,519 19,879 23,895 15,803 16,670 21 To nonbank brokers and dealers in securities....... 6,252 5,928 5,797 5,900 6,203 5,054 4,653 4,894 4,816 22 To others.................................................................... 1,998 3,224 1,919 2,542 1,820 1,893 2,051 1,998 1,872 23 Other loans, gross........................................................ 408,068 405,513 411,393 410,520 421,439 415,755 415,963 413,988 414,656 24 Commercial and industrial....................................... 167,730 167,120 169,429 169,922 173,535 172,595 171,769 171,517 171,482 25 Bankers acceptances and commercial paper....... 4,028 4,040 4,404 4,701 5,529 4,830 4,634 3,977 4,224 26 All other................................................................ 163,702 163,080 165,025 165,221 168,007 167,765 167,135 167,540 167,258 27 U.S. addressees................................................. 156,373 155,587 157,524 157,739 160,393 160,267 159,578 160,072 159,779 28 Non-U.S. addressees......................................... 7,329 7,494 7,500 7,482 7,614 7,498 7,557 7,467 7,479 29 Real estate................................................................ 110,103 110,382 110,669 110,944 111,169 111,211 111,634 111,876 112,076 30 To individuals for personal expenditures............... 62,196 62,198 62,343 62,462 62,658 62,457 62,452 62,554 62,858 To financial institutions 31 Commercial banks in the United States............. 5,165 4,764 5,173 5,434 6,080 5,622 6,073 5,936 5,445 32 Banks in foreign countries.................................... 8,700 8,662 8,671 8,316 9,261 9,290 9,475 8,674 9,132 33 Sales finance, personal finance companies, etc .. 9,692 9,746 9,684 9,681 10,406 9,769 9,589 9,718 9,938 34 Other financial institutions.................................... 15,608 15,542 15,734 15,562 15,843 15,755 15,538 15,542 15,458 35 To nonbank brokers and dealers in securities....... 7,710 6,017 7,774 6,817 9,491 7,045 7,267 6,239 6,542 36 To others for purchasing and carrying securities2 .. 2,393 2,418 2,336 2,306 2,312 2,299 2,304 2,312 2,317 37 To finance agricultural production.......................... 5,679 5,679 5,697 5,755 5,798 5,839 5,829 5,825 5,819 38 All other.................................................................... 13,092 12,985 13,883 13,322 14,886 13,873 14,033 13,794 13,588 39 Less: Unearned income............................................... 5,207 5,246 5,274 5,277 5,240 5,278 5,304 5,304 5,333 40 Loan loss reserve............................................... 5,783 5,809 5,833 5,811 5,777 5,775 5,790 5,821 5,812 41 Other loans, net............................................................ 397,078 394,458 400,286 399,431 410,422 404,702 404,869 402,863 403,511 42 Lease financing receivables......................................... 9,949 9,965 9,974 9,978 9,973 10,066 10,100 10,090 10,119 43 All other assets............................................................ 85,102 88,293 88,641 87,386 90,207 88,825 87,295 84,552 84,659 44 Total assets.................................................................... 739,116 734,841 750,699 731,838 760,323 745,723 751,037 733,513 719,392 Deposits 45 Demand deposits.......................................................... 183,215 180,717 188,270 176,417 197,066 179,506 191,310 171,705 162,267 46 Mutual savings banks............................................... 651 474 500 498 703 570 673 473 516 47 Individuals, partnerships, and corporations........... 121,580 122,054 124,459 116,980 130,740 120,355 124,433 115,639 113,356 48 States and political subdivisions.............................. 3,732 3,830 4,075 3,865 4,565 4,056 4,334 3,644 3,553 49 U.S. government...................................................... 3,057 1,699 1,767 2,650 936 1,804 2,673 1,678 1,604 50 Commercial banks in the United States................. 35,223 33,934 32,735 34,721 39,534 34,611 39,730 33,599 26,615 51 Banks in foreign countries....................................... 8,578 8,386 9,319 9,053 8,312 8,369 9,316 7,563 8,612 52 Foreign governments and official institutions......... 1,724 1,988 1,615 1,485 1,615 1,752 1,898 1,295 1,303 53 Certified and officers’ checks.................................. 8,669 8,351 13,800 7,165 10,660 7,989 8,252 7,812 6,707 54 Time and savings deposits........................................... 312,687 311,242 309,698 312,275 315,351 315,620 315,813 317,281 319,194 55 Savings....................................................................... 71,810 71,864 71,778 70,880 72,308 72,701 71,903 71,400 70,544 56 Individuals and nonprofit organizations............. 68,233 68,301 68,270 67,353 68,726 69,190 68,474 68,004 67,177 57 Partnerships and corporations operated for profit.............................................................. 2,989 3,017 2,927 2,943 2,950 2,947 2,907 2,899 2,872 58 Domestic governmental units.............................. 571 528 560 563 614 544 501 473 472 59 All other................................................................ 16 18 21 22 18 20 21 23 22 60 Time........................................................................... 240,877 239,379 237,920 241,395 243,042 242,920 243,909 245,882 248,650 61 Individuals, partnerships, and corporations........ 208,190 207,121 206,279 209,671 211,994 211,819 213,950 215,656 218,272 62 States and political subdivisions.......................... 18,084 17,882 17,572 17,578 16,845 16,802 16,586 16,842 16,891 63 U.S. government................................................... 241 224 250 257 254 265 254 264 270 64 Commercial banks in the United States............. 8,030 7,895 7,562 7,647 7,753 7,672 7,657 7,664 7,926 65 Foreign governments, official institutions, and banks .............................................................. 6,333 6,256 6,258 6,241 6,195 6,362 5,462 5,454 5,289 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks............... 4,731 2,546 5,314 578 3,106 2,041 2,357 3,977 596 67 Treasury tax-and-loan notes.................................... 1,856 2,365 10,501 11,631 8,830 4,728 3,683 4,731 4,510 68 All other liabilities for borrowed money3............... 121,597 124,642 123,242 117,615 121,277 131,230 124,764 120,075 115,942 69 Other liabilities and subordinated notes and debentures.......................................................... 66,446 64,701 65,496 64,843 65,902 63,677 64,390 67,104 68,228 70 Total liabilities.............................................................. 690,532 686,213 702,521 683,359 711,532 696,803 702,316 684,874 670,737 71 Residual (total assets minus total liabilities)4............. 48,584 48,628 48,178 48,479 48,791 48,920 48,720 48,640 48,656 1. Includes securities purchased under agreements to resell. 4. Not a measure of equity capital for use in capital adequacy analysis or for 2. Other than financial institutions and brokers and dealers. other analytic uses. 3. Includes federal funds purchased and securities sold under agreement to re­ Digitized for FRpuArcShEasRe; 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

A20 Domestic Financial Statistics □ August 1981 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1981 June 3 June 10 June 17 June 24 July IP July 8 p July 15 p July 22 p July 29 p 1 Cash items in process of collection.............................. 21,808 24,382 30,078 20,189 25,553 19,870 20,808 19,107 15,256 2 Demand deposits due from banks in the United States ..................................................................... 15,950 13,698 13,129 15,709 15,542 15,708 16,332 14,362 8,775 3 All other cash and due from depository institutions.. 9,853 8,514 10,211 5,394 8,164 9,819 9,361 8,774 6,529 4 Total loans and securities1........................................... 130,759 129,003 130,349 129,182 134,677 131,792 135,942 129,734 129,689 Securities 7 Investment account, by maturity............................ 9,239 9,164 9,062 8,873 9,014 9,085 9,078 8,936 8,956 8 One year or less..................................................... 2,371 2,371 2,368 2,294 2,306 2,350 2,336 2,153 2,210 9 Over one through five years................................ 6,077 5,979 5,884 5,785 5,897 5,888 5,864 5,906 5,868 10 Over five years...................................................... 791 814 810 793 811 847 877 877 878 13 Investment account................................................... 14,575 14,718 14,605 14,456 14,238 14,240 14,152 14,192 14,193 14 U.S. government agencies.................................... 2,663 2,642 2,642 2,588 2,551 2,535 2,516 2,491 2,510 15 States and political subdivision, by maturity---- 11,260 11,424 11,314 11,260 11,074 11,101 11,060 11,123 11,096 16 One year or less................................................. 1,948 2,007 1,878 1,842 1,630 1,673 1,675 1,718 1,690 17 Over one year................................................... 9,312 9,416 9,436 9,418 9,444 9,427 9,385 9,404 9,406 18 Other bonds, corporate stocks and securities___ 652 651 649 608 613 604 576 578 586 Loans 19 Federal funds sold3...................................................... 7,400 8,110 6,372 7,549 7,508 7,458 11,331 7,615 6,952 20 To commercial banks............................................... 2,737 3,903 2,464 3,427 3,274 3,801 7,749 3,948 3,490 21 To nonbank brokers and dealers in securities....... 3,720 2,998 2,954 2,953 3,249 2,589 2,428 2,529 2,535 22 To others................................................................... 943 1,210 954 1,169 984 1,068 1,154 1,137 927 23 Other loans, gross........................................................ 102,726 100,231 103,567 101,558 107,145 104,237 104,639 102,252 102,859 24 Commercial and industrial....................................... 52,150 51,696 52,622 51,994 53,556 53,544 53,037 52,222 52,231 25 Bankers acceptances and commercial paper....... 1,259 1,354 1,562 1,578 1,898 1,648 1,621 1,172 1,312 26 All other................................................................ 50,890 50,342 51,059 50,415 51,658 51,896 51,416 51,050 50,919 27 U.S. addressees................................................. 48,322 47,663 48,405 47,859 49,040 49,377 48,866 48,507 48,362 28 Non-U.S. addressees......................................... 2,568 2,679 2,654 2,556 2,618 2,519 2,551 2,542 2,557 29 Real estate................................................................ 15,875 15,856 15,951 16,020 16,061 16,082 16,234 16,286 16,382 30 To individuals for personal expenditures............... 9,890 9,914 9,950 9,974 10,000 10,011 10,041 10,107 10,153 31 To financial institutions Commercial banks in the United States............. 1,618 1,025 1,364 1,428 1,662 1,479 1,814 1,570 1,171 32 Banks in foreign countries.................................... 4,501 4,419 4,417 4,040 4,845 4,849 5,222 4,396 4,972 33 Sales finance, personal finance companies, etc... 4,036 3,982 4,036 4,088 4,663 4,156 4,066 4,201 4,254 34 Other financial institutions.................................... 4,651 4,724 4,716 4,606 4,652 4,620 4,471 4,448 4,420 35 To nonbank brokers and dealers in securities....... 5,136 3,715 5,170 4,294 6,082 4,294 4,544 3,739 3,910 36 To others for purchasing and carrying securities4 .. 628 647 614 584 576 586 601 582 609 37 To finance agricultural production.......................... 440 428 417 407 390 389 371 374 365 38 All other................................................................... 3,800 3,826 4,308 4,122 4,656 4,226 4,238 4,325 4,391 39 Less: Unearned income............................................... 1,249 1,267 1,289 1,303 1,291 1,304 1,319 1,311 1,324 40 Loan loss reserve............................................... 1,932 1,953 1,969 1,950 1,936 1,923 1,940 1,949 1,946 41 Other loans, net............................................................ 99,545 97,011 100,309 98,305 103,917 101,010 101,380 98,991 99,589 42 Lease financing receivables......................................... 2,240 2,242 2,241 2,241 2,244 2,245 2,260 2,259 2,263 43 All other assets5............................................................ 36,951 40,611 39,387 37,270 39,233 37,887 36,055 35,588 36,210 44 Total assets................................................................... 217,563 218,450 225,396 209,986 225,414 217,322 220,758 209,823 198,723 Deposits 45 Demand deposits.......................................................... 69,242 70,236 75,627 67,360 75,928 66,315 74,152 63,888 54,922 46 Mutual savings banks............................................... 330 246 241 266 387 278 395 238 259 47 Individuals, partnerships, and corporations........... 32,696 34,225 35,546 31,038 36,461 31,025 32,654 30,307 28,909 48 States and political subdivisions.............................. 417 511 467 476 522 436 483 412 344 49 U.S. government...................................................... 865 395 697 766 178 551 725 506 380 50 Commercial banks in the United States................. 22,094 22,232 20,196 22,870 24,998 22,149 27,020 21,844 14,519 51 Banks in foreign countries....................................... 6,748 6,580 7,381 7,357 6,453 6,566 7,423 5,841 6,938 52 Foreign governments and official institutions......... 1,450 1,704 1,342 1,176 1,281 1,404 1,622 1,019 1,036 53 Certified and officers’ checks................................. 4,642 4,344 9,756 3,410 5,647 3,905 3,829 3,721 2,536 54 Time and savings deposits........................................... 58,767 58,452 58,022 59,073 60,483 60,257 60,213 61,082 61,396 55 Savings....................................................................... 9,328 9,334 9,394 9,262 9,437 9,438 9,358 9,243 9,117 56 Individuals and nonprofit organizations............. 8,929 8,946 9,005 8,871 9,060 9,064 8,999 8,895 8,766 57 Partnerships and corporations operated for profit.............................................................. 271 271 264 261 255 258 253 258 261 58 Domestic governmental units.............................. 125 115 120 124 120 112 103 87 88 59 All other................................................................ 2 2 5 6 3 2 2 2 2 60 Time........................................................................... 49,439 49,117 48,628 49,811 51,045 50,819 50,855 51,839 52,279 61 Individuals, partnerships, and corporations....... 42,060 41,757 41,451 42,484 43,850 43,533 43,949 44,845 45,336 62 States and political subdivisions.......................... 1,811 1,826 1,722 1,708 1,503 1,618 1,676 1,702 1,711 63 U.S. government................................................... 46 35 60 65 83 83 79 87 98 64 Commercial banks in the United States............. 2,513 2,546 2,479 2,679 2,729 2,662 2,639 2,690 2,718 65 Foreign governments, official institutions, and banks.............................................................. 3,008 2,952 2,916 2,875 2,880 2,923 2,511 2,515 2,416 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks............... 3,085 1,070 3,085 1,625 360 1,283 1,003 67 Treasury tax-and-loan notes.................................... 389 741 3,031 2,964 2,369 1,255 1,081 1,300 1,339 68 All other liabilities for borrowed money6............... 43,716 46,910 44,314 39,588 43,548 47,908 41,894 40,012 37,940 69 Other liabilities and subordinated notes and debentures.............................................................. 26,077 24,777 25,232 24,982 25,156 24,850 25,908 26,354 27,068 70 Total liabilities.............................................................. 201,275 202,186 209,312 193,967 209,108 200,946 204,530 193,638 182,665 71 Residual (total assets minus total liabilities)7............. 16,288 16,264 16,084 16,019 16,306 16,377 16,228 16,185 16,057 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. Not a measure of equity capital for use in capital adequacy analysis or for Digitized for FRASER other analytic uses. 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 1981 June 3 June 10 June 17 June24 July IP July 8 P July ISP July 22 p July 29p Banks with Assets of $750 Million or More 1 Total loans (gross) and securities adjusted1............... 558,359 557,437 560,839 557,706 569,703 563,256 561,710 559,152 560,733 2 Total loans (gross) adjusted1....................................... 437,317 436,011 440,108 439,753 450,162 443,766 443,331 441,626 442,601 3 Demand deposits adjusted2......................................... 97,112 98,345 97,361 95,692 101,482 99,696 101,542 94,271 97,063 4 Time deposits in accounts of $100,000 or more......... 168,083 166,415 164,919 169,071 170,418 170,347 170,881 172,516 174,815 5 Negotiable CDs........................................................ 120,636 118,938 117,544 121,226 122,735 122,345 123,533 124,423 126,528 6 Other time deposits................................................... 47,447 47,477 47,375 47,845 47,683 48,002 47,348 48,093 48,288 7 Loans sold outright to affiliates3.................................. 2,880 2,902 2,837 2,799 2,798 2,673 2,711 2,693 2,650 8 Commercial and industrial....................................... 2,027 2,071 1,995 1,960 2,133 2,016 2,062 2,035 1,971 9 Other......................................................................... 853 831 843 838 665 657 649 658 679 Banks with Assets of $1 Billion or More 10 Total loans (gross) and securities adjusted1............... 522,479 521,644 525,003 521,802 533,229 526,907 525,319 522,796 524,324 11 Total loans (gross) adjusted1....................................... 411,153 409,902 413,937 413,528 423,382 417,080 416,595 414,946 415,899 12 Demand deposits adjusted2......................................... 89,976 91,095 90,352 88,807 93,926 92,293 94,277 87,226 89,886 13 Time deposits in accounts of $100,000 or more......... 159,197 157,533 156,002 160,041 161,361 161,275 161,848 163,483 165,749 14 Negotiable CDs........................................................ 114,537 112,878 111,448 115,067 116,565 116,146 117,354 118,249 120,341 15 Other time deposits................................................... 44,660 44,655 44,554 44,974 44,796 45,129 44,494 45,234 45,409 16 Loans sold outright to affiliates3.................................. 2,824 2,841 2,775 2,732 2,729 2,604 2,643 2,618 2,574 17 Commercial and industrial....................................... 1,980 2,018 1,943 1,906 2,077 1,960 2,007 1,964 1,907 18 Other......................................................................... 844 822 832 826 652 644 636 654 667 Banks in New York City 19 Total loans (gross) and securities adjusted1,4............. 129,584 127,295 129,778 127,580 132,968 129,739 129,637 127,475 128,298 20 Total loans (gross) adjusted1....................................... 105,771 103,413 106,111 104,252 109,716 106,414 106,407 104,348 105,150 21 Demand deposits adjusted2......................................... 24,474 23,227 24,655 23,535 25,199 23,745 25,600 22,430 24,766 22 Time deposits in accounts of $100,000 or more......... 38,572 38,226 37,694 39,021 40,196 39,919 39,882 40,822 41,192 23 Negotiable CDs........................................................ 28,363 27,991 27,553 28,831 29,827 29,395 29,640 30,486 30,880 24 Other time deposits................................................... 10,209 10,235 10,141 10,191 10,369 10,524 10,242 10,336 10,312 1. Exclusive of loans and federal funds transactions with domestic commercial 3. Loans sold are those sold outright to a bank’s own foreign branches, non­ banks. consolidated nonbank affiliates of the bank, the bank’s holding company (if not a 2. All demand deposits except U.S. government and domestic banks less cash 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 Financial Statistics □ August 1981 1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial Loans Millions of dollars Outstanding Net change during Industry classification 1981 1981 1981 Mar. 25 Apr. 29 May 27 June 24 p July 29 p Ql Q2 p May June July p 1 Durable goods manufacturing............... 24,654 24,570 24,623 25,274 25,410 -217 620 52 651 136 2 Nondurable goods manufacturing....... 19,401 19,845 20,250' 20,618 20,144 -1,229 1,217 404' 368 -474 3 Food, liquor, and tobacco................. 4,580 4,409 4,577 4,404 4,101 -834 -176 168 -173 -303 4 Textiles, apparel, and leather........... 4,351 4,469 4,603 4,920 4,981 200 569 134 317 61 5 Petroleum refining............................ 2,982 3,298 3,440' 3,412 3,521 -724 430 142' -28 109 6 Chemicals and rubber...................... 3,838 4,036 3,957 4,055 3,794 -100 217 -79 98 -260 7 Other nondurable goods................... 3,650 3,633 3,672 3,826 3,746 230 176 40 154 -80 8 Mining (including crude petroleum and natural gas).............................. 15,750 16,752 17,197' 18,194 18,605 -695 2,444 445' 998 410 9 Trade...................................................... 25,617 26,778 26,306 26,107 26,973 -729 490 -472 -199 866 10 Commodity dealers............................ 1,950 2,337 1,865 1,499 1,600 -613 -451 -473' -366 101 11 Other wholesale................................ 11,875 12,244 12,023 12,087 12,397 -467 212 -221 65 309 12 Retail................................................... 11,792 12,196 12,418 12,520 12,976 352 728 222 102 456 13 Transportation, communication, and other public utilities............... 19,973 20,338 20,403 20,824 21,014 -1,518 851 65 421 190 14 Transportation.................................... 8,107 8,156 8,343 8,196 8,237 -377 89 187 -147 40 15 Communication.................................. 3,160 3,275 3,462 3,542 3,530 -174 381 186 79 -11 16 Other public utilities.......................... 8,705 8,906 8,597 9,086 9,247 -967 381 -308 489 161 17 Construction........................................... 6,225 6,446 6,988 6,984 7,110 218 758 542 -4 126 18 Services................................................... 23,611 24,074 24,421 ' 24,546 25,065 555 934 346' 124 520 19 All other2............................................... 15,181 15,416 15,023' 15,192 15,458 -878 11 -393' 170 266 20 Total domestic loans.............................. 150,413 154,220 155,210 157,739 159,779 -4,492 7,326 990 2,529 2,040 21 Memo: Term loans (original maturity more than 1 year) included in do­ mestic loans.................................... 79,298 80,333 82,411' 83,402 84,389 -2,492 4,104' 2,078' 991 987 1. Adjustment bank amounts represent accumulated adjustments originally made Note. New series. The 134 large weekly reporting commercial banks with do­ to offset the cumulative effects of mergers. These adjustment amounts should be mestic assets of $1 billion or more as of December 31, 1977, are included in this added to outstanding data for any date in the year to establish comparability with series. The revised series is on a last-Wednesday-of-the-month basis. Partly esti­ any date in the subsequent year. Changes shown have been adjusted for these mated historical data are available from the Banking Section, Division of Research amounts. and Statistics, Board of Governors of the Federal Reserve System, Washington, 2. Includes commercial and industrial loans at a few banks with assets of $1 D.C., 20551. billion or more that do not classify their loans. NOTES TO TABLE 1.31 1. Figures include cash items in process of collection. Estimates of gross deposits 4. After the end of 1978 the large weekly reporting bank panel was changed to are based on reports supplied by a sample of commercial banks. Types of depositors 170 large commercial banks, each of which had total assets in domestic offices in each category are described in the June 1971 Bulletin, p. 466. exceeding $750 million as of Dec. 31, 1977. See “Announcements,” p. 408 in the 2. Beginning with the March 1979 survey, the demand deposit ownership survey May 1978 Bulletin. Beginning in March 1979, demand deposit ownership esti­ sample was reduced to 232 banks from 349 banks, and the estimation procedure mates for these large banks are constructed quarterly on the basis of 97 sample was modified slightly. To aid in comparing estimates based on the old and new banks and are not comparable with earlier data. The following estimates in billions reporting sample, the following estimates in billions of dollars for December 1978 of dollars for December 1978 have been constructed for the new large-bank panel; have been constructed using the new smaller sample; financial business, 27.0; financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5; nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other, 15.1. other, 6.8. 3. Demand deposit ownership data for March 1981 are subject to greater than normal errors reflecting unusual reporting difficulties associated with funds shifted to NOW accounts authorized at year-end 1980. For the household category, the $15.7 billion decline in demand deposits at all commercial banks between December 1980 and March 1981 has an estimated standard error of $4.8 billion. 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 Corporations1 Billions of dollars, estimated daily-average balances Commercial banks Type of holder 19792 1980 1981 1975 1976 1977 1978 Dec. Dec. Dec. Dec. Dec. Mar. June Sept. Dec. Mar.3 1 All holders—Individuals, partnerships, and corporations........................................................ 236.9 250.1 274.4 294.6 302.2 288.4 288.6 302.0 315.5 280.8 2 Financial business...................................................... 20.1 22.3 25.0 27.8 27.1 28.4 27.7 29.6 29.8 30.8 3 Nonfinancial business................................................. 125.1 130.2 142.9 152.7 157.7 144.9 145.3 151.9 162.3 144.3 4 Consumer................................................................... 78.0 82.6 91.0 97.4 99.2 97.6 97.9 101.8 102.4 86.7 5 Foreign....................................................................... 2.4 2.7 2.5 2.7 3.1 3.1 3.3 3.2 3.3 3.4 6 Other........................................................................... 11.3 12.4 12.9 14.1 15.1 14.4 14.4 15.5 17.2 15.6 Weekly reporting banks 19794 1980 1981 1975 1976 1977 1978 Dec. Dec. Dec. Dec. Dec. Mar. June Sept. Dec. Mar.3 7 All holders—Individuals, partnerships, and corporations........................................................ 124.4 128.5 139.1 147.0 139.3 133.6 133.9 140.6 147.4 133.2 8 Financial business...................................................... 15.6 17.5 18.5 19.8 20.1 20.1 20.2 21.2 21.8 21.9 9 Nonfinancial business................................................. 69.9 69.7 76.3 79.0 74.1 69.1 69.2 72.4 78.3 69.8 10 Consumer................................................................... 29.9 31.7 34.6 38.2 34.3 34.2 33.9 36.0 35.6 30.6 11 Foreign....................................................................... 2.3 2.6 2.4 2.5 3.0 3.0 3.1 3.1 3.1 3.2 12 Other........................................................................... 6.6 7.1 7.4 7.5 7.8 7.2 7.5 7.9 8.6 7.7 For notes see bottom of page A22. 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1980 1981 Instrument 1977 1978 19791 1980 Dec. Dec. Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June Commercial paper (seasonally adjusted) 1 All issuers................................................. 65,051 83,438 112,809 125,148 125,148 128,656 130,306 132,702 134,229 141,466 148,355 Financial companies2 Dealer-placed paper1 2 Total.................................................... 8,796 12,181 17,377 19,631 19,631 19,886 20,859 22,643 24,206 25,061 27,145 3 Bank-related....................................... 2,132 3,521 2,874 3,561 3,561 3,670 3,742 4,163 4,437 4,800 4,750 Directly placed paper4 4 Total.................................................... 40,574 51,647 64,748 67,888 67,888 68,956 68,936 69,461 69,537 71,842 74,952 5 Bank-related....................................... 7,102 12,314 17,598 22,382 22,382 22,570 22,331 21,604 22,858 23,880 24,107 6 Nonfinancial companies5........................ 15,681 19,610 30,684 37,629 37,629 39,814 40,511 40,598 40,486 44,563 46,258 Bankers dollar acceptances (not seasonally adjusted) 7 Total........................................................ 25,450 33,700 45,321 54,744 54,744 54,465 58,084 60,089 62,320 60,551 63,427 Holder 8 Accepting banks...................................... 10,434 8,579 9,865 10,564 10,564 9,371 9,911 10,117 10,781 10,138 11,595 9 Own bills............................................. 8,915 7,653 8,327 8,963 8,963 7,951 8,770 8,735 9,626 9,049 10,207 10 Bills bought......................................... 1,519 927 1,538 1,601 1,601 1,420 1,141 1,382 1,155 1,088 1,389 11 Fe O de w ra n l a R c e c s o e u rv n e t .. B .. a .. n .. k .. s ............................. 954 1 704 776 776 0 0 298 0 0 0 12 Foreign correspondents...................... 362 664 1,382 1,791 1,791 1,771 1,399 1,372 1,383 1,255 1,272 13 Others...................................................... 13,700 24,456 33,370 41,614 41,614 43,323 46,779 48,303 50,156 49,158 50,560 Basis 14 Imports into United States..................... 6,378 8,574 10,270 11,776 11,776 11,903 12,976 13,292 13,634 12,775 12,996 15 Exports from United States................... 5,863 7,586 9,640 12,712 12,712 12,816 12,979 13,451 13,368 13,057 13,388 16 All other................................................... 13,209 17,540 25,411 30,257 30,257 29,746 32,129 33,347 35,319 34,768 37,043 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 com­ factoring, finance leasing, and other business lending; insurance underwriting; and munications, construction, manufacturing, mining, wholesale and retail trade, other investment activities. transportation, and services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Financial Statistics □ August 1981 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—Dec. 16................. 21.00 1981—Apr. 2................. 17.00 1980—Apr......................... 19.77 1981—Jan........................... 20.16 19................. 21.50 24................. 17.50 May........................ 16.57 Feb.......................... 19.43 30................... 18.00 June ...................... 12.63 Mar......................... 18.05 1981—Jan. 2................... 20.50 May 4................... 19.00 July........................ 11.48 Apr.......................... 17.15 9................... 20.00 11................... 19.50 Aug......................... 11.12 May......................... 19.61 Feb. 3................... 19.50 19................... 20.00 Sept......................... 12.23 20.03 23................... 19.00 22................... 20.50 Oct.......................... 13.79 July........................ 20.39 Mar. 10................. 18.00 June 3 ................. 20.00 Nov......................... 16.06 17................. 17.50 July 8................... 20.50 Dec......................... 20.35 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, May 4-9, 1981 Size of loan (in thousands of dollars) All Item sizes 1,000 1-24 25-49 50-99 100-499 500-999 and over Short-Term Commercial and Industrial Loans 1 Amount of loans (thousands of dollars)....................... 16,840,794 853,190 481,971 767,519 2,118,788 1,041,775 11,577,551 2 3 W Nu e m ig b h e t r e d o - f a l v o e a r n ag s e .. . m ... a .. t . u .. r .. i . t . y .. .. ( . m ... o .. n ... t . h .. s . ) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164,4 2 5 . 2 0 121,0 3 1 .1 5 14,6 3 9 .8 4 12,0 3 0 .5 3 12,6 3 8 .2 6 1,7 3 0 .3 6 2,3 1 4 . 6 4 4 Weighted-average interest rate (percent per annum) . 19.99 19.45 19.87 19.10 19.93 19.58 20.14 5 Interquartile range1................................................... 19.00-20.85 17.85-21.15 18.83-21.74 17.00-21.00 18.95-21.49 18.39-20.75 19.36-20.85 Percentage of amount of loans 6 With floating rate........................................................... 49.0 30.1 41.2 43.2 64.7 60.7 47.2 7 8 M W a it d h e n u o n s d t e a r t e c d o m m m at i u tm ri e ty n . t . . . . . . . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . . 5 2 2 1 . . 8 6 2 1 4 3 . . 6 4 3 1 3 2 . . 1 6 4 2 8 1 . . 1 4 4 2 9 0 . . 1 7 5 29 6 . . 5 7 5 2 6 2 . . 4 0 Long-Term Commercial and Industrial Loans 9 Amount of loans (thousands of dollars)....................... 3,633,958 280,677 450,944 175,691 2,726,645 10 Number of loans............................................................. 21,441 17,936 2,725 277 503 11 Weighted-average maturity (months)........................... 50.6 35.4 53.1 43.8 52.2 12 Weighted-average interest rate (percent per annum) . 19.25 19.22 19.34 19.48 19.23 13 Interquartile range1................................................... 19.00-20.00 17.87-21.34 18.68-20.16 19.00-20.74 19.00-19.76 Percentage of amount of loans 14 With floating rate........................................................... 78.6 49.5 68.4 87.1 82.7 15 Made under commitment.............................................. 77.2 25.7 34.6 78.0 89.5 Construction and Land Development Loans 16 Amount of loans (thousands of dollars)....................... 874,542 74,010 81,222 169,763 223,133 326,415 1 1 7 8 N W u e m ig b h e t r e d o - f a l v o e a r n ag s. e . . m ... a .. t .. u .. r . i . t . y .. .. ( . m ... o ... n .. t . h ... s . ) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13, 1 9 3 5 . 6 2 7,6 3 9 .3 0 2,3 4 6 .1 3 2, 1 3 7 3 . 3 7 1, 1 3 2 3 . 2 0 1 2 6 3 .1 7 19 Weighted-average interest rate (percent per annum) . 19.09 19.83 19.06 16.10 20.74 19.35 20 Interquartile range1................................................... 18.00-21.94 18.00-21.91 15.00-21.74 8.25-18.40 20.40-22.54 19.00-21.55 Percentage of amount of loans 21 With floating rate........................................................... 66.3 58.5 42.3 19.4 83.2 87.0 22 Secured by real estate................................................... 93.1 93.3 85.5 97.9 92.4 93.0 2 2 4 3 W Ma it d h e n u o n s d t e a r t e c d o m m m at i u tm ri e ty n . t . . . . . . . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . 6 1 4 0 . .5 8 6 2 3 0 . . 5 6 6 5 2 . . 2 3 1 4 9 . . 7 8 8 4 0 . . 0 9 7 1 8 7 . . 1 0 Type of construction 2 2 2 5 7 6 N M 1- o u t n o l r t 4 e if - s a f id a m m en il i t y l i y a .. . l . . . .. .. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3 1 4 2 3 . . . 3 7 1 6 3 4 2 3 . . . 1 9 0 8 1 3 5 1 . . . 5 3 2 8 1 4 3 2 . . . 5 5 0 2 6 1 4 5 0. . . 1 0 9 4 2 2 7 5 7 . . . 7 2 2 All 250 sizes 1-9 10-24 25-49 50-99 100-249 and over Loans to Farmers 28 Amount of loans (thousands of dollars)....................... 1,419,090 188,183 236,302 220,646 180,935 281,187 311,838 3 2 0 9 N W u e m ig b h e t r e d o - f a l v o e a r n ag s e .. . m ... a .. t . u .. r .. i . t . y .. . ( .. m ... o .. n ... t . h ... s . ) .. . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,5 6 9 . 3 8 50,0 6 6 . 5 8 15,8 6 5 .4 0 6,4 6 5 . 0 6 2,7 6 4 .3 0 1,9 7 5 .7 7 5 6 3 .8 1 31 Weighted-average interest rate (percent per annum) . 17.88 17.50 17.59 17.67 17.78 17.97 18.46 32 Interquartile range1................................................... 16.53-19.10 16.64-18.68 16.64-18.81 16.64-18.50 16.64-18.50 16.53-18.77 16.10-20.75 By purpose of loan 33 Feeder livestock............................................................. 18.44 17.98 18.43 17.91 18.07 18.49 18.93 34 Other livestock............................................................... 17.98 17.28 18.42 17.39 18.75 17.64 (2) 35 Other cyrrent operating expenses................................ 17.73 17.46 17.36 17.65 17.88 18.27 17.85 36 Farm machinery and equipment.................................. 17.61 17.53 17.62 17.63 17.01 (2) (2) 37 Other............................................................................. 17.68 17.30 17.25 17.58 17.22 17.35 19.73 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(111) statistical release, of loans made. 2. Fewer than 10 sample loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets A25 1.35 INTEREST RATES Money and Capital Markets Averages, percent per annum; weekly and monthly figures are averages of business day data unless otherwise noted. 1981 1981, week ending Instrument 1978 1979 1980 Apr. May June July July 3 July 10 July 17 July 24 July 31 Money Market Rates 1 Federal funds1,2......................................... 7.93 11.19 13.36 15.72 18.52 19.10 19.04 18.84 19.93 18.76 19.05 18.54 Commercial paper3,4 3 2 3 1 - - m m o o n n t t h h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 . . 7 94 6 1 10 0 . . 9 8 7 6 1 12 2 . . 6 7 6 6 1 1 4 4 . .5 79 6 1 1 7 7 . . 9 5 1 6 1 1 7 6. . 3 3 2 4 1 17 7 . . 0 7 0 0 1 16 7 . . 3 2 5 9 1 1 8 6 . . 0 9 7 7 1 1 6 7 . . 7 3 8 9 1 17 7 . . 3 94 9 1 17 7. .3 0 6 2 4 6-month................................................... 7.99 10.91 12.29 14.17 16.66 15.22 16.09 15.46 15.79 15.82 16.64 16.28 Finance paper, directly placed3,4 6 5 3 1 - - m m o o n nt t h h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 . . 7 8 3 0 1 1 0 0 . . 7 4 8 7 1 1 2 1 . . 4 4 4 9 1 1 4 3 . . 2 2 4 8 1 1 7 5 . . 4 5 7 6 1 1 6 4 . . 6 5 6 8 1 1 7 5. . 2 2 1 9 1 1 6 4 . .2 7 1 8 1 17 4 . . 5 6 1 5 1 1 7 5 . . 0 3 9 8 1 1 7 5 . . 5 5 3 2 1 1 7 5 . . 0 6 8 8 7 6-month................................................... 7.78 10.25 11.28 12.94 14.97 14.13 14.47 13.79 14.09 14.38 14.65 15.03 Bankers acceptances4,5 8 3-month................................................... 8.11 11.04 12.78 14.65 17.56 16.27 17.10 16.53 16.97 16.80 17.49 17.20 9 6-month................................................... n.a. n.a. n.a. 14.19 16.26 15.02 16.15 15.46 15.89 15.77 16.65 16.45 Certificates of deposit, secondary market6 1 1 1 1 2 0 6 3 1 - - - m m m o o o n n n t t t h h h. . .. . .. . . . . .. . . . . . . . . . . . . . .. . .. . .. . . . . .. . .. . . . . .. . .. . . . . .. . .. . . . . .. . .. . . . . .. . .. . .. . . . . . . . . . . . . . .. . . . . .. . .. . .. . . . . .. . . . . . . . . . . . . . .. . .. . .. . . . . .. . . . . .. . . . . . 8 8 7 . . . 6 2 8 1 2 8 1 1 1 1 1 1. . . 0 4 2 3 2 4 1 1 1 3 2 2 . . . 9 0 9 1 9 7 1 1 1 5 4 5 . . . 9 1 0 2 2 8 1 1 1 7 8 8 . . . 6 2 1 6 7 6 1 1 1 6 7 6 . . . 5 0 9 5 9 0 1 1 1 7 7 7 . . . 4 7 9 6 0 8 1 1 1 6 7 7 . . . 4 4 1 3 2 0 1 1 1 7 7 8 . . . 1 1 6 2 8 7 1 1 1 7 7 7 . . . 0 4 7 0 7 2 1 1 1 8 8 7 . . . 2 1 9 6 8 8 1 1 1 7 7 7 . . . 7 8 8 3 5 2 13 Eurodollar deposits, 3-month2................. 8.78 11.96 14.00 15.95 19.06 17.86 18.49 18.01 18.19 18.30 18.66 18.91 U.S. Treasury bills4 Secondary market7 14 3-month............................................... 7.19 10.07 11.43 13.69 16.30 14.73 14.95 14.34 14.82 14.56 15.50 15.07 15 6-month............................................... 7.58 10.06 11.37 13.45 15.29 14.09 14.74 14.04 14.45 14.39 15.30 15.00 16 1-year................................................... 7.74 9.75 10.89 12.79 14.29 13.22 13.91 13.30 13.58 13.56 14.40 14.25 Auction average8 17 3-month............................................... 7.221 10.041 11.506 13.635 16.295 14.557 14.699 13.909 14.400 14.558 15.563 15.065 18 6-month............................................... 7.572 10.017 11.374 13.434 15.334 13.947 14.402 13.621 14.050 14.230 15.318 14.790 19 1-year................................................... 7.678 9.817 10.748 12.991 14.623 13.146 13.735 13.735 Capital Market Rates U.S. Treasury notes and bonds9 Constant maturities10 2 2 2 1 2 0 2 2 1 - - - ^ y y e e -y a a e r r . . a . . . . r . . 1 . . . . 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8 . . 3 3 4 4 1 10 0 . . 1 6 2 7 1 1 2 1 . . 0 7 5 7 1 14 4 . . 1 3 5 2 1 1 5 6 . . 4 2 6 0 1 1 4 4 . . 5 8 1 6 1 1 5 5 . . 3 7 5 2 1 1 14 4 4 . . . 6 9 7 5 4 4 1 1 4 5 . . 9 2 3 7 1 1 1 5 5 5 . . .1 0 3 5 2 4 1 1 5 6 . . 8 3 8 6 1 1 1 5 6 5 . . . 1 7 8 3 7 0 23 3-year................................................... 8.29 9.71 11.55 14.09 15.08 14.29 15.15 14.58 14.76 14.86 15.61 15.55 24 5-year................................................... 8.32 9.52 11.48 13.99 14.63 13.95 14.79 14.28 14.48 14.53 15.17 15.13 25 7-year................................................... 8.36 9.48 11.43 13.85 14.30 13.67 14.49 14.10 14.22 14.27 14.79 14.80 26 10-year................................................. 8.41 9.44 11.46 13.68 14.10 13.47 14.28 13.88 14.00 14.08 14.56 14.59 27 20-year................................................. 8.48 9.33 11.39 13.46 13.82 13.20 13.92 13.61 13.66 13.73 14.16 14.23 28 30-year................................................. 8.49 9.29 11.30 13.20 13.60 12.96 13.59 13.31 13.35 13.40 13.81 13.87 Composite12 29 Over 10 years (long-term)................. 7.89 8.74 10.81 12.62 12.96 12.39 13.05 12.76 12.85 12.84 13.28 13.30 State and local notes and bonds Moody's series13 3 3 1 0 B A a a a a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 5 . . 2 5 7 2 6 5 . . 7 9 3 2 7 9. .8 01 5 1 9 0 . . 7 85 8 1 9 1 . . 9 2 0 8 1 9 1 . .2 8 1 6 1 10 1 . . 2 5 1 5 1 9 1 . .2 8 5 0 1 1 0 1 . . 1 4 5 0 1 1 0 1 . . 3 7 0 0 1 1 0 1. . 7 30 0 1 1 0 1 . .7 5 0 0 32 Bond Buyer series14.............................. 6.03 6.52 8.59 10.62 10.78 10.67 11.14 10.85 10.97 11.09 11.34 11.44 Corporate bonds Seasoned issues15 33 All industries...................................... 9.07 10.12 12.75 14.66 15.15 14.76 15.18 14.91 15.01 15.09 15.33 15.35 34 Aaa...................................................... 8.73 9.63 11.94 13.88 14.32 13.75 14.38 14.04 14.19 14.25 14.55 14.61 3 3 5 6 A Aa .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 8 . . 1 9 2 2 1 9 0 . . 9 2 4 0 1 12 2 . . 8 5 9 0 1 14 4 . . 8 3 2 9 1 15 4 . . 4 8 3 8 1 1 4 5 . . 4 0 1 8 1 1 5 4. . 7 3 9 6 1 1 4 5 . . 5 11 1 1 1 5 4 . . 2 5 2 9 1 1 5 4 . . 2 7 7 0 1 1 5 4. .4 99 9 1 15 4 . . 5 9 5 9 37 Baa...................................................... 9.45 10.69 13.67 15.56 15.95 15.80 16.17 15.97 16.05 16.15 16.30 16.25 Aaa utility bonds16 3 3 8 9 N R e e w ce n is tl s y u o e f . f . e .. r .. e .. d .. . i . s .. s . u ... e .. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8. .9 96 7 1 1 0 0. . 0 0 3 2 1 12 2 . . 7 7 0 4 1 15 5 . . 6 4 8 8 1 1 5 5 . . 8 4 1 8 1 1 4 4 . . 8 7 1 6 1 1 6 5. . 7 3 3 0 14.94 15.04 1 1 5 5 . . 6 7 7 2 1 1 6 6 . . 4 0 1 5 1 16 6 . . 5 7 5 8 Memo: Dividend/price ratio17 40 Preferred stocks...................................... 8.25 9.07 10.57 11.80 12.03 12.23 12.43 12.32 12.42 12.31 12.55 12.57 41 Common stocks...................................... 5.28 5.46 5.25 4.84 4.98 5.03 5.18 5.13 5.02 5.12 5.26 5.17 1. Weekly and monthly figures are averages of all calendar days, where the rate 11. Each weekly figure is calculated on a biweekly basis and is the average of for a weekend or holiday is taken to be the rate prevailing on the preceding business five business days ending on the Monday following the calendar week. The biweekly day. The daily rate is the average of the rates on a given day weighted by the rate is used to determine the maximum interest rate payable in the following twovolume of transactions at these rates. week period on small saver certificates. (See table 1.16.) 2. Weekly figures are statement week averages—that is, averages for the week 12. Unweighted averages for all outstanding notes and bonds neither due nor ending Wednesday. callable in less than 10 years, including several very low yielding “flower” bonds. 3. Unweighted average of offering rates quoted by at least five dealers (in the 13. General obligations only, based on figures for Thursday, from Moody's case of commercial paper), or finance companies (in the case of finance paper). Investors Service. Before November 1979, maturities for data shown are 30-59 days, 90-119 days, 14. General obligations only, with 20 years to maturity, issued by 20 state and and 120-179 days for commercial paper; and 30-59 days, 90—119 days, and 150— local governmental units of mixed quality. Based on figures for Thursday. 179 days for finance paper. 15. Daily figures from Moody’s Investors Service. Based on yields to maturity 4. Yields are quoted on a bank-discount basis, rather than an investment yield on selected long-term bonds. basis (which would give a higher figure). 16. Compilation of the Federal Reserve. Issues included are long-term (20 years 5. Dealer closing offered rates for top-rated banks. Most representative rate or more). New-issue yields are based on quotations on date of offering; those on (which may be, but need not be, the average of the rates quoted by the dealers). recently offered issues (included only for first 4 weeks after termination of under­ 6. Unweighted average of offered rates quoted by at least five dealers early in writer price restrictions), on Friday close-of-business quotations. the day. 17. Standard and Poor's corporate series. Preferred stock ratio based on a sample 7. Unweighted average of closing bid rates quoted by at least five dealers. of ten issues: four public utilities, four industrials, one financial, and one trans­ 8. Rates are recorded in the week in which bills are issued. portation. Common stock ratios on the 500 stocks in the price index. 9. Yields (not compounded) are based on closing bid prices quoted by at least five dealers. 10. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields are read from a yield curve at fixed maturities. Based on only recently issued, actively traded securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Financial Statistics □ August 1981 1.36 STOCK MARKET Selected Statistics 1978 1979 Jan. Feb. Mar. Apr. May June July Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50).. 53.76 55.67 68.06 76.24 73.52 76.46 77.60 76.28 76.80 74.98 2 Industrial................................................................ 58.30 61.82 78.64 89.23 85.74 89.39 90.57 88.78 88.63 86.64 3 Transportation........................................................ 43.25 45.20 60.52 74.43 72.76 77.09 80.63 76.78 76.71 74.42 4 Utility..................................................................... 39.23 36.46 37.35 38.53 37.59 37.78 38.34 38.27 39.23 38.90 5 Finance..................... ........................................... 56.74 58.65 64.28 70.04 68.48 72.82 74.59 74.65 79.79 74.97 6 Standard & Poor’s Corporation (1941-43 = 10)1... 96.11 107.94 118.71 132.97 128.40 133.19 134.43 131.73 132.28 129.13 7 American Stock Exchange (Aug. 31, 1973 = 100) . 144.56 186.56 300.94 344.21 338.28 347.07 363.09 365.52 369.64 364.33 Volume of trading (thousands of shares) 8 New York Stock Exchange....................................... 28,591 32,233 44,867 45,500 42,963 53,387 54,124 45,272 50,517 43,930 9 American Stock Exchange....................................... 3,622 4,182 6,377 6,024 4,816 5,682 6,339 5,650 6,096 4,374 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers-dealers2 11,035 11,619 14,721 14,242 14,171 14,869 14,951 15,126 11 Margin stock3................................................. 10,830 11,450 14,500 14,020 13,950 14,020 14,630 14,700 14,870 12 Convertible bonds......................................... 205 167 219 221 220 222 238 251 254 13 Subscription issues....................................... 1 2 2 1 1 1 1 1 2 Free credit balances at brokers4 14 Margin-account............................................. 835 1,105 2,105 2,065 2,225 2,340 2,270 2,350' 2,350 15 Cash-account................................................. 2,510 4,060 6,070 5,655 5,700 6,530 6,440' 6,150 6,650 Margin-account debt at brokers (percentage distribution, end of period) 16 Total................................... 100.0 100.0 100.0 100.0 100.0 100.0 By equity class (in percent)5 17 Under 40.............................. 33.0 16.0 14.0 20.0 20.0 16.0 20.8 21.3 25.0 18 40-49................................... 28.0 29.0 30.0 30.0 31.0 28.0 26.8 25.3 29.0 19 50-59.................................... 18.0 27.0 25.0 22.0 21.0 26.0 23.7 25.3 21.0 20 60-69 ................................... 10.0 14.0 14.0 13.0 13.0 14.0 12.6 12.7 11.0 21 70-79................................... 6.0 8.0 9.0 8.0 8.0 9.0 8.1 8.0 7.0 22 80 or more.......................... 5.0 7.0 8.0 7.0 7.0 8.0 8.0 8.0' 7.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6.. 13,092 16,150 21,690 21,686 21,861 22,748 23,457r 23,700 Distribution by equity status (percent) 24 Net credit status................................ 41.3 44.2 47.8 50.2 53.2 Debt status, equity of 25 60 percent or more......................... 45.1 47.0 44.4 43.9 43.1 41.5 41.7 41.0 38.4 26 Less than 60 percent....................... 13.6 7.7 9.1 8.3 7.6 9.0 8.4 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 related collateral in the customer’s margin account or deposits of cash (usually sales pro­ eguity instruments and secured at least in part by stock. Credit extended is end- ceeds) occur. 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 ir) accounts with no unfulfilled commitments to the requirements ate 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 A27 1.37 SAVINGS INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1980 1981 Account 1978 1979 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June^ Savings and loan associations 1 Assets.......................................................... 523,542 578,962 609,320 617,773 623,939 629,829 631,228 634,405 636,859 639,827 644,603 646,350 2 Mortgages................................................... 432,808 475,688 491,895 496,495 499,973 502,812 504,068 505,309 507,152 509,525 511,754 514,568 3 Cash and investment securities1............... 44,884 46,341 53,435 56,146 57,302 57,572 57,460 58,401 58,461 56,886 59,045 57,649 4 Other.......................................................... 45,850 56,933 63,990 65,132 66,664 69,445 69,700 70,695 71,246 72,416 73,804 74,133 5 Liabilities and net worth............................ 523,542 578,962 609,320 617,773 623,939 629,829 631,228 634,405 636,859 639,827 644,603 646,350 6 Savings capital............................................. 430,953 470,004 496,991 500,861 503,365 510,959 512,946 515,250 518,990 516,071 517,628 517,792 7 Borrowed money....................................... 42,907 55,232 58,418 60,727 62,067 64,491 62,938 62,270 64,197 67,704 70,025 74,716 8 FHLBB................................................... 31,990 40,441 42,547 44,325 45,505 47,045 46,629 46,360 47,310 49,607 51,064 53,734 9 Other...................................................... 10,917 14,791 16,402 16,562 17,446 16,309 15,910 16,887 18,097 18,097 18,961 20,982 10 Loans in process......................................... 10,721 9,582 8,654 8,853 8,783 8,120 7,833 7,756 7,840 7,840 7,997 7,968 11 Other.......................................................... 9,904 11,506 12,776 14,502 16,433 12,227 14,104 16,071 13,271 14,946 17,089 14,317 12 Net worth2................................................... 29,057 32,638 32,892 33,029 33,221 33,319 33,120 32,981 32,645 32,266 31,864 31,557 13 Memo: Mortgage loan com­ mitments outstanding3........................ 18,911 16,007 20,311 19,077 17,979 16,102 15,972 16,279 17,374 18,552 18,740 18,212 Mutual savings banks4 14Assets.......................................................... 158,174 163,405 169,409 170,432 171,126 171,564 171,891 172,349 173,232 172,837 173,776 Loans 15 Mortgage................................................. 95,157 98,908 99,306 99,523 99,677 99,865 99,816 99,739 99,719 99,798 99,790 16 Other...................................................... 7,195 9,253 11,415 11,382 11,477 11,733 12,199 12,598 13,248 12,756 13,375 Securities 17 U.S. government5.................................. 4,959 7,658 8,434 8,622 8,715 8,949 9,000 9,032 9,203 9,262 9,296 18 State and local government................... 3,333 2,930 2,728 2,754 2,736 2,390 2,378 2,376 2,359 2,314 2,328 19 Corporate and other6.............................. 39,732 37,086 39,609 39,720 39,888 39,282 39,256 39,223 39,236 39,247 39,111 20 3,665 3,156 3,153 3,592 3,717 4,334 4,133 4,205 4,238 4,172 4,513 n.a. 21 Other assets................................................. 4,131 4,412 4,764 4,839 4,916 5,011 5,107 5,177 5,231 5,288 5,364 22Liabilities.................................................... 158,174 163,405 169,409 170,432 171,126 171,564 171,891 172,349 173,232 172,837 173,776 23Deposits...................................................... 142,701 146,006 151,765 151,998 152,133 153,501 153,143 153,332 154,805 153,692 153,891 24 Regular7................................................... 141,170 144,070 149,395 149,797 150,109 151,416 151,051 151,346 152,630 151,429 151,658 25 Ordinary savings.................................. 71,816 61,123 58,658 57,651 56,256 53,971 52,737 52,035 53,049 52,331 51,212 26 Time and other.................................... 69,354 82,947 90,736 92,146 93,853 97,445 98,314 99,311 99,581 99,098 100,447 27 Other...................................................... 1,531 1,936 2,370 2,200 2,042 2,086 2,092 1,986 2,174 2,264 2,232 28Other liabilities........................................... 4,565 5,873 6,299 7,117 7,644 6,695 7,426 7,753 7,265 8,103 8,922 29General reserve accounts.......................... 10,907 11,525 11,344 11,317 11,349 11,368 12,957 13,412 11,163 11,042 10,923 30Memo: Mortgage loan com­ mitments outstanding8........................ 4,400 3,182 1,883 1,817 1,682 1,476 1,316 1,331 1,379 1,614 1,709 Life insurance companies 31 Assets.......................................................... 389,924 432,282 464,483 468,057 473,529 476,190 482,009 485,033 490,149 493,185 497,276 Securities 32 Government........................................... 20,009 0,338 20,853 20,942 21,204 21,453 22,246 22,669 22,775 22,603 22,948 33 United States9..................................... 4,822 4,888 5,361 5,390 5,568 5,753 6,429 6,774 6,807 6,502 6,787 34 State and local.................................... 6,402 6,428 6,474 6,484 6,568 6,645 6,571 6,145 6,199 6,809 6,815 35 Foreign10............................................. 8,785 9,022 9,018 9,068 9,068 9,068 9,246 9,250 9,269 9,292 9,346 36 Business................................................... 198,105 222,332 233,652 236,115 239,150 238,048 240,959 241,675 243,996 245,841 247,437 n.a. 37 Bonds................................................... 162,587 178,371 189,586 191,229 191,753 190,090 194,777 195,251 196,514 198,397 199,818 38 Stocks................................................... 35,518 39,757 44,066 44,886 47,397 46,958 46,182 46,424 47,482 47,444 47,619 39Mortgages................................................... 106,167 118,421 128,089 128,977 129,878 131.145 131,710 132,567 133,230 133,896 134,492 40Real estate................................................... 11,764 13,007 14,460 14,702 15,183 15,247 15,657 15,869 16,244 16,464 16,738 41 Policy loans................................................. 30,146 34,825 40,258 40,548 40,878 41,411 41,988 42,574 43,231 43,772 44,292 42Other assets................................................. 23,733 27,563 27,171 26,765 27,236 28,836 29,449 29,679 30,673 30,609 31,369 Credit unions 43 Total assets/liabilities and capital................................................... 62,348 65,854 70,515 70,702 71,335 71,709 70,754 71,446 73,214 72,783 73,565 74,041 44 Federal........................................................ 34,760 35,934 39,219 39,155 39,428 39,801 39,142 39,636 40,624 40,207 40,648 40,948 45 State ............................................................ 27,588 29,920 31,296 31,547 31,907 31,908 31,612 31,810 32,590 32,576 32,917 33,093 46 Loans outstanding..................................... 50,269 53,125 47,211 47,221 47,299 47,774 47,309 47,451 47,815 47,994 48,499 49,064 47 Federal.................................................... 27,687 28,698 25,381 25,288 25,273 25,627 25,272 25,376 25,618 25,707 26,038 26,422 48 State ........................................................ 22,582 24,426 21,830 21,933 22,026 22,147 22,037 22,075 22,197 22,287 22,461 22,642 49 Savings........................................................ 53,517 56,232 63,728 63,957 64,304 64,399 63,874 64,357 65,744 65,495 65,988 66,472 50 Federal (shares)..................................... 29,802 35,530 35,961 36,030 36,183 36,348 35,915 36,236 36,898 36,684 36,967 37,260 51 State (shares and deposits)..................... 23,715 25,702 27,767 27,927 28,121 28,051 27,959 28,121 28,846 28,811 29,021 29,212 For notes see bottom of page A28. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Financial Statistics □ August 1981 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Fiscal Fiscal Type of account or operation year year year 1978 1979 1980 1980 1981 1981 HI H2 HI Apr. May June U.S. budget 1 Receipts^.................................................... 401,997 465,940 520,050 270,864 262,152 318,899 74,464 38,514 70,688 2 Outlays1,2.................................................... 450,804 493,635 579,613 289,905 310,972 334,710 57,198 54,608 55,619 3 Surplus, or deficit( -)................................ -48,807 -27,694 -59,563 -19,041 -48,821 -15,811 17,266 -16,094 15,070 4 Trust funds............................................... 12,693 18,335 8,791 4,383 -2,551 5,797 1,896 3,639 3,026 5 Federal funds3......................................... -61,532 -46,069 -67,752 -23,418 -46,306 -21,608 15,370 -19,733 12,045 Off-budget entities (surplus, or deficit 6 Federal ^Financing Bank outlays................. -10,661 -13,261 - 14,549 -7,735 -7,552 -11,046 -2,088 -1,943 -1,295 7 Other4.......................................................... 302 793 303 -522 376 -900 -73 -342 45 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-)................................ -59,166 -40,162 -73,808 -27,298 -55,998 -27,757 15,251 - 18,379 13,820 Source or financing 9 Borrowing from the public..................... 59,106 33,641 70,515 24,435 54,764 33,213 -3,725 539 572 10 Cash and monetary assets (decrease, or increase (- ))5.................................. -3,023 -408 -355 -3,482 -6,730 2,873 -5,122 22,809 15,121 11 Other6...................................................... 3,083 6,929 3,648 6,345 7,964 -8,328 6,404 -4,969 730 Memo: 12 Treasury operating balance (level, end of period)............................................. 22,444 24,176 20,990 14,092 12,305 16,389 21,150 5,702 16,389 13 Federal Reserve Banks.......................... 16,647 6,489 4,102 3,199 3,062 2,923 4,460 2,288 2,923 14 Tax and loan accounts............................ 5,797 17,687 16,888 10,893 9,243 13,466 16,690 3,414 13,466 1. Effective June 1978, earned income credit payments in excess of an indi­ 6. Includes accrued interest payable to the public; allocations of special drawing vidual’s tax liability, formerly treated as income tax refunds, are classified as outlays rights; deposit funds; miscellaneous liability (including checks outstanding) ana retroactive to January 1976. asset accounts; seignorage; increment on gold; net gain/loss for U.S. currency 2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re­ valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on classified from an off-budget agency to an on-budget agency in the Department of the sale of gold. Labor. 3. Half-year figures are calculated as a residual (total surplus/deficit less trust Source. “Monthly Treasury Statement of Receipts and Outlays of the U.S. fund surplus/deficit). Government,” Treasury Bulletin, and the Budget of the United States Government, 4. Includes Postal Service Fund; Rural Electrification and Telephone Revolving Fiscal Year 1981. Fund; and Rural Telephone Bank. 5. Includes U.S. Treasury operating cash accounts; special drawing rights; gold 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 In­ assets.” ternational Bank for Reconstruction and Development. 2. Includes net undistributed income, which is accrued by most, but not all, associations. Note. Savings and loan associations: Estimates by the FHLBB for all 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. Before Life insurance companies: Estimates of the American Council of Life Insurance 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 Fiscal Fiscal Fiscal Source or type year year year 1980 1981 1981 1978 1979 1980 HI H2 HI Apr. May June Receipts 1 All sources1................................................... 401,997 465,955 520,050 270,864 262,152 318,899 74,464 38,514 70,688 2 Individual income taxes, net....................... 180,988 217,841 244,069 119,988 131,962 142,889 38,659 10,496 33,729 3 Withheld................................................... 165,215 195,295 223,763 110,394 120,924 126,101 20,532 20,260 23,000 4 Presidential Election Campaign Fund... 39 36 39 34 4 36 7 8 5 5 Nonwithheld............................................. 47,804 56,215 63,746 49,707 14,592 59,907 30,674 2,451 11,682 6 Refunds1................................................... 32,070 33,705 43,479 40,147 3,559 43,155 12,644 12,222 958 Corporation income taxes 7 Gross receipts......................................... 65,380 71,448 72,380 43,434 28,579 44,048 10,203 1,894 16,411 8 Refunds..................................................... 5,428 5,771 7,780 4,064 4,518 6,565 1,617 883 618 9 Social insurance taxes and contributions, net........................................................ 123,410 141,591 160,747 86,597 77,262 102,911 20,201 20,694 14,657 10 Payroll employment taxes and contributions2.................................... 99,626 115,041 133,042 69,077 66,831 83,851 13,843 15,026 13,308 11 Self-employment taxes and contributions3.................................... 4,267 5,034 5,723 5,535 188 6,240 3,945 419 536 12 Unemployment insurance...................... 13,850 15,387 15,336 8,690 6,742 9,205 1,802 4,660 234 13 Other net receipts4.................................. 5,668 6,130 6,646 3,294 3,502 3,615 612 588 580 14 Excise taxes................................................. 18,376 18,745 24,329 11,383 15,332 21,945 3,754 3,953 4,224 15 Customs deposits......................................... 6,573 7,439 7,174 3,443 3,717 3,926 655 625 791 16 Estate and gift taxes.................................... 5,285 5,411 6,389 3,091 3,499 3,259 485 647 531 17 Miscellaneous receipts5.............................. 7,413 9,252 12,741 6,993 6,318 6,487 1,338 1,087 964 Outlays 18 AH types1,6................................................... 450,804 493,635 579,613 289,905 310,972 334,710 57,198 54,608 55,619 19 National defense......................................... 105,186 117,681 135,856 69,132 72,457 80,005 13,274 13,810 13,839 20 International affairs.................................... 5,922 6,091 10,733 4,602 5,430 5,999 1,681 737 1,373 21 General science, space, and technology ... 4,742 5,041 5,722 3,150 3,205 3,314 505 536 609 22 Energy.......................................................... 5,861 6,856 6,313 3,126 3,997 5,677 924 1,106 1,319 23 Natural resources and environment........... 10,925 12,091 13,812 6,668 7,722 6,476 1,093 1,017 1,140 24 Agriculture................................................... 7,731 6,238 4,762 3,193 1,892 3,101 -304 -151 274 25 Commerce and housing credit................... 3,324 2,565 7,782 3,878 3,163 1,940 321 -269 860 26 Transportation............................................. 15,445 17,459 21,120 9,582 11,547 11,991 1,685 1,581 1,841 27 Community and regional development---- 11,039 9,482 10,068 5,302 5,370 4,621 844 687 928 28 Education, training, employment, social services................................................. 26,463 29,685 30,767 16,686 15,221 15,928 2,564 2,677 2,131 29 Health.......................................................... 43,676 49,614 58,165 29,299 31,263 34,708 6,259 5,645 6,123 30 Income security1,6....................................... 146,180 160,159 193,100 94,605 107,912 113,490 18,768 18,576 18,807 31 Veterans benefits and services................... 18,974 19,928 21,183 9,758 11,731 10,531 2,168 1,670 1,786 32 Administration of justice............................ 3,802 4,153 4,570 2,291 2,299 2,344 465 343 388 33 General government.................................... 3,737 4,153 4,505 2,422 2,432 2,692 310 393 506 34 General-purpose fiscal assistance............... 9,601 8,372 8,584 3,940 4,191 3,015 1,166 253 44 35 Interest7....................................................... 43,966 52,556 64,504 32,658 35,909 41,178 6,423 7,024 11,674 36 Undistributed offsetting receipts7,8........... -15,772 -18,489 -21,933 -10,387 -14,769 -12,432 -949 -1,029 -8,023 1. Effective June 1978, earned income credit payments in excess of an individual’s classified from an off-budget agency to an on-budget agency in the Department of tax liability, formerly treated as income tax refunds, were classified as outlays Labor. retroactive to January 1976. 7. Effective September 1976, “Interest” and “Undistributed offsetting receipts” 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. reflect the accounting conversion from an accrual basis to a cash basis for the 3. Old-age, disability, and hospital insurance. interest on special issues for U.S. government accounts. 4. Supplementary medical insurance premiums, federal employee retirement 8. Consists of interest received by trust funds, rents and royalties on the Outer contributions, and Civil Service retirement and disability fund. Continental Shelf, and U.S. government contributions for employee retirement. 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous re­ ceipts. Source. “Monthly Treasury Statement of Receipts and Outlays of the U.S. o. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re­ Government” and the Budget of the U.S. Government, Fiscal Year 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Financial Statistics □ August 1981 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1979 1980 1981 Item Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding................................................... 804.6 812.2 833.8 852.2 870.4 884.4 914.3 936.7 970.9 2 Public debt securities........................................................ 796.8 804.9 826.5 845.1 863.5 877.6 907.7 930.2 964.5 3 Held by public................................................................ 630.5 626.4 638.8 658.0 677.1 682.7 710.0 737.7 773.7 4 Held by agencies............................................................ 166.3 178.5 187.7 187.1 186.3 194.9 197.7 192.5 190.9 5 Agency securities.............................................................. 7.8 7.3 7.2 7.1 7.0 6.8 6.6 6.5 6.4 6 Held by public................................................................ 6.3 5.9 5.8 5.6 5.5 5.3 5.1 5.0 4.9 7 Held by agencies............................................................ 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 8 Debt subject to statutory limit........................................... 797.9 806.0 827.6 846.2 864.5 878.7 908.7 931.2 965.5 9 Public debt securities........................................................ 796.2 804.3 825.9 844.5 862.8 877.0 907.1 929.6 963.9 10 Other debt1....................................................................... 1.7 1.7 1.7 1.7 1.7 1.7 1.6 1.6 1.6 11 Memo: Statutory debt limit............................................... 798.0 830.0 830.0 879.0 879.0 925.0 925.0 935.1 985.0 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 1981 Type and holder 1977 1978 1979 1980 Mar. Apr. May June July 1 Total gross public debt...................................................... 718.9 789.2 845.1 930.2 964.5 964.0 968.5 971.2 973.3 By type 2 Interest-bearing debt........................................................ 715.2 782.4 844.0 928.9 963.2 962.8 964.8 969.9 972.1 3 Marketable......................................................................... 459.9 487.5 530.7 623.2 661.1 657.9 656.2 660.8 666.4 4 Bills................................................................................ 161.1 161.7 172.6 216.1 235.3 225.8 224.5 218.8 217.5 5 Notes............................................................................... 251.8 265.8 283.4 321.6 336.5 341.1 338.4 348.8 354.0 6 Bonds............................................................................. 47.0 60.0 74.7 85.4 89.3 91.0 93.3 93.2 94.9 7 Nonmarketable1 ................................................................ 255.3 294.8 313.2 305.7 302.1 304.9 308.6 309.2 305.6 8 Convertible bonds^........................................................ 2.2 2.2 2.2 9 State and local government series................................ 13.9 24.3 24.6 23.8 23.5 23.4 23.2 23.2 22.8 10 Foreign issues3................................................................ 22.2 29.6 28.8 24.0 24.2 24.4 24.8 23.5 21.9 11 Government................................................................ 21.0 28.0 23.6 17.6 17.7 18.0 18.4 17.1 16.3 12 Public......................................................................... 1.2 1.6 5.3 6.4 6.4 6.4 6.4 6.4 5.7 13 Savings bonds and notes............................................... 77.0 80.9 79.9 72.5 70.3 69.8 69.5 69.2 69.0 14 Government account series4......................................... 139.8 157.5 177.5 185.1 183.8 187.0 190.8 193.0 191.6 15 Non-interest-bearing debt................................................. 3.7 6.8 1.2 1.3 1.3 1.2 3.7 1.3 1.2 By holder5 16 U.S. government agencies and trust funds...................... 154.8 170.0 187.1 192.5 190.9 193.9 197.8 17 Federal Reserve Banks.................................................... 102.8 109.6 117.5 121.3 119.0 119.7 117.9 18 Private investors................................................................ 461.3 508.6 540.5 616.4 654.6 650.4 652.3 19 Commercial banks............................................................ 101.4 93.1 91.5 104.7 108.5 104.8 104.4 20 Mutual savings banks........................................................ 5.9 5.0 4.7 5.8 6.0 6.2 6.2 21 Insurance companies........................................................ 15.1 14.9 14.8 15.2 14.8 14.8 16.3 n.a. n.a. 22 Other companies................................................................ 22.7 21.2 24.9' 24.6 21.5 21.8 20.7 23 State and local governments............................................. 55.2 64.4 67.4 74.7 77.8 79.1 80.4 Individuals 24 Savings bonds................................................................ 76.7 80.7 79.9 72.2 70.4 69.8 69.5 25 Other securities.............................................................. 28.6 30.3 36.2 56.7 68.2 68.3 70.3 26 Foreign and international6................................................. 109.6 137.8 123.8 134.3 142.7 143.1' 139.4 27 Other miscellaneous investors7......................................... 46.1 58.2 97.4 127.9 144.7 142.5' 145.1 1. Includes (not shown separately): Securities issued to the Rural Electrification 6. Consists of investments of foreign balances and international accounts in the Administration, depository bonds, retirement plan bonds, and individual retire­ United States. Beginning with July 1974, the figures exclude non-interest-bearing ment bonds. notes issued to the International Monetary Fund. 2. These nonmarketable bonds, also known as Investment Series B Bonds, may 7. Includes savings and loan associations, nonprofit institutions, corporate pen­ be exchanged (or converted) at the owner’s option for 1 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 1981 1981 Type of holder 1979 1980 1979 1980 Apr. May Apr. May All maturities 1 to 5years 1 All holders........................................................................................ 530,731 623,186 657,906 656,185 164,198 197,409 203,931 203,174 2 U.S. government agencies and trust funds..................................... 11,047 9,564 9,228 9.228 2.555 1,990 1,363 1,357 3 Federal Reserve Banks................................................................... 117,458 121,328 119,687 117,900 8,469 35,835 34,981 33,938 4 Private investors............................................................................... 402,226 492,294 528,992 529,057 133.173 159,585 167,588 167,880 5 Commercial banks....................................................................... 69,076 77,868 77.913 77,689 38,346 44,482 41,218 40,325 6 Mutual savings banks................................................................... 3,204 3,917 4,204 4,202 1.668 1,925 2,008 2,071 7 Insurance companies................................................................... 11,496 11,930 11.661 12,621 4.518 4,504 4,224 5,493 8 Nonfinancial corporations............................................................ 8,433 7,758 7,342 6,820 2,844 2,203 1,392 1,157 9 Savings and loan associations...................................................... 3.209 4,225 4,330 4,572 1,763 2,289 2,654 2,549 10 State and local governments........................................................ 15,735 21,058 22.756 23,338 3,487 4,595 5,218 5,472 11 All others...................................................................................... 291,072 365,539 400.787 399,815 80,546 99,577 110,873 110,813 Total, within 1 year 5 to 10 years 12 All holders........................................................................................ 255,252 297,385 311,001 314,411 50,440 56,037 64,945 58,295 13 U.S. government agencies and trust funds..................................... 1.629 830 1,113 1.119 871 1,404 1,411 1,411 14 Federal Reserve Banks................................................................... 63.219 56,858 55.373 55.205 12,977 13,458 13,918 13,042 15 Private investors............................................................................... 190,403 239,697 254.515 258.087 36.592 41,175 49,616 43,842 16 Commercial banks....................................................................... 20,171 25,197 27.183 28.662 8.086 5,793 6,695 5,680 17 Mutual savings banks................................................................... 836 1,246 1.340 1.404 459 455 521 400 18 Insurance companies................................................................... 2.016 1,940 1.992 2.103 2,815 3,037 3,207 2,616 19 Nonfinancial corporations............................................................ 4.933 4.281 3,768 3,664 308 357 516 391 20 Savings and loan associations...................................................... 1.301 1.646 1,489 1,881 69 216 127 82 21 State and local governments........................................................ 5.607 7,750 7,819 8,135 1.540 2,030 2,491 2,254 22 All others...................................................................................... 155.539 197,636 210,924 212,238 23.314 29,287 36,060 32,419 Bills, within 1 year 10 to 20 years 23 All holders........................................................................................ 172,644 216,104 225,849 224,514 27,588 36,854 38,202 39,927 24 U.S. government agencies and trust funds..................................... 0 1 1 2 4.520 3,686 3,685 3,685 25 Federal Reserve Banks................................................................... 45,337 43,971 43,263 41,887 3.272 5,919 5,929 5,945 26 Private investors............................................................................... 127.306 172,132 182.585 182,625 19.796 27,250 28,587 30,296 27 Commercial banks....................................................................... 5,938 9,856 9,504 9,891 993 1,071 1,190 1,368 28 Mutual savings banks................................................................... 262 394 426 455 127 181 182 177 29 Insurance companies................................................................... 473 672 730 791 1.305 1,718 1,528 1,674 30 Nonfinancial corporations............................................................ 2.793 2.363 1.900 1,671 218 431 839 766 31 Savings and loan associations...................................................... 219 818 526 749 58 52 37 36 32 State and local governments........................................................ 3.100 5,413 5.150 5,318 1.762 3,597 4,014 4,164 33 All others...................................................................................... 114,522 152,616 164,349 163,751 15.332 20,200 20,798 22,110 Other, within 1 year Over 20 years 34 All holders........................................................................................ 82,608 81,281 85,153 89,897 33,254 35,500 39,827 40,378 35 U.S. government agencies and trust funds..................................... 1,629 829 1.112 1,118 1.472 1,656 1,656 1,656 36 Federal Reserve Banks................................................................... 17,882 12,888 12.110 13,318 9.520 9,258 9,486 9,770 37 Private investors............................................................................... 63.097 67,565 71.931 75,462 22,262 24,587 28,685 28,953 38 Commercial banks....................................................................... 14,233 15,341 17.680 18,771 1.470 1.325 1,627 1,654 39 Mutual savings banks................................................................... 574 852 914 949 113 110 153 150 40 Insurance companies................................................................... 1.543 1.268 1.262 1.312 842 730 709 734 41 Nonfinancial corporations............................................................ 2.140 1.918 1,868 1,993 130 476 828 843 42 Savings and loan associations...................................................... 1.081 828 963 1,132 19 21 23 24 43 State and local governments........................................................ 2.508 2.337 2,669 2,817 3.339 3,086 3,213 3,313 44 All others...................................................................................... 41.017 45.020 46.574 48,487 16.340 18,838 22,132 22,235 Note. Direct public issues only. Based on Treasury Survey of Ownership from and 723 insurance companies, each about 80 percent; (2) 409 nonfinancial cor­ Treasury Bulletin (U.S. Treasury Department). porations and 474 savings and loan associations, each about 50 percent: and (3) Data complete for U.S. government agencies and trust funds and Federal Reserve 488 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 May 31,1981: (1) 5,341 commercial banks. 458 mutual savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Financial Statistics □ August 1981 1.43 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1981 1981, week ending Wednesday Item 1978 1979 1980 Apr .p May? June*7 June 17 June 24 July 1 July 8 July 15 July 22 Immediate delivery1 1 U.S. government securities---- 10,285 13,183 21,360 21,554 23,513 21,664 24,215 24,378 24,683 23,231 19,541 By maturity 2 Bills....................................... 6,173 7,915 13,134 12,359 13,900 13,314 14,011 14,143 15,209 15,506 12,812 3 Other within 1 year............. 392 454 374 459 478 584 304 625 1,317 393 382 4 1-5 years................................ 1,889 2,417 3,390 3,954 4,052 3,008 5,525 4,168 3,103 2,791 2,914 5 5-10 years.............................. 965 1,121 2,135 1,982 2,511 2,386 2,118 2,356 3,123 2,212 1,637 6 Over 10 years........................ 867 1,276 2,328 2,574 2,571 2,371 2,257 3,086 1,931 2,330 1,796 By type of customer 7 U.S. government securities dealers............................ 1,135 1,448 1,070 1,108 1,373 1,311 1,454 1,307 4,627 1,898 1,676 8 U.S. government securities brokers.......................... 3,838 5,170 n.a. 10,565 10,226 11,158 10,635 11,715 10,860 9,981 11,752 9,705 9 All others2............................ 5,312 6,564 9,725 10,221 10,984 9,718 11,047 12,211 10,074 9,582 8,160 10 Federal agency securities......... 1,894 2,723 2,864 2,806 3,865 3,724 3,938 3,587 3,171 3,864 2,110 11 Certificates of deposit......... 3,518 2,992 4,336 4,168 4,829 4,882 3,697 4,690 4,058 12 Bankers acceptances............. \f \\ 1,627 1,363 1,833 1,986 1,528 2,038 1,500 1,647 1,570 13 Commercial paper................. 5,302 6,047 6,295 6,652 5,834 7,010 6,210 5,880 5,754 Futures transactions3................... \1 1\ 14 Treasury bills............................ n.a. n.a. 2,572 2,768 3,390 3,089 3,249 3,991 3,598 4,612 3,272 15 Treasury coupons..................... 978 1,040 887 805 844 963 1,119 1,274 967 16 Federal agency securities......... 186 243 190 144 151 191 142 107 163 Forward transactions4................... 17 U.S. government securities.... 158 280 253 337 338 248 469 213 420 18 Federal agency securities......... 1,337 1,403 1,375 1,462 1,192 1,344 1,178 562 946 1. Before 1981, data for immediate transactions include forward transactions. date of the transaction for government securities (Treasury bills, notes, and bonds) 2. Includes, among others, all other dealers and brokers in commodities and or after 30 days for mortgage-backed agency issues. securities, nondealer departments of commercial banks, foreign banking agencies, Notes. Averages for transactions are based on number of trading days in the and the Federal Reserve System. period. 3. Futures contracts are standardized agreements arranged on an organized ex­ Transactions are market purchases and sales of U.S. government securities deal­ change in which parties commit to purchase or sell securities for delivery at a future ers reporting to the Federal Reserve Bank of New York. The figures exclude date. allotments of, and exchanges for, new U.S. government securities, redemptions of 4. Forward transactions are agreements arranged in the over-the-counter market called or matured securities, purchases or sales of securities under repurchase in which securities are purchased (sold) for delivery after 5 business days from the agreement, reverse repurchase (resale), or similar contracts. 1.44 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing Averages of daily figures, in millions of dollars 1981 1981, week ending Wednesday Item 1978 1979 1980 .P Apr May/7 June*7 May 27 June 3 June 10 June 17 June 24 July 1 Positions Net immediate1 1 U.S. government securities.... 2,656 3,223 11,570 4,646 9,037 4,689 6,317 8,500 11,672 9,578 7,320 2 Bills....................................... 2.452 3.813 8,471 1,820 5,472 1,635 3,215 4,395 8,819 6,261 3,031 3 Other within 1 year............. 260 -325 142 226 -523 112 88 36 -740 -715 -1,001 4 1-5 years................................ -92 -455 399 499 1,133 994 329 169 556 1,750 2,613 5 5-10 years.............................. 40 160 530 157 490 -14 735 768 676 182 184 6 Over 10 years........................ -4 30 2,027 1,944 2,232 1,962 1,950 2,132 2,360 2,100 2,493 7 Federal agency securities......... 606 1,471 1,710 1,680 2,504 1,521 2,115 2,157 2,749 2,578 2,729 8 Certificates of deposit......... 2,775 24,794 n.a. 2,117 1,965 4,012 1,746 2,419 2,987 4,055 4,360 5,550 9 Bankers acceptances............. I T 1,705 1,278 2,109 1,040 1,370 1,951 2,211 2,019 2,649 10 Commercial paper................. 1 1 2,721 2,373 3,043 2,180 3,190 2,615 3,377 2,981 3,153 Futures positions.......................... 11 Treasury bills............................ -770 -6,146 -9,773 -6,258 -8,072 -8,638 -11,627 -10,187 -9,302 12 Treasury coupons..................... n.a. n.a. -2,503 -2,312 -2,455 -2,303 -2,349 -2,418 -2,749 -2,372 -2,305 13 Federal agency securities......... II 11 -552 -735 -1,041 -912 -993 -1,023 -1,057 -1,067 -1,035 Forwards positions...................... ▼ ▼ 14 U.S. government securities---- -672 -1,009 -720 -998 -1,043 -888 -465 -763 -610 15 Federal agency securities......... -239 -124 260 45 94 131 203 413 382 Financing2 f f i Reverse repurchase agreements3. 1 1 1 16 Overnight and continuing....... 9,466 10,667 12,193 10,123 11,256 11,982 10,522 12,378 14,643 17 Term agreements..................... 1 25,704 30,592 29,785 31,342 28,715 29,547 28,626 31,244 30,248 18 Re O pu v r e c r h n a ig s h e t a a g n r d e e c m o e n n ti t n s4 u . i . n .. g .. . . . . . . . . . . . . . . n\.a. n.11 a. n J . I a. 32,515 28,075 33,748 28,393 28,393 31,566 34,263 35,009 36,899 19 Term agreements..................... 24,563 27,716 27,684 28,845 27,281 29,273 26,443 28,718 26,275 For notes see opposite page. 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 1981 Agency 1977 1978 1979 Dec. Jan. Feb. Mar. Apr. May 1 Federal and federally sponsored agencies1...................... 112,472 137,063 163,290 193,229 195,056 194,926 198,828 200,434 205,020 2 Federal agencies................................................................ 22,760 23,488 24,715 28,606 28,769 28,596 29,397 29,502 29,311 4 3 E D x e p fe o n r s t- e I m D p e o p r a t r t B m a e n n k t 3 2 , . 4 ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,6 9 7 8 1 3 8,7 9 1 6 1 8 9,1 7 9 3 1 8 11,2 61 5 0 0 11,2 6 3 0 9 0 11,2 5 0 9 1 1 11,8 5 8 7 1 6 11,8 5 6 6 8 6 11,8 5 5 5 0 6 5 6 F G e o d v e e r r a n l m H e o n u t s N in a g t i A on d a m l i M ni o st r r t a g t a i g o e n 5 A . s . s .. o .. c .. i . a .. t . i . o .. n ................. 581 588 537 477 476 468 464 459 449 participation certificates6....................................... 3,743 3,141 2,979 2,817 2,817 2,817 2,817 2,775 2,775 7 8 T Po en st n a e l s S se e e rv V ic a e l 7 le .. y .. . A .... u .. t . h ... o .. r . i .. t . y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 6 , , 4 0 3 1 1 5 2 7, ,3 4 6 6 4 0 8 1 , , 9 8 9 3 7 7 11 1 , , 1 7 9 7 0 0 1 1 1 , , 7 3 7 7 0 5 11 1, , 7 5 7 5 0 0 1 1 1 , , 7 6 7 8 0 0 11 1 , , 8 7 4 7 5 0 11 1, , 5 9 3 3 8 0 9 United States Railway Association7............................ 336 356 436 492 492 199 209 219 213 10 Federally sponsored agencies1......................................... 89,712 113,575 138,575 164,623 166,287 166,330 169,431 170,932 175,709 1 1 1 2 F Fe e d d e e r r a a l l H H o o m m e e L L o o a a n n B M a o n r k tg s a .. g .. e . .. C ... o .. r .. p .. o .. r .. a .. t . i . o .. n ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 1 , ,6 3 8 45 6 2 2 7, , 5 2 6 6 3 2 3 2 3 , , 7 3 7 3 1 0 4 2 1, , 2 53 5 6 8 4 2 1 , , 5 8 1 1 8 9 42 2, , 5 27 1 5 4 43 2 , , 7 4 9 0 1 9 4 2 4 , , 4 3 0 5 9 7 47 2 , , 1 4 2 0 1 9 13 Federal National Mortgage Association...................... 31,890 41,080 48,486 55,185 54,605 54,110 54,666 54,183 54,430 14 Federal Land Banks...................................................... 19,118 20,360 16,006 12,365 11,507 11,507 11,507 10,583 10,583 15 Federal Intermediate Credit Banks.............................. 11,174 11,469 2,676 1,821 1,388 1,388 1,388 1,388 1,388 16 Banks for Cooperatives................................................. 4,434 4,843 584 584 584 584 584 220 220 17 Farm Credit Banks1...................................................... 2,548 5,081 33,216 48,153 50,645 50,675 51,689 54,345 56,061 1 1 9 8 S O t t u h d e e r n .. t . . L ... o .. a .. n .. . M .... a .. r . k .. e .. t . i . n .. g .. .. A ... s . s .. o .. c .. i . a .. t . i . o .. n .. 8 ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 515 2 915 2 1,505 1 2,720 1 3,220 1 3,275 2 3,395 2 3,445 2 3,495 2 Memo: 20 Federal Financing Bank debt1,9....................................... 38,580 51,298 67,383 87,460 88,420 89,444 94,101 96,489 98,297 Lending to federal and federally sponsored agencies 21 Export-Import Bank4........................................................ 5,834 6,898 8,353 10,654 10,654 10,654 11,346 11,346 11,346 22 Postal Service7.................................................................... 2,181 2,114 1,587 1,520 1,520 1,520 1,520 1,520 1,288 23 Student Loan Marketing Association8............................ 515 915 1,505 2,720 3,220 3,275 3,395 3,445 3,495 24 Tennessee Valley Authority............................................. 4,190 5,635 7,272 9,465 9,650 9,825 9,955 10,120 10,205 25 United States Railway Association7................................ 336 356 436 492 492 199 209 219 213 Other Lending10 2 27 6 F R a u r r m al e r E s l e H c o tr m ifi e c a A ti d o m n i A ni d s m tra in ti i o s n tr . a .. t . i .. o .. n .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 6 , , 6 0 4 9 7 5 2 4 3 , ,8 60 25 4 3 6 2 , , 4 0 8 5 4 0 3 9 9 , , 1 43 9 1 6 3 9 9 , , 4 2 7 7 1 1 3 1 9 0 , , 8 2 5 1 1 2 4 1 1 0 , , 7 4 9 4 1 3 4 1 3 0 , , 4 6 5 52 6 4 1 4 0 , , 7 9 4 8 6 8 28 Other................................................................................... 6,782 6,951 9,696 13,982 14,142 13,908 15,442 15,731 16,016 1. In September 1977 the Farm Credit Banks issued their first consolidated bonds, of Housing and Urban Development; Small Business Administration; and the and in January 1979 they began issuing these bonds on a regular basis to replace Veterans Administration. the financing activities of the Federal Land Banks, the Federal Intermediate Credit 7. Off-budget. Banks, and the Banks for Cooperatives. Line 17 represents those consolidated 8. Unlike other federally sponsored agencies, the Student Loan Marketing As­ bonds outstanding, as well as any discount notes that have been issued. Lines 1 sociation may borrow from the Federal Financing Bank (FFB) since its obligations 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 and 9. The FFB, which began operations in 1974, is authorized to purchase or sell 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 in 4. Off-budget Aug. 17, 1974, through Sept. 30, 1976; on-budget thereafter. 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 partic­ curities market. ular agency being generally small. The Farmers Home Administration item consists 6. Certificates of participation issued prior to fiscal 1969 by the Government exclusively of agency assets, while the Rural Electrification Administration entry National Mortgage Association acting as trustee for the Farmers Home Admin­ contains both agency assets and guaranteed loans. istration; Department of Health, Education, and Welfare; Department Notes To Table 1.44 1. Immediate positions are net amounts (in terms of par values) of securities 3. Includes all reverse repurchase agreements, including those that have been owned by nonbank dealer firms and dealer departments of commercial banks on arranged to make delivery on short sales and those for which the securities obtained a commitment, that is, trade-date basis, including any such securities that have have been used as collateral on borrowings, i.e., matched agreements. been sold under agreements to repurchase (RPs). The maturities of some repur­ 4. Includes both repurchase agreements undertaken to finance positions and chase agreements are sufficiently long, however, to suggest that the securities “matched book” repurchase agreements. involved are not available for trading purposes. Securities owned, and hence dealer Note. Data for positions are averages of daily figures, in terms of par value, positions, do not include securities to resell (reverse RPs). Before 1981, data for based on the number of trading days in the period. Positions are shown net and immediate positions include forward positions. are on a commitment basis. Data for financing are based on Wednesday figures, 2. Figures cover financing involving U.S. government and federal agency secu­ in terms of actual money borrowed or lent. rities, negotiable CDs, bankers acceptances, and commercial paper. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Financial Statistics □ August 1981 1.46 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1980 1981 Type of issue or issuer, 1978 1979 1980 Dec. Jan.r Feb.r Mar.r Apr.r May 1 All issues, new and refunding1.................................................... 48,607 43,490 48,462 3,859 2,658 2,928 3,879 5,068 3,406 Type of issue 2 General obligation................................................................... 17,854 12,109 14,100 558 728 876 1,249 1,317 1,307 3 Revenue ........................................................................................ 30,658 31,256 34,267 3,297 1,923 2,049 2,619 3,745 2,089 4 Housing Assistance Administration2........................................... 5 U.S. government loans................................................................ 95 125 95 4 7 3 11 6 10 Type of issuer 6 State.............................................................................................. 6,632 4,314 5,304 127 478 530 349 544 639 7 Special district and statutory authority....................................... 24,156 23,434 26,972 2,332 1,442 1,442 1,979 2,701 1,629 8 Municipalities, counties, townships, school districts................... 17,718 15,617 16,090 1,395 731 951 1,541 1,816 1,127 9 Issues for new capital, total.......................................................... 37,629 41,505 46,736 3,760 2,650 2,855 3,845 4,898 3,394 Use of proceeds 10 Education...................................................................................... 5,003 5,130 4,572 198 338 292 515 479 227 11 Transportation............................................................................... 3,460 2,441 2,621 53 147 322 238 121 424 12 Utilities and conservation............................................................ 9,026 8,594 8,149 4Q8 585 452 784 1,262 641 13 Social welfare................................................................................ 10,494 15,968 19,958 2,465 786 881 956 1,001 1,054 14 Industrial aid................................................................................ 3,526 3,836 3,974 295 389 296 512 1,298 408 15 Other purposes............................................................................. 6,120 5,536 7,462 341 405 612 840 737 640 1. Par amounts of long-term issues based on date of sale. Source. Public Securities Association. 2. Only bonds sold pursuant to the 1949 Housing Act, which are secured by contract requiring the Housing Assistance Administration to make annual contri­ butions to tne local authority. 1.47 NEW SECURITY ISSUES of Corporations Millions of dollars 1980 1981 Type of issue or issuer, or use 1978 1979 1980 Nov. Dec; Jan. Feb. Mar. Apr. May 1 All issues1................................................................... 47,230 51,533 73,688 3,936 5,933 5,581 4,157 6,423 6,511 5,347 2 Bonds........................................................................... 36,872 40,208 53,199 2,164 3,044 3,386 2,834 4,275 4,273 2,970 Type of offering 3 Public......................................................................... 19,815 25,814 41,587 1,405 1,719 2,928 2,408 3,778c 3,668 2,490 4 Private placement...................................................... 17,057 14,394 11,612 759 1,325 458 426 497 605 480 Industry group 6 5 M Co a m nu m f e a r c c t i u a r l i n an g d .. .. m ... i . s . c .. e .. l . l . a .. n .. e . o .. u .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . 9 5 , , 5 2 7 4 2 6 9 3 , , 6 9 7 4 8 8 1 6 5 , , 6 4 8 0 8 9 4 1 4 3 2 2 6 5 0 0 9 9 1,6 2 3 3 5 1 1,1 3 4 5 0 6 1,0 2 6 1 4 2 1,3 3 5 0 5 1 1,2 1 6 3 9 8 7 8 T Pu ra b n li s c p u o t r i t l a it t y io .. n .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2, , 0 09 07 2 3 8, , 1 1 5 1 3 9 3 9, , 5 3 5 2 6 9 5 1 6 4 5 7 3 1 1 65 4 3 8 5 0 3 0 5 4 9 5 3 5 1 9 7 4 2 7 1 7 05 4 1,022 9 9 Communication.......................................................... 3,373 4,219 6,683 147 653 62 272 958 553 56 10 Real estate and financial........................................... 9,586 11,094 11,534 732 793 306 430 1,276 1,181 476 11 Stocks......................................................................... 10,358 11,325 20,490 1,772 2,889 2,195 1,323 2,148 2,238 2,377 Type 12 Preferred..................................................................... 2,832 3,574 3,632 256 241 364 149 298 85 164 13 Common..................................................................... 7,526 7,751 16,858 1,516 2,648 1,831 1,174 1,850 2,153c 2,213 Industry group 14 Manufacturing............................................................ 1,241 1,679 4,839 418 844 609 204 735 531 903 15 Commercial and miscellaneous.................................. 1,816 2,623 5,245 509 908 603 589 816 477 958 16 Transportation............................................................ 263 255 549 53 95 124 81 17 146 47 17 Public utility................................................................ 5,140 5,171 6,230 227 669 562 260 414 717 173 18 Communication.......................................................... 264 303 567 113 65 14 31 56 19 Real estate and financial........................................... 1,631 12,931 3,059 452 308 284 159 167 310 296 1. Figures, which represent gross proceeds of issues maturing in more than one 1933, employee stock plans, investment companies other than closed-end, intra­ year, sold for cash in the United States, are principal amount or number of units corporate transactions, and sales to foreigners, multiplied by offering price. Excludes offerings of less than $100,000, secondary offerings, undefined or exempted issues as defined in the Securities Act of Source. Securities and Exchange Commission. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A35 1.48 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1980 1981 Item 1979 1980 Nov. Dec. Jan. Feb. Mar. Apr. Mayr June Investment Companies1 1 Sales of own shares2.................................................. 7,495 15.266 1.289 1,242 1.676 1,347 1.696 2.000 1,785 1,910 2 Redemptions of own shares3..................................... 8,393 12.012 1.086 1.720 1,193 960 1.112 1.594 1,250 1,512 3 Net sales..................................................................... -898 3.254 203 -478 483 387 584 406 535 398 4 Assets4....................................................................... 49,277 58,400 60.329 58.400 56,160 56,452 59.146 58,531 60,081 58,887 5 Cash position5........................................................ 4,983 5.321 5.467 5.321 4.636 4,882 4.971 5,099 5,448 5,199 6 Other....................................................................... 44,294 53,079 54.862 53.079 51.524 51.570 54,175 53.432 54.633 53,688 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 Se­ other in the same group. curities and Exchange Commission. Data reflect newly formed companies after 4. Market value at end of period, less current liabilities. their initial offering of securities. 1.49 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1979 1980 1981 Account 1978 1979 1980 03 04 01 02 03 04 01 1 Corporate profits with inventory valuation and capital consumption adjustment........................ 185.5 196.8 182.7 199.5 189.4 200.2 169.3 177.9 183.3 203.0 2 Profits before tax...................................................... 223.3 255.3 245.5 262.0 255.4 277.1 217.9 237.6 249.5 259.1 3 Profits tax liability...................................................... 82.9 87.6 82.3 88.4 87.2 94.2 71.5 78.5 85.2 91.1 4 Profits after tax.......................................................... 140.3 167.7 163.2 173.6 168.2 182.9 146.4 159.1 164.3 168.0 5 Dividends................................................................ 44.6 50.1 56.0 50.2 51.6 53.9 55.7 56.7 57.7 59.0 6 Undistributed profits............................................. 95.7 117.6 107.2 123.4 116.6 129.0 90.7 102.4 106.6 108.4 7 Inventory valuation.................................................... -24.3 -42.6 -45.6 -46.5 -50.8 -61.4 -31.1 -41.7 -48.4 -39.2 8 Capital consumption adjustment.............................. -13.5 -15.9 -17.2 -16.1 -15.1 -15.4 - 17.6 - 17.9 -17.8 -16.9 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 Financial Statistics □ August 1981 1.50 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1980 1981 Account 1975 1976 1977 1978 1979 Qlr Q2r Q3r Q4r Ql 1 Current assets............................................................ 759.0 826.8 902.1 1,030.0 1,200.9 1,234.0 1,232.2 1,254.9 1,281.1 1,321.4 2 Cash............................................................................ 82.1 88.2 95.8 104.5 116.1 110.5 111.5 113.4 120.9 120.4 3 U.S. government securities....................................... 19.0 23.4 17.6 16.3 15.6 15.2 14.0 16.4 17.1 16.8 4 Notes and accounts receivable.................................. 272.1 292.8 324.7 383.8 456.8 470.3 463.4 478.7 491.6 507.9 5 Inventories................................................................. 315.9 342.4 374.8 426.9 501.7 518.9 525.0 524.5 525.3 542.8 6 Other........................................................................... 69.9 80.1 89.2 98.5 110.8 119.2 118.3 121.9 126.2 133.5 7 Current liabilities...................................................... 451.6 494.7 549.4 665.5 809.1 836.5 826.0 850.5 877.8 911.7 8 Notes and accounts payable...................................... 264.2 281.9 313.2 373.7 456.3 467.7 462.8 477.0 498.5 504.5 9 Other........................................................................... 187.4 212.8 236.2 291.7 352.8 368.8 363.2 373.5 379.3 407.2 10 Net working capital.................................................... 307.4 332.2 352.7 364.6 391.8 397.5 406.2 404.3 403.4 409.7 11 Memo: Current ratio 1............................................... 1.681 1.672 1.642 1.548 1.484 1.475 1.492 1.475 1.460 1.449 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. 1980 1981 Industry 1979 1980 19811 Q2 Q3 Q4 Ql Q21 Q31 Q41 1 Total nonfarm business............................................. 270.46 295.63 320.51 294.36 296.23 299.58 312.24 311.87 322.88 333.09 Manufacturing 2 Durable goods industries........................................... 51.07 58.91 63.99 59.38 58.19 59.77 61.24 60.28 64.90 68.65 3 Nondurable goods industries...................................... 47.61 56.90 63.89 56.32 58.21 58.86 63.27 61.71 65.56 64.80 Nonmanufacturing 4 Mining......................................................................... 11.38 13.51 16.91 12.81 13.86 15.28 16.20 15.93 17.51 17.87 Transportation 5 Railroad................................................................. 4.03 4.25 4.39 4.06 3.98 4.54 4.23 4.10 4.41 4.81 6 Air........................................................................... 4.01 4.01 3.65 4.27 4.06 3.77 3.85 3.17 3.09 4.55 7 Other....................................................................... 4.31 3.82 4.10 3.76 4.18 3.39 3.66 4.21 4.07 4.35 Public utilities 8 Electric................................................................... 27.65 28.12 28.93 27.91 28.14 27.54 27.69 28.98 30.26 28.73 9 Gas and other........................................................ 6.31 7.32 8.33 7.12 7.44 7.41 8.36 8.40 7.98 8.57 10 Trade and services.................................................... 79.26 81.79 85.22 81.07 81.19 82.91 83.43 84.55 84.12 88.33 11 Communication and other2....................................... 34.83 36.99 41.09 37.66 36.97 36.11 40.32 40.54 40.97 42.43 1. Anticipated by business. Source. Survey of Current Business (U.S. Dept, of Commerce). 2. “Other” consists of construction; social services and membership organiza­ tions; and forestry, fisheries, and agricultural services. 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 1980 1981 Account 1975 1976 1977 1978 1979 Ql Q2 Q3 Q4 Ql Assets Accounts receivable, gross 1 Consumer................................................................... 36.0 38.6 44.0 52.6 65.7 67.7 70.2 71.7 73.6 76.1 2 Business..................................................................... 39.3 44.7 55.2 63.3 70.3 70.6 70.3 66.9 72.3 72.7 3 Total....................................................................... 75.3 83.4 99.2 116.0 136.0 138.4 140.4 138.6 145.9 148.7 4 Less: Reserves for unearned income and losses___ 9.4 10.5 12.7 15.6 20.0 20.4 21.4 22.3 23.3 24.3 5 Accounts receivable, net........................................... 65.9 72.9 86.5 100.4 116.0 118.0 119.0 116.3 122.6 124.5 6 Cash and bank deposits............................................. 2.9 2.6 2.6 3.5 7 Securities................................................................... 1.0 1.1 .9 1.3 24.91 23.7 26.1 28.3 27.5 30.8 8 All other..................................................................... 11.8 12.6 14.3 17.3 9 Total assets.................................................................. 81.6 89.2 104.3 122.4 140.9 141.7 145.1 144.7 150.1 155.3 Liabilities 10 Bank loans.................................................................. 8.0 6.3 5.9 6.5 8.5 9.7 10.1 10.1 13.2 13.1 11 Commercial paper...................................................... 22.2 23.7 29.6 34.5 43.3 40.8 40.7 40.5 43.4 44.2 Debt 12 Short-term, n.e.c..................................................... 4.5 5.4 6.2 8.1 8.2 7.4 7.9 7.7 7.5 8.2 13 Long-term, n.e.c..................................................... 27.6 32.3 36.0 43.6 46.7 48.9 50.5 52.0 52.4 51.6 14 Other....................................................................... 6.8 8.1 11.5 12.6 14.2 15.7 16.0 14.6 14.3 17.3 15 Capital, surplus, and undivided profits..................... 12.5 13.4 15.1 17.2 19.9 19.2 19.9 19.8 19.4 20.9 16 Total liabilities and capital......................................... 81.6 89.2 104.3 122.4 140.9 141.7 145.1 144.7 150.1 155.3 1. Beginning Ql 1979, asset items on lines 6, 7, and 8 are combined. Note. Components may not add to totals due to rounding. 1.53 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted Changes in accounts Extensions Repayments receivable Accounts receivable Type outstanding 1981 1981 1981 May 31, 19811 Mar. Apr. May Mar. Apr. May Mar. Apr. May 1 Total............................................................................................ 75,808 -773 1,409 1,813 18,096 18,133 18,983 18,869 16,724 17,170 2 Retail automotive (commercial vehicles).................................. 11,484 -295 -213 -152 749 790 830 1,044 1,003 982 3 Wholesale automotive................................................................ 12,481 -1,075 890 682 5,050 5,865 5,426 6,125 4,975 4,744 4 Retail paper on business, industrial and farm equipment.................................................................. 24,581 556 56 608 1,788 1,384 1,595 1,232 1,328 987 5 Loans on commercial accounts receivable and factored com­ mercial accounts receivable............................................... 8,319 178 139 488 8,142 7,735 8,696 7,964 7,596 8,208 6 All other business credit............................................................ 19,013 -137 537 187 2,367 2,359 2,436 2,504 1,822 2,249 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Financial Statistics □ August 1981 1.54 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1980 1981 Item 1978 1979 1980 Dec. Jan. Feb. Mar. Apr. May June Terms and yields in primary and secondary markets Primary Markets Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars)...................... 62.6 74.4 83.5 90.1 87.0 90.3 90.9 88.5 88.9 94.5 2 Amount of loan (thousands of dollars)..................... 45.9 53.3 59.3 63.0 63.0 65.6 64.5 64.1 65.5 67.9 3 Loan/price ratio (percent)......................................... 75.3 73.9 73.3 72.9 75.6 75.6 73.9 74.7 76.7 74.0 4 Maturity (years)........................................................ 28.0 28.5 28.2 28.2 29.1 29.0 28.7 28.6 28.5 28.1 5 Fees and charges (percent of loan amount)2........... 1.39 1.66 2.10 2.40 2.40 2.59 2.64 2.61 2.60 2.47 6 Contract rate (percent per annum).......................... 9.30 10.48 12.25 12.80 12.80 13.02 13.48 13.62 13.56 14.07 Yield (percent per annum) 1 FHLBB series5.......................................................... 9.54 10.77 12.65 13.28 13.26 13.54 14.02 14.15 14.10 14.54 8 HUD series4............................................................... 9.68 11.15 13.95 15.05 14.95 15.10 15.25 15.70 16.35 16.40 Secondary Markets Yield (percent per annum) 9 FHA mortgages (HUD series)5................................ 9.70 10.87 13.42 14.08 14.23 14.79 15.04 15.91 16.03 16.31 10 GNMA securities6...................................................... 8.98 10.22 12.55 13.62 13.50 14.13 14.22 14.69 15.31 15.02 FNMA auctions7 11 Government-underwritten loans............................ 9.77 11.17 14.11 15.21 14.87 15.24 15.67 16.54 16.43 16.17 12 Conventional loans................................................. 10.01 11.77 14.43 15.54 14.95 15.05 15.33 15.66 16.44 16.30 Activity in secondary markets Federal National Mortgage Association Mortgage holdings (end of period) 13 Total........................................................................... 43,311 51,091 57,327 57,327 57,390 57,434 57,362 57,436 57,586 57,657 1 15 4 F V H A A -g - u in a s r u a r n e t d ee .. d .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 1 0 , , 2 5 4 4 3 4 2 1 4 0 , , 4 4 8 9 9 6 38,969 s 38,969 38,955 38,972 38,878 38,919 39,030 38,988 16 Conventional.......................................................... 11,524 16,106 18,358 18,358 18,435 18,462 18,484 18,517 18,557r 18,699 Mortgage transactions (during period) 17 Purchases................................................................... 12,303 10,805 8,100 855 185 161 87 206 283 247 18 Sales........................................................................... 9 0 0 0 0 0 0 0 0 0 Mortgage commitments9 19 Contracted (during period)....................................... 18,959 10,179 8,044 403 241 244 320 383 802 1,110 20 Outstanding (end of period)..................................... 9,185 6,409 3,278 3,278 3,063 2,683 2,173 2,031 2,328 3,103 Auction of 4-month commitments to buy Government-underwritten loans 21 Offered................................................................... 12,978 8,860 8,605 242.1 210.7 155.3 145.3 139.1 2,048 237.6 22 Accepted.................................................................. 6,747.2 3,921 4,002 110.8 93.0 104.7 104.7 114.5 179.1 216.1 Conventional loans 23 Offered................................................................... 9,933.0 4,495 3,639 84.8 32.0 108.6 149.2 126.9 281.3 307.1 24 Accepted................................................................ 5,111 2,344 1,749 54.1 30.3 79.1 97.6 92.0 113.2 142.0 Federal Home Loan Mortgage Corporation Mortgage holdings (end of period)™ 25 Total........................................................................... 3,064 4,035 5,067 5,067 5,039 5,107 5,161 5,176 5,223 5,257 26 FHA/VA................................................................. 1,243 1,102 1,033 1,033 1,029 1,025 1,021 1,017 1,013 1,009 27 Conventional.......................................................... 1,165 1,957 2,830 2,830 2,825 2,883 2,931 2,952 2,988 3,016 Mortgage transactions (during period) 28 Purchases................................................................... 6,525 5,717 3,722 285 152 174 148 125 480 139 29 Sales........................................................................... 6,211 4,544 2,526 48 168 94 127 97 422 94 Mortgage commitments11 30 Contracted (during period)....................................... 7,451 5,542 3,859 126 203 294 768 886 1,016 1,309 31 Outstanding (end of period)..................................... 1,410 797 447 653 487 394 699 678 322 1,018 1. Weighted averages based on sample surveys of mortgages originated by major assuming prepayment in 12 years on pools of 30-year FHA/VA mortgages carrying institutional lender groups. Compiled by the Federal Home Loan Bank Board in the prevailing ceiling rate. Monthly figures are unweighted averages of Monday cooperation with the Federal Deposit Insurance Corporation. 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 serv­ or the seller) in order to obtain a loan. icing) on accepted bids in Federal National Mortgage Association’s auctions of 4- 3. Average effective interest rates on loans closed, assuming prepayment at the month commitments to purchase home mortgages, assuming prepayment in 12 end of 10 years. 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. Beginning March 1980, FHA-insured and VA-guaranteed mortgage holdings 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing in lines 14 and 15 are combined. Administration-insured first mortgages for immediate delivery in the private sec­ 9. Includes some multifamily and nonprofit hospital loan commitments in ad­ ondary market. Any gaps in data are due to periods of adjustment to changes in dition to 1- to 4-family loan commitments accepted in FNMA’s free market auction maximum permissible contract rates. system, and through the FNMA-GNMA tandem plans. 6. Average net yields to investors on Government National Mortgage Associ­ 10. Includes participation as well as whole loans. ation guaranteed, mortgage-backed, fully modified pass-through securities, 11. Includes conventional and government-underwritten loans. 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 1980 1981 Type of holder, and type of property 1978 1979 1980 Ql Q2 Q3 Q4 Ql 1All holders......................................................................... 1,169,412 1,326,750 1,451,840 1,357,660 1,380,928 1,414,881 1,451,840 1,474,943 2 1- to 4-family..................................................................... 765,217 878,931 960,422 897,608 910,286 935,393 960,422 973,601 3Multifamily..................... ................................................. 121,138 128,852 136,580 130,363 132,194 134,193 136,580 139,087 4Commercial....................................................................... 211,851 236,451 258,338 242,776 247,444 251,651 258,338 262,140 5Farm.................................................................................. 71,206 82,516 96,500 86,913 91,004 93,644 96,500 100,115 6Major financial institutions............................................... 848,177 938,567 998,386 951,276 958,750 977,281 998,386 1,008,265 7 Commercial banks1........................................................ 214,045 245,187 264,602 250,702 253,103 258,003 264,602 268,102 8 1- to 4-family.............................................................. 129,167 149,460 160,746 152,553 153,753 156,737 160,746 162,872 9 Multifamily.................................................................. 10,266 11,180 12,304 11,557 11,764 11,997 12,304 12,467 10 Commercial................................................................ 66,115 75,957 82,688 77,993 79,110 80,626 82,688 83,782 11 Farm........................................................................... 8,497 8,590 8,864 8,599 8,476 8,643 8,864 8,981 12 Mutual savings banks.................................................... 95,157 98,908 99,827 99,151 99,150 99,306 99,827 99,840 13 1- to 4-family.............................................................. 62,252 64,706 65,307 64,865 64,864 64,966 65,307 65,316 14 Multifamily.................................................................. 16,529 17,340 17,180 17,223 17,223 17,249 17,340 17,342 15 Commercial................................................................ 16,319 16,963 17,120 17,004 17,004 17,031 17,120 17,122 16 Farm........................................................................... 57 59 60 59 59 60 60 60 17 Savings and loan associations....................................... 432,808 475,688 502,812 478,952 481,042 491,895 502,812 507,040 18 1- to 4-family.............................................................. 356,114 394,345 419,446 398,009 399,746 409,896 419,446 422,964 19 Multifamily.................................................................. 36,053 37,579 38,113 37,215 37,329 37,728 38,113 38,443 20 Commercial................................................................ 40,461 43,764 45,253 43,728 43,967 44,271 45,253 45,633 21 Life insurance companies............................................. 106,167 118,784 131,145 122,471 125,455 128,077 131,145 133,283 22 1- to 4-family.............................................................. 14,436 16,193 17,911 16,850 17,796 17,996 17,911 18,203 23 Multifamily.................................................................. 19,000 19,274 19,614 19,590 19,284 19,357 19,614 19,934 24 Commercial................................................................ 62,232 71,137 80,776 73,618 75,693 77,995 80,776 82,093 25 Farm........................................................................... 10,499 12,180 12,844 12,413 12,682 12,729 12,844 13,053 26Federal and related agencies............................................. 81,739 97,084 114,300 103,921 108,539 110,526 114,300 116,306 27 Government National Mortgage Association............... 3,509 3,852 4,642 3,919 4,466 4,389 4,642 4,966 28 1- to 4-family.............................................................. 877 763 704 749 736 719 704 730 29 Multifamily.................................................................. 2,632 3,089 3,938 3,170 3,730 3,670 3,938 4,236 30 Farmers Home Administration..................................... 926 1,274 3,492 2,845 3,375 3,525 3,492 2,837 31 1- to 4-family.............................................................. 288 417 916 1,139 1,383 978 916 1,321 32 Multifamily.................................................................. 320 71 610 408 636 774 610 528 33 Commercial................................................................ 101 174 411 409 402 370 411 479 34 Farm........................................................................... 217 612 1,555 889 954 1,403 1,555 509 35 Federal Housing and Veterans Administration........... 5,305 5,555 5,640 5,621 5,691 5,600 5,640 5,723 36 1- to 4-family.............................................................. 1,673 1,955 2,051 2,022 2,085 1,986 2,051 2,098 37 Multifamily.................................................................. 3,632 3,600 3,589 3,599 3,606 3,614 3,589 3,625 38 Federal National Mortgage Association...................... 43,311 51,091 57,327 53,990 55,419 55,632 57,327 57,362 39 1- to 4-family.............................................................. 37,579 45,488 51,775 48,394 49,837 50,071 51,775 51,842 40 Multifamily.................................................................. 5,732 5,603 5,552 5,596 5,582 5,561 5,552 5,520 41 Federal Land Banks...................................................... 25,624 31,277 38,131 33,311 35,574 36,837 38,131 40,258 42 1- to 4-family.............................................................. 927 1,552 2,099 1,708 1,893 1,985 2,099 2,228 43 Farm........................................................................... 24,697 29,725 36,032 31,603 33,681 34,852 36,032 38,030 44 Federal Home Loan Mortgage Corporation............... 3,064 4,035 5,068 4,235 4,014 4,543 5,068 5,160 45 1- to 4-family.............................................................. 2,407 3,059 3,873 3,210 3,037 3,459 3,873 3,952 46 Multifamily.................................................................. 657 976 1,195 1,025 977 1,084 1,195 1,208 47 Mortgage pools or trusts2................................................. 88,633 119,278 142,258 124,632 129,647 136,583 142,258 147,251 48 Government National Mortgage Association............... 54,347 76,401 93,874 80,843 84,282 89,452 93,874 97,184 49 1- to 4-family.............................................................. 52,732 74,546 91,602 78,872 82,208 87,276 91,602 94,810 50 Multifamily.................................................................. 1,615 1,855 2,272 1,971 2,074 2,176 2,272 2,374 51 Federal Home Loan Mortgage Corporation............... 11,892 15,180 16,854 15,454 16,120 16,659 16,854 17,100 52 1- to 4-family.............................................................. 9,657 12,149 13,471 12,359 12,886 13,318 13,471 13,680 53 Multifamily.................................................................. 2,235 3,031 3,383 3,095 3,234 3,341 3,383 3,420 54 Farmers Home Administration..................................... 22,394 27,697 31,530 28,335 29,245 30,472 31,530 32,967 55 1- to 4-family.............................................................. 13,400 14,884 16,683 14,926 15,224 16,226 16,683 16,640 56 Multifamily.................................................................. 1,116 2,163 2,612 2,159 2,159 2,235 2,612 2,825 57 Commercial................................................................ 3,560 4,328 5,271 4,495 4,763 5,059 5,271 5,382 58 Farm........................................................................... 4,318 6,322 6,964 6,755 7,099 6,952 6,964 8,120 59 Individual and others3...................................................... 150,863 171,821 196,896 177,831 183,99? 190,491 196,896 203,121 60 1- to 4-family.................................................................. 83,708 99,414 113,838 101,952 104,8^8 109,780 113,838 116,945 61 Multifamily..................................................................... 21,351 23,251 26,058 23,755 24,596 25,407 26,058 27,165 62 Commercial................................................................... 22,883 24,128 26,819 25,529 26,505 26,299 26,819 27,649 63 Farm............................................................................... 22,921 25,028 30,181 26,595 28.053 29,005 30,181 31,362 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, state terpolations and extrapolations when required, are estimated mainly by the Federal and local credit agencies, state and local retirement funds, noninsured pension Reserve. Multifamily debt refers to loans on structures of five or more units. funds, credit unions, and U.S. agencies for which amounts are small or separate data are not readily available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Financial Statistics □ August 1981 1.56 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change Millions of dollars 1980 1981 Holder, and type of credit 1978 1979 1980 Apr. May Amounts outstanding (end of period) 1 Total........................................................ 273,645 312,024 313,435 313,435 310,554 309,188 310,766 313,419 315,465 318,459 By major holder 2 Commercial banks.................................. 136,016 154,177 145,765 145,765 143,749 142,030 141,897 142,070 142,143 143,310 3 Finance companies.................................. 54,298 68,318 76,756 76,756 77,131 78,090 79,490 81,033 81,794 82,723 4 Credit unions........................................... 44,334 46,517 44,041 44,041 43,601 43,776 44,212 44,390 45,055 45,686 5 Retailers2................................................ 25,987 28,119 29,410 29,410 28,300 27,329 26,965 27,227 27,319 27,412 6 Savings and loans................................... 7,097 8,424 9,911 9,911 10,023 10,173 10,458 10,792 11,148 11,115 7 Gasoline companies................................ 3,220 3,729 4,717 4,717 4,929 4,958 4,898 5,046 5,157 5,364 8 Mutual savings banks.............................. 2,693 2,740 2,835 2,835 2,821 2,832 2,846 2,861 2,849 2,849 By major type of credit 9 Automobile............................................. 101,647 116,362 116,327 116,327 115,262 115,677 117,517 118,479 118,932 119,685 10 Commercial banks.............................. 60,510 67,367 61,025 61,025 59,608 59,061 59,378 59,252 59,169 59,192 11 Indirect paper.................................. 33,850 38,338 34,857 34,857 33,947 33,667 34,016 33,931 33,913 33,996 12 Direct loans..................................... 26,660 29,029 26,168 26,168 25,661 25,394 25,362 25,321 25,256 25,196 13 Credit unions....................................... 21,200 22,244 21,060 21,060 20,850 20,933 21,142 21,227 21,545 21,847 14 Finance companies.............................. 19,937 26,751 34,242 34,242 34,804 35,683 36,997 38,000 38,218 38,646 15 Revolving................................................ 48,309 56,937 59,862 59,862 58,985 57,566 56,831 57,322 57,524 58,470 16 Commercial banks.............................. 24,341 29,862 30,001 30,001 29,952 29,412 29,051 29,127 29,096 29,722 17 Retailers............................................... 20,748 23,346 25,144 25,144 24,104 23,196 22,882 23,149 23,271 23,384 18 Gasoline companies............................ 3,220 3,729 4,717 4,717 4,929 4,958 4,898 5,046 5,157 5,364 19 Mobile home........................................... 15,235 16,838 17,327 17,327 17,244 17,189 17,273 17,422 17,626 17,724 20 Commercial banks.............................. 9,545 10,647 10,376 10,376 10,271 10,174 10,153 10,142 10,159 10,179 21 Finance companies.............................. 3,152 3,390 3,745 3,745 3,741 3,740 3,762 3,828 3,909 3,990 22 Savings and loans................................ 2,067 2,307 2,737 2,737 2,768 2,809 2,888 2,980 3,079 3,069 23 Credit unions....................................... 471 494 469 469 464 466 470 472 479 486 24 Other........................................................ 108,454 121,887 119,919 119,919 119,063 118,756 119,145 120,196 121,383 122,580 25 Commercial banks.............................. 41,620 46,301 44,363 44,363 43,918 43,383 43,315 43,549 43,719 44,217 26 Finance companies.............................. 31,209 38,177 38,769 38,769 38,586 38,667 38,731 39,205 39,667 40,087 27 Credit unions....................................... 22,663 23,779 22,512 22,512 22,287 22,377 22,600 22,691 23,031 23,353 28 Retailers............................................... 5,239 4,773 4,266 4,266 4,196 4,133 4,083 4,078 4,048 4,028 29 Savings and loans................................ 5,030 6,117 7,174 7,174 7,255 7,364 7,570 7,812 8,069 8,046 30 Mutual savings banks.......................... 2,693 2,740 2,835 2,835 2,821 2,832 2,846 2,861 2,849 2,849 Net change (during period)3 31 Total........................................................ 43,079 38,381 1,410 1,619 869 1,996 3,108 2,331 1,346 1,930 By major holder 32 Commercial banks.................................. 23,641 18,161 -8,412 -276 -1,357 -544 612 -345 -14 614 33 Finance companies.................................. 9,430 14,020 8,438 860 1,113 1,530 1,539 1,253 409 570 34 Credit unions........................................... 6,729 2,185 -2,475 378 288 444 287 272 391 219 35 Retailers2................................................. 2,497 2,132 1,291 316 409 103 253 531 -3 416 36 Savings and loans................................... 7 1,327 1,485 190 232 254 418 421 519 45 37 Gasoline companies................................ 257 509 988 83 106 209 -6 141 67 78 38 Mutual savings banks.............................. 518 47 95 68 78 0 5 58 -23 -12 By major type of credit 39 Automobile............................................. 18,736 14,715 -35 302 -63 979 1,682 428 -195 57 40 Commercial banks.............................. 10,933 6,857 -6,342 -491 -1,253 -346 229 -461 -208 -214 41 Indirect paper.................................. 6,471 4,488 -3,481 -181 -839 -229 268 -256 -83 -44 42 Direct loans..................................... 4,462 2,369 -2,861 -310 -414 -117 -39 -205 -125 -170 43 Credit unions....................................... 3,101 1,044 -1,184 174 206 211 132 142 160 106 44 Finance companies.............................. 4,702 6,814 7,491 619 984 1,114 1,321 747 -147 165 45 Revolving................................................ 9,035 8,628 2,925 616 557 441 587 838 350 1,018 46 Commercial banks.............................. 5,967 5,521 139 211 59 166 346 153 230 580 47 Retailers............................................... 2,811 2,598 1,798 322 392 66 247 544 53 360 48 Gasoline companies............................ 257 509 988 83 106 209 -6 141 67 78 49 Mobile home........................................... 286 1,603 488 66 -24 -47 88 145 243 89 50 Commercial banks.............................. 419 1,102 -271 -34 -85 -102 -35 -15 7 -12 51 Finance companies.............................. 74 238 355 48 15 18 25 58 78 85 52 Savings and loans................................ -276 240 430 47 46 31 97 99 152 14 53 Credit unions....................................... 69 23 -25 5 0 6 1 3 6 2 54 Other........................................................ 15,022 13,435 -1,968 635 399 623 751 920 948 766 55 Commercial banks.............................. 6,322 4,681 -1,938 38 -78 -262 72 -22 -43 260 56 Finance companies.............................. 4,654 6,968 592 193 114 398 193 448 478 320 57 Credit unions....................................... 3,559 1,118 -1,266 199 82 227 154 127 225 111 58 Retailers............................................... -314 -466 -507 -6 17 37 6 -13 -56 56 59 Savings and loans................................ 283 1,087 1,056 143 186 223 321 322 367 31 60 Mutual savings banks.......................... 518 47 95 68 78 0 5 58 -23 -12 1. The Board’s series cover most short- and intermediate-term credit extended 2. Includes auto dealers and excludes 30-day charge credit held by travel and to individuals through regular business channels, usually to finance the purchase entertainment companies. of consumer goods and services or to refinance debts incurred for such purposes, 3. Net change equals extensions minus liquidations (repayments, charge-offs, and scheduled to be repaid (or with the option of repayment) in two or more and other credit); figures for all months are seasonally adjusted. installments. 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 1981 Holder, and type of credit 1978 1979 1980 Dec. Jan. Feb. Mar. Apr. May June Extensions 1 Total........................................................................... 297,668 324,777 305,887 27,149 27,059 28,706 29,822 28,878 28,149 29,005 By major holder 2 Commercial banks.................................................... 142.433 154.733 133.605 11.484 10.397 11.648 12.676 11.986 12.055 12,483 3 Finance companies.................................................... 50.505 61.518 60.801 5.185 5.904 6.193 5.911 5.218 4.937 5,251 4 Credit unions.............................................................. 38.111 34.926 29.594 3.035 2.994 3.167 3.153 3.181 3.212 3,137 5 Retailers'................................................................... 44.571 47.676 50.959 4.497 4.673 4.50ti 4.685 5.002 4.486 5,018 6 Savings and loans...................................................... 3.724 5.901 6.621 658 715 751 1.038 985 1.068 649 7 Gasoline companies.................................................. 16.017 18.005 22.402 2.061 2,130 2.284 2.180 2,272 2,243 2,296 8 Mutual savings banks................................................. 2.307 2.018 1.905 229 246 163 179 234 148 171 By major type of credit 9 Automobile................................................................ 87.981 93.901 83.002 7.234 7.237 8.333 8.700 7.205 7,320 7.442 10 Commercial banks................................................. 52.969 53.554 40.657 3.271 2.598 3.560 4.117 3.438 3.627 3,652 11 Indirect paper.................................................... 29.342 29.623 22.269 1.857 1.230 1.944 2.365 1.929 2,071 2,126 12 Direct loans........................................................ 23.627 23.931 18.388 1.414 1.368 1.616 1.752 1.509 1.556 1,526 13 Credit unions.......................................................... 18.539 17.397 15.294 1.538 1.592 ‘ 1,613 1.586 1.589 1.608 1,553 14 Finance companies................................................. 16.473 22.950 27.051 2.425 3.047 3.160 2.997 2.178 2,085 2.237 15 Revolving................................................................... 105.125 120.174 129.580 11.614 11.483 11.867 12.071 12.352 11.904 12,668 16 Commercial banks................................................. 51.333 61.048 61.847 5.554 5.185 5.602 5.695 5.561 5.613 5,905 17 Retailers.................................................................. 37.775 41.121 45.331 3.999 4.168 3.981 4.196 4.519 4.048 4.467 18 Gasoline companies............................................... 16.017 18.005 22.402 2.061 2.130 2,284 2.180 2.272 2.243 2,296 19 Mobile home.............................................................. 5,412 6.471 5.098 479 383 409 641 551 609 488 20 Commercial banks................................................. 3.697 4.542 2.942 254 171 185 259 251 250 259 21 Finance companies................................................. 886 797 898 89 81 88 88 100 112 122 22 Savings and loans................................................... 609 948 1.146 119 119 118 269 184 230 93 23 Credit unions.......................................................... 220 184 113 17 12 18 25 16 17 14 24 Other........................................................................... 99.150 104.231 88.207 7.822 7.956 8.097 8.410 8.770 8,316 8,407 25 Commercial banks................................................. 34.434 35.589 28.159 2.405 2.443 2.301 2.605 2.736 2.565 2,667 26 Finance companies................................................. 33.146 37.771 32.852 2.671 2.776 2.945 2.826 2.940 2.740 2,892 27 Credit unions.......................................................... 19.352 17.345 14.187 1.480 1.390 1.536 1.542 1.576 1.587 1,570 28 Retailers.................................................................. 6.796 6.555 5.628 498 505 519 489 483 438 551 29 Savings and loans................................................... 3.115 4.953 5.476 539 596 633 769 801 838 556 30 Mutual savings banks............................................. 2.307 2.018 1.905 229 246 163 179 234 148 171 Liquidations 31 Total........................................................................... 254,589 286,396 304,477 25,530 26,190 26,710 26,714 26,547 26,803 27,075 By major holder 32 Commercial banks..................................................... 118.792 136.572 142.017 11.760 11.754 12.192 12.064 12.331 12.069 11,869 33 Finance companies..................................................... 41.075 47.498 52.363 4.325 4.791 4.663 4.372 3.965 4.528 4,681 34 Credit unions.............................................................. 31.382 32.741 32.069 2.657 2.706 2.723 2.866 2.909 2.821 2.918 35 Retailers1.................................................................... 42.074 45.544 49.668 4.181 4.264 4.397 4.432 4.471 4.489 4,602 36 Savings and loans...................................................... 3.717 4.574 5.136 468 483 497 620 564 549 604 37 Gasoline companies................................................... 15.760 17.496 21.414 1.978 2.024 2.075 2,186 2.131 2.176 2,218 38 Mutual savings banks................................................. 1.789 1.971 1.810 161 168 163 174 176 171 183 By major type of credit 39 Automobile ............................................................... 69.245 79.186 83.037 6.932 7.300 7.354 7.018 6.777 7.515 7,385 40 Commercial banks................................................. 42.036 46.697 46.999 3.762 3.851 3.906 3.888 3.899 3.835 3,866 41 Indirect paper..................................................... 22.871 25.135 25.750 2,038 2.069 2.173 2.097 2.185 2.154 2,170 42 Direct loans........................................................ 19.165 21.562 21.249 1.724 1.782 1.733 1.791 1.714 1.681 1,696 43 Credit unions.......................................................... 15.438 16.353 16.478 1.364 1.386 1.402 1.454 1.447 1.448 1,447 44 Finance companies................................................. 11.771 16.136 19.560 1.806 2.063 2.046 1.676 1.431 2.232 2,072 45 Revolving.................................................................... 96.090 111.546 126.655 10.998 10.926 11.426 11.484 11.514 11.554 11,650 46 Commercial banks................................................. 45.366 55.527 61.708 5.343 5.126 5.436 5.349 5.408 5.383 5,325 47 Retailers.................................................................. 34.964 38.523 43.533 3.677 3.776 3.915 3.949 3.975 3.995 4,107 48 Gasoline companies............................................... 15.760 17.496 21.414 1.978 2.024 2.075 2.186 2.131 2.176 2,218 49 Mobile home.............................................................. 5.126 4.868 4.610 413 407 456 553 406 366 399 50 Commercial banks................................................. 3.278 3.440 3.213 288 256 287 294 266 243 271 51 Finance companies................................................. 812 559 543 41 66 70 63 42 34 37 52 Savings and loans................................................... 885 708 716 72 73 87 172 85 78 79 53 Credit unions.......................................................... 151 161 138 12 12 12 24 13 11 12 54 Other........................................................................... 84.128 90.796 90.175 7.187 7.557 7.474 7.659 7.850 7.368 7,641 55 Commercial banks................................................. 28,112 30.908 30.097 2.367 2.521 2.563 2.533 2.758 2.608 2,407 56 Finance companies................................................. 28,492 30.803 32.260 2.478 2.662 2.547 2.633 2.492 2.262 2,572 57 Credit unions.......................................................... 15,793 16.227 15.453 1.281 1.308 1.309 1.388 1.449 1.362 1.459 58 Retailers.................................................................. 7,110 7.021 6.135 504 488 482 483 496 494 495 59 Savings and loans................................................... 2,832 3.866 4.420 396 410 410 448 479 471 525 60 Mutual savings banks............................................. 1.789 1.971 1.810 161 168 163 174 176 171 183 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 Financial Statistics □ August 1981 1.58 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1978 1979 1980 Transaction category, sector 1975 1976 1977 1978 1979 1980 HI H2 HI H2 HI H2 Nonfinancial sectors 1Total funds raised...................................................... 210.8 271.9 338.5 400.4 394.9 365.4 384.8 416.0 380.5 408.2 325.8 404.9 2Excluding equities...................................................... 200.7 261.0 335.3 398.3 390.6 353.9 387.4 409.2 377.7 402.3 318.0 389.7 By sector and instrument 3U.S. government........................................................ 85.4 69.0 56.8 53.7 37.4 79.2 61.4 46.0 28.6 46.1 64.7 93.7 4 Treasury securities................................................. 85.8 69.1 57.6 55.1 38.8 79.8 62.3 47.9 30.9 46.6 65.3 94.3 5 Agency issues and mortgages................................ -.4 -.1 -.9 -1.4 -1.4 -.6 -.9 -1.9 -2.3 -.5 -.6 -.6 6All other nonfinancial sectors.................................... 125.4 202.8 281.7 346.7 357.6 286.2 323.4 370.0 351.9 362.1 261.1 311.2 7 Corporate equities................................................. 10.1 10.8 3.1 2.1 4.3 11.5 -2.6 6.8 2.8 5.9 7.8 15.3 8 Debt instruments.................................................... 115.3 192.0 278.6 344.6 353.2 274.7 326.0 363.2 349.1 356.2 253.4 295.9 9 Private domestic nonfinancial sectors................... 112.1 182.0 267.8 314.4 336.4 256.7 302.8 326.1 338.6 333.0 231.9 281.5 10 Corporate equities............................................. 9.9 10.5 2.7 2.6 3.5 9.5 -1.8 7.0 2.8 4.1 6.0 13.0 11 Debt instruments................................................. 102.2 171.5 265.1 311.8 333.0 247.2 304.6 319.1 335.8 328.9 225.9 268.5 12 Debt capital instruments................................ 98.4 123.5 175.6 196.6 199.9 179.7 188.3 205.0 198.8 201.1 171.9 187.4 13 State and local obligations.......................... 16.1 15.7 23.7 28.3 18.9 25.0 27.8 28.7 16.0 21.8 18.5 31.6 14 Corporate bonds......................................... 27.2 22.8 21.0 20.1 21.2 27.9 20.6 19.6 22.4 19.9 33.6 22.3 Mortgages lb Home Mortgages...................................... 39.5 63.6 96.3 104.6 109.1 81.5 100.1 109.1 109.8 108.5 70.7 92.8 16 Multifamily residential............................ * 1.8 7.4 10.2 8.9 8.7 9.3 11.2 8.1 9.7 8.1 9.0 17 Commercial............................................. 11.0 13.4 18.4 23.3 25.7 21.6 21.2 25.4 26.0 25.4 25.5 19.3 18 Farm........................................................ 4.6 6.1 8.8 10.2 16.2 14.0 9.3 11.1 16.6 15.9 15.5 12.4 19 Other debt instruments.................................. 3.8 48.0 89.5 115.2 133.0 67.2 116.3 114.1 137.0 127.8 54.0 81.1 20 Consumer credit......................................... 9.7 25.6 40.6 50.6 44.2 3.1 50.1 51.0 48.3 39.0 -4.3 8.9 21 Bank loans n.e.c.......................................... -12.3 4.0 27.0 37.3 50.6 37.9 43.1 31.4 48.2 52.9 9.7 65.0 22 Open jnarket paper.................................... -2.6 4.0 2.9 5.2 10.9 5.8 5.3 5.1 12.0 9.7 29.7 -18.1 23 Other............................................................ 9.0 14.4 19.0 22.2 27.3 20.4 17.8 26.5 28.4 26.2 18.9 25.2 24 By borrowing sector........................................... 112.1 182.0 267.8 314.4 336.4 254.2 302.8 326.1 338.6 333.0 231.9 281.5 25 State and local governments.......................... 13.7 15.2 20.4 23.6 15.5 20.7 21.0 26.1 13.0 18.0 16.6 30.4 26 Households...................................................... 49.7 90.5 139.9 162.6 164.9 100.8 156.1 169.1 167.6 161.2 88.7 113.7 27 Farm................................................................ 8.8 10.9 14.7 18.1 25.8 19.0 15.3 20.8 23.5 28.1 20.9 14.7 28 Nonfarm noncorporate.................................... 2.0 4.7 12.9 15.4 15.9 12.5 16.4 14.4 15.5 15.9 10.3 15.5 29 Corporate........................................................ 37.9 60.7 79.9 94.8 114.3 101.1 93.9 95.7 118.9 109.7 95.4 107.2 30 Foreign................................................................... 13.3 20.8 13.9 32.3 21.2 29.9 20.6 43.9 13.3 29.1 29.3 29.7 31 Corporate equities............................................. .2 .3 .4 -.5 .9 2.2 -.8 -.2 * 1.7 1.8 2.3 32 Debt instruments................................................. 13.2 20.5 13.5 32.8 20.3 27.7 21.4 44.1 13.3 27.3 27.5 27.4 33 Bonds.............................................................. 6.2 8.6 5.1 4.0 3.9 .8 5.0 3.0 3.0 4.7 2.0 -.4 34 Bank loans n.e.c.............................................. 3.9 6.8 3.1 18.3 2.3 11.8 9.3 27.3 1.0 3.5 4.4 18.7 35 Open market paper....................................... .3 1.9 2.4 6.6 11.2 10.1 3.6 9.6 6.1 16.3 15.7 4.5 36 U.S. government loans.................................. 2.8 3.3 3.0 3.9 3.0 5.0 3.6 4.2 3.1 2.8 5.4 4.6 Financial sectors 37Total funds raised...................................................... 12.7 24.1 54.0 81.4 88.5 70.8 80.7 82.1 86.3 90.7 53.7 84.2 By instrument 38U.S. government related........................................... 13.5 18.6 26.3 41.4 52.4 47.5 38.5 44.3 45.8 59.0 45.8 48.9 39 Sponsored credit agency securities........................ 2.3 3.3 7.0 23.1 24.3 24.3 21.9 24.3 21.5 27.0 25.1 23.7 40 Mortgage pool securities....................................... 10.3 15.7 20.5 18.3 28.1 23.2 16.6 20.1 24.2 32.0 20.7 25.2 41 Loans from U.S. government................................ .9 -.4 -1.2 - - - 42Private financial sectors............................................. -.8 5.5 27.7 40.0 36.1 23.3 42.2 37.8 40.5 31.7 7.9 35.3 43 Corporate equities................................................. .6 1.0 .9 1.7 2.3 3.4 2.2 1.1 2.0 2.5 2.6 4.3 44 Debt instruments.................................................... -1.4 4.4 26.9 38.3 33.8 19.8 40.0 36.7 38.4 29.2 5.3 31.0 45 Corporate bonds................................................. 2.9 5.8 10.1 7.5 7.8 7.2 8.5 6.4 8.7 7.0 10.5 3.5 46 Mortgages............................................................ 2.3 2.1 3.1 .9 -1.2 -.9 2.1 -.3 -.5 -1.9 -6.8 4.8 47 Bank loans n.e.c.................................................. -3.7 -3.7 -.3 2.8 -.4 1.0 2.5 3.1 -.7 -.2 1.0 -1.9 48 Open market paper and RPs............................ 1.1 2.2 9.6 14.6 18.4 5.4 13.5 15.7 23.0 13.8 -3.6 14.5 49 Loans from Federal Home Loan Banks........... -4.0 -2.0 4.3 12.5 9.2 7.1 13.2 11.8 7.8 10.5 4.1 10.2 By sector 50Sponsored credit agencies......................................... 3.2 2.9 5.8 23.1 24.3 24.4 21.9 24.3 21.5 27.0 25.1 23.7 51 Mortgage pools.......................................................... 10.3 15.7 20.5 18.3 28.1 23.2 16.6 20.1 24.2 32.0 20.7 25.2 52Private financial sectors............................................. -.8 5.5 27.7 40.0 36.1 23.3 42.2 37.8 40.5 31.7 7.9 35.3 53 Commercial banks................................................. 1.2 2.3 1.1 1.3 1.6 .6 1.5 1.1 1.3 1.8 .8 .3 54 Bank affiliates........................................................ .3 -.8 1.3 6.7 4.5 5.6 5.8 7.6 6.2 2.9 4.5 6.6 55 Savings and loan associations............................... -2.3 .1 9.9 14.3 11.4 6.4 16.4 12.2 9.9 12.9 -3.1 17.0 56 Other insurance companies.................................... 1.0 .9 .9 1.1 1.0 .8 1.0 1.1 1.0 .9 .8 .7 57 Finance companies................................................. .5 6.4 17.6 18.6 18.9 8.8 18.9 18.2 23.5 14.3 5.5 10.0 58 REITs..................................................................... -1.4 -2.4 -2.2 -1.0 -.4 -.9 -1.0 -1.0 -.6 -.1 -1.4 -2.0 59 Open-end investment companies.......................... -.1 -1.0 -.9 -1.0 -1.0 2.0 -.5 -1.5 -1.0 -.9 .9 2.6 All sectors 60Total funds raised, by instrument............................ 223.6 295.9 392.5 481.8 483.4 434.1 465.5 498.1 466.7 498.9 379.5 489.2 61 Investment company shares..................................... -.1 -1.0 -.9 -1.0 -1.0 2.0 -.5 -1.5 -1.0 -.9 .9 2.6 62Other corporate equities........................................... 10.8 12.9 4.9 4.7 7.6 15.0 .1 9.4 5.8 9.3 9.5 17.0 63Debt instruments........................................................ 212.9 284.1 388.5 478.1 476.8 417.1 465.9 490.2 461.9 490.5 369.1 469.6 64 U.S. government securities.................................... 98.2 88.1 84.3 95.2 89.9 126.8 100.0 90.4 74.5 105.2 110.6 142.8 65 State and local obligations...................................... 16.1 15.7 23.7 28.3 18.9 22.2 27.8 28.7 16.0 21.8 18.5 31.6 66 Corporate and foreign bonds................................ 36.4 37.2 36.1 31.6 32.9 35.6 34.2 29.1 34.1 31.5 46.1 25.4 67 Mortgages................................................................ 57.2 87.0 133.9 149.1 158.6 124.8 141.9 156.3 159.8 157.4 113.0 138.2 68 Consumer credit..................................................... 9.7 25.6 40.6 50.6 44.2 3.1 50.1 51.0 48.3 39.0 -4.3 8.9 69 Bank loans n.e.c..................................................... -12.2 7.0 29.8 58.4 52.5 50.7 54.9 61.8 48.6 56.2 15.1 81.7 70 Open market paper and RPs................................ -1.2 8.1 15.0 26.4 40.5 21.4 22.4 30.4 41.1 39.8 41.9 .9 71 Other loans............................................................ 8.7 15.3 25.2 38.6 39.5 32.6 34.6 42.5 39.4 39.5 28.4 40.0 Digitized for FRASER 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; half-yearly data are at seasonally adjusted annual rates 1978 1979 1980 Transaction category, or sector 1975 1976 1977 1978 1979 1980 HI H2 HI H2 HI H2 1 Total funds advanced in credit markets to nonfinancial sectors ......................................................................... 200.7 261.0 335.3 398.3 390.6 349.8 387.4 409.2 377.7 402.3 318.0 389.7 By public agencies and foreign 2 Total net advances............................................................ 44.6 54.3 85.1 109.7 80.1 95.8 102.8 116.6 47.6 112.5 101.5 90.4 3 U.S. government securities........................................... 22.5 26.8 40.2 43.9 2.0 22.3 43.7 44.0 -22.1 26.2 24.7 21.3 4 Residential mortgages................................................... 16.2 12.8 20.4 26.5 36.1 32.0 22.2 30.7 32.6 39.6 33.4 30.7 5 FHLB advances to savings and loans.......................... -4.0 -2.0 4.3 12.5 9.2 7.1 13.2 11.8 7.8 10.5 4.1 10.2 6 Other loans and securities............................................. 9.8 16.6 20.2 26.9 32.8 34.5 23.7 30.1 29.2 36.3 39.3 28.3 Total advanced, by sector 7 U.S. government................................................................ 15.1 8.9 11.8 20.4 22.5 26.0 19.4 21.4 23.8 21.3 29.5 21.6 8 Sponsored credit agencies................................................. 14.8 20.3 26.8 44.6 57.5 48.6 39.4 49.8 49.9 65.2 43.6 52.9 9 Monetary authorities........................................................ 8.5 9.8 7.1 7.0 7.7 4.5 13.4 .5 .9 14.5 14.6 -5.6 10 Foreign............................................................................... 6.1 15.2 39.4 37.7 -7.7 16.7 30.6 44.9 -27.0 11.7 13.8 21.5 11 Agency borrowing not included in line 1........................ 13.5 18.6 26.3 41.4 52.4 47.5 38.5 44.3 45.8 59.0 45.8 48.9 Private domestic funds advanced 12 Total net advances............................................................ 169.7 225.4 276.5 330.0 362.9 301.5 323.2 336.9 375.9 348.8 262.4 348.2 13 U.S. government securities........................................... 75.7 61.3 44.1 51.3 87.9 104.6 56.3 46.4 96.6 79.1 85.9 121.5 14 State and local obligations............................................. 16.1 15.7 23.7 28.3 18.9 22.2 27.8 28.7 16.0 21.8 18.5 31.6 15 Corporate and foreign bonds....................................... 32.8 30.5 22.5 22.5 25.6 25.5 24.1 20.9 26.9 24.3 32.6 19.5 16 Residential mortgages................................................... 23.2 52.6 83.3 88.2 81.8 58.1 87.1 89.5 85.1 78.5 45.2 71.0 17 Other mortgages and loans........................................... 17.9 63.3 107.3 152.2 157.9 98.2 141.1 163.3 159.1 155.6 84.2 114.7 18 Less: Federal Home Loan Bank advances................... -4.0 -2.0 4.3 12.5 9.2 7.1 13.2 11.8 7.8 10.5 4.1 10.2 Private financial intermediation 19 Credit market funds advanced by private financial institutions.................................................................. 122.5 190.1 257.0 296.9 292.5 265.6 301.7 292.0 307.5 277.4 230.7 293.0 20 Commercial banking...................................................... 29.4 59.6 87.6 128.7 121.1 103.5 132.5 125.0 124.6 117.6 57.0 142.4 21 Savings institutions........................................................ 53.5 70.8 82.0 75.9 56.3 57.6 75.8 75.9 57.7 54.9 32.1 81.1 22 Insurance and pension funds......................................... 40.6 49.9 67.9 73.5 70.4 76.4 76.9 70.2 75.4 65.5 86.4 68.0 23 Other finance.................................................................. -1.0 9.8 19.6 18.7 44.7 28.1 16.6 20.9 49.8 39.6 55.2 1.5 24 Sources of funds................................................................ 122.5 190.1 257.0 296.9 292.5 265.6 301.7 292.0 307.5 277.4 230.7 293.0 25 Private domestic deposits............................................. 92.0 124.6 141.2 142.5 136.7 163.9 138.3 146.7 121.7 151.6 148.3 183.0 26 Credit market borrowing............................................... -1.4 4.4 26.9 38.3 33.8 19.8 40.0 36.7 38.4 29.2 5.3 31.0 27 Other sources.................................................................. 32.0 61.0 89.0 116.0 122.0 81.9 123.5 108.6 147.3 96.6 77.2 79.0 28 Foreign funds.............................................................. -8.7 -4.6 1.2 6.3 26.3 -20.0 5.7 6.9 49.4 3.2 -18.1 -28.1 29 Treasury balances...................................................... -1.7 -.1 4.3 6.8 .4 -2.0 1.9 11.6 5.1 -4.3 -2.5 -2.6 30 Insurance and pension reserves................................ 29.7 34.5 49.4 62.7 49.0 58.5 66.2 59.2 53.9 44.0 62.4 55.6 31 Other, net.................................................................... 12.7 31.2 34.1 40.3 46.3 45.4 49.6 31.0 38.9 53.7 35.4 54.1 Private domestic nonfinancial investors 32 Direct lending in credit markets....................................... 45.8 39.7 46.3 71.5 104.2 55.7 61.4 81.6 106.8 100.5 36.9 86.1 33 U.S. government securities........................................... 24.1 16.1 23.0 33.2 57.8 30.7 32.1 34.4 64.1 51.5 15.5 48.8 34 State and local obligations............................................. 8.4 3.8 2.6 4.5 -2.5 -1.8 7.0 2.0 -2.3 -2.7 -1.6 7.9 35 Corporate and foreign bonds....................................... 8.4 5.8 -3.3 -1.4 11.1 5.4 -3.7 1.0 7.8 14.2 5.2 5.3 36 Commercial paper.......................................................... -1.3 1.9 9.5 16.3 10.7 -2.4 8.2 24.4 12.5 9.0 -5.7 -2.9 37 Other............................................................................... 6.2 12.0 14.5 18.8 27.1 23.9 17.8 19.8 24.7 28.5 23.6 27.0 38 Deposits and currency...................................................... 98.1 131.9 149.5 151.8 144.7 173.5 148.7 154.8 131.1 158.1 157.3 194.6 39 Security RPs................................................................... .2 2.3 2.2 7.5 6.6 4.7 9.8 5.1 18.5 -5.3 5.3 7.4 40 Money market fund shares........................................... 1.3 * .2 6.9 34.4 29.2 6.1 7.7 30.2 38.6 61.9 -3.4 41 Time and savings accounts........................................... 84.0 113.5 121.0 115.2 84.7 131.8 110.7 119.8 71.4 97.9 92.3 178.9 42 Large at commercial banks....................................... -15.8 -13.2 23.0 45.9 .4 12.7 33.9 57.9 -25.3 26.0 -12.0 72.6 43 Other at commercial banks....................................... 40.3 57.6 29.0 8.2 39.3 62.9 18.4 -1.9 41.3 37.3 60.8 37.7 44 At savings institutions............................................... 59.4 69.1 69.0 61.1 45.1 56.2 58.5 63.8 55.4 34.7 43.5 68.7 45 Money............................................................................. 12.6 16.1 26.1 22.2 18.9 7.8 22.1 22.3 10.9 26.8 -2.2 11.8 46 Demand deposits........................................................ 6.4 8.8 17.8 12.9 11.0 -1.8 11.6 14.2 1.6 20.3 -11.3 .2 47 Currency..................................................................... 6.2 7.3 8.3 9.3 7.9 9.6 10.5 8.1 9.3 6.5 9.0 11.6 48 Total of credit market instruments, deposits and currency ..................................................................... 143.9 171.6 195.8 223.3 248.9 229.1 210.1 236.4 237.9 258.7 194.2 280.8 49 Public support rate (in percent).................................... 22.2 20.8 25.4 27.5 20.5 27.4 26.5 28.5 12.6 28.0 31.9 23.2 50 Private financial intermediation (in percent)............... 72.2 84.3 93.0 90.0 80.6 88.1 93.4 86.7 81.8 79.5 87.9 84.2 51 Total foreign funds........................................................ -2.6 10.6 40.5 44.0 18.6 -3.3 36.3 51.8 22.4 14.9 -4.3 -6.6 Memo: Corporate equities not included above 52 Total net issues.................................................................. 10.7 11.9 4.0 3.7 6.6 17.0 -.4 7.9 4.8 8.4 10.4 19.6 53 Mutual fund shares........................................................ -.1 -1.0 -.9 -1.0 -1.0 -2.0 -.5 -1.5 -1.0 -.9 .9 2.6 54 Other equities................................................................ 10.8 12.9 4.9 4.7 7.6 15.0 .1 9.4 5.8 9.3 9.5 17.0 55 Acquisitions by financial institutions................................ 9.6 12.3 7.4 7.6 15.7 18.7 .4 14.7 12.5 18.9 10.5 25.1 56 Other net purchases.......................................................... 1.1 -.4 -3.4 -3.8 -9.1 -1.7 -.8 -6.8 -7.7 -10.5 -.1 -5.5 Notes by line number. 30. Excludes net investment of these reserves in corporate equities. 1. Line 2 of p. A42. 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 3, 47. Mainly an offset to line 9. 13, and 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 □ August 1981 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1980 1981 Measure 1978 1979 1980 Nov. Dec. Jan. Feb. Mar. Apr. Mayr Juner July 1 Industrial production1....................................... 146.1 152.5 147.1 149.4 151.0 151.7 152.2 152.2 152.2 153.0 152.9 153.4 Market groupings 2 Products, total.................................................... 144.8 150.0 146.8 148.7 149.9 150.3 149.8 150.7 151.5 152.4 152.0 152.1 3 Final, total...................................................... 135.9 147.2 145.4 147.5 148.3 148.3 147.9 149.2 150.3 151.5 151.4 151.7 4 Consumer goods......................................... 149.1 150.8 145.5 148.0 147.7 147.2 146.9 148.2 149.2 150.8 150.2 150.2 5 Equipment.................................................. 132.8 142.2 145.1 146.7 149.1 149.8 149.1 150.7 151.7 152.6 153.1 153.8 6 Intermediate.................................................... 154.1 160.5 151.9 153.5 156.1 157.7 156.9 156.3 156.0r 155.7 154.1 153.8 7 Materials.............................................................. 148.3 156.4 147.7 150.5 152.6 153.8 154.2 154.4 153.2 154.0 154.4 155.4 8 I M nd a u n s u t f r a y c g tu ro ri u n p g in .. g .. s .. .............................................. 146.7 153.6 146.6 149.1 150.6 151.1 151.0 151.7 152.3 153.0 152.4 152.7 Capacity utilization (percent)1,2 9 Manufacturing................................................. 84.4 85.7 79.0 79.4 79.9 80.0 79.8 79.9 80.0 80.2 79.7 79.6 10 Industrial materials industries........................ 85.6 87.4 79.8 80.4 81.3 81.7 81.7 81.7 80.9 81.1 81.2 81.5 11 Construction contracts (1972 = 100)3............... 174.1 185.6 161.8 210.0 193.0 185.0 177.0 183.0 172.0 160.0 170.0 n.a. 12 Nonagricultural employment, total4................. 131.8 136.5 137.6 138.1 138.2 138.4 138.7 138.8 139.0 139.1 139.2 139.8 13 Goods-producing, total.................................. 109.8 113.5 110.3 110.0 110.0 110.0 110.1 110.3 110.3 110.3 110.7 111.2 14 Manufacturing, total.................................... 105.4 108.2 104.4 103.8 103.7 103.7 103.8 103.8 104.6 105.0 105.0 105.6 15 Manufacturing, production-worker........... 103.0 105.3 99.4 98.4 98.3 98.2 98.2 98.4 99.2 99.6 99.6 100.3 16 Service-producing........................................... 143.8 149.1 152.6 153.5 153.7 154.0 154.4 154.5 154.7 155.0 154.8 155.4 17 Personal income, total....................................... 273.3 308.5 342.9 358.3 361.4 365.2 368.0 371.5 373.6 375.8 378.1 n.a. 18 Wages and salary disbursements................... 258.8 289.5 314.7 328.0 330.5 335.6 337.9 340.2 341.8r 343.4 344.7 n.a. 19 Manufacturing............................................. 223.1 248.6 261.5 273.1 275.8 280.1 281.3 382.9 286.1' 289.0 288.7 n.a. 20 Disposable personal income5............................ 267.0 299.6 332.5 346.4 349.2 352.5 355.3 358.7 360.6 362.3 364.2 n.a. 21 Retail sales6........................................................ 253.8 281.6 300.0 313.8 315.8 326.6 331.7 3.348 328. lc 326.7 3.322 3.364 Prices7 22 Consumer........................................................ 195.4 217.4 246.8 256.2 258.4 260.5 263.2 265.1 226.8 269.0 271.3 n.a. 23 Producer finished goods.................................. 194.6 216.1 246.9 256.2 257.2 260.4 262.4 265.3 267.7 268.9 269.9 271.3 1. The industrial production and capacity utilization series have been revised 6. Based on Bureau of Census data published in Survey of Current Business. back to January 1979. 7. Data without seasonal adjustment, as published in Monthly Labor Review. 2. Ratios of indexes of production to indexes of capacity. Based on data from Seasonally adjusted data for changes in the price indexes may be obtained from Federal Reserve, McGraw-Hill Economics Department, and Department of Com­ the Bureau of Labor Statistics, U.S. Department of Labor. merce. 3. Index of dollar value of total construction contracts, including residential, Note. Basic data (not index numbers) for series mentioned in notes 4, 5, and nonresidential, and heavy engineering, from McGraw-Hill Information Systems 6, and indexes for series mentioned in notes 3 and 7 may also be found in the Company, F. W. Dodge Division. Survey of Current Business. 4. Based on data in Employment and Earnings (U.S. Department of Labor). Figures for industrial production for the last two months are preliminary and Series covers employees only, excluding personnel in the Armed Forces. estimated, respectively. 5. Based on data in Survey of Current Business (U.S. Department of Commerce). 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1980 1981 1980 1981 1980 1981 Series Q3 Q4 Ql Q2r Q3 Q4 Ql Q2 Q3 Q4 Ql Q2r Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Manufacturing.................................................... 141.0 148.7 151.3 152.6 186.3 187.8 189.3 190.8 75.7 79.2 79.9 80.0 2 Primary processing............................................. 139.6 153.1 157.3 156.7 191.5 193.0 194.3 195.4 72.9 79.4 81.0 80.2 3 Advanced processing......................................... 141.8 146.4 148.2 150.4 183.5 185.0 186.6 188.3 77.3 79.1 79.4 79.8 4 Materials.............................................................. 139.2 149.8 154.1 153.9 185.8 187.2 188.7 189.8 74.9 80.0 81.7 81.1 5 Durable goods.................................................... 131.5 145.1 151.1 152.6 190.0 191.5 192.8 194.0 69.2 75.8 78.4 78.7 6 Metal materials .'............................................. 86.6 109.9 117.2 112.4 140.9 141.0 141.1 141.1 61.5 78.0 83.1 79.6 7 Nondurable goods............................................... 161.9 175.5 179.2 179.4 204.3 206.5 208.5 210.1 79.2 85.0 85.9 85.3 8 Textile, paper, and chemical.......................... 165.6 182.7 186.8 187.8 213.7 216.2 218.5 220.4 77.5 84.5 85.5 85.2 9 Textile.......................................................... 113.4 113.2 111.0 113.2 139.6 140.0 140.3 140.7 81.2 80.9 79.1 80.5 10 Paper............................................................ 142.9 148.9 151.2 151.5 157.4 158.8 160.0 161.0 90.7 93.8 94.5 94.1 11 Chemical...................................................... 197.9 226.9 234.7r 235.3 268.7 272.9 276.4 279.3 73.6 83.2 84.9 84.2 12 Energy materials................................................ 129.6 129.5 130.7'- 125.4 152.6 153.1 154.1 155.0 85.0 84.6 84.8r 80.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Labor Market A45 2.11 Continued Previous cycle1 Latest cycle2 1980 1980 1981 Series High Low High Low June Nov. Dec. Jan. Feb. Mar. Apr.' May' June' Capacity utilization rate (percent) 13Manufacturing.................................... 88.0 69.0 87.2 74.9 75.7 79.4 79.9 80.0 79.8 79.9 80.0 80.2 79.7 14 Primary processing........................ 93.8 68.2 90.1 70.9 72.7 79.6 80.8 81.2 81.2 80.6' 80.7 80.4 79.6 15 Advanced processing....................... 85.5 69.4 86.2 77.1 77.4 79.2 79.6 79.5 79.1 79.5r 79.6 80.1 79.7 16Materials............................................. 92.6 69.4 88.8 73.7 75.7 80.4 81.3 81.7 81.7 81.7 80.9 81.1 81.2 17 Durable goods................................ 91.5 63.6 88.4 68.0 70.8 76.5 77.3 78.0 78.2 78.9 78.5 79.0 78.5 18 Metal materials.......................... 98.3 68.6 96.0 58.4 67.0 81.4 81.0 82.0 83.2 84.1 80.1 80.5 78.3 19 Nondurable goods.......................... 94.5 67.2 90.9 76.8 78.7 84.3 86.3 86.7 86.1 85.0' 85.7 85.5 84.8 20 Textile, paper, and chemical__ 95.1 65.3 91.4 74.5 77.1 83.7 85.9 86.2 85.8 84.5 85.4 85.5 84.6 21 Textile...................................... 92.6 57.9 90.1 79.5 81.8 80.7 79.8 79.8 79.2 78.2 80.2 80.5 80.8 22 Paper ....................................... 99.4 72.4 97.6 88.1 91.6 94.1 94.2 93.7 94.8 94.9 94.7 93.7 93.8 23 Chemical.................................. 95.5 64.2 91.2 69.6 72.7 82.0 85.4 85.9 85.2 83.7r 84.5 84.7 83.4 24 Energy materials............................ 94.6 84.8 88.3 83.1 85.8 85.5 85.0 84.6 85.2 84.7' 79.8 80.1 83.0 1. Monthly high 1973; monthly low 1975. 2. Preliminary; monthly highs December 1978 through January 1980; monthly lows July 1980 through October 1980. 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1981 Category 1978 1979 1980 Jan. Feb. Mar. Apr. May June July Household Survey Data 1 Noninstitutional population1...................... 161,058 163,620 166,246 167,585 167,747 167,902 168,071 168,272 168,480 168,685 2 Labor force (including Armed Forces)1 ... 102,537 104,996 106,821 107,668 107,802 108,305 108,851 109,533 108,307 108,603 3 Civilian labor force.................................. 100,420 102,908 104,719 105,543 105,681 106,177 106,722 107,406 106,176 106,464 Employment 4 Nonagricultural industries2................. 91,031 93,648 93,960 94,294 94,646 95,136 95,513 95,882 95,127 95,704 5 Agriculture........................................... 3,342 3,297 3,310 3,403 3,281 3,276 3,463 3,353 3,265 3,258 Unemployment 6 Number................................................. 6,047 5,963 7,448 7,847 7,754 7,764 7,746 8,171 7,784 7,502 7 Rate (percent of civilian labor force) . 6.0 5.8 7.1 7.4 7.3 7.3 7.3 7.6 7.3 7.0 8 Not in labor force....................................... 58,521 58,623 59,425 59,917 59,946 59,598 59,219 58,739 60,173 60,082 Establishment Survey Data 9 Nonagricultural payroll employment3........ 86,697 89,823 90,564 91,091 91,258 91,347 91,458 91,564' 91,583' 91,966 1 1 1 0 M M i a n n i u n f g a . c .. t .. u .. r . i . n .. g .. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,5 8 0 5 5 1 21,0 9 4 5 0 8 201,,300200 20 1 , , 1 08 7 3 4 20 1 , , 1 09 7 1 7 20 1 , , 1 0 7 9 1 8 20,3 9 3 5 2 0 20,4 9 1 5 4 7 ' ' 20 1 , , 4 1 2 1 0 2 ' ' 20 1 , ,1 5 4 2 1 8 12 Contract construction.................................. 4,229 4,463 4,399 4,390 4,389 4,416 4,418 4,334' 4,274' 4,253 13 Transportation and public utilities............. 4,923 5,136 5,143 5,124 5,135 5,139 5,161 5,148' 5,145' 5,151 14 Trade............................................................ 19,542 20,192 20,386 20,529 20,600 20,635 20,636 20,714 20,703' 20,798 15 Finance........................................................ 4,724 4,975 5,168 5,268 5,283 5,293 5,316 5,326' 5,330' 5,344 16 Service.......................................................... 16,252 17,112 17,901 18,300 18,343 18,371 18,475 18,540' 18,568' 18,653 17 Government................................................. 15,672 15,947 16,249 16,223 16,240 16,204 16,170 16,131' 16,031' 16,098 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 work­ figures. Based on data from Employment and Earnings (U.S. Department of La­ ers, ana 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 □ August 1981 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. 1967 1980 1980 1981 Grouping pro­ p ti o o r n ­ age July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.r May June* July* Index (1967 = 100) Major Market 1 Total index..................... 100.00 147.1 140.4 141.8 144.1 146.9 149.4 151.0 151.7 151.5 152.2 152.2 153.0 152.9 153.4 2 Products.......................... 60.71 146.8 142.8 143.8 145.3 147.2 148.7 149.9 150.3 149.8 150.7 151.5 152.4 152.0 152.1 3 Final products 47.82 145.4 142.4 142.8 143.9 145.8 147.5 148.3 148.3 147.9 149.2 150.3 151.5 151.4 151.7 4 Consumer 27.68 145.5 142.0 142.7 144.3 146.6 148.0 147.7 147.2 146.9 148.2 149.2 150.8 150.2 150.2 5 Equipment 20.14 145.1 142.9 142.9 143.2 144.8 146.7 149.1 149.8 149.1 150.7 151.7 152.6 153.1 153.8 6 Intermediate products............... 12.89 151.9 144.5 147.6 150.6 152.4 153.5 156.1 157.7 156.9 156.3 156.0 155.7 154.1 153.8 7 Materials....................................... 39.29 147.7 136.5 138.6 142.4 146.4 150.5 152.6 153.8 154.2 154.4 153.2 154.0 154.4 155.4 Consumer goods 8 Durable consumer goods............. 7.89 136.5 128.3 128.6 132.7 139.6 142.9 141.3 138.8 138.9 143.3 144.4 147.6 147.6 146.6 9 Automotive products............... 2.83 132.7 129.2 121.5 130.6 141.8 145.3 139.1 127.1 129.0 139.4 143.8 152.1 153.0 147.0 10 Autos and utility vehicles.... 2.03 109.9 106.4 94.1 105.5 120.2 124.3 115.9 99.8 103.7 116.7 120.1 129.9 131.4 122.9 11 Autos.................................. 1.90 103.4 105.2 91.3 98.0 110.7 114.3 105.3 90.0 96.0 108.3 113.2 120.8 122.2 177.4 12 Auto parts and allied goods.. 80 190.4 183.7 186.9 191.1 194.2 196.8 198.6 198.0 196.6 196.9 203.9 208.5 208.0 208.5 13 Home goods.............................. 5.06 138.7 132.0 127.7 132.6 134.0 138.3 141.5 142.6 145.4 145.5 144.7 145.1 144.5 146.4 14 Appliances, A/C, and TV ... 1.40 117.1 102.3 114.2 116.3 123.5 128.4 126.8 131.2 124.2 127.7 120.8 122.1 118.2 123.2 15 Appliances and TV........... 1.33 119.5 103.4 114.2 117.6 125.6 131.0 129.2 132.7 126.7 129.7 122.3 123.4 119.8 16 Carpeting and furniture........ 1.07 155.0 136.1 141.1 146.1 150.2 154.9 156.3 156.8 159.9 159.3 164.1 164.6 166.9 17 Miscellaneous home goods... 2.59 143.6 138.1 139.1 138.6 141.5 143.0 145.4 148.4 149.0 149.4 149.7 149.5 149.5 150.7 18 Nondurable consumer goods........ 19.79 149.1 147.4 148.3 148.9 149.4 150.1 150.2 150.5 150.1 150.1 151.1 152.0 151.2 151.6 19 Clothing..................................... 4.29 126.8 122.5 123.6 122.1 125.1 127.3 123.7 122.3 119.9 120.0 120.3 122.2 20 Consumer staples...................... 15.50 155.3 154.3 155.1 156.3 156.1 156.4 157.5 158.3 158.5 158.5 159.6 160.3 159.5 159.5 21 Consumer foods and tobacco 8.33 147.0 146.4 146.0 147.0 147.7 148.0 148.9 148.7 149.3 149.6 150.6 150.9 149.3 22 Nonfood staples..................... 7.17 165.0 163.6 165.7 167.1 165.9 166.2 167.6 169.5 169.1 168.8 170.1 171.2 171.4 171.1 23 Consumer chemical products..................... 2.63 208.7 204.3 209.3 213.0 210.2 210.0 212.5 214.7 217.6 220.0 223.4 224.0 222.9 24 Consumer paper products . 1.92 122.9 121.5 122.0 122.3 124.8 127.3 127.0 127.6 129.5 129.1 126.5 127.6 127.5 25 Consumer energy products 2.62 151.9 153.5 153.9 154.0 151.5 150.8 152.3 154.8 149.4 146.5 148.7 150.2 151.8 26 Residential utilities....... 1.45 171.2 176.5 178.6 178.3 175.0 171.8 171.2 174.4 167.0 166.5 170.0 174.6 Equipment 27 Business......................................... 12.63 173.3 170.1 170.3 170.5 172.3 174.5 177.8 178.9 178.3 180.5 182.0 183.4 184.2 185.0 28 Industrial................................... 6.77 157.0 154.8 154.5 154.2 154.4 157.1 160.7 163.8 165.2 167.3 168.5 169.6 170.6 171.7 29 Building and mining............. 1.44 241.3 244.4 243.6 243.4 244.3 250.1 255.7 265.9 272.2 279.6 285.2 287.3 289.4 290.8 30 Manufacturing...................... 3.85 128.5 126.0 124.4 123.9 123.9 126.4 130.6 131.1 131.0 132.0 131.9 132.9 133.8 134.7 31 Power..................................... 1.47 149.0 142.0 145.9 146.1 146.1 146.0 146.1 149.1 149.9 149.3 149.9 150.1 150.4 151.4 32 Commercial transit, farm......... 5.86 192.1 187.8 188.4 189.4 192.8 194.7 197.6 196.3 193.4 195.9 197.6 199.3 199.9 200.4 33 Commercial............................ 3.26 237.5 229.0 233.6 237.2 242.0 244.0 248.3 249.6 250.9 253.4 254.4 257.9 259.3 260.9 34 Transit................................... 1.93 139.4 140.9 138.4 133.8 135.0 136.6 137.9 131.7 122.9 126.6 129.4 129.7 129.2 128.0 35 Farm....................................... 67 123.2 122.5 112.7 116.8 120.2 121.9 123.1 122.9 116.4 115.3 117.9 114.4 114.4 36 Defense and space........................ 7.51 97.8 97.2 96.9 97.4 98.5 99.8 100.7 101.0 100.2 100.5 100.8 100.8 100.9 101.4 Intermediate products 37 Construction supplies................... 6.42 140.7 128.6 133.1 137.4 140.5 142.8 144.6 147.4 147.3 147.6 146.9 145.9 143.3 142.0 38 Business supplies.......................... 6.47 162.9 160.4 161.9 163.6 164.3 164.2 167.5 168.0 166.5 164.8 165.0 165.5 164.8 39 Commercial energy products... 1.14 173.6 172.1 173.7 175.2 174.6 174.0 179.4 178.3 175.0 174.4 175.1 177.3 176.9 Materials 40 Durable goods materials............... 20.35 143.1 129.0 131.3 134.2 140.4 146.6 148.4 150.2 150.7 152.4 152.1 153.2 152.5 152.9 41 Durable consumer parts........... 4.58 109.0 93.9 98.1 104.2 110.8 115.5 116.3 116.2 115.9 119.9 121.6 123.0 124.1 123.5 42 Equipment parts...................... 5.44 187.3 177.6 176.3 176.0 178.5 184.0 185.8 189.2 188.9 191.5 192.3 193.8 193.0 193.8 43 Durable materials n.e.c............. 10.34 135.0 118.9 122.4 125.4 133.4 140.6 142.9 144.6 146.0 146.2 144.5 145.2 143.8 144.3 44 Basic metal materials........... 5.57 104.6 84.7 89.4 91.7 102.0 114.4 115.0 116.3 118.1 118.1 113.8 114.0 111.7 45 Nondurable goods materials....... 10.47 170.7 156.2 159.8 169.7 173.7 174.1 178.8 180.2 179.6 177.7 179.6 179.7 178.8 179.7 46 Textile, paper, and chemical materials........................ 7.62 177.0 158.5 163.2 175.1 180.5 181.0 186.5 187.7 187.4 185.4 187.8 188.4 187.1 188.0 47 Textile materials.................. 1.85 116.0 114.4 111.0 114.7 114.9 113.0 111.8 111.9 111.1 109.9 112.7 113.3 113.7 48 Paper materials.................... 1.62 145.1 138.4 142.0 148.2 147.3 149.5 150.0 149.6 151.7 152.2 152.2 150.9 151.3 49 Chemical materials............... 4.15 216.7 186.1 194.9 212.6 222.9 223.8 234.1 236.4 235.5 232.1 235.3 236.7 233.9 50 Containers, nondurable........... 1.70 165.1 159.0 158.8 167.2 168.6 166.6 169.7 172.1 171.0 168.8 170.1 167.5 168.4 51 Nondurable materials n.e.c. ... 1.14 137.3 136.6 137.9 137.2 135.7 139.1 141.1 142.0 140.4 139.4 138.8 139.6 138.9 52 Energy materials.......................... 8.48 130.0 130.4 130.0 128.4 127.2 130.9 130.5 130.2 131.3 130.7 123.3 124.1 128.9 131.6 53 Primary energy.......................... 4.65 115.1 115.6 114.0 114.3 113.7 114.5 115.0 114.4 117.5 116.2 104.1 104.6 112.6 54 Converted fuel materials......... 3.82 148.2 148.4 149.4 145.4 143.6 150.9 149.4 149.4 148.0 148.3 146.8 147.8 148.8 Supplementary groups 55 Home goods and clothing........... 9.35 133.2 125.3 128.5 128.5 132.2 135.0 133.9 134.8 133.2 133.8 133.5 133.6 133.9 135.6 56 Energy, total................................. 12.23 138.8 139.2 139.2 138.2 136.8 139.2 139.7 139.9 139.2 138.1 133.6 134.6 138.3 139.9 57 Products..................................... 3.76 158.5 159.1 159.9 160.5 158.5 157.9 160.5 161.9 157.1 155.0 156.7 158.4 159.4 58 Materials................................... 8.48 130.0 130.4 130.0 128.4 127.2 130.9 130.5 130.2 131.3 130.7 123.3 124.1 128.9 131.6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A47 2.13 Continued 1967 1980 1981 Grouping SIC p pr o o r­ ­ 1 a 9 v 8 g 0 . tion July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.r May Junep Julye Index (1967 == 100) Major Industry 12.05 150.4 150.1 150.5 150.5 150.2 152.8 154.0 155.2 155.2 155.8 151.7 153.3 156.7 158.4 6.36 132.9 130.6 179.6 130.5 132.1 136.0 139.3 141.1 143.3 143.5 135.9 135.9 141.7 145.6 5.69 169.9 171.8 173.8 172.7 170.4 171.5 170.3 171.0 168.5 169.4 169.3 172.6 173.4 172.8 3.88 189.7 192.4 195.4 193.9 190.3 191.5 190.3 191.1 187.4 188.7 188.5 193.4 194.4 193.3 87.95 146.6 139.1 140.6 143.4 146.4 149.1 150.6 151.1 151.0 151.7 152.3 153.0 152.4 152.7 35.97 161.1 154.7 156.9 160.3 161.8 163.3 165.0 165.2 166.1 165.5 166.1 166.3 165.8 166.5 51.98 136.6 128.3 P9.4 131.7 135.8 139.3 140.6 141.4 140.7 142.2 142.7 143.8 143.2 143.2 Mining 8 Metal........................................ 10 .51 109.1 83.1 71.2 73.1 90.8 107.2 122.2 126.3 133.7 131.1 123.5 122.7 120.9 9 Coal...................................... 11.12 .69 146.7 149.8 154.9 148.9 145.7 151.6 155.3 150.3 158.9 151.1 75.8 76.9 122.8 161.8 10 Oil and gas extraction........... 13 4.40 133.8 134.3 133.6 134.7 135.4 137.4 139.1 141.5 142.7 144.8 147.0 147.2 148.4 147.9 11 Stone and earth minerals....... 14 .75 131.7 123.7 123.5 128.2 129.0 133.0 137.8 140.0 138.9 137.4 134.8 132.8 133.7 Nondurable manufactures 12 Foods........................................ 20 8.75 149.2 148.9 148.3 148.6 149.4 150.5 150.7 150.0 151.5 152.1 152.7 153.0 152.0 13 Tobacco products................... 21 .67 119.8 119.6 117.4 119.1 123.1 125.1 118.8 122.9 123.1 115.8 122.2 122.3 14 Textile mill products............... 22 2.68 136.8 132.5 n?,6 133.0 133.8 135.0 133.9 133.8 135.5 134.0 136.0 136.4 136.0 15 Apparel products................... 23 3.31 128.6 121.5 123.8 126.7 127.5 128.0 125.1 125.9 124.0 123.6 122.1 122.2 16 Paper and products................. 26 3.21 151.0 143.6 147.1 152.3 153.0 154.4 156.8 157.2 156.7 156.9 157.3 155.4 153.4 154.6 17 Printing and publishing.......... 27 4.72 139.6 138.6 140.3 140.3 141.5 142.7 144.9 145.5 145.8 143.6 141.6 141.9 142.4 142.9 18 Chemicals and products......... 28 7.74 206.7 190.3 197.8 206.8 209.1 212.0 218.8 219.2 220.9 219.5 220.9 221.6 220.3 19 Petroleum products................. 29 1.79 134.9 130.5 126.7 130.5 130.1 131.2 137.5 137.3 134.3 131.4 130.4 128.8 129.0 128.3 20 Rubber ana plastic products.. 30 2.24 255.8 242.5 245.9 253.1 259.2 259.6 259.2 258.2 264.0 267.9 272.9 276.5 280.2 21 Leather and products............. 31 .86 70.1 67.8 67.7 67.2 70.2 71.2 67.8 68.9 69.4 69.1 68.8 68.8 67.5 Durable manufactures 22 Ordnance, private and 79.5 government..................... 19.91 3.64 77.9 77.1 77.2 77.1 79.1 79.6 79.5 78.9 78.6 78.3 78.4 78.8 79.0 23 Lumoer and products............. 24 1.64 119.3 112.8 121.7 122.6 122.2 124.9 122.0 126.3 126.3 125.4 126.2 126.8 123.2 24 Furniture and fixtures........... 25 1.37 150.0 138.6 141.1 144.8 147.2 147.2 149.0 150.5 153.0 153.0 157.1 158.4 159.8 25 Clay, glass, stone products ... 32 2.74 146.5 134.2 135.7 141.4 145.2 147.8 151.4 154.9 154.8 152.4 152.4 150.4 147.0 26 Primary metals......................... 33 6.57 101.6 81.7 86.0 90.1 100.6 113.4 112.1 113.9 114.2 114.3 111.8 111.5 107.6 108.4 27 Iron and steel....................... 331.2 4.21 91.7 68.1 75.3 79.8 93.3 107.4 103.5 108.0 107.8 107.3 105.1 105.7 99 3 28 Fabricated metal products---- 34 5.93 135.0 123.8 125.8 129.0 132.8 134.1 137.4 137.6 139.1 141.3 141.2 140.9 141.0 141.5 29 Nonelectrical machinery....... 35 9.15 162.8 158.5 158.8 159.1 161.1 163.4 167.5 168.9 169.1 170.7 172.0 174.2 175.0 176.0 30 Electrical machinery............... 36 8.05 172.7 165.0 166.7 167.5 170.0 173.0 174.9 177.9 174.6 177.1 178.4 180.5 179.3 180.7 31 Transportation equipment---- 37 9.27 116.8 110.7 108.3 112.9 118.8 121.7 120.6 117.3 114.9 119.4 120.2 123.1 123.3 120.7 32 Motor vehicles and parts... 371 4.50 118.8 107.9 104.4 113.4 124.2 129.0 126.3 119.2 117.5 127.4 129.7 136.0 137.4 131.8 33 Aerospace and miscella­ 110.2 neous transportation equipment..................... 372-9 4.77 114.9 113.4 111.9 112.3 113.6 114.8 115.2 115.5 112.5 111.9 111.2 110.9 110.0 34 Instruments............................ 38 2.11 171.0 167.5 167.6 167.4 169.6 169.9 172.1 174.0 171.3 169.9 170.0 170.4 171.2 172.2 35 Miscellaneous manufactures .. 39 1.51 147.8 144.7 144.2 142.8 145.0 147.5 149.5 151.8 153.6 154.9 157.3 157.0 157.0 158.8 Gross value (billions of 1972 dollars, annual rates) Major Market 36 Products, total ....................... 507.41 602.1 586.7 585.9 593.3 604.7 610.9 615.5 614.0 612.0 617.8 616.7 621.8 618.8 616.9 ....................................... 390.91 465.4 456.9 453.0 458.0 374 6F7.i7nal473.0 475.5 472.6 470.4 476.7 477.1 482.0 480.6 479.3 38 Consumer goods................. 277.51 313.5 307.7 305.1 309.0 316.6 320.0 320.3 317.2 316.5 320.4 321.0 324.8 322.8 322.7 39 Equipment.......................... 113.41 151.9 149.2 147.9 149.0 151.1 153.0 155.2 155.4 154.0 156.3 156.1 157.1 157 8 156.7 ............................ 116.61 136.7 129.9 132.9 135.3 401 3I7n.1term1e3d7i.a9te 140.0 141.5 141.5 141.2 139.7 139.9 138.2 137.6 1. 1972 dollar value. Note. Published groupings include some series and subtotals not shown sepa­ rately. For description and historical data, see Industrial Production—1976 Revision (Board of Governors of the Federal Reserve System: Washington, D.C.), Decem­ ber 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics □ August 1981 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1980 1981 Item 1978 1979 1980 Nov. Dec. Jan. Feb. Mar. Apr.' May' June Private residential real estate activity (thousands of units) New Units 2 1 Per 1 m -fa it m s i a l u y. t . h .. o .. r .. i . z .. e .. d .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 , ,1 80 8 1 3 1,5 9 5 81 2 1,1 7 9 1 1 0 1, 8 36 0 6 9 1,2 75 4 3 9 1,2 7 1 15 4 1,1 6 6 7 5 7 1,1 6 5 7 3 8 1,1 6 8 8 6 9 1,1 6 6 5 7 4 9 56 7 7 6 3 2-or-mdre-family.................................. 618 571 481 557 496 499 488 475 497 513 409 4 Started...................................................... 2,020 1,745 1,292 1,550 1,535 1,660 1,215 1,297 1,332 1,159 1,032 5 6 2 1 - - o fa r m -m il o y r .. e . - .. f . a .. m ... i . l . y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1, 5 43 8 3 7 1,1 55 9 1 4 4 8 4 5 0 2 1, 5 0 3 1 1 9 9 56 7 1 4 9 6 9 6 3 7 7 4 9 2 1 4 4 8 5 3 9 8 4 8 3 9 5 7 7 39 6 2 7 6 3 7 6 1 1 7 8 Un 1 d - e fa r m co il n y s .. t . r .. u .. c .. t . i . o .. n .. , . . e .. n .. d .. . o ... f . . p .. e .. r .. i . o .. d .. 1 .. , .. , ..... 1,3 7 1 65 0 1,1 6 4 3 0 9 8 51 9 5 6 9 5 0 2 5 9 9 5 1 3 5 5 9 5 4 4 0 4 9 54 3 1 8 5 9 3 2 3 7' 9 5 1 2 5 7 9 5 0 1 1 1 n n . . a a . . 9 2-or-more-family.................................. 546 501 382 376 381 397 397 394' 387 390 n.a. 1 1 1 1 2 0 Co 2 1 m - - o fa p r m - l m e i t l o e y r d .. e . . . - . . . f . . a . . . . m . . . . . . i . . . l . . y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 , , 8 3 4 6 6 9 9 8 8 1 1 , , 8 2 5 5 8 6 5 6 9 1,5 9 5 5 4 0 5 7 2 1,2 8 45 7 1 5 4 9 1,3 4 8 7 7 95 3 8 1,2 9 3 0 5 4 3 2 9 1, 4 3 9 8 6 2 9 5 4 1, 4 8 3 8 8 6 2 0 2 ' ' 1,5 9 5 1 5 61 5 6 1,2 8 3 4 5 9 2 0 2 n n n . . . a a a . . . 13 Mobile homes shipped............................ 276 277 222 239 261 233 256 255 265 255 n.a. Merchant builder activity in 1-family units 14 Number sold........................................... 818 709 530 560 514 523 500 507 457 493 408 15 Number for sale, end of period1........... 419 402 340 337 336 329 334 325 327 324 312 Price (thousands of dollars)2 Median 16 Units sold............................................. 55.8 62.7 64.9 67.1 67.2 67.9 65.8 67.1 68.4 71.8 71.6 Average 17 Units sold............................................. 62.7 71.9 76.6 82.2 81.5 80.2 80.1 81.2 82.5 84.3 88.3 Existing Units (1-family) 18 Number sold........................................... 3,863 3,701 2,881 2,960 2,910 2,580 2,560 2,490 2,610 2,500 2,650 Price of units sold (thous. of dollars)2 19 Median.................................................... 48.7 55.5 62.1 64.3 63.0 64.5 64.1 64.4 65.3 66.3 67.9 20 Average.................................................. 55.1 64.0 72.7 74.9 74.0 76.1 75.7 76.2 77.3 78.6 80.3 Value of new construction3 (millions of dollars) Construction 21 Total put in place.................................... 205,559 230,781 230,273 234,275 245,433 259,049 254,458 250,274 248,904 239,742 236,167 2 2 3 2 Pr R iv e a s t i e d .. e .. n .. t . i . a ... l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 5 3 9 , , 4 6 2 6 3 4 1 9 8 9 1 , , 0 6 3 9 2 0 1 8 7 7 4 , ,8 26 96 0 1 9 8 5 0 , , 6 8 1 8 7 2 1 9 8 8 7 , , 8 87 9 5 8 119030,,867876 1 9 9 9 3 , ,1 6 5 8 5 4 1 9 8 6 9, , 6 2 4 6 1 6 1 9 9 8 2 , ,4 2 6 8 5 7 1 9 8 4 8 , ,2 2 5 8 3 2 1 9 8 1 4 , , 0 9 7 0 4 8 24 Nonresidential, total............................ 66,241 82,658 87,636 85,265 88,977 93,191 93,471 93,375 94,178 93,971 93,834 Buildings 25 Industrial..................................... 10,993 14,953 13,839 12,916 14,293 15,339 15,094 15,380 15,505 15,503 15,755 26 Commercial.................................. 25,137r 34,381' 43,260' 43,408' 45,294' 48,459' 49,359' 49,448' 33,394 32,391 30,709 2 2 7 8 Pu O bl t i h c e u r t . i . l . i . t .. i . e . s .. . a .. n .. d .. . o ... t . h .. e .. r .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 6 3 , , 7 3 3 7 9 2 ' 2 7 5 , , 4 8 2 9 7 7' 2 8 1 , , 6 8 5 8 4 3' 1 8 9 , , 9 9 6 8 1 0' 2 9 0 , , 2 1 6 2 8 2' 1 9 9 , , 8 5 9 0 1 2' 1 9 9 , , 9 0 3 8 8 0' 1 9 8 , , 5 9 8 5 8 9' 3 9 6 , ,0 1 8 9 3 6 3 8 7 , , 9 1 0 7 3 4 3 9 7 , ,4 8 9 7 1 9 29 Public...................................................... 45,896 49,088' 55,371' 53,393 57,558 65,173 61,302 60,632' 56,439 51,489 51,260 30 Military................................................. 1,501 1,648 1,880 1,770 1,743 1,810 2,173 1,685 1,915 1,752 1,837 31 Highway............................................... 10,708 11,998 13,784 12,786 13,127 19,882 17,812 15,515 14,144 n.a. n.a. 32 Conservation and development......... 4,457 4,586 5,089 5,177 5,383 6,242 6,197 6,018 5,688 n.a. n.a. 33 Other.................................................... 29,230 30,856' 34,618' 33,660 37,305 37,239 35,120 37,414' 34,692 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 comparable and seasonally adjusted by the Census Bureau, and (b) sales and prices of existing with data in prior periods due to changes by the Bureau of the Census in its units, which are published by the National Association of Realtors. All back ana estimating techniques. For a description of these changes see Construction Reports current figures are available from originating agency. Permit authorizations are (C-30-76-5), issued by the Bureau in July 1976. those reported to the Census Bureau from 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 Index level June Item 1980 1981 1981 1981 1980 1981 (1967 June June = 100)1 Sept. Dec. Mar. June Feb. Mar. Apr. May June Consumer Prices2 1 All items....................................................... 14.3 9.6 7.8 13.2 9.6 7.4 1.0 .6 .4 .7 .7 271.3 2 Commodities............................................... 11.7 8.8 13.2 11.0 8.9 2.1 1.1 .5 .0 .2 .4 253.2 3 Food ........................................................ 7.1 8.6 19.7 13.1 2.1 -.1 .3 .4 .0 -.2 .2 273.6 4 Commodities less food............................ 13.7 8.9 10.6 9.9 12.3 3.1 1.4 .5 .0 .4 .4 241.1 5 Durable................................................. 9.2 8.6 15.2 11.8 -.7 9.0 -.3 -.1 .3 .9 1.0 226.6 6 Nondurable......................................... 19.6 9.2 5.0 6.2 29.8 -2.0 3.2 1.3 -.2 -.2 -.2 258.0 7 Services........................................................ 18.1 10.7 .7 16.8 10.3 15.1 .8 .8 1.0 1.4 1.2 303.5 8 Rent.......................................................... 9.4 8.2 8.6 9.6 7.0 7.7 .5 .5 .6 .8 .4 206.8 9 Services less rent...................................... 19.5 11.0 -.3 17.8 10.9 16.1 .9 .8 1.0 1.5 1.3 321.9 Other groupings 10 All items less food...................................... 15.9 9.8 5.7 13.2 11.7 9.0 1.1 .7 .5 .9 .8 269.5 11 All items less food and energy................... 13.6 9.4 5.8 14.4 5.8 11.8 .4 .4 .6 1.1 1.0 255.6 12 Homeownership......................................... 23.8 9.4 -3.5 23.1 3.1 16.9 .0 .3 .7 1.7 1.5 350.4 Producer Prices 13 Finished goods............................................. 13.8 10.2 13.5 8.3 12.0 7.1 .8 .9 .8 .4 .6 269.9 14 Consumer................................................. 14.8 10.0 14.5 7.4 12.1 6.3 .7 1.0 .8 .2 .5 271.5 15 Foods..................................................... 4.3 8.6 31.0 4.3 .3 1.8 -.6 .6 .0 .0 .5 253.1 16 Excluding foods.................................... 20.3 10.4 7.5 8.9 17.4 7.7 1.3 1.2 1.1 .3 .5 277.0 17 Capital equipment.................................... 10.3 11.0 9.9 11.8 11.5 10.6 .9 .6 .9 .9 .7 264.0 18 Intermediate materials3.............................. 16.4 10.5 7.8 12.9 13.2 8.4 .6 1.1 1.1 .6 .3 311.0 Crude materials 19 Nonfood................................................... 16.5 25.9 32.3 27.5 35.7 9.7 7.0 -1.1 1.4 1.5 -.5 484.2 20 Food ........................................................ -2.4 8.7 73.9 -4.0 -23.1 8.5 -3.3 -2.0 1.5 -2.2 2.8 264.2 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 □ August 1981 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1980 1981 Account 1978 1979 1980 Q2 Q3 Q4 01 02 Gross National Product 1 Total................................................................................................... 2,156.1 2,413.9 2,626.1 2,564.8 2,637.3 2,730.6 2,853.0 2,881.0 By source 2 Personal consumption expenditures.................................................. 1,348.7 1,510.9 1,672.8 1,626.8 1,682.2 1,751.0 1,810.0 1,830.3 3 Durable goods................................................................................. 199.3 212.3 211.9 194.4 208.8 223.3 238.3 226.7 4 Nondurable goods........................................................................... 529.8 602.2 675.7 664.0 674.2 703.5 726.0 732.7 5 Services............................................................................................ 619.6 696.3 785.2 768.4 799.2 824.2 845.8 870.9 6 Gross private domestic investment................................................... 375.3 415.8 395.3 390.9 377.1 397.7 437.1 453.8 7 Fixed investment............................................................................. 353.2 398.3 401.2 383.5 393.2 415.1 432.7 433.4 8 Nonresidential............................................................................. 242.0 279.7 296.0 289.8 294.0 302.1 315.9 322.0 9 Structures................................................................................. 78.7 96.3 108.8 108.4 107.3 111.5 117.2 120.9 10 Producers’ durable equipment............................................... 163.3 183.4 187.1 181.4 186.8 190.7 198.7 201.0 11 Residential structures.................................................................. 111.2 118.6 105.3 93.6 99.2 113.0 116.7 111.4 12 Nonfarm................................................................................... 106.9 113.9 100.3 88.9 94.5 107.6 111.4 106.1 13 Change in business inventories...................................................... 22.2 17.5 -5.9 7.4 -16.0 -17.4 4.5 10.4 14 Nonfarm...................................................................................... 21.8 13.4 -4.7 6.1 -12.3 -14.0 6.8 19.5 15 Net exports of goods and services.................................................... -0.6 13.4 23.3 17.1 44.5 23.3 29.2 19.4 16 Exports............................................................................................ 219.8 281.3 339.8 333.3 342.4 346.1 367.4 366.2 17 Imports............................................................................................ 220.4 267.9 316.5 316.2 297.9 322.7 338.2 346.9 18 Government purchases of goods and services.................................. 432.6 473.8 534.7 530.0 533.5 558.6 576.5 577.6 19 Federal............................................................................................ 153.4 167.9 198.9 198.7 194.9 212.0 221.6 219.5 20 State and local................................................................................. 279.2 305.9 335.8 331.3 338.6 346.6 354.9 358.1 By major type of product 21 Final sales, total................................................................................. 2,133.9 2,396.4 2,632.0 2,557.4 2,653.4 2,748.0 2,848.5 2,860.6 22 Goods.............................................................................................. 946.6 1,055.9 1,130.4 1,106.4 1,129.4 1,169.0 1,247.5 1,247.7 23 Durable........................................................................................ 409.8 451.2 458.6 444.6 456.5 476.7 501.4 513.1 24 Nondurable................................................................................. 536.8 604.7 671.9 661.8 672.9 692.2 746.1 734.6 25 Services............................................................................................ 976.3 1,097.2 1,229.6 1,205.6 1,249.0 1,285.3 1,317.1 1,349.8 26 Structures ........................................................................................ 233.2 260.8 266.0 252.8 258.9 276.4 288.4 283.6 27 Change in business inventories.......................................................... 22.2 17.5 -5.9 7.4 -16.0 -17.4 4.5 20.4 28 Durable goods................................................................................ 17.8 11.5 -4.0 3.3 -8.4 .7 -4.2 19.5 29 Nondurable goods........................................................................... 4.4 6.0 -1.8 4.1 -7.7 -18.1 8.6 .9 30 Memo: Total GNP in 1972 dollars.................................................... 1,436.9 1,483.0 1,480.7 1,463.3 1,471.9 1,485.6 l,516.4r 1,509.1 National Income 31 Total................................................................................................... 1,745.4 1,963.3 2,121.4 2,070.0 2,122.4 2,204.8 2,291.1 n.a. 32 Compensation of employees.............................................................. 1,299.7 1,460.9 1,596.5 1,569.0 1,597.4 1,661.8 1,722.4 1,751.0 33 Wages and salaries......................................................................... 1,105.4 1,235.9 1,343.6 1,320.4 1,342.3 1,397.3 1,442.9 1,465.9 34 Government and government enterprises.................................. 219.6 235.9 253.6 250.5 253.9 263.3 267.1 270.3 35 Other............................................................................................ 885.7 1,000.0 1,090.0 1,069.9 1,088.4 1,134.0 1,175.7 1,195.6 36 Supplement to wages and salaries................................................. 194.3 225.0 252.9 248.6 255.0 264.5 279.5 285.0 37 Employer contributions for social insurance............................ 92.1 106.4 115.8 113.6 116.0 121.0 131.5 133.2 38 Other labor income................................................................... 102.2 118.6 137.1 135.1 139.1 143.5 148.0 151.8 39 Proprietors’ income1........................................................................... 117.1 131.6 130.6 124.9 129.7 134.0 132.1 134.3 40 Business and professional1 ............................................................ 91.0 100.7 107.2 101.6 107.6 111.6 113.2 112.6 41 Farm1 .............................................................................................. 26.1 30.8 23.4 23.3 22.1 22.5 18.9 21.7 42 Rental income of persons2................................................................ 27.4 30.5 31.8 31.5 32.0 32.4 32.7 33.3 43 Corporate profits1............................................................................... 199.0 196.8 182.7 169.3 177.9 183.3 203.0 n.a. 44 Profits before tax3........................................................................... 223.3 255.4 245.5 217.9 237.6 249.5 259.1 n.a. 45 Inventory valuation adjustment.................................................... -24.3 -42.6 -45.7 -31.1 -41.7 -48.4 -39.2 -24.1 46 Capital consumption adjustment................................................... -13.5 -15.9 -17.2 -17.6 -17.9 -17.8 -16.9 -19.0 47 Net interest........................................................................................ 115.8 143.4 179.8 175.3 185.3 193.3 200.8 211.0 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. 1980 1981 Account 1978 1979 1980 Q2 Q3 Q4 Ql Q2 Personal Income and Saving 1 Total personal income......................................................................... 1,721.8 1,943.8 2,160.2 2,114.5 2,182.1 2,256.2 2,319.8 2,367.8 2 Wage and salary disbursements............................................................ 1,105.2 1,236.1 1,343.7 1,320.4 1,341.8 1,397.8 1,442.9 1,465.9 3 Commodity-producing industries.................................... .............. 389.1 437.9 465.4 456.0 460.1 484.0 501.3 507.4 4 Manufacturing.................................................................................. 299.2 333.4 350.7 343.2 346.7 364.0 377.4 386.2 5 Distributive industries........................................................................ 270.5 303.0 328.9 323.2 329.2 340.6 351.9 357.8 6 Service industries................................................................................ 226.1 259.2 295.7 290.8 298.7 310.0 322.5 330.4 7 Government and government enterprises........................................ 219.4 236.1 253.6 250.5 253.9 263.3 267.1 270.3 8 Other labor income................................................................................ 102.2 118.6 137.1 135.1 139.1 143.5 148.0 151.8 9 Proprietors’ income1................................................................................ 117.2 131.6 130.6 124.9 129.7 134.0 132.1 134.3 10 Business and professional1 ................................................................ 91.0 100.8 107.2 101.6 107.6 111.6 113.2 112.6 11 Farm1 .................................................................................................... 26.1 30.8 23.4 23.3 22.1 22.5 18.9 21.7 12 Rental income of persons2.................................................................... 27.4 30.5 31.8 31.5 32.0 32.4 32.7 33.3 13 Dividends.................................................................................................. 43.1 48.6 54.4 54.2 55.1 56.1 58.0 60.2 14 Personal interest income........................................................................ 173.2 209.6 256.3 253.6 261.8 269.7 288.7 301.3 15 Transfer payments.................................................................................. 223.3 249.4 294.2 280.7 310.7 313.9 319.6 323.9 16 Old-age survivors, disability, and health insurance benefits........ 116.2 131.8 153.8 144.7 163.2 165.3 169.8 171.8 17 Less: Personal contributions for social insurance.......................... 69.6 80.6 87.9 85.9 88.1 91.2 102.3 103.0 18 Equals: Personal income...................................................................... 1,721.8 1,943.8 2,160.2 2,114.5 2,182.1 2,256.2 2,319.8 2,367.8 19 Less: Personal tax and nontax payments........................................ 258.8 302.0 338.5 330.3 341.5 359.2 372.0 382.4 20 Equals: Disposable personal income.................................................. 1,462.9 1,641.7 1,821.7 1,784.1 1,840.6 1,897.0 1,947.8 1,985.4 21 Less: Personal outlays........................................................................ 1,386.6 1,555.5 1,720.4 1,674.1 1,729.2 1,799.4 1,858.9 1,879.4 22 Equals: Personal saving........................................................................ 76.3 86.2 101.3 110.0 111.4 97.6 88.9 106.0 Memo: Per capita (1972 dollars) 23 Gross national product........................................................................ 6,426' 6,588' 6,503' 6,438' 6,456' 6,499' 6,619' 6,576 24 Personal consumption expenditures.................................................. 4,046' 4,135' 4,108' 4,044' 4,082' 4,142' 4,191' 4,164 25 Disposable personal income.............................................................. 4,389' 4,493' 4,473' 4,435' 4,468' 4,488' 4,511' 4,516 26 Saving rate (percent).............................................................................. 5.2 5.2 5.6 6.2 6.1 5.1 4.6 5.3 Gross Saving 27 Gross saving........................................................................................ 355.2 412.0 401.9 394.5 402.0 406.7 442.7 n.a. 28 Gross private saving................................................................................ 355.4 398.9 432.9 435.9 446.5 436.4 447.7 n.a. 29 Personal saving........................................................................................ 76.3 86.2 101.3 110.0 111.4 97.6 88.9 106.0 30 Undistributed corporate profits1 .......................................................... 57.9 59.1 44.3 42.1 42.8 40.4 52.3 n.a. 31 Corporate inventory valuation adjustment.......................................... -24.3 -42.6 -45.7 -31.1 -41.7 -48.4 -39.2 -24.1 Capital consumption allowances 32 Corporate.................................................................................................. 136.4 155.4 175.4 173.0 178.4 183.2 187.5 194.6 33 Noncorporate............................................................................................ 84.8 98.2 111.8 110.7 113.4 115.8 119.0 122.7 34 Wage accruals less disbursements........................................................ .0 .0 .0 .0 .5 -.5 .0 0 35 Government surplus, or deficit (-), national income and product accounts............................................................................................ -0.2 11.9 -32.1 -29.6 -45.6 -30.8 -6.2 n.a. 36 Federal.................................................................................................. -29.2 -14.8 -61.2 -66.5 -74.2 -67.9 -43.3 n.a. 37 State and local...................................................................................... 29.0 26.7 29.1 23.9 28.6 37.1 37.0 n.a. 38 Capital grants received by the United States, net.............................. .0 1.1 1.1 1.1 1.1 1.1 1.2 1.1 39 Gross investment................................................................................. 361.6 414.1 401.2 392.5 405.0 400.1 446.0 452.0 40 Gross private domestic............................................................................ 375.3 415.8 395.3 390.9 377.1 397.7 437.1 453.8 41 Net foreign................................................................................................ -13.8 -1.7 5.9 1.7 27.8 2.3 8.9 -1.8 42 Statistical discrepancy......................................................................... 6.4 2.2 -.7 -1.9 3.0 -6.6 3.4 n.a. 1. With inventory valuation and capital consumption adjustments. Source. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 International Statistics □ August 1981 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1980 1981 Item credits or debits 1978 1979 1980 Ql Q2 Q3 Q4 Ql p 1 Balance on current account.............................................................. -14,075 1,414 3,723 -2,095 -545 4,975 1,390 3,087 2 Not seasonally adjusted................................................................ -1,575 905 1,149 3,244 3,368 3 Merchandise trade balance2.......................................................... -33,759 -27,346 -25,342 -10,126 -6,744 -2,902 -5,570 -4,602 4 Merchandise exports................................................................... 142,054 184,473 223,966 54,898 55,667 56,252 57,149 61,117 5 Merchandise imports................................................................... -175,813 -211,819 -249,308 -65,024 -62,411 -59,154 -62,719 -65,719 6 Military transactions, net.............................................................. 738 -1,947 -2,515 -918 -427 -455 -715 -701 7 Investment income, net3................................................................. 21,400 33,462 32,762 9,836 6,518 8,154 8,257 8,869 8 Other service transactions, net................................................... 2,613 2,839 5,874 991 1,440 1,681 1,762 1,033 9 Remittances, pensions, and other transfers........................... -1,884 -2,057 -2,397 -542 -545 -591 -720 -562 10 U.S. government grants (excluding military)........................ -3,183 -3,536 -4,659 -1,336 -787 -912 -1,624 -950 11 Change in U.S. government assets, other than official re­ serve assets, net (increase, - ) ............................................... -4,644 -3,767 -5,165 -1,456 -1,187 -1,427 -1,094 -1,358 12 Change in U.S. official reserve assets (increase, - ) ............. 732 -1,132 -8,155 -3,268 -502 -1,109 -4,279 -4,529 13 Gold...................................................................................................... -65 -65 0 0 0 0 0 0 14 Special drawing rights (SDRs)................................................... 1,249 -1,136 -16 -1,152 -112 -261 1,285 -1,441 15 Reserve position in International Monetary Fund................ 4,231 -189 -1,667 -34 -99 -294 -1,240 -707 16 Foreign currencies............................................................................ -4,683 257 -6,472 -2,082 489 -554 -4,324 -2,381 17 Change in U.S. private assets abroad (increase, -)3............. -57,158 -57,739 -71,456 -7,915 -24,152 -16,766 -22,622 -12,633 18 Bank-reported claims..................................................................... -33,667 -26,213 -46,947 -1,203 -20,165 -12,440 -13,139 -11,163 19 Nonbank-reported claims.............................................................. -3,853 -3,026 -2,653 -1,083 92 343 -2,005 n.a. 20 U.S. purchase of foreign securities, net................................. -3,582 -4,552 -3,310 -766 -1,369 -818 -356 -488 21 U.S. direct investments abroad, net3........................................ -16,056 -23,948 -18,546 -4,863 -2,710 -3,851 -7,122 -982 22 Change in foreign official assets in the United States (increase, +)................................................................................ 33,561 -13,757 15,492 -7,462 -7,557 7,686 7,712 5,384 23 U.S. Treasury securities................................................................. 23,555 -22,435 9,683 -5,357 -4,360 3,769 6,911 7,055 24 Other U.S. government obligations.......................................... 666 463 2,187 801 250 549 587 454 25 Other U.S. government liabilities4............................................ 2,359 -133 636 -68 420 80 205 55 26 Other U.S. liabilities reported by U.S. banks...................... 5,551 7,213 -159 -3,198 -1,676 1,823 -460 -3,009 27 Other foreign official assets5........................................................ 1,4530 1,135 3,145 360 851 1,465 469 829 28 Change in foreign private assets in the United States (increase, +)7.............................................................................. 30,187 52,703 34,769 14,971 -326 3,965 16,157 2,157 29 U.S. bank-reported liabilities..................................................... 16,141 32,607 10,743 6,599 -4,509 916 7,737 -3,662 30 U.S. nonbank-reported liabilities............................................... 1,717 2,065 5,109 416 1,092 373 3,228 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 2,178 4,820 2,679 3,300 -1,260 -254 893 1,405 32 Foreign purchases of other U.S. securities, net.................... 2,254 1,334 5,384 2,435 468 241 2,240 2,449 33 Foreign direct investments in the United States, net3----- 7,896 11,877 10,853 2,221 3,883 2,689 2,059 1,965 34 Allocation of SDRs.............................................................................. 0 1,139 1,152 1,152 0 0 0 1,093 35 Discrepancy........................................................................................... 11,398 21,140 29,640 6,073 18,151 2,676 2,736 6,799 36 Owing to seasonal adjustments................................................... -206 1,355 -3,291 2,139 -344 37 Statistical discrepancy in recorded data before seasonal adjustment................................................................................ 11,398 21,140 29,640 6,279 16,796 5,967 597 7,143 Memo: Changes in official assets 38 U.S. official reserve assets (increase, -)................................. 732 -1,132 -8,155 -3,268 502 -1,109 -4,279 -4,529 39 Foreign official assets in the United States (increase, + )............................................................................ 31,202 -13,624 14,856 -7,394 7,137 7,606 7,507 5,329 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) ............................................................................................. -1,137 5,543 12,744 2,988 4,617 4,115 1,024 5,188 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above).......................................................... 236 305 635 144 155 125 211 193 1. Seasonal factors are no longer calculated for lines 12 through 41. 4. 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 data, shown in table 3.11, for reasons of coverage and timing; military exports 5. Consists of investments in U.S. corporate stocks and in debt securities of are excluded from merchandise data and are included in line 6. private corporations and state and local governments. 3. Includes reinvested earnings of incorporated affiliates. Note. Data are from Bureau of Economic Analysis, Survey of Current Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Trade and Reserve Assets A53 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1980 1981 1978 1980' Dec. Jan. Feb. Mar Apr. May June 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments............................................. 143,682 181,860 220,626 19,251 18,825 19,764 21,434 19,818 18,869 19,870 2 GENERAL IMPORTS including mer­ chandise for immediate consump­ tion plus entries into bonded warehouses.......................................... 174,759 209,458 244,871 21,436 23,194 21,922 20,949 22,289 21,310 21,975 3 Trade balance...................................... -31,075 -27,598 -24,245 -2,185 -4,369 -2,158 485 -2,471 -2,441 -2,105 Note. The data in this table are reported by the Bureau of Census data on a account” in table 3.10, line 6). On the import side, additions are made for gold, free-alongside-ship (f.a.s.) value basis—that is, value at the port of export. Begin­ ship purchases, imports of electricity from Canada and other transactions; military ning in 1981, foreign trade of the U.S. Virgin Islands is included in the Census payments are excluded and shown separately as indicated above. basis trade data; this adjustment has been made for all data shown in the table. The Census basis data differ from merchandise trade data shown in table 3.10, Source. FT900 “Summary of U.S. Export and Import Merchandise Trade” U.S. International Transactions Summary, for reasons of coverage and timing. On (U.S. Department of Commerce, Bureau of the Census). the export side, the largest adjustments are: (a) the addition of exports to Canada not covered in Census statistics, and (b) the exclusion of military sales (which are combined with other military transactions and reported separately in the “service 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1981 Type 1978 1979 1980 Jan. Feb. Mar. Apr. May June July 1 Total1................................................ 18,650 18,956 26,756 28,316 29,682 30,410 29,693 29,395 29,582 28,867 2 Gold stock, including Exchange Stabili­ zation Fund1 .......................................... 11,671 11,172 11,160 11,159 11,156 11,154 11,154 11,154 11,154 11,154 3 Special drawing rights2,3............................. 1,558 2,724 2,610 3,628 3,633 3,913 3,712 3,652 3,689 3,717 4 Reserve position in International Mone­ tary Fund2 ............................................... 1,047 1,253 2,852 2,867 3,110 3,448 3,576 3,690 3,988 4,154 5 Foreign currencies4,5.................................... 4,374 3,807 10,134 10,662 11,783 11,895 11,251 10,899 10,751 9,842 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, 19/0; $717 million on Jan. 1, 1971; $710 million on Jan. 1, 3.22. 1972; $1,139 million on Jan. 1, 1979; $1,152 million on Jan. 1, 1980; and $1,093 2. Beginning July 1974, the IMF adopted a technique for valuing the SDR based million on Jan. 1, 1981; plus net transactions in SDRs. on a weighted average of exchange rates for the currencies of member countries. 4. Beginning November 1978, valued at current market exchange rates. From July 1974 through December 1980, 16 currencies were used; from January 5. Includes U.S. government securities held under repurchase agreement against 1981, 5 currencies have been used. The U.S. SDR holdings and reserve position receipt of foreign currencies, if any. in the IMF also are valued on this basis beginning July 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics □ August 1981 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1980 1981 Asset account 1977 19781 1979 Nov. Dec. Jan. Feb. Mar. Apr. May* All foreign countries 1 Total, all currencies................................ 258,897 306,795 364,233 389,184 397,516r 397,602' 401,094' 410,087' 410,581 416,258 2 Claims on United States.......................... 11,623 17,340 32,302 30,617 28,459 29,534' 31,923' 30,256 34,519 38,614 3 Parent bank............................................ 7,806 12,811 25,929 22,254 20,202 20,674' 21,369' 18,781 23,086 27,981 4 Other........................................................ 3,817 4,529 6,373 8,363 8,257 8,860 10,554 11,475 11,433 10,633 5 Claims on foreigners.................................. 238,848 278,135 317,175 341,027r 351,435' 350,313' 351,101' 361,413' 357,642 358,675 6 Other branches of parent bank.......... 55,772 70,338 79,661 74,062 76,547' 75,604' 75,516' 77,611' 77,113 76,289 7 Banks...................................................... 91,883 103,111 123,413 139,977 144,701' 144,836' 146,204' 150,596 147,656 148,464 8 Public borrowers2.................................. 14,634 23,737 26,072 27,114' 27,845' 27,830' 28,138' 28,758' 28,121 27,728 9 Nonbank foreigners.............................. 76,560 80,949 88,029 99,874 102,342' 102,043' 101,243 104,448' 104,752 106,194 10 Other assets................................................ 8,425 11,320 14,756 17,540' 17,622' 17,755' 18,070' 18,418' 18,420 18,969 11 Total payable in U.S. dollars................... 193,764 224,940 267,711 284,401 290,017' 292,665' 296,918' 302,851' 307,038 312,249 12 Claims on United States.......................... 11,049 16,382 31,171 29,173 27,190 28,278' 30,660' 29,063 33,306 37,372 13 Parent bank............................................ 7,692 12,625 25,632 21,853 19,896 20,382' 21,107' 18,566 22,839 27,678 14 Other........................................................ 3,357 3,757 5,539 7,320 7,294 7,896 9,553 10,497 10,467 9,694 15 Claims on foreigners.................................. 178,896 203,498 229,118 246,363 253,647' 254,847' 256,332' 263,641' 263,224 263,872 16 Other branches of parent bank.......... 44,256 55,408 61,525 57,238 58,268' 58,831' 57,923' 59,850 59,824 58,803 17 Banks...................................................... 70,786 78,686 96,261 110,799 116,047' 116,935' 118,428' 121,475 120,222 121,455 18 Public borrowers2 .................................. 12,632 19,567 21,629 22,846 23,458' 23,258' 23,561' 24,035' 23,767 23,194 19 Nonbank foreigners ..;........................ 51,222 49,837 49,703 55,480 55,874' 55,823' 56,420 58,281' 59,411 60,420 20 Other assets................................................ 3,820 5,060 7,422 8,865 9,180' 9,540' 9,926' 10,147' 10,508 11,005 United Kingdom 21 Total, all currencies.................................. 90,933 106,593 130,873 140,715 142,781 143,609 144,708' 145,459 142,582 146,605 22 Claims on United States.......................... 4,341 5,370 11,117 8,771 7,508 7,727 9,126' 9,413 8,518 10,347 23 Parent bank............................................ 3,518 4,448 9,338 6,552 5,275 5,278 6,386' 6,405 5,766 7,631 24 Other........................................................ 823 922 1,779 2,219 2,233 2,449 2,740 3,008 2,752 2,716 25 Claims on foreigners.................................. 84.016 98,137 115,123 125,859 129,232 130,174 129,646 129,992 128,095 130,200 26 Other branches of parent bank.......... 22.017 27,830 34,291 32,267 34,538 35,136 35,406 34,583 34,614 34,834 27 Banks...................................................... 39,899 45,013 51,343 57,423 57,658 58,489 58,554 58,714 56,816 57,611 28 Public borrowers2.................................. 2,206 4,522 4,919 6,405 6,684 6,620 6,626 6,929 6,844 6,720 29 Nonbank foreigners.............................. 19,895 20,772 24,570 29,764 30,352 29,929 29,060 29,766 29,821 31,035 30 Other assets................................................ 2,576 3,086 4,633 6,085 6,041 5,708 5,936 6,054 5,969 6,058 31 Total payable in U.S. dollars.................... 66,635 75,860 94,287 97,246 98,913 101,038 102,954' 102,933 101,506 104,924 32 Claims on United States.......................... 4,100 5,113 10,746 8,233 7,115 7,304 8,671' 9,001 8,080 9,897 33 Parent bank............................................ 3,431 4,386 9,297 6,410 5,229 5,221 6,324' 6,381 5,715 7,576 34 Other........................................................ 669 727 1,449 i;823 1,886 2,083 2,347 2,620 2,365 2,321 35 Claims on foreigners.................................. 61,408 69,416 81,294 86,246 88,950 90,682 91,204 90,696 90,199 91,632 36 Other branches of parent bank.......... 18,947 22,838 28,928 26,710 28,231 28,768 28,946 28,132 28,393 28,527 37 Banks...................................................... 28,530 31,482 36,760 40,542 41,373 42,887 42,751 42,609 41,767 42,786 38 Public borrowers2.................................. 1,669 3,317 3,319 4,706 4,909 4,816 4,930 5,168 5,093 4,967 39 Nonbank foreigners.............................. 12,263 11,779 12,287 14,288 14,437 14,211 14,577 14,787 14,946 15,352 40 Other assets................................................ 1,126 1,331 2,247 2,767 2,848 3,052 3,079 3,236 3,227 3,395 Bahamas and Caymans 41 Total, all currencies.................................. 79,052 91,735 108,977 119,367 123,837 123,460 124,809 127,801 132,045 133,513 42 Claims on United States.......................... 5,782 9,635 19,124 18,325 17,751 18,370 19,150 17,348 22,473 24,531 43 Parent bank............................................ 3,051 6,429 15,196 13,071 12,631 12,842 12,417 10,017 14,908 17,511 44 Other....................................................... 2,731 3,206 3,928 5,254 5,120 5,528 6,733 7,331 7,565 7,020 45 Claims on foreigners.................................. 71,671 79,774 86,718 96,800 101,926 100,792 101,199 105,970 104,983 104,117 46 Other branches of parent bank.......... 11,120 12,904 9,689 13,118 13,315 12,956 11,998 14,002 13,436 12,334 47 Banks...................................................... 27,939 33,677 43,189 50,626 54,888 54,252 55,280 57,065 56,996 56,896 48 Public borrowers2.................................. 9,109 11,514 12,905 12,213 12,577 12,558 12,605 12,579 12,205 12,169 49 Nonbank foreigners.............................. 23,503 21,679 20,935 20,843 21,146 21,026 21,316 22,324 22,346 22,718 50 Other assets................................................ 1,599 2,326 3,135 4,242 4,160 4,298 4,460 4,483 4,589 4,865 51 Total payable in U.S. dollars................... 73,987 85,417 102,368 113,560 117,654 117,549 119,007 121,900 126,411 127,965 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 1981 Liability account 1977 19781 1979 Nov. Dec. Jan. Feb. ' Mar. Apr. May? All foreign countries 285,897 306,795 364,233 389,184 397,516r 397,602r 401,094 410,087' 410,581 416,258 44,154 58,012 66,686 86,589 90,966r 92,388' 90,657 97,676' 105,706 105,321 24,542 28,654 24,530 36,974r 39,176' 38,679' 36,374 43,025' 45,269 40,951 56 Nonbanks................................................ 19,613 1 12 7, ,1 18 6 9 9 2 1 8 3 , , 1 9 8 6 8 8 3 13 6 , , 4 1 2 9 0 5' 3 14 7 , , 4 2 7 7 3 2r 4 1 0 3 , , 1 59 1 1 8 4 1 0 3 , , 3 9 2 5 4 9 4 1 0 4 , , 2 3 7 7 9 2 4 1 4 5 , , 9 47 6 1 6 4 1 8 6 , , 1 2 4 3 0 0 206,579 238,912 283,344 288,385 292,013' 290,905' 296,557 297,983' 290,039 295,539 58 Other branches of parent bank.......... 53,244 67,496 77,601 71,554 74,032r 73,084' 73,764 75,320' 74,831 75,876 59 Banks...................................................... 94,140 97,711 122,849 132,281 130,743r 133,055r 134,867 133,715 128,434 133,038 60 Official institutions................................ 28,110 31,936 35,664 31,145 32,448r 28,951' 28,602 29,871 28,028 27,456 61 Nonbank foreigners.............................. 31,085 41,769 47,230 53,405 54,790r 55,815r 59,324 59,077 58,746 59,169 62 Other liabilities.......................................... 8,163 9,871 14,203 14,210 14,582r 14,309' 13,880 14,428' 14,836 15,398 63 Total payable in U.S. dollars................... 198,572 230,810 273,819 292,549 301,139r 303,368' 307,535 313,610' 318,378 323,894 64 To United States........................................ 42,881 55,811 64,530 83,764 88,131' 89,759' 88,268 95,264' 103,261 102,961 65 Parent bank............................................ 24,213 27,519 23,403 35,233 37,504'' 37,021' 34,898 41,513r 43,797 39,521 6 6 6 7 N Ot o h n e b r a b n a k n s k .. s . .. i . n .. . U .... n .. i . t . e .. d ... . S ... t . a .. t .. e .. s .. .. . . . . . . .. . . .. .. .. . . . . .. .. . 18,669 1 1 1 6 , , 9 3 1 7 5 7 2 1 7 3 , ,7 3 7 5 1 6 3 1 5 3 , , 4 1 0 2 7 4 3 1 6 4 , ,2 4 0 2 3 4 3 1 9 3 , , 3 4 2 1 1 7 3 1 9 3 , , 6 7 1 5 3 7 3 1 9 4 , , 5 23 1 5 6 4 1 4 5 , , 1 2 6 9 6 8 4 1 7 6 , , 3 1 3 0 6 4 68 To foreigners................................................... 151,363 169,927 201,476 200,937 204,834' 205,339' 210,693 209,459' 205,549 211,352 69 Other branches of parent bank........... 43,268 53,396 60,513 55,599 57,050' 56,972' 56,894 58,507' 58,454 59,170 70 Banks............................................................ 64,872 63,000 80,691 86,556 86,642' 89,436' 91,657 87,521 85,627 89,457 71 Official institutions................................ 23,972 26,404 29,048 23,870 24,692' 21,863' 21,896 23,102 21,444 21,339 72 Nonbank foreigners.............................. 19,251 27,127 31,224 34,912 36,450' 37,068' 40,246 40,329 40,024 41,386 73 Other liabilities.......................................... 4,328 5,072 7,813 7,848 8,174' 8,270' 8,574 8,887' 9,568 9,581 United Kingdom 74 Total, all currencies...................................... 90,933 106,593 130,873 140,715 142,781 143,609 144,708 145,459 142,582 146,605 75 To United States............................................. 7,753 9,730 20,986 20,594 21,735 23,226 22,754 24,374 26,008 26,791 76 Parent bank............................................ 1,451 1,887 3,104 3,198 4,176 4,228 3,190 4,242 4,542 4,343 7 7 8 7 N O o th n e b r a b n a k n s k .. s .. . i . n .. .. U ... n .. i . t . e .. d ... . S ... t . a .. t .. e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,302 4 3 , , 1 6 8 5 9 4 1 7 0 , , 6 1 9 8 3 9 1 5 1 , , 7 6 3 6 2 4 1 5 1 , , 7 8 1 43 6 1 5 3 , , 4 5 3 6 6 2 1 5 3 , , 8 7 4 2 0 4 1 5 4 , , 5 6 1 13 9 1 5 5 , , 9 5 1 51 5 1 5 6 , , 9 4 6 8 5 3 79 To foreigners................................................... 80,736 93,202 104,032 114,813 115,582 115,236 116,862 115,816 111,486 114,477 80 Other branches of parent bank........... 9,376 12,786 12,567 13,951 13,933 13,734 13,335 13,913 13,491 14,169 81 Banks...................................................... 37,893 39,917 47,620 58,127 55,928 57,371 57,527 56,110 53,563 56,238 82 Official institutions................................ 18,318 20,963 24,202 20,437 21,412 19,199 19,591 19,743 18,385 18,503 83 Nonbank foreigners.............................. 15,149 19,536 19,643 22,298 24,309 24,932 26,409 26,050 26,047 25,567 84 Other liabilities............................................... 2,445 3,661 5,855 5,308 5,464 5,147 5,092 5,269 5,088 5,337 85 Total payable in U.S. dollars................... 67,573 77,030 95,449 99,135 102,300 104,123 106,354 106,637 105,847 109,174 86 To United States........................................ 7,480 9,328 20,552 19,978 21,080 22,597 22,245 23,927 25,499 26,324 87 Parent bank............................................ 1,416 1,836 3,054 3,101 4,078 4,126 3,132 4,160 4,447 4,273 8 89 8 N O o th n e b r a b n a k n s k .. s .. . i .. n .. .. U ... n .. i .. t . e .. d ... .. S .. t .. a .. t .. e .. s .. . . . .. . . . . . . . . . . . . . . . . . . . .. . . . 6,064 4 3 , , 1 3 0 9 1 1 9 7 , ,6 8 5 4 1 7 1 5 1 , ,2 6 6 1 1 6 1 5 1 , , 6 3 2 7 6 6 1 5 3 , , 3 1 4 2 3 8 1 5 3 , , 7 3 5 5 7 6 1 5 4 , , 4 2 8 8 7 0 1 5 5 , , 8 2 4 1 1 1 1 5 6 , , 9 1 1 4 1 0 90 To foreigners................................................... 58,977 66,216 72,397 76,696 78,512 78,768 81,006 79,501 77,212 79,575 91 Other branches of parent bank........... 7,505 9,635 8,446 9,770 9,600 9,591 9,097 9,297 9,168 9,327 92 Banks...................................................... 25,608 25,287 29,424 35,998 35,177 36,463 37,007 34,553 34,117 35,899 93 Official institutions.................................... 15,482 17,091 20,192 15,989 17,024 14,941 15,404 15,718 14,473 14,846 94 Nonbank foreigners.............................. 10,382 14,203 14,335 14,939 16,711 17,773 19,498 19,933 19,454 19,503 95 Other liabilities.......................................... 1,116 1,486 2,500 2,461 2,708 2,758 3,103 3,209 3,136 3,275 Bahamas and Caymans 96 Total, all currencies...................................... 79,052 91,735 108,977 119,367 123,837 123,460 124,809 127,801 132,045 133,513 97 To United States............................................. 32,176 39,431 37,719 56.860 59,666 58,928 58,607 64,031 69,484 69,048 98 Parent bank............................................ 20,956 20,482 15,267 26.861 28,181 26,563 26,222 31,746 32,931 29,583 1 9 0 9 0 O N t o h n e b r a b n a k n s k .. s . .. i . n .. . U .... n .. i . t . e .. d ... . S ... t . a .. t .. e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,220 1 6 2 , , 0 8 7 7 3 6 1 5 7 , , 2 2 0 4 4 8 23 6 , , 4 5 7 2 1 8 2 7 4 , , 3 1 7 0 9 6 2 7 5 , , 1 2 2 3 6 9 2 7 5 , , 1 2 6 2 5 0 2 7 4 , , 8 4 8 0 3 2 2 8 7 , , 6 93 1 5 8 3 9 0 , , 2 1 9 6 7 8 101 To foreigners.............................................. 45,292 50,447 68,598 59,492 61,218 61,597 63,323 60,875 59,326 61,090 102 Other branches of parent bank........... 12,816 16,094 20,875 15,878 17,040 17,819 18,781 17,436 18,150 18,079 103 Banks...................................................... 24,717 23,104 33,631 28,933 29,895 30,050 30,289 28,671 26,753 28,639 104 Official institutions................................ 3,000 4,208 4,866 4,368 4,361 4,204 3,663 4,403 4,079 3,666 105 Nonbank foreigners.............................. 4,759 7,041 9,226 10,313 9,922 9,524 10,590 10,365 10,344 10,706 106 Other liabilities.......................................... 1,584 1,857 2,660 3,015 2,953 2,935 2,879 2,895 3,235 3,375 107 Total payable in U.S. dollars................... 74,463 87,014 103,460 115,121 119,657 119,214 120,714 123,785 128,217 129,807 1. In May 1978 the exemption level for branches required to report was increased, cluding corporations that are majority owned by foreign governments, replaced which reduced the number of reporting branches. the previous, more narrowly defined claims on foreign official institutions. 2. In May 1978 a broader category of claims on foreign public borrowers, in­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics □ August 1981 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1981 Item 1978r 1979r 1980r Jan.r Feb/ Mar.Ar Apr. May/* JuneP 1 Total1........................................................................... 162,775 149,697 164,576 162,991 162,880 170,193 170,213 170,599 165,653 167,024 2 Liabilities reported by banks in the United States2 . 23,326 30,540 30,381 27,046 25,025 27,471 27,491 25,563 23,813 25,205 3 U.S. Treasury bills and certificates3............................. 67,671 47,666 56,243 56,522 56,988 60,493 60,493 61,670 57,858 57,719 U.S. Treasury bonds and notes 4 Marketable......................................................................... 35,894 37,590 41,455 42,320 43,725 44,808 44,808 45,303 45,625 46,605 5 Nonmarketable4.............................................................. 20,970 17,387 14,654 14,654 14,494 14,294 14,294 14,294 14,294 13,202 6 U.S. securities other than U.S. Treasury securities5 14,914 16,514 21,843 22,449 22,648 23,127 23,127 23,769 24,063 24,293 By area 7 Western Europe1................................................................... 93,089 85,633 81,592 80,434 78,334 79,981 79,999 78,242 71,657 71,101 8 Canada .................................................................................... 2,486 1,898 1,562 1,174 1,089 1,437 1,437 1,177 1,365 1,248 9 Latin America and Caribbean........................................ 5,046 6,291 5,688 5,456 5,242 6,365 6,365 5,908 5,536 6,103 10 Asia........................................................................................... 59,004 52,978 70,782 70,769 73,162 77,169 77,171 79,255 81,042 83,107 11 Africa....................................................................................... 2,408 2,412 4,123 3,973 3,947 4,087 4,087 4,187 3,927 3,190 12 Other countries6................................................................... 742 485 829 1,185 1,106 1,154 1,154 1,830 2,126 2,274 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. A Data in the two columns for this date differ because of changes in reporting 3. Includes nonmarketable certificates of indebtedness (including those payable coverage. Figures in the first column are comparable in coverage with those shown in foreign currencies through 1974) and Treasury bills issued to official institutions for the preceding month; figures in the second column are comparable with those of foreign countries. for the following month. 4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds and notes payable in foreign currencies. Note. Based on Treasury Department data and on data reported to the Treasury Department by banks (including Federal Reserve Banks) and securities dealers in the United States. 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 1980 1981 Item 1977 1978 1979 June Sept. Dec. Mar.A 1 Banks’ own liabilities........................ ...................................... 925 2,406 1,918 2,739 2,754 3,748 3,268 3,262 2 Banks’ own claims1....................................................................... 2,356 3,671 2,419 2,874 3,203 4,206 4,238 4,245 3 Deposits....................................................................................... 941 1,795 994 1,090 1,169 2,507 1,697 1,758 4 Other claims................................................................................ 1,415 1,876 1,425 1,784 2,035 1,699 2,542 2,488 5 Claims of banks’ domestic customers2................................. 358 580 798 595 962 444 444 1. Includes claims of banks’ domestic customers through March 1978. A Data in the two columns for this date differ because of changes in reporting 2. Assets owned by customers of the reporting bank located in the United States coverage. Figures in the first column are comparable in coverage with those shown that represent claims on foreigners held by reporting banks for the accounts of for the preceding quarter; figures in the second column are comparable with those their domestic customers. for the following quarter. Note. Data on claims exclude foreign currencies held by U.S. monetary au­ thorities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-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 1981 Holder and type of liability 1978 1979 1980 Jan. Feb. Mar.A Apr. May June/7 1 All foreigners.............................................................. 166,842 187,521 205,295 202,397 r 201,515 r 203,651r 205,284 r 213,152r 213,648 209,572 2 Banks’ own liabilities.......................................................... 78,661 117,196 124,789 122,857 121,528 120,217 120,425 128,115r 132,087 128,793 3 Demand deposits.............................................................. 19,218 23,303 23,462 22,149 23,300 21,308 21,216 22,644 22,193 23,186 4 Time deposits1................................................................... 12,427 13,623 15,076 15,898 15,778 16,272 16,304 15,719r 16,046 16,538 5 Other2.................................................................................. 9,705 16,453 17,581 14,685 13,476 15,947 16,199 14,789' 12,316 14,124 6 Own foreign offices3........................................................ 37,311 63,817 68,670 70,125 68,973 66,690 66,707 74,963' 81,532 74,944 7 Banks’ custody liabilities4.................. ........................... 88,181 70,325 80,506 79,539' 79,988r 83,433r 84,859' 85,037r 81,560 80,799 8 U.S. Treasury bills and certificates5......................... 68,202 48,573 57,595 57,673 58,518r 62,259r 62,342' 63,273' 59,583 59,726 9 Other negotiable and readily transferable instruments6.............................................................. 17,472 19,396 20,079 19,050 18,350 18,226 18,207 17,886' 17,647 17,005 10 Other..................................................................................... 2,507 2,356 .2,832 2,816' 3,120r 2,948' 4,310' 3,878' 4,331 4,069 11 Nonmonetary international and regional organizations7...................................................... 2,607 2,356 2,342 1,961 2,003 1,854 1,854 1,804 1,803 1,777 12 Banks’ own liabilities.......................................................... 906 714 442 419 317 293 293 655 498 357 13 Demand deposits.............................................................. 330 260 146 212 186 126 126 178 147 224 14 Time deposits1................................................................... 84 151 85 71 76 67 67 81 80 75 15 Other2................................................................................... 492 303 211 137 54 100 100 396 271 58 16 Banks’ custody liabilities4................................................. 1,701 1,643 1,900 1,542 1,687 1,561 1,561 1,149 1,304 1,420 17 U.S. Treasury bills and certificates........................... 201 102 254 88 368 333 333 63 213 289 18 Other negotiable and readily transferable instruments6.............................................................. 1,499 1,538 1,646 1,453 1,319 1,228 1,228 1,086 1,091 1,132 19 Other..................................................................................... 1 2 0 0 0 0 0 0 0 0 20 Official institutions8................................................... 90,742 78,206 86,624 83,568r 82,013 r 87,963 r 87,983 r 87,233 r 81,671 82,924 21 Banks’ own liabilities.......................................................... 12,165 18,292 17,826 15,222 13,938 16,200 16,220 14,688' 13,466 15,795 22 Demand deposits.............................................................. 3,390 4,671 3,771 3,869 3,580 3,338 3,232 3,768 3,444 3,975 23 Time deposits1................................................................... 2,560 3,050 3,612 3,343 2,997 2,920 2,938 2,412' 2,642 2,551 24 Other2................................................................................... 6,215 10,571 10,443 8,010 7,361 9,941 10,050 8,508' 7,381 9,270 25 Banks’ custody liabilities4................................................. 78,577 59,914 68,798 68,346r 68,075r 71,763r 71,76V 72,545r 68,205 67,129 26 U.S. Treasury bills and certificates5......................... 67,415 47,666 56,243 56,522 56,988r 60,492' 60,492' 61,670r 57,858 57,719 27 Other negotiable and readily transferable instruments6.............................................................. 10,992 12,196 12,501 11,756 10,894 11,080r 11,080 10,790' 10,263 9,337 28 Other..................................................................................... 170 52 54 68r 193r 191r 191 84' 83 73 29 Banks9......................................................................... 57,423 88,316 96,415 96,659 96,608 93,018 94,338 102,542 r 108,484 102,316 30 Banks’ own liabilities.......................................................... 52,626 83,299 90,456 90,594 90,319 86,649 86,620 95,096' 100,389 94,131 31 Unaffiliated foreign banks............................................. 15,315 19,482 21,786 20,469 21,346 19,958 19,914 20,133r 18,857 19,186 32 Demand deposits.......................................................... 11,257 13,285 14,188 12,889 14,287 12,585 12,588 13,493 13,394 13,643 33 Time deposits1.............................................................. 1,429 1,667 1,703 1,857 1,813 2,324 2,305 1,549r 1,687 1,663 34 Other2.............................................................................. 2,629 4,530 5,895 5,723 5,245 5,049 5,021 5,091' 3,776 3,881 35 Own foreign offices3........................................................ 37,311 63,817 68,670 70,125 68,973 66,690 66,707 74,963' 81,532 74,944 36 Banks’ custody liabilities4................................................. 4,797 5,017 5,959 6,065 6,289 6,369 7,717 7,446 8,095 8,186 37 U.S. Treasury bills and certificates........................... 300 422 623 631 714 826 827 839 940 1,164 38 Other negotiable and readily transferable instruments6............................................................... 2,425 2,415 2,748 2,856 2,850 2,928 2,913 2,932 3,053 3,171 39 Other..................................................................................... 2,072 2,179 2,588 2,578 2,726 2,615 3,977 3,675 4,102 3,851 40 Other foreigners........................................................ 16,070 18,642 19,914 20,209 20,891 20,816 21,109 21,573' 21,689 22,575 41 Banks’ own liabilities.......................................................... 12,964 14,891 16,065 16,623 16,955 17,076 17,291 17,676' 17,734 18,510 42 Demand deposits.............................................................. 4,242 5,087 5,356 5,179 5,246 5,259 5,270 5,205 5,208 5,345 43 Time deposits..................................................................... 8,353 8,755 9,676 10,628 10,892 10,961 10,995 11,677r 11,638 12,250 44 Other2................................................................................... 368 1,048 1,033 815 816 856 1,027 794r 888 915 45 Banks’ custody liabilities4................................................. 3,106 3,751 3,849 3,586 3,937 3,740 3,817 3,897' 3,956 4,064 46 U.S. Treasury bills and certificates........................... 285 382 474 432 449 607 690 701 571 554 47 Other negotiable and readily transferable instruments6.............................................................. 2,557 3,247 3,185 2,985 3,287 2,991 2,986 3,078r 3,240 3,366 48 Other..................................................................................... 264 123 190 170 201 141 141 119 145 144 49 Memo: Negotiable time certificates of deposit in custody for foreigners.......................................... 11,007 10,984 10,745 10,267 9,868 9,893 9,887 9,549r 9,841 10,159 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. A Data in the two columns for this date differ because of changes in reporting 4. Financial claims on residents of the United States, other than long-term se­ coverage. Figures in the first column are comparable in coverage with those shown curities, held by or through reporting banks. for the preceding month; figures in the second column are comparable with those for the following month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics □ August 1981 3.16 Continued 1981 Area and country 1978 1979 1980 Jan. Feb. Mar.^ Apr. May June* 1Total........................................................................... 166,842 187,521 205,295 202,397r 201,515r 203,651r 205,284r 213,152r 213,648 209,592 2 Foreign countries........................................................ 164,235 185,164 202,953 200,436r 199,512r 201,796r 203,430r 211,348r 211,845 207,815 3 Europe.................................................................................... 85,172 90,952 90,897 89,701 89,181 91,338 92,495 89,934' 87,362 86,985 4 Austria................................................................................ 513 413 523 554 551 522 522 523r 497 540 5 Belgium-Luxembourg..................................................... 2,550 2,375 4,019 4,062 4,782 4,698 4,698 4,926' 5,510 5,037 6 Denmark.............................................................................. 1,946 1,092 497 420 432 463 461 434 526 415 7 Finland................................................................................ 346 398 455 264 355 332 332 328' 290 305 8 France .................................................................................. 9,214 10,433 12,125 12,168 12,521 12,959 12,950 13,102r 11,366 11,509 9 Germany.............................................................................. 17,283 12,935 9,973 10,336 9,296 12,299 12,305 12,489 9,472 9,628 10 Greece.................................................................................. 826 635 670 524 563 593 593 574' 543 507 11 Italy....................................................................................... 7,739 7,782 7,572 6,743 5,987 3,446 3,453 3,600 3,008 4,629 12 Netherlands....................................................................... 2,402 2,337 2,441 2,568 2,540 2,324 2,328 2,314' 2,176 2,131 13 Norway................................................................................ 1,271 1,267 1,344 899 1,037 1,575 1,575 1,477 1,648 1,743 14 Portugal.............................................................................. 330 557 374 370 358 356 356 309 336 454 15 Spain.................................................................................... 870 1,259 1,500 1,416 1,388 1,631 1,631 1,352 1,678 1,190 16 Sweden ................................................................................ 3,121 2,005 1,737 1,365 2,078 2,408 2,408 2,784' 2,518 2,180 17 Switzerland......................................................................... 18,225 17,954 16,689 16,631 16,636 16,844 16,856 15,739r 15,831 15,808 18 Turkey.................................................................................. 157 120 242 203 231 235 235 209 182 194 19 United Kingdom.............................................................. 14,272 24,700 22,680 24,209 24,325 24,715 25,836 24,343' 25,477 24,743 20 Yugoslavia......................................................................... 254 266 681 296 269 202 202 238 270 312 21 Other Western Europe1................................................. 3,440 4,070 6,939 6,225 5,385 5,338 5,356 4,893' 5,654 5,261 22 U.S.S.R................................................................................ 82 52 68 46 84 47 47 37 85 41 23 Other Eastern Europe2................................................. 330 302 370 401 363 352 350 264 294 358 24 Canada .................................................................................... 6,969 7,379 10,031 9,802 9,131 8,570 8,610 10,338' 11,221 10,209 25 Latin America and Caribbean........................................ 31,638 49,686 53,170 53,229 52,275 50,818 51,178 58,415r 60,080 56,732 26 Argentina........................................................................... 1,484 1,582 2,132 1,857 1,998 1,917 1,917 1,919 1,800 1,991 27 Bahamas.............................................................................. 6,752 15,255 16,381 16,164 15,916 14,183 14,356 18,815 20,140 18,329 28 Bermuda.............................................................................. 428 430 670 475 804 915 913 634r 806 698 29 Brazil.................................................................................... 1,125 1,005 1,216 1,339 1,266 1,151 1,148 1,345 1,347 1,411 30 British West Indies.......................................................... 5,974 11,138 12,766 12,798 12,144 11,566 11,566 13,995' 14,897 12,819 31 Chile..................................................................................... 398 468 460 501 431 549 549 539 526 507 32 Colombia............................................................................ 1,756 2,617 3,077 3,085 3,087 2,970 2,970 2,940' 2,838 2,826 33 Cuba.................................................................................... 13 13 6 6 7 6 6 8 7 7 34 Ecuador .............................................................................. 322 425 371 389 449 511 511 352 391 463 35 Guatemala3....................................................................... 416 414 367 428 461 446 446 416 413 397 36 Jamaica3.............................................................................. 52 76 97 112 101 94 94 141 132 79 37 Mexico................................................................................ 3,467 4,185 4,547 4,595 4,600 4,755 4,756 5,332 4,948 5,344 38 Netherlands Antilles........................................................ 308 499 413 599 523 436 476 442' 415 497 39 Panama................................................................................ 2,967 4,483 4.718 4,460 3,984 4,297 4,445 4,723 4,847 4,645 40 Peru....................................................................................... 363 383 403 401 447 341 342 354 334 450 41 Uruguay .............................................................................. 231 202 254 290 266 306 306 284 334 322 42 Venezuela............................................................................ 3,821 4,192 3.170 3,794 3,925 4,218 4,220 4,178 3,924 3,547 43 Other Latin America and Caribbean...................... 1,760 2,318 2,123 1.936 1,869 2,158 2,158 1,997 1,979 2,399 44 36,492 33,005 42,420 41,687' 43,041r 44,992' 45,068' 45,944' 46,181 47,300 China 45 Mainland......................................................................... 67 49 49 55 55 60 60 46 54 102 46 Taiwan............................................................................ 502 1,393 1,662 1,821 1,733 1,822 1,822 1,798' 1,781 1,935 47 Hong Kong......................................................................... 1,256 1,672 2,548 2,764 3,054 2,440 2,438 2,468' 3,001 3,152 48 India.................................................................................... 790 527 416 437 604 576 576 442 458 408 49 Indonesia............................................................................ 449 504 730 1.170 678 1,063 1,063 944 706 582 50 Israel .................................................................................... 688 707 883 523 557 582 582 444 404 477 51 Japan.................................................................................... 21,927 8,907 16,281 17,701 17,990 19,367 19,442 19,450 19,802 19,558 52 Korea.................................................................................. 795 993 1,528 1,498 1,485 1,380 1,380 1,381 1,397 1,330 53 Philippines......................................................................... 644 795 919 849 1,057 1,115 1,115 1,213 802 1,049 54 Thailand.............................................................................. 427 277 464 367 404 250 250 391 338 422 55 Middle-East oil-exporting countries4........................ 7,534 15,300 14.453 12.254' 13,015r 14,205' 14,205' 15,119' 14,753 15,126 56 Other Asia......................................................................... 1,414 1,879 2,487 2.249 2,409 2,132 2,134 2,247' 2,686 3,159 57 Africa....................................................................................... 2,886 3,239 5.187 4,358 4,371 4,553 4,553 4,529 4,513 3,917 58 Egypt.................................................................................... 404 475 485 313 496 333 333 336 308 289 59 Morocco.............................................................................. 32 33 33 42 30 33 33 34 54 41 60 South Africa....................................................................... 168 184 288 327 258 322 322 330 360 265 61 Zaire................................_................................................... 43 110 57 48 58 28 28 28 24 181 62 Oil-exporting countries"'................................................. 1,525 1,635 3,540 2,921 2,833 3,084 3,084 3,135 3,004 2,388 63 Other Africa..................................................................... 715 804 783 707 697 753 753 666 764 753 64 Other countries..................................................................... 1,076 904 1.247 1,658 1,513 1,526 1,526 2,189' 2,487 2,672 65 Australia.............................................................................. 838 684 950 1,304 1,205 1,287 1,287 1,913' 2,286 2,398 66 All other.............................................................................. 239 220 297 354 307 240 240 275 201 275 67 Nonmonetary international and regional organizations................................................................ 2,607 2,356 2.342 1.961 2,003 1,854 1,854 1,804 1,803 1,777 68 International..................................................................... 1,485 1,238 1.156 913 995 754 754 795 771 747 69 Latin American regional............................................... 808 806 890 769 745 768 768 693 729 722 70 Other regional6................................................................ 314 313 296 279 263 333 333 317 303 307 1. Includes the Bank for International Settlements. Beginning April 1978, also 6. Asian, African, Middle Eastern, and European regional organizations, except includes Eastern European countries not listed in line 23. the Bank for International Settlements, which is included in “Other Western 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­ Europe.” ocratic Republic, Hungary, Poland, and Romania. Data in the two columns for this date differ because of changes in reporting 3. Included in “Other Latin America and Caribbean" through March 1978. coverage. Figures in the first column are comparable in coverage with those for 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the preceding month; figures in the second column are comparable with those for United Arab Emirates (Trucial States). the following month. 5. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-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 1981 Area and country 1978 1979 1980 Jan. Feb. Mar.A Apr. May June? 1 Total........................................................................... 115,545 133,943 172,702 167,338 167,687 179,535 181,551 184,769r 186,403 195,695 2 Foreign countries........................................................ 115,488 133,906 172,624 167,266 167,608 179,461 181,477 184,700r 186,327 195,618 3 Europe.................................................................................... 24,201 28,388 32,155 30,657 30,768 34,136 35,098 34,265r 34,220 36,891 4 Austria................................................................................ 140 284 236 249 191 174 174 151 149 166 5 Belgium-Luxembourg..................................................... 1,200 1,339 1,621 1,739 2,140 2,568 2,573 2,155 2,010 2,793 6 Denmark.............................................................................. 254 147 127 129 172 119 119 141 162 125 7 Finland................................................................................ 305 202 460 322 337 319 326 327r 299 365 8 France .................................................................................. 3,735 3,322 2,958 2,716 3,067 3,838 3,911 3,696 3,164 3,214 9 Germany.............................................................................. 845 1,179 948 993 1,028 1,074 1,122 1,038 1,140 1,099 10 Greece.................................................................................. 164 154 256 264 244 210 210 334 242 213 11 Italy....................................................................................... 1,523 1,631 3,364 3,168 3,105 3,052 3,055 2,926 2,976 3,825 12 Netherlands....................................................................... 677 514 575 642 523 548 560 530 584 625 13 Norway................................................................................ 299 276 227 294 224 223 223 180 173 172 14 Portugal.............................................................................. 171 330 331 299 240 247 247 242 263 353 15 Spain.................................................................................... 1,120 1,051 993 1,131 1,152 1,494 1,497 1,601 1,715 1,768 16 Sweden............................................................................... 537 542 783 688 733 868 884 975 996 794 17 Switzerland......................................................................... 1,283 1,165 1,446 1,753 1,729 1,313 1,375 1,263 1,693 1,690 18 Turkey.................................................................................. 300 149 145 146 155 136 136 132 172 147 19 United Kingdom.............................................................. 10,147 13,795 14,917 13,175 12,949 15,093 15,827 15,652r 15,640 16,186 20 Yugoslavia......................................................................... 363 611 853 863 859 871 872 878 904 988 21 Other Western Europe1................................................. 122 175 179 347 177 176 176 211 147 182 22 U.S.S.R................................................................................ 360 268 281 249 249 265 265 266 254 302 23 Other Eastern Europe2................................................. 657 1,254 1,457 1,490 1,494 1,548 1,548 1,569 1,538 1,884 24 Canada .................................................................................... 5,152 4,143 4,810 4,221 4,872 5,017 5,297 6,091r 5,983 7,020 25 Latin America and Caribbean........................................ 57,565 67,993 92,992 90,792 89,625 96,364 96,829 98,594r 99,551 102,218 26 Argentina............................................................................ 2,281 4,389 5,689 5,642 5,636 5,672 5,672 5,881 5,637 5,807 27 Bahamas.............................................................................. 21,555 18,918 29,419 28,358 28,642 34,139 34,285 33,926r 33,127 34,189 28 Bermuda.............................................................................. 184 496 218 267 364 324 324 401r 481 581 29 Brazil.................................................................................... 6,251 7,713 10,496 10,260 9,801 10,213 10,269 9,924 9,916 10,013 30 British West Indies.......................................................... 9,694 9,818 15,663 14,546 14,338 14,236 14,320 16,143r 17,102 17,818 31 Chile.................................................................................... 970 1,441 1,951 1,862 1,843 1,876 1,876 2,028 2,019 2,073 32 Colombia............................................................................ 1,012 1,614 1,752 1,665 1,435 1,467 1,467 1,457 1,580 1,532 33 Cuba.................................................................................... 0 4 3 4 3 3 3 4 3 4 34 Ecuador .............................................................................. 705 1,025 1,190 1,222 1,179 1,257 1,257 1,229 1,239 1,284 35 Guatemala3....................................................................... 94 134 137 114 113 208 208 98 104 103 36 Jamaica3.............................................................................. 40 47 36 33 41 77 77 34 35 38 37 Mexico................................................................................ 5,479 9,099 12,595 12,687 12,460 12,407 12,447 13,242 13,351 13,992 38 Netherlands Antilles........................................................ 273 248 821 835 655 807 921 809 756 856 39 Panama................................................................................ 3,098 6,041 4,974 5,033 4,964 5,640 5,643 5,477r 6,044 6,061 40 Peru....................................................................................... 918 652 890 912 877 794 794 853 873 817 41 Uruguay.............................................................................. 52 105 137 111 107 103 103 105 100 94 42 Venezuela............................................................................ 3,474 4,657 5,438 5,515 5,514 5,441 5,458 5,325 5,433 5,285 43 Other Latin America and Caribbean...................... 1,485 1,593 1,583 1,728 1,653 1,702 1,705 1,658 1,751 1,672 44 Asia........................................................................................... 25,362 30,730 39,140 38,564 39,113 40,636 40,941 42,439r 42,997 45,995 China 45 Mainland......................................................................... 4 35 195 225 186 201 201 202 204 205 46 Taiwan............................................................................ 1,499 1,821 2,469 2,415 2,270 2,413 2,413 2,568 2,413 2,552 47 Hong Kong......................................................................... 1,479 1,804 2,247 2,250 2,212 2,330 2,330 2,476 2,896 3,248 48 India.................................................................................... 54 92 142 110 142 127 127 134 170 132 49 Indonesia............................................................................ 143 131 245 280 306 288 288 299 268 258 50 Israel.................................................................................... 888 990 1,172 1,081 829 944 981 1,014 1,186 1,309 51 Japan.................................................................................... 12,646 16,911 21,361 21,187 22,314 23,710 23,977 23,862r 24,209 25,999 52 Korea.................................................................................. 2,282 3,793 5,697 5,904 5,936 5,823 5,823 6,024 6,014 6,680 53 Philippines......................................................................... 680 737 989 840 745 605 605 994 1,024 1,230 54 Thailand.............................................................................. 758 933 876 810 808 835 835 829 698 647 55 Middle East oil-exporting countries4......................... 3,125 1,548 1,494 1,435 1,443 1,486 1,486 1,909 1,472 1,606 56 Other Asia......................................................................... 1,804 1,934 2,252 2,026 1,922 1,874 1,874 2,130r 2,443 2,130 57 Africa....................................................................................... 2,221 1,797 2,377 1,910 1,981 2,271 2,271 2,272 2,536 2,422 58 Egypt.................................................................................... 107 114 151 175 152 137 137 124 126 155 59 Morocco.............................................................................. 82 103 223 186 115 153 153 118 87 71 60 South Africa....................................................................... 860 445 370 337 421 534 534 562 668 658 61 Zaire.................................................................................... 164 144 94 96 94 111 111 108 98 98 62 Oil-exporting countries5................................................. 452 391 805 410 425 589 589 650 805 672 63 Other.................................................................................... 556 600 734 707 773 746 746 710 751 767 64 Other countries..................................................................... 988 855 1,150 1,122 1,250 1,038 1,041 1,038 1,040 1,073 65 Australia.............................................................................. 877 673 859 827 868 870 874 922 898 934 66 All other.............................................................................. 111 182 290 295 381 167 167 116 142 139 67 Nonmonetary international and regional organizations0.............................................................. 56 36 78 72 79 74 74 69 76 77 1. Includes the Bank for International Settlements. Beginning April 1978, also 5. Comprises Algeria, Gabon, Libya, and Nigeria. includes Eastern European countries not listed in line 23. 6. Excludes the Bank for International Settlements, which is included in “Other 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem­ Western Europe.” ocratic Republic, Hungary, Poland, and Romania. A Data in the two columns shown for this date differ because of changes in 3. Included in “Other Latin America and Caribbean” through March 1978. reporting coverage. Figures in the first column are comparable in coverage with 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and those for the preceding month; figures in the second column are comparable with United Arab Emirates (Trucial States). those for the following month. Note. Data for period prior to April 1978 include claims of banks’ domestic customers on foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics □ August 1981 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 1981 Type of claim 1978 1979 1980 Jan. Feb. Mar. A Apr. May June*7 1 Total..................................................................... 126,787 154,030 198,807 210,586 213,220 .........V 2 Banks’ own claims on foreigners.......................... 115,545 133,943 172,702 167,338 167,687 179,535 181,551 184,769' 186,403 195,695 3 Foreign public borrowers........................................ 10,346 15,937 20,944 20,969 20,321 20,836 21,027 21,401' 21.319 22,978 4 Own foreign offices1................................................ 41,605 47,428 65,084 64,002 64,798 74,660 74,717 76,632' 75.320 78,791 5 Unaffiliated foreign banks...................................... 40,483 40,927 50,215 46,350 45,880 46,502 48,104 48,670' 51,741 54,895 6 Deposits................................................................ 5,428 6,274 8,254 7,261 7,079 7,263 8,205 7,831' 10,125 10,829 7 Other...................................................................... 35,054 34,654 41,962 39,089 38,800 39,239 39,898 40,839' 41,616 44,066 8 All other foreigners................................................ 23,111 29,650 36,459 36,017 36,689 37,537 37,703 38,066' 38,023 39,031 9 Claims of banks’ domestic customers2................ 11,243 20,088 26,106 31,052 31,669 10 Deposits.................................................................... 480 955 885 369 852 11 Negotiable and readily transferable instruments3 5,396 13,100 15,574 19,930 20,064 12 Outstanding collections and other claims4.......... 5,366 6,032 9,648 10,752 10,753 13 Memo: Customer liability on acceptances.......... 18,021 22,714 24,452 24,452 Dollar deposits in banks abroad, reported by non­ banking business enterprises in the United States^ 13,162 21,578 23,659 28,318 30,812 30,142 30,142 33,790 34,347 1. U.S. banks: includes amounts due from own foreign branches and foreign 4. Data for March 1978 and for period prior to that are outstanding collections subsidiaries consolidated in “Consolidated Report of Condition” filed with bank only. regulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign 5. Includes demand and time deposits and negotiable and nonnegotiable certif­ banks: principally amounts due from head office or parent foreign bank, and foreign icates of deposit denominated in U.S. dollars issued by banks abroad. For descrip­ branches, agencies, or wholly owned subsidiaries of head office or parent foreign tion of changes in data reported by nonbanks, see July 1979 Bulletin, p. 550. bank. ^Data in the two columns for this month differ because of changes in reporting 2. Assets owned by customers of the reporting bank located in the United States coverage. Figures in the first column are comparable in coverage with those shown that represent claims on foreigners held by reporting banks for the account of their for the preceding month; figures in the second column are comparable with those domestic customers. shown for the following month. 3. Principally negotiable time certificates of deposit and bankers acceptances. Note. Beginning April 1978, data for banks’ own claims are given on a monthly basis, but the data for claims of banks’ own domestic customers are available on a quarterly basis only. 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 1981 Maturity; by borrower and area Dec. Dec. June Sept. Dec. Mar. A 1 Total......................................................................................................... 73,635 86,181 93,260 99,022 106,857 104,789 106,513 By borrower 2 Maturity of 1 year or less1.................................................................................... 58,345 65,152 71,938 76,231 82,665 80,855 82,636 3 Foreign public borrowers.................................................................................. 4,633 7,233 7,227 8,935 10,036 10,519 10,630 4 All other foreigners........................................................................................... 53,712 57,919 64,711 67,296 72,628 70,336 72,005 5 Maturity of over 1 year1....................................................................................... 15,289 21,030 21,322 22,791 24,193 23,934 23,877 6 Foreign public borrowers.................................................................................. 5,395 8,371 8,673 9,722 10,152 10,158 10,244 7 All other foreigners........................................................................................... 9,894 12,659 12,649 13,069 14,041 13,775 13,634 By area Maturity of 1 year or less1 8 Europe................................................................................................................... 15,169 15,235 17,215 16,940 18,762 17,306 18,261 9 Canada ................................................................................................................... 2,670 1,777 2,047 2,166 2,723 2,358 2,621 10 Latin America and Caribbean....................................................................... 20,895 24,928 24,460 28,097 32,034 30,844 31,096 11 Asia.......................................................................................................................... 17,545 21,641 26,162 26,876 26,748 28,001 28,305 12 Africa..................................................................................................................... 1,496 1,077 1,330 1,401 1,757 1,624 1,624 13 All other2............................................................................................................... 569 493 724 751 640 722 729 Maturity of over 1 year1 14 Europe................................................................................................................... 3,142 4,160 4,033 4,705 5,118 5,698 5,578 15 Canada ................................................................................................................... 1,426 1,317 1,199 1,188 1,448 1,184 1,200 16 Latin America and Caribbean....................................................................... 8,464 12,814 13,887 14,187 15,075 14,768 14,870 17 Asia.......................................................................................................................... 1,407 1,911 1,477 2,014 1,865 1,585 1,530 18 Africa..................................................................................................................... 637 655 576 567 507 531 531 19 All other2............................................................................................................... 214 173 150 130 179 168 167 1. Remaining time to maturity. 2. Includes nonmonetary international and regional organizations. A Data in the two columns for this month differ because of changes in reporting coverage. Figures in the first column are comparable in coverage with those for the preceding quarter; figures in the second column are comparable with those for the following quarter. 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 Banks1 Billions of dollars, end of period 1979 1980 1981 Area or country 1977 19782 Mar. June Sept. Dec. Mar. June Sept. Dec. Mar./7 1 240.0 266.2 263.9 275.6 294.0 303.8 308.5 328.5 338.7 350.1 363.8 2 G-10 countries and Switzerland................................................................ 116.4 124.7 119.0 125.2 135.7 138.4 141.2 154.2 158.7 161.5 165.5 3 Belgium-Luxembourg................................................................................ 8.4 9.0 9.4 9.7 10.7 11.1 10.8 13.1 13.5 12.9 13.4 4 France ............................................................................................................. 11.0 12.2 11.7 12.7 12.0 11.7 12.0 14.0 13.9 14.0 14.3 5 Germany........................................................................................................ 9.6 11.3 10.5 10.8 12.8 12.2 11.4 12.7 12.9 11.5 12.3 6 Italy ................................................................................................................. 6.5 6.7 5.7 6.1 6.1 6.4 6.2 6.9 7.2 8.2 7.6 7 Netherlands.................................................................................................. 3.5 4.4 3.9 4.0 4.7 4.8 4.3 4.5 4.4 4.4 4.5 8 Sweden ........................................................................................................... 1.9 2.1 2.0 2.0 2.3 2.4 2.4 2.7 2.8 2.9 3.2 9 Switzerland.................................................................................................... 3.6 5.3 4.5 4.7 5.0 4.7 4.3 3.3 3.4 4.0 4.0 10 United Kingdom......................................................................................... 46.5 47.3 46.4 50.3 53.7 56.4 57.6 64.3 66.6 68.7 68.2 11 Canada ........................................................................................................... 6.4 6.0 5.9 5.5 6.0 6.3 6.9 7.2 7.7 8.4 8.5 12 Japan............................................................................................................... 18.8 20.6 19.0 19.5 22.3 22.4 25.4 25.5 26.1 26.5 29.4 13 Other developed countries......................................................................... 18.6 19.4 18.2 18.2 19.7 19.9 18.8 20.3 20.6 21.1 23.0 14 Austria........................................................................................................... 1.3 1.7 1.7 1.8 2.0 2.0 1.7 1.8 1.8 1.9 1.8 15 Denmark......................................................................................................... 1.6 2.0 2.0 1.9 2.0 2.2 2.1 2.2 2.2 2.4 16 Finland........................................................................................................... 1.2 1.2 1.2 1.1 1.2 1.2 1.1 1.3 1.2 1.4 1.3 17 Greece............................................................................................................. 2.2 2.3 2.3 2.2 2.3 2.4 2.4 2.6 2.8 2.8 18 Norway........................................................................................................... 1.9 2.1 2.1 2.1 2.3 2.3 2.4 2.4 2.6 2.8 19 Portugal......................................................................................................... .6 .6 .6 .5 .7 .7 .6 .7 .6 .6 20 Spain............................................................................................................... 3.6 3.5 3.0 3.0 3.3 3.5 3.5 4.2 4.0 5.1 21 Turkey............................................................................................................. 1.5 1.5 1.4 1.4 1.4 1.4 1.4 L4 1.3 1.5 1.5 22 Other Western Europe............................................................................ .9 1.3 1.1 .9 1.5 1.4 1.4 1.7 1.7 1.8 23 South Africa.................................................................................................. 2.4 2.0 1.7 1.8 1.7 1.3 1.1 1.5 1.2 1.1 1.5 24 Australia......................................................................................................... 1.4 1.4 1.3 1.4 1.3 1.3 1.2 1.2 1.2 1.3 1.4 25 OPEC countries3.............................................................................................. 17.6 22.7 22.6 22.7 23.4 22.9 21.8 20.9 21.3 22.8 21.4 26 Ecuador ......................................................................................................... 1.1 1.6 1.5 1.6 1.6 1.7 1.8 1.8 1.9 2.1 2.0 27 Venezuela...................................................................................................... 5.5 7.2 7.2 7.6 7.9 8.7 7.9 7.9 8.5 9.1 8.3 28 Indonesia...................................................................................................... 2.2 2.0 1.9 1.9 1.9 1.9 1.9 1.9 1.9 1.8 2.0 29 Middle East countries.............................................................................. 6.9 9.5 9.4 9.0 9.2 8.0 7.8 6.9 6.6 6.9 6.4 30 African countries......................................................................................... 1.9 2.5 2.6 2.6 2.8 2.6 2.5 2.5 2.4 2.8 2.6 31 Non-OPEC developing countries.............................................................. 48.7 52.6 53.9 56.0 58.9 62.9 63.7 67.4 72.8 76.9 80.5 Latin America 32 Argentina...................................................................................................... 2.9 3.0 3.1 3.5 4.1 5.0 5.5 5.6 7.6 7.9 8.5 33 Brazil............................................................................................................... 12.7 14.9 14.9 15.1 15.1 15.2 15.0 15.3 15.8 16.2 16.7 34 Chile............................................................................................................... .9 1.6 1.7 1.8 2.2 2.5 2.5 2.7 3.2 3.5 4.0 35 Colombia....................................................................................................... 1.3 1.4 1.5 1.5 1.7 2.2 2.1 2.2 2.4 2.6 2.4 36 Mexico........................................................................................................... 11.9 10.8 10.9 10.7 11.4 12.0 12.1 13.6 14.4 15.9 17.0 37 1.9 1.7 1.6 1.4 1.4 1.5 1.3 1.4 1.5 1.8 1.8 38 Other Latin America................................................................................ 2.6 3.6 3.5 3.3 3.6 3.7 3.6 3.6 3.9 3.9 4.8 Asia China 39 Mainland.................................................................................................... .0 .0 .1 .1 .1 .1 .1 .1 .1 .2 .2 40 Taiwan...................................................................................................... 3.1 2.9 3.1 3.3 3.5 3.4 3.6 3.8 4.1 4.2 4.4 41 India............................................................................................................... .3 .2 .2 .2 .2 .2 .2 .2 .2 .3 .3 42 Israel ............................................................................................................... .9 1.0 1.0 .9 1.0 1.3 .9 1.2 1.1 1.5 1.3 43 Korea (South)............................................................................................. 3.9 3.9 4.2 5.0 5.3 5.4 6.4 7.1 7.3 7.1 7.7 44 Malaysia4...................................................................................................... .7 .6 .6 .7 .7 .9 .8 .9 .9 1.0 1.0 45 Philippines.................................................................................................... 2.5 2.8 3.2 3.7 3.7 4.2 4.4 4.6 4.8 5.0 4.7 46 Thailand......................................................................................................... 1.1 1.2 1.2 1.4 1.6 1.5 1.4 1.5 1.5 1.4 1.4 47 Other Asia.................................................................................................... .4 .2 .4 .4 .4 .5 .5 .5 .5 .6 .4 Africa 48 Egypt............................................................................................................... .3 .4 .5 .7 .6 .6 .7 .7 .7 .8 .8 49 Morocco......................................................................................................... .5 .6 .6 .5 .5 .6 .5 .5 .6 .7 .6 50 .3 .2 .2 .2 .2 .2 .2 .2 .2 .2 .4 51 Other Africa5................................................................................................ .7 1.4 1.4 1.5 1.6 1.7 1.7 1.8 2.0 2.0 2.1 52 Eastern Europe................................................................................................ 6.3 6.9 6.7 6.7 7.2 7.3 7.3 7.2 7.3 7.5 8.0 53 U.S.S.R........................................................................................................... 1.6 1.3 1.1 .9 .9 .7 .6 .5 .5 .4 .4 54 Yugoslavia.................................................................................................... 1.1 1.5 1.6 1.7 1.8 1.8 1.9 2.1 2.1 2.3 2.4 55 3.7 4.1 4.0 4.1 4.6 4.8 4.9 4.5 4.7 4.7 5.1 56 Offshore banking centers.............................................................................. 26.1 31.0 33.7 37.0 38.6 40.4 42.6 44.2 44.5 46.5 50.7 57 Bahamas......................................................................................................... 9.9 10.4 12.3 14.4 13.0 13.7 13.9 13.7 13.1 13.3 13.6 58 Bermuda......................................................................................................... .6 .7 .6 .7 .7 .8 .6 .6 .6 .6 .7 59 Cayman Islands and other British West Indies............................... 3.7 7.4 7.1 7.4 9.5 9.4 11.3 9.8 10.1 10.6 11.3 60 Netherlands Antilles.................................................................................. .7 .8 .8 1.0 1.1 1.2 .9 1.2 1.3 2.1 2.1 61 Panama6......................................................................................................... 3.1 3.0 3.5 3.8 3.4 4.3 4.9 5.6 5.6 5.4 6.4 62 Lebanon ......................................................................................................... .2 .1 .1 .1 .2 .2 .2 .2 .2 .2 .2 63 Hong Kong.................................................................................................... 3.7 4.2 4.8 4.9 5.5 6.0 5.7 6.9 7.5 8.1 8.4 64 Singapore...................................................................................................... 3.7 3.9 4.2 4.2 4.9 4.5 4.7 5.9 5.6 5.9 7.2 65 Others7........................................................................................................... .5 .5 .4 .4 .4 .4 .4 .4 .4 .3 .9 66 Miscellaneous and unallocated8................................................................ 5.3 9.1 9.5 9.9 10.6 11.7 13.1 14.3 13.7 13.9 14.8 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) as foreign branch of the same banking institution. The data in this table combine 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 for FinR tAhiSs tEabRle include only banks’ own claims payable in dollars. For earlier dates http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics □ August 1981 3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1981 1980 1981 Country or area 1979 1980 Jan- June? Dec. Jan. Feb. Mar. Apr. May June? Holdings (end of period)1 1 Estimated total2....................................... 51,344 57,418 57,418 58,453 60,277 61,760 62,124 62,837 64,101 2 Foreign countries2.................................... 45,915 52,831 52,831 53,919 55,655 56,840 57,352 58,039 59,158 3 Europe2.................................................... 24,824 24,337 24,337 25,176 25,466 25,235 24,883 24,511 24,867 4 Belgium-Luxembourg.......................... 60 77 77 80 88 106 123 131 173 5 Germany2............................................. 14,056 12,335 12,335 12,791 12,915 12,340 11,925 11,949 12,594 6 Netherlands......................................... 1,466 1,884 1,884 1,954 1,944 1,965 1,950 1,813 1,781 7 Sweden ................................................. 647 595 595 555 535 566 567 572 582 8 Switzerland2......................................... 1,868 1,485 1,485 1,561 1,524 1,527 1,526 1,535 1,600 9 United Kingdom.................................. 6,236 7,183 7,183 7,438 7,745 7,892 7,862 7,274 6,834 10 Other Western Europe....................... 491 111 111 796 714 839 930 1,236 1,304 11 Eastern Europe.................................... 0 0 0 0 0 0 0 0 0 12 Canada .................................................... 232 449 449 458 490 478 464 486 484 13 Latin America and Caribbean............... 466 999 999 998 1,074 1,151 939 849 666 14 Venezuela............................................. 103 292 292 292 292 292 292 287 287 15 Other Latin America and Caribbean . 200 285 285 281 341 339 389 430 217 16 Netherlands Antilles............................ 163 421 421 425 441 519 258 132 162 17 Asia.......................................................... 19,805 26,112 26,112 26,303 27,467 28,827 29,920 31,047 31,997 18 Japan.................................................... 11,175 9,479 9,479 9,519 9,543 9,543 9,566 9,606 9,778 19 Africa...................................................... 591 920 920 970 1,139 1,140 1,140 1,140 1,140 20 All other................................................... -3 14 14 14 18 9 7 6 3 21 Nonmonetary international and regional organizations.................................... 5,429 4,587 4,587 4,534 4,622 4,920 4,772 4,798 4,943 22 International....................................... 5,388 4,548 4,548 4,505 4,586 4,878 4,759 4,791 4,936 23 Latin American regional..................... 37 36 36 26 36 36 6 1 1 Transactions (net purchases, or sales (-) during period) 24 Total2........................................................................... 6,397 6,075 6,682 196 1,035 1,827 1,480 364 713 1,264 25 Foreign countries2...................................................... 6,099 6,916 6,327 -41 1,088 1,736 1,185 512 686 1,119 26 Official institutions................................................. 1,697 3,840 5,149 -336 865 1,404 1,084 495 321 980 27 Other foreign2........................................................ 4,403 3,076 1,177 295 223 332 101 17 365 139 28 Nonmonetary international and regional organizations...................................................... 301 -843 356 237 -53 91 295 -148 26 145 Memo: Oil-exporting countries 29 Middle East3.............................................................. -1,014 7,672 5,230 358 300 1,139 1,322 1,062 841 565 30 Africa4......................................................................... -100 328 220 205 51 169 0 0 0 0 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, Gabop, Libya, and Nigeria. 3.22 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1981 Assets 1978 1979 1980 Jan. Feb. Mar. Apr. May June July? 1 Deposits..................................................................... 367 429 411 573 422 474 475 346 338 285 Assets held in custody 2 U.S. Treasury securities1........................................... 117,126 95,075 102,417 104,490 106,389 111,859 113,746 109,742 107,884 105,064 3 Earmarked gold2........................................................ 15,463 15,169 14,965 14,893 14,892 14,883 14,886 14,875 14,871 14,854 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 1981 1980 1981 Transactions, and area or country 1979 1980 Jan.- Dec. Jan. Feb. Mar. Apr. May JuneP June p U.S. corporate securities Stocks 1 Foreign purchases...................................................... 22,781 40,320 22,561 4,345 3,422 2,718 3,948 4,041 4,083 4,350 2 Foreign sales.............................................................. 21,123 34,962 18,018 3,701 2,798 2,312 3,313 3,323 2,858 3,413 3 Net purchases, or sales (—)....................................... 1,658 5,358 4,543 644 624 406 634 718 1,225 936 4 Foreign countries........................................................ 1,642 5,340 4,499 623 612 403 626 710 1,215 931 5 Europe....................................................................... 217 3,069 2,963 254 438 257 605 419 766 477 6 France..................................................................... 122 482 773 60 62 41 110 126 393 42 7 Germany.................................................................. -221 186 83 8 24 18 31 15 -17 11 8 Netherlands............................................................ -71 -328 112 -17 43 2 12 -2 31 27 9 Switzerland.............................................................. -519 308 377 -88 105 -24 138 75 84 0 10 United Kingdom..................................................... 964 2,503 1,469 300 178 220 308 197 215 351 11 Canada ....................................................................... 552 865 697 247 26 91 103 230 143 104 12 Latin America and Caribbean.................................. -19 148 201 -8 101 -22 14 -26 9 126 13 Middle East1.............................................................. 688 1,206 389 177 63 74 -95 91 223 33 14 Other Asia.................................................................. 211 16 251 -49 -14 -2 0 3 77 187 15 Africa......................................................................... -14 -1 7 -2 2 0 -1 -1 1 4 16 Other countries.......................................................... 7 38 -9 2 -5 7 0 -5 -4 -1 17 Nonmonetary international and regional organizations...................................................... 17 18 44 22 12 2 8 8 10 5 Bonds2 18 Foreign purchases...................................................... 8,835 15,425 9,360 946 1,549 1,402 2,035 1,549 894 1,931 19 Foreign sales.............................................................. 7,602 9,976 5,819 826 817 863 1,239 774 669 1,457 20 Net purchases, or sales (-)....................................... 1,233 5,449 3,542 121 733 539 769 775 225 474 21 Foreign countries........................................................ 1,330 5,514 3,489 107 706 552 797 733 243 459 22 Europe....................................................................... 626 1,576 1,162 -26 214 311 132 328 -3 180 23 France..................................................................... 11 129 6 12 4 -42 9 8 17 10 24 Germany.................................................................. 58 213 460 22 49 112 97 23 28 152 25 Netherlands............................................................ -202 -65 49 17 6 12 14 13 4 0 26 Switzerland.............................................................. -118 54 109 14 22 12 4 17 34 20 27 United Kingdom..................................................... 814 1,257 456 -113 124 207 -22 231 -87 3 28 Canada....................................................................... 80 135 47 -7 7 -2 19 12 18 -6 29 Latin America and Caribbean.................................. 109 185 94 -5 -3 26 28 22 9 12 30 Middle East1.............................................................. 424 3,486 2,312 113 492 201 723 362 192 343 31 Other Asia.................................................................. 88 117 -124 32 -1 17 -105 9 27 -71 32 Africa......................................................................... 1 5 0 0 0 0 0 0 0 0 33 Other countries.......................................................... 1 10 -3 0 -4 0 0 0 0 1 34 Nonmonetary international and regional organizations...................................................... -96 -65 53 14 27 -13 -1 42 -18 16 Foreign securities 35 Stocks, net purchases, or sales (-).......................... -786 -2,084 -317 -68 35 13 -187 -90 32 -119 36 Foreign purchases................................................... 4,615 7,885 4,758 721 696 709 763 852 852 887 37 Foreign sales.......................................................... 5,401 9,968 5,075 788 661 697 950 941 820 1,006 38 Bonds, net purchases, or sales (-).......................... -3,855 -846 -1,620 274 -237 29 -141 -632 -192 -447 39 Foreign purchases................................................... 12,672 17,069 8,080 1,786 1,142 1,296 1,686 1,154 1,292 1,509 40 Foreign sales.......................................................... 16,527 17,915 9,700 1,512 1,379 1,267 1,827 1,786 1,485 1,956 41 Net purchases, or sales (—), of stocks and bonds ... -4,641 -2,929 -1,937 206 -202 42 -328 -723 -161 -566 42 Foreign countries........................................................ -3,891 -3,806 -2,034 -177 -261 24 -340 -732 -160 -566 43 Europe....................................................................... -1,646 -957 -467 -86 -116 80 -161 -300 76 -46 44 Canada....................................................................... -2,601 -1,948 -1,191 24 -4 76 -101 -271 -385 -507 45 Latin America and Caribbean.................................. 347 126 93 -11 51 52 -68 119 -51 -10 46 Asia............................................................................. 44 -1,131 -469 -84 -177 -169 9 -234 174 -72 47 Africa......................................................................... -61 24 -51 -13 -10 -8 -17 -7 -3 -6 48 Other countries.......................................................... 25 80 51 -7 -4 -7 -2 -39 29 75 49 Nonmonetary international and regional organizations....................................................... -750 876 97 383 59 17 12 9 0 0 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 □ August 1981 3.24 LIABILITIES TO UN AFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1979 1980 1981 Type, and area or country 1978 1979 Dec. Mar. June Sept. Dec. Mar.? 1 14,948 17,062 17,062 17,476 18,643 18,634 21,229' 20,997 2Payable in dollars.................................................................................. 11,513 13,984 13,984 14,470 15,203 15,337 17,520' 17,502 3Payable in foreign currencies2.............................................................. 3,435 3,078 3,078 3,006 3,440 3,296 3,709' 3,495 By type 4Financial liabilities................................................................................. 6,353 7,366 7,366 7,832 8,410 8,293 11,015' 11,206 5 Payable in dollars............................................................................... 3,838 5,096 5,096 5,591 5,791 5,818 8,243' 8,600 6 Payable in foreign currencies............................................................ 2,515 2,270 2,270 2,242 2,619 2,475 2,772' 2,606 7Commercial liabilities........................................................................... 8,595 9,696 9,696 9,693 10,233 10,341 10,214' 9,791 8 Trade payables.................................................................................. 4,008 4,424 4,424 4,190 4,297 4,381 4,400' 4,442 9 Advance receipts and other liabilities............................................... 4,587 5,272 5,272 5,454 5,936 5,960 5,814' 5,349 10 Payable in dollars............................................................................... 7,674 8,888 8,888 8,879 9,412 9,520 9,277' 8,903 11 Payable in foreign currencies............................................................ 921 808 808 764 821 821 936' 888 By area or country Financial liabilities 12 Europe............................................................................................... 3,958 4,642 4,642 4,860 5,470 5,314 6,303' 5,995 13 Belgium-Luxembourg................................................................... 289 345 345 360 422 417 484' 553 14 France.............................................................................................. 173 175 175 193 347 339 327 324 15 Germany........................................................................................ 366 497 497 520 657 557 582 496 16 Netherlands.................................................................................... 390 828 828 795 797 780 663' 544 17 Switzerland.................................................................................... 248 170 170 174 238 224 354 315 18 United Kingdom............................................................................. 2,159 2,449 2,449 2,647 2,841 2,867 3,758' 3,650 19 Canada............................................................................................... 244 439 439 380 530 508 00 982 20 Latin America and Caribbean.......................................................... 1,357 1,483 1,483 1,764 1,633 1,732 3,100' 3,342 21 Bahamas.......................................................................................... 478 375 375 459 434 412 964' 1,148 22 Bermuda........................................................................................ 4 81 81 83 2 1 1 1 23 Brazil.............................................................................................. 10 18 18 22 25 20 23 19 24 British West Indies......................................................................... 194 514 514 694 700 703 1,452' 1,389 25 Mexico............................................................................................ 102 121 121 101 101 108 99' 97 26 Venezuela...................................................................................... 49 72 72 70 72 74 81 85 27 Asia..................................................................................................... 784 793 793 807 752 707 723' 858 28 Japan ............................................................................................. 717 726 726 740 683 618 644 744 29 Middle East oil-exporting countries3........................................... 32 31 31 26 31 37 38 51 30 Africa................................................................................................. 5 4 4 11 10 11 11 6 31 Oil-exporting countries4................................................................ 2 1 1 1 1 1 1 1 32 All other5............................................................................................ 5 4 4 10 15 21 15 23 Commercial liabilities 33 Europe............................................................................................... 3,054 3,639 3,639 3,716 4,038 4,079 4,067' 3,669 34 Belgium-Luxembourg................................................................... 97 137 137 117 132 109 90' 82 35 France............................................................................................. 321 467 467 503 485 501 582 560 36 Germany........................................................................................ 529 548 548 545 727 693 679' 639 37 Netherlands.................................................................................... 246 227 227 288 245 276 219 246 38 Switzerland.................................................................................... 302 310 310 382 462 452 493 385 39 United Kingdom............................................................................. 824 1,077 1,077 1,012 1,133 1,045 1,011' 871 40 Canada............................................................................................... 667 868 868 720 591 590 785' 725 41 Latin America.................................................................................... 997 1,323 1,323 1,253 1,271 1,361 1,244 1,280 42 Bahamas.......................................................................................... 25 69 69 4 26 8 8 1 43 Bermuda........................................................................................ 97 32 32 47 107 114 73 111 44 Brazil............................................................................................. 74 203 203 228 151 156 111 82 45 British West Indies......................................................................... 53 21 21 20 37 12 35 16 46 Mexico............................................................................................ 106 257 257 235 272 324 326 419 47 Venezuela...................................................................................... 303 301 301 211 210 293 307 253 48 2,931 2,905 2,905 2,950 3,091 2,909 2,848 2,853 49 Japan ............................................................................................. 448 494 494 581 418 502 645 621 50 Middle East oil-exporting countries3........................................... 1,523 1,017 1,017 901 1,030 944 894 947 51 Africa................................................................................................. 743 728 728 742 875 1,006 814 824 52 Oil-exporting countries4................................................................ 312 384 384 382 498 633 514 515 53 All other5............................................................................................ 203 233 233 263 367 396 456 440 1. For a description of the changes in the International Statistics tables, see July 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and 1979 Bulletin, p. 550. United Arab Emirates (Trucial States). 2. Before December 1978, foreign currency data include only liabilities denom- 4. Comprises Algeria, Gabon, Libya, and Nigeria. inated in foreign currencies with an original maturity of less than one year. 5. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A65 3.25 CLAIMS ON UN AFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1979 1980 1981 Type, and area or country 1978 1979 Dec. Mar. June Sept. Dec. Mar.* 1 Total....................................................................................................... 27,892 31,023 31,023 32,077 32,024 31,579 33,869r 37,061 2 Payable in dollars.................................................................................. 24,905 27,850 27,850 29,069 28,962 28,322 31,030' 34,139 3 Payable in foreign currencies2.............................................................. 2,988 3,173 3,173 3,008 3,062 3,257 2,838r 2,921 By type 4 Financial claims.................................................................................... 16,570 18,222 18,222 19,332 18,630 18,285 19,281' 21,760 5 Deposits............................................................................................. 11,111 12,579 12,579 13,657 12,786 12,218 13,455' 15,980 6 Payable in dollars........................................................................... 10,043 11,663 11,663 12,681 11,907 11,056 12,722' 15,198 7 Payable in foreign currencies........................................................ 1,068 916 916 977 879 1,162 733' 782 8 Other financial claims....................................................................... 5,459 5,643 5,643 5,675 5,844 6,067 5,826' 5,780 9 Payable in dollars........................................................................... 3,874 3,803 3,803 4,055 4,103 4,399 4,137' 4,119 10 Payable in foreign currencies........................................................ 1,584 1,840 1,840 1,620 1,740 1,668 1,689' 1,662 11 Commercial claims................................................................................ 11,323 12,801 12,801 12,745 13,394 13,294 14,588' 15,301 12 Trade receivables............................................................................... 10,764 12,112 12,112 12,095 12,685 12,605 13,871' 14,506 13 Advance payments and other claims............................................... 559 688 688 649 710 688 717' 795 14 Payable in dollars............................................................................... 10,988 12,384 12,384 12,333 12,952 12,867 14,171' 14,823 15 Payable in foreign currencies............................................................ 335 416 416 411 443 427 416' 478 By area or country Financial claims 16 Europe............................................................................................... 5,215 6,146 6,146 5,843 5,843 5,605 6,021' 6,047 17 Belgium-Luxembourg................................................................... 48 32 32 21 23 17 195' 159 18 France............................................................................................. 178 177 177 290 307 409 340' 411 19 Germany........................................................................................ 510 409 409 300 190 168 230' 213 20 Netherlands.................................................................................... 103 53 53 39 37 30 32 42 21 Switzerland.................................................................................... 98 73 73 89 96 41 59' 90 22 United Kingdom............................................................................. 4,021 5,081 5,081 4,790 4,863 4,545 4,889' 4,856 23 Canada............................................................................................... 4,484 4,813 4,813 4,885 4,783 4,804 4,785' 6,281 24 Latin America and Caribbean.......................................................... 5,714 6,261 6,261 7,583 6,924 6,757 7,496' 8,485 25 Bahamas.......................................................................................... 3,001 2,741 2,741 3,516 3,080 2,831 3,333' 3,919 26 Bermuda........................................................................................ 80 30 30 34 25 65 135 13 27 Brazil............................................................................................. 151 163 163 128 120 116 96 22 28 British West Indies......................................................................... 1,291 2,001 2,001 2,591 2,393 2,301 2,586' 3,321 29 Mexico............................................................................................ 163 158 158 169 178 192 208 201 30 Venezuela...................................................................................... 157 143 143 134 139 128 137' 131 31 Asia..................................................................................................... 920 706 706 713 758 791 710' 696 32 Japan ............................................................................................. 305 199 199 226 253 269 177' 191 33 Middle East oil-exporting countries3........................................... 18 16 16 18 16 20 20' 17 34 Africa................................................................................................. 181 253 253 265 256 260 238' 214 35 Oil-exporting countries4................................................................ 10 49 49 40 35 29 26 27 36 All other5............................................................................................ 55 44 44 43 65 68 32 36 Commercial claims 37 Europe............................................................................................... 3,980 4,897 4,897 4,759 4,830 4,655 5,487' 5,785 38 Belgium-Luxembourg................................................................... 144 202 202 208 258 230 232 275 39 France............................................................................................. 609 726 726 702 662 707 1,128' 906 40 Germany........................................................................................ 398 589 589 515 510 569 590' 594 41 Netherlands.................................................................................... 267 298 298 347 297 289 318 349 42 Switzerland.................................................................................... 198 269 269 349 429 333 351' 460 43 United Kingdom............................................................................. 824 901 901 926 903 988 930' 1,192 44 Canada............................................................................................... 1,094 846 846 861 896 929 897' 1,027 45 Latin America and Caribbean.......................................................... 2,544 2,850 2,850 2,986 3,277 3,375 3,790' 3,807 46 Bahamas.......................................................................................... 109 21 21 19 19 53 21 15 47 Bermuda........................................................................................ 215 197 197 135 133 81 148 170 48 Brazil............................................................................................. 628 645 645 654 695 710 861' 797 49 British West Indies......................................................................... 9 16 16 11 9 17 34 15 50 Mexico............................................................................................ 505 698 698 832 921 981 1,090' 1,049 51 Venezuela...................................................................................... 291 343 343 350 395 388 407' 435 52 Asia..................................................................................................... 3,080 3,413 3,413 3,395 3,576 3,395 3,447' 3,684 53 Japan ............................................................................................. 976 1,140 1,140 1,213 1,143 1,094 990' 1,238 54 Middle East oil-exporting countries3........................................... 716 766 766 719 830 837 821 915 55 Africa................................................................................................. 447 554 554 517 566 669 651 675 56 Oil-exporting countries4............................................................... 136 133 133 114 115 135 151 143 57 All other5............................................................................................ 178 240 240 225 249 270 316 321 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 □ August 1981 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on July 31, 1981 Rate on July 31, 1981 Rate on July 31, 1981 Country Country Country Per­ Month Per­ Month Per­ Month cent effective cent effective cent effective Argentina.......................... 311.15 June 1981 France1 .............................. ie.5 July 1981 Sweden .............................. 12.0 Jan. 1981 Austria.............................. 6.75 Mar. 1980 Germany, Fed. Rep. of... 7.5 May 1980 Switzerland........................ 5.0 May 1981 Belgium.............................. 13.0 May 1981 Italy................................... 19.0 Mar. 1981 United Kingdom............... 12.0 Mar. 1981 Brazil................................. 40.0 June 1980 Japan................................. 6.25 Mar. 1981 Venezuela.......................... 10.0 July 1980 Canada .............................. 20.54 July 1981 Netherlands...................... 9.0 Mar. 1981 Denmark............................ 11.00 Oct. 1980 Norway.............................. 9.0 Nov. 1979 1. As from February 1981, the rate at which the Bank of France discounts government securities for commercial banks or brokers. For countries with Treasury bills for 7 to 10 days. more than one rate applicable to such discounts or advances, the rate Note. Rates shown are mainly those at which the central bank either shown is the one at which it is understood the central bank transacts the discounts or makes advances against eligible commercial paper and/or largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1981 Country, or type 1978 1979 1980 Jan. Feb. Mar. Apr. May June July 1 Eurodollars............................................... 8.74 11.96 14.00 18.07 17.18 15.36 15.95 19.06 17.86 18.50 2 United Kingdom..................................... 9.18 13.60 16.59 14.20 13.12 12.58 12.26 12.34 12.61 13.63 3 Canada .................................................... 8.52 11.91 13.12 16.98 17.28 16.85 17.35 18.96 19.28 19.67 4 Germany.................................................. 3.67 6.64 9.45 9.41 10.74 13.44 13.12 13.06 13.05 12.92 5 Switzerland............................................... 0.74 2.04 5.79 5.68 7.09 8.33 8.67 9.87 10.02 9.76 6 Netherlands............................................ 6.53 9.33 10.60 9.36 9.78 10.61 10.41 11.76 11.81 12.38 7 France ...................................................... 8.10 9.44 12.18 11.38 11.87 12.56 13.00 15.75 18.84 17.34 8 Italy.......................................................... 11.40 11.85 17.50 17.34 17.50 18.22 19.92 19.92 20.49 20.78 9 Belgium.................................................... 7.14 10.48 14.06 12.41 12.52 13.93 17.16 16.90 15.58 16.16 10 Japan........................................................ 4.75 6.10 11.45 9.00 8.52 7.87 6.83 7.22 7.41 7.16 Note. Rates are for 3-month interbank loans except for the following: Canada, finance company paper; Belgium, 3-month Treasury bills; and Japan, Gensaki rate. 3.28 FOREIGN EXCHANGE RATES Cents per unit of foreign currency 1981 Country/currency 1978 1979 1980 Jan. Feb. Mar. Apr. May June July 1 Australia/dollar............................. 114.41 111.77 114.00 118.19 116.26 116.29 115.32 114.06 114.07 114.27 2 Austria/schilling............................. 6.8958 7.4799 7.7349 7.0297 6.6033 6.6959 6.5355 6.1722 5.9502 5.8225 3 Belgium/franc................................. 3.1809 3.4098 3.4247 3.0962 2.8972 2.8966 2.8220 2.6742 2.5734 2.5027 4 Canada/dollar................................. 87.729 85.386 85.530 83.974 83.442 83.936 83.966 83.265 83.050 82.601 5 Denmark/krone............................. 18.156 19.010 17.766 16.181 15.152 15.109 14.683 13.864 13.384 13.074 6 Finland/markka............................. 24.337 27.732 26.892 25.752 24.656 24.612 23.059 23.207 22.511 22.045 7 France/franc................................... 22.218 23.504 23.694 21.539 20.142 20.147 19.548 18.225 17.679 17.253 8 Germany/deutsche mark........... 49.867 54.561 55.089 49.771 46.757 47.498 46.219 43.601 42.054 40.977 9 India/rupee...................................... 12.207 12.265 12.686 12.567 12.164 12.131 12.060 11.900 11.688 11.229 10 Ireland/pound............................... 191.84 204.65 205.77 185.54 173.31 173.25 168.46 159.49 153.61 149.40 11 Italy/lira...................................... .11782 .12035 .11694 .10478 .09807 .09699 .09280 .08766 .08436 .08233 12 Japan/yen........................................ .47981 .45834 .44311 .49419 .48615 .47897 .46520 .45332 .44621 .43055 13 Malaysia/ringgit............................. 43.210 45.720 45.967 44.994 44.196 43.830 43.182 42.752 42.720 42.519 14 Mexico/peso................................... 4.3896 4.3826 4.3535 4.2792 4.2544 4.2238 4.1880 4.1500 4.1066 4.0650 15 Netherlands/guilder...................... 46.284 49.843 50.369 45.810 42.870 42.912 41.660 39.224 37.816 36.833 16 New Zealand/dollar.................. 103.64 102.23 97.337 96.137 93.414 91.999 90.273 88.150 85.823 83.771 17 Norway/krone............................ 19.079 19.747 20.261 19.087 18.485 18.540 18.271 17.652 16.907 16.387 18 Portugal/escudo............................. 2.2782 2.0437 1.9980 1.8591 1.7722 1.7621 1.7178 1.6449 1.5899 1.5429 19 South Africa/rand........................ 115.01 118.72 128.54 133.69 129.27 126.50 123.32 119.35 115.18 108.46 20 Spain/peseta................................... 1.3073 1.4896 1.3958 1.2409 1.1686 1.1672 1.1395 1.0953 1.0565 1.0248 21 Sri Lanka/rupee.......................... 6.3834 6.4226 6.1947 5.9525 5.5975 5.5527 5.4185 5.4422 5.3970 5.3491 22 Sweden/krona............................... 22.139 23.323 23.647 22.490 21.734 21.704 21.309 20.450 19.802 19.293 23 Switzerland/franc........................... 56.283 60.121 59.697 54.907 51.502 52.043 50.664 48.400 48.226 47.667 24 United Kingdom/pound............. 191.84 212.24 232.58 240.29 229.41 223.19 217.53 208.84 197.38 187.37 Memo: 25 United States/dollar1 .................. 92.39 88.09 87.39 91.38 96.02 96.22 98.80 103.59 106.86 109.87 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 Digitized for FreRviAseSd EasR of August 1978. For description and back data, see “Index of Note. Averages of certified noon buying rates in New York for cable transfers. 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 corporat 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 obligations of the Treasury. “State and local government” figure, or (3) an outflow. also includes municipalities, special districts, and other politi­ “U.S. government securities” may include guaranteed cal subdivisions. issues 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 rounding. Statistical Releases List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases .......................................................... December 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 Commercial bank assets and liabilities, September 30, 1980 .............................................................. February 1981 A68 Commercial bank assets and liabilities, December 31, 1980 ................................................................ April 1981 All Assets and liabilities of U.S. branches and agencies of foreign banks, March 31, 1981 ................ July 1981 A78 Commercial bank assets and liabilities, March 31, 1981 ...................................................................... July 1981 All Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Federal Reserve Board of Governors Paul A. Volcker, Chairman Henry C. W allich Frederick H. Schultz, Vice Chairman J. C harles Partee Office of Board Members Office of Staff Director for Monetar y and Financial Polic y Joseph R. Coyne, Assistant to the Board Donald J. Winn, Assistant to the Board Stephen H. Axilrod, Staff Director Anthony F. Cole, Special Assistant to the Board Edward C. Ettin, Deputy Staff Director William R. Maloni, Special Assistant to the Board Murray Altmann, Assistant to the Board Frank O’Brien, Jr., Special Assistant to the Board Peter M. Keir, Assistant to the Board Joseph S. Sims, Special Assistant to the Board Stanley J. Sigel, Assistant to the Board James L. Stull, Manager, Operations Review Program Normand R. V. Bernard, Special Assistant to the Board Legal Division Division of Research and Statistics Michael Bradfield, General Counsel James L. Kichline, Director Robert E. Mannion, Deputy General Counsel Joseph S. Zeisel, Deputy Director J. Virgil Mattingly, Jr., Associate General Counsel Michael J. Prell, Associate Director Gilbert T. Schwartz, Associate General Counsel Robert A. Eisenbeis, Senior Deputy Associate Director Michael E. Bleier, Assistant General Counsel Jared J. Enzler, Senior Deputy Associate Director Maryellen A. Brown, Assistant to the General Counsel Eleanor J. Stockwell, Senior Deputy Associate Director Donald L. Kohn, Deputy Associate Director J. Cortland G. Peret, Deputy Associate Director Office of the Secretary Helmut F. Wendel, Deputy Associate Director Martha Bethea, Assistant Director William W. Wiles, Secretary Joe M. Cleaver, Assistant Director Barbara R. Lowrey, Assistant Secretary Robert M. Fisher, Assistant Director James McAfee, Assistant Secretary David E. Lindsey, Assistant Director *D. Michael Manies, Assistant Secretary Lawrence Slifman, Assistant Director Frederick M. Struble, Assistant Director Stephen P. Taylor, Assistant Director Division of Consumer Levon H. Garabedian, Assistant Director (Administration) and Community Affairs Janet O. Hart, Director Division of International Finance Griffith L. Garwood, Deputy Director Jerauld C. Kluckman, Associate Director Edwin M. Truman, Director Glenn E. Loney, Assistant Director Robert F. Gemmill, Associate Director Dolores S. Smith, Assistant Director Charles J. Siegman, Associate Director Larry J. Promisel, Senior Deputy Associate Director Dale W. Henderson, Deputy Associate Director Division of Banking Samuel Pizer, Staff Adviser Supervision and Regulation Ralph W. Smith, Jr., Assistant Director John E. Ryan, Director Frederick R. Dahl, Associate Director William Taylor, Associate Director Jack M. Egertson, Assistant Director Robert A. Jacobsen, Assistant Director Don E. Kline, Assistant Director Robert S. Plotkin, Assistant Director Thomas A. Sidman, Assistant Director Samuel H. Talley, Assistant Director Laura M. Homer, Securities Credit Officer Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A69 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 ITony J. Salvaggio, Acting Staff Director Theodore E. Allison, Staff Director tJoHN M. Denkler, Staff Director Harry A. Guinter, Assistant Director for Contingency Edward T. Mulrenin, Assistant Staff Director Planning Joseph W. Daniels, Sr., Director of Equal Employment Opportunity Division of Federal Reserve Bank Operations Division of Data Processing Clyde H. Farnsworth, Jr., Director Charles L. HaMpton, Director Lorin S. Meeder, Associate Director Bruce M. Beardsley, Associate Director Walter AlthauseN, Assistant Director tUYLESS D. Black, Deputy Director Charles W. Bennett, Assistant Director Glenn L. Cummins, Assistant Director Richard B. Green, Assistant Director Neal H. Hillerman, Assistant Director Elliott C. McEntee, Assistant Director C. William Schleicher, Jr., Assistant Director David L. Robinson, Assistant Director Robert J. Zemel, Associate Director P.D. Ring, Adviser Division of Personnel David L. Shannon, Director John R. Weis, Assistant Director Charles W. Wood, Assistant Director Office of the Controller John Kakalec, Controller George E. Livingston, Assistant Controller Division of Support Services Donald E. Anderson, Director Robert E. Frazier, Associate Director Walter W. Kreimann, Associate Director *On loan from the Federal Reserve Bank of Kansas City. tOn loan from the Federal Reserve Bank of Dallas. $On leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Federal Reserve Bulletin □ August 1981 FOMC and Advisory Councils Federal Open Market Committee Paul A. Volcker, Chairman Anthony M. Solomon, Vice Chairman Edward G. Boehne Lyle E. Gramley Frederick H. Schultz Robert H. Boykin Silas Keehn Nancy H. Teeters E. Gerald Corrigan J. Charles Partee Henry C. Wallich Emmett J. Rice Stephen H. Axilrod, Staff Director John P. Danforth, Associate Economist Murray Altmann, Secretary Richard G. Davis, Associate Economist Normand R. V. Bernard, Assistant Secretary Edward C. Ettin, Associate Economist Nancy M. Steele, Deputy Assistant Secretary Peter M. Keir, Associate Economist Michael Bradfield, General Counsel Donald J. Mullineaux, Associate Economist James H. Oltman, Deputy General Counsel Michael J. Prell, Associate Economist Robert E. Mannion, Assistant General Counsel Karl L. Scheld, Associate Economist James L. Kichline, Economist Edwin M. Truman, Associate Economist Joseph E. Burns, Associate Economist Joseph S. Zeisel, Associate Economist Peter D. Sternlight, Manager for Domestic Operations, System Open Market Account Federal Advisory Council Merle E. Gilliand, Fourth District, President Chauncey E. Schmidt, Twelfth District, Vice President William S. Edgerly, First District Robert M. Surdam, Seventh District Donald C. Platten, Second District Ronald Terry, Eighth District John W. Walther, Third District Clarence G. Frame, Ninth District J. Owen Cole, Fifth District Gordon E. Wells, Tenth District Robert Strickland, Sixth District T. C. Frost, Jr., Eleventh District Herbert V. Prochnow, Secretary William J. Korsvik, Associate Secretary Consumer Advisory Council Ralph J. Rohner, Washington, D.C., Chairman Charlotte H. Scott, Charlottesville, Virginia, Vice Chairman Arthur F. Bouton, Little Rock, Arkansas F. Thomas Juster, Ann Arbor, Michigan Julia H. Boyd, Alexandria, Virginia Richard F. Kerr, Palm City, Florida Ellen Broadman, Washington, D.C. Harvey M. Kuhnley, Minneapolis, Minnesota James L. Brown, Milwaukee, Wisconsin The Rev. Robert J. McEwen, S.J., Chestnut Hill, Mark E. Budnitz, Atlanta, Georgia Massachusetts Joseph N. Cugini, Westerly, Rhode Island Stan L. Mularz, Chicago, Illinois Richard S. D’Agostino, Philadelphia, Pennsylvania William J. O’Connor, Buffalo, New York Susan Pierson De Witt, Springfield, Illinois Margaret Reilly-Petrone, Upper Montclair, New Jersey Joanne S. Faulkner, New Haven, Connecticut Rene Reixach, Rochester, New York Luther Gatling, New York, New York Florence M. Rice, New York, New York Vernard W. Henley, Richmond, Virginia Henry B. Schechter, Washington, D.C. Juan Jesus Hinojosa, McAllen, Texas Peter D. Schellie, Washington, D.C. Shirley T. Hosoi, Los Angeles, California Nancy Z. Spillman, Los Angeles, California George S. Irvin, Denver, Colorado Richard A. Van Winkle, Salt Lake City, Utah Mary W. Walker, Monroe, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 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 P. Henderson Frank E. Morris Thomas I. Atkins 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 Edward G. Boehne Jean A. Crockett Richard L. Smoot CLEVELAND* 44101 J. L. Jackson Willis J. Winn William H. Knoell Walter H. MacDonald Cincinnati ................. 45201 Martin B. Friedman Robert E. Showalter Pittsburgh................. .15230 Milton G. Hulme, Jr. Harold J. Swart RICHMOND* ...............23219 Maceo A. Sloan Robert P. Black Steven Muller Jimmie R. Monhollon Baltimore ...................21203 Vacancy Robert D. McTeer, Jr. Charlotte ....................28230 Naomi G. Albanese 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 Louis J. Willie Hiram J. Honea Jacksonville ............. 32231 Jerome P. Keuper Charles D. East Miami ........................ 33152 Roy W. Vandegrift, Jr. F. J. Craven, Jr. Nashville ................... 37203 John C. Bolinger, Jr. Jeffrey J. Wells New Orleans ............ 70161 Horatio C. Thompson James D. Hawkins CHICAGO* ................. 60690 John Sagan Silas Keehn Stanton R. Cook Daniel M. Doyle Detroit ....................... 48231 Herbert H. Dow 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 Sister Eileen M. Egan Donald L. Henry Memphis ................... 38101 Patricia W. Shaw Robert E. Matthews MINNEAPOLIS 55480 Stephen F. Keating E. Gerald Corrigan William G. Phillips Thomas E. Gainor Helena ....................... 59601 Norris E. Hanford Betty J. Lindstrom KANSAS CITY 64198 Paul H. Henson Roger Guffey Doris M. Drury 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 Gerald D. Hines Robert H. Boykin John V. James William H. Wallace El Paso ..................... 79999 Josefina A. Salas-Porras Joel L. Koonce, Jr. Houston .................... 77001 Jerome L. Howard J. Z. Rowe San Antonio ............ 78295 Lawrence L. Crum Thomas H. Robertson 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 John C. Hampton Angelo S. Carella Salt Lake City......... 84130 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

All Federal Reserve Board Publications Copies are available from PUBLICATIONS SERVICES, payable to the order of the Board of Governors of the Federal Room MP-510, Board of Governors of the Federal Reserve Reserve System. Remittance from foreign residents should System, Washington, D.C. 20551. When a charge is indicat­ be drawn on a U.S. bank. Stamps and coupons are not ed, remittance should accompany request and be made accepted. The Federal Reserve System—Purposes and Func­ Joint Treasury-Federal Reserve Study of the Gov­ tions. 1974. 125 pp. ernment Securities Market; Staff Studies—Part Annual Report. 1. 1970. 86 pp. $.50 each; 10 or more to one address, $.40 Federal Reserve Bulletin. Monthly. $20.00 per year or each. Part 2, 1971. 153 pp. and Part 3, 1973. 131 pp. Each $2.00 each in the United States, its possessions, Canada, volume $1.00; 10 or more to one address, $.85 each. and Mexico; 10 or more of same issue to one address, Open Market Policies and Operating Procedures— $18.00 per year or $1.75 each. Elsewhere, $24.00 per Staff Studies. 1971. 218 pp. $2.00 each; 10 or more to year or $2.50 each. one address, $1.75 each. Banking and Monetary Statistics. 1914-1941. (Reprint Reappraisal of the Federal Reserve Discount Mecha­ of Part I only) 1976. 682 pp. $5.00. nism. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. Banking and Monetary Statistics, 1941-1970. 1976. 1972. 220 pp. Each volume $3.00; 10 or more to one 1,168 pp. $15.00. address, $2.50 each. The Econometrics of Price Determination Confer­ Annual Statistical Digest ence, October 30-31, 1970, Washington, D.C. 1972. 397 1971-75. 1976. 339 pp. $4.00 per copy for each paid pp. Cloth ed. $5.00 each; 10 or more to one address, subscription to Federal Reserve Bulletin; all others $4.50 each. Paper ed. $4.00 each; 10 or more to one $5.00 each. address, $3.60 each. 1972-76. 1977. 377 pp. $10.00 per copy. Federal Reserve Staff Study: Ways to Moderate 1973-77. 1978. 361 pp. $12.00 per copy. Fluctuations in Housing Construction. 1972. 487 1974-78. 1980. 305 pp. $10.00 per copy. pp. $4.00 each; 10 or more to one address, $3.60 each. 1970-79. 1981. 587 pp. $20.00 per copy. Lending Functions of the Federal Reserve Banks. 1973. 271 pp. $3.50 each; 10 or more to one address, Federal Reserve Chart Book. Issued four times a year in $3.00 each. February, May, August, and November. Subscription Improving the Monetary Aggregates: Report of the includes one issue of Historical Chart Book. $7.00 per Advisory Committee on Monetary Statistics. year or $2.00 each in the United States, its possessions, 1976. 43 pp. $1.00 each; 10 or more to one address, $.85 Canada, and Mexico. Elsewhere, $10.00 per year or each. $3.00 each. Annual Percentage Rate Tables (Truth in Lending— Historical Chart Book. Issued annually in Sept. Subscrip­ Regulation Z) Vol. I (Regular Transactions). 1969. 100 tion to Federal Reserve Chart Book includes one issue. pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each $1.25 each in the United States, its possessions, Canada, volume $1.00; 10 or more of same volume to one and Mexico; 10 or more to one address, $1.00 each. address, $.85 each. Elsewhere, $1.50 each. Selected Interest and Exchange Rates—Weekly Se­ Federal Reserve Measures of Capacity and Capacity ries of Charts. Weekly. $15.00 per year or $.40 each in Utilization. 1978. 40 pp. $1.75 each; 10 or more to one address, $1.50 each. the United States, its possessions, Canada, and Mexico; 10 or more of same issue to one address, $13.50 per year The Bank Holding Company Movement to 1978: A or $.35 each. Elsewhere, $20.00 per year or $.50 each. Compendium. 1978. 289 pp. $2.50 each; 10 or more to The Federal Reserve Act, as amended through December one address, $2.25 each. 1976, with an appendix containing provisions of certain Improving the Monetary Aggregates: Staff Papers. other statutes affecting the Federal Reserve System. 307 1978. 170 pp. $4.00 each; 10 or more to one address, pp. $2.50. $3.75 each. Regulations of the Board of Governors of the Fed­ 1977 Consumer Credit Survey. 1978. 119 pp. $2.00 each. eral Reserve System Flow of Funds Accounts. 1949-1978. 1979. 171 pp. $1.75 Published Interpretations of the Board of Gover­ each; 10 or more to one address, $1.50 each. nors, as of June 30, 1980. $7.50. Introduction to Flow of Funds. 1980. 68 pp. $1.50 each; Bank Credit-Card and Check-Credit Plans. 1968. 102 10 or more to one address, $1.25 each. pp. $1.00 each; 10 or more to one address, $.85 each. Public Policy and Capital Formation. 1981. 326 pp. Report of the Joint Treasury-Federal Reserve Study $13.50 each. of the U.S. Government Securities Market. 1969. New Monetary Control Procedures: Federal Re­ 48 pp. $.25 each; 10 or more to one address, $.20 each. serve Staff Study, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 Consumer Education Pamphlets The GNMA-Guaranteed Passthrough Security: M ar­ Short pamphlets suitable for classroom use. Multiple ket Developm ent and Im plications for the copies available without charge. Growth and Stability of Home M ortgage Lend­ ing, by David F. Seiders. Dec. 1979. 65 pp. Alice in Debitland Foreign Ownership and the Performance of U.S. The Board of Governors of the Federal Reserve System Banks, by James V. Houpt, July 1980. 27 pp. Consumer Handbook To Credit Protection Laws Performance and Characteristics of Edge Corpora­ The Equal Credit Opportunity Act and . . . Age tions, by James V. Houpt. Feb. 1981. 56 pp. The Equal Credit Opportunity Act and . . . Credit Rights in Banking Structure and Performance at the State Housing Level during the 1970s, by Stephen A. Rhoades. Mar. The Equal Credit Opportunity Act and . . . Doctors, Law­ 1981. 26 pp. yers, Small Retailers, and Others Who May Provide Federal Reserve Decisions on Bank M ergers and Ac­ Incidental Credit quisitions during the 1970s, by Stephen A. Rhoades. The Equal Credit Opportunity Act and . . . Women Aug. 1981. 16 pp. Fair Credit Billing The Federal* Open Market Committee Federal Reserve Bank Board of Directors Reprints Federal Reserve Banks Most of the articles reprinted do not exceed 12 pages. Federal Reserve Glossary How to File A Consumer Credit Complaint Measures of Security Credit. 12/70. If You Borrow To Buy Stock Revision of Bank Credit Series. 12/71. If You Use A Credit Card Assets and Liabilities of Foreign Branches of U.S. Banks. Truth in Leasing 2/72. U.S. Currency Bank Debits, Deposits, and Deposit Turnover—Revised Se­ What Truth in Lending Means to You ries. 7/72. Rates on Consumer Instalment Loans. 9/73. New Series for Large Manufacturing Corporations. 10/73. Staff Studies The Structure of Margin Credit. 4/75. Studies and papers on economic and financial subjects Industrial Electric Power Use. 1/76. that are of general interest. Revised Series for Member Bank Deposits and Aggregate Reserves. 4/76. Summaries Only Printed in the Bulletin Industrial Production—1976 Revision. 6/76. Requests to obtain single copies of the full text or to be Federal Reserve Operations in Payment Mechanisms: A added to the mailing list for the series may be sent to Summary. 6/76. Publications Services. The Federal Budget in the 1970’s. 9/78. Redefining the Monetary Aggregates. 1/79. Tie-ins Between the G ranting of Credit and Sales of Implementation of the International Banking Act. 10/79. Insurance by Bank Holding Companies and O ther Perspectives on Personal Saving. 8/80. Lenders, by Robert A. Eisenbeis and Paul R. Schweit­ The Impact of Rising Oil Prices on the Major Foreign zer. Feb. 1979. 75 pp. Industrial Countries. 10/80. Measures of Capacity U tilization: Problems and Federal Reserve and the Payments System: Upgrading Elec­ Tasks, by Frank de Leeuw, Lawrence R. Forest, Jr., tronic Capabilities for the 1980s. 2/81. Richard D. Raddock, and Zoltan E. Kenessey. July U.S. International Transactions in 1980. 4/81. 1979. 264 pp. Survey of Finance Companies, 1980. 5/81. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Index to Statistical Tables References are to pages A-3 through A-66 although the prefix “A” is omitted in this index ACCEPTANCES, bankers, 10, 23, 25 Demand deposits—Continued Agricultural loans, commercial banks, 18, 19, 20, 24 Ownership by individuals, partnerships, and Assets and liabilities {See also Foreigners) corporations, 23 Banks, by classes, 17, 18-21 Subject to reserve requirements, 14 Domestic finance companies, 37 Turnover, 12 Federal Reserve Banks, 11 Depository institutions Nonfinancial corporations, current, 36 Reserve requirements, 8 Savings institutions, 27 Reserves, 3, 4, 5, 14 Automobiles Deposits (See also specific types) Consumer installment credit, 40, 41 Banks, by classes, 3, 17, 18-21, 27 Production, 46, 47 Federal Reserve Banks, 4, 11 Turnover, 12 BANKERS balances, 17, 18-20 Discount rates at Reserve Banks (See Interest rates) (See also Foreigners) Discounts and advances by Reserve Banks {See Loans) Banks for Cooperatives, 33 Dividends, corporate, 35 Bonds (See also U.S. government securities) New issues, 34 EMPLOYMENT, 44, 45 Yields, 3 Eurodollars, 25 Branch banks, 15, 21, 54 Business activity, nonfinancial, 44 FARM mortgage loans, 39 Business expenditures on new plant and equipment, 36 Federal agency obligations, 4, 10, 11, 12, 32 Business loans (See Commercial and industrial loans) Federal and federally sponsored credit agencies, 33 Federal finance CAPACITY utilization, 44 Debt subject to statutory limitation and types and Capital accounts ownership of gross debt, 30 Banks, by classes, 17 Receipts and outlays, 29 Federal Reserve Banks, 11 Treasury operating balance, 28 Central banks, 66 Federal Financing Bank, 28, 33 Certificates of deposit, 21, 25 Federal funds, 3, 6, 18, 19, 20, 25, 28 Commercial and industrial loans Federal Home Loan Banks, 33 Commercial banks, 15, 17, 24 Federal Home Loan Mortgage Corporation, 33, 38, 39 Weekly reporting banks, 18-21, 22 Federal Housing Administration, 33, 38, 39 Commercial banks Federal Intermediate Credit Banks, 33 Assets and liabilities, 3, 15, 17, 18-21 Federal Land Banks, 33, 39 Business loans, 24 Federal National Mortgage Association, 33, 38, 39 Commercial and industrial loans, 22, 24 Federal Reserve Banks Consumer loans held, by type, 40, 41 Condition statement, 11 Loans sold outright, 21 Discount rates {See Interest rates) Nondeposit funds, 16 U.S. government securities held, 4, 11, 12, 30, 31 Number, 17 Federal Reserve credit, 4, 5, 11, 12 Real estate mortgages held, by holder and property, 39 Federal Reserve notes, 11 Commercial paper, 3, 23, 25, 37 Federally sponsored credit agencies, 33 Condition statements (See Assets and liabilities) Finance companies Construction, 44, 48 Assets and liabilities, 37 Consumer installment credit, 40, 41 Business credit, 37 Consumer prices, 44, 49 Loans, 18, 19, 20, 40, 41 Consumption expenditures, 50, 51 Paper, 23, 25 Corporations Financial institutions, loans to, 18, 19, 20 Profits and their distribution, 35 Float, 4 Security issues, 34, 63 Flow of funds, 42, 43 Cost of living (See Consumer prices) Foreign currency operations, 11 Credit unions, 27, 40, 41 Foreign deposits in U.S. banks, 4, 11, 18, 19, 20 Currency and coin, 5, 17 Foreign exchange rates, 66 Currency in circulation, 4, 13 Foreign 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 Stock, 4, 53 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 Government National Mortgage Association, 33, 38, 39 REAL estate loans Gross national product, 50, 51 Banks, by classes, 18-20, 39 Mortgage terms, yields, and activity, 3, 38 HOUSING, new and existing units, 48 Savings institutions, 27, 39 Type of holder and property mortgaged, 39 INCOME, personal and national, 44, 50, 51 Repurchase agreements and federal funds, 6, 18, 19, 20 Industrial production, 44, 46 Reserve requirements, 8 Installment loans, 40, 41 Reserves Insurance companies, 27, 30, 31, 39 Commercial banks, 17 Interbank loans and deposits, 17 Depository institutions, 3, 4, 5, 14 Interest rates Federal Reserve Banks, 11 Bonds, 3 Member bapks, 14 Business loans of banks, 24 U.S. reserve assets, 53 Federal Reserve Banks, 3, 7 Residential mortgage loans, 38 Foreign countries, 66 Retail credit and retail sales, 40, 41, 44 Money and capital markets, 3, 25 Mortgages, 3, 38 SAVING Prime rate, commercial banks, 24 Flow of funds, 42, 43 Time and savings deposits, 9 National income accounts, 51 International capital transactions of the United States, Savings and loan assns., 3, 9, 27, 31, 39, 42 54-65 Savings deposits (See Time deposits) International organizations, 54-59, 62-65 Savings institutions, selected assets and liabilities, 27 Inventories, 50 Securities (See also U.S. government securities) Investment companies, issues and assets, 35 Federal and federally sponsored agencies, 33 Investments (See also specific types) Foreign transactions, 63 Banks, by classes, 17, 27 New issues, 34 Commercial banks, 3, 15, 17, 18-20 Prices, 26 Federal Reserve Banks, 11, 12 Special drawing rights, 4, 11, 52, 53 Savings institutions, 27, 39 State and local governments Deposits, 18, 19, 20 LABOR force, 45 Holdings of U.S. government securities, 30, 31 Life insurance companies (See Insurance companies) New security issues, 34 Loans (See also specific types) Ownership of securities of, 18, 19, 20, 27 Banks, by classes, 17, 18-21, 27 Yields of securities, 3 Commercial banks, 3, 15, 17, 18-21, 22, 24 Stock market, 26 Federal Reserve Banks, 3, 4, 5, 7, 11, 12 Stocks (See also Securities) Insured or guaranteed by United States, 38, 39 New issues, 34 Savings institutions, 27, 39 Prices, 26 MANUFACTURING TAX receipts, federal, 29 Capacity utilization, 44 Thrift institutions (See Savings institutions) Production, 44, 47 Time deposits, 3, 9, 12, 14, 17, 18-21 Margin requirements, 26 Trade, foreign, 53 Member banks Treasury currency, Treasury cash, 4 Borrowing at Federal Reserve Banks, 5, 11 Treasury deposits, 4, 11, 28 Federal funds and repurchase agreements, 6 Treasury operating balance, 28 Reserve requirements, 8 UNEMPLOYMENT, 45 Reserves and related items, 14 U.S. balance of payments, 52 Mining production, 47 U.S. government balances Mobile home shipments, 48 Commercial bank holdings, 18, 19, 20 Monetary aggregates, 3, 14 Member bank holdings, 14 Money and capital market rates (See Interest Treasury deposits at Reserve Banks, 4, 11, 28 rates) U.S. government securities Money stock measures and components, 3, 13 Bank holdings, 17, 18-20, 30, 31 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 Savings institutions, 27 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

A76 The Federal Reserve System B ou n d aries o f F ed eral R eserve D istricts and T heir B ran ch T erritories Minneapolis Detroit Chicago jcif& 2£ \Salt Lake City Omaha* Kansas City | <t. L \ o a u is Louisville 'harlott'j \Oklahoma Cit) Nashwllgr 'n8eles .ittleRo'occkk Bniirrmminianhgahman^®^^ Houston Heans tan Antonio January 1978 ALASKA HAWAII Legend Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch • Federal Reserve Branch Cities Territories Federal Reserve Bank Facility © Board of Governors of the Federal Reserve Digitized for FRASESRy stem http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A77 Publications of Interest Federal Reserve Regulatory Service Federal Reserve Regulatory Service The Federal Reserve Board has published a new Volume I looseleaf service that includes all Board regulations and related interpretations and documents. The new service, entitled the “Federal Reserve Regulatory Service,” consists of four publications: a complete service covering all Board regulations and related materials in two volumes, and three separate handbooks pertaining to securities credit, monetary policy, and consumer affairs. These publications are designed to help those who must refer frequently to the Board’s regulatory materi­ als. They will be updated on at least a monthly basis, and each will be cross-indexed. The first handbook, the Securities Credit Transac­ tions Handbook, contains Regulations G, T, U, and X dealing with extensions of credit for the purchase of securities, together with all related statutes, Board interpretations, rulings, and staff opinions. A similar publication, the Monetary Policy and Federal Reserve Reserve Requirements Handbook, contains Regula­ Regulatory Service tions A, D, and Q, plus related materials. For conve­ Volume II nient reference, it also contains the rules of the Depos­ itory Institutions Deregulation Committee. The Consumer and Community Affairs Handbook contains Regulations B, C, D, E, Z, AA, BB, and associated documents. The annual subscription price for the Federal Re­ serve Regulatory Service is $150.00; for the Securities Credit Transactions Handbook, $50.00; for the Mone­ tary Policy and Reserve Requirements Handbook, $50.00; and for the Consumer and Community Affairs Handbook, $50.00. All subscription requests must be accompanied by a check or money order payable to Board of Governors of the Federal Reserve System. Orders should be addressed to Regulatory Service Subscriptions, Federal Reserve Board, 20th Street and Constitution Avenue, N.W., Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis