Federal Reserve Bulletin, 1982-02

VOLUME 68 • NUMBER 2 • FEBRUARY 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 John M. Denkler • Janet O. Hart • James L. Kichline • 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 77 DEVELOPMENTS IN BANKING 103 ANNOUNCEMENTS STRUCTURE, 1970-81 Gross earnings of Federal Reserve Banks During the last decade the structure of the amounted to $15.5 billion in 1981, more commercial banking industry continued to than $14 billion of which was paid to the adjust to changes in legislation and to the U.S. Treasury. evolution of the financial system. Amendments to Regulations G, T, and U to simplify and clarify margin requirement 86 INDUSTRIAL PRODUCTION rules. (See Legal Developments.) Output declined about 3.0 percent in Janu- Meeting of Consumer Advisory Council. ary. Changes in Board staff. Admission of six state banks to membership 88 STATEMENTS TO CONGRESS in the Federal Reserve System. Paul A. Volcker, Chairman, Board of Governors, says that sustainable growth cannot 105 RECORD OF POLICY ACTIONS OF THE be built on inflationary policies and that the FEDERAL OPEN MARKET COMMITTEE progress that is beginning on the inflation At its meeting on December 21-22, 1981, front will help lay the base for recovery and the Committee decided to seek behavior of a better economic performance over the reserve aggregates associated with growth long run, before the Joint Economic Comof Ml and M2 from November 1981 to mittee of the Congress, January 26, 1982. March 1982 at annual rates of around 4 to 5 percent and around 9 to 10 percent respec- 91 J. Charles Partee, Member, Board of Govtively. In setting the objective for Ml, the ernors, discusses proposals to expand bank Committee took account of the relatively participation in securities markets by allowrapid growth that had already taken place ing banks to underwrite municipal revenue through the first part of December. It also bonds and to offer mutual funds, before the recognized that interpretation of actual Subcommittee on Securities of the Senate money growth might need to take account Committee on Banking, Housing, and Urof the significance of fluctuations in NOW ban Affairs, February 4, 1982. accounts, which recently had been growing relatively rapidly. The intermeeting range 96 Chairman Volcker underscores and amplifor the federal funds rate that provides a fies some of the points contained in the mechanism for initiating consultation of the official report from the Board in accordance Committee was set at 10 to 14 percent. with the Humphrey-Hawkins Act, before the House Committee on Banking, Finance ill LEGAL DEVELOPMENTS and Urban Affairs, February 10, 1982, and before the Senate Committee on Banking, Amendments to Regulations C, M, Z, Q, G, Housing, and Urban Affairs, February 11, T, and U; various bank holding company 1982. and bank merger orders; and pending cases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Ai FINANCIAL AND BUSINESS STATISTICS All FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS A3 Domestic Financial Statistics A46 Domestic Nonfinancial Statistics A73 FEDERAL RESERVE BANKS, A54 International Statistics BRANCHES, AND OFFICES A69 GUIDE TO TABULAR PRESENTATION, A74 FEDERAL RESERVE BOARD STATISTICAL RELEASES, AND SPECIAL PUBLICATIONS TABLES A76 INDEX TO STATISTICAL TABLES A70 BOARD OF GOVERNORS AND STAFF A78 MAP OF FEDERAL RESERVE SYSTEM A79 PUBLICATIONS OF INTEREST Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Developments in Banking Structure, 1970-81 Donald T. Savage of the Board's Division of 1981. This article discusses only the portions of Research and Statistics prepared this article, those laws that affect current or future trends in with research assistance provided by Patricia banking structure. Lapczynski and Loree Bernard. Since 1970, a number of economic and legislative Federal Legislation changes have had significant impacts on the structure of the American banking system. Be- The 1970 amendments to the Bank Holding Comcause of the accelerating evolution of the finan- pany Act of 1956 and the Depository Institutions cial system, even greater changes in the structure Deregulation and Monetary Control Act of 1980 of the commercial banking system can be expect- were the major federal statutes affecting banking ed in the future. structure. Other significant legislation is dis- Concern with the structure of commercial cussed after consideration of these laws. banking derives mainly from the objective of The 1970 amendments to the Bank Holding maintaining a financial system that will provide Company Act extended the coverage of the act high quality services at competitive prices. The to the 1,352 one-bank holding companies operatperformance of the industry, in terms of serv- ing at the time the amendments were passed. ices, prices, and profits, depends on its struc- Before that time, a one-bank holding company ture. Other things being equal, an industry struc- could engage in any line of business. Although tured toward monopoly would be expected to insurance and real estate were the most common provide fewer services, charge higher prices, and nonbank activities, subsidiaries of one-bank earn a higher rate of profit than an industry with holding companies were involved in a variety of many competitive firms each of which has a businesses, ranging from agriculture to manufacsmall share of the market. Thus, structural turing and service industries. changes within the banking industry are impor- The 1970 amendments provided the mechatant because of their implications for the future nism to determine the nonbanking activities perperformance of the industry. missible for bank holding companies. The Board The first section of this review describes the of Governors of the Federal Reserve System was major economic and legislative forces transform- given the power to permit bank holding compaing the structure of the commercial banking nies to engage in those nonbanking activities that industry. The next section examines specific were "determined to be so closely related to components of banking structure—chartering, banking. .. as to be a proper incident thereto" bank holding companies, and branch banking. and that "can reasonably be expected to produce Finally, statistics on the concentration of com- benefits to the public, such as greater convemercial banking are presented. nience, increased competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts of inter- LEGISLATION ON BANKING STRUCTURE est, or unsound banking practices." One-bank The federal government and many of the states holding companies were given until Decemenacted banking legislation between 1970 and ber 31, 1980, to divest either their subsidiary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 Federal Reserve Bulletin • February 1982 bank or those impermissible activities that were incurring substantially increased interest costs. not conducted by the company's subsidiaries Studies that demonstrate that small banks can before and continuously since June 30, 1968. compete with much larger banks have been con- The issue of appropriate nonbanking activities ducted in an environment of effective ceilings on arose again in the late 1970s as nonbanking explicit interest payments under Regulation Q. financial firms began offering new financial serv- The eventual removal of rate ceilings could ices that could not be offered by banks. The change those results, although the bulk of interdesire of some banks to establish money market est-sensitive deposits in smaller banking markets mutual funds reopened the nonbanking activities may already have been transferred to money debate. Because shares in money market mutual market mutual funds and other investments funds are considered to be securities for regula- yielding market returns. tory purposes, the controversy extends to a Whereas the major legislative changes of the general reexamination of the separation of com- past decade have had some impact on the strucmercial banking and securities underwriting. The ture of the commercial banking system, future legislative response to bank requests for powers changes could be even more important. The equal to those of their nonbank competitors expansion in the number of suppliers of commercould change not only the process by which the cial bank services and the phaseout of Regulation nonbanking activities of bank holding companies Q could have a major restructuring effect. are evaluated but also the traditional separation In addition to these key legislative actions, of commercial and investment banking. other statutes also have important implications The Depository Institutions Deregulation and for banking structure. The International Banking Monetary Control Act, the second major federal Act of 1978 (IBA) provided for federal, as well as statute since 1970 affecting banking structure, state, chartering of foreign bank offices and limitlegalized the provision to consumers of third- ed the future interstate expansion of domestic party payment services by thrift institutions in all deposit-taking activities of foreign banks in order states. The nationwide authorization of negotia- to make their powers more comparable to those ble order of withdrawal (NOW) accounts, remote of domestic banks. The IB A subjected U.S. service units, and share draft accounts ended the agencies and branches of foreign banks with exclusive role of commercial banks in the provi- worldwide assets in excess of $1 billion to federal sion of payments services. Legislation proposed reserve requirements and interest rate limitations in the Congress in 1981, but not enacted, would and required U.S. branches of foreign banks that have further reduced the uniqueness of commer- accept retail deposits to obtain insurance from cial banks by expanding the banking powers of the Federal Deposit Insurance Corporation. The thrift institutions to include commercial checking IB A also subjected foreign banks operating U.S. accounts and commercial lending. Thus commer- agencies and branches to the nonbanking provicial banks now face increased competitive pres- sions of the Bank Holding Company Act. Under sures from thrift institutions as well as from the the IBA, the powers of Edge corporations were money market mutual funds and other less regu- expanded to allow them to compete more effeclated providers of financial services. tively with U.S. agencies and branches of foreign The gradual elimination of the ceilings on banks and foreign banks were, for the first time, deposit interest rates (Regulation Q) mandated permitted to own Edge corporations. The IBA by the 1980 legislation also raises questions also called for several reports to Congress, inabout the future structure of the banking indus- cluding a presidential study of the current reletry, particularly whether small banks and thrift vance of existing restraints on interstate banking. institutions can compete effectively for deposits The latter study, sent to the Congress in early against larger banks. Even if the larger banks 1981, recommended a phased reduction of curwere not permitted to expand geographically, rent restrictions on geographic expansion by they might be able to attract funds out of small banking organizations, immediate provision for banking markets by paying very high interest the interstate acquisition of large failing banks, rates. Payment of such high interest rates would and a liberalization of rules governing deployresult in small institutions either losing funds or ment of electronic fund transfer (EFT) facilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Developments in Banking Structure, 1970-81 79 Other federal banking legislation has less ex- branching within the county of the bank's home tensive effects on the structure of the commercial office in 1973 and allowed statewide branching banking industry. The Community Reinvestment by merger in 1979. Statewide branching was Act of 1977 required the federal financial regula- authorized in Ohio in 1979, but the law does not tory agencies to assess the extent to which become effective until 1989; in the interim, the institutions were meeting the credit needs of countywide branching limit was expanded to an their entire community and to take these assess- adjacent-county branching limit. ments into account in decisions on applications Other unit banking states, while continuing to for mergers, branches, bank holding company restrict branching in the full sense of the term, acquisitions of banks, and other structural have authorized various detached or drive-in changes. The Change in Bank Control Act (title facilities. In most cases, the services these facili- VI of the Financial Institutions Regulatory and ties can offer and/or their distance from the Interest Rate Control Act of 1978) gave the bank's main office are restricted. For example, federal banking agencies power to approve or Texas allows a drive-in facility located between disapprove proposed changes of control of banks 500 and 2,000 feet from the main office and and bank holding companies. Agency decisions permits off-premises automated teller machines. are to be based on competitive effects, the finan- State legislation on bank holding companies is cial condition of those seeking to obtain control, less easily categorized than branching legislation and the experience, competence, and integrity of because many states have adopted unique holdthe bank's proposed new management. ing company laws. Some states permit expansion, but restrict the share of total state deposits that can be held by any one holding company. State Legislation Iowa, for example, has an 8 percent limit on the percentage of total state deposits that can be held Several states liberalized their branching laws by any one bank holding company. Illinois limits during the period as the slow drift toward more the expansion of bank holding companies to extensive branching continued. Three unit bank- subdivisions of the state, rather than allowing ing states authorized limited branching. In 1972, expansion throughout the state. Iowa permitted banks to establish branches in Banks owned by out-of-state bank holding the same county as their home office and in companies continue to operate in several states adjacent counties. The statute included a home under the grandfather provisions of the Bank office protection clause; a home office protection Holding Company Act of 1956, but only two clause prohibits branching into a town or city if states have provisions for current acquisitions of another bank has its home office in that town or banks by out-of-state holding companies. Iowa city. Arkansas liberalized its laws in 1973 to permits expansion by the one out-of-state holdallow countywide branching with home office ing company that owned subsidiaries in the state protection. In 1980, Minnesota allowed the up- at the time the law was enacted. Maine permits grading of two previously permitted limited ser- the acquisition of banks in that state by holding vice offices to full service branches. companies headquartered in states extending re- Statewide branching was permitted in New ciprocal acquisition rights to Maine bank holding Jersey (1973), New York (1977), and New Hamp- companies. Similar laws have been considered, shire (1979). All three states included home office but not enacted, in other states. South Dakota in protection features in their laws, although the 1980 and Delaware in 1981 enacted laws allowing New Jersey and New Hampshire laws gradually out-of-state holding companies to form specialreduced the maximum size of cities subject to purpose bank subsidiaries. protection. In 1978, Virginia, which had state- The net effect of changes in state branching wide branching by merger, liberalized its law and bank holding company laws has been that with respect to de novo branching and allowed Kansas, Nebraska, Oklahoma, and West Virginbank holding companies to merge their affiliates ia are now the only states with both unit banking and to continue branching from the former home laws and no significant multibank holding comoffices of the affiliates. Florida introduced pany activity. Illinois, previously in this group, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 Federal Reserve Bulletin • February 1982 enacted a multibank holding company law in debit card systems would be another step toward 1981, and legislation that would allow multibank full interstate banking. holding companies in Nebraska is under judicial review. States have been slow to lower the barriers to STRUCTURAL CHANGES branching, but other developments have tended IN COMMERCIAL BANKING to reduce the importance of those barriers. Free from branching restraints, the nonbank subsid- In this examination of various aspects of struciaries of bank holding companies expanded on a tural change in commercial banking, major emmultistate basis. Although unable to accept de- phasis is given to entry and exit, the bank holding posits, offices of consumer finance companies company, and branch banking. and mortgage banking companies owned by bank holding companies have allowed the parent organization to enter many local markets, in some Entry and Exit cases on a nationwide basis. Loan production offices were established by major banks in com- From 1969 to 1980, the number of commercial mercial centers outside the home state of the banks, whether independent or units in a bank bank in order to service customers with large holding company, grew from 13,679 to 14,836 commercial loans. Edge Act subsidiaries of (table 1). The number of new banks organized banks were permitted to branch interstate to per year averaged more than 240 with the highest meet the foreign trade financing needs of their numbers in 1973 and 1974. Only in 1969 and 1979 customers. did the number of exits from the industry by The development of EFT systems is also re- merger and failure exceed the number of new ducing the significance of barriers to branch banks formed, although the level of net new banking. Debit card systems give customers ac- entry trended downward from its peak in 1974. cess to their bank balances at terminals located When each bank holding company group or off the premises of the bank. As groups of banks independent bank is counted as one organizapermit customers of each participating bank to tion, the number of banking organizations deuse machines owned by the others in the group, clined slightly over the period for which compathe consumer will be able to withdraw funds rable data were available (table 1). Thus, even from his checking account at more locations. An though many bank mergers and bank holding eventual nationwide expansion of these shared company acquisitions took place during the dec- 1. Changes in number of commercial banks in the United States, 1969-80 Item 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 Number of banks, beginning of period 13,679 13,662 13,688 13,786 13,930 14,174 14,459 14,631 14,672 14,704 14,712 14,708 New banks organized 134 185 201 265 344 405 275 190 200 180 237 266 Reopenings 1 1 3 Mergers, consolidations, and absorptions Banks converted into branches -128 -127 -83 -106 -87 -105 -82 -128 -159 -154 -217 -117 Other -18 -23 -13 -10 -10 -13 -13 -13 -2 -16 -16 -18 Suspensions -4 -1 -4 -2 -3 -3 -3 Voluntary liquidations -1 -8 -3 -2 -2 -2 Other changes -1 -1 -3 -8 -6 -7 -2 -6 Number of banks, end of period 13,662 13,688 13,786 13,930 14,174 14,459 14,631 14,672 14,704 14,712 14,708 14,836 Net increase or decrease -17 26 98 144 244 285 172 41 32 8 -4 128 Number of banking organizations, end of year1 n.a. n.a. n.a. n.a. 12,606 12,619 12,663 12,682 12,717 12,719 12,785 12,572 Net increase or decrease n.a. n.a. n.a. n.a. n.a. 13 44 19 35 2 66 -213 1. Companies that are subsidiaries of other bank holding companies SOURCE. Annual Statistical Digest, 1970-1979 and 1980 (Board of are eliminated. Governors of the Federal Reserve System, 1981). n.a. Not available on basis of holding company group. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Developments in Banking Structure, 1970-81 81 ade, new entries have been almost numerous When duplications caused by multitiered bank enough to maintain a constant number of banking holding companies are eliminated, the number of organizations. multibank holding companies increased from 86 in 1969 to 361 at the end of 1980. The total number of banks controlled by multibank holding Bank Holding Companies companies increased from 723 in 1969 to 2,426 in 1980. This increase in the number of subsidiary Over the period, the bank holding company banks was concentrated in a relatively small gradually became the dominant form of banking number of unit banking or limited branching organization. By the end of 1980, 74.1 percent of states. More than two-thirds of the increase was domestic commercial banking assets were held accounted for by Texas, Florida, Missouri, by subsidiary banks of bank holding companies. Michigan, Ohio, Colorado, Wisconsin, and Ala- Multibank holding companies held 35.7 percent bama. of these assets (an increase from 19.0 percent at During the 1970s, 363 de novo banks were the end of 1969) and one-bank holding companies organized by bank holding companies. The reheld 38.4 percent. maining growth in the number of subsidiary Percent of commercial banking deposits held by multibank holding companies f 15.0 Washington 54.9 36.3 Montana North Dakota 59.0 Minnesota 44.3 50.5 South Dakota Wisconsin 51.3 71.5 cn Michigan Wyoming 13.6 N 4 ev 7 a .5 d a Nebraska ' 0.9 1 f 1.3 1 I O 5 h 8 i . o 2 44.4 N.J. 66.1 Illinois I Indiana! —0 Delaware Colorado r 55.0 ^ 9.5 District of •J 9.5 Virginia Columbia il 1 if 2 o .8 r nia Mi 6 s 7 so .0 u ri Kentucky 7 3.3 33.5 Maryland North Carolina 27.3 1.2 Arizona Oklahoma South .Carolina 47.0 New Mexico 58.7 1 Alabama 0.4 I Louisiana ,67.5\ Florid^ Statewide branching I, I Limited branching I I Unit banking I I 7.8 Alaska 8.1 Hawaii IRlSiS 11191 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Federal Reserve Bulletin • February 1982 banks resulted from the acquisition of existing Even the unit banking states permitted some banks. expansion of banking offices, but most of these The chart shows the percentage of total com- offices were relatively near the bank's home mercial bank domestic deposits held by banks in office, were limited as to functions performed, or multibank holding companies in each state as were EFT facilities classified as branches by well as state branching classifications. Each of state law. Except in the statewide branching the branching categories includes states with states, nearly all branches were located in the widely varying levels of multibank holding com- bank's home office county or in an adjacent pany activity. county. In 1980, there were 2,544 one-bank holding The question of what constitutes a branch companies, an increase of 1,192 since the pas- created controversy and litigation. Legal issues sage of the 1970 amendments to the Bank Hold- arose with respect to regulatory classifications of ing Company Act. In many cases, the one-bank loan production offices and customer-bank comholding company form of organization offers tax munication terminals. Litigation followed rulings benefits to bank stockholders because the two on interstate activities of nonbank subsidiaries of organizations can file a consolidated income tax bank holding companies; the most important return if 80 percent or more of the stock of the case centered on the interstate provision of inbank is owned by the holding company. The vestment advisory and trust services by bank income of the bank is reduced for tax purposes holding company subsidiaries. by the holding company's interest payments on its debt. The one-bank holding company also allows the organization to conduct permissible CONCENTRATION IN nonbank activities within the holding company, COMMERCIAL BANKING but outside the bank. Since the passage of the 1970 amendments, the Overall, during the 1970s, the concentration of Board has approved 22 nonbank activities and banking resources appears to have declined. rejected 13 others that were proposed. Nearly all Banking concentration data for the nation, the of the approved activities were permissible for states, and standard metropolitan statistical arnational banks. From 1971 to 1980, the Federal eas (SMSAs) are presented in this section. Reserve System approved 1,447 applications to engage in these activities. In spite of the large number of approvals, the assets of nonbank National Concentration subsidiaries of bank holding companies are only about 5 percent of the assets of the commercial On the national level, the size distribution of banking system. commercial banks changed substantially, in response primarily to the impact of inflation. The size distributions of banking organizations at Branch Banking year-end 1969 and 1980 are presented in table 2. The data indicate some decline in the concen- As indicated, the trend has been toward more tration of commercial banking on the national liberal branching statutes. Despite the slow re- level in terms of the proportion of domestic moval of branching restraints, the number of deposits held by the 10 largest and 100 largest banks operating branches, as well as the number banking organizations. As of December 31, 1969, of branches, continued to increase. At the end of the 10 largest banking organizations held 20.2 1969, 3,794 commercial banks (27.7 percent of percent, and the 100 largest organizations, 47.3 the total) operated 19,985 branches, an average percent, of domestic deposits. By year-end 1980, of 5.26 branches per branching bank. At the end the share of the 10 largest had declined to 17.9 of 1980, 6,859 commercial banks (46.2 percent of percent and that of the 100 largest had declined the total) operated 38,353 branches, an average to 45.4 percent. of 5.59 branches per branching bank. A trend toward reduced concentration is also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Developments in Banking Structure, 1970-81 83 2. Size distribution of commercial banking organizations, 1969 and 1980 Percent except as noted 1969 1980 Asset size class (millions of dollars) Total U.S. Total U.S. Number of Number of commercial banking commercial banking organizations organizations assets assets 0-5 4,306 2.37 821 .16 5-10 3,317 4.51 1,833 .86 10-25 3,192 9.18 4,210 4.33 25-100 1,539 13.01 4,471 12.83 100-250 317 9.19 758 6.96 250-500 104 7.03 249 5.47 500-1,000 66 8.57 157 6.65 1,000 and over 72 46.16 240 62.75 Totals 12,913 100.00 12,739 100.00 Median size banking organizations (millions of dollars of assets) 7.848 22.517 SOURCE. Consolidated report of condition, December 31, 1969, and December 31, 1980. found when an alternative measure of concentra- for local banking markets; no specific case can tion, the Herfindahl index, is used. The Herfin- be advanced that certain banking services are dahl index declined from 0.0061 at the end of distributed in a statewide market. Although not 1969 to 0.0052 at the end of 1980. supported by consistent empirical evidence, some theories suggest that statewide structure has an impact on competitive conditions in local State Concentration markets. State concentration data for 1960-80 are presented in table 3. The three- and five-firm concentra- Local Banking Markets tion ratios indicate the percentage of total commercial banking deposits in the state held by the For most banking services, especially those prothree and five largest banking organizations. The duced for consumers and small business firms, unweighted average change of the state five-firm the relevant market is a local banking market. concentration ratios for all states over the period For analytical purposes, local banking markets 1970-1980 shows an increase of 0.9 percentage are often approximated by SMS As. point. The largest increases in concentration (in Average concentration ratios for SMSAs in percentage points) took place in Alabama (20.9), 1970 and 1980 according to state branching cate- Maine (14.4), Texas (14.0), and Vermont (12.7); gory are presented in table 4. As indicated, the largest decreases in concentration over the average concentration has declined over the peridecade occurred in Oregon (13.6), Louisiana od in all branching categories, although average (8.3), and Nebraska (7.8). Overall, state concen- concentration ratios tend to be higher in the tration increased in 24 states and the District of SMSAs with statewide branching. The lower Columbia and decreased in 26 states. In a num- concentration ratios in the unit banking states are ber of states, such as Oregon, the decrease in explained, at least in part, by the fact that the concentration appeared to be attributable to the larger banks in the central cities of unit banking growth of branches of foreign banks. SMSAs are not permitted to branch into subur- The significance of state concentration ratios ban areas. is limited because states are not banking mar- An analysis of the six states that liberalized kets. Some banking services, such as large com- branching laws early in the 1970s indicates that, mercial loans, are negotiated on a national basis, in four of the six, state concentration had inand other services, such as small business loans creased by 1980. At the SMSA level, however, and consumer checking accounts, are produced concentration increased in only three of forty- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 Federal Reserve Bulletin • February 1982 five SMSAs (excluding fourteen multistate branching states, the concentration of commer- SMSAs) in the states that liberalized branching cial banking resources in the United States has laws. apparently decreased. This trend toward decon- On net, except for some increase in concentra- centration was evident on the national, as well as tion on the statewide level in the statewide the local, level. 3. State commercial banking concentration, 1960-80 Percent except as noted Change (percentage points) 11996600 11997700 11998800 111999888000 1960-80 1970-80 SSStttaaattteee bbbrrraaannnccchhhiiinnnggg lllaaawww111 3 largest 5 largest 3 largest 5 largest 3 largest 5 largest 3 largest 5 largest 3 largest 5 largest firms firms firms firms firms firms firms firms firms firms Rhode Island 92.8 98.1 86.3 92.4 90.6 96.5 S -2.2 -1.6 4.3 4.1 Nevada 93.5 98.6 86.4 97.5 83.5 96.1 S -10.0 -2.5 -2.9 -1.4 Arizona 95.8 98.3 89.7 96.8 84.8 94.2 S -11.0 -4.1 -4.9 -2.6 Delaware 79.8 92.3 73.1 92.3 74.2 91.6 S -5.6 -.7 1.1 -.7 Hawaii 89.2 97.2 77.2 89.8 78.4 90.8 S -10.8 -6.4 1.2 1.0 District of Columbia 74.0 87.3 70.6 86.1 71.2 87.9 S -2.8 .6 .6 1.8 Idaho 74.5 83.8 78.4 88.0 74.2 86.1 S -.3 2.3 -4.2 -1.9 Alaska 68.2 86.7 69.3 85.5 63.7 79.4 S -4.5 -7.3 -5.6 -6.1 Washington 61.1 73.7 64.1 77.5 63.1 76.4 S 2.0 2.7 -1.0 -1.1 Maine 34.7 49.0 40.8 59.6 48.8 74.0 S 14.1 25.0 8.0 14.4 Utah 65.6 77.8 60.9 73.7 59.6 73.6 S -6.0 -4.2 -1.3 -.1 California 65.7 77.7 60.7 77.0 57.7 73.3 S -8.0 -4.4 -3.0 -3.7 Oregon 86.7 88.8 83.2 86.4 61.5 72.8 S -25.2 -16.0 -21.7 -13.6 North Carolina 46.8 56.9 50.9 67.1 51.0 65.8 S 4.2 8.9 .1 -1.2 Massachusetts 46.6 58.5 48.3 64.1 47.4 65.3 L .8 6.7 -.9 1.2 Vermont 25.6 35.2 38.1 51.1 43.3 63.3 S 17.7 28.6 5.2 12.7 Maryland 42.7 58.3 42.1 61.0 44.9 62.9 S 2.2 4.6 2.8 1.9 South Carolina 42.4 51.5 45.9 58.3 45.4 62.8 S 3.0 11.3 -.5 4.5 Connecticut 42.7 56.5 48.0 61.3 47.1 61.4 S 4.4 4.9 -.9 .1 Minnesota 58.6 63.7 55.0 59.1 53.3 56.9 L -5.3 -6.8 -1.7 -2.2 Colorado 37.9 48.8 35.3 47.3 40.2 56.0 U 2.3 7.2 4.9 8.7 New Mexico 43.0 54.0 45.2 54.2 43.9 54.8 L .9 .8 -1.3 .6 Alabama 31.2 40.6 23.8 32.2 38.2 53.1 L 7.0 12.5 14.4 20.9 Montana 48.9 57.6 49.2 58.4 41.9 51.7 U -7.0 -5.9 -7.3 -6.7 Virginia 20.2 27.7 34.6 50.4 34.5 51.7 S 14.3 24.0 -.1 1.3 Michigan 40.8 50.2 35.4 45.8 36.4 50.2 L -4.4 .0 1.0 4.4 South Dakota 37.5 43.0 43.6 47.7 43.3 49.7 S 5.8 6.7 -.3 2.0 New York 40.0 55.4 40.5 56.4 33.0 49.2 S -7.0 -6.2 -7.5 -7.2 Georgia 40.0 50.9 33.8 43.8 39.8 47.1 L -.2 -3.8 6.0 3.3 North Dakota 46.2 53.8 41.0 50.5 38.5 47.0 U -7.7 -6.8 -2.5 -3.5 Wyoming 35.1 44.3 28.2 36.4 38.7 46.7 U 3.6 2.4 10.5 10,3 New Hampshire 24.3 33.7 34.8 42.8 34.5 46.7 S 10.2 13.0 -.3 3.9 Missouri 26.6 35.8 23.8 31.1 29.5 40.6 u 2.9 4.8 5.7 9.5 Tennessee 28.7 40.9 27.7 40.2 27.5 39.2 L -1.2 -1.7 -.2 -1.0 Illinois 35.5 42.2 33.0 39.4 32.9 38.3 U -2.6 -3.9 -.1 -1.1 Florida 17.9 23.2 19.5 28.0 26.9 36.9 S 9.0 13.7 7.4 8.9 Texas 21.2 27.9 16.0 22.7 25.3 36.7 u 4.1 8.8 9.3 14.0 Ohio 24.2 33.1 23.3 32.9 25.0 36.5 L .8 3.4 1.7 3.6 New Jersey 16.8 23.5 16.8 24.6 24.8 35.8 S 8.0 12.3 8.0 11.2 Mississippi 24.9 28.9 28.1 33.3 27.2 33.9 L 2.3 5.0 -.9 6 Wisconsin 29.8 33.0 30.2 33.9 28.7 33.2 L -1.1 .2 -1.5 -.7 Pennsylvania 27.9 38.8 25.6 36.7 23.2 31.2 L -4.7 -7.6 -2.4 -5.5 Kentucky 27.6 34.1 24.9 32.4 22.8 28.8 L -4.8 -5.3 -2.1 -3.6 Nebraska 31.6 41.4 25.0 34.3 19.4 26.5 U -12.2 -14.9 -5.6 -7.8 Oklahoma 32.6 42.2 23.1 32.6 18.9 26.1 U -13.7 -16.1 -4.2 -6.5 Iowa 14.2 19.8 12.7 17.6 18.6 25.8 L 4.4 6.0 5.9 8.2 Indiana 23.8 29.4 22.8 27.5 17.4 21.3 L -6.4 -8.1 -5.4 -6.2 Louisiana 29.3 38.7 22.0 28.9 14.6 20.5 L -14.7 -18.2 -7.4 -8.4 Arkansas 17.2 23.4 15.6 21.3 13.0 18.1 L -4.2 -5.3 -2.6 -3.2 West Virginia 17.3 22.7 12.9 17.6 8.6 12.1 U -8.7 -10.6 -4.3 -5.5 Kansas 14.3 18.7 10.9 15.4 9.1 12.0 U -5.2 -6.7 -1.8 -3.4 Averages (unweighted)... 43.0 51.9 41.7 51.8 41.6 52.7 -1.4 .8 -.1 .9 1. S Statewide branching; L limited branching; U unit banking. SOURCE. Consolidated report of condition, December 31, 1960, 1970, and 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Developments in Banking Structure, 1970-81 85 4. Average SMSA five-firm concentration ratio, banking remain, some barriers were reduced and 1970 and 1980 new methods were found to lessen the impact of Percent the remaining barriers. The concentration of commercial banking showed some evidence of a Branching category 1970 1980 gradual decline on the national and SMSA levels, Statewide 88.1 82.1 Limited 85.9 83.7 but did not show a similar trend on the state Unit 81.8 76.7 level. SOURCE. Summary of deposits in all commercial and mutual savings By the end of 1980, anticipated changes in the banks, 1970 and 1980 (Federal Deposit Insurance Corporation). financial system suggested an even more rapid evolution of the structure of commercial banking in the future. The removal of deposit rate ceil- * • * ings, the possible extension of commercial banking powers to thrift institutions, and possible During the period 1970-81, the bank holding changes in interstate banking prohibitions, plus company form of organization increased in im- competition from nonbank providers of financial portance and legislation established limitations services, could all be catalysts for extensive on the nonbank activities of bank holding compa- changes in the structure of the commercial banknies. Although many restrictions on branch ing industry. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 Industrial Production Released for publication February 17 winter storms. The output of business equipment, which had declined by an average of 1 Industrial production declined an estimated 3.0 percent in each of the last four months of 1981, percent in January, reflecting continued econom- dropped 2.3 percent in January; all of its major ic weakness as well as sharply curtailed work components weakened further. Output of conschedules resulting from the severe January weather. Industrial output has fallen for six Seasonally adjusted, ratio scale, 1967—100 successive months and is now 9.6 percent below 170 MATERIALS OUTPUT its high in July 1981. The total index for January, at 139.1 percent of the 1967 average, was almost PRODUCTS OUPUT 1 percent below its previous cyclical low in July J 1 I L 1980. Declines in January were again wide- MATERIALS Nondurable spread, with the largest drops occurring in the production of autos, construction supplies, and durable and nondurable goods materials. In market groupings, output of consumer goods fell 3.0 percent further in January. Auto BUSINESS SUPPLIES assemblies, at a seasonally adjusted annual rate of 3.6 million units—the lowest rate in more than two decades—were about 22 percent below the CONSTRUCTION v/ December rate. Output of home goods declined 1967= 2.2 percent, as output of carpeting and furniture - MANUFACTURING Nondurable _ continued to drop. Production of consumer nondurable goods—which through December had V "\ : declined less than 2 percent from its recent Durable _ peak—fell 2.1 percent in January, in part reflect- 1 1 1 1 i i ing substantial disruptions in work schedules, Federal Reserve indexes, seasonally adjusted. Latest figparticularly in the apparel industry, because of ures: January. Auto sales and stocks include imports. Major market groupings 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, GGGrrrooouuupppiiinnnggg 1981 1982 1981 1982 JJJaaannn... 111999888111 tttooo JJJaaannn... Dec." Jan.e Sept. Oct. Nov. Dec. Jan. 111999888222 Total industrial production 143.4 139.1 -1.3 -1.7 -1.8 -2.1 -3.0 -8.1 Products, total 146.0 142.3 -1.0 -1.1 -1.2 -1.1 -2.5 -5.1 Final products 145.8 142.3 -1.0 -.7 -1.2 -.9 -2.4 -3.7 Consumer goods 142.3 138.1 -1.2 -.9 -1.6 -1.3 -3.0 -6.0 Durable 123.7 116.9 -1.5 -2.9 -4.8 -4.6 -5.5 -16.6 Nondurable 149.8 146.6 -1.1 -.2 -.3 -.1 -2.1 -2.0 Business equipment 177.0 172.9 -.9 -1.2 -1.1 -.9 -2.3 -2.7 Defense and space 106.0 106.1 .2 1.5 .6 .9 .1 5.2 Intermediate products 146.9 142.5 -1.4 -2.1 -1.5 -1.5 -3.0 -9.5 Construction supplies 128.2 122.0 -3.0 -3.2 -3.4 -1.8 -4.8 -17.8 Materials 139.3 134.1 -1.7 -2.6 -2.6 -3.7 -3.7 -12.8 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

87 Major industry groupings 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, GGGrrrooouuupppiiinnnggg 1981 1982 1981 1982 JJJaaannn... 111999888111 tttooo JJJaaannn... Dec." Jan.e Sept. Oct. Nov. Dec. Jan. 111999888222 Manufacturing 141.9 137.1 -1.4 -2.1 -1.9 -2.3 -3.4 -9.3 Durable 131.0 126.0 -1.7 -2.2 -2.4 -2.6 -3.8 -10.6 Nondurable 157.6 153.2 -.8 -1.9 -1.4 -1.9 -2.8 -7.5 Mining 142.2 141.7 -.7 .2 -1.1 -1.0 -.4 .9 Utilities 167.5 167.9 -2.4 .2 .5 -.8 .2 .2 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. struction supplies dropped 4.8 percent—partly Production of nondurable goods materials, such because of weather disruptions—and was about as chemicals and textiles, also was curtailed 24 percent below its peak in January 1979. In sharply. Output of energy materials edged up contrast to the widespread declines, production slightly. of defense and space equipment in January was In industry groupings, manufacturing output about unchanged and 5.2 percent above that of a fell 3.4 percent in January and was 9.3 percent year earlier. below its level of a year earlier. Production by Output of materials declined 3.7 percent again durable goods industries dropped 3.8 percent and in January; it has fallen almost 14 percent since that by nondurable goods producers declined 2.8 last July. Production of durable goods materials percent. Mining output was reduced slightly furdropped almost 5 percent last month, as particu- ther. In contrast, utilities production edged up, larly large declines occurred in the output of with residential use increasing while industrial basic metals and parts for consumer durables. demand fell. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 Statements to Congress Statement by Paul A. Volcker, Chairman, Board led to unwanted inventories, sharp reductions in of Governors of the Federal Reserve System, production, and postponement of some capital before the Joint Economic Committee of the spending. U.S. Congress, January 26, 1982. These are elements of a classic recession pattern, and at this point the decline in economic I appreciate the opportunity to appear before you activity has been of proportions comparable to at the start of a new congressional session. We other downturns since World War II. What is will be facing critical decisions on economic different and so distressing is that the recession policy in the weeks and months ahead. Toward has been superimposed on a pattern of sluggishthe middle of next month I will be reporting to ness extending over some years; unemployment the appropriate committees on monetary policy was high to begin with, and now, at 8.9 percent, in more detail, and this morning I will confine my stands very close to its postwar peak. Moreover, statement to more general considerations. we have been left with a legacy of extraordinarily Over the past two years, we have faced up high interest rates and financial pressures, condisquarely to the necessity of reining in the infla- tions fundamentally associated with the years of tion that has come to grip the economy over a inflationary behavior and expectations. long period of time. There are now clear signs of The upward trend in unemployment in recent tangible and potentially sustainable progress to- years and the early onset of a new recession ward that objective. But the economy is also reflect the difficulty both of living with inflacaught up in recession, after several years of tion—and of bringing it to an end. Unsatisfactory unsatisfactory performance. In a real sense, the economic performance, well below our reasonnation is paying the costs of the distortions and able potential, has extended over a number of imbalances in our economy created in large part years. The origins can be traced back at least as by the years of inflationary experience. far as the mid-1960s, when as a nation we failed In approaching these problems, and in consid- to accept the budgetary consequences of spendering monetary, fiscal, and other policies, it ing for a war and for vastly expanded social seems crucially important that we keep firmly in programs at the same time. Once started, the mind the lesson of the 1970s—sustainable inflationary process assumed a momentum of its growth cannot be built on inflationary policies. own, with only short interruptions in earlier More positively stated, the progress we are recessions. At intervals, the massive oil shocks, clearly beginning to see on the inflation front and to a lesser extent worldwide crop shortages, when carried forward will help lay the base for ratcheted up the inflation rate, affected the real recovery and much better economic perform- income of most workers, and led to the need for ance over a long period of time. large adjustments in our industrial structure, As you know, the economy, after a burst of depressing some traditional industries while growth early in 1981, leveled off, and in recent spurring others. months strong recessionary forces have taken Through this period, one aspect of our ecohold. Real consumption expenditures have de- nomic problem became increasingly obvious. clined, in part reflecting an increased saving rate. Inflation came to be viewed as a permanent part A sustained higher rate of saving would, of of the economic landscape, and workers and course, be healthy in a longer-term perspective, businessmen, savers and investors, and borrowand a number of policy measures have been ers and lenders built expectations of continued adopted to strengthen incentives for saving. But inflation into their daily economic decisions. in the short run, declines in consumption have There have been profound effects on financial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 89 markets and interest rates, inhibiting growth and No successful program to restore price stabilinvestment. Higher effective tax rates became a ity can rest on persistently high unemployment drag on the economy, and the interaction of and depressed profitability, any more than we inflation with the tax system tended to reduce can build prosperity on inflation. The obvious business profitability and to divert both business challenge is to shape our policies in a way that and personal planning away from productive can permit and encourage recovery to proceed effort and innovation into more speculative or while maintaining the progress we are seeing purely financial areas. It is worth recalling the toward greater price stability. Some of the culmination of the process in late 1979 and early groundwork has already been laid, or is in proc- 1980 when concern about the inflation and bud- ess. Price expectations have calmed, and some getary outlook brought interest rates to sharply evidence exists that the underlying trend of costs higher levels and incited a speculative outbreak is slowing. in prices of commodities and precious metals, Our current inflation did not originate as a even as prices of long-term securities fell sharp- "wage-push" phenomenon. But in an economy ly. Broadly recognized was that inflation was like ours, with wages and salaries accounting for eroding the foundations of our economy and that two-thirds of all costs, sustaining that progress strong action had to be taken to restore stability. will need to be reflected in moderation in the In the circumstances existing, that job fell growth in nominal wages. The general indexes of largely to the Federal Reserve and monetary worker compensation still show relatively little policy. As you know, we have been pursuing a improvement, and prices of many services with a policy of reducing the pace of monetary expan- high labor content continue to show high rates of sion over a period of time to rates consistent with increase. But we are all aware of recent negotiaprice stability. But monetary restraint, however tions completed or in progress that seem to point necessary, can be a blunt instrument. That is toward significant moderation. particularly true when prolonged experience In many of these instances, to be sure, the with inflation builds in expectations that it will changes reflect the most intense competitive continue, when inflationary momentum is built pressures, and the potential benefits in terms of into cost and pricing behavior, and when im- retaining jobs is clear. Major tests of the changprovements in productivity are low. ing climate still lie ahead; 1982 is a particularly For all its difficulty, monetary restraint must important year for wage bargaining. It seems to be an essential part of any successful effort to me crucially important, not least for the workers damp inflation. Strong upward price pressures directly involved and for those now unemployed, may arise from a variety of sources not directly that this emerging pattern of greater moderation related to monetary conditions—the oil price be extended. The end result of moderating nomishocks are a leading example. But those im- nal wages should be higher real wages for workpulses will persist and spread only if they are ers generally, for such moderation can speed and accommodated by growth in money. And, as we sustain the process of recovery. have learned, we cannot really "accommodate" The prospect for greater price stability, at least inflation without damaging economic growth and in the near term, is reinforced by the outlook for productivity. stability in petroleum prices and for ample crops. Now, we can see highly encouraging signs that And looking further ahead, partly as a result of the inflationary tide is turning—we see it in the the more favorable tax climate, we should be data, and less tangibly, in expectations. The able to achieve renewed and sustained growth in improvement, to be sure, has been associated productivity as the economy grows. with highly unsatisfactory business conditions. Obviously, it is far too soon to claim victory in Prices of commodities, in particular, are sensi- the fight on inflation. To make that prospect a tive to depressed demand, incentives to reduce reality, properly restrained and cautious moneinventories are apparent, and the weakened fi- tary policy will continue to be required. And at nancial position of many companies has led to the same time, we need to combine that antiextraordinary efforts to restrain wages and costs inflation effort with policies that will encourage generally. and sustain the recovery process. The linkage Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 Federal Reserve Bulletin • February 1982 lies in considerable part in encouraging favorable tionary, and the point would be advanced that, developments in financial markets and interest given sufficiently severe monetary policy, they rates, and critical implications exist for the mix might not be. But that would imply far higher of government policies. An inadequate balance interest rates, lower investment, and poorer ecoin policies can add to financial stress, with severe nomic performance generally. Paradoxical as it consequences for vulnerable credit-dependent may seem, action by the administration and the sectors of the economy—consequences most Congress to bring spending and our revenue dramatically reflected in homebuilding and in the potential into closer balance—and ultimately into problems of many small businessmen and farm- balance and surplus—as the economy expands ers. Moreover, our need to improve and modern- can be a major element, through its implications ize our plant and equipment is evident. That need for credit markets, in promoting recovery and lay behind many of the tax changes enacted last nurturing it. Credibility in the budget, through its year; but overburdening monetary policy in deal- effects on expectations and behavior, could only ing with inflation, with consequences for finan- work toward lower interest rates and speeding cial pressures in the marketplace, can work the disinflationary process. against that very objective. In essence, the burden of my comments is that This year we will have a very large federal the need for disciplined financial policies to carry deficit. To the extent that deficit is a passive through the anti-inflation effort is not lessened by reflection of recession—which in turn reduces the current recession. It is not just a matter of the other credit demands—even that deficit may be long run: to back away from the commitment to manageable without, in itself, standing in the deal with inflation would be a disturbing matter way of a more favorable financing climate. The for financial markets today, complicating the large federal contribution to the income stream— prospects for early recovery. including the second stage of the tax cut at Interest rates fell appreciably last fall, and midyear—should help buoy economic activity. most have remained substantially below earlier But during a period of recovery, deficits ap- peaks. But in both real and nominal terms, they proaching the current magnitude would have remain extraordinarily high. The fact is that quite another implication; in an environment of markets remain sensitive, disturbed, and uncerlimited monetary expansion and rising private tain despite the encouraging trend toward less demands for credit, they would threaten pro- inflation. We cannot wish these doubts and skeplonged strain and congestion in financial mar- ticism about the future away; we can dispel them kets, with strongly adverse consequences for by our actions. other borrowers. And those consequences are That, of course, has important implications for not merely a hypothetical possibility for the monetary policy. As I indicated at the outset, I future. That concern preoccupies the thinking of will deal more specifically with our intentions many potential investors in the market today, with respect to monetary growth after the Federmaking them reluctant to commit funds for any al Open Market Committee, in the normal long period of time, fearful that interest rates course, meets next week to adopt guidelines for may not decline or could even rise. the coming year. The basic thrust of policy will You and I may think those concerns overdone, remain one of encouraging continued progress on particularly in the light of the extraordinarily the inflation front. With such progress, adequate high level of rates today in relation to the pros- financial resources should be available to suppects for inflation. But the lesson for policy port renewed economic growth. seems to me unambiguous. Fiscal action needs to Present economic conditions are those of pain be directed toward the progressive and substan- and hardship for many. In working to relieve tial reduction of the deficit as recovery proceeds. them, let us not forget the basic circumstances We know there is a deep-seated public instinct that brought on the difficulty. Let us take heart associating large deficits with inflation, and a from the signs of progress in turning the corner great deal of history points in that direction. We toward more price stability. We can build on that could also engage in abstract debate about progress and in doing so restore the confidence whether budgetary deficits are inherently infla- and financial condition so critical to recovery. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 91 Statement by J. Charles Partee, Member, Board ral extension of services banks already underof Governors of the Federal Reserve System, take in various departments, we believe that the before the Subcommittee on Securities of the easiest and most beneficial method of imple- Committee on Banking, Housing, and Urban menting the new activities would be to allow Affairs, U.S. Senate, February 4, 1982. them to be carried out in the appropriate section of the bank. Bank participation in these areas I am pleased to appear before you to discuss would be conducted under the same basic legal proposals to expand bank participation in securi- and regulatory structure that applies to nonbank ties markets by allowing banks to underwrite participants, but responsibility for supervising municipal revenue bonds and to offer mutual the new activities would logically fall to the funds. These measures involve the natural exten- agencies that now perform this task for the sion of activities already engaged in by banks, related existing activities of banks. Within this but the significance of these activities should not framework, we can achieve equity in regulation be underestimated. They could have major ef- between bank and nonbank entities competing to fects on bank customers and competitors, and deliver the same services, and we can protect the the structural and regulatory framework within public interest in safeguarding the soundness of which these proposals are implemented may set our financial institutions. the pattern for other changes to be considered by The Board does not see the need for requiring the Congress as part of its broad reexamination that the proposed activities be done in a separate of the laws governing our financial system. As affiliate within the corporate structure. We beyou know, the Treasury Department has put lieve that this approach would reduce some of forward a plan to mandate that the proposed new the public benefits that could derive from entry powers be exercised in a separate affiliate of a by banks or thrift institutions into these areas, bank holding company. The Treasury's bill also would be unnecessarily expensive and burdentreats other features of bank holding company some, particularly for smaller institutions, and organization and regulation, but I will confine my would not by itself provide effective protection remarks to those aspects dealing with securities from risks to the combined organization that activities of banks. these activities could in some circumstances The Board favors granting banks the authority entail. to underwrite and deal in most state and local government revenue bonds. In addition, we think that trust departments of depository insti- MUNICIPAL REVENUE BOND tutions should be allowed to establish collective UNDERWRITING investment funds—analogous to mutual funds— that could be offered to the general public and The Board has long supported legislation that not limited to those customers who had entered would allow banks to underwrite and deal in into trust agreements. For now, we would limit municipal revenue bonds. We believe that this the investments of these more broadly available would be a logical and reasonable extension of funds to stocks and bonds; sponsorship of money current bank activity in the tax-exempt market. market funds by banks or thrift institutions Revenue bonds played a minor role in state and seems to us to be in effect a "back door" method local government finance in the early 1930s when of deregulating deposit rate ceilings. As such, it Glass-Steagall restrictions were imposed, but by would undermine the authority of the Depository last year they had grown to around 70 percent of Institutions Deregulation Committee (DIDC), tax-exempt bond sales. The entry of banks into the body established by the Congress to oversee this area would allow them to utilize the experan orderly phaseout of these ceilings, and in the tise of their muncipal bond departments more process would tend to aggravate an already diffi- fully and efficiently, and the additional competicult situation caused by erosion of the traditional tion should reduce costs for many revenue bond deposit base of depository institutions in favor of issuers. investments in money market instruments. We believe that the provisions of section 301 Because these proposed activities are the natu- of S. 1720 introduced by Senator Garn in the last Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 Federal Reserve Bulletin • February 1982 session of Congress would be sufficient to pro- comingled funds for investing in stocks or tect against a bank assuming excessive risk when bonds—as do investment companies—for acunderwriting revenue bonds and against conflicts counts handled on an advisory basis. Offering between the interests of the bank as underwriter this service would increase the potential outlets and as investor or fiduciary. Banks would be for the savings of small investors through participermitted to underwrite or deal only in those pation in diversified investment funds and would issues in which they could also invest, and their seem an especially appropriate change in view of holdings of the obligations of any one issuer the broadened availability of individual retirewould be limited to 10 percent of the bank's ment and Keogh accounts that has just taken capital and surplus. Moreover, transactions be- place. Although thrift institutions generally do tween the bank's dealer department and its in- not have trust departments, federally chartered vestment or trust accounts would be regulated. savings and loan associations were authorized by Indeed, we would recommend that the Congress the Congress in 1980 to offer trust services. The extend those protections to bank transactions in Board believes that any institution having a trust general obligation municipal securities as well. department should be eligible to offer the pro- Departments already established by the banks posed service, and we recommend that any new to deal in tax-exempt securities are now subject legislation reflect this approach. to the same regulations of the Municipal Securi- Because collective investment funds offered to ties Rulemaking Board (MSRB) as are nonbank the public on an agency basis would be functionsecurities dealers, and those regulations would ally equivalent to a mutual fund, we suggest that also apply to revenue bond activities. Enforce- it would be appropriate for the banks to register ment of the rules of the MSRB and the Securities the funds under the Investment Company Act of and Exchange Commission (SEC) and examina- 1940 and abide by its rules. However, to protect tion of tax-exempt bond underwriting and deal- against special difficulties that may be associated ing would continue to be left to the primary bank with bank entry into this area, the Board believes regulator. Personnel from the banking agencies that additional restrictions should be imposed on have been specially trained to examine for com- the bank trust department procedures, at least pliance with these rules, and they also are trained until some experience is gained with the activity. to look closely for potential conflicts of interest To avoid excessive promotion of the new servor unsound practices that may stem from the ices to depositors or other customers, banks combination of investment and commercial should be permitted to offer only funds that do banking functions. not involve payment of a front-end "load" or sales charge at the time of purchase. The advertising by banks of their comingled funds should OFFERING MUTUAL FUNDS also be constrained by regulation, to prevent undue public identification of the bank with the Stock and bond funds. Bank trust departments performance of its collective funds. are in the business of managing investment funds The primary bank regulators have responsibilfor their customers and have a long and well- ity for supervising collective funds now adminisdeveloped expertise in this field. Although banks tered by bank trust departments, and this authorare permitted to combine funds of some types of ity could be extended readily to the new accounts to realize the efficiencies of investing comingled accounts. These regulatory agencies them collectively, the banks are authorized to have special trust examiners who are sensitive to offer this service to individual investors only if the potential for conflicts of interest between the they have established a trust relationship with trust and commercial areas of the banks. These the bank. agencies have adopted specific guidelines to re- The Board believes that the needs of smaller quire a "Chinese Wall" between fiduciary and investors would be better served if bank trust other bank activities that would be used also in departments were allowed to offer collective or connection with this new activity. Trust examin- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 93 ers could be instructed to look for compliance created the DIDC—namely, that the transition to with the rules of the SEC under the Investment market-determined rates on deposits be managed Company Act, which provide added safeguards to minimize the possibility of severe dislocations against conflicts of interest. And the examiners, in the financial system. of course, would be particularly sensitive to any The diversion of deposits to MMF shares also attempted use of bank resources in support of a is of concern because of the possible impact on troubled investment fund. the distribution of credit. Funds are drained from local institutions, where they are available to Money market funds. Unlike funds investing in make loans in the service area, and invested stocks and bonds, collective or mutual funds instead in instruments issued mainly by the largholding short-term money market instruments est banks and corporations. Local lenders can have attributes closely resembling bank deposits. replace these funds in the credit markets or Like deposits, money market funds (MMFs) through government agencies to some extent, have a fixed asset value (except in extreme but the cost and availability of credit to small circumstances) and generally are accessible by local borrowers could well be affected by an check or phone transfer so that they can be used accelerated conversion of deposits to MMFs. for third-party transactions. The Board recog- Moreover, this problem is not readily alleviated nizes that shares of MMFs have already been by allowing banks to sponsor their own MMFs substituted in substantial amounts for deposits because prudential rules of diversification and by the public, and that many depository institu- arm's-length dealing may well restrict the ability tions view the power to issue money market of bank sponsors to purchase their own liabilfunds as an appropriate defensive response. But ities. this very troubling process could have undesir- The Board is also troubled by the implications able effects on the financial system, and one that for public confidence in our financial system of would be greatly accelerated if MMFs were rechanneling funds from insured deposits to unoffered by banks, given the convenience of these insured MMFs. Difficulties in one or more institutions and the aura of safety that sponsor- MMFs, though a remote possibility, could lead ship by a highly regarded local banking organiza- to a more general loss of confidence in all MMFs tion would transfer to associated MMFs. Be- and perhaps other institutions—especially the cause of its concerns, the Board is opposed to banks or thrift institutions offering the MMFs. allowing banks or thrift institutions the right to Such a development could produce sudden readsponsor or sell money market funds or similar justments and disruptions in credit flows; and it facilities at the present time. could give rise to the need for potentially mas- A major consequence of the growth of MMFs sive federal action to bolster affected institutions has been an erosion of the deposit base of many and borrowers. institutions, forcing them to cut back lending or The similarities of MMF shares with deposits, to replace lost deposits with funds acquired in and the substitution of these shares for deposit the open market at high interest rates. For those balances—including use in transactions—also institutions—like savings and loan associa- present problems for the conduct of monetary tions—that hold longer-term fixed-rate assets, policy. Interpretation of the behavior of the this has resulted in a sharp erosion of earning monetary aggregates becomes more difficult, and capacity. Concern for these institutions has con- less confidence can be placed in any particular strained the pace at which the DIDC has been monetary target in helping to achieve the naable to proceed with the phasing out of deposit tion's economic goals. Our ability to control the rate ceilings. But allowing depositories to offer monetary aggregates also may suffer. The Conmoney funds would in effect void the existing gress structured the Monetary Control Act so rate ceilings, putting additional pressure on an that all transaction balances held in depository already deeply troubled thrift industry and con- institutions would be subject to reserve requireflicting with the intention of the Congress when it ments at the Federal Reserve. MMFs obviously Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 Federal Reserve Bulletin • February 1982 are outside this provision, and we have therefore However, the Board views the Treasury's prorequested authority from the Congress to place posed requirement that these new activities be reserves on MMF accounts that are accessible conducted in such an affiliate as both unnecesfor transactions—a need that would only be sary and possibly counterproductive. The intensified if banks were to offer MMFs. changes in powers are evolutionary in nature, The problems that may be associated with building on the established business and experbanks or thrift institutions offering MMFs in the tise of the banks, and the benefits from bank present environment seem to me to argue force- participation in the new areas can be realized fully against congressional authorization of this most fully if the new activities are lodged in those activity. Deposit deregulation should remain the departments of the bank already engaged in the responsibility of the DIDC and not be effected related activities. From a regulatory perspective, haphazardly through means that may produce we would want to apply the same basic set of undesirable shifts in deposits and credit flows, rules to a given activity whether performed by a unwind our system of federal insurance of the bank, its nonbank affiliate, or a nonbank firm, public's liquid deposit accounts, and threaten to and the Board sees advantages in utilizing the undermine the conduct of monetary policy. supervisory apparatus already in place for banks These difficulties are directly associated with the and thrift institutions. We believe our proposals diversion of deposits to MMF shares, and they would adequately protect the public against abucould be greatly alleviated by lifting the ceilings sive practices by banks or thrifts and would on deposit offering rates. The financial system better safeguard the public interest in maintainwould be far better served by this straightfor- ing a sound depository system. Moreover, the ward approach to deregulation, and the Board benefits of entry by banks and thrift institutions urges the DIDC to proceed with this process as into these activities can be fully realized without quickly as circumstances permit. incurring the expenses and inefficiencies of the affiliate form of organization. The requirement to establish a securities affili- SECURITIES AFFILIATES ate would be especially burdensome for smaller banks that undertake only a few underwritings of The Treasury's proposed bill joins the expansion municipal securities issues each year because it of powers of banks and thrift institutions with a would entail separate capitalization and all of the mandate that all securities activities be carried expenses of incorporation and independent operout only in separate affiliates. This requirement ation. If local and regional banks were to forgo would apply not only to the new activities, but revenue bond underwriting because of this buralso to existing dealer functions for any banks den, a significant part of the benefits of allowing wishing to take advantage of the expanded pow- banks into this activity would be lost. Enhanced ers. As I understand it, the affiliate form of competition is likely to result in the most signifiorganization is proposed in order to ensure that cant savings for smaller issuers with limited local the securities activities of banks are subject to markets—precisely those units offering securithe same rules, regulations, and investor safe- ties that small- or medium-sized banks would be guards as those of nonbanks, and to insulate the best positioned to underwrite. banks from any additional risks that these activi- Even for larger banks we do not see anything ties might entail. The use of securities affiliates is to be gained from forcing them to shift their also advanced as a means to prevent abuses that activities in the U.S. government and federal are possible when the same organization engages agencies markets to a separate affiliate, as the in commercial and investment banking. Treasury proposal would mandate for banks de- The Board has no objections to a bank holding siring to underwrite revenue bonds. No evidence company voluntarily establishing a securities af- has surfaced of problems or inequities in compefiliate subject to appropriate supervisory over- tition between banks and securities dealers in sight; we have in the past approved bank holding this important financing area. company applications for just this purpose. It is true that the securities affiliate form would Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 95 eliminate the advantage enjoyed by banks over such restraints are helpful in limiting the use of nonbank dealers that results from the tax treat- bank resources to support a troubled nonbank ment of bank interest expense. But this advan- affiliate, they have not been and are not likely to tage has had little impact on the relative abilities be fully effective in convincing either the markets of banks and nonbanks to compete for underwrit- or the public that a bank is immune to the ing business—positioning securities is not an problems of its affiliates. The Board has seen on important aspect of this activity, and nonbank several occasions situations in which difficulties dealers have done a substantial share of the in nonbank affiliates were quickly reflected in the underwriting of general obligation bonds over the cost and availability of funds to affiliated banks years. The tax advantage may be of somewhat because of the close links within the banking greater significance for trading in the secondary organization. market, which requires dealers to hold securi- An important premise of the Treasury proposties. Redressing this inequity by increasing the al is that the fates of bank and nonbank affiliates tax burden on banks, however, could well reduce can be effectively separated, provided that safetheir willingness to participate in the municipal guards are erected to forestall unsound transacsecurities markets. I question whether this is tions between the two. From this premise flow a desirable at a time when these markets are number of provisions of the Treasury bill, includalready under great strain, and I would urge the ing one that the Board finds particularly trouble- Treasury and the Congress to seek other meth- some. This proposal would deny us the authority ods of redressing the tax imbalance. to examine nonbank affiliates, including the new Although the Board considers the securities securities affiliate, except when the Board makes affiliate requirement to be inferior to allowing a prior finding that the financial condition of the these new activities to be conducted in the banks affiliate is likely to have a materially adverse themselves, we could reluctantly accept the effect on the safety and soundness of the bank. mandated affiliate concept provided that it incor- As I have said, our experience is that the porates adequate safeguards for the banking sys- public's confidence in a bank is generally linked tem. With respect to defining this last point, we with the financial strength of any important nonappear to differ most markedly with Treasury. bank affiliate. For this reason, the Board believes Generally, the Board does not view the use of that continuing regulatory oversight of the nonthe securities affiliate form by itself as providing bank activities of a banking organization, includsufficient protection for the banking part of the ing those that manage investment funds and organizations. Exposure of the parent to exces- underwrite securities, is critical to the maintesive risk-taking in the affiliate, arising in part nance of the soundness of the entire organizafrom the strong prospect of public identification tion. of the securities affiliate with the banking name, Therefore, we would urge that, if the Congress means that serious problems in the affiliate accepts the Treasury's concept of separate affiliwould very likely have an adverse impact on the ates, such affiliates continue to be subjected to bank. Restrictions such as those I have discussed oversight by the bank regulatory authorities as for municipal bond underwriting and the sale of provided for in existing statutes. These authoricollective funds thus are necessary whether the ties would be expected to enforce rules of the activity is carried out by the bank or in a separate SEC as well as their own and should also have affiliate. It is true that putting these activities in a prompt access to any information that the SEC separate corporation triggers statutory barriers generates in examinations or any other actions it that limit transactions between a bank and its undertakes. But we are strongly of the view that affiliate—barriers that would need to be extend- the particular circumstances of banking and the ed by amending section 23A of the Federal special status accorded banks in our financial Reserve Act to include advised or sponsored system require the continuing presence of bankentities to cover the collective funds. But while ing supervisors to protect the public interest. • Additional statement follows. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

96 Federal Reserve Bulletin • February 1982 Statement by Paul A. Volcker, Chairman, Board is fair to say a clear national consensus emerged of Governors of the Federal Reserve System, that turning back inflation had to be a top priority before the Committee on Banking, Finance and of economic policy—that a stable dollar is a Urban Affairs, U.S. House of Representatives, necessary part of the foundation of a strong February 10, 1982. economy. Monetary policy has a key role to play in I appreciate the opportunity to meet with mem- restoring that stability, and our policies are dibers of this distinguished committee to discuss rected to that end. But recent developments have the direction of monetary policy and the pros- confirmed again that ending an inflation, once it pects for the national economy. I have submitted has become deeply seated in expectations and for the record the official report from the Board behavior, is not a simple and painless process. in accordance with the Humphrey-Hawkins Act. The problems can be aggravated if too much of I would like to take a few minutes to underscore the burden rests on one instrument of policy. and amplify some of the points in that report, as And the effort to restore stability will be more well as to offer some more personal views on the difficult to the extent that policies feed skeptiproblems—and equally important, the opportuni- cism and uncertainty about whether the effort ties—that are before us. will be sustained—a skepticism rooted in past As you know, the economy has been in reces- failures to "carry through." Monetary, fiscal, sion for some months. The recession has some of and other public policies are constantly scrutithe characteristics of earlier downturns. But it nized—in financial markets and elsewhere—to seems to me plainly wrong to think of the current detect any signs of weakening in the sense of state of the economy as simply reflecting "anoth- commitment to deal with inflation. To speed the er" recession. transition to lower interest rates and healthier Rather, we are seeing the culmination of a capital markets, to reduce the costly elements of much longer period of unsatisfactory economic anticipated inflation built into wage and price performance extending back into the 1970s— contracts, to permit more confident planning for performance marked by poor productivity, grow- the future—to, in fact, lay the base for sustained ing unemployment, much higher interest rates, recovery—credibility in dealing with inflation and pressures on the real earnings of the average has to be earned by performance and persiscitizen and on the real profits of our businesses. tence. A number of factors have contributed to that That, essentially, is what public policy—and deterioration in our performance, not all of them monetary policy in particular—has been about completely understood. But one pervasive ele- for some time, and now signs of real progress on ment—an element particularly relevant to mone- the inflation front have appeared. That progress tary policy—stands out: we found ourselves in is reflected to a greater or lesser degree in all the the midst of the most prolonged inflation in our widely used inflation indexes. Consumer prices history, and that inflationary process had come rose 8.9 percent last year, 3!/2 percentage points to feed on itself. Incentives were distorted. Too less than the 1980 peak, and the inflation rate much of the energy of our citizens was directed seemed to be trending still lower as the year toward seeking protection from future price in- ended. Producer prices for finished goods have creases and toward speculative activity, and too had an average increase at an annual rate of only little toward production. Increasingly depressed about 4 percent for six months. Expectations and volatile capital markets reflected the uncer- cannot be so easily measured, but earlier fears tainties. Effective tax rates increased as inflation that inflation might rapidly accelerate have plaincarried taxpayers into higher brackets. But in a ly dissipated. sluggish economy those revenues did not keep Those gains, to be sure, have elements that up with our spending plans and programs. may not be lasting. Some prices are depressed by Against that background, the notion that we recession-weakened markets, and some by the might comfortably live with inflation—or that we pressures of high interest rates on inventories could accept inflation in the interest of strong and speculative positions; exceptionally good growth—was exposed as an illusion. I believe it crops last year have held food prices down; and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 97 surpluses have emerged in oil markets, following the same time, we have had to adjust to the huge the enormous price increases of earlier years. increases in the price of energy, to meet the need But we also see evidence of potentially more for a stronger defense, and to deal with the drag lasting changes in the trend of costs as manage- on incentives and investment resulting from risment and labor in key industries come to grips ing marginal tax rates. All of these imply massive with competitively damaging productivity and economic adjustments, the threat of a growing wage trends. I am aware that this process has fiscal imbalance, and a difficult transition period. just begun, and it has been centered largely in The high level of unemployment generally, with areas where competitive pressures are most in- particularly distressing conditions in some of our tense. But as the emerging patterns spread, we older industrial centers, are one symptom. Lastwill have succeeded in establishing one of the ing progress toward price stability—and other major elements for success in the fight against needed adjustments—cannot be built on proinflation and for reconciling, as we must, a return longed stagnation, rising unemployment, and to greater price stability with growth, reduced slow growth. The relevant question is not whethunemployment, and higher real wages. Quite er current conditions are satisfactory or toleraobviously, policies that encourage that process ble—obviously they are not. It is whether our of cost moderation will have a large "payoff" in policies, and our policy mix, promise to achieve future economic performance. the needed results over time. I am acutely aware that progress on the inflation front has been accompanied by historically high levels of interest rates and heavy strains on MONETAE Y POLIC Y IN 1981 financial markets. Those sectors of the economy AND THE TARGETS FOR 1982 particularly dependent on borrowing—especially long-term borrowing—have been hard hit. Against that background I would like to review The pattern of economic activity last year monetary policy last year and discuss our intenshows the picture clearly. Over the course of tions for 1982. 1981, the overall level of production of goods and As you know, the main responsibility for dealservices—real gross national product—posted a ing with inflation has fallen on monetary policy. I slight increase. But at the same time, home would emphasize that the process of restoring building dropped to the lowest level in decades. stability will proceed more easily and effectively, Sales of consumer durable goods—car sales in with less strain on financial markets and on particular—fell markedly. And now capital in- credit-sensitive sectors of the economy, to the vestment by businesses also appears to be ad- extent that the effort is complemented and supversely affected, running contrary to longer-term ported by other policies. But in the end, history needs. and theory alike confirm that no effort to turn It would be simplistic to cite high interest rates back inflation can be successful without approas the sole cause of the difficulties in these priate restraint on the expansion of money and vulnerable sectors. Part of the problem arises credit. I believe the record of the past few years from other, and longer-term, factors, themselves amply reflects the needed monetary discipline. associated with the inflationary process. In hous- The Humphrey-Hawkins Act specifically reing, for example, we have had a decade of quires that we translate our broad objectives into increases in prices of homes almost double the quantitative monetary and credit targets. More rate of inflation in the economy generally and broadly, those targets have become one means of well in excess of the rise in average family communicating our intentions to the public in a income. "Sticker shock" still seems to be the comprehensible way. The judgments involved in major deterrent to new-car sales as the industry setting appropriate targets are never simple, and comes to grips with long-developing competitive they have been increasingly complicated by the and regulatory problems and the enormous chal- rapid pace of innovation in financial markets. lenge of adapting to the higher price of gasoline. Those innovations sometimes blur the precise In the best of circumstances, coping with meaning of the various monetary and credit deep-seated inflation would pose difficulties. At aggregates, complicate their measurement, or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

98 Federal Reserve Bulletin • February 1982 change the economic significance of a particular 1. Monetary growth, 1981 target. In the circumstances, elements of judg- Percent ment are necessary in interpreting behavior of Item Ranges Actual1 the aggregates, particularly when their movements diverge somewhat. Ml-B 6 to 8'/2 5.0 Ml-B (shift adjusted) ... 3'/2 to 6 2.3 The events of 1981 surely reflect those facts, M2 6 to 9 9.4 M3 6V2 to 9'/2 11.3 but they also seem to me to provide an unambig- Bank credit 6 to 9 8.82 uous record of persistent monetary restraint. The 1. Fourth quarter to fourth quarter. targets we set for the year pointed toward a 2. December level used for calculating this 1981 growth rate reduction in the growth of the monetary aggre- incorporates an adjustment to abstract from the shifting of assets from domestic banking offices to international banking facilities. gates from the rates of expansion in 1980. In our 1981 report to the Congress setting forth those tion of commercial bank financing patterns totargets, we also suggested that changing prefer- ward domestic sources that had not been anticiences of the public for different types of financial pated, while bank credit fell within, but toward assets—influenced by regulatory developments the upper part of, its range. and new "products" offered by financial institu- In judging trends over a period of time, annual tions—might tend to push the broader aggregate, averages may be more meaningful; growth of M2, to the upper part of its specified range, and Ml-B (adjusted) has declined an average of 1.1 that judgments about the course of the narrow percentage points since 1978, to a rate of 4.7 aggregates—Ml-A and Ml-B—would require percent in 1981 (table 2). On the same basis, M2 taking account of shifts into negotiable order of growth was steady in 1979 and 1980 but actually withdrawal (NOW) accounts, particularly during rose more than 1 percentage point in 1981. Over the early part of the year when they were intro- those years, both aggregates have been affected duced nationwide. These expectations were by institutional change. Relaxation of interest borne out, but as the year progressed the diver- rate ceilings applicable to time deposits of deposgences among some of the aggregates became itory institutions and the enormous growth of even wider than expected. money market funds (both included in M2) tend- Measured by comparing fourth-quarter aver- ed to raise the trend of M2 over the period as ages in 1980 and 1981, growth of Ml-B (adjusted individuals had incentives to lodge a larger profor the estimated shift of funds into NOW ac- portion of their assets in these instruments. Ascounts1) in 1981 was 2.3 percent, a little more sets in money market mutual funds are not than 1 percent below the lower end of the target included in Ml, but the enormous growth of range specified a year ago (table 1). You will those funds, providing virtually immediate availrecall that I reported to you in July that an ability of funds and check-writing privileges, outcome near the lower end of the range would diverted some money away from checking acbe desirable. 2. Growth of money and bank credit Measured in the same way, M2 slightly ex- Percentage changes ceeded the upper end of its range, after rather closely following the upper bound as the year Item Ml-B1 M2 M3 Bank credit progressed. The subsidiary target range for M3 Fourth quarter to was exceeded by a greater margin, reflecting in fourth quarter 1978 8.3 8.3 11.3 13.3 considerable part some changes in the composi- 1979 7.5 8.4 9.8 12.6 1980 6.6 9.1 9.9 8.0 1981 2.3 9.4 11.3 8.82 1. The "adjustment" allowed for shifts of funds into NOW Annual average to annual average accounts and similar instruments included in Ml-B from 1978 8.2 8.8 11.8 12.4 sources outside of Ml-B. The shift adjustment was estimated 1979 7.7 8.5 10.3 13.5 on the basis of various surveys of depository institutions and 1980 5.9 8.3 9.3 8.5 individuals, as well as by statistical techniques. Ml-B without 1981 4.7 9.8 11.6 9.42 adjustment rose 5 percent, also below its indicated range. 1. Growth rates for 1980 and 1981 adjusted for shifts to other While the adjustment was necessarily estimated, we believe checkable deposit accounts since the end of the preceding year. the "adjusted" data are more appropriate for assessing the 2. The December level used for calculating these 1981 growth rates trend in the money supply, particularly during the early part incorporates an adjustment to abstract from the shifting of assets from of the year when shifts were large. domestic banking offices to international banking facilities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 99 counts in depository institutions, which are in- cept inflationary increases in the money supply cluded in Ml. Given the technical and institu- in an attempt to lower interest rates would ultitional changes bearing on Ml and its relative mately be self-defeating: even in the short run, volatility, its movements need to be assessed in market sensitivities might well give the opposite the light of developments with respect to the result. other aggregates. Indeed, a number of analysts Some of these interrelationships were evident attach greater weight to M2. in 1981. Short-term interest rates fluctuated over Experience during 1981 also illustrates the a wide range, but generally trended down from variety of forces impinging on interest rates and peak levels in the spring or early summer, to fall credit market conditions. Over long periods of very sharply as the recessionary forces became time, there should be a relationship between apparent in the fall. That was a period when interest rates and inflationary expectations—that pressures on commercial bank reserve positions is, both lenders and borrowers might reasonably were easing, consistent with our monetary and anticipate a small positive return on loanable credit targets. However, longer-term interest funds in "real" terms, after allowing for infla- rates continued to rise for months after the peak tion. When economic conditions were relatively in short-term rates, influenced in substantial part stable in the postwar period and inflation low, by growing concern about prospective budgetary that relationship with respect to long-term inter- deficits. est rates was fairly steady. But history is replete As growth in the money supply rose more with deviations for a time in either direction, and rapidly late last year, and a very sharp increase high levels of income taxation distort the com- developed early in January, the reserve positions parison. Before taxes, "real" interest rates of banks came under some renewed pressure as (measured on the base of actual inflation) were Federal Reserve open market operations connegative during part of the 1970s, but recently strained the supply of reserves. At the same have been extraordinarily high. One factor, par- time, there were scattered signs that recessionticularly in long-term markets, appears to be ary forces might be waning. Short-term interest concern about whether public policy will, in fact, rates have risen from lows in early November, "carry through" the fight on inflation. although they remain well below levels prevail- Even with inflation subsiding, the threat of ing during much of 1981. Some long-term interest prolonged large federal deficits as the economy rates—notably those on government securities— recovers points to a more imminent concern— returned close to earlier peaks, suggesting the direct government competition for a limited sup- impact of current and prospective Treasury fiply of savings and loanable funds. The clear nancing. implication is greater pressure on interest rates This was the setting for the decision on the than otherwise, with those interest rates serving monetary and credit targets taken by the Federal to "crowd out" other borrowers. The most vul- Open Market Committee last week. The sharp nerable, of course, are homebuyers and others increase in the money supply in January carried particularly dependent on credit. But the conse- the level well above the average in the fourth quences for business investment generally are quarter of 1981, the conventional base for the adverse as well. new target, and somewhat above the lower end Monetary policy, of course, influences interest of the range specified for 1981. A large increase rates, but the relationship has several dimen- in the money supply, accompanied by higher sions. As monetary restraint reduces and elimi- interest rates, is unusual during a period of nates the risk of inflation over time, it will work declining production and economic activity. powerfully toward a more favorable climate for Moreover, the composition of the increase in the longer-term borrowing and in the credit markets money supply in the past three months is heavily generally. In the short run, should inflation, concentrated in a rather small component of economic growth, or other factors increase the Ml—NOW accounts, which are held by individneed and desire to hold money, restraint on the uals. That increase in NOW accounts has been supply of money will ordinarily be reflected in accompanied by a reversal of earlier sharp depressures on short-term rates. However, to ac- clines in savings accounts—another highly liquid Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

100 Federal Reserve Bulletin • February 1982 asset—and by declines in small-denomination 3. Monetary growth targets, 1982 time deposits, which provide a less liquid outlet Percent for personal funds. Taken together, the evidence Item Target suggests some short-term—and potentially "selfreversing"—factors may be at work, inducing Ml' 2 !/2 to 5 Vi M2 6 to 9 individuals to build up highly liquid balances at a M3 6'/> to 9Vi Bank credit 6 to 92 time of economic and interest rate uncertainty. Taking those circumstances and others into 1. The objective for growth of narrowly defined money over 1981 is set in terms of Ml. Based on a variety of evidence suggesting that the account, the Federal Open Market Committee bulk of the shift to NOW accounts had occurred by late 1981, the decided to adopt the tentative targets discussed Federal Reserve is publishing only a single Ml figure in 1982 with the same coverage as the former Ml-B. last July: 2. The bank credit data after December 1981 are not comparable with earlier data because of the introduction of international banking • for Ml, 2V2 to 5V2 percent. facilities. Thus, the targets for 1982 are in terms of growth from an • for M2, 6 to 9 percent. average of December 1981 and January 1982 to the fourth-quarter average of 1982. • for M3, 6V2 to 9V2 percent. The associated range for bank credit is 6 to 9 growth in M2 than a year ago, when the target percent.2 was slightly exceeded. At present, an outcome in The Ml target is lower than the range specified the upper half of the range appears more likely a year ago for Ml-B (3Vi to 6 percent, shift and desirable. Assets included in M2 account for adjusted), but it is consistent with somewhat a significant part of individual savings. Should larger actual growth than experienced last year total savings increase much more rapidly than with the "adjusted" measure. The lower end of now anticipated in response to tax incentives or the range would now appear appropriate only if other factors—or if legal or regulatory changes, the pace of financial innovation again picks up— such as the wider availability of individual retirefor instance, a rapid spread of arrangements for ment accounts, result in a substantial volume of "sweeping" temporarily excess checking ac- funds shifting into depository institutions from count balances into money market funds or other other sources—growth might logically reach (or liquid assets not included in Ml. Given the even slightly exceed) the upper limit. present level of Ml and the relatively slow Identifiable "structural" influences of that growth last year, the FOMC at this time feels sort on M2, or other aggregates, must approprithat an outcome in the upper half of the range ately be taken into account in formulating policy would be acceptable, and that Ml could accepta- steps and judging actual developments. For exbly remain somewhat above the implied "growth ample, should developments in coming months track" during the period immediately ahead. provide solid evidence that the recent exception- In that connection, I would point out that an al growth of Ml is indicative of some more outcome in the upper part of the range specified fundamental and lasting change—such as a defor 1982 would be roughly the equivalent of a rate sire by individuals to continue to hold more of growth of 4 percent from the lower end of the liquid "savings" in the form of NOW accounts— range targeted in 1981. Such a result would be the FOMC would, of course, reconsider that entirely consistent with the objective I stated to growth target at or before the regular midyear your committee in July. review. The FOMC anticipates somewhat slower These technicalities should not confuse a simple message: consolidating and extending the 2. While all of the monetary ranges were set, as in previous heartening progress on inflation will require conyears, on a fourth-quarter-to-fourth-quarter basis, the range tinuing restraint on monetary growth, and we for bank credit is measured from the average level in Decemintend to maintain the necessary degree of reber 1981 and January 1982 to the fourth-quarter 1982 level. straint. The growth ranges specified are, we This adjustment in the base for bank credit is necessitated by the opening of international banking facilities on December 3, believe, consistent with an economic recovery 1981, which led to a shifting of certain bank assets, formerly later this year, although we do not anticipate, by included in the domestic bank credit data, from U.S. offices historical standards, a sharp "snapback." What to the IBFs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 101 is more important is that the recovery have a firm but then lost our way. Some of the essential foundation—that it be sustained over a long elements of a brighter future—as well as some of period. There will be more room for real the hazards on the way—are reflected in the growth—and much better prospects for sustain- longer-term projections of both the administraing that growth over many years—the greater the tion and the Congressional Budget Office that are progress on inflation. now available to you. From the standpoint of public policy, much of the groundwork has been laid. I have spoken of THE COURSE AHEAD the key role for monetary policy, and of our record and intentions in that regard. The tax In approaching the future, the lessons of the past program enacted last year can, in the right conbear repeating. We cannot buy or inflate our way text, have favorable effects on incentives and on out of recession—not without ratcheting up both investment. The excessive burden of regulation inflation and unemployment over time. We can- is being addressed. not turn the effort to deal with inflation "on and But, of course, for the process to get fairly off—not without adversely influencing the deci- started we need to resolve some large outstandsions of those in the marketplace who commit ing questions as well—questions that hang heavifunds for investment, with consequences for the ly over financial markets and prospects for interrecovery and productivity we want. est rates, inflation, and early recovery. What we can do is set the stage for a much I have referred on many occasions to the key more favorable outlook—a future in which prog- importance of winding down the cost and wage ress toward price stability, lower interest rates, pressures that tend to keep the inflationary mogreater productivity, slower growth in nominal mentum going. The process appears to be startwages but higher real wages, all benignly interact ing, and the faster it takes hold the better the to support growth and reduce unemployment. outlook for growth and reduced unemployment. That is a process we have not seen sustained in But clearly prospects for early and sustained this country for many years. expansion—an expansion that can be broadly Today, we are acutely aware of disturbed shared by industries now severely depressed—is capital markets, high interest rates, economic dependent on access to capital and credit on slack, and a poor productivity record. But, when more favorable terms. Pumping up the money the economy begins to expand, productivity supply cannot be the answer to that problem— should rise; tax and other measures already in excessive money and the inflation it breeds are place or under way should help reinforce a better enemies of the real savings needed to finance trend. Productivity growth, in turn, will permit investment. prices to rise more slowly than wages—more What we can do is relieve the concerns the modest wage and salary increases in dollars will markets understandably have—concerns reflectthen be consistent with more growth in real ed so strongly in the budgetary documents before earnings, encouraging further moderation in you from both the administration and the Conwage demands and sustaining the disinflationary gressional Budget Office. Without action to cut process. As confidence returns to securities mar- spending—or, if that fails, to raise new revekets, prices of bonds and stocks should rise, and nues—we would face the prospect of deficits lower interest rates and more favorable capital rising to unprecedented amounts, whether meamarket conditions will in turn support the con- sured in dollars, in relation to the GNP, or as a tinuing growth in investment and productivity. proportion of our limited savings and the supply With appropriate budgetary and monetary disci- of loanable funds. We can debate among ourpline, the process could be sustained for years. selves just what level of deficit is tolerable in That is not an impossible vision. We saw coming years and what is not. We can be temptsomething of it in the early 1960s. As recently as ed to sit back and let a year pass as we discuss the mid-1970s, coming out of a deep recession, what programs should be cut or where revenues we seemed to be moving in the right direction— can be raised. But I think we all know that, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

102 Federal Reserve Bulletin • February 1982 without action, we would be on a collision course these circumstances, a degree of patience is between our need for new plant, equipment, and needed—and justified. housing and our capacity to save—and it would But delay is another matter. In my judgment, be more difficult to reconcile the requirements the more progress we can see in restraining for a sound dollar with our desire to grow. costs, and the more resolute your budgetary One could argue that we have a little time. A action, the earlier we can be assured a prompt large deficit in the midst of recession should be and strong recovery. manageable; it indeed provides some support for The course of action we have set in the Federal the economy in a time of stress. Also, large Reserve seems to me consistent with that sense potential sources of demand exist in the private of direction and urgency. But no single instrueconomy. The latest economic indicators are not ment of policy can, alone, do the job. We look so weak as they were. We can see we are making forward to working with you and your colleagues some progress against inflation, perhaps as fast in the weeks and months ahead to meet these as could reasonably have been anticipated. In all challenges constructively. • Chairman Volcker gave similar testimony before the Senate Committee on Banking, Housing, and Urban Affairs on February 11, 1982. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

103 Announcements EARNINGS OF FEDERAL RESERVE BANKS REGULATIONS G, T, AND U: AMENDMENTS Preliminary figures indicate that gross income of The Federal Reserve Board has announced the Federal Reserve Banks amounted to $15,509 adoption of several amendments to Regulations billion during 1981, a 21.1 percent increase from G (Securities Credit by Persons Other than a year earlier. Of this, more than $14 billion was Banks, Brokers, or Dealers), T (Credit by Bropaid to the U.S. Treasury. Current expenses for kers and Dealers), and U (Credit by Banks for the 12 Reserve Banks and their branches totaled the Purpose of Purchasing or Carrying Margin $897 million, 13.4 percent above a year earlier. Stocks) to simplify and clarify its securities mar- Assessment for expenditures of the Board of gin requirement rules. Governors amounted to $63 million. Other de- The Board's action was part of a general ductions from current net income amounted to overhaul of its margin regulations aimed at bring- $372 million. The principal items were net losses ing them up to date with current circumstances in of $124 million on sales of U.S. government the securities markets, reducing the regulatory obligations and $306 million on foreign exchange burden, and simplifying and clarifying the lanoperations. The foreign exchange loss was pri- guage. As part of its Regulatory Improvement marily due to revaluation of assets to market Program, the Board is reviewing all of its regulaexchange rates. tions with similar objectives. Net income before payments to the Treasury The Board adopted the amendments after contotaled $14,177 billion. Payments to the Treasury sidering comment received on proposed revias interest on Federal Reserve notes amounted sions of the margin regulations published in June to $14,025 billion; statutory dividends to member and July. The amendments are effective Februbanks, $75 million; and additions to Reserve ary 15, except for a provision in Regulation U Bank surplus, $77 million. concerning collateral, which is effective as of Under the policy established by the Board of March 31, 1982. Governors at the end of 1964, all net income after The Board will not complete the rewriting of the statutory dividend to member banks and its margin regulations for some time, but adopted additions to surplus to bring it to the level of these amendments—in the interests of lightening paid-in capital was paid to the U.S. Treasury as regulatory burdens and providing flexibility interest on Federal Reserve notes. along the lines proposed by the Board—when Compared with 1980, gross income was up comments disclosed no substantial disagree- $2,707 billion, due mainly to increases of $2,072 ment. billion on U.S. government securities and $454 Amendments to Regulation G permit lenders million on foreign currencies. Income from subject to this regulation (chiefly insurance compriced Federal Reserve services amounted to panies and credit unions) to extend the scope of $155 million, reflecting mainly the phasing in of a their lending, give them more flexibility with program to charge for Federal Reserve services respect to collateral, and clarify the definition of during the latter part of the year. indirect security for loans. Income of the Federal Reserve System is Amendments to Regulation T relax restrictions derived primarily from interest accrued on U.S. on the arranging of credit by brokers and dealers government securities that the Federal Reserve to permit investment banking services that may has acquired through open market operations, otherwise be prohibited. one of the tools of monetary policy. Amendments to Regulation U revise the appli- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

104 Federal Reserve Bulletin • February 1982 cability of the regulation so as to exempt bank Office of the Secretary. credit not secured by margin equity securities, Barbara R. Lowrey, Assistant Secretary, proand clarify the definition of indirect security moted to Associate Secretary. credit, as in Regulation G. James B. McAfee, Assistant Secretary, pro- Amendments to Regulations G, T, and U re- moted to Associate Secretary. move some restrictions on transactions in highly leveraged margin accounts, thereby giving these The Board has also announced the resignaaccount holders greater flexibility in reallocating tions of Harry A. Guinter, Assistant Director for portfolios. Contingency Planning in the Office of Staff Director for Federal Reserve Bank Activities, effective December 31, 1981, and of Robert A. MEETING OF CONSUMER ADVISORY Eisenbeis, Senior Deputy Associate Director in COUNCIL the Division of Research and Statistics, also effective December 31, 1981. The Federal Reserve Board has announced that its Consumer Advisory Council met on January 27 and 28, 1982. SYSTEM MEMBERSHIP: The Council, with 30 members who represent ADMISSION OF STATE BANKS a broad range of consumer and creditor interests, advises the Board on the Board's responsibilities The following banks were admitted to memberregarding consumer financial protection legisla- ship in the Federal Reserve System during the tion. It meets four times a year. period December 11, 1981, through January 10, 1982: CHANGES IN BOARD STAFF Alabama Birmingham . . . Central Bank of Birmingham The Board of Governors has announced the Colorado following official staff actions, effective Janu- Pueblo West ... Bank of Southern Colorado ary 20, 1982. Delaware Wilmington Morgan Bank (Delaware) Division of Research and Statistics. Oregon Peter A. Tinsley appointed Assistant Director. Corvallis Bank of Corvallis Mr. Tinsley, who joined the Board's staff in McMinnville Valley Community Bank October 1965, has a Ph.D. from Princeton Uni- Virginia versity. Danville Virginia Bank and Trust Donald L. Kohn, Deputy Associate Director, Company promoted to Senior Deputy Associate Director. Frederick M. Struble, Assistant Director, transferred to Assistant Director in Program Direction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

105 Record of Policy Actions of the Federal Open Market Committee Meeting Held on biles, although up slightly in Novem- December 21-22, 1981 ber, continued at a depressed rate. Private housing starts in Novem- 1. Domestic Policy Directive ber, at an annual rate of about The information reviewed at this 870,000 units, changed little from the meeting suggested that real GNP de- depressed level of October. Sales of clined appreciably in the fourth quar- new homes picked up in October, ter, after having increased at an annu- while sales of existing homes al rate of 1.4 percent in the third dropped further; total sales of new quarter, according to revised esti- and existing homes were about onemates of the Commerce Department. third below the pace in 1980. Average prices, as measured by the The producer price index for finfixed-weight price index for gross do- ished goods rose 0.5 percent in Nomestic business product, appeared to vember, about the same as in Octohave risen less rapidly than over the ber. Food prices declined in first three quarters of the year. November while prices of energy- In November the index of indus- related items, particularly gasoline trial production fell 2.1 percent, the and natural gas, rose. During the largest of four consecutive monthly first eleven months of 1981, the findeclines. The decline was broadly ished goods index increased at an based, reflecting reductions in out- annual rate of about lxh percent, put for nearly all major product well below the increase of nearly 12 groupings, and was particularly percent over 1980. The consumer sharp for durable consumer goods price index rose about 0.4 percent and durable goods materials. Capac- and 0.5 percent in October and Noity utilization in manufacturing fell vember respectively; through No- 2 percentage points further to 74.9 vember of this year the index inpercent, equal to its recent trough in creased at an annual rate of about July 1980. 9^4 percent, compared with a rise of Total nonfarm payroll employ- about 12V2 percent over 1980. The ment declined by nearly VA million in rise in the index of average hourly November, the same as in October. earnings was somewhat less rapid Employment decreases in both thus far in 1981 than during 1980. months were concentrated in manu- In foreign exchange markets the facturing, and in November the trade-weighted value of the dollar trade sector registered its first de- had changed little on balance since cline since June 1980. The unem- mid-November, as a decline through ployment rate rose an additional 0.4 the end of November was more than percentage point to 8.4 percent. reversed in early December. Trading The nominal value of retail sales, conditions in the final week of the which had declined 2.1 percent in intermeeting period were unsettled October, rose 0.8 percent in Novem- by the declaration of martial law in ber; the level in November remained Poland. The U.S. trade deficit in well below the average for the third October widened substantially from quarter. Unit sales of new automo- the unusually low rate in September. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

106 Federal Reserve Bulletin • February 1982 The average for the two months was estimated at about 9Vi percent, about the same as that for July and somewhat above the Committee's August, but larger than that record- range of 6 to 9 percent for the year. ed in the first and second quarters of Growth in nonborrowed reserves the year. picked up in November and thus far At its meeting on November 17, in December from the October rate, the Committee had noted the moder- but on balance remained well below ate shortfall in growth of M-1B in the pace of last summer. Borrowings October from the 7 percent annual from Federal Reserve Banks for purrate from September to December poses of adjusting reserve positions adopted at the preceding meeting remained relatively low on the averand had decided that open market age in the five weeks of the interoperations in the period until this meeting period; they were little meeting should be directed toward changed from those in the week endbehavior of reserve aggregates con- ing November 18 and were well besistent with growth of M-1B from low levels in the immediately pre- October to December at an annual ceding weeks. The federal funds rate rate of about 7 percent (after allow- declined from about 13'/4 percent in ance for shifts into NOW accounts) the days just before the November and with growth of M-2 at an annual meeting to around 12 percent in earrate of around 11 percent. It was ly December and then moved up into understood that somewhat more rap- a range of 12 to \2xh percent. On id growth of M-1B, consistent with December 3 the Board of Governors the objective adopted at the preced- announced a reduction in Federal ing meeting, would be accepted. If it Reserve discount rates from 13 to 12 appeared to the Manager for Domes- percent to bring them into better tic Operations that pursuit of the alignment with the short-term rates monetary objectives and related re- that had recently been prevailing in serve paths during the period before the market. the next meeting was likely to be Short-term market interest rates associated with a federal funds rate declined about 3A to 1 percentage persistently outside a range of 11 to point further in the latter part of 15 percent, the Chairman might call November, and bond yields moved for a Committee consultation. down about lA to V2 percentage In the event, M-1B (adjusted for point. Subsequently, most market shifts into NOW accounts) expanded rates rose to levels close to or somein November and early December at what higher than those prevailing at rates somewhat above the October- the time of the mid-November to-December path, as checkable de- FOMC meeting, apparently in reposits other than demand deposits sponse to strength in the monetary rose markedly. Nevertheless, growth aggregates and reports of adminisof M-1B from the third to the fourth tration estimates of substantially enquarter (partly estimated) was at an larged budget deficits. However, the annual rate of only about 4!/2 per- prime rate charged by commercial cent; and growth over the year from banks on short-term business loans the fourth quarter of 1980 to the was reduced about 1 percentage fourth quarter of 1981 was about 2 point further to 153/4 percent over the percent, well below the Committee's intermeeting period, and the average range of 3V2 to 6 percent. Growth of rate for primary conventional mort- M-2 accelerated in November to the gages also declined about 1 percenthighest rate so far in 1981, reflecting age point. a surge in its nontransaction compo- Expansion in total credit outstandnent in addition to the strength in ing at U.S. commercial banks slowed M-1B. Growth over the year ending to an annual rate of about VA percent in the fourth quarter of 1981 was in November. The slowing reflected Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 107 primarily a sharp reduction in bank It was also observed, however, holdings of Treasury securities and a that the risk of significant further further moderation in the growth of contraction in the housing and auto business loans. Short-term borrowing sectors appeared small. Those secby businesses through issuance of tors were likely to benefit from the commercial paper rose substantially, declines in interest rates that had however, as the spread between com- already occurred. Moreover, the inmercial bank prime rates and market come tax reductions already legislatinterest rates widened. In response to ed were generally expected to conthe decline in long-term interest rates, tribute to an upturn in economic moreover, the volume of public offer- activity by the middle of 1982. ings of corporate bonds rose in No- With respect to the outlook for vember to a record level; the pace of continued progress in reducing inflaofferings slowed in early December tionary pressures, the view was exbut was still relatively large. pressed that the climate appeared to The staff projections presented at be more favorable for moderation in this meeting suggested that real GNP negotiation of new labor contracts would continue to decline in the first and in pricing decisions than it had quarter of 1982, although at a pace been for many years. In some indusconsiderably slower than that esti- tries and regions, measures to premated for the fourth quarter of 1981, serve jobs were coming to be viewed and that activity would begin to re- as more important than improvecover in the second quarter. The ments in wages and benefits. Comunemployment rate was expected to petition from imports, moreover, rise somewhat further to a peak in was exerting a restraining influence the second quarter of the new year. on wages and prices. The rise in the fixed-weight price At its meeting in My 1981, the index for gross domestic business Committee had reaffirmed the moneproduct was projected to slow fur- tary growth ranges for the period ther in the quarters ahead. from the fourth quarter of 1980 to the In the Committee's discussion of fourth quarter of 1981 that it had set the economic situation and outlook, at its meeting in early February. the consensus was that real GNP These ranges were 3 to 5V2 percent was declining appreciably in the cur- for M-1A and V/2 to 6 percent for rent quarter. It was suggested that M-1B, abstracting from the impact the overall reduction in output was of NOW accounts on a nationwide likely to be at least as deep as the basis; 6 to 9 percent for M-2; and 6V2 average decline in recessions since to 9!/2 percent for M-3. The associatthe Second World War, but it was ed range for bank credit was 6 to 9 also observed that uncertainty con- percent. The Committee had recogcerning the likely severity of a reces- nized that a shortfall in M-1B growth sion typically was great at this early in the first half of the year partly stage. Business capital spending was reflected a shift in public preferences one sector that seemed vulnerable to toward other highly liquid assets and a weaker performance than was gen- that growth in the broader aggreerally being projected. The mood in gates had been running somewhat the business community, particular- above the upper end of the ranges. ly the industrial sector, was de- In light of its desire to maintain scribed as gloomy, because of the moderate growth in money over the sluggish economic growth in recent balance of the year, the Committee years, the currently low rates of ca- expected that growth in M-1B for the pacity utilization, and the wide- year would be near the lower end of spread expectation of huge federal its range. At the same time, growth budget deficits and high real interest in the broader monetary aggregates rates. might be at the higher end of their Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

108 Federal Reserve Bulletin • February 1982 ranges. For the period from the over, the surge in OCD was accomfourth quarter of 1981 to the fourth panied by a renewal of flows into quarter of 1982, the Committee had savings deposits at commercial tentatively agreed that growth of banks and continuation of substan- M-l, M-2, and M-3 within ranges of tial flows into money market mutual V/i to 5Vi percent, 6 to 9 percent, funds, which raised growth of M-2 in and 6!/2 to 9Vi percent respectively November to the highest rate so far would be appropriate. At this meet- in 1981. Given the volatility of the ing, the Committee began a review behavior of the monetary aggregates of the ranges for 1982 in the expecta- in the short run, it seemed that the tion that at the meeting scheduled recent spurt might have resulted for early February it would complete partly from an expansion of highly the review and establish ranges for liquid precautionary balances at a the year within the framework of the time of considerable uncertainty Full Employment and Balanced about near-term economic and finan- Growth Act of 1978 (the Humphrey- cial conditions, as well as a response Hawkins Act). to the lower level of market interest In looking ahead to 1982, it had rates in earlier weeks. been decided earlier to abandon as The Committee decided to specify of the beginning of the year the com- monetary growth rates for the fourpilation of M-l A and the shift-adjust- month period from November 1981 ed M-l B (that is, M-1B adjusted to to March 1982, because data for Deexclude that portion of flows into cember were necessarily incomplete NOW accounts in 1981 estimated to at the time of the meeting. It was have come from other interest-bear- generally recognized that a marked ing assets rather than from demand slowing in monetary growth in the deposits). That decision was based early months of 1982 from the rapid on a judgment that, after a full year pace in November and early Decemof availability of NOW accounts on a ber was desirable. Some members national basis, the magnitude of ad- stressed the desirability of specifyditional shifts might no longer be ing growth rates for both M-l and significant, and that in any event, it M-2 for the four-month period that would not be possible to make reli- would be within the ranges that had able estimates of the sources of been tentatively adopted for 1982, funds flowing into such accounts. partly with a view to avoiding any The remaining aggregate for M-l in possible misunderstanding of the 1982 will be the one formerly labeled Committee's objectives in the period M-1B, which includes the total before completion of the review of amount of NOW accounts. its growth ranges for 1982. Other In the near-term pursuit of the members stressed the importance of fundamental objective of fostering avoiding an abrupt deceleration of the financial conditions that would monetary growth in the first quarter help to reduce inflation and promote of 1982, particularly if accompanied recovery in economic activity on a by upward interest rate pressures, sustainable basis, the Committee because such developments might continued to face considerable Un- well hamper recovery in economic certainty about the interpretation of activity. A number of members were the behavior of the monetary aggre- willing to accept relatively rapid gates. Growth of other checkable growth in the period ahead, to the deposits (OCD) had picked up sharp- extent that it reflected a continuation ly in November and early Decem- of the recent behavior of other ber. (Such deposits include NOW checkable deposits and thus might accounts and ATS accounts at banks reflect expansion in its sizable savand thrift institutions and credit ings component. union share draft accounts.) More- At the conclusion of the discus- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 109 sion, the Committee decided to seek year. Short-term market interest rates behavior of reserve aggregates asso- and bond yields continued to decline in the latter part of November, but since ciated with growth of M-l and M-2 then they have risen to levels generally from November 1981 to March 1982 higher than those of mid-November; at annual rates of around 4 to 5 over the period since mid-November, percent and around 9 to 10 percent mortgage interest rates have declined further. On December 3 the Board of respectively. In setting the objective Governors announced a reduction in for M-l, the Committee took ac- Federal Reserve basic discount rates count of the relatively rapid growth from 13 to 12 percent. that had already taken place through The Federal Open Market Committee the first part of December. It also seeks to foster monetary and financial conditions that will help to reduce inflarecognized that interpretation of action, promote a resumption of growth in tual money growth might need to output on a sustainable basis, and contake account of the significance of tribute to a sustainable pattern of interfluctuations in NOW accounts, national transactions. At its meeting in early July, the Committee agreed that its which recently had been growing objectives would be furthered by reafrelatively rapidly. The intermeeting firming the monetary growth ranges for range for the federal funds rate that the period from the fourth quarter of provides a mechanism for initiating 1980 to the fourth quarter of 1981 that it had set at the February meeting. These consultation of the Committee was ranges included growth of V/2 to 6 perset at 10 to 14 percent. cent for M-1B, abstracting from the im- The following domestic policy di- pact of flows into NOW accounts on a rective was issued to the Federal nationwide basis, and growth of 6 to 9 percent and 6V2 to 9Vi percent for M-2 Reserve Bank of New York: and M-3 respectively. The Committee recognized that the shortfall in M-1B The information reviewed at this meetgrowth in the first half of the year partly ing suggests that real GNP declined apreflected a shift in public preferences preciably in the fourth quarter and that toward other highly liquid assets and that prices on the average rose less rapidly growth in the broader aggregates had than over the first three quarters of the been running at about or somewhat year. In November industrial production above the upper end of their ranges. In fell more than in preceding months; non- light of its desire to maintain moderate farm payroll employment, especially in growth in money over the balance of the manufacturing, declined sharply further; year, the Committee expected that and the unemployment rate rose an addi- growth in M-1B for the year would be tional 0.4 percentage point to 8.4 per- near the lower end of its range. At the cent. The nominal value of retail sales same time, growth in the broader aggreincreased, but the level was still well gates might be high in their ranges. The below the average for the third quarter. associated range for bank credit was 6 to Housing starts remained at a depressed 9 percent. The Committee also tentativelevel. The rise in the index of average ly agreed that for the period from the hourly earnings has been somewhat less fourth quarter of 1981 to the fourth quarrapid this year than during 1980. ter of 1982 growth of M-l, M-2, and M-3 The weighted average value of the within ranges of 2Vz to 5¥i percent, 6 to 9 dollar against major foreign currencies percent, and 6V2 to W2 percent respechas changed little on balance since mid- tively would be appropriate. November. The U.S. foreign trade deficit in October widened substantially In the short run, the Committee seeks from the unusually low rate in Septem- behavior of reserve aggregates consistber, and the average for the two months ent with growth of M-l and M-2 from was about the same as that for July and November 1981 to March at annual rates August. of around 4 to 5 percent and 9 to 10 M-1B (adjusted for estimated shifts percent respectively. The target for M-l into NOW accounts) expanded substan- no longer reflects the "shift-adjustment" tially in November and early December, for conversion of outstanding interestbut its level in November was still well bearing assets into new NOW accounts, below the lower end of the Committee's formerly estimated in the "shift-adjustrange for growth over the year from the ed" M-1B series. In setting the M-l fourth quarter of 1980 to the fourth quar- target the Committee took account of the ter of 1981. Growth of M-2 accelerated relatively rapid growth that had already sharply in November, raising its level taken place through the first part of above the upper end of its range for the December; it also recognized that inter- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

110 Federal Reserve Bulletin • February 1982 pretation of actual money growth may avoiding a possible interpretation need to take account of the significance that the Committee had implicitly of fluctuations in NOW accounts, which raised its objective before complehave recently been growing relatively tion of the current review of the rapidly. The Chairman may call for Committee consultation if it appears to the growth ranges for 1982. Manager for Domestic Operations that pursuit of the monetary objectives and related reserve paths during the period before the next meeting is likely to be 2. Authorization for Domestic associated with a federal funds rate per- Open Market Operations sistently outside a range of 10 to 14 percent. At this meeting the Committee voted to increase from $3 billion Votes for this action: Messrs. to $4 billion the limit on changes Volcker, Boehne, Corrigan, Gramley, Keehn, Partee, Rice, Schultz, Mrs. between Committee meetings in Teeters, and Mr. Wallich. Votes System Account holdings of U.S. against this action: Messrs. Solomon government and federal agency seand Boy kin. curities specified in paragraph 1(a) of the authorization for domestic open Mr. Solomon dissented from this market operations, effective immediaction because he felt it was particuately for the period ending with the larly important at the beginning of an close of business on February 2, annual target period that the Com- 1982. mittee not formulate its directive in terms that conveyed an unrealistic Votes for this action: Messrs. sense of precision. In his view, the Volcker, Solomon, Boehne, Boykin, Corrigan, Gramley, Keehn, Partee, directive language referring to the Rice, Schultz, Mrs. Teeters, and Mr. November-to-March growth rates in Wallich. Votes against this action: M-l and M-2 did seem to convey None. such a sense. Mr. Boykin dissented from this This action was taken on recomaction because he favored specifica- mendation of the Manager for Dotion of somewhat lower rates for mestic Operations. The Manager growth in the monetary aggregates had advised that substantial net sales from November to March. For M-2 of securities were likely to be rein particular, he stressed the desir- quired during January in order to ability of specifying a rate no higher absorb reserves that had been prothan the range of 6 to 9 percent that vided over recent weeks to meet had earlier been tentatively adopted seasonal needs for currency in circufor growth over 1982, with a view to lation. Records of policy actions taken by the Federal Open Market Committee at each meeting, in the form in which they will appear in the Board's Annual Report, are made available a few days after Digitized for FRASER the next regularly scheduled meeting and are later published in the BULLETIN. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Ill Legal Developments AMENDMENT TO REGULATION C ber 1, 1982, the mandatory effective date for compliance with simplified Regulations Z and M and the The Board of Governors of the Federal Reserve Sys- expiration of pre-simplification Regulation Z (12 CFR tem has published the final version of its HMDA-1 Part 226), appendices, supplements, Board and staff disclosure and reporting form, required under the interpretations, and state exemptions. The April 1, Home Mortgage Disclosure Act. This format is to be 1981, effective date for optional compliance with simused by all depository institutions covered by Regula- plified Regulations Z and M as described in 46 FR tion C for reporting their mortgage and home improve- 20848 (April 7, 1981) remains unchanged. ment loan data, beginning with data for the calendar 2. The Board amends simplified Regulation Z year 1981. The form constitutes Appendix C to Regu- (12 CFR Part 226) as described in 46 FR 20848 (April 7, lation C (12 CFR 203), and was effective December 31, 1981) by changing the date in footnote 31a to § 226.14 1981. and footnote 45a to § 226.22 from "April 1, 1982," to Copies of the form will be made available to all state "October 1, 1982." member banks of the Federal Reserve System through 3. The Board delays from April 1, 1982, to October 1, the Federal Reserve Banks. The form will be made 1982, rescission of § 226.5 (b) through (e), Board available to all other depository institutions through Interpretations §§ 226.502, 226.503 and 226.505, and the nearest regional office of their federal supervisory Supplement I to pre-simplification Regulation Z agency—the Federal Home Loan Bank Board, the (12 CFR Part 226), as described in 44 FR 77139 Comptroller of the Currency, the Federal Deposit (December 31, 1979) and 45 FR 56795 (August 26, Insurance Corporation, or the National Credit Union 1980). The January 10, 1980, effective date for revi- Administration. sions to § 226.5 and Supplement I, and new § 226.8 (r) and (s) remains unchanged. AMENDMENTS TO REGULATIONS M AND Z The Board of Governors of the Federal Reserve Sys- AMENDMENTS TO REGULATION Q tem is deferring until October 1, 1982, the mandatory effective date for compliance with Regulation M (Con- The Board of Governors of the Federal Reserve Syssumer Leasing) (12 CFR 213), and revised Regulation tem, acting through its Secretary, pursuant to delegat- Z (Truth in Lending) (12 CFR 226), which implement ed authority, has suspended temporarily the Regulathe Truth in Lending Simplification and Reform Act. tion Q penalty for the withdrawal of time deposits Although the revised regulations became effective on prior to maturity from member banks for depositors April 1, 1981, compliance originally was not required affected by severe storms, mud slides, high tides, and until April 1, 1982. In the interim, creditors were given flooding in the California counties of Contra Costa, a transition period during which they could comply Marin, San Mateo, Santa Cruz, and Sonoma. with either the revised regulations or the previous This action will be retroactive to January 7, 1982 for Regulation Z. On December 26, 1981, the President the designated counties and will remain in effect until signed into law an amendment to the Truth in Lending 12 midnight July 7, 1982. Simplification and Reform Act delaying the mandatory effective date for six months until October 1, 1982. Part 217—Interest on Deposits Pursuant to this new statutory mandate, the Board is deferring the mandatory effective date for compliance Section 217.4—[Amended] with its revised regulations and continuing the transition period until October 1, 1982. The application of § 217.4(d) is temporarily suspended Effective December 31, 1981, the Board amends its for the withdrawal of time deposits prior to maturity regulations as follows: from member banks for depositors affected by severe 1. The Board delays from April 1, 1982, to Octo- storms, mud slides, high tides, and flooding in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

112 Federal Reserve Bulletin • February 1982 California counties of Contra Costa, Marin, San Ma- (i) Purpose credit secured by margin securities and teo, Santa Cruz, and Sonoma. other collateral. A lender may extend credit for the purpose of purchasing or carrying margin securities On January 25, 1982, the Board acted to expand the secured by collateral other than margin securities, original Order to include additional counties in Califor- and, in the case of such credit, the maximum loan nia as follows: value of the collateral shall be as determined by the Effective January 9, 1982 for Solano County; Janu- lender in good faith. ary 12, 1982 for Humbolt County; and January 15, 1982 for the counties of Alameda, San Joaquin, and Santa Clara. B. Section 207.2 of Regulation G is amended by revising § 207.2(i) to read as follows: AMENDMENTS TO REGULATIONS G, T, AND U Section 207.2—Definitions The Board of Governors of the Federal Reserve System has decided to amend portions of Regulations G, (i) Indirectly secured. The term "indirectly secured" T, and U (12 CFR Parts 207, 220, and 221) at this time includes any arrangement with the customer under to grant relief and flexibility in areas where the com- which the customer's right or ability to sell, pledge, or ments on the Board's proposed major revision of the otherwise dispose of margin securities owned by the regulations disclosed no substantial disagreement with customer is in any way restricted as long as the credit the Board's proposals, and the amendments can be remains outstanding or under which the exercise of adopted without substantial modification of the word- such right is or may be cause for acceleration of the ing of the existing regulations. maturity of the credit. Effective February 15, 1982, the Board amends The foregoing shall not apply: Regulation G (12 CFR 207) as follows: (1) If, following application of the proceeds of the credit, not more than 25 per cent of the value of the Part 207 assets subject to the arrangement, as determined by any reasonable method, are margin securities; Securities Credit by Persons Other than Banks, (2) To a lending arrangement that permits accelera- Brokers, or Dealers tion of the maturity of the credit as a result of a default under, or the renegotiation of the terms of, A. Section 207.1 of Regulation G is amended by another credit to the same customer by another revising paragraphs (h) and (i). lender that is not an affiliate* of the G-lender; or Existing paragraphs (h) and (i) are removed and the (3) If the margin securities are held by the lender following new paragraphs (h) and (i) are added: only in the capacity of custodian, depositary, or trustee, or under similar circumstances, and the Section 207.1—General rule lender in good faith has not relied upon such margin securities as collateral in the extension or maintenance of the particular credit. (h) Purpose and nonpurpose credit extended to the same customer. (1) The lender shall identify all the collateral used to meet the requirements of § 207.1(c) (the entire credit Section 207.5—[Amended] being considered a single credit and collateral being similarly considered) and shall not cancel the identi- C. Section 207.5—Supplement, is amended by changfication of any portion thereof except in circum- ing the existing 70 per cent retention requirement to 50 stances that would permit the withdrawal of that per cent in § 207.5(c) and changing the existing 30 per portion. Such identification may be made by any cent minimum equity ratio to zero per cent in reasonable method. § 207.5(f). (2) For any credit extended to the same customer that is not subject to § 207.1(c) the lender shall in Effective February 15, 1982, the Board amends good faith require as much collateral not so identi- Regulation T (12 CFR 220) as follows: fied as would be required (if any) if the lender held neither the indebtedness subject to § 207.1(c) nor *For this purpose the term "affiliate" shall mean a person that directly, or indirectly through one or more intermediaries, controls, or the identified collateral. is controlled by, or is under common control with the lender. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 113 Part 220 F. Sections 221.1, 221.3, and 221.4 are amended by adding the word "margin" before the word "stock" in Credit by Brokers and Dealers the following paragraphs: Sections 221.1(a), (b), and (c); 221.3(a), (m), (p), (q), D. Section 220.7 of Regulation T is amended by (r)(2), (s), and (t)(4); 221.4(a) and (c) of Regulation U revising § 220.7(a) to read as follows: are amended by adding the word "margin" before the word "stock" in every place that it appears. Section 220.7—Miscellaneous provisions G. Section 221.3 of Regulation U is amended by (a) Arranging for loans by others. A creditor may not revising § 221.3(c) to read as follows: arrange for the extension or maintenance of credit to or for any customer by any person upon terms and Section 221.3—Miscellaneous Provisions conditions other than those upon which the creditor may himself extend or maintain under the provisions of this Part, except that this limitation shall not apply (c) Indirectly secured. The term "indirectly secured" to credit arranged for a customer which does not includes any arrangement with the customer under violate Parts 207 and 221 of this chapter and results which the customer's right or ability to sell, pledge, or solely from: otherwise dispose of margin stock owned by the (1) Investment banking services, provided by the customer is in any way restricted as long as the credit creditor to the customer, including, but not limited remains outstanding or under which the exercise of to underwritings, private placements, and advice such right is or may be cause for acceleration of the and other services in connection with exchange maturity of the credit. offers, mergers and acquisitions, except for under- The foregoing shall not apply: writings that involve the public distribution of an (1) If, following application of the proceeds of the equity security with installment or other deferred credit, not more than 25 per cent of the value of the payment provisions; or assets subject to the arrangement, as determined by (2) The sale of non-margin securities with install- any reasonable method, are margin stock; ment or other deferred payment provisions if the (2) To a lending arrangement that permits accelerasale is exempted from the registration requirements tion of the maturity of the credit as a result of a of the Securities Act of 1933 under section 4(2) or default under, or the renegotiation of the terms of, section 4(6) of the Act (15 U.S.C. 77(d) (2) and (6)). another credit to the same customer by another lender that is not an affiliate1 of the bank; or (3) If the margin stock is held by the bank only in the capacity of custodian, depositary, or trustee, or Section 220.8—[Amended] under similar circumstances, and the bank in good faith has not relied upon such margin stock as E. Section 220.8—Supplement is amended by chang- collateral in the extension or maintenance of the ing the existing 70 per cent retention requirement to 50 particular credit. per cent in § 220.8(e) (1), (3), and (4) and by changing the existing 70 per cent maximum loan value to 100 per Section 221.4—[Amended] cent in § 220.8(g)(1) and the existing 30 per cent margin to zero per cent margin in § 220.8(g)(2). H. Section 221.4—Supplement is amended by changing the existing 70 per cent retention requirement to 50 Effective February 15, 1982, the Board amends per cent in § 221.4(c) and changing the existing 30 per Regulation U (12 CFR Part 221), except for the amend- cent minimum equity ratio to zero per cent in ment to exempt from quantitative limitation bank § 221.4(f). credit which is not secured by margin stock. The effective date of that amendment is March 31, 1982. Part 221 'For this purpose the term "affiliate" shall mean a bank holding company of which the bank is a subsidiary within the meaning of the Credit by Banks for the Purpose of Purchasing Bank Holding Company Act of 1956, as amended, or any other or Carrying Margin Stocks subsidiary of such bank holding company, or any other corporation, business trust, association or other similar organization which is an affiliate as defined in section 2(b) of the Banking Act of 1933 Sections 221.1, 221.3 and 221.4—[Amended] (12 U.S.C. 221a). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

114 Federal Reserve Bulletin • February 1982 BANK HOLDING COMPANY AND BANK MERGER (Panama), which is the third largest commercial bank ORDERS ISSUED BY THE BOARD OF GOVERNORS in Panama with total deposits of $524 million and total assets of $585 million. The sole asset of Sabrina is its Orders Under Section 3 of Bank Holding interest in Eagle which in turn holds only the voting Company Act shares of Bank. Bank, with total deposits of $56.9 million,3 holds 0.5 percent of market deposits and Banco de Columbia, S.A., ranks as the 37th largest of 69 banking organizations in Bogota, Columbia the greater Miami banking market (the relevant market).4 Inasmuch as Applicants conduct no banking Banco de Columbia, S.A., operations or other business in the United States, Panama, Panama consummation of the proposed transactions would have no adverse effects on existing or potential compe- Order Approving Formation of Bank Holding tition and would not increase the concentration of Companies resources in any relevant area. Therefore, competitive considerations are consistent with approval of the Banco de Colombia, S.A., Bogota, Colombia ("Banco applications. (Colombia)") and Banco de Colombia, S.A., Panama, The financial and managerial resources of Appli- Panama ("Banco (Panama)"), have applied for the cants, Sabrina, Eagle, and Bank are considered gener- Board's approval under section 3(a)(1) of the Bank ally satisfactory and their future prospects appear to Holding Company Act (12 U.S.C. § 1842(a)(1)) to be favorable. Thus, considerations relating to banking become bank holding companies by acquiring 100 factors are consistent with approval. Although conpercent of the voting shares of Sabrina Properties, summation of the proposal would not immediately Netherlands Antilles ("Sabrina"). Sabrina owns 100 result in any change in the banking services offered by percent of the voting shares of Eagle National Holding Bank, considerations relating to the convenience and Company, Miami, Florida ("Eagle"), a registered needs of the community to be served are consistent bank holding company by virtue of its ownership of 93 with approval. Accordingly, the Board has determined percent of the voting shares of Eagle National Bank that consummation of the transactions would be in the (formerly Central National Bank of Miami), Miami, public interest and that the applications should be Florida ("Bank"). approved. Notice of the applications, affording opportunity for On the basis of the record, the applications are interested persons to submit comments and views, has approved for the reasons summarized above. The been given in accordance with section 3(b) of the act. transactions shall not be made before the thirtieth The time for filing comments and views has expired calendar day following the effective date of this Order, and the Board has considered the applications and all or later than three months after the effective date of comments received in light of the factors set forth in this Order, unless such period is extended for good section 3(c) of the act (12 U.S.C. § 1842(c)).1 cause by the Board or by the Federal Reserve Bank of Banco (Colombia), with total deposits of $717 mil- Atlanta, pursuant to delegated authority. lion and total assets of $1.3 billion, is the largest By order of the Board of Governors, effective commercial banking organization in Colombia and January 20, 1982. provides a broad range of commercial banking services through 237 branches in Colombia.2 Banco (Co- Voting for this action: Chairman Volcker and Governors lombia) owns 70 percent of the voting shares of Banco Schultz, Wallich, Partee, Teeters, and Rice. Absent and not voting: Governor Gramley. (Signed) JAMES MCAFEE, 1. The Comptroller of Florida, by letter dated April 28, 1981, [SEAL] Assistant Secretary of the Board. requested that the Florida Attorney General issue an opinion as to the applicability of section 658.29 FSA to the acquisition of control of a national bank located in Florida by a non-United States bank. Although the Florida statute appears to prohibit the proposed acquisition, the Florida Attorney General stated, in a letter dated July 6, 1981, that he was "unable to conclude that [section 658.29 FSA] does in fact effectively prohibit the acquisition of ownership or control of a national bank located in Florida by a foreign (non-U.S.) bank." The Board concurs with this position, and, accordingly, has determined that section 658.29 FSA is not a bar to approval of the subject application. 3. As of June 30, 1980. 2. Unless otherwise noted, all banking data are as of December 31, 4. The greater Miami banking market is approximated by all of 1980. Dade and Broward Counties, Florida. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 115 Bancomer, S.A., market.3 Bancomer's nearest agency office to Bank is Mexico City, Mexico 115 miles away in the Los Angeles metropolitan banking market and Applicants control no other bank that Bancomer Holding Companies (Antilles) N.V., operates in the United States. In light of these facts, Netherland Antilles consummation of the proposed transaction apparently would have no adverse effects on existing or potential Bancomer Holding Company competition, and would not increase the concentration (Netherlands) B.V., of banking resources in any relevant area. Therefore, The Netherlands competitive considerations are consistent with approval of the applications. Bancomer Holding Company, The financial and managerial resources of Appli- San Diego, California cants and Bank are considered satisfactory and the future prospects for each appear favorable. Thus, Order Approving Formation of Bank Holding considerations relating to banking factors are consis- Companies tent with approval of the applications. Although consummation of the proposal would not immediately Bancomer SA., Mexico City, Mexico; Bancomer change the banking services offered by Bank, consid- Holding Company (Antilles) N.V. ("BHC Antilles"), erations relating to the convenience and needs of the Netherlands Antilles; Bancomer Holding Company community to be served are consistent with approval (Netherlands) B.V. ("BHC Netherlands"), The Neth- of the applications. Accordingly, the Board has detererlands; and Bancomer Holding Company ("BHC mined that consummation of the transaction would be California), San Diego, California, have applied for the in the public interest and that the applications should Board's approval under section 3(a)(1)) of the Bank be approved. Holding Company Act (12 U.S.C.§ 1842(a)(1)) to be- On the basis of the record, the applications are come bank holding companies through the acquisition approved for the reasons summarized above. The by BHC California of 100 percent of the voting shares transaction shall not be made before the thirtieth day of Grossmont Bank ("Bank"), La Mesa, California. following the effective date of this Order, or later than Notice of the applications, affording opportunity for three months after the effective date of this Order, interested persons to submit comments and views, has unless such period is extended for good cause by the been given in accordance with section 3(b) of the act. Board or by the Federal Reserve Bank of San Francis- The time for filing comments and views has expired co, pursuant to delegated authority. and the Board has considered the applications and all By order of the Board of Governors, effective comments received in light of the factors set forth in January 18, 1982. section 3(c) of the act. Bancomer, with total assets of $14.6 billion, is the Voting for this action: Chairman Volcker and Governors largest commercial banking organization in Mexico Schultz, Wallich, Partee, Rice, and Gramley. Absent and not voting: Governor Teeters. and offers a broad range of banking services through more than 650 branches in that country.1 Bancomer operates banking agencies in New York and Los (Signed) JAMES MCAFEE, Angeles, and conducts no direct or indirect nonbank- [SEAL] Assistant Secretary of the Board. ing activities in the United States. BHC Antilles, BHC Netherlands, and BHC California are nonoperating wholly-owned subsidiary companies of Bancomer, or- Dickey County Bancorporation, ganized for the purpose of becoming bank holding Ellendale, North Dakota companies. Upon acquisition of Bank, Applicants would control the 72nd largest banking organization in Order Approving Formation of a Bank Holding California with 0.07 percent of the total deposits in Company commercial banks in the state.2 Bank, with deposits of about $93.1 million, is the Dickey County Bancorporation, Ellendale, North Da- 11th largest of 33 banking organizations in the San kota, has applied for the Board's approval under Diego metropolitan banking market and holds 1.6 section 3(a)(1) of the Bank Holding Company Act percent of total deposits in commercial banks in that (12 U.S.C. § 1842(a)(1)) of formation of a bank holding 1. Data are as of December 31, 1980. 3. The San Diego metropolitan banking market is approximated by 2. Bank data are as of June 30, 1981. the San Deigo RMA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

116 Federal Reserve Bulletin • February 1982 company by acquiring 98.3 percent of the voting Board's multi-bank holding company standards. shares of The First National Bank and Trust Company Based upon such analysis in this case, the financial of Ellendale, Ellendale, North Dakota ("Bank"). and managerial resources and future prospects of Notice of the application, affording opportunity for Applicant, Bank, and the affiliated bank appear to be interested persons to submit comments and views, has satisfactory. Although Applicant will incur debt in been given in accordance with section 3(b) of the act. connection with the proposal, it appears that Appli- The time for filing comments and views has expired, cant will be able to service the debt without adversely and the Board has considered the application and all affecting the financial condition of Bank. Accordingly, comments received in light of the factors set forth in the financial and managerial factors are consistent section 3(c) of the act. with approval of the application. Applicant, a nonoperating corporation with no sub- Since acquiring control of Bank in 1970, Applicant's sidiaries, was organized for the purpose of becoming a principals have expanded Bank's lending to its combank holding company by acquiring Bank. Upon ac- munity. Applicant intends to assist Bank in increasing quisition of Bank, Applicant would control the 29th the availability of credit in its local community. Conselargest commercial bank in North Dakota, with 0.6 quently, convenience and needs factors lend some percent of the total deposits in commercial banks in weight toward approval of this application. Based on the state.1 the foregoing and other considerations reflected in the Bank holds deposits of $22.1 million, representing record, the Board's judgment is that the proposed approximately 7.3 percent of the total deposits in acquisition is in the public interest and that the applicommercial banks in the Aberdeen banking market2 cation should be approved. and is the fourth largest of seven banks in the relevant On the basis of the record, the application is apmarket.3 This proposal involves a restructuring of proved for the reasons summarized above. The trans- Bank's ownership from individuals to a corporation action shall not be consummated before the thirtieth owned by the same individuals. Applicant's principals calendar day following the effective date of this Order, are also principals of another bank, The First National or later than three months after the effective date of Bank of Oakes, Oakes, North Dakota, located in a this Order, unless such period is extended for good separate banking market.4 Accordingly it appears from cause by the Board, or by the Federal Reserve Bank of the facts of record that consummation of the proposal Minneapolis, pursuant to delegated authority. would not result in any adverse effects upon competi- By order of the Board of Governors, effective tion in any relevant area. Thus, competitive consider- January 13, 1982. ations are consistent with approval. Where principals of an applicant are engaged in Voting for this action: Chairman Volcker and Governors operating a chain of banking organizations, the Board, Schultz, Partee, Teeters, Rice, and Gramley. Absent and not voting: Governor Wallich. in addition to analyzing the bank holding company proposal before it, also considers the total chain and analyzes the financial and managerial resources and (Signed) JAMES MCAFEE, future prospects of the chain within the context of the [SEAL] Assistant Secretary of the Board. 1. Data are as of June 30, 1981. Orders Under Sections 3 and 4 of Bank 2. The Aberdeen banking market is approximated by Brown Coun- Holding Company Act ty, South Dakota; and the town of Ellendale in Dickey County, North Dakota. 3. The deposit data for Bank in the Aberdeen banking market are as BankEast Corporation, of June 30, 1980. Manchester, New Hampshire 4. Applicant has proposed that the competitive consequences of consummation of this proposal should be analyzed in two alternative geographic markets. The first proposed market would place Bank and Order Approving Merger of Bank Holding First National Bank of Oakes in separate geographic markets that would be approximated by the banks' respective service areas. Companies and Acquisition of Rochester Savings Although the respective service areas of the banks involved in the Bank and Trust Company proposed transaction are among the factors that the Board considers in determining the relevant geographic market, the Board does not consider such service areas to be dispositive. See, Welch Bancshares, BankEast Corporation, Manchester, New Hampshire 66 FEDERAL RESERVE BULLETIN 789 (1980). The second geographic ("BankEast") (formerly First Financial Group of New market proposed by Applicant would place Bank and First National Bank of Oakes in the same geographic market, which would include a Hampshire, Inc.), a bank holding company within the fourteen county area (representing more than 9,000 square miles) of meaning of the Bank Holding Company Act, has North Dakota and South Dakota. However, the Board has not applied for the Board's approval under section 3(a)(3) accepted this market definition because it is not supported by the facts of record. of the Bank Holding Company Act (12 U.S.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 117 § 1842(a)(5)) to merge with Heritage Banks, Inc., bank deposits by only 0.7 percent, and would not alter Rochester, New Hampshire ("Heritage") (formerly its state-wide rank. Profile Bancshares, Inc.), under the charter and name Heritage's subsidiary bank operates in the Portsof BankEast. mouth-Dover-Rochester banking market3 and is the BankEast has also applied for the Board's approval, second largest depository organization in the market, under section 4(c)(8) of the Bank Holding Company holding 11.1 percent of total deposits in the market. Act (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of BankEast does not currently operate in the Portsthe Board's Regulation Y (12 C.F.R. § 225.4(b)(2)), to mouth-Dover-Rochester banking market through eiacquire Heritage's guaranty savings bank subsidiary, ther its commercial banking subsidiaries or its guaran- Rochester Savings Bank and Trust Company, Roches- ty savings bank. Thus, consummation of the proposal ter, New Hampshire ("Rochester Savings Bank"), would not eliminate any existing competition between and thereby engage in the activity of operating a New BankEast and Heritage. Moreover, consummation Hampshire guaranty savings bank. The Board has would not have any significant effects on potential previously approved applications from New Hamp- competition because the Portsmouth-Dover-Rochester shire bank holding companies to acquire New Hamp- banking market is not a concentrated market, because shire guaranty savings banks, determing that the oper- numerous other potential entrants exist, and because ation of such an institution was closely related to the market is not regarded as attractive for de novo banking in New Hampshire.1 However, the operation entry or branching. of a New Hampshire guaranty savings bank has not The financial and managerial resources and future been added by the Board to the list of permissible prospects of BankEast and its subsidiaries, as well as activities for bank holding companies in section Heritage and its subsidiaries, are regarded as satisfac- 225.4(a) of Regulation Y (12 C.F.R. § 225.4(a)). The tory. Therefore, the Board regards banking factors as Board has instead chosen to consider whether the being consistent with approval. operation of a guaranty savings bank is an activity The proposed acquisition by BankEast will enable closely related to banking on a case-by-case basis. Heritage to offer additional retail banking services to Notice of these applications, affording opportunity its customers, through access to BankEast's ATM for interested persons to submit comments and views network. In addition, BankEast intends to cause Herihas been duly published. No comments have been tage to offer free NOW accounts to senior citizens, to received and the time for filing comments has expired. provide trust services to its customers, and to offer The Board has considered the applications in light of advisory services to municipalities. Accordingly, the the factors set forth in section 3(c) of the Bank Holding Board's view is that the considerations relating to Company Act (12 U.S.C. § 1842(c)) and the consider- convenience and needs lend weight toward approval of ations specified in section 4(c)(8) of the act (12 U.S.C. the merger. § 1843(c)(8)). BankEast has also applied to acquire Rochester BankEast, the third largest banking organization in Savings Bank, Heritage's guaranty savings bank sub- New Hampshire, controls three commercial banking sidiary. As discussed above, the Board previously subsidiaries with aggregate deposits of approximately approved by Order applications by both Heritage and $216.7 million, representing 8.0 percent of total com- BankEast to engage in operating guaranty savings mercial bank deposits in the state.2 BankEast also banks in New Hampshire. In these prior applications controls a guaranty savings bank, BankEast Guaranty by BankEast and Heritage, the Board determined that Savings Bank, Salem, New Hampshire ("BankEast operation of a guaranty savings bank is closely related Savings Bank"), and a mortgage company. Heritage, to banking in New Hampshire, stating that guaranty the thirty-first largest banking organization in New savings banks offer services that are similar to those Hampshire, controls one commercial banking subsid- offered by commercial banks.4 In that Order, the iary with $19.2 million in deposits, representing 0.7 percent of the total commercial bank deposits in the state. Consummation of the proposed merger would 3. The Portsmouth-Dover-Rochester banking market is approxiincrease BankEast's share of state-wide commercial mated by the Portsmouth-Dover-Rochester SMSA, plus the towns of Nottingham, Strafford, New Durham, Brookfield, Middleton, Milton, and Wakefield, all in New Hampshire, and Lebanon, Maine. 4. Guaranty savings banks are similar to mutual savings banks 1. Profile Bankshares, Inc., 61 FEDERAL RESERVE BULLETIN 901 except guaranty savings banks are stock corporations and mutual (1975); Heritage Banks, Inc., 66 FEDERAL RESERVE BULLETIN 590 savings banks are non-stock corporations. Guaranty savings banks (1980) ("Heritage I"); First Financial Group of New Hampshire, Inc., offer services essentially similar to those offered by mutual savings 66 FEDERAL RESERVE BULLETIN 594 (1980); Heritage Bank, Inc., 66 bank. Moreover, each of the main customer services offered by FEDERAL RESERVE BULLETIN 917 (1980) ("Heritage II"). guaranty savings banks (accepting time and savings deposit, acting as 2. Financial information as of June 30, 1981. Market share informa- fiduciary, and dealing in real estate mortgage financing) are generally tion as of June 30, 1980. offered by commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

118 Federal Reserve Bulletin • February 1982 Board also noted that guaranty savings banks are The Board also found that the same problem arises unique to New Hampshire, and that three of the six when the two institutions are not paired at the same guaranty savings banks in New Hampshire have his- location but when they are located close to one torically been affiliated with commercial banks. Inas- another or operate in close mutual support. much as there is no evidence that banking conditions Because of the Board's concern over the adverse have substantially changed in New Hampshire since effects of tandem operations, the Board imposed certhe Board last considered this issue in 1980,5 and tain conditions with respect to tandem operations in inasmuch as BankEast proposes no substantial approving BankEast's and Heritage's acquisition of changes in the operation of Rochester Savings Bank, guaranty savings banks. Under those conditions, the Board confirms its finding that the operation of a BankEast may not shift assets between, or establish guaranty savings bank is closely related to banking in joint locations of its subsidiary bank and its subsidiary New Hampshire. guaranty savings bank. Heritage may not establish an BankEast's proposal to acquire Rochester Savings office of its subsidiary bank at the Wakefield branch of Bank should have no significant adverse effects, either its subsidiary, Rochester Savings Bank. In the Board's existing or potential. Rochester Savings Bank operates view, approval of the proposed merger of BankEast in the Portsmouth-Dover-Rochester market while and Heritage would not affect the applicability of those BankEast's guaranty savings bank subsidiary operates conditions. in a separate market. No existing competition will be In connection with the proposal, the Board is coneliminated and neither does it appear that potential cerned that, although the present proposal would not competition will be eliminated. Therefore, competitive result in the opening of any additional offices, the considerations are consistent with approval. potential for expansion of tandem operations exists. In the previous applications by BankEast and Heri- For example, BankEast's subsidiary bank could, contage, the Board noted the potential for serious con- sistent with the existing Board-imposed conditions and flicts of interests and possible unfair competition in the without Board approval, establish a bank office at a affiliation of commercial banks and thrift institutions, branch of Heritage's guaranty savings bank, or assets which arises from the operation of the two types of and liabilities could be shifted from BankEast's cominstitutions at the same location ("tandem opera- mercial bank subsidiary to Heritage's subsidiary, tions"). When it approved BankEast's application to Rochester Savings Bank. The Board believes that the acquire its guaranty savings bank subsidiary in 1980, circumstances that caused the Board concern over the Board found that the establishment of a guaranty tandem operations in New Hampshire have not been savings bank, authorized by Federal law to pay a altered, and that failure to restrict tandem operations higher rate of interest than commercial banks, at the in connection with this application might permit evasame location as a commonly controlled commercial sion of the existing conditions restricting tandem operations.6 The Board's Regulation Q has not been rebank, would subvert the purpose of the interest rate scinded and banks currently must wait until 1986 until differential. So far as the public's perception is conthe interest rate differential is removed. cerned, these ostensibly competing institutions would have a range of powers that neither Congress nor the If, in fact, the question of tandem operation is New Hampshire legislature has conferred on any removed from consideration in this case, based on the single institution. In the Depository Institutions record, the Board believes the balance of public inter- Deregulation Act of 1980, Congress has, in effect, est factors it is required to consider under section prescribed that commercial banks wait for the elimination of the differential in 1986. The Board found that a 6. The Board notes that BankEast has indicated its belief that bank holding company must present compelling public certain developments have altered the adverse effects the Board found with respect to the circumvention of the interest rate differential. In benefits under the act in order to justify indirectly particular, BankEast points to a recent staff study concerning bank avoiding that waiting period for its commercial bank holding company acquisition of thrift institutions as being inconsistent with a policy that continues to restrict tandem operations after such subsidiaries through an artificial device that, in the acquisition. The Board does not believe that this assumption is Board's judgment, will entail the clear potential for warranted, and notes that although the staff's thrift study did not serious conflicts of interests and unfair competition. specifically address the problems of evasion of Regulation Q, it did take note that problems in this area might occur but could be dealt with under existing authority. BankEast also argues that in light of current economic conditions, maintenance of the interest rate differ- 5. While a recently enacted state law authorizes guaranty savings ential may not be effective to carry out its intended purposes. banks to offer demand deposits and make a limited amount of However, the Board notes that Regulation Q remains in effect and that commercial loans, BankEast and Heritage have assured the Board the conditions cited by BankEast, existed in 1980 when the Board that their guaranty savings bank subsidiaries do not presently conduct determined that it was necessary to limit tandem operations. Similarsuch activities and have no intention of conducting such activities in ly, BankEast's argument that tandem operation furthers the purpose the near future. Accordingly, the Board has relied on these assurances of Regulation Q by channeling deposits into the thrift institution is not in acting on this application under Section 4 of the act. persuasive. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 119 4(c)(8) is favorable. These public benefits, however, discussed above. The subject merger shall not be made are not sufficient to outweigh the adverse effects the before the thirtieth calendar day following the effective Board believes could result from the establishment of date of this Order; and neither the subject merger, nor tandem relationships between BankEast's subsidiary the acquisition of Rochester Savings Bank shall be commercial banks and BankEast's subsidiary guaran- made later than three months after the effective date of ty savings banks. this Order, unless such period is extended for good Accordingly, the Board's approval of this applica- cause by the Board or by the Federal Reserve Bank of tion is conditional on the following: that after approv- Boston, pursuant to delegated authority. The determial, BankEast will not establish any additional commer- nation as to BankEast's acquisition of Rochester Savcial bank facilities within the service area of any office ings Bank is subject to the conditions set forth above of BankEast's guaranty savings bank subsidiaries and to the conditions set forth in 225.4(c) of Regulation without the Board's consent; that BankEast will not Y (12 C.F.R. § 225.4(c)) and to the Board's authority shift assets and liabilities from either of its guaranty to require such modifications or termination of the savings bank subsidiaries to any other subsidiary; and activities of a holding company or any of its subsidiaradvertising at the Wakefield branch of Rochester ies as the Board finds necessary to assure compliance Savings Bank and the Salem Office of BankEast with the provisions and purposes of the act and the Savings Bank will mention only the services available Board's regulations and Order issued thereunder, or to at these offices.7 prevent evasion thereof. On the basis of all facts of record, the applications to By Order of the Board of Governors, effective merge Heritage with and into BankEast and to acquire January 28, 1982. Rochester Savings Bank are approved for the reasons Voting for this action: Chairman Volcker and Governors Schultz, Wallich, Partee, Teeters, Rice, and Gramley. 7. BankEast may apply to the Board for relief from these conditions and any other condition imposed in the Board's 1980 Orders when the interest rate differential is eliminated, or if the Board alters its general (Signed) JAMES MCAFEE, policy concerning tandem operations. [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 January 1982, 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) Bank Securities, Inc., First National Bank of Socorro, January 25, 1982 Albuquerque, New Mexico Socorro, New Mexico First Lafayette Bancorporation, First National Bank of Lafayette, January 5, 1982 Lafayette, Louisiana Lafayette, Louisiana Mercantile Texas Corporation, Greenway Bank & Trust of January 12, 1982 Dallas, Texas Houston, Houston, Texas Pee Dee Bancshares, Inc., Pee Dee State Bank, December 31, 1981 Timmonsville, South Carolina Timmonsville, South Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

120 Federal Reserve Bulletin • February 1982 Section 3—Continued Effective Applicant Bank(s) date Southwest Bancshares, Inc., The Mercantile National Bank of January 8, 1982 Houston, Texas Corpus Christi, Corpus Christi, Texas Preston State Bank, January 18, 1982 Dallas, Texas Republic State Bank, January 13, 1982 Houston, Texas Texas American Bancshares, Inc., North Austin State Bank, January 25, 1982 Fort Worth, Texas Austin, Texas By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies of the orders are available upon request to the Reserve Banks. Section 3 Reserve Effective Applicant Bank(s) Bank date Banks County Financial Corpora- Bank of Banks County, Atlanta January 15, 1982 tion, Homer, Georgia Homer, Georgia Brighton Bancshares, Inc., The First National Bank of Brigh- St. Louis January 4, 1982 Branson, Missouri ton, Brighton, Illinois Camp Grove Bancorp, Inc., Camp Grove State Bank, Chicago December 31, 1981 Camp Grove, Illinois Camp Grove, Illinois Cedar Bancorp, Bank of Hartington, Kansas City January 15, 1982 Hartington, Nebraska Hartington, Nebraska The Chase Manhattan Corp., The Chase Manhattan Bank New York January 12, 1982 New York, New York (USA), N.A., Wilmington, Delaware DeKalb Bancshares, Inc., The DeKalb Bank, Atlanta December 31, 1981 Crossville, Alabama Crossville, Alabama Ellettsville Bancshares, Inc., The Peoples State Bank, Chicago January 13, 1982 Ellettsville, Indiana Ellettsville, Indiana F. T. Bancshares, Inc., Farmers and Traders Bank of St. Louis January 15, 1982 Shelbyville, Kentucky Shelbyville, Shelbyville, Kentucky F&M Shares Corp., Farmers & Merchants Savings Chicago January 14, 1982 Eagle Grove, Iowa Bank, Manchester, Iowa Financial Dominion of Kentucky The Bank of North Hardin, St. Louis December 31, 1981 Corporation, Radcliff, Kentucky Radcliff, Kentucky First Coweta Corporation, The First National Bank of Kansas City January 15, 1982 Coweta, Oklahoma Coweta, Coweta, Oklahoma Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 121 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date First National Cincinnati Corpora- Second National Bank of Hamil- Cleveland January 21, 1982 tion, ton, Cincinnati, Ohio Hamilton, Ohio First Olathe Bancshares, Inc., First National Bank of Olathe, Kansas City January 14, 1982 Olathe, Kansas Olathe, Kansas First Seneca Corporation, First Seneca Bank and Trust Com- Cleveland January 13, 1982 Oil City, Pennsylvania pany, Butler, Pennsylvania Ephrata National Bank, Ephrata, Pennsylvania Nazerath National Bank, Nazerath, Pennsylvania Producers Bank and Trust Company, Bradford, Pennsylvania Union Bank and Trust Company of Pennsylvania, Bethlehem, Pennsylvania Greenview Banc Shares, Inc., Greenview Community Bank, Chicago January 13, 1982 Greenview, Illinois Greenview, Illinois Heights Bancshares, Inc., Heights Bank, Dallas January 14, 1982 Harker Heights, Texas Harker Heights, Texas Independent Community Banks, Winter Park National Bank, Atlanta January 4, 1982 Inc., Winter Park, Florida Sanibel, Florida Bank of the Islands, Sanibel-Captiva, Sanibel, Florida Kilgore First Bancorp., Inc., Kilgore First National Bank, Dallas January 19, 1982 Kilgore, Texas Kilgore, Texas Leeds Bancgroup, Inc., The Citizens Bank of Leeds, Atlanta January 18, 1982 Leeds, Alabama Leeds, Alabama Madison Financial Corporation, Madison National Bank of Niles, Chicago January 14, 1982 Chicago, Illinois Niles, Illinois First National Bank of Wheeling, Wheeling, Illinois Montrose County Bank Shares The Montrose County Bank, Kansas City January 15, 1982 Inc., Naturita, Colorado Crawford, Colorado Multi-Line, Inc., First Florida Banks, Inc., Atlanta January 18, 1982 Tampa, Florida Tampa, Florida St. James Bancorp., Inc., Citizens State Bank of St. James, Minneapolis January 15, 1982 St. James, Minnesota St. James, Minnesota Spiro Bancshares, Inc., Spiro State Bank, Kansas City January 20, 1982 Spiro, Oklahoma Spiro, Oklahoma TB&T Bancshares, Inc., Texas Bank and Trust of Browns- Dallas January 7, 1982 Brownsville, Texas ville, Brownsville, Texas Telluride Bank Shares, Inc., The Bank of Telluride, Kansas City January 15, 1982 Crawford, Colorado Telluride, Colorado Tonica Bancorp, Inc., Tonica State Bank, Chicago January 18, 1982 Tonica, Illinois Tonica, Illinois Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

122 Federal Reserve Bulletin • February 1982 Section 3—Continued Reserve Effective Applicant Bank(s) Bank date United Missouri Bancshares, Inc., City Bancshares, Inc., Kansas City January 13, 1982 Kansas City, Missouri Kansas City, Missouri City Bank and Trust Company of Kansas City, Kansas City, Missouri Valley Bancshares, Inc., The Valley National Bank, Dallas January 26, 1982 McAllen, Texas Mc Allen, Texas West Shore Bank Corporation, State Savings Bank of Scottville, Chicago December 31, 1981 Scottville, Michigan Scottville, Michigan Western Oklahoma Bancshares, Bank of Western Oklahoma, Kansas City January 7, 1982 Inc., Elk City, Oklahoma Elk City, Oklahoma Sections 3 and 4 Nonbanking Reserve Effective Applicant Bank(s) company Bank date (or activity) Climbing Hill Bancshares, Climbing Hill Savings general insurance Chicago January 12, 1982 Inc., Bank, activities in a Climbing Hill, Iowa Climbing Hill, Iowa town of less than 5,000 persons, Emmons Agency, Inc., First State Bank of to continue to en- Minneapolis January 15, 1982 Emmons, Minnesota Emmons, gage in operat- Emmons, Minnesota ing general insurance activities in a town of less than 5,000 persons, Solomon Bancshares, The Solomon State to continue to en- Kansas City December 23, 1981 Inc. Bank, gage in the sale Solomon, Kansas Solomon, Kansas of general insurance in a community of less than 5,000 population Section 4 Nonbanking Reserve Effective Applicant company Bank date (or activity) Deutsche Bank, AG, Credit Acquisition Corp., Port- New York January 20, 1982 Frankfurt, West Germany land, Oregon Freightliner Credit Corp., Portland, Oregon Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 123 Section 4—Continued Reserve Effective Applicant Bank(s) Bank date First Moore Bancshares, Inc., First Moore Insurance Agency, Kansas City January 7, 1982 Moore, Oklahoma Inc., Moore, Oklahoma Old Stone Corporation, Pacific-Southern Mortgage Boston January 26, 1982 Providence, Rhode Island Trust, San Diego, California Peoples Ban Corporation, Tellus Financial Services, Inc., San Francisco January 22, 1982 Seattle, Washington Seattle, Washington ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks . .. „ . Reserve Effective w Applicant Bank(s) Bank date DB Banking Co., The Dollar Savings and Trust Company, Cleveland January 7, 1982 Youngtown, Ohio Youngstown, Ohio PENDING CASES INVOLVING THE BOARD OF GOVERNORS* *This list of pending cases does not include suits Bank Stationers Association, Inc., et al. v. Board of against the Federal Reserve Banks in which the Board Governors, filed July 1981, U.S.D.C. for the Northof Governors is not named a party. ern District of Georgia. Public Interest Bounty Hunters v. Board of Gover- Darnell Hilliard v. Wilbert G. Cooper, filed January nors, et al., filed June 1981, U.S.D.C. for the 1982, Superior Court of the District of Columbia. Northern District of Georgia. First Lakefield BanCorporation, et al. v. Board of Edwin F. Gordon v. John Heimann, et al., filed May Governors, filed January 1982, U.S.D.C. for the 1981, U.S.C.A. for the Fifth Circuit. District of Minnesota. Louis J. Roussell v. Board of Governors, filed May C. A. Cavendes, Sociedad Financiers v. Board of 1981, U.S.C.A. for the District of Columbia. Governors, filed December 1981, U.S.C.A. for the Wilshire Oil Company of Texas v. Board of Gover- District of Columbia. nors, et al, filed April 1981, U.S.C.A. for the Third Option Advisory Service, Inc. v. Board of Governors, Circuit. filed December 1981, U.S.C.A. for the Second People of the State of Arkansas v. Board of Gover- Circuit. nors, et al, filed March 1981, U.S.C.A. for the Option Advisory Service, Inc. v. Board of Governors, Western District of Arkansas. filed September 1981, U.S.C.A. for the Second First Bank & Trust Company v. Board of Governors, Circuit. filed February 1981, U.S.D.C. for the Eastern Dis- American Bankers Association v. Federal Home Loan trict of Kentucky. Bank Board, et al., filed August 1981, U.S.D.C. for Ellis E. St. Rose & James H. Sibbet v. Board of the District of Columbia. Governors, filed February 1981, U.S.D.C. for the The National Bank of Davis, et al. v. Charles E. Lord, District of Columbia. et al., filed July 1981, U.S.C.A. for the Fourth Option Advisory Service, Inc. v. Board of Governors, Circuit. et al, filed February 1981, U.S.C.A. for the Second Circuit. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

124 Federal Reserve Bulletin • February 1982 9 to 5 Organization for Women Office Workers v. U.S. League of Savings Associations v. Depository Board of Governors, filed December 1980, Institutions Deregulation Committee, et al., filed U.S.D.C. for the District of Massachusetts. June 1980, U.S.D.C. for the District of Columbia. Securities Industry Association v. Board of Gover- Berkovitz, et al. v. Government of Iran, et al., filed nors, et al., filed October 1980, U.S.D.C. for the June 1980, U.S.D.C. for the Northern District of District of Columbia. California. Securities Industry Association v. Board of Gover- Mercantile Texas Corporation v. Board of Governors, nors, et al, filed October 1980, U.S.C.A. for the filed May 1980, U.S.C.A. for the Fifth Circuit. District of Columbia. Corbin, Trustee v. United States, filed May 1980, A. G. Becker, Inc. v. Board of Governors, et al., filed United States Court of Claims. October 1980, U.S.D.C. for the District of Colum- Louis J. Roussel v. Comptroller of the Currency and bia. Federal Reserve Board, filed April 1980, U.S.D.C. A. G. Becker, Inc. v. Board of Governors, et al., filed for the District of Columbia. October 1980, U.S.C.A. for the District of Colum- County National Bancorporation and TGB Co. v. bia. Board of Governors, filed September 1979, Independent Insurance Agents of America and Inde- U.S.C.A. for the Eighth Circuit. pendent Insurance Agents of Missouri v. Board of Donald W. Riegle, Jr. v. Federal Open Market Com- Governors, filed September 1980, U.S.C.A. for the mittee, filed July 1979, U.S.D.C. for the District of Eighth Circuit. Columbia. Nebraska Bankers Association, et al. v. Board of Security Bancorp and Security National Bank v. Governors, et al., filed September 1980, U.S.D.C. Board of Governors, filed March 1978, U.S.C.A. for for the District of Nebraska. the Ninth Circuit. Republic of Texas Corporation v. Board of Governors, Darnell Hilliard v. G. William Miller, et al., filed filed September 1980, U.S.C.A. for the Fifth Cir- September 1976, U.S.C.A. for the District of Cocuit. lumbia. A. G. Becker, Inc. v. Board of Governors, et al., filed Roberts Farms, Inc. v. Comptroller of the Currency, August 1980, U.S.D.C. for the District of Columbia. et al., filed November 1975, U.S.D.C. for the South- Otero Savings and Loan Association v. Board of ern District of California. Governors, filed August 1980, U.S.D.C. for the David Merrill, et al. v. Federal Open Market Commit- District of Colorado. tee, filed May 1975, U.S.D.C. for the District of Edwin F. Gordon v. Board of Governors, et al., filed Columbia. August 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 POLIC YINSTR UMENTS 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 A27 Interest rates in money and capital markets A28 Stock market—Selected statistics A29 Selected financial institutions—Selected assets FEDERAL RESERVE BANKS and 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 MONETARY 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

53 Federal Reserve Bulletin • February 1982 SECURITIES MARKETS AND International Statistics CORPORATE FINANCE A54 U.S. international transactions—Summary A36 New security issues—State and local A55 U.S. foreign trade governments and corporations A55 U.S. reserve assets A37 Open-end investment companies—Net sales and A56 Foreign branches of U.S. banks—Balance sheet asset position data A37 Corporate profits and their distribution A58 Selected U.S. liabilities to foreign official A38 Nonfinancial corporations—Assets and institutions liabilities A38 Total nonfarm business expenditures on new plant and equipment REPORTED BY BANKS IN THE UNITED STATES A39 Domestic finance companies—Assets and liabilities; business credit A58 Liabilities to and claims on foreigners A59 Liabilities to foreigners A61 Banks' own claims on foreigners REAL ESTATE A62 Banks' own and domestic customers' claims on foreigners A40 Mortgage markets A62 Banks' own claims on unaffiliated foreigners A41 Mortgage debt outstanding A63 Claims on foreign countries—Combined domestic offices and foreign branches CONSUMER INSTALLMENT CREDIT SECURITIES HOLDINGS AND TRANSACTIONS A42 Total outstanding and net change A43 Extension and liquidations A64 Marketable U.S. Treasury bonds and notes— Foreign holdings and transactions A64 Foreign official assets held at Federal Reserve FLOW OF FUNDS Banks A65 Foreign transactions in securities A44 Funds raised in U.S. credit markets A45 Direct and indirect sources of funds to credit markets REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES Domestic Nonfinancial Statistics A66 Liabilities to unaffiliated foreigners A67 Claims on unaffiliated foreigners A46 Nonfinancial business activity—Selected measures A46 Output, capacity, and capacity utilization INTEREST AND EXCHANGE RATES A47 Labor force, employment, and unemployment A48 Industrial production—Indexes and gross value A68 Discount rates of foreign central banks A50 Housing and construction A68 Foreign short-term interest rates A51 Consumer and producer prices A68 Foreign exchange rates A52 Gross national product and income A53 Personal income and saving A69 Guide to Tabular Presentation, Statistical Releases, and Special Tables Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Domestic Financial Statistics A3 1.10 MONETARY AGGREGATES AND INTEREST RATES 1981 1981 Item Qlr Q2' Q3r Q4r Aug.' Sept.r Oct.r Nov.' Dec. Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 Reserves of depository institutions 1 Total 5.5 4.2 4.0 3.2 2.5 15.1 -5.8 1.0 11.4 2 Required 6.4 5.0 3.1 3.5 9.8 18.6 -1.7 -1.1 12.1 3 Nonborrowed 10.7 -2.4 7.9 10.5 10.8 14.5 2.5 17.0 12.3 4 Monetary base2 5.2 5.8 4.3 3.9 2.9 6.0 0.7 3.3 11.3 Concepts of money and liquid assets3 5 Ml 4.5 9.2 .3 5.7 4.8 .3 4.7 9.7 12.1 6 M2 7.5 12.0 8.3 8.8 12.7 4.0 7.6 13.6 8.4 7 M3 11.2 12.2 11.2 9.2 13.4 6.9 7.3 13.1 7.2 8 L 11.6 10.6 11.9 n.a. 13.9 8.3 9.7 n.a. n.a. Time and savings deposits Commercial banks 9 Total 16.0 11.9 18.4 8.3 20.8 9.8 6.2 6.8 1.4 10 Savings4 -28.3 -8.9 -22.7 -11.9 -32.7 -22.4 -16.8 8.5 4.6 11 Small-denomination time5 28.5 16.2 24.3 20.7 36.1 23.7 22.2 17.0 -0.3 12 Large-denomination time6 34.3 19.9 36.0 5.3 33.0 11.2 .4 -5.2 1.9 13 Thrift institutions7 4.0 3.2 2.6 2.7 4.4 -2.5 5.1 4.2 1.3 14 Total loans and securities at commercial banks8 11.3 8.4 8.7 3.7 8.5 5.0 5.6 3.4 8.9 1981 1981 1982 Q1 Q2 Q3 Q4 Sept. Oct. Nov. Dec. Jan. Interest rates (levels, percent per annum) Short-term rates 15 Federal funds9 16.57 17.78 17.58 13.59 15.87 15.08 13.31 12.37 13.22 16 Discount window borrowing10 13.00 13.62 14.00 13.04' 14.00 14.00 13.03r 12.10 12.00 17 Treasury bills (3-month market vield) 14.39 14.91 15.05 11.75 14.70 13.54 10.86 10.85 12.28 18 Commercial paper (3-month)11 15.34 16.15 16.78 13.04 16.09 14.85 12.16 12.12 13.09 Long-term rates Bonds 19 U.S. government13 12.74 13.49 14.51 14.14 15.07 15.13 13.56 13.73 14.57 20 State and local government14 9.97 10.69 12.11 12.54 12.92 12.83 11.89 12.91r 13.28 21 Aaa utility (new issue)15 14.45 15.41 16.82 15.67 17.21 16.94 15.56 15.20 15.68 22 Conventional mortgages16 15.10 16.15 17.50 17.33 18.30 18.05 16.95 17.00 17.30 1. Unless otherwise noted, rates of change are calculated from average amounts 7. Savings and loan associations, mutual savings banks, and credit outstanding in preceding month or quarter. 8. Changes calculated from figures shown in table 1.23. December 1981 and 1981 2. Includes reserve balances at Federal Reserve Banks in the current week plus Q4 rates reflect shifts of foreign loans and securities from U.S. banking offices to vault cash held two weeks earlier used to satisfy reserve requirements at all deposi- international banking facilities. tory institutions plus currency outside the U.S. Treasury, Federal Reserve Banks, 9. Averages of daily effective rates (average of the rates on a given date weighted the vaults of depository institutions, and surplus vault cash at depository institu- by the volume of transactions at those rates). tions. 10. Rate for the Federal Reserve Bank of New York. 3. Ml: Averages of daily figures for (1) currency outside the Treasury, Federal 11. Quoted on a bank-discount basis. Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of non- 12. Unweighted average of offering rates quoted by at least five dealers. bank issuers; (3) demand deposits at all commercial banks other than those due 13. Market yields adjusted to a 20-year maturity by the U.S. Treasury. to domestic banks, the U.S. government, and foreign banks and official institutions 14. Bond Buyer series for 20 issues of mixed quality. less cash items in the process of collection and Federal Reserve float; and (4) 15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by negotiable order of withdrawal (NOW) and automatic transfer service (ATS) ac- Moody's Investors Service and adjusted to an Aaa basis. Federal Reserve comcounts at banks and thrift institutions, credit union share draft (CUSD) accounts, pilations. and demand deposits at mutual savings banks. 16. Average rates on new commitments for conventional first mortgages on new M2: Ml plus savings and small-denomination time deposits at all depository homes in primary markets, unweighted and rounded to nearest 5 basis points, from institutions, overnight repurchase agreements at commercial banks, overnight Eu- Dept. of Housing and Urban Development. rodollars held by U.S. residents other than banks at Caribbean branches of member NOTE. Reserve series have been revised to adjust for discontinuties associated banks, and money market mutual fund shares. with changes in Regulation D and with the transitional phase-in of reserve re- M3: M2 plus large-denomination time deposits at all depository institutions and quirements under the Monetary Control Act of 1980. Reserve measures from term RPs at commercial banks and savings and loan associations. November 1980 to date reflect a one-time increase—estimated at $550 million to L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents $600 million—in required reserves associated with the reduction of week-end avoidother than banks, bankers acceptances, commercial paper. Treasury bills and other ance activities of a few large banks. liquid Treasury securities, and U.S. savings bonds. Measures of the money stock have been revised to incorporate annual seasonal 4. Savings deposits exclude NOW and ATS accounts at commercial banks and adjustment and benchmark changes, as well as minor compositional changes. See thrifts and CUSD accounts at credit unions. the H.6 statistical release for Feb. 5, 1982 for more details. Reserve aggregates 5. Small-denomination time deposits are those issued in amounts of less than data also incorporate benchmark and seasonal adjustment factor revisions. $100,000. 6. Large-denomination time deposits are those issued in amounts of $100,000 or more. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics • February 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 nding Factors 1981 1982 1981 1982 Nov. Dec. Jan. Dec. 16 Dec. 23 Dec. 30 Jan. 6 Jan. 13 Jan. 20 Jan. 27 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 148,339 152,072 152,019 151,386 153,394 153,342 154,954 150,909 152,171 151,063 2 U.S. government securities1 125,247 128,505 127,473 128,459 129,574 129.223 130,905 127,323 125,853 126,143 3 Bought outright 124,559 127,483 126,112 128,459 128,455 127,172 127,586 127,323 125,437 124,791 4 Held under repurchase agreements 688 1,022 1,361 0 1,119 2,051 3,319 0 416 V,352 5 Federal agency securities 8,888 9,291 9,184 9,125 9,257 9,555 9,473 9,100 9,105 9,103 6 Bought outright 8,776 9,126 9,084 9,125 9,125 9,125 9,118 9,100 9,082 9,058 7 Held under repurchase agreements 112 165 100 0 132 430 355 0 23 45 8 Acceptances 261 315 156 0 254 798 217 0 60 186 9 Loans 695 642 1,526 398 621 883 1,454 1,000 950 2,471 10 Float 3,320 3,608 4,207 3,569 4,016 3,640 3,632 4,135 6,694 3,544 11 Other Federal Reserve assets 9,928 9,711 9,473 9,835 9,672 9.244 9,274 9,351 9,508 9,615 12 Gold stock 11,152 11,152 11,151 11,152 11,152 11,152 11,151 11,151 11,151 11,151 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 13,712 13,707 13,698 13,679 13.681 13,687 14,141 13,693 13,700 13,705 ABSORBING RESERVE FUNDS 15 Currency in circulation 140,553 143,700 142,129 143,265 144,046 145,197 145,111 143,263 141,878 140,447 16 Treasury cash holdings 450 443 447 445 442 437 443 447 448 447 Deposits, other than reserves, with Federal Reserve Banks 17 Treasury 3,061 2,965 4,713 2,772 3,215 2,912 3,747 3,069 3,712 6,147 18 Foreign 325 343 389 304 361 373 451 530 334 292 19 Other 688 605 538 578 592 574 873 480 470 448 20 Required clearing balances 91 110 127 110 110 115 117 125 128 131 21 Other Federal Reserve liabilities and capital 5,438 5,768 5,401 5,963 5,814 5,370 5,525 5,379 5,391 5,269 22 Reserve accounts2 25,915 26,315 26,443 26,098 26,965 26,521 27,297 25,777 27,980 26,055 End-of-month figures Wednesday figures 1981 1982 1981 1982 Nov. Dec. Jan. Dec. 16 Dec. 23 Dec. 30 Jan. 6 Jan. 13 Jan. 20 Jan. 27 SUPPLYING RESERVE FUNDS 23 Reserve Bank credit outstanding 149,264 153,136 151,560 153,115 158,352 156,552 152,421 152,714 157,766 155,060 24 U.S. government securities1 126,539 130,954 128,230 128,570 131,260 131,493 127,695 125,446 127,787 129,047 25 Bought outright 124,743 127,738 124,967 128,570 127,247 127,990 125,496 125,446 124,872 126,541 26 Held under repurchase agreements 1,796 3,216 3,263 0 4,013 3,503 2,199 0 2,915 2,506 27 Federal agency securities 9,448 9,394 9,192 9,125 9,604 9,562 9,473 9,089 9,217 9,159 28 Bought outright 9,129 9,125 9,058 9,125 9,125 9,125 9,109 9,089 9,057 9,057 29 Held under repurchase agreements 319 269 134 0 479 437 364 0 160 102 30 Acceptances 744 195 597 0 787 624 136 0 417 368 31 Loans 232 1,601 2,217 505 1,290 1,237 2,042 2,906 3,682 5,109 32 Float 2,177 1,762 1,635 5,682 6,183 4,168 3,649 5,346 6,579 1,732 33 Other Federal Reserve assets 10,124 9,230 9,689 9,233 9,228 9,468 9,426 9,927 10,084 9,645 34 Gold stock 11,152 11,151 11,151 11,152 11,152 11,151 11,151 11,151 11,151 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 14,441 14,480 13,705 13,679 13,687 13,687 13,690 13,698 13,705 13,705 ABSORBING RESERVE FUNDS 37 Currency in circulation 142,683 145,566 139,667 143,886 145,032 145,517 144,353 142,921 141,450 140,354 38 Treasury cash holdings 445 444 452 442 442 442 442 449 446 450 Deposits, other than reserves, with Federal Reserve Banks 39 Treasury 3,475 4,301 8,285 3,352 2,282 3,402 2,486 3,235 3,661 7,169 40 Foreign 535 505 333 264 333 319 217 275 264 346 41 Other 715 781 393 579 614 600 684 448 543 437 42 Required clearing balances 99 117 135 110 110 115 117 125 128 131 43 Other Federal Reserve liabilities and capital 6,011 5,261 5,539 5,814 5,292 5,345 5,353 5,306 5,272 5,044 44 Reserve accounts2 24,213 25,111 24,931 26,818 32,404 28,968 26,929 28,122 34,176 29,303 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 1982 Dec. May June July Aug. Sept. Oct. Nov. Dec. Jan. 1 Reserve balances with Reserve Banks1 26,664 26,822 26,819 27,172 27,023 25,527 25,592 25,915 26,316 26,443 ? 1188,,114499 1177,,777733 1188,,119988 1188,,227733 1188,,443388 1188,,992277 1188,,881100 1188,,883399 1199,,554466 2200,,550066 3 Vault cash at institutions with required reserve balances2 12,602 12,124 12,396 12,504 12,585 12,966 12,881 12,956 13,550 14,197 4 Vault cash equal to required reserves at other institutions 704 1,310 1,350 1,319 1,364 2,041 2,054 2,011 2,126 2,229 5 Surplus vault cash at other institutions3.. 4,843 4,339 4,452 4,450 4,489 3,920 3,875 3,872 3,870 4,080 6 Reserve balances + total vault cash4 44,940 45,100 45,507 45,513 44,499 44,430 44,778 45,883 45,883 46,965 7 Reserve balances + total vault cash used to satisfy reserve requirements4'5 40,097 40,344 40,648 41,057 41,024 40,579 40,555 40,906 42,013 42,885 8 Required reserves (estimated) 40,067 40,213 40,098 40,675 40,753 40,179 40,438 40,591 41,614 42,784 9 Excess reserve balances at Reserve Banks4-6 . 30 131 550 382 271 400 117 315 399 101 10 Total borrowings at Reserve Banks 1,617 2,154 2,038 1,751 1,408 1,473 1,149 695 642 1,526 11 Seasonal borrowings at Reserve Banks 116 259 291 248 220 222 152 79 53 75 12 Extended credit at Reserve Banks n.a. n.a. n.a. n.a. 79 301 442 178 149 197 Weekly averages of daily figures for week ending: Nov. 25 Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 Jan. 6 Jan. 13 Jan. 20 Jan. 27 13 Reserve balances with Reserve Banks1 26,556 26,242 25,163 26,098 26,965 26,521 27,297 25,777 27,980 26,055 14 Total vault cash (estimated) 17,934 19,360 19,587 20,322 18,632 19,748 19,196 20.698 20,970 21,007 15 Vault cash at institutions with required reserve balances2 12,410 13,359 13,450 13,861 13,087 13,862 13.515 14,336 14,447 14,483 16 Vault cash equal to required reserves at other institutions 1,916 2,053 2,158 2,251 2,023 2,104 2,061 2,326 2,235 2,265 17 Surplus vault cash at other institutions3 .. 3,608 3,948 3,979 4,210 3,522 3,782 3,620 4,036 4,288 4,259 18 Reserve balances + total vault cash4 44,513 45,624 44,772 46,444 45,618 46,285 46,509 46,489 48,966 47,078 19 Reserve balances + total vault cash used to satisfy reserve requirements4-5 40,905 41,676 40,793 42,234 42,096 42,503 42,889 42,453 44,678 42.819 20 Required reserves (estimated) 40,753 41,230 40,608 42,131 41,721 42,031 42,145 42,175 44,282 42,703 21 Excess reserve balances at Reserve Banks4-6 . 152 446 185 103 375 472 744 278 396 116 22 Total borrowings at Reserve Banks 337 317 618 398 621 883 1,454 1,000 950 2,471 23 Seasonal borrowings at Reserve Banks 69 41 30 51 70 75 59 53 70 96 24 Extended credit at Reserve Banks 123 125 125 130 161 173 193 194 195 199 1. As of Aug. 13, 1981 excludes required clearing balances of all depository existing member bank, or when a nonmember bank joins the Federal Reserve institutions. System. For weeks for which figures are preliminary, figures by class of bank do 2. Prior to Nov. 13, 1980, the figures shown reflect only the vault cash held by not add to total because adjusted data by class are not available. member banks. 5. Reserve balances with Federal Reserve Banks which exclude required clearing 3. Total vault cash at institutions without required reserve balances less vault balances plus vault cash at institutions with required reserve balances plus vault cash equal to their required reserves. cash equal to required reserves at other institutions. 4. Adjusted to include waivers of penalties for reserve deficiencies in accordance 6. Reserve balances with Federal Reserve Banks which exclude required clearing with Board policy, effective Nov. 19, 1975, of permitting transitional relief on a balances plus vault cash used to satisfy reserve requirements less required reserves. graduated basis over a 24-month period when a nonmember bank merged into an (This measure of excess reserves is comparable to the old excess reserve concept published historically.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics • February 1982 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks1 Averages of daily figures, in millions of dollars 1981 and 1982, week ending Wednesday By maturity and source Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30r Jan. 6 Jan. 13 Jan. 20 Jan. 27 One day and continuing contract 1 Commercial banks in United States 5511,,990011 57,328 55,055 51,653 52,496 57,560 58,089 5555,,117722 50,762 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 18,296 19,289 19,235 18,500 18,126 18,375 18,181 17,889 17,455 3 Nonbank securities dealers 3,566 4,018 4,242 3,882 3,293 3,739 3,638 4,019 4,478 4 All other 16,630 19,834 20,479 19,910 17,905 20,502 21,715 21,558 21,889 All other maturities 5 Commercial banks in United States 33,,883399rr 3,311 3,416 3,717 3,945 3,614 3,388 3,891 3,824 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 7,786 7,528 7,691 8,197 8,129 7,935 7,140 7,339 7,437 7 Nonbank securities dealers 4,350 4,385 4,052 3,968r 4,189 3,421 3,603 3,718 4,151 8 All other 13,289r 10,943 10,000 10,327r 12,334 10,845 9,778 9,310 9,173 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 19,404r 18,575r 17,364r 17,460r 18,049 22,231 18,534 18,896 17,819 10 Nonbank securities dealers 3,474 4,239 3,963 3,845 4,037 4,349 4,227 4,177 3,462 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 credit1 SShhoorrtt--tteerrmm aaddjjuussttmmeenntt ccrreeddiitt FFFeeedddeeerrraaalll RRReeessseeerrrvvveee aanndd sseeaassoonnaall ccrreeddiitt First 60 days Next 90 days BBBaaannnkkk of borrowing of borrowing After 150 days EEffffeeccttiivvee ddaattee ffoorr ccuurrrreenntt rraatteess Rate on Effective Previous Rate on Previous Rate on Previous Rate on Previous 1/31/82 date rate 1/31/82 rate 1/31/82 rate 1/31/82 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 F.R. Effective date A le l v l e F l) . — R. Ba o n f k Effective A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba o n f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31,1972. 4Vi 4Vi 1976— Jan. 19 5Vi-6 5Vi 1979— Sept. 19 10Vi-ll 11 1973— Jan. 15 5 5 73 5Vi 5 Vi 21 11 11 Feb. 26 5-5 Vi 5Vi Nov. 77 5V*-5Vi 5V4 Oct. 8 11-12 12 Mar. 2 5 Vi 5Vi 76 5V4 5^4 10 12 12 Apr. 23 5VS-53/4 5Vi May 4 5^4 5% 11997777—— AAuugg.. 30 5V4-53/4 5V4 1980— Feb. 15 12-13 13 11 53/4-6 6 31 5V4~53/4 5V4 19 13 13 18 6 6 Sept. 7 5^4 53/4 May 29 12-13 13 June 11 6-6 Vi 6Vi Oct. 76 6 6 30 12 12 1 5 6Vi 6Vi June 13 11-12 11 July 2 7 7 1978— Jan. 9 6-6 Vi 6Vi 16 11 11 Aug. 14 7-7Vi 7Vi 70 6Vi 6Vi July 28 10-11 10 2 3 7V2 7Vi MMaayy 11 6Vi-7 1 29 10 10 17 7 7 Sept. 26 11 11 1974— Apr. 25 7Vi-8 8 July 3 7-7 V4 7V4 Nov. 17 12 12 30 8 8 July 10 IV* IV* Dec. 5 12-13 13 Dec. 9 73/4-8 73/4 Aug. 71 73/4 73/4 8 13 13 1 6 m m Sept. 77 Oct. 16 8-8 Vi 8 Vi 1981— May 5 13-14 14 1975— Jan. 1 6 0 7 7 V V 4 4 - - 7 7 3 3 /4 /4 m m Nov. 70 1 8V 8 i - V 9 i W 9 8 V V i i M No a v y . 8 2 13 1 - 4 1 4 1 1 4 3 2 4 7V4 7V4 3 9Vi 9 Vi Nov 6 13 13 F M e a b r . . 1 5 0 7 6 61 3 / / 6 4 4 - 3 - 7 / 6 V 4 3 /4 4 m 6 6V % 4 1979— AA Ju uu ly gg .. 7107 lO 1 - 0 lO Vi 1 lO 0 Vi Dec. 4 12 12 14 6V4 m 70 10W 10 Vi May 16 6-6V4 6 23 6 6 In effect Jan. 31, 1982 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 tor 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 4 percent 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. Tne surcharge was eliminated on Nov. 17, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics • February 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 3 11/13/80 2-10 91/2 12/30/76 1122 1111//1133//8800 10-100 113/4 12/30/76 100-400 12% 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 4 years or more 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 21/2 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 for 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 and 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 7Vi 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 , tne 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 Jan. 31, 1982 Previous maximum In effect Jan. 31, 1982 Previous maximum Effective Percent Effective Percent Effective date date date 1 Savings 5LA 7/1/79 7/1/73 5Vi 7/1/79 5'/4 2 Negotiable order of withdrawal accounts 2 5VA 12/31/80 1/1/74 5!/4 12/31/80 5 Time accounts 3 Fixed ceiling rates by maturity 4 4 5 6 7 8 9 3 2 9 4 2 6 1 1 0 V 4 t t t t l o o - o o d 8 t a 9 2 2 o 8 6 y V s d y y y 4 l e e e a t y y o a a a y e e r r r s s s a s 1 a " r r 8 8 s v ' s e 7 7 a r 6 5 I I 5 3 1 V V V / / 4 4 l A i 12 1 7 7 / 8 1 1 2 / / / / / 1 1 3 1 1 1 / / / / / / 7 7 7 7 7 8 4 3 3 9 3 0 5 5 5 m S 5 3 3 ' / / / V 4 4 5 i 1 1 1 1 7 7 / / / 1 2 2 2 / / / 1 1 1 1 1 1 / / / / / / 7 7 7 7 7 7 0 3 3 0 0 3 6 6 6m 7 ( 3 3 6 V / / 4 4 ) L 12 1 / 1 1 2 ( 0 / / 3 1 1 ') ) / / / 7 8 7 4 0 3 (6) 6 5 5 V 3 3 / / 4 4 / 2 1 1 0 1 8 Is s y u e e a d rs to o r g m ov o e re r n 8 m ental units (all maturities) 10 73/4 6 6 / / 1 1 / / 7 7 8 8 73/4 'i2/23/74' 6 6 / / 1 1 / / 7 7 8 8 \vA 12 Individual retirement accounts and Keogh (H.R. 10) plans (3 years or more) 10,11 6/1/78 73/4 7/6/77 6/1/78 73/4 Special variable ceiling rates by maturity 13 6-month money market time deposits 12 Cl3\ 14 12-month all savers certificates 15 21/! years to 4 years Accounts with no ceiling rates 16 Indiv p i l d a u n a s l ( r 1 e 8 t ir m e o m n e t n h t s a o c r c m ou o n r t e s ) and Keogh (H.R. 10) 07) (17) 07) 07) (1?) 07) 07) 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 percent or below 1.75 percent and New Hampshire were first permitted to offer negotiable order of withdrawal Above 7.25 percent, but below '/£ of 1 percentage point plus the higher of (NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was ex- 8.50 percent the bill rate or 4-week average bill rate tended to similar institutions throughout New England on Feb. 27, 1976, and in 8.50 percent or above, but below 9 percent New York State on Nov. 10, 1978, and in New Jersey on Dec. 28, 1979. Author- 8.75 percent ization to issue NOW accounts was extended to similar institutions nationwide 8.75 percent or above Va 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 January 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: Jan. 5, 12.698; Jan. 12, 12.532; Jan. 19, 13.056; at savings and loan associations was decreased to 14 days and the minimum maturity Jan. 26, 13.352. The maximum allowable rates in January 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: Jan. 5, 11.913; to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice period for Jan. 12, 12.291; Jan. 19, 12.594; Jan. 26, 12.910. 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. January (in percent) were as follows: Jan. 24, 10.76. 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 2'/5 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 VA of 1 percent below the average 2'/5-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 2VS -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 2V5-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 6Vl 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 January (in percent) for commercial banks were as 10. Accounts subject to fixed-rate ceilings. See footnote 8 for minimum denom- follows: Jan. 5, 13.75; Jan. 19, 14.50; and for thrift institutions: Jan. 5, 14.00; Jan. ination requirements. 19, 14.75. 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 2!^-year or more variable-ceiling certificates no required minimum denomination and with maturities of 2VS 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 21/2-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 VA 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 and 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 deposit (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 percent or below 7.75 percent Above 7.50 percent VA 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 Financial Statistics • February 1982 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1981 TTyyppee ooff ttrraannssaaccttiioonn 11997799 11998800 11998811 June July Aug. Sept. Oct. Nov. Dec. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched salepurchase transactions) Treasury bills 1 Gross purchases 15,998 7,668 13,899 295 1,325 1,713 1,753 241 1,765 2,170 2 Gross sales 6,855 7,331 6,746 90 0 333 945 1,157 0 0 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 2,900 3,389 1,816 0 100 0 500 200 16 0 Others within 1 yearx 5 Gross purchases 3,203 912 317 0 122 0 0 0 0 80 6 Gross sales 0 0 23 0 0 0 0 0 0 0 7 Maturity shift 17,339 12,427 13,794 833 1,073 2,807 628 425 1,389 887 8 Exchange -11,308 -18,251 -12,869 -823 -351 -2,430 -599 0 -3,047 -754 9 Redemptions 2,600 0 0 0 0 0 0 0 0 0 1 to 5 years 10 Gross purchases 2,148 2,138 1,702 0 607 0 0 0 100 526 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -12,693 -8,909 -10,299 -833 -1,073 -820 -628 -425 -1,057 -887 13 Exchange 7,508 13,412 10,117 823 351 1,724 599 0 2,325 754 5 to 10 years 14 Gross purchases 523 703 393 0 64 0 0 0 0 165 15 Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shift -4,646 -3,092 -3,495 0 0 -1,987 0 0 -332 0 17 Exchange 2,181 2,970 1,500 0 0 400 0 0 400 0 Over 10 years 18 Gross purchases 454 811 379 0 182 0 0 0 0 108 19 Gross sales 0 0 0 0 0 0 0 0 0 0 20 Maturity shift 0 -426 0 0 0 0 0 0 0 0 21 Exchange 1,619 1,869 1,253 0 0 305 0 0 322 0 All maturities1 22 Gross purchases 22,325 12,232 16,690 295 2,301 1,713 1,753 241 1,865 3,049 23 Gross sales 6,855 7,331 6,769 90 0 333 945 1,157 0 0 24 Redemptions 5,500 3,389 1,816 0 100 0 500 200 16 0 Matched transactions 25 Gross sales 627,350 674,000 589,312 51,106 69,972 54,329 52,055 58,581 42,012 54,098 26 Gross purchases 624,192 675,496 589,647 52,607 69,309 55,917 51,555 58,372 41,900 54,044 Repurchase agreements 27 Gross purchases 107,051 113,902 79,920 3,509 23,217 7,199 0 3,902 9,505 14,180 28 Gross sales 106,968 113,040 78,733 3,509 21,599 8,817 0 3,902 7,709 12,760 29 Net change in U.S. government securities 6,896 3,869 9.626 1,706 3,155 1,350 -192 -1,325 3,534 4,415 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 853 668 494 0 0 0 0 0 494 0 31 Gross sales 399 0 0 0 0 0 0 0 0 0 32 Redemptions 134 145 108 26 * * 33 15 10 4 Repurchase agreements 33 Gross purchases 37,321 28,895 13,320 691 5,182 864 0 787 1,607 1,647 34 Gross sales 36,960 28,863 13,576 691 4,822 1,225 0 787 1,288 1,697 35 Net change in federal agency obligations 681 555 130 -26 360 -360 -33 -15 802 -54 BANKERS ACCEPTANCES 36 Outright transactions, net 0 0 0 0 0 0 0 0 0 0 37 Repurchase agreements, net 116 73 -582 0 453 -453 0 0 744 -549 38 Net change in bankers acceptances 116 73 -582 0 453 -453 0 0 744 -549 39 Total net change in System Open Market Account 7,693 4,497 9,175 1,680 3,968 536 -225 -1,340 5,080 3,812 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. aad to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Banks All 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1981 1982 1981 1982 Dec. 30 Jan. 6 Jan. 13 Jan. 20 Jan. 27 Nov. Dec. Jan. Consolidated condition statement ASSETS 1 Gold certificate account 11,151 11,151 11,151 11,151 11,152 11,151 2 Special drawing rights certificate account 3,318 3,318 3,318 3,318 3,318 3,318 3 Coin 367 378 392 410 400 377 Loans 4 To depository institutions 2,0420 2,9060 3,6820 5,1090 2320 1,6010 5 Other Acceptances 6 Held under repurchase agreements Federal agency obligations 7 Bought outright 9,109 9,0890 9,057 9,057 9,129 9,125 8 Held under repurchase agreements 364 160 102 319 269 U.S. government securities Bought outright 9 Bills 47,117 47,067 46,493 48,162 47,243 49,359 10 Notes 59,978 59,978 59,978 59,978 59,207 59,978 11 Bonds 18,401 18,401 18,401 18,401 18,293 18,401 1 1 2 3 He T ld o t u al n 1 d er repurchase agreements 12 2 5 , , 1 4 9 9 9 6 125,4460 12 2 4 , , 9 8 1 7 5 2 12 2 6 , , 5 5 0 4 6 1 12 1 4 , , 7 7 9 4 6 3 12 3 7 , , 2 7 1 3 6 8 14 Total U.S. government securities 127,695 125,446 127,787 129,047 126,539 130,954 15 Total loans and securities 139,346 137,441 141,103 143,683 136,963 142,144 16 Cash items in process of collection 11,023 11,794 14,428 6,983 7,485 8,557 17 Bank premises 503 499 500 502 497 503 Other assets 18 Denominated in foreign currencies2 5,194 5,194 5,196 5,200 5,998 5,129 19 All other3 3,729 4,234 4,388 3,943 3,629 3,598 20 Total assets 174,631 174,009 180,476 175,190 169,442 174,777 LIABILITIES 21 Federal Reserve notes 131,471 130,050 128,583 127,509 129,086 131,906 Deposits 22 Depository institutions 27,046 28,247 34,304 29,434 24,312 25,228 23 U.S. Treasury—General account 2,486 3,235 3,661 7,169 3,475 4,301 24 Foreign—Official accounts 217 275 264 346 535 505 25 Other 684 448 543 437 715 781 26 Total deposits 30,433 32,205 38,772 37,386 29,037 30,815 27 Deferred availability cash items 7,374 6.448 7,849 5,251 5,308 6,795 2,532 2.449 2,425 2,196 2,846 2,705 28 Other liabilities ana accrued dividends4 171,810 171,152 177,629 172,342 166,277 172,221 29 Total liabilities CAPITAL ACCOUNTS 1,278 1,281 1,284 1,286 1,270 1,278 3301 CSuarppiltuals paid in 1,278 1,278 1,278 1,278 1,203 1,2780 265 298 285 284 692 32 Other capital accounts 174,631 174,009 180,476 175,190 169,442 174,777 33 Total liabilities and capital accounts 34 MEMcOu:s tModayr kfeotra bfoler eUig.nS .a ngdo vienrtnermneantit osneacl uarictcieosu nhte ld in 96,079 96,806 95,430 95,533 91,787 95,220 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to bank) .... 151,126 151,014 150,831 150,755 150,632 150,955 151,033 150,605 36 LESS: Held by bank5 18,479 19,543 20,701 22,172 23,123 21,869 19,127 23,770 37 Federal Reserve notes, net 132,647 131,471 130,130 128,583 127,509 129,086 131,906 126,835 Collateral for Federal Reserve notes 38 Gold certificate account 11,151 11,151 11,151 11,151 11,151 11,152 11,151 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 22 88 31 0 0 57 0 0 41 U.S. government and agency securities 118,156 116,914 115,630 114,114 113,040 114,559 117,437 112,366 42 Total collateral 132,647 131,471 130,130 128,583 127,509 129,086 131,906 126,835 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 tne collateral requirement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic NonfinancialS tatistics • February 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 1982 1981 1982 Dec. 30 Jan. 6 Jan. 13 Jan. 20 Jan. 27 Nov. 30 Dec. 31 Jan. 29 1 Loans—Total 1,237 2,042 2,906 3,682 5,109 232 1,601 2,217 2 Within 15 days 1,218 2,018 2,877 3,666 5,079 214 1,576 2,180 3 16 days to 90 days 19 24 29 16 30 18 25 37 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 624 136 0 417 368 744 195 597 6 Within 15 days 624 136 0 417 368 744 195 597 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 131.493 127,695 125,446 127,787 129,047 126,539 130,954 128,230 10 Within 15 days1 8,514 5,235 2,186 7,030 7,801 5,190 3,936 4,618 11 16 days to 90 days 24,302 22,603 23,461 21,265 23,428 25,503 25,190 24,980 12 91 days to 1 year 34,132 35,446 35,388 35,081 33,407 32,101 37,417 34,221 13 Over 1 year to 5 years 36,159 36,025 36,025 36,025 36,025 35,632 36,025 36,025 14 Over 5 years to 10 years 11,752 11,752 11,752 11,752 11,752 11,587 11,752 11,752 15 Over 10 years 16,634 16,634 16,634 16,634 16,634 16,526 16,634 16,634 16 Federal agency obligations—Total 9,562 9,473 9,089 9,217 9,159 9,448 9.394 9,192 17 Within 15 days1 697 646 181 224 243 518 529 276 18 16 days to 90 days 631 623 693 643 622 719 631 622 19 91 days to 1 year 1,443 1,388 1,319 1,413 1,357 1,394 1,443 1,357 20 Over 1 year to 5 years 5,256 5,286 5,366 5,404 5,404 5,237 5,256 5,404 21 Over 5 years to 10 years 962 957 957 960 960 1,007 962 960 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 Aug. Sept. Oct. Nov. Dec. Debits to demand deposits1 (seasonally adjusted) 1111 AAAAllllllll ccccoooommmmmmmmeeeerrrrcccciiiiaaaallll bbbbaaaannnnkkkkssss 40,297.8 49,775.0 63.013.4 89,723.4 85,571.0 85,705.8 76,946.6 96,654.8 2222 MMMMaaaajjjjoooorrrr NNNNeeeewwww YYYYoooorrrrkkkk CCCCiiiittttyyyy bbbbaaaannnnkkkkssss 15.008.7 18,512.7 25.192.5 41.877.2 37,477.2 37,144.3 29,184.0 45,162.1 3333 OOOOtttthhhheeeerrrr bbbbaaaannnnkkkkssss 25,289.1 31,262.3 37,820.9 47.846.3 48,093.8 48,561.5 47,762.6 51,492.7 Debits to savings deposits2 (not seasonally adjusted) 4444 AAAATTTTSSSS////NNNNOOOOWWWW3333 17.1 83.3 158.4 745.0 820.2 833.4 753.3 903.5 5555 BBBBuuuussssiiiinnnneeeessssssss4444 56.7 77.3 93.4 118.1 122.0 117.2 96.3 117.9 6666 OOOOtttthhhheeeerrrrssss5555 359.7 515.2 605.3 595.5 577.0 581.6 539.7 597.0 7777 AAAAllllllll aaaaccccccccoooouuuunnnnttttssss 432.9 675.8 857.2 1,458.6 1,519.2 1,532.2 1,389.2 1,618.4 Demand deposit turnover1 (seasonally adjusted) 8 All commercial banks 139.4 163.5 201.6 316.8 303.3 303.4 274.0 345.5 9 Major New York City banks 541.9 646.2 813.7 1,338.1 1,204.4 1,174.1 961.7 1,495.4 10 Otherbanks 96.8 113.3 134.3 189.9 191.6 193.6 190.7 206.6 Savings deposit turnover2 (not seasonally adjusted) 11 ATS/NOW3 7.0 7.8 9.7 13.5 14.5 14.6 12.8 14.6 12 Business4 5.1 7.2 9.3 13.5 14.3 14.1 11.7 13.9 13 Others5 1.7 2.7 3.4 3.9 3.9 3.9 3.6 4.0 14 All accounts 1.9 3.1 4.2 6.7 7.1 7.2 6.4 7.4 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 SMS As, which were 2. Excludes special club accounts, such as Christmas and vacation clubs. available through June 1977. Back data are available from Publications Services, 3. Accounts authorized for negotiable orders of withdrawal (NOW) and accounts Division of Administrative Services, Board of Governors of the Federal Reserve authorized for automatic transfer to demand deposits (ATS). ATS data availability System, Washington, D.C. 20551. Debits and turnover data for savings deposits starts with December 1978. are not available before July 1977. 4. Represents corporations and other profit-seeking organizations (excluding commercial banks but including savings and loan associations, mutual savings banks, credit unions, the Export-Import Bank, and federally sponsored lending agencies). 5. Savings accounts other than NOW; business; and, from December 1978, ATS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary Aggregates A13 1.21 MONEY STOCK MEASURES AND COMPONENTS Billions of dollars, averages of daily figures 1981 Item DD 1199 ee 77 cc 88 // DD 1199 ee 77 cc 99 // DD 1199 ee 88 cc 00 // DD 1199 ee 88 cc 11 .. Aug/ Sept/ Oct/ Nov/ Dec. Seasonally adjusted MEASURES1 1 Ml 363.2 389.0 414.5 440.8 431.1 431.2 432.9 436.4 440.8 2 M2 1,403.9 1,518.9 1,656.1 1,822.2 1,772.2 1,778.1 1,789.3 1,809.6 1,822.2 3 M3 1,629.0 1,779.3 1,963.1 2,187.5 2,125.8 2,138.0 2,151.0 2,174.4 2,187.5 4 I.2 1,938.9 2,153.9 2,370.4 n.a. 2,559.7 2,577.3 2,598.2 n.a. n.a. COMPONENTS 5 Currency 97.4 106.1 116.2 123.1 120.7 121.1 121.3 121.8 123.1 6 Traveler's checks3 3.5 3.7 4.2 4.3 4.3 4.3 4.3 4.3 4.3 7 Demand deposits 253.9 262.2 267.2 236.4 236.6 234.7 235.7 235.7 236.4 8 Other checkable deposits7 8.4 16.9 26.9 77.0 69.5 71.2 71.6 74.7 77.0 9 Savings deposits4 479.9 421.7 398.9 343.5 350.9 343.1 339.6 340.9 343.5 10 Small-denomination time deposits5 533.9 652.6 751.7 854.6 830.8 839.7 849.8 856.7 854.6 11 Large-denomination time deposits6 194.6 221.8 257.9 300.4 299.9 302.3 302.2 300.6 300.4 Not seasonally adjusted MEASURES1 12 Ml 372.5 398.8 424.6 451.1 430.4 431.5 434.5 439.7 451.1 13 M2 1,408.5 1,524.6 1,662.4 1,828.9 1,766.7 1,775.6 1,793.1 1,809.3 1,828.9 14 M3 1,637.5 1,789.2 1,973.8 2,199.3 2,115.3 2,132.2 2,152.4 2,175.3 2,199.3 15 L2 1,946.6 2,162.8 2,380.2 n.a. 2,544.1 2,568.4 2,596.7 n.a. n.a. COMPONENTS 16 Currency 99.4 108.2 118.3 125.4 121.3 120.8 121.2 122.9 125.4 17 Traveler's checks3 3.3 3.5 3.9 4.1 4.7 4.5 4.3 4.1 4.1 18 Demand deposits 261.5 270.1 275.1 243.3 234.7 234.6 236.6 237.5 243.3 19 Other checkable deposits7 8.4 17.0 27.2 78.4 69.7 71.7 72.4 75.2 78.4 20 Overnight RPs and Eurodollars8 24.1 26.3 35.0 38.1 43.1 39.6 36.2 36.9 38.1 21 Money market mutual funds 10.3 43.6 75.8 184.5 145.4 157.0 166.4 176.6 184.5 22 Savings deposits4 478.0 420.5 398.0 342.9 355.0 347.9 343.9 342.2 342.9 23 Small-denomination time deposits5 531.1 649.7 748.9 851.6 822.0 832.1 847.6 851.9 851.6 24 Large-denomination time deposits6 198.6 226.0 262.3 305.4 294.8 299.1 299.8 301.8 305.4 1. Composition of the money stock measures is as follows: 5. Small-denomination time deposits are those issued in amounts of less than Ml: Averages of daily figures for (1) currency outside the Treasury, Federal $100,000. Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of non- 6. Large-denomination time deposits are those issued in amounts of $100,000 bank issuers; (3) demand deposits at all commercial banks other than those due or more and are net of the holdings of domestic banks, thrift institutions, the U.S. to domestic banks, the U.S. government, and foreign banks and official institutions government, money market mutual funds, and foreign banks and official instituless cash items in the process of collection and Federal Reserve float; and (4) tions. negotiable order of withdrawal (NOW) and automatic transfer service (ATS) ac- 7. Includes ATS and NOW balances at all institutions, credit union share draft counts at banks and thrift institutions, credit union share draft accounts (CUSD), balances, and demand deposits at mutual savings banks. and demand deposits at mutual savings banks. 8. Overnight (and continuing contract) RPs are those issued by commercial M2: Ml plus savings and small-denomination time deposits at all depository banks to the nonbank public, and overnight Eurodollars are those issued by Cainstitutions, overnight repurchase agreements at commercial banks, overnight Eu- ribbean branches of member banks to U.S. nonbank customers. rodollars held by U.S. residents other than banks at Caribbean branches of member banks, and money market mutual fund shares. NOTE. Latest monthly and weekly figures are available from the Board's H.6(508) M3: M2 plus large-denomination time deposits at all depository institutions and release. Back data are available from the Banking Section. Division of Research term RPs at commercial banks and savings and loan associations. and Statistics, Board of Governors of the Federal Reserve System, Washington, 2. L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents D.C. 20551. other than banks, bankers acceptances, commercial paper, Treasury bills and other Measures of the money stock have been revised to incorporate annual seasonal liquid Treasury securities, and U.S. savings bonds. adjustment and benchmark changes, as well as minor compositional changes. See 3. Outstanding amount of U.S. dollar-denominated traveler's checks of nonbank the H.6 statistical release for Feb. 5, 1982 for more details. issuers. 4. Savings deposits exclude NOW and ATS accounts at commercial banks and thrift institutions and CUSDs at credit unions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • February 1982 1.22 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1981 IItteemm 1978 1979 1980 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 percentages with no adjustments to eliminate the effect of changes in Regulation reduction of week-end avoidance activities of a few large banks. D, 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 1978 1979 1980 1978 1979 1980 Dec. Dec. Dec. Dec. Dec. Dec. Nov. Dec.2 Nov. Dec.2 Seasonally adjusted Not seasonally adjusted 1 Total loans and securities3 1.013.54 1,135.9s 1,239.6 1,327.5 1,317.7® 1,022.54 1,145.0s 1,249.5 1,333.4 1,327.66 2 U.S. Treasury securities 93.8 94.5 110.0 110.3 110.9 94.5 95.0 110.5 109.5 111.4 3 Other securities 172.84 191.5 214.4 231.2 231.8 173.94 192.6 215.7 231.9 233.3 4 Total loans and leases3 747.04 849.95 915.1 986.0 974.96 754.2" 857.4s 923.3 992.0 982.96 5 Commercial and industrial loans 245.97 291.25 326.8 363.5 358.56,8 247.77 293.05 328.8 364.9 360.668 6 Real estate loans 210.4 242.I5 262.6 283.1 285.56 211.0 242.65 263.3 284.4 286.46 7 Loans to individuals 164.6 184.7 179.6 183.7 185.2 165.8 185.9 180.9 184.9 186.5 8 Security loans 19.9 19.1 18.5 21.0 21.9 20.6 19.7 19.1 21.3 22.7 9 Loans to nonbank financial institutions .. 26.99 28.75 29.0 30.4 30.36 27.79 29.5s 29.9 30.9 31.2 10 Agricultural loans 28.1 31.0 31.5 32.9 33.0 28.1 30.9 31.4 33.2 33.0 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 43.64 43.9 56.2 58.8 47.8 45.84 46.4 59.0 59.8 49.9 MEMO: 13 Total loans and securities plus loans sold3-'0 1,017.2* 1,138.9s 11 1,242.3 1,330.3 1,320.56 1,026.24 11,,114488..00ss 1111 1,252.2 1,336.2 11,,333300..44'' 14 Total loans plus loans sold3,10 750.74 852.95,11 917.8 988.8 977 76 757.94 860.45'11 926.0 994.7 985.76 15 Total loans sold to affiliates10 3.7 3.09'11 2.7 2.7 2.8 3.7 3.09'11 2.7 2.7 2.8 16 Commercial and industrial loans plus loans sold10 247.87,12 293.25,11 328.6 365.6 360.76,8 249.67,12 295.05'11 330.6 367.0 362.86'8 17 Commercial and industrial loans sold10 .. 1.912 2.011 1.8 2.1 2.2 1.912 2.011 1.8 2.1 2.2 18 Acceptances held 6.6 8.2 7.8 8.9 8.9 7.3 9.1 8.5 9.2 9.8 19 Other commercial and industrial loans... 239.3 283.0 319.0 354.6 349.0 240.4 283.9 320.3 355.7 350.2 20 To U.S. addressees13 226.1 264.6 297.6 328.3 335.0 225.9 264.1 297.1 329.2 334.4 21 To non-U.S. addressees 13.2 18.4 21.4 26.4 14.0 14.5 19.8 23.2 26.6 15.8 22 Loans to foreign banks 20.9 18.3 23.4 23.3 18.9 22.6 19.6 25.1 23.2 20.0 1. Includes domestically chartered banks; U.S. branches and agencies of foreign 9. As of Dec. 31, 1978, nonbank financial loans were reduced $0.1 billion as banks, New York investment companies majority owned by foreign banks, and the result of reclassification. Edge Act corporations owned by domestically chartered and foreign banks. 10. Loans sold are those sold outright to a bank's own foreign branches, non- 2. Shifts of foreign loans and securities from U.S. banking offices to international consolidated nonbank affiliates of the bank, the bank's holding company (if not a banking facilities reduced the December levels for several items as follows: total bank), and nonconsolidated nonbank subsidiaries of the holding company. loans and investments, $23.4 billion; total loans, $23.1 billion; commercial and 11. As of Dec. 1, 1979, loans sold to affiliates were reduced $800 million and industrial loans (non-U.S. addressees), $11.0 billion; loans to foreign banks, $5.9 commercial and industrial loans sold were reduced $700 million due to corrections billion; all other loans, $6.2 billion; and other securities, $0.3 billion. of two banks in New York City. 3. Excludes loans to commercial banks in the United States. 12. As of Dec. 31, 1978, commercial and industrial loans sold outright were 4. As of Dec. 31, 1978, total loans and securities were reduced by $0.1 billion. increased $0.7 billion as the result of reclassifications, but $0.1 billion of this amount "Other securities" were increased by $1.5 billion and total loans were reduced by was offset by a balance sheet reduction of $0.1 billion as noted above. $1.6 billion largely as the result of reclassifications of certain tax-exempt obligations. 13. United States includes the 50 states and the District of Columbia. Most of the loan reduction was in "all other loans." 5. As of Jan. 3,1979, as the result of reclassifications, total loans and securities NOTE. Data are prorated averages of Wednesday estimates for domestically and total loans were increased by $0.6 billion. Business loans were increased by chartered banks, based on weekly reports of a sample of domestically chartered $0.4 billion and real estate loans by $0,5 billion. Nonbank financial loans were banks and quarterly reports of all domestically chartered banks. For foreign-related reduced by $0.3 billion. institutions, data are averages of month-end estimates based on weekly reports 6. Absorption of a nonbank affiliate by a large commercial bank added the from large agencies and branches and quarterly reports from all agencies, branches, following to February figures: total loans and securities, $1.0 billion; total loans investment companies, and Edge Act corporations engaged in banking. and leases, $1.0 billion; commercial and industrial loans, $.5 billion; real estate G.7 data have been revised to reflect new benchmark corrections for domestically loans, $.1 billion; nonbank financial, $.1 billion. chartered banks and recomputation of seasonal factors for both the domestically 7. As of Dec. 31,1978, commercial and industrial loans were reduced $0.1 billion chartered and foreign-related institutions. In addition, estimates of real estate loans as a result of reclassifications. and loans to individuals have been revised to include amounts of such loans at 8. An accounting procedure change by one bank reduced commercial and in- foreign-related institutions (previously included in "all other loans"). Revised data dustrial loans by $0.1 billion as of Apr. 1, 1981. from December 1972 to date are available on request from 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

A16 DomesticN onfinancial Statistics • February 1982 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 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 91.2 121.1 121.7 119.2 112.5 120.1 123.8 122.8 124.7 122.5 119.0 119.3 2 Not seasonally adjusted 90.2 119.8 121.1 118.9 112.0 124.4 124.6 123.5 127.7 126.6 119.9 122.9 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 80.7 90.0 110.8 112.9 110.5 108.8 115.5 114.6 112.2 111.0 112.1 113.6 4 Not seasonally adjusted 79.7 88.7 110.2 112.7 110.1 113.1 116.2 115.3 115.2 115.2 112.9 117.2 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 69.3 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 12.2 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 217.9 232.8 272.4 285.9 283.7 293.6 298.4 304.6 314.5 319.8 322.2 324.0 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 with national or state charters plus agencies and branches of foreign banks, New federal 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. May June 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 67.4 73.5 64.5 57.6 61.6 75.4 55.5 66.4 12 Other assets2 162.9 167.2 171.1 163.1 172.2 162.8 168.3 184.5 175.5 194.4 13 Total assets/total liabilities and capital... 1,493.8 1.501.5 1.537.8 1,534.4 1,544.0 1,533.7 1,558.0 1,617.2 1,565.2 1,606.7 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 7.2 6.4 15.3 13.9 5.6 44 Number of banks 15,147 15,188 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 Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic NonfinancialS tatistics • February 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 1982 Adjustment Account bank, Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 3OP Jan. 6p Jan. 13p Jan. 20' Jan. 27P 1981 1 Cash items in process of collection 56,090 45,930 54,960 57,533 54,879 53,634 48,082 49,251 44,114 118 2 Demand deposits due from banks in the United States 8,001 6,674 7,610 8,017 8,226 7,230 6,853 7,065 6,773 190 3 AH other cash and due from depository institutions .. 35,259 36,694 35,576 39,135 36,154 35,604 35,130 40,636 37,002 354 4 Total loans and securities 605,865 598,937 606,042 602,292 608,325 612,163 606,700 604,315 600,360 1,711 Securities 5 U.S. Treasury securities 37,510 38,002 37,739 36.621 36,819 37,325 37,376 37,577 37,977 353 6 Trading account 6,819 7,431 6,852 5,925 5,947 6,604 6,664 6,599 6,854 7 Investment account, by maturity 30,690 30,570 30,886 30,696 30,872 30,721 30,712 30,978 31,122 353 8 One year or less 9,168 9,368 9,563 9,499 9,861 9,702 9,655 9,970 10,145 110 9 Over one through five years 18,368 18,096 18,220 18,102 17,904 17,991 18,043 17,994 17,966 219 10 Over five years 3,154 3,106 3,104 3,095 3,107 3,028 3,014 3,014 3,011 24 11 Other securities 81,571 79,845 80,093 80,067 80,086 81,293 79,968 79,267 79,290 688 12 Trading account 5,345 3,625 3,892 3.731 3,868 4,677 3,589 3,090 3,098 6 13 Investment account 76,226 76,220 76,202 76,337 76,218 76,616 76,378 76,177 76,192 682 14 U.S. government agencies 16,397 16,431 16,365 16,297 16,300 16,515 16,539 16,383 16,292 237 15 States and political subdivisions, by maturity 56,903 56,866 56,912 57,130 57,021 57,194 56,966 56,942 57,081 432 16 One year or less 8,314 8,228 8,230 8,236 8,122 8,172 7,891 7,915 7,952 108 17 Over one year 48,589 48,638 48,682 48.894 48,899 49,022 49,075 49,027 49,128 324 18 Other bonds, corporate stocks and securities 2,926 2,923 2,924 2.910 2,896 2,907 2,873 2,852 2,818 13 Loans 19 Federal funds sold1 33,654 33,102 35,517 32,781 35,527 38,127 37,153 36,719 32,601 179 20 To commercial banks 23,458 22,637 24,581 22,544 25,740 26,959 25,740 26,247 22,285 179 21 To nonbank brokers and dealers in securities 8,241 8,134 8,299 7,727 7,504 8,274 8,503 7,705 7,434 22 To others 1,955 2,330 2,637 2,510 2,283 2,894 2,910 2,766 2,882 23 Other loans, gross 465,613 460,518 465,204 465,313 468,270 467,865 464,724 463,231 463,040 529 24 Commercial and industrial 191,818 191,558 193,235 192.456 195,462 195,940 194,621 194,851 195,679 515 25 Bankers acceptances and commercial paper 4,757 4,758 4,989 4.537 4,295 3,989 4,130 3,628 3,985 4 26 All other 187,061 186,800 188,246 187.920 191,167 191,951 190,491 191,223 191,694 510 27 U.S. addressees 179,679 179,922 181,421 181,034 184,395 185,142 184,003 184,868 185,3% 506 28 Non-U.S. addressees 7,382 6,878 6,825 6.886 6,772 6,809 6,488 6,355 6,298 4 29 Real estate 123,512 123,553 124,160 124.151 124,444 125,644 125,744 125,920 126,038 1,059 30 To individuals for personal expenditures 73,758 73,850 74,159 74,722 75,164 73,781 73,640 73,412 73,294 -1,175 To financial institutions 31 Commercial banks in the United States 7.721 6,991 7,302 7.248 7,069 7,420 7,218 7,280 7,124 40 32 Banks in foreign countries 9,743 8,527 9.062 8,668 8,277 8,166 7,648 7,531 7,536 33 Sales finance, personal finance companies, etc... 10,506 10,370 10,303 10.114 10,689 10,433 10,200 10,297 10,455 6 34 Other financial institutions 15,879 15,745 15.922 16,066 16,040 15,944 16,070 15,859 15,518 2 35 To nonbank brokers and dealers in securities 8,047 7,246 7,649 8,328 7,946 7,195 6,905 5,655 5,241 2 36 To others for purchasing and carrying securities2... 2,625 2,670 2,696 2.666 2,810 2,741 2,700 2,551 2,658 4 37 To finance agricultural production 5,748 5,718 5,685 5.856 5.702 5,728 5,870 5,817 5,716 28 38 All other 16,256 14,288 15,031 15,038 14,666 14,874 14,107 13,958 13,782 47 39 LESS: Unearned income 5,869 5,877 5,884 5,902 5,827 5,874 5,904 5,865 5,936 49 40 Loan loss reserve 6,615 6,653 6,627 6.590 6,551 6,574 6,616 6,614 6,611 -10 41 Other loans, net 453,130 447,988 452,694 452.822 455,893 455,417 452,203 450,752 450,492 490 42 Lease financing receivables 10,683 10,683 10,692 10.705 10,781 10,943 10,993 10,955 11,014 2 43 All other assets 105,444 104,910 107,477 108,121 108,144 108,440 108,261 104,916 103,714 342 44 Total assets 821,343 803,828 822,358 825,803 826,510 828,013 816,019 817,138 802,977 2,717 Deposits 45 Demand deposits 186,099 168,316 183,108 186,038 187,518 188,380 173,827 171,859 162,035 11,,114455 46 Mutual savings banks 647 559 572 505 556 762 619 579 570 47 Individuals, partnerships, and corporations 137,774 127,311 135,279 138,620 140,376 142,159 134,586 1-29,635 123,292 973 48 States and political subdivisions 4,985 4,260 5,174 5.202 5,235 5,120 4,924 4,523 4,740 60 49 U.S. government 1.114 1,318 2,706 2,191 2,148 2,974 1,199 3,585 2,203 6 50 Commercial banks in the United States 22,158 18,324 21,586 21.295 21,896 21,224 18,068 18,278 17,084 50 51 Banks in foreign countries 9,349 8.271 8,666 8.535 8,206 7,676 7,255 7,701 7,236 10 52 Foreign governments and official institutions 933 1,597 1,272 1.125 1,211 1,154 1,128 1,334 1,052 3 53 Certified and officers' checks 9,138 6,677 7,852 8.565 7,889 7,309 6,048 6,223 5,856 44 54 Time and savings deposits 356,985 358,823 360,216 362.092 362.502 363,114 364,230 363,890 365,597 1,632 55 Savings 76,758 76,841 76,937 76,739 76,971 80,813 80,299 79,706 78,178 1,137 56 Individuals and nonprofit organizations 73,100 73,243 73,350 73,219 73,446 77,162 76,663 76,125 74,634 1,090 57 Partnerships and corporations operated for profit 3,048 3,062 3,019 2.968 2,977 3,041 3,000 2,939 2,923 35 58 Domestic governmental units 581 509 542 526 524 582 614 610 593 11 59 Allother 29 27 26 26 24 28 21 31 28 60 Time 280,227 281,981 283,278 285.352 285,531 282,301 283,931 284,184 287,420 495 61 Individuals, partnerships, and corporations 245,714 247,466 248,548 250,175 250,511 247,821 249,319 249,676 252,405 259 62 States and political subdivisions 19,807 19,778 19,783 19.901 19.849 19,671 19,957 19,950 20,364 229 63 U.S. government 263 249 233 240 239 235 246 266 281 7 64 Commercial banks in the United States 9,520 9,638 9,737 9,984 9.852 9,693 9,578 9,602 9,757 65 Foreign governments, official institutions, and banks 4,923 4,849 4,977 5.052 5,079 4,880 4,831 4,690 4,612 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 200 2,960 98 660 436 1,671 2,553 3,112 4,017 67 Treasury tax-and-loan notes 5,118 1,294 6,351 9.0% 10,013 3,913 7,085 10,757 11,962 -2 68 All other liabilities for borrowed money3 141,439 142,248 141,125 138.683 139,215 146,354 142,208 141,836 133,123 -435 69 Other liabilities and subordinated notes and debentures 77,436 76,088 77,557 75,486 73,384 69,792 71,352 71,147 71,403 58 70 Total liabilities 767,278 749,729 768,455 772,055 773,069 773,224 761,254 762,601 748,136 2,398 71 Residual (total assets minus total liabilities)4 54,066 54,099 53,903 53,748 53,441 54,789 54,765 54,538 54,841 320 1. Includes securities purchased under agreements to resell. NOTE. Beginning in the week ending Dec. 9, 1981, shifts of assets and liabilities 2. Other than financial institutions and brokers and dealers. to international banking facilities (IBFs) reduced the amounts reported in some 3. Includes federal funds purchased and securities sold under agreements to items, especially in loans to foreigners and to a lesser extent in time deposits. Based repurchase: for information on these liabilities at banks with assets of $1 billion or on preliminary reports, the large weekly reporting banks shifted $4.7 billion of more on Dec. 31, 1977, see table 1.13. assets to their IBFs in the five weeks ending Jan. 13, 1982. Domestic offices net Digitized for FRA4. SNEotR a measure of equity capital for use in capital adequacy analysis or for positions with IBFs are now included in net due from or net due to related instiother analytic uses. tutions. More detail will be available later. 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 1982 Adjust- Account ment bank, Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30p Jan. 6P Jan. 13P Jan. 20P Jan. 27P 1981 1 Cash items in process of collection 52,922 43,344 51,852 54,252 51,553 50,210 45,225 45,972 41,439 115 2 Demand deposits due from banks in the United States 7,352 6,096 6,945 7,337 7,587 6,551 6,206 6,412 6,150 159 3 All other cash and due from depository institutions... 33,091 34,580 33,323 36,569 33,646 33,424 32,623 37,899 34,495 340 4 Total loans and securities 565,512 558,742 565,563 561,976 567,776 572,259 567,143 565,051 561,695 3,347 Securities 5 U.S. Treasury securities 34,208 34,717 34,437 33,331 33,535 33,974 33,999 34,165 34,681 335 6 Trading account 6,701 7,319 6,741 5,828 5,887 6,522 6,580 6,513 6,796 7 Investment account, by maturity 27,507 27,398 27,696 27,503 27,648 27,452 27,419 27,652 27,885 335 8 One year or less 8,208 8,379 8,567 8,494 8,816 8,605 8,535 8,813 9,039 107 9 Over one through five years 16,433 16,207 16,319 16,209 16,040 16,137 16,181 16,136 16,145 204 10 Over five years 2,865 2,812 2,810 2,800 2,792 2,710 2,703 2,703 2,701 24 11 Other securities 75,103 73,414 73,666 73,648 73,650 74,812 73,493 72,825 72,834 625 12 Trading account 5,216 3,531 3,790 3,632 3,751 4,562 3,496 3,024 3,015 6 13 Investment account 69,886 69,883 69,876 70,016 69,899 70,250 69,997 69,801 69,819 619 14 U.S. government agencies 15,174 15,204 15,160 15,094 15,092 15,295 15,320 15,164 15,070 223 15 States and political subdivision, by maturity 51,964 51,934 51,972 52,193 52,090 52,230 51,987 51,968 52,114 384 16 One year or less 7,495 7,371 7,366 7,392 7,284 7,325 7,040 7,063 7,101 100 17 Over one year 44,469 44,563 44,606 44,800 44,806 44,905 44,947 44,904 45,013 284 18 Other bonds, corporate stocks and securities 2,748 2,745 2,744 2,730 2,717 2,724 2,690 2,669 2,634 12 Loans 19 Federal funds sold1 29,339 28,875 31,265 28,902 31,671 33,301 32,587 32,444 28,878 148 20 To commercial banks 19,643 19,011 20,902 19,235 22,403 22,806 21,876 22,717 19,196 148 21 To nonbank brokers and dealers in securities 7,791 7,567 7,765 7,230 7,028 7,656 7,866 7,034 6,892 22 To others 1,905 2,296 2,598 2,436 2,239 2,839 2,845 2,693 2,790 23 Other loans, gross 438,317 433,233 437,671 437,558 440,274 441,628 438,589 437,106 436,855 2,312 24 Commercial and industrial 182,480 182,211 183,774 182,878 185,715 186,107 184,857 185,035 185,824 486 25 Bankers acceptances and commercial paper 4,637 4,639 4,866 4,393 4,144 3,846 3,998 3,487 3,844 5 26 All other 177,842 177,572 178,908 178,485 181,571 182,260 180,859 181,548 181,979 480 27 U.S. addressees 170,541 170,772 172,165 171,685 174,876 175,539 174,453 175,274 175,764 476 28 Non-U. S. addressees 7,301 6,800 6,743 6,801 6,694 6,721 6,406 6,274 6,215 4 29 Real estate 116,705 116,744 117,306 117,329 117,629 118,670 118,736 118,893 118,9% 929 30 To individuals for personal expenditures 64,560 64,628 64,891 65,393 65,765 66,417 66,294 66,060 65,953 775 To financial institutions 31 Commercial banks in the United States 7,564 6,834 7,142 7,060 6,861 7,227 7,038 7,120 6,967 41 32 Banks in foreign countries 9,652 8,459 8,996 8,585 8,198 8,076 7,581 7,462 7,464 33 Sales finance, personal finance companies, etc ... 10,367 10,232 10,154 9,962 10,549 10.292 10,060 10,154 10,303 6 34 Other financial institutions 15,479 15,342 15,502 15,653 15,658 15,518 15,643 15,431 15,115 1 35 To nonbank brokers and dealers in securities 7,995 7,196 7,597 8,276 7,886 7,112 6,852 5,606 5,196 2 36 To others for purchasing and carrying securities2 ... 2,378 2,419 2,446 2,415 2,559 2,497 2,453 2,408 2,413 4 37 To finance agricultural production 5,610 5,582 5,552 5,722 5,569 5,591 5,732 5,679 5,572 26 38 All other 15,529 13,586 14,312 14,285 13,885 14,121 13,342 13,258 13,052 41 39 LESS: Unearned income 5,232 5,237 5,243 5,261 5,189 5,234 5,266 5,227 5,293 46 40 Loan loss reserve 6,222 6,260 6,233 6,202 6,166 6,221 6,260 6,262 6,261 28 41 Other loans, net 426,862 421,736 426,195 426,095 428,920 430,173 427,064 425,617 425,302 2,238 42 Lease financing receivables 10,372 10,373 10,376 10,382 10,442 10,602 10,657 10,620 10,680 3 43 All other assets 102,533 101,961 104,415 104,940 104,903 105,350 105,140 101,820 100,593 361 44 Total assets 771,782 755,095 772,474 775,457 775,908 778,397 766,995 767,775 755,052 4,325 Deposits 45 Demand deposits 173,502 156,748 170,396 117733,,229977 174,411 174,966 161,432 159,249 150,286 1,106 46 Mutual savings banks 627 539 550 448866 543 734 598 560 555 47 Individuals, partnerships, and corporations 127,852 118,076 125,492 128,822 130,196 131,828 124,741 119,999 114,247 950 48 States and political subdivisions 4,430 3,797 4,509 4,483 4,594 4,578 4,350 3,942 4,128 47 49 U.S. government 983 1,215 2,426 1,973 1,946 2,691 978 3,008 1,891 6 50 Commercial banks in the United States 20,576 16,908 20,050 19,720 20,308 19,494 16,718 16,875 15,730 50 51 Banks in foreign countries 9,271 8,201 8,592 8,446 8,074 7,602 7,188 7,622 7,160 10 52 Foreign governments and official institutions 931 1,596 1,265 1,113 1,209 1,153 1,126 1,331 1,034 3 53 Certified and officers' checks 8,832 6,415 7,512 8,253 7,541 6,886 5,732 5,912 5,541 40 54 Time and savings deposits 333,893 335,592 337,004 338,862 339,283 341,049 342,206 341,908 343,620 2,826 55 Savings 70,940 70,995 71,088 70,922 71,105 74,586 74,126 73,578 72,190 1,021 56 Individuals and nonprofit organizations 67,548 67,663 67,765 67,657 67,844 71,197 70,749 70,249 68,897 975 57 Partnerships and corporations operated for profit 2,819 2,831 2,789 2,744 2,752 2,813 2,772 2,719 2,702 35 58 Domestic governmental units 544 474 508 496 484 548 585 580 564 11 59 All other 29 27 26 26 24 28 21 31 28 60 Time 262,953 264,597 265,916 267,940 268,178 266,463 268,079 268,329 271,429 1,805 61 Individuals, partnerships, and corporations 230,618 232,245 233,318 234,922 235,290 234,070 235,527 235,814 238,416 1,576 62 States and political subdivisions 18,008 17,992 18,024 18,164 18,136 18,005 18,288 18,310 18,697 222 63 U.S. government 253 240 223 230 229 225 235 256 271 7 64 Commercial banks in the United States 9,151 9,272 9,374 9,571 9,443 9,284 9,198 9,261 9,433 65 Foreign governments, official institutions, and banks 4,923 4,849 4,977 5,052 5,079 4,880 4,831 4,690 4,612 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 200 2,960 98 645 436 1,584 2,520 3,061 3,853 67 Treasury tax-and-loan notes 4,744 1,182 5,893 8,376 9,207 3,608 6,607 9,918 10,998 68 All other liabilities for borrowed money3 133,337 133,820 132,928 130,450 131,178 137,927 133,593 133,295 125,328 18 69 Other liabilities and subordinated notes and debentures 75,536 74,174 75,720 73,549 71,475 67,958 69,413 69,256 69,578 52 70 Total liabilities 721,212 704,476 722,040 725,180 725,990 727,092 715,770 716,687 703,663 4,001 71 Residual (total assets minus total liabilities)4 50,569 50,619 50,434 50,276 49,917 51,305 51,225 51,088 51,389 324 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 SI billion or more on Dec. 31, 1977, see table 1.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic NonfinancialS tatistics • February 1982 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1981 1982 AAccccoouunntt Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30P Jan.6p Jan. 13P Jan. 20? Jan. IIP 1 Cash items in process of collection 17,378 14.053 16,463 17.836 17,269 13.663 14,337 1133,,881166 1122,,993322 2 Demand deposits due from banks in the United States 1,641 1.337 1.356 1,279 1,361 1,237 977 1,310 1,038 3 All other cash and due from depository institutions.. 8,566 9.364 9.660 10.444 9,812 10,882 8,137 9,008 7,507 4 Total loans and securities' 137,739 133,801 136,911 134,866 135,997 133,843 133,127 133,572 132,793 Securities 5 6 7 Investment account, by maturity 7,321 7.001 7,054 7,013 6,907 6,864 6,850 6,831 6,815 8 One year or less 1,240 1.225 1.218 1,218 1,213 1,198 1,198 1,231 1,215 9 Over one through five years 5,402 5.145 5,236 5,194 5,093 5,055 5.046 4,997 4,998 iU Over five years 679 631 601 601 601 611 607 603 602 11 1? 13 Investment account 14,816 14,739 14,786 14,862 14,750 14,752 14,637 14,618 14,710 14 U.S. government agencies 2.360 2,360 2,354 2.352 2,353 2,348 2,352 2,303 2,274 15 States and political subdivision, by maturity .... 11,646 11,573 11.598 11.675 11.552 11,563 11,445 11,480 11,598 16 One year or less 1,983 1,907 1,933 2.020 1,964 1.998 1,956 1,990 2,066 17 Over one year 9,663 9,666 9,665 9,654 9,589 9,565 9,488 9,490 9,532 18 Other bonds, corporate stocks and securities.... 810 806 835 834 844 841 840 834 838 Loans 19 Federal funds sold3 8.461 7,796 9,944 8,038 8,215 6,887 7,670 9,441 8,528 20 To commercial banks 3,452 2.943 4,861 3,252 3,825 2,252 2,777 4,845 4,047 21 To nonbank brokers and dealers in securities 4.011 3.565 3,591 3,456 3,289 3,306 3.457 2,967 2,844 22 To others 998 1,288 1,492 1.329 1,101 1,330 1,435 1,628 1,638 23 Other loans, gross 110,592 107,741 108,609 108,417 109,585 108,829 107,474 106,187 106,311 24 Commercial and industrial 55,670 55,126 55,086 54,994 56,225 55,777 55,254 55,468 55,358 25 Bankers acceptances and commercial paper 1,453 1,408 1.411 1,292 1,265 1,194 1,284 1,042 1,163 26 All other 54,217 53.718 53,675 53,701 54,960 54,582 53,969 54,426 54,195 27 U.S. addressees 51,936 51,862 51.964 52,090 53,446 53,115 52,550 53,024 52,773 28 Non-U.S. addressees 2,280 1.856 1,711 1,611 1,514 1,467 1,419 1,402 1,422 29 Real estate 17,411 17,362 17.561 17,512 17,648 17,667 17,620 17,662 17,697 30 To individuals for personal expenditures 10,884 10.950 11,012 11,096 11,150 11,160 11,122 11,084 11,030 To financial institutions 31 Commercial banks in the United States 2,258 2.113 2,157 1,995 2,001 2,362 2,033 1,964 2,147 32 Banks in foreign countries 4,754 3.735 4,256 3,632 3,467 3,845 3,365 3,216 3,272 33 Sales finance, personal finance companies, etc... 4,352 4,249 4,179 3,948 4,323 4,253 4,249 4,349 4,509 34 Other financial institutions 4.495 4,602 4.562 4,612 4,595 4,365 4,485 4,436 4,340 35 To nonbank brokers and dealers in securities 4.904 4.329 4,640 5,240 5,090 4.271 4,272 3,138 3,113 36 To others for purchasing and carrying securities4 .. 595 597 616 612 724 685 683 670 666 3/ To finance agricultural production 317 322 325 481 277 276 464 459 401 38 All other 4,953 4,355 4,213 4,295 4,087 4,168 3,927 3,741 3,778 39 LESS: Unearned income 1,340 1.348 1.364 1.370 1,374 1,366 1,367 1,367 1,428 40 Loan loss reserve 2,112 2.127 2.118 2,092 2,086 2,124 2,137 2,137 2,143 41 Other loans, net 107,140 104,266 105,126 104,954 106,126 105,340 103,970 102,683 102,740 42 Lease financing receivables 2,254 2,251 2,252 2.250 2,258 2.302 2,308 2,314 2,318 43 All other assets5 45,660 42,457 42,852 43,354 43,264 44,179 43,052 41,073 41,070 44 Total assets 213,238 203,263 209,495 210,029 209,961 206,106 201,980 201,094 197,658 Deposits 45 Demand deposits 53,959 45,717 51.352 53.401 52,326 49,434 45,931 45,491 43,191 46 Mutual savings banks 318 277 265 215 268 368 313 282 284 47 Individuals, partnerships, and corporations 34,980 29.751 32.972 35,143 34,733 34,184 32,191 30,306 29,724 48 States and political subdivisions 598 424 587 494 424 610 552 522 437 49 U.S. government 152 379 680 507 500 808 365 942 532 50 Commercial banks in the United States 5,391 4.044 5,309 4,824 5,434 4,122 3.883 3,883 3,800 51 Banks in foreign countries 7.549 6,626 6,840 6,790 6,387 5,934 5,602 6,046 5,412 52 Foreign governments and official institutions 714 1,334 1.011 848 919 823 861 1,103 795 53 Certified and officers' checks 4,257 2,883 3,688 4,581 3,661 2,584 2.164 2,406 2,207 54 Time and savings deposits 66,995 67.033 67,278 67.310 66,460 65,224 65.927 65,693 66,930 55 Savings 9,278 9.263 9,346 9,260 9,318 9,707 9,648 9,540 9,357 56 Individuals and nonprofit organizations 8,905 8.896 8,984 8,910 8,966 9,341 9,277 9,185 9,005 5/ Partnerships and corporations operated for profit 256 259 255 249 256 255 252 237 237 58 Domestic governmental units 114 105 104 99 94 109 116 114 112 59 All other 3 3 3 3 2 2 3 4 3 60 Time 57,717 57,771 57,932 58,050 57.142 55,517 56,279 56,153 57,573 61 Individuals, partnerships, and corporations 49,862 49,753 49,810 49.848 49,056 47,727 48,506 48,458 49,596 62 States and political subdivisions 2,141 2.135 2,139 2,098 2.073 1,916 1.923 1,961 2,121 63 U.S. government 18 18 21 25 25 25 40 54 56 64 Commercial banks in the United States 3,303 3,460 3,487 3,573 3,504 3,462 3,420 3,408 33,,550088 65 Foreign governments, official institutions, and banks 2,393 2.404 2.476 2,506 2.484 2,387 2,390 22,,227722 22,,229911 Liabilities for borrowed money 66 200 2.145 1 280 2 317 600 1 512 67 Treasury tax-and-loan notes 1,338 229 1.810 2,654 2,856 954 1,832 2,902 3,021 68 All other liabilities for borrowed money6 41,705 41.551 40,981 39,469 42,003 45.330 41,905 4422,,668855 3399,,228844 69 Other liabilities and subordinated notes and debentures 32,097 29,473 31.088 30,241 29,678 26.827 26,956 26,648 26,741 70 Total liabilities 196,295 186,148 192,509 193,076 193,323 189,049 184,869 184,018 180,680 71 Residual (total assets minus total liabilities)7 16,943 17,115 16,986 16,953 16,638 17,057 17,111 17.077 16,978 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 1982 Adjustment bank, Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30p Jan. 6? Jan. 13? Jan. 20p Jan. 21 p 1981 BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and securities adjusted1 558877,,117700 581,838 586,670 584,991 587,893 590,232 586,262 583,266 583,499 1,529 2 Total loans (gross) adjusted1 446688,,008899 463,992 468,838 468,302 470,988 471,613 468,918 466,422 466,233 488 3 Demand deposits adjusted2 106,737 102,745 103,856 105,019 108,595 110,548 106,478 100,745 98,633 972 4 Time deposits in accounts of $100,000 or more 182,692 184,316 185,638 187,836 187,938 182,990 184,113 183,947 186,945 -965 5 Negotiable CDs 131,737 133,340 134,933 137,021 137,490 132,238 133,022 132,654 135,492 -1,382 6 Other time deposits 50,954 50,976 50,705 50,816 50,448 50,752 51,090 51,293 51,454 417 7 Loans sold outright to affiliates3 2,786 2,742 2,848 2,824 2,848 2,888 2,906 2,893 2,863 8 Commercial and industrial 2,145 2,095 2,196 2,175 2,210 2,245 2,265 2,251 2,246 9 Other 641 647 652 649 638 643 641 642 616 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and securities adjusted1 549,761 544,394 548,994 547,144 549,866 553,681 549,754 546,703 547,086 3,231 11 Total loans (gross) adjusted1 440,450 436,263 440,891 440,165 442,681 444,896 442,262 439,714 439,570 2,271 12 Demand deposits adjusted2 99,021 95,280 96,068 97,352 100,605 102,572 98,511 93,393 91,226 935 13 Time deposits in accounts of $100,000 or more 173,074 174,618 175,953 178,099 178,259 174,953 176,103 175,965 178,873 432 14 Negotiable CDs 125,285 126,820 128,436 130,473 130,940 127,240 128,045 127,733 130,512 25 15 Other time deposits 47,790 47,797 47,517 47,626 47,319 47,713 48,059 48,232 48,361 407 16 Loans sold outright to affiliates3 2,704 2,661 2,775 2,747 2,771 2,816 2,834 2,819 2,789 17 Commercial and industrial 2,080 2,031 2,140 2,114 2,150 2,189 2,207 2,191 2,185 18 Other 623 630 635 633 621 627 627 628 604 BANKS IN NEW YORK CITY 19 Total loans (gross) and securities adjusted1,4 135,481 132,220 133,376 133,082 133,630 132,719 131,821 130,267 130,170 20 Total loans (gross) adjusted1 113,343 110,481 111,535 111,207 111,973 111,102 110,334 108,818 108,645 21 Demand deposits adjusted2 31,038 27,242 28,899 30,234 29,122 30,841 27,307 26,849 25,928 22 Time deposits in accounts of $100,000 or more 45,341 45,324 45,504 45,636 44,768 43,005 43,708 43,527 45,028 23 Negotiable CDs 34,226 34,249 34,577 34,835 34,028 32,050 32,765 32,670 34,246 24 Other time deposits 11,115 11,075 10,927 10,801 10,740 10,955 10,943 10,857 10,782 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 • February 1982 1.291 LARGE WEEKLY REPORTING BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1981 1982 Account Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30? Jan. 6p Jan. 13p Jan. 20p Jan. 21P 1 Cash and due from depository institutions 8,046 6,587 7,285 6,772 6,545 6,421 6,591 6,402 6,327 2 Total loans and securities 65,226 52,756 51,311 50,757 51,178 50,150 50,055 48,682 49,443 3 U.S. Treasury securities 1,856 1,965 1,833 2,223 2,196 2,209 2,445 2,435 2,387 4 Other securities 1,045 871 863 828 801 800 826 811 816 5 Federal funds sold1 4,857 4,082 4,032 4,844 5,070 5,282 4,791 4,205 5,044 6 To commercial banks in U.S 4,364 3,631 3,615 4,474 4,442 4,926 4,554 4,014 4,758 7 To others 494 450 418 370 628 355 236 191 286 8 Other loans, gross 57,468 45,837 44,583 42,861 43,111 41,860 41,993 41,231 41,196 9 Commercial and industrial 27,906 21,632 21,454 20,369 20,463 20,291 20,108 19,488 19,716 10 Bankers acceptances and commercial paper 3,593 3,586 3,798 3,606 3,791 3,835 3,644 3,591 3,453 11 All other 24,313 18,047 17,656 16,763 16,672 16,456 16,464 15,898 16,263 12 U.S. addressees 14,205 13,848 14,075 13,683 13,971 13,902 13,886 13,395 13,645 13 Non-U.S. addressees 10,108 4,199 3,581 3,080 2,701 2,554 2,578 2,503 2,617 14 To financial institutions 20,992 18,121 17,469 17,462 17,504 16,740 16,949 16,939 16,832 15 Commercial banks in U.S 13,358 13,610 13,334 13,613 13,683 12,991 13,230 13,089 13,114 16 Banks in foreign countries 7,296 4,171 3,796 3,506 3,452 3,356 3,314 3,443 3,322 17 Nonbank financial institutions 339 340 339 343 370 394 404 406 396 18 For purchasing and carrying securities .. 683 631 637 629 687 456 492 371 332 19 All other 7,886 5,452 5,023 4,400 4,456 4,372 4,444 4,432 4,316 20 Other assets (claims on nonrelated parties) 12,091 12,128 12,134 12,268 12,202 11,858 12,266 12,064 12,074 21 Net due from related institutions 9,770 11,914 11,872 12,124 12,639 12,903 12,660 13,183 12,917 22 Total assets 95,133 83,385 82,603 81,920 82,564 81,332 81,572 80,331 80,760 23 Deposits or credit balances2 25,297 24,358 24,486 25,085 25,292 24,061 23,554 22,940 23,135 24 Credit balances 348 305 372 337 320 356 317 326 292 25 Demand deposits 2,501 2,490 2,415 2,628 2,379 2,459 2,098 1,943 1,972 26 Individuals, partnerships, and corporations 873 860 886 883 895 938 774 767 804 27 Other 1,628 1,630 1,530 1,745 1,484 1,521 1,324 1,176 1,168 28 Total time and savings 22,447 21,562 21,698 22,120 22,593 21,246 21,139 20,671 20,871 29 Individuals, partnerships, and corporations 18,312 18,003 18,082 18,450 18,866 17,936 17,926 17,452 17,744 30 Other 4,135 3,559 3,616 3,670 3,727 3,310 3,213 3,218 3,127 31 Borrowings3 34,900 32,623 31,864 31,351 31,573 33,068 32,779 33,041 32,231 32 Federal funds purchased4 7,856 6,534 6,603 5,923 5,666 8,169 7,659 8,176 7,167 33 From commercial banks in U.S 6,872 5,729 5,746 4,922 4,568 7,410 66,,777777 7,250 6,265 34 From others 984 805 857 1,001 1,097 759 888822 926 902 35 Other liabilities for borrowed money ... 27,044 26,089 25,260 25,428 25,907 24,899 25,119 24,865 25,064 36 To commercial banks in U.S 22,741 23,138 22,743 22,756 23,242 22,428 22,596 22,395 22,553 37 To others 4,303 2,951 2,517 2,672 2,665 2,470 2,524 2,470 2,511 38 Other liabilities to nonrelated parties 12,395 12,172 12,090 12,331 12,306 11,921 12,472 12,216 12,237 39 Net due to related institutions 22,541 14,231 14,163 13,153 13,393 12,282 12,767 12,134 13,158 40 Total liabilities 95,133 83,385 82,603 81,920 82,564 81,332 81,572 80,331 80,760 MEMO 41 Total loans (gross) and securities adjusted' 47,505 35,514 34,363 32,669 33,054 32,233 32,270 31,579 31,570 42 Total loans (gross) adjusted5 44,604 32,678 31,666 29,618 30,056 29,224 28,999 28,333 28,368 1. Includes securities purchased under agreements to resell. NOTE. Beginning in the week ending Dec. 9, 1981, shifts of assets and liabilities 2. Balances due to other than directly related institutions. to international banking facilities (IBFs) reduced the amounts reported in some 3. Borrowings from other than directly related institutions. items, especially in loans to foreigners and to a lesser extent in time deposits. Based 4. Includes securities sold under agreements to repurchase. on preliminary reports, the large weekly reporting branches and agencies shifted 5. Excludes loans and federal funds transactions with commercial banks in U.S. S22.2 billion of assets to their IBFs in the six weeks ending Jan. 13,1982. Domestic offices net positions with IBFs are now included in net due from or net due to related institutions. More detail will be available later. 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 AAddjjuusstt-- Industry classification 1981 1982 1981 1981 1982 ment bank1 Sept. 30 Oct. 28 Nov. 25 Dec. 30 Jan. TIP Q3 Q4 Nov. Dec. Jan.P 1 Durable goods manufacturing.... 26,111 25,910 25,570 26,864 27,113 837 754 -339 1,294 232 17 2 Nondurable goods manufacturing 23,400 22,060 22,190 21,713 21,589 2,782 -1,688 130 -477 -134 11 3 Food, liquor, and tobacco 4,431 4,310 4,282 4,190 4,148 26 -241 -29 -92 -44 2 4 Textiles, apparel, and leather.. 5,076 4,859 4,652 4,166 4,162 156 -910 -208 -485 -5 2 5 Petroleum refining 3,955 3,722 4,769 4,821 4,574 543 866 1,048 52 -247 6 Chemicals and rubber 5,749 5,056 4,624 4,341 4,487 1,700 -1,408 -431 -283 144 2 7 Other nondurable goods 4,189 4,113 3,863 4,195 4,217 356 6 -250 332 18 4 8 Mining (including crude petroleum and natural gas) 21,283 21,729 22,940 24,364 24,551 3,088 3,082 1,211 1,424 186 9 Trade 27,004 27,486 28,180 28,005 28,106 897 1,001 694 -175 35 65 10 Commodity dealers 1,657 1,666 1,901 2,292 2,297 158 634 235 390 5 i 1 Other wholesale 12,634 12,636 12,791 12,919 13,230 546 285 155 128 291 20 12 Retail 12,713 13,184 13,488 12,795 12,579 193 82 304 -693 -261 45 13 Transportation, communication, and other public utilities 21,866 21,723 22,025 23,184 23,416 1,042 1,318 302 1,158 208 24 14 Transportation 8,465 8,416 8,288 8,619 8,738 269 154 -128 331 98 22 15 Communication 3,534 3,573 3,701 3,954 4,029 -7 419 128 253 75 16 Other public utilities 9,866 9,734 10,037 10,611 10,648 780 745 303 574 36 1 17 Construction 7,248 7,164 7,138 7,193 7,065 264 -54 -26 55 -173 45 18 Services 25,340 25,426 25,593 26,482 26,649 794 1,143 167 890 63 104 19 All other2 15,818 15,962 16,098 17,070 17,274 641 1,252 136 972 -5 209 20 Total domestic loans 168,069 167,460 169,735 174,876 175,764 10,345 6,807 2,275 5,142 411 476 21 MEMO: Term loans (original maturity more than 1 year) included in domestic loans 86,137 84,630 83,834 85,086 85,148 2,734 -1,050 -796 1,253 -108 169 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 • February 1982 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1 Billions of dollars, estimated daily-average balances Commercial banks TTTyyypppeee ooofff hhhooollldddeeerrr 1980 1981 11997777 11997788 1199779922 DDeecc.. DDeecc.. DDeecc.. Mar. June Sept. Dec. Mar.3 June4 Sept. 11111 AAAAAllllllllll hhhhhooooollllldddddeeeeerrrrrsssss—————IIIIInnnnndddddiiiiivvvvviiiiiddddduuuuuaaaaalllllsssss,,,,, pppppaaaaarrrrrtttttnnnnneeeeerrrrrssssshhhhhiiiiipppppsssss,,,,, aaaaannnnnddddd cccccooooorrrrrpppppooooorrrrraaaaatttttiiiiiooooonnnnnsssss 274.4 294.6 302.2 288.4 288.6 302.0 315.5 280.8 277.5 22222 FFFFFiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll bbbbbuuuuusssssiiiiinnnnneeeeessssssssss 25.0 27.8 27.1 28.4 27.7 29.6 29.8 30.8 28.2 33333 NNNNNooooonnnnnfffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll bbbbbuuuuusssssiiiiinnnnneeeeessssssssss 142.9 152.7 157.7 144.9 145.3 151.9 162.3 144.3 148.6 44444 CCCCCooooonnnnnsssssuuuuummmmmeeeeerrrrr 91.0 97.4 99.2 97.6 97.9 101.8 102.4 86.7 n. 1a. 82.1 55555 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 2.5 2.7 3.1 3.1 3.3 3.2 3.3 3.4 3.1 66666 OOOOOttttthhhhheeeeerrrrr 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. 77777 AAAAAllllllllll hhhhhooooollllldddddeeeeerrrrrsssss—————IIIIInnnnndddddiiiiivvvvviiiiiddddduuuuuaaaaalllllsssss,,,,, pppppaaaaarrrrrtttttnnnnneeeeerrrrrssssshhhhhiiiiipppppsssss,,,,, aaaaannnnnddddd cccccooooorrrrrpppppooooorrrrraaaaatttttiiiiiooooonnnnnsssss 139.1 147.0 139.3 133.6 133.9 140.6 147.4 133.2 131.3 88888 FFFFFiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll bbbbbuuuuusssssiiiiinnnnneeeeessssssssss 18.5 19.8 20.1 20.1 20.2 21.2 21.8 21.9 20.7 99999 NNNNNooooonnnnnfffffiiiiinnnnnaaaaannnnnccccciiiiiaaaaalllll bbbbbuuuuusssssiiiiinnnnneeeeessssssssss 76.3 79.0 74.1 69.1 69.2 72.4 78.3 69.8 71.2 1111100000 CCCCCooooonnnnnsssssuuuuummmmmeeeeerrrrr 34.6 38.2 34.3 34.2 33.9 36.0 35.6 30.6 n. a. 28.7 1111111111 FFFFFooooorrrrreeeeeiiiiigggggnnnnn 2.4 2.5 3.0 3.0 3.1 3.1 3.1 3.2 2.9 1111122222 OOOOOttttthhhhheeeeerrrrr 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-end 1980. For the household category, the $15.7 billion decline in demand deposits at all commercial banks between December 1980 and March 1981 has an estimated standard error of $4.8 billion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Deposits and Commercial Paper A25 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, end of period 1981 Instrument 1977 1978 19791 1980 Dec. Dec. Dec. Dec. June July Aug. Sept. Oct. Nov. Dec. Commercial paper (seasonally adjusted) 1 All issuers 65,051 83,438 112,087 123,597 145,737 151,013 157,121 165,379 164,026 164,349 164,036 Financial companies2 Dealer-placed paper3 2 Total 8,796 12,181 17,161 19,236 25,933 26,006 27,813 30,213 28,909 28,745 28,613 3 Bank-related 22,,113322 3,521 2,874 3,561 44,,775500 55,,226677 66,,003377 66,,116611 55,,662266 55,,772255 6,036 Directly placed paper4 4 Total 40,574 51,647 64,748 67,888 74,952 79,571 80,769 83,311 83,053 82,290 81,702 5 Bank-related 7,102 12,314 17,598 22,382 24,107 26,104 25,153 26,426 25,397 26,224 26,901 6 Nonfinancial companies5 15,681 19,610 30,178 36,473 44,852 45,436 48,539 51,855 52,064 53,314 53,721 Bankers dollar acceptances (not seasonally adjusted) 7 Total 25,450 33,700 45,321 54,744 63,427 63,721 64,577 65,048 66,072 68,749 Holder 8 Accepting banks 10,434 8,579 9,865 10,564 11,595 10,505 9,959 10,022 10,511 11,253 9 Own bills 8,915 7,653 8,327 8,963 10,207 9,437 9,214 9,040 9,522 10,268 10 Bills bought 1,519 927 1,538 1,601 1,389 1,068 745 982 989 985 Federal Reserve Banks 11 Own account 954 1 704 776 0 453 0 0 0 0 n.a. 12 Foreign correspondents 362 664 1,382 1,791 1,272 1,459 1,451 1,243 1,428 1,408 13 Others 13,700 24,456 33,370 41,614 50,560 51,303 53,167 53,783 54,133 56,089 Basis 14 Imports into United States 6,378 8,574 10,270 11,776 12,996 13,059 13,313 13,992r 14,699 ' 14,851 15 Exports from United States 5,863 7,586 9,640 12,712 13,388 13,296 13,774 13,514 13,981 14,936 16 All other 13,209 17,540 25,411 30,257 37,043 37,365 37,490 37,542 37,391 38,962 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 NonfinancialS tatistics • February 1982 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Effective date Rate Effective Date Rate Month Average rate 1981—May 19. 20.00 1981—Nov. 3 17.50 1980—Oct 13.79 1981—July 22. 20.50 9 17.00 Nov 16.06 Aug. June 3 20.00 16.50- Dec 20.35 Sept. July 8 20.50 17 17.00 Oct. Sept. 15 20.00 20 16.50 1981—Jan 20.16 Nov. 22 19.50 24 16.00 Feb 19.43 Dec. Oct. 5. 19.00 Dec. 1 15.75 Mar 18.05 13. 18.00 Apr 17.15 1982—Jan. 1982—Feb. 2. 16.50 May 19.61 June 20.03 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 2-7, 1981 Size of loan (in thousands of dollars) All IItteemm sizes 1,000 1-24 25-49 50-99 100-499 500-999 and over SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS 1 Amount of loans (thousands of dollars) $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 4488..22 5566..55 57.0 7722..11 3311..11 7 Made under commitment 48.1 31.3 35.9 35.8 45.9 71.9 48.8 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 8855..66 6666..66 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 2211..22 45.2 4488..55 9922..88 22 Secured by real estate 82.4 95.9 98.5 98.9 78.9 67.5 23 Made undeT 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 1-9 10-24 25-49 50-99 100-249 and over 28 Amount of loans (thousands of dollars) $1,260,648 $156,504 $179,965 $197,569 $162,025 $301,038 $263,546 79 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 Feeder livestock 18.50 18.56 18.19 18.35 18.41 18.14 1199..1100 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 1982 1982, week ending IInnssttrruummeenntt 11997799 11998800 11998811 Oct. Nov. Dec. Jan. Jan. 1 Jan. 8 Jan. 15 Jan. 22 Jan. 29 MONEY MARKET RATES 1 Federal funds1-2 11.19 13.36 16.38 15.08 13.31 12.37 13.22 12.54 12.98 12.42 12.96 13.98 Commercial paper3 4 2 1-month 10.86 12.76 15.69 14.80 12.35 12.16 12.90 12.59 12.47 12.53 12.98 13.64 3 3-month 10.97 12.66 15.32 14.85 12.16 12.12 13.09 12.66 12.55 12.75 13.24 13.83 4 6-month 10.91 12.29 14.76 14.72 11.96 12.14 13.35 12.78 12.81 13.18 13.56 13.87 Finance paper, directly placed3'4 5 1-month 10.78 12.44 15.30 14.63 12.13 11.89 12.67 12.22 12.20 12.27 12.76 13.43 6 3-month 10.47 11.49 14.08 14.04 11.80 11.31 12.56 12.00 12.17 12.33 12.64 13.11 7 6-month 10.25 11.28 13.73 13.96 11.72 11.24 12.56 11.82 12.07 12.42 12.66 13.11 Bankers acceptances4-5 8 3-month 11.04 12.78 15.32 14.78 12.00 12.13 13.06 12.63 12.43 12.85 13.29 13.68 9 6-month n.a. n.a. 14.66 14.62 11.84 12.27 13.31 12.90 12.85 13.29 13.52 13.57 Certificates of deposit, secondary market6 1(1 1-month 11.03 1122..9911 15.91 14.97 12.45 12.27 13.03 12.64 12.57 12.67 13.08 13.80 11 3-month 11.22 13.07 15.91 15.39 12.48 12.49 13.51 13.03 12.91 13.22 13.66 14.24 12 6-month 11.44 12.99 15.77 15.71 12.65 13.07 14.25 13.80 13.72 14.21 14.48 14.58 13 Eurodollar deposits, 3-month2 11.96 14.00 16.79 16.34 13.33 13.24 14.29 13.14 13.55 13.85 14.23 15.10 U.S. Treasury bills4 Secondary market7 14 3-month 10.07 11.43 14.03 13.54 10.86 10.85 12.28 11.35 11.59 12.07 12.66 12.79 15 6-month 10.06 11.37 13.80 13.82 11.30 11.52 12.83 12.25 12.37 12.85 13.13 12.96 16 1-year 9.75 10.89 13.14 13.62 11.20 11.57 12.77 12.23 12.34 12.84 13.11 12.78 Auction average8 17 3-month 10.041 11.506 14.077 13.873 11,269 10.926 12.412 11.690 11.658 12.121 12.505 13.364 18 6-month 10.017 11.374 13.811 14.013 11.530 11.471 12.930 12.448 12.282 12.806 13.102 13.530 1199 99..881177 1100..774488 1133..115599 1144..558800 1144..007777 1111..550044 1133..114433 1122..550011 1133..114433 CAPITAL MARKET RATES U.S. Treasury notes and bonds9 Constant maturities10 20 1-year 10.67 12.05 14.78 15.38 12.41 12.85 14.32 13.68 13.80 14.39 14.72 14.37 21 2-year 10.12 11.77 14.56 15.54 12.88 13.29 14.57 13.88 14.12 14.67 14.93 14.55 •)•> 2-'/2-year11 14.00 14.75 14.55 23 3-year 9.71 11.55 14.44 15.50 13.11 13.66 14.64 14.09 14.32 14.73 14.92 14.57 24 5-year 9.52 11.48 14.24 15.41 13.38 13.60 14.65 14.04 14.46 14.79 14.81 14.52 25 7-year 9.48 11.43 14.06 15.33 13.42 13.62 14.67 14.04 14.54 14.84 14.80 14.48 26 10-year 9.44 11.46 13.91 15.15 13.39 13.72 14.59 14.07 14.47 14.76 14.73 14.42 27 20-year 9.33 11.39 13.72 15.13 13.56 13.73 14.57 14.11 14.53 14.74 14.62 14.37 28 30-year 9.29 11.30 13.44 14.68 13.35 13.45 14.22 13.78 14.15 14.38 14.28 14.09 Composite12 29 Over 10 years (long-term) 8.74 10.81 12.87 14.13 12.68 12.88 13.73 13.26 13.65 13.89 13.81 13.57 State and local notes and bonds Moody's series13 3(1 Aaa 5.92 7.85 10.43 12.05 10.98 11.70 12.30 11.95 12.00 12.50 12.50 12.20 31 Baa 6.73 9.01 11.76 13.34 12.69 13.30 13.95 14.00 14.00 14.00 14.00 13.80 32 Bond Buyer series14 6.52 8.59 11.33 12.83 11.89 12.91r 13.28 13.30 13.36 13.44 13.16 13.15 Corporate bonds Seasoned issues15 33 All industries 10.12 12.75 15.06 16.20 15.35 15.38 16.05 15.69 15.86 16.07 16.16 16.14 34 Aaa 9.63 11.94 14.17 15.40 14.22 14.23 15.18 14.50 14.81 15.29 15.36 15.27 35 Aa 9.94 12.50 14.75 15.82 14.97 15.00 15.75 15.38 15.59 15.70 15.87 15.84 36 A 10.20 12.89 15.29 16.47 15.82 15.75 16.19 16.00 16.07 16.16 16.25 16.27 37 Baa 10.69 13.67 16.04 17.11 16.39 16.55 17.10 16.86 16.95 17.12 17.14 17.17 Aaa utility bonds16 38 10.03 12.74 15.56 16.94 15.56 15.20 15.68 15.68 39 Recently offered issues 10.02 12.70 15.56 17.24 15.49 15.18 15.88 15.65 16.04 16.12 16.00 15.59 MEMO: Dividend/price ratio17 4(1 Preferred stocks 9.07 1100..5577 n.a. 13.09 12.76 12.83 13.19 13.30 13.22 13.16 13.26 13.13 41 Common stocks 5.46 5.25 n.a. 5.65 5.54 5.57 5.95 5.65 5.80 6.02 5.99 5.98 1. Weekly and monthly figures are averages of all calendar days, where the rate 11. Each weekly figure is calculated on a biweekly basis and is the average of for a weekend or holiday is taken to be the rate prevailing on the preceding business five business days ending on the Monday following the calendar week. The biweekly day. The daily rate is the average of the rates on a given day weighted by the rate is used to determine the maximum interest rate payable in the following twovolume of transactions at these rates. week period on small saver certificates. (See table 1.16.) 2. Weekly figures are statement week averages—that is, averages for the week 12. Unweighted averages of yields (to maturity or call) for all outstanding notes ending Wednesday. and bonds neither due nor callable in less than 10 years, including several very low 3. unweighted average of offering rates quoted by at least five dealers (in the yielding "flower" bonds. case of commercial paper), or finance companies (in the case of finance paper). 13. General obligations only, based on figures for Thursday, from Moody's Before November 1979, maturities for data shown are 30-59 days, 90-119 days, Investors Service. and 120-179 days for commercial paper; and 30-59 days, 90-119 days, and 150- 14. General obligations only, with 20 years to maturity, issued by 20 state and 179 days for finance paper. local governmental units of mixed quality. Based on figures for Thursday. 4. Yields are quoted on a bank-discount basis, rather than an investment yield 15. Daily figures from Moody's Investors Service. Based on yields to maturity basis (which would give a higher figure). on selected long-term bonds. 5. Dealer closing offered rates for top-rated banks. Most representative rate 16. Compilation of the Federal Reserve. Issues included are long-term (20 years (which may be, but need not be, the average of the rates quoted by the dealers). or more). New-issue yields are based on quotations on date of offering; those on 6. Unweighted average of offered rates quoted by at least five dealers early in recently offered issues (included only for first 4 weeks after termination of underthe day. writer price restrictions), on Friday close-of-business quotations. 7. Unweighted average of closing bid rates quoted by at least five dealers. 17. Standard and Poor's corporate series. Preferred stock ratio based on a sample 8. Rates are recorded in the week in which bills are issued. of ten issues: four public utilities, four industrials, one financial, and one trans- 9. Yields are based on closing bid prices quoted by at least five dealers. portation. Common stock ratios on the 500 stocks in the price index. 10. Yields adjusted to constant maturities by the U.S. Treasury. That is, yields are read from a yield curve at fixed maturities. Based on only recently issued, actively traded securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic NonfinancialS tatistics • February 1982 1.36 STOCK MARKET Selected Statistics 1981 1982 y J- . 11997799 June July Aug. Sept. Oct. Nov. Dec. Jan. 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 76.80 74.98 75.24 68.37 69.40 71.49 71.81 67.91 2 Industrial 61.82 78.64 85.44 88.63 86.64 86.72 78.07 78.94 80.86 81.70 76.85 3 Transportation 45.20 60.52 72.61 76.71 74.42 73.27 63.67 65.65 67.68 68.27 62.04 4 Utility 36.46 37.35 38.90 39.23 38.90 40.22 38.17 38.87 40.73 40.22 39.30 5 Finance 58.65 64.28 73.52 79.79 74.97 73.76 69.38 72.58 76.47 74.74 70.99 6 Standard & Poor's Corporation (1941-43 = 10)1 107.94 118.71 128.05 132.28 129.13 129.63 118.27 119.84 122.92 123.79 117.41 7 American Stock Exchange (Aug. 31, 1973 = 100) 186.56 300.94 343.50 369.64 364.33 364.60 313.60 308.81 321.01 321.84 296.49 Volume of trading (thousands of shares) 8 New York Stock Exchange 32,233 44,867 47,237 50,517 43,930 44,489 46,042 46,233 50,791 43,596 48,723 9 American Stock Exchange 4,182 6,377 5,346 6,096 4,374 5,137 5,556 4,233 5,257 4,992 4,497 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers-dealers2 11,619 14,721 14,321 15,126 15,134 14,545 13,973 13,866 14,044 14,321 f 11 Margin stock3 11,450 14,500 14,060 14,870 14,870 14,270 13,710 13,600 13,780 14,060 12 Convertible bonds 167 219 259 254 263 274 263 263 261 259 1 22 2 2 2 1 1 3 3 2 Free credit balances at brokers4 14 Margin-account 1,105 2,105 3,515 2,350 2,670 2,645 2,940 2,990 3,290 3,515 15 Cash-account 4,060 6,070 7,150 6,650 6,470 6,640 6,555 6,100 6,865 7,150 Margin-account debt at brokers (percentage distribution, end of period) 16 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 f[ By equity class (in percentp 17 Under 40 16.0 14.0 37.0 25.0 25.0 38.5 47.0 32.0 30.0 37.0 1 18 40-49 29.0 30.0 21.0 29.0 29.0 24.0 22.0 28.0 25.0 21.0 n.a. 19 50-59 27.0 25.0 20.0 21.0 22.0 15.0 13.0 18.0 21.0 20.0 1 20 60-69 14.0 14.0 10.0 11.0 11.0 10.0 8.0 10.0 11.0 10.0 21 70-79 8.0 9.0 6.0 7.0 7.0 6.0 5.0 6.0 6.0 6.0 1 22 80 or more 7.0 8.0 6.0 7.0 6.0 6.0 5.0 6.0 7.0 6.0 t Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6 16,150 21,690 25,870 23,700 24,460 24,760 25,234 24,962 25,409 25,870 Distribution by equity status (percent) 24 Net credit status 44.2 58.0 53.2 53.8 53.5 55.0 55.0 57.0 58.0 n.a. Debt status, equity of 25 60 percent or more 47.0 44.4 31.0 38.4 37.9 37.0 33.0 35.0 33.0 31.0 It 26 Less than 60 percent 7.7 11.0 8.4 8.3 9.5 12.0 10.0 10.0 11.0 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 proequity instruments and secured at least in part by stock. Credit extended is end- ceeds) occur. of-month data for member firms of the New York Stock Exchange. 7. Regulations G, T, and U of the Federal Reserve Board of Governors, pre- In addition to assigning a current loan value to margin stock generally, Regu- scribed in accordance with the Securities Exchange Act of 1934, limit the amount lations T and U permit special loan values for convertible bonds and stock acquired of credit to purchase and carry margin stocks that may be extended on securities through exercise of subscription rights. as collateral by prescribing a maximum loan value, which is a specified percentage 3. A distribution of this total by equity class is shown on lines 17-22. of the market value of the collateral at the time the credit is extended. Margin 4. Free credit balances are in accounts with no unfulfilled commitments to the requirements are the difference between the market value (100 percent) and the brokers and are subject to withdrawal by customers on demand. maximum loan value. The term "margin stocks" is defined in the corresponding regulation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Institutions A29 1.37 SELECTED FINANCIAL INSTITUTIONS Selected Assets and Liabilities Millions of dollars, end of period 1981 A 11997799 11998800 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.'' Savings and loan associations 1 Assets 578,962 629,829 636,859 639,827 644,603 646,704 648,793 651,986 654,605 657,997 659,246 662,288 2 Mortgages 475,688 502,812 507,152 509,525 511,754 514,803 516,527 517,701 518,379 518,780 518,683 517,637 3 Cash and investment securities1 46,341 57,572 58,461 56,886 59,045 57,616 57,453 58,558 59,161 61,125 60,978 62,411 4 Other 56,933 69,445 71,246 72.416 73,804 74,285 74,813 75,727 77,065 78,092 79,585 82,240 5 Liabilities and net worth 578,962 629,829 636,859 639,827 644,603 646,704 648,793 651,986 654,605 657,997 659,246 662,288 6 Savings capital 470,004 510,959 518,990 516,071 517,628 517,632 514,103 512.745 514,941 518,556 519,043 523,546 7 Borrowed money 55,232 64,491 64,197 67,704 70,025 74,756 79,554 83,287 87,296 85,926 86,073 8 8,954 8 FHLBB 40,441 47,045 47,310 49,607 51,064 53,836 57,188 60,025 61,857 62,000 61,922 62,835 9 Other 14,791 16,309 8,097 18,097 18,961 20,920 22,366 23,262 25,439 23,926 24,151 26,119 10 Loans in process 9,582 8,120 7,840 7,840 7,997 8,008 7,766 7,382 7,073 6,790 6,493 6,407 11 Other 11,506 12,227 13,271 14,946 17,089 14,756 16,365 18,067 15,097 17,298 18,878 15,020 12 Net worth2 32,638 33,319 32,645 32,266 31,864 31,552 31,005 30,505 30,198 29,427 28,759 28,361 13 MEMO: Mortgage loan commitments outstanding3 16,007 16,102 17,374 18,552 18,740 18,020 17,224 16,681 16,015 15,731 15,756 14,879 Mutual savings banks4 14 Assets 163,405 171,564 173,232 172,837 173,776 174,387 174,578 174,761 175,234 175,693 175,258 Loans 15 Mortgage 98,908 99,865 99,719 99,798 99,790 99,993 100,095 99,987 99,944 99,903 99,879 16 Other 9,253 11,733 13,248 12,756 13,375 14,403 14,359 14,560 14,868 14,725 15,073 Securities 17 U.S. government5 7,658 8.949 9,203 9,262 9,296 9,230 9,361 9,369 9,594 9,765 9,508 18 State and local government 2,930 2,390 2,359 2,314 2,328 2,337 2,291 2,326 2,323 2,394 2,271 19 Corporate and other6 37,086 39.282 39,236 39,247 39,111 38,418 38,374 38,180 38,118 38,108 37,874 20 Cash 3,156 4,334 4,238 4,172 4,513 4,473 4,629 4,791 4,810 5,118 5,039 n. a. 21 Other assets 4,412 5.011 5,231 5,288 5,364 5,534 5,469 5,547 5.577 5,681 5,615 22 Liabilities 163,405 171,564 173,232 172,837 173,776 174,387 174,578 174,761 175,234 175,693 175,258 146,006 153,501 154,805 153,692 153,891 154,926 153,757 153,120 153,412 154,066 153,809 144,070 151,416 152,630 151,429 151.658 152,603 151,394 150,753 151,072 151,975 151,787 25 Ordinary savings 61,123 53,971 53,049 52,331 51,212 51,594 50,593 49,003 49,254 48,238 48,456 26 Time and other 82,947 97,445 99,581 99,098 100,447 101,009 100,800 101,750 101,818 103,737 126,889 27 Other 1,936 2,086 2,174 2,264 2,232 2,323 28,494 27,073 25,769 24,806 2,023 28 Other liabilities 5,873 6,695 7,265 8,103 8,922 8,634 10,156 11,125 11,458 11,513 11,434 29 General reserve accounts 11,525 11,368 11,163 11,042 10,923 10,827 10,665 10,516 10,364 10,114 10,015 30 MEMO: Mortgage loan commitments outstanding8 3,182 1,476 1,379 1,614 1,709 1,577 1,401 1,333 1,218 1,140 1,207 Life insurance companies 31 Assets 432,282 479,210 490,149 493,185 497,276 500,316 503,994 506,585 509,478 515,079 519,281 Securities 32 Government 0,338 21,378 22,775 22,603 22,948 23,415 23,691 23,949 24,280 24,621 25,200 33 United States9 4,888 5.345 6,807 6,502 6,787 7,119 7,359 7,544 7,670 7,846 8,321 34 State and local 6,428 6,701 6,199 6,809 6,815 6,876 6,865 6,904 7,033 7,129 7,148 35 Foreign10 9,022 9,332 9,269 9,292 9,346 9,420 9,467 9,501 9,577 9,646 9,731 36 Business 222.332 238,113 243,996 245,841 247,437 248,737 250,186 250,371 250,315 253,976 255,632 n a. 37 Bonds 178,371 190,747 196,514 198,397 199,818 201,402 203,016 204,501 205,908 208,004 209,194 38 Stocks 39,757 47.366 47,482 47,444 47,619 47,335 41,170 45,870 44,407 45,972 46,438 39 Mortgages 118,421 131.080 133,230 133,896 134,492 135,318 135,928 136,516 136,982 137,736 138,433 40 Real estate 13,007 15,033 16,244 16,464 16,738 16,966 17,429 17,626 17,801 18,382 18,629 41 Policy loans 34,825 41,411 43,231 43,772 44,292 44,970 45,591 46,252 47,042 47,731 48,275 42 Other assets 27,563 31,702 30,673 30,609 31,369 30,910 31,169 31,971 33,058 32,633 33,112 Credit unions 43 Total assets/liabilities and capital 65,854 71,709 73,214 72,783 73,565 74,041 73,616 73,240 73,719 73,715 74,402 75,238 44 Federal 35,934 39,801 40,624 40,207 40,648 40,948 40,510 40,233 40,513 40,555 40,843 41,200 45 State 29,920 31,908 32,590 32,576 32,917 33,093 33,106 33,007 33,206 23,160 33,559 34,038 46 Loans outstanding 53,125 47,774 47,815 47,994 48,499 49,064 49,507 49,976 50,169 49,799 49,410 49,230 47 Federal 28,698 25,627 25,618 25,707 26,038 26,422 26,661 26,974 27,137 26,956 26,783 26,733 48 State 24,426 22,147 22,197 22,287 22,461 22,642 22,846 23.002 23,032 22,843 22,627 22,497 49 Savings 56,232 64,399 65,744 65,495 65,988 66,472 65,854 65,138 65,686 65,797 66,141 67,009 50 Federal (shares) 35,530 36,348 36,898 36,684 36,967 37,260 36,819 36,373 36,584 36,671 36,910 37,229 51 State (shares and deposits) 25,702 28,051 28,846 28,811 29.021 29,212 29,035 28,765 29,102 29,126 29,231 29,780 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • February 1982 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year FFFiiissscccaaalll FFFiiissscccaaalll FFFiiissscccaaalll TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn yyyeeeaaarrr yyyeeeaaarrr yyyeeeaaarrr 111999777999 111999888000 111999888111 1980 1981 1981 H2 HI H2 Oct. Nov. Dec. U.S. budget 1 Receipts' 463,302r 517,112r 599,272' 262,152 318,899 303,903 45,467 44,317 57,407 2 Outlays1'2 490,997r 576,675r 657,204r 310,972 334,710 360,684 63,573 54,959 76,875 3 Surplus, or deficit (-) -27,694 - 59,563' -57,932 -48,821 -15,811 -56,780 -18,106 -10,642 -19,468 4 Trust funds 18,335 8,791 7,168 -2,551 5,797 -8,085 -4,269 -2,352 -7,675 5 Federal funds3 -46,069 -67,752 -65,099 -46,306 -21,608 -48,697 -13,837 -8,290 -11,793 Off-budget entities (surplus, or deficit 6 Federal Financing Bank outlays -13,261 -14,549 -20,769 -7,552 -11,046 -8,728 -638 -1,189 -727 7 Other4-5 793 303 -236 376 -900 -1,752 -5 -691 -320 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-) -40,162 - 73,808r -78,936'' -55,998 -27,757 -67,260 -18,749 --1122,,552222 --2200,,551166 Source or financing 9 Borrowing from the public 33,641 70,515 79,329 54,764 33,213 54,081 10,374 1100,,997722 1144,,227744 10 Cash and monetary assets (decrease, or increase (-))° -408 -355 -1,878 -6,730 2,873 -1,111 1,483 8,129 -3,889 11 Other7 6,929 3,648' 1,485 7,964 - 8,328 14,290 6,892 -6,579 10,131 MEMO: 12 Treasury operating balance (level, end of period) 24,176 20,990 18,670 12,305 16,389 12,046 16,335 7,796 12,046 13 Federal Reserve Banks 6,489 4,102 3,520 3,062 2,923 4,301 3,550 3,475 4,301 14 Tax and loan accounts 17,687 16,888 15,150 9,243 13,466 7,745 12,785 4,321 7,745 1. The Budget of the U.S. Government, Fiscal Year 1983, has reclassified sup- 6. Includes U.S. Treasury operating cash accounts; special drawing rights; gold plemental medical insurance premiums and voluntary hospital insurance premiums, tranche drawing rights; loans to International Monetary Fund; and other cash and previously included in other social insurance receipts, as offsetting receipts in the monetary assets. health function. 7. Includes accrued interest payable to the public; allocations of special drawing 2. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re- rights; deposit funds; miscellaneous liability (including checks outstanding) and classified from an off-budget agency to an on-budget agency in the Department of asset accounts; seigniorage; increment on gold; net gain/loss for U.S. currency Labor. valuation adjustment; net gain/loss for IMF valuation adjustment; and profit on 3. Half-year figures are calculated as a residual (total surplus/deficit less trust the sale of gold. fund surplus/deficit). 4. Includes Postal Service Fund; Rural Electrification and Telephone Revolving SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. Fund; and Rural Telephone Bank. Government," Treasury Bulletin, and the Budget of the United States Government, 5. Other off-budget includes petroleum acquisition and transportation, strategic Fiscal Year 1983. petroleum reserve effective November 1981. 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. Before 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, before 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 111999888111rrr H2 HI H2 Oct. Nov. Dec. RECEIPTS 1 All sources1 463,302 R 517,112 599,272 262,152 318,899 303,903 45,467 44,317 57,407 2 Individual income taxes, net 217,841 244,069 285,917 131,962 142,889 147,035 22,555 21,775 25,770 3 Withheld 195,295 223,763 256,332 120,924 126,101 134,199 21,817 21,387 24,590 4 Presidential Election Campaign Fund... 36 39 41 4 36 5 0 0 0 5 Nonwithheld 56,215 63,746 76,844 14,592 59,907 17,391 1,283 846 1,602 6 Refunds 33,705 43,479 47,299 3,559 43,155 4,559 545 458 423 Corporation income taxes 7 Gross receipts 71,448 72,380 73,733 28,579 44,048 31,056 2,934 1,877 11,087 8 Refunds 55,,777711 7,780 12,596 4,518 6,565 6,847 1,669 1,133 867 9 Social insurance taxes and contributions, net 113388,,993399rr 157,803 182,720 77,262 102,911 93,718 15,369 15,795 14,641 10 Payroll employment taxes and contributions2 111155,,004411 133,042 156,953 66,831 83,851 82,984 13,872 13,610 13,504 11 Self-employment taxes and contributions3 5,034 5,723 6,041 188 6,240 244 443 0 0 12 Unemployment insurance 15,387 15,336 16,129 6,742 9,205 6,355 439 1,563 221 13 Other net receipts14 3,477r 3,702 3,598 3,502 3,615 4,135 616 622 917 14 Excise taxes 18,745 24,329 40,839 15,332 21,945 22,097 3,486 3,334 3,633 15 Customs deposits 7,439 7,174 8,083 3,717 3,926 4,661 784 729 823 16 Estate and gift taxes 5,411 6,389 6,787 3,499 3,259 3,742 643 598 642 17 Miscellaneous receipts5 9,252 12,748 13,790 6,318 6,487 8,441 1,365 1,341 1,679 OUTLAYS 18 All types1-6 490,997 R 576,675 657,204 310,972 334,710 360,684 64,216 54,959 76,875 19 National defense 117,681 135,856 159,765 72,457 80,005 87,421 14,722 14,205 16,258 20 International affairs 6,091 10,733 11,130 5,430 5,999 4,655 1,019 745 830 21 General science, space, and technology ... 5,041 5,722 6,359 3,205 3,314 3,388 830 592 613 22 Energy 6,856 6,313 10,277 3,997 5,677 4,394 1,276 173 399 23 Natural resources and environment 12,091 13,812 13,525 7,722 6,476 7,296 1,562 955 1,289 24 Agriculture 6,238 4,762 5,572 1,892 3,101 5,181 820 1,637 2,681 25 Commerce and housing credit 2,579r 7,788 3,946 3,163 1,940 1,825 1,154 -243 1,051 26 Transportation 17,459 21,120 23,381 11,547 11,991 10,753 1,727 1,559 1,871 27 Community and regional development.... 9,542' 10,068 9,394 5,370 4,621 4,269 990 707 688 28 Education, training, employment, social services 29,685 30,767 31,402 15,221 15,928 13,878 2,655 2,274 2,245 29 Health1 46,962r 55,220 65,982 31,263 34,708 37,448 6,276 6,173 6,421 30 Income security6 160,159 193,100 225,099 107,912 113,490 129,269 20,847 18,462 33,175 31 Veterans benefits and services 19,928 21,183 22,988 11,731 10,531 12,880 3,013 854 3,217 32 Administration of justice 4,153 4,570 4,698 2,299 2,344 2,290 387 371 352 33 General government 4,093r 4,505 4,614 2,432 2,692 2,311 508 339 384 34 General-purpose fiscal assistance 8,372 8,584 6,856 4,191 3,015 3,043 1,314 259 28 35 Interest 52,566' 64,504 82,537 35,909 41,178 47,667 6,157 7,869 13,081 36 Undistributed offsetting receipts7 -18,488r -21,933 -30,320 -14,769 -12,432 -17,281 -1,039 -1,973 -7,710 1. The Budget of the U.S. Government, Fiscal Year 1983 has reclassified sup- classified from an off-budget agency to an on-budget agency in the Department of plemental medical insurance premiums and voluntary hospital insurance premiums, Labor. previously included in other social insurance receipts, as offsetting receipts in the 7. Consists of interest received by trust funds, rents and royalties on the Outer health function. Continental Shelf, and U.S. government contributions for employee retirement. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. 3. Old-age, disability, and hospital insurance. SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. 4. Supplementary medical insurance premiums, federal employee retirement Government" and the Budget of the U.S. Government, Fiscal Year 1983. contributions, and Civil Service retirement and disability fund. 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts. o. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Financial Statistics • February 1982 1.41 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 7 Held by agencies 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 8 Debt subject to statutory limit 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 1982 TTyyppee aanndd hhoollddeerr 11997777 11997788 11997799 11998800 Sept. Oct. Nov. Dec. Jan. 1 Total gross public debt 718.9 789.2 845.1 930.2 997.9 1,005.0 1,013.3 1,028.7 1,038.4 By type 2 Interest-bearing debt 771155..22 782.4 844.0 928.9 996.5 999.5 1,011.9 1,027.3 1,032.7 3 Marketable 459.9 487.5 530.7 623.2 683.2 689.6 704.8 720.3 726.5 4 Bills 161.1 161.7 172.6 216.1 223.4 229.1 233.9 245.0 250.6 5 Notes 251.8 265.8 283.4 321.6 363.6 362.6 370.8 375.3 374.4 6 Bonds 47.0 60.0 74.7 85.4 96.2 97.9 100.1 99.9 101.6 7 Nonmarketable1 255.3 294.8 313.2 305.7 313.3 309.9 307.1 307.0 306.1 8 2.2 2.2 2.2 9 State and local government series 13.9 24.3 24.6 23.8 23.2 23.1 23.0 23.0 22.7 10 Foreign issues3 22.2 29.6 28.8 24.0 20.5 20.5 20.3 19.0 18.9 11 Government 21.0 28.0 23.6 17.6 15.5 15.5 15.3 14.9 14.8 12 Public 1.2 1.6 5.3 6.4 5.0 5.0 5.0 4 1 4 1 13 Savings bonds and notes 77.0 80.9 79.9 72.5 68.3 68.0 68.0 68.1 67.8 14 Government account series4 139.8 157.5 177.5 185.1 201.1 198.1 195.5 196.7 196.4 15 Non-interest-bearing debt 3.7 6.8 1.2 1.3 1.4 5.6 1.4 1.4 5.7 By holder5 16 U.S. government agencies and trust funds 154.8 170.0 187.1 192.5 208.1 204.9 202.1 17 Federal Reserve Banks 102.8 109.6 117.5 121.3 124.3 122.4 126.5 18 Private investors 461.3 508.6 540.5 616.4 665.4 677.2 684.6 19 Commercial banks 101.4 93.2 96.4 116.0 112.2 111.3 110.0 20 Mutual savings banks 5.9 5.0 4.7 5.4 5.5 5.5 5.2 21 Insurance companies 15.1 15.7 16.7 20.1 20.7 19.2 19.4 n a. n. a. 22 Other companies 20.5 19.6 22.9 25.7 37.8 38.6 38.3 23 State and local governments 55.2 64.4 69.9 78.8 86.2 88.3 87.5 Individuals 24 Savings bonds 76.7 80.7 79.9 72.5 68.3 68.0 68.1 15 Other securities 28.6 30.3 36.2 56.7 72.0 73.0 73.5 26 Foreign and international6 109.6 137.8 124.4 127.7 135.5 135.3' 138.3 27 Other miscellaneous investors7 49.7 58.9 90.1 106.9 127.2 138.0r 144.3 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 IV2 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 Type of holder 11998800 11997799 11998800 Oct. Nov. Oct. Nov. All maturities 1 to 5 years 1 All holders 530,731 623,186 689,578 704,819 89,578 197,409 213,462 227,886 2 U.S. government agencies and trust funds. 11,047 9,564 9,009 8,745 2,555 1,990 1,352 1,906 3 Federal Reserve Banks 117,458 121,328 122,399 126,539 8,469 35,835 34,264 36,410 4 Private investors 402,226 492,294 558,169 569,534 133,173 159,585 177,846 189,570 5 Commercial banks 69,076 77,868 75,476 76,348 38,346 44,482 39,676 39,741 6 Mutual savings banks 3,204 3,917 4,101 3,847 1,668 1,925 1,897 1,814 7 Insurance companies 11,496 11,930 12,462 12,538 4,518 4,504 5,302 5,527 8 Nonfinancial corporations 8,433 7,758 5,610 5,497 2,844 2,203 1,128 1,212 9 Savings and loan associations 3,209 4,225 4,030 3,913 1,763 2,289 2,251 2,302 10 State and local governments 15,735 21,058 24,513 24,263 3,487 4,595 4,567 4,518 11 All others 291,072 365,539 431,104 444,001 80,546 99,577 123,024 134,455 Total, within 1 year 5 to 10 years 12 AH holders 255,252 297,385 325,037 328,572 50,440 56,037 65,118 60,112 13 U.S. government agencies and trust funds 1,629 830 919 648 871 1,404 1,398 824 14 Federal Reserve Banks 63,219 56,858 60.413 61,761 12,977 13,458 11,519 11,673 15 Private investors 190,403 239,697 263,705 266,163 36,592 41,175 52,201 47,615 16 Commercial banks 20,171 25,197 28,531 27,708 8,086 5,793 4,823 4,505 17 Mutual savings banks 836 1,246 1,577 1,439 459 455 253 229 18 Insurance companies 2,016 1,940 2,010 2,132 2,815 3,037 2,724 2,464 19 Nonfinancial corporations 4,933 4,281 2,775 2,436 308 357 316 298 20 Savings and loan associations 1,301 1,646 1,628 1,509 69 216 77 32 21 State and local governments 5,607 7,750 9,083 8,789 1,540 2,030 2,805 2,724 22 All others 155,539 197,636 218,100 222,150 24,314 29,287 41,203 37,365 Bills, within 1 year 10 to 20 years 23 All holders 172,644 216,104 229,061 233,905 27,588 36,854 43,098 43,062 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 45,605 47,661 3,272 5,919 6,535 6,580 26 Private investors 127,306 172,132 183,454 186,243 19,796 27,250 32,536 32,455 27 Commercial banks 5,938 9,856 8,057 8,083 993 1,071 1,278 1,324 28 Mutual savings banks 262 394 398 340 127 181 202 197 29 Insurance companies 473 672 669 673 1,305 1,718 1,564 1,548 30 Nonfinancial corporations 2,793 2,363 1,206 1,059 218 431 856 801 31 Savings and loan associations 219 818 265 203 58 52 39 37 32 State and local governments 3,100 5,413 6,455 6,124 1,762 3,597 4,666 4,724 33 All others 114,522 152,616 166,404 169,760 15,332 20,200 23,931 23,824 Other, within 1 year Over 20 years 34 All holders 82,608 81,281 95,976 94,667 33,254 35,500 42,863 45,187 35 U.S. government agencies and trust funds 1,629 829 917 647 1,472 1,656 1,313 1,340 36 Federal Reserve Banks 17,882 12,888 14,847 14,101 9,520 9,258 9,669 10,115 37 Private investors 63,097 67,565 80,251 79,920 22,262 24,587 31,881 33,731 38 Commercial banks 14,233 15,341 20,474 19,624 .1,470 1,325 2,041 2,198 39 Mutual savings banks 574 852 1,179 1,099 113 110 171 168 40 Insurance companies 1,543 1,268 1,341 1,459 842 730 862 866 41 Nonfinancial corporations 2,140 1,918 1,569 1,377 130 476 533 750 42 Savings and loan associations 1,081 828 1,363 1,306 19 21 35 34 43 State and local governments 2,508 2,337 2,828 2,665 3,339 3,086 3,392 3,509 44 All others 41,017 45,020 51,696 52,389 16,340 18,838 24,847 26,208 NOTE. Direct public issues only. Based on Treasury Survey of Ownership from and 724 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 Nov. 30,1981: (1) 5,323 commercialbanks, 455 mutual savings banks, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • February 1982 1.43 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1981 1981 and 1982, week ending Wednesday IItteemm 11997788 11997799 11998800 Oct. Nov. Dec. Dec. 16 Dec. 23 Dec. 30 Jan. 6 Jan. 13 Jan. 20 Immediate delivery1 1 U.S. government securities.. 10,285 13,183 18,331 27,905 35,034 27,425 27,660 23,941 26,129 29,888 29,817 24,662 By maturity 2 Bills 6,173 7,915 11,413 17,241 18,862 16.599 16,080 13,420 18,236 19,260 18,028 15,806 3 Other within 1 year 392 454 421 768 1,137 986 1,439 396 1,181 1,062 722 505 4 1-5 years 1,889 2,417 3,330 4,408 7,713 5,354 4,883 6,804 4,010 3,913 4,177 4,099 5 5-10 years 965 1,121 1,464 2,903 3,534 2,265 2,611 1,658 1,041 2,005 4,373 2,208 6 Over 10 years 867 1,276 1,704 2,587 3,789 2,222 2,647 1.663 1,661 3,649 2,517 2,045 By type of customer 7 U.S. government securities dealers 1,135 1,448 1,484 2,138 2,040 1,908 2,439 1,597 1,488 1,541 1,619 1,545 8 U.S. government securities brokers 3,838 5,170 7,610 13,499 16,519 12,316 13,422 10,981 9,631 13,298 15,417 11,534 9 All others2 5,312 6,564 9,237 12,269 16,475 13,201 11,799 11,363 15,010 15,049 12,781 11,583 10 Federal agency securities.... 1,894 2,723 3,258 3,559 4,383 2,803 3,320 1,947 2,647 2,694 2,602 2,500 11 Certificates of deposit 1,292 1,764 2,472 5,370 6,380 4,781 5,281 4,326 3,690 4,081 4,759 3,609 12 Bankers acceptances 2,087 2,643 2,042 2,153 1.708 1,589 1,872 2,210 1,697 13 Fu C tu o r m es m t e r r a c n i s al a c p ti a o p n e s r 3 1 T T i i\ 6,989 7,512 6,782 7,190 7,311 55,,664400 88,,002211 66,,883344 77,,885522 14 Treasury bills 3,825 4,905 5,024 6,917 5,340 2,990 4,074 5,107 5,255 15 Treasury coupons i 1 1 1,499 2,629 1,525 1,818 1,384 860 1,559 1,115 1,037 16 Federal agency securities.... n.a. n.a. n.a. 195 260 218 310 192 94 169 163 172 Forward transactions4 I I 1 17 U.S. government securities.. \ \ 303 569 602 343 750 914 389 205 503 18 Federal agency securities.... t 1,437 1,921 1,269 1,608 1,015 865 994 1,354 1,368 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 Oct. Nov. Dec.p Dec. 2 Dec. 9 Dec. 16 Dec. 23 Dec. 30 Positions Net immediate1 1 U.S. government securities 2,656 3,223 4,306 6,384 8.592 4.111 8,175 5,976 1.873 2,010 5,423 2 Bills 2.452 3.813 4,103 4,781 4.920 2.308 4,489 3,200 1.333 540 3,536 3 Other within 1 year 260 -325 -1,062 3,235 -3.611 -3.915 -4,107 -4,142 -4,350 -4,065 -3,048 4 1-5 years -92 -455 434 1,901 3.779 3,148 3,851 3,449 2,441 3,398 3,105 5 5-10 years 40 160 166 -12 241 -80 911 342 -200 -367 -380 6 Over 10 years -4 30 665 2,947 3,264 2,650 3,032 3,127 2,650 2,505 2,210 7 Federal agency securities 606 1,471 797 2,059 2,809 3,721 3,001 3,516 3,934 3,877 3,762 8 Certificates of deposit 2,775 2,794 3,115 4,209 4,396 5,086 4,353 4,444 5,055 5,217 5,837 1 9 0 B Co an m k m er e s r c a i c a c l e p p a ta p n er c es f 1 2 2, , 6 1 3 3 5 3 2 3 , , 2 2 1 7 1 3 2 3, . 2 5 5 8 4 7 2 3 , , 5 4 1 3 6 0 2 3 , , 7 3 1 0 2 9 2 3. . 0 8 7 6 7 1 2 33 , ,, 4 2288 2 55 8 2 33 , ,, 3 22 6 99 8 33 11 Fu T tu re re a s p u o ry s it b i i o l n ls s I i 1 1 -8,568 -7,318 -5,209 -6,483 -6,051 -4,347 -4,569 -5,506 12 Treasury coupons n.a. n.a. n.a. -3,146 -3,872 -3,626 -4,157 -4,200 -3,615 -3,404 -3,134 13 Federal agency securities 1 1 | -363 -197 -379 -278 -305 -336 -435 -469 Forwards positions 14 U.S. government securities 1 t t 1 t 1 -560 -443 -642 -435 -807 -926 -383 -513 15 Federal agency securities -362 -1,045 -1,241 -1,231 -1,135 -1.386 -1,315 -1,131 Financing2 Reverse repurchase agreements3 A 4 A 16 Overnight and continuing 19,848 20,711 25,185 23,456 24,598 26,733 24,662 26,474 17 Term agreements I I | 37,492 44,981 51,003 47,876 49,820 50,963 52,731 53,624 Repurchase agreements4 n.a. n.a. n.a. 18 Overnight and continuing i I , 41,347 43,324 50,681 50,471 52,461 53,945 44,786 51,740 19 Term agreements 1 1 1 32,892 41,525 43,358 38,498 39,065 41,089 48,533 49,607 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A35 1.45 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1981 AAggeennccyy 11997788 11997799 11998800 June July Aug. Sept. Oct. Nov. 1 Federal and federally sponsored agencies1 137,063 163,290 193,229 208,961 213,690 218,362 223,393 226,010 226,269 2 Federal agencies 23,488 24,715 28,606 29,945 29,978 30,088 30,870 31,069 31,156 3 Defense Department2 968 738 610 546 536 526 516 514 490 4 Export-Import Bank3,4 88,,771111 9,191 11,250 12,423 12,401 12,385 12.855 12,845 12,829 5 Federal Housing Administration5 558888 537 477 448 443 449 432 427 419 6 Government National Mortgage Association participation certificates6 3,141 2,979 2,817 2,715 2,715 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 1,538 8 Tennessee Valley Authority 7,460 8,997 11,190 12,060 12,130 12,260 12,599 12,830 12,965 30 United States Railway Association7 356 436 492 215 215 215 215 200 200 10 Federally sponsored agencies1 113,575 138,575 164,623 179,016 183,712 188,274 192,523 194,941 195,113 11 Federal Home Loan Banks 27,563 33,330 41,258 49,425 52,431 55,161 58,276 57,990 57,854 12 Federal Home Loan Mortgage Corporation 2,262 2,771 2,536 2,409 2,408 2,408 2,308 2,308 2,608 13 Federal National Mortgage Association 41,080 48,486 55,185 54,657 55,362 56,372 56,688 57,805 58,533 14 Federal Land Banks 20,360 16,006 12,365 10,583 10,317 10,317 10,317 9,717 9,717 15 Federal Intermediate Credit Banks 11,469 2,676 1,821 1,388 1,388 1,388 1,388 1,388 1,388 16 Banks for Cooperatives 4,843 584 584 220 220 220 220 220 220 17 Farm Credit Banks1 5,081 33,216 48,153 56,932 57,784 58,306 59,024 60,911 60,191 18 Student Loan Marketing Association8 915 1,505 2,720 3,400 3,800 4,100 4,300 4,600 4,600 19 Other 2 1 1 2 2 2 2 2 2 MEMO: 20 Federal Financing Bank debt1'9 51,298 67,383 87,460 100,333 102,853 103,597 107,309 108,171 109,495 Lending to federal and federally sponsored 21 Export-Import Bank4 6,898 8,353 10,654 11,933 11,933 11,933 12,409 12,409 12,409 22 Postal Service7 2,114 1,587 1,520 1,288 1,288 1,288 1,288 1,288 1,288 23 Student Loan Marketing Association8 915 1,505 2,720 3,400 3,800 4,100 4,300 4,600 4,600 24 Tennessee Valley Authority 5,635 7,272 9,465 10,335 10,405 10,535 10,874 11,105 11,240 25 United States Railway Association7 356 436 492 215 215 215 215 200 200 Other Lending10 26 Farmers Home Administration 23,825 32,050 39,431 45,691 47,396 47,171 48,821 48,571 49,029 27 Rural Electrification Administration 4,604 6,484 9,196 11,346 11,604 11,861 12,343 12,674 12,924 28 Other 6,951 9,696 13,982 16,125 16,212 16,494 17,059 17,324 17,805 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 Nonfinancial Statistics • February 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 June July Aug. Sept. Oct. Nov. 1 All issues, new and refunding1 48,512' 43,365r 48,367r 4,886r 3,184r 3,078r 3,874' 3,977 r 5,137 Type of issue 2 General obligation 17,854 12,109 14,100 1,389 1,066 961 567 730 1,273 3 U.S. government loans2 n.a. 53 38 1 5 8 2 2 3 4 Revenue 30,658 31,256 34,267 3,497 2,118 2,117 3,307 3,247 3,864 5 U.S. government loans2 n.a. 67 57 4 1 4 10 5 2 Type of issuer 6 State 6,632 4,314 5,304 585 353 446 92 439 518 7 Special district and statutory authority 24,156 23,434 26,972 2,711 1,728 1,688 2,722 2,404 3,326 8 Municipalities, counties, townships, school districts 17,718 15,617 16,090 1,591 1,103 943 1,060 1,133 1,291 9 Issues for new capital, total 37,629 41,505 46,736 4,812 3,174 2,426 3,868 3,890 5,109 Use of proceeds 10 Education 5,003 5,130 4,572 641 255 272 162 195 568 11 Transportation 3,460 2,441 2,621 161 537 113 214 496 284 12 Utilities and conservation 9,026 8,594 8,149 767 881 543 11,,662266 695 742 13 Social welfare 10,494 15,968 19,958 1,380 712 807 449988 951 1,850 14 Industrial aid 3,526 3,836 3,974 757 364 292 849 921 539 15 Other purposes 6,120 6,120 5,536 1,106 425 399 519 632 1,126 1. Par amounts of long-term issues based on date of sale. SOURCE. Public Securities Association. 2. Consists of tax-exempt issues guaranteed by the Farmers Home Administration. 1.47 NEW SECURITY ISSUES of Corporations Millions of dollars 1981 TTyyppee ooff iissssuuee oorr iissssuueerr,, oorr uussee 11997788 11997799 11998800 May June July Aug. Sept. Oct. Nov. 1 All issues1 47,230 51,533 73,688 5,457 9,536 4,133 3,062 4,637 4,345 8,518 2 36,872 40,208 53,199 3,080 5,601 2,376 1,616 2,797 2,848 6,724 Type of offering 3 Public 19,815 25,814 41,587 2,520 4,603 1,925 905 2,198 2,582 6,560 4 Private placement 17,057 14,394 11,612 560 998 451 711 599 266 164 Industry group 5 Manufacturing 9,572 9,678 15,409 1,269 1,313 600 308 452 21 2,054 6 Commercial and miscellaneous 5,246 3,948 6,688 138 566 206 390 201 617 949 7 Transportation 2,007 3,119 3,329 49 584 133 95 64 54 130 8 Public utility 7,092 8,153 9,556 1,063 996 383 360 1,012 1,008 802 y Communication 3,373 4,219 6,683 56 470 767 115 471 83 326 10 Real estate and financial 9,586 11,094 11,534 506 1,672 287 348 598 1,065 2,463 11 Stocks 10,358 11,325 20,490 2,377 3,935 1,757 1,446 1,840 1,497 1,794 Type 1122 Preferred 2,832 3,574 3,632 164 188 67 14 156 141 59 13 Common 7,526 7,751 16,858 2,213 3,747 1,690 1,432 1,684 1,356 1,735 Industry group 1144 Manufacturing 1,241 1,679 4,839 903 382 335 160 117 193 407 15 Commercial and miscellaneous 1,816 2,623 5,245 958 1,024 437 626 457 433 564 16 Transportation 263 255 549 47 18 29 91 87 14 15 17 Public utility 5,140 5,171 6,230 173 843 308 248 484 438 405 18 264 303 567 1 036 73 12 369 7 19 Real estate and financial 1,631 12,931 3,059 296 632 574 310 325 412 318 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 11998800 11998811 May June July Aug. Sept. Oct. Nov. Dec. INVESTMENT COMPANIES1 1 Sales of own shares2 15,266 20,596 1,785 1,910 1,639 1,457 1,449 1,768 1,729 2,140 2 Redemptions of own shares3 12,012 15,864 1,250 1,512 1,297 1,422 1,457 593 1,125 1,767 3 Net sales 3,254 4,732 535 398 342 35 -8 1,175 604 373 4 Assets4 58,400 54,966 60,081 58,887 57,494 54,221 51,659 54,335 57,408 54,966 5 Cash position5 5,321 5,285 5,448 5,199 5,109 5,058 5,409 5,799 6,269 5,285 6 Other 53,079 49,681 54,633 53,688 52,385 49,163 46,250 48,536 51,139 49,681 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 7 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 140.3 167.7 163.2 182.9 146.4 159.1 164.3 169.3r 152.6'' 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 90.7 102.4 106.6 109.7r 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 NonfinancialS tatistics • February 1982 1.50 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1980 1981 AAccccoouunntt 11997755 11997766 11997777 11997788 11997799 03 Q4 Q1 02 Q3 1 Current assets 759.0 826.8 902.1 1,030.0 1,200.9 1,254.9 1,281.6 1,321.2 1,317.4^ 1,349.2 2 Cash 82.1 88.2 95.8 104.5 116.1 113.4 121.0 120.5 118.5 118.3 3 U.S. government securities 19.0 23.4 17.6 16.3 15.6 16.4 17.3 17.0 17.7r 16.0 4 Notes and accounts receivable 272.1 292.8 324.7 383.8 456.8 478.7 491.2 507.3 507.4r 519.7 5 Inventories 315.9 342.4 374.8 426.9 501.7 524.5 525.4 542.8 540.0 557.2 6 Other 69.9 80.1 89.2 98.5 110.8 121.9 126.7 133.6 133.7 138.1 7 Current liabilities 451.6 494.7 549.4 665.5 809.1 850.5 877.2 910.9 908.1 951.1 8 Notes and accounts payable 264.2 281.9 313.2 373.7 456.3 477.2r 498.3 504.0 500.8 529.1 9 Other 187.4 212.8 236.2 291.7 352.8 373.4' 378.9 406.9 407.2 422.0 10 Net working capital 307.4 332.2 352.7 364.6 391.8 404.3 404.4 410.3 409.3r 398.1 11 MEMO: Current ratio 1 1.681 1.672 1.642 1.548 1.484 1.475 1.461 1.450 1.451 1.419 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 04 Q1 Q2> Q3 Q41 Ql1 Q2> 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 receivable AAAccccccooouuunnntttsss rrreeeccceeeiiivvvaaabbbllleee TTTyyypppeee ooouuu NNN ttt ooo sssttt vvv aaa ... nnn ddd 333000 iiinnn ,,, ggg 1981 1981 1981 111999888111111 Sept. Oct. Nov. Sept. Oct. Nov. Sept. Oct. Nov. 1 Total 80,283 -619 418 1,395 18,852 17,393 20,029 19,471 16,975 18,634 2 Retail automotive (commercial vehicles) 11,275 99 -41 188 1,022 877 1,081 923 918 893 3 Wholesale automotive 12,776 -1,216 184 534 5,203 4,804 5,275 6,419 4,620 4,741 4 Retail paper on business, industrial and farm equipment 27,738 307 76 510 1,446 1,352 2,091 1,139 1,276 1,581 5 Loans on commercial accounts receivable and factored commercial accounts receivable 8,627 -352 -21 83 8,721 8,061 9,120 9,073 8,082 9,037 6 All other business credit 19,867 543 220 80 2,460 2,299 2,462 1,917 2,079 2,382 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • February 1982 1.54 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1981 Item 1979 1980 1981 June July Aug. Sept. Oct. Nov. Dec. Terms and yields in primary and secondary markets PRIMARY MARKETS Conventional mortgages on new homes Terms1 1 Purchase price (thousands of dollars) 74.4 83.4 90.4 94.1 95.2 98.1 89.1 89.2 84.5 88.7 2 Amount of loan (thousands of dollars) 53.3 59.2 65.2 66.8 67.7 70.3 64.8 63.5 62.7 64.4 3 Loan/price ratio (percent) 73.9 73.2 74.8 72.6 73.9 74.7 74.1 73.0 77.3 75.3 4 Maturity (years) 28.5 28.2 27.7 27.5 28.3 27.2 26.6 27.4 23.4 27.7 5 Fees and charges (percent of loan amount)2 1.66 2.09 2.67 2.50 2.73 2.98 2.75 2.86 2.52 2.87 6 Contract rate (percent per annum) 10.48 12.25 14.16 14.12 14.13 14.60 14.69 15.04 15.68 15.23 Yield (percent per annum) 1 FHLBB series5 10.77 12.65 14.74 14.67 14.72 15.27 15.29 15.65 16.38 15.87 8 HUD series4 11.15 13.95 16.52 16.40 16.70 17.50 18.30 18.05 16.95 17.00 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 10.87 13.42 16.29 16.31 16.76 17.96 18.55 17.43 15.98 1166..4433 10 GNMA securities6 10.22 12.55 15.29 15.02 15.76 16.67 17.06 16.54 15.10 15.51 FNMA auctions7 11 Government-underwritten loans 11.17 14.11 16.70 16.17 16.65 17.63 18.99 18.13 16.64 16.92 12 Conventional loans 11.77 14.43 16.64 16.30 16.44 17.59 19.14 18.61 17.20 16.95 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 46,050 55,104 58,675 57,657 57,979 58,722 59,682 60,489 60,949 61,412 14 FH A/V A-insured 33,673 37,364 39,342 38,988 39,108 39,368 39,792 40,043 40,056 39,997 15 Conventional 14,377 17,724 19,334 18,669 18,870 19,354 19,890 20,445 20,885 21,435 Mortgage transactions (during period) 16 Purchases 10,812 8,099 6,112 247 627 944 1,125 1,000 594 655 17 Sales 0 0 2 0 0 0 0 0 0 0 Mortgage commitments8 18 Contracted (during period) 10,179 8,083 9,331 1,110 1,662 1,394 811 533 560 1,272 19 Outstanding (end of period) 6,409 3,278 3,577 3,103 4,039 4,399 3,997 3,447 3,354 3,577 Auction of 4-month commitments to buy Government-underwritten loans 20 Offered 8,860.4 8,605.4 2,487.2 237.6 331.9 689.5 145.9 66.3 79.0 59.2 21 Accepted 3,920.9 4,002.0 1,478.0 127.1 290.4 336.6 64.1 37.3 34.4 27.0 Conventional loans 22 Offered 4,495.3 3,639.2 2,524.7 307.1 306.6 862.2 120.7 43.2 147.7 84.4 23 Accepted 2,343.6 1,748.5 1,392.3 224.0 238.2 304.3 67.9 27.5 63.1 48.0 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 24 Total 3,543 4,362 5,245 5,257 5,250 5,294 5,431 5,469 5,283 55,,225555 25 FHA/VA 1,995 2,116 2,236 2,241 2,233 2,238 2,264 2,267 2,232 2,227 26 Conventional 1,549 2,246 3,010 3,016 3,017 3,056 3,167 3,202 3,051 3,028 Mortgage transactions (during period) 27 Purchases 5,717 3,723 3,789 139 242 101 337 290 416 1,140 28 Sales 4,544 2,527 3,531 94 238 44 249 244 596 1,158 Mortgage commitments10 29 Contracted (during period) 5,542 3,859 6,974 293 866 386 365 1,834 2,011 203 30 Outstanding (end of period) 797 447 3,518 1,018 824 1,028 982 2,863 4,451 3,518 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 tandem 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 11997799 11998800 11998811 Q4 Q1 Q2 Q3' Q4 1 All holders l,326,916r 1,445,888' 1,541,449 1,445,888' 1,467,240' 1,496,845' 1,523,504 1,541,449 2 1- to 4-family 878,938' 960,322' 1.018.040 960,322' 972,530' 990,825' 1,007,595 1,018,040 3 Multifamily 128,850' 137,164' 143,483 137,164' 138,548' 140,098' 141,676 143,483 4 Commercial 236,451 256,549' 277,924 256,549' 261,807' 268,587' 274,216 277,924 5 82,677' 91,853' 102,002 91,853' 94,355' 97,335' 100,017 102,002 Major financial institutions 938,567 996,789' 1.043,396 996,789' 1,006,836' 1,023,340' 1,036,687 1,043,396 7 Commercial banks1 245,187 263,030r 286,626 263,030' 266,734' 273,225' 281.126 286,626 8 1- to 4-family 149,460 160,326' 172,549 160,326r 161,758' 164,873' 169,378 172,549 9 Multifamily 11,180 12,924' 14,905 12,924' 13.282' 13,800' 14,478 14,905 in Commercial 75,957 81,081' 90,717 81,081' 83.133' 86,091' 88,836 90,717 ii Farm 8,590 8,699' 8.455 8,699' 8,561' 8,461' 8,434 8,455 12 Mutual savings banks 98,908 99,866' 100,000 99,866' 99,719 99,993 100,200 100,000 1.3 1- to 4-family 64,706 65,332' 65,420 65,332' 65.236 65,415 65,551 65,420 14 Multifamily 17,180 17,347' 17,370 17,347' 17,321 17,369 17,405 17,370 15 Commercial 16,963 17,127' 17,150 17,127' 17.102 17,149 17,184 17,150 16 Farm 59 60 60 60 60 60 60 60 17 Savings and loan associations 475,688 502,812 517,637 502,812 507,152 514,803 518,379 517,637 18 1- to 4-family 394.345 419,446 432.693 419,446 423,269 430,324 433.313 432,693 19 Multifamily 37,579 38,113 38,253 38,113 38,189 38,044 38,308 38,253 20 Commercial 43,764 45,253 46.691 45,253 45.694 46,435 46,758 46,691 21 Life insurance companies 118,784 131,081' 139,133 131,081' 133,231 135,319 136,982 139,133 77 1- to 4-family 16,193 17,943' 17,812 17.943' 17.847 17,646 17,512 17,812 73 Multifamily 19,274 19,514' 19,929 19,514' 19,579 19,603 19.592 19,929 74 Commercial 71,137 80,666' 88,232 80.666' 82,839 85,038 86,742 88,232 25 Farm 12,180 12,958' 13,160 12,958' 12,966 13,032 13,136 13,160 26 Federal and related agencies 97,084 114,300 126,189 114,300 116,243 120,057 122,668 126,189 27 Government National Mortgage Association 3,852 4,642 4,650 4,642 4,826 4,972 4,382 4,650 2fi 1- to 4-family 763 704 705 704 696 698 696 705 29 Multifamily 3,089 3,938 3,945 3,938 4,130 4,274 3,686 3,945 30 Farmers Home Administration 1,274 3,492 2,108 3,492 2,837 3,595 2,458 2,108 31 1- to 4-family 417 916 809 916 1,321 1,565 893 809 37 Multifamily 71 610 183 610 528 489 266 183 33 Commercial 174 411 458 411 479 576 541 458 34 Farm 612 1,555 658 1,555 509 965 758 658 35 Federal Housing and Veterans Administration 5,555 5,640 6,073 5,640 5,799 5,895 6,005 6,073 36 1- to 4-family 1,955 2,051 2,293 2,051 2,135 2,172 2,240 2,293 37 Multifamily 3,600 3,589 3,780 3,589 3,664 3,723 3,765 3,780 38 Federal National Mortgage Association 51,091 57,327 61,412 57.327 57,362 57,657 59,682 61,412 39 1- to 4-family 45,488 51,775 55,986 51,775 51,842 52,181 54,227 55,986 40 Multifamily 5,603 5,552 5,426 5,552 5,520 5,476 5,455 5,426 41 Federal Land Banks 31,277 38,131 46,446 38.131 40,258 42,681 44,708 46,446 47 1- to 4-family 1,552 2,099 2,788 2,099 2,228 2,401 2,605 2,788 43 Farm 29,725 36,032 43,658 36,032 38,030 40,280 42,103 43,658 44 Federal Home Loan Mortgage Corporation 4,035 5,068 5,500 5,068 5,161 5,257 5,433 5,500 45 1- to 4-family 3,059 3,873 4,200 3,873 3,953 4,025 4,166 4,200 46 Multifamily 976 1,195 1,300 1,195 1.208 1,232 1,267 1,300 47 Mortgage pools or trusts2 119,278 142,258 160,450 142,258 147.246 151,374 157,246 160,450 48 Government National Mortgage Association 76,401 93,874 105,790 93,874 97,184 100,558 103,750 105,790 49 1- to 4-family 74,546 91,602 102,750 91,602 94,810 98,057 101,068 102,750 50 Multifamily 1,855 2,272 3,040 2,272 2,374 2,501 2,682 3,040 51 Federal Home Loan Mortgage Corporation 15,180 16.854 19,100 16,854 17,067 17,565 17,936 19,100 57 1- to 4-family 12,149 13,471 15,500 13,471 13,641 14,115 14,401 15,500 53 Multifamily 3,031 3,383 3,600 3,383 3,426 3,450 3,535 3,600 54 Farmers Home Administration 27,697 31,530 35,560 31,530 32.995 33,251 35,560 35,560 55 1- to 4-family 14,884 16,683 18,014 16,683 16,640 16,750 18,014 18,014 56 Multifamily 2,163 2.612 3,464 2,612 2,853 3,072 3,464 3,464 57 Commercial 4,328 5,271 5,826 5,271 5,382 5,531 5,826 5,826 58 Farm 6,322 6.964 8,256 6,964 8,120 7,898 8,256 8,256 59 Individual and others3 171,987' 192,541' 211,414 192,541' 196,915' 202,074' 206,903 211,414 60 1- to 4-family 99,421' 114,101' 126,521 114.101' 117,154' 120,603' 123,531 126,521 61 Multifamily 23,249' 26,115' 28,288 26,115' 26,474' 27,065' 27,773 28,288 67 Commercial 24,128 26,740' 28,850 26,740' 27,178' 27,767' 28,329 28,850 63 Farm 25,189r 25,585' 27,755 25,585' 26,109' 26,639' 27,270 27,755 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 • February 1982 1.56 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net ChangeA Millions of dollars 1981 HHoollddeerr,, aanndd ttyyppee ooff ccrreeddiitt 11997788 11997799 11998800 June July Aug. Sept. Oct. Nov. Dec. Amounts outstanding (end of period) 1 Total 273,645 312,024 313,435 318,459 320,886 324,653 328,296 328,826 328,944 333,063 By major holder 2 Commercial banks 136,016 154,177 145,765 143,310 144,020 144,769 145,287 145,090 144,560 146,792 3 Finance companies 54,298 68,318 76,756 82,723 83,924 86,152 88,698 89,583 89,956 89,818 4 Credit unions 44,334 46,517 44,041 45,686 46,096 46,605 46,791 46,416 46,092 45,954 5 Retailers2 25,987 28,119 29,410 27,412 27,469 27,494 27,712 28,046 28,563 30,717 6 Savings and loans 7,097 8,424 9,911 11,115 10.959 11,125 11,236 11,348 11,529 11,598 V Gasoline companies 3,220 3,729 4,717 5,364 5,597 5,716 5,771 5,562 5,452 5,433 8 Mutual savings banks 2,693 2,740 2,835 2,849 2,821 2,792 2,801 2,781 2,792 2,751 By major type of credit 9 Automobile 101,647 116,362 116,327 119,685 121,002 123,219 125,646 126,235 125,929 125,754 10 Commercial banks 60,510 67,367 61,025 59,192 59,434 59,485 59,394 59,133 58,669 58,504 11 Indirect paper 33,850 38,338 34,857 33,996 34,270 34,501 34,656 34,638 34,421 34,569 12 Direct loans 26,660 29,029 26,168 25,196 25,164 24,984 24,738 24,495 24,248 23,935 13 Credit unions 21,200 22,244 21,060 21,847 22,044 22,286 22,375 22,196 22,041 21,975 14 Finance companies 19,937 26,751 34,242 38,646 39,525 41,448 43,877 44,906 45,219 45,275 15 Revolving 48,309 56,937 59,862 58,470 58,976 59,745 60,415 60,651 61,166 65,354 16 Commercial banks 24,341 29,862 30,001 29,722 29,923 30,530 30,921 31,012 31,125 33,246 17 Retailers 20,748 23,346 25,144 23,384 23,456 23,499 23,723 24,077 24,589 26,675 18 Gasoline companies 3,220 3,729 4,717 5,364 5,597 5,716 5,771 5,562 5,452 5,433 19 Mobile home 15,235 16.838 17,327 17,724 17.784 17,988 18,157 18,329 18,385 18,487 20 Commercial banks 9,545 10,647 10,376 10,179 10,192 10,242 10,274 10,317 10,272 10,301 21 Finance companies 3,152 3,390 3,745 3,990 4,076 4,178 4,282 4,384 4,439 4,494 22 Savings and loans 2,067 2,307 2,737 3,069 3,026 3,072 3,103 3,134 3,184 3,203 23 Credit unions 471 494 469 486 490 496 498 494 490 489 24 Other 108,454 121,887 119,919 122,580 123,124 123,701 124,078 123,611 123,464 123,468 25 Commercial banks 41,620 46,301 44,363 44,217 44,471 44,512 44,698 44,628 44,494 44,741 26 Finance companies 31,209 38,177 38,769 40,087 40,323 40,526 40,539 40,293 40,298 40,049 27 Credit unions 22,663 23,779 22,512 23,353 23,563 23,823 23,918 23,726 23,561 23,490 28 Retailers 5,239 4,773 4,266 4,028 4,013 3,995 3,989 3,969 3,974 4,042 29 Savings and loans 5,030 6,117 7,174 8,046 7,933 8,053 8,133 8,214 8,345 8,395 30 Mutual savings banks 2,693 2,740 2,835 2,849 2,821 2,792 2,801 2,781 2,792 2,751 Net change (during period)3 31 Total 43,079 38,381 1,410 1,930 1,954 2,859 2,819 1,014 342 -173 By major holder 32 Commercial banks 23,641 18,161 -8,412 614 432 185 123 -175 121 881 33 Finance companies 9,430 14,020 8,438 570 948 2,383 2,682 1,204 462 -414 34 Credit unions 6,729 2,185 -2,475 219 532 245 -134 -209 -224 -369 35 Retailers2 2,497 2,132 1,291 416 265 -13 117 101 -214 -306 36 Savings and loans 7 1,327 1,485 45 -175 42 71 32 121 57 37 Gasoline companies 257 509 988 78 4 33 -20 72 61 9 38 Mutual savings banks 518 47 95 -12 -52 -16 -20 -11 15 -31 By major type of credit 39 Automobile 18,736 14,715 -35 57 1,208 2,115 2,282 962 274 -91 40 Commercial banks 10,933 6,857 -6,342 -214 199 -91 -201 -288 -70 77 41 Indirect paper 6,471 4,488 -3,481 -44 274 159 63 -44 60 332 42 Direct loans 4,462 2,369 -2,861 -170 -75 -250 -264 -244 -130 -255 43 Credit unions 3,101 1,044 -1,184 106 263 106 -82 -98 -77 -200 44 Finance companies 4,702 6,814 7,491 165 746 2,100 2,565 1,348 421 32 45 Revolving 9,035 8,628 2,925 1,018 477 491 293 390 53 128 46 Commercial banks 5,967 5,521 139 580 156 440 171 138 178 413 47 Retailers 2,811 2,598 1,798 360 317 18 142 180 -186 -294 48 Gasoline companies 257 509 988 78 4 33 -20 72 61 9 49 Mobile home 286 1,603 488 89 67 176 175 135 58 136 50 Commercial banks 419 1,102 -271 -12 20 44 48 41 -26 74 51 Finance companies 74 238 355 85 81 93 102 74 42 49 52 Savings and loans -276 240 430 14 -44 37 26 23 45 15 53 Credit unions 69 23 -25 2 10 2 -1 -3 -3 -2 54 Other 15,022 13,435 -1,968 766 202 77 69 -473 -43 -346 55 Commercial banks 6,322 4,681 -1,938 260 57 -208 105 -66 39 317 56 Finance companies 4,654 6,968 592 320 121 190 15 -218 -1 -495 57 Credit unions 3,559 1,118 -1,266 111 259 137 -51 -108 -144 -167 58 Retailers -314 -466 -507 56 -52 -31 -25 -79 -28 -12 59 Savings and loans 283 1,087 1,056 31 -131 5 45 9 76 42 60 Mutual savings banks 518 47 95 -12 -52 -16 -20 -11 15 -31 1. The Board's series cover most short- and intermediate-term credit extended 3. Net change equals extensions minus liquidations (repayments, charge-offs and to individuals through regular business channels, usually to finance the purchase other credit); figures for all months are seasonally adjusted. of consumer goods and services or to refinance debts incurred for such purposes, and scheduled to be repaid (or with the option of repayment) in two or more ^Total consumer noninstallment credit outstanding—credit scheduled to be reinstallments. paid in a lump sum, including single-payment loans, charge accounts, and service 2. Includes auto dealers and excludes 30-day charge credit held by travel and credit—amounted to $71.3 billion at the end of 1979, $72.2 billion at the end of entertainment companies. 1980, and $78.4 billion at the end of 1981. 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 Hnlrler anil tvne nf rrpHit 11997788 11997799 June July Aug. Sept. Oct. Nov. Dec. Extensions 1 Total 297,668 324,777 305,887 29,005 28,750 28,899 29,428 26,952 27,499 26,871 By major holder 2 Commercial banks 142,433 154,733 133,605 12,483 12,433 12,034 12,036 11,244 12,043 13,008 3 Finance companies 50,505 61,518 60,801 5,251 5,439 6,385 7,158 5.327 5,287 4,089 4 Credit unions 38,111 34,926 29,594 3,137 3,299 2,913 2,558 2,621 2,571 2,517 5 Retailers1 44,571 47,676 50,959 5,018 4,826 4,616 4.727 4,729 4,405 4,221 6 Savings and loans 3,724 5,901 6,621 649 383 537 573 553 668 588 7 Gasoline companies 16,017 18,005 22,402 2,296 2,252 2,284 2,246 2,333 2,353 2,323 8 Mutual savings banks 2,307 2,018 1,905 171 118 130 130 145 172 125 By major type of credit 9 Automobile 87,981 93,901 83,002 7,442 8,178 8,573 9,176 7,139 7,748 7,156 10 Commercial banks 52,969 53,554 40,657 3,652 3,874 3,457 3,394 2,912 3,654 3,782 11 Indirect paper 29,342 29,623 22,269 2,126 2,349 2,084 2,075 1,627 2,189 2,344 12 Direct loans 23,627 23,931 18,388 1,526 1,525 1,373 1,319 1,285 1,465 1,438 13 Credit unions 18,539 17,397 15,294 1,553 1,663 1,537 1,337 1,308 1,342 1,345 14 Finance companies 16,473 22,950 27,051 2,237 2,641 3,579 4,445 2,919 2,752 2,029 15 Revolving 105,125 120,174 129,580 12,668 12,190 11,964 12,335 12,208 11,861 12,099 16 Commercial banks 51,333 61,048 61,847 5,905 5,557 5,528 5,831 5,555 5,555 6,028 17 Retailers 37,775 41,121 45,331 4,467 4,381 4,152 4,258 4,320 3,953 3,748 18 Gasoline companies 16,017 18,005 22,402 2,296 2,252 2,284 2,246 2,333 2,353 2,323 19 Mobile home 5,412 6,471 5,098 488 451 536 543 487 498 500 20 Commercial banks 3,697 4,542 2,942 259 282 297 302 266 254 300 21 Finance companies 886 797 898 122 116 120 134 123 108 106 22 Savings and loans 609 948 1,146 93 30 105 95 89 127 86 23 Credit unions 220 184 113 14 23 14 12 9 9 8 24 Other 99,150 104,231 88,207 8,407 7,931 7,826 7,374 7,118 7,392 7,116 25 Commercial banks 34,434 35,589 28,159 2,667 2,720 2,752 2,509 2,511 2,580 2,898 26 Finance companies 33,146 37,771 32,852 2,892 2,682 2,686 2,579 2,285 2,427 1,954 27 Credit unions 19,352 17,345 14,187 1,570 1,613 1,362 1.209 1,304 1,220 1,164 28 Retailers 6,796 6,555 5,628 551 445 464 469 409 452 473 29 Savings and loans 3,115 4,953 5,476 556 353 432 478 464 541 502 30 Mutual savings banks 2,307 2,018 1,905 171 118 130 130 145 172 125 Liquidations 31 Total 254,589 286,396 304,477 27,075 26,796 26,040 26,609 25,938 27,157 27,044 By major holder 32 Commercial banks 118,792 136,572 142,017 11,869 12,001 11,849 11,913 11,419 11,922 12,127 33 Finance companies 41,075 47,498 52,363 4,681 4,491 4,002 4,476 4,123 4,825 4,503 34 Credit unions 31,382 32,741 32,069 2,918 2767 2,668 2,692 2,830 2,795 2,886 35 Retailers1 42,074 45,544 49,668 4,602 4561 4,629 4,610 4,628 4,619 4,527 36 Savings and loans 3,717 4,574 5,136 604 558 495 502 521 547 531 37 Gasoline companies 15,760 17,496 21,414 2,218 2,248 2,251 2,266 2,261 2,292 2,314 38 Mutual savings banks 1,789 1,971 1,810 183 170 146 150 156 157 156 By major type of credit 39 Automobile 69,245 79,186 83,037 7,385 6,970 6,458 6,894 6,177 7,474 7,247 40 Commercial banks 42,036 46,697 46,999 3,866 3,675 3,548 3,595 3,200 3,724 3,705 41 Indirect paper 22,871 25,135 25,750 2,170 2,075 1,925 2,012 1,671 2,129 2,012 42 Direct loans 19,165 21,562 21,249 1,696 1,600 1,623 1,583 1,529 1,595 1,693 43 Credit unions 15,438 16,353 16,478 1,447 1,400 1,431 1,419 1,406 1,419 1,545 44 Finance companies 11,771 16,136 19,560 2,072 1,895 1,479 1,880 1,571 2,331 1,997 45 Revolving 96,090 111,546 126,655 11,650 11,713 11,473 12,042 11,818 11,808 11,971 46 Commercial banks 45,366 55,527 61,708 5,325 5,401 5,088 5,660 5,417 5,377 5,615 47 Retailers 34,964 38,523 43,533 4,107 4,064 4,134 4,116 4,140 4,139 4,042 48 Gasoline companies 15,760 17,496 21,414 2,218 2,248 2,251 2.266 2,261 2,292 2,314 49 Mobile home 5,126 4,868 4,610 399 384 360 368 352 440 364 50 Commercial banks 3,278 3,440 3,213 271 262 253 254 225 280 226 51 Finance companies 812 559 543 37 35 27 32 49 66 57 52 Savings and loans 885 708 716 79 74 68 69 66 82 71 53 Credit unions 151 161 138 12 13 12 13 12 12 10 54 Other 84,128 90,796 90,175 7,641 7,729 7,749 7,305 7,591 7,435 7,462 55 Commercial banks 28,112 30,908 30,097 2,407 2,663 2,960 2,404 2,577 2,541 2,581 56 Finance companies 28,492 30,803 32,260 2,572 2,561 2,496 2,564 2,503 2,428 2,449 57 Credit unions 15,793 16,227 15,453 1,459 1,354 1,225 1,260 1,412 1,364 1,331 58 Retailers 7,110 7,021 6,135 495 497 495 494 488 480 485 59 Savings and loans 2,832 3,866 4,420 525 484 427 433 455 465 460 60 Mutual savings banks 1,789 1,971 1,810 183 170 146 150 156 157 156 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 Financial Statistics • February 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 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 y 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 1U Corporate equities 9.9 10.5 2.7 -.1 -7.8 12.9 1.6 -9.6 -6.1 6.9 18.8 .9 n 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 1155 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 25 State and local governments 13.7 15.2 17.3 20.9 18.4 25.3 23.3 17.9 18.9 19.7 30.9 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 21 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 35 Open market paper .3 1.9 2.4 6.6 11.2 10.1 9.6 6.1 16.3 15.7 4.5 20.6 36 U.S. government loans 2.8 3.3 3.0 3.9 3.0 4.7 4.2 3.1 2.8 5.4 4.0 5.2 Financial sectors 37 Total funds raised 9.7 23.4 51.4 76.8 84.3 66.7 75.2 87.8 80.8 59.8 73.5 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 4b 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 51 Mortgage pools 7.1 12.2 16.1 13.6 24.0 18.6 14.1 22.5 25.5 19.6 17.6 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 53 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 56 Other insurance companies 1.0 .9 1.4 .8 .9 .9 .8 .9 .9 .9 .9 .9 57 Finance companies .5 4.3 16.9 18.1 16.8 5.8 17.5 22.7 10.9 5.2 6.3 18.7 58 REITs -1.3 -2.2 -2.3 -1.1 -.4 -1.7 -1.1 -.6 -.2 -1.4 -2.0 -.8 59 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 65 State and local obligations 16.1 15.7 21.9 26.1 21.8 26.9 26.8 20.9 22.7 21.6 32.1 27.8 66 Corporate and foreign bonds 36.7 41.2 36.1 31.8 32.8 38.4 31.2 32.6 33.0 47.4 29.5 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 n 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 81.3 103.0 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 22 Insurance and pension funds 40.6 49.7 67.8 75.0 66.4 79.8 73.9 72.3 60.5 89.2 70.3 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 24 Sources of funds 123.4 191.4 260.9 302.4 292.5 270.3 294.8 316.9 268.0 246.1 294.4 322.5 25 Private domestic deposits 94.2 124.4 138.9 140.8 143.2 171.1 132.9 135.1 151.2 158.7 183.6 196.9 26 Credit market borrowing -1.1 8.4 26.9 38.3 33.6 17.5 35.8 40.6 26.6 8.1 27.0 41.9 27 Other sources 30.3 58.5 95.1 123.2 115.7 81.6 126.1 141.2 90.3 79.4 83.8 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 29 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 42 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 Ml 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, bank borrowings from foreign branches, NOTE. Full statements for sectors and transaction types quarterly, and annually and liabilities of foreign banking agencies to foreign affiliates. for flows and for amounts outstanding, may be obtained from Flow of Funds 29. Demand deposits at commercial banks. Section, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • February 1982 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures 1967 = 100; monthly and quarterly data are seasonally adjusted. Exceptions noted. 1981 1982 MMeeaassuurree 11997799 11998800 11998811 Apr. May June July Aug. Sept. Oct. Nov.' Dec.' Jan. 1 Industrial production1 152.5 147.0 151.0 151.9 152.7 152.9 153.9 153.6 151.6 149.1' 146.4 143.4 139.1 Market groupings 2 Products, total 150.0 146.7 150.6 151.3 152.3 152.7 153.0 152.6 151.0 149.4r 147.6 146.0 142.3 3 Final, total 147.2 145.3 149.5 149.9 151.3 151.4 152.1 151.5 150.0 148.9' 147.1 145.8 142.3 4 Consumer goods 150.8 145.4 147.9 148.9 150.7 150.3 150.7 149.6 147.8 146.5' 144.2 142.3 138.1 5 Equipment 142.2 145.2 151.7 151.4 152.1 153.0 154.1 154.0 152.9 152.1r 151.2 150.5 148.0 6 Intermediate 160.5 151.9 154.6 156.3 156.1 154.9 156.2 156.8 154.6 151.4 149.2 146.9 142.5 7 Materials 156.4 147.6 151.6 152.9 153.4 154.0 155.3 155.2 152.5 148.5r 144.6 139.3 134.1 Industry groupings 8 Manufacturing 153.6 146.7 150.4 152.0 152.8 152.4 153.2 153.2 151.1 148.2 145.2 141.9 137.1 Capacity utilization (percent)12 9 Manufacturing 85.7 79.1 74.8 79.8 80.0 79.6 79.8 79.6 78.3 76.6 74.9 73.0 70.4 10 Industrial materials industries .... 87.4 80.0 80.0 81.1 81.2 81.3 81.9 81.7 80.0 77.7r 75.5 72.6 69.8 11 Construction contracts (1972 = 100)3 185.6 161.8 n.a. 172.0 160.0 170.0 153.0 156.0 159.0 157.0 142.0 172.0 n.a. 12 Nonagricultural employment, total4 . 136.5 137.6 139.1 139.0 139.1 139.2 139.6 139.7 139.9 139.6 139.1 138.4' 138.1 13 Goods-producing, total 113.5 110.3 110.2 110.3 110.3 110.8 111.3 111.3 111.2 110.1 109.1 107.8r 106.2 14 Manufacturing, total 108.2 104.4 104.2 104.6 105.0 105.0 105.6 105.4 105.4 104.1 102.9 101.6r 100.5 15 Manufacturing, productionworker 105.3 99.4 98.5 99.2 99.6 99.6 100.1 99.9 99.8 98.1 96.4 94.6' 93.4 16 Service-producing 149.1 152.6 155.0 154.7 155.0 154.8 155.2 155.2 155.6 155.7 155.6 155.3r 155.5 17 Personal income, total 308.5 342.9 381.5 373.6 375.8 378.5 384.0 387.8 390.9 392.6r 394.9 395.6 n.a. 18 Wages and salary disbursements .. 289.5 314.7 347.3 341.8 343.6 345.2 347.8 351.4 353.2 355.4r 357.4 357.2 n.a. 19 Manufacturing 248.6 261.5 288.9 286.1 289.2 289.9 292.1 294.3 294.9 293.7r 292.0 289.9 n.a. 20 Disposable personal income5 299.6 332.5 n.a. 360.6r 362.3 364.4 369.7 372.9 375.5r 379.4r 381.2 381.8 n.a. 21 Retail sales6 281.6 303.8 332.5 328.1 326.7 333.9 333.8 338.5 338.9 331.1 333.3 332.7 329.1 Prices7 22 Consumer 217.4 246.8 272.4 266.8 269.0 271.3 274.4 276.5 279.3 279.9 280.7 281.5 n.a. 23 Producer finished goods 216.1 246.9 269.8 268.5 269.6 270.5 271.8 271.2 271.1 274.0 274.5 275.3 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 McGraw-Hill Information Systems 6, and indexes for series mentioned in notes 3 and 7 may also be found in the Company, F. W. Dodge Division. Survey of Current Business. 4. Based on data in Employment and Earnings (U.S. Department of Labor). Figures for industrial production for the last two months are preliminary and Series covers employees only, excluding personnel in the Armed Forces. estimated, respectively. 5. Based on data in Survey of Current Business (U.S. Department of Commerce). 2.11 OUTPUT, CAPACITY, AND CAPACITY UTILIZATION Seasonally adjusted 1981 1981 1981 SSeerriieess Q1 Q2 Q3 Q4r 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 74.8 189.4 190.9 192.4 193.9 79.9 79.8 79.3 74.8 2 Primary processing 157.5 156.5 155.8 72.6 193.8 195.0 196.3 197.5 81.3 80.3 79.4 72.6 3 Advanced processing 148.1 150.2 150.7 145.8 187.1 188.7 190.4 192.0 79.1 79.6 79.2 76.C 4 Materials 154.2 153.4 154.3 144.1 187.6 189.0r 190.3r 191.5 82.2 81.2 81. lr 75.3 5 Durable goods 150.9 152.3 152.8 140.4 191.8 192.9 194.2' 195.3r 78.7 78.9r 78.7 71.9 6 Metal materials 117.5 112.8 114.2 99.5 141.5 141.7 141.9 142.1 83.0 79.6 80.5 70.0r 7 Nondurable goods 179.2 178.4 175.8 164.4 207.3 209.2 211.2 213.1 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 114.8 114.5 115.5 106.9 140.1 140.6 141.0 141.6 81.9 81.4 81.8 75.5r 10 Paper 151.4 151.0 152.2 147.5 159.7 160.7 161.9 162.8 94.8 93.9 94.1 90.6r 11 Chemical 232.7 231.6 224.9 205.4 274.1 277.5 281.0 284.4 84.9 83.5 80.0 12.V 12 Energy materials 130.9 125.1 131.6 128.0 153.5 154.3r 155.0 155.8r 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 SSeerriieess High Low High Low Dec. May June July Aug. Sept. Oct.' Nov.' Dec. Capacity utilization rate (percent) 13 Manufacturing 88.0 69.0 87.2 74.9 n.a. 80.0 79.6 79.8 79.6 78.4 76.6 74.9 n.a. 14 Primary processing 93.8 68.2 90.1 71.0 n.a. 80.6 79.5 80.1 79.9 78.2' 75.7 72.8 n.a. 15 Advanced processing 85.5 69.4 86.2 77.2 n.a. 79.8 79.7 79.8 79.4 78.3' 77.0 76.0 n.a. 16 Materials 92.6 69.4 88.8 73.8 81.4 81.2 81.3 81.9 81.7 80.0 77.7 75.5 72.6 17 Durable goods 91.5 63.6 88.4 68.2 77.1 79.2 78.9 79.3 79.5 77.3' 74.7 72.1 69.0 18 Metal materials 98.3 68.6 96.0 59.6 80.3 80.3 78.7 79.5 83.0 79.1 73.9 70.8 65.3 19 Nondurable goods 94.5 67.2 91.6 77.5 87.2 85.6 84.3 83.9 83.0 82.9 80.3 77.5 73.8 20 Textile, paper, and chemical.... 95.1 65.3 92.2 75.3 87.1 85.4 83.5 83.2 82.3 82.1 79.1 76.1 71.6 21 Textile 92.6 57.9 90.6 80.9 80.2 81.7 80.5 82.0 82.3 81.3 78.8 75.7 71.9 22 Paper 99.4 72.4 97.7 89.3 95.0 93.9 93.0 92.9 93.6 95.7 92.1 91.9 87.8 23 Chemical 95.5 64.2 91.3 70.7 86.8 84.3 82.0 81.2 79.7 79.2 76.2 72.7 67.9 24 Energy materials 94.6 84.8 88.3 82.7 84.6 79.8 83.7 86.2 85.6 83.0 82.5 82.5 81.5 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 1982 CCaatteeggoorryy 11997799 11998800 11998811 July Aug. Sept. Oct. Nov.' Dec.' Jan. HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 166,952' 169,848R 172,272 172,385' 172,559' 172,758' 172,967' 173,154 173,330 173,494 2 Labor force (including Armed Forces)1 ... 107,050' 109,042' 111,812 110,827' 110,978' 110,659 111,170' 111,430 111,348 111,038 3 Civilian labor force 104,962' 106,940' 108,670 108,688' 108,818' 108,494' 109,012' 109,272 109,184 108,879 4 Nonagricultural industries2 95,477' 95,938' 97,030 97,522' 97,436' 96,900' 96,965 96,800 94,404 94,170 5 Agriculture 3,347' 3,364' 3,368 3,342' 3,404' 3,358' 3,378' 3,372 3,209 3,411 6 Number 6,137' 7,637' 8,273 7,824' 7,978' 8,236' 8,669 9,100 9,571 9,298 7 Rate (percent of civilian labor force) . 5.8 7.1 7.6 7.2' 7.3' 7.6' 8.0 8.3 8.8 8.5 8 Not in labor force 59,902' 60,806' 60,460 61,558' 61,581' 62,099' 61,797' 61,724 61,982 62,456 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 89,823 90,564 91,548 91,880 91,901 92,033 91,832 91,522 91,096 90,859 10 Manufacturing 21,040 20,300 20,264 20,535 20,505 20,496 20,241 20,017 19,750 19,537 11 Mining 958 1,020 1,104 1,132 1,151 1,162 1,162 1,172 1,176 1,172 12 Contract construction 4,463 4,399 4,307 4,272 4,275 4,272 4,259 4,229 4,191 4,052 13 Transportation and public utilities 5,136 5,143 5,152 5,167 5,170 5,186 5,168 5,147 5,109 5,108 14 Trade 20,192 20,386 20,736 20,796 20,862 20,872 20,916 20,838 20,725 20,893 15 Finance 4,975 5,168 5,330 5,344 5,354 5,366 5,360 5,355 5,367 5,359 16 Service 17,112 17,901 18,598 18,642 18,667 18,774 18,788 18,838 18,848 18,842 17 Government 15,947 16,249 16,056 15,992 15,917 15,905 15,938 15,926 15,930 15,896 1. Persons 16 years of age and over. Monthly figures, which are based on sample 3. Data include all full- and part-time employees who worked during, or data, relate to the calendar week that contains the 12th day; annual data are received pay for, the pay period that includes the 12th day of the month, and averages of monthly figures. By definition, seasonality does not exist in population exclude proprietors, self-employed persons, domestic servants, unpaid family workfigures. Based on data from Employment and Earnings (U.S. Department of La- ers, and members of the Armed Forces. Data are adjusted to the March 1979 bor). benchmark and only seasonally adjusted data are available at this time. Based on 2. Includes self-employed, unpaid family, and domestic service workers. data from Employment and Earnings (U.S. Department of Labor). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • February 1982 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. Grouping 1 p p 9 r o o 6 r - - 7 a 1 v 9 e 8 r 1 - 1981 1982 tion age Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.r Nov. Dec.'' Jan Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 151.0 151.4 151.8 152.1 151.9 152.7 152.9 153.9 153.6 151.6 149.1 146.4 143.4 2 Products 60.71 150.6 149.9 150.2 150.7 151.3 152.3 152.2 153.0 152.6 151.0 149.4 147.6 146.0 3 Final products 47.82 149.5 147.8 148.2 149.0 149.9 151.3 151.4 152.1 151.5 150.0 148.9 147.1 145.8 4 Consumer goods 27.68 147.9 146.9 147.8 148.3 148.9 150.7 150.3 150.7 149.6 147.8 146.5 144.2 142.3 5 Equipment 20.14 151.7 149.1 148.7 150.0 151.4 152.1 153.0 154.1 154.0 152.9 152.1 151.2 150.5 6 Intermediate products 12.89 154.6 157.5 157.7 157.1 156.3 156.1 154.9 156.2 156.8 154.6 151.4 149.2 146.9 7 Materials 39.29 151.6 153.8 154.3 154.4 152.9 153.4 154.0 155.3 155.2 152.5 148.5 144.6 139.3 Consumer goods 8 Durable consumer goods 7.89 140.5 140.1 141.2 143.6 144.3 147.3 147.9 146.5 142.5 140.4 136.3 129.7 123.7 9 Automotive products 2.83 138.0 130.4 133.9 139.2 142.9 151.8 153.1 147.6 137.6 139.1 132.8 121.7 120.1 10 Autos and utility vehicles .... 2.03 111.2 102.7 108.5 116.1 120.2 129.1 131.4 123.0 107.8 110.0 101.7 88.9 87.5 11 Autos 1.90 103.4 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 .. 80 205.9 200.8 198.4 197.5 200.8 209.5 208.0 210.0 213.1 212.9 211.8 205.0 203.1 13 Home goods 5.06 142.0 145.6 145.2 146.1 145.0 144.8 145.0 145.8 145.3 141.1 138.2 134.3 125.6 14 Appliances, A/C, and TV .... 1.40 119.7 132.2 125.8 129.1 121.2 121.4 120.0 123.6 126.8 119.0 116.7 107.7 86.1 15 Appliances and TV 1.33 121.2 134.1 128.2 131.2 122.6 122.3 121.4 124.8 128.9 121.4 118.7 108.7 87.1 16 Carpeting and furniture 1.07 158.0 156.2 160.4 160.2 165.2 163.1 166.3 163.2 160.1 158.6 152.6 148.0 142.5 17 Miscellaneous home goods ... 2.59 147.5 148.4 149.5 149.4 149.7 149.9 149.8 150.7 149.2 145.8 143.9 143.0 140.1 18 Nondurable consumer goods 19.79 150.9 149.6 150.5 150.1 150.7 152.1 151.2 152.3 152.5 150.8 150.5 150.0 149.8 19 4.29 121.2 120.9 118.9 120.6 122.1 120.9 122.8 121.9 119.3 117.8 116.4 20 Consumer staples 15.50 159.5 157.5 158.6 158.8 159.0 160.3 159.6 160.5 161.0 159.5 159.6 159.3 159.5 21 Consumer foods and tobacco . 8.33 150.4 149.3 150.5 150.5 150.2 151.3 149.6 150.5 150.6 149.5 150.7 150.7 151.3 22 Nonfood staples 7.17 170.1 167.0 168.1 168.4 169.3 170.8 171.3 172.2 173.0 171.1 169.9 169.3 169.0 23 Consumer chemical products 2.63 223.2 213.0 219.3 220.0 224.1 225.1 224.4 226.8 227,7 227.5 223.0 220.9 220.5 24 Consumer paper products .. 1.92 127.8 127.9 129.0 128.7 127.4 127.7 129.2 127.6 128.9 127.7 126.9 125.7 125.3 25 Consumer energy products . 2.62 147.8 149.4 145.4 143.7 144.9 147.9 148.9 150.0 150.4 146.4 148.2 149.4 149.3 2266 11..4455 116677..55 116611..33 116611..11 116622..99 116688..99 117700..44 117722..66 116699..77 116622..88 116666..22 116677..44 Equipment 21 Business 12.63 180.9 177.7 177.5 179.3 181.0 182.0 183.6 184.8 184.8 182.7 180.5 178.6 177.0 28 Industrial 6.77 166.4 161.5 163.4 164.6 165.9 167.0 169.0 169.4 170.2 168.9 166.9 165.2 163.5 29 Building and mining 1.44 285.9 264.0 270.4 276.6 281.7 286.4 289.7 290.3 293.0 293.6 295.6 292.8 292.6 30 Manufacturing 3.85 127.9 127.7 128.4 128.6 128.5 128.4 130.6 130.8 130.8 129.3 125.7 123.9 121.9 31 Power 1.47 149.8 149.1 149.9 149.3 149.9 150.8 151.2 151.6 152.7 150.4 148.4 148.0 145.9 32 Commercial transit, farm 5.86 197.7 196.6 193.7 196.2 198.6 199.4 200.4 202.5 200.9 198.5 196.2 194.1 192.5 33 Commercial 3.26 258.1 249.3 250.4 252.7 254.5 258.0 259.9 263.7 264.3 264.2 259.8 259.0 256.9 34 Transit 1.93 125.3 133.1 124.8 127.8 131.5 130.0 129.7 128.4 124.6 121.0 120.6 116.6 116.3 35 Farm 67 112.0 122.9 116.4 118.5 119.7 113.9 114.9 118.0 111.8 102.1 104.6 101.7 99.1 36 Defense and space 7.51 102.6 100.9 100.5 100.7 101.5 102.0 101.7 102.6 102.8 103.0 104.5 105.1 106.0 Intermediate products 37 Construction supplies 6.42 142.1 148.4 148.9 149.0 147.9 146.5 143.4 144.3 144.0 139.7 135.2 130.6 128.2 38 Business supplies 6.47 167.0 166.6 166.4 165.1 164.7 165.6 166.2 168.0 169.5 169.4 167.5 167.5 165.6 39 Commercial energy products ... 1.14 176.3 175.5 174.0 174.7 175.2 179.0 177.7 180.0 176.6 174.2 174.3 176.0 176.8 Materials 40 Durable goods materials 20.35 149.2 150.0 150.6 152.2 151.8 152.8 152.4 153.6 154.3 150.4 145.6 140.8 134.9 41 Durable consumer parts 4.58 114.5 114.7 114.3 118.4 119.7 121.1 123.1 123.2 121.8 114.5 107.6 102.5 93.6 42 Equipment parts 5.44 191.2 189.7 188.9 191.1 192.8 194.0 193.2 193.8 194.7 192.7 190.3 188.0 183.9 43 Durable materials n.e.c 10.34 142.4 144.7 146.6 146.7 144.3 145.1 143.9 145.9 147.4 144.1 138.9 132.9 127.5 44 Basic metal materials 5.57 112.0 116.6 118.6 118.3 113.8 114.3 112.8 114.5 117.4 113.1 106.5 101.6 94.7 45 Nondurable goods materials 10.47 174.6 180.2 179.9 177.5 179.3 179.0 176.9 176.5 175.4 175.5 170.6 165.1 157.6 46 Textile, paper, and chemical materials 7.62 181.3 187.6 187.3 185.1 186.8 187.3 183.7 183.5 182.4 182.5 176.4 170.4 160.6 47 Textile materials 1.85 113.0 114.8 115.1 114.4 115.1 114.9 113.4 115.5 116.0 114.9 111.6 107.2 101.9 48 Paper materials 1.62 150.7 150.5 151.0 152.6 152.2 150.9 149.8 150.0 151.5 155.1 149.6 149.6 143.2 49 Chemical materials 4.15 223.8 234.7 233.8 229.5 232.4 233.9 228.4 227.1 224.1 223.4 215.9 206.8 193.6 50 Containers, nondurable 1.70 169.4 173.0 172.3 168.7 172.0 167.8 171.4 171.7 169.4 170.9 166.7 163.5 162.2 51 Nondurable materials n.e.c 1.14 137.6 141.0 141.8 139.6 139.7 140.5 139.6 136.6 137.8 136.2 137.1 131.9 130.6 52 Energy materials 8.48 129.0 130.2 131.6 130.9 123.1 123.0 129.3 133.3 132.6 128.9 128.3 128.5 127.2 53 Primary energy 4.65 114.9 115.8 118.2 116.9 104.2 104.4 113.7 120.3 120.9 117.4 116.4 116.2 114.8 54 Converted fuel materials 3.82 146.1 147.8 148.0 148.1 146.1 145.5 148.2 149.2 146.9 142.9 142.8 143.4 142.4 Supplementary groups 55 Home goods and clothing 9.35 131.8 134.4 134.1 133.6 133.8 134.4 133.9 135.2 134.5 131.1 128.8 126.1 120.6 56 Energy, total 12.23 137.4 138.5 138.5 137.7 132.6 133.5 138.0 141.2 140.5 136.8 136.9 137.4 136.6 57 Products 3.76 156.4 157.3 154.0 153.1 154.1 157.3 157.6 159.1 158.4 154.8 156.1 157.5 157.6 58 Materials 8.48 129.0 130.2 131.6 130.9 123.1 123.0 129.3 133.3 132.6 128.9 128.3 128.5 127.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 1967 1981 1982 Grouping c S o I d C e p p o ro r- - 1 a 9 v 8 g 1 . tion Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct.T Nov. Dec.'' Janf Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities 12.05 155.0 153.3 154.1 154.8 150.5 152.1 156.3 159.1 158.2 155.8 156.1 155.6 154.2 154.1 2 Mining 6.36 142.2 140.4 143.1 143.2 135.2 135.4 141.7 146.5 146.0 145.0 145.3 143.7 142.2 141.7 3 Utilities 5.69 169.1 167.6 166.4 167.8 167.6 170.7 172.7 173.1 171.9 167.8 168.1 168.9 167.5 167.9 4 Electric 3.88 191.0 189.3 187.1 188.9 188.6 192.9 195.6 196.2 194.2 188.3 189.4 190.9 189.3 189.7 5 Manufacturing 87.95 150.4 151.1 151.2 151.6 152.0 152.8 152.4 153.2 153.2 151.1 148.0 145.2 141.9 137.1 6 Nondurable 35.97 164.8 165.6 166.2 165.3 165.9 166.4 165.8 167.1 167.3 165.9 162.8 160.6 157.6 153.2 7 Durable 51.98 140.5 141.0 140.8 142.1 142.5 143.5 143.2 143.6 143.4 140.9 137.8 134.5 131.0 126.0 Mining 8 Metal 10 .51 123.0 125.5 134.1 131.1 123.1 125.0 123.5 123.6 124.1 121.5 119.8 114.8 109.4 9 Coal 11.12 .69 141.3 147.5 159.0 151.2 75.9 77.0 122.9 170.0 167.4 161.9 166.9 160.8 145.5 144.7 10 Oil and gas extraction 13 4.40 146.8 141.4 142.2 144.1 146.1 146.2 148.2 147.7 148.2 148.8 148.9 149.1 150.3 150.9 11 Stone and earth minerals . 14 .75 129.2 138.4 140.0 138.8 133.7 132.2 132.7 133.3 128.2 123.4 122.0 116.7 114.2 Nondurable manufactures 12 Foods 8.75 152.0 151.9 152.5 152.4 151.9 152.2 151.3 151.6 151.9 150.7 151.4 152.7 152.0 13 Tobacco products .67 123.5 125.4 125.7 122.2 122.3 120.9 121.3 123.8 122.4 124.3 124.4 14 Textile mill products 2.68 135.8 138.4 139.3 136.2 138.9 138.8 138.3 139.4 140.7 136.3 132.5 126.3 123.2 15 Apparel products 3.31 123.8 121.6 120.2 121.6 122.6 121.1 122.6 122.6 122.5 117.8 114.4 16 Paper and products 3.21 155.0 156.5 156.0 157.6 157.0 155.9 153.4 154.9 156.7 158.6 153.3 152.3 146.i' 142.9 17 Printing and publishing 4.72 144.4 143.9 144.8 142.7 141.6 141.3 143.1 144.4 146.1 145.9 145.6 144.7 146.3 143.7 18 Chemicals and products 7.74 215.6 218.9 219.8 218.5 219.8 220.6 218.4 221.5 219.2 216.3 208.8 205.2 198.8 19 Petroleum proaucts 1.79 129.8 133.1 131.5 130.3 130.0 129.8 129.3 128.7 130.4 129.1 128.3 128.2 128.9 20 Rubber and plastic products. 2.24 274.3 264.0 270.2 269.5 275.2 280.3 285.1 285.3 286.7 282.2 276.0 263.5 252.0 21 Leather and products .86 69.3 68.9 68.3 68.9 69.8 68.4 70.1 69.6 69.7 71.2 70.8 66.5 Durable manufactures 22 Ordnance, private and government 19.91 3.64 81.1 78.6 78.4 78.5 79.8 80.9 80.9 80.6 81.8 82.3 82.5 83.8 85.3 85.9 23 Lumber ana products 24 1.64 118.8 127.4 126.2 125.6 126.3 126.2 122.5 122.9 119.1 113.2 109.6 104.8 101.8 24 Furniture ana fixtures 25 1.37 157.4 150.0 154.3 155.6 158.7 158.9 162.4 164.9 163.3 159.9 157.2 154.5 150.8 25 Clay, glass, stone products 32 2.74 148.0 156.8 156.4 154.6 154.3 151.7 148.1 148.7 148.2 147.3 143.4 135.8 133.4 26 Primary metals 33 6.57 107.9 114.1 114.5 114.9 110.6 111.9 107.4 109.4 113.1 108.6 102.3 96.7 83.0 27 Iron and steel 331.2 4.21 99.7 108.7 108.4 108.0 103.4 105.6 98.5 99.7 105.1 99.2 92.2 87.2 77.8 28 Fabricated metal products 34 5.93 136.5 135.8 137.6 139.2 139.5 138.4 139.3 140.1 140.0 136.8 133.8 130.5 126.6 121.2 29 Nonelectrical machinery .., 35 9.15 171.0 167.3 168.3 169.2 169.7 172.1 174.1 176.7 176.4 173.9 169.7 167.9 164.8 160.0 30 Electrical machinery 36 8.05 178.6 177.6 174.9 177.4 178.8 179.9 180.1 180.9 182.6 180.0 179.6 176.3 172.2 168.3 31 Transportation equipment 37 9.27 116.1 117.4 116.1 119.5 121.3 123.7 123.4 119.8 115.4 114.2 110.6 106.1 103.6 97.3 32 Motor vehicles and parts 371 4.50 122.3 120.0 119.9 127.1 130.7 136.4 137.5 130.5 123.1 120.4 113.8 105.5 100.7 90.2 33 Aerospace and miscellaneous transportation equipment 372-9 4.77 110.2 114.9 112.6 112.3 112.4 111.8 110.2 109.7 108.2 108.5 107.5 106.8 106.4 103.9 34 Instruments 38 2.11 170.1 173.9 171.1 170.0 170.0 170.6 171.3 172.1 172.3 169.7 168.6 167.2 164.0 159.0 35 Miscellaneous manufactures 39 1.51 154.9 152.9 154.9 155.4 157.3 157.0 158.8 159.4 158.6 154.2 151.5 151.7 149.0 142.3 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.41 612.4 612.9 614.5 618.0 616.2 622.2 619.2 621.4 616.5 611.5 605.0 598.1 593.0 578.0 37 Final 390.91 474.0 471.6 472.8 476.4 476.3 482.4 480.5 481.9 476.4 473.0 470.1 465.3 461.3 449.9 38 Consumer goods. 277.51 318.1 316.8 318.8 320.5 320.0 324.3 322.1 324.0 319.3 317.7 314.3 311.3 308.1 298.3 39 Equipment 113.41 155.9 154.8 154.0 155.9 156.3 158.1 158.5 157.9 157.1 155.3 155.8 154.0 153.3 151.5 40 Intermediate 116.61 138.4 141.2 141.7 141.7 139.9 139.8 138.7 139.5 140.1 138.4 134.9 132.8 131.7 128.2 1. 1972 dollar value. NOTE. Published groupings include some series and subtotals not shown separately. For description and historical data, see Industrial Production—1976 Revision (Board of Governors of the Federal Reserve System: Washington, D.C.), December 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • February 1982 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1981 IItteemm 11997799 11998800 11998811 May June July Aug. Sept. Oct.' Nov.' Dec. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,552 1,191 970 1,167 963 913 865 850 722 723 807 2 1-family . 981 710 558 654 567 528 494 453 398 401 458 3 2-or-more-family 571 481 413 513 396 385 371 397 324 322 349 4 Started 1,745 1,292 1,087 1,158 1,039 1,047 941 916 867 863 978 1,194 852 706 764 688 704 606 645 510 569 579 6 2-or-more-family 551 440 381 394 351 343 335 271 357 294 399 7 Under construction, end of period1 1,140 896 n.a. 894 853 822 788 762r 729 717 n.a. 8 1-family 639 515 n.a. 506 482 462 438 423' 408 401 n.a. 9 2-or-more-family 501 382 n.a. 388 371 361 349 340 321 316 n.a. 10 Completed 1,855 1,502 n.a. 1,273 1,377 1,324 1,226 1,197' 1,255 989 n.a. 11 1-family 1,286 957 n.a. 875 877 864 804 776' 714 652 n.a. 12 2-or-more-family 569 545 n.a. 398 500 460 422 421' 541 337 n.a. 13 Mobile homes shipped 277 222 n.a. 255 246 268 230 235 207 208 n.a. Merchant builder activity in 1-family units 709 530 425 478 402 408 349 322' 359 395 438 15 Number for sale, end of period1 402 340 271 322 310 303 300 295 282 274 267 Price (thousands of dollars)2 Median 16 Units sold 62.7 64.9 69.0 71.2 68.7 69.6 72.8 65.8' 69.4 71.5 69.9 17 Units sold 71.9 76.6 82.9 83.7 84.7 82.7 87.3 81.4' 81.7 85.7 83.5 EXISTING UNITS (1-family) 18 Number sold 3,701 2,881 2,346 2,500 2,660 2,520 2,260 2,050 1,970 1,920 1,950 Price of units sold (thous. of dollars)2 19 Median 55.5 62.1 66.2 66.3 67.7 67.5 68.1 67.1 66.0 65.9 66.9 20 Average 64.0 72.7 78.0 78.6 79.9 79.6 80.5 79.1' 76.6 77.5 78.6 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 230,781 230,273 236,312 235,907 233,998 233,862 229,844 230,892 229,857 231,631 229,261 77 181,690 174,896 182,816 184,077 181,811 182,288 180,576 178,649 178,245 179,222 177,250 73 99,032 87,260 85,720 89,719 85,971 82,916 80,535 78,503 78,202 78,100 78,876 74 Nonresidential, total 82,658 87,636 97,096 94,358 95,840 99,372 100,041 100,146 100,043 101,122 98,374 Buildings 75 Industrial 14,953 13,839 16,839 15,503 16,243 17,182 1188,,229955 18,344 18,558 1188,,337733 17,210 76 Commercial 24,919 29,940 33,308 32,391 32,442 34,028 33,721 33,412 33,046 34,506 33,781 77 Other 7,427 8,654 9,358 8,903 9,735 9,241 9,367 9,402 9,553 9,193 8,784 28 Public utilities and other 35,359 35,203 37,591 37,561 37,420 38,921 38,658 38,988 38,886 39,050 38,599 79 Public 49,088 55,371 53,496 51,830 52,186 51,574 49,268 52,243 51,611 52,407 52,011 30 1,648 1,880 1,956 2,065 2,254 2,091 2,105 2,065 2,116 1,960 1,877 31 Highway 11,998 13,784 13,143 12,419 13,338 13,203 12,227 12,537 11,515 12,478 11,348 37 Conservation and development 4,586 5,089 5,268 4,894 4,912 5,233' 4,717 4,910' 6,978 4,868 4,912 33 Other 30,856 34,618 33,129 32,452 31,682 31,047' 30,219' 32,731' 31,002 33,101 33,874 1. Not at annual rates. NOTE. Census Bureau estimates for all series except (a) mobile homes, which 2. Not seasonally adjusted. are private, domestic shipments as reported by the Manufactured Housing Institute 3. Value of new construction data in recent periods may not be strictly comparable and seasonally adjusted by the Census Bureau, and (b) sales and prices of existing with data in prior periods due to changes by the Bureau of the Census in its units, which are published by the National Association of Realtors. All back ana estimating tecnniques. 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 DDDeeeccc... Item 1981 1981 111999888111 D 19 e 8 c 0 . D 19 e 8 c 1 . === ((( 111 111 999 000 666 000 777 ))) 111 Mar. June Sept. Dec. Aug. Sept. Oct. Nov. Dec. CONSUMER PRICES2 1 12.4 8.9 9.6 7.4 13.5 5.3 .8 1.2 .4 .5 .4 281.5 •> 11.1 6.0 8.9 2.1 9.2 3.8 .6 .9 .4 .2 .3 258.4 3 10.2 4.3 2.1 -.1 10.9 3.8 .8 1.0 .3 .2 .4 277.8 4 11.5 6.7 12.3 3.1 8.6 3.6 .5 .8 .4 .2 .3 246.5 10.7 5.7 -.7 9.0 12.4 2.6 1.0 .7 .0 .3 .4 233.7 6 12.5 7.9 29.8 -2.0 3.6 2.8 .3 .5 .3 .2 .1 261.1 7 14.2 13.0 10.3 15.1 19.5 7.3 1.2 1.5 .4 .8 .5 321.8 8 Rent 9.1 8.5 7.0 7.7 10.2 9.0 1.2 .8 .8 .7 .7 216.5 9 14.9 13.7 10.9 16.1 20.9 7.1 1.2 1.6 .4 .9 .4 342.8 Other groupings in 12.9 9.9 11.7 9.0 14.1 5.4 .8 1.2 .4 .5 .4 280.8 11 12.1 9.6 5.8 11.8 15.2 5.7 .9 1.2 .4 .5 .5 267.9 1122 1166..55 10.1 33..11 1166..99 2211..33 ..44 1.1 11..66 -.3 ..22 .2 367.8 PRODUCER PRICES 13 11.8 7.0 13.3 6.8 2.8 5.4 ..22 ..11 .6 .5 .3 275.3 14 11.9 6.5 13.6 66..11 2.1 4.5 ..11 ..11 .4 .5 .2 275.6 IS 7.5 1.5 1.6 11..88 5.6 -2.5 .3 -.3 -.2 -.5 .1 253.0 16 14.2 8.4 18.6 7.9 .7 7.4 .0 .2 .7 .8 .2 282.8 17 11.4 9.2 12.0 9.8 5.7 9.4 .6 .1 .9 .8 .6 274.1 18 12.4 7.4 14.3 7.7 4.3 3,5 .5 .2 .0 .4 .4 315.1 Crude materials 19 19.1 10.4 39.7 9.5 2.1 -4.9 -.9 .7 .8 -.6 .1 479.1 2200 88..66 -14.0 --2233..11 8.6 -12.1 --2255..22 -1.0 -2.5 -2.5 -2.1 -2.5 233.7 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 • February 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 1979 1980 198F Q4 Q1 Q2 Q3 GROSS NATIONAL PRODUCT 1 Total 2,413.9 2,626.1 2,922.2 2,730.6 2,853.0 2,885.8 2,965.0 By source 2 Personal consumption expenditures 1,510.9 1,672.8 1,858.1 1,751.0 1,810.1 1,829.1 1,883.9 3 Durable goods 212.3 211.9 232.0 223.3 238.3 227.3 236.2 4 Nondura 602.2 675.7 743.4 703.5 726.0 735.3 751.3 5 Services 696.3 785.2 882.7 824.2 845.8 866.5 896.4 6 Gross private domestic investment 415.8 395.3 450.6 397.7 437.1 458.6 463.0 7 Fixed investment 398.3 401.2 432.4 415.1 432.7 435.3 435.6 8 Nonresidential 279.7 296.0 327.1 302.1 315.9 324.6 335.1 9 Structures 96.3 108.8 125.0 111.5 117.2 123.1 128.3 10 Producers' durable equipment 183.4 187.1 202.0 190.7 198.7 201.5 206.8 11 Residential structures 118.6 105.3 105.3 113.0 116.7 110.7 100.5 12 Nonfarm 113.9 100.3 99.8 107.6 111.4 105.4 94.9 13 Change in business inventories 17.5 -5.9 18.2 -17.4 4.5 23.3 27.5 14 Nonfarm 13.4 -4.7 15.9 -14.0 21.5 23.1 15 Net exports of goods and services 13.4 23.3 23.8 23.3 29.2 20.8 29.3 16 Exports 281.3 339.8 366.7 346.1 367.4 368.2 368.0 17 Imports 267.9 316.5 342.9 322.7 338.2 347.5 338.7 18 Government purchases of goods and services ... 473.8 534.7 589.6 558.6 576.5 577.4 588.9 19 Federal 167.9 198.9 228.6 212.0 221.6 219.5 226.4 20 State and local 305.9 335.8 361.1 346.6 354.9 357.9 362.5 By major type of product 21 Final sales, total 2,396.4 2,632.0 2,904.0 2,748.0 2,848.5 2,862.5 2,937.6 22 Goods 1,055.9 1,130.4 1.271.2 1,169.0 1,247.5 1,257.0 1,298.3 23 Durable 451.2 458.6 507.0 476.7 501.4 516.9 525.2 24 Nondurable 604.7 671.9 764.2 692.2 746.1 740.1 773.0 25 Services 1,097.2 1.229.6 1.370.3 1,285.3 1,317.1 1,344.7 1,390.5 26 Structures 260.8 266.0 280.7 276.4 288.4 284.1 276.3 27 Change in business inventories 17.5 -5.9 18.2 -17.4 4.5 23.3 27.5 28 Durable goods 11.5 -4.0 9.0 .7 -4.2 18.5 18.6 29 Nondurable goods 6.0 -1.8 9.2 -18.1 8.6 4.8 8.9 30 MEMO: Total GNP in 1972 dollars 1,483.0 1.480.7 1,509.6 1,485.6 1,516.4 1,510.4 1,515.8 NATIONAL INCOME 31 Total 1,963.3 2.121.4 2,343.7 2,204.8 2,291.1 2,320.9 2.377.6 32 Compensation of employees 1,460.9 1.596.5 1,771.7 1,661.8 1,722.4 1,752.0 1.790.7 33 Wages and salaries 1,235.9 1.343.6 1,482.9 1,397.3 1,442.9 1,467.0 1,498.7 34 Government and government enterprises... 235.9 253.6 273.9 263.3 267.1 270.5 274.7 35 Other 1,000.0 1,090.0 1,208.9 1,134.0 1,175.7 1,196.4 1,224.0 36 Supplement to wages and salaries 225.0 252.9 288.8 264.5 279.5 285.1 292.0 37 Employer contributions for social insurance 106.4 115.8 134.7 121.0 131.5 133.2 135.6 38 Other labor income 118.6 137.1 154.2 143.5 148.0 151.8 156.3 39 Proprietors'income1 131.6 130.6 134.4 134.0 132.1 134.1 137.1 40 Business and professional1 100.7 107.2 112.4 111.6 113.2 112.5 112.4 41 Farm1 30.8 23.4 22.0 22.5 18.9 21.7 24.7 42 Rental income of persons2 30.5 31.8 33.6 32.4 32.7 33.3 33.9 43 Corporate profits1 196.8 182.7 189.0 183.3 203.0 190.3 195.7 44 Profits before tax3 255.4 245.5 230.2 249.5 257.0 229.0 234.4 45 Inventory valuation adjustment -42.6 -45.7 -29.3 -48.4 -39.2 -24.0 -25.3 46 Capital consumption adjustment -15.9 -17.2 -13.9 -17.8 -14.7 -14.7 -13.4 47 Net interest 143.4 179.8 215.0 193.3 200.8 211.0 220.2 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 AAccccoouunntt 11997799 11998800 11998811'''' Q4 Q1 Q2 Q3 Q4P PERSONAL INCOME AND SAVING 1 Total personal income 1,943.8 2,160.2 2,403.6 2,256.2 2,319.8 2,368.5 2,441.7 2,484.4 ? Wage and salary disbursements 1,236.1 1,343.7 1,482.8 1,397.8 1,442.9 1,467.0 1,498.5 1,522.9 Commoditv-producing industries 437.9 465.4 512.7 484.0 501.3 508.1 520.2 521.2 4 Manufacturing 333.4 350.7 387.4 364.0 377.4 386.7 393.9 391.4 S Distributive industries 303.0 328.9 361.1 340.6 351.9 357.8 365.3 369.5 6 Service industries 259.2 295.7 335.1 310.0 322.5 330.5 338.5 348.8 7 Government and government enterprises 236.1 253.6 273.9 263.3 267.1 270.5 274.5 283.4 8 118.6 137.1 154.2 143.5 148.0 151.8 156.3 160.5 9 Proprietors' income1 131.6 130.6 134.4 134.0 132.1 134.1 137.1 134.1 10 Business and professional1 100.8 107.2 112.4 111.6 113.2 112.5 112.4 111.5 11 30.8 23.4 22.0 22.5 18.9 21.7 24.7 22.7 1? Rental income of persons2 30.5 31.8 33.6 32.4 32.7 33.3 33.9 34.5 N Dividends 48.6 54.4 61.3 56.1 58.0 60.2 63.0 64.1 14 Personal interest income 209.6 256.3 308.6 269.7 288.7 300.9 315.7 329.0 IS Transfer payments 249.4 294.2 332.9 313.9 319.6 324.2 342.2 345.7 16 Old-age survivors, disability, and health insurance benefits 131.8 153.8 180.3 165.3 169.8 172.0 188.5 191.1 17 LESS: Personal contributions for social insurance 80.6 87.9 104.2 91.2 102.3 103.1 105.0 106.5 18 EQUALS: Personal income 1,943.8 2,160.2 2,403.6 2,256.2 2,319.8 2,368.5 2,441.7 2,484.4 19 LESS: Personal tax and nontax payments 302.0 338.5 388.2 359.2 372.0 382.9 399.8 398.0 20 EQUALS: Disposable personal income 1,641.7 1,821.7 2,015.4 1,897.0 1,947.8 1,985.6 2,042.0 2,086.4 21 LESS: Personal outlays 1,555.5 1,720.4 1,908.8 1,799.4 1,858.9 1,879.0 1,935.1 1,962.3 22 EQUALS: Personal saving 86.2 101.3 106.6 97.6 88.9 106.6 106.9 124.1 MEMO: Per capita (1972 dollars) 7^ Gross national product 6,588 6,503 6,567 66,,449999 6,619 66,,558811 66,,558855 66,,448822 24 Personal consumption expenditures 4,135 4,108 4,172 4,142 4,191 4,162 4,184 4,153 25 Disposable personal income 4,493 4,473 4,525 4,488 4,511 4,517 4,535 4,538 26 Saving rate (percent) 5.2 5.6 5.3 5.1 4.6 5.4 5.2 6.0 GROSS SAVING 27 Gross saving 412.0 401.9 453.6 406.7 442.6 465.3 469.4 n.a. 28 Gross private saving 398.9 432.9 477.6 436.4 451.1 475.3 486.2 n.a. 29 Personal saving 86.2 101.3 106.6 97.6 88.9 106.6 106.9 124.1 30 Undistributed corporate profits1 59.1 44.3 49.5 40.4 55.7 52.0 52.8 n.a. 31 Corporate inventory valuation adjustment -42.6 -45.7 -29.3 -48.4 -39.2 -24.0 -25.3 -20.9 Capital consumption allowances 3? Corporate 155.4 175.4 197.7 118833..22 187.5 119944..66 220011..11 220077..77 33 Noncorporate 98.2 111.8 123.7 115.8 119.0 122.1 125.4 128.4 34 Wage accruals less disbursements .0 .0 .0 .5 .0 0 .0 .0 35 Government surplus, or deficit (-), national income and product accounts 11.9 -32.1 -25.1 -30.8 -9.7 -U.2 --1177..99 n.a. 36 Federal -14.8 -61.2 -61.6 -67.9 -46.6 -47.2 -55.7 n.a. 37 State and local 26.7 29.1 36.5 37.1 36.9 36.1 37.8 n.a. 38 Capital grants received by the United States, net 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 39 Gross investment 414.1 401.2 452.9 400.1 446.0 458.3 469.6 437.6 40 Gross private domestic 415.8 395.3 450.6 397.7 437.1 458.6 463.0 443.6 41 Net foreign -1.7 5.9 2.3 2.3 8.8 -.2 6.5 -6.1 42 Statistical discrepancy 2.2 -.7 -0.8 -6.6 3.4 -6.9 .2 n.a. 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • February 1982 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1980 1981 IItteemm ccrreeddiittss oorr ddeebbiittss 11997788 11997799 11998800 Q3 Q4 Q1 Q2 Q3 p 1 Balance on current account -14,075 1,414 3,723 44,,997755 11,,339900 33,,226633 11,,114422 2,100 11,,114499 33,,224444 33,,554466 22,,443388 -886 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 12 Change in U.S. official reserve assets (increase, -) 732 -1,132 -8,155 -1,109 -4,279 -4,529 -905 -4 13 Gold -65 -65 0 0 0 0 0 0 14 Special drawing rights (SDRs) 1,249 -1,136 -16 -261 1,285 -1,441 -23 -225 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 -102 868 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, + )3f 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 -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 6,719 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 11997799 11998800 11998811 June July Aug. Sept. Oct. Nov. Dec. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 181,860 220,626 233,677 19,870 19,264 19,050 19,655 19,044 19,118 18,821 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 209,458 244,871 261,305 21,975 19,807 23,528 21,229 23,234 22,522 19,516 3 Trade balance -27,598 -24,245 -27,628 -2,105 -542 -4,478 -1,574 -4,190 -3,404 -695 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 July Aug. Sept. Oct. Nov. Dec/ Jan. 1 Total' 18,650 18,956 26,756 28,870 29,265 29,716 30,248 31,002 30,075 30,098 2 Gold stock, including Exchange Stabilization Fund1 11,671 11,172 11,160 11,154 11,154 11,152 11,152 11,152 11,151 11,151 3 Special drawing rights2,3 1,558 2,724 2,610 3,717 3,739 3,896 3,949 4,109 4,095 4,176 4 Reserve position in International Monetary Fund2 1,047 1,253 2,852 4,157 4,341 4,618 4,736 5,009 5,055 5,237 5 Foreign currencies4,5 4,374 3,807 10,134 9,842 10,031 10,050 10,411 10,732 9,774 9,534 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 • February 1982 3.13 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1981 A 11997788'' 11998800 May June July Aug. Sept. Oct. Nov.? All foreign countries 1 Total, all currencies 306,795 364,409 401,135 417,187 422,946 433,238 433,242 450,234 444,654 462,559 2 Claims on United States 17,340 32,302 28,460 38,645 35,217 43,074 41,533 46,369' 41,554 44,612 3 Parent bank 12,811 25,929 20,202 28,012 24,311 30,994 29,782 32,249' 26,833 26,592 4 Other 4,529 6,373 8,258 10,633 10,906 12,080 11,751 14,120' 14,721 18,020 5 Claims on foreigners 278,135 317,330 354,960 359,531 368,644 370,938 372,378 384,407' 383,463 397,421 6 Other branches of parent bank 70,338 79,662 77,019 76,224 79,814 82,128 83,171 84,627' 83,597 89,244 7 Banks 103,111 123,420 146,448 148,988 154,682 154,760 152,286 159,637' 156,833 161,411 8 Public borrowers2 23,737 26,097 28,033 27,806 27,872 28,728 29,270 29,927' 30,211 30,088 9 Nonbank foreigners 80,949 88,151 103,460 106,513 106,276 105,322 107,651 110,216' 112,822 116,678 10 Other assets 11,320 14,777 17,715 19,011 19,085 19,226 19,331 19,458 19,637 20,526 11 Total payable in U.S. dollars 224,940 267,713 291,798 312,683 320,308 330,758 328,784 343,067 336,817 348,991 12 Claims on United States 16,382 31,171 27,191 37,403 33,963 41,873 40,250 45,116' 40,370 43,322 13 Parent bank 12,625 25,632 19,896 27,709 24,041 30,742 29,490 31,991 26,639 26,399 14 Other 3,757 5,539 7,295 9,694 9,922 11,131 10,760 13,125' 13,731 16,923 15 Claims on foreigners 203,498 229,120 255,391 264,263 275,185 277,354 276,935 286,367' 284,590 293,591 16 Other branches of parent bank 55,408 61,525 58,541 58,711 62,696 64,725 65,477 66,279' 65,859 69,917 17 Banks 78,686 96,261 117,342 121,858 128,048 127,469 124,504 131,524' 127,944 131,478 18 Public borrowers2 19,567 21,629 23,491 23,273 23,554 24,333 24,410 24,709 25,199 25,182 19 Nonbank foreigners 49,837 49,705 56,017 60,421 60,887 60,827 62,544 63,855 65,588 67,014 20 Other assets 5,060 7,422 9,216 11,017 11,160 11,531 11,599 11,584 11,857 12,078 United Kingdom 21 Total, all currencies 106,593 130,873 144,717 146,640 149,704 148,774 150,161 154,096 153,615 161,494 22 Claims on United States 5,370 11,117 7,509 10,382 9,650 9,130 9,995 11,167 9,668 9,315 23 Parent bank 4,448 9,338 5,275 7,666 7,098 6.167 7,189 7,842 6,351 5,163 24 Other 922 1,779 2,234 2,716 2,552 2.963 2,806 3,325 3,317 4,152 25 Claims on foreigners 98,137 115,123 131,142 130,200 134,092 133,626 134,034 137,056 137,879 145,847 26 Other branches of parent bank 27,830 34,291 34,760 34,834 35,914 37,035 38,035 39,117' 38,799 41,467 27 Banks 45,013 51.343 58,741 57,611 60,261 59,639 58,362 58,986' 59,307 63,044 28 Public borrowers2 4,522 4,919 6,688 6,720 6,811 6,822 6,665 7,112 7,305 7,463 29 Nonbank foreigners 20,772 24.570 30,953 31,035 31,106 30,130 30,972 31,841 32,468 33,873 30 Other assets 3,086 4,633 6,066 6,058 5,962 6,018 6,132 5,873 6,068 6,332 31 Total payable in U.S. dollars 75,860 94,287 99,699 104,959 108,854 107,961 109,008 113,014 112,064 117,454 32 Claims on United States 5,113 10,746 7,116 9,932 9,160 8,628 9,552 10,703 9,201 8,811 33 Parent bank 4,386 9.297 5,229 7,611 7,059 6,110 7.128 7,779 6,299 5,111 34 Other 727 1,449 1,887 2,321 2,101 2,518 2.424 2,924 2,902 3,700 35 Claims on foreigners 69,416 81,294 89,723 91,632 96,230 95,832 95.887 98,611 98,934 104,734 36 Other branches of parent bank 22,838 28,928 28,268 28,527 29,725 30,789 31.710 32,845' 32,698 34,898 37 Banks 31,482 36,760 42,073 42,786 45.631 44,488 42,957 43,605' 43,345 46,463 38 Public borrowers2 3,317 3,319 4,911 4,967 5,123 5,176 5,006 5,281 5,485 5,500 39 Nonbank foreigners 11,779 12,287 14,471 15,352 15,751 15,379 16,214 16,880 17,406 17,873 40 Other assets 1,331 2,247 2.860 3,395 3.464 3,501 3,569 3,700 3,929 3,909 Bahamas and Caymans 41 Total, all currencies 91,735 108,977 123,837 133,594 135,081 145,290 142,087 147,904 142,687 148,557 42 Claims on United States 9,635 19,124 17,751 24,531 21,812 29,808 27,131 29,896' 26,741 29,908 43 Parent bank 6,429 15,196 12,631 17.511 14,477 21,654 19,303 20,372 16,717 17,665 44 Other 3,206 3,928 5,120 7.020 7,335 8,154 7,828 9,524' 10,024 12,243 45 Claims on foreigners 79,774 86,718 101,926 104,197 108,477 110,584 109,888 113,048' 110.781 113,487 46 Other branches of parent bank 12,904 9,689 13,342 12,235 13.569 13,788 13,909 13,174 13,066 13,983 47 Banks 33,677 43,189 54,861 57,073 59,705 60,748 59,316 62,946' 60,220 61,337 48 Public borrowers2 11,514 12,905 12,577 12,169 12,038 12,471 12,610 12,431 12.637 12,730 49 Nonbank foreigners 21,679 20,935 21,146 22,720 23,165 23,577 24,053 24,497 24,858 25,437 50 Other assets 2,326 3,135 4,160 4,866 4,792 4,898 5,068 4,960 5,165 5,162 51 Total payable in U.S. dollars 85,417 102,368 117,654 127,969 129,438 139,514 136,054 142,053 136,854 142,632 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 ' h'l't rt nt 11997788'' 11997799 11998800 May June July Aug. Sept. Oct. NOV.P All foreign countries 52 Total, all currencies 306,795 364,409 401,135 417,187 422,946 433,238 433,242 450,234 444,654 462,559 53 To United States 58,012 66,689 91,079 105,343 109,322 118,093 116,190 124,096R 120,039 128,124 54 Parent bank 28,654 24,533 39,286 41,039 44,327 43,069 44,010 48,592' 45,909 49,428 55 Other banks in United States 12,169 13,968 14,473 16,301 16,136 17,578 15,686 17,657R 16,436 17,110 56 Nonbanks 17,189 28,188 37,275 48,003 48,859 57,446 56,494 57,847R 57,694 61,586 57 To foreigners 238,912 283,510 295,411 296,462 298,169 299,240 300,081 306,785' 305,040 315,349 58 Other branches of parent bank 67,496 77,640 75,773 75,815 79,033 81,387 80,991 83,336R 82,038 87,543 59 Banks 97,711 122,922 132,116 133,707 131,854 129,290 125,563 127,794' 128,536 132,012 60 Official institutions 31,936 35,668 32,473 27,479 26,316 25,682 28,209 28,715R 27,685 24,541 61 Nonbank foreigners 41,769 47,280 55,049 59,461 60,966 62,881 65,318 66,940 66,781 71,253 62 Other liabilities 9,871 14,210 14,690 15,382 15,455 15,905 16,971 19,353 19,575 19,086 63 Total payable in U.S. dollars 230,810 273,857 303,281 324,479 332,284 343,947 341,596 355,030r 349,602 360,928 64 To United States 55,811 64,530 88,157 102,971 106,740 115,481 113,526 121,13C 117,362 125,144 65 Parent bank 27,519 23,403 37,528 39,604 42,822 41,620 42,481 46,766 44,170 47,482 66 Other banks in United States 11,915 13,771 14,203 16,175 15,945 17,391 15,529 17,479R 16,285 17,011 67 Nonbanks 16,377 27,356 36,426 47,192 47,973 56,470 55,516 56,885' 56,907 60,651 68 To foreigners 169,927 201,514 206,883 211,915 215,931 218,178 217,239 221,090' 219,818 224,278 69 Other branches of parent bank 53,396 60,551 58,172 59,108 62,292 64,884 64,338 66,256R 65,160 69,542 70 Banks 63,000 80,691 87,497 89,875 89,909 88,554 83,842 84,670' 84,552 84,691 71 Official institutions 26,404 29,048 24,697 21,355 20,853 20,108 22,056 22,836R 21,948 18,911 72 Nonbank foreigners 27,127 31,224 36,517 41,577 42,877 44,632 47,003 47,328 48,158 51,134 73 Other liabilities 5,072 7,813 8,241 9,593 9,613 10,288 10,831 12,810 12,422 11,506 United Kingdom 74 Total, all currencies 106,593 130,873 144,717 146,640 149,704 148,774 150,161 154,096 153,615 161,494 75 To United States 9,730 20,986 21,785 26,688 29,598 30,383 31,408 34,143R 32,960 36,315 76 Parent bank 1,887 3,104 4,225 4,376 4,371 4,138 4,189 5,370 3,542 4,044 77 Other banks in United States 4,189 7,693 5,716 5,973 6,172 5,864 5,646 6,396R 6,054 7,102 78 Nonbanks 3,654 10,189 11,844 16,339 19,055 20,381 21,573 22,377R 23,364 25,169 79 To foreigners 93,202 104,032 117,438 114,655 115,099 113,560 113,191 113,862R 114,415 118,361 80 Other branches of parent bank 12,786 12,567 15,384 14,169 14,996 15,103 15,255 15,121R 15,544 16,050 81 Banks 39,917 47,620 56,262 56,209 55,923 54,351 51,532 51,830 53,634 56,239 82 Official institutions 20,963 24,202 21,412 18,508 17,197 16,352 17,866 18,687 17,442 15,089 83 Nonbank foreigners 19,536 19,643 24,380 25,769 26,983 27,754 28,538 28,224 27,795 30,983 84 Other liabilities 3,661 5,855 5,494 5,297 5,007 4,831 5,562 6,091 6,240 6,818 85 Total payable in U.S. dollars 77,030 95,449 103,440 109,209 113,427 113,247 114,191 117,920 117,346 122,362 86 To United States 9,328 20,552 21,080 26,221 28,858 29,606 30,661 33,464R 32,408 35,705 87 Parent bank 1.836 3,054 4,078 4,306 4,277 4,054 4,132 5,309 3,484 3,955 88 Other banks in United States 4,101 7,651 5,626 5,919 6,094 5,768 5,594 6,317R 5,976 7,061 89 Nonbanks 3,391 9,847 11,376 15,996 18,487 19,784 20,935 21,838' 22,948 24,689 90 To foreigners 66,216 72,397 79,636 79,713 81,544 80,400 79,988 80,638R 81,260 82,757 91 Other branches of parent bank 9.635 8,446 10,474 9,327 10,289 10,566 10,943 10,747R 11,121 11,448 92 Banks 25,287 29,424 35,388 35,870 36,701 35,789 32,914 33,010 34,312 35,141 93 Official institutions 17,091 20,192 17,024 14,851 14,000 13,133 14,244 15,514 14,415 12,133 94 Nonbank foreigners 14,203 14,335 16,750 19,665 20,554 20,912 21,887 21,367 21,412 24,035 95 Other liabilities 1,486 2,500 2,724 3,275 3,025 3,241 3,542 3,818 3,678 3,900 Bahamas and Caymans 96 Total, all currencies 91,735 108,977 123,837 133,594 135,081 145,290 142,087 147,904 142,687 148,557 97 To United States 39,431 37,719 59,666 69,048 69,407 77,197 73,924 77,533 75,991 80,161 98 Parent bank 20,482 15,267 28,181 29,583 32,160 31,034 31,265 33,282 33,387 36,066 99 Other banks in United States 6,073 5,204 7,379 9,279 8,822 10,517 8,938 9,964R 9,321 8,971 100 Nonbanks 12,876 17,248 24,106 30,168 28,425 35,646 33,721 34,287R 33,283 35,124 101 To foreigners 50,447 68,598 61,218 61,170 62,470 64,491 64,565 66,627 672,795 64,462 102 Other tranches of parent bank 16,094 20,875 17,040 17,950 19,484 20,989 20,315 22,393 20,521 23,307 103 Banks 23,104 33,631 29,895 28,846 28,326 28,056 27,538 27,983 25,396 24,712 104 Official institutions 4,208 4,866 4,361 3,666 3,685 3,934 4,605 4,028 4,078 3,381 105 Nonbank foreigners 7,041 9,226 9,922 10,708 10,975 11,512 12,107 12,223 12,800 13,062 106 Other liabilities 1,857 2,660 2,953 3,376 3,204 3,602 3,598 3,744 3,901 3,934 107 Total payable in U.S. dollars 87,014 103,460 119,657 129,811 131,120 141,241 137,754 143,507 138,094 144,034 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • February 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.? 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 6677,,667711 4477,,666666 5566,,224433 57,858 5577,,771199 5555,,665599 5522,,992244 5500,,117799 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 5,088 5,008 10 59,004 52,978 70,782 81,014 83,124 85,845 84,641 87,331 89,188 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 11,,441155 1,876 1,425 1,699 2,478 1,621 1,709 5 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 87,699 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 67,415 47,666 56,243 57,858 57,719 55,659 52,921 50,179 48,867 49,644 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 96,415 108,542 101,464 107,806 107,448 117,630 102,232 107,273 30 Banks' own liabilities 52,626 83,299 90,456 100,442 93,250 98,886 98,350 108,618 92,032 96,442 31 Unaffiliated foreign banks 15,315 19,482 21,786 18,886 19,208 18,168 17,933 20,919 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 9,01230 10,200 10,831 37 U.S. Treasury bills and certificates 300 422 623 945 1,170 1,069 1,217 1,439 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 1100,,999955 12,275 12,719 13,483 13,393 14,084 14,252 44 Other2 368 1,048 1,033 888899 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 • February 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 Belgium-Luxembourg 2,550 2,375 4,019 5,469 5,056 4,759 4,240 4,852 3,644 3,989 6 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 1U 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 15 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 iy United Kingdom 14,272 24,700 22,680 25,485 24,428 23.220 24,194 26,335 23,985 24,258 2U 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 2b 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 2y 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 3y 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 46,192 48,722 46,844 48,631 45 Mainland 67 49 49 54 102 84 74 76 85 200 4b 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 4)6 458 408 394 455 491 433 511 4y 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 5y 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 11,,556688 11,,117744 11,,221122 11,,006655 66 All other 211 226 67 Nonmonetary international and reeional 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 by Latin American regional 808 806 890 729 722 765 747 750 724 797 /0 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 115,488 133,906 172,514 187,092 197,264 196,800 198,827 210,031 196,385 207,869 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 254 147 127 162 125 132 166 158 186 207 1 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 16,675 15,454 14,832 19,380 15,638 17,855 20 Yugoslavia 363 611 853 904 988 992 948 932 954 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 1,601 33 Cuba 0 4 3 3 3 7 14 3 4 6 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 17,245 17,148 18,498 38 Netherlands Antilles 273 248 821 756 874 933 894 869 928 946 39 Panama 3,098 6,041 4,974 6,054 6,210 6,029 6.167 6,667 5,791 5,645 40 Peru 918 652 890 871 818 803 796 788 795 705 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 25,362 30,730 39,078 43,020 46,027 44,999 44,934 45,564 43,134 44,912 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 11,,111144 65 Australia 877 673 859 898 939 988 952 959 962 998899 66 All other 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 • February 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,,,,,,,666666644444442222222 2 Banks' own claims on foreigners 111111111111115555555,,,,,,,555555544444445555555 111111133333333333333,,,,,,,999999944444443333333 111111177777772222222,,,,,,,555555599999992222222 187,139 111111199999997777777,,,,,,,333333311111112222222 196.860 198,878 222222211111110000000,,,,,,,000000088888886666666 196,428 207,909 3 Foreign public borrowers 11111110000000,,,,,,,333333344444446666666 11111115555555,,,,,,,999999933333337777777 22222220000000,,,,,,,888888888888882222222 21,541 22222222222222,,,,,,,888888822222225555555 24,020 24,414 22222225555555,,,,,,,000000022222221111111 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 By 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 By area Maturity of 1 year or less1 8 Europe 15,169 15,235 1166,,994400 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 1?. 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

Bank-Reported Data A63 3.20 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1 Billions of dollars, end of period 1979 1980 1981 AArreeaa oorr ccoouunnttrryy 11997777 1199778822 Sept. Dec. Mar. June Sept. Dec. Mar. June Sept. P 1 Total 240.0 266.2 294.0 303.8 308.5 328.7 339.1 351.9 370.9 382.2 398.2 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 Italy 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 15 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 26 Ecuador 1.1 1.6 1.6 1.7 1.8 1.8 1.9 2.1 2.0 2.0 2.1 27 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 32 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 Peru 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 42 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 .6 .6 .7 .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 62 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 Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United Arab Emirates) as foreign branch of the same banking institution. The data in this table combine well as Bahrain and Oman (not formally members of OPEC). foreign branch claims in table 3.13 (the sum of lines 7 through 10) with the claims 4. 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 table 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 • February 1982 3.21 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1981 1981 CCCooouuunnntttrrryyy ooorrr aaarrreeeaaa 11997799 11998800 Jan.- NovP May June July Aug. Sept. Oct. Nov./1 Holdings (end of period)' 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 Total* 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.P 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 11997799 11998800 J N a o n v .- . May June July Aug. Sept. Oct. Nov.'' U.S. corporate securities STOCKS 1 Foreign purchases 22,783 40,273 37,565 4,076 4,384 3,455 3,152 2,847 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 -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 1,281 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 -81 -356 -1,505 43 Europe -1,698 -1,105 -809 75 -41 147 -55 76 -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 -104 141 131 177 -113 -148 47 Africa -63 24 -60 -3 -6 -2 -3 -6 1 1 48 Other countries 25 78 84 29 75 -23 1 -3 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 • February 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 17,170 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 11,492 11,386 5 Payable in dollars 3,853 5,207 8,350 5,907 5,954 8,350 8,860 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 8,588 9,693 10,521 10,232 10,337 10,521 10,188 9,796 8 Trade payables 4,001 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 88,,888888 9,585 9,413 9,487 9,585 9,296 8,944 11 Payable in foreign currencies 914 880055 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 16 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 1,244 1,271 11,,336611 11,,224444 1,287 1,156 42 Bahamas 25 69 8 26 88 88 1 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 33,,000055 3,071 2,788 49 Japan 448 494 802 418 502 880022 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 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 3,003 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 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 46,098 5,212 23 Canada 4,549 4,984 5,057 4,968 4,948 5,057 6,611 6,168 74 Latin America and Caribbean 5,714 6,282 7,682 6,962 6,812 7,682 8,552 7,882 75 Bahamas 3,001 2,757 3,424 3,098 2,845 3,424 3,947 3,231 76 Bermuda 80 30 135 25 65 135 13 33 7,7 Brazil 151 163 96 120 116 96 22 20 78 British West Indies 1,291 2,007 2,681 2,414 2,342 2,681 3,398 3,396 79 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 399 589 591 514 571 591 597 570 41 Netherlands 267 298 318 297 289 318 347 308 47 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 57 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 • February 1982 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Jan. 31, 1982 Rate on Jan. 31, 1982 Rate on Jan. 31, 1982 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Argentina 187.55 Jan. 1982 France' 17.5 Oct. 1981 Sweden 11.0 Oct. 1981 Austria .. 6.75 Mar. 1980 Germany, Fed. Rep. of 7.5 May 1980 Switzerland 6.0 Sept. 1981 Belgium.. 14.0 Jan. 1982 Italy 19.0 Mar. 1981 United Kingdom- Brazil.... 49.0 Mar. 1981 Japan 5.5 Dec. 1981 Venezuela Aug. 1981 Canada .. 14.59 Jan. 1982 Netherlands 8.5 Jan. 1982 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 1982 CCoouunnttrryy,, oorr ttyyppee 11997799 11998800 11998811 July Aug. Sept. Oct. Nov. Dec. Jan. 1 Eurodollars 11.96 14.00 16.79 18.50 18.79 17.80 16.34 13.33 13.24 14.29 2 United Kingdom 13.60 16.59 13.86 13.63 14.02 14.60 16.27 15.03 15.31 15.14 3 Canada 11.91 13.12 18.34 19.67 21.84 20.42 18.84 16.53 15.97 15.01 4 Germany 6.64 9.45 12.05 12.92 12.87 12.48 11.72 11.05 10.72 10.43 5 Switzerland 2.04 5.79 9.15 9.76 9.05 10.56 10.85 9.88 9.76 8.53 6 Netherlands 9.33 10.60 11.52 12.38 13.54 12.96 12.57 11.70 11.03 10.49 7 France 9.44 12.18 15.28 17.34 17.40 17.65 16.47 15.35 15.30 15.07 8 Italy 11.85 17.50 19.98 20.78 20.94 21.07 21.00 21.12 21.24 21.38 9 Belgium 10.48 14.06 15.28 16.16 16.00 16.00 15.83 15.28 15.48 15.09 10 Japan 6.10 11.45 7.58 7.16 7 2° 7.26 7.13 7.15 6.75 6.41 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 19M 1982 CCoouunnttrryy//ccuurrrreennccyy 11997799 11998800 11998811 July Aug. Sept. Oct. Nov. Dec. Jan. 1 Australia/dollar 111.77 114.00 114.95 114.27 113.99 114.86 114.32 114.55 113.39 111.41 2 Austria/schilling 7.4799 7.7349 6.2936 5.8225 5.6968 6.0554 6.3356 6.4022 6.3088 6.2243 3 Belgium/franc 3.4098 3.4247 2.7007 2.5027 2.4466 2.5978 2.6557 2.6724 2.6115 2.5623 4 Canada/dollar 85.386 85.530 83.408 82.601 81.766 83.275 83.136 84.235 84.382 83.850 5 Denmark/krone 19.010 17.766 14.080 13.074 12.732 13.552 13.825 13.944 13.661 13.337 6 Finland/markka 27.732 26.892 23.159 22.045 21.607 22.225 22.601 23.020 22.902 22.710 7 France/franc 23.504 23.694 18.489 17.253 16.720 17.769 17.762 17.782 17.502 17.153 8 Germany/deutsche mark 54.561 55.089 44.362 40.977 39.988 42.545 44.370 44.862 44.293 43.596 9 India/rupee 12.265 12.686 11.548 11.229 11.038 10.971 10.948 10.947 10.952 10.926 10 Ireland/pound 204.65 205.77 161.32 149.40 146.04 155.04 157.50 158.95 157.30 153.97 11 Italy/lira .12035 .11694 .08842 .08233 .08038 .08424 .08374 .08392 .08290 .08142 12 Japan/yen .45834 .44311 .45432 .43055 .42881 .43582 .43198 .44843 .45675 .44483 13 Malaysia/ringgit 45.720 45.967 43.406 42.519 42.119 42.527 43.500 44.323 44.489 44.297 14 Mexico/peso 4.3826 4.3535 4.0785 4.0650 4.0301 3.9859 3.9371 3.8878 3.8358 3.7780 15 Netherlands/guilder 49.843 50.369 40.191 36.833 36.009 38.329 40.151 40.915 40.435 39.769 16 New Zealand/dollar 102.23 97.337 86.848 83.771 82.331 82.644 82.355 83.104 82.784 81.399 17 Norway/krone 19.747 20.261 17.459 16.387 16.177 16.779 16.897 17.194 17.302 17.058 18 Portugal/escudo 2.0437 1.9980 1.6275 1.5429 1.4999 1.5268 1.5458 1.5534 1.5304 1.5039 19 South Africa/rand 118.72 128.54 114.77 108.46 105.27 105.56 104.61 103.82 103.10 103.46 20 Spain/peseta 1.4896 1.3958 1.0869 1.0248 .99864 1.0407 1.0416 1.0483 1.0313 1.0167 21 Sri Lanka/rupee 6.4226 6.1947 5.2928 5.3491 5.1932 5.0056 4.8372 4.8020 4.9362 4.9436 22 Sweden/krona 23.323 23.647 19.860 19.293 18.870 18.435 18.023 18.217 18.049 17.792 23 Switzerland/franc 60.121 59.697 51.025 47.667 46.091 49.511 53.080 56.000 55.098 54.224 24 United Kingdom/pound 212.24 232.58 202.43 187.37 182.03 181.46 184.07 190.25 190.33 188.60 MEMO: 25 United States/dollar1 88.09 87.39 102.94 109.87 112.29 107.98 106.34 104.53 105.21 106.96 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 when more IPCs Individuals, partnerships, and corporations than half of figures in that column are changed.) REITs Real estate investment trusts * Amounts insignificant in terms of the last decimal place RPs Repurchase agreements shown in the table (for example, less than 500,000 when SMSAs Standard metropolitan statistical areas the smallest unit given is millions) Cell not applicable General Information Minus signs are used to indicate (Da 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 All 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 A72 Commercial bank assets and liabilities, June 30, 1981 October 1981 A74 Commercial bank assets and liabilities, September 30, 1981 January 1982 A70 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Federal Reserve Board of Governors PAUL A. VOLCKER, Chairman HENRY C. WALLICH 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 JARED J. ENZLER, Senior Deputy Associate Director MICHAEL E. BLEIER, Assistant General Counsel DONALD L. KOHN, Senior Deputy Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel ELEANOR J. STOCKWELL, Senior Deputy Associate Director J. CORTLAND G. PERET, Deputy Associate Director HELMUT F. WENDEL, Deputy Associate Director OFFICE OF THE SECRETARY MARTHA BETHEA, Assistant Director JOE M. CLEAVER, Assistant Director WILLIAM W. WILES, Secretary ROBERT M. FISHER, Assistant Director BARBARA R. LOWREY, Associate Secretary DAVID E. LINDSEY, Assistant Director JAMES MCAFEE, Associate Secretary LAWRENCE SLIFMAN, Assistant Director THEODORE E. DOWNING, JR., Assistant Secretary FREDERICK M. STRUBLE, Assistant Director STEPHEN P. TAYLOR, Assistant Director PETER A. TINSLEY, 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

A71 and Official Staff NANCY H. TEETERS LYLE E. GRAMLEY EMMETT J. RICE OFFICE OF OFFICE OF STAFF DIRECTOR FOR STAFF DIRECTOR FOR MANAGEMENT FEDERAL RESERVE BANK ACTIVITIES JOHN M. DENKLER, Staff Director THEODORE E. ALLISON, Staff Director EDWARD T. MULRENIN, Assistant Staff Director JOSEPH W. DANIELS, SR., Director of Equal Employment Opportunity DIVISION OF FEDERAL RESERVE BANK OPERATIONS DIVISION OF DATA PROCESSING CLYDE H. FARNSWORTH, JR., Director LORIN S. MEEDER, Associate Director CHARLES L. HAMPTON, Director WALTER ALTHAUSEN, Assistant Director BRUCE M. BEARDSLEY, Deputy Director CHARLES W. BENNETT, Assistant Director ULYESS D. BLACK, Associate Director RICHARD B. GREEN, Assistant Director GLENN L. CUMMINS, Assistant Director EARL G. HAMILTON, Assistant Director NEAL H. HILLERMAN, Assistant Director ELLIOTT C. MCENTEE, Assistant Director C. WILLIAM SCHLEICHER, JR., Assistant Director DAVID L. ROBINSON, Assistant Director ROBERT J. ZEMEL, Assistant Director P.D. RING, Adviser tHowARD 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 New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Bulletin • February 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 DONALD C. PLATTEN, Second District, President ROBERT M. SURDAM, Seventh District, Vice President WILLIAM S. EDGERLY, First District RONALD TERRY, Eighth District JOHN H. WALTHER, Third District CLARENCE G. FRAME, Ninth District JOHN G. MCCOY, Fourth District GORDON E. WELLS, Tenth District VINCENT C. BURKE, JR., Fifth District T. C. FROST, JR., Eleventh District ROBERT STRICKLAND, Sixth District JOSEPH J. PINOLA, Twelfth 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

A73 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 Richard V. Warner John F. Breen Louisville 40232 James F. Thompson Donald L. Henry Memphis 38101 Donald B. Weis 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 A. J. Losee Joel L. Koonce, Jr. Houston 77001 Jerome L. Howard J. Z. Rowe San Antonio 78295 Pat Legan 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

A74 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

A75 STAFF STUDIES: Summaries Only Printed in the FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updated 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 PERFORMANCE AND CHARACTERISTICS OF EDGE CORPORAthree Handbooks plus substantial additional material.) TIONS, by James V. Houpt. Feb. 1981. 56 pp. $175.00 per year. BANKING STRUCTURE AND PERFORMANCE AT THE STATE Rates for subscribers outside the United States are as LEVEL DURING THE 1970s, by Stephen A. Rhoades. Mar. follows and include additional air mail costs: 1981. 26 pp. Federal Reserve Regulatory Service, $225.00 per year. FEDERAL RESERVE DECISIONS ON BANK MERGERS AND AC- Each Handbook, $75.00 per year. QUISITIONS DURING THE 1970s, by Stephen A. Rhoades. WELCOME TO THE FEDERAL RESERVE, December 1980. Aug. 1981. 16 pp. THE USE OF CONTINGENCIES AND COMMITMENTS BY COM- MERCIAL BANKS, by Benjamin Wolkowitz et al. Jan. 1982. 186 pp. CONSUMER EDUCATION PAMPHLETS MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE ON Short pamphlets suitable for classroom use. Multiple COMPETITION AND PERFORMANCE IN BANKING MARcopies available without charge. KETS, by Timothy J. Curry and John T. Rose. Jan. 1982. 9 pp. Alice in Debitland Consumer Handbook to Credit Protection Laws Dealing with Inflation: Obstacles and Opportunities REPRINTS The Equal Credit Opportunity Act and . . . Age Most of the articles reprinted do not exceed 12 pages. The Equal Credit Opportunity Act and . . . Credit Rights in Housing Revision of Bank Credit Series. 12/71. The Equal Credit Opportunity Act and . . . Doctors, Law- Rates on Consumer Installment Loans. 9/73. yers, Small Retailers, and Others Who May Provide Industrial Electric Power Use. 1/76. Incidental Credit Revised Series for Member Bank Deposits and Aggregate The Equal Credit Opportunity Act and . . . Women Reserves. 4/76. Fair Credit Billing Federal Reserve Operations in Payment Mechanisms: A Federal Reserve Glossary Summary. 6/76. Guide to Federal Reserve Regulations Perspectives on Personal Saving. 8/80. How to File A Consumer Credit Complaint The Impact of Rising Oil Prices on the Major Foreign If You Borrow To Buy Stock Industrial Countries. 10/80. If You Use A Credit Card Federal Reserve and the Payments System: Upgrading Elec- Series on the Structure of the Federal Reserve System tronic Capabilities for the 1980s. 2/81. The Board of Governors of the Federal Reserve System U.S. International Transactions in 1980. 4/81. The Federal Open Market Committee Survey of Finance Companies, 1980. 5/81. Federal Reserve Bank Board of Directors Bank Lending in Developing Countries. 9/81. Federal Reserve Banks Monetary Control Act of 1980 Truth in Leasing U.S. Currency What Truth in Lending Means to You Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Index to Statistical Tables References are to pages A3 through A68 although the prefix 'A" is omitted in this index ACCEPTANCES, bankers, 10, 25, 27 Demand deposits—Continued Agricultural loans, commercial banks, 18, 19, 20, 26 Ownership by individuals, partnerships, and Assets and liabilities (See also Foreigners) corporations, 24 Banks, by classes, 17, 18-21 Subject to reserve requirements, 14 Domestic finance companies, 39 Turnover, 12 Federal Reserve Banks, 11 Depository institutions Foreign banks, U.S. branches and agencies, 22 Reserve requirements, 8 Nonfinancial corporations, 38 Reserves, 3, 4, 5, 14 Savings institutions, 29 Deposits (See also specific types) Automobiles Banks, by classes, 3, 17, 18-21, 29 Consumer installment credit, 42, 43 Federal Reserve Banks, 4, 11 Production, 48, 49 Subject to reserve requirements, 14 Turnover, 12 Discount rates at Reserve Banks and at foreign central BANKERS balances, 17, 18-20 banks (See Interest rates) (See also Foreigners) Discounts and advances by Reserve Banks (See Loans) Banks for Cooperatives, 35 Dividends, corporate, 37 Bonds (See also U.S. government securities) New issues, 36 Yields, 3 EMPLOYMENT, 46, 47 Branch banks, 15, 21, 22, 56 Eurodollars, 27 Business activity, nonfinancial, 46 Business expenditures on new plant and equipment, 38 FARM mortgage loans, 41 Business loans (See Commercial and industrial loans) Federal agency obligations, 4, 10, 11, 12, 34 Federal credit agencies, 35 CAPACITY utilization, 46 Federal finance Capital accounts Debt subject to statutory limitation and types and Banks, by classes, 17 ownership of gross debt, 32 Federal Reserve Banks, 11 Receipts and outlays, 31 Central banks, 68 Treasury operating balance, 30 Certificates of deposit, 21, 27 Federal Financing Bank, 30, 35 Commercial and industrial loans Federal funds, 3, 6, 18, 19, 20, 27, 30 Commercial banks, 15, 17, 22, 26 Federal Home Loan Banks, 35 Weekly reporting banks, 18-22, 23 Federal Home Loan Mortgage Corporation, 35, 40, 41 Commercial banks Federal Housing Administration, 35, 40, 41 Assets and liabilities, 3, 15, 17, 18-21 Federal Intermediate Credit Banks, 35 Business loans, 26 Federal Land Banks, 35, 41 Commercial and industrial loans, 15, 17, 22, 23, 26 Federal National Mortgage Association, 35, 40, 41 Consumer loans held, by type, 42, 43 Federal Reserve Banks Loans sold outright, 21 Condition statement, 11 Nondeposit funds, 16 Discount rates (See Interest rates) Number, 17 U.S. government securities held, 4, 11, 12, 32, 33 Real estate mortgages held, by holder and property, 41 Federal Reserve credit, 4, 5, 11, 12 Commercial paper, 3, 25, 27, 39 Federal Reserve notes, 11 Condition statements (See Assets and liabilities) Federally sponsored credit agencies, 35 Construction, 46, 50 Finance companies Consumer installment credit, 42, 43 Assets and liabilities, 39 Consumer prices, 46, 51 Business credit, 39 Consumption expenditures, 52, 53 Loans, 18, 19, 20, 42, 43 Corporations Paper, 25, 27 Profits and their distribution, 37 Financial institutions Security issues, 36, 65 Loans to, 18, 19, 20 Cost of living (See Consumer prices) Selected assets and liabilities, 29 Credit unions, 29, 42, 43 Float, 4 Currency and coin, 5, 17 Flow of funds, 44, 45 Currency in circulation, 4, 13 Foreign banks, assets and liabilities of U.S. branches and Customer credit, stock market, 28 agencies, 22 Foreign currency operations, 11 Foreign deposits in U.S. banks, 4, 11, 18, 19, 20 DEBITS to deposit accounts, 12 Foreign exchange rates, 68 Debt (See specific types of debt or securities) Foreign trade, 55 Demand deposits Foreigners Adjusted, commercial banks, 12, 14 Claims on, 56, 58, 61, 62, 63, 67 Banks, by classes, 17, 18-21 Liabilities to, 21, 56-60, 64-66 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A78 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories Minneapolis Detroit Chicago Omaha' Kansas City \g> Louisville 't. Louis karlotte. Oklahoma City, ^mphisNashyil^ ILittle Rock gjrminghai \A tl®an ta > Dallas® Ml Paso' Houston* ,San Antonio January 1978 ALASKA HAWAII LEGEND Boundaries of Federal Reserve Districts Federal Reserve Bank Cities Boundaries of Federal Reserve Branch Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 Publications of Interest FEDERAL RESERVE REGULATORY SERVICE Federal Reserve To promote public understanding of its regulatory Regulatory Service functions, the Board publishes the Federal Reserve Volume I Regulatory Service, a two-volume looseleaf service containing all Board regulations and related statutes, interpretations, policy statements, rulings, and stalf opinions. For those with a more specialized interest in the Board's regulations, parts of this service are published separately as handbooks pertaining to monetary policy, securities credit, and consumer affairs. These publications are designed to help those who must frequently refer to the Board's regulatory materials. They are updated at least monthly, and each contains conversion tables, citation indexes, and a subject index. The Monetary Policy and Reserve Requirements Handbook contains Regulations A, D, and Q plus related materials. For convenient reference, it also contains the rules of the Depository Institutions Deregulation Committee. Federal Reserve The Securities Credit Transactions Handbook con- Regulatory Service tains Regulations G, T, U, and X, dealing with exten- Volume II sions of credit for the purchase of securities, together with all related statutes, Board interpretations, rulings, and staff opinions. Also included is the Board's list of OTC margin stocks. V ^ The Consumer and Community Affairs Handbook contains Regulations B, C, E, M, Z, AA, and BB and associated materials. For domestic subscribers, the annual rate is $175 for the Federal Reserve Regulatory Service and $60 for each handbook. For subscribers outside the United States, the price including additional air mail costs is $225 for the Service and $75 for each handbook. All subscription requests must be accompanied by a check or money order payable to Board of Governors of the Federal Reserve System. Orders should be addressed to Publications Services, Federal Reserve Board, 20th Street and Constitution Avenue, N.W., Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis