Federal Reserve Bulletin, 1982-01

VOLUME 68 • NUMBER 1 • JANUARY 1982 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 L PERSPECTIVES ON THE FOOD AND achieve a balanced distribution of the na- AGRICULTURAL SITUATION tion's credit resources, but questions the need for the resolution at this time because Declines in farm commodity prices have it could be interpreted as calling for moneresulted in lower inflation rates for consumtary policy to back off from its anti-inflaer foods, but have also led to lower incomes tionary stance, before the Domestic Monein farming. tary Policy Subcommittee of the House Committee on Banking, Finance and Urban 13 MONETARY POLICY, MONEY SUPPL Y, Affairs, December 11, 1981. AND THE FEDERAL RESERVE'S OPERATING PROCEDURES 33 ANNOUNCEMENTS Developments on both the supply and the Issuance of capital adequacy guidelines for demand side of money, including innovafinancial institutions. tions in financial markets, enter into decisions on monetary policy operating proce- Adjustment of the amount of net transacdures, instruments, and targets. tion accounts to which the lowest (3 percent) reserve requirement will apply in 25 STAFF STUDIES 1982. "Below the Bottom Line: The Use of Con- New members of the Consumer Advisory tingencies and Commitments by Commer- Council. cial Banks" analyzes the extent to which Interpretation of rules for international banks use such off-balance-sheet items as banking facilities with respect to purchases loan commitments, standby letters of credand sales of financial assets in the secondit, commercial letters of credit, and finanary market. cial futures and forward transactions. Approval of fee schedule for coin wrapping "Multibank Holding Companies: Recent services. Evidence on Competition and Performance in Banking Markets" indicates a deconcen- Proposed amendment to Regulation Y as to trating effect from de novo entry by bank whether arranging equity financing with inholding companies. stitutional lenders for income-producing properties should be considered closely re- 28 INDUSTRIAL PRODUCTION lated to banking; proposed revisions of Federal Reserve charges to depository institu- Output declined about 2.1 percent in Detions for wire transfer and net settlement cember. services. 30 STATEMENT TO CONGRESS Deferral of mandatory effective date for Regulations M and Z to implement the Frederick H. Schultz, Vice Chairman, Truth in Lending Simplification and Reform Board of Governors, testifying on Joint Act. Resolution 365, says that the Board is sympathetic with the basic objective of the Joint Increase in price of the Federal Reserve Resolution to lower interest rates and to Regulatory Service and Handbooks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF THE 45 LEGAL DEVELOPMENTS FEDERAL OPEN MARKET COMMITTEE Amendments to Regulations A, D, and K; After noting the moderate shortfall in various bank holding company and bank growth of Ml-B in October from the 7 merger orders; and pending cases. percent annual rate that had been adopted for growth from September to December, Al FINANCIAL AND BUSINESS STATISTICS the Committee decided at the meeting on A3 Domestic Financial Statistics November 17, 1981, to seek behavior of A46 Domestic Nonfinancial Statistics reserve aggregates associated with growth A54 International Statistics of Ml-B from October to December at an A70 Special Tables annual rate of about 7 percent (after allowance for the impact of flows into NOW A69 GUIDE TO TABULAR PRESENTATION, accounts) and with growth at M2 at an STATISTICAL RELEASES, AND SPECIAL annual rate of around 11 percent. It was TABLES understood that somewhat more rapid growth of Ml-B, consistent with the objec- A80 BOARD OF GOVERNORS AND STAFF tive for growth over the fourth quarter adopted at the previous meeting, would be A82 FEDERAL OPEN MARKET COMMITTEE accepted in the event that transaction de- AND STAFF; ADVISORY COUNCILS mands for money proved to be stronger than anticipated; it was also understood A83 FEDERAL RESERVE BANKS, that moderate shortfalls from the growth BRANCHES, AND OFFICES path would not be unacceptable, particularly if broader aggregates continued to ex- A84 FEDERAL RESERVE BOARD pand rapidly. The intermeeting range for PUBLICATIONS the federal funds rate that provided a mechanism for initiating further consultation of A86 INDEX TO STATISTICAL TABLES the Committee was set at 11 to 15 percent. A88 MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Perspectives on the Food and Agricultural Situation This article was prepared by John Rosine and sizable contraction of meat supplies in 1981. In Paul Balides, With some sections based on the addition, timely rains that began in the spring analyses of Emanuel Melichar, of the Wages, eased concerns that drought might adversely Prices, and Productivity Section of the Board's affect crops for a second consecutive year, and Division of Research and Statistics. Footnotes for a number of crops the 1981 harvests even appear at the end of the article. exceeded previous highs. Nevertheless, supply developments are not Just over a year ago, following a poor harvest in the whole story of why farm prices fell and food 1980, food prices were widely expected to rise at price increases slowed. Per capita meat and double-digit rates in 1981. Drought during the poultry supplies were larger than expected in summer of 1980 had reduced the production of 1981, but were still not large enough to account key feed crops, and prices of these crops had for the marked relative declines in meat prices. soared. This situation seemed likely to reduce Moreover, a weakening of crop prices was almeat supplies in 1981 and drive consumer prices ready under way well before the magnitude of for meats and related products sharply higher. the favorable 1981 harvest became apparent. But, contrary to these expectations, a major Thus a full accounting of what happened to farm runup in consumer food prices did not occur. prices and food prices must consider both supply Instead, food prices in the consumer price index and demand factors. registered their smallest increase since 1976 (table 1). Prices for meats actually declined, and AGRICULTURAL SUPPLIES, AGGREGATE prices for most other foods slowed considerably. DEMAND, AND FARM COMMODITY PRICES Crop prices at the farm level also weakened as the year progressed, and by late 1981 were more Shifts in agricultural supplies often have a direct than 15 percent below levels of a year earlier. and immediate impact on the prices of farm Part of the explanation for this turn of events is products. An observable event, such as a freeze that the supply situation in 1981 did not deterio- or drought, causes visible damage to farm crops rate as much as was anticipated. For various and can be linked clearly to the subsequent price reasons, the poor crop of 1980 did not lead to a increases. Demand shifts are often more difficult 1. Selected measures of food prices and farm prices Percent change at compound annual rate, based on seasonally adjusted data1 Measure 1976 1977 1978 1979 1980 1981 1. CPI for food .6 8.0 11.8 10.2 10.2 4.0 2. Meats, poultry, fish, and eggs -8.5 4.2 20.7 8.8 8.6 -1.4 3. Fruits and vegetables 2.0 9.7 8.9 9.8 11.0 8.0 4. Other consumer foods2 5.0 9.6 9.3 10.7 10.7 5.5 5. PPI for finished foods -2.5 6.9 11.7 7.4 7.5 1.5 6. PPI for crude foods -3.4 1.4 18.3 10.6 8.6 -14.0 7. Prices received by farmers -3.0 1.0 23.2 7.4 10.7 -13.1 8. Livestock -7.6 6.2 32.0 6.6 2.1 -10.1 9. Crops 1.0 -4.0 11.6 8.5 23.5 -16.2 1. Changes are measured from December to December except that accounting for about two-thirds of total food in the consumer price for lines 1, 2, 3, and 4, the 1981 data are from December 1980 to index. November 1981, at compound annual rates. SOURCES. U.S. Department of Labor, except lines 7, 8, and 9 from 2. Series constructed by Federal Reserve staff; includes food items U.S. Department of Agriculture. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • January 1982 to identify. Consumer tastes and preferences are 2. Farm prices relative to the general price level not observable, and therefore demand shifts Ratio must often be inferred from data on output and prices. Moreover, demand shifts in the farm and food sectors are usually far less dramatic than in many other industries. Nevertheless, considerable evidence exists that farm commodity prices do respond to changes in demand. For example, farm prices tend to weaken during cyclical downturns in economic activity, and an examination of prices 1979 1980 1981 during past business contractions offers some Series shown is the producer price index for farm products divided perspective on price behavior during the past by the consumer price index for all items; this ratio was equal to 1.0 in two years of slow economic growth and recur- 1967, the base year for these price measures. Calculated from U.S. Department of Labor data. ring recessions. less severe during many of the business cycles 1. Farm prices relative to the general price level following World War II, both because the cycles were milder and because government price support and inventory programs reduced the volatility of farm prices. Nevertheless, a cyclical pattern in relative farm prices was still evident in some of the cycles of this period.3 Changes in agricultural markets and in agricultural policies in the past decade have left farm prices more exposed to market forces than they were in much of the postwar period, even though the price support measures of earlier years have 1969 1971 1973 1975 1977 1979 not been fully abandoned. In addition, supply Series shown is the producer price index for farm products divided and demand shifts for farm products were larger by the consumer price index for all items; this ratio was equal to 1.0 in 1967, the base year for these price measures. Shaded areas indicate than in the fifties and sixties. Thus, as might be periods of cyclical contraction. Calculated from U.S. Department of expected, farm prices became more volatile in Labor data. the 1970s (chart 1). Prices soared in 1972 and The National Bureau of Economic Research 1973 in response to strong worldwide demand, has identified fifteen business downturns that reduced livestock supplies, and disappointing occurred between 1913 and 1980. More than half crops. Next, they fell sharply, especially in relaof these downturns were associated with de- tive terms, as the deep recession of the midclines in farm prices of 10 percent or more seventies took hold and as harvests improved. relative to the general price level; milder price Farm prices perked up again in 1978 in response declines were observed in other cycles.1 A sus- to strengthening demand and declining beef suptained runup in farm prices did not occur in any plies, but began weakening once more in 1979. of these contractions, at least in relative terms.2 Farm prices remained volatile over the past The steepest declines in farm prices of this two years (chart 2), as developments in the century occurred during the 1920s and 1930s and general economy and in the farm sector interactreflected the economic conditions and institu- ed to cause wide swings in commodity prices. A tional characteristics of that period. The eco- brief, but particularly steep, falloff in economic nomic downturns of those years were relatively activity in early 1980 added to the downward severe, supply variations were large, and govern- price pressures that were already evident in ment programs to support farm prices were ei- livestock markets in the second half of 1979. A ther nonexistent or in an embryonic stage. In rebound in the economy in the second half of contrast, declines in farm prices were generally 1980 supported farm prices from the demand side Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Perspectives on the Food and Agricultural Situation 3 at the same time that a contraction in pork 2. Real consumer spending for food and beverages, supplies and the effects of the drought were • six postwar business cycles' bolstering prices from the supply side. However, Percent change at compound annual rates renewed weakness in farm commodity prices Phase of cycle Rate of change began showing up in late 1980. The price slide and period in spending persisted through most of 1981 and by year-end, CONTRACTIONS farm prices, relative to broader price measures, 1948:4 to 1949:4 -.1 1953:2 to 1954:2 -.7 had declined more than 20 percent from a year 1957:3 to 1958:2 -1.8 1960:2 to 1961:1 .2 earlier. 1969:4 to 1970:4 3.6 1973:4 to 1975:1 1.8 Average .5 DEMAND EFFECTS EXPANSIONS IN THE RECENT PERIOD 4 1949:4 to 1953:2 3.1 1954:2 to 1957:3 3.6 1958:2 to 1960:2 3.1 1961:1 to 1969:4 2.6 Merely noting the observed relationship between 1970:4 to 1973:4 .1 1975:1 to 1980:1 3.4 business contractions and declines in farm prices does not identify the cause-and-effect relation- Average 2.7 ships that are at work. These linkages have 1980:1 to 1981:3 .6 varied in importance from cycle to cycle,5 and there is no strong consensus on which linkage 1. Spending in constant 1972 dollars. has been most important in the recent period. SOURCE. U.S. Department of Commerce data. However, most observers, in discussing the recent influence of demand on farm prices, have generally has trended upward over the past two focused on three factors: the behavior of con- decades, but recessions have interrupted this sumer demand, developments in export markets, uptrend (chart 3). For example, this spending, in and shifts in inventory demand. real terms, turned down briefly in the 1970 recession and declined again near the beginning of the 1973-75 recession. Spending on purchased Consumer Demand meals and beverages then rose steadily during most of the economic expansion of the late Some evidence indicates that consumers econo- 1970s. However, it has since slowed again and by mize on food expenditures during periods of slow the fall of 1981 was only slightly higher than in income growth by shifting to lower-cost diets. In early 1979. Gasoline shortages and high meat the first six cyclical contractions of the postwar prices probably limited such spending temporarperiod, increases in real consumer spending on ily in mid-1979, but the sluggish performance of food and beverages averaged V2 percent a year (table 2). In contrast, spending increased at an 3. Consumer spending on annual rate of more than 2Vz percent, on average, purchased meals and beverages during the corresponding cyclical expansions. Reflecting the small gains in real income since early 1980, total real spending on food and beverages has increased at an annual rate of only about Vz percent in that period. Because the relative price of food has not been rising, the reduced rate of growth in spending appears to have reflected demand restraint, rather than shifts in the availability of food products. One way that consumers economize is to spend less on food away from home. Consumer Shaded areas indicate periods of cyclical contraction. U.S. Departspending for purchased meals and beverages ment of Commerce data at annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 Federal Reserve Bulletin • January 1982 recent quarters is, more than likely, a reflection sizable increases in the relative price of meats, of a sustained period of slow income growth. and sizable advances in meat production typical- Consumers can also economize by shifting to a ly cause sharp declines in meat prices. The price lower-cost mix of groceries for home consump- response, often a little weaker in recession years, tion. That seems to be happening now, although appears to have been unusually so in 1981. it is difficult to disentangle temporary cyclical Although commercial production of meat and effects from what may turn out to be permanent poultry was up only slightly in 1981, the consumshifts in market shares. For instance, in the meat er price index (CPI) for meats, poultry, fish, and industry a shift toward lower-cost poultry prod- eggs registered about a 10 percent drop in relaucts has been in progress for several years. In tive terms. This decline was a surprise because a late 1981, per capita beef production was down much larger increase in commercial production, about 20 percent from its 1976 peak, despite a as in 1974 or 1976, is usually necessary to keep moderate production upturn during the past two meat price inflation much below general price years. Pork production, which rose sharply inflation. through the late 1970s, fell at about a 10 percent It is tempting to argue that this softness in annual rate from mid-1980 to the fourth quarter meat prices primarily reflects cyclical weakness of 1981. Meanwhile, output in the poultry indus- in economic activity because consumer prefertry has continued to climb steadily except for ences should not change so suddenly. However, some temporary setbacks. apparent quantum shifts in the demand for meats Given these production data, weak consumer have been observed in earlier periods, and perdemand for meats and related products can be manent shifts in the current period cannot be inferred from the recent behavior of meat prices. ruled out. Meat production normally bears a fairly consistent relationship to the level of meat prices, relative to broader price measures (chart 4). Agricultural Exports Declines in meat production typically generate Early in the postwar period, exports constituted 4. Meat production and relative meat prices a relatively small share of the total demand for Relative meat prices, percent change U.S. farm products. Over time, however, a number of factors combined to boost U.S. agricultur- 20 al exports significantly (chart 5). World population grew steadily, and rising incomes in many industrial nations fostered increased demand for 1 • 1969 more expensive, protein-centered diets. More- 1979* over, a series of policy actions that reduced price 1977* support levels in the United States, combined 5. Agricultural exports Billions of 1972 dollars 5 -0+ 5 Percent change in red meat and poultry production per capita Production includes beef, pork, veal, lamb, and poultry; computations are based on annual averages. Change in relative prices is calculated as the percentage change in the consumer price index for meats, poultry, fish, and eggs minus the change in the consumer price index for all items excluding food, energy, and homeownership. Price changes are measured from December to December. Regression line is based on 1968-80 data. Estimate for 1981 is based on data through 1960 1967 1974 1981 November. Production is based on data from the U.S. Department of Agricul- Shaded areas indicate periods of cyclical contraction. U.S. Departture; prices, from U.S. Department of Labor. ment of Commerce data at annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Perspectives on the Food and Agricultural Situation 5 with a depreciating dollar, reduced the cost of same time that they increase the returns on U.S. crops to foreign buyers. financial investments. These developments, in Some of these factors that had been bolstering turn, encourage portfolio shifts, reduce invenexport growth through the 1970s were not so tory' demand, and put downward pressure on supportive in 1980 and 1981. Real income growth commodity prices as long as the inventory liquiin industrial nations was quite small in both dation is under way. years. The 1980 drought that reduced crop sup- Unfortunately, the effect of interest rates on plies in the United States also caused a spurt in inventories is difficult to sort out empirically. export prices that discouraged foreign buying. In One reason is that it is presumably the desired addition, an appreciation of more than 30 percent level of inventories that is altered by a change in in the trade-weighted exchange value of the rates, and some time may elapse before actual dollar from mid-1980 to mid-1981 compounded inventories are brought into line with desired the price increases that foreign customers faced.6 inventories. This lag may be especially long at As a result, the volume of farm exports, after the farm level, where producers have only limitreaching a new high in early 1981, fell markedly ed ability to adjust production in the short run. In as the year progressed. By the third quarter the addition, firms adjust inventories in response not exports of farm commodities had fallen 7 percent only to interest rates but to other forces as well, below their 1980 average. The quantity of corn such as supply uncertainties and sales prospects. shipments in the marketing year ending in Sep- Thus any simple correlation between interest tember 1981 was down 3 percent from a year rates and inventories should be interpreted with earlier. Soybean exports for the 1980-81 market- caution. ing year were off by 17 percent. The inventory experience of the past couple of In part, the recent fall in exports probably years has varied considerably across different reflected transitory supply and demand develop- parts of the farm and food sector. But one clear ments, rather than permanent shifts of export pattern that has emerged is that the burden of demand. Foreign buyers of corn and soybeans carrying inventories is being shifted back to the may have delayed their purchases this past sum- primary producers. For example, the inventory mer in the hope that crop prices would decline or of cattle in feedlots has been declining for about that the dollar appreciation would be partly re- three years in response to disappointing cattle versed. Their hopes were, in fact, realized. Corn prices, high feed costs, and record interest rates. and soybean prices fell sharply as U.S. crop But the cattle inventories held by primary proconditions improved over the summer; and by ducers—that is, the farmers and ranchers who year-end the dollar had surrendered about one- supply cattle to feedlots—were still increasing fourth of its earlier gains. In response, export according to the latest report in mid-1981. Simiactivity has picked up a little in some markets. Shipments of soybeans in the current marketing 6. Manufacturing and trade inventories year are running ahead of last year's levels. in the food sector Wheat exports, which had been well maintained all along, appear headed still higher in the current marketing year. Cora exports, on the other hand, are still lagging. Inventory Demand Qualitative reports on market activity this past year often attributed declining commodity prices to the inventory liquidations caused by historically high interest rates. High interest rates in- Inventories are measured in constant 1972 dollars and are the sum of inventories held by food manufacturers, wholesale grocers, and crease the cost of carrying inventories at the retail food stores. Based on U.S. Department of Commerce data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 Federal Reserve Bulletin • January 1982 larly, cutbacks in cattle feeding and in hog inven- Some of these supply or demand shifts have a tories have caused a greater inventory problem direct and immediate impact on the prices of among crop farmers who supply feed inputs for farm products, but only an indirect and delayed livestock production. influence on retail prices. For example, most At a broader level, total manufacturing and agricultural exports consist of raw farm products trade inventories held in the food sector have such as grains or soybeans. A fall in export been running below their levels of a year earlier demand thus affects the prices of these products for several quarters (chart 6); similar declines in immediately but affects retail prices only as the the constant-dollar value of these inventories lower prices of these raw materials are passed on have occurred before, but not often. In contrast, to consumers. Likewise, supply shifts at the farm total farm inventories appear to have increased level affect farm prices first and retail prices only in 1981, as a large harvest added to crop inven- later. tories while an apparent expansion of the cattle The effects of weakening consumer demand herd was augmenting livestock inventories. On may also show up sooner in farm prices than in balance, this pattern of inventory changes ap- retail prices, reflecting production and pricing pears consistent with the view that high carrying practices of the firms that process and distribute costs have had an effect on inventory demands. food products. Unlike farmers, who have no control over prices and can alter production only after long time lags, these firms typically have some control over prices and quantities, even in THE DYNAMICS OF PRICE ADJUSTMENT the short run. And, as in many other industrial markets, these firms adjust to short-run demand The changes in consumer spending, agricultural shifts by changing quantities, as well as prices.7 exports, and inventory levels can be integrated A weakening of demand at retail is thus "passed to illustrate some of the price dynamics at work back" to farmers through a series of quantity during the past two years. Slower growth in adjustments. But, because quantities at the farm consumer demand limits the flow of output that level cannot be altered quickly, farm prices bear can be absorbed in domestic markets. Falling the full brunt of adjusting to demand shifts. demand in foreign markets has a similar effect. Subsequently, retail prices are also lowered as High interest rates compound the effect of falling processing and marketing firms begin to react to demand as processing and marketing firms act the reduced costs of raw farm inputs. quickly to prevent any buildup of unwanted For many consumer foods, farm inputs make inventories. These shifts, considered individual- up only a small share of the total value added; ly, have not been especially dramatic in the however, very large changes in commodity recent period. However, taken together, they are prices, as in the past year, can influence prices reinforcing and tend to shift the main burden of significantly at the consumer level. This influadjusting to weak demand back to the primary ence can be seen more clearly by examining a producers at the farm level. Farmers, too, face series that excludes the volatile prices of meats high carrying costs and, without doubt, would and related products and fruits and vegetables also like to reduce inventories. But all market (chart 7). The remaining food items include such participants cannot reduce inventories at the things as cereals and bakery products, processed same time, and farmers, as the primary suppli- foods, and meals purchased away from home. ers, end up holding the stocks that buyers do not For many such foods, nonfarm labor costs acwant. Because farmers cannot adjust production count for a large share of the value added in quickly, farm prices may need to fall considera- production, and the prices of these foods usually bly in order for markets to clear, even if the shift tend to track labor costs quite closely.8 Changes in demand is only moderate. Indeed, in the in commodity prices are usually not large enough recent period, farm output has continued to rise to disrupt this relationship. But in 1973-74, when in the face of weak demand, thereby adding to enormous increases occurred in a broad range of the downward pressures on farm prices. farm commodity prices, these food prices rose Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Perspectives on the Food and Agricultural Situation 7 7. Food prices and labor costs change, was more than one-third below its 1979 level. Income for 1981, on balance, appears to Percent change, Q4 to Q4 have increased only moderately from its 1980 level. This experience thus reflects another episode of the violent income swings that have Unit labor Private nonfarm sector characterized the last decade—a period during which nominal farm income, at an annual rate, ranged from a peak of nearly $39 billion in late 1973 to a low of $16 billion in the second quarter of 1977. The last upswing in income occurred 1965 1969 1973 1977 1981 over the 1978-79 period; subsequently, the farm Unit labor costs—U.S. Department of Labor data; CPI series— sector has experienced eight consecutive quarbased on U.S. Department of Labor data, excludes prices of meats, poultry, fish, and eggs, and of fruits and vegetables. Data for 1981 are ters of relatively low profitability, an income for first three quarters. recession that approximates the 1976-77 period in magnitude and duration. The fall in income more than labor costs. And, during the recent has, in turn, caused financial adjustments period of sharp declines in the prices of several throughout the farm sector. commodities, increases in the prices of these Such income volatility is not a new phenomefoods have lagged labor costs. Many of the non in farming. On the contrary, the price swings commodities used in producing these foods, such preceding World War II caused enormous yearas sugar, grains, and soybeans, appeared to be in to-year volatility in farm incomes and extensive tight supply as 1981 began, but weak demand and financial distress among farmers. Reflecting that favorable crop developments eroded prices as historical experience, financial practices in farmthe year progressed. The result was reduced ing are geared to an environment that is perinflation rates for some consumer foods and ceived as inherently risky. Farmers rely more outright declines in prices for others. heavily on equity financing than do nonfarm businesses. Agricultural banks typically maintain lower loan-to-deposit ratios than their urban FARM INCOME counterparts. And a variety of farm programs help to insure farmers against particularly ad- The weakness in farm product prices over the verse outcomes. past two years, coupled with rising input costs, Nor has the drop in income affected all agriculhas pushed farm income down sharply (chart 8). tural producers in the same way. The financial In 1980, total net farm income, measured in conditions of crop farmers vary by crop and current dollars and adjusted for inventory region and also differ from those of livestock farmers; full-time farmers face constraints different from those part-time farmers face; and the 8. Net farm income financial situation of the typical beginning farmer is probably far more precarious than that of wellestablished operators. Keeping such distinctions in mind, some broad generalizations may still be made about financial problems in the farm sector during this period of reduced income flows. First, income declines have been so widespread that a large share of all full-time commercial farmers face a weakened cash-flow situation that is likely to worsen if farm 1953 incomes remain low through a third consecutive Net income of farm operators in current dollars and adjusted for year. Second, in recent months it appears that inventory change. Shaded areas indicate periods of cyclical contrac- land prices are no longer running ahead of inflation. Data from U.S. Department of Agriculture at annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 Federal Reserve Bulletin • January 1982 tion; thus farmers are now experiencing some ernment programs that supplement near-term erosion of real wealth, and debt-to-asset ratios cash flows. Cash payments are being made to are rising. Nevertheless, debt-to-asset ratios re- some farmers because the market prices of cermain relatively low for most farmers, thereby tain crops have fallen short of specified "target" diminishing the chances of insolvencies in the levels. In addition, the Commodity Credit Corperiod immediately ahead. poration is providing cash loans that help farmers to even out marketings over the year, and the volume of these loans appears to have increased considerably in the fourth quarter of 1981. Long- CASH FLOW ADJUSTMENTS er-run inventory financing is available to farmers Farmers can maintain net cash flows to some through the farmer-owned, but governmentextent by reducing cash outlays or exploiting sponsored, grain reserve, which isolates grain opportunities to increase cash receipts. Cash from the market for three years or until market resources can also be augmented in the short run prices reach a specified level. Toward year-end, through increased borrowing. In the recent peri- a growing volume of grain was being committed od, farmers have relied to a varying degree on all to the reserve, as farmers delayed sales in hopes three types of adjustment. that prices would improve. First, farmers have trimmed cash spending by More generally, farmers have added to their postponing investment outlays (chart 9). For available cash by increasing borrowings from example, constant-dollar spending for farm ma- farm lenders other than the Commodity Credit chinery, as measured in the national income Corporation. Farm debt increased $17 billion accounts, dropped 17 percent from 1979 to 1980 during 1980 and an estimated $20 billion in 1981. and remained low through the third quarter of But in the face of historically high interest rates, 1981. Real outlays for farm equipment over these the rate of increase dropped below that of earlier two years were at the lowest level since the early years, and farmers have sought out the lenders 1970s, a development that has contributed to offering attractive, below-market rates. Among weakening financial conditions among manufac- the lenders for which quarterly data are availturers of farm equipment. able, farm loans outstanding at the end of the Second, as is customary in a period of low third quarter of 1981 were about 12 percent market prices, farmers are benefiting from gov- above the year-earlier level. This increase is a little faster than the 11 percent rise in these loans 9. Farm equipment spending and farm debt during 1980, but gains in both years are well below the increase of 17 percent in 1979. Surveys Billions of 1972 dollars of rural banks indicate that borrowing to finance land and machinery purchases, cattle feeding, and dairy operations has fallen sharply; in contrast, borrowing to finance current operations or to finance inventories still appears relatively strong.9 Since the advent of high interest rates in late 1979 a major part of the net increase in borrowings has been from Federal Land Banks, at which the use of variable rates based on the cost of all outstanding funds has kept loan rates far below current market rates. The other major part of new borrowings was from the Farmers Home Administration, through which attractively priced loans were available to qualified borrow- Farm equipment spending—U.S. Department of Commerce data, ers under the natural disaster and economic annual rate; farm debt outstanding, which includes only the debt from emergency programs. institutions that report debt quarterly—Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Perspectives on the Food and Agricultural Situation 9 FARM ASSET VALUES assets such as farmland, but also the returns to operators' labor and management. The latter re- Increases in land prices have slowed in the past turns must be deleted from farm income in order two years. The average price of farmland was to obtain estimates of asset earnings, per se. about 10 percent higher in early 1981 than a year Estimates of asset earnings constructed in this earlier, less than the average annual rate of way show that, despite considerable year-to-year increase of 14 percent over the previous decade. volatility, the returns to farm assets, in constant Indications are that a further slowing has oc- dollars, have trended up since the early 1950s. curred since early 1981; outright declines have Farm technology changed greatly over that peribeen reported in some areas. od. The quantity of labor and the number of farm Whereas nominal land prices would naturally managers fell dramatically—by three-fourths and be expected to slow with the unwinding of infla- one-half, respectively—and the share of these tion, the recent income performance in farming inputs in total farm income declined substantialhas raised concerns that a significant decline in ly. Conversely, the estimated share of farm asland values could be under way in real terms, as sets in the income returns to farming10 rose from well. Although that possibility cannot be dis- less than one-third in the early 1950s to about missed, such a pessimistic conclusion should not three-fourths in the early 1980s (chart 10). The be based on the recent income data alone. Farm average rate of increase in real asset earnings incomes, land prices, and asset values do not over this period is estimated at between 4 and 5 always, or even typically, move in lockstep. On percent a year, roughly the same as the inflationthe contrary, increases in land prices since the adjusted rate of increase in the value of farm real 1950s have consistently outpaced the increases estate, which accounts for about three-fourths of in farm income. total farm assets.11 One reason why land prices and farm incomes Because the- real earning power of farmland have diverged is that the customary measures of has risen, its price increases in most years have farm income include not only the returns to outpaced the general inflation rate, thereby providing its owners with real capital appreciation. 10. Income returns to Over the past 30 years the annual value of these farm assets, labor, and management real capital gains has, on average, been as large as the current earnings of farm assets. Expressed as a rate, the total return to farm assets over this period—that is, the sum of the current return and the real capital gain—has averaged about 8 percent (chart 11). However, it has been significantly below this average in the past two years. A period of depressed asset earnings naturally kindles doubts about earnings prospects for the long run, particularly in an unsettled economic environment such as the current one. However, similar episodes of low earnings have occurred before, as in the early fifties, the late sixties, and the 1976-77 period, but low earnings have never persisted for long enough to undermine seriously the expectations of further real growth in asset earnings. Thus farm real estate prices in constant dollars have trended up almost continuously in the postwar period despite considerable i960 1967 1224 1221 variations in earnings from year to year (chart Calculated from U.S. Department of Agriculture data. Income 12). returns in 1972 dollars have been computed by deflating nominal returns by the Commerce Department's price deflator for personal During this long uptrend in values of farmland, consumption expenditures. Estimates for 1981 are preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 Federal Reserve Bulletin • January 1982 11. Rate of return to farm production assets 12. Farm assets, real estate prices, and asset earnings Percent Index, 1972-100 Billions of 1972 dollars 10 Income return Based on data from the U.S. Department of Agriculture. Nominal values as estimated by the USDA have been deflated by the Commerce Department's price deflator for personal consumption expenditures. Estimates for 1981 are preliminary. Ratio scale. these farmers may face harsh financial adjustments in the year ahead, such as the need to liquidate some real assets in order to remain in 1953 1960 1967 1974 1981 business. However, the vast majority of farmers are not currently in this situation. Total farm Based on data from the U.S. Department of Agriculture. Nominal returns as estimated by the USDA have been deflated by the Com- debt outstanding as of January 1, 1982, was still merce Department's price deflator for personal consumption expendi- only about one-sixth of the total value of farm tures. Estimates for 1981 are preliminary. assets, despite a weakening of equity positions over the past two years. This is a much lower farmers may not have been keenly aware of debt burden than that of most manufacturing earnings ratios and probably did not have a industries in the United States. Debt-to-asset precise, well-defined notion of long-run econom- ratios remain relatively low, on average, both ic prospects. But, even in the early postwar for the part-time farmers who have outside period, it was becoming clear that, whatever the sources of income and for full-time commercial economic forces at work, farming more land was farmers. consistently proving a better economic strategy than farming less land. That view has persisted to the present, as growth in asset earnings rein- SUMMARY AND CONCLUSIONS forced farmers' views that an expansionist strategy was the correct one. So long as economic Slow economic growth here and abroad, reinconditions do not lead farmers to question seri- forced by the effects of high interest rates and ously these underlying perceptions, farm real improved supply conditions, has led to signifiestate values can be maintained, even as current cant declines in farm commodity prices, relative earnings remain temporarily depressed. to prices in general. The pass-through of these In turn, as long as farm asset values are not declines to the retail level has been an important severely impaired, insolvency appears to pose an factor in reducing the rates of price change, immediate threat mainly to those farmers whose overall. At the same time, the price drop that has operations are highly dependent on short-term occurred in farm markets has weakened farm debt financing or, alternatively, have been ad- incomes. Cash flow problems have emerged in versely affected by a series of locally bad har- the farm sector, and increases in land prices have vests. If their incomes do not improve, some of slackened. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Perspectives on the Food and Agricultural Situation 11 Looking ahead, the downward influence of recent slump in export buying does not appear to falling commodity prices on consumer food signal a permanent deterioration of trade prosprices appears likely to wane as the year pro- pects. Thus there is reason to believe that, at a gresses. First, although farmers cannot adjust minimum, farm product prices will not fall nearly supplies much in the short run, they do eventual- so much in the coming year as they have in the ly reduce production in response to unfavorable year just ended, and they may in fact turn up. prices. Such adjustments are now apparent in Whether any firming of prices will be strong some farm markets. For example, pork produc- enough to bolster farm incomes much in 1982 ers, having trimmed output in 1981, are currently remains to be seen, and the financial conditions planning on further cutbacks in 1982. of some farmers may be precarious in the year In addition, a number of farm policy measures ahead. Yet, the farm sector has demonstrated a should counter the downward price pressures in repeated ability to rebound from adverse ecofarm markets: farm programs are currently sup- nomic conditions, and despite an unfavorable porting the prices of some products; the farmer- current situation, many observers continue to owned grain reserve should help isolate current believe that the long-run outlook for agriculture crop surpluses from the market; and new farm remains bright. So long as that belief is mainlegislation enacted in late 1981 promises some- tained and low earnings are perceived as tempowhat higher support levels for farm crops in rary, there should be underlying support for coming years. The tax cut scheduled for mid- values of farmland, despite the financial strains 1982 should increase consumer demands, and the that are currently evident. • FOOTNOTES 1. These computations were obtained by dividing the ences. This does not imply that supply effects can be ignored producer price index for farm products by the consumer price in the analysis of recent developments. index for all items. If alternative price measures were used, 5. Analysts today believe that these linkages work mainly the numerical results would vary somewhat, especially in the through product markets, but in the 1930s analysts believed recent period when the consumer price index has shown that cyclical weakness was also transmitted to the farm sector substantially higher inflation rates than other broad price through labor markets. According to this view, reduced job measures. However, the main point—that relative farm opportunities in the nonfarm sector bottled up surplus labor prices tend to fall in recessions—remains true even if alterna- in agriculture, thereby leading to excess production and tive price measures are used in the calculations. lower prices. This linkage is probably not important in more 2. In relative terms, farm prices rose temporarily following recent business cycles, as farming has become much more the cyclical peaks in 1913 and 1957. Prices remained flat for capital-intensive than in the 1930s. more than a year following the cyclical peak in 1945; they Causality has also been an issue. As late as the 1930s some then spurted unusually rapidly in the early stages of the studies tried to show that developments in the farm economy ensuing recovery as consumer demand pent up by the war caused business cycles, and not the reverse. Even then, was released. however, most analysts agreed on the main direction of 3. In the period following World War II, rapidly changing causality: that business cycles cause variability in farm technology pushed farmers' production costs lower, and prices, but that variability in farm prices is not a main cause cyclical swings in farm prices were therefore superimposed of business cycles. Farm prices were stable enough through on a long-term downtrend. In addition, as in other cycles, the 1950s and 1960s that supply developments in agriculture random supply disturbances sometimes temporarily over- could be safely ignored in business cycle analyses. But, with shadowed the cyclical influences on prices. the supply shocks of the 1970s, the consensus shifted back a The structure of agricultural markets in the early postwar little. Today most observers probably take the balanced view period also differed from that of other periods, and this that developments in the farm sector can influence the shape affected the degree to which supply and demand shifts were of business cycles significantly, even though the main causes transmitted into farm prices. In the 1950s a number of farm of cycles usually lie elsewhere. policy measures helped insulate agricultural prices from 6. In some countries, variable levies tend to offset the market forces. Price supports during those years limited the price changes in world markets. These levies drive a wedge extent to which farm prices could decline, and large inven- between world prices and the domestic prices in importing tories of farm crops tended to limit price increases. Shifts in countries. As farm crop prices rose in 1980, the levies supply or demand were thus absorbed more through changes declined, thereby buffering consumers in those countries in inventories or other quantity variables than through from the supply disturbances that bolstered world prices. changes in prices. 7. It would be too strong a statement to say that these 4. Because agricultural supply developments have been firms always change quantities alone in response to sluggish discussed extensively in a number of recent publications, this demand. Frequently, price concessions are also apparent in section focuses somewhat more on recent demand influ- the food sector, as retailers try to bolster consumer outlays. 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12 Federal Reserve Bulletin • January 1982 Nevertheless, it is clear that weakening of demand growth rates to a much greater extent, and these changes have does trigger a series of adjustments in activity in the food resulted in higher and more volatile interest rates on farm sector, just as it does to a much greater degree in the loans. This in turn has discouraged borrowing by farmers. At cyclically sensitive durable goods industries. These cyclical the same time, rural banks report that funds are readily patterns are evident in employment and workweek data (not available for farm lending and that most banks are actively discussed in this article), as well as in the inventory and sales seeking new farm loan accounts; this development is in data. contrast to the 1976-77 period, when strong loan demand led 8. Chart 7 shows a fairly high correlation between these to very tight credit conditions at many rural banks. food prices and measures of labor costs for the entire 10. The income returns to farming include not only the net economy. One possible reason for this is that firms in the incomes of farm proprietors, but also the interest paid on food processing and marketing sectors must pay competitive farm debt and the net rents paid to nonfarm landlords. These wages to retain workers. Also, similar inflationary pressures latter items must be included in computing asset earnings, may be at work in all these markets simultaneously. because they represent a portion of the total capital commit- 9. Five of the twelve District Banks in the Federal Reserve ted to farming. In a similar vein, asset earnings are not System conduct regular quarterly surveys that permit an necessarily a good indicator of farm proprietors' current wellongoing appraisal of changing credit conditions in agricultural being because creditors may have a prior claim on asset areas. The data collected in recent surveys generally show earnings. Measures that do focus on the returns to propriresults that are not surprising, given the current environment etors' equity are available from the Department of Agriculof slumping farm incomes and high interest rates. Loan ture. demand is easing at rural banks, farm, spending is off, and 11. Real capital gains and real income were computed lenders are increasingly apprehensive about the farm income using the Commerce Department's price deflator for personal situation. However, on the whole, these survey results consumption expenditures, rather than the consumer price suggest that agricultural bankers, as of early October, still index. In recent years the CPI has overstated the inflation perceived the situation as being within the range of recent rate faced by families that have not obtained new residential experience, similar in many ways to the low-income period of mortgage loans. Most farm families would fall in this catego- 1976 and 1977. One way in which it differs dramatically is that ry, and the personal consumption expenditure deflator thus in the late 1970s, the cost of deposit funds at rural banks appears more appropriate for computing changes in farmers' began to reflect changes in national money market interest real wealth and real incomes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

13 Monetary Policy, Money Supply, and the Federal Reserve's Operating Procedures This paper was prepared by Stephen H. Axilrod, affects markets partly through effects on expec- Staff Director for Monetary and Financial Poli- tations—though there may well be differences cy, Board of Governors of the Federal Reserve about which aspects of policy (for example, the System. It was prepared as background for a behavior of money, of interest rates, or of the seminar with financial and academic partici- federal budget) in practice have the greatest pants. The views expressed are, of course, those influence on the attitudes of businessmen, conof the author alone and not necessarily those of sumers, and financial market participants. the Board. This list of areas of agreement and differences is certainly not comprehensive. And others may The operations of a nation's central bank—in the want to alter its tone, if not make deletions or United States, the Federal Reserve System— additions. But it may serve as a reasonable have, of course, a powerful influence on the context for understanding the kinds of decisions economy. But the precise channels through that a central bank needs to make in formulating which this influence is felt, the importance of its objectives and in establishing the operating monetary policy to other governmental and pri- procedures by which it attempts to achieve those vate policies, the time lags involved in the pro- objectives. cess, and related matters have all been debated within the economics profession for a number of years. A fairly large area of agreement has proba- FORMULATING OBJECTIVES bly emerged, but differences of degree and possibly also of kind no doubt remain. A nation's central bank, in contrast to other Most, if not all, probably agree that "money" participants in the economy, may be said to matters, though differences seem to remain operate as a force "exogenous" to the ongoing about exactly how much it matters, and many flow of income and spending in an economy in may worry about the ability to define "money" the sense that, unlike businesses, it can "create" satisfactorily. Most probably also agree that, a product without necessarily being limited by within the context of money supply targeting, the the demand for it or the availability of means to willingness of the various sectors of the economy finance it. To produce bank reserves (or moneto alter their spending plans works mainly tary base), the product most immediately under through accompanying changes in interest rates its control, the central bank need only acquire a and other credit terms, though there is also U.S. government security from the market. No recognition that some direct role in affecting cash flow, liquidation of other assets, or borrowspending should be assigned to changes in wealth ing is needed to finance the acquisition: the brought about not only by changes in bond and central bank simply credits the account of the stock prices but also by changes in the amount of customer's bank with the funds, "creating" bank wealth held in such highly liquid forms as "mon- reserves as a result.1 The economy will react to ey." Finally, most probably agree that expecta- the production of these funds as production takes tions exert a strong influence on the behavior of participants in markets for financial instruments 1. These reserves are part of the monetary base, which is and for goods and services and that monetary measured as reserves of depository institutions plus currency in circulation. Reserves and the monetary base as operating policy (as well as other governmental policies) targets are discussed later. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 Federal Reserve Bulletin • January 1982 place and afterwards through changes in such food, energy, improved and coordinated fiscal economic variables as interest rates, prices, and and monetary management. ..." spending. But those responses do not inherently In the same act, the Congress went on to limit a central bank's capacity to act. The bank amend the Federal Reserve Act so as to require theoretically can go on creating, or not creating, the Federal Reserve twice a year to transmit to funds as long as it can meet its relatively minimal the Congress "... the objectives and plans of operating expenses. the Board of Governors and the Federal Open Because of this power to expand or contract its Market Committee with respect to ranges of balance sheet, there has been a continuing search growth or diminution of the monetary and credit for criteria by which to judge, or to restrain, the aggregates. . . ."2The Congress also stipulated central bank's operations. The economic objec- that "nothing in this act shall be interpreted to tives that should guide the Federal Reserve were require that the objectives and plans with respect spelled out in rather vague terms in the Federal to the ranges of growth or diminution of the Reserve Act. When originally passed in 1913, monetary and credit aggregates disclosed in the before the full extent of a central bank's capacity reports submitted under this section be achieved to expand or contract money and credit was if the Board of Governors and the Federal Open realized, the act noted the need to provide for an Market Committee determine they cannot or elastic currency, and said little else about eco- should not be achieved because of changing nomic policy. The amendment of 1933 creating conditions." the Federal Open Market Committee—the poli- The Federal Reserve had for some time before cymaking body in the Federal Reserve governing 1978 targeted monetary aggregates. But targeting the provision of reserves to the depository sys- of aggregates is now embodied in law and can be tem through purchase and sale of securities— said to represent a yardstick for measuring the was only a bit more specific. It indicated that Federal Reserve's performance and a criterion security transactions "shall be governed with a by which the Federal Reserve should govern its view to accommodating commerce and business own operations. Monetary and credit aggregates and with regard to their bearing upon the general were presumably chosen not only because they credit situation of the country." were thought to bear a reasonably close relation- As time passed, the operations of the Federal ship over time to the basic economic objectives Reserve came to be judged less in terms of such of the nation, but also because it was recognized criteria and more in terms of their contribution to that the Federal Reserve could be held responsibasic economic goals of the nation, like full or ble only for the financial variables over which it high levels of employment and price stability. In has a reasonable degree of influence and not for the early years after World War II, and against the performance year by year of the economy as the background of the prolonged depression of a whole (which responds to many factors besides the 1930s, the public and the Congress appeared Federal Reserve policy). The Federal Reserve to place more stress on high employment. The was asked, however, to report on how its mone- Employment Act of 1946 contained no more than tary objectives related to short-term economic a passing reference to price stability in stating goals of the administration and the Congress. It that the objectives of governmental policy were, was left to the Federal Reserve to define money among other things, ". . .to promote maximum and credit aggregates, and to assign relative employment, production, and purchasing pow- importance to them. er." In more recent times, the need to curb Before passing to a discussion of the aggreinflation and work toward price stability has gates, and then to related control issues, I might been stressed more strongly. Thus the original touch on other standards that might have been employment act was amended by the Full Em- set for limiting a central bank's freedom of ployment and Balanced Growth Act of 1978, action. Interest rates are the most obvious. A which stated that "Congress further declares that inflation is a major national problem requir- 2. This idea was earlier embodied in H. Con. Res. 133, ing improved government policies relating to approved in March 1975 by the House and the Senate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy, Money Supply, and the Federal Reserve's Operating Policy 15 lengthy essay could be written on this subject, "real" rates, the relationship between market but only one or two points might need to be made interest rates and spending is especially uncerin this context. tain. Thus it seems that interest rates are a highly First, making the central bank announce an risky target. However, as will be brought out in interest rate target for the year is tantamount to the discussion of money supply, there are also depriving it of control over the volume of money reasons for worry about the stability or predictand credit. It would force the central bank to ability of money demand. These reasons also accommodate all changes in demands for money suggest a certain flexibility in evaluating money and credit in order to avoid upward (or down- performance and in setting and attaining money ward) pressure on the interest rate.3 In an infla- targets. tionary period, it would amount to giving up on Maintenance of a fixed exchange rate for the efforts to control inflation should the chosen dollar in relation to foreign currencies is yet interest rate target have been wrong (for exam- another guide that has been advanced for moneple, too low relative to inflationary expecta- tary policy. As a target the exchange rate suffers tions). from many of the same deficiencies as interest Second, and equally basic, setting an interest rates. It exerts discipline by setting a "price" to rate target assumes that the proper value for the be attained, but at the cost of control of the rate can be known in advance, or at least known quantity of money and credit. The amount of with more certainty than the proper growth in money to be supplied would depend not simply money. Whether this is so depends, as many on conditions in the United States, but also on economists have been reiterating for some years policies and conditions in foreign countries. For now, on whether it is probable that the demand example, inflationary policies abroad that were for goods and services, which depends in part on causing foreign currencies to tend to depreciate interest rates, is sufficiently more stable or pre- relative to the dollar would force similar policies dictable than the demand for money in relation to here if the announced parity in exchange rates the nation's ultimate economic objectives.4 If the were to be maintained.5 demand for goods is sufficiently more predict- However, these reasons for not employing an able, then interest rates are a better target than interest rate or an exchange rate as a pre-anmoney; otherwise, money is the better target. nounced criterion forjudging monetary policy or Given the many forces apart from a particular for limiting a central bank's discretion are not level of interest rates that can influence business necessarily also reasons for ignoring interest rate and consumer spending (and interest costs seem or exchange rate movements in the execution of to influence federal government spending very policy, particularly in periods when changes in little), there is good reason to believe, and expe- financial technology and in the public's attitudes rience certainly suggests, that the demand for toward cash and other liquid assets increase goods and services is not very predictable. More- uncertainty about how to interpret the behavior over, in an environment in which volatile infla- of the money supply. For instance, in a period of tionary expectations affect the extent to which sharply declining interest rates, when money nominal market rates of interest in fact represent may also be running low relative to target—as in 3. Of course, such a constraint presupposes that agree- 5. A gold standard in some variant also has been advanced ment could be reached on which one among the many market as a guide for monetary policy. Whether that, too, would lead rates the central bank should try to control. It could hardly to the relinquishing of the central bank's discretion in controlcontrol the structure of rates as a whole, which would be ling money and credit depends on how strong a link was influenced by the pattern of credit demand and supply and by forged between the value of the gold stock and the capacity of expectations. the central bank to alter its assets. To the degree of strength 4. Following an argument set forth in, among other places, in such a link, the ability of the central bank to exert a William Poole, "Optimal Policy in a Simple Stochastic Macro discretionary impact on domestic money and credit would be Model," Quarterly Journal of Economics, vol. 84 (May limited by gold flows if gold once again became an important 1970), pp. 197-216, and Stephen F. LeRoy and David E. means of settlement in international trade, or it would be Lindsey, "Determining the Monetary Instrument: A Dia- limited by changes in the quantity of gold being offered to or grammatic Exposition," American Economic Review, vol. 68 demanded from the United States at an established fixed (December 1978), pp. 929-34. price. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 Federal Reserve Bulletin • January 1982 the spring of 1980—the desirability of permitting interfere with the ability of financial markets efthe money target to be breached, at least tempo- ficiently to allocate credit and that would at best rarily, on the down side would depend in part on be an administrative and economic nightmare. analyses of the impact of possible changes in Using money as a monetary target is not cash management behavior on money demand without its difficulties, of course. The Federal (given income and interest rates), and on the Reserve targets three principal measures of monimpact of lower interest rates on attitudes toward ey. One comprises currency in the hands of the inflation (that is, whether exacerbating such ex- public, demand deposits, and interest-bearing pectations or not). Or, if interest rates are rising deposits against which checks can be written, sharply, account will need to be taken of the and is labeled Ml.6 This narrow measure of extent to which that development might, under money was designed as a transactions concept to certain conditions, lead to financial dislocations measure the hand-to-hand currency and checkthat would threaten confidence in the economy ing accounts through which payments are made. or in the financial system. Finally, with regard to Two broader concepts of money are also curthe exchange rate, a sustained depreciation, for rently in use as targets. M2 includes assets in Ml example, could be signaling stronger underlying plus all deposit liabilities of depository instituinflationary pressures than might be otherwise tions (except large-denomination time deposits) expected—given money supply targets—or as well as money market funds, overnight repurcould be presaging such pressures later, suggest- chase agreements issued by commercial banks, ing that more restrictive monetary actions may and certain overnight Eurodollars. The other need to be considered. broad measure, M3, includes all of M2 plus largedenomination time deposits, term Eurodollars, and other repurchase agreements. MONEY SUPPLY TARGETS The current measures of money unavoidably represent a compromise among various concepts Although ranges for monetary and credit aggre- that might be employed, given the availability of gates are provided for in legislation, and a bank the necessary raw data and the not always clear credit measure is among the targets announced empirical evidence from statistical tests relating annually, the Federal Reserve has placed more various money measures to other economic variemphasis in recent years on controlling measures ables.7 The broader measures include assets of of money supply than it has on credit aggregates. various degrees of liquidity, all of which are Three reasons may be advanced for the second- assigned equal weight in the measure.8 Thus, to ary role assigned to credit. First, credit is fungi- take an extreme, an eight-year time certificate of ble; and it is difficult to argue that it matters deposit with a sizable penalty for early withdrawwhether credit is obtained at banks, other institu- al is included in M2 along with monies placed in tions, or in the open market. Spending can be short-term money market funds, which can be financed in any event, and many borrowers can accessed by check and for which the risk of readily shift from one lending source to another. capital loss is small. Clearly, a concept of money Second, while econometric relationships be- broader than Ml but including only highly liquid tween credit and gross national product may assets with short maturities would be an attracsometimes appear reasonably predictable, it tive alternative or supplement to present broad seems that changes in credit more reflect than cause changes in economic activity. Third, in the 6. Formerly Ml-B. 7. The rationale for current money measures, and a dedegree that control of credit would lead to contailed description of them, are presented in Thomas D. trol of GNP and in view of the fungibility of Simpson, "The Redefined Monetary Aggregates," FEDERAL credit, it seems that such control must involve RESERVE BULLETIN, vol. 66 (February 1980), pp. 97-114. 8. Efforts have been made to develop measures that prorestraints on total credit (including credit obvide for differential weighting of money supply components tained offshore) and not just on one or two by their degree of liquidity. See William A. Barnett, "Ecosectors of credit. Such restraints would require a nomic Monetary Aggregation: An Application of Index Numstructure of credit controls that would clearly ber and Aggregation Theory," Journal of Econometrics, vol. 14 (September 1980), pp. 11-48. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy, Money Supply, and the Federal Reserve's Operating Policy 17 money measures, but the statistics on remaining attractive accounts and services that substituted maturity of deposits and other similar assets are for non-interest-bearing demand deposits. Regunot available and would be very costly to collect. latory agencies facilitated these innovations In general, the best definition of money is one through decisions that permitted banks and thrift that is both capable of reasonably accurate mea- institutions to remain competitive with the marsurement and related in a highly predictable way ket and with each other. Interest-bearing savings to desirable economic performance over time. accounts offered transfer facilities by telephone That would, of course, then be the measure that or on a preauthorized basis; in New England the Federal Reserve should control. A number of checks could be written against savings acmoney measures are currently in use precisely counts. As market interest rates remained high, because it is not clear at this time which particu- banks also provided investment outlets for large lar measure does consistently bear the most blocs of funds through short-term repurchase predictable relationship to economic objectives.9 agreements and Eurodollar accounts. Finally, as A strong argument can be made for the narrow a result of the Monetary Control Act of 1980, money supply as the variable to be assigned interest-bearing transactions accounts could be highest priority for control purposes on the offered to consumers on a nationwide basis by all grounds that a relatively predictable amount of depository institutions. currency and transactions deposits is needed to But even with so sizable an expansion in the finance a given amount of the nation's income. array of accounts offered, depository institutions As a result, if growth in narrow money is con- found that other institutions, particularly money strained, growth in nominal income over time market funds, were able to attract large amounts will also be constrained, bringing it into line with of money into short-term, high-yielding, highly the rise in the nation's productive capacity and liquid accounts. Many of the money market thereby encouraging price stability. This argu- funds offered check-writing facilities, though ofment depends in part on the view that the public ten with a minimum denomination of check. cannot easily substitute other assets for cash in However, balances moved into money market carrying out transactions, or that if they do, such funds were in large part investments of individa substitution can be reasonably well predicted. uals (and trusts) who found these funds a conve- Particularly since the mid-1970s, the historical nient device for earning the high short-term relationship between narrow money and income, yields implicit in the downward-sloping yield given interest rates, has weakened. This seems curve of recent years. To that extent, the balto have been caused by reactions of the public, ances were not substitutes for cash. In some depository institutions, and regulatory agencies degree, nevertheless, they also represented to the exceptionally high short-term market in- funds that otherwise would have been kept in terest rates of recent years and the resulting high transactions accounts at depository institutions opportunity cost of holding non-interest-earning (which are subject to a relatively low fixeddemand deposits. At these rates, the public be- ceiling rate). The amount of money directly gan to reevaluate the amount of cash held for transferred out of transactions accounts into transactions or precautionary purposes, and money market funds appears to account for only large-scale transfers out of demand deposits to a small share of the funds, but the availability of other assets began to take place. the highly liquid money market funds may have At the same time, depository institutions encouraged consumers and others to economize sought to retain funds by offering increasingly further on transactions balances at depository institutions, investing those deposits elsewhere 9. For results of statistical tests relating demand for money or spending them.10 to income and other variables, including interest rates, or The proliferation of convenient alternatives for relating gross national product to money supplied, see D. J. Bennett, F. Brayton, E. Mauskopf, E. Offenbacher, and holding money for transactions and precaution- R. D. Porter, "Econometric Properties of the Redefined Monetary Aggregates" (Board of Governors of the Federal Reserve System, Division of Research and Statistics, Febru- 10. The funds had total assets of about $180 billion at the ary 1980; processed). end of 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 Federal Reserve Bulletin • January 1982 ary purposes, together with the very high oppor- historical patterns because they include a broad tunity cost of holding cash assets that earn enough spectrum of assets to increase the odds nothing or assets that earn at well below market for offsetting shifts among their components. rates because of regulatory ceilings, has in- Thus shifts by the public from Ml to money creased the difficulty of predicting the demand market funds would not also affect M2 because for money in relation to income. In the mid-1970s both are components of M2. there was evidence—which has again developed But it should not be concluded that, even in recently—that demand for narrow money (Ml) periods of institutional change, broader aggrehad shifted downward; that is, for given income gates are on balance automatically better as and interest rates, the public wanted to hold less monetary targets than are the narrow ones. Instimoney than earlier historical relationships would tutional change causes shifts into and out of such have suggested. Such shifts are, of course, much aggregates from assets not included in them (for easier to detect after the fact (though even then example, money market funds, which are includexperts disagree) than in process.11 In practice, ed in M2, compete against market securities, money demand appears to be highly volatile in which are not included in that aggregate). Moreany event, so that it is difficult to judge whether over, broader measures comprise such heterogean observed tendency in a current quarter for neous assets—a large and growing proportion of money to, say, fall short of a long-run path is a which bear market or market-related interest temporary aberration that will be reversed on its rates—that their relation to, or implications for, own, so to speak, or whether it marks the income may be subject to considerable uncerbeginning of a persistent structural shift. tainty. They are more influenced than is narrow These difficulties arising from changing public money by factors other than transactions deand institutional behavior toward money do not, mand related to income. The demand for broader however, necessarily imply that money is not a money measures also depends on such unpreuseful target for monetary policy. Attitudes gen- dictable factors as changes in the propensity to erally do not change so rapidly, or so unexpect- save out of income and the structure of interest edly, that monetary authorities cannot make rates—factors that might need to be accommoreasonable judgments year by year, or in the dated in monetary policy operations if an undecourse of a year, about the processes at work, sired economic outcome is to be avoided.12 their magnitude, and their significance for inter- Because of the difficulties and complexities of preting the aggregates. The changes are, howev- recent years in interpreting monetary aggregates, er, arguments—particularly in current circum- some have advocated targeting on a very narrow stances, when a marked change in financial concept of money, the monetary base (as noted structure is under way—for recognizing the need earlier, essentially currency in circulation plus for flexibility in judging actual developments in reserves of depository institutions). Using the money relative to targets. base as a monetary objective differs, of course, Target ranges, while still acting as constraints, from using it as an instrument for controlling Ml may have to be adhered to less rigidly than or M2. From one perspective, the base, or at otherwise, or they may need to be relatively wide least that part of it that is not borrowed by to provide leeway for unexpected demand shifts. depository institutions, could in principle be In addition, judgments may need to be based on viewed as basically exogenous to the depository the behavior of more than one monetary vari- system in the sense that it is directly controllable able. For instance, in a period of considerable by the Federal Reserve and does not necessarily institutional change, broader measures of money may show more stability than Ml relative to 12. For instance, an increase in broader money because of an enlarged propensity to save—if, for example, a tax cut 11. A discussion of this problem and possible explanations should induce at least an initial rise in saving relative to can be found in Thomas D. Simpson and Richard D. Porter, income—would need to be accommodated. If it were not—if "Some Issues Involving the Definition and Interpretation of less broad money were provided in line with, say, a pre-set Monetary Aggregates," in Controlling the Monetary Aggre- target—interest rates would be even higher than otherwise, gates III (Federal Reserve Bank of Boston, 1980). despite a greater propensity to save than expected. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy, Money Supply, and the Federal Reserve's Operating Policy 19 depend as well on the response of depositors and leeway for evaluating tendencies in the money banks to current economic and financial condi- supply in light of changes in economic conditions tions. From another perspective, however, use and financial structure.13 of the base as a monetary objective may be The monetary control procedure adopted by viewed as begging important questions. the Federal Reserve in October 1979 involved The essence of money supply targeting is to using reserve aggregates—on a day-to-day basis, control a variable that will in turn act as a nonborrowed reserves—as a means of controlreasonably predictable "governor" on the econ- ling the money supply. Before that, day-to-day omy. That variable has ordinarily been thought operations of the Federal Reserve had been to be a measure of money held as an asset by based on control of the federal funds rate—the businesses, consumers, and other sectors whose overnight market rate for bank reserves—as a ability to spend may be influenced by money device for reaching money supply objectives. available to them. But only one part of the base, The shift to the new procedure, which meant that currency in circulation, is directly held as an day-to-day fluctuations in the funds rate would asset by the public. The remainder is reserves of freely reflect variations in market demand for depository institutions. Although these reserves reserves, was made in an effort to find a more are only about 25 percent of the monetary base reliable way to control the money supply over as measured, they support a wide range of depos- the longer run. it assets that are held by the public as part of The various reserve aggregates that could be money measures. The total amount of deposits employed as a guide for monetary policy operaso supported will depend on public preferences tions include nonborrowed reserves (reserves for various forms of deposits, and can vary from provided by the Federal Reserve through open about nine times the amount of reserves if the market security transactions and from certain reserves support only transactions deposits to a other sources, such as float), total reserves (nonmuch, much larger amount if the public prefers borrowed reserves plus reserves obtained from to hold accounts that require very little or no borrowing at the Federal Reserve discount winreserves rather than transactions accounts. dow), and the monetary base (total reserves plus Thus the monetary base is a suitable monetary currency). Which of these aggregates is the best objective only if one is prepared to accept a wide operating guide depends on institutional strucrange of money supply outcomes, in terms of ture at the time. It also depends on assessment money in the hands of the public (currency plus by the monetary authority of the risks to its basic deposits and certain other assets). However, the policy from the varying disturbances to which base can be, and usually has been, viewed from the economy and financial markets are subject. another perspective—as an operating instrument The predictability of disturbances in the market for achieving money supply objectives (viewing for goods and services relative to the predictabilmoney solely as assets in the hands of the ity of disturbances in the demand for money public). In that context, it will be discussed, tends to influence the need for flexibility in along with other such instruments, in the next money supply targeting. Within the context of section. money targeting, the monetary authority would also need to consider how a reserve procedure might accommodate, at least partially, to short- CONTROL PROCEDURES 13. On a week-to-week basis the "noise" in the behavior of Procedures for controlling measures of the mon- the narrow money supply accounts for dollar changes of ey supply in the hands of the public that are about plus or minus $3.3 billion two-thirds of the time. On a monthly basis "noise" accounts for about plus or minus AVi taken as the guide for central bank operations percent at an annual rate of change two-thirds of the time, must provide for both control over the longer run and twice that amount 95 percent of the time. See David A. and flexibility in the short run. Short-run flexibil- Pierce, "Trend and Noise in the Monetary Aggregates" in New Monetary Control Procedures, vol. II, Federal Reserve ity is needed not only to deal with the inherent staff study (Board of Governors of the Federal Reserve volatility of money demand, but also to provide System, 1981). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 Federal Reserve Bulletin • January 1982 run variations in money demand in the interest of they will not in practice borrow all of the needed overall financial stability while assuring longer- reserves, but the money stock would be cushrun monetary control. ioned better from such disturbances than it In addition to disturbances affecting the de- would be under a total reserves or monetary base mand for money, there are disturbances in the operating procedure. supply of money that influence the effectiveness If there were a total reserves target, borrowing of particular reserve guides for controlling mon- by banks would be offset by reductions in noney. Disturbances on the supply side are caused borrowed reserves, so that in the end the aggreby such factors as unexpected variations in gate of reserves could not respond to changes in banks' demand for excess reserves and in the the multiplier relationship between aggregate remix of deposits that the public chooses to hold. serves and money. As a result, with supply-side With regard to deposit mix, because the current disturbances, a total reserves operating procereserve requirement structure has various re- dure would lead to errors in money supplied serve requirements for different types of depos- relative to money objectives. It would cause its, the amount of reserves that will support a greater variations in both interest rates and monparticular level of the money stock will change ey supply under those circumstances than would depending on the extent to which the public a nonborrowed reserve procedure (although, in holds deposits that require more or less reserves. practice, ongoing judgmental adjustments to the Alternative operating procedures tend to pro- multiplier on the basis of incoming information duce different outcomes for the pattern of inter- might moderate these variations). est rates and money growth in the face of distur- Some of the multiplier disturbances between bances in money demand or supply. A procedure total reserves and money could be eliminated designed to control tightly the supply of money through rationalization of the reserve requiremonth by month, if that were practicable, would ment structure. The Monetary Control Act of tend to produce sizable interest rate fluctuations 1980 embodies a structure applicable to all deif short-run variations in the demand for money pository institutions that is less complicated and were large (as experience suggests they are) as more suitable to control of the narrow money the amount demanded was forced into balance supply than was the previous structure, which with the given supply. On the other hand, a applied only to member banks; but that act will reserve operating procedure that permitted the not be fully phased in for a number of years. At supply of money to adjust somewhat to short-run that time, there will be no reserve requirements variations in demand—as would be the case in on personal time and savings deposits, while some degree with a nonborrowed reserve tar- there will be a reserve requirement on all transget—would tend to moderate short-term move- actions deposits offered by depository instituments in interest rates. Such a procedure would tions. Such a structure will tend to make it more be desirable in the degree that the monetary feasible to attempt to control narrow money in authority believed that some allowance should the short run by controlling total reserves or the be made for transitory variations in money de- base rather than their nonborrowed components mand or for the need to assess ongoing changes (assuming away for the moment difficulties in financial structure. raised by lagged reserve accounting), although A nonborrowed reserve target also has advan- the significance of greater controllability of tages under the present institutional structure in transactions deposits held in depository instituthe presence of disturbances from the side of tions would be lessened to the degree that transmoney supply. With a nonborrowed reserve tar- actions money may come to be held more outside get, if there is a large increase in banks' demand the reserve requirement system (such as in monfor excess reserves, or if the deposit mix changes ey market funds). so that banks need more required reserves than However, under those conditions the total had been anticipated for a given money supply, monetary base would probably be a less effective banks will be in a position to borrow the addi- control mechanism than total reserves. The reational excess or required reserves. Probably, son is related to the fact that currency has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy, Money Supply, and the Federal Reserve's Operating Policy 21 effectively a 100 percent reserve requirement, more slippage than control through the nonborwhile the deposit component of money has a rowed parts of each."17 This result largely refractional reserve requirement, now scheduled to flected the effect of money-supply-side disturbe, after full phase-in, 3 percent of the first $25 bances. In simulations that attempted to allow million of transactions deposits (which is estab- for institutional changes that would reduce such lished by law) and 12 percent for deposits above disturbances, the effectiveness of total reserves that amount.14 As a result, if, for example, cur- as a target improved markedly. Total reserves rency were running stronger than expected, were also found to be a more effective target than achievement of a predetermined target for the the total base because, as noted above, control monetary base would require a dollar-for-dollar through the base was still subject to slippage weakening in reserves of depository institutions, from the large effective reserve requirements on leading to a multiple contraction of bank deposits currency compared with those on deposits. and money. By contrast, achievement of a prede- Given these results, the natural question is termined total reserves target, under the circum- whether changes should be made in the institustances, would imply that the money stock tional environment to assure closer control of would be stronger than expected, but only by the money, particularly in the short run, in which amount by which currency is stronger than antic- slippage is by far the worst. Over the longer run, ipated. Thus the deviation of money from target short-run misses tend to average out. The desirwould be less with a total reserve target than ability of institutional change depends in part on with a monetary base target. whether short-run variations in money have sig- To determine the efficacy of various reserve nificant economic effects. According to the reoperating procedures, a recent Federal Reserve cent Federal Reserve staff study, "model simulastaff study compared the experience under the tions indicate that variations in money growth new procedure adopted since October 1979 with above or below targets lasting a quarter or so are alternatives.15 A conclusion drawn in the study not likely to have substantial economic efwas that, given the existing institutional environ- fects,"18 assuming that they are subsequently ment and the various disturbances to which the offset. But even if economic effects of short-run economy was subject, the procedure used pro- deviations from target are small or negligible, it duced results that could not have been improved seems clear that one is more likely to hit a longeron significantly with alternative techniques. run target the closer one attempts to adhere to it The summary paper evaluating the study in the short run.19 Moreover, the closer one is to found that the relationship between reserves and the long-run target as time goes on, the more money is loose in the short run—a month or so— confidence is the market likely to have in the and that over the year since the new technique achievement of the long-run target, so that whatwas adopted the "degree of variability [in the ever psychological benefits may be expected short-run relationship between reserves and from the process of monetary targeting—such as money] was in line with—in some cases less than reducing inflationary expectations—are more and in some cases more than—model simulation likely to be achieved sooner rather than later. results. . . ."16In addition, it was noted that "In Still, the need for institutional changes that tend the model simulations of the past year, control of to reduce variations in money from the supply money supply through strict adherence to a total reserve or total monetary base target produced 17. Ibid., p. 4. 18. Ibid., p. 20. 19. How soon to return to a long-run target path once 14. The amount to which the 3 percent is applied changes disturbances throw you off path is a critical operating queseach year in accordance with the indexing provision in the tion. In New Monetary Procedures, Peter Tinsley and others, Monetary Control Act. "Money Market Impacts of Alternative Operating Proce- 15. See particularly David Lindsey and others, "Monetary dures," found that about a three-month return path would Control Experience Under the New Operating Procedure" in provide reasonable assurance of hitting a one-year target. New Monetary Control Procedures, vol. II. Returning more quickly would greatly exaggerate interest 16. Stephen Axilrod, "Overview of Findings and Evalua- rate volatility with only a minor gain in the precision with tion," in ibid., vol. I, p. 3. which the longer-run target was hit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 Federal Reserve Bulletin • January 1982 side must also be judged in light of the extent to a change in approach to the Federal Reserve which scope should be provided for short-run discount window, in particular ensuring that the fluctuations from the money demand side, given discount rate fluctuates closely with market the inherent volatility of money flows and uncer- rates, even if it is not always maintained at a tainties about the timing and dimension of possi- penalty above such rates. ble shifts in the public's attitudes toward money The Federal Reserve has recently sought pubin its various forms. lic comment on the operational feasibility and If one could be certain about the concept of costs to depository institutions of a particular money to be controlled, the reserve require- CRR proposal. A CRR system would tighten the ments on deposits included in this concept clear- linkage between reserves, especially total rely should be uniform. If a narrow concept were serves, and the money supply. The improvement targeted, the uniform requirement would apply would be greatest in the short run, and much less only to transactions deposits. If the concept of so over the longer run (in which control is in any money were broader, the requirement would event not extremely loose). But benefits for need to be extended to other deposits. control in the short run should not be exaggerat- Yet another essay could be written on the ed. There would still be considerable slippage specific issues raised by reserve requirements, from other multiplier-type (or supply-side) dishowever. Some who seek control of money turbances, and there would still be short-run might also allege that no reserves should be demand-side disturbances that it might in any required of depository institutions. They would event be desirable to accommodate for reasons contend that the reserves necessarily kept by noted earlier. In that context, the benefits of depository institutions for ordinary business pur- CRR for monetary control, particularly in the poses will be sufficiently stable or predictable in short run, have generally been weighed against relation to deposits to serve as an operating guide the benefits of LRR for reducing the cost of for the central bank. That approach raises the reserve management to banks and against judgrisk of undue slippage, however, as institutions ments about the adequacy of LRR for monetary are likely to alter their reserve positions in re- control over the long run. sponse to changes in demands for credit and Policies toward the variability and level of the money and in market conditions. Control would discount rate in relation to changing market rates probably be more certain if there were a uniform involve all of the issues raised by whether the required reserve ratio, particularly if the ratio monetary system is more afflicted, at least in the were sufficiently high so that it was generally short run, by disturbances from the side of "binding" on financial institutions—that is, at a money demand or from the side of money suplevel that involved required reserves at least as ply. On the supply side, the discount window high as those the bulk of institutions would in any performs a valuable buffering function. It buffers event maintain for operating purposes.20 the money stock from, for example, disturbances Other changes have been suggested for im- to money supply from unanticipated increases in proving monetary control, whether or not the excess reserves or in required reserves needed to existing structure of reserve requirements were support a given money supply. The availability altered. Two have been particularly publicized: of the discount window, assuming a nonbor- (1) a shift from the present system of lagged rowed reserves operating target, permits the reserve requirements (LRR), in which reserves added reserves to be borrowed, thus moderating are based on deposits two weeks ago, to a the effects on the money supply and also on contemporaneous reserve system (CRR); and (2) market interest rates relative to what otherwise would take place. Similarly, reserves from the 20. That, incidentally, might necessitate paying a market discount window cushion the market from the interest rate on required reserves to forestall the development full impact of transitory variations in money of substitutes for transactions deposits that would be outside the reserve requirement system. On the other hand, a market demand. interest rate on required reserves would remove one of the While the availability of the discount window incentives for institutions to differentiate the yield between transactions and other accounts. offers clear benefits, discount rate policy can Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Policy, Money Supply, and the Federal Reserve's Operating Policy 23 interfere with monetary control if, for example, necessarily disappear. The discount rate would the rate is low relative to market rates in a period then have to be raised in an attempt to reestabof strong, sustained (not transitory) money de- lish the penalty, forcing market rates further mand pressures—or if the rate is kept high rela- upward above the new discount rate as long as tive to market rates in a period of sustained required reserves remained at advanced levels. weakness in money demand relative to target. A Under a nonborrowed reserves operating tarrising discount rate in a period of strong money get, a discount rate closely tied to recent market demand will work to speed up the response of rates would, because of this tendency for the depository institutions and bring money supply discount rate and market rates to ratchet up (or under control more promptly. However, some- down) together, increase the sensitivity of the thing of the same effect can also be achieved by depository system and money markets to downward adjustments in the path for nonbor- changes in money demand relative to money rowed reserves that guides open market opera- supply. But the greater sensitivity might be countions. Such adjustments will force even more terproductive if changes in money demand were borrowing on the depository system (given the transitory or if a rise in borrowing (with minimal discount rate) and hence pose a greater need to effects on market interest rates) were needed to restrain its expansion (given the restrictive ad- moderate shocks to money from the side of ministrative conditions imposed by discount win- supply.22 dow guidelines). Many have argued, nonetheless, that even given present administrative guidelines, mone- CONCLUDING COMMENT tary control would be less vulnerable to slippage if the discount rate were tied to market rates (or One of the reasons that a central bank adopts a at least moved promptly with such rates) and, reserve operating procedure is to provide greater moreover, if it were a penalty rate. An approach assurance than does targeting on interest rates that called for automatic adjustment of the dis- that sustained upward (or downward) movecount rate, however, involves the danger of ments in money demand do not lead to a cumulaupward or downward ratcheting of market rates tive overshooting (or undershooting) in money in the short run that may be excessive for mone- supply relative to target. The particular reserve tary control needs (for all of the demand and procedure, and the institutional reforms that also supply reasons earlier mentioned) and that also should be undertaken, depend in part on how may unduly disturb market functioning. tightly short-run movements in the money supply The danger of ratcheting is greatest if the should be controlled relative to longer-run tardiscount rate is set at a penalty above a recent gets. This in turn depends on how sure policymarket rate, or otherwise closely tied to one. If makers can be about the appropriateness of a required reserves of the depository system under specific long-run monetary target and of a specifthe circumstances were to expand rapidly in a ic short-run path designed to attain that target. current week, institutions would have to borrow On the evidence of recent years, it appears the added required reserves above and beyond that a certain flexibility is required for evaluating the reserves allowed for through open market emerging tendencies in the money supply relaoperations. Market interest rates would have to tive to objectives. There seems no doubt that rise above the prevailing discount rate to make reducing money growth is necessary to curbing banks willing to borrow the additional reserves.21 inflation. But financial innovations in recent The preexisting penalty of the discount rate above market rates, if there were one, would 22. If the day-to-day reserve target were based on total reserves, or the total base, the setting of the discount rate would seem to be a somewhat less important element in 21. Under LRR they would necessarily have to borrow, monetary control—assuming restrictive conditions for adsince required reserves cannot be reduced in a current week. ministering the discount window—except to the degree that a Under CRR, required reserves could be reduced, but the discount rate close to (or at a penalty above) market rates extent to which they would be reduced within a one-week would make borrowings more predictable and thereby facilireserve period is an open question. tate control of total reserves or the base. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 Federal Reserve Bulletin • January 1982 years have facilitated shifts of transactions-type deviations, however, should not be permitted to money, not to mention precautionary balances, cumulate over many months, unless policymakinto and out of an increasingly broad range of ers conclude that their underlying longer-run assets. The pace of change, while difficult to target has been misspecified. predict, has not, however, been so rapid or so Thus monetary policy can hardly avoid evaluimponderable as to vitiate the effectiveness of ating suggested changes in operating procedures the money supply as a long-run target. Still, and in the process of monetary targeting in terms unavoidably, a number of money measures need of their implications for the balance between the to be evaluated in a changing financial environ- needs for short-run flexibility and for assuring ment. longer-run monetary control. In a world in which Moreover, it seems clear that flows of transac- disturbances come not only from the market for tions-type money are inherently volatile, as goods and services, but also from the side of would be expected in so large an economy as money demand (given income and interest rates), ours, involving hundreds of billions of dollars in there is much to be said for a procedure that transactions every day. Thus an effort to tie the allows a certain "breathing room" for evaluation financial system rigidly into attainment of pre-set of ongoing trends in money in relation to the short-run monetary paths, given a longer-run economy. On the other hand, in a world in which target, is probably neither feasible nor desirable. monetary control has also been weakened be- That conclusion does not mean one should not cause of disturbances from the side of money aim at a pre-set path, but it does mean that an supply, there is also much to be said for instituoperating procedure should offer sufficient flexi- tional or procedural changes that strengthen the bility to allow for temporary deviations. Such relationship between reserves and money. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

25 Staff Studies The staffs of the Board of Governors of the In all cases the analyses and conclusions set Federal Reserve System and of the Federal forth are those of the authors and do not neces- Reserve Banks undertake studies that cover a sarily indicate concurrence by the Board of Govwide range of economic and financial subjects. ernors, by the Federal Reserve Banks, or by the In some instances the Federal Reserve System members of their staffs. finances similar studies by members of the aca- Single copies of the full text of each of the demic profession. studies or papers summarized in the BULLETIN From time to time, papers that are of general are available without charge. The list of Federal interest to the professions and to others are Reserve Board publications at the back of each selected for the Staff Studies series. These pa- BULLETIN includes a separate section entitled pers are summarized—or, occasionally, printed "Staff Studies" that lists the studies that are in full—in the FEDERAL RESERVE BULLETIN. currently available. STUDY SUMMARIES BELOW THE BOTTOM LINE: THE USE OF CONTINGENCIES AND COMMITMENTS BY COMMERCIAL BANKS Benjamin Wolkowitz, Peter R. Lloyd-Davies, Brian Charles Gendreau, Gerald A. Hanweck, and Michael A. Goldberg—Staff, Board of Governors Prepared as a staff paper in 1980. In the normal course of business, commercial their customers. These commitments have banks regularly enter into contracts that commit grown more rapidly than bank assets over the them to purchase or sell assets, at some future period 1974 through 1980, 13 percent a year date, contingent upon fulfillment of the con- compared with 10 percent. As of year-end 1980, tracts. Because these commitments do not in- loan commitments outstanding totaled $368.6 volve the current acquisition or sale of assets, billion. traditional accounting principles do not require Standby and commercial letters of credit are banks to recognize them on the balance sheet contracts in which a bank formally substitutes its (although some may appear as memoranda items creditworthiness for that of its customer and or footnotes). This study analyzes the extent to incurs a liability to make payment upon the which banks currently engage in four such off- presentation of certain documents. The standby balance-sheet transactions: loan commitments, letter of credit is used to insure the beneficiary standby letters of credit, commercial letters of against the bank customer's nonperformance of a credit (expanded to include bankers accep- contract, and the commercial letter of credit is tances), and financial futures and forward trans- used in conjunction with the movement or storactions. age of goods. By comparison with that in loan Loan commitments, perhaps the best known commitments, the growth in standby letters of off-balance-sheet item, enable banks to accom- credit has been dramatic. By year-end 1980, the modate the special borrowing needs of some of dollar volume of this contingent liability at all Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 Federal Reserve Bulletin • January 1982 insured commercial banks had increased to $46.9 been limited. However, bank involvement may billion, from $5.0 billion at year-end 1973, an increase substantially, particularly with the inannual growth rate of 38 percent. Only limited troduction of futures contracts designed to endata on commercial letters of credit are avail- able banks to hedge interest rate risk even better able; but, as some indication of their growth, the than these markets now permit. growth of a closely related liability, bankers The study concludes that although these offacceptances, has been a dramatic 30 percent a balance-sheet items have been abused in some year since year-end 1973. instances—abuses that prompted changes in The financial futures and forwards markets are their regulation—banks appear to use them in a new, and thus far bank involvement in them has prudent way. • MULTIBANK HOLDING COMPANIES.- RECENT EVIDENCE ON COMPETITION AND PERFORMANCE IN BANKING MARKETS Timothy J. Curry and John T. Rose—Staff, Board of Governors Prepared as a staff paper in late 1981. One of the major issues relating to the multibank ance, depending on the initiatives of the holding holding company movement concerns the impact company banks and the actions of competing of such organizations on competition and per- independent organizations. Studies in this area formance in banking markets. The staff of the have yielded diverse results, which may be due Federal Reserve Board reviewed the early litera- in part to different levels of aggregation of multiture in this area in 1978, and since then, others bank holding company activity within the marhave explored further the competitive effects of ket. Most recent evidence based on all multibank expansion of multibank holding companies. Most holding companies in a market generally points of the recent studies have focused on the impact either to no effect or to an anticompetitive effect of these companies on one or more elements of on market performance, according to various the structure-conduct-performance paradigm. measures. However, studies that distinguish be- The evidence clearly indicates a deconcentrat- tween bank holding companies headquartered ing effect from de novo entry by bank holding outside the market and those that are locally companies. Indeed, de novo banks established based yield somewhat different results. Outside by holding companies may result in more decon- holding companies produce either no effect or a centration than new, independent banks. Other procompetitive effect on various performance findings generally indicate little, if any, impact of measures; locally based holding companies have holding company affiliation on the market shares no effect on any aspect of performance. In terms of existing banks acquired as entry vehicles into of conduct, multibank holding companies appear new markets, regardless of the initial market to have a procompetitive effect, according to the share of the acquired bank. This latter evidence measures examined. points to little or no structural effect from acqui- Finally, two studies have departed from the sition entry by bank holding companies; however traditional structure-conduct-performance modonly limited testing of the impact of acquisition el in order to explore the competitive effects of entry on overall market structure has been per- large, geographically diversified banking firms. formed. Results from one study provide no support for Even if no change is observed in market struc- the argument that the presence of geographically ture, participation by multibank holding compa- diversified multibank holding companies in a nies may affect market conduct and perform- market will impede de novo entry. Evidence Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Staff Study Summaries 27 from the other study, however, indicates that, as bank) and changes in overall banking market participation by the state's dominant banking structure; (2) the relationship between the level firms in a market increases, interfirm rivalry of entry by outside holding companies and deteriorates, and in some cases, price perform- changes in market conduct and performance; (3) ance worsens. the connection between market rivalry (as a These findings suggest several areas for fur- proxy for market conduct) and market performther research: (1) the association between the ance; and (4) the significance of large, geographilevel of holding company entry (that is, at the cally diversified banking organizations for local foothold level or through acquisition of a leading market competition and performance. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 Industrial Production Released for publication January 15 ment continued to rise moderately. Output of construction supplies and business supplies de- Industrial production declined an estimated 2.1 clined further. percent in December, reflecting sharp reductions in most industries. This drop follows decreases of 1.9 and 1.6 percent in November and October respectively. Since its peak in July, industrial Seasonally adjusted, ratio scale, 1967 = 100 - TOTAL INDEX MATERIALS OUTPUT production has declined 6.9 percent. At 143.3 percent of the 1967 average, the index for De- PRODUCTS OUTPUT cember is 4.7 percent below its level of a year earlier. In market groupings, output of consumer BUSINESS EQUIPMENT, goods declined 1.9 percent in December. Sizable further reductions continued in the production of home goods, such as appliances and furniture. Another, but smaller, cutback occurred in auto- CONSUMER GOODS: BUSINESS SUPPLIES motive products, as autos were assembled at an — Durable >/" annual rate of 4.6 million units—down about 4 percent from the November rate. Additionally, output of consumer nondurable goods declined 1.1 percent, with an especially large reduction in Annual rate, millions of units 1967 = 100 output of clothing. Production of business equip- 160 r AUTOS: Stocks _ 16 - MANUFACTURING: 180 ment decreased 1.2 percent further in December, 1 1 2 0 0 0 ^ '• V A Sa W les I K VV IF y 7 ' \ Vr Y 1 1 8 2 0 - — N / ond y ur - a ^ ^ b ^ ^ l e __ D ^^ u rable \ v/ -" V : after similar declines in the preceding two } Domestic assemblies \/\ A /\ months; this reduction mainly reflected cuts in 60 T I I , . X 6 manufacturing, commercial, and farm equip- Federal Reserve indexes, seasonally adjusted. Latest figment. Production of defense and space equipures: December. Auto sales and stocks include imports. Major market groupings 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, GGGrrrooouuupppiiinnnggg 1981 1981 DDDeeeccc... 111999888000 tttooo DDDeeeccc... Nov.P Dec.e Aug. Sept. Oct. Nov. Dec. 111999888111 Total industrial production 146.4 143.3 -.2 -1.3 -1.6 -1.9 -2.1 -4.7 Products, total 147.8 145.8 -.3 -1.0 -.9 -1.2 -1.4 -2.4 Final products 147.5 145.5 -.4 -1.0 -.6 -1.1 -1.4 -1.6 Consumer goods 145.0 142.3 -.7 -1.2 -.6 -1.3 -1.9 -3.3 Durable 129.8 124.4 -2.7 -1.5 -2.9 -4.8 -4.2 -12.0 Nondurable 151.0 149.4 .1 -1.1 .3 -.1 -1.1 .1 Business equipment 178.4 176.3 -.2 -.9 -1.2 -1.2 -1.2 -.5 Defense and space 104.9 105.4 .2 .2 1.5 .4 .5 4.4 Intermediate products 149.2 147.0 .4 -1.4 -2.1 -1.5 -1.5 -5.4 Construction supplies ... 132.1 129.2 -.2 -3.0 -3.2 -2.4 -2.2 -11.0 Materials 144.1 139.5 -.1 -1.7 -2.6 -3.0 -3.2 -8.3 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

29 Major industry groupings 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, GGGrrrooouuupppiiinnnggg 1981 1981 DDDeeeccc... 111999888000 tttooo DDDeeeccc... NOV.P Dec.e Aug. Sept. Oct. Nov. Dec. 111999888111 Manufacturing 145.1 141.7 .0 -1.4 -1.9 -2.1 -2.3 -5.8 Durable 134.4 131.0 -.1 -1.7 -2.1 -2.5 -2.5 -6.6 Nondurable 160.5 157.2 .1 -.8 -1.6 -1.7 -2.1 -4.7 Mining 144.0 143.8 -.3 -.7 .5 -1.2 -.1 3.8 Utilities 167.9 167.0 -.7 -2.4 .4 -.3 -.5 -.5 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. Production of materials declined sharply, as it below its level of a month earlier and 5.8 percent has in recent months. The December drops in below that of a year earlier. The December both durable and nondurable materials exceeded declines in durable and nondurable manufac- 3.5 percent. The curtailment of production of turing output were 2.5 and 2.1 percent respecenergy materials was 0.5 percent. tively. The output of utilities declined 0.5 percent In industry groupings, manufacturing output in in December, and mining remained about un- December is estimated to have been 2.3 percent changed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 Statement to Congress Statement by Frederick H. Schultz, Vice Chair- est rates by pouring reserves into the banking man, Board of Governors of the Federal Reserve system and promoting a sharp surge in money System, before the Domestic Monetary Policy growth, short-term interest rates might decline Subcommittee of the Committee on Banking, further, but this decline would be only tempo- Finance and Urban Affairs, U.S. House of Rep- rary. The excessive monetary stimulus would resentatives, December 11, 1981. intensify price pressures in the economy. Inflationary expectations would worsen and long- It is a pleasure for me to be here to testify on term interest rates, which are of major impor- Joint Resolution 365. The issues involved are of tance for investment activity and homebuilding, vital interest and concern to the Board of Gover- would undoubtedly rise. Thus, the end result of nors, and my colleagues and I appreciate the an overly expansionary monetary policy would opportunity to convey our views. be higher, not lower, interest rates. Let me emphasize at the outset that the Feder- I would like to turn now to the specific provial Reserve Board agrees fully with the objective sions of the Joint Resolution. The first of these of achieving a lasting reduction in interest rates. provisions calls for reconsideration of current Lower interest rates would serve to improve economic policies "so as to bring interest rates conditions in credit-dependent sectors of the down rapidly enough to effect an early, complete economy such as housing, agriculture, and small recovery from the recession and to prevent a business and would relieve earnings pressures on resurgence of high interest rates in future years." numerous financial institutions, particularly Our view is that what we take to be the basic thrift institutions. Interest rates have declined purpose of this provision—a sustainable ecosharply over the past two months, as private nomic recovery without the excessively high credit demands have weakened along with a interest rates we all want to avoid—can be reduction in economic activity. But they remain achieved only if inflation is brought under conhigh by historical standards, fundamentally be- trol. That will require a steady monetary policy, cause of the persistence of inflationary expecta- but also and importantly disciplined fiscal politions along with large federal financing require- cies and moderation of wage and price behavior ments. I would hope that recent improvements in on the part of business and labor. price performance will begin to erode inflation- The Joint Resolution also calls for "an aggresary expectations, but so long as borrowers be- sive campaign designed to encourage banks to lieve that they will be able, through inflation, to cease providing loans or lines of credit for unpropay off loans with shrunken dollars, they will ductive takeovers and speculative purposes so as have a strong incentive to borrow. And so long to increase the supply of credit for productive as lenders see inflation in their future, they will purposes." We assume that this means use of require an "inflation premium" that compen- "moral suasion" rather than authority that might sates for the erosion of purchasing power. be involved through presidential activation of the Monetary policy is designed to achieve a grad- Credit Control Act of 1969. ual reduction in monetary growth rates that will The Board of Governors is fully sympathetic curb inflation over time. Reduced monetary ex- with the objective of encouraging the most propansion is essential if the fight against inflation is ductive use of credit and understands the conto be successful. As inflation and inflationary cerns that prompted this provision of the Joint expectations subside, conditions for sustainable Resolution. Nonetheless, we have serious resereconomic recovery should be established. If the vations about the provision. It raises fundamen- Federal Reserve were to attempt to reduce inter- tal issues regarding the definition of "unproduc- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress 31 tive" and "speculative" credit. For example, we the difficulty appears to lie elsewhere, including should be wary of categorizing given uses of excessive price increases in the past and failures credit—such as the financing of corporate take- to remain fully competitive. Nonetheless, high overs—as necessarily undesirable. A given take- interest rates have certainly exacerbated probover may be "productive" in the sense that it lems and have had an uneven impact on different may strengthen management, generate resources sectors of the economy. for increased investment in improved facilities, Access of selected sectors to credit on the produce economies of integration or scale, and least expensive terms possible cannot be especially in the case of smaller enterprises, achieved by credit-control-type approaches in provide for orderly transfer of ownership from today's highly competitive national and internaone generation to another. tional financial markets. Inequities, administra- On a more technical level I would point out tive nightmares, and distortions in credit flows that the several highly publicized merger deals would be the principal result. Allocation of credit this year have in reality had quite limited impacts on the least expensive terms possible is most on credit markets. The credit flows involved in effectively performed by a freely functioning and actually consummated transactions have been competitive market. Last year's experience with considerably smaller than suggested by the ag- credit controls, although they were imposed ungregation of credit lines that were arranged, der exceptional circumstances and were in effect including those by unsuccessful bidders. More- only for a brief period, emphasizes that they lose over, mergers generally involve only a transfer of their effectiveness and become increasingly ineqownership of existing assets and do not tend to uitable as the financial system devises ways to absorb the real savings in the economy. Stock- circumvent them. holders who sell out obtain funds that are avail- Pressures in credit-sensitive sectors can be able for reinvestment or for loan repayments, relieved efficiently and effectively only by thereby recycling these funds into credit mar- achieving and sustaining a lower level of interest kets. rates generally. This depends on bringing infla- I do not want to suggest that we should be tion under control. This process would be accelcomplacent about takeover loans. They may in erated, and sectors of the credit market relieved, some cases be a cause for concern and they if federal fiscal deficits were held down. In should be given close scrutiny. Moreover, they current inflationary circumstances heavy borcan have a somewhat inhibiting effect on short- rowings by the federal government tend to hold run flows of credit. In committing themselves to up interest rates and absorb savings that would a large volume of takeover loans, banks may otherwise be channeled to private borrowers. restrict for a time their lending to other potential The Joint Resolution also asks for studies "on borrowers, but any such effects should normally innovative techniques for managing the money be quite small and of short duration. supply and credit resources in times of tight Another provision of the Joint Resolution credit so as to meet urgent national needs." As urges "efforts to ensure that thrift institutions, many committee members know, the Federal the housing industry, small business, farmers, Open Market Committee adopted new operating consumers, and homebuyers have access to the procedures about two years ago that were deleast expensive possible credit." A few months signed to improve the System's control over the ago our staff completed a study for the Senate growth of the monetary aggregates. Those oper- Banking Committee, which concluded, not sur- ating procedures, and certain alternatives, were prisingly, that adverse credit conditions had reviewed by our staff in a comprehensive study played a role in curtailing activity in housing, that was completed earlier this year. Copies of automobiles, and agriculture, and apparently of the two-volume staff study were supplied to many small businesses as well. Actually, as the congressional committees.1 Besides this study, study also makes clear, we have to be cautious about blaming high interest rates for all the problems that some sectors of the economy are 1. Copies of this study are available on request from Publications Services, Board of Governors of the Federal experiencing. In many instances a major part of Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 Federal Reserve Bulletin • January 1982 we of course have our procedures, as they in- that review, but I can assure you that it will be volve all the instruments of policy, under con- thorough. tinuing review. Against this background, and As a final provision, the Joint Resolution given current economic developments, I would states that "the President shall select individuals question whether a major new study of the type for nomination to vacancies on the Board of contemplated in the resolution is needed. Governors ... so that this Nation's agricultural The Joint Resolution calls on the Federal Re- and commercial interests, including housing and serve to "reconsider -its tentative decision to small businesses, will no longer be underreprereduce the targets for monetary growth for sented." The selection of new Board members 1982." The contemplated reduction applies to is, of course, the prerogative of the President only one of the targeted measures of money, subject to confirmation by the U.S. Senate. In namely, narrowly defined money or Ml-B; no my view, it would be helpful at this time for a changes from this year's ranges were proposed new Board member to have a broad business or for the broader measures of money, including M2 financial background and to possess administraand M3. For a number of reasons, including the tive skills. I can see positive benefits in diversity explosive growth in money market mutual funds of backgrounds and regional representation on that may substitute in part for Ml-B type ac- the Board, provided a member does not undercounts, growth of Ml-B this year has fallen short take to represent the narrow interests of a particof our target range, while expansion in the broad- ular group, industry, or region. er monetary aggregates has been close to or In conclusion, I want to reiterate that my above the upper limits of their respective target colleagues and I on the Board of Governors are ranges. sympathetic with the basic objectives of the Joint In keeping with the Joint Resolution and its Resolution to lower interest rates and achieve a own past practice, the Federal Open Market balanced distribution of the nation's credit re- Committee has planned a full review of the sources. However, we would question the need tentative 1982 ranges at a meeting scheduled for for the resolution at this time. It runs the risk of early February, and a final decision regarding being interpreted as calling for monetary policy those ranges will be made at that time. By early to back off from its anti-inflationary stance and of February the Committee will have had an oppor- regenerating what I hope are diminishing inflatunity to analyze the administration's new bud- tionary expectations. I believe it is critically get proposals and will, of course, be in a position important that the economic recovery following to evaluate the latest economic and financial the present downturn be on a sustainable basis developments. I cannot predict the outcome of with inflation continuing to unwind. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

33 Announcements CAPITAL ADEQUACY GUIDELINES guidelines to provide a framework for assessing the capital of well-managed national banks, state member banks, and bank holding companies.1 The guidelines The Comptroller of the Currency and the Federal will be used in the examination and supervisory proc- Reserve Board have issued to the financial instiess and will be reviewed from time to time for possible tutions they supervise guidelines to be used in adjustment commensurate with changes in the econoassessing the adequacy of their capital. my, financial markets, and banking practices. The capital adequacy guidelines will be used Objectives of the capital adequacy guidelines proby the two agencies in their examination and gram are to address the long-term decline in capital ratios, particularly those of the multinational group; supervision of national banks, state-chartered introduce greater uniformity, objectivity, and consistbanks that are members of the Federal Reserve ency into the supervisory approach for assessing capi- System, and bank holding companies. tal adequacy; provide direction for capital and strate- The agencies developed the guidelines in order gic planning to banks and bank holding companies and to achieve greater consistency in their superviso- for the appraisal of this planning by the agencies; and permit some reduction of existing disparities in capital ry activities. The guidelines should also be helpratios between banking organizations of different size. ful to banking organizations in their financial Two principal ratio measurements of capital will be planning. The regulators stressed that the guide- used: (1) primary capital to total assets; and (2) total lines will be used in a manner that allows for capital to total assets. Primary capital consists of consideration of differences in the situations of common stock, perpetual preferred stock, capital surplus, undivided profits, reserves for contingencies and individual financial institutions. other capital reserves, mandatory convertible instru- One of the objectives of the agencies was to ments, and allowance for possible loan losses. Total address the sizable existing disparity in capital capital includes the primary capital components plus ratios among banking organizations of different limited-life preferred stock and qualifying subordinated notes and debentures. size. To this end, the agencies considered both The capital guidelines generally will be applied on a qualitative characteristics and practical economconsolidated basis. However, for those bank holding ic and market constraints that often account for companies with consolidated assets of less than $150 differences in capital ratios. The program adopt- million, the capital guidelines will apply to the bank ed will permit somewhat lower capital ratios for only if the company does not engage directly or smaller banks than most of these institutions now indirectly in any nonbanking activity involving significant leverage and if no significant debt of the parent maintain. At the same time, the agencies indicatcompany is held by the general public. ed that their policies with respect to the multina- Some bank holding companies are engaged in signiftional banking organizations—at present, 17 in- icant nonbanking activities that require capital ratios stitutions with assets in excess of $15 billion— higher than those for the bank alone. In these cases, would be amended to insure that appropriate appropriate adjustments will be made in the application of the consolidated capital guidelines. steps are taken to improve over time the capital Institutions affected by the guidelines are categopositions of banking organizations in this group. rized as either multinational organizations (as desig- The following guidelines will be reviewed from nated by their respective supervisory agency); regiontime to time for possible adjustment commensu- al organizations (all other institutions with assets in rate with changes in the economy, financial excess of $1 billion);2 or community organizations (less than $1 billion in total assets). markets, and banking practices. As conditions Capital guidelines for the relatively small number of permit, differences in the capital ratios by size of institution will be considered further. 1. Institutions that are under special supervision and those that have been in operation for less than two years are not The Federal Reserve and the Office of the Comptrol- affected by the guidelines. ler of the Currency have developed capital adequacy 2. May include some institutions located in money centers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 Federal Reserve Bulletin • January 1982 multinational organizations will continue to be formu- REGULATION D: AMENDMENT lated and monitored on an individual basis, taking into account their present and prospective financial condi- The Federal Reserve Board has announced adtion. The supervisory agencies are increasingly conjustment of the amount of net transaction accerned about the secular declines in the capital ratios of the nation's largest banking organizations, particu- counts to which the lowest—3 percent—reserve larly in view of increased risks both domestically and requirement will apply in 1982. internationally. In general, supervisory policies of the The change increased the amount of net trans- Federal Reserve and the Office of the Comptroller of action accounts to which the 3 percent requirethe Currency, designed to arrest the secular decline in ment applies from $25 million to $26 million in the capital ratios of this group of institutions, will be modified to insure that appropriate steps are taken to any one depository institution. improve over time the capital positions of this group. The Board made the change in accordance A minimum level of primary capital to total assets is with provisions of the Monetary Control Act of established at 5 percent for regional organizations and 1980. The act requires that the Board amend its 6 percent for community organizations. Generally, Regulation D (Reserve Requirements of Deposiregional and community banking organizations are expected to operate above the minimum primary capi- tory Institutions) annually to increase the tal levels. amount of transaction accounts against which The agencies also have established the following the 3 percent reserve requirement will apply in capital guidelines for regional and community organi- the next calendar year to 80 percent of the zations for the total capital to total assets ratio (in percentage increase in transaction accounts held percent): by all depository institutions on the previous June 30. Zone Regional Community The growth in total net transaction accounts of 1 Above 6.5 Above 7.0 2 5.5 to 6.5 6.0 to 7.0 all depository institutions from June 30, 1980, to 3 Below 5.5 Below 6.0 June 30, 1981, was 5.25 percent. The statutory rule thus requires an increase of 4.2 percent, to $26 million. Generally, the nature and intensity of supervisory action will be determined by the zone in which an institution falls. For banking institutions operating in zone 1, the CONSUMER ADVISORY COUNCIL: agencies will presume adequate capital if the primary NEW MEMBERS capital ratio is acceptable to the regulator and is above the minimum level; and intensify analysis and action when unwarranted declines in capital ratios occur. The Federal Reserve Board has named nine new For banking institutions operating in zone 2, agen- members to its Consumer Advisory Council to cies will presume that the institution may be undercap- replace members whose terms have expired and italized particularly if the primary and total capital has designated a new chairman and vice chairratios are at or near the minimum guidelines; engage in man. extensive contact and discussion with the management and require the submission of comprehensive capital Charlotte H. Scott, Professor of Business Adplans acceptable to the regulator; and closely monitor ministration and Commerce and a Senior Fellow the capital position over time. at the Tayloe Murphy Institute of the Colgate The agencies' approach to institutions operating in Darden Graduate School of Business Adminiszone 3 will include a very strong presumption that the bank is undercapitalized; frequent contact with man- tration at the University of Virginia, Charlottesagement and a requirement that the bank submit a ville, Virginia, was designated Chairman. She comprehensive capital plan, including a capital aug- succeeds Ralph J. Rohner, a law professor at the mentation program that is acceptable to the regulator; Catholic University Law School, Washington, and continuous analysis, monitoring, and supervision. D.C. The guidelines will be applied in a flexible manner with exceptions as appropriate. The assessment of Margaret Reilly-Petrone, Professor of Ecocapital adequacy will continue to be made on a case- nomics at Montclair State College, Upper Montby-case basis considering various qualitative factors clair, New Jersey, succeeds Professor Scott as that affect an institution's overall financial condition. Vice Chairman. Thus, the agencies retain the flexibility to recognize The council advises the Board in the field of the unique characteristics of sound and well-managed banks. consumer financial protection laws and other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 35 consumer-related matters. Its members come throughout the country. In 1978-79, he served as from all parts of the country and include a broad Deputy Commissioner of Banks, Consumer Credit, for the Commonwealth of Massachusetts. representation of consumer and financial industry interests. The council generally meets four Janet J. Rathe, Portland, Oregon, member of the times a year in sessions open to the public. Executive Committee of the Oregon Consumer The nine new members named for three-year League, after having served 14 years as executive terms are as follows: secretary and one year as president. She helped found the League in 1966. Mrs. Rathe served as a member of Gerald R. Christensen, Salt Lake City, Utah, Presi- President Nixon's Consumer Advisory Council and dent and Chairman of the Board of First Federal has been active in the areas of legislation, consumer Savings Association, in Salt Lake City. He has been credit, and privacy concerns. A former newspaper with the association since 1953 and has served on the journalist, she is a frequent speaker on radio and Mayor's Council on Housing. He is a former director television talk shows. of the Federal Home Loan Bank of Seattle. Clinton L. Warne, Cleveland, Ohio, President of the Meredith Fernstrom, New York, New York, Vice Consumers League of Ohio and a Professor of Eco- President for Consumer Affairs of American Express nomics at Cleveland State University. He was former- Company. She is responsible for monitoring consumer ly President of the American Council on Consumer opinion, advising management on policy, preparing Interests and is a member of the Consumer Federation consumer information for the public, and serving as of America. He has been active in local, state, and liaison to consumer leaders. She serves on the Boards national consumer credit groups for many years. of Directors of the National Consumers League and the Society of Consumer Affairs Professionals and was Frederick T. Weimer, Chicago, Illinois, General Director of the Office of Consumer Affairs for the U.S. Assistant to the Vice President, Credit, of Sears, Department of Commerce, and Consumer Education Roebuck and Co. He supervises all credit activities, Director for the District of Columbia Office of Con- with special emphasis on credit legislation, litigation, sumer Affairs. and implementation of all credit laws and regulations. He has been with Sears more than 30 years and is a Allen J. Fishbein, Washington, D.C., Director of the member and director of the Merchants Research Neighborhood Revitalization Project of the Center for Council. Community Change, Washington, D.C. He directs a national advocacy project that provides legal representation and technical assistance to community groups on uses of the Community Reinvestment Act and other INTERNATIONAL BANKING FACILITIES: fair lending laws. He is a former staff attorney with the INTERPRETATION D.C. Neighborhood Reinvestment Commission. E. C. A. Forsberg, Sr., Atlanta, Georgia, President The Federal Reserve Board on December 17, and Chief Executive Officer of the Gulf Finance Cor- 1981, issued an interpretation of its rules for poration in Atlanta. He has worked for more than 40 international banking facilities with respect to years in the consumer finance industry and is the purchases and sales of financial assets in the immediate past president of the National Consumer secondary market. IBFs are banking facilities Finance Association. He is on the executive committee of the consumer credit management program at that may be established—beginning December Columbia University's Graduate School of Business. 3—in the United States by U.S. depository institutions, by Edge and Agreement corporations, Harry N. Jackson, Minneapolis, Minnesota, Vice and by branches and agencies in the United President, Credit, of the Dayton Hudson Corporation, States of foreign banks. When operated under headquartered in Minneapolis. He has served as Chairman of the Credit Management Divison of the the Board's rules, their deposits are free of National Retail Merchants Association and continues reserve requirements and interest rate ceilings. to be active in this group. Formerly, he was Chairman They may accept deposits from and extend credit of the Better Business Bureau of Minnesota. only to foreign residents, their establishing entity, and other IBFs. Willard P. Ogburn, Boston, Massachusetts, Deputy Director of the National Consumer Law Center in The question has arisen with whom IBFs may Boston. He is responsible for all phases of the Center's deal in buying and selling, in the secondary work, particularly issues of consumer protection and market, such assets as loans, securities, Eurocredit regulation. The center is a nonprofit corporation dollar certificates of deposit, and bankers accepthat advocates the interests of low-income consumers and assists legal services attorneys and others tances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 Federal Reserve Bulletin • January 1982 The Board decided that because purchases and to obtain such a statement from the obligor, or (4) in sales of assets do not result in extensions of the case of bankers acceptances, to review the undercredit, IBFs may buy assets eligible to be held by lying documentation to determine that the proceeds are being used only to finance the parties' operations IBFs from, or sell them to, both domestic and outside the United States. foreign parties, under certain conditions. Under the Board's regulations, IBFs are not permit- The Board's interpretation and conditions are ted to issue negotiable Euro-CDs, bankers accepset forth as follows: tances, or similar instruments. Accordingly, consistent with the Board's intent in this area, IBFs may sell such instruments issued by third parties that qualify as Questions have been raised concerning the extent to IBF-eligible assets provided that the IBF, its establishwhich international banking facilities may purchase (or ing institution, and any affiliate of the institution sell) IBF-eligible assets such as loans (including loan establishing the IBF do not endorse, accept, or otherparticipations), securities, CDs, and bankers accep- wise guarantee the instrument. tances from (or to) third parties. Under the Board's regulations, as specified in § 204.8 of Regulation D, IBFs are limited, with respect to making loans and accepting deposits, to dealing only with certain cus- FEE SCHEDULE FOR COIN WRAPPING tomers, such as other IBFs and foreign offices of other SERVICES organizations, and with the entity establishing the IBF. In addition, an IBF may extend credit to a The Federal Reserve Board has approved a fee nonbank customer only to finance the borrower's non- U.S. operations and may accept deposits from a schedule for coin wrapping services, effective nonbank customer that are used only to support the January 28, 1982. depositor's non-U.S. business. The schedule applies to two Federal Reserve Consistent with the Board's intent, IBFs may pur- Banks, Boston and Cleveland, planning to offer chase IBF-eligible assets1 from, or sell such assets to, coin wrapping services in 1982. any domestic or foreign customer provided that the The Federal Reserve Bank of Cleveland will transactions are at arm's length without recourse. Therefore, an IBF may not purchase such assets from, charge 3.2 cents a roll and the Federal Reserve or sell such assets to, affiliates of the institution Bank of Boston will charge 2.8 cents a roll for establishing the IBF. (However, this restriction does coin wrapping. not affect the IBF's ability to purchase (or sell) assets In each case a private sector adjustment—for directly from (or to) the institution establishing the such items as taxes that would have been paid IBF; such purchases from the institution establishing the IBF would continue to be subject to Eurocurrency and the return on capital that would have been reserve requirements except during the initial four- provided in the private sector—has been includweek transition period.) Since repurchase agreements ed when applicable. are regarded as loans, transactions involving repur- The fee schedules were established, including chase agreements are permitted only with customers the private sector adjustment, in accordance who are otherwise eligible to deal with IBFs, as specified in Regulation D. with the provisions of the Monetary Control Act In the case of purchases of assets, in order to of 1980. determine that the Board's use-of-proceeds requirement has been met, it is necessary for the IBF (1) to ascertain that the applicable IBF notices and acknowledgements have been provided, or (2) in the case of PROPOSED ACTIONS loans or securities, to review the documentation underlying the loan or security, or accompanying the The Federal Reserve Board has requested public security (for example the prospectus or offering statecomment, in connection with an application, on ment), to determine that the proceeds are being used the question of whether arranging equity financonly to finance the obligor's operations outside the United States, or (3) in the case of loans, to obtain a ing with institutional lenders for income-producstatement from either the seller or the borrower that ing properties should be considered closely relatthe proceeds are being used only to finance operations ed to banking and would have public benefits if outside the United States, or in the case of securities, engaged in by a subsidiary of a bank holding company. The Board said it may consider 1. In order for an asset to be eligible to be held by an IBF, amending its Regulation Y (Bank Holding Comthe obligor or issuer of the instrument, or in the case of panies and Change in Bank Control) to add this bankers' acceptances, the customer and any endorser or acceptor, must be an IBF-eligible customer. item to the list of activities permissible for bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 37 holding companies. It requested comment by FEDERAL RESERVE REGULATORY SERVICE February 1, 1982. AND HANDBOOKS: REVISED RATES The Federal Reserve Board has also proposed revisions of its charges to depository institutions In view of substantial increases in the cost of for wire transfer and net settlement services. It publishing and distributing the Federal Reserve asked for comment by February 20, 1982. Regulatory Service and Handbooks, the subscription rates have been revised effective January 1, 1982. The new annual rates are as follows. REGULATIONS M AND Z. DEFERRAL OF MANDATORY EFFECTIVE DATE Domestic rates Consumer and Community Affairs Handbook $ 60.00 The mandatory effective date of the Federal Monetary Policy and Reserve Requirements Reserve Board's Regulation M (Consumer Leas- Handbook $ 60.00 ing) and Regulation Z (Truth in Lending), as Securities Credit Transactions Handbook... $ 60.00 these regulations were revised to implement the Federal Reserve Regulatory Service (two volumes, Truth in Lending Simplification and Reform Act, containing all three Handbooks plus substantial additional material) $175.00 has been postponed until October 1, 1982. This action will conform the Board's regula- Foreign rates (for subscribers outside the United tions with an amendment to the Simplification States, including additional air mail costs) Act, signed into law on December 26, 1981, Federal Reserve Regulatory Service $225.00 delaying the mandatory effective date of the Each Handbook $ 75.00 Simplification Act from April 1, 1982, to October 1, 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

39 Record of Policy Actions of the Federal Open Market Committee Meeting Held on remained at a reduced level. The November 17, 1981 unemployment rate rose from 7.5 to 8.0 percent. 1. Domestic Policy Directive Private housing starts edged down The information reviewed at this in September from an already demeeting suggested that real GNP pressed level. At an annual rate of was declining appreciably in the cur- less than 1 million units, starts in the rent quarter, following a slight de- third quarter were one-fourth below cline in the third quarter indicated by the rate in the first half. Sales of new preliminary estimates of the Com- houses in September were at their merce Department. Average prices, lowest level in the 18-year history of as measured by the fixed-weight the series, and sales of existing price index for gross domestic busi- homes continued to decline. ness product, appeared to be rising The producer price index for finsomewhat less rapidly than on the ished goods rose on the average in average in the first three quarters of September and October at about the the year. reduced rate of the preceding four The nominal value of retail sales in months. The consumer price index October was down 1 Vi percent from rose at a much faster pace in Sep- September and about 1 percent from tember and during the third quarter the third-quarter average; although as a whole than in the first half of the the nominal value had risen about year. Much of the acceleration re- 2lA percent from the second to the flected the behavior of the homethird quarter, sales in real terms had ownership component and food changed little. In October sales of prices. Over the first 10 months of automotive products were particu- 1981, the rise in the index of average larly weak; unit sales of new auto- hourly earnings was less rapid than it mobiles fell nearly one-fifth from was during 1980. September, even though some re- In foreign exchange markets the bates and special financing arrange- trade-weighted value of the dollar ments remained in effect. against major foreign currencies had The index of industrial production fluctuated over a wide range since fell 1.5 percent in October, following early October. On balance, it dea decline of 1.2 percent in Septem- clined only a little over the interber. Reductions in both months were meeting interval although U.S. widespread among market group- short-term interest rates fell substanings, with declines particularly large tially more than foreign short-term in durable materials, construction rates. The U.S. trade deficit in Sepsupplies, and consumer durable tember was substantially lower than goods. the extraordinarily large one in Au- Total nonfarm payroll employ- gust. For the third quarter, the defiment declined sharply in October. cit was little changed from that in the Job losses in manufacturing were second quarter. A decline in the valsizable, overwhelming moderate ue of exports about offset a reducgains in trade and service industries, tion in imports, which was accountand the average factory workweek ed for largely by oil. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 Federal Reserve Bulletin • January 1982 At its meeting on October 5-6, the slowed to an annual rate of about 8V2 Committee had decided that open percent in October, following expanmarket operations in the period until sion at annual rates of 10 and IOV2 this meeting should be directed to- percent in August and September ward behavior of reserve aggregates respectively. The slowing reflected consistent with growth of M-1B from in part a moderation in the growth of September to December at an annual business loans from the brisk pace in rate of 7 percent (after allowance for the third quarter. Bank holdings of shifts into NOW accounts) and with Treasury securities were unchanged growth of M-2 at an annual rate of in October, while acquisitions of around 10 percent or slightly higher. other securities increased. Net is- If it appeared to the Manager for sues of commercial paper by nonfi- Domestic Operations that pursuit of nancial corporations slowed subthe monetary objectives and related stantially, following expansion at reserve paths during the period be- exceptionally rapid rates in August fore the next meeting was likely to and September. be associated with a federal funds Short-term market interest rates rate persistently outside a range of declined about 2Vi to 3V2 percentage 12 to 17 percent, the Chairman might points over the intermeeting period. call for a Committee consultation. Yields on longer-term securities gen- By late October, incoming data erally reached record levels around began to indicate shortfalls in growth the end of September but had deof the monetary aggregates, espe- clined in recent weeks, apparently in cially M-1B, from the rates that the response to incoming evidence of Committee had specified for the weakness in economic activity and three-month period from September reduced pressures in short-term to December. Subsequently, money markets. During the intermeeting pemarket conditions eased: the federal riod, the prime rate charged on funds rate in the days just before this short-term business loans was remeeting was about 13lA percent, duced by 2 percentage points to 17 compared with an average of about percent by most commercial banks, 15 percent in the four weeks ending and to I6V2 percent by a few banks. October 28. In the statement week On October 30, against the backincluding the day of the meeting, ground of the declines in short-term borrowings from Federal Reserve rates, the Board of Governors an- Banks for purposes of adjusting re- nounced a reduction in Federal Reserve positions were running $300 serve basic discount rates from 14 to million to $400 million below the 13 percent. The surcharge on freaverage of the preceding weeks of quent borrowings of large depository the intermeeting period. institutions had been reduced from 3 M-1B (adjusted for shifts into to 2 percentage points on October 9, NOW accounts) expanded at an an- and on November 16 it was removed nual rate of about 33A percent in altogether. In home mortgage mar- October, following a contraction of 4 kets, average interest rates on new percent in September, and M-2 grew commitments for fixed-rate convenat an annual rate of about 9lA per- tional loans at savings and loan assocent. In October the level of shift- ciations had eased a bit in recent adjusted M-1B remained well below weeks after reaching a record level the lower end of the Committee's in early October. range for growth over the year from In the Committee's discussion of the fourth quarter of 1980 to the the economic situation and outlook, fourth quarter of 1981, while the the consensus was that the downlevel of M-2 was at the upper end of ward drift in economic activity apits range for the year. parent when the Committee met in Expansion in total credit outstand- early October had clearly developed ing at U.S. commercial banks into a recession. Weakness in output Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 41 and employment was intensifying in upper end of the ranges. In light of those industries and regions that had its desire to maintain moderate already been seriously affected, and growth in money over the balance of it was spreading. As usual, consider- the year, the Committee expected able uncertainty existed about the that growth in M-1B for the year likely severity and duration of the would be near the lower end of its recession. It was generally thought, range. At the same time, growth in however, that the scheduled reduc- the broader monetary aggregates tions in federal income taxes, the might be at the higher end of their projected increases in defense ranges. For the period from the spending along with other elements fourth quarter of 1981 to the fourth in the federal fiscal outlook, and the quarter of 1982, the Committee tendecline in interest rates most likely tatively agreed that growth of M-l, would generate an upturn in eco- M-2, and M-3 within ranges of 2V2 to nomic activity by the middle of 1982, 5¥2 percent, 6 to 9 percent, and 6V2 although some difference of opinion to 9Vi percent respectively would be existed about the timing of recovery. appropriate. At the same time, concern about In reviewing the objectives that it inflationary tendencies remained had established in early October for strong. Some encouraging signs of growth of M-1B and M-2 over the an easing in inflationary expecta- final three months of the year, the tions were noted, but it was also Committee continued to face unceremphasized that such expectations tainties with respect to the forces tended to change slowly; they would affecting the behavior of the monebe sensitive to judgments about fed- tary aggregates, including the appareral budgetary developments, to the ent decline in the public's desire to nature of the newly negotiated col- hold transaction balances in the lective bargaining agreements, and forms included in M-lB and the exto perceptions of the course of mon- pansive effect on M-2 of growth in etary policy. Inflationary expecta- money market mutual funds and of tions, as well as the budgetary out- shifts into deposit forms that either look, would have a major effect on bear a market interest rate or are long-term interest rates and thus on subject to variable ceilings closely business financial positions and the related to market rates. Growth of sustainability of the projected recov- M-1B in October had fallen below ery in activity. the 7 percent annual rate that the At its meeting on July 6-7, 1981, Committee had adopted for growth the Committee reaffirmed the mone- over the final three months of the tary growth ranges for the period year. M-2, meanwhile, had grown at from the fourth quarter of 1980 to the an annual rate only slightly less than fourth quarter of 1981 that it had set the 10 percent that had been speciat its meeting in early February. fied for the final three months and These ranges were 3 to SVz percent remained close to the upper end of for M-1A and 3V2 to 6 percent for its range for the year. M-1B, abstracting from the impact Committee members continued to of NOW accounts on a nationwide agree on the desirability of seeking basis; 6 to 9 percent for M-2; and 6V2 somewhat more rapid growth in to 9Vi percent for M-3. The associat- M-1B, while taking account of the ed range for bank credit was 6 to 9 relative strength of the broader monpercent. The Committee recognized etary aggregates. At the same time, that a shortfall in M-1B growth in the however, questions were raised first half of the year partly reflected about how aggressively more rapid a shift in public preferences toward growth in M-lB should be pursued in other highly liquid assets and that the short period before the end of the growth in the broader aggregates had year. The view was expressed that been running somewhat above the objectives for growth of M-lB over Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 Federal Reserve Bulletin • January 1982 that interval should take account of 7 percent (after allowance for the the desirability of a smooth transi- impact of flows into NOW accounts) tion to the targets for monetary and with growth of M-2 at an annual growth tentatively established for rate of around 11 percent. It was 1982 as well as the relatively rapid understood that somewhat more rapgrowth in the broader aggregates. id growth of M-1B, consistent with While recognizing the variability of the objective for growth over the demands for money over the short fourth quarter adopted at the previrun, many members thought that an ous meeting, would be accepted in aggressive effort to stimulate M-1B the event that transaction demands growth over November and Decem- for money proved to be stronger ber at a pace sufficiently rapid to than anticipated; it was also undercompensate for the shortfall in Octo- stood that moderate shortfalls from ber would interfere with achieve- the growth path would not be unacment of longer-term economic goals ceptable, particularly if broader agand would risk overly rapid expan- gregates continued to expand rapidsion of money and credit in later ly. The intermeeting range for the months, particularly if the effort federal funds rate that provided a were accompanied by a precipitous mechanism for initiating further condecline in short-term interest rates to sultation of the Committee was set at levels that might not be sustainable. 11 to 15 percent. Such a decline in short-term rates The following domestic policy dicould exacerbate inflationary expec- rective was issued to the Federal tations and abort a desirable down- Reserve Bank of New York: trend in bond yields and mortgage interest rates. The information reviewed at this meet- Committee members in general ing suggests that real GNP is declining appreciably in the current quarter and believed that additional weakness in that prices on the average are rising economic activity could well be ac- somewhat less rapidly than over the first companied by further declines in in- three quarters of the year. In October the terest rates, which would be con- nominal value of total retail sales dropped; industrial production fell more structive in supporting economic than in September; and nonfarm payroll activity. In that light, they wished to employment, especially in manufacset objectives for monetary growth turing, declined sharply. The unemployover the period ahead consistent ment rate rose from 7.5 percent to 8.0 with achieving further progress in percent. Housing starts edged down in September from an already depressed reducing inflationary expectations level. Over the first 10 months of 1981, and with minimizing the risk of de- the rise in the index of average hourly stabilizing swings in both monetary earnings was less rapid than during 1980. growth and interest rates. Their view The weighted average value of the dollar against major foreign currencies was reinforced by the concern that has declined only a little since early projection of large budgetary deficits October, although U.S. short-term interin the years ahead, combined with est rates have declined more than foreign inflationary sensitivities, could gen- rates. A reduced U.S. foreign trade defierate anticipations of a reversal of cit in September brought the deficit for the third quarter close to the secondfavorable interest rate trends as requarter rate. covery in activity got under way. M-1B (adjusted for estimated shifts After noting the moderate short- into NOW accounts) expanded in Octofall in growth of M-1B in October ber almost as much as it had declined in September, and growth of M-2 picked from the 7 percent annual rate that up. The level of adjusted M-1B remained had been adopted for growth from well below the lower end of the Commit- September to December, the Com- tee's range for growth over the year from mittee decided to seek behavior of the fourth quarter of 1980 to the fourth quarter of 1981; the level of M-2 was at reserve aggregates associated with the upper end of its range for the year. growth of M-1B from October to Short-term market interest rates have December at an annual rate of about declined substantially since the end of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 43 September, and bond yields have also for the impact of flows into NOW acdropped from the peaks generally counts) and with growth of M-2 at an reached about then. On October 30 the annual rate around 11 percent. The Board of Governors announced a reduc- Chairman may call for Committee contion in Federal Reserve basic discount sultation if it appears to the Manager for rates from 14 to 13 percent. The sur- Domestic Operations that pursuit of the charge on frequent borrowings of large monetary objectives and related reserve depository institutions had been reduced paths during the period before the next from 3 to 2 percentage points on October meeting is likely to be associated with a 9, and on November 16 the Board re- federal funds rate persistently outside a moved the remaining 2 percentage range of 11 to 15 percent. points. The Federal Open Market Committee Votes for this action: Messrs. seeks to foster monetary and financial Volcker, Solomon, Boehne, Boykin, conditions that will help to reduce infla- Corrigan, Gramley, Keehn, Partee, tion, promote a resumption of growth in Rice, Schultz, Mrs. Teeters, and Mr. output on a sustainable basis, and con- Wallich. Votes against this action: tribute to a sustainable pattern of inter- None. national transactions. At its meeting in early July, the Committee agreed that its objectives would be furthered by reaffirming the monetary growth ranges for 2. Authorization for Domestic the period from the fourth quarter of Open Market Operations 1980 to the fourth quarter of 1981 that it had set at the February meeting. These On December 4, 1981, the Commitranges included growth of 3Vi to 6 per- tee voted to increase from $3 billion cent for M-1B, abstracting from the imto $4 billion the limit on changes pact of flows into NOW accounts on a nationwide basis, and growth of 6 to 9 between Committee meetings in percent and 6V2 to W2 percent for M-2 System Account holdings of U.S. and M-3 respectively. The Committee government and federal agency serecognized that the shortfall in M-1B curities specified in paragraph 1(a) of growth in the first half of the year partly the authorization for domestic open reflected a shift in public preferences toward other highly liquid assets and that market operations, effective immedigrowth in the broader aggregates had ately, for the period ending with the been running at about or somewhat close of business on December 22, above the upper end of their ranges. In 1981. light of its desire to maintain moderate growth in money over the balance of the Votes for this action: Messrs. year, the Committee expected that Volcker, Solomon, Boehne, Boykin, growth in M-1B for the year would be Corrigan, Gramley, Keehn, Partee, near the lower end of its range. At the Rice, Schultz, and Mrs. Teeters. same time, growth in the broader aggre- Votes against this action: None. Abgates might be high in their ranges. The sent: Mr. Wallich. associated range for bank credit was 6 to 9 percent. The Committee also tentative- This action was taken on recomly agreed that for the period from the fourth quarter of 1981 to the fourth quar- mendation of the Manager for Doter of 1982 growth of M-l, M-2, and M-3 mestic Operations. The Manager within ranges of 2Vi to 5'/2 percent, 6 to 9 had advised that since the Novempercent, and 6V2 to 9Vi percent respecber meeting, substantial net purtively would be appropriate. These ranges will be reconsidered as warranted chases of securities had been underto take account of developing experience taken to provide reserves in with public preferences for NOW and association with a seasonal increase similar accounts as well as changing ecoin currency in circulation. The leenomic and financial conditions. way for further purchases had been The Committee, after noting a moderate shortfall in growth of M-lB in Octo- reduced to about $900 million, and ber from the target path set at the last additional purchases in excess of meeting, seeks behavior of reserve ag- that amount were likely to be regregates consistent with growth of M-1B quired before the next Committee from October to December at an annual rate of about 7 percent (after allowance meeting. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments AMENDMENTS TO REGULATION A (b) The rates for other extended credit provided to depository institutions under sustained liquidity pres- The Board of Governors of the Federal Reserve Sys- sures or where there are exceptional circumstances or tem has amended its Regulation A—Extensions of practices involving a particular institution under Credit by Federal Reserve Banks (12 CFR Part 201). § 201.3(b)(2) of Regulation A are: This action was taken to bring the discount rates into better alignment with short-term rates that have been Federal Rate Effective Reserve Bank prevailing recently in the market. Effective December 4, 1981, sections 201.51 and Boston 12 December 4, 198 201.52 were amended as set forth below: New York 12 December 4, 198 Philadelphia 12 December 4, 198 Cleveland 12 December 4, 198 Section 201.51—Short Term Adjustment Credit Richmond 12 December 4, 198 Atlanta 12 December 4, 198 for Depository Institutions Chicago 12 December 4, 198 St. Louis 12 December 4, 198 Minneapolis 12 December 4, 198 The rates for short term adjustment credit provided to Kansas City 12 December 4, 198 Dallas 12 December 4, 198 depository institutions under § 201.3(a) of Regulation San Francisco 12 December 4, 198 A are: 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 Federal Rate Effective per cent surcharge applies for borrowing thereafter. Reserve Bank (12 U.S.C. 248(i), Interprets or applies 12 U.S.C. Boston 12 December 4, 198 New York 12 December 4, 198 357) Philadelphia 12 December 4, 198 Cleveland 12 December 4, 198 Richmond 12 December 4, 198 Atlanta 12 December 4, 198 Chicago 12 December 4, 198 St. Louis 12 December 4, 198 AMENDMENTS TO REGULATION D Minneapolis 12 December 4, 198 Kansas City 12 December 4, 198 Dallas 12 December 4, 198 The Board of Governors of the Federal Reserve Sys- San Francisco 12 December 4, 198 tem has amended its Regulation D—Reserve Requirements of Depository Institutions (12 CFR Part 204) to adjust the dollar amount of transaction accounts sub- Section 201.52—Extended Credit to Depository ject to a reserve requirement ratio of 3 per cent for Institutions depository institutions, Edge and Agreement Corporations, and United States branches and agencies of (a) The rates for seasonal credit extended to deposiforeign banks, as required by the Monetary Control tory institutions under § 201.3(b)(1) of Regulation A Act of 1980. The first reserve maintenance period to are: which the amendment applies commences January 14, 1982. Federal Reserve Bank Rate Effective Effective December 31, 1981, section 204.9(a) is amended as set forth below: Boston 12 December 4, 198 New York 12 December 4, 198 Philadelphia 12 December 4, 198 Section 204.9—Supplement: Reserve Cleveland 12 December 4, 198 Richmond 12 December 4, 198 Requirement Ratios Atlanta 12 December 4, 198 Chicago 12 December 4, 198 St. Louis 12 December 4, 198 (a) Reserve percentages. The following reserve ratios Minneapolis 12 December 4, 198 are prescribed for all depository institutions, Edge and Kansas City 12 December 4, 198 Dallas 12 December 4, 198 Agreement Corporations and United States branches San Francisco 12 December 4, 198 and agencies of foreign banks: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 Federal Reserve Bulletin • January 1982 Category Reserve Requirement Maturity Maximum per cent Net Transaction Accounts 14 days or more but less than 90 days 5-1/4 $0-$26 million 3% of amount 90 days or more but less than 1 year 5-3/4 Over $26 million $780,000 plus 12% of 1 year or more but less than 2-1/2 years 6 amount over $26 million 2-1/2 years or more but less than 4 years 6-1/2 Nonpersonal Time Deposits 4 years or more but less than 6 years 7-1/4 By original maturity 6 years or more but less than 8 years 7-1/2 (or notice period): 8 years or more 7-3/4 less than four years 3% four years or more 0% Eurocurrency Liabilities 3% (e) Individual Retirement Account and Keogh (H.R. 10) Plan deposits of less than $100,000. (1) Except as provided in paragraphs (a), (e)(2), and AMENDMENTS TO REGULATION Q (g), a member bank may pay interest on any time deposit with a maturity of three years or more that The Board of Governors of the Federal Reserve Sys- consists of funds deposited to the credit of, or in tem has amended its Regulation Q—Interest on De- which the entire beneficial interest is held by, an posits (12 CFR Part 217). The amendments to Regula- individual pursuant to an Individual Retirement Action Q are technical in nature, and conform the count agreement or Keogh (H.R. 10) Plan estab- Board's rules to those of the Depository Institutions lished pursuant to 26 U.S.C. (I.R.C. 1954). §§ 219, Deregulation Committee. 401, 404, 408 and related provisions at a rate not in Effective December 16, 1981, sections 217.3(a) and excess of 8 per cent.2 217.7(b), (e), (f), and (g) are amended, and a new (2) A member bank may pay interest at any rate as paragraph, section 217.7(i) is added as set forth below: agreed to by the depositor on any time deposit with a maturity of one and one-half years or more, that consists of funds deposited to the credit of, or in Section 217.3—Interest on Time and Savings which the entire beneficial interest is held by, an Deposits individual pursuant to an Individual Retirement Account agreement or Keogh (H.R. 10) Plan established pursuant to 26 U.S.C. (I.R.C. 1954) §§ 219, (a) Maximum rate. Except as provided in this section, 401, 404, 408 and related provisions. An institution no member bank shall, directly or indirectly, by any may permit additional deposits to be made to such a device whatsoever, pay interest on any time or savings time deposit at any time prior to its maturity without deposit at a rate in excess of such applicable maximum extending the maturity of all or a portion of the rate as the Board of Governors of the Federal Reserve entire balance in the account. System shall prescribe from time to time in § 217.7. Except as provided in § 217.7(i), in ascertaining the rate of interest paid, the effects of compounding of (f) 26-week money market time deposits of less than interest may be disregarded. The maximum rate of $100,000. Except as provided in paragraphs (a), (b) interest that may be paid by a member bank on an and (d), a member bank may pay interest on any additional deposit to any existing time deposit shall not nonnegotiable time deposit of $10,000 or more, with a exceed the maximum rate that may be paid in accor- maturity of 26 weeks, at a rate not to exceed the ceiling dance with § 217.7 on the date the additional deposit is rates set forth below. The ceiling rate shall be based on made. the higher of either (1) the rate established and announced (auction average on a discount basis) for U.S. Section 217.7—Supplement: Maximum Rates of Treasury bills with maturities of 26 weeks at the Interest Payable by Member Banks on Time auction held immediately prior to the date of deposit and Savings Deposits ("Bill Rate"), or (2) the average of the four rates established and announced (auction average on a discount basis) for U.S. Treasury bills with maturities (b) Fixed-ceiling time deposits of less than $100,000. of 26 weeks at the four auctions held immediately prior Except as provided in paragraphs (a), (d), (e), (f), (g), to the date of deposit ("Four-Week Average Bill and (i), no member bank shall pay interest on any time Rate"). Rounding any rate to the next higher rate is deposit at a rate in excess of the applicable rate under the following schedule: 2 * * * Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 47 not permitted and interest may not be compounded division thereof, the District of Columbia, the Comduring the term of this deposit. monwealth of Puerto Rico, the Virgin Islands, American Samoa, Guam, or political subdivision Bill Rate or Four-Week thereof; or Interest Rate Ceiling Average Bill Rate (2) an individual pursuant to an Individual Retire- 7.50 per cent or below 7.75 per cent ment Account agreement or Keogh (H.R. 10) Plan Above 7.50 per cent One-quarter of one percentage point plus established pursuant to 26 U.S.C. (I.R.C. 1954) the higher of the Bill Rate or Four-Week Average Bill Rate §§ 219, 401, 404, 408 and related provisions at a rate not to exceed the ceiling rate payable on the same A member bank may offer this category of time deposit category of deposit by any Federally insured savings to all depositors. However, a member bank may pay and loan association or mutual savings bank.4 interest on any nonnegotiable time deposit of $10,000 or more with a maturity of 26 weeks which consists of funds deposited to the credit of, or in which the entire (i) Tax-exempt savings certificate. beneficial interest is held by: (1) A member bank may pay interest on a nonnego- (1) the United States, any state of the United tiable tax-exempt savings certificate ("ASC") pro- States, or any county, municipality or political sub- vided that the time deposit has an original maturity division thereof, the District of Columbia, the Com- of exactly one year, is available in denominations of monwealth of Puerto Rico, the Virgin Islands, $500 and any other denomination, at the discretion American Samoa, Guam, or political subdivision of the member bank, and has an annual investment thereof; or yield to maturity equal to 70 per cent of the average (2) an individual pursuant to an Individual Retire- investment yield for the most recent auction of 52ment Account agreement or Keogh (H.R. 10) Plan week U.S. Treasury bills prior to the calendar week established pursuant to 26 U.S.C. (I.R.C. 1954) in which the ASC is issued.5 §§ 219, 401, 404, 408 and related provisions at a rate not to exceed the ceiling rate payable on the same (2) A member bank must provide each depositor the category of deposit by any Federally insured savings following notice, in a form that the depositor may and loan association or mutual savings bank.3 retain at the time of opening a deposit under this paragraph: (g) Time deposits of less than $100,000 with maturities of 2-1/2 years to less than 4 years. Except as provided The Economic Recovery Tax Act of 1981 auin paragraphs (a), (b), (d), and (e), a member bank may thorizes a lifetime exclusion from gross income pay interest on any nonnegotiable time deposit with an for federal income tax purposes of up to $1,000 original maturity of 2-1/2 years to less than four years ($2,000 in the case of a joint return) for interest at a rate not to exceed the higher of one-quarter of one earned on tax-exempt savings certificates. per cent below the average 2-1/2 year yield for U.S. Regardless of how much interest is earned on this Treasury securities as determined and announced by the U.S. Department of the Treasury immediately prior to the date of deposit, or 9.25 per cent. Such 5. When institutions credit interest more frequently than annually, announcement is made by the U.S. Department of the the computation of interest must be adjusted to reflect the effects of compounding so that the annual investment yield to the depositor Treasury every two weeks. The average 2-1/2 year remains at the rate stipulated by law. Specifically, the formula used to yield will be rounded by the U.S. Department of the derive the nominal interest rate at which interest can be credited is as Treasury to the nearest 5 basis points. The rate paid on follows: any such deposit cannot exceed the ceiling rate in (d/365) effect on the date of deposit. A member bank may offer I = [(1 = c/100) ] - 1 this category of time deposit to all depositors. Howev- r = 100 x (365/d) x I where: c = the annual investment yield required to be paid on the er, a member bank may pay interest on any nonnego- ASCs (in percent per annum) tiable time deposit with a maturity of 2-1/2 years to less D = the average number of days in a compounding period than 4 years which consists of funds deposited to the (365-day year) I = the amount of interest earned during a (365-day year) credit of, or in which the entire beneficial interest is compounding period per dollar in the account at the held by: beginning of the period r = the corresponding nominal rate of interest (365-day ba- (1) the United States, any state of the United sis, in percent per annum) States, or any county, municipality or political sub- For institutions using continuous compounding, the nominal interest rate would be defined as: r = 100 [In (1 + (c/100))], where "In" signifies the natural logarithm of the expression that follows it. 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48 Federal Reserve Bulletin • January 1982 or any other tax-exempt savings certificate, in- firm commitment to purchase any assets eligicluding interest earned on such certificates from ble for such investment. other institutions, and regardless of during which (iv) If a member bank provides for automatic taxable years that interest is earned, no more than renewal of an ASC, depositors must be notified in a total of $1,000 ($2,000 in the case of a joint writing at least 15 days in advance of the maturity return) can be excluded from federal gross income of an ASC in the event the member bank cannot for all taxable years. Furthermore, interest earned renew the ASC because of its failure to satisfy the on a specific certificate cannot be excluded from residential financing requirement, Failure to give federal gross income if (A) that certificate is used such notice shall not result in automatic renewal as collateral for any loan, or (B) any part of the of the ASC. principal of that certificate is redeemed or dis- (v) This paragraph (i) expires January 1, 1983. posed of prior to maturity. BANK HOLDING COMPANY AND BANK MERGER (3) (i) A member bank may not issue ASCs after ORDERS ISSUED BY THE BOARD OF GOVERNORS March 31, 1982, under this paragraph unless an executive officer of the member bank certifies, in Orders Under Section 3 of Bank Holding a form determined by the member bank, that the Company Act member bank has complied with the "qualified residential financing" requirement set out in 26 CNCC Partners, U.S.C. § 128. The certification must be main- Chicago, Illinois tained by the member bank in its files and must be available to the member bank's primary supervi- Order Denying Formation of a Bank Holding sory agency upon request. The certification shall Company include appropriate supporting documentation, as determined by the member bank. CNCC Partners, Chicago, Illinois ("Applicant") has (ii) A member bank issuing ASCs during any applied for the Board's approval under section 3(a)(1) calendar quarter must use at least 75 per cent of of the Bank Holding Company Act (12 U.S.C. the lesser of: § 1842(a)(1)) for the formation of a bank holding com- (A) the proceeds from ASCs issued during a pany by acquiring 63 percent or more of the voting calendar quarter, or shares of Central National Chicago Corporation, Chi- (B) "qualified net savings," cago, Illinois ("Corporation"), which is a one-bank to provide "qualified residential financing" by the holding company by virtue of its 100 percent ownerend of the subsequent calendar quarter and may ship of Central National Bank in Chicago, Chicago, not issue additional ASCs until the 75 per cent Illinois ("Bank"). requirement is satisfied. Notice of the application, affording an opportunity (iii) For purposes of determining compliance with for interested persons to submit comments and views, the "qualified residential financing" requirement, has been given in accordance with section 3(b) of the the following applies: act. The time for filing comments and views has (A) the term "qualified net savings" includes expired and the Board has considered the application interest or dividends credited to deposit ac- and all comments received in light of the factors set counts; forth in section 3(c) of the act. (B) the amount of "qualified residential financ- Applicant, a nonoperating general partnership coming" is to be determined net of repayment of posed of a number of personal trusts with no other principal and pay downs, but sales of such as- subsidiaries, was organized for the purpose of becomsets may not be netted; ing a bank holding company by acquiring Corporation (C) the term "any loan for agricultural pur- and thereby indirectly acquiring Bank. Bank, with poses" is defined to have the same meaning as total deposits of approximately $436.9 million, is the items described in the instructions to the Report seventh largest commercial bank in Illinois and conof Condition of all Insured Commercial Banks, trols about 0.54 percent of total deposits in commercial schedule A, item 4 "Loans to Finance Agricul- banks in the state.1 Bank competes in the Chicago tural Production and Other Loans to Farmers, and schedule A, item 1(b) "Real Estate Loans Secured by Farmland," and (D) "qualified residential financing" includes a 1. Banking data are as of December 31, 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 49 banking market2 where it ranks as the seventh largest holding company should itself be financially sound, of 372 commercial banks and controls about 0.79 and should be in a position to gain access to additional percent of the market's commercial bank deposits. financial resources. Although the Board notes that Inasmuch as neither Applicant nor any of its principals Corporation's financial and managerial resources, is a principal of any other banking organization in the which are primarily dependent upon those of Bank, relevant market, consummation of the proposal will have been steadily improving over the past year, the not result in any significant adverse competitive ef- Board believes that the nature of Applicant's proposal fects. Accordingly, in the Board's view, competitive indicates that it may not serve as a source of financial considerations are consistent with approval. strength to Corporation and Bank. In particular, the Applicant's proposal contemplates the acquisition Board notes that Applicant's proposal to acquire the of preferred stock, as well as options on common preferred shares is wholly financed by borrowing.5 In stock, from the present principal shareholders of Cor- addition, Applicant's proposal enables it to acquire poration. Specifically, Applicant proposes to acquire control of approximately 24 percent of Corporation's Corporation's 6 percent cumulative, participating se- common stock for five years without making any ries A preferred stock ("preferred shares"), which are financial investment. In view of the lack of an approconvertible into approximately 38 percent of Corpora- priate funding commitment by Applicant and its princition's voting common stock. Applicant plans to con- pals, and given the highly leveraged financial structure vert one-half of the preferred shares immediately into of the proposal, the Board sees no benefit to Company common stock of Corporation. The total purchase or Bank. Inasmuch as Applicant does not propose to price of the preferred shares is $6 million, all of which make any immediate changes in Bank's services or Applicant proposes to borrow from its partners and operations, convenience and needs considerations the sellers. The application also encompasses Appli- lend no weight toward approval of this application. In cant's proposal to acquire an option that would allow it conclusion, the Board's judgment is that, based on the to purchase 429,728 shares of Corporation's common foregoing, the financial and managerial resources of stock over the next five years.3 Applicant would Applicant as they pertain to this proposal are unsatisobtain funds for the exercise of the options through factory, and therefore, banking considerations weigh borrowings or capital contributions from its partners. for denial of the application. During the life of the option the common stock will be On the basis of the record, the application is denied held in a voting trust controlled by Applicant's princifor the reasons summarized above. pals as voting trustees. Upon fully exercising all the By order of the Board of Governors, effective conversion rights and options described above, Appli- December 24, 1981. cant would own 63 percent or more of Corporation's outstanding voting shares. Voting for this action: Vice-Chairman Schultz and Gover- The Board has previously stated that it expects a nors Wallich, Partee, Teeters, Rice, and Gramley. Absent and not voting: Chairman Volcker. bank holding company to serve as a source of strength to its subsidiary bank(s). A bank holding company (Signed) JAMES MCAFEE, may serve as a source of strength by providing mana- [SEAL] Assistant Secretary of the Board. gerial expertise and by demonstrating a willingness to come to the assistance of its subsidiaries by providing additional capital or other appropriate financial sup- Florida National Banks of Florida, Inc., port when needed.4 In order to fulfill this role a bank Jacksonville, Florida 2. The Chicago banking market is approximated by Cook, DuPage, Order Approving Merger of Bank Holding and Lake Counties in Illinois. Companies 3. It is the Board's general policy not to approve an option for the purchase of shares that may never be exercised or which may be exercised over an extended time period. The Board's reluctance to Florida National Banks of Florida, Inc., Jacksonville, approve such open-ended proposals is based on the difficulty of adequately assessing, over an extended period, the financial and Florida ("Florida National"), a bank holding company managerial factors as they pertain to applicants and banks, that the Board is required to consider under the act. In addition, the Board 5.The Board's experience indicates that a bank holding company believes that approval of a proposal such as Applicant's that will not with a substantial amount of debt generally lacks the financial be consummated for an extended period would raise supervisory flexibility to meet unexpected problems of its subsidiary bank(s). With concerns and could lead to misunderstandings between the Board and a high level of debt there is a potential for straining the financial an applicant regarding the applicant's obligation to serve as a source resources of the banking organization and management is given less of strength to its subsidiary bank. incentive to conduct the affairs of the banking organization in a safe 4. Board of Governors of the Federal Reserve System v. First and sound manner. See, Emerson First National Company, 67 FEDER- Lincolnwood Corp., 439 U.S. 234 (1978); Emerson First National AL RESERVE BULLETIN 344 (1981); First Dodge City Bancshares, Inc., Company, 67 FEDERAL RESERVE BULLETIN 344 (1981). 67 FEDERAL RESERVE BULLETIN 800 (1981). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 Federal Reserve Bulletin • January 1982 within the meaning of the Bank Holding Company Act Company, Jacksonville, Florida ("Charter Mortof 1956, as amended (12 U.S.C. § 1841, et seq.) has gage"), that engages in the mortgage banking business applied for the Board's approval under section 3(a)(5) in Florida and in eight other states. Protestant asserts of the act (12 U.S.C. § 1842(a)(5)) to merge with that this proposal will substantially lessen existing Alliance Corporation, Jacksonville, Florida ("Alli- competition in the commercial banking and mortgage ance"), another such bank holding company, under banking product markets. the charter and title of Florida National. Florida Florida National's subsidiary, Florida National National would thereby acquire Jacksonville National Bank of Jacksonville ("FNBJ"), competes in the Bank, Jacksonville, Florida ("Bank"). Jacksonville banking market. FNBJ is the third largest Notice of the application, affording opportunity for banking organization located in that market, controlinterested persons to submit comments and views, has ling $433.0 million, or 19.1 percent, of deposits in been given in accordance with section 3(b) of the act. commercial banks in the market. Bank is the sixth The time for filing comments and views has expired, largest banking organization in the market, controlling and the Board has considered the application and all 5.6 percent of deposits in commercial banks in the comments received, including those of C. A. Ca- market. Consummation of the proposed merger would vendes Sociedad Financiera ("Protestant"), a minor- result in FNBJ becoming the second largest banking ity shareholder of Florida National,1 in light of the organization in the market, controlling 24.7 percent of factors set forth in section 3(c) of the act (12 U.S.C. deposits in commercial banks in the market. § 1842(c)). Although the combined market shares of Bank and Florida National, the fifth largest banking organiza- FNBJ in the Jacksonville market might normally raise tion in Florida, controls 25 banks with aggregate some concern about the elimination of significant deposits of about $1.96 billion, representing 5.0 per- existing competition, the Board notes that several cent of the total commercial bank deposits in the facts in the record in this case indicate that market state.2 Bank holds aggregate deposits of approximate- shares alone do not accurately reflect the effects of this ly $126.6 million, representing 0.3 percent of total application on existing competition. The Board notes deposits in commercial banks in the state, and is the that Bank, through its subsidiary Charter Mortgage, 71st largest banking organization in Florida. Upon conducts a substantial portion of its business in the consummation of the proposed merger, Florida Na- mortgage banking field. As a result, a substantial tional would be the fourth largest banking organization portion of Bank's deposits are related to the mortgage in the state with aggregate deposits of about $2.09 banking business, such as escrow accounts, and are billion, representing 5.3 percent of the total commer- derived from locations where Charter Mortgage concial bank deposits in the state. On the basis of all the ducts its business, primarily outside the Jacksonville facts of record, including the overall structure of banking market. In addition, Bank's loan portfolio is banking in Florida and in light of Florida National's comprised of a much larger percentage of home mortcommitment, discussed below, to divest Bank, the gages than the typical commercial bank in Florida. Board does not view the proposal as having signifi- Accordingly, because of the unique composition of cantly adverse effects on the statewide concentration Bank's assets and liabilities, market share data alone of banking resources in Florida. may not reflect adequately the direct and immediate Bank, Alliance's only subsidiary bank, competes in impact of this proposal on banking competition in the the Jacksonville banking market.3 In addition, Bank Jacksonville market. In any event, the potential anticontrols a wholly-owned subsidiary, Charter Mortgage competitive impact of this proposal has been substantially mitigated by Applicant's commitment to divest itself of Bank within 13 months of consummation of the proposal by selling Bank to another firm not 1. Florida National has requested the Board to strike the comments engaged in the banking business in the Jacksonville submitted by Protestant in opposition to the proposal, on the grounds market.4 Under the circumstances of this case, the that Protestant has unlawfully acquired control of 25 percent or more Board finds that consummation of the proposal would of the voting shares of Florida National without applying for the Board's prior approval as required by the act. The Board's Rules of result in only slightly adverse competitive effects in Procedure provide for notice, opportunity for public comment, and the Jacksonville commercial banking market. the submission of comments with respect to an application of this type. (12 C.F.R. § 262.3(b),(e)). Nothing in the Board's regulation With respect to mortgage banking activities, Florida appears to provide for refusal to accept comments that are filed in a National's subsidiary bank and Charter Mortgage timely manner and are germane to the merits of the application, such as these. The Board has ample authority under the act to investigate any alleged violation of the act. 4. If the application is approved, Applicant intends to retain Charter 2. All banking data are as of December 31, 1980. Mortgage, which is now a subsidiary of Bank. If as a result of the 3.The Jacksonville banking market comprises all of Duval County, divestiture Charter Mortgage becomes a direct subsidiary of Florida Florida, and the City of Orange Park, Florida. National, compliance with section 4 of the act would be required. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 51 compete for loan originations in seven markets in the Board notes that Protestant, in its calculations of Florida.5 However, Florida National and Charter the cost of the acquisition to Florida National, has Mortgage together originated only 1.7 percent of all failed to take into account the value of the $2.2 billion the single-family mortgages originated in these seven mortgage servicing portfolio of Charter Mortgage in markets during 1980. Charter Mortgage also engages in valuing Alliance's shares.6 After consideration of the the servicing of mortgage portfolios. Florida National, comments of Protestant and Florida National, the which services mortgages for its own account, does Board is unable to conclude that the price paid for not compete in this activity. Moreover, the servicing Alliance would have a substantially adverse impact on of mortgage loans is conducted in geographic markets the financial condition of Florida National. that are regional or national in scope. Accordingly, in Protestant also asserts that the proposed divestiture the Board's view, consummation of this proposal of Bank in connection with the proposal will have would not have any adverse effect on competition in adverse effects on the financial resources of Florida mortgage banking services. National and Bank. Protestant claims that the pur- Protestant has made a variety of allegations with chase price paid to Florida National will not be reregard to the impact of the proposed merger on the duced when the divestiture occurs, and that the sale of financial and managerial resources and the future Bank separately from its subsidiary, Charter Mortprospects of the companies involved. In particular, gage, which Florida National will retain, would de- Protestant asserts that the price to be paid by Florida prive Bank of its current management and a substan- National for the proposed purchase of the shares of tial proportion of its assets and earnings. However, Alliance is so excessive as to impair Florida National's Florida National has committed that the divestiture of financial condition and it would be unfair to the Bank would be accomplished in a separate transaction shareholders of Florida National. with a third party in which Florida National would Under the Act, there are some limits to the Board's certainly be compensated for the value of Bank. ability to resolve complaints by minority shareholders Moreover, it appears that, despite any reduction in against the management of a banking organization. A Bank's earnings due to loss of income attributable to Federal Circuit Court has ruled, for example, that the Charter Mortgage, Bank's overall condition would Board may not deny applications under the act solely remain satisfactory after the proposed divestiture. because of an applicant's failure to extend substantial- Applicant has further committed that the divestiture of ly equal purchase offers to minority shareholders. Bank will be accomplished in a manner that assures Western Bancshares, Inc. v. Board of Governors, 480 that Bank will remain a viable competitor in the F.2d 749 (10th Cir. 1973). However, if the price to be Jacksonville banking market.7 paid by an acquiring company is sufficiently dispropor- Protestant also alleges that the proposed merger is tionate to raise the prospect of financial harm to such designed solely to protect the existing management of company, such as might be evidenced by a depressed Florida National from challenges from Protestant, and earnings rate, such circumstances may present alleges that it has not been undertaken for a legitimate grounds for denial. See United Missouri Bancshares, corporate purpose. Florida National contends that the Inc., 58 FEDERAL RESERVE BULLETIN 155, 156 (1972). transaction was undertaken to expand Florida Nation- Also, if the acquiring company deals with minority al's activities into the mortgage banking business and shareholders unfairly or dishonestly, that fact may that negotiations that led to the proposed transaction reflect adversely upon the integrity of a bank holding were commenced during 1980, before Protestant had company's management. See Benson Bancshares, acquired any shares of Florida National. The act, Inc., 63 FEDERAL RESERVE BULLETIN 1009 (1977). however, does not require the Board to consider the After consideration of the entire record in this case, the Board's view is that evidence sufficiently estab- 6. Under generally accepted accounting principles, the value of lishing the prospect of a depressed earnings rate or loans serviced is not reported on the servicer's balance sheet. other material adverse effects relating to the financial However, the loan servicing portfolio represents a current source of income and, as evidenced by frequent sales or servicing portfolios, resources and future prospects of Florida National, represents current value to the servicer. If the value of Charter FNBJ, or Bank has not been presented. In this regard, Mortgage's servicing portfolio is included in the value Florida National will receive in the transaction, the price paid by Florida National is not so excessive as to result in financial harm. 5. In addition to the Jacksonville banking market, these are: the 7. Protestant requests that the Board defer action on the proposal Orlando banking market, comprising Orange County and southern until Florida National has entered into a definitive agreement for the Seminole County; the Daytona Beach banking market, comprising sale of Bank. In view of the fact that it appears likely that Bank can be eastern Volusia County; the Pensacola banking market, comprising divested without any substantial impairment of its financial condition, Escambia County; the Miami-Fort Lauderdale banking market, com- deferring action on the proposed merger appears unnecessary. The prising Dade and Broward Counties; the Eastern Palm Beach banking Board also notes that the acquisition of Bank by another banking market, comprising eastern Palm Beach County; and the Pinellas organization would be subject to regulatory approval by the appropri- County banking market. ate banking agencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 Federal Reserve Bulletin • January 1982 purpose for which a particular transaction, subject to Paragraph 5 of the Board's 1977 Order required the Board's prior approval, is entered into. Thus, Florida National's subsidiary, FNBJ, to resign as while the purpose of a proposed transaction may, in corporate trustee of the duPont Trust and prohibited some cases, have some bearing on the financial or any subsidiary of Florida National from thereafter managerial resources of the companies or banks in- serving as a trustee of the duPont Trust.10 Pursuant to volved, it is doubtful that the act authorizes the Board Paragraph 5, Bank succeeded FNBJ as the corporate to deny an application solely by reason of the appli- trustee of the duPont Trust. Protestant asserts that the cant's motivation in seeking the proposed acquisition, proposal violates Paragraph 5 because Bank, the corwhere that application otherwise satisfies all of the porate trustee, would become a subsidiary of Florida factors specified in the act.8 Based on the facts of National. However, as indicated earlier, Florida Narecord, the Board finds that consummation of this tional has committed to divest itself of Bank within 13 proposal would not adversely affect the financial con- months of consummation of the proposal. Also, Bank dition, managerial resources, or future prospects of has committed to resign as corporate trustee of the any of the companies or banks involved. It appears duPont Trust prior to consummation of the proposed that Florida National will be able to service the debt to transaction, and Florida National has committed that be incurred in connection with the transaction without neither Florida National nor any of its affiliates or an adverse effect on the condition of its subsidiary subsidiaries will serve as successor corporate trustee bank. The Board is also unable to conclude that the of the Trust, and that no director, officer, or employee proposed transaction is so lacking in a legitimate of Florida National, or any of its subsidiaries or corporate purpose or reflects so adversely on the affiliates, will serve in a similar capacity with such integrity of management as to warrant denial. In sum, successor corporate trustee.11 the Board has examined the financial soundness and Additionally, Protestant maintains that the contemmanagerial resources of all organizations involved in plated service of certain principals of Alliance with this application and concludes that financial and mana- Florida National after consummation would violate gerial considerations and future prospects are consis- Paragraph 1 of the 1977 Order, which prohibits any tent with approval. past, present or successor individual trustee, policy- Protestant also challenges the proposed merger on making employee, or agent of the duPont Trust, or any the grounds that it would violate the provisions of a director, officer or policy-making employee of any 1977 Board Order concerning the divestiture of Florida subsidiary or affiliate of the Trust, from serving as a National by the Alfred I. duPont Testamentary Trust director, officer or policy-making employee of Florida ("duPont Trust").9 The Order, dated September 21, National or any of its subsidiaries. The Board notes was designed to insure the effective and complete that the principals involved, although management separation of Florida National's banking and related officials of Bank, have not themselves been individual interests from the nonbanking interests of the duPont trustees of the duPont Trust, and have not served as Trust. Pursuant to the 1966 Amendments to the Bank directors, officers, policy-making employees, or Holding Company Act, the duPont Trust was required agents of the duPont Trust itself or any of its subsidiarto divest its interest in Florida National. By Order of ies or affiliates. The restrictions of Paragraph 1 there- October 15, 1973, the Board determined that the fore do not apply to these individuals. duPont Trust had failed to divest its control over Paragraph 7 of the Order prohibits any officer, Florida National, and ordered the duPont Trust to director, employee, or agent of Florida National or its submit a specific plan of divestiture to terminate its subsidiaries and affiliates from communicating in any control of Florida National. As part of its September manner with any trustee, policy-making employee, 1977 Order, the Board approved certain transactions agent or representative of the duPont Trust or any of pursuant to the final stage of this divestiture plan, as its subsidiaries concerning any matter relating to the effectively implementing congressional intent. In con- management, policies, or operations of Florida Nanection with its approval under this Order, the Board tional or any bank or nonbank subsidiary or affiliate imposed 12 requirements on the future conduct of thereof, except in the same manner and under the Florida National and the duPont Trust to insure the separation of the interests held by each. 10. The duPont Trust has six individual trustees as well as a corporate trustee. 8. The record indicates that Protestant has instituted a lawsuit 11. Protestant alleges that Bank's resignation as corporate trustee against the management of Florida National challenging the purpose will harm Florida National by depriving it of fee income for service as of this proposal as well as raising many of the other arguments corporate trustee. In light of the fact that Bank, since it became advanced in support of Protestant's arguments against the proposal. corporate trustee, has received only a nominal amount for its services, 9. The Alfred I. duPont Testamentary Trust, 63 FEDERAL RESERVE it does not appear that Bank's resignation will result in any substantial BULLETIN 940 (1977). harm to Florida National. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 53 same circumstances as communications are made to Upon consummation of the proposal, all banking all shareholders of Florida National. Protestant argues offices of Florida National will begin offering FHA/VA that Florida National violated Paragraph 7 by commu- mortgage loans, including certain loans under pronicating with certain senior management officials of grams now provided by Bank that are designed to Bank, the Trust's corporate trustee, regarding the assist moderate and low income families. Florida terms of the proposed transaction because such com- National also plans to expand construction lending to munications were not conducted in the same manner, residential and commercial builders and developers. and under the same circumstances, as communica- Considerations relating to the convenience and needs tions to all shareholders. While Paragraph 7 applies by of the communities to be served are consistent with its terms to the corporate trustee as well as to the approval of this application and outweigh any slightly individual trustees of the Trust, and while the princi- adverse effects on competition that might result from pals involved here are senior management officials of the transaction. Based on the foregoing and other facts Bank, which serves as corporate trustee, these com- of record, the Board has determined that consummamunications with Florida National were clearly not tion of the transaction would be consistent with the conducted in Bank's capacity as trustee of the duPont public interest and that the application should be Trust. In addition, the Board regards Paragraph 7 of approved.14 the 1977 Order as a means of preventing the continua- On the basis of the record, the application is aption of the type of control relationship by the duPont proved for the reasons summarized above. The trans- Trust over Florida National's day-to-day operations action shall not be consummated before the thirtieth that might be perpetuated by means of frequent com- calendar day following the effective date of this Order, munication between the two organizations on an ongo- or later than three months after the effective date of ing basis. Negotiations conducted during development this Order, unless such period is extended for good of the present transaction were preparatory to an cause by the Board or by the Federal Reserve Bank of extraordinary corporate acquisition, and did not in the Atlanta, pursuant to delegated authority. Board's view constitute a means of perpetuating ongo- By order of the Board of Governors, effective ing control in this manner.12 Accordingly, the Board December 10, 1981. concludes that the proposed transaction would not violate any of the provisions of the 1977 divestiture Voting for this action: Vice Chairman Schultz and Gover- Order and concludes that Florida National did not nors Wallich, Partee, Teeters, and Rice. Absent and not voting: Chairman Volcker and Governor Gramley. violate the Order by reason of its negotiations with senior management of Alliance in connection with the proposal.13 After consideration of the entire record, (Signed) JAMES MCAFEE, [SEAL] Assistant Secretary of the Board. the Board's view is that the record does not present evidence establishing conduct on the part of the parties involved, with respect to compliance with the Mercantile Texas Corporation, September, 1977 Order as well as other matters, of the Dallas, Texas type or degree warranting denial of the application on the basis of managerial resources. Order Approving Merger of Bank Holding Companies 12. Protestant urges the Board to grant the shareholders of Florida National the opportunity to vote on the proposed transaction, as an acceptable means of remedying the harm allegedly worked by Florida Mercantile Texas Corporation, Dallas, Texas, a bank National's asserted violation of Paragraph 7. Because the Board does not view the proposed transaction as violating Paragraph 7, the question of an appropriate remedy does not properly arise. The Board also notes that, at Protestant's request, a meeting of the shareholders 14. Protestant has requested that the Board conduct a hearing on has been called to consider whether the proposed transaction should this application, asserting that a hearing is necessary to examine the be submitted for shareholders approval. issues addressed in Protestant's written submissions. Under section 3 13. Protestant has presented no evidence to support its allegation of the act, a hearing is required only if the primary supervisory agency that Florida National consulted regarding the proposal with the late of the bank to be acquired recommends disapproval. The primary Mr. Edward Ball, who until his death in June 1981, owned a large supervisory agency in this case has not objected to the proposal. block of Florida National's shares and served as an individual trustee Although Protestant makes general conclusory statements that a of the duPont Trust. In addition, Protestant's reliance on an August, hearing would be "very illuminating", Protestant has offered no 1976 Board Order pertaining to another proposed acquisition by particular facts or reasoning supporting these assertions. Because no Florida National is misplaced. 62 FEDERAL RESERVE BULLETIN 696. evidence explicitly showing why written presentations are insufficient In that Order, the Board found that, with respect to the particular has been submitted, because it appears to the Board that each of the proposal involved, Florida National's management had engaged in issues addressed in Protestant's requests for a hearing has been certain types of behavior in disregard of statutory and regulatory satisfactorily addressed through written submissions of the parties, requirements that reflected so adversely upon the managerial factors and because Protestant's comments do not present material facts in in connection with that application as to constitute grounds for denial. dispute, the Board finds that a hearing is not warranted under the The present application does not involve similar conduct. Board's Rules of Procedure (12 C.F.R. § 262.3(e)). 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54 Federal Reserve Bulletin • January 1982 holding company within the meaning of the Bank comments have been submitted in favor of the propos- Holding Company Act (12 U.S.C. §§ 1841 et seq.), has al, principally by business and personal banking cusapplied for the Board's approval under section 3(a)(5) tomers of NCNB in North Carolina and Florida. Two of the act (12 U.S.C. § 1842(a)(5)) to merge with comments, from the Florida Bankers Association (also PanNational Group, Inc., El Paso, Texas. submitted on behalf of two competitors of Bank) and Notice of the application, affording opportunity for the Independent Bankers Association of America, interested persons to submit comments and views, has were received in opposition to the application princibeen given in accordance with section 3(b) of the act. pally on the grounds that Florida law does not autho- The time for filing comments and views has expired, rize such an interstate acquisition and that the Douglas and the Board has considered the application and all Amendment, section 3(d) of the Bank Holding Compacomments received in light of the factors set forth in ny Act (12 U.S.C. § 1842(d)), would prohibit such section 3(c) of the act (12 U.S.C. § 1842(c)). acquisition. Comments were also requested and re- On the basis of the record, the application is granted ceived from the Florida Attorney General ("Attorney for the reasons set forth in the Board's Statement, General") and the Florida Comptroller of Banking which will be released at a later date. This transaction ("Comptroller"). The Florida Attorney General, in his shall not be made before the thirtieth calendar day submission, deferred to the Comptroller with respect following the effective date of this Order, or later than to the interpretation of relevant provisions of Florida three months after the effective date of this Order, law, and included a staff memorandum submitted to unless such period is extended for good cause by the the Comptroller which concluded that Florida law Board or by the Federal Reserve Bank of Dallas, authorizes NCNB to acquire a Florida bank. The pursuant to delegated authority. Florida Comptroller opined that even assuming Flori- By order of the Board of Governors, effective da law does not prohibit this proposal, Florida law December 21, 1981. does not specifically authorize the proposed acquisition within the meaning of the exception to the Doug- Voting for this action: Chairman Volcker and Governors las Amendment's prohibition against interstate bank- Schultz, Wallich, Partee, and Gramley. Voting against this ing. The Comptroller also forwarded to the Board a action: Governors Teeters and Rice. legal memorandum prepared by his General Counsel, which explained this position, basing it principally on (Signed) JAMES MCAFEE, the conclusion that the legislative intent of relevant [SEAL] Assistant Secretary of the Board. Florida law was not to expand the powers of out-ofstate companies to operate in the Florida market, but rather to prohibit such expansion. NCNB Corporation, Because the Board would be precluded from ap- Charlotte, North Carolina proving an application where the proposed acquisition would violate state or federal law,1 the legality of the Order Approving Acquisition of Bank proposal must be established before the statutory factors contained in section 3(c) may even be consid- NCNB Corporation, Charlotte, North Carolina, a ered. The Florida statute at issue in this case is section bank holding company within the meaning of the Bank 658.29 of Florida Statutes Annotated ("FSA"), which Holding Company Act, whose banking subsidiary's generally prohibits the acquisition of Florida banks operations were principally conducted in North Caro- and trust companies by out-of-state companies, but lina on the effective date of the Douglas Amendment to also contains a provision excepting from such prohibithe Bank Holding Company Act, has applied for the tion any out-of-state bank holding company which, on Board's approval under section 3(a)(3) of the act December 20, 1972, owned all the assets of, or had (12 U.S.C. § 1842(a)(3)) to acquire The First National Bank of Lake City,, Lake City, Florida ("Bank"). Notice of the application, affording opportunity for interested persons to submit comments and views, has 1. Under Whitney National Bank in Jefferson Parish v. Bank of New Orleans and Trust Company, 379 U.S. 411 (1965), the Board is been given in accordance with section 3(b) of the act. prohibited from approving an application by a bank holding company The time for filing comments and views has expired, if consummation of the proposal contemplated by such application and the Board has considered the application and all would be prohibited by a valid state law. Id. at 419. Section 3(d) of the Bank Holding Company Act precludes the comments received, including the submission of the approval of an application under section 3 if such approval would Comptroller of the Currency, in light of the factors set permit an interstate banking acquisition unless the acquisition ". . .is specifically authorized by the statute laws of the state in which such forth in section 3(c) of the act (12 U.S.C. § 1842(c)). In bank is located, by language to that effect and not merely by response to the notice of this application, twenty-two implication." 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Legal Developments 55 control over, a Florida bank or trust company.2 Be- I. Constitutionality cause NCNB had, on October 4, 1972, acquired the Trust Company of Florida, it argues that it qualifies Protestants contend that section 658.29(3)(d) FSA, the within the plain meaning of the statute for the excep- provision of Florida law upon which NCNB relies for tion from the Florida prohibition against interstate its authorization to acquire Lake City Bank, "has no acquisitions. This exception to the interstate prohibi- legal existence" in view of the decision of the Supreme tion is relied upon by NCNB as a specific authoriza- Court in Lewis v. BT Investment Managers, Inc.,4 tion by Florida permitting out-of-state bank holding determining that a portion of the predecessor to seccompanies, such as NCNB, to acquire Florida banks tion 658.29 FSA, restricting the offering of investment within the meaning of the exception to the general advisory services, is unconstitutional. The Supreme federal prohibition against interstate acquisitions con- Court decision, however, did not directly affect those tained in the Douglas Amendment to the act.3 Thus, portions of section 658.29 FSA that are applicable in this case presents three principal legal issues to be this case. Although the Supreme Court decision in the determined by the Board: the constitutionality of Lewis case does contain dicta questioning whether the section 658.29 FSA, the permissibility of NCNB's Douglas Amendment authorizes any state law restricproposal under that statute, and its permissibility tions on banking, only the portion of section 658.29 under the Douglas Amendment. Each of these issues is FSA dealing with restrictions on investment advisor discussed in detail below. acquisitions was deemed unconstitutional in view of its contravention of the Commerce Clause. The Supreme Court's opinion does not indicate that state legislation that goes no further than a repetition of the 2. The relevant portions of section 658.29 provide as follows: Douglas Amendment's restrictions on interstate bank (1) Except as provided in subsection (3), no bank, trust company, or bank holding company, the operations of which are principally acquisitions would be unconstitutional. The opinion conducted outside this state, shall acquire, retain, or own, directly or only holds that state regulation of bank holding compaindirectly, all, or substantially all of the assets of, or control over, any nies may not exceed the scope of authority granted by bank or trust company having a place of business in this state where the business of banking or trust business or functions are conducted, Congress, and that authority did not extend to investor acquire, retain, or own all, or substantially all, of the assets of, or ment advisory services offered by bank holding comcontrol over, any business organization having a place of business in panies. this state where or from which it furnishes investment advisory services in this state. In a 1975 decision, the United States Court of * * * * Appeals for the D.C. Circuit considered the constitu- (3) Notwithstanding any other provisions of this section, the restrictions and prohibitions of this seciton shall not apply: tionality of an Iowa statute that was similar to section (a) To the ownership or control of shares acquired by a bank, trust 658.29 FSA. The Iowa statute limited out-of-state company, or bank holding company prior to January 1, 1972. bank holding companies, with the exception of those (b) To any acquisition of a bank, trust company, or investment advisory business organization if an application for approval of such that controlled two or more Iowa banks on a specified acquisition or notice of proposed investment advisory activities was date, from acquiring an Iowa bank, and the Court filed with the Department of Banking and Finance, or the Board of Governors of the Federal Reserve System or other appropriate federal determined that statute to be constitutional.5 The regulatory agency having jurisdiction, prior to June 1, 1972. Court of Appeals held that the Iowa statute did not * * * * violate the equal protection clause of the federal (d) To any bank, trust company, or bank holding company, the operations of which are principally conducted outside this state, Constitution since the statute bears a rational relationwhich, on December 20, 1972, owned all the assets of, or control over, ship to a legitimate state purpose (that is, that the state a bank or trust company located within and doing business within this state. would not be well served if out-of-state bank holding 3. The Douglas Amendment (12 U.S.C. § 1842(d)), the provision of companies, with a specified exception, were allowed Federal law concerning interstate acquisitions by bank holding com- entry without restriction into the Iowa market), and panies of banks, provides as follows: (d) Notwithstanding any other provision of this section, no applica- that it was not implicit in permitting state law to tion shall be approved under this section which will permit any bank govern with respect to certain federal statutes to holding company or any subsidiary thereof to acquire, directly or prohibit selective acquisitions. indirectly, any voting shares of, interest in, or all or substantially all of the assets of any additional bank located outside of the State in which The Board has on prior occasions taken the position the operations of such bank holding company's banking subsidiaries that it possesses neither the authority nor the expertise were principally conducted on the effective date of this amendment or the date on which such company became a bank holding company, whichever is later, unless the acquisition of such shares or assets of a state bank by an out-of-state bank holding company is specifically authorized by the statute laws of the State in which such bank is located, by language to that effect and not merely by implication. For the purposes of this section, the State in which the operations of a bank holding company's subsidiaries are principally conducted is that 4. 447 U.S. 27 (1980). state in which total deposits of all such banking subsidiaries are 5. Iowa Independent Bankers v. Board of Governors of the Federal largest. Reserve System, 511 F.2d 1288 (D.C. Cir. 1975). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 Federal Reserve Bulletin • January 1982 to pass on the constitutional validity of state laws;6 Protestants disagree with NCNB's conclusion that however, language in the above-described Iowa deci- section 658.29 FSA is clear and unambiguous on its sion indicates the Board should not merely presume face, and would resort to legislative history to prove the constitutional validity of state law.7 The Board the clear intent of the relevant Florida statute. In this believes, in any event, that it should not hold a state connection, Protestants argue that the rules of statustatute to be unconstitutional without clear and un- tory construction as enunciated by the Florida state equivocal evidence of the inconsistency of the state courts require that "where a literal interpretation of law with the federal Constitution. In the absence of the statute would lead to an unreasonable conclusion such clear and unequivocal evidence in this case, the or purpose not designated by the legislature, it is the Board concludes that the portion of the Florida statute Court's duty to interpret the statute in accord with the that is in question here only goes as far as has been clear purpose and intent of the legislature."9 Protespermitted by Congress under the Douglas Amend- tants state that the purpose of section 658.29 FSA is to ment, and thus no inconsistency arises between the prohibit the acquisition of Florida banks and trust state statute and the regulation of interstate commerce companies by non-Florida holding companies. This by Congress. purpose would be undercut by reading the exceptions In view of the determination that, for the purpose of to section 658.29 FSA broadly to allow Florida banks applying the Bank Holding Company Act, section to be acquired by grandfathered non-Florida compa- 658.29 FSA is not unconstitutional, the remaining nies that owned only Florida trust companies at the issues are whether NCNB's proposal is legally permis- time the legislature acted. They contend that a more sible under that provision of Florida law and also consistent reading which gives full effect to the lanunder the Douglas Amendment (section 3(d) of the guage of section 658.29 FSA and its exceptions, is that act). banks, trust companies, and bank holding companies that were engaged in grandfathered activities are ex- II. Permissibility Under Florida Law cepted from the prohibitions against engaging in such grandfathered activities only. Protestants conclude Section 658.29(3)(a) FSA excepts from the general that not only is such a reading consistent with the prohibition against interstate banking in Florida "any general purpose of the statute, but it is also consistent bank, trust company, or bank holding company, the with the purpose of grandfathering activities, which is operations of which are principally conducted outside to permit companies to continue activities already [Florida] which, on December 20, 1972, owned all the engaged in without expanding their powers to engage assets of, or control over, a bank or trust company in other activities. located within and doing business within [Florida]." The Board has considered both NCNB's and Protes- NCNB argues that because the language of section tant's arguments on the permissibility under Florida 658.29 FSA is clear and unambiguous on its face, there law of NCNB's proposed acquisition of Lake City is no reason to, nor is it legally correct to, resort to Bank, and has concluded that subsection 658.29(3)(d) legislative history to attempt to contradict the plain FSA on its face, clearly and unambiguously excepts an meaning of the statute.8 NCNB further states that in out-of-state company, which, on December 20, 1972, this case there does not appear to be any relevant owned or controlled a Florida bank or trust company, legislative history that contradicts the plain meaning of from all the restrictions and prohibitions in section the statute. 658.29 FSA. The language authorizes the acquisition of additional banks and trust companies in Florida, as 6. See, e.g., Bankers Trust New York Corporation, 59 FEDERAL opposed to merely grandfathering the retention of RESERVE BULLETIN, 364, (1973); NCNB Corporation, 59 FEDERAL then-owned banks and trust companies, since it is RESERVE BULLETIN 304, 306 (1973); and Northwest Bancorporation, phrased to free qualifying companies from all the 38 Federal Register 21,530 (1973). 7. Iowa Independent Bankers v. Board of Governors of the Federal prohibitions of section 658.29 FSA, including both Reserve System, 511 F.2d 1288, 1293 n.4 (D.C. Cir. 1975). retentions and future acquisitions.10 Under Florida 8. It is a fundamental principle of statutory construction that one law, as interpreted by Florida Courts, if the language should not resort to legislative history to contradict the plain words of a statute. The plain meaning rule of statutory construction is that "where the language is plain and admits of no more than one meaning the duty of interpretation does not arise and the rules which are to aid doubtful meanings need no discussion." C. Sands, 2A Sutherland Statutory Construction, § 46.01 (1973). Although it is also a funda- 9. State ex rel Register v. Safer, 368 So.2d 620 (Fla. App. 1979); mental rule of statutory construction that a statute should be con- See also, Conascenta v. Giordano, 143 So.2d 682 (Fla. App. 1962). strued in such a way as to effectuate the legislative intent, the Florida 10. Subsection 658.29(3)(a) FSA specifically deals with retentions courts have clearly stated that, in interpreting Florida statutes the in excepting from the general prohibition the ownership or control of language of the particular statute must be the primary guide to its shares acquired by a bank, trust company, or bank holding company meaning. See, e.g., S.R.G. Corp. v. Dept. of Revenue, 365 So.2d prior to January 1, 1972. In addition, subsection 658.29(3)(b) provides 687,689 (Fla. 1978). an exception covering acquisitions that were pending on June 1, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 57 of a statute is free from ambiguity, the statute must be only attempts to explain the intended scope of Floriapplied without extrinsic aids to assist in its interpreta- da's prohibition on acquisitions by out-of-state firms. tion. In Tropical Coach Line, Inc. v. Carter, 121 So.2d It does not address the scope of the continuing grand- 779 (Fla. 1980), the Court stated that "If the language father rights of the out-of-state-firms. The Board has, of the statute is clear and unequivocal, then the in effect, been requested by the protestants to draw the legislative intent must be derived from the words used inference that since the Florida legislature intended to without involving incidental rules of construction be very restrictive about the entry of new out-of-state . . ." Id. at 782. See also, Thayer v. State, 335 So.2d firms, it also intended to be very restrictive about the 815 (Fla. 1976) and State v. Egan, 287 So.2d 1 (Fla. grandfather rights of the firms that were already pres- 1973).11 ent in Florida. It would be particularly inappropriate to Even if it were appropriate to resort to the legisla- draw such an inference in light of the clear language of tive history on this provision, that history does not the exception in section 658.29 and the general rules of provide a helpful guide to the meaning of the scope of statutory interpretation limiting resort to legislative the grandfathering exception in section 658.29(3)(d) history only where the statutory language is unclear. FSA. The only legislative history that has been sub- Based upon the above, it is the Board's determinamitted on this point is recent affidavits by individuals tion that NCNB may, in accordance with Florida law, involved in the enactment in 1972, of section 65 FSA acquire, retain, or own all the assets of, or control and these documents containing conflicting interpreta- over, any Florida bank or trust company. Therefore, tions of the relevant provisions may not be considered the only remaining legal issue in this case is whether as probative since individual views of the legislators or section 658.29 FSA satisfies the Douglas Amendment draftsmen do not necessarily reflect the views of the requirement that the acquisition by NCNB, an out-oflegislature.12 The remainder of the legislative history state bank holding company, of a Florida bank be "specifically authorized" by Florida law "by language to that effect and not merely by implication." III. Permissibility Under Federal Law Therefore, since subsection 658.29(3)(d) should not be interpreted as superfluous language duplicating the exceptions in subsections 3(a) and (b), it must have been included to authorize future acquisitions of The Douglas Amendment was part of the original Bank Florida banks and trust companies by grandfathered out-of-state Holding Company Act of 1956, and was added on the companies. In addition, subsection 658.29(3)(d) FSA has been utilized Senate floor for the express purpose of preventing the as authority for ten acquisitions of Florida banks and trust companies by bank holding companies qualifying, like NCNB, for the exception creation or expansion of a multi-state bank holding contained in subsection 658.29(3)(d) and such acquisitions were company through the acquisition of a bank outside of approved by Florida banking authorities. Although it is recognized that each of these acquisitions involved the same type of Florida the state in which the holding company has its princiorganization (bank or trust company) as the acquiring institution had pal banking business. The Douglas Amendment repreowned prior to the grandfather date, and NCNB is seeking to acquire a sents a decision by Congress to give each state the bank while its trust activities are the grandfathered activity, there is nothing in the Florida statute restricting a grandfathered company's right to determine for itself whether or not it would acquisitions to the grandfathered activity. The statute consistently allow an out-of-state bank holding company to acquire refers to "bank or trust company" in the alternative, thereby indicating that if a holding company qualifies for grandfather rights, it is or establish a bank within its boundaries. The authoriauthorized to make future acquisitions of both banks and trust zation to states to permit out-of-state acquisitions of companies. their banks is required to be specific and must be made 11. This analysis of Florida law is supported by a staff memorandum of November 18, 1981, from the Office of the Florida Attorney by language to that effect and not merely by implica- General that was forwarded to the Florida Comptroller by the tion. Attorney General. The memorandum cites a number of Florida Neither the Board nor the courts have dealt directly precedents for the proposition that a primary indicator of legislative intent is the language of the statute itself. The memorandum also with the question of what statutory language is necesstates that under the plain language of the relevant Florida statute, sary to "specifically authorize" an out-of-state com- NCNB (assuming it owned a Florida trust company on the grandfather date) would appear to be exempt from the restrictions of section pany to acquire a bank within the meaning of the 658.29 FSA prohibiting the acquisition of Florida banks and trust exception to the Douglas Amendment prohibition. companies by non-Florida holding companies. The memorandum With respect to the question of the permissibility of further states that the relevant statute does not appear to contain any limitation restricting NCNB's acquisitions only to trust companies, NCNB's proposal under the Douglas Amendment, and such a restriction cannot be implied from the statutory language. NCNB argues that section 658.29 FSA specifically The memorandum concludes that NCNB is not prohibited from deals on its face with the question of whether to acquiring a Florida bank under Florida law. authorize out-of-state bank holding companies to ac- 12. Aldridge v. Williams, 44 U.S. 9, 24 (1845); U.S. v. Trans- Missouri Freight Assn., 166 U.S. 290, 318 (1897); Binns v. U.S., 194 quire Florida banks and does so authorize NCNB to U.S. 486, 495 (1904); Duplex Printing Press Co. v. Deering, 254 U.S. acquire Florida banks based upon NCNB's qualifica- 443, 474 (1921); U.S. v. United Mine Workers of America, 330 U.S. 258 (1947); Fields v. Zinman, 394 So.2d 1133 (Fla. D.C. App. 1981). tion for an exception to the interstate prohibition. That Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 Federal Reserve Bulletin • January 1982 is, although Florida law generally prohibits such inter- legislation was to reiterate and supplement federal state acquisitions, it also excepts certain grandfath- prohibitions against out-of-state entry into its financial ered companies, like NCNB, from the prohibition, and markets, it is unlikely that Florida intended the same this exception is a specific authorization, by language legislation to satisfy the exception to the federal prohito that effect and not merely by implication. Because bition for institutions that did not even conduct a the Douglas Amendment requires no particular lan- grandfathered banking business in Florida. guage for state authorization of interstate acquisitions, Moreover, Protestants argue that because the Flori- NCNB concludes that an exception to the interstate da lawmakers were aware of the federal prohibition acquisition prohibition would appear to satisfy the against interstate banking, they could easily have requirements of the Douglas Amendment just as well specifically authorized out-of-state entry to override as a state statute that gives such permission as a the federal prohibition. However, neither Florida law, positive grant of authority. In this connection, NCNB nor the legislative history thereof shows any intent to further contends that implied authority arises only override the federal prohibition against interstate where the law neither expressly authorizes nor ex- banking. pressly prohibits an action. The Florida Comptroller has also submitted an Protestants disagree with NCNB's conclusion that opinion prepared by the General Counsel of Florida Florida law specifically authorizes out-of-state holding Banking Department, based upon arguments similar to companies to acquire Florida banks. They state that those made by Protestants, that Florida law does not the original section 658.29 FSA applied only to the specifically authorize the proposed acquisition by lanacquisition of Florida trust companies by out-of-state guage required by the Douglas Amendment. The Genbanks, trust companies, and holding companies,13 and eral Counsel's opinion states that it appears that the did not restrict the acquisition of Florida banks by intent of the legislature in including the grandfather non-Florida companies in any way. The amendments provision was to preclude a judicial finding that the to the original section 658.29 FSA extended certain newly increased prohibitions were to be applied retroprohibitions and restrictions to the acquisition of Flori- actively and, thus, unconstitutionally. In addition, he da banks and investment advisory organizations. Pro- argues that nothing in the legislative history indicates a testants contend that the purpose of these amend- legislative intent to expand the powers of out-of-state ments was to close loopholes in the law that permitted companies in Florida, but rather it was to prohibit such non-Florida companies to acquire Florida banks and expansion. The opinion further states that even if the investment advisory organizations. Thus, Protestants language of the statute were interpreted to exempt conclude, after examining the available legislative grandfathered companies from Florida's interstate achistory and the situation that prompted these amend- quisition prohibition, this would not be sufficient for ments,14 that these amendments were adopted to re- the Douglas Amendment, which requires specific austrict, and not encourage, out-of-state entry and, thorization by language to that effect and not merely therefore, the amendments could not be considered a by implication: an exception to a prohibition may not specific authorization by Florida for acquisitions of be read as an affirmative grant of authority. Florida banks by out-of-state holding companies for The Florida Comptroller, in his opinion letter, does purposes of the Douglas Amendment. not analyze the scope, in the context of the application In the Protestants' view, the exception to interstate of Florida law, of the rights granted under the grandfabanking contained in the Douglas Amendment re- ther provisions of section 658.29(3)(d) FSA. Instead he quires that a state "consciously and deliberately" has concluded that the Florida statute does not satisfy choose to allow out-of-state bank holding companies the specific authorization requirement of the Douglas to operate banks within the state's borders, and nei- Amendment. Although it is the policy of the Board to ther Florida's law nor the history of its enactment give weight to interpretations of state law by authodemonstrates a deliberate choice to permit NCNB to rized state authorities, the Florida Comptroller has operate Florida banks. That is, Protestants argue that addressed the question of interpreting a federal law— if Florida's principal purpose in enacting the subject whether the requirements of the Douglas Amendment to the Bank Holding Company Act have been fulfilled. As the Attorney General of Florida notes, and the 13. Laws of Florida, Ch. 72-96, effective March 28, 1972. 14. The acquisition by Royal Trustco Limited, a Canadian banking Board concurs, the interpretation of the scope and organization, of a Florida bank apparently prompted the amendment meaning of the Douglas Amendment is a matter on of section 658.29 FSA, as the Florida legislature became aware which the Board has both the necessary expertise and through that transaction that the Douglas Amendment would not prohibit a foreign (non-U.S.) holding company from acquiring a the Congressionally mandated responsibility.15 Florida bank. The amendments to section 658.59 FSA were intended to close this loophole allowing Florida bank acquisitions by non- 15. See, Whitney National Bank in Jefferson Parish v. Bank of New Florida companies. Orleans and Trust Company, 379 U.S. 411 (1965). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 59 After considering all the evidence of record, and with grandfathered banking activities, they have treatparticularly the language of section 658.29 FSA and ed the Florida statutes as a specific authorization. The the Douglas Amendment in view of the rules of question of whether this admittedly specific authorizastatutory construction, the Board concludes that Flori- tion also covers the acquisition of bank shares by a da law authorizes grandfathered out-of-state compa- bank holding company that was grandfathered to own nies to acquire Florida banks and that this state a trust company has been answered affirmatively authorization is sufficient for purposes of satisfying the based on the plain meaning of the Florida statute and Douglas Amendment.16 The basis for the Board's the lack of any probative legislative history that exdeterminations is summarized as follows. First, sec- plains the scope of the grandfather rights. tion 658.29 FSA, clearly, and on its face, excepts Finally, in considering an Iowa statute on interstate certain grandfathered institutions from Florida's inter- banking, the language constituting authorization took state banking and trust company prohibitions, and a form similar to the Florida statute, that is, of a there is no evidence from legislative history to contra- prohibition and an exception. The Iowa statute prodict the plain meaning of this statute. Moreover, staff vides that "Nothing in this division shall be construed of Florida's Attorney General's Office has confirmed to authorize a bank holding company which is with this view in concluding that a company, like NCNB, respect to the state of Iowa an out-of-state bank which qualifies for the grandfather exception in sec- holding company ... to acquire any . . . interest in tion 658.29 FSA, would not be prohibited under Flori- . . . any bank in this state, unless such bank holding da law from acquiring both banks and trust companies company was on January 1, 1971, registered with the in Florida regardless of which of those two activities it Federal Reserve Board as a bank holding company, had been engaged in on the grandfather date. and on that date owned at least two banks in this Second, the language in question from section 3(d) state" (Iowa Code Ann. § 525,1805 (Supp. 1974-75)). of the Bank Holding Company Act was drawn from The Court of Appeals, upon considering this provithe even more stringent test of the McFadden Act, that sion, held the language to be both constitutional and the permission for statewide branching be by language sufficient for satisfying the requirements of the Doug- "specifically granting such authority affirmatively and las Amendment.19 Although in that case the specific not merely by implication." A 1933 opinion of the issue of whether the Iowa legislature intended the United States Attorney General took the position that exception to the prohibition as an authorization was this language would not allow approval of branching not before the Court, the Court implicitly approved the based on state law inaction or silence. However, he use of the exception to a prohibition form of language held that state action in the form of an exception to a to satisfy the requirements of the Douglas Amendprohibition was a sufficient authorization for the pur- ment. Based upon this precedent, it may be concluded poses of the McFadden Act.17 Congress, when adopt- that the similar Florida exception to a prohibition also ing the McFadden Act's language in the Douglas satisfies the Douglas Amendment. Amendment, is presumed to have known the adminis- Based upon the above the Board concludes that trative interpretation of that authorization test.18 NCNB, as a qualified grandfathered organization un- Third, Florida has itself treated this language as an der section 658.29 FSA, is authorized under Florida authorization. As noted above, the Florida banking law to acquire Florida banks and therefore further authorities have approved ten acquisitions by grand- qualifies for the exception to the Douglas Amendfathered companies under this provision. While all the ment's general prohibition against interstate banking. applications and approvals were either of trust compa- Accordingly, the Board's judgment is that NCNB's nies by bank holding companies with grandfathered proposed acquisition of Lake City Bank is permissible trust activities, or banks by a bank holding company under both state and federal law. NCNB controls one banking subsidiary (deposits of $3.5 billion) headquartered in Charlotte, North Carolina, and operates 175 offices throughout the state. It is North Carolina's second largest banking organization with 19.3 percent of the total deposits in commercial banks in the state.20Lake City Bank (deposits of $21.6 16. In this connection the Board has taken into consideration the fact that Florida would be without authority to legislate on interstate banking absent the authority given it pursuant to the Douglas Amendment. Therefore, the exception to the Florida prohibition against interstate banking must also be applicable to the federal prohibition. 19. Iowa Independent Bankers v. Board of Governors of the 17. 37. Op. Atty. Gen. 325 (1933). Federal Reserve System, 511 F.2d 1288 (D.C. Cir. 1975). 18. Massachusetts Mutual Life Insurance Co. v. United States, 228 20. All banking data are as of December 31, 1980, unless otherwise U.S. 269 (1933). indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

60 Federal Reserve Bulletin • January 1982 million) has a single banking office in the relevant Voting for this action: Vice Chairman Schultz and Goverbanking market21 where it ranks second among three nors Wallich, Partee, Teeters, and Rice. Absent and not voting: Chairman Volcker and Governor Gramley. banks as of June 30, 1980, with 26.4 percent of the market's total commercial bank deposits. Several of (Signed) JAMES MCAFEE, NCNB's nonbank subsidiaries operate in Florida; [SEAL] Assistant Secretary of the Board. however, a distance of approximately 45 miles separates the nearest subsidiary's office from Lake City Bank. Based upon the above and all the facts of record, consummation of the proposed transaction Republic of Texas Corporation, would have no significant adverse effects upon exist- Dallas, Texas ing or potential competition. The financial and managerial resources and future Order Approving Acquisition of Bank prospects of NCNB, its subsidiaries, and Lake City Bank are consistent with approval. Following consum- Republic of Texas Corporation, Dallas, Texas, a bank mation of the proposed acquisition, NCNB proposes holding company within the meaning of the Bank to examine the feasibility of reducing Lake City Holding Company Act (12 U.S.C. §§ 1841 et seq.), has Bank's service charges, and making credit life and applied for the Board's approval under section 3(a)(3) credit accident and health insurance available to cus- of the act (12 U.S.C. § 1842(a)(3)) to acquire 100 tomers at rates below those currently charged by Lake percent, less directors' qualifying shares, of the voting City Bank. NCNB also intends to offer new or im- shares of Citizens National Bank of Waco, Waco, proved services to Lake City Bank's customers, in- Texas. cluding overdraft lines of credit, expanded agricultural Notice of the application, affording opportunity for and commercial lending, trust services, and on-line interested persons to submit comments and views, has automated teller machines. In addition, NCNB intends been given in accordance with section 3(b) of the act. to open branches, which should provide widespread The time for filing comments and views has expired, access to all these services and products. and the Board has considered the application and all Finally, Lake City Bank's affiliation with NCNB comments received in light of the factors set forth in will provide Lake City Bank with access to NCNB's section 3(c) of the act (12 U.S.C. § 1842(c)). financial and managerial resources, thus supporting On the basis of the record, the application is granted Lake City Bank's future growth and increasing its for the reasons set forth in the Board's Statement, competitive effectiveness. Thus, the Board concludes which will be released at a later date. This transaction that considerations relating to the convenience and shall not be made before the thirtieth calendar day needs of the community to be served lend weight following the effective date of this Order, or later than toward approval of this application. three months after the effective date of this Order, Based upon the foregoing and other considerations unless such period is extended for good cause by the reflected in the record, the Board's judgment is that Board or by the Federal Reserve Bank of Dallas, the proposed acquisition is in the public interest and pursuant to delegated authority. that the application should be approved. By order of the Board of Governors, effective On the basis of the record, the application is ap- December 21, 1981. proved for the reasons summarized above. The transaction shall not be made before the thirtieth calendar Voting for this action: Chairman Volcker and Governors day following the effective date of this Order, or later Schultz, Wallich, Partee, Rice, and Gramley. Voting against this action: Governor Teeters. than three months after the effective date of this Order, unless such period is extended for good cause by the Board, or by the Federal Reserve Bank of (Signed) JAMES MCAFEE, Richmond, pursuant to delegated authority. [SEAL] Assistant Secretary of the Board. By order of the Board of Governors, effective December 9, 1981. United Bank Corporation of New York, Albany, New York Order Approving Acquisition of Bank United Bank Corporation of New York, Albany, New 21. The relevant banking market is approximated by Columbia County, Florida. York, a bank holding company within the meaning of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 61 the Bank Holding Company Act, has applied for the branch in the market with total deposits of $12.7 Board's approval under section 3(a)(3) of the Bank million, representing 4.8 percent of market deposits. Holding Company Act (12 U.S.C. § 1842(a)(3)) to Based upon all the facts in the record, the anticompetiacquire 100 percent of the voting shares of the succes- tive effects of the transaction are significantly mitigatsor by merger to The Oneida National Bank and Trust ed by the structure and rural nature of the Hamilton- Company of Central New York ("Bank"), Utica, New Essex-Clinton banking market. Moreover, the Board York. The bank into which Bank is to be merged has notes that although Applicant and Bank compete in no significance except as a means to facilitate the this market, the distance between the competing ofacquisition of the voting shares of Bank. Accordingly, fices is 110 miles. Thus, having considered all the facts the proposed acquisition of shares of the successor in the record, the Board is of the opinion that consumorganization is treated herein as the proposed acquisi- mation of the proposal would have only slightly adtion of shares of Bank. verse effects on existing competition in this market. Notice of the application, affording opportunity for In the Rochester banking market, Applicant is the interested persons to submit comments and views, has 14th largest commercial banking organization, and been given in accordance with section 3(b) of the act operates one branch with total deposits of $10.5 mil- (12 U.S.C. § 1842(b)). The time for filing comments lion, representing 0.2 percent of the market's commerhas expired and the Board has considered all com- cial bank deposits. Bank has two branches in the same ments received, including those of the New York State market with total deposits of $18.0 million, represent- Banking Commissioner, in light of the factors set forth ing 0.4 percent of market deposits, and ranks as the in section 3(c) of the act (12 U.S.C. § 1842(c)). 13th largest commercial banking organization in the Applicant, the 16th largest commercial banking or- Rochester market. In view of the small combined ganization in New York, controls 7 subsidiary banks, market share that would result from consummation, with aggregate deposits of approximately $1.9 billion, the Board finds that the acquisition would have no representing approximately 1.1 percent of total depos- serious adverse effects on existing competition in the its held by commercial banks in the state.1 Bank is the Rochester banking market. 23rd largest commercial banking organization in New Bank's remaining 31 branches are located in 4 York, with $695.0 million in total deposits, represent- banking markets in which Applicant is not representing about 0.4 percent of deposits in commercial banks ed, Utica-Rome (in which Bank is the largest commerin the state. Acquisition of Bank would increase cial banking organization with a 48.7 percent market Applicant's share of statewide commercial bank de- share), St. Lawrence (in which Bank ranks 4th with a posits to 1.5 percent and increase Applicant's rank to 13.9 percent commercial bank market share), Syra- 13th largest in the state. Thus, consummation of this cuse (in which Bank is 7th largest with a 1.9 percent proposal would not significantly increase the concen- market share) and Franklin3 (in which Bank is the tration of banking resources in New York State. smallest commercial bank, with a 2.4 percent market Bank operates 34 offices in 6 banking markets in share). The Board has examined the effects of the northern New York State. Applicant is represented in proposal on potential competition with respect to each 16 banking markets throughout the state. Upon con- of these four markets and finds that there would not be summation, Applicant would acquire 3 branches of any significant adverse effects upon potential competi- Bank located in 2 banking markets in which Applicant tion following consummation of this proposal. The already has branches, the Hamilton-Essex-Clinton Board has made this determination in view of all the banking market and the Rochester banking market.2 In facts of record, including the relative unattractiveness the Hamilton-Essex-Clinton banking market, Appli- of the Utica-Rome and St. Lawrence banking markets cant has 4 branches and total deposits of $71.4 million, for de novo entry, and the large number of potential representing 27.0 percent of the market's commercial entrants into each market that would remain after the bank deposits and ranks as the second largest commer- acquisition. Accordingly, the Board finds that the cial banking organization in the market. Bank has one competitive effects of this proposal do not warrant denial of the application. 1. All banking data, unless otherwise indicated, are as of December 3. The Utica-Rome banking market is approximated by Oneida 31, 1980, and reflect bank holding company formations and acquisi- County and parts of Herkimer and Madison Counties; the St. Lawtions approved as of September 30, 1981. rence banking market consists of all of St. Lawrence County; the 2. The Hamilton-Essex-Clinton banking market is approximated by Franklin banking market is approximated by Franklin County and the all of Clinton County and parts of Essex, Hamilton, and Herkimer cities of North Elba, St. Armand, and Wilmington in Essex County; Counties. The Rochester banking market is approximated by all of and the Syracuse banking market is approximated by Onondaga and Monroe and Wayne Counties and parts of Livingston, Orleans, and Oswego Counties and the cities of Cazenovia, De Ruyter, Fenner, Genessee Counties. All market data are as of June 30, 1980. Georgetown, Lenox, Nelson, and Sullivan in Madison County. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 Federal Reserve Bulletin • January 1982 The financial and managerial resources and future mined by the Board to be closely related to banking prospects of Applicant, its subsidiary banks, and Bank (12 C.F.R. § 225.4(a)(1), (5)). are regarded as satisfactory. The record indicates that Notice of the applications, affording opportunity for the banking needs of the communities in which Bank interested persons to submit comments and views on operates are being met; however, upon affiliation with the public interest factors, has been duly published. Applicant, Bank will be able to draw upon Applicant's The time for filing comments and views has expired, expertise in the areas of commercial lending, leasing, and the application and all comments received have data processing, and portfolio management. Thus, been considered in light of the public interest factors considerations relating to the convenience and needs set forth in section 4(c)(8) of the act (12 U.S.C. of the communities to be served are sufficient to § 1843(c)(8)). outweigh any adverse effects that may be associated Applicant, which controls one banking subsidiary with consummation of the proposal. Accordingly, the and holds assets of approximately $1.5 billion, has Board's judgment is that the proposed transaction applied to acquire Company (assets of $208,000, as of would be in the public interest and that the application June 30, 1981).1 In connection with the application, the should be approved. Secretary of the Board has considered whether the On the basis of the record, the application is ap- activity to be performed by Company can reasonably proved for the reasons summarized above. This trans- be expected to produce benefits to the public that action shall not be made before the thirtieth calendar outweigh possible adverse effects.2 On the basis of the day following the effective date of this Order, or later record of these applications and in the light of the than three months from the effective date of this factors contained in the act, the Secretary has deter- Order, unless such period is extended for good cause mined that the balance of the public interest factors by the Board or by the Federal Reserve Bank of New required to be considered under section 4(c)(8) is York, pursuant to delegated authority. favorable. On the basis of these considerations, the By order of the Board of Governors, effective applications are approved. This determination is sub- December 23, 1981. ject to the conditions set forth in section 225.4(c) of Regulation Y and to the authority of the Board to require such modification or termination of the activi- Voting for this action: Chairman Volcker and Governors Schultz, Wallich, Partee, Rice, and Gramley. Absent and not ties of a holding company or any of its subsidiaries as it voting: Governor Teeters. finds necessary to assure compliance with the provisions and purposes of the act and the Board's regula- (Signed) JAMES MCAFEE, tions and orders issued thereunder or to prevent [SEAL] Assistant Secretary of the Board. evasions thereof. The transaction shall not be consummated later than three months after the effective date of this Order, Orders Under Section 4 of Bank Holding unless such period is extended for good cause by the Company Act Board or by the Federal Reserve Bank of San Francisco acting pursuant to delegated authority. City National Corporation, By order of the Secretary, acting pursuant to dele- Beverly Hills, California gated authority for the Board of Governors, effective December 17, 1981. Order Approving Acquisition of Shares of Thompson Tuckman Andersen, Inc. (Signed) JAMES MCAFEE, [SEAL] Assistant Secretary of the Board. City National Corporation, Beverly Hills, California ("Applicant"), a bank holding company within the 1. All banking data are as of September 30, 1981, unless otherwise meaning of the Bank Holding Company Act, has noted. applied for approval under section 4(c)(8) of the act 2. Applicant states that at least two, and not more than four, other (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of the banking organizations will each purchase at least eight percent of the shares of Company. Three individuals who founded Company will Board's Regulation Y (12 C.F.R. § 225.4(b)(2)), to retain 60 percent of Company's voting shares, and those individuals, acquire 8 percent of the voting shares of Thompson rather than Applicant or other banking organizations, will be responsi- Tuckman Andersen, Inc., Palo Alto, California ble for managing the operations of Company. In view of the facts of this case, including the size of Company, the small share of voting ("Company"), a company that is engaged in the stock to be purchased by Applicant, and the continuing management business of furnishing investment and financial advice. of Company by individuals not affiliated with Applicant, the proposed Applicant also has applied to engage in the activity of investment by Applicant is regarded as the functional equivalent of a purchase of a service rather than as part of a joint venture among lending to Company. Such activities have been deter- nonaffiliated banking organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 63 The Hongkong and Shanghai Banking New York (consolidated assets of $17.97 billion);2 has Corporation, branches located in Illinois, New York, Oregon, and Hong Kong, B.C.C. Washington; and has two agencies in California. HSBC also operates an Edge Corporation in Houston, Order Approving Acquisition of Subsidiaries of The Texas. In addition, HSBC engages in nonbanking Royal Bank of Scotland Group Limited activities in the United States pursuant to section 4(c)(8), and holds interests in other companies doing The Hongkong and Shanghai Banking Corporation business in the United States pursuant to section ("HSBC"), Hong Kong, B.C.C., a bank holding com- 211.23(f) of Regulation K. pany within the meaning of the Bank Holding Compa- Royal Group is a holding company for two United ny Act, has applied for the Board's approval under Kingdom banks, Royal Bank of Scotland, Limited section 4(c)(8) of the act (12 U.S.C. § 1843(c)(8)) and ("Royal Bank"), Edinburgh, Scotland, and Williams section 225.4(b)(2) of the Board's Regulation Y & Glyn's Bank Limited, London, England, which rank (12 C.F.R. § 225.4(b)(2)) to indirectly acquire shares of as the thirteenth and fourteenth largest banks in the subsidiaries of The Royal Bank of Scotland Group, United Kingdom. Royal Bank, the 111th largest bank- Limited ("Royal Group"), Edinburgh, Scotland, that ing organization in the world (consolidated assets of engage in business in the United States. These subsid- $8.1 billion),3 operates a branch in New York and an iaries are James Talcott Factors, Inc., ("Talcott Fac- agency in San Francisco.4 Both HSBC and Royal tors"), and James Talcott Business Credit, Inc. ("Tal- Group have chosen New York as their home state, and cott Credit"), a wholly-owned subsidiary of Talcott consummation of the proposal would raise no issues Factors, both of New York, New York. Talcott Fac- under the Board's regulations concerning interstate tors engages in factoring and commercial financing banking operations (12 C.F.R. § 211.22). activities. Talcott Credit engages in commercial fi- Royal Group holds a 39.2 percent interest in Lloyd's nancing activities. Such activities have been deter- and Scottish Limited ("L&S"), Edinburgh, Scotland, mined by the Board to be closely related to banking (12 a holding company and financing vehicle for a number C.F.R. § 225.4(a)(1)). In addition, Royal Group has of foreign companies.5 L&S, through its subsidiaries, applied for the Board's approval under section owns all of the shares of Talcott Factors which, 211.23(f)(5) of Regulation K (12 C.F.R. § 211.23(f)(5)) through its offices in New York and Los Angeles, for its subsidiary, Royal Scot Energy Limited engages in the activities of factoring and making busi- ("RSE"), Edinburgh, Scotland, to invest in royalty ness loans secured by accounts receivable or invenand working interests in oil and gas leases in the tory of factored clients throughout the United States. United States. HSBC has applied to retain Royal Accounts receivable and advances equaled $144.5 Group's interest in RSE if that application is approved million as of September 30, 1980. Talcott Factors, with and RSE commences activities in the United States. factored receivables volume of $830 million in 1980, is Notice of the applications, affording opportunity for the 13th largest of 35 factoring companies in the U.S. interested persons to submit comments and views on and holds 2.9 percent of the total volume of factored the public interest factors, has been duly published (46 receivables. The factoring industry is characterized by markets that are regional or national in scope. Neither Federal Register 50611). The time for filing comments HSBC nor any of its subsidiaries engages in factoring and views has expired, and the Board has considered in the U.S. Thus, acquisition of Talcott Factors would the applications and all comments received in light of not eliminate any existing competition in the factoring the public interest factors set forth in section 4(c)(8) of industry. Moreover, it does not appear that consumthe act (12 U.S.C. § 1843(c)(8)) and the considerations mation of the transaction would eliminate any potenspecified in Regulation K. tial or probable future competition between Talcott HSBC is the largest banking organization in Hong Factors and HSBC or MMBI. In view of the high Kong and the 33rd largest in the world, with consolidated assets of $47.3 billion.1 HSBC engages in a barriers to entry into the factoring business in the broad range of banking and financial services throughout the world through an extensive network of offices and subsidiaries. In the United States, HSBC controls 2. As of June 30, 1981. Marine Midland Banks, Inc. ("MMBI"), Buffalo, 3. As of September 30, 1980. 4. Royal Bank has a minority interest in Finance for Industry Limited, London, England, which owns Triangle Valve Corporation, Inc., a distributor of valves throughout the United States. This investment is permissible under section 211.23(f)(5) of Regulation K. 5. L&S is jointly owned by Royal Group and by Lloyds Bank Limited, London, England. See the Board's Order of May 12,1980,66 1. Unless otherwise indicated, data are as of December 31, 1980. FEDERAL RESERVE BULLETIN 518 (1980). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Federal Reserve Bulletin • January 1982 U.S., due to the need for specialized personnel and under that section and that the application should be extensive customer contacts,6 it does not appear that approved.7,8 either HSBC or MMBI would enter the U.S. factoring Based on the foregoing and other facts of record, the business de novo. Board has determined that the balance of public inter- It would also appear that the acquisition of Talcott est factors it must consider under section 4(c)(8) of the Credit by HSBC would have no seriously adverse act is favorable. Accordingly, the application is hereby competitive effects. Talcott Credit, which in April approved. This determination is subject to the condi- 1981, commenced de novo general commercial financ- tions set forth in section 225.4(c) of Regulation Y and ing activities, including making or acquiring commer- to the Board's authority to require such modification cial loans secured by a borrower's accounts receiv- or termination of the activities of a holding company or able, inventory or other assets, and servicing such its subsidiaries as the Board finds necessary to assure loans for others, pursuant to section 4(c)(8), operates compliance with the provisions and purposes of the act from the same New York and Los Angeles locations as and the Board's regulations and orders issued under does Talcott Factors, and serves a national market. the Act or to prevent evasions of the act. Although certain nonbank subsidiaries of MMBI do The transaction shall not be made later than three engage in specific types of commercial financing pur- months after the effective date of this Order, unless suant to section 225.4(a)(1) of Regulation Y, Talcott such period is extended for good cause by the Board or Credit is involved primarily in making or acquiring by the Federal Reserve Bank of New York, pursuant commercial loans secured by accounts receivable and to delegated authority. inventory, while MMBI's nonbanking subsidiaries By order of the Board of Governors, effective principally make or acquire loans secured by mort- December 23, 1981. gages or real property. HSBC's direct branches in the U.S., its U.S. bank subsidiary, Marine Midland Bank, Voting for this action: Chairman Volcker and Governors N.A., as well as Royal Bank's New York branch, may Schultz, Wallich, Partee, Rice, and Gramley. Absent and not voting: Governor Teeters. also engage in similar types of commercial financing as part of their commercial banking activities. However, because of the size of the markets involved and (Signed) JAMES MCAFEE, [SEAL] Assistant Secretary of the Board. because of the competitive structure of the commercial financing industry, it does not appear that the acquisition of Talcott Factors and Talcott Credit Manufacturers Hanover Corporation, would result in the elimination of any significant New York, New York competition. Based on all the facts of record, the Board's judgment is that consummation of the propos- Order Approving Acquisition of Nonbanking Assets al would not have any significantly adverse effects on competition in any relevant area. Manufacturers Hanover Corporation, New York, The Board had previously determined that the bal- New York ("MHC"), a bank holding company within ance of public interest factors prescribed by section the meaning of the Bank Holding Company Act, has 4(c)(8) of the act favored approval of the acquisition of applied for the Board's approval under section 4(c)(8) these companies when they were acquired originally of the act (12 U.S.C. § 1843(c)(8)), to acquire through by Royal Group. Nothing in the record suggests that its subsidiary, Manufacturers Hanover Consumer HSBC's acquisition of Royal Group would alter that Services, Inc. ("MHCS"), 67 consumer finance ofbalance. There is no evidence in the record that fices and consumer finance receivables currently held consummation of the proposal would result in undue concentration of resources, decreased or unfair competition, conflicts of interests, unsound banking practices, or other adverse effects on the public interest. 7. The Board is aware that Royal Group is the object of competing acquisition bids by HSBC and by the Standard Chartered Bank Accordingly, the Board has determined that the bal- Limited, London, England, and that both transactions are currently ance of public interest factors it must consider under under review by the United Kingdom Monopolies and Mergers Commission. By its action today, the Board does not indicate a section 4(c)(8) favors approval of the application filed preference for one offer over the other. Rather, the Board is acting on the application before it solely with respect to the U.S. activities of Royal Group and in order that the proposed transaction, if consummated, may be made in accordance with U.S. law. 8. With respect to HSBC's application to retain Royal Group's interest in RSE if the Board approves RSE's application to invest in 6. See Industrial National Corporation, 58 FEDERAL RESERVE oil and gas leases, the Board will consider HSBC's application at the BULLETIN 171 (1972) and Lloyds Bank Limited, 66 FEDERAL RESERVE time it acts on the underlying application by Royal Group concerning BULLETIN 518 (1980). RSE's activities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 65 by American Investment Company ("AIC") located in AIC's offices. AIC has made a corporate decision to California, Oregon, and Washington. MHC has ap- withdraw from the consumer finance business on the plied to engage in the following activities at the offices west coast. MHCS' acquisition of AIC's offices will to be acquired: consumer finance, sales finance, home preserve a competitor in the market and MHCS will equity lending loan servicing, and acting as agent or provide extensive managerial and financial resources broker for the sale of credit life, accident and health to support the continued operation of AIC's existing insurance, and property and casualty insurance in offices. MHCS has stated that it will offer a greater connection with extensions of credit. These activities number and variety of consumer finance services by have been determined by the Board to be closely expanding the services of AIC's existing offices to related to banking or managing or controlling banks include larger and longer-term loans, revolving credit within the meaning of section 4(c)(8) of the act. loans, large ticket equipment lease financing, and (12 C.F.R. §§ 225.4(a)(1), (3), and (9)). small business and marine loans. Notice of the application, affording opportunity for There is no evidence in the record to indicate that interested persons to submit comments on the public consummation of the proposal would result in undue interest factors, has been duly published. The time for concentration of resources, decreased or unfair comfiling comments has expired, and the Board has con- petition, conflicts of interests, unsound banking pracsidered the application and all comments received in tices, or other adverse effects on the public interest. light of the public interest factors set forth in section Accordingly, the Board concludes that the balance of 4(c)(8) of the act. public interest factors that it must consider under Applicant, the third largest banking organization in section 4(c)(8) of the act favors approval of the appli- New York, with consolidated assets of approximately cation, and that the application should be approved. $59.7 billion,1 controls four bank subsidiaries with This determination is subject to the conditions set $52.4 billion2 in total assets. Applicant also engages in forth in section 225.4(c) of Regulation Y and to the various permissible nonbanking activities. Board's authority to make examinations of bank hold- In order to approve the subject application, the ing companies and their subsidiaries, and to require Board must find that Applicant's performance of the such modification or termination of the activities of a proposed activities through MHCS "can reasonably bank holding company or any of its subsidiaries as the be expected to produce benefits to the public, such as Board finds necessary to assure compliance with the greater convenience, increased competition, or gains provisions and purposes of the Act and the Board's in efficiency, that outweigh possible adverse effects, Orders and regulations issued thereunder, or to presuch as undue concentration of resources, decreased vent evasion thereof. The transaction shall be made or unfair competition, conflicts of interests, or un- not later than three months after the effective date of sound banking practices." Some existing competition this Order, unless such period is extended for good would be eliminated as a result of consummation of the cause by the Board or by the Federal Reserve Bank of proposal in the Los Angeles and San Diego banking New York, pursuant to delegated authority. markets3 where MHCS and AIC operate consumer By order of the Board of Governors, effective finance offices. The combined market shares resulting December 22, 1981. from the acquisition, however, would be 1.72 percent in the Los Angeles market and 2.13 percent in the San Voting for this action: Vice Chairman Schultz and Governors Wallich, Partee, Teeters, Rice, and Gramley. Absent Diego market. In addition, given the large number of and not voting: Chairman Volcker. alternative participants providing similar consumer credit services and the minimal share of AIC and (Signed) JAMES MCAFEE, MHCS in the relevant markets, no appreciable amount [SEAL] Assistant Secretary of the Board. of potential or probable future competition would be eliminated by the proposal. Accordingly, the Board does not regard the proposed acquisition as raising any significant competitive issues. Orders Under Bank Merger Act Consummation of the proposal will provide public benefits in the form of increased consumer finance AmeriTrust Company, services in the west coast markets currently served by Cleveland, Ohio Order Approving Merger of Banks 1. Consolidated assets data are as of September 30, 1981. 2. Bank asset data are as of December 31, 1980. AmeriTrust Company, Cleveland, Ohio ("Ameri- 3. These markets are approximated by the Los Angeles RMA and the San Diego RMA, respectively. Trust"), has applied for the Board's approval pursuant Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Federal Reserve Bulletin • January 1982 to section 1828(c) of the Bank Merger Act (12 U.S.C. In addition to interposing numerous objections to § 1828 (c)), to merge with AmeriTrust Company of the proposed transactions based on AmeriTrust's Northeastern Ohio, N.A., Ashtabula, Ohio; Ameri- CRA record, in accordance with the Board's Rules of Trust Company of Stark County, Canton, Ohio, and Procedure, (12 C.F.R. Part 262), Protestant requested AmeriTrust Company of Jefferson County, Steuben- that the Board convene a public meeting to elicit ville, Ohio. Incident to the proposed merger, the information and to clarify factual issues relating to existing offices of Northeastern Bank, Stark County AmeriTrust's CRA record. In making its public meet- Bank, and Jefferson County Bank would become ing request, Protestant submitted considerable data branch offices of AmeriTrust. AmeriTrust, as well as which, in its view, demonstrated AmeriTrust's consisthe other banks involved, are wholly-owned subsidiar- tent disregard for serving the credit needs of low- and ies of AmeriTrust Corporation, Cleveland, Ohio moderate-income neighborhoods. In Protestant's ("Corporation"), a registered bank holding company. view, a public meeting would permit representatives of Notice of these applications, affording interested the various community organizations to present oral persons an opportunity to submit comments and testimony, and would allow these representatives to views, has been given in accordance with the Bank question AmeriTrust, thereby developing a more com- Merger Act and the Board's Rules of Procedure plete record on the issues raised by Protestant. (12 C.F.R. § 262.3(b)). As required by the Bank Merg- Based on Protestant's submissions, as well as er Act, reports of the competitive effects of the merg- AmeriTrust's response, pursuant to the Board's Rules ers were requested from the United States Attorney of Procedure, (12 C.F.R. § 262.25), on June 30, 1981, a General, the Comptroller of the Currency, and the public meeting was convened at the Federal Reserve Federal Deposit Insurance Corporation. Comments Bank of Cleveland ("Reserve Bank"). Representawere received from Neighborhood People in Action tives of AmeriTrust and of Protestant, as well as ("NPIA"), a coalition of Cleveland community orga- Reserve Bank staff, participated in the meeting.2 At nizations, including Buckeye-Woodland Community the meeting, Protestant's representatives presented Congress, Citizens to Bring Broadway Back, Union their views concerning AmeriTrust's record of meet- Miles Community Coalition, and St. Clair Superior ing the credit needs of its community, particularly the Coalition (hereinafter referred to as "Protestant"). Buckeye-Woodland, Broadway, St. Clair Superior and Protestant's comments on these applications relate to Union Miles neighborhoods, followed by a statement AmeriTrust's record under the Community Reinvest- on behalf of AmeriTrust by its representative. Both ment Act of 1977, (12 U.S.C. §§ 2901-05 ("CRA")). parties were then given the opportunity to respond to The Board has considered these applications and all the other's opening statement, and the meeting concomments received in light of the factors set forth in cluded with an opportunity for the parties to question the Bank Merger Act, the CRA, and the Board's one another directly. An official transcript of the Regulation BB, (12 C.F.R. § 228). meeting was recorded and has been made a part of the Corporation, the second largest banking organiza- record of these applications. tion in Ohio, controls four banking subsidiaries, with At the conclusion of the June 30 public meeting, aggregate deposits of about $3.6 billion, representing Protestant asserted that the record revealed factual 8.5 percent of total deposits in commercial banks in disputes between the parties, and requested that the the state.1 AmeriTrust, the largest banking organiza- Board order a formal hearing on these applications to tion in Cleveland with deposits of $3.5 billion, is resolve these differences. Although the Board is not Corporation's leading banking subsidiary. The merger required to hold a formal hearing on an application of Northeastern Bank, Stark County Bank, and Jeffer- filed pursuant to the Bank Merger Act, the Board son County Bank into AmeriTrust represents a corpo- could, in its discretion, order a formal or informal rate reorganization and would not affect the concentra- proceeding if it deemed it appropriate. In general, the tion of banking resources or existing or potential Board will hold a hearing if it determines there are competition in any relevant area. Thus, the Board material questions of fact in dispute that can only be concludes that competitive considerations are consis- resolved by a trial-type proceeding. The Board has tent with approval of these applications. The financial scrutinized the record of these applications, and has and managerial resources of Corporation, AmeriTrust, determined there are no material factual differences in Northeastern Bank, Stark County Bank, and Jefferson the record that would warrant a hearing on these County Bank are generally satisfactory. Therefore, the applications. Notwithstanding Protestant's assertions, Board regards banking factors as consistent with approval of these applications. 2. Although the meeting was open to the public, it was determined that only representatives of those constituent organizations of Protestant, who had filed timely objections to these applications, would be 1. All banking data are as of March 31, 1981. permitted to participate in the meeting. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 67 it appears that many of the alleged factual discrepan- land. Specifically, Protestant alleges that AmeriTrust cies are in reality based on the interpretation and has made a corporate decision to withdraw from the significance to be accorded certain facts, as well as Cleveland residential mortgage market; that Ameridiffering views as to what constitutes the relevant facts Trust consistently has failed to implement an adequate in assessing the various allegations Protestant has program to ascertain the credit needs of the residents raised. Inasmuch as the Board is charged by statute and businesses in low- and moderate-income areas of with making these judgments, and in view of the fact its CRA community, particularly Buckeye-Woodland, that all parties have been afforded ample opportunity Union-Miles, Saint Clair Superior, and Broadway; to present their arguments in written and in oral form, that AmeriTrust engages in practices that deny access and to comment on one another's submissions, the to credit and discourage applications from credit- Board has determined that a formal hearing would not worthy residents of low- and moderate-income and be useful. Accordingly, Protestant's request for a predominately minority communities; that AmeriTrust formal hearing is hereby denied, and the Board has consistently has failed to market its credit and creditproceeded to consider these applications, as well as related services in NPIA neighborhoods; that Amerithe objections raised by Protestant, on the merits. Trust has refused to participate in locally-sponsored The Board has considered the convenience and neighborhood reinvestment and community developneeds of the communities to be served. As a result of ment programs in low- and moderate-income neighconsummation, the surviving institution will have a borhoods; that AmeriTrust has failed to comply with higher lending limit allowing AmeriTrust to better the spirit and the letter of the commitments and serve the credit needs of its community. In addition, condition contained in the Board's Order of February AmeriTrust will commence offering a special braille 20, 1980;3 and that AmeriTrust does not participate in checking account and will introduce a level-payment government-insured small business loan programs. program for small businesses. In considering the con- Protestant has submitted information regarding each venience and needs of the communities, the Board has of these allegations, including information presented at considered the CRA records of Corporation's banking the June 30 public meeting, and AmeriTrust has resubsidiaries. The CRA requires the Board to assess sponded to Protestant's submissions. The Board has the record of each of Corporation's banking subsidiar- examined the submissions of Protestant and Ameriies in meeting the credit needs of its entire community, Trust regarding the issues raised by Protestant. The including low- and moderate-income neighborhoods, Board has also considered conclusions resulting from consistent with their safe and sound operation, and to a recent examination of AmeriTrust that included an take those records into account in its evaluation of assessment of AmeriTrust's record of performance these applications. With regard to AmeriTrust's com- under the CRA. Accordingly, on the basis of its review pliance with the procedural requirements of the of the entire record, the Board makes the following Board's Regulation BB, (12 C.F.R. § 228), from the findings. record it appears that AmeriTrust's delineation of its In support of its allegations concerning the mortgage community is reasonable and in a manner permitted by and home improvement lending record of AmeriTrust, Regulation BB. Moreover, AmeriTrust has made its Protestant has submitted its own analysis of Ameri- CRA statement available, public notices are displayed Trust's lending record in NPIA and other low- and at its branch offices, and AmeriTrust's Board of Direc- moderate-income areas.4 Specifically, Protestant comtors is familiar with the provisions of the CRA. Ac- pared AmeriTrust's mortgage lending record to those cordingly, AmeriTrust appears to be in compliance of other commercial banks in Cleveland, and found with the technical requirements of the Board's Regula- that while other Cleveland banks had increased their tion BB, and Protestant has not challenged this aspect mortgage lending activity in the last few years, Ameriof AmeriTrust's CRA record. In addition, the Board Trust had reduced the percentage of mortgage loans in has reviewed the CRA records of Corporation's bank- its portfolio. On the basis of this comparison, Protesing subsidiaries other than AmeriTrust, and finds that tant claims that AmeriTrust has made a corporate they are consistent with approval. In its consideration of AmeriTrust's CRA record, the Board has examined Protestant's allegations concerning AmeriTrust's record of performance with re- 3. AmeriTrust Corporation, 66 FEDERAL RESERVE BULLETIN 238 spect to CRA factors. In this regard Protestant gener- (1980). ("1980 Order"). 4. The Board has also reviewed Protestant's allegation that in ally charges that AmeriTrust's lending record certain NPIA neighborhoods AmeriTrust grants consumer installment demonstrates a consistent disregard for serving the loans rather than mortgage loans for the purchase of residential real credit needs of low- and moderate-income and pre- estate and that this practice discriminates against low- and moderateincome areas. AmeriTrust does not dispute that it engages in this dominantly minority areas within the city of Cleve- practice, but argues the result is a reduced overall cost to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Federal Reserve Bulletin • January 1982 decision to withdraw from the mortgage market. In on a review of the entire record and in light of current addition, Protestant analyzed AmeriTrust's small loan conditions, the Board believes that AmeriTrust's home improvement program by comparing Ameri- mortgage lending record is adequate and believes that Trust's share of the deposits from NPIA neighbor- AmeriTrust serves all areas of its community. hoods to the volume of small loans AmeriTrust ex- In support of its allegations of discriminatory credit tended in these neighborhoods, and concluded that practices by AmeriTrust, Protestant has submitted 13 AmeriTrust has extended fewer home improvement affidavits that Protestant concludes indicate preloans than are warranted by AmeriTrust's share of screening, failure to send proper adverse action nodeposits. tices, or otherwise show that AmeriTrust discourages The Board notes that it considered AmeriTrust's applications for credit. Protestant asserts also that record of residential lending in 1979 in connection with AmeriTrust's requirement that a borrower maintain a a previous application, and found it to be generally deposit account is discriminatory. Finally, Protestant satisfactory. Although Protestant is correct in its as- asserts that AmeriTrust has failed to properly keep the sertion that AmeriTrust has reduced its residential log of all credit inquiries and applications that is mortgage lending somewhat since 1979, the reduction required by the Board's 1980 Order addressing conappears to be warranted in light of market conditions cerns about AmeriTrust's credit practices. in recent years,5 and the Board notes that Ameri- At the outset the Board notes that several of these Trust's residential mortgage loans continue to repre- affidavits pertain to incidents that occurred prior to the sent a significant percentage of its loan portfolio in all effective date of the Board's Regulation B relating to areas of its community. Moreover, any reduction by Equal Credit Opportunity, (12 C.F.R. Part 202). With AmeriTrust of its mortgage lending has not been at the respect to the remaining affidavits, the Reserve Bank expense of the city of Cleveland. In fact, the record conducted a thorough review of AmeriTrust's records reveals that AmeriTrust has increased the proportion- of each incident. Based on this review it appears that ate share of mortgage credit it has extended to the city since the effective date of Regulation B, adverse action from 16 percent in 1977 to 26 percent in 1980. Finally, notices were properly sent to all affiants. Moreover, within the past year AmeriTrust has introduced its review of the records relating to the events described AmeriHome Resale Financing Program, whereby in each affidavit indicates that in each case Ameri- AmeriTrust will offer a reduced rate mortgage to the Trust's action was based on the bank's standard buyer of a home with an AmeriTrust mortgage origi- lending practices and did not involve discriminatory nated before 1979; approximately 400 homes in NPIA action.6 With respect to Protestant's allegation that neighborhoods would be eligible for this program. AmeriTrust requires borrowers to be deposit custom- With respect to home improvement loans, the Board ers, the record indicates that AmeriTrust does require an installment loan customer to maintain a deposit notes that AmeriTrust's market share in all areas has relationship before the bank will disperse loan funds, remained constant since 1977 and that any reduction in but does not require an installment loan applicant to such loans has occurred equally in all areas of the city. have an account relationship with the bank in order to Moreover, when the demand for home improvement apply for and obtain credit.7 However, in view of the loans is considered, from the record it appears that small amount of the minimum deposit generally re- AmeriTrust has accommodated somewhat more of the quired, this requirement does not appear onerous and demand for such loans in Cleveland's low- and moderthere is no evidence it has been used to discriminate ate-income areas than in other areas of the city. Based against low- and moderate-income neighborhoods.8 customer. The record indicates that this practice does, in fact, benefit the loan customer in those instances in which the amount of mortgage credit requested is low, since it eliminates the appraisal fee, title 6. In addition, it appears that the complaints of some affiants did examination, location survey as well as other costs associated with a not involve any denial of credit; for example, one individual wanted to mortgage. The Board notes that such installment loans secured by a reopen a closed savings account. It is AmeriTrust's policy not to first lien on residential property should be reported on AmeriTrust's reopen a closed account but to issue a new account. Home Mortgage Disclosure Act ("HMDA") statement pursuant to 7. The Board notes that during periods of tight credit many Regulation C (12 C.F.R. Part 203), and that since 1980, AmeriTrust's financial institutions institute a "customer only" policy. AmeriTrust HMDA statement has included such loans. From the record it appears had such a policy in effect from February-July 1979 for mortgage loan that part of the confusion over this practice may be attributed to the applicants. AmeriTrust initiated, and continues to require, a deposit failure of AmeriTrust personnel to communicate effectively to the relationship in connection with its installment loan and credit card customer the basis for the decision to offer an installment loan rather operations. At present, it appears that the minimum amount required than a mortgage loan. to be kept in such an account is $1 to $5. 5. AmeriTrust has indicated that the adjustment in its mortgage 8. In accordance with its supervisory responsibilities, the Board portfolio is based on its need, consistent with safe and sound banking, has reviewed the log AmeriTrust was required to maintain and has to increase the interest rate sensitivity of its loan portfolio in light of found no evidence that it was not maintained in accordance with the increased funding costs and volatile interest rates. Board's 1980 Order. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 69 Protestant alleges that AmeriTrust's efforts to ascer- Protestant reveals that Protestant overstated the pertain the credit needs of its entire community are centage of respondents who could not recall being nonsystematic and that its efforts to communicate with contacted by AmeriTrust. The Board further notes its community's residents are inadequate. In support that the incidents cited by Protestant in which Ameriof the first allegation, Protestant points out that most Trust would not meet with community groups ocof the calls and contacts made pursuant to Ameri- curred in 1979, and that since that time, AmeriTrust Trust's branch officer call program have been to has changed its policy and has met with numerous businesses outside NPIA neighborhoods.9 Moreover, community groups, including those from NPIA neighbased on its own telephone survey, Protestant asserts borhoods. Finally, the Board notes that although the that a high proportion of these calls and contacts turnover rate of branch managers in NPIA areas is involved businesses that already maintained a busi- somewhat higher than at other offices, all AmeriTrust ness or personal account with AmeriTrust. In addi- offices appear to have a significant turnover rate, and tion, Protestant has submitted five affidavits from that this alone, does not indicate a lack of service to NPIA area residents in which the affiant stated he or these neighborhoods. she was unaware of a systematic attempt by Ameri- With regard to its allegation that AmeriTrust has not Trust to ascertain credit needs of his or her communi- marketed its credit services in NPIA neighborhoods or ty. Protestant also points to two occasions on which in other low- and moderate-income neighborhoods in AmeriTrust declined to attend public meetings in its community, Protestant has submitted statements NPIA neighborhoods. Finally, Protestant asserts that from NPIA groups asserting that AmeriTrust has done the high turnover rate at two of the branch offices in little or no advertising in their community newsletters, NPIA neighborhoods indicates that these offices are meeting brochures or local newspapers. Specifically, used as training grounds for AmeriTrust's branch Protestant complains that AmeriTrust does not adverpersonnel, and reflects AmeriTrust's disregard for tise the availability of small home improvement loans, establishing stable relationships with those communi- private mortgage insured mortgages, or FHA-guaranties. AmeriTrust points out that, in addition to its call teed loans.10 In response, AmeriTrust states that it program, in April of this year it instituted a Branch evaluates and develops programs to serve the needs of Manager Community Involvement Plan under which its community on a continuing basis, and that it each branch manager is required to develop a plan for markets these services through various media includcommunity relations; to ascertain credit needs and ing television, radio, and newspapers, which circulate service promotion; and to outline specific programs to throughout its entire community, as well as local achieve these goals. Moreover, AmeriTrust indicates neighborhood and foreign language publications orithat it has met with NPIA groups on numerous occa- ented toward particular groups. AmeriTrust has subsions during the past year and that as a result of these mitted copies of representative advertisements it has meetings AmeriTrust has agreed to participate in sev- placed in large newspapers and local area newsletters. eral community development projects. In addition, AmeriTrust states that it has met with The Board has reviewed the record relating to realtors at a number of receptions in order to promote AmeriTrust's efforts to ascertain the credit needs of all its AmeriHome Resale Financing Program. Further, its community's residents as well as its efforts to AmeriTrust's " 'How to' Guide to Consumer Credit" communicate with its community. For example, while ("Guide") and related promotional material are exam- Protestant alleges that only one call to a business in ples of its efforts to explain the concept of consumer Union Miles was made from the Broadway-Harvard credit to its community. The Guide indicates specific office in the Union Miles neighborhood, an analysis of kinds of consumer credit AmeriTrust makes available, the calls made from this office on the basis of geocod- the factors AmeriTrust considers in evaluating a morting reveals that 12 out of 75, or 16 percent, of these gage loan application, and a personal financial workcalls were to businesses in Union Miles. Moreover, sheet. The Board has carefully considered Amerithe Board notes that a number of AmeriTrust's offices Trust's efforts to inform its community about its credit including the Union Miles office mentioned are located services because this aspect of AmeriTrust's CRA on the fringe of NPIA neighborhoods, and that the record has been one of concern in the past. Initially, marketing, and, therefore, contact calls of these offices would include but not be limited to NPIA neighborhoods. In addition, review of the data provided by 10. Protestant's allegation that AmeriTrust does not market or promote government-insured lending programs including FHA, VA, or PMI (Private Mortgage Insurance) financing has not been disputed by AmeriTrust, although the bank does claim to offer these services. 9. AmeriTrust has an officer call program whereby a designated While the Board questions AmeriTrust's commitment to offer these officer is required to call and/or contact businesses within his or her services, the Board notes that AmeriTrust does provide SBA financarea to market credit services. ing and participates in the SBA bank certification lending program. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Federal Reserve Bulletin • January 1982 the Board notes that a bank's decision to emphasize have a clear lending policy, and has not made systemcertain services and not others is a matter best left to atic efforts to inform the public of these commitments. management, because it reflects managements assess- In support of these contentions, Protestant submitted ment of current market conditions. While the record the results of its survey of seven of the nine credit indicates that AmeriTrust's decision to curtail adver- counseling organizations listed by AmeriTrust in its tising of certain credit services may be based primarily quarterly reports12 and submitted letters from five of on economic conditions, and is not directed to any the listed agencies. Moreover, Protestant claims particular segment of AmeriTrust's community, the AmeriTrust has eliminated its in-house credit counsel- Board is of the view that AmeriTrust could make ing program. certain of its services known to its community in a The Board views with particular concern Protesmore effective manner. tant's allegations that AmeriTrust has not complied With respect to AmeriTrust's participation in com- fully with commitments it made to the Board, because munity investment and development activities, the these undertakings were made to the Board in light of Board notes that Protestant and AmeriTrust appear to serious deficiencies uncovered in AmeriTrust's record have different views on how to best rehabilitate inner- at that time. Accordingly, the Board has carefully city neighborhoods, and that much of their disagree- examined AmeriTrust's record in this regard. The ment concerning the degree of AmeriTrust's participa- record indicates that AmeriTrust significantly revised tion in local development projects may result from its training program for lending personnel, and that all their different philosophies in this regard. From the branch managers and assistant managers at Amerirecord it appears that AmeriTrust evidences a willing- Trust's offices in Cuyahoga County have completed ness to consider proposals, and has agreed to partici- the program. Moreover, AmeriTrust has since agreed pate in several development programs, including those to include loan interviewers in this program. To fulfill of NPIA neighborhoods. As evidence of bad faith, its credit counseling commitment, AmeriTrust has Protestant notes that AmeriTrust does not respond to prepared a list of credit-counseling services and has community initiatives as quickly as other financial also included general housing assistance services. In institutions. However, there is no indication that addition, the Guide provides some instruction on how AmeriTrust has treated proposals by NPIA groups to assess one's own credit capacity. Further, Ameridifferently from other investment decisions,11 and, the Trust has revised its appraisal standards for residential fact that AmeriTrust may take a different approach is mortgage credit and has incorporated these revisions not, by itself, evidence of bad faith or discrimination. into its updated Guide. In this regard, the Board notes Moreover, AmeriTrust has made financial commit- that AmeriTrust uses the appraisal standards devised ments to certain development projects in its communi- by the Federal National Mortgage Association and the ty, including offering interim financing and credit for a Federal Home Loan Mortgage Association. Based on home rehabilitation project; offering appraisal time to a review of the entire record in this matter, the Board individuals buying rehabilitated homes from the Union is persuaded that AmeriTrust has fulfilled its prior Miles Development Corporation; donating $2,500 to commitments to the Board, has corrected deficiencies the Union Miles Development Corporation; and par- in its earlier record, and has maintained the log in ticipating in the Broadway Home Weatherization Proj- accordance with the Board's instructions. ect. Based on the foregoing and other facts of record, the Protestant also alleges that AmeriTrust has failed to Board concludes that AmeriTrust's overall record of comply with the commitments set forth in the Board's performance under the CRA is satisfactory. Nonethe- 1980 Order. Specifically, Protestant asserts that less, the Board finds the continuing strained relations AmeriTrust has not significantly improved its training between AmeriTrust and Protestant a matter of conprogram for lending personnel, has not implemented a cern, and believes they reflect to some degree a lack of viable credit counseling program, has not published effective communication on the part of both parties. meaningful real estate appraisal standards, does not Thus, in approving these applications, the Board has relied on AmeriTrust's commitment to establish a Community Advisory Council for the Cleveland area, and the Board is hopeful that such a council will help promote more meaningful dialogue between Ameri- 11. Protestant asserts that AmeriTrust's failure to participate in the Buckeye-Woodland Development Corporation reflects the lack of a Trust and Protestant. With the commitment, and in sincere commitment by AmeriTrust to address development needs. In view of all the facts of record, the Board's judgment is response, AmeriTrust states that it does not want to geographically limit a development corporation's activities to one neighborhood and, in addition, questions the amount of the investment being sought. In any event, the Board is unable to find any evidence of discriminatory 12. Pursuant to the Board's 1980 Order, AmeriTrust was required intent or bad faith in AmeriTrust's consideration of the proposal. to report quarterly on its progress in implementing its commitments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 71 that convenience and needs considerations associated good cause by the Board or the Federal Reserve Bank with these proposals are consistent with approval, and of Cleveland acting pursuant to delegated authority. that approval of the applications would be in the public By order of the Board of Governors, effective interest. December 1, 1981. On the basis of the entire record, these applications are approved for the reasons summarized above. Voting for this action: Chairman Volcker and Governors These transactions shall not be made before the thirti- Schultz, Wallich, Partee, Teeters, Rice, and Gramley. eth calendar day following the effective date of this Order nor later than three months after the effective (Signed) JAMES MCAFEE, date of this Order, unless such period is extended for [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 December 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 City Bancorporation of Texas, Inc. First City Bank—Addison, December 17, 1981 Houston, Texas Addison, Texas Mercantile Bankshares Corporation, The Peoples Bank of Maryland, December 29, 1981 Baltimore, Maryland Denton, Maryland Mercantile Texas Corporation, The Citizens National Bank of Greenville, December 3, 1981 Dallas, Texas Greenville, Texas Pee Dee Bancshares, Inc., Pee Dee State Bank, December 31, 1981 Timmonsville, South Carolina Timmonsville, South Carolina 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 Allied Banschares, Inc., American Bancorp, Inc. Dallas November 25, 1981 Houston, Texas San Antonio, Texas The American Bank, San Antonio, Texas First Continental Bank, Dallas November 24, 1981 Dallas, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Bulletin • January 1982 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date First National Bank of Dallas November 24, 1981 Halletts ville, Hallettsville, Texas Live Oak State Bank, Dallas November 24, 1981 Fulton, Texas Marble Falls Financial Corpora- Dallas November 25, 1981 tion, Marble Falls, Texas The Bank of Marble Falls, Marble Falls, Texas Metro Bank of Dallas, Dallas November 24, 1981 Dallas, Texas The Peoples State Bank, Dallas November 24, 1981 Marshall, Texas Vidor Bancshares, Inc., Dallas November 30, 1981 Vidor, Texas Vidor State Bank, Vidor, Texas Bank of Poplar Bluff Bank of Poplar Bluff, St. Louis November 30, 1981 Bancshares, Inc., Poplar Bluff, Missouri Poplar Bluff, Missouri Bank South Corporation, Cobb Bank and Trust Company, Atlanta December 30, 1981 Atlanta, Georgia Smyrna, Georgia Biggsville Financial Corporation, First State Bank of Biggsville, Chicago November 27, 1981 Biggsville, Illinois Biggsville, Illinois Big Lake Bancshares, Inc., Citizens State Bank of Big Lake, Minneapolis December 30, 1981 Big Lake, Minnesota Big Lake, Minnesota Boulevard Bancorp, Inc., National Boulevard Bank of Chicago November 27, 1981 Chicago, Illinois Chicago, Chicago, Illinois Brinkley Bancshares, Inc., Bank of Brinkley, St. Louis November 27, 1981 Brinkley, Arkansas Brinkley, Arkansas Buhl Bancorporation, Inc., First National Bank of Buhl, Minneapolis November 30, 1981 Buhl, Minnesota Buhl, Minnesota CBC, Inc., The Citizens Bank of Clovis, Dallas December 31, 1981 Clovis, New Mexico Clovis, New Mexico Central Illinois Banc Shares, Capitol Bank & Trust Company Chicago November 27, 1981 Inc., of Springfield, Springfield, Illinois Springfield, Illinois Citizens Bancorporation of Citizens State Bank of Milaca- Minneapolis November 27, 1981 Milaca, Inc., Ogilvie, Ogilvie, Minnesota Milaca, Minnesota Community Bancshares, Inc., Community State Bank, Atlanta December 28, 1981 Independence, Louisiana Independence, Louisiana Community Financial Services, Bank of Bolivar, St. Louis November 30, 1981 Inc., Bolivar, Tennessee Bolivar, Tennessee F&M Holding Company, Inc., Farmers & Merchants Bank, Atlanta December 28, 1981 Foley, Alabama Foley, Alabama Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 73 Section 3—Continued Reserve Effective Applicant BBaannkk((ss)) Bank date F&M National Corporation, The Suburban Bank, Richmond December 29, 1981 Winchester, Virginia Richmond, Virginia Fifth Third Bancorp, The First-Mason Bank, Cleveland December 28, 1981 Cincinnati, Ohio Mason, Ohio First Holmes Corporation, First National Bank of Holmes St. Louis November 23, 1981 Lexington, Mississippi County, Lexington, Mississippi First Jersey National Corp., The Washington Bank, New York December 29, 1981 Jersey City, New Jersey Turnersville, New Jersey First Railroad and Banking Com- First National Bank in Newman, Atlanta November 27, 1981 pany of Georgia, Newman, Georgia Augusta, Georgia First Valley National Corp., First National Bank, St. Louis November 25, 1981 Clarksdale, Mississippi Clarksdale, Mississippi Flagship Banks, Inc., Century Bank of Gainesville, Atlanta December 30, 1981 Miami, Florida Gainesville, Florida Germantown Bancshares, Inc., The Bank of Germantown, St. Louis November 30, 1981 Germantown, Tennessee Germantown, Tennessee Maple Lake Bancshares, Inc., Security State Bank of Maple Minneapolis November 30, 1981 Maple Lake, Minnesota Lake, Maple Lake, Minnesota Marlin Financial Corporation, Marlin National Bank, Dallas November 27, 1981 Marlin, Texas Marlin, Texas The Maybaco Company, Equitable Bancorporation, Richmond November 23, 1981 Baltimore, Maryland Baltimore, Maryland Mechanicsville Bancshares, Inc., The Mechanicsville Trust and Chicago November 23, 1981 Mechanicsville, Iowa Savings Bank, Mechanicsville, Iowa Merchants Bancorporation, Merchants Bank, Atlanta December 28, 1981 Hanceville, Alabama Hanceville, Alabama Mt. Zion Bancorp., Inc., Mt. Zion State Bank, Chicago November 25, 1981 Mount Zion, Illinois Mount Zion, Illinois Ogle County Bancshares, Inc., The First National Bank & Trust Chicago November 27, 1981 Rochelle, Illinois Company of Rochelle, Rochelle, Illinois Republic of Texas Corporation, First National Bank, Dallas November 30, 1981 Dallas, Texas Sherman, Texas North State Bank of Amarillo, Amarillo, Texas Schreiner Bancshares, Inc., Ingram State Bank, Dallas December 28, 1981 Kerrville, Texas Ingram, Texas First National Bank, Boerne, Texas Security State Investments, Inc., Security State Bank of Houston, Minneapolis November 27, 1981 Houston, Minnesota Houston, Minnesota Tri-State Bancorporation, Inc., Tri-State Bank and Trust San Francisco November 20, 1981 Montpelier, Idaho Company, Montpelier, Idaho Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Federal Reserve Bulletin • January 1982 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date Tri-States Bankshares, Inc., Bank of Dade, Atlanta December 29, 1981 Trenton, Georgia Trenton, Georgia Tri-State Financial Bancorp, First National Bank Northwest Cleveland December 29, 1981 Bryan, Ohio Ohio, Bryan, Ohio Sections 3 and 4 Nonbanking Reserve Effective Applicant Bank(s) company Bank date (or activity) Tucker Bros., Inc., First State Bank of Win- to continue to engage in Atlanta December 30, 1981 Jacksonville, Florida ter Garden, mortgage banking ac- Winter Garden, tivities Florida ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date The Connecticut Bank and Trust The Southington Bank and Trust Boston December 31, 1981 Company, Company, Hartford, Connecticut Southington, Connecticut F&M National Corporation, Big Apple Bank, Richmond December 29, 1981 Winchester, Virginia Richmond, Virginia The FTB Fourth Bank, The First-Mason Bank, Cleveland December 28, 1981 Mason, Ohio Mason, Ohio PENDING CASES INVOLVING THE BOARD OF GOVERNORS* *This list of pending cases does not include suits The National Bank of Davis, et al., v. Charles E. against the Federal Reserve Banks in which the Board Lord, et al., filed July 1981. U.S.C. A. for the Fourth of Governors is not named a party. Circuit. Bank Stationers Association, Inc., et. al., v. Board of Option Advisory Service, Inc. v. Board of Governors, Governors, filed July 1981, U.S.D.C. for the Northfiled December 1981, U.S.C.A. for the Second ern District of Georgia. Circuit. Public Interest Bounty Hunters v. Board of Gover- Option Advisory Service, Inc. v. Board of Governors, nors, et al., filed June 1981, U.S.D.C. for the filed September 1981, U.S.C.A. for the Second Northern District of Georgia. Circuit. Edwin F. Gordon v. John Heimann, et al., filed May American Bankers Association v. Federal Home Loan 1981, U.S.C.A. for the Fifth Circuit. Bank Board, et al., filed August 1981, U.S.D.C. for Louis J. Roussell v. Board of Governors, filed May the District of Columbia. 1981, U.S.C.A. for the District of Columbia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 75 Wilshire Oil Company of Texas v. Board of Gover- A. G. Becker, Inc. v. Board of Governors, et al., filed nors, et al, filed April 1981, U.S.C.A. for the Third August 1980, U.S.D.C. for the District of Columbia. Circuit. Otero Savings and Loan Association v. Board of People of the State of Arkansas v. Board of Gover- Governors, filed August 1980, U.S.D.C. for the nors, et al., filed March 1981, U.S.C.A. for the District of Colorado. Western District of Arkansas. Edwin F. Gordon v. Board of Governors, et al., filed First Bank & Trust Company v. Board of Governors, August 1980, U.S.C.A. for the Fifth Circuit. filed February 1981, U.S.D.C. for the Eastern Dis- U.S. League of Savings Associations v. Depository trict of Kentucky. Institutions Deregulation Committee, et al., filed Ellis E. St. Rose & James H. Sibbet v. Board of June 1980, U.S.D.C. for the District of Columbia. Governors, filed February 1981, U.S.D.C. for the Berkovitz, et al. v. Government of Iran, et al., filed District of Columbia. June 1980, U.S.D.C. for the Northern District of Option Advisory Service, Inc. v. Board of Governors, California. et al., filed February 1981, U.S.C.A. for the Second Mercantile Texas Corporation v. Board of Governors, Circuit. filed May 1980, U.S.C.A. for the Fifth Circuit. 9 to 5 Organization for Women Office Workers v. Corbin, Trustee v. United States, filed May 1980, Board of Governors, filed December 1980, United States Court of Claims. U.S.D.C. for the District of Massachusetts. Louis J. Roussel v. Comptroller of the Currency and Securities Industry Association v. Board of Gover- Federal Reserve Board, filed April 1980, U.S.D.C. nors, et al., filed October 1980, U.S.D.C. for the for the District of Columbia. District of Columbia. County National Bancorporation and TGB Co. v. Securities Industry Association v. Board of Gover- Board of Governors, filed September 1979, nors, et al., filed October 1980, U.S.C.A. for the U.S.C.A. for the Eighth Circuit. District of Columbia. Donald W. Riegle, Jr. v. Federal Open Market Com- A. G. Becker, Inc. v. Board of Governors, et al., filed mittee, filed July 1979, U.S.D.C. for the District of October 1980, U.S.D.C. for the District of Colum- Columbia. bia. Security Bancorp and Security National Bank v. A. G. Becker, Inc. v. Board of Governors, et al., filed Board of Governors, filed March 1978, U.S.C.A. for October 1980, U.S.C.A. for the District of Colum- the Ninth Circuit. bia. Darnell Hilliard v. G. William Miller, et al., filed Independent Insurance Agents of America and Inde- September 1976, U.S.C.A. for the District of Copendent Insurance Agents of Missouri v. Board of lumbia. Governors, filed September 1980, U.S.C.A. for the Roberts Farms, Inc. v. Comptroller of the Currency, Eighth Circuit. et al., filed November 1975, U.S.D.C. for the South- Nebraska Bankers Association, et al. v. Board of ern District of California. Governors, et al., filed September 1980, U.S.D.C. David Merrill, et al. v. Federal Open Market Commitfor the District of Nebraska. tee, filed May 1975, U.S.D.C. for the District of Republic of Texas Corporation v. Board of Governors, Columbia. filed September 1980, U.S.C.A. for the Fifth Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A2 Federal Reserve Bulletin • January 1982 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 Commercial bank assets and liabilities, September 30, 1981 A54 U.S. international transactions—Summary A76 Assets and liabilities of U.S. branches and A55 U.S. foreign trade agencies of foreign banks, September 30, 1981 A55 U.S. reserve assets 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 Q4 Q1 Q2 Q3 July Aug. Sept. Oct. Nov. Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 Reserves of depository institutions 1 Total 16.7 2.7 3.3 6.6 7.9 8.3 22.0 -10.3 -.1 2 Required 15.5 4.0 4.3 5.9 7.9 9.8 18.4 -6.3 -2.2 3 Nonborrowed 7.2 7.7 -3.3 10.6 19.8 16.9 21.7 -2.2 15.8 4 Monetary base2 10.8 4.9 5.5 5.3 8.2 5.0 4.3 -.6 5.8 Concepts of money and liquid assets3 5 Ml 10.8 4.8r 8.6r ,5r 3.6 7.5 -2.8 3.3 13.6 6 M2 8.1 8.2' 10.6 7.2r 7.4 11.7 6.5 8.1 17.2 7 8 M L 3 1 1 1 1 . . 4 3 1 1 2 2 . . 9 4 10 8 . . 6 4 1 10 1 . . 3 0 8 8. . 0 7 1 15 3. . 5 0 11 9 . . 1 2 n 5. . 9 a r 1 n 3 . . a 5 . Time and savings deposits Commercial banks 9 Total 15.4 17.0 10.0 17.3 16.7 20.8 7.9 5.0r 5.5 10 Savings4 1.5 -30.5 -11.9 -19.6 -11.5 -29.1 -22.4 -19.0 13.9 11 Small-denomination time5 16.2 30.2 13.4 21.0 14.5 30.9 20.1 24.7 17.3 12 Large-denomination time6 25.4 37.5 20.0 34.7 34.8 36.5 10.4 -4.4 -11.5 13 Thrift institutions7 9.7 5.3 .4 -1.7 -5.3 -2.0 1.3 3.5r 6.5 14 Total loans and securities at commercial banks8. 14.6 11.8 6.1 8.4r 6.0 10.3r 10.7r 8.5r 3.2 1981 1981 Q1 Q2 Q3 Q4 Aug. Sept. Oct. Nov. Dec. Interest rates (levels, percent per annum) Short-term rates 15 Federal funds9 16.57 17.78 17.58 13.59 17.82 15.87 15.08 13.31 12.37 16 Discount window borrowing10 13.00 13.62 14.00 13.03 14.00 14.00 14.00 13.00 12.10 17 Treasury bills (3-month market yield) 14.39 14.91 15.05 11.75 15.51 14.70 13.54 10.86 10.85 18 Commercial paper (3-month)1112 15.34 16.15 16.78 13.04 17.23 16.09 14.85 12.16 12.12 Long-term rates Bonds 19 U.S. government13 12.74 13.49 14.51 14.14 14.52 15.07 15.13 13.56 13.73 20 State and local government14 9.97 10.69 12.11 12.54 12.26 12.92 12.83 11.89 12.90 21 Aaa utility (new issue)15 14.45 15.41 16.82 15.67 17.21 16.94 15.56 15.20 22 Conventional mortgages16 15.10 16.15 17.50 17.33 17.50 18.30 18.05 16.95 17.00 1. Unless otherwise noted, rates of change are calculated from average amounts 5. Small-denomination time deposits are those issued in amounts of less than outstanding in preceding month or quarter. $100,000. 2. Includes reserve balances at Federal Reserve Banks in the current week plus 6. Large-denomination time deposits are those issued in amounts of $100,000 or vault cash held two weeks earlier used to satisfy reserve requirements at all deposi- more. tory institutions plus currency outside the U.S. Treasury, Federal Reserve Banks, 7. Savings and loan associations, mutual savings banks, and credit unions. the vaults of depository institutions, and surplus vault cash at depository institu- 8. Changes calculated from figures shown in table 1.23. tions. 9. Averages of daily effective rates (average of the rates on a given date weighted 3. Ml: Averages of daily figures for (1) currency outside the Treasury, Federal by the volume of transactions at those rates). Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of non- 10. Rate for the Federal Reserve Bank of New York. bank issuers; (3) demand deposits at all commercial banks other than those due 11. Quoted on a bank-discount basis. to domestic banks, the U.S. government, and foreign banks and official institutions 12. Unweighted average of offering rates quoted by at least five dealers. less cash items in the process of collection and Federal Reserve float; and (4) 13. Market yields adjusted to a 20-year maturity by the U.S. Treasury. negotiable order of withdrawal (NOW) and automatic transfer service (ATS) ac- 14. Bond Buyer series for 20 issues of mixed quality. counts at banks and thrift institutions, credit union share draft (CUSD) accounts, 15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by and demand deposits at mutual savings banks. Moody's Investors Service and adjusted to an Aaa basis. Federal Reserve com- M2: Ml plus savings and small-denomination time deposits at all depository pilations. institutions, overnight repurchase agreements at commercial banks, overnight Eu- 16. Average rates on new commitments for conventional first mortgages on new rodollars held by U.S. residents other than banks at Caribbean branches of member homes in primary markets, unweighted and rounded to nearest 5 basis points, from banks, and money market mutual fund shares. Dept. of Housing and Urban Development. M3: M2 plus large-denomination time deposits at all depository institutions and NOTE. Reserve series have been revised to adjust for discontinuties associated term RPs at commercial banks and savings and loan associations. with changes in Regulation D and with the transitional phase-in of reserve re- L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents quirements under the Monetary Control Act of 1980. Reserve measures from other than banks, bankers acceptances, commercial paper, Treasury bills and other November 1980 to date reflect a one-time increase—estimated at $550 million to liquid Treasury securities, and U.S. savings bonds. $600 million—in required reserves associated with the reduction of week-end avoid- 4. Savings deposits exclude NOW and ATS accounts at commercial banks and ance activities of a few large banks. thrifts and CUSD accounts at credit unions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic NonfinancialS tatistics • January 1982 1.11 RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for week ending Factors 1981 1981 Oct. Nov. Dec. Nov. 18 Nov. 25 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 145,960 148,339 152,072 149,300 149,245 150,345 149,452 151,344 153,394 153,342 2 U.S. government securities1 123,497 125,247 128,505 125,951 126,396 126,175 126,683 128,459 129,574 129,223 3 Bought outright 123,273 124,559 127,483 124,599 125,283 125,199 126,461 128,459 128,455 127,172 4 Held under repurchase agreements 224 688 1,022 1,352 1,113 976 222 0 1,119 2,051 5 Federal agency securities 8,700 8,888 9,291 8,844 9,048 9,296 9,147 9,125 9,257 9,555 6 Bought outright 8,652 8,776 9,126 8,646 8,857 9,130 9,129 9,125 9,1-25 9,125 7 Held under repurchase agreements 48 112 165 198 191 166 18 0 132 430 8 Acceptances 58 261 315 502 392 398 48 0 254 798 9 Loans 1,149 695 642 561 337 317 618 398 621 883 10 Float 3,285 3,320 3,608 3,423 3,419 4,257 2,864 3,528 4,016 3,640 11 Other Federal Reserve assets 9,271 9,928 9,711 10,019 9,653 9,901 10,092 9,835 9,672 9,244 12 Gold stock 11,152 11,152 11,152 11,152 11,152 11,152 11,152 11,152 11,152 11,152 13 Special drawing rights certificate account... 3,318 3,318 3,318 3,318 3,318 3,318 3,318 3,318 3,318 3,318 14 Treasury currency outstanding 13,664 13,712 13,682 13,660 13,668 13,785 13,679 13,679 13,681 13,687 ABSORBING RESERVE FUNDS 15 Currency in circulation 138,500 140,553 143,674 140,759 140,955 141,959 142,388 143,265 144,046 145,197 16 Treasury cash holdings 455 450 443 450 453 447 444 445 442 437 Deposits, other than reserves, with Federal Reserve Banks 17 Treasury 3,339 3,061 2,965 3,215 2,841 3,028 2,666 2,772 3,215 2,912 18 Foreign 353 325 343 338 310 335 312 304 361 373 19 Other 611 688 605 696 591 731 573 578 592 574 20 Required clearing balances 74 91 110 89 95 99 105 110 110 115 21 Other Federal Reserve liabilities and 22 Rese c r a v p e it a a c l c ounts2 25 5 , , 5 1 9 71 2 2 5 5 , , 4 9 3 1 8 5 2 5 6 , , 7 3 6 15 8 26 5, , 4 4 0 78 5 26 5, , 5 5 8 56 3 26 5, , 7 2 5 4 9 2 2 5 5 , , 9 16 5 3 2 2 5 6 , , 9 0 6 5 3 7 26 5, ,9 8 6 14 5 2 5 6 , , 3 5 7 2 0 1 End-of-month figures Wednesday figures 1981 1981 Oct. Nov. Dec. Nov. 18 Nov. 25 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit outstanding 143,917 149,264 153,136 149,904 149,966 152,758 154,036 153,115 158,352 156,552 24 U.S. government securities1 123,005 126,539 130,954 125,912 126,788 127,553 127,179 128,570 131,260 131,493 25 Bought outright 123,005 124,743 127,738 124,337 126,479 125,325 127,179 128,570 127,247 127,990 26 Held under repurchase agreements 0 1,796 3,216 1,575 309 2,228 0 0 4,013 3,503 27 Federal agency securities 8,646 9,448 9,394 9,020 9,189 9,512 9,129 9,125 9,604 9,562 28 Bought outright 8,646 9,129 9,125 8,646 9,139 9,129 9,129 9,125 9,125 9,125 29 Held under repurchase agreements 0 319 269 374 50 383 0 0 479 437 30 Acceptances 0 744 195 656 164 778 0 0 787 624 31 Loans 924 232 1,601 1,444 656 396 3,213 505 1,290 1,237 32 Float 1,690 2,177 1,762 3,304 3,229 4,370 4,292 5,682 6,183 4,168 33 Other Federal Reserve assets 9,652 10,124 9,230 9,568 9,940 10,149 10,223 9,233 9,228 9,468 34 Gold stock 11,152 11,152 11,151 11,152 11,152 11,152 11,152 11,152 11,152 11,151 35 Special drawing rights certificate account... 3,318 3,318 3,318 3,318 3,318 3,318 3,318 3,318 3,318 3,318 36 Treasury currency outstanding 14,363 14,441 13,687 13,666 13,674 13,679 13,679 13,679 13,687 13,687 ABSORBING RESERVE FUNDS 37 Currency in circulation 138,847 142,683 144,774 141,087 141,691 142,443 143,334 143,886 144,032 145,517 38 Treasury cash holdings 447 445 443 450 450 447 443 442 442 442 Deposits, other than reserves, with Federal Reserve Banks 39 Treasury 3,550 3,475 4,301 3,146 2,905 3,702 2,543 3,352 2,282 3,402 40 Foreign 547 535 505 284 302 303 327 264 333 319 41 Other 573 715 781 522 720 661 543 579 614 600 42 Required clearing balances 82 99 117 89 95 99 105 110 110 115 43 Other Federal Reserve liabilities and 44 Rese c r a v p e it a a c l c ounts2 23 5 , , 5 1 9 12 0 2 6 4, , 2 0 1 1 3 1 2 5 5 , , 2 1 6 11 1 27 5 , , 0 38 77 5 26 5, ,4 52 2 0 7 27 5 , , 4 80 47 6 29 5, , 6 19 9 8 3 26 5, ,8 8 1 1 8 4 32 5 , , 4 2 0 9 4 2 28 5 , , 9 3 6 4 8 5 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. Apr. May June July Aug. Sept. Oct. Nov. Dec. 1 Reserve balances with Reserve Banks1 26,664 27,173 26,822 26,819 27,172 27,023 25,527 25,592 25,915 26,316 2 Total vault cash (estimated) 18,149 17,189 17,773 18,198 1188,,227733 18,438 18,927 18,810 18,839 19,546 3 Vault cash at institutions with required reserve balances2 12,602 11,687 12,124 12,396 12,504 12,585 12,966 12,881 12,956 13,550 4 Vault cash equal to required reserves at other institutions 704 1,204 1,310 1,350 1,319 1,364 2,041 2,054 2,011 2,126 5 Surplus vault cash at other institutions3 .. 4,843 4,298 4,339 4,452 4,450 4,489 3,920 3,875 3,872 3,870 6 Reserve balances + total vault cash4 44,940 44,683 45,100 45,507 4455,,551133 44,499 44,430 4444,,777788 4455,,888833 4455,,888833 7 Reserve balances + total vault cash used to satisfy reserve requirements4'5 40,097 40,153 40,344 40,648 41,057 41,024 40,579 40,555 40,906 42,013 8 Required reserves (estimated) 40,067 40,071 40,213 40,098 40,675 40,753 40,179 40,438 40,591 41,614 9 Excess reserve balances at Reserve Banks4-6 . 30 82 131 550 382 271 400 117 315 399 10 Total borrowings at Reserve Banks 1,617 1,343 2,154 2,038 1,751 1,408 1,473 1,149 695 642 11 Seasonal borrowings at Reserve Banks 116 161 259 291 248 220 222 152 79 53 12 Extended credit at Reserve Banks n.a. n.a. n.a. n.a. n.a. 79 301 442 178 149 Weekly averages of daily figures for week ending: Oct. 28 Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 13 Reserve balances with Reserve Banks1 26,134 25,437 24,627 26,478 26,556 26,242 25,163 26,098 26,965 26,521 14 Total vault cash (estimated) 18,558 19,212 19,403 18,593 1177,,993344 1199,,336600 19,587 2200,,332222 1188,,663322 1199,,774488 15 Vault cash at institutions with required reserve balances2 12,767 13,272 13,322 12,666 12,410 1133,,335599 13,450 1133,,886611 1133,,008877 1133,,886622 16 Vault cash equal to required reserves at other institutions 1,959 2,021 2,091 1,992 1,916 2,053 2,158 2,251 2,023 2,104 17 Surplus vault cash at other institutions3.. 3,832 3,919 3,990 3,935 3,608 3,948 3,979 4,210 3,522 3,782 18 Reserve balances + total vault cash4 44,716 44,674 44,054 45,095 44,513 4455,,662244 44,772 4466,,444444 4455,,661188 4466,,228855 19 Reserve balances + total vault cash used to satisfy reserve requirements4-5 40,884 40,755 40,064 41,160 40,905 41,676 40,793 42,234 42,096 42,503 20 Required reserves (estimated) 40,625 40,521 39,637 40,966 40,753 41,230 40,608 42,131 41,721 42,031 21 Excess reserve balances at Reserve Banks4-6 . 259 234 427 194 152 446 185 103 375 472 22 Total borrowings at Reserve Banks 1,187 1,237 965 561 337 317 618 398 621 883 23 Seasonal borrowings at Reserve Banks 147 134 134 102 69 41 30 51 70 75 24 Extendedcredit at Reserve Banks 464 452 111 126 123 125 125 130 161 173 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 DomesticN onfinancialS tatistics • January 1982 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks1 Averages of daily figures, in millions of dollars 1981, week ending Wednesday By maturity and source Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 One day and continuing contract 1 Commercial banks in United States 48,715 54,555r 52,581 49,639r 51,901 57,328 55,055 51,653 5522,,557766 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 17,192 17,907 18,785 18,942r 18,296 19,289 19,235 18,500 18,135 3 Nonbank securities dealers 3,464 3,755 3,844 3,774'' 3,566 4,018 4,242 3,882 3,296 4 All other 19,548 19,126 19,658 18,775'' 16,630 19,834 20,479 19,910 17,918 All other maturities 5 Commercial banks in United States 3,853 3,612 3,367 3,600 3,834 3,311 3.416 3,717 3,934 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 7,598 7,719 7,794 7,998 7,786 7,528 7,691 8,197 8,122 7 Nonbank securities dealers 4,384 4,369 4,386 4,283 4,350 4,385 4,052 3,967 4,189 8 All other 10,359 10,552 10,415 11,037 13,294 10,943 10,000 10,328 12,346 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 18,238 18,508 19,293 16,364r 19,417 18,588 17,376 17,483 18,007 10 Nonbank securities dealers 2,773 ?,474 3,589 3,406r 3,474 4,239 3,963 3,845 4,037 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 A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per annum Current and previous levels Extended credit' SSShhhooorrrttt---ttteeerrrmmm aaadddjjjuuussstttmmmeeennnttt cccrrreeedddiiittt aaannnddd ssseeeaaasssooonnnaaalll cccrrreeedddiiittt 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 1122//3311//8811 rraattee 1122//3311//8811 rraattee 1122//3311//8811 rraattee 12/31/81 date rate Boston 12 12/4/81 13 12 13 13 14 14 15 12/4/81 New York 12 12/4/81 13 12 13 13 14 14 15 12/4/81 Philadelphia 12 12/4/81 13 12 13 13 14 14 15 12/4/81 Cleveland 12 12/4/81 13 12 13 13 14 14 15 12/4/81 Richmond 12 12/4/81 13 12 13 13 14 14 15 12/4/81 Atlanta 12 12/4/81 13 12 13 13 14 14 15 12/4/81 Chicago 12 12/4/81 13 12 13 13 14 14 15 12/4/81 St. Louis 12 12/4/81 13 12 13 13 14 14 15 12/4/81 Minneapolis 12 12/4/81 13 12 13 13 14 14 15 12/4/81 Kansas City 12 12/4/81 13 12 13 13 14 14 15 12/4/81 Dallas 12 12/4/81 13 12 13 13 14 14 15 12/4/81 San Francisco 12 12/4/81 13 12 13 13 14 14 15 12/4/81 Range of rates in recent years2 Range (or F.R. Range (or F.R. Range (or level)— Bank level)— Bank level)— Effective date All F.R. of Effective date All F.R. of Effective date All F.R. Banks N.Y. Banks N.Y. Banks In effect Dec. 31, 1972. 4Vi 4Vi 1976— Jan. 19. 514-6 5Vi 1979— Sept. 19. 10Vi-ll 11 1973— Jan. 15 5 5 23. 5Vi 5Vi 21. 11 11 Feb. 26 5-5 Vi 5Vi Nov. 22. 5V4-5 Vi 51/4 Oct. 8. 11-12 12 Mar. 2 5Vi 5Vi 26. 51/4 5V4 10. 12 12 A M p a r y . 2 1 1 3 4 1 8 5 5 3 ^ 6 / 5 4 -5 - 3 3 6 /4 / 4 6 6 5 5 3 V / i 4 1977— A Se u p g t . . 3 3 0 2 1. . . 5 5 1 V / 5 4 4 % - - 5 5 3 3 / / 4 4 5 5 5 3 3 1 / / / 4 4 4 1980— F M e a b y . 2 1 1 5 9 9 . . . 1 1 1 2 2 3 - - 1 1 3 3 1 1 1 3 3 3 June 11 6-6 Vi 6V2 Oct. 26. 6 6 30. 12 12 1 5 6V1 6V2 June 13. 11-12 11 July 2 7 7 1978— Jan. 9. 6-6 Vi 6Vi 16. 11 11 Aug. 14 7-7 Vi 1 Vz 20. 6 Vi 6 Vi July 28. 10-11 10 2 3 7 Vi IVl May 11. 6Vi-7 7 29. 10 10 12. 7 7 Sept. 26. 11 11 1974— A D p e r c . . 2 3 5 0 9 7 7 8 V % i - - 8 8 m J J A u u u l l y y g . 2 10 3 1. . . 7 7 7 3 1 -7 / / 4 1 4 / 4 7 I 7 1 V % /4 * N D o ec v . . 17 5 8 . . . 12 1 1 - 3 2 1 3 1 1 1 2 3 3 1 6 7V4 Sept. 22. 8 8 Oct. 16. 8-8 Vi 8Vi 1981— May 5. 13-14 14 1975— Jan. 1 6 0 7 7 1 ! / / 4 4 -7 -7 3/ 3 4 /4 7 7 3 1 / / 4 4 Nov. 20 1. . 8V m i-9 Vi 8 9V V 4 i M No a v y . 8 2. . 13 1 - 4 1 4 1 1 4 3 2 4 7V4 71/4 3. 9Vi 9Vi Nov 6. 13 13 Feb. 5 6V4-7V4 6% Dec. 4. 12 12 Mar. 1 1 0 4 7 61/ 6 6 4 1 3 - / / 6 4 4 3 /4 6 6 6 V 3 1/ / 4 t 4 1979— J A u u ly g . 2 2 17 0 0 . . . lO 1 1 - 0 0 lO V V i i 1 1 lO 0 0 V V 5 i May 16 6-61/4 6 In effect Dec. 31, 1981 12 12 1. Applicable to advances when exceptional circumstances or practices involve In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adonly a particular depository institution and to advances when an institution is under justment credit borrowings by institutions with deposits of $500 million or more sustained liquidity pressures. See section 201.3(b)(2) of Regulation A. that had borrowed in successive weeks or in more than 4 weeks in a calendar 2. Rates for short-term adjustment credit. For description and earlier data see quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, the following publications of the Board of Governors: Banking and Monetary 1980. On Nov. 17, 1980, a 2 percent surcharge was adopted; the surcharge was Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1971-1975, 1972- subsequently raised to 3 percent on Dec. 5, 1980 and to 4percent on May 5, 1981. 1976, 1973-1977, and 1974-1978. The surcharge was reduced to 3 percent effective Sept. 22, 1981 and to 2 percent effective Oct. 12. As of Oct. 1, the formula for applying the surcharge was changed from a calendar quarter to a moving 13-week period. The surcharge was eliminated on Nov. 17, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • January 1982 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 accounts6,7 0-2 7 12/30/76 $0-$26 million 3 11/13/80 2-10 9>/2 12/30/76 1122 1111//1133//8800 10-100 113/4 12/30/76 100-400 123/4 12/30/76 Nonpersonal time deposits8 Over 400 161/4 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 All types 3 11/13/80 0-5, by maturity 30-179 days 3 3/16/67 180 days to 4 years 2Vi 1/8/76 4 years or more 1 10/30/75 Over 5, by maturity 30-179 days 6 12/12/74 180 days to 4 years 2l/2 1/8/76 4 years or more 1 10/30/75 1. For changes in reserve requirements beginning 1963, see Board's Annual was reduced to zero beginning July 24, 1980. Managed liabilities are defined as Statistical Digest, 1971-1975 and tor prior changes, see Board's Annual Report for large time deposits. Eurodollar borrowings, repurchase agreements against U.S. 1976, table 13. Under provisions of the Monetary Control Act, depository insti- government and federal agency securities, federal funds borrowings from nontutions include commercial banks, mutual savings banks, savings and loan asso- member institutions, and certain other obligations. In general, the base for the ciations, credit unions, agencies and branches of foreign banks, and Edge Act marginal reserve requirement was originally the greater of (a) $100 million or (b) corporations. the average amount of the managed liabilities held by a member bank, Edge 2. (a) Requirement schedules are graduated, and each deposit interval applies corporation, or family of U.S. branches and agencies of a foreign bank for the two to that part of the deposits of each bank. Demand deposits subject to reserve statement weeks ending Sept. 26,1979. For the computation period beginning Mar. requirements were gross demand deposits minus cash items in process of collection 20,1980, the base was lowered by (a) 7 percent or (b) the decrease in an institution's ana demand balances due from domestic banks. U.S. office gross loans to foreigners and gross balances due from foreign offices (b) The Federal Reserve Act as amended through 1978 specified different ranges of other institutions between the base period (Sept. 13-26, 1979) and the week of requirements for reserve city banks and for other banks. Reserve cities were ending Mar. 12,1980, whichever was greater. For the computation period beginning designated under a criterion adopted effective Nov. 9,1972, by which a bank having May 29,1980, the base was increased by 1V2 percent above the base used to calculate net demand deposits of more than $400 million was considered to have the character the marginal reserve in the statement week of May 14^21, 1980. In addition, of business of a reserve city bank. The presence of the head office of such a bank beginning Mar. 19,1980, the base was reduced to the extent that foreign loans and constituted designation of that place as a reserve city. Cities in which there were balances declined. Federal Reserve Banks or branches were also reserve cities. Any banks having net 5. For existing nonmember banks and thrift institutions at the time of impledemand deposits of $400 million or less were considered to have the character of mentation of the Monetary Control Act, the phase-in period ends Sept. 3, 1987. business of banks outside of reserve cities and were permitted to maintain reserves For existing member banks the phase-in period is about three years, depending on at ratios set for banks not in reserve cities. whether their new reserve requirements are greater or less than the old require- (c) Effective Aug. 24, 1978, the Regulation M reserve requirements on net ments. For existing agencies and branches of foreign banks, the phase-in ends Aug. balances due from domestic banks to their foreign branches and on deposits that 12,1982. All new institutions will have a two-year phase-in beginning with the date foreign branches lend to U.S. residents were reduced to zero from 4 percent and that they open for business. 1 percent respectively. The Regulation D reserve requirement on borrowings from 6. Transaction accounts include all deposits on which the account holder is unrelated banks abroad was also reduced to zero from 4 percent. permitted to make withdrawals by negotiable or transferable instruments, payment (d) Effective with the reserve computation period beginning Nov. 16, 1978, orders of withdrawal, and telephone and preauthorized transfers (in excess of three domestic deposits of Edge corporations were subject to the same reserve require- per month) for the purpose of making payments to third persons or others. ments as deposits of member banks. 7. The Monetary Control Act of 1980 requires that the amount of transaction 3. (a) Negotiable order of withdrawal (NOW) accounts and time deposits such accounts against which the 3 percent reserve requirement will apply be modified as Christmas and vacation club accounts were subject to the same requirements as annually to 80 percent of the percentage increase in transaction accounts held by savings deposits. all depository institutions on the previous June 30. At the beginning of 1982 the (b) The average reserve requirement on savings and other time deposits before amount was accordingly increased from $25 million to $26 million. implementation of the Monetary Control Act had to be at least 3 percent, the 8. In general, nonpersonal time deposits are time deposits, including savings minimum specified by law. deposits, that are not transaction accounts and in which the beneficial interest is 4. (a) Effective Nov. 2, 1978, a supplementary reserve requirement of 2 percent held by a depositor that is not a natural person. Also included are certain transwas imposed on large time deposits of $100,000 or more, obligations of affiliates, ferable time deposits held by natural persons, and certain obligations issued to and ineligible acceptances. This supplementary requirement was eliminated with depository institution offices located outside the United States. For details, see the maintenance period beginning July 24, 1980. section 204.2 of Regulation D. (b) Effective with the reserve maintenance period beginning Oct. 25, 1979, a marginal reserve requirement of 8 percent was added to managed liabilities in NOTE. Required reserves must be held in the form of deposits with Federal excess of a base amount. This marginal requirement was increased to 10 percent Reserve Banks or vault cash. After implementation of the Monetary Control Act, beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and nonmembers may maintain reserves on a pass-through basis with certain approved institutions. NOTE TO TABLE 1.16 NOTE. Before Mar. 31, 1980, the maximum rates that could be paid by federally insured commercial banks, mutual savings banks, and savings and loan associations were established by the Board of Governors of the Federal Reserve System, the Board of Directors of the Federal Deposit Insurance Corporation, and the Federal Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526 respectively. Title II of the Depository Institutions Deregulation and Monetary Control Act of 1980 (P.L. 96-221) transferred the authority of the agencies to establish maximum rates of interest payable on deposits to the Depository Institutions Deregulation Committee. The maximum rates on time deposits in denominations of $100,000 or more with maturities of 30-89 days were suspended in June 1970; such deposits maturing in 90 days or more were suspended in May 1973. For information regarding previous interest rate ceilings on all types of accounts, see earlier issues of the FEDERAL RESERVE BULLETIN, the Federal Home Loan Bank Board Journal, and the Annual Report of the Federal Deposit Insurance Corporation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.16 MAXIMUM INTEREST RATES PAYABLE on Time and Savings Deposits at Federally Insured Institutions Percent per annum Commercial banks Savings and loan associations and mutual savings banks (thrift institutions) Type and maturity of deposit In effect Dec. 31, 1981 Previous maximum In effect Dec. 31, 1981 Previous maximum Percent Effective Percent Effective Effective Percent date date date 1 Savings 5V4 7/1/79 7/1/73 5Vi 7/1/79 5V4 2 Negotiable order of withdrawal accounts 2 5V4 12/31/80 1/1/74 5V4 12/31/80 5 Time accounts 3 Fixed ceiling rates by maturity 4 4 3 9 14 0 - d 89 a y d s a to y s 1 ' year 5 5 3 V /4 4 8 1 / /1 1/ / 7 8 9 0 5 S Vi 7 7 / / 1 1 / / 7 7 3 3 (6) 1/1/80 (6) 53/4 6 7 5 8 2 2 4 1 V t t t i o o o to 2 2 6 V y 4 y i e e y y a a e e r r s s a a r r 1 8 s s 7 7 6 7V V 4 i 11 7 7 / / / 1 1 1 / / / 7 7 7 3 3 3 5 5 533 V //4 5 4 1 1 1 / / / 2 2 2 1 1 1 / / / 7 7 7 0 0 0 6 6 I3 V V/4 z i 11/ ( ( 1 ' ' ) ) / 73 6 6 5 3/4 9 6 to 8 years 8 m 12/23/74 11/1/73 73/4 12/23/74 10 8 years or more 8 73/4 6/1/78 6/1/78 11 Issued to governmental units (all maturities) 10 6/1/78 '12/23/74 6/1/78 12 Individual retirement accounts and Keogh (H.R. 10) plans (3 years or more) !0-n 6/1/78 7/6/77 6/1/78 Special variable ceiling rates by maturity 13 6-month money market time deposits 12 13 14 12-month all savers certificates 15 2Vi years to 4 years Accounts with no ceiling rates 16 Individual retirement accounts and Keogh (H.R. 10) plans (18 months or more)17 1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loan Bill rate or 4-week Thrift ceiling associations. average bill rate 2. For authorized states only, federally insured commercial banks, savings and loan associations, cooperative banks, and mutual savings banks in Massachusetts 7.25 per cent or below 7.75 per cent and New Hampshire were first permitted to offer negotiable order of withdrawal Above 7.25 per cent, but below Vl of 1 percentage point plus the higher of (NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was ex- 8.50 per cent the bill rate or 4-week average bill rate tended to similar institutions throughout New England on Feb. 27, 1976, and in 8.50 per cent or above, but below 9 per cent New York State on Nov. 10, 1978, and in New Jersey on Dec. 28, 1979. Author- 8.75 per cent ization to issue NOW accounts was extended to similar institutions nationwide 8.75 per cent or above V4 of 1 percentage point plus the higher of effective Dec. 31, 1980. the bill rate or 4-week average bill rate 3. For exceptions with respect to certain foreign time deposits see the BULLETIN for October 1962 (p. 1279), August 1965 (p. 1084), and February 1968 (p. 167). The maximum allowable rates in December for commercial banks and thrifts based 4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts on the bill rate were as follows: Dec. 8, 10.951; Dec 15, 11.022; Dec. 22, 11.845; at savings and loan associations was decreased to 14 days and the minimum maturity Dec. 29,12.088. The maximum allowable rates in December for commercial banks period for time deposits at savings and loans in excess of $100,000 was decreased and thrifts based on the 4-week average bill rate were as follows: Dec. 8, 11.274; to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice period for Dec. 15, 11.09; Dec. 22, 11.245; Dec. 29, 11.477. time deposits was decreased from 30 to 14 days for mutual savings banks. 14. Effective Oct. 1, 1981, depository institutions are authorized to issue all 5. Effective Oct. 30, 1980, the minimum maturity or notice period for time savers certificates (ASCs) with a 1-year maturity and an annual investment yield deposits was decreased from 30 to 14 days for commercial banks. equal to 70 percent of the average investment yield for 52-week U.S. Treasury bills 6. No separate account category. as determined by the auction of 52-week Treasury bills held immediately before 7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was the calendar week in which the certificate is issued. A maximum lifetime exclusion required for savings and loan associations, except in areas where mutual savings of $1,000 ($2,000 on a joint return) from gross income is generally authorized for banks permitted lower minimum denominations. This restriction was removed for interest income from ASCs. The annual investment yields for ASCs issued in deposits maturing in less than 1 year, effective Nov. 1, 1973. December (in percent) were as follows: Dec. 27, 10.16. 8. No minimum denomination. Until July 1, 1979, minimum denomination was 15. Effective Aug. 1, 1981, commercial banks may pay interest on any variable $1,000 except for deposits representing funds contributed to an individual retire- ceiling nonnegotiable time deposit with an original maturity of 2Yz years to less ment account (IRA) or a Keogh (H.R. 10) plan established pursuant to the Internal than 4 years at a rate not to exceed V4 of 1 percent below the average 2Vi-year Revenue Code. The $1,000 minimum requirement was removed for such accounts yield for U.S. Treasury securities as determined and announced by the Treasury in December 1975 and November 1976 respectively. Department immediately before the date of deposit. Thrift institutions may pay 9. Between July 1, 1973, and Oct. 31, 1973, certificates maturing in 4 years or interest on these certificates at a rate not to exceed the average 2Vi -year yield for more with minimum denominations of $1,000 had no ceiling; however, the amount Treasury securities as determined and announced by the Treasury Department of such certificates that an institution could issue was limited to 5 percent of its immediately before the date of deposit. If the announced average 2Vi-year yield total time and savings deposits. Sales in excess of that amount, as well as certificates for Treasury securities is less than 9.50 percent, commercial banks may pay 9.25 of less than $1,000, were limited to the 6Vi percent ceiling on time deposits maturing percent and thrift institutions 9.50 percent for these deposits. These deposits have in 2V2 years or more. Effective Nov. 1, 1973, ceilings were reimposed on certif- no required minimum denomination, and interest may be compounded on them. icates maturing in 4 years or more with minimum denomination of $1,000. There The ceiling rates of interest at which they may be offered vary biweekly. The is no limitation on the amount of these certificates that banks can issue. maximum allowable rates in December (in percent) for commercial banks were as 10. Accounts subject to fixed-rate ceilings. See footnote 8 for minimum denom- follows: Dec. 8, 12.70; Dec. 22. 13.20; and for thrift institutions: Dec. 8, 12.95; ination requirements. Dec. 22. 13.45. 11. Effective Jan. 1, 1980, commercial banks are permitted to pay the same rate 16. Between Jan. 1, 1980, and Aug. 1, 1981, commercial banks, and thrift inas thrifts on IRA and Keogh accounts and accounts of governmental units when stitutions were authorized to offer variable ceiling nonnegotiable time deposits with such deposits are placed in the new 2Vi-year or more variable-ceiling certificates no required minimum denomination and with maturities of 2Vi years or more. or in 26-week money market certificates regardless of the level of the Treasury bill Effective Jan. 1, 1980, the maximum rate for commercial banks was 3/4 percentage rate. point below the average yield on 2V5-year U.S. Treasury securities; the ceiling rate 12. Must have a maturity of exactly 26 weeks and a minimum denomination of for thrift institutions was *A percentage point higher than that for commercial banks. $10,000, and must be nonnegotiable. Effective Mar. 1, 1980, a temporary ceiling of ll3/4 percent was placed on these 13. Commercial banks ana thrift institutions were authorized to offer money accounts at commercial banks and 12 percent on these accounts at savings and loan market time deposits effective June 1, 1978. These deposits have a minimum de- associations. Effective June 2, 1980, the ceiling rates for these deposits at comnomination requirement of $10,000 and a maturity of 26 weeks. The ceiling rate mercial banks and savings and loans was increased Vi percentage point. The temof interest on these deposits is indexed to the discount rate (auction average) on porary ceiling was retained, and a minimum ceiling of 9.25 percent for commercial most recently issued 26-week U.S. Treasury bills. Interest on these certificates may banks and 9.50 percent for thrift institutions was established. not be compounded. Effective for all 6-month money market certificates issued 17. Effective Dec. 1, 1981, depository institutions were authorized to offer time beginning Nov. 1, 1981, depository institutions may pay rates of interest on these deposits not subject to interest rate ceilings when the funds are deposited to the deposits indexed to the higher of (1) the rate for 26-week Treasury bills established credit of, or in which the entire beneficial interest is held by, an individual pursuant immediately before the date of aeposit (bill rate) or (2) the average of the four to an IRA agreement or Keogh (H.R. 10) plan. Such time deposits must have a rates for 26-week Treasury bills established for the 4 weeks immediately prior to minimum maturity of 18 months, and additions may be made to the time deposit the date of deposit (4-week average bill rate). Rate ceilings are determined as at any time before its maturity without extending the maturity of all or a portion follows: of the balance of the account. Bill rate or 4-week Commercial bank ceiling For NOTE see opposite page. average bill rate 7.50 per cent or below 7.75 per cent Above 7.50 per cent V4 of 1 percentage point plus the higher of the bill rate or 4-week average bill rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • January 1982 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1981 Type of transaction 1978 1979 1980 May June July Aug. Sept. Oct. Nov U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched salepurchase transactions) Treasury bills 4 2 3 1 E R G G x e r r c d o o h e s s s s a m n p s p g a u t e l i r e o c s n h s a ses 1 13 2 6 , , , 7 0 6 2 3 2 5 3 8 0 15 2 6 , , , 9 9 8 9 0 5 0 8 5 0 7 7 3, , , 6 3 3 8 6 3 9 8 1 0 79 0 0 0 0 29 9 5 0 0 0 1,3 1 2 0 5 0 0 0 1,7 33 13 3 0 0 1,7 5 9 0 5 4 3 0 5 0 1,1 2 2 5 0 4 7 0 1 0 1,76 1 5 0 6 0 Others within 1 year1 5 6 G G r r o o s s s s s p a u l r e c s h ases 1,184 0 3,203 0 912 0 0 0 0 0 12 0 2 0 0 0 0 0 0 0 0 7 8 9 M E R x e a c d t h u e a m r n it p g y t e i s o h n i s ft -5,170 0 -1 1 1 7 2 , , , 3 6 3 0 0 3 8 9 0 -1 1 8 2 , , 2 4 5 2 1 7 0 -1 2 , , 2 9 8 0 1 0 0 -8 8 2 3 3 3 0 - 1, 3 0 5 7 1 3 0 -2 2 , , 4 8 3 0 0 7 0 -5 6 9 2 9 0 8 425 0 0 -3 1 , , 0 3 4 8 7 9 0 1 to 5 years 1 1 1 0 G G r r o o s s s s s p a u le rc s hases 4,188 0 2,148 0 2,138 0 0 0 0 0 60 0 7 0 0 0 0 0 0 10 0 0 1 1 3 2 E M x a c t h u a r n it g y e shift -178 -12 7 ,6 ,5 9 0 3 8 -8 13 , , 9 4 0 1 9 2 -1,7 6 2 8 4 1 -8 8 3 2 3 3 -1,0 3 7 5 3 1 - 1, 8 7 2 2 0 4 -6 5 2 9 8 9 -425 0 -1 2 , , 0 3 5 2 7 5 5 to 10 years 1 1 5 4 G G r r o o s s s s s p a u l r e c s h ases 1,526 0 523 0 70 0 3 0 0 0 0 0 0 1 1 6 7 E M x a c t h u a r n it g y e s hift 2,803 -4 2 ,6 ,1 4 8 6 1 -3 2 , , 0 9 9 70 2 -1,1 3 7 0 6 0 -1,9 4 8 0 7 0 -3 4 3 0 2 0 Over 10 years 2 2 1 1 9 8 1 0 E G G M x r r a c o o t h s s u s s a r n i s p t g a y u e l r e s c s h h i a ft s es 2 1, , 0 5 6 4 3 5 0 1, 4 61 54 9 0 0 - 1, 4 8 8 2 6 1 6 9 1 0 300 0 0 0 18 0 0 0 2 305 0 0 0 322 0 0 0 All maturities1 22 Gross purchases 24,591 22,325 12,232 790 295 2,301 1,713 1,753 241 1,865 23 Gross sales 13,725 6,855 7,331 0 90 0 333 945 1,157 0 24 Redemptions 2,033 5,500 3,389 0 0 100 0 500 200 16 Matched transactions 25 Gross sales 511,126 627,350 674,000 45,658 51,106 69,972 54,329 52,055 58,581 42,012 26 Gross purchases 510,854 624,192 675,496 43,492 52,607 69,309 55,917 51,555 58,372 41,900 Repurchase agreements 27 Gross purchases 151,618 107,051 113,902 1,219 3,509 23,217 7,199 0 3,902 9,505 28 Gross sales 152,436 106,968 113,040 1,219 3,509 21,599 8,817 0 3,902 7,709 29 Net change in U.S. government securities 7,743 6,896 3,869 -1,376 1,706 3,155 1,350 -192 -1,325 3,534 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 301 853 668 494 31 Gross sales 173 399 0 0 32 Redemptions 235 134 145 10 Repurchase agreements 33 Gross purchases 40,567 37,321 28,895 186 691 5,182 864 787 1,607 34 Gross sales 40,885 36,960 28,863 186 691 4,822 1,225 787 1,288 35 Net change in federal agency obligations -426 681 555 360 -360 -15 802 BANKERS ACCEPTANCES 36 Outright transactions, net 0 0 0 0 0 0 -366 116 453 -453 0 744 37 Repurchase agreements, net -366 116 453 -453 0 744 38 Net change in bankers acceptances 39 TotalA ncecto ucnhta nge in System Open Market 6,951 7,693 4,497 -1,376 1,680 3,968 536 -225 -1,340 5,080 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 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 Oct. Nov. Dec. Consolidated condition statement ASSETS 1 Gold certificate account 11,152 11,152 11,152 11,152 11,151 11,152 11,152 11,151 2 Special drawing rights certificate account 3,318 3,318 3,318 3,318 3,318 3,318 3,318 3,318 3 Coin 387 386 388 382 375 418 400 377 Loans 4 To depository institutions 396 3,213 505 1,290 1,237 924 232 1,601 5 Other 0 0 0 0 0 0 0 0 Acceptances 6 Held under repurchase agreements 778 0 0 787 624 0 744 195 Federal agency obligations 7 Bought outright 9,129 9,129 9,125 9,125 9,125 88,,664466 99,,112299 99,,112255 8 Held under repurchase agreements 383 0 0 479 437 0 319 269 U.S. government securities Bought outright 9 Bills 47,825 49,679 50,341 48,868 49,611 45,605 47,243 49,359 10 Notes 59,207 59,207 59,828 59,978 59,978 59,429 59,207 59,978 11 Bonds 18,293 18,293 18,401 18,401 18,401 17,971 18,293 18,401 12 Total1 125,325 127,179 128,570 127,247 127,990 123,005 124,743 127,738 13 Held under repurchase agreements 2,228 0 0 4,013 3,503 0 1,796 3,216 14 Total U.S. government securities 127,553 127,179 128,570 131,260 131,493 123,005 126,539 130,954 15 Total loans and securities 138,239 139,521 138,200 142,941 142,916 132,575 136,963 142,144 16 Cash items in process of collection 11,060 10,220 13,185 13,543 10,996 7,954 7,485 8,557 17 Bank premises 480 480 480 481 503 491 497 503 Other assets 18 Denominated in foreign currencies2 5,987 6,013 5,122 5,124 5,128 5,717 5,998 5,129 19 All other3 3,682 3,730 3,631 3,623 3,837 3,444 3,629 3,598 20 Total assets 174,305 174,820 175,476 180,564 178,224 165,069 169,442 174,777 LIABILITIES 21 Federal Reserve notes 129,597 130,483 131,036 132,169 132,647 125,351 129,086 131,906 Deposits 7.7 Depository institutions 27,546 29,303 26,928 32,514 29,083 23,672 24,312 25,228 7,1 U.S. Treasury—General account 3,702 2,543 3,352 2,282 3,402 3,550 3,475 4,301 24 Foreign—Official accounts 303 327 264 333 319 547 535 505 25 Other 661 543 579 614 600 573 715 781 26 Total deposits 32,212 32,716 31,123 35,743 33,404 28,342 29,037 30,815 27 Deferred availability cash items 6,690 5,928 7,503 7,360 6,828 6,264 5,308 6,795 28 Other liabilities and accrued dividends4 2,831 2,851 2,975 2,436 2,480 2,114 2,846 2,705 29 Total liabilities 171,330 171,978 172,637 177,708 175,359 162,071 166,277 172,221 CAPITAL ACCOUNTS 30 Capital paid in 1,270 1,271 1,273 1,278 1,278 1,268 1,270 1,278 31 Surplus 1,203 1,203 1,203 1,203 1,203 1,203 1,203 1,278 32 Other capital accounts 502 368 363 375 384 527 692 0 33 Total liabilities and capital accounts 174,305 174,820 175,476 180,564 178,224 165,069 169,442 174,777 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 96,054 95,756 94,596 96,347 95,122 90,857 91,787 95,220 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to bank) .... 151,144 151,602 151,734 151,432 151,126 150,552 150,955 151,033 36 LESS: Held by bank5 21,547 21,119 20,698 19,263 18,479 25,201 21,869 19,127 37 Federal Reserve notes, net 129,597 130,483 131,036 132,169 132,647 125,351 129,086 131,906 Collateral for Federal Reserve notes 38 Gold certificate account 11,152 11,152 11,152 11,152 11,151 11,152 11,152 11,151 39 Special drawing rights certificate account 3,318 3,318 3,318 3,318 3,318 3,318 3,318 3,318 40 Other eligible assets 64 55 45 107 22 0 57 0 41 U.S. government and agency securities 115,063 115,958 116,521 117,592 118,156 110,881 114,559 117,437 42 Total collateral 129,597 130,483 131,036 132,169 132,647 125,351 129,086 131,906 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 • January 1982 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 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 Oct. 30 Nov. 30 Dec. 31 1 Loans—Total 396 3,213 505 1,290 1,237 924 232 1,601 2 Within 15 days 376 3,187 492 1,269 1,218 843 214 1,576 3 16 days to 90 days 20 26 13 21 19 81 18 25 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 778 0 0 787 624 0 744 195 6 Within 15 days 778 0 0 787 624 0 744 195 7 16 days to 90 days 0 0 0 0 0 0 0 0 8 91 days to 1 year 0 0 0 0 0 0 0 0 9 U.S. government securities—Total 127,553 127,179 128,570 131,260 131,493 123,005 126,539 130,954 10 Within 15 days1 7,052 5,545 7,314 9,017 8,514 2,692 5,190 3,936 11 16 days to 90 days 23,638 23,400 22,061 22,802 24,302 26,464 25,503 25,190 12 91 days to 1 year 33,118 34,489 34,720 34,896 34,132 31,438 32,101 37,417 13 Over 1 year to 5 years 35,632 35,632 36,089 36,159 36,159 34,689 35,632 36,025 14 Over 5 years to 10 years 11,587 11,587 11,752 11,752 11,752 11,519 11,587 11,752 15 Over 10 years 16,526 16,526 16,634 16,634 16,634 16,203 16,526 16,634 16 Federal agency obligations—Total 9,512 9,129 9,125 9,604 9,562 8,646 9,448 9,394 17 Within 15 days1 477 93 0 639 697 71 518 529 18 16 days to 90 days 779 779 891 731 631 741 719 631 19 91 days to 1 year 1,443 1,444 1,396 1,396 1,443 1,465 1,394 1,443 20 Over 1 year to 5 years 5,236 5,236 5,303 5,303 5,256 4,781 5,237 5,256 21 Over 5 years to 10 years 1,004 1,004 962 962 962 1,015 1,007 962 22 Over 10 years 573 573 573 573 573 573 573 573 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 July Aug. Sept. Oct. Nov. Debits to demand deposits1 (seasonally adjusted) 11111111 AAAAAAAAllllllllllllllll ccccccccoooooooommmmmmmmmmmmmmmmeeeeeeeerrrrrrrrcccccccciiiiiiiiaaaaaaaallllllll bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 40,297.8 49,775.0 63.013.4 83,356.8 89,723.4 85,571.0 85,705.8 76,946.6 22222222 MMMMMMMMaaaaaaaajjjjjjjjoooooooorrrrrrrr NNNNNNNNeeeeeeeewwwwwwww YYYYYYYYoooooooorrrrrrrrkkkkkkkk CCCCCCCCiiiiiiiittttttttyyyyyyyy bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 15,008.7 18,512.7 25.192.5 37,282.6 41.877.2 37,477.2 37,144.3 29,184.0 33333333 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 25,289.1 31,262.3 37,820.9 46,074.2 47.846.3 48,093.8 48,561.5 47,762.6 Debits to savings deposits2 (not seasonally adjusted) 44444444 AAAAAAAATTTTTTTTSSSSSSSS////////NNNNNNNNOOOOOOOOWWWWWWWW33333333 17.1 83.3 158.4 798.2 745.0 820.2 833.4 753.3 55555555 BBBBBBBBuuuuuuuussssssssiiiiiiiinnnnnnnneeeeeeeessssssssssssssss44444444 56.7 77.3 93.4 120.6 118.1 122.0 117.2 96.3 66666666 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrrssssssss55555555 359.7 515.2 605.3 605.5 595.5 577.0 581.6 539.7 77777777 AAAAAAAAllllllllllllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss 432.9 675.8 857.2 1,524.3 1,458.6 1,519.2 1,532.2 1,389.2 Demand deposit turnover1 (seasonally adjusted) 88888888 AAAAAAAAllllllllllllllll ccccccccoooooooommmmmmmmmmmmmmmmeeeeeeeerrrrrrrrcccccccciiiiiiiiaaaaaaaallllllll bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 139.4 163.5 201.6 296.1 316.8 303.3 303.4 274.0 99999999 MMMMMMMMaaaaaaaajjjjjjjjoooooooorrrrrrrr NNNNNNNNeeeeeeeewwwwwwww YYYYYYYYoooooooorrrrrrrrkkkkkkkk CCCCCCCCiiiiiiiittttttttyyyyyyyy bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 541.9 646.2 813.7 1,288.6 1,338.1 1,204.4 1,174.1 961.7 1111111100000000 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 96.8 113.3 134.3 182.4 189.9 191.6 193.6 190.7 Savings deposit turnover2 (not seasonally adjusted) 1111111111111111 AAAAAAAATTTTTTTTSSSSSSSS////////NNNNNNNNOOOOOOOOWWWWWWWW33333333 7.0 7.8 9.7 14.7 13.5 14.5 14.6 12.8 1111111122222222 BBBBBBBBuuuuuuuussssssssiiiiiiiinnnnnnnneeeeeeeessssssssssssssss44444444 5.1 7.2 9.3 13.2 13.5 14.3 14.1 11.7 1111111133333333 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrrssssssss55555555 1.7 2.7 3.4 3.9 3.9 3.9 3.9 3.6 1111111144444444 AAAAAAAAllllllllllllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss 1.9 3.1 4.2 6.9 6.7 7.1 7.2 6.4 1. Represents accounts of individuals, partnerships, and corporations, and of NOTE. Historical data for the period 1970 through June 1977 have been estimated; states and political subdivisions. these estimates are based in part on the debits series for 233 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 Item DD 1199 ee 77 cc 77 .. DD 1199 ee 77 cc 88 .. DD 1199 ee 77 cc 99 .. DD 1199 ee 88 cc 00 .. July Aug. Sept. Oct. Nov. Seasonally adjusted MEASURES1 1 Ml 336.4 364.2 390.5 415.6 430.1 432.8 431.8 433.0 437.9 2 M2 1,296.4 1,404.2 1,525.2 1,669.4 1,760.1 1,777.2 1,786.8 L,798.9R 1,824.7 3 M3 1,462.5 1,625.9 1,775.6 1,965.1 2,094.0 2,117.5 2,133.7 2,144.2 2,168.4 4 L2 1,722.7 1,936.8 2,151.7 2,378.4 2,519.4 2,550.8R 2,574.4 n.a. n.a. COMPONENTS 5 Currency 88.6 97.4 106.1 116.1 120.8 121.2 121.1 121.4 122.1 6 Traveler's checks3 3.1 3.5 3.8 4.2 4.1 4.4 4.5 4.5 4.6 7 Demand deposits 239.7 253.9 262.8 267.4 236.4 236.7 234.4 234.7 235.9 8 Other checkable deposits7 5.0 9.4 17.8 28.1 69.0 70.8 72.2 72.8 75.6 9 Savings deposits4 486.5 475.5 416.5 393.0 349.1 340.7 334.5 329.6R 331.2 10 Small-denomination time deposits5 453.8 533.3 652.7 756.8 811.3 821.9 830.7 841.1 849.4 11 Large-denomination time deposits6 145.1 194.0 219.7 256.8 290.3 296.6 299.9 298.9' 295.9 Not seasonally adjusted MEASURES1 12 Ml 345.1 373.6 400.6 425.9 432.9 431.3 432.3 435.2' 440.5 13 M2 1,299.0 1,409.0 1,531.3 1,675.2 1,765.0 1,773.5 1,783.5 1,800.8' 1,822.4 14 M3 1,467.7 1,634.8 1,786.0 1,975.6 2,094.6 2,110.8 2,128.1 2,145.4 2,169.5 15 L2 1,726.7 1,943.9 2,159.4 2,385.0 2,518.3 2,542.4' 2,567.7 n.a. n.a. COMPONENTS 16 Currency 90.3 99.4 108.3 118.4 121.4 121.4 121.0 121.4 123.1 17 Traveler's checks3 2.9 3.3 3.5 3.9 4.7 4.8 4.7 4.5 4.3 18 Demand deposits 247.0 261.5 270.8 275.4 237.4 234.5 234.4 236.1 237.4 19 Other checkable deposits7 5.0 9.4 18.2 28.3 69.7 70.8 72.6 73.6' 76.1 20 Overnight RPs and Eurodollars8 18.6 23.9 25.4 32.4 39.2 40.2 36.7 32.8'' 33.6 21 Money market mutual funds 3.8 10.3 43.6 75.8 134.3 145.4 157.0 166.4 176.6 22 Savings deposits4 483.1 472.6 413.9 390.2 352.9 343.7 337.3 332.9' 330.2 23 Small-denomination time deposits5 451.3 531.7 651.4 755.2 809.6 816.8 824.2 837.6 845.4 24 Large-denomination time deposits6 147.7 198.1 223.9 261.4 286.0 293.6 297.6 298.2r 299.3 1. Composition of the money stock measures is as follows: 4. Savings deposits exclude NOW and ATS accounts at commercial banks and Ml: Averages of daily figures for (1) currency outside the Treasury, Federal thrift institutions and CUSDS at credit unions. Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of non- 5. Small-denomination time deposits are those issued in amounts of less than bank issuers; (3) demand deposits at all commercial banks other than those due $100,000. to domestic banks, the U.S. government, and foreign banks and official institutions 6. Large-denomination time deposits are those issued in amounts of $100,000 less cash items in the process of collection and Federal Reserve float; and (4) or more and are net of the holdings of domestic banks, thrift institutions, the U.S. negotiable order of withdrawal (NOW) and automatic transfer service (ATS) ac- government, money market mutual funds, and foreign banks and official institucounts at banks and thrift institutions, credit union share draft accounts (CUSD), tions. and demand deposits at mutual savings banks. 7. Includes ATS and NOW balances at all institutions, credit union share draft M2: Ml plus savings and small-denomination time deposits at all depository balances, and demand deposits at mutual savings banks. institutions, overnight repurchase agreements at commercial banks, overnight Eu- 8. Overnight (and continuing contract) RPs are those issued by commercial rodollars held by U.S. residents other than banks at Caribbean branches of member banks to the nonbank public, and overnight Eurodollars are those issued by Cabanks, and money market mutual fund shares. ribbean branches of member banks to U.S. nonbank customers. M3: M2 plus large-denomination time deposits at all depository institutions and term RPs at commercial banks and savings and loan associations. NOTE. Latest monthly and weekly figures are available from the Board's H.6(508) 2. L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents release. Back data are available from the Banking Section, Division of Research other than banks, bankers acceptances, commercial paper, Treasury bills and other and Statistics, Board of Governors of the Federal Reserve System, Washington, liquid Treasury securities, and U.S. savings bonds. D.C. 20551. 3. Outstanding amount of U.S. dollar-denominated traveler's checks of nonbank issuers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic NonfinancialS tatistics • January 1982 1.22 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1981 1978 1979 1980 IItteemm Dec. Dec. Dec. Apr. May June July Aug. Sept. Oct. Nov. Dec. Seasonally Adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 35.21 36. 58 39.19 39.27 39.54 39.35 39.61 39.88 40.62 40.27 40.26 40.80 2 Nonborrowed reserves 34.34 35.11 37.50 37.93 37.31 37.31 37.93 38.46 39.16 39.09 39.60 40.16 3 Required reserves 34.98 36.25 38.72 39.14 39.37 39.10 39.36 39.68 40.29 40.08 40.01 40.49 4 Monetary base4 134.9 145.3 158.2 160.5 161.7 161.6 162.7 163.4 164.0 163.9 164.7 166.1 Not Seasonally Adjusted 5 Total reserves3 35.66 36.97 39.66 39.23 39.23 38.96 39.55 39.39 40.00 40.13 40.25 41.24 6 Nonborrowed reserves 34.80 35.50 37.97 37.89 37.00 36.93 37.87 37.97 38.54 38.94 39.58 40.61 7 Required reserves 35.43 36.65 39.19 39.10 39.05 38.72 39.30 39.19 39.67 39.94 39.99 40.94 8 Monetary base4 137.4 147.9 161.0 159.9 160.8 161.2 163.3 163.2 163.3 163.8 165.6 169.0 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS5 9 Total reserves3 41.68 43.91 40.61 40.29 40.43 40.35 40.92 40.93 40.50 40.62 40.86 41.91 10 Nonborrowed reserves 40.81 42.43 38.92 38.95 38.21 38.32 39.24 39.51 39.05 39.44 40.20 41.27 11 Required reserves 41.45 43.58 40.15 40.16 40.26 40.10 40.67 40.73 40.18 40.43 40.60 41.60 12 Monetary base4 144.6 156.2 162.4 161.6 162.6 163.3 165.4 165.4 163.9 164.3 166.3 169.8 1. Reserves measures from November 1980 to date reflect a one-time increase— 5. Reserves of depository institutions series reflect actual reserve requirement estimated at $550 million to $600 million—in required reserves associated with the Eercentages with no adjustments to eliminate the effect of changes in Regulation reduction of week-end avoidance activities of a few large banks. >, including changes associated with the implementation of the Monetary Control 2. Reserve aggregates include required reserves of member banks and Edge Act Act. Includes required reserves of member banks and Edge Act corporations and, corporations ana other depository institutions. Discontinuities associated with the beginning Nov. 13, 1980, other depository institutions. Under the transitional phaseimplementation of the Monetary Control Act the inclusion of Edge Act corporation in program of the Monetary Control Act of 1980, the net changes in required reserves, and other changes in Regulation D have been removed. reserves of depository institutions have been as follows: effective Nov. 13, 1980, 3. Reserve balances with Federal Reserve Banks (which exclude required clear- a reduction of $2.8 billion; Feb. 12, 1981, an increase of $245 million; Mar. 12, ing balances) plus vault cash at institutions with required reserve balances plus 1981, an increase of $75 million; May 14, 1981, an increase of $245 million; Aug. vault cash equal to required reserves at other institutions. 13, 1981, an increase of $245 million; Sept. 3, 1981, a reduction of $1.3 billion; 4. Includes reserve balances and required clearing balances at Federal Reserve and Nov. 19, 1981, an increase of $220 million. Banks in the current week plus vault cash held two weeks earlier used to satisfy reserve requirements at all depository institutions plus currency outside the U.S. NOTE. Latest monthly and weekly figures are available from the Board's H.3(502) Treasury, Federal Reserve Banks, the vaults of depository institutions, and surplus statistical release. Back data and estimates of the impact on required reserves and vault cash at depository institutions. changes in reserve requirements are available from the Banking 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

Monetary Aggregates A15 1.23 LOANS AND SECURITIES All Commercial Banks1 Billions of dollars; averages of Wednesday figures 1981 1981 rc ategory D 19 e 7 c 8 . D 19 e 7 c 9 . D 19 e 8 c 0 . D 19 e 7 c 8 . D 19 e 7 c 9 . D 19 e 8 c 0 . Oct Nov. Oct. Nov. Seasonally adjusted Not seasonally adjusted 1 Total loans and securities2 1,013.43 1.134.64 1,237.0s 1,326.9 1,330.4 I,022.53 L145.04 1,248.7s 1,328.9 1,332.7 2 U.S. Treasury securities 93.3 93.8 110.6 117.1 113.3 94.5 95.0 112.1 114.4 112.1 3 Other securities 173.23 191.8 213.9 227.1 230.3 173.93 192.6 214.8 227.3 230.5 4 Total loans and leases2 746.93 848.94 912.5s 982.7 986.8 754.23 857.44 921.85 987.1 990.0 5 Commercial and industrial loans 246.I6 291.14 324.95 361.7 362.4 47.76 293.04 327.15 361.4 362.3 6 Real estate loans 210.5 241.34 260.65 278.9 280.2 210.9 241.84 261.1s 280.3 281.6 7 Loans to individuals 164.7 184.9 175.2 174.2 n.a. 165.6 186.0 176.2 176.1 175.4 8 Security loans 19.3 18.6 17.6 18.7 20.3 20.6 19.8 18.8 18.9 20.8 9 Loans to nonbank financial institutions .. 27.18 28.84 28.75 29.2 29.3 27.6s 29.34 29.2s 29.3 29.4 10 Agricultural loans 28.2 31.1 31.6 33.0 33.1 28.1 30.9 31.4 33.4 33.2 11 Lease financing receivables 7.5 9.3 10.9 12.6 12.7 7.5 9.3 10.9 12.6 12.7 12 All other loans 43.63 44.0 63.0 74.5 74.8 46.23 47.3 67.1 75.1 74.6 MEMO: 13 Total loans and securities plus loans sold2'9 . 11,,001177..1133 11,,113377..66"" 1100 1,239.8s 1,329.6 1,333.1 1,026.2' UU4488..0044 1100 1,251.4s 1,331.6 1,335.4 14 Total loans plus loans sold2'9 750.63 851.94'10 915.2s 985.4 989.5 757.93 860.44'10 924.5s 989.8 992.8 15 Total loans sold to affiliates9 3.7 3.08-10 2.7 2.7 2.7 3.7 3.08'10 2.7 2.7 2.7 16 Commercial and industrial loans plus loans sold9 248.06,11 293.i4.io 326.75 363.7 364.5 249.66.il 295.04-10 328.95 363.5 364.5 17 Commercial and industrial loans sold9 ... 1.911 2.010 1.8 2.0 2.1 1.9" 2.010 1.8 2.0 2.1 18 Acceptances held 6.6 8.2 8.2 9.4 9.0 7.3 9.1 8.8 9.2 9.2 19 Other commercial and industrial loans... 239.5 282.9 316.8 352.3 353.4 240.4 283.9 318.3 352.2 353.2 20 To U.S. addressees12 226.0 264.1 295.2 325.2 327.1 225.9 264.1 295.2 325.5 326.6 21 To non-U.S. addressees 13.5 18.8 21.6 27.1 26.3 14.5 19.8 23.1 26.8 26.6 22 Loans to foreign banks 21.5 18.5 23.2 24.2 23.4 23.2 20.0 24.9 23.7 22.9 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 Domestic NonfinancialS tatistics • January 1982 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS' Monthly averages, billions of dollars December outstanding Outstanding in 1981 SSoouurrccee 1978 1979 1980 Mar. Apr. May June July Aug. Sept. Oct. Nov. Total nondeposit funds 1 Seasonally adjusted2 91.2 121.1 121.7 119.2 112.5 120.1 123.8 122.8 124.7 122.5 119.0r 119.3 2 Not seasonally adjusted 90.2 119.8 121.1 118.9 112.0 124.4 124.6 123.5 127.7 126.6 119.9r 122.9 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 80.7 90.0 110.8 112.9 110.5 108.8 115.5 114.6 112.2 111.0 \\2.V 113.6 4 Not seasonally adjusted 79.7 88.7 110.2 112.7 110.1 113.1 116.2 115.3 115.2 115.2 112.9R 117.2 5 Net balances due to foreign-related institutions, not seasonally adjusted 6.8 28.1 8.2 3.5 -0.7 8.5 5.5 5.5 9.9 8.7 4.3' 2.9 6 Loans sold to affiliates, not seasonally adjusted4-5 3.7 3.0 2.7 2.8 2.7 2.8 2.9 2.7 2.6 2.7 2.7 2.7 MEMO 7 Domestically chartered banks net positions with own foreign branches, not seasonally adjusted6 -10.2 6.5 -14.7 -17.0 -21.3 -13.6 -14.6 -14.6 -10.2 -12.3 -15.4 -15.1 8 Gross due from balances 24.9 22.8 37.5 38.8 43.0 43.4 42.5 45.0 43.7 44.5 45.5 47.9 9 Gross due to balances 14.7 29.3 22.8 21.8 21.7 29.8 27.8 30.4 33.5 32.2 30.1 32.8 10 Foreign-related institutions net positions with directly related institutions, not seasonally adjusted7 17.0 21.6 22.9 20.5 20.5 22.1 20.1 20.2 20.1 21.0 19.7 18.0 11 Gross due from balances 14.3 28.9 32.5 31.9 33.8 34.9 35.6 33.8 33.9 35.0 33.8 34.1 12 Gross due to balances 31.3 50.5 55.4 52.4 54.3 57.0 55.7 53.9 54.0 56.0 53.4 52.1 Security RP borrowings 13 Seasonally adjusted" 45.0 49.7 65.0 68.2 68.3 65.7 72.4 71.4 68.8 67.2 69.3r 69.2 14 Not seasonally adjusted 43.8 48.4 63.3 66.8 66.8 69.0 72.0 71.0 70.7 70.2 69.1'" 71.7 U.S. Treasury demand balances9 15 Seasonally adjusted 8.7 8.9 8.4 11.7 12.3 14.2 10.9 11.8 9.1 8.8 12.2r 11.9 16 Not seasonally adjusted 10.3 9.7 9.0 10.3 12.1 12.3 12.4 10.7 7.4 11.1 13.4' 9.7 Time deposits, $100,000 or more10 17 Seasonally adjusted 213.0 227.1 265.8 281.1 284.3 294.8 303.6 312.4 321.9 324.7 323.5' 320.2 18 Not seasonally adjusted 217.9 232.8 272.4 285.9 283.7 293.6 298.4 304.6 314.5 319.8 322.2r 324.0 1. Commercial banks are those in the 50 states and the District of Columbia foreign sources and federal reserve banks and federal funds purchased from federal with national or state charters plus agencies and branches of foreign banks. New agencies. York investment companies majority owned by foreign banks, and Edge Act cor- 4. Loans initially booked by the bank and later sold to affiliates that are still porations owned by domestically chartered and foreign banks. held by affiliates. Averages of Wednesday data. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from 5. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million due to nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. In- corrections of two New York City banks. cludes averages of Wednesday data for domestically chartered banks and averages 6. Averages of daily figures for member and nonmember banks. Before October of current and previous month-end data for foreign-related institutions. 1980 nonmember banks were interpolated from quarterly call report data. 3. Other borrowings are borrowings on any instrument, such as a promissory 7. Includes averages of current and previous month-end data until August 1979; note or due bill, given for the purpose of borrowing money for the banking business. beginning September 1979 averages of daily data. This includes borrowings from Federal Reserve Banks and from foreign banks, 8. Based on daily average data reported by 122 large banks beginning February term federal funds, overdrawn due from bank balances, loan RPs, and participa- 1980 and 46 banks before February 1980. tions in pooled loans. Includes averages of daily figures for member banks and 9. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at averages of current and previous month-end data for foreign-related institutions. commercial banks. Averages of daily data. After October 1980, movement in federal funds, RPs, and other borrowings from 10. Averages of Wednesday figures. 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 Apr/ Mayr Juner July' Aug/ Sept/ Oct/ DOMESTICALLY CHARTERED COMMERCIAL BANKS1 1 Loans and securities, excluding interbank 1,168.0 1.170.4 1.188.7 1,195.5 1,206.1 1,214.1 1,221.3 1,242.5 1,239.9 1,249.4 2 Loans, excluding interbank 840.9 842.6 857.5 864.5 874.2 881.2 888.7 906.2 902.9 912.8 3 Commercial and industrial 278.2 279.8 287.8 290.3 295.4 298.3 301.2 308.5 308.5 312.6 4 Other 562.7 562.8 569.7 574.3 578.8 582.9 587.5 597.8 594.3 600.2 5 U.S. Treasury securities 111.4 110.3 113.1 112.1 113.4 113.1 111.3 109.4 110.0 106.7 6 Other securities 215.7 217.5 218.1 218.8 218.4 219.8 221.4 226.9 227.1 229.9 7 Cash assets, total 162.8 163.9 178.1 175.9 165.7 156.8 168.4 190.2 149.8 162.8 8 Currency and coin 18.5 17.7 18.7 19.3 19.0 19.5 20.0 19.2 19.7 18.3 9 Reserves with Federal Reserve Banks 30.4 31.8 38.3 25.2 25.4 27.0 25.4 26.8 25.3 26.1 10 Balances with depository institutions . 51.8 51.3 53.7 57.7 56.8 52.7 61.4 68.9 49.3 52.0 11 Cash items in process of collection ... 62.1 63.1 73.5 64.5 57.6 61.6 75.4 55.5 66.4 67.4 12 Other assets2 162.9 167.2 163.1 172.2 162.8 168.3 184.5 175.5 194.4 171.1 13 Total assets/total liabilities and capital... 1,493.8 1.501.5 1,534.4 1,544.0 1,533.7 1,558.0 1,617.2 1,565.2 1,606.7 1.537.8 14 Deposits 1,131.2 1,135.7 1,151.2 1,169.3 1,164.6 1,160.0 1,181.3 1,224.4 1,177.1 1,206.0 15 Demand 345.4 345.3 356.8 360.7 350.8 333.7 342.5 378.0 324.0 339.2 16 Savings 213.9 220.1 222.4 220.4 220.0 219.2 217.2 216.7 214.0 217.9 17 Time 571.9 570.3 572.0 588.3 593.8 607.2 621.6 629.7 639.1 648.9 18 Borrowings 164.1 164.8 180.4 156.8 170.3 160.4 164.4 176.9 174.5 179.3 19 Other liabilities 80.6 80.6 81.8 82.5 81.8 86.3 89.8 91.4 89.3 95.2 20 Residual (assets less liabilities) 117.9 120.4 124.4 125.8 127.3 127.0 122.5 124.4 124.3 126.2 MEMO: 21 U.S. Treasury note balances included in borrowing 5.9 7.7 16.8 5.5 17.4 7.2 6.4 15.3 13.9 5.6 22 Number of banks 14,696 14,701 14,713 14,719 14,719 14,719 14,720 14,720 14,740 14,743 ALL COMMERCIAL BANKING INSTITUTIONS3 23 Loans and securities, excluding interbank 1,254.6 1,291.2 1,297.9 1,306.7 1,334.4 1,324.7 1,335.5 24 Loans, excluding interbank 922.8 955.1 960.8 969.8 993.9 983.6 994.7 25 Commercial and industrial 331.6 345.5 350.5 354.3 365.8 361.8 365.6 26 Other 591.3 609.8 610.3 615.5 628.1 621.8 629.1 27 U.S. Treasury securities 112.6 115.8 115.3 113.5 111.6 111.9 108.8 28 Other securities 219.3 220.4 221.8 223.4 228.9 229.2 232.0 29 Cash assets, total 193.2 207.5 187.8 205.2 234.4 165.3 179.3 30 Currency and coin 17.7 19.0 19.5 20.1 19.2 19.7 18.3 31 Reserves with Federal Reserve Banks 32.7 26.5 28.0 26.6 28.6 26.5 27.5 32 Balances with depository institutions . 77.8 94.4 81.4 95.6 109.8 62.4 66.0 33 Cash items in process of collection ... 65.1 67.5 58.9 62.9 76.7 56.6 67.4 34 Other assets2 229.0 238.0 228.4 233.7 250.9 244.0 267.0 35 Total assets/total liabilities and capital... 1,677.0 1,736.9 1,714.1 1,745.6 1,819.8 1,734.0 1,781.7 36 Deposits 1,193.3 1,235.5 1,221.1 1,250.3 1,299.3 1,224.6 1,254.1 37 Demand 371.0 389.3 362.0 378.3 417.3 337.1 352.6 38 Savings 220.4 220.3 219.5 217.5 216.9 214.3 218.1 39 Time 602.0 625.9 639.7 654.5 665.0 673.1 683.4 40 Borrowings 224.4 231.6 218.9 223.5 240.4 236.8 246.2 41 Other liabilities 137.1 140.6 145.2 147.4 153.7 146.4 153.3 42 Residual (assets less liabilities) 122.4 129.4 128.9 124.4 126.3 126.3 128.1 MEMO: 43 U.S. Treasury note balances included in borrowing 7.7 17.4 7.2 6.4 15.3 13.9 5.6 44 Number of banks 15,147 15,189 15,189 15,209 15,212 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 until June 1981; 3. Commercial banking institutions include domestically chartered commercial beginning July 1981, these data are estimates made on the last Wednesday of the banks, branches and agencies of foreign banks, Edge Act and Agreement corpo- month based on a weekly reporting sample of foreign-related institutions and quarterrations, and New York State foreign investment corporations. end condition report data. Revised data result from benchmarking to the December 1980 and March 1981 Quarterly call reports. Revised data for 1980 and 1981 are available from the Banking Section of the Federal Reserve Roard. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 DomesticN onfinancialS tatistics • January 1982 1.26 ALL LARGE WEEKLY REPORTING COMMERCIAL BANKS with Domestic Assets of $750 Million or More on December 31, 1977, Assets and Liabilities Millions of dollars, Wednesday figures 1981 Account Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2P Dec. 9? Dec. 16P Dec. 23P Dec. 3OP 1 Cash items in process of collection 54,236 52,394 52,228 53,083 56,168 54,982 57,555 2 Demand deposits due from banks in the United States 7,378 7,096 7,089 6,458 8,037 6,710 7,646 8,052 3 All other cash and due from depository institutions 35,249 32,342 33,845 33,164 35,271 36,706 35,588 39,147 4 Total loans and securities 595,347 595,550 597,360 598,042 606,494 599,886 606,994 603,250 Securities 5 U.S. Treasury securities 37,523 36,620 36,912 36,605 37,617 38,109 37,846 36,729 6 Trading account 6,291 5,797 6,312 6,232 6,819 7,431 6,852 5,925 7 Investment account, by maturity 31,232 30,824 30,600 30,373 30,798 30,678 30,994 30,804 8 One year or less 9,654 9,495 9,208 9,028 9,184 9,384 9,638 9,599 9 Over one through five years 18,026 17,846 18,096 18,134 18,413 18,141 18,205 18,062 10 Over five years 3,552 3,482 3,295 3,211 3,201 3,153 3,151 3,142 11 Other securities 80,802 79,355 79,402 79,392 81,699 79,973 80,221 80,195 12 Trading account 4,746 3,052 3,107 2,983 5,356 3,636 3,903 3,742 13 Investment account 76,056 76,302 76,295 76,409 76,343 76,337 76,318 76,453 14 U.S. government agencies 16,184 16,273 16,435 16,468 16,467 16,500 16,435 16,367 15 States and political subdivisions, by maturity.. 56,999 57,095 56,963 57,041 56,944 56,907 56,953 57,171 16 One year or less 8,306 8,345 8,328 8,290 8,321 8,236 8,238 8,249 17 Over one year 48,694 48,750 48,635 48,751 48,622 48,672 48,715 48,922 18 Other bonds, corporate stocks and securities.. 2,873 2,935 2,897 2,899 2,933 2,929 2,930 2,916 Loans 19 Federal funds sold1 30,700 34,266 34,280 32,541 33,692 33,140 35,555 32,819 20 To commercial banks 22,358 25,435 25,252 23,233 23,496 22,675 24,619 22,582 21 To nonbank brokers and dealers in securities ... 6,026 6,584 7,370 7,375 8,241 8,134 8,299 7,727 22 To others 2,315 2,247 1,657 1,933 1,955 2,330 2.637 2,510 23 Other loans, gross 458,747 457,744 459,227 461,983 465,990 461,216 465,903 466,019 24 Commercial and industrial 189,692 188,755 189,537 189,923 191,881 191,900 193,579 192,807 25 Bankers acceptances and commercial paper... 3,942 3,779 3,499 3,674 4,760 4,761 4,992 4,540 26 All other 185,750 184,976 186,037 186,248 187,121 187,139 188,587 188,267 27 U.S. addressees 178,473 177,749 178,837 178,887 179,739 180,195 181,693 181,324 28 Non-U.S. addressees 7,277 7,227 7,200 7,362 7,382 6,944 6,894 6,943 29 Real estate 122,767 123,137 123,565 123,742 123,760 123,801 124,408 124,399 30 To individuals for personal expenditures 73,212 73,239 73,292 73,577 73,805 73,898 74,207 74,770 To financial institutions 31 Commercial banks in the United States 7,005 6,833 7,141 7,177 7,721 6,991 7,302 7,248 32 Banks in foreign countries 8,909 9,065 9,134 9,273 9,743 8,569 9,103 8,710 33 Sales finance, personal finance companies, etc 10,233 10,018 10,053 10,102 10,506 10,370 10,303 10,114 34 Other financial institutions 15,796 16,050 15,970 15,903 15,880 15,746 15,923 16,067 35 To nonbank brokers and dealers in securities ... 6,945 6,987 6,434 8,000 8,047 7,246 7,649 8,328 36 To others for purchasing and carrying securities2 2,610 2,645 2,625 2,624 2,626 2,670 2,696 2,666 37 To finance agricultural production 5,877 5,863 5,847 5,781 5,762 5,733 5,699 5,871 38 All other 15,702 15,151 15,628 15,880 16,258 14,290 15,033 15,040 39 LESS: Unearned income 5,905 5,894 5,904 5,911 5,878 5,886 5,893 5,911 40 Loan loss reserve 6,520 6,542 6,556 6,568 6,626 6,665 6.638 6,601 41 Other loans, net 446,322 445,309 446,766 449,504 453,485 448,664 453,372 453,507 42 Lease financing receivables 10,642 10,632 10,680 10,678 10,683 10,683 10,692 10,705 43 All other assets 102,483 99,252 99,886 99,180 105,449 105,009 107,558 108,208 44 Total assets 805,337 797,267 801,089 800,605 822,102 804,946 823,460 826,917 Deposits 45 Demand deposits 181,962 171.489 173,498 172,367 186,250 168,467 183,259 186,179 46 Mutual savings banks 816 631 599 529 647 559 572 505 47 Individuals, partnerships, and corporations 135,051 128,730 128,903 129,427 137,902 127,439 135,408 138,738 48 States and political subdivisions 4,734 4,215 4,462 4.835 5,002 4,277 5,191 5,219 49 U.S. government 3,022 1,236 2,801 1.836 1,114 1,319 2,706 2,191 50 Commercial banks in the United States 21,386 20,438 19,061 19,704 22,158 18,324 21,586 21,295 51 Banks in foreign countries 8,379 7,404 8,093 8,013 9,349 8,271 8,666 8,535 52 Foreign governments and official institutions 1,152 1,561 1,026 875 933 1,597 1,272 1,125 53 Certified and officers' checks 7,422 7,274 8,554 7,148 9,144 6,682 7,858 8,570 54 Time and savings deposits 351,082 351,989 354,118 357,585 357,550 359,404 360,797 362,688 55 Savings 75,987 75,902 75,974 75,729 76,950 77,050 77,146 76,958 56 Individuals and nonprofit organizations 72,484 72,334 72,319 72,054 73,275 73,434 73,541 73,420 57 Partnerships and corporations operated for profit 2,955 2,985 2,957 3,011 3,056 3,071 3,028 2,977 58 Domestic governmental units 523 558 675 634 589 517 550 534 59 All other 25 24 24 30 29 27 26 26 60 Time 275,096 276,087 278,143 281,856 280,600 282,354 283,651 285,730 61 Individuals, partnerships, and corporations ... 241,910 242.490 244,073 246,811 246,067 247,819 248,901 250,533 62 States and political subdivisions 19,490 19,694 19,947 20,302 19,827 19,798 19,803 19,921 63 U.S. government 233 272 270 267 263 249 233 240 64 Commercial banks in the United States 8,585 8,765 8.869 9,419 9,520 9,638 9,737 9,984 65 Foreign governments, official institutions, and banks 4,865 4,983 5,056 4,923 4,849 4,977. 5,052 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 1,385 1,890 1,027 446 200 2,960 660 67 Treasury tax-and-loan notes 4,581 3,417 3,139 3,108 5,118 1,294 6,351 9,096 68 All other liabilities for borrowed money3 135,941 141,940 139,666 136,662 141,447 142,256 141,133 138,691 69 Other liabilities and subordinated notes and debentures 76,482 72,576 75,908 76,859 77,444 76,438 77,925 75,827 70 Total liabilities 751,433 743,302 747,357 747,027 768,009 750,819 769,563 773,141 71 Residual (total assets minus total liabilities)4 53,903 53,965 53,732 53,578 54,093 54,127 53,896 53,776 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 mFoRreA oSn EDRec. 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 AAccccoouunntt Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2P Dec. 9p Dec. 16P Dec. 23p Dec. 30P 1 Cash items in process of collection 51,061 49,330 49,448 49,938 52,999 43,366 51,874 54,274 51,632 ? Demand deposits due from banks in the United 6,585 6,415 6,455 5,883 7,387 6,132 6,981 77,,337722 7,623 3 All other cash and due from depository institutions.. 33,288 30,361 31,728 30,918 33,103 34,592 33,334 36,581 33,663 4 Total loans and securities 555,596 555,890 557,526 558,149 566,141 559,691 566,514 562,934 568,189 U.S. Treasury securities 34,117 33,176 33,532 33,269 34,315 34,825 34,544 33,439 33,643 6 Trading account 6,194 5,690 6,193 6,099 6,701 7,319 6,741 5,828 5,887 7 Investment account, by maturity 27,924 27,486 27,340 27,171 27,614 27,506 27,804 27,611 27,756 8 One year or less 8,723 8,531 8,268 8,092 8,223 8,394 8,642 8,594 8,916 9 Over one through five years 15,960 15,785 16,084 16,168 16,478 16,252 16,304 16,169 16,000 10 Over five years 3,240 3,170 2,987 2,910 2,912 2,859 2,857 2,847 2,840 11 Other securities 74,410 72,937 72,951 72,916 75,230 73,542 73,794 73,776 73,778 17 Trading account 4,660 2,946 2,998 2,858 5,228 3,542 3,801 3,643 3,762 13 Investment account 69,750 69,990 69,952 70,058 70,003 69,999 69,993 70,133 70,015 14 U.S. government agencies 14,990 15,063 15,198 15,236 15,244 15,274 15,230 15,163 15,162 IS States and political subdivision, by maturity .... 52,060 52,170 52,035 52,100 52,005 51,975 52,013 52,234 52,131 16 One year or less 7,493 7,536 7,512 7,476 7,502 7,378 7,374 7,406 7,297 17 Over one year 44,567 44,633 44,523 44,624 44,503 44,597 44,639 44,828 44,834 18 Other bonds, corporate stocks and securities.... 2,700 2,758 2,720 2,722 2,754 2,751 2,750 2,736 2,723 Loans 19 Federal funds sold1 26,809 30,428 30,353 28,577 29,377 28,913 31,303 28,940 31,709 ?0 To commercial banks 19,130 22,190 21,997 19,925 19,681 19,049 20,940 19,273 22,441 71 To nonbank brokers and dealers in securities 5,393 6,024 6,734 6,774 7,791 7,567 7,765 7,230 7,028 ?? To others 2,285 2,214 1,622 1,878 1,905 2,296 2,598 2,436 2,239 23 431,656 430,756 432,120 434,834 438,694 433,930 438,370 438,264 440,435 ?4 Commercial and industrial 180,428 179,540 180,258 180,590 182,543 182,553 184,118 183,229 185,789 75 Bankers acceptances and commercial paper 3,843 3,678 3,378 3,567 4,640 4,642 4,869 4,396 4,147 76 All other 176,586 175,862 176,880 177,023 177,902 177,911 179,249 178,833 181,642 11 U.S. addressees 169,390 168,713 169,762 169,735 170,601 171,045 172,438 171,974 174,966 28 Non-U.S. addressees 7,196 7,150 7,118 7,288 7,302 6,866 6,811 6,858 6,676 ?9 116,017 116,381 116,784 116,957 116,953 116,992 117,555 117,577 117,757 30 To individuals for personal expenditures 64,134 64,164 64,207 64,462 64,608 64,676 64,938 65,440 65,813 To financial institutions 31 Commercial banks in the United States 6,805 6,673 6,982 7,030 7,564 6,834 7,142 77,,006600 66,,886611 32 Banks in foreign countries 8,840 9,000 9,060 9,196 9,652 8,501 9,038 8,627 7,955 33 Sales finance, personal finance companies, etc .. 10,096 9,880 9,913 9,962 10,367 10,232 10,154 9,962 10,669 34 Other financial institutions 15,374 15,624 15,555 15,528 15,480 15,343 15,502 15,654 15,659 35 To nonbank brokers and dealers in securities 6,888 6,933 6,374 7,953 7,995 7,196 7,597 8,276 7,886 36 To others for purchasing and carrying securities2 .. 2,365 2,396 2,372 2,370 2,378 2,419 2,446 2,416 2,559 37 To finance agricultural production 5,730 5,715 5,700 5,638 5,624 5,596 5,566 5,736 5,583 38 All other 14,978 14,450 14,914 15,147 15,531 13,588 14,314 14,288 13,902 39 LESS: Unearned income 5,262 5,250 5,259 5,266 5,242 5,247 5,253 5,271 5,198 40 Loan loss reserve 6,135 6,156 6,170 6,182 6,234 6,271 6,244 6,213 6,178 41 420,259 419,350 420,690 423,386 427,218 422,412 426,873 426,780 429,059 4? Lease financing receivables 10,338 10,322 10,370 10,368 10,372 10,373 10,376 10,382 10,442 43 All other assets 99,651 96,436 97,021 96,398 102,539 102,060 104,496 105,028 105,082 44 Total assets 756,518 748,755 752,548 751,654 772,540 756,213 773,576 776,571 776,632 Deposits 45 Demand deposits 169,824 159,896 161,780 160,398 173,653 156,899 170,547 173,438 174,582 46 Mutual savings banks 780 601 577 512 627 539 550 486 543 47 Individuals, partnerships, and corporations 125,682 119,595 119,751 120,026 127,980 118,204 125,620 128,940 130,346 48 States and political subdivisions 4,222 3,754 3,929 4,231 4,446 3,814 4,526 4,500 4,611 49 U.S. government 2,760 1,145 2,573 1,686 984 1,216 2,427 1,974 1,944 50 Commercial banks in the United States 19,830 18,920 17,653 18,251 20,576 16,908 20,050 19,720 20,308 51 Banks in foreign countries 8,294 7,332 8,016 7,947 9,271 8,201 8,592 8,446 8,074 5? Foreign governments and official institutions 1,151 1,560 1,024 874 931 1,596 1,265 1,113 1,209 53 Certified and officers' checks 7,105 6,989 8,257 6,870 8,837 6,421 7,518 8,258 7,546 54 Time and savings deposits 328,325 329,017 331,163 334,485 334,458 336,173 337,586 339,459 339,879 55 Savings 70,218 70,185 70,242 69,996 71,132 71,204 71,297 71,141 71,328 56 Individuals and nonprofit organizations 66,977 66,880 66,848 66,582 67,722 67,854 67,956 67,858 68,050 57 Partnerships and corporations operated for profit 2,728 22,,775577 2,732 22,,778822 22,,882288 22,,884400 22,,779988 22,,775522 22,,776611 58 Domestic governmental units 488 524 638 602 553 482 516 504 493 59 All other 25 24 24 30 29 27 26 26 24 60 258,107 258,833 260,922 264,489 263,326 264,970 266,289 268,318 268,551 61 Individuals, partnerships, and corporations 226,977 227,376 228,984 231,581 230,971 232,597 233,670 235,280 235,650 6? States and political subdivisions 17,799 17,942 18,198 18,544 18,028 18,012 18,044 18,184 18,156 63 U.S. government 223 262 260 257 253 240 223 230 229 64 Commercial banks in the United States 8,230 8,388 8,496 9,050 9,151 9,272 9,374 9,571 9,443 65 Foreign governments, official institutions, and banks 4,878 4,865 4,983 5,056 4,923 4,849 4,977 5,052 5,073 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 1,385 1,788 1,027 408 200 22,,996600 98 664455 436 67 Treasury tax-and-loan notes , 4,192 3,177 2,836 2,834 4,744 1,182 5,893 8,376 9,211 68 All other liabilities for borrowed money3 127,529 133,572 131,285 128,447 133,345 133,828 132,936 130,458 131,192 69 Other liabilities and subordinated notes and 74,802 70,830 74,191 74,982 75,544 74,524 76,088 73,890 71,386 70 Total liabilities 706,056 698,280 702,282 701,555 721,944 705,566 723,148 726,267 726,687 71 Residual (total assets minus total liabilities)4 50,462 50,476 50,266 50,099 50,597 50,647 50,428 50,305 49,945 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 Digitized for mFoRreA oSn EDRec. 31, 1977, see table 1.13. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic NonfinancialS tatistics • January 1982 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1981 AAccccoouunntt Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2P Dec. 9p Dec. 16p Dec. 23p Dec. 30? 1 Cash items in process of collection 16,826 15,389 16,432 15,516 17,378 14,053 16,463 17,836 17,269 2 Demand deposits due from banks in the United States 1,135 943 1,230 1,141 1,641 1,337 1,356 1,279 1,361 3 All other cash and due from depository institutions.. 8.788 8,324 7,839 7,413 8,566 9,364 9,660 10,444 9,812 4 Total loans and securities' 134,365 134,818 134,876 137,820 137,739 133,801 136,911 134,866 135,997 Securities 6 7 Investment account, by maturity 7.945 7,747 7,629 7,230 7,321 7,001 7,054 7,013 6,907 8 One year or less 1,882 1.848 1,608 1,268 1,240 1,225 1,218 1,218 1,213 9 Over one through five years 5,186 5,077 5,323 5,287 5,402 5,145 5,236 5,194 5,093 10 Over five years 877 822 698 675 679 631 601 601 601 11 P 13 Investment account 14,709 14,757 14,758 14,801 14,816 14,739 14,786 14,862 14,750 14 U.S. government agencies 2.298 2.313 2,370 2,367 2,360 2,360 2,354 2,352 2,353 15 States and political subdivision, by maturity .... 11,630 11.626 11,598 11,640 11,646 11,573 11,598 11,675 11,552 16 One year or less 1.953 1,941 1.941 1,934 1,983 1,907 1,933 2,020 1,964 17 Over one year 9,677 9,685 9,656 9,706 9,663 9,666 9,665 9,654 9,589 18 Other bonds, corporate stocks and securities.... 781 818 790 794 810 806 835 834 844 Loans 19 Federal funds sold3 7,025 8,117 8,463 9,514 8,461 7,796 9,944 8,038 8,215 20 To commercial banks 3.432 4.045 4,668 5,440 3.452 2,943 4,861 3,252 3,825 21 To nonbank brokers and dealers in securities 2,405 2.928 3,045 3,214 4,011 3,565 3,591 3,456 3,289 22 To others 1,187 1,144 750 860 998 1,288 1,492 1,329 1,101 23 Other loans, gross 108.086 107,602 107.438 109,710 110,592 107,741 108,609 108,417 109,585 24 Commercial and industrial 55,118 54,848 54.966 55,032 55,670 55,126 55,086 54,994 56,225 25 Bankers acceptances and commercial paper 1,190 1.082 996 1,116 1,453 1,408 1,411 1,292 1,265 26 All other 53.928 53,766 53,971 53,916 54,217 53,718 53,675 53,701 54,960 7.7 U.S. addressees 51,567 51,445 51,712 51,637 51.936 51,862 51,964 52,090 53,446 28 Non-U.S. addressees 2,362 2.321 2,259 2,279 2.280 1,856 1,711 1,611 1,514 29 Real estate 17,259 17,393 17,403 17,412 17.411 17,362 17,561 17,512 17,528 30 To individuals for personal expenditures 10.744 10.781 10,793 10,838 10,884 10,950 11,012 11,096 11,150 31 To financial institutions Commercial banks in the United States 2,144 1.860 1,988 1,954 2,258 2,113 2,157 1,995 2,001 32 Banks in foreign countries 4.266 4,500 4,380 4,505 4,754 3,735 4,256 3,632 3,467 33 Sales finance, personal finance companies, etc... 4.261 4.062 4.081 4,121 4,352 4,249 4,179 3,948 4,443 34 Other financial institutions 4,573 4,679 4,578 4,652 4,495 4,602 4,562 4,612 4,595 35 To nonbank brokers and dealers in securities 3.867 4,116 3.706 5,321 4,904 4,329 4,640 5,240 5,090 36 To others for purchasing and carrying securities4 .. 614 604 567 580 595 597 616 612 724 37 To finance agricultural production 321 316 318 313 317 322 325 481 277 38 All other 4.917 4,443 4,657 4,982 4,953 4,355 4,213 4,295 4,087 39 LESS: Unearned income 1,339 1,335 1,336 1,350 1,340 1,348 1,364 1,370 1,374 40 Loan loss reserve 2.061 2,070 2,076 2,085 2,112 2,127 2,118 2,092 2,086 41 Other loans, net 104,686 104,197 104,026 106,275 107,140 104,266 105,126 104,954 106,126 42 Lease financing receivables 2,264 2,249 2,260 2,260 2,254 2,251 2,252 2,250 2,258 43 All other assets5 44,491 40,653 41,490 38,732 45,660 42,457 42,852 43,354 43,264 44 Total assets 207,869 202,377 204,128 202,883 213,238 203,263 209,495 210,029 209,961 Deposits 45 Demand deposits 52.864 47,556 49,338 48,174 53,959 45,717 51,352 53,401 52,326 46 Mutual savings banks 377 300 279 246 318 277 265 215 268 47 Individuals, partnerships, and corporations 34,936 31.202 31,922 31,742 34,980 29,751 32,972 35,143 34,733 48 States and political subdivisions 353 366 363 410 598 424 587 494 424 49 U.S. government 543 327 695 474 152 379 680 507 500 50 Commercial banks in the United States 5,861 4,990 4,297 4,879 5,391 4,044 5,309 4,824 5,434 51 Banks in foreign countries 6,698 5,733 6,398 6,356 7,549 6,626 6,840 6,790 6,387 52 Foreign governments and official institutions 916 1,294 757 693 714 1,334 1,011 848 919 53 Certified and officers' checks 3,180 3,342 4,626 3,374 4,257 2,883 3,688 4,581 3,661 54 Time and savings deposits 63,839 63,538 64,060 66,004 66,995 67,033 67,278 67,310 66,460 55 Savings 9,143 9,200 9,261 9,224 9,278 9,263 9,346 9,260 9,323 56 Individuals and nonprofit organizations 8,785 8,814 8,818 8,801 8,905 8,896 8,984 8,910 8,970 57 Partnerships and corporations operated for profit 245 249 251 252 256 259 255 249 256 58 Domestic governmental units 111 135 190 168 114 105 104 99 94 59 All other 2 2 2 3 3 3 3 3 2 60 Time 54,696 54,338 54,798 56,780 57,717 57,771 57,932 58,050 57,137 61 Individuals, partnerships, and corporations 47,523 47,179 47,532 48,974 49,862 49,753 49,810 49,848 49,051 62 States and political subdivisions 2,101 2,053 2,029 2.178 2,141 2,135 2,139 2,098 2,073 63 U.S. government 37 38 26 19 18 18 21 25 25 64 Commercial banks in the United States 2,606 2.646 2,762 3,157 3,303 3,460 3,487 3,573 3,504 65 Foreign governments, official institutions, and banks 2,429 2,422 2,449 2,451 2,393 2,404 2,476 2,506 22,,448844 Liabilities for borrowed money 66 1,175 950 170 200 2,145 67 Treasury tax-and-loan notes 1,038 913 696 852 1,338 229 1,810 2,654 2,856 68 All other liabilities for borrowed money6 41,418 45,684 42,523 40,183 41,705 41,551 40,981 39,469 42,004 69 Other liabilities and subordinated notes and debentures 30,615 27,731 29,817 30,810 32,097 29,473 31,088 30,241 29,678 70 Total liabilities 190,948 185,422 187,385 186,192 196,295 186,148 192,509 193,076 193,323 71 Residual (total assets minus total liabilities)7 16.921 16,956 16,743 16,691 16,943 17,115 16,986 16,953 16,638 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 Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2P Dec. 9P Dec. 16p Dec. 23P Dec. 30? BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and securities adjusted' 578,410 575,717 577,427 580,111 587,782 582,771 587,604 585,932 588,376 2 Total loans (gross) adjusted1 460,084 459,742 461,113 464,114 468,465 464,689 469,537 469,008 471,234 3 Demand deposits adjusted2 103,317 97,420 99,408 97,743 106,810 102,873 103,984 105,137 108,693 4 Time deposits in accounts of $100,000 or more 178,331 179,062 180,806 184,236 182,731 184,355 185,678 187,870 187,988 5 Negotiable CDs 128,105 128,021 129,344 132,638 131,760 133,362 134,955 137,033 137,514 6 Other time deposits 50,226 51,041 51,462 51,598 50,972 50,993 50,722 50,838 50,474 7 Loans sold outright to affiliates3 2,703 2,756 2,712 2,749 2,786 2,742 2,848 2,824 2,848 8 Commercial and industrial 2,059 2,136 2,089 2,124 2,145 2,095 2,196 2,175 2,210 9 Other 644 620 623 624 641 647 652 649 638 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and securities adjusted1 541,057 538,433 539,976 542,642 550,372 545,326 549,929 548,085 550,262 11 Total loans (gross) adjusted1 432,529 432,321 433,493 436,456 440,827 436,960 441,590 440,870 442,842 12 Demand deposits adjusted2 96,173 90,501 92,106 90,523 99,094 95,408 96,196 97,470 100,698 13 Time deposits in accounts of $100,000 or more 168,932 169,450 171,213 174,514 173,114 174,657 175,993 178,134 178,308 14 Negotiable CDs 121,716 121,468 122,847 126,063 125,307 126,842 128,458 130,485 130,964 15 Other time deposits 47,216 47,982 48,366 48,452 47,807 47,815 47,534 47,648 47,344 16 Loans sold outright to affiliates3 2,618 2,672 2,626 2,659 2,704 2,661 2,775 2,747 2,771 17 Commercial and industrial 1,991 2,069 2,021 2,052 2,080 2,031 2,140 2,114 2,150 18 Other 627 603 605 607 623 630 635 633 621 BANKS IN NEW YORK CITY 19 Total loans (gross) and securities adjusted1-4 132,188 132,318 131,632 133,862 135,481 132,220 133,376 133,082 133,630 20 Total loans (gross) adjusted1 109,534 109,814 109,245 111,830 113,343 110,481 111,535 111,207 111,973 21 Demand deposits adjusted2 29,634 26,849 27,914 27,304 31,038 27,242 28,899 30,234 29,122 22 Time deposits in accounts of $100,000 or more 42,651 42,189 42,537 44,467 45,341 45,324 45,504 45,636 44,768 23 Negotiable CDs 31,577 30,972 31,169 33,134 34,226 34,249 34,577 34,835 34,028 24 Other time deposits 11,074 11,217 11,368 11,333 11,115 11,075 10,927 10,801 10,740 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 • January 1982 1.291 LARGE WEEKLY REPORTING BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities Millions of dollars, Wednesday figures Account Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2P Dec. 9p Dec. 16 P Dec. 23 P Dec. 30P 1 Cash and due from depository institutions 7,078 7,142 7,316 7,774 8,046 6,587 7,285 6,772 6,545 2 Total loans and securities 62,529 63,397 64,513 64,773 65,226 52,756 51,311 50,832 51,154 3 U.S. Treasury securities 1,467 1,581 1,471 1,639 1,856 1,965 1,833 22,,222233 2,196 4 5 F O e t d h e e r r a s l e f c u u n ri d t s i e s s o ld1 4 1, , 0 36 39 8 4 1, , 0 5 4 16 8 4 1, , 0 2 2 9 2 1 4 1, ,6 0 0 51 6 4 1, , 0 8 4 5 5 7 4,0 8 8 7 2 1 4,0 8 3 6 2 3 4,8 88 4 22 4 88 5,0 8 7 0 0 1 6 To commercial banks in U.S 3,831 3,916 3,868 4,220 4,364 3,631 3,615 4,474 4,442 7 To others 536 600 422 387 494 450 418 370 628 8 Other loans, gross 55,656 56,252 57,729 57,477 57,468 45,837 44,583 42,936 43,087 9 Commercial and industrial 26,892 27,322 27,472 27,287 27,906 21,632 21,454 20,444 20,439 10 Bankers acceptances and commercial paper 3,703 3,622 3,589 3,518 3,593 3,586 3,798 3,681 3,791 11 Allother 23,188 23,699 23,883 23,769 24,313 18,047 17,656 16,763 16,648 12 U.S. addressees 13,362 13,787 13,837 13,726 14,205 13,848 14,075 13,683 13,947 13 Non-U.S. addressees 9,827 9,913 10,046 10,044 10,108 4,199 3,581 3,080 2,701 14 To financial institutions 20,260 20,570 21,640 21,526 20,992 18,121 17,469 17,462 17,504 15 Commercial banks in U.S 12,862 13,320 14,179 13,958 13,358 13,610 13,334 13,613 13,683 16 Banks in foreign countries 7,061 6,921 7,136 7,226 7,296 4,171 3,796 3,506 3,452 17 Nonbank financial institutions 337 330 325 341 339 340 339 343 370 18 For purchasing and carrying securities .. 766 824 723 676 683 631 637 629 687 19 Allother 7,737 7,535 7,894 7,988 7,886 5,452 5,023 4,400 4,456 20 Other assets (claims on nonrelated parties) 11,407 11,564 11,971 11,956 12,091 12,128 12,134 12,268 12,202 21 Net due from related institutions 9,584 9,748 9,979 9,792 9,770 11,914 11,872 12,124 12,639 22 Total assets 90,598 91,851 93,779 94,295 95,133 83,385 82,603 81,995 82,540 23 Deposits or credit balances2 24,260 25,412 24,968 25,616 25,297 24,358 24,486 25,085 25,302 24 Credit balances 295 323 467 382 348 305 372 337 320 25 Demand deposits 2,256 2,366 2,488 2,504 2,501 2,490 2,415 2,628 2,379 26 Individuals, partnerships, and corporations 855 792 892 887 873 860 886 883 895 27 Other 1,401 1,573 1,596 1,617 1,628 1,630 1,530 1,745 1,484 28 Total time and savings 21,708 22,724 22,013 22,730 22,447 21,562 21,698 22,120 22,603 29 Individuals, partnerships, and corporations 18,198 18,809 18,013 18,618 18,312 18,003 18,082 18,450 18,876 30 Other 3,510 3,914 4,000 4,112 4,135 3,559 3,616 3,670 3,727 31 Borrowings3 32,158 32,922 34,617 34,171 34,900 32,623 31,864 31,351 31,573 32 Federal funds purchased4 5,980 6,056 7,136 6,261 7,856 6,534 6,603 5,923 5,666 33 From commercial banks in U.S 5,221 4,920 6,071 5,356 6,872 5,729 5,746 4,922 4,568 34 From others 758 1,135 1,065 905 984 805 857 1,001 1,097 35 Other liabilities for borrowed money ... 26,178 26,866 27,481 27,910 27,044 26,089 25,260 25,428 25,907 36 To commercial banks in U.S 22,072 22,608 23,129 23,409 22,741 23,138 22,743 22,756 23,242 37 To others 4,106 4,258 4,352 4,501 4,303 2,951 2,517 2,672 2,665 38 Other liabilities to nonrelated parties 11,481 11,744 12,176 12,242 12,395 12,172 12,090 12,331 12,296 39 Net due to related institutions 22,698 21,773 22,019 22,265 22,541 14,231 14,163 13,228 13,369 40 Total liabilities 90,598 91,851 93,779 94,295 95,133 83,385 82,603 81,995 82,540 MEMO 41 Total loans (gross) and securities adjusted' 45,835 46,161 46,466 46,595 47,505 35,514 34,363 32,744 33,030 42 Total loans (gross) adjusted5 43,330 43,532 43,973 43,905 44,604 32,678 31,666 29,693 30,032 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 Aug. 26 Sept. 30 Oct. 28 Nov. 25 Dec. 30P Q3 Q4P Oct. Nov. Dec./' 1 Durable goods manufacturing 25,629 26,111 25,910 25,570 26,867 837 756 -201 -339 1,297 2 Nondurable goods manufacturing 22,478 23,400 22,060 22,190 21,725 2,782 -1,675 -1,340 130 -464 3 Food, liquor, and tobacco 4,392 4,431 4,310 4,282 4,190 26 -241 -120 -29 -92 4 Textiles, apparel, and leather 5,068 5,076 4,859 4,652 4,166 156 -910 -217 -208 -485 5 Petroleum refining 3,587 3,955 3,722 4,769 4,836 543 881 -234 1,048 67 6 Chemicals and rubber 5,500 5,749 5,056 4,624 4,341 1,700 -1,408 -693 -431 -283 7 Other nondurable goods 3.931 4,189 4,113 3,863 4,192 356 3 -76 -250 329 8 Mining (including crude petroleum and natural gas) 20,019 21,283 21,729 22,940 24,371 3,088 3,089 446 1,121 1,431 9 Trade 26,406 27,004 27,486 28,180 28,010 897 1,006 482 694 -170 10 Commodity dealers 1.659 1,657 1,666 1,901 2,292 158 634 8 235 390 11 Other wholesale 12,377 12,634 12,636 12,791 12,919 546 285 2 155 128 12 Retail 12,370 12,713 13,184 13,488 12,800 193 86 471 304 -688 13 Transportation, communication. and other public utilities 21,418 21,866 21,723 22,025 23,190 1,042 1,324 -143 302 1,165 14 Transportation 8,283 8,465 8.416 8,288 8,625 269 160 -49 -128 338 15 Communication 3,580 3,534 3,573 3,701 3,954 -7 419 38 128 253 16 Other public utilities 9,555 9,866 9,734 10,037 10,611 780 745 -133 303 574 17 Construction 7,132 7,248 7,164 7,138 7,194 264 -53 -84 -26 56 18 Services 24,774 25,340 25,426 25,600 26,484 794 1,145 86 174 884 19 All other2 15,562 15,818 15,962 16.091 17,122 641 1,304 144 129 1,031 20 Total domestic loans 163,418 168,069 167,460 169,735 174,966 10,345 6,896 -610 2,275 5,231 21 MEMO: Term loans (original maturity more than 1 year) included in domestic loans 86,147 86,137 84,630 83,834 84,973 2,734 -1,164 -1,507 -796 1,139 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 NonfinancialS tatistics • January 1982 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1 Billions of dollars, estimated daily-average balances Commercial banks TTyyppee ooff hhoollddeerr 1980 1981 11997777 11997788 1199779922 DDeecc.. DDeecc.. DDeecc.. Mar. June Sept. Dec. Mar.3 June4 Sept. 1 All holders—Individuals, partnerships, and corporations 274.4 294.6 302.2 288.4 288.6 302.0 315.5 280.8 277.5 2 Financial business 25.0 27.8 27.1 28.4 27.7 29.6 29.8 30.8 28.2 3 Nonfinancial business 142.9 152.7 157.7 144.9 145.3 151.9 162.3 144.3 148.6 4 Consumer 91.0 97.4 99.2 97.6 97.9 101.8 102.4 86.7 n.a. 82.1 5 Foreign 2.5 2.7 3.1 3.1 3.3 3.2 3.3 3.4 3.1 6 Other 12.9 14.1 15.1 14.4 14.4 15.5 17.2 15.6 15.5 Weekly reporting banks 1980 1981 11997777 11997788 1199779955 DDeecc.. DDeecc.. DDeecc.. Mar. June Sept. Dec. Mar.3 June4 Sept. 7 All holders—Individuals, partnerships, and corporations 139.1 147.0 139.3 133.6 133.9 140.6 147.4 133.2 131.3 8 Financial business 18.5 19.8 20.1 20.1 20.2 21.2 21.8 21.9 20.7 9 Nonfinancial business 76.3 79.0 74.1 69.1 69.2 72.4 78.3 69.8 71.2 10 Consumer 34.6 38.2 34.3 34.2 33.9 36.0 35.6 30.6 n.a. 28.7 11 Foreign 2.4 2.5 3.0 3.0 3.1 3.1 3.1 3.2 2.9 12 Other 7.4 7.5 7.8 7.2 7.5 7.9 8.6 7.7 7.9 1. Figures include cash items in process of collection. Estimates of gross deposits 4. Demand deposit ownership survey estimates for June 1981 are not yet available are based on reports supplied by a sample of commercial banks. Types of depositors due to unresolved reporting errors. in each category are described in the June 1971 BULLETIN, p. 466. 5. After the end of 1978 the large weekly reporting bank panel was changed to 2. Beginning with the March 1979 survey, the demand deposit ownership survey 170 large commercial banks, each of which had total assets in domestic offices sample was reduced to 232 banks from 349 banks, and the estimation procedure exceeding $750 million as of Dec. 31, 1977. See "Announcements," p. 408 in the was modified slightly. To aid in comparing estimates based on the old and new May 1978 BULLETIN. Beginning in March 1979, demand deposit ownership estireporting sample, the following estimates in billions of dollars for December 1978 mates for these large banks are constructed quarterly on the basis of 97 sample have been constructed using the new smaller sample; financial business, 27.0; banks and are not comparable with earlier data. The following estimates in billions nonfinancial business, 146.9; consumer, 98.3; foreign, 2.8; and other, 15.1. of dollars for December 1978 have been constructed for the new large-bank panel; 3. Demand deposit ownership data for March 1981 are subject to greater than financial business, 18.2; nonfinancial business, 67.2; consumer, 32.8; foreign, 2.5; normal errors reflecting unusual reporting difficulties associated with funds shifted other, 6.8. to NOW accounts authorized at year-ena 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 Instrument 1977 1978 19791 1980 Dec. Dec. Dec. Dec. May June July Aug. Sept. Oct. Nov. Commercial paper (seasonally adjusted) 1 All issuers 65,051 83,438 112,087 123,597 139,228 145,737 151,013 157,121 165,379 164,026 164,349 Financial companies2 Dealer-placed paper3 2 Total 8,796 12,181 17,161 19,236 24,144 25,933 26,006 27,813 30,213 28,909 28,745 3 Bank-related 22,,113322 33,,552211 22,,887744 33,,556611 44,,880000 44,,775500 55,,226677 66,,003377 66,,116611 55,,662266 55,,772255 Directly placed paper4 4 Total 40,574 51,647 64,748 67,888 71,842 74,952 79,571 80,769 83,311 83,053 82,290 5 Bank-related 7,102 12,314 17,598 22,382 23,880 24,107 26,104 25,153 26,426 25,397 26,224 6 Nonfinancial companies5 15,681 19,610 30,178 36,473 43,242 44,852 45,436 48,539 51,855 52,064 53,314 Bankers dollar acceptances (not seasonally adjusted) 7 Total 25,450 33,700 45,321 54,744 60,551 63,427 63,721 64,577 65,048 66,072 Holder 8 Accepting banks 10,434 8,579 9,865 10,564 10,132 11,595 10,505 9,959 10,022r 10,511 9 Own bills 8,915 7,653 8,327 8,963 9,049 10,207 9,437 9,214 9,040r 9,522 10 Bills bought 1,519 927 1,538 11,,660011 11,,008822 1,389 11,,006688 745 982 989 Federal Reserve Banks 11 Own account 954 1 704 776 0 0 453 0 0 0 n a. 12 Foreign correspondents 362 664 1,382 1,791 1,255 1,272 1,459 1,451 1,243r 1,428 13 Others 13,700 24,456 33,370 41,614 49,164 50,560 51,303 53,167 53,783 54,133 Basis 14 Imports into United States 6,378 8,574 10,270 11,776 12,775 12,996 13,059 13,313 37,542r 37,391 15 Exports from United States 5,863 7,586 9,640 12,712 13,057 13,388 13,296 13,774 13,514r 13,981 16 All other 13,209 17,540 25,411 30,257 34,768 37,043 37,365 37,490 37,542 37,391 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 • January 1982 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Effective date Rate Effective Date Rate Month Average Month rate 1981—May 4. 19.00 1981—Oct. 5 19.00 1980—July 11.48 1981—Apr 11. 19.50 13 18.00 Aug 11.12 May 19. 20.00 Nov. 3 17.50 Sept 12.23 22. 20.50 9 16.50- Oct 13.79 July June 3 20.00 17.00 16.06 Aug July 8. 20.50 17 17.00 Dec 20.35 Sept Sept. 15 20.00 20 16.50 20.16 Oct 22 19.50 24 16.00 1981—Jan 19.43 Nov Dec. 1 15.75 Feb 18.05 Dec Mar 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 2-7, 1981 Size of loan (in thousands of dollars) All sizes 1,000 25-49 100-499 500-999 and over SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS 1 Amount of loans (thousands of dollars) $25,466,901 $853,739 $639,132 $579,473 $2,158,438 $814,291 $20,421,829 2 Number of loans 161,627 115,558 20,039 8,992 12,122 1,275 3,641 3 Weighted-average maturity (months) 1.6 3.0 2.8 3.9 3.4 3.0 1.2 4 Weighted-average interest rate (percent per annum) 17.23 19.95 19.19 19.65 19.13 18.64 16.73 5 Interquartile range1 16.14-18.06 18.25-21.55 18.25-20.85 18.27-21.15 18.25-20.22 17.50-19.65 15.99-17.30 Percentage of amount of loans 6 With floating rate 35.5 27.9 48.2 56.5 57.0 72.1 31.1 7 Made under commitment 48.1 31.3 35.9 35.8 45.9 71.9 8 With no stated maturity 15.9 10.1 15.3 17.1 19.9 35.2 15.0 LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS 9 Amount of loans (thousands of dollars) $2,438,209 $317,491 $688,950 $205,534 $1,226,234 10 Number of loans 27,160 23,639 2,811 319 391 11 Weighted-average maturity (months) 37.6 29.4 34.0 37.1 41.8 12 Weighted-average interest rate (percent per annum) 18.94 19.60 21.22 18.52 17.55 13 Interquartile range1 17.50-19.56 18.00-20.50 18.00-20.50 17.50-19.75 16.72-18.90 Percentage of amount of loans 14 With floating rate 56.3 48.0 33.1 85.6 66.6 15 Made under commitment 54.1 36.3 27.2 69.5 71.2 CONSTRUCTION AND LAND DEVELOPMENT LOANS 16 Amount of loans (thousands of dollars) $1,420,394 $155,847 $192,683 $187,702 $425,106 $459,056 17 Number of loans 23,437 12,668 5,497 2,616 2,406 250 18 Weighted-average maturity (months) 9.9 7.6 9.9 5.7 11.5 11.1 19 Weighted-average interest rate (percent per annum) 19.46 19.86 19.60 20.43 20.03 18.34 20 Interquartile range1 18.54-20.75 19.00-21.00 18.77-19.90 18.50-21.74 19.56-20.82 17.12-19.90 Percentage of amount of loans 21 With floating rate 55.3 17.6 21.2 45.2 48.5 92.8 22 Secured by real estate 82.4 95.9 98.5 98.9 78.9 67.5 23 Made under commitment 38.5 16.4 11.6 16.8 28.2 75.6 24 With no stated maturity 10.2 3.6 2.3 4.3 4.3 23.7 Type of construction 25 1- to 4-family 45.8 79.6 55.2 63.4 57.3 12.6 26 Multifamily 5.0 1.2 1.6 2.8 3.7 9.8 27 Nonresidential 49.2 19.1 43.2 33.8 39.0 77.7 All 250 sizes 25-49 50-99 100-249 and over LOANS TO FARMERS 28 Amount of loans (thousands of dollars) $1,260,648 $156,504 $179,965 $197,569 $162,025 $301,038 $263,546 29 Number of loans 64,345 41,247 12,442 5,909 2,448 1,919 380 30 Weighted-average maturity (months) 5.8 5.8 7.3 5.5 5.7 5.6 4.9 31 Weighted-average interest rate (percent per annum) 18.76 18.52 18.79 18.59 18.40 19.04 18.93 32 Interquartile range1 17.72-19.56 17.72-19.44 17.72-19.54 17.72-19.36 17.72-19.06 18.10-20.12 18.00-20.15 By purpose of loan 33 Feeder livestock 18.50 18.56 18.19 18.35 18.41 18.14 19.10 34 Other livestock 18.66 18.23 19.50 18.77 18.05 35 Other current operating expenses 18.88 18.67 19.04 18.74 18.47 19.20 19.11 36 Farm machinery and equipment 18.11 18.00 17.94 17.98 37 Other 18.87 18.68 19.13 19.31 18.28 19.03 18.63 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 All 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 and 1982, week ending IInnssttrruummeenntt 11997799 11998800 11998811 Sept. Oct. Nov. Dec. Dec. 4 Dec. 11 Dec. 18 Dec. 25 Jan. 1 MONEY MARKET RATES 1 Federal funds1,2 11.19 13.3t 16.38 15.87 15.08 13.31 12.37 12.48 12.04 12.26 12.43 12.54 Commercial paper3'4 2 1-month 10.86 12.76 15.69 15.95 14.80 12.35 12.16 11.48 11.70 12.39 12.64 12.59 3 3-month 10.97 12.66 15.32 16.09 14.85 12.16 12.12 11.38 11.61 12.33 12.65 12.66 4 6-month 10.91 12.29 14.76 15.93 14.72 11.96 12.14 11.30 11.60 12.34 12.71 12.78 Finance paper, directly placed3,4 5 1-month 10.78 12.44 15.30 15.68 14.63 12.13 11.89 11.09 11.49 12.15 12.51 12.22 6 3-month 10.47 11.49 14.08 15.24 14.04 11.80 11.31 10.86 10.80 11.29 11.76 12.00 7 6-month 10.25 11.28 13.73 15.01 13.96 11.72 11.24 10.84 10.81 11.26 11.56 11.82 Bankers acceptances4,5 8 3-month 11.04 12.78 15.32 16.11 14.78 12.00 12.13 11.31 11.66 12.26 12.80 12.63 9 6-month n.a. n.a. 14.66 15.80 14.62 11.84 12.27 11.47 11.78 12.30 12.91 12.90 Certificates of deposit, secondary market6 10 1-month 11.03 12.91 15.91 16.31 14.97 12.45 12.27 11.55 11.82 12.49 12.80 12.64 11 3-month 11.22 13.07 15.91 16.84 15.39 12.48 12.49 11.62 11.96 12.68 13.16 13.03 12 6-month 11.44 12.99 15.77 17.19 15.71 12.65 13.07 12.13 12.46 13.15 13.83 13.80 13 Eurodollar deposits, 3-month2 11.96 14.00 16.79 17.80 16.34 13.33 13.24 12.16 12.48 13.38 13.65 13.14 U.S. Treasury bills4 Secondary market7 14 3-montn 10.07 11.43 14.03 14.70 13.54 10.86 10.85 10.39 10.47 10.94 11.14 11.35 15 6-month 10.06 11.37 13.80 14.92 13.82 11.30 11.52 10.83 11.06 11.51 12.03 12.25 16 1-year 9.75 10.89 13.14 14.53 13.62 11.20 11.57 10.85 11.13 11.53 12.16 12.23 Auction average8 17 3-month 10.041 11.506 14.077 14.951 13.873 11,269 10.926 10.400 10.404 11.101 11.037 11.690 18 6-month 10.017 11.374 13.811 15.057 14.013 11.530 11.471 10.701 10.772 11.595 11.838 12.448 1199 99..881177 1100..774488 1133..115599 1155..005566 1144..558800 1144..007777 1111..550044 1100..550066 1122..550011 CAPITAL MARKET RATES U.S. Treasury notes and bonds9 Constant maturities10 20 1-year 10.67 12.05 14.78 16.52 15.38 12.41 12.85 12.00 12.32 12.79 13.56 13.68 21 2-year 10.12 11.77 14.56 16.46 15.54 12.88 13.29 12.61 12.92 13.22 13.86 13.88 11 2-'^-year11 12.95 13.45 14.00 23 3-year 9.71 11.55 14.44 16.22 15.50 13.11 13.66 13.06 13.46 13.56 14.15 14.09 24 5-year 9.52 11.48 14.24 15.93 15.41 13.38 13.60 13.03 13.47 13.44 14.03 14.04 25 7-year 9.48 11.43 14.06 15.65 15.33 13.42 13.62 13.10 13.51 13.47 13.99 14.04 26 10-year 9.44 11.46 13.91 15.32 15.15 13.39 13.72 13.32 13.66 13.58 14.00 14.07 27 20-year 9.33 11.39 13.72 15.07 15.13 13.56 13.73 13.32 13.66 13.58 14.00 14.11 28 30-year 9.29 11.30 13.44 14.67 14.68 13.35 13.45 13.05 13.40 13.35 13.70 13.78 Composite12 29 Over 10 years (long-term) 8.74 10.81 12.87 14.14 14.13 12.68 12.88 12.41 12.81 12.78 13.12 13.26 State and local notes and bonds Moody's series13 30 Aaa 5.92 7.85 10.43 11.55 12.05 10.98' 11.70 10.70 11.95 11.95 11.95 11.95 31 Baa 6.73 9.01 11.76 13.60 13.34 12.69' 13.30 12.50 13.00 13.50 13.50 14.00 32 Bond Buyer series14 6.52 8.59 11.33 12.92 12.83 11.89 12.90 12.18 12.89 13.00 13.17 13.30 Corporate bonds Seasoned issues15 33 All industries 10.12 12.75 15.06 16.16 16.20 15.35 15.38 15.05 15.25 15.37 15.56 15.69 34 Aaa 9.63 11.94 14.17 15.49 15.40 14.22 14.23 13.99 14.16 14.11 14.36 14.50 35 Aa 9.94 12.50 14.75 15.95 15.82 14.97 15.00 14.57 14.78 15.05 15.26 15.38 36 A 10.20 12.89 15.29 16.36 16.47 15.82 15.75 15.50 15.65 15.75 15.86 16.00 37 Baa 10.69 13.67 16.04 16.92 17.11 16.39 16.55 16.15 16.42 16.55 16.75 16.86 Aaa utility bonds16 38 10.03 12.74 15.56 17.21 16.94 15.56 15.20 14.98 15.44 39 Recently offered issues 10.02 12.70 15.56 17.33 17.24 15.49 15.18 14.80 15.18 15.26 15.49 15.65 MEMO: Dividend/price ratio17 40 Preferred stocks 9.07 10.57 n.a. 13.01 13.09 12.76 12.83 12.71 12.43 12.60 13.13 13.30 41 Common stocks 5.46 5.25 n.a. 5.69 5.65 5.54 5.57 5.47 5.45 5.62 5.64 5.65 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 quotea 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 NonfinancialS tatistics • January 1982 1.36 STOCK MARKET Selected Statistics 1981 IInnddiiccaattoorr 11997799 11998800 11998811 May June July Aug. Sept. Oct. Nov. Dec. Prices and trading (averages of daily figures) Common stock prices 1 New York Stock Exchange (Dec. 31, 1965 = 50) 55.67 68.06 74.02 76.28 76.80 74.98 75.24 68.37 69.40 71.49 71.81 2 Industrial 61.82 78.64 85.44 88.78 88.63 86.64 86.72 78.07 78.94 80.86 81.70 3 Transportation 45.20 60.52 72.61 76.78 76.71 74.42 73.27 63.67 65.65 67.68 68.27 4 Utility 36.46 37.35 38.90 38.27 39.23 38.90 40.22 38.17 38.87 40.73 40.22 5 Finance 58.65 64.28 73.52 74.65 79.79 74.97 73.76 69.38 72.58 76.47 74.74 6 Standard & Poor's Corporation (1941-43 = 10)1 107.94 118.71 128.05 131.73 132.28 129.13 129.63 118.27 119.84 122.92 123.79 7 American Stock Exchange (Aug. 31, 1973 = 100) 186.56 300.94 343.50 365.52 369.64 364.33 364.60 313.60 308.81 321.01 321.84 Volume of trading (thousands of shares) 8 New York Stock Exchange 32,233 44,867 47,237 45,272 50.517 43,930 44,489 46,042 46,233 50,791 43,596 9 American Stock Exchange 4,182 6,377 5,346 5,650 6,096 4,374 5,137 5,556 4,233 5,257 4,992 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers-dealers2 11,619 14,721 14,951 15,126 15,134 14,545 13,973 13,866 14,044 11 Margin stock3 11,450 14,500 14,700 14,870 14,870 14,270 13,710 13,600 13,780 12 Convertible bonds 167 219 251 254 263 274 263 263 261 13 Subscription issues 2 2 n a. 1 2 1 1 3 3 n a. Free credit balances at brokers4 14 Margin-account 1,105 2.105 2,345 2,350 2,670 2,645 2,940 2,990 3,290 15 Cash-account 4,060 6,070 t 6,150 6,650 6,470 6,640 6,555 6,100 6,865 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 Bv equity class (in percent)5 17 Under 40 16.0 1144..00 21.3 2255..00 25.0 3388..55 47.0 3322..00 30.0 18 40-49 29.0 30.0 n a. 25.3 29.0 29.0 24.0 22.0 28.0 25.0 n.a. 19 50-59 27.0 25.0 25.3 21.0 22.0 15.0 13.0 18.0 21.0 20 60-69 14.0 14.0 12.7 11.0 11.0 10.0 8.0 10.0 11.0 21 70-79 8.0 9.0 8.0 7.0 7.0 6.0 5.0 6.0 6.0 22 80 or more 7.0 8.0 8.0 7.0 6.0 6.0 5.0 6.0 7.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6 16,150 21,690 23,457 23,700 24,460 24,760 25,234 24,962 25,409 Distribution by equity status t (percent) 1 24 Net credit status 44.2 47.8 n.a. 50.2 53.2 53.8 53.5 55.0 55.0 57.0 Debt status, equity of 2 2 5 6 6 L 0 e s p s e t r h c a e n n t 6 o 0 r p m er o c r e e n t 47.0 44 7 . . 4 7 \1 4 8 1. . 0 8 38 8 . . 4 4 37 8 . . 9 3 37 9 . . 0 5 3 12 3. . 0 0 3 10 5. . 0 0 3 10 3. . 0 0 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 proeguity 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

Financial Institutions A29 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1981 AAccccoouunntt 11997799 11998800 Feb. Mar. Apr. May June Julyr Aug/ Sept. Oct. Nov.? Savings and loan associations 1 Assets 578,962 629,829 634,405 636,859 639,827 644,603 646,704 648,793 651,986 654,605 657,997 659,162 2 Mortgages 475,688 502,812 505,309 507,152 509,525 511,754 514,803 516,527 517,701 518,379 518,780 518,600 3 Cash and investment securities1 46,341 57,572 58,401 58,461 56,886 59,045 57,616 57,453 58,558 59,161 61,125 61,026 4 Other 56,933 69,445 70,695 71,246 72,416 73,804 74,285 74,813 75,727 77,065 78,092 79,536 5 Liabilities and net worth 578,962 629,829 634,405 636,859 639,827 644,603 646,704 648,793 651,986 654,605 657,997 659,162 6 Savings capital 470,004 510,959 515,250 518,990 516,071 517,628 517,632 514,103 512,745 514,941 518,556 518,961 7 Borrowed money 55,232 64,491 62,270 64,197 67,704 70,025 74,756 79,554 83,287 87,296 85,926 86,088 8 FHLBB 40,441 47,045 46,360 47,310 49,607 51,064 53,836 57,188 60,025 61,857 62,000 61,880 9 Other 14,791 16,309 16,887 18,097 18,097 18,961 20,920 22,366 23,262 25,439 23,926 24,208 10 Loans in process 9,582 8,120 7,756 7,840 7,840 7,997 8,008 7,766 7,382 7,073 6,790 6,506 11 Other 11,506 12,227 16,071 13,271 14,946 17,089 14,756 16,365 18,067 15,097 17,298 18,823 12 Net worth2 32,638 33,319 32,981 32,645 32,266 31,864 31,552 31,005 30,505 30,198 29,427 28,784 13 MEMO: Mortgage loan commitments outstanding3 16,007 16,102 16,279 17,374 18,552 18,740 18,020 17,224 16,681 16,015 15,731 15,750 Mutual savings banks4 14 Assets 163,405 171,564 172,349 173,232 172,837 173,776 174,387 174,578 174,761 175,234 175,693 Loans 15 Mortgage 98,908 99,865 99,739 99,719 99,798 99,790 99,993 100,095 99,987 99,944 99,903 16 Other 9,253 11,733 12,598 13,248 12,756 13,375 14,403 14,359 14,560 14,868 14,725 Securities 17 U.S. government5 7,658 8,949 9,032 9,203 9,262 9,296 9,230 9,361 9,369 9,594 9,765 18 State and local government 2,930 2,390 2,376 2,359 2,314 2,328 2,337 2,291 2,326 2,323 2,394 19 Corporate and other6 37,086 39,282 39,223 39,236 39,247 39,111 38,418 38,374 38,180 38,118 38,108 20 Cash 3,156 4,334 4,205 4,238 4,172 4,513 4,473 4,629 4,791 4,810 5,118 21 Other assets 4,412 5,011 5,177 5,231 5,288 5,364 5,534 5,469 5,547 5,577 5,681 n a. 22 Liabilities 163,405 171,564 172,349 173,232 172,837 173,776 174,387 174,578 174,761 175,234 175,693 13 Deposits 146,006 153,501 53,332 154,805 153,692 153,891 154,926 153,757 153,120 153,412 154,066 74 Regular7 144,070 151,416 151,346 152,630 151,429 151,658 152,603 151,394 150,753 151,072 151,975 25 Ordinary savings 61,123 53,971 52,035 53,049 52,331 51,212 51,594 50,593 49,003 49,254 48,238 26 Time and other 82,947 97,445 99,311 99,581 99,098 100,447 101,009 100,800 101,750 101,818 103,737 27 Other 1,936 2,086 1,986 2,174 2,264 2,232 2,323 28,494 27,073 25,769 24,806 28 Other liabilities 5,873 6,695 7,753 7,265 8,103 8,922 8,634 10,156 11,125 11,458 11,513 29 General reserve accounts 11,525 11,368 13,412 11,163 11,042 10,923 10,827 10,665 10,516 10,364 10,114 30 MEMO: Mortgage loan commitments outstanding8 3,182 1,476 1,331 1,379 1,614 1,709 1,577 1,401 1,333 1,218 1,140 Life insurance companies 31 Assets 432,282 479,210' 485,033 490,149 493,185 497,276 500,316 503,994 506,585 509,478 515,079 Securities 32 Government 0,338 21,378'' 22,669 22,775 22,603 22,948 23,415 23,691 23,949 24,280 24,621 33 United States9 4,888 5,345r 6,774 6,807 6,502 6,787 7,119 7,359 7,544 7,670 7,846 34 State and local 6,428 6,701' 6,145 6,199 6,809 6,815 6,876 6,865 6,904 7,033 7,129 35 Foreign10 9,022 9,332r 9,250 9,269 9,292 9,346 9,420 9,467 9,501 9,577 9,646 36 Business 222,332 238,113' 241,675 243,996 245,841 247,437 248,737 250,186 250,371 250,315 253,976 n a. 37 Bonds 178,371 190,747' 195,251 196,514 198,397 199,818 201,402 203,016 204,501 205,908 208,004 38 Stocks 39,757 47,366' 46,424 47,482 47,444 47,619 47,335 41,170 45,870 44,407 45,972 39 Mortgages 118,421 131,080' 132,567 133,230 133,896 134,492 135,318 135,928 136,516 136,982 137,736 40 Real estate 13,007 15,033' 15,869 16,244 16,464 16,738 16,966 17,429 17,626 17,801 18,382 41 Policy loans 34,825 41,411' 42,574 43,231 43,772 44,292 44,970 45,591 46,252 47,042 47,731 42 Other assets 27,563 31,702' 29,679 30,673 30,609 31,369 30,910 31,169 31,971 33,058 32,633 Credit unions 43 Total assets/liabilities and capital 65,854 71,709 71,446 73,214 72,783 73,565 74,041 73,616 73,240 73,719 73,715 74,402 44 Federal 35,934 39,801 39,636 40,624 40,207 40,648 40,948 40,510 40,233 40,513 40,555 40,843 45 State 29,920 31,908 31,810 32,590 32,576 32,917 33,093 33,106 33,007 33,206 23,160 33,559 46 Loans outstanding 53,125 47,774 47,451 47,815 47,994 48,499 49,064 49,507 49,976 50,169 49,799 49,410 47 Federal 28,698 25,627 25,376 25,618 25,707 26,038 26,422 26,661 26,974 27,137 26,956 26,783 48 State 24,426 22,147 22,075 22,197 22,287 22,461 22,642 22,846 23,002 23,032 22,843 22,627 49 Savings 56,232 64,399 64,357 65,744 65,495 65,988 66,472 65,854 65,138 65,686 65,797 66,141 50 Federal (shares) 35,530 36,348 36,236 36,898 36,684 36,967 37,260 36,819 36,373 36,584 36,671 36,910 51 State (shares and deposits) 25,702 28,051 28,121 28,846 28,811 29,021 29,212 29,035 28,765 29,102 29,126 29,231 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic NonfinancialS tatistics • January 1982 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFiissccaall FFiissccaall FFiissccaall Type of account or operation yyeeaarr yyeeaarr yyeeaarr 11997799 119988((yy 11998811 1980 1981 1981 HI H2 HI Sept. Oct. Nov. U.S. budget 1 Receipts' 465,940 520.056 602,612 270,864 262,152 318,899 60,594 45,467 44,317 2 Outlays1-2 493,635 579.603 660,544 289,905 310,972 334,710 53,698 63,573 54,959 3 Surplus, or deficit (-) -27,694 -59,547 -57,932 -19,041 -48,821 -15,811 6,897 -18,106 -10,642 4 Trust funds 18,335 8.791 7,168 4,383 -2,551 5,797 9,408 -4,269 -2,352 5 Federal funds3 -46,069 -67,752 -65,099 -23,418 -46,306 -21,608 -2,511 -13,837 -8,290 OOffff--bbuuddggeett eennttiittiieess ((ssuurrpplluuss,, oorr ddeeffiicciitt ((--)))) 66 FFeeddeerraall FFiinnaanncciinngg BBaannkk oouuttllaayyss -13,261 -14,549 -20,769 -7,735 -7,552 -11,046 -3,129 -638 -1,189 77 OOtthheerr44 793 303 -236 -522 376 -900 30 -5 -691 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-) -40,162 -73,792 -78,937 -27,298 -55,998 -27,757 3,798 -18,749 -12,522 Source or financing 9 Borrowing from the public 33,641 70,515 79,329 24,435 54,764 33,213 8,577 10,374 10,972 10 Cash and monetary assets (decrease, or increase (-)) -408 -355 -1,878 -3,482 -6,730 2,873 -13,731 1,483 8,129 11 Other6 6,929 3,632 1,485 6,345 7,964 -8,328 1,356 6,892 -6,579 MEMO: 12 Treasury operating balance (level, end of period) 24,176 20,990 18,670 14,092 12,305 16,389 18,670 16,335 7,796 13 Federal Reserve Banks 6,489 4,102 3,520 3,199 3,062 2.923 3,520 3,550 3,475 14 Tax and loan accounts 17,687 16,888 15,150 10,893 9.243 13,466 15,150 12,785 4,321 1. Effective June 1978, earned income credit payments in excess of an individ- 6. Includes accrued interest payable to the public; allocations of special drawing ual'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; seigniorage; 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 1982. 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. Be- Life insurance companies: Estimates of the American Council of Life Insurance fore 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 FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll SSSooouuurrrccceee ooorrr tttyyypppeee yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 1980 1981 1981 111999777999 111999888000rrr 111999888111 HI H2 HI Sept. Oct. Nov. RECEIPTS 1 All sources1 465,955 520,056 602,612 270,864 262,152 318,899 60,594 45,467 44,317 7 Individual income taxes, net 217,841 244,069 285,551 119,988 131,962 142,889 30,882 22,555 21,775 3 Withheld 195,295 223,763 255,966 110,394 120,924 126,101 21,291 21,817 21,387 4 Presidential Election Campaign Fund... 36 39 41 34 4 36 0 0 0 56,215 63,746 76,844 49,707 14,592 59,907 10,155 1,283 846 6 Refunds1 33,705 43,479 47,299 40,147 3,559 43,155 564 545 458 Corporation income taxes 7 Gross receipts 71,448 72,380 73,733 43,434 28,579 44,048 1100,,004400 22,,993344 11,,887777 8 Refunds 5,771 7,780 12,596 4,064 4,518 6,565 1,381 1,669 1,133 9 Social insurance taxes and contributions, net 141,591 160,747 186,426 86,597 77,262 102,911 14,516 15,369 15,795 10 Payroll employment taxes and contributions2 115,041 133,042 156,953 69,077 66,831 83,851 13,136 13,872 1133,,661100 11 Self-employment taxes and contributions3 5,034 5,723 6,041 5,535 188 6,240 524 443 0 1? Unemployment insurance 15,387 15,336 16,129 8,690 6,742 9,205 193 439 1,563 13 Other net receipts4 6,130 6,646 7,304 3,294 3,502 3,615 663 616 622 14 18,745 24,329 40,839 11,383 15,332 21,945 3,597 3,486 3,334 15 Customs deposits 7,439 7,174 8,083 3,443 3,717 3,926 771 784 729 16 Estate and gift taxes 5,411 6,389 6,787 3,091 3,499 3,259 699 643 598 17 Miscellaneous receipts5 9,252 12,748 13,790 6,993 6,318 6,487 1500 1,365 1,341 OUTLAYS 18 All types1,6 493,635 579,603 660,544 289,905 310,972 334,710 53,698 64,216 54,959 19 National defense 117,681 135,880 159,699 69,132 72,457 80,005 14,022 14,722 14,205 70 International affairs 6,091 10,472 11,051 4,602 5,430 5,999 982 1,019 745 21 General science, space, and technology ... 5,041 5,999 6,422 3,150 3,205 3,314 347 830 592 77 Energy 6,856 6,623 10,642 3,126 3,997 5,677 1,018 1,276 173 rs Natural resources and environment 12,091 14,130 13,783 6,668 7,722 6,476 1,131 1,562 955 24 Agriculture 6,238 4,951 5,598 3,193 1,892 3,101 -407 820 1,637 75 Commerce and housing credit 2,565 7,795 3,995 3,878 3,163 1,940 -639 1,154 -243 76 Transportation 17,459 20,840 23,312 9,582 11,547 11,991 1,881 1,727 1,559 27 Community and regional development 9,482 9,917 9,265 5,302 5,370 4,621 641 990 707 28 Education, training, employment, social services 29,685 31,399 30,563 16,686 15,221 15,928 11,,995544 2,655 22,,227744 79 Health 49,614 58,165 69,324 29,299 31,263 34,708 6,599 6,276 6,173 30 Income security1,6 160,159 192,133 225,599 94,605 107,912 113,490 19,094 20,847 18,462 31 Veterans benefits and services 19,928 21,167 22,937 9,758 11,731 10,531 2,011 3,013 854 32 Administration of justice 4,153 4,554 4,721 2,291 2,299 2,344 397 387 371 33 General government 4,153 4,641 4,730 2,422 2,432 2,692 266 508 339 34 General-purpose fiscal assistance 8,372 8,306 6,621 3,940 4,191 3,015 179 1,314 259 35 Interest7 52,556 64,564 82,590 32,658 35,909 41,178 6,436 6,157 7,869 36 Undistributed offsetting receipts7,8 -18,489 -21,933 -30,306 -10,387 -14,769 -12,432 -2,216 -1,039 -1,973 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 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Financial Statistics • January 1982 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1979 1980 1981 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 833.8 852.2 870.4 884.4 914.3 936.7 970.9 977.4 1,003.9 2 Public debt securities 826.5 845.1 863.5 877.6 907.7 930.2 964.5 971.2 997.9 3 Held by public 638.8 658.0 677.1 682.7 710.0 737.7 773.7 771.3 789.8 4 Held by agencies 187.7 187.1 186.3 194.9 197.7 192.5 190.9 199.9 208.1 5 Agency securities 7.2 7.1 7.0 6.8 6.6 6.5 6.4 6.2 6.1 6 Held by public 5.8 5.6 5.5 5.3 5.1 5.0 4.9 4.7 4.6 / 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 827.6 846.2 864.5 878.7 908.7 931.2 965.5 972.2 998.8 9 Public debt securities 825.9 844.5 862.8 877.0 907.1 929.6 963.9 970.6 997.2 10 Other debt1 1.7 1.7 1.7 1.7 1.6 1.6 1.6 1.6 1.6 11 MEMO: Statutory debt limit 830.0 879.0 879.0 925.0 925.0 935.1 985.0 985.0 999.8 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 Aug. Sept. Oct. Nov. Dec. 1 Total gross public debt 718.9 789.2 845.1 930.2 980.2 997.9 1,005.0 1,013.3 1,028.7 By type 2 Interest-bearing debt 715.2 782.4 844.0 928.9 978.9 996.5 999.5 1,011.9 1,027.3 3 Marketable 459.9 487.5 530.7 623.2 673.8 683.2 689.6 704.8 720.3 4 Bills 161.1 161.7 172.6 216.1 219.9 223.4 229.1 233.9 245.0 5 Notes 251.8 265.8 283.4 321.6 357.6 363.6 362.6 370.8 375.3 6 Bonds 47.0 60.0 74.7 85.4 96.3 96.2 97.9 100.1 99 9 7 Nonmarketable1 255.3 294.8 313.2 305.7 305.2 313.3 309.9 307.1 307.0 8 2.2 2.2 2.2 9 State and local government series 13.9 24.3 24.6 23.8 22.8 23.2 23.1 23.0 23.0 10 Foreign issues3 22.2 29.6 28.8 24.0 21.4 20.5 20.5 20.3 19.0 11 Government 21.0 28.0 23.6 17.6 15.7 15.5 15.5 15 3 14 9 12 Public 1.2 1.6 5.3 6.4 5.7 5.0 5.0 5 n 4 1 13 Savings bonds and notes 77.0 80.9 79.9 72.5 68.6 68.3 68.0 68.0 68 1 14 Government account series4 139.8 157.5 177.5 185.1 192.1 201.1 198.1 195.5 196.7 15 Non-interest-bearing debt 3.7 6.8 1.2 1.3 1.3 1.4 5.6 1.4 1.4 By holder5 16 U.S. government agencies and trust funds 154.8 170.0 187.1 192.5 199.0 208.1 204.9 17 Federal Reserve Banks 102.8 109.6 117.5 121.3 124.5 124.3 122.4 18 Private investors 461.3 508.6 540.5 616.4 656.7 665.4 677.2 19 Commercial banks 101.4 93.2 96.4 116.0 115.0 112.2 111.3 20 Mutual savings banks 5.9 5.0 4.7 5.4 5.5 5.5 5.5 21 Insurance companies 15.1 15.7 16.7 20.1 20.6 20.7 19.2 n a. n a. 22 Other companies 20.5 19.6 22.9 25.7 38.0 37.8 38.6 23 State and local governments 55.2 64.4 69.9 78.8 86.2 86.2 88.3 Individuals 24 Savings bonds 76.7 80.7 79.9 72.5 68.7 68.3 68.0 25 Other securities 28.6 30.3 36.2 56.7 71.5 72.0 73.0 26 Foreign and international6 109.6 137.8 124.4 127.7 137.0 135.5 135.5 27 Other miscellaneous investors7 49.7 58.9 90.1 106.9 114.2 127.2 137.8 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 11997799 11997799 Sept. Oct. Sept. Oct. All maturities 1 to 5 years 1 All holders 530,731 623,186 683,209 689,578 164,198 197,409 218,310 213,462 2 U.S. government agencies and trust funds 11.047 9,564 9,015 9,009 2,555 1,990 1,368 1,352 3 Federal Reserve Banks 117,458 121,328 124,330 122,399 8,469 35,835 34,689 34,264 4 Private investors 402,226 492,294 549,863 558,169 133,173 159,585 182,253 177,846 5 Commercial banks 69.076 77,868 77,015 76,348 38,346 44,482 40,551 39,676 6 Mutual savings banks 3,204 3,917 4,101 4,101 1,668 1,925 1,991 1,897 7 Insurance companies 11.496 11,930 13,297 12,462 4,518 4,504 5,415 5,302 8 Nonfinancial corporations 8,433 7,758 5,278 5,610 2,844 2,203 1,065 1,128 9 Savings and loan associations 3,209 4,225 4,253 4,030 1,763 2,289 2,354 2,251 10 State and local governments 15.735 21,058 23,757 24,513 3,487 4,595 4,995 4,567 11 All others 291,072 365,539 422,162 431,104 80,546 99,577 125,881 123,024 Total, within 1 year 5 to 10 years 12 All holders 255,252 297,385 318,998 325,037 50,440 56,037 61,660 65,118 13 U.S. government agencies and trust funds 1,629 830 909 919 871 1,404 1,398 1,398 14 Federal Reserve Banks 63,219 56,858 61,919 60,413 12,977 13,458 11,519 11,519 15 Private investors 190,403 239,697 256,170 263,705 36,592 41,175 48,743 52,201 16 Commercial banks 20.171 25,197 28,793 28,531 8,086 5,793 4,466 4,823 17 Mutual savings banks 836 1,246 1,463 1,577 459 455 272 253 18 Insurance companies 2,016 1,940 2,104 2,010 2,815 3,037 2,851 2,724 19 Nonfinancial corporations 4,933 4,281 2,543 2,775 308 357 335 316 20 Savings and loan associations 1,301 1,646 1,723 1,628 69 216 102 77 21 State and local governments 5,607 7,750 8,545 9,083 1,540 2,030 2,395 2,805 22 All others 155,539 197,636 211,000 218,100 24,314 29,287 38,324 41,203 Bills, within 1 year 10 to 20 years 23 All holders 172,644 216,104 223,388 229,061 27,588 36,854 41,378 43,098 24 U.S. government agencies and trust funds 0 1 1 1 4,520 3,686 4,027 4,027 25 Federal Reserve Banks 45.337 43,971 46,931 45,605 3,272 5,919 6,491 6,535 26 Private investors 127,306 172,132 176,456 183,454 19,796 27,250 30,860 32,536 27 Commercial banks 5,938 9,856 8,688 8,057 993 1,071 1,265 1,278 28 Mutual savings banks 262 394 360 398 127 181 197 202 29 Insurance companies 473 672 575 669 1,305 1,718 2,106 1,564 30 Nonfinancial corporations 2,793 2,363 1,021 1,206 218 431 775 856 31 Savings and loan associations 219 818 385 265 58 52 38 39 32 State and local governments 3,100 5,413 5,862 6,455 1,762 3,597 4,390 4,666 33 All others 114,522 152,616 159,565 166,404 15,332 20,200 22,089 23,931 Other, within 1 year Over 20 years 34 All holders 82,608 81,281 95,610 95,976 33,254 35,500 42,863 42,863 35 U.S. government agencies and trust funds 1,629 829 907 917 1,472 1,656 1,313 1,313 36 Federal Reserve Banks 17.882 12,888 14,988 14,847 9,520 9,258 9,713 9,669 37 Private investors 63.097 67,565 79,715 80,251 22,262 24,587 31,837 31,881 38 Commercial banks 14.233 15,341 20,104 20,474 1,470 1,325 1,941 2,041 39 Mutual savings banks 574 852 1,103 1,179 113 110 178 171 40 Insurance companies 1,543 1,268 1,529 1,341 842 730 821 862 41 Nonfinancial corporations 2,140 1,918 1,523 1,569 130 476 559 533 42 Savings and loan associations 1,081 828 1,338 1,363 19 21 36 35 43 State and local governments 2,508 2,337 2,683 2,828 3,339 3,086 3,433 3,392 44 AH others 41.017 45,020 51,435 51,696 16,340 18,838 24,869 24,847 NOTE. Direct public issues only. Based on Treasury Survey of Ownership from and 725 insurance companies, each about 80 percent; (2) 410 nonfinancial cor- Treasury Bulletin (U.S. Treasury Department). porations and 469 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 Oct. 31,1981: (1)5,324 commercial banks, 455 mutual savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • January 1982 1.43 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1981 1981, week ending Wednesday Item 1978 1979 1980 Sept. Oct. Nov. Nov. 11 Nov. 18 Nov. 25 Dec. 2 Dec. 9 Immediate delivery1 1 U.S. government securities.. 10,285 13,183 18,331 24,881 27,905 35,034 40,026 35,180 31,434 29,891 30,915 By maturity 2 Bills 6,173 7,915 11,413 14,980 17,241 18,862 21,388 18,701 15,039 16,535 18,298 3 Other within 1 year 392 454 421 794 768 1,137 857 1,424 1,031 1,124 877 4 1-5 years 1,889 2,417 3,330 4,238 4,408 7,713 8,847 7,192 8,517 5,881 5,774 5 5-10 years 965 1,121 1,464 2,688 2,903 3,534 3,237 3,386 4,031 4,038 3,281 6 Over 10 years 867 1,276 1,704 2,181 2,587 3,789 5,698 4,477 2,817 2,314 2,685 By type of customer 7 U.S. government securities dealers 1,135 1,448 1,484 1,810 2,138 2,040 2,120 1,936 1,793 1,578 2,255 8 U.S. government securities brokers 3,838 5,170 7,610 11,922 13,499 16,519 18,771 16,742 15,155 13,631 14,715 9 All others2 5,312 6,564 9,237 11,149 12,269 16,475 19,135 16,502 14,486 14,682 13,946 10 Federal agency securities.... 1,894 2,723 3,258 2,786 3,559 4,383 4,646 4,383 4,632 3,555 3,097 11 Certificates of deposit 1,292 1,764 2,472 5,337 5,370 6,380 6,890 6,773 5,893 4,752 5,937 12 Bankers acceptances 1,844 2,087 2,643 2,829 2,656 2,442 2,509 2,607 13 Commercial paper 6,622 6,989 7,512 7,306 7,902 7,317 7,125 6,713 Futures transactions3 14 Treasury bills 3,764 3,825 4,905 4,638 5,461 4,522 4,679 5,084 15 Treasury coupons 1,840 1,499 2,629 2,255 3,077 3,333 2,449 1,768 16 Federal agency securities.... 169 195 260 276 360 218 162 301 Forward transactions4 17 U.S. government securities.. 359 303 569 700 233 745 491 461 18 Federal agency securities.... 1,269 1,437 1,921 2,116 2,154 1,415 1,911 1,442 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 Sept. Oct. Nov. Oct. 28 Nov. 4 Nov. 11 Nov. 18 Nov. 25 Dec. 2 Positions Net immediate1 1 U.S. government securities... 2,656 3,223 4,306 6,148 6,384 8,592 5,945 7,569 9,621 7,963 9,076 2 Bills 2.452 3.813 4,103 5,543 4,781 4,920 4,056 5,103 5,908 4,705 4,349 3 Other within 1 year 260 -325 -1,062 -2,613 3,235 -3,611 -3,435 -3,532 -3,553 -3,434 -3,538 4 1-5 years -92 -455 434 2,180 1,901 3,779 2,766 3,229 3,483 3,266 4,852 5 5-10 years 40 160 166 31 -12 241 -15 -57 114 -47 346 6 Over 10 years...- -4 30 665 2,081 2,947 3,264 2,573 2,825 3,668 3,474 3,067 7 Federal agency securities 606 1,471 797 2,341 2,059 2,809 2,397 2,630 2,717 2,979 2,694 8 Certificates of deposit 2,775 2,794 3,115 3,341 4,209 4,396 4,045 4,412 4,131 4,567 4,513 10 9 C B o a m nk m e e rs r c a ia c l c e p p a t p an er c es \i 4 2 1, , 4 3 4 37 0 2 2, , 6 13 3 3 5 2 3, , 2 2 7 11 3 2 2, , 2 1 5 10 9 2 2, , 8 2 8 39 0 3 1, , 9 18 8 8 7 2 3, , 4 2 9 27 7 2 3, , 2 18 4 3 5 Future positions 1 T 11 Treasury bills -9,786 -8,568 -7,318 -8,022 -10,225 -8,544 -6,330 -6,014 1 1 3 2 F T e r d ea e s r u al r y a g c e o n u c p y o n se s curities n | .a . n. I a . -2 - , 6 3 6 6 1 3 -3 - , 3 14 6 6 3 -3 - , 1 8 9 7 7 2 -2 - , 1 9 4 8 5 8 -3, - 4 8 0 0 5 -3 - , 1 9 2 1 5 0 -3 - , 1 8 8 6 7 1 -3 - , 2 9 9 0 0 9 Forwards positions 1 1 1 4 5 F U e . 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 i u ti r e i s t ies... *T T - - 5 2 6 54 5 - - 5 3 6 6 0 2 -1 - ,0 4 4 4 5 3 - - 5 4 3 5 8 1 - -6 50 8 0 8 - -8 50 0 3 7 -1 - , 4 16 3 9 5 -1 - , 3 2 6 3 6 1 Financing2 Reverse repurchase agreements- 16 Overnight and continuing ... 17,052 19,848 20,711 19,832 20,080 19,783 20,761 19,474 17 Term agreements 30,889 37,492 44,981 39,901 39,553 43,591 44,220 49,663 Repurchase agreements4 18 Overnight and continuing ... 35,814 41,347 43,324 42,401 44,375 38,954 48,164 34,654 19 Term agreements 29,521 32,892 41,525 33,860 33,875 44,199 37,895 53,156 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 Agency 1978 1980 May June July Aug. Sept. 1 Federal and federally sponsored agencies1 137,063 163,290 193,229 205,020 208,961 213,690 218,362 223,393 2 Federal agencies 23,488 24,715 28,606 29,311 29,945 29,978 30,088 30,870 3 Defense Department2 968 738 610 556 546 536 526 516 4 Export-Import Bank3-4 8,711 9,191 11,250 11,850 12,423 12,401 12,385 12,855 5 Federal Housing Administration5 588 537 477 449 448 443 449 432 6 Government National Mortgage Association participation certificates6 3,141 2,979 2,817 2,775 2,715 2,715 2,715 2,715 7 Postal Service7 2,364 1,837 1,770 1,538 1,538 1,538 1,538 1,538 8 Tennessee Valley Authority 7,460 8,997 11,190 11,930 12,060 12,130 12,260 12,599 9 United States Railway Association7 356 436 492 213 215 215 215 215 10 Federally sponsored agencies1 113,575 138,575 164,623 175,709 179,016 183,712 188,274 192,523 11 Federal Home Loan Banks 27,563 33,330 41,258 47,121 49,425 52,431 55,161 58,276 12 Federal Home Loan Mortgage Corporation . 2,262 2,771 2,536 2,409 2,409 2,408 2,408 2,308 13 Federal National Mortgage Association 41,080 48,486 55,185 54,430 54,657 55,362 56,372 56,688 14 Federal Land Banks 20,360 16,006 12,365 10,583 10,583 10,317 10,317 10,317 15 Federal Intermediate Credit Banks 11,469 2,676 1,821 1,388 1,388 1,388 1,388 1,388 16 Banks for Cooperatives 4,843 584 584 220 220 220 220 220 17 Farm Credit Banks1 5,081 33,216 48,153 56,061 56,932 57,784 58,306 59,024 1 1 8 9 O St t u h d e e r n t Loan Marketing Association8 915 2 1,505 1 2,720 1 3,495 2 3,400 2 3,800 2 4,100 2 4,300 2 MEMO: 20 Federal Financing Bank debt1-9 51,298 67,383 87,460 98,297 100,333 102,853 103,597 107,309 Lending to federal and federally sponsored agencies 21 Export-Import Bank4 6,898 8,353 10,654 11,346 11,933 11,933 11,933 12,409 22 Postal Service7 2,114 1,587 1,520 1,288 1,288 1,288 1,288 1,2 23 Student Loan Marketing Association8 915 1,505 2,720 3,495 3,400 3,800 4,100 4,300 24 Tennessee Valley Authority 5,635 7,272 9,465 10,205 10,335 10,405 10,535 10,874 25 United States Railway Association7 356 436 492 213 215 215 215 215 Other Lending10 26 Farmers Home Administration 23,825 32,050 39,431 44,746 45,691 47,396 47,171 48,821 27 Rural Electrification Administration 4,604 6,484 9,196 10,988 11,346 11,604 11,861 12,343 28 Other 6,951 9,696 13,982 16,016 16,125 16,212 16,494 17,059 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 trading purposes. Securities owned, and hence dealer positions, do not include securities to resell (reverse RPs). Before 1981, data for NOTE. Data for positions are averages of daily figures, in terms of par value, immediate positions include forward positions. based on the number of trading days in the period. Positions are shown net and 2. Figures cover financing involving U.S. government and federal agency secu- are on a commitment basis. Data for financing are based on Wednesday figures, rities, negotiable CDs, bankers acceptances, and commercial paper. in terms of actual money borrowed or lent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic NonfinancialS tatistics • January 1982 1.46 NEW SECURITY ISSUES of State and Local Governments Millions of dollars 1981 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11997788 11997799 11998800 May June July Aug. Sept. Oct. 1 All issues, new and refunding1 48,607 43,490 48,462 3,476 4,862 3,180 3,066 3,769 3,712 Type of issue 2 General obligation 17,854 12,109 14,100 1,321 1,387 1,064 954 530 739 3 Revenue 30,658 3311,,225566 3344,,226677 22,,114455 33,,447700 22,,111111 22,,110000 33,,222288 22,,997733 4 Housing Assistance Administration2 5 U.S. government loans 95 125 95 10 5 5 12 11 0 Type of issuer 6 State 6,632 4,314 5,304 639 585 353 446 92 439 7 Special district and statutory authority 24,156 23,434 26,972 1,667 2,706 1,724 1,682 2,667 2,138 8 Municipalities, counties, townships, school districts 17,718 15,617 16,090 1,160 1,566 1,099 927 1,000 1,134 9 Issues for new capital, total 37,629 41,505 46,736 3,463 4,781 3,167 2,408 3,752 3,617 Use of proceeds 10 Education 5,003 5,130 4,572 231 641 255 267 136 198 11 Transportation 3,460 2,441 2,621 427 160 537 110 206 496 12 Utilities and conservation 9,026 8,594 8,149 664 760 881 541 1,626 640 13 Social welfare 10,494 15,968 19,958 1,029 1,371 712 825 459 950 14 Industrial aid 3,526 3,836 3,974 459 747 358 266 823 701 15 Other purposes 6,120 5,536 7,462 653 1,102 424 399 502 632 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 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11997788 11997799 11998800 Apr. May June July Aug. Sept. Oct. 1 All issues1 47,230 51,533 73,688 6,835 5,457 9,536 4,133 3,062 4,637 4,345 2 Bonds 36,872 40,208 53,199 4,597 3,080 5,601 2,376 1,616 2,797 2,848 Type of offering 3 Public 19,815 25,814 41,587 3,668 2,520 4,603 1,925 905 2,198 2,582 4 Private placement 17,057 14,394 11,612 929 560 998 451 711 599 266 Industry group 5 Manufacturing 9,572 9,678 15,409 1,459 1,269 1,313 600 308 452 21 6 Commercial and miscellaneous 5,246 3,948 6,688 342 138 566 206 390 201 617 7 Transportation 2,007 3,119 3,329 142 49 584 133 95 64 54 8 Public utility 7,092 8,153 9,556 904 1,063 996 383 360 1,012 1,008 9 Communication 3,373 4,219 6,683 554 56 470 767 115 471 83 10 Real estate and financial 9,586 11,094 11,534 1,197 506 1,672 287 348 598 1,065 11 Stocks 10,358 11,325 20,490 2,238 2,377 3,935 1,757 1,446 1,840 1,497 Type 12 Preferred 2,832 3,574 3,632 85 164 188 67 14 156 141 13 Common 7,526 7,751 16,858 2,153 2,213 3,747 1,690 1,432 1,684 1,356 Industry group 14 Manufacturing 1,241 1,679 4,839 531 903 382 335 160 117 193 15 Commercial and miscellaneous 1,816 2,623 5,245 477 958 1,024 437 626 457 433 16 Transportation 263 255 549 146 47 18 29 91 87 14 17 Public utility 5,140 5,171 6,230 717 173 843 308 248 484 438 264 303 567 56 1 036 73 12 369 7 19 Real estate and financial 1,631 12,931 3,059 310 296 632 574 310 325 412 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 11998800 Apr. May June July Aug. Sept. Oct. Nov. INVESTMENT COMPANIES1 1 Sales of own shares2 7,495 15,266 2,000 1,785 1,910 1,639 1,457 1,449 1,768 1,729 2 Redemptions of own shares3 8,393 12,012 1,594 1,250 1,512 1,297 1,422 1,457 593 1,125 3 Net sales -898 3,254 406 535 398 342 35 -8 1,175 604 4 Assets4 49,277 58,400 58,531 60,081 58,887 57,494 54,221 51,659 54,335 57,408 5 Cash position5 4,983 5,321 5,099 5,448 5,199 5,109 5,058 5,409 5,799 6,269 6 Other 44,294 53,079 53,432 54,633 53,688 52,385 49,163 46,250 48,536 51,139 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. 1980 1981 AAccccoouunntt 11997788 11997799 11998800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1 Corporate profits with inventory valuation and capital consumption adjustment 185.5 196.8 182.7 200.2 169.3 177.9 183.3 203.0 190.3 195.7 2 Profits before tax 223.3 255.3 245.5 277.1 217.9 237.6 249.5 257.0 229.0 234.4 3 Profits tax liability 82.9 87.6 82.3 94.2 71.5 78.5 85.2 87.7 76.4 78.1 4 Profits after tax 140.3 167.7 163.2 182.9 146.4 159.1 164.3 169.2 152.7 156.3 5 Dividends 44.6 50.1 56.0 53.9 55.7 56.7 57.7 59.6 62.0 64.8 6 Undistributed profits 95.7 117.6 107.2 129.0 90.7 102.4 106.6 109.6 90.6 91.5 7 Inventory valuation -24.3 -42.6 -45.6 -61.4 -31.1 -41.7 -48.4 -39.2 -24.0 -25.3 8 Capital consumption adjustment -13.5 -15.9 -17.2 -15.4 -17.6 -17.9 -17.8 -14.7 -14.7 -13.4 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 • January 1982 1.50 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1980 1981 AAccccoouunntt 11997755 11997766 11997777 11997788 11997799 Q2 Q3 Q4 Q1 Q2 1 Current assets 759.0 826.8 902.1 1,030.0 1,200.9 1,232.2 1,254.9 1,281.6 1,321.2 1,317.7 2 Cash 82.1 88.2 95.8 104.5 116.1 111.5 113.4 121.0 120.5 118.5 3 U.S. government securities 19.0 23.4 17.6 16.3 15.6 14.0 16.4 17.3 17.0 18.3 4 Notes and accounts receivable 272.1 292.8 324.7 383.8 456.8 463.4 478.7 491.2 507.3 507.1 5 Inventories 315.9 342.4 374.8 426.9 501.7 525.0 524.5 525.4 542.8 540.0 6 Other 69.9 80.1 89.2 98.5 110.8 118.3 121.9 126.7 133.6 133.7 7 Current liabilities 451.6 494.7 549.4 665.5 809.1 826.0 850.5 877.2 910.9 908.1 8 Notes and accounts payable 264.2 281.9 313.2 373.7 456.3 462.8 477.0 498.3 504.0 500.8 9 Other 187.4 212.8 236.2 291.7 352.8 363.2 373.5 378.9 406.9 407.2 10 Net working capital 307.4 332.2 352.7 364.6 391.8 406.2 404.3 404.4 410.3 409.6 11 MEMO: Current ratio 1 1.681 1.672 1.642 1.548 1.484 1.492 1.475 1.461 1.450 1.451 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 1982 IInndduussttrryy 11997799 11998800 1199881111 Q4 Q1 Q21 Q3 Q41 Ql1 Q21 1 Total nonfarm business 270.46 295.63 322.61 299.58 312.24 316.73 328.25 332.06 345.46 354.83 Manufacturing 2 Durable goods industries 51.07 58.91 62.94 59.77 61.24 63.10 62.58 64.73 66.26 68.34 3 Nondurable goods industries 47.61 56.90 65.32 58.86 63.27 62.40 67.53 67.50 70.21 72.24 Nonmanufacturing 4 Mining 11.38 13.51 16.80 15.28 16.20 16.80 17.55 16.59 17.23 17.81 Transportation 5 Railroad 4.03 4.25 4.28 4.54 4.23 4.38 4.18 4.32 4.20 5.18 6 Air 4.01 4.01 3.83 3.77 3.85 3.29 3.34 4.93 3.06 3.63 7 Other 4.31 3.82 3.95 3.39 3.66 4.04 4.09 3.96 4.53 5.08 Public utilities 8 Electric 27.65 28.12 29.38 27.54 27.69 29.32 30.54 29.82 30.59 31.57 9 Gas and other 6.31 7.32 8.56 7.41 8.36 8.53 9.01 8.27 9.55 8.71 10 Trade and services 79.26 81.79 86.27 82.91 83.43 85.88 87.55 88.27 95.12 96.29 11 Communication and other2 34.83 36.99 41.27 36.11 40.32 39.02 41.89 43.69 44.17 45.97 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 Q3 Q4 Q1 Q2 Q3 ASSETS Accounts receivable, gross 1 Consumer 36.0 38.6 44.0 52.6 65.7 71.7 73.6 76.1 79.0 84.5 2 Business 39.3 44.7 55.2 63.3 70.3 66.9 72.3 72.7 78.2 76.9 3 Total 75.3 83.4 99.2 116.0 136.0 138.6 145.9 148.7 157.2 161.3 4 LESS: Reserves for unearned income and losses.... 9.4 10.5 12.7 15.6 20.0 22.3 23.3 24.3 25.7 27.7 5 Accounts receivable, net 65.9 72.9 86.5 100.4 116.0 116.3 122.6 124.5 131.4 133.6 6 Cash and bank deposits 2.9 2.6 2.6 3.5 7 Securities 1.0 1.1 .9 1.3 2244..9911 28.3 27.5 30.8 31.6 34.5 8 All other 11.8 12.6 14.3 17.3 9 Total assets 81.6 89.2 104.3 122.4 140.9 144.7 150.1 155.3 163.0 168.1 LIABILITIES 10 Bank loans 8.0 6.3 5.9 6.5 8.5 10.1 13.2 13.1 14.4 14.7 11 Commercial paper 22.2 23.7 29.6 34.5 43.3 40.5 43.4 44.2 49.0 51.2 12 Short-term, n.e.c 4.5 5.4 6.2 8.1 8.2 7.7 7.5 8.2 8.5 11.9 13 Long-term, n.e.c 27.6 32.3 36.0 43.6 46.7 52.0 52.4 51.6 52.6 50.7 14 Other 6.8 8.1 11.5 12.6 14.2 14.6 14.3 17.3 17.0 17.1 15 Capital, surplus, and undivided profits 12.5 13.4 15.1 17.2 19.9 19.8 19.4 20.9 21.5 22.4 16 Total liabilities and capital 81.6 89.2 104.3 122.4 140.9 144.7 150.1 155.3 163.0 168.1 1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined. NOTE. Components may not add to totals due to rounding. 1.53 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted Changes in accounts Extensions Repayments AAAccccccooouuunnntttsss receivable rrreeeccceeeiiivvvaaabbbllleee TTTyyypppeee ooouuutttssstttaaannndddiiinnnggg OOOcccttt... 333000,,, 1981 1981 1981 111999888111111 Aug. Sept. Oct. Aug. Sept. Oct. Aug. Sept. Oct. 1 Total 78,505 430 -619 418 20,356 18,852 17,393 19,926 19,471 16,975 2 Retail automotive (commercial vehicles) 11,226 63 99 -41 988 1,022 877 925 923 918 3 Wholesale automotive 11,986 -62 -1,216 184 5,905 5,203 4,804 5,967 6,419 4,620 4 Retail paper on business, industrial and farm equipment 27,017 -73 307 76 1,701 1,446 1,352 1,774 1,139 1,276 5 Loans on commercial accounts receivable and factored commercial accounts receivable 8,569 519 -352 -21 9,459 8,721 8,061 8,940 9,073 8,082 6 All other business credit 19,707 -17 543 220 2,303 2,460 2,299 2,320 1,917 2,079 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic NonfinancialS tatistics • January 1982 1.54 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1981 Item 1978 1979 1980 May June July Aug. Sept. Oct. Nov. 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 88.9 94.1 95.2 98.1 89.1 89.2 84.5 2 Amount of loan (thousands of dollars) 45.9 53.3 59.2 65.5 66.8 67.7 70.3 64.8 63.5 62.7 3 Loan/price ratio (percent) 75.3 73.9 73.2 76.7 72.6 73.9 74.7 74.1 73.0 77.3 4 Maturity (years) 28.0 28.5 28.2 28.5 27.5 28.3 27.2 26.6 27.4 23.4 5 Fees and charges (percent of loan amount)2 1.39 1.66 2.09 2.60 2.50 2.73 2.98 2.75 2.86 2.52 6 Contract rate (percent per annum) 9.30 10.48 12.25 13.56 14.12 14.13 14.60 14.69 15.04 15.68 Yield (percent per annum) 7 FHLBB series3 9.54 10.77 12.65 14.10 14.67 14.72 15.27 15.29 15.65 16.38 8 HUD series4 9.68 11.15 13.95 16.35 16.40 16.70 17.50 18.30 18.05 16.95 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 9.70 10.87 13.42 16.03 16.31 16.76 17.96 18.55 17.43 15.98 10 GNMA securities6 8.98 10.22 12.55 15.31 15.02 15.76 16.67 17.06 16.54 15.10 FNMA auctions7 11 Government-underwritten loans 9.77 11.17 14.11 16.93 16.17 16.65 17.63 18.99 18.13 16.64 12 Conventional loans 10.01 11.77 14.43 16.44 16.30 16.44 17.59 19.14 18.61 17.20 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 39,032 46,050 55,104 5577,,558866 57,657 57,979 58,722 5599,,668822 60,489 6600,,994499 14 FHA/VA-insured 29,941 33,673 37,364 39,030 38,988 39,108 39,368 39,792 40,043 40,056 15 Conventional 9,091 14,377 17,724 18,557 18,669 18,870 19,354 19,890 20,445' 20,885 Mortgage transactions (during period) 16 Purchases 12,301 10,812 8,099 283 247 627 944 1,125 1,000' 559944 17 Sales 9 0 0 0 0 0 0 0 0 0 Mortgage commitments8 18 Contracted (during period) 18,959 10,179 8,083 802 1,110 1,662 1,394 811 533 560 19 Outstanding (end of period) 9,185 6,409 3,278 2,328 3,103 4,039 4,399 3,997 3,447 3,354 Auction of 4-month commitments to buy Government-underwritten loans 20 Offered 12,978.1 8,860.4 8,605.4 204.8 237.6 331.9 689.5 145.9 66.3 79.0 21 Accepted. 66,,774477..22 3,920.9 4,002.0 179.1 127.1 290.4 336.6 64.1 37.3 34.4 Conventional loans 22 Offered 9,933.0 4,495.3 3,639.2 281.3 307.1 306.6 862.2 120.7 43.2 147.7 23 Accepted 5,110.9 2,343.6 1,748.5 155.9 224.0 238.2 304.3 67.9 27.5 63.1 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 24 Total 2,810 33,,554433 4,362 55,,222233 55,,225577 5,250 55,,229944 55,,443311 55,,446699 55,,228833 25 FHA/VA 1,847 1,995 2,116 2,235 2,241 2,233 2,238 2,264 2,267 2,232 26 Conventional 963 1,549 2,246 2,988 3,016 3,017 3,056 3,167 3,202 3,051 Mortgage transactions (during period) 27 Purchases 6,525 5,717 3,723 448800 113399 242 101 333377 290 441166 28 Sales 6,211 4,544 2,527 422 94 238 44 249 244 596 Mortgage commitments10 29 Contracted (during period) 7,451 5,542 3,859 130 293 866 386 365 1,834 2,011 30 Outstanding (end or period) 1,410 797 447 322 1,018 824 1,028 982 2,863 4,451 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 seror the seller) in order to obtain a loan. vicing) on accepted bids in Federal National Mortgage Association's auctions of 3. Average effective interest rates on loans closed, assuming prepayment at the 4-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. Includes some multifamily and nonprofit hospital loan commitments in ad- 5. Average gross yields on 30-year, minimum-downpayment, Federal Housing dition to 1- to 4-family loan commitments accepted in FNMA's free market auction Administration-insured first mortgages for immediate delivery in the private sec- system, and through the FNMA-GNMA tanaem plans. ondary market. Any gaps in data are due to periods of adjustment to changes in 9. Includes participation as well as whole loans. maximum permissible contract rates. 10. Includes conventional and government-underwritten loans. 6. Average net yields to investors on Government National Mortgage Association guaranteed, mortgage-backed, fully modified pass-through securities, 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 Q3 Q4 Q1 Q2 Q3 1 All holders 1,169,412 1,326,750 1,451,840 1,414,881 1,451,841 l,468,594r l,498,021r 1,525,101 7 1- to 4-family 765,217 878,931 960,422 935,393 960,408 973,460 992,497 1,010,241 3 Multifamily 121,138 128,852 136,580 134,193 136,601 137,750 138,947 140,253 4 Commercial 211,851 236,451 258,338 251,651 258,332 262,459 268,261 272,884 5 71,206 82,516 96,500 93,644 96,500 94,925' 98,316' 101,723 6 Major financial institutions 848,177 938,567 998,386 977,281 998,372 1,008,204 1,024,618 1,037,853 7 Commercial banks' 214,045 245,187 264,602 258,003 264,602 268,102 274,503 282,404 8 1- to 4-family 129,167 149,460 160,746 156,737 160,746 162,872 166,761 171,560 9 Multifamily 10,266 11,180 12,304 11,997 12,304 12,467 12,764 13,132 10 Commercial 66,115 75,957 82,688 80,626 8822,,668888 83,782 85,782 88,251 11 Farm 8,497 8,590 8,864 8,643 88,,886644 8,981 9,196 9,461 17 Mutual savings banks 95,157 98,908 99,827 99,8306 99,813 99,719 99,993 100,200 13 1- to 4-family 62,252 64,706 65,307 64,966 65,297 65,236 65,415 65,551 14 Multifamily 16,529 17,340 17,180 17,249 17,338 17,321 17,369 17,405 15 Commercial 16,319 16,963 17,120 17,031 17,118 17,102 17,149 17,184 16 Farm 57 59 60 60 60 60 60 60 17 Savings and loan associations 432,808 475,688 502,812 491,895 502,812 507,152 514,803 518,132 18 1- to 4-family 356,114 394,345 419,446 409,896 419,446 423,269 430,324 433,107 19 Multifamily 36,053 37,579 38,113 37,728 38,113 38,189 38,044 38,290 20 Commercial 40,461 43,764 45,253 44,271 45,253 45,694 46,435 46,735 21 Life insurance companies 106,167 118,784 131,145 128,077 131,145 133,231 135,319 131,117 2.2 1- to 4-family 14,436 16,193 17,911 17,996 17,911 17,847 17,646 17,889 2,3 Multifamily 19,000 19,274 19,614 19,357 19,614 19,579 19,603 19,872 24 Commercial 62,232 71,137 80,776 77,995 80,776 82,839 85,038 86,207 25 Farm 10,499 12,180 12,844 12,729 12,844 12,966 13,032 13,149 26 Federal and related agencies „ 81,739 97,084 114,300 110,526 114,300 116,243 120,040 124,511 27 Government National Mortgage Association 3,509 3,852 4,642 4,389 4,642 4,826 4,955 4,380 28 1- to 4-family 877 763 704 719 704 696 699 690 29 Multifamily 2,632 3,089 3,938 3,730 3,938 4,130 4,256 3,690 30 Farmers Home Administration 926 1,274 3,492 3,525 3,492 2,837 3,595 4,295 31 1- to 4-family 288 417 916 978 916 1,321 1,565 1,765 32 Multifamily 320 71 610 774 610 528 489 564 33 Commercial 101 174 411 370 411 479 576 651 34 Farm 217 612 1,555 1,403 1,555 509 965 1,315 35 Federal Housing and Veterans Administration 5,305 5,555 5,640 5,600 5,640 5,799 5,895' 6,014 36 1- to 4-family 1,673 1,955 2,051 1,986 2,051 2,135 2,172 2,224 37 Multifamily 3,632 3,600 3,589 3,614 3,589 3,664 3,723 3,790 38 Federal National Mortgage Association 43,311 51,091 57,327 55,632 57,327 57,362 57,657 59,682 39 1- to 4-family 37,579 45,488 51,775 50,071 51,775 51,842 52,181 54,227 40 Multifamily 5,732 5,603 5,552 5,561 5,552 5,520 5,476 5,455 41 Federal Land Banks 25,624 31,277 38,131 36,837 38,131 40,258 42,681 44,708 42 1- to 4-family 927 1,552 2,099 1,985 2,099 2,228 2,401 2,605 43 Farm 24,697 29,725 36,032 34,852 36,032 38,030 40,280 42,103 44 Federal Home Loan Mortgage Corporation 3,064 4,035 5,068 4,543 5,068 5,161 5,257 5,432 45 1- to 4-family 2,407 3,059 3,873 3,459 3,873 3,953 4,025 4,166 46 Multifamily 657 976 1,195 1,084 1,195 1,208 1,232 1,266 47 Mortgage pools or trusts2 88,633 119,278 142,258 136,583 142,258 147,246 151,374 155,487 48 Government National Mortgage Association 54,347 76,401 93,874 89,452 93,874 97,184 100,558 103,750 49 1- to 4-family 52,732 74,546 91,602 87,276 91,602 94,810 98,057 101,068 50 Multifamily 1,615 1,855 2,272 2,176 2,272 2,374 2,501 2,682 51 Federal Home Loan Mortgage Corporation 11,892 15,180 16,854 16,659 16,854 17,067 17,565 17,936 52 1- to 4-family 9,657 12,149 13,471 13,318 13,471 13,641 14,115 14,401 53 Multifamily 2,235 3,031 3,383 3,341 3,383 3,426 3,450 3,535 54 Farmers Home Administration 22,394 27,697 31,530 30,472 31,530 32,995 33,251 33,801 55 1- to 4-family 13,400 14,884 16,683 16,226 16,683 16,640 16,750 16,900 56 Multifamily 1,116 2,163 2,612 2,235 2,612 2,853 3,072 3,172 57 Commercial 3,560 4,328 5,271 5,059 5,271 5,382 5,531 55,,663311 58 Farm 4,318 6,322 6,964 6,952 6,964 8,120 7,898 88,,009988 59 Individual and others3 150,863 171,821 196,896 190,491 196,911 196,901' 201,989' 207,250 60 1- to 4-family 83,708 99,414 113,838 109,780 113,834 116,970 120,386 124,088 61 Multifamily 21,351 23,251 26,058 25,407 26,081 26,491 26,968 27,400 62 Commercial 22,883 24,128 26,819 26,299 26,815 27,181 27,750 28,225 63 Farm 22,921 25,028 30,181 29,005 30,181 26,259' 26,885' 27,537 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 • January 1982 1.56 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net ChangeA Millions of dollars 1981 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11997788 11997799 11998800 May June July Aug. Sept. Oct. Nov. Amounts outstanding (end of period) 1 Total 273,645 312,024 313,435 315,465 318,459 320,886 324,653 328,296 328,826 328,944 Bv major holder •> Commercial banks 136,016 154.177 145.765 142.143 143.310 144.020 144.769 145.287 145.090 144,560 3 Finance companies 54.298 68.318 76.756 81.794 82.723 83.924 86.152 88.698 89,583 89.956 4 Credit unions 44,334 46.517 44.041 45.055 45.686 46.096 46.605 46.791 46.416 46,092 5 Retailers2 25,987 28,119 29.410 27.319 27.412 27,469 27,494 27.712 28,046 28.563 6 Savings and loans 7,097 8.424 9.911 11.148 11.115 10.959 11.125 11.236 11,348 11.529 7 Gasoline companies 3,220 3.729 4.717 5.157 5.364 5,597 5.716 5.771 5,562 5.452 8 Mutual savings banks 2,693 2.740 2.835 2.849 2.849 2,821 2.792 2.801 2.781 2,792 Bv major tvpe of credit 9 Automobile 101.647 116.362 116.327 118.932 119.685 121.002 123.219 125.646 126,235 125,929 10 Commercial banks 60,510 67.367 61.025 59.169 59.192 59.434 59,485 59.394 59,133 58.669 11 Indirect paper 33.850 38.338 34.857 33,913 33.996 34,270 34.501 34,656 34.638 34,421 12 Direct loans 26,660 29.029 26.168 25.256 25.196 25.164 24,984 24.738 24,495 24,248 13 Credit unions 21,200 22.244 21.060 21.545 21.847 22.044 22.286 22.375 22,196 22.041 14 Finance companies 19,937 26.751 34.242 38.218 38.646 39.525 41.448 43.877 44,906 45,219 15 Revolving 48.309 56.937 59.862 57.524 58.470 58.976 59.745 60.415 60,651 61,166 16 Commercial banks 24,341 29.862 30.001 29.096 29.722 29.923 30.530 30.921 31.012 31,125 17 Retailers 20.748 23.346 25.144 23.271 23.384 23.456 23.499 23,723 24.077 24,589 18 Gasoline companies 3,220 3.729 4.717 5.157 5.364 5.597 5.716 5.771 5.562 5,452 19 Mobile home 15,235 16.838 17.327 17.626 17.724 17.784 17.988 18,157 18.329 18,385 20 Commercial banks 9,545 10.647 10.376 10,159 10.179 10.192 10.242 10.274 10.317 10.272 21 Finance companies 3,152 3.390 3.745 3.909 3.990 4.076 4.178 4,282 4.384 4,439 22 Savings and loans 2,067 2.307 2.737 3.079 3.069 3.026 3.072 3,103 3.134 3,184 23 Credit unions 471 494 469 479 486 490 496 498 494 490 24 Other 108,454 121.887 119.919 121.383 122.580 123.124 123.701 124,078 123.611 123,464 25 Commercial banks 41,620 46.301 44.363 43.719 44.217 44,471 44.512 44.698 44,628 44,494 26 Finance companies 31,209 38.177 38.769 39.667 40.087 40.323 40,526 40.539 40.293 40,298 27 Credit unions 22,663 23.779 22.512 23.031 23.353 23.563 23.823 23.918 23.726 23,561 28 Retailers 5.239 4.773 4.266 4.048 4.028 4.013 3.995 3.989 3.969 3,974 29 Savings and loans 5,030 6.117 7.174 8.069 8.046 7.933 8.053 8.133 8,214 8,345 30 Mutual savings banks 2,693 2.740 2.835 2.849 2.849 2.821 2.792 2.801 2,781 2,792 Net change (during period)3 31 Total 43,079 38,381 1,410 1,346 1,930 1,954 2,859 2,819 1,014 342 Bv major holder 32 Commercial banks 23.641 18.161 -8.412 - 14 614 432 185 123 - 175 121 33 Finance companies 9.430 14.020 8.438 409 570 948 2,383 2.682 1.204 462 34 Credit unions 6,729 2.185 -2.475 391 219 532 245 -134 -209 -224 35 Retailers2 2,497 2.132 1.291 -3 416 265 -13 117 101 -214 36 Savings and loans 7 1,327 1.485 519 45 -175 42 71 32 121 37 Gasoline companies 257 509 988. 67 78 4 33 -20 72 61 38 Mutual savings banks 518 47 95 -23 -12 -52 -16 -20 -11 15 Bv major tvpe of credit 39 Automobile ... ^ 18,736 14.715 -35 -195 57 1.208 2,115 2.282 962 274 40 Commercial banks 10,933 6.857 -6.342 -208 -214 199 -91 -201 -288 -70 41 Indirect paper 6,471 4.488 -3.481 -83 -44 274 159 63 -44 60 42 Direct loans 4,462 2.369 -2.861 -125 -170 -75 -250 -264 -244 -130 43 Credit unions 3,101 1.044 -1.184 160 106 263 106 -82 -98 -77 44 Finance companies 4,702 6.814 7.491 -147 165 746 2.100 2,565 1,348 421 45 Revolving 9,035 8.628 2.925 350 1.018 477 491 293 390 53 46 Commercial banks 5,967 5.521 139 230 580 156 440 171 138 178 47 Retailers 2,811 2.598 1.798 53 360 317 18 142 180 -186 48 Gasoline companies 257 509 988 67 78 4 33 -20 72 61 49 Mobile home 286 1.603 488 243 89 67 176 175 135 58 50 Commercial banks 419 1.102 -271 7 -12 20 44 48 41 -26 51 Finance companies 74 238 355 78 85 81 93 102 74 42 52 Savings and loans -276 240 430 152 14 -44 37 26 23 45 53 Credit unions 69 23 -25 6 2 10 2 -1 -3 -3 54 Other 15,022 13.435 -1.968 948 766 202 77 69 -473 -43 55 Commercial banks 6,322 4.681 -1.938 -43 260 57 -208 105 -66 39 56 Finance companies 4,654 6.968 592 478 320 121 190 15 -218 -1 57 Credit unions 3,559 1.118 -1.266 225 111 259 137 -51 -108 -144 58 Retailers -314 -466 -507 -56 56 -52 -31 -25 -79 -28 59 Savings and loans 283 1.087 1.056 367 31 -131 5 45 9 76 60 Mutual savings banks 518 47 95 -23 -12 -52 -16 -20 -11 15 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 j^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 »F l_l , s May June July Aug. Sept. Oct. Nov. Extensions 1 Total 297,668 324,777 305,887 28,149 29,005 28,750 28,899 29,428 26,952 27,499 By major holder ? Commercial banks 142,433 154,733 133,605 12,055 12,483 12,433 12,034 12,036 11,244 12,043 3 Finance companies 50,505 61,518 60.801 4,937 5,251 5,439 6,385 7,158 5,327 5,287 4 Credit unions 38,111 34,926 29.594 3,212 3,137 3,299 2,913 2,558 2,621 2,571 5 Retailers1 44,571 47,676 50.959 4,486 5,018 4,826 4,616 4,727 4,729 4,405 6 Savings and loans 3,724 5,901 6,621 1,068 649 383 537 573 553 668 7 Gasoline companies 16,017 18,005 22.402 2,243 2,296 2,252 2,284 2,246 2,333 2,353 8 Mutual savings banks 2,307 2,018 1.905 148 171 118 130 130 145 172 By major type of credit 9 Automobile 87,981 93,901 83.002 7,320 7,442 8,178 8,573 9,176 77,,113399 77,,774488 10 Commercial banks 52,969 53,554 40,657 3,627 3,652 3,874 3,457 3,394 2,912 3,654 11 Indirect paper 29,342 29,623 22.269 2,071 2,126 2,349 2,084 2,075 1,627 2,189 1? Direct loans 23,627 23,931 18.388 1,556 1,526 1,525 1,373 1,319 1,285 1,465 13 Credit unions 18,539 17,397 15,294 1,608 1,553 1,663 1,537 1,337 1,308 1,342 14 Finance companies 16,473 22,950 27,051 2,085 2,237 2,641 3,579 4,445 2,919 2,752 15 Revolving 105,125 120,174 129,580 11,904 12,668 12,190 11,964 12,335 12,208 11,861 16 Commercial banks 51,333 61,048 61,847 5,613 5,905 5,557 5,528 5,831 5,555 5,555 17 Retailers 37,775 41,121 45,331 4,048 4,467 4,381 4,152 4,258 4,320 3,953 18 Gasoline companies 16,017 18,005 22,402 2,243 2,296 2,252 2,284 2,246 2,333 2,353 19 Mobile home 5,412 6,471 5,098 609 488 451 536 543 487 498 ?0 Commercial banks 3,697 4,542 2,942 250 259 282 297 302 266 254 21 Finance companies 886 797 898 112 122 116 120 134 123 108 22 Savings and loans 609 948 1,146 230 93 30 105 95 89 127 23 Credit unions 220 184 113 17 14 23 14 12 9 9 74 Other 99,150 104,231 88,207 8.316 8,407 7,931 7,826 7,374 7,118 7,392 75 Commercial banks 34,434 35,589 28,159 2,565 2,667 2,720 2,752 2,509 2,511 2,580 7.6 Finance companies 33,146 37,771 32,852 2,740 2,892 2,682 2,686 2,579 2,285 2,427 27 Credit unions 19,352 17,345 14,187 1,587 1,570 1,613 1,362 1,209 1,304 1,220 78 Retailers 6,796 6,555 5,628 438 551 445 464 469 409 452 79 Savings and loans 3,115 4,953 5,476 838 556 353 432 478 464 541 30 Mutual savings banks 2,307 2,018 1,905 148 171 118 130 130 145 172 Liquidations 31 254,589 286,396 304,477 26,803 27,075 26,796 26,040 26,609 25,938 27,157 By major holder V Commercial banks 118,792 136,572 142.017 12,069 11.869 12,001 11,849 11,913 11,419 11,922 33 Finance companies 41,075 47,498 52,363 4,528 4,681 4,491 4,002 4,476 4,123 4,825 34 Credit unions 31,382 32,741 32,069 2,821 2,918 2767 2,668 2,692 2,830 2,795 35 Retailers' 42,074 45,544 49,668 4,489 4,602 4561 4,629 4,610 4,628 4,619 36 Savings and loans 3,717 4,574 5,136 549 604 558 495 502 521 547 37 Gasoline companies 15,760 17,496 21,414 2,176 2,218 2,248 2,251 2,266 2,261 2,292 38 Mutual savings banks 1,789 1,971 1,810 171 183 170 146 150 156 157 By major type of credit 39 Automobile 69,245 79,186 83,037 7,515 7,385 66,,997700 6,458 6,894 66,,117777 7,474 40 Commercial banks 42,036 46,697 46,999 3,835 3,866 3,675 3,548 3,595 3,200 3,724 41 Indirect paper 22,871 25,135 25,750 2,154 2,170 2,075 1,925 2,012 1,671 2,129 47 Direct loans 19,165 21,562 21,249 1,681 1,696 1,600 1.623 1.583 1,529 1,595 43 Credit unions 15,438 16,353 16,478 1,448 1,447 1,400 1,431 1,419 1,406 1,419 44 Finance companies 11,771 16,136 19,560 2,232 2,072 1,895 1,479 1,880 1,571 2,331 45 Revolving 96,090 111,546 126,655 11,554 11,650 11,713 11,473 12,042 11,818 11,808 46 Commercial banks 45,366 55,527 61,708 5,383 5,325 5,401 5,088 5,660 5,417 5,377 47 Retailers 34,964 38,523 43,533 3,995 4,107 4,064 4,134 4,116 4,140 4,139 48 Gasoline companies 15,760 17,496 21,414 2,176 2,218 2,248 2,251 2,266 2,261 2,292 49 Mobile home 5,126 4,868 4,610 366 399 384 360 368 352 440 SO Commercial banks 3,278 3,440 3,213 243 271 262 253 254 225 280 51 Finance companies 812 559 543 34 37 35 27 32 49 66 52 Savings and loans 885 708 716 78 79 74 68 69 66 82 53 Credit unions 151 161 138 11 12 13 12 13 12 12 54 84,128 90,796 90,175 7,368 7,641 7,729 7,749 7,305 7,591 7,435 55 Commercial banks 28,112 30,908 30,097 2,608 2,407 2,663 2,960 2,404 2,577 2,541 56 Finance companies 28,492 30,803 32,260 2,262 2,572 2,561 2,496 2,564 2,503 2,428 57 Credit unions 15,793 16,227 15,453 1,362 1,459 1,354 1,225 1,260 1,412 1,364 58 Retailers 7,110 7,021 6,135 494 495 497 495 494 488 480 59 Savings and loans 2,832 3,866 4,420 471 525 484 427 433 455 465 60 Mutual savings banks 1,789 1,971 1,810 171 183 170 146 150 156 157 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 Domestic Nonfinancial Statistics • January 1982 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 211.8 273.6 336.6 395.6 387.0 371.9 404.9 385.0 389.0 339.0 404.9 416.8 2 Excluding equities 201.7 262.8 333.5 396.3 394.0 357.0 403.5 394.7 393.3 330.1 383.8 415.3 By 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 89.0 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 b Agency issues and mortgages -.4 -.1 -.9 -1.4 -1.4 -.6 -1.9 -2.3 -.5 -.6 -.6 -.5 6 All other nonfinancial sectors 126.4 204.6 279.9 342.0 349.6 292.7 361.5 355.0 344.3 272.5 313.0 327.9 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 116.3 193.8 276.7 342.6 356.7 277.8 360.1 364.7 348.6 263.6 292.0 326.3 9 Private domestic nonfinancial sectors 114.9 185.0 266.0 308.7 328.6 263.4 318.2 341.0 316.1 241.3 285.6 292.6 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 105.0 174.5 263.2 308.8 336.4 250.6 316.6 350.6 322.2 234.4 266.8 291.7 12 Debt capital instruments 98.4 123.7 172.2 193.7 200.1 179.4 202.1 203.0 197.2 177.0 181.9 162.2 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 20.5 Mortgages lb Home mortgages 39.5 64.0 96.3 108.5 113.7 81.7 116.7 117.6 109.8 76.5 87.0 76.1 16 Multifamily residential * 3.9 7.4 9.4 7.8 8.5 8.5 8.0 7.6 8.2 8.8 5.4 17 Commercial 11.0 11.6 18.5 22.1 24.4 22.4 20.5 23.4 25.4 24.8 19.9 22.6 18 Farm 4.6 5.7 7.1 7.5 11.3 9.5 8.4 11.6 11.0 10.6 8.4 9.7 19 Other debt instruments 6.6 50.7 91.0 115.1 136.3 71.1 114.5 147.6 125.0 57.4 84.9 129.5 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 46.3 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 16.9 23 Other 10.1 16.9 21.3 25.1 29.7 24.9 30.0 33.1 26.4 24.1 25.6 37.1 24 By borrowing sector 114.9 185.0 266.0 308.7 328.6 263.4 318.2 341.0 316.1 241.3 285.6 292.6 2b 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 25.3 26 Households 49.6 89.6 139.1 164.3 170.6 101.7 173.5 179.1 162.1 94.2 109.1 126.8 27 Farm 8.5 10.2 12.3 15.0 20.8 14.5 17.1 21.2 20.4 17.9 11.1 23.0 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 16.8 29 Corporate 1.7 64.3 84.6 93.2 104.8 106.1 91.3 109.3 100.2 98.4 113.8 100.8 30 Foreign 11.5 19.6 13.9 33.2 21.0 29.3 43.2 14.0 28.1 31.2 27.4 35.2 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 34.6 33 Bonds 6.2 8.6 5.1 4.2 3.9 .8 3.1 2.8 4.9 2.0 -.4 3.3 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 5.5 3b 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 3.0 3.9 3.0 4.7 4.2 3.1 2.8 5.4 4.0 5.2 Financial sectors 37 Total ftinds raised 9.7 23.4 51.4 76.8 84.3 66.7 75.2 87.8 80.8 59.8 73.5 90.9 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 38.7 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 24.0 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 14.7 41 Loans from U.S. government .9 -.4 -1.2 0 0 0 0 0 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 52.2 43 Corporate equities .5 -.2 2.6 1.8 2.5 6.2 .5 3.6 1.4 7.1 5.2 10.4 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 41.9 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 -1.7 46 Mortgages 2.3 2.1 3.1 .9 -1.2 -.9 -.7 .3 -2.6 -5.8 4.0 -2.9 47 Bank loans n.e.c -3.7 -3.7 -.3 2.8 -.4 -.5 3.0 -1.4 .6 * -.9 4.6 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 23.8 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 24.0 bl Mortgage pools 7.1 12.2 16.1 13.6 24.0 18.6 14.1 22.5 25.5 19.6 17.6 14.7 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 52.2 b3 Commercial banks 1.2 2.3 1.1 1.3 1.6 .5 1.1 1.3 1.8 .8 .3 .2 54 Bank affiliates .6 5.4 2.0 7.2 6.5 6.9 8.2 8.0 4.9 5.8 8.0 6.9 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 17.0 b6 Other insurance companies 1.0 .9 1.4 .8 .9 .9 .8 .9 .9 .9 .9 .9 by Finance companies .5 4.3 16.9 18.1 16.8 5.8 17.5 22.7 10.9 5.2 6.3 18.7 b8 REITs -1.3 -2.2 -2.3 -1.1 -.4 -1.7 -1.1 -.6 -.2 -1.4 -2.0 -.8 b9 Open-end investment companies -.3 -2.4 .4 -.5 -.6 4.4 -1.7 .7 -1.9 5.3 3.4 9.3 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 9.3 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 2.6 63 Debt instruments 210.9 286.4 382.3 471.3 475.8 417.5 478.3 479.0 472.6 382.9 452.1 495.8 64 U.S. government securities 94.9 84.6 79.9 90.5 85.7 122.3 82.5 73.8 97.6 111.3 133.2 127.8 6b 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 22.1 67 Mortgages 57.2 87.2 132.3 148.3 155.9 121.1 153.4 160.6 151.1 114.2 128.0 110.9 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 56.4 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 61.3 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 60.3 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 201.7 262.8 333.5 396.3 394.0 357.0 403.5 394.7 393.3 330.1 383.8 415.3 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 110033..00 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 24.0 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 20.8 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 40.3 Total advanced, by 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 29.3 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 40.4 9 Monetary authorities 8.5 9.8 7.1 7.0 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 40.8 11 Agency borrowing not included in line 1 10.3 15.1 21.9 36.7 48.2 43.0 39.0 43.7 52.8 44.7 41.3 38.7 Private domestic funds advanced 12 Total net advances 172.4 228.1 276.2 331.0 368.2 307.9 339.8 388.9 347.6 271.9 351.0 351.0 13 U.S. government securities 76.9 61.5 45.1 54.3 91.9 106.7 53.0 101.0 82.9 88.1 125.3 103.8 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 17.3 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 60.7 17 Other mortgages and loans 18.9 62.9 107.7 148.6 155.1 96.2 154.2 161.4 148.7 83.1 109.3 159.4 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 123.4 191.4 260.9 302.4 292.5 270.3 294.8 316.9 268.0 246.1 294.4 322.5 20 Commercial banking 29.4 59.6 87.6 128.7 121.1 99.7 124.6 130.3 112.0 58.5 140.9 101.4 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 43.8 2.2 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 79.3 23 Other finance .3 11.6 23.4 25.2 49.0 32.4 27.0 54.8 43.3 62.8 1.9 97.9 2,4 Sources of funds 123.4 191.4 260.9 302.4 292.5 270.3 294.8 316.9 268.0 246.1 294.4 322.5 2.5 Private domestic deposits 94.2 124.4 138.9 140.8 143.2 171.1 132.9 135.1 151.2 158.7 183.6 196.9 2.6 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 41.9 2,7 Other sources 30.3 58.5 95.1 123.2 115.7 81.6 126.1 141.2 90.3 79.4 83.8 83.7 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 -5.1 2,9 Treasury balances -1.7 -.1 4.3 6.8 .4 -2.6 12.4 5.0 -4.2 -2.3 -2.8 10.6 30 Insurance and pension reserves 29.7 34.3 50.1 62.2 47.8 64.1 60.8 52.3 43.4 70.0 58.1 61.6 31 Other, net 11.0 29.0 39.5 48.0 41.9 42.4 41.1 38.4 45.4 34.5 50.4 16.7 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 70.4 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 34.6 34 State and local obligations 8.4 3.3 -.8 1.4 1.4 3.1 .8 2.6 .2 -1.8 7.9 19.7 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 -12.5 36 Commercial paper -1.3 1.9 9.6 16.5 11.4 -3.8 23.1 11.4 11.4 -4.5 -3.1 7.2 37 Other 6.6 11.7 13.2 16.4 23.5 19.7 19.1 22.9 24.0 16.0 23.3 21.4 38 Deposits and currency 101.2 133.4 148.5 152.1 152.6 182.3 143.0 149.3 155.9 167.6 197.1 202.6 39 Currency 6.2 7.3 8.3 9.3 7.9 10.3 8.7 9.0 6.9 8.5 12.1 4.7 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 29.9 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 11.3 47 Money market fund shares 1.3 * .2 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 43.9 44 Security RPs .2 2.3 2.2 7.5 6.6 6.5 5.1 18.5 -5.3 5.3 7.8 7.7 45 Foreign deposits .8 1.7 1.3 2.0 1.5 .9 1.4 5.2 -2.3 .4 1.3 1.0 46 Total of credit market instruments, deposits and currency 149.1 178.5 190.7 219.1 261.9 237.5 223.7 261.8 262.0 201.5 273.4 273.0 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 24.8 48 Private financial intermediation (in percent) 71.6 83.9 94.4 91.3 79.4 87.8 86.8 81.5 77.1 90.5 85.6 91.9 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 35.6 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 11.9 51 Mutual fund shares -.3 -2.4 .4 -.5 -.6 4.4 -1.7 .7 -1.9 5.3 3.4 9.3 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 2.6 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 28.8 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 -16.9 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, bankborrowings 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 How 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 • January 1982 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1981 MMeeaassuurree 11997788 11997799 11998800 Mar. Apr. May June July Aug. Sept.' Oct/ Nov.' Dec. 1 Industrial production1 146.1 152.5 147.0 152.1 151.9 152.7 152.9 153.9 153.6 151.6 149.2 146.4 143.3 Market groupings 2 Products, total 144.8 150.0 146.7 150.7 151.3 152.3 152.7 153.0 152.6 151.0 149.6 147.8 145.8 3 Final, total 135.9 147.2 145.3 149.0 149.9 151.3 151.4 152.1 151.5 150.0 149.1 147.5 145.5 4 Consumer goods 149.1 150.8 145.4 148.3 148.9 150.7 150.3 150.7 149.6 147.8 146.9 145.0 142.3 5 Equipment 132.8 142.2 145.2 150.0 151.4 152.1 153.0 154.1 154.0 152.9 152.2 151.0 149.9 6 Intermediate 154.1 160.5 151.9 157.1 156.3 156.1 154.9 156.2 156.8 154.6 151.4 149.2 147.0 7 Materials 148.3 156.4 147.6 154.4 152.9 153.4 154.0 155.3 155.2 152.5 148.5 144.1 139.5 Industry groupings 8 Manufacturing 146.7 153.6 146.7 151.6 152.0 152.8 152.4 153.2 153.2 151.1 148.2 145.1 141.7 Capacity utilization (percent)1,2 9 Manufacturing 84.4 85.7 79.1 79.8 79.8 80.0 79.6 79.8 79.6 78.3 76.6 74.8 72.9 10 Industrial materials industries .... 85.6 87.4 80.0 82.1 81.1 81.2 81.3 81.9 81.7 80.0 77.8 75.3 72.7 11 Construction contracts (1972 = 100)3 174.1 185.6 161.8 183.0 172.0 160.0 170.0 153.0 156.0 159.0 157.0 142.0 n.a. 12 Nonagricultural employment, total4 . 131.8 136.5 137.6 138.8 139.0 139.1 139.2 139.6 139.7 139.9 139.6 139.1 138.6 13 Goods-producing, total 109.8 113.5 110.3 110.3 110.3 110.3 110.8 111.3 111.3 111.2 110.1 109.0 107.9 14 Manufacturing, total 105.4 108.2 104.4 103.8 104.6 105.0 105.0 105.6 105.4 105.4 104.1 102.9 101.7 15 Manufacturing, productionworker 103.0 105.3 99.4 98.4 99.2 99.6 99.6 100.1 99.9 99.8 98.1 96.4 9955..00 16 Service-producing 143.8 149.1 152.6 154.5 154.7 155.0 154.8 155.2 155.2 155.6 155.7 155.5 155.4 17 Personal income, total 273.3 308.5 342.9 371.5 373.6 375.8 378.5 384.0' 387.8' 390.9 392.8 395.1 n.a. 18 Wages and salary disbursements .. 258.8 289.5 314.7 340.2 341.8 343.6 345.2 347.8 351.4 353.2 355.2 357.6 n.a. 19 Manufacturing 223.1 248.6 261.5 282.9 286.1 289.2 289.9 292.1 294.3 294.9 292.9 291.8 n.a. 20 Disposable personal income5 267.0 299.6 332.5 358.7 360.1 362.3 364.4' 369.7' 372.9r 374.5 378.6 381.4 n.a. 21 Retail sales6 253.8 281.6 303.8 334.8 328.1 326.7 333.9 333.8 338.5 338.9 331.1 333.3 334.5 Prices7 22 Consumer 195.4 217.4 246.8 265.1 266.8 269.0 271.3 274.4 276.5 279.3 279.9 280.7 n.a. 23 Producer finished goods 194.6 216.1 246.9 266.0 268.5 269.6 270.5 271.8 271.2 271.1 274.0 274.5 n.a. 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 McGiaw-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 1981 1981 1981 SSeerriieess Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Manufacturing 151.3 152.4 152.5 145.0 189.4 190.9 192.4 193.9 79.9 79.8 79.3 74.8 2 Primary processing 157.5 156.5 155.8r 143.8 193.8 195.0 196.3 197.5 81.3 80.3 79.4 72.8 3 Advanced processing 148.1 150.2 150.7r 145.6 187.1 188.7 190.4 192.0 79.1 79.6 79.2 75.8 4 Materials 154.2 153.4 154.3 144.0 187.6 188.9 190.1 191.3 82.2 81.2 81.2 75.3 5 Durable goods 150.9 152.3 152.8' 140.3 191.8 192.9 194.0 195.1 78.7 79.0 78.7 71.9 6 Metal materials 117.5 112.8 114.2 99.0 141.5 141.7 141.9 142.1 83.0 79.6 80.5 69.6 7 Nondurable goods 179.2 178.4 175.8 164.5 207.3 209.2 211.2 213.1 86.5 85.3 83.3 77.2 8 Textile, paper, and chemical 186.7 185.9 182.8 169.1 217.1 219.4 221.7 223.9 86.0 84.8 82.5 75.6 9 Textile 114.8 114.5 115.5 108.2 140.1 140.6 141.0 141.6 81.9 81.4 81.8 76.4 10 Paper 151.4 151.0 152.2 149.4 159.7 160.7 161.9 162.8 94.8 93.9 94.1 91.8 11 Chemical 232.7 231.6 224.9 204.1 274.1 277.5 281.0 284.4 84.9 83.5 80.0' 71.8 12 Energy materials 130.9 125.1 131.6 127.7 153.5 154.2 155.0 155.6 85.3 81.1 84.9' 82.1 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 High Low High Low Nov. Apr. May June July Aug. Sept. Oct.' Nov. Capacity utilization rate (percent) 13 Manufacturing 88.0 69.0 87.2 74.9 n.a. 79.8 80.0 79.6 79.8 79.6 78.4 76.9 n.a. 14 Primary processing 93.8 68.2 90.1 71.0 n.a. 80.7 80.6 79.5 80.1 79.9 78.1 75.6 n.a. 15 Advanced processing 85.5 69.4 86.2 77.2 n.a. 79.4 79.8 79.7 79.8 79.4 78.5 77.5 n.a. 16 Materials 92.6 69.4 88.8 73.8 80.5 81.1 81.2 81.3 81.9 81.7 80.0 77.8 75.3 17 Durable goods 91.5 63.6 88.4 68.2 76.6 78.8 79.2 78.9 79.3 79.5 77.4' 74.8 72.0 18 Metal materials 98.3 68.6 96.0 59.6 81.4 79.9 80.3 78.7 79.5 83.0 79.1' 73.9 70.3 19 Nondurable goods 94.5 67.2 91.6 77.5 85.3 85.9 85.6 84.3 83.9 83.0 82.9 80.4 77.1 20 Textile, paper, and chemical.... 95.1 65.3 92.2 75.3 84.9 85.5 85.4 83.5 83.2 82.3 82.1 79.1 75.6 21 Textile 92.6 57.9 90.6 80.9 81.4 81.9 81.7 80.5 82.0 82.3 81.3 78.8 76.2 22 Paper 99.4 72.4 97.7 89.3 94.4 94.9 93.9 93.0 92.9' 93.6 95.7 92.0 91.6 23 Chemical 95.5 64.2 91.3 70.7 83.3 84.1 84.3 82.0 81.2 79.7 79.2' 76.2 71.9 24 Energy materials 94.6 84.8 88.3 82.7 84.4 79.9 79.8 83.7 86.2 85.6 83.0' 82.6 82.1 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 June July Aug. Sept. Oct. Nov. Dec. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 161,058 163,620 166,246 168,480 168,685 168,855 169,049 169,252 169,435 169,605 2 Labor force (including Armed Forces)1 ... 102,537 104,996 106,821 108,307 108,603 108,762 108,401 108,894 109,187 108,814 3 Civilian labor force 100,420 102,908 104,719 106,176 106,464 106,602 106,236 106,736 107,029 106,650 4 Nonagricultural industries2 91,031 93,648 93,960 95,127 95,704 95,574 94,959 94,880 94,662 94,072 5 Agriculture 3,342 3,297 3,310 3,265 3,258 3,370 3,310 3,337 33,663 3,115 Unemployment 6 Number 6,047 5,963 7,448 7,784 7,502 7,657 7,966 8,520 9,004 9,462 7 Rate (percent of civilian labor force) . 6.0 5.8 7.1 7.3 7.0 7.2 7.5 8.0 8.4 8.9 8 Not in labor force 58,521 58,623 59,425 60,173 60,082 60,093 60,648 60,359 60,248 60,791 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 86,697 89,823 90,564 91,615 91,880 91,901 92,033 91,832' 91,499' 91,206 10 Manufacturing 20,505 21,040 20,300 20,424 20,535 20,505 20,496 20,241' 20,008' 19,785 11 Mining 851 958 1,020 1,110 1,132 1,151 1,162 1,162' 1,175' 1,172 12 Contract construction 4,229 4,463 4,399 4,284 4,272 4,275 4,272 4,259' 4,228' 4,194 13 Transportation and public utilities 4,923 5,136 5,143 5,149 5,167 5,170 5,186 5,168' 5,146' 5,136 14 Trade 19,542 20,192 20,386 20,717 20,796 20,862 20,872 20,916' 20,821' 20,726 15 Finance 4,724 4,975 5,168 5,331 5,344 5,354 5,366 5,360' 5,356' 5,361 16 Service 16,252 17,112 17,901 18,560 18,642 18,667 18,774 18,788' 18,832' 18,865 17 Government 15,672 15,947 16,249 16,040 15,992 15,917 15,905 15,938' 15,933' 15,967 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, ana members of the Armed Forces.. Data are adjusted to the March 1979 bor). benchmark and only seasonally adjusted data are available at this time. Based on 2. Includes self-employed, unpaid family, and domestic service workers. data from Employment and Earnings (U.S. Department of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • January 1982 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. Grouping 1 p p 9 r o 6 o r 7 - - aa 11 vv 99 ee 88 rr 00 -- 1980 1981 tion aaggee Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.? Dec.e Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 147.0 150.4 151.4 151.8 152.1 151.9 152.7 152.9 153.9 153.6 151.6 149.2 146.4 143.3 2 Products 60.71 146.7 149.4 149.9 150.2 150.7 151.3 152.3 152.2 153.0 152.6 151.0 149.6 147.8 145.8 3 Final products 47.82 145.3 147.8 147.8 148.2 149.0 149.9 151.3 151.4 152.1 151.5 150.0 149.1 147.5 145.5 4 Consumer goods 27.68 145.4 147.1 146.9 147.8 148.3 148.9 150.7 150.3 150.7 149.6 147.8 146.9 145.0 142.3 5 Equipment 20.14 145.2 148.8 149.1 148.7 150.0 151.4 152.1 153.0 154.1 154.0 152.9 152.2 151.0 149.9 6 Intermediate products 12.89 151.9 155.4 157.5 157.7 157.1 156.3 156.1 154.9 156.2 156.8 154.6 151.4 149.2 147.0 7 Materials 39.29 147.6 152.2 153.8 154.3 154.4 152.9 153.4 154.0 155.3 155.2 152.5 148.5 144.1 139.5 Consumer goods 8 Durable consumer goods 7.89 136.7 141.3 140.1 141.2 143.6 144.3 147.3 147.9 146.5 142.5 140.4 136.3 129.8 124.4 9 Automotive products 2.83 132.8 146.1 130.4 133.9 139.2 142.9 151.8 153.1 147.6 137.6 139.1 132.8 122.4 120.4 10 Autos and utility vehicles ... 2.03 110.1 116.2 102.7 108.5 116.1 120.2 129.1 131.4 123.0 107.8 110.0 101.7 89.2 87.0 11 Autos 1.90 103.6 105.9 93.3 101.1 107.8 113.2 120.0 122.2 118.1 104.0 103.3 92.5 81.1 78.1 12 Auto parts and allied goods . 80 190.4 197.0 200.8 198.4 197.5 200.8 209.5 208.0 210.0 213.1 212.9 211.8 206.5 205.0 13 Home goods 5.06 138.9 142.6 145.6 145.2 146.1 145.0 144.8 145.0 145.8 145.3 141.1 138.2 133.9 126.7 14 Appliances, AJC, and TV ... 1.40 117.3 126.4 132.2 125.8 129.1 121.2 121.4 120.0 123.6 126.8 119.0 116.7 106.2 89.5 15 Appliances and TV 1.33 119.5 128.7 134.1 128.2 131.2 122.6 122.3 121.4 124.8 128.9 121.4 118.7 107.2 16 Carpeting and furniture 1.07 155.2 157.3 156.2 160.4 160.2 165.2 163.1 166.3 163.2 160.1 158.6 152.6 148.9 17 Miscellaneous home goods .. 2.59 143.8 145.4 148.4 149.5 149.4 149.7 149.9 149.8 150.7 149.2 145.8 143.9 142.8 140.8 18 Nondurable consumer goods 19.79 148.9 149.3 149.6 150.5 150.1 150.7 152.1 151.2 152.3 152.5 150.8 151.2 151.0 149.4 19 Clothing 4.29 126.0 121.0 121.2 120.9 118.9 120.6 122.1 120.9 122.8 121.9 119.3 119.3 20 Consumer staples 15.50 155.2 157.2 157.5 158.6 158.8 159.0 160.3 159.6 160.5 161.0 159.5 160.0 ' 159^8 ' 158^6 21 Consumer foods and tobacco 8.33 147.4 149.0 149.3 150.5 150.5 150.2 151.3 149.6 150.5 150.6 149.5 150.8 151.0 22 Nonfood staples 7.17 164.3 166.6 167.0 168.1 168.4 169.3 170.8 171.3 172.2 173.0 171.1 171.7 170.0 168.7 23 Consumer chemical products 2.63 208.9 213.8 213.0 219.3 220.0 224.1 225.1 224.4 226.8 227.7 227.5 224.1 221.3 24 Consumer paper products . 1.92 123.1 127.7 127.9 129.0 128.7 127.4 127.7 129.2 127.6 128.9 127.7 127.7 128.0 25 Consumer energy products 2.62 149.8 147.8 149.4 145.4 143.7 144.9 147.9 148.9 150.0 150.4 146.4 148.7 114499..44 26 Residential utilities 1.45 167.9 166.2 167.5 161.3 161.1 162.9 168.9 170.4 172.6 169.7 162.8 167.1 Equipment 27 Business 12.63 173.2 177.1 177.7 177.5 179.3 181.0 182.0 183.6 184.8 184.8 182.7 180.5 178.4 176.3 28 Industrial 6.77 156.5 159.1 161.5 163.4 164.6 165.9 167.0 169.0 169.4 170.2 168.9 166.9 164.9 162.9 29 Building and mining 1.44 242.8 253.3 264.0 270.4 276.6 281.7 286.4 289.7 290.3 293.0 293.6 295.6 293.3 292.0 30 Manufacturing 3.85 128.2 128.5 127.7 128.4 128.6 128.5 128.4 130.6 130.8 130.8 129.3 125.7 123.4 121.0 31 Power 1.47 148.9 146.5 149.1 149.9 149.3 149.9 150.8 151.2 151.6 152.7 150.4 148.4 147.6 146.0 32 Commercial transit, farm 5.86 192.4 198.0 196.6 193.7 196.2 198.6 199.4 200.4 202.5 200.9 198.5 196.2 194.0 191.8 33 Commercial 3.26 237.8 248.5 249.3 250.4 252.7 254.5 258.0 259.9 263.7 264.3 264.2 259.8 258.3 256.2 34 Transit 1.93 139.9 139.0 133.1 124.8 127.8 131.5 130.0 129.7 128.4 124.6 121.0 120.6 116.5 116.0 35 Farm 67 123.1 122.4 122.9 116.4 118.5 119.7 113.9 114.9 118.0 111.8 102.1 104.6 103.9 36 Defense and space 7.51 98.2 101.0 100.9 100.5 100.7 101.5 102.0 101.7 102.6 102.8 103.0 104.5 104.9 105.4 Intermediate products 37 Construction supplies 6.42 140.9 145.2 148.4 148.9 149.0 147.9 146.5 143.4 144.3 144.0 139.7 135.3 132.1 129.2 38 Business supplies 6.47 162.8 165.5 166.6 166.4 165.1 164.7 165.6 166.2 168.0 169.5 169.4 167.5 166.2 39 Commercial energy products .. 1.14 172.3 175.4 175.5 174.0 174.7 175.2 179.0 177.7 180.0 176.6 174.2 174.2 174.7 Materials 40 Durable goods materials 20.35 143.0 147.4 150.0 150.6 152.2 151.8 152.8 152.4 153.6 154.3 150.4 145.6 140.4 134.9 41 Durable consumer parts 4.58 107.8 113.8 114.7 114.3 118.4 119.7 121.1 123.1 123.2 121.8 114.5 107.4 100.2 93.2 42 Equipment parts 5.44 187.2 186.1 189.7 188.9 191.1 192.8 194.0 193.2 193.8 194.7 192.7 190.3 187.1 185.1 43 Durable materials n.e.c 10.34 135.3 142.0 144.7 146.6 146.7 144.3 145.1 143.9 145.9 147.4 144.1 138.9 133.7 127.0 44 Basic metal materials 5.57 105.3 114.3 116.6 118.6 118.3 113.8 114.3 112.8 114.5 117.4 113.1 106.4 100.9 45 Nondurable goods materials 10.47 171.5 179.6 180.2 179.9 177.5 179.3 179.0 176.9 176.5 175.4 175.5 170.6 164.4 158.5 46 Textile, paper, and chemical materials 7.62 177.7 187.6 187.6 187.3 185.1 186.8 187.3 183.7 183.5 182.4 182.5 176.3 169.3 161.8 47 Textile materials 1.85 117.4 112.2 114.8 115.1 114.4 115.1 114.9 113.4 115.5 116.0 114.9 111.5 107.9 48 Paper materials 1.62 145.6 151.1 150.5 151.0 152.6 152.2 150.9 149.8 150.0 151.5 155.1 149.6 149.2 49 Chemical materials 4.15 217.2 235.9 234.7 233.8 229.5 232.4 233.9 228.4 227.1 224.1 223.4 215.7 204.5 50 Containers, nondurable 1.70 165.9 169.9 173.0 172.3 168.7 172.0 167.8 171.4 171.7 169.4 170.9 166.7 116633,,77 51 Nondurable materials n.e.c. ... 1.14 138.2 139.7 141.0 141.8 139.6 139.7 140.5 139.6 136.6 137.8 136.2 138.3 113322..55 52 Energy materials 8.48 129.3 129.6 130.2 131.6 130.9 123.1 123.0 129.3 133.3 132.6 128.9 128.3 127.8 127.1 53 Primary energy 4.65 115.2 116.0 115.8 118.2 116.9 104.2 104.4 113.7 120.3 120.9 117.4 116.7 115.7 54 Converted fuel materials 3.82 146.5 146.1 147.8 148.0 148.1 146.1 145.5 148.2 149.2 146.9 142.9 142.4 142.4 Supplementary groups 55 Home goods and clothing 9.35 133.0 132.7 134.4 134.1 133.6 133.8 134.4 133.9 135.2 134.5 131.1 129.5 127.2 121.8 56 Energy, total 12.23 137.7 137.7 138.5 138.5 137.7 132.6 133.5 138.0 141.2 140.5 136.8 136.9 136.8 136.3 57 Products 3.76 156.6 156.1 157.3 154.0 153.1 154.1 157.3 157.6 159.1 158.4 154.8 156.4 157.1 58 Materials 8.48 129.3 129.6 130.2 131.6 130.9 123.1 123.0 129.3 133.3 132.6 128.9 128.3 127.8 127.1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 1967 1980 1981 SIC pro- 1980 Grouping code por- avg. tion Feb. Mar. Apr. May June July Aug. Sept/ Oct. No\.P Dec Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities 12.05 149.5 152.4 153.3 154.1 154.8 150.5 152.1 156.3 159.1 158.2 155.8 156.4 155.3 154.7 2 Mining 6.36 132.7 138.6 140.4 143.1 143.2 135.2 135.4 141.7 146.5 146.0 145.0 145.7 144.0 143.8 3 Utilities 5.69 168.3 167.9 167.6 166.4 167.8 167.6 170.7 172.7 173.1 171.9 167.8 168.4 167.9 167.0 4 Electric 3.88 189.7 189.5 189.3 187.1 188.9 188.6 192.9 195.6 196.2 194.2 188.3 189.3 189.0 188.0 5 Manufacturing 87.95 146.7 150.4 151.1 151.2 151.6 152.0 152.8 152.4 153.2 153.2 151.1 148.2 145.1 141.7 6 Nondurable 35.97 161.2 165.0 165.6 166.2 165.3 165.9 166.4 165.8 167.1 167.3 165.9 163.2 160.5 157.2 7 Durable 51.98 136.7 140.3 141.0 140.8 142.1 142.5 143.5 143.2 143.6 143.4 140.9 137.9 134.4 131.0 Mining 8 Metal 10 .51 109.2 122.2 125.5 134.1 131.1 123.1 125.0 123.5 123.6 124.1 121.5 119.3 108.3 9 Coal 11.12 .69 146.7 153.5 147.5 159.0 151.2 75.9 77.0 122.9 170.0 167.4 161.9 166.9 160.8 158.8 10 Oil and gas extraction 13 4.40 133.3 138.4 141.4 142.2 144.1 146.1 146.2 148.2 147.7 148.2 148.8 149.2 148.9 149.3 11 Stone and earth minerals . 14 .75 132.8 137.4 138.4 140.0 138.8 133.7 132.2 132.7 133.3 128.2 123.4 124.0 124.2 Nondurable manufactures 12 Foods 8.75 149.6 151.0 151.9 152.5 152.4 151.9 152.2 151.3 151.6 151.9 150.7 151.6 152.4 13 Tobacco products .67 119.9 118.8 123.5 125.4 125.7 122.2 122.3 120.9 121.3 123.8 122.4 122.0 14 Textile mill products 2.68 138.6 135.6 138.4 139.3 136.2 138.9 138.8 138.3 139.4 140.7 136.3 132.4 127.9 15 Apparel products 3.31 127.0 122.7 123.8 121.6 120.2 121.6 122.6 121.1 122.6 122.6 122.5 118.4 16 Paper and products 3.21 151.1 157.0 156.5 156.0 157.6 157.0 155.9 153.4 154.9 156.7 158.6 153.3 1513 152.1 17 Printing and publishing 4.72 139.6 143.0 143.9 144.8 142.7 141.6 141.3 143.1 144.4 146.1 145.9 145.9 143.5 18 Chemicals and products .... 7.74 207.1 220.5 218.9 219.8 218.5 219.8 220.6 218.4 221.5 219.2 216.3 209.7 203.7 19 Petroleum products 1.79 132.9 131.3 133.1 131.5 130.3 130.0 129.8 129.3 128.7 130.4 129.1 128.3 128.4 129.1 20 Rubber ana plastic products. 2.24 235.7 262.3 264.0 270.2 269.5 275.2 280.3 285.1 285.3 286.7 282.2 276.3 267.5 21 Leather and products 70.1 67.9 68.9 68.3 68.9 69.8 68.4 70.1 69.6 69.7 71.2 69.7 Durable manufactures 22 Ordnance, private and government 19.91 3.64 78.5 79.6 78.6 78.4 78.5 79.8 80.9 80.9 81.8 82.3 82.6 83.9 23 Lumber and products 24 1.64 119.3 123.6 127.4 126.2 125.6 126.3 126.2 122.5 122.9 119.1 113.2 109.6 106.2 24 Furniture and fixtures 25 1.37 150.0 148.6 150.0 154.3 155.6 158.7 158.9 162.4 164.9 163.3 159.9 157.2 154.5 25 Clay, glass, stone products 32 2.74 147.5 153.0 156.8 156.4 154.6 154.3 151.7 148.1 148.7 148.2 147.3 143.5 139.5 26 Primary metals 33 6.57 102.3 111.5 114.1 114.5 114.9 110.6 111.9 107.4 109.4 113.1 108.6 102.0 96.3 27 Iron and steel 331.2 4.21 92.4 103.0 108.7 108.4 108.0 103.4 105.6 98.5 99.7 105.1 99.2 91.8 86.8 28 Fabricated metal products 34 5.93 134.1 135.7 135.8 137.6 139.2 139.5 138.4 139.3 140.1 140.0 136.8 133.7 129.0 125.1 29 Nonelectrical machinery .. 35 9.15 162.8 166.9 167.3 168.3 169.2 169.7 172.1 174.1 176.7 176.4 173.9 170.2 168.1 164.3 30 Electrical machinery 36 8.05 172.8 175.1 177.6 174.9 177.4 178.8 179.9 180.1 180.9 182.6 180.0 179.6 175.7 170.2 31 Transportation equipment 37 9.27 116.9 120.4 117.4 116.1 119.5 121.3 123.7 123.4 119.8 115.4 114.2 110.6 105.4 103.9 32 Motor vehicles and parts 371 4.50 119.0 125.7 120.0 119.9 127.1 130.7 136.4 137.5 130.5 123.1 120.4 113.8 104.3 100.9 33 Aerospace and miscellaneous transportation equipment 372-9 4.77 114.9 115.4 114.9 112.6 112.3 112.4 111.8 110.2 109.7 108.2 108.5 107.5 106.4 106.7 34 Instruments 38 2.11 171.1 171.9 173.9 171.1 170.0 170.0 170.6 171.3 172.1 172.3 169.7 168.6 167.0 165.0 35 Miscellaneous manufactures 39 1.51 148.3 151.0 152.9 154.9 155.4 157.3 157.0 158.8 159.4 158.6 154.2 152.5 154.3 153.0 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.41 601.9 612.4 612.9 614.S 618.0 616.2 622.2 619.2 621.4 616.5 611.5 606.2 598.9 591.5 37 Final 390.91 465.2 472.6 471.6 472.8 476.4 476.3 482.4 480.5 481.9 476.4 473.0 471.2 465.8 459.7 38 Consumer goods. 277.51 313.3 317.7 316.8 318.8 320.5 320.0 324.3 322.1 324.0 319.3 317.7 315.4 311.9 307.3 39 Equipment 113.41 152.0 154.9 154.8 154.0 155.9 156.3 158.1 158.5 157.9 157.1 155.3 155.9 154.0 152.5 40 Intermediate 116.61 136.7 139.8 141.2 141.7 141.7 139.9 139.8 138.7 139.5 140.1 138.4 134.9 133.1 131.8 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 • January 1982 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates excep tas noted. 1981 IItteemm 11997788 11997799 11998800 Apr. May June July Aug.' Sept.' Oct.' Nov. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,801 1,552 1,191 1,186 1,167 963 913 865 850 722 718 2 1-family 1,183 981 710 689 654 567 528 494 453 398 396 3 2-or-more-family 618 571 481 497 513 396 385 371 397 324 322 4 Started 2,020 1,745 1,292 1,332 1,158 1,039 1,047 941 916 864 871 5 1-family 1,433 1,194 852 897 764 688 704 606 645 508 560 6 2-or-more-family 587 551 440 435 394 351 343 335 271 356 311 7 Under construction, end of period1 1,310 1,140 896 913 894 853 822 788 765 733 i 8 1-family 765 639 515 526 506 482 462 438 425 411 t 9 2-or-more-family 546 501 382 388 388 371 361 349 340 323 1 10 Completed 1,868 1,855 1,502 1,519 1,273 1,377 1,324 1,226 1,180 1,261 n.a. 11 1-family 1,369 1,286 957 964 875 877 864 804 772 706 | 12 2-or-more-family 498 569 545 555 398 500 460 422 408 555 \ 13 Mobile homes shipped 276 277 222 265 255 246 268 230 235 207 Merchant builder activity in 1-family units 14 Number sold 818 709 530 451 478 402 408 349 318 362 403 15 Number for sale, end of period1 419 402 340 327 322 310 303 300 295 283 275 Price (thousands of dollars)2 Median 16 Units sold 55.8 62.7 64.9 68.4 71.2 68.7 69.6 72.8 66.6 69.7 72.3 Average 17 Units sold 62.7 71.9 76.6 82.9 83.7 84.7 82.7 87.3 82.7 82.7 86.3 EXISTING UNITS (1-family) 18 Number sold 3,863 3,701 2,881 2,610 2,500 2,660 2,520 2,260 2,050 1,970 1,950 Price of units sold (thous. of dollars)2 19 Median 48.7 55.5 62.1 65.3 66.3 67.7 67.5 68.1 67.1 66.0 66.2 20 Average 55.1 64.0 72.7 77.3 78.6 79.9 79.6 80.5 79.0 76.6 78.0 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 205,559 230,781 230,273 246,542 235,907 233,998 233,862' 229,844 230,892 229,806 230,253 22 Private 159,664 181,690 174,896 189,921 184,077 181,811 182,288' 180,576 178,649 178,194 177,147 23 Residential 93,423 99,032 87,260 95,206 89,719 85,971 82,916' 80,535 78,503 78,151 77,606 24 Nonresidential, total 66,241 8822,,665588 87,636 94,715 9944,,335588 95,840 9999,,337722'' 110000,,004411 110000,,114466 110000,,004433 9999,,554411 Buildings 2255 Industrial 10,993 14,953 13,839 15,504 15,503 16,243 17,182 18,295 18,344 18,558 18,267 26 Commercial 18,561 24,919 29,940 33,395 32,391 32,442 34,028 33,721 33,412 33,046 33,622 27 Other 6,739 7,427 8,654 9,196 8,903 9,735 9,241 9,367 9,402 9,553 9,081 28 Public utilities and other 29,948 35,359 35,203 36,620 37,561 37,420 38,921' 38,658 38,988 38,886 38,571 29 Public 45,896 49,088 55,371 56,620 51,830 52,186 51,574' 49,268 52,243 51,611 53,106 30 Military 1,501 1,648 1,880 2,105 2,065 2,254 2,091' 2,105 2,065 2,254 2,091 31 Highway 10,708 11,998 13,784 15,099 12,419 13,338 13,203' 12,227 12,537 11,277 n.a. 32 Conservation and development 4,457 4,586 5,089 5,681 4,894 4,912 5,226 4,711 4,904 6,523 n.a. 33 Other 29,230 30,856 34,618 33,735 32,452 31,682 31,054' 30,225 32,737 31,557 n.a. 1. Not at annual rates. NOTE. Census Bureau estimates for all series except (a) mobile homes, which 2. Not seasonally adjusted. are private, domestic shipments as reported by the Manufactured Housing Institute 3. Value of new construction data in recent periods may not be strictly comparable and seasonally adjusted by the Census Bureau, and (b) sales and prices of existing with data in prior periods due to changes by the Bureau of the Census in its units, which are published by the National Association of Realtors. All back 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 NNNooovvv... IIIttteeemmm 1980 1981 1981 111999888111 11998800 11998811 (((111999666777 NNoovv.. NNoovv.. === 111000000)))''' Dec. Mar. June Sept. July Aug. Sept. Oct. Nov. CONSUMER PRICES2 1 AH items 12.6 9.6 13.2 9.6 7.4 13.5 1.2 .8 1.2 .4 .5 280.7 ? Commodities 11.5 6.4 11.0 8.9 2.1 9.2 .8 .6 .9 .4 .2 258.0 3 Food 10.6 4.8 13.1 2.1 -.1 10.9 .8 .8 1.0 .3 .2 277.1 4 Commodities less food 12.0 7.0 9.9 12.3 3.1 8.6 .7 .5 .8 .4 .2 246.2 5 Durable 11.2 5.7 11.8 -.7 9.0 12.4 1.2 1.0 .7 .0 .3 233.2 6 Nondurable 13.0 8.6 6.2 29.8 -2.0 3.6 .1 .3 .5 .3 .2 261.1 7 14.1 14.1 16.8 10.3 15.1 19.5 1.8 1.2 1.5 .4 .8 320.6 8 Rent 8.9 8.4 9.6 7.0 7.7 10.2 .5 .8 2.5 .8 .7 215.0 9 Services less rent 14.8 15.0 17.8 10.9 16.1 20.9 2.0 1.2 1.6 .4 .9 340.8 Other groupings 10 All items less food 13.0 6.8 13.2 11.7 9.0 14.1 1.3 .8 1.2 .4 -2.8 227700..44 11 All items less food and energy 12.2 10.2 14.4 5.8 11.8 15.2 1.4 .9 1.2 .4 .5 267.2 12 Homeownership 16.6 11.5 23.1 3.1 16.9 21.3 2.1 1.1 .6 -.3 .2 367.2 PRODUCER PRICES 13 Finished goods 12.4 7.1 8.3 13.3 6.8 2.8 .4 .1 .2 .6 .5 274.5 14 Consumer 12.6 6.6 7.4 13.6 6.1 2.1 .3 .0 .2 .4 .5 274.9 15 Foods 8.1 1.5 4.3 1.6 1.8 5.6 1.4 .0 .0 -.2 -.5 252.7 16 Excluding foods 14.8 8.7 8.9 18.6 7.9 .7 -.1 .0 .3 .7 .8 282.0 17 Capital equipment 11.8 9.1 11.8 12.0 9.8 5.7 .7 .7 .0 .9 .8 272.9 18 Intermediate materials3 11.7 8.6 12.9 14.3 7.7 4.3 .4 .4 .3 .0 .4 314.3 Crude materials 19 Nonfood 19.5 12.2 27.5 39.7 9.5 2.1 .7 -.7 .6 -.8 -.6 476.9 20 Food 12.5 -14.1 -4.0 -23.1 8.6 -12.1 .3 -1.0 -2.5 -2.5 -2.1 238.3 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 • January 1982 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1980 1981 Account 1980 Q3 Q4 Q1 Q2 GROSS NATIONAL PRODUCT 1 Total 2,156.1 2,413.9 2,626.1 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 1,682.2 1,751.0 1,810.1 1,829.1 3 Durable goods 199.3 212.3 211.9 208.8 223.3 238.3 227.3 4 Nondurable goods 529.8 602.2 675.7 674.2 703.5 726.0 735.3 5 Services 619.6 696.3 785.2 799.2 824.2 845.8 866.5 6 Gross private domestic investment .. 375.3 415.8 395.3 377.1 397.7 437.1 458.6 7 Fixed investment 353.2 398.3 401.2 393.2 415.1 432.7 435.3 8 Nonresidential 242.0 279.7 296.0 294.0 302.1 315.9 324.6 9 Structures 78.7 96.3 108.8 107.3 111.5 117.2 123.1 0 Producers' durable equipment 163.3 183.4 187.1 186.8 190.7 198.7 201.5 1 Residential structures 111.2 118.6 105.3 99.2 113.0 116.7 110.7 2 Nonfarm 106.9 113.9 100.3 94.5 107.6 111.4 105.4 13 Change in business inventories. 22.2 17.5 -5.9 -16.0 -17.4 4.5 23.3 14 Nonfarm 21.8 13.4 -4.7 -12.3 -14.0 6.8 21.5 15 Net exports of goods and services . -0.6 13.4 23.3 44.5 23.3 29.2 20.8 16 Exports 219.8 281.3 339.8 342.4 346.1 367.4 368.2 17 Imports 220.4 267.9 316.5 297.9 322.7 338.2 347.5 18 Government purchases of goods and services . 432.6 473.8 534.7 533.5 558.6 576.5 577.4 19 Federal 153-4 167.9 198.9 194.9 212.0 221.6 219.5 20 State and local 279.2 305.9 335.8 338.6 346.6 354.9 357.9 By major type of product 21 Final sales, total 2,133.9 2,396.4 2,632.0 2,653.4 2,748.0 2,848.5 2,862.5 22 Goods 946.6 1,055.9 1,130.4 1,129.4 1,169.0 1,247.5 1,257.0 23 Durable 409.8 451.2 458.6 456.5 476.7 501.4 516.9 24 Nondurable 536.8 604.7 671.9 672.9 692.2 746.1 740.1 25 Services 976.3 1,097.2 1.229.6 1,249.0 1,285.3 1,317.1 1,344.7 26 Structures 233.2 260.8 266.0 258.9 276.4 288.4 284.1 27 Change in business inventories. 22.2 17.5 -5.9 -16.0 -17.4 4.5 23.3 28 Durable goods 17.8 11.5 -4.0 -8.4 .7 -4.2 18.5 29 Nondurable goods 4.4 6.0 -1.8 -7.7 -18.1 8.6 4.8 30 MEMO: Total GNP in 1972 dollars 1,436.9 1,483.0 1.480.7 1,471.9 1,485.6 1,516.4 1,510.4 NATIONAL INCOME 31 Total 1,745.4 1,963.3 2.121.4 2,122.4 2,204.8 2,291.1 2,320.9 32 Compensation of employees 1,299.7 1,460.9 1.596.5 1,597.4 1,661.8 1,722.4 1,752.0 33 Wages and salaries 1,105.4 1,235.9 1.343.6 1.342.3 1,397.3 1,442.9 1,467.0 34 Government and government enterprises... 219.6 235.9 253.6 253.9 263.3 267.1 270.5 35 Other 885.7 1,000.0 1,090.0 1.088.4 1,134.0 1,175.7 1,196.4 36 Supplement to wages and salaries 194.3 225.0 252.9 255.0 264.5 279.5 285.1 37 Employer contributions for social insurance 92.1 106.4 115.8 116.0 121.0 131.5 133.2 38 Other labor income 102.2 118.6 137.1 139.1 143.5 148.0 151.8 39 Proprietors' income1 117.1 131.6 130.6 129.7 134.0 132.1 134.1 40 Business and professional1 91.0 100.7 107.2 107.6 111.6 113.2 112.5 41 Farm1 26.1 30.8 23.4 22.1 22.5 18.9 21.7 42 Rental income of persons2 27.4 30.5 31.8 32.0 32.4 32.7 33.3 43 Corporate profits1 199.0 196.8 182.7 177.9 183.3 203.0 190.3 44 Profits before tax3 223.3 255.4 245.5 237.6 249.5 257.0 229.0 45 Inventory valuation adjustment. -24.3 -42.6 -45.7 -41.7 -48.4 -39.2 -24.0 46 Capital consumption adjustment -13.5 -15.9 -17.2 -17.9 -17.8 -14.7 -14.7 47 Net interest 115.8 143.4 179. 185.3 193.3 200. 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. 1980 1981 11997788 11997799 11998800 Q3 Q4 Q1 Q2 Q3' PERSONAL INCOME AND SAVING 1 Total personal income 1,721.8 1,943.8 2,160.2 2,182.1 2,256.2 2,319.8 2,368.5 2,441.7 2 Wage and salary disbursements 1,105.2 1,236.1 1,343.7 1,341.8 1,397.8 1,442.9 1,467.0 1,498.5 3 Commodity-producing industries 389.1 437.9 465.4 460.1 484.0 501.3 508.1 520.2 4 Manufacturing 299.2 333.4 350.7 346.7 364.0 377.4 386.7 393.9 5 Distributive industries 270.5 303.0 328.9 329.2 340.6 351.9 357.8 365.3 6 Service industries 226.1 259.2 295.7 298.7 310.0 322.5 330.5 338.5 7 Government and government enterprises 219.4 236.1 253.6 253.9 263.3 267.1 270.5 274.5 8 Other labor income 102.2 118.6 137.1 139.1 143.5 148.0 151.8 156.3 9 Proprietors' income1 117.2 131.6 130.6 129.7 134.0 132.1 134.1 137.1 10 Business and professional1 91.0 100.8 107.2 107.6 111.6 113.2 112.5 112.4 11 Farm1 26.1 30.8 23.4 22.1 22.5 18.9 21.7 24.7 12 Rental income of persons2 27.4 30.5 31.8 32.0 32.4 32.7 33.3 33.9 13 Dividends 43.1 48.6 54.4 55.1 56.1 58.0 60.2 63.0 14 Personal interest income 173.2 209.6 256.3 261.8 269.7 288.7 300.9 315.7 15 Transfer payments 223.3 249.4 294.2 310.7 313.9 319.6 324.2 342.2 16 Old-age survivors, disability, and health insurance benefits 116.2 131.8 153.8 163.2 165.3 169.8 172.0 188.5 17 LESS: Personal contributions for social insurance 69.6 80.6 87.9 88.1 91.2 102.3 103.1 105.0 18 EQUALS: Personal income 1,721.8 1,943.8 2,160.2 2,182.1 2,256.2 2,319.8 2,368.5 2,441.7 19 LESS: Personal tax and nontax payments 258.8 302.0 338.5 341.5 359.2 372.0 382.9 399.8 20 EQUALS: Disposable personal income 1,462.9 1,641.7 1,821.7 1,840.6 1,897.0 1,947.8 1,985.6 2,042.0 21 LESS: Personal outlays 1,386.6 1,555.5 1,720.4 1,729.2 1,799.4 1,858.9 1,879.0 1,935.1 22 EQUALS: Personal saving 76.3 86.2 101.3 111.4 97.6 88.9 106.6 106.9 MEMO: Per capita (1972 dollars) 23 Gross national product 6,426 6,588 6,503 6,456 6,499 6,619 6,581 6,585 24 Personal consumption expenditures 4,046 4,135 4,108 4,082 4,142 4,191 4,162 4,184 25 Disposable personal income 4,389 4,493 4,473 4,468 4,488 4,511 4,517 4,535 26 Saving rate (percent) 5.2 5.2 5.6 6.1 5.1 4.6 5.4 5.2 GROSS SAVING 27 Gross saving 355.2 412.0 401.9 402.0 406.7 442.6 465.3 469.4 28 Gross private saving 355.4 398.9 432.9 446.5 436.4 451.1 475.3 486.2 29 Personal saving 76.3 86.2 101.3 111.4 97.6 88.9 106.6 106.9 30 Undistributed corporate profits1 57.9 59.1 44.3 42.8 40.4 55.7 52.0 52.8 31 Corporate inventory valuation adjustment -24.3 -42.6 -45.7 -41.7 -48.4 -39.2 -24.0 -25.3 Capital consumption allowances 32 Corporate 136.4 155.4 175.4 178.4 183.2 187.5 194.6 201.1 33 Noncorporate 84.8 98.2 111.8 113.4 115.8 119.0 122.1 125.4 34 Wage accruals less disbursements .0 .0 .0 .5 -.5 .0 0 .0 35 Government surplus, or deficit (-), national income and product accounts -0.2 11.9 -32.1 -45.6 -30.8 -9.7 -11.2 -17.9 36 Federal -29.2 -14.8 -61.2 -74.2 -67.9 -46.6 -47.2 -55.7 37 State and local 29.0 26.7 29.1 28.6 37.1 36.9 36.1 37.8 38 Capital grants received by the United States, net .0 1.1 1.1 1.1 1.1 1.1 1.1 1.1 39 Gross investment 361.6 414.1 401.2 405.0 400.1 446.0 458.3 469.6 40 Gross private domestic 375.3 415.8 395.3 377.1 397.7 437.1 458.6 463.0 41 Net foreign -13.8 -1.7 5.9 27.8 2.3 8.8 -.2 6.5 42 Statistical discrepancy 6.4 2.2 -.7 3.0 -6.6 3.4 -6.9 .2 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 • January 1982 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1981 Item credits or debits 1978 1979 1980 Q3 Q4 Q1 Q2R Q3 p 1 Balance on current account -14,075 1,414 3,723 4,975 1,390 3,263 1,142 2,100 2 Not seasonally adjusted 1,149 3,244 3,546 2,438 3 Merchandise trade balance2 -33,759 -27,346 -25,342 -2,902 -5,570 -4,677 -6,910 -7,042 4 Merchandise exports 142,054 184,473 223,966 56,252 57,149 61,098 60,477 58,037 5 Merchandise imports -175,813 -211,819 -249,308 -59,154 -62,719 -65,775 -67,387 -65,079 6 Military transactions, net 738 -1,947 -2,515 -455 -715 -568 -698 -72 7 Investment income, net3 21,400 33,462 32,762 8,154 8,257 9,053 8,733 9,490 8 Other service transactions, net 2,613 2,839 5,874 1,681 1,762 982 1,535 1,618 9 Remittances, pensions, and other transfers -1,884 -2,057 -2,397 -591 -720 -550 -553 -602 10 U.S. government grants (excluding military) -3,183 -3,536 -4,659 -912 -1,624 -977 -965 -1,292 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -4,644 -3,767 -5,165 -1,427 -1,094 -1,395 -1,485 -1,242 1 1 1 3 2 4 Ch G S a p n o e g ld c e i a i l n d U ra . w S. i n o g f f r ic ig ia h l t s r e ( s S e D rv R e s) a ssets (increase, -) 1, - 2 7 6 4 3 5 9 2 - -1 1 , , - 1 1 6 3 3 6 2 5 -8, - 1 1 55 6 0 -1 - , 2 10 6 9 1 0 -4 1 , , 2 2 7 8 9 5 0 - - 4 1, , 4 52 4 9 1 0 -9 -2 0 3 5 0 -2 - 2 4 5 0 15 Reserve position in International Monetary Fund 4,231 -189 -1,667 -294 -1,240 -707 -780 -647 16 Foreign currencies -4,683 257 -6,472 -554 -4,324 -2,381 -102 17 Change in U.S. private assets abroad (increase, -)3 -57,158 -57,739 -71,456 -16,766 -22,622 -16,473 -19,581 -16,758 18 Bank-reported claims -33,667 -26,213 -46,947 -12,440 -13,139 -11,241 -15,627 -14,808 19 Nonbank-reported claims -3,853 -3,026 -2,653 343 -2,005 -3,192 2,470 n.a. 20 U.S. purchase of foreign securities, net -3,582 -4,552 -3,310 -818 -356 -488 1,479 -517 21 U.S. direct investments abroad, net3 -16,056 -23,948 -18,546 -3,851 -7,122 -1,552 -4,945 -1,433 22 Change in foreign official assets in the United States (increase, +) 33,561 -13,757 15,492 7,686 7,712 5,503 -2,779 -5,847 23 U.S. Treasury securities 23,555 -22,435 9,683 3,769 6,911 7,242 -2,069 -4,632 24 Other U.S. government obligations 666 463 2,187 549 587 454 536 545 25 Other U.S. government liabilities4 2,359 -133 636 80 205 -112 177 -162 26 Other U.S. liabilities reported by U.S. banks 5,551 7,213 -159 1,823 -460 -2,910 -2,070 -2,572 27 Other foreign official assets5 1,4530 1,135 3,145 1,465 469 829 647 974 28 Change in foreign private assets in the United States (increase, +)? 30,187 52,703 34,769 3,965 16,157 1,637 15,667 20,903 29 U.S. bank-reported liabilities 16,141 32,607 10,743 916 7,737 -3,889 7,916 16,720 30 U.S. nonbank-reported liabilities 1,717 2,065 5,109 373 3,228 -820 -293 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 2,178 4,820 2,679 -254 893 1,405 733 -523 32 Foreign purchases of other U.S. securities, net 2,254 1,334 5,384 241 2,240 2,454 3,472 758 33 Foreign direct investments in the United States, net3 7,896 11,877 10,853 2,689 2,059 2,487 3,839 3,948 34 Allocation of SDRs 0 1,139 1,152 0 0 1,093 0 0 35 Discrepancy 11,398 21,140 29,640 2,676 2,736 10,901 7,941 848 36 Owing to seasonal adjustments -3,291 2,139 -340 1,222 -2,592 37 Statistical discrepancy in recorded data before seasonal adjustment 11,398 21.140 29,640 5,967 597 11,241 3,440 MEMO: Changes in official assets 38 U.S. official reserve assets (increase, ~) 732 -1,132 -8,155 -1,109 -4,279 -4,529 -905 -4 39 Foreign official assets in the United States (increase, +) 31,202 -13,624 14,856 7,606 7,507 5,615 -2,956 -5,685 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 4,115 1,024 5,446 2,676 3,028 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 236 305 635 125 211 192 214 120 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 May June July Aug. Sept. Oct. Nov. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 143,682 181,860 220,626 18,869 19,870 19,264 19,050 19,655 19,044 19,118 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 174,759 209,458 244,871 21,310 21,975 19,807 23,528 21,229 23,234 22,522 3 Trade balance -31,075 -27,598 -24,245 -2,441 -2,105 -542 -4,478 -1,574 -4,190 -3,404 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 June July Aug. Sept. Oct. Nov/ Dec? 1 Total1 18,650 18,956 26,756 29,582 28,870 29,265 29,716 30,248 31,002 30,032 2 Gold stock, including Exchange Stabilization Fund1 11,671 11,172 11,160 11,154 11,154 11,154 11,152 11,152 11,152 11.152 3 Special drawing rights2'3 1,558 2,724 2,610 3,689 3,717 3,739 3,896 3,949 4,109 4,095 4 Reserve position in International Monetary Fund2 1,047 1,253 2,852 3,988 4,157 4,341 4,618 4,736 5,009 5,012 5 Foreign currencies4,5 4,374 3,807 10,134 10,751 9,842 10,031 10,050 10,411 10,732 9,774 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 weighted average of exchange rates for the currencies of member countries. 4. Beginning November 1978, valued at current market exchange rates. From July 1974 through December 1980, 16 currencies were used; from January 5. Includes U.S. government securities held under repurchase agreement against 1981, 5 currencies have been used. The U.S. SDR holdings and reserve position receipt of foreign currencies, if any. in the IMF also are valued on this basis beginning July 1974. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • January 1982 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1981 AAsssseett aaccccoouunntt 1199778811 11997799 11998800 Apr. May June July Aug. Sept.' Oct.'' All foreign countries 1 Total, all currencies 306,795 364,409r 401,135' 413,747' 417,187 422,946 433,238 433,242 450,234 444,658 2 Claims on United States 17,340 32,302 28,460 34,519 38,645 35,217' 43,074' 41,533 46,327 41,629 3 Parent bank 12,811 25,929 20,202 23,086 28,012 24,311 30,994 29,782 32,250 26,946 4 Other 4,529 6,373 8,258 11,433 10,633 10,906' 12,080 11,751 14,077 14,683 5 Claims on foreigners 278,135 317,330r 354,960' 360,720' 359,531 368,644' 370,938 372,378 384,449 383,500 6 Other branches of parent bank 70,338 79,662r 77,019r 76,918' 76,224 79,814 82,128 83,171 84,409 83,742 7 Banks 103,111 123,420' 146,448' 149,588' 148,988' 154,682' 154,760' 152,286 159,897 156,745 8 Public borrowers2 23,737 26,097' 28,033' 28,377' 27,806' 27,872' 28,728' 29,270 29,891 30,165 9 Nonbank foreigners 80,949 88,151' 103,460' 105,837' 106,513 106,276' 105,322 107,651 110,252 112,848 10 Other assets 11,320 14,777' 17,715r 18,508' 19,011 19,085' 19,226 19,331 19,458 19,529 11 Total payable in U.S. dollars 224,940 267,713' 291,798' 308,374' 312,683 320,308 330,758 328,784 343,067 336,872 12 Claims on United States 16,382 31,171 27,191 33,306 37,403 33,963' 41,873 40,250 45,073 40,414 13 Parent bank 12,625 25,632 19,896 22,839 27,709 24,041 30,742 29,490 31,991 26,733 14 Other 3,757 5,539 7,295 10,467 9,694 9,922' 11,131 10,760 13,082 13,681 15 Claims on foreigners 203,498 229,120r 255,391' 264,538' 264,263 275,185' 277,354 276,935 286,410 284,662 16 Other branches of parent bank 55,408 61,525 58,541' 59,590 58,711 62,696 64,725 65,477 66,082 65,999 17 Banks 78,686 96,261 117,342' 121,610' 121,858' 128,048' 127,469' 124,504 131,764 127,896 18 Public borrowers2 19,567 21,629 23,491 23,865' 23,273' 23,554' 24,333' 24,410 24,709 25,189 19 Nonbank foreigners 49,837 49,705r 56,017' 59,473' 60,421 60,887' 60,827 62,544 63,855 65,578 20 Other assets 5,060 7,422 9,216' 10,530 11,017 11,160' 11,531 11,599 11,584 11,796 United Kingdom 21 Total, all currencies 106,593 130,873 144,717 144,577 146,640 149,704 148,774 150,161 154,096 153,619 22 Claims on United States 5,370 11,117 7,509 8,518 10,382 9,650' 9,130 9,995 11,167 9,562 23 Parent bank 4,448 9,338 5,275 5,766 7,666 7,098 6,167 7,189 7,842 6,168 24 Other 922 1,779 2,234 2,752 2,716 2,552' 2,963 2,806 3,325 3,394 25 Claims on foreigners 98,137 115,123 131,142 130,062 130,200 134,092' 133,626 134,034 137,056 137,979 26 Other branches of parent bank 27,830 34,291 34,760 34,704 34,834 35,914 37,035 38,035 38,899 38,997 27 Banks 45,013 51,343 58,741 57,934 57,611 60,261 59,639 58,362 59,204 59,219 28 Public borrowers2 4,522 4,919 6,688 6,848 6,720 6,811 6,822 6,665 7,112 7,295 29 Nonbank foreigners 20,772 24,570 30,953 30,576 31,035 31,106r 30,130 30,972 31,841 32,468 30 Other assets 3,086 4,633 6,066 5,997 6,058 5,962 6,018 6,132 5,873 6,078 31 Total payable in U.S. dollars 75,860 94,287 99,699 102,336 104,959 108,854 107,961 109,008 113,014 112,068 32 Claims on United States 5,113 10,746 7,116 8,080 9,932 9,160' 8,628 9,552 10,703 9,064 33 Parent bank 4,386 9,297 5,229 5,715 7,611 7,059 6,110 7,128 7,779 6,110 34 Other 727 1,449 1,887 2,365 2,321 2,101' 2,518 2,424 2,924 2,954 35 Claims on foreigners 69,416 81,294 89,723 91,018 91,632 96,230' 95,832 95,887 98,611 99,065 36 Other branches of parent bank 22,838 28,928 28,268 28,466 28,527 29,725 30,789 31,710 32,648 32,887 37 Banks 31,482 36,760 42,073 42,467 42,786 45,631 44,488 42,957 43,802 43,297 38 Public borrowers2 3,317 3,319 4,911 5,096 4,967 5,123 5,176 5,006 5,281 5,475 39 Nonbank foreigners 11,779 12,287 14,471 14,989 15,352 15,751' 15,379 16,214 16,880 17,406 40 Other assets 1,331 2,247 2,860 3,238 3,395 3,464 3,501 3,569 3,700 3,939 Bahamas and Caymans 41 Total, all currencies 91,735 108,977 123,837 132,145 133,594 135,081 145,290 142,087 147,904 142,687 42 Claims on United States 9,635 19,124 17,751 22,473 24,531 21,812 29,808 27,131 29,853 26,827 43 Parent bank 6,429 15,196 12,631 14,908 17,511 14,477 21,654 19,303 20,372 16,918 44 Other 3,206 3,928 5,120 7,565 7,020 7,335 8,154 7,828 9,481 9,909 45 Claims on foreigners 79,774 86,718 101,926 105,081 104,197 108,477 110,584 109,888 113,091 110,771 46 Other branches of parent bank 12,904 9,689 13,342 13,107 12,235 13,569 13,788 13,909 13,174 13,066 47 Banks 33,677 43,189 54,861 57,405 57,073 59,705 60,748 59,316 62,989 60,220 48 Public borrowers2 11,514 12,905 12,577 12,205 12,169 12,038 12,471 12,610 12,431 12,637 49 Nonbank foreigners 21,679 20,935 21,146 22,364 22,720 23,165 23,577 24,053 24,497 24,848 50 Other assets 2,326 3,135 4,160 4,591 4,866 4,792 4,898 5,068 4,960 5,089 51 Total payable in U.S. dollars 85,417 102,368 117,654 126,429 127,969 129,438 139,514 136,054 142,053 136,854 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

Overseas Branches A57 3.13 Continued 1981 T ' t-'l*. Apr. May June July Aug. Sept.' Oct.? All foreign countries 52 Total, all currencies 306,795 364,409r 401,135' 413,747' 417,187 422,946 433,238 433,242 450,234 444,658 53 To United States 58,012 66,689r 91,079' 105,672' 105,343 109,322 118,093 116,190 124,045 120,156 54 Parent bank 28,654 24,533 ' 39,286' 45,325' 41,039 44,327 43,069 44,010 48,591 46,026 55 Other banks in United States 12,169 13,968 14,473 15,551 16,301 16,136 17,578 15,686 17,866 16,411 56 Nonbanks 17,189 28,188 37,275 44,796 48,003 48,859 57,446 56,494 57,588 57,719 57 To foreigners 238,912 283,510' 295,411' 293,160' 296,462 298,169 299,240 300,081 306,836 304,811 58 Other branches of parent bank .. 67,496 77,640' 75,773' 76,150' 75,815 79,033 81,387 80,991 83,387 82,027 59 Banks 97,711 122,922' 132,116' 129,700' 133,707' 131,854 129,290 125,563 127,582 128,464 60 Official institutions 31,936 35,668' 32,473' 28,050' 27,479 26,316 25,682 28,209 28,927 27,535 61 Nonbank foreigners 41,769 47,280' 55,049' 59,260' 59,461' 60,966 62,881 65,318 66,940 66,785 62 Other liabilities 9,871 14,210r 14,690' 14,915' 15,382 15,455 15,905 16,971 19,353 19,691 63 Total payable in U.S. dollars 230,810 273,857' 303,281' 320,315' 324,479 332,284 343,947 341,596 355,010 349,614 64 To United States 55,811 64,530 88,157' 103,208' 102,971 106,740 115,481 113,526 121,080 117,387 65 Parent bank 27,519 23,403 37,528' 43,830' 39,604 42,822 41,620 42,481 46,766 44,199 66 Other banks in United States 11,915 13,771 14,203 15,381 16,175 15,945 17,391 15,529 17,686 16,260 67 Nonbanks 16,377 27,356 36,426 43,997 47,192 47,973 56,470 55,516 56,628 56,928 68 To foreigners 169,927 201,514' 206,883' 207,510' 211,915 215,931 218,178 217,239 221,120 219,617 69 Other branches of parent bank . 53,396 60,551' 58,172' 59,268' 59,108 62,292 64,884 64,338 66,286 65,150 70 Banks 63,000 80,691 87,497' 86,490 89,875' 89,909 88,554 83,842 84,568 84,507 71 Official institutions 26,404 29,048 24,697 21,453 21,355' 20,853 20,108 22,056 22,938 21,798 72 Nonbank foreigners 27,127 31,224 36,517 40,299 41,577 42,877 44,632 47,003 47,328 48,162 73 Other liabilities 5,072 7,813 8,241' 9,597 9,593 9,613 10,288 10,831 12,810 12,610 United Kingdom 74 Total, all currencies 106,593 130,873 144,717 144,577 146,640 149,704 148,774 150,161 154,096 153,619 75 To United States 9,730 20,986 21,785 25,843 26,688 29,598 30,383 31,408 34,093 32,981 76 Parent bank 1,887 3,104 4,225 4,543 4,376 4,371 4,138 4,189 5,370 3,563 77 Other banks in United States 4,189 7,693 5,716 • 5,928 5,973 6,172 5,864 5,646 6,376 6,029 78 Nonbanks 3,654 10,189 11,844 15,372 16,339 19,055 20,381 21,573 22,347 23,389 79 To foreigners 93,202 104,032 117.438 113,634 114,655 115,099 113,560 113,191 113,912 114,394 80 Other branches of parent bank .. 12,786 12,567 15,384 15,095 14,169 14,996 15,103 15,255 15,177 15,544 81 Banks 39,917 47,620 56,262 53,842 56,209 55,923 54,351 51,532 51,830 53,562 87 Official institutions 20,963 24,202 21,412 18,390 18,508 17,197 16,352 17,866 18,687 17,292 83 Nonbank foreigners 19,536 19,643 24,380 26,307 25,769 26,983 27,754 28,538 28,224 27,996 84 Other liabilities 3,661 5,855 5.494 5,100 5,297 5,007 4,831 5,562 6,091 6,244 85 Total payable in U.S. dollars 77,030 95,449 103,440 107,139 109,209 113,427 113,247 114,191 117,920 117,349 86 To United States 9,328 20,552 21,080 25,333 26,221 28,858 29,606 30,661 33,414 32,425 87 Parent bank 1,836 3,054 4.078 4,448 4,306 4,277 4,054 4,132 5,309 3,505 88 Other banks in United States 4,101 7,651 5.626 5,854 5,919 6,094 5,768 5,594 6,297 5,951 89 Nonbanks 3,391 9,847 11,376 15,031 15,996 18,487 19,784 20,935 21,808 22,969 90 To foreigners 66,216 72,397 79,636 78,668 79,713 81,544 80,400 79,988 80,688 81,242 91 Other branches of parent bank .. 9,635 8,446 10,474 10,282 9,327 10,289 10,566 10,943 10,797 11,121 92 Banks 25,287 29,424 35,388 34,209 35,870 36,701 35,789 32,914 33,010 34,258 93 Official institutions 17,091 20,192 17,024 14,478 14,851 14,000 13,133 14,244 15,514 14,265 94 Nonbank foreigners 14,203 14,335 16,750 19,699 19,665 20,554 20,912 21,887 21,367 21,598 95 Other liabilities 1,486 2,500 2,724 3,138 3,275 3,025 3,241 3,542 3,818 3,682 Bahamas and Caymans % Total, all currencies 91,735 108,977 123,837 132,145 133,594 135,081 145,290 142,087 147,904 142,687 97 To United States 39,431 37,719 59,666 69,478 69,048 69,407 77,197 73,924 77,533 75,991 98 Parent bank 20,482 15,267 28,181 32,925 29,583 32,160 31,034 31,265 33,282 33,387 99 Other banks in United States 6,073 5,204 7,379 8,618 9,279 8,822 10,517 8,938 10,191 9,321 100 Nonbanks 12,876 17,248 24.106 27,935 30,168 28,425 35,646 33,721 34,060 33,283 101 To foreigners 50,447 68,598 61,218 59,424 61,170 62,470 64,491 64,565 66,627 62,795 102 Other branches of parent bank . 16,094 20,875 17,040 17,788 17,950 19,484 20,989 20,315 22,393 20,521 103 Banks 23,104 33,631 29,895 27,213 28,846 28,326 28,056 27,538 27,983 25,396 104 Official institutions 4,208 4,866 4,361 4,079 3,666 3,685 3,934 4,605 4,028 4,078 105 Nonbank foreigners 7,041 9,226 9,922 10,344 10,708 10,975 11,512 12,107 12,223 12,800 106 Other liabilities 1,857 2,660 2,953 3,243 3,376 3,204 3,602 3,598 3,744 3,901 107 Total payable in U.S. dollars 87,014 103,460 119,657 128,235 129,811 131,120 141,241 137,754 143,507 138,103 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • January 1982 3.14 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1981 IItteemm 11997788 11997799 11998800 May June July Aug. Sept. Oct.P Nov.? 1 Total1 162,775 149,697 164,576 165,414 167,069 166,986 162,391 161,586 159,796 164,418 By type 2 Liabilities reported by banks in the United States2 . 23,326 30,540 30,381 23,575 25,234 25,937 22,934 22,865 20,928 23,189 3 U.S. Treasury bills and certificates3 67,671 47,666 56,243 57,858 57,719 55,659 52,924 50,179 4488,,886677 4499,,664444 U.S. Treasury bonds and notes 4 Marketable 35,894 37,590 41,455 45,625 46,605 47,402 48,934 50,311 51,943 54,066 5 Nonmarketable4 20,970 17,387 14,654 13,202 12,802 12,402 12,402 12,402 12,191 11,791 6 U.S. securities other than U.S. Treasury securities5 14,914 16,514 21,843 24,062 24,309 25,186 25,197 25,829 25,867 25,728 By area 7 Western Europe1 93,089 85,633 81,592 71,467 71,130 70,557 65,960 64,409 61,086 62,971 8 Canada 2,486 1,898 1,562 1,365 1,248 664 1,603 1,366 1,073 2,248 9 Latin America and Caribbean 5,046 6,291 5,688 5,526 6,103 5,584 5,968 5,429 55,,008888 5,008 10 59,004 52,978 70,782 81,014 83,124 85,845 84,641 87,331 8899,,118888 91,314 11 Africa 2,408 2,412 4,123 3,927 3,190 2,645 2,840 2,090 2,149 1,792 12 Other countries6 742 485 829 2,116 2,275 1,691 1,379 961 1,212 1,085 1. Includes the Bank for International Settlements. 5. Debt securities of U.S. government corporations and federally sponsored 2. Principally demand deposits, time deposits, bankers acceptances, commercial agencies, and U.S. corporate stocks and bonds. paper, negotiable time certificates of deposit, and borrowings under repurchase 6. Includes countries in Oceania and Eastern Europe. agreements. 3. Includes nonmarketable certificates of indebtedness (including those payable NOTE. Based on Treasury Department data and on data reported to the Treasury in foreign currencies through 1974) and Treasury bills issued to official institutions Department by banks (including Federal Reserve Banks) and securities dealers in of foreign countries. the United States. 4. Excludes notes issued to foreign official nonreserve agencies. Includes bonds and notes payable in foreign currencies. 3.15 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign Currencies Millions of dollars, end of period 1980 1981 IItteemm 11997777 11997788 11997799 Dec. Mar. June Sept. 1 Banks' own liabilities 925 2,406 1,918 3,748 3,298 3,031 2,870 2 Banks' own claims1 2,356 3,671 2,419 4,206 4,257 3,673 4,132 3 Deposits 941 1,795 994 2,507 1,779 2,052 2,423 4 Other claims 1,415 1,876 1,425 1,699 2,478 1,621 1,709 s 335588 558800 996622 444444 334477 224477 1. Includes claims of banks' domestic customers through March 1978. NOTE. Data on claims exclude foreign currencies held by U.S. monetary au- 2. Assets owned by customers of the reporting bank located in the United States thorities. that represent claims on foreigners held by reporting banks for the accounts of their domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data 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 May June July Aug. Sept. Oct. Nov.? 1 All foreigners 166,842 187,521 205,295 213,487 208,799 213,677 208,044 216,113' 197,963 206,908 2 Banks' own liabilities 78,661 117,196 124,789 132,167 127,947 131,903 130,980 142,213' 123,507 131,206 3 Demand deposits 19,218 23,303 23,462 22,193 23,174 21,401 22,072 23,592' 19,061 21,118 4 Time deposits1 12,427 13,623 15,076 16,059 16,641 16,457 17,250 17,313' 17,465 18,135 5 Other2 9,705 16,453 17,581 12,359 14,090 13,327 11,242 13,608' 11,225 14,051 6 Own foreign offices3 37,311 63,817 68,670 81,556 74,042 80,717 80,416 87,699r 75,757 77,901 7 Banks' custody liabilities4 88,181 70,325 80,506 81,320 80,852 81,774 77,065 73,900 74,456 75,703 8 U.S. Treasury bills and certificates5 68,202 48,573 57,595 59,597 59,745 57,550 54,846 52,368 51,281 52,004 9 Other negotiable and readily transferable instruments6 17,472 19,396 20,079 17,392 17,023 17,865 17,999 17,295 18,257 18,256 10 Other 2,507 2,356 2,832 4,331 4,084 6,359 4,220 4,238 4,919 5,442 11 Nonmonetary international and regional organizations7 2,607 2,356 2,342 1,813 1,777 1,798 1,650 1,826 1,981 2,317 12 Banks' own liabilities 906 714 442 509 357 363 436 398 303 555 13 Demand deposits 330 260 146 147 224 222 233 249 185 388 14 Time deposits1 84 151 85 80 75 75 59 60 58 74 15 Other2 492 303 211 281 58 65 145 89 60 93 16 Banks' custody liabilities4 1,701 1,643 1,900 1,304 1,420 1,435 1,214 1,428 1,678 1,762 17 U.S. Treasury bills and certificates 201 102 254 213 289 247 84 96 184 142 18 Other negotiable and readily transferable instruments6 1,499 1,538 1,646 1,091 1,132 1,188 1,130 1,332 1,494 1,621 19 Other 1 2 0 0 0 0 0 0 0 0 20 Official institutions8 90,742 78,206 86,624 81,434 82,953 81,596 75,858 73,044 69,796 72,833 21 Banks' own liabilities 12,165 18,292 17,826 13,478 15,815 14,460 13,482 13,951 11,869 13,978 22 Demand deposits 3,390 4,671 3,771 3,444 3,975 3,134 3,714 2,697 2,668 2,459 23 Time deposits1 2,560 3,050 3,612 2,654 2,563 2,090 2,021 1,981 1,692 1,854 24 Other2 6,215 10,571 10,443 7,381 9,277 9,236 7,747 9,273 7,509 9,665 25 Banks' custody liabilities4 78,577 59,914 68,798 67,955 67,138 67,136 62,376 59,093 57,927 58,856 26 U.S. Treasury bills and certificates5 6677,,441155 47,666 56,243 5577,,885588 5577,,771199 55,659 52,921 5500,,117799 4488,,886677 4499,,664444 27 Other negotiable and readily transferable instruments6 10,992 12,196 12,501 10,014 9,346 9,396 9,400 8,659 9,013 9,161 28 Other 170 52 54 83 73 2,081 55 255 46 51 29 Banks9 57,423 88,316 96,415 108,542 101,464 107,806 107,448 117,630r 102,232 107,273 30 Banks' own liabilities 52,626 83,299 90,456 100,442 93,250 9988,,888866 98,350 108,618' 92,032 96,442 31 Unaffiliated foreign banks 15,315 19,482 21,786 18,886 19,208 1188,,116688 17,933 20,919r 16,275 18,541 32 Demand deposits 11,257 13,285 14,188 13,394 13,628 12,929 13,255 15,199 11,346 12,910 33 Time deposits1 1,429 1,667 1,703 1,685 1,728 1,573 1,686 1,880 1,631 1,955 34 Other2 2,629 4,530 5,895 3,808 3,852 3,666 2,993 3,840' 3,298 3,676 35 Own foreign offices3 37,311 63,817 68,670 81,556 74,042 80,717 80,416 87,699' 75,757 77,901 36 Banks' custody liabilities4 4,797 5,017 5,959 8,100 8,214 8,921 9,099 9,012 30 10,200 10,831 37 U.S. Treasury bills and certificates 300 422 623 945 11,,117700 1,069 1,217 11,,443399 1,574 1,584 38 Other negotiable and readily transferable instruments6 2,425 2,415 2,748 3,053 3,178 3,732 4,019 3,889 4,091 4,169 39 Other 2,072 2,179 2,588 4,102 3,866 4,119 3,862 3,684 4,535 5,078 40 Other foreigners 16,070 18,642 19,914 21,698 22,605 22,477 23,088 23,613' 23,955 24,485 41 Banks' own liabilities 12,964 14,891 16,065 17,737 18,525 18,195 18,712 19,246' 19,303 20,231 42 Demand deposits 4,242 5,087 5,356 5,209 5,346 5,116 4,871 5,447' 4,862 5,361 43 Time deposits 8,353 8,755 9,676 10,995 12,275 12,719 13,483 13,393' 14,084 14,252 44 Other2 368 1,048 1,033 889 903 360 358 406' 358 618 45 Banks' custody liabilities4 3,106 3,751 3,849 3,961 4,080 4,283 4,376 4,367 4,652 4,253 46 U.S. Treasury bills and certificates 285 382 474 581 568 575 624 654 656 634 47 Other negotiable and readily transferable instruments6 2,557 3,247 3,185 3,235 3,367 3,548 3,450 3,414 3,659 3,306 48 Other 264 123 190 145 144 159 302 300 337 313 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 11,007 10,984 10,745 9,653 10,176 10,091 9,961 9,459' 9,424 9,975 1. Excludes negotiable time certificates of deposit, which are included in "Other 5. Includes nonmarketable certificates of indebtedness and Treasury bills issued negotiable and readily transferable instruments." Data for time deposits before to official institutions of foreign countries. April 1978 represent short-term only. 6. Principally bankers acceptances, commercial paper, and negotiable time cer- 2. Includes borrowing under repurchase agreements. tificates of deposit. 3. U.S. banks: includes amounts due to own foreign branches and foreign sub- 7. Principally the International Bank for Reconstruction and Development, and sidiaries consolidated in "Consolidated Report of Condition" filed with bank reg- the Inter-American and Asian Development Banks. ulatory agencies. Agencies, branches, and majority-owned subsidiaries of foreign 8. Foreign central banks and foreign central governments and the Bank for banks: principally amounts due to head office or parent foreign bank, and foreign International Settlements. branches, agencies or wholly owned subsidiaries of head office or parent foreign 9. Excludes central banks, which are included in "Official institutions." bank. 4. Financial claims on residents of the United States, other than long-term securities, held by or through reporting banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • January 1982 3.16 Continued 1981 AArreeaa aanndd ccoouunnttrryy 11997788 11997799 11998800 May June July Aug. Sept. Oct. NOV.P 1 Total 166,842 187,521 205,295 213,487 208,799 213,677 208,044 216,113' 197,963 206,908 2 Foreign countries 164,235 185,164 202,953 211,674 207,022 211,880 206,394 214,287' 195,983 204,591 3 Europe 85,172 90,952 90,897 87,209 86,789 85,418 81,547 85,087' 77,665 82,275 4 Austria 513 413 523 493 540 610 612 590 583 596 5 Belgium-Luxembourg 2.550 2,375 4,019 5,469 5,056 4,759 4,240 4,852 3,644 3,989 b Denmark 1,946 1,092 497 526 415 430 239 163 232 306 7 Finland 346 398 455 280 305 294 220 198 187 196 8 France 9,214 10,433 12,125 11,367 11,515 11,058 9,235 7,637 7,125 7,385 9 Germany 17,283 12,935 9,973 9,472 9,631 9,072 7,301 8,410 6,555 7,211 10 Greece 826 635 670 513 507 533 492 578 496 428 11 Italy 7,739 7,782 7,572 3,014 4,620 6,134 6,374 6,264' 5,687 5,656 12 Netherlands 2,402 2,337 2,441 2,176 2,133 1,792 1,751 2,240 2,173 2,351 13 Norway 1,271 1,267 1,344 1,648 1,743 1,289 1.228 1,008 1,449 1,642 14 Portugal 330 557 374 336 454 448 460 486 424 358 lb Spain 870 1,259 1,500 1,678 1,199 1,329 1,409 1,189 975 954 16 Sweden 3.121 2,005 1,737 2,501 2,180 1,864 1,667 2,102 1,609 1,508 17 Switzerland 18,225 17,954 16,689 15,810 15,844 16,320 16,426 16,983 17,116 18,949 18 Turkey 157 120 242 182 194 356 208 234 252 197 19 United Kingdom 14,272 24,700 22,680 25,485 24,428 23,220 24,194 26,335' 23,985 24,258 20 Yugoslavia 254 266 681 270 312 408 343 366 265 380 21 Other Western Europe1 3,440 4,070 6,939 5,616 5,323 5,177 4,804 5,010 4,472 5,354 22 U.S.S.R 82 52 68 85 41 46 34 28 42 72 23 Other Eastern Europe2 330 302 370 288 351 280 310 414 396 486 24 Canada 6,969 7.379 10,031 11,222 10,208 9,249 9,871 10,119 8,934 10,091 25 Latin America and Caribbean 31,638 49,686 53,170 60,096 56,156 63,979 63.791 66,363' 58,582 59,923 26 Argentina 1,484 1,582 2,132 1,800 1,991 1,980 2,043 1,979 1,929 2,012 27 Bahamas 6,752 15,255 16,381 20,154 17,760 24.476 24,209 2255,,116688 20,206 21,584 28 Bermuda 428 430 670 802 698 646 700 880066 721 624 29 Brazil 1.125 1,005 1,216 1,347 1,412 1,145 1,282 1,301' 1,265 1,282 30 British West Indies 5,974 11,138 12,766 14,892 12,834 14,024 13,239 14,456 10,472 9,489 31 Chile 398 468 460 526 508 566 538 491 538 504 32 Colombia 1,756 2,617 3,077 2,828 2,827 2,784 2,708 22,,552277 2,759 2,775 33 Cuba 13 13 6 7 7 7 7 88 6 7 34 Ecuador 322 425 371 391 463 392 355 394 403 516 35 Guatemala3 416 414 367 413 399 412 399 476 419 444 36 Jamaica3 52 76 97 132 80 122 290 92 147 96 37 Mexico 3,467 4,185 4,547 4,948 5,351 5,532 6,352 6,021' 5,717 6,031 38 Netherlands Antilles 308 499 413 438 495 487 692 697' 2,771 2,896 39 Panama 2.967 4,483 4,718 4,847 4,615 5,004 4,619 4,964' 4,599 4,904 40 Peru 363 383 403 334 450 363 398 380' 369 473 41 Uruguay 231 202 254 334 322 243 266 259 249 266 42 Venezuela 3,821 4,192 3,170 3,924 3,548 3,671 3,621 3,982 4,044 3,971 43 Other Latin America and Caribbean 1,760 2,318 2,123 1,979 2,398 2,125 2,073 2,362 1,969 2,049 44 Asia 36,492 33,005 42,420 46,156 47,279 48,073 4466,,119922 4488,,772222'' 4466,,884444 4488,,663311 China 45 Mainland 67 49 49 54 102 84 74 76 85 200 46 Taiwan 502 1,393 1,662 1,781 1,936 2,005 2,177 2,188 2,182 2,140 47 Hong Kong 1,256 1,672 2,548 3,001 3,151 3,446 3,956 4,062' 4,158 4,090 48 India 790 527 416 458 408 394 455 491 433 511 49 Indonesia 449 504 730 707 582 1,309 732 809 1,269 985 50 Israel 688 707 883 404 478 387 482 412' 418 475 51 Japan 21,927 8,907 16,281 19,803 19,563 19,475 19,757 20,747' 20,204 19,987 52 Korea 795 993 1,528 1,397 1,330 1,252 1,319 1,434 1,291 1,322 53 Philippines 644 795 919 802 1,049 992 868 832 691 736 54 Thailand 427 277 464 338 422 436 371 392 274 409 55 Middle-East oil-exporting countries4 7,534 15,300 14,453 14,728 15,129 14,909 12,396 13,293' 12,196 13,603 56 Other Asia 1,414 1,879 2,487 2,684 3,129 3,385 3,607 3,985 3,643 4,172 57 Africa 2,886 3,239 5,187 4,513 3,907 3,173 3,201 2,561 2,535 2,381 58 Egypt 404 475 485 308 289 293 355 433 343 328 59 Morocco 32 33 33 54 41 77 59 43 28 37 60 South Africa 168 184 288 360 253 257 296 244 282 202 61 Zaire 43 110 57 24 181 84 41 76 44 56 62 Oil-exporting countries5 1,525 1,635 3,540 3,004 2,388 1,715 1,703 1,040 1,165 830 63 Other Africa 715 804 783 764 755 747 746 725 672 929 64 Other countries 1,076 904 1,247 2,477 2,683 1,987 1,792 1.434' 1,423 1,291 65 Australia 838 684 950 2,276 2,398 1,770 1,568 1,174' 1,212 1,065 66 All other 239 220 297 201 285 217 224 260 211 226 67 Nonmonetary international and regional organizations 2,607 2,356 2,342 1,813 1,777 1,798 1,650 1,826 1,981 2,317 68 International 1,485 1,238 1,156 781 747 699 524 631 945 1,128 69 Latin American regional 808 806 890 729 722 765 747 750 724 797 70 Other regional6 314 313 296 303 307 333 379 445 312 391 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. 3. Included in "Other Latin America and Caribbean" through March 1978. 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). 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 May June July Aug. Sept. Oct. Nov.P 1 Total 115,545 133,943 172,592 187,139 197,312 196,860 198,878 210,086' 196,428 207,909 2 Foreign countries 115,488 133,906 172,514 187,092 197,264 196,800 198,827 210,031r 196,385 207,869 3 Europe 24,201 28,388 32,108 34,463 37,338 35,198 35,065 40,876' 34,256 39,253 4 Austria 140 284 236 149 166 157 185 436 138 179 5 Belgium-Luxembourg 1,200 1,339 1,621 2,012 2,796 2,087 2,373 2,625 1,755 2,023 6 Denmark 254 147 127 162 125 132 166 158r 186 207 7 Finland 305 202 460 299 365 343 352 346' 397 516 8 France 3,735 3,322 2,958 3,164 3,209 2,861 3,074 3,351' 2,563 3,252 9 Germany 845 1,179 948 1,140 1,099 1,259 1,144 1,267' 841 969 10 Greece 164 154 256 242 249 292 214 287' 235 255 11 Italy 1,523 1,631 3,364 2,981 3,879 3,923 3,997 4,016' 4,322 4,559 12 Netherlands 677 514 575 604 627 497 581 569' 564 567 13 Norway 299 276 227 173 172 167 249 300' 230 281 14 Portugal 171 330 331 263 353 389 350 328 353 390 15 Spain 1,120 1,051 993 1,720 1,769 1,726 1,801 1,711 1,627 1,693 16 Sweden 537 542 783 996 794 730 672 930 871 1,333 17 Switzerland 1,283 1,165 1,446 1,708 1,690 1,871 1,708 1,948' 1,471 1,961 18 Turkey 300 149 145 172 147 137 159 144 153 144 19 United Kingdom 10,147 13,795 14,917 15,835 1166,,667755 15,454 1144,,883322 19,380' 15,638 17,855 20 Yugoslavia 363 611 853 904 998888 992 994488 932' 954 1,016 21 Other Western Europe1 122 175 179 147 182 160 200 185 148 197 22 U.S.S.R 360 268 281 254 302 245 252 232' 203 248 23 Other Eastern Europe2 657 1,254 1,410 1,539 1,752 1,776 1,809 1,733' 1,608 1,606 24 Canada 5,152 4,143 4,810 6,068 7,024 7,661 6,353 7,962' 7,342 6,922 25 Latin America and Caribbean 57,565 67,993 92,992 99,964 103,375 105,302 108,706 111,561' 107,799 112,865 26 Argentina 2,281 4,389 5,689 5,659 5,822 5,742 5,702 5,771' 5,885 6,044 27 Bahamas 21,555 18,918 29,419 33,285 34,753 35,552 36,684 38,023' 36,626 39,386 28 Bermuda 184 496 218 481 404 411 340 490' 335 255 29 Brazil 6,251 7,713 10,496 9,927 10,014 9,781 10,214 9,861' 10,374 10,823 30 British West Indies 9,694 9,818 15,663 17,312 18,313 18,001 17,846 19,006' 17,086 17,745 31 Chile 970 1,441 1,951 2,019 2,074 2,203 2,321 2,514' 2,567 2,643 32 Colombia 1,012 1,614 1,752 1,580 1,533 1,480 1,429 1,487 1,529 11,,660011 33 Cuba 0 4 3 3 3 7 14 3' 4 66 34 Ecuador 705 1,025 1,190 1,239 1,285 1,307 1,318 1,298' 1,282 1,328 35 Guatemala3 94 134 137 104 104 95 115 119 126 123 36 Jamaica3 40 47 36 35 38 39 40 68 39 45 37 Mexico 5,479 9,099 12,595 13,351 14,066 15,560 17,391 1177,,224455'' 17,148 18,498 38 Netherlands Antilles 273 248 821 756 874 933 894 886699'' 928 946 39 Panama 3,098 6,041 4,974 6,054 66,,221100 6,029 6,167 6,667' 5,791 5,645 40 Peru 918 652 890 871 881188 803 796 788' 795 705 41 Uruguay 52 105 137 100 94 102 107 142 166 148 42 Venezuela 3,474 4,657 5,438 5,438 5,295 5,436 5,529 5,325' 5,272 5,129 43 Other Latin America and Caribbean 1,485 1,593 1,583 1,751 1,675 1,821 1,800 1,885 1,846 1,794 44 Asia 2255,,336622 3300,,773300 3399,,007788 4433,,002200 4466,,002277 4444,,999999 4444,,993344 4455,,556644'' 4433,,113344 4444,,991122 China 45 Mainland 4 35 195 204 205 188 186 153 148 210 46 Taiwan 1,499 1,821 2,469 2,414 2,471 2,380 2,543 2,476 2,359 2,262 47 Hong Kong 1,479 1,804 2,247 2,898 3,328 3,208 3,347 3,716 3,775 3,921 48 India 54 92 142 170 132 106 135 144 176 179 49 Indonesia 143 131 245 268 257 271 254 363 267 329 50 Israel 888 990 1,172 1,186 1,309 1,178 1,108 1,086 1,200 1,325 51 Japan 12,646 16,911 21,361 24,195 25,995 25,954 25,352 25,300' 22,746 23,785 52 Korea 2,282 3,793 5,697 6,023 6,678 6,426 6,479 6,486 6,555 6,671 53 Philippines 680 737 989 1,024 1,192 1,194 1,402 1,530 1,448 1,621 54 Thailand 758 933 876 698 661 546 527 549' 559 546 55 Middle East oil-exporting countries4 3,125 1,548 1,432 1,474 1,617 1,288 1,473 1,394 1,381 1,569 56 Other Asia 1,804 1,934 2,252 2,465 2,181 2,261 2,129 2,367 2,520 2,495 57 Africa 2,221 1,797 2,377 2,536 2,422 2,518 2,715 2,957' 2,795 2,803 58 Egypt 107 114 151 126 155 128 148 145 147 137 59 Morocco 82 103 223 87 71 88 204 273 269 243 60 South Africa 860 445 370 668 658 688 787 917 852 904 61 Zaire 164 144 94 98 98 100 87 102 98 100 62 Oil-exporting countries5 452 391 805 805 672 726 713 689 534 531 63 Other 556 600 734 752 769 789 777 831' 896 888 64 Other countries 988 855 1,150 1,040 1,078 1,121 1,054 1,110' 1,059 1,114 65 Australia 877 673 859 898 939 988 952 959' 962 989 66 Allother 111 182 290 142 139 133 102 152 97 125 67 Nonmonetary international and regional organizations6 56 36 78 47 48 60 51 55 43 40 1. Includes the Bank for International Settlements. Beginning April 1978, also 5. Comprises Algeria, Gabon, Libya, and Nigeria. includes Eastern European countries not listed in line 23. 6. Excludes the Bank for International Settlements, which is included in "Other 2. Beginning April 1978 comprises Bulgaria, Czechoslovakia, the German Dem- Western Europe." ocratic Republic, Hungary, Poland, and Romania. NOTE. Data for period prior to April 1978 include claims of banks' domestic 3. Included in "Other Latin America and Caribbean" through March 1978. customers on foreigners. 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (Trucial States). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • January 1982 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 May June July Aug. Sept. Oct. Nov.P 1 Total 111111122222226666666,,,,,,,777777788888887777777 111111155555554444444,,,,,,,000000033333330000000 111111199999998888888,,,,,,,666666699999998888888 222222233333331111111,,,,,,,000000077777776666666 222222244444445555555,,,,,,,666666644444442222222rrrrrrr 2 Banks' own claims on foreigners 111111111111115555555,,,,,,,555555544444445555555 111111133333333333333,,,,,,,999999944444443333333 111111177777772222222,,,,,,,555555599999992222222 187,139 111111199999997777777,,,,,,,333333311111112222222 196,860 198,878 222222211111110000000,,,,,,,000000088888886666666rrrrrrr 196,428 207,909 3 Foreign public borrowers 11111110000000,,,,,,,333333344444446666666 11111115555555,,,,,,,999999933333337777777 22222220000000.......888888888888882222222 21,541 22222222222222,,,,,,,888888822222225555555 24,020 24,414 22222225555555,,,,,,,000000022222221111111rrrrrrr 25,435 26,313 4 Own foreign offices1 44444441111111,,,,,,,666666600000005555555 44444447777777,,,,,,,444444422222228888888 66666665555555,,,,,,,000000088888884444444 75,441 88888880000000,,,,,,,222222222222228888888 80,673 80,373 88888888888888,,,,,,,222222211111114444444''''''' 78,855 84,835 5 Unaffiliated foreign banks 44444440000000,,,,,,,444444488888883333333 44444440000000,,,,,,,999999922222227777777 55555550000000,,,,,,,111111166666668888888 52,236 55555555555555,,,,,,,222222211111112222222 54,204 55,364 55555558888888,,,,,,,444444466666669999999''''''' 54,749 57,605 6 Deposits 5555555,,,,,,,444444422222228888888 6666666,,,,,,,222222277777774444444 8888888,,,,,,,222222255555554444444 10,743 11111111111111,,,,,,,333333344444442222222 11,278 11,678 11111112222222,,,,,,,666666688888885555555''''''' 12,273 12,783 7 Other 33333335555555,,,,,,,000000055555554444444 33333334444444,,,,,,,666666655555554444444 44444441111111,,,,,,,999999911111114444444 41,493 44444443333333,,,,,,,888888877777770000000 42,926 43,686 44444445555555,,,,,,,777777788888884444444''''''' 42,477 44,822 8 All other foreigners 22222223333333,,,,,,,111111111111111111111 22222229999999,,,,,,,666666655555550000000 33333336666666,,,,,,,444444455555559999999 37,921 33333339999999,,,,,,,000000044444447777777 37,963 38,727 33333338888888,,,,,,,333333388888882222222''''''' 37,390 39,157 11111111111111,,,,,,,222222244444443333333 22222220000000,,,,,,,000000088888888888888 22222226666666,,,,,,,111111100000006666666 33333333333333,,,,,,,777777766666664444444 33333335555555,,,,,,,555555555555556666666 444444488888880000000 999999955555555555555 888888888888885555555 777777744444443333333 999999999999992222222 1111 NNeeggoottiiaabbllee aanndd rreeaaddiillyy ttrraannssffeerraabbllee iinnssttrruummeennttss33...... 5555555,,,,,,,333333399999996666666 11111113333333,,,,,,,111111100000000000000 11111115555555,,,,,,,555555577777774444444 22222223333333,,,,,,,555555511111114444444 22222225555555,,,,,,,111111199999991111111 5555555,,,,,,,333333366666666666666 6666666,,,,,,,000000033333332222222 9999999,,,,,,,666666644444448888888 9999999,,,,,,,555555500000007777777 9999999,,,,,,,333333377777773333333 11111115555555,,,,,,,000000033333330000000 11111118888888,,,,,,,000000022222221111111 22222222222222,,,,,,,777777711111114444444 22222227777777,,,,,,,444444455555557777777 22222227777777,,,,,,,666666622222228888888 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 13,558 22,042 24,100 34,883 33,102 37,354 34,175 36,038 39,519 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. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the account of their NOTE. Beginning April 1978, data for banks' own claims are given on a monthly domestic customers. basis, but the data for claims of banks' own domestic customers are available on 3. Principally negotiable time certificates of deposit and bankers acceptances. 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. June Sept 1 Total 73,635 86,181 99,022 106,857 107,276 116,251 122,050 Bv borrower 2 Maturity of 1 year or less1 58,345 65,152 76,231 82,665 83,471 90,819 94,603 3 Foreign public borrowers 4,633 7,233 8,935 10,036 10,734 11,619 12,970 4 All other foreigners 53,712 57,919 67,296 72,628 72,737 79,200 81,633 5 Maturity of over 1 year1 15,289 21,030 22,791 24,193 23,805 25,431 27,447 6 Foreign public borrowers 5,395 8,371 9,722 10,152 10,250 11,012 12,296 7 All other foreigners 9,894 12,659 13,069 14,041 13,555 14,419 15,151 Bv area Maturity of 1 year or less1 8 Europe 15,169 15,235 16,940 18,762 18,681 20,718 22,749 9 Canada 2,670 1,777 2,166 2,723 2,743 3,196 3,799 10 Latin America and Caribbean 20,895 24,928 28,097 32,034 31,329 32,911 35,509 11 17,545 21,641 26,876 26,748 28,363 31,448 29,448 12 Africa 1,496 1,077 1,401 1,757 1,624 1,770 2,324 13 All other2 569 493 751 640 730 776 774 Maturity of over 1 year1 14 Europe 33,,114422 4,160 4,705 5,118 5,585 6,277 6,403 15 Canada 1,426 1,317 1,188 1,448 1,180 1,316 1,347 16 Latin America and Caribbean 8,464 12,814 14,187 15,075 14,841 15,448 17,423 17 1,407 1,911 2,014 1,865 1,530 1,680 1,571 18 Africa 637 655 567 507 531 551 548 19 All other2 214 173 130 179 138 159 155 1. Remaining time to maturity. 2. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A63 3.20 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1 Billions of dollars, end of period 1979 1980 1981 AArreeaa oorr ccoouunnttrryy 11997777 1199778822 Sept. Dec. Mar. June Sept. Dec. Mar. June Sept.? 1 Total 240.0 266.2 294.0 303.8 308.5 328.7' 339.1r 351.9' 370.9 382.2 398.2 2 G-10 countries and Switzerland 116.4 124.7 135.7 138.4 141.2 154.2 158.8 162.1 168.4 168.3 171.8 3 Belgium-Luxembourg 8.4 9.0 10.7 11.1 10.8 13.1 13.6 13.0 13.5 14.2 14.0 4 France 11.0 12.2 12.0 11.7 12.0 14.1' 13.9 14.1 14.5 14.7 16.0 5 Germany 9.6 11.3 12.8 12.2 11.4 12.7 12.9 12.1 13.2 12.1 12.7 6 6.5 6.7 6.1 6.4 6.2 6.9 7.2 8.2 7.7 8.4 8.6 7 Netherlands 3.5 4.4 4.7 4.8 4.3 4.5 4.4 4.4 4.6 4.1 3.7 8 Sweden 1.9 2.1 2.3 2.4 2.4 2.7 2.8 2.9 3.2 3.1 3.4 9 Switzerland 3.6 5.3 5.0 4.7 4.3 3.3 3.4 5.0 5.1 5.2 5.1 10 United Kingdom 46.5 47.3 53.7 56.4 57.6 64.4' 66.7' 67.4 68.2 66.7 68.6 11 Canada 6.4 6.0 6.0 6.3 6.9 7.2 7.7 8.4 8.8 10.8 11.5 12 Japan 18.8 20.6 22.3 22.4 25.4 25.5 26.1 26.5 29.6 28.9 28.2 13 Other developed countries 18.6 19.4 19.7 19.9 18.8 20.3 20.6 21.7 23.5 24.8 26.3 14 Austria 1.3 1.7 2.0 2.0 1.7 1.8 1.8 1.9 1.8 2.1 2.1 IS Denmark 1.6 2.0 2.0 2.2 2.1 2.2 2.2 2.3 2.4 2.3 2.5 16 Finland 1.2 1.2 1.2 1.2 1.1 1.3 1.2 1.4 1.4 1.3 1.4 17 Greece 2.2 2.3 2.3 2.4 2.4 2.5 2.6 2.8 2.7 3.0 2.9 18 Norway 1.9 2.1 2.3 2.3 2.4 2.4 2.4 2.6 2.8 2.8 3.0 19 Portugal .6 .6 .7 .7 .6 .6 .7 .6 .6 .8 1.0 20 Spain 3.6 3.5 3.3 3.5 3.5 3.9 4.2 4.4 5.6 5.7 5.8 21 Turkey 1.5 1.5 1.4 1.4 1.4 1.4 1.3 1.5 1.5 1.4 1.5 22 Other Western Europe .9 1.3 1.5 1.4 1.4 1.6 1.7 1.7 1.8 1.8 1.9 23 South Africa 2.4 2.0 1.7 1.3 1.1 1.5 1.2 1.1 1.5 1.9 2.5 24 Australia 1.4 1.4 1.3 1.3 1.2 1.2 1.2 1.3 1-4 1.7 1.9 25 OPEC countries3 17.6 22.7 23.4 22.9 21.8 20.9 21.4' 22.7 21.7 22.2 23.4 76 Ecuador 1.1 1.6 1.6 1.7 1.8 1.8 1.9 2.1 2.0 2.0 2.1 7.7 Venezuela 5.5 7.2 7.9 8.7 7.9 7.9 8.5 9.1 8.3 8.7 9.2 28 Indonesia 2.2 2.0 1.9 1.9 1.9 1.9 1.9 1.8 2.1 2.1 2.5 29 Middle East countries 6.9 9.5 9.2 8.0 7.8 6.9 6.7' 6.9 6.7 6.8 7.1 30 African countries 1.9 2.5 2.8 2.6 2.5 2.5 2.4 2.8 2.6 2.6 2.6 31 Non-OPEC developing countries 48.7 52.6 58.9 62.9 63.7 67.6' 72.8 77.2 81.8 84.6 89.8 Latin America 37 Argentina 2.9 3.0 4.1 5.0 5.5 5.6 7.6 7.9 9.4 8.5 9.2 33 Brazil 12.7 14.9 15.1 15.2 15.0 15.3 15.8 16.2 16.8 17.3 17.6 34 Chile .9 1.6 2.2 2.5 2.5 2.7 3.2 3.7 4.0 4.7 5.5 35 Colombia 1.3 1.4 1.7 2.2 2.1 2.2 2.4 2.6 2.4 2.5 2.5 36 Mexico 11.9 10.8 11.4 12.0 12.1 13.6 14.4 15.9 17.0 18.2 20.0 37 1.9 1.7 1.4 1.5 1.3 1.4 1.5 1.8 1.8 1.7 1.8 38 Other Latin America 2.6 3.6 3.6 3.7 3.6 3.6 3.9 3.9 4.7 3.8 4.2 Asia China 39 Mainland .0 .0 .1 .1 .1 .1 .1 .2 .2 .2 .2 40 Taiwan 3.1 2.9 3.5 3.4 3.6 3.8 4.1 4.2 4.4 4.6 5.1 41 India .3 .2 .2 .2 .2 .2 .2 .3 .3 .3 .3 47. Israel .9 1.0 1.0 1.3 .9 1.2 1.1 1.5 1.3 1.8 1.5 43 Korea (South) 3.9 3.9 5.3 5.4 6.4 7.1 7.3 7.1 7.7 8.7 8.5 44 Malaysia .7 .6 .7 .9 .8 .9 .9 1.0 1.0 1.4 1.4 45 Philippines 2.5 2.8 3.7 4.2 4.4 4.6 4.8 5.1' 4.8 5.1 5.6 46 Thailand 1.1 1.2 1.6 1.5 1.4 1.5 1.5 1.6' 1.6 1.5 1.4 47 Other Asia .4 .2 .4 .5 .5 .5 .5 .6 .5 .7 .8 Africa 48 Egypt .3 .4 ..66 ..66 ..77 .8' .6' .8 .8 .7 1.0 49 Morocco .5 .6 .5 .6 .5 .5 .6 .7 .6 .5 .7 50 Zaire .3 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 51 Other Africa4 .7 1.4 1.6 1.7 1.7 1.9' 2.1' 2.1' 2.2 2.1 2.2 52 Eastern Europe 6.3 6.9 7.2 7.3 7.3 7.2 7.3 7.4 7.7 7.7 7.7 53 U.S.S.R 1.6 1.3 .9 .7 .6 .5 .5 .4 .4 .5 .4 54 Yugoslavia 1.1 1.5 1.8 1.8 1.9 2.1 2.1 2.3 2.4 2.5 2.5 55 Other 3.7 4.1 4.6 4.8 4.9 4.5 4.7 4.6 4.8 4.8 4.8 56 Offshore banking centers 26.1 31.0 38.6 40.4 42.6 44.3 44.6' 47.0' 53.1 59.0 60.9 57 Bahamas 9.9 10.4 13.0 13.7 13.9 13.7 13.2' 13.7' 15.2 17.7 20.8 58 Bermuda .6 .7 .7 .8 .6 .6 .6 .6 .7 .7 .9 59 Cayman Islands and other British West Indies 3.7 7.4 9.5 9.4 11.3 9.8 10.1 10.6 11.7 12.4 11.7 60 Netherlands Antilles .7 .8 1.1 1.2 .9 1.2 1.3 2.1 2.3 2.4 2.2 61 Panama5 3.1 3.0 3.4 4.3 4.9 5.6 5.6 5.4 6.5 6.9 6.7 67 Lebanon .2 .1 .2 .2 .2 .2 .2 .2 .2 .2 .2 63 Hong Kong 3.7 4.2 5.5 6.0 5.7 6.9 7.5 8.1 8.4 10.3 10.3 64 Singapore 3.7 3.9 4.9 4.5 4.7 5.9 5.6 5.9 7.3 8.1 8.0 65 Others6 .5 .5 .4 .4 .4 .4 .4 .3 .9 .3 .1 66 Miscellaneous and unallocated7 5.3 9.1 10.6 11.7 13.1 14.3 13.7 14.0 14.9 15.7 18.2 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 Iraa, 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. Excludes Liberia. of U.S. offices in table 3.17 (excluding those held by agencies and branches of 5. Includes Canal Zone beginning December 1979. foreign banks and those constituting claims on own foreign branches). However, 6. Foreign branch claims only. see also footnote 2. 7. Includes New Zealand; Liberia, and international and regional organizations. 2. Beginning with data for June 1978, the claims of the U.S. offices in this tame include only banks' own claims payable in dollars. For earlier dates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 International Statistics • January 1982 3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1981 1981 Country or area 1979 1980 Jan.- NovP May June July Aug. Sept. Oct. Nov? Holdings (end of period)1 1 Estimated total2 51,484 57,549 62,967 64,263 64,668 66,468 67,039' 68,519 70,543 2 Foreign countries2 46,055 52,961 58,168 59,289 59,658 61,579 62,369' 64,067 66,035 3 Europe2 24,964 24,468 24,641 25,000 24,573 25,090 24,334 24,531 24,952 4 Belgium-Luxembourg 60 77 131 173 163 370 372 384 329 5 Germany2 14,056 12,327 11,940 12,585 13,226 13,524 12,830 13,029 13,226 6 Netherlands 1,466 1,884 1,813 1,781 1,756 1,760 1,756 1,784 1,889 7 Sweden 647 595 572 582 606 623 646 661 645 8 Switzerland2 1,868 1,485 1,535 1,600 763 848 876 861 833 9 United Kingdom 6,376 7,323 7,414 6,976 6,709 6,630 6,469 6,446 6,693 10 Other Western Europe 491 777 1,236 1,304 1,350 1,334 1,385 1,367 1,337 11 Eastern Europe 0 0 0 0 0 0 0 0 0 12 Canada 232 449 486 484 501 514 528 547 508 13 Latin America and Caribbean 466 999 849 666 724 818 854 788 761 14 Venezuela 103 292 287 287 287 313 294 289 306 15 Other Latin America and Caribbean . 200 285 430 217 260 321 313 317 289 16 Netherlands Antilles 163 421 132 162 177 184 246 182 165 17 Asia 19,805 26,112 31,047 31,997 32,716 34,008 35,506' 37,052 38,774 18 Japan 11,175 9,479 9,606 9,778 9,786 9,890 10,102 10,094 10,732 19 Africa 591 919 1,140' 1,139' 1,139 1,140 1,140 1,141 1,037 20 All other -3 14 6 3 6 8 8 8 3 21 Nonmonetary international and regional organizations 5,429 4,588 4,799 4,974 5,010 4,889 4,670' 4,452 4,508 22 International 5,388 4,548 4,791 4,966 5,008 4,887 4,667' 4,450 4,493 23 Latin American regional 37 36 1 1 1 1 1 1 1 Transactions (net purchases, or sales (-) during period) 24 Total2 6,537 6,066 12,994 721 1,297 405 1,799 571' 1,480 2,024 25 Foreign countries2 6,238 6,906 13,073 694 1,121 369 1,920 791' 1,698 1,968 26 Official institutions 1,697 3,865 12,611 321 980 798 1,532 1,376' 1,633 2123 27 Other foreign2 4,543 3,040 462 373 141 -429 388 -585' 65 -155 28 Nonmonetary international and regional organizations 300 -843 -78 26 176 36 -120 -220 -217 56 MEMO: Oil-exporting countries 29 Middle East3 -1,014 7,672 11,139 841 565 659 1.204 1,354' 1,442 1,250 30 Africa4 -100 327 117 0 0 0 0 0 0 -102 1. Estimated official and private holdings of marketable U.S. Treasury securities 2. Beginning December 1978, includes U.S. Treasury notes publicly issued to with an original maturity of more than 1 year. Data are based on a benchmark private foreign residents denominated in foreign currencies. survey of holdings as of Jan. 31, 1971, and monthly transactions reports. Excludes 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign United Arab Emirates (Trucial States). countries. 4. Comprises Algeria, Gabon, Libya, and Nigeria. 3.22 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1981 AAsssseettss 11997788 11997799 11998800 June July Aug. Sept. Oct. Nov. Dec/ 1 Deposits 367 429 411 338 285 255 419 547 534 505 Assets held in custody 2 U.S. Treasury securities1 117,126 95,075 102,417 107.884 105,064 102,197 101,068 101,068 103,894 104,680 3 Earmarked gold2 15,463 15,169 14,965 14,871 14,854 14,833 14,813 14,811 14,802 14,804 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 Transactions, and area or country 1979 1980 J N a o n v .- . May June July Aug. Sept. Oct. Nov.'0 U.S. corporate securities STOCKS 1 Foreign purchases 22,783 40,273 37,565 4,076 4,384 3.455 3,152 2,847r 2,839 2,688 2 Foreign sales 21,104 34,852 32,084 2,860 3,417 3,257 3,206 2,322 2,792 2,493 3 Net purchases, or sales (-) 1,679 5,421 5,481 1,217 967 198 -54 525 47 195 4 Foreign countries 1,662 5,403 5,457 1,207 962 190 -49 531' 53 206 5 Europe 237 3,110 3,381 764 508 119 74 38' 46 109 6 France 137 490 880 393 45 48 29 10 21 -7 7 Germany -215 172 -22 -20 13 -28 -28 -48 6 -4 8 Netherlands -71 -328 84 31 29 -41 -28 -3 13 28 9 Switzerland -519 308 194 84 0 -19 1 -68 -97 0 10 United Kingdom 964 2,523 2,035 215 371 147 85 132' 86 96 11 Canada 552 887 742 143 104 77 -39 44 -47 7 12 Latin America and Caribbean -19 148 4 9 126 -126 -51 -81 7 54 13 Middle East1 688 1,206 1,164 223 33 105 -36 497 164 45 14 Other Asia 211 16 206 71 187 37 20 29 -117 -7 15 Africa -14 -1 7 1 4 -1 0 0 0 1 16 Other countries 7 38 -47 -4 -1 -21 -17 4 -2 -3 17 Nonmonetary international and regional organizations 17 18 24 10 5 8 -5 -5 -6 -12 BONDS2 18 Foreign purchases 8,871 15,425 15,857 897 1,793 1,894 1,171 1,306' 1,166 1,099 19 Foreign sales 7,592 9,964 11,012 669 1,319 820 894 1,051 1,203 1,303 20 Net purchases, or sales (-) 1,279 5,461 4,846 228 474 1,074 277 255 r -36 -204 21 Foreign countries 1,376 5,526 4,791 246 473 1,067 278 243 -27 -212 22 Europe 671 1,576 1,182 -3 179 122 176 5 -106 -112 23 France 56 129 4 17 10 -5 -9 4 5 4 24 Germany 59 213 798 28 151 68 105 64 43 67 25 Netherlands -202 -65 57 4 0 0 -2 -2 3 9 26 Switzerland -118 54 90 34 20 22 22 -23 7 10 27 United Kingdom 814 1.257 120 -87 4 11 45 -53 -164 -174 28 Canada 80 135 -4 18 -6 23 2 -12 -35 -29 29 Latin America and Caribbean 109 185 109 9 12 21 -5 7 -12 4 30 Middle East1 424 3,499 3,527 192 359 853 81 252 84 -72 31 Other Asia 88 117 -17 29 -71 49 24 -9 43 -1 32 Africa 1 5 -1 0 0 0 0 0 0 -1 33 Other countries 1 10 -6 0 1 0 0 -1 0 -2 34 Nonmonetary international and regional organizations -96 -65 55 -18 1 7 -1 12' -10 9 Foreign securities 35 Stocks, net purchases, or sales (-) -817 -2,139 -63 32 -114 108 51 191' -30 -70 36 Foreign purchases 4,617 7,887 8,499 853 891 891 835 794' 588 625 37 Foreign sales 5,434 10,026 8,561 821 1,005 783 784 603 617 695 38 Bonds, net purchases, or sales (-) -3,912 -1,013 -4,500 -194 -479 -417 -32 -258' -154 -2,024 39 Foreign purchases 12,662 17,073 15,839 1,292 1,509 1,768 1,078 1,023 1,553 2,293 40 Foreign sales 16,573 18,086 20,339 1,487 1,988 2,185 1,110 1,281r 1,706 4,316 41 Net purchases, or sales ( —), of stocks and bonds ... -4,729 -3,152 -4,563 -162 -592 -309 19 -67' -183 -2,093 42 Foreign countries -3,979 -4,029 -4,527 -162 -592 -619 62 — 81r -356 -1,505 43 Europe -1,698 -1,105 -809 75 -41 147 -55 76r -45 -504 44 Canada -2,601 -1,959 -3,606 -385 -507 -858 -74 -326' -250 -906 45 Latin America and Caribbean 343 80 175 -51 -10 -24 62 1 50 -6 46 Asia 15 -1,147 -312 174 -104 141 131 177r -113 -148 47 Africa -63 24 -60 -3 -6 -2 -3 -6 1 1 48 Other countries 25 78 84 29 75 -23 1 -y 0 57 49 Nonmonetary international and regional organizations -750 876 -36 0 0 311 -43 14' 173 -588 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 • January 1982 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 June Sept. Dec. Mar. June 1 Total 14,956 17,170r 21,644' 18,760' 18,778' 21,644' 21,681' 21,182' 2 Payable in dollars 11,527 14,095' 17,935' 15,320' 15,441' 17,935' 18,156' 17,997' 3 Payable in foreign currencies2 3,429 3,075 3,709 3,439 3,337 3,709 3,525 3,185' By type 4 Financial liabilities 6,368 7,477' 11,122' 8,528' 8,441' 11,122' 1111,,449922'' 11,386' 5 Payable in dollars 3,853 5,207' 8,350' 5,907' 5,954' 8,350' 88,,886600'' 9,053' 6 Payable in foreign currencies 2,515 2,270 2,772 2,621 2,487 2,772 2,633 2,333 7 Commercial liabilities 88,,558888 9,693 10,521' 10,232 10,337 10,521' 10,188 9,796 8 Trade payables 44,,000011 4,421 4,708' 4,296 4,377 4,708' 4,781 4,400 9 Advance receipts and other liabilities 4,587 5,272 5,814 5,936 5,960 5,814 5,407 5,396 10 Payable in dollars 7,674 8,888 9,585' 9,413 9,487 9,585' 9,296 8,944 11 Payable in foreign currencies 914 805 936 819 850 936 892 852 By area or country Financial liabilities 12 Europe 3,971 4,655 6,314' 5,464' 5,321' 6,314' 6,011' 5,926' 13 Belgium-Luxembourg 293 345 484 437 432 484 553 527' 14 France 173 175 327 347 360 327 324 362' 15 Germany 366 497 582 657 557 582 498 477' lb Netherlands 391 829 663 799 781 663 544 700' 17 Switzerland 248 170 354 233 224 354 315 321 18 United Kingdom 2,167 2,460 3,769' 2,824' 2,836' 3,769' 3,665' 3,419' 19 Canada 247 532' 958' 641' 642' 958' 1,090' 978' 20 Latin America and Caribbean 1,357 1,483 3,103' 1,641 1,734 3,103' 3,483 3,592' 21 Bahamas 478 375 964 429 407 964 1,217 1,272' 22 Bermuda 4 81 1 2 1 1 1 1 23 Brazil 10 18 23 25 20 23 19 20 24 British West Indies 194 514 1,452 714 708 1,452 1,458 11,,553344 25 Mexico 102 121 99 101 108 99 97 9988 26 Venezuela 49 72 81 72 74 81 85 91 27 784 799 723 757 712 723 880 861' 28 Japan 717 726 644 683 618 644 766 741' 29 Middle East oil-exporting countries3 32 31 38 31 37 38 51 29 30 Africa 5 4 11 10 11 11 6 5 31 Oil-exporting countries4 2 1 1 1 1 1 1 0 32 All other5 5 4 15 15 21 15 23 24 Commercial liabilities 33 Europe 3,047 3,636 4,197' 4,036 4,074 4,197' 3,814 3,894 34 Belgium-Luxembourg 97 137 90 133 109 90 83 72 35 France 321 467 582 485 501 582 563 564 36 Germany 523 545 679 724 686 679 639 615 37 Netherlands 246 227 219 245 276 219 246 225 38 Switzerland 302 310 493 462 452 493 385 375 39 United Kingdom 824 1,077 1,017' 1,133 1,047 1,017' 880 949 40 Canada 667 868 806' 591 591 806' 749 661 41 Latin America 997 1,323 11,,224444 1,271 11,,336611 11,,224444 11,,228877 1,156 42 Bahamas 25 69 88 26 88 88 11 4 43 Bermuda 97 32 73 107 114 73 111 72 44 Brazil 74 203 111 151 156 111 84 54 45 British West Indies 53 21 35 37 12 35 16 34 46 Mexico 106 257 326 272 324 326 421 327 47 Venezuela 303 301 307 210 293 307 253 290 48 2,931 2,905 3,005' 3,091 2,909 3,005' 3,071 2,788 49 Japan 448 494 802' 418 502 802' 810 867 50 Middle East oil-exporting countries3 1,523 1,017 894 1,030 944 894 955 852 51 Africa 743 728 814 875 1,006 814 828 675 52 Oil-exporting countries4 312 384 514 498 633 514 519 392 53 All other5 203 233 456 367 396 456 440 622 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 June Sept. Dec. Mar. June 1 Total 28,004 r 31,286' 34,489' 32,449' 32,048' 34,489' 37,661' 35,186' 2 Payable in dollars 25,001' 28,094' 31,563' 29,329' 28,712' 31,563' 34,663' 32,307' 3 Payable in foreign currencies2 3,003r 3,193' 2,926' 3,119' 3,336' 2,926' 2,999' 2,879 By type 4 Financial claims 16,644' 18,431' 19,812' 18,932' 18,633' 19,812' 22,203' 20,133' 5 Deposits 11,201' 12,797' 13,978' 13,096' 12,574' 13,978' 16,474' 14,487' 6 Payable in dollars 10,133' 11,881' 13,203' 12,192' 11,361' 13,203' 15,679' 13,761' 7 Payable in foreign currencies 1,068 916 775 904 1,213 775 795 725 8 Other financial claims 5,443 5,634' 5,834' 5,836' 6,059' 5,834' 5,729' 5,646' 9 Payable in dollars 3,874 3,808' 4,152' 4,108' 4,404' 4,152' 4,082' 3,992' 10 Payable in foreign currencies 1,569 1,826 1,683 1,728 1,655 1,683 1,646 1,655 11 Commercial claims 11,360' 12,855' 14,677' 13,517' 13,415' 14,677' 15,458' 15,053 12 Trade receivables 10,802' 12,161' 13,957' 12,795' 12,714' 13,957' 14,657' 14,222 13 Advance payments and other claims 559 694' 720' 722' 702' 720' 801 830 14 Payable in dollars 10,994' 12,405' 14,208' 13,209' 12,947' 14,208' 14,901 14,554 15 Payable in foreign currencies 366' 450' 468' 488' 469' 468' 557' 499 By area or country Financial claims 16 Europe 5,225' 6,163 6,094 5,899' 5,692' 6,094 6,098 5,212' 17 Belgium-Luxembourg 48 32 195 23 17 195 170 174 18 France 178 177 334 307 409 334 411 377 19 Germany 510 409 230 195 168 230 213 139 20 Netherlands 103 53 32 377 30 32 42 34 21 Switzerland 98 73 59 96 41 59 90 96 22 United Kingdom 4,031' 5,107 4,967 4,926' 4,646' 4,967 4,900 4,046 23 Canada 4,549' 4,984' 5,057' 4,968' 4,948' 5,057' 6,611' 6,168' 24 Latin America and Caribbean 5,714 6,282' 7,682' 6,962' 6,812' 7,682' 8,552' 7,882' 25 Bahamas 3,001 2,757 3,424' 3,098 2,845 3,424' 3,947 3,231 26 Bermuda 80 30 135 25 65 135 13 33 27 Brazil 151 163 96 120 116 96 22 20 28 British West Indies 1,291 2,007' 2,681' 2,414' 2,342' 2,681' 3,398' 3,396' 29 Mexico 162 157 208 177 192 208 168 162 30 Venezuela 157 143 137 139 128 137 131 143 31 920 706 710 781 853 710 691 618 32 Japan 305 199 177 276 331 177 191 107 33 Middle East oil-exporting countries3 18 16 20 16 20 20 17 19 34 Africa 181 253 238 256 260 238 214 216 35 Oil-exporting countries4 10 49 26 35 29 26 27 39 36 All other5 55 44 32 65 68 32 36 37 Commercial claims 37 Europe 3,983' 4,909' 5,511' 4,880' 4,709' 5,511' 5,822 5,449 38 Belgium-Luxembourg 144 202 233' 259' 230 233' 277 235 39 France 609 727 1,129' 666' 710' 1,129' 918 782 40 Germany 399 r 589 591' 514' 571' 591' 597 570 41 Netherlands 267 298 318 297 289 318 347 308 42 Switzerland 198 272 351 434 339 351 461 474 43 United Kingdom 824 901 932' 909' 994' 932' 1,187 1,067 44 Canada 1,094 849' 899' 904' 934' 899' 1,037 987 45 Latin America and Caribbean 2,546 2,853 3,791' 3,291 3,389 3,791' 3,832 3,786 46 Bahamas 109 21 21 19 53 21' 15 29 47 Bermuda 215 197 148 133 81 148 170 192 48 Brazil 628 645 861 696 712 861 799 823 49 British West Indies 9 16 34 9 17 34 15 34 50 Mexico 505 698 1,090 931 992 1,090 1,051 1,110 51 Venezuela 291 343 407 395 388 407 436 417 5? 3,112' 3,450' 3,507' 3,627' 3,443' 3,507' 3,763' 3,721 53 Japan 1,006' 1,175' 1.045' 1,191' 1,135' 1,045' 1,294' 1,171 54 Middle East oil-exporting countries3 716 766 821 830 837 821 925 956 55 Africa 447 554 651 566 669 651 678 701 56 Oil-exporting countries4 136 133 151 115 135 151 143 137 57 All other5 178 240 318' 249 272' 318' 327 409 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 • January 1982 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Dec. 31, 1981 Rate on Dec. 31, 1981 Rate on Dec. 31, 1981 Country Country Country Per- Month Per- Month Percent effective cent effective cent Argentina 165.3 Dec. 1981 France1 17.5 Oct. 1981 Sweden 11.0 Austria .. 6.75 Mar. 1980 Germany, Fed. Rep. of 7.5 May 1980 Switzerland 6.0 Belgium.. 15.0 Dec. 1981 Italy 19.0 Mar. 1981 United Kingdom' Brazil.... 49.0 Mar. 1981 Japan 6.25 Mar. 1981 Venezuela Canada .. 14.66 Dec. 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. Minimum lending rate suspended as of Aug. 20, 1981. more than one rate applicable to such discounts or advances, the rate shown is the one at which it is understood the central bank transacts the NOTE. Rates shown are mainly those at which the central bank either largest proportion of its credit operations. 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1981 CCoouunnttrryy,, oorr ttyyppee 11997799 11998800 11998811 June July Aug. Sept. Oct. Nov. Dec. 1 Eurodollars 11.96 14.00 16.79 17.86 18.50 18.79 17.80 16.34 13.33 13.24 2 United Kingdom 13.60 16.59 13.86 12.61 13.63 14.02 14.60 16.27 15.03 15.31 3 Canada 11.91 13.12 18.34 19.28 19.67 21.84 20.42 18.84 16.53 15.97 4 Germany 6.64 9.45 12.05 13.05 12.92 12.87 12.48 11.72 11.05 10.72 5 Switzerland 2.04 5.79 9.15 10.02 9.76 9.05 10.56 10.85 9.88 9.76 6 Netherlands 9.33 10.60 11.52 11.81 12.38 13.54 12.96 12.57 11.70 11.03 7 France 9.44 12.18 15.28 18.84 17.34 17.40 17.65 16.47 15.35 15.30 8 Italy 11.85 17.50 19.98 20.49 20.78 20.94 21.07 21.00 21.12 21.24 9 Belgium 10.48 14.06 15.28 15.58 16.16 16.00 16.00 15.83 15.28 15.48 10 Japan 6.10 11.45 7.58 7.41 7.16 7.22 7.26 7.13 7.15 6.75 NOTE. Rates are for 3-month interbank loans except for 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 11997799 11998800 11998811 June July Aug. Sept. Oct. Nov. Dec. 1 Australia/dollar 111.77 114.00 114.95 114.07 114.27 113.99 114.86 114.32 114.55 113.39 2 Austria/schilling 7.4799 7.7349 6.2936 5.9502 5.8225 5.6968 6.0554 6.3356 6.4022 6.3088 3 Belgium/franc 3.4098 3.4247 2.7007 2.5734 2.5027 2.4466 2.5978 2.6557 2.6724 2.6115 4 Canada/dollar 85.386 85.530 83.408 83.050 82.601 81.766 83.275 83.136 84.235 84.382 5 Denmark/krone 19.010 17.766 14.080 13.384 13.074 12.732 13.552 13.825 13.944 13.661 6 Finland/markka 27.732 26.892 23.159 22.511 22.045 21.607 22.225 22.601 23.020 22.902 7 France/franc 23.504 23.694 18.489 17.679 17.253 16.720 17.769 17.762 17.782 17.502 8 Germany/deutsche mark 54.561 55.089 44.362 42.054 40.977 39.988 42.545 44.370 44.862 44.293 9 India/rupee 12.265 12.686 11.548 11.688 11.229 11.038 10.971 10.948 10.947 10.952 10 Ireland/pound 204.65 205.77 161.32 153.61 149.40 146.04 155.04 157.50 158.95 157.30 11 Italy/lira .12035 .11694 .08842 .08436 .08233 .08038 .08424 .08374 .08392 .08290 12 Japan/yen .45834 .44311 .45432 .44621 .43055 .42881 .43582 .43198 .44843 .45675 13 Malaysia/ringgit 45.720 45.967 43.406 42.720 42.519 42.119 42.527 43.500 44.323 44.489 14 Mexico/peso 4.3826 4.3535 4.0785 4.1066 4.0650 4.0301 3.9859 3.9371 3.8878 3.8358 15 Netherlands/guilder 49.843 50.369 40.191 37.816 36.833 36.009 38.329 40.151 40.915 40.435 16 New Zealand/dollar 102.23 97.337 86.848 85.823 83.771 82.331 82.644 82.355 83.104 82.784 17 Norway/krone 19.747 20.261 17.459 16.907 16.387 16.177 16.779 16.897 17.194 17.302 18 Portugal/escudo 2.0437 1.9980 1.6275 1.5899 1.5429 1.4999 1.5268 1.5458 1.5534 1.5304 19 South Africa/rand 118.72 128.54 114.77 115.18 108.46 105.27 105.56 104.61 103.82 103.10 20 Spain/peseta 1.4896 1.3958 1.0869 1.0565 1.0248 .99864 1.0407 1.0416 1.0483 1.0313 21 Sri Lanka/rupee 6.4226 6.1947 5.2928 5.3970 5.3491 5.1932 5.0056 4.8372 4.8020 4.9362 22 Sweden/krona 23.323 23.647 19.860 19.802 19.293 18.870 18.435 18.023 18.217 18.049 23 Switzerland/franc 60.121 59.697 51.025 48.226 47.667 46.091 49.511 53.080 56.000 55.098 24 United Kingdom/pound 212.24 232.58 202.43 197.38 187.37 182.03 181.46 184.07 190.25 190.33 MEMO: 25 United States/dollar1 88.09 87.39 102.94 106.86 109.87 112.29 107.98 106.34 104.53 105.21 1. Index of weighted-average exchange value of U.S. dollar against cur- the Weighted-Average Exchange Value of the U.S. Dollar: Revision" on page rencies of other G-10 countries plus Switzerland. March 1973 = 100. 700 of the August 1978 BULLETIN. Weights are 1972-76 global trade of each of the 10 countries. Series revised as of August 1978. For description and back data, see "Index of NOTE. Averages of certified noon buying rates in New York for cable transfers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A69 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, 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, September 30, 1981 January 1982 A76 Commercial bank assets and liabilities, March 31, 1981 July 1981 All Commercial bank assets and liabilities, June 30, 1981 October 1981 A74 Commercial bank assets and liabilities, September 30, 1981 January 1982 A70 Special tables begin on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • January 1982 4.20 DOMESTIC AND FOREIGN OFFICES, Commercial Banks with Assets of $100 Million or over1? Consolidated Report of Condition; Sept. 30, 1981 Millions of dollars Banks with foreign offices2 BBaannkkss IInnssuurreedd wwiitthhoouutt ffoorreeiiggnn 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 ooffffiicceess 1 Total assets 1,563,643 1,171,903 386,353 815,573 391,739 2 Cash and due from depository institutions 300,901 255,788 137,197 118,591 45,113 3 Currency and coin (U.S. and foreign) 14,000 8,137 274 7,863 5,863 4 Balances with Federal Reserve Banks 25,121 19,265 465 18,800 5,856 5 Balances with other central banks 3,443 3,443 3,335 108 N.A. 6 Demand balances with commercial banks in United States 39,806 29,840 4,178 25,662 9,966 7 All other balances with depository institutions in United States and with banks in foreign countries 144,855 132,176 126,417 5,758 12,679 8 Time and savings balances with commercial banks in United States 9,503 2,686 1,451 1,235 6,817 9 Balances with other depository institutions in United States 320 136 83 53 184 10 Balances with banks in foreign countries 135,031 129,354 124,884 4,470 5,678 11 Foreign branches of other U.S. banks N.A. 24,503 22,728 1,775 N.A. 12 Other banks in foreign countries N.A. 104,851 102,155 2,695 N.A. 13 Cash items in process of collection 73,676 62,927 2,527 60,399 10,749 14 Total securities, loans, and lease financing receivables 1,145,685 816,594 217,906 598,688 329,091 15 Total securities, book value 225,820 125,404 9,841 115,564 100,416 16 U.S. Treasury 63,522 31,104 305 30,799 32,418 17 Obligations of other U.S. government agencies and corporations 36,029 16,225 49 16,176 19,804 18 Obligations of states and political subdivisions in United States 101,963 56,839 660 56,179 45,124 19 All other securities 24,306 21,236 8,826 12,410 3,070 20 Other bonds, notes, and debentures 10,646 8,569 7,144 1,425 2,077 21 Federal Reserve and corporate stock 1,841 1,384 199 1,184 457 22 Trading account securities 11,820 11,283 1,483 9,800 537 23 Federal funds sold and securities purchased under agreements to resell 51,947 32,282 427 31,856 19,665 24 Total loans, gross 876,030 659,903 207,208 452,696 216,127 25 LESS: Unearned income on loans 13,904 7,393 1,813 5,580 6,511 26 Allowance for possible loan loss 8,970 6,572 264 6,308 2,397 27 EQUALS: Loans, net 853,156 645,938 205,130 440,808 207,218 Total loans, gross, by category 28 Real estate loans 207,421 127,424 7,962 119,462 79,996 29 Construction and land development N.A. N.A. N.A. 27,675 9,566 30 Secured by farmland N.A. N.A. N.A. 850 1,267 31 Secured by residential properties N.A. N.A. N.A. 67,578 44,896 32 1- to 4-family N.A. N.A. N.A. 64,096 42,796 33 FHA-insured or VA-guaranteed N.A. N.A. N.A. 3,783 2,003 34 Conventional N.A. N.A. N.A. 60,313 40,793 35 Multifamily N.A. N.A. N.A. 3,482 2,100 36 FHA-insured N.A. N.A. N.A. 222 76 37 Conventional N.A. N.A. N.A. 3,260 2,024 38 Secured by nonfarm nonresidential properties N.A. N.A. N.A. 23,359 24,267 39 Loans to financial institutions 88,141 83,298 39,271 44,027 4,843 40 REITs and mortgage companies in United States 5,210 4,524 157 4,367 686 41 Commercial banks in United States 10,726 8,475 583 7,892 2,251 42 U.S. branches and agencies of foreign banks N.A. 3,938 422 3,516 N.A. 43 Other commercial banks N.A. 4,537 161 4,376 N.A. 44 Banks in foreign countries 41,609 41,136 30,993 10,143 473 45 Foreign branches of other U.S. banks N.A. 700 363 338 N.A. 46 Other N.A. 40,436 30,630 9,806 N.A. 47 Finance companies in United States 10,982 10,541 287 10,254 441 48 Other financial institutions 19,614 18,622 7,251 11,371 992 49 Loans for purchasing or carrying securities 13,674 11,924 1,415 10,508 1,750 50 Brokers and dealers in securities 9,231 8,840 1,058 7,781 391 51 Other 4,443 3,084 357 2,727 1,359 52 Loans to finance agricultural production and other loans to farmers 10,769 6,423 735 5,688 4,346 53 Commercial and industrial loans 376,933 311,962 123,215 188,746 64,971 54 U.S. addressees (domicile) N.A. 192,085 11,981 180,104 N.A. 55 Non-U.S. addressees (domicile) N.A. 119,877 111,234 8,643 N.A. 56 Loans to individuals for household, family, and other personal expenditures 130,964 74,341 6,301 68,040 56,623 57 Installment loans N.A. N.A. N.A. 56,260 46,473 58 Passenger automobiles N.A. N.A. N.A. 16,763 20,264 59 Credit cards and related plans N.A. N.A. N.A. 19,990 7,421 60 Retail (charge account) credit card N.A. N.A. N.A. 15,947 6,104 61 Check and revolving credit N.A. N.A. N.A. 4,044 1,318 62 Mobile homes N.A. N.A. N.A. 3,361 3,408 63 Other installment loans N.A. N.A. N.A. 16,146 15,379 64 Other retail consumer goods N.A. N.A. N.A. 4,392 3,394 65 Residential property repair and modernization N.A. N.A. N.A. 3,663 3,972 66 Other installment loans for household, family, and other personal expenditures N.A. N.A. N.A. 8,091 8,014 67 Single-payment loans N.A. N.A. N.A. 11,779 10,151 68 All other loans 48,129 44,532 28,308 16,224 3,597 69 Loans to foreign governments and official institutions N.A. 28,767 25,770 2,997 N.A. 70 Other N.A. 15,765 2,538 13,227 N.A. 71 Lease financing receivables 14,762 12,970 2,509 10,461 1,792 72 Bank premises, furniture and fixtures, and other assets representing bank premises 21,090 12,929 1,365 1111,,556655 8,160 73 Real estate owned other than bank premises 1,713 1,096 107 998899 617 74 All other assets 94,254 85,496 29,778 85,741 8,758 75 Investment in unconsolidated subsidiaries and associated companies 1,375 1,320 992 328 55 76 Customers' liability on acceptances outstanding 49,384 49,019 11,013 38,006 365 77 U.S. addressees (domicile) N.A. 16,040 N.A. N.A. N.A. 78 Non-U.S. addressees (domicile) N.A. 32,980 N.A. N.A. N.A. 79 Net due from foreign branches, foreign subsidiaries, Edge and agreement subsidiaries... N.A. N.A. 4,461 25,562 N.A. 80 Other 43,495 35,156 13,312 21,844 8,338 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A71 4.20 Continued Banks with foreign offices2 BBaannkkss wwiitthhoouutt IInnssuurreedd ffoorreeiiggnn 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 ooffffiicceess 81 Total liabilities and equity capital4 1,563,643 1,171,903 N.A. N.A. 391,739 82 Total liabilities excluding subordinated debt 1,476,729 1,115,083 386,087 759,019 361,646 83 Total deposits 1,193,990 873,887 321,448 552,440 320,103 84 Individuals, partnerships, and corporations 868,755 586,648 141,267 445,381 282,107 85 U.S. government 4,002 2,725 335 2,390 1,277 86 States and political subdivisions in United States 50,325 25,082 572 24,510 25,243 87 All other 257,195 248,977 177,719 71,258 8,218 88 Foreign governments and official institutions 36,060 35,910 29,901 6,009 150 89 Commercial banks in United States 82,193 74,467 21,523 52,944 7,727 90 U.S. branches and agencies of foreign banks N.A. 9,822 3,528 6,294 N.A. 91 Other commercial banks in United States N.A. 64,645 17,995 46,650 N.A. 92 Banks in foreign countries 138,942 138,601 126,295 12,305 342 93 Foreign branches of other U.S. banks N.A. 23,574 23,528 46 N.A. 94 Other banks in foreign countries N.A. 115,026 102,768 12,259 N.A. 95 Certified and officers' checks, travelers checks, and letters of credit sold for cash 13,713 10,455 1,555 8,900 3,258 96 Federal funds purchased and securities sold under agreements to repurchase in domestic offices and Edge and agreement subsidiaries 137,705 108,967 327 108,640 28,738 97 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed money 50,658 45,744 17,211 28,533 4,914 98 Interest-bearing demand notes (note balances) issued to U.S. Treasury 15,163 11,996 N.A. 11,996 3,167 99 Other liabilities for borrowed money 35,495 33,748 17,211 16,537 1,747 100 Mortgage indebtedness and liability for capitalized leases 1,976 1,288 12 1,276 688 101 All other liabilities 92,400 85,196 47,089 68,130 7,204 102 Acceptances executed and outstanding 49,601 49,236 9,384 39,853 365 103 Net aue to foreign branches, foreign subsidiaries, Edge and agreement subsidiaries N.A. N.A. 25,562 4,461 N.A. 104 Other 42,799 35,960 12,143 23,816 6,839 105 Subordinated notes and debentures 5,622 3,979 266 3,712 1,643 106 Total equity capital4 81,292 52,842 N.A. N.A. 28,450 107 Preferred stock 126 29 N.A. N.A. 97 108 Common stock 15,883 10,423 N.A. N.A. 5,460 109 Surplus 27,570 16,993 N.A. N.A. 10,577 110 Undivided profits and reserve for contingencies and other capital reserves 37,713 25,397 N.A. N.A. 12,316 111 Undivided profits 36,866 24,996 N.A. N.A. 11,869 112 Reserve for contingencies and other capital reserves 847 400 N.A. N.A. 447 MEMO Deposits in domestic offices 113 Total demand 296,237 207,954 0 207,954 88,283 114 Total savings 141,657 73,186 0 73,186 68,471 115 Total time 434,649 271,299 0 271,299 163,349 116 Time deposits of $100,000 or more 243,162 181,467 0 181,467 61,695 117 Certificates of deposit (CDs) in denominations of $100,000 or more 226,619 168,453 0 168,453 58,166 118 Other 16,543 13,014 0 13,014 3,529 119 Savings deposits authorized for automatic transfer and NOW accounts 35,939 18,715 0 18,715 17,224 120 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks 130,147 62,354 0 62,354 67,793 121 Demand deposits adjusted5 172,200 101,652 0 101,652 70,548 122 Standby letters of credit, total 60,046 55,874 11,780 44,094 4,172 123 U.S. addressees (domicile) N.A. 39,570 N.A. N.A. N.A. 124 Non-U.S. addressees (domicile) N.A. 16,305 N.A. N.A. N.A. 125 Standby letters of credit conveyed to others through participations (included in total standby letters of credit) 3,643 3,387 717 2,670 256 126 Holdings of commercial paper included in total gross loans N.A. N.A. N.A. 196 576 Average for 30 calendar days (or calendar month) ending with report date 127 Total assets 1,532,096 1,142,303 351,685 790,618 389,793 128 Cash and due from depository institutions 285,733 242,483 132,656 109,827 43,250 129 Federal funds sold and securities purchased under agreements to resell 51,936 30,457 822 29,636 21,479 130 Total loans 849,340 640,992 201,237 439,755 208,348 131 Total deposits 1,166,680 847,536 312,325 535,211 319,144 132 Time CDs in denominations of $100,000 or more in domestic offices 231,611 N.A. N.A. 173,542 58,069 133 Federal funds purchased and securities sold under agreements to repurchase 142,167 113,024 4,611 108,413 29,142 134 Other liabilities for borrowed money 34,256 32,705 16,640 16,065 1,550 135 Number of banks 1,533 188 188 188 1,345 For notes see page A75. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • January 1982 4.21 DOMESTIC OFFICES, Insured Commercial Banks with Assets of $100 Million or over16'' Consolidated Report of Condition; Sept. 30, 1981 Millions of dollars Member banks NNoonn-- Item IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 1 Total assets 1,207,312 1,027,710 771,117 256,593 179,602 2 Cash and due from depository institutions 163,704 146,911 98,167 48,745 16,792 3 Currency and coin (U.S. and foreign) 13,726 11,704 9,171 2,533 2,022 4 Balances with Federal Reserve Banks 24,656 24,036 17,790 6,245 621 5 Balances with other central banks 108 108 105 3 0 6 Demand balances with commercial banks in United States 35,628 29,880 16,167 13,713 5,748 7 All other balances with depository institutions in United States and with banks in foreign countries 18,437 12,496 10,220 2,275 5,941 8 Time and savings balances with commercial banks in United States 8,052 4,878 4,146 732 3,175 9 Balances with other depository institutions in United States 237 122 44 79 115 10 Balances with banks in foreign countries 10,148 7,496 6,031 1,465 2,652 11 Cash items in process of collection 71,149 68,689 44,714 23,975 2,460 12 Total securities, loans, and lease financing receivables 927,779 774,871 594,034 180,837 152,908 13 Total securities, book value 215,979 171,470 129,624 41,847 44,509 14 U.S. Treasury 63,217 48,354 35,915 12,438 14,863 15 Obligations of other U.S. government agencies and corporations 35,980 26,893 21,559 5,334 9,086 16 Obligations of states and political subdivisions in United States 101,303 82,477 62,389 20,088 18,826 17 All other securities 15,480 13,747 9,760 3,986 1,733 18 Other bonds, notes, and debentures 3,502 2,086 1,500 586 1,416 19 Federal Reserve and corporate stock 1,641 1,465 1,096 369 177 20 Trading account securities 10,377 10,196 7,165 3,031 141 21 Federal funds sold and securities purchased under agreements to resell 51,520 44,347 34,906 9,441 7,173 22 Total loans, gross 668,823 564,619 434,002 130,617 104,203 23 LESS: Unearned income on loans 12,092 9,234 7,021 2,213 2,858 24 Allowance for possible loan loss 8,705 7,603 5,680 1,923 1,102 25 EQUALS: Loans, net 648,026 547,783 421,301 126,481 100,243 Total loans, gross, by category 26 Real estate loans 199,458 159,680 131,004 28,677 39,778 27 Construction and land development 37,241 31,522 24,451 7,071 5,719 28 Secured by farmland 2,118 1,576 1,442 134 541 29 Secured by residential properties 112,473 90,667 75,832 14,835 21,806 30 1- to 4-family 106,892 86,153 72,235 13,918 20,739 31 FHA-insured or VA-guaranteed 5,785 5,114 4,234 879 672 32 Conventional 101,106 81,039 68,001 13,039 20,067 33 Multifamily 5,582 4,514 3,597 917 1,067 34 FHA-insured 298 230 129 101 67 35 Conventional 5,284 4,284 3,468 816 1,000 36 Secured by nonfarm nonresidential properties 47,626 35,915 29,278 6,636 11,711 37 Loans to financial institutions 48,871 45,003 28,632 16,371 3,868 38 REITs and mortgage companies in United States 5,053 4,759 3,621 1,139 293 39 Commercial banks in United States 10,143 7,641 5,006 2,634 2,503 40 Banks in foreign countries 10,616 10,275 5,763 4,512 341 41 Finance companies in United States 10,695 10,476 6,298 4,178 220 42 Other financial institutions 12,363 11,852 7,943 3,909 511 43 Loans for purchasing or carrying securities 12,258 11,675 5,850 5,825 584 44 Brokers and dealers in securities 8,172 7,900 2,994 4,906 272 45 Other 4,086 3,774 2,855 919 312 46 Loans to finance agricultural production and other loans to farmers 10,034 8,980 8,356 624 1,054 47 Commercial and industrial loans 253,718 221,757 167,206 54,551 31,960 48 Loans to individuals for household, family, and other personal expenditures 124,663 99,427 80,650 18,777 25,236 49 Installment loans 102,733 81,572 66,549 15,023 21,161 50 Passenger automobiles 37,027 28,009 22,876 5,134 9,017 51 Credit cards and related plans 27,412 24,372 19,493 4,879 3,040 52 Retail (charge account) credit card 22,050 19,732 15,879 3,835 2,318 53 Check and revolving credit 5,361 4,639 3,596 1,044 722 54 Mobile homes 6,769 5,432 4,952 479 1,337 55 Other installment loans 31,526 23,759 19,228 4,531 7,766 56 Other retail consumer goods 7,786 6,220 5,246 974 1,566 57 Residential property repair and modernization 7,635 5,486 4,464 1,022 2,150 58 Other installment loans for household, family, and other personal expenditures 16,105 12,054 9,518 2,535 4,051 59 Single-payment loans 21,930 17,855 14,101 3,754 4,075 60 All other loans 19,821 18,097 12,304 5,793 1,725 61 Lease financing receivables 12,254 11,271 8,203 3,068 983 62 Bank premises, furniture and fixtures, and other assets representing bank premises 19,725 16,006 13,064 2,942 3,719 63 Real estate owned other than bank premises 1,605 1,335 1,072 263 270 64 All other assets 94,499 88,587 64,781 23,806 5,912 65 Investment in unconsolidated subsidiaries and associated companies 383 352 328 24 31 66 Customers' liability on acceptances outstanding 38,371 37,592 27,049 10,542 780 67 Net due from foreign branches, foreign subsidiaries. Edge and agreement subsidiaries... 25,562 24,413 19,186 5,227 1,148 68 Other 30,183 26,230 18,218 8,013 3,953 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A73 4.21 Continued Member banks NNoonn-- Item IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 69 Total liabilities and equity capital7 1,207,312 1,027,710 771,117 256,593 179,602 70 Total liabilities excluding subordinated debt 1,120,665 954,691 715,647 239,044 165,974 71 Total deposits 872,542 723,304 548,939 174,364 149,239 72 Individuals, partnerships, and corporations 727,488 595,322 467,437 127,885 132,166 73 U.S. government 3,667 3,199 2,494 705 468 74 States and political subdivisions in United States 49,753 37,612 30,812 6,800 12,141 75 Allother 79,476 76,777 42,473 34,304 2,699 76 Foreign governments and official institutions 6,159 5,898 3,822 2,076 261 77 Commercial banks in United States 60,671 58,638 32,787 25,851 2,033 78 Banks in foreign countries 12,647 12,242 5,864 6,378 405 79 Certified and officers' checks, travelers checks, and letters of credit sold for cash 12,158 10,394 5,724 4,669 1,764 80 Demand deposits 296,237 257,722 176,580 81,142 38,515 81 Mutual savings banks 985 829 438 391 156 82 Other individuals, partnerships, and corporations 207,256 174,399 130,241 44,158 32,857 83 U.S. government 3,194 2,823 2,176 647 372 84 States and political subdivisions in United States 9,931 8,015 6,417 1,598 1,915 85 Allother 62,713 61,262 31,584 29,678 1,451 86 Foreign governments and official institutions 1,677 1,635 860 775 42 87 Commercial banks in United States 49,694 48,490 25,583 22,908 1,204 88 Banks in foreign countries 11,342 11,137 5,142 5,995 206 89 Certified and officers' checks, travelers checks, and letters of credit sold for cash 12,158 10,394 5,724 4,669 1,764 90 Time deposits 434,649 354,136 282,343 71,793 80,513 91 Mutual savings banks 537 398 271 127 139 92 Other individuals, partnerships, and corporations 378,595 309,450 247,367 62,083 69,146 93 U.S. government 437 345 290 56 91 94 States and political subdivisions in United States 38,341 28,452 23,547 4,904 9,889 95 Allother 16,739 15,492 10,868 4,624 1,247 96 Foreign governments and official institutions 4,463 4,244 2,945 1,299 218 97 Commercial banks in United States 10,972 10,143 7,200 2,942 829 98 Banks in foreign countries 1,304 1,104 722 382 200 99 Savings deposits 141,657 111,445 90,017 21,429 3300,,221122 100 Mutual savings banks 00 101 Other individuals, partnerships, and corporations 140,115 110,246 89,120 21,126 2299,,886688 102 Individuals and nonprofit organizations 134,249 106,034 85,723 20,310 2288,,221166 103 Corporations and other profit organizations 5,865 4,213 3,397 816 11,,665533 104 U.S. government 36 31 28 2 66 105 States and political subdivisions in United States 1,481 1,145 847 298 333377 106 Allother 24 23 21 3 11 107 Foreign governments and official institutions 19 18 16 2 11 108 Commercial banks in United States 5 4 4 109 Banks in foreign countries 110 Federal funds purchased and securities sold under agreements to repurchase 137,377 127,163 92,372 34,791 10,215 111 Interest-bearing demand notes issued to U.S. Treasury and other liabilities for borrowed money 33,447 31,458 20,288 11,170 1,989 112 Interest-bearing demand notes (note balances) issued to U.S. Treasury 15,163 14,038 10,326 3,712 1,125 113 Other liabilities for borrowed money 18,284 17,420 9,962 7,458 864 114 Mortgage indebtedness and liability for capitalized leases 1,964 1,621 1,352 269 343 115 All other liabilities 75,334 71,146 52,696 18,450 4,188 116 Acceptances executed and outstanding 40,217 39,438 28,869 10,569 780 117 Net due to foreign branches, foreign subsidiaries. Edge and agreement subsidiaries 4,461 4,252 3,605 647 209 118 Other 30,655 27,456 20,222 7,234 3,200 119 Subordinated notes and debentures 5,356 4,220 3,030 1,189 1,136 120 Total equity capital7 81,292 68,799 52,439 16,360 12,493 MEMO 121 Time deposits of $100,000 or more 243,162 206,532 159,696 46,836 36,630 122 Certificates of deposit (CDs) in denominations of $100,000 or more 226,619 191,490 148,121 43,369 35,129 123 Other 16,543 15,042 11,575 3,467 1,501 124 Savings deposits authorized for automatic transfer and NOW accounts 35,939 28,433 23,646 4,787 7,506 125 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks 130,147 100,848 84,604 16,243 29,300 126 Demand deposits adjusted5 172,200 137,721 104,107 33,613 34,479 127 Total standby letters of credit 48,266 45,969 32,154 13,815 2,297 128 Conveyed to others through participation (included in standby letters of credit) 2,925 2,825 2,184 640 101 129 Holdings of commercial paper included in total gross loans 771 • 502 352 149 270 Average for 30 calendar days (or calendar month) ending with report date 130 Total assets. 1,180,411 1,002,279 755,810 246,470 178,131 131 Cash and due from depository institutions 153,077 137,014 94,116 42,898 16,063 132 Federal funds sold ana securities purchased under agreements to resell 51,115 43,365 34,175 9,190 7,750 133 Total loans 648,103 547,386 422,791 124,596 100,717 134 Total deposits 854,355 705,870 541,051 164,819 148,485 135 Time CDs in denominations of $100,000 or more in domestic offices 231,611 196,734 147,393 49,341 34,877 136 Federal funds purchased and securities sold under agreements to repurchase 137,556 127,646 97,078 30,568 9,910 137 Other liabilities for borrowed money 17,616 16,660 9,410 7,250 956 138 Number of banks 1,533 977 811 166 556 For notes see page A75. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • January 1982 4.22 DOMESTIC OFFICES, Insured Commercial Bank Assets and Liabilities1? Consolidated Report of Condition; Sept. 30, 1981 Millions of dollars Member banks NNoonn-- Item IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 1 Total assets 1,603,331 1,193,773 911,358 282,415 409,558 2 Cash and due from depository institutions 196,301 162,374 111,338 51,036 33,927 3 Currency and coin (U.S. and foreign) 19.183 14,210 11,293 2,918 4,973 4 Balances with Federal Reserve Banks 27,508 26,795 20,117 6,678 713 5 Balances with other central banks 108 108 105 3 0 6 Demand balances with commercial banks in United States 48,535 34,190 19,898 14,293 14,344 7 All other balances with depository institutions in United States and banks in foreign countries 27,166 16,652 13,800 2,852 10,515 8 Cash items in process of collection 73,801 70,419 46,126 24,293 3,382 9 Total securities, loans, and lease financing receivables 1,274,658 918,643 715,318 203,325 356,015 10 Total securities, book value 333,714 219,949 170,522 49,427 113,765 11 U.S. Treasury 102,174 64.118 49,036 15,083 38,056 12 Obligations of other U.S. government agencies and corporations 66,871 39,129 31,844 7,285 27,741 13 Obligations of states and political subdivisions in United States 147.200 102,087 79,163 22,924 45,113 14 All other securities 17.469 14,614 10,479 4,135 2,855 15 Federal funds sold and securities purchased under agreements to resell 71.984 53,158 42,395 10,763 18,826 16 Total loans, gross 886.419 654,855 510,059 144,795 231,564 17 LESS: Unearned income on loans 19,275 12,261 9,570 2,691 7,014 18 Allowance for possible loan loss 10,791 8.518 6,468 2,050 2,274 19 EQUALS: Loans, net 856.353 634,076 494,021 140,055 222,277 Total loans, gross, by category 20 Real estate loans 277.249 191,513 157,336 34,177 85,736 21 Construction and land development 42.624 33,428 26,127 7,300 9,197 22 Secured by farmland 8,411 3,702 3,116 586 4,709 23 Secured by residential properties 159,554 110,822 92,369 18,453 48,733 24 1- to 4-family 152,696 105,815 88,363 17,452 46,881 25 Multif amily 6,858 5,007 4,006 1,001 1,851 26 Secured by nonfarm nonresidential properties 66,659 43,561 35,724 7,838 23,098 27 Loans to financial institutions 51,380 46,182 29,667 16,515 5,198 28 Loans for purchasing or carrying securities 12,870 11.897 6,042 5,885 973 29 Loans to finance agricultural production and other loans to farmers 33,553 17,946 15,685 2,262 15,606 30 Commercial and industrial loans 305,231 242,853 185,274 57,579 62,378 31 Loans to individuals for household, family, and other personal expenditures 182,732 124,867 102,505 22,362 57,865 32 Installment loans 147,057 101,481 83,768 17,713 45,576 33 Passenger automobiles 59,453 37,484 30,931 6,552 21,969 34 Credit cards and related plans 30,687 27,010 22,066 4,944 3,677 35 Mobile homes 10,241 7,006 6,303 703 3,236 36 All other installment loans for household, family, and other personal expenditures 46,676 29,982 24,467 5,515 16,694 37 Single-payment loans 35,675 23,386 18,738 4,648 12,289 38 All other loans 23,404 19,597 13,550 6,046 3,807 39 Lease financing receivables 12,607 11,460 8,379 3,081 1,147 40 Bank premises, furniture and fixtures, and other assets representing bank premises 27,737 19,313 15,860 3,453 8,424 41 Real estate owned other than bank premises 2,299 1.588 1,277 311 711 42 All other assets 102,336 91,856 67,566 24,290 10,481 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A75 4.22 Continued Member banks Item IInnssuurreedd mmeemmbbeerr iinnssuurreedd Total National State 43 Total liabilities and equity capital7 1,603,331 1,193,773 911,358 282,415 409,558 44 Total liabilities excluding subordinated debt 1,481,073 1,106,012 843,479 262,533 375,060 45 Total deposits 1,217,267 867,158 670,340 196,818 350,109 46 Individuals, partnerships, and corporations 1,039,278 726,088 577,652 148,436 313,191 47 U.S. government 4,603 3,621 2,856 766 982 48 States and political subdivisions in United States 77,577 48,366 39,960 8,406 29,211 49 Allother 80,676 77,454 43,082 34,372 3,222 50 Certified and officers' checks, travelers checks, and letters of credit sold for cash 15,133 11,630 6,791 4,838 3,504 51 Demand deposits 375,652 291,382 205,270 86,112 84,269 52 Individuals, partnerships, and corporations 277,837 204,515 155,617 48,898 73,321 53 U.S. government 3,937 3,171 2,483 688 766 54 States and political subdivisions in United States 15,300 10,344 8,386 1,958 4,956 55 Allother 63,445 61,722 31,993 29,730 1,723 56 Certified and officers' checks, travelers checks, and letters of credit sold for cash 15,133 11,630 6,791 4,838 3,504 57 Time deposits 627,079 433,050 348,820 84,230 194,029 58 Other individuals, partnerships, and corporations 550,343 380,846 307,373 73,474 169,496 59 U.S. government 617 412 338 74 205 60 States and political subdivisions in United States 58,964 36,111 30,068 6,043 22,852 61 All other 17,156 15,680 11,042 4,639 1,476 62 Savings deposits 214,537 142,726 116,250 26,476 71,811 63 Corporations and other profit organizations 8,435 5,251 4,274 977 3,184 64 Other individuals, partnerships, and corporations 202,664 135,475 110,387 25,088 67,189 65 U.S. government 50 38 35 3 11 66 States and political subdivisions in United States 3,313 1,910 1,506 405 1,403 67 Allother 75 51 48 4 24 68 Federal funds purchased and securities sold under agreements to repurchase 145,284 131,261 95,930 35,331 14,023 69 Interest-bearing demand notes (note balances) issued to U.S. Treasury and other liabilities for borrowed money 34,658 32,108 20,843 11,265 2,550 70 Mortgage indebtedness and liability for capitalized leases 2,358 1,759 1,461 298 599 71 All other liabilities 81,506 73,726 54,905 18,822 7,780 72 Subordinated notes and debentures 6,068 4,500 3,279 1,222 1,568 73 Total equity capital7 116,190 83,261 64,600 18,661 32,929 MEMO 74 Time deposits of $100,000 or more 287,937 224,687 175,542 49,145 63,251 75 Certificates of deposit (CDs) in denominations of $100,000 or more 268,164 208,382 162,867 45,515 59,782 76 Other 19,773 16,305 12,675 3,630 3,469 77 Savings deposits authorized for automatic transfer and NOW accounts 56,379 37,168 31,125 6,043 19,210 78 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks 227,40 140,915 118,182 22,733 86,485 79 Demand deposits adjusted5 247,492 168,843 130,671 38,172 78,649 80 Total standby letters of credit 49,662 46,513 32,608 13,904 3,149 Average for 30 calendar days (or calendar month) ending with report date 81 Total deposits 1,199,324 849,860 662,328 187,532 349,464 82 Number of banks 14,437 5,479 4,462 1,017 8,958 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 varying 6. Domestic offices exclude branches in foreign countries and in U.S. territories levels of reporting detail. and possessions, subsidiaries in foreign countries, and all offices of Edge Act and 2. All transactions between domestic and foreign offices of a bank are reported agreement corporations wherever located. in "Net due from" and "Net due to" (lines 79 and 103). All other lines represent 7. This item contains the capital accounts of U.S. banks that have no Edge or transactions with parties other than the domestic and foreign offices of each bank. foreign operations and reflects the difference between domestic office assets and Since these intra-office transactions are erased by consolidation, total assets and liabilities of U.S. banks with Edge or foreign operations excluding the capital liabilities are the sum of all except intra-office balances. accounts of their Edge or foreign subsidiaries. 3. Foreign offices include branches in foreign countries and in U.S. territories N.A. This item is unavailable for all or some of the banks because of the lesser and possessions, subsidiaries in foreign countries, and all offices of Edge Act and detail available from banks without foreign offices, the inapplicability of certain agreement corporations wherever located, items to banks that have only domestic offices, and the absence of detail on a fully consolidated basis for banks with foreign offices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • January 1982 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 19811 Millions of dollars All states2 New York CCaallii-- Other states2 IItteemm ffoorrnniiaa,, Illinois, Total Branches Agencies Branches Agencies ttoottaall33 branches Branches Agencies 1 Total assets4 182,316 127,155 55,161 111,820 17,326 34,865 7,110 7,967 3,227 2 Cash and due from depository institutions 37,012 33,181 3,831 32,444 3,499 297 524 165 82 3 Currency and coin (U.S. and foreign) 20 17 3 14 1 2 1 2 0 4 Balances with Federal Reserve Banks 1,146 1,051 94 940 49 33 25 81 18 5 Balances with other central banks 14 14 0 14 0 0 0 0 0 6 Demand balances with commercial banks in United States 23,475 20,291 3,184 20,193 3,066 137 50 22 6 7 All other balances with depository institutions in United States and with banks in foreign countries 9,387 9,132 255 8,612 90 124 445 59 57 8 Time and savings balances with commercial banks in United States 4,815 4,694 120 4,433 35 82 188 58 20 9 Balances with other depository institutions in United States 969 968 1 968 1 1 0 0 0 10 Balances with banks in foreign countries 3,603 3,470 133 3,212 54 41 257 1 38 11 Foreign branches of U.S. banks 1,055 1,024 31 977 20 5 47 0 6 12 Other banks in foreign countries 2,548 2,446 102 2,234 34 36 210 1 32 13 Cash items in process of collection 2,971 2,676 296 2,671 294 1 3 1 1 14 Total securities, loans, and lease financing receivables.. 104,597 74,469 30,128 64,347 9,969 17,385 6,071 3,863 2,962 15 Total securities, book value 3,818 2,560 1,257 2,322 1,129 130 206 30 0 16 U.S. Treasury 2,253 1,557 695 1,465 649 48 66 25 0 17 Obligations of other U.S. government agencies and corporations 549 176 373 165 357 17 7 3 0 18 Obligations of states and political subdivisions in United States 163 162 1 143 1 1 16 2 0 19 Other bonds, notes, debentures, and corporate stock 853 666 188 550 123 65 116 0 0 20 Federal funds sold and securities purchased under agreements to resell 7,292 5,357 1,935 5,109 1,414 520 166 76 7 By holder 21 Commercial banks in United States 6,381 4,755 1,626 4,561 1,183 442 116 72 7 22 Others 911 602 309 548 231 78 50 4 0 By type 23 One-day maturity or continuing contract 7,275 5,340 1,935 5,096 1,414 518 164 76 7 24 Securities purchased under agreements to resell... 218 190 28 123 27 2 0 65 0 25 Other 7,057 5,150 1,907 4,973 1,387 164 11 7 26 Other securities purchased under agreements to 516 resell 17 17 0 13 0 2 0 0 2 27 Total loans, gross 100,939 72,007 28,932 62,114 8,852 17,302 5,871 3,834 2,965 28 LESS: Unearned income on loans 161 100 61 91 12 47 6 2 3 29 EQUALS: Loans, net 100,778 71,907 28,871 62,023 8,840 17,255 5,865 3,833 2,962 Total loans, gross, by category 30 Real estate loans 3,498 1,166 2,332 760 410 1,250 26 336 716 31 Loans to financial institutions 34,393 27,776 6,618 24,924 1,708 4,568 2,504 347 343 32 Commercial banks in United States 21,419 17,278 4,140 15,050 641 3,465 1,889 339 35 33 U.S. branches and agencies of other foreign banks 19,915 15,888 4,027 13,804 600 3,393 1,887 198 34 34 Other commercial banks 1,504 1,390 114 1,246 41 73 3 141 0 35 Banks in foreign countries 11,965 9,634 2,330 9,181 957 1,077 451 2 297 36 Foreign branches of U.S. banks 840 675 166 635 119 30 39 0 16 37 Other 11,125 8,960 2,165 8,545 838 1,047 412 2 281 38 Other financial institutions 1,010 863 147 693 110 25 163 7 12 39 Loans for purchasing or carrying securities 993 805 189 748 167 51 25 2 0 40 Commercial and industrial loans 52,049 34,124 17,925 27,949 5,854 10,368 2,990 3,098 1,791 41 U.S. addressees (domicile) 32,113 20,727 11,386 15,800 2,861 7,061 2,645 2,232 1,515 42 Non-U.S. addressees (domicile) 19,936 13,397 6,539 12,149 2,994 3,307 345 866 276 43 Loans to individuals for household, family, and other personal expenditures 169 108 60 73 18 48 9 18 2 44 All other loans 9,837 8,029 1,808 7,661 695 1,017 318 32 113 45 Loans to foreign governments and official institutions 8,089 6,363 1,726 6,050 643 984 293 20 99 46 Other 1,748 1,665 82 1,611 53 33 25 12 14 47 Lease financing receivables 1 1 0 1 0 0 0 0 0 48 All other assets 33,414 14,148 19,266 9,920 2,443 16,662 350 3,864 175 49 Customers' liability on acceptances outstanding 9,190 5,599 3,591 5,294 1,895 1,651 130 175 45 50 U.S. addressees (domicile) 4,526 2,839 1,686 2,724 240 1,430 104 11 16 51 Non-U.S. addressees (domicile) 4,664 2,759 1,905 2,570 1,655 221 25 163 29 52 Net due from related banking institutions5 17,992 3,857 14,135 295 30 14,050 0 3,561 54 53 Other 6,233 4,693 1,541 4,331 518 960 220 127 76 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U. S. Branches and Agencies All 4.30 Continued All states2 New York Other states2 IItteemm Total Branches Agencies Branches Agencies ff tt oo CC oo rr aa tt nn ll aa ii ii ll -- aa 33 ,, bb II rr llll aa ii nn nn cc oo hh iiss ee ,, ss Branches Agencies 54 Total liabilities'* 182,316 127,155 55,161 111,820 17,326 34,865 7,110 7,967 3,227 55 Total deposits and credit balances 62,659 57,953 4,706 50.873 3,540 875 1,169 5,862 340 56 Individuals, partnerships, and corporations 30,299 29,303 996 22,596 177 609 976 5,686 256 57 U.S. addressees (domicile) 27,019 26,915 104 20,423 62 42 832 5,645 15 58 Non-U.S. addressees (domicile) 3,280 2,388 893 2,173 115 567 144 41 241 59 U.S. government, states, and political subdivisions in United States 140 139 0 46 0 0 1 93 0 60 All other 32,220 28,511 3,710 28,231 3,363 266 193 83 85 61 Foreign governments and official institutions 2,254 2,018 237 1,961 44 168 33 24 26 62 Commercial banks in United States 21,043 18,271 2,773 18,119 2,766 8 125 26 0 63 U.S. branches and agencies of other foreign banks 1,885 1,421 464 1,316 459 5 93 12 0 64 Other commercial banks in United States 19,159 16,850 2,309 16,803 2,307 3 32 14 0 65 Banks in foreign countries 2,410 2,134 276 2,106 215 60 6 21 4 66 Foreign branches of U.S. banks 171 153 18 151 18 2 0 0 0 67 Other banks in foreign countries 2,240 1,981 258 1,955 197 58 6 21 4 68 Certified and officers' checks, travelers checks, and letters of credit sold for cash 6,512 6,088 424 6,046 338 31 29 12 55 69 Demand deposits 25,238 24,711 527 24,483 339 86 125 98 107 70 Individuals, partnerships, and corporations 1,589 1,541 48 1,379 0 28 90 69 23 71 U.S. addressees (domicile) 949 949 0 807 0 3 74 65 0 72 Non-U.S. addressees (domicile) 640 592 48 571 0 25 16 4 23 73 U.S. government, states, and political subdivisions in United States 28 28 0 28 0 0 0 1 0 74 All other 23,620 23,142 479 23,077 338 58 35 28 84 75 Foreign governments and official institutions 338 292 45 288 0 20 2 3 25 76 Commercial banks in United States 15,847 15,846 1 1155,,883311 0 2 1 13 0 77 U.S. branches and agencies of other foreign banks 610 610 0 609 0 0 0 0 0 78 Other commercial banks in United States 15,237 15,237 1 15,222 0 2 1 13 0 79 Banks in foreign countries 924 915 9 911 0 5 3 0 4 80 Certified and officers' checks, travelers checks, and letters of credit sold for cash 6,512 6,088 424 6,046 338 31 29 12 55 81 Time deposits 33,545 32,637 908 25,833 11 724 1,025 5,738 213 82 Individuals, partnerships, and corporations 28,180 27,473 707 20,977 1 531 867 5,591 213 83 U.S. addressees (domicile) 25,746 25,746 0 19,440 0 10 740 5,556 0 84 Non-U.S. addressees (domicile) 2,434 1,727 707 1,537 1 522 127 35 213 85 U.S. government, states, and political subdivisions in United States 111 111 0 18 0 0 1 92 0 86 All other 5,254 5,054 201 4,839 10 193 158 55 0 87 Foreign governments and official institutions 1,867 1,723 144 1,671 0 144 32 21 0 88 Commercial banks in United States 2,175 2,175 0 22,,003377 0 0 124 13 0 89 U.S. branches and agencies of other foreign banks 811 811 0 707 0 0 93 12 0 90 Other commercial banks in United States 1,364 1,364 0 1,331 0 0 31 2 0 91 Banks in foreign countries 1,212 1,156 56 1,131 10 48 2 21 0 92 Savings deposits 263 241 22 193 0 21 19 26 4 93 Individuals, partnerships, and corporations 262 240 22 191 0 21 19 26 4 94 U.S. addressees (domicile) 189 189 0 145 0 3 17 24 0 95 Non-U.S. addressees (domicile) 73 51 22 47 0 18 1 2 4 96 U.S. government, states, and political subdivisions in United States 0 0 0 0 0 0 0 0 0 97 All other 1 1 0 1 0 0 0 0 0 98 Credit balances 3,613 364 3,250 363 3,190 45 0 0 15 99 Individuals, partnerships, and corporations 269 49 220 49 176 29 0 0 15 100 U.S. addressees (domicile) 136 32 105 32 62 28 0 0 15 101 Non-U.S. addressees (domicile) 133 18 115 18 114 1 0 0 0 102 U.S. government, states, and political subdivisions in United States 0 0 0 0 0 0 0 0 0 103 All other 3,344 314 3,030 314 3,014 16 0 0 0 104 Foreign governments and official institutions 49 2 47 2 44 4 0 0 0 105 Commercial banks in United States 3,020 249 22,,777722 249 22,,776666 6 0 0 0 106 U.S. branches and agencies of other foreign banks 464 0 464 0 459 5 0 0 0 107 Other commercial banks in United States 2,556 248 2,308 248 2,307 1 0 0 0 108 Banks in foreign countries 275 64 211 64 205 6 0 0 0 For notes see page A79. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • January 1982 4.30 Continued All states2 New York Other states2 CCaallii-- IItteemm ffoorrnniiaa,, IIlllliinnooiiss,, Total Branches Agencies Branches Agencies ttoottaall33 bbrraanncchheess Branches Agencies 109 Federal funds purchased and sold under agreement to repurchase 11,842 7,028 4,813 6,223 1,330 3,014 599 188 487 By holder 110 Commercial banks in United States 10,133 5,966 4,166 5,214 1,042 2,937 552 182 205 111 Others 1,709 1,602 647 1,009 289 77 47 6 282 By type 111122 One-day maturity or continuing contract 11,283 6,515 4,768 5,774 1,329 2,952 553 188 487 113 Securities sold under agreements to repurchase ... 971 876 95 825 36 58 0 51 0 114 Other 10,312 5,639 4,673 4,949 11,,229933 22,,889944 552 137 487 115 Other securities sold under agreements to repurchase 559 513 45 449 1 61 47 0 0 116 Other liabilities for borrowed money 52,034 23,462 28,572 21,619 2,883 25,373 1,191 625 342 117 Owed to banks 49,166 21,640 27,527 19,932 2,778 24,448 1,139 542 328 118 U.S. addressees (domicile) 45,593 18,748 26,846 17,285 2,429 24,215 938 518 208 119 Non-U.S. addressees (domicile) 3,573 2,892 681 2,647 349 233 201 24 120 120 Owed to others 2,867 1,823 1,045 1,687 106 925 53 83 14 121 U.S. addressees (domicile) 2,026 1,290 736 1,164 60 675 44 83 0 122 Non-U.S. addressees (domicile) 841 532 309 523 45 250 9 0 14 123 All other liabilities 55,781 38,711 17,070 33,106 9,573 5,603 4,150 1,292 2,057 124 Acceptances executed and outstanding 10,633 6,450 4,183 6,146 1,960 2,175 129 175 49 125 Net due to related banking institutions5 40,951 29,019 11,932 24,049 7,339 2,791 3,849 961 1,961 126 Other 4,197 3,243 954 2,910 274 637 172 157 47 MEMO 127 Time deposits of $100,000 or more 32,305 31,423 882 24,691 1 715 11,,000000 55,,669933 206 128 Certificates of deposit (CDs) in denominations of $100,000 or more 28,429 27,664 765 21,208 0 588 780 5,653 200 129 Other 3,876 3,759 117 3,483 1 127 220 40 6 130 Savings deposits authorized for automatic transfer and NOW accounts 21 13 8 4 0 5 3 5 4 131 Money market time certificates of $10,000 and less than $100,000 with original maturities of 26 weeks 146 133 12 87 0 7 20 26 6 132 Time certificates of deposit in denominations of $100,000 or more with remaining maturity of more than 12 months 1,479 1,394 85 1,170 0 100 27 181 1 133 Acceptances refinanced with a U.S.-chartered bank ... 4,569 3,037 1,532 2,702 56 1,471 2 332 6 134 Statutory or regulatory asset pledge requirement 67,764 59,424 8,340 53,807 8,292 66 5,568 31 0 135 Statutory or regulatory asset maintenance requirement 10,919 10,248 670 6,905 91 3 194 3,149 577 136 Commercial letters of credit 9,040 5,726 3,314 5,172 753 2,491 336 211 76 137 Standby letters of credit, total 8,575 6,684 1,891 5,963 412 813 421 276 689 138 U.S. addressees (domicile) 6,502 4,947 1,554 4,485 277 689 243 197 611 139 Non-U.S. addressees (domicile) 22,,007733 1,736 336 1,478 135 124 178 79 78 140 Standby letters of credit conveyed to others through participations (included in total standby letters of credit) 1,903 1,823 80 1,798 30 50 16 10 0 141 Holdings of commercial paper included in total gross loans 649 570 79 560 37 41 11 0 0 142 Holdings of acceptances included in total commercial ana industrial loans 55,,226600 3,511 1,749 3,471 484 1,246 24 16 18 143 Immediately available funds with a maturity greater than one day (included in other liabilities for borrowed money) 33,844 13,088 20,757 11,830 2,354 18,143 971 275 272 144 Gross due from related banking institutions5 64,132 33,768 30,363 27,798 11,680 18,446 1,705 4,230 272 145 U.S. addressees (domicile) 22,798 7,805 14,993 3,582 1,791 13,095 164 4,023 142 146 Branches and agencies in United States 22,493 7,572 14,921 3,363 1,789 13,025 151 4,023 142 147 In the same state as reporter 516 85 431 52 0 419 0 33 12 148 In other states 21,978 7,487 14,490 3,311 11,,778899 12,606 151 3,990 130 149 U.S. banking subsidiaries6 305 233 72 220 11 70 13 0 0 150 Non-U.S. addressees (domicile) 41,333 25,963 15,370 24,215 9,889 5,351 1,541 206 130 151 Head office and non-U.S. branches and agencies.. 39,126 23,968 15,157 22,226 9,759 5,286 1,537 206 113 152 Non-U.S. banking companies and offices 2,208 1,995 213 1,990 130 66 4 1 17 153 Gross due to related banking institutions5 87,091 58,930 28,161 51,552 18,989 7,187 5,554 1,629 2,179 154 U.S. addressees (domicile) 21,999 14,018 7,981 10,131 4,023 3,071 2,718 1,162 894 155 Branches and agencies in United States 21,832 13,902 7,930 10,026 4,006 3,057 2,710 1,160 872 156 In the same state as reporter 226 89 137 58 0 137 0 31 0 157 In other states 21,606 13,813 7,792 9,969 4,006 2,921 22,,771100 1,128 872 158 U.S. banking subsidiaries6 167 116 51 104 16 13 88 3 22 159 Non-U.S. addressees (domicile) 65,092 44,912 20,180 41,421 14,966 4,116 2,836 467 1,285 160 Head office and non-U.S. branches and agencies.. 62,973 42,971 20,002 39,550 14,874 4,044 2,797 467 1,241 161 Non-U.S. banking companies and offices 2,119 1,941 179 1,871 92 73 39 0 45 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U. S. Branches and Agencies A79 4.30 Continued All states2 New York CCaallii-- IIlllliinnooiiss,, Other states3 IItteemm Total Branches Agencies Branches Agencies ff tt oo oo rr tt nn aa ii ll aa 33 ,, bbrraanncchheess Branches Agencies Average, for 30 calendar days (or calendar month) ending with report date 162 Total assets 178,223 123,107 55,116 108,142 18,456 33,729 7,049 7,670 3,178 163 Cash and due from depository institutions 3300,,221122 2266,,998811 33,,223311 2266,,227766 2,907 258 524 153 95 164 Federal funds sold and securities purchased under agreements to resell 6,135 4,325 1,810 4,107 1,374 430 170 43 12 165 Total loans 96,620 69,567 27,053 6600,,114422 8,411 15,939 5,629 3,612 2,888 166 Loans to banks in foreign countries 11,456 9,341 2,115 88,,888877 797 1,093 424 28 226 167 Total deposits and credit balances 57,433 53,389 4,044 46,619 2,853 904 1,102 5,624 330 168 Time CDs in denominations of $100,000 or more 2277,,888888 27,113 775 20,931 0 591 745 5,417 204 169 Federal funds purchased and securities sold under agreements to repurchase 11,252 6,977 4,275 6,131 1,033 2,797 692 143 455 170 Other liabilities for borrowed money 49,958 22,863 27,095 21,089 2,658 24,186 1,174 574 277 171 Number of reports filed7 353 174 179 106 53 99 34 29 32 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, able through the G.ll 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

A80 Federal Reserve Board of Governors PAUL A. VOLCKER, Chairman HENRY C. WALLICH FREDERICK H. SCHULTZ, Vice Chairman J. CHARLES PARTEE OFFICE OF BOARD MEMBERS OFFICE OF STAFF DIRECTOR FOR MONETARY AND FINANCIAL POLICY JOSEPH R. COYNE, Assistant to the Board DONALD J. WINN, Assistant to the Board 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 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. STOCK WELL, 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 *THEODORE E. DOWNING, JR., Assistant Secretary ROBERT M. FISHER, Assistant Director BARBARA R. LOWREY, Assistant Secretary DAVID E. LINDSEY, Assistant Director JAMES MCAFEE, 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 DON E. KLINE, Associate Director WILLIAM TAYLOR, Associate Director JACK M. EGERTSON, Assistant Director ROBERT A. JACOBSEN, 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

A81 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 1TONY J. SALVAGGIO, Acting Staff Director THEODORE E. ALLISON, Staff Director tJoHN M. DENKLER, Staff Director HARRY A. GUINTER, Assistant Director for Contingency EDWARD T. MULRENIN, Assistant Staff Director Planning JOSEPH W. DANIELS, SR., Director of Equal Employment Opportunity DIVISION OF FEDERAL RESERVE BANK OPERATIONS DIVISION OF DATA PROCESSING CLYDE H. FARNSWORTH, JR., Director CHARLES L. HAMPTON, Director LORIN S. MEEDER, Associate Director BRUCE M. BEARDSLEY, Deputy Director WALTER ALTHAUSEN, Assistant Director TUYLESS D. BLACK, Associate Director CHARLES W. BENNETT, Assistant Director GLENN L. CUMMINS, Assistant Director RICHARD B. GREEN, Assistant Director NEAL H. HILLERMAN, Assistant Director EARL G. HAMILTON, Assistant Director C. WILLIAM SCHLEICHER, JR., Assistant Director ELLIOTT C. MCENTEE, Assistant Director ROBERT J. ZEMEL, Assistant Director DAVID L. ROBINSON, Assistant 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. tOn 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

A82 Federal Reserve Bulletin • January 1982 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 JOSEPH E. BURNS, Associate Economist STEPHEN H. AXILROD, Staff Director RICHARD G. DAVIS, Associate Economist MURRAY ALTMANN, Secretary EDWARD C. ETTIN, Associate Economist NORMAND R. V. BERNARD, Assistant Secretary DONALD J. MULLINEAUX, Associate Economist NANCY M. STEELE, Deputy Assistant Secretary MICHAEL J. PRELL, Associate Economist MICHAEL BRADFIELD, General Counsel KARL L. SCHELD, Associate Economist JAMES H. OLTMAN, Deputy General Counsel EDWIN M. TRUMAN, Associate Economist ROBERT E. MANNION, Assistant General Counsel JOSEPH S. ZEISEL, Associate Economist JAMES L. KICHLINE, 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 H. 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 CHARLOTTE H. SCOTT, Charlottesville, Virginia, Chairman MARGARET REILLY-PETRONE, Upper Montclair, New Jersey, Vice Chairman ARTHUR F. BOUTON, Little Rock, Arkansas SHIRLEY T. HOSOI, Los Angeles, California JULIA H. BOYD, Alexandria, Virginia GEORGE S. IRVIN, Denver, Colorado ELLEN BROADMAN, Washington, D.C. HARRY N. JACKSON, Minneapolis, Minnesota GERALD R. CHRISTENSEN, Salt Lake City, Utah F. THOMAS JUSTER, Ann Arbor, Michigan JOSEPH N. CUGINI, Westerly, Rhode Island ROBERT J. MCEWEN, S. J., Chestnut Hill, Massachusetts RICHARD S. D'AGOSTINO, Philadelphia, Pennsylvania STAN L. MULARZ, Chicago, Illinois SUSAN PIERSON DE WITT, Springfield, Illinois WILLIAM J. O'CONNOR, Buffalo, New York JOANNE S. FAULKNER, New Haven, Connecticut WILLARD P. OGBURN, Boston, Massachusetts MEREDITH FERNSTROM, New York, New York JANET J. RATHE, Portland, Oregon ALLEN J. FISHBEIN, Washington, D.C. RENE REIXACH, Rochester, New York E. C. A. FORSBERG, SR., Atlanta, Georgia PETER D. SCHELLIE, Washington, D.C. LUTHER R. GATLING, New York, New York NANCY Z. SPILLMAN, Los Angeles, California VERNARD W. HENLEY, Richmond, Virginia CLINTON WARNE, Cleveland, Ohio JUAN J. HINOJOSA, McAllen, Texas FREDERICK T. WEIMER, Chicago, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 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 Jean A. Crockett Edward G. Boehne Robert M. Landis, Esq. Richard L. Smoot CLEVELAND* 44101 J. L. Jackson Willis J. Winn William H. Knoell Walter H. MacDonald Cincinnati 45201 Clifford R. Meyer Robert E. Showalter Pittsburgh 15230 Milton G. Hulme, Jr. Harold J. Swart RICHMOND* 23219 Steven Muller Robert P. Black Paul E. Reichardt Jimmie R. Monhollon Baltimore 21203 Edward H. Covell 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 William H. Martin, III Hiram J. Honea Jacksonville 32231 Copeland D. Newbern Charles D. East Miami 33152 David A. Rush F. J. Craven, Jr. Nashville 37203 Cecelia Adkins Jeffrey J. Wells New Orleans 70161 Leslie B. Lampton James D. Hawkins CHICAGO* 60690 John Sagan Silas Keehn Stanton R. Cook Daniel M. Doyle Detroit 48231 Russell G. Mawby William C. Conrad ST. LOUIS 63166 Armand C. Stalnaker Lawrence K. Roos Hadley Griffin Donald W. Moriarty, Jr. Little Rock 72203 vacant John F. Breen Louisville 40232 vacant Donald L. Henry Memphis 38101 vacant Robert E. Matthews MINNEAPOLIS 55480 William G. Phillips E. Gerald Corrigan John B. Davis, Jr. Thomas E. Gainor Helena 59601 Ernest B. Corrick Betty J. Lindstrom KANSAS CITY 64198 Paul H. Henson Roger Guffey Doris M. Drury Henry R. Czerwinski Denver 80217 Caleb B. Hurtt Wayne W. Martin Oklahoma City 73125 Christine H. Anthony William G. Evans Omaha 68102 Robert G. Lueder Robert D. Hamilton DALLAS 75222 Gerald D. Hines Robert H. Boykin John V. James William H. Wallace El Paso 79999 vacant Joel L. Koonce, Jr. Houston 77001 vacant J. Z. Rowe San Antonio 78295 vacant Thomas H. Robertson SAN FRANCISCO 94120 Caroline L. Ahmanson John J. Balles Alan C. Furth John B. Williams Los Angeles 90051 Bruce M. Schwaegler Richard C. Dunn Portland 97208 John C. Hampton Angelo S. Carella Salt Lake City 84130 Wendell J. Ashton A. Grant Holman Seattle 98124 John W. Ellis 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

A84 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 volume $1.00; 10 or more to one address, $.85 TIONS. 1974. 125 pp. each. ANNUAL REPORT. OPEN MARKET POLICIES AND OPERATING PROCEDURES— FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or STAFF STUDIES. 1971. 218 pp. $2.00 each; 10 or more to $2.00 each in the United States, its possessions, Canada, one address, $1.75 each. and Mexico; 10 or more of same issue to one address, REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHA- $18.00 per year or $1.75 each. Elsewhere, $24.00 per NISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. year or $2.50 each. 1972. 220 pp. Each volume $3.00; 10 or more to one BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint address, $2.50 each. of Part I only) 1976. 682 pp. $5.00. THE ECONOMETRICS OF PRICE DETERMINATION CONFER- BANKING AND MONETARY STATISTICS, 1941-1970. 1976. ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 1,168 pp. $15.00. pp. Cloth ed. $5.00 each; 10 or more to one address, ANNUAL STATISTICAL DIGEST $4.50 each. Paper ed. $4.00 each; 10 or more to one 1971-75. 1976. 339 pp. $5.00 per copy. address, $3.60 each. 1972-76. 1977. 377 pp. $10.00 per copy. FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE 1973-77. 1978. 361 pp. $12.00 per copy. FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. 487 1974-78. 1980. 305 pp. $10.00 per copy. pp. $4.00 each; 10 or more to one address, $3.60 each. 1970-79. 1981. 587 pp. $20.00 per copy. LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS. 1980. 1981. 241 pp. $10.00 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. BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. 102 INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; pp. $1.00 each; 10 or more to one address, $.85 each. 10 or more to one address, $1.25 each. REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. OF THE U.S. GOVERNMENT SECURITIES MARKET. 1969. $13.50 each. 48 pp. $.25 each; 10 or more to one address, $.20 each. NEW MONETARY CONTROL PROCEDURES: FEDERAL RE- JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOV- SERVE STAFF STUDY, 1981. ERNMENT SECURITIES MARKET; STAFF STUDIES—PART SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: 1. 1970. 86 pp. $.50 each; 10 or more to one address, $.40 REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL each. PART 2, 1971. 153 pp. and PART 3, 1973. 131 pp. ADJUSTMENT TECHNIQUES. 1981. 55 pp. $2.75 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updat- STAFF STUDIES.- Summaries Only Printed in the ed at least monthly. (Requests must be prepaid). Bulletin Consumer and Community Affairs Handbook. $60.00 per Studies and papers on economic and financial subjects year. that are of general interest. Requests to obtain single copies Monetary Policy and Reserve Requirements Handbook. of the full text or to be added to the mailing list for the series $60.00 per year. may be sent to Publications Services. Securities Credit Transactions Handbook. $60.00 per year. Federal Reserve Regulatory Service. 2 vols. (Contains all TIE-INS BETWEEN THE GRANTING OF CREDIT AND SALES OF three Handbooks plus substantial additional material.) INSURANCE BY BANK HOLDING COMPANIES AND OTHER $175.00 per year. LENDERS, by Robert A. Eisenbeis and Paul R. Schweit- Rates for subscribers outside the United States are as zer. Feb.1979. 75 pp. follows and include additional air mail costs: PERFORMANCE AND CHARACTERISTICS OF EDGE CORPORA- Federal Reserve Regulatory Service, $225.00 per year. TIONS, by James V. Houpt. Feb. 1981. 56 pp. Each Handbook, $75.00 per year. BANKING STRUCTURE AND PERFORMANCE AT THE STATE WELCOME TO THE FEDERAL RESERVE, December 1980. LEVEL DURING THE 1970s, by Stephen A. Rhoades. Mar. 1981. 26 pp. FEDERAL RESERVE DECISIONS ON BANK MERGERS AND AC- QUISITIONS DURING THE 1970s, by Stephen A. Rhoades. CONSUMER EDUCATION PAMPHLETS Aug. 1981. 16 pp. Short pamphlets suitable for classroom use. Multiple THE USE OF CONTINGENCIES AND COMMITMENTS BY COMcopies available without charge. MERCIAL BANKS, by Benjamin Wolkowitz et al. Jan. 1982. 186 pp. Alice in Debitland MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE ON Consumer Handbook to Credit Protection Laws COMPETITION AND PERFORMANCE IN BANKING MAR- Dealing with Inflation: Obstacles and Opportunities KETS, by Timothy J. Curry and John T. Rose. Jan. 1982. The Equal Credit Opportunity Act and . . . Age 9 pp. The Equal Credit Opportunity Act and . . . Credit Rights in Housing The Equal Credit Opportunity Act and . . . Doctors, Law- REPRINTS yers, Small Retailers, and Others Who May Provide Most of the articles reprinted do not exceed 12 pages. Incidental Credit The Equal Credit Opportunity Act and . . . Women Revision of Bank Credit Series. 12/71. Fair Credit Billing Rates on Consumer Installment Loans. 9/73. Federal Reserve Glossary Industrial Electric Power Use. 1/76. Guide to Federal Reserve Regulations Revised Series for Member Bank Deposits and Aggregate How to File A Consumer Credit Complaint Reserves. 4/76. If You Borrow To Buy Stock Federal Reserve Operations in Payment Mechanisms: A If You Use A Credit Card Summary. 6/76. Series on the Structure of the Federal Reserve System The Federal Budget in the 1970's. 9/78. The Board of Governors of the Federal Reserve System Perspectives on Personal Saving. 8/80. The Federal Open Market Committee The Impact of Rising Oil Prices on the Major Foreign Federal Reserve Bank Board of Directors Industrial Countries. 10/80. Federal Reserve Banks Federal Reserve and the Payments System: Upgrading Elec- Monetary Control Act of 1980 tronic Capabilities for the 1980s. 2/81. Truth in Leasing U.S. International Transactions in 1980. 4/81. U.S. Currency Survey of Finance Companies, 1980. 5/81. What Truth in Lending Means to You Bank Lending in Developing Countries. 9/81. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 Index to Statistical Tables References are to pages A3 through A79 alt he the prefix 'A" is omitted in this index ACCEPTANCES, bankers, 10, 25, 27 Demand deposits—Continued Agricultural loans, commercial banks, 18, 19, 20, 26 Subject to reserve requirements, 14 Assets and liabilities (See also Foreigners) Turnover, 12 Banks, by classes, 17, 18-21, 70-75 Depository institutions Domestic finance companies, 39 Reserve requirements, 8 Federal Reserve Banks, 11 Reserves, 3, 4, 5, 14 Foreign banks, U.S. branches and agencies, 22, 76 Deposits (See also specific types) Nonfinancial corporations, 38 Banks, by classes, 3, 17, 18-21, 29, 71, 73, 75 Savings institutions, 29 Federal Reserve Banks, 4, 11 Automobiles Subject to reserve requirements, 14 Consumer installment credit, 42, 43 Turnover, 12 Production, 48, 49 Discount rates at Reserve Banks and at foreign central banks (See Interest rates) BANKERS balances, 17, 18-20, 70, 72, 74 Discounts and advances by Reserve Banks (See Loans) (See also Foreigners) Dividends, corporate, 37 Banks for Cooperatives, 35 Bonds (See also U.S. government securities) EMPLOYMENT, 46, 47 New issues, 36 Eurodollars, 27 Yields, 3 Branch banks, 15, 21, 22, 56, 76 Business activity, nonfinancial, 46 FARM mortgage loans, 41 Business expenditures on new plant and equipment, 38 Federal agency obligations, 4, 10, 11, 12, 34 Business loans (See Commercial and industrial loans) Federal credit agencies, 35 Federal finance CAPACITY utilization, 46 Debt subject to statutory limitation and types and Capital accounts ownership of gross debt, 32 Banks, by classes, 17, 71, 73, 75 Receipts and outlays, 31 Federal Reserve Banks, 11 Treasury operating balance, 30 Central banks, 68 Federal Financing Bank, 30, 35 Certificates of deposit, 21, 27 Federal funds, 3, 6, 18, 19, 20, 27, 30 Commercial and industrial loans Federal Home Loan Banks, 35 Commercial banks, 15, 17, 22, 26 Federal Home Loan Mortgage Corporation, 35, 40, 41 Weekly reporting banks, 18-22, 23 Federal Housing Administration, 35, 40, 41 Commercial banks Federal Intermediate Credit Banks, 35 Assets and liabilities, 3, 15, 17, 18-21, 70-75 Federal Land Banks, 35, 41 Business loans, 26 Federal National Mortgage Association, 35, 40, 41 Commercial and industrial loans, 15, 17, 22, 23, 26 Federal Reserve Banks Consumer loans held, by type, 42, 43 Condition statement, 11 Loans sold outright, 21 Discount rates (See Interest rates) Nondeposit funds, 16 U.S. government securities held, 4, 11, 12, 32, 33 Number by classes, 17, 71, 73, 75 Federal Reserve credit, 4, 5, 11, 12 Real estate mortgages held, by holder and property, 41 Federal Reserve notes, 11 Commercial paper, 3, 25, 27, 39 Federally sponsored credit agencies, 35 Condition statements (See Assets and liabilities) Finance companies Construction, 46, 50 Assets and liabilities, 39 Consumer installment credit, 42, 43 Business credit, 39 Consumer prices, 46, 51 Loans, 18, 19, 20, 42, 43 Consumption expenditures, 52, 53 Paper, 25, 27 Corporations Financial institutions, loans to, 18, 19, 20 Profits and their distribution, 37 Float, 4 Security issues, 36, 65 Flow of funds, 44, 45 Cost of living (See Consumer prices) Foreign banks, assets and liabilities of U.S. branches and Credit unions, 29, 42, 43 agencies, 22, 76 Currency and coin, 5, 17, 70, 72, 74 Foreign currency operations, 11 Currency in circulation, 4, 13 Foreign deposits in U.S. banks, 4, 11, 18, 19, 20 Customer credit, stock market, 28 Foreign exchange rates, 68 Foreign trade, 55 DEBITS to deposit accounts, 12 Foreigners Debt (See specific types of debt or securities) Claims on, 56, 58, 61, 62, 63, 67 Demand deposits Liabilities to, 21, 56-60, 64-66 Adjusted, commercial banks, 12, 14 Banks, by classes, 17, 18-21, 71, 73, 75 GOLD Ownership by individuals, partnerships, and Certificates, 11 corporations, 24 Stock, 4, 55 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 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, 70, 72, 74 Insured commercial banks, 70-75 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 central banks and 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 United States, 56-67 Savings deposits (See Time deposits) International organizations, 56-61, 64-67 Savings institutions (See Thrift institutions) Inventories, 52 Securities (See also U.S. government securities) Investment companies, issues and assets, 37 Federal and federally sponsored credit agencies, 35 Investments (See also specific types) Foreign transactions, 65 Banks, by classes, 17, 29 New issues, 36 Commercial banks, 3, 15, 17, 18-20, 70, 72, 74 Prices, 28 Federal Reserve Banks, 11, 12 Special drawing rights, 4, 11, 54, 55 Savings institutions, 29, 41 State and local governments Deposits, 18, 19, 20 LABOR force, 47 Holdings of U.S. government securities, 32, 33 Life insurance companies (See Insurance companies) New security issues, 36 Loans (See also specific types) Ownership of securities issued by, 18, 19, 20, 29 Banks, by classes, 17, 18-21 Yields of securities, 3 Commercial banks, 3, 15, 17, 18-21, 22, 26, 70, 72, 74 Stock market, 28 Federal Reserve Banks, 3, 4, 5, 7, 11, 12 Stocks (See also Securities) Insured or guaranteed by United States, 40, 41 New issues, 36 Savings institutions, 29, 41 Prices, 28 MANUFACTURING TAX receipts, federal, 31 Capacity utilization, 46 Thrift institutions, selected assets and liabilities, 29 Production, 46, 49 Time deposits, 3, 9, 12, 14, 17, 18-21, 71, 73, 75 Margin requirements, 28 Trade, foreign, 55 Member banks Treasury currency, Treasury cash, 4 Borrowing at Federal Reserve Banks, 5, 11 Treasury deposits, 4, 11, 30 Federal funds and repurchase agreements, 6 Treasury operating balance, 30 Reserve requirements, 8 Reserves and related items, 14 UNEMPLOYMENT, 47 Mining production, 49 U.S. balance of payments, 54 Mobile home shipments, 50 U.S. government balances Monetary aggregates, 3, 14 Commercial bank holdings, 18, 19, 20 Money and capital market rates (See Interest Member bank holdings, 14 rates) Treasury deposits at Reserve Banks, 4, 11, 30 Money stock measures and components, 3, 13 U.S. government securities Mortgages (See Real estate loans) Bank holdings, 17, 18-20, 32, 33, 70, 72, 74 Mutual funds (See Investment companies) Dealer transactions, positions, and financing, 34 Mutual savings banks, 3, 9, 18-20, 29, 32, 33, 41 Federal Reserve Bank holdings, 4, 11, 12, 32, 33 Foreign and international holdings and transactions, 11, NATIONAL defense outlays, 31 32, 64 National income, 52 Open market transactions, 10 Outstanding, by type and ownership, 32, 33 OPEN market transactions, 10 Rates, 3, 27 Savings institutions, 29 PERSONAL income, 53 Utilities, production, 49 Prices Consumer and producer, 46, 51 VETERANS Administration, 40, 41 Stock market, 28 Prime rate, commercial banks, 26 WEEKLY reporting banks, 18-23 Production, 46, 48 Wholesale (producer) prices, 46, 51 Profits, corporate, 37 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A88 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories 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