Federal Reserve Bulletin, 1981-10

VOLUME 67 • NUMBER 10 • OCTOBER 1981 FEDERAL RESERVE BULLETIN Board of Governors of the Federal Reserve System Washington, 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 749 PUBLIC POLICY AND CAPITAL 774 Vice Chairman Schultz presents the views FORMATION of the Board on proposed legislation dealing with the public release, on a deferred basis, A System study finds that the U.S. aggreof the minutes of the Federal Open Market gate gross saving rate is probably adequate, Committee and says that detailed and but it reports evidence that the existing lengthy minutes of FOMC meetings would capital stock is seriously misallocated not add greatly to the information currently among sectors of the economy and types of available to the public; also, proposed legiscapital. lation should provide authority to protect information relating to international finan- 762 INDUSTRIAL PRODUCTION cial matters, before the Domestic Monetary Output decreased 0.8 percent in September. Policy Subcommittee of the House Committee on Banking, Finance and Urban Af- 764 STATEMENTS TO CONGRESS fairs, September 29, 1981. Paul A. Volcker, Chairman, Board of Gov- 775 Chairman Volcker testifies on proposed legernors, says that intense financial pressures islation to address the unusual financial are being exerted on many firms and indi- pressures faced by many depository instituviduals and that relief from those pressures tions and says that the basic solution to as well as prevention of a recurrence de- these financial pressures must be found in pends on dealing with inflation; consistent the context of the fight on inflation, before with restraint on growth of money and the Subcommittee on Financial Institutions credit is a reduction of the federal deficit, Supervision, Regulation and Insurance of which will help to relieve market pressures the House Committee on Banking, Finance and make room for investment and housing, and Urban Affairs, October 1, 1981. before the Senate Committee on the Bud- 778 E. Gerald Corrigan, President, Federal Reget, September 16, 1981. serve Bank of Minneapolis, discusses the 767 Frederick H. Schultz, Vice Chairman, study compiled by the Commodity Futures Board of Governors, testifies on the impact Trading Commission of events in the silver of high interest rates on small business, market in 1979 and 1980, before the Subbefore the Senate Committee on Small Bus- committee on Conservation, Credit, and iness, September 23, 1981. Rural Development of the House Committee on Agriculture, October 1, 1981. 769 Henry C. Wallich, Member, Board of Governors, discusses the evolution and impact 781 John E. Ryan, Director of the Board's of current account surpluses of the Organi- Division of Banking Supervision and Reguzation of Petroleum Exporting Countries lation, says, in connection with the Bank and the significance of OPEC investment Secrecy Act, that recent changes in the decisions for the banking system, before the regulations covering the filing of currency Commerce, Consumer, and Monetary Af- transaction reports will result in more confairs Subcommittee of the House Commit- sistent reporting and interpretation of these tee on Government Operations, September data and new bank examination procedures 23, 1981. will improve the level of compliance with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

the act, before the House Select Committee ly the Committee decided to seek behavior on Narcotics Abuse and Control, October of reserve aggregates associated with 9, 1981. growth of Ml-B from June to September at an annual rate of 7 percent after allowance for flows into NOW accounts (resulting in 785 ANNOUNCEMENTS growth at an annual rate of about 2 percent Change in discount rate surcharge. from the average in the second quarter to Amendment to Regulation T requiring bro- the average in the third quarter), provided that growth of M2 remained around the kers and dealers to obtain "good faith" upper end of its range for the year or tended margin from customers who write uncovto move down within the range. If it apered options on government securities. peared to the Manager for Domestic Opera- Issuance of interpretation regarding posi- tions that pursuit of the monetary objections in interest rate futures contracts in- tives and related reserve paths during the volving domestic bank certificates of depos- period before the next meeting was likely to it. be associated with a federal funds rate persistently outside a range of 15 to 21 Interpretation of Regulation Q to clarify percent, the Chairman might call for a Comwhich depositors are eligible to hold intermittee consultation. est-bearing checking accounts at member banks. 796 LEGAL DEVELOPMENTS Availability of official staff commentary on Regulation E (Electronic Fund Transfers). Amendments to Regulations A and Q; bank holding company and bank merger orders; Publication of official staff commentary on and pending cases. Regulation Z (Truth in Lending). Proposed official staff commentary intend- AI FINANCIAL AND BUSINESS STATISTICS ed to apply and interpret Regulation M A3 Domestic Financial Statistics (Consumer Leasing). A46 Domestic Nonfinancial Statistics A54 International Statistics Meeting of Consumer Advisory Council. A70 Special Tables Publication of Seasonal Adjustment of the Monetary Aggregates, the Report of the A69 GUIDE TO TABULAR PRESENTATION, Committee of Experts on Seasonal Adjust- STATISTICAL RELEASES, AND SPECIAL ment Techniques. TABLES Annual revision of industrial production index and capacity utilization rates. A84 BOARD OF GOVERNORS AND STAFF Availability of revised list of over-the- A86 FEDERAL OPEN MARKET COMMITTEE counter stocks that are subject to the AND STAFF; ADVISORY COUNCILS Board's margin regulations. Change in Board staff. A87 FEDERAL RESERVE BANKS, BRANCHES, AND OFFICES 789 RECORD OF POLICY ACTIONS OF THE A88 FEDERAL RESERVE BOARD FEDERAL OPEN MARKET COMMITTEE PUBLICATIONS At the meeting on August 18, 1981, the Committee agreed to reaffirm the short-run A90 INDEX TO STATISTICAL TABLES policy objectives for the third quarter adopted at its previous meeting. Specifical- A92 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Public Policy and Capital Formation Jared J. Enzler, William E. Conrad, and Lewis durable goods as well as housing) is no less Johnson of the Board's Division of Research and important a part of the capital stock than is Statistics prepared this article. It provides a brief producers' equipment. Accordingly, capital is review of the study, Public Policy and Capital defined to include consumer durables and gov- Formation, presented without attribution to the ernment nonmilitary capital, and income is individual research papers and their authors; the adjusted to include the service flows from this appendix lists the titles of the papers and the capital. authors. The views and opinions expressed are those of the authors and do not necessarily represent those of the Federal Reserve Board, its HISTORICAL PERSPECTIVE staff, or the other contributors to the study. It is widely believed that prospects for capital Since the early seventies, growing concern has formation in the United States have deteriorated developed about the adequacy of capital forma- significantly over the past decade. But recent tion in the United States. Having a profound experience should be considered in historical interest in the economic forces underlying the perspective. Although the ratio of gross investcapital formation process, the Board of Gover- ment to gross national product (which is also the nors of the Federal Reserve System directed its gross saving rate) has been cyclically volatile in staff to study the determinants of capital forma- the postwar years, ranging between 21 and 26 tion and the public policy measures that might be percent, it has no apparent trend (see figure 1). In used to influence real investment in the United examining functional categories of investment, States. The resulting study, Public Policy and however, a significant trend is evident: since the Capital Formation, was published in April 1981. early sixties, investment has become more con- The study was completed before the enactment centrated in equipment at the expense of strucof the Economic Recovery Tax Act of 1981; however, at the end of this article we make a few 1. Gross investment as a share of adjusted GNP brief comments on the effect of that act. ihi-iim -.a Percent To assess the adequacy of the rate of capital 1972 DOLLARS formation requires a suitable means of valuing Total investment capital. A basic premise of this study is the compelling proposition that capital has value only in terms of the volume and timing of con- llliilfellllll sfl v sumption that it will ultimately provide. Accord- Private ing to this view, the rate of capital formation Vlfc mi . ' t should be raised if, and only if, a higher rate can '.V .i-.i ••••:>' . '•*' fi 'I1 0 be expected to achieve a more highly valued pattern of consumption. This proposition virtual- Public MMBHHHHHHHHHHHHBHHHBHHMMHHHHHii 0 ly dictates the methodology of the study. Be- 1950 1955 1960 1965 1970 1975 1980 cause the consumption flows facilitated by a The gross national product concept used in constructing figures 1,2, particular capital investment typically develop and 3 differs from the national income account definition because it over time and stretch well into the future, long- includes imputed returns on the stocks of consumer durables and on the nonmilitary government capital stock. run considerations dominate the discussion. Be- Adapted from Dana B. Johnson, "Capital Formation in the United cause capital is valued in terms of resulting States: The Postwar Perspective," in Board of Governors of the Federal Reserve System, Public Policy and Capital Formation (Board consumption flows, household capital (consumer of Governors, 1981), pp. 47-58. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

750 Federal Reserve Bulletin • November 1981 2. Functional categories of gross investment as a share 3. Ratio of business fixed investment and depreciation of adjusted GNP to adjusted GNP Percent Percent 15 1972 DOLLARS Gross investment Depreciation t i t I 1 I I i I t i iflBHHHHHHBHHBBBHi See note to figure 1. 1950 1955 1960 1965 1970 1975 1980 no clear trend over the postwar period (figure 4). See note to figure 1. And the apparent fall in the before-tax rate of return, which may be viewed as an index of the tures (figure 2). Moreover, during the same perimarginal product of capital, could be evidence od, investment has shifted toward equipment that an unsustainably high level of capital formawith shorter service lives and, consequently, tion has been raising the capital intensity. higher depreciation rates. With a nearly trendiess Although the historical record shows a fairly gross investment ratio, the increased depreciastable pattern of postwar capital formation, it tion rates have produced a decline in the ratio of cannot reveal whether U.S. saving has been at net investment to GNP as is evident in figure 3. the most desirable level. That assessment re- Thus the net rate of growth of the capital stock quires a criterion forjudging alternative patterns has been declining over the postwar period. of capital formation. While the gross rate of capital formation has The purpose of accumulating capital, at the been relatively steady in the United States, it has expense of an initial sacrifice of consumption, is been low relative to that of other major industrialized countries except the United Kingdom. 4. Rate of return on capital, nonfinancial corporations Over the postwar period, the ratio of gross fixed Percent capital formation (exeluding consumer durables) to GNP has averaged about 18 percent, while the ratios for most other industrialized countries have ranged from 20 to 24 percent (table 1). A similar pattern holds for business fixed investment. The contrasts may not be as stark as these numbers indicate, however, because the definitions of variables vary across countries due both to conceptual differences and to inherent problems with index numbers resulting from differing relative costs of capital. The inclusion of consumer durables might also narrow the gap between gross capital formation rates for the Unit- 1950 1955 1960 1965 1970 1975 1980 ed States and other countries. Rate of return is the ratio of profits (with inventory valuation and Some observers have speculated that declining capital consumption adjustments) plus net interest to tangible assets returns to capital investment have retarded capi- (plant and equipment plus inventories plus land) of nonfinancial corporations valued at replacement cost. tal formation in recent years. In fact, the after- Shaded areas represent periods of recession as defined by the tax real rate of return (a measure of the induce- National Bureau of Economic Research. Adapted from Martha S. Scanlon, "Postwar Trends in Corporate ment to undertake new investment) has shown Rates of Return," in Public Policy and Capital Formation, pp. 75-87. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Public Policy and Capital Formation 751 1. Gross fixed capital formation ratios, pattern of capital accumulation, and output. A seven countries, current prices, key conclusion of the theory is that if the labor selected periods, 1950-76' supply and the level of technology increase at Percent of gross product steady rates, market forces will direct an economy toward a balanced-growth path—one that is Current prices characterized by a constant ratio of capital to CCoouunnttrryy aanndd ppeerriioodd T fix o e ta d l res N id o e n n - tial output and a constant real rate of return to capital fixed capital. On a balanced-growth path, total output, formation investment consumption, and the capital stock will all grow United States2 at a constant rate equal to the sum of the rate of 1950-59 18.3 12.9 1960-69 18.0 13.7 growth of the labor supply and the rate of techni- 1970-76 17.6 13.4 cal progress. These important propositions can Japan 1952-59 23.3 19.8 be demonstrated with a simple model. 1960-69 32.4 26.7 Consider a hypothetical economy in which the 1970-76 33.6 25.8 labor force grows at a constant rate n, there is no Germany 81 §§11 1950-59 21.5 technical progress, the fraction of output saved s 1960-69 24.7 17.5 is constant, and capital does not depreciate. Any 1970-76 23.7 16.8 or all of these assumptions may be relaxed United Kingdom 1950-59 14.6 11.6 without significantly altering the main conclu- 1960-69 17.7 14.3 1970-76 19.3 15.6 sions, but the discussion would be more complicated. The relevant features of this economy are Canada 1950-60 24.0 19.3 presented in figure 5. 1961-69 22.3 17.8 1970-76 22.6 17.1 France 5. A hypothetical economy 1951-59 19.0 1960-69 22.5 1970-76 23.6 16.5 Italy 1951-59 20.1 15.0 1960-69 21.0 14.6 1970-76 20.7 14.7 1. There are breaks in the series: Germany, 1960; United Kingdom, 1962; Canada, 1961; France, 1970; Italy, 1970. Constant price series are on 1971 basis for Canada, 1972 for the United States, and 1970 for all other countries. The capital formation ratios are averages for the years indicated of the annual ratios; this procedure is followed throughout the paper. 2. The U.S. data are on U.N. Standard National Accounts basis; government capital formation is included. SOURCES. Adapted from Raymond Lubitz, "Capital Formation and Saving in Major Industrial Countries," in Board of Governors of the Federal Reserve System, Public Policy and Capital Formation (Board of Governors, 1981), pp. 59-73. National sources (see appendix C of Lubitz paper); OECD, National Accounts, and estimates by Lubitz. to enhance the potential output of goods and services for later consumption. Therefore, sim- Capital per worker ply put, the question is whether maintaining a Adapted from Lewis Johnson, "Capital Formation in the Long larger capital stock relative to the work force will Run," in Public Policy and Capital Formation, pp. 91-98. yield a more highly valued pattern of per capita consumption. Units of capital per worker are on the horizontal axis and output per worker on the vertical axis. The curve y represents the production CAPITAL FORMATION IN THE LONG RUN function. It shows the amount of output per worker that can be obtained with alternative Neoclassical growth theory provides the neces- amounts of capital per worker. It has the usual sary links among consumption behavior, the property of diminishing returns; that is, each Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

752 Federal Reserve Bulletin • November 1981 additional unit of capital increases output less of labor in efficiency units and is equal to the sum than the last. of the population growth rate and the rate of Saving per person is a constant fraction s of technical progress. With these redefinitions, the output per person and is shown by the curve sy, previous results hold. A balanced-growth path which represents the rate at which new capital will exist on which the capital-output ratio and per worker is being provided by the economy. the ratio of capital to efficiency units of labor are The line nk represents per capita net invest- constant. However, the amount of capital, outment needed to maintain the existing level of put, consumption, and saving per individual capital per worker. It is the product of the rate of worker will grow at the rate of technical proggrowth of the work force, n, and the existing ress. capital intensity k. While changes in the saving rate do not perma- Balanced growth occurs when saving provides nently alter the economy's rate of growth, they just enough new capital to maintain the existing do permanently change consumption and output capital intensity—at the intersection of the sy per efficiency unit of labor. For example, as and nk curves. The balanced-growth capital in- figure 6 shows, an increase in the saving rate tensity is k*. At a lower capital intensity, the from so to $i will increase the balanced-growth amount of new capital supplied would be more capital intensity (from k to k ) and output per 0 x than sufficient to maintain the existing ratio of unit of labor (from y to yi). Consumption per 0 capital to labor, and the capital intensity would unit of labor can be measured as the vertical tend to rise toward k*. At a higher capital intensi- distance between the curves y and sy. It changes ty, the amount of new capital provided would be from c to C\. In this example, long-run consump- 0 insufficient to maintain the existing capital inten- tion increases with the saving rate, but a large sity, and accordingly the capital intensity would enough increase in the saving rate would bring fall. about a decline in long-run consumption. At a In the absence of technical change, balanced saving rate of 1.0, there is no consumption. growth implies an unchanging ratio of capital to labor. For this ratio to remain fixed, the capital 6. Effect of an increase in the saving rate stock obviously must grow at the same rate, n, as Output per worker the labor force. But if capital and labor are both growing at rate n, then output must also grow at this rate because of the nature of the production process. Consequently, while a different saving rate would imply a different capital intensity and a different equilibrium level of output per worker, it would not imply a different long-run rate of growth. If the propensity to save were shifted— by policy action, for example—a new equilibrium capital stock per worker would be established, and during the transition to the new equilibrium, the rate of growth of output would be different. But at the new equilibrium capital intensity, the rate of growth of output would once again be equal to the rate of growth of labor. Capital per worker Technical progress can be introduced into the Adapted from Johnson, "Capital Formation in the Long Run." analysis by assuming that labor becomes more productive over time. Labor is then measured in efficiency units, reflecting the labor-augmenting THE OPTIMAL SAVING RATE nature of technical progress. Output and capital are expressed as ratios to labor measured in Alternative saving rates may be ranked accordefficiency units; n represents the rate of growth ing to the pattern of consumption they provide. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Public Policy and Capital Formation 753 As is already evident, one saving rate offers the curvature shown for the production function highest sustainable amount of consumption per around this point is well supported by empirical efficiency unit of labor. That saving rate corre- work. Because that curvature is slight, consumpsponds to a capital intensity from which a small tion falls off very little in a broad range around increase will yield no further change in consump- the point where nk and sy intersect. For examtion; that is, when the increase in output from ple, for the assumed values for capital's share, another unit of capital—the marginal product of labor force growth, technical progress, and decapital—-just equals the additional savings re- preciation rates, an increase in the gross saving quired, n, to maintain the higher capital intensi- ratio from 23 percent to 30 percent would eventuty. If gross output is represented as a Cobb- ally raise the capital stock about 46 percent Douglas function of labor and capital inputs, the above what it otherwise would have been. Bemaximum sustainable consumption per unit of cause of diminishing returns, however, gross labor will be achieved when the gross saving rate output would rise only about 12 percent. Some of equals capital's share of output, usually estimat- this increment would have to be devoted to ed to be about 0.3 for the U.S. economy.1 replacing the increased number of machines Grounds for preferring a lower capital intensi- wearing out. With the assumed depreciation rate ty than that yielding maximum sustainable con- of 5 percent, net output would increase only 6 sumption may exist for two reasons. First, be- percent. Finally, because the labor force is growcause of uncertainty, one may choose to apply a ing and improving, more savings would have to discount factor to future returns, thus favoring be used solely to equip new labor with the higher current consumption. Second, because in bal- levels of capital per labor input, resulting in an anced growth per capita consumption will be increase in consumption of only 3 percent as a growing at the rate of technical progress, it may consequence of increasing the saving rate by be desirable to provide additional consumption nearly one-third. for the relatively poorer current generation at the expense of the wealthier future generations. A range of estimates of the optimal saving rate DETERMINATION OF THE LEVEL can be computed. These calculations provide OF CAPITAL FORMATION only a rough estimate of the optimal saving rate. Assuming a Cobb-Douglas production process To examine means of changing the gross saving and values for the rate of technical progress rate, it is useful to view that rate as determined in (0.02), labor force growth (0.01), and deprecia- a market for saving and investment. To change tion (0.05), as well as a range of values for the proportion of output devoted to capital forintergenerational weighting factors, the optimal mation, the government must shift the saving gross saving rate for the United States is estimat- schedule or the investment schedule or both. ed to be between 20 and 30 percent. Over the Moreover, the effect of such a shift depends on postwar period, the U.S. gross saving rate has the slope of these schedules. For example, variaveraged about 23 percent, so one cannot say ous tax incentives are generally believed to influwith any confidence that the United States saves ence the amount of investment that business will too little or too much. undertake at given interest rates. However, if Although the estimated range for the optimal saving does not respond to changes in interest saving rate is quite broad, sustainable consump- rates, then any increase in investment incentives tion varies little over this range. Figure 6 has will lead only to higher interest rates as busibeen drawn with si as the saving rate that yields nesses bid for available funds. Actual capital maximum sustainable consumption. The slight formation will be limited to the fixed amount of saving. Similarly, an increase in saving will affect capital formation only if investment is responsive 1. A Cobb-Douglas production function may be written to interest rates. Thus a knowledge of the inter- Y = AKAL(UA\ est responsiveness of saving and investment is crucial in evaluating public policy toward capital where Kis output, K is the capital stock, L is labor input, and formation. A and a are constants. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

754 Federal Reserve Bulletin • November 1981 DETERMINANTS OF SAVING makes it possible to increase lifetime consumption by saving more during the working years. To Total saving is the sum of net foreign, private, the extent that the individual is indifferent beand government saving. tween early and late consumption, the incentive International capital flows may either augment to defer consumption in order to augment the or diminish funds available for domestic invest- lifetime total will dominate, and his saving will ment. If capital were highly mobile, a policy rise with interest rates. If, on the other hand, he initiative to enhance saving might increase in- regards late consumption as a poor substitute for vestment abroad rather than at home. Alterna- early consumption, his saving will decrease with tively, an initiative to stimulate investment might increases in the rate of return. draw capital from abroad and allow an increase Because one cannot predict from theoretical in capital per worker even if domestic saving considerations the direction of the response of were unresponsive to changes in interest rates. private saving to a change in the rate of return, The available evidence suggests, however, that this crucial issue must be addressed through presently international capital markets are suffi- empirical work. The previous literature on this ciently segmented that substantial international topic is contradictory. Econometric evidence capital flows are not likely to be induced by U.S. presented in the study suggests that an increase policies aimed at domestic saving and invest- in the after-tax real rate of return would substanment. On the other hand, measurement of the tially increase private saving. This conclusion sensitivity of international capital flows is diffi- must be taken as tentative, however, because the cult, and the evidence is not conclusive. Further- standard errors of the key coefficients are fairly more, segmentation between capital markets large, and values consistent with small or zero may be decreasing. responses to interest rates cannot be ruled out. For this study, the analysis of private saving In addition to the saving of households, private focuses on households and rests on the widely saving includes business saving. Our analysis accepted life-cycle theory of consumption and suggests that the fraction of profits that busisaving. According to that theory, saving arises as nesses keep rather than distribute as dividends is individuals in their working years provide for likely to have little effect on total private saving. retirement, either through their own direct sav- Abstracting from tax effects, in long-run equilibing or through pensions, social security, and the rium, an increase in business saving through a like. reduction in dividends causes the value of the An individual's life may be viewed as split firm to rise by the amount of the forgone divibetween two periods, working years and retire- dend payments, leaving the shareholder's total ment. During working years, the individual re- resources the same. The shareholders therefore ceives wage income, which he allocates between could simply reduce their personal saving by the current consumption and the accumulation of amount of business saving in order to maintain assets to provide for retirement. During retire- the chosen lifetime allocation of consumption. ment, his consumption is financed by earnings on The life-cycle model of private saving provides the assets held and by the proceeds from liqui- a convenient analytical framework to examine dating those assets. Clearly, the allocation of the impact of the tax structure on private saving working-year income between consumption and through its effects on both labor income and the saving will depend on the return to assets—the yield on savings. The personal income tax is less interest rate—and the individual's preferences favorable to saving than are several alternatives with regard to the level of consumption during such as consumption taxes and wage taxes. working years relative to that during retirement. Among these alternatives, only the income tax The interest rate represents the terms on which covers investment income. While a consumption one can trade off present consumption for future tax is subject to a variety of administrative consumption. A higher interest rate makes it difficulties, both a consumption-type, value-addpossible to save less but still achieve the same ed tax and a retail sales tax are fairly easy to level of future income and consumption. It also administer and difficult to evade. The major Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Public Policy and Capital Formation 755 disadvantages of these taxes are regressivity and much today to enjoy the same consumption the short-run inflationary effect at the time of stream in the future. Most researchers believe adoption. that this offset is only partial, even in the long The existing social security system appears to run, because the benefit of tax reductions will fall provide a powerful disincentive to saving. The largely to future generations. Consequently, a life-cycle description of consumer behavior sug- movement toward budget surplus should ingests that saving by workers out of current crease the aggregate saving rate. income will be lower because of anticipated retirement benefits. Social security is a substitute for direct saving by individuals inasmuch as it constitutes an alternative means of providing INVESTMENT DEMAND for retirement. In contrast with saving by individuals and with many private pension plans, The widely accepted neoclassical model was however, payments to the social security system used for analysis of investment demand throughare not currently used to accumulate assets out this study. In that model, to obtain maximum against which the individual can draw in retire- profits, a firm adjusts its mix of factors of proment. Rather, the social security system pays its duction until the value of the marginal product of benefits to the retired with revenues raised by each factor is just equal to the price of the service taxes on the employed. Because the social secu- of that factor. In the case of a capital good owned rity system does not accumulate assets in signifi- by the firm, the firm may be viewed as imputing a cant amounts, the reduction in private saving rent for the services of its capital stock, termed induced by entitlements to retirement benefits is the user cost of capital. The lower the user cost, not offset by a rise in government saving. Unless the more capital-intensive will be the production exactly offsetting changes in voluntary private process used. With this model, the rate of interintergenerational transfers (for example, be- est, the rate of inflation, and the depreciation quests) are induced, aggregate saving is reduced. rate, together with various aspects of corporate Both theoretical considerations and empirical taxation, influence the effective user cost of the evidence suggest that the reduction in saving is capital good. A large body of empirical work substantial: estimates of the actual reduction in strongly supports the predictions of the neoclasprivate saving range from 5 percent to 50 per- sical model, including a significant positive intercent. est elasticity of investment demand. Funding the social security system would sub- Under the existing tax system, inflation has a stantially augment total saving. As a partial step strong, negative effect on investment demand. in this direction, the existing unfunded liability Because the tax system is based on nominal could be held constant; such a funding plan is values, a reduction in the inflation rate not only referred to as incremental funding. Even this would increase investment demand, but also plan would require large increases in social secu- would improve the allocation of investment. Inrity taxes, and full funding would involve much flation alters the incidence of taxation, primarily heavier taxation. It would require a trust fund by reducing the real value of depreciation deduclarger than the existing government debt, forcing tions and by causing capital gains taxes to be the system to become a large holder of private levied against purely nominal gains. Indexation sector debt and possibly of equities also. of capital gains and replacement-cost deprecia- An increase in government saving, in the form tion are often suggested to relieve these probof budget surpluses, is likely to have a positive lems. However, a relatively comprehensive effect on aggregate national saving. However, an treatment of all inflation-induced changes in the increase in government saving may be partially corporate balance sheet would be necessary to offset by a reduction in private saving because avoid introducing new distortions. the decrease in government debt outstanding Because depreciation charges are deductible implies lower future taxes to cover debt service. from income subject to the corporate income tax, As a consequence, households need not save as regulations concerning depreciation allowances Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

756 Federal Reserve Bulletin • November 1981 are important in determining the user cost of 2. Changes in selected tax incentives required to capital. Accelerating the rate at which capital can lower the user cost of capital 5 percent, selected be depreciated reduces its user cost by increas- investments and lifetimes ing the present discounted value of the deprecia- Percent tion deductions. The higher the discount rate, the Before-tax less valuable are the deductions far in the future discount rate Lifetime and tax change (percent) and thus the greater the benefit of accelerating those deductions. Accelerated depreciation is 3 6 9 more valuable for capital assets with long service lives because increases in the ratio of discounted PRODUCERS' DURABLE EQUIPMENT depreciation to project cost are relatively greater 5 years Supplemental investment tax credit1. 2.2 2.3 2.3 than they are for short-lived projects. Reduction in corporate tax rate2 (3) (4) 16 Reduction in statutory service life... (51 (5) 80 Table 2 shows the change from the levels in 10 years 1980 of investment tax credits, corporate tax Supplemental investment tax credit6. 2.2 2.3 2.3 rates, and statutory service lives needed to re- Reduction in corporate tax rate2 (3) (4) 11 Reduction in statutory service life... 90 60 40 duce the cost of capital by 5 percent. The greater 15 years effect of accelerated depreciation on longer-lived Supplemental investment tax credit6. 2.2 2.4 2.5 assets is readily apparent. For example, with a Reduction in corporate tax rate2 (3) 19 7 Reduction in statutory service life... 67 40 33 discount rate of 9 percent, a reduction of 80 NONRESIDENTIAL STRUCTURES percent in service life is needed to reduce capital 20 years costs by 5 percent on equipment with a five-year Supplemental investment tax credit7. 2.8 3.0 3.2 life, whereas a reduction in service life of only 22 Reduction in corporate tax rate 15 6 4 Reduction in statutory service life... 50 30 25 percent will achieve the same result for struc- 30 years tures with a forty-year life. Supplemental investment tax credit7. 2.9 3.2 3.4 Investment tax credits give the firm a tax Reduction in corporate tax rate2 10 5 3 Reduction in statutory service life... 37 27 23 rebate equal to some fixed percentage of qualify- 40 years ing investment expenditures. The percentage re- Supplemental investment tax credit7. 3.0 3.4 3.6 Reduction in corporate tax rate2 8 4 3 duction in the user cost of capital, however, will Reduction in statutory service life... .30 25 22 depend on how far that cost has already been 1. Now 6.7 percent. reduced by the present value of all future depre- 2. Now 46 percent. ciation allowances. Because the present value of 3. Lower corporate income tax rates will raise the user cost of capital. the depreciation allowance is higher in propor- 4. A reduction of the corporate income tax rate to zero will fail to tion to project cost on investments with short achieve a 5 percent reduction in the user cost of capital; the benefit of the higher after-tax return is largely offset by the reduction in the value lives for a given tax credit rate, investment tax of the depreciation allowances. credits have a substantially greater impact on 5. The present value of the depreciation allowances is sufficiently high that it is not possible to increase the value enough to achieve a 5 such investments. The bias of investment tax percent reduction in the user cost of capital. credits toward short-lived assets is also apparent 6. Now 10 percent. 7. NowO. in table 2. At a discount rate of 9 percent, the SOURCE. Adapted from Richard W. Kopcke, "The Efficiency of user cost of capital for a piece of equipment Traditional Investment Tax Incentives," in Public Policy and Capital Formation, pp. 163-75. expected to last five years can be reduced 5 percent with an increase of 2.3 percentage points reduction in the tax rate is partially offset by a in the investment tax credit. To achieve the same consequent reduction in the value of the deprecireduction in capital cost for a structure with a ation deduction. For long-lived assets, this deforty-year life would require an increase in the duction is relatively less valuable and so the investment tax credit of 3.6 percentage points. offset is less. For the same reason, reductions in Of course, the tax credit could be restructured to corporate tax rates reduce the cost of capital increase with project life to a greater extent than more at high interest rates. Again, high discount it already does. rates have already diminished the present value Reductions in corporate tax rates, on the other of the depreciation deduction. As shown in table hand, favor long-lived assets. The benefit from a 2, for a discount rate of 9 percent, the tax rate on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Public Policy and Capital Formation 757 corporate profits would have to be reduced 16 paths for employment, investment, and stock percentage points—that is, from the present 46 and bond issues to maximize the value of its percent to 30 percent—to reduce the cost of equity shares subject to a fixed debt-equity ratio. capital with a life of five years by 5 percent. A A government collects proportional taxes on decrease of only 3 percentage points in the tax personal income, corporate profits, and capital rate is necessary to obtain the same effect on the gains (on an accrual basis). The government capital cost of a structure with a life of forty consumes a constant percentage of gross nationyears. al product and pays out a lump-sum subsidy to consumers. The government must pay for what it purchases but is permitted to borrow or lend. GENERAL EQUILIBRIUM RESULTS The government also operates a social security system, which collects taxes on wage income Evaluating the effects of the various policy mea- and pays out the proceeds to retired persons. sures requires a general equilibrium setting. Be- The system is assumed always to be in balance. cause private saving appears to increase with the When plausible values are specified for its interest rate, an upward shift in investment de- parameters, this model will produce a solution mand will call forth more saving and increase the roughly consistent with current values for the rate of capital formation. The saving schedule U.S. economy. The long-run effect of various may itself be shifted through policy changes policies on the capital stock may then be deteraimed at taxes, social security, and government mined for this model from the deviations they saving. Because investment demand responds induce in the simulations along a balancedinversely to movements in interest rates, the rate growth path. In this model, for example, elimof capital formation will increase in response to inating the social security program (or fully fundoutward shifts in the saving schedule. Because ing it) would raise the capital-output ratio about shifts in either the saving or the investment 25 percent. schedule will—over time—affect the capital in- The simulated effects of changes in governtensity of production and per capita income, the ment tax and spending arrangements are summatotal long-run effects of policy changes must be rized in table 3. Because the government must examined in a long-run growth equilibrium. have revenues to pay for its purchases, any As part of the study, a simulation model was change in a tax or expenditure parameter reconstructed and used to provide rough estimates quires a compensating change in at least one of quantitative effects of alternative policies. The other parameter. The possible variations are model is essentially a neoclassical growth model without limit. Table 3 is constructed for inextended to include a government sector that stances in which the lump-sum subsidy is raises revenues through a variety of taxes. Con- changed to maintain the government's budget sumers (who are numerous and identical) are position. It shows the percentage change in the assumed to have fixed life spans and work for a capital stock resulting from an increase of 1 specified fraction of their lives, living in retire- percent in the policy variable, the associated ment for the balance of their years. Workers are change in the lump-sum subsidy, and the perassumed to allocate income between consump- centage change in the capital stock per $100 tion and saving so as to maximize the satisfaction change in the lump-sum subsidy. The effects of from their lifetime consumption stream. They are more interesting tax substitutions can be deterassumed to prefer present to future consumption mined by considering combinations of policy but are willing to postpone consumption if they changes that would leave the lump-sum subsidy are sufficiently compensated. The strengths of unchanged. For example, consider the effect of these preferences are among the parameters of lowering the tax rate on capital gains and replacthe model. ing the lost revenues by raising the marginal tax rate on income. If the capital gains tax were cut Production is undertaken by perfectly competenough to lower the lump-sum subsidy by $100 (a itive firms and is subject to a Cobb-Douglas 100/35 = 2.9 percent reduction), and the income production function. The firm chooses time Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

758 Federal Reserve Bulletin • November 1981 3. Effect on the balanced-growth capital stock of changing selected policy parameters 1 percentage point Change in capital Change in Change in stock per $100 Parameter capital stock lump-sum subsidy increase in (percent) (dollars per year) lump-sum subsidy (percent) Marginal personal tax rate --..88 110022..00 --..88 Capital gains tax rate --11..33 3355..00 --33..77 Corporate profits tax rate --11..00 3333..00 --33..00 Depreciation rate used for tax purposes 11..99 --3344..44 --55..55 Investment tax credit rate 11..77 --3300..88 --55..55 Inflation rate --11..99 5522..55 --33..77 Government expenditures as proportion of GNP ..22 --115544..11 --..11 SOURCE. Adapted from George R. Moore, "Taxes, Inflation, and Capital Formation," in Public Policy and Capital Formation, pp. 303-26. tax were raised enough to increase the subsidy tral—that is, if the wedges differ—the result is an by $100, the result would be an increase of 2.9 inefficient allocation of capital. percent in the capital stock—the sum of a 3.7 In fact, under the existing law, large discrepanpercent increase and a 0.8 percent reduction. cies exist in before-tax returns required to pro- Table 3 suggests that lower tax rates on capital vide the same after-tax yield to the saver among gains and corporate profits, accelerated depreci- various types of assets. Table 4 displays estiation allowances, increased investment tax cred- mates based on the 1980 tax law of the required its, and reduced inflation rates all yield relatively net real rate of return necessary to obtain a real large increases in capital for a given reduction in after-tax rate of return of 2.5 percent on an revenues. The lost revenues should be offset by a reduction in government expenditures or an in- 4. Net marginal product of capital needed to yield the saver an after-tax real return of 2.5 percent1 crease in tax rates on personal income. Percent Rate of inflation Type of capital (percent) THE ALLOCATION OF INVESTMENT AND THE EFFICIENCY OF THE CAPITAL STOCK 0 5 10 15 Consumer durables 2.5 2.5 2.5 2.5 A suitably chosen saving rate does not in and of Owner-occupied housing 3.5 3.5 3.5 3.5 Rental housing2 4.9 5.9 6.4 6.7 itself guarantee satisfactory economic perform- Noncorporate equipment3 1.7 3.2 4.3 5.2 Noncorporate structures4 5.0 6.1 6.5 6.7 ance in balanced growth. The resulting capital Corporate equipment3 1.4 3.5 5.0 6.1 Corporate structures4 5.4 6.8 7.1 7.1 stock must be efficiently employed if consumption is to achieve its most highly valued path. If 1. This table assumes that the price of all capital goods would rise at the same rate in the absence of different rates of decay. It also capital is being used efficiently, the marginal assumes that capital is held long enough so that capital gains taxes return, net of depreciation, must be the same in have virtually no impact on the required net marginal products. Property tax rates of 1.6 percent on housing, 0.9 percent on equipall uses. If the marginal returns differ, more ment, and 1.9 percent on nonresidential structures are included in the output would be obtained from the same capital calculation. Economic depreciation at geometric rates of 3.4 percent for all structures and 14.2 percent for all equipment is assumed. The stock and labor force by allocating capital to marginal personal income tax rate (including federal, state, and local high-return industries at the expense of low- income taxes) is assumed to be 38 percent; the corporate tax rate is 49.7 percent. return industries. In a competitive economy, 2. Rental housing qualifies for a depreciation allowance using suminvestors will concentrate investment in the uses of-years' digits method over a tax life of 35 years. with the highest after-tax rate of return, and thus 3. Equipment is eligible for an investment tax credit of 10 percent and a depreciation allowance using sum-of-years' digits method over a establish an equilibrium in which the after-tax tax life of 10 years. rates of return are equal across all uses. Taxes 4. An effective tax credit of 5 percent is assumed to apply to structures. The depreciation allowance is 150 percent declining baldrive a wedge between the net marginal product ance over a tax life of 35 years. of capital and the ultimate after-tax rate of return SOURCE. Adapted from Eileen Mauskopf and William E. Conrad, "Taxes, Inflation, and Capital Misallocation," in Public Policy and to the investor. If the tax structure is not neu- Capital Formation, pp. 201-20. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Public Policy and Capital Formation 759 equity investment in each type of capital asset. equipment that is fully eligible for that change. The table shows that, except at very low inflation Finally, the reduction in tax rates in 1964 and rates, capital owned by households is favored by 1965 is found to have increased the share of longthe tax laws: imputed income from such capital is lived structures. not taxed, while interest payments to finance These conclusions have far-reaching conseinvestments and property taxes are deductible. quences. They suggest that, if investors have The required returns for rental housing and busi- indeed equalized real after-tax rates of return in ness capital are substantially higher and rise with all uses of capital, before-tax returns vary widely inflation. For example, if prices were stable, and the existing capital stock is inefficiently investors in rental housing would require a real employed. Specifically, investment in business before-tax rate of return of 4.9 percent to yield a capital has been too low relative to investment in real rate of 2.5 percent, after tax. At a 15 percent household capital. Further, under existing tax inflation rate, the required before-tax rate of law, this bias increases with the inflation rate. return rises to 6.7 percent. Tax incentives in the More total product could be obtained by shifting form of the investment tax credit and accelerated capital from household to business use. The depreciation allowances on business capital par- results suggest that, regardless of the adequacy tially offset the bias against business capital; but of the aggregate capital stock, the country would these offsets are less effective at high rates of benefit from changes in tax laws or reductions in inflation because the value of the depreciation the rate of inflation that would redress this deduction is lower under those conditions. imbalance. Taxes on corporate profits also appear to inhibit business capital formation. Consequently, the tax system favors household and noncorpo- CONCLUSION rate capital, a bias that increases with the rate of inflation. Reducing corporate taxes would pro- Little support has been found in this study for the mote investment in corporate capital, although popular notion that the United States saves too the increase in investment per dollar cost to the little, although that possibility cannot be deci- Treasury might be smaller than the gains from sively rejected. The evidence suggests that, over either greater depreciation allowances or addi- the past three decades, the average U.S. saving tional tax credits. Although proposals for inte- rate has probably not been greatly different from grating the corporate and personal income taxes a rate that is optimal in the sense of providing the face administrative difficulties, the distortions most highly valued stream of future consumption caused by the corporate profits tax are severe per capita. Further, it has been argued that even enough that the integration proposals merit seri- moderately large deviations from the optimal ous consideration. rate have relatively minor consequences for the Finally, table 4 suggests that for rates of infla- standard of living. These conclusions remain tion up to 15 percent, the tax system favors tentative because the underlying theoretical analshort-lived equipment over long-lived structures. ysis necessarily abstracts from a variety of in- That business investment does respond to tractable complications that might significantly these incentives is supported by empirical evi- affect the calculations. dence presented in the study tracing the impact On the other hand, we find compelling eviof changes in tax law on the shares of various dence that the existing capital stock is misallocategories of capital in total investment. Tax cated—probably seriously—among sectors of credits are shown to have increased significantly the economy and types of capital, primarily the share of equipment in business fixed invest- because of distortions due to inflation and U.S. ment, with the greatest effect on shorter-lived tax laws. Specifically, future consumption could equipment. The introduction of asset deprecia- be increased if a larger proportion of investment tion ranges in 1971 is found to have increased the were channeled into business capital, especially share of production equipment, the longest-lived business capital with long service lives. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

760 Federal Reserve Bulletin • November 1981 Therefore, more is likely to be gained by Act of 1981 includes provisions for accelerated reallocating the capital stock than by simply depreciation allowances, increased investment increasing it. Several policy measures are avail- tax credits, and reduced tax rates on personal able that would tend to concentrate new outlays capital gains, along with significant reductions in in business fixed investment and favor capital the personal income tax rate and incentives for with longer service lives—the area in which the personal saving. This program of tax cuts entails economy is at present relatively underinvested. a substantial reduction in total federal tax reve- Among the more attractive measures are the nues. The long-run effect of this legislation on following: capital formation will depend to a great extent on 1. Further acceleration of depreciation allow- what other fiscal changes are made to compenances or the use of replacement-cost deprecia- sate for these lost revenues. If lost revenues are tion for tax purposes. offset by reduced government expenditures, a 2. Increases in investment tax credits focused significant increase in the rate of capital formaon long-lived equipment and structures. tion is likely. If, on the other hand, the level of 3. Reduction in tax rates on both corporate government expenditures is maintained by inand personal capital gains. creasing the government deficit, little increase, 4. Integration of corporate and personal in- and possibly a decrease, is likely to occur in the come taxes. rate of capital formation. In either case, the 5. Reduction of the rate of inflation. provisions of the act can be expected to improve A program including elements of this set of the allocation of capital between businesses and measures was instituted shortly after the comple- households and thereby increase future output tion of this study. The Economic Recovery Tax and consumption. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Public Policy and Capital Formation 761 APPENDIX: PAPERS AND AUTHORS OF Part IV The Demand for Capital PUBLIC POLICY AND CAPITAL FORMATION The Efficiency of Traditional Investment Tax Introduction and Summary Incentives Richard W. Kopcke Jared J. Enzler, William E. Conrad, Tax Policy and the Demand for Real Capital and Lewis Johnson James S. Fralick Inflation, Taxes, and the Composition Part I The Setting of Business Investment Patrick J. Corcoran Capital Formation in the United States: Taxes, Inflation, and Capital Misallocation The Postwar Perspective Eileen Mauskopf and William E. Conrad Dana Johnson Investment and the New Energy Regime Capital Formation and Saving in Major Industrial John A. Tatom Countries Raymond Lubitz Postwar Trends in Corporate Rates of Return Part V The Market for Capital Martha S. Scanion Bank Regulation and the Efficiency of Financial Intermediation Part II Neoclassical Growth Theory John H. Boyd and Myron L. Kwast Small Business Capital Formation Capital Formation in the Long Run David L. Cohen Lewis Johnson Part VI Capital Formation in a General Part III The Supply of Saving Equilibrium Setting The Determinants of Private Saving Inflation, Taxes, and the Capital Stock: Charles Steindel A Long-Run Analysis Tax Design and Individual Saving William E. Conrad and Darrel S. Cohen Wolfhard Ramm Life-Cycle Saving, Social Security, and the Pensions and Capital Accumulation Long-Run Capital Stock Alicia H. Munnell Lewis Johnson Tax Incentives and Private Saving: Eliminating the Tax Discrimination against Some Policy Options Income from Business Capital: A Proposal James S. Fralick John Sturrock Taxes, Inflation, and Capital Formation George R. Moore Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

762 Industrial Production Released for publication October 16 creases also occurred in manufacturing and power equipment. Production of construction sup- Industrial production declined an estimated 0.8 plies was reduced very sharply in September and percent in September, after a reduction of 0.3 is now slightly below that of a year earlier. percent in August. The index for July is now indicated to have risen 0.6 percent rather than 0.3 percent. In September, reductions in output were widespread by major type of goods and by Seasonally adjusted, ratio scale, 1967= 100 industry; large declines were registered in durable goods materials, construction supplies, and durable goods for the home. At 152.1 percent of the 1967 average, industrial production in September was 5.3 percent above the level of a year earlier, but 0.9 percent below the March 1979 peak of the index. In market groupings, output of consumer goods decreased 0.3 percent in September, continuing the decline of the preceding three months. Auto assemblies were reduced VA percent further in September to an annual rate of 6.2 million units; a further and somewhat larger reduction is scheduled for October. Production of durable home goods declined an estimated 1.2 percent, and consumer nondurable goods edged down 0.2 percent. Business equipment declined 0.3 percent in September, after gains throughout most of the year. Transit and farm equipment, which has been reduced over the past several Federal Reserve indexes, seasonally adjusted. Latest figmonths, was cut further last month, and de- ures: September. Auto sales and stocks include imports. Major market groupings 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, GGGrrrooouuupppiiinnnggg 1981 1981 SSSeeepppttt... 111999888000 tttooo SSSeeepppttt... Aug." Sept.* May June July Aug. Sept. 111999888111 Total industrial production 153.3 152.1 .5 .1 .6 -.3 -.8 5.3 Products, total 152.3 151.4 .7 -.1 .4 -.3 -.6 4.0 Final products 151.3 151.0 .9 .1 .3 -.4 -.2 4.8 Consumer goods 149.0 148.5 1.2 -.3 -.1 -.8 -.3 2.8 Durable 142.0 141.3 2.1 .4 -1.0 -3.0 -.5 5.8 Nondurable 151.7 151.4 .9 -.6 .3 .0 -.2 1.7 Business equipment.. 185.3 184.7 .6 .9 .8 .1 -.3 8.2 Defense and space 103.1 103.4 .5 -.3 .9 .5 .3 5.4 Intermediate products.. 155.7 153.0 -.1 -.8 .9 -.4 -1.7 1.2 Construction supplies 143.0 138.2 -.9 -2.1 .5 -.8 -3.4 -.2 Materials 154.8 153.1 .3 .4 .9 -.4 -1.1 7.4 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production 763 Major industry groupings 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, GGGrrrooouuupppiiinnnggg 1981 1981 SSSeeepppttt... 111999888000 tttooo SSSeeepppttt... Aug.P Sept.6 May June July Aug. Sept. 111999888111 Manufacturing 152.7 151.4 .5 -.3 .5 -.3 -.9 5.2 Durable 142.9 141.0 .7 -.2 .3 -.5 -1.3 6.7 Nondurable 166.7 166.4 .3 -.4 .7 -.1 -.2 3.4 Mining 146.3 145.9 .1 4.7 3.5 -.2 -.3 11.6 Utilities 171.3 170.8 1.8 1.2 .2 -1.0 -.3 .1 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. Output of materials declined 1.1 percent in materials dropped about 1 percent, mainly re- September, after a decline of 0.4 percent in flecting a reduction in coal output from the very August. Durable goods materials dropped 1.8 high poststrike levels in August and July. percent, reflecting sharp cutbacks of metals as In industry groupings, output of manufacturing well as reductions in parts for consumer durable industries declined 0.9 percent, with a decrease goods and for equipment. Output of nondurable of 1.3 percent in durable goods manufacturing materials edged up because of increases in the and a decline of 0.2 percent in nondurable goods production of paper and chemicals; most other manufacturing. Production by both mining indusnondurable materials declined, however. Energy tries and utilities was reduced 0.3 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

764 Statements to Congress Statement by Paul A. Volcker, Chairman, Board ranted. But what is important in that connection of Governors of the Federal Reserve System, is not my belief or yours, but whether we persebefore the Committee on the Budget, U.S. Sen- vere in policies and actions to justify confidence. ate, September 16, 1981. The markets are reacting to the harsh reality of continuing inflationary momentum and heavy I am particularly pleased to be here today. It demands for current and prospective financing. provides, first, an opportunity to congratulate More broadly, the markets reflect the hopes and this committee on its leadership in measures forebodings about the future by millions of citialready adopted to begin the process of control- zens as they make investment decisions. The ling the steeply rising trend of federal spending. hard fact is that, repeatedly in the past, efforts to Looking ahead, I would like to consider with you combat inflation, to curb deficits, and to limit the efforts that must continue to be made to monetary growth were not sustained over a long restore sound, noninflationary growth to our enough period to bring success. For all the signs economy, recognizing the relevance to the ob- of progress today, we need to recognize that, in jective of healthy capital and money markets. some respects, the toughest part of the job You are as aware as I am of the difficulties in remains ahead. We also need to recognize that the current economic scene. Many individuals, no safe, painless alternative exists to the fiscal businesses, and municipalities are facing sub- and monetary objectives we have set for ourstantial stresses and strains, and much of the selves; indeed, a sense of retreat not only would discontent focuses on the persistence of extraor- aggravate the present problems, but could set dinarily high interest rates. back the prospects for restoring growth and In this situation, we must not lose sight of the stability for years to come. fundamental cause of our current predicament: In the area of monetary policy, I think we are the buildup of inflation and inflationary pressures all now generally agreed that inflation will not be over many years. A lasting resolution of our brought under control without persistent reeconomic problems generally, and the interest straint on growth in money and credit. History rate problem in particular, will be found only in provides ample evidence that inflation will not success in the battle against inflation. Should we subside, and price stability will not be mainbe diverted from that objective, our economic tained, without confining the longer-term trend and financial problems will only be aggravated. growth of money and credit to amounts consis- The fact is we can now begin to see significant tent with the growth of output. The Federal signs of progress in the fight on inflation. The Reserve has stated its intention to pursue such a various measures of prices this year have all policy of restraint. As I reported to the Congress shown somewhat slower rates of increase than in in July, we are reasonably on track in achieving the preceding two years. While some sectors of our reduced money supply objectives this year. the economy are indeed under heavy pressure, We also recognize that in the years ahead growth the overall level of economic activity is higher, in money and credit will need to be further and the rate of price increases lower, than almost reduced. all economic forecasters thought probable at the In a situation of inflationary momentum and beginning of the year. rising costs, monetary restraint, however neces- Under the circumstances, it may be frustrating sary, is not an easy process. I must also quickly to observe the skepticism and doubts reflected in point out that the alternative of trying to accomthe recent performance of many financial mar- modate the provision of money to inflationary kets. I believe that skepticism will prove unwar- demands could only be more painful over time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

765 We have learned the hard fact that we cannot live result of that would be to incite further borrowcomfortably with inflation, that it only under- ing and ultimately damage savings as well. Nor mines our growth potential, and that it will can a "solution" be found by trying to ration inevitably bring higher, not lower, interest rates. scarce credit and savings by some arbitrary and What we as a government can do is to relieve ultimately unenforceable system of credit conthe pressures on the credit markets, on monetary trols; indeed, efforts by borrowers to protect policy, and on the economy growing out of our themselves and consequent market disruptions fiscal imbalance. As you are well aware, the would likely only make the situation worse. administration and the Congress have taken very What can be done—and done consistent with large steps, in a remarkably brief period of time, our short- and longer-run objectives—is to proto stabilize and reduce the federal tax take rela- vide assurance that the federal fiscal position is tive to national income. Indeed, as a percent of indeed clearly on the track toward balance. On gross national product, revenues should fall by the spending side of the fiscal equation, the more than 2 percent by 1984, reversing the climb Congress and the administration have begun an to a postwar peak of more than 21 percent in effort unprecedented in my Washington experirecent years. Looked at in isolation, the new tax ence to scale back the growth of federal outlays. law offers the prospect over time of improving At the same time, it is evident that, given the size the environment for business and personal sav- of the tax reduction, the spending cuts made so ing and investment. Investment incentives far—large as they may be in historical perspecshould be strengthened by the capital cost-recov- tive—have been only a "downpayment" on ery provisions; the lowering of marginal tax rates those needed to bring expenditures into alignin the top bracket and the accompanying reduc- ment with the receipts side of the budget. The tion of capital gains taxes should help to increase administration budget estimates presented to the the availability of venture capital; and incentives Congress during the debate on the tax bill always for productive activities—for saving, working, assumed a large amount of as yet unspecified and risk-taking—should all be enhanced. cuts for the fiscal years ahead. Those estimates But we cannot escape the fact that tax changes have themselves been based on relatively optialso involve a large loss of revenue in the years mistic economic assumptions. As I understand immediately ahead; receipts will be about $80 it, in voting tax reductions by large majorities, billion less in 1984 than at the existing GNP-tax the Congress accepted the challenge of cutting ratio, and about $150 billion lower than the the spending suit to fit the revenue cloth. preexisting tax rates would have produced at the Failure to carry through on efforts to slow the same level of income. There are, of course, two growth of federal expenditures in amounts comsides of the budgetary equation, and we start mensurate with the need would leave us with the from a position of a large deficit. Without spend- reality and prospect of large deficits in relation to ing restraint in place alongside tax reduction, the our savings potential, with its inevitable implicafederal government will continue to preempt a tions for financial markets and for sectors of the large fraction of one of our scarcest resources— economy dependent on credit. The harsh fact is savings. Then, the most credit-dependent sectors that the past track record has not been encouragof the economy would inevitably remain particu- ing; the federal budget has been in deficit in all larly vulnerable, just as they are today, in effect but 1 of the past 21 years. More often than not, left with the crumbs from the national economic deficit forecasts have been successively enlarged table. And even businesses directly benefiting with each new estimate. It is the doubts arising from tax reduction and new incentives will find out of this experience that, it seems to me, lie themselves in strong competition with the gov- behind much of the market skepticism. ernment for available savings, blunting the very More generally, our patience has been tried by objectives sought. efforts to deal with inflation, and past efforts The problem—which, of course, manifests it- have been relaxed prematurely. Doubts that inself in exceptionally high interest rates—will not, flation will be brought under control continue to and cannot, be solved by inflationary money and act perversely as an incentive to borrow; for credit creation by the Federal Reserve. The net their part, lenders remain reluctant and want to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

766 Federal Reserve Bulletin • November 1981 protect themselves against the prospect of de- 2. International comparisons of saving1 clines in the real value of their assets. Thus, even United Nations system of national accounts basis; in conditions in which the economy as a whole is percent of gross domestic product sluggish at best, we have had strong inflation- 1975-79 average generated demands for credit pressing against Country Gross Net constrained supplies, which only serves to push saving saving2 up interest rates. 20.8 10.1 Aside from these expectational effects, the 32.0 19.0 22.8 11.6 direct impact of budget deficits on the market Italy 22.2 12.2 seems to me evident in the data. Net of capital 23.0 11.8 United Kingdom 18.0 6.8 consumption allowances—that is, the amount United States 17.2 4.9 necessary to maintain the present stock of busi- 1. All country data are reported according to the United Nations ness investment and housing—we generated system of national accounts, which differ from the U.S. NIPA. Details about $170 billion of savings last year, reflected may not add to totals because of rounding. 2. Gross saving less capital consumption allowances. largely in retained earnings of business, personal savings, and state and local pension fund contri- SOURCE. Organisation for Economic Co-operation and Development, National Accounts of OECD Countries, 1962-1979 (volume II). butions. That is what we have at current levels of income to add to our plant and equipment, to inventory, and to housing—and to finance the I would quickly add that the effect of a deficit federal government deficit. As shown in table 1, on the economy and capital markets can only be the financing required by the combined unified judged in the context of a particular economic deficit and off-budget federal financing totaled situation. There may be relatively little risk of more than $80 billion, nearly half of the total "crowding out" in a period of high actual or available. potential savings, falling investment demands, The point is often made that, relative to our adequate homebuilding relative to demands, and GNP, our budget deficits are relatively small by low interest rates. But that situation is surely not international standards. So they are. But so are the circumstances of today, in which we have a our savings, and it is the relation between the clash in the market among competing demands. two that counts. (See table 2.) The essence of my comments today is simple. Intense financial pressures are being exerted on many firms and individuals. We would all like to 1. Sources of saving in the United States' see relief from those pressures as soon as possi- National income and product accounts basis ble—and we don't want them to recur. Ultimate- 1975 -79 1980 ly, prevention of a recurrence is dependent on Item Billions Percent Billions Percent dealing with inflation—and policies that do not of dollars of GNP of dollars of GNP recognize that reality can only prolong the pain, Gross national saving2 353.3 18.1 457.2 17.4 whatever their surface appeal. Ne C t a n p a i t t i a o l n c a o l n s s a u v m in p g t 2 i on 2 1 0 5 1 2. . 3 0 1 7 0 . . 8 3 2 1 8 6 7 9 . . 2 9 1 6 0 . . 5 9 Dealing with inflation, in turn, requires re- Personal 82.7 4.2 101.3 3.9 straint on growth of money and credit. Entirely Corporate 47.0 2.4 44.3 1.7 Other 22.6 1.2 24.3 .9 consistent with such restraint, reduction in feder- M Fe E d M er O a l government deficit3 al deficits—and the perception that those reduc- (unified plus off-budget) . -60.9 -3.1 -83.4 -3.2 tions will be continued until balance is reached— will greatly help to relieve market pressures and 1. All rates are calculated as the average value of item for the period, divided by the average value of GNP. Details may not add to to make room for the investment and housing we totals because of rounding. want. 2. National income and product account (NIPA) gross saving excluding NIPA federal surplus (or deficit) plus net foreign investment I can appreciate the irony, from your point of (sign reversed). view and mine, of some recent financial market 3. The federal deficit on an NIPA basis averaged $42.6 billion in 1975-79, 2.4 percent of GNP, and was $61.2 billion in 1980, 2.3 developments. Amid encouraging signs of progpercent of GNP. The off-budget deficit alone averaged $9.7 billion in ress on inflation, with your strong efforts toward 1975-79 and was $15.3 billion in 1980. control of expenditures, and with firm monetary SOURCE. U.S. Department of Commerce, Bureau of Economic restraint in place, the markets seem to be ex- Analysis, national income and product accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 767 pressing doubts. But after all, Americans have debilitating inflation in our entire economic hisnot seen for many years a successful fight on tory. The lesson is clear—we must carry forward inflation or balanced budgets or so massive a tax on the basic fiscal and monetary course on which reduction. A lot of bets on the future are still we have embarked. To do less not only would being hedged against the possibility that you, and throw aside the signs of progress we are seeing, it we, will not carry through. would inevitably make even more difficult an We have been at critical junctures before in the attack on inflation in the future, with all that fight on inflation—and the bleak reality is we would imply for our economy and our society. have not had the foresight and the courage to We mean to do our part, and I am sure we can stay the course. That is why we have gradually count on this committee to carry on the effort it come into the grip of the most prolonged and has started so well. • Statement by Frederick H. Schultz, Vice Chair- have higher ratios of debt to equity, and the man, Board of Governors of the Federal Reserve interest on the debt of small firms likely absorbs System, before the Committee on Small Busi- a relatively larger portion of cash flow than for ness, U.S. Senate, September 23, 1981. similarly situated larger firms. The squeeze on cash flows of smaller firms can be especially I appreciate the opportunity to participate in this intense if competitive pressures and sluggish hearing on the impact of high interest rates on demand prevent them from passing along the full small business. Driven principally by rapid and cost of higher interest rates to their customers. persistent inflation, interest rates have been at 2. Small businesses tend to rely on commerextraordinarily high levels through much of the cial banks to meet their credit needs. This sugpast several years, causing serious problems for gests that the impact of high interest rates on the many sectors of the economy. sector depends to a great extent on the cost and Because small businesses account for the vast availability of loans at banks and on the relationmajority of the firms in this country today and ships between small businesses and their banks. operate in all areas of the economy—in both a 3. Direct information on the terms of bank geographic and a business sense—not surprising- loans made to businesses of different sizes is not ly they are feeling the effects of the high rates. available, but data from the Federal Reserve Moreover, small businesses may be more vulner- Board's Survey of Terms of Bank Lending show able to the adverse consequences of credit strin- that rates on small loans have risen less than gency than larger firms. Recently, Chairman those on large loans over the past several years. Volcker sent a report on the impact of high Moreover, in recent surveys, the average levels interest rates on small business as well as on the of rates on small loans at small banks, the type auto, housing, and agricultural sectors to the usually made to small businesses, have been Senate Committee on Banking. I have submitted generally about the same or even lower than the that report with my statement, and as a basis for rates charged on larger loans at large banks. Of discussion at this hearing, I would like to high- course, these data do not reflect the ability of light and elaborate on some of the major points large businesses to reduce borrowing costs by made in it concerning small businesses.1 accessing other markets, where rates at times 1. Small businesses typically depend relative- may be more attractive. ly more on debt financing than larger firms 4. Problems of credit availability do not apbecause their sources of equity capital are more pear to have worsened markedly for small busilimited. As a result, small businesses tend to ness this year. This is in contrast to earlier periods of high interest rates, when lending at 1. The attachment to this statement, "The Impact of High banks—especially small banks—was severely Interest Rates on the Housing, Automobile, Agriculture, and constrained by difficulties in attracting funds Small Business Sectors," (September 1, 1981) is available on because of limitations on interest rates on deposrequest from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. its. In these circumstances many small busi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

768 Federal Reserve Bulletin • November 1981 nesses encountered trouble obtaining credit at bank lending activity associated with mergers any price. More recently, with restraints on the among some very large firms. The loans and rates banks can pay somewhat more relaxed, commitments involved are extremely large, and most small businesses have access to credit, if some have concluded that funds advanced for they are willing to pay the price. In addition, a this purpose will not be available for any other number of banks throughout the country report- use—such as for lending to smaller businesses. edly have been making special efforts to be more In my view, any effects from this activity are flexible in meeting the needs of small businesses, easily exaggerated. First, the volume of credit a practice that the Federal Reserve System has involved is not that large relative to total flows; consistently encouraged. the actual amount of loans taken down for take- 5. Although I am confident that our assess- over purposes appears to be much less than the ment of the current status of bank lending to reported credit lines, in part because a number of small businesses is reasonably accurate in broad the lines were related to the proposed takeover outline, we are aware of our lack of more de- of the same company. Second, and more importailed knowledge of this crucial relationship. In tant, these loans and the transactions they fithat regard, the Board, in conjunction with the nance do not in any fundamental sense use credit interagency task force on small business finance, in such a way as to make it unavailable to other is in the process of conducting a personal inter- borrowers. The actual transactions involved in view survey with lending officers at 250 banks the mergers merely result in a transfer of finanthroughout the country on lending practices by cial assets; the acquiring company borrows moncommercial banks to small businesses. The inter- ey from the bank to pay the stockholders of the views include questions on availability of credit acquired company. The stockholders then likely to small businesses, loan characteristics, pricing reinvest the money or repay debt, recycling the and profitability, and use of government pro- funds through the financial markets. I recognize grams. The information gathered from the inter- that in the short run these loans could have some views will give us further insight into the effects impact on the distribution of credit, possibly of current credit conditions on small business. A affecting its cost and availability for other bank report on the results will be sent to the Congress customers. But I believe that in a freely operatin early 1982. ing financial system any distortions of this sort 6. Finally, I am encouraged by reports that are likely to be small and short-lived. many firms are learning to cope with the adverse The problems facing small businesses are not financial and economic environment through related to takeover lending; they are not even such means as improving their product-pricing caused in the most fundamental sense by high strategies, cutting costs, reducing inventories, interest rates. Rather, the principal source of the and managing cash more closely. Nonetheless, current difficulties is the extraordinarily high and the large increase in bankruptcy filings since persistent level of inflation our country has expeearly 1980 is an indication of the difficulties being rienced in recent years. Inflation has a very experienced by a number of small businesses. Of direct and immediate effect on the entire cost course, the bankruptcy numbers reflect prob- structure of industry. Increases in labor and lems not only related to high interest rates, but other input costs likely have a much greater also to inflation and sluggish economic activity, impact on the earnings of small businesses than as well as the liberalization in the bankruptcy do rising interest rates. Recognizing this fact, code that became effective October 1979. small businesses until very recently have identi- In sum, small businesses, along with larger fied inflation, not credit costs, as their principal businesses, households, and many lenders, are problem. facing a very trying situation, the proximate Moreover, high interest rates themselves are cause of which seems in large measure to be high primarily a necessary and unavoidable conseinterest rates and intense competition in the quence of rapid inflation, augmented under curcredit markets for a limited supply of funds. rent circumstances by anticipation of large feder- Moreover, many have asserted that this situa- al deficits. Only in recent months have price tion can only be worsened by the recent surge of increases shown significant moderation from the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 769 double-digit rates experienced in the last two resulting from a substantial federal deficit put years. The virulence of actual inflation and ex- upward pressures on interest rates for private pectations that it will continue at a high rate have borrowers—including small businesses. I believe prompted lenders to demand interest rates high it is critical, therefore, that the Congress and the enough to compensate for the declining purchas- administration work to reduce the federal deficit ing power of the dollars they lend. Expectations promptly and substantially. Combined with the of price increases also weaken borrowers' reluc- Federal Reserve's monetary policy, the reductance to pay high interest rates. The impetus tion in the federal deficit would minimize the needed for a significant and lasting decline in strains on our economy and financial markets interest rates is a continuing slowdown in the and reduce the length of the adjustment process actual rate of inflation and a conviction by both needed to bring down inflation and, with it, borrowers and lenders that those making mone- interest rates. tary and budget policy will not allow the rate of We at the Federal Reserve are acutely aware price increase to reaccelerate. of the difficulties that have beset small busi- Because of the problems inflation has brought nesses in recent years. At the same time, we to our economy, it is imperative that the govern- think it is noteworthy that small businesses genment implement policies that focus on bringing erally have been among the strongest and most the inflation rate down—and keeping it down. steadfast supporters of the Federal Reserve's For its part the Federal Reserve has been seeking policy of moderating expansion of money and a gradual moderation over the longer run in the credit. This is because they recognize that such a growth of the money supply. As this policy bears course—however painful in the short run—is a fruit, we are confident that the result will be necessary precondition to the overriding goal of reduced pressures in the credit markets and an returning our economy to a path of steady nonineventual decline in interest rates. flationary growth. We are beginning to see some We realize that the adjustments required will indications that inflationary pressures are beginbe painful; we should not expect the reversal of a ning to abate. It is vitally important that we avoid 15-year trend of accelerating inflation to be ac- the temptation of opening up the monetary spigot complished quickly and without unpleasant side to obtain temporary relief from high interest effects. The process of adjustment to a noninfla- rates—relief that could come only at the expense tionary environment can be made less painful, of our long-run progress toward reducing inflahowever, if the Congress and the administration tion. Turning away from a disciplined monetary hold down federal government spending. The tax policy would be unsound, unwise, and unfair cuts that already have been legislated need to be because it would mean that nothing would have balanced by additional expenditure cuts. If fur- been gained, despite the difficulties already enther spending cuts are not made, pressures in dured, and that greater dislocations and more financial markets will remain very strong. Large intense pain would necessarily be suffered at borrowing requirements by the public sector some point in the future. • Statement by Henry C. Wallich, Member, Board to the subcommittee a great deal of information of Governors of the Federal Reserve System, on this subject from our files over the past year, before the Commerce, Consumer, and Monetary and your letter raises a number of questions Affairs Subcommittee of the Committee on Gov- regarding this material. Questions of a statistical ernment Operations, U.S. House of Representa- nature are covered in the attachment to this tives, September 23, 1981. testimony.1 As available data have become progressively better and more complete, some sta- I am pleased to testify on the evolution of investments by the Organization of Petroleum 1. The attachment to this statement is available on request Exporting Countries and the effects of such from Publications Services, Board of Governors of the Federinvestments. The Federal Reserve has supplied al Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

770 Federal Reserve Bulletin • November 1981 tistical questions have diminished, and some on international banking and the international policy issues have become of less immediate financial system. As the situation has developed, concern. In my testimony, I shall review the it is clear that until now the problems of coping evolution of the OPEC surplus and the effects of with the effects of increased oil bills—high infla- OPEC investment decisions on financial markets tion, depressed activity, efforts to restrain oil and the banking system. consumption, and rising debts to finance oilrelated deficits—have been more serious than any problems that have been associated with the EVOLUTION AND IMPACT investment of OPEC reserves. OF THE OPEC SURPLUS The Federal Reserve staff estimates that, over INVESTMENT OF THE OPEC SURPLUS the seven years from 1974 through 1980, OPEC had a cumulative current account surplus of Our experience with OPEC investment decisions almost $350 billion. This figure includes public over the past seven years has shown that these transfers from OPEC countries to other coun- investments have not disrupted financial markets tries and thus is somewhat smaller than the substantially. Moreover, information about these cumulative surplus on goods, services, and pri- investments has improved over the years. vate transfers alone. By and large, while individual OPEC countries Over the years, the OPEC current account may tend to concentrate on one broad type of surplus has gone through several distinct peri- investment in preference to others, OPEC inods. The increase in the price of oil from less vestments in the aggregate have been quite widethan $3 per barrel in 1973 to around $11 per ly distributed. barrel in 1974 produced a current account sur- Our information on OPEC investments comes plus of $70 billion in 1974. In the next four years primarily from reports by U.S. financial instituthe price of oil rose much more slowly while tions and from the Bank of England, whose data OPEC imports continued to increase rapidly. and estimates have been published by the Bank After being in the range of $30 billion to $40 for International Settlements (BIS). The quality billion in 1975-77, the OPEC current account of the data has improved considerably in recent surplus disappeared in 1978. The renewed oil years. As a result of these improvements in the price increases in 1979-80 raised the price from data, we are now able to account for virtually all $13 per barrel to the range of $30 to $40 per of the OPEC surpluses. For example, our earlier barrel, and the OPEC surplus has reemerged estimates of total OPEC investments in the six larger than ever, reaching more than $100 billion years from 1974 to 1979, which in the aggregate in 1980. This year the surplus has diminished as totaled $240 billion, contained an unidentified oil demand has weakened and OPEC imports component of more than $70 billion—30 percent have risen further; our staff projections suggest of the total. Now, using the improved informathat the 1981 surplus will be about two-thirds that tion published by the BIS, we estimate the of last year. aggregate unidentified component at $8 billion Because the OPEC countries have had an for those six years combined (only about 3 aggregate current account surplus in the past percent of the total). Most of the reduction in the seven years, the rest of the world in the aggre- unidentified component comes from improved gate has had a current account deficit. The reporting of OPEC investments in continental uneven distribution and uncertain financing of Europe, Japan, and developing countries, rather this deficit have been a major source of economic than from OPEC investments in the United States. strain for many oil-importing countries. The published data identify the main types of When the OPEC surplus emerged on an enor- OPEC investments over the years. For the perimous scale in 1974, concerns were expressed od 1974-80, a little less than 20 percent of the both about the ability of oil-importing countries cumulative OPEC current account surplus was to deal with their sharply higher oil bills and invested in the United States, mostly in U.S. about the effects of OPEC investment decisions Treasury and other securities. Another 40 per- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 771 cent of the total has gone into Eurocurrency rapid changes in dollar reserves of industrial deposits and other bank deposits in industrial countries that were associated with intervention countries; the remainder was invested in a vari- in foreign exchange markets. In principle, the ety of forms in several locations. same sort of effect on relative interest rates could Our information on the investment strategies be produced if OPEC investments were concenof OPEC countries is based primarily on the trated in, or withdrawn from, any single type of regular statistical reports that I have already asset. In fact, as I have already noted, OPEC mentioned. In some cases, these reports can be investments have been spread over a range of supplemented by qualitative information from financial assets, both in the United States and in press reports or market sources. Available statis- overseas financial markets, and we have no tics show that most OPEC countries invest evidence to suggest that OPEC placements have heavily in short-term instruments—about half of had a significant impact on relative interest rates the total OPEC surplus of the past seven years on different assets in the United States or on has been placed in securities with maturities of differentials between U.S. and foreign interest one year or less. Published BIS figures show rates. clearly that Iraq and Venezuela hold large OPEC investment decisions are also capable amounts of bank deposits outside the United of affecting exchange rates. However, it should States, as do Kuwait and Saudi Arabia. On the be emphasized that exchange rates have been other hand, Kuwait is known to have purchased affected primarily by other factors. In particular, equity securities and real estate as well, and the sharp exchange rate movements that have Saudi Arabia has purchased longer-term govern- occurred in the past year—notably the appreciament securities and some lesser amounts of tion of the dollar relative to the German mark corporate securities and notes. and other continental European currencies—essentially reflect developments in the major industrial economies and their financial markets. EFFECTS OF While funds of OPEC investors are large, these OPEC INVESTMENT DECISIONS funds are only part of the enormous volume of financial resources involved in international fi- OPEC investment decisions have had far less nancial transactions. To the extent that shifts of impact on the economies and financial markets in OPEC funds do affect exchange rates, the impact the rest of the world than have the inflationary would be the same as that of shifts of similar consequences of OPEC oil-pricing policies. In magnitudes from other sources. In that connecprinciple, we would not expect OPEC invest- tion, bear in mind that U.S. exports and imports ments to affect significantly the general level of are each running at a rate of $20 billion per dollar interest rates, which is determined primar- month, and Japanese and German exports and ily by financial and economic conditions in the imports at $10 billion to $15 billion per month. A U.S. economy. Moreover, the levels of U.S. decision by international traders to shift the monetary aggregates are the result of Federal pattern of trade financing by one month—for Reserve policy decisions, and cannot be thrown example, delaying payment for one country's off course by OPEC investments. imports for 30 days and accelerating receipts of Broadly speaking, whether OPEC investment exports—would produce very large flows of decisions affect the prices of particular financial funds. assets and the interest rates on those assets Anecdotal evidence suggests that OPEC coundepends on whether OPEC preferences for finan- tries as a practical matter adjust the composition cial assets differ from those of other investors. At of their foreign currency reserves by directing times in the past, we have observed that interest new receipts into the desired currency, rather rates on U.S. Treasury bills have shifted relative than by drawing down existing investments and to other U.S. money market rates when large transferring the proceeds into assets denominatforeign official purchases or sales of Treasury ed in another currency. This practice tends to bills occurred. These temporary influences on minimize any disruptive effects on foreign ex- Treasury bill rates were usually the result of change markets, which OPEC countries recog- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

772 Federal Reserve Bulletin • November 1981 nize would likely result in large capital losses on replaced by surpluses. The country-by-country their financial assets. pattern of such shifts would be difficult to antici- The fear, which was often expressed in the pate; in 1978 Germany and Japan experienced mid-1970s, that OPEC would seek to shift rapidly large current account surpluses. from one currency to another has not been As I have indicated, a slowing of the price rise realized. In general, OPEC countries have acted for oil and a corresponding reduction in the as rational investors that are interested in pre- OPEC current account surplus would have an serving and adding to their capital, and on occa- important beneficial effect on the economies of sion OPEC investments have contributed to sta- industrial and developing countries alike. Conbilizing exchange rates—for example, making tinued growth in OPEC imports would help oilsizable investments in Germany and Japan in the purchasing countries move to more sustainable past year or so when Germany has had a current external payments positions, particularly if these account deficit and the mark and yen have depre- developments occurred in a period when indusciated. On the whole, OPEC does not appear to trial countries generally had excess capacity and pose special problems for the multicurrency re- inflationary pressures were slowing. serve system. We should, of course, be alert to A sharp decline in the overall OPEC surplus the possibility that politically motivated actions would doubtless mean that some OPEC counby an OPEC country could lead to disruptions, tries would become borrowers on an increasing but this possibility is not limited to OPEC coun- scale and would also draw down their reserves. tries. Because Saudi Arabia accounts for a large share OPEC investments could have the greatest of the present OPEC surplus, a shift in its potential for being disruptive if they were made position sufficient to eliminate its surplus and to without regard to their market impact. In a "thin result in a major drawdown of Saudi reserves market" an effort to place large sums could would appear to be a remote possibility. Instead, produce exaggerated price movements, and in I would anticipate that in coming years Saudi fact over the past years we have seen dramatic Arabian reserves would grow at a slower pace swings in the prices of a number of commodities than in recent years, and that its development as investors have moved in and out. But these policies would be adjusted to the new circumswings were not the result of OPEC decisions, stances. However, some countries with smaller and evidence suggests that, by and large, OPEC oil exports may be running down their reserves is interested in making profitable investments in in the period ahead. broad, liquid markets, rather than seeking to bid up the price of assets in more specialized markets. Thus, these countries appear to be follow- SIGNIFICANCE OF OPEC INVESTMENTS ing investment policies designed to assure a FOR THE BANKING SYSTEM source of foreign earnings against the day when they may have to rely less on current receipts The large volume of OPEC funds that has been from oil. invested in bank deposits has focused public As you know, evidence is mounting that the attention on the role of the commercial banking OPEC surplus will decline from the 1980 peak of system, both as an outlet for investment and as a more than $100 billion, although based on the source of funds for lending to oil importing latest available estimates it would be premature countries. Banks have played a major role in the to conclude that the surplus will soon disappear. recycling of OPEC surpluses, but we need to The experience of 1978 provides an illustration ensure that the recycling process does not result of the economic effects of a declining surplus. in an overloading of the commercial banking OPEC purchases of imported goods and services system. In part, this can be achieved by making continued to grow, while OPEC receipts from oil alternatives available to commercial bank lendwere little changed. Industrial countries experi- ing—through the International Monetary Fund enced increased exports and strengthened de- and other international organizations as well as mand, and current account deficits of most oil through credits from national governments, inimporters were reduced and in some instances cluding those of the oil exporting countries. And Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 773 in part we can avoid an overloading through our considered closely by bank management. The supervisory procedures. significance of a particular ratio of loans to One of the foundations of our bank superviso- capital depends on the overall position of the ry process is the principle of diversification, country, the nature of the lending (whether which is appropriate both on the deposit side of short-term trade financing or longer-term credthe balance sheet and on the loan side. The its), the identity of the particular obligor, and Federal Reserve System examination report con- collateral. In a recent speech I noted that the tains a schedule that shows large deposits as a number of banks with exposures of more than 30 percentage of the bank's total deposits. Examin- percent of capital in developing countries has ers review the accounts of large depositors to jumped substantially during the past 18 months. I analyze their maturity structure as it might affect regard that not as a sign that the system is a bank's funding operations, although informa- breaking down, and certainly not as a sign that tion on individual accounts is not included in the banks have overstepped prudent boundaries, but examination report. rather as a situation that bears careful watching. I should note that OPEC deposits do not That, of course, is the essence of prudent bankappear to represent an unduly high share of the ing. deposits of U.S. banks in general, or of the large Your letter refers to a point that has been of U.S. banks. Deposits of Middle East oil produc- concern to me—that the margins on syndicated ers represent less than 5 percent of total deposits international credits have declined to the point at of the largest U.S. banks, and much smaller which banks may not be covering the risks percentages for other large banks. The major involved and also obtaining an adequate return banks that accept large amounts of deposits from on capital. While margins on some Euroloans OPEC are generally aware of the desirability of have been increased for particular borrowing maintaining diverse sources of funding. Banks countries over the past year, some widening of with high levels of OPEC deposits frequently margins generally would appear appropriate if have systems to monitor the levels and move- banks are to continue to provide sizable amounts ments of those deposits. In some cases, banks of funds to borrowing countries. set limits on the amount of deposits they will The shortage of bank capital is one potential accept from any one source. Banks may occa- impediment to expansion of international loan sionally refuse deposits from a large depositor, portfolios of banks at a rate sufficient to keep although they are more likely to discourage de- pace with the credit demands of oil-importing posits by offering low rates. countries. One way of conserving capital that The fact that U.S. banks participate actively in appears promising would be for banks to act as the international interbank markets is a valuable brokers instead of lenders of funds, arranging element of insurance against sudden deposit loans for OPEC investors for a fee, with the withdrawals by one or several major depositors. investor bearing the credit risk. Prototypes for When such withdrawals have been made, the such techniques may be found in the United funds have been redeposited in another interna- States, where banks have created mortgagetional bank, which then has funds available for backed, passthrough securities, and in Switzerlending to the U.S. bank that suffered the deposit land, where banks provide funds through trustee loss. accounts. Both techniques have the effect of With respect to lending, international or do- economizing on bank capital and of taking admestic, diversification of portfolios is an essen- vantage of the banks' expertise in international tial element of prudent banking, and the country financing. I have no direct knowledge that OPEC exposure system of the three federal bank super- countries would be receptive to such an apvisory agencies is based on this principle. Under proach, but in the interests of selling their oil, that system, the exposure of individual banks to they might at some point be prepared to extend particular countries is measured against the capi- some credit in this fashion, particularly if the tal of the bank. The ratio to capital is not a arranging bank were also to participate in the limit—voluntary or otherwise—but rather a sig- credit. Conceivably, a developing country might nal that the position of the bank should be be willing to do what developed countries have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

774 Federal Reserve Bulletin • November 1981 firmly resisted—indexing debt securities issued administration of the discount window. The large to OPEC investors. This indexing (presumably money market banks that are engaged in internausing a price index related to the currency of the tional lending would be expected to make use of loan) could be accompanied by a very moderate their other sources of liquidity before coming to interest rate, and the combination would consti- the Federal Reserve for liquidity assistance. In tute a positive rate of return. developing policies regarding such emergency In closing, let me comment briefly on concerns assistance, the Board has not believed it would that are sometimes voiced regarding contingency be useful to set quantitative limits or targets for plans in the international banking environment. the amounts of the assistance. Instead the The Federal Reserve makes loans to solvent amounts would be determined in light of circum- U.S. banks on the basis of sound collateral. The stances at the time and in conformity with Board Board has established guidelines to aid in the guidelines and statutory responsibilities. • Statement by Frederick H. Schultz, Vice Chair- to Committee members, the policy discussion, man, Board of Governors of the Federal Reserve and the factors influencing the views of mem- System, before the Domestic Monetary Policy bers. The votes of all FOMC members are re- Subcommittee of the Committee on Banking, corded. Information on current monetary policy Finance and Urban Affairs, U.S. House of Rep- is also provided to the Congress through the resentatives, September 29, 1981. Board's semiannual reports under the Humphrey-Hawkins Act and the Chairman's frequent I am pleased to appear before this subcommittee testimony before congressional committees. on behalf of the Board of Governors to testify on In early 1976, the FOMC discontinued its longproposed legislation dealing with the public re- standing practice of having its staff prepare delease on a deferred basis of the minutes of the tailed accounts of each meeting. Such reports— Federal Open Market Committee (FOMC). The referred to as memoranda of discussion—were bill that has been introduced, H.R. 4478, would originally intended solely as internal working amend the Federal Reserve Act to require that documents, but during 1964 a decision was detailed minutes be kept of FOMC meetings and reached to make them available to the public that views expressed at such meetings by any after a five-year lag. Over the years little demand member of the Committee be attributed to that had arisen for access to the memoranda of dismember. cussion by scholars, the press, or others. There- The Board sympathizes with the concerns that fore, the FOMC questioned the desirability of underlie this proposal and has no objection to continuing to incur the high costs of preparing publication of FOMC minutes in accordance this document. A growing concern that early, with the provisions of H.R. 4478. The proposed and possibly immediate, disclosure of the memolegislation makes clear that no portion of the randa of discussion would be required was anminutes may legally be released before a speci- other consideration underlying the FOMC decified minimum period of about four years after the sion to discontinue the document in early 1976. calendar year in which the meeting occurred and At the same time, the FOMC recognized its that references to sensitive international finan- obligation to provide thorough and timely inforcial developments can be screened by the FOMC mation on its decisions and on the views presentand withheld for additional periods if that is ed by members in the course of the policy deemed advisable in the national interest. discussion. Thus, at the time the memoranda of discussion were discontinued, the policy record The public already receives very current inforprepared for each meeting was expanded to mation on the eight to ten regularly scheduled include the substance of the Committee's discus- FOMC meetings held each year through a policy sion of monetary policy. As I noted earlier, this record of each meeting, which is published a few expanded policy record is published a few days days after the next meeting. This policy record after the next meeting, and it provides the public summarizes the economic information available Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 775 with more timely information than had been tions of foreign governments could have an imavailable previously. mediately adverse impact on foreign exchange Detailed and lengthy minutes of FOMC meet- markets and on the future ability of the Federal ings would not add greatly to the substantive Reserve to implement its international financial information currently available to the public. responsibilities. However, such minutes would identify the views The law should provide that no detailed minexpressed by individual members of the Commit- utes are to be released by the Federal Reserve tee and at times would include highly sensitive before the expiration of a period no shorter than information, especially in connection with inter- the one specified in H.R. 4478. Essential also is national financial transactions and issues. The the proposed legislation's provision of authority Board feels strongly that it is vital for legislation to protect information relating to international requiring the maintenance and eventual public financial matters for longer periods if the FOMC release of a detailed record of FOMC meetings to judged such a course to be in the national intercontain safeguards against premature disclosure est. With respect to the form of the detailed of such sensitive matters. The dangers of prema- minutes, the Board's view is that the language of ture disclosure include an inhibiting effect on the the proposed legislation provides sufficient flexifrank exchange of views during policy debates bility to permit the development of a record that and a potential for politicizing the decisionmak- would preserve the full substance and flavor of ing process. In the international financial area, FOMC deliberations on monetary policy while moreover, premature release of information on holding down the heavy costs of preparing the ongoing negotiations and on the views and opera- record. • Statement by Paul A. Volcker, Chairman, Board dominated by long-term, fixed-rate assets, such of Governors of the Federal Reserve System, as residential mortgages. As the costs of deposits before the Subcommittee on Financial Institu- have escalated, the earnings of such institutions tions Supervision, Regulation and Insurance of have vanished, with the result that the capital the Committee on Banking, Finance and Urban position of virtually all of them is being eroded. Affairs, U.S. House of Representatives, Octo- The basic solution to this problem must be ber 1, 1981. found in the context of success in the fight on inflation, bringing lower and more stable interest I am pleased to testify before this committee this rates. But, as we work toward that end, we must morning in support of H.R. 4603, a bill that also be prepared to deal with the possibility that would enhance the ability of the federal supervi- an increasing number of thrift institutions, basisory authorities to address the unusual financial cally with sound assets and with satisfactory pressures many depository institutions are now prospects, could find their capital depleted to the facing. point of technical insolvency or failure, and some It is no news to this committee that the na- will face a need for reorganization and merger. tion's thrift institutions are under severe earnings The great mass of their deposits is, of course, pressure. Fortunately, most of the institutions insured, thereby maintaining customer confientered this period of strain with a sizable capital dence. But it has also become clear to me that cushion. Their assets remain sound and the ag- the insuring and regulatory agencies need clarifigregate liquidity of the industry—both in a port- cation and strengthening of certain of their powfolio and in a cash-flow sense—is adequate. As a ers to deal with the situation in an orderly way. group, the management of the thrift institutions I would underline the fact that the present has shown flexibility and creativity in dealing problem of the thrift institutions has emerged, in w,ith their problems. But external events—spe- substantial part, as a result of general conditions cifically inflation and the related extraordinary in the economy and in the money markets. levels of interest rates—have created particular Indeed, for many years public policy helped problems for institutions whose portfolios are foster the heavy degree of portfolio concentra- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

776 Federal Reserve Bulletin • November 1981 tion by thrifts in long-term, fixed-rate instru- with more flexibility, under specified conditions, ments. Management is certainly a relevant factor either to provide transitional assistance to thrift in appraising the performance and prospects of institutions so they can survive during a period of particular institutions, but in some cases even financial stress or to broaden merger possibilithe best managed institutions have been caught ties. up in the effects of the inflation and the abrupt One provision of the bill would provide for the changes in interest rates in the last few years. temporary infusion of capital to affected institu- I also want to emphasize at the outset that I tions through acquisitions by the insurance funds consider the acute problems of the thrift industry of subordinated securities of the institution being to be transitional in nature—as recognized by the assisted, capital that will be repaid from future fact that the provisions of this bill apply tempo- earnings. Such authority already exists in limited rarily. Economic policy today is directed toward form, but the language of the existing statutes, dealing with the inflation problem that lies at the particularly with respect to the FDIC, did not heart of the problems affecting thrift institutions. really contemplate a situation such as the present Although no one can predict the duration with one, that would affect the thrift industry so certainty, the earnings squeeze facing thrift insti- generally. Specifically, the FDIC can provide tutions will be temporary in nature. As older assistance when it finds that a particular instituassets mature and are replaced by new ones, tion is "essential" to its community. In foreseeportfolio returns of thrift institutions will rise; able circumstances, with a number of thrift instijust in the last three years, for example, average tutions in a given area subject to severe portfolio returns have increased more than IVi pressures, no single such institution in the area percentage points at savings and loans and more may be "essential" to the community, but obvithan 1 percentage point at mutual savings banks. ously the community or region does have a clear New asset powers provided by the Depository stake in the maintenance of an effective presence Institutions Deregulation and Monetary Control of a number of thrift institutions. Act and more flexible mortgage instruments re- The bill would provide that the FDIC furnish cently authorized by the Federal Home Loan assistance when "severe financial conditions ex- Bank Board and used in an increasing number of ist that threaten the stability of a significant states will also enhance the ability of thrift insti- number of" insured institutions, provided that tutions to acquire assets with returns more relat- such assistance would "substantially reduce the ed to market rates. And, as you are aware, the risk of loss or avert a threatened loss" to the possibility of still broader powers for thrift insti- insurance fund. Thus, sound and soundly mantutions is likely to be considered in coming aged institutions could be assisted without the months. difficult determination that a particular institu- At the same time, a number of institutions will tion is "essential," but only when the difficulties require assistance during this difficult period or are general and arise from developments external will need to seek merger partners or other solu- to the institution, and when the risks to the tions. Part of our approach should be to provide insurance funds can be minimized. The past reasonable support to those institutions that can record and interest of the supervisory agencies and should survive problems not of their own seem to me to provide assurances that this making, recognizing that broadening the powers additional margin of flexibility will be utilized of thrift institutions, in itself, provides no solu- with great care and prudence and with approprition to the present problem. ate safeguards to the public interest; it is not a Essentially, that is the long-established mis- generalized "bail out," and should not be viewed sion of the supervisory and regulatory authori- as such. ties. The bill before you, drafted largely by the The cost to the federal government, both on supervisory agencies, provides no fundamental and off budget, must be considered in evaluating change in the authority or role of those agencies. different approaches to providing assistance. Rather, it simply provides the Federal Deposit What is at issue here is not a generalized subsidy, Insurance Corporation (FDIC) and Federal Sav- but pinpointed, limited, transitional capital asings and Loan Insurance Corporation (FSLIC) sistance to essentially viable institutions under- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 32 going temporary distress because of current fi- to act under its existing authority. In my opinion, nancial circumstances. It looks to repayment the broader question of bank-thrift consolidation over time. The approach is designed ultimately deserves attention in the months ahead in any to save, not to cost, the taxpayer money. The event, but the Board at this time would much assistance would be provided only in circum- prefer to act within the more limited framework stances in which it would prevent the possibility provided by the legislation before you. of large drains on the insurance funds that would The advantages of the "Regulators Bill" in arise in the event otherwise sound institutions these circumstances seem clear. The capital infuneeded to be merged or liquidated. sion provisions of the bill may help reduce the Inevitably there will be institutions whose number of cases in which supervisory mergers prospects for long-term viability are question- are necessary—but, when mergers are necesable, even under more favorable economic cir- sary, the supervisory authorities would be procumstances. Consequently, this legislation vided with the necessary flexibility and criteria would also specify guidelines under which the to deal with the situation. agencies would be given more flexible authority The bill also provides limited power for the to arrange supervisory mergers between now and FDIC to arrange an interstate merger of a large, the end of 1982. failing commercial bank when an intrastate merg- This flexible authority includes expanded pow- er would be neither possible nor desirable. Beers to facilitate conversion of mutual organiza- fore exercising this authority, the FDIC would be tions to stock form as a prelude to mergers with required to attempt first to find a merger partner stock organizations, and in specified circum- within the same state, then in an adjacent state, stances and as a "last resort" would permit and only then in other states. The FDIC would acquisition of ailing thrift institutions by healthy also be required to consult with the supervisory out-of-state thrift institutions or, alternatively, authority in the state in which the failing bank bank holding companies. The bill sets clear and was located and to take into consideration the specific ground rules for such mergers. Priority competitive implications of an interstate acquisiwould be given first to institutions of the same tion. type within the same state; second, to institu- I am aware of, and sensitive to, the concerns tions of the same type in different states; third, to of some about even the most limited form of institutions of different types in the same states; mergers or acquisitions across state lines. Preand fourth, to different types in different states. cisely for that reason the bill defines the circum- As you know, the Federal Reserve already has stances in which such authority would be used, broad authority under existing law to approve in effect compromising the unsatisfactory alterthe acquisition of thrift institutions by bank hold- natives of a sweeping change in existing law or ing companies. As a matter of policy and in the policy on the one hand, and a crippling limitation circumstances of recent years, we have refrained on the ability of the insuring agencies to deal with from exercising that authority. We have recog- the practical realities on the other. nized the close congressional interest in the I also know that to some this bill appears too subject, and recently submitted to the Congress a narrow in scope and too short in duration to deal staff study examining the issue anew.1 with the basic problem of thrift institutions or In transmitting that study, I indicated that in with structural change in the financial industry. the absence of legislation, such as the bill before That is true; the bill is not designed to do so. Our you, providing specific direction concerning pos- financial structure may be on the edge of farsible bank holding company takeovers of ailing reaching and substantial change. In the months thrift institutions, the Federal Reserve Board ahead the Congress will need to address the might well find it necessary in the public interest fundamental issues of which types of services can be provided by different types of financial institutions and in what geographic area, and the 1. This study, "Bank Holding Company Acquisition of competition between "regulated" and "unregu- Thrift Institutions," is available on request from Publications lated" institutions. I welcome that examination. Services, Board of Governors of the Federal Reserve Sys- But you realize that those issues are unavoidably tem, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

778 Federal Reserve Bulletin • November 1981 complex and contentious, and they will, in my the regulators. In my judgment, the legislation judgment, not be resolved easily. As important before you, limited in objective, modest in as those issues are, I would strongly urge that the scope, and temporary in duration, is needed Congress not wait for their resolution to address now, but in no way should prejudice your further the pressing, yet transitional, problems before examination of more fundamental issues. • Statement by E. Gerald Corrigan, President, their interests during the period between August Federal Reserve Bank of Minneapolis, before the 1979 and the spring of 1980. Further analysis and Subcommittee on Conservation, Credit and Ru- investigation did not yield information that is ral Development of the Committee on Agricul- substantially different from that supplied in the ture, U.S. House of Representatives, October 1, interim report. However, on the basis of this 1981. further analysis, three considerations warrant mention: First, it now appears that the peak level I am pleased to be here to share with you my of Hunt indebtedness—including debts to nonfiobservations and thoughts concerning the ency- nancial interests—was $60 million larger than clopedic study compiled by the Commodity Fu- was indicated earlier ($1,825 billion rather than tures Trading Commission (CFTC) regarding $1,765 billion). This higher level of debt reflects events in the silver market in 1979 and 1980. certain broker loans that we were not aware of However, before turning to that specific subject, earlier. Bank credit to the Hunt interests is now let me begin by providing the subcommittee estimated to have peaked at about $1 billion. further information, which has been assembled Second, the timing of the rise in Hunt-related by the Federal Reserve, concerning this situa- bank credit is somewhat different from that retion.1 This information supplements the material ported earlier. In the earlier report we had estisupplied earlier to the Congress in the Federal mated that Hunt-related domestic bank credit Reserve's "Interim Report on Financial Aspects was about $125 million in 1979. It now appears of the Silver Market Situation in Early 1980" and that the amounts of bank credit involved during should serve to complete the record with respect the latter part of 1979 were somewhat larger than to that earlier report. estimated earlier. New information indicates that As the subcommittee will recall, Federal Re- Hunt-related bank credit was slightly more than serve interest in the silver situation arose be- $300 million by the end of that year. The fact cause the combination of events described in the remains, however, that the bulk of silver-related CFTC report produced problems for individual indebtedness developed after the price of silver financial institutions that appeared to have some peaked in January and that such credit was potential for spreading to the financial markets in apparently used by the Hunts to meet margin what was already a difficult and turbulent period. calls as the price of silver dropped. During that In addition, the Federal Reserve was also con- time frame and until late March, the Federal cerned about the use of bank credit in connection Reserve had no direct knowledge of the size of with the overall episode—especially in the con- the Hunt positions or of the fact that they were text of the Federal Reserve's credit restraint financing margin calls by borrowings of any kind. program then in effect. Finally, we now have information to suggest The interim report detailed the extent, timing, that in the final four or five months of 1979, and nature of the use of credit by the Hunts and during which the price of silver was rising sharply, the short sellers in the market were also using bank credit—presumably to meet daily margin 1. Available on request from Publications Services, Board calls on their short positions. In some, if not of Governors of the Federal Reserve System, Washington, D.C. 20551. This subject was also discussed in a statement by many cases, these short positions were hedged Chairman Volcker before the Subcommittee on Agricultural against physical holdings of silver. In a sense, Research and General Legislation of the Senate Committee therefore, the reversal of the price of silver in on Agriculture, Nutrition, and Forestry, May 1, 1980, FEDER- AL RESERVE BULLETIN, vol. 66 (May 1980), pp. 388-92. mid-January had the effect of shifting existing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 779 credit of the short sellers in the market to the those agreements did provide rigorous covenants Hunts and others with long positions. prohibiting renewed speculation by the Hunts. In The second major issue discussed in the inter- addition, it was understood that the lead banks im report was the $1.1 billion credit line granted would provide periodic reports about the credit to the Placid Oil Company (which is owned by to bank examination personnel. In light of these Hunt family trusts but not by the Hunt brothers stipulations and arrangements, the Federal Rethemselves) by a syndicate of eleven domestic serve interposed no objections to the loan. and two foreign banks. In light of the size and Again, it was only because of the coincidence of nature of the credit, allow me to restate the the special credit restraint program then in effect circumstances surrounding the granting of the that the Federal Reserve was able to seek the credit—including the role of the Fed in that commitments against further speculation conregard—and then provide the subcommittee with tained in the loan agreements. a current report on the status of the credit. Upon execution of the loan, the loan proceeds The credit in question was negotiated between were used to pay off existing debts and to obtain a syndicate of banks, including the then-existing the release of silver and other assets securing the creditors, and the Hunt interests. It was entirely existing debt. Thus, the loan had the following a transaction between these private parties oper- results: ating in their own interests. The creditors— 1. Existing silver-related debts were paid off. sensitive to overall financial market conditions 2. The collateral for the then-outstanding and to their own exposure—obviously wished to credits, largely the Hunts' remaining silver, was solidify their positions and remove themselves freed and together with certain other Hunt asfrom any further vulnerability to falling silver sets, was paid into a partnership formed between prices. The Hunts presumably had a similar the Hunts and Placid Oil as part of an agreement; concern as well as an interest in consolidating these Hunt assets therefore became the assets of their indebtedness. The credit was a restructur- the partnership. ing of existing debt and did not represent a new 3. The liabilities of the partnership were the extension of credit. In effect, existing credit indebtedness of the partnership to Placid Oil secured in part or wholly by silver would be arising from the cash proceeds of the loan to replaced by credit secured by the resources and Placid, which were paid into the partnership. earnings of the Placid Oil Company and support- Thus, while the old and new creditors were no ed by the collateralized guarantee of the Hunt longer exposed to a drop in the price of silver— brothers. the liabilities were either paid out in full or were While we did, of course, have an interest in the secured by the assets and earnings of Placid—the outcome of these negotiations, no official of the Hunts and the partnership remained vulnerable Federal Reserve initiated or participated in the to the price of silver. negotiations. The Federal Reserve's primary In the months since the loan was consummatconcern was that the terms and conditions of the ed, periodic reports supplied by the banks indiloan agreement were consistent with the special cate that the Hunts have refrained from renewed voluntary credit restraint program then in effect. speculative activity. Thus, we are satisfied that In particular, the Federal Reserve had a concern the broad purposes and protections that form the that the proceeds of the loan not be used directly basis for the Federal Reserve's decision to interor indirectly to support any renewed speculative pose no objection to the loan are being satisfied. activity by the Hunts and that the silver be From time to time, the Federal Reserve has liquidated in an orderly manner. More generally, reminded the banks of the importance we give to the Federal Reserve, in consultation with the these protections. other government agencies involved, felt it ap- Turning now to the CFTC report, to comment propriate that the situation be resolved in an in detail on its specifics is obviously impossible, orderly fashion. so let me focus my attention on a single aspect of The various agreements constituting the credit the report, which in my judgment goes right to were executed as of April 28, 1980. Consistent the heart of the matter—namely, could this kind with the position taken by the Federal Reserve, of thing happen again? If so, what are the risks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

780 Federal Reserve Bulletin • November 1981 and what, if anything, should public policy do to Because of this, I applaud the initiatives taken prevent it from occurring again? or being contemplated by the CFTC over the The CFTC report answers the threshold ques- past year, which work in the direction of providtion in the affirmative, and I would answer it the ing a higher level of assurance against a problem same way. That is, one cannot rule out a similar occurring. Indeed, the use of position limits, the occurrence, although I too would consider it shortening of the time frame given to customers unlikely—particularly in light of the things that to satisfy margin calls, and the strengthening of have been done since last spring to strengthen capital rules all work in the direction of providing the market and to tighten regulations. further safeguards. Despite all that has been Nevertheless, since the possibility of a similar done, I for one would not object to considering event cannot be ruled out, the question then further steps to cushion the liquidity strains that shifts to the implications of such an occurrence. can be associated with meeting margin calls in an Obviously, one risk is that market participants environment of very sharp short-run changes in might face losses, defaults, and even bankrupt- futures prices. That result could be achieved cies. In and of itself, that need not be an overrid- with higher levels of margins, or perhaps through ing concern for public policy so long as we are some other mechanism that might retain some comfortable that market participants recognize greater margin of liquidity in the clearinghouse. the nature of the risks involved in taking posi- In saying this, I don't want to leave the subtions in these markets. Indeed, markets, by committee with the impression that I believe a definition, assume there will be winners and fundamental flaw exists in the design and worklosers. And futures markets, by their very na- ings of the markets and the clearinghouses. I ture, require the participation of speculators be- don't. However, I do believe that the potential cause only the speculators in the market allow problems associated with a major default are the hedgers—whether farmers or silver pro- large enough that every conceivable measure of ducers—to protect themselves against future insurance—consistent with the smooth functionchanges in prices or interest rates. In short, ing of the markets—should be examined. public policy should not have the job of protect- In closing, allow me to make one further point ing individual market participants from the risk that is implicit in what I have said earlier and is of loss or failure. explicit in the CFTC report. We in the United Having said that, let me hasten to add that States are blessed with the most advanced, the public policy most certainly has a responsibility most sophisticated, and the most efficient marto insure that unsafe or unsound practices of an kets in the world. Those traits also imply that individual, a firm, or even an exchange do not most of these markets—futures and spot, grain spill over and precipitate major problems in other and precious metals, and government securities institutions or other markets. Elements of this and bank certificates of deposit—are highly inspillover were seen in the silver situation, al- terconnected and interdependent domestically though in the end they were contained. and internationally. In turn, most if not all of In considering possible sources of a major these markets are directly or indirectly depenspillover from one institution to others or from dent on the banking system as their ultimate one market to others, it seems to me that the source of credit and liquidity if and when strains greatest danger may lie in the admittedly remote arise. Obviously, if we have learned one thing possibility of a major default in one of the from this experience it is that the tendency for clearinghouses that are characteristic of all of the such problems to occur are much greater in futures exchanges. These institutions are careful- periods of uncertainty and turbulence, in themly structured and have several layers of protec- selves an outgrowth of an inflationary environtion and insulation designed to prevent just such ment, in financial markets. an occurrence. Indeed, one sign of the strength While I am confident that the basic institutionof these institutions is that even in an event as al and regulatory framework is there to meet and traumatic as the silver situation no problem manage problems when they arise, I also believe developed. However, some would suggest that that the task of insuring the sound and efficient we may have come too close for comfort. functioning of markets in this period of unprece- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 781 dented financial change and innovation is more quested by the Congress are both constructive challenging than ever. This hearing and the ef- steps in the direction of permitting us to meet forts of the CFTC in completing the study re- that challenge. • Statement by John E. Ryan, Director, Division crecy Act requires financial institutions to report of Banking Supervision and Regulation, Board certain currency transactions in excess of of Governors of the Federal Reserve System, $10,000 to the Treasury Department. The reportbefore the Select Committee on Narcotics Abuse ing and other requirements of the Bank Secrecy and Control, U.S. House of Representatives, Act were designed to frustrate organized crimi- October 9, 1981. nal elements by putting the spotlight on currency transactions that are out of the ordinary. I am pleased to appear before this committee and The Federal Reserve System has primary suparticipate on behalf of the Federal Reserve in pervisory authority over approximately 1,000 this public hearing on government efforts to state member banks and 125 Edge corporations investigate and prosecute those involved in drug (domestic subsidiaries of banks that are licensed trafficking. The human consequences of narcot- to engage exclusively in international banking). ics abuse are extremely severe, and therefore The System is charged by the Congress with effective action is required to ensure that those ensuring that these commercial banking organiresponsible for trafficking in drugs are prevented zations are operated in a safe and sound manfrom exacting the terrible human and social costs ner and with determining their compliance with associated with drug abuse. In view of the di- U.S. banking laws and regulations. The Federal mensions of this problem, the Federal Reserve is Reserve discharges its responsibilities in the fully committed to cooperating with law enforce- areas of safety and soundness and of compliance ment agencies in conducting special investiga- largely through the conduct of supervisory extions and providing information when appropri- aminations and through the referral of possible ate and in ensuring compliance with the reporting violations of law to the designated agency with requirements of the Bank Secrecy Act. primary responsibility for enforcing the relevant At the outset, I think it may be useful to spell statute. out the activities and responsibilities of the Fed- As a result of its responsibilities for processing eral Reserve that have a bearing on the concerns currency and coin, the Federal Reserve cooperof this committee. As a bank supervisory and ates with the Treasury Department by providing regulatory agency, the Federal Reserve refers to information concerning currency flows into and the appropriate law enforcement agency evi- out of the Federal Reserve Banks and their dence of possible criminal conduct that is branches that result from the requests of banks brought to light through its examination powers. for currency and coin. This information can In addition, the Federal Reserve issues, re- assist the Treasury in determining which regions deems, destroys, and processes currency for of the country have a pattern or volume of cash member banks and has provided technical exper- transactions that may warrant further investigatise to law enforcement agencies on banking tion. matters in connection with drug-related investi- One study of these flows by the Treasury gations. Further the Federal Reserve has specific Department showed what appeared to be unusuresponsibilities for monitoring compliance of the ally heavy inflows of currency at the Miami financial institutions under its direct supervision Branch of the Federal Reserve Bank of Atlanta, with the requirements of the Bank Secrecy Act. particularly in denominations of $50 and $100, This responsibility was delegated to the Federal bills that are reportedly popular with narcotics Reserve and other bank regulatory agencies by operatives. Based on the records of the Federal the Department of the Treasury, which has pri- Reserve and the currency transaction reports mary responsibility for the enforcement of the filed by banks, a number of financial institutions statute. Among other provisions, the Bank Se- in Florida were selected for review for compli- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

782 Federal Reserve Bulletin • November 1981 ance with the Bank Secrecy Act as part of an provide the Treasury with better information on effort known as Operation Greenback. Each of possible violations, new and more comprehenthe federal banking agencies has conducted ex- sive examination procedures, based on those in aminations as part of this ongoing effort. Before place at the Federal Reserve Bank of New York, the commencement of these examinations, the were developed in 1980 by staffs of all the federal banking agencies conducted a special training regulatory agencies working under the aegis of session in Florida for the bank examiners who the Federal Financial Institutions Examination were assigned the responsibility for the examina- Council. These revised procedures (which are tions. The training session was designed to brief appended to my testimony) were initially field the examiners on expanded examination tech- tested by the agencies late last year and reviewed niques developed principally by the Federal Re- by staffs of both the Department of the Treasury serve in conjunction with the other federal bank- and the Government Accounting Office, whose ing agencies. In addition to these examinations, comments resulted in some modifications to the Federal Reserve examiners have responded to procedures.1 The procedures were formally imvarious requests from the Internal Revenue Ser- plemented in February of this year. vice and the Justice Department for technical The new examination procedures consist of assistance in connection with investigations of two separate phases or modules that are progrespossible violations of the Bank Secrecy Act by sively extensive in scope. This approach was financial institutions. designed to determine compliance in a manner The examination procedures followed by the that minimizes undue burden on the bank while Federal Reserve to monitor bank compliance making the most efficient use of limited examiner with the Bank Secrecy Act have evolved over resources. In the first phase the examiner must time and expanded as our experience with en- establish that the financial institution has approforcement has broadened. Beginning with the priate internal operating and auditing standards passage of the Bank Secrecy Act in 1970, Federal to ensure compliance, determine that the institu- Reserve examiners were instructed in examina- tion has established a program of employee edution schools as to the act's requirements and cation with regard to the requirements of the were provided with examination procedures to regulations, and determine that operations percheck compliance. The original compliance sonnel are sufficiently knowledgeable about checklist, worked out in consultation with the these requirements. This phase also contem- Department of the Treasury, designated more plates actual review of the reports submitted detailed examination guidelines, which were for- (4789s and 4790s), the list of customers exempted warded to the examiners for implementation. In from reporting, and the volume of cash shipped addition to consulting with the Treasury Depart- to or received from the Federal Reserve Bank or ment to develop these procedures, Federal Re- a correspondent bank. If the financial instituserve examiners have conducted special exami- tion's performance is found deficient as a result nations of state member banks for possible of this evaluation, or if the institution has an violations of the Bank Secrecy Act, such as the unusually high volume of cash shipments to Operation Greenback project in south Florida to correspondent banks or Reserve Banks, the exwhich I have already referred. Moreover, the aminer proceeds to the more exhaustive second- Federal Reserve remains committed to assisting phase procedures that involve extensive testing law enforcement agencies when necessary and of actual transactions to determine if reports are feasible in the conduct of special investigations filed as required. The procedures that I have of possible violations. We believe these steps outlined were implemented on a Systemwide represent a long-standing desire and commitment basis in February of this year, and our experion the part of the Federal Reserve to cooperate ence to date is that the procedures are an effecwith the U.S. Treasury and the primary law tive tool in monitoring compliance with the Bank enforcement agencies in ensuring compliance Secrecy Act. with the Bank Secrecy Act. 1. The attachments to this statement are available on In order to improve our ability to monitor request from Publications Services, Board of Governors of compliance with the Bank Secrecy Act and to the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 783 We are pleased to note that the GAO, in a porting. Moreover, we believe that these recent report, concluded that the new proce- changes combined with the new examination dures will enhance our ability to monitor compli- procedures will facilitate more effective monitorance with the Bank Secrecy Act and that, togeth- ing of compliance. er with actions taken by the Treasury A review of the reports we have submitted to Department, they will improve the quality, time- the Treasury between January 1, 1980, and June liness, and usefulness of bank secrecy reports to 30, 1981, indicates that the Federal Reserve has the responsible law enforcement investigators. taken the following steps: In conjunction with the procedures, the Federal 1. Examined and reviewed Bank Secrecy Act Reserve has taken a number of other actions to compliance in 1,573 financial institutions. contribute to these objectives. In particular, the 2. Cited 71 institutions for not filing currency Federal Reserve has increased the number of transaction reports. examiner days devoted to bank secrecy, expand- 3. Criticized 88 institutions for not maintained training efforts in this area, and improved the ing a current list of customers who are exempt timeliness and detail associated with the informa- from reporting such transactions. tion on possible violations that is provided to the 4. Responded to four requests from the Trea- Treasury on a quarterly basis. This information sury for additional information regarding apparincludes a list of banks cited for apparent viola- ent violations. tions of the Bank Secrecy Act, specific transac- In spite of certain instances of noncompliance, tions that were not reported, and bank manage- we believe that the overwhelming majority of ment plans for ensuring future compliance. In senior managements of the financial institutions addition, the Federal Reserve is continuing to under the supervision of the Federal Reserve explore ways in which the study of cash flows would not knowingly permit their institutions to between member banks and Reserve Banks can be used as vehicles for laundering narcoticsbe effectively used in targeting the bank secrecy related monies and that compliance with the examination procedures on those banks whose Bank Secrecy Act is generally good. Moreover, circumstances suggest a high volume of cash the banks cited for noncompliance have respondtransactions. ed to examiner criticism and have instituted We believe that there have been over time corrective action to insure future compliance some compliance problems with the Bank Secre- with the Bank Secrecy Act. Nevertheless, in an cy Act. Some of these problems, as the GAO effort to reinforce the compliance commitment of recognized in its study, were due to vague and financial institutions, the Federal Reserve, on imprecise regulations that left room for wide- September 17, 1980, forwarded a letter to the ranging interpretations, to unclear or overly chief executive officers of the institutions under broad exemption provisions, or to the difficulties its supervision requesting a review of procedures that a number of commercial banks, particularly to insure that employees were being properly smaller institutions, were having in devising trained concerning the requirements of the regucompliance mechanisms and understanding the lations and that adequate internal controls were requirements in light of the strains that were in place to insure compliance with the Bank placed on these resources by a surge of new Secrecy Act. regulations and paperwork. Finally, before this In conclusion, it is my opinion that the recent year some of the problems may have been due to changes in the regulation, the steps being taken the need for more comprehensive procedures on by the enforcement agencies to make greater use the part of the banking agencies to monitor and of the reported data, and the new bank examinaenforce compliance. tion procedures will improve the level of compli- Recent amendments by the Treasury Depart- ance with the Bank Secrecy Act by financial ment to the implementing regulations that tighten institutions. We believe that this is important, exemption procedures for the filing of currency given the importance of the act. We must recogtransaction reports have removed many ambigu- nize, to be sure, that it may not be possible for ities. We believe that these revisions should our bank examiners, or for the bankers themresult in more consistent interpretation and re- selves for that matter, to be 100 percent certain Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

784 Federal Reserve Bulletin • November 1981 that narcotics-related monies are not flowing rigid statutory or regulatory requirements. We through the banks. share, however, the committee's concern over As we all know, currency, being fungible and the harmful effects of drug trafficking, and will with no lasting identity to any particular transac- continue to cooperate with law enforcement tion, is extremely difficult to trace, and there agencies and strive to improve our examination seem to be an infinite number of ways for the techniques for ensuring compliance with the reledishonest to frustrate or circumvent necessarily vant laws and regulations. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

785 Announcements CHANGE IN DISCOUNT RATE SURCHARGE kers and Dealers) to require brokers and dealers to obtain "good faith" margin from customers The Federal Reserve Board on September 21, who write uncovered options on government 1981, approved a 1 percent reduction—from 4 securities. to 3 percent—in the discount rate surcharge that The amendment is a modification of a proposal applies to large, frequent borrowers at the dis- made by the Board in June concerning margin count window, effective September 22. No requirements for trading of options on governchange was made in the basic discount rate of 14 ment and government agency debt securities. percent. The good faith margin is to be based on the The adjustment is a technical response to the maintenance margins of the exchange that trades decline over recent weeks in short-term money the option. Under the amendment, no loan value market rates. The action was taken within the may be accorded to the option itself. context of the continuing policy of the Federal Reserve to restrain growth in money and credit. At the same time, the Board modified some- INTEREST RATE FUTURES CONTRACTS.what the rules governing the surcharge that ap- INTERPRETATION plies to frequent borrowing for traditional shortterm adjustment credit by depository institutions The Federal Reserve Board on September 15, with deposits of $500 million or more. 1981, issued an interpretation stating that bank Under the old rule, the surcharge applied when holding companies and state member banks inan institution had borrowed either in two or more tending to take positions in interest rate futures consecutive weeks or in more than four weeks of contracts involving domestic bank certificates of a calendar quarter. Under the modification, the deposit should do so in accordance with relevant surcharge will continue to apply when an institu- Board policy statements on engaging in futures tion borrows for a second consecutive week. and forward contracts in U.S. government and However, beginning October 1, the surcharge on agency securities. (See BULLETIN, vol. 66, April borrowing in excess of four weeks will apply 1980, page 321.) during a moving quarter rather than a calendar quarter. Specifically, it will apply to institutions borrowing in more than four weeks during a moving thirteen-week period that includes the REGULATION Q: INTERPRETATION current week and the twelve preceding weeks. In announcing the change in the surcharge, the The Federal Reserve Board has adopted an inter- Board acted on requests from the directors of the pretation of its Regulation Q (Interest on Depos- 12 Federal Reserve Banks. The discount rate is its) to clarify which depositors are eligible to hold the interest rate that is charged for borrowings interest-bearing checking accounts at member from the District Federal Reserve Banks. banks. The interpretation affects eligibility for negotiable order of withdrawal (NOW) accounts au- REGULATION T: AMENDMENT thorized nationwide by the Consumer Checking Account Equity Act of 1980. The Board acted The Federal Reserve Board has announced that after considering comment received on a proposit has adopted, effective October 26, 1981, an al published April 14, 1981. amendment to its Regulation T (Credit by Bro- The interpretation of Regulation Q, effective Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

786 Federal Reserve Bulletin • November 1981 September 16, 1981, permits the following depos- REGULATION Z. STAFF COMMENTARY itors to establish NOW accounts at member banks: The Federal Reserve Board has published an 1. All individuals, including businesses oper- official staff commentary that follows up and ated as sole proprietorships. (Only these individ- interprets the Board's simplified Regulation Z uals and sole proprietorships will continue to be (Truth in Lending). eligible to hold automatic transfer service (ATS) The commentary applies the requirements of accounts.) the Truth in Lending Simplification and Reform 2. Nonprofit organizations described in speci- Act to both open-end and closed-end consumer fied sections of the Internal Revenue Code. credit. It deals with the substance of some 1,500 3. Government units, if the funds are in the Board and staff interpretations that have been name of or are used for the purposes of schools, issued, at the request of consumers and credicolleges, universities, libraries, hospitals, or oth- tors, since the Truth in Lending Act became er medical or educational facilities. effective more than a decade ago and with certain The Board also ruled that currently permissi- recent developments in consumer credit financble NOW accounts that would no longer qualify ing. The commentary is expected to replace all under the revised eligibility standards and that individual interpretations and to be the sole were established before September 1, 1981, will vehicle for interpreting Regulation Z. be permanently grandfathered. Compliance with the simplified Regulation Z becomes mandatory April 1, 1982, but creditors may begin to comply with it immediately. REGULATION E: STAFF COMMENTARY The Board believes that the attempt to issue highly specific interpretations in the past led to The Federal Reserve Board made available on an accumulation of interpretations that by their September 17, 1981, an official staff commentary number and complexity complicated rather than on Regulation E, which implements the Elec- facilitated compliance. The commentary focuses tronic Fund Transfer Act. on providing guidance with wide application, As directed by the act, the Board adopted together with illustrative examples. It also proimplementing regulatory rules in 1979 and 1980. vides rules for applying the disclosure require- The commentary, in the form of questions and ments of Truth in Lending to a number of recent answers, deals with all sections of Regulation E. developments in the field of consumer credit It was adopted after consideration of comment financing. These include developments involving received. "creative" mortgage financing and "wrap- The questions and answers are intended to around" mortgages. minimize compliance burdens and set objective standards for both compliance and enforcement. Providers of electronic transfer services that PROPOSED ACTION conform to the staff commentary are protected from civil liability. The Federal Reserve Board has made public a The EFT Act protects consumers in their use proposed official staff commentary intended to of electronic transfer of funds. Electronic trans- apply and interpret the Board's Regulation M fer services permit consumers to transfer funds (Consumer Leasing). Comment was requested without the use of checks. Such services, which by December 11, 1981. may involve the use of an EFT card, permit consumers to withdraw cash from their accounts at automated teller machines and to debit their MEETING OF CONSUMER ADVISORY accounts at the point of sale for purchases of COUNCIL goods and services. The text of the commentary may be obtained The Federal Reserve Board has announced that from the Federal Reserve Board or the Federal its Consumer Advisory Council met on October Reserve Banks. 28-29, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 787 The Council, with 30 members who represent factors were also reviewed and changed, but a broad range of consumer and creditor interests, only slight adjustments were necessary. advises the Board on its responsibilities regarding consumer credit protection legislation. It Capacity utilization rates. The capacity utilimeets four times a year. zation rates have been revised beginning with January 1980 as a result of the annual revision of the production index. Minor adjustments also NEW PUBLICATION were made to the capacity indexes. Both the industrial production and capacity The Report of the Committee of Experts on utilization releases may be obtained from Publi- Seasonal Adjustment Techniques, Seasonal Ad- cations Services, Board of Governors of the justment of the Monetary Aggregates, is now Federal Reserve System, Washington, D.C. available for distribution. 20551. In early 1978 the Federal Reserve Board asked a group of prominent statisticians and economists to examine the applicability of seasonal REVISED OTC STOCK LIST adjustment techniques to time series of financial data, particularly the monetary aggregates, their The Federal Reserve Board has published a components, and related series, with a view to revised list of over-the-counter (OTC) stocks recommending to the Board the most appropriate that are subject to its margin regulations, effecmethods for seasonally adjusting such series. tive October 5, 1981. The committee's report contains ten principal The list supersedes the list of OTC margin recommendations for modifications in the exist- stocks that was issued on April 6, 1981. Changes ing Board procedures and their use, the develop- that have been made in the list, which now ment of alternative procedures, the publication includes 1,407 OTC stocks, are as follows: 155 of initial and revised seasonally adjusted mone- stocks have been included for the first time; 16 tary statistics, and guidelines for additional re- stocks previously on the list have been removed search by the Board's staff on seasonal adjust- for substantially failing to meet the requirements ment techniques. for continued listing; and 39 stocks have been The cost of the report is $2.75 a copy. It is removed for reasons such as listing on a national available from Publications Services, Board of securities exchange or because the companies Governors of the Federal Reserve System, were acquired by another firm. Washington, D.C. 20551. The list is available on request from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ANNUAL REVISION OF DATA SERIES Two of the Board's data series have been re- CHANGE IN BOARD STAFF vised. The Board of Governors has announced the Index of industrial production. With the publi- temporary appointment of Theodore E. Downcation of the August 1981 production index in ing, Jr., Operations Officer of the Federal Remid-September, the results of the 1980 data serve Bank of Chicago, as Assistant Secretary of revision were also released. This annual revision the Board for a six-month period beginning Octoincorporates 1980 data that became available ber 1, 1981. after the four-month period in which monthly Mr. Downing replaces David Michael Manies, estimates are currently adjusted as well as data who has returned to the Federal Reserve Bank of revised by the source for 1980. The seasonal Kansas City. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

789 Record of Policy Actions of the Federal Open Market Committee Meeting Held on August 18, 1981 turing and in retail trade; employment in construction, however, fell Domestic Policy Directive further. The unemployment rate de- The information reviewed at this clined to 7.0 percent, somewhat bemeeting suggested that real GNP low the average rate of 7.4 percent was likely to change little in the for the first half of the year. current quarter, following a decline Private housing starts fell substanat an annual rate of about 2 percent tially further in June, to an annual in the second quarter indicated by rate of just over 1 million units; preliminary estimates of the Com- newly issued permits for residential merce Department. Average prices, construction also declined sharply. as measured by the fixed-weight Combined sales of new and existing price index for gross domestic busi- homes continued at about the reness product, appeared to be con- duced pace of recent months. tinuing to rise less rapidly than earli- The rise in producer prices of finer in the year. ished goods moderated to an annual The dollar value of total retail rate of about 5!/4 percent in July, a sales increased appreciably in June little less than the average in the and July following sizable declines second quarter and sharply below over the previous two months. Sales the rate of 13'/4 percent in the first gains at dealers in automotive prod- quarter. Energy prices declined in ucts accounted for about half of the July, while prices of finished foods overall increase in June and nearly rose sharply. In June, the consumer all of the rise in July. Unit sales of price index increased at an annual new automobiles picked up some- rate of about 8V2 percent. As in May, what in July from an extremely low the increase reflected a substantial pace in the second quarter. rise in the homeownership compo- The index of industrial production nent of the index; retail food prices rose 0.3 percent in July following a were about unchanged and though slight decline in June. Most of the energy prices continued to increase, July increase reflected a continua- the pace was much slower than earlition of the post-strike rebound in er in the year. Over the second quarcoal output; production of automo- ter as a whole, consumer prices rose biles and trucks fell sharply, and at an annual rate of about IV2 peroutput of construction supplies con- cent, compared with a rate of 9Vi tinued to decline. Capacity utiliza- percent in the first quarter. Over the tion in manufacturing edged down to first seven months of the year, the 79.6 percent in July following a more rise in the index of average hourly sizable decline in June. earnings was somewhat less rapid Nonfarm payroll employment, than it was during 1980. adjusted for changes in the number In foreign exchange markets the of workers on strike, advanced sub- trade-weighted value of the dollar stantially in July after having de- against major foreign currencies had clined appreciably in June. Employ- risen about 5 percent further bement gains were widespread, and tween early July and early August, were relatively strong in manufac- when it reached its highest level in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

790 Federal Reserve Bulletin • November 1981 nearly a decade. More recently, the percent during July and declined to dollar had declined, but it was up an average of about 18!/4 percent about 2 percent on balance over the during the first half of August. Deintermeeting period. In June, the spite the decline in the federal funds U.S. trade deficit declined slightly rate, yields on most other short-term from the May level. For the second instruments rose about 1 to IV2 perquarter the deficit was up substan- centage points over the intermeeting tially over the first-quarter rate, as period. the value of imports increased and M-1B, adjusted for the estimated the value of exports declined some- effects of shifts into NOW accounts, what, reflecting a large drop in agri- expanded at an annual rate of about cultural exports. 3V2 percent in July, following con- At its meeting on July 6-7, the traction at annual rates averaging Committee had decided that open nearly 7 percent in May and June. market operations in the period until Growth in M-2, buoyed by rapid this meeting should be directed to- expansion in money market mutual ward behavior of reserve aggregates fund shares, accelerated to an annuassociated with growth of M-1B al rate of 8 percent from an annual from June to September at an annual rate of about 4 percent on average in rate of 7 percent after allowance for the previous two months. In July, flows into NOW accounts (resulting the level of shift-adjusted M-1B was in growth at an annual rate of about 2 well below the lower end of the percent from the average in the sec- Committee's range for growth over ond quarter to the average in the the year from the fourth quarter of third quarter), provided that growth 1980 to the fourth quarter of 1981, of M-2 remained around the upper while the level of M-2 was slightly end of its range for the year or below the upper end of its range for tended to move down within the the year. Data available for early range. If it appeared to the Manager August suggested substantial strength for Domestic Operations that pursuit in both M-1B and M-2. The strength of the monetary objectives and relat- in M-2 apparently reflected in part ed reserve paths during the period responses of the public to the availbefore the next meeting was likely to ability of more attractive yields on be associated with a federal funds small saver certificates with maturirate persistently outside a range of ties of 2Vi years or more, whose 15 to 21 percent, the Chairman might interest rate ceilings were liberalcall for a Committee consultation. ized, effective August 1. Data becoming available after the Total credit outstanding at U.S. first week or so of the intermeeting commercial banks expanded at an period indicated some shortfall in annual rate of 53A percent in July, growth of M-1B from the short-term about the same as in June. With the path implied by the objective speci- exception of business loans, which fied by the Committee. Growth of accelerated somewhat further from a M-2 appeared to be about in line brisk pace in June, growth in the with the Committee's objective. major components of bank credit Consequently, required reserves and was sluggish. Net issues of commerthe demand for reserves contracted cial paper by nonfinancial corporain relation to the supply being made tions expanded at a moderate pace in available through open market oper- July, following growth at exceptionations, and member bank borrow- ally rapid rates in the preceding two ings declined from an average of months. about $l3/4 billion around the time of Yields on most intermediate- and the July meeting to an average of long-term securities moved up V2 to about $1.2 billion in the first two 1 Vi percentage points over the interstatement weeks in August. The fed- meeting interval to record levels. eral funds rate averaged about 19 The upward pressure on interest Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 791 rates apparently reflected increasing that inflationary attitudes and behavconcern about current and prospec- ior had been fundamentally altered. tive financing needs of the Treasury In this connection it was observed in the light of enactment of legisla- that restraint on some prices reflecttion to reduce taxes, incoming data ' ed the intense pressures that had on the economy that were stronger built up in financial markets and that than many market participants had a near-term relaxation of those fianticipated, and some disappoint- nancial pressures might quickly disment that easing of market pressures sipate the sense of progress against had not developed as rapidly as inflation. many had expected. The prime rate Several members indicated their charged by commercial banks on broad agreement with the staff proshort-term business loans was raised jection of little change in economic Vi percentage point over the inter- activity over the months immediatemeeting period to 20'/2 percent. In ly ahead, but one member commenthome mortgage markets, average ed that some decline was a more rates on new commitments for fixed- likely prospect. The longer-run ecorate loans at savings and loan associ- nomic outlook was more clouded ations rose to 171/4 percent from 163/4 and subject to diverging influences. percent at the time of the July meet- Some members were concerned that ing. if abnormally high interest rates The staff projections presented at should persist for an extended perithis meeting suggested that growth od, the already strong pressures on in real GNP probably would be slug- many interest-sensitive sectors of gish over the remainder of 1981 and the economy would intensify and the during the first half of 1982. Such a resulting financial strains could indevelopment was likely to be accom- duce dislocations and a sharp depanied by a moderate increase in the cline in overall economic activity. unemployment rate from its current Other members noted that the econlevel. The rise in the fixed-weight omy had displayed remarkable resilprice index for gross domestic busi- iency and adaptability to high interness product was projected to est rates and they emphasized that change little during the rest of this fiscal policy would exert an increasyear from the reduced pace of the ingly stimulative impact on the econsecond quarter but to decline some- omy as time went on. It was also what further in the first half of 1982. suggested that further moderation in In the Committee's discussion of inflation would have a favorable efthe economic situation and outlook, fect on economic activity over time, the view was expressed that overall in large part by relieving pressures economic activity was holding up on financial markets, although the fairly well despite reports of de- near-term impact could be some repressed conditions in some areas of duction in consumer spending that the country and in some credit-de- would otherwise have been made in pendent sectors of the economy. anticipation of later price increases. Real GNP had declined somewhat in At its meeting on July 6-7, 1981, the second quarter, but the latest the Committee reaffirmed the moneindicators of economic activity did tary growth ranges for the period not suggest that a cumulative decline from the fourth quarter of 1980 to the was under way. A number of mem- fourth quarter of 1981 that it had set bers emphasized the improvement in at its meeting in early February. key measures of inflation, including These ranges were 3 to 5Vi percent some signs of moderation in wage for M-1A and V/2 to 6 percent for increases, and suggested that infla- M-1B, abstracting from the impact of tionary expectations might be abat- NOW accounts on a nationwide baing. Other members felt, however, sis, 6 to 9 percent for M-2, and 6V2 to that it was premature to conclude 9Vi percent for M-3. The associated Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 Federal Reserve Bulletin • November 1981 range for bank credit was 6 to 9 length the possible implications for percent. The Committee recognized the economy, for policy, and for that a shortfall in M-1B growth in the reserve provision of the divergent first half of the year partly reflected trends in M-1B and M-2, together a shift in public preferences toward with the other aggregates. It was other highly liquid assets and that emphasized that in addition to the growth in the broader aggregates had previously recognized distortions in been running somewhat above the measured growth of M-1B resulting upper end of the ranges. In light of from shifts into NOW accounts and its desire to maintain moderate the development of money substigrowth in money over the balance of tutes, recent legislative and regulathe year, the Committee expected tory developments were likely to that growth in M-1B for the year affect growth in the aggregates, would be near the lower end of its especially M-2, over the near term. range. At the same time, growth in Among the uncertainties in question the broader monetary aggregates were the further impact on M-2 of might be at the higher end of their the liberalization of interest rate ceilranges. ings on small saver certificates, the In the Committee's discussion of continuing attractiveness of money policy for the weeks immediately market mutual funds, and the extent ahead, a consensus emerged in favor to which payments to stockholders of retaining the monetary growth ob- as a result of recent merger activities jectives for the third quarter that had were being invested in nontransacbeen adopted at the July meeting. tion-type accounts included in M-2. There was also agreement to retain Even more difficult to assess was the the 15 to 21 percent intermeeting impact of the introduction of taxrange for the federal funds rate that exempt "all saver" certificates on provided a mechanism for initiating October 1, 1981; those certificates further consultation by the Commit- could well contribute to a marked tee. During July, growth in M-1B, acceleration in M-2 growth during adjusted for the estimated effects of the fourth quarter, but in the interim flows into NOW accounts, had fallen measured M-2 might be artificially considerably short of the 7 percent lowered to the extent that funds earannual rate objective established for marked for investment in these new the June to September period, and instruments were being temporarily achievement of that objective there- accumulated in repurchase agreefore implied some acceleration of ments with October 1 maturities. M-1B during August and September. Given the uncertainties that were Available data for the first part of involved, the members agreed that August suggested a pickup in M-1B widely divergent behavior of the aggrowth, although interpretation was gregates might pose difficult quescomplicated by the transitory influ- tions about policy implementation ence of demand balances accumulat- and reserve provision over the comed in conjunction with corporate ing period. A view was also exmergers. At the same time, growth pressed that the increasing difficulty in M-2, which was already close to of interpreting the performance of the top of its range, also turned up in the monetary aggregates argued for early August. A staff analysis sug- giving weight to interest rates in gested that the nontransaction com- evaluating the degree of restraint beponents of M-2 were likely to contin- ing exerted by monetary policy. This ue to expand rather rapidly over the view was based on the premise that period ahead, partly because of lib- interest rates were already exerting a eralized deposit rate ceilings on great deal of restraint and a small small saver certificates. decline would be welcomed, provid- In the course of the discussion, ed it was not inconsistent with the members considered at some achievement of the Committee's Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 793 longer-term objectives for monetary decline in the second quarter; prices on growth. In contrast, the danger was the average appeared to be continuing to rise less rapidly than earlier in the year. emphasized that a change in ap- The dollar value of total retail sales inproach that attempted to stabilize creased appreciably further in July, reinterest rates or to encourage a near- flecting some recovery in sales at autoterm decline could well be counter- motive dealers. Industrial production productive if such an effort were rose slightly in July, while nonfarm payroll employment advanced substantially; accompanied by or fostered an exthe unemployment rate declined to 7.0 cessive rebound in monetary percent, somewhat below its average growth; the net result could then be level in earlier months of 1981. In June to encourage inflationary expecta- housing starts declined sharply further. Over the first seven months of the year, tions, call into question the committhe rise in the index of average hourly ment of the Federal Reserve to an earnings was somewhat less rapid than anti-inflationary policy, and thereby during 1980. actually jeopardize the prospects for The weighted average value of the ultimately achieving and sustaining dollar rose further against major foreign currencies in July and early August, regthe significantly lower interest rates istering gains against all major currenthat were sought. cies. In June the U.S. foreign trade defi- Several members expressed con- cit declined slightly from the May level, cern about placing too much reliance but for the second quarter the deficit was up substantially over the first-quarter on M-2 as a guide to policy over the rate. weeks ahead in light of the various In July M-1B, adjusted for the estimatfactors that were potential sources ed effects of shifts into NOW accounts, of distortion. In this view the provi- expanded somewhat following a substansion of reserves should not be re- tial decline in May and June, and growth in M-2 accelerated from a relatively slugstrained solely on the basis of M-2 gish pace in the previous two months. growth in excess of the Committee's The level of adjusted M-1B in July was objective. In the discussion, it was well below the lower end of the Commitunderstood that the sizable growth tee's range for growth over the year from the fourth quarter of 1980 to the fourth in M-2 in prospect for August would quarter of i981 while the level of M-2 not in itself call for further restraint was slightly below the upper end of its in the provision of reserves, since range for the year. Available data for such growth would, in any event, early August suggested further acceleraleave M-2 around the upper end of tion in growth of M-1B and M-2, with acceleration in M-2 apparently influits range for the year as provided in enced in part by initial responses of the the directive. Should measured public to the availability of more attracgrowth subsequently appear exces- tive deposit instruments, pointing up the sive in the light of the target, careful necessity of evaluating the behavior of M-2 in the light of the impact of regulaassessment would be required of the tory and legislative changes. Since early possibility that special factors, in- July most market interest rates have cluding regulatory and institutional risen considerably on balance. changes, were distorting the data. If The Federal Open Market Committee necessary, the Chairman might call seeks to foster monetary and financial conditions that will help to reduce inflafor Committee consultation to evalution, promote sustained economic ate the implications for policy. growth, and contribute to a sustainable At the conclusion of the discus- pattern of international transactions. At sion, the Committee agreed to reaf- its meeting in early July, the Committee agreed that these objectives would be firm the short-run policy objectives furthered by reaffirming the monetary for the third quarter adopted at its growth ranges for the period from the previous meeting. fourth quarter of 1980 to the fourth quar- The following domestic policy di- ter of 1981 that it had set at the February meeting. These ranges included growth rective was issued to the Federal of 3Vi to 6 percent for M-1B, abstracting Reserve Bank of New York: from the impact of flows into NOW The information reviewed at this meet- accounts on a nationwide basis, and ing suggests little change in real GNP in growth of 6 to 9 percent and 6V2 to 9VI the current quarter, following a small percent for M-2 and M-3, respectively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 Federal Reserve Bulletin • November 1981 The Committee recognized that the those distortions. The Chairman may shortfall in M-1B growth in the first half call for Committee consultation if it apof the year partly reflected a shift in pears to the Manager for Domestic Operpublic preferences toward other highly ations that pursuit of the monetary obliquid assets and that growth in the jectives and related reserve paths during broader aggregates had been running at the period before the next meeting is about or somewhat above the upper ends likely to be associated with a federal of their ranges. In light of its desire to funds rate persistently outside a range of maintain moderate growth in money 15 to 21 percent. over the balance of the year, the Committee expected that growth in M-1B for Votes for this action: Messrs. the year would be near the lower end of Volcker, Solomon, Boykin, Corrigan, its range. At the same time, growth in the Gramley, Keehn, Rice, Schultz, Mrs. broader aggregates might be high in their Teeters, Messrs. Wallich, and Black. ranges. The associated range for bank Vote against this action: Mr. Partee. credit was 6 to 9 percent. The Committee (Mr. Black voted as alternate for Mr. also tentatively agreed that for the period Boehne.) from the fourth quarter of 1981 to the fourth quarter of 1982 growth of M-l, M-2, and M-3 within ranges of 2XA to 5V4 Mr. Partee dissented from this acpercent, 6 to 9 percent, and 6Vi to 9Vi tion because, as at the previous percent would be appropriate. These meeting, he preferred to give more ranges will be reconsidered as warranted emphasis to reducing the risk of a to take account of developing experience cumulative decline in growth of with public preferences for NOW and similar accounts as well as changing eco- M-1B in light of the indications of nomic and financial conditions. weakening in economic activity. Accordingly, he favored specification In the short run the Committee continues to seek behavior of reserve aggre- of a somewhat higher objective for gates consistent with growth of M-1B growth of M-lB over the period from from June to September at an annual rate June to September, and without the of 7 percent after allowance for the imadditional weight assigned to the popact of flows into NOW accounts (resulting in growth at an annual rate of about 2 tential for more rapid growth of M-2. percent from the average in the second In his view, the short-run behavior quarter to the average in the third quar- of M-2 was subject to great uncerter), provided that growth of M-2 retainty because of the volatile influmains around the upper limit of, or ence of money market mutual funds, moves within, its range for the year. It is recognized that shifts into NOW ac- the liberalization of deposit rate ceilcounts will continue to distort measured ings on small saver certificates begrowth in M-1B to an unpredictable ex- ginning August 1, and the introductent, and operational reserve paths will tion of tax-exempt "all saver" be developed in the light of evaluation of certificates beginning October 1. * * * * * Records of policy actions taken by the Federal Open Market Committee at each meeting, in the form in which they will appear in the Board's Annual Report, are made available a few days after the next regularly scheduled meeting and are later published in the BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

795 Legal Developments AMENDMENT TO REGULATION A interpretation of Regulation Q—Interest on Deposits (12 CFR Part 217), announced on August 14, 1981, The Board of Governors of the Federal Reserve Sys- clarifying the rules concerning the class of depositors tem has amended its Regulation A, "Extensions of eligible to maintain NOW accounts at member banks. Credit by Federal Reserve Banks," for the purpose of Effective September 16, 1981, the Board amends adjusting discount rates with a view to accommodating Regulation Q (12 CFR Part 217) by adding a new commerce and business in accordance with other section 217.157 as follows: related rates and the general credit situation of the country. Section 217.157—Eligibility for NOW Accounts Effective on the dates specified in the text of the regulation, section 201.52 is revised to read as set forth (a) Background. below: (1) Effective December 31, 1980, the Consumer Checking Account Equity Act of 1980 (Title III of Section 201.52—Extended Credit to Depository the Depository Institutions Deregulation and Mone- Institutions tary Control Act of 1980; P.L. 96-221; 94 Stat. 146) authorizes depository institutions nationwide to offer interest-bearing checking (NOW) accounts to depositors where the "entire beneficial interest is (b) The rates for other extended credit provided to held by one or more individuals or by an organizadepository institutions under sustained liquidity pres- tion which is operated primarily for religious, philsures or where there are exceptional circumstances or anthropic, charitable, educational, or other similar practices involving a particular institution under purposes and which is not operated for profit." § 201.3(b)(2) of Regulation A are: (12 U.S.C. 1832(a)(2)). The purpose of the Act is to extend the availability of NOW accounts throughout the nation. Previously, as an experiment, NOW Rate Effective accounts were authorized to be offered by deposi- Federal Reserve Bank of: tory institutions only in New England, New York, Boston 14 September 4, 1981 and New Jersey. New York 14 August 21, 1981 Philadelphia 14 August 20, 1981 (2) The NOW account experiment established by Cleveland 14 August 25, 1981 Congress in 1973 did not specify the types of custom- Richmond 14 August 21, 1981 Atlanta 14 August 21, 1981 ers that could maintain NOW accounts. As a result, Chicago 14 August 27, 1981 St. Louis 14 August 25, 1981 the rules of the Federal Reserve and Federal Depos- Minneapolis 14 August 21, 1981 it Insurance Corporation specified the types of de- Kansas City 14 August 28, 1981 Dallas 14 August 20, 19811 positors eligible to maintain NOW accounts at mem- San Francisco 14 August 24, 1981 ber and insured nonmember banks. In enacting the NOW account provision in 1980, Congress adopted NOTE: These rates apply for the first 60 days of borrowing. A 1 per cent surcharge applies for borrowing during the next 90 days, and a 2 virtually the same language concerning NOW acper cent surcharge applies for borrowing thereafter. count eligibility that previously had been adopted by 1. August 28, 1981 for extended credit to depository institutions where there are special circumstances. the Board and the Federal Deposit Insurance Corporation with regard to the types of customers permit- [12 U.S.C. 248(i), Interprets or applies 12 U.S.C. 357] ted to maintain NOW accounts in institutions located in the NOW account experiment region. (12 CFR 217.1(e)(3) and 12 CFR 329.1(e)(2)). This definition AMENDMENT TO REGULATION Q was based upon longstanding regulatory provisions concerning eligibility criteria for savings deposits. The,Board of Governors of the Federal Reserve Sys- (3) In response to many requests for rulings since tem has determined to place into effect immediately its the new law was enacted, the Board has determined Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

796 Federal Reserve Bulletin • November 1981 to clarify the types of entities that may maintain (2) All organizations that are operated for profit are NOW accounts at member banks. not eligible to maintain NOW accounts at member banks. (b) Individuals. (3) The following types of organizations described (1) Any individual may maintain a NOW account in the cited provisions of the Internal Revenue Code regardless of the purposes that the funds will serve. are among those not eligible to maintain NOW Deposits of an individual used in his or her business accounts: may be held in a NOW account, since it is impracti- (i) credit unions and other mutual depository incable to distinguish between funds used by an stitutions described in § 501(c)(14); individual in his or her business and funds used for (ii) mutual insurance companies described in personal purposes. However, other entities orga- § 501(c)(15); nized or operated to make a profit may not maintain (iii) crop financing organizations described in NOW accounts regardless of whether they are cor- § 501(c)(16); porations, partnerships, associations, business (iv) an organization created to function as part of trusts, or other organizations. a qualified group legal services plan described in (2) Under current provisions, funds held in a fidu- § 501(c)(20); ciary capacity (either by an individual fiduciary or (v) farmers' cooperatives described in § 521; or by a corporate fiduciary such as a bank trust depart- (vi) political organizations described in § 527. ment), including those awaiting distribution or investment, may be held in the form of NOW accounts (d) Governmental Units. Under the Act, governmenif the beneficiaries are individuals. The Board be- tal units generally may not maintain NOW accounts. lieves that such a classification should continue The Board believes that some governmental units are since fiduciaries are required to invest even tempo- operated primarily for philanthropic, educational, or rarily idle balances to the greatest extent feasible in charitable purposes, and that such entities should be order to responsibly carry out their fiduciary duties. regarded as eligible to maintain NOW accounts. For The availability of NOW accounts provides a conve- example, a governmental unit, regardless of form of nient vehicle for providing a short-term return on organization, may maintain a NOW account if the temporarily idle trust funds of individuals. funds are in the name of or are used solely for schools, (3) Pension funds, escrow accounts, security depos- universities or colleges, libraries, hospitals, or other its, and other funds held under various agency educational or medical facilities. agreements may also be classified as NOW accounts if the entire beneficial interest is held by individuals. (e) Grandfather Provision. In order to avoid unduly The Board believes that these accounts are similar disrupting account relationships, a NOW account esin nature to trust accounts and should be accorded tablished at a member bank on or before August 31, identical treatment. Therefore, such funds may be 1981, that represents funds of a nonqualifying entity regarded as eligible for classification as NOW that previously qualified to maintain a NOW account accounts. may continue to be maintained. (c) Nonprofit Organizations. (1) Under the Act, a nonprofit organization that is BANK HOLDING COMPANY AND BANK MERGER operated primarily for religious, philanthropic, char- ORDERS ISSUED BY THE BOARD OF GOVERNORS itable, educational, or other similar purposes may maintain a NOW account. The Board regards the Orders Issued Under Section 3 of Bank Holding following kinds of organizations as eligible for NOW Company Act accounts under this standard if they are not operated for profit: (i) organizations described in section 501(c)(3) Elgin National Bancorp, through (13), and (19) of the Internal Revenue Elgin, Illinois Code (26 U.S.C. (I.R.C. 1954) § 501(c)(3) through (13) and (19)); and Order Approving Formation of a Bank Holding (ii) homeowners and condominium owners asso- Company ciations described in section 528 of the Internal Revenue Code (26 U.S.C. (I.R.C. 1954) § 528), Elgin National Bancorp, Inc., Elgin, Illinois has apincluding housing cooperative associations that plied for the Board's approval under section 3(a)(1) of perform similar functions. the Bank Holding Company Act (12 U.S.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 797 § 1842(a)(1)) of the formation of a bank holding compa- Although no significant changes in Bank's operany by acquiring 80 percent or more of the voting shares tions or in the services offered to customers are of Elgin National Bank ("Bank"), Elgin, Illinois. anticipated to follow from consummation of the pro- Notice of the application, affording an opportunity posed transaction, considerations relating to the confor interested persons to submit comments and views, venience and needs of the community to be served are has been given in accordance with section 3(b) of the consistent with approval of this application. Based act. The time for filing comments and views has upon the foregoing and other facts of record, the expired and the Board has considered the application Board concludes that consummation of the proposal and all comments received in light of the factors set would be in the public interest and that the application forth in section 3(c) of the act (12 U.S.C. § 1842(c)). should be approved. Applicant, a nonoperating corporation with no sub- On the basis of the record, the application is apsidiaries, was organized for the purpose of becoming a proved for the reasons summarized above. The transbank holding company by acquiring Bank, which holds action shall not be consummated before the thirtieth deposits of $51.5 million.1 Upon acquisition of Bank, calendar day following the effective date of this Order, Applicant would control the 252nd largest bank in or later than three months after the effective date of Illinois and would hold about 0.07 percent of the total this Order, unless such period is extended for good deposits in commercial banks in the state. cause by the Board or by the Federal Reserve Bank of Bank is the fourth largest of 19 banking organiza- Chicago, pursuant to delegated authority. tions in the Elgin banking market and holds approxi- By order of the Board of Governors, effective mately 8.3 percent of the total deposits in commercial September 9, 1981. banks in the market.2 Three shareholders of Applicant serve, either jointly or separately, as principals of five Voting for this action: Vice Chairman Schultz and Goversavings and loan institutions, two commercial banks, nors Partee, Teeters, and Rice. Absent and not voting: and a one-bank holding company and its subsidiary Chairman Volcker and Governors Wallich and Gramley. bank. Each of the associated organizations operates in a separate and distinct market from bank. It appears (Signed) WILLIAM W. WILES, from the facts of record that consummation of the [SEAL] Secretary of the Board. proposal would neither result in any adverse effect upon competition, nor increase the concentration of banking resources in any relevant area. Accordingly, First American Bank Corporation, the Board concludes that competitive considerations Kalamazoo, Michigan are consistent with approval of the application. Where principals of an applicant are engaged in Order Approving Merger of Bank Holding operating a chain of banking organizations, the Board, Companies and Acquisition of Nonbanking Company in addition to analyzing the one-bank holding company proposal before it, also considers the total chain and First American Bank Corporation, Kalamazoo, Michianalyzes the financial and managerial resources and gan ("First American"), a bank holding company future prospects of the chain within the context of the within the meaning of the Bank Holding Company Board's multibank holding company standards. The Act, has applied for the Board's approval under sec- Board also analyzed the banking factors of the chain in tion 3(a)(5) of the act (12 U.S.C. § 1842(a)(5)) to merge light of the controlling interests of Applicant's share- with Northern States Bancorporation, Inc., Detroit, holders in the five savings and loan institutions. After Michigan ("Northern"), under the charter and title of considering the facts of record, including undertakings First American. by Applicant's principals regarding the management of First American has also applied for the Board's Applicant and Bank, the Board views the financial and approval, under section 4(c)(8) of the act (12 U.S.C. managerial resources and future prospects of Appli- § 1843(c)(8)) and section 225.4(b)(2) of the Board's cant, Bank and the affiliated banking organizations as Regulation Y (12 C.F.R. § 225.4(b)(2)), to acquire generally satisfactory. Therefore, the Board concludes shares of Kelly Mortgage and Investment Company that considerations relating to banking factors are ("Kelly"), Detroit, Michigan, and thereby engage in consistent with approval of the application. the activity of servicing loans and other extensions of credit. This activity has been determined by the Board to be closely related to banking (12 C.F.R. ]. All banking data are as of June 30, 1980. § 225.4(a)(3)). First American's acquisition of Kelly, 2. The Elgin banking market is approximated by the southern half which is currently a wholly-owned nonbanking subsidof McHenry County, the northern third of Kane County, and includes iary of Northern, would be accomplished as a result of the City of Elgin, Illinois. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

798 Federal Reserve Bulletin • November 1981 the proposed merger of Northern with and into First amount of deposits and market share than the four American. largest banking organizations in the Detroit banking Notice of these applications, affording opportunity market. Numerous other banking organizations would for interested persons to submit comments and views, remain available for future acquisition by banking has been duly published (46 Federal Register 34703 organizations not currently represented in the Detroit (1981)). The time for filing comments and views has banking market. On the basis of these facts and the expired, and the Board has considered the applications circumstances of this case, the Board concludes that and all comments received in light of the factors set Applicant's proposal would not eliminate any signififorth in section 3(c) of the act (12 U.S.C. § 1842(c)) cant direct competition in the market. and the considerations specified in section 4(c)(8) of With respect to potential competition, it appears the act (12 U.S.C. § 1843(c)(8)). from the record that consummation of the proposed First American, the fifth largest banking organiza- merger would have no adverse effects on potential tion in Michigan, controls 23 banks with aggregate competition in any market in Michigan. As discussed deposits of about $2.05 billion, representing 5.1 per- below, Northern does not appear to be in a position to cent of the total commercial bank deposits in the pursue an expansionary policy, and thus may not be state.1 Northern controls four banks with aggregate considered to be a likely entrant into any other bankdeposits of about $885.4 million, representing 2.2 ing market in the state in the foreseeable future. percent of total deposits in commercial banks in the Accordingly, the Board concludes that the proposal state, and is the seventh largest banking organization would not eliminate any potential competition in any in Michigan. Upon consummation of the proposed market in Michigan. merger, First American would remain the fifth largest On the basis of the foregoing and other facts of banking organization in the state with aggregate depos- record, the Board concludes that consummation of the its of about $2.9 billion, representing 7.3 percent of the subject proposal would not have any significant adtotal commercial bank deposits in the state. Although verse effects on existing competition, nor would it the Board has expressed concern about the concentra- foreclose the development of potential competition in tion of banking resources in Michigan in its consider- any relevant area. Although the Board believes that ation of other applications, the Board concludes that in the proposal may have some slight adverse effects on the circumstances of this case, consummation of this existing competition, those effects when viewed in transaction would not result in significantly adverse light of the other considerations reflected in the record effects on competition in the state. are not serious enough to warrant denial of the subject First American operates one subsidiary bank2 in the proposal. Therefore, the Board considers competitive Detroit banking market,3 and is the ninth largest considerations to be consistent with approval of the banking organization in that market controlling $405 subject merger. million, or 1.9 percent, of deposits in commercial The financial and managerial resources and future banks in the market. Northern operates four subsid- prospects of First American Bank are consistent with iary banks in the market and is the fifth largest banking approval of the proposed merger. In considering the organization in the market controlling $885.3 million, financial factors presented by this case, the Board or 4.2 percent, of deposits in commercial banks in the gives substantial weight to the positive effect that market. Consummation of the proposed merger would affiliation with First American would have on the result in First American becoming the fifth largest financial condition of Northern. The Board notes, banking organization, controlling 6.1 percent of depos- however, that the Northern transaction represents a its in commercial banks in the market. very large acquisition for First American and will First American's proposal would eliminate some result in an increased burden on its capital position. existing direct competition in the Detroit banking The Board expects, therefore, that First American, market. While First American's market rank would which has embarked on an aggressive program of change, it would remain substantially smaller in the expansion over the recent past, will take action to conserve its managerial and financial resources and to improve its capital position. Considerations relating to convenience and needs 1. All banking data, unless otherwise indicated, are as of June 30, also lend weight toward approval of the merger appli- 1980. cation. Upon consummation of the transaction, First 2. One of First American's subsidiary banks located in Ann Arbor American would provide both financial and managerial established a branch in the Detroit banking market in October 1980, for which there are no reported deposits. strength to the four Northern subsidiary banks, there- 3. The Detroit banking market is approximated by Macomb, Oak- by enabling them to become more effective competiland and Wayne Counties and 33 cities and townships from St. Clair, tors and enabling them to offer new and improved Lapeer, Livingston, Washtenaw, and Monroe Counties, Michigan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 799 services to their customers. These factors lend addi- First Bancorporation of Ohio, tional weight toward approval of this application and Akron, Ohio outweigh any adverse competitive effects of the merger. Based upon the foregoing, it is the Board's judg- Order Approving Acquisition of Banks ment that the proposed merger application is in the public interest and that it should be approved. First Bancorporation of Ohio, Akron, Ohio, has ap- First American proposes to acquire Kelly in connec- plied for the Board's approval under section 3(a)(1) of tion with the merger of Northern. Kelly is currently the Bank Holding Company Act (12 U.S.C. engaged in servicing loans for Northern's subsidiary § 1842(a)(1)) to acquire 100 percent of the voting banks and other clients. First American does not shares of The First National Bank of Akron, Akron, engage directly, or through a nonbank subsidiary, in Ohio ("FNB") and of the Old Phoenix National Bank the servicing of loans and therefore no existing compe- of Medina, Medina, Ohio ("Old Phoenix") (together tition will be eliminated by the proposal. The present referred to as "Banks"). proposal does not appear to eliminate any significant Notice of the application, affording opportunity for potential competition. Accordingly, it does not appear interested persons to submit comments, has been that acquisition of Kelly by First American would given in accordance with section 3(b) of the act. The have any significant effects on competition. Acquisi- time for filing comments has expired, and the Board tion of Kelly by First American will permit Kelly to has considered the application and all comments recontinue to provide service to its customers. Based ceived in light of the factors set forth in section 3(c) of upon the foregoing and other considerations reflected the act. in the record, the Board has determined that the Applicant is a nonoperating corporation formed for balance of the public interest factors the Board is the purpose of becoming a bank holding company required to consider under section 4(c)(8) is favorable. through the acquisition of Banks. Upon acquisition of Accordingly, the application to acquire Kelly should FNB and Old Phoenix, wih deposits of $781.5 million be approved. and $170.2 million respectively, Applicant would be- On the basis of all facts of record, the applications to come the 13th largest banking organization in the state merge Northern with and into First American and to with 2.2 percent of total deposits in commercial banks acquire Kelly are approved for the reasons discussed in the state.1 above. The subject merger shall not be made before FNB is the largest of 14 banking organizations the thirtieth calendar day following the effective date competing in the Akron banking market2 and holds of this Order; and neither the subject merger, nor the 31.6 percent of total deposits in commercial banks in acquisition of Kelly shall be made later than three that market. Old Phoenix operates three branches months after the effective date of this Order, unless (with deposits of $29.2 million) in the Akron banking such period is extended for good cause by the Board or market, representing 1.3 percent of commercial bank by the Federal Reserve Bank of Chicago, pursuant to deposits in the market. Upon consummation of the delegated authority. The determination as to First proposed transaction, Applicant would control ap- American's acquisition of Kelly is subject to the proximately 32.9 percent of market deposits. While conditions set forth in section 225.4(c) of Regulation the combined market shares of Banks might normally Y, 12 C.F.R. § 225.4(c) and to the Board's authority to raise some concern about the elimination of significant require such modification or termination of the activi- existing competition, the Board notes that several ties of a holding company or any of its subsidiaries as facts in the record in this case indicate that market the Board finds necessary to assure compliance with shares alone do not accurately reflect the effects of this the provisions and purposes of the act and the Board's application on existing competition. The Board notes regulations and order issued thereunder, or to prevent that FNB's market share has declined over the past evasion thereof. several years as has the aggregate share of deposits By order of the Board of Governors, effective held by the four largest banking organizations in the September 8, 1981. market. In addition, the Summit County portion of the Voting for this action: Chairman Volcker and Governors 1. Deposit data are as of December 31, 1980. Schultz, Wallich, Partee, Teeters, and Gramley. Absent and 2. The Akron banking market is comprised of the southern twonot voting: Governor Rice. thirds of Summit and Portage Counties; Sharon Township and the southern perimeter of townships in Medina County; Milton and Chippewa Townships in Wayne County; and Lawrence Township and the western half of Lake Township in Stark County. The northern border of the Akron banking market includes Bath and Northampton (Signed) JAMES MCAFEE, Townships and the City of Stow in Summit County and Kent, [SEAL] Assistant Secretary of the Board. Ravenna, Charlestown, and Paris Townships in Portage County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

800 Federal Reserve Bulletin • November 1981 market, where FNB's branches are located, has re- of consumer and commercial automobile leasing by cently experienced relatively slow deposit growth and Old Phoenix. Considerations relating to the convea general economic decline. Applicant will be the first nience and needs of the communities to be served thus multi-bank holding company based in the Akron mar- are regarded sufficient to outweigh any slightly adket, where seven of Ohio's ten largest bank holding verse competitive effects resulting from the proposal. companies operate. While the Board continues to view Based on the foregoing and other facts of record, the commercial banking as the relevant line of commerce Board has determined that consummation of the transin determining the competitive effects of a proposal, action would be consistent with the public interest and the Board notes that numerous savings and loan that the application should be approved. associations operate in the Akron banking market and On the basis of the record, the application is apthey play a significant deposit-taking role that further proved for the reasons summarized above. The transdiminishes the competitive effects of this proposal. action shall not be consummated before the thirtieth Accordingly, the Board finds that consummation of calendar day following the effective date of this Order the proposal will have only slightly adverse effects on or later than three months after the effective date of existing competition in the Akron banking market. this Order, unless such period is extended for good FNB also operates three branches with $26.8 million cause by the Board or by the Federal Reserve Bank of in deposits in the Cleveland banking market,3 repre- Cleveland, pursuant to delegated authority. senting 0.3 percent of total commercial bank deposits By order of the Board of Governors, effective in that market. FNB is the 21st largest of 31 commer- September 8, 1981. cial banking organizations competing in the Cleveland banking market. Old Phoenix is the 12th largest bank- Voting for this action: Vice Chairman Schultz and Govering organization in the market and holds 1.3 percent of nors Partee and Rice. Voting against this action: Governor Teeters. Absent and not voting: Chairman Volcker and total deposits in commercial banks in that market. As a Governors Wallich and Gramley. result of this proposal, Applicant would become the 10th largest organization in the Cleveland market with (Signed) WILLIAM W. WILES, 1.6 percent of market deposits. The Board notes that [SEAL] Secretary of the Board. the lead banks of three of Ohio's four largest bank holding companies compete in the market, with the four largest organizations in the market collectively First Dodge City Bancshares, Inc., controlling 73.5 percent of market deposits. As a result Dodge City, Kansas of the proposal, overall concentration in the Cleveland banking market would increase only slightly and 30 Order Denying Acquisition of Bank competitors would remain in the market. Thus, in the Board's view, consummation of the application will First Dodge City Bancshares, Inc., Dodge City, Kannot have any substantially adverse effect on existing sas, has applied for the Board's approval under section competition in the Cleveland banking market. In addi- 3(a)(1) of the Bank Holding Company Act, as amendtion, the Board finds that consummation of the propos- ed, 12 U.S.C. § 1842(a)(1), to acquire 100 percent of al would not have any adverse effect on potential the voting shares of First National Bancshares of competition in any relevant area. Accordingly, on the Dodge City, Inc., Dodge City, Kansas ("Company"), basis of the above and other facts of record, the Board and thereby indirectly acquire 87.6 percent of the does not regard the effect of the proposal on competi- voting shares of First National Bank and Trust Comtion in either market to be so substantially adverse as pany in Dodge City, Dodge City, Kansas ("Bank"). to warrant denial of the application. Notice of the application, affording an opportunity The financial and managerial resources and future for interested persons to submit comments and views, prospects of Applicant and Banks are considered has been giveo in accordance with section 3(b) of the satisfactory. Consummation of the proposal would act. The time for filing comments and views has permit Banks to expand their services through in- expired, and the Board has considered all comments creased lending capability, increased loan experience received in light of the factors set forth in section 3(c) available to Old Phoenix, and through the introduction of the act. Applicant, a nonoperating corporation with no subsidiaries, was organized for the purpose of becoming a bank holding company by acquiring Company and 3. The Cleveland banking market comprises all of Cuyahoga, Lake, Lorain, and Geauga Counties, the northern third of Summit County, thereby indirectly acquiring Bank. Upon acquisition of all but the southern-most tier of townships in Medina County, and the Bank (total deposits of $55.7 million), Applicant would City of Vermilion, which straddles the border of Lorain and Erie control the 48th largest bank in Kansas, representing Counties. 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Legal Developments 801 less than one percent of total deposits in commercial percent of the original purchase price of the bank to be banks in the state.1 acquired. By so structuring the debt, there is less Bank is the second largest of seven banking organi- potential for straining the financial resources of the zations in the relevant market and holds 32.0 percent banking organization, and management is given greatof the total deposits in commercial banks in that er incentive to conduct the affairs of the banking market.2 Although a director of bank is also associated organization in a safe and sound manner. with another banking organization in Kansas, this The Board believes that permitting Applicant to organization operates in a separate banking market assume the debt personally incurred by Applicant's from Bank. Based on the facts of record, consumma- principals in connection with the formation of Compation of the proposed transaction apparently would not ny would interrupt the process of restoring Applicant's result in any adverse effects on competition or in- ability to serve as a source of strength to its subsidiary crease the concentration of banking resources in any bank.3 In particular, the Board notes that as a result of relevant area. Thus, the Board concludes that compet- consummation of this proposal, Applicant's debt-toitive considerations are consistent with approval of the equity ratio would increase significantly, thereby givapplication. ing rise to the risks associated with high leveraging. In 1977, Applicant's principals formed Company to Such risks include a significant reduction in the parent acquire control of Bank. At that time, Bank's purchase company's ability to use the debt and capital markets price was 100 percent debt-financed, and 75 percent of to aid its subsidiary bank, should the need arise. In that debt was assumed directly by Company. By the addition, the Board notes that the increased debtinstant proposal, Applicant's principals propose to burden that would result from consummation of this place the remaining 25 percent of the original acquisi- proposal could adversely affect Bank's capital-to-astion debt in Applicant, thereby eliminating the person- sets ratio, which is now only marginally acceptable. In al debt they incurred in connection with the formation light of the above and the other facts of record, the of Company in 1977. Applicant intends to service this Board views the financial consequences of consummaadditional debt, as well as Company's debt, by divi- tion of this proposal with concern and believes that dends from Bank as well as from the tax benefits these adverse financial factors warrant denial. The associated with holding company formation. managerial resources of Applicant, Company, and The Board has indicated on previous occasions that Bank, although generally satisfactory, do not lend a bank holding company should serve as a source of weight toward approval of the proposed transaction. strength to its subsidiary bank, and that the Board The Board is prepared to permit relatively high would closely examine the condition of an applicant in levels of debt in order to facilitate the transfer of each case with these considerations in mind. Specifi- ownership of small banks, as discussed above. Howcally, the Board's experience indicates that a bank ever, the transfer of Bank's ownership from Appliholding company with a substantial amount of debt cant's principals to a bank holding company was generally lacks the financial flexibility to meet unex- accomplished via the formation of Company in 1977, pected problems of its subsidiary bank. However, the and no change in the ownership of Bank or Company Board has been willing to approve the formation of is contemplated at this time. Moreover, no changes in one-bank companies with substantial debt in order to the services offered by Bank are expected to follow facilitate the transfer of local ownership of small from consummation of the proposed transaction. Concommunity banks to one-bank holding companies un- sequently, the Board concludes that considerations der similar control, provided the Applicant demon- relating to the convenience and needs of the communistrates its ability to become a source of strength to its ty to be served lend no weight toward approval of the subsidiary bank within a relatively short period of proposal. Thus, based on the criteria the Board must time, such as by reducing its debt-to-equity ratio to a consider under the act, there are no factors favoring reasonable level (generally, 30 percent) within 12 years approval of this application, and the Board's review of of consummation. the banking factors, as summarized above, favors Moreover, the Board believes that in order to be denial. consistent with principles of safe and sound banking, On the basis of the above, and all the facts of record, the amount of acquisition debt incurred in a one-bank the Board concludes that banking considerations preholding company formation should not exceed 75 sent adverse factors bearing upon Bank and Company, 3. Emerson First National Company, 67 FEDERAL RESERVE BUL- 1. All banking data are as of December 31, 1980. LETIN 344 (1981). Moreover, unlike the situation presented in Emer- 2. The relevant banking market is approximated by Ford County, son, no independent source of financial strength is being added, Kansas. because Applicant is a shell corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

802 Federal Reserve Bulletin • November 1981 and that such adverse factors are not outweighed by approximately 2.0 percent of the total deposits in any benefits to the public or by the convenience and commercial banks in the market. Applicant's subsidneeds of the community to be served. Accordingly, the iary, Joplin Bank, is located approximately 22 miles Board's judgment is that approval of the application from Bank in the same banking market, and holds 5.6 would not be in the public interest, and that the percent of commercial bank deposits. Acquisition of application should be denied. On the basis of the facts Bank would increase Applicant's share of market of record, the application is denied for the reasons deposits to about 7.6 percent, and change its rank in summarized above. the market from seventh to sixth. The Board notes that By order of the Board of Governors, effective this proposal involves a restructuring of Bank's own- September 14, 1981. ership, inasmuch as principals of Applicant acquired Bank in April 1978. While approval of this proposal Voting for this action: Vice Chairman Schultz and Gover- would serve to entrench the existing relationship benors Wallich, Partee, Teeters, and Gramley. Absent and not tween Bank and Joplin Bank and to reduce the likelivoting: Chairman Volcker and Governor Rice. hood that they would become independent competitors in the future, based upon all the facts of record, (Signed) WILLIAM W. WILES, including the relatively small market shares of Joplin [SEAL] Secretary of the Board. Bank and Bank at the time Applicant's principal acquired Bank,3 it appears that no significant amount of competition would be eliminated by consummation First State Holding Company, Inc., of the proposal. Although Applicant's principal is Joplin, Missouri affiliated with another bank, First National Bank of Butler, Butler, Missouri ("Butler Bank"), Butler Bank Order Denying Acquisition of Bank does not compete in the same market as Bank. Accordingly, the Board concludes that consummation of First State Holding Company, Inc., Joplin, Missouri, a the proposal would not have any significant adverse registered bank holding company, has applied for the effects upon existing or potential competition, and Board's approval under section 3(a)(3) of the Bank would not increase the concentration of banking re- Holding Company Act (12 U.S.C. § 1842(a)(3)) to sources in any relevant area. Thus, competitive conacquire 83 percent of the voting shares of First Nation- siderations are consistent with approval of the applicaal Bank of Sarcoxie, Sarcoxie, Missouri ("Bank"). tion. Notice of the application, affording an opportunity The Board has indicated on previous occasions that for interested persons to submit comments and views, a holding company should serve as a source of finanhas been given in accordance with section 3(b) of the cial and managerial strength to its subsidiary bank(s), act. The time for filing comments and views has and that the Board would closely examine the condiexpired, and the Board has considered the application tion of an applicant in each case with this considerand all comments received in light of the factors set ation in mind. Furthermore, when the principal of an forth in section 3(c) of the act (12 U.S.C. § 1842(c)). applicant is engaged in operating a chain of banking Applicant is a one-bank holding company by virtue organizations, the Board, in addition to analyzing the of its control of First State Bank of Joplin, Joplin, one-bank holding company proposal before it, also Missouri ("Joplin Bank") (deposits of about $30.2 considers the total chain and analyzes the financial and million).1 Applicant is the 104th of 501 commercial managerial resources and future prospects of the instibanking organizations in Missouri, holding 0.1 percent tutions comprising the chain. In this case, the Board of total commerical bank deposits in the state. Acqui- concludes that the record in this application presents sition of Bank (deposits of about $10.6 million) would adverse considerations that warrant denial of the prohave no appreciable effect upon the concentration of posal to acquire Bank. banking resources in Missouri. With regard to managerial considerations, the Board Bank, the 12th largest of 18 banking organizations notes that Applicant acquired Joplin Bank in October competing in the Joplin banking market,2 controls 1980, and that Applicant's principal has controlled Joplin Bank since 1974. During this time, Joplin Bank has had a history of repeated violations of certain 1. Unless otherwise indicated, all banking data are as of September 30, 1980. 2. The Joplin banking market is approximated by Jasper and 3. As of December 31, 1977, Bank (deposits of about $8.7 million) Newton Counties, Missouri, and a portion of Cherokee County, and Joplin Bank (deposits of about $17.5 million) together controlled Kansas. 5.5 percent of the deposits in commercial banks in the market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 803 consumer compliance laws and regulations, as well as consumer compliance laws and regulations, consider- Treasury Department regulations, and has repeatedly ations relating to the convenience and needs of the failed to take appropriate actions to correct the viola- community weigh toward denial of this application. tions. From the record, it appears that Joplin Bank's On the basis of all of the facts of record, the Board performance in this regard is due primarily to certain concludes that the banking considerations involved in management policies and practices of Applicant's this proposal present adverse factors bearing upon the principal. In the Board's judgment, Joplin Bank's banking factors of Applicant and Bank. These adverse repeated violations are regarded as serious matters factors are not outweighed by any procompetitive that reflect adversely on the managerial resources of effects or by benefits that would result in better Applicant. Inasmuch as the Board expects Applicant serving the convenience and needs of the community. to serve as a source of managerial strength to Bank, Accordingly, the Board's judgment is that approval of and in view of Joplin Bank's history of noncompli- the application would not be in the public interest and ance, the Board is unable to conclude that the manage- the application should be denied. rial resources of Applicant are such as to warrant On the basis of the facts of record, the application is approval of this application. Applicant has submitted denied for the reasons summarized above. information related to actions being taken to improve By order of the Board of Governors, effective Joplin Bank's performance and to prevent future viola- September 8, 1981. tions, but in view of past failures by Applicant's principal to correct the violations, the Board believes Voting for this action: Vice Chairman Schultz and Goverthat Applicant's principal has not demonstrated a nors Partee, Teeters, and Rice. Absent and not voting: record of performance sufficient to mitigate the ad- Chairman Volcker and Governors Wallich and Gramley. verse managerial considerations derived from Joplin Bank's past performance. (Signed) WILLIAM W. WILES, With respect to financial considerations, the Board [SEAL] Secretary of the Board. regards the financial resources of Applicant, Joplin Bank, Butler Bank, and Bank as generally satisfactory. However, the Board notes that Applicant would incur a sizeable debt in connection with its proposed ORDERS ISSUED UNDER SECTION 4 OF BANK acquisition of Bank's shares, including $500,000 to HOLDING COMPANY ACT provide additional equity capital to Joplin Bank. Applicant proposes to service this debt over a 10-year First City Bancorporation of Texas, Inc., period with funds derived from dividends, manage- Houston, Texas ment fees, and tax benefits to be derived from filing a consolidated tax return. However, in light of Joplin Order Approving Acquisition of Shares of Thompson Bank's historical performance, including its high rate Tuckman Andersen, Inc. of asset growth and decline in its capital-to-assets ratio since its acquisition by Applicant in October 1980, the First City Bancorporation of Texas, Inc., Houston, Board is concerned that Applicant may have some Texas, a bank holding company within the meaning of difficulty in attaining sufficient earnings to service its the Bank Holding Company Act, has applied for debt while maintaining adequate capital in Joplin Bank approval under section 4(c)(8) of the act (12 U.S.C. and Bank, as well as to afford Applicant the flexibility § 1843(c)(8)) and section 225.4(b)(2) of the Board's to meet any unforeseen problems that might arise in Regulation Y (12 C.F.R. § 225.4(b)(2)), to acquire Bank and Joplin Bank. The Board's concern about eight percent of the voting shares of Thompson Tuck- Applicant's financial resources and future prospects is man Andersen, Inc., Palo Alto, California ("Compaheightened by the adverse managerial considerations ny"), a company that engages in investment adviser discussed above. Accordingly, the Board's judgment activities. Such activities have been determined by the is that considerations relating to the banking factors of Board to be closely related to banking (12 C.F.R. Applicant and Bank are so adverse as to warrant § 225.4(a)(5)). denial of the application. Notice of the application, affording opportunity for No significant changes in Bank's operations or interested persons to submit comments on the public services are expected to be made as a result of this interest factors, has been duly published. The time for proposal. Applicant's record of compliance under the filing comments has expired, and application and all Community Reinvestment Act is satisfactory, as are comments received have been considered in light of the records of its subsidiary and affiliated banks. the public interest factors set forth in section 4(c)(8) of However, in view of Applicant's past disregard for the act (12 U.S.C. § 1843(c)(8)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

804 Federal Reserve Bulletin • November 1981 Applicant controls 49 banking subsidiaries with ag- section 4(c)(8) of the act (12 U.S.C. § 1843(c)(8)) and gregate deposits of approximately $8.5 billion.1 Com- section 225.4(b)(2) of the Board's Regulation Y pany, which controls assets of $197 thousand (as of (12 C.F.R. § 225.4(b)(2)) for the Board's approval to April 30, 1981), provides financial advice to individ- engage de novo through its subsidiary Banco Incorpouals. In connection with the application, it has been rated ("Banco"), Minneapolis, Minnesota, in providtaken into consideration whether the acquisition of ing audit services to nonaffiliated banks. The proposed shares of Company can reasonably be expected to geographic areas to be served are the states of Coloraproduce benefits to the public that outweigh possible do, Idaho, Illinois, Iowa, Kansas, Michigan, Minnesoadverse effects.2 Having considered the record of this ta, Missouri, Montana, Nebraska, North Dakota, application in light of the factors in the act, it has been South Dakota, Wisconsin, and Wyoming. determined that the balance of the public interest Notice of the application, affording opportunity for factors required to be considered under section 4(c)(8) interested persons to submit comments, has been is favorable. On the basis of these considerations, the given in accordance with section 4 of the act (46 application is approved. This determination is subject Federal Register 31355 (1981)). The time for filing to the conditions set forth in section 225.4(c) of comments has expired, and the Board has considered Regulation Y and to the Board's authority to require the application and all comments received in light of such modification or termination of the activities of a the considerations specified in section 4(c)(8) of the holding company or any of its subsidiaries as found act. necessary to assure compliance with the provisions Applicant, the second largest banking organization and purposes of the Act and the Board's regulations in Minnesota, controls 87 banks located in seven states and orders issued thereunder, or to prevent evasions with consolidated deposits of $10.2 billion.1 Through thereof. its nonbank subsidiaries, Applicant engages in such The transaction shall not be consummated later than activities as providing financing and trust services. three months after the effective date of this Order, Banco is currently engaged in the activities of providunless such period is extended for good cause by the ing audit services to banking and nonbanking subsid- Board or by the Federal Reserve Bank of Dallas acting iaries of Applicant, and providing computer software pursuant to delegated authority. to nonaffiliated banks to aid those bank customers in By order of the Secretary of the Board of Governors performing internal audits. of the Federal Reserve System, acting pursuant to The services proposed to be provided through delegated authority, effective September 4, 1981. Banco include (1) basic audit services, such as verification of cash and collateral; confirmation of travelers (Signed) WILLIAM W. WILES, checks, Series "E" Bonds, investments, and "due [SEAL] Secretary of the Board. from" bank accounts; and proof of savings and checking accounts, loan and liability ledgers, and overdrafts, to the client bank's general ledger or other controls; (2) Northwest Bancorporation, evaluating the client bank's internal controls; and (3) Minneapolis, Minnesota reviewing the client bank's practices in light of the audit and evaluation of controls. The Board regards Order Approving Application to Perform Certain these services as within the scope of "providing Bank Audit Services management consulting advice to nonaffiliated banks," which the Board has determined to be a Northwest Bancorporation, Minneapolis, Minnesota, permissible nonbanking activity for bank holding coma bank holding company within the meaning of the panies in section 225.4(a)(12) of Regulation Y Bank Holding Company Act, has applied pursuant to (12 C.F.R. § 225.4(a)(12)).2 In order to approve an application by a bank holding company to engage in a nonbanking activity, the Board must find that the applicant's performance of 1. Banking data are as of March 31, 1981, unless otherwise noted. the activities "can reasonably be expected to produce 2. Applicant states that at least two, and not more than four, other banking organizations will each purchase at least eight percent of the benefits to the public, such as greater convenience, shares of Company. Three individuals who founded Company will increased competition, or gains in efficiency, that retain 60 percent of Company's voting shares, and those individuals, rather than Applicant or other banking organizations, will be responsible for managing the operations of Company. In view of the facts of this case, including the size of Company, the small share of voting stock to be purchased by Applicant, and the continuing management 1. Data are as of March 31, 1981. of Company by individuals not affiliated with Applicant, the proposed 2. The Board has previously interpreted the activity of providing investment by Applicant is regarded as the functional equivalent of a advice concerning auditing and accounting procedures as being within purchase of a service rather than as part of a joint venture among the scope of management consulting for purposes of section 4 of the nonaffiliated banking organizations. act. 12 C.F.R. § 225.131. 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Legal Developments 805 outweigh possible adverse effects, such as undue ance of such audits and the other proposed services by concentration of resources, decreased or unfair com- Applicant's subsidiary would result in increased competition, conflicts of interests, or unsound banking petition in the provision of these services, because practices." The Board has recognized that the provi- Applicant would be a new entrant into the product sion of management consulting advice by a bank market. Accordingly, the Board finds that the balance holding company to nonaffiliated banks may result in of public interest factors it must consider under secconflicts of interests or undue influence over a client tion 4(c)(8) of the act is favorable and that the applicabank. Accordingly, the Board has prohibited bank tion should be approved. holding companies engaged in bank management con- Based on the record of this application and for the sulting activities from performing services for client reasons summarized above, the application is apbanks on a daily or continuing basis, except as may be proved. This determination is subject to the considernecessary to instruct the client bank to perform such ations set forth in section 225.4(c) of the Board's services for itself (12 C.F.R. § 225.4(a)(n.9)). Regulation Y, and to the Board's authority to require Applicant has committed that Banco will contract to reports by and make examinations of bank holding perform an audit for a client bank on a one-time basis companies and their subsidiaries, and to require such only, and that such contracts will not contemplate any modification or termination of the activities of a bank ongoing relationship between Applicant and the client holding company or any of its subsidiaries as the bank. Applicant has also committed to comply with all Board finds necessary to assure compliance with the conditions imposed by section 225.4(a)(12) of Regula- provisions and purposes of the act and the Board's tion Y for bank management consulting, and to take Orders and regulations issued thereunder, or to precertain actions to protect against conflicts of interests vent evasion thereof. by Banco and its employees. On the basis of these The activities approved by the Board shall be comcommitments and other facts of record, the Board menced not later than three months after the effective concludes that the proposed bank auditing activity date of this Order, unless such period is extended for would conform with all criteria for permissible bank good cause by the Board or by the Federal Reserve management consulting, and that performance of these Bank of Minneapolis, pursuant to delegated authority. activities by Applicant does not appear likely to result By order of the Board of Governors, effective in any adverse effects. September 9, 1981. Applicant states that the proposed audit services are intended to assist banks' boards of directors to meet Voting for this action: Vice Chairman Schultz and Govertheir legal obligation regarding "directors' examina- nors Partee, Teeters, and Rice. Absent and not voting: tions," by which a bank director is apprised of the Chairman Volcker and Governors Wallich and Gramley. condition and management policies of a bank. These services are generally performed by outside auditors when a bank's directors lack sufficient experience and (Signed) JAMES MCAFEE, competence to conduct such examinations. Perform- [SEAL] Assistant Secretary of the Board. ORDERS APPROVING APPLICATIONS UNDER THE BANK HOLDING COMPANY ACT AND BANK MERGER ACT By the Board of Governors During September 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. Section 3 Board action Applicant Bank(s) (effective date) First Bankers Corporation of Florida, Boca Raton National Bank, September 8, 1981 Pompano Beach, Florida Boca Raton, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

806 Federal Reserve Bulletin • November 1981 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date First City Bancorporation of Texas, Inc., The Fort Bend National Bank of Rich- September 8, 1981 Houston, Texas mond, Richmond, Texas First City Bancorporation of Texas, Inc., The Lake Jackson Bank of Lake Jack- September 28, 1981 Houston, Texas son, Texas, Lake Jackson, Texas I.C.B. Holding, N.V., Intercontinental Bank, September 23, 1981 Oranjested, Netherlands Antilles Miami, Florida Intercontinental Bank Holding Company, Miami, Florida International Bank-Holding Co., The International Bank of Miami, N.A. September 9, 1981 N.V., The, South Miami, Florida South Miami, Florida International Bank of Florida, Inc., The, The International Bank of Miami, N.A. September 9, 1981 South Miami, Florida South Miami, Florida Mercantile Bankshares Corporation, Calvert Bank and Trust Company, September 15, 1981 Baltimore, Maryland Prince Frederick, Maryland Mercantile Texas Corporation, Garland Bank & Trust Co., September 23, 1981 Dallas, Texas Garland, Texas Southwest Bancshares, Inc., The First National Bank of Euless, September 3, 1981 Houston, Texas Euless, Texas Texas American Bancshares, Inc., Farmers Branch Bank, September 21, 1981 Fort Worth, Texas Farmers Branch, 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 ABN Company, Inc., LaSalle National Corporation, Chicago August 28, 1981 Wilmington, Delaware Chicago, Illinois LaSalle National Bank, Chicago, Illinois Banc One Corporation, The Union National Bank of Cleveland September 4, 1981 Columbus, Ohio Youngstown, Youngstown, Ohio Banc 1 Minnesota, First National Bank of Wayzata, Minneapolis September 9, 1981 Wayzata, Minnesota Wayzata, Minnesota Blakely Investment Company, First Citizens Bank, Atlanta September 15, 1981 Griffin, Georgia Fayetteville, Georgia Commercial Bancshares, Inc., First Citizens Bank, Atlanta September 15, 1981 Griffin, Georgia Fayetteville, Georgia Byers Bancshares, Inc., Byers State Bank, Kansas City September 10, 1981 Crete, Nebraska Byers, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 807 Section 3—Continued Reserve Effective AApppplliiccaanntt BBaannkk((ss)) Bank date CB&T Bancshares, Inc., The Coastal Bank of Georgia, Atlanta September 18, 1981 Columbus, Georgia St. Simons Island, Georgia Cache Bancshares, Inc., First State Bank, Kansas City September 17, 1981 Cache, Oklahoma Cache, Oklahoma Cedar Linn Investment Co., Lisbon Bank and Trust Company, Chicago September 11, 1981 Lisbon, Iowa Lisbon, Iowa Celina Bancorp, Inc., The First State Bank, Dallas September 2, 1981 Celina, Texas Celina, Texas Central Bank Shares, Inc., Bank of Central Florida, Atlanta September 23, 1981 Orlando, Florida Orlando, Florida Central Wisconsin Bankshares, The First National Bank at Chicago September 22, 1981 Inc., Neillsville, Wausau, Wisconsin Neillsville, Wisconsin Citizens Bancshares Corpora- The Citizens National Bank St. Louis September 24, 1981 tion, of Bedford, Bedford, Indiana Bedford, Indiana Clint Banc Corp., Bartelso Savings Bank, St. Louis September 14, 1981 Bartelso, Illinois Bartelso, Illinois Commerce Bancshares, Inc., Commerce Bank, Kansas City August 31, 1981 Oklahoma City, Oklahoma Oklahoma City, Oklahoma Continental National Banc- Continental National Bank, Dallas September 9, 1981 shares, Inc., El Paso, Texas El Paso, Texas County National Bancorpora- Security Bank of Manchester St. Louis August 31, 1981 tion, Manchester, Missouri Clayton, Missouri Dalhart Bancshares, Inc., Citizens State Bank of Dalhart, Dallas September 1, 1981 Dalhart, Texas Dalhart, Texas Fidelity Corp., The Fidelity Bank of Indiana, Chicago August 27, 1981 Carmel, Indiana Carmel, Indiana First Enid, Inc., First National Bank and Trust Kansas City September 14, 1981 Enid, Oklahoma Company of Enid, Enid, Oklahoma First Financial Bancorporation, Westview National Bank, Dallas September 1, 1981 Inc., Waco, Texas Waco, Texas First Financial Bancshares, Merchants & Planters Bank & St. Louis September 11, 1981 Inc., Trust Company, Arkadelphia, Arkansas Arkadelphia, Arkansas First National Charter Corpora- First National Bank of Lebanon, Kansas City September 4, 1981 tion, Lebanon, Missouri Kansas City, Missouri First Pioneer Bank Corp., The Farmers State Bank of Brush, Kansas City September 14, 1981 Brush, Colorado Brush, Colorado First State Financial Corpora- First State Bank & Trust Com- Kansas City August 21, 1981 tion, pany, Larned, Kansas Larned, Kansas First University Corporation, First National Bank of West Dallas September 25, 1981 Houston, Texas University Place, Houston, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

808 Federal Reserve Bulletin • November 1981 Section 3—Continued Reserve Effective AApppplliiccaanntt BBaannkk((ss)) bank date Founders Bancorporation, Inc., Founders Bank & Trust Company, Kansas City September 4, 1981 Oklahoma City, Oklahoma Oklahoma City, Oklahoma Geneva Bancshares, Inc., The American Bank, Atlanta September 23, 1981 Geneva, Alabama Geneva, Alabama Illinois Center Bancorporation, First Security Bank of Glen Ellyn, Chicago September 23, 1981 Inc., Glen Ellyn, Illinois Glen Ellyn, Illinois Jacinto City Bancshares, Inc., Jacinto City Bank, Dallas September 21, 1981 Houston, Texas Houston, Texas Johnson Bancshares, Inc., Root River State Bank, Minneapolis September 11, 1981 Chatfield, Minnesota Chatfield, Minnesota Lake Area Bancshares, Inc., Lake Area State Bank, Atlanta August 21, 1981 Hawthorne, Florida Hawthorne, Florida Leland National Bancorp, Inc., Leland National Bank, Chicago September 18, 1981 Leland, Illinois Leland, Illinois Metro Shares, Inc., First Metropolitan Bank Atlanta September 21, 1981 Metairie, Louisiana Metairie, Louisiana Midlands Corporation, The Bank Holding Company of Kansas City September 1, 1981 Santa Fe, New Mexico Santa Fe, Santa Fe, New Mexico Bank of Santa Fe, Santa Fe, New Mexico Montgomery County Banc- Montgomery County Bank, N.A., Dallas September 23, 1981 shares, Inc., Spring, Texas Spring, Texas Nebanco, Inc., American State Bank, Kansas City September 1, 1981 Wallace, Nebraska McCook, Nebraska Orange County Banking Corp., Bank of West Orange, Atlanta September 23, 1981 Ocoee, Florida Ocoee, Florida Parmer County Financial Corpo- Bovina Bancshares, Inc. Dallas September 14, 1981 ration, Bovina, Texas Bovina, Texas Peoples Bancshares, Inc., The Peoples Bank, Atlanta September 18, 1981 Lebanon, Tennessee Lebanon, Tennessee Permian Financial Corporation, First State Bank, Dallas September 4, 1981 Crane, Texas Crane, Texas Poplar Bluff Bancshares, Inc., First National Bank of Poplar St. Louis September 17, 1981 Poplar Bluff, Missouri Bluff, Poplar Bluff, Missouri Reagan Bancshares, Inc., Reagan State Bank, Dallas September 21, 1981 Big Lake, Texas Big Lake, Texas Red Oak Bancshares, Inc., The Bank of Red Oak, Kansas City August 28, 1981 Red Oak, Oklahoma Red Oak, Oklahoma Rio Grande Bancshares, Inc., First National Bank of Dona Ana Dallas September 17, 1981 Las Cruces, New Mexico County, Las Cruces, New Mexico Rupp Bancshares, Inc., Farmers National Bank, Kansas City August 21, 1981 Hays, Kansas Victoria, Kansas State Bancshares of Ulen, Inc., Northwestern State Bank of Ulen, Minneapolis August 31, 1981 Ulen, Minnesota Ulen, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 809 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date State Exchange Bancshares, The State Exchange Bank Kansas City September 17, 1981 Inc., Lamont, Oklahoma Lamont, Oklahoma Tahoka First Bancorp, Inc., The First National Bank of Dallas September 2, 1981 Tahoka, Texas Tahoka, Tahoka, Texas United Bancorporation of Wyo- Jackson State Bank, Kansas City September 15, 1981 ming, Inc., Jackson, Wyoming Jackson, Wyoming Washita Bancshares, Inc., Washita State Bank, Kansas City September 11, 1981 Burns Flat, Oklahoma Burns Flat, Oklahoma Western Bancshares of Las Cru- Western Bank, Dallas September 18, 1981 ces, Inc., Las Cruces, New Mexico Las Cruces, New Mexico Wilmont Bankshares, Inc., First Wyoming Bank of Wilmont, Minneapolis August 28, 1981 Lismore, Minnesota Wilmont, Minnesota Sections 3 and 4 Nonbanking Reserve Effective Applicant Bank(s) company Bank date (or activity) Burt Bancshares, Inc., Burt Savings Bank, general insurance activ- Chicago September 16, 1981 Burt, Iowa Burt, Iowa ities in a town with a population of less than 5,000 Freeborn Financial First State Bank of Minneapolis September 1, 1981 Services, Inc., Freeborn, Freeborn, Minnesota Freeborn, Minnesota Freeborn Agency, Inc., general insurance activ- Freeborn, Minnesota ities in a community with a population not exceeding 5,000 Oppegard Agency, American State Bank Minneapolis September 22, 1981 Inc., of Erskine, Hinckley, Minnesota Erskine, Minnesota Clay County State Bank, Dilworth, Minnesota Twin Valley State Bank, Twin Valley, Minne- Erskine Agency, Inc., sota Erskine, Minnesota Warner Bancorp, Inc., The Security Bank, Warner Insurance Kansas City September 21, 1981 Warner, Oklahoma Warner, Oklahoma Agency, Inc., Warner, Oklahoma Wheatland Bancorpor- First Trust and Sav- First T&S Agency, Chicago August 31, 1981 ation, ings Bank, Wheatland, Iowa Wheatland, Iowa Wheatland, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

810 Federal Reserve Bulletin • November 1981 Section 4 Nonbanking Reserve Effective Applicant company Bank date (or activity) Pack wood Financial, Inc., to engage directly in leasing person- Chicago August 28, 1981 Packwood, Iowa al property Williams-Newlin Insurance Agency, Packwood, Iowa By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date Chemical Bank, Bankers Trust Company, New York September 17, 1981 New York City New York City PENDING CASES INVOLVING THE BOARD OF GOVERNORS* *This list of pending cases does not include suits Securities Industry Association v. Board of Goveragainst the Federal Reserve Banks in which the Board nors, et al., filed October 1980, U.S.D.C for the of Governors is not named a party. District of Columbia. Securities Industry Association v. Board of Gover- Bank Stationers Association, Inc., et al v. Board of nors, et al., filed October 1980, U.S.C.A. for the Governors, filed July 1981, U.S.D.C. for the North- District of Columbia. ern District of Georgia. A. G. Becker, Inc., v. Board of Governors, et al., filed Public Interest Bounty Hunters v. Board of Gover- October 1980, U.S.D.C. for the District of Columnors, et al., filed June 1981. U.S.D.C. for the bia. Northern District of Georgia. A. G. Becker, Inc., v. Board of Governors, et al., filed Edwin F. Gordon v. John Heimann, et al., filed May October 1980, U.S.C.A. for the District of Colum- 1981, U.S.C.A. for the Fifth Circuit. bia. Louis J. Roussell v. Board of Governors, filed May Independent Insurance Agents of America and Inde- 1981, U.S.C.A. for the District of Columbia. pendent Insurance Agents of Missouri v. Board of Wilshire Oil Company of Texas v. Board of Gover- Governors, filed September 1980, U.S.C.A. for the nors, et al., filed April 1981, U.S.C.A. for the Third Eighth Circuit. Circuit. Nebraska Bankers Association, et al. v. Board of People of the State of Arkansas v. Board of Gover- Governors, et al., filed September 1980, U.S.D.C. nors, et al., filed March 1981, U.S.C.A. for the for the District of Nebraska. Western District of Arkansas. Republic of Texas Corporation v. Board of Governors, First Bank & Trust Company v. Board of Governors, filed September 1980, U.S.C.A. for the Fifth Cirfiled February 1981, U.S.D.C. for the Eastern Dis- cuit. trict of Kentucky. A. G. Becker, Inc. v. Board of Governors, et al., filed Ellis E. St. Rose & James H. Sibbet v. Board of August 1980, U.S.D.C. for the District of Columbia. Governors, filed February 1981, U.S.D.C. for the Otero Savings and Loan Association v. Board of District of Columbia. Governors, filed August 1980, U.S.D.C. for the Option Advisory Service, Inc. v. Board of Governors, District of Colorado. et al., filed February 1981, U.S.C.A. for the Second Edwin F. Gordon v. Board of Governors, et al., filed Circuit. August 1980, U.S.C.A. for the Fifth Circuit. 9 to 5 Organization for Women Office Workers v. U.S. League of Savings Associations v. Depository Board of Governors, filed December 1980, Institutions Deregulation Committee, et al., filed U.S.D.C. for the District of Massachusetts. June 1980, U.S.D.C. for the District of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 811 Berkovitz, et al. v. Government of Iran, et al., filed Security Bancorp and Security National Bank v. June 1980, U.S.D.C. for the Northern District of Board of Governors, filed March 1978, U.S.C.A. for California. the Ninth Circuit. Mercantile Texas Corporation v. Board of Governors, Roberts Farms, Inc. v. Comptroller of the Currency, filed May 1980, U.S.C.A. for the Fifth Circuit. et al., filed November 1975, U.S.D.C. for the South- Corbin, Trustee v. United States, filed May 1980, ern District of California. United States Court of Claims. Darnell Hilliard v. G. William Miller, et al., filed Louis J. Roussel v. Comptroller of the Currency and September 1976, U.S.C.A. for the District of Co- Federal Reserve Board, filed April 1980, U.S.D.C. lumbia. for the District of Columbia. David Merrill, et al. v. Federal Open Market Commit- County National Bancorporation and TGB Co. v. tee, filed May 1975, U.S.D.C. for the District of Board of Governors, filed September 1979, Columbia. U.S.C.A. for the Eighth Circuit. Donald W. Riegle, Jr. v. Federal Open Market Committee, filed July 1979, U.S.D.C. for the District of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics CONTENTS Domestic Financial Statistics WEEKLY REPORTING COMMERCIAL BANKS A3 Monetary aggregates and interest rates Assets and liabilities A4 Reserves of depository institutions, reserve, A18 All reporting banks bank credit A19 Banks with assets of $1 billion or more A5 Reserves and borrowings of depository A20 Banks in New York City institutions A21 Balance sheet memoranda A6 Federal funds and repurchase agreements of A22 Branches and agencies of foreign banks large member banks A23 Commercial and industrial loans A24 Gross demand deposits of individuals, partnerships, and corporations POLIC Y INS TR UMENTS A7 Federal Reserve Bank interest rates FINANCIAL MARKETS A8 Depository institutions reserve requirements A9 Maximum interest rates payable on time and A25 Commercial paper and bankers dollar savings deposits at federally insured institutions acceptances outstanding A10 Federal Reserve open market transactions A26 Prime rate charged by banks on short-term business loans A26 Terms of lending at commercial banks FEDERAL RESERVE BANKS A27 Interest rates in money and capital markets A28 Stock market—Selected statistics All Condition and Federal Reserve note statements A29 Savings institutions—Selected assets and A12 Maturity distribution of loan and security liabilities holdings FEDERAL FINANCE MONETARY AND CREDIT AGGREGATES A30 Federal fiscal and financing operations A12 Bank debits and deposit turnover A31 U.S. budget receipts and outlay A13 Money stock measures and components A32 Federal debt subject to statutory limitation A14 Aggregate reserves of depository institutions A32 Gross public debt of U.S. Treasury—Types and and member bank deposits ownership A15 Loans and securities of all commercial banks A33 U.S. government marketable securities— Ownership, by maturity A34 U.S. government securities dealers— COMMERCIAL BANKS Transactions, positions, and financing A35 Federal and federally sponsored credit A16 Major nondeposit funds agencies—Debt outstanding A17 Assets and liabilities, last Wednesday-of-month series Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • November 1981 SECURITIES MARKETS AND A56 Foreign branches of U.S. banks—Balance sheet CORPORATE FINANCE data A58 Selected U.S. liabilities to foreign official A36 New security issues—State and local institutions governments and corporations A37 Open-end investment companies—Net sales and asset position REPORTED BY BANKS IN THE UNITED STATES A37 Corporate profits and their distribution A38 Nonfinancial corporations—Assets and A58 Liabilities to and claims on foreigners liabilities A59 Liabilities to foreigners A38 Total nonfarm business expenditures on new A61 Banks' own claims on foreigners plant and equipment A62 Banks' own and domestic customers' claims on A39 Domestic finance companies—Assets and foreigners liabilities; business credit A62 Banks' own claims on unaffiliated foreigners A63 Claims on foreign countries—Combined domestic offices and foreign branches REAL ESTATE A40 Mortgage markets SECURITIES HOLDINGS AND TRANSACTIONS A41 Mortgage debt outstanding A64 Marketable U.S. Treasury bonds and notes— Foreign holdings and transactions CONSUMER INSTALLMENT CREDIT A64 Foreign official assets held at Federal Reserve Banks A42 Total outstanding and net change A65 Foreign transactions in securities A43 Extension and liquidations REPORTED BY NONBANKING BUSINESS FLOW OF FUNDS ENTERPRISES IN THE UNITED STATES A44 Funds raised in U.S. credit markets A66 Liabilities to unaffiliated foreigners A45 Direct and indirect sources of funds to credit A67 Claims on unaffiliated foreigners markets INTEREST AND EXCHANGE RATES Domestic Nonfinancial Statistics A68 Discount rates of foreign central banks A46 Nonfinancial business activity—Selected A68 Foreign short-term interest rates measures A68 Foreign exchange rates A46 Output, capacity, and capacity utilization A47 Labor force, employment, and unemployment A48 Industrial production—Indexes and gross value A69 Guide to Tabular Presentation, A50 Housing and construction Statistical Releases, and Special A51 Consumer and producer prices Tables A52 Gross national product and income A53 Personal income and saving Special Tables International Statistics A70 Survey of time and savings deposits at commercial banks, July 29, 1981 A54 U.S. international transactions—Summary A74 Commercial bank assets and liabilities, June 30, A55 U.S. foreign trade 1981 A55 U.S. reserve assets A80 Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1981 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1980 1981 1981 Item 03 Q4 Q1 Q2 Apr. May June July Aug. Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 Reserves of depository institutions 1 Total 7.0 16.7 2.1' 3.3 6.0 8.5 -5.8 7.9 8.3 2 Required 6.1 15.5r 4.0r 4.3 9.8 7.1 -8.1 7.9 9.8 3 Nonborrowed 12.9 7.2 1.1' -3.3 -4.5 -19.4 0.0 ' 19.8' 16.9 4 Monetary base2 9.4' 10.8r 4.9' 5.5' 1.3' 8.6r -0.3r 8.2r 5.0 Concepts of monev and liquid assets3 5 Ml-A 11.3 8.2 -20.8 -5.3 2.6 -5.6 -9.9 -2.0 3.0 6 Ml-B 13.9 10.8 4.9 8.7 22.3 -6.1 -7.5 3.6 7.5 7 M2 15.4 8.1 8.3 10.6 13.6 3.7 4.1 1.4' 11.7 8 M3 13.1 11.3 12.4 10.6 11.1 8.7 10.6 8.7 13.6 9 L 10.0 11.4 12.9 8.4' 6.1 10.9 10.9r n.a. n.a. Time and savings deposits Commercial banks 10 Total 6.1 15.4 17.0 10.0 6.8 19.2 17.2 16.8 21.1 11 Savings4 22.2 1.5 -30.5 -11.9 -2.8 -16.0 - 24.0 -11.5 -29.9 12 Small-denomination time5 2.1 16.2 30.2 13.4 5.4 15.8 22.0 14.5 31.3 13 Large-denomination time6 -1.2 25.4 37.5 20.0 13.7 44.3 35.8 34.8 36.9 14 Thrift institutions7 10.1 9.7 5.3 0.4 -2.5 2.7 0.3 -5.3r -2.2 15 Total loans and securities at commercial banks8 6.7 14.6 11.8 5.5 4.4 11.7 5.7 5.7 10.3 1980 1981 1981 Q4 Q1 Q2 03 May June July Aug. Sept. Interest rates (levels, percent per annum) Short-term rates 16 Federal funds9 15.85 16.57 17.78 17.58 18.52 19.10 19.04 17.82 15.87 17 Discount window borrowing10 11.78 13.00 13.62 14.00 13.87 14.00 14.00 14.00 14.00 18 Treasury bills (3-month market yield) 13.61 14.39 14.91 15.05 16.30 14.73 14.95 15.51 14.70 19 Commercial paper (3-month)11 15.26 15.34 16.15 16.78 17.56 16.32 17.00 17.23 16.09 Long-term rates Bonds 20 U.S. government13 12.23 12.74 13.49 14.51 13.82 13.20 13.92 14.52 15.07 21 State and local government14 9.59 9.97 10.69 12.11 10.78 10.67 11.14 12.26 12.92 22 Aaa utility (new issue)15 13.49 14.45 15.41 16.82 15.81 14.76 16.30 17.21 23 Conventional mortgages16 14.62 15.10 16.15 17.50 16.35 16.40 16.70 17.50 18.30 1. Unless otherwise noted, rates of change are calculated from average amounts 4. Savings deposits exclude negotiable order of withdrawal (NOW) and automatic outstanding in preceding month or quarter. Growth rates are adjusted for discon- transfer service (ATS) accounts at commercial banks. tinuities in series that result from changes in Regulation D. 5. Small-denomination time deposits are those issued in amounts of less than 2. Includes reserve balances at Federal Reserve Banks in the current week plus $100,000. vault cash held two weeks earlier used to satisfy reserve requirements at all deposi- 6. Large-denomination time deposits are those issued in amounts of $100,000 or tory institutions plus currency outside the U.S. Treasury. Federal Reserve Banks, more. the vaults of depository institutions, and surplus vault cash at depository institu- 7. Savings and loan associations, mutual savings banks, and credit unions. tions. 8. Changes calculated from figures shown in table 1.23. 3. Ml-A; Averages of daily figures for (1) demand deposits at all commercial 9. Averages of daily effective rates (average of the rates on a given date weighted banks other than those due to domestic banks, the U.S. government, and foreign by the volume of transactions at those rates). banks and official institutions less cash items in the process of collection and Federal 10. Rate for the Federal Reserve Bank of New York. Reserve float; (2) currency outside the Treasury, Federal Reserve Banks, and the 11. Quoted on a bank-discount basis. vaults of commercial banks; and (3) traveler's checks of nonbank issuers. 12. Unweighted average of offering rates quoted by at least five dealers. Ml-B: Ml-A plus negotiable order of withdrawal and automated transfer service 13. Market yields adjusted to a 20-year maturity by the U.S. Treasury. accounts at banks and thrift institutions, credit union share draft accounts, and 14. Bond Buyer series for 20 issues of mixed quality. demand deposits at mutual savings banks. 15. Weighted averages of new publicly offered bonils rated Aaa, Aa. and A by M2: Ml-B plus savings and small-denomination time deposits at all depository Moody's Investors Service and adjusted to an Aaa basis. Federal Reserve cominstitutions, overnight repurchase agreements at commercial banks, overnight Eu- pilations. rodollars held by U.S. residents other than banks at Caribbean branches of member 16. Average rates on new commitments for conventional first mortgages on new banks, and money market mutual fund shares. homes in primary markets, unweighted and rounded to nearest 5 basis points, from M3: M2 plus large-denomination time deposits at all depository institutions and Dept. of Housing and Urban Development. term RPs at commercial banks and savings and loan associations. NOTE. Reserve series have been revised to adjust for discontinuties associated L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents with the transitional phase-in of reserve requirements under the Monetary Control other than banks, bankers acceptances, commercial paper. Treasury bills and other Act of 1980. liquid Treasury securities, and U.S. savings bonds. M3 has been revised to incorporate additional data for term repurchase agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • October 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 July Aug. Sept. Aug. 19 Aug. 26 Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 147,405 146,892 145,511 148,189 147,299 146,589 144,556 145,435 146,358 145,069 2 U.S. government securities' 122.882 124,522 123,685 125,497 125,801 124,907 123,583 123,252 124,255 123,356 3 Bought outright 121,203 123,950 123,685 124,408 125,207 124,907 123,583 123,252 124,255 123,356 4 Held under repurchase agreements 1,679 572 0 1,089 594 0 0 0 0 0 5 Federal agency securities 9,067 8,785 8,671 8,881 8,780 8,694 8,694 8,661 8,661 8,661 6 Bought outright 8,694 8,694 8.671 8,694 8,694 8,694 8,694 8,661 8,661 8,661 7 Held under repurchase agreements 373 91 0 187 86 0 0 0 0 0 8 Acceptances 338 102 0 214 89 0 0 0 0 0 9 Loans 1,751 1.408 1,473 1,457 1,726 1,448 1,585 1,349 1,446 1,448 10 Float 3.176 2,796 3,206 2.723 2,148 2,751 2,468 3,821 3,485 2,758 11 Other Federal Reserve assets 10,191 9,279 8.476 9,416 8,754 8,789 8,226 8,354 8,511 8,846 12 Gold stock 11,154 11,154 11,154 11,154 11,154 11.154 11,154 11,154 11,154 11,152 13 Special drawing rights certificate account... 3.068 3,068 3.126 3,068 3.068 3.068 3,068 3,068 3,068 3,318 14 Treasury currency outstanding 13,613 13,627 13,625 13,609 13,609 13,701 13,620 13,627 13,627 13,630 ABSORBING RESERVE FUNDS 15 Currency in circulation 138,360 138,472 138,502 138,915 138.140 138,065 138,993 139,371 138,232 137,399 16 Treasury cash holdings 468 450 453 452 453 447 450 453 455 456 Deposits, other than reserves, with Federal Reserve Banks 17 Treasury 3.144 3,208 3,155 2,974 3,106 3,419 2,767 2,997 3,352 3,421 18 Foreign 309 280 284 276 277 295 346 270 240 291 19 Other 538 503 592 460 487 579 475 590 536 721 20 Required clearing balances n.a. 26 54 42 43 45 50 52 58 63 21 Other Federal Reserve liabilities and capital 5,249 4,778 4,849 4,924 4,843 4,791 4,820 4,815 4,824 4,974 22 Reserve accounts2 27.172 27,023 25,527 27,976 27,780 26,872 24,497 24,737 26,510 25,844 End-of-month figures Wednesday figures 1981 1981 July Aug. Sept Aug. 19 Aug. 26 Sept. 2 Sept. 9 Sept. 16 Sept. 23 SUPPLYING RESERVE FUNDS 23 Reserve bank credit outstanding 144,651 145,731 147,585 149,191 144,829 147,633 146,374 146,816 147,994 24 U.S. government securities' 123.172 124,522 124,330 126,082 122,829 124,917 124,572 123,105 124,740 25 Bought outright 121,554 124,5220 124,3300 125,155 122,8290 124,9170 124,5720 123,1050 124,7400 26 Held under repurchase agreements 1,618 927 27 Federal agency securities 9.054 8,694 8.661 8,986 8,694 8.694 8,694 8,661 8,661 28 Bought outright 8,694 8,6940 8,6610 8,694 8,6940 8,6940 8,6940 8,6610 8,6610 29 Held under repurchase agreements 360 0 0 292 0 0 0 0 0 30 Acceptances 453 154 31 Loans 1.027 1,254 2,486 1,914 1,482 2,285 1,716 1,616 2,509 32 Float 1.251 2.229 2,811 3,203 2,885 3,247 162 4,862 3,260 33 Other Federal Reserve assets 9.694 9,032 9,297 8,852 8,939 8,490 11,230 8,572 8,824 34 Gold stock 11,154 11,154 11,152 11.154 11,154 11,154 11,154 11,154 11,154 35 Special drawing rights certificate account... 3.068 3,068 3,318 3,068 3,068 3,068 3,068 3,068 3,068 36 Treasury currency outstanding 14,350 14,234 13.634 13,609 13,609 13,620 13,620 13,627 13,627 ABSORBING RESERVE FUNDS 37 Currency in circulation 138.287 138,534 137.828 138.968 138,246 138,620 139,843 139,241 138,074 38 Treasury cash holdings 448 450 456 453 445 451 450 455 Deposits, other than reserves, with Federal Reserve Banks 39 Treasury 2.922 2,595 3,520 3,104 3,139 3,778 3,471 3,925 3,649 40 Foreign 285 256 420 207 263 286 254 211 215 41 Other 472 502 843 434 503 541 492 696 443 42 Required clearing balances 45 63 42 43 45 50 52 58 43 Other Federal Reserve liabilities and capital 4,798 4,805 5,379 4,755 4,591 4,588 5.172 4,640 4,746 44 Reserve accounts2 26,011 27.000 27.180 29,059 25.427 27,172 24.483 25,450 28,203 1. Includes securities loaned—fully guaranteed by U.S. government securities 2. Excludes required clearing balances. pledged with Federal Reserve Banks—and excludes (if any) securities sold and scheduled to be bought back under matched sale-purchase transactions. NOTE. For amounts of currency and coin held as reserves, see table 1.12. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Depository Institutions A5 1.12 RESERVES AND BORROWINGS Depository Institutions Millions of dollars Monthly averages of daily figures RReesseerrvvee ccllaassssiiffiiccaattiioonn 1980 1981 Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. 1 Reserve balances with Reserve Banks1 26,664 27,114 26,591 26,722 27,173 26,822 26,819 27,172 27,023 25,527 2 Total vault cash (estimated) 18,149 19,293 17,824 17,327 17,189 17,773 18,198 18,273 18,438 1188,,992277 3 Vault cash at institutions with required reserve balances2 12,602 13,587 12,187 11,687 11,687 1122,,112244 12,396 1122,,550044 1122,,558855 1122,,996666 4 Vault cash equal to required reserves at other institutions 704 700 763 1,237 1,204 1,310 1,350 1,319 1,364 2,041 5 Surplus vault cash at other institutions3.. 4,843 5,006 4,874 4,403 4,298 4,339 4,452 4,450 4,489 3,920 6 Reserve balances + total vault cash4 44,940 46,520 44,524 44,155 4444,,445511 4444,,668833 45,100 45,507 45,513 4444,,449999 7 Reserve balances + total vault cash used to satisfy reserve requirements4'5 40,097 41,514 39,650 39,752 40,153 40,344 40,648 41,057 41,024 40,579 8 Required reserves (estimated) 40,067 41,025 39,448 39,372 40,071 40,213 40,098 40,675 40,753 40,179 9 Excess reserve balances at Reserve Banks4-6 . 30 489 202 380 82 131 550 382 271 400 10 Total borrowings at Reserve Banks 1,617 1,405 1,278 1,004 1,343 2,154 2,038 1,751 1,408 1,473 11 Seasonal borrowings at Reserve Banks 116 120 148 197 161 259 291 248 220 222 12 Extended credit at Reserve Banks n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 79 301 Weekly averages of daily figures for week ending: July 29 Aug. 5 Aug. 12 Aug. 19 Aug. 26 Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 13 Reserve balances with Reserve Banks1 26,997 26,544 25,713 27,976 27,780 26,872 24,497 24,737 26,510 25,844 14 Total vault cash (estimated) 18,878 18,688 19,048 17,911 17,995 18,689 19,160 19,390 17,608 19,618 15 Vault cash at institutions with required reserve balances2 12,940 12,848 13,054 12,180 12,164 1122,,770055 13,146 13,135 12,205 1133,,445533 16 Vault cash equal to required reserves at other institutions 1,351 1,323 1,383 1,306 1,448 1,459 2,068 2,156 1,909 2,196 17 Surplus vault cash at other institutions3 .. 4,587 4,517 4,611 4,425 4,383 4,525 3,946 4,099 3,494 3,969 18 Reserve balances + total vault cash4 45,931 4455,,228888 44,815 45,940 45,826 4455,,660099 43,705 4444,,117755 4444,,116633 4455,,550022 19 Reserve balances + total vault cash used to satisfy reserve requirements4-5 41,344 40,771 40,204 41,515 41,443 41,084 39,759 40,076 40,669 41,533 20 Required reserves (estimated) 40,895 40,392 39,882 41,298 41,281 40,831 39,307 39,823 40,391 41,009 21 Excess reserve balances at Reserve Banks4-6 . 449 379 322 217 162 253 452 253 278 524 22 Total borrowings at Reserve Banks 1,978 1,118 1,271 1,457 1,726 1,448 1,585 1,349 1,446 1,448 23 Seasonal borrowings at Reserve Banks 258 227 223 231 246 246 217 205 230 233 24 Extended credit at Reserve Banks n.a. n.a. n.a. n.a. 155 190 236 287 325 387 1. As of Aug. 13, 1981 excludes required clearing balances of all depository existing member bank, or when a nonmember bank joins the Federal Reserve institutions. System. For weeks for which figures are preliminary, figures by class of bank do 2. Prior to Nov. 13, 1980, the figures shown reflect only the vault cash held by not add to total because adjusted data by class are not available. member banks. 5. Reserve balances with Federal Reserve Banks which exclude required clearing 3. Total vault cash at institutions without required reserve balances less vault balances plus vault cash at institutions with required reserve balances plus vault cash equal to their required reserves. cash equal to required reserves at other institutions. 4. Adjusted to include waivers of penalties for reserve deficiencies in accordance 6. Reserve balances with Federal Reserve Banks which exclude required clearing with Board policy, effective Nov. 19, 1975, of permitting transitional relief on a balances plus vault cash used to satisfy reserve requirements less required reserves. graduated basis over a 24-month period when a nonmemBer bank merged into an (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 Nonfinancial Statistics • October 1981 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks' Averages of daily figures, in millions of dollars 1981. week ending Wednesday BByy mmaattuurriittyy aanndd ssoouurrccee Aug. 5 Aug. 12 Aug. 19 Aug. 26 Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 One dav and continuing contract 1 Commercial banks in United States 47.895 51.567 47.237 45.287 47.564 53.070 54,730 47.157 45,275 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 15.092 15.522 16.048 15.841 15.414 15.234 16.375 16.742 16.890 3 Nonbank securities dealers 2.767 2.629 3.081 3.143 2.879 2.325 3.050 3.441 3,125 4 All other 20.888 20.998 20.224 21.365 21.194 20,431 20.564 19.693 19,107 All other maturities 5 Commercial banks in United States 3,592 3.283 3.233 3.275 3.281 3.106 3.019 3.237 3,397 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 7,212 6,721 7.111 6.865 6.860 7.283 7.107 7.708 7,191 7 Nonbank securities dealers 4,887 4.479 4.573 4,328 4.485 4.470 3.987 4.216 4,676 8 All other 9.854 9.908 9.596 9.501 9.351 9.526 9.854 9.898 10.188 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 16.389 15.347 16.247 14.111 16.550 17.103 19.335 16,151 17.432 10 Nonbank securities dealers 2,534 2.819 2.679 2.408 2.623 2.883 3.001 2.740 2,919 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 A 7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Other extended credit2 SSShhhooorrrttt---ttteeerrrmmm aaadddjjjuuussstttmmmeeennnttt cccrrreeedddiiittt aaannnddd ssseeeaaasssooonnnaaalll cccrrreeedddiiittt111 First 60 days Next 90 days FFFFeeeeddddeeeerrrraaaallll RRRReeeesssseeeerrrrvvvveeee of borrowing of borrowing After 150 days BBBBaaaannnnkkkk EEEffffffeeeccctttiiivvveee dddaaattteee RRaattee oonn PPrreevviioouuss RRaattee oonn PPrreevviioouuss RRaattee oonn PPrreevviioouuss fffooorrr cccuuurrrrrreeennnttt rrraaattteeesss Rate on Effective Previous 99//3300//8811 rraattee 99//3300//8811 rraattee 99//3300//8811 rraattee 9/30/81 date rate Boston 14 5/5/81 13 14 15 15 15 16 15 9/4/81 New York 14 5/5/81 13 14 15 15 15 16 15 8/20/81 Philadelphia 14 5/5/81 13 14 15 15 15 16 15 8/20/81 Cleveland 14 5/5/81 13 14 15 15 15 16 15 8/25/81 Richmond 14 5/5/81 13 14 15 15 15 16 15 8/21/81 Atlanta 14 5/5/81 13 14 15 15 15 16 15 8/21/81 Ohio 14 5/8/81 13 14 15 15 15 16 15 8/27/81 St. Louis 14 5/5/81 13 14 15 15 15 16 15 8/25/81 Minneapolis 14 5/5/81 13 14 15 15 15 16 15 8/21/81 Kansas City 14 5/5/81 13 14 15 15 15 16 15 8/27/81 Dallas 14 5/5/81 13 14 15 15 15 16 15 8/20/81 San Francisco.... 14 5/5/81 13 14 15 15 15 16 15 8/21/81 Range of rates in recent years-1 Range(or F.R. Range (or F.R. Range (or F.R. Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba of n k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31. 1972. 41/5 4'/5 1976— Jan. 19. 51/52-K6 5 W 11997799—— SSeepptt.. 19 lO'A-ll 11 1973— Jan. 15 5 5 23. 51/2 21 11 11 Feb. 26 5-5'/> 51/5 Nov. 22. 51/54-'5A '/5 5'/4 Oct. 8 11-12 12 Mar. 2 51/5 51/2 26. 51/4 10 12 12 Apr. 23 51/2-53/4 5'/! May 4 53/4 5% 1977— Aug. 30. 5'/4-53/4 51/4 1980— Feb. 15 12-13 13 11 53/4-6 6 31. 51/4-53/4 5% 19 13 13 June 1 1 8 1 6- 6 6 !/> 66 1/2 S O e c p t. t . 26 2 . . 6 6 53 /4 MMaayy 3 2 0 9 1 1 2 2 - 13 1 1 2 3 1 5 61/5 6'/5 6-61/2 June 13 11-12 11 July 2 7 7 1978— Jan. 9. 6'/5 16 11 11 Aug. 14 7-71/5 71/2 20. 6!/5 61/5 July 28 10-ljl 10 2 3 7'/5 71/2 May 11. 61/57-7 7 29 10 10 1974— Apr. 25 71/5-8 8 July 1 3 2 . . 7-7'A 7 71 /4 S N e o p v t . . 2 1 6 7 1 1 1 2 1 1 1 2 30 8 8 July 10. 71/4 71/4 Dec. 5 12-13 13 Dec. 9 73/4-8 73/4 Aug. 21. 7% 73/4 8 13 13 1 6 73/4 73/4 Sept. 22. 8 8 Oct. 16. 8-8 ^ 81/5 1981— May 5 13-14 14 1975— Jan. 6 71/4 71/4 20. 81/! 81/5 MMaayy 8 14 14 10 71/4 71/4 Nov. 1. 91/5 2 4 71/4 71/4 3. 91/: 91/2 Feb. 5 63/4-71/4 63/4 7 6-V4 63/4 1979— July 20. 10 10 Mar. 10 61/4-6-3/4 61/4 Aug. 17. 10-101/5 101/2 14 6'/4 61/4 20. 101/5 lO'/i May 16 6-61/4 6 In effect Sept . 30. 1981 14 14 1. Effective Sept. 22. 1981, a 3 percent surcharge was applied to short-term In 1980 and 1981. the Federal Reserve applied a surcharge to short-term adadjustment credit borrowings by institutions with deposits of $500 million or more justment credit borrowings by institutions with deposits of $500 million or more who borrowed in successive weeks or in more than 4 weeks in a calendar quarter. that had borrowed in successive weeks or in more than 4 weeks in a calendar The rate for seasonal credit is unaffected by the surcharge. quarter. A 3 percent surcharge was in effect from Mar. 17. 1980, through May 7, 2. Applicable to advances when exceptional circumstances or practices involve 1980. On Nov. 17, 1980, a 2 percent surcharge was adopted; the surcharge was only a particular depository institution and to advances when an institution is under subsequently raised to 3 percent on Dec. 5, 1980 and to 4 percent on May 5. 1981. sustained liquidity pressures. See section 201.3(b)(2) of Regulation A. The surcharge was reduced to 3 percent effective Sept. 22, 1981. 3. Rates for short-term adjustment credit. For description and earlier data see the following publications of the Board of Governors: Banking and Monetary Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1971-1975. 1972- 1976. 1973-1977, and 1974-1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • October 1981 1.15 DEPOSITORY INSTITUTIONS RESERVE REQUIREMENTS1 Percent of deposits Member bank requirements Depository institution requirements before implementation of the after implementation of the TTyyppee ooff ddeeppoossiitt,, aanndd ddeeppoossiitt iinntteerrvvaall Monetary Control Act TTyyppee ooff ddeeppoossiitt,, aanndd Monetary Control Act5 iinn mmiilllliioonnss ooff ddoollllaarrss ddeeppoossiitt iinntteerrvvaall Percent Effective date Percent Effective date Net demand2 Net transaction accounts6 0-2 7 12/30/76 $0-$25 million 3 11/13/80 2-10 9 Vl 12/30/76 1122 1111//1133//8800 10-100 ll3/4 12/30/76 100-400 123/4 12/30/76 Nonpersonal time deposits1 Over 400 16V4 12/30/76 By original maturity Less than 4 years 3 11/13/80 TTiimmee aanndd ssaavviinnggss22,,33 44 yyeeaarrss oorr mmoorree 0 11/13/80 SSaavviinnggss 3 3/16/67 Eurocurrency liabilities Time4 AAllll ttyyppeess 3 11/13/80 0-5, by maturity 30-179 days 3 3/16/67 180 days to 4 years 2Yi 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 2Vz 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 nonto that part of the deposits of each bank. Demand deposits subject to reserve member institutions, and certain other obligations. In general, the base for the requirements 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 bylVl 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 implebalances 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 requireunrelated 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 or $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 A 9 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 Sept. 30, 1981 Previous maximum In effect Sept. 30, 1981 Previous maximum Effective Effective Percent Effective date date date 1 Savings 51/4 7/1/79 7/1/73 5Vz 7/1/79 51/4 2 Negotiable order of withdrawal accounts 2 51/4 12/31/80 1/1/74 51/4 12/31/80 5 Time accounts 3 Fixed ceiling rates by maturity 4 5V4 4 6 3 5 9 2 1 1 0 4 t t o o - d 8 a 9 2 2 y n s d y a e t y o y a s e r s a 1 ' r 1 s v e 7 a r 53/4 8 7 1 / / / 1 1 1 / / / 7 7 8 9 3 0 5 5 5 5 3 1 1 /4 / A 2 1 1 7 7 / / 2 2 / / 1 1 1 1 / / / / 7 7 7 7 3 0 0 3 6 6 ( 6 W ) 1 ( /1 ') / 80 (6) 6 5 5 3 3 / / 4 4 1 1 8 9 7 1 0 8 6 I 4 2 s '/ s y t t 5 o o u e e t a o 8 6 d r s y 4 y to e o e y a r a g e r r m s s o a r v 8 8 o s e r 7 e r n 8 m ental units (all maturities) 1(1 6 7 m 7 > 3 1 / / / 4 4 5 12 1 6 6 7 / 1 2 / / / / 1 1 1 3 1 / / / / / 7 7 7 7 7 8 8 4 3 3 V 5 7 3 ' 4 / / 4 4 12 1 1 / 1 / 2 2 / 3 1 1 / / / 7 7 7 4 3 0 67 7 3 3 1/ / 4 4 A 12 1 6 / 1 2 ( / / 1 3 1 ') / / / 7 7 7 8 4 3 (9) 6 12 Individual retirement accounts and Keogh (H.R. 10) 6/1/78 plans (3 years or more) 1011 6/1/78 73/4 7/6/77 6/1/78 13 6 Sp -m ec o ia n l th v a m ri o a n b e le y m ce a il r in k g e t r t a i t m es e b d y e po m s a it t s u r 1 i 2 t y C3) 14 2Vi years or more H cj 000 77''//55 11/1/73 ((66)) 7733//44 12/23/74 73/4 7/6/77 (13) M 1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loan rate is between 83/4 and 9 percent. Also effective March 15, 1979, interest comassociations. pounding was prohibited on six-month money market time deposits at all offering 2. For authorized states only, federally insured commercial banks, savings and institutions. The maximum allowable rates in July for commercial banks and thrift loan associations, cooperative banks, and mutual savings banks in Massachusetts institutions were as follows: Sept. 1. 15.896; Sept. 5, 16.045; Sept. 15,14.907; Sept. and New Hampshire were first permitted to offer negotiable order of withdrawal 22, 14.379. Effective for all six-month money market certificates issued beginning (NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was ex- June 5, 1980, the interest rate ceilings will be determined by the discount rate tended to similar institutions throughout New England on Feb. 27, 1976, and in (auction average) of most recently issued six-month U.S. Treasury bills as follows: New York State on Nov. 10, 1978, and in New Jersey on Dec. 28. 1979. Authorization 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 + 'A percent bill rate + °/4 percent 3. For exceptions with respect to certain foreign time deposits see the FEDERAL 8.50 to 8.75 bill rate + 'A percent 9.00 7.50 to 8.50 bill rate + 'A percent bill rate + VS percent r R u E a S r E y R 1 V 9 E 6 8 B U (p L . LE 1 T 67 IN ) . for October 1962 (p. 1279), August 1965 (p. 1084), and Feb- 7.25 to 7.50 7.75 bill rate + >/5 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 Aug. 1, 1981, commercial banks may pay interest on any variable decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice ceiling nonnegotiable time deposit with an original maturity of 2l/2 years to less period for time deposits was decreased from 30 days to 14 days for mutual savings than 4 years at a rate not to exceed '/4 of 1 percent below the average 2'/5-year banks. yield for U.S. Treasury securities as determined and announced by the U.S. Treas- 5. Effective Oct. 30, 1980, the minimum maturity or notice period for time ury Department immediately before the date of deposit. Mutual savings banks and deposits was decreased from 30 days to 14 days for commercial banks. savings and loan associations may pay interest on these certificates at a rate not 6. No separate account category. to exceed the averate 2V5 -year yield for U.S. Treasury securities as determined 7. No minimum denomination. Until July 1. 1979, a minimum of $1,000 was and announced by the Treasury Department immediately before the date of deposit. required for savings and loan associations, except in areas where mutual savings If the announced average 2'/5-year yield for U.S. Treasury securities is less than banks permitted lower minimum denominations. This restriction was removed for 9.50 percent, commercial banks may pay 9.25 percent and mutual savings banks deposits maturing in less than 1 year, effective Nov. 1, 1973. and savings and loan associations, 9.50 percent for these deposits. These deposits have no required minimum denomination, and interest may be compounded on 8. No minimum denomination. Until July 1, 1979, minimum denomination was them. The ceiling rates of interest at which they may be offered vary biweekly. $1,000 except for deposits representing funds contributed to an Individual Retire- The maximum allowable rates in August (in percent) for commercial banks were ment Account (IRA) or a Keogh (H.R. 10) plan established pursuant to the Internal as follows: Sept. 15. 16.30; Sept. 29. 15.95; and for thrift institutions: Sept. 15, Revenue Code. The $1,000 minimum requirement was removed for such accounts 16.55; Sept. 29. 16.20. in December 1975 and November 1976 respectively. 9. Between July 1, 1973, and Oct. 31, 19/3, there was no ceiling for certificates 15. Between Jan. 1, 1980, and Aug. 1, 1981, commercial banks, mutual savings maturing in 4 years or more with minimum denominations of $1,000; however, the banks, and savings and loan associations were authorized to offer variable ceiling amount of such certificates that an institution could issue was limited to 5 percent nonnegotiable time deposits with no required minimum denomination and with o c f e rt it i s f ic to a t t a e l s t o i f m e l es a s n d t h s a a n v i $ n 1 g , s 0 0 d 0 e , p o w s e it r s e . l S im al i e t s e d i n to e x t c h e e s s 6 V of 5 t p h e a r t ce a n m t o c u e n il t, i ng as o w n el t l im as e c m o a m tu m ri e t r i c e i s a l o f b a 2 n '/ k 5 s y w ea as rs 3/ o 4 r p m er o c r e e n . ta E g f e f e p c o ti i v n e t J b a e n l . o w 1 . th 1 e 9 8 a 0 v , e t r h a e g e m y a i x el i d m u o m n 2 r ' a /5 te - y f e o a r r deposits maturing in 2lA years or more. U.S. Treasury securities; the ceiling rate for thrift institutions was 'A percentage yea E r f s f e o c r t i m ve o r N e o w v. i th 1 , m 1 i 9 n 7 i 3 m , u c m e il d in e g n s o m w i e n r a e ti r o e n i m o p f o $ s 1 ed ,0 0 o 0 n . T ce h r e ti r f e i c i a s t e n s o m li a m tu it r a i t n i g o n in o n 4 c p e o i i l n in t g h i o g f h e l r l 3/ t 4 h a p n e r th ce at n t f o w r a c s o m pl m ac e e r d c ia o l n b t a h n e k s s e . E ac f c fe o c u t n iv ts e M at a c r. o m 1, m 1 e 9 r 8 c 0 ia , l a b t a e n m k p s; o r t a h r e y the amount of these certificates that banks can issue. temporary ceiling for savings and loan associations and commercial banks, savings 10. Accounts subject to fixed-rate ceilings. See footnote 8 for minimum denom- and loan associations, and mutual savings banks was increased Vi percentage point. ination requirements. The temporary ceiling was retained, and a minimum ceiling of 9.25 percent for 11. Effective January 1, 1980, commercial banks are permitted to pay the same commercial banks and 9.50 percent for savings and loan associations and mutual rate as thrifts on IRA and Keogh accounts and accounts of governmental units savings banks was established. when such deposits are placed in the new 2'/5-year or more variable-ceiling certif- NOTE. Before Mar. 31, 1980, the maximum rates that could be paid by federally icates or in 26-week money market certificates regardless of the level of the Treasury insured commercial banks, mutual savings banks, and savings and loan associations bill rate. were established by the Board of Governors of the Federal Reserve System, the 12. Must have a maturity of exactly 26 weeks and a minimum denomination of Board of Directors of the Federal Deposit Insurance Corporation, and the Federal $10,000, and must be nonnegotiable. Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526 respectively. Title II of the Depository Institutions Deregulation and Monetary Con- 13. Commercial banks, savings and loan associations, and mutual savings banks trol Act of 1980 (P.L. 96-221) transferred the authority of the agencies to establish were authorized to offer money market time deposits effective June 1, 1978. The maximum rates of interest payable on deposits to the Depository Institutions Deceiling rate for commercial banks on money market time deposits entered into regulation Committee. The maximum rates on time deposits in denominations of before June 5,1980, is the discount rate (auction average) on most recently issued $100,000 or more with maturities of 30-89 days were suspended in June 1970; such six-month U.S. Treasury bills. Until Mar. 15, 1979, the ceiling rate for savings and deposits maturing in 90 days or more were suspended in May 1973. For information loan associations and mutual savings banks was V4 percentage point higher than regarding previous interest rate ceilings on all types of accounts, see earlier issues the rate for commercial banks. Beginning Mar. 15, 1979, the '/4-percentage-point of the FEDERAL RESERVE BULLETIN, the Federal Home Loan Bank Board Journal, o in r t m er o es r t e . d T if h f e e r f e u n ll t i d al i f i f s e r r e e n m ti o a v l e i d s i w n h e e f n f e t c h t e w s h i e x n - m th o e n t s h i x T -m re o a n s t u h r y b il b l il r l a t r e a t i e s 8 is 3 / 9 4 p p e e r r c c e e n n t t and the Annual Report of the Federal Deposit Insurance Corporation. or less. Thrift institutions may pay a maximum 9 percent when the six-month bill Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics • October 1981 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1981 TTyyppee ooff ttrraannssaaccttiioonn 11997788 11997799 11998800 Feb. Mar. Apr. May June July Aug. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched salepurchase transactions) Treasury bills 1 Gross purchases 16,628 15,998 7,668 0 1,607 1,141 790 295 1,325 1,713 2 Gross sales 13,725 6,855 7,331 357 0 0 0 90 0 333 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 2,033 2,900 3,389 0 0 0 0 0 100 0 Others within 1 year1 5 Gross purchases 1,184 3,203 912 0 0 115 0 0 122 0 6 Gross sales 0 0 0 23 0 0 0 0 0 0 7 Maturity shift -5,170 17,339 12,427 990 878 522' 2,900 833 1,073 2,807 8 Exchange -11,308 -18,251 -1,936 -1,385 -261 -1,281 -823 -351 -2,430 9 Redemptions 2,600 0 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 4,188 2,148 2,138 0 0 469 0 0 607 0 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -12,693 -8,909 -990 -878 -522 -1,724 -833 -1,073 -820 13 Exchange 7,508 13,412 1,211 1,385 261 681 823 351 1,724 5 to 10 years 14 Gross purchases 1,526 523 703 0 0 164 0 0 64 0 15 Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shift -4,646 -3,092 0 0 0 -1,176 0 0 -1,987 17 Exchange 2,181 2,970 400 0 0 300 0 0 400 Over 10 years 18 Gross purchases 1,063 454 811 0 0 89 0 0 182 0 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift 0 -426 0 0 0 0 0 0 0 21 Exchange 1,619 1,869 325 0 0 300 0 0 305 All maturities1 22 Gross purchases 24,591 22,325 12,232 0 1,607 1,977 790 295 2,301 1,713 23 Gross sales 13,725 6,855 7,331 380 0 0 0 90 0 333 24 Redemptions 2,033 5,500 3,389 0 0 0 0 0 100 0 Matched transactions 25 Gross sales 511,126 627,350 674,000 30,819 32,003 37,251 45,658 51,106 69,972 54,329 26 Gross purchases 510,854 624,192 675,496 31,651 30,441 37,295 43,492 52,607 69,309 55,917 Repurchase agreements 27 Gross purchases 151,618 107,051 113,902 0 1,623 9,458 1,219 3,509 23,217 7,199 28 Gross sales 152,436 106,968 113,040 0 1,246 9,835 1,219 3,509 21,599 8,817 29 Net change in U.S. government securities 7,743 6,896 3,869 452 422 1,644 -1,376 1,706 3,155 1,350 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 301 853 668 0 0 0 0 0 0 0 31 Gross sales 173 399 0 0 0 0 0 0 0 0 32 Redemptions 235 134 145 3 15 2 * 26 * * Repurchase agreements 33 Gross purchases 40,567 37,321 28,895 0 494 1,211 186 691 5,182 864 34 Gross sales 40,885 36,960 28,863 0 437 1,268 186 691 4,822 1,225 35 Net change in federal agency obligations -426 681 555 -3 42 -58 0 -26 360 -360 BANKERS ACCEPTANCES 36 Outright transactions, net 0 0 0 0 0 0 0 0 0 0 37 Repurchase agreements, net -366 116 73 0 298 -298 0 0 453 -453 38 Net change in bankers acceptances -366 116 73 0 298 -298 0 0 453 -453 39 Total net change in System Open Market Account 6,951 7,693 4,497 450 762 1,287 -1,376 1,680 3,968 536 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 All 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 1981 1981 Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 July Aug. Sept. Consolidated condition statement ASSETS 1 Gold certificate account 11,154 11.154 11,154 11,154 11,152 11.154 11.154 11,152 2 Special drawing rights certificate account 3,068 3.068 3,068 3,068 3,318 3.068 3,068 3,318 3 Coin 381 373 378 390 400 380 384 400 Loans 4 To depository institutions 2,285 1,716 1.616 2,509 2.486 1,027 1,254 2,486 5 Other 0 0 0 0 0 0 0 0 Acceptances 6 Held under repurchase agreements 0 0 0 0 0 453 0 0 Federal agency obligations 7 Bought outright 8.694 8.694 8.661 8,661 8.661 8,694 8,694 8,661 8 Held under repurchase agreements 0 0 0 0 0 360 0 0 U.S. government securities Bought outright 9 Bills 47.517 47.172 45.705 47,340 46.930 44.154 47,122 46,930 10 Notes 59.429 59,429 59.429 59,429 59.429 59.609 59,429 59,429 11 Bonds 17.971 17.971 17,971 17,971 17.971 17.791 17.971 17,971 12 Total1 124.917 124.572 123.105 124,740 124.330 121,554 124.522 124.330 13 Held under repurchase agreements 0 0 0 0 0 1.618 0 0 14 Total U.S. government securities 124,917 124,572 123,105 124.740 124.330 123,172 124,522 124.330 15 Total loans and securities 135,896 134,982 133,382 135,910 135,477 133,706 134,470 135,477 16 Cash items in process of collection 9,291 7.787 11.915 9,891 9.824 7.085 7,606 9,824 17 Bank premises 484 485 485 487 487 479 484 487 Other assets 18 Denominated in foreign currencies2 5.093 5.117 5.136 5,150 5,567 5.739 5,713 5,567 19 All other3 2.913 5.628 2.951 3.187 3,243 3,476 2,835 3,243 20 Total assets 168,280 168,594 168,469 169,237 169,468 165,087 165,714 169,468 LIABILITIES 21 Federal Reserve notes 125.826 127,047 126,442 125.292 125.050 124.765 125.134 125,050 Deposits 22 Depository institutions 27,217 24,533 25.502 28.261 27,243 26.011 27.045 27.243 23 U.S. Treasury—General account 3,778 3.471 3,925 3.649 3,520 2,922 2,595 3,520 24 Foreign—Official accounts 286 254 211 215 420 285 256 420 25 Other 541 492 696 443 843 472 502 843 26 Total deposits 31,822 28,750 30,334 32,568 32,026 29,690 30,398 32,026 27 Deferred availability cash items 6.044 7.625 7.053 6.631 7,013 5,834 5.377 7.013 28 Other liabilities and accrued dividends4 1.799 2,333 1.852 1.932 2,440 1.992 1.801 2,440 29 Total liabilities 165,491 165,755 165,681 166,423 166,529 162,281 162,710 166,529 CAPITAL ACCOUNTS 30 Capital paid in 1.256 1,256 1.258 1,257 1,257 1.250 1,256 1,257 31 Surplus 1,203 1,203 1.203 1,203 1,203 1.203 1,203 1,203 32 Other capital accounts 330 380 327 354 479 353 545 479 33 Total liabilities and capital accounts 168,280 168,594 168,469 169,237 169,468 165,087 165,714 169,468 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 91.837 92,569 92.850 91,674 91.462 95.133 92,025 91,462 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to bank) 149,196 149,247 149,275 149,600 149.794 147,142 149,051 149,794 36 Less-held by bank5 23,370 22,200 22,833 24,308 24,744 22.377 23,917 24,744 37 Federal Reserve notes, net 125,826 127,047 126.442 125,292 125,050 124.765 125,134 125,050 Collateral for Federal Reserve notes 38 Gold certificate account 11,154 11,154 11.154 11,154 11.152 11.154 11,154 11,152 39 Special drawing rights certificate account 3,068 3.068 3,068 3,068 3,318 3,068 3.068 3.318 40 Other eligible assets 0 0 0 0 0 0 0 0 41 U.S. government and agency securities 111,604 112.825 112,220 111.070 110.580 110,543 110,912 110,580 42 Total collateral 125,826 127,047 126,442 125,292 125,050 124,765 125,134 125,050 1. Includes securities loaned—fully guaranteed by U.S. government securities 3. Includes special investment account at Chicago of Treasury bills maturing pledged with Federal Reserve Banks—and excludes (if any) securities sold and within 90 days. scheduled to be bought back under matched sale-purchase transactions. 4. Includes exchange-translation account reflecting the monthly revaluation at 2. Includes U.S. government securities held under repurchase agreement against market exchange rates of foreign-exchange commitments. receipt of foreign currencies and foreign currencies warehoused for the U.S. Treas- 5. Beginning September 1980, Federal Reserve notes held by the Reserve Bank ury. Assets shown in this line are revalued monthly at market exchange rates. are exempt from the collateral requirement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • October 1981 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month TTTyyypppeee aaannnddd mmmaaatttuuurrriiitttyyy gggrrrooouuupppiiinnngggsss 1981 1981 Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 July 31 Aug. 31 Sept. 30 1 Loans—Total 2.285 1.716 1.616 2.509 2.486 1.027 1.254 2.486 2 Within 15 days 2.154 1.138 1.588 2.454 2.440 926 1.169 2.440 3 16 days to 90 days 131 578 28 55 46 101 85 46 4 91 days to 1 year 0 0 0 (1 0 (1 0 0 5 Acceptances—Total 0 (1 (1 0 0 453 0 0 6 Within 15 days 0 0 0 0 0 453 0 0 / 16 days to 90 days 0 0 0 0 0 0 0 0 X 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. government securities—Total 124.917 124.572 123.105 124.74(1 124.330 123.172 124.522 124.330 10 Within 15 days' 6.35(1 6.619 4.189 5.136 4.218 4.253 3.589 4.218 11 16 days to 90 days 22.825 23.853 23.823 24.562 24.805 21.945 24.422 24.805 12 91 days to 1 year 33.302 31.66(1 32.653 32.602 32.896 34.157 34.071 32,896 13 Over 1 year to 5 vears 34.718 34.718 34.718 34.718 34.689 33.813 34.718 34.689 14 Over 5 years to 10 years 11.519 11.519 11.519 11.519 11.519 13.106 11.519 11.519 15 Over 10 years 16.203 16.203 16.203 16.203 16.203 15.898 16.203 16.203 16 Federal agency obligations—Total 8.694 8.694 8.661 8.661 8.661 9.054 8.694 8.661 17 Within 15 days' 133 133 125 125 200 425 195 200 18 16 days to 90 days 629 629 597 597 522 647 553 522 19 91 days to 1 year 1.690 1.690 1.631 1.631 1.631 1.717 1.692 1,631 20 Over 1 year to 5 vears 4.626 4.626 4.730 4.730 4.730 4.649 4.638 4,730 21 Over 5 years to 10 years 1.015 1.015 977 977 977 1.015 1.015 977 22 Over 10 years 601 601 601 601 601 601 601 601 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 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 11997788 11997799 11998800 Apr. May June July Aug. Debits to demand deposits' (seasonally adjusted) 11111111 AAAAAAAAllllllllllllllll ccccccccoooooooommmmmmmmmmmmmmmmeeeeeeeerrrrrrrrcccccccciiiiiiiiaaaaaaaallllllll bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 40.297.8 49.775.0 63.013.4 73.621.7 74.800.5 78.745.3 83.356.8' 89.723.4 22222222 MMMMMMMMaaaaaaaajjjjjjjjoooooooorrrrrrrr NNNNNNNNeeeeeeeewwwwwwww YYYYYYYYoooooooorrrrrrrrkkkkkkkk CCCCCCCCiiiiiiiittttttttyyyyyyyy bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 15.008.7 18.512.7 25.192.5 29.501.3 29.610.9 32.262.4 37.282.6 41.877.2 33333333 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 25.289.1 31,262.3 37.820.9 44.120.4 45.189.6 46.482.8 46.074.2 47.846.3 Debits to savings deposits- (not seasonally adjusted) 44444444 AAAAAAAATTTTTTTTSSSSSSSS////////NNNNNNNNOOOOOOOOWWWWWWWW33333333 17.1 83.3 158.4 815.4 693.3 808.8 798.2 745.0 55555555 BBBBBBBBuuuuuuuussssssssiiiiiiiinnnnnnnneeeeeeeessssssssssssssss44444444 56.7 77.3 93.4 112.4 112.0 113.8 120.6 118.1 66666666 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrrssssssss55555555 359.7 515.2 605.3 590.1 518.3 586.4 605.5 595.5 77777777 AAAAAAAAllllllllllllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss 432.9 675.8 857.2 1.517.9 1.323.6 1.509.0 1.524.3 1.458.6 Demand deposit turnover' (seasonally adjusted) 88888888 AAAAAAAAllllllllllllllll ccccccccoooooooommmmmmmmmmmmmmmmeeeeeeeerrrrrrrrcccccccciiiiiiiiaaaaaaaallllllll bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 139.4 163.5 201.6 257.2 260.9 281.3 296.1 316.8 99999999 MMMMMMMMaaaaaaaajjjjjjjjoooooooorrrrrrrr NNNNNNNNeeeeeeeewwwwwwww YYYYYYYYoooooooorrrrrrrrkkkkkkkk CCCCCCCCiiiiiiiittttttttyyyyyyyy bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 541.9 646.2 813.7 1.001.9 975.1 1.085.4 1.288.6 1.338.1 1111111100000000 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 96.8 113.3 134.3 171.8 176.3 185.8 182.4 189.9 Savings deposit turnover2 (not seasonally adjusted) 1111111111111111 AAAAAAAATTTTTTTTSSSSSSSS////////NNNNNNNNOOOOOOOOWWWWWWWW33333333 7.0 7.8 9.7 15.2 13.5 15.2 14.7 13.5 1111111122222222 BBBBBBBBuuuuuuuussssssssiiiiiiiinnnnnnnneeeeeeeessssssssssssssss44444444 5.1 7.2 9.3 11.6 11.7 12.3 13.2 13.5 1111111133333333 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrrssssssss55555555 1.7 2.7 3.4 3.6 3.3 3.7 3.9 3.9 1111111144444444 AAAAAAAAllllllllllllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss 1.9 3.1 4.2 6.7 6.0 6.9 6.9 6.7 1. Represents accounts of individuals, partnerships, and corporations, and of NOTE. Historical data for the period 197(1 through June 1977 have been estimated: states and political subdivisions. these estimates are based in part on the debits series for 233 SMSAs. 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 11997777 11997788 11997799 11998800 Item DDeecc.. DDeecc.. DDeecc.. DDeecc.. Apr. May June July' Aug. Seasonally adjusted MEASURES' 1 Ml-A 331.4 354.8 372.7 387.7 366.6 364.9 361.9 361.3 362.2 ? Ml-B 336.4 364.2 390.5 415.6 433.7 431.5 428.8 430.1 432.8 3 M2 1.296.4 1.404.2 1.525.2 1,669.4 1.738.1 1.743.4 1,749.3 1.760.1 1.777.2 4 M3 1.462.5 1.625.9' 1.775.6R 1.965.1' 2.046.0' 2.060.8R 2.079.0R 2.094.0 2.117.7 5 I.- 1.722.7 1,936.8' 2.151.7' 2.378.4' 2.457.7'' 2,480.1R 2,502.7 n.a. n.a. COMPONENTS 6 Currency 88.6 97.4 106.1 116.1 118.9 119.8 119.9 120.8 121.2 7 Demand deposits 239.7 253.9 262.8 267.4 243.1 240.7 237.9 236.4 236.7 8 Travelers checks3 3.1 3.5 3.8 4.2 4.6 4.4 4.2 4.1 4.3 9 Savings deposits 486.5 475.5 416.5 393.0 367.0 361.1 354.0 349.1 341.1 10 Small-denomination time deposits4 453.8 533.3 652.7 756.8 790.0 798.4 807.7 811.3 821.6 11 Large-denomination time deposits5 145.1 194.0 219.7 256.8 269.5 277.2 287.3 290.3 296.7 Not seasonally adjusted MEASURES' 1? Ml-A 340.1 364.2 382.5 397.7 369.5 359.4 361.1 363.5 360.8 13 Ml-B 345.1 373.6 400.6 425.9 436.7 424.4 428.4 432.9 431.3 14 M2 1.299.0 1.409.0 1.531.3 1.675.2 1,745.7 1,737.5 1.751.5 1.765.0 1.773.5 15 M3 1,467.7 1.634.8' 1.786.0' 1.975.6'" 2.052.5' 2.054.0' 2.075.6' 2.094.6 2,111.0 16 I.2 1.726.7 1,943.9' 2.159.4' 2.385.0' 2.467.4'' 2.478.0r 2.501.4 n.a. n.a. COMPONENTS 17 Currency 90.3 99.4 108.3 118.4 118.4 119.3 119.9 121.4 121.5 18 Demand deposits 247.0 261.5 270.8 275.4 246.8 235.9 237.0 237.4 234.5 19 Travelers checks3 2.9 3.3 3.5 3.9 4.3 4.2 4.3 4.7 4.7 20 Other checkable deposits6 5.0 9.4 18.2 28.3 67.5 65.3 67.6 69.7 70.8 21 Overnight RPs and Eurodollars7 18.6 23.9 25.4 32.4 34.3 38.3 39.7 39.2 40.2 22 Money market mutual funds 3.8 10.3 43.6 75.8 117.1 118.1 122.8 134.3 145.4 23 Savings deposits 483.1 472.6 413.9 390.2 366.4 359.7 355.4 352.9 344.1 24 Small-denomination time deposits4 451.3 531.7 651.4 755.2 795.2 801.0 808.9 809.6 816.5 25 Large-denomination time deposits'1 147.7 198.1 223.9 261.4 268.3 276.3 281.6 286.0 293.7 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 instituvaults 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, and 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 Cainstitutions, 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 M3 and L have been revised to incorporate additional data for term repurchase other than banks, bankers acceptances, commercial paper. Treasury bills and other agreements. 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 Nonfinancial Statistics • October 1981 1.22 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MEMBER BANK DEPOSITS' Billions of dollars, averages of daily figures 1980 1981 1978 1979 IItteemm Dec. Dec. Nov.:-r Dec. Jan. Feb. Mar. Apr. May June July' Aug. Seasonally adjusted 1 Total reserves3 41.16 43.46 41.25 40.13 40.06' 39.88r 40.19r 40.32r 40.76r 40.75' 41.00 41.48 2 Nonborrowed reserves 40.29 41.98 39.19 38.44 38.67r 38.58' 39.19' 38.99' 38.54r 38.72 39.32 40.06 3 Required reserves 40.93 43.13 40.73 39.66' 39.75' 39.61' 39.94' 40.20r 40.59' 40.50 40.75 41.28 4 Monetary base4 142.0' 153.6r 160.6 159.5' 160.1 160.4' 161.2' 162.2 163.5' 163.7' 164.8 165.7 5 Member bank deposits subject to reserve requirements5 616.1 644.5 694.3 701.8 703.8 704.3 703.4 711.3r 715.1r 720.8r 728.2 740.2 6 Time and savings 428.7 451.2 494.1 504.0r 517.5 523.4 524.7 531.1 538.1 545.6 553.8 565.3 Demand 7 Private 185.1 191.5 197.9 195.9 184.1 178.8 176.7 177.4 174.7 173.3 172.2 172.6 8 U.S. government 2.2 1.8 2.2 1.9 2.3 2.1 2.0 2.8 2.3' 1.9 2.2 2.3 Not seasonally adjusted 9 Monetary base4 144.6 156.2 161.6 162.4' 161.(1 158.8' 159.5r 161.6' 162.6' 163.3 165.4 165.4 10 Member bank deposits subject to reserve requirements5 624.0 652.7 694.5 710.3 712.6 701.5 702.9 713.5 710.0 719.7 727.7 734.7 11 Time and savings 429.6 452.1 493.2 505.0 520.6 524.9 527.8 531.6 538.1 545.0 552.7 562.5 Demand 12 Private 191.9 198.6 199.5 203.2r 189.9 174.5 173.0 178.9 169.8 172.2 173.0 170.3 13 U.S. government 2.5 2.0 1.9 2.1 2.1 2.1' 2.1 3.0 2.1 2.5 2.0 1.9 1. Reserves of depository institutions series reflect actual reserve requirement 2. Reserve measures for November reflect increases in required reserves assopercentages 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 Banks1 Billions of dollars; averages of Wednesday figures „ 1978 1979 1980 1981 1978 1979 1980 1981 Dec. Dec. Dec. Dec. Dec. Dec. July Aug. July Aug. Seasonally adjusted Not seasonally adjusted 1 Total loans and securities2 1,013.43 1,134.64 1,237.2s 1,291.6 1,302.8 1,022.53 U45.04 1,248.8s 1,293.1 1,302.2 2 U.S. Treasury securities 93.3 93.8 110.7 120.4 119.4 94.5 95.0 112.1 118.2 117.0 3 Other securities 173.23 191.8 213.9 219.5 221.9 173.93 192.6 214.8 219.3 221.5 4 Total loans and leases2 746.93 848.94 912.75 951. T 961.5 754.23 857.44 922.05 955.6' 963.8 5 Commercial and industrial loans 246.I6 291.I4 324.95 344.07r 349.7 247.76 293.04 327.0s 345.11' 349.4 6 Real estate loans 210.5 241.34 260.65 273.0 275.2 210.9 241.84 261.1s 273.3 276.0 7 Loans to individuals 164.7 184.9 175.2 174.0 173.8 165.6 186.0 176.2 174.3r 175.4 8 Security loans 19.3 18.6 17.6 19.5 17.7 20.6 19.8 18.8 18.7 17.8 9 Loans to nonbank financial institutions .. 27.18 28.84 28.7s 29.0 29.7 27.68 29.34 29.2s 29.4 30.0 10 Agricultural loans 28.2 31.1 31.6 33.1 33.0 28.1 30.9 31.4 33.5 33.7 11 Lease financing receivables 7.5 9.3 10.9 12.3 12.4 7.5 9.3 10.9 12.3 12.^ 12 All other loans 43.63 44.0 63.3 66.7r 69.9 46.23 47.3 67.3 68.2r 69.0 MEMO: 13 Total loans and securities plus loans sold2'9 . 11,,001177..1133 11,,113377..6644 1100 11,,223399..99ss l,294.3r 1,305.4 1,026.23 M48.04 10 1,251.5s 1,295.8 1,304.9 14 Total loans plus loans sold2,9 750.63 851.94 10 915.4s 954.3 964.1 757.93 860.4410 924.7s 958.2 966.4 15 Total loans sold to affiliates9 3.7 3.08-10 2.7 2.7 2.6 3.7 3.08-10 2.7 2.7 2.6 16 Commercial and industrial loans plus loans sold9 224488..0066--1111 229933JJ44..1100 326.65 346.07r 351.7 249.66-11 295.04-10 328.8s 347.77r 351.4 17 Commercial and industrial loans sold9 ... 1.9" 2.0'° 1.8 2.0 2.0 1.911 2.010 1.8 2.0 2.0 18 Acceptances held 6.6 8.2 8.2 10.2 9.3 7.3 9.1 8.8 9.9r 8.9 19 Other commercial and industrial loans... 239.5 282.9 316.7 333.8r 340.3 240.4 283.9 318.2 335.8r 340.5 20 To U.S. addressees12 226.0 264.1 295.2 308.7 314.6 225.9 264.1 295.2 310.9 315.2 21 To non-U.S, addressees 13.5 18.8 21.5 25. lr 25.7 14.5 19.8 23.0 25.0r 25.3 22 Loans to foreign banks 21.5 18.5 23.1 21.4 22.4 23.2 20.0 24.8 22.3 22.2 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. banks 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 by one bank reduced commercial and in- investment companies, and Edge Act corporations engaged in banking. dustrial loans by $0.1 billion as of Apr. 1, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 DomesticN onfinancial Statistics • October 1981 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars December outstanding Outstanding in 1980 and 1981 SSoouurrccee 1977 1978 1979 Dec. Jan. Feb.' Mar.' Apr.' May' June' July' Aug. Total nondeposit funds 1 Seasonally adjusted2 61.5 91.2 121.1 121.2' 124.7' 122.2 117.2 111.6 118.0 120.3 119.4 120.6 2 Not seasonally adjusted 60.1 90.2 119.8 120.6r 122.1r 121.5 116.9 111.1 122.5 121.0 120.1 123.6 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 58.4 80.7 90.0 110.3r 113.7' 111.2 110.9 109.8 107.1 112.4 111.8 108.9 4 Not seasonally adjusted 57.0 79.7 88.7 109.7' 111.1' 110.4 110.7 109.4 111.5 113.2 112.5 111.9 5 Net balances due to foreign-related institutions, not seasonally adjusted -1.5 6.8 28.1 8.2 8.2 8.2 3.5 -.9 8.2 5.0 4.9 9.1 6 Loans sold to affiliates, not seasonally adjusted4-5 4.7 3.7 3.0 2.7 2.8 2.8 2.8 2.7 2.8 2.8 2.7 2.6 MEMO 7 Domestically chartered banks net positions with own foreign branches, not seasonally adjusted6 -12.5 -10.2 6.5 -14.7 -16.2 -14.7 -17.0 -21.3 -13.6 -14.7 -14.7 -10.2 8 Gross due from balances 21.1 24.9 22.8 37.5 37.5 36.3 38.8 43.0 43.5 42.5 45.1 43.7 9 Gross due to balances 8.6 14.7 29.3 22.8 21.2 21.6 21.8 21.7 29.8 27.8 30.4 33.5 10 Foreign-related institutions net positions with directly related institutions, not seasonally adjusted7 10.9 17.0 21.6 22.9 24.4 22.9 20.5 20.4 21.8 19.6 19.5 19.3 11 Gross due from balances 10.7 14.3 28.9 32.5 31.5 31.8 31.9 33.8 34.9 35.5 33.7 34.0 12 Gross due to balances 21.7 31.3 50.5 55.4 55.9 54.7 52.3 54.1 56.7 55.2 53.2 53.3 Security RP borrowings 13 Seasonally adjusted" 36. r 45.0' 49.7r 65.0' 69.7' 68.1 68.2 68.3 65.7 72.4 71.4 68.8 14 Not seasonally adjusted 35.1r 43.8' 48.4' 63.3' 66.0' 66.2 66.8 66.8 69.0 72.0 71.0 70.7 U.S. Treasury demand balances9 15 Seasonally adjusted 4.4 8.7 8.9 8.4 7.0' 8.3 11.9 12.4 14.3 10.9 11.8 9.2 16 Not seasonally adjusted 5.1 10.3 9.7 9.0 8.0 8.2 10.4 12.2 12.5 12.4 10.7 7.5 Time deposits, $100,000 or more10 17 Seasonally adjusted 162.0 213.0 227.1 265.8 277.0 282.5 281.1 284.3 294.8 303.6 312.4 322.0 18 Not seasonally adjusted 165.4 217.9 232.8 272.4 282.0 287.0 285.9 283.7 293.6 298.4 304.6 314.6 1. Commercial banks are those in the 50 states and the District of Columbia 5. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million due to with national or state charters plus agencies and branches of foreign banks. New corrections of two New York City banks. York investment companies majority owned by foreign banks, and Edge Act cor- 6. Averages of daily figures for member and nonmember banks. Before October porations owned by domestically chartered and foreign banks. 1980 nonmember banks were interpolated from quarterly call report data. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 7. Includes averages of current and previous month-end data until August 1979; nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. In- beginning September 1979 averages of daily data. cludes averages of Wednesday data for domestically chartered banks and averages 8. Based on daily average data reported by 122 large banks beginning February of current and previous month-end data for foreign-related institutions. 1980 and 46 banks before February 1980. 3. Other borrowings are borrowings on any instrument, such as a promissory 9. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at note or due bill, given for the purpose of borrowing money for the banking business. commercial banks. Averages of daily data. This includes borrowings from Federal Reserve Banks and from foreign banks, 10. Averages of Wednesday figures. term federal funds, overdrawn due from bank balances, loan RPs, and participations in pooled loans. Includes averages of daily figures for member banks and NOTE. Movement of federal funds. RPs, and other borrowings from nonbanks averages of current and previous month-end data for foreign-related institutions. (lines 3 and 4) is based on fluctuations in security RP borrowings (lines 13 and 14) 4. Loans initially booked by the bank and later sold to affiliates that are still and borrowings from unaffiliated foreign sources (not shown) after October 1980. held by affiliates. Averages of Wednesday data. Nondeposit funds have revised back to November 1980, and security RPs have revised back to December 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks All 1.25 ASSETS AND LIABILITIES OF COMMERCIAL BANKING INSTITUTIONS Last-Wednesday-of-Month Series Billions of dollars except for number of banks Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. DOMESTICALLY CHARTERED COMMERCIAL BANKS' 1 Loans and securities, excluding interbank 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 1.220.6 1.241.8 2 Loans, excluding interbank 832.8 851.4 840.2 839.0 840.6 855.4 862.4 872.2 879.2 88( i.8 904.4 3 Commercial and industrial 275.7 281.5 277.6 276.3 277.5 285.4 287.9 293.1 295.8 299.0 306.1 4 Other 557.1 569.9 562.6 562.7 563.1 570.1 574.5 579.1 583.4 587.9 598.3 5 U.S. Treasury securities 107.1 111.2 112.0 113.7 112.9 115.8 114.9 116.1 115.8 114.0 112.4 6 Other securities 210.9 214.6 213.8 214.3 216.0 216.6 217.3 216.9 218.2 219.8 225.0 7 Cash assets, total 175.6 194.2 159.3 165.9 167.9 181.8 180.3 169.8 161.1 173.2 195.3 8 Currency and coin 16.9 19.9 18.7 18.6 17.8 18.8 19.5 19.1 19.6 20.2 19.3 9 Reserves with Federal Reserve Banks 30.4 28.2 25.2 30.4 31.8 38.3 25.2 25.4 27.0 25.4 26.8 10 Balances with depository institutions . 56.1 63.0 54.9 54.6 55.1 57.3 62.0 60.7 56.8 66.0 73.6 11 Cash items in process of collection .. . 72.2 83.0 60.5 62.3 63.3 67.4 73.6 64.6 57.7 61.6 75.6 12 Other assets2 151.3 165.6 155.8 160.1 163.4 167.7 158.8 168.6 158.8 164.2 180.0 13 Total assets/total liabilities and capital... 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 1,557.9 1,617.1 14 Deposits 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 1.182.2 1.225.6 15 Demand 393.0 432.2 351.1 345.5 345.3 356.8 360.7 350.9 333.6 342.5 378.1 16 Savings 209.5 201.3 211.9 214.3 220.5 222.7 220.9 220.7 219.8 218.0 217.6 17 Time 523.7 553.8 565.7 572.3 570.7 572.2 588.7 594.3 607.3 621.7 629.9 18 Borrowings 157.3 156.4 156.4 163.2 163.8 179.5 155.7 169.3 159.3 163.7 175.8 19 Other liabilities 78.1 79.0 76.7 80.3 80.6 81.8 82.3 81.8 86.3 89.8 91.5 20 Residual (assets less liabilities) 116.1 114.2 119.3 117.5 120.0 124.3 125.4 126.7 126.7 122.1 124.3 MEMO: 21 U.S. Treasury note balances included in borrowing 4.4 9.5 9.5 8.5 10.2 16.9 5.5 17.4 7.2 6.9 15.3 22 Number of banks 14.692 14,693 14.689 14.696 14.701 14.713 14,719 14.719 14.719 14,720 14,720 ALL COMMERCIAL BANKING INSTITUTIONS3 23 Loans and securities, excluding interbank 1.262.4 1.253.8 24 Loans, excluding interbank 999999999999999999999933333333333333333333332222222222222222222222......................5555555555555555555555 999999999999999999999922222222222222222222220000000000000000000000......................9999999999999999999999 25 Commercial and industrial 333333333333333333333333333333333333333333330000000000000000000000......................6666666666666666666666 333333333333333333333322222222222222222222229999999999999999999999......................3333333333333333333333 26 Other 666666666666666666666600000000000000000000001111111111111111111111......................9999999999999999999999 555555555555555555555599999999999999999999991111111111111111111111......................6666666666666666666666 27 U.S. Treasury securities 111111111111111111111111111111111111111111113333333333333333333333......................6666666666666666666666 111111111111111111111111111111111111111111115555555555555555555555......................2222222222222222222222 28 Other securities 222222222222222222222211111111111111111111116666666666666666666666......................3333333333333333333333 222222222222222222222211111111111111111111117777777777777777777777......................7777777777777777777777 29 Cash assets, total 222222222222222222222211111111111111111111118888888888888888888888......................6666666666666666666666 111111111111111111111199999999999999999999993333333333333333333333......................6666666666666666666666 30 Currency and coin 22222222222222222222220000000000000000000000......................0000000000000000000000 11111111111111111111117777777777777777777777......................8888888888888888888888 31 Reserves with Federal Reserve Banks 22222222222222222222229999999999999999999999......................0000000000000000000000 33333333333333333333332222222222222222222222......................7777777777777777777777 32 Balances with depository institutions . 88888888888888888888885555555555555555555555......................0000000000000000000000 77777777777777777777777777777777777777777777......................9999999999999999999999 33 Cash items in process of collection .. . 88888888888888888888884444444444444444444444......................7777777777777777777777 66666666666666666666665555555555555555555555......................3333333333333333333333 34 Other assets2 222222222222222222222222222222222222222222222222222222222222222222......................7777777777777777777777 222222222222222222222222222222222222222222225555555555555555555555......................5555555555555555555555 35 Total assets/total liabilities and capital. . . 1111111111111111111111,,,,,,,,,,,,,,,,,,,,,,777777777777777777777700000000000000000000003333333333333333333333......................7777777777777777777777 1111111111111111111111,,,,,,,,,,,,,,,,,,,,,,666666666666666666666677777777777777777777773333333333333333333333......................0000000000000000000000 nnnnnnnnnnnnnnnnnnnnn aaaaaaaaaaaaaaaaaaaaa..................... nnnnnnnnnnnnnnnnnnnnn aaaaaaaaaaaaaaaaaaaaa..................... 36 Deposits 1111111111111111111111......................222222222222222222222233333333333333333333339999999999999999999999......................9999999999999999999999 1111111111111111111111......................111111111111111111111199999999999999999999990000000000000000000000......................6666666666666666666666 37 Demand 444444444444444444444455555555555555555555553333333333333333333333......................6666666666666666666666 333333333333333333333366666666666666666666667777777777777777777777......................4444444444444444444444 38 Savings 222222222222222222222200000000000000000000001111111111111111111111......................6666666666666666666666 222222222222222222222222222222222222222222220000000000000000000000......................7777777777777777777777 39 Time 555555555555555555555588888888888888888888884444444444444444444444......................7777777777777777777777 666666666666666666666600000000000000000000002222222222222222222222......................5555555555555555555555 40 Borrowings 222222222222222222222211111111111111111111110000000000000000000000......................4444444444444444444444 222222222222222222222222222222222222222222223333333333333333333333......................3333333333333333333333 41 Other liabilities 111111111111111111111133333333333333333333335555555555555555555555......................5555555555555555555555 111111111111111111111133333333333333333333337777777777777777777777......................2222222222222222222222 42 Residual (assets less liabilities) 111111111111111111111111111111111111111111117777777777777777777777......................9999999999999999999999 111111111111111111111122222222222222222222221111111111111111111111......................9999999999999999999999 MEMO: 43 U.S. Treasury note balances included in borrowing 9999999999999999999999......................5555555555555555555555 11111111111111111111110000000000000000000000......................2222222222222222222222 44 Number of banks 11111111111111111111115555555555555555555555......................111111111111111111111122222222222222222222220000000000000000000000 11111111111111111111115555555555555555555555,,,,,,,,,,,,,,,,,,,,,,111111111111111111111144444444444444444444447777777777777777777777 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 corporations, and New York State foreign investment corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 DomesticN onfinancial Statistics • October 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 AAccccoouunntt Aug. 5 Aug. 12 Aug. 19 Aug. 26 Sept. 2 Sept. 9 Sept. 16 Sept. 23 Sept. 30 1 Cash items in process of collection 57.990 52.659 54.415 50,475 53,951 56,523 58.636 51,874 62,340 2 Demand deposits due from banks in the United States 20.215 21.019 21.533 19,971 20,743 23,504 22.972 21,282 25,677 3 All other cash and due from depository institutions.. 33,884 33.554 35,674 32,252 33,735 29,638 34.576 34,576 33,253 4 Total loans and securities 586,623 579,474 577,499 579,031 585,652 587,229 586,916 581,035 596,622 Securities 5 U.S. Treasury securities 41,294 40.475 40,431 39,835 38.856 39.399 39,370 38,075 37,784 6 Trading account 8.072 7.356 8.337 7,824 6.868 7.397 7.499 6.477 6,144 7 Investment account, by maturity 33,221 33.119 32.095 32,010 31,988 32,002 31.871 31,598 31,640 8 One year or less 10.012 10.022 9.205 9,170 9.519 9,519 9.395 9,240 9,610 9 Over one through five years 19,430 19.341 19,149 19,150 18,995 18,966 18,934 18,825 18,510 10 Over five years 3.780 3.756 3,741 3,691 3,473 3,517 3.543 3,532 3,521 11 Other securities 78.527 77.746 77,375 77,715 78.692 77,794 77.553 77.363 79,485 12 Trading account 4.167 3,273 2,911 2,874 3.720 2.722 2,425 2,341 4.277 13 Investment account 74,360 74.473 74.464 74,840 74,972 75.072 75.128 75,022 75.208 14 U.S. government agencies 16.149 16.159 16.128 16,345 16.374 16.317 16,206 16,128 16.083 15 States and political subdivisions, by maturity.... 55,459 55.506 55,538 55.641 55,732 55.889 56,047 56,048 56,285 16 One year or less 7.266 7.266 7.194 7,235 7,450 7,541 7,626 7,597 7,813 17 Over one year 48,194 48,240 48.344 48,407 48,282 48.348 48.421 48,451 48.472 18 Other bonds, corporate stocks and securities. ... 2,751 2,808 2,799 2,854 2,866 2.866 2.875 2.846 2,840 Loans 19 Federal funds sold1 31.533 28.236 27.831 28,241 29,065 31.358 30.668 28,385 32,943 20 To commercial banks 24,138 20.682 20,073 19,742 21,187 23.633 22.700 20,811 24,146 21 To nonbank brokers and dealers in securities 5.524 5.639 5.732 6,519 5.982 5,803 6,125 5,944 6,906 22 To others 1.872 1.915 2,026 1,980 1.896 1,922 1,843 1,630 1,890 23 Other loans, gross 447.462 445.237 444.102 445,520 451,358 451.025 451.687 449,580 458,616 24 Commercial and industrial 184,219 181.535 182.765 182,842 184.974 184,083 185.181 184,960 188.100 25 Bankers acceptances and commercial paper 4,468 3,909 3.335 3,248 3.721 3.149 3,082 2.897 3,716 26 All other 179,750 179,626 179,430 179,594 181,254 180.934 182,099 182,063 184,384 27 U.S. addressees 172.294 172.226 172,042 172,180 173.706 173.495 174.784 174,642 177,011 28 Non-U.S. addressees 7.456 7.400 7,388 7.414 7,548 7,439 7.315 7,422 7,372 29 Real estate 119.182 119.623 119.962 120,146 120,293 120.551 121,023 121.312 121,553 30 To individuals for personal expenditures 71.610 71.615 71.785 72,053 72,335 72,480 72.583 72.819 73,058 To financial institutions 31 Commercial banks in the United States 6.093 5.928 6,251 6,543 6.837 7,258 6.724 6,378 6.914 32 Banks in foreign countries 9.114 9.031 9,117 9,421 9,790 10,444 9.811 9,822 10,367 33 Sales finance, personal finance companies, etc .. 10,166 10.238 10,127 10,131 10,614 10.223 10.266 9.861 10,418 34 Other financial institutions 16,395 16,355 16.274 16,273 16,523 16,415 16,296 15,806 15,839 35 To nonbank brokers and dealers in securities 7.246 5,578 4.937 5,061 5,992 5.277 5,464 5,243 7,594 36 To others for purchasing and carrying securities2 .. 2.617 2.591 2.594 2,580 2.624 2,625 2,566 2,577 2.606 37 To finance agricultural production 6.032 6.043 6,018 5,975 5,977 5,942 5,965 5,986 5,978 38 All other 14,788 14,701 14.272 14.495 15,399 15.727 15,806 14,816 16,188 39 LESS; Unearned income 5,934 5,953 5.963 5,995 5,964 5.969 5,980 5,990 5,848 40 Loan loss reserve 6.259 6,267 6.277 6,284 6.355 6.378 6,383 6.379 6,358 41 Other loans, net 435.269 433,016 431,862 433,240 439.039 438.677 439.324 437,211 446,410 42 Lease financing receivables 10,411 10.422 10,449 10,475 10,512 10.526 10,503 10,515 10,575 43 All other assets 88,638 88.522 88.871 89,043 90,839 94,110 92,178 90,241 95.953 44 Total assets 797,760 785,651 788,442 781,247 795,433 801,529 805,782 789,524 824,420 Deposits 45 Demand deposits 196,528 187,520 187.963 181,461 187,411 193,977 197.503 183,524 209.292 46 Mutual savings banks 686 571 570 584 640 677 646 567 691 47 Individuals, partnerships, and corporations 132.306 128.077 123.357 122,301 127,994 130,960 133,763 123,768 136,184 48 States and political subdivisions 4.617 3.856 4.244 4,116 4,532 4,136 4,698 4,734 5,137 49 U.S. government 3.200 2.121 3,023 1,870 1,106 1.975 3,102 2.488 2,195 50 Commercial banks in the United States 36.314 34.659 38.939 34,596 36,984 38.651 37,841 34.355 43,887 51 Banks in foreign countries 8.822 8.580 9,001 9,151 7,451 8.640 8.559 8,912 10,791 52 Foreign governments and official institutions 1.329 1,878 1.698 1,180 1,427 2,315 1,685 1,774 1,550 53 Certified and officers' checks 9.253 7,778 7,130 7,163 7,276 6.622 7,208 6,906 8,857 54 Time and savings deposits 343,767 345.178 345,301 346,841 349,890 347,971 347,168 348,195 349,197 55 Savings 77.553 76.709 76.187 75,500 76,204 76.668 76,338 74,966 75,388 56 Individuals and nonprofit organizations 73,930 73.082 72,599 71,940 72,672 73.082 72,838 71.487 71,844 57 Partnerships and corporations operated for profit 3,082 3.058 3.012 33,,002233 3,007 3,052 2,967 22,,994499 22,,993355 58 Domestic governmental units 519 547 553 513 502 508 511 509 546 59 All other 22 23 23 23 24 26 22 20 22 60 Time 266,214 268,468 269,114 271,342 273,686 271,303 270,830 273,229 273,809 61 Individuals, partnerships, and corporations 233,805 235,663 235.919 237,718 239,748 237,754 237,366 239,450 240,318 o2 States and political subdivisions 18.757 19.087 19,413 19,674 19,721 19.514 19,304 19,578 19,243 63 U.S. government 273 272 256 246 238 269 243 230 209 64 Commercial banks in the United States 8.247 8,308 8,312 8,407 8,509 8,411 8,638 8,789 8,878 65 Foreign governments, official institutions, and banks 5,132 5.138 5.215 5,296 5,470 5.355 5,279 5,183 5,161 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 1,100 502 881 299 1,240 744 700 1,423 1,281 67 Treasury tax-and-loan notes 1,541 1,814 2,163 3,957 3,093 997 7,194 8,237 12,062 68 All other liabilities for borrowed money3 133,217 128,903 128,739 123,730 129,203 135,706 130,711 124,385 125,891 69 Other liabilities and subordinated notes and debentures 69,014 69.124 70,958 72,518 71,746 69,206 69,670 71,159 73,505 70 Total liabilities 745,167 733,040 736,005 728,806 742,583 748,601 752,946 736,924 771,288 71 Residual (total assets minus total liabilities)4 52,593 52,611 52.437 52,441 52,850 52,928 52,836 52,600 53,193 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 mFoRre AonS DEeRc. 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 1981 ^ug. 5 Aug. 12 Aug. 19 Aug. 26 Sept. 2P Sept. 9p Sept. 16'' Sept. 23P Sept. 30p 1 Cash items in process of collection 54,861 49,759 51,470 47,798 50.877 53,107 55.190 48.925 59.196 2 Demand deposits due from banks in the United States 19,568 20.362 20,847 19,356 20.081 22,720 22.272 20.647 25,040 3 All other cash and due from depository institutions 32,004 31.446 33,299 29,974 31.718 27,645 32.339 32.272 31,015 4 Total loans and securities 546,084 540,495 539,209 540,662 546,969 548,335 547,984 542,339 557,717 Securities 5 U.S. Treasury securities 37,873 37,087 37,033 36,441 35.456 35,967 35.947 34,666 34,323 6 Trading account 7,983 7,278 8,244 7,747 6.798 7.323 7.424 6,415 6,028 7 Investment account, by maturity 29,890 29,808 28,789 28,694 28,658 28,644 28.523 28.251 28,296 8 One year or less 9.108 9,133 8.329 8,284 8,595 8.572 8.462 8,333 8,652 9 Over one through five years 17.370 17.272 17,070 17,069 16.922 16,903 16,866 16.720 16,434 10 Over five years 3,412 3,403 3,390 3,341 3.141 3.169 3,194 3,198 3,209 11 Other securities 72.222 71.442 71.008 71,402 72.385 71,499 71,270 71.053 73,090 12 Trading account 4,107 3,216 2,857 2,814 3.661 2.673 2,373 2,277 4,111 13 Investment account 68,116 68,226 68,230 68,588 68.724 68,826 68,896 68.776 68,979 14 U.S. government agencies 14,942 14,949 14,936 15,151 15.184 15.129 15.022 14,944 14,908 15 States and political subdivision, by maturity .. 50.598 50.645 50,666 50.754 50.843 51,001 51.169 51,156 51,402 16 One year or less 6,494 6.497 6,432 6,465 6.664 6.766 6,858 6,829 7,072 17 Over one year 44,103 44.148 44.234 44,289 44.180 44.235 44,311 44,327 44.330 18 Other bonds, corporate stocks and securities.. 2,576 2,632 2.628 2,683 2.697 2.696 2.705 2.676 2,669 Loans 19 Federal funds sold' 26,170 24.427 24,735 25,041 25.594 27,792 27.006 24.940 29,765 20 To commercial banks 19.280 17.418 17.520 17,221 18.407 20,631 19,671 17.997 21,532 21 To nonbank brokers and dealers in securities 5,048 5,124 5,263 5,876 5.319 5,272 5,516 5,342 6,366 22 To others 1,842 1,884 1,970 1,944 1,867 1.889 1,819 1.602 1,866 23 Other loans, gross 420.988 418,729 417,542 419,024 424,831 424.398 425.095 423,020 431,720 24 Commercial and industrial 175.154 174,465 173,732 173,843 175,968 175,083 176.178 175,985 178.989 25 Bankers acceptances and commercial paper... 4,299 3,740 3,158 3.089 3,592 3,025 2,972 2.799 3,610 26 All other 170.855 170,725 170,575 170.754 172,376 172,058 173,207 173.186 175,379 27 U.S. addressees 163.480 163,402 163.264 163,418 164,903 164,694 165,968 165,842 168,084 28 Non-U.S. addressees 7.375 7.323 7.311 7,336 7.473 7.364 7,239 7,344 7,295 29 Real estate 112.570 112,980 113,267 113,478 113,620 113.870 114.315 114.587 114,815 30 To individuals for personal expenditures 62,716 62.718 62,864 63,113 63.412 63,494 63.620 63,833 64.025 To financial institutions 31 Commercial banks in the United States 5,967 5.812 6.122 6.421 6.718 7.123 6,608 6,269 6,732 32 Banks in foreign countries 9,038 8,962 9,056 9.360 9,711 10,374 9.729 9,733 10.293 33 Sales finance, personal finance companies, etc 10.006 10.084 9,976 9,980 10.471 10.088 10.130 9.726 10,278 34 Other financial institutions 16,012 15.953 15,857 15,832 16,086 15,958 15.840 15,358 15.398 35 To nonbank brokers and dealers in securities 7.177 5,509 4,862 4,992 5.921 5.212 5,407 5,184 7.533 36 To others for purchasing and carrying securities2 2,386 2,364 2.367 2,353 2.393 2.391 2.334 2.343 2.369 37 To finance agricultural production 5,878 5,889 5.863 5.822 5.822 5.787 5.812 5,834 5.826 38 All other 14,083 13.992 13.574 13,830 14,709 15.017 15.120 14.168 15.461 39 LESS: Unearned income 5,294 5,307 5,314 5,346 5,324 5.326 5.334 5.340 5,205 40 Loan loss reserve 5.875 5,883 5,893 5.901 5.973 5.995 6,001 6,000 5,977 41 Other loans, net 409,818 407.539 406,335 407,778 413,535 413.077 413,760 411.679 420.538 42 Lease financing receivables 10,119 10.131 10,157 10.184 10.214 10,229 10.206 10,217 10,275 43 All other assets 85,914 85,790 86,158 86.274 87.954 91,214 89,339 87,437 92,937 44 Total assets 748,550 737,984 741,141 734,248 747,814 753,250 757,331 741,836 776,180 Deposits 45 Demand deposits 182,870 175.505 176.386 170,262 175.611 181,845 185.121 171,915 197,148 46 Mutual savings banks 660 550 551 562 606 645 618 548 664 47 Individuals, partnerships, and corporations 121,829 118,919 114,317 113,434 118.767 121.528 124,231 114,925 126,748 48 States and political subdivisions 4,135 3,414 3.727 3,605 4,077 3.646 4,167 4,094 4.538 49 U.S. government 2.968 1.948 2,773 1,687 979 1.800 2,690 2,051 2,006 50 Commercial banks in the United States 34,748 33,257 37,546 33,324 35,442 37,042 36,363 33,044 42,409 51 Banks in foreign countries 8,758 8,519 8,929 9,070 7,377 8,548 8,491 8,855 10.713 52 Foreign governments and official institutions 1,328 1,877 1,697 1,679 1,388 2,314 1,684 1,772 1.549 53 Certified and officers' checks 8.444 7,021 8,846 6.899 6.974 6.324 6,879 6.624 8.521 54 Time and savings deposits 321.511 322,877 322,944 324,471 327,292 325.307 324,519 325.496 326.589 55 Savings 71,626 70,856 70.357 69,740 70.368 70.810 70.515 69,248 69.630 56 Individuals and nonprofit organizations 68,278 67,501 67,046 66,449 67.106 67,495 67.279 66,032 66,384 57 Partnerships and corporations operated for profit 2,847 2.825 2,780 2,789 2,776 2.823 2,742 2,726 2.713 58 Domestic governmental units 479 507 508 479 462 467 471 469 511 59 All other 22 23 23 23 24 26 22 20 22 60 Time 249,884 252.021 252,587 254,731 256,924 254,496 254,004 256,249 256,959 61 Individuals, partnerships, and corporations 219,573 221,336 221,557 223,270 225,189 223.103 222,666 224.612 225.565 62 States and political subdivisions 17,049 17.346 17,632 17,896 17.898 17,713 17,560 17.827 17.524 63 U.S. government 263 262 246 236 228 258 233 220 198 64 Commercial banks in the United States 7,868 7,940 7,937 8,033 8,138 8,067 8,265 8.408 8,510 65 Foreign governments, official institutions, and banks 5.132 5,138 5.215 5,296 5,470 5.355 5,279 5,183 5,161 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 1,001 459 667 275 1,210 714 700 1,395 1,126 67 Treasury tax-and-loan notes 1.394 1.659 1,958 3.659 2,812 912 6,702 7,590 11,103 68 All other liabilities for borrowed money3 125,333 120,930 120,961 115,831 121.504 127,524 122,878 116,846 118,744 69 Other liabilities and subordinated notes and debentures 67.310 67,417 69,267 70,781 70,009 67.500 68,022 69,440 71,735 70 Total liabilities 699,420 688,848 692,183 685,279 698,438 703,802 707,942 692,683 726,444 71 Residual (total assets minus total liabilities)4 49,130 49,136 48,958 48,969 49,376 49,448 49.389 49,153 49,736 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 repurchase; for information on these liabilities at banks with assets of $1 billion or more on Dec. 31, 1977, see table 1.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • October 1981 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1981 AAccccoouunntt Aug. 5 Aug. 12 Aug. 19 Aug. 26 Sept. 2p Sept. 9p Sept. 16 p Sept. 23p Sept. 30p 1 Cash items in process of collection 20,568 18,644 19,945 18,285 18,348 16,510 19,666 18,204 25,164 2 Demand deposits due from banks in the United States 13,765 14.862 15,205 13,592 14,893 14,854 16,283 15,392 18,738 3 All other cash and due from depository institutions.. 10,079 6,735 8,511 6,645 7,492 6,709 6,997 7,227 7,190 4 Total loans and securities' 134,354 132,139 130,575 130,561 132,689 132,670 133,352 132,343 139,236 Securities 5 6 7 Investment account, by maturity 9,011 8.922 8,391 8,286 8,328 8,352 8,300 8,203 8,320 8 One year or less 2,400 2.386 1,926 1,856 1,892 1,891 1,851 1,850 1,900 9 Over one through five years 5,733 5.657 5,638 5,557 5,571 5,582 5,584 5,488 5,552 10 Over five years 878 878 827 873 865 880 865 865 867 11 1? 13 Investment account 14,364 14.335 14,283 14,339 14,352 14,438 14,487 14,498 14,554 14 U.S. government agencies 2,528 2,490 2,479 2,460 2,446 2,447 2,435 2,442 2,405 15 States and political subdivision, by maturity .... 11,153 11,151 11,124 11,154 11,152 11,236 11,290 11,294 11,380 16 One year or less 1,769 1,775 1,694 1,705 1,765 1,846 1,867 1,867 1,936 17 Over one year 9,384 9,376 9,430 9,449 9,387 9,389 9,423 9,426 9,444 18 Other bonds, corporate stocks and securities.... 682 693 680 724 754 756 762 762 769 Loans 19 Federal funds sold3 8,388 7,848 7,933 7,577 7,025 6,785 7,416 7,616 9,517 20 To commercial banks 4,598 4,014 4,156 3,934 3,276 2,998 3,943 4,331 5,260 21 To nonbank brokers and dealers in securities 2,849 2,907 2,758 2,715 2,704 2,786 2,593 2,446 3,262 22 To others 940 927 1,019 928 1,045 1,001 880 838 995 23 Other loans, gross 105,876 104,321 103,270 103,698 106,340 106,484 106,538 105,412 110,166 24 Commercial and industrial 54,285 53,713 53,412 53,392 54,196 53,702 54,184 53,880 54,658 25 Bankers acceptances and commercial paper 1,450 1.277 954 979 1,118 931 944 708 999 26 All other 52,836 52.437 52.459 52,413 53,078 52,770 53,240 53,172 53,659 27 U.S. addressees 50,341 49.985 50,023 50,100 50,678 50,395 50,868 50,780 51,325 28 Non-U.S. addressees 2,495 2,452 2,436 2,314 2,400 2,376 2,371 2,392 2,334 29 Real estate 16,466 16,587 16,700 16,740 16,798 16,825 16,947 17,007 17,037 30 To individuals for personal expenditures 10,200 10,260 10,303 10,332 10,431 10,503 10,604 10,621 10,654 31 To financial institutions Commercial banks in the United States 1,488 1.258 1,548 1,473 1,523 2,011 1,647 1,824 1,950 32 Banks in foreign countries 4,737 4,572 4,454 4,762 4,814 5,334 4,864 4,992 5,236 33 Sales finance, personal finance companies, etc... 4,331 4,287 4,093 4,157 4,532 4,355 4,351 4,121 4,584 34 Other financial institutions 4,619 4,641 4,672 4,709 4,804 4,784 4,669 4,622 4,626 35 To nonbank brokers and dealers in securities 4,329 3,215 2,889 2,884 3,729 3,333 3,476 2,960 5,191 36 To others for purchasing and carrying securities4 .. 610 581 573 564 609 601 593 596 618 37 To finance agricultural production 373 364 356 334 324 319 326 333 320 38 All other 4,436 4,842 4,269 4,350 4,579 4,717 4,876 4,458 5,291 39 LESS: Unearned income 1,319 1,330 1,337 1.370 1,359 1,379 1,384 1,380 1,328 40 Loan loss reserve 1,965 1.956 1.965 1,970 1,997 2,009 2,005 2.007 1,993 41 Other loans, net 102,592 101,035 99,968 100,359 102,984 103,095 103,149 102,026 106,845 42 Lease financing receivables 2,250 2,229 2,245 2,247 2,259 2,263 2,269 2,274 2,294 43 All other assets5 36,356 35,580 37,656 37,798 37,577 39,227 38,041 36,871 39,274 44 Total assets 217,372 210,190 214,137 209,129 213,259 212,232 216,608 212,310 231,896 Deposits 45 Demand deposits 66,726 64,014 66,159 62,450 63,299 64,376 68,456 64,514 80,131 46 Mutual savings banks 348 258 278 287 294 330 336 286 368 47 Individuals, partnerships, and corporations 33,249 31,005 29,050 29,004 30,759 30,766 33,764 30,976 35,068 48 States and political subdivisions 433 362 323 322 449 451 388 509 669 49 U.S. government 744 651 740 467 184 511 828 558 496 50 Commercial banks in the United States 19,860 20,120 24,277 20,560 21,915 21,228 22,018 20,612 28,952 51 Banks in foreign countries 6,918 6.926 7,081 7,214 5,664 6,688 6,695 7,135 8,864 52 Foreign governments and official institutions 1,053 1,597 1,392 1,408 1,115 2,017 1,438 1,469 1,294 53 Certified and officers' checks 4,121 3,095 3,011 3,188 2,918 2,384 2,990 2,968 4,420 54 Time and savings deposits 61,459 61,528 61,099 61,896 62,651 62,097 62,353 62,542 63,317 55 Savings 9,227 9.204 9,142 9,054 9,069 9,152 9,137 8,944 9,016 56 Individuals and nonprofit organizations 8,878 8,821 8,783 8,703 8,723 8,792 8,783 8,598 8,640 57 Partnerships and corporations operated for profit 256 251 250 253 252 262 254 249 250 58 Domestic governmental units 90 130 108 96 91 94 97 95 120 59 All other 2 2 2 3 3 3 3 2 4 60 Time 52,232 52,325 51,957 52,842 53,582 52,945 53,216 53,598 54,301 61 Individuals, partnerships, and corporations 45,394 45,532 44,959 45,730 46,308 45,824 46,237 46,676 47,189 62 States and political subdivisions 1,691 1,695 1,817 1,883 1,916 1,886 1,875 1,946 1,963 63 U.S. government 100 89 90 90 81 72 54 40 36 64 Commercial banks in the United States 2,698 2,652 2,648 2,707 2,690 2,647 2,628 2,615 2,770 65 Foreign governments, official institutions, and banks 2,349 2,356 2.444 2,432 2,587 2,517 2,421 2,322 2,343 Liabilities for borrowed money 66 900 475 1 235 67 Treasury tax-and-loan notes 259 477 411 1,145 718 153 1,897 2,168 2,870 68 All other liabilities for borrowed money6 44,706 40.987 41,239 37,852 40,097 41,783 39,971 37,379 40,690 69 Other liabilities and subordinated notes and debentures 27,757 26,787 28,921 29,619 29,047 27,287 27,011 28,147 28,177 70 Total liabilities 200,906 193,794 197,829 192,962 196,712 195,696 200,164 195,986 215,186 71 Residual (total assets minus total liabilities)7 16,466 16,396 16,308 16,168 16,547 16,536 16,444 16,324 16,710 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 other analytic uses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A21 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1981 AAccccoouunntt Aug. 5 Aug. 12 Aug. 19 Aug. 26 Sept. IP Sept. 9p Sept. 16 p Sept. 23p Sept. 30p BANKS WITH ASSETS OF S750 MILLION OR MORE 1 Total loans (gross) and securities adjusted' 568,585 565.084 563,415 565,025 569,948 568,685 569,855 566,215 577,768 2 Total loans (gross) adjusted' 448,764 446.864 445,609 447,476 452,400 451,492 452,931 450,777 460.498 3 Demand deposits adjusted2 99,024 99,080 91,585 94,520 95,370 96,828 97,923 94,807 100.870 4 Time deposits in accounts of $100,000 or more 175.669 177,213 177,539 179,590 181,354 178,743 177,936 180,091 180.492 5 Negotiable CDs 127,198 128,432 128,472 130,180 131.432 129.090 128,254 130.026 130,897 6 Other time deposits 48,470 48,781 49.067 49,410 49,922 49,653 49.682 50,064 49,595 7 Loans sold outright to affiliates3 2,642 2,616 2,631 2,656 2,718 2.686 2,666 2.734 2.770 8 Commercial and industrial 1,965 1,940 1.959 1,973 1,989 1.999 1,956 2.037 2.035 9 Other 677 676 671 683 729 686 710 696 735 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and securities adjusted' 532,006 528,455 526.774 528,266 533,141 531.902 533.039 529,414 540,634 11 Total loans (gross) adjusted' 421,911 419,926 418,653 420.423 425,300 424.436 425,821 423,694 433,221 12 Demand deposits adjusted2 90,293 90,541 84.597 87,452 88,312 89.897 90.879 87.894 93,537 13 Time deposits in accounts of $100,000 or more 166,514 167,985 168,249 170,228 171.886 169,239 168,408 170,424 170,979 14 Negotiable CDs 120,983 122,187 122.177 123,819 125.011 122.674 121.803 123.478 124,391 15 Other time deposits 45,531 45.798 46.072 46,408 46.876 46,565 46,605 46,946 46,588 16 Loans sold outright to affiliates3 2,568 2.544 2,560 2,580 2,643 2,611 2.590 2.649 2,687 17 Commercial and industrial 1.903 1.882 1,902 1,914 1,930 1,942 1,899 1,972 1,972 18 Other 665 662 658 666 714 669 691 676 715 BANKS IN NEW YORK CITY 19 Total loans (gross) and securities adjusted'-4 131,551 130.154 128,173 128,494 131.246 131,050 131.150 129,574 135,347 20 Total loans (gross) adjusted' 108.176 106,897 105,499 105,868 108,566 108.259 108,364 106,873 112,473 21 Demand deposits adjusted2 25,554 24,599 21,189 23.138 22.851 26,127 25.944 25.140 25,520 22 Time deposits in accounts of $100,000 or more 40,014 41,000 40.597 41.454 42.085 41.431 41,617 41,992 42,739 23 Negotiable CDs 30.520 30.460 30,039 30,859 31,292 30,767 30,923 31,170 31,853 24 Other time deposits 10.494 10.540 10,557 10.594 10.793 10,664 10,694 10,822 10,887 1. Exclusive of loans and federal funds transactions with domestic commercial 3. Loans sold are those sold outright to a bank's own foreign branches, nonbanks. consolidated nonbank affiliates of the bank, the bank's holding company (if not 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 Nonfinancial Statistics • October 1981 1.291 LARGE WEEKLY REPORTING BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities Millions of dollars, Wednesday figures Account Aug. 5 Aug. 12 Aug. 19 Aug. 26 Sept. 2 p Sept. 9p Sept. 16 p Sept. 23p Sept. 30P 1 Cash and due from depository institutions 24,136 22,323 24,958 23,560 23,233 21,232 24,826 23,488 29,499 2 Total loans and securities 61,280 62,144 62.005 62,564 61,829 62,136 63,443 65,694 66,151 3 U.S. Treasury securities 1,725 1,766 1,757 1,824 1,760 1,782 1,897 1,951 1,815 4 Other securities 995 997 987 987 1,005 1,003 1.028 1,020 1,015 5 Federal funds sold1 3,788 4,752 4,602 5,137 4,192 3,436 3,631 5,033 3,941 6 To commercial banks in U.S 3,227 4,148 4,272 4,606 3,823 3,164 3,430 4,888 3,783 7 To others 562 605 329 531 369 272 201 146 158 8 Other loans, gross 54,771 54,628 54,659 54,616 54,871 55,916 56,887 57,691 59,381 9 Commercial and industrial 27,692 27,673 27,761 27,568 27,460 28,211 28,506 28,607 29,719 10 Bankers acceptances and commercial paper 3.475 3,482 3,458 3,446 3,609 3,565 3,565 3,805 4,021 11 All other 24,217 24,191 24,303 24,122 23,851 24,646 24,940 24,802 25,698 12 U.S. addressees 14,111 14,170 14,173 14.009 13,850 14,436 14,764 14,793 15,594 13 Non-U.S. addressees 10,106 10,020 10,130 10,112 10,000 10,210 10,176 10,009 10,104 14 To financial institutions 19,234 19,227 19,322 19,149 19,370 19,627 20,037 20,657 20,808 15 Commercial banks in U.S 11,516 11,692 11,743 11,518 11,253 11,460 11,936 12,369 12,427 16 Banks in foreign countries 7,411 7,223 7,273 7,297 7,766 7,813 7,756 7,950 8,028 17 Nonbank financial institutions 307 312 305 333 351 354 345 337 353 18 For purchasing and carrying securities .. 730 564 570 563 588 613 756 631 920 19 All other 7,115 7,164 7,006 7,337 7,452 7,464 7,589 7,796 7,933 20 Other assets (claims on nonrelated parties) 10,315 10,222 10,365 10,655 10,382 10,233 10,665 10,703 10,855 21 Net due from related institutions 9,601 9,316 9,217 9,286 9,252 9,218 9,520 9,941 9,755 22 Total assets 105,332 104,005 106,546 106,066 104,697 102,819 108,454 109,826 116,261 23 Deposits or credit balances2 42,099 40,669 42,904 42,525 41,550 40,308 44,532 42,683 47,118 24 Credit balances 2,243 2,614 2,646 2,620 2,330 2,025 2,688 2,016 2,376 25 Demand deposits 18.152 16,075 18,822 18,166 17,432 16,633 19,695 17,550 21,176 26 Individuals, partnerships. corporations 956 990 998 975 922. 945 931 813 1,168 27 Other 17,196 15,085 17,825 17,191 16,510 15,689 18,763 16,737 20,008 28 Total time and savings 21,704 21,979 21,436 21,739 21,788 21,650 22,150 23,117 23,565 29 Individuals, partnerships, corporations 18,169 18,459 17,800 18,097 18,125 18,105 18,576 19,526 19,764 30 Other 3,535 3,520 3,636 3,642 3,663 3,544 3,574 3,591 3,801 31 Borrowings3 30,895 30,230 30,268 29,941 29,914 30,904 31,139 31,946 32,395 32 Federal funds purchased4 5,254 4,513 4,501 4,315 4,054 4,558 5,596 5,089 5,268 33 From commercial banks in U.S 4,421 3,776 3,730 3,493 3,287 3,746 4,742 4,012 4,416 34 From others 833 737 772 822 767 813 854 1,077 852 35 Other liabilities for borrowed money ... 25,641 25,716 25,767 25,626 25,859 26,345 25,543 26,856 27,127 36 To commercial banks in U.S 21,801 22,136 21,890 21,758 21,687 22,358 21,653 22,447 22,766 37 To others 3,839 3,580 3,876 3,868 4,172 3,987 3,890 4,409 4,361 38 Other liabilities to nonrelated parties 10,733 10,308 10,444 10,682 10,543 10,406 10,820 10,791 10,958 39 Net due to related institutions 21,605 22,799 22,928 22,917 22,691 21,200 21,963 24,406 25,791 40 Total liabilities 105,332 104,005 106,546 106,066 104.697 102,819 108,454 109,826 116,261 MEMO 41 Total loans (gross) and securities adjusted' 46,537 46,304 45,990 46,440 46,753 47,512 48,077 48,438 49,941 42 Total loans (gross) adjusted5 43,817 43.541 43,246 43,629 43,987 44,728 45,152 45,467 47,111 1. Includes securities purchased under agreements to resell. 4. Includes securities sold under agreements to repurchase. 2. Balances due to other than directly related institutions. 5. Excludes loans and federal funds transactions with commercial banks in U.S. 3. Borrowings from other than directly related institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Weekly Reporting Banks A23 1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial Loans Millions of dollars Outstanding Net change during IIInnnddduuussstttrrryyy ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1981 1981 1981 May 27 June 24 July 29 Aug. 26 Sept. 30P Q2 Q3 July Aug. Sept.? 1 Durable goods manufacturing 24,623 25,274 25,370 25,629 26,094 620 821 96 259 465 2 Nondurable goods manufacturing 20,250 20,618 20,175 22,478 23,388 1,217 2,770 -443 2,303 910 3 Food, liquor, and tobacco 4,577 4,404 4,095 4,392 4,437 -176 33 -309 297 45 4 Textiles, apparel, and leather 4,603 4,920 4,994 5,068 5,054 569 134 74 74 -14 5 Petroleum refining 3,440 3,412 3,546 3,587 3,958 430 545 134 40 371 6 Chemicals and rubber 3,957 4,049 3,791 5,500 5,751 211 1,702 -258 1,709 251 7 Other nondurable goods 3,672 3,832 3,749 3,931 4,188 182 356 -83 182 257 8 Mining (including crude petroleum and natural gas) 17,197 18,194 19,658 20,019 21,294 2,444 3,099 1,464 361 1,275 9 Trade 26,306 26,107 26,462 26,408 27,016 490 908 355 -54 607 10 Commodity dealers. 1,865 1,499 1,601 1,659 1,668 -451 168 102 58 9 11 Other wholesale 12,023 12,087 12,405 12,377 12,619 212 532 318 -28 242 12 Retail 12,418 12,520 12,456 12,372 12,729 728 208 -64 -84 375 13 Transportation, communication, and other public utilities 20,403 20,824 21,027 21,418 21,875 851 1,051 203 391 457 14 Transportation 8,343 8,196 8,251 8,283 8,475 89 279 55 32 192 15 Communication 3,462 3,542 3,545 3,580 3,536 381 -6 3 35 -44 16 Other public utilities 8,597 9,086 9,231 9,555 9,864 381 778 145 324 309 17 Construction 6,988 6,984 7,108 7,132 7,263 758 279 124 24 131 18 Services 24,421 24,546 24,521 24,771 25,311 934 766 -25 250 540 19 All other2 15,008 15,177 15,444 15,562 15,843 -4 666 266 118 281 20 Total domestic loans 155,195 157,724 159,765 163,418 168,084 7,311 10,360 2,041 3,653 4,666 21 MEMO: Term loans (original maturity more than 1 year) included in domestic loans 82,411 83,402 84,354 86,103 86,367 4,104 2,965 952 1,749 264 1. Adjustment bank amounts represent accumulated adjustments originally made NOTE. New series. The 134 large weekly reporting commercial banks with doto offset the cumulative effects of mergers. These adjustment amounts should be mestic assets of $1 billion or more as of Dec. 31, 1977, are included in this series. added to outstanding data for any date in the year to establish comparability with The revised series is on a last-Wednesday-of-the-month basis. Partly estimated any date in the subsequent year. Changes shown have been adjusted for these historical data are available from the Banking Section, Division of Research and amounts. Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 2. Includes commercial and industrial loans at a few banks with assets of $1 20551. billion or more that do not classify their loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • October 1981 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations' Billions of dollars, estimated daily-average balances Commercial banks TTyyppee ooff hhoollddeerr 19792 1980 1981 11997755 11997766 11997777 11997788 DDeecc.. DDeecc.. DDeecc.. DDeecc.. 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 11997755 11997766 11997777 11997788 DDeecc.. DDeecc.. DDeecc.. DDeecc.. 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 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 estisample was reduced to 232 banks from 349 banks, and the estimation procedure mates for these large banks are constructed quarterly on the basis of 97 sample was modified slightly. To aid in comparing estimates based on the old and new banks and are not comparable with earlier data. The following estimates in billions reporting sample, the following estimates in billions of dollars for December 1978 of dollars for December 1978 have been constructed for the new large-bank panel; have been constructed using the new smaller sample; financial business, 27.0; financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5; nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other, 15.1. other, 6.8. 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 A25 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1981 IInnssttrruummeenntt 11997777 11997788 11997799'' 11998800 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Feb. Mar. Apr. May June July Aug. Commercial paper (seasonally adjusted) 1 All issuers 65,051 83,438 112,154 123,703 128,252 130,548 132,052 139,224 145,652 150,945 R 157,081 Financial companies2 Dealer-placed paper3 2 Total 8,796 12,181 16,722 18,186 18,805 20,489 22,029 22,819 24,442 24,497 26,370 3 Bank-related 2,132 3,521 2,874 3,561 3,742 4,163 4,437 4,800 4,750 5,267 6,037 Directly placed paper4 4 Total 40,574 51,647 64,748 67.888 68,936 69,461 69,537 71,842 74,952 79,571 80,769 5 Bank-related 7,102 12,314 17,598 22,382 22,331 21,604 22,858 23,880 24,107 26,104 25,153 6 Nonfinancial companies5 15,681 19,610 30,684 37,629 40,511 40,598 40,486 44,563 46,258 46,877 49,942 Bankers dollar acceptances (not seasonally adjusted) 7 Total 25,450 33,700 45,321 54,744 58,084 60,089 62,320 60,551 63,427 63,721 64,577 Holder 8 Accepting banks 10,434 8,579 9,865 10,564 9,911 10,117 10,781 10,132 11,595 10,505 9,959 9 Own bills 8,915 7,653 8,327 8,963 8,770 8,735 9,626 9,049 10,207 9,437 9,214 10 Bills bought 1,519 927 1,538 1,601 1,141 1,382 1,155 1,082 1,389 1,068 745 Federal Reserve Banks 11 Own account 954 1 704 776 0 298 0 0 0 453 0 12 Foreign correspondents .. 362 664 1,382 1,791 1,399 1,372 1,383 1,255 1,272 1,459 1,451 13 Others 13,700 24,456 33,370 41,614 46,779 48,303 50,156 49,164 50,560 51,303 53,167 Basis 14 Imports into United States . 6,378 8,574 10,270 11,776 12,976 13,292 13,634 12,775 12,996 13,059 13,313 15 Exports from United States 5,863 7,586 9,640 12.712 12,979 13,451 13,368 13,057 13,388 13,296 13,774 16 All other 13,209 17,540 25,411 30,257 32,129 33,347 35,319 34,768 37,043 37,365 37,490 1. A change in reporting instructions results in offsetting shifts in the dealer- 3. Includes all financial company paper sold by dealers in the open market. placed and directly placed financial company paper in October 1979. 4. As reported by financial companies that place their paper directly with inves- 2. Institutions engaged primarily in activities such as, but not limited to. com- tors. mercial, savings, and mortgage banking; sales, personal, and mortgage financing; 5. Includes public utilities and firms engaged primarily in such activities as comfactoring, finance leasing, 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

A26 Domestic Nonfinancial Statistics • October 1981 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Effective date Rate Effective Date Rate Month Average rate 1981—Jan. 2 . 20.50 1981—May 4. 19.00 1980—Apr. 19.77 1981—Jan. . 9 . 20.00 11. 19.50 May 16.57 Feb.. Feb. 3. 19.50 2192. . 20.00 June 12.63 Mar. 23. 19.00 20.50 July 11.48 Apr. Mar. 10 18.00 June 3 20.00 Aug. 11.12 May, 17 17.50 July 8 . 20.50 Sept. 12.23 June Apr. 2 17.00 Sept. 15 20.00 Oct. 13.79 July . 24 17.50 22 19.00 Nov. 16.06 Aug. 30. 18.00 Dec. 20.35 Sept. 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, August 3-8, 1981 Size of loan (in thousands of dollars) All 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) $24,597,283 $826,223 $641,885 $674,174 $2,112,392 $769,926 $19,572,683 2 Number of loans 165,324 118.581 20.112 10,549 11.494 1.212 3,376 3 Weighted-average maturity (months) 1.6 3.1 3.5 3.1 3.4 3.2 1.2 4 Weighted-average interest rate (percent per annum) . 21.11 20.76 21.18 21.36 21.37 21.85 21.06 5 Interquartile range1 20.37-22.00 18.81-22.93 18.81-23.16 19.56-23.25 19.99-22.86 20.84-22.85 20.37-21.76 Percentage of amount of loans 6 With floating rate 34.5 25.2 39.0 48.0 59.3 71.8 30.1 7 Made under commitment 50.8 24.7 26.4 38.7 49.1 69.3 52.6 8 With no stated maturity 18.5 8.8 10.9 23.1 21.7 32.6 18.2 LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS 9 Amount of loans (thousands of dollars) $3,889,453 $344,172 - $313,708 $189,351 $3,042,222 10 Number of loans 22,151 19.603 1.841 282 425 11 Weighted-average maturity (months) 57.6 26.9 39.2 48.7 63.5 12 Weighted-average interest rate (percent per annum) . 20.62 19.77 20.70 21.45 20.65 13 Interquartile range1 20.50-21.50 17.50-21.94 19.56-22.25 20.50-23.52 20.50-21.11 Percentage of amount of loans 14 With floating rate 79.2 31.3 68.8 80.3 85.7 15 Made under commitment 75.1 23.4 44.8 77.9 83.9 CONSTRUCTION AND LAND DEVELOPMENT LOANS 16 Amount of loans (thousands of dollars) $1,253,985 $94,295 $160,298 $105,325 $508,226 $385,840 17 Number of loans 18,932 11.067 4,048 1,454 2,110 253 18 Weighted-average maturity (months) 8.7 8.6 2.1 6.1 6.5 15.7 19 Weighted-average interest rate (percent per annum) . 20.26 20.34 20.03 19.80 19.23 21.81 20 Interquartile range1 18.00-22.50 17.81-23.11 18.39-22.06 18.00-22.39 16.50-21.19 21.27-22.71 Percentage of amount of loans 21 With floating rate 44.4 41.1 14.7 31.6 25.9 85.5 22 Secured by real estate 93.4 96.7 87.6 94.9 96.7 90.2 23 Made under commitment 46.6 54.6 46.1 36.9 25.3 75.5 24 With no stated maturity 13.3 9.4 3.0 57.8 2.7 20.2 Type of construction 25 1- to 4-family 22.3 78.6 56.6 26.1 6.6 14.0 26 Multifamily 24.0 3.4 1.5 55.6 35.3 15.0 27 Nonresidential 53.7 18.0 41.9 18.3 58.2 71.0 All 250 sizes 1-9 10-24 25-49 50-99 100-249 and over 28 Amount of loans (thousands of dollars) $918,222 $145,418 $143,283 $118,786 $143,410 $78,547 $288,779 29 Number of loans 56,842 40.267 9,823 3,583 2.209 591 369 30 Weighted-average maturity (months) 5.0 5.6 5.2 5.0 6.2 5.2 3.8 31 Weighted-average interest rate (percent per annum) . 19.57 18.82 19.06 18.93 19.60 19.74 20.41 32 Interquartile range1 18.11-20.62 17.72-19.82 17.96-20.23 17.72-19.90 18.68-20.40 17.98-21.50 19.00-22.13 By purpose of loan 33 Feeder livestock 19.63 19.43 19.64 19.33 19.64 18.47 19.86 34 Other livestock 19.88 19.45 19.55 18.47 18.77 17.80 * 35 Other current operating expenses 19.48 18.68 18.86 19.14 19.62 20.50 20.47 36 Farm machinery and equipment 18.87 18.46 18.93 18.85 18.82 * * 37 Other 20.11 19.00 19.62 17.91 19.97 21.12 21.98 1. Interest rate range that covers the middle 50 percent of the total dollar amount NOTE. For more detail, see the Board's E.2(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 A27 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 IInnssttrruummeenntt 11997788 11997799 11998800 June July Aug. Sept. Sept. 4 Sept. 11 Sept. 18 Sept. 25 Oct. 2 MONEY MARKET RATES 1 Federal funds1-2 7.93 11.19 13.36 19.10 19.04 17.82 15.87 16.89 16.50 16.09 15.33 15.00 Commercial paper3-4 2 1-month 7.76 10.86 12.76 17.34 17.70 17.58 15.95 17.06 16.91 15.86 14.88 15.36 3 3-month 7.94 10.97 12.66 16.32 17.00 17.23 16.09 16.94 16.82 15.84 15.32 15.75 4 6-month 7.99 10.91 12.29 15.22 16.09 16.62 15.93 16.57 16.50 15.65 15.29 15.83 Finance paper, directly placed3-4 5 1-month 7.73 10.78 12.44 16.66 17.29 17.37 15.68 16.99 16.73 15.56 14.51 14.96 6 3-month 7.80 10.47 11.49 14.58 15.21 15.88 15.24 15.96 15.97 15.20 14.57 14.56 7 6-month 7.78 10.25 11.28 14.13 14.47 15.32 15.01 15.56 15.55 14.94 14.53 14.50 Bankers acceptances4-5 8 3-month 8.11 11.04 12.78 16.27 17.10 17.22 16.11 17.02 16.71 15.84 15.39 15.79 9 6-month n.a. n.a. n.a. 15.02 16.15 16.56 15.80 16.51 16.29 15.48 15.24 15.70 Certificates of deposit, secondary market6 III 1-month 7.88 11.03 12.91 17.55 17.98 17.91 16.31 17.36 17.27 16.31 15.32 15.43 11 3-month 8.22 11.22 13.07 16.90 17.76 17.96 16.84 17.74 17.61 16.57 16.01 16.48 12 6-month 8.61 11.44 12.99 16.09 17.40 17.98 17.19 17.90 17.87 16.86 16.48 16.95 13 Eurodollar deposits, 3-month2 8.78 11.96 14.00 17.86 18.49 18.79 17.80 18.55 18.48 17.81 17.09 17.61 U.S. Treasury bills4 Secondary market7 14 3-month 7.19 10.07 11.43 14.73 14.95 15.51 14.70 15.59 15.14 14.35 14.29 14.37 15 6-month 7.58 10.06 11.37 14.09 14.74 15.52 14.92 15.72 15.38 14.51 14.43 14.72 16 1-year 7.74 9.75 10.89 13.22 13.91 14.70 14.53 15.05 14.80 14.21 14.16 14.54 Auction average8 17 3-month 7.221 10.041 11.506 14.557 14.699 15.612 14.951 15.583 15.611 14.412 14.198 14.669 18 6-month 7.572 10.017 11.374 13.947 14.402 15.548 15.057 15.646 15.795 14.657 14.129 14.932 1199 77..667788 99..881177 1100..774488 1133..114466 1133..773355 1144..554422 1155..005566 1155..005566 CAPITAL MARKET RATES U.S. Treasury notes and bonds9 Constant maturities10 20 1-year 8.34 10.67 12.05 14.86 15.72 16.72 16.52 17.15 16.93 16.13 16.05 16.52 21 2-year 8.34 10.12 11.77 14.51 15.35 16.28 16.46 16.82 16.77 16.14 16.13 16.55 T> 16.55 16 20 23 3-year 8.29 9.71 11.55 14.29 15.15 16.00 16.22 16.47 16.42 15.97 15.98 16.36 24 5-year 8.32 9.52 11.48 13.95 14.79 15.56 15.93 16.13 16.07 15.70 15.73 16.11 25 7-year 8.36 9.48 11.43 13.67 14.49 15.22 15.65 15.76 15.72 15.39 15.52 15.95 26 10-year 8.41 9.44 11.46 13.47 14.28 14.94 15.32 15.44 15.37 15.05 15.21 15.68 27 20-year 8.48 9.33 11.39 13.20 13.92 14.52 15.07 15.16 15.12 14.76 14.93 15.55 28 30-year 8.49 9.29 11.30 12.96 13.59 14.17 14.67 14.77 14.72 14.37 14.56 15.07 Composite12 29 Over 10 years (long-term) 7.89 8.74 10.81 12.39 13.05 13.61 14.14 14.20 14.18 13.85 14.04 14.59 State and local notes and bonds Moody's series13 30 Aaa 5.52 5.92 7.85 9.86 10.21 11.10 11.55 11.10 11.80 11.80 11.50 11.80 31 Baa 6.27 6.73 9.01 11.21 11.55 12.78 13.60 13.50 13.70 13.70 13.50 13.50 32 Bond Buyer series14 6.03 6.52 8.59 10.67 11.14 12.26 12.92 13.10 13.21 12.79 12.57 12.93 Corporate bonds Seasoned issues15 33 All industries 9.07 10.12 12.75 14.76 15.18 15.60 16.16 16.08 16.23 16.06 16.09 16.57 34 Aaa 8.73 9.63 11.94 13.75 14.38 14.89 15.49 15.50 15.61 15.30 15.35 15.85 35 Aa 8.92 9.94 12.50 14.41 14.79 15.42 15.95 15.81 15.98 15.77 15.89 16.47 36 A 9.12 10.20 12.89 15.08 15.36 15.76 16.36 16.25 16.40 16.29 16.23 16.70 37 Baa 9.49r 10.69 13.67 15.80 16.17 16.34 16.92 16.77 16.96 16.88 16.87 17.24 Aaa utility bonds16 38 8.96 10.03 12.74 14.76 16.30 17.21 17.55 17 62 16 87 16 79 39 Recently offered issues 8.97 10.02 12.70 14.81 15.73 16.82 17.33 17.50 17.52 16.92 17.18 17.75 MEMO: Dividend/price ratio17 40 Preferred stocks 8.25 9.07 10.57 12.23 12.43 12.63 13.01 12.92 13.09 12.91 13.07 13.06 41 Common stocks 5.28 5.46 5.25 5.03 5.18 5.16 5.69 5.44 5.68 5.67 5.83 5.81 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 of yields (to maturity or call) for all outstanding notes ending Wednesday. and bonds neither due nor callable in less than 10 years, including several very low 3. Unweighted average of offering rates quoted by at least five dealers (in the yielding "flower" bonds. case of commercial paper), or finance companies (in the case of finance paper). 13. General obligations only, based on figures for Thursday, from Moody's Before November 1979, maturities for data shown are 30-59 days, 90-119 days, Investors Service. and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150— 14. General obligations only, with 20 years to maturity, issued by 20 state and 179 days for finance paper. local governmental units of mixed quality. Based on figures for Thursday. 4. Yields are quoted on a bank-discount basis, rather than an investment yield 15. Daily figures from Moody's Investors Service. Based on yields to maturity basis (which would give a higher figure). on selected long-term bonds. 5. Dealer closing offered rates for top-rated banks. Most representative rate 16. Compilation of the Federal Reserve. Issues included are long-term (20 years (which may be, but need not be, the average of the rates quoted by the dealers). or more). New-issue yields are based on quotations on date of offering; those on 6. Unweighted average of offered rates quoted by at least five dealers early in recently offered issues (included only for first 4 weeks after termination of underthe day. writer price restrictions), on Friday close-of-business quotations. 7. Unweighted average of closing bid rates quoted by at least five dealers. 17. Standard and Poor's corporate series. Preferred stock ratio based on a sample 8. Rates are recorded in the week in which bills are issued. of ten issues: four public utilities, four industrials, one financial, and one trans- 9. Yields are based on closing bid prices quoted by at least five dealers. portation. Common stock ratios on the 500 stocks in the price index. 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

A28 Domestic Nonfinancial Statistics • October 1981 1.36 STOCK MARKET Selected Statistics 1981 T 11997788 11997799 11998800 Feb. Mar. Apr. May June July Aug. Sept. 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 73.52 76.46 77.60 76.28 76.80 74.98 75.24 68.37 2 Industrial 58.30 61.82 78.64 85.74 89.39 90.57 88.78 88.63 86.64 86.72 78.07 3 Transportation 43.25 45.20 60.52 72.76 77.09 80.63 76.78 76.71 74.42 73.27 63.67 4 Utility 39.23 36.46 37.35 37.59 37.78 38.34 38.27 39.23 38.90 40.22 38.17 5 Finance 56.74 58.65 64.28 68.48 72.82 74.59 74.65 79.79 74.97 73.76 69.38 6 Standard & Poor's Corporation (1941^43 = 10)' 96.11 107.94 118.71 128.40 133.19 134.43 131.73 132.28 129.13 129.63 118.27 7 American Stock Exchange (Aug. 31, 1973 = 100) 144.56 186.56 300.94 338.28 347.07 363.09 365.52 369.64 364.33 364.60 313.60 Volume of trading (thousands of shares) 8 New York Stock Exchange 28.591 32.233 44.867 42,963 53,387 54,124 45,272 50,517 43,930 44,489 46,042 9 American Stock Exchange 3,622 4,182 6.377 4.816 5,682 6,339 5,650 6,096 4,374 5,137 5,556 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokersdealers2 11,035 11,619 14,721 14,171 14,243 14,869 14,951 15,126 15,134 14,545 11 Margin stock3 10,830 11,450 14,500 13.950 14.020 14,630 14,700 14,870 14,870 14,270 12 Convertible bonds 205 167 219 220 222 238 251 254 263 274 13 Subscription issues 1 2 2 1 1 1 1 2 1 1 n a. Free credit balances at brokers4 14 Margin-account 835 1,105 2.105 2,225 2,340 2.270 2,345 2,350 2,670 2,645 15 Cash-account 2,510 4,060 6.070 5,700 6.530 6,440 6,150 6,650 6,470 6,640 Margin-account debt at brokers (percentage distribution, end of period) 16 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 TOO.O Bv equity class (in percent)5 17 Under 40 33.0 16.0 14.0 20.0 16.0 20.8 21.3 25.0 25.0 38.5 18 40-49 28.0 29.0 30.0 31.0 28.0 26.8 25.3 29.0 29.0 24.0 19 50-59 18.0 27.0 25.0 21.0 26.0 23.7 25.3 21.0 22.0 15.0 nn 20 60-69 10.0 14.0 14.0 13.0 14.0 12.6 12.7 11.0 11.0 10.0 21 70-79 6.0 8.0 9.0 8.0 9.0 8.1 8.0 7.0 7.0 6.0 55..00 77..00 88..00 7.0 8.0 8.0 8.0 7.0 6.0 66..00 F Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6 13,092 16,150 21,690 21,861 22,548 22,748 23,457 23,700 24,460 24,760 f Distribution by equity status (percent) 1 24 Net credit status 41.3 44.2 47.8 48.6 50.9 49.3 50.2 53.2 53.8 53.5 n.a. Debt status, equity of | 25 60 percent or more 45.1 47.0 44.4 43.1 41.5 41.7 41.0 38.4 37.9 37.0 i 26 Less than 60 percent 13.6 8.8 7.7 8.3 7.6 9.0 8.8 8.4 8.3 9.5 t Margin requirements (percent of market value and effective date)7 Mar. 11, 1968 June 8. 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 27 Margin stocks 70 80 65 55 65 50 28 Convertible bonds 50 60 50 50 50 50 29 Short sales 70 80 65 55 65 50 1. Effective July 1976, includes a new financial group, banks and insurance 5. Each customer's equity in his collateral (market value of collateral less net companies. With this change the index includes 400 industrial stocks (formerly debit balance) is expressed as a percentage of current collateral values. 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and 40 6. Balances that may be used by customers as the margin deposit required for financial. additional purchases. Balances may arise as transfers based on loan values of other 2. Margin credit includes all credit extended to purchase or carry stocks or related collateral in the customer's margin account or deposits of cash (usually sales proequity 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 in accounts with no unfulfilled commitments to the requirements are the difference between the market value (100 percent) and the brokers and are subject to withdrawal by customers on demand. maximum loan value. The term "margin stocks" is defined in the corresponding regulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Thrift Institutions A29 1.37 SAVINGS INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1980 1981 Account 1978 1979 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.P Savings and loan associations 1 Assets 523,542 578,962 623,939 629,829 631,228 634,405 636,859 639,827 644,603 646,704 648,793 651,799 7. Mortgages 432.808 475,688 499,973 502,812 504,068 505,309 507,152 509,525 511,754 514,803 516.527 517,581 3 Cash and investment securities1 44,884 46,341 57,302 57,572 57,460 58,401 58,461 56,886 59,045 57,616 57,453 58,534 4 Other 45,850 56,933 66,664 69,445 69,700 70,695 71,246 72,416 73,804 74,285 74,813 75,684 5 Liabilities and net worth 523,542 578,962 623,939 629,829 631,228 634,405 636,859 639,827 644,603 646,704 648,793 651,799 6 Savings capital 430,953 470,004 503,365 510,959 512,946 515,250 518,990 516,071 517,628 517,632 514,103 512,768 7 Borrowed money 42,907 55,232 62,067 64,491 62,938 62,270 64,197 67,704 70,025 74,756 79.554 83,145 8 FHLBB 31,990 40,441 45,505 47,045 46,629 46,360 47,310 49,607 51,064 53,836 57,188 6i ',050 9 Other 10,917 14,791 17,446 16.309 15,910 16,887 18,097 18,097 18,961 20,920 22,366 23,095 10 Loans in process 10,721 9,582 8,783 8,120 7,833 7,756 7,840 7,840 7,997 8,008 7,766 7,373 11 Other 9.904 11,506 16,433 12,227 14,104 16,071 13,271 14,946 17,089 14,756 16,365 17,995 12 Net worth2 29,057 32,638 33,221 33,319 33,120 32,981 32,645 32,266 31,864 31,552 31,005 17,224 13 MEMO: Mortgage loan commitments outstanding3 18,911 16,007 17,979 16.102 15,972 16.279 17,374 18,552 18,740 18,020 17,224 16,819 Mutual savings banks4 14 Assets 158,174 163,405 171,126 171,564 171,891 172,349 173,232 172,837 173,776 174,387 174,637 Loans 15 Mortgage 95,157 98,908 99,677 99,865 99,816 99.739 99,719 99,798 99,790 99,993 100,072 16 Other 7,195 9,253 11,477 11,733 12,199 12,598 13.248 12,756 13,375 14,403 14,378 Securities 17 U.S. government5 4,959 7,658 8,715 8,949 9,000 9,032 9.203 9,262 9,296 9,230 9,363 18 State and local government 3,333 2,930 2,736 2,390 2,378 2,376 2.359 2,314 2,328 2,337 2,297 19 Corporate and other6 39,732 37,086 39,888 39,282 39,256 39,223 39.236 39,247 39,111 38,418 38,425 70 Cash 3,665 3,156 3,717 4,334 4,133 4,205 4.238 4,172 4,513 4,473 4,654 21 Other assets 4,131 4.412 4,916 5,011 5,107 5,177 5.231 5,288 5,364 5,534 5,449 n a. 22 Liabilities 158,174 163,405 171,126 171,564 171,891 172,349 173,232 172,837 173,776 174,387 174,637 73 Deposits 142,701 146,006 152,133 153,501 153,143 153,332 154,805 153,692 153,891 154,926 153.797 74 Regular7 141,170 144,070 150.109 151,416 151,051 151,346 152.630 151,429 151,658 152,603 151.450 75 Ordinary savings 71,816 61,123 56,256 53,971 52,737 52,035 53,049 52,331 51,212 51,594 50,647 76 Time and other 69,354 82,947 93,853 97,445 98,314 99,311 99,581 99,098 100,447 101,009 100,803 77 Other 1,531 1,936 2,042 2,086 2,092 1,986 2.174 2,264 2,232 2,323 2,347 7.8 Other liabilities 4,565 5,873 7,644 6.695 7,426 7,753 7,265 8,103 8,922 8,634 10,179 29 General reserve accounts 10,907 11,525 11,349 11,368 12,957 13,412 11,163 11,042 10,923 10,827 10,661 30 MEMO: Mortgage loan commitments outstanding8 4,400 3,182 1,682 1,476 1,316 1,331 1,379 1,614 1,709 1,577 1,401 Life insurance companies 31 Assets 389,924 432,282 476,294 479,210 482,009 485,033 490,149 493,185 497,276 500,316 503,994 Securities 37 Government 20,009 0,338 21,275 21,871 22,246 22.669 22.775 22,603 22,948 23,415 23,691 33 United States9 4,822 4,888 5,351 5,838 6,429 6,774 6,807 6,502 6,787 7,119 7,359 34 State and local 6,402 6,428 6.571 6,701 6,571 6,145 6,199 6,809 6,815 6,876 6,865 35 Foreign1" 8,785 9,022 9,353 9,332 9,246 9,250 9,269 9,292 9,346 9,420 9,467 36 Business 198,105 222,332 239.537 238,059 240,959 241,675 243,996 245,841 247,437 248,737 250,186 n a. 37 Bonds 162,587 178,371 191.722 190,693 194,777 195,251 196.514 198,397 199,818 201,402 203,016 38 Stocks 35,518 39,757 47,815 47,366 46,182 46,424 47.482 47,444 47,619 47,335 41,170 39 Mortgages 106,167 118,421 129,813 131,080 131,710 132,567 133,230 133,896 134,492 135,318 135,928 40 Real estate 11,764 13,007 14,919 15,033 15,657 15,869 16.244 16,464 16,738 16,966 17.429 41 Policy loans 30,146 34,825 40,813 41,411 41,988 42.574 43,231 43,772 44,292 44,970 45,591 42 Other assets 23,733 27,563 29,937 31,702 29,449 29,679 30,673 30,609 31,369 30,910 31,169 Credit unions 43 Total assets/liabilities and capital 62,348 65,854 71,335 71,709 70,754 71,446 73,214 72,783 73,565 74,041 73,616 73,240 44 Federal 34,760 35,934 39,428 39,801 39,142 39.636 40,624 40,207 40,648 40,948 40,510 40,233 45 State 27,588 29,920 31,907 31,908 31,612 31,810 32,590 32,576 32,917 33,093 33.106 33,007 46 Loans outstanding 50,269 53,125 47,299 47.774 47.309 47,451 47,815 47,994 48,499 49,064 49,507 49,976 47 Federal 27,687 28,698 25,273 25,627 25,272 25,376 25,618 25,707 26,038 26,422 26,661 26,974 48 State 22,582 24,426 22,026 22,147 22,037 22,075 22,197 22,287 22,461 22,642 22,846 23,002 49 Savings 53,517 56,232 64,304 64,399 63,874 64,357 65,744 65,495 65,988 66,472 65,854 65,138 50 Federal (shares) 29,802 35,530 36,183 36,348 35,915 36,236 36,898 36,684 36,967 37,260 36,819 36,373 51 State (shares and deposits) 23,715 25,702 28,121 28,051 27,959 28,121 28,846 28,811 29,021 29,212 29,035 28,765 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • October 1981 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFiissccaall Fiscal FFiissccaall Type of account or operation yyeeaarr year yyeeaarr 11997788 1979 11998800 1980 1981 1981 HI H2 HI June July Aug. U.S. budget 1 Receipts' 401,997 465,940 520,050 270,864 262,152 318,899 70,688 48,142 47,976 2 Outlays1-2 450,804 493,635 579,613 289,905 310,972 334,710 55,619 58,486 53,095 3 Surplus, or deficit( -) -48,807 -27,694 -59,563 -19,041 -48,821 -15,811 15,070 -10,343 -5,119 4 Trust funds 12,693 18,335 8,791 4,383 -2,551 5,797 3,026 -3,506 310 5 Federal funds3 -61,532 -46,069 -67,752 -23,418 -46,306 -21,608 12,045 -6,838 -5,429 OOffff--bbuuddggeett eennttiittiieess ((ssuurrpplluuss,, oorr ddeeffiicciitt 66 FFeeddeerraall FFiinnaanncciinngg BBaannkk oouuttllaayyss -10,661 -13,261 -14,549 -7,735 -7,552 -11,046 -1,295 -2,429 -616 77 OOtthheerr44 302 793 303 -522 376 -900 45 -348 -418 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 13,820 -13,120 -6,153 Source or financing 9 Borrowing from the public 59,106 33,641 70,515 24,435 54,764 33,213 572 3,383 6,501 10 Cash and monetary assets (decrease, or increase (-)) -3,023 -408 -355 -3,482 -6,730 2,873 -15,121 5,570 1,330 11 Other6 3,083 6,929 3,648 6,345 7,964 -8,328 730 4,168 -1,678 MEMO; 12 Treasury operating balance (level, end of period) 222222,,,444444444 222444,,,111777666 222000,,,999999000 111444,,,000999222 111222,,,333000555 111666,,,333888999 111666,,,333888999 111111,,,333111888 555,,,777111444 111666,,,666444777 666,,,444888999 444,,,111000222 333,,,111999999 333,,,000666222 222,,,999222333 222,,,999222333 222,,,999222222 222,,,555999555 555,,,777999777 111777,,,666888777 111666,,,888888888 111000,,,888999333 999,,,222444333 111333,,,444666666 111333,,,444666666 888,,,333999666 333,,,111111999 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) and 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 Inassets." ternational Bank for Reconstruction and Development. 2. Includes net undistributed income, which is accrued by most, but not all, associations. NOTE. Savings and loan associations: Estimates by the FHLBB for all associations 3. Excludes figures for loans in process, which are shown as a liability. in the United States. Data are based on monthly reports of federally insured 4. The NAMSB reports that, effective April 1979, balance sheet data are not associations and annual reports of other associations. Even when revised, data for strictly comparable with previous months. Beginning April 1979, data are reported current and preceding year are subject to further revision. on a net-of-valuation-reserves basis. Prior to that date, data were reported on a Mutual savings banks: Estimates of National Association of Mutual Savings gross-of-valuation-reserves basis. Banks for all savings banks in the United States. 5. Beginning April 1979, includes obligations of U.S. government agencies. 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 A31 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS Millions of dollars Calendar year Fiscal Fiscal Fiscal SSoouurrccee oorr ttyyppee year year year 1980 1981 1981 1978 1979 1980 HI H2 HI June July Aug. RECEIPTS 1 All sources1 401,997 465,955 520,050 270,864 262,152 318,899 70,688 48,142 47,976 2 Individual income taxes, net 180,988 217,841 244,069 119,988 131,962 142,889 33,729 24,439 21,615 3 Withheld 165,215 195,295 223,763 110,394 120,924 126,101 23,000 23,963 21,150 4 Presidential Election Campaign Fund... 39 36 39 34 4 36 5 4 1 5 Nonwithheld 47,804 56,215 63,746 49,707 14,592 59,907 11,682 2,228 1,227 6 Refunds1 32,070 33,705 43,479 40,147 3,559 43,155 958 1,756 813 Corporation income taxes 7 Gross receipts 65,380 71,448 72,380 43,434 28,579 44,048 16,411 2,721 2,397 8 Refunds 55,,442288 55,,777711 77,,778800 4,064 4,518 6,565 618 1,007 790 9 Social insurance taxes and contributions, net 112233,,441100 114411,,559911 116600,,774477 86,597 7777,,226622 102,911 14,657 15,206 18,190 10 Payroll employment taxes and contributions2 9999,,662266 111155,,004411 113333,,004422 6699,,007777 6666,,883311 8833,,885511 1133,,330088 13,899 14,965 11 Self-employment taxes and contributions3 4,267 5,034 5,723 5,535 188 6,240 536 -723 0 12 Unemployment insurance 13,850 15,387 15,336 8,690 6,742 9,205 234 1,379 2,561 13 Other net receipts4 5,668 6,130 6,646 3,294 3,502 3,615 580 652 664 14 Excise taxes 18,376 18,745 24,329 11,383 15,332 21,945 4,224 3,997 4,052 15 Customs deposits 6,573 7,439 7,174 3,443 3,717 3,926 791 777 776 16 Estate and gift taxes 5,285 5,411 6,389 3,091 3,499 3,259 531 621 568 17 Miscellaneous receipts5 7,413 9,252 12,741 6,993 6,318 6,487 964 1,388 1,169 OUTLAYS 18 All types1-6 450,804 493,635 579,613 289,905 310,972 334,710 55,619 58,486 53,095 19 National defense 105,186 117,681 135,856 69,132 72,457 80,005 13,839 14,692 13,523 20 International affairs 5,922 6,091 10,733 4,602 5,430 5,999 1,373 378 785 21 General science, space, and technology ... 4,742 5,041 5,722 3,150 3,205 3,314 609 515 490 22 Energy 5,861 6,856 6,313 3,126 3,997 5,677 1,319 914 929 23 Natural resources and environment 10,925 12,091 13,812 6,668 7,722 6,476 1,140 1,164 1,194 24 Agriculture 7,731 6,238 4,762 3,193 1,892 3,101 274 -86 536 25 Commerce and housing credit 3,324 2,565 7,782 3,878 3,163 1,940 860 -52 292 26 Transportation 15,445 17,459 21,120 9,582 11,547 11,991 1,841 1,771 1,925 27 Community and regional development.... 11,039 9,482 10,068 5,302 5,370 4,621 928 677 618 28 Education, training, employment, social services 26,463 29,685 30,767 16,686 15,221 15,928 2,131 2,400 2,647 29 Health 43,676 49,614 58,165 29,299 31,263 34,708 6,123 6,141 5,838 30 Income security16 146,180 160,159 193,100 94,605 107,912 113,490 18,807 19,637 18,857 31 Veterans benefits and services 18,974 19,928 21,183 9,758 11,731 10,531 1,786 2,995 789 32 Administration of justice 3,802 4,153 4,570 2,291 2,299 2,344 388 386 397 33 General government 3,737 4,153 4,505 2,422 2,432 2,692 506 242 581 34 General-purpose fiscal assistance 9,601 8,372 8,584 3,940 4,191 3,015 44 1,234 28 35 Interest7 43,966 52,556 64,504 32,658 35,909 41,178 11,674 6,164 7,320 36 Undistributed offsetting receipts7,8 -15,772 -18,489 -21,933 -10,387 -14,769 -12,432 -8,023 -688 -3,652 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 receipts. SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. 6. 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

A32 Domestic Financial Statistics • October 1981 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1979 1980 1981 IItteemm June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 812.2 833.8 852.2 870.4 884.4 914.3 936.7 970.9 977.4 2 Public debt securities 804.9 826.5 845.1 863.5 877.6 907.7 930.2 964.5 971.2 3 Held by public 626.4 638.8 658.0 677.1 682.7 710.0 737.7 773.7 771.3 4 Held by agencies 178.5 187.7 187.1 186.3 194.9 197.7 192.5 190.9 199.9 5 Agency securities 7.3 7.2 7.1 7.0 6.8 6.6 6.5 6.4 6.2 6 Held by public 5.9 5.8 5.6 5.5 5.3 5.1 5.0 4.9 4.7 / 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 806.0 827.6 846.2 864.5 878.7 908.7 931.2 965.5 972.2 9 Public debt securities 804.3 825.9 844.5 862.8 877.0 907.1 929.6 963.9 970.6 10 Other debt1 1.7 1.7 1.7 1.7 1.7 1.6 1.6 1.6 1.6 11 MEMO: Statutory debt limit 830.0 830.0 879.0 879.0 925.0 925.0 935.1 985.0 985.0 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 TTyyppee aanndd hhoollddeerr 11997777 11997788 11997799 11998800 May June July Aug. Sept. 1 Total gross public debt 718.9 789.2 845.1 930.2 968.5 971.2 973.3 980.2 997.9 By type 2 Interest-bearing debt 715.2 782.4 844.0 928.9 964.8 969.9 972.1 978.9 996.5 3 Marketable 459.9 487.5 530.7 623.2 656.2 660.8 666.4 673.8 683.2 4 Bills 161.1 161.7 172.6 216.1 224.5 218.8 217.5 219.9 223.4 5 Notes 251.8 265.8 283.4 321.6 338.4 348.8 354.0 357.6 363.6 6 Bonds 47.0 60.0 74.7 85.4 93.3 93.2 94.9 96 3 96 ? 7 Nonmarketable1 255.3 294.8 313.2 305.7 308.6 309.2 305.6 305.2 313.3 8 Convertible bonds2 2.2 2.2 2.2 9 State and local government series 13.9 24.3 24.6 23.8 23.2 23.2 22.8 22.8 23.2 10 Foreign issues3 22.2 29.6 28.8 24.0 24.8 23.5 21.9 21.4 20.5 11 Government 21.0 28.0 23.6 17.6 18.4 17.1 16.3 15.7 15.5 12 Public 1.2 1.6 5.3 6.4 6.4 6.4 5.7 5.7 5.0 13 Savings bonds and notes 77.0 80.9 79.9 72.5 69.5 69.2 69.0 68 6 68.3 14 Government account series4 139.8 157.5 177.5 185.1 190.8 193.0 191.6 192.1 201.1 15 Non-interest-bearing debt 3.7 6.8 1.2 1.3 3.7 1.3 1.2 1.3 1.4 By holder5 16 U.S. government agencies and trust funds 154.8 170.0 187.1 192.5 197.8 199.9 198.6 17 Federal Reserve Banks 102.8 109.6 117.5 121.3 117.9 120.0 123.4 18 Private investors 461.3 508.6 540.5 616.4 652.3 651.2 651.3 19 Commercial banks 101.4 93.2r 96.4' 116.0' 113.2' 113.3' 114.2 20 Mutual savings banks 5.9 5.0 4.7' 5.4' 5.6' 5.7' 5.6 21 Insurance companies 15.1 15.7' 16.7' 20.1' 19.7' 18.3' 19.8 n a. n.a. 22 Other companies 20.5' 19.6' 22.9' 25.7' 38.8' 38.7' 37.8 23 State and local governments 55.2 64.4 69.9' 78.8' 85.1' 83.0' 76.0 Individuals 24 Savings bonds 76.7 80.7 79.9 72.5' 69.5 69.2 69.0 25 Other securities 28.6 30.3 36.2 56.7 70.3 70.4' 70.5 26 Foreign and international6 109.6 137.8 124.4' 127.7' 142.9' 143.3' 139.7 27 Other miscellaneous investors7 49.7' 58.9' 90.1' 106.9' 110.3' 111.4' 119.4 1. Includes (not shown separately): Securities issued to the Rural Electrification 5. Data for Federal Reserve Banks and U.S. government agencies and trust Administration, depository bonds, retirement plan bonds, and individual retire- funds are actual holdings: data for other groups are Treasury estimates. ment bonds. 6. Consists of investments of foreign balances and international accounts in the 2. These nonmarketable bonds, also known as Investment Series B Bonds, may United States. be exchanged (or converted) at the owner's option for l'/2 percent. 5-year mar- 7. Includes savings and loan associations, nonprofit institutions, corporate penketable Treasury notes. Convertible bonds that have been so exchanged are re- sion trust funds, dealers and brokers, certain government deposit accounts, and moved from this category and recorded in the notes category (line 5). government sponsored agencies. 3. Nonmarketable dollar-denominated and foreign currency-denominated series held by foreigners. NOTE. Gross public debt excludes guaranteed agency securities. 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 States (U.S. Treasury Department); data by holder from Treasury Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A33 1.42 U.S. GOVERNMENT MARKETABLE SECURITIES Ownership, by maturity Par value; millions of dollars, end of period 1981 1981 Tvnp nf hnldpr 11997799 11998800 11997799 11998800 June July June July All maturities 1 to 5 years 1 All holders 530,731 623,186 660,769 666,405 164,198 197,409 208,085 206,767 2 U.S. government agencies and trust funds 11,047 9,564 9,227 9,225 2,555 1,990 1,357 1,166 3 Federal Reserve Banks 117,458 121,328 120,017 123,402 8,469 35,835 33,928 34,659 4 Private investors 402,226 492,294 531,525 533,778 133,173 159,585 172,801 170,942 5 Commercial banks 69,076 77,868 77,764 78,396 38,346 44,482 40,578 41,463 6 Mutual savings banks 3,204 3,917 4,222 4,181 1,668 1,925 2,084 2,049 7 Insurance companies 11,496 11,930 11,852 12,726 4,518 4,504 4,929 4,919 8 Nonfinancial corporations 8,433 7,758 6,789 5,938 2,844 2,203 1,642 1,197 9 Savings and loan associations 3,209 4,225 4,438 4,214 1,763 2,289 2,430 2,481 10 State and local governments 15,735 21,058 22,604 23,602 3,487 4,595 5,282 5,023 11 All others 291,072 365,539 403,856 404,714 80,546 99,577 115,856 113,809 Total, within 1 year 5 to 10 years 12 All holders 255,252 297,385 310,922 312,707 50,440 56,037 61,485 64,934 13 U.S. government agencies and trust funds 1,629 830 1,119 1,307 871 1,404 1,411 1,411 14 Federal Reserve Banks 63,219 56,858 57,331 59,530 12,977 13,458 13,042 13,280 15 Private investors 190,403 239,697 252,471 251,870 36,592 41,175 47,033 50,242 16 Commercial banks 20,171 25,197 28,221 27,554 8,086 5,793 5,912 6,101 17 Mutual savings banks 836 1,246 1,377 1,334 459 455 417 425 18 Insurance companies 2,016 1,940 2,036 2,029 2,815 3,037 2,583 3,257 19 Nonfinancial corporations 4,933 4,281 3,192 3,019 308 357 383 391 20 Savings and loan associations 1,301 1,646 1,866 1,582 69 216 83 84 21 State and local governments 5,607 7,750 7,495 8,817 1,540 2,030 2,297 2,332 22 All others 155,539 197,636 208,285 207,535 24,314 29,287 35,358 37,653 Bills, within 1 year 10 to 20 years 23 All holders 172,644 216,104 218,786 217,532 27,588 36,854 39,899 39,866 24 U.S. government agencies and trust funds 0 1 1 1 4,520 3,686 3,685 3,685 25 Federal Reserve Banks 45,337 43,971 43,593 44,437 3,272 5,919 5,945 6,009 26 Private investors 127,306 172,132 175,192 173,094 19,796 27,250 30,268 30,172 27 Commercial banks 5,938 9,856 9,138 8,352 993 1,071 1,311 1,342 28 Mutual savings banks 262 394 449 354 127 181 195 192 29 Insurance companies 473 672 736 608 1,305 1,718 1,590 1,800 30 Nonfinancial corporations 2,793 2,363 1,197 1,333 218 431 758 798 31 Savings and loan associations 219 818 692 386 58 52 36 45 32 State and local governments 3,100 5,413 4,774 5,983 1,762 3,597 4,314 4,119 33 All others 114,522 152,616 158,206 156,079 15,332 20,200 22,064 21,877 Other, within 1 year Over 20 years 34 All holders 82,608 81,281 92,136 95,174 33,254 35,500 40,378 42,132 35 U.S. government agencies and trust funds 1,629 829 1,118 1,306 1,472 1,656 1,656 1,656 36 Federal Reserve Banks 17,882 12,888 13,738 15,093 9,520 9,258 9,770 9,924 37 Private investors 63,097 67,565 77,279 78,776 22,262 24,587 28,953 30,553 38 Commercial banks 14,233 15,341 19,083 19,202 1,470 1,325 1,742 1,935 39 Mutual savings banks 574 852 929 980 113 110 149 181 40 Insurance companies 1,543 1,268 1,299 1,421 842 730 714 721 41 Nonfinancial corporations 2,140 1,918 1,995 1,686 130 476 815 534 42 Savings and loan associations 1,081 828 1,174 1,196 19 21 22 22 43 State and local governments 2,508 2,337 2,721 2,833 3,339 3,086 3,216 3,319 44 All others 41,017 45,020 50,079 51,457 16,340 18,838 22,294 23,840 NOTE. Direct public issues only. Based on Treasury Survey of Ownership from and 724 insurance companies, each about 80 percent; (2) 408 nonfinancial cor- Treasury Bulletin (U.S. Treasury Department). porations and 473 savings and loan associations, each about 50 percent; and (3) Data complete for U.S. government agencies and trust funds and Federal Reserve 489 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 July 31,1981: (1) 5,334 commercial banks, 457 mutual savings banks, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 DomesticN onfinancial Statistics • October 1981 1.43 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1981 1981, week ending Wednesday IItteemm 11997788 11997799 11998800 June July Aug. Aug. 12 Aug. 19 Aug. 26 Sept. 2 Sept. 9 Sept. 16 p Immediate delivery1 1 U.S. government securities.. 10,285 13,183 23,195 21,615 23,901 26,241 20,011 23,604 25,147 22,193 25,221 By maturity 2 Bills 6,173 7,915 13,769 13,873 14,188 14,847 11,996 14,739 14,577 14,881 15,545 3 Other within 1 year 392 454 480 584 516 352 848 375 563 450 902 4 1-5 years 1,889 2,417 3,983 3,139 3,990 4,374 2,983 4,347 3,351 2,546 3,471 5 5-10 years 965 1,121 2,392 2,084 2,410 2,315 1,525 1,865 4,321 2,375 3,033 6 Over 10 years 867 1,276 2,571 1,937 2,797 4,353 2,659 2,278 2,336 1,942 2,221 By type of customer 7 U.S. government securities dealers 1,135 1,448 1,378 2,171 1,767 1,853 1,650 1,604 1,864 1,517 1,597 8 U.S. government securities brokers 3,838 5.170 n.a. 11,173 10,222 11,555 13,343 9,271 11,720 12,025 10,959 13,414 9 All others2 5,312 6,564 10,644 9,223 10,579 11,046 9,091 10,279 11,258 9,717 10,211 10 Federal agency securities.... 1,894 2,723 3,621 3,060 3,136 3,485 3,257 3,215 2,858 2,578 3,964 11 Certificates of deposit i 4,352 4,290 4,161 4,432 3,827 4,031 4,530 3,757 6,413 12 Bankers acceptances 1,822 1,655 1,420 1,564 1,109 1,272 1,570 1,344 1,978 13 Commercial paper 6,323 5,918 5,942 5,685 5,804 6,199 6,714 6,514 6,424 Futures transactions3 14 Treasury bills n.a. n.a. 3,359 3,893 3,619 3,519 3,721 3,716 3,722 3,280 4,249 15 Treasury coupons 904 1,160 1,337 1,138 901 1,367 1,534 1,766 1,664 16 Federal agency securities.... 197 143 237 216 243 227 147 78 125 Forward transactions4 17 U.S. government securities.. 227 369 612 1,110 380 377 637 445 228 18 Federal agency securities.... 1,377 911 1,123 1,744 694 720 1,313 1,420 2,056 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 dealchange 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 IItteemm 11997788 11997799 11998800 June July Aug. July 29 Aug. 5 Aug. 12 Aug. 19 Aug. 26 Sept. 2 Positions Net immediate1 1 U.S. government securities.... 2,656 3,223 8,975 6,270 6,635 6,104 5,048 7,210 6,722 7,147 6,791 2 Bills 2.452 3.813 5.713 2,953 4,322 2,741 2.985 4,215 4,711 5,021 4,417 3 Other within 1 year 260 -325 -487 -1,419 -2,181 -1,414 -1,972 -1,995 -2,227 -2,303 -2,598 4 1-5 years -92 -455 1.075 1,754 2,531 2,282 2,380 3,083 2,157 2,443 2,501 5 5-10 years 40 160 466 815 72 487 83 164 144 -172 466 6 Over 10 years -4 30 2,209 2,167 1,892 2,008 1,573 1,743 1.938 2,158 2,005 7 Federal agency securities 606 1,471 2.480 3,041 2,984 3,132 2,889 2,236 2.132 1,972 1,987 8 Certificates of deposit 2,775 2,794 n a. 3.947 4,880 3,925 4,391 4.811 4,754 3,920 3,149 3,214 9 Bankers acceptances 1 4 2.088 1,927 1,475 1,523 1,681 1,642 1,441 1,186 1,498 10 Commercial paper T T 3,061 2,309 2,171 2,099 2,477 2,263 1,991 1,998 22,,339977 11 Fu T tu re re a s p u o ry si t b io il n ls s 1 1 -9,723 -8,352 -9,939 -10,744 -7,667 -8,932 -10.809 -11,009 -11,106 12 Treasury coupons n.a. n.a. -2,448 -2,480 -2,598 -2,394 -2,248 -2,691 -2,650 -2,638 -2,551 13 Federal agency securities 1 1 -1,039 -946 -807 -887 -782 -733 -873 -719 -724 Forwards positions 1 1 4 5 U Fe . d S. e r g a o l v a e g r e n n m cy e n s t ec s u e r c it u i r es i ties.... t 1 t 1 -7 2 1 5 5 6 -52 9 3 1 - -2 5 0 0 6 9 -6 -6 8 0 3 - - 4 1 8 8 8 6 -2 -8 6 6 2 - - 2 52 7 5 4 - - 8 2 9 1 7 8 -6 -8 6 5 2 Financing2 Reverse repurchase agreements3 . 16 Overnight and continuing 12,193 15,371 16,087 16,464 15,617 16,176 16,151 16,494 17 Term agreements 29.785 29,519 29,414 29,230 29,348 29,438 29,086 29,808 Repurchase agreements4 18 Overnight and continuing 33,748 36,175 36,719 34,752 36.705 36,765 36,858 36,594 19 Term agreements 27.684 26,122 27,213 25,708 26.353 27,435 27,147 28,139 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A35 1.45 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1981 AAggeennccyy 11997788 11997799 11998800 Feb. Mar. Apr. May June July 1 Federal and federally sponsored agencies' 137,063 163,290 193,229 194,926 198,828 200,434 205,020 208,961 213,990 2 Federal agencies 23,488 24,715 28,606 28,596 29,397 29,502 29,311 29,945 29,978 3 Defense Department2 968 738 610 591 576 566 556 546 536 4 Export-Import Bank3-4 8,711 9,191 11,250 11,201 11,881 11,868 11,850 12,423 12,401 5 Federal Housing Administration5 588 537 477 468 464 459 449 448 443 6 Government National Mortgage Association participation certificates6 3,141 2,979 2,817 2,817 2,817 2,775 2,775 2,715 2,715 7 Postal Service7 2,364 1,837 1,770 1,770 1,770 1,770 1,538 1,538 1,538 8 Tennessee Valley Authority 7,460 8,997 11,190 11,550 11,680 11,845 11,930 12,060 12,130 9 United States Railway Association7 356 436 492 199 209 219 213 215 215 10 Federally sponsored agencies1 113,575 138,575 164,623 166,330 169,431 170,932 175,709 179,016 184,012 11 Federal Home Loan Banks 27,563 33,330 41,258 42,275 43,791 44,357 47,121 49,425 52,431 12 Federal Home Loan Mortgage Corporation 2,262 2,771 2,536 2,514 2,409 2,409 2,409 2,409 2,408 13 Federal National Mortgage Association 41,080 48,486 55,185 54,110 54,666 54,183 54,430 54,657 55,362 14 Federal Land Banks 20,360 16,006 12,365 11,507 11,507 10,583 10,583 10,583c 10,317 15 Federal Intermediate Credit Banks 11,469 2,676 1,821 1,388 1,388 1,388 1,388 l,388c 1,388 16 Banks for Cooperatives 4,843 584 584 584 584 220 220 220c 220 17 Farm Credit Banks1 5,081 33,216 48,153 50,675 51,689 54,345 56,061 56,932 57,784 18 Student Loan Marketing Association8 915 1,505 2,720 3,275 3,395 3,445 3,495 3,400 4,100 19 Other 2 1 1 2 2 2 2 2 2 MEMO: 20 Federal Financing Bank debt1,9 51,298 67,383 87,460 89,444 94,101 96,489 98,297 100,333 102,853 Lending to federal and federally sponsored 21 Export-Import Bank4 6,898 8,353 10,654 10,654 11,346 11,346 11,346 11,933 11,933 22 Postal Service7 2,114 1,587 1,520 1,520 1,520 1,520 1,288 1,288 1,288 23 Student Loan Marketing Association8 915 1,505 2,720 3,275 3,395 3,445 3,495 3,400 3,800 24 Tennessee Valley Authority 5,635 7,272 9,465 9,825 9,955 10,120 10,205 10,335 10,405 25 United States Railway Association7 356 436 492 199 209 219 213 215 215 Other Lending10 26 Farmers Home Administration 23,825 32,050 39,431 39,851 41,791 43,456 44,746 45,691 47,396 27 Rural Electrification Administration 4,604 6,484 9,196 10,212 10,443 10,652 10,988 11,346 11,604 28 Other 6,951 9.696 13,982 13,908 15,442 15,731 16,016 16,125c 16,212 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 Asbonds 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 particcurities 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 trailing 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

A36 Domestic Nonfinancial Statistics • October 1981 1.46 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1981 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11997788 11997799 11998800 Feb.r Mar.r Apr.r Mayr Juner July 1 All issues, new and refunding' 48,607 43,490 48,462 2,986 3,968 5,224 3,513 4,891 3,177 Tvpe of issue 2 General obligation 17,854 12,109 14,100 884 1,263 1,350 1,321 1,382 1,059 3 Revenue 30.658 31,256 34,267 2,099 2,694 3.868 2.182 33,,550044 22,,111133 5 U.S. government loans 95 125 95 3 11 6 10 5 5 Tvpe of issuer 6 State 6,632 4,314 5,304 530 349 544 639 585 353 7 Special district and statutory authority 24,156 23,434 26,972 1.471 2,004 2,803 1,703 2,742 1,727 8 Municipalities, counties, townships, school districts 17,718 15,617 16,090 981 1.604 1.871 1,161 1,558 1,091 9 Issues for new capital, total 37,629 41,505 46,736 2,913 3,935 5,044 3,500 4,811 3,161 Use of proceeds 10 Education 5.003 5,130 4.572 305 522 497 231 617 254 11 Transportation 3,460 2,441 2,621 322 239 137 427 159 537 12 Utilities and conservation 9,026 8.594 8.149 460 797 1,278 665 758 877 13 Social welfare 10,494 15.968 19.958 887 980 1,038 1,069 1,409 707 14 Industrial aid 3,526 3.836 3,974 320 547 1.343 455 745 363 15 Other purposes 6,120 5,536 7.462 619 850 751 653 1.123 423 1. Par amounts of long-term issues based on date of sale. SOURCE. Public Securities Association. 2. Only bonds sold pursuant to the 1949 Housing Act, which are secured by contract requiring the Housing Assistance Administration to make annual contributions to the local authority. 1.47 NEW SECURITY ISSUES of Corporations Millions of dollars 1981 Type of issue or issuer, or use 11997788 11997799 11998800 Jan. Feb. Mar. Apr. May June July 1 All issues' 47,230 51,533 73,688 5,581 4,157 6,423 6,835 5,457 9,536 4,013 2 Bonds 36,872 40,208 53,199 3,386 2,834 4,275 4,597 3,080 5,601 2,256 Tvpe of offering 3 Public 19,815 25,814 41.587 2,928 2,408 3,778 3.668 2.520 4,603 1,925 4 Private placement 17,057 14,394 11.612 458 426 497 929 560 998 331 Industry group 5 Manufacturing 9,572 9,678 15.409 1.635 1,140 1,064 1,459 1.269 1.313 497 6 Commercial and miscellaneous. 5,246 3,948 6.688 231 356 212 342 138 566 206 7 Transportation 2,007 3.119 3.329 353 45 172 142 49 584 131 8 Public utility 7,092 8.153 9.556 800 593 594 904 1,063 996 383 9 Communication 3,373 4.219 6.683 62 272 958 554 56 470 767 10 Real estate and financial 9,586 11,094 11.534 306 430 1,276 1,197 506 1,672 273 11 Stocks 10,358 11,325 20,490 2,195 1,323 2,148 2,238 2,377 3,935 1,757 Type 12 Preferred 2,832 3,574 3.632 364 149 298 85 164 188 67 13 Common 7,526 7,751 16.858 1.831 1,174 1,850 2,153 2,213 3,747 1,690 Industry group 14 Manufacturing 1,241 1.679 4.839 609 204 735 531 903 382 335 15 Commercial and miscellaneous. 1.816 2.623 5.245 603 589 816 477 958 1,024 437 16 Transportation 263 255 549 124 81 17 146 47 18 29 17 Public utility 5,140 5.171 6.230 562 260 414 717 173 843 308 18 Communication 264 303 567 14 31 56 1,036 73 19 Real estate and financial 1,631 12,931 3.059 284 159 167 310 296 632 574 1. Figures, which represent gross proceeds of issues maturing in more than one 1933, employee stock plans, investment companies other than closed-end. intrayear, sold for cash in the United States, are principal amount or number of units corporate transactions, and sales to foreigners. multiplied by offering price. Excludes offerings of less than $100,000, secondary offerings, undefined or exempted issues as defined in the Securities Act of SOURCE. Securities and Exchange Commission. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A37 1.48 OPEN-END INVESTMENT COMPANIES Net Sales and Asset Position Millions of dollars 1981 IItteemm 11997799 119988((11 Jan. Feb. Mar. Apr. May June July' Aug. INVESTMENT COMPANIES' 1 Sales of own shares2 7,495 15.266 1.676 1,347 1.696 2,000 1.785 1,910 1.639 1,457 2 Redemptions of own shares1 8,393 12.012 1.193 960 1,112 1,594 1,250 1,512 1,297 1.422 3 Net sales -898 3,254 483 387 584 406 535 398 342 35 4 Assets4 49,277 58,400 56,160 56,452 59,146 58,531 60,081 58,887 57,494 54,221 5 Cash position5 4,983 5,321 4.636 4.882 4,971 5.099 5,448 5,199 51,109 5,058 6 Other 44,294 53,079 51.524 51,570 54,175 53,432 54,633 53,688 52,385 49,163 1. Excluding money market funds. 5. Also includes all U.S. government securities and other short-term debt se- 2. Includes reinvestment of investment income dividends. Excludes reinvestment curities. of capital gains distributions and share issue of conversions from one fund to another in the same group. NOTE. Investment Company Institute data based on reports of members, which 3. Excludes share redemption resulting from conversions from one fund to an- comprise substantially all open-end investment companies registered with the Seother in the same group. curities and Exchange Commission. Data reflect newly formed companies after 4. Market value at end of period, less current liabilities. their initial offering of securities. 1.49 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data are at seasonally adjusted annual rates. 1979 1980 1981 AAccccoouunntt 11997788 11997799 11998800 04 01 Q2 03 04 Q1 Q2 1 Corporate profits with inventory valuation and capital consumption adjustment 185.5 196.8 182.7 189.4 200.2 169.3 177.9 183.3 203.0 190.3 ? Profits before tax 223.3 255.3 245.5 255.4 277.1 217.9 237.6 249.5 257.0 229.0 3 Profits tax liability 82.9 87.6 82.3 87.2 94.2 71.5 78.5 85.2 87.7 76.4 4 Profits after tax 140.3 167.7 163.2 168.2 182.9 146.4 159.1 164.3 169.2' 152.7 5 Dividends 44.6 50.1 56.0 51.6 53.9 55.7 56.7 57.7 59.6 62.0 6 Undistributed profits 95.7 117.6 107.2 116.6 129.0 90.7 102.4 106.6 109.6' 90.6 7 Inventory valuation -24.3 -42.6 -45.6 -50.8 -61.4 -31.1 -41.7 -48.4 -39.2 -24.0 8 Capital consumption adjustment -13.5 -15.9 -17.2 - 15.1 -15.4 -17.6 - 17.9 -17.8 -14.7 - 14.7 SOURCE. Survey of Current Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • October 1981 1.50 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1980 1981 AAccccoouunntt 11997755 11997766 11997777 11997788 11997799 Q1 Q2 Q3 Q4 Q1 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 IInndduussttrryy 11997799 11998800 1199881111 02 Q3 Q4 Q1 Q21 Q31 Q41 1 Total nonfarm business 270.46 295.63 321.50 294.36 296.23 299.58 312.24 316.73 322.96 332.69 Manufacturing 2 Durable goods industries 51.07 58.91 62.92 59.38 58.19 59.77 61.24 63.10 63.07 64.06 3 Nondurable goods industries 47.61 56.90 63.87 56.32 58.21 58.86 63.27 62.40 65.65 64.05 Nonmanufacturing 4 Mining 1111..3388 13.51 16.47 12.81 13.86 15.28 16.20 16.80 16.12 16.70 Transportation 5 Railroad 4.03 4.25 4.43 4.06 3.98 4.54 4.23 4.38 4.22 4.84 6 Air 4.01 4.01 3.60 4.27 4.06 3.77 3.85 3.29 2.84 4.44 7 Other 4.31 3.82 4.12 3.76 4.18 3.39 3.66 4.04 4.00 4.60 Public utilities 8 Electric 27.65 28.12 28.12 27.91 28.14 27.54 27.69 29.32 29.41 28.84 9 Gas and other 6.31 7.32 8.07 7.12 7.44 7.41 8.36 8.53 7.38 8.16 10 Trade and services 79.26 81.79 87.30 81.07 81.19 82.91 83.43 85.88 86.55 92.68 11 Communication and other2 34.83 36.99 41.89 37.66 36.97 36.11 40.32 39.02 43.70 44.31 1. Anticipated by business. SOURCE. Survey of Current Business (U.S. Dept. of Commerce). 2. "Other" consists of construction; social services and membership organizations; and forestry, fisheries, and agricultural services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Corporate Finance A39 1.52 DOMESTIC FINANCE COMPANIES Assets and Liabilities Billions of dollars, end of period 1980 1981 AAccccoouunntt 11997755 11997766 11997777 11997788 11997799 Q2 Q3 Q4 Q1 02 ASSETS Accounts receivable, gross 1 Consumer 36.0 38.6 44.0 52.6 65.7 70.2 71.7 73.6 76.1 79.0 2 Business 39.3 44.7 55.2 63.3 70.3 70.3 66.9 72.3 72.7 78.2 3 Total 75.3 83.4 99.2 116.0 136.0 140.4 138.6 145.9 148.7 157.2 4 LESS: Reserves for unearned income and losses.... 9.4 10.5 12.7 15.6 20.0 21.4 22.3 23.3 24.3 25.7 5 Accounts receivable, net 65.9 72.9 86.5 100.4 116.0 119.0 116.3 122.6 124.5 131.4 6 Cash and bank deposits 2.9 2.6 2.6 3.5 7 Securities 1.0 1.1 .9 1.3 2244..9911 26.1 28.3 27.5 30.8 31.6 8 All other 11.8 12.6 14.3 17.3 9 Total assets 81.6 89.2 104.3 122.4 140.9 145.1 144.7 150.1 155.3 163.0 LIABILITIES 10 Bank loans 8.0 6.3 5.9 6.5 8.5 10.1 10.1 13.2 13.1 14.4 11 Commercial paper 22.2 23.7 29.6 34.5 43.3 40.7 40.5 43.4 44.2 49.0 12 Short-term, n.e.c 4.5 5.4 6.2 8.1 8.2 7.9 7.7 7.5 8.2 8.5 13 Long-term, n.e.c 27.6 32.3 36.0 43.6 46.7 50.5 52.0 52.4 51.6 52.6 14 Other 6.8 8.1 11.5 12.6 14.2 16.0 14.6 14.3 17.3 17.0 15 Capital, surplus, and undivided profits 12.5 13.4 15.1 17.2 19.9 19.9 19.8 19.4 20.9 21.5 16 Total liabilities and capital 81.6 89.2 104.3 122.4 140.9 145.1 144.7 150.1 155.3 163.0 1. Beginning Q1 1979, asset items on lines 6. 7, and 8 are combined. NOTE. Components may not add to totals due to rounding. 1.53 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted Changes in accounts Extensions Repayments AAAccccccooouuunnntttsss receivable rrreeeccceeeiiivvvaaabbbllleee TTTyyypppeee ooouuutttssstttaaannndddiiinnnggg JJJuuulllyyy 333111,,, 1981 1981 1981 111999888111111 May June July May June July May June July 1 Total 78,431 1,813 1,850 1,213 18,983 19,502 19,419 17,170 17,652 18,206 2 Retail automotive (commercial vehicles) 11,296 -152 -217 -128 830 734 838 982 951 966 3 Wholesale automotive 13,613 682 1,085 588 5,426 6,267 5,657 4.744 5,182 5,069 4 Retail paper on business, industrial and farm equipment 25.858 608 456 539 1.595 1.774 1,523 987 1,318 984 5 Loans on commercial accounts receivable and factored commercial accounts receivable 8,517 488 180 -97 8,696 8.267 8.824 8.208 8,087 8,921 6 All other business credit 19,147 187 346 311 2,436 2,460 2.577 2,249 2.114 2,266 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 DomesticN onfinancial Statistics • October 1981 1.54 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1981 Item 1978 1979 1980 Feb. Mar. Apr. May June July Aug. 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 83.4 90.3 90.9 88.5 88.9 94.1 97.0 95.2 2 Amount of loan (thousands of dollars) 45.9 53.3 59.2 65.6 64.5 64.1 65.5 66.8 67.7 69.4 3 Loan/price ratio (percent) 75.3 73.9 73.2 75.6 73.9 74.7 76.7 72.6 73.9 74.8 4 Matunty (years) 28.0 28.5 28.2 29.0 28.7 28.6 28.5 27.5 28.3 27.0 5 Fees and charges (percent of loan amount)2 ... 1.39 1.66 2.09 2.59 2.64 2.61 2.60 2.50 2.73 2.79 6 Contract rate (percent per annum) 9.30 10.48 12.25 13.02 13.48 13.62 13.56 14.12 14.14 14.64 Yield (percent per annum) 7 FHLBB series3 9.54 10.77 12.65 13.54 14.02 14.15 14.10 14.67 14.72 15.27 8 HUD series4 9.68 11.15 13.95 15.10 15.25 15.70 16.35 16.40 16.70 17.50 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 9.70 10.87 13.42 14.79 15.04 15.91 16.03 16.31 16.76 17.% 10 GNMA securities6 8.98 10.22 12.55 14.13c 14.22 14.69 15.31 15.02 15.76 16.67 FNMA auctions7 11 Government-underwritten loans 9.77 11.17 14.11 15.24 15.64 16.54 16.93 16.17 16.65 17.63 12 Conventional loans 10.01 11.77 14.43 15.05 15.29 15.66 16.44 16.30 16.44 17.59 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 39,032 46,050 55,104' 57,434 57,362 57,436 57,586 57,657 57,979' 58,722 1 1 4 5 FHA-insured 29,941 33,673 37,3648 38,972 38,878 38,919 39,030 38,988 39,108 39,368 16 Conventional 9,091 14,377 17,724' 18,462 18,484 18,517 18,557 18,669 18,870 19,354 Mortgage transactions (during period) 17 Purchases 12,301' 10,812' 8,099' 161 87 206 283 247 627 944 18 Sales 9 0 0 0 0 1 0 0 0 0 Mortgage commitments9 19 Contracted (during period) 18,959 10,179 8,083' 244 320' 383 802 1,110 1,662 1,394 20 Outstanding (end or period) 9,185 6,409 3,278 2,683 2,173 2,031 2,328 3,103 4,039 4,399 Auction of 4-month commitments to buy Government-underwritten loans 21 Offered 12,978.1 8,860.4 8,605.4 154.2 169.0 139.1 204.8 237.6 331.9 689.5 22 Accepted 6,747.2 3,920.9 4,002.0 87.7 69.0 114.5 179.1 127.1 290.4 336.6 Conventional loans 23 Offered 9,933.0 4,495.3 3,639.2 108.6 104.0 126.9 281.3 307.1 306.6 862.2 24 Accepted 5,110.9 2,343.6 1,748.5 79.1 62.0 92.0 155.9 224.0 238.2 304.3 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)10 2S Total 2,810' 3,543' 4,362' 5,107 5,161 5,176 5,223 5,257 5,250 5,294 26 FHA/VA 1,847' 1,995' 2,116' 2,223' 2,229' 2,224' 2,235' 2,241' 2,233' 2,238 27 Conventional 963' 1,549' 2,246' 2,883 2,931 2,952 2,988 3,016 3,017 3,056 Mortgage transactions (during period) 28 Purchases 6,525 5,717 3,723 179 148 125 480 139 242 101 29 Sales 6,211 4,544 2,527 94 127 97 422 94 238 44 Mortgage commitments11 30 Contracted (during period) 7,451 5,542 3,859 90 475 118 130 293 866 386 31 Outstanding (end of period) 1,410 797 447 394 699 678 322 1,018 824 1,028 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 servor 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 adondary 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 A41 1.55 MORTGAGE DEBT OUTSTANDING Millions of dollars, end of period 1980 1981 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11997788 11997799 11998800 Q2 Q3 Q4 Q1 Q2' 1 All holders 1,169,412 1,326,750 1,451,840 1,380,928 1,414,881 1,451,841 1,473,435 r 1,503,767 2 1- to 4-family 765,217 878,931 960,422 910,286 935,393 960,408 973,176' 992,030 3 Multifamily 121,138 128,852 136,580 132,194 134,193 136,601 137,993' 139,816 4 Commercial 211,851 236,451 258,338 247,444 251,651 258,332 262,375' 267,950 5 Farm 71,206 82,516 96,500 91,004 93,644 96,500 99,891' 103,971 6 Major financial institutions 848,177 938,567 998,386 958,750 977,281 998,372 1,008,204' 1,024,618 7 Commercial banks1 214,045 245,187 264,602 253,103 258,003 264,602 268,102 274,503 8 1- to 4-family 129,167 149,460 160,746 153,753 156,737 160,746 162,872 166,761 9 Multifamily 10,266 11,180 12,304 11,764 11,997 12,304 12,467 12,764 10 Commercial 66,115 75,957 82,688 79,110 80,626 82,688 83,782 85,782 11 Farm 8,497 8,590 8,864 8,476 8,643 8,864 8,981 9,196 12 Mutual savings banks 95,157 98,908 99,827 99,150 99,8306 99,813 99,719 99,993 13 1- to 4-family 62,252 64,706 65,307 64,864 64,966 65,297 65,236 65,415 14 Multifamily 16,529 17,340 17,180 17,223 17,249 17,338 17,321 17,369 15 Commercial 16,319 16,963 17,120 17,004 17,031 17,118 17,102 17,149 16 Farm 57 59 60 59 60 60 60 60 17 Savings and loan associations 432,808 475,688 502,812 481,042 491,895 502,812 507,152 514,803 18 1- to 4-family 356,114 394,345 419,446 399,746 409,896 419,446 423,066 429,449 19 Multifamily 36,053 37,579 38,113 37,329 37,728 38,113 38,442 39,022 20 Commercial 40,461 43,764 45,253 43,967 44,271 45,253 45,644 46,332 21 Life insurance companies 106,167 118,784 131,145 125,455 128,077 131,145 133,231' 135,319 22 1- to 4-family 14,436 16,193 17,911 17,796 17,996 17,911 17,847' 17,646 23 Multifamily 19,000 19,274 19,614 19,284 19,357 19,614 19,579' 19,603 24 Commercial 62,232 71,137 80,776 75,693 77,995 80,776 82,839' 85,038 25 Farm 10,499 12,180 12,844 12,682 12,729 12,844 12,966' 13,032 26 Federal and related agencies 81,739 97,084 114,300 108,539 110,526 114,300 116,243 119,987 27 Government National Mortgage Association 3,509 3,852 4,642 4,466 4,389 4,642 4,826 4,955 28 1- to 4-family 877 763 704 736 719 704 696 699 29 Multifamily 2,632 3,089 3,938 3,730 3,670 3,938 4,130 4,256 30 Farmers Home Administration 926 1,274 3,492 3,375 3,525 3,492 2,837 3,595 31 1- to 4-family 288 417 916 1,383 978 916 1,321 1,565 32 Multifamily 320 71 610 636 774 610 528 489 33 Commercial 101 174 411 402 370 411 479 576 34 Farm 217 612 1,555 954 1,403 1,555 509 965 35 Federal Housing and Veterans Administration 5,305 5,555 5,640 5,691 5,600 5,640 5,799 5,830 36 1- to 4-family 1,673 1,955 2,051 2,085 1,986 2,051 2,135 2,158 37 Multifamily 3,632 3,600 3,589 3,606 3,614 3,589 3,664 3,672 38 Federal National Mortgage Association 43,311 51,091 57,327 55,419 55,632 57,327 57,362 57,657 39 1- to 4-family 37,579 45,488 51,775 49,837 50,071 51,775 51,842 52,181 40 Multifamily 5,732 5,603 5,552 5,582 5,561 5,552 5,520 5,476 41 Federal Land Banks 25,624 31,277 38,131 35,574 36,837 38,131 40,258 42,693 42 1- to 4-family 927 1,552 2,099 1,893 1,985 2,099 2,228 2,401 43 Farm 24,697 29,725 36,032 33,681 34,852 36,032 38,030 40,292 44 Federal Home Loan Mortgage Corporation 3,064 4,035 5,068 4,014 4,543 5,068 5,161 5,257 45 1- to 4-family 2,407 3,059 3,873 3,037 3,459 3,873 3,953 4,025 46 Multifamily 657 976 1,195 977 1,084 1,195 1,208 1,232 47 Mortgage pools or trusts2 88,633 119,278 142,258 129,647 136,583 142,258 147,246 151,374 48 Government National Mortgage Association 54,347 76,401 93,874 84,282 89,452 93,874 97,184 100,558 49 1- to 4-family 52,732 74,546 91,602 82,208 87,276 91,602 94,810 98,102 50 Multifamily 1,615 1,855 2,272 2,074 2,176 2,272 2,374 2,456 51 Federal Home Loan Mortgage Corporation 11,892 15,180 16,854 16,120 16,659 16,854 17,067 17,565 52 1- to 4-family 9,657 12,149 13,471 12,886 13,318 13,471 13,641 14,115 53 Multifamily 2,235 3,031 3,383 3,234 3,341 3,383 3,426 3,450 54 Fanners Home Administration 22,394 27,697 31,530 29,245 30,472 31,530 32,995 33,251 55 1- to 4-family 13,400 14,884 16,683 15,224 16,226 16,683 16,640 16,750 56 Multifamily 1,116 2,163 2,612 2,159 2,235 2,612 2,853 3,072 57 Commercial 3,560 4,328 5,271 4,763 5,059 5,271 5,382 5,531 58 Farm 4,318 6,322 6,964 7,099 6,952 6,964 8,120 7,898 59 Individual and others3 150,863 171,821 196,896 183,992 190,491 196,911 201,742 207,788 60 1- to 4-family 83,708 99,414 113,838 104,838 109,780 113,834 116,889 120,763 61 Multifamily 21,351 23,251 26,058 24,596 25,407 26,081 26,481 26,955 62 Commercial 22,883 24,128 26,819 26,505 26,299 26,815 27,147 27,542 63 Farm 22,921 25,028 30,181 28,053 29,005 30,181 31,225 32,528 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

A42 Domestic Nonfinancial Statistics • October 1981 1.56 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change A Millions of dollars 1981 Holder and tvne of credit 11997788 11997799 11998800 Feb. Mar. Apr. May June July Aug. Amounts outstanding (end of period) 1 Total 273,645 312,024 313,435 309,188 310,766 313,419 315,465 318,459 320,886 324,653 Bv major holder 2 Commercial banks 136.016 154.177 145,765 142,030 141,897 142,070 142,143 143,310 144,020 144,769 3 Finance companies ...-. 54,298 68.318 76,756 78,090 79.490 81.033 81.794 82,723 83,924 86.152 4 Credit unions 44,334 46.517 44,041 43,776 44,212 44,390 45,055 45,686 46,096 46.605 5 Retailers2 25,987 28.119 29,410 27,329 26,965 27,227 27,319 27,412 27,469 27.494 6 Savings and loans 7,097 8.424 9,911 10.173 10.458 10,792 11,148 11,115 10,959 11.125 7 Gasoline companies 3,220 3.729 4,717 4,958 4,898 5,046 5,157 5,364 5,597 5,716 8 Mutual savings banks 2,693 2.740 2,835 2,832 2.846 2,861 2.849 2.849 2,821 2.792 Bv major type of credit 9 Automobile 101,647 116.362 116,327 115.677 117,517 118,479 118,932 119,685 121,002 123.219 10 Commercial banks 60,510 67,367 61,025 59,061 59.378 59,252 59,169 59.192 59,434 59.485 11 Indirect paper 33,850 38.338 34,857 33.667 34.016 33,931 33,913 33.996 34,270 34.501 12 Direct loans 26,660 29.029 26,168 25,394 25.362 25,321 25.256 25.196 25,164 24.984 13 Credit unions 21,200 22,244 21,060 20,933 21.142 21,227 21,545 21,847 22,044 22,286 14 Finance companies 19,937 26,751 34,242 35,683 36.997 38,000 38.218 38,646 39,525 41,448 15 Revolving 48,309 56.937 59.862 57,566 56.831 57.322 57,524 58,470 58,976 59.745 16 Commercial banks 24,341 29.862 30,001 29,412 29.051 29,127 29,096 29,722 29,923 30.530 17 Retailers 20.748 23.346 25,144 23,196 22,882 23,149 23,271 23,384 23,456 23,499 18 Gasoline companies 3,220 3.729 4,717 4.958 4,898 5,046 5.157 5.364 5,597 5.716 19 Mobile home 15,235 16.838 17,327 17.189 17,273 17,422 17.626 17.724 17,784 17,988 20 Commercial banks 9,545 10.647 10,376 10.174 10,153 10,142 10,159 10,179 10,192 10.242 21 Finance companies 3,152 3.390 3,745 3,740 3,762 3.828 3,909 3,990 4,076 4,178 22 Savings and loans 2,067 2.307 2,737 2,809 2,888 2,980 3.079 3.069 3,026 3,072 23 Credit unions 471 494 469 466 470 472 479 486 490 496 24 Other 108,454 121.887 119,919 118.756 119,145 120,196 121,383 122.580 123,124 123.701 25 Commercial banks 41,620 46.301 44,363 43.383 43,315 43,549 43,719 44,217 44,471 44.512 26 Finance companies 31,209 38.177 38.769 38,667 38,731 39,205 39,667 40,087 40,323 40.526 27 Credit unions 22,663 23.779 22.512 22,377 22,600 22,691 23,031 23,353 23,563 23.823 28 Retailers 5.239 4.773 4,266 4.133 4,083 4,078 4,048 4,028 4,013 3.995 29 Savings and loans 5.030 6.117 7,174 7.364 7,570 7,812 8,069 8,046 7,933 8.053 30 Mutual savings banks 2,693 2.740 2,835 2.832 2.846 2,861 2,849 2,849 2,821 2.792 Net change (during period)3 31 Total 43,079 38,381 1,410 1,996 3,108 2,331 1,346 1,930 1,954 2,859 Bv major holder 32 Commercial banks 23.641 18,161 -8,412 -544 612 -345 -14 614 432 185 33 Finance companies 9,430 14.020 8,438 1,530 1,539 1,253 409 570 948 2,383 34 Credit unions 6,729 2,185 -2,475 444 287 272 391 219 532 245 35 Retailers2 2,497 2.132 1,291 103 253 531 -3 416 265 -13 36 Savings and loans 7 1.327 1,485 254 418 421 519 45 -175 42 37 Gasoline companies 257 509 988 209 -6 141 67 78 4 33 38 Mutual savings banks 518 47 95 0 5 58 -23 -12 -52 -16 Bv major type of credit 39 Automobile 1188,,773366 14.715 --3355 979 1.682 428 -195 57 1,208 2,115 40 Commercial banks 10,933 6.857 -6,342 -346 229 -461 -208 -214 199 -91 41 Indirect paper 6,471 4.488 -3,481 -229 268 -256 -83 -44 274 159 42 Direct loans 4,462 2.369 -2,861 -117 -39 -205 -125 -170 -75 -250 43 Credit unions 3,101 1.044 -1,184 211 132 142 160 106 263 106 44 Finance companies 4,702 6.814 7,491 1.114 1,321 747 -147 165 746 2,100 45 Revolving 9,035 8.628 2,925 441 587 838 350 1,018 477 491 46 Commercial banks 5,967 5.521 139 166 346 153 230 580 156 440 47 Retailers 2,811 2.598 1,798 66 247 544 53 360 317 18 48 Gasoline companies 257 509 988 209 -6 141 67 78 4 33 49 Mobile home 286 1.603 488 -47 88 145 243 89 67 176 50 Commercial banks 419 1.102 -271 -102 -35 -15 7 -12 20 44 51 Finance companies 74 238 355 18 25 58 78 85 81 93 52 Savings and loans -276 240 430 31 97 99 152 14 -44 37 53 Credit unions 69 23 -25 6 1 3 6 2 10 2 54 Other 15,022 13,435 -1,968 623 751 920 948 766 202 77 55 Commercial banks 6,322 4.681 -1,938 -262 72 -22 -43 260 57 -208 56 Finance companies 4,654 6.968 592 398 193 448 478 320 121 190 57 Credit unions 3,559 1.118 -1,266 227 154 127 225 111 259 137 58 Retailers -314 -466 -507 37 6 -13 -56 56 -52 -31 59 Savings and loans 283 1.087 1,056 223 321 322 367 31 -131 5 60 Mutual savings banks 518 47 95 0 5 58 -23 -12 -52 -16 1. The Board's series cover most short- and intermediate-term credit extended 3. Net change equals extensions minus liquidations (repayments, charge-offs and to individuals through regular business channels, usually to finance the purchase other credit); figures for all months are seasonally adjusted. of consumer goods and services or to refinance debts incurred for such purposes, and scheduled to be repaid (or with the option of repayment) in two or more ^Total consumer noninstallment credit outstanding—credit scheduled to be reinstallments. paid in a lump sum, including single-payment loans, charge accounts, and service 2. Includes auto dealers and excludes 30-day charge credit held by travel and credit—amounted to $64.3 billion at the end of 1978, $71.3 billion at the end of entertainment companies. 1979, and $72.2 billion at the end of 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer Debt A43 1.57 CONSUMER INSTALLMENT CREDIT Extensions and Liquidations Millions of dollars; monthly data are seasonally adjusted. 1981 WnlHpr anH tvrw* nf rrpHit 11997788 11997799 11998800 Feb. Mar. Apr. May June July Aug. Extensions 1 Total 297,668 324,777 305,887 28,706 29,822 28,878 28,149 29,005 28,750 28,899 By major holder 2 Commercial banks 142,433 154,733 133,605 11,648 12,676 11,986 12,055 12,483 12,433 12,034 3 Finance companies 50,505 61,518 60,801 6,193 5,911 5,218 4,937 5,251 5,439 6,385 4 Credit unions 38,111 34,926 29,594 3,167 3,153 3,181 3,212 3,137 3,299 2,913 5 Retailers' 44,571 47,676 50,959 4,500 4,685 5,002 4,486 5,018 4,826 4,616 6 Savings and loans 3,724 5,901 6.621 751 1,038 985 1,068 649 383 537 7 Gasoline companies 16,017 18,005 22,402 2,284 2,180 2,272 2,243 2,296 2,252 2,284 8 Mutual savings banks 2,307 2,018 1,905 163 179 234 148 171 118 130 By major type of credit 9 Automobile 87,981 93,901 83,002 8,333 8,700 7,205 7,320 7,442 8,178 8,573 10 Commercial banks 52,969 53,554 40,657 3,560 4,117 3,438 3,627 3,652 3,874 3,457 11 Indirect paper 29,342 29,623 22,269 1,944 2,365 1,929 2,071 2,126 2,349 2,084 12 Direct loans 23,627 23,931 18,388 1,616 1,752 1,509 1,556 1,526 1,525 1,373 13 Credit unions 18,539 17,397 15,294 1,613 1,586 1,589 1,608 1,553 1,663 1,537 14 Finance companies 16,473 22,950 27,051 3,160 2,997 2,178 2,085 2,237 2,641 3,579 15 Revolving 105,125 120,174 129,580 11,867 12,071 12,352 11,904 12,668 12,190 11,964 16 Commercial banks 51,333 61,048 61,847 5,602 5,695 5,561 5,613 5,905 5,557 5,528 17 Retailers 37,775 41,121 45,331 3,981 4,196 4,519 4,048 4,467 4,381 4,152 18 Gasoline companies 16,017 18,005 22,402 2,284 2,180 2,272 2,243 2,296 2,252 2,284 19 Mobile home 5,412 6,471 5,098 409 641 551 609 488 451 536 20 Commercial banks 3,697 4,542 2,942 185 259 251 250 259 282 297 21 Finance companies 886 797 898 88 88 100 112 122 116 120 22 Savings and loans 609 948 1,146 118 269 184 230 93 30 105 23 Credit unions 220 184 113 18 25 16 17 14 23 14 24 Other 99,150 104,231 88,207 8,097 8,410 8,770 8,316 8,407 7,931 7,826 25 Commercial banks 34,434 35,589 28,159 2,301 2,605 2,736 2,565 2,667 2,720 2,752 26 Finance companies 33,146 37,771 32,852 2,945 2,826 2,940 2,740 2,892 2,682 2,686 27 Credit unions 19,352 17,345 14,187 1,536 1,542 1,576 1,587 1,570 1,613 1,362 28 Retailers 6,796 6,555 5,628 519 489 483 438 551 445 464 29 Savings and loans 3,115 4,953 5,476 633 769 801 838 556 353 432 30 Mutual savings banks 2,307 2,018 1,905 163 179 234 148 171 118 130 Liquidations 31 Total 254,589 286,396 304,477 26,710 26,714 26,547 26,803 27,075 26,796 26,040 By major holder 32 Commercial banks 118,792 136,572 142,017 12,192 12,064 12,331 12,069 11,869 12,001 11,849 33 Finance companies 41,075 47,498 52,363 4,663 4,372 3,965 4,528 4,681 4,491 4,002 34 Credit unions 31,382 32,741 32,069 2,723 2,866 2,909 2,821 2,918 2767 2,668 35 Retailers' 42,074 45,544 49,668 4,397 4,432 4,471 4,489 4,602 4561 4,629 36 Savings and loans 3,717 4,574 5,136 497 620 564 549 604 558 495 37 Gasoline companies 15,760 17,496 21,414 2,075 2,186 2,131 2,176 2,218 2,248 2,251 38 Mutual savings banks 1,789 1,971 1,810 163 174 176 171 183 170 146 By major type of credit 39 Automobile 69,245 79,186 83,037 7,354 7,018 6,777 7,515 7,385 6,970 6,458 40 Commercial banks 42,036 46,697 46,999 3,906 3,888 3,899 3,835 3,866 3,675 3,548 41 Indirect paper 22,871 25,135 25,750 2,173 2,097 2,185 2,154 2,170 2,075 1,925 42 Direct loans 19,165 21,562 21,249 1,733 1,791 1,714 1,681 1,696 1,600 1,623 43 Credit unions 15,438 16,353 16,478 1,402 1,454 1,447 1,448 1,447 1,400 1,431 44 Finance companies 11,771 16,136 19,560 2,046 1,676 1,431 2,232 2,072 1,895 1,479 45 Revolving 96,090 111,546 126,655 11.426 11,484 11,514 11,554 11,650 11,713 11,473 46 Commercial banks 45,366 55,527 61,708 5,436 5,349 5,408 5,383 5,325 5,401 5,088 47 Retailers 34,964 38,523 43,533 3,915 3,949 3,975 3,995 4,107 4,064 4,134 48 Gasoline companies 15,760 17,496 21.414 2,075 2,186 2,131 2,176 2,218 2,248 2,251 49 Mobile home 5,126 4,868 4,610 456 553 406 366 399 384 360 50 Commercial banks 3,278 3,440 3,213 287 294 266 243 271 262 253 51 Finance companies 812 559 543 70 63 42 34 37 35 27 52 Savings and loans 885 708 716 87 172 85 78 79 74 68 53 Credit unions 151 161 138 12 24 13 11 12 13 12 54 Other 84,128 90,796 90,175 7,474 7,659 7,850 7,368 7,641 7,729 7,749 55 Commercial banks 28,112 30,908 30.097 2.563 2,533 2,758 2,608 2,407 2,663 2,960 56 Finance companies 28,492 30,803 32,260 2,547 2,633 2,492 2,262 2,572 2,651 2,496 57 Credit unions 15,793 16,227 15,453 1,309 1,388 1,449 1,362 1,459 1,354 1,225 58 Retailers 7,110 7,021 6,135 482 483 496 494 495 497 495 59 Savings and loans 2,832 3,866 4,420 410 448 479 471 525 484 427 60 Mutual savings banks 1,789 1,971 1,810 163 174 176 171 183 170 146 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

A44 DomesticN onfinancial Statistics • October 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 1981 11997755 11997766 11997777 11997788 11997799 11998800 H2 HI H2 HI H2 HI Nonfinancial sectors 1 Total funds raised 211.8 273.6 336.6 395.6 387.0 371.9 404.9 385.0 389.0 339.0 404.9 419.3 2 Excluding equities 201.7 262.8 333.5 396.3 394.0 357.0 403.5 394.7 393.3 330.1 383.8 417.7 Bv sector and instrument 3 U.S. government 85.4 69.0 56.8 53.7 37.4 79.2 43.4 30.0 44.7 66.5 91.9 89.1 4 Treasury securities 85.8 69.1 57.6 55.1 38.8 79.8 45.3 32.3 45.2 67.2 92.4 89.5 5 Agency issues and mortgages -.4 -.1 - .9 - 1.4 -1.4 -.6 -1.9 -2.3 -.5 -.6 -.6 -.4 6 All other nonfinancial sectors 126.4 204.6 279.9 342.0 349.6 292.7 361.5 355.0 344.3 272.5 313.0 330.2 7 Corporate equities 10.1 10.8 3.1 -.6 -7.1 15.0 1.4 -9.8 -4.3 8.9 21.0 1.6 8 Debt instruments 116.3 193.8 276.7 342.6 356.7 277.8 360.1 364.7 348.6 263.6 292.0 328.6 9 Private domestic nonfinancial sectors 114.9 185.0 266.0 308.7 328.6 263.4 318.2 341.0 316.1 241.3 285.6 282.5 10 Corporate equities 9.9 10.5 2.7 -.1 -7.8 12.9 1.6 -9.6 -6.1 6.9 18.8 .9 11 Debt instruments 105.0 174.5 263.2 308.8 336.4 250.6 316.6 350.6 322.2 234.4 266.8 281.5 12 Debt capital instruments 98.4 123.7 172.2 193.7 200.1 179.4 202.1 203.0 197.2 177.0 181.9 162.9 13 State and local obligations 16.1 15.7 21.9 26.1 21.8 26.9 26.8 20.9 22.7 21.6 32.1 27.8 14 Corporate bonds 27.2 22.8 21.0 20.1 21.2 30.4 21.0 21.7 20.7 35.3 25.6 19.5 Mortgages 15 Home mortgages 39.5 64.0 96.3 108.5 113.7 81.7 116.7 117.6 109.8 76.5 87.0 75.8 16 Multifamily residential * 3.9 7.4 9.4 7.8 8.5 8.5 8.0 7.6 8.2 8.8 7.7 17 Commercial 11.0 11.6 18.5 22.1 24.4 22.4 20.5 23.4 25.4 24.8 19.9 19.0 18 Farm 4.6 5.7 7.1 7.5 11.3 9.5 8.4 11.6 11.0 10.6 8.4 13.1 19 Other debt instruments 6.6 50.7 91.0 115.1 136.3 71.1 114.5 147.6 125.0 57.4 84.9 118.6 20 Consumer credit 9.6 25.4 40.2 47.6 46.3 2.3 47.0 50.9 41.6 -5.1 9.7 29.2 21 Bank loans n.e.c - 10.5 4.4 26.7 37.1 49.2 37.3 30.5 55.5 42.8 13.5 61.2 35.9 22 Open market paper -2.6 4.0 2.9 5 2 11.1 6.6 7.1 8.0 14.2 24.8 -11.6 17.6 23 Other 10.1 16.9 21.3 25.1 29.7 24.9 30.0 33.1 26.4 24.1 25.6 36.0 24 By borrowing sector 114.9 185.0 266.(1 308.7 328.6 263.4 318.2 341.0 316.1 241.3 285.6 282.5 25 State and local governments 13.7 15.2 17.3 20.9 18.4 25.3 23.3 17.9 18.9 19.7 30.9 24.6 26 Households 49.6 89.6 139.1 164.3 170.6 101.7 173.5 179.1 162.1 94.2 109.1 121.2 27 Farm 8.5 10.2 12.3 15.0 20.8 14.5 17.1 21.2 20.4 17.9 11.1 25.9 28 Nonfarm noncorporate 1.4 5.7 12.7 15.3 14.0 15.8 13.0 13.5 14.5 11.0 20.6 17.3 29 Corporate 1.7 64.3 84.6 93.2 104.8 106.1 91.3 109.3 100.2 98.4 113.8 93.6 30 Foreign 11.5 19.6 13.9 33.2 21.0 29.3 43.2 14.0 28.1 31.2 27.4 47.8 31 Corporate equities .2 .3 .4 - 5 .8 2.1 -.3 -.2 1.7 1.9 2.2 .6 32 Debt instruments 11.3 19.3 13.5 33.8 20.3 27.2 43.5 14.1 26.4 29.2 25.2 47.1 33 Bonds 6.2 8.6 5.1 4.2 3.9 .8 3.1 2.8 4.9 2.0 -.4 3.2 34 Bank loans n.e.c 2.0 5.6 3.1 19.1 2.3 11.5 26.5 2.1 2.4 6.1 17.0 18.6 35 Open market paper .3 1.9 2.4 6.6 11.2 10.1 9.6 6.1 16.3 15.7 4.5 20.6 36 U.S. government loans 2.8 3.3 3.(1 3.9 3.(1 4.7 4.2 3.1 2.8 5.4 4.0 4.7 Financial sectors 37 Total funds raised 9.7 23.4 51.4 76.8 84.3 66.7 75.2 87.8 80.8 59.8 73.5 88.6 By instrument 38 U.S. government related 10.3 15.1 21.9 36.7 48.2 43.0 39.0 43.7 52.8 44.7 41.3 37.2 39 Sponsored credit agency securities 2.3 3.3 7.0 23.1 24.3 24.4 24.9 21.2 27.3 25.1 23.7 24.1 40 Mortgage pool securities 7.1 12.2 16.1 13.6 24.0 18.6 14.1 22 5 25.5 19.6 17.6 13.0 41 Loans from U.S. government .9 -.4 -1.2 0 0 0 0 o 0 0 0 0 42 Private financial sectors - .6 8.2 29.5 40.1 36.0 23.7 36.2 44.1 28.0 15.2 32.2 51.4 43 Corporate equities .5 -.2 2.6 1.8 2.5 6.2 .5 3.6 1.4 7.1 5.2 9.9 44 Debt instruments -1.1 8.4 26.9 38.3 33.6 17.5 35.8 40.6 26.6 8.1 27.0 41.5 45 Corporate bonds 3.2 9.8 10.1 7.5 7.8 7.1 7.1 8.2 7.5 10.1 4.2 - 1.0 46 Mortgages 2.3 2.1 3.1 .9 - 1.2 -.9 -.7 .3 -2.6 -5.8 4.0 -2.3 47 Bank loans n.e.c -3.7 -3.7 -.3 2.8 -.4 -.5 3.0 - 1.4 .6 * -.9 1.5 48 Open market paper and RPs 1.1 2.2 9.6 14.6 18.2 4.6 15.0 25.4 10.9 -.8 10.1 25.3 49 Loans from Federal Home Loan Banks -4.0 -2.0 4.3 12.5 9.2 7.1 11.5 8.2 10.1 4.6 9.6 18.0 By sector 50 Sponsored credit agencies 3.2 2.9 5.8 23.1 24.3 24.4 24.9 21.2 27.3 25.1 23.7 24.1 51 Mortgage pools 7.1 12.2 16.1 13.6 24.0 18.6 14.1 22.5 25.5 19.6 17.6 13.0 52 Private financial sectors -.6 8.2 29.5 40.1 36.0 23.7 36.2 44.1 28.0 15.2 32.2 51.4 53 Commercial banks 1.2 2.3 1.1 1.3 1.6 .5 1.1 1.3 1.8 .8 ..3 .1 54 Bank affiliates .6 5.4 2.0 7.2 6.5 6.9 8.0 4.9 5.8 8.0 7.8 55 Savings and loan associations -2.3 .1 9.9 14.3 11.4 6.9 11.4 11.1 11.7 -1.4 15.2 17.1 56 Other insurance companies 1.0 .9 1.4 .8 .9 .9 .9 .9 .9 .9 .9 57 Finance companies .5 4.3 16.9 18.1 16.8 5.8 17.5 22.7 10.9 5.2 6.3 17.3 58 REITs -1.3 -2.2 -2.3 - 1.1 -.4 -1.7 - 1.1 -.6 _ i -1.4 -2.0 -1.2 59 Open-end investment companies -.3 -2.4 .4 - .5 -.6 4.4 —1.7 .7 -1.9 5.3 3.4 9.5 All sectors 60 Total funds raised, by instrument 221.5 297.0 388.0 472.5 471.3 438.6 480.1 472.8 469.7 398.8 478.4 507.8 61 Investment company shares -.3 -2.4 .4 - .5 -.6 4.4 -1.7 .7 -1.9 5.3 3.4 9.5 62 Other corporate equities 10.9 13.1 5.3 1.7 -4.0 16.8 3.6 -6.9 -1.0 10.7 22.8 2.0 63 Debt instruments 210.9 286.4 382.3 471.3 475.8 417.5 478.3 479.0 472.6 382.9 452.1 496.4 64 U.S. government securities 94.9 84.6 79.9 90.5 85.7 122.3 82.5 73.8 97.6 111.3 133.2 126.3 65 State and local obligations 16.1 15.7 21.9 26.1 21.8 26.9 26.8 20.9 22.7 21.6 32.1 27.8 66 Corporate and foreign bonds 36.7 41.2 36.1 31.8 32.8 38.4 31.2 32.6 33.0 47.4 29.5 21.7 67 Mortgages 57.2 87.2 132.3 148.3 155.9 121.1 153.4 160.6 151.1 114.2 128.0 113.2 68 Consumer credit 9.6 25.4 40.2 47.6 46.3 2.3 47.0 50.9 41.6 -5.1 9.7 29.2 69 Bank loans n.e.c -12.2 6.2 29.5 59.0 51.0 48.4 60.0 56.2 45.8 19.6 77.2 56.0 70 Open market paper and RPs -1.2 8.1 15.0 26.4 40.5 21.4 31.6 39.5 41.5 39.7 3.1 63.5 71 Other loans 9.8 17.8 27.4 41.5 41.9 36.7 45.7 44.4 39.3 34.1 39.3 58.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A45 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 1981 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997755 11997766 11997777 11997788 11997799 11998800 H2 HI H2 HI H2 HI 1 Total funds advanced in credit markets to nonfinancial sectors 201.7 262.8 333.5 396.3 394.0 357.0 403.5 394.7 393.3 330.1 383.8 417.7 By public agencies and foreign 2 Total net advances 39.6 49.8 79.2 101.9 74.0 92.1 102.7 49.6 98.5 102.9 81.3 114.6 3 U.S. government securities 18.0 23.1 34.9 36.1 -6.2 15.6 29.5 -27.1 14.7 23.2 8.0 28.9 4 Residential mortgages 15.8 12.3 20.0 25.7 36.7 31.1 30.1 35.7 37.8 33.3 28.9 21.2 5 FHLB advances to savings and loans -4.0 -2.0 4.3 12.5 9.2 7.1 11.5 8.2 10.1 4.6 9.6 18.0 6 Other loans and securities 9.8 16.4 20.1 27.6 34.3 38.2 31.6 32.8 35.8 41.7 34.8 46.5 Total advanced, bv sector 7 U.S. government 13.4 7.9 10.0 17.1 19.0 23.7 20.8 19.8 18.3 25.4 22.1 30.1 8 Sponsored credit agencies 11.6 16.8 22.4 39.9 53.4 43.8 44.8 47.8 58.9 42.4 45.2 44.6 9 Monetary authorities 8.5 9.8 7.1 7.(1 7.7 4.5 .5 -.9 16.2 12.1 -3.1 -7.4 10 Foreign 6.1 15.2 39.6 38.0 -6.1 20.0 36.7 -17.2 5.1 23.0 17.0 47.3 11 Agency borrowing not included in line 10.3 15.1 21.9 36.7 48.2 43.0 39.0 43.7 52.8 44.7 41.3 37.2 Private domestic funds advanced 12 Total net advances 172.4 228.1 276.2 331.0 368.2 307.9 339.8 388.9 347.6 271.9 343.8 340.3 13 U.S. government securities 76.9 61.5 45.1 54.3 91.9 106.7 53.0 101.0 82.9 88.1 125.3 97.5 14 State and local obligations 16.1 15.7 21.9 26.1 21.8 26.9 26.8 20.9 22.7 21.6 32.1 27.8 15 Corporate and foreign bonds 32.8 30.5 22.2 22.4 24.0 26.2 22.3 24.0 24.0 32.5 19.9 15.1 16 Residential mortgages 23.6 55.5 83.7 92.1 84.6 59.1 95.0 89.8 79.5 51.2 66.9 62.1 17 Other mortgages and loans 18.9 62.9 107.7 148.6 155.1 96.2 154.2 161.4 148.7 83.1 109.3 155.8 18 LESS: Federal Home Loan Bank advances -4.0 -2.0 4.3 12.5 9.2 7.1 11.5 8.2 10.1 4.6 9.6 18.0 Private financial intermediation 19 Credit market funds advanced by private financial institutions 123.4 191.4 260.9 302.4 292.5 270.3 294.8 316.9 268.0 246.1 294.4 317.6 20 Commercial banking 29.4 59.6 87.6 128.7 121.1 99.7 124.6 130.3 112.0 58.5 140.9 102.2 21 Savings institutions 53.2 70.5 82.0 73.5 55.9 58.4 69.4 59.6 52.2 35.5 81.3 43.0 22 Insurance and pension funds 40.6 49.7 67.8 75.0 66.4 79.8 73.9 72.3 60.5 89.2 70.3 76.1 23 Other finance .3 11.6 23.4 25.2 49.0 32.4 27.0 54.8 43.3 62.8 1.9 96.3 24 Sources of funds 123.4 191.4 260.9 302.4 292.5 270.3 294.8 316.9 268.0 246.1 294.4 317.6 25 Private domestic deposits 94.2 124.4 138.9 140.8 143.2 171.1 132.9 135.1 151.2 158.7 183.6 206.9 26 Credit market borrowing -1.1 8.4 26.9 38.3 33.6 17.5 35.8 40.6 26.6 8.1 27.0 41.5 27 Other sources 30.3 58.5 95.1 123.2 115.7 81.6 126.1 141.2 90.3 79.4 83.8 69.1 28 Foreign funds -8.7 -4.7 1.2 6.3 25.6 -22.3 11.8 45.6 5.6 -22.8 -21.9 -8.9 29 Treasury balances - 1.7 -.1 4.3 6.8 .4 -2.6 12.4 5.0 -4.2 -2.3 -2.8 .9 3 3 1 0 I O n t s h u e r r a , nc n e e t and pension reserves 2191..70 2 3 9 4 . . 0 3 3 50 9 . . 1 5 4 62 8 . . 2 0 4 4 1 7 . . 9 8 4 64 2 . . 1 4 4 6 1 0 . . 1 8 3 5 8 2 . . 4 3 4 4 5 3 . . 4 4 3 7 4 0 . . 5 0 5 58 0 . . 1 4 2 5 2 4 . . 5 6 Private domestic nonfinancial investors 32 Direct lending in credit markets 47.9 45.1 42.2 67.0 109.3 55.1 80.7 112.5 106.1 33.9 76.4 64.2 33 U.S. government securities 25.4 16.4 24.1 35.6 62.8 32.6 37.8 71.0 54.5 19.3 45.8 20.2 34 State and local obligations 8.4 3.3 - .8 1.4 1.4 3.1 .8 2.6 -> -1.8 7.9 18.2 35 Corporate and foreign bonds 8.9 11.8 -3.8 -2.9 10.3 3.6 * 4.6 16.0 4.8 2.3 -3.4 36 Commercial paper -1.3 1.9 16.5 11.4 -3.8 23.1 11.4 11.4 -4.5 -3.1 4.4 37 Other 6.6 11.7 13.2 16.4 23.5 19.7 19.1 22.9 24.0 16.0 23.3 24.9 38 Deposits and currency 101.2 133.4 148.5 152.1 152.6 182.3 143.0 149.3 155.9 167.6 197.1 222.1 39 Currency 6.2 7.3 9.3 7.9 10.3 8.7 9.0 6.9 8.5 12.1 3.8 40 Checkable deposits 9.4 10.4 17.2 16.3 19.2 4.2 13.8 16.6 21.9 -1.5 9.9 21.2 41 Small time and savings accounts 97.3 123.7 93.5 63.5 61.7 80.9 65.8 66.5 56.9 66.7 95.2 17.9 42 Money market fund shares 1.3 * 6.9 34.4 29.2 7.7 30.2 38.6 61.9 -3.4 104.1 43 Large time deposits - 14.0 -12.0 25.8 46.6 21.2 50.3 40.6 3.3 39.1 26.3 74.2 46.9 44 Security RPs .2 2.3 7.5 6.6 6.5 5.1 18.5 -5.3 5.3 7.8 16.8 4b Foreign deposits .8 1.7 1.3 2.0 1.5 .9 1.4 5.2 -2.3 .4 1.3 11.3 46 Total of credit market instruments, deposits and currency 149.1 178.5 190.7 219.1 261.9 237.5 223.7 261.8 262.0 201.5 273.4 286.3 47 Public support rate (in percent) 19.6 19.0 23.7 25.7 18.8 25.8 25.5 12.6 25.0 31.2 21.2 27.4 48 Private financial intermediation (in percent) 71.6 83.9 94.4 91.3 79.4 87.8 86.8 81.5 11.1 90.5 85.6 93.3 49 Total foreign funds -2.6 10.5 40.8 44.3 19.5 -2.3 48.5 28.4 10.7 .2 -4.8 38.4 MEMO: Corporate equities not included above 50 Total net issues 10.6 10.6 5.7 1.2 -4.6 21.1 1.8 -6.2 -2.9 16.0 26.3 11.4 51 Mutual fund shares -.3 -2.4 .4 -.5 -.6 4.4 -1.7 .7 -1.9 5.3 3.4 9.5 52 Other equities 10.9 13.1 5.3 1.7 -4.0 16.8 3.6 -6.9 -1.0 10.7 22.8 2.0 53 Acquisitions by financial institutions 9.8 12.5 7.4 4.5 10.6 17.7 6.9 7.1 14.0 10.5 24.9 25.2 54 Other net purchases .8 -1.9 -1.6 -3.4 -15.1 3.4 -5.0 -13.4 -16.9 5.5 1.4 -13.7 NOTES BY LINE NUMBER. 30. Excludes net investment of these reserves in corporate equities. 1. Line 2 of table 1.58. 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. 39. Mainly an offset to line 9. 12. Line 1 less line 2 plus line 11. Also line 19 less line 26 plus line 32. Also sum 46. Lines 32 plus 38, or line 12 less line 27 plus 39 and 45. of lines 27, 32, and 38 less lines 40 and 46. 47. Line 2/line 1. 17. Includes farm and commercial mortgages. 48. Line 19/line 12. 25. Line 38 less lines 40 and 46. 49. Sum of lines 10 and 28. 26. Excludes equity issues and investment company shares. Includes line 18. 50. 52. Includes issues by financial institutions. 28. Foreign deposits at commercial banks, bank borrowings from foreign branches, NOTE. Full statements for sectors and transaction types quarterly, and annually and liabilities of foreign banking agencies to foreign affiliates. for flows and for amounts outstanding, may be obtained from Flow of Funds 29. Demand deposits at commercial banks. Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System. Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • October 1981 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1981 MMeeaassuurree 11997788 11997799 11998800 Jan. Feb. Mar. Apr. May June July' Aug.' Sept. 1 Industrial production1 146.1 152.5 147.0 151.4 151.8 152.1 151.9 152.7 152.9 153.8 153.3 152.1 Market groupings 2 Products, total 144.8 150.0 146.7 149.9 150.2 150.7 151.3 152.3 152.2 152.8 152.3 151.4 3 Final, total 135.9 147.2 145.3 147.8 148.2 149.0 149.9 151.3 151.4' 151.9 151.3 151.0 4 Consumer goods 149.1 150.8 145.4 146.9 147.6 148.3 148.9 150.7 150.3' 150.2 149.0 148.5 5 Equipment 132.8 142.2 145.2 149.1 148.7 150.0 151.4 152.1 153.0 154.3 154.6 154.3 6 Intermediate 154.1 160.5 151.9 157.5 157.7 157.1 156.3 156.1 154.9' 156.3 155.7 153.0 7 Materials 148.3 156.4 147.6 153.8 154.3 154.4 152.9 153.4 154.0 155.4 154.8 153.1 Industry groupings 8 Manufacturing 146.7 153.6 146.7 151.1 151.2 151.6 152.0 152.8 152.4' 153.1 152.7 151.4 Capacity utilization (percent)1'2 9 Manufacturing 84.4 85.7 79.1 80.0 79.8 79.8 79.8 80.0 79.6' 79.8 79.3 78.5 10 Industrial materials industries 85.6 87.4 80.0 82.1 82.3 82.1 81.1 81.2 81.3' 81.9 81.4 80.4 11 Construction contracts (1972 = 100)3 174.1 185.6 161.8 185.0 177.0 183.0 172.0 160.0 170.0 n.a. n.a. n.a. 12 Nonagricultural employment, total4 131.8 136.5 137.6 138.4 138.7 138.8 139.0 139.1 139.2 139.6 139.7 139.6 13 Goods-producing, total 109.8 113.5 110.3 110.0 110.0 110.1 110.3 110.3 110.8 111.3 111.3 111.3 14 Manufacturing, total 105.4 108.2 104.4 103.7 103.8 103.8 104.6 105.0 104.1 105.6 105.5 105.6 15 Manufacturing, production-worker 103.0 105.3 99.4 98.2 98.2 98.4 99.2 99.6 99.6 100.1 100.1 100.0 16 Service-producing 143.8 149.1 152.6 154.0 154.4 154.5 154.7 155.0 154.8 155.2 155.3 155.1 17 Personal income, total 273.3 308.5 342.9 365.2 368.0 371.5 373.6 375.7' 378.5 384.0 388.0 n.a. 18 Wages and salary disbursements 258.8 289.5 314.7 335.6 337.9 340.2 341.8 343.6 345.2' 347.7 351.5 n.a. 19 Manufacturing 223.1 248.6 261.5 280.1 281.3 282.9' 286.1 289.2 289.9 292.2 294.9 n.a. 20 Disposable personal income5 267.0 299.6 332.5 352.5 355.3 358.7 360.1' 362.3 ' 364.4' 369.9 373.7 n.a. 21 Retail sales6 253.8 281.6 303.8 326.6 331.7 334.8 328.1 326.7 3.339' 3.338 3.380 3.395 Prices7 22 Consumer 195.4 217.4 246.8 260.5 263.2 265.1 226.8 269.0 271.3 274.4 276.5 n.a. 23 Producer finished goods 194.6 216.1 246.9 260.4 262.4 265.3 267.7 268.9 269.9 271.3 271.2 271.2 1. The industrial production and capacity utilization series have been revised 6. Based on Bureau of Census data published in Survey of Current Business. 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 SSeerriieess Q3 Q4 Q1 Q2' Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2' Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Manufacturing 141.5 148.6 151.3 152.4 186.4 187.9 189.4 190.9 75.9 79.1 79.9 79.8 2 Primary processing 139.7 152.7 157.5 156.6 191.2 192.5 193.8 195.0 73.1 79.3 81.3 80.3 3 Advanced processing 142.3 146.2 148.1 150.2 183.8 185.5 187.1 188.7 77.4 78.8 79.1 79.6 4 Materials 139.2 149.4 154.2 153.4 185.1 186.4 187.6 188.9 75.2 80.1 82.2 81.2 5 Durable goods 131.4 144.3 150.9 152.3 189.5 190.6 191.8 192.9 69.3 75.7 78.7 79.0 6 Metal materials 87.3 109.4 117.5 112.8 141.2C 141.3 141.5 141.7 61.8 77.4 83.0 79.6 7 Nondurable goods 163.2 176.3 179.2 178.4 203.4 205.3 207.3 209.2 80.2 85.9 86.5 85.3 8 Textile, paper, and chemical 167.0 183.7 186.7 185.9 212.6 214.9 217.1 219.4 78.5 85.5 86.0 84.8 9 Textile 113.2 113.7 114.8 114.5 139.4 139.7 140.1 140.6 81.2 81.4 81.9 81.4 10 Paper 143.6 149.7 151.4 151.0 157.2 158.5 159.7 160.7 91.3 94.5 94.8 93.9 11 Chemical 200.0 228.2 232.7 231.6 267.1 270.5 274.1 277.5 74.9 84.3 84.9 83.5 12 Energy materials 128.4 128.2 130.9 125.1 152.3 152.8 153.5 154.2 84.4 83.9 85.3 81.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Labor Market A47 2.11 Continued Previous cycle1 Latest cycle2 1980 1981 cpr:pc High Low High Low Aug. Jan. Feb. Mar. Apr. May June July Aug. Capacity utilization rate (percent) 13 Manufacturing 88.0 69.0 87.2 74.9 75.8 80.0 79.8 79.8 79.8 80.0 79.7 79.8 79.2 14 Primary processing 93.8 68.2 90.1 71.0 72.6 81.5 81.5 80.8 80.7 80.6 79.6 79.8 79.3 15 Advanced processing 85.5 69.4 86.2 77.2 79.1 79.2 79.0 79.2 79.4 79.8 79.6 79.7 79.1 16 Materials 92.6 69.4 88.8 73.8 75.0 82.1 82.3 82.1 81.1 81.2 81.4 81.7 81.2 i7 Durable goods 91.5 63.6 88.4 68.2 69.3 78.4 78.5 79.2 78.8 79.2 78.8 79.1 78.6 18 Metal materials 98.3 68.6 96.0 59.6 62.4 81.9 83.2 83.9 79.9 80.3 78.4 78.2 77.6 19 Nondurable goods 94.5 67.2 91.6 77.5 79.3 87.3 86.8 85.4 85.9 85.6 84.7 84.1 83.9 20 Textile, paper, and chemical 95.1 65.3 92.2 75.3 77.5 86.7 86.3 85.0 85.5 85.4 84.0 83.4 83.2 21 Textile 92.6 57.9 90.6 80.9 80.9 82.0 82.2 81.5 81.9 81.7 80.8 81.2 80.6 22 Paper 99.4 72.4 97.7 89.3 90.7 94.5 94.5 95.3 94.9 93.9 93.0 92.3 92.2 23 Chemical 95.5 64.2 91.3 70.7 73.6 86.0 85.3 83.4 84.1 84.3 82.7 81.8 81.9 24 Energy materials 94.6 84.8 88.3 82.7 84.9 84.9 85.8 85.2 79.9 79.8 83.4 85.7 84.1 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 CCaatteeggoorryy 11997788 11997799 11998800 Mar. Apr. May June Julyr Aug/ Sept. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 161,058 163,620 166,246 167,902 168,071 168,272 168,480 168,685 168,855 169,049 2 Labor force (including Armed Forces)1 ... 102,537 104,996 106,821 108.305 108,851 109,533 108,307 108,603 108,762 108,401 3 Civilian labor force 100.420 102,908 104,719 106,177 106,722 107,406 106,176 106,464 106,602 106,236 4 Nonagricultural industries2 91,031 93,648 93,960 95,136 95,513 95,882 95,127 95,704 95,574 94,959 5 Agriculture 3,342 3,297 3,310 3,276 3,463 3,353 3,265 3,258 3,370 3,310 Unemployment 6 Number 6,047 5,963 7,448 7,764 7,746 8,171 7,784 7,502 7,657 7,966 7 Rate (percent of civilian labor force) . 6.0 5.8 7.1 7.3 7.3 7.6 7.3 7.0 7.2 7.5 8 Not in labor force 58,521 58,623 59,425 59,598 59,219 58,739 60,173 60,082 60.093 60,648 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 86,697 89,823 90,564 91,347 91,458 91,564 91,615 91,880 91,929 91,875 10 Manufacturing 20,505 21,040 20,300 20,171 20,332 20,414 20,424 20,535 20,517 20,536 11 Mining 851 958 1,020 1,098 950 957 1,110 1,132 1,152 1,160 17. Contract construction 4,229 4,463 4,399 4,416 4,418 4,334 4,284 4,272 4,272 4,253 13 Transportation and public utilities 4,923 5,136 5,143 5,139 5,161 5,148 5,149 5,167 5,168 5,179 14 Trade 19,542 20,192 20,386 20,635 20,636 20,714 20,717 20,796 20,871 20,866 15 Finance 4,724 4,975 5,168 5,293 5,316 5,326 5,331 5,344 5,354 5,356 16 Service 16,252 17,112 17,901 18,371 18,475 18,540 18,560 18,642 18,673 18,757 17 Government 15,672 15,947 16.249 16,204 16,170 16,131 16,040 15,992 15,922 15,768 1. Persons 16 years of age and over. Monthly figures, which are based on sample 3. Data include all full- and part-time employees who worked during, or data, relate to the calendar week that contains the 12th day; annual data are received pay for, the pay period that includes the 12th day of the month, and averages of monthly figures. By definition, seasonality does not exist in population exclude proprietors, self-employed persons, domestic servants, unpaid family workfigures. Based on data from Employment and Earnings (U.S. Department of La- ers, and members of the Armed Forces. Data are adjusted to the March 1979 bor). benchmark and only seasonally adjusted data are available at this time. Based on 2. Includes self-employed, unpaid family, and domestic service workers. data from Employment and Earnings (U.S. Department of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • October 1981 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. 1967 1980 1980 1981 Grouping p p r o o r - - avertion Sept. Oct. Nov. Dec Jan. Feb. Mar. Apr. May June July Aug.P Sept Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 147.0 144.4 146.6 149.2 150.4 151.4 151.8 152.1 151.9 152.7 152.9 153.8 153.3 152.1 2 Products 60.71 146.7 145.6 147.1 148.7 149.4 149.9 150.2 150.7 151.3 152.3 152.2 152.8 152.3 151.4 3 Final products 47.82 145.3 144.1 145.7 147.4 147.8 147.8 148.2 149.0 149.9 151.3 151.4 151.9 151.3 151.0 4 Consumer goods 27.68 145.4 144.5 146.3 148.1 147.1 146.9 147.8 148.3 148.9 150.7 150.3 150.2 149.0 148.5 5 Equipment 20.14 145.2 143.6 144.8 146.5 148.8 149.1 148.7 150.0 151.4 152.1 153.0 154.3 154.6 154.3 6 Intermediate products 12.89 151.9 151.2 152.4 153.4 155.4 157.5 157.7 157.1 156.3 156.1 154.9 156.3 155.7 153.0 7 Materials 39.29 147.6 142.5 145.9 150.1 152.2 153.8 154.3 154.4 152.9 153.4 154.0 155.4 154.8 153.1 Consumer goods 8 Durable consumer goods 7.89 136.7 133.5 139.0 143.4 141.3 140.1 141.2 143.6 144.3 147.3 147.9 146.4 142.0 141.3 9 Automotive products 2.83 132.8 131.2 140.9 146.1 139.0 130.4 133.9 139.2 142.9 151.8 153.1 147.9 137.0 137.9 10 Autos and utility vehicles.... 2.03 110.1 106.5 119.2 125.4 116.2 102.7 108.5 116.1 120.2 129.1 131.4 123.0 107.7 109.9 11 Autos 1.90 103.6 98.9 109.7 115.4 105.9 93.3 101.1 107.8 113.2 120.0 122.2 118.1 103.9 103.4 12 Auto parts and allied goods.. 80 190.4 193.9 196.1 198.6 197.0 200.8 198.4 197.5 200.8 209.5 208.0 210.9 211.2 209.0 13 Home goods 5.06 138.9 134.7 137.8 141.8 142.6 145.6 145.2 146.1 145.0 144.8 145.0 145.6 144.9 143.2 14 Appliances, A/C, and TV ... 1.40 117.3 115.8 122.2 128.4 126.4 132.2 125.8 129.1 121.2 121.4 120.0 123.6 125.9 122.7 15 Appliances and TV 1.33 119.5 117.1 124.5 131.0 128.7 134.1 128.2 131.2 122.6 122.3 121.4 124.8 127.9 16 Carpeting and furniture 1.07 155.2 147.8 150.2 154.1 157.3 156.2 160.4 160.2 165.2 163.1 166.3 163.2 160.1 17 Miscellaneous home goods... 2.59 143.8 139.6 141.2 144.0 145.4 148.4 149.5 149.4 149.7 149.9 149.8 150.3 148.9 148.0 18 Nondurable consumer goods 19.79 148.9 148.9 149.3 150.0 149.3 149.6 150.5 150.1 150.7 152.1 151.2 151.7 151.7 151.4 19 Clothing 4.29 126.0 123.5 122.5 125.5 121.0 121.2 120.9 118.9 120.6 122.1 120.9 121.2 20 Consumer staples 15.50 155.2 156.0 156.7 156.7 157.2 157.5 158.6 158.8 159.0 160.3 159.6 160.2 160.2 160.0 21 Consumer foods and tobacco 8.33 147.4 147.5 148.9 149.1 149.0 149.3 150.5 150.5 150.2 151.3 149.6 150.0 149.6 22 Nonfood staples 7.17 164.3 165.8 165.8 165.6 166.6 167.0 168.1 168.4 169.3 170.8 171.3 171.9 172.6 172.8 23 Consumer chemical products 2.63 208.9 211.1 211.1 211.0 213.8 213.0 219.3 220.0 224.1 225.1 224.4 226.1 226.7 24 Consumer paper products . 1.92 123.1 122.2 125.8 128.3 127.7 127.9 129.0 128.7 127.4 127.7 129.2 127.7 127.7 25 Consumer energy products 2.62 149.8 152.2 149.6 147.3 147.8 149.4 145.4 143.7 144.9 147.9 148.9 149.9 151.1 26 Residential utilities 1.45 167.9 173.8 169.6 166.0 166.2 167.5 161.3 161.1 162.9 168.9 170.4 172.5 Equipment 27 Business 12.63 173.2 170.7 171.9 173.9 177.1 177.7 177.5 179.3 181.0 182.0 183.6 185.1 185.3 184.7 28 Industrial 6.77 156.5 154.0 153.5 155.3 159.1 161.5 163.4 164.6 165.9 167.0 169.0 169.6 170.8 170.4 29 Building and mining 1.44 239.9 242.5 242.8 247.9 253.3 264.0 270.4 276.6 281.7 286.4 289.7 291.3 293.0 293.4 30 Manufacturing 3.85 128.2 124.0 123.1 124.3 128.5 127.7 128.4 128.6 128.5 128.4 130.6 130.8 131.5 130.8 31 Power 1.47 148.9 145.9 145.4 145.3 146.5 149.1 149.9 149.3 149.9 150.8 151.2 151.6 153.6 153.1 32 Commercial transit, farm 5.86 192.4 189.9 193.1 195.4 198.0 196.6 193.7 196.2 198.6 199.4 200.4 202.9 202.0 201.2 33 Commercial 3.26 237.8 237.6 242.0 244.8 248.5 249.3 250.4 252.7 254.5 258.0 259.9 264.7 265.8 266.3 34 Transit 1.93 139.9 134.6 135.6 137.5 139.0 133.1 124.8 127.8 131.5 130.0 129.7 128.4 125.3 122.9 35 Farm 67 123.1 116.8 120.9 121.9 122.4 122.9 116.4 118.5 119.7 113.9 114.9 117.0 112.7 36 Defense and space 7.51 98.2 98.1 99.2 100.3 101.0 100.9 100.5 100.7 101.5 102.0 101.7 102.6 103.1 103.4 Intermediate products 37 Construction supplies 6.42 140.9 138.5 140.6 142.6 145.2 148.4 148.9 149.0 147.9 146.5 143.4 144.1 143.0 138.2 38 Business supplies 6.47 162.8 163.7 164.1 164.2 165.5 166.6 166.4 165.1 164.7 165.6 166.2 168.3 168.3 39 Commercial energy products.. 1.14 172.3 174.0 173.2 174.0 175.4 175.5 174.0 174.7 175.2 179.0 177.7 179.8 178.6 Materials 40 Durable goods materials 20.35 143.0 133.9 139.5 146.1 147.4 150.0 150.6 152.2 151.8 152.8 152.4 153.4 153.3 150.5 41 Durable consumer parts 4.58 107.8 102.8 108.3 113.1 113.8 114.7 114.3 118.4 119.7 121.1 123.1 123.1 120.8 117.3 42 Equipment parts 5.44 187.2 176.6 179.1 184.2 186.1 189.7 188.9 191.1 192.8 194.0 193.2 193.7 194.1 192.5 43 Durable materials n.e.c 10.34 135.3 125.2 132.4 140.6 142.0 144.7 146.6 146.7 144.3 145.1 143.9 145.7 146.1 143.2 44 Basic metal materials 5.57 105.3 91.4 100.7 114.7 114.3 116.6 118.6 118.3 113.8 114.3 112.8 114.6 115.7 45 Nondurable goods materials .... 10.47 171.5 171.3 174.3 175.1 179.6 180.2 179.9 177.5 179.3 179.0 176.9 176.9 176.4 176.6 46 Textile, paper, and chemical materials 7.62 177.7 176.5 180.8 182.4 187.6 187.6 187.3 185.1 186.8 187.3 183.7 184.1 183.8 184.4 47 Textile materials 1.85 117.4 114.3 113.7 115.2 112.2 114.8 115.1 114.4 115.1 114.9 113.4 116.3 115.5 48 Paper materials 1.62 145.6 148.0 148.6 149.5 151.1 150.5 151.0 152.6 152.2 150.9 149.8 149.3 149.7 49 Chemical materials 4.15 217.2 215.3 223.4 225.2 235.9 234.7 233.8 229.5 232.4 233.9 228.4 228.0 227.7 50 Containers, nondurable 1.70 165.9 169.7 168.9 166.5 169.9 173.0 172.3 168.7 172.0 167.8 171.4 171.7 169.5 51 Nondurable materials n.e.c. 1.14 138.2 139.0 138.4 139.2 139.7 141.0 141.8 139.6 139.7 140.5 139.6 136.3 137.4 52 Energy materials 8.48 129.3 127.6 126.2 128.9 129.6 130.2 131.6 130.9 123.1 123.0 129.3 133.5 131.7 130.2 53 Primary energy 4.65 115.2 114.1 113.9 114.4 116.0 115.8 118.2 116.9 104.2 104.4 113.7 120.5 119.2 54 Converted fuel materials 3.82 146.5 144.2 141.3 146.5 146.1 147.8 148.0 148.1 146.1 145.5 148.2 149.2 146.9 Supplementary groups 55 Home goods and clothing 9.35 133.0 129.6 130.8 134.3 132.7 134.4 134.1 133.6 133.8 134.4 133.9 134.4 133.9 132.6 56 Energy, total 12.23 137.7 137.2 135.6 137.0 137.7 138.5 138.5 137.7 132.6 133.5 138.0 141.3 140.2 139.0 57 Products 3.76 156.6 158.8 156.8 155.4 156.1 157.3 154.0 153.1 154.1 157.3 157.6 159.0 159.5 58 Materials 8.48 129.3 127.6 126.2 128.9 129.6 130.2 131.6 130.9 123.1 123.0 129.3 133.5 131.7 130.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 1967 1981 SIC pro- 1980 Grouping code por- avg. tion Sept. Oct. Nov. Dec Jan. Feb. Mar. Apr. May June July Aug.^ Sept Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities. 12.05 149.5 149.5 148.9 151.5 152.4 153.3 154.1 154.8 150.5 152.1 156.3 159.1 158.1 157.7 2 Mining 6.36 132.7 130.7 132.1 135.1 138.6 140.4 143.1 143.2 135.2 135.4 141.7 146.6 146.3 145.9 3 Utilities 5.69 168.3 170.6 167.7 169.9 167.9 167.6 166.4 167.8 167.6 170.7 172.7 173.1 171.3 170.8 4 Electric 3.88 189.7 193.7 189.6 192.6 189.5 189.3 187.1 188.9 188.6 192.9 195.6 196.2 193.4 192.6 5 Manufacturing 87.95 146.7 143.9 146.5 148.9 150.4 151.1 151.2 151.6 152.0 152.8 152.4 153.1 152.7 151.4 6 Nondurable 35.97 161.2 161.0 162.1 163.0 165.0 165.6 166.2 165.3 165.9 166.4 165.8 166.9 166.7 166.4 7 Durable 51.98 136.7 132.1 135.7 139.2 140.3 141.0 140.8 142.1 142.5 143.5 143.2 143.6 142.9 141.0 Mining 8 Metal 10 .51 109.2 72.8 90.8 107.2 122.2 125.5 134.1 131.1 123.1 125.0 123.5 123.1 121.9 9 Coal 11.12 .69 146.7 149.1 149.7 151.7 153.5 147.5 159.0 151.2 75.9 77.0 122.9 170.0 168.4 161.0 10 Oil and gas extraction . .. 13 4.40 133.3 134.7 134.5 136.1 138.4 141.4 142.2 144.1 146.1 146.2 148.2 147.9 148.2 149.0 11 Stone and earth minerals. 14 .75 132.8 129.7 129.8 132.7 137.4 138.4 140.0 138.8 133.7 132.2 132.7 133.1 131.7 Nondurable manufactures 12 Foods 20 8.75 149.6 149.9 151.1 151.6 151.0 151.9 152.5 152.4 151.9 152.2 151.3 151.5 150.8 13 Tobacco products 21 .67 119.9 119.7 123.6 123.5 118.8 123.5 125.4 125.7 122.2 122.3 120.9 122.2 14 Textile mill products 22 2.68 138.6 133.2 134.3 136.4 135.6 138.4 139.3 136.2 138.9 138.8 138.3 140.0 137.6 15 Apparel products 23 3.31 127.0 123.5 121.7 125.7 122.7 123.8 121.6 120.2 121.6 122.6 121.1 122.2 16 Paper and products 26 3.21 151.1 153.6 153.4 154.3 157.0 156.5 156.0 157.6 157.0 155.9 153.4 154.9 155.4 157.1 17 Printing and publishing 27 4.72 139.6 140.9 142.5 142.1 143.0 143.9 144.8 142.7 141.6 141.3 143.1 144.4 145.0 145.4 18 Chemicals and products 28 7.74 207.1 208.2 209.4 211.7 220.5 218.9 219.8 218.5 219.8 220.6 218.4 220.5 221.0 19 Petroleum products 29 1.79 132.9 129.0 128.0 128.6 131.3 133.1 131.5 130.3 130.0 129.8 129.3 128.7 131.4 131.0 20 Rubber and plastic products. 30 2.24 235.7 254.5 258.8 258.9 262.3 264.0 270.2 269.5 275.2 280.3 285.1 285.3 283.0 21 Leather and products 31 .86 70.1 67.5 70.1 71.0 67.9 68.9 68.3 68.8 68.9 69.8 68.4 70.1 70.2 Durable manufactures 22 Ordnance, private and government 19.91 3.64 78.5 78.9 79.4 79.7 79.6 78.6 78.4 78.5 79.8 80.9 80.9 80.6 82.1 82.8 23 Lumber and products 24 1.64 119.3 121.6 121.4 123.7 123.6 127.4 126.2 125.6 126.3 126.2 122.5 122.9 117.5 24 Furniture and fixtures 25 1.37 150.0 144.5 146.7 147.6 148.6 150.0 154.3 155.6 158.7 158.9 162.4 164.9 161.4 25 Clay, glass, stone products .. 32 2.74 147.5 143.8 146.2 148.8 153.0 156.8 156.4 154.6 154.3 151.7 148.1 148.9 147.4 26 Primary metals 33 6.57 102.3 90.6 99.6 113.2 111.5 114.1 114.5 114.9 110.6 111.9 107.4 109.2 112.1 107.3 27 Iron and steel 331.2 4.21 92.4 80.4 92.0 107.6 103.0 108.7 108.4 108.0 103.4 105.6 98.5 99.7 104.6 28 Fabricated metal products. 34 5.93 134.1 128.8 131.7 132.3 135.7 135.8 137.6 139.2 139.5 138.4 139.3 140.0 139.2 137.5 29 Nonelectrical machinery .. 35 9.15 162.8 159.5 160.9 162.9 166.9 167.3 168.3 169.2 169.7 172.1 174.1 176.7 176.7 175.4 30 Electrical machinery 36 8.05 172.8 167.4 169.8 173.0 175.1 177.6 174.9 177.4 178.8 179.9 180.1 180.9 181.8 179.7 31 Transportation equipment.. 37 9.27 116.9 113.3 118.3 121.8 120.4 117.4 116.1 119.5 121.3 123.7 123.4 119.8 115.4 114.8 32 Motor vehicles and parts.. 371 4.50 119.0 113.7 123.2 129.2 125.7 120.0 119.9 127.1 130.7 136.4 137.5 130.5 122.8 122.1 33 Aerospace and miscellaneous transportation equipment 372-9 4.77 114.9 112.8 113.7 114.9 115.4 114.9 112.6 112.3 112.4 111.8 110.2 109.7 108.4 107.9 34 Instruments 38 2.11 171.1 168.1 169.6 170.0 171.9 173.9 171.1 170.0 170.0 170.6 171.3 172.1 171.7 170.3 35 Miscellaneous manufactures . 39 1.51 148.3 144.6 145.0 147.1 151.0 152.9 154.9 155.4 157.3 157.0 158.8 159.5 157.3 155.5 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.4' 601.9 597.1 604.0 611.8 612.4 612.9 614.5 618.0 616.2 622.2 619.2 620.7 614.6 611.1 37 Final 390.91 465.2 461.1 467.0 473.5 472.6 471.6 472.8 476.4 476.3 482.4 480.5 481.2 475.8 474.9 38 Consumer goods . 277.51 313.3 311.8 315.8 320.7 317.7 316.8 318.8 320.5 320.0 324.3 322.1 323.7 318.4 317.7 39 Equipment 113.4' 152.0 149.2 151.2 152.9 154.9 154.8 154.0 155.9 156.3 158.1 158.5 157.5 157.4 157.2 40 Intermediate 116.61 136.7 136.0 137.1 138.3 139.8 141.2 141.7 141.7 139.9 139.8 138.7 139.6 138.8 136.2 1. 1972 dollar value. NOTE. Published groupings include some series and subtotals not shown separately. For description and historical data, see Industrial Production—1976 Revision (Board of Governors of the Federal Reserve System: Washington, D.C.), December 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • October 1981 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1981 IItteemm 11997799 11998800 Jan. Feb. Mar. Apr. May June' July' Aug. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,801 1,552 1,191 1,214 1,165 1,153 1,186 1,167 963 913 863 2 1-family 1,183 981 710 715 677 678 689 654 567 528 491 3 2-or-more-family 618 571 481 499 488 475 497 513 396 385 372 4 Started 2,020 1,745 1,292 1,660 1,215 1,297 1,332 1,158 1,039 1,049 937 5 1-family 1,433 1,194 852 993 791 838 897 764 688 707 591 6 2-or-more-family 587 551 440 667 424 459 435 394 351 342 346 7 Under construction, end of period1 1,310 1,140 896 940 938 927 913 894 857 829 n.a. 8 1-family 765 639 515 544 541 533 526 506' 483 468 n.a. 9 2-or-more-family 546 501 382 397 397 394 388 388' 373 361 n.a. 10 Completed 1,868 1,855 1,502 1,252 1,389 11,,336622 1,519 1,273' 1,375 1,294 n.a. 11 1-family 1,369 1,286 957 903 965 888800 964 875' 875 834 n.a. 12 2-or-more-family 498 569 545 349 424 482 555 398' 500 460 n.a. 13 Mobile homes shipped 276 277 222 233 256 255 265 255 246 268 n.a. Merchant builder activity in 1-family units 14 Number sold 818 709 530 523 500 507 451 478' 406 422 362 15 Number for sale, end of period1 419 402 340 329 334 325 327 322' 311 304 300 Price (thousands of dollars)2 Median 16 Units sold 55.8 62.7 64.9 67.9 65.8 67.1 68.4 71.2r 69.2 70.0 73.9 Average 17 Units sold 62.7 71.9 76.6 80.2 80.1 81.2 82.9 83.7' 85.3 83.4 88.4 EXISTING UNITS (1-family) 18 Number sold 3,863 3,701 2,881 2,580 2,560 2,490 2,610 2,500 2,660 2,520 2,260 Price of units sold (thous. of dollars)2 19 Median 48.7 55.5 62.1 64.5 64.1 64.4 65.3 66.3 67.7 67.5 68.4 20 Average 55.1 64.0 72.7 76.1 75.7 76.2 77.3 78.6 79.9 79.6 80.7 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 205,559 230,781 230,273 259,049 254,458 250,274 246,542' 235,907r 233,998 234,777 230,976 22 Private 159,664 181,690 174,896 193,877 193,155 189,641 189,921' 184,077' 181,811 183,416 181,904 23 Residential 93,423 99,032 87,260 100,686 99,684 96,266 95,206' 89,719' 85,971 85,377 83,840 24 Nonresidential, total 6666,,224411 8822,,665588 8877,,663366 9933,,119911 93,471 9933,,337755 94,715' 9944,,335588'' 9955,,884400 9988,,003399 9988,,006644 Buildings 2b Industrial 10,993 14,953 13,839 15,339 15,094 15,380 15,504 15,503 16,243 17,182 18,441 26 Commercial 25,137 34,381 43,260 48,459 49,359 49,448 33,395' 32,391 32,442 34,028 33,135 27 Other 6,739 7,427 8,654 9,891 9,938 9,588 9,196 8,903 9,735 9,241 9,080 28 Public utilities and other 23,372 25,897 21,883 19,502 19,080 18,959 36,620' 37,561' 37,420 37,588 37,408 29 Public 45,896 49,088 55,371 65,173 61,302 60,632 56,620' 51,830' 52,186 51,360 49,073 30 Military 1,501 1,648 1,880 1,810 2,173 1,685 2,105' 2,065' 2,254 1,925 1,785 31 Highway 10,708 11,998 13,784 19,428 17,832 16,200 15,099 12,419 13,338 13,203 12,060 32 Conservation and development 4,457 4,586 5,089 6,285 6,168 5,565 5,681 4,894 4,912 5,226 4,689 33 Other 29,230 30,856 34,618 37,650 35,129 37,182 33,735' 32,452' 31,682 31,006 30,539 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 and 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 A51 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted 12 months to 3 months (at annual rate) to 1 month to IIInnndddeeexxx llleeevvveeelll AAAuuuggg... IIIttteeemmm 1980 1981 1981 111999888111 11998800 11998811 (((111999666777 AAuugg.. AAuugg.. === 111000000)))''' Sept. Dec. Mar. June Apr. May June July Aug. CONSUMER PRICES2 1 All items 12.8 10.9 7.8 13.2 9.6 7.4 .4 .7 .7 1.2 .8 276.S 2 Commodities 11.5 8.2 13.2 11.0 8.9 2.1 .0 .2 .4 .8 .6 256.2 3 Food 9.5 7.2 19,7 13.1 2.1 -.1 .0 -.2 .2 .8 .8 277.4 4 Commodities less food 12.4 8.7 10.6 9.9 12.3 3.1 .0 .4 .4 .7 .5 243.8 5 Durable 9.7 8.7 15.2 11.8 -.7 9.0 .3 .9 1.0 1.2 1.0 230.9 6 Nondurable 15.8 8.6 5.0 6.2 29.8 -2.0 -.2 -.2 - .2' .1 .3 258.4 7 Services 14.7 14.6 .7 16.8 10.3 15.1 1.0 1.4 1.2 1.8 1.2 312.2 8 Rent 8.8 8.9 8.6 9.6 7.0 7.7 .6 .8 .4 .5 1.2 210.3 9 Services less rent 15.5 15.4 -.3 17.8 10.9 16.1 1.0 1.5 1.3 2.0 1.2 331.7 Other groupings 10 All items less food 13.6 11.6 5.7 13.2 11.7 9.0 .5 .9 .8 1.3 .8 274.9 11 All items less food and energy 11.9 11.5 5.8 14.4 5.8 11.8 .6 1.1 1.0 1.4 .9 261.3 12 Homeownership 17.9 14.7 -3.5 23.1 3.1 16.9 .7 1.7 1.5 2.1 1.1 361.8 PRODUCER PRICES 13 Finished goods 14.8 7.9 13.5 8.3 13.3 5.8 .8 A' ,3r .4 .3 271.2 14 Consumer 15.8 7.3 14.5 7.4 13.6 4.9 .8 .3' ,lr .3 .3 272.6 15 Foods 10.0 3.7 31.0 4.3 1.6 .5 -.1 .1' .2' 1.5 .2 255.5 16 Excluding foods 18.7 8.8 7.5 8.9 18.6 6.6 1.1 .3r V -.1 .3 277.5 17 Capital equipment 11.8 9.9 9.9 11.8 12.0 10.1 .9 .1' .8r .7 .6 265.9 18 Intermediate materials3 14.5 10.0 7.8 12.9 14.3 7.4 1.0 .5 .2' .5 .4 314.3 Crude materials 19 Nonfood 20.6 20.9 32.3 27.5 39.7 6.5 1.3 1.6r -1.3" .8 -.1 485.9 20 Food 13.9 -5.4 73.9 -4.0 -23.1 8.5 1.5 -2.2 2.1' .3 -.9 261.8 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers. animal feeds. SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • October 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 AAccccoouunntt 11997788 11997799 11998800 Q2 Q3 Q4 Q1 Q2' 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 2,885.8 By source 2 Personal consumption expenditures 1,348.7 1,510.9 1,672.8 1,626.8 1,682.2 1,751.0 i,8io.r 1,829.1 3 Durable goods 199.3 212.3 211.9 194.4 208.8 223.3 238.3 227.3 4 Nondurable goods 529.8 602.2 675.7 664.0 674.2 703.5 726.0 735.3 5 Services 619.6 696.3 785.2 768.4 799.2 824.2 845.8 866.5 6 Gross private domestic investment 375.3 415.8 395.3 390.9 377.1 397.7 437.1 458.6 7 Fixed investment 353.2 398.3 401.2 383.5 393.2 415.1 432.7 435.3 8 Nonresidential 242.0 279.7 296.0 289.8 294.0 302.1 315.9 324.6 9 Structures 78.7 96.3 108.8 108.4 107.3 111.5 117.2 123.1 10 Producers' durable equipment 163.3 183.4 187.1 181.4 186.8 190.7 198.7 201.5 11 Residential structures 111.2 118.6 105.3 93.6 99.2 113.0 116.7 110.7 12 Nonfarm 106.9 113.9 100.3 88.9 94.5 107.6 111.4 105.4 13 Change in business inventories 22.2 17.5 -5.9 7.4 -16.0 -17.4 4.5 23.3 14 Nonfarm 21.8 13.4 -4.7 6.1 -12.3 -14.0 6.8 21.5 15 Net exports of goods and services -0.6 13.4 23.3 17.1 44.5 23.3 29.2 20.8 16 Exports 219.8 281.3 339.8 333.3 342.4 346.1 367.4 368.2 17 Imports 220.4 267.9 316.5 316.2 297.9 322.7 338.2 347.5 18 Government purchases of goods and services 432.6 473.8 534.7 530.0 533.5 558.6 576.5 577.4 19 Federal 153.4 167.9 198.9 198.7 194.9 212.0 221.6 219.5 20 State and local 279.2 305.9 335.8 331.3 338.6 346.6 354.9 357.9 By major type of product 21 Final sales, total 2,133.9 22,,339966..44 2,632.0 2,557.4 2,653.4 2,748.0 2,848.5 2,862.5 22 Goods 946.6 1,055.9 1,130.4 1,106.4 1,129.4 1,169.0 1,247.5 1,257.0 23 Durable 409.8 451.2 458.6 444.6 456.5 476.7 501.4 516.9 24 Nondurable 536.8 604.7 671.9 661.8 672.9 692.2 746.1 740.1 25 Services 976.3 1,097.2 1,229.6 1,205.6 1,249.0 1,285.3 1,317.1 1,344.7 26 Structures 233.2 260.8 266.0 252.8 258.9 276.4 288.4 284.1 27 Change in business inventories 22.2 17.5 -5.9 7.4 -16.0 -17.4 4.5 23.3 28 Durable goods 17.8 11.5 -4.0 3.3 -8.4 .7 -4.2 18.5 29 Nondurable goods 4.4 6.0 -1.8 4.1 -7.7 -18.1 8.6 4.8 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 1,516.4 1,510.4 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 2,320.9 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 1,752.0 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 1,467.0 34 Government and government enterprises 219.6 235.9 253.6 250.5 253.9 263.3 267.1 270.5 35 Other 885.7 1,000.0 1,090.0 1,069.9 1,088.4 1,134.0 1,175.7 1,196.4 36 Supplement to wages and salaries 194.3 225.0 252.9 248.6 255.0 264.5 279.5 285.1 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 117.1 131.6 130.6 124.9 129.7 134.0 132.1 134.1 40 Business and professional1 91.0 100.7 107.2 101.6 107.6 111.6 113.2 112.5 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 199.0 196.8 182.7 169.3 177.9 183.3 203.0 190.3 44 Profits before tax3 223.3 255.4 245.5 217.9 237.6 249.5 257.0 229.0 45 Inventory valuation adjustment -24.3 -42.6 -45.7 -31.1 -41.7 -48.4 -39.2 -24.0 46 Capital consumption adjustment -13.5 -15.9 -17.2 -17.6 -17.9 -17.8 -14.7 -14.7 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 A53 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1981 Q2 Q3 Q4 01 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 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 3 Commodity-producing industries 389.1 437.9 465.4 456.0 460.1 484.0 501.3 4 Manufacturing 299.2 333.4 350.7 343.2 346.7 364.0 377.4 5 Distributive industries 270.5 303.0 328.9 323.2 329.2 340.6 351.9 6 Service industries 226.1 259.2 295.7 290.8 298.7 310.0 322.5 7 Government and government enterprises 219.4 236.1 253.6 250.5 253.9 263.3 267.1 8 Other labor income 102.2 118.6 137.1 135.1 139.1 143.5 148.0 9 Proprietors' income1 117.2 131.6 130.6 124.9 129.7 134.0 132.1 10 Business and professional1 91.0 100.8 107.2 101.6 107.6 111.6 113.2 11 Farm1 26.1 30.8 23.4 23.3 22.1 22.5 18.9 12 Rental income of persons2 27.4 30.5 31.8 31.5 32.0 32.4 32.7 13 Dividends 43.1 48.6 54.4 54.2 55.1 56.1 58.0 14 Personal interest income 173.2 209.6 256.3 253.6 261.8 269.7 288.7 15 Transfer payments 223.3 249.4 294.2 280.7 310.7 313.9 319.6 16 Old-age survivors, disability, and health insurance benefits.... 116.2 131.8 144.7 165.3 169.8 153.8 163.2 17 LESS: Personal contributions for social insurance 69.6 80.6 85.9 91.2 102.3 87.9 88.1 18 EQUALS: Personal income 1.721.8 1,943.8 2.114.5 2,256.2 2,319.8 2,160.2 2,182.1 19 LESS: Personal tax and nontax payments 258.8 302.0 330.3 359.2 372.0 338.5 341.5 20 EQUALS: Disposable personal income 1.462.9 1,641.7 1,784.1 1,897.0 1.947.8 1,821.7 1,840.6 21 LESS: Personal outlays 1,386.6 1,555.5 1,674.1 1,799.4 1.858.9 1.720.4 1,729.2 22 EQUALS: Personal saving 76.3 86.2 110.0 97.6 88.9 101.3 111.4 MEMO: Per capita (1972 dollars) 23 Gross national product 6,426 6,588 6,503 6.438 6.456 6,499 6,619 24 Personal consumption expenditures 4,046 4,135 4,108 4,044 4,082 4,142 4.191 25 Disposable personal income 4,389 4,493 4,473 4,435 4,468 4,488 4,511 26 Saving rate (percent) 5.2 5.2 5.6 6.2 6.1 5.1 4.6 GROSS SAVING 27 Gross saving 355.2 412.0 401.9 394.5 402.0 406.7 442.6 28 Gross private saving 355.4 398.9 432.9 435.9 446.5 436.4 451.1 29 Personal saving 76.3 86.2 101.3 110.0 111.4 97.6 88.9 30 Undistributed corporate profits' 57.9 59.1 44.3 42.1 42.8 40.4 55.7 31 Corporate inventory valuation adjustment -24.3 -42.6 -45.7 -31.1 -41.7 -48.4 -39.2 Capital consumption allowances 32 Corporate 136.4 155.4 175.4 173.0 178.4 183.2 187.5 33 Noncorporate 84.8 98.2 111.8 110.7 113.4 115.8 119.0 34 Wage accruals less disbursements .0 .0 .0 .0 .5 -.5 .0 35 Government surplus, or deficit (-), national income and product accounts -0.2 11.9 -32.1 -29.6 -45.6 -30.8 -9.7 36 Federal -29.2 -14.8 -61.2 -66.5 -74.2 -67.9 -46.6 37 State and local 29.0 26.7 29.1 23.9 28.6 37.1 36.9 38 Capital grants received by the United States, net .0 1.1 1.1 1.1 1.1 1.1 1.1 39 Gross investment 361.6 414.1 401.2 392.5 405.0 400.1 446.0 40 Gross private domestic 375.3 415.8 395.3 390.9 377.1 397.7 437.1 41 Net foreign -13.8 - 1.7 5.9 1.7 27.8 2.3 8.8 42 Statistical discrepancy 3.0 3.4 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • October 1981 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted. 1980 1981 Item credits or debits 11997788 11997799 11998800 02 03 Q4 Qlr 02^ 1 Balance on current account -14.075 1.414 3.723 -545 4.975 1.390 3,263 1,073 2 Not seasonally adjusted 905 1.149 3.244 3,546 2,369 3 Merchandise trade balance2 -33.759 -27.346 -25,342 -6.744 -2.902 -5.570 -4.677 -6,914 4 Merchandise exports 142.054 184.473 223,966 55.667 56,252 57.149 61.098 60,477 5 Merchandise imports -175.813 -211.819 - 249,308 -62.411 -59.154 -62,719 -65,775 -67,391 6 Military transactions, net 738 -1.947 -2.515 -427 -455 -715 -568 -586 7 Investment income, net3 21.400 33.462 32,762 6,518 8.154 8,257 9.053 8.647 8 Other service transactions, net 2,613 2.839 5.874 1,440 1.681 1.762 982 1,456 9 Remittances, pensions, and other transfers -1.884 -2.057 -2.397 -545 -591 -720 -550 -536 10 U.S. government grants (excluding military) -3,183 -3.536 -4.659 -787 -912 -1.624 -977 -994 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -4.644 -3.767 -5.165 -1.187 -1.427 -1.094 -1,395 -1,475 12 Change in U.S. official reserve assets (increase, -) 732 -1.132 -8.155 502r -1.109 -4.279 -4,529 -905 13 Gold -65 -65 0 0 0 0 0 0 14 Special drawing rights (SDRs) 1.249 -1.136 -16 112r -261 1,285 -1,441 -23 15 Reserve position in International Monetary Fund 4.231 -189 - 1.667 -99 -294 -1.240 -707 -780 16 Foreign currencies -4.683 257 -6,472 489 -554 -4.324 -2.381 -102 17 Change in U.S. private assets abroad (increase, -)3 -57.158 -57,739 -71.456 -24.152 - 16.766 -22.622 -16.473 -19.141 18 Bank-reported claims -33.667 -26.213 -46.947 -20.165 -12.440 -13.139 -11,241 -14.063 19 Nonbank-reported claims -3.853 -3,026 -2.653 92 343 -2,005 -3.192 n.a. 20 U.S. purchase of foreign securities, net -3.582 -4.552 -3.310 - 1.369 -818 -356 -488 1.451 21 U.S. direct investments abroad, net3 - 16.056 -23.948 - 18.546 -2.710 -3.851 -7.122 -1,552 -3.627 22 Change in foreign official assets in the United States (increase, +) 33.561 - 13.757 15.492 7.557r 7.686 7.712 5,503 -3,009 23 U.S. Treasury securities 23.555 -22.435 9.683 4.360r 3.769 6.911 7.242 -2.069 24 Other U.S. government obligations 666 463 2.187 250 549 587 454 536 25 Other U.S. government liabilities4 2.359 -133 636 420 80 205 -112 180 26 Other U.S. liabilities reported by U.S. banks 5.551 7.213 - 159 1.676r 1.823 -460 -2,910 -2,286 27 Other foreign official assets'5 1.4530 1,135 3.145 851 1.465 469 829 630 28 Change in foreign private assets in the United States (increase, + )• 30.187 52.703 34,769 -326 3.965 16.157 1.637 15.819 29 U.S. bank-reported liabilities 16.141 32.607 10.743 -4,509 916 7.737 -3,889 8,791 30 U.S. nonbank-reported liabilities 1.717 2.065 5.109 1.092 373 3.228 -820 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 2.178 4.820 2.679 -1,260 -254 893 1,405 701 32 Foreign purchases of other U.S. securities, net 2.254 1.334 5.384 468 241 2.240 2.454 3,450 33 Foreign direct investments in the United States, net3 7.896 11.877 10.853 3,883 2.689 2.059 2,487 2.878 34 Allocation of SDRs 0 1.139 1.152 0 0 0 1,093 0 35 Discrepancy 11.398 21.140 29.640 18.151 2.676 2.736 10.901 7,637 36 Owing to seasonal adjustments 1.355 -3.291 2,139 -340 1,221 37 Statistical discrepancy in recorded data before seasonal adjustment 11.398 21.140 29.640 16,796 5.967 597 11.241 6.416 MEMO: Changes in official assets 38 U.S. official reserve assets (increase. ~) 732 - 1.132 -8.155 502 -1.109 -4.279 -4.529 -905 39 Foreign official assets in the United States (increase. +) 31.202 - 13.624 14,856 7.137 7.606 7.507 5.615 -3.189 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 4.617 4.115 1.024 5.446 2.635 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 236 305 635 155 125 211 192 207 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 A55 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1981 IItteemm 11997788 11997799 11998800 Feb. Mar Apr. May June July Aug. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 143,682 181,860 220,626 19,764 21,434 19,818 18,869 19,870 19,264 19,050 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 174,759 209,458 244,871 21,922 20,949 22,289 21,310 21,975 19,807 23,528 3 Trade balance -31,075 -27,598 -24,245 -2,158 485 -2,471 -2,441 -2,105 -542 -4,478 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 TTyyppee 11997788 11997799 11998800 Mar. Apr. May June July Aug. Sept. 1 Total1 18,650 18,956 26,756 30,410 29,693 29,395 29,582 28,870 29,265 29,716 2 Gold stock, including Exchange Stabilization Fund1 11,671 11,172 11,160 11,154 11,154 11,154 11,154 11,154 11,154 11,152 3 Special drawing rights2-3 1,558 2,724 2,610 3,913 3,712 3,652 3,689 3,717 3,739 3,896 4 Reserve position in International Monetary Fund2 1,047 1.253 2,852 3,448 3,576 3,690 3,988 4,157 4,341 4,618 5 Foreign currencies4-5 4,374 3,807 10,134 11,895 11,251 10,899 10,751 9,842 10,031 10,050 1. Gold held under earmark at Federal Reserve Banks for foreign and inter- 3. Includes allocations by the International Monetary Fund of SDRs as follows: national accounts is not included in the gold stock of the United States; see table $867 million on Jan. 1, 1970; $717 million on Jan. 1, 1971; $710 million on Jan. 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 weightedaverage 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

A56 International Statistics • October 1981 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1981 AAsssseett aaccccoouunntt 1199778811 11997799 Jan. ' Feb. ' Mar. ' Apr. ' May June July? All foreign countries 1 Total, all currencies 306,795 364,233 399,934 400,182 403,480 412,547 413,317 417,187' 422,950 433,249 2 Claims on United States 17,340 32,302 28,460 29,536 31,925 30,256 34,519 38.645 35,205 43,085 3 Parent bank 12,811 25,929 20,202 20,675 21,370 18,781 23,086 28,012 24,311 30,994 4 Other 4,529 6,373 8,258 8,861 10,555 11,475 11,433 10,633 10,894 12,091 5 Claims on foreigners 278,135 317,175 353,815 352,774 353,446 363,829 360,334 359,531' 368,657 370,938 6 Other branches of parent bank 70,338 79,661 76,834 75,809 75,666 77,726 76,917 76,224' 79,814 82,128 7 Banks 103,111 123,413 146,170 146,431 147,768 152,177 149,616 149,060' 154,748 154,843 8 Public borrowers2 23,737 26,072 27,868 27,863 28,160 28,777 28,142 27,734' 27,806 28,645 9 Nonbank foreigners 80,949 88,029 102,943 102,671 101,852 105,149 105,659 106,513' 106,289 105,322 10 Other assets 11,320 14.756 17,659 17,872 18,109 18,462 18,464 19,011r 19,088 19,226 11 Total payable in U.S. dollars 224,940 267,711 291,205 294,023 . 298,141 304,051 308,316 312,683r 320,312 330,769 12 Claims on United States 16,382 31.171 27,191 28,280 30,662 29,063 33,306 37,403 33,951 41,884 13 Parent bank 12,625 25,632 19,896 20,383 21,108 18,566 22,839 27,709 24,041 30,742 14 Other 3,757 5,539 7,295 7,897 9,554 10,497 10,467 9,694 9,910 11,142 15 Claims on foreigners 203,498 229.118 254,811 256,093 257,531 264,483 264,816 264,263' 275,198 277,354 16 Other branches of parent bank 55,408 61,525 58,360 58,867 57,959 59,903 59,590 58,711' 62,696 64,725 17 Banks 78,686 96,261 117,076 118,069 119,517 122,539 121,644 121,930' 128,114 127,552 18 Public borrowers2 19,567 21,629 23,467 23,278 23,570 24,044 23,777 23,201r 23,488 24,250 19 Nonbank foreigners 49,837 49,703 55,908 55,879 56,485 58,330 59,472 60,421' 60,900 60,827 20 Other assets 5,060 7,422 9.203 9,650 9,948 10,172 10,527 11,017' 11,163 11,531 United Kingdom 21 Total, all currencies 106,593 130,873 144,717 145,568 146,514 147,362 144,577 146,640 149,704 148,774 22 Claims on United States 5,370 11.117 7,509 7,729 9,128 9,413 8,518 10,382 9,640 9,130 23 Parent bank 4,448 9,338 5,275 5,279 6,387 6,405 5,766 7,666 7,098 6,167 24 Other 922 1.779 2.234 2,450 2,741 3,008 2,752 2,716 2,542 2,963 25 Claims on foreigners 98,137 115,123 131,142 132,077 131,426 131,871 130,062 130,200 134,102 133,626 26 Other branches of parent bank 27,830 34,291 34,760 35,288 35,523 34,648 34,704 34,834 35,914 37,035 27 Banks 45,013 51,343 58,741 59,624 59,623 59,823 57,934 57,611 60,261 59,639 28 Public borrowers2 4,522 4,919 6,688 6,624 6,630 6,933 6,848 6,720 6,811 6,822 29 Nonbank foreigners 20,772 24,570 30,953 30,541 29,650 30,467 30,576 31,035 31,116 30,130 30 Other assets 3,086 4,633 6.066 5,762 5,960 6,078 5,997 6,058 5,962 6,018 31 Total payable in U.S. dollars 75,860 94,287 99,699 101,848 103,754 103,724 102,336 104,959 108,854 107,961 32 Claims on United States 5,113 10,746 7,116 7,306 8,673 9,001 8,080 9,932 9,150 8,628 33 Parent bank 4,386 9,297 5,229 5,222 6,325 6,381 5,715 7,611 7,059 6,110 34 Other 727 1,449 1,887 2,084 2,348 2,620 2,365 2,321 2,091 2,518 35 Claims on foreigners 69,416 81,294 89,723 91,442 91.990 91,478 90,018 91,632 96,240 95,832 36 Other branches of parent bank 22,838 28.928 28,268 28,786 28,984 28,163 28,466 28,527 29,725 30,789 37 Banks 31,482 36.760 42,073 43,587 43,451 43,309 42.467 42,786 45,631 44,488 38 Public borrowers2 3,317 3.319 4,911 4,818 4,932 5,170 5,096 4,967 5,123 5,176 39 Nonbank foreigners 11,779 12.287 14,471 14,251 14,623 14,836 14,989 15,352 15,761 15,379 40 Other assets 1,331 2.247 2,860 3,100 3,091 3,245 3,238 3,395 3,464 3,501 Bahamas and Caymans 41 Total, all currencies 91,735 108,977 123,837 123,541 124,892 127,886 132,145 133,594' 135,081 145,290 42 Claims on United States 9,635 19,124 17,751 18,370 19,150 17,348 22,473 24,531 21,811 29,808 43 Parent bank 6,429 15,196 12,631 12,842 12,417 10,017 14,908 17,511 14,477 21,654 44 Other 3,206 3,928 5,120 5,528 6,733 7,331 7,565 7,020 7,334 8,154 45 Claims on foreigners 79,774 86,718 101,926 100,822 101,281 106,052 105,081 104,197' 108,478 110,584 46 Other branches of parent bank 12,904 9,689 13,342 12,974 11,996 14,022 13,107 12,235 13,569 13,788 47 Banks 33,677 43.189 54,861 54,237 55,345 57,127 57,405 57,073' 59,705 60,748 48 Public borrowers2 11,514 12,905 12,577 12,569 12,605 12,579 12,205 12,169 12,038 12,471 49 Nonbank foreigners 21,679 20,935 21,146 21.042 21,335 22,324 22,364 22,720' 23,166 23,577 50 Other assets 2,326 3,135 4,160 4,349 4,461 4,486 4,591 4,866' 4,792 4,898 51 Total payable in U.S. dollars 85,417 102,368 117,654 117,630 119,005 121,900 126,429 127,969' 129,438 139,514 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A57 3.13 Continued 1981 11997788'' 11997799 11998800 Jan.' Feb.' Mar.' Apr.' Mayr June July All foreign countries 52 Total, all currencies 306,795 364,233 399,934 400,182 403,480 412,547 413,317 417,187 422,950 433,249 53 To United States 58,012 66,686 91,039 92.468 90.737 97,544 105,646 105.343 109,313 118,104 54 Parent bank 28.654 24,530 39.246 38.700 36.452 43,040 45,299 41,039 44,327 43.069 55 Other banks in United States 12,169 13.968 14.473 13.649 13.959 14.391 15.544 16.301 16,140 17,589 56 Nonbanks 17,189 28,188 37,275 40.119 40.326 40,113 44,803 48,003 48,846 57,446 57 To foreigners 238,912 283,344 294.312 293.369 298.821 300,533 292.789 296.462 298,169 299,240 58 Other branches of parent bank 67,496 77,601 75.495 74.693 75.106 76.824 76,094 75.815 79,033 81,387 59 Banks 97,711 122,849 131.487 133.826 135.758 134,512 129.583 133.650 131,818 129.290 60 Official institutions 31,936 35,664 32,448 28.951 28.602 29.871 28,029 27.469 26.352 25,682 61 Nonbank foreigners 41,769 47,230 54,882 55.899 59.355 59,326 59,083 59.528 60.966 62.881 62 Other liabilities 9.871 14,203 14,628 14.345 13.922 14.470 14,882 15.382 15.468 15,905 63 Total payable in U.S. dollars 230,810 273,819 302,692 305,414 309,282 315,302 320,187 324,479 332,288 343,958 64 To United States 55.811 64,530 88.154 89.839 88.347 95.131 103.201 102,971 106,731 115,492 65 Parent bank 27,519 23,403 37.525 37.042 34.976 41.528 43.823 39.604 42,822 41,620 66 Other banks in United States 11.915 13.771 14.203 13.475 13.757 14,254 15.376 16,175 15,949 17,402 67 Nonbanks 16.377 27.356 36,426 39.322 39.614 39.349 44,002 47.192 47,960 56.470 68 To foreigners 169,927 201.476 206.336 207,278 212.328 211.253 207.396 211.915 215,931 218,178 69 Other branches of parent bank 53.396 60,513 57.936 58.285 57.962 59.660 59.213 59.108 62,292 64.884 70 Banks 63,000 80,691 87,198 89.995 92.221 87.934 86.440 89,885 89,909 88.554 71 Official institutions 26.404 29.048 24.692 21.863 21.896 23.102 21.450 21.345 20.853 20,108 72 Nonbank foreigners 27.127 31.224 36,510 37.135 40.249 40.557 40.293 41.577 42.877 44,632 73 Other liabilities 5,072 7,813 8.202 8.297 8.607 8.918 9.590 9.593 9.626 10,288 United Kingdom 74 Total, all currencies 106,593 130,873 144,717 145,568 146,514 147,362 144,577 146,640 149,704 148,774 75 To United States 9,730 20,986 21.785 23.226 22.755 24.213 25.843 26.688 29,598 30.383 76 Parent bank 1,887 3.104 4.225 4.228 3.190 4.241 4.543 4.376 4.371 4.138 77 Other banks in United States 4,189 7,693 5.716 5.436 5.840 5.538 5,928 5.973 6,172 5.864 78 Nonbanks 3.654 10.189 11.844 13.562 13.725 14.434 15.372 16.339 19,055 20.381 79 To foreigners 93.202 104.032 117.438 117.175 118.642 117.862 113,634 114,655 115.099 113,560 80 Other branches of parent bank 12.786 12.567 15.384 15.329 14.661 15.402 15.095 14.169 14.996 15.103 81 Banks 39.917 47.620 56.262 57.672 57.916 56.441 53,842 56,209 55.923 54.351 82 Official institutions 20,963 24,202 21.412 19.199 19.591 19.743 18.390 18,508 17.197 16,352 83 Nonbank foreigners 19,536 19,643 24.380 24.975 26.474 26.276 26.307 25,769 26.983 27,754 84 Other liabilities 3,661 5,855 5.494 5.167 5.117 5.287 5.100 5.297 5.007 4,831 85 Total payable in U.S. dollars 77,030 95,449 103,440 105,610 107,671 107,909 107,139 109,209 113,427 113,247 86 To United States 9,328 20,552 21.080 22.597 22.245 23.765 25.333 26,221 28.858 29,606 87 Parent bank 1.836 3,054 4.078 4.126 3.132 4.159 4.448 4.306 4.277 4,054 88 Other banks in United States 4.101 7.651 5.626 5.343 5.757 5.506 5.854 5.919 6.094 5,768 89 Nonbanks 3.391 9,847 11,376 13.128 13.356 14.100 15.031 15.996 18.487 19,784 90 To foreigners 66.216 72.397 79.636 80.243 82.302 80.924 78.668 79,713 81.544 80,400 91 Other branches of parent bank 9,635 8.446 10.474 10.890 10.149 10.433 10.282 9.327 10.289 10,566 92 Banks 25,287 29.424 35.388 36.613 37.214 34.633 34.209 35.870 36.701 35,789 93 Official institutions 17,091 20,192 17.024 14.941 15.404 15.718 14.478 14.851 14.000 13,133 94 Nonbank foreigners 14,203 14.335 16.750 17.799 19.535 20.138 19.699 19.665 20.554 20,912 95 Other liabilities 1.486 2.500 2.724 2.770 3.124 3,220 3.138 3.275 3,025 3,241 Bahamas and Caymans 96 Total, all currencies 91,735 108,977 123,837 123,541 124,892 127,886 132,145 133,594 135,081 145,290 97 To United States 39.431 37,719 59,666 58.986 58.664 64.026 69.478 69.048 69.407 77,197 98 Parent bank 20.482 15,267 28.181 26.563 26.279 31.741 32.925 29.583 32.160 31,034 99 Other banks in United States 6,073 5.204 7.379 7.184 7.165 7.883 8.618 9.297 8,822 10,517 100 Nonbanks 12,876 17.248 24.106 25.239 25.220 24.402 27.935 30.168 28.425 35,646 101 To foreigners 50,447 68.598 61.218 61.618 63.348 60.957 59.424 61.170 62.470 64.491 102 Other branches of parent bank 16,094 20.875 17.040 17.819 18.783 17.437 17.788 17.950 19.484 20.989 103 Banks 23,104 33.631 29,895 30.052 30.369 28.752 27,213 28.846 28.326 28,056 104 Official institutions 4.208 4.866 4.361 4.204 3.663 4.403 4.079 3.666 3.685 3,934 105 Nonbank foreigners 7,041 9.226 9.922 9.543 10.533 10.365 10.344 10.708 10.975 11.512 106 Other liabilities 1.857 2.660 2.953 2.937 2.880 2.903 3.243 3.376 3.204 3,602 107 Total payable in U.S. dollars 87,014 103,460 119,657 119,295 120,712 123,785 128,235 129,811 131,120 141,241 1. In May 1978 the exemption level for branches required to report was increased. eluding 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

A58 International Statistics • October 1981 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1981 IItteemm 11997788 11997799 11998800 Mar.A Apr. May June JulyP Aug .P 1 Total1 162,775 149,697 164,576 170,193 170,213 170,599 165,403 167,069 166,918 162,158 By type 2 Liabilities reported by banks in the United States2 . 23,326 30,540 30,381 27,471 27,491 25,563 23,563 25,234 25,859 22,785 3 U.S. Treasury bills and certificates3 67,671 47,666 56,243 60,493 6600,,449933 61,670 57,858 57,719 5555,,666699 5522,,994422 U.S. Treasury bonds and notes 4 Marketable 35,894 37,590 41,455 44,808 44,808 45,303 45,625 46,605 47,402 48,832 5 Nonmarketable4 20,970 17,387 14,654 14,294 14,294 14,294 14,294 13,202 12,802 12,402 6 U.S. securities other than U.S. Treasury securities5 14,914 16,514 21,843 23,127 23,127 23,769 24,063 24,309 25,186 25,197 By area 7 Western Europe1 93,089 85,633 81,592 79,981 79,999 78,242 71,455 71,130 70,601 65,929 8 Canada 2,486 1,898 1,562 1,437 1,437 1,177 1,365 1,248 664 1,603 9 Latin America and Caribbean 5,046 6,291 5,688 6,365 6,365 5,908 5,525 6,103 5,577 5,870 10 Asia 59,004 52,978 70,782 77,169 77,171 79,255 81,015 83,123 85,741 84,536 11 Africa 2,408 2,412 4,123 4,087 4,087 4,187 3,927 3,190 2,645 2,840 12 Other countries6 742 485 829 1,154 1,154 1,830 2,116 2,275 1,690 1,380 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 IItteemm 11997777 11997788 11997799 Sept. Dec. Mar. A June? 1 Banks' own liabilities 925 2,406 1,918 2,754 3,748 3,268 3,262 3,031 2 Banks' own claims1 2,356 3,671 2,419 3,203 4,206 4,238 4,245 3,673 3 Deposits 941 1,795 994 1,169 2,507 1,697 1,758 2,052 4 Other claims 1,415 1,876 1,425 2,035 1,699 2,542 2,488 1,621 5 335588 558800 559955 996622 444444 444444 334477 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 authorities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A59 3.16 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1981 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11997788 11997799 11998800 Mar.A Apr. May June July Aug.p 1 All foreigners 166,842 187,521 205,295 203,651 205,284 213,152 213,475 208,799r 212,942 207,933 2 Banks' own liabilities 78,661 117.196 124,789 120,217 120,425 128.115 132.154 127,947r 131.608 131,132 3 Demand deposits 19,218 23,303 23,462 21,308 21,216 22.644 22,193 23.174r 21.401 22.073 4 Time deposits1 12,427 13.623 15.076 16,272 16,304 15,719 16,046 16.641' 16.437 17.268 5 Other2 9,705 16.453 17.581 15,947 16.199 14,789 12,359 14.090 13,341 11,262 6 Own foreign offices3 37,311 63,817 68.670 66,690 66,707 74.963 81,556 74,042 80.428 80,529 7 Banks' custody liabilities',801 88,181 70.325 80.506 83,433 84,859 85,037 81,320 80,852r 81,334 8 U.S. Treasury bills and certificates5 68,202 48.573 57.595 62,259 62.342 63.273 59.597 59,745r 57,559 55.051 9 Other negotiable and readily transferable instruments6 17,472 19,396 20,079 18,226 18.207 17,886 17.392 17.023r 17,422 17,408 10 Other 2.507 2.356 2,832 2,948 4.310 3,878 4,331 4,084 6.353 4.343 11 Nonmonetary international and regional organizations7 2,607 2,356 2,342 1,854 1,854 1,804 1,813 1,777 1,782 1,635 12 Banks' own liabilities 906 714 442 293 293 655 509 357 s4 363 436 13 Demand deposits 330 260 146 126 126 178 147 224 222 233 14 Time deposits1 84 151 85 67 67 81 80 75 75 59 15 Other2 492 303 211 100 100 396 281 58 65 145 16 Banks' custody liabilities4 1,701 1,643 1,900 1,561 1.561 1,149 1,304 1.420 1.419 1,199 17 U.S. Treasury bills and certificates 201 102 254 333 333 63 213 289 247 84 18 Other negotiable and readily transferable instruments6 1,499 1.538 1,646 1.228 1.228 1.086 1,091 1.132 1,172 1.115 19 Other 1 2 0 0 0 0 0 0 0 0 20 Official institutions8 90,742 78,206 86,624 87,963 87,983 87,233 81,421 82,953 81,529 75,727 21 Banks' own liabilities 12,165 18,292 17,826 16,200 16.220 14,688 13,466 15.815 14,455 13,451 22 Demand deposits 3,390 4,671 3,771 3,338 3.232 3.768 3.444 3.975 3,134 3,714 23 Time deposits' 2,560 3,050 3,612 2,920 2,938 2.412 2,642 2.563 2,085 2,016 24 Other2 6,215 10,571 10.443 9,941 10,050 8,508 7,381 » 9.277 9,236 7,720 25 Banks' custody liabilities4 78.577 59.914 68,798 71.763 71.763 72.545 67,955 67.138 67.074 62,277 26 U.S. Treasury bills and certificates5 67,415 47.666 56,243 60,492 60,492 61,670 57.858 57.719 55,669 52,942 27 Other negotiable and readily transferable instruments6 10,992 12.196 12,501 11,080 11.080 10,790 10,014 9.346 9.338 9,220 28 Other 170 52 54 191 191 84 83 73 2,067 115 29 Banks9 57,423 88,316 96,415 93,018 94,338 102,542 108,542 101,464r 107,219 107,307 30 Banks' own liabilities 52,626 83,299 90.456 86,649 86,620 95,096 100.442 93.250r 98,596 98,526 31 Unaffiliated foreign banks 15,315 19.482 21,786 19,958 19.914 20.133 18.886 19.208r 18.168 17.997 32 Demand deposits 11,257 13.285 14,188 12,585 12,588 13.493 13,394 13.628r 12.929 13,255 33 Time deposits' 1,429 1.667 1,703 2.324 2,305 1,549 1,685 1.728 1,573 1,722 34 Other2 2,629 4.530 5,895 5,049 5,021 5,091 3,808 3.852 3.666 3,019 35 Own foreign offices3 37,311 63.817 68,670 66,690 66,707 74.963 81,556 74.042 80.428 80,529 36 Banks' custody liabilities4 4,797 5.017 5,959 6,369 7.717 7.446 8,100 8.214' 8,623 8.781 37 U.S. Treasury bills and certificates 300 422 623 826 827 839 945 1.170' 1,037 1.182 38 Other negotiable and readily transferable instruments6 2,425 2.415 2,748 2,928 2.913 2.932 3.053 3,178r 3,459 3,727 39 Other 2,072 2,179 2,588 2.615 3.977 3,675 4,102 3,866 4,127 3,872 40 Other foreigners 16,070 18,642 19,914 20,816 21,109 21,573 21,698 22,605r 22,412 23,264 41 Banks' own liabilities 12,964 14.891 16,065 17,076 17,291 17.676 17.737 18.525 18,194 18,719 42 Demand deposits 4,242 5.087 5,356 5,259 5.270 5,205 5,209 5.346 5.116 4,871 43 Time deposits 8,353 8.755 9.676 10,961 10,995 11.677 11,640 12.275 12.704 13,471 44 Other2 368 1.048 1,033 856 1,027 794 889 903r 375 377 45 Banks' custody liabilities4 3,106 3.751 3,849 3.740 3.817 3,897 3,961 4,080r 4,218 4,545 46 U.S. Treasury bills and certificates 285 382 474 607 690 701 581 568' 606 843 47 Other negotiable and readily transferable instruments6 2,557 3,247 3,185 2,991 2.986 3.078 3,235 3.367 3,453 3,346 48 Other 264 123 190 141 141 119 145 144 159 356 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 11,007 10.984 10,745 9,893 9.887 9,549 9,653 10.176 9.831 9,441 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

A60 International Statistics • October 1981 3.16 Continued 1981 AArreeaa aanndd ccoouunnttrryy 11997788 11997799 11998800 Mar.A Apr. May June July Aug.P 1 Total 166,842 187,521 205,295 203,651 205,284 213,152 213,475 208,799 r 212,942 207,933 2 Foreign countries 164,235 185,164 202,953 201,796 203,430 211,348 211,662 207,022r 211,160 206,298 3 Europe 85,172 90,952 90.897 91,338 92,495 89,934 87,197 86,789r 84,967 8811,,662277 4 Austria 513 413 523 522 522 523 493 540 609 668888 5 Belgium-Luxembourg 2,550 2,375 4,019 4,698 4,698 4,926 5,469 5,056r 4,672 4,243 6 Denmark 1,946 1,092 497 463 461 434 526 415 430 239 7 Finland 346 398 455 332 332 328 280 305 294 220 8 France 9,214 10,433 12.125 12,959 12,950 13,102 11,367 11,515 11,036 9,290 9 Germany 17,283 12,935 9.973 12,299 12,305 12,489 9,472 9,631r 9,070 7,295 10 Greece 826 635 670 593 593 574 513 507 533 492 11 Italy 7,739 7,782 7,572 3,446 3,453 3,600 3,014 4,620 6,140 6,374 12 Netherlands 2,402 2,337 2,441 2,324 2,328 2,314 2,176 2,133 1,790 1,750 13 Norway 1,271 1,267 1,344 1,575 1,575 1,477 1,648 1,743 1,288 1,227 14 Portugal 330 557 374 356 356 309 336 454 447 460 15 Spain 870 1,259 1,500 1,631 1,631 1,352 1,678 1,199 1,329 1,409 16 Sweden 3,121 2,005 1,737 2,408 2,408 2,784 2,501 2,180 1.963 1,667 17 Switzerland 18,225 17,954 16,689 16,844 16,856 15,739 15,810 15,844r 16,141 16,244 18 Turkey 157 120 242 235 235 209 182 194 356 208 19 United Kingdom 14,272 24,700 22,680 24,715 25,836 24,343 25,485 24,428 22,968 24,378 20 Yugoslavia 254 266 681 202 202 238 270 312 408 343 21 Other Western Europe1 3,440 4,070 6,939 5,338 5,356 4,893 5,604 5,323 5,166 4,753 22 U.S.S.R 82 52 68 47 47 37 85 41 46 34 23 Other Eastern Europe2 330 302 370 352 350 264 288 351r 280 311 24 Canada 6,969 7,379 10.031 8,570 8,610 10,338 11,222 10,208r 9,192 10,043 25 Latin America and Caribbean 31,638 49,686 53,170 50,818 51,178 58,415 60,096 56,156r 63,904 63,540 26 Argentina 1,484 1,582 2,132 1,917 1,917 1,919 1,800 1,991 1,980 2,043 27 Bahamas 6,752 15,255 16,381 14,183 14,356 18,815 20,154 17,760 24,462 24,120 28 Bermuda 428 430 670 915 913 634 802 698 634 688 29 Brazil 1,125 1,005 1,216 1,151 1,148 1,345 1,347 1,412 1,145 1,282 30 British West Indies 5,974 11,138 12,766 11,566 11,566 13,995 14,892 12,834 14,022 13,237 31 Chile 398 468 460 549 549 539 526 508 566 538 32 Colombia 1,756 2,617 3,077 2,970 2,970 2,940 2,828 2,827 2,784 2,708 33 Cuba 13 13 6 6 6 8 7 7 7 7 34 Ecuador 322 425 371 511 511 352 391 463 392 355 35 Guatemala3 416 414 367 446 446 416 413 399 412 399 36 Jamaica3 52 76 97 94 94 141 132 80 122 290 37 Mexico 3,467 4,185 4,547 4,755 4,756 5,332 4,948 5,351 5,518 6,248 38 Netherlands Antilles 308 499 413 436 476 442 438 495 480 676 39 Panama 2,967 4,483 4,718 4,297 4,445 4,723 4,847 4,615 4,982 4,590 40 Peru 363 383 403 341 342 354 334 450 363 404 41 Uruguay 231 202 254 306 306 284 334 322 243 267 42 Venezuela 3,821 4,192 3,170 4,218 4,220 4,178 3,924 3,548 3,666 3,616 43 Other Latin America and Caribbean 1,760 2,318 2.123 2,158 2,158 1,997 1,979 2,398 2,124 2,072 44 36,492 33,005 42,420 44,992 45,068 45,944 46,156 47,279 47,942 4466,,110011 China 45 Mainland 67 49 49 60 60 46 54 102 92 74 46 Taiwan 502 1,393 1,662 1,822 1,822 1,798 1,781 1,936 1,997 2,178 47 Hong Kong 1,256 1,672 2,548 2,440 2,438 2,468 3,001 3,151 3,446 3,962 48 India 790 527 416 576 576 442 458 408 394 455 49 Indonesia 449 504 730 1,063 1,063 944 707 582 1,309 732 50 Israel 688 707 883 582 582 444 404 478 387 477 51 Japan 21,927 8,907 16.281 19,367 19,442 19,450 19,803 19,563 19,475 19,764 52 Korea 795 993 1,528 1,380 1,380 1,381 1,397 1,330 1,252 1,319 53 Philippines 644 795 919 1,115 1,115 1,213 802 1,049 996 872 54 Thailand 427 277 464 250 250 391 338 422 436 371 55 Middle-East oil-exporting countries4 7,534 15,300 14,453 14,205 14,205 15,119 14,728 15,129 14,794 12,292 56 Other Asia 1,414 1,879 2,487 2,132 2,134 2,247 2,684 3,129 3,365 3,606 57 Africa 2,886 3,239 5,187 4,553 4.553 4,529 4,513 3,907r 3,168 3,196 58 Egypt 404 475 485 333 333 336 308 289 293 355 59 Morocco 32 33 33 33 33 34 54 41 77 59 60 South Africa 168 184 288 322 322 330 360 253 257 296 61 Zaire 43 110 57 28 28 28 24 181 84 41 62 Oil-exporting countries5 1,525 1,635 3,540 3,084 3,084 3,135 3,004 2,388 1,715 1,703 63 Other Africa 715 804 783 753 753 666 764 755r 743 741 64 Other countries 1,076 904 1.247 1,526 1,526 2,189 2,477 2,683 1,987 1,792 65 Australia 838 684 950 1,287 1,287 1,913 2,276 2,398 1,770 1,568 66 All other 239 220 297 240 240 275 201 285 217 224 67 Nonmonetary international and regional organizations 22,,660077 22,,335566 22,,334422 1,854 1,854 1,804 1,813 1,777 1,782 1,635 68 International 1,485 1,238 1,156 754 754 795 781 747 699 524 69 Latin American regional 808 806 890 768 768 693 729 722 765 747 70 Other regional6 314 313 296 333 333 317 303 307 318 364 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. A 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

Nonbank-Reported Data A61 3.17 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1981 AArreeaa aanndd ccoouunnttrryy 11997788 11997799 11998800 Mar.A Apr. May June July Aug.P 1 Total 115,545 133,943 172,702 179,535 181,551 184,769 186,704 197,312' 196,941 198,413 2 Foreign countries 115,488 133,906 172,624 179,461 181,477 184,700 186,657 197,264r 196,881 198,362 3 Europe 24,201 28,388 32.155 34,136 35.098 34.265 34.305 37,338' 35,153 35,063 4 Austria 140 284 236 174 174 151 149 166 157 185 5 Belgium-Luxembourg 1.200 1,339 1.621 2,568 2.573 2.155 2,012 2.796 2,087 2,373 6 Denmark 254 147 127 119 119 141 162 125 132 161 7 Finland 305 202 460 319 326 327 299 365 343 352 8 France 3,735 3.322 2.958 3,838 3,911 3.696 3.164 3,209 2861 3,078 9 Germany 845 1.179 948 1,074 1.122 1.038 1.140 1.099 1,259 1,143 10 Greece 164 154 256 210 210 334 242 249 292 214 11 Italy 1,523 1,631 3.364 3.052 3.055 2.926 2.981 3,879' 3,923 3,996 12 Netherlands 677 514 575 548 560 530 584 627 469 581 13 Norway 299 276 227 223 223 180 173 172 167 249 14 Portugal 171 330 331 247 247 242 263 353 389 350 15 Spain 1.120 1.051 993 1.494 1,497 1.601 1.720 1.769 1,726 1,801 16 Sweden 537 542 783 868 884 975 996 794 730 672 17 Switzerland 1,283 1.165 1.446 1.313 1.375 1.263 1,698 1.690 1,871 1,708 18 Turkey 300 149 145 136 136 132 172 147 137 159 19 United Kingdom 10,147 13.795 14.917 15,093 15.827 15.652 15,707 16.675 15,437 14,835 20 Yugoslavia 363 611 853 871 872 878 904 988 992 948 21 Other Western Europe1 122 175 179 176 176 211 147 182 160 200 22 U.S.S.R 360 268 281 265 265 266 254 302 245 252 23 Other Eastern Europe2 657 1.254 1.457 1.548 1,548 1.569 1.539 1.752r 1,776 1,808 24 Canada 5.152 4.143 4.810 5.017 5.297 6.091 6,038 7.024 7,839 6,373 25 Latin America and Caribbean 57,565 67,993 92.992 96.364 96.829 98.594 99.731 103,375r 105,245 108,300 26 Argentina 2,281 4.389 5.689 5.672 5.672 5.881 5,659 5,822 5,742 5,702 27 Bahamas 21.555 18.918 29.419 34.139 34.285 33.926 33,202 34.753' 35,541 36,650 28 Bermuda 184 496 218 324 324 401 481 404' 411 340 29 Brazil 6,251 7.713 10.496 10.213 10.269 9,924 9,921 10,014' 9,735 10,208 30 British West Indies 9,694 9.818 15.663 14,236 14.320 16.143 17.165 18,313' 18,001 17,649 31 Chile 970 1,441 1.951 1,876 1.876 2.028 2.019 2,074 2,203 2,321 32 Colombia 1,012 1.614 1.752 1.467 1,467 1,457 1.580 1.533 1,480 1,429 33 Cuba 0 4 3 3 3 4 3 3 7 14 34 Ecuador 705 1,025 1.190 1.257 1,257 1.229 1.239 1.285 1,306 1,317 35 Guatemala3 94 134 137 208 208 98 104 104 94 114 36 Jamaica3 40 47 36 77 77 34 35 38 39 40 37 Mexico 5,479 9,099 12.595 12,407 12.447 13.242 13,351 14.066' 15,560 17,391 38 Netherlands Antilles 273 248 821 807 921 809 756 874 933 889 39 Panama 3,098 6.041 4.974 5,640 5.643 5,477 6,054 6,210 6,029 5,999 40 Peru 918 652 890 794 794 853 873 818' 802 795 41 Uruguay 52 105 137 10 3 103 105 100 94 102 107 42 Venezuela 3.474 4,657 5.438 5,441 5.458 5.325 5,438 5,295 5,436 5,529 43 Other Latin America and Caribbean 1,485 1.593 1,583 1,702 1.705 1.658 1.751 1.675' 1.823 1,805 44 25.362 30.730 39.140 40.636 40,941 42.439 43.006 46.027' 45,004 44,857 China 45 Mainland 4 35 195 201 201 202 204 205 188 186 46 Taiwan 1.499 1.821 2.469 2,413 2.413 2,568 2.413 2.471 2,380 2,544 47 Hong Kong 1,479 1,804 2.247 2,330 2.330 2,476 2.898 3,328 3,208 3,347 48 India 54 92 142 127 127 134 170 132 106 133 49 Indonesia 143 131 245 288 288 299 268 257' 271 256 50 Israel 888 990 1.172 944 981 1,014 1.186 1,309 1.178 1,108 51 Japan 12,646 16.911 21.361 23,710 23.977 23.862 24.209 25,995' 25.954 25,360 52 Korea 2,282 3.793 5.697 5.823 5.823 6.024 6,014 6,678 6,426 6,483 53 Philippines 680 737 989 605 605 994 1,024 1,192 1,194 1,400 54 Thailand 758 933 876 835 835 829 698 661' 551 496 55 Middle East oil-exporting countries4 3,125 1,548 1,494 1.486 1.486 1,909 1.474 1.617 1,288 1,466 56 Other Asia 1,804 1.934 2.252 1.874 1.874 2.130 2.448 2.181' 2,261 2,079 57 Africa 2.221 1,797 2.377 2.271 2.271 2,272 2,536 2,422' 2,519 2,715 58 Egypt 107 114 151 137 137 124 126 155 128 148 59 Morocco 82 103 223 153 153 118 87 71 88 204 6(1 South Africa 860 445 370 534 534 562 668 658 688 787 61 Zaire 164 144 94 111 111 108 98 98 100 87 62 Oil-exporting countries5 452 391 805 589 589 650 805 672 726 713 63 Other 556 600 734 746 746 710 752 769 789 777 64 Other countries 988 855 1,150 1.038 1.041 1.038 1.040 1.078 1,121 1,054 65 Australia 877 673 859 870 874 922 898 939 988 952 66 All other 111 182 290 167 167 116 142 139 133 102 67 Nonmonetary international and regional organizations6 56 36 78 74 74 69 47 48 60 51 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

A62 International Statistics • October 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 TTyyppee ooff ccllaaiimm 11997788 11997799 11998800 Mar.A Apr. May June July Aug.P 1 Total 111111122222226666666,,,,,,,777777788888887777777 111111155555554444444,,,,,,,000000033333330000000 111111199999998888888,,,,,,,888888800000007777777 222222211111110000000,,,,,,,555555588888886666666 222222211111113333333,,,,,,,222222222222220000000 222222233333331111111,,,,,,,000000077777776666666 2 Banks' own claims on foreigners 111111111111115555555,,,,,,,555555544444445555555 111111133333333333333,,,,,,,999999944444443333333 111111177777772222222,,,,,,,777777700000002222222 111111177777779999999,,,,,,,555555533333335555555 111111188888881111111,,,,,,,555555555555551111111 184,769 186,704 111111199999997777777,,,,,,,333333311111112222222 196,941 198,413 3 Foreign public borrowers 11111110000000,,,,,,,333333344444446666666 11111115555555,,,,,,,999999933333337777777 22222220000000,,,,,,,999999944444444444444 22222220000000,,,,,,,888888833333336666666 22222221111111,,,,,,,000000022222227777777 21,401 21,529 22222222222222,,,,,,,888888822222225555555 23,970 24,267 4 Own foreign offices' 44444441111111,,,,,,,666666600000005555555 44444447777777,,,,,,,444444422222228888888 66666665555555,,,,,,,000000088888884444444 77777774444444,,,,,,,666666666666660000000 77777774444444,,,,,,,777777711111117777777 76,632 75,326 88888880000000,,,,,,,222222222222228888888 80,669 79,924 5 Unaffiliated foreign banks 44444440000000,,,,,,,444444488888883333333 44444440000000,,,,,,,999999922222227777777 55555550000000,,,,,,,222222211111115555555 44444446666666,,,,,,,555555500000002222222 44444448888888,,,,,,,111111100000004444444 48,670 51,927 55555555555555,,,,,,,222222211111112222222 54,367 55,436 6 Deposits 5555555,,,,,,,444444422222228888888 6666666,,,,,,,222222277777774444444 8888888,,,,,,,222222255555554444444 7777777,,,,,,,222222266666663333333 8888888,,,,,,,222222200000005555555 7,831 10,441 11111111111111,,,,,,,333333344444442222222 11,351 11,655 7 Other 33333335555555,,,,,,,000000055555554444444 33333334444444,,,,,,,666666655555554444444 44444441111111,,,,,,,999999966666662222222 33333339999999,,,,,,,222222233333339999999 33333339999999,,,,,,,888888899999998888888 40,839 41,486 44444448888888,,,,,,,888888877777770000000 43,016 43,781 8 All other foreigners 22222223333333,,,,,,,111111111111111111111 22222229999999,,,,,,,666666655555550000000 33333336666666,,,,,,,444444455555559999999 33333337777777,,,,,,,555555533333337777777 33333337777777,,,,,,,777777700000003333333 38,066 37,921 33333339999999,,,,,,,000000044444447777777 37,935 38,786 11111111111111,,,,,,,222222244444443333333 22222220000000,,,,,,,000000088888888888888 22222226666666,,,,,,,111111100000006666666 33333331111111,,,,,,,000000055555552222222 33333331111111,,,,,,,666666666666669999999 33333333333333,,,,,,,777777766666664444444 444444488888880000000 999999955555555555555 888888888888885555555 333333366666669999999 888888855555552222222 777777744444443333333 1111 NNeeggoottiiaabbllee aanndd rreeaaddiillyy ttrraannssffeerraabbllee iinnssttrruummeennttss33 ...... 5555555,,,,,,,333333399999996666666 11111113333333,,,,,,,111111100000000000000 11111115555555.......555555577777774444444 11111119999999,,,,,,,999999933333330000000 22222220000000,,,,,,,000000066666664444444 22222223333333,,,,,,,555555511111114444444 5555555,,,,,,,333333366666666666666 6666666,,,,,,,000000033333332222222 9999999,,,,,,,666666644444448888888 11111110000000,,,,,,,777777755555552222222 11111110000000,,,,,,,777777755555553333333 9999999,,,,,,,555555500000007777777 11111115555555,,,,,,,000000033333330000000 11111118888888,,,,,,,000000022222221111111 22222222222222,,,,,,,777777711111114444444 22222224444444,,,,,,,444444455555552222222 22222224444444,,,,,,,444444455555552222222 22222227777777,,,,,,,444444455555557777777 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States . 13,558 22,042 24,100 30,403 30,403 34,267 34,693 32,828 37,182 n.a. 1. U.S. banks: includes amounts due from own foreign branches and foreign 4. Data for March 1978 and for period before that are outstanding collections subsidiaries consolidated in "Consolidated Report of Condition" filed with bank only. regulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign 5. Includes demand and time deposits and negotiable and nonnegotiable certifbanks: principally amounts due from head office or parent foreign bank, and foreign icates of deposit denominated in U.S. dollars issued by banks abroad. For descripbranches, agencies, or wholly owned subsidiaries of head office or parent foreign tion of changes in data reported by nonbanks, see July 1979 BULLETIN, p. 550. bank. AData 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 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa Dec. Dec. Sept. Dec. Mar.A June? 1 Total 73,635 86,181 99,022 106,857 104,789 106,513 116,251 By borrower 2 Maturity of 1 year or less' 58,345 65,152 76,231 82,665 80,855 82,636 90,819 3 Foreign public borrowers 4,633 7,233 8,935 10,036 10,519 10,630 11,619 4 All other foreigners 53,712 57,919 67,296 72,628 70,336 72,005 79,200 5 Maturity of over 1 year1 15,289 21,030 22,791 24,193 23,934 23,877 25,431 6 Foreign public borrowers 5,395 8,371 9,722 10,152 10,158 10,244 11,012 7 All other foreigners 9,894 12,659 13,069 14,041 13,775 13,634 14,419 By area Maturity of 1 year or less' 8 Europe 15,169 15,235 16,940 18,762 17,306 18,261 20,718 9 Canada 2,670 1,777 2,166 2,723 2,358 2,621 3,196 10 Latin America and Caribbean 20,895 24,928 28,097 32,034 30,844 31,096 32,911 11 17,545 21,641 26,876 26,748 28,001 28,305 31,448 12 Africa 1,4% 1,077 1,401 1,757 1,624 1,624 1,770 13 All otheT2 569 493 751 640 722 729 776 Maturity of over 1 year' 14 Europe 3,142 4,160 4,705 5,118 5,698 5,578 6,277 15 Canada 1,426 1,317 1,188 1,448 1,184 1,200 1,316 16 Latin America and Caribbean 8,464 12,814 14,187 15,075 14,768 14,870 15,448 17 1,407 1,911 2,014 1,865 1,585 1,530 1,680 18 Africa 637 655 567 507 531 531 551 19 All other2 214 173 130 179 168 167 159 1. Remaining time to maturity. A Data in the two columns for this month differ because of changes in reporting 2. Includes nonmonetary international and regional organizations. 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 A63 3.20 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1 Billions of dollars, end of period 1979 1980 1981 AArreeaa oorr ccoouunnttrryy 11997777 1199778822 June Sept. Dec. Mar. June Sept. Dec. Mar.'' June'' 1 Total 240.0 266.2 275.6 294.0 303.8 308.5 328.5 338.7 350.2 365.2 380.6 2 G-10 countries and Switzerland 116.4 124.7 125.2 135.7 138.4 141.2 154.2 158.7 161.5 165.6 167.7 3 Belgium-Luxembourg 8.4 9.0 9.7 10.7 11.1 10.8 13.1 13.5 12.9 13.4 14.2 4 France 11.0 12.2 12.7 12.0 11.7 12.0 14.0 13.9 14.0 14.3 14.7 5 Germany 9.6 11.3 10.8 12.8 12.2 11.4 12.7 12.9 11.5 12.5 12.1 6 Italy 6.5 6.7 6.1 6.1 6.4 6.2 6.9 7.2 8.2 7.6 8.4 7 Netherlands 3.5 4.4 4.0 4.7 4.8 4.3 4.5 4.4 4.4 4.5 4.1 8 Sweden 1.9 2.1 2.0 2.3 2.4 2.4 2.7 2.8 2.9 3.2 3.1 9 Switzerland 3.6 5.3 4.7 5.0 4.7 4.3 3.3 3.4 4.0 4.0 5.2 10 United Kingdom 46.5 47.3 50.3 53.7 56.4 57.6 64.3 66.6 68.7 68.3 66.2 11 Canada 6.4 6.0 5.5 6.0 6.3 6.9 7.2 7.7 8.4 8.5 10.8 12 Japan 18.8 20.6 19.5 22.3 22.4 25.4 25.5 26.1 26.5 29.3 28.9 13 Other developed countries 18.6 19.4 18.2 19.7 19.9 18.8 20.3 20.6 21.3 23.1 24.8 14 Austria 1.3 1.7 1.8 2.0 2.0 1.7 1.8 1.8 1.9 1.8 2.1 15 Denmark 1.6 2.0 1.9 2.0 2.2 2.1 2.2 2.2 2.3 2.4 2.3 16 Finland 1.2 1.2 1.1 1.2 1.2 1.1 1.3 1.2 1.4 1.3 1.3 17 Greece 2.2 2.3 2.2 2.3 2.4 2.4 2.5 2.6 2.8 2.7 3.0 18 Norway 1.9 2.1 2.1 2.3 2.3 2.4 2.4 2.4 2.6 2.8 2.8 19 Portugal .6 .6 .5 .7 .7 .6 .6 .7 .6 .6 .8 20 Spain 3.6 3.5 3.0 3.3 3.5 3.5 3.9 4.2 4.0 5.1 5.7 21 Turkey 1.5 1.5 1.4 1.4 1.4 1.4 1.4 1.3 1.5 1.5 1.4 22 Other Western Europe .9 1.3 .9 1.5 1.4 1.4 1.6 1.7 1.7 1.8 1.8 23 South Africa 2.4 2.0 1.8 1.7 1.3 1.1 1.5 1.2 1.1 1.5 1.9 24 Australia 1.4 1.4 1.4 1.3 1.3 1.2 1.2 1.2 1.3 1.4 1.7 Z5 OPEC countries3 17.6 22.7 22.7 23.4 22.9 21.8 20.9 21.3 22.8 21.5 22.2 26 Ecuador 1.1 1.6 1.6 1.6 1.7 1.8 1.8 1.9 2.1 2.0 2.0 27 Venezuela 5.5 7.2 7.6 7.9 8.7 7.9 7.9 8.5 9.1 8.3 8.7 28 Indonesia 2.2 2.0 1.9 1.9 1.9 1.9 1.9 1.9 1.8 2.1 2.1 29 Middle East countries 6.9 9.5 9.0 9.2 8.0 7.8 6.9 6.6 6.9 6.5 6.8 30 African countries 1.9 2.5 2.6 2.8 2.6 2.5 2.5 2.4 2.8 2.6 2.6 31 Non-OPEC developing countries 48.7 52.6 56.0 58.9 62.9 63.7 67.4 72.8 77.0 81.8 84.6 Latin America 32 Argentina 2.9 3.0 3.5 4.1 5.0 5.5 5.6 7.6 7.9 9.4 8.5 33 Brazil 12.7 14.9 15.1 15.1 15.2 15.0 15.3 15.8 16.2 16.7 17.3 34 Chile .9 1.6 1.8 2.2 2.5 2.5 2.7 3.2 3.7 4.0 4.7 35 Colombia 1.3 1.4 1.5 1.7 2.2 2.1 2.2 2.4 2.6 2.4 2.5 36 Mexico 11.9 10.8 10.7 11.4 12.0 12.1 13.6 14.4 15.9 17.0 18.1 37 Peru 1.9 1.7 1.4 1.4 1.5 1.3 1.4 1.5 1.8 1.7 1.7 38 Other Latin America 2.6 3.6 3.3 3.6 3.7 3.6 3.6 3.9 3.9 4.8 3.8 Asia China 39 Mainland .0 .0 .1 .1 .1 .1 .1 .1 .2 .2 .2 40 Taiwan 3.1 2.9 3.3 3.5 3.4 3.6 3.8 4.1 4.2 4.4 4.7 41 India .3 .2 .2 .2 .2 .2 .2 .2 .3 .3 .3 42 Israel .9 1.0 .9 1.0 1.3 .9 1.2 1.1 1.5 1.3 1.8 43 Korea (South) 3.9 3.9 5.0 5.3 5.4 6.4 7.1 7.3 7.1 7.7 8.7 44 Malaysia4 .7 .6 .7 .7 .9 .8 .9 .9 1.0 1.0 1.4 45 Philippines 2.5 2.8 3.7 3.7 4.2 4.4 4.6 4.8 4.9 4.8 5.2 46 Thailand 1.1 1.2 1.4 1.6 1.5 1.4 1.5 1.5 1.4 1.5 1.5 47 Other Asia .4 .2 .4 .4 .5 .5 .5 .5 .6 .5 .7 Africa 48 Egypt .3 .4 .7 .6 .6 .7 .7 .7 .8 .8 .7 49 Morocco .5 .6 .5 .5 .6 .5 .5 .6 .7 .6 .5 50 Zaire .3 .2 .2 .2 .2 .2 .2 .2 .2 .4 .2 51 Other Africa5 .7 1.4 1.5 1.6 1.7 1.7 1.8 2.0 2.0 2.1 2.1 52 Eastern Europe 6.3 6.9 6.7 7.2 7.3 7.3 7.2 7.3 7.4 7.7 7.8 53 U.S.S.R 1.6 1.3 .9 .9 .7 .6 .5 .5 .4 .4 .5 54 Yugoslavia 1.1 1.5 1.7 1.8 1.8 1.9 2.1 2.1 2.3 2.4 2.5 55 Other 3.7 4.1 4.1 4.6 4.8 4.9 4.5 4.7 4.6 4.9 4.9 56 Offshore banking centers 26.1 31.0 37.0 38.6 40.4 42.6 44.3 44.5 46.6 50.8 57.8 57 Bahamas 9.9 10.4 14.4 13.0 13.7 13.9 13.7 13.1 13.3 13.6 17.2 58 Bermuda .6 .7 .7 .7 .8 .6 .6 .6 .6 .7 .9 59 Cayman Islands and other British West Indies 3.7 7.4 7.4 9.5 9.4 11.3 9.8 10.1 10.6 11.3 11.9 60 Netherlands Antilles .7 .8 1.0 1.1 1.2 .9 1.2 1.3 2.1 2.1 2.4 61 Panama6 3.1 3.0 3.8 3.4 4.3 4.9 5.6 5.6 5.4 6.3 6.8 62 Lebanon .2 .1 .1 .2 .2 .2 .2 .2 .2 .2 .2 63 Hong Kong 3.7 4.2 4.9 5.5 6.0 5.7 6.9 7.5 8.1 8.4 10.2 64 Singapore 3.7 3.9 4.2 4.9 4.5 4.7 5.9 5.6 5.9 7.2 8.0 65 Others7 .5 .5 .4 .4 .4 .4 .4 .4 .3 .9 .3 66 Miscellaneous and unallocated8 5.3 9.1 9.9 10.6 11.7 13.1 14.3 13.7 13.9 14.8 15.7 1. The banking offices covered by these data are the U.S. offices and foreign the claims of the U.S. offices also include customer claims and foreign currency branches of U.S.-owned banks and of U.S. subsidiaries of foreign-owned banks. claims (amounting in June 1978 to $10 billion). Offices not covered include (1) U.S. agencies and branches of foreign banks, and 3. In addition to the Organization of Petroleum Exporting Countries shown (2) foreign subsidiaries of U.S. banks. To minimize duplication, the data are ad- individually, this group includes other members of OPEC (Algeria, Gabon, Iran, justed to exclude the claims on foreign branches held by a U.S. office or another Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) 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 foirn FthRis AtaSblEe Rin clude only banks' own claims payable in dollars. For earlier dates http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • October 1981 3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1981 1981 CCCooouuunnntttrrryyy ooorrr aaarrreeeaaa 11997799 11998800 Jan.- Aug. Feb. Mar. Apr. May June July Aug.? Holdings (end of period)1 1 Estimated total2 51,344 57,418 60,276 61,759 62,123 62,836 64,102 64,508 66,205 2 Foreign countries2 45,915 52,830 55,654 56,840 57,352 58,038 59,159 59,528 61,347 3 Europe2 24,824 24,337 25,466 25,235 24,883 24,511 24,869 24,442 24,858 4 Belgium-Luxembourg 60 77 88 106 123 131 173 163 370 5 Germany2 14,056 12,335 12,915 12,340 11,925 11,949 12,594 13,236 13,534 6 Netherlands 1,466 1,884 1,944 1,965 1,950 1,813 1,781 1,756 1,760 7 Sweden 647 595 535 566 567 572 582 606 623 8 Switzerland2 1,868 1,485 1,524 1,527 1,526 1,535 1,600 763 746 9 United Kingdom 6,236 7,183 7,745 7,892 7,862 7,274 6,836 6,569 6,490 10 Other Western Europe 491 777 714 839 930 1,236 1,304 1,350 1,334 11 Eastern Europe 0 0 0 0 0 0 0 0 0 12 Canada 232 449 490 478 464 486 484 501 514 13 Latin America and Caribbean 466 999 1,074 1,151 939 849 666 724 818 14 Venezuela 103 292 292 292 292 287 287 287 313 15 Other Latin America and Caribbean . 200 285 341 339 389 430 217 260 321 16 Netherlands Antilles 163 421 441 519 258 132 162 177 184 17 Asia 19,805 26,112 27,467 28,827 29,920 31,047 31,997 32,716 34,008 18 Japan 11,175 9,479 9,543 9,543 9,566 9,606 9,778 9,786 9,890 19 Africa 591 919 1,139 1,139 1,139 1,140 1,139 11,,113399 11,,114400 20 All other -3 14 18 9 7 6 3 66 88 21 Nonmonetary international and regional organizations 5,429 4,588 4,622 4,919 4,771 4,798 4,943 4,980 4,858 22 International 5,388 4,548 4,586 4,878 4,759 4,791 4,936 4,977 4,856 23 Latin American regional 37 36 36 36 6 1 1 1 1 Transactions (net purchases, or sales (-) during period) 24 Total2 6,397 6,074 8,787 1,827 1,480 364 713 1,266 405 1,697 25 Foreign countries2 6,099 6,915 8,516 1,736 1,185 512 686 1,121 369 1,818 26 Official institutions 1,697 3,865 7,377 1,404 1,084 495 321 980 798 1,430 27 Other foreign2 4,403 3,049 1,138 332 101 17 365 141 -429 388 28 Nonmonetary international and regional organizations 301 -843 272 91 295 -148 26 145 36 -120 MEMO: Oil-exporting countries 29 Middle East3 -1,014 7,672 7,093 1,139 1,322 1,062 841 565 659 1,204 30 Africa4 -100 327 220 169 0 0 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 I year. Data are based on a benchmark private foreign residents denominated in foreign currencies. survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign United Arab Emirates (Trucial States). countries. 4. Comprises Algeria, Gabon, Libya, and Nigeria. 3.22 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1981 AAsssseettss 11997788 11997799 11998800 Mar. Apr. May June July Aug. Sept.? 1 Deposits 367 429 411 474 475 346 338 285 255 419 Assets held in custody 2 U.S. Treasury securities1 117,126 95,075 102,417 111,859 113,746 109,742 107,884 105,064 102,197 101,068 3 Earmarked gold2 15,463 15,169 14,965 14,883 14,886 14,875 14,871 14,854 14,833 14,813 1. Marketable U.S. Treasury bills, notes, and bonds; and nonmarketable U.S. NOTE. Excludes deposits and U.S. Treasury securities held for international and Treasury securities payable in dollars and in foreign currencies. regional organizations. Earmarked gold is gold held for foreign and international 2. The value of earmarked gold increased because of the changes in par value accounts and is not included in the gold stock of the United States, of the U.S. dollar in May 1972 and in October 1973. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Investment Transactions A65 3.23 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1981 1981 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 1979 11998800 A Ja u n g . . - P Feb. Mar. Apr. May June July Aug.'' U.S. corporate securities STOCKS 1 Foreign purchases 22,781 40,320 29,199 2,720 3,951 4,041 4,083 4.389' 3,444 3,146 2 Foreign sales 21,123 34,962 24,485 2,313 3.314 3,323 2,858 3.419 3.257 3,201 3 Net purchases, or sales (-) 1,658 5,358 4,715 407 637 718 1,225 970' 187 -55 4 Foreign countries 1,642 5,340 4,667 405 629 710 1,215 965r 179 -51 5 Europe 217 3,069 3.183 258 606 419 766 512' 108 73 6 France 122 482 856 42 110 126 393 45' 48 29 7 Germany -221 186 31 18 31 15 -17 16r -28 -29 8 Netherlands -71 -328 46 2 12 -2 31 29' -41 -28 9 Switzerland -519 308 359 -24 138 75 84 0 -19 1 10 United Kingdom 964 2.503 1,712 220 309 197 215 37 r 136 85 11 Canada 552 865 737 91 105 230 143 104 77 -39 12 Latin America and Caribbean -19 148 23 -22 14 -26 9 126 -126 -52 13 Middle East1 688 1.206 458 74 -95 91 223 33 105 -36 14 Other Asia 211 16 307 -2 0 3 77 187 37 20 15 Africa -14 -1 6 0 - 1 -1 1 4 - 1 0 16 Other countries 7 38 -46 7 0 -5 -4 - 1 -21 -17 17 Nonmonetary international and regional organizations 17 18 47 2 8 8 10 5 8 -5 BONDS2 18 Foreign purchases 8.835 15.425 12,437 1.402 2,035 1,549 894 1.939 1,894 1.175 19 Foreign sales 7.602 9.964 7,530 863 1,239 774 669 1.450 820 898 20 Net purchases, or sales (—) 1,233 5,461 4,907 539 796 775 225 489 1,074 277 21 Foreign countries 1,330 5,526 4,849 552 797 733 243 473 1,067 278 22 Europe 626 1,576 1.459 311 132 328 -3 179 122 176 23 France 11 129 -9 -42 9 8 17 10 -5 -9 24 Germany 58 213 632 112 97 23 28 151 68 105 25 Netherlands -202 -65 46 12 14 13 4 0 0 -2 26 Switzerland -118 54 152 12 4 17 34 20 22 22 27 United Kingdom 814 1.257 512 207 -22 231 -87 4 11 45 28 Canada 80 135 72 -2 19 12 18 -6 23 2 29 Latin America and Caribbean 109 185 110 26 28 22 9 12 21 -5 30 Middle East1 424 3,499 3.262 201 723 362 192 359 853 81 31 Other Asia 88 117 -52 17 -105 9 27 -71 49 24 32 Africa 1 5 0 0 0 0 0 0 0 0 33 Other countries 1 10 -3 0 0 0 0 1 0 0 34 Nonmonetary international and regional organizations -96 -65 59 -13 -1 42 -18 16 7 _1 Foreign securities 35 Stocks, net purchases, or sales (-) -786 -2.089 -149 13 -187 -90 32 -114 108 54 36 Foreign purchases 4,615 7.885 6.490 709 763 851 853 891 891 835 37 Foreign sales 5,401 9,974 6,639 697 950 941 821 1.005 783 780 38 Bonds, net purchases, or sales (-) -3,855 -900 -1,941 29 -141 -632 -194 -479' -417 130 39 Foreign purchases 12,672 17,069 10.988 1,296 1,686 1,154 1,292 1.509 1.768 1,140 40 Foreign sales 16,527 17,970 12,929 1,267 1,827 1,786 1,487 1.988' 2,185 1,011 41 Net purchases, or sales (-), of stocks and bonds ... -4,641 - 2,989 - 2,090 42 -328 -723 -162 -592r -309 184 42 Foreign countries -3,891 -3,866 -2,455 24 -340 -732 -162 -592' -619 226 43 Europe -1,646 -958 -271 80 -161 -300 75 -41 147 45 44 Canada -2,601 -1.959 -2,180 76 -101 -271 -385 -507 -858 -130 45 Latin America and Caribbean 347 84 250 52 -68 119 -51 -10 -24 181 46 Asia 44 -1.136 -227 -169 9 -234 174 -104' 141 132 47 Africa -61 24 -56 -8 -17 -7 -3 -6 -2 -3 48 Other countries 25 80 29 -7 -2 -39 29 75 -23 1 49 Nonmonetary international and regional organizations -750 876 365 17 12 9 0 0 311 -43 1. Comprises oil-exporting countries as follows: Bahrain. Iran. Iraq, Kuwait. 2. Includes state and local government securities, and securities of U.S. gov- Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). ernment agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. corporations organized to finance direct investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics • October 1981 3.24 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1980 1981 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997788 11997799 11998800 Mar. June Sept. Dec. Mar. 1 Total 14,956' 17,104r 21,235' 17,605r 18,649' 18,682' 21,235' 21,248' 2 Payable in dollars 11,527' 14,029' 17,527' 14,493' 15,210' 15,345' 17,527' 17,727' 3 Payable in foreign currencies2 3,429' 3,075r 3,709 3,012' 3,439' 3,337' 3,709 3,521' By type 4 Financial liabilities 6,368' 7,411r 11,022' 7,950' 8,417' 8,345' 11,022' 11,458' 5 Payable in dollars 3,853' 5,141r 8,249' 5,708' 5,796' 5,858' 8,249' 8,825' 6 Payable in foreign currencies 2,515 2,270 2,772 2,242 2,621' 2,487' 2,772 2,633' 7 Commercial liabilities 8,588' 9,693' 10,214 9,656' 10,232' 10,337' 10,214 9,791 8 Trade payables 4,001' 4,421' 4,400 4,202' 4,296' 4,377' 4,400 4,442 9 Advance receipts and other liabilities 4,587 5,272 5,814 5,454 5,936 5,960 5,814 5,349 10 Payable in dollars 7,674 8,888 9,277 88,,888855'' 9,413' 9,487' 9,277 88,,990033 11 Payable in foreign currencies 914r 805r 936 777700'' 819' 850' 936 888888 By area or country Financial liabilities 12 Europe 3,971' 4,655' 6,309' 4,893' 5,437' 5,316' 6,309' 6,007' 13 Belgium-Luxembourg 293' 345 484 380' 437' 432' 484 553 14 France 173 175 327 193 347 360' 327 324 15 Germany 366 497 582 520 657 557 582 498' 16 Netherlands 391' 829' 663 796' 799' 781' 663 544 17 Switzerland 248 170 354 174 233' 224 354 315 18 United Kingdom 2,167' 2,460' 3,765' 2,658' 2,796' 2,832' 3,765' 3,661' 19 Canada 247r 466r 864 407' 557' 551' 864 1,059' 20 Latin America and Caribbean 1,357 1,483 3,100 1,816' 1,641' 1,734' 3,100 3,483' 21 Bahamas 478 375 964 486' 429' 407' 964 1,217 22 Bermuda 4 81 1 83 2 1 1 1 23 Brazil 10 18 23 22 25 20 23 19 24 British West Indies 194 514 1,452 720' 714' 708' 1,452 1,458' 25 Mexico 102 121 99 101 101 108 99 97 26 Venezuela 49 72 81 70 72 74 81 85 27 Asia 784 799 r 723 813' 757' 712' 723 880' 28 Japan 717 726 644 740 683 618 644 766' 29 Middle East oil-exporting countries3 32 31 38 26 31 37 38 51 30 Africa 5 4 11 11 10 11 11 6 31 Oil-exporting countries4 2 1 1 1 1 1 1 1 32 All other5 5 4 15 10 15 21 15 23 Commercial liabilities 33 Europe 3,047' 3,636' 4,067 3,721' 4,036' 4,074' 4,067 3,669 34 Belgium-Luxembourg 97 137 90 118' 133' 109 90 82 35 France 321 467 582 503 485 501 582 560 36 Germany 523' 545' 679 544' 724' 686' 679 639 37 Netherlands 246 227 219 288 245 276 219 246 38 Switzerland 302 310 493 386' 462 452 493 385 39 United Kingdom 824 1,077 1,011 1,013' 1,133 1,047' 1,011 871 40 Canada 667 868 785 727' 591 591' 785 725 41 Latin America 997 1,323 11,,224444 1,253 1,271 11,,336611 11,,224444 1,280 42 Bahamas 25 69 88 4 26 88 88 1 43 Bermuda 97 32 73 47 107 114 73 111 44 Brazil 74 203 111 228 151 156 111 82 45 British West Indies 53 21 35 20 37 12 35 16 46 Mexico 106 257 326 235 272 324 326 419 47 Venezuela 303 301 307 211 210 293 307 253 48 Asia 2,931 2,905 2,848 2,950 3,091 2,909 2,848 2,853 49 Japan 448 494 645 581 418 502 645 621 50 Middle East oil-exporting countries3 1,523 1,017 894 901 1,030 944 894 947 51 Africa 743 728 814 742 875 1,006 814 824 52 Oil-exporting countries4 312 384 514 382 498 633 514 515 53 Allother5 203 233 456 263 367 396 456 440 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 A67 3.25 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 Millions of dollars, end of period 1980 1981 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997788 11997799 11998800 Mar.' June' Sept.' Dec. Mar. 1 Total 27,882' 31,095r 34,288' 32,313 32,290 31,908 34,288r 37,450' 2 Payable in dollars 24,910' 27,936' 31,415' 29,316 29,216 28,612 31,415' 34,531' 3 Payable in foreign currencies2 2,972' 3,159' 2,874' 2,998 3,074 3,296 2,874' 2,919' By type 4 Financial claims 16,554' 18,282' 19,701' 19,523 18,858 18,573 19,701' 22,149' 5 Deposits 11,111 12,654' 13,872' 13,865 13,028 12,520 13,872' 16,425' 6 Payable in dollars 10,043 11,738' 13,097' 12,884 12,125 11,307 13,097' 15,630 7 Payable in foreign currencies 1,068 916 775' 982 904 1,213 775' 795' 8 Other financial claims 5,443' 5,628' 5,829' 5,658 5,830 6,053 5,829' 5,724' 9 Payable in dollars 3,874 3,802' 4,146' 4,054 4,102 4,399 4,146' 4,078' 10 Payable in foreign currencies 1,569' 1,826' 1,683' 1,604 1,728 1,655 1,683' 1,646' 11 Commercial claims 11,329' 12,813' 14,588 12,790 13,432 13,335 14,588 15,301 12 Trade receivables 10,770' 12,122' 13,871 12,136 12,715 12,635 13,871 14,506 13 Advance payments and other claims 559 691' 717 655 717 700 717 795 14 Payable in dollars 10,993' 12,396' 14,171 12,378 12,989 12,906 14,171 14,823 15 Payable in foreign currencies 335 416 416 412 443 428 416 478 By area or country Financial claims 16 Europe 5,215 6,163' 6,094' 5,885 5,882 5,680 6,094' 6,098' 17 Belgium-Luxembourg 48 32 195 21 23 17 195 170' 18 France 178 177 334' 290 307 409 334' 411 19 Germany 510 409' 230 305 195 168 230 213 20 Netherlands 103 53 32 39 37 30 32 42 21 Switzerland 98 73 59 89 96 41 59 90 22 United Kingdom 4,021 5,107' 4,967' 4,837 4,908 4,634 4,967' 4,900' 23 Canada 4,469' 4,841' 5,016' 5,022 4,918 4,906 5,016' 6,562' 24 Latin America and Caribbean 5,714 6,276' 7,612' 7,595 6,956 6,806 7,612' 8,548' 25 Bahamas 33,,000011 2,757' 3,420' 3,522 3,098 2,845 3,420' 3,947' 26 Bermuda 8800 30 135 34 25 65 135 13 27 Brazil 151 163 96 128 120 116 96 22 28 British West Indies 1,291 2,001 2,615' 2,599 2,408 2,337 2,615' 3,393' 29 Mexico 162' 157' 208 168 177 192 208 168' 30 Venezuela 157 143 137 134 139 128 137 131 31 Asia 920 706 710 712 781 853 710 691' 32 Japan 305 199 177 226 276 331 177 191 33 Middle East oil-exporting countries3 18 16 20 18 16 20 20 17 34 Africa 181 253 238 265 256 260 238 214 35 Oil-exporting countries4 10 49 26 40 35 29 26 27 36 All other5 55 44 32 43 65 68 32 36 Commercial claims 37 Europe 3,982' 4,904' 5,487 4,792 4,850 4,676 5,487 5,785 38 Belgium-Luxembourg 144 202 232 209 258 230 232 275 39 France 609 727' 1,128 703 665 709 1,128 906 40 Germany 398 589 590 523 512 569 590 594 41 Netherlands 267 298 318 347 297 289 318 349 42 Switzerland 198 272' 351 353 434 339 351 460 43 United Kingdom 824 901 930 937 907 991 930 1,192 44 Canada 1,094 846 897 863 899 933 897 1,027 45 Latin America and Caribbean 2,546' 2,853' 330 2,995 3,291 3,389 3,790 3,807 46 Bahamas 109 21 21 19 19 53 21 15 47 Bermuda 215 197 148 135 133 81 148 170 48 Brazil 628 645 861 657 696 712 861 797 49 British West Indies 9 16 34 11 9 17 34 15 50 Mexico 505 698 1,090 835 931 992 1,090 1,049 51 Venezuela 291 343 407 350 395 388 407 435 52 Asia 3,081' 3,415' 3,447 3,398 3,577 3,398 3,447 3,684 53 Japan 976 1,140 990 1,213 1,143 1,094 990 1,238 54 Middle East oil-exporting countries3 716 766 821 719 830 837 821 915 55 Africa 447 554 651 517 566 669 651 675 56 Oil-exporting countries4 136 133 151 114 115 135 151 143 57 All other5 178 240 316 225 249 270 316 321 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

A68 International Statistics • October 1981 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Sept. 30, 1981 Rate on Sept. 30, 1981 Rate on Sept. 30, 1981 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Argentina 181.54 Sept. 1981 France1 19.5 Sept. 1981 Sweden 12.0 Jan. 1981 Austria .. 6.75 Mar. 1980 Germany, Fed. Rep. of 7.5 May 1980 Switzerland 6.0 Sept. 1981 Belgium.. 13.0 May 1981 Italy 19.0 Mar. 1981 United Kingdom' Brazil.... 40.0 June 1980 Japan 6.25 Mar. 1981 Venezuela 10.0 July 1980 Canada .. 19.67 Sept. 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 discounts or makes advances against eligible commercial paper and/or Treasury bills for 7 to 10 days. government commercial banks or brokers. For countries with 2. MLR suspended as of August 20, 1981. 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 largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1981 CCoouunnttrryy,, oorr ttyyppee 11997788 11997799 11998800 Mar. Apr. May June July Aug. Sept. 1 Eurodollars 8.74 11.96 14.00 15.36 15.95 19.06 17.86 18.50 18.79 17.80 2 United Kingdom 9.18 13.60 16.59 12.58 12.26 12.34 12.61 13.63 14.02 14.60 3 Canada 8.52 11.91 13.12 16.85 17.35 18.96 19.28 19.67 21.84 20.42 4 Germany 3.67 6.64 9.45 13.44 13.12 13.06 13.05 12.92 12.87 12.48 5 Switzerland 0.74 2.04 5.79 8.33 8.67 9.87 10.02 9.76 9.05 10.56 6 Netherlands 6.53 9.33 10.60 10.61 10.41 11.76 11.81 12.38 13.54 12.96 7 France 8.10 9.44 12.18 12.56 13.00 15.75 18.84 17.34 17.40 17.65 8 Italy 11.40 11.85 17.50 18.22 19.92 19.92 20.49 20.78 20.94 21.07 9 Belgium 7.14 10.48 14.06 13.93 17.16 16.90 15.58 16.16 16.00 16.00 10 Japan 4.75 6.10 11.45 7.87 6.83 7.22 7.41 7.16 7.22 7.26 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 CCoouunnttrryy//ccuurrrreennccyy 11997788 11997799 11998800 Mar. Apr. May June July Aug. Sept. 1 Australia/dollar 114.41 111.77 114.00 116.29 115.32 114.06 114.07 114.27 113.99 114.86 2 Austria/schilling 6.8958 7.4799 7.7349 6.6959 6.5355 6.1722 5.9502 5.8225 5.6968 6.0554 3 Belgium/franc 3.1809 3.4098 3.4247 2.8966 2.8220 2.6742 2.5734 2.5027 2.4466 2.5978 4 Canada/dollar 87.729 85.386 85.530 83.936 83.966 83.265 83.050 82.601 81.766 83.275 5 Denmark/krone 18.156 19.010 17.766 15.109 14.683 13.864 13.384 13.074 12.732 13.552 6 Finland/markka 24.337 27.732 26.892 24.612 23.059 23.207 22.511 22.045 21.607 22.225 7 France/franc 22.218 23.504 23.694 20.147 19.548 18.225 17.679 17.253 16.720 17.769 8 Germany/deutsche mark 49.867 54.561 55.089 47.498 46.219 43.601 42.054 40.977 39.988 42.545 9 India/rupee 12.207 12.265 12.686 12.131 12.060 11.900 11.688 11.229 11.038 10.971 10 Ireland/pound 191.84 204.65 205.77 173.25 168.46 159.49 153.61 149.40 146.04 155.04 11 Italy/lira .11782 .12035 .11694 .09699 .09280 .08766 .08436 .08233 .08038 .08424 17 Japan/yen .47981 .45834 .44311 .47897 .46520 .45332 .44621 .43055 .42881 .43582 13 Malaysia/ringgit 43.210 45.720 45.967 43.830 43.182 42.752 42.720 42.519 42.119 42.527 14 Mexico/peso 4.3896 4.3826 4.3535 4.2238 4.1880 4.1500 4.1066 4.0650 4.0301 3.9859 15 Netherlands/guilder 46.284 49.843 50.369 42.912 41.660 39.224 37.816 36.833 36.009 38.329 16 New Zealand/dollar 103.64 102.23 97.337 91.999 90.273 88.150 85.823 83.771 82.331 82.644 17 Norway/krone 19.079 19.747 20.261 18.540 18.271 17.652 16.907 16.387 16.177 16.779 18 Portugal/escudo 2.2782 2.0437 1.9980 1.7621 1.7178 1.6449 1.5899 1.5429 1.4999 1.5268 19 South Africa/rand 115.01 118.72 128.54 126.50 123.32 119.35 115.18 108.46 105.27 105.56 20 Spain/peseta 1.3073 1.4896 1.3958 1.1672 1.1395 1.0953 1.0565 1.0248 .99864 1.0407 71 Sri Lanka/rupee 6.3834 6.4226 6.1947 5.5527 5.4185 5.4422 5.3970 5.3491 5.1932 5.0056 77 Sweden/krona 22.139 23.323 23.647 21.704 21.309 20.450 19.802 19.293 18.870 18.435 7.3 Switzerland/franc 56.283 60.121 59.697 52.043 50.664 48.400 48.226 47.667 46.091 49.511 24 United Kingdom/pound 191.84 212.24 232.58 223.19 217.53 208.84 197.38 187.37 182.03 181.46 MEMO: 25 United States/dollar1 92.39 88.09 87.39 96.22 98.80 103.59 106.86 109.87 112.29 107.98 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. Digitized for FWReiAghStsE Rare 1972-76 global trade of each of the 10 countries. Series http://fraser.srteloviuseids feasd .oof rgA/u gust 1978. For description and back data, see "Index of NOTE. Averages of certified noon buying rates in New York for cable transfers. Federal Reserve Bank of St. Louis

A69 Guide to Tabular Presentation, Statistical Releases, and Special Tables GUIDE TO TABULAR PRESENTATION Symbols and Abbreviations c Corrected 0 Calculated to be zero e Estimated n.a. Not available p Preliminary n.e.c. Not elsewhere classified r Revised (Notation appears on column heading IPCs Individuals, partnerships, and corporations when more than half of figures in that column REITs Real estate investment trusts are changed.) RPs Repurchase agreements * Amounts insignificant in terms of the last decimal SMSAs Standard metropolitan statistical areas place shown in the table (for example, less than Cell not applicable 500,000 when the smallest unit given is millions) General Information Minus signs are used to indicate (1) a decrease, (2) a negative 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 June 1981 A78 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference 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 A72 Assets and liabilities of U.S. branches and agencies of foreign banks, June 30, 1981 October 1981 A80 Commercial bank assets and liabilities, March 31, 1981 July 1981 A72 Commercial bank assets and liabilities, June 30, 1981 October 1981 A74 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • October 1981 4.10 TIME AND SAVINGS DEPOSITS Held by Insured Commercial Banks on Recent Survey Dates Deposits NNuummbbeerr ooff iissssuuiinngg bbaannkkss TTTyyypppeeesss ooofff dddeeepppooosssiiitttsss,,, dddeeennnooommmiiinnnaaatttiiiooonnn,,, Millions of dollars Percentage change aaannnddd ooorrriiigggiiinnnaaalll mmmaaatttuuurrriiitttyyy Jan. 28. Apr. 29. July 29 Jan. 28. Apr. 29. July 29 Jan. 28- Apr. 29- 1981 1981 1981 1981 1981 1981 Apr. 29 July 29 Total time and savings deposits 14,346 14,377 14,317 768,145 772,782 803,665 0.6 4.0 Savings 14.346 14.377 14,317 208,249 204.485 201.981 -1.8 -1.2 Holder Individuals and nonprofit organizations 14.346 14.377 14.317 194,430 191,371 189.350 -1.6 -1.1 Partnerships and corporations operated for profit (other than commercial banks) 11.031 10.762 10.641 9,714 8.987 8,510 -7.5 -5.3 Domestic governmental units 9,386 9.277 9.371 3,242 3.130 3,371 -3.5 7.7 All other 1,720 1.898 1,995 862 998 749 15.7 -24.9 Interest-bearing time deposits, less than $100,000 14.223 14.168 14.199 300,960 310.927 322.918 3.3 3.9 Domestic governmental units' 9.187 8.780 9.019 1.952 1.795 1.873 -8.1 4.4 14 up to 90 days 3.438 3.595 3.181 329 280 284 -14.7 1.1 90 up to 180 days 5,223 4,814 4,940 579 474 512 -18.2 8.0 180 days up to 1 year 3.998 4,035 4,008 277 316 319 14.0 0.9 1 year and over 6.757 6.910 6,646 767 724 759 -5.5 4.8 Other than domestic governmental units' 14.102 14.127 14,068 76,835 68.651 60,612 -10.7 -11.7 14 up to 90 days 3.889 4.199 3.611 1,075 1.137 1,002 5.8 -11.9 90 up to 180 days 10.738 10.448 10,335 13,876 12.744 12.006 -8.2 -5.8 180 days up to 1 year 7.655 8,084 7.461 2.336 2.522 1,732 8.0 -31.3 1 up to 2'/2 years 13,688 13.774 13.660 9.622 8.277 7,192 -14.0 -13.1 2'/2 up to 4 years 12,280 12,211 11.589 6.591 5.485 4.775 -16.8 -12.9 4 up to 6 years 13.256 13.474 13.368 24.618 22.197 19,346 -9.8 -12.8 6 up to 8 years 11.320 11.276 11.470 16.405 14.069 12.552 -14.2 -10.8 8 years and over 8.210 8.143 7,861 2.311 2.220 2.007 -4.0 -9.6 IRA and Keogh Plan time deposits, with maturities of 3 years or more or variable ceiling rates 10,432 10,893 10.967 5.703 6.351 6,657 11.4 4.8 Money market certificates. $10,000 or more, with maturities of exactly 6 months2 13,907 13,960 13,973 184.745 199.378 217,892 7.9 9.3 Variable interest rate ceiling time deposits of less than $100,000 with maturities of 2'/2 years or more2-3 13.280 13,538 13.448 31.725 34.752 35,884 9.5 3.3 Interest-bearing time deposits. $100,000 or more 13.479 13,419 13.308 253.796 251.406 272,174 -0.9 8.3 Non-interest-bearing time deposits 1.407 1.567 1.450 4,235 4.377 4.383 3.4 0.1 Less than $100,000 1.055 1.237 1,112 760 736 648 -3.1 -12.0 $100,000 or more 672 674 665 3,475 3.641 3.735 4.8 2.6 Club accounts (Christmas savings, vacation, and the like) 9.076 8.974 9.047 906 1.587 2.202 75.2 38.8 1. Excludes all 6-month money market certificates, all 2'/2-year and over vari- NOTE. All banks that had either discontinued offering or never offered certain able-rate ceiling certificates, IRAs. and Keogh Plan accounts. Such accounts are types of deposits as of the survey date are not counted as issuing banks. However, included in the items below. small amounts of deposits held at banks that had discontinued issuing certain types 2. Excludes accounts held in IRA and Keogh Plans. Such accounts are included of deposits are included in the amounts outstanding. in item above. Details may not add to totals because of rounding. 3. Effective Jan. 1. 1980. commercial banks, savings and loan associations, and mutual savings banks are authorized to offer variable ceiling accounts with no required minimum denomination and with maturities of 2Vi years or more. The maximum rate for commercial banks is VJ percentage point below the yield on 2 ]/iyear U.S. Treasury securities: the ceiling rate for thrift institutions is Uj percentage point higher than that for commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Time and Savings Deposits All 4.11 SMALL-DENOMINATION TIME AND SAVINGS DEPOSITS Held by Insured Commercial Banks on Apr. 29, 1981, and July 29, 1981, Compared with Previous Survey, by Type of Deposit, by Most Common Rate Paid on New Deposits in Each Category, and by Size of Bank Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) All banks All banks DDDeeepppooosssiiittt gggrrrooouuuppp,,, ooorrriiigggiiinnnaaalll mmmaaatttuuurrriiitttyyy,,, aaannnddd dddiiissstttrrriiibbbuuu--- Less than 100 100 and over Less than 100 100 and over tttiiiooonnn ooofff dddeeepppooosssiiitttsss bbbyyy mmmooosssttt cccooommmmmmooonnn rrraaattteee July 29. Apr. 29. Julv 29. Apr. 29. Julv 29. Apr. 29. Julv 29. Apr. 29. Julv 29. Apr. 29. Julv 29. Apr. 29. 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 Amount of deposits (in millions of dollars) Number of banks, or percentage distribution or percentage distribution Savings deposits Individuals and nonprofit Issuing banks 14.317 14.377 12.900 12.954 1.417 1.423 189.350 191.371 60.718 61.236 128.632 130.135 Distribution, total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.50 or less 1.3 2.7 1.1 2.7 3.3 2.8 2.9 4.1 2.3 5.2 3.2 3.5 4.51-5.00 3.4 3.5 3.3 3.4 4.8 3.9 4.1 3.5 4.4 4.4 3.9 3.0 5.01-5.25 95.3 93.8 95.7 93.9 91.9 93.4 93.0 92.5 93.4 90.3 92.9 93.5 MEMO: Paying ceiling rate1 95.3 93.8 95.7 93.9 91.9 93.4 93.0 92.5 93.4 90.3 92.9 93.5 Partnerships and corporations Issuing banks 10.641 10.762 9.241 9.361 1.400 1.400 8.510 8.987 2.621 2.742 5.889 6,245 Distribution, total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.50 or less .4 .9 .4 9 i .9 .4 .8 .7 1.0 ~> .7 4.51-5.(K) 3.3 3.2 3.2 3.2 4.3 3.9 5.3 4.7 9.8 8.9 3.3 2.8 5.01-5.25 96.3 95.8 96.4 95.9 95.4 95.2 94.3 94.5 89.5 90.1 96.5 96.4 MEMO: Paying ceiling rate1 96.3 95.8 96.4 95.9 95.4 95.2 94.3 94.5 89.5 90.1 96.5 96.4 Domestic governmental units Issuing banks 9.346 9.264 8.311 8.252 1.034 1.012 3.339 3.123 1.964 1.650 1.375 1.473 Distribution, total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.50 or less .5 1.1 .5 1.1 .6 .6 .1 .3 (2) .4 .3 .3 4.51-5.00 2.7 1.6 2.6 1.2 3.1 4.8 2.8 3.7 .9 .2 5.5 7.6 5.01-5.25 96.9 97.3 96.9 97.6 96.3 94.6 97.1 96.0 99.1 99.5 94.2 92.0 MEMO: Paying ceiling rate1 96.9 97.3 96.9 97.6 96.3 94.6 97.1 96.0 99.1 99.5 94.2 92.0 All other Issuing banks 1.995 1.898 1.727 1.621 268 277 749 998 602 790 147 208 Distribution, total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4 4. . 5 5 1 0 - 5 o . r ( K le ) ss ( . 2 7 ) 3. . 6 1 (2) 3 ( .3 2 ) 5 ( .3 2 > 5. . 1 7 ( . 2 7 ) < .4 2 ) < ( < (22 ;;>> )) ( ( 2 2 ) ) 3 ( .4 2 ) 1 ( .7 2 ) 5.01-5.25 99.3 96.3 100.0 96.7 94.7 94.2 99.3 99.6 100.0 100.0 96.6 98.3 MEMO: Paying ceiling rate' 99.3 96.3 100.0 96.7 94.7 94.2 99.3 99.6 100.0 100.0 96.6 98.3 Time deposits less than $100,000 Domestic governmental units 14 up to 90 days Issuing banks 3.175 3.588 2,563 2.936 612 652 269 267 156 122 113 146 Distribution, total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 5.00 or less 13.8 18.2 14.3 20.1 11.6 10.0 7.1 7.7 10.9 15.9 1.8 .8 5.01-5.50 38.7 31.5 35.2 25.1 53.2 60.3 51.8 33.9 52.5 9.8 50.8 53.9 5.51-8.00 47.5 50.3 50.5 54.8 35.2 29.7 41.1 58.5 36.5 74.2 47.4 45.3 MEMO: Paying ceiling rate1 45.9 42.8 49.4 46.3 31.2 27.5 39.4 51.9 36.5 65.1 43.3 40.9 90 up to 180 days Issuing banks 4.934 4.809 4.152 4.017 782 791 510 471 240 197 270 274 Di 5 st .0 ri 0 b u or t io le n s , s total 100 1 . . 0 9 10 3 0 . . 0 0 100 1 . . 0 9 10 3 0 . . 6 0 100 1 . . 0 8 100. . 0 4 100. . 0 1 100(.02 ) 100 ( .0 2 ) 100. . 0 1 100. . 0 2 100 ( .0 2 ) 5.01-5.50 22.3 28.9 21.8 29.4 25.0 26.4 10.8 16.3 17.0 30.5 5.4 6.1 5.51-8.00 75.8 68.0 76.3 67.0 73.2 73.2 89.1 83.7 83.0 69.4 94.4 93.9 MEMO: Paying ceiling rate1 29.8 24.8 30.8 25.4 24.8 21.9 18.7 20.5 30.0 36.5 8.6 9.0 180 days up to 1 year Issuing banks 3.961 4.035 3.315 3.374 646 661 319 316 166 136 153 180 Di 5 st .0 ri 0 b u or t io le n s , s total 10 5 0 . . 0 0 10 4 0 . . 2 0 10 6 0 . . 0 0 10 5 0 . . 1 0 100 ( .0 2 ) 100 ( .0 2 ) 10 2 0 . . 1 0 100. . 0 8 10 4 0 . . 0 0 10 2 0 . . 0 0 100 ( .0 2 ) 100 ( .0 2 ) 5.01-5.50 25.6 22.2 27.6 23.4 15.3 16.6 14.0 12.9 21.4 20.8 6.1 6.8 5.51-8.00 69.4 73.5 66.4 71.6 84.7 83.4 83.9 86.3 74.6 77.3 93.9 93.2 MEMO: Paying ceiling rate1 31.3 25.2 31.6 24.8 29.6 27.5 31.8 27.5 46.4 33.8 15.9 22.7 1 year and over Issuing banks 6.599 6.869 5.759 5.990 840 879 425 392 267 227 158 165 Distribution, total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 5.50 or less 1.7 1.4 1.4 1.1 3.8 3.6 2.1 2.0 .7 .4 4.5 4.3 5.51-6.00 40.2 47.1 38.8 45.5 49.7 57.3 45.1 56.4 32.1 46.7 67.0 69.9 6.01-8.00 58.0 51.6 59.7 53.4 46.5 39.1 52.8 41.5 67.2 52.9 28.5 25.8 MEMO: Paying ceiling rate1 23.1 19.1 23.3 18.9 21.4 20.1 17.4 13.4 19.1 11.0 14.5 16.7 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • October 1981 4.11 Continued Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) DDDeeepppooosssiiittt gggrrrooouuuppp,,, ooorrriiigggiiinnnaaalll All banks All banks mmmaaatttuuurrriiitttyyy,,, aaannnddd dddiiissstttrrriiibbbuuu--tttiiiooonnn ooofff dddeeepppooosssiiitttsss bbbyyy Less than 100 100 and over Less than 100 100 and over mmmooosssttt cccooommmmmmooonnn rrraaattteee July 29, Apr. 29, July 29. Apr. 29, July 29, Apr. 29, July 29, Apr. 29, July 29, April 29, July 29, Apr. 29, 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 Number of banks or percentage distribution Amount of deposits (in millions of dollars) or percentage distribution Time deposits less than $100,000 (cont.) Other than domestic governmental units 14 up to 90 days Issuing banks 3,611 4,199 2,682 3,231 928 969 1.002 1,137 118 135 884 1,002 Distribution, total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 5.00 or less 22.0 18.6 25.7 20.6 11.3 12.0 13.5 9.9 49.8 29.9 8.7 7.3 5.01-5.25 78.0 81.4 74.3 79.4 88.7 88.0 86.5 90.1 50.2 70.1 91.3 92.7 MEMO: Paying ceiling rate1 78.0 81.4 74.3 79.4 88.7 88.0 86.5 90.1 50.2 70.1 91.3 92.7 90 up to 180 days Issuing banks 10,335 10,448 8.969 9,070 1.367 1,378 12,006 12,744 3,933 4,094 8,073 8,650 Distribution, total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.99 or less (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) 5.00-5.50 31.8 31.3 33.2 32.0 22.4 26.7 27.6 30.2 23.6 24.0 29.6 33.1 5.51-5.75 68.2 68.7 66.8 68.0 77.6 73.3 72.4 69.8 76.4 76.0 70.4 66.9 MEMO: Paying ceiling rate1 68.2 68.7 66.8 68.0 77.6 73.3 72.4 69.8 76.4 76.0 70.4 66.9 180 days up to 1 year Issuing banks 7,408 8,024 6.459 7.060 949 964 1,727 2,499 524 1,245 1,202 1,254 Distribution, total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.99 or less 1.0 .9 1.1 1.0 .6 (2) .4 (2) .1 (2) .5 (2) 5.00-5.50 46.2 44.1 49.8 47.0 21.8 22.3 38.1 46.1 43.3 71.6 35.8 20.9 5.51-5.75 52.8 55.1 49.1 52.0 77.5 77.7 61.5 53.8 56.6 28.4 63.7 79.1 MEMO: Paying ceiling rate1 52.8 55.1 49.1 52.0 77.5 77.7 61.5 53.8 56.6 28.4 63.7 79.1 1 up to 2'/5years Issuing banks 13,654 13,768 12.260 12.362 1.393 1.405 7,190 8.273 4,347 5,047 2,843 3,226 Distribution, total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 5.50 or less .5 .3 .4 .2 1.4 1.4 1.0 .6 .1 .2 2.5 1.1 5.51-6.00 99.5 99.7 99.6 99.8 98.6 98.6 99.0 99.4 99.9 99.8 97.5 98.9 MEMO: Paying ceiling rate1 98.5 99.6 98.5 99.8 98.2 98.3 98.3 99.0 99.5 99.8 96.5 97.9 2Vi years up to 4 years Issuing banks 11,584 12,152 10.256 10.806 1.328 1.347 4,763 5,463 2,706 3.022 2,057 2,440 Distribution, total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 6.00 or less 2.5 2.1 2.6 2.0 2.2 2.6 2.1 1.2 1.8 .5 2.3 2.1 6.01-6.50 97.5 97.9 97.4 98.0 97.8 97.4 97.9 98.8 98.2 99.5 97.7 97.9 MEMO: Paying ceiling rate1 96.2 97.5 96.2 97.6 95.7 97.0 97.6 97.3 98.1 97.2 96.9 97.5 4 up to 6 years Issuing banks 13.313 13,465 11.913 12.059 1.400 1.406 19,300 22,156 9,911 11,557 9,389 10,599 Distribution, total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 7.00 or less 6.7 8.0 7.2 8.6 2.4 2.9 4.0 4.9 6.4 7.4 1.5 2.2 7.01-7.25 93.3 92.0 92.8 91.4 97.6 97.1 96.0 95.1 93.6 92.6 98.5 97.8 MEMO: Paying ceiling rate1-3 93.2 91.9 92.8 91.4 96.8 96.4 95.9 95.0 93.6 92.6 98.3 97.6 6 up to 8 years Issuing banks 11.415 11,268 10.068 9.920 1.347 1.348 12.507 14,036 4,959 5,655 7.549 8,381 Distribution, total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 7.25 or less 4.2 3.2 4.5 3.4 2.5 1.9 3.3 1.2 4.1 .1 2.8 1.9 7.26-7.50 95.8 96.8 95.5 96.6 97.5 98.1 96.7 98.8 95.9 99.9 97.2 98.1 MEMO: Paying ceiling rate1-3 95.4 96.6 95.3 96.4 96.6 98.1 96.6 98.8 95.8 99.9 97.2 98.1 8 years and over Issuing banks 7,636 8,085 6.477 6.890 1,158 1,194 1,986 2.196 697 770 1.289 1,427 Distribution, total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 7.50 or less 1.6 2.4 1.5 2.2 2.6 3.9 4.6 4.7 .2 .3 7.0 7.0 7.51-7.75 98.4 97.6 98.5 97.8 97.4 96.1 95.4 95.3 99.8 99.7 93.0 93.0 MEMO: Paying ceiling rate1-3 98.4 97.6 98.5 97.8 97.4 96.1 95.4 95.3 99.8 99.7 93.0 93.0 IRA and Keogh Plan time deposits, with maturities of 3 years or more or variable ceiling rates Issuing banks 10.807 10,768 9.496 9,456 1,311 1,313 6.604 6,349 2,214 2,107 4,390 44,,224422 Di 8 8 s 1 t . . 1 0 r 0 . i 0 1 7 b - 6 u o 1 - r t 1 1 io . 5 l 7 e n . 5 s 5 , s 7 t otal 1 4 2 2 0 9 4 6 0 . . . . 5 2 3 0 V ( ( ( 3 3 3 ) ) ) ) 1 4 2 2 0 3 8 7 0 . . . . 4 7 9 0 il) 1 5 3 0 1 0 5 0 4 . . . . 2 1 0 7 0 0 0 1 4 4 0 1 1 1 0 7 . . . . 5 5 0 0 R R f 3 t ) ) 1 4 2 2 0 7 8 3 0 . . . . 6 7 7 0 ( 3 3 3 3 ) 1 4 3 0 1 8 8 0 3 . . . . 0 4 0 6 (( ( ( ( 3 33 3 3 )) { ) ) MEMO: Paying ceiling rate1 1.1 (3) 1.0 (3) 2.2 (3) 2.2 (3) 2.3 H 2.1 (3) Money market certificates, $10,000 or more, 6 months Issuing banks 13,973 13,960 12.557 12,538 1.416 1.422 217,892 199,378 94.541 86,830 123,351 111122,,554488 Di 1 1 st 4 4 r . . i 9 9 b 8 9 u - t o 1 i r o 5 n . l 5 e , 7 s t s o tal 1 9 0 4 5 0 . . . 9 1 0 ( (0 3 3 ) ) 1 9 0 4 6 0 . . . 0 0 0 iiss!! 1 9 0 5 5 0 . . . 0 0 0 0 (3 ) 1 9 0 7 2 0 . . . 7 3 0 0 3 1 9 0 7 2 0 . . . 7 3 0 r ( ( ) 3 3 ) \ 1 9 0 2 0 7 . . . 9 0 1 (( r ( 33 ) 3 )) \ MEMO: paying ceiling rate1 89.04 (3) 89.6 84.2 (3 86.4 3 89.0 r) 84.4 ft For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Time and Savings Deposits A73 4.11 Continued Size of bank Size of bank (total deposits in millions of dollars) (total deposits in millions of dollars) AAllll bbaannkkss AAllll bbaannkkss DDDeeepppooosssiiittt gggrrrooouuuppp,,, ooorrriiigggiiinnnaaalll mmmaaa tttiii ttt ooo uuu nnn rrr iiittt ooo yyy fff ,,, ddd aaa eee nnn ppp aaa ooo sss ddd iii iii ttt sss sss tttrrr bbb iii yyy bbb uuu--- Less than 100 100 and over Less than 100 100 and over mmmooosssttt cccooommmmmmooonnn rrraaattteee July 29, Apr. 29. July 29, Apr. 29, July 29, Apr. 29, July 29, Apr. 29, July 29, Apr. 29, July 29, Apr. 29. 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 1981 TT VV ii aa mm rrii ee aa bb dd llee ee ppoo iinn ss tt ii ee tt rr ss ee ss ll tt ee ssss rr aa tt tt hh ee aann ccee ii $$ llii 11 nn 00 gg 00 ,, tt 00 iimm 0000 ee (( dd cc ee oo -- nntt..)) Number of banks, or percentage distribution Amount of deposits (in d m is i t l r l i i b o u ns ti o o n f dollars) or percentage ppoossiittss ooff lleessss tthhaann $$110000,,000000 wwiitthh mmaattuurriittiieess ooff 22''//22 yyeeaarrss oorr mmoorree IIssssuuiinngg bbaannkkss 13,368 13,458 11,975 12,058 1,393 1.399 35,861 34,729 18,835 18,360 17.026 16,369 DDiissttrriibbuuttiioonn,, ttoottaall 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1111..0000 oorr lleessss 1.6 3.0 1.7 3.1 .9 1.8 .2 1.0 .3 1.3 .1 .6 1111..0011--1111..5500 1.0 .9 1.0 1.0 .4 (2) .3 .2 .4 .4 .2 (2) 1111..5511--1111..7755 97.4 96.1 97.3 95.8 98.6 98.2 99.5 98.8 99.3 98.3 99.6 99.4 MMEEMMOO:: PPaayyiinngg cceeiilliinngg rraattee11 97.4 96.1 97.3 95.8 98.6 98.2 99.5 98.8 99.3 98.3 99.6 99.4 CClluubb aaccccoouunnttss IIssssuuiinngg bbaannkkss 5,836 5,699 5,285 5.152 552 547 1,166 780 608 393 558 387 DDiissttrriibbuuttiioonn,, ttoottaall 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 00..0000 54.6 56.4 55.8 58.0 43.0 41.9 31.2 31.2 36.1 35.9 25.9 26.4 00..0011--44..0000 25.3 25.4 25.3 25.2 25.0 27.1 30.4 31.9 34.8 36.7 25.6 27.1 44..0011--44..5500 3.5 3.6 2.8 2.9 10.4 10.4 8.8 9.8 2.9 3.5 15.1 16.1 44..5511--55..7755 16.6 14.6 16.1 14.0 21.6 20.6 29.6 27.1 26.1 24.0 33.4 30.3 1. See BULLETIN table 1.16 for the ceiling rates that existed at the time of each NOTE. All banks that either had discontinued offering or had never offered survey. particular types of deposits as of the survey date are not counted as issuing banks. 2. Less than .05 percent. Moreover, the small amounts of deposits held at banks that had discontinued 3. See the July 1981 BULLETIN (table 4.11) for a distribution on Apr. 29, 1981, issuing deposits are not included in the amounts outstanding. Therefore, the deposit of these accounts by size of bank and by the interest rates paid. amounts shown in table 4.10 may exceed the deposit amounts shown in this table. 4. For money market certificates, the rates paid information refers to the most The most common interest rate for each instrument refers to the stated rate per common rate paid on new deposits in the week ending the survey date. Within annum (before compounding) that banks paid on the largest dollar volume of that week the ceiling rate on these accounts changes. For the week ending July deposit inflows during the 2-week period immediately preceding the survey date. 29. 1981, the ceiling rate was 15.568 percent until July 28 when it was changed to Details may not add to totals because of rounding. 15.040 percent. 4.12 AVERAGE OF MOST COMMON INTEREST RATES PAID on Various Categories of Time and Savings Deposits at Insured Commercial Banks, July 29, 1981 Bank size (total deposit in millions of dollars) TTyyppee ooff ddeeppoossiitt,, hhoollddeerr,, aanndd oorriiggiinnaall mmaattuurriittyy All size Less 20 up 50 up 100 up 500 up 1,000 groups than 20 to 50 to 100 to 500 to 1,000 and over Savings and small-denomination time deposits 9.98 10.78 10.49 10.29 9.85 9.39 9.56 Savings, total 5.21 5.23 5.24 5.17 5.21 5.21 5.21 Individuals and nonprofit organizations 5.21 5.23 5.24 5.16 5.21 5.21 5.21 Partnerships and corporations 5.23 5.17 5.23 5.22 5.24 5.21 5.25 Domestic governmental units 5.19 5.25 5.25 5.25 4.99 5.21 5.22 All other 5.23 5.25 5.25 5.25 5.19 5.11 5.23 Other time deposits in denominations of less than $100,000, total 6.64 6.72 6.74 6.46 6.64 6.67 6.62 Domestic governmental units, total 5.18 6.78 6.65 2.23 5.84 6.33 6.22 14 up to 90 days 6.03 7.18 5.57 5.51 4.69 6.23 6.43 90 up to 180 days 6.12 6.91 6.42 5.83 5.79 6.35 6.16 180 days up to 1 year 6.45 6.79 6.97 5.86 5.92 6.45 6.61 1 year and over 3.71 6.46 7.29 .81 7.03 6.33 5.93 Other than domestic government units, total 6.69 6.72 6.74 6.74 6.66 6.67 6.63 14 up to 90 days 5.18 5.25 5.04 5.03 5.25 5.04 5.23 90 up to 180 days 5.67 5.72 5.70 5.65 5.67 5.64 5.68 180 days up to 1 year 5.62 5.56 5.70 5.40 5.60 5.71 5.65 1 up to 2'/5years 5.99 6.00 6.00 6.00 5.95 5.95 6.00 2'/2 up to 4 years 6.47 6.50 6.48 6.49 6.43 6.47 6.46 4 up to 6 years 7.20 7.24 7.15 7.24 7.21 7.24 7.20 6 up to 8 years 7.46 7.50 7.42 7.49 7.48 7.48 7.45 8 years or more 7.65 7.74 7.65 7.39 7.65 7.67 7.67 IRA and Keogh Plan time deposits, with maturities of 3 years or more or variable ceiling rates 10.31 10.69 10.88 10.17 10.65 10.39 9.71 Money market certificates, exactly 6 months1 15.05 15.03 15.08 15.06 14.97 15.04 15.11 Variable interest rate ceiling time deposits of less than $100,000 with maturities of 2V5 years or more2 11.74 11.72 11.75 11.75 11.74 11.64 11.75 Club accounts3 4.04 2.64 3.19 3.98 4.11 4.52 4.71 1. See note 2 in table 4.10. reported on each type of deposit at each bank by the amount of that type of deposit 2. See notes 2 and 3 in table 4.10. outstanding. All banks that had either discontinued offering or never offered par- 3. Club accounts are excluded from all of the other categories. ticular types of deposit as of the survey date were excluded from the calculations for those specific types of deposits. NOTE. The average rates were calculated by weighting the most common rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • October 1981 4.20 DOMESTIC AND FOREIGN OFFICES, Commercial Banks with Assets of $100 Million or over1" Consolidated Report of Condition; June 30. 1981 Millions of dollars Banks with foreign offices- BBaannkkss IItteemm IInnssuurreedd wwiitthhoouutt ffoorreeiiggnn Total F of o f r i e c i e g s n -1 D o o f m fi e c s e t s i c ooffffiicceess 1 1,533,474 1,142,838 370,817 804,934 390,636 2 Cash and due from depository institutions 308.364 261.178 137.597 123.581 47.186 3 Currency and coin (U.S. and foreign) 13.476 7.734 263 7.471 5.742 4 Balances with Federal Reserve Banks 20.743 14.873 467 14.406 5.870 5 Balances with other central hanks 2.903 2.903 2.768 135 N.A. 6 Demand balances with commercial banks in United States 42.353 30.724 5.943 24.781 11.629 7 All other balances with depository institutions in United States and with banks in foreign countries 142.519 131.456 125.815 5,641 11.064 8 Time and savings balances with commercial banks in United States 8.979 2.797 1.186 1,611 6.183 9 Balances with other depository institutions in United States 376 118 36 82 258 10 Balances with banks in foreign countries 133.164 128.541 124.592 3.949 4.623 11 Foreign branches of other U.S. banks N.A. 25.836 24.446 1.390 N.A. 12 Other banks in foreign countries N.A. 102.705 100.146 2.559 N.A. 13 Cash items in process of collection 86.370 73.488 2.341 71.147 12.881 14 Total securities, loans, and lease financing receivables 1.115,759 789,053 204,984 584,069 326,707 13 Total securities, book value 225.648 126.732 9.434 117.298 98.915 16 U.S. Trcasurv 65.818 33,164 327 32.837 32.654 17 Obligations of other U.S. government agencies and corporations 35.061 16.342 56 16.286 18.719 18 Obligations of states and political subdivisions in United States 99.938 55.422 676 54,746 44.516 19 All other securities 24.832 21.805 8.376 13,429 3.027 20 Other bonds, notes, and debentures 10.466 8.354 6.918 1.436 2.112 21 Federal Reserve and corporate stock 1.801 1.351 175 1.177 450 22 Trading account securities 12.564 12.100 1.283 10,816 465 23 Federal funds sold and securities purchased under agreements to resell 50.763 30.545 746 29.800 20.217 24 Total loans, gross 847.091 632.602 194.304 438.298 214.489 25 LESS: Unearned incomc on loans 13.512 7.176 1.696 5.480 6.336 26 Allowance for possible loan loss 8.683 6.303 239 6.064 2.380 27 EQUALS: Loans, net 824.896 619.124 192.370 426.754 205.772 Total loans, gross, bv category 28 Real estate loans 201.448 122.519 7.075 115.443 78.929 29 Construction and land development N.A. N.A. N.A. 25.958 9.106 30 Secured by farmland N.A. N.A. N.A. 830 1.254 31 Secured by residential properties N.A. N.A. N.A. 65.976 44.356 32 1- to 4-family N.A. N.A. N.A. 62,589 42.240 33 FHA-insurcd or VA-euaranteed N.A. N.A. N.A. 3.855 2.050 34 Conventional N.A. N.A. N.A. 58.735 40.190 35 Multifamily N.A. N.A. N.A. 3.387 2.116 36 FHA-insurcd N.A. N.A. N.A. 211 88 37 Conventional N.A. N.A. N.A. 3.176 2.028 38 Secured by nonfarm nonresidential properties N.A. N.A. N.A. 22.679 24.212 39 Loans to financial institutions 85.150 80.678 37.930 42.748 4.472 40 REITs and mortgage companies in United States 5.629 4.916 156 4.760 713 41 Commercial banks in United States 9.830 7.842 633 7.209 1.988 42 U.S. branches and agencies of foreign banks N.A. 3.453 376 3,077 N.A. 43 Other commercial banks N.A. 4.389 257 4.132 N.A. 44 Banks in foreign countries 38.862 38.444 29.251 9.194 418 45 Foreign branches of other U.S. banks N.A. 547 170 377 N.A. 46 Other N.A. 37.897 29.080 8,816 N.A. 47 Finance companies in United States 10.87(1 10.449 262 10.187 420 48 Other financial institutions 19.959 19.026 7.629 11,397 933 49 Loans for purchasing or carrying securities 14.197 12.556 1.343 11.214 1.641 50 Brokers and dealers in securities 9.812 9.542 982 8.561 269 51 Other 4.386 3.014 361 2 653 1 372 52 Loans to finance agricultural production and other loans to farmers 10.724 6.384 718 5.666 4.340 53 Commercial and industrial loans 360.419 296.62(1 114.732 181,887 63.799 54 U.S. addressees (domicile) N.A. 181.905 9.288 172,617 N.A. 55 Non-U.S. addressees (domicile) N.A. 114.714 105.444 9,271 N.A. 56 Loans to individuals for household, family, and other personal expenditures 129.973 72.220 6.050 66.170 57.753 57 Installment loans N.A. N.A. N.A. 55,037 48.052 58 Passenger automobiles N.A. N.A. N.A. 16,845 20.422 59 Credit cards and related plans N.A. N.A. N.A. 19.162 9.220 60 Retail (charge account) credit card N.A. N.A. N.A. 15.560 7.925 61 Check and revolving credit N.A. N.A. N.A. 3.603 1.295 62 Mobile homes N.A. N.A. N.A. 3.364 3.368 63 Other installment loans N.A. N.A. N.A. 15.666 15.041 64 Other retail consumer goods N.A. N.A. N.A. 4.381 3,410 65 Residential property repair and modernization N.A. N.A. N.A. 3.620 3.813 66 Other installment loans for household, tamilv. and other personal expenditures N.A. N.A. N.A. 7.665 7.819 67 Single-pavment loans N.A. N.A. N.A. 11.133 9.701 68 All other loans 45.180 41.626 26.456 15,170 3.554 69 Loans to foreign governments and official institutions N.A. 27.031 24.178 2,854 N.A. 70 Other N.A. 14 595 2 278 12 317 N A 71 Lease financing receivables 14.453 12.651 2.435 10,217 1.802 72 Bank premises, furniture and fixtures, and other assets representing bank premises 20.452 12.480 1.282 11,199 7.972 73 Real estate owned other than bank premises 1.641 1.069 114 955 572 74 All other assets 87.257 79,059 26.841 85.131 8.199 75 Investment in unconsolidated subsidiaries and associated companies 1.321 1.271 974 297 51 76 Customers' liability on acceptances outstanding 45.898 45.571 9.187 36,383 327 77 U.S. addressees (domicile) N.A. 14.635 N.A. N.A. N.A. 78 Non-U.S. addressees (domicile) N.A. 30.936 N.A. N.A. N.A. 79 Net due from foreign branches, foreign subsidiaries. Edge and agreement subsidiaries N.A. N.A. 4.056 28.857 N.A. 8800 Other 4400..003388 •• 3322..221177 1122,,662244 1199..559933 77,,882211 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A75 4.20 Continued Banks with foreign offices2 BBaannkkss IItteemm IInnssuurreedd wwiitthhoouutt Total F o o ff r i e c i e g s n 3 D o o f m fi e c s e t s i c ff oo oo ff rr ff ee iicc iigg ee nn ss 81 Total liabilities and equity capital4 1,533,474 1,142,838 N.A. N.A. 390,636 82 Total liabilities excluding subordinated debt 1,448,223 1,087,199 370,527 749,584 361,024 83 Total deposits 1,178,746 857,917 307,820 550,096 320,830 84 Individuals, partnerships, and corporations 849,617 567,696 127,014 440,683 281,921 85 U.S. government 3,457 2,414 266 2,148 1,043 86 States and political subdivisions in United States 50,111 24,845 609 24,236 25,266 87 All other 259,349 250,332 177,825 72,507 9,017 88 Foreign governments and official institutions 36,416 36,246 28,222 8,025 170 89 Commercial banks in United States 81,574 73,091 19,466 53,625 8,483 90 U.S. branches and agencies of foreign banks N.A. 12,117 4,001 8,117 N.A. 91 Other commercial banks in United States N.A. 60,974 15,466 45,509 N.A. 92 Banks in foreign countries 141,359 140,995 130,137 10,857 364 93 Foreign branches of other U.S. banks N.A. 26,034 25,999 35 N.A. 94 Other banks in foreign countries N.A. 114,960 104,139 10,822 N.A. 95 Certified and officers' checks, travelers checks, and letters of credit sold for cash 16,212 12,629 2,106 10,523 3,583 96 Federal funds purchased and securities sold under agreements to repurchase in domestic offices and Edge and agreement subsidiaries 137,355 109,445 274 109,171 27,910 97 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed money 44,056 39,307 14,650 24,656 4,750 98 Interest-bearing demand notes (note balances) issued to U.S. Treasury 12,895 9,861 N.A. 9,861 3,033 99 Other liabilities for borrowed money 31,162 29,445 14,650 14,795 1,716 100 Mortgage indebtedness and liability for capitalized leases 1,958 1,293 17 1,276 666 101 All other liabilities 86,106 79,238 47,765 64,385 6,868 102 Acceptances executed and outstanding 46,068 45,741 7,738 38,003 327 103 Net due to foreign branches, foreign subsidiaries. Edge and agreement subsidiaries N.A. N.A. 28,857 4,056 N.A. 104 Other 40,038 33,497 11 170 22 326 6 541 105 Subordinated notes and debentures 5,750 4,085 291 3,794 1,665 106 Total equity capital4 79,501 51,554 N.A. N.A. 27,947 107 Preferred stock 103 10 N.A. N.A. 93 108 Common stock 15,533 10,097 N.A. N.A. 5,436 109 27,392 16,937 N.A. N.A. 10,456 110 Undivided profits and reserve for contingencies and other capital reserves 36,473 24,511 N.A. N.A. 11,962 111 Undivided profits 35,573 24,063 N.A. N.A. 11,510 112 Reserve for contingencies and other capital reserves 900 448 N.A. N.A. 452 MEMO Deposits in domestic offices 113 Total demand 312,208 218,311 0 218,311 93,897 114 Total savings 145,745 74,968 0 74,968 70,776 115 Total time 412,974 256,818 0 256,818 156,156 116 Time deposits of $100,000 or more 230,660 171,822 0 171,822 58,838 117 Certificates of deposit (CDs) in denominations of $100,000 or more 213,750 158.449 0 158,449 55,300 118 Other 16,910 13,373 0 13 373 3 537 119 Savings deposits authorized for automatic transfer and NOW accounts 34,803 18.273 0 18,273 1166,,553300 120 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks 122,279 58,642 0 58,642 63,636 121 Demand deposits adjusted5 173,553 100,222 0 100,222 73,331 122 Standby letters of credit, total 55,097 51,215 12,994 38,221 3,882 123 U.S. addressees (domicile) N.A. 36,091 N.A. N.A. N.A. 124 Non-U.S. addressees (domicile) N.A. 15,124 N.A. N.A. N.A. 125 Standby letters of credit conveyed to others through participations (included in total standby letters of credit) 2,731 2,536 389 2,146 195 126 Holdings of commercial paper included in total gross loans N.A. N.A. N.A. 302 708 Average for 30 calendar days (or calendar month) ending with report date 127 Total assets 1,491,296 1,108,309 334,677 773,632 382,988 128 Cash and due from depository institutions 284,810 242,754 131,846 110,907 42,056 129 Federal funds sold and securities purchased under agreements to resell 49,094 28,504 578 27,926 20,590 130 Total loans 821,727 614,849 190,341 424,507 206,878 131 Total deposits 1,141,210 825,519 303,457 522,062 315,691 132 Time CDs in denominations of $100,000 or more in domestic offices 210,364 N.A. N.A. 154,994 55,370 133 Federal funds purchased and securities sold under agreements to repurchase 140,944 113,146 375 112,771 27,797 134 Other liabilities for borrowed money 31,280 29,508 14,222 15,286 1,772 135 Number of banks 1,543 186 186 186 1,357 For notes see page A79. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • October 1981 4.21 DOMESTIC OFFICES. Insured Commercial Banks with Assets of $100 Million or over1-"'' Consolidated Report of Condition; June 30, 1981 Millions of dollars Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 1 1,195,569 1,016,647 760,648 255,999 178,922 2 Cash and due from depository institutions 170.767 152.836 101.866 50.970 17.931 3 Currency and coin (U.S. and foreign) 13.213 11.236 8.809 2.427 1.976 4 Balances with Federal Reserve Banks 20.276 19.928 15.140 4.7894 348 5 Balances with other central banks 135 135 134 0 6 Demand balances with commercial banks in United States 36.410 28.992 15.784 13.208 7.418 7 All other balances with depository institutions in United States and with banks in foreign countries 16.705 11.381 9.009 2.372 5.324 8 Time and savings balances with commercial banks in United States 7.793 4.968 4.204 764 2.825 9 Balances with other depository institutions in United States 340 137 58 78 203 HI Balances with banks in foreign countries 8.572 6.276 4.747 1.529 2,296 11 Cash items in process of collection 84.029 81.164 52.99(1 28.174 2.865 12 Total securities, loans, and lease financing receivables 910.775 759,424 581,800 177,624 151,351 13 Total securities, book value 216.213 171.826 129.389 42,438 44.387 14 U.S. Treasury 65.491 50.285 37.307 12.978 15,205 15 Obligations of other U.S. government agencies and corporations 35.005 26.247 20.989 5,258 8,758 ID Obligations of states and political subdivisions in United States 99.262 80.617 61.093 19.525 18,644 17 All other securities 16.456 14.677 10.000 4,677 1.779 18 Other bonds, notes, and debentures 3.548 2.145 1.610 536 1.403 19 Federal Reserve and corporate stock 1.626 1.453 1.096 357 174 20 Trading account securities 11.281 11.079 7.295 3.784 202 21 Federal funds sold and securities purchased under agreements to resell 50.017 42.640 32.694 9.946 7.377 22 Total loans, gross 652.787 550.245 424.043 126.201 102.542 23 LESS: Unearned income on loans 11.816 8.964 6.880 2,084 2.852 24 Allowance for possible loan loss 8.444 7.360 5.510 1.850 1.085 25 EQUALS: Loans, net 632.527 533.922 411.654 122,268 98.605 Total loans, gross, by category 26 Real estate loans 194.372 155.202 127.212 27,990 39.170 27 Construction and land development 35.064 29.619 23.064 6.555 5,445 28 Secured by farmland 2.084 1.552 1.421 131 532 29 Secured by residential properties 110.333 88.876 74.307 14.569 21.457 30 1- to 4-family 104.83(1 84.441 70.784 13,656 20.389 31 FHA-insured or VA-auaranteed 5.904 5.229 4.384 846 675 32 Conventional 98.925 79.211 66.401 12,811 19.714 33 Multifamily 5.503 4.435 3.522 913 1.068 34 FHA-insured 298 229 125 105 69 35 Conventional 5.204 4.206 3.398 808 999 36 Secured by nonfarm nonresidential properties 46.892 35.156 28.421 6,735 11.736 37 Loans to financial institutions 47.220 43.630 28.208 15,422 3,589 38 REITs and mortgage companies in United States 5.473 5.144 3.971 1.173 329 39 Commercial banks in United States 9,197 7.113 4.894 2.219 2.084 40 Banks in foreign countries 9.611 9.221 5.138 4.082 391 41 Finance companies in United States 10.608 10.371 6.359 4.012 236 42 Other financial institutions 12.33(1 11.782 7.845 3.936 549 43 Loans for purchasing or carrying securities 12.855 12.218 6.264 5.953 637 44 Brokers and dealers in securities 8.830 8.52(1 3.404 5,115 310 45 Other 4.025 3.698 2.860 838 327 46 Loans to finance agricultural production and other loans to farmers 10.006 8.927 8.253 675 1,079 47 Commercial and industrial loans 245.687 214.517 161.913 52.604 31,170 48 Loans to individuals for household, family, and other personal expenditures 123.923 98,673 80.556 18,117 25.250 49 Installment loans 103.089 81.953 67.341 14,612 21.136 50 Passenger automobiles 37.267 28.015 22.92S 5.090 9,252 51 Credit cards and related plans 28.383 25.433 20.830 4.603 2,950 52 Retail (charge account) credit card 23.485 21.240 17.637 3.603 2,245 53 Check and revolving credit 4.898 4.193 3.193 1.000 704 54 Mobile homes 6.732 5.395 4.910 486 1,336 55 Other installment loans 30.708 23.11(1 18.676 4.433 7.598 56 Other retail consumer goods 7.791 6.197 5.247 950 1.594 57 Residential property repair and modernization 7.433 5.356 4.357 999 2.077 58 Other installment loans for household, family, and other personal expenditures 15.484 11.557 9.072 2.485 3.927 59 Single-payment loans 20,834 16.720 13.215 3.505 4.114 60 All other loans 18.725 17.078 11.637 5.441 1.647 61 Lease financing receivables 12.018 11.036 8.063 2.973 982 62 Bank premises, furniture and fixtures, and other assets representing bank premises 19.171 15.502 12,645 2.857 3.669 63 Real estate owned other than bank premises 1,527 1.269 1.008 261 259 64 All other assets 93.329 87.617 63.330 24,287 5.712 65 Investment in unconsolidated subsidiaries and associated companies 348 325 299 26 23 66 Customers' liability on acceptances outstanding 36.711 35.999 25.807 10,192 712 67 Net due from foreign branches, foreign subsidiaries. Edge and agreement subsidiaries 28.857 27.585 19.833 7.752 1.272 6688 Other 2277..441144 2233..770088 1177..339900 66..331188 33..770066 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks All 4.21 Continued Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 69 Total liabilities and equity capital7 1,195,569 1,016,647 760,648 255,999 178,922 70 Total liabilities excluding subordinated debt 1,110,608 945,066 706,341 238,725 165,543 71 Total deposits 870,926 721,000 545,966 175,034 149,926 72 Individuals, partnerships, and corporations 722,604 590,620 462,242 128,378 131,983 73 U.S. government 3,191 2,711 2,000 712 480 74 States and political subdivisions in United States 49,501 37,326 30,748 6,578 12,175 75 All other 81,524 78,219 44,221 33,998 3,305 76 Foreign governments and official institutions 8,194 7,877 4,845 3,032 318 77 Commercial banks in United States 62,108 59,582 34,742 24,840 2,526 78 Banks in foreign countries 11,222 10,760 4,634 6,126 461 79 Certified and officers' checks, travelers checks, and letters of credit sold for cash 14,106 12,123 6,755 5,368 1,983 80 Demand deposits 312,208 270,660 185,604 85,056 41,548 81 Mutual savings banks 1,136 1,003 519 484 133 82 Other individuals, partnerships, and corporations 218,991 183,909 136,450 47,460 35,081 83 U.S. government 2,623 2,312 1,705 607 311 84 States and political subdivisions in United States 10,714 8,603 6,903 1,700 2,111 85 All other 64,638 62,709 33,271 29,438 1,929 86 Foreign governments and official institutions 2,685 2,600 938 1,662 84 87 Commercial banks in United States 52,004 50,418 28,306 22,112 1,585 88 Banks in foreign countries 9,950 9,691 4,027 5,664 260 89 Certified and officers' checks, travelers checks, and letters of credit sold for cash 14,106 12,123 6,755 5,368 1,983 90 Time deposits 412,974 336,143 268,561 67,581 76,831 91 Mutual savings banks 464 443 313 130 21 92 Other individuals, partnerships, and corporations 358,149 292,531 234,226 58,304 65,618 93 U.S. government 515 351 248 104 164 94 States and political subdivisions in United States 36,979 27,325 22,841 4,484 9,654 95 All other 16,867 15,492 10,933 4,559 1,375 96 Foreign governments and official institutions 5,496 5,263 3,894 1,369 233 97 Commercial banks in United States 10,100 9,159 6,432 2,728 940 98 Banks in foreign countries 1,271 1,070 607 462 201 99 Savings deposits 145,745 114,198 91,801 22,397 31,547 100 Mutual savings banks * * * * 0 101 Other individuals, partnerships, and corporations 143,864 112,733 90,733 22,001 31,130 102 Individuals and nonprofit organizations 137,615 108,179 87,092 21,087 29,436 103 Corporations and other profit organizations 6,248 4,554 3,641 913 1,694 104 U.S. government 53 48 47 1 5 105 States and political subdivisions in United States 1,809 1,398 1,004 394 410 106 All other 19 18 17 1 1 107 Foreign governments and official institutions 14 13 12 1 * 108 Commercial banks in United States 5 5 4 * * 109 Banks in foreign countries * * » * * 110 Federal funds purchased and securities sold under agreements to repurchase 137,081 127,481 92,443 35,038 9,600 111 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed money 29,406 27,638 17,360 10,277 1,768 112 Interest-bearing demand notes (note balances) issued to U.S. Treasury 12,895 11,844 8,764 3,080 1,051 113 Other liabilities for borrowed money 16,511 15,794 8,596 7,198 717 114 Mortgage indebtedness and liability for capitalized leases 1,941 1,600 1,336 264 341 115 All other liabilities 71,254 67,346 49,235 18,111 3,908 116 Acceptances executed and outstanding 38,331 37,618 27,373 10,245 713 117 Net due to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries 4,056 3,910 2,805 1,105 146 118 Other 28,867 25,818 19,056 6,762 3,050 119 Subordinated notes and debentures 5,459 4,308 3,082 1,225 1,151 120 Total equity capital7 79,502 67,274 51,225 16,049 12,228 MEMO 121 Time deposits of $100,000 or more 230,660 196,036 152,225 43,811 34,624 122 Certificates of deposit (CDs) in denominations of $100,000 or more 213,750 180,635 140,146 40,489 33,115 P3 Other 16,910 15,400 12,079 3,322 1,510 124 Savings deposits authorized for automatic transfer and NOW accounts 34,803 2277,,444411 2222,,339922 55,,004499 77,,336622 125 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 122,279 94,592 79,144 15,448 27,686 126 Demand deposits adjusted5 173,553 136,766 102,603 34,163 36,787 127 Total standby letters of credit 42,103 39,933 29,185 10,748 2,169 128 Conveyed to others through participation (included in standby letters of credit) 2,341 2,229 1,754 475 112 129 Holdings of commercial paper included in total gross loans 1,010 600 440 160 410 Average for 30 calendar days (or calendar month) ending with report date 130 Total assets 1,156,619 981,441 737,508 243,932 175,178 131 Cash and due from depository institutions 152,964 137,570 92,567 45,003 15,394 132 Federal funds sold and securities purchased under agreements to resell 48,516 41,131 31,822 9,310 7,385 133 Total loans 631,386 532,343 411,799 120,543 99,043 134 Total deposits 837,753 690,343 527,349 162,994 147,410 135 Time CDs in denominations of $100,000 or more in domestic offices 210,364 177,156 138,119 39,036 33,208 136 Federal funds purchased and securities sold under agreements to repurchase 140,569 131,487 95,351 36,136 9,082 137 Other liabilities for borrowed money 17,058 16,292 8,419 7,873 766 138 Number of banks 1,543 983 816 167 560 For notes see page A79. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • October 1981 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1" Consolidated Report of Condition; June 30, 1981 Millions of dollars Member banks Non IItteemm IInnssuurreedd Total National State insured 1 1,583,547 1,178,056 896,641 281,415 405 490 2 Cash and due from depository institutions 205.030 169,047 115,712 53,335 35,983 3 Currency and coin (U.S. and foreign) 18.547 13,702 10,890 2,812 4,845 4 Balances with Federal Reserve Banks 23.558 23,163 17,884 5.280 395 5 Balances with other central banks 135 135 134 » 0 6 Demand balances with commercial banks in United States 51.142 33,746 19.876 13.869 17,396 7 All other balances with depository institutions in United States and banks in foreign countries 24.603 15,111 12,289 2.822 9,492 8 Cash items in process of collection 87.045 83,190 54,638 28.553 3,854 9 Total securities, loans, and lease financing receivables 1,248,952 898,264 698,543 199,721 350,688 10 Total securities, book value 330.344 218.851 169,052 49,799 111,493 11 U.S. Treasury 104.383 66.068 50,435 15,632 38,315 12 Obligations of other U.S. government agencies and corporations 63,038 37,298 30.298 7,000 25,741 13 Obligations of states and political subdivisions in United States 144,478 99.967 77,623 22,344 44,511 14 All other securities 18,445 15,518 10.695 4.823 2.927 15 Federal funds sold and securities purchased under agreements to resell 71,586 51,731 40.386 11,345 19,855 16 Total loans, gross 863,959 636,582 496.468 140.114 227.376 17 LESS: Unearned income on loans 18,830 11.897 9.351 2.546 6,934 18 Allowance for possible loan loss 10,463 8.219 6.242 1.978 2,244 19 EQUALS: Loans, net 834,665 616,467 480,876 135,591 218,199 Total loans, gross, by category 20 Real estate loans 271,236 186,617 153.164 33,453 84,619 21 Construction and land development 40.305 31.478 24,693 6,785 8,827 22 Secured by farmland 8.438 3,699 3,107 592 4,739 23 Secured by residential properties 156.831 108,757 90,611 18,146 48,074 24 1- to 4-family 150,052 103,817 86.665 17,153 46,235 25 Multifamily 6,778 4,939 3.946 993 1,839 26 Secured by nonfarm nonresidential properties 65,663 42,684 34.754 7,930 22,979 27 Loans to financial institutions 49,479 44.721 29,191 15,530 4,757 28 Loans for purchasing or carrying securities 13,446 12,428 6,445 5,982 1,019 29 Loans to finance agricultural production and other loans to farmers 33,154 17,784 15,516 2,268 15,370 30 Commercial and industrial loans 295,543 234,941 179,413 55,528 60,602 31 Loans to individuals for household, family, and other personal expenditures 179.040 121,586 99,926 21.660 57,454 32 Installment loans 145,113 99,582 82.297 17.285 45,531 33 Passenger automobiles 59.898 37,510 30.993 6.517 22,388 34 Credit cards and related plans 29,523 25,954 21.289 4,665 3,569 35 Mobile homes 10,157 6.942 6.237 705 3,215 36 All other installment loans for household, family, and other personal expenditures 45.535 29,176 23.778 5,397 16,359 37 Single-payment loans 33.927 22,004 17,629 4,375 11,923 38 All other loans 22.061 18,506 12.813 5.693 3,555 39 Lease financing receivables 12.358 11,216 8.230 2.986 1,142 40 Bank premises, furniture and fixtures, and other assets representing bank premises 26,954 18,708 15.355 3,353 8,246 41 Real estate owned other than bank premises 2.159 1,500 1.197 304 659 42 All other assets 100,451 90.537 65.834 24,703 9,915 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A79 4.22 Continued Member banks NNoonn-- IItteemm IInnssuurreedd mmeemmbbeerr Total National State iinnssuurreedd 43 Total liabilities and equity capital7 1,583,547 1,178,056 896,641 281,415 405,490 44 Total liabilities excluding subordinated debt 1,464,095 1,092,174 830,307 261,867 371,921 45 Total deposits 1.210.831 861.729 664.510 197,219 349.102 4(i Individuals, partnerships, and corporations 1.028.652 717.933 569.364 148,570 310.719 4/ U.S. government 4.152 3.089 2.328 761 1.064 48 States and political subdivisions in United States 78.005 48.371 40.124 8,247 29.634 49 All other 82.719 78.911 44,829 34.082 3.807 50 Certified and oflicers' checks, travelers checks, and letters of credit sold tor cash 17.303 13.424 7.865 5.559 3.879 51 Demand deposits 395.549 305.732 215.456 90,276 89.817 32 Individuals, partnerships, and corporations 292.761 215.306 162.849 52,457 77,455 33 U.S. government 3.395 2.619 1.977 642 776 34 States and political subdivisions in United States 16.664 11.155 9.047 2,108 5.510 55 All other 65.426 63.228 33.718 29,510 2.198 56 Certified and officers' chccks. travelers checks, and letters of credit sold for cash 17.303 13.424 7.865 5,559 3.879 57 Time deposits 594.804 409.911 330.494 79.416 184.893 38 Other individuals, partnerships, and corporations 519.323 358.822 289.725 69.097 160,501 59 U.S. government 689 416 298 117 273 60 States and political subdivisions in United States 57.568 35.033 29.401 5,632 22,535 61 All other 17.224 15.641 11.070 4,570 1.584 62 Savings deposits 220.478 146.086 118.560 27,527 74.392 63 Corporations and other profit organizations 8.979 5.657 4.570 1.087 3.322 64 Other individuals, partnerships, and corporations 207.590 138.149 112,220 25.929 69.441 65 U.S. government 69 54 53 2 14 66 States and political subdivisions in United States 3.772 2.184 1.676 508 1.589 67 All other 68 43 40 2 26 68 143.136 130.531 95.030 35,501 12,605 69 Interest-bearing demand notes (note balances) issued to U.S. Treasury and other liabilities for borrowed money 30.842 28.430 18.032 10,398 2,412 70 Mortgage indebtedness and liabilitv for capitalized leases 2.329 1.739 1.447 292 590 /I All other liabilities 76.957 69.744 51.288 18,456 7.212 72 Subordinated notes and debentures 6.164 4.594 3.335 1.258 1.570 73 Total equity capital7 113,288 81,289 62,999 18,290 31,999 MLMO 74 Time deposits of $100,000 or more 271.595 211.919 165.935 45,984 59.676 73 Certificates of deposit (CDs) in denominations ol $100,000 or more 251.325 195.211 152.724 42,487 56,114 /6 Other 20.270 16 708 13 211 3 497 3 562 77 Savings deposits authorized for automatic transfer and NOW accounts 54.130 35.611 29.380 6.231 1188,,551199 78 Monev market time certificates of $10,000 and less than $100,000 with original maturities of 26 213.684 132 097 110 563 21 535 81 587 79 Demand deposits adjusted"' 252.324 168.987 130.090 38,898 83.337 80 Total standby letters of credit 43.473 40.498 29.671 10.827 2.975 Average for 30 calendar davs lor calendar month) ending with report (lute 81 Total deposits 1.175.379 829.993 644.953 185,040 345.386 82 Number of banks 14.443 5.471 4,453 1,018 8.972 1. Effective Dec. 31. 1978. the report of condition was substantially revised for 4. Equity capital is not allocated between the domestic and foreign offices of commercial banks. Commercial banks with assets less than $100 million and with banks with foreign offices. domestic offices only were given the option to complete either the abbreviated or 5. Demand deposits adjusted equal demand deposits other than domestic comthe standard set of reports. Banks with foreign offices began reporting in greater mercial interbank and U.S. government less cash items in process of collection. detail on a consolidated domestic and foreign basis. These tables reflect the varving 6. Domestic offices exclude branches in foreign countries and in U.S. territories levels of reporting detail. and possessions, subsidiaries in foreign countries, and all offices of Edge Act and 2. All transactions between domestic and foreign offices of a bank are reported agreement corporations wherever located. in "Net due from" and "Net due to" (lines 79 and 103). All other lines represent 7. This item contains the capital accounts of U.S. banks that have no Edge or transactions with parties other than the domestic and foreign offices of each bank. foreign operations and reflects the difference between domestic office assets and Since these intra-office transactions arc erased by consolidation, total assets and liabilities of U.S. banks with Edge or foreign operations excluding the capital liabilities are the sum of all except intra-office balances. accounts of their Edge or foreign subsidiaries. 3. Foreign offices include branches in foreign countries and in U.S. territories N.A. This item is unavailable for all or some of the banks because of the lesser and possessions, subsidiaries in foreign countries, and all offices of Edge Act and detail available from banks without foreign offices, the inapplicability of certain agreement corporations wherever located. items to banks that have only domestic offices, and the absence of detail on a fully consolidated basis for banks with foreign offices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Special Tables • October 1981 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 1981' Millions of dollars All states2 New York Other states2 CCaallii-- IItteemm ffoorrnniiaa,, IIlllliinnooiiss,, ttoottaall33 bbrraanncchheess Total Branches Agencies Branches Agencies Branches Agencies 1 Total assets4 171,116 119,230 51,886 105,364 16,830 32,101 6,721 7,086 3,015 7 Cash and due from depository institutions 35,036 30,992 4,045 30,280 3,727 225 547 160 98 3 Currency and coin (U.S. and foreign) 19 17 2 13 1 1 1 2 0 4 Balances with Federal Reserve Banks 650 574 76 509 42 25 15 49 10 5 Balances with other central banks 0 0 0 0 0 0 0 0 0 6 Demand balances with commercial banks in United States 22,721 20,290 2,430 20,224 2,321 97 30 34 14 7 All other balances with depository institutions in United States and with banks in foreign countries 9,505 8,922 583 8,348 436 76 498 72 74 8 Time and savings balances with commercial banks in United States 5,080 4,655 425 4,421 363 54 160 72 10 9 Balances with other depository institutions in United States 1,153 1,151 1 1,151 1 0 0 0 0 10 Balances with banks in foreign countries 3,272 3,115 157 2,776 71 22 338 1 64 11 Foreign branches of U.S. banks 896 846 49 747 32 5 99 0 12 12 Other banks in foreign countries 2,376 2,269 107 2,029 39 17 239 1 52 13 Cash items in process of collection 2,141 1,188 953 1,185 928 25 2 2 0 14 Total securities, loans, and lease financing receivables.. 97,835 70,036 27,799 60,633 9,165 15,861 5,721 3,658 2,798 IS Total securities, book value 3,701 2.313 1,388 2,096 1.267 121 186 30 0 16 U.S. Treasury 2,166 1.381 785 1,285 738 48 69 25 0 17 Obligations of other U.S. government agencies and corporations 356 101 255 91 239 16 7 3 0 18 Obligations of states and political subdivisions in United States 167 166 1 147 1 1 16 2 0 19 Other bonds, notes, debentures, and corporate stock 1,012 666 346 573 290 56 93 0 0 20 Federal funds sold and securities purchased under agreements to resell 7,367 5,259 2,108 4,989 1.579 534 162 85 18 Bv holder 21 Commercial banks in United States 6,374 4,552 1,822 4,354 1,331 496 122 53 18 22 Others 993 707 286 635 248 39 40 32 0 Bv type 23 One-day maturity or continuing contract 7,317 5,243 2,074 4,985 1,558 521 160 75 18 24 Securities purchased under agreements to resell... 125 74 51 51 30 21 1 .22 0 25 Other 7,191 5,169 2.023 4,934 1,528 500 159 53 18 26 Other securities purchased under agreements to resell 50 16 34 4 22 13 2 10 0 77 Total loans, gross 94,276 67,816 26.460 58,625 7.912 15,773 5,538 3,629 2,800 28 LESS: Unearned income on loans 144 95 49 89 14 33 3 2 2 29 EQUALS: Loans, net 94,133 67,721 26,411 58,535 7,898 15,739 5,535 3,627 2,798 Total loans, gross, by category 30 Real estate loans 3,139 865 2.275 634 496 1,072 24 191 722 31 Loans to financial institutions 33,328 27,004 6,324 24,425 1,659 4,538 2,364 216 127 37 Commercial banks in United States 20,794 16,813 3.982 14,854 677 3,303 1,774 185 1 33 U.S. branches and agencies of other foreign banks 19,796 15,963 3,834 14,013 621 3,212 1,766 184 0 34 Other commercial banks 998 850 148 841 56 91 8 1 1 35 Banks in foreign countries 11,532 9,365 2.168 8,922 886 1,179 417 25 102 36 Foreign branches of U.S. banks 1,077 944 133 884 37 87 59 0 10 37 Other 10,455 8,421 2.034 8,038 850 1,092 358 25 92 38 Other financial institutions 1,001 827 174 648 95 56 172 6 23 39 Loans for purchasing or carrying securities 1,282 883 399 863 342 59 13 6 0 40 Commercial and industrial loans 46,965 31,502 15,462 25,478 4,337 9,260 2,850 3,170 1,870 41 U.S. addressees (domicile) 28,421 18,588 9,833 13,800 2,238 5,983 2,497 2,286 1,618 42 Non-U.S. addressees (domicile) 18,543 12,915 5,629 11,678 2,099 3,277 353 884 253 43 Loans to individuals for household, family, and other personal expenditures 145 89 56 67 22 35 8 12 1 44 All other loans 9,417 7,472 1,945 7,158 1,057 809 280 34 79 45 Loans to foreign governments and official institutions 77,,882299 5,965 1,864 5,698 1,006 785 255 12 73 46 Other 1.588 1,507 81 1,461 50 24 25 22 6 47 Lease financing receivables 1 1 0 1 0 0 0 0 0 48 All other assets 30,878 12,944 17,934 9,463 2,358 15,482 291 3,183 102 49 Customers' liability on acceptances outstanding 8,954 5,813 3,141 5,695 1,876 1,232 83 35 34 SO U.S. addressees (domicile) 4,687 3,357 1,330 3,291 286 1,040 59 7 4 51 Non-U.S. addressees (domicile) 4,267 2,456 1,811 2,404 1,590 191 24 28 30 52 Net due from related banking institutions5 17,006 3.509 13.497 443 0 13,495 0 3,066 2 53 Other 4,919 3.622 1.297 3,325 482 755 208 82 65 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A81 4.30 Continued All states2 New York CCaallii-- Other states2 IItteemm ffoorrnniiaa,, IIlllliinnooiiss,, Total Branches Agencies Branches Agencies ttoottaall33 bbrraanncchheess Branches Agencies 54 Total liabilities4 171,116 119,230 51,886 105,364 16,830 32,101 6,721 7,086 3,015 55 Total deposits and credit balances 60,208 55,104 5,104 48,974 4,009 842 1,144 4,971 268 56 Individuals, partnerships, and corporations 27,178 26,251 927 20,383 196 579 1,011 4,845 163 57 U.S. addressees (domicile) 24,238 24,083 155 18,402 79 65 873 4,802 18 58 Non-U.S. addressees (domicile) 2,940 2,168 772 1,982 117 514 138 43 146 59 U.S. government, states, and political subdivisions in United States 97 97 0 26 0 0 1 70 0 60 All other 32,933 28,756 4,177 28,564 3,813 263 132 56 105 61 Foreign governments and official institutions 2,323 2,085 238 2,031 71 167 32 22 0 62 Commercial banks in United States 21,369 18,763 2,606 18,686 2,531 3 71 4 73 63 U.S. branches and agencies of other foreign banks 2,821 2,377 445 2,323 382 0 54 0 62 64 Other commercial banks in United States 18,548 16,386 2,162 16,364 2,149 3 18 4 11 65 Banks in foreign countries 2,470 2,216 255 2,190 184 58 4 19 14 66 Foreign branches of U.S. banks 19 19 0 17 0 2 0 0 0 67 Other banks in foreign countries 2,451 2,196 255 2,173 184 56 4 19 14 68 Certified and officers' checks, travelers checks, and letters of credit sold for cash 6,771 5,692 1,078 5,656 1,027 35 25 11 17 69 Demand deposits 26,470 25,277 1,193 25,067 1,027 87 107 101 83 70 Individuals, partnerships, and corporations 1,506 1,457 50 1,292 0 32 76 86 20 71 U.S. addressees (domicile) 903 898 5 748 0 7 69 79 0 72 Non-U.S. addressees (domicile) 603 559 45 545 0 25 8 6 20 73 U.S. government, states, and political subdivisions in United States 13 12 0 11 0 0 0 1 0 74 All other 24,952 23,808 1,143 23,763 1,027 54 30 14 63 75 Foreign governments and official institutions 398 386 11 383 0 11 2 2 0 76 Commercial banks in United States 16,885 16,840 45 16,837 0 2 1 1 44 77 U.S. branches and agencies of other foreign banks 1,668 1,635 34 1,635 0 0 0 0 34 78 Other commercial banks in United States 15,217 15,205 12 15,203 0 2 1 1 10 79 Banks in foreign countries 898 889 9 887 0 6 2 0 2 80 Certified and officers' checks, travelers checks. and letters of credit sold for cash 6,771 5,692 1,078 5,656 1,027 35 25 11 17 81 Time deposits 30,306 29,476 830 23,608 0 679 1,018 4,841 160 82 Individuals, partnerships, and corporations 25,096 24,511 586 18,858 0 473 915 4,731 120 83 U.S. addressees (domicile) 22,974 22,973 1 17,488 0 4 786 4,697 0 84 Non-U.S. addressees (domicile) 2,122 1,537 584 1,370 0 469 129 34 120 85 U.S. government, states, and political subdivisions in United States 84 84 0 15 0 0 1 68 0 86 All other 5,125 4,881 244 4,734 0 206 102 42 40 87 Foreign governments and official institutions 1,849 1,694 155 1,644 0 155 30 20 0 88 Commercial banks in United States 1,943 1,914 29 1,840 0 0 70 3 29 89 U.S. branches and agencies of other foreign banks 770 742 29 688 0 0 53 0 29 90 Other commercial banks in United States 1,172 1,172 0 1,152 0 0 17 3 0 91 Banks in foreign countries 1,334 1.273 61 1,250 0 51 2 19 12 92 Savings deposits 274 251 22 200 0 21 20 29 3 93 Individuals, partnerships, and corporations 273 251 22 200 0 21 20 28 3 94 U.S. addressees (domicile) 193 193 0 147 0 2 19 26 0 95 Non-U.S. addressees (domicile) 80 58 22 53 0 19 2 3 3 96 U.S. government, states, and political subdivisions in United States 0 0 0 0 0 0 0 0 0 97 All other 0 0 0 0 0 0 0 0 0 98 Credit balances 3,158 99 3,059 99 2,982 55 0 0 22 99 Individuals, partnerships, and corporations 302 33 269 33 196 53 0 0 21 100 U.S. addressees (domicile) 168 19 149 19 79 52 0 0 18 101 Non-U.S. addressees (domicile) 134 14 120 14 117 0 0 0 3 102 U.S. government, states, and political subdivisions in United States 0 0 0 0 0 0 0 0 0 103 All other 2,856 66 2,790 66 2,786 2 0 0 1 104 Foreign governments and official institutions 76 4 72 4 71 1 0 0 0 105 Commercial banks in United States 2,541 9 2,532 9 2,531 1 0 0 0 106 U.S. branches and agencies of other foreign banks 383 0 382 0 382 0 0 0 0 107 Other commercial banks in United States 2,159 9 2,150 9 2,149 1 0 0 0 108 Banks in foreign countries 239 53 185 53 184 1 0 0 0 For notes see page A83. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Special Tables • October 1981 4.30 Continued All states2 New York Other states2 Cali- Illinois, fornia. Total Branches Agencies Branches Agencies total3 branches Branches Agencies 109 Federal funds purchased and sold under agreement to repurchase 10,041 6.349 3.691 5.637 1,347 1,964 575 137 By holder 110 Commercial banks in United States 8.363 5.371 2.992 4.722 1.017 1.930 538 111 Others 1,678 978 700 915 330 34 37 By type 112 One-day maturity or continuing contract 9,650 5.989 3.661 5.318 1,347 1.934 539 113 Securities sold under agreements to repurchase ... 646 588 58 550 14 44 0 114 Other 9,004 5.401 3,603 4.768 1,333 1.890 539 115 Other securities sold under agreements to repurchase 390 360 30 319 0 30 36 116 Other liabilities for borrowed money 49,353 22.236 27.116 20.398 2,719 24.263 1.203 636 117 Owed to banks 46.720 20.456 26,264 18.783 2.577 23,561 1.171 503 118 U.S. addressees (domicile) 42.782 17.196 25.586 15.901 2,154 23,328 793 501 119 Non-U.S. addressees (domicile) 3.937 3.260 677 2.881 422 233 378 2 120 Owed to others 2.633 1.78(1 853 1.616 142 703 32 133 121 U.S. addressees (domicile) 2.077 1.313 764 1.157 131 634 30 125 122 Non-U.S. addressees (domicile) 556 468 88 458 12 69 123 All other liabilities 51,515 35.541 15.974 30.355 8,755 5,032 3.798 1,342 124 Acceptances executed and outstanding 10,248 6.530 3.719 6.408 1,920 1.762 88 34 125 Net aue to related banking institutions5 37,883 26.499 11,384 21.675 6,545 2.734 3.542 1.236 126 Other 3,384 2.512 872 2.272 290 536 167 72 MEMO 127 Time deposits of $100,000 or more 29,017 28.252 22.460 994 4.791 128 Certificates of deposit (CDs) in denominations of $100,000 or more 25.459 24.816 644 19.229 0 539 810 4.770 129 Other 3.558 3.437 121 3.231 0 121 184 21 130 Savings deposits authorized for automatic transfer and NOW accounts 19 14 4 0 3 4 6 131 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks 137 128 81 0 6 19 27 132 Time certificates of deposit in denominations of $100,000 or more with remaining maturity of more than 12 months 1.448 1.364 83 1.142 0 83 27 195 133 Acceptances refinanced with a U.S.-chartered bank ... 4.353 2.652 1,701 2.393 91 1,598 2 257 134 Statutory or regulatory asset pledge requirement 65.939 57.857 8.082 52.592 8,027 52 5.226 36 135 Statutory or regulatory asset maintenance requirement 7.202 6.690 512 3.780 143 2 189 2.721 136 Commercial letters of credit 8.349 4.901 3.448 4,307 976 2.420 360 234 1 1 3 3 7 8 Sta U n . d S b . y ad le d t r t e e s rs s e o e f s c ( r d e o d m it, i c t i o le t ) a l 6 4. . 6 0 2 5 7 9 4 3 . . 5 4 2 4 5 4 1 1 . . 5 1 3 8 4 3 3 3 , . 9 0 4 7 6 0 3 2 4 0 1 7 7 62 45 1 3 2 8 4 0 0 1 13 9 4 9 139 Non-U.S. addressees (domicile) 1.432 1.081 352 876 133 124 140 65 140 Standby letters of credit conveyed to others through participations (included in total standby letters of credit) 1.293 1.270 1.222 38 141 Holdings of commercial paper included in total gross loans 809 746 63 706 32 31 40 0 142 Holdings of acceptances included in total commercial and industrial loans 5.368 3.567 1.802 3.530 497 1,277 21 16 143 Immediately available funds with a maturity greater than one day (included in other liabilities for borrowed money) 32.145 14.309 17.836 13.155 1.607 16.139 842 312 144 Gross due from related banking institutions5 58.850 30.008 28.841 24,916 11.179 17.495 1.468 3,622 145 U.S. addressees (domicile) 21.277 7.226 14.051 3.647 1.466 12.532 157 3,423 146 Branches and agencies in United States 20,926 7.020 13.906 3,446 1.466 12,388 151 3,422 147 In the same state as reporter 605 93 512 63 10 493 0 30 1 14 4 9 8 U. I S n . o b t a h n e k r in s g ta t s e u s b sidiaries6 20.3 3 2 5 1 1 6.9 2 2 0 7 7 13.3 1 9 4 4 5 3.3 2 8 0 3 0 1,455 0 11,8 1 9 4 5 4 151 6 3,393 0 150 Non-U.S. addressees (domicile) 37.573 22.782 14,791 21.270 9.713 4,964 1.311 199 151 Head office and non-U.S. branches and agencies. 35.632 20.912 14,720 19,412 9.664 4,956 1.299 199 152 Non-U.S. banking companies and offices 1,941 1.870 71 1,858 49 8 12 0 153 Gross due to related banking institutions5 79.727 52.999 26.728 46,149 17,724 6,735 5.010 1,792 154 U.S. addressees (domicile) 21,656 12.298 9,357 8.752 5,725 2.756 2.459 1.087 155 Branches and agencies in United States 21,420 12.118 9.301 8.585 5,712 2.730 2.448 1.085 156 In the same state as reporter 370 148 222 66 11 211 0 82 157 In other states 21.050 11.970 9.079 8.519 5,701 2,519 2.488 1.003 158 U.S. banking subsidiaries6 236 180 56 166 13 26 11 2 159 Non-U.S. addressees (domicile) 58.071 40.700 17.371 37.397 11,999 3.979 2.551 705 1 1 6 6 0 1 H N e o a n d - U o . f S f . i c b e a a n n k d i n n g o c n o -U m . p S a . n b ie r s a n a c n h d e s o f a f n i d c es a gencies. 5 2 5 , ,9 1 0 6 3 8 38 1 . . 7 9 5 5 0 0 17.1 2 5 1 2 9 35 1 . . 4 9 8 1 7 0 11.8 1 8 17 2 3.91 6 7 2 2.51 3 2 9 705 0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U. S. Branches and Agencies A83 4.30 Continued All states2 New York Other states3 Item fo C r a n l i i- a, Illinois, total3 branches Total Branches Agencies Branches Agencies Branches Agencies Average for 30 calendar days (or calendar month) ending with report date 162 Total assets 170,299 116,723 53,577 103,443 17,982 32,597 6,509 6,726 3,042 163 Cash and due from depository institutions 28,637 25,112 3,525 24,418 3,229 202 538 152 98 164 Federal funds sold and securities purchased under agreements to resell 7,196 5,087 2,108 4,872 1,545 548 150 61 18 165 Total loans 91,632 66,035 25,597 57,361 7,551 15,323 5,261 3,390 2,747 166 Loans to banks in foreign countries 11,178 9,246 1,932 8,804 767 1,068 425 17 96 167 Total deposits and credit balances 54,544 49,855 4,689 44,205 3,582 870 1,019 4,617 251 168 Time CDs in denominations of $100,000 or more 25,005 24,404 601 19,275 0 498 4,425 110 169 Federal funds purchased and securities sold under agreements to repurchase 9,139 5,679 3,460 4,952 883 2,158 574 154 418 170 Other liabilities for borrowed money 47,976 21,858 26,118 20,021 2,444 23,544 1,231 607 129 171 Number of reports filed7 342 165 101 96 29 28 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, able through the G. 11 statistical release, gross balances were included in total assets "Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks." and total liabilities. Therefore, total asset and total liability figures in this table are This form was first used for reporting data as of June 30, 1980. From November not comparable to those in the G.ll tables. 1972 through May 1980, U.S. branches and agencies of foreign banks had filed a 5. "Related banking institutions" includes the foreign head office and other U.S. monthly FR 886a report. Aggregate data from that report were available through and foreign branches and agencies of the bank, the bank's parent holding company, the Federal Reserve statistical release G.ll, last issued on July 10, 1980. Data in and majority-owned banking subsidiaries of the bank and of its parent holding this table and in the G.ll tables are not strictly comparable because of differences company (including subsidiaries owned both directly and indirectly). Gross amounts in reporting panels and in definitions of balance sheet items. due from and due to related banking institutions are shown as memo items. 2. Includes the District of Columbia. 6. "U.S. banking subsidiaries" refers to U.S. banking subsidiaries majority- 3. Agencies account for virtually all of the assets and liabilities reported in owned by the foreign bank and by related foreign banks and includes U.S. offices California. of U.S.-chartered commercial banks, of Edge Act and Agreement corporations, 4. Total assets and total liabilities include net balances, if any , due from or due and of New York State (Article XII) investment companies. to related banking institutions in the United States and in foreign countries (see 7. In some cases two or more offices of a foreign bank within the same metfootnote 5). On the former monthly branch and agency report, avail- ropolitan area file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Federal Reserve Board of Governors PAUL A. VOLCKER, Chairman HENRY C. WALLICH FREDERICK H. SCHULTZ, Vice Chairman J. CHARLES PARTEE OFFICE OF BOARD MEMBERS OFFICE OF STAFF DIRECTOR FOR 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 THEODORE E. DOWNING, 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

A85 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 tTONY J. SALVAGGIO, Acting Staff Director THEODORE E. ALLISON, Staff Director $JOHN 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 IUYLESS 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 §HOWARD F. CRUMB, Acting 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 Chicago. tOn loan from the Federal Reserve Bank of Dallas. $On leave of absence. §On loan from the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 Federal Reserve Bulletin • November 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 SAM Y. CROSS, Manager for Foreign 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

A87 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 Edward H. Co veil 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 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. Boy kin 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

A88 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- each. PART 2, 1971. 153 pp. and PART 3, 1973. 131 pp. TIONS. 1974. 125 pp. Each volume $1.00; 10 or more to one address, $.85 ANNUAL REPORT. each. FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or OPEN MARKET POLICIES AND OPERATING PROCEDURES— $2.00 each in the United States, its possessions, Canada, STAFF STUDIES. 1971. 218 pp. $2.00 each; 10 or more to and Mexico; 10 or more of same issue to one address, one address, $1.75 each. $18.00 per year or $1.75 each. Elsewhere, $24.00 per REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHAyear or $2.50 each. NISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint 1972. 220 pp. Each volume $3.00; 10 or more to one of Part I only) 1976. 682 pp. $5.00. address, $2.50 each. BANKING AND MONETARY STATISTICS, 1941-1970. 1976. THE ECONOMETRICS OF PRICE DETERMINATION CONFER- 1,168 pp. $15.00. ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 ANNUAL STATISTICAL DIGEST pp. Cloth ed. $5.00 each; 10 or more to one address, 1971-75. 1976. 339 pp. $4.00 per copy for each paid $4.50 each. Paper ed. $4.00 each; 10 or more to one subscription to Federal Reserve Bulletin; all others address, $3.60 each. $5.00 each. FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE 1972-76. 1977. 377 pp. $10.00 per copy. FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. 487 1973-77. 1978. 361 pp. $12.00 per copy. pp. $4.00 each; 10 or more to one address, $3.60 each. 1974-78. 1980. 305 pp. $10.00 per copy. LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS. 1970-79. 1981. 587 pp. $20.00 per copy. 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. FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one RIES OF CHARTS. Weekly. $15.00 per year or $.40 each in address, $1.50 each. the United States, its possessions, Canada, and Mexico; THE BANK HOLDING COMPANY MOVEMENT TO 1978: A 10 or more of same issue to one address, $13.50 per year COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to or $.35 each. Elsewhere, $20.00 per year or $.50 each. one address, $2.25 each. THE FEDERAL RESERVE ACT, as amended through December IMPROVING THE MONETARY AGGREGATES: STAFF PAPERS. 1976, with an appendix containing provisions of certain 1978. 170 pp. $4.00 each; 10 or more to one address, other statutes affecting the Federal Reserve System. 307 $3.75 each. pp. $2.50. 1977 CONSUMER CREDIT SURVEY. 1978. 119 pp. $2.00 each. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- FLOW OF FUNDS ACCOUNTS. 1949-1978. 1979. 171 pp. $1.75 ERAL RESERVE SYSTEM each; 10 or more to one address, $1.50 each. PUBLISHED INTERPRETATIONS OF THE BOARD OF GOVER- INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; NORS, as of June 30, 1980. $7.50. 10 or more to one address, $1.25 each. BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. 102 PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. pp. $1.00 each; 10 or more to one address, $.85 each. $13.50 each. REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY NEW MONETARY CONTROL PROCEDURES: FEDERAL RE- OF THE U.S. GOVERNMENT SECURITIES MARKET. 1969. SERVE STAFF STUDY, 1981. 48 pp. $.25 each; 10 or more to one address, $.20 each. FEDERAL RESERVE REGULATORY SERVICE. 1981. $150.00. JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOV- SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: ERNMENT SECURITIES MARKET; STAFF STUDIES—PART REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL 1. 1970. 86 pp. $.50 each; 10 or more to one address, $.40 ADJUSTMENT TECHNIQUES. 1981. 55 pp. $2.75 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A89 CONSUMER EDUCATION PAMPHLETS THE GNMA-GUARANTEED PASSTHROUGH SECURITY: MAR- Short pamphlets suitable for classroom use. Multiple KET DEVELOPMENT AND IMPLICATIONS FOR THE copies available without charge. GROWTH AND STABILITY OF HOME MORTGAGE LEND- ING, by David F. Seiders. Dec. 1979. 65 pp. Alice in Debitland PERFORMANCE AND CHARACTERISTICS OF EDGE CORPORA- The Board of Governors of the Federal Reserve System TIONS, by James V. Houpt. Feb. 1981. 56 pp. Consumer Handbook To Credit Protection Laws BANKING STRUCTURE AND PERFORMANCE AT THE STATE The Equal Credit Opportunity Act and . . . Age LEVEL DURING THE 1970s, by Stephen A. Rhoades. Mar. The Equal Credit Opportunity Act and . . . Credit Rights in 1981. 26 pp. Housing FEDERAL RESERVE DECISIONS ON BANK MERGERS AND AC- The Equal Credit Opportunity Act and . . . Doctors, Law- QUISITIONS DURING THE 1970s, by Stephen A. Rhoades. yers, Small Retailers, and Others Who May Provide Aug. 1981. 16 pp. Incidental Credit The Equal Credit Opportunity Act and . . . Women Fair Credit Billing REPRINTS The Board of Governors of the Federal Reserve System Most of the articles reprinted do not exceed 12 pages. The Federal Open Market Committee Federal Reserve Bank Board of Directors Measures of Security Credit. 12/70. Federal Reserve Banks Revision of Bank Credit Series. 12/71. Federal Reserve Glossary Assets and Liabilities of Foreign Branches of U.S. Banks. Monetary Control Act of 1980 2/72. How to File A Consumer Credit Complaint Bank Debits, Deposits, and Deposit Turnover—Revised Se- If You Borrow To Buy Stock ries. 7/72. If You Use A Credit Card Rates on Consumer Instalment Loans. 9/73. Truth in Leasing Industrial Electric Power Use. 1/76. U.S. Currency Revised Series for Member Bank Deposits and Aggregate What Truth in Lending Means to You Reserves. 4/76. Industrial Production—1976 Revision. 6/76. Federal Reserve Operations in Payment Mechanisms: A STAFF STUDIES.- Summaries Only Printed in the Summary. 6/76. Bulletin The Federal Budget in the 1970's. 9/78. Studies and papers on economic and financial subjects Perspectives on Personal Saving. 8/80. that are of general interest. Requests to obtain single copies The Impact of Rising Oil Prices on the Major Foreign of the full text or to be added to the mailing list for the series Industrial Countries. 10/80. may be sent to Publications Services. Federal Reserve and the Payments System: Upgrading Electronic Capabilities for the 1980s. 2/81. TIE-INS BETWEEN THE GRANTING OF CREDIT AND SALES OF Dealing with Inflation: Obstacles and Opportunities. 4/81. INSURANCE BY BANK HOLDING COMPANIES AND OTHER U.S. International Transactions in 1980. 4/81. LENDERS, by Robert A. Eisenbeis and Paul R. Schweit- Survey of Finance Companies, 1980. 5/81. zer. Feb. 1979. 75 pp. Bank Lending in Developing Countries. 10/81. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A90 Index to Statistical Tables References are to pages A3 through A83 although the prefix "A" is omitted in this index ACCEPTANCES, bankers, 10, 25, 27 Demand deposits—Continued Agricultural loans, commercial banks, 18, 19, 20, 26 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 24 Banks, by classes, 17, 18-21, 74-79 Subject to reserve requirements, 14 Domestic finance companies, 39 Turnover, 12 Federal Reserve Banks, 11 Depository institutions Foreign banks, U.S. branches and agencies, 22, Reserve requirements, 8 80-83 Reserves, 3, 4, 5, 14 Nonfinancial corporations, current, 38 Deposits (See also specific types) Savings institutions, 29 Banks, by classes, 3, 17, 18-21, 29, 75, 77, 79 Automobiles Federal Reserve Banks, 4, 11 Consumer installment credit, 42, 43 Turnover, 12 Production, 48, 49 Discount rates at Reserve Banks (See Interest rates) Discounts and advances by Reserve Banks (See Loans) BANKERS balances, 17, 18-20, 74, 76, 78 Dividends, corporate, 37 (See also Foreigners) Banks for Cooperatives, 35 EMPLOYMENT, 46, 47 Bonds (See also U.S. government securities) Eurodollars, 27 New issues, 36 Yields, 3 FARM mortgage loans, 41 Branch banks, 15, 21, 22, 56, 80-83 Federal agency obligations, 4, 10, 11, 12, 34 Business activity, nonfinancial, 46 Federal and federally sponsored credit agencies, 35 Business expenditures on new plant and equipment, 38 Federal finance Business loans (See Commercial and industrial loans) Debt subject to statutory limitation and types and ownership of gross debt, 32 CAPACITY utilization, 46 Receipts and outlays, 31 Capital accounts Treasury operating balance, 30 Banks, by classes, 17, 75, 77, 79 Federal Financing Bank, 30, 35 Federal Reserve Banks, 11 Federal funds, 3, 6, 18, 19, 20, 27, 30 Central banks, 68 Federal Home Loan Banks, 35 Certificates of deposit, 21, 27 Federal Home Loan Mortgage Corporation, 35, 40, 41 Commercial and industrial loans Federal Housing Administration, 35, 40, 41 Commercial banks, 15, 17, 22, 26 Federal Intermediate Credit Banks, 35 Weekly reporting banks, 18-22, 23 Federal Land Banks, 35, 41 Commercial banks Federal National Mortgage Association, 35, 40, 41 Assets and liabilities, 3, 15, 17, 18-21, 70-73, 74-79 Federal Reserve Banks Business loans, 26 Condition statement, 11 Commercial and industrial loans, 15, 17, 22, 23, 26 Discount rates (See Interest rates) Consumer loans held, by type, 42, 43 U.S. government securities held, 4, 11, 12, 32, 33 Loans sold outright, 21 Federal Reserve credit, 4, 5, 11, 12 Nondeposit funds, 16 Federal Reserve notes, 11 Number, by classes, 75, 77, 79 Federally sponsored credit agencies, 35 Real estate mortgages held, by holder and property, 41 Finance companies Commercial paper, 3, 25, 27, 39 Assets and liabilities, 39 Condition statements (See Assets and liabilities) Business credit, 39 Construction, 46, 50 Loans, 18, 19, 20, 42, 43 Consumer installment credit, 42, 43 Paper, 25, 27 Consumer prices, 46, 51 Financial institutions, loans to, 18, 19, 20 Consumption expenditures, 52, 53 Float, 4 Corporations Flow of funds, 44, 45 Profits and their distribution, 37 Foreign banks, assets and liabilities of U.S. branches and Security issues, 36, 65 agencies, 22, 80-83 Cost of living (See Consumer prices) Foreign currency operations, 11 Credit unions, 29, 42, 43 Foreign deposits in U.S. banks, 4, 11, 18, 19, 20 Currency and coin, 5, 17, 74, 76, 78 Foreign exchange rates, 68 Currency in circulation, 4, 13 Foreign trade, 55 Customer credit, stock market, 28 Foreigners Claims on, 56, 58, 61, 62, 63, 67 DEBITS to deposit accounts, 12 Liabilities to, 21, 56-60, 64-66 Debt (See specific types of debt or securities) Demand deposits GOLD Adjusted, commercial banks, 12, 14 Certificates, 11 Banks, by classes, 17, 18-21, 75, 77, 79 Stock, 4, 55 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A91 Government National Mortgage Association, 35, 40, 41 REAL estate loans Gross national product, 52, 53 Banks, by classes, 18-20, 41 Rates, terms, yields, and activity, 3, 40 HOUSING, new and existing units, 50 Savings institutions, 27 Type of holder and property mortgaged, 41 INCOME, personal and national, 46, 52, 53 Repurchase agreements and federal funds, 6, 18, 19, 20 Industrial production, 46, 48 Reserve requirements, 8 Installment loans, 42, 43 Reserves Insurance companies, 29, 32, 33, 41 Commercial banks, 17, 74, 76, 78 Insured commercial banks, 74-79 Depository institutions, 3, 4, 5, 14 Interbank loans and deposits, 17 Federal Reserve Banks, 11 Interest rates Member banks, 14 Bonds, 3 U.S. reserve assets, 55 Business loans of banks, 26 Residential mortgage loans, 40 Federal Reserve Banks, 3, 7 Retail credit and retail sales, 42, 43, 46 Foreign countries, 68 Money and capital markets, 3, 27 SAVING Mortgages, 3, 40 Flow of funds, 44, 45 Prime rate, commercial banks, 26 National income accounts, 53 Time and savings deposits, 9 Savings and loan assns., 3, 9, 29, 33, 41, 44 International capital transactions of the Savings deposits (See Time deposits) United States, 56-67 Savings institutions, selected assets and liabilities, 29 International organizations, 56-61, 64-67 Securities (See also U.S. government securities) Inventories, 52 Federal and federally sponsored agencies, 35 Investment companies, issues and assets, 37 Foreign transactions, 65 Investments (See also specific types) New issues, 36 Banks, by classes, 17, 29 Prices, 28 Commercial banks, 3, 15, 17, 18-20, 74, 76, 78 Special drawing rights, 4, 11, 54, 55 Federal Reserve Banks, 11, 12 State and local governments Savings institutions, 29, 41 Deposits, 18, 19, 20 Holdings of U.S. government securities, 32, 33 LABOR force, 47 New security issues, 36 Life insurance companies (See Insurance companies) Ownership of securities of, 18, 19, 20, 29 Loans {See also specific types) Yields of securities, 3 Banks, by classes, 17, 18—21 Stock market, 28 Stocks (See also Securities) Commercial banks, 3, 15, 17, 18-21, 22, 26, 74, 76, 78 New issues, 36 Federal Reserve Banks, 3, 4, 5, 7, 11, 12 Prices, 28 Insured or guaranteed by United States, 40, 41 Savings institutions, 29, 41 TAX receipts, federal, 31 Thrift institutions (See Savings institutions) MANUFACTURING Time deposits, 3, 9, 12, 14, 17, 18-21, 75, 77, 79 Capacity utilization, 46 Trade, foreign, 55 Production, 46, 49 Treasury currency, Treasury cash, 4 Margin requirements, 28 Treasury deposits, 4, 11, 30 Member banks Treasury operating balance, 30 Borrowing at Federal Reserve Banks, 5, 11 Federal funds and repurchase agreements, 6 UNEMPLOYMENT, 47 Reserve requirements, 8 U.S. balance of payments, 54 Reserves and related items, 14 U.S. government balances Mining production, 49 Commercial bank holdings, 18, 19, 20 Mobile home shipments, 50 Member bank holdings, 14 Monetary aggregates, 3, 14 Treasury deposits at Reserve Banks, 4, 11, 30 Money and capital market rates (See Interest rates) U.S. government securities Money stock measures and components, 3, 13 Bank holdings, 17, 18-20, 32, 33, 74, 76, 78 Mortgages (See Real estate loans) Dealer transactions, positions, and financing, 34 Mutual funds (See Investment companies) Federal Reserve Bank holdings, 4, 11, 12, 32, 33 Mutual savings banks, 3, 9, 18-20, 29, 32, 33, 41 Foreign and international holdings and transactions, 11, 32, 64 NATIONAL defense outlays, 31 Open market transactions, 10 National income, 52 Outstanding, by type and ownership, 32, 33 Rates, 3, 27 OPEN market transactions, 10 Savings institutions, 29 Utilities, production, 49 PERSONAL income, 53 Prices VETERANS Administration, 40, 41 Consumer and producer, 46, 51 Stock market, 28 WEEKLY reporting banks, 18-23 Prime rate, commercial banks, 26 Wholesale (producer) prices, 46, 51 Production, 46, 48 Profits, corporate, 37 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A92 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories mkM B H i• HAWAII •J LEGEND Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch * Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis