Federal Reserve Bulletin, 1982-06

VOLUME 68 • NUMBER 6 • JUNE 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. It is assisted by the Economic Editing Unit headed by Mendelle T. Berenson, the Graphic Communications Section under the direction of Peter G. Thomas, and Publications Services supervised by Helen L. Hulen. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Table of Contents 327 THE COMMERCIAL PAPER MARKET Board supports the bill's restriction on SINCE THE MID-SEVENTIES ownership interests in export trading companies to bank holding companies and Edge Because of increased activity by both new corporations, before the Subcommittee on and existing issuers, the volume of commer- Financial Institutions Supervision, Regulacial paper outstanding has more than tripled tion and Insurance of the House Committee since the mid-1970s. on Banking, Finance and Urban Affairs, May 19, 1982. 335 FINANCIAL DEVELOPMENTS OF BANK HOLDING COMPANIES IN 1981 353 Preston Martin, Vice Chairman, Board of Governors, presents the Board's views on The overall performance of bank holding the Capital Assistance Act of 1982 and on companies was reasonably good last year, the Deposit Insurance Flexibility Act, two in spite of the difficult and unsettled ecobills that address the current problems of nomic environment. the thrift industry, and says that the Board supports the objectives of these bills, before 341 TREAS UR Y AND FEDERAL RESERVE the Senate Committee on Banking, Hous- FOREIGN EXCHANGE OPERATIONS: ing, and Urban Affairs, May 26, 1982. INTERIM REPORT 356 J. Charles Partee, Member, Board of Gov- The U.S. dollar ended the February-April ernors, discusses the current financial conperiod higher on balance against all major dition of the nation's businesses and says currencies except the German mark, which that the Federal Reserve believes that fibenefited from a positive shift in market nancial conditions will improve gradually as sentiment and strengthened across the the economy begins to grow on a less board. inflationary path, before the Subcommittee on Domestic Monetary Policy of the House 345 STAFF STUDIES Committee on Banking, Finance and Urban Affairs, May 26, 1982. "The Community Reinvestment Act and Credit Allocation" reviews the legislative intent of the act and the relationship be- 361 ANNOUNCEMENTS tween congressional intent and credit allo- Adoption of criteria for determining whethcation as implemented by the Federal Reer debt securities issued by state member serve. banks and bank holding companies with a mandatory requirement for future conver- 347 INDUSTRIAL PRODUCTION sion to equity can qualify as primary capital in assessing capital adequacy. Output declined about 0.2 percent in May. Request for nominations to the Consumer 349 STATEMENTS TO CONGRESS Advisory Council. Henry C. Wallich, Member, Board of Gov- Amendments to the Board's margin regulaernors, testifies on a bill that would facili- tions that change the criteria for inclusion tate the establishment and operation of ex- on the Board's list of stocks traded over the port trading companies and says that the counter. (See Legal Developments.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Amendment to Regulation T to broaden the strength of other aggregates. The intermeettypes of collateral against which brokers ing range for the federal funds rate, which and dealers may borrow and lend securities. provides a mechanism for initiating further (See Legal Developments.) consultation of the Committee, was set at 12 to 16 percent. Proposed interpretations concerning credit scoring. 371 LEGAL DEVELOPMENTS Changes in Board staff. Amendments to Regulations D, H, G, T, Admission of two state banks to member- and U; bank holding company and bank ship in the Federal Reserve System. merger orders; and pending cases. 364 RECORD OF POLICY ACTIONS OF THE FEDERAL OPEN MARKET COMMITTEE A l FINANCIAL AND B USINESS STA TISTICS At its meeting on March 29-30, 1982, the A3 Domestic Financial Statistics Committee decided to seek behavior of A46 Domestic Nonfinancial Statistics reserve aggregates associated with growth A54 International Statistics of Ml and M2 from March to June at annual rates of about 3 percent and 8 percent A69 GUIDE TO TABULAR PRESENTATION, respectively. It was understood that most, STATISTICAL RELEASES, AND SPECIAL if not all, of the expansion in Ml over the TABLES period might well occur in April, and within limits, an April bulge in Ml alone should A70 BOARD OF GOVERNORS AND STAFF not be strongly resisted. In any event, it was agreed that deviations from those tar- A72 FEDERAL OPEN MARKET COMMITTEE gets should be evaluated in light of the AND STAFF; ADVISORY COUNCILS probability that over the period, M2 would be less affected than Ml by deposit shifts A73 FEDERAL RESERVE BANKS, related to the mid-April tax date and by BRANCHES, AND OFFICES changes in the relative importance of NOW accounts as a savings vehicle. Some short- A74 FEDERAL RESERVE BOARD fall in growth of Ml, consistent with pro- PUBLICATIONS gress toward the upper part of the range for the year as a whole, would be acceptable in A79 INDEX TO STATISTICAL TABLES the context of appreciably reduced pressures in the money market and relative A8l MAP OF FEDERAL RESERVE SYSTEM Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Commercial Paper Market since the Mid-Seventies This article was prepared by Evelyn M. Hurley, cial distress of the postwar era during this period. of the Capital Markets Section of the Board's In spite of these difficulties, the paper market has Division of Research and Statistics. functioned smoothly. In 1970 and 1974, also years of weak economic activity and high inter- Over the past decade more and more corpora- est rates, the flow of credit through the commertions have turned to the commercial paper mar- cial paper market was disrupted for many lowerket to obtain short-term credit. About 500 new rated companies by the highly publicized companies have begun to issue commercial pa- difficulties of a few issuers. Apparently, in the per since 1974, bringing the total number of current period, rating agencies and dealers alike issuers to 1,200. Many of the new entrants are are maintaining close surveillance of the credindustrial concerns—mostly of medium size— itworthiness of individual issuers, and market that have found it advantageous to borrow participants thus have become more efficient in through paper backed by letters of credit. Anoth- identifying problem firms at a stage when such er important development since the mid-1970s firms can withdraw from the paper market in an has been the appearance of foreign issuers, orderly fashion. In addition, mechanisms to supwhich previously had been virtually unknown in port the market in the form of bank lines and the commercial paper market; several tax-ex- letters of credit are more firmly established now empt entities also have issued paper in the last than in the early and mid-1970s. few years. As a consequence of increased activity by both new and previous issuers, the total 1. Commercial paper outstanding volume of paper outstanding has more than tri- Seasonally adjusted, in billions of dollars except as noted pled since the mid-1970s to slightly more than $170 billion (table 1 and chart 1). Dec. 31, Apr. 30, Percent Type 1974 1982 increase Purchases by money market mutual funds Total1 50.0 171.4 242.8 have facilitated this expansion, particularly over the past two years. Since the late 1970s money Financial firms 36.5 114.0 212.3 Dealer-placed 4.6 32.8 613.0 funds have expanded tremendously as the public Bank-related 1.8 8.3 361.1 Other 2.7 24.6 811.1 has shifted funds out of deposits with regulated Directly placed 32.0 81.2 153.8 Bank-related 6.5 29.0 346.2 rates into short-term assets paying market yields. Other 25.5 52.2 104.7 Other investors in commercial paper are bank Nonfinancial firms 13.5 57.4 325.2 trust departments and, in much smaller amounts, life insurance companies, pension funds, and 1. Components may not add to totals because of rounding. nonfinancial corporations. Individuals buying on their own account are thought to play only a This article discusses current operational asminor role. pects of the commercial paper market, highlight- Like most financial markets, the commercial ing changes since the mid-1970s. For further paper market has experienced a great deal of technical details on both the operation of the short-run variability in both interest rates and market and its history through the mid-1970s, see issuance over the past two or three years (chart "The Commercial Paper Market," in the FEDER- 2). Moreover, business firms in the aggregate AL RESERVE BULLETIN, vol. 63 (June 1977), have experienced some of the most severe finan- pages 525-36. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 Federal Reserve Bulletin • June 1982 1. Commercial paper outstanding this scale, firms find that reductions in the cost of borrowing, including the elimination of dealers' fees, justify the expense of setting up a marketing department and maintaining relationships with investors, which may involve the issuance of paper to meet investors' needs even when the funds are not required. Direct placers also gain some flexibility in adjusting interest rates and maturities. Finance companies that are direct issuers sometimes use the master note agreement, an arrangement whereby notes are sold to large, steady suppliers of funds. Under these agreements, the investor—usually a bank trust department—makes daily purchases of commercial paper, payable on demand, up to some predetermined amount. Each day the trust de- ISSUERS partment tells the issuer the amount of paper it will take under the master note. Although the The companies issuing commercial paper tend to amount outstanding may fluctuate from day to be financially strong, highly rated firms. They day, interest is usually payable on the average usually arrange forms of indirect assurance, such daily balance for the month at the 180-day comas backing by bank lines and letters of credit, mercial paper rate. Over the past five years, the that the debt will be repaid at maturity. These amount of paper placed through master notes has firms have found the commercial paper market to dropped from about 20 percent to 12 percent of be a relatively convenient, inexpensive, and flex- all paper placed directly by finance companies, ible source of short-term financing. This market largely because some of the companies active in has proved especially attractive in recent years, issuing master notes have experienced financial when the long-term debt market often has been difficulties, necessitating a reduction in their unattractive. issuance or even their withdrawal from the market. Direct Issuers 2. Business-cycle comparisons of commercial paper outstanding Until recently, most commercial paper was sold directly to investors by the issuing firm; but directly issued paper, though growing in dollar volume, has been declining in relative importance for several years (table 2 and chart 1). For the most part, direct placers are large finance companies and medium- to large-sized bank holding companies that are highly rated and need large amounts of short-term funds on a continuous basis. About 60 such issuers are rated by Moody's Investors Service. Borrowing must be sizable to justify the substantial fixed costs of distributing paper without dealer assistance. As a result, issuers seldom find it economical to place paper directly unless the average monthly Peaks and troughs are those established by the National Bureau of amount issued exceeds $1 billion. Operating on Economic Research, Inc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Commercial Paper Market since the Mid-Seventies 329 2. Directly placed commercial paper outstanding, issuers find it advantageous to engage the serby type vices of dealers rather than to place their paper Seasonally adjusted, in billions of dollars except as noted directly. The issuers may not be nationally known, for one thing, or their short-term financ- Directly placed as ing needs may not be large or regular. Under End of Total Total Bank- percent of period com p m ap e e r r c ial d p i l r a e c c e t d ly 1 Nonbank related com t m ot e a r l cial these circumstances, the issuer generally will find that it cannot justify the expense of selling paper directly, and it may in any event prefer to rely on 1970 33.4 20.5 18.5 2.0 61.4 1971 32.4 20.7 19.2 1.4 63.9 the dealer's contacts to market the paper. 1972 35.1 22.2 20.8 1.4 63.2 Of the issuers in the dealer market, most are 1973 41.6 27.3 24.4 2.9 65.6 1974 50.0 32.0 25.5 6.5 64.0 nonfinancial concerns—principally industrial 1975 48.4 31.4 24.5 6.9 64.9 companies, public utilities, and foreign nonfinan- 1976 52.9 32.6 26.6 6.0 61.6 cial entities. Nonfinancial commercial paper now 1977 65.1 40.6 33.5 7.1 62.4 1978 83.4 51.6 39.3 12.3 61.9 accounts for nearly two-thirds of all dealer- 1979 112.8 64.8 47.2 17.6 57.4 placed paper. As interest rates in bond markets 1980 124.5 67.9 45.5 22.4 54.5 have remained both high and variable, in recent 1981 165.5 81.7 54.7 26.9 49.4 1982 years many of these firms have avoided issuance Jan 165.1 80.3 51.8 28.6 48.6 Feb. ... 164.7 79.1 51.9 27.2 48.0 of long-term debt in significant volume; de- Mar. ... 166.3 77.9 50.7 27.2 46.8 Apr. ... 171.4 81.2 52.2 29.0 47.4 pressed stock prices have also discouraged equity financing lately. In this environment, commer- 1. Components may not add to totals because of rounding. cial paper has offered a convenient source of "bridge financing" for firms awaiting an im- Dealer-Placed Issues provement in conditions of longer-term markets; and because that improvement has failed to materialize, corporations have rolled over paper As of the end of April 1982 more than half of the as it has matured. commercial paper outstanding was placed through dealers (table 3). This proportion has One factor that has facilitated growth in paper risen steadily since the mid-1970s, when less issuance by nonfinancial firms has been the than two-fifths of the total was sold through increasing use of letters of credit and related dealers (chart 1). For a variety of reasons, most devices to assure payment at maturity. Letters of 3. Dealer-placed commercial paper outstanding, by type Seasonally adjusted, in billions of dollars except as noted Financial TToottaall ddeeaalleerr-- TToottaall TToottaall NNoonnffii-- ppllaacceedd aass ppeerrcceenntt EEnndd ooff ppeerriioodd ccoomm pp mm aapp ee ee rr rr cc iiaall pp dd ll ee aa aa cc ll ee ee dd rr-- 11 nnaanncciiaall Total N ba o n n k - r B e a la n t k ed - ccoomm ooff mm ttoo ee tt rr aa cc ll ii aall ppaappeerr 1970 33.4 12.9 7.5 5.4 5.1 .4 38.6 1971 32.4 11.8 6.6 5.2 4.7 .5 36.4 1972 35.1 12.9 7.3 5.6 4.3 1.2 36.8 1973 41.6 14.3 8.9 5.4 3.5 1.9 34.4 1974 50.0 18.0 13.5 4.6 2.7 1.8 36.0 1975 48.4 17.0 10.8 6.2 4.4 1.8 35.1 1976 52.9 20.4 13.2 7.2 5.3 1.9 38.6 1977 65.1 24.5 15.7 8.8 6.7 2.1 37.6 1978 83.4 31.8 19.6 12.2 8.7 3.5 38.1 1979 112.8 48.0 30.7 17.4 14.6 2.8 42.6 1980 124.5 56.7 36.9 19.8 16.2 3.6 45.5 1981 165.5 83.8 53.7 30.2 24.1 6.0 50.6 1982 Jan 165.1 84.8 55.4 29.3 22.8 6.5 51.4 Feb 164.7 85.6 55.5 30.1 23.2 6.9 52.0 Mar 166.3 88.4 56.8 31.6 24.1 7.4 53.2 Apr 171.4 90.3 57.4 32.8 24.6 8.3 52.7 1. Components may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 Federal Reserve Bulletin • June 1982 credit for this purpose appeared in the early but as short-term municipal debt. Reportedly, 1970s, but they declined to a low level after the about $ 1 '/2 billion of such paper is now outstandthree federal banking regulatory agencies placed ing. restrictions on their issuance in 1974. However, in late 1980, as interest rates rebounded in both Major financial issuers in the dealer market are the long- and the short-term debt markets, deal- finance companies (frequently subsidiaries of ers began to interest new issuers, particularly manufacturers and retailers), medium-sized bank lower-rated firms, in letters of credit. In such holding companies, and foreign banks; mortgage circumstances, rating agencies usually assign the companies and insurance companies issue smallrating of the bank or guarantor to the paper er amounts. Savings and loan associations also rather than the lower rating of the issuer. Thus began to apply for credit ratings in 1979 with the the issuer avoids payment of a very high premi- approval of the Federal Home Loan Bank Board. um in interest rates and in some instances gains The sale of paper was intended as a temporary entrance to the market that might otherwise have source of funds for these institutions until permabeen denied. For their part, banks earn addition- nent financing of mortgages became available. al fixed fees in issuing such backing. However, in view of the well-publicized earnings problems of thrift institutions, many associations Foreign Issuers. The entry of foreign issuers that obtained ratings encountered resistance by has been another significant development in the investors and never issued paper. As a result commercial paper market over the past decade. only about $100 million of such paper is currently These entities were only meagerly represented in outstanding. the mid-1970s, but 39 foreign nonfinancial firms and 51 foreign banks had commercial paper ratings by April 1982 (table 4). These foreign MARKET MECHANISM companies had an estimated $12 billion of commercial paper outstanding, of which foreign Nine major dealers provide distribution and inbanks accounted for a little less than 60 percent. termediary services for the commercial paper Foreign entities have entered the U.S. market to market. (This article does not discuss the several broaden their sources of funds and at times to banks that act as agents for the sale of paper for obtain a cheaper source of dollar financing. some companies. Litigation challenging the legality of this activity for banks is still pending.) Governmental Issuers. In recent years some Most dealers are located in New York City, and states and municipalities have also issued short- commercial paper is but one of the instruments in term obligations often referred to as tax-exempt which they deal. Their fees depend to some commercial paper. Because rates are comparable extent on how much paper an issuer sells over to those on other tax-exempt securities of the some interval, typically six months to one year, same maturity, rather than those of taxable secu- but the charge usually averages somewhat less rities, such paper obviously will appeal mainly to than V% percentage point at an annual rate. investors that otherwise would buy municipal Ordinarily, dealers buy paper from issuers and short-term notes. Also, in sale and distribution, try to resell the notes the same day. Any paper tax-exempt paper differs from the commercial not sold immediately is taken into inventory and paper of business firms. For example, the paper usually turned over in six to ten days. Invenis usually sold through the municipal depart- tories are financed either by overnight repurments rather than the commercial paper desks of chase agreements or by overnight loans from dealers, and the paper is often given a municipal banks. rating rather than a commercial paper rating. Unlike direct placers, dealers may not be able Accordingly, like other publishers of data on to accept all of the money that, on any given day, financial instruments, the Federal Reserve clas- investors wish to place in the obligations of a sifies this instrument not as commercial paper particular company, nor do they have direct Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Commercial Paper Market since the Mid-Seventies 331 control over maturities; they sell only the paper 4. Number of companies with selected commercial that they have purchased that day or the paper paper ratings, by industry, April 1982' from their inventory. (Direct placers often reduce rates to discourage investors, but, as noted earlier, they sometimes accommodate large orders from investors even when they do not need Public utilities all the funds.) To satisfy investors' demands, Financial dealers may relay to issuers any special orders or companies3 Bank holding requests they receive specifying the quantity and companies Real estate maturity of paper, but the issuer makes the final investment trusts decision on these matters and makes no commit- Insurance firms ... Transportation ment to issue regularly. Also, there are no estab- firms Leasing firms lished secondary markets for either dealer- Foreign banking institutions ... placed or directly placed paper. If an investor is Foreign nonbanks hard pressed, the dealer customarily will buy Ttl2 Total2 back the paper and hold it in inventory as a service to both the issuer and the investor. 1. Based on listings of Moody's Investors Service, Standard & Poor's Corporation, and Fitch Investors Service. Paper is rated Prime Among direct placers, finance companies re- 1 (P-l), Prime 2 (P-2), or Prime 3 (P-3) by Moody's; A-l +, A-l, A-2, or deem on a similar basis. A-3 by Standard & Poor's; F-l, F-2, or F-3 by Fitch. Each service gives the "1" rating to the highest-quality paper and the "3" to the lowest. The ratings most looked for by investors are the A-l or P-l ratings. 2. If a company is rated by Moody's, that service's rating is used Ratings for the total. If it is not rated by Moody's, then Standard & Poor's rating is used. If the company is rated only by Fitch, that service's rating is used. Five rating services currently evaluate commer- 3. Includes finance companies, saving and loan associations, and cial paper: Moody's Investors Service; Standard mortgage bankers. & Poor's Corporation; Fitch Investors Service; Poor's is readily accepted. Paper with an A-3 or Duff and Phelps, Inc.; and McCarthy, Crisanti, P-3 rating does sell occasionally, depending on Maffei, Inc. The first four charge a fee to the the general reputation of the issuer and the issuing company, while McCarthy charges the interest rate premium. investors that subscribe to its service rather than Commercial paper with a given rating will pay the issuer. Unlike those of the other four ser- a higher or a lower yield depending on the ratings vices, McCarthy's ratings reflect the overall assigned to the issuer's bonds; the higher the quality of a company's short-term debt rather rating, the lower the yield on commercial paper. than just its paper. As in the bond market, Paper backed by letters of credit of banks and in- Moody's and Standard & Poor's are the two surance companies or guaranteed by parent combiggest agencies. Moody's rates the paper of panies usually receives the rating of the bank or more than 900 issuers, and Standard & Poor's guarantor from the rating agencies. In general, rates the paper of more than 1,000 issuers. Most issuers of paper or of letters of credit, or the parof those rated by the other three rating services ent companies, have bonds outstanding that are are also rated by one or both of these two. Table rated minimum investment grade or better. 4 gives the ratings by industry of the 1,200 Since 1977, ratings have affected the net capiissuers that have commercial paper ratings. tal requirements of the dealer that handles such The classification systems used by the various paper as well as the acceptability of an offering. services tend to be less detailed than those used According to a ruling by the Securities and in bond ratings; the two major services use Exchange Commission, a dealer who takes into simple numerical schemes to distinguish three or inventory the paper of an issuer that does not four basic categories. Unrated or lower-rated have ratings from two rating services must propaper is not easily sold, and only the paper with tect its solvency by "writing down" the value of the highest ratings by Moody's or Standard & this paper by an amount that varies from 15 to 30 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 Federal Reserve Bulletin • June 1982 percent. In view of this requirement, most deal- 3. Spread in rates on commercial paper ers now require issuers to maintain two ratings. A larger proportion of the companies have the higher ratings in today's commercial paper market than in the mid-1970s, largely because of the more widespread use of letters of credit. According to Moody's Investors Service, barely half of the firms rated in February 1974 had the highest rating; in contrast, more than three-quarters of its clients enjoyed top ratings in December 1981 (table 5). Many issuers that were forced to leave the market in 1974 and to return to their banks 1974 1976 1978 1980 1982 for financing because of poor commercial paper Rate spread is the rate on medium-grade less the rate on high-grade ratings have not reentered the market. Instead, a commercial paper calculated from rates charged by two major dealers for dealer-placed 30- to 59-day paper; ratings for medium-grade, A-2 whole new crop of issuers has appeared with or P-2, and for high grade, A-l or P-l. higher ratings. which usually did not have letters of credit 5. Number of commercial paper issuers rated by Moody's Investors Service, selected dates backing the paper. Thus although the yield spread between paper issues of the strongest and Feb. 4, Dec. 1, the weakest quality has been wider in the past M, 1974 1981' two to three years than from 1975 to 1980, it has 344 700 never been so wide as in the 1973-75 recession 231 206 38 16 (chart 3). Total 613 922 While the expanded use of letters of credit is a 1. Excludes municipal commercial paper ratings. well-established fact, no comprehensive data exist on the amount of paper being supported by these arrangements. To some extent, this lack of New Issuers and Special Guarantees data reflects the proliferation of arrangements and Other Mechanisms between financial institutions and issuers. Traditionally, borrowers have attached to each com- The largest group of new issuers comprises rela- mercial paper note a letter of credit backing that tively small companies that have entered with particular obligation, the so-called documented backing for their paper from banks, insurance discount note; the letter assures the investor that companies, and parents. Most of the paper sup- the issuer of the letter of credit will pay the note ported by letters of credit is used by special- if the issuer of the paper cannot do so. Recently, purpose companies such as nuclear fuel compa- however, issuers of letters of credit have begun nies, by mortgage companies, and by other to provide a single, "master" letter of credit relatively weak companies that otherwise either stating the total amount of credit to be extended would be excluded from the market or would be on the notes of a given company; this obligation forced to pay high premiums. (Nuclear fuel com- is referred to on each note issued. panies are set up as subsidiaries of dealers, Some paper is also being supported by "irrevbanks, or electric and gas utilities for the sole ocable commitments to lend" on the part of the purpose of providing and financing nuclear fuel lending institution. Under this arrangement, the for the utilities.) The increased use of letters of bank agrees to lend the issuing company funds to credit thus has permitted lower-rated issuers to cover notes outstanding up to a certain amount, a maintain or gain access to the market at manage- somewhat less firm assurance of payment than is able costs of borrowing. Even companies with the letter of credit, which stipulates that funds paper rated A-2 or P-2 and with letters of credit will be paid directly to the note holders. The size pay a smaller premium on interest rates today of the loan, like that of any other loan, must than did the A-2 or P-2 issuers of the 1974 period, satisfy bank capital requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Commercial Paper Market since the Mid-Seventies 333 In addition to letters of credit, since 1977 INVESTORS banks have provided a means of financing for corporations that has proved both competitive to The tripling of commercial paper outstanding and a support mechanism for the commercial since the mid-seventies has been facilitated by a paper market. This is the "below prime" loan of sizable shift in investor preferences toward very short-term maturity now offered by many short-term assets paying market rates of interest. banks. Basically, for a short period of time—as In an uncertain financial climate investors have short as overnight—the bank provides funds at a sought to minimize the risk to capital value by rate that is Vs to V2 of a percentage point above buying instruments with shorter maturities; this what the bank pays for the funds. That margin objective has been satisfied increasingly outside depends on the individual bank and on the credit- depository institutions because of the rise in worthiness of the borrower. market yields relative to rates permitted on many During brief periods, when the rates on com- deposit categories. The dramatic growth in monmercial paper are rising more rapidly than the ey market mutual funds is perhaps the most rates charged by banks, issuers will use below- obvious manifestation of these developments, prime loans rather than pay the rates in the •/••int.- • commercial paper market. For the most part, 6. Number, total assets, and commercial paper however, these below-prime loans have provided holdings of money market mutual funds low-priced funds to companies that have faced Not seasonally adjusted, in billions of dollars except as noted temporary impediments to raising funds in the Commercial commercial paper market. The important users End Number Total Commercial paper as perof period of funds assets paper cent of total of these loans have been companies issuing pa- assets per directly. If these companies fail to meet their 1977 .. 50 3.9 .9 23.1 goals on a particular day, they use the below- 1978 .. 61 10.9 2.9 26.6 1979 .. 76 45.2 14.5 32.1 prime facilities overnight. In other instances, to 1980 .. 96 74.4 25.0 33.6 avoid paying a premium in the commercial paper 1981 market for selling a large amount of paper in one Jan. 98 85.0 29.6 34.8 Feb. 103 96.7 32.0 33.1 or two days, a large issuer will use the bank Mar. 107 111.5 36.0 32.3 facility and spread the sale of the paper over a Apr. 116 118.4 39.9 33.7 May 117 117.9 39.2 33.2 longer period of time. For further discussion of June 121 126.5 45.5 36.0 July 131 139.4 50.2 36.0 below-prime lending, see "Changes in Bank Aug. 134 149.4 52.6 35.2 Lending Practices, 1979-81," FEDERAL RE- O Se c p t. t . 1 14 4 5 7 1 1 6 6 0 9 . . 8 6 6 5 0 8 . . 0 4 3 3 6 5 . . 3 4 SERVE BULLETIN, volume 67 (September 1981), N De o c v . . 1 15 5 7 9 1 18 8 1 1 . . 6 9 6 5 1 6 . . 3 8 3 3 1 3. . 8 2 pages 671-86. 1982 In summary, the banking system provides the Jan. 163 187.2 59.2 31.6 Feb. 175 186.2 56.0 30.1 commercial paper market with several means of Mar. 182 191.0 57.6 30.2 safeguarding issuers and investors alike. First, it Apr. 198 192.0 61.4 32.0 offers lines of credit to commercial paper issuers to back their paper; funds made available under In December 1977 there were 50 money marthese lines have enabled companies experiencing ket fufids, with total assets of about $4 billion difficulties to withdraw from the market, thereby (table 6). By April 1982 the number had grown to preventing disruptions in financial markets. Sec- almost 200 funds, with assets of nearly $200 ond, it extends letters of credit as backing for the billion. Over that same period the money market paper of lesser-known or less creditworthy com- funds increased their holdings of commercial panies, allowing them access to the commercial paper from less than $1 billion to more than $60 paper market and at a higher rating than they billion. Today those funds hold more than onewould otherwise have. Third, by providing the third of all paper outstanding, and since the end below-prime loan, it helps stabilize interest rates of 1978 their paper holdings have accounted for and thus prevents a flood of demands for funds in two-thirds of the growth in the commercial paper the market on a given day. market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 Federal Reserve Bulletin • June 1982 Although the funds hold a sizable amount of per should be sold only to sophisticated invespaper, they are very quality conscious and usual- tors), but they probably have acquired larger ly will buy only A-l- or P-l-rated paper. They amounts of directly placed paper over the last usually also require issuers of commercial paper decade than in earlier periods. Whereas dealers, to have bond ratings of at least A. These funds and most companies that issue directly, offer are important investors in the markets for both paper in minimum denominations of $50,000 or dealer-placed and directly placed paper. Recent- $100,000, a handful of finance companies and ly, however, they have tended to allocate a some smaller regional bank holding companies greater portion of their assets to Treasury bills have minimums of $25,000. Still other direct while reducing the share devoted to commercial placers, although they have posted minimums of paper. Nevertheless, in the aggregate, commer- $50,000 or $100,000, accommodate an order of cial paper still constitutes by far the largest single any size given by a large money market bank in category of money market fund assets. order to maintain good working relationships Other investors include bank trust depart- with that institution. ments and, to a much lesser extent, life insurance companies, pension funds, nonprofit organizations, and nonfinancial corporations. Accurate CONCLUSION statistics on the amounts of commercial paper held are available for a few groups of investors. The commercial paper market has matured into a Corporations engaged in manufacturing, mining, significant source of financing for more than and wholesale and retail trade held about $11 1,200 firms, financial and nonfinancial, domestic billion at the end of 1981. Moreover, life insur- and foreign. Its role has been enhanced in the last ance companies accounted for approximately few years by the need of issuers for short-term $15 billion at that time. Although over the past financing at a time when many firms have considdecade large weekly reporting banks have made ered long-term financing too costly. substantial purchases for their own trust depart- Because a sizable portion of the recent growth ments or for customers, they continue to pur- in the commercial paper market has been linked chase little for their own accounts. At year-end to sparse long-term debt issuance, the volume of 1981, it was estimated that they held less than paper in this short-term market will certainly be $50 million of paper. No quantitative information affected by long-term financing conditions: if on commercial paper held by other investors is conditions in the long-term market show marked available. improvement, many firms will fund this short- Individuals do not hold sizable amounts of term debt. Nevertheless, the commercial paper commercial paper (indeed, the Securities and market is certain to continue to play a significant Exchange Commission emphasizes that such pa- role in corporate financing strategies. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

335 Financial Developments of Bank Holding Companies in 1981 This article was prepared by Anthony G. Cornyn cial banking institutions. This article presents and Thomas L. Zearley of the Board's Division data for the entire sample of 391 companies of Banking Supervision and Regulation. (universe) and for three size classes or peer groups: 51 holding companies with more than $5 The year 1981 in many respects proved to be a billion in assets; 135 with $1 billion to $5 billion in difficult one for the nation's largest bank holding assets; and 205 with $100 million to $1 billion in companies. Economic conditions softened not assets. only in the United States but throughout the world, interest rates remained both high and volatile, and competition for financial services EARNINGS AND PROFITABILITY intensified. The transition toward full deregulation of interest rate ceilings on deposits, called Earnings of bank holding companies rose moderfor by the Depository Institutions Deregulation ately in 1981. Net income before securities transand Monetary Control Act of 1980, added to the actions of the 391-company universe expanded cost pressures on the banking industry. Yet, 8.8 percent last year to $9.2 billion (table 1). This despite the difficult and unsettled economic envi- expansion was significantly smaller than the inronment, the overall performance of bank hold- crease of 20.1 percent posted in 1979, but only ing companies was reasonably good. Earnings slightly lower than the 9.9 percent experienced in continued to expand at a moderate pace, profit 1980. Substantial increases in both gross interest margins remained essentially unchanged from income and noninterest income were among the the satisfactory levels of 1980, and capital ratios, which had been trending down for well over a 1. Selected income and expense items, decade, stabilized. Signs of deterioration in asset 1980 and 19811 quality, however, were evident in the rising Amount incidence of corporate bankruptcies, the surge in (millions of dollars) CChhaannggee downgradings of corporate debt issues by rating IItteemm ((ppeerrcceenntt)) 1980 1981 agencies, the rise in mortgage delinquency rates, and the higher levels of nonperforming assets Gross interest income (FTE) 133,587 175,607 31.5 Gross interest expense 93,956 132,061 40.6 reported by bank holding companies. Net interest income (FTE) 39,631 43,546 9.9 This review of major financial developments of Noninterest income 11,851 14,766 24.6 bank holding companies during 1981 is based on Noninterest expense 31,765 36,975 16.4 Loan-loss provisions 3,391 3,841 13.2 data from the bank holding company financial Income before taxes (FTE) 16,325 17,496 7.2 Tax equivalent adjustment 4,753 5,711 20.1 supplement (form FR Y-9). The sample consists Income before taxes 11,572 11,785 1.8 of 391 bank holding companies that had more Taxes 3,101 2,571 (17.1) than $100 million in fully consolidated assets at Net income before securities transactions 8,471 9,214 8.8 year-end 1981.1 These companies controlled ag- Securities gains (losses)2 (344) (439) gregate assets of $1,457.9 billion, or about 72 Net income 8,127 8,776 8.0 percent of the assets controlled by U.S. commer- 1. Universe of 391 bank holding companies. Details may not add to totals because of rounding. 2. Includes extraordinary items. 1. As of December 31, 1981, 3,644 registered bank holding companies were in existence. FTE Fully taxable equivalent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 Federal Reserve Bulletin • June 1982 favorable factors affecting 1981 earnings. Lower 3. Selected income statement items, 1979-81' income tax payments also had a positive impact Percent of average assets on earnings. However, these developments were Item 1979 1980 1981 partially offset by a sharp rise in gross interest expense and by higher overhead and loan-loss Gross interest income (FTE) 9.31 10.55 12.60 Gross interest expense 6.06 7.42 9.47 provisions. Net interest income (FTE) 3.24 3.13 3.12 All three peer groups increased their earnings Noninterest income .81 .93 1.05 last year (table 2)—the medium-size banking Noninterest expense 2.42 2.50 2.65 Loan-loss provisions .25 .26 .27 organizations registered the largest gain (10.5 Income before taxes (FTE) 1.38 1.28 1.25 Tax equivalent adjustment .42 .37 .40 percent). Income before taxes .96 .91 .85 Taxes .27 .24 .18 2. Net operating income, 1978-811 Net income before securities transactions .68 .66 .66 Percentage change Securities gains (losses)2 (.01) (.02) (.03) Net income .66 .64 .62 Size class 1978-79 1979-80 1980-81 1. Universe of 391 bank holding companies. Details may not add to Universe 20.1 9.9 8.8 $100 million to $1 billion 18.2 2.2 7.9 totals because of rounding. $1 billion to $5 billion 23.0 15.7 10.5 2. Includes extraordinary items. $5 billion or more 19.2 8.6 8.2 FTE Fully taxable equivalent. 1. Before securities transactions and extraordinary items. substantial gains from tax-free "stock-for-debt Gross interest income (on a fully taxable swaps." equivalent basis) increased $42.0 billion in 1981, On the other side of the ledger, noninterest up 31.5 percent over the 1980 level (table 1). expenses (excluding loan-loss provisions) in- Gross interest expense, on the other hand, increased $5.2 billion in 1981, or 16.4 percent over creased $38.1 billion. As a result, net interest the level in 1980. Salaries and employee benefits income—a crucial factor in bank earnings perand occupancy and equipment expense were formance—rose $3.9 billion, or 9.9 percent largely responsible for the increase. above the level for 1980. Provisions for loan losses for the universe Net interest margins for the universe equaled totaled $3.8 billion, up 13.2 percent from the $3.4 3.12 percent last year, just 1 basis point below billion in 1980. Despite heightened concern about the 3.13 percent recorded in 1980 (tables 3 and credit quality, this rate of increase in provisions 4).2 Increased competition in loan pricing and a closely tracked the growth in loans. And meacontinued shift toward the use of higher-cost sured as a percent of average assets, provisions funds to support assets were among the influedged up only slightly, to 0.27 percent from 0.26 ences that kept pressure on bank holding compapercent in 1980. The increases were more prony margins in 1981. nounced among bank holding companies in the Noninterest income was an important source large- and medium-size groups: loan-loss proviof growth in earnings. Fueled by strong gains in sions for 1981 rose an average of 15.2 percent for trading account profits, service charges, comthe large companies and 13.6 percent for the missions, and fee income, noninterest income for the universe rose 24.6 percent last year to $14.8 billion. All three peer groups reported enlarged 4. Net interest margins, 1980 and 19811 noninterest earnings, but especially strong gains were posted by the large companies, many of Percent which experienced significant increases in bond SSiizzee ccllaassss 1980 1981 ((bbaa CC ssii hh ss aa pp nn oo gg ii ee nn ttss)) trading profits and foreign exchange revenues. Several large banking institutions also booked Universe 3333....11113333 3333....11112222 ----1111 $100 million to $1 billion 4444....44443333 4444....44444444 1111 $1 billion to $5 billion 4444....11114444 4444....22220000 6666 $5 billion or more 2222....77773333 2222....77770000 ----3333 2. Net interest margin is equal to taxable equivalent net 1. Taxable equivalent net interest income divided by average interest income divided by average assets for the year. assets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments of Bank Holding Companies in 1981 337 5. Net return on average assets, 1979-811 in 1981 (table 6). Profitability measures for the Percent three peer groups showed similar patterns of stability. Return on average assets remained Size class 1979 1980 1981 constant between 1980 and 1981 for the small and Universe .68 .66 .66 large companies but declined slightly for the $100 million to $1 billion .86 .80 .80 $1 billion to $5 billion .83 .87 .86 medium-size institutions. While return on equity $5 billion or more .62 .59 .59 of all three peer groups declined modestly in 1. Net income before securities transactions and extraordinary 1981, the reductions were less than Vi of a items divided by average assets. percentage point. medium-size institutions, while they declined 8.5 percent for the small companies. BALANCE-SHEET CHANGES Income before taxes on a fully taxable-equivalent basis (designed to equate nontaxable and The pace of asset expansion continued to slow taxable sources of income) for the universe was for the second straight year. This slowing, attrib- $17.5 billion, up 7.2 percent from $16.3 billion in utable primarily to bank holding companies in 1980. Without that adjustment, before-tax in- the large-size class, reflected the continued slugcome for 1981 equaled $11.8 billion, an increase gishness of economic activity and monetary reof only 1.8 percent over $11.6 billion for the straint. Aggregate consolidated assets of the 391 previous year. companies expanded 9.8 percent in 1981, com- Although before-tax income increased slightly pared with growth rates of 10.4 percent in 1980 in 1981, provisions for income taxes fell sharply. and 13.8 percent in 1979. Among the three peer For the universe of companies, total income groups, the aggregate assets of companies in the taxes were $2.6 billion in 1981, or 17.1 percent large-size class grew only 8.9 percent in 1981, less than in the previous year. Generally, reduc- down from 10.4 percent in 1980. In contrast, the tions in taxes last year were most pronounced at aggregate assets of companies in the mediumthe small-size companies. size class rose 13.0 percent in 1981, up from the The decline in total income taxes provided a 10.8 percent increase the year before, while the measurable boost to the earnings of bank holding assets of companies in the small-size class rose companies. Net income before securities trans- 8.9 percent, compared with the 8.6 percent pace actions was $9.2 billion in 1981, 8.8 percent of 1980. higher than in 1980. After deducting securities Responding to the high and volatile interest losses and extraordinary items of $439 million, rates of 1981, bank holding companies continued net income equaled $8.8 billion, up 8.0 percent to realign the composition of their balance sheets from $8.1 billion in 1980. to increase the importance of assets and liabil- The return on average assets—a key measure ities with shorter maturities and greater interestof profitability—was 0.66 percent for the uni- rate sensitivity. On the asset side, holdings of verse in 1981, the same as a year earlier (table 5). non-interest-bearing cash balances were pared, Return on average equity, however, decreased both in absolute terms and relative to total asslightly, from 14.5 percent in 1980 to 14.0 percent sets, reflecting the more intensive use of casheconomizing techniques throughout the industry. The adoption on October 1, 1981, of same-day 6. Net return on average equity, 1979-81' settlement procedures by participants in CHIPS, Percent the Clearing House Interbank Payments System, Size class 1979 1980 1981 also contributed significantly to the reduction in cash balances. At year-end 1981, non-interest- Universe 14.7 14.5 14.0 $100 million to $1 billion 13.8 12.7 12.5 bearing cash balances of the 391 companies $1 billion to $5 billion 14.0 14.5 14.3 amounted to 7.9 percent of aggregate assets, $5 billion or more 15.1 14.6 14.1 down from 10.7 percent a year earlier and 11.8 1. Net income before securities transactions and extraordinary percent at the end of 1979 (table 7). items divided by average equity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 Federal Reserve Bulletin • June 1982 7. Selected balance sheet items, year-end 1980 and 1981 Percent of total assets Size class $5 billion or $1 billion— $100 million- IItteemm more $5 billion $1 billion Universe 1980 1981 1980 1981 1980 1981 1980 1981 Cash (excluding interest-bearing deposits) 10.6 7.2 11.4 10.3 9.1 8.4 10.7 7.9 Money market investments' 14.7 15.1 9.8 12.9 8.0 9.6 13.3 14.3 Investment securities 9.5 8.6 20.4 18.8 25.1 24.4 12.7 11.7 Loans and leases, net 57.3 60.2 53.2 52.4 53.2 52.6 56.2 58.1 Premises and equipment 1.0 1.1 1.9 1.9 2.2 2.3 1.3 1.4 Other assets 6.9 7.8 3.3 3.7 2.3 2.7 5.8 6.6 Total assets 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Demand deposits 18.5 14.5 28.2 24.3 27.0 23.3 21.0 17.1 Time deposits in denominations of $100,000 or more ... 13.2 15.0 13.4 13.6 13.8 14.3 13.3 14.7 Other time deposits 6.7 7.5 18.4 20.2 24.2 26.4 10.2 11.3 Savings deposits 5.7 5.6 14.1 13.8 17.2 16.9 8.2 8.0 Foreign deposits 28.0 27.4 2.8 3.3 .1 .1 21.1 20.6 Total deposits 72.1 70.0 77.0 75.2 82.3 81.0 73.8 71.7 Short-term borrowings2 14.4 15.3 12.3 14.0 7.9 9.1 13.6 14.7 Long-term borrowings 2.2 2.5 1.8 1.7 1.7 1.7 2.1 2.3 Other liabilities 7.1 7.9 2.8 3.1 1.6 1.7 5.8 6.5 Stockholders' equity3 4.1 4.2 6.1 6.0 6.5 6.5 4.7 4.8 Total liabilities and stockholders' equity 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1. Includes interest-bearing cash balances with other depository sold under agreements to repurchase, and other borrowings with an institutions, trading account securities, and federal funds sold and original maturity of one year or less. securities purchased under agreements to resell. 3. Includes minority interest in the equity accounts of consolidated 2. Includes commercial paper, federal funds purchased, securities subsidiaries. Underscoring the trend toward shorter asset Total loans and leases outstanding, net of maturities, the percentage of assets allocated to reserves for possible losses, grew 13.6 percent in money market instruments rose to 14.3 percent 1981, somewhat faster than in the previous year. at year-end 1981, compared with 13.3 percent at The universe reported net loans and leases outthe end of 1980. (Money market investments are standing of $846 billion as of December 31, 1981, defined to include interest-bearing cash balances compared with $745 billion at the end of 1980. with other depository institutions, trading ac- The pickup in loan growth reflected in large part count securities, federal funds sold, and securi- the increased demand for bank credit from comties purchased under agreements to resell.) As mercial and industrial borrowers, many of whom shown in table 7, the large bank holding compa- continued to defer longer-term financing because nies continued to hold a significantly greater of generally unfavorable conditions in the bond share of their assets in money market instru- and equity markets. By comparison, consumer ments than did either medium- or small-size and real estate loans and loans to financial insticompanies. tutions rose at a more moderate pace. Loans To accommodate the strong demand for bank made at foreign offices and at Edge and Agreeloans, bank holding companies reduced their ment subsidiaries increased 13.3 percent, or at holdings of investment securities relative to total roughly the same rate as loans made at domestic assets in 1981. Holdings of U.S. government offices. Direct-lease-financing receivables of the obligations and of other bonds, notes, and deben- 391 companies increased 11.2 percent in 1981 tures were scaled back, and the rate of acquisi- and stood at $19.7 billion at year-end, up from tion of municipal securities slowed considerably. $17.7 billion as of December 31, 1980. The com- For the year, total investment securities held by position of the loan portfolios of the three size the 391 companies increased only 1.1 percent, classes and the universe is shown in table 8. and by year-end 1981 they amounted to 11.7 On the liability side, growth of deposits was percent of assets, down from 12.7 percent at the unusually weak. Total deposits held by the 391 end of 1980. companies increased only 6.9 percent in 1981, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments of Bank Holding Companies in 1981 339 Composition of loan portfolios, year-end 1980 and 1981 Percent of gross loans and leases Size of class $5 billion or $1 billion— $100 million- Item more $5 billion Si billion Universe 1980 1981 1980 1981 1980 1981 1980 1981 Loans made at domestic offices Real estate loans 16.5 16.2 31.7 31.4 37.0 36.7 20.7 20.3 Loans to financial institutions 6.3 6.0 3.9 3.7 1.6 2.1 5.6 5.3 Commercial and industrial loans 27.0 28.6 31.7 32.5 29.9 31.9 28.1 29.5 Consumer loans 11.0 10.2 24.1 22.9 25.4 23.7 14.4 13.4 All other loans 4.7 5.0 4.1 4.3 4.9 4.5 4.6 4.8 Loans made at foreign offices and at Edge Act and Agreement subsidiaries 31.9 31.5 2.8 3.4 .1 .1 24.3 24.3 Lease financing receivables 2.6 2.5 1.7 1.7 1.1 1.0 2.3 2.3 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 and by year-end the ratio of total deposits to total ported 2.3 percent of total assets as of year-end, assets had fallen to 71.7 percent, down from 73.8 compared with 2.1 percent at the end of 1980. percent at the end of 1980. As shown in table 7, the contraction in demand deposits as a source of funds was particularly pronounced. The outflow of demand deposits was generally attributed to CAPITAL the introduction of negotiable order of withdrawal (NOW) accounts nationwide and to continued Bank holding companies, particularly the large competition from money market mutual funds. multinational institutions, have been under regu- In recent years, deposits have failed to keep latory and market pressures to address the longpace with assets, and consequently, nondeposit term decline in their capital ratios. Although borrowings have played an increasingly impor- some companies strengthened their capital positant role in the funding strategies of bank holding tions during the year, for the group as a whole companies. In 1981, dependence on short-term the trends in key indexes of capital strength were borrowings (federal funds purchased, commer- mixed. For example, as measured by the ratio of cial paper, and other borrowings with an original equity to total assets, capital ratios of bank maturity of one year or less) increased signifi- holding companies continued to increase for the cantly. Aggregate short-term borrowings of the second consecutive year. The composite ratio of 391 companies rose 18.5 percent during the year; equity to assets of the 391 companies stood at as of December 31, 1981, they equaled 14.7 4.77 percent at year-end, up from 4.68 percent at percent of total assets, compared with 13.6 per- the end of 1980 and well above the low of 4.61 cent a year earlier. As shown in table 7, reliance percent at the end of 1979. Against this favorable on short-term borrowings tends to be related to trend, some erosion developed in capital ratios asset size. On average, companies in the large- as measured by the ratio of equity capital to risk size class supported 15.3 percent of their assets assets (total assets less cash and U.S. governwith short-term borrowings, compared with 14.0 ment securities). For the universe, the composite percent in the medium-size class and 9.1 percent ratio of equity to risk assets declined to 6.22 in the small-size class. percent, compared with 6.35 percent at the end of 1980 (table 9). Along with the overall increase in short-term funding, medium- and long-term borrowings of Aggregate stockholders' equity of the 391 bank holding companies also increased during companies has grown relatively steadily, at an the year. The total of these types of borrowings annual rate of 11 to 12 percent in each of the last of the 391 companies at year-end 1981 was $33.1 four years. In 1981, it advanced 11.9 percent, billion, up $4.7 billion or 16.5 percent from the outpacing total assets, which rose 9.8 percent. end of the previous year. Such borrowings sup- This growth reflected a sizable increase in exter- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 Federal Reserve Bulletin • June 1982 9. Selected capital ratios, year-end 1979-81 Percent Equity to assets' Equity to risk assets2 SSiizzee ccllaassss 1979 1980 1981 1979 1980 1981 Universe 44..6611 44..6688 44..7777 66..2299 66..3355 66..2222 $100 million to $1 billion 66..4433 66..4499 66..5544 88..3322 88..5599 88..6688 $1 billion to $5 billion 66..0000 66..0077 66..0055 77..9900 88..1166 88..1144 $5 billion or more 44..0088 44..1133 44..2255 55..6633 55..6644 55..4488 1. Total stockholders' equity plus minority interest in consolidated subsidiaries divided by total assets less cash and due from depository subsidiaries divided by total assets. institutions, U.S. Treasury securities, and obligations of U.S. govern- 2. Total stockholders' equity plus minority interest in consolidated ment agencies and corporations. nal equity financing, which offset a slowing in the that nonperforming assets rose about 40 percent rate of internally generated funds. in 1981, reversing a downward trend over several Bank holding companies in total raised in years. Despite the sharp increase in nonperformexcess of $750 million of equity through offerings ing assets, ratios of such assets to the total were of common and preferred stock during the year. well below the peak levels of the mid-seventies. A significant portion of this total was raised Nonperforming assets consist of loans that are through stock-for-debt swaps, a recent innova- not accruing interest, that are past due, or that tion in the banking industry. The swaps, which have been renegotiated to accommodate finanare designed to boost earnings and to reduce cial difficulties of borrowers, and real estate financial leverage, involve the issuing of new acquired through foreclosure. shares of common stock in exchange for long- In contrast to the upsurge in nonperforming term debt of the issuer that has been purchased assets, net loan charge-offs increased only marin the market at a discount from face value. Bank ginally in 1981 and, in fact, declined as a percentholding companies raised about $300 million of age of average loans outstanding. Net loan equity in this manner during the year. Most of charge-offs of the 391 companies were $2.8 bilthe remaining volume of equity offerings was in lion, only 4.5 percent over the 1980 level of $2.7 the form of private placements. Bank stocks billion. The composite ratio of net loan losses to continued to sell at depressed multiples of price average loans outstanding declined to 0.36 perto earnings and price to book value throughout cent in 1981, compared with 0.38 percent the the year, a condition that has generally made previous year (table 10). Among the three peer external equity financing an unattractive and costly funding option. 10. Ratio of net loan losses to average loans outstanding, 1979-81 Percent Size class 1979 1980 1981 ASSET QUALITY Universe ..3311 ..3388 ..3366 $100 million to $1 billion ..3344 ..4477 ..4400 As expected, the downturn in economic activity $1 billion to $5 billion ..3399 ..4433 ..4433 $5 billion or more ..2288 ..3366 ..3333 and unusually high and volatile interest rates resulted in some deterioration in the quality of assets of bank holding companies in 1981. Signs groups, the large companies reported the lowest of that deterioration were seen in the rising level of net charge-offs to average loans for the incidence of corporate bankruptcies, the accel- year, 0.33 percent, while the small and mediumeration in downgradings of corporate-debt issues size companies reported charge-off ratios of 0.40 by rating agencies, and the upward trend in and 0.43 percent respectively. Historically, the mortgage delinquency rates. Although data on realization of recession-related loan losses lags nonperforming assets are not available for all of the onset of an economic downturn. Consequentthe companies included in the survey, data on a ly, the loan-loss ratio is generally viewed as a sample of large bank holding companies suggest lagging indicator of credit quality. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

341 Treasury and Federal Reserve Foreign Exchange Operations: Interim Report This interim report, covering the period Febru- percent, short-term interest rates moved higher. ary through April 1982, is the nineteenth of a The rise was interrupted in late February when series providing information on Treasury and the demand for money and credit declined. But System foreign exchange operations to supple- then, in March, expectations of another spurt in ment the regular series of semiannual reports money growth during April exerted renewed that are usually issued each March and Septem- upward pressures on short-term rates. Meanber. It was prepared by Sam Y. Cross, Manager while, long-term interest rates did not move of Foreign Operations of the System Open Mar- lower in the face of declining economic activity ket Account and Senior Vice President in charge essentially because of concerns that federal govof the Foreign Group of the Federal Reserve ernment deficits would burgeon in the years Bank of New York. ahead to the point of exerting major strains on the financial markets, particularly once the econ- A combination of wide interest rate differentials omy begins to expand again. favorable to dollar-denominated assets and a Abroad, interest rates in most countries did relatively more positive attitude toward econom- not increase and in many cases even declined. ic and political prospects for the United States Monetary authorities faced persistent stagnation than for other countries moved the dollar higher in their domestic economies and record unemin the exchange markets through mid-April. ployment. The widespread lowering of European Thereafter, though the dollar weakened substan- interest rates in January left market participants tially, it nonetheless ended the February-April with the impression that economic policy priorperiod under review higher on balance against all ities were shifting somewhat in favor of providmajor currencies except the German mark, ing economic stimulus as opposed to concentratwhich benefited from a positive shift in market ing as heavily as before on the anti-inflation fight. sentiment and strengthened across the board. Talk spread in the market that some foreign The dollar's advance through mid-April partly authorities might even impose capital or foreign reflected a reassessment of the U.S. interest rate exchange controls so as to permit a cut in their outlook. With the drop in economic activity in interest rates without incurring depreciations of the United States, market participants had ex- their currencies against the dollar. Such meapected some decline in U.S. short-term interest sures were not undertaken but, during March, rates and an erosion of the impressive interest many foreign central banks did reduce their rate advantage on dollar-denominated assets. official lending rates or otherwise facilitated an Instead, money growth surged early in 1982 easing in domestic monetary conditions. As a while economic activity was contracting. Although part of the bulge in money growth was 1. Drawings and repayments by foreign central thought to be short term and reversible in nature, banks under reciprocal currency arrangements part also reflected less technical factors such as Millions of dollars; drawings or repayments (—) increased precautionary demands by individuals. With the Federal Reserve restraining the supply Commit- February 1 Commit- Bank drawing on ments, Jan- through ments, of bank reserves to prevent the narrow monetary Federal Reserve System uary 31, April 30, April 30, 1982 1982 1982 aggregate (Ml) from staying persistently above the annual growth target for 1982 of 2xh to 51/2 Bank of Mexico 0 600.0 600.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 Federal Reserve Bulletin • June 1982 result, interest differentials in favor of the dollar 2. Net profits and losses (-) on U.S. Treasury and remained large, continuing to attract funds into Federal Reserve foreign exchange operations' dollar-denominated assets. Millions of dollars Meanwhile, exchange market sentiment to- U.S. Treasury ward the dollar was bolstered by the rapid ebbing FFeeddeerraall PPeerriioodd Exchange of U.S. inflation. As measured by the consumer RReesseerrvvee General Stabilization account price index, the inflation rate dropped several Fund percentage points in the early months of 1982 to February 1 through April about 3 percent at an annual rate, while inflation 30, 1982 0 .7 0 Valuation profits and abroad either declined by less or in some cases losses on outstanding assets and liabilities even accelerated. To be sure, part of the im- as of April 30, 1982 ... -410.8 -1,159.3 840.3 provement reflected recession-induced (and 1. Data are on a value-date basis. therefore more readily reversible) price declines in food, in energy, and in other raw materials, while the dollar's appreciation in the exchange "safe haven" for more liquid forms of capital as market also played a role by tempering import well. costs. But a decided moderation in wage settle- The downturn in world economic activity ments was also taking place in the United States, seemed to weigh especially heavily on econoand many in the exchange market saw reason to mies abroad and served to heighten competitive hope for more lasting changes in attitudes and in tensions. To be sure, the sharp decline of the behavior on the part of both business and labor, surplus of the Organization of Petroleum Exportwith the prospect of further progress on inflation ing Countries (OPEC) had its counterpart in ahead. lower current account deficits among the indus- Further supporting the dollar was the percep- trial countries, but the distribution of the benefits tion that the worldwide recession was harming was proving highly uneven. Moreover, even the U.S. trade balance and investment activity those countries with improving balance of payless than that of many other countries. While the ments trends, such as Germany and Japan, were weakness in the U.S. economy had previously not expected to sustain a rapid growth of their led analysts to scale back the forecast deteriora- exports. Constraints on expanded trade with tion in the U.S. current account, a swing into Eastern Europe developed in the wake of the deficit was nonetheless widely expected. How- Polish payments crisis, while previously rapid ever, the current account remained in surplus growth markets in Asia slowed. The growth of early in 1982, as sharply lower oil prices, a fall in import demand by OPEC dwindled as oil-proimport volumes, and large net services earnings ducing countries grappled with lower oil revemore than offset the deterioration in manufac- nues. In addition, the threat of major protectured exports. tionist measures clouded industrial country rela- At the same time, international investors felt tions, particularly those affecting Japan. At the that political stability and the long-term business same time, however, in nearly all countries overclimate in the United States provided a strong seas (more dependent on trade than the United inducement to continue investing in U.S. assets States for a large portion of gross national proddespite the higher level of the dollar in the uct), the anemic state of domestic demand trigexchanges. Already in 1981, reversing a longgered greater efforts by domestic enterprises to standing pattern, foreign direct investment in this sell in external markets, and consequently comcountry actually exceeded U.S. direct investpetitive pressures were strong. ment abroad by some $12 billion. Tax incentives, In these circumstances the realignment of the regulatory reforms, and the prospect of policy European Monetary System (EMS) in February continuity in support of market mechanisms conraised questions in private and official circles tinued to underpin foreign direct investment as about the relative competitiveness of member well as sizable inflows into U.S. stocks and economies, about the durability of the new parbonds. Moreover, geopolitical tensions from ties, and about the cohesion of participating time to time brought the dollar into demand as a states in the joint float arrangement. Indeed, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Foreign Exchange Operations: Interim Report 343 almost immediately after the February 20-21 swung toward the view that interest rates in this weekend when the central rates of the Belgian country could drop, perhaps substantially, in the franc and Danish krone were adjusted downward ensuing months. And, in fact, U.S. interest rates 8V2 and 3 percent respectively, speculation de- did decline toward the month-end. veloped that the EMS would again be realigned. At the same time, market participants were Selling pressures focused on currencies of coun- disappointed that U.S. mediation efforts were tries where the policy design or the economic- unable to avert a military conflict between Arsocial setting was thought by the market to gentina and the United Kingdom and expressed impede the fight against inflation and the efforts concern that U.S. relations with Latin America to regain equilibrium in the balance of payments might deteriorate in view of the U.S. alliance or to put public-sector finances on a sounder with Britain. Paralleling the sense of disappointbasis. The speculative selling pressures—most ment over U.S. leadership in the foreign arena intense against the French franc, the Belgian was a lessening of confidence in U.S. economic franc, and the Italian lira—tended to moderate managment on the domestic front, as hope for an by early April following official actions to raise early and satisfactory solution to the budget interest rates and restrict capital outflows. In deficit faded amid drawn-out and inconclusive addition, foreign monetary authorities inter- discussion and negotiations. vened heavily as sellers of dollars and, to a lesser The market's more cautious assessment of the extent, of currencies that traded at the top of the dollar coincided with a favorable shift in sentijoint float. Even so, the EMS currencies declined ment toward the German mark. In Germany, substantially against the dollar. progress toward curbing inflation was under- In response to these various factors, therefore, scored by moderate wage settlements negotiated from the end of January to mid-April the dollar with the pacesetting metalworkers union. Publigained as much as 8 percent against the Japanese cation of a record postwar monthly trade surplus yen, 63/t percent against sterling and the Swiss for March appeared to confirm the considerable franc, about 3Vi percent against the German improvement under way in Germany's balance mark, and nearly 3 percent against the Canadian of payments position both in relation to earlier dollar to approach levels close to the peaks trends and in relation to other industrial counregistered in August 1981. tries. Within the EMS the mark had already been In the latter half of April, however, traders and strong for more than a year, and with these investors began to assess the dollar's prospects developments the German currency strengthless favorably and dollar exchange rates de- ened against the dollar as well. clined. The latest economic statistics gave virtu- In these circumstances the dollar fell back ally no sign of an end to recession, eroding hopes against all major currencies in late April. It that a perceptible recovery in U.S. business closed the three-month period under review, activity was likely in the near term. With produc- down about V2 percent against the German mark. tion, employment, and incomes proving weaker In relation to other currencies, however, the than once anticipated, grounds developed for dollar remained more resilient and ended the expecting the April bulge in M1 to unwind quick- period higher, on balance, by about 2 percent ly, thereby lessening the need in the view of against the Canadian dollar, 2Vi percent against market participants for an immediate squeezing the Japanese yen, 3 percent against sterling, and of the availability of bank reserves under the AVi percent against the Swiss franc. Federal Reserve's monetary policy approach. During the period, the Trading Desk did not For a brief period, also, optimism developed in intervene for the account of the U.S. Treasury or the exchange markets of an early compromise on the Federal Reserve. The Desk continued its measures to bring projected federal deficits in long-standing practice of intervening as agent for fiscal year 1983 and beyond under better control. other central banks from time to time in the New Consequently, though market participants re- York market. mained sensitive to the many forces underpin- In other developments, the Mexican governning the high level of U.S. interest rates, the ment devalued the peso in February and for a balance of opinion in the exchange markets time the peso benefited in the exchanges from a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 Federal Reserve Bulletin • June 1982 reflux of funds. However, selling pressures again through April, the Federal Reserve and the Treabuilt up, and in late April the government an- sury general account realized no profits or losses nounced a stabilization program to improve the from exchange transactions. The Exchange Stapolicy framework for dealing with the country's bilization Fund gained $0.7 million in connection inflation and balance of payments problems. with the sale of foreign currency to the Treasury Mexico's international reserve position was un- general account to finance interest payments on der strain during the period; to help meet a foreign currency-denominated securities. As of temporary reserve need, the Bank of Mexico April 30, valuation losses on outstanding foreign requested and was granted a $600 million draw- currency balances were $410.8 million for the ing on its $700 million swap line with the Federal Federal Reserve and $1,159.3 million for the Reserve. The funds were drawn on April 30 and Exchange Stabilization Fund. The Treasury genrepaid shortly after the close of the period under eral account had valuation gains of $840.3 million review. related to outstanding issues of securities denom- In the three-month period from February inated in foreign currencies. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

345 Staff Studies The staffs of the Board of Governors of the In all cases the analyses and conclusions set Federal Reserve System and of the Federal forth are those of the authors and do not neces- Reserve Banks undertake studies that cover a sarily indicate concurrence by the Board of Govwide range of economic and financial subjects. ernors, by the Federal Reserve Banks, or by the In some instances the Federal Reserve System members of their staffs. finances similar studies by members of the aca- Single copies of the full text of each of the demic profession. studies or papers summarized in the BULLETIN From time to time, papers that are of general are available without charge. The list of Federal interest to the professions and to others are Reserve Board publications at the back of each selected for the Staff Studies series. These pa- BULLETIN includes a separate section entitled pers are summarized—or, occasionally, printed "Staff Studies" that lists the studies that are in full—in the FEDERAL RESERVE BULLETIN. currently available. STUDY SUMMARY THE COMMUNITY REINVESTMENT ACT AND CREDIT ALLOCATION Glenn Canner—Staff, Board of Governors Prepared as a staff paper in early 1981 The Community Reinvestment Act of 1977 was Proponents of the CRA emphasized that the passed in response to a widely held perception law was not intended to require specific lending that sound lending opportunities in inner-city targets, but rather to encourage lenders to take areas either were not recognized or were being affirmative action to ensure that creditworthy ignored by institutional lenders. The primary borrowers in their communities were not ignored purpose of the Community Reinvestment Act and that all borrowers were treated in an even- (CRA) is to assure that local depository institu- handed manner. Those opposed to the legislation tions supervised by federal financial agencies do expressed concern that the act represented a not neglect the credit needs of the institution's significant step toward credit allocation by the local communities, including low- and moderate- public sector. The opponents envisioned that the income neighborhoods. Each appropriate federal law would be used to require a lender to extend a financial supervisory agency is required to assess specific dollar volume of credit to residents of a the degree to which depository institutions are neighborhood irrespective of the soundness of meeting the credit needs of their communities the loans. This paper reviews the legislative and to use its authority to encourage those intent of the CRA and the actions taken by the institutions to meet their CRA obligations con- Federal Reserve System since the implementasistent with safe and sound banking practices. tion of the CRA. The analysis focuses on the Furthermore, the CRA directs each supervisory relationship between the CRA and credit allocaagency to take into account the CRA record tion as carried out by the Federal Reserve. when an institution applies for a deposit facility. A review of developments stemming from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 Federal Reserve Bulletin • June 1982 Federal Reserve System actions on bank and the other hand, a number of negotiated settlebanking organization applications that involved ments of CRA protests, as well as conditions specific CRA issues, either raised by protestants imposed by other supervisory agencies, have or consumer compliance examiners, indicates raised the specter of credit allocation. Inasmuch that these actions appear to be consistent with as the geographic allocation of funds is often a congressional intent. In this regard, the System primary goal of protestants, negotiated CRA has attempted neither to pressure institutions to settlements in the future are likely to continue to allocate funds to specific neighborhoods or involve some elements of geographic credit allogroups nor to offer a particular mix of credit. On cation. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

347 Industrial Production Released for publication June 15 In market groupings, production of consumer durable goods increased 2.3 percent in May, Industrial production edged down an estimated reflecting a sharp rise in automotive products 0.2 percent in May, after declines of 0.8 percent and little change in home goods. Autos were in each of the two preceding months. Output of assembled at an annual rate of 5.6 million units, business equipment and basic metals continued up about 10 percent from the April rate. Output to drop sharply, while consumer goods increased of lightweight trucks also advanced further. Nonagain. At 140.3 percent of the 1967 average, the durable consumer goods evidenced another index in May was 8.8 percent below its recent small increase. peak in July 1981. Output of business equipment was reduced 1.6 1967 = 100 1967 = 100 All series are seasonally adjusted and are plotted on a ratio scale. Auto sales and stocks include imports. Latest figures: May. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 Federal Reserve Bulletin • June 1982 1967 = 100 Percentage change from preceding month PPPeeerrrccceeennntttaaagggeee ccchhhaaannngggeee,,, Grouping 1982 1982 MMMaaayyy 111999888111 tttooo MMMaaayyy Apr.p Maye Jan. Feb. Mar. Apr. May 111999888222 Major market groupings Total industrial production 140.6 140.3 -1.9 1.6 -.8 -.8 -.2 -8.1 Products, total 143.4 143.3 -2.3 1.2 -.6 -.3 -.1 -5.9 Final products 143.2 143.3 -2.4 .9 -.5 -.1 .1 -5.3 Consumer goods 142.6 143.8 -1.7 1.6 -.2 .8 .8 -4.6 Durable 131.2 134.2 -2.5 4.8 1.9 2.3 2.3 -8.9 Nondurable 147.1 147.6 -1.4 .5 -.9 .2 .3 -3.0 Business equipment 166.0 163.3 -3.8 -.3 -1.5 -1.8 -1.6 -10.3 Defense and space 107.3 107.9 -1.7 1.2 .7 .1 .6 5.8 Intermediate products 143.8 143.5 -1.7 2.0 -.8 -1.0 -.2 -8.1 Construction supplies 123.4 123.9 -2.2 2.7 -1.4 -1.8 .4 -15.4 Materials 136.4 135.5 -1.3 2.3 -1.3 -1.6 -.7 -11.7 Major industry groupings Manufacturing 139.2 139.1 -2.5 1.7 -.5 -.7 -.1 -9.0 Durable 127.3 127.0 -3.2 1.7 -.8 -.8 -.2 -11.5 Nondurable 156.6 156.7 -1.5 1.7 -.3 -.4 .1 -5.8 Mining 133.3 130.1 1.3 -1.5 -2.7 -3.8 -2.4 -3.9 Utilities 170.0 169.1 2.1 -.8 -.3 .1 -.5 -.9 p Preliminary. e Estimated. NOTE. Indexes are seasonally adjusted. percent further in May, after cutbacks totaling goods rose for the fourth consecutive month, more than 10 percent over the nine preceding largely reflecting gains in the automotive sector. months. Large declines occurred in May in build- Nondurable materials and energy materials deing and mining and manufacturing equipment. creased again. Production of defense equipment rose again. In industry groupings, output of manufacturing Construction supplies increased slightly, after edged down 0.1 percent in May. Production of sharp declines in March and April. durable manufacturing decreased 0.2 percent, as Output of materials declined 0.7 percent in sizable declines in primary metals and machinery May—about half of the reduction that occurred were partially offset by a higher level of motor in each of the two preceding months. Among vehicle output; production in nondurable manudurable materials, sharp cutbacks continued in facturing was almost unchanged. Output of minthe production of basic metals and equipment ing dropped 2.4 percent, and utilities declined 0.5 parts; in contrast, parts for consumer durable percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

349 Statements to Congress Statement by Henry C. Wallich, Member, Board (2) a bank might allocate available credit on of Governors of the Federal Reserve System, bases other than the creditworthiness of the before the Subcommittee on Financial Institu- borrower by giving preference to customers of tions Supervision, Regulation and Insurance of the banks' affiliates or by denying credit to the Committee on Banking, Finance and Urban competitors of the banks' affiliates—possibilities Affairs, U.S. House of Representatives, May 19, that illustrate the basic issues of avoiding con- 1982. flicts of interest and excessive concentration of resources. I am pleased to testify on H.R. 6016, a bill that The separation of banking and commerce has would facilitate the establishment and operation served this nation well in promoting a strong of export trading companies. banking system and economic competition. The At the outset, I should like to restate the view Board is concerned that a breach of that tradiof the Board that the United States needs a tional separation in the case of trading companies strong export sector. Export trading companies could adversely affect the safety and soundness have been proposed as a means of contributing to of U.S. banks as well as their role as impartial the achievement of this goal by providing pro- arbiters of credit and could be an adverse preceducers of goods and services that have additional dent for breaches of this wall in other areas. business opportunities with a way of reducing The Board is also concerned with the risks the risks associated with foreign business en- arising from bank involvement as managers and deavors and offering producers a wide variety of controlling investors in new enterprises at a time services. Export trading companies may be able when bank capital generally is at an uncomfortto provide assistance to small- and medium-size ably low level. The Board and the Comptroller of U.S. businesses producing goods that can be the Currency recently issued a joint policy statemarketed abroad. ment setting forth their concerns over the secular Some have suggested that participation by declines in the capital ratios of the nation's banks, particularly bank ownership, is essential largest banking organizations and indicating their to the effective operation of export trading com- intention to encourage through supervisory polipanies. In the Board's view, the question of cies appropriate steps to improve the capital whether export trading companies can be of positions of the lower-ranking members of the significant help to U.S. exporters does not de- large-bank group. This situation suggests the pend upon such a role for banks, as I have need for caution in any opening of the doors to testified in the past. But in any event, I believe, new enterprises with largely unknown risks. more important problems of principle are posed While reiterating the view that banking organiby bank equity ownership of entities directly zations should not generally have controlling engaged in commerce. Bank control of trading interests in export trading companies, I shall companies runs counter to our long-standing direct my remarks to the specific provisions of national policy, firmly embedded in legislation, H.R. 6016 as they relate to the concerns of the of the separation of banking and commerce. Board. This policy has its basis in two principal con- The Board has previously supported the view cerns: (1) the safety and soundness of particular that if banks are to be affiliated with export banks, and of the banking system in general, trading companies, the investments in trading might be impaired if banks were closely affiliated companies should be held only through bank with the ownership, management, and operation holding companies. I am pleased that H.R. 6016 of a potentially high-risk nonbank business, and goes far toward meeting this objective by provid- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 Federal Reserve Bulletin • June 1982 ing that interests in export trading companies volving bank holding companies and nonbank could be held only through bank holding compa- organizations, especially when the nonbank nies or Edge corporations. company was engaged in manufacturing or com- The proper location and the amount of super- mercial enterprise. Accordingly, the Board bevision of nonbanking activities of bank holding lieves that any export trading company legislacompanies have been the subject of much discus- tion should restrict the ability of banking and sion recently. The Treasury, for example, has nonbanking organizations to own jointly an exsuggested that all nonbanking activities should port trading company. be required to be conducted through separate Another suggestion is that banks below a cersubsidiaries of a bank holding company. In its tain size, which are unlikely to have a bank view, this requirement, would adequately insu- holding company parent, should be permitted to late affiliated banks from such activities and so invest directly in export trading companies. But would make possible virtually automatic approv- the reasons for restricting export trading compaal of the activity and allow regulatory oversight ny ownership to bank holding companies apply to remain minimal. equally to banks that do not have a parent In the past, the Board has seen no strong need holding company. While the Board has in the to require banking activities to be conducted in past indicated that passive minority investments separate subsidiaries. Indeed, allowing banking in export trading companies of a purely financial organizations the latitude to develop organiza- nature might be permitted for banks as well as tional structures designed to suit their unique bank holding companies, all significant investneeds has advantages in the form of economic ments in trading companies, and certainly all efficiency and easier regulatory oversight. Such controlling investments, should be permitted an approach has proved advantageous to banks only through a bank holding company. and holding companies of all sizes and locations In addition to prohibiting direct bank ownerin providing a range of banking activities in ship of export trading companies, I believe other structures that promote competition. We contin- safeguards in H.R. 6016 are important in limiting ue to support this approach as a general principle the risks to which a banking organization would for banking activities, and particularly for ex- be exposed as a result of a controlling interest in panded securities activities that are closely relat- an export trading company. The bill recognizes ed to banking. that the area in which the bank's expertise is On the other hand, the Board believes the likely to be of greatest value to the trading appropriate location for trading company activi- company is through financing, and places restricties would be in a subsidiary of a holding compa- tions on the investments in and extensions of ny, rather than in a direct subsidiary of the bank credit to the trading company by the bank holdor its Edge corporation. In the case of export ing company. trading companies the Board believes such an However, the proposal in H.R. 6016 to apply arrangement to be desirable because export trad- section 23A of the Federal Reserve Act to the ing companies would represent the first instance bank holding company with respect to its extenof bank holding companies being permitted to sions of credit to its affiliate trading company own companies engaged in commerce as distin- would be an unusual application of section 23A. guished from banking. This arrangement would That provision has previously been applied only have the advantage of assuring uniform regula- to banks, and not to bank holding companies, tory oversight over a new and potentially risky with the purpose of safeguarding the resources of activity. banks against misuse of those resources for the The Board would be further concerned if the benefit of organizations under common control traditional barrier between banking and com- with the bank. I feel bound to point out that this merce were breached not only by allowing bank- provision in H.R. 6016 would virtually eliminate ing organizations to engage in nonbank activities extensions of credit from the holding company to but also by allowing banking organizations to be its controlled export trading company because of partners in ventures with nonbank companies. the stringent collateral requirements of section We have generally opposed joint ventures in- 23A. On the other hand, the effect of this ap- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 351 proach would be to permit—without any limits— holding company as the name of the export extensions of credit by other nonbank affiliates, trading company and the participation of these such as a holding company's finance company companies in manufacturing are of particular subsidiary, to the trading company. importance to the Board in considering this legis- A more effective approach would be to limit lation. We have in the past supported the safeextensions of credit by a banking organization guard in H.R. 6016 that prohibits an export and its affiliates to any single export trading trading company from having a name similar in company to an amount that, together with the any respect to that of the bank or bank holding investment in that company, would not exceed company with which it is affiliated through stock 10 percent of the banking organization's capital, ownership. As in the case of real estate investwhile total equity investment by a banking orga- ment trusts in the mid-1970s, public identificanization in one or more trading companies could tion of a bank with another enterprise could not exceed, in the aggregate, 5 percent of the involve the bank in significant losses, even when banking organization's capital. These loans it has no ownership interest. could be made by the bank, its Edge corpora- We believe that the use of the name of the tions, or other holding company affiliates. The bank or bank holding company to promote the bank's lending would, of course, also be limited activities of an export trading company, which by the amount and collateral requirements of are not in our view closely related to the business section 23A. We believe that this method of of banking, is inappropriate for a number of limiting the exposure of the banking organization reasons. First, such use incorrectly implies that to this new activity would be both workable and the full faith and credit of the affiliated bank prudent. stands behind the export trading company. Sec- In addition, I believe other reasonable steps ond, it could have an adverse effect on the can be taken to limit the banking organization's reputation and public confidence in the bank if financial exposure. H.R. 6016 could further be the export trading company were to suffer a strengthened by a provision similar to the one in financial setback. Third, a greater likelihood S.734 that prohibits a bank holding company and exists that the assets of the banking organization its affiliates from making extensions of credit to would be depleted in order to bail out a troubled the customers of its affiliated export trading export trading company with a similar name. company on terms more favorable than those We have made the same recommendation for afforded similar borrowers in similar circum- bank participation in securities functions such as stances, and requires that such extensions of stock and bond mutual funds. This recommendacredit involve no more than the normal risk of tion has even greater force with respect to bank repayment or present other unfavorable features. holding company activity that breaches the line The Board also believes that an export trading between commerce and banking. Accordingly, company controlled by a bank holding company the Board supports the proposal that an export should be prohibited from taking title to goods or trading company not bear a name similar to that commodities except in very limited circum- of its affiliated bank or bank holding company, stances. The export trading company should be even when the bank holding company has a allowed to take title to goods or commodities controlling ownership interest in the export tradonly on the basis of firm orders from customers ing company. or when necessary to effectuate a sale. More- H.R. 6016 also provides that an export trading over, the bill should clearly authorize the Board company owned by a bank holding company may to determine that, if an export trading company not engage in manufacturing. The Board's concontrolled by a bank holding company holds cern over control of export trading companies by manufactured goods or commodities in inventory bank holding companies is based on a continuing in order to speculate on price movements in belief that the traditional separation of banking these goods, such activity would constitute an and commerce is a wise policy; accordingly, we unsafe or unsound practice. favor legislation that limits the extent to which a Two additional safeguards in H.R. 6016 con- bank holding company may engage in commercerning the use of the name of the bank or bank cial activities through the export trading compa- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 Federal Reserve Bulletin • June 1982 ny, without significantly jeopardizing the viabili- Board should be authorized to deny an applicaty of that company. I do not believe that a tion unless the activities of the export trading prohibition on manufacturing would in any way company would be limited to international trade compromise the ability of export trading compa- in specific goods and services and unless the nies to play a constructive role in facilitating bank investment could contribute substantially exports. For example, if modifications to prod- both to the establishment of the trading company ucts are required, to have them performed by the and to exporting or facilitating the exportation of manufacturer, or by an independent manufactur- goods and services. er, rather than by the export trading company, Also, the bill should state that, if the Board would seem both preferable and feasible. This finds any adverse financial, managerial, competiprovision would further the basic principle of the tive, or other banking factors associated with the separation of the business of banking from the particular investment, it has the discretion to conduct of commerce. approve the application only if it determines that Finally, H.R. 6016 provides that the Board the export benefits clearly outweigh any such approve each investment by a bank holding adverse effects. These standards would place a company in an export trading company. In the heavier burden on bank holding company appli- Board's view it is appropriate to allow some level cants to demonstrate the benefits of their proof noncontrolling investments (more than 5 per- posed investment. The balancing test would be cent but less than 20 percent) that may be made similar to the test that the Board administers in in export trading companies without applying the acting upon applications pursuant to section standards with respect to controlling interests in 4(c)(8) of the Bank Holding Company Act. The export trading companies that we recommend Board and its staff would, of course, be willing to below, provided such investments meet the crite- work with the subcommittee in drafting appropriria in section 4 of the Bank Holding Company ate language to this effect. Act. The Board anticipates that applications of In addition to its provisions regarding export this type could be abbreviated and processed trading companies, H.R. 6016 would amend the under expedited procedures. Federal Reserve Act to increase the aggregate With regard to the standards on controlling limitation on the amount of eligible bankers interests, H.R. 6016 as currently drafted, does acceptances that may be issued by a member not, in our view, provide sufficient guidance as to bank from 50 percent of capital and surplus (100 when the Board should disapprove an applica- percent with the Board's permission) to 150 tion to make a controlling investment in an percent of capital and surplus (200 percent with export trading company. The bill states that the the Board's permission). The limitations would Board may not grant approval of any application be applied also to nonmember commercial banks to acquire an interest in an export trading compa- and to U.S. branches and agencies of foreign ny unless the Board has taken into consideration banks. the financial and managerial resources, competi- The Board believes that both expanding the tive situation, and future prospects of the bank current aggregate limitation on the issuance of holding company and the export trading compa- eligible bankers acceptances and applying those ny involved. The legislation also gives the Board limits to the other entities with which member authority to impose restrictions, by regulation or banks compete in the acceptance market are otherwise, that the Board considers necessary to appropriate. In applying the limitation on eligible prevent conflicts of interest, unsafe or unsound bankers acceptances to U.S. branches and agenbanking practices, undue concentration of re- cies of foreign banks, the Board believes that the sources, and decreased or unfair competition. appropriate measure of capital is the worldwide capital of the parent foreign bank. Use of such a In considering applications involving control, measure in this country would be consistent with an appropriate requirement might be that the the efforts being made to promote the use of Board find a reasonable likelihood that the bank worldwide capital, rather than local-based capiinvestment would bring about an increase in the tal, for purposes of prudential limitations imlevel of exports or in the penetration of foreign posed in other countries. markets that would not otherwise occur. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 353 The Board believes, however, that the provi- mends that this language be adopted in place of sion as now drafted presents potential problems the present provision. with regard to participations. Under the existing In conclusion, I should restate the Board's language, a bank could expand the amount of its position that the U.S. economy would best be bankers acceptances outstanding virtually with- served by having banking organizations assist out limit by issuing participations to other banks. trading companies as bankers and limited inves- Such a practice would undermine the effective- tors rather than as owner-operators of these ness of the limits established by the bill and could firms. However, in the event that the legislation adversely affect monetary policy to the extent is enacted that would enable banking organizathat bankers acceptances are substituted for li- tions to have a controlling ownership investment abilities that would otherwise be subject to re- in export trading companies, the Board believes serve requirements. We believe that this problem that the restriction of the ownership interests in could be corrected through a specific provision export trading companies to bank holding comthat authorizes the Board to establish terms and panies, together with the other limitations on the conditions under which participations in bankers holding company's relationship to its controlled acceptances may be issued. In this connection, trading company and on the activities of the the Board previously submitted a draft bill that trading company itself that I have discussed, is would not give rise to these problems and recom- an important and necessary safeguard. • Statement by Preston Martin, Vice Chairman, ment. The Board's view is that disinflationary Board of Governors of the Federal Reserve Sys- policies will continue to succeed, contributing to tem, before the Committee on Banking, Hous- lower and more stable interest rates, and a ing, and Urban Affairs, U.S. Senate, May 26, reversal of the pressure on the earnings and 1982. capital of thrift institutions. The runoff of older portfolio assets and the growing use of alterna- I am pleased to appear before you to present the tive mortgage instruments will also work to im- Federal Reserve Board's views on S. 2531 (the prove earnings. In the interim, however, special Capital Assistance Act of 1982) and S. 2532 (the measures are required to bridge the gap until Deposit Insurance Flexibility Act). The Board more normal operating conditions can be rewelcomes Senate consideration of the issues stored. raised by these two interrelated bills, supports During the transition period, the regulatory their objectives, and urges prompt Senate action agencies need the tools to support those instituto increase the ability of the agencies to address tions with sound assets and satisfactory prosthe current financial problems facing the nation's pects, and to continue to reorganize or merge thrift institutions. those that will not be able to operate profitably As this committee well knows, the present even in normal circumstances. By providing addifficulties of the thrift industry, which S. 2531 ditional flexibility to the regulators, the bills and S. 2532 address, reflect the combination of provide the agencies with the powers necessary rising deposit costs and portfolios composed to deal with the transitional problems faced by largely of long-term, fixed-rate assets acquired in depository institutions—especially the nation's periods of lower interest rates. As a result, thrift thrift institutions. institutions in the aggregate have suffered signifi- The bills before the committee do not fundacant operating losses and their capital position is mentally alter the basic authority or role of the being sharply eroded. The problem reflects the agencies, but rather provide the framework for general conditions of the economy and the mon- assistance programs for those depository instituey market, as well as the long-run effect of public tions that, with some support, would likely surpolicies that have fostered portfolio concentra- vive a period of financial stress, and also broaden tion by thrifts in fixed-rate, long-term residential merger possibilities for those institutions that mortgages, rather than endemic poor manage- probably cannot. The bills remove certain im- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 Federal Reserve Bulletin • June 1982 pediments, under carefully prescribed circum- institutions or, as a last resort in those circumstances, that experience shows limit the ability of stances in which merger with another thrift is not the regulators to deal with the practical realities practicable, by bank holding companies. In order facing them. Up to the present time the regula- to facilitate mergers, the bill also overcomes tors have been able to respond to the problems limitations in some states that prohibit mutual under existing authority. However, the Board is thrifts from converting to stock form. concerned that future circumstances may make it Earlier this year the Federal Reserve authoextremely difficult—if not impossible—for the rized the acquisition of a financially distressed agencies to find satisfactory solutions in specific non-FSLIC-insured savings and loan by a bank instances under existing statutory limitations. holding company, as Chairman Volcker previ- Prudence dictates the removal of those existing ously indicated might be necessary if the Board limitations that may result in more costly or were faced with an emergency situation. The inefficient solutions or that have the potential to Board has also returned a proposed application widen the market impact of financial distress of a by a bank holding company to acquire a thrift few depository institutions. because the major activity that the applicant S. 2532 is very similar to the regulators' bill proposed to undertake through the thrift—equity that Chairman Volcker recommended and en- real estate development—is not permitted to dorsed in testimony on S. 1720 before this com- bank holding companies. Other bank holding mittee last fall. The bill now before the commit- companies recently have expressed interest in tee has two main elements. First, it broadens the acquiring thrifts, some of which are not in critical authority of the Federal Deposit Insurance Cor- condition. Consequently, the Federal Reserve poration (FDIC) and the Federal Savings and continues to believe that it is desirable for the Loan Insurance Corporation (FSLIC) to provide Congress to provide guidance on bank holding financial assistance to distressed institutions if company acquisitions of thrift institutions. such assistance will be less costly to the insur- S. 2532 would provide this guidance. ance funds than assisted mergers or liquidation. The legislation would also authorize, under Currently, the FDIC can only provide such as- carefully prescribed circumstances, the acquisisistance when it finds that both the particular tion of a failing large bank by an out-of-state institution to be assisted is "essential" to the bank or bank holding company. For several community and the assistance is less costly than years, the regulators have asked for such authorother alternatives. The present statutory test ity because of their concern that, in the event of may hinder the ability of the FDIC to assist failure of a large bank, an in-state institution institutions, particularly in markets where a large capable of acquiring the failing bank may not number of depository institutions operate. In exist. Some observers have been concerned that these heavily served areas, the "essentiality" such authority—as well as bank holding compatest might be difficult to meet even though the ny acquisitions of financially distressed thrifts— failure or liquidation of one or more institutions might be used as a back-door method of undermight adversely affect confidence in the financial mining the principles established by the McFadservices industry generally. Under S. 2532, the den Act and Douglas amendment. However, the FDIC would no longer be constrained by the prescribed procedures and limitations of the bill essentiality test. Rather, it could in addition assure that this provision will be used solely to provide assistance to institutions that are likely resolve serious individual problems and not to to be viable in the long run when "severe finan- facilitate a wholesale restructuring of the financial conditions exist that threaten the stability of cial system. a significant number of' insured institutions. The Board views the thrust of the Capital Such assistance is conditioned on a finding that it Assistance Act of 1982 (S. 2531) as a logical and will "lessen the risk to the" insurance fund and desirable extension of the capital assistance auwill be less costly than liquidation. thority of the Deposit Insurance Flexibility Act Second, S. 2532 provides clear and specific (S. 2532). Capital infusion to institutions that guidance as to the circumstances under which have a reasonable prospect of viability when failing thrifts can be acquired by out-of-state interest rates decline provides an efficient and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 355 cost-effective tool as an alternative to immediate specific level, such as 2 percent, and maintaining liquidation or merger of financially distressed it at that level for a period would be desirable. institutions. Capital infusion provides time for The Board believes in the importance of a capital such institutions to rebuild their capital position infusion program that provides the insurance from future earnings. However, capital assist- funds with discretion and flexibility to fashion ance should not be used to maintain the exis- assistance programs to meet the unique needs of tence of institutions that find themselves in diffi- individual institutions. Generally, S. 2531 proculty due to mismanagement or speculation vides considerable discretion, but the committee because they would be unlikely to recover even may wish to consider minor modifications to under favorable circumstances in financial mar- assure that a specific capital ratio can be kets. S. 2531 explicitly addresses the latter con- achieved and maintained when desirable in indicern by prohibiting capital infusion to cover vidual cases. losses arising from mismanagement or specula- Without a capital infusion program, the numtion. ber of assisted mergers and perhaps even liquida- More generally, assistance is not automatic for tions would likely be larger, involving commitall low-capital institutions incurring losses. The ments by the insurance funds, all of which may bill provides desirable discretion to the agencies show up as current or future federal expendito assure that assistance is provided only to tures. While capital infusion under this bill rethose institutions that have reasonable prospects quires no current outlays, the notes issued by the for viability at lower interest rates. For these insurance funds to the assisted institutions may depository institutions, the bill establishes an involve interest payments that will be reflected in initial schedule for capital infusion related to net the budget. However, by forestalling the need for worth and actual losses—the lower the net worth, mergers or liquidations of institutions that can be the higher the amount of capital infusion that viable in the long run, both current and future may be provided. However, the size of capital budget expenditures should be reduced. Indeed, assistance called for by the schedule is always by regarding capital assistance as net worth for less than actual losses, and hence continues to statutory and regulatory purposes, the bill may bring market discipline to bear. The bill therefore prevent the need to merge or liquidate instituis not intended to allow a widespread "bailout" tions that would otherwise be required to be of financially distressed banks or thrifts, and closed under state law. Still, the Congress may indeed the terms and conditions under which later need to consider providing supplementary capital assistance may be provided assure that resources to the insurance funds to help cover such bailouts will not occur. their obligations incurred under S. 2531. S. 2531 recognizes that no single schedule can In conclusion, let me reiterate that the Federal adequately take into account all of the practical Reserve believes that the expanded authority issues that the insurance funds may encounter. It along the lines authorized by these two bills is therefore permits the funds to depart from the urgently needed, given the temporary circuminitial schedule and provide less or additional stances faced by depository institutions. No one assistance as the situation demands. However, in knows how long these difficulties will continue, no instance may assistance exceed an institu- but without such legislation the Board is contion's losses for the "immediately preceding cerned that situations could develop in which the period." While the approach established by the regulators would be unable to address the probbill appears to be adequate to meet the foresee- lems of particular distressed institutions in a able temporary needs of depository institutions, prompt and cost-effective manner. The Federal the Board would support additional flexibility Reserve believes that there should be no questhat would permit, in carefully circumscribed tion about the ability and willingness of the instances, larger amounts of capital infusion if government to assure the continued smooth such infusion would ultimately result in less cost functioning of our financial system as required in to the insurance funds. For example, specific the public interest. Consequently, the Board situations may arise when raising the capital ratio supports the objectives of these bills and urges of an institution with very low capital to a prompt action by the Senate along these lines. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 Federal Reserve Bulletin • June 1982 Statement by J. Charles Partee, Member, Board during most of that time. Most companies typiof Governors of the Federal Reserve System, cally experience both declining real sales and a before the Subcommittee on Domestic Monetary drop in profits during cyclical contractions, as Policy of the Committee on Banking, Finance revenues fall off faster than costs can be cut and Urban Affairs, U.S. House of Representa- back. But what makes the profit squeeze we are tives, May 26, 1982. now witnessing so severe is that it comes on the heels of three years of relatively sluggish growth I am pleased to appear before this subcommittee in profits. Also, the persistence of high interest to discuss my views of the current financial rates has added to the problems of businesses. In condition of our nation's businesses and its rela- the past, interest rates generally have fallen tionship to monetary and fiscal policy. sharply during periods of economic slack, pro- Recent headlines attest to the timeliness of viding some relief to businesses in meeting their these hearings. Business failures have risen debt obligations and financing activities when sharply and are now at their highest levels of the sales and revenues were depressed. The downpostwar period, and several extremely large ward movement in rates in the current recession firms have filed for bankruptcy in recent weeks. has been quite limited thus far, reflecting a Beset by a very sluggish economy and sharply variety of factors; these include the continued declining profits and burdened by continuing nervous state of credit markets, the exceptionalhigh interest rates, the financial health of the ly heavy current and prospective financing of the business community has worsened steadily over federal deficit, and the need to keep monetary recent quarters. Moreover, this situation has policy on a steady noninflationary course of followed a more gradual weakening in financial moderation. structure that has accompanied a decade and a Continuing high interest rates have had a parhalf of accelerating inflation. Indeed, growing ticularly marked effect on businesses because expectations of inflation encouraged businesses many firms have come to rely heavily on credit, to take risks they might not otherwise have particularly short-term sources of funds, over the taken, to tolerate unbalanced debt structures, years. At the same time, they have reduced their and to accept unwarranted cost increases in cushion of liquid assets relative to their liabilhopes that things would work out over time. ities. These trends reflect basic shifts in corpo- At the Federal Reserve we believe that the rate financing patterns that have been under way financial situation of businesses will improve for many years—trends fundamentally related to gradually as the economy resumes its growth on the long period of substantial and intensifying a steadier and less inflationary path. There are inflation to which our economy has been subjectencouraging signs that significant progress has ed. been made in laying the foundation for such growth. Economic activity should be on a recovery trend later this year and substantial—though BACKGROUND still partial—success has been achieved in cooling inflation and inflation expectations. Never- The years since the mid-1960s have been marked theless, the current financial difficulties seem by tremendous changes in financial markets. The likely to persist for a while longer, and they are major inducement to change has been the shift— of very substantial concern. albeit a gradual one—from an environment of relatively stable prices to one in which inflation seemed to become a permanent and increasingly THE CURRENT ENVIRONMENT pernicious feature of the economic landscape. The most obvious effect of the accelerating price The proximate causes of the difficulties that movement was the irregular upward trend in many business firms are now facing are the nominal interest rates. With the pace of inflation extremely sluggish performance of the economy quickening, lenders required larger premiums to and profits over the past several years and the compensate for the anticipated reduction in purhigh levels of interest rates that have prevailed chasing power of the funds they would be repaid. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 357 Borrowers, of course, were not happy to pay maturities of 25 years or longer prevalent in higher rates, but for many years they were earlier years. willing to do so in the expectation that incomes The limited supply of funds available for longwould rise to equal or exceed the general in- term investment has prevented some corporacrease in prices. In addition, higher prices meant tions from funding their short-term liabilities, that more and more funds were required to while other corporations, concerned about the finance any particular scale of activities. Be- high rates prevailing in bond markets, have been cause these needs consistently outpaced retained reluctant to lock themselves into long-term liabilearnings—a residual item in business opera- ities at these high rates. As seems quite rational, tions—a large volume of outside funds had to be many have preferred instead to finance short raised and cost considerations favored doing this term in the expectation that rates will drop or in the credit markets. because they are uncertain about future rate and In an inflationary environment, the attractive- price movements and wish to maintain some ness of debt relative to equity financing is en- flexibility. To be sure, we have seen some perihanced, in part because tax laws treat interest odic spurts of activity in long-term bond marpayments as tax deductible whereas dividend kets, but only when long-term rates have dipped payments are not. Thus, as nominal interest rates and only because firms anticipated that further rise to reflect inflation expectations, the in- reductions were unlikely. Thus, reflecting both creased interest payments by corporations are investor preference and corporate caution, the partly offset by lower corporate taxes. In addi- emphasis on financing has substantially intion, equity financing becomes less attractive creased the importance of short-term to total because of the depressing impact of cost-push debt in nonfinancial corporations' balance inflation on corporate profitability and the higher sheets. capitalization rates required by investors in The implications of this development for cortranslating these profits into stock market val- porate vulnerability generally are hard to assess. ues. Since 1972 many stock prices have shown No doubt a high proportion of short-term debt little increase and price-earnings ratios have increases a firm's exposure to adverse developfallen to historically low levels. Therefore, cor- ments in financial markets because the debt must porations have come to rely more and more be rolled over at more frequent intervals. In the heavily on debt in financing their inflated needs. past, such exposure could present serious prob- As corporations have turned increasingly to lems even to highly rated firms during periods of debt markets for financing, the types and terms credit stringency because of institutional conof credit instruments being issued in these mar- straints that reduced the overall availability of kets have been in process of change. For the credit. In particular, low regulatory ceilings on most part, these changes reflect efforts by both rates permitted to be paid on time deposits borrowers and lenders to limit their exposure to sometimes resulted in disintermediation at banks unexpected shifts in securities prices and interest and other depository institutions when market rates. Investors, threatened by the unanticipated interest rates rose; this disintermediation effecerosion in the capital value of their investments, tively limited the supply of loanable funds at have become increasingly reluctant to commit these institutions. Usury ceilings also acted to funds for long periods. Instead they have pre- constrain lending in some cases. ferred short-term instruments in placing their Such constraints are of much less importance savings, so that returns would closely reflect in today's financial markets, however. Banks, current interest rates and the risks of deprecia- for example, are now able to bid competitively tion in market values would be largely avoided. for funds through the issuance of large certifi- Even longer-term securities, as well as term cates of deposit that pay market rates of interest. loans and residential mortgage contracts, now Thus, these institutional lenders can continue to often provide for adjustable rates or carry meet the needs of all business borrowers able shorter maturities. A major portion of new bond and willing to pay the going rate. Many busiissues coming to market currently have maturi- nesses now maintain substantial backup lines of ties of 15 years or less—a sharp contrast to the credit with banks, for which a fee is paid and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 Federal Reserve Bulletin • June 1982 which can be drawn on in times of need. The The denial of credit to established borrowers is existence of these lines and the increased confi- a step that institutional lenders generally try to dence by firms that they can borrow quickly if avoid. Banks and other creditors are acutely circumstances dictate have led to a reduction in aware of the problems facing their customers and the importance of liquid assets as a cushion have a strong interest in the continued operations against unexpected drains on cash flow. There- of firms whose long-term viability appears fore, a rather pronounced decline in the corpo- sound. Concessions by creditors—such as deferrate liquidity ratio, as shown in chart 3, does not rals of interest payments and extensions of matuseem to me as significant as it might appear.1 rity dates—have often been granted in recent However, the combination of high interest periods in efforts to work with debtors to overrates, an increased proportion of debt that can come temporary setbacks, and no doubt these quickly reflect these rates, and a heavier debt concessions will continue to be made for borrowburden generally have sharply increased the toll ers whose difficulties appear to be transitory. of interest charges on available earnings. For all But in the current environment, as economic nonfinancial corporations, the ratio of interest activity has remained weak and interest rates charges to total earnings has risen from less than high, the problems of a good many firms have 10 percent in 1965 to a new high of more than 40 come to seem too great to treat as a temporary percent in the first quarter of 1982. The peaks in setback. The rising number of bankruptcies are the chart correspond to periods of recession, and evidence of this, though I would note that the the sustained high ratio over the past two years rate of bankruptcy has risen less sharply because or so importantly reflects the weak profit per- of a very considerable growth in the total populaformance of business in general as well as the tion of business firms over the years. Of course further deterioration caused by the recent cycli- many of the firms facing difficulties today have cal decline. Nevertheless, the point is that inter- suffered from critical errors in planning or from est—unlike dividends—must be paid, whether domestic and international competition that has current earnings are sufficient to cover it or not. increased their vulnerability to adverse condi- Any sustained failure to cover interest charges tions. Nevertheless, in this environment a danger will likely lead over time to bankruptcy. exists that loss of confidence in the ability of Thus, one's concern about heavy debt service business to grow and thrive could have a seriouscharges becomes particularly acute when ad- ly depressing effect on investment and threaten verse developments affect a firm's product mar- the economy's future performance. These are ket and threaten its ability to generate profits and matters that should and do greatly concern the cash flow. Strained liquidity positions and high Federal Reserve Board and others in policymakinterest rates are very serious problems for such ing positions. companies because their ability to service their debt has declined and the longer-run outlook for earnings growth becomes more questionable. POLICY IMPLICATIONS The problems facing such businesses tend to be cumulative: struggling companies are likely to Let me, therefore, turn now to the implications have their credit ratings lowered, making it more of these developments for economic policy. You costly and difficult to obtain credit. The greater have asked me to address specifically two questhe extent of their borrowing in short-term mar- tions: First, how has the increase in corporate kets or through issuance of variable-rate instru- use of short-term credit affected the growth of ments, the more rapidly will their costs increase the monetary aggregates and what has this meant and the greater will be the risk that they will be for policy? Second, looking ahead, what moneunable to roll over maturing debt at any reason- tary or fiscal policy actions should be taken to able cost. reduce the likelihood of a further deterioration in corporate financial strength? With regard to the first question, the shift in 1. The charts to this statement are available on request business credit demands to short-term credit from Publications Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. markets has not been a significant problem for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress 359 the implementation of monetary policy. As you I would like to turn now to the more basic know, the Federal Reserve formulates its mone- question of whether there should be any change tary policy in terms of target ranges for the in the role that monetary policy plays to reduce growth rates of various measures of money over the likelihood of a further deterioration in corpoone-year spans. We also specify a range for bank rate liquidity. In my view, two lessons stand out credit growth thought to be consistent with mon- plainly from the experience of the past 15 years. ey growth objectives; this measure contains as a First, it has become abundantly clear that we principal component the business loans out- must conduct our affairs so as to bring inflation standing at commercial banks. For 1982, we have under control. Only then are interest rates likely indicated our expectation that Ml would grow to move to permanently lower levels, and only toward the upper end of a 2V2 to 5xh percent then will we see lasting improvement in the range, M2 within a 6 to 9 percent range, M3 in a financial health of the business community as a 6V2 to 9V2 percent range, and aggregate bank whole. The rise of inflation, and the uncertainties credit between 6 and 9 percent. and distortions that accompanied it, were impor- Business demands on banks for credit would tant factors that induced firms to structure their be unlikely to have any direct effect on Ml, a financing in ways that made them more vulneranarrowly defined aggregate that comprises only ble to economic setbacks. Absent substantial transaction balances. The public's holdings of progress on reducing inflation, I fear that we will such balances depend primarily on the level of see further gradual erosion of financial strength. nominal spending, on precautionary attitudes, Second, success in achieving this objective reand on the opportunity cost of holding assets that quires systematic restraint in the growth of monbear no or only a modest interest return; because ey and credit; inflation may originate from many of the externally determined nature of the depos- causes, but it can flourish over an extended it balances that are a part of Ml, banks cannot period only to the extent that it is accommodated use such balances as a flexible source of funds to by excessive monetary expansion. Thus, the meet business credit needs. The broader aggre- Federal Reserve has been and continues to be gates, on the other hand, are affected by the committed to a program of moderation in the shifting composition of debt instruments. M3 in growth of money and credit as we work to particular might be expected to show the effects restore an environment conducive to noninflaof greater short-term borrowing by business tionary growth. firms because it includes large certificates of Recently, encouraging signs have appeared deposit and other market instruments, which are that the national effort to slow inflation is bearing sold more or less aggressively by banks to fi- fruit. Price increases at both the consumer and nance credit demands exceeding core deposit the producer levels have been much reduced of growth. Both M2 and M3 include the shares of late, and there has been heartening—though still the rapidly growing money market mutual funds, only partial—progress in reducing the strong which invest considerable amounts in commer- upward trend in wages and other costs. Inflation cial paper and bank CDs, but these balances are expectations are far from broken, however, as is thought to represent mainly funds that otherwise reflected in the failure of nominal interest rates to would have been placed directly in M2- or M3- follow the inflation rate down. Market perceptype deposits. tions that the Federal Reserve was backing away While we pay careful attention to develop- from its commitment to financial discipline could ments in bank credit and the broad M3 monetary quickly undermine the progress that has been aggregate, however, the Federal Reserve typical- achieved to date. ly places a good deal more emphasis on the My final point concerns fiscal policy. Monebehavior of Ml and M2, both in operations and in tary restraint, especially when operating in isolapolicy determination. This is so because these tion, falls unevenly on different sectors of the variables are more susceptible to monetary con- economy, depending on their sensitivity to credit trol and also because they have exhibited a more conditions. In recent months, in my opinion, a dependable historical relationship with ultimate major cause of taut conditions in financial martarget variables—prices and output. kets, and especially the high level of long-term Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 Federal Reserve Bulletin • June 1982 interest rates, has been the current budget im- strated convincingly to the financial markets the passe. government's resolve to continue on with the To reach an accord on the budget is therefore fight against inflation. Though I normally do not crucial and, if it is to bring significant improve- engage in interest rate forecasts, I would venture ment in financial conditions, that accord must to say that this outcome should produce handoffer specific and credible reductions in federal some dividends in the form of lower levels of deficits to take the place of the large year-by- interest and restoration of a financial environyear increases now in prospect. Once this has ment much more conducive to the revitalization been accomplished, I think we will have demon- of American business. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

361 Announcements CAPITAL ADEQUACY CRITERIA agencies are using two principal capital measurements: (1) primary capital and (2) total capital. Primary capital consists of common stock, perpetual preferred The Federal Reserve Board has made public the stock, capital surplus, undivided profits, reserves for criteria for determining whether debt securities contingencies and other capital reserves, mandatory issued by state member banks and bank holding convertible instruments, and the allowance for possicompanies with a mandatory requirement for ble loan losses. Total capital includes the primary capital components plus limited life preferred stock future conversion to equity can qualify as priand qualifying subordinated notes and debentures. mary capital in assessing capital adequacy. As indicated, one of the components of primary The Board will begin immediately to apply capital is mandatory convertible securities. Historicalthese criteria, which also have been adopted for ly, banking organizations have issued mandatory connational banks by the Office of the Comptroller vertible securities only on rare occasions. Recently, a sizable amount of securities sold were designed to of the Currency, to mandatory convertible issues qualify as mandatory convertible securities. A number of state member banks and bank holding compaof banking organizations have expressed interest in nies. However, the Board asked for comment on marketing similar securities and have inquired as to the criteria, to be submitted to the Secretary of whether the terms and conditions of their proposals the Board by June 24, 1982. Any changes subse- would qualify the issue for regulatory treatment as part of the institution's primary capital. In view of this quently made in the criteria would apply to interest, the Federal Reserve and the Office of the securities issued after the revision. Comptroller of the Currency have developed a set of The Board and the Comptroller earlier had criteria that will be applied in determining whether a adopted guidelines for assessing bank and bank particular issue qualifies as primary capital. In develholding company capital adequacy to be used by oping the criteria, the agencies wish to stress that the principal determinant is the permanence of the funds the two agencies in the examination and superviand the certainty with which the debt issue will be sion of financial institutions they supervise. The replaced by permanent equity. In this respect, there guidelines recognized the following as primary have thus far been two basic approaches to the concapital: common stock, perpetual preferred cept of mandatory convertible securities. The first is a stock, capital surplus, undivided profits, re- so-called equity note that obligates the holder of the note to purchase a like amount of stock in the issuing serves for contingencies and other capital reinstitution. The second involves a note that obligates serves, the allowance for possible loan losses, the issuer to sell stock in sufficient amounts to replace and mandatory convertible instruments. The cri- the debt obligation. In determining whether securities teria now issued are meant to clarify the charac- qualify as primary capital, the following criteria will be teristics that mandatory convertible issues must applied. have if they are to be included in primary capital. The Board stressed that any organization that Securities with mandatory stock purchase now has a capital deficiency should regard the contracts sale of mandatory convertible securities as making up for the deficiency and not as the basis for The securities must mature in 12 years or less. additional leverage. A stock purchase contract can be separated from a The criteria are as follows: security and held separately only if the holder of the contract provides sufficient collateral to the issuer, or to an independent trustee for the benefit of the issuer, On December 17, 1981, the Federal Reserve and the to assure performance under the contract.1 Office of the Comptroller of the Currency issued capital adequacy guidelines that are now being used by 1. Collateral is defined as cash or certificates of deposit; these agencies in assessing the capital of well-managed U.S. government securities that will mature before maturity national banks, state member banks, and bank holding of the equity contract and that have a par or maturity value at companies. In implementing this capital program, the least equal to the amount of the holder's obligation under the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 Federal Reserve Bulletin • June 1982 Securities payable from sale of common or NOMINATIONS TO perpetual preferred stock CONSUMER ADVISORY COUNCIL The securities must mature in 12 years or less. The Federal Reserve Board has announced that The securities indenture must contain the following: it is seeking nominations of qualified individuals 1. The issuer of the securities will establish a fund (identifiable from the records of the bank or with a for 13 appointments to its Consumer Advisory separate trustee) solely from the sale of common or Council, to replace members whose terms expire perpetual preferred stock. This fund will be the sole on December 31, 1982. source of repayment of the securities. Nominations should be submitted in writing to 2. By the time that one-third of the life of the Dolores S. Smith, Assistant Director, Division of securities has run, the issuer must have paid into the fund from the sale of common or perpetual preferred Consumer and Community Affairs, Board of stock an amount equal to one-third of the original Governors of the Federal Reserve System, principal of the securities. By the time that two-thirds Washington, D.C. 20551, and must be received of the life of the securities has run, the issuer must no later than August 2, 1982. Nominations have paid into the fund from the sale of common or should include the name, address, and telephone perpetual preferred stock an amount equal to twothirds of the original principal of the securities. The number of the nominee; past and present posiissuer must have paid into the fund from the sale of tions held; and special knowledge, interests, and common or perpetual preferred stock an amount equal experience related to consumer financial matto the final one-third of principal of the securities at ters. least 60 days prior to the maturity of the securities. The Consumer Advisory Council was estab- If a security is issued by a subsidiary of a bank or bank holding company, any guaranty of the principal lished by the Congress in 1976, at the suggestion by that subsidiary's parent bank or bank holding of the Board, to advise the Board on the exercise company must be subordinate to the same degree as of its duties under the Consumer Credit Protecthe issue and limited to repayment of the principal tion Act and on other consumer-related matters. amount of the note at its final maturity. The funded The Council meets four times a year. portions of the securities will be deducted from primary capital to avoid double counting. If the issuer fails to meet any of these periodic funding requirements, its supervisor immediately will cease to treat REGULATIONS G, T, AND U: the unfunded securities as primary capital. AMENDMENTS General provisions applicable to any type of The Federal Reserve Board on May 13, 1982, mandatory convertible issues adopted amendments to its margin regulations that change the criteria for inclusion on the The aggregate amount of mandatory convertible secu- Board's list of stocks traded over the counter rities must not exceed 20 percent of primary capital (OTC list). The regulations are as follows: G other than mandatory convertible securities. (Securities Credit by Persons Other than Banks, The issuer may redeem securities before maturity Brokers, or Dealers); T (Credit by Brokers and only with the proceeds of the sale of common or perpetual preferred stock of the bank or bank holding Dealers); and U (Credit by Banks for the Purpose company or with the approval of its primary supervi- of Purchasing or Carrying Margin Stocks). sor. Inclusion of a stock on this list enables brokers The holder of the security cannot accelerate the and dealers to lend on the stock in conformance payment of principal except in the event of bankruptcy, insolvency, or reorganization. with the Board's margin requirements. About The security must be subordinate in right of pay- 1,500 stocks are on the Board's OTC list. ment to all senior indebtedness of the issuer. In the Further, the Board decided that future changes event that the proceeds of the security are reloaned to in the OTC list, which is updated three times a an affiliate, the loan must be subordinated to the same year, will become effective two weeks after degree as the original issue. publication rather than immediately. The following changes were adopted by the stock purchase contract; standby letters of credit issued by a Board: U.S. bank that is not an affiliate of the issuer; or other 1. Inclusion on the list of eligible foreign secucollateral as may be designated from time to time by the regulators. rities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 363 2. Setting of mandatory price and capital crite- vised and proposed for further comment, they ria for determining eligibility for the OTC list are the following: (formerly, to be eligible, stocks could satisfy any 1. An interpretation concerning the use of two of three criteria: price, capital, or market judgmental and credit scoring systems in the value). treatment of income derived from alimony, child 3. Reduction of requirements for initial listing support, separate maintenance, part-time emto a capital requirement of $4 million (rather than ployment, retirement benefits, or public assis- $5 million), and the requirement for the number tance under the regulation's requirement forof shares held publicly lowered to 400,000 (rather bidding exclusion of such income from than 500,000). consideration. 4. Reduction of requirements for continued 2. An interpretation concerning the selection listing to capital of $1 million (rather than $2.5 and disclosure of reasons for adverse action on a million) and a listed price of $2 (rather than $5). credit application. Stocks that no longer meet eligibility require- At the same time the Board proposed to withments under the new criteria for listing on the draw possible amendments to the business credit Board's OTC list will be retained on the list for provisions of Regulation B that were first pubtwo years. The Board believes the revisions lished for comment in late 1978. reflect changes in stock market conditions and exchange practices since the last major revision of the criteria in 1976. CHANGES IN BOARD STAFF The Board of Governors has announced the REGULATION T: AMENDMENT following official staff actions. William R. Jones appointed Manager, Opera- The Federal Reserve Board has amended its tions Review Program, Office of Board Mem- Regulation T (Credit by Brokers and Dealers) to bers, effective July 12, 1982. Mr. Jones replaces broaden the types of collateral against which James Stull, who has joined the Federal Reserve brokers and dealers may borrow and lend securi- Bank of Dallas. Assigned to the Division of ties, effective May 17, 1982. Research and Statistics since coming to the The revision would permit brokers and dealers Board in May 1973, Mr. Jones received his Ph.D. to use as collateral letters of credit issued by from the University of Maryland. federally insured banks, U.S. government secu- Sidney M. Sussan appointed Assistant Direcrities, certain bank certificates of deposit and tor, Division of Banking Supervision and Regulabankers acceptances, and letters of credit from tion, effective May 20, 1982. Mr. Sussan, who foreign banks that have filed a specified agree- has been at the Board since 1971, has a B.S. and ment with the Board. Previously, brokers and an M.B.A. from the University of Maryland and dealers were able to borrow and lend securities has also attended the Stonier Graduate School of only against cash collateral. Banking. PROPOSED ACTIONS SYSTEM MEMBERSHIP: ADMISSION OF STATE BANKS The Federal Reserve Board has asked for public comment on two proposed interpretations of The following banks were admitted to member- Regulation B (Equal Credit Opportunity) and on ship in the Federal Reserve System during the the proposed withdrawal of three previously period April 11 through May 10, 1982: proposed amendments to the regulation. The Board requested comment by July 1, 1982. Texas The interpretations concern credit scoring and Grand Prairie First State Bank are revisions of previous proposals following Wyoming staff assessment of comment received. As re- Glenrock Security Bank of Glenrock Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 Record of Policy Actions of the Federal Open Market Committee Meeting Held on retail sales increased in February March 29-30, 1982 after having declined in January. Unit sales of new domestic automo- 1. Domestic Policy Directive biles rose to an annual rate of 6.2 The information reviewed at this million in February, buoyed by remeeting suggested that real GNP, bates and other price concessions; which had declined at an annual rate unit sales dropped in the first few of 4!/2 percent in the fourth quarter of weeks of March despite the continu- 1981, fell appreciably further in the ation of purchase-incentive profirst quarter of this year. However, grams, but remained above the dethe level of final purchases in real pressed fourth-quarter rate. terms was sustained, and the con- The Department of Commerce traction in activity apparently mod- survey of business spending plans erated during the quarter. Average taken in January and February sugprices, as measured by the fixed- gested that current-dollar expendiweight price index for gross domes- tures for plant and equipment in 1982 tic business product, were estimated would be about IVA percent greater to have risen much less than the than in 1981. The results implied a annual rate of 7.5 percent in the year-to-year decline of about 1 perpreceding quarter. cent in real terms. The index of industrial production Private housing starts edged up in rose 1.6 percent in February, after a January and February from their undecline of 2.5 percent in January that usually depressed pace in the fourth was accounted for partly by severe quarter of 1981, but the annual rate winter weather. Although curtail- in February remained less than 1 ments in output continued early this million units for the seventh consecyear, the rate of decline in industrial utive month. Sales of new and existproduction from December to Feb- ing houses fell in January, reflecting ruary was notably smaller than in the the adverse weather conditions in last four months of 1981. many areas of the country in addi- Like industrial production, non- tion to the high level of mortgage farm payroll employment in Febru- interest rates; sales of existing ary recovered some of its January homes picked up in February, but decline. Over the two months the sales of new homes declined markaverage monthly decline amounted edly further. to a little less than 100,000, com- The rise in both producer and conpared with an average of about sumer prices moderated substantial- 300,000 in the fourth quarter. The ly in the first two months of the year. unemployment rate in February, at The producer price index for fin- 8.8 percent, was the same as in De- ished goods declined 0.1 percent in cember. February, after a rise of 0.4 percent The nominal value of retail sales, in January. Reductions in energy also distorted in January by the un- prices and rebates on motor vehicles usually severe weather, rebounded contributed to the February decline in February to about the level in in producer prices and to a decelera- December. Almost all categories of tion in consumer prices as well. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 365 consumer price index rose only 0.3 some decline in Ml, which would be percent and 0.2 percent in January associated with a faster return to its and February respectively. The rise longer-run range, would be acceptin the index of average hourly earn- able in the context of reduced presings over the first two months of the sure in the money market. The interyear remained at a reduced pace. meeting range for the federal funds In foreign exchange markets the rate, which provides a mechanism trade-weighted value of the dollar for initiating consultation of the against major foreign currencies rose Committee, was set at 12 to 16 perabout 4 percent further in February cent. and March, partly reflecting a wid- After having grown rapidly for ening of the differential between three months, Ml declined at an U.S. and foreign interest rates dur- annual rate of about VA percent in ing much of the intermeeting inter- February and expanded only a little val. However, the differential nar- in early March. A substantial conrowed somewhat toward the end of traction in demand deposits accountthe period. Monetary authorities of ed for the decline in February, as some foreign countries intervened flows into other checkable deposits on a substantial scale to resist the continued strong. Growth of M2 depreciation of their currencies. The slowed to an annual rate of AXU per- U.S. foreign trade deficit in January cent in February, reflecting a slackand February was somewhat less on ening of the expansion in its nonaverage than in the fourth quarter, transaction component as well as the reflecting declines in imports of both decline in Ml, but partial data sugoil and non-oil products. Exports gested that growth accelerated in also declined further from the March. fourth-quarter rate. Nonborrowed reserves declined At its meeting on February 1-2, substantially in February and then 1982, the Committee had adopted turned up in March; in the statement the following ranges for growth of week ending March 24, such rethe monetary aggregates over the serves remained somewhat below period from the fourth quarter of the average for the month of Janu- 1981 to the fourth quarter of 1982: ary. Borrowings from Federal Re- Ml, 2Vi to 5Vi percent; M2, 6 to 9 serve Banks for purposes of adjustpercent; and M3, 6V2 to 9Vz percent. ing reserve positions averaged a The associated range for bank credit little less than $1.1 billion in the four was 6 to 9 percent. statement weeks ending March 24 At the February meeting, the compared with an average of $1.2 Committee recognized that rapid billion in four weeks ending January monetary growth over the recent 27, although such borrowings avermonths had placed both Ml and M2 aged nearly $1.5 billion in the interin January above the ranges adopted vening four weeks. for growth over the year. Conse- The federal funds rate, which had quently, the Committee had also de- been about 14 percent in the days cided that open market operations in preceding the February meeting, the period until this meeting should generally fluctuated in a range of be directed toward behavior of re- 133/4 to 15V2 percent during the subserve aggregates over the balance of sequent intermeeting period. Most the first quarter consistent with other short-term market interest bringing growth of Ml and M2 over rates declined Vi to 1 percentage time into their longer-run target point on balance over the intermeetranges. For the period from January ing interval and long-term yields fell to March, the Committee sought no about V2 to 3/4 percentage point. The further growth in Ml and growth in prime rate charged by most commer- M2 at an annual rate of around 8 cial banks on short-term business percent. It was also agreed that loans, which had been raised from Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 Federal Reserve Bulletin • June 1982 153/4 to I6I/2 percent on February 2, sumer expenditures and overall outwas unchanged during the remainder lays for plant and equipment. Moreof the intermeeting period. Average over, there was a general feeling that rates on new commitments for fixed- the recovery could be more rerate home mortgage loans moved strained than in earlier cycles, partly down nearly Vi percentage point to because financial stringency and about 17 percent. high interest rates had prevailed for Total credit outstanding at U.S. so long. With respect to inflation, commercial banks, adjusted for progress recently had been greater shifts of assets to IBFs, expanded at than expected, and some further rean average annual rate of about 11 duction in the underlying trend of percent in January and February, costs and prices was thought likely; the same as in December. Growth in current price indicators were expecttotal loans picked up in February, ed to show particularly small inand expansion in business loans con- creases for some months. tinued sizable in both months. Issu- The Committee considered objecance of commercial paper by nonfi- tives for monetary growth over the nancial institutions was quite strong period from March to June in light of in February. several circumstances bearing on the Staff projections presented at this recent and prospective behavior of meeting suggested that real GNP the monetary aggregates. It apwould begin to recover in the second peared that growth of both Ml and quarter and would expand moderate- M2 from January to March would be ly over the balance of 1982. The close to the rates that the Committee unemployment rate was expected to had specified for that period. Conreach a peak in the second quarter, sistent with the targets established while inflation, as measured by the for the year, however, slower fixed-weight price index for gross growth than in the first quarter as a domestic business product, was pro- whole would be needed in the rejected to slow somewhat further maining quarters. The level of M2 in over the year. March appeared close to the upper Views of Committee members end of its longer-run range. concerning the most probable direc- A staff analysis suggested that the tion of economic activity and the demand for money in the three behavior of prices in the remaining months through June might be exthree quarters of 1982 generally dif- pected to moderate significantly fered little from the staff projections, from its growth in the first quarter. but several members emphasized the Growth of M1 on average in the first unusual uncertainties that could pro- quarter had been considerably greatduce a different result. The prospec- er than would have been predicted tive cut in federal income taxes at on the basis of the actual behavior of midyear and the current expansion nominal GNP and interest rates; the in defense orders and outlays, to- income velocity of Ml had declined gether with a reduction or a reversal very sharply after a small decline in of inventory liquidation, were ex- the last quarter of 1981. Velocity pected to contribute to economic declines of this magnitude and durarecovery before long; but whether tion have been rare in the postwar recovery would begin as early as in period, and they were particularly the second quarter was questioned, unusual in the absence of declines in in part because a number of sensitive short-term interest rates. indicators of activity had continued The great bulk of the first-quarter to point to weakness. Concern was growth of Ml had occurred in NOW also expressed that continuing dete- accounts, suggesting that individuals rioration in both agriculture and non- wished to hold increased liquid balagricultural industries and regions ances in an environment of considermight dampen some types of con- able uncertainty about the prospects Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 44 for economic activity and interest that, while aiming at a second-quarrates. That interpretation was sup- ter deceleration in monetary growth, ported by renewed growth over re- allowance would need to be made cent months in highly liquid savings for some bulge of growth in April. deposits that had relatively low Given the uncertainties about the yields. In the course of the second near-term economic prospects as quarter, the accumulated liquidity well as about the technical and other balances might be drawn down to factors affecting the monetary aggresome extent, either for spending or gates, almost all members of the for investing in other assets, espe- Committee felt that it would be decially if the economy strengthened sirable to set a course for the second and uncertainties were reduced. quarter as a whole designed to per- Thus at some point, relatively slow mit modest growth of Ml, consistent growth of Ml, consistent with a fair- with moving toward the longer-run ly prompt return to its longer-run growth objective over a period of range, could be associated with a time. Considerable attention was substantial rise in velocity. Should paid to evaluating the significance of the recently increased preference for recent behavior of NOW accounts. liquidity be more enduring, some- In the Committee's decision, the what greater growth in Ml over time point was made that the growth of might be needed to foster economic Ml since October could be traced recovery. almost entirely to extraordinarily The task of judging the trend in rapid growth in NOW accounts. A Ml and of implementing monetary number of factors suggested that the policy in the period immediately growth of NOW accounts, as well as ahead would be complicated by the accompanying growth in savings problems involved in assessing the accounts, reflected a desire of indipattern of monetary growth during viduals to hold more highly liquid the early part of the second quarter. assets, at least temporarily, in the Calculation of seasonal adjustments light of uncertainties about economfor that part of the year is particular- ic activity and interest rates. Growth ly difficult because of large tax pay- in demand deposits, which are held ments, differences in the speed of by businesses as well as by individtheir processing, and uncertainties uals, had been sluggish. Moreover, about the size of tax refunds. The growth of the larger M2 aggregate, behavior of Ml is also affected by especially since December, apthe extent to which funds accumulat- peared generally in line with the ed in anticipation of tax payments Committee's expectations. are held in Ml deposits or, for exam- Liquid balances accumulated in ple, in money market mutual funds. NOW accounts might be drawn Seasonal factors allow for a large upon in the second quarter, but if rise in unadjusted Ml in April. How- they were not, an effort to return Ml ever, the computation of the season- to its longer-run range might imply a al factors for the month has been more restrictive policy than was incomplicated by the sharp variation tended or would be desirable. It was in growth patterns in April for the suggested that if individuals evipast two years and by the related denced a continuing desire to hold difficulties of isolating the impact of large liquid balances, the Committee such nonrecurring influences as the would need to consider the implicacredit control program in 1980 from tions of such a shift in liquidity prefpossible shifts in the seasonal influ- erence for its range of growth of Ml ences over time. Thus, inherent dif- over 1982. At the same time, it was ficulties in the seasonal adjustment noted that growth of Ml over a longprocess as well as the usual uncer- er period extending back into 1981 tainties related to large tax payments understated the expansion of transand refunds raised the possibility action balances to the extent that the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 Federal Reserve Bulletin • June 1982 accumulation of shares in money context of appreciably reduced presmarket mutual funds represented sures in the money market and relasuch balances. Partly for that rea- tive strength of other aggregates. son, some members suggested that a The intermeeting range for the federstronger effort to reduce growth of al funds rate, which provides a Ml would be desirable to maintain mechanism for initiating further conpressure for continuation of the re- sultation of the Committee, was set duction in the rate of inflation. at 12 to 16 percent. Considering the pattern of growth The following domestic policy diin the period ahead and the seasonal rective was issued to the Federal uncertainties, most members be- Reserve Bank of New York: lieved that the behavior of Ml in April should be evaluated partly in The information reviewed at this meetlight of the behavior of M2. Thus, for ing suggests that real GNP declined apexample, relatively rapid growth preciably further in the first quarter of of Ml in April should be more read- 1982 but that final purchases were susily accepted if M2 appeared to be tained and the contraction in activity moderated during the quarter; prices on growing at a pace consistent with the average rose much less rapidly than the Committee's expectations for in the preceding quarter. In January growth over the year. Should Ml weakness in activity was accentuated by growth in April be relatively rapid, unusually severe weather, and in February the nominal value of retail sales offsetting behavior in the ensuing rebounded while industrial production months would be expected. At the and nonfarm payroll employment recovsame time, sentiment was expressed ered part of their January declines. The for prompt efforts to contain an un- unemployment rate in February, at 8.8 due bulge in growth of Ml in April, percent, was unchanged from December. Although housing starts rose further on the grounds that the absence of in the first two months of the year, they such efforts would be interpreted as remained at a depressed level. The rise a weakening of the Committee's in both the consumer price index and the anti-inflationary stance and could producer price index for finished goods moderated substantially, and the adhave adverse consequences in longvance in the index of average hourly term bond markets. earnings on the average remained at a At the conclusion of the discus- reduced pace. sion, the Committee decided to seek The weighted average value of the behavior of reserve aggregates asso- dollar against major foreign currencies continued to rise strongly in February ciated with growth of Ml and M2 and March; foreign monetary authorities from March to June at annual rates intervened on a substantial scale to resist of about 3 percent and 8 percent the depreciation of their currencies. The respectively. It was understood that U.S. foreign trade deficit in January and most, if not all, of the expansion in February on the average was somewhat less than the fourth-quarter rate. Ml over the period might well occur Ml declined in February, after three in April, and within limits, an April months of rapid growth, and then inbulge in Ml alone should not be creased moderately in early March. strongly resisted. In any event, it Growth of M2 slowed appreciably in February, owing to a slackening of the was agreed that deviations from expansion in the nontransaction compothose targets should be evaluated in nent as well as to the decline in Ml. light of the probability that over the Short-term market interest rates and period, M2 would be less affected bond yields on balance have declined than Ml by deposit shifts related to since early February, and mortgage interest rates have edged down. the mid-April tax date and by The Federal Open Market Committee changes in the relative importance of seeks to foster monetary and financial NOW accounts as a savings vehicle. conditions that will help to reduce infla- Some shortfall in growth of Ml, con- tion, promote a resumption of growth in output on a sustainable basis, and consistent with progress toward the uptribute to a sustainable pattern of interper part of the range for the year as a national transactions. At its meeting in whole, would be acceptable in the early February, the Committee agreed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the FOMC 369 that its objectives would be furthered by consistent with some reduction in growth of Ml, M2, and M3 from the the unemployment rate, to sustain a fourth quarter of 1981 to the fourth quardegree of pressure for continuation ter of 1982 within ranges of 2Vi to 5'A percent, 6 to 9 percent, and 6Vi to 9V2 of the reduction in the underlying percent respectively. The associated rate of inflation. range for bank credit was 6 to 9 percent. In the short run, the Committee seeks behavior of reserve aggregates consis- 2. Review of Continuing tent with growth of Ml and M2 from Authorizations March to June at annual rates of about 3 percent and 8 percent respectively. The At this, the first regular meeting of Committee also noted that deviations the Federal Open Market Committee from these targets should be evaluated in light of the probability that M2 would be following the election of new memless affected over the period than Ml by bers from the Federal Reserve deposit shifts related to the tax date and Banks to serve for the year beginby changes in the relative importance of ning March 1, 1982, the Committee NOW accounts as a savings vehicle. Some shortfall in growth of Ml, consis- followed its customary practice of tent with progress toward the upper part reviewing all of its continuing authoof the range for the year as a whole, rizations and directives. The Comwould be acceptable in the context of mittee reaffirmed the authorization appreciably reduced pressures in the money market and relative strength of for domestic open market operaother aggregates. The Chairman may call tions, the authorization for foreign for Committee consultation if it appears currency operations, the foreign curto the Manager for Domestic Operations rency directive, and the procedural that pursuit of the monetary objectives instructions with respect to foreign and related reserve paths during the period before the next meeting is likely to be currency operations in the forms in associated with a federal funds rate per- which they were currently outstandsistently outside a range of 12 to 16 ing. percent. Votes for these actions: Messrs. Votes for this action: Messrs. Volcker, Solomon, Balles, Black, Volcker, Solomon, Balles, Ford, Ford, Gramley, Partee, Rice, Mrs. Gramley, Partee, Rice, Mrs. Teeters, Teeters, Messrs. Wallich and Winn. and Mr. Winn. Votes against this ac- Votes against these actions: None. tion: Messrs. Black and Wallich. In reviewing the authorization for Messrs. Black and Wallich dis- domestic open market operations, sented from this action because they the Committee took special note of favored specification of somewhat paragraph 3, which authorizes the lower rates for monetary growth Reserve Banks to engage in the lendfrom March to June than those ing of U.S. government securities adopted by the Committee, which held in the System Open Market would be associated with a relatively Account under such instructions as prompt return of Ml growth to its the Committee might specify from range for the year. Mr. Black be- time to time. That paragraph had lieved that continued growth of Ml been added to the authorization on above its longer-run range for any October 7, 1969, on the basis of a extended period would adversely af- judgment by the Committee that fect economic activity by exacerbat- such lending of securities was reaing inflationary expectations and sonably necessary to the effective weakening markets for longer-term conduct of open market operations securities; for that reason, he felt and to the implementation of open that it was particularly important to market policies, and on the underresist any surge in growth of Ml that standing that the authorization might develop in April. In Mr. Wal- would be reviewed periodically. At lich's opinion, it would be desirable this meeting the Committee conto restrain the pace of the prospec- curred in the judgment of the Managtive recovery in economic activity, er for Domestic Operations that the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 Federal Reserve Bulletin • June 1982 lending activity in question remained agency securities specified in parareasonably necessary and that the graph 1(a) of the authorization for authorization should remain in effect domestic open market operations, on a continuing basis, with the un- effective immediately, for the period derstanding that the manager would ending with the close of business on monitor the lending operation close- May 18, 1982. ly and would recommend discontinuing it in the event that it was no Votes for this action: Messrs. Volcker, Solomon, Balles, Black, longer reasonably necessary to the Gramley, Martin, Partee, Rice, Mrs. effective conduct of open market op- Teeters, Messrs. Wallich, Winn, and erations. Roos. Votes against this action: None. Mr. Roos voted as alternate for Mr. Ford. 3. Agreement with Treasury to Warehouse This action was taken on recom- Foreign Currencies mendation of the Manager for Do- At its meeting on January 17-18, mestic Operations. The Manager 1977, the Committee had agreed to a had advised that since the March suggestion by the Treasury that the meeting, large-scale net purchases of Federal Reserve undertake to securities had been undertaken to "warehouse" foreign currencies— counter the effects on member bank that is, to make spot purchases of reserves of increases in currency in foreign currencies from the Ex- circulation and in Treasury balances change Stabilization Fund and at Federal Reserve Banks. The simultaneously to make forward amount of these purchases was apsales of the same currencies at the proaching $3 billion, leaving no leesame exchange rate to the ESF. Pur- way for further purchases over the suant to that agreement, the Com- current intermeeting interval. It apmittee had agreed that the Federal peared likely that sizable additional Reserve would be prepared to ware- purchases would be required in the house for the Treasury or for the period ahead because of a projected ESF up to $5 billion of eligible for- further rise in Treasury balances aseign currencies. At this meeting the sociated with expansion in tax re- Committee reaffirmed the agreement ceipts. on the terms adopted on March 18, On April 26-27, the Committee 1980, with the understanding that it voted to approve an additional inwould be subject to annual review. crease of $1 billion, to $6 billion, in the intermeeting limit on changes in Votes for this action: Messrs. holdings of U.S. government and Volcker, Solomon, Balles, Black, Ford, Gramley, Partee, Rice, Mrs. federal agency securities, after the Teeters, Messrs. Wallich and Winn. Manager had advised that the rise in Votes against this action: None. Treasury balances at Federal Reserve Banks apparently would be considerably larger than anticipated 4. Authorization for Domestic earlier. Open Market Operations Votes for this action: Messrs. On April 13-14, 1982, members of Volcker, Solomon, Black, Martin, the Committee voted to increase Partee, Rice, Mrs. Teeters, Messrs. from $3 billion to $5 billion the limit Wallich, Winn, Guffey, and Roos. Votes against this action: None. Abon changes between Committee sent: Mr. Gramley. Messrs. Guffey meetings in System Account hold- and Roos voted as alternates for ings of U.S. government and federal Messrs. Balles and Ford respectively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

371 Legal Developments AMENDMENT TO REGULATION D nate alternative market value criterion and make the price and capital criteria mandatory, reduce the initial The Board of Governors has amended Regulation D— listing capital and publicly-held share criteria, and Reserve Requirements of Depository Institutions reduce the continued listing price and capital criteria. (12 CFR Part 204) to modify the reserve requirements These changes are the result of recent developments in on nonpersonal time deposits. This action was taken in the securities, particularly the OTC market, and staff light of the Depository Institution Deregulation Com- experience administering the OTC list. mittee's authorization of a new category of ceiling-free time deposit with an original maturity of VA years or Regulation G more which may be offered by depository institutions in negotiable form. Effective June 12, 1982, the Board amends Section This amendment is effective April 29, 1982. The first 207.5 of Regulation G (12 CFR Part 207) by revising reserve maintenance period to which the amendment paragraphs (d)(1), (4), and (7) through (9), and paraapplies commences May 13, 1982. graphs (e)(1), and (4) through (7) to read as follows: Part 204—Reserve Requirements of Depository Part 207—Securities Credit By Persons Other Institutions Than Banks, Brokers, Or Dealers Paragraph (a) of § 204.9 is revised to read as follows: Section 207.5—Supplement Section 204.9—Reserve requirement ratios ^^ *** (1) The stock is registered under section 12 of the (a) Reserve percentages. The following reserve ratios Act (15 U.S.C. 781), is issued by an insurance are prescribed for all depository institutions, Edge and company subject to section 12(g)(2)(G) (15 U.S.C. Agreement Corporations and United States branches 781(g)(2)(G)), is issued by a closed-end investment and agencies of foreign banks: management company subject to registration pursuant to section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8), is an American Depository Category Reserve Requirement Receipt of a foreign issuer whose securities are Net transaction accounts: registered under section 12 of the Act, or is a stock $0 to $26 million 3 pet of amount. of an issuer required to file reports under section Over $26 million $780,000 plus 12 pet of 15(d) of the Act (15 U.S.C. 780(d)), amount over $26 million. Nonpersonal time deposits: By original maturity (or notice period): (4) The issuer or a predecessor in interest has been in existence for at least three years, Less than 3'/2 years 3% 3Vz yrs or more 0% Eurocurrency liabilities 3% (7) There are 400,000 or more shares of such stock outstanding in addition to shares held beneficially by officers, directors, or beneficial owners of more than 10 per cent of the stock, AMENDMENTS TO REGULATIONS G, T, AND U (8) The minimum average bid price of such stock, as determined by the Board, is at least $5 per share, The Board of Governors is amending its criteria for and inclusion on the List of OTC Margin Stocks ("Over (9) The issuer has at least $4 million of capital, The Counter List"). These amendments will permit surplus, and undivided profits. inclusion of securities of certain foreign issuers, elimi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 Federal Reserve Bulletin • June 1982 (e) *** (1) The stock continues to be registered under sec- (7) There are 400,000 or more shares of such stock tion 12 of the Act (15 U.S.C. 781), or if issued by an outstanding in addition to shares held beneficially by insurance company such issuer continues to be officers, directors, or beneficial owners of more than subject to section 12(g)(2)(G) (15 U.S.C. 10 percent of the stock, 781(g)(2)(G)), or if issued by a closed-end invest- (8) The minimum average bid price of such stock, as ment management company such issuer continues determined by the Board, is at least $5 per share, to be subject to registration pursuant to section 8 of and the Investment Company Act of 1940 (15 U.S.C. (9) The issuer has at least $4 million of capital, 80a-8), is an American Depository Receipt of a surplus, and undivided profits. foreign issuer whose securities are registered under section 12 of the Act, or is a stock of an issuer ^ *** required to file reports under section 15(d) of the Act (1) The stock continues to be registered under sec- (15 U.S.C. 780(d)), tion 12 of the Act (15 U.S.C. 781), or if issued by an >fj % sf« # insurance company such issuer continues to be (4) Daily quotations for both bid and asked prices subject to section 12(g)(2)(G) (15 U.S.C. for the stock are continuously available to the 781(g)(2)(G)), or if issued by a closed-end investgeneral public, ment management company such issuer continues (5) There are 300,000 or more shares of such stock to be subject to registration pursuant to section 8 of outstanding in addition to shares held beneficially by the Investment Company Act of 1940 (15 U.S.C. officers, directors, or beneficial owners of more than 80a-8), is an American Depository Receipt of a 10 percent of the stock, foreign issuer whose securities are registered under (6) The minimum average bid price of such stocks, section 12 of the Act, or is a stock of an issuer as determined by the Board, is at least $2 per share, required to file reports under section 15(d) of the Act and (15 U.S.C. 780(d)), (7) The issuer has at least $1 million of capital, surplus, and undivided profits. (4) Daily quotations for both bid and asked prices for the stock are continuously available to the Regulation T general public, (5) There are 300,000 or more shares of such stock Effective June 12, 1982, the Board amends Section outstanding in addition to shares held beneficially by 220.8 of Regulation T (12 CFR Part 220) by revising officers, directors, or beneficial owners of more than paragraphs (h)(l)(4), and (7) through (9), and para- 10 percent of the stock, graphs (i)(l), and (4) through (7) to read as follows: (6) The minimum average bid price of such stocks, as determined by the Board, is at least $2 per share, Part 220—Credit By Brokers and Dealers and (7) The issuer has at least $1 million of capital, Section 220.8—Supplement surplus, and undivided profits. (h) *** Regulation U (1) The stock is registered under section 12 of the Act (15 U.S.C. 781), is issued by an insurance Effective June 12, 1982, the Board amends Section company subject to section 12(g)(2)(G) (15 U.S.C. 221.4 of Regulation U (12 CFR Part 221) by revising 781(g)(2)(G)), is issued by a closed-end investment paragraphs (d)(1), (4), and (7) through (9), and paramanagement company subject to registration pursu- graphs (e)(1), and (4) through (7) to read as follows: ant to section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8), is an American Depository Part 221—Credit by Banks for the Purpose of Receipt of a foreign issuer whose securities are Purchasing or Carrying Margin Stocks registered under section 12 of the Act, or is a stock of an issuer required to file reports under section Section 221.4—Supplement 15(d) of the Act (15 U.S.C. 780(d)), ^^ *** (4) The issuer or a predecessor in interest has been (1) The stock is registered under section 12 of the in existence for at least three years, Act (15 U.S.C. 781), is issued by an insurance Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 373 company subject to section 12(g)(2)(G) (15 U.S.C. AMENDMENT TO REGULATION H 781(g)(2)(G)), is issued by a closed-end investment management company subject to registration pursu- The Board of Governors has amended Regulation H— ant to section 8 of the Investment Company Act of Membership of State Banking Institutions in the Fed- 1940 (15 U.S.C. 80a-8), is an American Depository eral Reserve System, to conform a citation in the Receipt of a foreign issuer whose securities are footnote with regulatory changes adopted by the registered under section 12 of the Act, or is a stock Board. of an issuer required to file reports under section In 1979, the Board revised its regulations dealing 15(d) of the Act (15 U.S.C. 780(d)), with the foreign operations of member banks (Regulation M, 12 CFR Part 213) and foreign investment by bank holding companies (§ 225.4(f) of Regulation Y, (4) The issuer or a predecessor in interest has been 12 CFR 225.4(f))- These regulations have been comin existence for at least three years, bined in a comprehensive regulation entitled "International Banking Operations" and designated as Regulation K (12 CFR Part 211). (7) There are 400,000 or more shares of such stock Section 208.9(d) continues to cite Regulation M in outstanding in addition to shares held beneficially by reference to a definition that presently appears in officers, directors, or beneficial owners of more than § 211.2(f) of Regulation K (12 CFR 211.2(f)). Conse- 10 percent of the stock, quently, the Board has amended § 208.9(d) to conform (8) The minimum average bid price of such stock, as with this regulatory change. determined by the Board, is at least $5 per share, Effective April 28, 1982, the Board of Governors and amends Regulation H (12 CFR Part 208) as follows: (9) The issuer has at least $4 million of capital, surplus, and undivided profits. Part 208—Membership of State Banking Institutions in the Federal Reserve System Section 208.9—Establishment or maintenance (e) *** of branches (1) The stock continues to be registered under section 12 of the Act (15 U.S.C. 781), or if issued by an insurance company such issuer continues to be (d) Foreign branches. With prior Board approval, a subject to section 12(g)(2)(G) (15 U.S.C. member state bank having capital and surplus of 781(g)(2)(G)), or if issued by a closed-end invest- $1,000,000 or more may establish branches in "foreign ment management company such issuer continues countries," as defined in § 211.2(f) of Regulation K to be subject to registration pursuant to section 8 of (12 CFR 211.2(f)). If a member state bank has estabthe Investment Company Act of 1940 (15 U.S.C. lished a branch in such a country, it may, unless 80a-8), is an American Depository Receipt of a otherwise advised by the Board, establish other foreign issuer whose securities are registered under branches therein after 30 days' notice to the Board section 12 of the Act, or is a stock of an issuer with respect to each such branch. required to file reports under section 15(d) of the Act (15 U.S.C. 780(d)), AMENDMENT TO REGULATION T (4) Daily quotations for both bid and asked prices On November 10, 1981, the Board of Governors for the stock are continuously available to the published for comment a proposal to amend § 220.8(h) general public, Regulation T—Credit by Brokers and Dealers, to (5) There are 300,000 or more shares of such stock permit brokers and dealers to borrow and lend securioutstanding in addition to shares held beneficially by ties against letters of credit issued by banks insured by officers, directors, or beneficial owners of more than the Federal Deposit Insurance Corporation and 10 per cent of the stock, against U.S. government securities (46 FR 55533). The (6) The minimum average bid price of such stock, as existing rule requires a deposit of cash. determined by the Board, is at least $2 per share, The Board has adopted a modified version of its and November 10, 1981 proposal. (7) The issuer has at least $1 million of capital, Effective May 17, 1982, the board revises section surplus, and undivided profits. 220.6(h) of Regulation T (12 CFR Part 220) by revising it to read as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 Federal Reserve Bulletin • June 1982 Part 220—Credit By Brokers and Dealers accident and health insurance directly related to extensions of credit by Century's subsidiaries. Sun also Section 220.6—Certain technical details proposes to acquire Century Computer Services, Inc., Fort Lauderdale, Florida ("Century Computer Services"), and thereby engage in the activity of providing "(h) Borrowing and lending securities. Without re- bookkeeping or data processing services for the intergard to the other provisions of this part, a creditor may nal operations of Century and its subsidiaries and borrow or lend securities for the purpose of making storing and processing other banking, financial, or delivery of the securities in the case of short sales, related economic data, such as performing payroll, failure to receive securities required to be delivered, or accounts receivable or payable, or billing services. other similar situations. Each borrowing shall be se- These activities have been determined by the Board to cured by a deposit of one or more of the following: be closely related to banking (12 CFR §§ 225.4(a)(8) cash, securities issued or guaranteed by the United and (9)). States government or its agencies, negotiable bank Notice of these applications, affording opportunity certificates of deposit and bankers acceptances issued for interested persons to submit comments and views, by banking institutions in the United States and pay- has been given in accordance with sections 3 and 4 of able in the United States, or irrevocable letters of the act (46 Federal Register 47012 (1981)). The time for credit issued by a bank insured by the Federal Deposit filing comments and views has expired, and the Board Insurance Corporation or a foreign bank that has filed has considered the applications and all comments an agreement with the Board on Form F.R. T-2. Such received, including those of the Antitrust Division of deposit made with the lender of the securities shall the United States Department of Justice, and the have at all times a value at least equal to 100 per cent Association of Data Processing Service Organizations, of the market value of the securities borrowed, com- Arlington, Virginia ("ADAPSO"), in light of the facputed as of the close of the preceding business day." tors set forth in section 3(c) of the act (12 U.S.C. § 1842(c)), and the considerations specified in section 4(c)(8) of the act (12 U.S.C. § 1843(c)(8)). Sun, the third largest commercial banking organization in Florida, controls 15 subsidiary banks with BANK HOLDING COMPANY AND BANK MERGER aggregate deposits of $2.9 billion, which represent 7.3 ORDERS ISSUED BY THE BOARD OF GOVERNORS percent of total deposits in commercial banks in the state.1 Century, the eleventh largest commercial bank- Orders Issued Under Section 3 of Bank Holding ing organization in Florida, controls 11 subsidiary Company Act banks with aggregate deposits of approximately $917 million, which represent 2.3 percent of total deposits Sun Banks of Florida, Inc., in commercial banks in the state. Upon consummation Orlando, Florida of the proposal and all planned divestitures, Sun would remain the third largest banking organization in Flori- Order Approving Merger of Bank Holding da, and its share of total deposits in commercial banks Companies and Acquisition of C. B. I. Insurance in the state would increase to 8.8 percent. Agency, Inc. and Century Computer Services, Inc. In analyzing the effects on competition presented by a particular proposal, the Board begins by determining Sun Banks of Florida, Inc., Orlando, Florida ("Sun"), the relevant product and geographic market involved. a bank holding company within the meaning of the As Sun has noted in its application, the business of Bank Holding Company Act, has applied for the commercial banking is the relevant line of commerce Board's approval under section 3(a)(5) of the act for the purpose of assessing the effects of a proposed (12 U.S.C. § 1842(a)(5)) to merge with Century Banks, merger or acquisition involving commercial banking Inc., Fort Lauderdale, Florida ("Century"), also a organizations.2 bank holding company, under the charter and name of The delineation of the relevant geographic market or Sun. markets must correspond to commercial banking reali- Sun has also applied for the Board's approval under ty and must be economically significant.3 Applying section 4(c)(8) of the act (12 U.S.C. § 1843(c)(8)) and that principle to this case, the Board concludes that section 225.4(b)(2) of the Board's Regulation Y (12 CFR § 225.4(b)(2)), to acquire C. B. I. Insurance 1. Statewide banking data are as of September 30, 1981. Agency, Inc., Fort Lauderdale, Florida ("C. B. I. 2. United States v. Philadelphia National Bank, 374 U.S. 321, 356 (1963). Insurance"), and thereby engage in the activity of 3. See Brown Shoe Co. v. United States, 370 U.S. 294, 336-37 acting as agent or broker for the sale of credit life and (1962). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 375 Sun's proposed merger with Century should be ana- Gainesville Banking Market. In the Gainesville lyzed in terms of competitive effects in the individually banking market,7 Sun's banking subsidiary, Sun Bank delineated local banking markets where the various of Gainesville, Gainesville, Florida, is the second banks involved are either existing or probable future largest commercial banking organization and holds competitors. The Supreme Court has stated in cases $49.9 million in deposits, which represent 14.7 percent involving mergers between local banks operating in of deposits in commercial banks in the market.8 Centulocal markets, that the relevant geographic market ry's banking subsidiary in this market, Century Bank encompasses the area in which the banks involved of Gainesville, Gainesville, Florida ("Gainesville operate and to which their customers can practicably Bank"), is the seventh largest commercial banking turn for alternatives.4 organization and holds $18.7 million in deposits, which This proposal, however, presents issues regarding represent 5.5 percent of deposits in commercial banks possible anticompetitive effects associated with com- in the market. Upon consummation of the proposed binations of competing bank holding company systems merger, absent any planned divestiture, the four-firm that operate and market banking services and products concentration ratio in the Gainesville market would in broadly distributed geographic markets throughout increase from approximately 64.1 percent to approxithe state, including most of the significant economic mately 69.6 percent. Sun would remain the second areas within the state.5 Neither the courts nor the largest banking organization in the market and would Board have addressed the proper definition of the control about 20.2 percent of the total deposits in relevant geographic market in such a case. The Board commercial banks in the market. is reviewing the relevance and suitability of utilizing a Orlando Banking Market. In the Orlando banking statewide concept, in addition to traditional market market,9 Sun's banking subsidiary, Sun Bank, N.A., definitions based on the locations of the banks in- Orlando, Florida, is the largest commercial banking volved, in its evaluation of mergers of competing organization and holds $748.1 million in deposits, statewide banking organizations. The Supreme Court which represent 37.7 percent of deposits in commerhas recognized the existence of more than one relevant cial banks in the market. Century's banking subsidiary geographic market "in cases in which the acquired in this market, Century Bank of Orange County, firm markets its products or services on a local, Apopka, Florida ("Orange County Bank"), holds $52 regional, and national basis."6 million in deposits, which represent 2.3 percent of After carefully considering the facts of this case, the deposits in commercial banks in the market. Upon Board concludes that the record does not show that consummation of the proposed merger, absent any consummation of this proposal would result in a planned divestiture, the market's four-firm concentrasignificant increase in concentration of commercial tion ratio would increase from approximately 69.9 banking resources in the state or is otherwise likely to percent to approximately 72.2 percent. Sun would produce any substantial anticompetitive effects in the remain the largest banking organization in the market state. and would control about 40 percent of the total depos- The seven localized banking markets in which bank- its in commercial banks in the market. ing subsidiaries of both Sun and Century operate South Brevard County Banking Market. In the offices are the Gainesville, Orlando, South Brevard South Brevard County banking market,10 Sun's bank- County, Eastern Palm Beach County, Fort Myers, ing subsidiary, Sun First National Bank of Brevard Miami-Fort Lauderdale, and Pinellas County banking County, Melbourne, Florida, is the largest commercial markets. banking organization and holds $71.8 million in deposits, which represent 23.5 percent of deposits in commercial banks in the market. Century's banking sub- 4. See United States v. Philadelphia National Bank, 374 U.S. at 359. sidiary in this market, Century National Bank of 5. For example, most of Florida's major banking markets are Brevard, Melbourne, Florida ("Brevard Bank"), is served by subsidiaries of Sun and Century. Sun's 15 banking subsidiaries operate in 19 Florida banking markets, which contain approxi- the sixth largest commercial banking organization in mately 76 percent of the state's population. Banking subsidiaries of the market and holds $21 million in deposits, which Century operate in seven of these 19 markets, and also in two Florida represent 6.9 percent of deposits in commercial banks markets not currently served by Sun. Century has pursued an active expansion program and its plans for expansion in many Florida markets suggest a capacity to provide a growing competitive force in 7. The Gainesville banking market is approximated by Alachua the state. Sun's 113 staffed offices constitute the second largest office County, Florida. network in the state; and Sun operates the state's largest on-line 8. Banking data relating to the seven localized banking markets are automated teller machine ("ATM") system, consisting of over 100 as of June 30, 1980. machines. Century currently offers ATM services through certain of 9. The Orlando banking market is approximated by Orange County, its subsidiaries, and has stated its plan to offer ATMs in each of the Florida, and the southern portion of Seminole County, Florida. markets served by its subsidiaries during 1982. 10. The South Brevard County banking market is approximated by 6. United States v. Marine Bancorporation, 418 U.S. 602, 621 that part of Brevard County, Florida, south of the town of Bonaven- (1974). ture, Florida. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 Federal Reserve Bulletin • June 1982 in the market. As a result of the proposed merger, In view of the fact that Sun's application was filed absent any planned divestiture, the market's four-firm with the Board well before the Board's announcement concentration ratio would increase from approximate- of its divestiture policy and considering the proposed ly 78.0 percent to approximately 84.9 percent. Sun trust arrangement for the Orange County Bank, the would remain the largest banking organization in the Board concludes that the proposed sale of Orange market and would control about 30.4 percent of the County Bank will eliminate the substantial adverse total deposits in commercial banks in the market. effects on existing competition that Sun's merger with In the Board's view, the effect of the merger of the Century would otherwise produce in the Orlando banking subsidiaries of Sun and Century in the Gaines- banking market. ville, Orlando and South Brevard County banking Eastern Palm Beach County Banking Market. In the markets may be substantially to lessen existing compe- Eastern Palm Beach County banking market,14 Sun's tition, were Sun to retain Century's banking subsidiary banking subsidiary, Sun First National Bank of Palm in any of these markets after consummation of this Beach County, Delray Beach, Florida, is the seventh proposal. However, Sun has contracted to cause the largest commercial banking organization and holds transfer of Gainesville Bank to Flagship Banks, Inc., $142.4 million in deposits, which represent 5.9 percent Miami, Florida, and Brevard Bank to First Bankers of deposits in commercial banks in the market. Centu- Corporation of Florida, Pompano Beach, Florida. ry's banking subsidiary in this market, Century Na- Both of these proposed acquisitions have received the tional Bank of Palm Beach County, West Palm Beach, Federal Reserve's prior approval." Sun has commit- Florida, is one of the smallest of 27 banking organizated that both of these acquisitions will be consummat- tions in the market and holds $31 million in deposits, ed on or before the date of consummation of the which represent 1.1 percent of deposits in commercial proposed merger of Sun and Century. banks in the market. The market's four-firm concen- The proposed divestiture of Gainesville Bank and tration ratio is about 51.6 percent, and would not Brevard Bank conform to the Board's divestiture change as a result of this proposal. Upon consummapolicy as stated in its Order approving the acquisition tion of the proposal, Sun would become the fifth by Barnett Banks of Florida, Inc., Jacksonville, Flori- largest banking organization in the market, but its da, of First Marine Banks, Inc., Riviera Beach, Flori- share of total deposits in commercial banks in the da.12 The Board concludes that, in the circumstances market would only increase to slightly over 6.9 perof this case, the proposed sales of Gainesville Bank cent. and Brevard Bank, which will be consummated on or Fort Myers Banking Market. In the Fort Myers before consummation of Sun's proposed merger with Banking market,15 Sun's banking subsidiary, Sun Century, will eliminate the substantial adverse effects Bank/Southwest, Cape Coral, Florida ("Sun's Fort on existing competition that Sun's merger with Centu- Myers Bank"), is the second largest commercial bankry would otherwise produce in the Gainesville and ing organization and holds $172.7 million in deposits, South Brevard County banking markets. which represent 15.3 percent of deposits in commer- Sun has contracted to cause the transfer of Orange cial banks in the market. Century's banking subsidiary County Bank to Barnett Banks of Florida, Inc., Jack- in this market, Century Bank of Lee County, Lehigh sonville, Florida ("Barnett"). Sun has also committed Acres, Florida ("Century's Fort Myers Bank"), is the to cause the divestiture of Orange County Bank on a ninth largest commercial banking organization in the date no later than the date of the consummation of the market and holds $37 million in deposits, which repreproposed merger of Sun and Century. Barnett has sent 3.3 percent of deposits in commercial banks in the applied to the Comptroller of the Currency for prior market. The market's current four-firm concentration approval to acquire Orange County Bank. If Barnett ratio is about 72.8 percent, and upon consummation of does not receive regulatory approval within a suffi- this proposal would increase to approximately 76.1 cient time to allow its acquisition of Orange County percent. The Board notes that the market's four-firm Bank on or before the date of Sun's proposed merger with Century, Sun has committed that Orange County Bank would be transferred to independent trustees.13 approval is not obtained within six months, the trustees are directed to sell the shares of Orange County Bank. Sun has represented that the 11. 67 FEDERAL RESERVE BULLETIN 921 (1981) (Brevard Bank); 68 co-trustees of this trust will be Barnett, and Trust Company of FEDERAL RESERVE BULLETIN 73 (1982) (Gainesville Bank). Georgia, Inc., Atlanta, Georgia. 12. 68 FEDERAL RESERVE BULLETIN 190 (1982). See also InterFirst 14. The Eastern Palm Beach County banking market is approximat- Corporation, 68 FEDERAL RESERVE BULLETIN 243 (1982). ed by Palm Beach County, Florida, excluding the area surrounding the 13. The trust is for a period beginning no later than the date of the cities of Belle Glade and Pahokee, Florida. consummation of the Sun and Century merger and ending no later 15. The Fort Myers banking market is approximated by Lee than 31 days after such required regulatory approval is obtained. If County, Florida. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 377 concentration ratio has fallen from 84 percent in 1970 four-firm ratio would increase to approximately 43 to approximately 73 percent in 1980. Consummation of percent. the proposal would only marginally increase Sun's Pinellas County Banking Market. In the Pinellas deposit holdings and market share of deposits, and County banking market,19 Sun's banking subsidiary, would leave its market rank unchanged. Sun Bank/Suncoast, St. Petersburg, Florida, is the In the Board's view, the anticompetitive effects third largest commercial banking organization and associated with the proposal in the Fort Myers market holds $239 million in deposits, which represent 7.7 are mitigated by the particular geographic characteris- percent of deposits in commercial banks in the martics of the market, by the locations of Sun's Fort ket.20 Century's banking subsidiary in this market, Myers Bank and Century's Fort Myers Bank within Century First National Bank of Pinellas County, St. the market, and by the large number of commercial Petersburg, Florida ("Pinellas County Bank"), is the banking organizations already represented in the mar- sixth largest commercial banking organization and ket. For example, Century's Fort Myers Bank is holds $204.5 million in deposits, which represent 6.6 located on the eastern fringe of the market and is percent of deposits in commercial banks in the market. substantially surrounded by rural and largely unsettled Absent any planned divestiture, consummation of areas, which may reduce the extent to which it pro- this proposal would increase Sun's deposit holdings in vides active banking competition to other areas of the the market to about $443.5 million, and cause Sun to market.16 The Board also notes that there are no state become the largest commercial banking organization or federal barriers to entry into or expansion within the in the market, with approximately 14.4 percent of Fort Myers market.17 deposits in commercial banks in the market. However, Miami-Fort Lauderdale Banking Market. Sun main- the Pinellas County banking market is relatively untains two banking subsidiaries in the Miami-Fort Lau- concentrated, with a four-firm concentration ratio of derdale banking market:18 Sun Bank of Miami, Miami, 33.1 percent, and many of the largest Florida bank Florida, and Sun Bank/Broward, N.A., Fort Lauder- holding companies compete in this market. Upon dale, Florida. Together, these subsidiaries constitute consummation of this proposal, the concentration rathe sixth largest commercial banking organization in tio would increase to 39.7 percent. the market and hold $435.3 million in deposits, which On the basis of the above facts and other facts of represent 3.8 percent of deposits in commercial banks record, the Board concludes that the effects of conin the market. Century's banking subsidiary in the summation of the proposal on existing competition in market, Century National Bank of Broward, Fort the Eastern Palm Beach County, Fort Myers, Miami- Lauderdale, Florida, is the eighth largest commercial Fort Lauderdale, and Pinellas County banking marbanking organization and holds $375 million in depos- kets would not be substantially adverse. its, which represent 3.2 percent of deposits in commer- Sun has contracted to cause the transfer of Pinellas cial banks in the market. Consummation of this pro- County Bank to Royal Trust Bank Corp., Miami, posal would increase Sun's deposit holdings in the Florida ("Royal Trust"), to eliminate whatever antimarket to about $810.3 million, and Sun would become competitive effects this merger might otherwise prothe third largest banking organization in the market. duce in the Pinellas County market. Sun has commit- However, the Miami-Fort Lauderdale banking market ted to cause the divestiture of Pinellas County Bank on is relatively unconcentrated. The market's current a date no later than the date of the consummation of four-firm concentration ratio is approximately 41.2 the proposed merger of Sun and Century.21 percent and, upon consummation of the proposal, the With regard to probable future competition, Century is represented in two Florida banking markets, Pensa- 16. In addition, the Fort Myers market is divided from roughly southwest to northeast by the Caloosahatchee River. Sun's Fort Myers Bank is located in Coral Gables, Florida, a community south- 19. The Pinellas County banking market is approximated by Pinelwest of Fort Myers on the west bank of the river. Century's Fort las County, Florida. Myers Bank is located in Lehigh Acres, Florida, a community to the 20. The Board notes that the Pinellas County market contains 11 east of the river approximately 25 miles from the center of Cape Coral. savings and loan associations that hold $4.4 billion in deposits Thirteen commercial banking organizations are represented in the compared with $3.1 billion in deposits held by the 36 commercial market. These organizations together maintain 44 offices, and eight of banks in the market. the major organizations in the market are subsidiaries of large Florida 21. Royal Trust has applied to the Federal Reserve System for prior bank holding companies. approval to acquire Pinellas County Bank. If Royal Trust does not 17. Cf. Hartford National Corporation, 68 FEDERAL RESERVE receive regulatory approval within a sufficient time to allow its BULLETIN 242 (1982) (state law prohibited branching into subject acquisition of Pinellas County Bank on or before the date of Sun's market). proposed merger with Century, Sun has committed to transfer Pinellas 18. The Miami-Fort Lauderdale banking market is approximated by County Bank under terms and conditions similar to those regarding Dade and Broward Counties, Florida. the divestiture of Orange County Bank. (See note 13, supra.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 Federal Reserve Bulletin • June 1982 cola and Putnam County,22 in which Sun is not cur- essing services for the internal operations of Century rently represented. The Pensacola banking market is and its subsidiaries, and storing and processing other not highly concentrated, with a three-firm concentra- banking, financial, or related economic data, such as tion ratio of 42.2 percent. Century's subsidiary in the performing payroll, accounts receivable or payable, or Putnam County Banking market, Century Bank of billing services. The Board notes that it was previously Palatka, Palatka, Florida, is the third largest of three determined that the balance of public interest factors commercial banking organizations and holds deposits prescribed by section 4(c)(8) of the act favored approvof $19.6 million, representing 17.7 percent of deposits al of Century's earlier applications to engage in each of in commercial banks in the market. There appear to be these activities through C. B. I. Insurance and Centunumerous probable future entrants into the Putnam ry Computer Services.23 Nothing in the record of these County banking market, and in any event, the market applications suggests that Sun's acquisition of C. B. I. does not appear attractive for de novo entry. Insurance or Century Computer Services would alter Sun is represented in twelve Florida banking mar- that balance. Additionally, there is no substantial kets in which Century is not represented. Eight of evidence in the record that acquisition of either C. B. I. Insurance or Century Computer Services these markets are not highly concentrated. The rewould result in undue concentration of resources, maining four markets do not appear attractive for decreased or unfair competition, conflicts of interest, foothold or de novo entry and the Board cannot unsound banking practices, or other adverse effects on conclude, on the basis of this record, that Century is the public interest.24 Accordingly, the Board has dereasonably likely to enter any of these four markets by termined that the balance of public interest factors it alternative means. Accordingly, on the basis of the must consider under section 4(c)(8) of the act favors above and other facts of record, the Board concludes approval of the applications filed under that section. that consummation of the proposal would result in no significantly adverse effects upon probable future Based on the foregoing and other considerations competition in these markets. reflected in the record, the Board has determined that The financial and managerial resources of Sun, the applications under sections 3(a)(5) and 4(c)(8) are Century, and their subsidiaries are regarded as gener- approved.25 The merger of Sun and Century shall not ally satisfactory, and their future prospects appear be made before the thirtieth calendar day following the favorable. Accordingly, banking factors are consistent effective date of this Order, or later than three months with approval of the proposal. Consummation of this after the effective date of this Order unless such period proposal may enable the combined organization to be is extended for good cause by the Board or the Federal more successful in attracting the deposits and credit Reserve Bank of Atlanta, under delegated authority. business of large commercial enterprises engaged in Acquisition of the nonbank subsidiaries under section internationally related activities. In addition, Sun has 4(c)(8) is subject to the conditions set forth in section stated that the proposed merger would enable Sun to 225.4(c) of Regulation Y, and to the Board's authority provide significantly improved trust services to cus- to require such modification or termination of the tomers of subsidiaries of Sun and Century. Sun has activities of a holding company or any of its subsidiaries as the Board finds necessary to assure compliance also stated that consummation of the merger will allow with the provisions and purposes of the act and the Sun to offer various corporate cash management services to an extent not currently provided by either Sun or Century. Based upon all facts of record, including 23. The Federal Reserve Bank of Atlanta, pursuant to delegated the competitive aspects of Applicant's proposal, the authority, approved Century's applications to acquire the predecessor Board finds that convenience and needs consider- to Century Computer Services on May 1, 1974, and C. B. I. Insurance ations are consistent with approval. on March 18, 1979. 24. The Board notes that Sun also owns subsidiaries that engage in With respect to the applications by Sun submitted activities similar to those engaged in by C. B. I. Insurance and pursuant to section 4(c)(8) of the act, C. B. I. Insur- Century Computer Services. However, Century's nonbank subsidiarance is currently engaged in the activity of acting as ies, with the exception of the Jacksonville office of Century Computer Services, serve only Century's banking subsidiaries. With regard to agent or broker for the sale of credit life and accident the activities of Century Computer Services, the Board notes that and health insurance directly related to extensions of competitors engaging in these activities are not confined to the credit by Century's banking and nonbanking subsidiar- Jacksonville market and that the market share of Century Computer Services in that market is small. ies. Century Computer Services is currently engaged 25. The Board notes that this disposition is consistent with the in the activity of providing bookkeeping or data proc- recommendation of the Antitrust Division of the United States Department of Justice, which concluded that the proposed merger would not have a significantly adverse effect on competition, provided that 22. The Pensacola banking market is approximated by Santa Rosa the divestitures of Orlando Bank, Brevard Bank, and Gainesville and Escambia Counties, Florida, and the Putnam County banking Bank are effected with competitively suitable purchasers concurrently market is approximated by Putnam County, Florida. with consummation of the merger. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 379 Board's regulations and orders issued thereunder, or would exceed the current horizontal merger guidelines to prevent evasion thereof. of the United States Department of Justice, which the By order of the Board of Governors, effective Board has stated it would consider in its own analysis May 6, 1982. of existing competition. These factors indicate that a substantial amount of competition may be eliminated Voting for this action: Chairman Volcker and Governors by consummation of this proposal. Martin, Wallich, Partee, and Rice. Voting against this action: With respect to competition in Florida as a whole, I Governor Teeters. Absent and not voting: Governor Gramley. Governor Wallich abstained from consideration of the believe that consummation of the proposal would applications to acquire C. B. I. Insurance and Century Com- increase statewide concentration and substantially puter Services. lessen statewide competition. Century is a large, able, and aggressive bank holding company that constitutes (Signed) JAMES MCAFEE, a significant competitive force in the state. The record [SEAL] Associate Secretary of the Board. indicates that Century operates eleven banking subsidiaries in nine banking markets throughout Florida, Concurring Statement of Governor Rice most of which rank among the most economically important in the state. Century's plans for expansion I am voting to approve this application as submitted in many Florida markets demonstrate a capacity to because I do not regard the facts of this case, in light of provide a growing competitive force. Century has the current competitive structure of banking in Florida obtained approval to open additional branches in five and the size and market shares of the organizations broadly dispersed markets, has filed an application in a involved, as presenting sufficiently substantial antisixth market, and has stated its intention to file addicompetitive effects to warrant denial. However, I tional applications in five of Florida's fast growing share some of the concerns expressed in the Dissentmarkets. Consummation of this proposal eliminates ing Statement of Governor Teeters with respect to Century as a competitive force in Florida and is likely statewide concentration of banking resources. Furto substantially lessen competition in Florida. I believe thermore, I wish to emphasize my view that applicathat if the Board were to regularly approve applications involving combinations of bank holding company tions such as this, the ultimate effect would be the systems that operate and market their services on a elimination of all but a few large statewide banking statewide basis present significant issues regarding competitors. possible anticompetitive effects in the state as a whole In my view, the competitive effects of this proposal as well as localized markets. I believe the Board are not outweighed by considerations relating to the should carefully examine these issues in all cases in convenience and needs of the community to be served which they are presented, and that the Board should and accordingly, I would deny this application. consider developing a policy to address these concerns. May 6, 1982 May 6, 1982 Dissenting Statement of Governor Teeters Orders Issued Under Section 4 of Bank Holding Company Act I believe that consummation of Sun's acquisition and divestiture plan would tend to substantially lessen BankEast Corporation, competition in the Fort Myers banking market and the Manchester, New Hampshire State of Florida as a whole. In the Fort Myers market, Sun is the second largest Order Conditionally Approving Acquisition of commercial banking organization and holds about 15.3 Guaranty Savings Bank percent of the market's deposits, and Century is the ninth largest commercial banking organization and BankEast Corporation, Manchester, New Hampshire, holds about 3.3 percent of the market's deposits. a bank holding company within the meaning of the Century's bank in this market is a viable competitor Bank Holding Company Act, has applied for the that will be eliminated upon consummation of this Board's approval under section 4(c)(8) of the act proposal. In addition, upon consummation of this (12 U.S.C. § 1843(c)(8)) and section 225.4(b)(2) of the proposal, the market's four-firm concentration ratio Board's Regulation Y (12 CFR § 225.4(b)(2)) to acwould increase to 76.1 percent from 72.8 percent. A quire Portsmouth Trust Company, Portsmouth, New combination of competitors holding these market Hampshire ("Portsmouth"), an organization engaged shares in a market with this level of concentration in the activities of a guaranty savings bank in New Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 Federal Reserve Bulletin • June 1982 Hampshire.1 The Board has by order approved the lion, and one guaranty savings bank, Rochester Savacquisition of New Hampshire guaranty savings banks ings Bank and Trust Company with deposits of $127.5 by New Hampshire bank holding companies, deter- million, in the Portsmouth-Dover-Rochester banking mining that the operation of such an institution was market.5 In terms of Individuals, Partnerships and closely related to banking in New Hampshire.2 How- Corporations (IPC) time and savings deposits (held by ever, the operation of a guaranty savings bank has not all market depository institutions), BankEast ranks as been specified by the Board in section 225.4(a) of the second largest with an 11.1 percent market share. Regulation Y as permissible for bank holding compa- Portsmouth operates two offices in the Portsmouthnies. Dover-Rochester banking market where it ranks as Notice of the application, affording opportunity for sixth largest with a 5.0 percent market share. Thus, interested persons to submit comments and views, has consummation of the proposed transaction would been duly published. The time for filing comments and make BankEast the largest depository organization in views has expired and the Board has considered the the relevant market with 16.1 percent of IPC time and application and all comments received in light of the savings deposits in the market. factors set forth in section 4(c)(8) of the act (12 U.S.C. The Board has previously determined the operation § 1843(c)(8)). of a New Hampshire guaranty savings bank by a New BankEast (consolidated deposits of $360.5 million) Hampshire bank holding company to be so closely operates four commercial banks, two guaranty savings related to banking as to be a proper incident thereto. In banks, and a mortgage company.3 In terms of time and its 1975 approval of an application by Profile Banksavings deposits held by commercial banks and thrift shares, Inc., (later changed to Heritage Banks Inc., institutions in New Hampshire, BankEast ranks third and acquired by BankEast in March 1982) to acquire a with total time and savings deposits of $315.2 million guaranty savings bank, the Board found that, in view and a 5.3 percent statewide share.4 Portsmouth (de- of the similarity of services of savings banks and posits of $51.4 million) is a guaranty savings bank and commercial banks,6 the unique structural and competiranks 31st, with $52.0 million in time and savings tive situation in New Hampshire,7 and other relevant deposits and a 0.9 percent statewide share. Thus, factors in that case, the proposed activity was so affiliation would increase BankEast's statewide share closely related to banking in New Hampshire as to be a of time and savings deposits from 5.3 to 6.2 percent proper incident thereto.8 In 1980, the Board reaffirmed and BankEast would remain third largest in the state. this determination, although the Board noted that BankEast operates one commercial bank, First Na- since 1975 some modest changes in the structural and tional Bank of Rochester with deposits of $19.2 mil- competitive circumstances of New Hampshire had occurred.9 Finally, in January 1982, the Board again 1. A guaranty savings bank is essentially the same as a mutual confirmed this determination.10 Because no evidence savings bank except that the former is a stock institution. That is, the has been presented to show that banking conditions ownership of the equity interest in a guaranty savings bank is vested in have substantially changed in New Hampshire since the holders of the capital stock or special deposits. Under current law, guaranty savings banks may engage not only in typical savings bank the Board's consideration of this issue earlier this activities such as accepting time and savings deposits, acting as year, and because BankEast must limit Portsmouth's fiduciary, and dealing in real estate mortgage financing, but also in typical commercial bank activities including accepting demand depos- deposit-taking or commercial lending activities to reits and commercial lending activities that exceed those permissible for main under the nonbanking provisions of the Bank thirfts under federal statutes. Although BankEast does not intend to implement Portsmouth's demand deposit powers in the near future, Portsmouth does offer NOW accounts and has notified the state 5. The Portsmouth-Dover-Rochester banking market is approxisupervisor of its intention to engage in commercial lending as permit- mated by the Portsmouth-Dover-Rochester SMSA, plus the towns of ted under state law. The subject application has been accepted and Nottingham, Strafford, New Durham, Brookfield, Middleton, Milton, processed under section 4 of the act and is approved only on the and Wakefield, all in New Hampshire, and Lebanon, Maine. condition that Portsmouth limit its commercial lending activity to that 6. The Board noted that each of the main customer services offered currently permissible to thrift institutions under federal statute law. by guaranty savings banks (accepting time and savings deposits, 2. BankEast Corporation, 68 FEDERAL RESERVE BULLETIN 116 acting as a fiduciary and dealing in real estate mortgage financing) are (1982); First Financial Group, 66 FEDERAL RESERVE BULLETIN 594 generally offered by commercial banks. (1980); Heritage Banks, Inc., 66 FEDERAL RESERVE BULLETIN 590 7. The Board noted that guaranty savings banks are unique to New (1980); Profile Bankshares, Inc., 61 FEDERAL RESERVE BULLETIN 901 Hampshire and, of the six guaranty savings banks operating in that (1975). state, three were affiliated with commercial banks. 3. All financial data are as of June 30, 1981, and include acquisitions 8. Profile Bankshares, Inc., 61 FEDERAL RESERVE BULLETIN 901 as of March 1, 1982. (1975). In contrast, in the absence of such an unusual situation, the 4. In view of the fact that commercial banks are authorized to olfer Board has regarded the operation of a thrift institution as a proper products and services offered by thrifts and do in fact compete to an incident to banking only where compelling public benefits, unachievextent for the market's time and savings deposits (commercial banks able by other means, are present. hold 24.4 percent of all IPC time and savings deposits in the market), 9. First Financial Group, 66 FEDERAL RESERVE BULLETIN 594 the competitive analysis in this case has been made using market (1980); Heritage Banks Inc., 66 FEDERAL RESERVE BULLETIN 590 percentages of IPC time and savings deposits. This analysis reflects a (1980). product market including all thrift institutions and further takes into 10. BankEast Corporation, 68 FEDERAL RESERVE BULLETIN 116 account the competitive impact of commercial banks on thrifts. (1982). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 381 Holding Company Act, the Board confirms its finding effects, the Board approved those previous cases, but that the operation of a guaranty savings bank may be imposed certain conditions barring the two types of so closely related to banking in New Hampshire as to institutions from conducting tandem operations. The be a proper incident thereto. Notwithstanding this Regulation Q interest rate differential on account categeneral finding, the Board must also consider the gories in existence in December 1975 remains in effect particular facts of this case to determine whether the until the Depository Institutions Deregulation Comproposed acquisition is a proper incident to banking, mittee eliminates rate ceilings, or until March 31,1986. that is, whether it "can reasonably be expected to In addition, it does not appear that relevant considerproduce benefits to the public, such as greater conve- ations have changed since January 1982 when the nience, increased competition, or gains in efficiency, Board last reiterated its policy against tandem operathat outweigh possible adverse effect such as undue tions of thrifts and commercial banks. Accordingly, concentration of resources, decreased or unfair com- the Board believes that the following conditions must petition, conflicts of interest, or unsound banking be imposed in connection with its approval of this practices." application: 1) BankEast will not establish any com- Consummation of the proposed transaction would mercial bank facility within the service area of any not appear to have any significantly adverse effects office of Portsmouth without Board consent; and 2) upon the concentration of banking resources in New BankEast will not shift assets or liabilities from Ports- Hampshire. However, BankEast and Portsmouth are mouth to any other subsidiary, or from any other competitors in the Portsmouth-Dover-Rochester subsidiary to Portsmouth.12 banking market. The acquisition by BankEast, with an Except as discussed above, the Board has found 11.1 percent market share, of Portsmouth, with a 5.0 that no other adverse effects are likely to result from percent market share, would give BankEast 16.1 per- consummation of this proposal. In addition, it appears cent of the market's IPC time and savings deposits, that the proposed affiliation would produce several and would increase its rank in the market from second public benefits including providing Portsmouth with to first. The anticompetitive effects evidenced by better access to capital, enhancing Portsmouth's abilimarket share data have been found by the Board to be ty to compete for retail loans and deposits, introducing substantially mitigated by the following factors: 1) the secondary mortgage capabilities to Portsmouth, estab- Portsmouth-Dover-Rochester market is not highly lishing ATMs for Portsmouth, and offering counseling concentrated and has shown deconcentration over services to municipalities in the market. time; 2) existing offices of BankEast and Portsmouth Based upon the foregoing and other considerations are located at the extreme ends of the newly defined reflected in the record, the Board has determined that market, approximately 20 road miles through a toll- the balance of public interest factors the Board is way; and 3) after affiliation, 14 commercial banking required to consider under section 4(c)(8) is favorable organizations (including the three largest in New provided that BankEast and Portsmouth abide by the Hampshire and two of the three largest in Maine), 11 conditions set forth herein. Accordingly, the applicasavings banks and savings and loan associations, and tion is hereby conditionally approved, subject to the 14 credit unions would remain in the market. Based limitations described above relating to the commercial upon the above and other facts of record, the Board lending activities of Portsmouth, and restrictions relatconcludes that consummation of this proposal would ing to tandem operations between BankEast's comnot result in any serious decrease in competition, or mercial and guaranty savings bank subsidiaries. This undue concentration of resources. determination is further subject to the conditions set In considering previous applications under the act forth in section 225.4(c) of Regulation Y and to the involving the affiliation of commercial banks and guar- Board's authority to require such modification or anty savings banks in New Hampshire in 1980 and termination of the activities of a holding company or 1982, the Board noted the potential for serious con- any of its subsidiaries as the Board finds necessary to flicts of interests, unfair competition, and circumven- assure compliance with the provisions and purposes of tion of the Regulation Q interest rate differential, the act and the Board's regulations and orders issued which might arise from the operation of these two thereunder, or to prevent evasion thereof. types of institutions at nearby locations or in close The transaction shall be made not later than three mutual support of each other ("tandem opera- months after the effective date of this Order, unless tions").11 In order to limit these potentially adverse 12. These conditions remain effective so long as these institutions, or their successors remain affiliated. However, BankEast may apply 11. BankEast Corporation, 68 FEDERAL RESERVE BULLETIN 116 for relief from these conditions when the Regulation Q interest rate (1982); First Financial Group, 66 FEDERAL RESERVE BULLETIN 594 differential has been eliminated, or if the Board changes its policy (1980). regarding tandem operations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 Federal Reserve Bulletin • June 1982 such period is extended for good cause by the Board or nies, if it is of the opinion that the proposed activity in by the Federal Reserve Bank of Boston. the circumstances surrounding a particular case is By Order of the Board of Governors effective closely related to banking or managing or controlling May 10, 1982. banks. The regulation further provides that the Board will publish in the Federal Register a notice of oppor- Voting for this action: Vice Chairman Martin and Gover- tunity for hearing regarding the proposed activity only nors Partee, Teeters, and Gramley. Absent and not voting: if it believes that there is a reasonable basis for the Chairman Volcker and Governors Wallich and Rice. bank holding company's opinion. In NCNB Corp. v. Board of Governors of the Federal Reserve System, (Signed) JAMES MCAFEE, 599 F.2d 609 (4th Cir. 1979), the court held that the [SEAL] Associate Secretary of the Board. burden of demonstrating that a reasonable basis exists for a closely related determination rests with an appli- Central Pacific Corporation, cant. Bakersfield, California Applicant asserts that there is a reasonable basis for concluding that its proposed real estate development Order Concerning Application Involving activities are closely related to banking because these Impermissible Activities activities should be viewed as part of the "cluster" of activities offered by the savings and loan association Central Pacific Corporation, Bakersfield, California, a ("S&L"). Thus, according to Applicant, the operation bank holding company within the meaning of the Bank of an S&L, together with any activities of a subsidiary Holding Company Act, has applied for the Board's service corporation, should be viewed as a whole that approval under section 4(c)(8) of the act (12 U.S.C. is closely related to banking.3 Applicant's basis for this § 1843(c)(8)) and section 225.4(b)(2) of the Board's assertion is the "Thrift Study" issued by the Board's Regulation Y (12 CFR § 225.4(b)(2)), to acquire the staff in September 1981. The Board has reviewed the outstanding guarantee stock of Kern Savings and Loan analysis in the Thrift Study and concludes that it does Association, Bakersfield, California ("Kern"), and not present a reasonable basis for concluding that real Kern's wholly-owned service corporation, Kern Fi- estate development activities are closely related to nancial Services, Inc. ("KFSI"). Kern, with $39.4 banking. The study merely states that the "cluster" million in assets, is a state-chartered federally-insured approach might be a way to resolve the conflict savings and loan association. between section 4(c)(8) of the act and the powers Upon consummation of the proposed transaction, authorized for S&Ls. On the other hand, as noted Applicant would engage through Kern in the activity above, the Board has long held that real estate develof operating a savings and loan association, and opment activities are not closely related to banking through KFSI in service corporation activities permis- within the meaning of section 4(c)(8) of the act and are sible under state law. KFSI engages in various activi- thus impermissible for a bank holding company or any ties, including the participation in joint ventures for direct or indirect nonbanking subsidiary thereof. development of multi-family dwellings in the Bakers- (12 CFR § 225.126.) The Board believes that an activifield area, and proposes to engage in additional real ty that is otherwise impermissible for bank holding estate development. Although the Board has by order companies is not rendered permissible simply because in individual cases determined that the operation of a that activity is performed by a direct or indirect thrift institution is closely related to banking,1 the nonbanking subsidiary of the holding company. Board has determined that real estate development In determining whether there is a reasonable basis activities, such as those performed by KFSI, are not for an applicant's opinion that a proposed activity is closely related to banking under the act.2 Notwith- closely related to banking, the Board has found the standing that fact, Applicant has proposed that notice guidelines set forth in National Courier Association v. of opportunity for hearing regarding the activities be Board of Governors of the Federal Reserve System, published in the Federal Register. 516 F.2d 1229 (D.C. Cir. 1975), to be useful. In that Section 225.4(a) of Regulation Y, (12 CFR 225.4(A)) case, the court stated that a finding that an activity is provides that a bank holding company may file an closely related to banking could be made where it is application to engage in activities other than those demonstrated that banks generally have provided the determined to be permissible for bank holding compa- proposed services; that banks generally provide serv- 1. See, Interstate Financial Corporation (Board Press Release of 3. Applicant advances other arguments (for example, that Kern is a April 4, 1982); and American Fletcher Corp., 60 FEDERAL RESERVE financially troubled S&L) that relate to the "proper incident" stan- BULLETIN 868 (1974). dard of the act, and are not relevant to the closely related issue raised 2. 12 CFR § 225.126. by the proposed real estate development activities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 383 ices that are operationally or functionally so similar to meaning of the Bank Holding Company Act, has the proposed services as to equip them particularly applied for the Board's approval, under § 4(c)(8) of the well to provide the proposed service; or that banks act (12 U.S.C. § 1843(c)(8)) and § 225.4(b)(2) of the generally provide services that are so integrally related Board's Regulation Y (12 CFR § 225.4(b)(2)), to acto the proposed service as to require their provision in quire through its wholly-owned subsidiary, Chase a specialized form. Home Mortgage Corporation ("CHMC"), substantial- In this regard, the Board finds that there is no ly all of the assets of Suburban Coastal Corp., Wayne, evidence in the record that banks have engaged in the New Jersey ("Coastal"), a mortgage banking subsidproposed real estate development activity. Further, iary of Suburban Savings and Loan Association, there is no evidence to support the conclusion that the Wayne, New Jersey ("Suburban S&L"). Coastal is proposed activity is operationally or functionally so engaged in the activities of originating and servicing similar to activities presently conducted by banks so one-to-four-family residential mortgages, the provias to indicate that bank holding tompanies are particu- sion of data processing services for itself and Suburlarly well equipped to provide the proposed activity. ban S&L, and selling as agent credit life, accident and Indeed, banks appear to have little or no expertise in health insurance. Each of these activities has been the field of real estate development. There is no determined by the Board to be closely related to evidence in the record that banks generally provide banking (12 CFR §§ 225.4(a)(1), (3), (8), and (9)). services that are so integrally related to real estate Notice of the application, affording opportunity for development as to require bank holding companies to interested persons to submit comments on the public provide this service in a specialized form. Nor has interest factors, has been duly published (47 Federal Applicant provided any other evidence that the pro- Register 19791). The time for filing comments has posed activity is closely related to banking. expired, and the Board has considered the application Based upon the foregoing and the other facts of and all comments received in light of the public record, the Board concludes that Applicant has failed interest factors set forth in section 4(c)(8) of the act. to meet its burden of demonstrating that there is a Applicant, with total consolidated assets of $77.8 reasonable basis for its opinion that the proposed real billion, is the second largest banking organization in estate development activity is closely related to bank- New York State and the third largest in the United ing or managing or controlling banks. Accordingly, a States.1 Applicant engages through subsidiaries in a Federal Register notice of opportunity for hearing in variety of nonbanking activities, including commercial this matter should not be published and the application financing, leasing and factoring. is, hereby, dismissed.4 Through its subsidiary, CHMC, Applicant also orig- By order of the Board of Governors, effective inates and services mortgage loans. CHMC operates May 3, 1982. eleven loan origination offices in five states and its total assets approximate $42 million. During 1981, Voting for this action: Governors Wallich, Partee, Teeters, CHMC originated some $33 million in mortgage loans Rice, and Gramley. Absent and not voting: Chairman and an additional $69 million in such loans were Volcker and Governor Martin. originated by Applicant's banking subsidiary, The Chase Manhattan Bank, N.A. The total mortgages (Signed) JAMES MCAFEE, originated by these two subsidiaries of Applicant ap- [SEAL] Associate Secretary of the Board. proximate 0.1 percent of the total mortgages originated by the 300 largest mortgage banking firms in the Chase Manhattan Corporation, United States. Coastal, with total assets of $308 mil- New York, New York lion as of March 31, 1982, operates 45 mortgage origination offices in 14 states. In 1981, Coastal origi- Order Approving Acquisition of Nonbanking nated some $1.2 billion in mortgage loans, or approxi- Companies mately 1 percent of the total for the 300 largest mortgage banks. Chase Manhattan Corporation, New York, New York CMHC has loan offices in five markets where Coast- ("Applicant"), a bank holding company within the al also has loan offices2 and the combined market 4. Applicant has represented that it will not consummate the 1. Unless otherwise indicated, financial data are as of December subject proposal unless it is approved in its entirety, including the 31, 1981. impermissible real estate development activities that KFSI engages in 2. These offices are located in the Baltimore, Orlando, Jacksonand intends to expand. The Board would be prepared to consider a ville, Tampa, and Miami SMSAs. Although CHMC has offices in New revised application that did not include activities that are not permissi- Jersey, Applicant does not propose to acquire Coastal's New Jersey ble under the act. mortgage origination offices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 Federal Reserve Bulletin • June 1982 share of CHMC and Coastal in these markets ranges Coastal's mortgage servicing activities. The continued from 2.3 percent to 6.7 percent. Thus, some adverse operation of Coastal as a vigorous competitor, and effects on existing competition would result from other public interest considerations relating to the consummation of this proposal. orderly disposition of Coastal, lend significant weight With regard to potential competition, the Board toward approval of the proposal. notes that during the last two years, Coastal has closed The Board has also considered the capital position five offices and reduced its staff by 15 percent. Coas- of Applicant, and wishes to reemphasize its earlier tal's parent corporation, Suburban S&L, has decided statements that the nation's largest banking organizato concentrate its resources on its own activities and it tions should make every effort to improve their capital appears that Suburban S&L will not support Coastal's positions over time. With respect to Applicant, the operations to the extent necessary to ensure Coastal's Board has noted the improvements that Applicant has continued operation as a vigorous competitor. Accord- made in its capital position over the past several ingly, it does not appear that Coastal is a likely entrant months and expects that efforts for further improveinto the local markets where Applicant currently has ment will continue. offices. On the other hand, Applicant has increased its On the basis of these and other facts of record, the number of mortgage banking offices and apparently Board concludes that the benefits to the public that has the potential to enter many of the local markets would result from Applicant's acquisition of Coastal where Coastal presently has offices. Coastal has a are sufficient to outweigh the negative effects on market share in excess of 5 percent in four markets, competition and concentration of resources that would and a market share in excess of 10 percent in only one result from the proposed acquisition. Furthermore, market. Although somewhat concentrated, this latter there is no evidence in the record to indicate that market is far removed from CHMC's base of opera- consummation of the proposed transaction would retions and it does not appear likely that CHMC would sult in unfair competition, conflicts of interest, unenter this market. The large number of other potential sound banking practices or any other effects that entrants into Coastal's local markets also moderates would be adverse to the public interest. the negative effects on potential competition associat- Based upon the foregoing and other considerations ed with the proposal. reflected in the record, the Board has determined that Applicant also proposes to acquire the $4.4 billion the balance of the public interest factors the Board is mortgage servicing portfolio of Coastal, which ranks required to consider under section 4(c)(8) is favorable. as the fifth largest mortgage servicer in the country as Accordingly, the application is hereby approved. This of June 30, 1981. CHMC services a mortgage portfolio determination is subject to the conditions set forth in of $1.5 billion and is the nation's 40th largest mortgage § 225.4(c) of Regulation Y and to the Board's authority servicer as of June 30, 1981. Thus, consummation of to require such modification or termination of the this proposal would eliminate an independent competi- activities of a holding company or any of its subsidiartor in the mortgage servicing industry, and Applicant ies as the Board finds necessary to assure compliance would become the third largest mortgage servicing with the provisions and purposes of the act and the company in the nation. Board's regulations and orders issued thereunder, or In view of the size of the various companies in- to prevent evasion thereof. The transaction shall be volved in this proposal and based upon all the facts of made not later than three months after the effective record, consummation of the proposal would have date of this Order, unless such period is extended for some negative effects with respect to concentration of good cause by the Board or by the Federal Reserve resources. Nevertheless, the Board believes that such Bank of New York pursuant to authority hereby negative effects are tempered by the large number of delegated. other competitors that will remain after consummation By order of the Board of Governors, effective May of the proposal and by the low barriers to entry in 27, 1982. mortgage banking. When balanced against the public benefits expected to result from this transaction, the Voting for this action: Chairman Volcker and Governors Wallich, Partee, Teeters, and Rice. Absent and not voting: Board believes the proposal warrants approval. Governors Martin and Gramley. Governor Wallich abstained Affiliation of Coastal with Applicant will provide from consideration of those portions of the application relat- Coastal with access to Applicant's financial and mana- ed to insurance activities. gerial resources and ensure the continued availability of mortgage loans and related insurance services to (Signed) WILLIAM W. WILES, Coastal's customers, as well as the continuation of [SEAL] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 385 ORDERS APPROVING APPLICATIONS UNDER THE BANK HOLDING COMPANY ACT AND BANK MERGER ACT By the Board of Governors During May 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) First Freeport Corporation, Coastal National Bank, May 20, 1982 Freeport, Texas Angleton, Texas InterFirst Corporation, First International Bank—Chelmont, N.A. April 30, 1982 Dallas, Texas El Paso, Texas Mercantile Texas Corporation, Farmers State Bank of Round Rock, May 7, 1982 Dallas, Texas Round Rock, Texas Mercantile Texas Corporation, State National Financial Corporation, April 29, 1982 Dallas, Texas Corsicana, Texas Section 4 Nonbanking Effective i t * a J-iHVV LI V V Applicant company (or activity) Barnett Banks of Florida, Inc., First State Mortgage Company, May 6, 1982 Jacksonville, Florida Altamonte Springs, Florida 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 Amarillo National Bancorp, Amarillo National Bank, Dallas May 18, 1982 Amarillo, Texas Amarillo, Texas Americo Bancshares, Inc., American Bank of Commerce at Dallas May 18, 1982 Wolfforth, Texas Wolfforth, Texas, Wolfforth, Texas Andrew Johnson Bancshares, Inc., Andrew Johnson Bank, Atlanta May 5, 1982 Greenville, Tennessee Greenville, Tennessee Associated Banc-Corp., Bank of Commerce, Chicago May 18, 1982 Green Bay, Wisconsin Milwaukee, Wisconsin Bank Sales Department, Inc., The State Bank, Chicago May 14, 1982 Terril, Iowa Spirit Lake, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 Federal Reserve Bulletin • June 1982 Section 3—Continued Reserve Effective AApppplliiccaanntt BBaannkk((ss)) Bank date Bancorp of Northwestern Indiana, Goodland State Bank, Chicago May 21, 1982 Goodland, Indiana Goodland, Indiana Basin Bancorp Inc., Ducktown Banking Company, Atlanta May 7, 1982 Ducktown, Tennessee Ducktown, Tennessee Beverly Bankshares, Inc., The Beverly State Bank, Kansas City May 7, 1982 Beverly, Kansas Beverly, Kansas Boatmen's Bancshares, Inc., Farmers and Merchants Bank, St. Louis April 28, 1982 St. Louis, Missouri Cape Girardeau, Missouri Bonneville Bancorp, The Bonneville Bank, San Francisco May 9, 1982 Provo, Utah Provo, Utah Borger First Corporation, First National Bank of Borger, Dallas May 24, 1982 Borger, Texas Borger, Texas BSD Bancorp, Inc., Coast Bank, San Francisco April 26, 1982 San Diego, California Long Beach, California Caldwell Bancshares, Inc., First State Bank, Dallas May 4, 1982 Caldwell, Texas Chilton, Texas Chisago Bancorporation, Inc., Chisago State Bank, Minneapolis May 21, 1982 Minneapolis, Minnesota Chisago City, Minnesota Citizens Holding Company, The Citizens Bank of Philadelphia, Atlanta May 14, 1982 Philadelphia, Mississippi Philadelphia, Mississippi Citizens Union Bancorp of Shelby- Citizens Union Bank of Shelbyville, St. Louis April 29, 1982 ville, Inc., Shelbyville, Kentucky Shelbyville, Kentucky CNB Financial Corporation, Commercial National Bank, Kansas City May 3, 1982 Kansas City, Kansas Kansas City, Kansas Coleman Bancshares, Inc. Coleman Bank, Dallas April 30, 1982 Coleman, Texas Coleman, Texas Columbia Bancshares, Inc., First Capitol Bank, Dallas April 30, 1982 West Columbia, Texas West Columbia, Texas Commercial Bancshares, Inc., Commercial Trust Company of New York May 19, 1982 Jersey City, New Jersey New Jersey, Jersey City, New Jersey Delaware Bancshares, Inc., The Delaware County Bank, Kansas City May 11, 1982 Jay, Oklahoma Jay, Oklahoma Edens Bancshares, Inc., Edens Plaza State Bank, Chicago May 7, 1982 Wilmette, Illinois Wilmette, Illinois English Valley Bancshares, Inc., Farmers Savings Bank, Chicago May 4, 1982 North English, Iowa North English, Iowa Evansville Bancshares, Inc., Farmers State Bank of Evansville, Minneapolis May 14, 1982 Evansville, Minnesota Evansville, Minnesota Farmers and Merchants Financial Farmers and Merchants State Bank Minneapolis May 18, 1982 Services, Inc., of New Ulm, New Ulm, Minnesota New Ulm, Minnesota First Alabama Bancshares, Inc., The Anniston National Bank, Atlanta May 13, 1982 Montgomery, Alabama Anniston, Alabama First American Corporation, First Eastern National Bank, Atlanta May 18, 1982 Nashville, Tennessee Kingsport, Tennessee First Bank Holding Company, Inc., The National Bank of Harvey, Minneapolis May 5, 1982 Harvey, North Dakota Harvey, North Dakota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 387 Section 3—Continued Reserve Effective Applicant BBaannkk((ss)) Bank date First Midwest Bancorp., Inc., The Merchants and Farmers Bank Kansas City April 28, 1982 St. Joseph, Missouri of Salisbury, Salisbury, Missouri The First National Bancorporation, Foothills National Bank, Kansas City April 30, 1982 Inc., Fort Collins, Colorado Denver, Colorado First Newton Corporation, First National Bank of Newton, Atlanta May 7, 1982 Newton, Mississippi Newton, Mississippi First Southeast Banking Corp., Racine County National Bank, Chicago May 5, 1982 Darien, Wisconsin Franksville, Wisconsin Flagship Banks, Inc., Citizens National Bank of Naples, Atlanta May 7, 1982 Miami, Florida Naples, Florida Flint Bancshares, Inc., Cordele Banking Company, Atlanta May 13, 1982 Cordele, Georgia Cordele, Georgia Haviland Bancshares, Inc., The Haviland State Bank, Kansas City May 17, 1982 Haviland, Kansas Haviland, Kansas H C Financial Corp., Hendry County Bank, Atlanta May 25, 1982 LaBelle, Florida LaBelle, Florida JDOB, Inc., First National Bank of Askov, Minneapolis May 10, 1982 Naples, Florida Askov, Minnesota Johnston County Bancshares, Inc., Bank of Johnston County, Dallas April 30, 1982 Tishomingo, Oklahoma Tishomingo, Oklahoma Lakeside Bancshares, Inc., Lakeside National Bank of Atlanta April 27, 1982 Lake Charles, Louisiana Lake Charles, Lake Charles, Louisiana The Levelland Co., Bank of the West, Dallas May 20, 1982 Levelland, Texas Lubbock, Texas South Plains Bancshares, Inc., Idalou, Texas Marion Bancshares, Inc., Marion National Bank, St. Louis April 30, 1982 Lexington, Kentucky Lebanon, Kentucky Lisle Bancorporation, Bank of Lisle, Chicago May 6, 1982 Lisle, Illinois Lisle, Illinois Madison Bancorp., Inc., The Madison Bank, Kansas City May 4, 1982 Madison, Kansas Madison, Kansas Marine Bancorp, Inc., American National Bank of Chicago May 10, 1982 Springfield, Illinois Champaign, Champaign, Illinois Merchants Bancorporation, The Merchants National Bank Kansas City April 30, 1982 Topeka, Kansas of Topeka, Topeka, Kansas Metropolitan Bancshares, Inc., Munford Union Bank, St. Louis May 7, 1982 Munford, Tennessee Munford, Tennessee Midlands Financial Services, Inc., Nebraska State Bank of Omaha, Kansas City May 10, 1982 Omaha, Nebraska Omaha, Nebraska Murdock Bancshares, Inc., Murdock State Bank, Kansas City April 26, 1982 Murdock, Kansas Murdock, Kansas Napoleon Bancorporation, Inc., Stock Growers Bank, Minneapolis May 19, 1982 Napoleon, North Dakota Napoleon, North Dakota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 Federal Reserve Bulletin • June 1982 Section 3—Continued _ . . , Reserve Effective Applicant Bank(s) ^ ^ Northern Cities Bancorporation, Tri-County National Bank, Minneapolis May 5, 1982 Inc., Forest Lake, Minnesota Forest Lake, Minnesota The Northern Corporation, North Side Bank, Kansas City May 10, 1982 Wisner, Nebraska Omaha, Nebraska North Shore Capital Corporation, The Morton Grove Bank, Chicago May 21, 1982 Wilmette, Illinois Morton Grove, Illinois Owatonna Bancshares, Inc., Owatonna State Bank, Minnesota May 11, 1982 Owatonna, Minnesota Owatonna, Minnesota Patriot Bancorporation, Commonwealth National Corpora- Boston May 3, 1982 Boston, Massachusetts tion, Boston, Massachusetts Peoples Banking Co. of Cecil Co., The Peoples Bank of Elkton, Richmond April 27, 1982 Elkton, Maryland Elkton, Maryland Philadelphia Capital Corporation, Bank of Philadelphia, Atlanta May 14, 1982 Philadelphia, Mississippi Philadelphia, Mississippi Pinellas Bancshares Corporation, United Bank of Pinellas, Atlanta May 3, 1982 St. Petersburg, Florida St. Petersburg, Florida Plum Grove Bancorporation, Inc., Plum Grove Bank, Chicago April 26, 1982 Rolling Meadows, Illinois Rolling Meadows, Illinois PT&S Bancorp, Peoples Trust and Savings Bank, Chicago May 14, 1982 Indianola, Iowa Indianola, Iowa Ranger Bancshares, Inc., First State Bank, Dallas May 12, 1982 Ranger, Texas Ranger, Texas Ruidoso Bank Corporation, Ruidoso State Bank, Dallas May 25, 1982 Ruidoso, New Mexico Ruidoso, New Mexico Southern Bancshares, Inc., First State Bank, Dallas May 11, 1982 Bremond, Texas Bremond, Texas Lott State Bank, Lott, Texas Springfield State Bancorporation, State Bank of Springfield, Minneapolis May 3, 1982 Inc., Springfield, Minnesota Springfield, Minnesota State Holding Company, First State Bank, Kansas City May 19, 1982 Thermopolis, Wyoming Thermopolis, Wyoming Steel City Bancorporation, Inc., Thornridge State Bank, Chicago May 7, 1982 Chicago, Illinois South Holland, Illinois Sterling Bankshares, Inc., Bank Management, Inc., Kansas City May 12, 1982 Tecumseh, Nebraska Wahoo, Nebraska The Summit Bancorporation, The Town and Country Bank, New York May 5, 1982 Summit, New Jersey Flemington, New Jersey Table Rock Bancshares, Inc., Community Bank of Shell Knob, St. Louis May 12, 1982 Shell Knob, Missouri Shell Knob, Missouri T-C Holdings, Inc., Bank of Yorktown, Chicago April 26, 1982 Chicago, Illinois Lombard, Illinois Tecumseh Bankshares, Inc., Bank Management, Inc., Kansas City May 12, 1982 Tecumseh, Nebraska Wahoo, Nebraska Union Bank Corporation, Union National Bank, Kansas City April 21, 1982 Wichita, Kansas Wichita, Kansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 389 Section 3—Continued . .. „ . , . Reserve Effective Applicant Bank(s) ^ date United Hamblen, Inc., Bank of Commerce, Atlanta May 5, 1982 Morristown, Tennessee Morristown, Tennessee Valley Capital Corp., The Valley Bank, St. Louis May 21, 1982 Rosedale, Mississippi Rosedale, Mississippi Vesta Bancorporation, Inc., Vesta State Bank, Minneapolis May 18, 1982 Vesta, Minnesota Vesta, Minnesota Victoria Bankshares, Inc., New Braunfels National Bank, Dallas May 18, 1982 Victoria, Texas New Braunfels, Texas Warrior Capital Corporation, Warrior Savings Bank, Atlanta May 13, 1982 Warrior, Alabama Warrior, Alabama Yazoo Capital Corporation, Bank of Yazoo City, Atlanta April 30, 1982 Yazoo City, Mississippi Yazoo City, Mississippi Zapata Bancshares, Inc., First National Bank of Zapata, Dallas May 26, 1982 Zapata, Texas Zapata, Texas Section 4 Nonbanking Reserve Effective Applicant company Bank date (or activity) Landmark Banking Corporation of Florida, Capital America, Inc., Atlanta April 30, 1982 Ft. Lauderdale, Florida Ft. Lauderdale, Florida Capital Associates, Inc., Pompano Beach, Florida Mid-Nebraska Bancshares, Inc., Ord Insurance Agency, Inc., Kansas City April 21, 1982 Ord, Nebraska Ord, Nebraska Southeast Banking Corporation, Churchill Mortgage Company, Atlanta May 3, 1982 Miami, Florida Miami, Florida Tennessee National Bancshares, Inc., Professional Leasing, Inc., Atlanta April 26, 1982 Maryville, Tennessee Maryville, Tennessee Sections 3 and 4 Nonbanking Reserve Effective Applicant Bank(s) company Bank date (or activity) Bushnell Bancorp, Kimball County Bank, Bushnell Insurance Kansas City May 12, 1982 Bushnell, Nebraska Bushnell, Nebraska Agency, Bushnell, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

390 Federal Reserve Bulletin • June 1982 ORDERS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Reserve Effective Applicant Bank(s) Bank date First Virginia Bank-Highlands, The Bath County National Bank, Richmond May 20, 1982 Covington, Virginia Hot Springs, Virginia First Virginia Bank-Shenandoah First Virginia Bank of Frederick Richmond May 4, 1982 Valley, County, Woodstock, Virginia Stephens City, Virginia Guardian State Bank, Empire State Bank, San Francisco March 30, 1982 Salt Lake City, Utah Salt Lake City, Utah PENDING CASES INVOLVING THE BOARD OF GOVERNORS* *This list of pending cases does not include suits Option Advisory Service, Inc. v. Board of Governors, against the Federal Reserve Banks in which the Board filed September 1981, U.S.C.A. for the Second of Governors is not named a party. Circuit (two cases). Bank Stationers Association, Inc., et al. v. Board of Florida National Banks of Florida, Inc. v. Board of Governors, filed July 1981, U.S.D.C. for the North- Governors, filed April 1982, U.S.C.A. for the Dis- ern District of Georgia. trict of Columbia. Public Interest Bounty Hunters v. Board of Gover- John A. Gabriel v. Board of Governors, filed April nors, et al., filed June 1981, U.S.D.C. for the 1982, U.S.C.A. for the Ninth Circuit. Northern District of Georgia. First Bancorporation v. Board of Governors, filed Edwin F. Gordon v. John Heimann, et al., filed May April 1982, U.S.C.A. for the Tenth Circuit. 1981, U.S.C.A. for the Fifth Circuit. Charles G. Vick v. Paul A. Volcker, et al., filed March Wilshire Oil Company of Texas v. Board of Gover- 1982, U.S.D.C. for the District of Columbia. nors, et al, filed April 1981, U.S.C.A. for the Third Jolene Gustafson v. Board of Governors, filed March Circuit. 1982, U.S.C.A. for the Fifth Circuit. First Bank & Trust Company v. Board of Governors, C. A. Cavendes, Sociedad Financiera v. Board of filed February 1981, U.S.D.C. for the Eastern Dis- Governors, filed January 1982, U.S.C.A. for the trict of Kentucky. District of Columbia. 9 to 5 Organization for Women Office Workers v. First Lakefield BanCorporation v. Board of Gover- Board of Governors, filed December 1980, nors, et al., filed January 1982, U.S.D.C. for the U.S.D.C. for the District of Massachusetts. District of Minnesota. Securities Industry Association v. Board of Gover- Christian Educational Association, Inc. v. Federal nors, et al., filed October 1980, U.S.D.C. for the Reserve System, filed January 1982, U.S.D.C. for District of Columbia. the Middle District of Florida. Securities Industry Association v. Board of Gover- Option Advisory Service, Inc. v. Board of Governors, nors, et al, filed October 1980, U.S.C.A. for the filed December 1981, U.S.C.A. for the Second District of Columbia. Circuit. A. G. Becker, Inc. v. Board of Governors, et al., filed Edwin F. Gordon v. Board of Governors, et al., filed October 1980, U.S.D.C. for the District of Colum- October 1981, U.S.C.A. for the Eleventh Circuit bia. (two consolidated cases). A. G. Becker, Inc. v. Board of Governors, et al., filed Wendall Hall v. Board of Governors, et al., filed October 1980, U.S.C.A. for the District of Colum- September 1981, U.S.D.C. for the Northern District bia. of Georgia. A. G. Becker, Inc. v. Board of Governors, et al., filed Allen Wolf son v. Board of Governors, filed September August 1980, U.S.D.C. for the District of Columbia. 1981, U.S.D.C. for the Middle District of Florida. Berkovitz, et al. v. Government of Iran, et al., filed June 1980, U.S.D.C. for the Northern District of California. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AI Financial and Business Statistics CONTENTS WEEKLY REPORTING COMMERCIAL BANKS Assets and liabilities Domestic Financial Statistics A18 All reporting banks A19 Banks with assets of $1 billion or more A3 Monetary aggregates and interest rates A20 Banks in New York City A4 Reserves of depository institutions, reserve, A21 Balance sheet memoranda bank credit A22 Branches and agencies of foreign banks A5 Reserves and borrowings of depository A23 Commercial and industrial loans institutions A24 Gross demand deposits of individuals, A6 Federal funds and repurchase agreements of partnerships, and corporations large member banks FINANCIAL MARKETS POLICY INSTRUMENTS A25 Commercial paper and bankers dollar A7 Federal Reserve Bank interest rates acceptances outstanding A8 Depository institutions reserve requirements A26 Prime rate charged by banks on short-term A9 Maximum interest rates payable on time and business loans savings deposits at federally insured institutions A26 Terms of lending at commercial banks A10 Federal Reserve open market transactions All Interest rates in money and capital markets A28 Stock market—Selected statistics A29 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

2 Federal Reserve Bulletin • June 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 A55 Foreign official assets held at Federal Reserve asset position Banks A37 Corporate profits and their distribution A56 Foreign branches of U.S. banks—Balance sheet A38 Nonfinancial corporations—Assets and data liabilities A58 Selected U.S. liabilities to foreign official A38 Total nonfarm business expenditures on new institutions plant and equipment A39 Domestic finance companies—Assets and liabilities; business credit REPORTED BY BANKS IN THE UNITED STATES A58 Liabilities to and claims on foreigners REAL ESTATE A59 Liabilities to foreigners A61 Banks' own claims on foreigners A40 Mortgage markets A62 Banks' own and domestic customers' claims on A41 Mortgage debt outstanding foreigners A62 Banks' own claims on unaffiliated foreigners A63 Claims on foreign countries—Combined CONSUMER INSTALLMENT CREDIT domestic offices and foreign branches A42 Total outstanding and net change A43 Extension and liquidations REPORTED BY NONBANKING BUSINESS ENTERPRISES IN THE UNITED STATES FLOW OF FUNDS A64 Liabilities to unaffiliated foreigners A65 Claims on unaffiliated foreigners A44 Funds raised in U.S. credit markets A45 Direct and indirect sources of funds to credit markets SECURITIES HOLDINGS AND TRANSACTIONS A66 Foreign transactions in securities Domestic Nonfinancial Statistics A67 Marketable U.S. Treasury bonds and notes— Foreign holdings and transactions 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 A67 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 1982 1981 1982 Item Q2 Q3 Q4 Q1 Dec. Jan. Feb. Mar. Apr. Monetary and credit aggregates (annual rates of change, seasonally adjusted in percent)1 Reserves of depository institutions 1 Total 4.2 4.0 3.2 8.3 11.3 22.2 -10.2 4.7 2.7 2 Required 5.0 3.1 3.5 7.9 12.1 19.4 -6.9 3.1 5.3 3 Nonborrowed -2.4 7.9 10.5 .4 12.3 -4.0 -18.8 12.1 2.5 4 Monetary base2 5.8 4.3 3.9 8.0 11.3 11.6 3.4 4.1 9.2 Concepts of money and liquid assets3 5 Ml 9.2 .3 5.7 10.4 12.4 21.0 -3.5 22..44 11.0 6 M2 12.0 8.3 8.8 9.7 8.4 12.2 4.3 11.2 9.7 7 M3 12.2 11.2 9.2 8.6 7.3 8.9 5.8 11.3 11.4 8 L 10.6 11.9 10.6 n.a. 5.7 7.9 n.a. n.a. n.a. Time and savings deposits Commercial banks 9 Total 11.9 18.4 8.3 7.5 1.6 5.0 Ill 19.9 15.6 10 Savings4 -8.9 -22.7 -11.9 8.7 4.6 14.5 .8 13.6 -1.5 11 Small-denomination time5 16.2 24.3 20.8 9.7 -.3 4.4 16.1 25.1 28.8 12 Large-denomination time6 19.9 36.0 5.4 4.6 2.2 1.1 10.7 17.2 9.0 13 Thrift institutions7 3.2 2.6 2.7 3.1 1.3 1.1 5.2 7.6 5.3 14 Total loans and securities at commercial banks8 8.5 8.7 3.6 2.5 -io.r 3.5' 10.7r 8.0r 8.7 1981 1982 1982 Q2 Q3 Q4 Q1 Jan. Feb. Mar. Apr. May Interest rates (levels, percent per annum) Short-term rates 15 Federal funds9 17.78 17.58 13.59 14.23 13.22 14.78 14.68 14.94 16 Discount window borrowing10 13.62 14.00 13.04 12.00 12.00 12.00 12.00 12.00 17 Treasury bills (3-month market vield) 14.91 15.05 11.75 12.81 12.28 13.48 12.68 12.70 18 Commercial paper (3-month)ur2.... 16.15 16.78 13.04 13.81 13.09 14.53 13.80 14.06 Long-term rates Bonds 19 U.S. government13 13.49 14.51 14.14 14.27 14.57 14.48 13.75 13.57 20 State and local government14 10.69 12.11 12.54 13.02 13.28 12.97 12.82 12.59 21 Aaa utility (new issue)15 15.41 16.82 15.67 15.71 15.68 15.93 15.43 15.83 22 Conventional mortgages16 16.15 17.50 17.33 17.10 17.30 17.20 16.80 16.65 1. Unless otherwise noted, rates of change are calculated from average amounts L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents outstanding in preceding month or quarter. other than banks, bankers acceptances, commercial paper, Treasury bills and other 2. Includes reserve balances at Federal Reserve Banks in the current week plus liquid Treasury securities, and U.S. savings bonds. vault cash held two weeks earlier used to satisfy reserve requirements at all deposi- 4. Savings deposits exclude NOW and ATS accounts at commercial banks and tory institutions plus currency outside the U.S. Treasury, Federal Reserve Banks, thrifts and CUSD accounts at credit unions. the vaults of depository institutions, and surplus vault cash at depository institu- 5. Small-denomination time deposits—including retail RPs—are those issued in tions. amounts of less than $100,000. 3. Ml: Averages of daily figures for (1) currency outside the Treasury, Federal 6. Large-denomination time deposits are those issued in amounts of $100,000 or Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of non- more. bank issuers; (3) demand deposits at all commercial banks other than those due 7. Savings and loan associations, mutual savings banks, and credit unions. to domestic banks, the U.S. government, and foreign banks and official institutions 8. Changes calculated from figures shown in table 1.23. December 1981 and 1981 less cash items in the process of collection and Federal Reserve float; and (4) Q4 rates reflect shifts of foreign loans and securities from U.S. banking offices to negotiable order of withdrawal (NOW) and automatic transfer service (ATS) ac- international banking facilities. counts at banks and thrift institutions, credit union share draft (CUSD) accounts, 9. Averages of daily effective rates (average of the rates on a given date weighted and demand deposits at mutual savings banks. by the volume of transactions at those rates). M2: Ml plus savings and small-denomination time deposits at all depository 10. Rate for the Federal Reserve Bank of New York. institutions, overnight repurchase agreements at commercial banks, overnight Eu- 11. Quoted on a bank-discount basis. rodollars held by U.S. residents other than banks at Caribbean branches of member 12. Unweighted average of offering rates quoted by at least five dealers. banks, and balances of money market mutual funds (general purpose and broker/ 13. Market yields adjusted to a 20-year maturity by the U.S. Treasury. dealer). 14. Bond Buyer series for 20 issues of mixed quality. M3: M2 plus large-denomination time deposits at all depository institutions and 15. Weighted averages of new publicly offered bonds rated Aaa, Aa, and A by term RPs at commercial banks and savings and loan associations and balances of Moody's Investors Service and adjusted to an Aaa basis. Federal Reserve cominstitution-only money market mutual funds. pilations. 16. Average rates on new commitments for conventional first mortgages on new homes in primary markets, unweighted and rounded to nearest 5 basis points, from Dept. of Housing and Urban Development. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 DomesticN onfinancial Statistics • June 1982 1.11 RESERVES OF DEPOSITORY INSTITUTIONS, RESERVE BANK CREDIT Millions of dollars Monthly averages of daily figures Weekly averages of daily figures for week ending Factors 1982 1982 Mar. Apr. May Apr. 14 Apr. 21 Apr. 28 May 5 May 12 May 19P May 26 p SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 146,815 150,361 151,154 148,694 152,150 150,809 156,441 150,703 150,803 149,951 2 U.S. government securities1 124,600 127,526 129,686 125,592 129,436 128,370 132,639 128,663 129,727 129,340 3 Bought outright 124,303 126,542 128,964 125,592 128,109 128,055 129,080 128,663 128,934 128,784 4 Held under repurchase agreements 297 984 722 0 1.327 315 3,559 0 793 556 5 Federal agency securities 9,035 9,123 9,123 9,011 9,117 9,058 9,654 9,008 9,097 9,084 6 Bought outright 9,017 9,010 9,008 9,011 9,008 9,008 9,008 9,008 99,,000088 9,008 7 Held under repurchase agreements 18 113 115 0 109 50 646 0 8899 76 8 Acceptances 47 150 164 0 209 27 498 0 233 231 9 Loans 1,611 1,581 1,105 1,335 1,653 1,823 1,499 1,117 963 1,054 10 Float 2,420 2,629 1,988 3,535 2,393 1,996 2,122 2,134 1,777 1,995 11 Other Federal Reserve assets 9,102 9,352 9,088 9,222 9,342 9,534 10,029 9,780 9,006 8,247 12 Gold stock 11,150 11,150 11,149 11,150 11,150 11,150 11,149 11,149 11,149 11,149 13 Special drawing rights certificate account... 3,568 3,660 3,818 3,568 3,639 3,818 3,818 3,818 3,818 3,818 14 Treasury currency outstanding 13,723 13,744 13,758 13,737 13,750 13,752 13,756 13,756 13,756 13,757 ABSORBING RESERVE FUNDS 15 Currency in circulation 140,951 143,024 144,683 143,702 143,477 142,831 143,427 144,656 144,8% 144,737 16 Treasury cash holdings 474 490 489 491 490 490 490 492 488 486 Deposits, other than reserves, with Federal Reserve Banks 17 Treasury 3,312 4,695 4,292 3,626 4,258 4,788 9,773 4,694 3,122 3,023 18 Foreign 280 289 332 307 247 255 583 317 259 260 19 Other 560 443 509 435 380 487 523 476 500 501 20 Required clearing balances 156 172 184 172 174 177 177 183 186 189 21 Other Federal Reserve liabilities and capital 5,121 5,237 5,364 5,073 5,261 5,295 5,520 5,257 5,203 5,319 22 Reserve accounts2 24,401 24,565 24,028 23,343 26,402 25,205 24,671 23,351 24,872 24,161 End-of-month figures Wednesday figures 1982 1982 Mar. Apr. May Apr. 14 Apr. 21 Apr. 28 May 5 May 12 May 19? May 26 P SUPPLYING RESERVE FUNDS 23 Reserve Bank credit outstanding 148,729 158,729 149,884 149,477 155,488 158,701 152,208 152,966 153,320 149,245 24 U.S. government securities1 125,589 134,257 129,407 123,831 130,615 130,371 129,232 129,845 131,291 128,765 25 Bought outright 123,992 128,988 129,407 123,831 127,949 128,166 129,232 129,845 128,358 128,765 26 Held under repurchase agreements 1,597 5,269 0 2,666 2,205 0 0 2,933 0 27 Federal agency securities 9,095 10,004 9,008 9,008 9,228 9,356 0 0 9,425 9,008 28 Bought outright 9,013 9,008 9,008 9,008 9,008 9,008 9,008 9,008 9,008 9,008 29 Held under repurchase agreements 82 996 0 220 348 9,008 9,008 417 0 30 Acceptances 488 768 0 128 192 0 0 944 0 31 Loans 2,646 1,799 1,058 4,444 3,043 6,180 1,251 1,757 1,058 1,367 32 Float 1,882 1,507 1,776 2,890 2,955 2,870 2,973 2,702 2,008 1,648 33 Other Federal Reserve assets 9,029 10,394 8,635 9,304 9,519 9,732 9,744 9,654 8,594 8,457 34 Gold stock 11,150 11,149 11,149 11,150 11,150 11,150 11,149 11,149 11,149 11,149 35 Special drawing rights certificate account... 3,568 3,818 3,818 3,568 3,818 3,818 3,818 3,818 3,818 3,818 36 Treasury currency outstanding 13,734 13,756 13,767 13,745 13,751 13,756 13,756 13,756 13,756 13,761 ABSORBING RESERVE FUNDS 37 Currency in circulation 141,673 143,044 145,523 144,220 143,346 143,361 144,259 145,384 145,037 145,504 38 Treasury cash holdings 484 491 477 491 489 491 487 490 487 483 Deposits, other than reserves, with Federal Reserve Banks 39 Treasury 2,866 12,239 2,540 2,909 7,031 10,869 4,354 3,051 3,697 2,969 40 Foreign 421 966 308 239 224 264 283 227 241 272 41 Other 425 450 523 373 486 484 510 541 507 545 42 Required clearing balances 167 176 189 171 174 175 176 181 186 189 43 Other Federal Reserve liabilities and capital 4,955 5,561 5,784 4,946 5,211 5,282 5,146 5,042 5,096 5,118 44 Reserve accounts2 26,190 24,526 23,274 24,591 27,246 26,498 25,716 26,773 26,792 22,893 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. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.' May? 1 Reserve balances with Reserve Banks1.... 26,664 25,499 25,690 25,892 26,163 26,721 25,963 24,254 24,565 24,028 2 Total vault cash (estimated) 18,149 18,925 18,810 18,844 19,538 20,284 19,251 18,749 18,577 19,032 3 Vault cash at institutions with required reserve balances2 12,602 13,041 12,924 12,986 13,577 14,199 13,082 12,663 12,709 13,038 4 Vault cash equal to required reserves at other institutions 704 2,053 2,097 2,073 2,178 2,290 2,235 2,313 2,284 2,312 5 Surplus vault cash at other institutions3 . 4,843 3,831 3,789 3,785 3,783 3,795 3,934 3,773 3,584 3,682 6 Reserve balances + total vault cash4 44,940 44,424 44,500 44,736 45,701 47,005 45,214 43,003 43,142 43,063 7 Reserve balances + total vault cash used to satisfy reserve requirements4,5 40,097 40,593 40,711 40,951 41,918 43,210 41,280 39,230 39,558 39,381 8 Required reserves (estimated) 40,067 40,177 40,433 40,604 41,606 42,785 40,981 38,873 39,284 39,199 9 Excess reserve balances at Reserve Banks4-6 30 416 278 347 312 425 299 357 274 182 10 Total borrowings at Reserve Banks 1,617 1,473 1,149 695 642 1,526 1,713 1,611 1,581 1,105 11 Seasonal borrowings at Reserve Banks 116 222 152 79 53 75 132 174 167 237 12 Extended credit at Reserve Banks n.a. 301 442 178 149 197 232 309 245 177 Weekly averages of daily figures for week ending: 1982 Mar. 24 Mar. 31 Apr. 7 Apr. 14 Apr. 21r Apr. 28' May 5 May 12 May 19P May 26 p 13 Reserve balances with Reserve Banks1.... 24,905 24,376 23,280 23,343 26,402 25,205 24,671 23,351 24,872 24,161 14 Total vault cash (estimated) 17,621 18,574 18,858 19,208 17,243 18,702 19,611 19,639 18,557 18,468 15 Vault cash at institutions with required reserve balances2 12,141 12,653 12,800 12,950 11,924 12,939 13,485 13,324 12,620 12,740 16 Vault cash equal to required reserves at other institutions 2,084 2,261 2,355 2,404 2,092 2,252 2,403 2,483 2,254 2,176 17 Surplus vault cash at other institutions3 . 3,396 3,660 3,703 3,854 3,227 3,511 3,723 3,832 3,683 3,552 18 Reserve balances + total vault cash4 42,526 42,950 42,138 42,551 43,645 43,907 44,282 42,990 43,432 4422,,663322 19 Reserve balances + total vault cash used to satisfy reserve requirements4'5 39,130 39,290 38,435 38,697 40,418 40,396 40,559 39,158 39,749 39,080 20 Required reserves (estimated) 38,861 38,824 38,163 38,379 40,247 40,111 40,115 38,894 39,289 38,942 21 Excess reserve balances at Reserve Banks4'6 269 466 272 318 171 285 444 264 460 138 22 Total borrowings at Reserve Banks 1,652 1,656 1,480 1,335 1,653 1,823 1,499 1,117 963 1,054 23 Seasonal borrowings at Reserve Banks 173 200 166 154 159 177 205 218 232 258 24 Extended credit at Reserve Banks.... 311 324 279 234 248 227 214 192 179 162 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. Before Nov. 13, 1980, the figures shown reflect only the vault cash held by not add to total because adjusted data by class are not available. member banks. 5. Reserve balances with Federal Reserve Banks which exclude required clearing 3. Total vault cash at institutions without required reserve balances less vault balances plus vault cash at institutions with required reserve balances plus vault cash equal to their required reserves. cash equal to required reserves at other institutions. 4. Adjusted to include waivers of penalties for reserve deficiencies in accordance 6. Reserve balances with Federal Reserve Banks which exclude required clearing with Board policy, effective Nov. 19, 1975, of permitting transitional relief on a balances plus vault cash used to satisfy reserve requirements less required reserves. graduated basis over a 24-month period when a nonmember bank merged into an (This measure of excess reserves is comparable to the old excess reserve concept published historically.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 DomesticN onfinancial Statistics • June 1982 1.13 FEDERAL FUNDS AND REPURCHASE AGREEMENTS Large Member Banks1 Averages of daily figures, in millions of dollars 1982, week ending Wednesday BByy mmaattuurriittyy aanndd ssoouurrccee Mar. 31 Apr. 7 Apr. 14 Apr. 21 Apr. 28 May 5 May 12 May 19 May 26 One day and continuing contract 1 Commercial banks in United States 5522,,558888 6611,,441177rr 62,005r 5577,,773322rr 5544,,110022'''' 5566,,441188 5588,,994477 5555,,224466 5544,,221166 2 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 19,910 18,378 18,862 18,822 18,437 r 19,663 20,582 22,496 23,688 3 Nonbank securities dealers 3,939 3,979 3,547 3,604 3,452 3,900 3,982 3,856 3,684 4 All other 23,246 22,926r 19,784r 21,041r 21,952r 22,152 22,111 22,932 21,524 All other maturities 5 Commercial banks in United States 44,,116677 4,104 5,045 4,658 4,582 4,789 4,593 44,,334466 44,,228866 6 Other depository institutions, foreign banks and foreign official institutions, and U.S. government agencies . 8,141 8,394 8,620 8,712 8,903' 9,569 9,308 9,372 9,640 7 Nonbank securities dealers 3,783 3,639 3,906 3,674 4,078 4,433 4,195 4,002 3,686 8 All other 9,405 9,552 12,984 11,114 9,432 8,798 9,132 9,243 10,170 MEMO: Federal funds and resale agreement loans in maturities of one day or continuing contract 9 Commercial banks in United States 17,094 20,082 18,539 19,423 18,475r 20,204 19,332 18,424 18,866 10 Nonbank securities dealers 4,470 4,414 4,307 4,186 4,632 4,312 3,709 3,973 4,169 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 aanndd sseeaassoonnaall ccrreeddiitt First 60 days Next 90 days FFFeeedddeeerrraaalll RRReeessseeerrrvvveee of borrowing of borrowing After 150 days BBBaaannnkkk EEffffeeccttiivvee ddaattee ffoorr ccuurrrreenntt rraatteess Rate on Effective Previous Rate on Previous Rate on Previous Rate on Previous 5/31/82 date rate 5/31/82 rate 5/31/82 rate 5/31/82 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. B o a f n k Effective date A le l v l e F l) . — R. Ba o n f k Effective date A le l v l e F l) . — R. Ba o n f k Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1972 4i/z 4V5 1976— Jan. 19. 5'/>-6 5 V5 11997799—— SSeepptt.. 19 W/i-W 11 1973— Jan. 15 5 5 23. 51/5 51/5 21 11 11 Feb. 26 5-5 '/5 5 V5 Nov. 22. 51/4-51/! 51/4 Oct. 8 11-12 12 Mar. 2 5V5 51/2 26. 51/4 5'/4 10 12 12 Apr. 23 5V2-5V* 5V5 MMaayy 4 53/4 53/4 1977— Aug. 30. 51/4-53/4 51/4 1980— Feb. 15 12-13 13 11 53/4-6 6 31. 51/4-53/4 53/4 19 13 13 18 6 6 Sept. 2. 53/4 53/4 MMaayy 29 12-13 13 June 11 6-6 VS 61/5 Oct. 26. 6 6 30 12 12 15 6 >/2 61/5 June 13 11-12 11 July 2 7 1 1978— Jan. 9. 6-6'/5 61/5 16 11 11 AAuugg.. 14 i-m m 20. 6 '/5 6V5 JJuullyy 28 10-11 10 23 7V5 71/2 May 11. 6V5-7 7 29 10 10 12. 7 7 Sept. 26 11 11 11997744—— AApprr.. 25 7V5-8 8 July 3. 7-71/4 71/4 Nov. 17 12 12 30 8 8 July 10. 71/4 71/4 Dec. 5 12-13 13 Dec. 9 73/4-8 73/4 Aug. 21. 73/4 73/4 8 13 13 16 73/4 73/4 Sept. 22. 1975— Jan. 6 71/4-73/4 73/4 Oct. 2 16 0 . . 8 8 - V 81 5 / 5 8 8 i '/ / 5 5 1981— M M a a y y 5 8 13 1 - 4 1 4 1 1 4 4 10 7V4-73/4 71/4 Nov. 1. 8V5-91/5 91/5 Nov. 2 13-14 13 24 7'/4 7'/4 3. 9V5 9V5 Nov. 6 13 13 Feb. 5 63/4-71/4 63/4 Dec. 4 12 12 7 63/4 63/4 1979— July 20. 10 10 Mar. 1 1 0 4 61/ 6 4 1 - / 6 4 3 /4 6 6 1 '/ / 4 4 Aug. 2 17 0 . . 10\-m10V 5 1 10 0 1 '/ / 5 5 MMaayy 16 6-61/4 6 23 6 6 In effect May 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 for short-term adjustment credit. For description and earlier data see quarter. A 3 percent surcharge was in effect from Mar. 17, 1980, through May 7, the following publications of the Board of Governors: Banking and Monetary 1980. There was no surcharge until Nov. 17, 1980, when a 2 percent surcharge was Statistics, 1914-1941 and 1941-1970; Annual Statistical Digest, 1970-1979, and 1980. adopted; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and to 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, and to 2 percent effective Oct. 12. As of Oct. 1, the formula for applying the surcharge was changed from a calendar quarter to a moving 13-week period. The surcharge was eliminated on Nov. 17, 1981. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 DomesticN onfinancial Statistics • June 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 9lA 12/30/76 1122 1111//1133//8800 10-100 im 12/30/76 100-400 12% 12/30/76 Nonpersonal time deposits8 Over 400 16 W 12/30/76 By original maturity Less than 3'/S years 3 4/29/82 TTiimmee aanndd ssaavviinnggss22--33 3'/i years or more 0 4/29/82 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 2VS 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 2lA 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 7 Vl 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. New institutions have a two-year phase-in beginning with the date that foreign branches lend to U.S. residents were reduced to zero from 4 percent and they open for business, except for those institutions having total reservable liabilities 1 percent respectively. The Regulation D reserve requirement on borrowings from of $50 million or more. unrelated banks abroad was also reduced to zero from 4 percent. 6. Transaction accounts include all deposits on which the account holder is (d) Effective with the reserve computation period beginning Nov. 16, 1978, permitted to make withdrawals by negotiable or transferable instruments, payment domestic deposits of Edge corporations were subject to the same reserve require- orders of withdrawal, and telephone and preauthorized transfers (in excess of three ments as deposits of member banks. per month) for the purpose of making payments to third persons or others. 3. (a) Negotiable order of withdrawal (NOW) accounts and time deposits such 7. The Monetary Control Act of 1980 requires that the amount of transaction as Christmas and vacation club accounts were subject to the same requirements as accounts against which the 3 percent reserve requirement will apply be modified savings deposits. annually to 80 percent of the percentage increase in transaction accounts held by (b) The average reserve requirement on savings and other time deposits before all depository institutions on the previous June 30. At the beginning of 1982 the implementation of the Monetary Control Act had to be at least 3 percent, the amount was accordingly increased from $25 million to $26 million. minimum specified by law. 8. In general, nonpersonal time deposits are time deposits, including savings 4. (a) Effective Nov. 2,1978, a supplementary reserve requirement of 2 percent deposits, that are not transaction accounts and in which the beneficial interest is was imposed on large time deposits of $100,000 or more, obligations of affiliates, held by a depositor that is not a natural person. Also included are certain transand ineligible acceptances. This supplementary requirement was eliminated with ferable time deposits held by natural persons, and certain obligations issued to the maintenance period beginning July 24, 1980. depository institution offices located outside the United States. For details, see (b) Effective with the reserve maintenance period beginning Oct. 25, 1979, a section 204.2 of Regulation D. marginal reserve requirement of 8 percent was added to managed liabilities in excess of a base amount. This marginal requirement was increased to 10 percent NOTE. Required reserves must be held in the form of deposits with Federal beginning Apr. 3, 1980, was decreased to 5 percent beginning June 12, 1980, and Reserve Banks or vault cash. After implementation of the Monetary Control Act, nonmembers may maintain reserves on a pass-through basis with certain approved institutions. NOTES TO TABLE 1.16 NOTE. Before Mar. 31, 1980, the maximum rates that could be paid by federally 18. Effective Dec. 1,1981, depository institutions were authorized to offer time insured commercial banks, mutual savings banks, and savings and loan associations deposits not subject to interest rate ceilings when the funds are deposited to the were established by the Board of Governors of the Federal Reserve System, the credit of, or in which the entire beneficial interest is held by, an individual pursuant Board of Directors of the Federal Deposit Insurance Coiporation, and the Federal to an IRA agreement or Keogh (H.R. 10) plan. Such time deposits must have a Home Loan Bank Board under the provisions of 12 CFR 217, 329, and 526 reminimum maturity of 18 months, and additions may be made to the time deposit spectively. Title II of the Depository Institutions Deregulation and Monetary Conat any time before its maturity without extending the maturity of all or a portion trol Act of 1980 (P.L. 96-221) transferred the authority of the agencies to establish of the balance of the account. maximum rates of interest payable on deposits to the Depository Institutions De- 19. Effective May 1, 1982, depository institutions were authorized to offer ne- regulation Committee. The maximum rates on time deposits in denominations of gotiable or nonnegotiable time deposits with a minimum original maturity of $100,000 or more with maturities of 30-89 days were suspended in June 1970; such years or more that are not subject to interest rate ceilings. Such time deposits have deposits maturing in 90 days or more were suspended in May 1973. For information no minimum denomination, but must be made available in a $500 denomination. regarding previous interest rate ceilings on all types of accounts, see earlier issues Additional deposits may be made to the account during the first year without of the FEDERAL RESERVE BULLETIN ,the Federal Home Loan Bank Board Journal, extending its maturity. 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 May 31, 1982 Previous maximum In effect May 31, 1982 Previous maximum Percent Eff d e a c te ti ve Eff d e a c te ti ve Eff d e a c te ti ve Percent 2 1 N Sa e v g i o n t g i s a ble order of withdrawal accounts 2 5 51 V /4 4 12 7 /3 /1 1 / / 7 8 9 0 7 1 / / 1 1 / / 7 7 3 4 55V1/S4 12 7 /3 /1 1 / /8 7 0 9 5 5' /4 Time accounts 3 Fixed ceiling rates by maturity 4 1 1 9 3 4 5 6 7 8 0 1 2 6 I 9 8 4 2 1 1 s V 0 4 s y t t t t - o o l o o u d e 8 e t a a 9 8 2 2 6 o d r y V s s d y y y 4 t i o e e o e a t y y o a a r a y g e e r r r m s s s s o 1 a a ' r r v 8 8 o v s s e r e 7 7 e r a n r 8 m ental units (all maturities) 10 7 m 7 5 5 6 1 3 3 1 V / / / / 2 4 4 i 4 12 1 8 7 7 6 6 / 1 1 2 / / / / / / / 1 1 1 1 1 3 1 1 / / / / / / / / 7 7 7 7 7 7 7 8 8 8 4 9 3 3 3 0 5 I 7 5 5 5 5 V V V 3 3 / % / 4 A 4 5 5 i 2 1 1 1 1 7 / 7 1 / / / 2 2 2 2 / / / 1 3 1 1 1 1 1 / / / / / / / 7 7 7 7 7 7 7 3 3 0 4 0 0 3 6 6 6 I 7 ( 3 3 V V 6 / / ) I 4 4 i 12 1 6 6 / 1 1 2 ( / ( / / / 1 1 3 1 ' 1 ' ) ) / / / / / 7 7 7 7 8 8 8 4 3 0 (6) ^ 6 6 I 5 5 7 3 3 3 V / / / 4 4 4 i 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 91-day time deposits13 14 6-month money market time deposits 14 1 1 6 5 2 1 V 2- i m y o e n ar th s t a o l l le s s a s v e t r h s a n c e 3 r V tif i i y ca e t a e r s s 1 " 6 (.6) (17) (16) Accounts with no ceiling rates 17 Individual retirement accounts and Keogh (H.R. 10) plans (18 months or more) 18 18 3 Vi years or more time deposits 19 1. July 1, 1973, for mutual savings banks; July 6, 1973, for savings and loans. beginning Nov. 1, 1981, depository institutions may pay rates of interest on these 2. For authorized states only. Federally insured commercial banks, savings and deposits indexed to the higher of (1) the rate for 26-week Treasury bills established loan associations, cooperative banks, and mutual savings banks in Massachusetts immediately before the date of deposit (bill rate) or (2) the average of the four and New Hampshire were first permitted to offer negotiable order of withdrawal rates for 26-week Treasury bills established for the 4 weeks immediately before (NOW) accounts on Jan. 1, 1974. Authorization to issue NOW accounts was ex- the date of deposit (4-week average bill rate). Ceilings are determined as follows: tended to similar institutions throughout New England on Feb. 27, 1976, in New York State on Nov. 10, 1978, and in New Jersey on Dec. 28, 1979. Authorization Bill rate or 4-week Commercial bank ceiling to issue NOW accounts was extended to similar institutions nationwide effective average bill rate Dec. 31, 1980. / 7.50 percent or below 7.75 percent 3. For exceptions with respect to certain foreign time deposits see the BULLETIN Above 7.50 percent 1/4 of 1 percentage point plus the higher of for October 1962 (p. 1279), August 1965 (p. 1084), and February 1968 (p. 167). the bill rate or 4-week average bill rate 4. Effective Nov. 10, 1980, the minimum notice period for public unit accounts at savings and loan associations was decreased to 14 days and the minimum maturity Thrift ceiling period for time deposits at savings and loan associations in excess of $100,000 was 7.25 percent or below 7.75 percent decreased to 14 days. Effective Oct. 30, 1980, the minimum maturity or notice Above 7.25 percent, but below Vi of 1 percentage point plus the higher of period for time deposits was decreased from 30 to 14 days at mutual savings banks. 8.50 percent the bill rate or 4-week average bill rate 5. Effective Oct. 30, 1980, the minimum maturity or notice period for time 8.50 percent or above, but below 9 percent deposits was decreased from 30 to 14 days at commercial banks. 8.75 percent 6. No separate account category. 8.75 percent or above 1/4 of 1 percentage point plus the higher of 7. No minimum denomination. Until July 1, 1979, a minimum of $1,000 was the bill rate or 4-week average bill rate required for savings and loan associations, except in areas where mutual savings banks permitted lower minimum denominations. This restriction was removed for The maximum allowable rates in May for commercial banks and thrifts based on deposits maturing in less than 1 year, effective Nov. 1, 1973. the bill rate were as follows: May 4, 13.03; May 11, 12.486; May 18, 12.437; May 8. No minimum denomination. Until July 1, 1979, the minimum denomination 25, 11.927; May 29, 11.839. The maximum allowable rates in May for commercial was $1,000 except for deposits representing funds contributed to an individual banks and thrifts based on the 4-week average bill rate were as follows: May 4, retirement account (IRA) or a Keogh (H.R. 10) plan established pursuant to the 13.009; May 11, 12.843; May 18, 12.71; May 25, 12.47; May 29, 12.172. Internal Revenue Code. The $1,000 minimum requirement was removed for such 15. Effective Oct. 1, 1981, depository institutions are authorized to issue all accounts in December 1975 and November 1976 respectively. savers certificates (ASCs) with a 1-year maturity and an annual investment yield 9. Between July 1, 1973, and Oct. 31, 1973, certificates maturing in 4 years or equal to 70 percent of the average investment yield for 52-week U.S. Treasury bills more with minimum denominations of $1,000 had no ceiling; however, the amount as determined by the auction of 52-week Treasury bills held immediately before of such certificates that an institution could issue was limited to 5 percent of its the calendar week in which the certificate is issued. A maximum less than 9.50 total time and savings deposits. Sales in excess of that amount, as well as certificates percent, commercial banks may pay lifetime exclusion of $1,000 ($2,000 on a joint of less than $1,000, were limited to the 6Vi percent ceiling on time deposits maturing return) from gross income is generally authorized for interest income from ASCs. in 2Vl years or more. Effective Nov. 1,1973, ceilings were reimposed on certificates The annual investment yields for ASCs issued in May (in percent) were as follows: maturing in 4 years or more with minimum denomination of $1,000. There is no May 16, 9.87. limitation on the amount of these certificates that banks can issue. 16. Effective Aug. 1, 1981, commercial banks may pay interest on any variable 10. Accounts subject to fixed-rate ceilings. See footnote 8 for minimum denom- ceiling nonnegotiable time deposit with an original maturity of 2Vi years to less ination requirements. than 4 years at a rate not to exceed '/4 of 1 percent below the average 2Vi-year 11. Effective Jan. 1, 1980, commercial banks are permitted to pay the same rate yield for U.S. Treasury securities as determined and announced by the Treasury as thrifts on IRA and Keogh accounts and accounts of governmental units when Department immediately before the date of deposit. Effective May 1, 1982, the such deposits are placed in the new 2'/i-year or more variable-ceiling certificates maximum maturity for this category of deposits was reduced to less than 3Vi years. or in 26-week money market certificates regardless of the level of the Treasury bill Thrift institutions may pay interest on these certificates at a rate not to exceed the rate. average 2Vi -year yield for Treasury securities as determined and announced by 12. Must have a maturity of exactly 26 weeks and a minimum denomination of the Treasury Department immediately before the date of deposit. If the announced $10,000, and must be nonnegotiable. average 2Vi-year yield for Treasury securities is 9.25 percent and thrift institutions 13. Effective May 1, 1982, depository institutions were authorized to offer time 9.50 percent for these deposits. These deposits have no required minimum denomdeposits that have a minimum denomination of $7,500 and a maturity of 91 days. ination, and interest may be compounded on them. The ceiling rates of interest at The ceiling rate of interest on these deposits is indexed to the discount rate (auction which they may be offered vary biweekly. The maximum allowable rates in May average) on most recently issued 91-day Treasury bills for thrift institutions and (in percent) for commercial banks were as follows: May 11, 13.6; May 25, 13.4; the discount rate minus 25 basis points for commercial banks. The rate differential and for thrifts: May 11, 13.85; May 25, 13.65. ends 1 year from the effective date of these instruments and is suspended at any 17. Between Jan. 1, 1980, and Aug. 1, 1981, commercial banks, and thrifts were time the Treasury bill discount rate is 9% or below for four consecutive auctions. authorized to offer variable ceiling nonnegotiable time deposits with no required The maximum allowable rates in May (in percent) for commercial banks were as minimum denomination and with maturities of 2Vi years or more. Effective Jan. follows: May 1, 12.219; May 4, 12.425; May 11, 11.998; May 18, 11.939; May 25, 1, 1980, the maximum rate for commercial banks was 3/4 percentage point below 11.23; May 29, 11.27; and for thrift institutions: May 1, 12.469; May 4, 12.675; the average yield on 2Vi-year U.S. Treasury securities; the ceiling rate for thrifts May 11, 12.248; May 18, 12.189; May 25, 11.48; May 29, 11.52. was 1/4 percentage point higher than that for commercial banks. Effective Mar. 1, 14. Commercial banks and thrift institutions were authorized to offer money 1980, a temporary ceiling of 1V/4 percent was placed on these accounts at commarket time deposits effective June 1, 1978. These deposits have a minimum de- mercial banks and 12 percent on these accounts at savings and loans. Effective nomination requirement of $10,000 and a maturity of 26 weeks. The ceiling rate June 2, 1980, the ceiling rates for these deposits at commercial banks and savings of interest on these deposits is indexed to the discount rate (auction average) on and loans was increased Vi percentage point. The temporary ceiling was retained, most recently issued 26-week U.S. Treasury bills. Interest on these certificates may and a minimum ceiling of 9.25 percent for commercial banks and 9.50 percent for not be compounded. Effective for all 6-month money market certificates issued thrifts was established. Digitized for FRASER NOTES are continued on opposite page. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Nonfinancial Statistics • June 1982 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS Millions of dollars 1981 1982 TTyyppee ooff ttrraannssaaccttiioonn 11997799 11998800 11998811 Oct. Nov. Dec. Jan. Feb. Mar. Apr. U.S. GOVERNMENT SECURITIES Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 15,998 7,668 13,899 241 1,765 2,170 0 1,017 474 4,149 2 Gross sales 6,855 7,331 6,746 1,157 0 0 2,756 868 995 0 3 Exchange 0 0 0 0 0 0 0 0 0 0 4 Redemptions 2,900 3,389 1,816 200 16 0 600 0 600 0 Others within 1 year1 5 Gross purchases 3,203 912 317 0 0 80 0 20 0 132 6 Gross sales 0 0 23 0 0 0 0 0 0 0 7 Maturity shift 17,339 12,427 13,794 425 1,389 887 542 2,633 900 333 8 Exchange -11,308 -18,251 -12,869 0 -3,047 -754 0 -940 -1,479 -525 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 0 100 526 0 50 0 570 11 Gross sales 0 0 0 0 0 0 0 0 0 0 12 Maturity shift -12,693 -8,909 -10,299 -425 -1,057 -887 -542 -974 -900 -333 13 Exchange 7,508 13,412 10,117 0 2,325 754 0 765 1,479 525 5 to 10 years 14 Gross purchases 523 703 393 0 0 165 0 0 0 81 IS Gross sales 0 0 0 0 0 0 0 0 0 0 16 Maturity shift -4,646 -3,092 -3,495 0 -332 0 0 -1,659 0 0 1/ Exchange 2,181 2,970 1,500 0 400 0 0 100 0 0 Over 10 years 18 Gross purchases 454 811 379 0 0 108 0 0 0 52 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 0 322 0 0 75 0 0 All maturities1 22 Gross purchases 22,325 12,232 16,690 241 1,865 3,049 0 11,,008877 474 4,984 23 Gross sales 6,855 7,331 6,769 1,157 0 0 2,756 886688 995 0 24 Redemptions 5,500 3,389 1,816 200 16 0 600 0 600 0 Matched transactions 25 Gross sales 627,350 674,000 589,312 58,581 42,012 54,098 51,132 28,033 38,946 44,748 26 Gross purchases 624,192 675,496 589,647 58,372 41,900 54,044 51,717 28,258 38,650 44,759 Repurchase agreements 2277 Gross purchases 107,051 113,902 79,920 3,902 9,505 14,180 12,962 18,656 8,595 18,396 28 Gross sales 106,968 113,040 78,733 3,902 7,709 12,760 12,914 21,919 6,998 14,724 29 Net change in U.S. government securities 6,896 3,869 9,626 -1,325 3,534 4,415 -2,724 -2,820 179 8,667 FEDERAL AGENCY OBLIGATIONS Outright transactions 30 Gross purchases 853 668 494 0 494 0 0 0 0 0 31 Gross sales 399 0 0 0 0 0 0 0 0 0 32 Redemptions 134 145 108 15 10 4 68 32 13 5 Repurchase agreements 33 Gross purchases 37,321 28,895 13,320 787 1,607 1,647 800 872 554 2,033 34 Gross sales 36,960 28,863 13,576 787 1,288 1,697 935 1,006 471 1,119 35 Net change in federal agency obligations 681 555 130 -15 802 -54 -203 -166 70 909 BANKERS ACCEPTANCES 36 Repurchase agreements, net 116 73 -582 0 744 -549 402 -597 488 280 37 Total net change in System Open Market Account 7,693 4,497 9,175 -1,340 5,080 3,812 -2,524 -3,583 737 9,856 1. Both gross purchases and redemptions include special certificates created NOTE. Sales, redemptions, and negative figures reduce holdings of the System when the Treasury borrows directly from the Federal Reserve, as follows (millions Open Market Account; all other figures increase such holdings. Details may not of dollars): March 1979. 2,600. add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Banks All 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements Millions of dollars Wednesday End of month Account 1982 1982 Apr. 28 May 5 May 12 May 19 May 26 Mar. Apr. May Consolidated condition statement ASSETS 1 Gold certificate account 11,150 11,149 11,149 11,149 11,149 11,150 11,149 11,149 2 Special drawing rights certificate account 3,818 3,818 3,818 3,818 3,818 3,568 3,818 3,818 3 Coin 403 396 393 397 393 432 411 386 Loans 4 To depository institutions 6,180 1,251 1,757 1,058 1,367 2,646 1,799 1,058 5 Other 0 0 0 0 0 0 0 0 Acceptances 6 Held under repurchase agreements 192 0 0 944 0 488 768 0 Federal agency obligations 7 Bought outright 9,008 9,008 9,008 9,008 9,008 9,013 9,008 9,008 8 Held under repurchase agreements 348 0 0 417 0 82 996 0 U.S. government securities Bought outright 9 Bills 49,687 49,948 50,561 49,074 49,481 45,543 49,704 50,123 10 Notes 60,389 61,143 61,143 61,143 61,143 60,359 61,143 61,143 11 Bonds 18,090 18,141 18,141 18,141 18,141 18,090 18,141 18,141 12 Total1 128,166 129,232 129,845 128,358 128,765 123,992 128,988 129,407 13 Held under repurchase agreements 2,205 0 0 2,933 0 1,597 5,269 0 14 Total U.S. government securities 130,371 129,232 129,845 131,291 128,765 125,589 134,257 129,407 15 Total loans and securities 146,099 139,491 140,610 142,718 139,140 137,818 146,828 139,473 16 Cash items in process of collection 9,427 9,102 8,564 7,599 6,977 7,989 8,449 8,033 17 Bank premises 515 514 515 516 518 510 514 518 Other assets 18 Denominated in foreign currencies2 4,981 5,109 4,782 4,790 4,794 4,953 5,591 4,880 19 All other3 4,236 4,121 4,357 3,288 3,145 3,566 4,289 3,237 20 Total assets 180,629 173,700 174,188 174,275 169,934 169,986 181,049 171,494 LIABILITIES 21 Federal Reserve notes 130,500 131,386 132,511 132,165 132,619 128,855 130,189 132,619 Deposits 22 Depository institutions 26,673 25,892 26,954 26,978 23,082 26,357 24,702 23,463 23 U.S. Treasury—General account 10,869 4,354 3,051 3,697 2,969 2,866 12,239 2,540 24 Foreign—Official accounts 264 283 227 241 272 421 966 308 25 Other 484 510 541 507 545 425 450 523 26 Total deposits 38,290 31,039 30,773 31,423 26,868 30,069 38,357 26,834 27 Deferred availability cash items 6,557 6,129 5,862 5,591 5,329 6,107 6,942 6,257 28 Other liabilities and accrued dividends4 2,374 2,149 2,121 2,174 2,184 2,155 2,497 2,643 29 Total liabilities 177,721 170,703 171,267 171,353 167,000 167,186 177,985 168,353 CAPITAL ACCOUNTS 30 Capital paid in 1,308 1,307 1,309 1,315 1,316 1,298 1,308 1,316 31 Surplus 1,278 1,278 1,278 1,278 1,278 1,278 1,278 1,278 32 Other capital accounts 322 412 334 329 340 224 478 547 33 Total liabilities and capital accounts 180,629 173,700 174,188 174,275 169,934 169,986 181,049 171,494 34 MEMO: Marketable U.S. government securities held in custody for foreign and international account 90,775 91,410 90,529 91,892 90,885 92,825 90,609 91,025 Federal Reserve note statement 35 Federal Reserve notes outstanding (issued to bank) 152,898 152,768 152,760 152,894 153,095 152,039 152,734 152,932 36 LESS: Held by bank5 22,398 21,382 20,249 20,729 20,476 23,184 22,545 20,313 37 Federal Reserve notes, net 130,500 131,386 132,511 132,165 132,619 128,855 130,189 132,619 Collateral for Federal Reserve notes 38 Gold certificate account 11,150 11,149 11,149 11,149 11,149 11,150 11,149 11,149 39 Special drawing rights certificate account 3,818 3,818 3,818 3,818 3,818 3,568 3,818 3,818 40 Other eligible assets 0 0 0 0 0 64 0 0 41 U.S. government and agency securities 115,532 116,419 117,544 117,198 117,652 114,073 115,222 117,652 42 Total collateral 130,500 131,386 132,511 132,165 132,619 128,855 130,189 132,619 1. Includes securities loaned—fully guaranteed by U.S. government securities 3. Includes special investment account at Chicago of Treasury bills maturing pledged with Federal Reserve Banks—and excludes (if any) securities sold and within 90 days. scheduled to be bought back under matched sale-purchase transactions. 4. Includes exchange-translation account reflecting the monthly revaluation at 2. Includes U.S. government securities held under repurchase agreement against market exchange rates of foreign-exchange commitments. receipt of foreign currencies and foreign currencies warehoused for the U.S. Treas- 5. Beginning September 1980, Federal Reserve notes held by the Reserve Bank ury. Assets shown in this line are revalued monthly at market exchange rates. are exempt from the collateral requirement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Nonfinancial Statistics • June 1982 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holdings Millions of dollars Wednesday End of month TTyyppee aanndd mmaattuurriittyy ggrroouuppiinnggss 1982 1982 Apr. 28 May 5 May 12 May 19 May 26 Mar. 31 Apr. 30 May 28 1 Loans—Total 6,180 1,251 1,757 1,058 1,367 2,646 1.799 1,058 2 Within 15 days 6.140 1,104 1,596 1,043 1,342 2,552 1,704 11,,001100 3 16 days to 90 days 40 147 161 15 25 94 95 4488 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Acceptances—Total 192 0 0 944 0 488 768 0 6 Within 15 days 192 0 0 944 0 488 768 0 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 130,371 129,232 129,845 131,291 128,765 125,589 134,257 129,407 10 Within 15 days1 6,451 8,036 8,903 7,638 4,273 3,889 9,832 3,090 11 16 days to 90 days 27,186 24,162 23,869 27,230 26,955 25,506 26,284 28,912 12 91 days to 1 year 33,915 33,335 33,374 31,156 32,270 33,389 34,442 32,138 13 Over 1 year to 5 years 35,918 36,665 36,665 37,790 37,790 35,903 36,665 37,790 14 Over 5 years to 10 years 10,192 10,274 10,274 10,717 10,717 10,193 10,274 10,717 15 Over 10 years 16,709 16,760 16,760 16,760 16,760 16,709 16,760 16,760 16 Federal agency obligations—Total 9.356 9,008 9,008 9.425 9,008 9,095 10,004 9,008 17 Within 15 days1 433 0 140 616 105 326 1,082 105 18 16 days to 90 days 465 593 499 440 394 400 465 510 19 91 days to 1 year 1.592 1,549 1,628 1,628 1,661 1,460 1,591 1,545 20 Over 1 year to 5 years 5,413 5,413 5,288 5,288 5,387 5,444 5,413 5,387 21 Over 5 years to 10 years 919 919 919 919 927 934 919 927 22 Over 10 years 534 534 534 534 534 531 534 534 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 1982 BBaannkk ggrroouupp,, oorr ttyyppee ooff ccuussttoommeerr 11997788 11997799 11998800 Dec. Jan. Feb. Mar. Apr. Debits to demand deposits1 (seasonally adjusted) 11111111 AAAAAAAAllllllllllllllll ccccccccoooooooommmmmmmmmmmmmmmmeeeeeeeerrrrrrrrcccccccciiiiiiiiaaaaaaaallllllll bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 40,297.8 49,775.0 63.013.4 86,430.0 83,804.4 85,274.3 83,617.4 83,404.1 22222222 MMMMMMMMaaaaaaaajjjjjjjjoooooooorrrrrrrr NNNNNNNNeeeeeeeewwwwwwww YYYYYYYYoooooooorrrrrrrrkkkkkkkk CCCCCCCCiiiiiiiittttttttyyyyyyyy bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 15,008.7 18,512.7 25.192.5 34,937.3 35,117.6 35,983.8 34,218.3 35.238.0 33333333 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 25,289.1 31,262.3 37,820.9 51,492.7 48,686.8 49,290.5 49,399.1 48.166.1 Debits to savings deposits2 (not seasonally adjusted) 44444444 AAAAAAAATTTTTTTTSSSSSSSS////////NNNNNNNNOOOOOOOOWWWWWWWW33333333 17.1 83.3 158.4 903.5 934.7 836.7 935.4 1.072.5 55555555 BBBBBBBBuuuuuuuussssssssiiiiiiiinnnnnnnneeeeeeeessssssssssssssss44444444 56.7 77.3 93.4 117.9 104.4 95.2 115.4 103.0 66666666 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrrssssssss55555555 359.7 515.2 605.3 597.0 636.8 534.8 586.9 609.6 77777777 AAAAAAAAllllllllllllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss 432.9 675.8 857.2 1,618.4 1,675.8 1,466.7 1,637.6 1,785.1 Demand deposit turnover1 (seasonally adjusted) 88888888 AAAAAAAAllllllllllllllll ccccccccoooooooommmmmmmmmmmmmmmmeeeeeeeerrrrrrrrcccccccciiiiiiiiaaaaaaaallllllll bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 139.4 163.5 201.6 309.2 293.4 307.1 304.7 301.3 99999999 MMMMMMMMaaaaaaaajjjjjjjjoooooooorrrrrrrr NNNNNNNNeeeeeeeewwwwwwww YYYYYYYYoooooooorrrrrrrrkkkkkkkk CCCCCCCCiiiiiiiittttttttyyyyyyyy bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 541.9 646.2 813.7 1,156.8 1,129.0 1,252.1 1,211.7 1,255.3 1111111100000000 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrr bbbbbbbbaaaaaaaannnnnnnnkkkkkkkkssssssss 96.8 113.3 134.3 206.6 191.2 198.0 200.7 193.7 Savings deposit turnover2 (not seasonally adjusted) 1111111111111111 AAAAAAAATTTTTTTTSSSSSSSS////////NNNNNNNNOOOOOOOOWWWWWWWW33333333 7.0 7.8 9.7 14.6 14.3 13.0 14.2 15.4 1111111122222222 BBBBBBBBuuuuuuuussssssssiiiiiiiinnnnnnnneeeeeeeessssssssssssssss44444444 5.1 7.2 9.3 13.9 12.5 12.1 14.6 13.2 1111111133333333 OOOOOOOOtttttttthhhhhhhheeeeeeeerrrrrrrrssssssss55555555 1.7 2.7 3.4 4.0 4.2 3.6 3.9 4.0 1111111144444444 AAAAAAAAllllllllllllllll aaaaaaaaccccccccccccccccoooooooouuuuuuuunnnnnnnnttttttttssssssss 1.9 3.1 4.2 7.4 7.5 6.6 7.3 7.8 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 Board of Governors of the Federal Reserve System, Washington, D.C. 20551. authorized for automatic transfer to demand deposits (ATS). ATS data availability Debits and turnover data for savings deposits are not available before July 1977. starts with December 1978. 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 1982 item D 19 e 7 c 8 . D 19 e 7 c 9 . D 19 e 8 c 0 . D 19 e 8 c 1 . Jan. Feb. Mar. Apr. Seasonally adjusted MEASURES1 1 Ml 363.2 389.0 414.5 440.9 448.6 447.3 448.2 452.3 2 M2 1,403.9 1,518.9 1,656.1 1,822.4 1,840.9 1,847.5 1,864.8' 1,879.7 3 M3 1,629.0 1,779.3 1,963.1 2,187.8 2,204.0R 2,214.6' 2,235.5' 2,256.6 4 L2 1,938.9 2,153.9 2,370.4 2,640.9R 2,658.6 n.a. n.a. n.a. SELECTED COMPONENTS 5 Currency 97.4 106.1 116.2 123.1 123.8 124.6 125.1 126.3 6 Traveler's checks3 3.5 3.7 4.2 4.3 4.3 4.3 4.4 4.4 7 Demand deposits 253.9 262.2 267.2 236.4 239.3 234.5 233.0 233.0 8 Other checkable deposits7 8.4 16.9 26.9 77.0 81.1 83.8 85.7 88.6 9 Savings deposits4 479.9 421.7 398.9 343.6 348.8 348.6 350.7 350.5 10 Small-denomination time deposits5 533.9 652.6 751.7 854.7 852.3 859.5 870.1 881.6 11 Large-denomination time deposits6 194.6 221.8 257.9 300.4 302.7 308.1R 312.2 315.9 Not seasonally adjusted MEASURES1 12 Ml 372.5 398.8 424.6 451.2 453.4 437.1 440.0 455.4 13 M2 1,408.5 1,524.6 1,662.4 1,829.1 1,848.8 1,842.4 1,861.5 1,886.9 14 M3 1,637.5 1,789.2 1,973.8 2,199.6 2,216.8 2,215.6' 2,237.1' 2,264.6 15 L2 1,946.6 2,162.8 2,380.2 2,651.9' 2,673.1 n.a. n.a. n.a. SELECTED COMPONENTS 16 Currency 99.4 108.2 118.3 125.4 123.3 123.0 123.8 125.6 17 Traveler's checks3 3.3 3.5 3.9 4.1 4.1 4.1 4.2 4.2 18 Demand deposits 261.5 270.1 275.1 243.3 243.6 228.5 228.2 236.1 19 Other checkable deposits7 8.4 17.0 27.2 78.4 82.5 81.4 83.8 89.5 20 Overnight RPs and Eurodollars8 24.1 26.3 35.0 38.1 43.3 43.0 43.3 40.6 21 Savings deposits4 478.0 420.5 398.0 343.0 346.8 344.5 346.1 348.1 22 Small-denomination time deposits5 531.1 649.7 748.9 851.7 857.5' 868.5 879.7 888.1 Money market mutual funds 23 General purpose and broker/dealer 7.1 34.3 61.8 150.8 154.4 155.4 158.4 160.7 24 Institution only 3.1 9.3 13.9 33.7 32.5 30.5 31.5 31.5 25 Large-denomination time deposits6 198.6 226.0 262.3 305.5 307.6 314.3' 317.1' 316.6 1. Composition of the money stock measures is as follows: 4. Savings deposits exclude NOW and ATS accounts at commercial banks and Ml: Averages of daily figures for (1) currency outside the Treasury, Federal thrift institutions and CUSDs at credit unions. Reserve Banks, and the vaults of commercial banks; (2) traveler's checks of non- 5. Small-denomination time deposits—including retail RPs—are those issued in bank issuers; (3) demand deposits at all commercial banks other than those due amounts of less than $100,000. to domestic banks, the U.S. government, and foreign banks and official institutions 6. Large-denomination time deposits are those issued in amounts of $100,000 less cash items in the process of collection and Federal Reserve float; and (4) or more and are net of the holdings of domestic banks, thrift institutions, the U.S. negotiable order of withdrawal (NOW) and automatic transfer service (ATS) ac- government, money market mutual funds, and foreign banks and official institucounts at banks and thrift institutions, credit union share draft (CUSD) accounts, tions. and demand deposits at mutual savings banks. 7. Includes ATS and NOW balances at all institutions, credit union share draft M2: Ml plus savings and small-denomination time deposits at all depository balances, and demand deposits at mutual savings banks. institutions, overnight repurchase agreements at commercial banks, overnight Eu- 8. Overnight (and continuing contract) RPs are those issued by commercial rodollars held by U.S. residents other than banks at Caribbean branches of member banks to other than depository institutions and money market mutual funds (general banks, and balances of money market mutual funds (general purpose and broker/ purpose and broker/dealer), and overnight Eurodollars are those issued by Cadealer). ribbean branches of member banks to U.S. residents other than depository insti- M3: M2 plus large-denomination time deposits at all depository institutions, term tutions and money market mutual funds (general purpose and broker/dealer). RPs at commercial banks and savings and loan associations, and balances of institution-only money market mutual funds. NOTE. Latest monthly and weekly figures are available from the Board's H.6 2. L: M3 plus other liquid assets such as term Eurodollars held by U.S. residents (508) release. Back data are available from the Banking Section, Division of Reother than banks, bankers acceptances, commercial paper. Treasury bills and other search and Statistics, Board of Governors of the Federal Reserve System, Washliquid Treasury securities, and U.S. savings bonds. ington, D.C. 20551. 3. Outstanding amount of U.S. dollar-denominated traveler's checks of nonbank issuers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • June 1982 1.22 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1981 1982 1978 1979 1980 item Dec. Dec. Dec. July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 35.08 36.37 39.01 39.73 39.81 40.31 40.12 40.15 40.53 41.28 40.93 41.09 41.18 2 Nonborrowed reserves 34.22 34.90 37.32 38.05 38.39 38.86 38.94 39.49 39.89 39.76 39.14 39.53 39.61 3 Required reserves 34.85 36.04 38.49 39.39 39.52 39.90 39.84 39.81 40.21 40.86 40.62 40.73 40.91 4 Monetary base4 134.7 145.0 158.0 162.5 162.9 163.7 163.8 164.3 165.8 167.4 167.9 168.5 169.8 Not seasonally adjusted 5 Total reserves3 35.66 36.97 39.70 39.64 39.48 40.09 40.22 40.33 41.26 42.70 40.74 40.53 41.09 6 Nonborrowed reserves 34.80 35.50 38.01 37.96 38.06 38.63 39.04 39.67 40.63 41.18 38.95 38.98 39.52 7 Required reserves 35.43 36.65 39.19 39.30 39.19 39.67 39.94 39.99 40.94 42.28 40.44 40.18 40.81 8 Monetary base4 137.4 147.9 161.0 163.3 163.2 163.3 163.8 165.6 168.9 168.5 166.1 166.5 168.9 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS5 9 Total reserves3 41.68 43.91 40.66 41.01 41.02 40.59 40.71 40.95 41.92 43.20 41.29 39.23 39.56 10 Nonborrowed reserves 40.81 42.43 38.97 39.33 39.60 39.13 39.53 40.29 41.29 41.69 39.50 37.68 37.99 11 Required reserves 41.45 43.58 40.15 40.67 40.73 40.18 40.43 40.60 41.60 42.78 40.98 38.88 39.28 12 Monetary base4 144.6 156.2 162.4 165.4 165.4 163.9 164.3 166.3 169.7 169.1 166.8 165.4 167.6 1. Reserve 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 1982 1981 1982 r. Dec.2 Jan.2 Feb.2 Mar.2 Apr.2 Dec.2 Jan.2 Feb.2 Mar.2 Apr.2 Seasonally adjusted Not seasonally adjusted 1 Total loans and securities3 1,316.3 1,320.1 1,332.44 1,342.2s 1,352.3 1,326.1 1,322.6 1,328.2" 1,337.0s 1,351.1 2 U.S. Treasury securities 111.0 114.1 115.I4 114.45 116.6 111.4 113.6 115.64 116.1s 118.7 3 Other securities 231.4 231.5 232.04 233.1s 234.0 232.8 231.7 231.54 232.6s 234.0 4 Total loans and leases3 973.9 974.5 985.24 994.85 1,001.7 981.8 977.3 981.14 988.4s 998.4 5 Commercial and industrial loans 358.0 360.3 365.6 369.7 372.8 360.1 360.1 364.2 368.8 375.0 6 Real estate loans 285.7 287.5 289.84 292.35 293.9 286.6 288.1 289.64 291.5s 293.0 7 Loans to individuals 185.1 185.7 185.7 186.4 186.9 186.4 186.3 185.1 184.7 185.5 8 Security loans 21.9 20.6 20.8 20.9 20.9 22.7 20.8 20.1 20.3 20.9 9 Loans to nonbank financial institutions 30.2 31.1 31.4 32.7 33.3 31.2 31.2 31.5 32.2 33.0 10 Agricultural loans 33.0 33.3 33.8 34.3 34.4 33.0 33.1 33.3 33.6 33.8 11 Lease financing receivables 12.7 13.0 13.1 13.1 13.1 12.7 13.0 13.1 13.1 13.1 12 All other loans 47.2 43.0 45.0 45.3 46.5 49.2 44.8 44.1 44.2 44.1 MEMO: 13 Total loans and securities plus loans sold36 1,319.1 1,323.0 11,,333355..22** 11,,334455..11ss 1,355.1 1,328.9 1,325.5 11..333311..0044 11,,333399..99ss 1,353.9 14 Total loans plus loans sold3,6 976.7 977.4 988.14 997.65 1,004.6 984.7 980.2 983.94 991.2s 1,001.3 15 Total loans sold to affiliates6 2.8 2.9 2.8 2.8 2.9 2.8 2.9 2.8 2.8 2.9 16 Commercial and industrial loans plus loans sold6 360.2 362.5 367.8 371.9 375.1 362.3 362.3 366.5 371.0 377.2 17 Commercial and industrial loans sold6 2.2 2.2 2.2 2.2 2.3 2.2 2.2 2.2 2.2 2.3 18 Acceptances held 8.9 8.7 8.9 9.6 10.3 9.8 9.1 9.1 9.3 9.5 19 Other commercial and industrial loans 349.1 351.6 356.6 360.1 362.5 350.3 351.0 355.2 359.5 365.4 20 To U.S. addressees7 334.9 339.5 344.1 347.4 350.0 334.3 338.3 342.6 346.9 352.8 21 To non-U.S. addressees 14.2 12.0 12.5 12.6 12.6 16.1 12.7 12.6 12.6 12.7 22 Loans to foreign banks 19.0 15.4 16.6 16.1 15.2 20.0 16.1 16.2 15.7 14.7 1. Includes domestically chartered banks; U.S. branches and agencies of foreign 5. The merger of a commercial bank with a mutual savings bank beginning Mar. banks, New York investment companies majority owned by foreign banks, and 17,1982, increased total loans and securities $0.6 billion; U.S. Treasury securities, Edge Act corporations owned by domestically chartered and foreign banks. $0.1 billion; other securities $0.1 billion; total loans and leases, $0.4 billion; and 2. Beginning December 1981, shifts of foreign loans and securities from U.S. real estate loans, $0.4 billion. banking offices to international banking facilities (IBFs) reduced the levels of 6. Loans sold are those sold outright to a bank's own foreign branches, nonseveral items. Seasonally adjusted data that include adjustments for the amounts consolidated nonbank affiliates of the bank, the bank's holding company (if not a shifted from domestic offices to IBFs are available in the Board's G.7 (407) sta- bank), and nonconsolidated nonbank subsidiaries of the holding company. tistical release (available from Publications Services, Board of Governors of the 7. United States includes the 50 states and the District of Columbia. Federal Reserve System, Washington, D.C. 20551). 3. Excludes loans to commercial banks in the United States. NOTE. Data are prorated averages of Wednesday estimates for domestically 4. The merger of a commercial bank with a mutual savings bank beginning Feb. chartered banks, based on weekly reports of a sample of domestically chartered 24, 1982, increased total loans and securities $1.0 billion; U.S. Treasury securities, banks and quarterly reports of all domestically chartered banks. For foreign-related $0.1 billion; other securities, $0.1 billion; total loans and leases, $0.8 billion; and institutions, data are averages of month-end estimates based on weekly reports real estate loans, $0.7 billion. from large agencies and branches and quarterly reports from all agencies, branches, investment companies, and Edge Act corporations engaged in banking. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Nonfinancial Statistics • June 1982 1.24 MAJOR NONDEPOSIT FUNDS OF COMMERCIAL BANKS1 Monthly averages, billions of dollars 1980 1981 1982 SSoouurrccee Dec. June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Total nondeposit funds 1 Seasonally adjusted2 121.9 124.1 122.7 123.3 119.8 116.3 116.2 98.7 89.5 87.8 83.5 83.3 2 Not seasonally adjusted 122.5 126.0 124.6 127.4 125.0 118.3 120.8 99.1 87.9 88.1 84.3 84.0 Federal funds, RPs, and other borrowings from nonbanks3 3 Seasonally adjusted 111.0 115.3 113.8 110.5 108.2 109.1 110.1 114.4 116.2 113.7 113.5 112.9 4 Not seasonally adjusted 111.6 117.2 115.7 114.6 113.3 111.1 114.7 114.8 114.6 114.0 114.3 113.6 5 Net balances due to foreign-related institutions, not seasonally adjusted 8.2 5.9 6.2 10.1 8.9 4.5 3.4 -18.5 -29.6 -28.8 -32.9 -32.5 6 Loans sold to affiliates, not seasonally adjusted4 2.7 2.9 2.7 2.6 2.7 2.7 2.7 2.8 2.9 2.8 2.8 2.9 MEMO 7 Domestically chartered banks net positions with own foreign branches, not seasonally adjusted5 -14.7 -14.6 -14.6 -10.2 -12.3 -15.4 -14.9 -22.4 -27.1 -26.1 -29.0 -29.8 8 Gross due from balances 37.5 42.5 45.0 43.7 44.5 45.5 47.9 54.9 57.1 57.2 59.2 59.9 9 Gross due to balances 22.8 27.8 30.4 33.5 32.2 30.1 32.9 32.5 30.0 31.1 30.1 30.1 10 Foreign-related institutions net positions with directly related institutions, not seasonally adjusted6 22.9 20.6 20.8 20.4 21.2 19.9 18.4 3.9 -2.5 -2.7 -3.8 -2.7 11 Gross due from balances 32.5 36.9 37.4 38.0 40.1 38.3 39.1 48.1 50.0 50.5 50.0 49.1 12 Gross due to balances 55.4 57.4 58.2 58.4 61.3 58.2 57.4 52.0 47.5 47.8 46.2 46.4 Security RP borrowings 13 Seasonally adjusted' 64.0 70.8 69.2 65.7 63.0 64.9 65.0 70.0 73.0 71.0 71.4 71.9 14 Not seasonally adjusted 62.3 70.5 68.9 67.6 65.9 64.7 67.3 68.2 69.2 69.1 70.0 70.4 U.S. Treasury demand balances8 15 Seasonally adjusted 9.5 11.4 10.9 8.3 9.3 11.1 12.1 11.8 13.5 22.2 17.5 13.6 16 Not seasonally adjusted 9.0 12.5 10.8 7.5 10.9 13.3 9.7 11.3 14.5 20.1 15.6 13.8 Time deposits, $100,000 or more9 17 Seasonally adjusted 267.0 302.4 313.1 321.7 324.7 324.8 323.4 324.0 324.3 327.2 331.9 334.4 18 Not seasonally adjusted 272.4 298.2 304.7 314.8 320.2 322.6 324.6 330.3 330.6 335.3 337.2 335.6 1. Commercial banks are those in the SO states and the District of Columbia 8. Includes U.S. Treasury demand deposits and Treasury tax-and-loan notes at with national or state charters plus agencies and branches of foreign banks, New commercial banks. Averages of daily data. York investment companies majority owned by foreign banks, and Edge Act cor- 9. Averages of Wednesday figures. porations owned by domestically chartered and foreign banks. 2. Includes seasonally adjusted federal funds, RPs, and other borrowings from NOTE. Beginning December 1981, shifts of foreign assets and liabilities from U.S. nonbanks and not seasonally adjusted net Eurodollars and loans to affiliates. In- banking offices to international banking facilities (IBFs) reduced levels for several cludes averages of Wednesday data for domestically chartered banks and averages items as follows: lines 1 and 2, $22.4 billion; lines 3 and 4, $1.7 billion; line 5, of current and previous month-end data for foreign-related institutions. $20.7 billion; line 7, $3.1 billion; and line 10, $17.6 billion. For January 1982, levels 3. Other borrowings are borrowings on any instrument, such as a promissory were reduced as follows: lines 1 and 2, $29.6 billion; lines 3 and 4, $2.4 billion; note or due bill, given for the purpose of borrowing money for the banking business. line 5, $27.2 billion; line 7, $4.7 billion; and line 10, $22.4 billion. This includes borrowings from Federal Reserve Banks and from foreign banks, For January 1982, levels were reduced as follows: lines 1 and 2, $29.6 billion; term federal funds, overdrawn due from bank balances, loan RPs, and participa- lines 3 and 4, $2.4 billion; line 5, $27.2 billion; line 7, $4.7 billion; and line 10, tions in pooled loans. Includes averages of daily figures for member banks and $22.4 billion. averages of current and previous month-end data for foreign-related institutions. For February 1982 the levels were reduced as follows: lines 1 and 2, $30.3 billion; 4. Loans initially booked by the bank and later sold to affiliates that are still lines 3 and 4, $2.4 billion; line 5, $27.9 billion; line 7, $4.8 billion; and line 10, held by affiliates. Averages of Wednesday data. $23.1 billion. For March the levels were reduced as follows: lines 1 and 2, $30.8 5. Averages of daily figures for member and nonmember banks. billion; lines 3 and 4, $2.4 billion; line 5, $28.4 billion; line 7, $4.8 billion and line 6. Averages of daily data. 10, $23.6 billion. For April the levels were reduced as follows: lines 1 and 2, $31.3 7. Based on daily average data reported by 122 large banks. billion; lines 3 and 4, $2.4 billion; line 5, $28.9 billion; line 7, $4.9 billion; and line 10, $23.9 billion. 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 1981 1982 AAccccoouunntt July Aug. Sept. Oct. Nov. Dec.' Jan.r Feb/ Mar.' Apr.' May DOMESTICALLY CHARTERED COMMERCIAL BANKS1 1 Loans and securities, excluding interbank 1,214.1 1,221.3 1,242.5 1,239.9 1,249.4 1,267.4 1,261.2 1,271.2 1,285.8 1,292.6 1,300.7 2 Loans, excluding interbank 881.2 888.7 906.2 902.9 912.8 926.4 920.1 929.1 939.9 947.2 954.3 3 Commercial and industrial 298.3 301.2 308.5 308.5 312.6 320.3 321.0 325.6 332.4 336.7 342.0 4 Other 582.9 587.5 597.8 594.3 600.2 606.0 599.1 603.5 607.5 610.5 612.3 5 U.S. Treasury securities 113.1 111.3 109.4 110.0 106.7 109.8 111.5 112.3 114.5 113.0 111.5 6 Other securities 219.8 221.4 226.9 227.1 229.9 231.3 229.6 229.8 231.4 232.4 234.9 7 Cash assets, total 156.8 168.4 190.2 149.8 162.8 173.1 155.3 151.6 164.5 153.6 153.0 8 Currency and coin 19.5 20.0 19.2 19.7 18.3 22.0 19.8 19.7 18.9 19.9 20.0 9 Reserves with Federal Reserve Banks 27.0 25.4 26.8 25.3 26.1 28.0 30.2 24.8 25.7 25.5 21.7 10 Balances with depository institutions . 52.7 61.4 68.9 49.3 52.0 54.5 50.3 51.0 55.9 52.4 54.9 11 Cash items in process of collection ... 57.6 61.6 75.4 55.5 66.4 68.6 55.0 56.1 64.0 55.8 56.3 12 Other assets2 162.8 168.3 184.5 175.5 194.4 211.2 197.0 201.9 219.3 206.6 209.8 13 Total assets/total liabilities and capital... 1,533.7 1,558.0 1,617.2 1,565.2 1,606.7 1,651.8 1,613.5 1,624.7 1,669.5 1,652.9 1,663.5 14 Deposits 1,160.0 1,181.3 1,224.4 1,177.1 1,206.0 1,240.3 1,205.8 1,213.7 1,250.8 1,231.0 1,244.0 15 Demand 333.7 342.5 378.0 324.0 339.2 363.9 322.3 316.7 338.3 315.5 315.4 16 Savings 219.2 217.2 216.7 214.0 217.9 222.4 223.0 222.5 229.9 226.6 227.6 17 Time 607.2 621.6 629.7 639.1 648.9 654.0 660.5 674.4 682.6 688.9 701.0 18 Borrowings 160.4 164.4 176.9 174.5 179.3 190.2 191.9 191.0 196.4 201.1 195.0 19 Other liabilities 86.3 89.8 91.4 89.3 95.2 91.7 89.7 92.5 94.4 92.4 93.9 20 Residual (assets less liabilities) 127.0 122.5 124.4 124.3 126.2 129.6 126.1 127.5 128.0 128.4 130.6 MEMO: 21 U.S. Treasury note balances included in borrowing 7.2 6.4 15.3 13.9 5.6 13.6 16.7 17.1 10.9 16.6 7.1 22 Number of banks 14,719 14,720 14,720 14,740 14,743 14,744 14,690 14,702 14,709 14,710 14,722 ALL COMMERCIAL BANKING INSTITUTIONS3 23 Loans and securities, excluding interbank 1,297.9 1,306.7 1,334.3 1,324.7 1,335.5 1,330.0 1,321.6 1,331.5 1,345.8 1,350.7 1,358.5 24 Loans, excluding interbank 960.8 969.8 993.8 983.6 994.7 984.5 975.8 984.4 995.1 1,000.6 1,007.5 25 Commercial and industrial 350.3 354.2 366.3 361.7 365.5 360.8 360.3 364.6 372.4 374.7 379.3 26 Other 610.4 615.6 627.5 621.9 629.2 623.7 615.5 619.7 622.7 625.8 628.3 27 U.S. Treasury securities 115.3 113.5 111.6 111.9 108.8 112.5 114.5 115.5 117.6 116.1 114.3 28 Other securities 221.8 223.4 228.9 229.2 232.0 233.0 231.4 231.6 233.1 234.1 236.6 29 Cash assets, total 187.8 205.2 234.5 165.4 179.3 188.1 170.0 165.8 178.8 168.1 167.7 30 Currency and coin 19.5 20.1 19.2 19.7 18.3 22.0 19.8 19.7 18.9 19.9 20.0 31 Reserves with Federal Reserve Banks 28.0 26.6 28.1 26.5 27.5 29.3 31.3 26.1 26.9 26.8 23.0 32 Balances with depository institutions . 81.4 95.7 110.7 62.5 66.0 67.1 62.7 63.0 68.0 64.6 67.3 33 Cash items in process of collection ... 58.9 62.9 76.5 56.6 67.4 69.6 56.1 57.1 65.0 56.8 57.3 34 Other assets2 228.4 233.7 251.0 244.0 267.0 288.7 274.2 278.1 295.2 280.3 285.8 35 Total assets/total liabilities and capital... 1,714.1 1,745.6 1,819.8 1,734.0 1,781.7 1,806.8 1,765.8 1,775.5 1,819.9 1,799.1 1,812.0 36 Deposits 1,221.5 1,250.3 1,293.7 1,224.6 1,254.1 1,288.7 1,251.5 1,258.3 1,295.0 1,272.7 1,286.1 37 Demand 362.4 378.3 412.2 337.1 352.6 377.7 335.1 329.4 350.8 327.9 327.9 38 Savings 219.5 217.5 216.9 214.3 218.1 222.6 223.2 222.8 230.2 226.9 227.8 39 Time 639.7 654.5 664.7 673.1 683.4 688.3 693.1 706.2 714.0 717.9 730.4 40 Borrowings 218.7 223.5 242.7 236.8 246.2 250.8 253.5 255.9 260.0 260.8 255.2 41 Other liabilities 145.0 147.4 157.0 146.4 153.3 135.6 132.8 131.8 135.0 135.3 138.1 42 Residual (assets less liabilities) 128.9 124.4 126.3 126.3 128.1 131.5 128.1 129.4 129.9 130.3 132.5 MEMO: 43 U.S. Treasury note balances included in borrowing 7.2 6.4 15.3 13.9 5.6 13.6 16.7 17.1 10.9 16.6 7.1 44 Number of banks 15,188 15,189 15,189 15,209 15,212 15,213 15,185 15.201 15,214 15,215 15,235 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 DomesticN onfinancial Statistics • June 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 Account Mar.31 Apr. 7 Apr. 14 Apr. 21 Apr. 28P May 5 P May. 12' May 19 P May 26 p 1 Cash items in process of collection 50,878 46,630 50,417 47,527 44,829 48,215 45,426 45,192 44,478 2 Demand deposits due from banks in the United States 6,878 6,705 6,621 6,496 6,454 6,416 6,224 6,425 6,554 3 All other cash and due from depository institutions .. 33,434 30,705 32,959 34,901 33,228 32,594 35,201 35,136 31,344 4 Total loans and securities 611,738 621,229 617,531 614,297 610,585 623,485 616,115 612,546 614,891 Securities 5 U.S. Treasury securities 38,566 41,435 40,153 39,538 36,999 38,157 37,628 37,378 36,395 6 Trading account 8,221 10,154 9,099 9,458 7,451 8,110 8,518 8,195 7,076 7 Investment account, by maturity 30,345 31,282 31,054 30,080 29,548 30,047 29,110 29,183 29,319 8 One year or less 10,489 11,200 10,966 10,486 10,120 10,083 9,696 9,317 9,483 9 Over one through five years 17,622 17,677 17,696 17,335 17,291 17,804 17,260 17,545 17,519 10 Over five years 2,234 2,404 2,392 2,258 2,137 2,159 2,154 2,321 2,317 11 Other securities 79,254 80,242 79,391 79,218 78,769 80,907 79,222 79,114 80,968 12 Trading account 3,034 4,326 3,590 3,468 2,824 5,300 3,611 3,456 4,767 13 Investment account 76,220 75,916 75,800 75,750 75,944 75,607 75,612 75,657 76,201 14 U.S. government agencies 16,187 15,971 15,887 15,862 15,967 15,933 15,963 16,024 15,829 15 States and political subdivisions, by maturity 57,150 57,056 57,020 56,964 57,033 56,768 56,693 56,624 57,291 16 One year or less 8,038 7,797 7,810 7,856 7,847 7,787 7,696 7,679 8,262 17 Over one year 49,113 49,259 49,210 49,107 49,186 48,981 48,998 48,946 49,029 18 Other bonds, corporate stocks and securities 2,882 2,888 2,894 2,924 2,944 2,906 2,955 3,008 3,080 Loans 19 Federal funds sold1 33,983 37,673 36,916 34,700 33,191 38,948 34,782 31,752 31,641 20 To commercial banks 23,612 26,229 26,338 22,816 21,800 27,661 24,376 22,030 21,256 21 To nonbank brokers and dealers in securities 8,173 8,750 7,920 9,326 8,588 8,363 7,477 7,133 7,625 22 To others 2,198 2,694 2,659 2,558 2,803 2,925 2,928 2,588 2,760 23 Other loans, gross 472,470 474,506 473,713 473,535 474,322 478,209 477,273 477,121 478,717 24 Commercial and industrial 202,720 204,395 203,825 204,872 204,731 207,842 207,426 207,485 208,256 25 Bankers acceptances and commercial paper 4,531 4,751 4,784 4,144 4,421 4,453 4,406 4,941 5,131 26 All other 198,190 199,644 199,041 200,728 200,310 203,389 203,021 202,544 203,125 27 U.S. addressees 191,668 193,022 192,453 194,020 193,550 196,854 196,353 195,917 196,391 28 Non-U.S. addressees 6,522 6,622 6,588 6,708 6,760 6,535 6,668 6,627 6,734 29 Real estate 127,319 127,410 127,844 128,171 128,538 128,506 128,709 128,907 128,959 30 To individuals for personal expenditures 71,780 71,660 71,726 72,010 72,100 72,090 71,771 71,780 71,777 To financial institutions 31 Commercial banks in the United States 6,243 6,694 6,243 6,306 6,195 6,027 6,038 5,996 6,132 32 Banks in foreign countries 7,656 7,187 7,567 6,881 7,166 7,225 7,245 7,391 6,649 33 Sales finance, personal finance companies, etc ... 11,750 11,473 11,627 11,112 11,762 11,311 11,181 10,893 11,222 34 Other financial institutions 16,232 16,364 16,250 16,223 16,334 16,370 16,518 16,396 16,225 3 3 6 5 T T o o o n t o h n e b r a s n f k o r b p ro u k rc e h rs a s a in n g d a d n e d a le c r a s r r i y n i n s g e c s u e r c it u ie r s i ties2... 2 5 , , 5 2 6 2 2 0 6 2, , 5 7 7 8 4 5 5 2, , 5 9 9 0 2 5 5 2 , , 5 5 8 4 1 5 4 2, , 5 8 8 9 5 9 2 5 , , 5 2 9 5 2 6 2 5 , , 6 7 6 9 6 7 2 5 , , 6 0 0 8 2 7 6 2 , , 2 5 9 9 2 2 37 To finance agricultural production 5,934 5,938 5,935 6,019 6,004 6,108 6,127 6,185 6,222 38 All other 15,052 14,025 14,198 13,814 14,006 14,882 13,794 14,399 14,390 39 LESS: Unearned income 5,800 5,860 5,876 5,891 5,889 5,843 5,868 5,896 5,901 40 Loan loss reserve 6,737 6,768 6,766 6,803 6,807 6,892 6,922 6,923 6,929 41 Other loans, net 459,934 461,878 461,071 460,841 461,626 465,473 464,482 464,302 465,887 42 Lease financing receivables 11,135 11,123 11,109 11,080 11,074 11,088 11,078 11,084 11,083 43 All other assets 113,265 112,802 108,474 109,529 108,919 112,974 113,309 112,072 109,263 44 Total assets 827,328 829,195 827,112 823,830 815,089 834,772 827,353 822,456 817,613 Deposits 45 Demand deposits 172,924 171,473 170,656 164,172 157,940 166,522 160,003 162,126 158,255 46 Mutual savings banks 679 653 591 539 456 583 553 536 515 47 Individuals, partnerships, and corporations 131,882 130,178 130,531 125,500 120,484 124,032 122,148 121,654 119,970 48 States and political subdivisions 5,133 4,582 4,672 4,420 4,640 5,386 4,189 4,324 5,000 49 U.S. government 1,118 2,022 2,667 2,182 2,958 3,577 2,056 2,980 1,848 50 Commercial banks in the United States 19,712 19,720 18,235 17,569 16,143 18,514 17,102 17,971 17,725 51 Banks in foreign countries 6,391 6,111 6,152 6,175 6,316 6,768 6,590 6,755 6,365 52 Foreign governments and official institutions 1,040 1,036 925 1,018 883 1,085 1,013 933 1,043 53 Certified and officers' checks 6,968 7,171 6,882 6,768 6,058 6,577 6,352 6,972 5,788 54 Time and savings deposits 372,465 373,580 372,917 373,739 373,733 374,624 375,802 376,728 379,595 55 Savings 80,446 82,458 82,225 81,355 78,902 80,043 79,562 79,590 79,297 56 Individuals and nonprofit organizations 76,968 78,983 78,842 78,003 75,539 76,654 76,066 76,182 75,784 57 Partnerships and corporations operated for profit 2,885 2,873 2,831 2,798 2,807 2,807 2,812 22,,777766 2,796 58 Domestic governmental units 574 585 535 538 539 564 669 660088 694 59 All other 19 17 18 16 16 16 15 24 22 60 Time 292,018 291,122 290,692 292,384 294,831 294,582 296,239 297,139 300,298 61 Individuals, partnerships, and corporations 255,503 254,843 254,070 255,514 257,536 257,534 258,670 259,904 262,526 62 States and political subdivisions 21,045 20,558 20,821 21,006 21,378 21,285 21,446 21,349 21,650 63 U.S. government 399 440 438 544 562 560 528 512 538 64 Commercial banks in the United States 10,720 10,854 10,909 10,946 11,023 10,821 11,063 10,789 10,948 65 Foreign governments, official institutions, and banks 4,351 4,427 4,454 4,374 4,332 4,382 4,531 4,585 4,636 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 1,421 1,575 3,664 2,135 4,408 356 858 175 464 6 6 7 8 A Tr ll e a o s t u h r e y r t l a ia x b -a il n it d ie -l s o a fo n r n b o o t r e r s o wed money3 14 8 2 , ,1 0 5 8 0 0 15 2 1 , ,7 7 1 8 2 2 15 2 0 , , 4 44 8 9 9 14 1 3 2 , , 7 0 8 3 3 4 13 1 8 2 , , 4 4 7 3 9 2 15 1 1 2 , , 9 1 2 2 2 5 15 1 0 1 , , 5 2 9 1 8 4 14 5 8 , , 1 3 5 5 0 1 14 4 4 , , 6 7 8 3 7 0 69 Other liabilities and subordinated notes and debentures 74,809 72,439 71,282 72,516 72,797 73,440 72,892 74,214 74,035 70 Total liabilities 771,848 773,562 771,458 768,379 759,788 778,990 771,368 766,744 761,766 71 Residual (total assets minus total liabilities)4 55,480 55,632 55,654 55,451 55,301 55,781 55,985 55,711 55,847 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 4. Not 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 insti- Digitized for FoRthAer SanEaRlyt ic 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 1982 AAccccoouunntt Mar. 31 Apr. 7 Apr. 14 Apr. 21 Apr. 2SP May 5p May 12P May 19P May 26? 1 Cash items in process of collection 48,016 43,798 47,316 44,445 41,721 45,342 42,782 42,580 41,821 2 Demand deposits due from banks in the United States.... 6,194 6,082 6,042 5,862 5,852 5,763 5,616 5,807 5,862 3 All other cash and due from depository institutions 30,751 28,659 30,505 32,387 30,617 30,141 32,793 32,490 28,720 4 Total loans and securities 572,571 581,215 578,237 574,968 571,939 583,854 576,792 573,682 576,225 Securities 5 U.S. Treasury securities 35,462 38,313 37,115 36,549 34,024 35,205 34,637 34,438 33,470 6 Trading account 8,075 10,000 8,978 9,358 7,367 7,995 8,362 8,094 6,991 7 Investment account, by maturity 27,386 28,313 28,137 27,191 26,657 27,210 26,276 26,344 26,479 8 One year or less 9,406 10,131 9,925 9,461 9,095 9,072 8,684 8,340 8,531 9 Over one through five years 16,042 16,072 16,116 15,768 15,705 16,252 15,711 15,956 15,906 10 Over five years 1,939 2,110 2,096 1,963 1,856 1,886 1,880 2,048 2,042 11 Other securities 72,854 73,867 73,054 72,863 72,436 74,553 72,885 72,731 74,576 12 Trading account 2,941 4,218 3,504 3,344 2,723 5,166 3,504 3,333 4,650 13 Investment account 69,913 69,649 69,550 69,519 69,713 69,387 69,381 69,398 69,926 14 U.S. government agencies 14,991 14,783 14,698 14,670 14,789 14,751 14,779 14,824 14,637 15 States and political subdivision, by maturity 52,217 52,158 52,139 52,111 52,167 51,917 51,831 51,753 52,396 16 One year or less 7,230 7,035 7,047 7,127 7,121 7,001 6,904 6,883 7,450 17 Over one year 44,987 45,124 45,091 44,984 45,046 44,917 44,927 44,870 44,946 18 Other bonds, corporate stocks and securities 2,704 2,708 2,713 2,738 2,757 2,719 2,770 2,821 2,893 Loans 19 Federal funds sold1 29,882 32,761 32,670 30,372 29,622 34,511 30,601 28,064 28,221 20 To commercial banks 20,208 22,192 22,817 19,182 18,963 23,869 20,987 19,075 18,548 21 To nonbank brokers and dealers in securities 7,578 7,939 7,278 8,728 7,969 7.812 6,780 6,495 7,015 22 To others 2,096 2,630 2,575 2,462 2,690 2,830 2,834 2,494 2,658 23 Other loans, gross 445,922 447,882 447,017 446,852 447,531 451,298 450,436 450,242 451,762 24 Commercial and industrial 192,580 194,134 193,556 194,620 194,436 197,424 197,080 197,120 197,821 25 Bankers acceptances and commercial paper 4,358 4,586 4,620 3,987 4,276 4,316 4,267 4,800 5,002 26 All other 188,221 189,548 188,936 190,634 190,160 193,108 192,814 192,320 192,819 27 U.S. addressees 181,779 183,014 182,444 184,022 183,496 186,669 186,243 185,795 186,195 28 Non-U.S. addressees 6,442 6,534 6,492 6,612 6,663 6,439 6,570 6,525 6,624 29 Real estate 120,286 120,418 120,774 121,061 121,414 121,383 121,563 121,749 121,799 30 To individuals for personal expenditures 64,422 64,310 64,398 64,692 64,765 64,706 64,398 64,416 64,378 To financial institutions 31 Commercial banks in the United States 5,997 6,457 5,989 6,052 5,989 5,835 5,846 5,834 5,968 32 Banks in foreign countries 7,575 7,102 7,493 6,820 7,105 7,141 7,169 7,307 6,573 33 Sales finance, personal finance companies, etc 11,567 11,276 11,431 10,923 11,565 11,123 10,998 10,713 11,041 34 Other financial institutions 15,837 15,965 15,854 15,821 15,938 15,973 16,118 15,992 15,817 35 To nonbank brokers and dealers in securities 5,177 6,739 5,863 5,534 4,851 5,205 5,739 5,038 6,240 36 To others for purchasing and carrying securities2 2,334 2,350 2,373 2,330 2,369 2,374 2,452 2,390 2,376 37 To finance agricultural production 5,794 5,792 5,790 5,871 5,855 5,956 5,969 6,025 6,060 38 All other 14,355 13,339 13,496 13,127 13,244 14,178 13,103 13,658 13,690 39 LESS; Unearned income 5,169 5,202 5,216 5,228 5,229 5,189 5,213 5,238 5,245 40 Loan loss reserve 6,379 6,406 6,404 6,439 6,444 6,524 6,554 6,554 6,560 41 Other loans, net 434,374 436,274 435,398 435,184 435,857 439,585 438,669 438,449 439,957 42 Lease financing receivables 10,796 10,785 10,771 10,741 10,736 10,748 10,739 10,740 10,739 43 All other assets 109,540 109,011 104,637 105,734 105,115 109,181 109,512 108,419 105,518 44 Total assets 777,870 779,551 777,509 774,138 765,981 785,029 778,235 773,720 768,885 Deposits 45 Demand deposits 160,948 159,392 158,362 152,125 146,116 154,614 148,817 150,902 147,023 46 Mutual savings banks 657 625 576 526 445 558 534 521 500 47 Individuals, partnerships, and corporations 122,563 120,881 121,163 116,316 111,611 114,990 113,283 112,996 111,093 48 States and political subdivisions 4,546 3,919 4,006 3,848 4,033 4,732 3,729 3,802 4,500 49 U.S. government 978 1,755 2,216 1,626 2,270 3,248 1,892 2,701 1,693 50 Commercial banks in the United States 18,162 18,253 16,818 16,185 14,836 17,023 15,755 16,573 16,353 51 Banks in foreign countries 6,324 6,053 6,098 6,112 6,253 6,693 6,516 6,677 6,307 52 Foreign governments and official institutions 1,036 1,031 921 1,013 882 1,083 1,008 926 1,034 53 Certified and officers' checks 6,680 6,874 6,563 6,499 5,785 6,288 6,099 6,706 5,543 54 Time and savings deposits 349,527 350,476 349,783 350,587 350,740 351,538 352,509 353,523 356,171 55 Savings 74,194 76,099 75,861 75,063 72.809 73,857 73,420 73,463 73,207 56 Individuals and nonprofit organizations 71,022 72,886 72,739 71,973 69,702 70,732 70,185 70,306 69,948 57 Partnerships and corporations operated for profit .... 2,655 2,652 2,605 2,572 2,588 2,587 2,588 2,559 2,576 58 Domestic governmental units 497 543 499 503 503 521 632 574 662 59 All other 19 17 18 16 16 16 15 24 22 60 Time 275,334 274,377 273,922 275,524 277,931 277,681 279,089 280,060 282,964 61 Individuals, partnerships, and corporations 240,912 240,165 239,378 240,714 242,722 242,665 243,609 244,890 247,286 62 States and political subdivisions 19,323 18,872 19,127 19,328 19,677 19,625 19,726 19,637 19,914 63 U.S. government 343 380 380 488 506 508 477 461 483 64 Commercial banks in the United States 10,404 10,533 10,583 10,620 10,693 10,500 10,746 10,487 10,644 65 Foreign governments, official institutions, and banks . 4,351 4,427 4,454 4,374 4,332 4,382 4,531 4,585 4,636 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 1,299 1,552 3,634 2,037 4,244 331 808 130 433 67 Treasury tax-and-loan notes 7,428 2,574 2,314 11,154 11,566 11,251 10,411 4,738 4,348 68 All other liabilities for borrowed money3 133,929 142,946 142,010 135,694 130,722 143,735 142,408 140,124 136,589 69 Other liabilities and subordinated notes and debentures 72,727 70,482 69,257 70,599 70,848 71,323 70,847 72,131 72,036 70 Total liabilities 725,858 727,422 725,360 722,196 714,236 732,792 725,801 721,547 716,600 71 Residual (total assets minus total liabilities)4 52,011 52,129 52,149 51,942 51,744 52,237 52,434 52,173 52,285 1. Includes securities purchased under agreements to resell. 4. Not a measure of equity capital for use in capital adequacy analysis or for 2. Other than financial institutions and brokers and dealers. other analytic uses. 3. Includes federal funds purchased and securities sold under agreement to repurchase; for information on these liabilities at banks with assets of $1 billion or more on Dec. 31, 1977, see table 1.13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • June 1982 1.28 LARGE WEEKLY REPORTING COMMERCIAL BANKS IN NEW YORK CITY Assets and Liabilities Millions of dollars, Wednesday figures 1982 Mar. 31 Apr. 7 Apr. 14 Apr. 21 Apr. 28p May 5P May 12 P May 19? May 26p 1 Cash items in process of collection 16,353 13,643 14,967 14,511 13,450 13,276 12,289 13,683 13,600 2 Demand deposits due from banks in the United States 1,155 879 992 1,144 1,248 1,195 1,081 1,147 1,276 kB All other cash and due from depository institutions 6,319 6,798 7,944 7,139 5,439 7,511 8,290 6,928 4,282 4 Total loans and securities' 135,537 134,814 135,822 132,576 133,920 137,508 134,608 134,254 135,964 Securities 5 U.S. Treasury securities2 6 Trading account2 7 Investment account, by maturity 7,052 7,369 7,142 6,414 6,335 6,812 6,030 6,471 6,480 8 One year or less 1,768 1,990 1,728 1,416 1,628 1,629 1,135 1,129 1,141 9 Over one through five years 4,735 4,677 4,722 4,408 4,238 4,731 4,437 4,680 4,649 10 Over five years 549 703 693 590 468 453 458 662 690 11 Other securities2 12 Trading account2 13 Investment account 14,583 14,574 14,597 14,534 14,594 14,469 14,463 14,499 15,123 14 U.S. government agencies 2,152 2,122 2,107 2,070 2,092 2,036 2,036 2,086 2,062 15 States and political subdivision, by maturity .. 11,573 11,582 11,624 11,607 11,646 11,607 11,572 11,538 12,118 16 One year or less 2,031 2,044 2,056 2,075 2,105 2,063 2,027 1,984 2,561 17 Over one year 9,542 9,539 9,569 9,532 9,540 9,543 9,545 9,554 9,556 18 Other bonds, corporate stocks and securities.. 858 869 865 856 856 826 855 875 944 Loans 19 Federal funds sold3 8,026 6,773 7,894 7,051 8,014 9,250 7,378 7,210 7,488 20 To commercial banks 4,038 3,068 4,246 2,482 3,882 4,789 3,465 3,722 3,685 21 To nonbank brokers and dealers in securities ... 3,224 2,906 2,682 3,536 3,036 3,157 2,624 2,396 2,572 22 To others 765 798 966 1,033 1,097 1,304 1,289 1,092 1,232 23 Other loans, gross 109,487 109,754 109,863 108,285 108,674 110,672 110,460 109,808 110,616 24 Commercial and industrial 56,560 57,216 56,948 57,468 57,290 58,957 58,590 58,151 58,677 25 Bankers acceptances and commercial paper... 1,598 1,662 1,573 1,465 1,480 1,478 1,468 1,546 1,770 26 All other 54,962 55,555 55,375 56,002 55,810 57,478 57,122 56,605 56,908 27 U.S. addressees 53,412 53,870 53,751 54,403 54,257 56,091 55,691 55,104 55,474 28 Non-U.S. addressees 1,550 1,685 1,624 1,599 1,553 1,388 1,431 1,500 1,434 29 Real estate 17,814 17,793 17,793 17,848 18,033 17,961 18,017 18,072 18,129 30 To individuals for personal expenditures 11,106 11,112 11,124 11,182 11,184 11,210 11,194 11,187 11,182 To financial institutions 31 Commercial banks in the United States 2,103 2,203 1,795 1,875 1,813 1,857 1,718 1,637 1,678 32 Banks in foreign countries 3,157 2,779 3,096 2,540 2,966 2,994 3,089 3,296 2,639 33 Sales finance, personal finance companies, etc. 5,316 4,984 5,197 4,733 5,293 4,830 4,818 4,561 4,731 34 Other financial institutions 4,582 4,639 4,727 4,704 4,777 4,789 4,887 4,818 4,729 35 To nonbank brokers and dealers in securities ... 3,261 4,187 4,168 3,466 2,810 3,214 3,564 3,265 3,892 36 To others for purchasing and carrying securities4 599 617 621 602 620 637 697 632 642 37 To finance agricultural production 451 432 427 431 403 400 405 414 404 38 All other 4,537 3,790 3,964 3,435 3,485 3,822 3,480 3,775 3,912 39 LESS: Unearned income 1,453 1,479 1,484 1,501 1,491 1,466 1,473 1,495 1,507 40 Loan loss reserve 2,159 2,176 2,190 2,208 2,207 2,229 2,250 2,239 2,238 41 Other loans, net 105,875 106,099 106,189 104,576 104,976 106,977 106,736 106,074 106,872 42 Lease financing receivables 2,308 2,305 2,302 2,302 2,302 2,282 2,278 2,278 2,276 43 All other assets5 44,977 48,118 44,721 45,940 44,584 48,193 46,888 46,764 43,812 44 Total assets 206,649 206,558 206,748 203,614 200,943 209,965 205,434 205,054 201,210 Deposits 45 Demand deposits 47,751 46,123 44,481 42,353 40,714 43,568 40,603 43,774 41,772 46 Mutual savings banks 309 275 285 250 208 238 259 267 247 47 Individuals, partnerships, and corporations 33,336 31,746 30,870 29,269 28,438 29,253 27,348 29,150 27,750 48 States and political subdivisions 682 399 425 408 400 684 372 409 966 49 U.S. government 208 472 654 521 789 876 613 728 426 50 Commercial banks in the United States 4,671 4,691 4,074 3,440 2,948 3,676 3,408 3,986 4,238 51 Banks in foreign countries 4,795 4,624 4,615 4,605 4,739 5,119 5,026 5,085 4,788 52 Foreign governments and official institutions.... 812 799 653 748 617 853 699 697 814 53 Certified and officers' checks 2,938 3,117 2,904 3,110 2,575 2,868 2,878 3,453 2,542 54 Time and savings deposits 66,584 67,705 67,293 67,828 68,213 67,873 68,728 69,467 68,498 55 Savings 9,579 9,848 9,889 9,829 9,462 9,536 9,553 9,614 9,679 56 Individuals and nonprofit organizations 9,253 9,495 9,547 9,491 9,118 9,195 9,138 9,225 9,249 57 Partnerships and corporations operated for profit 225 233 230 225 228 230 229 227 230 58 Domestic governmental units 99 119 110 111 114 110 183 160 198 59 All other 2 1 2 2 2 2 2 2 2 60 Time 57,005 57,857 57,404 57,999 58,751 58,337 59,175 59,854 58,819 61 Individuals, partnerships, and corporations ... 48,258 49,033 48,607 49,119 49,654 49,407 50,000 50,857 49,764 62 States and political subdivisions 2,295 2,219 2,235 2,232 2,381 2,342 2,331 2,273 2,336 63 U.S. government 92 116 116 117 110 114 114 104 124 64 Commercial banks in the United States 4,196 4,301 4,258 4,315 4,456 4,279 4,451 4,324 4,300 65 Foreign governments, official institutions, and banks 2,164 2,188 2,188 2,217 2,151 2,195 2,280 2,295 2,294 Liabilities for borrowed money 66 Borrowings from Federal Reserve Banks 300 488 2,350 1,030 1,610 675 336655 67 Treasury tax-and-loan notes 2,224 688 792 3,340 3,674 3,396 3,200 1,364 11,,337755 68 All other liabilities for borrowed money6 42,002 45,798 46.663 43,166 41,154 49,076 46,900 44,685 4433,,332288 69 OtheT liabilities and subordinated notes and debentures 30,217 28,205 27,631 28,533 28,303 28,558 27,718 28,226 28,405 70 Total liabilities 189,078 189,007 189,210 186,251 183,667 192,472 187,824 187,518 183,744 71 Residual (total assets minus total liabilities)7 17,571 17,551 17,538 17,363 17,276 17,493 17,610 17,536 17,466 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 All 1.29 LARGE WEEKLY REPORTING COMMERCIAL BANKS Balance Sheet Memoranda Millions of dollars, Wednesday figures 1982 AAccccoouunntt Mar. 31 Apr. 7 Apr. 14 Apr. 21 Apr. 28p May 5 p May 12 P May 19 p May 26 P BANKS WITH ASSETS OF $750 MILLION OR MORE 1 Total loans (gross) and securities adjusted1 594,420 600,932 597,592 597,869 595,285 602,533 598,491 597,339 600,332 2 Total loans (gross) adjusted1 476,599 479,255 478,048 479,114 479,517 483,469 481,640 480,848 482,970 3 Demand deposits adjusted2 101,216 103,101 99,337 96,894 94,010 96,216 95,419 95,983 94,204 4 Time deposits in accounts of $100,000 or more 186,381 184,933 184,007 185,113 187,107 186,137 187,475 187,982 190,903 5 Negotiable CDs 133,677 132,007 131,093 132,176 133,651 132,496 133,617 133,886 136,064 6 Other time deposits 52,704 52,926 52,914 52,937 53,456 53,641 53,857 54,096 54,839 7 Loans sold outright to affiliates3 2,858 2,860 2,835 2,877 2,881 2,843 2,793 2,798 2,693 8 Commercial and industrial 2,211 2,260 2,233 2,260 2,276 2,252 2,236 2,265 2,148 9 Other 646 601 602 617 605 591 557 533 545 BANKS WITH ASSETS OF $1 BILLION OR MORE 10 Total loans (gross) and securities adjusted1 557,914 564,175 561,051 561,403 558,660 565,864 561,726 560,566 563,514 11 Total loans (gross) adjusted1 449,599 451,994 450,881 451,991 452,200 456,105 454,204 453,397 455,467 12 Demand deposits adjusted2 93,791 95,585 92,011 89,870 87,288 89,001 88,387 89,047 87,156 13 Time deposits in accounts of $100,000 or more 177,986 176,576 175,672 176,762 178,752 177,826 178,958 179,565 182,254 14 Negotiable CDs 128,636 126,954 126,063 127,120 128,634 127,500 128,548 128,874 130,912 15 Other time deposits 49,350 49,622 49,610 49,642 50,119 50,327 50,410 50,690 51,342 16 Loans sold outright to affiliates3 2,781 2,776 2,749 2,781 2,784 2,752 2,695 2,701 2,598 17 Commercial and industrial 2,151 2,192 2,164 2,181 2,196 2,176 2,154 2,185 2,073 18 Other 630 584 586 600 588 575 541 516 525 BANKS IN NEW YORK CITY 19 Total loans (gross) and securities adjusted14 133,008 133,199 133,455 131,927 131,922 134,558 133,147 132,629 134,345 20 Total loans (gross) adjusted1 111,372 111,256 111,715 110,979 110,993 113,277 112,654 111,659 112,742 21 Demand deposits adjusted2 26,519 27,318 24,786 23,880 23,526 25,740 24,293 25,378 23,508 22 Time deposits in accounts of $100,000 or more 43,718 44,388 43,926 44,405 45,138 44,502 45,400 46,028 45,029 23 Negotiable CDs 32,868 33,515 33,049 33,627 34,181 33,494 34,466 35,162 34,093 24 Other time deposits 10,850 10,872 10,876 10,778 10,957 11,008 10,933 10,866 10,936 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 DomesticN onfinancial Statistics • June 1982 1.291 LARGE WEEKLY REPORTING BRANCHES AND AGENCIES OF FOREIGN BANKS Assets and Liabilities Millions of dollars, Wednesday figures 1982 Apr. 7 Apr. 14 Apr. 21 Apr. 28p May 5' May 12^ May 19p 1 Cash and due from depository institutions 6,061 5,880 5,879 6,074 5,813 5,560 5,902 5,865 2 Total loans and securities 48,374 47,849 46,271 44,749 44,967 44,669 43,871 43,710 3 U.S. Treasury securities 2,526 2,316 2,295 2,298 2,522 2,484 2,497 2,453 4 Other securities 785 765 759 750 766 766 769 757 5 Federal funds sold1 3,904 3,886 3,265 2,335 2,936 3,177 2,317 2,777 6 To commercial banks in U.S 3,623 3,571 2,960 2,103 2,714 2,881 2,120 2,596 7 To others 281 314 305 232 221 296 197 180 8 Other loans, gross 41,159 40,882 39,951 39,365 38,742 38,242 38,288 37,723 9 Commercial and industrial 20,164 19,676 19,678 19,550 18,884 18,806 18,498 18,701 10 Bankers acceptances and commercial paper 3,645 3,619 3,727 3,619 3,372 3,419 3,311 3,298 11 All other 16,518 16,057 15,950 15,932 15,511 15,387 15,187 15,404 12 U.S. addressees 14,333 13,974 13,824 13,759 13,392 13,221 12,991 13,304 13 Non-U.S. addressees 2,185 2,083 2,126 2,173 2,119 2,166 2,196 2,099 14 To financial institutions 16,620 16,580 16,175 15,666 15,522 15,152 15,286 14,895 15 Commercial banks in U.S 13,306 13,220 13,047 12,428 12,351 12,021 12,166 11,839 16 Banks in foreign countries 2,786 2,824 2,612 2,702 2,645 2,593 2,610 2,512 17 Nonbank financial institutions 529 536 516 536 526 537 510 543 18 For purchasing and carrying securities .. 489 720 261 306 310 432 523 214 19 All other 3,886 3,906 3,838 3,842 4,028 3,852 3,980 3,913 20 Other assets (claims on nonrelated parties) 12,744 12,452 12,581 12,778 12,639 12,367 12,807 12,500 21 Net due from related institutions 12,354 12,968 12,406 12,474 11,972 12,449 11,871 12,093 22 Total assets 79,534 79,149 77,137 76,075 75,392 75,046 74,451 74,168 23 Deposits or credit balances2 23,378 23,576 23,885 22,181 21,908 22,072 21,575 20,658 24 Credit balances 247 248 209 261 244 224 273 225 25 Demand deposits 2,053 2,086 2,279 2,072 2,248 2,001 1,961 1,846 26 Individuals, partnerships, and corporations 799 932 1,023 932 994 746 760 27 Other 1,254 1,154 1,256 1,140 1,253 1,132 1,215 1,086 28 Total time and savings 21,077 21,241 21,397 19,848 19,416 19,847 19,341 18,586 29 Individuals, partnerships, and corporations 17,743 17,689 17,822 16.414 15,848 16,496 16,126 15,473 30 Other 3,335 3,553 3,575 3,433 3,568 3,351 3,214 3,113 31 Borrowings3 33,092 32,472 31,349 31,343 30,253 30,579 30,235 30,634 32 Federal funds purchased4 8.460 8,257 7,523 7,588 6,932 8,054 7,668 8,193 33 From commercial banks in U.S 7,320 7,242 6,442 6,306 5,755 6,837 6,676 6,711 34 From others 1,139 1.015 1,081 1,282 1,176 1,217 992 1,482 35 Other liabilities for borrowed money ... 24,632 24,215 23,826 23,755 23,321 22,525 22,567 22,441 36 To commercial banks in U.S 22,027 21,769 21,317 21,312 20,994 20,267 20,283 20,124 37 To others 2,606 2,446 2,509 2,443 2,327 2,258 2,283 2,317 38 Other liabilities to nonrelated parties 12,968 12,733 12,782 13,182 13,087 12,947 13,347 12,987 39 Net due to related institutions 10,096 10,368 9,121 9,369 10,144 9,448 9,294 9,888 40 Total liabilities 79,534 79,149 77,137 76,075 75,392 75,046 74,451 74,168 MEMO 41 Total loans (gross) and securities adjusted5 31,446 31,058 30,263 30,218 29,902 29,767 29,585 29,274 42 Total loans (gross) adjusted5 28,135 27,977 27,209 27,169 26,613 26,517 26,319 26,064 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. $22.2 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 All 1.30 LARGE WEEKLY REPORTING COMMERCIAL BANKS Domestic Classified Commercial and Industrial Loans Millions of dollars Outstanding Net change during IIInnnddduuussstttrrryyy ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1982 1981 1982 Jan. 27 Feb. 24 Mar. 31 Apr. 28 May 26 P Q4 Q1 Mar. Apr. MayP 1 Durable goods manufacturing 27,158 28,314 28,638 29,085 28,842 795 1,720 324 447 -243 2 Nondurable goods manufacturing 21,628 21,948 23,165 23,584 24,002 -1,613 1,367 1,217 420 418 3 Food, liquor, and tobacco 4,160 4,419 4,553 4,814 4,784 -229 350 134 261 -30 4 Textiles, apparel, and leather 4,172 4,427 4,535 4,654 4,722 -896 353 108 119 68 5 Petroleum refining 4,587 4,142 4,449 4,417 4,682 911 -418 306 -31 265 6 Chemicals and rubber 4,486 4,746 5,138 5,187 5,232 -1,408 795 392 49 45 7 Other nondurable goods 4,223 4,214 4,490 4,511 4,581 10 287 276 21 70 8 Mining (including crude petroleum and natural gas) 24,552 25,804 25,851 26,792 28,171 3,082 1,486 47 941 1,379 9 Trade 28,135 27,793 28,887 28,667 28,704 1,010 813 1,094 -220 37 10 Commodity dealers 2,297 1,802 2,322 1,858 1,873 635 30 520 -464 15 11 Other wholesale 13,252 13,172 13,584 13,557 13,489 313 617 412 -27 -68 12 Retail 12,586 12,819 12,981 13,252 13,342 62 166 163 270 90 13 Transportation, communication, and other public utilities 23,418 23,381 23,652 23,682 23,703 1,299 472 271 29 22 14 Transportation 8,739 8,890 9,163 9,100 9,070 134 550 273 -63 -30 15 Communication 4,026 4,076 4,242 4,470 4,559 419 287 166 228 89 16 Other public utilities 10,652 10,415 10,247 10,111 10,074 745 -365 -168 -136 -37 17 Construction 7,060 7,202 7,257 7,413 7,690 -53 18 55 156 277 18 Services 26,738 27,270 27,151 27,344 27,973 1,144 563 -119 193 629 19 All other1 17,178 16,883 17,178 16,929 17,110 1,046 103 294 -248 180 20 Total domestic loans 175,868 178,596 181,779 183,496 186,195 6,710 6,542 3,182 1,718 2,699 21 MEMO: Term loans (original maturity more than 1 year) included in domestic loans . 85,201 87,829 87,238 88,277 89,282 -1,019 1,952 -591 1,039 1,004 1. Includes commercial and industrial loans at a few banks with assets of $1 NOTE. New series. The 134 large weekly reporting commercial banks with dobillion or more that do not classify their loans. mestic assets of $1 billion or more as of Dec. 31, 1977, are included in this series. The revised series is on a last-Wednesday-of-the-month basis. Partly estimated historical data 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

A24 Domestic Nonfinancial Statistics • June 1982 1.31 GROSS DEMAND DEPOSITS of Individuals, Partnerships, and Corporations1 Billions of dollars, estimated daily-average balances Commercial banks TTyyppee ooff hhoollddeerr 1980 1981 11997777 11997788 1199779922 DDeecc.. DDeecc.. DDeecc.. June Sept. Dec. Mar.3 June4 Sept. Dec. 1 All holders—Individuals, partnerships, and corporations 274.4 294.6 302.2 288.6 302.0 315.S 280.8 277.5 288.9 2 Financial business 25.0 27.8 27.1 27.7 29.6 29.8 30.8 28.2 28.0 3 Nonfinancial business 142.9 152.7 157.7 145.3 151.9 162.3 144.3 148.6 154.8 4 Consumer 91.0 97.4 99.2 97.9 101.8 102.4 86.7 n a. 82.1 86.6 5 Foreign 2.5 2.7 3.1 3.3 3.2 3.3 3.4 3.1 2.9 6 Other 12.9 14.1 15.1 14.4 15.5 17.2 15.6 15.5 16.7 Weekly reporting banks 1980 1981 11997777 11997788 1199779955 DDeecc.. DDeecc.. DDeecc.. June Sept. Dec. Mar.3 June4 Sept. Dec. 7 All holders—Individuals, partnerships, and corporations 139.1 147.0 139.3 133.9 140.6 147.4 133.2 131.3 137.5 8 Financial business 18.5 19.8 20.1 20.2 21.2 21.8 21.9 20.7 21.0 9 Nonfinancial business 76.3 79.0 74.1 69.2 72.4 78.3 69.8 71.2 75.2 10 Consumer 34.6 38.2 34.3 33.9 36.0 35.6 30.6 n.1a. 28.7 30.4 11 Foreign 2.4 2.5 3.0 3.1 3.1 3.1 3.2 2.9 2.8 12 Other 7.4 7.5 7.8 7.5 7.9 8.6 7.7 7.9 8.0 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 1982 IInnssttrruummeenntt 11997777 11997788 1199779911 11998800 DDeecc.. DDeecc.. DDeecc.. DDeecc.. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Commercial paper (seasonally adjusted) 11 AAII11 iissssuueerrss 65,051 83,438 112,803 124,524 164,026 164,958 165,508 165,088 164,738 166,341 171,436 FFiinnaanncciiaall ccoommppaanniieess22 DDeeaalleerr--ppllaacceedd ppaappeerr33 22 TToottaall 8,796 12,181 17,359 19,790 30,081 30,024 30,188 29,321 30,069 31,578 32,846 33 BBaannkk--rreellaatteedd 2,132 3,521 2,784 3,561 5,640 5,735 6,045 6,526 6,865 7,429 8,273 DDiirreeccttllyy ppllaacceedd ppaappeerrAA 44 TToottaall 40,574 51,647 64,757 67,854 82,822 82,291 81,660 80,331 79,142 77,933 81,157 55 BBaannkk--rreellaatteedd 7,102 12,314 17,598 22,382 25,397 26,225 26,914 28,567 27,207 27,190 29,005 66 NNoonnffiinnaanncciiaall ccoommppaanniieess55 15,681 19,610 30,687 36,880 51,123 52,643 53,660 55,436 55,527 56,830 57,433 Bankers dollar acceptances (not seasonally adjusted) 7 Total 25,450 33,700 45,321 54,744 66,072 68,749 69,226 70,088 70,468 70,619 Holder 8 Accepting banks 10,434 8,579 9,865 10,564 10,511 11,253 10,857 10,227 11,953 12,964 9 Own bills 8,915 7,653 8,327 8,963 9,522 10,268 9,743 9,095 10,928 11,139 10 Bills bought 1,519 927 1,538 1,601 989 985 1,115 1,132 1,025 1,825 Federal Reserve Banks 11 Own account 954 1 704 776 0 0 0 0 0 0 n.a. 12 Foreign correspondents 362 664 1,382 1,791 1,428 1,408 1,442 1,427 1,530 1,379 13 Others 13,700 24,456 33,370 41,614 54,133 56,089 56,926 58,434 56,985 57,276 Basis 14 Imports into United States 6,378 8,574 10,270 11,776 14,699 14,851 14,765 14,727 15,430 14,877 15 Exports from United States 5,863 7,586 9,640 12,712 13,981 14,936 15,400 15,599 16,119 16,835 16 All other 13,209 17,540 25,411 30,257 37,391 38,962 39,061 39,762 38,919 39,907 1. A change in reporting instructions results in offsetting shifts in the dealer- 3. Includes all financial company paper sold by dealers in the open market. placed and directly placed financial company paper in October 1979. 4. As reported by financial companies that place their paper directly with inves- 2. Institutions engaged primarily in activities such as, but not limited to, com- tors. mercial, savings, and mortgage banking; sales, personal, and mortgage financing; 5. Includes public utilities and firms engaged primarily in such activities as comfactoring, finance leasing, and other business lending; insurance underwriting; and munications, construction, manufacturing, mining, wholesale and retail trade, other investment activities. transportation, and services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • June 1982 1.33 PRIME RATE CHARGED BY BANKS on Short-Term Business Loans Percent per annum Effective date Rate Effective Date Month Average Month rate 1981—June 3 20.00 1981—Nov. 17 16.50- 1981—Jan. 20.16 1981—Oct July 8 20.50 17.00 Feb. 19.43 Nov Sept. 15 20.00 20 16.50 Mar. 18.05 Dec 22 19.50 24. 16.00 Apr. 17.15 Oct. 5 19.00 Dec. 1 15.75 May 19.61 1982—Jan 13 18.00 June 20.03 Feb Nov. 3 17.50 1982—Feb. 2 16.50 July 20.39 Mar 9 17.00 18 17.00 Aug. 20.50 Apr 23 16.50 Sept. 20.08 May 1.34 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, February 1-6, 1982 Size of loan (in thousands of dollars) All Item sizes 1,000 50-99 100-499 500-999 and over SHORT-TERM COMMERCIAL AND INDUSTRIAL LOANS 1 Amount of loans (thousands of dollars) 31,600,736 879,384 560,057 686,973 2,391,858 938,120 26,144,343 2 Number of loans 167,711 120,258 18,056 10,419 13,787 1,443 3,748 3 Weighted-average maturity (months) 1.4 3.5 3.8 4.4 3.7 3.8 1.0 4 Weighted-average interest rate (percent per annum) 17.13 18.34 17.88 18.20 17.65 17.31 16.99 5 Interquartile range1 16.61-17.55 17.23-19.12 17.00-18.97 17.42-19.05 16.75-18.64 16.50-17.98 16.56-17.44 Percentage of amount of loans 6 With floating rate 40.0 35.4 46.6 57.3 64.4 70.4 36.3 7 Made under commitment 54.9 27.8 36.5 41.5 51.0 63.5 56.6 8 With no stated maturity 17.5 13.9 16.8 18.6 26.4 32.7 16.2 LONG-TERM COMMERCIAL AND INDUSTRIAL LOANS 9 Amount of loans (thousands of dollars) 3,541,678 319,977 330,461 184,046 2,707,194 10 Number of loans 22,169 19,773 1,627 274 495 11 Weighted-average maturity (months) 51.6 31.6 39.7 43.0 56.0 12 Weighted-average interest rate (percent per annum) 16.59 19.06 17.58 16.93 16.15 13 Interquartile range1 16.12-17.50 17.23-19.57 16.75-18.25 16.50-17.75 15.75-17.00 Percentage of amount of loans 14 With floating rate 69.5 32.9 61.9 76.0 74.4 15 Made under commitment 61.6 26.9 44.6 67.1 67.5 CONSTRUCTION AND LAND DEVELOPMENT LOANS 16 Amount of loans (thousands of dollars) 1,209,125 112,588 172,993 285,350 230,605 407,589 17 Number of loans 26,525 16,202 4,869 3,865 1,400 189 18 Weighted-average maturity (months) 12.9 7.8 9.8 13.4 10.5 16.3 19 Weighted-average interest rate (percent per annum) 17.86 19.90 19.37 18.84 14.83 17.68 20 Interquartile range1 17.27-19.25 17.98-20.46 18.83-20.17 18.27-19.51 75-18.54 17.23-18.27 Percentage of amount of loans 21 With floating rate 52.3 19.5 59.8 40.6 51.5 66.8 22 Secured by real estate 87.3 56.8 85.5 99.3 94.9 83.7 23 Made under commitment 50.9 55.4 26.1 28.8 51.8 75.0 24 With no stated maturity 4.6 10.8 4.4 3.7 7.8 1.8 Type of construction 25 1- to 4-family 30.0 35.4 27.5 74.4 17.3 5.8 26 Multifamily 13.3 1.8 1.6 .8 43.3 13.3 27 Nonresidential 56.6 62.8 70.8 24.8 39.4 80.9 All 250 sizes 10-24 25-19 100-249 and over LOANS TO FARMERS 28 Amount of loans (thousands of dollars) 1,266,037 138,005 166,907 164,173 194,427 216,317 386,208 29 Number of loans 57,806 36,774 11,122 4,955 2,920 1,655 380 30 Weighted-average maturity (months) 7.1 6.2 8.3 7.5 7.5 6.3 6.9 31 Weighted-average interest rate (percent per annum) 17.68 17.65 17.33 17.67 17.66 17.63 17.88 32 Interquartile range1 17.11-18.39 16.65-18.54 16.64-18.27 17.18-18.27 16.75-18.52 17.18-18.27 17.50-18.47 By purpose of loan 3 3 3 4 F O e t e h d er e r li l v iv es e t s o to ck c k 1 1 7 7 . . 5 4 7 2 1 1 8 7 . . 1 9 6 6 1 1 7 6 . . 4 7 2 8 1 17 7 . . 8 5 2 0 1 1 8 7 . . 1 3 7 1 18 ( . 2 0 ) 5 17 (2 .3 ) 8 3 3 5 6 F O a t r h m er m cu ac rr h e i n n t e r o y p e a r n a d t in e g q u e i x p p m e e n n s t e s 1 1 7 7 . . 6 9 6 3 1 1 7 7 . . 5 3 8 8 1 1 7 7 . . 2 4 9 2 1 17 7 . . 1 5 1 3 1 1 7 9 . .0 4 4 8 17 ( . 2 4 ) 4 18 (2 .2 ) 9 37 Other 17.85 17.86 17.85 18.35 17.20 17.70 17.98 1. Interest rate range that covers the middle 50 percent of the total dollar amount NOTE. For more detail, see the Board's E.2 (111) statistical release, of loans made. 2. Fewer than 10 sample loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets 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. 1982 1982, week ending IInnssttrruummeenntt 11997799 11998800 11998811 Feb. Mar. Apr. May Apr. 30 May 7 May 14 May 21 May 28 MONEY MARKET RATES 1 Federal funds12 11.19 13.36 16.38 14.78 14.68 14.94 14.45 14.72 15.53 14.97 14.67 13.70 Commercial paper3 4 2 1-month 10.86 12.76 15.69 14.62 13.99 14.38 13.79 14.04 14.25 13.98 13.78 13.15 3 3-month 10.97 12.66 15.32 14.53 13.80 14.06 13.42 13.79 13.81 13.46 13.37 13.03 4 6-month 10.91 12.29 14.76 14.27 13.47 13.64 13.02 13.46 13.36 13.01 12.94 12.76 Finance paper, directly placed3 4 5 1-month 10.78 12.44 15.30 14.41 13.73 14.17 13.49 13.85 13.88 13.70 13.50 12.89 6 3-month 10.47 11.49 14.08 13.59 12.91 13.21 12.75 13.03 13.01 12.84 12.75 12.39 7 6-month 10.25 11.28 13.73 13.58 12.89 13.09 12.61 12.90 12.90 12.74 12.60 12.19 Bankers acceptances4 5 8 3-month 11.04 12.78 15.32 14.47 13.73 13.95 13.29 13.73 13.61 13.31 13.23 12.99 9 6-month n.a. n.a. 14.66 14.09 13.33 13.49 12.90 13.33 13.17 12.84 12.82 12.75 Certificates of deposit, secondary market6 10 1-month 11.03 12.91 15.91 14.78 14.12 14.44 13.95 14.17 14.30 14.14 13.93 13.43 11 3-month 11.22 13.07 15.91 15.00 14.21 14.44 13.80 14.21 14.16 13.82 13.76 13.44 12 6-month 11.44 12.99 15.77 15.12 14.25 14.42 13.77 14.25 14.09 13.73 13.68 13.60 13 Eurodollar deposits, 3-month2 11.96 14.00 16.79 15.75 14.90 15.18 14.53 14.85 14.91 14.43 14.58 14.44 U.S. Treasury bills4 Secondary market7 14 3-month 10.07 11.43 14.03 13.48 12.68 12.70 12.09 12.42 12.54 12.38 11.90 11.54 15 6-month 10.06 11.37 13.80 13.61 12.77 12.80 12.16 12.57 12.59 12.37 11.97 11.72 16 1-year 9.75 10.89 13.14 13.11 12.47 12.50 11.98 12.30 12.29 12.11 11.83 11.71 Auction average8 17 3-month 10.041 11.506 14.077 13.780 12.493 12,821 12.148 12.469 12.675 12.248 12.189 11.480 18 6-month 10.017 11.374 13.811 13.709 12.621 12.861 12.220 12.640 12.780 12.236 12.187 11.677 1199 99..881177 1100..774488 1133..115599 1133..118800 1122..550099 1122..773311 1122..119944 1122..119944 CAPITAL MARKET RATES U.S. Treasury notes and bonds9 Constant maturities10 20 1-year 10.67 12.05 14.78 14.73 13.95 13.98 13.34 13.75 13.71 13.49 13.18 13.00 21 2-year 10.12 11.77 14.56 14.82 14.19 14.20 13.78 13.99 13.96 13.81 13.71 13.63 ?? 2-72-year11 13.85 13.65 23 3-year 9.71 11.55 14.44 14.73 14.13 14.18 13.77 14.02 13.95 13.73 13.71 13.71 24 5-year 9.52 11.48 14.24 14.54 13.98 14.00 13.75 13.87 13.87 13.69 13.72 13.74 25 7-year 9.48 11.43 14.06 14.46 13.93 13.94 13.74 13.82 13.83 13.67 13.69 13.78 26 10-year 9.44 11.46 13.91 14.43 13.86 13.87 13.62 13.78 13.73 13.53 13.57 13.66 27 20-year 9.33 11.39 13.72 14.48 13.75 13.57 13.46 13.47 13.46 13.37 13.48 13.53 28 30-year 9.29 11.30 13.44 14.22 13.53 13.37 13.24 13.28 13.27 13.17 13.24 13.29 Composite12 29 Over 10 years (long-term) 8.74 10.81 12.87 13.63 12.98 12.84 12.67 12.73 12.71 12.58 12.66 12.72 State and local notes and bonds Moody's series13 30 Aaa 5.92 7.85 10.43 12.20 11.95 11.66 11.05 11.20 11.20 11.00 11.00 11.00 31 Baa 6.73 9.01 11.76 13.83 13.70 13.29 12.54 12.78 12.75 12.60 12.40 12.40 32 Bond Buyer series14 6.52 8.59 11.33 12.97 12.82 12.59 11.95 11.97 12.04 11.82 11.96 11.99 Corporate bonds Seasoned issues15 33 All industries 10.12 12.75 15.06 16.13 15.68 15.53 15.34 15.40 15.43 15.28 15.32 15.35 34 Aaa 9,63 11.94 14.17 15.27 14.58 14.46 14.26 14.31 14.36 14.22 14.23 14.21 35 Aa 9.94 12.50 14.75 15.72 15.21 14.90 14.77 14.75 14.86 14.70 14.76 14.76 36 A 10.20 12.89 15.29 16,35 16.12 15.95 15.70 15.82 15.76 15.65 15.68 15.71 37 Baa 10.69 13.67 16.04 17.18 16.82 16.78 16.64 16.70 16.72 16.54 16.62 16.69 Aaa utility bonds16 38 10.03 12.74 15.56 15.93 15.26 15.83 15.22 15.22 39 Recently offered issues 10.02 12.70 15.56 15.97 15.19 15.45 15.24 15.55 15.29 15.31 15.17 15.20 MEMO: Dividend/price ratio17 40 Preferred stocks 9.07 10.57 12.36 13.20 12.97 12.90 12.58 12.76 12.72 12.50 12.48 12.60 41 Common stocks 5.46 5.25 5.41 6.06 6.28 5.99 5.97 5.94 5.91 5.83 6.05 6.09 1. Weekly and monthly figures are averages of all calendar days, where the 11. Each weekly figure is calculated on a biweekly basis and is the average of rate for a weekend or holiday is taken to be the rate prevailing on the preceding five business days ending on the Monday following the calendar week. The biweekly business day. The daily rate is the average of the rates on a given day weighted rate is used to determine the maximum interest rate payable in the following twoby the volume 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 Dills 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 DomesticN onfinancial Statistics • June 1982 1.36 STOCK MARKET Selected Statistics 1981 1982 ... 11998800 11998811 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May 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 68.37 69.40 71.49 71.81 67.91 66.16 63.86 66.97 67.07 2 Industrial 61.82 78.64 85.44 78.07 78.94 80.86 81.70 76.85 74.78 71.51 75.59 75.97 3 Transportation 45.20 60.52 72.61 63.67 65.65 67.68 68.27 62.04 59.09 55.19 57.91 56.84 4 Utility 36.46 37.35 38.90 38.17 38.87 40.73 40.22 39.30 38.32 38.57 39.20 39.40 5 Finance 58.65 64.28 73.52 69.38 72.58 76.47 74.74 70.99 70.50 69.08 71.44 69.16 6 Standard & Poor's Corporation (1941-43 = 10)! 107.94 118.71 128.05 118.27 119.84 122.92 123.79 117.41 114.50 110.84 116.31 116.35 7 American Stock Exchange (Aug. 31, 1973 = 100) 186.56 300.94 343.58 313.60 308.81 321.0 322.65 296.49 275.10 255.08 271.15 272.88 Volume of trading (thousands of shares) 8 New York Stock Exchange 32,233 44,867 46,967 46,042 45,287 50,791 43,598 48,419 51,169 55,227 5544,,111199 51,323 9 American Stock Exchange 4,182 6,377 5,346 5,556 4,233 5,257 4,992 4,497 4,400 4,329 3,938 4,337 Customer financing (end-of-period balances, in millions of dollars) 10 Regulated margin credit at brokers-dealers2 11,619 14,721 14,411 14,023 13,926 14,124 14,411 13,441 13,023 12,095 12,202 f 11 Margin stock3 11,450 14,500 14,150 13,760 13,660 13,860 14,150 13,190 12,770 11,840 11,950 1 12 Convertible bonds 167 219 259 263 263 261 259 249 251 249 251 n. a. 13 Subscription issues 2 2 2 0 3 3 2 2 2 6 1 Free credit balances at brokers4 14 Margin-account 1,105 2,105 3,515 2,940 2,990 3,290 3,515 3,455 3,755 3,895 4,150 15 Cash-account 4,060 6,070 7,150 6,555 6,100 6,865 7,150 6,575 6,595 6,510 6,270 Margin-account debt at brokers (percentage distribution, end of period) 16 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 By equity class (in percent)5 17 Under 40 16.0 14.0 37.0 47.0 32.0 30.0 37.0 37.0 44.0 39.0 34.0 18 40-49 29.0 30.0 21.0 22.0 28.0 25.0 24.0 24.0 22.0 24.0 25.0 19 50-59 27.0 25.0 22.0 13.0 18.0 21.0 17.0 16.0 15.0 16.0 18.0 20 60-69 14.0 14.0 10.0 8.0 10.0 11.0 10.0 10.0 8.0 10.0 10.0 I 21 70-79 8.0 9.0 6.0 5.0 6.0 6.0 6.0 7.0 6.0 6.0 7.0 I 77..00 8.0 6.0 5.0 6.0 7.0 6.0 6.0 5.0 55..00 6.0 Special miscellaneous-account balances at brokers (end of period) 23 Total balances (millions of dollars)6 16,150 21,690 25,870 25,234 24,962 25,409 25,870 26,080 26,850 28,030 28,252 Distribution by equity status (percent) 24 Net credit status 44.2 47.8 58.0 55.0 55.0 57.0 58.0 58.0 58.0 59.0 57.0 n a. Debt status, equity of 25 60 percent or more 47.0 44.4 31.0 33.0 35.0 33.0 31.0 31.0 30.0 28.0 29.0 26 Less than 60 percent 8.8 7.7 11.0 12.0 10.0 10.0 11.0 11.0 12.0 13.0 13.0 r 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 1982 Account 1979 1980 July Aug. Sept. Oct. Nov. Dec.' Jan.' Feb.r Mar.r Apr.? Savings and loan associations 1 Assets 578,962 630,712 649,807 653,022 655,658 659,073 660,326 663,844 667,600 671,895 678,039 681,712 2 Mortgages 475,688 503,192 511,990 518,172 518,778 519,248 519,146 518,350 517,493 516,284 515,896 514,683 Cash and investment securities1 46,341 57,928 57,817 58,932 59,530 61,517 61,369 62,756 64,089 66,585 67,758 68,050 4 Other 56,933 69,592 75,000 75,918 77,350 78,308 79,811 82,738 86,018 89,026 94,835 98,979 5 Liabilities and net worth 578,962 630,712 649,807 653,022 655,658 659,073 660,326 663,844 667,600 671,895 678,039 681,712 6 Savings capital 470,004 511,636 514,805 513,438 515,649 519,288 519,777 524,374 526,382 529,064 535,566 532,955 7 Borrowed money 55,232 64,586 79,704 83,456 87,477 86,108 86,255 89,097 89,099 89,465 91,013 93,752 8 FHLBB 40,441 47,045 57,188 60,025 61,857 62,000 61,922 62,794 62,581 62,690 63,639 65,242 9 Other 14,791 17,541 22,516 23,431 25,620 24,108 24,333 26,303 26,518 26,'775 27,374 28,510 10 Loans in process 9,582 8,767 7,741 7,354 7,040 6,757 6,451 6,369 6,249 6,144 6,399 6,563 11 Other 11,506 12,394 16,556 18,275 15,307 17,506 19,101 15,612 18,356 20,145 18,574 22,435 12 Net worth2 32,638 33,329 31,001 30,499 30,185 29,414 28,742 28,392 27,514 27,077 26,487 26,007 13 MEMO: Mortgage loan commitments outstanding3 16,007 16,102 17,235 16,689 16,012 15,733 15,758 15,225 15,131 15,397 15,582 16,326 Mutual savings banks4 14 Assets 163,405 171,564 174,578 174,761 175,234 175,693 175,258 175,728 175,938 175,763 174,776 Loans 15 Mortgage 98,908 99,865 100,095 99,987 99,944 99,903 99,879 99,997 99,788 98,838 97,464 16 Other 9,253 11,733 14,359 14,560 14,868 14,725 15,073 14,753 15,029 15,604 1166,,551144 Securities 17 U.S. government5 7,658 8,949 9,361 9,369 9,594 9,765 9,508 9,810 9,991 9,966 10,072 18 State and local government 2,930 2,390 2,291 2,326 2,323 2,394 2,271 2,288 2,290 2,293 2,276 19 Corporate and other6 37,086 39,282 38,374 38,180 38,118 38,108 37,874 37,791 37,849 37,781 37,379 20 Cash 3,156 4,334 4,629 4,791 4,810 5,118 5,039 5,442 5,210 5,412 5,219 21 Other assets 4,412 5,011 5,469 5,547 5,577 5,681 5,615 5,649 5,781 5,869 5,852 22 Liabilities 163,405 171,564 174,578 174,761 175,234 175,693 175,258 175,728 175,938 175,763 174,776 n a. 23 Deposits 146,006 154,805 153,757 153,120 153,412 154,066 153,809 155,110 154,843 154,626 154,022 24 Regular7 144,070 151,416 151,394 150,753 151,072 151,975 151,787 153,003 152,801 152,616 151,979 25 Ordinary savings 61,123 53,971 50,593 49,003 49,254 48,238 48,456 49,425 48,898 48,297 48,412 26 Time and other 82,947 97,445 100,800 101,750 101,818 103,737 126,889 121,343 120,740 120,282 118,536 27 Other 1,936 2,086 28,494 27,073 25,769 24,806 2,023 2,108 2,042 2,010 2,043 28 Other liabilities 5,873 6,695 10,156 11,125 11,458 11,513 11,434 10,632 11,280 11,464 11,132 29 General reserve accounts 11,525 11,368 10,665 10,516 10,364 10,114 10,015 9,986 9,814 9,672 9,622 30 MEMO: Mortgage loan commitments outstanding8 3,182 1,476 1,401 1,333 1,218 1,140 1,207 1,293 916 950 978 Life insurance companies 31 Assets 432,282 479,210 503,994 506,585 509,478 515,079 519,281 521,354 525,331 526,573 530,014 Securities 32 Government 338 21,378 23,691 23,949 24,280 24,621 25,200 25,310 26,157 26,847 27,322 33 United States9 4,888 5,345 7,359 7,544 7,670 7,846 8,321 8,578 9,204 9,887 10,236 34 State and local 6,428 6,701 6,865 6,904 7,033 7,129 7,148 6,968 7,063 7,043 7,069 35 Foreign10 9,022 9,332 9,467 9,501 9,577 9,646 9,731 9,764 9,890 9,917 10,017 36 Business 222,332 238,113 250,186 250,371 250,315 253,976 255,632 254,978 257,614 257,318 257,452 37 Bonds 178,371 190,747 203,016 204,501 205,908 208,004 209,194 208,587 211,686 212,685 213,217 n a. 38 Stocks 39,757 47,366 41,170 45,870 44,407 45,972 46,438 46,391 45,928 44,633 44,235 39 Mortgages 118,421 131,080 135,928 136,516 136,982 137,736 138,433 139,046 139,596 139,777 140,259 40 Real estate 13,007 15,033 17,429 17,626 17,801 18,382 18,629 19,157 19,276 18,999 19,472 41 Policy loans 34,825 41,411 45,591 46,252 47,042 47,731 48,275 48,741 49,092 49,535 50,083 42 Other assets 27,563 31,702 31,169 31,971 33,058 32,633 33,112 34,122 33,288 34,097 35,426 Credit unions 43 Total assets/liabilities and capital 65,854 71,709 76,043 75,656 76,145 76,123 76,830 77,682 78,012 78,986 81,055 81,351 44 Federal 35,934 39,801 41,678 41,394 41,682 41,727 42,025 42,382 42,512 43,111 44,263 44,371 45 State 29,920 31,908 34,365 34,262 34,463 34,396 34,805 35,300 35,500 35,875 36,792 36,980 46 Loans outstanding 53,125 47,774 50,724 51,207 51,407 51,029 50,631 50,448 49,949 49,610 49,668 49,533 47 Federal 28,698 25,627 27,378 27,701 27,871 27,686 27,508 27,458 27,204 27,051 27,119 27,064 48 State 24,426 22,147 23,346 23,506 23,536 23,343 23,123 22,990 22,745 22,559 22,549 22,469 49 Savings 56,232 64,399 67,690 66,943 67,512 67,625 67,981 68,871 69,432 70,227 72,218 72,569 50 Federal (shares) 35,530 36,348 37,176 36,713 36,928 37,015 37,261 37,574 37,875 38,331 39,431 39,688 51 State (shares and deposits) 25,702 28,051 30,514 30,230 30,584 30,610 30,720 31,297 31,557 31,896 32,787 32,881 For notes see bottom of page A30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • June 1982 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Calendar year Fiscal Fiscal Fiscal Type of account or operation year year year 1980 1981 1982 1979 1980 1981 H2 HI H2 Feb. Mar. Apr. U.S. budget 1 Receipts' 463,302 517,112 599,272 260,569 317,304 301,777 43,042 45,291 75,777 2 Outlays1'2 490,997 576,675 657,204 309,389 333,115 358,558 57,822 63,546 66,073 3 Surplus, or deficit (-) -27,694 -59,563 -57,932 -48,821 -15,811 -56,780 -14,780 -18,255 9,704 4 Trust funds 18,335 8,801 6,817 -2,551 5,797 -8,085 -1,892 966 626 5 Federal funds3 -46,030 -68,364 -64,749 -46,270 -21,608 -48,697 -12,888 -19,221 9,077 OOffff--bbuuddggeett eennttiittiieess ((ssuurrpplluuss,, oorr ddeeffiicciitt ((--)))) 66 FFeeddeerraall FFiinnaanncciinngg BBaannkk oouuttllaayyss -13,261 -14,549 -20,769 -7,552 -11,046 -8,728 -435 -601 -1,153 77 OOtthheerr44 55 793 303 -236 376 -900 -1,752 222 83 160 U.S. budget plus off-budget, including Federal Financing Bank 8 Surplus, or deficit (-) -40,162 -73,808 -78,936 -55,998 -27,757 -67,260 -14,993 -18,773 8,711 Source or financing 9 Borrowing from the public 33,641 70,515 79,329 54,764 33,213 54,081 10,693 12,305 2,527 10 Cash and monetary assets (decrease, or increase (-)) -408 -355 -1,878 -6,730 2,873 -1,111 4,973 7,035 -11,256 11 Other7 6,929 3,648 1,485 7,964 -8,328 14,290 -673 -567 19 MEMO: 12 Treasury operating balance (level, end of period) 24,176 20,990 18,670 12,305 16,389 12,046 20,668 13,001 28,740 13 Federal Reserve Banks 6,489 4,102 3,520 3,062 2,923 4,301 3,835 2,866 12,239 14 Tax and loan accounts 17,687 16,888 15,150 9,243 13,466 7,745 16,833 10,135 16,501 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 onjgold; 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 Fiscal Fiscal Fiscal SSoouurrccee oorr ttyyppee year year year 1980 1981 1982 1979 1980 1981 H2 HI H2 Feb. Mar. Apr. RECEIPTS 1 All sources1 463,302 517,112 599,272 260,569 317,304 301,777 43,042 45,291 75,777 2 Individual income taxes, net 217,841 244,069 285,917 131,962 142,889 147,035 21,007 13,391 41,672 3 Withheld 195,295 223,763 256,332 120,924 126,101 134,199 23,882 23,307 22,699 4 Presidential Election Campaign Fund... 36 39 41 4 36 5 4 11 6 5 Nonwithheld 56,215 63,746 76,844 14,592 59,907 17,391 1,608 4,329 35,282 6 Refunds 33,705 43,479 47,299 3,559 43,155 4,559 4,487 14,255 16,315 Corporation income taxes 7 Gross receipts 71,448 72,380 73,733 28,579 44,048 31,056 3,055 8,435 9,032 8 Refunds 5,771 7,780 12,596 4,518 6,565 738 1,763 1,525 1,690 9 Social insurance taxes and contributions, net 138,939 157,803 182,720 75,679 101,316 91,592 15,109 18,752 21,593 10 Payroll employment taxes and contributions2 115,041 133,042 156,953 66,831 83,851 82,984 12,495 1177,,774400 14,642 11 Self-employment taxes and contributions3 5,034 5,723 6,041 188 6,240 244 539 488 4,470 12 Unemployment insurance 15,387 15,336 16,129 6,742 9,205 6,355 1,734 130 2,120 13 Other net receipts1,4 3,477 3,702 3,598 1,919 2,020 2,009 342 395 362 14 Excise taxes 18,745 24,329 40,839 15,332 21,945 22,097 2,908 3,182 2,732 15 Customs deposits 7,439 7,174 8,083 3,717 3,926 4,661 644 812 704 16 Estate and gift taxes 5,411 6,389 6,787 3,499 3,259 3,742 866 787 582 17 Miscellaneous receipts5 9,252 12,748 13,790 6,318 6,487 8,441 1,215 1,457 1,152 OUTLAYS 18 All types1-6 490,997 576,675 657,204 309,389 333,115 358,558 57,822 63,546 66,073 19 National defense 117,681 135,856 159,765 72,457 80,005 87,421 14,578 16,436 16,385 20 International affairs 6,091 10,733 11,130 5,430 5,999 4,655 555 1,796 1,111 21 General science, space, and technology ... 5,041 5,722 6,359 3,205 3,314 3,388 568 617 532 22 Energy 6,856 6,313 10,277 3,997 5,677 4,394 446 519 511 23 Natural resources and environment 12,091 13,812 13,525 7,722 6,476 7,296 651 1,017 1,148 24 Agriculture 6,238 4,762 5,572 1,892 3,101 5,181 1,163 2,621 949 25 Commerce and housing credit 2,579 7,788 3,946 3,163 2,073 1,825 -259 -235 1,178 26 Transportation 17,459 21,120 23,381 11,547 11,991 10,753 2,166 11,,224411 1,867 27 Community and regional development.... 9,542 10,068 9,394 5,370 4,621 4,269 439 448888 523 28 Education, training, employment, social services 29,685 30,767 31,402 15,221 15,928 13,878 2,198 1,952 2,304 29 Health1 46,962 55,220 65,982 29,680 33,113 35,322 5,841 6,578 6,298 30 Income security6 160,159 193,100 225,099 107,912 113,490 129,269 20,345 22,074 21,912 31 Veterans benefits and services 19,928 21,183 22,988 11,731 10,531 12,880 1,911 2,273 3,239 32 Administration of justice 4,153 4,570 4,698 2,299 2,344 2,290 381 478 419 33 General government 4,093 4,505 4,614 2,432 2,692 2,311 549 692 123 34 General-purpose fiscal assistance 8,372 8,584 6,856 4,191 3,015 3,043 129 13 1,176 35 Interest 52,566 64,504 82,537 35,909 41,178 47,667 7,634 6,664 7,633 36 Undistributed offsetting receipts7 -18,488 -21,933 -30,320 -14,769 -12,432 -17,281 -1,474 -1,679 -1,235 1. The Budget of the U.S. Government, Fiscal Year 1983 has reclassified sup- 5. Deposits of earnings by Federal Reserve Banks and other miscellaneous replemental medical insurance premiums and voluntary hospital insurance premiums, ceipts. previously included in other social insurance receipts, as offsetting receipts in the 6. Effective Oct. 1, 1980, the Pension Benefit Guaranty Corporation was rehealth function. classified from an off-budget agency to an on-budget agency in the Department of 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. Labor. 3. Old-age, disability, and hospital insurance. 7. Consists of interest received by trust funds, rents and royalties on the Outer 4. Federal employee retirement contributions and Civil Service retirement and Continental Shelf, and U.S. government contributions for employee retirement. disability fund. SOURCE. "Monthly Treasury Statement of Receipts and Outlays of the U.S. Government" and the Budget of the U.S. Government, Fiscal Year 1983. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 DomesticN onfinancial Statistics • June 1982 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars 1980 1981 1982 IItteemm Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding 870.4 884.4 914.3 936.7 970.9 977.4 1,003.9 1,034.7 1,066.4 2 Public debt securities 863.5 877.6 907.7 930.2 964.5 971.2 997.9 1,028.7 1,061.3 3 Held by public 677.1 682.7 710.0 737.7 773.7 771.3 789.8 825.5 858.9 4 Held by agencies 186.3 194.9 197.7 192.5 190.9 199.9 208.1 203.2 202.4 5 Agency securities 7.0 6.8 6.6 6.5 6.4 6.2 6.1 6.0 5.1 6 Held by public 5.5 5.3 5.1 5.0 4.9 4.7 4.6 4.6 3.9 7 Held by agencies 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.4 1.2 8 Debt subject to statutory limit 864.5 878.7 908.7 931.2 965.5 972.2 998.8 1,029.7' 1,062.2 9 Public debt securities 862.8 877.0 907.1 929.6 963.9 970.6 997.2 1,028. V 1,062.7 10 Other debt1 1.7 1.7 1.6 1.6 1.6 1.6 1.6 1.6 1.5 11 MEMO: Statutory debt limit 879.0 925.0 925.0 935.1 985.0 985.0 999.8 1,079.8 1,079.8 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 1982 TTyyppee aanndd hhoollddeerr 11997788 11997799 11998800 11998811 Jan. Feb. Mar. Apr. May 1 Total gross public debt 789.2 845.1 930.2 1,028.7 1,038.4 1,048.2 1,061.3 1,065.7 1,071.7 By type 2 Interest-bearing debt 782.4 844.0 928.9 1,027.3 1,032.7 1,042.2 1,059.8 1,064.5 1,066.4 3 Marketable 487.5 530.7 623.2 720.3 726.5 737.5 752.6 755.8 755.7 4 Bills 161.7 172.6 216.1 245.0 250.6 254.0 256.2 254.9 256.1 5 Notes 265.8 283.4 321.6 375.3 374.4 382.1 395.0 399.7 398.4 6 Bonds 60.0 74.7 85.4 99.9 101.6 101.4 101.4 101.3 101.2 7 Nonmarketable1 294.8 313.2 305.7 307.0 306.1 304.7 307.2 308.7 310.7 8 Convertible bonds2 2.2 2.2 9 State and local government series 24.3 24.6 23.8 23.0 22.7 22.7 23.2 23.2 23.4 10 Foreign issues3 29.6 28.8 24.0 19.0 18.9 18.4 19.6 19.4 18.4 11 Government 28.0 23.6 17.6 14.9 14.8 14.3 15.6 15.4 14.8 12 Public 1.6 5.3 6.4 4.1 4.1 4.1 4.1 4 1 3 6 13 Savings bonds and notes 80.9 79.9 72.5 68.1 67.8 67.6 67.4 67.3 67.3 14 Government account series4 157.5 177.5 185.1 196.7 196.4 195.7 196.7 198.5 201.3 15 Non-interest-bearing debt 6.8 1.2 1.3 1.4 5.7 6.0 1.5 1.1 5.3 By holder5 16 U.S. government agencies and trust funds 170.0 187.1 192.5 203.3 202.8 201.1 17 Federal Reserve Banks 109.6 117.5 121.3 131.0 127.7 125.4 18 Private investors 508.6 540.5 616.4 694.5 707.3 720.8 19 Commercial banks 93.2 96.4 116.0 109.4 111.4 111.8 20 Mutual savings banks 5.0 4.7 5.4 5.2 5.4 5.4 21 Insurance companies 15.7 16.7 20.1 19.1 19.5 18.7 n a. n a. n a. 22 Other companies 19.6 22.9 25.7 37.8 37.9 37.5 23 State and local governments 64.4 69.9 78.8 85.6 86.2 86.2 Individuals 24 Savings bonds 80.7 79.9 72.5 68.0 67.9 67.7 25 Other securities 30.3 36.2 56.7 75.6 76.2 77.0 26 Foreign and international6 137.8 124.4 127.7 141.4 142.1 140.0 27 Other miscellaneous investors7 58.9 90.1 106.9 152.3 160.7 174.5 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 1982 1982 T R 1,1.. 11998811 Feb. Mar. Feb Mar. All maturities 1 to 5 years 1 All holders 623,186 720,293 737,532 752,620 197,409 228,550 234,503 242,354 2 U.S. government agencies and trust funds 9,564 8,669 8,042 8,001 1,990 1,906 1,906 1,906 3 Federal Reserve Banks 121,328 130,954 124,819 125,589 835 38,223 35,425 37,193 4 Private investors 492,294 580,671 604,671 619,030 159,585 188,422 197,172 203,254 5 Commercial banks 77,868 74,618 77,688 79,398 44,482 39,021 40,449 41,420 6 Mutual savings banks 3,917 3,971 4,206 4,533 1,925 1,870 1,961 2,253 7 Insurance companies 11,930 12,090 12,409 13,088 4,504 5,596 5,766 5,945 8 Nonfinancial corporations 7,758 4,214 4,305 4,318 2,203 1,146 1,024 1,073 9 Savings and loan associations 4,225 4,122 4,767 4,849 2,289 2,260 2,508 2,460 10 State and local governments 21,058 18,991 21,581 21,740 4,595 4,278 4,766 4,707 11 All others 365,539 462,663 479,714 491,104 99,577 134,251 140,699 145,396 Total, within 1 year 5 to 10 years 12 All holders 297,385 340,082 353,309 357,073 56,037 63,483 57,279 60,785 13 U.S. government agencies and trust funds 830 647 20 20 1,404 779 779 779 14 Federal Reserve Banks 56,858 64,113 62,593 61,579 13,548 11,854 10,093 10,102 15 Private investors 239,697 275,322 290,695 295,473 41,175 50,851 46,407 49,904 16 Commercial banks 25,197 29,480 31,448 31,579 5,793 4,496 2,858 3,120 17 Mutual savings banks 1,246 1,569 1,748 1,774 455 238 185 196 18 Insurance companies 1,940 2,201 2,213 2,350 3,037 2,507 2,329 2,578 19 Nonfinancial corporations 4,281 2,421 2,604 2,329 357 344 268 292 20 Savings and loan associations 1,646 1,731 2,032 2,140 216 98 158 163 21 State and local governments 7,750 7,536 7,770 6,974 2,030 2,365 2,299 2,419 22 All others 197,636 230,383 242,880 248,328 29,287 40,804 38,310 41,136 Bills, within 1 year 10 to 20 years 23 All holders 216,104 245,015 254,037 256,212 36,854 44,744 46,432 46,399 24 U.S. government agencies and trust funds 1 * 2 2 3,686 3,996 3,996 3,952 25 Federal Reserve Banks 43,971 49,679 46,961 45,692 5,919 6,692 6,617 6,624 26 Private investors 172,132 195,335 207,074 210,518 27,250 34,055 35,819 35,822 27 Commercial banks 9,856 9,667 11,504 11,575 1,071 873 1,083 1,328 28 Mutual savings banks 394 423 582 559 181 151 171 170 29 Insurance companies 672 760 681 784 1,718 1,119 1,325 1,361 30 Nonfinancial corporations 2,363 1,173 1,731 1,544 431 131 200 267 31 Savings and loan associations 818 363 737 822 52 16 26 21 32 State and local governments 5,413 5,126 5,236 4,327 3,597 2,824 4,238 4,872 33 All others 152,616 177,824 186,603 190,905 20,200 28,940 28,776 27,804 Other, within 1 year Over 20 years 34 All holders 81,281 95,068 99,272 100,861 35,500 43,434 46,010 46,010 35 U.S. government agencies and trust funds 829 647 19 18 1,656 1,340 1,340 1,343 36 Federal Reserve Banks 12,888 14,433 15,632 15,887 9,258 10,073 10,092 10,002 37 Private investors 67,565 79,987 83,622 84,956 24,587 32,020 34,578 34,576 38 Commercial banks 15,341 19,814 19,945 20,003 1,325 749 1,850 1,952 39 Mutual savings banks 852 1,146 1,167 1,215 110 144 141 140 40 Insurance companies 1,268 1,442 1,532 1,565 730 666 776 853 41 Nonfinancial corporations 1,918 1,248 873 785 476 172 209 358 42 Savings and loan associations 828 1,368 1,295 1,318 21 17 43 65 43 State and local governments 2,337 2,410 2,534 2,647 3,086 1,988 2,508 2,767 44 All others 45,020 52,560 56,277 57,423 18,838 28,285 29,049 28,440 NOTE. Direct public issues only. Based on Treasury Survey of Ownership from and 725 insurance companies, each about 80 percent; (2) 408 nonfinancial cor- Treasury Bulletin (U.S. Treasury Department). porations and 467 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 Mar. 31,1982: (1)5,297 commercialbanks, 444 mutual savings banks, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 DomesticN onfinancial Statistics • June 1982 1.43 U.S. GOVERNMENT SECURITIES DEALERS Transactions Par value; averages of daily figures, in millions of dollars 1982 1982, week ending Wednesday IItteemm 11997799 11998800 11998811 Feb. Mar.r Apr Apr. 21 Apr. 28 May 5 May 12 May 19 Immediate delivery1 1 U.S. government securities 13,183 18,331 24,728 30.524 27.384 28,424 33,233 27,747 25,319 32,778 31,248 By maturity 2 Bills 7,915 11,413 14,768 17,557 14,995 16.090 20,210 14,489 13,334 16,464 17,698 3 Other within 1 year 454 421 621 665 742 910 1,069 893 802 600 619 4 1-5 years 2,417 3,330 4,360 6,070 5.606 5,288 5,312 6,930 6,215 7,045 6,308 5 5-10 years 1,121 1,464 2,451 2,968 2.843 3,136 2,941 2,492 2,182 3,964 2,986 6 Over 10 years 1,276 1,704 2,528 3,264 3.199 2,999 3,702 2,942 2,786 4,704 3,636 By type of customer 7 U.S. government securities dealers 1,448 1,484 1,640 1,556 1,386 1,718 1,951 2,080 1,221 1,779 11,,992277 8 U.S. government securities brokers 5,170 7,610 11,750 15,239 13,701 13,669 15,995 13,460 11,406 16,949 15,547 9 All others2 6,564 9,237 11,337 13,729 12,296 13,037 15,288 12.207 12,692 14,049 13,773 10 Federal agency securities 2,723 3,258 3,306 3,617 3.315 3,620 3,839 3,999 2,911 4,101 3,891 11 Certificates of deposit 1,764 2,472 4,477 4,961 4.355 4,495 4,835 4,846 4,076 5,181 4,890 12 Bankers acceptances i 1,807 2,208 2,115 2,434 2,539 2,344 2.009 2,391 2,204 13 Commercial paper t 6,128 7.791 7.217 7,537 7,708 7,291 8,373 7,685 7,859 Futures transactions3 14 Treasury bills 3,523 4,682 5,095 4,447 5,493 4,001 4,028 5,299 6,219 15 Treasury coupons 1 1,330 1.545 1,179 959 1,287 953 995 2,170 1,691 16 Federal agency securities n.a. n a. 234 261 204 216 315 170 177 250 258 Forward transactions4 1 17 U.S. government securities 365 876 493 371 340 703 564 1,039 375 18 Federal agency securities \ 1,370 1,409 1,358 951 1,163 354 804 588 462 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, NOTE. 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 1982 1982, week ending Wednesday IItteemm 11997799 11998800 11998811 Feb. Mar. Apr. Mar. 31 Apr. 7 Apr. 14 Apr. 21 Apr. 28 Positions Net immediate1 1 U.S. government securities 3,223 4,306 9,033 9,879 12,247 12,564 12.668 14,710 12,737 12,480 11,185 7 Bills 3,813 4,103 6,485 4,557 6,594 7,718 7,406 9,318 8,061 8,202 6,008 3 Other within 1 year -325 -1,062 -1,526 83 -118 -99 -256 14 67 -77 -234 4 1-5 years -455 434 1.488 3,287 3,333 2,902 3,640 2,827 2,728 2,542 3,398 5 5-10 years 160 166 292 -580 -513 -520 -906 35 -419 -776 -822 6 Over 10 years 30 665 2,294 2,532 2,952 2,563 2,784 2,517 2,301 2,588 2,835 7 Federal agency securities 1,471 797 2,277 2,311 2,505 2,916 2,587 2,797 3,353 2,838 2,796 8 Certificates of deposit 2,794 3,115 3,435 3,389 3,884 4,467 3,817 4,310 4,645 4,546 4,445 9 Bankers acceptances 1,746 1,953 2.276 2.530 2,736 2,907 2,783 2,403 2,212 10 Commercial paper 2,658 2,560 3,151 3,229 3,291 3,323 3,329 3,243 3,101 Future positions 11 Treasury bills -8,934 -7,588 -6,652 -5,463 -4,737 -1,658 -2,873 -6,481 9,062 12 Treasury coupons n a. n a. -2,733 -2,593 -2,528 -2.896 -2.195 -2,008 -2,375 -3,098 -3,693 13 Federal agency securities 522 493 -161 -403 -227 -66 -282 -544 -603 Forwards positions 14 U.S. government securities -603 -719 -518 -590 -404 -707 -574 -569 -541 15 Federal agency securities -451 -1,207 -1,007 -1,064 -904 -1,074 -1,215 -1,080 -943 Financing2 Reverse repurchase agreements II 16 Overnight and continuing ... 14,568 21.854 24,745 26,924 27,512 26.453 25,045 26,003 30,196 17 Term agreements 32,048 45,520 42,608 46,509 39,137 43,803 41,158 49,365 51,710 Repurchase agreements4 18 Overnight and continuing ... 35,919 43,005 48,139 53,246 51,909 51,089 49,996 51,437 60,463 19 Term agreements nn11..aa.. 29,449 38,313 38,833 43,140 37,628 41,795 41,712 45,983 43,069 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 1982 AAggeennccyy 11997788 11997799 11998800 Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 Federal and federally sponsored agencies' 137,063 163,290 193,229 223,393 226,010 226,269 227,210 226,418 226,539 228,749 2 Federal agencies 23,488 24,715 28,606 30,870 31,069 31,156 31,806 31,053 30,806 31,408 3 Defense Department2 968 738 610 516 514 490 484 470 460 454 4 Export-Import Bank3-4 8,711 9,191 11,250 12,855 12,845 12,829 13,339 13,135 12,861 13,421 5 Federal Housing Administration5 588 537 477 432 427 419 413 406 397 382 6 Government National Mortgage Association participation certificates6 3,141 2,979 2.817 2,715 2,715 2,715 2,715 2,191 2,165 2,165 7 Postal Service7 2,364 1,837 1,770 1,538 1,538 1,538 1,538 1,538 1,538 1,538 8 Tennessee Valley Authority 7,460 8,997 11,190 12,599 12,830 12,965 13,115 13,115 13,187 13,250 9 United States Railway Association7 356 436 492 215 200 200 202 198 198 198 10 Federally sponsored agencies1 113,575 138,575 164,623 192,523 194,941 195,113 195,404 195,365 195,733 197,341 11 Federal Home Loan Banks 27,563 33,330 41,258 58,276 57,990 57,854 58,090 57,387 57,743 58,839 12 Federal Home Loan Mortgage Corporation 2,262 2,771 2,536 2,308 2,308 2,608 2,604 2,604 2,604 2,500 13 Federal National Mortgage Association 41,080 48,486 55,185 56,688 57,805 58,533 58,749 58,860 59,018 59,270 14 Federal Land Banks 20,360 16,006 12,365 10,317 9,717 9,717 9,717 8,717 8,717 8,717 15 Federal Intermediate Credit Banks 11,469 2,676 1,821 1,388 1,388 1,388 1,388 1,388 1,388 1,388 16 Banks for Cooperatives 4,843 584 584 220 220 220 220 220 220 220 17 Farm Credit Banks1 5,081 33,216 48,153 59,024 60,911 60,191 60,034 61,187 61,041 61,405 18 Student Loan Marketing Association8 915 1,505 2,720 4,300 4,600 4,600 4,600 5,000 5,000 5,000 19 Other 2 1 1 2 2 2 2 2 2 2 MEMO; 20 Federal Financing Bank debt'-9 51,298 67,383 87,460 107,309 108,171 109,495 110,698 111,965 112,367 113,567 Lending to federal and federally sponsored agencies 21 Export-Import Bank4 6,898 8,353 10,654 12,409 12,409 12,409 12,741 12,741 12,741 13,305 22 Postal Service7 2,114 1,587 1,520 1,288 1.288 1,288 1,288 1,288 1,288 1,288 23 Student Loan Marketing Association8 915 1,505 2,720 4,300 4,600 4,600 4,600 5,000 5,000 5,000 24 Tennessee Valley Authority 5,635 7,272 9,465 10,874 11,105 11,240 11,390 11,435 11,462 11,525 25 United States Railway Association7 356 436 492 215 200 200 202 198 198 198 Other Lending10 26 Farmers Home Administration 23,825 32,050 39,431 48,821 48,571 49,029 48,821 49,026 49,081 48,681 27 Rural Electrification Administration 4,604 6,484 9,196 12,343 12,674 12,924 13,516 13,836 13,989 14,452 28 Other 6,951 9,696 13,982 17,059 17,324 17,805 18,140 18,441 18,608 19,118 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 DomesticN onfinancial Statistics • June 1982 1.46 NEW SECURITY ISSUES of State and Local Governments Millions of dollars TTyyppee ooff iissssuuee oorr iissssuueerr,, 1981 1982 oorr uussee 11997799 11998800 11998811 Aug. Sept. Oct. Nov. Dec. Jan.' Feb.r Mar. 1 All issues, new and refunding1 43,365 48,367 47,732 3,113 3,910 4,097 5,355 4,744 3,853 3,679 5,549 Type of issue 2 General obligation 12,109 14,100 12,394 1,000 560 748 1,315 749 1,036 1,051 1,733 3 U.S. government loans2 53 38 34 8 2 2 3 1 2 0 9 4 Revenue 31,256 34,267 35,338 2,113 3,350 3,349 4,040 3,995 2,817 2,628 3,816 5 U.S. government loans2 67 57 55 4 9 5 2 3 4 6 5 Type of issuer 6 State 4,314 5,304 5,288 446 92 439 518 315 514 234 430 7 Special district and statutory authority .. 23,434 26,972 27,499 1,701 2,749 2,467 3,439 3,308 2,123 2,150 2,915 8 Municipalities, counties, townships, 15,617 16,090 14,945 966 1,070 1,191 1,398 1,120 1,216 1,295 2,204 school districts 9 Issues for new capital, total 41,505 46,736 46,530 2,460 3,904 4,009 5,318 4,683 3,696 3,638 4,666 Use of proceeds 10 Education 5,130 4,572 4,547 257 153 203 576 561 236 261 394 11 Transportation 2,441 2,621 3,447 113 222 499 286 355 138 206 360 12 Utilities and conservation 8,594 8,149 10,037 524 1,626 700 757 955 1,178 1,272 697 13 Social welfare 15,968 19,958 12,729 770 515 953 1,873 1,813 892 823 1,755 14 Industrial aid 3,836 3,974 7,651 316 874 1,015 676 523 447 477 609 15 Other purposes 5,536 7,462 8,119 480 514 639 1,150 476 805 599 851 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 TTyyppee ooff iissssuuee oorr iissssuueerr,, 1981 1982 oorr uussee 11997799 11998800 11998811 Aug. Sept. Oct. Nov. Dec. Jan.r Feb/ Mar. 1 All issues1 51,533 73,694 69,283 3,097 4,696 4,368 8,518 5,908 2,954 3,294 6,436 2 Bonds 40,208 53,206 44,643 1,616 2,797 2,845 6,724 3,893 1,278 1,879 4,512 Type of offering 3 Public 25,814 41,587 37,653 905 2,198 2,582 6,560 3,576 614 1,464 3,540 4 Private placement 14,394 11,619 6,989 711 599 263 164 317 664 415 972 Industry group 5 Manufacturing 9.678 15,409 12,325 308 452 21 2,054 954 283 262 708 6 Commercial and miscellaneous 3,948 6,693 5,229 390 201 617 949 850 230 59 691 7 Transportation 3,119 3,329 2,054 95 63 51 130 82 43 3 224 8 Public utility 8,153 9,557 8,963 360 1,012 1,008 802 582 493 345 1,568 9 Communication 4,219 6,683 4,280 115 471 83 326 106 8 364 84 10 Real estate and financial 11,094 11,534 11,793 348 598 1,065 2,463 1,319 221 845 1,236 11 Stocks 11,325 20,489 24,642 1,481 1,899 1,523 1,794 2,015 1,676 1,415 1,924 Type 12 Preferred 3,574 3,631 1,796 14 186 141 59 80 199 185 199 13 Common 7,751 16,858 22,846 1,467 1,713 1,382 1,735 1,935 1,477 1,230 1,725 Industry group 14 Manufacturing 1.679 4,839 4,838 160 117 193 407 258 129 67 394 15 Commercial and miscellaneous 2,623 5,245 7,436 661 487 449 564 456 723 426 653 16 Transportation 255 549 735 91 87 23 15 23 25 73 27 17 Public utility 5,171 6,230 5,486 248 514 438 405 604 449 743 547 18 Communication 303 567 1,778 12 369 7 85 95 58 2 3 19 Real estate and financial 1,293 3,059 4,371 310 325 412 318 580 292 104 301 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 1982 IItteemm 11998800 11998811 Sept. Oct. Nov. Dec. Jan. Feb. Mar.r Apr. INVESTMENT COMPANIES1 1 Sales of own shares2 15,266 20,596 1,768 1,729 2,140 3,032 2,049 2,049 3,325 2,753 2 Redemptions of own shares3 12,012 15,866 1,457 593 1,125 1,769 1,475 1,456 2,056 2,305 3 Net sales 3,254 4,730 -8 1,175 604 371 1,557 593 1,269 448 4 Assets4 58,400 55,207 51,659 54,335 57,408 55,207 54,347 52,695 53,001 55,981 5 Cash position5 5,321 5,277 5,409 5,799 6,269 5,277 5,424 5,540 5,752 6,079 6 Other 53,079 49,930 46,250 48,536 51,139 49,930 48,923 47,155 47,249 49,912 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 11997799 11998800 11998811 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 Corporate profits with inventory valuation and capital consumption adjustment 196.8 182.7 191.7 169.3 177.9 183.3 203.0 190.3 195.7 177.6 2 Profits before tax 255.3 245.5 233.3 217.9 237.6 249.5 257.0 229.0 234.4 212.8 3 Profits tax liability 87.6 82.3 77.7 71.5 78.5 85.2 87.7 76.4 78.1 68.8 4 Profits after tax 167.7 163.2 155.5 146.4 159.1 164.3 169.3 152.7 156.3 144.0 5 Dividends 50.1 56.0 63.1 55.7 56.7 57.7 59.6 62.0 64.8 66.0 6 Undistributed profits 117.6 107.2 92.4 90.7 102.4 106.6 109.6 90.6 91.5 78.0 7 Inventory valuation -42.6 -45.7 -27.7 -31.1 -41.7 -48.4 -39.2 -24.0 -25.3 -22.3 8 Capital consumption adjustment -15.9 -17.2 -13.9 -17.6 -17.9 -17.8 -14.7 -14.7 -13.4 -12.8 SOURCE. Survey of Current Business (U.S. Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 DomesticN onfinancial Statistics • June 1982 1.50 NONFINANCIAL CORPORATIONS Current Assets and Liabilities Billions of dollars, except for ratio 1980 1981 AAccccoouunntt 11997755 11997766 11997777 11997788 11997799 Q4 Q1 Q2 Q3 Q4 1 Current assets 759.0 826.8 902.1 1,030.0 1,200.9 1,281.6 1,321.2 1,317.4 1,349.2 1,361.4 2 Cash 82.1 88.2 95.8 104.5 116.1 121.0 120.5 118.5 118.3 124.5 3 U.S. government securities 19.0 23.4 17.6 16.3 15.6 17.3 17.0 17.7 16.0 15.8 4 Notes and accounts receivable 272.1 292.8 324.7 383.8 456.8 491.2 507.3 507.4 519.7 512.3 5 Inventories 315.9 342.4 374.8 426.9 501.7 525.4 542.8 540.0 557.2 6 Other 69.9 80.1 89.2 98.5 110.8 126.7 133.6 133.7 138.1 7 Current liabilities 451.6 494.7 549.4 665.5 809.1 877.2 910.9 908.1 951.1 962.3 8 Notes and accounts payable 264.2,/ 281.9 313.2 373.7 456.3 498.3 504.0 500.8 529.1 541.3 9 Other 187.4 212.8 236.2 291.7 352.8 378.9 406.9 407.2 422.0 421.0 10 Net working capital 307.4 332.2 352.7 364.6 391.8 404.4 410.3 409.3 398.1 399.1 11 MEMO: Current ratio 1 1.681 1.672 1.642 1.548 1.484 1.461 1.450 1.451 1.419 1,415 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. 1981 1982 IInndduussttrryy 11998800 11998811 11998822 Q21 Q3 Q4 Q1 Q21 Q31 Q41 1 Total nonfarm business 295.63 321.49 328.60 316.73 328.25 327.83 327.72 323.75 328.04 334.78 Manufacturing 2 Durable goods industries 58.91 61.84 61.17 63.10 62.58 60.78 60.84 60.67 61.44 61.82 3 Nondurable goods industries 56.90 64.95 66.12 62.40 67.53 66.14 67.48 65.02 67.11 65.19 Nonmanufacturing 4 Mining 13.51 16.86 17.24 16.80 17.55 16.81 17.60 16.33 16.71 18.29 Transportation 5 Railroad 4.25 4.24 4.66 4.38 4.18 4.18 4.56 4.61 4.92 4.55 6 Air 4.01 3.81 3.84 3.29 3.34 4.82 3.20 3.39 4.12 4.66 7 Other 3.82 4.00 4.07 4.04 4.09 4.12 4.23 4.00 3.93 4.13 Public utilities 8 Electric 28.12 29.74 31.30 29.32 30.54 31.14 30.95 31.90 30.65 31.67 9 Gas and other 7.32 8.65 8.25 8.53 9.01 8.60 9.17 8.13 7.60 8.38 10 Trade and services 81.79 86.33 88.79 85.88 87.55 88.33 87.80 87.62 88.07 91.16 11 Communication and other2 36.99 41.06 43.15 39.02 41.89 42.92 41.89 42.08 43.48 44.94 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 1981 1982 AAccccoouunntt 11997766 11997777 11997788 11997799 11998800 Q1 Q2 Q3 Q4R Q1 ASSETS Accounts receivable, gross 1 Consumer 38.6 44.0 52.6 65.7 73.6 76.1 79.0 84.5 85.5 85.1 2 Business 44.7 55.2 63.3 70.3 72.3 72.7 78.2 76.9 80.6 80.9 3 Total 83.4 99.2 116.0 136.0 145.9 148.7 157.2 161.3 166.1 166.0 4 LESS: Reserves for unearned income and losses .... 10.5 12.7 15.6 20.0 23.3 24.3 25.7 27.7 28.9 29.1 5 Accounts receivable, net 72.9 86.5 100.4 116.0 122.6 124.5 131.4 133.6 137.2 136.9 6 Cash and bank deposits 2.6 2.6 3.5 7 Securities 1.1 .9 1.3 2244..9911 27.5 30.8 31.6 34.5 34.2 35.0 8 All other 12.6 14.3 17.3 9 Total assets 89.2 104.3 122.4 140.9 150.1 155.3 163.0 168.1 171.4 171.9 LIABILITIES 10 Bank loans 6.3 5.9 6.5 8.5 13.2 13.1 14.4 14.7 15.4 15.4 11 Commercial paper 23.7 29.6 34.5 43.3 43.4 44.2 49.0 51.2 51.2 46.2 Debt 12 Short-term, n.e.c 5.4 6.2 8.1 8.2 7.5 8.2 8.5 11.9 9.6 9.0 13 Long-term, n.e.c 32.3 36.0 43.6 46.7 52.4 51.6 52.6 50.7 54.8 59.0 14 Other 8.1 11.5 12.6 14.2 14.3 17.3 17.0 17.1 17.8 19.0 15 Capital, surplus, and undivided profits 13.4 15.1 17.2 19.9 19.4 20.9 21.5 22.4 22.8 23.3 16 Total liabilities and capital 89.2 104.3 122.4 140.9 150.1 155.3 163.0 168.1 171.4 171.9 1. Beginning Q1 1979, asset items on lines 6, 7, and 8 are combined. NOTE. Components may not add to totals due to rounding. 1.53 DOMESTIC FINANCE COMPANIES Business Credit Millions of dollars, seasonally adjusted except as noted Changes in accounts Extensions Repayments AAAccccccooouuunnntttsss receivable rrreeeccceeeiiivvvaaabbbllleee TTTyyypppeee ooouuu MMM tttsss aaa ttt rrr aaa ... nnn 333 ddd 111 iiinnn ,,, ggg 1982 1982 1982 111999888222111 Jan. Feb. Mar. Jan. Feb. Mar. Jan. Feb. Mar. 1 Total 80,890 119 652 -418 17,496 19,436 18,148 17,377 18,784 18,566 2 Retail automotive (commercial vehicles) 11,509 14 168 34 873 1,076 962 859 908 928 3 Wholesale automotive 12,661 -70 -351 -634 4,565 5,420 3,916 4,635 5,771 4,550 4 Retail paper on business, industrial, and farm equipment.... 27,651 -60 804 384 1,566 1,919 1,538 1,626 1,115 1,154 5 Loans on commercial accounts receivable and factored commercial accounts receivable 8,985 258 -52 140 8,565 8,939 9,774 8,307 8,991 9,634 6 All other business credit 20,084 -23 83 -342 1,927 2,082 1,958 1,950 1,999 2,300 1. Not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • June 1982 1.54 MORTGAGE MARKETS Millions of dollars; exceptions noted. 1981 1982 Item 11997799 11998800 11998811 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 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 89.2 84.5 88.7 102.6 97.3 90.0' 95.1 2 Amount of loan (thousands of dollars) 53.3 59.2 65.3 63.5 62.7 64.4 71.3 71.1 65.4' 70.6 3 Loan/price ratio (percent) 73.9 73.2 74.8 73.0 77.3 75.3 73.5 76.5 75.7' 77.7 4 Maturity (years) 28.5 28.2 27.7 27.4 23.4 27.7 27.4 28.1 27.4' 28.8 5 Fees and charges (percent of loan amount)2 1.66 2.09 2.67 2.86 2.52 2.87 2.55 3.01 2.90' 3.26 6 Contract rate (percent per annum) 10.48 12.25 14.16 15.04 15.68 15.23 14.66 14.44 14.93' 15.08 Yield (percent per annum) 7 FHLBB series3 10.77 12.65 14.74 15.65 16.38 15.87 15.25 15.12 15.67' 15.78 8 HUD series4 11.15 13.95 16.52 18.05 16.95 17.00 17.30 17.20 16.80 16.65 SECONDARY MARKETS Yield (percent per annum) 9 FHA mortgages (HUD series)5 10.87 13.42 16.29 17.43 15.98 16.43 17.38 17.10 16.41 16.31 10 GNMA securities6 10.22 12.55 15.29 16.54 15.10 15.51 16.19 16.21 15.54 15.40 FNMA auctions7 11 Government-underwritten loans 11.17 14.11 16.70 18.13 16.64 16.92 17.80 18.00 17.29 0.0 12 Conventional loans 11.77 14.43 16.64 18.61 17.20 16.95 17.33 17.91 17.09 16.66 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 13 Total 48,050' 55,104 58,675 60,489 60,949 61,412 61,721 62,112 62,544 63,132 14 FHA/VA-insured 33,673 37,364 39,342 40,043 40,056 39,997 39,937 39,926 39,893 39,834 15 Conventional 14,377 17,724 19,334 20,445 20,885 21,435 21,784 22,185 22,654 23,298 Mortgage transactions (during period) 16 Purchases 10,812 8,099 6,112 1,000 594 655 430 519 604 755 17 Sales 0 0 2 0 0 0 0 0 0 0 Mortgage commitments8 18 Contracted (during period) 10,179 8,083 9,331 533 560 1,272 813 1,174 1,903' 2,482 19 Outstanding (end of period) 6,409 3,278 3,717r 3,447 3,354 3,717' 3,536 3,857 4,990' 6,586 Auction of 4-month commitments to buy Government-underwritten loans 20 Offered 8,860.4 8,605.4 2,487.2 66.3 79.0 59.2 41.5 41.7 45.7 7.0 21 Accepted 3,920.9 4,002.0 1,478.0 37.3 34.4 27.0 30.8 23.4 29.6 0.0 Conventional loans 22 Offered 4,495.3 3,639.2 2,524.7 43.2 147.7 84.4 31.7 28.6 65.0 29.5 23 Accepted 2,343.6 1,748.5 1,392.3 27.5 63.1 48.0 11.5 13.6 32.3 22.0 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)9 24 Total 3,543 4,362 5,245 5,469 5,283 5,255 5,240 5,342 5,320 5,274 25 FHA/VA 1,995 2,116 2,236 2,267 2,232 2,227 2,209 2,218 2,227 2,226 26 Conventional 1,549 2,246 3,010 3,202 3,051 3,028 3,032 3,124 3,094 3,048 Mortgage transactions (during period) 27 Purchases 5,717 3,723 3,789 290 416 1,140 1,628 1,228 1,479 2,143 28 Sales 4,544 2,527 3,531 244 596 1,158 1,629' 1,115 1,564 2,177 Mortgage commitments10 29 Contracted (during period) 5,542 3,859 6,974 1,834 2,011 203 328 565 2,523 2,824 30 Outstanding (end of period) 797 447 3,518 2,863 4,451 3,518 5,033 4,336 5,461 6,041 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) 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 1981 1982 TTyyppee ooff hhoollddeerr,, aanndd ttyyppee ooff pprrooppeerrttyy 11997799 11998800 11998811 Q1 Q2 Q3 Q4 Ql' 1 All holders 1,326,785 1,445,966 1,544,784r 1,468,053 1,499,066 1,525,599' 1,544,784' 1,559,620 2 1- to 4-family 880,369 961,340 1,021,140' 974,411 993,793' 1,010,838' 1,021,140' 1,029,059 3 Multifamily 128,167 136,953 141,271' 137,946 139,199 140,010' 141,271' 142,686 4 Commercial 235,572 255,655 280,566' 261,242 268,562' 274,719' 280,566' 284,099 5 Farm 82,677 92,018 101,807 94,454 97,512 100,032 101,807 103,776 6 Major financial institutions 938,567 997,168 1,044,037 1,007,240 1,023,793 1,036,880 1,044,037 1,045,187 7 Commercial banks1 245,187 263,030 286,626 266,734 273,225 281,126 286,626 291,426 8 1- to 4-family 149,460 160,326 172,549 161,758 164,873 169,378 172,549 175,326 9 Multifamily 11,180 12,924 14,905 13,282 13,800 14,478 14,905 15,126 10 Commercial 75,957 81,081 90,717 83,133 86,091 88,836 90,717 92,499 11 Farm 8,590 8,699 8,455 8,561 8,461 8,434 8,455 8,475 12 Mutual savings banks 98,908 99,865 100,015 99,719 99,993 99,994 100,015 98,500 13 1- to 4-family 66,140 67,489 68,200 67,619 68,035 68,116 68,200 67,086 14 Multifamily 16,557 16,058 15,962 15,955 15,909 15,939 15,962 15,611 15 Commercial 16,162 16,278 15,813 16,105 15,999 15,909 15,813 15,763 16 Farm 49 40 40 40 50 30 40 40 17 Savings and loan associations 475,688 503,192 518,350 507,556 515,256 518,778 518,350 515,125 18 1- to 4-family 394,345 419,763 432,978' 423,606 430,702' 433,750' 432,978' 430,084 19 Multifamily 37,579 38,142 37,684' 38,219 38,077 37,975' 37,684' 37,450 20 Commercial 43,764 45,287 47,688' 45,731 46,477' 47,053' 47,688' 47,591 21 Life insurance companies 118,784 131,081 139,046 133,231 135,319 136,982 139,046 140,136 22 1- to 4-family 16,193 17,943 17,382 17,847 17,646 17,512 17,382 17,332 23 Multifamily 19,274 19,514 19,486 19,579 19,603 19,592 19,486 19,674 24 Commercial 71,137 80,666 89,089 82,839 85,038 86,742 89,089 90,105 25 Farm 12,180 12,958 13,089 12,966 13,032 13,136 13,089 13,025 26 Federal and related agencies 97,084 114,300 126,112 116,243 119,124 121,772 126,112 128,725 27 Government National Mortgage Association 3,852 4,642 4,765 4,826 4,972 4,382 4,765 4,438 28 1- to 4-family 763 704 693 696 698 696 693 689 29 Multifamily 3,089 3,938 4,072 4,130 4,274 3,686 4,072 3,749 30 Farmers Home Administration 1,274 3,492 2,235 2,837 2,662 1,562 2,235 2,469 31 1- to 4-family 417 916 914 1,321 1,151 500 914 715 32 Multifamily 71 610 473 528 464 242 473 615 33 Commercial 174 411 506 479 357 325 506 499 34 Farm 612 1,555 342 509 690 495 342 640 35 Federal Housing and Veterans Administration 5,555 5,640 5,999 5,799 5,895 6,005 5,999 6,007 36 1- to 4-family 1,955 2,051 2,289 2,135 2,172 2,240 2,289 2,267 37 Multifamily 3,600 3,589 3,710 3,664 3,723 3,765 3,710 3,740 38 Federal National Mortgage Association 51,091 57,327 61,412 57,362 57,657 59,682 61,412 62,544 39 1- to 4-family 45,488 51,775 55,986 51,842 52,181 54,227 55,986 57,142 40 Multifamily 5,603 5,552 5,426 5,520 5,476 5,455 5,426 5,402 41 Federal Land Banks 31,277 38,131 46,446 40,258 42,681 44,708 46,446 47,947 42 1- to 4-family 1,552 2,099 2,788 2,228 2,401 2,605 2,788 2,874 43 Farm 29,725 36,032 43,658 38,030 40,280 42,103 43,658 45,073 44 Federal Home Loan Mortgage Corporation 4,035 5,068 5,255 5,161 5,257 5,433 5,255 5,320 45 1- to 4-family 3,059 3,873 4,018 3,953 4,025 4,166 4,018 4,075 46 Multifamily 976 1,195 1,237 1,208 1,232 1,267 1,237 1,245 47 Mortgage pools or trusts2 119,278 142,258 162,273 147,246 152,308 158,140 162,273 169,559 48 Government National Mortgage Association 76,401 93,874 105,790 97,184 100,558 103,750 105,790 108,645 49 1- to 4-family 74,546 91,602 103,007 94,810 98,057 101,068 103,007 105,769 50 Multifamily 1,855 2,272 2,783 2,374 2,501 2,682 2,783 2,876 51 Federal Home Loan Mortgage Corporation 15,180 16,854 19,843 17,067 17,565 17,936 19,843 23,959 52 1- to 4-family 12,149 13,471 15,888 13,641 14,115 14,401 15,888 18,995 53 Multifamily 3,031' 3,383 3,955 3,426 3,450 3,535 3,955 4,964 54 Farmers Home Administration 27,697 31,530 36,640 32,995 34,185 36,454 36,640 36,955 55 1- to 4-family 14,884 16,683 18,378 16,640 17,165 18,407 18,378 18,740 56 Multifamily 2,163 2,612 3,426 2,853 3,097 3,488 3,426 3,447 57 Commercial 4,328 5,271 6,161 5,382 5,750 6,040 6,161 6,351 58 Farm 6,322 6,964 8,675 8,120 8,173 8,519 8,675 8,417 59 Individual and others3 171,856 192,240 212,362' 197,324 203,841 208,807' 212,362' 216,149 60 1- to 4-family 99,418 112,645 126,070' 116,315 120,572 123,772' 126,070' 127,965 61 Multifamily 23,189 27,164 28,152' 27,208 27,593 27,906' 28,152' 28,787 62 Commercial 24,050 26,661 30,592' 27,573 28,850 29,814' 30,592' 31,291 63 Farm 25,199 25,770 27,548 26,228 26,826 27,315 27,548 28,106 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 for which separate data are not readily available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • June 1982 1.56 CONSUMER INSTALLMENT CREDIT1 Total Outstanding, and Net Change Millions of dollars 1982 Holder, and type of credit 1979 1980 1981 Feb. Mar. Amounts outstanding (end of period) 1 Total 312,024 313,472 333,375 330,135 327,435 327,131 328,363 By major holder 2 Commercial banks 154,177 147,013 149,300 148,162 146,922 146,454 146,616 3 Finance companies 68,318 76,756 89,818 88,925 89,009 89,591 90,674 4 5 C R r e e ta d i i l t e u rs n 2 i ons 4 2 6 8 , , 5 1 1 1 7 9 4 2 4 8 , , 0 4 4 4 1 8 4 2 5 9 , , 9 5 5 5 4 1 4 2 5 8 , , 9 1 0 7 7 9 4 2 5 7 , , 5 0 8 1 6 3 4 2 5 6 , , 6 5 3 3 2 0 4 2 5 6 , , 4 5 5 3 0 7 6 Savings and loans 8,424 9,911 11,598 11,668 11,738 11,926 12,081 7 Gasoline companies 3,729 4,468 4,403 4,541 4,433 4,229 4,227 8 Mutual savings banks... 2,740 2,835 2,751 2,753 2,734 2,769 2,778 By major type of credit 9 Automobile 116,362 116,838 126,431 125,525 125,294 125,559 126,201 10 Commercial banks ... 67,367 61,536 59,181 58,849 58,604 58,510 58,458 11 Indirect paper 38,338 35,233 35,097 35,029 34,920 34,888 34,920 12 Direct loans 29,029 26,303 24,084 23,820 23,684 23,622 23,538 13 Credit unions 22,244 21,060 21,975 21,953 21,799 21,821 21,733 14 Finance companies... 26,751 34,242 45,275 44,723 44,891 45,228 46,010 15 Revolving 56,937 58,352 63,049 61,433 59,514 58,491 58,641 16 Commercial banks .., 29,862 29,765 33,110 32,643 31,923 31,532 31,638 17 Retailers 23,346 24,119 25,536 24,249 23,158 22,730 22,776 18 Gasoline companies.. 3,729 4,468 4,403 4,541 4,433 4,229 4,227 19 Mobile home 16,838 17,322 18,486 18,397 18,343 18,363 18,402 20 Commercial banks ... 10,647 10,371 10,300 10,206 10,111 10,037 9,974 21 Finance companies... 3,390 3,745 4,494 4,481 4,506 4,548 4,608 22 Savings and loans 2,307 2,737 3,203 3,222 3,241 3,293 3,336 23 Credit unions 494 469 489 488 485 486 484 24 Other 121,887 120,960 125,409 124,780 124,284 124,718 125,119 25 Commercial banks ... 46,301 45,341 46,709 46,464 46,284 46,375 46,546 26 Finance companies... 38,177 38,769 40,049 39,721 39,612 39,815 40,056 27 Credit unions 23,779 22,512 23,490 23,466 23,302 23,326 23,233 28 Retailers 4,773 4,329 4,015 3,930 3,855 3,800 3,761 29 Savings and loans 6,117 7,174 8,395 8,446 8,497 8,633 8,745 30 Mutual savings banks. 2,740 2,835 2,751 2,753 2,734 2,769 2,778 Net change (during period)3 31 Total 38,381 1,448 19,894 443 75 990 1,175 By major holder 32 Commercial banks 18,161 -7,163 2,284 10 -171 166 96 33 Finance companies 14,020 8,438 13,062 -597 307 673 544 3 3 4 5 C R r e e ta d i i l t e u rs n 2 i ons 2 2 , , 1 1 3 8 2 5 -2,4 3 7 2 5 9 1 1 , , 1 9 0 1 3 3 6 2 8 7 9 - - 1 1 2 3 4 5 -1 1 2 7 2 1 1 1 8 3 1 2 36 Savings and loans 1,327 1,485 1,682 172 173 251 205 37 Gasoline companies 509 739 -65 39 36 -150 -6 38 Mutual savings banks... 47 95 -85 103 -11 1 23 By major type of credit 39 Automobile 14,715 477 9,595 -121 -56 -28 233 40 Commercial banks .., 6,857 -5,830 -2,355 103 -180 -248 -159 41 Indirect paper 4,488 -3,104 -136 232 -141 -130 2 42 Direct loans 2,369 -2,726 -2,219 -129 -39 -118 -161 43 Credit unions 1,044 -1,184 914 345 -59 -55 54 44 Finance companies.., 6,814 7,491 11,033 -569 183 275 338 45 Revolving 8,628 1,415 4,697 -196 -155 307 499 46 Commercial banks ... 5,521 -97 3,345 -276 -65 296 285 47 Retailers 2,598 773 1,417 41 -126 161 220 48 Gasoline companies.. 509 739 -65 39 36 -150 -6 49 Mobile home 1,603 483 1,161 -26 -44 15 51 50 Commercial banks ... 1,102 -276 -74 -74 -110 -82 -48 51 Finance companies... 238 355 749 6 56 52 53 52 Savings and loans 240 430 466 30 14 47 43 53 Credit unions 23 -25 20 12 -4 -2 3 54 Other 13,435 -927 4,441 786 330 696 392 55 Commercial banks ... 4,681 -960 1,368 257 184 200 18 56 Finance companies... 6,968 592 1,280 -34 68 346 153 57 Credit unions 1,118 -1,266 975 332 -72 -65 75 58 Retailers -466 -444 -314 -14 2 10 -39 59 Savings and loans 1,087 1,056 1,217 142 159 204 162 60 Mutual savings banks. 47 95 -85 103 -11 1 23 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, NOTE: Total consumer noninstallment credit outstanding—credit scheduled to and scheduled to be repaid (or with the option of repayment) in two or more be repaid in a lump sum, including single-payment loans, charge accounts, and installments. service credit—amounted to, not seasonally adjusted $71.3 billion at the end of 2. Includes auto dealers and excludes 30-day charge credit held by travel and 1979, $74.8 billion at the end of 1980, and $80.2 billion at the end of 1981 entertainment companies. 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. 1982 TT U ^ e Jan. Feb. Mar. Apr. Extensions 324,777 306,076 336,341 26,888 27,150 27,462 28,648 By major holder 2 Commercial banks 154,733 134,960 146,186 11,775 12,431 12,519 1122,,779900 3 Finance companies 61,518 60,801 66,344 4,433 4,857 5,002 5,343 4 Credit unions 34,926 29,594 35,444 3,326 2,695 2,631 3,010 5 Retailers1 47,676 49,942 53,430 4,385 4,254 4,536 4,618 6 Savings and loans 5,901 6,621 8,142 716 754 788 823 7 Gasoline companies 18,005 22,253 24,902 2,000 2,007 1,835 1,915 8 Mutual savings banks 2,018 1,905 1,893 253 152 151 185 By major type of credit 9 Automobile 93,901 83,454 94,404 77,,447744 77,,228833 77,,118833 77,,887711 10 Commercial banks 53,554 41,109 42,792 3,696 3,415 3,393 3,499 11 Indirect paper 29,623 22,558 24,941 2,293 1,875 1,875 2,079 12 Direct loans 23,931 18,551 17,851 1,403 1,540 1,518 1,420 13 Credit unions 17,397 15,294 18,084 1,702 1,363 1,420 1,542 14 Finance companies 22,950 27,051 33,527 2,076 2,505 2,370 2,830 15 Revolving 120,174 128,068 140,135 11,070 11,730 12,143 12,416 61,048 61,593 67,370 5,135 5,928 6,235 6,309 41,121 44,222 47,863 3,935 3,795 4,073 4,192 18,005 22,253 24,902 2,000 2,007 1,835 1,915 6,471 5,093 6,028 434 364 411 544 20 Commercial banks 4,542 2,937 3,106 188 136 156 253 21 Finance companies 797 898 1,313 99 117 120 122 948 1,146 1,432 122 102 126 151 184 113 176 25 9 9 18 24 Other 104,231 89,461 95,774 7,910 7,773 7,725 7,853 35,589 29,321 32,918 2,756 2,952 2,735 2,729 26 Finance companies 37,771 32,852 31,504 2,258 2,235 2,512 2,391 27 Credit unions 17,345 14,187 17,182 1,599 1,323 1,202 1,450 28 Retailers 6,555 5,720 5,567 450 459 463 426 29 Savings and loans 4,953 5,476 6,710 594 652 662 672 30 Mutual savings banks 2,018 1,905 1,893 253 152 151 185 Liquidations 286,396 304,628 316,447 26,445 27,075 26,472 27,509 By major holder 32 Commercial banks 136,572 142,123 143,902 11,765 12,602 12,353 12,694 33 Finance companies 47,498 52,363 53,282 5,030 4,550 4,329 4,799 32,741 32,069 33,531 2,637 2,830 2,753 2,878 35 Retailers1 45,544 49,613 52,327 4,358 4,378 4,365 4,437 4,574 5,136 6,640 544 581 537 618 37 Gasoline companies 17,496 21,514 24,967 1,961 1,971 1,985 1,921 38 Mutual savings banks 1,971 1,810 1,978 150 163 150 162 By major type of credit 39 Automobile 7799,,118866 8822,,997777 8844,,880099 77,,559955 77,,333399 77,,221111 77,,663388 46,697 46,939 45,147 3,593 3,595 3,641 3,658 25,135 25,662 25,077 2,061 2,016 2,005 2,077 21,562 21,277 20.070 1,532 1,579 1,636 1,581 43 Credit unions 16,353 16,478 17,169 1,357 1,422 1,475 1,488 16,136 19,560 22,494 2,645 2,322 2,095 2,492 111,546 126,653 135,438 11,266 11,885 11,836 11,917 55,527 61,690 64.025 5,411 5,993 5,939 6,024 38,523 43,449 46,446 3,894 3,921 3,912 3,972 48 Gasoline companies 17,496 21,514 24,967 1,961 1,971 1,985 1,921 4,868 4,610 4,867 460 408 396 493 3,440 3,213 3,180 262 246 238 301 559 543 564 93 61 68 69 708 716 966 92 88 79 108 161 138 156 13 13 11 15 90,796 90,388 91,333 7,124 7,443 7,029 7,461 30,908 30,281 31,550 2,499 2,768 2,535 2,711 30,803 32,260 30,224 2,292 2,167 2,166 2,238 16,227 15,453 16,207 1,267 1,395 1,267 1,375 7,021 6,164 5,881 464 457 453 465 3,866 4,420 5,493 452 493 458 510 1,971 1,810 1,978 150 163 150 162 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 • June 1982 1.58 FUNDS RAISED IN U.S. CREDIT MARKETS Billions of dollars; half-yearly data are at seasonally adjusted annual rates. 1979 1980 1981 TTrraannssaaccttiioonn ccaatteeggoorryy,, sseeccttoorr 11997766 11997777 11997788 11997799 11998800 11998811'' HI H2 HI H2 HI' H2r Nonfinancial sectors 1 Total funds raised 273.6 336.6 395.6 387.0 371.9 376.0 385.0 389.0 339.0 404.9 418.4 333.6 2 Excluding equities 262.8 333.5 396.3 394.0 357.0 387.4 394.7 393.3 330.1 383.8 416.9 358.0 By sector and instrument 3 U.S. government 69.0 56.8 53.7 37.4 79.2 87.4 30.0 44.7 66.5 91.9 86.1 88.6 4 Treasury securities 69.1 57.6 55.1 38.8 79.8 87.8 32.3 45.2 67.2 92.4 86.7 89.0 5 Agency issues and mortgages -.1 -.9 -1.4 -1.4 -.6 -.5 -2.3 -.5 -.6 -.6 -.5 -.4 6 All other nonfinancial sectors 204.6 279.9 342.0 349.6 292.7 288.6 355.0 344.3 272.5 313.0 332.3 244.9 7 Corporate equities 10.8 3.1 -.6 -7.1 15.0 -11.5 -9.8 -4.3 8.9 21.0 1.5 -24.5 8 Debt instruments 193.8 276.7 342.6 356.7 277.8 300.1 364.7 348.6 263.6 292.0 330.7 269.4 9 Private domestic nonfinancial sectors 185.0 266.0 308.7 328.6 263.4 264.1 341.0 316.1 241.3 285.6 297.1 231.2 1U Corporate equities 10.5 2.7 -.1 -7.8 12.9 -11.5 -9.6 -6.1 6.9 18.8 .9 -23.8 11 Debt instruments 174.5 263.2 308.8 336.4 250.6 275.6 350.6 322.2 234.4 266.2 296.2 255.0 12 Debt capital instruments 123.7 172.2 193.7 200.1 179.4 147.8 203.0 197.2 177.0 181.9 171.1 124.5 13 State and local obligations 15.7 21.9 26.1 21.8 26.9 25.8 20.9 22.7 21.6 32.1 28.8 22.8 14 Corporate bonds 22.8 21.0 20.1 21.2 30.4 20.2 21.7 20.7 35.3 25.6 22.8 1177..66 Mortgages 1155 Home mortgages 64.0 96.3 108.5 113.7 81.7 62.2 117.6 109.8 76.5 87.0 77.3 47.2 16 Multifamily residential 3.9 7.4 9.4 7.8 8.5 4.6 8.0 7.6 8.2 8.8 5.0 4.2 17 Commercial 11.6 18.5 22.1 24.4 22.4 25.3 23.4 25.4 24.8 19.9 28.4 22.1 18 Farm 5.7 7.1 7.5 11.3 9.5 9.8 11.6 11.0 10.6 8.4 8.9 10.7 19 Other debt instruments 50.7 91.0 115.1 136.3 71.1 127.8 147.6 125.0 57.4 84.9 125.1 130.4 2U Consumer credit 25.4 40.2 47.6 46.3 2.3 25.3 50.9 41.6 -5.1 9.7 29.5 21.1 21 Bank loans n.e.c 4.4 26.7 37.1 49.2 37.3 50.1 55.5 42.8 13.5 61.2 42.0 58.3 22 Open market paper 4.0 2.9 5.2 11.1 6.6 19.2 8.0 14.2 24.8 -11.6 16.0 22.3 23 Other 16.9 21.3 25.1 29.7 24.9 33.2 33.1 26.4 24.1 25.6 37.6 28.7 24 By borrowing sector 185.0 266.0 308.7 328.6 263.4 264.1 341.0 316.1 241.3 285.6 297.1 231.2 25 State and local governments 15.2 17.3 20.9 18.4 25.3 23.1 17.9 18.9 19.7 30.9 26.2 20.0 2b Households 89.6 139.1 164.3 170.6 101.7 103.6 179.1 162.1 94.2 109.1 124.3 82.8 27 Farm 10.2 12.3 15.0 20.8 14.5 16.4 21.2 20.4 17.9 11.1 22.7 10.0 28 Nonfarm noncorporate 5.7 12.7 15.3 14.0 15.8 13.8 13.5 14.5 11.0 20.6 16.1 11.6 29 Corporate 64.3 84.6 93.2 104.8 106.1 107.3 109.3 100.2 98.4 113.8 107.8 106.7 30 Foreign 19.6 13.9 33.2 21.0 29.3 24.4 14.0 28.1 31.2 27.4 35.1 13.8 31 Corporate equities .3 .4 -.5 .8 2.1 * -.2 1.7 1.9 2.2 .6 -.7 32 Debt instruments 19.3 13.5 33.8 20.3 27.2 24.5 14.1 26.4 29.2 25.2 34.5 14.4 33 Bonds 8.6 5.1 4.2 3.9 .8 5.6 2.8 4.9 2.0 -.4 3.3 7.8 34 Bank loans n.e.c 5.6 3.1 19.1 2.3 11.5 .8 2.1 2.4 6.1 17.0 5.7 -4.1 35 Open market paper 1.9 2.4 6.6 11.2 10.1 13.9 6.1 16.3 15.7 4.5 20.6 7.1 36 U.S. government loans 3.3 3.0 3.9 3.0 4.7 4.2 3.1 2.8 5.4 4.0 4.9 3.6 Financial sectors 37 Total funds raised 23.4 51.4 76.8 84.3 66.7 88.6 87.8 80.8 59.8 73.5 92.6 84.6 By instrument 38 U.S. government related 15.1 21.9 36.7 48.2 43.0 44.4 43.7 52.8 44.7 41.3 40.6 48.2 39 Sponsored credit agency securities 3.3 7.0 23.1 24.3 24.4 30.1 21.2 27.3 25.1 23.7 24.0 36.1 40 Mortgage pool securities 12.2 16.1 13.6 24.0 18.6 14.3 22.5 25.5 19.6 17.6 16.5 12.1 41 Loans from U.S. government -.4 -1.2 0 0 0 0 0 0 0 0 0 0 42 Private financial sectors 8.2 29.5 40.1 36.0 23.7 44.2 44.1 28.0 15.2 32.2 52.0 36.4 43 Corporate equities -.2 2.6 1.8 2.5 6.2 8.3 3.6 1.4 7.1 5.2 9.7 7.0 44 Debt instruments 8.4 26.9 38.3 33.6 17.5 35.9 40.6 26.6 8.1 27.0 42.3 29.4 45 Corporate bonds 9.8 10.1 7.5 7.8 7.1 -.8 8.2 7.5 10.1 4.2 -2.0 .3 46 Mortgages 2.1 3.1 .9 -1.2 -.9 -2.9 .3 -2.6 -5.8 4.0 -2.9 -2.9 47 Bank loans n.e.c -3.7 -.3 2.8 -.4 -.5 2.5 -1.4 .6 » -.9 4.6 .3 48 Open market paper and RPs 2.2 9.6 14.6 18.2 4.6 20.9 25.4 10.9 -.8 10.1 24.6 17.3 49 Loans from Federal Home Loan Banks -2.0 4.3 12.5 9.2 7.1 16.2 8.2 10.1 4.6 9.6 18.0 14.5 By sector 50 Sponsored credit agencies 2.9 5.8 23.1 24.3 24.4 30.1 21.2 27.3 25.1 23.7 24.0 36.1 51 Mortgage pools 12.2 16.1 13.6 24.0 18.6 14.3 22.5 25.5 19.6 17.6 16.5 12.1 52 Private financial sectors 8.2 29.5 40.1 36.0 23.7 44.2 44.1 2288..00 1155..22 32.2 52.0 36.4 53 Commercial banks 2.3 1.1 1.3 1.6 .5 .4 1.3 11..88 ..88 .3 .2 5 54 Bank affiliates 5.4 2.0 7.2 6.5 6.9 8.3 8.0 4.9 5.8 8.0 6.9 9.7 55 Savings and loan associations .1 9.9 14.3 11.4 6.9 13.1 11.1 11.7 -1.4 15.2 17.2 8.9 56 Other insurance companies .9 1.4 .8 .9 .9 .9 .9 .9 .9 .9 .9 .9 57 Finance companies 4.3 16.9 18.1 16.8 5.8 14.4 22.7 10.9 5.2 6.3 18.3 10.6 58 REITs -2.2 -2.3 -1.1 -.4 -1.7 -.7 -.6 -.2 -1.4 -2.0 -.8 -.5 59 Open-end investment companies -2.4 .4 -.5 -.6 4.4 7.8 .7 -1.9 5.3 3.4 9.3 6.3 All sectors 60 Total funds raised, by instrument 297.0 388.0 472.5 471.3 438.6 464.6 472.8 469.7 398.8 478.4 511.0 418.2 61 Investment company shares -2.4 .4 -.5 -.6 4.4 7.8 .7 -1.9 5.3 3.4 9.3 6.3 62 Other corporate equities 13.1 5.3 1.7 -4.0 16.8 -11.0 -6.9 -1.0 10.7 22.8 1.9 -23.8 63 Debt instruments 286.4 382.3 471.3 475.8 417.5 467.7 479.0 472.6 382.9 452.1 499.8 435.6 64 U.S. government securities 84.6 79.9 90.5 85.7 122.3 131.9 73.8 97.6 111.3 133.2 126.8 136.9 65 State and local obligations 15.7 21.9 26.1 21.8 26.9 25.8 20.9 22.7 21.6 32.1 28.8 22.8 66 Corporate and foreign bonds 41.2 36.1 31.8 32.8 38.4 24.9 32.6 33.0 47.4 29.5 24.1 25.7 bl Mortgages 87.2 132.3 148.3 155.9 121.1 98.8 160.6 151.1 114.2 128.0 116.6 81.1 68 Consumer credit 25.4 40.2 47.6 46.3 2.3 25.3 50.9 41.6 -5.1 9.7 29.5 21.1 69 Bank loans n.e.c 6.2 29.5 59.0 51.0 48.4 53.4 56.2 45.8 19.6 77.2 52.3 54.5 ;o Open market paper and RPs 8.1 15.0 26.4 40.5 21.4 54.0 39.5 41.5 39.7 3.1 61.3 46.7 n Other loans 17.8 27.4 41.5 41.9 36.7 53.7 44.4 39.3 34.1 39.3 60.5 46.8 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 1979 1980 1981 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 11997766 11997777 11997788 11997799 11998800 11998811'' HI H2 HI H2 HI' H2' 1 Total funds advanced in credit markets to nonfinancial sectors 262.8 333.5 396.3 394.0 357.0 387.4 394.7 393.3 330.1 383.8 416.9 358.0 By public agencies and foreign 2 Total net advances 49.8 79.2 101.9 74.0 92.1 91.2 49.6 98.5 102.9 81.3 103.6 78.8 3 U.S. government securities 23.1 34.9 36.1 -6.2 15.6 17.2 -27.1 14.7 23.2 8.0 24.3 10.1 4 Residential mortgages 12.3 20.0 25.7 36.7 31.1 22.7 35.7 37.8 33.3 28.9 20.8 24.6 5 FHLB advances to savings and loans -2.0 4.3 12.5 9.2 7.1 16.2 8.2 10.1 4.6 9.6 18.0 14.5 6 Other loans and securities 16.4 20.1 27.6 34.3 38.2 35.0 32.8 35.8 41.7 34.8 40.5 29.6 Total advanced, by sector 7 U.S. government 7.9 10.0 17.1 19.0 23.7 24.1 19.8 18.3 25.4 22.1 27.7 20.5 8 Sponsored credit agencies 16.8 22.4 39.9 53.4 43.8 45.3 47.8 58.9 42.4 45.2 42.2 48.3 9 Monetary authorities 9.8 7.1 7.0 7.7 4.5 9.2 -.9 16.2 12.1 -3.1 -7.3 25.6 10 Foreign 15.2 39.6 38.0 -6.1 20.0 12.6 -17.2 5.1 23.0 17.0 40.9 -15.7 11 Agency borrowing not included in line 1 15.1 21.9 36.7 48.2 43.0 44.4 43.7 52.8 44.7 41.3 40.6 48.2 Private domestic funds advanced 12 Total net advances 228.1 276.2 331.0 368.2 307.9 340.6 388.9 347.6 271.9 343.8 353.8 327.5 13 U.S. government securities 61.5 45.1 54.3 91.9 106.7 114.7 101.0 82.9 88.1 125.3 102.6 126.8 14 State and local obligations 15.7 21.9 26.1 21.8 26.9 25.8 20.9 22.7 21.6 32.1 28.8 22.8 15 Corporate and foreign bonds 30.5 22.2 22.4 24.0 26.2 21.0 24.0 24.0 32.5 19.9 19.6 22.5 16 Residential mortgages 55.5 83.7 92.1 84.6 59.1 44.0 89.8 79.5 51.2 66.9 61.4 26.6 17 Other mortgages and loans 62.9 107.7 148.6 155.1 96.2 151.4 161.4 148.7 83.1 109.3 159.5 143.2 18 LESS: Federal Home Loan Bank advances -2.0 4.3 12.5 9.2 7.1 16.2 8.2 10.1 4.6 9.6 18.0 14.5 Private financial intermediation 19 Credit market funds advanced by private financial institutions 191.4 260.9 302.4 292.5 270.3 302.5 316.9 268.0 246.1 294.4 318.9 286.2 20 Commercial banking 59.6 87.6 128.7 121.1 99.7 99.8 130.3 112.0 58.5 140.9 101.6 98.0 21 Savings institutions 70.5 82.0 73.5 55.9 58.4 24.1 59.6 52.2 35.5 81.3 38.4 9.8 22 Insurance and pension funds 49.7 67.8 75.0 66.4 79.8 81.9 72.3 60.5 89.2 70.3 79.3 84.5 23 Other finance 11.6 23.4 25.2 49.0 32.4 96.7 54.8 43.3 62.8 1.9 99.5 93.9 24 Sources of funds 191.4 260.9 302.4 292.5 270.3 302.5 316.9 268.0 246.1 294.4 318.9 286.2 25 Private domestic deposits 124.4 138.9 140.8 143.2 171.1 204.8 135.1 151.2 158.7 183.6 203.6 206.1 26 Credit market borrowing 8.4 26.9 38.3 33.6 17.5 35.9 40.6 26.6 8.1 27.0 42.3 29.4 27 Other sources 58.5 95.1 123.2 115.7 81.6 61.8 141.2 90.3 79.4 83.8 73.0 50.7 28 Foreign funds -4.7 1.2 6.3 25.6 -22.3 -10.4 45.6 5.6 -22.8 -21.9 -6.5 -14.4 29 Treasury balances -.1 4.3 6.8 .4 -2.6 -1.1 5.0 -4.2 -2.3 -2.8 10.8 -13.0 30 Insurance and pension reserves 34.3 50.1 62.2 47.8 64.1 71.4 52.3 43.4 70.0 58.1 62.7 80.1 31 Other, net 29.0 39.5 48.0 41.9 42.4 2.0 38.4 45.4 34.5 50.4 6.0 -1.9 Private domestic nonfinancial investors 32 Direct lending in credit markets 45.1 42.2 67.0 109.3 55.1 74.0 112.5 106.1 33.9 76.4 77.3 70.7 33 U.S. government securities 16.4 24.1 35.6 62.8 32.6 44.8 71.0 54.5 19.3 45.8 37.1 52.4 34 State and local obligations 3.3 -.8 1.4 1.4 3.1 15.5 2.6 .2 -1.8 7.9 20.6 10.5 35 Corporate and foreign bonds 11.8 -3.8 -2.9 10.3 3.6 -10.4 4.6 16.0 4.8 2.3 -10.2 -10.6 36 Commercial paper 1.9 9.6 16.5 11.4 -3.8 4.3 11.4 11.4 -4.5 -3.1 4.9 3.8 37 Other 11.7 13.2 16.4 23.5 19.7 19.7 22.9 24.0 16.0 23.3 24.8 14.6 38 Deposits and currency 133.4 148.5 152.1 152.6 182.3 213.7 149.3 155.9 167.6 197.1 209.5 217.9 39 Currency 7.3 8.3 9.3 7.9 10.3 9.5 9.0 6.9 8.5 12.1 4.7 14.3 40 Checkable deposits 10.4 17.2 16.3 19.2 4.2 16.9 16.6 21.9 -1.5 9.9 28.9 4.9 41 Small time and savings accounts 123.7 93.5 63.5 61.7 80.9 40.7 66.5 56.9 66.7 95.2 14.6 66.8 42 Money market fund shares * .2 6.9 34.4 29.2 107.5 30.2 38.6 61.9 -3.4 104.1 110.8 43 Large time deposits -12.0 25.8 46.6 21.2 50.3 36.8 3.3 39.1 26.3 74.2 48.3 25.3 44 Security RPs 2.3 2.2 7.5 6.6 6.5 3.0 18.5 -5.3 5.3 7.8 7.7 -1.7 45 Foreign deposits 1.7 1.3 2.0 1.5 .9 -.6 5.2 -2.3 .4 1.3 1.2 -2.5 46 Total of credit market instruments, deposits and currency 178.5 190.7 219.1 261.9 237.5 287.7 261.8 262.0 201.5 273.4 286.8 288.6 47 Public support rate (in percent) 19.0 23.7 25.7 18.8 25.8 23.5 12.6 25.0 31.2 21.2 24.9 22.0 48 Private financial intermediation (in percent)... 83.9 94.4 91.3 79.4 87.8 88.8 81.5 77.1 90.5 85.6 90.1 87.4 49 Total foreign funds 10.5 40.8 44.3 19.5 -2.3 2.2 28.4 10.7 .2 -4.8 34.5 -30.1 MEMO: Corporate equities not included above 50 Total net issues 10.6 5.7 1.2 -4.6 21.1 -3.1 -6.2 -2.9 16.0 26.3 11.2 -17.5 51 Mutual fund shares -2.4 .4 -.5 -.6 4.4 7.8 .7 -1.9 5.3 3.4 9.3 6.3 52 Other equities 13.1 5.3 1.7 -4.0 16.8 -11.0 -6.9 -1.0 10.7 22.8 1.9 -23.8 53 Acquisitions by financial institutions 12.5 7.4 4.5 10.6 17.7 22.4 7.1 14.0 10.5 24.9 26.4 18.4 54 Other net purchases -1.9 -1.6 -3.4 -15.1 3.4 -25.5 -13.4 -16.9 5.5 1.4 -15.2 -35.9 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 • June 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb.' Mar. Apr.P Mayc 1 Industrial production' 152.5 147.0 151.0 153.6 151.6 149.1 146.3 143.4 140.7 142.9 141.7 140.6 140.3 Market groupings 2 Products, total 150.0 146.7 150.6 152.6 151.0 149.4 147.5 146.2 142.9 144.6 143.8 143.4 143.3 3 Final, total 147.2 145.3 149.5 151.5 150.0 148.9 147.2 146.3 142.8 144.1 143.4 143.2 143.3 4 Consumer goods 150.8 145.4 147.9 149.6 147.8 146.5 144.0 142.0 139.6 141.8 141.5 142.6 143.8 5 Equipment 142.2 145.2 151.8 154.0 152.9 152.1 151.5 152.1 147.2 147.3 145.9 144.1 142.6 6 Intermediate 160.5 151.9 154.4 156.8 154.6 151.4 148.7 145.9 143.4 146.3 145.2 143.8 143.5 7 Materials 156.4 147.6 151.6 155.2 152.5 148.5 144.6 139.0 137.2 140.4 138.6 136.4 135.5 Industry groupings 8 Manufacturing 153.6 146.7 150.4 153.2 151.1 148.2 145.0 142.0 138.5 140.9 140.2 139.2 139.1 Capacity utilization (percent)1-2 9 Manufacturing 85.7 79.1 78.5 79.6 78.3 76.6 74.8 73.1 71.1 72.2 71.7 71.0 70.8 10 Industrial materials industries .... 87.4 80.0 79.9 81.7 80.0 77.7 75.5 72.4 71.4 72.9 71.8 70.5 69.9 11 Construction contracts (1977 = 100)3 121.0 106.0 107.0 99.0 100.0 101.0 92.0 112.0 115.0 97.0 105.0 n.a. n.a. 12 Nonagricultural employment, total4 . 136.5 137.6 139.1 138.8r 138.8r 138.6' 138.3r 137.7' 137.5' 137.5' 137.2' 136.8' 136.7 13 Goods-producing, total 113.5 110.3 110.2 110.0' 109.8r 108.9' 108.0' 106.9' 105.9' 105.7' 104.9' 103.9' 103.7 14 Manufacturing, total 108.2 104.4 104.2 104.4' 104.2' 103.3' 102.3' 101.2' 100.4' 100.0' 99.3' 98.5' 98.3 15 Manufacturing, productionworker 105.3 99.4 98.5 98.8r 98.5r 97.3 95.9' 94.3' 93.2 92.9' 92.1' 91.1' 91.0 16 Service-producing 149.1 152.6 155.0 154.6r 154.8' 154.9r 154.9' 154.7' 154.8' 154.9' 155.0' 154.8' 154.8 17 Personal income, total 308.5 342.9 381.6 387.8 390.9 392.9' 395.6 395.6 396.5' 398.9' 400.4' 401.8 n.a. 18 Wages and salary disbursements .. 289.5 314.7 347.2 351.4 353.7 355.4 357.8 356.5 358.6 361.3' 360.8' 360.1 n.a. 19 Manufacturing 248.6 261.5 288.8r 294.3 294.9 293.7 292.2 288.8 289.3 292.5r 289.9' 288.6 n.a. 20 Disposable personal income5 299.6 332.5 379.6 372.9 375.5 379.6 382.0 381.8 384.0 383.9' 385.5' 387.6' 390.5 21 Retail sales6 281.6 303.8 330.6 338.5 338.9 331.1 333.3 334.1 326.0 334.9 333.5' 328.3' 341.0 Prices7 22 Consumer 217.4 246.8 272.4 276.5 279.3 279.9 280.7 281.5 282.5 283.4 283.1 284.3 n.a. 23 Producer finished goods 217.7 247.0 269.8 271.5 271.5 274.3 274.7 275.4 277.4 277.4 276.9 276.9 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 1982 1981 1982 1981 1982 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Output (1967 = 100) Capacity (percent of 1967 output) Utilization rate (percent) 1 Manufacturing 152.4 152.5 145.0 139.9 190.9 192.4 193.9 195.2 79.8 79.3 74.8 71.7 2 Primary processing 156.5 155.8 143.5 137.1 195.0 196.3 197.5 198.6 80.3 79.4 72.7 69.1 3 Advanced processing 150.2 150.7 145.8 141.7 188.7 190.4 192.0 193.5 79.6 79.2 75.9 73.2 4 Materials 153.4 154.3 144.0 138.7 189.0 190.3 191.5 192.6 81.2 81.1 75.2 72.0 5 Durable goods 152.3 152.8 140.2 130.9 192.9 194.2 195.3 196.4 78.9 78.7 71.8 66.6 6 Metal materials 112.8 114.2 99.5 90.8 141.7 141.9 142.1 142.3 79.6 80.5 70.1 63.8 7 Nondurable goods 178.4 175.8 164.5 161.1 209.2 211.2 213.1 214.6 85.3 83.3 77.2 75.0 8 Textile, paper, and chemical 185.9 182.8 169.4 164.6 219.4 221.7 223.9 225.6 84.8 82.5 75.7 73.0 9 Textile 114.5 115.5 106.8 101.2 140.6 141.0 141.6 142.1 81.4 81.8 75.4 71.2 10 Paper 151.0 152.2 147.0 146.4 160.7 161.9 162.8 163.8 93.9 94.1 90.3 89.4 11 Chemical 231.6 224.9 206.2 200.0 277.5 281.0 284.4 287.3 83.5 80.0 72.5 69.6 12 Energy materials 125.1 131.6 127.9 130.0 154.3 155.0 155.8 156.5 81.1 84.9 82.1 83.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Labor Market A47 2.11 Continued Previous cycle1 Latest cycle2 1981 1982 High Low High Low May Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr May Capacity utilization rate (percent) 13 Manufacturing 88.0 69.0 87.2 74.9 80.0 78.3 76.6 74.8 73.1 71.1 72.2 71.7 71.0 70.8 14 Primary processing 93.8 68.2 90.1 71.0 80.6 78.2 75.7 72.7 69.6 68.5 70.0 68.7 67.4 67.0 15 Advanced processing.... 85.5 69.4 86.2 77.2 79.8 78.3 77.0 75.8 75.0 72.8 73.6 73.2 72.9 72.8 16 Materials 92.6 69.4 88.8 73.8 81.1 80.0 77.7 75.5 72.4 71.4 72.9 71.8 70.5 69.9 17 Durable goods 91.5 63.6 88.4 68.2 79.2 77.3 74.7 72.2 68.5 66.2 67.4 66.4 65.0 64.3 18 Metal materials 98.3 68.6 96.0 59.6 80.3 79.1 73.9 70.8 65.5 65.8 64.7 61.0 55.7 52.8 19 Nondurable goods 94.5 67.2 91.6 77.5 85.6 82.9 80.3 77.3 74.1 73.2 76.5 75.4 74.4 74.2 20 Textile, paper, and chemical 95.1 65.3 92.2 75.3 85.4 82.1 79.1 75.9 72.2 70.7 74.4 73.7 72.6 72.4 21 Textile 92.6 57.9 90.6 80.9 81.7 81.3 78.8 75.5 72.0 68.6 71.9 73.3 73.5 72.7 22 Paper 99.4 72.4 97.7 89.3 93.9 95.7 92.1 92.3 86.5 87.6 90.7 89.8 87.6 87.0 23 Chemical 95.5 64.2 91.3 70.7 84.3 79.2 76.2 72.4 69.0 67.4 71.3 70.2 69.1 69.1 24 Energy materials 94.6 84.8 88.3 82.7 79.7 83.0 82.5 82.2 81.6 83.7 83.2 82.2 80.7 80.1 1. Monthly high 1973; monthly low 1975. 2. Preliminary; monthly highs December 1978 through January 1980; monthly lows July 1980 through October 1980. 2.12 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data are seasonally adjusted. Exceptions noted. 1981 1982 CCaatteeggoorryy 11997799 11998800 11998811 Nov.' Dec/ Jan.' Feb/ Mar.' Apr.r May HOUSEHOLD SURVEY DATA 1 Noninstitutional population1 166,951 169,847 172,272 173,154 173,330 173,494 173,657 173,842 174,019 174,201 2 Labor force (including Armed Forces)1 ... 107,050 109,042 110,812 111,430 111,348 111,038 111,333 111,521 111,823 112,841 3 Civilian labor force 104,962 106,940 108,670 109,272 109,184 108,879 109,165 109,346 109,648 110,666 4 Nonagricultural industries2 95,477 95,938 97,030 96,800 96,404 96,170 96,217 96,144 96,032 96,629 5 Agriculture 3,347 3,364 3,368 3,372 3,209 3,411 3,373 3,349 3,309 3,488 Unemployment 6 Number 6,137 7,637 8,273 9,100 9,571 9,298 9,575 9,854 10,307 10,549 7 Rate (percent of civilian labor force) . 5.8 7.1 7.6 8.3 8.8 8.5 8.8 9.0 9.4 9.5 8 Not in labor force 59,901 60,805 61,460 61,724 61,982 62,456 62,324 62,321 62,196 61,360 ESTABLISHMENT SURVEY DATA 9 Nonagricultural payroll employment3 89,823 90,564 91,548 90,996 90,642 90,460 90,459 90,304 89,993 89,969 10 Manufacturing 21,040 20,300 20,264 19,903 19,676 19,517 19,454 19,319 19,154 19,120 11 Mining 958 1,020 1,104 1,202 1,206 1,201 1,203 1,197 1,182 1,158 12 Contract construction 4,463 4,399 4,307 4,071 4,026 3,966 3,974 3,934 3,890 3,899 13 Transportation and public utilities 5,136 5,143 5,152 5,150 5,128 5,125 5,115 5,100 5,089 5,064 14 Trade 20,192 20,386 20,736 20,623 20,524 20,630 20,670 20,655 20,583 20,629 15 Finance 4,975 5,168 5,330 5,324 5,331 5,326 5,326 5,336 5,328 5,327 16 Service 17,112 17,901 18,598 18,815 18,834 18,831 18,867 18,904 18,924 18,920 17 Government 15,947 16,249 16,056 15,908 15,917 15,864 15,850 15,859 15,843 15,852 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 • June 1982 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value Monthly data are seasonally adjusted. 1967 1981 1981 1982 Grouping pro- averportion age Apr. May June July Aug. Sept Oct. Nov. Jan. Mar. Apr. May' Index (1967 = 100) MAJOR MARKET 1 Total index 100.00 151.0 151.9 152.7 152.9 153.9 153.6 151.6 149.1 146.3 143.4 140.7 142.9 141.7 140.6 140.3 2 Products 60.71 150.6 151.3 152.3 152.2 153.0 152.6 151.0 149.4 147.5 146.2 142.9 144.6 143.8 143.4 143.3 3 Final products 47.82 149.5 149.9 151.3 151.4 152.1 151.5 150.0 148.9 147.2 146.3 142.8 144.1 143.4 143.2 143.3 4 Consumer goods 27.68 147.9 148.9 150.7 150.3 150.7 149.6 147.8 146.5 144.0 142.0 139.6 141.8 141.5 142.6 143.8 5 Equipment 20.14 151.8 151.4 152.1 153.0 154.1 154.0 152.9 152.1 151.5 152.1 147.2 147.3 145.9 144.1 142.6 6 Intermediate products 12.89 154.4 156.3 156.1 154.9 156.2 156.8 154.6 151.4 148.7 145.9 143.4 146.3 145.2 143.8 143.5 7 Materials 39.29 151.6 152.9 153.4 154.0 155.3 155.2 152.5 148.5 144.6 139.0 137.2 140.4 138.6 136.4 135.5 Consumer goods 8 Durable consumer goods 7.89 140.5 144.3 147.3 147.9 146.5 142.5 140.4 136.3 129.7 123.2 120.1 125.9 128.3 131.2 134.2 9 Automotive products 2.83 137.9 142.9 151.8 153.1 147.6 137.6 139.1 132.8 121.7 119.2 109.2 117.5 125.7 130.0 138.7 10 Autos and utility vehicles . 2.03 111.2 120.2 129.1 131.4 123.0 107.8 110.0 101.7 88.9 87.5 71.6 82.0 93.6 100.6 111.8 11 Autos 1.90 103.4 113.2 120.0 122.2 118.1 104.0 103.3 92.5 81.1 78.1 61.3 70.5 79.8 8877..22 9966..11 12 Auto parts and allied goods 80 205.6 200.8 209.5 208.0 210.0 213.1 212.9 211.8 205.0 199.7 204.4 207.8 207.1 204.5 207.0 13 Home goods 5.06 142.0 145.0 144.8 145.0 145.8 145.3 141.1 138.2 134.1 125.4 126.3 130.6 129.7 131.9 131.8 14 Appliances, A/C, and TV . 1.40 119.6 121.2 121.4 120.0 123.6 126.8 119.0 116.7 107.7 85.7 100.6 103.5 97.0 103.9 110055..77 15 Appliances and TV 1.33 121.2 122.6 122.3 121.4 124.8 128.9 121.4 118.7 108.7 86.6 101.6 104.1 97.4 104.4 16 Carpeting and furniture ... 1.07 158.0 165.2 163.1 166.3 163.2 160.1 158.6 152.6 146.9 144.4 137.9 147.8 151.3 151.3 17 Miscellaneous home goods 2.59 147.4 149.7 149.9 149.8 150.7 149.2 145.8 143.9 143.2 139.1 135.4 138.1 138.6 139.0 138.1 18 Nondurable consumer goods... 19.79 150.9 150.7 152.1 151.2 152.3 152.5 150.8 150.5 149.7 149.5 147.4 148.1 148.6 147.1 114477..66 19 Clothing 4.29 119.8 120.6 122.1 120.9 122.8 121.9 119.3 117.8 116 1 113 8 106 0 20 Consumer staples 15.50 159.5 159.0 160.3 159.6 160.5 161.0 159.5 159.6 159.0 159.4 115588..99 115599..22 115588..11 115588..44 115599..11 21 Consumer foods and 8.33 150.3 150.2 151.3 149.6 150.5 150.6 149 5 150 7 150 4 150 9 150 0 22 Nonfood staples 7.17 170.0 169.3 170.8 171.3 172.2 173.0 171.1 169.9 169.1 169.3 169.1 116688..77 168.1 116688..88 116699..44 23 Consumer chemical products 2.63 223.1 224.1 225.1 224.4 226.8 227.7 227.5 223.0 220.3 220.1 220.1 221188..22 217.8 221177..88 24 Consumer paper products 1.92 127.9 127.4 127.7 129.2 127.6 128.9 127.7 126.9 125.7 127.2 127.0 130.2 127.8 112288..55 25 Consumer energy products 2.62 147.7 144.9 147.9 148.9 150.0 150.4 146.4 148.2 149.4 149.1 148.9 147.2 147.7 114499..11 26 Residential utilities... 1.45 166.3 162.9 168.9 170.4 172.6 169.7 162.8 166.2 167.4 167.5 117722..33 117711..66 117700..44 Equipment 2277 Business 12.63 181.1 181.0 182.0 183.6 184.8 184.8 182.7 180.5 179.0 179.0 172.2 171.6 169.0 166.0 163.3 28 Industrial 6.77 166.4 165.9 167.0 169.0 169.4 170.2 168.9 166.9 165.1 164.0 158.1 155.9 151.2 147.0 142.6 29 Building and mining 1.44 286.2 281.7 286.4 289.7 290.3 293.0 293.6 295.6 293.8 294.6 289.0 274.9 256.9 243.1 230.5 30 Manufacturing 3.85 127.9 128.5 128.4 130.6 130.8 130.8 129.3 125.7 123.6 122.0 116.9 116.8 116.3 114.5 112.3 31 Power 1.47 149.7 149.9 150.8 151.2 151.6 152.7 150.4 148.4 147.1 145.5 137.4 141.1 139.0 137.6 135.8 32 Commercial transit, farm.... 5.86 198.0 198.6 199.4 200.4 202.5 200.9 198.5 196.2 195.0 196.3 188.5 189.9 189.5 187.9 187.2 33 Commercial 3.26 258.7 254.5 258.0 259.9 263.7 264.3 264.2 259.8 260.6 262.9 256.1 256.4 257.8 255.3 254.6 34 Transit 1.93 125.4 131.5 130.0 129.7 128.4 124.6 121.0 120.6 116.6 117.5 109.0 110.4 110.5 111.9 111111..66 35 Farm 67 112.0 119.7 113.9 114.9 118.0 111.8 102.1 104.6 101.7 98.9 88.4 95.1 84.9 78.8 36 Defense and space 7.51 102.7 101.5 102.0 101.7 102.6 102.8 103.0 104.5 105.3 107.0 105.2 106.5 107.2 107.3 107.9 Intermediate products 37 Construction supplies 6.42 141.9 147.9 146.5 143.4 144.3 144.0 139.7 135.2 130.1 127.0 124.2 127.5 125.7 123.4 112233..99 38 Business supplies 6.47 166.7 164.7 165.6 166.2 168.0 169.5 169.4 167.5 167.1 164.6 162.4 165.1 164.6 164.1 39 Commercial energy products 1.14 176.4 175.2 179.0 177.7 180.0 176.6 174.2 174.3 177.0 177.3 181.7 184.1 185.2 183.7 Materials 40 Durable goods materials 20.35 149.1 151.8 152.8 152.4 153.6 154.3 150.4 145.6 141.0 134.0 129.7 132.4 130.5 128.0 126.8 41 Durable consumer parts 4.58 114.5 119.7 121.1 123.1 123.2 121.8 114.5 107.6 102.8 92.9 86.9 92.2 93.9 95.6 98.0 42 Equipment parts 5.44 191.2 192.8 194.0 193.2 193.8 194.7 192.7 190.3 188.7 183.3 177.2 180.1 177.8 174.0 171.5 43 Durable materials n.e.c 10.34 142.3 144.3 145.1 143.9 145.9 147.4 144.1 138.9 132.9 126.1 123.6 125.1 121.8 118.1 111166..11 44 Basic metal materials .... 5.57 112.0 113.8 114.3 112.8 114.5 117.4 113.1 106.5 101.6 94.8 94.5 94.3 88.4 81.6 45 Nondurable goods materials ... 10.47 174.6 179.3 179.0 176.9 176.5 175.4 175.5 170.6 164.7 158.3 156.8 116644..22 116622..22 116600..55 116600..33 46 Textile, paper, and chemical materials 7.62 181.4 186.8 187.3 183.7 183.5 182.4 182.5 176.4 169.9 161.9 159.1 167.9 166.7 164.6 116644..55 47 Textile materials 1.85 113.0 115.1 114.9 113.4 115.5 116.0 114.9 111.6 106.9 102.0 97.3 102.2 104.1 104.6 48 Paper materials 1.62 150.6 152.2 150.9 149.8 150.0 151.5 155.1 149.6 150.2 141.2 143.2 148.5 147.4 143.9 49 Chemical materials 4.15 224.0 232.4 233.9 228.4 227.1 224.1 223.4 215.9 205.8 196.8 193.0 204.9 202.2 199.5 50 Containers, nondurable 1.70 169.3 172.0 167.8 171.4 171.7 169.4 170.9 166.7 163.5 161.9 162.4 166.7 162.3 159.6 51 Nondurable materials n.e.c. . 1.14 137.4 139.7 140.5 139.6 136.6 137.8 136.2 137.1 131.9 128.6 132.4 136.0 132.4 134.4 52 Energy materials 8.48 129.0 123.1 123.0 129.3 133.3 132.6 128.9 128.3 128.1 127.4 130.9 130.3 128.8 126.7 112255..77 53 Primary energy 4.65 115.0 104.2 104.4 113.7 120.3 120.9 117.4 116.4 115.6 115.9 119.2 119.5 120.3 117.6 54 Converted fuel materials 3.82 145.9 146.1 145.5 148.2 149.2 146.9 142.9 142.8 143.4 141.4 145.1 143.4 139.0 137.7 Supplementary groups 5555 Home goods and clothing 9.35 131.8 133.8 134.4 133.9 135.2 134.5 131.1 128.8 125.9 120.1 117.0 120.1 118.8 120.2 119.9 56 Energy, total 12.23 137.4 132.6 133.5 138.0 141.2 140.5 136.8 136.9 137.2 136.7 139.5 138.9 138.1 136.8 113366..33 57 Products 3.76 156.4 154.1 157.3 157.6 159.1 158.4 154.8 156.1 157.8 157.7 158.8 158.4 159.1 159.6 58 Materials 8.48 129.0 123.1 123.0 129.3 133.3 132.6 128.9 128.3 128.1 127.4 130.9 130.3 128.8 126.7 125.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Output A49 2.13 Continued 1967 1981 SIC pro- 1981 Grouping code por- avg.r tion Apr. May June July Aug. Sept. Oct. Nov. Dec Jan. Feb.r Mar. Apr.P May Index (1967 = 100) MAJOR INDUSTRY 1 Mining and utilities. 12.05 155.0 150.5 152.1 156.3 159.1 158.2 155.8 156.1 155.4 154.7 157.4 155.6 153.3 150.6 148.5 2 Mining 6.36 142.2 135.2 135.4 141.7 146.5 146.0 145.0 145.3 143.3 142.6 144.5 142.4 138.5 133.3 130.1 3 Utilities 5.69 169.1 167.6 170.7 172.7 173.1 171.9 167.8 168.1 168.9 168.2 171.8 170.4 169.9 170.0 169.1 4 Electric 3.88 190.9 188.6 192.9 195.6 196.2 194.2 188.3 189.4 190.9 190.2 195.2 192.5 191.6 191.6 190.3 5 Manufacturing 87.95 150.4 152.0 152.8 152.4 153.2 153.2 151.1 148.0 145.0 142.0 138.5 140.9 140.2 139.2 139.1 6 Nondurable 35.97 164.8 165.9 166.4 165.8 167.1 167.3 165.9 162.8 160.3 157.4 155.1 157.8 157.3 156.6 156.7 7 Durable 51.98 140.5 142.5 143.5 143.2 143.6 143.4 140.9 137.8 134.4 131.3 127.1 129.3 128.3 127.3 127.0 Mining 8 Metal 10 .51 123.1 123.1 125.0 123.5 123.6 124.1 121.5 119.8 115.4 110.9 121.3 120.8 109.3 99.4 9 Coal 11.12 .69 141.3 75.9 77.0 122.9 170.0 167.4 161.9 166.9 160.8 145.5 147.9 156.0 155.6 146.2 148.0 10 Oil and gas extraction ... 13 4.40 146.8 146.1 146.2 148.2 147.7 148.2 148.8 148.9 148.4 150.5 151.5 146.6 142.2 137.7 133.5 11 Stone and earth minerals. 14 .75 129.4 133.7 132.2 132.7 133.3 128.2 123.4 122.0 116.7 115.7 115.8 120.5 120.9 119.0 Nondurable manufactures 12 Foods 20 8.75 152.1 151.9 152.2 151.3 151.6 151.9 150.7 151.4 153.0 152.8 151.1 151.7 150.5 13 Tobacco products 21 .67 122.2 122.2 122.3 120.9 121.3 123.8 122.4 124.3 119.6 112.6 112.7 126.7 127.7 14 Textile mill products 22 2.68 135.7 138.9 138.8 138.3 139.4 140.7 136.3 132.5 126.1 122.8 120.0 125.8 126.0 126.9 15 Apparel products 23 3.31 120.4 121.6 122.6 121.1 122.6 122.6 122.5 117.8 113.8 114.1 105.7 16 Paper and products 26 3.21 155.0 157.0 155.9 153.4 154.9 156.7 158.6 153.3 152.6 146.6 148.3 151.5 150.8 149.5 148.0 17 Printing and publishing 27 4.72 144.2 141.6 141.3 143.1 144.4 146.1 145.9 145.6 143.4 145.3 145.6 146.4 145.9 144.7 143.5 18 Chemicals and products 28 7.74 215.6 219.8 220.6 218.4 221.5 219.2 216.3 208.8 204.6 199.8 196.7 201.3 200.3 198.1 19 Petroleum products 29 1.79 129.7 130.0 129.8 129.3 128.7 130.4 129.1 128.3 128.0 128.3 123.3 119.5 122.4 123.0 125.3 20 Rubber and plastic products . 30 2.24 274.0 275.2 280.3 285.1 285.3 286.7 282.2 276.0 264.1 247.3 244.7 251.8 252.9 255.1 21 Leather and products 31 .86 69.3 68.9 69.8 68.4 70.1 69.6 69.7 71.2 70.8 65.6 63.1 64.0 61.2 61.3 Durable manufactures 22 Ordnance, private and government 19.91 3.64 81.1 79.8 80.9 80.9 80.6 81.8 82.3 82.5 84.3 85.5 84.1 83.8 84.2 85.0 86.0 23 Lumber and products 24 1.64 119.1 126.3 126.2 122.5 122.9 119.1 113.2 109.6 104.7 104.8 99.2 104.9 103.5 102.9 24 Furniture and fixtures 25 1.37 157.2 158.7 158.9 162.4 164.9 163.3 159.9 157.2 153.7 149.4 144.3 148.4 150.3 151.0 25 Clay, glass, stone products 32 2.74 147.9 154.3 151.7 148.1 148.7 148.2 147.3 143.4 135.9 131.5 128.5 135.0 131.4 128.0 26 Primary metals 33 6.57 107.9 110.6 111.9 107.4 109.4 113.1 108.6 102.3 96.6 89.6 89.7 88.5 83.2 76.6 73.0 27 Iron and steel 331.2 4.21 99.8 103.4 105.6 98.5 99.7 105.1 99.2 92.2 87.2 79.2 79.6 78.5 73.4 65.4 28 Fabricated metal products. 34 5.93 136.4 139.5 138.4 139.3 140.1 140.0 136.8 133.8 130.2 126.1 120.7 121.4 121.1 120.1 119.1 29 Nonelectrical machinery... 35 9.15 171.2 169.7 172.1 174.1 176.7 176.4 173.9 169.7 167.9 167.4 160.9 160.0 157.3 154.3 152.1 30 Electrical machinery 36 8.05 178.4 178.8 179.9 180.1 180.9 182.6 180.0 179.6 175.7 170.7 168.2 172.9 172.5 173.6 173.4 31 Transportation equipment 37 9.27 116.1 121.3 123.7 123.4 119.8 115.4 114.2 110.6 106.1 103.7 96.6 102.0 104.6 106.4 110.2 32 Motor vehicles and parts 371 4.50 122.3 130.7 136.4 137.5 130.5 123.1 120.4 113.8 105.5 100.4 90.4 98.6 106.2 111.5 119.6 33 Aerospace and miscellaneous transportation equipment 372-9 4.77 110.2 112.4 111.8 110.2 109.7 108.2 108.5 107.5 106.8 106.8 102.4 105.3 103.2 101.7 101.2 34 Instruments 38 2.11 170.3 170.0 170.6 171.3 172.1 172.3 169.7 168.6 167.1 166.8 162.2 164.5 163.0 162.9 161.9 35 Miscellaneous manufactures .... 39 1.51 154.7 157.3 157.0 158.8 159.4 158.6 154.2 151.5 151.7 147.9 144.9 144.5 146.8 147.5 146.3 Gross value (billions of 1972 dollars, annual rates) MAJOR MARKET 36 Products, total 507.4' 612.3 616.2 622.2 619.2 621.4 616.5 611.5 605.0 597.6 592.8 577.4 588.1 587.2 584.9 588.9 37 Final 390.91 474.1 476.3 482.4 480.5 481.9 476.4 473.0 470.1 465.2 462.3 448.8 457.1 456.8 455.7 460.1 38 Consumer goods 277.51 318.0 320.0 324.3 322.1 324.0 319.3 317.7 314.3 310.5 307.2 298.9 306.3 307.0 308.0 313.1 39 Equipment 113.41 156.1 156.3 158.1 158.5 157.9 157.1 155.3 155.8 154.7 155.1 149.9 150.8 149.8 147.7 147.0 40 Intermediate 116.61 138.2 139.9 139.8 138.7 139.5 140.1 138.4 134.9 132.4 130.5 128.7 131.1 130.4 129.1 128.8 1. 1972 dollar value. NOTE. Published groupings include some series and subtotals not shown separately. For description and historical data, see Industrial Production—1976 Revision (Board of Governors of the Federal Reserve System: Washington, D.C.), December 1977. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 Domestic Nonfinancial Statistics • June 1982 2.14 HOUSING AND CONSTRUCTION Monthly figures are at seasonally adjusted annual rates except as noted. 1981 1982 T 11998811 Sept. Oct. Nov. Dec. Jan.' Feb.' Mar.' Apr. Private residential real estate activity (thousands of units) NEW UNITS 1 Permits authorized 1,552 1,191 986' 835' 738' 743' 797' 803 792 851 871 2 1-family 981 710 564' 456' 400' 413' 454 450 436 460 444 3 2-or-more-family 571 481 421' 379' 338' 330' 343' 353 356 391 427 4 Started 1.745 1,292 1,084 899 854 860 882 885 945 941 88 1 5 1-family 1.194 852 705 623 507 554 550 592 568 627 564 6 2-or-more-family 551 440 379 276 347 306 332 293 377 314 317 7 Under construction, end of period1 1.140 896 682 770 731 705 689 684 690 687 8 1-family 639 515 382 428 410 397 391 394 402 402 9 2-or-more-family 501 382 301 342 321 309 298 291 289 285 10 Completed 1,855 1,502 1,266 1,202 1,265 1,067 1,114 1,063 921 917 n a. 11 1-family 1,286 957 818 782 725 673 676 640 545 575 12 2-or-more-family 569 545 447 420 540 394 438 423 376 342 13 Mobile homes shipped 277 222 241 232 208 207 206 211 251 252 Merchant builder activity in 1-family units 14 Number sold 709 545 436 335 359 388 456 399 369 372 315 15 Number for sale, end of period1 402 342 278 304 291 282 272 275 277 271 266 Price (thousands of dollars)2 Median 16 Units sold 62.8 64.7 68.8 65.8 69.6 71.2 68.4 66.2 65.8 68.1 72.4 17 Units sold 71.9 76.4 83.1 81.3 82.5 85.3 82.8 78.0 80.9 84.7 85.7 EXISTING UNITS (1-family) 18 Number sold 3,701 2,881 2,350 2,070 1,930 1,900 1,940 1,860 1,950 1,990 1,900 Price of units sold (thous. of dollars)2 19 Median 55.5 62.1 66.1 67.1 66.0 65.9 66.6 66.4 66.9 67.0 67.5 20 Average 64.0 72.7 78.0 79.1 76.6 77.5 78.6 79.8 78.8 79.1 8 D.3 Value of new construction3 (millions of dollars) CONSTRUCTION 21 Total put in place 230,781 230,273 237,035 230,892 230,368 233,026 235,844 232,672 232,948 234,201 232,848 ?? 181,690 174,896 183,502 178,649 179.248 180,602 182,761 181,057 181,397 180,888 182,475 73 Residential 99,032 87,260 85,805 78,503 78.292 78,219 79,779 78,230 76,221 76,847 76,882 74 Nonresidential, total 82,658 87,636 97,697 100,146 100,956 102,383 102,982 102,827 105,176 104,041 105,593 Buildings 75 Industrial 14,953 13,839 16,884 18,344 18,558 18,373 17,736 17,213 17,598 16,436 1166,,998855 76 Commercial 24,919 29,940 33,485 33,412 33,046 34,506 35,921 36,789 37,907 38,990 39,493 71 Other 7,427 8,654 9,377 9,402 9,553 9,193 9,019 9.867 10,113 10,055 9,691 28 Public utilities and other 35,359 35,203 37,951 38,988 39,799 40,311 40,306 38.958 39,558 38,560 39,424 79 Public 49,088 55,371 53,534 52,243 51,120 52,423 53,083 51,616 51,551 53,313 50,373 30 1,648 1,880 1,944 2,065 1,943 1,946 1,909 2,108 1,850 2,223 2,041 31 Highway 11,998 13,784 13,162 12,537 11.515 12,478 11,642 12,600 13,275 14,502 12,103 V Conservation and development 4,586 5,089 5,267 4,910 6,978 4,868 4,908 5,378 5,395 5,121 5,260 33 Other 30,856 34,618 33,161 32,731 30.684 33,131 34,624 31,530 31,031 31,467 30,969 1. Not at annual rates. NOTE. Census Bureau estimates for all series except (a) mobile homes, which 2. Not seasonally adjusted. are private, domestic shipments as reported by the Manufactured Housing Institute 3. Value of new construction data in recent periods may not be strictly comparable and seasonally adjusted by the Census Bureau, and (b) sales and prices of existing with data in prior periods due to changes by the Bureau of the Census in its units, which are published by the National Association of Realtors. All back and estimating techniques. For a description of these changes see Construction Reports current figures are available from originating agency. Permit authorizations are (C-30-76-5), issued by the Bureau in July 1976. those reported to the Census Bureau from 16,000 jurisdictions beginning with 1978. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Prices A51 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data, except as noted 12 months to 3 months (at annual rate) to 1 month to IIInnndddeeexxx llleeevvveeelll AAAppprrr... IIIttteeemmm AA 1199 pp 88 rr 11 .. AA 1199 pp 88 rr 22 .. 1981 1982 1981 1982 ((( 111 111 999 999 888 666 222 777 June Sept. Dec. Mar. Dec. Jan. Feb. Mar. Apr. === 111000 000)))''' CONSUMER PRICES2 1 All items 10.0 6.6 8.1 12.8 5.4 1.0 .4 .3 .2 -.3 .2 284.3 2 Commodities 9.1 3.2 3.2 8.5 3.6 -.8 .3 .1 .2 -.5 -.3 258.9 3 Food 9.6 4.0 2.2 7.7 1.7 3.9 .1 .7 .6 -.4 .3 283.9 4 Commodities less food 8.9 2.9 3.8 9.0 4.3 -2.6 .4 -.1 .0 -.5 -.5 245.0 5 Durable 7.9 6.6 9.7 10.8 1.2 3.5 .3 .2 .4 .2 .6 235.8 6 Nondurable 10.0 -1.2 -1.4 4.6 3.8 -4.9 -.3 .2 -.8 -.7 -2.2 255.0 7 Services 11.3 11.2 14.8 19.2 7.8 3.5 .5 .5 .4 .0 .9 328.4 8 Rent 9.2 7.8 7.7 10.2 9.0 5.9 7 .6 .4 .5 .2 220.1 9 Services less rent 11.7 11.6 15.8 20.4 7.6 3.3 .4 .5 .4 .0 1.0 349.1 Other groupings 10 All items less food 10.1 7.1 9.3 13.9 6.2 .9 .4 .2 .2 -.2 .2 282.9 11 All items less food and energy 9.5 8.8 11.6 15.0 5.6 3.0 .5 .3 .4 .0 0.8 272.2 12 Homeownership 10.3 9.2 16.9 21.5 .3 -2.4 .2 -.1 .4 -.9 1.3 370.6 PRODUCER PRICES 13 Finished goods 10.9 3.1 7.1 3.4 5.2 .3 .3 .4 -.1 -.1 .1 276.9 14 Consumer 11.0 2.3 6.4 2.8 4.0 -.1 .2 .4 -.1 -.3 .0 276.9 15 Foods 9.5 3.1 3.5 1.6 -3.7 6.0 -.1 1.1 .5 -.2 1.6 259.8 16 Excluding foods 11.5 2.0 7.6 3.2 7.2 -2.2 .3 .1 -.3 -.4 -.7 281.7 17 Capital equipment 10.4 6.3 10.0 5.7 9.7 2.1 .6 .4 -.4 .5 .4 277.1 18 Intermediate materials3 10.9 1.9 8.0 5.2 2.8 -1.4 „2 .3 -.3 -.3 -.8 315.3 Crude materials 19 Nonfood 25.1 -4.4 16.1 1.1 -5.6 -18.1 .1 -1.0 -1.9 -2.0 -.2 470.4 20 Food 11.7 -3.5 6.4 -18.2 -25.5 23.3 -2.8 4.4 .7 .2 3.5 254.3 1. Not seasonally adjusted. 3. Excludes intermediate materials for food manufacturing and manufactured 2. Figures for consumer prices are those for all urban consumers. animal feeds. SOURCE. Bureau of Labor Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A52 Domestic Nonfinancial Statistics • June 1982 2.16 GROSS NATIONAL PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data are at seasonally adjusted annual rates. 1981 1982 AAccccoouunntt 11997799 11998800 11998811 Q1 Q2 Q3 Q4 Ql' GROSS NATIONAL PRODUCT 1 Total 2,413.9 2,626.1 2,925.5 2,853.0 2,885.8 2,965.0 2,998.3 2,991.6 By source 2 Personal consumption expenditures 1,510.9 1,672.8 1,857.8 1,810.1 1,829.1 1,883.9 1,908.3 1,945.1 3 Durable goods 212.3 211.9 232.0 238.3 227.3 236.2 226.4 236.5 4 Nondurable goods 602.2 675.7 743.2 726.0 735.3 751.3 760.3 761.6 Services 696.3 785.2 882.6 845.8 866.5 896.4 921.5 946.9 6 Gross private domestic investment 415.8 395.3 450.5 437.1 458.6 463.0 443.3 391.4 7 Fixed investment 398.3 401.2 434.4 432.7 435.3 435.6 434.0 430.7 8 Nonresidential 279.7 296.0 328.9 315.9 324.6 335.1 339.8 337.3 9 Structures 96.3 108.8 125.7 117.2 123.1 128.3 134.3 135.1 10 Producers' durable equipment 183.4 187.1 203.1 198.7 201.5 206.8 205.5 202.2 11 Residential structures 118.6 105.3 105.5 116.7 110.7 100.5 94.2 93.5 12 Nonfarm 113.9 100.3 100.0 111.4 105.4 94.9 88.4 87.9 13 Change in business inventories 17.5 -5.9 16.2 4.5 23.3 27.5 9.4 -39.3 14 Nonfarm 13.4 -4.7 13.8 6.8 21.5 23.1 3.7 -38.1 15 Net exports of goods and services 13.4 23.3 26.0 29.2 20.8 29.3 24.7 28.6 16 Exports 281.3 339.8 367.3 367.4 368.2 368.0 365.6 356.5 17 Imports 267.9 316.5 341.3 338.2 347.5 338.7 341.0 327.9 18 Government purchases of goods and services 473.8 534.7 591.2 576.5 577.4 588.9 622.0 626.5 19 Federal 167.9 198.9 230.2 221.6 219.5 226.4 253.3 254.0 20 State and local 305.9 335.8 361.0 354.9 357.9 362.5 368.7 372.5 By major type of product 2211 Final sales, total 2,396.4 2,632.0 2,909.4 2,848.5 2,862.5 2,937.6 2,989.0 3,030.9 22 Goods 1,055.9 1,130.4 1,272.3 1,247.5 1,257.0 1,298.3 1,286.4 1,258.7 2i Durable 451.2 458.6 506.9 501.4 516.9 525.2 484.2 461.3 24 Nondurable 604.7 671.9 765.4 746.1 740.1 773.0 802.2 797.4 25 Services 1,097.2 1,229.6 1,371.7 1,317.1 1,344.7 1,390.5 1,434.4 1,457.0 26 Structures 260.8 266.0 281.6 288.4 284.1 276.3 277.5 275.9 27 Change in business inventories 17.5 -5.9 16.2 4.5 23.3 27.5 9.4 -39.3 28 Durable goods 11.5 -4.0 7.4 -4.2 18.5 18.6 -3.3 -33.7 29 Nondurable goods 6.0 -1.8 8.8 8.6 4.8 8.9 12.7 -5.6 30 MEMO: Total GNP in 1972 dollars 1,483.0 1,480.7 1,510.3 1,516.4 1,510.4 1,515.8 1,498.4 1,482.2 NATIONAL INCOME 31 Total 1,963.3 2,121.4 2,347.2 2,291.1 2,320.9 2,377.6 2,399.1 2,394.6 32 Compensation of employees 1,460.9 1,596.5 1,771.6 1,722.4 1,752.0 1,790.7 1,821.3 1,844.2 33 Wa^es and salaries 1,235.9 1,343.6 1,482.8 1,442.9 1,467.0 1,498.7 1,522.5 1,538.1 34 Government and government enterprises 235.9 253.6 273.9 267.1 270.5 274.7 283.2 287.1 35 Other 1,000.0 1,090.0 1,208.8 1,175.7 1,196.4 1,224.0 1,239.2 1,251.0 36 Supplement to wages and salaries 225.0 252.9 288.8 279.5 285.1 292.0 298.8 306.1 37 Employer contributions for social insurance 106.4 115.8 134.7 131.5 133.2 135.6 138.4 142.3 38 Other labor income 118.6 137.1 154.1 148.0 151.8 156.3 160.4 163.8 4 3 0 9 Pr B op u r s i i e n t e o s r s s ' a i n n d c o p m ro e f 1 e ssional1 1 10 3 0 1 . . 7 6 1 1 0 3 7 0 . . 2 6 1 1 1 3 2 4 . . 4 8 1 1 3 1 2 3. . 2 1 1 1 3 1 4 2 . . 1 5 1 1 3 1 7 2 . . 1 4 1 11 3 1 5 . . 5 9 1 1 2 1 7 0 . . 7 7 41 Farm1 30.8 23.4 22.4 18.9 21.7 24.7 24.4 17.0 42 Rental income of persons2 30.5 31.8 33.6 32.7 33.3 33.9 34.5 34.8 43 Corporate profits1 196.8 182.7 191.7 203.0 190.3 195.7 177.6 149.9 44 Profits before tax3 255.4 245.5 233.3 257.0 229.0 234.4 212.8 169.8 45 Inventory valuation adjustment -42.6 -45.7 -27.7 -39.2 -24.0 -25.3 -22.3 -10.1 46 Capital consumption adjustment -15.9 -17.2 -13.9 -14.7 -14.7 -13.4 -12.8 -9.7 47 Net interest 143.4 179.8 215.4 200.8 211.0 220.2 229.7 238.0 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.49. 2. With capital consumption adjustment. SOURCE. Survey of Current Business (Department of Commerce). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Income Accounts A53 2.17 PERSONAL INCOME AND SAVING Billions of current dollars; quarterly data are at seasonally adjusted annual rates. Exceptions noted. 1981 1982 AAccccoouunntt 11997799 11998800 11998811 Q1 Q2 Q3 Q4 Qlr PERSONAL INCOME AND SAVING 1 Total personal income 1,943.8 2,160.2 2,404.1 2,319.8 2,368.5 2,441.7 2,486.5 2,511.3 2 Wage and salary disbursements 1,236.1 1,343.7 1,482.7 1,442.9 1,467.0 1,498.5 1,522.5 1,538.3 3 Commodity-producing industries 437.9 465.4 512.7 501.3 508.1 520.2 521.0 520.5 4 Manufacturing 333.4 350.7 387.3 377.4 386.7 393.9 391.0 389.7 5 Distributive industries 303.0 328.9 361.1 351.9 357.8 365.3 369.5 373.6 6 Service industries 259.2 295.7 335.0 322.5 330.5 338.5 348.7 356.9 7 Government and government enterprises 236.1 253.6 273.9 267.1 270.5 274.5 283.3 287.3 8 Other labor income 118.6 137.1 154.1 148.0 151.8 156.3 160.4 163.8 9 Proprietors' income1 131.6 130.6 134.8 132.1 134.1 137.1 135.9 127.7 10 Business and professional1 100.8 107.2 112.4 113.2 112.5 112.4 111.5 110.7 11 Farm1 30.8 23.4 22.4 18.9 21.7 24.7 24.4 17.0 12 Rental income of persons2 30.5 31.8 33.6 32.7 33.3 33.9 34.5 34.8 13 Dividends 48.6 54.4 61.3 58.0 60.2 63.0 64.1 64.7 14 Personal interest income 209.6 256.3 308.5 288.7 300.9 315.7 328.7 339.0 15 Transfer payments 249.4 294.2 333.2 319.6 324.2 342.2 347.0 354.2 16 Old-age survivors, disability, and health insurance benefits 131.8 153.8 180.4 169.8 172.0 188.5 191.2 194.4 17 LESS: Personal contributions for social insurance 80.6 87.9 104.2 102.3 103.1 105.0 106.5 111.2 18 EQUALS: Personal income 1,943.8 2,160.2 2,404.1 2,319.8 2,368.5 2,441.7 2,486.5 2,511.3 19 LESS: Personal tax and nontax payments 302.0 338.5 388.2 372.0 382.9 399.8 398.0 398.3 20 EQUALS: Disposable personal income 1,641.7 1,821.7 2,016.0 1,947.8 1,985.6 2,042.0 2,088.5 2,113.0 21 LESS: Personal outlays 1,555.5 1,720.4 1,908.4 1,858.9 1,879.0 1,935.1 1,960.5 1,997.6 22 EQUALS: Personal saving 86.2 101.3 107.6 88.9 106.6 106.9 128.0 115.4 MEMO: Per capita (1972 dollars) 23 Gross national product 6,588 6,503 6,570 66,,661199 66,,558811 66,,558855 66,,449944 66,,441111 24 Personal consumption expenditures 4,135 4,108 4,171 4,191 4,162 4,184 4,150 4,171 25 Disposable personal income 4,493 4,473 4,526 4,511 4,517 4,535 4,541 4,531 26 Saving rate (percent) 5.2 5.6 5.3 4.6 5.4 5.2 6.1 5.5 GROSS SAVING 27 Gross saving 412.0 401.9 455.5 442.6 465.3 469.4 444.7 400.6 28 Gross private saving 398.9 432.9 480.1 451.1 475.3 486.2 507.7 490.6 86.2 101.3 107.6 88.9 106.6 106.9 128.0 115.4 30 Undistributed corporate profits1 59.1 44.3 50.8 55.7 52.0 52.8 42.9 32.1 31 Corporate inventory valuation adjustment -42.6 -45.7 -27.7 -39.2 -24.0 -25.3 -22.3 -10.1 Capital consumption allowances 32 Corporate 155.4 175.4 197.7 118877..55 194.6 220011..11 220077..77 221111..77 33 Noncorporate 98.2 111.8 123.9 119.0 122.0 125.4 129.1 131.3 34 Wage accruals less disbursements .0 .0 .0 .0 .0 .0 .0 .0 35 Government surplus, or deficit (-), national income and product accounts 11.9 -32.1 -25.7 -9.7 -11.2 -17.9 -64.1 -90.0 36 Federal -14.8 -61.2 -62.4 -46.6 -47.2 -55.7 -100.0 -126.4 37 State and local 26.7 29.1 36.7 36.9 36.1 37.8 35.9 36.4 38 Capital grants received by the United States, net 1.1 1.1 1.1 1.1 1.1 1.1 1.1 .0 39 Gross investment 414.1 401.2 454.7 446.0 458.3 469.6 444.8 396.4 40 Gross private domestic 415.8 395.3 450.5 437.1 458.6 463.0 443.3 391.4 41 Net foreign -1.7 5.9 4.2 8.8 -.2 6.5 1.5 5.0 42 Statistical discrepancy 2.2 -.7 -.8 3.4 -6.9 .2 .2 -4.2 1. With inventory valuation and capital consumption adjustments. SOURCE. Survey of Current Business (Department of Commerce). 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • June 1982 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data are seasonally adjusted except as noted.1 1980 1981 Item credits or debits 1979 1980 1981 Q4 Q1 Q2 Q3 Q4 1 Balance on current account 1,414 3,723 6,578 1,390 3,334 1,212 2,115 -85 2 Not seasonally adjusted 3,244 3,546 2,438 -863 1,457 3 Merchandise trade balance2 -27,346 -25,342 -27,817 -5,570 -4,661 -6,894 -7,026 -9,236 4 Merchandise exports 184,473 223,966 236,300 57,149 60,990 60,369 57,929 57,012 5 Merchandise imports -211,819 -249,308 -264,117 -62,719 -65,651 -67,263 -64,955 -66,248 6 Military transactions, net -1,947 -2,515 -1,943 -715 -568 -698 -87 -590 7 Investment income, net3 33,462 32,762 36,757 8,257 9,083 8,764 9,257 9,650 8 Other service transactions, net 2,839 5,874 6,344 1,762 1,007 1,558 1,819 1,962 9 Remittances, pensions, and other transfers -2,057 -2,397 -2,302 -720 -550 -553 -599 -602 10 U.S. government grants (excluding military) -3,536 -4,659 -4,460 -1,624 -977 -965 -1,249 -1,269 11 Change in U.S. government assets, other than official reserve assets, net (increase, -) -3,767 -5,165 -5,138 -1,094 -1,395 -1,485 -1,282 -976 12 Change in U.S. official reserve assets (increase, -) -1,132 -8,155 -5,175 -4,279 -4,529 -905 -4 262 13 Gold -65 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) - 1,136 -16 -1,823 1,285 -1,441 -23 -225 -134 15 Reserve position in International Monetary Fund -189 -1,667 -2,491 -1,240 -707 -780 -647 -358 16 Foreign currencies 257 -6,472 -861 -4,324 -2,381 -102 868 754 17 Change in U.S. private assets abroad (increase, -)3 -57,739 -71,456 -96,265 -22,622 -16,483 -19,590 -15,423 -44,771 18 Bank-reported claims -26,213 -46,947 -84,462 -13,139 -11,241 -15,627 -15,209 -42,385 19 Nonbank-reported claims -3,026 -2,653 n.a. -2,005 -3,192 2,470 1,451 n.a. 20 U.S. purchase of foreign securities, net -4,552 -3,310 -5,536 -356 -488 1,479 -642 -2,928 21 U.S. direct investments abroad, net3 -23,948 -18,546 -6,995 -7,122 -1,562 -4,954 -1,023 542 22 Change in foreign official assets in the United States (increase, +) -13,757 15,492 5,208 7,712 5,503 -2,779 -5,663 8,147 23 U.S. Treasury securities -22,435 9,683 5,008 6,911 7,242 -2,069 -4,634 4,469 24 Other U.S. government obligations 463 2,187 1,279 587 454 536 545 -256 25 Other U.S. government liabilities4 -133 636 170 205 -112 177 -161 266 26 Other U.S. liabilities reported by U.S. banks 7,213 -159 3,916 -460 -2,910 -2,070 -2,387 3,451 27 Other foreign official assets5 1,135 3,145 2,667 469 829 647 974 217 28 Change in foreign private assets in the United States (increase, +)3 52,703 34,769 69,148 16,157 1,637 15,667 21,512 30,333 29 U.S. bank-reported liabilities 32,607 10,743 41,332 7,737 -3,889 7,916 16,795 20,510 30 U.S. nonbank-reported liabilities 2,065 5,109 n.a. 3,228 -820 -293 273 n.a. 31 Foreign private purchases of U.S. Treasury securities, net 4,820 2,679 2,914 893 1,405 733 -449 1,225 32 Foreign purchases of other U.S. securities, net 1,334 5,384 7,078 2,240 2,454 3,472 759 393 33 Foreign direct investments in the United States, net3 .... 11,877 10,853 18.664 2,059 2,487 3,839 4,134 8,205 34 Allocation of SDRs 1,139 1,152 1,093 0 1,093 0 0 0 35 Discrepancy 21,140 29,640 24,551 2,736 10,840 7,880 -1,255 7,090 36 Owing to seasonal adjustments 2,139 -401 1,161 -2,631 1,875 37 Statistical discrepancy in recorded data before seasonal adjustment 21,140 29,640 24,551 597 11,241 6,719 1,376 5,215 MEMO: Changes in official assets 38 U.S. official reserve assets (increase, -1,132 -8,155 -5,175 -4,279 -4,529 -905 -4 262 39 Foreign official assets in the United States (increase, +) -13,624 14,856 5,038 7,507 5,615 -2,956 -5,502 7,881 40 Change in Organization of Petroleum Exporting Countries official assets in the United States (part of line 22 above) 5,543 12,744 13,419 1,024 5,446 2,676 3,065 2,232 41 Transfers under military grant programs (excluded from lines 4, 6, and 10 above) 305 635 581 211 192 214 132 44 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 and Official Assets A55 3.11 U.S. FOREIGN TRADE Millions of dollars; monthly data are seasonally adjusted. 1981 1982 IItteemm 11997799 11998800 11998811 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 1 EXPORTS of domestic and foreign merchandise excluding grant-aid shipments 181,860 220,626 233,677 19,163 19,153 18,885 18,737 18,704 18,602 17,843 2 GENERAL IMPORTS including merchandise for immediate consumption plus entries into bonded warehouses 209,458 244,871 261,305 23,077 22,508 19,746 22,829 19,090 20,349 17,387 3 Trade balance -27,598 -24,245 -27,628 -3,914 -3,355 -861 -4,092 -387 -1,747 456 NOTE. The data through 1981 in this table are reported by the Bureau of Census not covered in Census statistics, and (b) the exclusion of military sales (which are data on a free-alongside-ship (f.a.s.) value basis—that is, value at the port of export. combined with other military transactions and reported separately in the "service Beginning in 1981, foreign trade of the U.S. Virgin Islands is included in the Census account" in table 3.10, line 6). On the import side, additions are made for gold, basis trade data; this adjustment has been made for all data shown in the table. ship purchases, imports of electricity from Canada and other transactions; military Beginning with 1982 data, the value of imports are on a customs valuation basis. payments are excluded and shown separately as indicated above. The Census basis data differ from merchandise trade data shown in table 3.10, U.S. International Transactions Summary, for reasons of coverage and timing. On SOURCE. FT900 "Summary of U.S. Export and Import Merchandise Trade" the export side, the largest adjustments are: (a) the addition of exports to Canada (U.S. Department of Commerce, Bureau of the Census). 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 1981 1982 TTyyppee 11997788 11997799 11998800 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May 1 Total1 18,650 18,956 26,756 30,248 31,002 30,075 30,098 30,060 29,944 31,552 30,915 2 Gold stock, including Exchange Stabili- 11,150 11,149 11,149 zation Fund1 11,671 11,172 11,160 11,152 11,152 11,151 11,151 11,150 3 Special drawing rights2 3 1,558 2,724 2,610 3,949 4,109 4,095 4,176 4,359 4,306 4,294 4,521 4 Reserve position in International Mone- 5,367 6,022 6,099 tary Fund2 1,047 1,253 2,852 4,736 5,009 5,055 5,237 5,275 5 Foreign currencies4 5 4,374 3,807 10,134 10,411 10,732 9,774 9,534 9,276 9,121 10,087 9,146 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. 3.13 FOREIGN OFFICIAL ASSETS HELD AT FEDERAL RESERVE BANKS Millions of dollars, end of period 1981 1982 AAsssseettss 11997788 11997799 11998800 Nov. Dec. Jan. Feb. Mar. Apr. May 1 Deposits 367 429 411 534 505 333 416 421 966 308 Assets held in custody 2 U.S. Treasury securities' 117,126 95,075 102,417 103,894 104,680 104,631 103,557 103,964 102,346 102,112 3 Earmarked gold2 15,463 15,169 14,965 14,802 14,804 14,802 14,791 14,798 14,788 14,778 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

A56 International Statistics • June 1982 3.14 FOREIGN BRANCHES OF U.S. BANKS Balance Sheet Data Millions of dollars, end of period 1981 1982 AAsssseett aaccccoouunntt 1199778811 11997799 11998800 Sept. Oct. Nov. Dec. Jan. Feb. Mar .P All foreign countries 1 Total, all currencies 306,795 364,409 401,135 450,234 444,654 462,810 462,635 459,913 461,218 463,176 2 Claims on United States 17,340 32,302 28,460 46,369 41,554 44,562 63,435 66,864' 65,918 72,927 3 Parent bank 12,811 25,929 20,202 32,249 26,833 26,540 42,940 46,712 45,128 48,648 4 Other 4,529 6,373 8,258 14,120 14,721 18,022 20,495 20,152' 20,790 24,279 5 Claims on foreigners 278,135 317,330 354,960 384,407 383,463 397,825 379,193 373,108' 375,518 371,045 6 Other branches of parent bank 70,338 79,662 77,019 84,627 83,597 89,269 87,840 91,934 92,414 89,371 7 Banks 103,111 123,420 146,448 159,637 156,833 161,510 150,919 145,538r 146,369 146,976 8 Public borrowers2 23,737 26,097 28,033 29,927 30,211 30,181 28,193 26,632 26,911 26,314 9 Nonbank foreigners 80,949 88,151 103,460 110,216 112,822 116,865 112,241 109,004 109,824 108,384 10 Other assets 11,320 14,777 17,715 19,458 19,637 20,423 20,007 19,941 19,782 19,204 11 Total payable in U.S. dollars 224,940 267,713 291,798 343,067 336,839 348,945 350,564 351,180 353,081 355,019 12 Claims on United States 16,382 31,171 27,191 45,116 40,370 43,271 61,838 65,327 64,363 71,352 13 Parent bank 12,625 25,632 19,896 31,991 26,639 26,347 42,397 46,155 44,535 48,003 14 Other 3,757 5,539 7,295 13,125 13,731 16,924 19,441 19,182' 19,828 23,349 15 Claims on foreigners 203,498 229,120 255,391 286,367 284,590 293,690 277,059 273,653' 276,749 271,915 16 Other branches of parent bank 55,408 61,525 58,541 66,279 65,859 69,938 69,382 74,895 75,868 72,884 17 Banks 78,686 96,261 117,342 131,524 127,944 131,576 122,287 117,147' 118,239 117,286 18 Public borrowers2 19,567 21,629 23,491 24.709 25,199 25,121 22,859 21,244 21,543 20,631 19 Nonbank foreigners 49,837 49,705 56,017 63.855 65,588 67,055 62,531 60,367 61,099 61,114 20 Other assets 5,060 7,422 9,216 11,584 11,879 11,984 11,667 12,190 11,969 11,752 United Kingdom 21 Total, all currencies 106,593 130,873 144,717 154,0% 153,615 161,531 157,229 157,892 162,351 161,101 22 Claims on United States 5,370 11,117 7,509 11,167 9,668 9,315 11,823 12,045 13,458 13,554 23 Parent bank 4,448 9,338 5,275 7,842 6,351 5,162 7,885 8,374 9,618 9,549 24 Other 922 1,779 2,234 3,325 3,317 4,153 3,938 3,671 3,840 4,005 25 Claims on foreigners 98,137 115,123 131,142 137,056 137,879 145,889 138,888 139,843 142,623 141,711 26 Other branches of parent bank 27,830 34,291 34,760 39,117 38,799 41,476 41,367 43,358 43,361 43,698 27 Banks 45,013 51,343 58,741 58,986 59,307 63,044 56,315 56,164 57,975 57,002 28 Public borrowers2 4,522 4,919 6,688 7,112 7,305 7,463 7,490 7,249 7,370 7,548 29 Nonbank foreigners 20,772 24,570 30,953 31,841 32,468 33,906 33,716 33,072 33,917 33,463 30 Other assets 3,086 4,633 6,066 5,873 6,068 6,327 6,518 6,004 6,270 5,836 31 Total payable in U.S. dollars 75,860 94,287 99,699 113,014 112,064 117,454 115,188 116,870 121,436 120,050 32 Claims on United States 5,113 10,746 7,116 10,703 9,201 8,811 11,249 11,574 12,966 13,053 33 Parent bank 4,386 9,297 5,229 7,779 6,299 5,110 7,724 8,234 9,456 9,396 34 Other 727 1,449 1,887 2,924 2,902 3,701 3,525 3,340 3,510 3,657 35 Claims on foreigners 69,416 81,294 89,723 98,611 98,934 104,741 99,847 101,337 104,286 102,919 36 Other branches of parent bank 22,838 28,928 28,268 32,845 32,698 34,905 35,436 37,739 38,122 38,556 37 Banks 31,482 36,760 42,073 43,605 43,345 46,463 40,703 40,610 42,453 40,702 38 Public borrowers2 3,317 3,319 4,911 5,281 5,485 5,500 5,595 5,423 5,467 5,367 39 Nonbank foreigners 11,779 12,287 14,471 16,880 17,406 17,873 18,113 17,565 18,244 18,294 40 Other assets 1,331 2,247 2,860 3,700 3,929 3,902 4,092 3,959 4,184 4,078 Bahamas and Caymans 41 Total, all currencies 91,735 108,977 123,837 147,904 142,687 148,557 149,051 146,516 142,853 143,710 42 Claims on United States 9,635 19,124 17,751 29,896 26,741 29,909 46,246 49,607' 47,712 53,996 43 Parent bank 6,429 15,196 12,631 20,372 16,717 17,665 31,323 34,849 32,262 34,884 44 Other 3,206 3,928 5,120 9,524 10,024 12,244 14,923 14,758' 15,450 19,112 45 Claims on foreigners 79,774 86,718 101,926 113,048 110,781 113,486 98,302 92,509' 90,753 85,403 46 Other branches of parent bank 12,904 9,689 13,342 13,174 13,066 13,972 12,951 15,101 15,732 12,035 47 Banks 33,677 43,189 54,861 62,946 60,220 61,337 55,333 50,726' 48,970 47,820 48 Public borrowers2 11,514 12,905 12,577 12,431 12,637 12,741 10,006 8,709 8,580 7,980 49 Nonbank foreigners 21,679 20,935 21,146 24,497 24,858 25,436 20,012 17,973 17,471 17,568 50 Other assets 2,326 3,135 4,160 4,960 5,165 5,162 4,503 4,400 4,388 4,311 51 Total payable in U.S. dollars 85,417 102,368 117,654 142,053 136,854 142,632 143,686 141,379 137,817 138,608 1. In May 1978 the exemption level for branches required to report was increased, 2. In May 1978 a broader category of claims on foreign public borrowers, inwhich reduced the number of reporting branches. eluding corporations that are majority owned by foreign governments, replaced the previous, more narrowly defined claims on foreign official institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Overseas Branches A57 3.14 Continued 1981 1982 T " UT. Sept. Oct. Nov. Dec. Jan. Feb. Mar.'' All foreign countries 52 Total, all currencies 306,795 364,409 401,135 450,234 444,654 462,810 462,635 459,913 461,218 463,176 53 To United States 58,012 66,689 91,079 124,096 120,039 128,084 137.686 144.002 145,091 149.996 54 Parent bank 28,654 24,533 39,286 48,592 45,909 49,385 56,144 55.963 55,092 58,439 55 Other banks in United States 12,169 13,968 14,473 17,657 16,464 16,663 19,319 19,839r 22,613 24,404 56 Nonbanks 17,189 28,188 37,275 57,847 57,666 62,036 62,223 68,200' 67,386 67,153 57 To foreigners 238,912 283,510 295,411 306,785 305.040 316.232 305,643 296,364 296,634 293,705 58 Other branches of parent bank 67.496 77,640 75,773 83,336 82,038 87,831 86,423 85,800 84,679 85,864 59 Banks 97,711 122,922 132,116 127,794 128,536 132,111 124.889 118,504 118,982 117,095 60 Official institutions 31,936 35,668 32,473 28,715 27.685 24,696 25,997 25,126 24,626 23,008 61 Nonbank foreigners 41.769 47,280 55,049 66,940 66,781 71,594 68,334 66,934 68,347 67,738 62 Other liabilities 9,871 14,210 14,690 19,353 19,575 18,494 19,306 19,547 19,493 19,475 63 Total payable in U.S. dollars 230,810 273,857 303,281 355,030 349,602 360,971 364,228 364,063 366,986 368,992 64 To United States 55,811 64,530 88,157 121,130 117,362 125,121 134,582 141,038 142,186 146,935 65 Parent bank 27,519 23,403 37,528 46,766 44.170 47,456 54,252 53,932' 53,150 56,427 66 Other banks in United States 11,915 13,771 14,203 17,479 16,313 16,564 19,005 19,712' 22,382 24,163 67 Nonbanks 16.377 27,356 36,426 56,885 56,879 61.101 61.325 67,394' 66,654 66,345 68 To foreigners 169,927 201,514 206.883 221,090 219.818 224,610 217,487 211,042 213,349 210,611 69 Other branches of parent bank 53,396 60,551 58,172 66.256 65,160 69,561 69.189 69,305 68,505 69,780 70 Banks 63,000 80,691 87,497 84,670 84,552 84,789 79.590 74,283 76,142 73,176 71 Official institutions 26,404 29,048 24,697 22.836 21.948 18,911 20,288 19,939 19,323 18,120 72 Nonbank foreigners 27,127 31,224 36,517 47.328 48.158 51,349 48.420 47.515 49,379 49.535 73 Other liabilities 5,072 7.813 8,241 12,810 12.422 11,240 12,159 11.983 11,451 11,446 United Kingdom 74 Total, all currencies 106,593 130,873 144,717 154,096 153,615 161,531 157,229 157,892 162,351 161,101 75 To United States 9,730 20,986 21,785 34.143 32,960 36,316 38,022 40,740 43,185 41,876 76 Parent bank 1,887 3,104 4,225 5,370 3,542 4,045 5,444 6,385 6,592 6,078 77 Other banks in United States 4,189 7,693 5,716 6.396 6,054 6,652 7,502 7,313 8,973 8,607 78 Nonbanks 3,654 10,189 11,844 22.377 23,364 25,619 25,076 27,042 27,620 27,191 79 To foreigners 93,202 104,032 117,438 113,862 114,415 118.401 112,255 110,064 111,590 111,497 80 Other branches of parent bank 12,786 12,567 15,384 15,121 15,544 16,090 16,545 16,298 16,719 17,480 81 Banks 39,917 47.620 56,262 51,830 53,634 56.239 51,336 49,622 49,937 49,616 82 Official institutions 20,963 24,202 21,412 18,687 17.442 15,089 16,517 16.110 15,965 14,608 83 Nonbank foreigners 19,536 19.643 24,380 28,224 27.795 30.983 27,857 28,034 28,969 29,793 84 Other liabilities 3,661 5,855 5,494 6.091 6,240 6,814 6,952 7,088 7,576 7,728 85 Total payable in U.S. dollars 77,030 95,449 103,440 117,920 117,346 122,362 120,277 121,407 127,029 125,989 86 To United States 9,328 20.552 21,080 33,464 32,408 35,706 37,325 40,248 42,646 41,280 87 Parent bank 1,836 3,054 4,078 5,309 3.484 3,956 5,343 6,268 6,497 5.976 88 Other banks in United States 4,101 7,651 5,626 6,317 5.976 6,611 7,249 7.289 8,884 8,489 89 Nonbanks 3,391 9,847 11,376 21,838 22,948 25.139 24,733 26.691 27,265 26,815 90 To foreigners 66,216 72,397 79,636 80,638 81.260 82,766 79,041 77,491 80.744 81.060 91 Other branches of parent bank 9,635 8,446 10,474 10.747 11,121 11,457 12,055 11,928 12,417 13,365 92 Banks 25,287 29,424 35,388 33,010 34,312 35,141 32,298 30,995 32,249 32,090 93 Official institutions 17,091 20.192 17,024 15,514 14.415 12,133 13,612 13.497 13,418 12,196 94 Nonbank foreigners 14,203 14.335 16,750 21,367 21,412 24,035 21,076 21,071 22,660 23,409 95 Other liabilities 1,486 2,500 2,724 3,818 3.678 3,890 3.911 3,668 3,639 3,649 Bahamas and Caymans 96 Total, all currencies 91,735 108,977 123,837 147,904 142,687 148,557 149,051 146,516 142,853 143,710 97 To United States 39,431 37,719 59,666 77,533 75.991 80.161 85,704 88.967 87,364 91,673 98 Parent bank 20,482 15,267 28,181 33,282 33,387 36,066 39,250 37,777' 36,683 39,146 99 Other banks in United States 6,073 5,204 7,379 9,964 9,349 8.971 10,620 11,185' 12,176 14,267 100 Nonbanks 12,876 17,248 24,106 34,287 33,255 35,124 35,834 40,005 38,505 38,260 101 To foreigners 50,447 68,598 61,218 66,627 62,795 64.462 60,012 54,491 52,398 49,057 102 Other branches of parent bank 16,094 20,875 17,040 22.393 20,521 23,307 20,641 20.721 19,814 18,614 103 Banks 23,104 33,631 29,895 27.983 25,396 24,712 23,202 18,590 18,252 16,428 104 Official institutions 4,208 4,866 4,361 4,028 4,078 3,381 3,498 3.149 2,505 2,607 105 Nonbank foreigners 7,041 9,226 9,922 12,223 12,800 13,062 12,671 12,031 11,827 11,408 106 Other liabilities 1,857 2,660 2,953 3.744 3.901 3.934 3,335 3.058 3,091 2,980 107 Total payable in U.S. dollars 87,014 103,460 119,657 143,507 138,094 144,034 145,227 142,728 139,247 139,971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • June 1982 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1981 1982 IItteemm 11997799 11998800 Oct. Nov. Dec. Jan Feb. Mar.P Apr.P 1 Total1 114499,,669977 116644,,557788 115599,,779955 116644,,554455 116699,,443366 116677,,995599 116666,,116688 116666,,771144 116644,,998811 By type 2 Liabilities reported by banks in the United States2 3300,,554400 3300,,338811 2200,,992288 2233,,443366 2266,,330066 2244,,009999 2244,,667722 2255,,001111 2255,,776600 3 U.S. Treasury bills and certificates3 4477,,666666 5566,,224433 4488,,886677 4499,,664444 5522,,338899 5522,,330066 4488,,117744 4477,,004488 4433,,885500 U.S. Treasury bonds and notes 4 Marketable 3377,,559900 4411,,445555 5511,,994400 5533,,993377 5533,,115500 5533,,999922 5566,,333333 5577,,664444 5588,,447711 5 Nonmarketable4 1177,,338877 1144,,665544 1122,,119911 1111,,779911 1111,,779911 1111,,779911 1111,,229911 1111,,229911 1111,,005500 6 U.S. securities other than U.S. Treasury securities5 1166,,551144 2211,,884455 2255,,886699 2255,,773377 2255,,880000 2255,,777711 2255,,669988 2255,,772200 2255,,885500 By area 7 Western Europe1 8855,,663333 8811,,559922 6611,,008866 6633,,110077 6655,,221188 6633,,004488 6622,,003344 6600,,332244 5577,,227777 8 Canada 11,,889988 11,,556622 11..007733 22,,224488 22,,440033 22,,336699 11,,666699 11,,664477 11,,772222 9 Latin America and Caribbean 66,,229911 55,,668888 55,,008899 55,,005511 66,,993344 55,,992233 66,,228833 66,,556622 66,,776611 10 Asia 5522,,997788 7700,,778844 8899,,118877 9911,,116611 9911,,779900 9944,,113377 9933,,555599 9955,,224444 9944,,779999 11 Africa 22,,441122 44,,112233 22,,114499 11,,779922 11,,884499 11,,664499 11,,447744 11,,333377 11,,882233 12 Other countries6 448855 882299 11,,221122 11,,118866 11,,224422 883333 11,,114499 11,,660000 22,,559999 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. 3.16 LIABILITIES TO AND CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in Foreign Currencies Millions of dollars, end of period 1981 1982 IItteemm 11997788 11997799 11998800 June Sept. Dec. Mar.P 1 Banks' own liabilities 2,406 1,918 3,748 3,031 2,878 3,740r 4,391 2 Banks' own claims1 3,671 2,419 4,206 3,699 4,078 5,173r 5,788 3 Deposits 1,795 994 2,507 2,050 2,409 3,403r 3,979 4 Other claims 1,876 1,425 1,699 1,649 1,669 1,770' 1,810 5 Claims of banks' domestic customers2 358 580 962 347 248 971r 944 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 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States Payable in U.S. dollars Millions of dollars, end of period 1981 1982 HHoollddeerr aanndd ttyyppee ooff lliiaabbiilliittyy 11997788 11997799 11998800 Oct. Nov. Dec. Jan. Feb. Mar. Apr.P 1 All foreigners 166,842 187,521 205,297 199,272 209,024 242,533 250,432 253,583' 260,882 266,985 2 Banks' own liabilities 78,661 117,196 124,791 124,454 133,308 162,433 170,972 178,882' 187,247 195,704 3 Demand deposits 19,218 23,303 23,462 19,072 21,127 19,677 18,334 17,808' 16,506 19,483 4 Time deposits1 12,427 13,623 15,076 17,647 18,101 29,381 31,161 36,273' 43,171 48,073 5 Other2 9,705 16,453 17,583 11,225 14,129 17,371 16.451 16,963 19,270 18,524 6 Own foreign offices3 37,311 63,817 68,670 76,511 79,951 96,003 105,026 107,838' 108,300 109,624 7 Banks' custody liabilities4 88,181 70,325 80,506 74,819 75,717 80,100 79,460 74,701 73,635 71,281 8 U.S. Treasury bills and certificates5 68,202 48,573 57,595 51,281 52,005 55,312 55,131 51,142r 50,152 47,353 9 Other negotiable and readily transferable instruments6 17,472 19,396 20,079 18,257 18,269 18,819 18,842 18,718r 18,907 19,250 10 Other 2,507 2,356 2,832 5.281 5,442 5,970 5,487 4,842 4,576 4,679 11 Nonmonetary international and regional organizations7 2,607 2,356 2,344 1,981 2,317 2,721 2,148 2,091 2,049 2,033 12 Banks' own liabilities 906 714 444 303 555 638 373 298 450 593 13 Demand deposits 330 260 146 185 388 262 130 135 209 149 14 Time deposits1 84 151 85 58 74 58 86 76 143 276 15 Other2 492 303 212 60 93 318 156 87 96 168 16 Banks' custody liabilities4 1,701 1,643 1,900 1,678 1,762 2,083 1,775 1,792 1,599 1,439 17 U.S. Treasury bills and certificates 201 102 254 184 142 541 217 277 109 142 18 Other negotiable and readily transferable Instruments6 1,499 1,538 1,646 1,494 1,621 1,542 1,558 1,515 1,490 1,297 19 Other 1 2 0 0 0 0 0 0 0 0 20 Official institutions8 90,742 78,206 86,624 69,796 73,080 78,696 76,405 72,846 72,059 69,611 21 Banks' own liabilities 12,165 18,292 17,826 11,869 14,214 16,672 14,626 14,919 15,286 16,602 22 Demand deposits 3,390 4,671 3,771 2,668 2,459 2,612 2,404 2,385 2,277 3,240 23 Time deposits' 2,560 3,050 3,612 1,692 1,910 4,192 3,684 4,236 4,866 5,344 24 Other2 6,215 10,571 10,443 7,509 9,846 9,868 8,538 8,297 .'8,143 8,017 25 Banks' custody liabilities4 78,577 59,914 68,798 57,927 58,866 62,024 61,778 57,927 56,773 53,009 26 U.S. Treasury bills and certificates5 67,415 47,666 56,243 48,867 49,644 52,389 52,306 48,174' 47,048 43,850 27 Other negotiable and readily transferable instruments5 10,992 12,196 12,501 9,013 9,171 9,587 9,445 9,717r 9,685 8,974 28 Other 170 52 54 46 51 47 27 37' 40 185 29 Banks* 57,423 88,316 96,415 103,348 109,204 135,167 145,577 150,537 r 157,615 162,484 30 Banks' own liabilities 52,626 83,299 90,456 92,786 98,369 123,452 133,691 139,787' 146,413 149,746 31 Unaffiliated foreign banks 15,315 19,482 21,786 16,275 18,418 27,449 28,664 31,948 38,116 40,121 32 Demand deposits 11,257 13,285 14,188 11,346 12,908 11,614 10,893 10,444 9,267 11,219 33 Time deposits1 1,429 1,667 1,703 1,631 1,837 9,169 10,472 13,400 18,316 19,052 34 Other2 2,629 4,530 5,895 3,298 3,673 6,666 7,299 8,104 10,534 9,849 35 Own foreign offices3 37,311 63,817 68,670 76,511 79,951 96,003 105,026 107,838' 108,297 109,624 36 Banks' custody liabilities4 4,797 5,017 5,959 10,562 10,835 11,715 11,886 10,751 11,202 12,738 37 U.S. Treasury bills and certificates 300 422 623 1,574 1,584 1,683 1,853 1,876 2,213 2,592 38 Other negotiable and readily transferable instruments6 2,425 2,415 2,748 4,091 4,169 4,421 4,858 4,405 4,734 5,986 39 Other 2,072 2,179 2,588 4,897 5,082 5,611 5,176 4,470 4,255 4,160 40 Other foreigners 16,070 18,642 19,914 24,148 24,424 25,949 26,303 28,109' 29,158 32,858 41 Banks' own liabilities 12,964 14,891 16,065 19,496 20,170 21,671 22,282 23,878' 25,097 28,763 42 Demand deposits 4,242 5,087 5,356 4,873 5,373 5,189 4,906 4,843' 4,754 4,874 43 Time deposits 8,353 8,755 9,676 14,266 14,280 15,963 16,918 18,561' 19,846 23,401 44 Other2 368 1,048 1,033 358 517 520 458 474 497 489 45 Banks' custody liabilities4 3,106 3,751 3,849 4,652 4,253 4,278 4,021 4,231 4,061 4,095 46 U.S. Treasury bills and certificates 285 382 474 656 635 698 755 815 782 769 47 Other negotiable and readily transferable instruments6 2,557 3,247 3,185 3,659 3,309 3,268 2,981 3,081 2,998 2,992 48 Other 264 123 190 337 309 312 284 335 281 334 49 MEMO: Negotiable time certificates of deposit in custody for foreigners 11,007 10,984 10,745 9,424 9,985 10,547 10,470 10,916 11,215 11,460 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 • June 1982 3.17 Continued 1981 1982 Area and country 11997788 11997799 11998800 Oct. Nov. Dec.A Jan. Feb. Mar. 1 Total 166,842 187,521 205,297 199,272 209,024 242,533 250,432 253,583' 260,882 2 Foreign countries 164,235 185,164 202,953 197,292 206,708 239,812 248,284 251,492' 258,832 3 Europe 85,172 90,952 90,897 77,652 82,302 90,622 89,708 91,549' 93,482 4 Austria 513 413 523 583 595 587 719 647 530 5 Belgium-Luxembourg 2,550 2,375 4,019 3,644 3,989 4,117 3,954 3.252 3,004 6 Denmark 1,946 1,092 497 232 306 333 512 524 514 7 Finland 346 398 455 187 196 296 157 292 273 8 France 9,214 10,433 12,125 7,125 7,385 8,486 8,078 8,042 7,792 9 Germany 17.283 12,935 9,973 6,555 7,211 7,665 6,953 6,668 7,695 10 Greece 826 635 670 496 428 463 469 535 472 11 Italy 7,739 7,782 7,572 5,677 5,656 7,290 7,104 6,495 4,300 12 Netherlands 2,402 2,337 2,441 2,173 2,351 2,773 2,808 2,926 3,111 13 Norway 1,271 1,267 1,344 1,449 1,642 1,457 1,245 1,129 1,518 14 Portugal 330 557 374 424 358 354 301 275 272 15 Spain 870 1,259 1,500 975 954 916 1,024 946 1,136 16 Sweden 3,121 2,005 1,737 1,609 1,508 1,545 1,274 1,480 1,358 17 Switzerland 18,225 17,954 16,689 17,114 18,937 18,878 18,927 18,590 19,379 18 Turkey 157 120 242 252 197 518 336 216 283 19 United Kingdom 14,272 24,700 22,680 23,985 2244,,225588 28,230 30,581 33,773r 35,124 20 Yugoslavia 254 266 681 265 338800 375 215 219 223 21 Other Western Europe1 3,440 4,070 6,939 4,472 5,394 5,798 4,710 5,204 6,036 22 U.S.S.R 82 52 68 42 72 49 69 52 44 23 Other Eastern Europe2 330 302 370 396 486 493 271 284 418 24 Canada 6,969 7,379 10,031 8,934 10,091 10,256 11,572 10,999 10,780 25 Latin America and Caribbean 31,638 49,686 53,170 59,896 62,011 84,504 92,203 94,411' 97,850 26 Argentina 1,484 1,582 2,132 1,929 2,012 2,445 2,879 2,897 3,036 27 Bahamas 6,752 15,255 16,381 21,325 23,625 34,380 43,522 43,589 44,649 28 Bermuda 428 430 670 721 624 765 680 855 1,113 29 Brazil 1,125 1,005 1,216 1,265 1,285 1,548 1,608 1,803 1,339 30 British West Indies 5,974 11,138 12,766 10,472 9,524 17,692 17,868 18,783 18,774 31 Chile 398 468 460 538 505 664 771 815 951 32 Colombia 1,756 2,617 3,077 2,759 2,776 2,993 2,861 2,924 2,654 33 Cuba 13 13 6 6 7 9 7 10 7 3 3 3 4 6 5 J E G a c u m u a a a te d ic m o a r 3 a la3 4 32 1 5 2 6 2 4 4 1 2 7 4 5 6 3 3 7 9 6 1 7 7 4 4 1 0 1 4 3 9 7 4 5 4 9 1 4 6 6 4 4 7 3 8 9 4 7 4 3 1 8 5 2 5 5 0 3 5 1 1 7 0 9 0 0 5 5 1 1 9 2 3 0 9 37 Mexico 3,467 4,185 4,547 5,902 6,047 7,163 6,668 7,246 7,578 38 Netherlands Antilles 308 499 413 2,771 2,896 3,073 3,042 3,135 3,434 39 Panama 2,967 4,483 4,718 4,599 4,904 4,852 3,478 3,338 4,190 40 Peru 363 383 403 379 473 694 594 531 532 41 Uruguay 231 202 254 249 266 367 481 478' 323 42 Venezuela 3,821 4,192 3,170 4,044 3,971 4,245 4,557 4,575' 5,113 43 Other Latin America and Caribbean.. 1,760 2,318 2,123 1,969 2,041 2,612 2,227 2,443 2,924 44 Asia 36,492 33,005 42,420 46,851 48,632 49,810 50,658 50,290 52,547 China 45 Mainland 67 49 49 85 200 158 183 215 257 46 Taiwan 502 1,393 1,662 2,189 2,147 2,082 2,227 2.253 2,213 47 Hong Kong 1,256 1,672 2,548 4,158 4,090 3,950 3,946 4,302 4,190 48 India 790 527 416 433 514 385 512 414 435 49 Indonesia 449 504 730 1,269 985 640 1,230 1,241 1,127 50 Israel 688 707 883 418 475 589 546 507 449 51 Japan 21,927 8,907 16,281 20,204 19,988 20,559 20,051 20,664 21,901 52 Korea 795 993 1,528 1,291 1,322 2,013 2,146 2,162 2,138 53 Philippines 644 795 919 691 736 876 757 739 671 54 Thailand 427 277 464 274 409 534 369 494 340 55 Middle-East oil-exporting countries4.. 7,534 15,300 14,453 12,196 13,603 13,172 13,623 13,564 14,799 56 Other Asia 1,414 1,879 2,487 3,643 4,163 4,852 5,068 3,735 4,028 57 Africa 2,886 3,239 5,187 2,535 2,381 3,201 3,065 2,814 2,398 58 Egypt 404 475 485 343 328 360 571 339 297 59 Morocco 32 33 33 28 37 32 36 35 36 60 South Africa 168 184 288 282 202 420 252 368 330 61 Zaire 43 110 57 44 56 134 33 40 69 62 Oil-exporting countries5 1,525 1,635 3,540 1,165 830 1,395 1,207 1,112 627 63 Other Africa 715 804 783 672 929 860 966 920 1,039 64 Other countries 1,076 904 1,247 1,423 1,291 1,419 1,078 1,430 1,775 65 Australia 838 684 950 1,212 1,065 1,223 853 1,204 1,550 66 All other 239 220 297 211 226 196 225 226 225 67 Nonmonetary international and regional organizations 2,607 2,356 2,344 1,981 2,317 2,721 2,148 2,091 2,049 68 International 1,485 1,238 1,157 945 1,128 1,661 1,072 1,082 1,081 6 7 9 0 L O a th ti e n r A re m g e io ri n c a a l n 6 regional 3 8 1 0 4 8 3 8 1 0 3 6 2 8 9 9 6 0 3 7 1 2 2 4 3 7 9 9 1 7 3 7 5 1 0 0 1,05 1 9 7 3 7 0 0 3 6 3 6 3 3 5 4 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. ^ Liabilities and claims of banks in the United States were increased, beginning 3. Included in "Other Latin America and Caribbean'' through March 1978. in December 1981, by the shift from foreign branches to International Banking 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and Facilities in the United States of liabilities to, and claims on, foreign residents. 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

Bank-Reported Data A61 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States Payable in U.S. Dollars Millions of dollars, end of period 1981 1982 AArreeaa aanndd ccoouunnttrryy 11997788 11997799 11998800 Oct. Nov. Dec.A Jan. Feb. Mar. Apr .P 1 Total 115,545 133,943 172,592 197,584 208,754 250,136 255,456 264,239' 276,123 288,127 2 Foreign countries 115,488 133,906 172,514 197,540 208,713 250,080 255,405 264,192' 276,066 288,084 3 Europe 24,201 28,388 32,108 34,678 39,637 48,711 51,584 53,089' 56,862 59,399 4 Austria 140 284 236 138 179 127 198 172 130 244 5 Belgium-Luxembourg 1,200 1,339 1,621 1,761 2,025 2,832 2,788 3,259 3,778 3,885 6 Denmark 254 147 127 187 208 186 226 253 285 266 7 Finland 305 202 460 397 528 549 555 573 574 522 8 France 3,735 3,322 2,958 2,563 3,261 4,069 4,682 4,928' 5,572 5,037 9 Germany 845 1,179 948 841 979 936 1,084 874 1,123 1,469 in Greece 164 154 256 235 255 333 378 321' 325 282 11 Italy 1,523 1,631 3,364 4,322 4,559 5,186 5,461 5,604' 5,270 5,109 12 Netherlands 677 514 575 567 570 685 729 808 956 750 13 Norway 299 276 227 230 281 384 384 437 447 465 14 Portugal 171 330 331 353 390 529 584 666 770 816 15 Spain 1,120 1,051 993 1,627 1,693 2,100 2,171 2,505 2,622 2,499 16 Sweden 537 542 783 871 1,339 1,206 1,329 1,504 1,550 1,452 17 Switzerland 1,283 1,165 1,446 1,475 1,963 2,211 1,845 2,001' 1,707 1,571 18 Turkey 300 149 145 153 144 421 464 522 496 529 19 United Kingdom 10,147 13,795 14,917 16,047 18,204 23,431 24,986 25,152' 27,784 30,823 20 Yugoslavia 363 611 853 954 1,016 1,224 1,213 1,243 1,200 1,240 21 Other Western Europe1 122 175 179 148 197 209 235 192 308 282 2.2 U.S.S.R 360 268 281 203 248 367 455 262 218 417 23 Other Eastern Europe2 657 1,254 1,410 1,605 1,596 1,725 1,816 1,813' 1,750 1,762 24 Canada 5,152 4,143 4,810 7,456 7,079 9,041 9,478 9,830' 10,913 11,822 25 Latin America and Caribbean 57,565 67,993 92,992 108,289 113,073 137,718 143,098 147,505' 152,196 158,662 26 Argentina 2,281 4,389 5,689 5,887 6,044 7,506 8,704 8,826 8,737 11,024 27 Bahamas 21,555 18,918 29,419 36,921 39,438 43,351 44,739 45,636' 47,468 47,660 28 Bermuda 184 496 218 335 255 326 481 449 420 575 29 Brazil 6,251 7,713 10,496 10,374 10,823 16,874 17,379 17,846' 18,723 19,589 30 British West Indies 9,694 9,818 15,663 17,262 17,890 21,579 21,021 21,949' 22,922 22,348 31 Chile 970 1,441 1,951 2,567 2,643 3,682 4,169 4,370 4,449 4,737 32 Colombia 1,012 1,614 1,752 1,529 1,598 2,018 2,112 2,067 1,996 2,157 33 Cuba 0 4 3 4 3 3 7 9 3 137 34 Ecuador 705 1,025 1,190 1,282 1,328 1,531 1,723 1,752 1,827 1,961 35 Guatemala3 94 134 137 127 123 124 119 119 106 118 36 Jamaica3 40 47 36 40 45 62 177 115 165 159 37 Mexico 5,479 9,099 12,595 17,153 18,505 22,358 23,098 24,238' 25,174 26,363 38 Netherlands Antilles 273 248 821 933 951 1,068 950 1,131 909 896 39 Panama 3,098 6,041 4,974 5,798 5,655 6,719 6,918 7,272' 7,312 8,015 40 Peru 918 652 890 796 705 1,213 1,432 1,432 1,513 1,653 41 Uruguay 52 105 137 166 148 157 267 240 230 319 42 Venezuela 3,474 4,657 5,438 5,273 5,129 7,046 7,307 7,704 7,997 8,646 43 Other Latin America and Caribbean 1,485 1,593 1,583 1,843 1,790 2,102 2,494 2,349' 2,245 2,306 44 Asia 25,362 30,730 39,078 43,263 45,008 49,690 45,960 48,165 50,093 51,968 China 45 Mainland 4 35 195 148 199 107 85 65' 84 112 46 Taiwan 1,499 1,821 2,469 2,349 2,262 2,461 2,643 2,215 2,300 2,268 47 Hong Kong 1,479 1,804 2,247 3,786 3,923 4,115 4,091 4,287 5,440 5,084 48 India 54 92 142 176 179 134 148 188 212 196 49 Indonesia 143 131 245 267 329 346 325 330 356 308 50 Israel 888 990 1,172 1,200 1,325 1,561 1,318 1,467 1,239 1,164 51 Japan 12,646 16,911 21,361 22,790 23,785 26,682 24,109 26,081 25,996 27,379 52 Korea 2,282 3,793 5,697 6,632 6,733 7,311 6,567 6,272 6,549 6,984 53 Philippines 680 737 989 1,448 1,621 1,817 1,766 1,989 2,270 2,294 54 Thailand 758 933 876 559 546 564 527 559 513 566 55 Middle East oil-exporting countries4 3,125 1,548 1,432 1,381 1,569 1,597 1,613 1,981' 1,997 2,397 56 Other Asia 1,804 1,934 2,252 2,526 2,537 2,996 2,767 2,730 3,138 3,213 57 Africa 2,221 1,797 2,377 2,796 2,803 3,546 3,822 4,019 4,222 4,420 58 Egypt 107 114 151 147 137 238 259 293 327 347 59 Morocco 82 103 223 269 243 284 273 273 294 312 60 South Africa 860 445 370 848 904 1,011 948 1,249 11,,441177 1,344 61 Zaire 164 144 94 102 100 112 98 93 8899 101 62 Oil-exporting countries5 452 391 805 534 531 657 786 593 636 727 63 Other 556 600 734 896 888 1,244 1,458 1,518 1,459 1,589 64 Other countries 988 855 1,150 1,059 1,114 1,374 1,463 1,583 1,780 1,812 65 Australia 877 673 859 962 989 1,197 1,280 1,385 1,504 1,569 66 All other 111 182 290 97 125 177 183 198 276 243 67 Nonmonetary international and regional organizations6 56 36 78 43 40 56 51 47 57 43 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 A Liabilities and claims of banks in the United States were increased, beginning United Arab Emirates (Trucial States). in December 1981, by the shift from foreign branches to International Banking Facilities in the United States of liabilities to, and claims on, foreign residents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • June 1982 3.19 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 1982 TTyyppee ooff ccllaaiimm 11997788 11997799 11998800 Oct. Nov. Dec. A Jan. Feb. Mar. Apr.P 1 Total 111111122222226666666,,,,,,,777777788888887777777 111111155555554444444,,,,,,,000000033333330000000 111111199999998888888,,,,,,,666666699999998888888 222222288888887777777,,,,,,,333333388888889999999''''''' 333333311111119999999,,,,,,,222222266666666666666 22 BBaannkkss'' oowwnn ccllaaiimmss oonn ffoorreeiiggnneerrss 111111111111115555555,,,,,,,555555544444445555555 111111133333333333333,,,,,,,999999944444443333333 111111177777772222222,,,,,,,555555599999992222222 197,584 208,754 222222255555550000000,,,,,,,111111133333336666666 255,456 264,239' 222222277777776666666,,,,,,,111111122222223333333 288,127 33 FFoorreeiiggnn ppuubblliicc bboorrrroowweerrss 11111110000000,,,,,,,333333344444446666666 11111115555555,,,,,,,999999933333337777777 22222220000000,,,,,,,888888888888882222222 25,436 26,397 33333330000000,,,,,,,999999933333330000000 33,325 33,311' 33333333333333,,,,,,,444444477777774444444 34,767 44 OOwwnn ffoorreeiiggnn ooffffiicceess'' 44444441111111,,,,,,,666666600000005555555 44444447777777,,,,,,,444444422222228888888 66666665555555,,,,,,,000000088888884444444 78,988 84,651 99999996666666,,,,,,,666666600000007777777 96,268 96,821' 111111100000001111111,,,,,,,444444422222228888888 105,407 55 UUnnaaffffiilliiaatteedd ffoorreeiiggnn bbaannkkss 44444440000000,,,,,,,444444488888883333333 44444440000000,,,,,,,999999922222227777777 55555550000000,,,,,,,111111166666668888888 55,711 58,477 77777773333333,,,,,,,444444466666662222222 75,951 82,403' 88888887777777,,,,,,,000000000000000000000 91,734 66 DDeeppoossiittss 5555555,,,,,,,444444422222228888888 6666666,,,,,,,222222277777774444444 8888888,,,,,,,222222255555554444444 13,148 13,637 22222221111111,,,,,,,999999999999992222222 23,485 25,683' 22222228888888,,,,,,,888888811111118888888 29,109 77 OOtthheerr 33333335555555,,,,,,,000000055555554444444 33333334444444,,,,,,,666666655555554444444 44444441111111,,,,,,,999999911111114444444 42,563 44,840 55555551111111,,,,,,,444444477777770000000 52,466 56,720' 55555558888888,,,,,,,111111188888883333333 62,625 88 AAllll ootthheerr ffoorreeiiggnneerrss 22222223333333,,,,,,,111111111111111111111 22222229999999,,,,,,,666666655555550000000 33333336666666,,,,,,,444444455555559999999 37,449 39,228 44444449999999,,,,,,,111111133333337777777 49,912 51,704' 55555554444444,,,,,,,222222222222221111111 56,219 99 CCllaaiimmss ooff bbaannkkss'' ddoommeessttiicc ccuussttoommeerrss22 .... 11111111111111,,,,,,,222222244444443333333 22222220000000,,,,,,,000000088888888888888 22222226666666,,,,,,,111111100000006666666 33333337777777,,,,,,,222222255555553333333''''''' 44444443333333,,,,,,,111111144444443333333 444444488888880000000 999999955555555555555 888888888888885555555 1111111,,,,,,,333333377777778888888''''''' 1111111,,,,,,,555555511111112222222 11 Negotiable and readily transferable 5555555,,,,,,,333333399999996666666 11111113333333,,,,,,,111111100000000000000 11111115555555,,,,,,,555555577777774444444 22222225555555,,,,,,,777777755555552222222''''''' 33333332222222,,,,,,,333333322222228888888 12 Outstanding collections and other 5555555,,,,,,,333333366666666666666 6666666,,,,,,,000000033333332222222 9999999,,,,,,,666666644444448888888 11111110000000,,,,,,,111111122222223333333 9999999,,,,,,,333333300000003333333 13 MEMO: Customer liability on 11111115555555,,,,,,,000000033333330000000 11111118888888,,,,,,,000000022222221111111 22222222222222,,,,,,,777777711111114444444 22222229999999,,,,,,,555555566666665555555''''''' 33333330000000,,,,,,,222222277777773333333 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 13,668 22,253 24,249 40,000 41,628' 39,221' 42,092' 43,768' 40,781'' 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. A Liabilities and claims of banks in the United States were increased, beginning 2. Assets owned by customers of the reporting bank located in the United States in December 1981, by the shift from foreign branches to International Banking that represent claims on foreigners held by reporting banks for the account of their Facilities in the United States of liabilities to, and claims on, foreign residents. domestic customers. NOTE. Beginning April 1978, data for banks' own claims are given on a monthly 3. Principally negotiable time certificates of deposit and bankers acceptances. basis, but the data for claims of banks' own domestic customers are available on a quarterly basis only. 3.20 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 1982 MMaattuurriittyy;; bbyy bboorrrroowweerr aanndd aarreeaa Dec. Dec. Dec. June Sept Dec.4 Mar.P 1 Total 73,635 86,181 106,748 117,445 122,257 153,355 174,697 By borrower 2 Maturity of 1 year or less1 58,345 65,152 82,555 91,982 94,722 115,433 132,886 3 Foreign public borrowers 4,633 7,233 9,974 11,733 12,955 15,073 16,579 4 All other foreigners 53,712 57,919 72,581 80,248 81,767 100,359 116,307 5 Maturity of over 1 year' 15,289 21,030 24,193 25,463 27,535 37,922 41,811 6 Foreign public borrowers 5,395 8,371 10,152 11,022 12,410 15,573 17,054 7 All other foreigners 9,894 12,659 14,041 14,441 15,125 22,349 24,757 By area Maturity of 1 year or less1 8 Europe 15,169 15,235 18,715 21,095 22,898 27,702 34,061 9 Canada 2,670 1,777 2,723 3,319 3,906 4,557 5,628 10 Latin America and Caribbean 20,895 24,928 32,034 33,514 35,524 48,286 58,493 11 17,545 21,641 26,686 31,489 29,296 31,463 30,595 12 Africa 1,496 1,077 1,757 1,768 2,324 2,501 2,886 13 All other2 569 493 640 797 774 923 1,224 Maturity of over 1 year1 14 Europe 3,142 4,160 5,118 6,307 6,424 8,093 8,478 15 Canada 1,426 1,317 1,448 1,317 1,347 1,754 1,863 16 Latin America and Caribbean 8,464 12,814 15.075 15,448 17,478 25,031 27,849 17 1,407 1,911 1,865 1,680 1,565 1,886 2,214 18 Africa 637 655 507 551 548 897 1,093 19 All other2 214 173 179 159 172 261 315 1. Remaining time to maturity. ^ Liabilities and claims of banks in the United States were increased, beginning 2. Includes nonmonetary international and regional organizations. in December 1981, by the shift from foreign branches to International Banking Facilities in the United States of liabilities to, and claims on, foreign residents. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A63 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. Offices and Foreign Branches of U.S.-Chartered Banks1 Billions of dollars, end of period 1980 1981 1982 AArreeaa oorr ccoouunnttrryy 1199778822 11997799 Mar. June Sept. Dec. Mar. June Sept/ Dec/ Mar? 1 266.2 303.9 308.5 328.8 339.3 352.0 370.6 382.5 399.4 411.3 408.5 2 G-10 countries and Switzerland 124.7 138.4 141.3 154.2 158.8 162.1 167.9 168.2 172.0 173.2 170.3 3 Belgium-Luxembourg 9.0 11.1 10.8 13.1 13.6 13.0 13.5 13.8 14.1 13.2 13.0 4 France 12.2 11.7 12.0 14.1 13.9 14.1 14.5 14.7 16.0 15.2 15.5 5 Germany 11.3 12.2 11.4 12.7 12.9 12.1 13.2 12.1 12.7 12.8 12.4 6 Italy 6.7 6.4 6.2 6.9 7.2 8.2 7.7 8.4 8.6 9.7 8.8 7 Netherlands 4.4 4.8 4.3 4.5 4.4 4.4 4.6 4.1 3.7 4.0 4.0 8 Sweden 2.1 2.4 2.4 2.7 2.8 2.9 3.2 3.1 3.4 3.7 4.1 9 Switzerland 5.3 4.7 4.3 3.3 3.4 5.0 5.1 5.2 5.1 5.4 5.3 10 United Kingdom 47.3 56.4 57.6 64.4 66.7 67.4 68.2 67.0 68.7 69.0 68.5 11 Canada 6.0 6.3 6.9 7.2 7.7 8.4 8.8 10.8 11.7 10.8 11.1 12 Japan 20.6 22.4 25.4 25.5 26.1 26.5 29.1 28.9 28.0 29.3 27.6 13 Other developed countries 19.4 19.9 18.8 20.3 20.6 21.6 23.5 24.8 26.4 28.4 30.4 14 Austria 1.7 2.0 1.7 1.8 1.8 1.9 1.8 2.1 2.2 2.0 2.1 15 Denmark 2.0 2.2 2.1 2.2 2.2 2.3 2.4 2.3 2.5 2.4 2.5 16 Finland 1.2 1.2 1.1 1.3 1.2 1.4 1.4 1.3 1.4 1.7 1.6 17 Greece 2.3 2.4 2.4 2.5 2.6 2.8 2.7 3.0 2.9 2.7 2.8 18 Norway 2.1 2.3 2.4 2.4 2.4 2.6 2.8 2.8 3.0 3.1 3.2 19 Portugal .6 .7 .6 .6 .7 .6 .6 .8 1.0 1.1 1.2 20 3.5 3.5 3.5 3.9 4.2 4.4 5.5 5.7 5.8 6.6 7.1 21 Turkey 1.5 1.4 1.4 1.4 1.3 1.5 1.5 1.4 1.5 1.4 1.5 22 Other Western Europe 1.3 1.4 1.4 1.6 1.7 1.7 1.8 1.8 1.9 2.1 2.2 23 South Africa 2.0 1.3 1.1 1.5 1.2 1.1 1.5 1.9 2.5 2.8 3.2 24 Australia 1.4 1.3 1.2 1.2 1.2 1.3 1.4 1.7 1.9 2.5 3.1 25 OPEC countries3 22.7 22.9 21.8 20.9 21.4 22.7 21.7 22.2 23.5 24.4 24.5 26 Ecuador 1.6 1.7 1.8 1.8 1.9 2.1 2.0 2.0 2.1 2.2 2.3 27 Venezuela 7.2 8.7 7.9 7.9 8.5 9.1 8.3 8.7 9.2 9.6 9.3 28 Indonesia 2.0 1.9 1.9 1.9 1.9 1.8 2.1 2.1 2.5 2.5 2.7 29 Middle East countries 9.5 8.0 7.8 6.9 6.7 6.9 6.7 6.8 7.1 7.6 8.1 30 African countries 2.5 2.6 2.5 2.5 2.4 2.8 2.6 2.6 2.6 2.5 2.1 31 Non-OPEC developing countries 52.6 63.0 63.7 67.7 73.0 77.4 81.9 84.7 90.0 95.9 94.2 Latin America 32 Argentina 3.0 5.0 5.5 5.6 7.6 7.9 9.4 8.5 9.2 9.3 9.3 33 Brazil 14.9 15.2 15.0 15.3 15.8 16.2 16.8 17.3 17.6 19.0 18.9 34 Chile 1.6 2.5 2.5 2.7 3.2 3.7 4.0 4.8 5.5 5.8 5.6 35 Colombia 1.4 2.2 2.1 2.2 2.4 2.6 2.4 2.5 2.5 2.6 2.2 36 Mexico 10.8 12.0 12.1 13.6 14.4 15.9 17.0 18.2 20.0 21.5 21.8 37 Peru 1.7 1.5 1.3 1.4 1.5 1.8 1.8 1.7 1.8 2.0 1.8 38 Other Latin America 3.6 3.7 3.6 3.6 3.9 3.9 4.7 3.8 4.2 4.4 4.4 Asia China 39 Mainland .0 .1 .1 .1 .1 .2 .2 .2 .2 .2 .2 40 Taiwan 2.9 3.4 3.6 3.8 4.1 4.2 4.4 4.6 5.1 5.1 5.1 41 .2 .2 .2 .2 .2 .3 .3 .3 .3 .3 .5 42 Israel 1.0 1.3 .9 1.2 1.1 1.5 1.3 1.8 1.5 2.0 1.6 43 Korea (South) 3.9 5.4 6.4 7.1 7.3 7.1 7.7 8.8 8.6 9.4 8.5 44 Malaysia .6 1.0 .8 1.1 1.1 1.1 1.2 1.4 1.4 1.7 1.7 45 Philippines 2.8 4.2 4.4 4.6 4.8 5.1 4.8 5.1 5.6 6.0 5.8 46 Thailand 1.2 1.5 1.4 1.5 1.5 1.6 1.6 1.5 1.4 1.5 1.3 47 Other Asia .2 .5 .5 .5 .5 .6 .5 .7 .8 1.0 1.0 Africa 48 Egypt .4 .6 .7 .8 .6 .8 .8 .7 1.0 1.1 1.3 49 Morocco .6 .6 .6 .5 .6 .7 .6 .5 .7 .7 .7 50 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 51 Other Africa4 1.4 1.7 1.8 1.9 2.1 2.1 2.2 2.1 2.2 2.3 2.3 52 Eastern Europe 6.9 7.3 7.3 7.2 7.3 7.4 7.7 7.7 7.7 7.7 7.1 53 U.S.S.R 1.3 .7 .6 .5 .5 .4 .4 .5 .4 .6 .4 54 Yugoslavia 1.5 1.8 1.9 2.1 2.1 2.3 2.4 2.5 2.5 2.5 2.3 55 Other 4.1 4.8 4.9 4.5 4.7 4.6 4.8 4.8 4.7 4.7 4.4 56 Offshore banking centers 31.0 40.4 42.6 44.3 44.6 47.0 53.1 59.2 61.7 62.9 64.1 57 Bahamas 10.4 13.7 13.9 13.7 13.2 13.7 15.2 17.9 21.3 18.7 19.5 58 Bermuda .7 .8 .6 .6 .6 .6 .7 .7 .8 .7 .6 59 Cayman Islands and other British West Indies 7.4 9.4 11.3 9.8 10.1 10.6 11.7 12.6 12.0 12.3 11.5 60 Netherlands Antilles .8 1.2 .9 1.2 1.3 2.1 2.3 2.4 2.2 3.1 3.2 61 Panama5 3.0 4.3 4.9 5.6 5.6 5.4 6.5 6.9 6.7 7.5 6.8 62 Lebanon .1 .2 .2 .2 .2 .2 .2 .2 .2 .2 .2 63 Hong Kong 4.2 6.0 5.7 6.9 7.5 8.1 8.4 10.3 10.3 11.7 13.0 64 Singapore 3.9 4.5 4.7 5.9 5.6 5.9 7.3 8.1 8.0 8.6 9.3 65 Others6 .5 .4 .4 .4 .4 .3 .9 .3 .1 .1 .1 66 Miscellaneous and unallocated7 9.1 11.7 13.2 14.3 13.7 14.0 14.9 15.7 18.2 18.9 17.9 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 • June 1982 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States1 F Millions of dollars, end of period 1980 1981 TTyyppee,, aanndd aarreeaa oorr ccoouunnttrryy 11997788 11997799 11998800 Dec. Mar. June Sept. Dec.P 1 Total 14,952 17,174 21,652 21,652 21,672 21,192 22,780 21,495 2 3 P P a a y y a a b b l l e e i i n n d fo o r l e la ig rs n currencies2 1 3 1 . , 4 5 2 2 9 3 1 3 4 , , 0 1 7 0 5 0 1 3 7 , , 7 9 0 4 9 4 1 3 7 , , 7 9 0 4 9 4 1 3 8 , , 5 1 2 4 8 5 1 3 7 , , 2 9 4 4 7 4 1 3 9 , , 0 7 0 7 9 2 1 3 8 , , 4 0 4 4 9 6 By type 4 Financial liabilities 6,368 7,485 11,135 11,135 11,506 11,414 12,426 11,073 5 Payable in dollars 3,853 5,215 8,363 8,363 8,873 9,082 10,227 8,649 6 Payable in foreign currencies 2,515 2,270 2,772 2,772 2,633 2,333 2,199 2,424 7 Commercial liabilities 8,584 9,690 10,517 10,517 10,166 9,777 10,355 10,422 8 Trade payables 4,001 4,421 4,708 4,708 4,758 4,377 4,351 4,598 9 Advance receipts and other liabilities 4,583 5,268 5,810 5,810 5,409 5,401 6,003 5,823 10 Payable in dollars 7,670 8,885 9,581 9,581 9,272 8,862 9,545 9,397 11 Payable in foreign currencies 914 805 936 936 895 915 810 1,025 By area or country Financial liabilities 12 Europe 3,971 4,658 6,320 6,320 6,019 5,955 7,416 6,071 13 Belgium-Luxembourg 293 345 487 487 558 532 492 404 14 France 173 175 327 327 324 367 825 560 15 Germany 366 497 582 582 498 451 430 468 16 Netherlands 391 829 663 663 544 746 651 751 17 Switzerland 248 170 354 354 315 321 388 691 18 United Kingdom 2,167 2,463 3,772 3,772 3,668 3,422 4,478 3,082 19 Canada 247 532 964 964 1,096 978 977 935 20 Latin America and Caribbean 1,357 1,483 3,103 3,103 3,483 3,592 3,195 3,258 21 Bahamas 478 375 964 964 1,217 11,,227722 1,019 1,279 22 Bermuda 4 81 1 1 1 11 0 7 23 Brazil 10 18 23 23 19 20 20 22 24 British West Indies 194 514 1,452 1,452 1,458 11,,553344 1,363 1,200 25 Mexico 102 121 99 99 97 9988 107 109 26 Venezuela 49 72 81 81 85 91 90 98 27 784 804 723 723 880 861 805 764 28 Japan 717 726 644 644 766 741 687 664 29 Middle East oil-exporting countries3 32 31 38 38 51 29 30 24 30 Africa 5 4 11 11 6 5 3 3 31 Oil-exporting countries4 2 1 1 1 1 0 1 0 32 All other5 5 4 15 15 23 24 29 43 Commercial liabilities 33 Europe 3,047 3,636 4,197 4,197 3,801 3,892 3,955 3,752 34 Belgium-Luxembourg 97 137 90 90 83 72 78 71 35 France 321 467 582 582 547 558 575 573 36 Germany 523 545 679 679 640 617 590 551 37 Netherlands 246 227 219 219 246 225 238 221 38 Switzerland 302 310 493 493 385 375 563 415 39 United Kingdom 824 1,077 1,017 1,017 881 950 925 863 40 Canada 667 868 806 806 740 652 742 853 41 Latin America 997 1,323 1,244 11,,224444 1,287 1,149 1,087 985 42 Bahamas 25 69 8 88 1 4 3 2 43 Bermuda 97 32 73 73 111 72 113 67 44 Brazil 74 203 111 111 84 54 61 67 45 British West Indies 53 21 35 35 16 34 11 2 46 Mexico 106 257 326 326 421 319 345 293 47 Venezuela 303 301 307 307 253 290 273 276 48 2,927 2,902 3,001 3,001 3,071 2,787 3,221 3,466 4 5 9 0 J M ap id a d n l e East oil-exporting countries3 1,5 4 1 4 8 8 1,0 4 1 9 4 4 8 89 0 0 2 8 8 0 9 2 0 9 8 5 1 5 0 8 83 6 7 7 7 8 7 8 77 88 55 11 9 9 0 4 9 3 5 5 1 2 Af O ri i c l a -e xporting countries4 7 3 4 1 3 2 7 3 2 8 8 4 8 5 1 1 4 4 8 5 1 1 4 4 8 5 2 1 8 9 6 3 7 9 6 2 7 3 5 5 7 5 7 3 0 4 2 4 53 All other5 203 233 456 456 440 622 593 664 1. For a description of the changes in the International Statistics tables, see July 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia and 1979 BULLETIN, p. 550. United Arab Emirates (Trucial States). 2. Before December 1978, foreign currency data include only liabilities denom- 4. Comprises Algeria, Gabon, Libya, and Nigeria. inated in foreign currencies with an original maturity of less than one year. 5. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A65 3.23 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 Dec. Mar. June Sept. Dec.P 1 Total 28,001 31,315 34,469 34,469 37,619 35,152 34,300 34,810 2 Payable in dollars 24,998 28,122 31,543 31,543 34,613 32,245 31,332 31,744 3 Payable in foreign currencies2 3,003 3,193 2,926 2,926 3,007 2,907 2,968 3,066 By type 4 Financial claims 16,644 18,443 19,844 19,844 22,175 20,027 19,394 20,018 5 Deposits 11,201 12,809 14,010 14,010 16,446 14,398 13,598 14,307 6 Payable in dollars 10,133 11,893 13,235 13,235 15,651 13,672 12,866 13,653 7 Payable in foreign currencies 1,068 916 775 775 795 725 732 654 8 Other financial claims 5,443 5,634 5,834 5,834 5,729 5,629 5,796 5,711 9 Payable in dollars 3,874 3,808 4,152 4,152 4,082 3,992 4,116 3,785 10 Payable in foreign currencies 1,569 1,826 1,683 1,683 1,646 1,638 1,679 1,926 11 Commercial claims 11,357 12,872 14,625 14,625 15,445 15,125 14,906 14,791 12 Trade receivables 10,798 12,178 13,906 13,906 14,644 14,295 14,047 13,880 13 Advance payments and other claims 559 694 720 720 801 830 859 912 14 Payable in dollars 10,991 12,422 14,157 14,157 14,879 14,581 14,349 14,305 15 Payable in foreign currencies 366 450 468 468 566 544 556 486 By area or country Financial claims 16 Europe 5,225 6,167 6,098 6,098 6,054 5,114 4,798 4,558 17 Belgium-Luxembourg 48 32 195 195 170 174 26 43 18 France 178 177 337 337 411 377 348 325 19 Germany 510 409 230 230 213 139 320 244 20 Netherlands 103 53 32 32 42 34 68 47 21 Switzerland 98 73 59 59 90 % 66 118 22 United Kingdom 4,031 5,111 4,968 4,968 4,856 3,948 3,645 3,488 23 Canada 4.549 4,984 5,057 5,057 6,611 6,159 6,009 6,060 24 Latin America and Caribbean 5,714 6,290 7,709 7,709 8,568 7,891 7,607 8,259 25 Bahamas 3,001 2,765 3,448 3,448 3,957 3,240 3,239 3,812 26 Bermuda 80 30 135 135 13 33 15 18 27 Brazil 151 163 96 96 22 20 66 30 28 British West Indies 1,291 2,007 2,684 2,684 3,404 3,3% 3,195 3,253 29 Mexico 162 157 208 208 168 162 271 298 30 Venezuela 157 143 137 137 131 143 143 146 31 920 706 710 710 691 609 642 923 32 Japan 305 199 177 177 191 99 109 363 33 Middle East oil-exporting countries3 18 16 20 20 17 19 29 37 34 Africa 181 253 238 238 214 216 222 168 35 Oil-exporting countries4 10 49 26 26 27 39 41 46 36 All other5 55 44 32 32 36 37 116 51 Commercial claims 37 Europe 3,983 4,909 5,502 5,502 5,807 5,467 5,347 5,310 38 Belgium-Luxembourg 144 202 233 233 277 235 220 233 39 France 609 727 1,127 1,127 900 783 767 771 40 Germany 399 589 589 589 597 572 580 554 41 Netherlands 267 298 318 318 347 308 308 303 42 Switzerland 198 272 351 351 461 474 404 427 43 United Kingdom 824 901 928 928 1,190 1,067 1,032 964 44 Canada 1,094 849 896 896 1,034 991 1,011 965 45 Latin America and Caribbean 2,546 2,869 3,753 3,753 3,838 3,793 3,726 3,446 46 Bahamas 109 21 21 21 15 29 18 12 47 Bermuda 215 197 108 108 170 192 241 223 48 Brazil 628 645 861 861 799 823 726 668 49 British West Indies 9 16 34 34 15 34 13 12 50 Mexico 505 698 1,091 1,091 1,053 1,113 983 1,015 51 Venezuela 291 343 409 409 439 420 454 422 52 3,108 3,451 3,505 3,505 3,761 3,767 3,653 3,868 53 Japan 1,006 1,177 1,045 1,045 1,294 1,218 1,104 1,215 54 Middle East oil-exporting countries3 713 765 819 819 923 934 828 888 55 Africa 447 554 651 651 678 703 717 744 56 Oil-exporting countries4 136 133 151 151 143 137 154 151 57 All other5 178 240 318 318 327 404 451 458 1. For a description of the changes in the International Statistics tables, see July 3. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar. Saudi Arabia, and 1979 BULLETIN, p. 550. United Arab Emirates (Trucial States). 2. Prior to December 1978, foreign currency data include only liabilities denom- 4. Comprises Algeria, Gabon, Libya, and Nigeria. inated in foreign currencies with an original maturity of less than one year. 5. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 International Statistics • June 1982 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1982 1981 1982 TTrraannssaaccttiioonnss,, aanndd aarreeaa oorr ccoouunnttrryy 11998800 11998811 Jan.- Apr. Oct. Nov. Dec. Jan. Feb. Mar. Apr.P U.S. corporate securities STOCKS 1 Foreign purchases 40,293 40,582 9,578 2,839 2,689 2,940 2,016 2,524 2,679 2,359 34,870 34,821 8,343 2.792 2,494 2,740 1,748 1,988 2,506 2,101 2 Foreign sales 3 Net purchases, or sales (-)... 5,423 5,761 1,235 47 195 200 268 536 173 258 4 Foreign countries 5,405 5,737 1,217 53 207 199 263 537 164 252 5 Europe 3,1 4 1 9 2 0 3,5 8 9 8 9 9 - 9 2 3 6 7 4 2 6 1 1 -7 0 9 17 5 6 2 _ 3 2 1 3 - 4 6 7 - 1 5 9 2 1 1 3 6 3 7 6 France 172 -28 98 6 -4 -6 11 17 41 29 7 Germany -328 37 33 13 28 -73 3 38 1 -9 8 Netherlands 308 276 -119 -97 0 75 40 -33 -60 -66 9 Switzerland 2,523 2,210 910 86 96 171 169 317 248 176 10 United Kingdom 887 783 -143 -47 7 8 -45 20 -118 0 11 Canada 148 -30 52 7 54 -36 -13 31 -19 53 1 1 2 3 L M a i t d in d le A m Ea e s r t i 1 c a and Caribbean 1,20 1 6 6 1.1 2 4 8 0 4 33 1 3 7 -1 1 1 6 7 4 - 4 7 6 -2 7 4 4 5 4 1 0 1 -6 3 7 8 2 4 3 -4 6 0 1 14 Other Asia -1 7 -2 0 1 0 0 1 -3 0 15 Africa 38 -46 23 -2 -3 1 -1 6 6 12 16 Other countries 17 Nonmonetary international and regional organizations.... 18 24 18 -6 -12 0 5 -1 9 6 BONDS2 18 Foreign purchases 1 9 5 , , 9 4 6 2 4 5 1 17 2 , , 1 1 9 5 2 2 4 5, , 7 6 1 7 6 0 1 1, , 1 2 7 0 6 3 1 1 , , 0 3 9 0 9 3 1 1 , , 1 0 9 3 2 8 9 7 4 7 6 8 9 92 3 9 0 1 1 , , 6 4 1 8 9 1 2 1 , , 2 4 2 8 2 1 19 Foreign sales 5,461 5,039 1,046 -26 -204 153 168 -1 138 741 20 Net purchases, or sales ( — )... 5,526 4,973 991 -17 -212 157 154 10 144 682 21 Foreign countries 1,576 1,353 870 -96 -112 139 144 16 169 540 22 Europe 2 1 1 2 3 9 84 1 8 1 8 6 1 0 1 4 5 3 6 4 7 5 7 2 8 1 8 5 10 1 4 4 22 1 4 2 3 2 9 0 5 23 France -65 70 33 13 9 3 2 0 17 14 24 Germany 54 108 88 7 10 -3 19 8 15 46 25 Netherlands 1,257 178 -142 -164 -174 55 3 -102 -102 59 26 Switzerland 135 -12 118 -35 -29 -2 29 15 29 46 27 United Kingdom 185 132 22 -12 4 22 17 -11 26 -8 28 Canada 3,499 3,465 -59 84 -72 -62 -89 -63 -41 135 2 3 9 0 L M a i t d in d le A m Ea e s r t i 1 c a and Caribbean 117 5 - 4 4 1 -1 5 9 8 43 0 - - 1 1 60 0 5 0 3 5 0 2 -2 -6 9 - - 1 1 3 8 3 3 1 2 O A t f h ri e c r a Asia 10 -7 1 0 -2 -2 0 2 -3 1 3343 NOothnemr ocnoeutanrtyri eisn ternational and regional organizations.... -65 66 55 -10 9 -4 14 -11 -6 59 Foreign securities 35 Stocks, net purchases, or sales (-) -2,141 5 170 -30 -70 82 159 44 31 -64 36 Foreign purchases 7,888 9,199 2,103 588 625 699 521 507 692 382 37 Foreign sales 10,029 9,195 1,933 617 695 617 362 463 661 446 38 Bonds, net purchases, or sales (-) -1,001 -5,177 -698 -109 -1,945 -772 -22 -99' -520 -57 39 Foreign purchases 17,084 17,796 7,538 1,553 2,297 1,980 1.222 1,514 2,549 2,254 40 Foreign sales 18,086 22,973 8,236 1,661 4.242 2,751 1,243 1,612' 3,069 2,312 41 Net purchases, or sales (-), of stocks and bonds . -3,143 -5,172 -528 -139 -2,015 -689 138 -55' -489 -122 42 Foreign countries -4,019 -4,416 -567 -311 -1,426 31 109 -115' -505 -56 43 Europe -1,108 -642 69 -45 -453 136 143 -56' 109 -127 44 Canada -1,948 -3,698 -676 -205 -878 -166 -80 -102 -608 115 45 Latin America and Caribbean 81 170 432 50 -6 -2 67 67 96 202 46 -1,147 -287 -366 -113 -148 49 -2 -20 -115 -229 47 Africa 24 -53 -37 1 1 6 -15 -1 -5 -17 48 Other countries 79 94 10 0 57 8 -4 -3 1177 00 49 Nonmonetary international and regional organizations 876 -756 39 173 -588 -720 28 60 16 -66 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

Investment Transactions and Discount Rates A67 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Holdings and Transactions Millions of dollars 1982 1981 1982 Country or area 1980 1981 Jan.- Apr. Oct. Nov. Dec. Jan. Feb. Mar. Apr.? Holdings (end of period)1 1 Estimated total2 57,549 70,201 68,482 70,370 70,201 71,487 73,800 75,793' 77,264 2 Foreign countries2 52,961 64,530 64,061 65,893 64,530 65,850 68,273r 70,251r 71,926 3 Europe2 24,468 23,976 24.531 24,952 23,976 24.373 25.332 26,085r 26,398 4 Belgium-Luxembourg 77 543 384 329 543 614 363 539r 709 5 Germany2 12,327 11,861 13,029 13,226 11,861 11,898 12,845 13,055 13,231 6 Netherlands 1,884 1,955 1,784 1,889 1,955 1,998 2,038 2,052 2,139 7 Sweden 595 643 661 645 643 644 635 697 667 8 Switzerland2 1,485 846 861 833 846 904 984 1,025' 1,157 9 United Kingdom 7,323 6,709 6,446 6,693 6,709 6,800 6,931 7,037 6,737 10 Other Western Europe 111 1,419 1,367 1.337 1.419 1,514 1,535 1,680 1.757 11 Eastern Europe 0 0 0 0 0 0 0 0 0 12 Canada 449 514 540 501 514 533 499 r 458r 473 13 Latin America and Caribbean 999 736 788 761 736 721 728 760 886 14 Venezuela 292 286 289 306 286 286 286 286 306 15 Other Latin America and Caribbean 285 319 317 289 319 321 337 370 383 16 Netherlands Antilles 421 131 182 165 131 113 104 103 196 17 Asia 26,112 38,671 37,052 38,638 38,671 39,700 41,310 42,531 43,750 18 Japan 9,479 10,780 10,094 10,732 10,780 10,844 11,022 11,203 11,381 19 Africa 919 631 1,141 1,037 631 519 400 401 403 20 All other 14 2 8 3 2 3 5 17 17 21 Nonmonetary international and regional organizations 4,588 5,671 4,421 4,477 5,671 5,637 5,521r 5,542 5,338 22 International 4,548 5.637 4,419 4,462 5,637 5,603 5.493 5.529 5,278 23 Latin American regional 36 1 1 1 1 1 -4 -4 -4 Transactions (net purchases, or sales (-) during period) 24 Total2 6,066 12,652 7,063 1,480 1,888 -169 1,286 2,313r 1,994r 1,470 25 Foreign countries2 6,906 11,568 7,397 1,698 1,832 -1,363 1,320 2,423r 1,978' 1,676 26 Official institutions 3,865 11,694 5,321 1,632 1.997 -787 841 2,343 1,311 827 27 Other foreign2 3,040 -127 2,074 65 -165 -576 478 80' 667 849 28 Nonmonetary international and regional organizations .. -843 1,085 -332 -217 57 1,194 -33 -110 16 -205 MEMO: Oil-exporting countries 29 Middle East3 7,672 11,156 3,768 1,442 1,250 17 1,019 1,373 470 906 30 Africa4 327 -289 -229 0 - 102 -407 -112 -119 0 2 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. 3.26 DISCOUNT RATES OF FOREIGN CENTRAL BANKS Percent per annum Rate on Apr. 30, 1982 Rate on Apr. 30, 1982 Rate on Apr. 30, 1982 Country Country Country Per- Month Per- Month Per- Month cent effective cent effective cent effective Argentina 147.95 May 1982 France1 16.0 Apr. 1982 Sweden 10.0 Mar. 1982 Austria .. 6.75 Mar. 1980 Germany, Fed. Rep. of 7.5 May 1980 Switzerland 5.5 Mar. 1982 Belgium.. 14.0 Apr. 1982 Italy 19.0 Mar. 1981 United Kingdom- Brazil 49.0 Mar. 1981 Japan 5.5 Dec. 1981 Venezuela Aug. 1981 Canada .. 15.43 May 1982 Netherlands 8.0 Mar. 1982 Denmark. 11.00 Oct. 1980 Norway 9.0 Nov. 1979 1. As of the end of February 1981, the rate is that at which the Bank of France discounts or makes advances against eligible commercial paper and/or discounts 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 International Statistics • June 1982 3.27 FOREIGN SHORT-TERM INTEREST RATES Percent per annum, averages of daily figures 1981 1982 CCoouunnttrryy,, oorr ttyyppee 11997799 11998800 11998811 Nov. Dec. Jan. Feb. Mar. Apr. May 1 Eurodollars 11.96 14.00 16.79 13.33 13.24 14.29 15.75 14.90 15.20 14.53 2 United Kingdom 13.60 16.59 13.86 15.03 15.31 15.14 14.47 13.53 13.69 13.31 3 Canada 11.91 13.12 18.84 16.53 15.97 15.01 15.25 15.67 15.74 15.46 4 Germanv 6.64 9.45 12.05 11.05 10.72 10.43 10.22 9.84 9.30 9.12 5 Switzerland 2.04 5.79 9.15 9.88 9.76 8.53 8.29 6.37 4.96 3.80 6 Netherlands 9.33 10.60 11.52 11.70 11.03 10.49 10.06 8.90 8.20 8.62 7 France 9.44 12.18 15.28 15.35 15.30 15.07 14.58 15.21 16.36 16.17 8 Italy 11.85 17.50 19.98 21.12 21.24 21.38 21.34 20.63 20.62 20.59 9 Belgium 10.48 14.06 15.28 15.28 15.48 15.09 14.89 14.02 14.95 15.00 10 Japan 6.10 11.45 7.58 7.15 6.75 6.41 6.38 6.43 6.57 6.80 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 Currency units per dollar 1981 1982 CCoouunnttrryy//ccuurrrreennccyy 11997799 11998800 11998811 Dec. Jan. Feb. Mar. Apr. May 1 Argentina/peso n.a. n.a. n.a. 7417.10 9910.00 10256.00 10795.65 11761.36 13942.50 2 Australia/dollar1 111.77 111.57 114.57 113.39 111.41 108.50 106.03 105.15 105.94 3 Austria/schilling 13.387 12.945 15.948 15.852 16.066 16.587 16.711 16.853 16.274 4 Belgium/franc 29.342 29.237 37.194 38.296 39.027 41.144 44.379 45.292 43.666 5 Brazil/cruzeiro n.a. n.a. 92.374 121.98 130.14 137.97 144.07 151.03 159.08 6 Canada/dollar 1.1603 1.1693 1.1990 1.1851 1.1926 1.2140 1.2205 1.2252 1.2336 7 Chile/peso n.a. n.a. n.a. 39.100 39.100 39.100 39.100 39.407 39.537 8 China, P.R./yuan n.a. n.a. 1.7031 1.7405 1.7713 1.8200 1.8429 1.8565 1.8123 9 Colombia/peso n.a. n.a. n.a. 57.129 59.409 60.129 60.956 61.057 62.365 10 Denmark/krone 5.2622 5.6345 7.1350 7.3210 7.4977 7.7950 8.0396 8.1591 7.8444 11 Finland/markka 3.8886 3.7206 4.3128 4.3666 4.4033 4.5058 4.5663 4.6097 4.5045 12 France/franc 4.2566 4.2250 5.4396 5.7141 5.8298 6.0176 6.1428 6.2457 6.0237 13 Germany/deutsche mark 1.8342 1.8175 2.2631 2.2579 2.2938 2.3660 2.3800 2.3970 2.3127 14 Greece/drachma n.a. n.a. n.a. 57.231 58.811 60.973 61.769 63.541 62.892 15 Hong Kong/dollar n.a. n.a. 5.5678 5.6329 5.7959 5.8857 5.8298 5.8270 5.7549 16 India/rupee 8.1555 7.8866 8.6807 9.1304 9.1525 9.2144 9.2935 9.3923 9.2965 17 Indonesia/rupiah n.a. n.a. n.a. 632.36 645.7 645.89 649.00 651.14 653.67 18 Iran/rial n.a. n.a. 79.324 79.000 n.a. n.a. n.a. n.a. 19 Ireland/pound1 204.65 213.53 161.32 157.30 153.97 148.86 147.25 144.22 149.60 20 Israel/shekel n.a. n.a. n.a. 15.363 16.163 17.488 18.766 20.014 21.184 21 Italy/lira 831.10 856.20 1138.60 1206.40 1228.20 1263.20 1293.29 1321.60 1283.37 22 Japan/yen 219.02 226.63 220.63 218.95 224.80 235.31 241.23 244.11 236.96 23 Malaysia/ringgit 2.1721 2.1767 2.3048 2.2477 2.2575 2.3662 2.3265 2.3395 2.2907 24 Mexico/peso 22.816 22.968 24.547 26.071 26.469 31.736 45.366 46.152 46.903 25 Netherlands/guilder 2.0072 1.9875 2.4998 2.4734 2.5145 2.5947 2.6186 2.6594 2.5709 26 New Zealand/dollar1 102.23 98.65 86.848 82.784 81.399 79.325 77.698 76.562 77.025 27 Norway/krone 5.0650 4.9381 5.7430 5.7801 5.8623 5.9697 6.0255 6.0820 5.9675 28 Peru/sol n.a. n.a. n.a. 487.73 515.21 534.47 561.08 591.29 622.87 29 Philippines/peso n.a. n.a. 7.8113 8.1446 8.2132 8.2530 8.3291 8.3565 8.4016 30 Portugal/escudo 48.953 50.082 61.739 65.348 66.492 69.067 70.488 72.493 70.610 31 Singapore/dollar n.a. n.a. 2.1053 2.0530 2.0607 2.1095 2.1213 2.1329 2.0886 32 South Africa/rand/1 118.72 122.72 114.77 103.10 103.46 101.95 97.930 94.880 94.010 33 South Korea/won n.a. n.a. n.a. 694.68 705.17 710.05 714.67 721.03 724.35 34 Spain/peseta 67.158 71.758 92.396 96.97 98.357 100.70 104.53 106.15 102.987 35 Sri Lanka/rupee 15.570 16.167 18.967 20.259 20.228 20.611 20.700 20.575 20.365 36 Sweden/krona 4.2892 4.2309 5.0659 5.5411 5.6206 5.7579 5.8361 5.9144 5.7888 37 Switzerland/franc 1.6643 1.6772 1.9674 1.7859 1.8152 1.8909 1.8886 1.9624 1.9500 38 Thailand/baht n.a. n.a. 21.731 23.050 23.050 23.050 23.050 23.025 23.000 39 United Kingdom/pound1 212.24 227.74 202.43 190.33 188.60 184.70 180.53 177.20 181.03 40 Venezuela/bolivar n.a. n.a. 4.2781 4.2958 4.2960 4.2960 4.3012 4.3023 4.2991 MEMO: United States/dollar2 88.09 87.39 102.94 105.21 106.96 110.36 112.45 114.07 111.03 1. Value in U.S. cents. revised as of August 1978. For description and back data, see "Index of 2. 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 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 (1) a decrease, (2) a negative obligations of the Treasury. "State and local government" figure, or (3) an outflow. also includes municipalities, special districts, and other politi- "U.S. government securities" may include guaranteed cal subdivisions. issues of U.S. government agencies (the flow of funds figures In some of the tables details do not add to totals because of also include not fully guaranteed issues) as well as direct rounding. STATISTICAL RELEASES List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases June 1981 A78 SPECIAL TABLES Published Irregularly, with Latest Bulletin Reference Commercial bank assets and liabilities, December 31, 1980 April 1981 A72 Assets and liabilities of U.S. branches and agencies of foreign banks, December 31, 1981 April 1982 A78 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 Commercial bank assets and liabilities, December 31, 1981 April 1982 A72 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 PRESTON MARTIN, Vice Chairman J. CHARLES PARTEE OFFICE OF BOARD MEMBERS OFFICE OF STAFF DIRECTOR FOR MONETARY AND FINANCIAL POLICY JOSEPH R. COYNE, Assistant to the Board DONALD J. WINN, Assistant to the Board STEPHEN H. AXILROD, Staff Director FRANK O'BRIEN, JR., Deputy Assistant to the Board EDWARD C. ETTIN, Deputy Staff Director ANTHONY F. COLE, Special Assistant to the Board MURRAY ALTMANN, Assistant to the Board WILLIAM R. MALONI, Special Assistant to the Board STANLEY J. SIGEL, Assistant to the Board NAOMI P. SALUS, Special Assistant to the Board NORMAND R.V. BERNARD, Special Assistant to the Board JAMES L. STULL, Manager, Operations Review Program DIVISION OF RESEARCH AND STATISTICS LEGAL DIVISION JAMES L. KICHLINE, Director MICHAEL BRADFIELD, General Counsel JOSEPH S. ZEISEL, Deputy Director ROBERT E. MANNION, Deputy General Counsel MICHAEL J. PRELL, Associate Director J. VIRGIL MATTINGLY, JR., Associate General Counsel JARED J. ENZLER, Senior Deputy Associate Director GILBERT T. SCHWARTZ, Associate General Counsel DONALD L. KOHN, Senior Deputy Associate Director RICHARD M. ASHTON, Assistant General Counsel ELEANOR J. STOCKWELL, Senior Deputy Associate Director NANCY P. JACKLIN, Assistant General Counsel J. CORTLAND G. PERET, Deputy Associate Director MARYELLEN A. BROWN, Assistant to the General Counsel HELMUT F. WENDEL, Deputy Associate Director MARTHA BETHEA, Assistant Director JOE M. CLEAVER, Assistant Director OFFICE OF THE SECRETARY ROBERT M. FISHER, Assistant Director DAVID E. LINDSEY, Assistant Director WILLIAM W. WILES, Secretary LAWRENCE SLIFMAN, Assistant Director BARBARA R. LOWREY, Associate Secretary FREDERICK M. STRUBLE, Assistant Director JAMES MCAFEE, Associate Secretary STEPHEN P. TAYLOR, Assistant Director *DOLORES S. SMITH, Assistant Secretary PETER A. TINSLEY, Assistant Director LEVON H. GARABEDIAN, Assistant Director (Administration) DIVISION OF CONSUMER AND COMMUNITY AFFAIRS DIVISION OF INTERNATIONAL FINANCE JANET O. HART, Director EDWIN M. TRUMAN, Director GRIFFITH L. GARWOOD, Deputy Director ROBERT F. GEMMILL, Associate Director JERAULD C. KLUCKMAN, Associate Director CHARLES J. SIEGMAN, Associate Director GLENN E. LONEY, Assistant Director LARRY J. PROMISEL, Senior Deputy Associate Director DALE W. HENDERSON, Deputy Associate Director SAMUEL PIZER, Staff Adviser DIVISION OF BANKING RALPH W. SMITH, JR., Assistant Director SUPERVISION AND REGULATION 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 SYDNEY M. SUSSAN, 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 IHOWARD 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 Division of Consumer and Community Affairs. tOn loan from the Federal Reserve Bank of New York. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 Federal Reserve Bulletin • June 1982 FOMC and Advisory Councils FEDERAL OPEN MARKET COMMITTEE PAUL A. VOLCKER, Chairman ANTHONY M. SOLOMON, Vice Chairman JOHN J. BALLES LYLE E. GRAMLEY J. CHARLES PARTEE ROBERT P. BLACK KAREN N. HORN EMMETT J. RICE WILLIAM F. FORD PRESTON MARTIN NANCY H. TEETERS HENRY C. WALLICH STEPHEN H. AXILROD, Staff Director RICHARD G. DAVIS, Associate Economist MURRAY ALTMANN, Secretary EDWARD C. ETTIN, Associate Economist NORMAND R. V. BERNARD, Assistant Secretary MICHAEL W. KERAN, Associate Economist NANCY M. STEELE, Deputy Assistant Secretary DONALD L. KOCH, Associate Economist MICHAEL BRADFIELD, General Counsel JAMES PARTHEMOS, Associate Economist JAMES H. OLTMAN, Deputy General Counsel MICHAEL J. PRELL, Associate Economist ROBERT E. MANNION, Assistant General Counsel CHARLES J. SIEGMAN, Associate Economist JAMES L. KICHLINE, Economist EDWIN M. TRUMAN, Associate Economist JOHN M. DAVIS, Associate Economist JOSEPH S. ZEISEL, Associate Economist PETER D. STERNLIGHT, Manager for Domestic Operations, System Open Market Account SAM Y. CROSS, Manager for Foreign Operations, System Open Market Account FEDERAL ADVISORY COUNCIL 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 Karen N. Horn 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 Eugene E. Cohen Patrick K. Barron 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 W. L. Hadley Griffin Donald W. Moriarty, Jr. Little Rock 72203 E. Ray Kemp, Jr. John F. Breen Louisville 40232 James F. Thompson Donald L. Henry Memphis 38101 Donald B. Weis Randall C. Sumner 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 Lawrence L. Crum 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 Digitized for VFiRrgAinSiaE 2R53 11; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; and Milwaukee, Wisconsin 53202. 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- OPEN MARKET POLICIES AND OPERATING PROCEDURES— TIONS. 1974. 125 pp. STAFF STUDIES. 1971. 218 pp. $2.00 each; 10 or more to ANNUAL REPORT. one address, $1.75 each. FEDERAL RESERVE BULLETIN. Monthly. $20.00 per year or REAPPRAISAL OF THE FEDERAL RESERVE DISCOUNT MECHA- $2.00 each in the United States, its possessions, Canada, NISM. Vol. 1. 1971. 276 pp. Vol. 2. 1971. 173 pp. Vol. 3. and Mexico; 10 or more of same issue to one address, 1972. 220 pp. Each volume $3.00; 10 or more to one $18.00 per year or $1.75 each. Elsewhere, $24.00 per address, $2.50 each. year or $2.50 each. THE ECONOMETRICS OF PRICE DETERMINATION CONFER- BANKING AND MONETARY STATISTICS. 1914-1941. (Reprint ENCE, October 30-31, 1970, Washington, D.C. 1972. 397 of Part I only) 1976. 682 pp. $5.00. pp. Cloth ed. $5.00 each; 10 or more to one address, BANKING AND MONETARY STATISTICS, 1941-1970. 1976. $4.50 each. Paper ed. $4.00 each; 10 or more to one 1,168 pp. $15.00. address, $3.60 each. ANNUAL STATISTICAL DIGEST FEDERAL RESERVE STAFF STUDY: WAYS TO MODERATE 1971-75. 1976. 339 pp. $5.00 per copy. FLUCTUATIONS IN HOUSING CONSTRUCTION. 1972. 487 1972-76. 1977. 377 pp. $10.00 per copy. pp. $4.00 each; 10 or more to one address, $3.60 each. 1973-77. 1978. 361 pp. $12.00 per copy. LENDING FUNCTIONS OF THE FEDERAL RESERVE BANKS. 1974-78. 1980. 305 pp. $10.00 per copy. 1973. 271 pp. $3.50 each; 10 or more to one address, 1970-79. 1981. 587 pp. $20.00 per copy. $3.00 each. 1980. 1981. 241 pp. $10.00 per copy. IMPROVING THE MONETARY AGGREGATES: REPORT OF THE FEDERAL RESERVE CHART BOOK. Issued four times a year in ADVISORY COMMITTEE ON MONETARY STATISTICS. February, May, August, and November. Subscription 1976. 43 pp. $1.00 each; 10 or more to one address, $.85 includes one issue of Historical Chart Book. $7.00 per each. year or $2.00 each in the United States, its possessions, ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— Canada, and Mexico. Elsewhere, $10.00 per year or Regulation Z) Vol. I (Regular Transactions). 1969. 100 $3.00 each. pp. Vol. II (Irregular Transactions). 1969. 116 pp. Each HISTORICAL CHART BOOK. Issued annually in Sept. Subscrip- volume $1.00; 10 or more of same volume to one tion to Federal Reserve Chart Book includes one issue. address, $.85 each. $1.25 each in the United States, its possessions, Canada, FEDERAL RESERVE MEASURES OF CAPACITY AND CAPACITY and Mexico; 10 or more to one address, $1.00 each. UTILIZATION. 1978. 40 pp. $1.75 each; 10 or more to one Elsewhere, $1.50 each. address, $1.50 each. SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SE- THE BANK HOLDING COMPANY MOVEMENT TO 1978: A RIES OF CHARTS. Weekly. $15.00 per year or $.40 each in COMPENDIUM. 1978. 289 pp. $2.50 each; 10 or more to the United States, its possessions, Canada, and Mexico; one address, $2.25 each. 10 or more of same issue to one address, $13.50 per year IMPROVING THE MONETARY AGGREGATES: STAFF PAPERS. or $.35 each. Elsewhere, $20.00 per year or $.50 each. 1978. 170 pp. $4.00 each; 10 or more to one address, THE FEDERAL RESERVE ACT, as amended through December $3.75 each. 1976, with an appendix containing provisions of certain 1977 CONSUMER CREDIT SURVEY. 1978. 119 pp. $2.00 each. other statutes affecting the Federal Reserve System. 307 FLOW OF FUNDS ACCOUNTS. 1949-1978. 1979. 171 pp. $1.75 pp. $2.50. each; 10 or more to one address, $1.50 each. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FED- INTRODUCTION TO FLOW OF FUNDS. 1980. 68 pp. $1.50 each; ERAL RESERVE SYSTEM. 10 or more to one address, $1.25 each. BANK CREDIT-CARD AND CHECK-CREDIT PLANS. 1968. 102 PUBLIC POLICY AND CAPITAL FORMATION. 1981. 326 pp. pp. $1.00 each; 10 or more to one address, $.85 each. $13.50 each. REPORT OF THE JOINT TREASURY-FEDERAL RESERVE STUDY NEW MONETARY CONTROL PROCEDURES: FEDERAL RE- OF THE U.S. GOVERNMENT SECURITIES MARKET. 1969. SERVE STAFF STUDY, 1981. 48 pp. $.25 each; 10 or more to one address, $.20 each. SEASONAL ADJUSTMENT OF THE MONETARY AGGREGATES: JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOV- REPORT OF THE COMMITTEE OF EXPERTS ON SEASONAL ERNMENT SECURITIES MARKET; STAFF STUDIES—PART ADJUSTMENT TECHNIQUES. 1981. 55 pp. $2.75 each. 1. 1970. 86 pp. $.50 each; 10 or more to one address, $.40 FEDERAL RESERVE REGULATORY SERVICE. Looseleaf; updateach. PART 2, 1971. 153 pp. and PART 3, 1973. 131 pp. ed at least monthly. (Requests must be prepaid.) Each volume $1.00; 10 or more to one address, $.85 Consumer and Community Affairs Handbook. $60.00 per each. year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A75 Monetary Policy and Reserve Requirements Handbook. STAFF STUDIES.- Summaries Only Printed in the Bulletin $60.00 per year. Securities Credit Transactions Handbook. $60.00 per year. Studies and papers on economic and financial subjects Federal Reserve Regulatory Service. 2 vols. (Contains all that are of general interest. Requests to obtain single copies three Handbooks plus substantial additional material.) of the full text or to be added to the mailing list for the series $175.00 per year. may be sent to Publications Services. Rates for subscribers outside the United States are as follows and include additional air mail costs: PERFORMANCE AND CHARACTERISTICS OF EDGE CORPORA- Federal Reserve Regulatory Service, $225.00 per year. TIONS, by James V. Houpt. Feb. 1981. 56 pp. Each Handbook, $75.00 per year. BANKING STRUCTURE AND PERFORMANCE AT THE STATE WELCOME TO THE FEDERAL RESERVE, December 1980. LEVEL DURING THE 1970S, by Stephen A. Rhoades. Mar. 1981. 26 pp. FEDERAL RESERVE DECISIONS ON BANK MERGERS AND AC- QUISITIONS DURING THE 1970S, by Stephen A. Rhoades. CONSUMER EDUCATION PAMPHLETS Aug. 1981. 16 pp. Short pamphlets suitable for classroom use. Multiple BELOW THE BOTTOM LINE: THE USE OF CONTINGENCIES copies available without charge. AND COMMITMENTS BY COMMERCIAL BANKS, by Benjamin Wolkowitz and others. Jan. 1982. 186 pp. Alice in Debitland MULTIBANK HOLDING COMPANIES: RECENT EVIDENCE ON Consumer Handbook to Credit Protection Laws COMPETITION AND PERFORMANCE IN BANKING MAR- Dealing with Inflation: Obstacles and Opportunities KETS, by Timothy J. Curry and John T. Rose. Jan. 1982. The Equal Credit Opportunity Act and . . . Age 9 pp. The Equal Credit Opportunity Act and . . . Credit Rights in COSTS, SCALE, ECONOMIES, COMPETITION, AND PRODUCT Housing MIX IN THE U.S. PAYMENTS MECHANISM, by David B. The Equal Credit Opportunity Act and . . . Doctors, Law- Humphrey. Apr. 1982. 18 pp. yers, Small Retailers, and Others Who May Provide DIVISIA MONETARY AGGREGATES: COMPILATION, DATA, Incidental Credit AND HISTORICAL BEHAVIOR, by William A. Barnett and The Equal Credit Opportunity Act and . . . Women Paul A. Spindt. May 1982. 82 pp. Fair Credit Billing THE COMMUNITY REINVESTMENT ACT AND CREDIT ALLO- Federal Reserve Glossary CATION, by Glen Canner. June 1982. 8 pp. Guide to Federal Reserve Regulations How to File A Consumer Credit Complaint If You Borrow To Buy Stock REPRINTS If You Use A Credit Card Most of the articles reprinted do not exceed 12 pages. Series on the Structure of the Federal Reserve System The Board of Governors of the Federal Reserve System Revision of Bank Credit Series. 12/71. The Federal Open Market Committee Rates on Consumer Installment Loans. 9/73. Federal Reserve Bank Board of Directors Industrial Electric Power Use. 1/76. Federal Reserve Banks Revised Series for Member Bank Deposits and Aggregate Monetary Control Act of 1980 Reserves. 4/76. Truth in Leasing Federal Reserve Operations in Payment Mechanisms: A U.S. Currency Summary. 6/76. What Truth in Lending Means to You Perspectives on Personal Saving. 8/80. The Impact of Rising Oil Prices on the Major Foreign Industrial Countries. 10/80. Federal Reserve and the Payments System: Upgrading Electronic Capabilities for the 1980s. 2/81. Survey of Finance Companies, 1980. 5/81. Bank Lending in Developing Countries. 9/81. U.S. International Transactions in 1981. 4/82. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES- BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM' Approximate Date or period Weekly Releases release days to which data refer Aggregate Reserves of Depository Institutions and Monetary Base. Monday Week ended previous H.3 (502) [1.22] Wednesday Actions of the Board; Applications and Reports. H.2 (501) Friday Week ended previous Saturday Assets and Liabilities of Domestically Chartered and Foreign Related Wednesday Wednesday, 2 weeks earlier Banking Institutions H.8 (510) [1.25] Changes in State Member Banks. K.3 (615) Tuesday Week ended previous Saturday Factors Affecting Reserves of Depository Institutions and Condition Friday Week ended previous Statement of Federal Reserve Banks. H.4.1 (503) [1.11] Wednesday Foreign Exchange Rates. H. 10 (512) [3.28] Monday Week ended previous Friday Money Stock Measures and Liquid Assets. H.6 (508) [1.21] Friday Week ended Wednesday of of previous week Selected Borrowings in Immediately Available Funds of Large Thursday Week ended Thursday of Member Banks. H.5 (507) [1.13] previous week Selected Interest Rates. H. 15 (519) [ 1.35] Monday Week ended previous Saturday Weekly Consolidated Condition Report of Large Commercial Banks Friday Wednesday, 1 week earlier and Domestic Subsidiaries. H.4.2 (504) [1.26, 1.27, 1.28, 1.29, 1.291] Weekly Report of Assets and Liabilities of International Banking Monday Wednesday, 2 weeks earlier Facilities. H. 14 (518) Weekly Summary of Banking and Credit Measures. H.9 (511) Friday Week ended previous Wednesday; and week ended Wednesday of previous week Monthly Releases Capacity Utilization: Manufacturing and Materials. G.3 (402) [2.11] Mid-month Previous month Changes in Status of Banks and Branches. G.4.5 (404) 25th of month Previous month Commercial and Industrial Loans to U.S. Addressees Excluding 2nd Monday of Last Wednesday of previous Bankers' Acceptances and Commercial Paper by Industry. G.27 month month (429) [1.30] Consumer Installment Credit. G.19 (421) [1.56, 1.57] 5th working day of 2nd month previous month Debits and Deposit Turnover at Commercial Banks. G.6 (406) [1.20] 25th of month Previous month Finance Companies. G.20 (422) [1.52, 1.53] 5th working day of 2nd month previous month Foreign Exchange Rates. G.5 (405) [3.28] I st of month Previous month 1. Release dates are those anticipated or usually met. However, please note that for some releases there is normally a certain variability because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. The BULLETIN table that reports these data is designated in brackets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A77 Approximate Date or period Monthly Releases—Continued release days to which data refer Industrial Production. G.12.3 (414) [2.13] Mid-month Previous month Loan Commitments at Selected Large Commercial Banks. G.21 (423) 20th of month 2nd month previous Loans and Securities at all Commercial Banks. G.7 (407) [1.23] 20th of month Previous month Major Nondeposit Funds of Commercial Banks. G. 10 (411) [1.24] 20th of month Previous month Maturity Distribution of Outstanding Negotiable Time Certificates of 24th of month Last Wednesday of previous Deposit. G.9 (410) month Research Library—Recent Acquisitions. G.15 (417) 1st of month Previous month Selected Interest Rates. G. 13 (415) [1.35] 3rd working day of Previous month month Summary of Equity Security Transactions. G.16 (418) Last week of Release date month Quarterly Releases Agricultural Finance Databook E. 15 (125) End of March, January, April, July, and June, September October and December Automobile Credit. E.4 (114) 4th of April, July, Previous quarter October, and January Finance Rates and Other Terms on Selected Types of Consumer 25th of January, 2nd month previous Installment Credit Extended by Major Finance Companies. E.10 April, July and (120) October Flow of Funds: Seasonally adjusted and unadjusted. Z.l (780) [1.58, 15th of February, Previous quarter 1.59] May, August, and November Geographical Distribution of Assets and Liabilities of Major Foreign 15th of March, Previous quarter Branches of U.S. Banks. E.ll (121) June, September, and December Finance Rates on Selected Consumer Installment Loans at Reporting 15th of March, February, May, August, and Commercial Banks. E.12 (122) June, November September, and December Survey of Terms of Bank Lending. E.2 (111) [1.34] 15th of March, February, May, August, and June, November September, and December Semiannual Releases Domestic Offices, Commercial Bank Assets and Liabilities May and End of previous December Consolidated Report of Condition. E.3.4 (113) [1.26, 1.27, 1.28] November and June Check Collection Services—Federal Reserve System. E.9 (119) February and July Previous 6 months May and End of previous December Country Exposure Lending Survey. E. 16 (126) November and June List of OTC Margin Stocks. E.7 (117) February, June Release date and October Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Approximate Date or period AA nnual I R n el i e ases release dayJs to which data rJe fer Aggregate Summaries of Annual Surveys of Security Credit February End of previous June Extension. C.2 (101) Bank Holding Companies and Subsidiary Banks. C.6 (105) March Previous year Domestic Foreign Insured Bank Income by Size of Bank. C.4 (103) End of May Previous year Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A80 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, 67 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, 58, 59-62, 64-67 Foreign transactions, 66 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, 67 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 Ownership of securities issued by, 29 National income, 52 Rates, 3, 27 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

A81 The Federal Reserve System Boundaries of Federal Reserve Districts and Their Branch Territories LEGEND ~~~~ Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch * Federal Reserve Branch Cities Territories Federal Reserve Bank Facility Q Board of Governors of the Federal Reserve System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis